1 disclaimer: the contents of this presentation include materials which may be capable of being...
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Disclaimer: The contents of this presentation include materials which may be capable of being interpreted as forward-looking statements. Such statements are merely estimates and targets, based on circumstances and reasonable assumptions which apply only at the date of such statements. Accordingly, no reliance should be placed on any forward-looking statements, express or implied, contained in this presentation.
PRESS AND ANALYST BRIEFING
1H2013 Results
27 August 2013
Agenda
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Group Financial Highlights
Share Price Performance
Prospects for 2013
Dividend Record
Review of Major Operations
5-Year Financial Performance
Capital Commitments
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Group Financial
Highlights
Financial Results FOR THE 6 MONTHS ENDED 30 JUNE 2013
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PPB GroupOperations
Flour & Feed Milling, & Grains Trading
Marketing, Distribution & Manufacturingof Consumer Products
Film Exhibition & Distribution
Waste Management & Utilities
Property Investment & Development
Chemicals, Livestock, Investments & Other Operations
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(Figures in RM) 2013 2012 CHANGERevenue 1.58 bil 1.46 bil 9%Operating Expenses 1.51 bil 1.39 bil 9%Share of Wilmar’s Profit 300 mil 209 mil 44%PBT 471 mil 324 mil 46%Profit for the Period 439 mil 302 mil 46%EPS 36.06 sen 24.20 sen 49%
Financial Results FOR THE 6 MONTHS ENDED 30 JUNE 2013
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2013 2012
EPS 36.06 sen 24.20 sen
ROE Attributable to Owners of the Parent 2.9% 2.0%
Net Assets Per Share Attributable to Owners of the Parent RM12.52 RM11.97
Financial Ratios FOR THE 6 MONTHS ENDED 30 JUNE 2013
Segmental Information FOR THE 6 MONTHS ENDED 30 JUNE 2013
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* Chemicals Trading & Manufacturing [3.37%], Livestock Farming [2.54%], Investment Income [0.46%] & Others [6.87%]
Flour & Feed Milling, & Grains Trading 60%
12%
Waste Management & Utilities3%
Film Exhibition & Distribution10%
Property Investment & Development2%
13%
TOTAL REVENUE RM1.58 bil
Segmental Information FOR THE 6 MONTHS ENDED 30 JUNE 2013
Marketing, Distribution & Manufacturing of Consumer Products
Chemicals, Livestock, Investments & Others*
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* Chemicals Trading & Manufacturing [0.37%], Livestock Farming [-6.09%], Investment Income [14.63%] & Others [1.59%]
TOTAL SEGMENT PROFITS RM156 mil
Flour & Feed Milling, & Grains Trading 44%
Marketing, Distribution & Manufacturingof Consumer Products
7%
Property Investment & Development19%
Waste Management & Utilities2%
Film Exhibition & Distribution17%
11% Chemicals, Livestock, Investments & Others*
Segmental Information FOR THE 6 MONTHS ENDED 30 JUNE 2013
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ReviewOf
MajorOperations
Review of Major Operations
FLOUR & FEED MILLING, & GRAINS TRADING
The increase in revenue for1H2013 was primarily driven byhigher sales volume and improvedselling prices of flour and feed.
The higher segment profit wasmainly due to better performance in grains trading.
10Revenue Segment Profit
0
100
200
300
400
500
600
700
800
900
1000
905
66
993
69
1H20121H2013
RM Million 10%
5%
Review of Major Operations
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MARKETING, DISTRIBUTION & MANUFACTURING OF CONSUMER PRODUCTS
Revenue and segment profitincreased due to improved salesof agency products with bettermargins.
Revenue Segment Profit0
20
40
60
80
100
120
140
160
180
200
192
8.7
193
10.8
1H20121H2013
RM Million 1%
25%
Review of Major Operations
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FILM EXHIBITION & DISTRIBUTION
Revenue for 1H2013 increased due to contribution from new cinemas opened in 2012 and 1H2013, improved film distribution and screen advertising revenue.
In line with the improved revenue, profit climbed 40% to RM27 mil.
Revenue Segment Profit0
20
40
60
80
100
120
140
160
180
142
20
172
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1H20121H2013
RM Million21%
40%
Review of Major Operations
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ENVIRONMENTAL ENGINEERING, WASTE MANAGEMENT & UTILITIES
Revenue and segment profit declined as most of the environmental engineering projects were at completion stages.
The newly secured projects in 2013 had yet to contribute significantly in 1H2013.
Revenue Segment Profit0
10
20
30
40
50
60
70
60
5.1
46
2.9
1H20121H2013
RM Million23%
43%
Review of Major Operations
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PROPERTY INVESTMENT & DEVELOPMENT
Revenue decreased for 1H2013. This was mainly due to higherrevenue recognised in 1H2012 onthe sale of bungalows in BukitSegar, Kuala Lumpur andsemi-detached houses in TamanTanah Aman, Seberang PraiTengah.
Segment profit increased mainlydue to a gain of RM16.8 mil from the sale of an investment property. Revenue Segment Profit
0
5
10
15
20
25
30
35
40
40
13
32
30
1H20121H2013
RM Million 20%
>100%
Review of Major Operations
CHEMICALS, LIVESTOCK, INVESTMENTS & OTHER OPERATIONS
The growth in revenue wasmainly contributed by increasedbakery sales and highercontribution from livestock segment.
Segment profits improved mainlydue to the gain on the disposal ofthe Group’s investment inTradewinds (M) Berhad.
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-50
0
50
100
150
200
250
196
-8.4
219
16.4
1H20121H2013
Revenue Segment Profit/ (Loss)
RM Million
12%
>100%
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5-YearFinancial
Performance
5-Year PBT of PPB Group
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Note : PBT for FY2010 excludes the gain of RM841 million from the disposal of the sugar-related assets. If the profit is included, the PBT would be RM1.970 billion.
5-Year PBT of PPB Group
2009 2010 2011 2012 Jan-Jun 2013 -
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1,732 1,129 1,057 917 471
Year
RM Million
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CapitalCommitments
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(All figures in RM’million) 2013As reported previously (7 March 2013) 592Additions/ Project Revision 107
699Amount Spent (171)Balance to be Spent 528
Capital Commitments
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CAPITAL COMMITMENTS RM528 mil
Flour & Feed Milling, & Grains TradingRM245 mil
BakeryRM48 mil
Film Exhibition & DistributionRM147 mil
Property Investment & DevelopmentRM60 mil
Capital Commitments by Segments Capital Commitments by Segments
RM7 mil Consumer Products
RM9 mil Frozen Food Processing
RM12 mil Others
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DividendRecord
Dividend Record
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Dividend Net NetPayout Ratio
Per Share Dividend Dividend Gross Net Paid/payable Yield Group Company
Year (sen) (sen) (RM Million) (%) (%) (%)
2013Interim# 8 8 94.840 0.6 22.2 84.3
2012 20 20 237.100 1.7 28.2 63.0
2011 23 23 272.665 1.3 27.8 28.4
2010* 88 88 1,043.240 5.1 100.1 294.12009* 73 73 865.415 4.6 53.6 14.8
* Include Special Dividends of 65 sen per share in year 2010 and 50 sen per share in year 2009.# The interim single tier dividend of 8 sen per share will be paid on 27 September 2013.
Dividend RecordDividend Record
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Share PricePerformance
Share Price Performance
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
1,450.00
1,500.00
1,550.00
1,600.00
1,650.00
1,700.00
1,750.00
1,800.00
1,850.00PPB Shares - Month End Closing Price (RM) FBM KLCI
PPB
Sha
res
- Mon
th E
nd C
losi
ng P
rice
(RM
)
FBM
KLC
I
2012 2013
FBM KLCI (23.08.13) 1,721.07
PPB (23.08.13) RM13.92
Jan-Jun 2013 PPB FBM KLCI
Closing Price (High) 14.16 1,788.43
Closing Price (Low) 12.00 1,613.33
Closing (28.06.13) 14.16 1,773.54
Average Daily Volume 744,345 167,433,601
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Prospectsfor
2013
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Prospects for 2013
The domestic demand in Malaysia is expected to be well supported by resilient consumer and business spending. This will continue to drive the performance of the Group’s core business segments in the remaining quarters.
Regionally, expansion of the Group’s flour milling capacity in Indonesia and Vietnam is progressively coming on-stream to supply additional volume in those markets. Sustained by continuing robust domestic consumption, the Group’s overseas operations are expected to maintain growth for the rest of the year.
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Prospects for 2013
On the whole, the Group’s operations are expected to perform well in 2013; nonetheless the overall financial results depend substantially on Wilmar’s business performance for the year.
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Questions&
Answers