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CB Industrial Product Holding Berhad Equipping Palm Oil Industries Around The World 2017 Full Year Results Update

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Page 1: CB Industrial Product Holding Berhad - cbip.com.my · Review of Performance 2 Movement of CBIP mimics the movement of the Bursa Malaysia Plantation Index, which is largely dependent

CB Industrial Product Holding BerhadEquipping Palm Oil Industries Around The World

2017 Full Year Results Update

Page 2: CB Industrial Product Holding Berhad - cbip.com.my · Review of Performance 2 Movement of CBIP mimics the movement of the Bursa Malaysia Plantation Index, which is largely dependent

Review of Performance

2

Movement of CBIP mimics the movement of the Bursa Malaysia

Plantation Index, which is largely dependent upon the price of CPO

Quarterly and Full Year Review

Continuing Operations Quarter ended

31 December

% change 12 months period ended

31 December

% change

2017 2016 2017 2016

(RM’000) (RM’000) (RM’000) (RM’000)

Revenue 225,585 186,210 -21% 669,777 577,883 16%

Profit from operations 11,603 51,529 -77% 74,969 129,030 -42%

Share of results of associates and

joint ventures

0.945 5,361 >-100% 15,337 11,960 28%

Profit before taxation 11,738 56,295 -79% 87,988 139,528 -37%

PATAMI 0.748 45,856 >-100% 50,461 101,649 -50%

Revenue 2017 increased 16% mainly

due to higher progress billings by

special purpose vehicles division,

mitigated by lower revenue contribution

from the palm oil engineering division

due to lower project implementation

Profit before taxation for 2017 decreased

37% mainly due to FOREX losses of

RM34mil and a lower contribution from

the palm oil engineering division (timing

of progress billing on new contracts)

Page 3: CB Industrial Product Holding Berhad - cbip.com.my · Review of Performance 2 Movement of CBIP mimics the movement of the Bursa Malaysia Plantation Index, which is largely dependent

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Review of Performance

3

Revenue Breakdown

12 months period ended 31 December 2016

Profit Before Taxation Breakdown

12 months period ended 31 December 2017

Palm Oil Engineering

72%

Special Purpose Vehicles

27%

Palm Oil Plantations

1%

Profit Before Taxation 12 months period ended 31 December % change

2017 2016

(RM’000) (RM’000)

Palm Oil Engineering 43,365 108,809 -60.1%

Palm Oil Plantations -5,799 -7,558 +30.3%

Special Purpose Vehicles 35,085 26,317 +33.3%

Share of results of associates and jointly-controlled entity 15,337 11,960 +28.2%

Total 87,988 139,528 -36.9%

Palm Oil Engineering

51%

Special Purpose Vehicles

48%

Palm Oil Plantations

1%

Page 4: CB Industrial Product Holding Berhad - cbip.com.my · Review of Performance 2 Movement of CBIP mimics the movement of the Bursa Malaysia Plantation Index, which is largely dependent

Prospect

4

Palm Oil Engineering

Orderbook as at December 2017 stands at

RM426mil

RM’000

2018 is expected to be a better year in terms of

new contract flows, and should contribute

positively to earnings in 2019-2020

493,000

441,000 448,000436,000

424,000 426,000

380,000

400,000

420,000

440,000

460,000

480,000

500,000

3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017

Orderbook

Page 5: CB Industrial Product Holding Berhad - cbip.com.my · Review of Performance 2 Movement of CBIP mimics the movement of the Bursa Malaysia Plantation Index, which is largely dependent

Prospect

5

Special Purpose Vehicles

Orderbook for the special purpose vehicles

as at December 2017 is approximately

RM130mil

530,000

448,000405,000

355,000

254,000

130,000

0

100,000

200,000

300,000

400,000

500,000

600,000

3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

Orderbook

Page 6: CB Industrial Product Holding Berhad - cbip.com.my · Review of Performance 2 Movement of CBIP mimics the movement of the Bursa Malaysia Plantation Index, which is largely dependent

Prospect

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Palm Oil Plantations - Indonesia

With current landbank of

approximately 32,000 ha in Central

Kalimantan, Indonesia aggressive

plantation development has

commenced since first half of 2013

Of the 32,000 ha in Indonesia,

approximately 11,574 ha has been

planted as at Decemeber 2017 with

approximately 2,000 ha targeted to be

planted for the year 2018

Revenue from the Indonesian

plantation is expected to be realized in

mid 2018, when the first mill is

expected to be completed

Page 7: CB Industrial Product Holding Berhad - cbip.com.my · Review of Performance 2 Movement of CBIP mimics the movement of the Bursa Malaysia Plantation Index, which is largely dependent

Prospect

7

Oil Palm Plantation - Indonesia

Page 8: CB Industrial Product Holding Berhad - cbip.com.my · Review of Performance 2 Movement of CBIP mimics the movement of the Bursa Malaysia Plantation Index, which is largely dependent

Prospect

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Oil Palm Plantation – Associates and JV

With effective planted area attributable

to CBIP of 7,000 ha, the associates and

JV plantation assets has posted a

combined profit of RM4.39 million for

the quarter ended 30 September 2017,

compared to a profit of RM5.51 million

in the corresponding quarter in 2016

With a non-controlling interest,

performance of the associates and JV

plantation assets is to a large extent,

dependent upon the crude palm oil

selling price and yield.Planted: 1,264 ha

Planted: 2,319 ha

Planted: 3,448 ha

Page 9: CB Industrial Product Holding Berhad - cbip.com.my · Review of Performance 2 Movement of CBIP mimics the movement of the Bursa Malaysia Plantation Index, which is largely dependent

Registered Office

Further Information

9

Registered Office

CB Industrial Product Holding Berhad

Lot 4, Jalan Waja 15

Kawasan Perusahaan Telok Panglima Garang

42500 Telok Panglim Garang

Selangor Darul Ehsan

Telephone No.: 03 3122 7117

Facsimile No.: 03 2122 1580

E-mail: [email protected]

Website: www.cbip.com.my

Contact Person

Jonathan Lai

Investor Relations & Corporate Affairs

CB Industrial Product Holding Berhad

Telephone No.: 03 3122 2823

Cellphone No.: 013 3491193

Facsimile No.: 03 2122 1580

E-mail: [email protected]

Disclaimer

Certain statements in this presentation are based on historical results which may not be

reflective of future results. Other statements, including without limitation, those regarding

our future prospects, strategies and objectives of our Group, which are forward-looking in

nature, are subject to uncertainties and contingencies. Although we believe that the

expectations reflected in such forward-looking statements are reasonable at this time, there

can be no assurance that such expectations will subsequently materialise. The inclusion in

this presentation should not be regarded as a representation or warranty by our Group or

our management team that the plans and objectives of our Group will be achieved.