PRESS AND ANALYST BRIEFING
Unaudited FY2013 Results
6 March 2014
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.
1
Agenda
Group Financial Highlights
Review of Major Operations
Key Achievements in 2013
5-Year Financial Performance
Capital Commitments
Dividend Record
Share Price Performance
Prospects for 2014
2
Group
Financial
Highlights
3
Financial Results FOR THE YEAR ENDED 31 DEC 2013
Flour & Feed
Milling, &
Grains
Trading
Marketing,
Distribution &
Manufacturing
of Consumer
Products
Chemicals,
Livestock,
Investments &
Others
Operations
PPB Group
Operations
Property
Investment &
Development
Film
Exhibition &
Distribution
Environmental
Engineering,
Waste
Management
& Utilities
4
Financial Results FOR THE YEAR ENDED 31 DEC 2013
(Figures in RM)
2013
2012
Revenue
3.313 bil
3.018 bil
10%
Operating Expenses
3.145 bil
2.881 bil
9%
Share of Wilmar’s Profit
0.763 bil
0.694 bil
10%
PBT
1.079 bil
0.917 bil
18%
1.003 bil
83.86 sen
0.868 bil
71.04 sen
15%
18%
Profit for the Year
EPS
CHANGE
5
Financial Ratios
Ratios FOR
FORTHE
THEYEAR
YEARENDED
ENDED
DEC
2013
3131
DEC
2013
EPS
ROE Attributable to
Owners of the Parent
Net Assets Per Share Attributable to
Owners of the Parent
2013
2012
83.86 sen
71.04 sen
6.3%
5.9%
RM13.21
RM12.04
6
Segmental Information FOR THE YEAR ENDED 31 DEC
2013
TOTAL
REVENUE
RM3.313 bil
59%
Flour & Feed Milling, & Grains Trading
12%
Marketing, Distribution & Manufacturing
of Consumer Products
10%
Film Exhibition & Distribution
3%
Environmental Engineering, Waste
Management & Utilities
2%
Property Investment & Development
14%
Chemicals, Livestock, Investments & Others*
* Chemicals Trading & Manufacturing [3%], Livestock Farming [3%], Investment Income [1%], Bakery [3%],
Frozen Food [1%] & Others [3%]
7
Segmental Information FOR THE YEAR ENDED 31 DEC
2013
TOTAL
SEGMENT
PROFITS
RM294 mil
42%
Flour & Feed Milling, & Grains Trading
17%
Film Exhibition & Distribution
17%
Property Investment & Development
8%
Marketing, Distribution & Manufacturing
of Consumer Products
2%
Environmental Engineering, Waste
Management & Utilities
14%
Chemicals, Livestock, Investments & Others*
* Chemicals Trading & Manufacturing [1%], Livestock Farming [-3%], Investment Income [13%] & Bakery [3%]
8
Review
Of
Major
Operations
9
Review of Major Operations
RM Million
FY 2012
FY 2013
11%
2,100
FLOUR & FEED MILLING, &
GRAINS TRADING
1,800
The increase in revenue for
2013 was due to higher sales volume
and improved selling prices of flour
and feed.
1,500
1,200
900
1,848 2,052
600
2%
122 124
300
0
Revenue
Segment Profit
Segment profit up marginally. Better
performance in grains trading
mitigated the lower margins due to
higher raw material cost &
unfavorable foreign currency
exchange movements.
10
Review of Major Operations
RM Million
450
FY 2012
FY 2013
4%
400
350
Revenue for 2013 increased due to
additional sales of an agency
product in Peninsular Malaysia &
improved sales from the other
existing agency products.
300
250
200
389
404
150
22%
100
20
50
24
0
Revenue
MARKETING, DISTRIBUTION &
MANUFACTURING OF
CONSUMER PRODUCTS
Segment Profit
Higher profit was in line with the
increased revenue and improved
sales of agency products with
better margins.
11
Review of Major Operations
RM Million
350
FY 2012
FY 2013
18%
300
Revenue & profit for 2013
increased due to contribution from
new cinemas opened in 2012 &
2013 and higher income from film
distribution & screen advertising
businesses.
250
200
150
290
342
100
FILM EXHIBITION &
DISTRIBUTION
24%
50
40
49
0
Revenue
Segment Profit
12
Review of Major Operations
RM Million
FY 2012
FY 2013
36%
175
150
125
100
75
155
100
50
30%
25
9.5
ENVIRONMENTAL
ENGINEERING,
WASTE MANAGEMENT &
UTILITIES
Revenue and profit decreased
mainly due to several on-going
environmental engineering projects
being at completion stage, whereby
the revenue contribution had been
progressively recognised in the
previous quarters.
6.6
0
Revenue
Segment Profit
13
Review of Major Operations
RM Million
FY 2012
FY 2013
11%
90
Revenue increased due to higher
project management fees on newly
secured projects & higher rental
income.
75
>100%
60
45
81
Higher profit mainly due to a gain
from sale of an investment property.
90
30
22
15
PROPERTY INVESTMENT &
DEVELOPMENT
50
Profit also derived from progress
billings, project management fees &
rental income.
0
Revenue
Segment Profit
14
Review of Major Operations
RM Million
500
FY 2012
FY 2013
14%
Revenue increased mainly due to:-
450
i. higher revenue in the bakery segment
which was driven by sales increase in all
locations arising from the full operation of
all distribution centres in 2013;
ii. the increase in selling prices, quantities of
day-old-chick and eggs in the Livestock
segment; and
iii. higher dividend income from the Group’s
investment in equities.
400
350
300
250
414
473
200
150
>100%
100
-16
40
50
0
-50
CHEMICALS, LIVESTOCK,
INVESTMENTS & OTHER OPERATIONS
Revenue
Segment Profit/Loss
Profits largely contributed by the gain on
disposal of the Group’s investment in
Tradewinds (M) Berhad & higher dividend
income. Livestock segment recorded lower
losses. Bakery segment reported higher
profits.
15
Key
Achievements
in 2013
16
Key Achievements in 2013
FLOUR & FEED MILLING, & GRAINS TRADING
Completed construction of an additional 150-mt/day flour mill at
its existing flour mill in South Vietnam
Commissioned its 2nd 1,000-mt/day flour mill in Indonesia in
November 2013
17
Key Achievements in 2013
MARKETING & DISTRIBUTION OF CONSUMER
PRODUCTS
Appointed the sole distributor of Snow Brand infant milk powder
in Malaysia
Launched two new products, The Chicken Burger and The
Square Burger under the “Marina” family
Launched new “Massimo” whole wheat buns
18
Key Achievements in 2013
FILM EXHIBITION & DISTRIBUTION
Opening of 2 new cinemas
Bintang Megamall, Miri – 8 screens
City One Mall, Kuching – 10 screens
Total screens operated by GSC is 233
Introduction of Dolby Atmos
100% Digitisation of Projection System
e-Concession
Purchase of cinema tickets and concession via e-Payment.
Available at GSC’s key locations.
Investment of 25% equity interest in Galaxy, a local cinema
chain in Vietnam
19
Key Achievements in 2013
ENVIRONMENTAL ENGINEERING,
WASTE MANAGEMENT & UTILITIES
Successfully commissioned 5 water projects with a total
contract value of RM150 million
Secured new water and sewage projects worth RM300 million
Upgraded the Wangsa Maju Pumping Station from 225,000
m³/day to 300,000 m³/day to improve water supply to 100,000
consumers in KL and Gombak
Awarded the contract for the construction of about 30km of
sewer network in Old Klang Road and PJ South
20
Key Achievements in 2013
PROPERTY INVESTMENT & DEVELOPMENT
Acquired effective 28% equity interest in Southern Marina (SM)
SM signed the SPA for the purchase of 12.5 acres of land in
Puteri Harbour, Nusajaya, Iskandar Malaysia for the proposed
development of a mixed residential-commercial property
project
Received the Development Order for 14 high-end bungalows at
Taman Tanah Aman in Seberang Prai which was soft launched
during CNY 2014
21
5-Year
Financial
Performance
22
5-Year PBT of PPB Group
RM Million
1,800
1,600
1,400
1,200
1,079
917
400
1,057
600
1,129
800
1,732
1,000
200
2009
Note :
2010
2011
2012
2013
Year
PBT for FY2010 excludes the gain of RM841 million from the disposal of the sugarrelated assets. If the profit is included, the PBT would be RM1.970 billion.
23
Capital
Commitments
24
Capital Commitments by Segments
RM172 mil
RM179 mil
CAPITAL
COMMITMENTS
RM440 mil
RM31 mil
RM19 mil
RM21 mil
RM7 mil
RM11 mil
Flour & Feed Milling, & Grains Trading
- 500 mt/day flour mill in Vietnam
- Investment in China associates
- Expansion & upgrading of plant & machineries
Film Exhibition & Distribution
- Opening of 11 new cinemas
- Upgrading of existing cinema equipment
Property Investment & Development
- Investment in associate
- Upgrading of facilities in shopping mall & office building
Bakery
- Acquisition of bakery machinery, support equipment &
sales trucks
Frozen Food Processing
- Processing plant expansion & new factory
Marketing, Dist. & Mftg of Consumer Products
- New warehouse & office buildings
- Upgrading of machinery & equipment
Others
25
Dividend
Record
26
Dividend Record
Dividend
Per Share
Gross
Net
Year
2013
-Interim
-Final*
2012
2011
2010 #
2009 #
Net
Net
Dividend Dividend
Paid/payable Yield
(sen)
(sen)
(RM Million)
8
17
25
20
23
88
73
8
17
25
20
23
88
73
94.840
201.535
296.375
237.100
272.665
1,043.240
865.415
Payout Ratio
(%)
]
]
]
1.6
1.7
1.3
5.1
4.6
]
]
]
Group
Company
(%)
(%)
29.8
28.2
27.8
100.1
53.6
]
] 155.2
]
63.0
28.4
294.1
14.8
*
PPB Board has recommended a final single tier dividend of 17 sen per share for the financial year ended 31
December 2013 payable on 6 June 2014.
#
Including Special Dividends of 65 sen per share in year 2010 and 50 sen per share in year 2009.
27
Share Price
Performance
28
Share Performance
FBM KLCI
17.00
1,900.00
PPB (28.02.14)
RM15.92
16.00
1,850.00
15.00
1,800.00
14.00
1,750.00
13.00
FBM KLCI (28.02.14)
1,835.66
12.00
1,650.00
11.00
10.00
9.00
1,700.00
1,600.00
Jan - Dec 2013
Closing Price (High)
Closing Price (Low)
Closing (31.12.13)
Average Daily Volume
PPB
16.14
12.00
16.14
527,782
FBM KLCI
1,872.52
1,613.33
1,866.96
150,256,078
1,550.00
1,500.00
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB
2013
2014
29
FBM KLCI
PPB Shares - Month End Closing Price (RM)
PPB Shares - Month End Closing Price (RM)
Prospects
for
2014
30
Prospects for 2014
PPB Group businesses is expected to perform well in 2014
based on :Group’s strong core business presence in Malaysia
Expansion in the cinema, flour and bakery segments
Group’s regional businesses expected to grow in line with
the expanded flour milling capacity; sustained by
increasing affluence and domestic consumption in those
markets.
In addition to its operating businesses, the Group’s overall
consolidated financial results in 2014 will be substantially
supported by Wilmar’s business performance.
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32