PRESS AND ANALYST BRIEFING 1H2014 Results 3 September 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 1H2014 Developments in 2H2014 5-Year Financial Performance Capital Commitments Dividend Record Share Price Performance Prospects for 2014 2 Group Financial Highlights 3 Financial Results FOR THE 6 MONTHS ENDED 30 JUNE 2014 (Figures in RM) 1H2014 1H2013 CHANGE Revenue 1.84 bil 1.58 bil 16% Operating Expenses 1.71 bil 1.51 bil 13% Share of Wilmar’s Profit 196 mil 300 mil 35% PBT 366 mil 455 mil 20% 326 mil 26.20 sen 427 mil 35.08 sen 24% 25% Profit for the Period EPS 4 Financial Ratios FOR THE 6 MONTHS ENDED 30 JUNE 2014 EPS ROE Attributable to Owners of the Parent Net Assets Per Share Attributable to Owners of the Parent 1H2014 1H2013 26.20 sen 35.08 sen 2.0% 2.8% RM13.04 RM12.51 5 Segmental InformationFOR FOR THE 6 MONTHS ENDED 30 JUNE Segmental Information THE 6 MONTHS ENDED 30 JUNE 2014 2013 TOTAL REVENUE RM 1.84 bil 61% Flour & Feed Milling, & Grains Trading 12% Marketing, Distribution & Manufacturing of Consumer Products 10% Film Exhibition & Distribution 3% Environmental Engineering, Waste Management & Utilities 3% Property Investment & Development 11% Chemicals, Livestock, Investments & Others* * Chemicals Trading & Manufacturing [3%], Livestock Farming [3%], Bakery [3%], Frozen Food [1%] & Others [1%] 6 Segmental Information FOR THE 6 MONTHS ENDED 30 JUNE 2014 TOTAL SEGMENT PROFITS RM 167mil 52% Flour & Feed Milling, & Grains Trading 19% Film Exhibition & Distribution 10% Property Investment & Development 9% Marketing, Distribution & Manufacturing of Consumer Products 1% Environmental Engineering, Waste Management & Utilities 9% Chemicals, Livestock, Investments & Others* * Livestock Farming [5%] & Investment Income [4%] 7 Review Of Major Operations 8 Review of Major Operations RM Million 1H2013 1H2014 17% 1200 1100 Revenue increased in 1H2014 mainly due to:- Higher sales volume of flour in Indonesia, Vietnam & Malaysia - Increased animal feed sales volume & improved selling prices in Malaysia 1000 900 800 700 600 500 993 1,162 400 27% 300 200 69 87 100 0 Revenue FLOUR & FEED MILLING, & GRAINS TRADING Segment Profits Segment profit increased in 1H2014 mainly due to:- Higher sales volume of feed with improved profit margins - Higher sales volume of flour 9 Review of Major Operations RM Million 240 1H2013 1H2014 16% 220 200 Revenue increased in 1H2014 mainly due to:- Enlarged distributorship of an agency product since August 2013 - Improved sales from other existing agency products 180 160 140 120 100 193 224 80 40% 60 40 10.8 15.2 20 0 Revenue MARKETING, DISTRIBUTION & MANUFACTURING OF CONSUMER PRODUCTS Segment Profits Segment profit increased in 1H2014 mainly due to:- In line with revenue growth - Improved sales of agency products with better margins 10 Review of Major Operations RM Million 200 1H2013 1H2014 8% 180 160 140 120 100 172 185 80 17% 60 27 40 32 FILM EXHIBITION & DISTRIBUTION Revenue increased in 1H2014 mainly due to:- Improved cinema collections from blockbuster movies - Higher contribution from concessions & screen advertising income - Additional revenue from new cinemas opened in 2013 Segment profit in 1H2014 increased mainly due to increase in revenue. 20 0 Revenue Segment Profits 11 Review of Major Operations RM Million 1H2013 1H2014 17% 55 50 45 Revenue increased in 1H2014 due to more on-going projects. 40 35 30 ENVIRONMENTAL ENGINEERING, WASTE MANAGEMENT & UTILITIES 46 53 25 20 66% 15 10 2.9 1.0 5 Segment profit decreased in 1H2014 due to new projects at design approval stage and yet to contribute significantly. In 1H2013, higher profits from completed projects. 0 Revenue Segment Profits 12 Review of Major Operations RM Million 1H2013 1H2014 51% 50 45 Revenue increased in 1H2014 due to:- Revenue recognition upon delivery of vacant possession of bungalows in Bukit Segar - Higher rental rates from renewal of tenancies 40 35 30 25 20 17% 32 PROPERTY INVESTMENT & DEVELOPMENT 48 15 10 14 17 5 Segment profit in 1H2014 increased due to:- Higher progress billings - Increase in rental income 0 Revenue Segment Profits 13 Review of Major Operations RM Million 260 1H2013 1H2014 12% 240 220 Combined segment revenue for 1H2014 increased mainly due to:- Higher revenue by livestock farming arising from increased sales volume & higher selling prices of day-old-chicks & eggs - Most of the other segments reported better performance 200 180 160 140 120 219 246 100 80 8% 60 40 16 20 15 0 Revenue CHEMICALS, LIVESTOCK, INVESTMENTS & OTHER OPERATIONS Segment Profits Combined segment profit for 1H2014 decreased due to:- There was a one-time gain of RM16 million on disposal of Tradewinds shares in March 2013 14 Key Achievements in 1H2014 15 Key Achievements in 1H2014 FILM EXHIBITION AND DISTRIBUTION GSC commenced renovations in GSC Mid Valley to increase the number of screens from 18 to 21. GSC extended its second Dolby Atmos hall at GSC KL Pavilion on 12 June 2014. 16 Key Achievements in 1H2014 ENVIRONMENTAL ENGINEERING, WASTE MANAGEMENT & UTILITIES Handed over 4 sewage treatment plants under Greater KL scheme. Secured subcontract for mechanical and electrical works for Project Air Mentah RAPID in Pengerang, Johor. Commissioned the Ngoi-ngoi Water Treatment Plant in mid-April 2014, augmenting drinking water supply in Negeri Sembilan by 150,000m3/day Accumulated construction order book close to RM500 million. 17 Key Achievements in 1H2014 PROPERTY INVESTMENT & DEVELOPMENT Following the launch of the 14 units of luxury bungalows at Taman Tanah Aman in Seberang Prai in February 2014, the project has achieved 50% sales to-date. Masera Bukit Segar comprising 13 units of luxury bungalows have been fully sold and 9 units have been handed over to buyers in March 2014. The project achieved a GDV of RM104 million. 18 Key Achievements in 1H2014 BAKERY The Bakery Division commenced commercial production of its new production line of 6,000 loaves-per-hour bread line end-May 2014. Launch of “Chiffon-in-a-Cup” cake range. 19 Developments in 2H2014 20 Developments in 2H2014 FLOUR & FEED MILLING AND GRAINS TRADING In July 2014, Johor Bahru Flour Mill S/B completed the acquisition of a neighbouring piece of land measuring 2.3 hectares in Pasir Gudang, Johor for expansion of its feed milling activities. The construction of a new 500-mt per day flour mill in northern Vietnam by VFM-Wilmar is expected to be completed by 4Q2014. 21 Developments in 2H2014 FILM EXHIBITION AND DISTRIBUTION GSC opened its 10-screen cinema at Palm Mall Seremban on 23 July 2014. GSC will be opening 3 new cinemas in Klang Parade (8 screens), NU Sentral, KL (11 screens) and Quill City Mall, KL (10 screens) in 4Q2014. There are another 9 new cinema projects in the pipeline to be opened in the next 2 years. 22 Developments in 2H2014 PROPERTY INVESTMENT AND DEVELOPMENT Southern Marina Development S/B in which PPB has 28% effective interest is targeting to launch the 1st phase of residential units in its integrated waterfront development in Puteri Harbour, Iskandar Malaysia in 4Q2014. 23 5-Year Financial Performance 24 5-Year PBT of PPB Group RM Million 1,200 1,050 366 1,063 917 600 1,057 750 1,129 900 450 300 150 2010 Note : 2011 2012 2013 Jan-Jun 2014 Year 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. 25 Capital Commitments 26 Capital Commitments AS AT 30 JUNE 2014 (All figures in RM’Million) 2014 As reported previously (6 March 2014) 440 53 493 (151) 342 Additions/ Project Revision Amount Spent Balance to be Spent 27 Capital Commitments AS AT 30 JUNE 2014 RM188 mil RM103 mil CAPITAL COMMITMENTS RM 342 mil RM20 mil RM10 mil RM6 mil RM6 mil RM9 mil Film Exhibition & Distribution - Opening of 12 new cinemas - Upgrading of existing cinema equipment Flour & Feed Milling, & Grains Trading - 500 mt/day flour mill in Vietnam - Investment in China associates - Expansion & upgrading of plant & machinery Frozen Food Processing - Processing plant expansion Bakery - Acquisition of bakery machinery, support equipment & sales vans Marketing, Dist. & Mftg of Consumer Products - New warehouse & office buildings - Upgrading of machinery & equipment Property Investment & Development - Upgrading of facilities in shopping mall & office building Others 28 Dividend Record 29 DividendRecord Record Dividend Dividend Per Share Gross Net Net Dividend Paid/payable Net Dividend Yield Group Company (RM Million) (%) (%) (%) Payout Ratio Year (sen) (sen) 2014 Interim# 7 7 83 0.5 26.7 44.4 2013 25 25 296 1.6 30.1 155.0 2012 20 20 237 1.7 28.1 62.9 2011 23 23 273 1.3 28.5 2010* 88 88 1,043 5.1 27.9 100.0 # The 293.8 interim single tier dividend of 7 sen per share is payable on 26 September 2014. * Includes Special Dividend of 65 sen per share in 2010. 30 Share Price Performance 31 Share Price Performance 17.00 FBM KLCI FBM KLCI (29.08.14) 1,866.11 1,900.00 16.50 1,880.00 16.00 1,860.00 15.50 1,840.00 15.00 1,820.00 14.50 1,800.00 PPB (29.08.14) 14.00 RM14.78 13.50 13.00 12.50 12.00 1,780.00 1,760.00 Jan - Jun 2014 Closing Price (High) Closing Price (Low) Closing (30.06.14) Average Daily Volume PPB 16.68 14.76 15.14 434,765 1,740.00 FBM KLCI 1,892.33 1,778.83 1,882.71 129,823,712 1,720.00 1,700.00 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 2013 2014 FBM KLCI PPB Shares - Month End Closing Price (RM) PPB Shares - Month End Closing Price (RM) Prospects for 2014 33 Prospects for 2014 PPB Group’s flour and feed milling, consumer products, film exhibition and bakery businesses are anticipated to benefit from the robust domestic consumption for the rest of the year. Several environmental engineering contracts which are scheduled to progress into the construction stage, coupled with the sales of bungalow units in Seberang Prai and Cheras will contribute positively to Group results. For 2014, the Group’s core businesses are expected to perform well; whilst its overall consolidated financial results will continue to be contingent on Wilmar, which expects better performance in the second half of 2014. 34 35