PPB GROUP BERHAD
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.
Analyst & Press Briefing Unaudited 1H10 Results 2 September 2010
Agenda
2
1. Group Financial Highlights
6. Share Information 5. Prospects for 2010 4. Dividend Record
2. Review of Major Operations
3. 5-Year Financial Performance
Group
Financial
Highlights
4
Financial Results
FOR THE PERIOD ENDED 30 JUNE 2010Continuing Operations
Grains Trading, Flour & Feed Milling Consumer Products Distribution
Film Exhibition & Distribution Waste Management & Utilities
Property Development, Management &
Investment Others
Financial Results
FOR THE PERIOD ENDED 30 JUNE1.085 bil 1.039 bil
2010 (RM) 2009 (RM) Change
4.4%
2.0%
0.4%
981.3 mil 628.5 mil
961.8 mil 626.1 mil
PBT*
Operating Expenses Revenue
CONTINUING OPERATIONS
50.98 sen 50.87 sen 0.2%
EPS
608.3 mil
Profit for the Period 610.3 mil 0.3%
12.9%
452.3 mil 519.5 mil
* Note :-
Share of Wilmar’s Profit
Financial Ratios
2009
ROE Attributable to
Shareholders 10.2% 5.0%
RM11.93 RM11.35
Net Assets Per Share Attributable to
Shareholders
56.5 sen 121.7 sen
EPS
2010
CONTINUING & DISCONTINUED OPERATIONS
RM676.5 mil RM1.447 bil*
Profit for the Period 113.9%
5.1%
115.4%
* Includes gain on sale of the sugar-related assets of RM838 million.
5.2%
Segmental Information
FOR THE PERIOD ENDED 30 JUNE 2010
Grains Trading, Flour & Feed
Milling 49.94%
Waste
Management &
Utilities 2.88%
Film Exhibition 11.06%
Property 2.02%
Others*
18.71%
Total Revenue
Continuing Operations
RM1.085 billion
*Others :-
• Chemicals Trading &
Manufacturing [5.28%]
• Livestock Farming [3.72%]
• Dividends [3.06%]
• Packaging [2.53%]
• Engineering [2.66%]
• Shipping [0.84%]
• Others [0.62%]
Consumer Products
15.39%
Segmental Information
FOR THE PERIOD ENDED 30 JUNE 2010
8
Grains Trading, Flour & Feed
Milling 30.34%
Film Exhibition 12.29%
Property 5.25%
Others*
48.38%
Total
Segment Profits
Continuing Operations
RM193 million
*Others :-
• Investment Income [43.17%]
• Engineering [3.30%]
• Shipping [2.69%]
• Others [-0.78%]
Consumer Products
3.74%
Review
Of
Major
Operations
Review of Major Operations
10
GRAINS TRADING, FLOUR AND FEED MILLING
Although flour sales increased due to the contribution from the new flourmill in Cilegon, Indonesia, selling price was relatively lower compared to 1H09. With the lower sales volume of animal
feed, segment revenue was marginally lower.
Operating profit increased 3-folds due to lower raw material prices which
contributed to higher profit margins.
RM MILLION 1.0%
196%
Review of Major Operations
CONSUMER PRODUCTS DISTRIBUTION Revenue and Operating Profit improved as all major agency products performed exceptionally well, ahead of the
previous corresponding period sales.
The major in-house products, edible oils, are under the government’s
subsidy scheme and sales are limited to the same quota given for the past 2
years.
RM MILLION
11%
10%
Review of Major Operations
12
FILM EXHIBITION AND DISTRIBUTION
Revenue for 1H10 increased due to the opening of 3 new cinemas, namely, GSC Suria Sabah, GSC Tropicana and GSC East Coast Mall and additional screens at GSC IOI in year 2009 as well as higher admissions at existing cinemas.
Operating profit improved due to higher admissions from the strong release of films and the pick up in performance of newly opened cinemas.
36%
93%
Review of Major Operations
ENVIRONMENTAL ENGINEERING, WASTE MANAGEMENT & UTILITIES
RM MILLION
45%
53%
Revenue and Operating Profit for 1H10 were lower as most of the
carried over projects from 2009 were near completion stage in 1H10.
Contribution from the newly secured projects will only be recognised in the 2H10.
Review of Major Operations
14
PROPERTY INVESTMENT AND DEVELOPMENT
Revenue for 1H10 improved due to sale of more residential units under the
Taman Mentari project in Bedong, Kedah.
Operating profit reduced marginally as there were no new projects launched during the year. The 2nd Phase of 13 units bungalows in Bukit Segar, Cheras will be launched in the 4Q10.
RM MILLION
4%
7%
5-Year
Financial
Performance
5-Year PBT of PPB Group
16
RM Million
Year
N1
N1 – Includes gain on sale of sugar-related assets of RM838 million.
Dividend
Record
Dividend Record
18
Dividend Net Net
Payout Ratio Per Share Dividend Dividend
Gross Net Paid/payable Yield Group Company
Year (sen) (sen) (RM Million) (%) (%) (%)
2010 Interim Special
5 65 70
5 65 70
59,275 770,575 829,850
4.38 57.5 59.7
2009 73 73 865.415 4.6 53.6 14.8
2008 85 68.88 816.572 7.4 63.5 116.0
2007 30 22.15 262.588 2.0 41.9 63.7
2006 20 14.55 172.490 2.7 30.8 103.6
*The Board declared a special single tier dividend of 65 sen per share and an interim single tier dividend of 5 sen per share for the financial year 2010 payable on 28 September 2010.
Prospects
2010 for
20
Prospects for 2010
Golden Screen Cinemas plans to roll out more digital projection system with the demand for more 3D movies and continue to open new cinemas in key locations.
The recent increase in commodity prices and
uncertainties in currency exchange rates would have an impact in grains trading, flour and feed milling division.
Nevertheless, FFM Group had put in measures to manage these factors.
The Group plans to launch its bakery business in Pulau
Indah which is synergistic to its existing businesses.
Prospects for 2010
The Property division will continue explore new land bank at strategic locations and will continue to review and
strategise to ensure business growth and profitability.
Profit for the financial year 2010 will be higher than that of the previous year with the gain from the sale of the sugar-related assets.
The Malaysian Retailer-Chains Association (MRCA)
expects the local retail market to grow 5% to 8% in 2010
compared with a contraction of 2% to 3% in 2009. The
Consumer Products Distribution Division is confident to
perform well with the increased trade activities from the
forthcoming Hari Raya celebration.
22
Share
Information
1,200.00 1,230.00 1,260.00 1,290.00 1,320.00 1,350.00 1,380.00 1,410.00 1,440.00
15.00 15.50 16.00 16.50 17.00 17.50 18.00 18.50
Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug
PPB Share Price (RM) FTSE Bursa KLCI
PPB FTSE Bursa KLCI
PPB (30.8.10) →RM17.08 FTSE Bursa KLCI
(30.8.10) →1,422.49
Share Performance
2009 2010
24
Questions
&
