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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.
Press and Analyst Briefing Unaudited FY10 Results 3 March 2011
Agenda
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Group Financial Highlights
Share Performance Prospects for 2011 Dividend Record
Review of Major Operations
5-Year Financial Performance
3
Group
Financial
Highlights
4
Financial Results
FOR THE YEAR ENDED 31 DEC 2010Continuing Operations
Grains Trading, Flour & Feed Milling Consumer Products Distribution
Film Exhibition & Distribution Waste Management & Utilities
Property Development, Management &
Investment Others
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Financial Results
FOR THE YEAR ENDED 31 DEC2.274 bil 2.054 bil
2010 (RM) 2009 (RM) Change
10.7%
7.3%
22.8%
2.031 bil 1.123 bil
1.893 bil 1.455 bil
PBT*
Operating Expenses Revenue
CONTINUING OPERATIONS
25.2%
88.15 sen 117.77 sen
EPS
1.062 bil
Profit for the Year 1.409 bil 24.6%
0.678 bil 1.211 bil 44%
* Note :-
Share of Wilmar’s Profit
Financial Ratios
2009
ROE Attributable to
Shareholders 14.2 % 11.5%
RM11.20 RM11.88
Net Assets Per Share Attributable to
Shareholders
136.3 sen 158.9 sen
EPS
2010
CONTINUING & DISCONTINUED OPERATIONS
RM1.629 bil 1.901 bil*
Profit for the Year 16.7%
5.7%
16.6%
* Includes gain on sale of the sugar-related assets of RM841 million.
Segmental Information
FOR THE YEAR ENDED 31 DEC 2010
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Grains Trading, Flour & Feed
Milling 52.01%
Waste
Management &
Utilities 4.49%
Film Exhibition 10.42%
Property 1.73%
Others*
16.11%
Total Revenue
Continuing Operations
RM2.274 billion
*Others :-
•Chemicals Trading &
Manufacturing [4.83%]
•Livestock Farming [3.93%]
•Dividends [1.76%]
•Packaging [2.51%]
•Engineering [1.72%]
•Shipping [0.77%]
•Others [0.59%]
Consumer Products
15.24%
Segmental Information
FOR THE YEAR ENDED 31 DEC 2010
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Grains Trading, Flour & Feed
Milling 42.83%
Film Exhibition 12.16%
Waste
Management &
Utilities 1.52%
Others*
28.53%
Total
Segment Profits
Continuing Operations
RM354.9 million
*Others :-
•Investment Income [16.30%]
•Shipping [3.22%]
•Others [9.01%]
Consumer Products
4.44%
Property 10.52%
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Review
Of
Major
Operations
Review of Major Operations
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0.00 200.00 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00
1,152.4 93.2
1,260.7 154.9
FYE 2009 FYE 2010
GRAINS TRADING, FLOUR AND FEED MILLING
Revenue for 2010 increased due to higher flour sales complemented by its mill in Indonesia which commenced operations in October 2009.
Operating profit improved arising from higher sales with better profit margins.
RM MILLION
9.4%
66.2%
Review of Major Operations
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0.00 20.00 40.00 60.00 80.00 100.00 120.00
104.2 4.4
108.7 5.5
FYE 2009 FYE 2010
ENVIRONMENTAL ENGINEERING, WASTE MANAGEMENT & UTILITIES
The revenue and operating profit improved marginally due to better cost management and higher profit margin.
RM MILLION
4.3%
25%
Review of Major Operations
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0 50 100 150 200 250 300
205.7 28.5
252.6 44.0
FYE 2009 FYE 2010
RM MILLION FILM EXHIBITION AND DISTRIBUTION
Revenue for 2010 increased due to contribution from newly opened cinemas
namely, GSC Tropicana (Jun 09), GSC East Coast Mall (Nov 09) and GSC Suria Sabah (May 10) as well as the additional 4 screens in GSC IOI Mall (New Wing).
Operating profit improved due to contribution from new cinemas and the overall improved performance of cinemas driven by the strong films released in the year.
22.8%
54.4%
Review of Major Operations
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0 5 10 15 20 25 30 35 40 45
40.8 16.141.9 38.1
FYE 2009 FYE 2010
PROPERTY INVESTMENT & DEVELOPMENT Revenue for 2010 increased marginally due to higher contribution from Cheras Leisure Mall.
Operating profit improved due to the creation of a new F&B area called “Cravings Lane” and upward revision of tenancy rates in Cheras Leisure Mall.
Gains from disposal of properties
totalling RM22.3 million also contributed to the significant jump in the FY10 profit.
RM MILLION
>100%
2.7%
Review of Major Operations
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0 50 100 150 200 250 300 350 400
Revenue Operating Profit
339.9 13.4
369.5 16.0
FYE 2009 FYE 2010
Consumer Products Distribution
Revenue and operating profit for 2010 improved due to growth of its in-house products mainly from the frozen food business where sales had doubled from RM8.36 million to RM16.64 million.
RM MILLION
19.4%
8.7%
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5-Year
Financial
Performance
5-Year PBT of PPB Group
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1000 200300 400500 600700 800900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000
2006 2007 2008 2009 2010
840 763 1,401 1,732
1, 12 1
RM Million
Year
* Note : PBT for year 2010 excludes the gain of RM841 million from the disposal of the sugar- related assets. If the profit is included, the PBT would be RM1.962 billion
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Dividend
Record
Dividend Record
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Dividend Net Net
Payout Ratio Per Share Dividend Dividend
Gross Net Paid/payable Yield Group Company
Year (sen) (sen) (RM Million) (%) (%) (%)
2010 -Interim -Special
-Final*
5 65 18 88
5 65 18 88
59.275 770.575 213.390 1,043.240
]
] 5.1 ]
]
] 55.0 ]
] ]
67 .0
]
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 recommended a final single tier dividend of 18 sen per share for the financial year ended 31 December 2010 payable on 10 June 2011.
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Share
Performance
Share Performance
2010 2011
1,250.00 1,280.00 1,310.00 1,340.00 1,370.00 1,400.00 1,430.00 1,460.00 1,490.00 1,520.00 1,550.00
15.00 15.50 16.00 16.50 17.00 17.50 18.00 18.50 19.00 19.50
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb
PPB Share Price (RM) FTSE Bursa KLCI
PPB Closing price FTSE Bursa KLCI
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Prospects
for
2011
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Prospects for 2011
Rising commodity prices and fuel costs, coupled with fluctuating currency exchange rates are the main
challenging factors which are expected to impact the Group’s operating results for 2011.
The outlook for consumer demand in Malaysia and the
Asian region remains positive. The Group is confident
that the performance for 2011 will be satisfactory.
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Questions
&
Answers
