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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.
Analyst & Press Briefing Unaudited 1H11 Results 26 August 2011
Agenda
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1. Group Financial Highlights
6. Prospects for 2011 5. Share Information 4. Dividend Record
2. Review of Major Operations
3. 5-Year Financial Performance
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Group
Financial
Highlights
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PPB Group Operations
PPB Group Operations
Grains Trading, Flour & Feed Milling
Marketing, Distribution & Manufacturing of Consumer Products
Film Exhibition & Distribution Waste Management & Utilities
Property Investment & Development Others
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Financial Results
FOR THE 6 MONTHS ENDED 30 JUNE1.256 bil 1.085 bil
2011 (RM) 2010# (RM) Change
15.8%
18.8%
8.0%
1.166 bil 578.1 mil
981.3 mil 628.5 mil
PBT
Operating Expenses Revenue
10.4%
45.69 sen 50.98 sen
EPS
560.4 mil
Profit for the Period 608.3 mil 7.9%
432.2 mil 452.3 mil 4.4%
Share of Wilmar’s Profit
# Financial results of continuing operations.
2010
ROE Attributable to
Shareholders 4.0 % 10.2%
RM11.41 RM11.93
Net Assets Per Share Attributable to
Shareholders
121.7 sen 45.69 sen
EPS
2011
RM1.447 bil*
Profit for the Period 61.3%
4.4%
62.5%
* Includes gain on sale of the sugar-related assets of RM838 million.
560.4 mil
Financial Ratios
FOR THE 6 MONTHS ENDED 30 JUNE6
Segmental Information
FOR THE 6 MONTHS ENDED 30 JUNE 2011
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Grains Trading, Flour & Feed
Milling 54.74%
Waste
Management &
Utilities 5.44%
Film Exhibition 10.24%
Property 1.37%
Others*
14.35%
Total Revenue RM1.256 billion
*Others :-
•Chemicals Trading &
Manufacturing [5.06%]
•Livestock Farming [3.75%]
•Investment Income [1.40%]
•Packaging [2.27%]
•Food Processing [0.97%]
•Shipping [0.40%]
•Others [0.50%]
Consumer Products
13.86%
Segmental Information
FOR THE 6 MONTHS ENDED 30 JUNE 2011
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Grains Trading, Flour & Feed
Milling 48.48%
Film Exhibition 17.00%
Property 6.45%
Others*
16.24%
Total
Segment Profits RM126 million
*Others :-
•Livestock Farming [3.32%]
•Investment Income [12.32%]
•Others [0.6%]
Consumer Products
7.09%
Waste Management
& Utilities 4.74%
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Review
Of
Major
Operations
Review of Major Operations
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0 100 200 300 400 500 600 700 800
Revenue Segment Profit 577.8
58.4 731.4
61.0 1H10 1H11
GRAINS TRADING, FLOUR AND FEED MILLING
The better revenue and operating profit were due to higher sales of flour in Indonesia and Vietnam as well as
increased grains trading volume.
RM MILLION
27%
4%
Review of Major Operations
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0 20 40 60 80 100 120 140 160 180 200
Revenue Segment Profit 178.1
7.2 185.3
8.9 1H10 1H11
CONSUMER PRODUCTS DISTRIBUTION Revenue and operating profit
improved due to higher contribution from agency products arising from major
promotions for Clorox, Green Spot and Orang Kampong.
RM MILLION
24%
4%
Review of Major Operations
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0 20 40 60 80 100 120 140
Revenue Segment Profit 127.9
23.7 136.8
21.4 1H10 1H11
RM MILLION
FILM EXHIBITION AND DISTRIBUTION
Revenue for 1H11 increased due to the opening of GSC Suria Sabah, GSC Aeon
Melaka and an additional screen at GSC IOI.
Operating profit decreased due to a weak 1Q11 but stronger titles released in 2011 such as “Fast 5”, “Kung Fu Panda 2” and
“Pirates of the Caribbean” managed to offset part of the drop in profits in 1Q11.
7%
10%
Review of Major Operations
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0 10 20 30 40 50 60 70 80
Revenue Segment Profit
33.4 0.3
72.7
6.0 1H10 1H11
ENVIRONMENTAL ENGINEERING, WASTE MANAGEMENT & UTILITIES
RM MILLION
>100%
The higher revenue and operating profit for 1H11 were mainly
contributed by the following projects :-
Variation Order Works for Putrajaya Sewage Treatment Plant
Ngoi-Ngoi Water Treatment Plant in Negeri Sembilan
Batu Kitang Water Treatment Plant in Kuching, Sarawak
>100%
Review of Major Operations
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0 5 10 15 20 25 30 35
Revenue Segment Profit 23.4
32.4
18.3
8.1
1H10 1H11
PROPERTY INVESTMENT AND DEVELOPMENT
Revenue and operating profit for 1H11 reduced substantially as there were lower property sales during the period under review.
There was a one-off gain of RM22.3 million from sale of investment property in 2010.
RM MILLION
75%
22%
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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
2007 2008 2009 2010 Jan - June 2011
763 1,401 1,733 *1,121
578
RM Million
Year
* Excludes gain on sale of sugar-related assets.
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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) (%) (%) (%)
2011
Interim *10 10 118.550 0.6 21.9 14.6
2010 88 88 1,043.240 5.1 100.1 294.1
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
*The Board declared an interim single tier dividend of 10 sen per share for the financial year ending 31 December 2011 payable on 28 September 2011.
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Share
Information
2010 2011
1,450.00 1,470.00 1,490.00 1,510.00 1,530.00 1,550.00 1,570.00 1,590.00
16.00 16.50 17.00 17.50 18.00 18.50 19.00 19.50
Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug
PPB Share Price (RM) FTSE Bursa KLCI
PPB FTSE Bursa KLCI
Jan - June 11 PPB FTSE Bursa KLCI Closing Price (High) RM17.96 1,579.07 Closing Price (Low) RM16.30 1,484.14 Closing (30.06.11) RM17.22 1,579.07
PPB (15.08.11) →RM17.06 FTSE Bursa KLCI
(15.08.11) → 1,499.74
Share Performance
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Prospects
2011 for
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Prospects for 2011
Animal Feed business is expected to be challenging as a result of overcapacity in the commercial feed sector.
Volatile commodity prices, rising fuel costs coupled with fluctuating currency exchange rates are the main
challenging factors which would affect PPB Group results for financial year 2011.
Intense competition from major flour millers is expected in Vietnam, especially after the global wheat price
reduction at the end of 2Q11.
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Prospects for 2011
Golden Screen Cinemas plans to roll out another 15
digital projection systems to capitalise on the 3D movies released and will continue to open new cinemas in key locations.
Consumer Products Distribution division is expected to perform well in 3Q11 due to increased trade activities during the Hari Raya celebration.
The Property division is expected to launch its final phase of Masera with 13 units of exclusive bungalows in 4Q11.
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Prospects for 2011
The outlook for consumer demand in Malaysia and the Asian region remains encouraging and PPB Group is optimistic that the performance for 2011 will be
satisfactory.
Environmental Engineering, Waste Management and Utilities Division successfully secured 3 projects with a combined contract value of RM120 million namely, the
Intake Plant and Pump Station at Bertam, Durian Tunggal, Melaka; the Semangar Water Treatment Plant in Kota
Tinggi, Johor and the Project Bekalan Air Luar Bandar, Wilayah Serian, Samarahan, Sarawak
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