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 FY2011 Results 6 March 2012
Agenda
Group Financial Highlights
Share Performance Prospects for 2012 Dividend Record
Review of Major Operations
5-Year Financial Performance
Group
Financial
Highlights
Financial Results
FOR THE YEAR ENDED 31 DEC 2011PPB Group Operations
Grains Trading, Flour & Feed Milling
Marketing , Distribution & Manufacturing of Consumer Products
Film Exhibition & Distribution Waste Management & Utilities
Property Investment & Development Others
Financial Results
FOR THE YEAR ENDED 31 DEC(All figures in RM) 2011 2010
#CHANGE
Revenue
2.711 bil 2.274 bil 19%
Operating Expenses
2.566 bil 2.031 bil 26%
PBT*
1.057 bil 1.131 bil 7%
Profit for the Year
1.013 bil 1.070 bil 5%
EPS
82.70 sen 88.25 sen 6%
*Share of Wilmar’s Profit
0.790 bil 0.678 bil 17%
# Financial results of continuing operations.
Financial Ratios
FOR THE YEAR ENDED 31 DEC2011 2010 CHANGE
Profit for the Year (RM)
1.013 bil 1.909 bil* 47%
EPS
82.7 sen 159.0 sen 48%
ROE Attributable to
Owners of the Parent
7.0% 14.2% 51%
Net Assets Per Share Attributable
to Owners of the Parent
RM11.86 RM11.20 6%
* Includes gain on sale of the sugar-related assets of RM841 million.
Segmental Information
FOR THE YEAR ENDED 31 DEC 2011*Others :-
Chemicals Trading & Manufacturing [4.37%], Livestock Farming [3.80%], Investment Income [0.81%], Packaging [2.13%], Shipping [0.38%] & Others [1.88%]
Grains Trading, Flour & Feed Milling 57.01%
Marketing, Distribution & Manufacturing of Consumer Products
13.08%
Waste Management & Utilities 5.38%
Film Exhibition & Distribution 9.87%
Property Investment & Development 1.29%
Others*
13.37%
TOTAL
REVENUE
RM2.711
bilSegmental Information
FOR THE YEAR ENDED 31 DEC 2011*Others :-
Chemicals Trading & Manufacturing [0.51%], Livestock Farming [5.52%], Investment Income [4.56%], Packaging [0.18%], Shipping [0.58%] & Others [-5.97%]
TOTAL
SEGMENT PROFITS RM228 mil
Grains Trading, Flour & Feed Milling 58.82%
Marketing, Distribution & Manufacturing of Consumer Products
8.45%
Film Exhibition & Distribution 16.31%
Waste Management & Utilities 4.26%
Property Investment & Development 6.78%
Others*
5.38% Others*
Review
Of
Major
Operations
Review of Major Operations
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800
Revenue PBT
1,260.7 154.9
1,636.2 135.0
FY 2010 FY 2011
GRAINS TRADING, FLOUR AND FEED MILLING
The significant increase in revenue for 2011 is due to higher
grains trading volume and flour sales.
Operating profit was lower due to lower margins as a result of higher raw material costs.
RM MILLION
30%
13%
Review of Major Operations
0 50 100 150 200 250 300 350 400
Revenue PBT
369.5 16.0
375.3 19.4
FY 2010
FY 2011 MARKETING, DISTRIBUTION &
MANUFACTURING OF CONSUMER PRODUCTS
Revenue and operating profit for 2011 improved due to growth in sales and better profit margins.
RM MILLION
21%
2%
Review of Major Operations
0 50 100 150 200 250 300
Revenue PBT
252.6 44.0
283.3 37.4
FY 2010 FY 2011
RM MILLION FILM EXHIBITION AND DISTRIBUTION
Revenue for 2011 increased due to contribution from newly opened GSC AEON Melaka, stronger performance of existing cinemas and higher revenue from film distribution.
Operating profit declined due to higher film rental rates and staff costs for the cinema operations, film acquisition costs.
12%
15%
Review of Major Operations
- 20 40 60 80 100 120 140 160
Revenue PBT
108.7 5.5
154.4 9.8
FY 2010
FY 2011 ENVIRONMENTAL ENGINEERING,
WASTE MANAGEMENT &
UTILITIES
Revenue and PBT improved due to recognition of revenue from major projects secured during
FY2011.
RM MILLION 42%
79%
Review of Major Operations
0 5 10 15 20 25 30 35 40 45
Revenue PBT
41.9 38.1
37.1 15.6
FY 2010 FY 2011
PROPERTY INVESTMENT &
DEVELOPMENT
Revenue for 2011 reduced due to lower property sales as there were no new projects launched in FY2011.
PBT was lower due to a gain on disposal of investment properties of RM22 million in FY2010.
RM MILLION
59%
12%
Review of Major Operations
0 50 100 150 200 250 300 350 400
Revenue PBT
390.6 103.2
383.7 12.3
FY 2010 FY 2011
CHEMICALS, LIVESTOCK, INVESTMENTS &
OTHER OPERATIONS
Revenue was marginally lower due to the loss in revenue from an
engineering services subsidiary that was disposed of in FY2010 despite higher revenue contribution from livestock farming.
The lower PBT were mainly due to a fair value adjustment in investments in equities, lower profit from shipping division and loss of profit contribution from the disposed engineering services subsidiary.
RM MILLION
88%
2%
5-Year
Financial
Performance
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
2007 2008 2009 2010 2011
763 1,401 1,732 1,129
1,0 57
5-Year PBT of PPB Group
RM Million
Year
* Note : 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
Dividend
Record
Dividend Record
Dividend Net Net
Payout Ratio Per Share Dividend Dividend
Gross Net Paid/payable Yield Group Company
Year (sen) (sen) (RM Million) (%) (%) (%)
2011 -Interim
-Final*
10 13 23
10 13 23
118.550 154.115 272.665
]
] 1.3 ]
]
] 27.8 ]
] ]
28 .4
]
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 recommended a final single tier dividend of 13 sen per share for the financial year ended 31 December 2011 payable on 15 June 2012.
Share
Performance
2011
1,380.00 1,410.00 1,440.00 1,470.00 1,500.00 1,530.00 1,560.00 1,590.00
16.00 16.20 16.40 16.60 16.80 17.00 17.20 17.40 17.60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
PPB Share -Month End Closing Price (RM) FBM KLCI
PPB Share - Month End Closing Price (RM) FBM KLCI
FBM KLCI (29.02.12) → 1,569.65
Jan - Dec 11 PPB FBM KLCI
Closing Price (High) RM17.96 1,594.74 Closing Price (Low) RM15.76 1,331.80 Closing (31.12.11) RM17.16 1,530.73
PPB (29.02.12)
→RM17.20
Share Performance
Prospects
for
2012
Prospects for 2012
The global economy in 2012 started off on an uncertain footing, carrying over the slowing
consumer demand and the unresolved Eurozone problems of 2011. The weakened global market coupled with rising fuel costs, volatile commodity markets and foreign exchange rates will present challenges to the Group.
The Group’s management are actively monitoring
such challenges in order to implement appropriate
measures to facilitate growth and continuation of the
Group’s businesses.
Prospects for 2012
The Group’s operations are located in the ASEAN countries and China, and it is anticipated that the domestic consumption in these countries would
remain robust in 2012. The Group is optimistic that
PPB Group would be able to generate a satisfactory
set of results in 2012.
Questions
&
Answers
