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 1H09 Results 26 August 2009
Agenda
1. Group Financial Highlights
6. Share Information 5. Prospects for 2009 4. Dividend Record
2. Review of Major Operations
3. 5-Year Financial Performance
Group
Financial
Highlights
* Includes 6-month share of Wilmar results amounting to RM519 million (2008 : RM473 million).
Financial Results
for the period ended 30 June1.606 bil 1.651 bil
2009 (RM) 2008 (RM) Change
3%
3%
8%
7%
Profit Attributable to Shareholders
1.491 bil 713.9 mil
669.4 mil 56.46 sen
1.441 bil 775.1 mil 716.2 mil 60.42 sen
EPS PBT*
Operating Expenses Revenue
7%
Financial Ratios
30 June 2008
ROE Attributable
to Shareholders 5.0% 6.3%
RM11.35 RM10.32
Net Assets Per
Share Attributable to Shareholders
60.42 sen 56.46 sen
EPS
30 June 2009
30 June 2009 31 Dec 2008
Segmental Information
for the period ended 30 June 2009
Sugar & Cane 36.38%
Grains Trading, Flour & Feed
Milling 34.63%
Waste
Management &
Utilities 3.59%
Film Exhibition 5.57%
Property 1.30%
Others*
18.53%
Total Revenue RM1.606 billion
*Others :-
•Chemicals Trading &
Manufacturing
•Livestock Farming
•Shipping
•Consumer Products
•Packaging
•Others
Segmental Information
for the period ended 30 June 2009
Sugar & Cane 60.15%
Grains Trading, Flour & Feed
Milling 14.31%
Waste
Management &
Utilities 0.42%
Film Exhibition 8.94%
Property 6.15%
Others 10.03%
Total
Operating Profit RM137 million
*Others :-
• Chemicals Trading &
Manufacturing
• Livestock Farming
• Shipping
• Consumer Products
• Packaging
• Others
Review
Of
Major
Operations
Review of Major Operations
SUGAR & CANE OPERATIONS
Revenue improved by 28.3%.
Overall sales volume increased by 2.4%
from 333,230 mt to 341,217 mt with domestic sales up by 7.1% and export sales down by 32%.
Operating Profit is maintained.
RM MILLION
28.3%
17.6%
Review of Major Operations
GRAINS TRADING, FLOUR AND FEED MILLING
Revenue for 1H09 was affected by :-
•lower consumption of flour and feed and competition from imported cheaper and lower quality flour.
•Finished products ie. flour and feed prices fell faster than raw material prices.
As a result, operating profit was lower at RM19.7 million.
RM MILLION
13.2%
80.7%
Review of Major Operations
0 10 20 30 40 50 60 70 80
Revenue Operating Profit 72.2
1 60.5
0.58 1H08 1H09
ENVIRONMENTAL ENGINEERING, WASTE MANAGEMENT & UTILITIES
Revenue and operating profit for 1H09 were lower due to near completion of current projects for which revenue is yet to be recognised in the accounts.
RM MILLION
16.2%
42%
Review of Major Operations
0 10 20 30 40 50 60 70 80 90 100
Revenue Operating Profit 88.1
12.4 93.8
12.3 1H08 1H09
RM MILLION FILM EXHIBITION AND DISTRIBUTION
Revenue for 1H09 improved due to the opening of 2 new cinemas, namely, GSC 1 Borneo (June 08) and GSC Dataran Pahlawan (July 08).
Operating profit is maintained.
On 23 June 09, GSC opened its 8-screen cinema at Tropicana Mall, PJ and will expanding its current 5-screen cinema at IOI Mall with an
additional 4 screens which will be ready in September 09.
GSC will be opening a 9-screen cinema at East Coast Mall in Kuantan by end-2009.
6.5%
0.8%
Review of Major Operations
0 5 10 15 20 25 30 35
Revenue Operating Profit 34
11.5 21.9
8.5 1H08 1H09
PROPERTY INVESTMENT AND DEVELOPMENT
Revenue for 1H09 was affected by the economic slowdown.
Operating profit was derived mainly from the property development and property investment divisions.
RM MILLION
26.1%
35.6%
5-Year
Financial
Performance
5-Year PBT of PPB Group
0 100200 300 400 500 600700 800 900 1,000 1,100 1,200 1,300 1,400 1,500
2005 2006 2007 2008 Jan - June 2009
609 840 763 1,401 714
RM Million
Year
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) (%) (%) (%)
2009
Interim* 5 5 59.275 0.4 8.9 1.1
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
2005 20 14.40 170.712 3.5 43.3 115.9
*The Board declared an interim single tier dividend of 5 sen per share for the financial year 2009 which is payable on 25 September 2009.
Prospects
2009 for
Prospects for 2009
Prices of wheat, fuel and ocean freight will continue to be key factors affecting the grains, flour and feed milling
operations.
If the H1N1 is controlled, the cinema operations should be able to maintain its operations.
Prospects for the second half of 2009 will remain
challenging for the sugar operations due to a strong swing up in raw sugar prices. The sugar refinery will have to
balance between maintaining reasonable margins and adequate sugar supply in the domestic market due to strong demands.
Prospects for 2009
The global economic slowdown will continue to affect
PPB Group’s performance for the rest of 2009 in respect of lower demand and margins for goods and services offered by the Group. Overall, PPB Group’s operations are expected to perform satisfactorily.
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.
Share
Information
Share Performance
850.00 950.00 1,050.00 1,150.00 1,250.00 1,350.00 1,450.00 1,550.00
7.50 8.50 9.50 10.50 11.50 12.50 13.50 14.50 15.50
Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug
PPB Share Price (RM) FTSE Bursa KLCI
PPB FTSE Bursa KLCI
FTSE Bursa KLCI →1,075.24 PPB →RM11.60
PPB (24.08.09) →RM15.34
