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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 FY09 Results 5 March 2010
Agenda
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1. Group Financial Highlights
5. Share Information
7. Prospects for 2010 4. Dividend Record
2. Review of Major Operations 3. 5-Year Financial Performance
6. New Business
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Group
Financial
Highlights
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Financial Results
FOR THE YEAR ENDED 31 DEC 2009Grains Trading, Flour & Feed Milling
Waste Management & Utilities Film Exhibition & Distribution Property Development,
Management & Investment Others
Sugar Refining & Cane Plantation Continuing
Operations
Discontinued Operations
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Financial Results
FOR THE YEAR ENDED 31 DEC2.005 bil 2.489 bil
2009 (RM) 2008 (RM) Change
19.4%
16.4%
19.3%
1.892 bil 1.455 bil
2.263 bil 1.220 bil
PBT*
Operating Expenses Revenue
CONTINUING OPERATIONS
21.3%
117.77 sen 97.05 sen
EPS
1.409 bil
Profit for the Year 1.157 bil 21.8%
35.3%
1.211 bil 894.8 mil
* Note :-
Share of Wilmar’s Profit
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Financial Results
FOR THE YEAR ENDED 31 DEC1.407 bil 0.973 bil
2009 (RM) 2008 (RM) Change
44.5%
40.7%
53.7%
1.148 bil 277.1 mil
0.816 bil 180.3 bil
PBT
Operating Expenses Revenue
DISCONTINUED OPERATIONS
61.6%
220 mil 136 mil
Profit for the Year
61.6%
18.54 sen 11.47 sen
EPS
The sale of the sugar assets was fully completed on 12 January 2010 and the gain of about RM857 million will be reflected in PPB Group’s 1Q10 results.
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Financial Ratios
2008
ROE Attributable to
Shareholders 11.5% 10.5%
RM11.88 RM10.32
Net Assets Per Share Attributable to
Shareholders
108.5 sen 136.3 sen
EPS
2009
CONTINUING & DISCONTINUED OPERATIONS
1.293 bil 1.629 bil
Profit for the Year 25.9%
15.1%
25.6%
Segmental Information
FOR THE YEAR ENDED 31 DECEMBER 2009
Segmental Information
FOR THE YEAR ENDED 31 DECEMBER 2009
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Sugar & Cane 39.51%
Grains Trading, Flour & Feed
Milling 32.36%
Waste
Management &
Utilities 2.93%
Film Exhibition 5.78%
Property 1.15%
Others*
18.27%
Total Revenue
Continuing & Discontinued Operations
RM3.412 billion
*Others :-•Chemicals Trading &
Manufacturing [2.00%]
•Livestock Farming [2.55%]
•Shipping [0.31%]
•Consumer Products [9.55%]
•Packaging [1.60%]
•Others [2.26%]
Segmental Information
FOR THE YEAR ENDED 31 DECEMBER 2009
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Grains Trading, Flour & Feed
Milling 53.51%
Waste
Management &
Utilities 4.84%
Film Exhibition 9.55%
Property 1.89%
Others*
30.21%
Total Revenue
Continuing Operations
RM2.005 billion
*Others :-
•Chemicals Trading &
Manufacturing [3.30%]
•Livestock Farming [4.21%]
•Shipping [0.51%]
•Consumer Products [15.78%]
•Packaging [2.65%]
•Others [3.76%]
Segmental Information
FOR THE YEAR ENDED 31 DECEMBER 2009
Segmental Information
FOR THE YEAR ENDED 31 DECEMBER 2009
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Sugar & Cane 62.85%
Grains Trading, Flour & Feed
Milling 20.71%
Waste
Management &
Utilities 0.98%
Film Exhibition 6.33%
Property 2.77%
Others*
6.36%
Total
Operating Profit
Continuing & Discontinued Operations
RM451.5 million
*Others :-•Chemicals Trading &Manufacturing [0.81%]
•Livestock Farming [0.78%]
•Shipping [0.11%]
•Consumer Products [2.98%]
•Packaging [0.32%]
•Others [1.36%]
Segmental Information
FOR THE YEAR ENDED 31 DECEMBER 2009
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Grains Trading, Flour & Feed
Milling 55.77%
Waste
Management &
Utilities 2.63%
Film Exhibition 17.05%
Property 7.47%
Others*
17.08%
Total
Operating Profits
Continuing Operations
RM167.8 million
*Others :-•Chemicals Trading &
Manufacturing [2.17%]
•Livestock Farming [2.10%]
•Shipping [0.29%]
•Consumer Products [8.02%]
•Packaging [0.87%]
•Others [3.63%]
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Review
Of
Major
Operations
Review of Major Operations
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GRAINS TRADING, FLOUR AND FEED MILLING
Revenue for 2009 was mainly
affected by lower sales volume and selling prices of flour in line with the drop in prices of soft commodities.
The decrease in operating profit was due to lower profit margins compared to 2008.
RM MILLION
19.3%
44.3%
Review of Major Operations
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ENVIRONMENTAL ENGINEERING, WASTE MANAGEMENT & UTILITIES
The revenue and operating profit were lower as the group undertakes fewer projects due to stiff competition.
RM MILLION
43.9%
5.2%
Review of Major Operations
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FILM EXHIBITION AND DISTRIBUTION
Revenue for 2009 increased with the opening of new cinemas and improved box office collections of existing cinemas.
Operating profit improved due to the improved performance of cinemas driven by the strong films released in the year.
15.9%
16.7%
Review of Major Operations
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PROPERTY INVESTMENT AND DEVELOPMENT
Revenue for 2009 decreased as there were no new launches in the past 2 years.
Operating profit reduced due to lower revenue from sale of properties.
RM MILLION
39.1%
37.3%
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5-Year
Financial
Performance
5-Year PBT of PPB Group
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RM Million
Year
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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) (%) (%) (%)
2009 -Interim -Special#
-Final*
5 50 18 73
5 50 18 73
59.275 592.750 213.390 865.415
]
] 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
2005 20 14.40 170.712 3.5 43.3 115.9
* The Board recommended a final single tier dividend of 18 sen per share for the financial year ended 31 December 2009 payable on 8 June 2010.
# The special single tier dividend is payable on 15 March 2010.
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Share
Information
Share Performance
2009 2010
850.00 900.00 950.00 1,000.00 1,050.00 1,100.00 1,150.00 1,200.00 1,250.00 1,300.00
9.30 10.30 11.30 12.30 13.30 14.30 15.30 16.30
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb
PPB Share Price (RM) FTSE Bursa KLCI
PPB FTSE Bursa KLCI
PPB KLCI
2009 (RM) 2008 (RM) 2009 Closing Price (High) 16.08 11.90 1,279.95 Closing Price (Low) 9.35 7.30 838.39 Closing (31 Dec) 15.96 9.30 1,272.78 Market Capitalisation 18.9bil 11.0bil
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New
Business
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New Business
FFM will be commissioning their first bakery at Pulau Indah, next to their flour mill complex by end 2010. The bakery with an investment cost of RM105 million will be producing loaf bread and subsequently a variety of buns.
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Prospects
2010 for
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Prospects for 2010
Market condition is expected to remain challenging with keen competition in the flour and feed businesses. FFM’s 1,000 mt flour mill in Indonesia which was commissioned in October 2009 is expected to make a significant
contribution to the revenue of the grains trading, flour and animal feed milling division for 2010. Overall, this division is expected to perform better than in 2009.
Based on the line up of films for the year, the cinema
operations should be able to perform satisfactorily. GSC will also be opening a 9-screen cinema at East Coast
Mall by the 2nd quarter of 2010.
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Prospects for 2010
Whilst the global economic environment remains
uncertain in 2010, economic activities in the Asian region are gaining pace. Riding on this momentum and with
Wilmar’s presence in the growing economies in China, India and Indonesia, PPB Group’s results in 2010 are
expected to be satisfactory. In addition, the gain from the disposal of PPB’s sugar business of about RM857 million will be reflected in the 2010 results.
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.
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Questions
&
Answers
