PRESS AND ANALYST BRIEFING PRESS AND ANALYST BRIEFING PRESS AND ANALYST BRIEFING PRESS AND ANALYST BRIEFING
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PRESS AND ANALYST BRIEFING PRESS AND ANALYST BRIEFING PRESS AND ANALYST BRIEFING PRESS AND ANALYST BRIEFING 1H2015 Results 1H2015 Results 1H2015 Results 1H2015 Results
4 September 2015 4 September 2015 4 September 2015 4 September 2015
Agenda
Group Financial Highlights Group Financial Highlights Group Financial Highlights Group Financial Highlights Review of Major Operations Review of Major Operations Review of Major Operations Review of Major Operations Key Key Key
Key Events in 1H2015 Events in 1H2015 Events in 1H2015 Events in 1H2015 Developments
Developments Developments
Developments in 2H2015 Developments in 2H2015 in 2H2015 in 2H2015 Developments Developments
Developments in 2H2015 in 2H2015 in 2H2015 in 2H2015 5 5 5
5----Year Financial Performance Year Financial Performance Year Financial Performance Year Financial Performance Capital Commitments
Capital Commitments Capital Commitments Capital Commitments Dividend Record
Dividend Record Dividend Record Dividend Record
Share Price Performance Share Price Performance Share Price Performance Share Price Performance Prospects for 2015
Prospects for 2015 Prospects for 2015 Prospects for 2015
2
Group
Group
Group
Group
Group
Group
Group
Group
Financial
Financial Financial
Financial
Highlights
Highlights
Highlights
Highlights
GROUP OPERATIONS GROUP OPERATIONS GROUP OPERATIONS GROUP OPERATIONS
Grains &
Agribusiness
flour milling
Consumer Products
marketing &
distribution of edible oils &
Film Exhibition &
Distribution
exhibition &
distribution of cinematograph
Environmental Engineering &
Utilities
construction works
specialising in
Property
letting of commercial
Investments in Equities
investments in quoted &
unquoted
Other Operations
chemicals trading &
PPB Group Berhad Segmental Reporting
4 4
animal feed manufacturing wheat & maize trading
Production of day-old-
chicks, eggs &
related downstream activities oil palm plantations
edible oils &
consumer products production &
distribution of frozen food &
bakery products Manufacturing of toiletry requisites &
household products
cinematograph films
specialising in water &
environmental industries provision of waste
management services
commercial properties development of residential &
commercial properties
unquoted shares
trading &
manufacturing
packaging
investment holding
others
(Figures in RM) 1H2015 1H2014 CHANGE
Revenue
1.96 bil 1.84 bil 7%
Operating Expenses
1.88 bil 1.71 bil 10%
Financial Results Financial Results Financial Results
Financial Results
FOR THE 6 MONTHS ENDED 30 JUNE 2015Share of Wilmar’s Profit
294 mil 196 mil 50%
PBT
465 mil 366 mil 27%
Profit for the Period
418 mil 326 mil 28%
EPS
35.05 sen 26.20 sen 34%
1H2015 1H2014
EPS
35.05 sen 26.20 sen
ROE Attributable to
Financial Financial Financial
Financial Ratios Ratios Ratios Ratios
FOR THE 6 MONTHS ENDED 30 JUNE 20156
ROE Attributable to
Owners of the Parent
2.3% 2.0%
Net Assets Per Share Attributable to
Owners of the Parent
RM15.13 RM13.04
Segmental Information Segmental Information Segmental Information
Segmental Information
FOR THE 6 MONTHS ENDED 30 JUNE 2013TOTAL
Segmental Information Segmental Information Segmental Information
Segmental Information
FOR THE 6 MONTHS ENDED 30 JUNE 2015Consumer Products 15%
Film Exhibition & Distribution 11%
Grains & Agribusiness 63%
TOTAL
REVENUE RM 1.96 bil
Film Exhibition & Distribution 11%
Environmental Engineering & Utilities 6%
Investments & Other Operations 4%
Property 1%
Segmental Information Segmental Information Segmental Information
Segmental Information
FOR THE 6 MONTHS ENDED 30 JUNE 2015Film Exhibition & Distribution 21%
Property 8%
Grains & Agribusiness 58%
TOTAL
SEGMENT
8
Property 8%
Consumer Products 7%
Environmental Engineering & Utilities 3%
Investments & Other Operations 3%
SEGMENT
PROFITS
RM 171.5 mil
Review Of
Review Of Review Of
Review Of Review Of
Review Of Review Of
Review Of
Major
Major Major
Major
Operations
Operations
Operations
Operations
GRAINS & AGRIBUSINESS
Revenue increased due to:-
- Higher animal feed and maize sales volumes.
- Increased flour volume in Vietnam.
- Improved selling prices of flour in
900 1,000 1,100 1,200 1,300 1,400
1H2014 1H2015 5%
RM million
Review of Major Operations Review of Major Operations Review of Major Operations Review of Major Operations
- Improved selling prices of flour in Malaysia.
Segment profit increased slightly due to:- - Improved foreign exchange translation
positions.
- Favourable raw material costs.
The livestock farming business and Indonesia flour mill incurred losses in 1H2015 due to difficult operating
environments. 10
0 100 200 300 400 500 600 700 800 900
Revenue Segment Profits 1,226
96 1,288
100 4%
CONSUMER PRODUCTS
Revenue was broadly the same as 1H2014. The opening of new
distribution centres for bakery
products contributed to the revenue growth but was negated by lower
200 220 240 260 280 300 320
1H2014 1H2015 RM million
0.01%
Review of Major Operations Review of Major Operations Review of Major Operations Review of Major Operations
growth but was negated by lower revenue generated from agency products.
Segment profit decreased due to higher advertising, promotional &
selling expenses.
20 40 60 80 100 120 140 160 180 200
301
16 301
12 25%
FILM EXHIBITION &
DISTRIBUTION
Revenue increased due to:- - Opening of six new cinemas - Release of summer blockbuster
movies.
160 180 200 220 240
1H2014 1H2015 RM million
21%
Review of Major Operations Review of Major Operations Review of Major Operations Review of Major Operations
12
movies.
Segment profit increased in line with revenue growth.
0 20 40 60 80 100 120 140
Revenue Segment Profits 185
32 224
37 14%
ENVIRONMENTAL ENGINEERING
& UTILITIES
Revenue increased due to:- - More on-going projects.
- Revenue being progressively
recognised from a raw water supply
80 90 100 110 120 130
1H2014 1H2015
>100%
RM million
Review of Major Operations Review of Major Operations Review of Major Operations Review of Major Operations
recognised from a raw water supply project.
- Most of the sewage treatment projects being at the construction stages.
Segment profit grew in tandem with higher revenue.
10 20 30 40 50 60 70 80
53
1 121
5
>100%
PROPERTY
Revenue decreased due to:- - Lower progress billings from
property sales.
- The current billings from bungalows sales in Seberang Perai Tengah are
35 40 45 50 55
1H2014 1H2015 RM million
37%
Review of Major Operations Review of Major Operations Review of Major Operations Review of Major Operations
14
sales in Seberang Perai Tengah are of lesser values compared with the billings in 1H2014 on delivery of vacant possession of the Masera bungalows in Kuala Lumpur.
Segment profit decreased due to lesser progress billings after
completion of the Masera bungalows in 2014.
0 5 10 15 20 25 30 35
Revenue Segment Profits 48
30 17
13 23%
INVESTMENTS & OTHER OPERATIONS
Revenue from the combined segment decreased due to:-
- Lower revenue from chemicals trading &
manufacturing business as management tightened credit control policies &
80 100 120
1H2014 1H2015 RM million
26%
Review of Major Operations Review of Major Operations Review of Major Operations Review of Major Operations
tightened credit control policies &
streamlined sales.
- Relocation of packaging production facilities from Malaysia to Myanmar.
- Discontinuation of shipping business.
- Lower dividends received.
Combined segment profit increased due to:- - Lower raw material costs.
- Favourable foreign exchange transactions
20 40 60
105
5 77
6 18%
Key Key Key Key
16
Key
Key Key
Key
Events
Events Events
Events
in 1H2015
in 1H2015
in 1H2015
in 1H2015
GRAINS & AGRIBUSINESS GRAINS & AGRIBUSINESS GRAINS & AGRIBUSINESS GRAINS & AGRIBUSINESS
On 20 April 2015, Glowland Ltd (“Glowland”), a 100% subsidiary of FFM Berhad, entered into a Members’ Contract with Siteki
Investments Pte Ltd (“Siteki”), a 100% subsidiary of Wilmar to set up Meizan CLV Corporation (“MCC”) in Vietnam to produce
Key Events in Key Events in Key Events in
Key Events in 1H2015 1H2015 1H2015 1H2015
and sell egg noodles, rice macaroni and flour/ rice premixes in Vietnam.
The charter capital and total investment capital of MCC is
USD2.6 million and USD8.06 million respectively. Glowland and Siteki will each contribute 50% to the charter capital of MCC.
FILM EXHIBITION AND DISTRIBUTION FILM EXHIBITION AND DISTRIBUTIONFILM EXHIBITION AND DISTRIBUTION FILM EXHIBITION AND DISTRIBUTION
GSC opened the following new cinemas:-
Cinema No. of screens Date
GSC Nu Sentral 11 29 Jan 2015
Key Events in Key Events in Key Events in
Key Events in 1H2015 1H2015 1H2015 1H2015
18
GSC Ipoh Parade 11 5 Feb 2015
GSC IOI City Mall Putrajaya 13 12 Feb 2015
GSC Klang Parade Mall 8 11 Jun 2015
TOTAL 43
Handed over 2 water projects in Melaka and Negeri Sembilan.
Current order book valued at RM340 million.
ENVIRONMENTAL ENGINEERING & UTILITIES ENVIRONMENTAL ENGINEERING & UTILITIES ENVIRONMENTAL ENGINEERING & UTILITIES ENVIRONMENTAL ENGINEERING & UTILITIES
Key Events in Key Events in Key Events in
Key Events in 1H2015 1H2015 1H2015 1H2015
PROPERTY PROPERTY PROPERTY PROPERTY
Southern Marina Development S/B in which PPB has 28%
effective interest officially launched its Southern Marina Residences (SMR), the 1st phase of a 12.5-acre freehold
integrated waterfront development in Puteri Harbour on 27 June 2015.
Key Events in Key Events in Key Events in
Key Events in 1H2015 1H2015 1H2015 1H2015
20
2015.
The project was launched with the opening of the Southern Marina Puteri Harbour Sales Gallery and Show Units.
SMR comprise 456 units of condominium housed in 2 towers with a combined gross development value of RM550 million.
Developments Developments Developments Developments Developments Developments Developments Developments
in 2H2015
in 2H2015
in 2H2015
in 2H2015
GRAINS & AGRIBUSINESS GRAINS & AGRIBUSINESS GRAINS & AGRIBUSINESS GRAINS & AGRIBUSINESS
Vietnam Flour Mills Ltd, a 100% subsidiary of FFM Berhad, will be setting up another 500-mt per day wheat mill in its Vung Tau factory in south Vietnam. The cost of the mill is budgeted at USD16.2 million and targeted to be completed in early 2017.
Developments in 2H2015 Developments in 2H2015 Developments in 2H2015 Developments in 2H2015
22
FILM EXHIBITION AND DISTRIBUTION FILM EXHIBITION AND DISTRIBUTIONFILM EXHIBITION AND DISTRIBUTION FILM EXHIBITION AND DISTRIBUTION
GSC will open a new cinema in Aman Central, Alor Setar (10 screens) in 4Q2015.
There are another 7 cinema projects in the pipeline to be opened in the next 2 years.
Developments in 2H2015 Developments in 2H2015 Developments in 2H2015 Developments in 2H2015
in the next 2 years.
GSC is installing the Dolby Atmos system in 9 halls and by end- 2016, the GSC circuit will have 16 Dolby Atmos halls.
PROPERTY PROPERTY PROPERTY PROPERTY
Taman Megah land in Petaling Jaya and New World Park in Penang are currently under design and planning stage for
mixed development. More information will be disclosed when approvals from authorities are secured.
Developments in 2H2015 Developments in 2H2015 Developments in 2H2015 Developments in 2H2015
24
5 5 5
5----Year 5 Year Year Year 5 5
5----Year Year Year Year
Financial
Financial
Financial
Financial
Performance
Performance
Performance
Performance
5 5 5
5----Year PBT of PPB Group Year PBT of PPB Group Year PBT of PPB Group Year PBT of PPB Group
750 900 1,050 1,200
RM million
5 5 5
5----Year PBT of PPB Group Year PBT of PPB Group Year PBT of PPB Group Year PBT of PPB Group
26
- 150 300 450 600
2011 2012 2013 2014 Jan-Jun 2015
1,057 917 1,063 1,028 465
Year
0
Capital
Capital Capital
Capital Capital
Capital Capital
Capital
Commitments
Commitments
Commitments
Commitments
(All figures in RM’million) 2015
As reported previously (5 March 2015)
535
Additions/ Project Revision
87
Capital Commitments Capital Commitments Capital Commitments
Capital Commitments
AS AT 30 JUNE 2015AS AT 30 JUNE 2015AS AT 30 JUNE 2015AS AT 30 JUNE 201528
622
Amount Spent
(52)
Balance to be Spent
570
Grains & Agribusiness
- Investments in China associates
- Construction of a new flour mill to replace the old mills in Johor
- 500 mt/day flour mill in Vietnam Film Exhibition & Distribution - Opening of 8 new cinemas
- Upgrading of equipment in existing cinemas RM293 mil
CAPITAL
Capital Commitments Capital Commitments Capital Commitments
Capital Commitments
AS AT 30 JUNE 2015AS AT 30 JUNE 2015AS AT 30 JUNE 2015AS AT 30 JUNE 2015RM241 mil - Upgrading of equipment in existing cinemas - Investments in Vietnam & Cambodia
Property
- Upgrading of facilities in shopping mall & office building RM13 mil
CAPITAL
COMMITMENTS
RM 570 mil
Consumer Products
- Frozen food processing plant expansion - Purchase of sales vans
- New warehouse & office buildings RM18 mil
Dividend Dividend Dividend Dividend
30
Dividend
Dividend
Dividend
Dividend
Record
Record
Record
Record
Dividend Per Share
Net Dividend
Net
Dividend Payout Ratio
Gross Net Paid/payable Yield Group Company
Year (sen) (sen) (RM million) (%) (%) (%)
2015
Interim# 8 8 95 0.5 22.8 40.3
Dividend Record Dividend Record Dividend Record Dividend Record Dividend Record Dividend Record Dividend Record Dividend Record Dividend Record Dividend Record Dividend Record Dividend Record
Interim#
2014 23 23 273 1.6 29.7 96.4
2013 25 25 296 1.6 30.2 155.2
2012 20 20 237 1.7 28.2 63.0
2011 23 23 273 1.3 27.8 28.4
Share Price Share Price Share Price Share Price
32
Share Price
Share Price Share Price
Share Price
Performance
Performance
Performance
Performance
Share Performance Share Performance Share Performance Share Performance
1,700 1,750 1,800 1,850 1,900
15.00 15.50 16.00
FBM KLCI
Month End Closing Price (RM)
PPB Shares - Month End Closing Price (RM) FBM KLCI
PPB (28.08.15) RM15.34
1,450 1,500 1,550 1,600 1,650 1,700
13.00 13.50 14.00 14.50
FBM KLCI
PPB Shares -Month End Closing Price (
Jan - Jun 2015 PPB FBM KLCI
Closing Price (High) 16.20 1,862.80 Closing Price (Low) 13.80 1,691.92
Closing (30.06.15) 15.12 1,706.64
Average Daily Volume 350,598 131,412,834
FBM KLCI (28.08.15) 1,612.74
Prospects Prospects Prospects Prospects
34
Prospects
Prospects Prospects
Prospects
for for
for for
2015 2015
2015 2015
Management is confident that the Group’s consumer products, grains and agribusiness results will remain positive despite the soft market.
Cinema admissions will continue be driven by strong movie title
Prospects for 2015 Prospects for 2015 Prospects for 2015 Prospects for 2015
releases and the newly-opened cinemas.
The environmental engineering segment should achieve higher revenue in line with the construction progress of contracts in hand.
Property sales are expected to be weak for the rest of the year as the local property market goes through challenging times.
Overall, the Group anticipates to achieve similar performance in the second half of the year while the consolidated financial results
Prospects for 2015 Prospects for 2015 Prospects for 2015 Prospects for 2015
36
in 2015 will continue to be substantially supported by Wilmar’s business performance.
