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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
1H2014 Results
3 September 2014
Agenda
2
Group Financial Highlights
Review of Major Operations
Key Achievements in 1H2014
Developments in 2H2014
5-Year Financial Performance
Capital Commitments
Dividend Record
Share Price Performance
Prospects for 2014
3
Group Financial
Highlights
4
(Figures in RM) 1H2014 1H2013 CHANGERevenue 1.84 bil 1.58 bil 16%Operating Expenses 1.71 bil 1.51 bil 13%Share of Wilmar’s Profit 196 mil 300 mil 35%PBT 366 mil 455 mil 20%Profit for the Period 326 mil 427 mil 24%EPS 26.20 sen 35.08 sen 25%
Financial Results FOR THE 6 MONTHS ENDED 30 JUNE 2014
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1H2014 1H2013
EPS 26.20 sen 35.08 sen
ROE Attributable to Owners of the Parent 2.0% 2.8%
Net Assets Per Share Attributable to Owners of the Parent RM13.04 RM12.51
Financial Ratios FOR THE 6 MONTHS ENDED 30 JUNE 2014
Segmental Information FOR THE 6 MONTHS ENDED 30 JUNE 2013
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TOTAL REVENUE RM 1.84 bil
Segmental Information FOR THE 6 MONTHS ENDED 30 JUNE 2014
Flour & Feed Milling, & Grains Trading 61%
12%
Environmental Engineering, Waste Management & Utilities
3%
Film Exhibition & Distribution 10%
Property Investment & Development 3%
11%
Marketing, Distribution & Manufacturing of Consumer Products
Chemicals, Livestock, Investments & Others*
* Chemicals Trading & Manufacturing [3%], Livestock Farming [3%], Bakery [3%], Frozen Food [1%] & Others [1%]
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TOTAL SEGMENT PROFITS RM 167mil
Segmental Information FOR THE 6 MONTHS ENDED 30 JUNE 2014
Flour & Feed Milling, & Grains Trading 52%
Marketing, Distribution & Manufacturingof Consumer Products
9%
Film Exhibition & Distribution 19%
Environmental Engineering, Waste Management & Utilities
1%
Property Investment & Development 10%
9% Chemicals, Livestock, Investments & Others*
* Livestock Farming [5%] & Investment Income [4%]
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Review OfMajor
Operations
Review of Major Operations
FLOUR & FEED MILLING, & GRAINS TRADING
Revenue increased in 1H2014 mainly due to:-- Higher sales volume of flour in
Indonesia, Vietnam & Malaysia- Increased animal feed sales
volume & improved selling prices in Malaysia
Segment profit increased in 1H2014 mainly due to:-- Higher sales volume of feed with
improved profit margins- Higher sales volume of flour
9Revenue Segment Profits0
100
200
300
400
500
600
700
800
900
1000
1100
1200
993
69
1162
87
1H20131H201417%
RM Million
27%
Review of Major Operations
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MARKETING, DISTRIBUTION & MANUFACTURING OF CONSUMER PRODUCTS
Revenue increased in 1H2014 mainly due to:- - Enlarged distributorship of an
agency product since August 2013- Improved sales from other existing
agency products
Segment profit increased in 1H2014 mainly due to:-- In line with revenue growth- Improved sales of agency products
with better margins Revenue Segment Profits
0
20
40
60
80
100
120
140
160
180
200
220
240
193
10.8
224
15.2
1H20131H2014
RM Million16%
40%
Review of Major Operations
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FILM EXHIBITION & DISTRIBUTION
Revenue increased in 1H2014 mainly due to:-- Improved cinema collections from
blockbuster movies- Higher contribution from
concessions & screen advertising income
- Additional revenue from new cinemas opened in 2013
Segment profit in 1H2014 increased mainly due to increase in revenue.
Revenue Segment Profits0
20
40
60
80
100
120
140
160
180
200
172
27
185
32
1H20131H2014
RM Million8%
17%
Review of Major Operations
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ENVIRONMENTAL ENGINEERING, WASTE MANAGEMENT & UTILITIES
Revenue increased in 1H2014 due to more on-going projects.
Segment profit decreased in 1H2014 due to new projects at design approval stage and yet to contribute significantly.
In 1H2013, higher profits from completed projects.
Revenue Segment Profits0
5
10
15
20
25
30
35
40
45
50
55
46
2.9
53.0
1.0
1H20131H201417%
RM Million
66%
Review of Major Operations
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PROPERTY INVESTMENT & DEVELOPMENT
Revenue increased in 1H2014 due to:-- Revenue recognition upon delivery
of vacant possession of bungalows in Bukit Segar
- Higher rental rates from renewal of tenancies
Segment profit in 1H2014 increased due to:-- Higher progress billings- Increase in rental income
Revenue Segment Profits0
5
10
15
20
25
30
35
40
45
50
32
14
48
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1H20131H2014
RM Million51%
17%
Review of Major Operations
CHEMICALS, LIVESTOCK, INVESTMENTS & OTHER OPERATIONS
Combined segment revenue for 1H2014 increased mainly due to:-- Higher revenue by livestock farming
arising from increased sales volume & higher selling prices of day-old-chicks & eggs
- Most of the other segments reported better performance
Combined segment profit for 1H2014 decreased due to:-- There was a one-time gain of RM16
million on disposal of Tradewinds shares in March 2013
14Revenue Segment Profits0
20
40
60
80
100
120
140
160
180
200
220
240
260
219
16
246
15
1H20131H2014
RM Million12%
8%
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Key Achievements
in 1H2014
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Key Achievements in 1H2014
FILM EXHIBITION AND DISTRIBUTION
GSC commenced renovations in GSC Mid Valley to increase the number of screens from 18 to 21.
GSC extended its second Dolby Atmos hall at GSC KL Pavilion on 12 June 2014.
Handed over 4 sewage treatment plants under Greater KL scheme.
ENVIRONMENTAL ENGINEERING, WASTE MANAGEMENT & UTILITIES
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Key Achievements in 1H2014
Secured subcontract for mechanical and electrical works for Project Air Mentah RAPID in Pengerang, Johor.
Commissioned the Ngoi-ngoi Water Treatment Plant in mid-April 2014, augmenting drinking water supply in Negeri Sembilan by 150,000m3/day
Accumulated construction order book close to RM500 million.
PROPERTY INVESTMENT & DEVELOPMENT
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Key Achievements in 1H2014
Following the launch of the 14 units of luxury bungalows at Taman Tanah Aman in Seberang Prai in February 2014, the project has achieved 50% sales to-date.
Masera Bukit Segar comprising 13 units of luxury bungalows have been fully sold and 9 units have been handed over to buyers in March 2014. The project achieved a GDV of RM104 million.
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Key Achievements in 1H2014
BAKERY
The Bakery Division commenced commercial production of its new production line of 6,000 loaves-per-hour bread line end-May 2014.
Launch of “Chiffon-in-a-Cup” cake range.
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Developmentsin 2H2014
The construction of a new 500-mt per day flour mill in northern Vietnam by VFM-Wilmar is expected to be completed by 4Q2014.
FLOUR & FEED MILLING AND GRAINS TRADING
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Developments in 2H2014
In July 2014, Johor Bahru Flour Mill S/B completed the acquisition of a neighbouring piece of land measuring 2.3 hectares in Pasir Gudang, Johor for expansion of its feed milling activities.
GSC opened its 10-screen cinema at Palm Mall Seremban on 23 July 2014.
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Developments in 2H2014
FILM EXHIBITION AND DISTRIBUTION
GSC will be opening 3 new cinemas in Klang Parade (8 screens), NU Sentral, KL (11 screens) and Quill City Mall, KL (10 screens) in 4Q2014.
There are another 9 new cinema projects in the pipeline to be opened in the next 2 years.
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Developments in 2H2014
PROPERTY INVESTMENT AND DEVELOPMENT
Southern Marina Development S/B in which PPB has 28% effective interest is targeting to launch the 1st phase of residential units in its integrated waterfront development in Puteri Harbour, Iskandar Malaysia in 4Q2014.
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5-YearFinancial
Performance
5-Year PBT of PPB Group
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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.
5-Year PBT of PPB Group
2010 2011 2012 2013 Jan-Jun 2014 -
150
300
450
600
750
900
1,050
1,200 1
,129
1,0
57
917
1,0
63
366
RM Million
Year
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CapitalCommitments
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(All figures in RM’Million) 2014As reported previously (6 March 2014) 440Additions/ Project Revision 53
493Amount Spent (151)Balance to be Spent 342
Capital Commitments AS AT 30 JUNE 2014
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Capital Commitments AS AT 30 JUNE 2014
Flour & Feed Milling, & Grains Trading- 500 mt/day flour mill in Vietnam- Investment in China associates- Expansion & upgrading of plant & machinery
RM103 mil
Film Exhibition & Distribution- Opening of 12 new cinemas- Upgrading of existing cinema equipment
RM188 mil
Property Investment & Development- Upgrading of facilities in shopping mall & office buildingRM6 mil
RM6 milMarketing, Dist. & Mftg of Consumer Products- New warehouse & office buildings- Upgrading of machinery & equipment
RM20 milFrozen Food Processing- Processing plant expansionCAPITAL
COMMITMENTS RM 342 mil
Bakery- Acquisition of bakery machinery, support equipment &
sales vansRM10 mil
RM9 mil Others
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DividendRecord
Dividend Record
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Dividend Net NetPayout Ratio
Per Share Dividend Dividend Gross Net Paid/payable Yield Group Company
Year (sen) (sen) (RM Million) (%) (%) (%)
2014Interim# 7 7 83 0.5 26.7 44.4
2013 25 25 296 1.6 30.1 155.0
2012 20 20 237 1.7 28.1 62.9
2011 23 23 273 1.3 27.9 28.52010* 88 88 1,043 5.1 100.0 293.8
# The interim single tier dividend of 7 sen per share is payable on 26 September 2014.* Includes Special Dividend of 65 sen per share in 2010.
Dividend RecordDividend Record
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Share PricePerformance
Share Price Performance
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG12.00
12.50
13.00
13.50
14.00
14.50
15.00
15.50
16.00
16.50
17.00
1,700.00
1,720.00
1,740.00
1,760.00
1,780.00
1,800.00
1,820.00
1,840.00
1,860.00
1,880.00
1,900.00
FBM KLCI PPB Shares - Month End Closing Price (RM)
PPB
Sha
res
- Mon
th E
nd C
losi
ng P
rice
(RM
)
FBM
KLC
I
Jan - Jun 2014 PPB FBM KLCIClosing Price (High) 16.68 1,892.33Closing Price (Low) 14.76 1,778.83Closing (30.06.14) 15.14 1,882.71Average Daily Volume 434,765 129,823,712
PPB (29.08.14) RM14.78
FBM KLCI (29.08.14) 1,866.11
2013 2014
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Prospectsfor
2014
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Prospects for 2014
PPB Group’s flour and feed milling, consumer products, film exhibition and bakery businesses are anticipated to benefit from the robust domestic consumption for the rest of the year. Several environmental engineering contracts which are scheduled to progress into the construction stage, coupled with the sales of bungalow units in Seberang Prai and Cheras will contribute positively to Group results.
For 2014, the Group’s core businesses are expected to perform well; whilst its overall consolidated financial results will continue to be contingent on Wilmar, which expects better performance in the second half of 2014.
Questions&
Answers
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