rd Quarter 2013 - ChartNexusir.chartnexus.com/thplantation/doc/presentation/THP - 3Q13...3rd Quarter...

1 TH PLANTATIONS BERHAD

(Company No: 12696-M)

3rd Quarter 2013 Analyst/Investor Briefing 18 Nov 2013 5.00pm

TH PLANTATIONS BERHAD


Presented by: Dato’ Zainal Azwar Zainal Aminuddin Chief Executive Officer



Performance highlights

-22% YoY +3% QoQ

CPO Realised Prices

+118% YoY +47% QoQ

CPO Production

+67% YoY +28% QoQ

FFB Production

+93% YoY +45% QoQ

PK Production

-24% YoY +2% QoQ

PK Realised Prices

+71% YoY +12% QoQ

EBITDA

+58% YoY +36% QoQ

Revenue

+41% YoY +274% QoQ

Profit Before Tax

3Q13 highlights



Area Statement

Oil Palm Peninsular Sabah Sarawak Total

Mature 11,531 7,792 13,549 32,871

Immature 7,003 729 18,883 26,615

Total planted 18,533 8,521 32,432 59,486

In course of planting 785 5,517 6,302

Rubber Sabah

Mature -

Immature 2,982

Total planted 2,982

In course of planting 3,200

Mature Oil Palm 34%

Immature Oil Palm 27%

Immature Rubber

3%

Immature Teak 5%

In-course of Planting

10%

Infra & Others 21%

Total land bank: 97,712 Ha

>25 years (Old

Mature)

20 - 25 (Old

Mature)

10 - 19 (Prime

Mature)

4 - 9 (Young

Mature)

42%

25% 18%

15%

Average age: 14 years



FFB contribution by region

33%

47%

20%

3Q2013

50%

19%

31%

3Q2012

Peninsular

Sabah

Sarawak

Peninsular Sabah

Sarawak

Higher contribution from the Sarawak region following acquisitions made in 2012



A closer look at revenue indicators

Mature Area (ha) 23

,645

32,8

71

32,8

71

3Q12 3Q13 2Q13

+39%

FFB Production (MT)

136,

154

227,

407

177,

766

3Q12 3Q13 2Q13

+67%

CPO Production (MT)

22,4

85

49,

130

33,3

31

3Q12 3Q13 2Q13

+118%

FFB Processed (MT)

112,

181

241,

291

169,

676

3Q12 3Q13 2Q13

+115%

CPO Sales (MT) 18

,213

48,5

68

33,

841

3Q12 3Q13 2Q13

+167%

PK Production (MT)

5,9

65

11,4

93

7,9

15

2Q12 2Q13 2Q13

+93%



A closer look at revenue indicators

FFB Yield (MT/ha)

5.76

6.92

5.41

3Q12 3Q13 2Q13

+20%

KER (%)

5.32

4.76

4.66

3Q12 3Q13 2Q13

0.56 ppt

OER (%)

20.0

4 20.3

6

19.6

5

3Q12 3Q13 2Q13

0.32 ppt



4.51 4.66

5.76

7.22

4.89

5.41

6.92

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

-

50,000

100,000

150,000

200,000

250,000

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Higher growth in FFB production seen

+3%

+26%

+29% +12%

+28%

FFB

Pro

du

ctio

n (

MT)

Post major acquisitions

FFB Y

ield

/he

ctare

(MT/H

a)



A closer look at costs

Cost of Sales 3Q13 3Q12 Variance (%) Remarks

Estate Production Cost 41,562 39,415 +5% In line with higher production and better efficiencies – lower unit production cost

Overhead 6,726 5,272 +28%

FFB Purchases 12,584 3,416 +268%

Mill Manufacturing Cost 12,480 6,488 +92% In line with higher production and new mills – lower unit processing cost

Depreciation – Estates 1,851 1,195 +55% In line with major acquisitions

Depreciation – Mill 4,160 2,010 +107% In line with major acquisitions

Amortisation 13,723 6,435 +113% In line with major acquisitions

Other Costs 3Q13 3Q12 Variance (%) Remarks

Admin Expenses 3,343 3,334 +0% Minimal variance

Other operating expenses 1,019 758 +34%

Depreciation 306 282 +9%

Zakat - 158 n.m Current liabilities > current assets

Finance Cost 6,997 2,457 +185% Higher debt due to major acquisitions



1,4

08

94

4

3Q12 3Q13

CPO Production Cost (RM/MT)

-32%

Higher efficiency has led to lower production cost/MT

Ow

n F

FB

28

9

18

3

3Q12 3Q13

Estate Production Cost (RM/MT)

-37%

58

52

3Q12 3Q13

Mill Manufacturing Cost (RM/MT)

-11%

*excl depreciation



CPO prices improved slightly, still lower than last year

3Q13 3Q12

CPO RM2,209 RM2,827

PK RM1,222 RM1,598

FFB RM436 RM568

-22%

-24%

-23%

YTD13 YTD12

CPO RM2,143 RM3,025

PK RM1,181 RM1,831

FFB RM447 RM673

-29%

-35%

-34%



Overview of Profit & Loss (3Q)

(RM ‘000) 3Q13 3Q12

Revenue 130,146 82,342

Sales of CPO 107,310 51,488

Sales of PK 12,992 8,027

Sales of FFB 5,691 15,200

Management fees 4,152 7,554

Dividends 74

Cost of Sales (91,863) (56,877)

Gross Profit 38,283 25,465

Other Expenses (11,665) (6,989)

Admin expenses (3,343) (3,334)

Other operating expenses (1,325) (1,040)

Zakat 0 (158)

Finance costs (6,997) (2,457)

Other Income 1,146 1,221

Profit Before Tax 27,763 19,698

Tax (8,634) 10,050

Profit After Tax 19,130 29,748

EBITDA 54,801 32,077

Gross Profit before amortisation 52,006 31,900

Revenue up by 58%

Other expenses higher by 67% due to higher finance costs

EBITDA up by 71% Gross profit excl amort up by 63%

Gross profit up by 50%

PBT up by 41%

PAT down by 36% (3Q12 PAT boosted by deferred taxes)



EBITDA margins reasonably sustained

40%

36%

39%

30% 30% 32%

42%

18%

23%

36%

12%

7%

11%

15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

-

10,000

20,000

30,000

40,000

50,000

60,000

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

EBIT

DA

(R

M) EB

ITDA

margin

(%)



Overview of Profit & Loss (YTD)

(RM ‘000) YTD13 YTD12

Revenue 315,404 276,740

Sales of CPO 247,143 190,484

Sales of PK 31,965 32,515

Sales of FFB 24,827 35,160

Management fees 11,468 18,507

Dividends 0 74

Cost of Sales (243,118) (190,007)

Gross Profit 72,286 86,733

Other Expenses (35,202) (21,443)

Admin expenses (12,908) (10,076)

Other operating expenses (4,919) (4,225)

Zakat 0 (921)

Finance costs (17,375) (6,221)

Other Income 3,159 4,264

Profit Before Tax 40,242 69,555

Tax (4,396) (839)

Profit After Tax 35,846 68,716

EBITDA 112,512 103,869

Gross Profit before amortisation 112,632 105,084

Revenue up by 14%

Other expenses higher by 64% due to higher finance costs

EBITDA up by 8% Gross profit excl amort up by 7%

Gross profit down by 17% due to lower ASPs, exacerbated by higher

depreciation and amortisation

PBT down by 42%, exacerbated by higher finance costs

PAT down by 48%



Progress Update – New Mill Commissioned



Capacity : 60 MT/hour Location : Pusa, Sarawak Surrounding estates : 1.Ladang Kenyalang

2.Ladang Raja Udang 3.Ladang Enggang 4.Ladang Merbok 5.Ladang Tanjung Lilin 6.Ladang Semarang 7.Ladang NCR Beladin

Raja Udang POM has commenced operations in July



Progress Update – Rubber Development Programme



Rubber Development Programme

• Why rubber?

– Supply severely short (demand of 2m tonnes of latex per year vs supply of only 1m tonnes for downstream eg gloves)

– Currently importing from other rubber-producing countries eg Thailand

– 90% of local production currently from small holders

– Vast potential for THP to tap




2013

2014

2015

2016

Planted: 2,164 hectares

Planned: 2,000 hectares

Planned: 1,523 hectares

In course of planting: 3,200 hectares

2006 Planted: 818 hectares

2,982 hectares






Outlook for 4Q13

We believe production has peaked in 3Q13

Production expected to be affected as we enter monsoon season

We are working towards our targeted FFB production

Operations will continue to find avenues for higher efficiencies

Costs are expected to remain low

CPO prices are expected to remain between RM2,500 to RM2,600 until end of the year

Production

Efficiency

CPO Price



Thank You

Our vision is to be an integrated and sustainable plantation player

with global recognition, promising premium quality products

For further information/queries, please email [email protected]

TH PLANTATIONS BERHAD


mailto:[email protected]



A closer look at revenue

Mature Area (ha) 23

,645

32,8

71

9M12 9M13

+39%

FFB Production (MT)

348,

485

564,

210

9M12 9M13

+62%

CPO Production (MT)

67,0

77

11

2,0

19

9M12 9M13

+67%

FFB Processed (MT)

332,

636

556,

310

9M12 9M13

+67%

CPO Sales (MT)

62,

970

115,

349

9M12 9M13

+83%

PK Production (MT)

18,7

66

26,7

91

9M12 9M13

+43%



A closer look at revenue

FFB Yield (MT/ha)

14.7

4

17.1

6

9M12 9M13

+16%

KER (%)

5.64

4.8

2

9M12 9M13

0.82 ppt

OER (%)

20.1

7

20.

14

9M12 9M13

0.03 ppt



FFB contribution by region

33%

42%

25%

YTD 2013

50%

16%

34%

YTD 2012

Peninsular

Sabah

Sarawak

Peninsular Sabah

Sarawak

Higher contribution from the Sarawak region following acquisitions made in 2012



1,4

54

1,0

92

YTD12 YTD13

CPO Production Cost (RM/MT)

-25%

Higher efficiency has led to lower production cost/MT

Ow

n F

FB

28

6

18

8

YTD12 YTD13

Estate Production Cost (RM/MT)

-33%

60

55

YTD12 YTD13

Mill Manufacturing Cost (RM/MT)

-7%

*excl depreciation *excl depreciation

*excl depreciation

Date post:	13-Mar-2018
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