Th Plantations Bhd. · MYX:THPLANT
Th Plantations Bhd — Shareholder Meeting (June 2023)
33 slides from Th Plantations Bhd's shareholder meeting presentation, Jun 27, 2023
Slide 1: 49th Annual General Meeting
ANNEXURE A 49th ANNUAL GENERAL MEETING 27 JUNE 2023 PRESENTATION BY MOHAMED ZAINURIN MOHAMED ZAIN Chief Executive Officer
Slide 2: Table of Contents
TABLE OF CONTENTS 01 OVERVIEW 02 FINANCIAL PERFORMANCE 03 OPERATIONAL STATISTICS 04 TRANSFORMATION PHASE 05 CHALLENGES & OUTLOOK 06 CONCLUSION
Slide 3: Overview
OVERVIEW Shareholding FY2022 73.84% MARKET CAP SHARE PRICE 26.16% FY2022 RM 441,941,279 RM 0.53 FY2021 RM 530,310,882 RM 0.60 PUBLIC Current Business Model Workforce FY2022 Executive & Above 244 Developing Processing Marketing Managing Support 486 & Cultivation FFB into of CPO, PK Agent (Clerical &
Slide 4: THP Group Land Bank, Estates and Palm Oil Mills
OVERVIEW THP GROUP Land Bank 97,809Ha 38 Estates THP Group 6 Palm Oil Mills Ʃ Subsidaries = 25 Ʃ Workforce = 5,303 Ʃ Landbank = 97,809 Peninsular 13,453 Ha Sabah 25,643 Ha Sarawak 51,784 Ha Indonesia 6,929 Ha Ʃ Planted Area = 67,332 Ha Oil Palm 56, 952 Ha Rubber & Teak 10,380 Ha UJEHS* 8,295 Ha ±106
Slide 5: Table of Contents: Financial Performance
TABLE OF CONTENTS 01 OVERVIEW 02 FINANCIAL PERFORMANCE 03 OPERATIONAL STATISTICS 04 TRANSFORMATION PHASE 05 CHALLENGES & OUTLOOK 06 CONCLUSION
Slide 6: THP 2022 Financial Performance
THP 2022 FINANCIAL PERFORMANCE REVENUE PAT PATAMI YIELD DEBT DIVIDEND RM 881.3m RM 87.9m RM 68.8m 13.21mt/h 0.60x 3.0 sen FY21: RM 760.8m FY21: RM101.6m FY21: RM70.1m FY21: 13.3mt/h FY21: 1.22x FY21: NIL 6
Slide 7: Financial Performance FY2022: Main Factors
FINANCIAL PERFORMANCE FY2022 Main Factors contributing to the positive performance… FY2022 FY2021 YoY 1. HIGHER SELLING PRICES RM/mt RM/mt CPO 4,476 3,762 18.9% PK 2,884 2,768 4.2% FFB 1,023 842 21.5% 2. HIGHER SALES QUANTITY MT CPO 154,204 154,026 0.12% PK 38,465 36,931 4.15% RM’000 RM’000 3. HIGHE
Slide 8: Borrowings & Gearing Ratio
BORROWINGS & GEARING RATIO THP is in a positive net cash position from its operating & financial activities with lower debts. FY2022 FY2021 YoY Net Gearing (times) 0.60 1.22 RM’Mil Borrowings 856 1,372 Cash and Cash Equivalents 116 260 Net Borrowings 740 1,112 FY2022 +RM146,470 -RM34,313 -RM252,734
Slide 9: Key Financial Ratio
KEY FINANCIAL RATIO Lower EPS and ROE inline slightly lower with PATAMI 12 FY2022 FY2021 10 EPS (sen) 6.75 7.94 8 ROE (%) 10.2 11.42 6 PRICE TO EARNING 7.78 7.56 RATIO (times) 4 PRICE TO BOOK 0.35 0.56 2 RATIO (times) DIVIDEND (%) 3 NIL 0 EPS (sen) ROE (%) PTER (times) PTBR (times) DIVIDEND (%) FY20
Slide 10: Table of Contents: Operational Statistics
TABLE OF CONTENTS 01 OVERVIEW 02 FINANCIAL PERFORMANCE 03 OPERATIONAL STATISTICS 04 TRANSFORMATION PHASE 05 CHALLENGES & OUTLOOK 06 CONCLUSION
Slide 11: Land Bank & Area Statement by Region FY2022
LAND BANK & AREA STATEMENT BY REGION FY2022 Approximately 68% of the land area is planted. TOTAL IN-COURSE PLANTED OTHERS/ MATURE IMMATURE LAND OF PLANTING AREA IDLE LANDS BANK REGION OIL PALM (Ha) Semenanjung 11,689 930 305 12,924 529 13,453 Sabah 7,299 1,274 500 9,073 857 9,930 Sarawak 32,666 475
Slide 12: Age Profile
AGE PROFILE Approximately 91% of the oil palm is producing fruitlets. OIL PALM AGE PROFILE /HA FY2022 FY2021 26 > (Old Mature) 4 - 8 (Young Mature) Immature 1,201 Ha 4,296 4,910 9,525 Ha 4,296 Ha Immature (8%) (8%) 8% 2% 9,525 10,123 17% 19-25 Young Mature (4-8 years) (17%) (18%) 13% (Mature) 7,245
Slide 13: Operational Performance vs MPOB
OPERATIONAL PERFORMANCE VS MPOB THP recorded higher FFB yield in Peninsular Malaysia and Sabah compared to MPOB average. The Sarawak estates are undergoing consolidation activities to ensure future sustainable production and growth. THP MPOB FFB Yield OER (%) KER (%) FFB Yield OER (%) KER (%) FY2022
Slide 14: Table of Contents: Transformation Phase
TABLE OF CONTENTS 01 OVERVIEW 02 FINANCIAL PERFORMANCE 03 OPERATIONAL STATISTICS 04 TRANSFORMATION PHASE 05 CHALLENGES & OUTLOOK 06 CONCLUSION
Slide 15: Transformation Phase
TRANSFORMATION PHASE The Group concentrates on its transformation phase, with emphasis on enhancing its operational efficiency and value creation initiatives . COMPONENTS OBJECTIVES STRATEGIES Focus on back-to-basic Operational Improve yields in increasing Efficiency and profitability yields and red
Slide 16: Transformation Phase: Programmes, Initiatives, Governance, Systems
TRANSFORMATION PHASE A concerted effort has been made to ensure overall improvement through various operational programmes, governance practices and systems: PROGRAMMES VALUE CREATION INITIATIVES GOVERNANCE PRACTICES SYSTEMS Increase Purchase Sustainable Practices & Optimise Utilisation of Scheduled
Slide 17: Scheduled Replanting Programme
TRANSFORMATION INITIATIVES - PROGRAMME Scheduled Replanting Programme to ensure optimum age profile. Replanting Policy : 5% of the total planted area annually : Maintaining an immature area of approx. 15% Replanting Programme from FY2022 to FY2027 3,000 2,500 2,000 1,579 1,469 1,500 Replanting Progr
Slide 18: Consolidation Activities and Good Agronomic Practices
TRANSFORMATION INITIATIVES - PROGRAMME CONSOLIDATION ACTIVITIES GOOD AGRONOMIC PRACTICES To further improve yields and overall profitability of the estates, which includes upkeep & weeding, improving roads & bridges, soil conservation, pest & disease control, water management and optimal fertiliser
Slide 19: Increased FFB Purchase to Optimise Mills Capacity
TRANSFORMATION INITIATIVES - PROGRAMME INCREASED FFB PURCHASE TO OPTIMISE MILLS CAPACITY Embarked on a two-pronged strategy to aggressively increased purchase of FFB from third parties to optimise the capacity of the mills. Established a Strategic Partnership Program with local smallholders for FFB
Slide 20: Effective Manpower Capability & Knowledge
TRANSFORMATION INITIATIVES - PROGRAMME EFFECTIVE MANPOWER CAPABILITY & KNOWLEDGE Realign the Performance Management System, Management & Monitoring, Training and encourage knowledge sharing practices 20
Slide 21: Certification & ESG Initiatives
TRANSFORMATION INITIATIVES – GOVERNANCE PRACTICES CERTIFICATION & ESG INITIATIVES All of our estates and Installation of mills are MSPO and Electrostatic MSPO SCCS certified. Precipitator Systems Compliance with the (ESP) at 5 mills to ESG standards and reduce air pollution practices. emissions and
Slide 22: Enhancement of Enterprise Risk Management Framework
TRANSFORMATION INITIATIVES - GOVERNANCE Enhancement the Enterprise Risk Enhance Policies & Management Framework Standard Operating Procedures 22
Slide 23: Optimise Utilisation of Mill By-Products
TRANSFORMATION INITIATIVES - SYSTEMS Optimise utilisation of Mill By-Products as a source for renewable energy and substitute for inorganic fertilizer. 23
Slide 24: Expand Mechanisation Initiatives
TRANSFORMATION INITIATIVES - SYSTEMS Expand Mechanisation Initiatives to Improve Productivity Invested RM1.6 million on machines like Mechanical Buffalo, Fertilizer Spreader, Mechanical Crawler and Grabber. 24
Slide 25: Enhance Use of Technology
TRANSFORMATION INITIATIVES - SYSTEMS Enhance Use of Technology Digital Meeting HRMIS e-Claim Hardware management software (HQ) (eClaim) Leasing Employee claims via browser or Digital meeting management Conserve cash flow, hedge mobile apps which promote software that promotes active against equipmen
Slide 26: Drone Technology - Digital Mapping and Tree Counting
TRANSFORMATION INITIATIVES - SYSTEMS Drone Technology - Digital Mapping, Pest Data Gathering & Accurate Tree Counting Mapping and Inventory of Oil Palm Plantations – Tree Counting Sample Output (Web GIS - Dashboard) 26
Slide 27: Table of Contents: Challenges & Outlook
TABLE OF CONTENTS 01 OVERVIEW 02 FINANCIAL PERFORMANCE 03 OPERATIONAL STATISTICS 04 TRANSFORMATION PHASE 05 CHALLENGES OUTLOOK 06 CONCLUSION
Slide 28: Challenges - Operations
CHALLENGES - OPERATIONS DISTRUPTION OF GLOBAL CONSTRAINT ON LABOUR SHORTAGE SUPPLY CHAIN & INFLATION LAND UTILISATION ❑ Slow return of foreign workers ❑ Various conflicts had disrupted ❑ To maximise the value of the land especially harvester which global supply chains resulting in ❑ Immature Rubber
Slide 29: Outlook - Economy & the Industry (FY2023)
OUTLOOK - ECONOMY & THE INDUSTRY (FY2023) Demand for Palm Oil is expected to remain strong in the future … BULLISH FACTORS ➢ Weak Ringgit Malaysia against US Dollar – stimulate demand support ➢ Confirmed El Niño effect – reduced stock and pushing the price on the upside ➢ Indonesia Biodiesel Mandate
Slide 30: Table of Contents: Conclusion
TABLE OF CONTENTS 01 OVERVIEW 02 FINANCIAL PERFORMANCE 03 OPERATIONAL STATISTICS 04 TRANSFORMATION PHASE 05 CHALLENGES OUTLOOK 06 CONCLUSION
Slide 31: Conclusion - Key Message
CONCLUSION – KEY MESSAGE THP Performed better in 2022 despite a challenging operating year. Improving Operational Efficiency remains key to ensure THP’s growth, impact and sustainability Positive Performance shows THP is on the right track to be a respectable company through its Transformation Initi
Slide 32: Appreciation
APPRECIATION The Management would like to record our appreciation to THP’s Board Members for their support in executing the Transformation Phase through the various initiatives The Board’s leadership and valuable inputs played a vital role in achieving THP’s positive results and is essential towards
Slide 33: Thank You
)PTIMISING |
TH Plantations Berhad — Shareholder Meeting (June 2023) on 6ix