Slide 1: Powered by Twin Engines: 4Q21 Corporate Update & Financial Results
(Company No.: 7867-P) Powered by Twin Engines Corporate Presentation 4Q21 Corporate Update & Financial Results 29 September 2021 IR Adviser
Slide 2: Financial Performance
Powered by Twin Engines FINANCIAL PERFORMANCE
Slide 3: Revenue Performance
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix FY21 revenue on uptrend despite challenging environment… twin core business model targeting robust packaging market and strong affordable homes demand ❖ Packaging revenue was 2.3% lower due to challenges in Revenue b
Slide 4: Profit Performance
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix FY2021 operating profit remains notable on growth in property development businesses… ❖ Improved FY21 operating profit mainly from: Operating profit by segment ❖ Enhanced operating efficiency and expanded capacity of
Slide 5: Cash Flow
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Operating cashflow at healthy levels amidst CAPEX for packaging machinery and property landbanking... Net cash Net cash from operations used in investing activities FY20 FY21 RM’m 715 700 557 380 392 323 FY16 FY17 FY
Slide 6: Income Statement Summary
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix 4Q21 margins declined on challenging manufacturing sector environment… double- digit growth for full year a good base as local operating conditions improve 4Q21 4Q20 Change RM'mil FY21 FY20 Change Remarks 970.4 954.6
Slide 7: Balance Sheet (Highlights)
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Balance sheet expands on CAPEX for new landbanks…Gearing remains at comfortable level As at As at Balance Sheet (RM ‘000) Remarks 31.07.2021 31.7.2020 Property, Plant & Equipment 1,382,668 1,322,579 Investment Proper
Slide 8: Growth Plans: Privatisation of Daibochi
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Proposed privatisation of Daibochi Berhad to enhance operations and growth in global F&B and FMCG packaging markets… Rationale • To achieve greater flexibility and autonomy to On 13 September 2021,
Slide 9: Growth Plans: Post-Daibochi Acquisition Contribution
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Acquisition of remaining 38% stake in Daibochi EPS accretive… 18.2 (0.7) 407.6 17.5 390.1 EPS = 3.38 sen Total EPS EPS = 79.04 sen = 75.66 sen +4.47% Scientex Daibochi Estimated Daibochi Scientex FY
Slide 10: Packaging Review
Powered by Twin Engines PACKAGING REVIEW
Slide 11: Segment Performance: Packaging
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix FY2021 packaging operating margins improved on better efficiency and product mix to various industries in Asia Pacific… Operating Profit Revenue Operating Profit Operating Profit Revenue -2.3% Margin RM’m yoy RM’m (b
Slide 12: Growth Plans: Packaging
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix 4Q21 operating profit weaker due to lower contribution from converting unit… revenue remained resilient on sales growth in other packaging products Revenue Operating Profit (Quarterly) (Quarterly) 469.1 456.4 452.1 5
Slide 13: Growth Plans: Packaging
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Strengthening and complementing our core expertise to engineer growth… INCREASING GOING CAPABILITES DOWNSTREAM • Continuously improving • Reaching end customers competitive edge of through expanded
Slide 14: Growth Strategies: Packaging
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Four pillars focused on synergistic production capabilities, continued innovation through R&D, increased utilisation rate and achieving sustainability goals Growth supported by Efficiency Driven Ope
Slide 15: Property Development Review
Powered by Twin Engines PROPERTY DEVELOPMENT REVIEW
Slide 16: Segment Performance: Property Development
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Property development segment achieved good sales and construction progress despite MCO interruptions… supported by adoption of intensified digitalisation Revenue Operating Profit Operating Profit (Annual) (Annual) Op
Slide 17: Operations Review: Adapting to COVID-19 New Norm
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Virtual solutions for property sales and marketing well received by customers… adapting to new norms while maintaining high safety amid Covid-19 pandemic • Property viewing process focused on customers’ safety, suppo
Slide 18: Operations Review: Sales Gallery
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Opened new sales galleries at Jasin, Seremban and Sungai Petani… Scientex Jasin Sales Gallery Scientex Seremban Sales Gallery Scientex Sungai Petani Sales Gallery Operations Review: Sales Gallery 18
Slide 19: Operations Review: Land Acquisitions
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Acquiring landbanks to expand affordable homes developments… Seberang Perai Utara, Penang Mukim Tebrau, Johor Jenjarom, Selangor • Proposed acquisition on 5 April • Proposed acquisition on • Proposed acquisition on 2
Slide 20: Growth Plans: Property Development
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Continuing ambitious landbanking and cross-border growth strategy... Completed as at Aug’2021 (2,168 acres) 1 Cheras, Selangor: 139 acres, RM96.6 mil Peninsular Malaysia As at As at 2 Kundang Jaya 2
Slide 21: Growth Strategies: Property Development
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Aiming to provide high-quality, reasonably priced homes to meet Malaysia’s growing need for affordable housing… Vision 2028 Growth Strategies ❖ To deliver 50,000 affordable ❖ Implementing cost optim
Slide 22: Sustainability
Powered by Twin Engines SUSTAINABILITY
Slide 23: Operations Review: ESG pillars
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Inaugural report to show further commitment and action on sustainability…growing efforts to create more shared value for communities, stakeholders and planet Operations Review: ESG pillars 23
Slide 24: Operations Review: ESG pillars
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Value creation at the core of our business… Operations Review: ESG pillars 24
Slide 25: Operations Review: ESG pillars
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix A responsible environmental steward… Operations Review: ESG pillars 25
Slide 26: Operations Review: ESG pillars
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix People first approach… ensuring welfare of employees and community at large 98% fully vaccinated workforce in Malaysia Operations Review: ESG pillars 26
Slide 27: Investment Merits
Powered by Twin Engines INVESTMENT MERITS
Slide 28: Investment Merits
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Twin growth engines with further potential to expand... attractive proxy to the burgeoning packaging sector and Malaysia’s affordable property market Regional leader in total solutions for packaging Valuations @ 24 S
Slide 29: Dividend History
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Proposed final dividend of 5 sen per share in respect of FY2021… RM’m Dividend History 74.0% 49.2% 48.0% 49.8% 52.1% 36.6% 36.1% 35.9% 31.4% 28.7% 28.8% 32.1% 33.4% 31.7% 30.7% 30.2% 33.7% 30.9% 30.4% 30.5% 26.6% 103
Slide 30: Thank You
Powered by Twin Engines Thank You Contacts: • Ms. Choo Pooi Luen plchoo@scientex.com.my T: 03-5524 8888/03-5519 1325 • Ms. Julia Pong julia@aquilas.com.my T: 03-2711 1391