Slide 1: Powered by Twin Engines: FY18 Corporate Update & Financial Results
(Company No.: 7867-P) Powered by Twin Engines Corporate Presentation FY18 Corporate Update & Financial Results 20 September 2018 IR Adviser
Slide 2: Performance Trend
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Scientex successfully doubled up twice in the past 10 years… Revenue Net Profit RM (Million) RM (Million) 2.6 290 Billion Million 3000 300 2500 250 2000 1.2 200 110 Billion 1500 Million 150 0.6 1000 Billion 100 48 Mi
Slide 3: Operations Review & Growth Plans
Powered by Twin Engines OPERATIONS REVIEW & GROWTH PLANS
Slide 4: Operations Review: Overview
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Powered by twin-core business model… to benefit from burgeoning demand for plastic packaging in the region and affordable property in Malaysia 27%* 73% * Property Manufacturing Annual Output Development Product Range
Slide 5: Operations Review: Manufacturing
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix FY18 sees double digit-growth revenue and improving margins… stronger sales performance and maiden KHPI contributions MANUFACTURING PERFORMANCE Revenue (RM ‘m) 14% yoy 23% yoy FY18 revenue growth FY18 EBITDA growth O
Slide 6: Growth Strategies: Manufacturing
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Holistic growth strategies to leverage existing capabilities and harness the best of technology and innovation to catapult Scientex into the global forefront … • KHPI to make full-year contribution
Slide 7: Growth Plans: Manufacturing (US stretch film plant)
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix USD25 mil investment in US stretch film plant commenced operations in Jan 2018 with 30,000 MT annual capacity Commenced operations of new stretch film manufacturing plant in Phoenix, Arizona, U.S.
Slide 8: Growth Plans: Manufacturing (KHPI acquisition)
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Newly-acquired KHPI opens new product segments and dual-brand strategy... also strengthens existing portfolio for larger market share in Asia Pacific Growth Strategies Strengthening consumer 1 packa
Slide 9: Operations Review: Property Development
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Launched record RM1.2 billion in FY18… 85% in affordable priced quality properties PROPERTY DEVELOPMENT PERFORMANCE Revenue (RM ‘m) Maintained 4.5% yoy revenue in FY18 EBITDA growth New Launches (RM ‘m) Marginal dip
Slide 10: Growth Plans: Property Development
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Aggressive landbanking in Peninsular Malaysia in line with Scientex’s cross border growth strategy… sufficient landbank to sustain Group for more than 10 years Notable land acquisitions Location: Rawang, Selangor Loc
Slide 11: FY18 Financial Review
Powered by Twin Engines FY18 FINANCIAL REVIEW
Slide 12: FY18 Income Statement Summary
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Record quarterly revenue and net profit… setting the benchmark for FY2019 performance 4Q18 4Q17 Change RM'mil FY18 FY17 Change Remarks Due ma inl y to hi gher s a les from manufacturi ng s egment, whi ch 733.2 646.1
Slide 13: Revenue & EBITDA Segmentation
Operations Review Growth Strategies Financial Highlights Financial Highlights Investment Merits Appendix Significant manufacturing growth in Group’s FY18 performance from larger capacity… FY17 Group Revenue: RM2,403.1 mil FY18 Group Revenue: RM2,626.8mil 30.5% -1.6% +14.1% yoy 27.5% yoy 69.5% 72.5%
Slide 14: Financial Review: Manufacturing
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Manufacturing segment nearing RM2 billion mark as Group continues to fill up newly expanded capacities and consolidates KHPI’s sales… Manufacturing Revenue & Gross Margin RM’m 14.6% 11.0% 11.1% 11.0% 12.1% 11.7% 9.8%
Slide 15: Financial Review: Property Development
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Group continues to see resilient demand for affordable homes… records higher margins Revenue & Gross Margin RM’m 47.0% 44.2% 44.4% 42.3% 38.5% 39.7% 40.9% • Property development revenue maintained on recognition timi
Slide 16: Balance Sheet (Highlights)
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Strong operational cashflow to contribute towards reduced gearing and fund future plans… As at As at Balance Sheet (RM ‘000) Remarks 31.7.2018 31.7.2017 Property, Plant & Equipment 1,150,608 1,012,570 Investment Prop
Slide 17: Cash Flow vs Asset
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Operating cash flow rising in tandem with enlarging asset base… Net Operating Cash Flow Total Assets Employed RM (Million) RM (Million) 500 4000 450 392.4 3,364.1 3500 400 380.3 322.8 3000 2,577.8 350 2500 2,251.1 30
Slide 18: Investment Merits
Powered by Twin Engines INVESTMENT MERITS
Slide 19: Dividend History
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Proposed final dividend of 10 sen per share to constitute 33.7% payout… in line minimum 30% net profit dividend policy RM’mil 74.0% Dividend History 49.2% 48.0% 49.8% 52.1% 36.6% 36.1% 33.4% 35.9% 31.4% 28.7% 28.8% 3
Slide 20: 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