Ioi Corporation Berhad · MYX:IOICORP
Ioi Corporation Berhad — Shareholder Meeting (November 2024)
31 slides from Ioi Corporation Berhad's shareholder meeting presentation, Nov 5, 2024
Slide 1: 55th Annual General Meeting
55th Annual General Meeting 5 November 2024 Presented by Mr. Kong Kian Beng, Group CFO
Slide 2: Group Financial Performance Overview
Group Financial Performance Overview Year ended 30 June FY2024 FY2023 Variances RM Million RM Million % Revenue 9,603.6 11,583.8 (17) Profit before Interest and Tax 1,535.3 1,815.5 (15) Profit before Tax 1,398.5 1,526.0 (8) Underlying profit before tax* 1,380.5 1,781.9 (23) Profit after Tax 1,116.3
Slide 3: Segment Profit Breakdown
Segment Profit Breakdown RM 1.3 mil (*%) - RM 1.1 mil RM 329.3 mil *% (21%) RM 691.0 mil (38%) FY2024 FY2023 RM 1,539.9 mil RM 1,841.2 mil RM 1,209.3 mil RM 1,151.3 mil (79%) (62%) Plantation Resource-based Manufacturing Others *
Slide 4: Segment Profit - Plantation
Segment Profit - Plantation Segment profit (RM Million) RM58.0 mil (5%) Higher profit mainly due to: - Higher FFB production - Higher OER - Higher share of associate results 1,209.3 1,151.3 partially offset by: - Lower CPO & PK price realised FY2024 FY2023 Average CPO price Average PK price FFB Pr
Slide 5: Segment Profit – Resource-Based Manufacturing
Segment Profit – Resource-Based Manufacturing Segment profit Underlying segment profit* Lower underlying segment (RM Million) (RM Million) profit mainly due to: RM361.7 mil (52%) RM457.2 mil (61%) - Lower margins from oleochemical and refining sub-segments 691.0 749.1 mitigated by: 329.3 291.9 -
Slide 6: Balance Sheet
Balance Sheet 12% 13% Year ended 30 June FY2024 FY2023 16% 15% RM Billion RM Billion ASSETS ASSETS Assets 51% 51% FY2024 FY2023 Property, plant and equipment 9.2 9.0 Other long term assets 3.7 3.7 21% 21% Other short term assets 2.8 2.7 Cash and cash equivalents 2.2 2.2 17.9 17.6 2% 12% Equity and L
Slide 7: Capital Expenditure FY2024
Capital Expenditure FY2024 Capital Expenditure (RM Million) Higher capital expenditure mainly RM55.8 mil (9%) due to: - Mill project (Indonesia), in progress - Investment in biogas plant 677.0 621.2 FY2024 FY2023
Slide 8: Equity Repayments
Equity Repayments Total Dividend declared for the financial year ended 30 June 2024 is 9.5 sen per share FY2024 Dividend Dividend per RM Million share (sen) 1st interim 279.2 4.5 Payment on 21 March 2024 2nd interim 310.2 5.0 Payment on 26 September 2024 589.4 9.5
Slide 9: Thank You
Thank You p
Slide 10: IOI’s Sustainability Journey Forward
IOI’s Sustainability Journey Forward “Enhancing Biodiversity Transitioning Together” Dr. Surina Ismail, Chief Sustainability Officer, IOI Corporation Berhad November 5, 2024
Slide 11: IOI’s Approach to Corporate Sustainability
IOI’s Approach to Corporate Sustainability Vision, Pillars & Commitment to Sustainability Sustainability Vision Adopted 6 UNSDGs most relevant to our business We should meet the needs of the present without compromising that of the future generations Some key new commitments of the IOI Sustainabilit
Slide 12: IOI’s Corporation on Climate Change
IOI’s Corporation on Climate Change Decarbonization Pathway to Net Zero by 2040 • Governance • Climate related matter are discussed at the BSC level Task Force on Climate Related • Formation of Climate related Financial Finance Disclosure Committee (CFDC) Disclosure (TCFD) • Strategy • Technology &
Slide 13: Sustainable Agriculture
IOI’s Approach on Environment Enhanced Biodiversity and Ecosystem REGENERATIVE & PRECISION AGRICULTURE • Organic Palm Oil – 1,128 Ha certified • Use of beneficial plants & animals in our estates • Increased OER – ex. 25.2 % for Baturong Mill SAFEGUARDING NATURAL ECOSYSTEMS • Circularity approach hel
Slide 14: IOI’s Approach on Social Issues
IOI’s Approach on Social Issues Enhancing our Wellbeing and Transitioning Together Protecting our Workforce Uplifting our People Expanding our Sharing Prosperity • Preventing Forced Labor • Women & Empowerment Impact through IOI • Harassment Free & Grievance ✓Launched IOI Group WEC • FPIC Foundation
Slide 15: IOI’s Performance & Recognition
IOI’s Performance & Recognition Global Assessments, Ratings and Awards CICM Responsible Care Awards IOI Pan-Century Oleochemicals Sdn Bhd scored Gold in the Community Awareness and Emergency Response Code as well as Employee Health and Safety Code categories Sustainalytics IOI has further improved f
Slide 16: Thank You for your Attention
IOI GROUP Thank You for your Attention rl. é
Slide 17: Responses to Minority Shareholders Watch Group’s Queries
Responses to Minority Shareholders Watch Group’s Queries
Slide 18: Operational and Financial Matters Q1
Operational and Financial Matters Q1. The recent announcement of Budget 2025, which includes a minimum wage hike, new crude palm oil (“CPO”) export tax structure and revised windfall profit levy, to what extent will it impact the Group’s overall cost structure in the financial year ending 2025 (“FY2
Slide 19: Operational and Financial Matters Q1 (cont’d)
Operational and Financial Matters Q1. (cont’d) IOI Response (cont’d): The Group’s existing strategy remains intact as we pursue initiatives to reduce our reliance on manual labour. We are enhancing the land-to-worker ratio through mechanisation and digitalisation, in line with our Five-Year Plan lau
Slide 20: Operational and Financial Matters Q2
Operational and Financial Matters Q2. India has raised the basic import tax on crude and refined edible oils, including palm oil by 20 percentage points which will effectively increase the total import duty on three oils to 27.5% from 5.5%. Imports of refined palm oil, refined soy oil and refined su
Slide 21: Sustainability Matters Q3
Sustainability Matters Q3. The Group’s disclosure of its sustainability performance under Bursa’s prescribed format (Labour practices and standards), the number of substantiated complaints concerning human rights violations increased from two in FY2023 to eight for FY2024. (page 83 of Sustainability
Slide 22: Sustainability Matters Q3 (cont’d)
Sustainability Matters Q3. (cont’d) (b) What was the nature of these eight complaints concerning human rights violations? IOI Response: Out of the eight complaints concerning employee rights violations, seven were received through IOI Mesra and one through the Women and Empowerment Committee (WEC).
Slide 23: Sustainability Matters Q3 (cont’d)
Sustainability Matters Q3. (cont’d) (c) Under the Company’s M3 (Human Rights and Good Labour Practices) (page 34 of Sustainability Report 2024), it was stated that the Company would monitor workers’ rights through a human rights due diligence service provider. Did the service provider above highligh
Slide 24: Sustainability Matters Q3 (cont’d)
Sustainability Matters Q3. (cont’d) (c) (cont’d) IOI Response (cont’d): In response to these findings, we implemented training programmes designed to educate workers about their rights and the grievance mechanisms available to them, to all our plantations in Malaysia and Indonesia, demonstrating our
Slide 25: Sustainability Matters Q3 (cont’d)
Sustainability Matters Q3. (cont’d) (d) What actions have been taken by the Group to avert or mitigate such human rights violations in future? IOI Response: Employee rights is one of the key focuses of our Board Sustainability Committee and the Group Sustainability Steering Committee. We constantly
Slide 26: Sustainability Matters Q4
Sustainability Matters Q4. In the Company’s Sustainability Report 2024 (page 79), it was stated that a human rights due diligence assessment was conducted independently by a service provider in selected estates, with only a 17.82% response rate and over 80% positive responses for several key indicat
Slide 27: Sustainability Matters Q4 (cont’d)
Sustainability Matters Q4. (cont’d) (b) Was the assessment conducted in areas where human rights issues have been reported in Question 3? IOI Response: Yes. The assessment questions cover accessibility to medical treatment, living conditions, discrimination, fair treatment, etc.
Slide 28: Sustainability Matters Q4 (cont’d)
Sustainability Matters Q4. (cont’d) (c) We note that the Company decided not to expand this assessment to its operations in Sabah. We recommend conducting a more comprehensive assessment across all areas, as each location may face unique challenges that differ from one region or estate to another. I
Slide 29: Corporate Governance Matters Q5
Corporate Governance Matters Q5. As at 30 August 2024, the Board of Directors (“Board”) has 43% female representation and the Board will endeavour to maintain a minimum of 30% women as members of the Board. (page 107 of Annual Report 2024) (a) In terms of Board diversity, what benefits has the Board
Slide 30: Corporate Governance Matters
Corporate Governance Matters IOI Response (cont’d): The participation of women directors on the Board has brought several key advantages that positively impact Board performance, as follows:- (i) They bring unique viewpoints and varied experiences, fostering a balanced and comprehensive approach to
Slide 31: Corporate Governance Matters
Corporate Governance Matters IOI Response (cont’d): (ii) Dato’ Kong and Datuk Zurinah often demonstrate meticulous attention to detail and a structured, process-oriented approach within the ARMC and GNRC. Their contributions have elevated governance standards, reinforcing accountability and enhancin
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