PPB Group Bhd. · MYX:PPB
PPB Group Bhd — H1 2020 Earnings Presentation
32 slides from PPB Group Bhd's earnings presentation, June 2020
Slide 1: Unaudited Results for the 6 Months Ended 30 June 2020
UNAUDITED RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2020 Disclaimer: The contents of this presentation include materials which may be capable of being interpreted as forward-looking statements. Such statements are merely estimates and targets, based on circumstances and reasonable assumptions which app
Slide 2: Agenda
AGENDA GROUP FINANCIAL HIGHLIGHTS REVIEW OF MAJOR OPERATIONS Financial Performance Key Events in 1H2020 Developments in 2H2020 CAPITAL AND OTHER COMMITMENTS DIVIDEND RECORD SHARIAH-COMPLIANCE STATUS PROSPECTS FOR 2020 2
Slide 3: Group Financial Highlights
GROUP FINANCIAL HIGHLIGHTS 3
Slide 4: Financial Results
FINANCIAL RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2020 (Figures in RM) 1H2020 1H2019 Change Revenue 2.0 bil 2.3 bil -12% Operating Expenses 2.0 bil 2.2 bil -10% Share of Wilmar’s Profit 446.8 mil 309.7 mil 44% PBT 591.1 mil 461.3 mil 28% Profit attributable to 520.0 mil 408.4 mil 27% owners of the pa
Slide 5: Segmental Information: Segment Revenue
SEGMENTAL INFORMATION FOR THE 6 MONTHS ENDED 30 JUNE 2020 1% 1% 3% 4% 15% Total Segment Revenue: RM 2.02 billion Grains & Agribusiness Consumer Products Film Exhibition & Distribution Environmental Engineering & Utilities 76% Investments & Other Operations Property 5
Slide 6: Segmental Information: Segment Profit
SEGMENTAL INFORMATION FOR THE 6 MONTHS ENDED 30 JUNE 2020 30% Total Segment Profit: RM591 million 4% 1% -10% Grains & Agribusiness Consumer Products -1% Film Exhibition & Distribution Environmental Engineering & Utilities Investments & Other Operations 76% Property 6
Slide 7: Review of Major Operations
REVIEW OF MAJOR OPERATIONS Financial Performance Key Events in 1H2020 Developments in 2H2020 7
Slide 8: Grains & Agribusiness: Financial Performance
GRAINS & AGRIBUSINESS FINANCIAL PERFORMANCE - 3% + >100% Revenue Segment Profit 1H20 RM1.59 bil 1H20 RM181 mil 1H19 RM1.63 bil 1H19 RM85 mil Segment revenue decrease due to lower sales volume of flour and feed. Improved segment profit mainly due to higher efficiency and better management of raw
Slide 9: Grains & Agribusiness: Developments in 2H2020
GRAINS & AGRIBUSINESS DEVELOPMENTS IN 2H2020 Construction of a new 500-mt/day wheat flour mill by VFM-Wilmar Flour Mills Co Ltd at its existing factory in Quang Ninh Province, in northern Vietnam at an estimated cost of USD19.7 million. (Expected date of completion : 3Q2021) 9
Slide 10: Consumer Products: Financial Performance
CONSUMER PRODUCTS FINANCIAL PERFORMANCE - 2% + >100% Revenue Segment Profit 1H20 RM326 mil 1H20 RM20 mil 1H19 RM332 mil 1H19 RM3 mil Segment profit was higher due to improved performance of bakery division and one time gain on step-acquisition of FFM Further Processing Sdn Bhd (“FFP”) of RM10 mill
Slide 11: Consumer Products: Key Events in 1H2020
CONSUMER PRODUCTS KEY EVENTS IN 1H2020 On 24 June 2020, FFM entered into an agreement to acquire the entire 70% shareholding in FFP from BRF Foods GmbH for a total consideration of RM31.5 million. The acquisition was completed on 24 June 2020 and FFP is now a wholly-owned subsidiary of FFM. 11
Slide 12: Consumer Products: Key Events in 1H2020
CONSUMER PRODUCTS KEY EVENTS IN 1H2020 The Italian Baker Sdn Bhd launched Massimo Primo sandwich roll in April 2020. 12
Slide 13: Consumer Products: Developments in 2H2020
CONSUMER PRODUCTS DEVELOPMENTS IN 2H2020 Construction of a new production facility for halal-certified frozen food in Pulau Indah for Kart Food Industries Sdn Bhd at an estimated cost of RM22 million. (Expected date of completion : 1Q2021) 13
Slide 14: Film Exhibition & Distribution: Financial Performance
FILM EXHIBITION & DISTRIBUTION FINANCIAL PERFORMANCE - 71% - >100% Revenue Segment (Loss)/Profit 1H20 RM80 mil 1H20 RM(61) mil 1H19 RM274 mil 1H19 RM39 mil Performance was significantly impacted by the closure of cinemas during the MCO period up to 30 June 2020. 14
Slide 15: Film Exhibition & Distribution: Key Events in 1H2020
FILM EXHIBITION & DISTRIBUTION KEY EVENTS IN 1H2020 Adopted the new norm in cinema operating procedures to ensure the safety and well-being of moviegoers and cinema staff. Galaxy Studio JSC, Vietnam opened 1 new cinema :- OPENING LOCATION SCREENS SEATS AREA REGION DATE 10-Jan-2020 CoopXtra Linh
Slide 16: Film Exhibition & Distribution: Developments in 2H2020
FILM EXHIBITION & DISTRIBUTION DEVELOPMENTS IN 2H2020 Develop revenue diversification initiatives to optimise the use of existing GSC assets, such as new media advertising packages, site branding, thematic and experiential events and corporate collaborations. Launched Keepsake, an e-Commerce pla
Slide 17: Environmental Engineering and Utilities: Financial Performance
ENVIRONMENTAL ENGINEERING AND UTILITIES FINANCIAL PERFORMANCE - 18% - 1% Revenue Segment Profit 1H20 RM58 mil 1H20 RM6.9 mil 1H19 RM71 mil 1H19 RM7.0 mil Segment profit decreased mainly due to works delay during the MCO period. 17
Slide 18: Environmental Engineering & Utilities: Key Events in 1H2020
ENVIRONMENTAL ENGINEERING & UTILITIES KEY EVENTS IN 1H2020 Completed one water project in Sarawak and one sewage network pump station in Kuala Lumpur with a total contract value of RM33 million. Secured one water project with a contract value of RM21 million. Order book of RM532 million as at
Slide 19: Environmental Engineering & Utilities: Developments in 2H2020
ENVIRONMENTAL ENGINEERING & UTILITIES DEVELOPMENTS IN 2H2020 Tendered for water projects in Peninsular Malaysia and Sarawak valued at RM413 million. Continue to focus on opportunities in our core sectors. 19
Slide 20: Property: Financial Performance
PROPERTY FINANCIAL PERFORMANCE - 23% - >100% Revenue Segment (Loss)/Profit 1H20 RM22 mil 1H20 RM(4) mil 1H19 RM29 mil 1H19 RM11 mil The lower segment profit was mainly attributable to the lower mall related rental income during the MCO period. 20
Slide 21: Property: Key Events in 1H2020
PROPERTY KEY EVENTS IN 1H2020 The construction of the Megah Rise development has reached the 20th floor on the tower block. 21
Slide 22: Capital and Other Commitments
CAPITAL AND OTHER COMMITMENTS 22
Slide 23: Capital and Other Commitments by Segment
CAPITAL AND OTHER COMMITMENTS BY SEGMENT RM419 mil RM301 mil RM65 mil RM17 mil • Grains & • Film Exhibition & • Property • Consumer Products Agribusiness Distribution & Others • Investments in China • 8 new cinemas in • Continuing upgrading • Construction of new flour mills Malaysia of existing mall
Slide 24: Dividend Record
Eg W PPB GROUP BERHAD DIVIDEND RECORD 24
Slide 25: Dividend Record
DIVIDEND RECORD Payout Ratio Dividend Dividend Dividend Per Share Paid/ Payable Yield Group Company Year (sen) (RM Million) (%) (%) (%) 2020 # - Interim* 8 114 0.4 22 34 2019 - Interim 8 114 1.6 38 94 - Final 23 327 31 441 2018 28 399 1.6 37 89 2017 30 356 1.7 30 93 2016 25 296 1.6 28 81 2015 25 296
Slide 26: Status of Shariah Compliance
STATUS OF SHARIAH COMPLIANCE 26
Slide 27: Status of Shariah Compliance
STATUS OF SHARIAH COMPLIANCE PPB is classified as shariah-compliant based on an updated list of shariah-compliant securities by the Securities Commission's Shariah Advisory Council dated 29 May 2020. 27
Slide 28: Prospects
y PPB GROUP BERHAD PROSPECTS 28
Slide 29: Prospects
PROSPECTS Grains and agribusiness segment weathered through a challenging operating environment, with volatility in grain prices and foreign exchange market. Given this segment is in the production and distribution of essential food products, it has not been significantly impacted by the Covid-19 pa
Slide 30: Prospects
PROSPECTS Film exhibition and distribution segment will continue to be affected by the Covid-19 pandemic as most movie title releases had been deferred to 2021. The management will continue to implement cost optimisation measures and stringent cash flow management to deal with the current challengin
Slide 31: Prospects
PROSPECTS Performance of the Property segment will remain challenging, both in investment properties and property development. Various measures are being put in place to address the reduced footfall in our malls as well as slower sales of properties brought about by the Covid-19 pandemic. The Covid-
Slide 32: | PPB GROUP BERHAD
| PPB GROUP BERHAD