Genting Plantations Bhd. · MYX:GENP
Genting Plantations Bhd — Shareholder Meeting (September 2021)
61 slides from Genting Plantations Bhd's shareholder meeting presentation, Sep 21, 2021
Slide 1: Postponed 43rd AGM 21 September 2021
rd Postponed 43 AGM 21 September 2021 Copyright© 2021 Genting Plantations Berhad 197701003946 (34993-X). All Rights Reserved.
Slide 2: Revenue registered 10% growth, EBITDA 36% higher
Revenue registered 10% growth EBITDA 36% higher Financial Performance Revenue EBITDA • Stronger global palm products 3,000 800 prices 2,500 600 Others 2,000 RM in millions Downstream manufacturing • 5% lower FFB 1,500 400 Property production 1,000 200 Plantation • Declined 500 property sales - - • L
Slide 3: Slide 3
Slide 4: Favourable palm products prices in 2020
Favourable palm products prices in 2020 Weighed down by 5% decline in FFB production Revenue Average selling price FFB production Malaysia Indonesia 2,300 1,600 3,000 RM in millions 1,200 2,200 2,500 800 2,100 2,000 In 000's mt 400 RM/MT 2,000 - 1,500 2019 2020 1,900 EBITDA 1,000 600 1,800 RM in mil
Slide 5: Replanting in Malaysia to sustain favourable age profile
Replanting in Malaysia to sustain favourable age profile 2020 planted area Projected replanting areas in Malaysia 5,000 Immature 12,000 ha 4,000 20% Replanting area (ha) 3,000 159,521ha 2,000 Mature 80% 1,000 Average palm age: - 11.7 years 2017 2018 2019 2020 2021 2022 2023 2024 2025
Slide 6: Indonesia milling capacity expanded
Indonesia milling capacity expanded 2022 2020 370 tph 50 tph 2018 255 tph 420 tph 2019 Note: tph denotes metric tonnes per hour 285 tph
Slide 7: Sustainability certifications
Sustainability certifications 05 • 19/32 Estates • 1/1 Refinery RSPO • 7/12 Oil Mills • 2/2 Biodiesel Plants • 20/20 Estates • 1/1 Refinery ISCC • 7/7 Oil Mills • 2/2 Biodiesel Plants • 20/20 Estates • 1/1 Refinery MSPO • 7/7 Oil Mills • 2/2 Biodiesel Plants • 3/12 Estates ISPO • 2/5 Oil Mills
Slide 8: Sustainability – Achievements and Events
Sustainability – Achievements and Events Keruak Wildlife Corridor - Elephant Tagging The rangers of Sabah Wildlife Borneo Pygmy Elephant (Elephas Signboard of the Keruak Wildlife Corridor Department ensuring Vina is handled in maximus) that inhabits north-eastern installed at site an appropriate and
Slide 9: Sustainability – Achievements and Events
Sustainability – Achievements and Events Borneo Orangutan Survival Foundation
Slide 10: Sustainability – Achievements and Events
Sustainability – Achievements and Events Systematic Occupational Health Enhancement Programme – Do It Yourself 2020 (“SOHELP DIY 2020”) Senior Assistant Manager of SOHELP DIY 2019/2020 award Group photo with all SOHELP DIY winners Genting Sri Gading Estate at the ceremony (Category 1-5), DOSH Direct
Slide 11: Sustainability – Achievements and Events
Sustainability – Achievements and Events Recognition by local government
Slide 12: Sustainability – Ratings
Sustainability – Ratings FTSE4Good Bursa Malaysia ZSL SPOTT Ranking Bursa Malaysia’s rating Sustainability Reporting 73%, ranked 21 out of 100 Review ESG rating 2.9 out of 5.0 companies Ranked Tier I
Slide 13: Moving Forward – Environment, Social and Governance
Moving Forward – Environment, Social and Governance Embrace ESG principles Current Best Practices: • Adhere to international and local regulations • Obtain relevant certifications • Adopt good agronomic & environmental friendly practices • Adopt & constantly review labour practices
Slide 14: Property
Property
Slide 15: Prudent approach amidst soft property market conditions
Prudent approach amidst soft Imposition of the MCO from property market conditions Mar’20 to May’20 Home Ownership Construction Campaign from completed ahead Property sales Jun’20 to Dec’21 of schedule 200 Nov’20 – New launch of 160 Double-storey Oct’20 – New houses in } -42% RM in millions 120 laun
Slide 16: New launches
New launches Feb’21 Iris Homes 2 Bungalows and Semi-detached RM760,000 to RM955,000 Jul’21 Sep’21 Genting Pura Kencana Bungalows Genting Pura Kencana RM770,000 Semi-detached houses RM815,000
Slide 17: Property Landbank
Property Landbank Genting Indahpura in Kulai, Johor Genting Pura Kencana in Batu Pahat, Johor AEON Mall Foon Yew High School JPO Genting Pura Genting Kencana Indahpura Segambut Land in Kuala Lumpur Sentul City Land in Bogor, Greater Jakarta Genting Dementia Care Centre Ikea Sentul City Segambut Land
Slide 18: Premium Outlets impacted by pandemic
Premium Outlets® impacted by pandemic Johor Premium Outlets ® Share of JV Profit 50 - 39% Genting Highlands Premium Outlets ® 40 RM in millions 30 20 10 - 2019 2020 Genting Highlands Premium Outlets ® Johor Premium Outlets ®
Slide 19: Genting Highlands Premium Outlets
GENTING HIGHLANDS PREMIUM OUTLETS® Ball Watch on 8 August 2020 Sephora on 31 October 2020 Famous Amos on 20 February 2021 Football Republic on 6 March 2021 Moto Guzzi on 28 March 2021. Suite expansion on 21 April 2021
Slide 20: Johor Premium Outlets
JOHOR PREMIUM OUTLETS® Fendi on 29 August 2020 Burberry on 13 October 2020 Steve Madden on 24 December 2020
Slide 21: Johor Premium Outlets
JOHOR PREMIUM OUTLETS® Balenciaga on 25 February 2021 Coleman on 12 May 2021 Montbell on 12 May 2021 Valentino on 25 August 2021
Slide 22: Downstream Manufacturing
<a Downstream Manufacturing
Slide 23: Satisfactory performance amidst challenging environment
Downstream Manufacturing Satisfactory performance amidst challenging environment 8% revenue growth Improvement… Energy cost saving with LNG … amidst unfavorable biodiesel export, delay in biodiesel • Biodiesel plant started using LNG in 3Q 2020; mandate, lower palm oil demand in 1H’20 • The 2nd plan
Slide 24: Biotechnology
Biotechnology
Slide 25: Marker-Driven High Yielding Planting Materials
Marker-Driven High Yielding Planting Materials 3-fold increase in 2-fold increase in SIRIM-certified production mother palms High Yielding Seeds Early yield >20% above About 600 hectares gold standard commercially planted
Slide 26: Microbial Solutions for Plant Growth and Disease Control
Microbial Solutions for Plant Growth and Disease Control Environmental- 3-fold increase in friendly biological Group adoption product 25% reduction Continuous inorganic research fertiliser development 17% Repertoire of yield increment microbes for suite of solutions
Slide 27: Embarking into AgTech Journey
Embarking into AgTech Journey Maximising Productivity and Profitability through Precision Agriculture Semi-detailed Soil Weather ▪ New paradigm of data Map & Soil Analysis 2 Stations collection via IoT sensors ▪ Higher resolution of soil for Advanced-AI map & soil series modelling. 3 identification
Slide 28: Data-Driven Plantation Initiatives
Remote Sensing Revolutionising plantation operation Data-Driven Plantation Initiatives Integrated Solutions from each seed to every field Drone Monitoring Geotagging of Individual Palm Weather Station Site-specificity Wireless Connectivity Artificial Intelligence Marker-driven Data Modelling Plantin
Slide 29: Awards: Putra Brand Awards and Asiamoney Poll 2020
Silver winner for Putra Brand Awards 2020 Asiamoney – Asia’s Outstanding Companies 2020 Poll Premium Outlets® - Silver winner for “Transportation, Travel & Tourism” category Asia’s Most Outstanding Company in Malaysia – Plantation Sector
Slide 30: Thank you / Disclaimer
Thank you Disclaimer Some of the statements made in this presentation which are not statements of historical facts are forward-looking statements and are based on the current beliefs, assumptions, expectations, estimates, objectives and projections of the directors and management of the GENP Group (
Slide 31: Postponed 43rd AGM
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS
Slide 32: Question 1: vouchers for attending the AGM
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 1. We have received questions from shareholders pertaining to requests for vouchers for attending the AGM.
Slide 33: Response: dividends declared for FY2020
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response We believe in rewarding all our loyal shareholders through dividends. To that effect, the total dividend declared for FY2020 amounts to 21.0 sen per ordinary share, which is an increase of 62% compared to FY2019.
Slide 34: Question 2: ESG expenditure
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 2. What is the total expenditure allocated per year in pursuing the Environment, Social and Governance (ESG) activities under the Sustainability Program?
Slide 35: Response: ESG initiatives
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response GENP is committed to its ESG initiatives especially the need to ensure sustainable development, environment protection and social wellbeing of the surrounding community. There is no fixed allocation in terms of total expenditu
Slide 36: Question 3: Director meeting allowances
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 3. Are Directors attending this virtual AGM being paid meeting allowances?
Slide 37: Response: no meeting allowance
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response Our directors are not paid a meeting allowance to attend AGM whether in person or virtually.
Slide 38: Question 4: virtual AGM cost savings
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 4. What is the cost-savings for conducting this virtual AGM compared to last year virtual AGM and also to previous year’s physical AGM?
Slide 39: Response: virtual AGM cost savings
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response In general, there are some cost savings in conducting the AGM virtually as compared to the last physical AGM in 2019, of which savings were mainly from costs relating to the physical venue’s facilities.
Slide 40: Question 5a: Indonesia planted area
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 5. All my questions are about Indonesia Plantation Division ONLY for FY2020: a) What is the total planted area for the respective Nucleus and Plasma Scheme? How many hectares are mature and immature?
Slide 41: Response: total planted area
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response We do not segregate the Plantation operations into geographical segment for reporting purpose. On Group basis, our total planted area is 159,721 hectares. The breakdown for the mature and immature hectarage of the planted area
Slide 42: Question 5b: FFB production and prices
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 5. b) What is the total FFB production volume, oil extraction rate and average selling price per mt?
Slide 43: Response: FFB production, extraction rate, price
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response The Group’s total FFB production is about 2.08 million mt, oil extraction rate is at 21.3%, whilst average selling price was RM2,511 per mt.
Slide 44: Question 5c: revenue, EBITDA, net profit
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 5. c) What is the Total Revenue, EBITDA and Net Profit for FY2020?
Slide 45: Response: plantation revenue, EBITDA, profit
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response Total revenue for the Group’s Plantation Division is about RM1,459 million, Adjusted EBITDA is RM527 million and net operating profit is RM378 million.
Slide 46: Question 5d: outstanding debts
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 5. d) What is the Total outstanding debts (in respective currencies) as the end FY2020?
Slide 47: Response: plantation debts
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response The total outstanding debts for Plantation Division as a whole is approximately USD337 million and RM489 million.
Slide 48: Question 6: biodiesel plant in Indonesia
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 6. We understood Indonesia government is having a big plan for biodiesel fuel. Based on Company experiences at Sabah, it is commercially viable for the company to venture into biodiesel plant at Indonesia?
Slide 49: Response: no biodiesel plans in Indonesia
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response At the present moment, we do not have any plans to operate a biodiesel plant in Indonesia. However, we will consider when the opportunity arises and assess if it is feasible to do so.
Slide 50: Question 7: downstream investment in Indonesia
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 7. Indonesia imposed high export duty on CPO. Will GENP intend to invest downstream at Indonesia?
Slide 51: Response: no downstream plans in Indonesia
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response At the present moment, we do not have any plans to invest downstream in Indonesia. However, we will consider when the opportunity arises and the timing is right.
Slide 52: Question 8: digital banking
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 8. Is GENP venturing into digital banking?
Slide 53: Response: not venturing into digital banking
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response GENP is not venturing into digital banking.
Slide 54: Question 9: plasma land
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 9. Referring to page 26 of the annual report, the total planted plasma land has increased from 15,854 ha to 20,296 ha, which the additional land seems to transfer from our company planted land. Understand that plasma lands are the land tha
Slide 55: Response: plasma land transfers
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response a) GENP transfers developed land to plasma schemes progressively when the planted areas are ready to be harvested. To date, all subsidiaries that are obligated to allocate plasma areas have done so accordingly. As at 31 Decemb
Slide 56: Response: plasma scheme explained
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response b) The plasma scheme is a requirement by the Indonesian Government. All plantation companies are to allocate no less than 20% of its developed land for the benefit of local communities via the plasma schemes. All land developm
Slide 57: Question 10: unplanted land
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 10. Our company still have 76,913 ha of unplanted lands, and the new planting on these lands seems to be slow over the past few years. a) What are the plans for these unplanted lands? b) Are these lands plantable?
Slide 58: Response: plans for unplanted land
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response The unplanted land will be planted where possible, subject to the area undergoing a series of approvals and assessments. Prior to any land development, the Group would ensure that the land has obtained all necessary approvals,
Slide 59: Question 11: average palm age
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS 11. What is the average age of our matured oil palm in Malaysia and Indonesia separately? Can management please provide the detailed age profile of our palm plantation in Malaysia and Indonesia separately?
Slide 60: Response: average age profile
POSTPONED 43RD AGM PRE-SUBMITTED QUESTIONS FROM SHAREHOLDERS Our Response As mentioned in the earlier response, we do not segregate the Plantation operations into geographical segment for reporting purpose. On Group basis, our average age profile is about 12 years as at 31 December 2020.
Slide 61: Thank you
POSTPONED 43RD AGM THANK YOU 31
Genting Plantations Berhad — Shareholder Meeting (September 2021) on 6ix