Slide 1: Powered by Twin Engines: 3Q17 Corporate Update & Financial Results
(Company No.: 7867-P) Powered by Twin Engines Corporate Presentation 3Q17 Corporate Update & Financial Results 20 June 2017 IR Adviser
Slide 2: Operations Review & Growth Plans
Powered by Twin Engines OPERATIONS REVIEW & GROWTH PLANS
Slide 3: Operations Review: Manufacturing
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Increasing take up of expanded consumer packaging production capacities mitigating industrial packaging dip… Average monthly sales tonnage (MT ‘000) Industrial Packaging Consumer Packaging Industrial Packaging -4.8%
Slide 4: Operations Review: Manufacturing segment revenue
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Growing CPP and BOPP sales driving contribution from consumer packaging segment… 9M17 manufacturing revenue increased by 4.9% to RM1,234.4 Segment Revenue (RM ‘mil) mil (9M16: RM1,176.8 mil) Industrial Packaging 9M17
Slide 5: Growth Plans: Manufacturing
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Consumer packaging (PE) expansions to fully complete in end-2017… focus on ramping up capacity utilisation Consumer packaging expansion plan CPP Strong pickup from both local and export markets BOPP
Slide 6: USD25 mil investment in U.S. stretch film plant
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix USD25 mil investment in U.S. stretch film plant on track for completion in end- 2017… On 10 November 2016, Scientex announced CAPEX of USD25 mil to set up new stretch film manufacturing plant in Ari
Slide 7: Operations Review: Property
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Launched RM395.0 mil worth of new properties in 9M17… property unbilled sales of approximately RM550 mil 9M17 property revenue rose 12.9% to RM522.7 mil (9M16: RM463.1 mil) Group’s development projects seeing stable
Slide 8: Growth Plans: Property
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Recent landbanking to sustain future launches for next 8 to 10 years… Recent acquisitions 80.0 acres lands in Ipoh (Klebang and Meru) acquired for RM76.7 mil in second half of 2016; estimated GDV of
Slide 9: 3Q17 Financial Review
Powered by Twin Engines 3Q17 FINANCIAL REVIEW
Slide 10: 3Q/9M17 Income Statement Summary
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Take-up of new capacity pushing quarterly revenue and profit to new heights… 3Q17 3Q16 Change RM'mil 9M17 9M16 Change Remarks Driven by hi gher contri buti on i n both manufacturi ng and 636.2 543.9 17.0% Revenue 1,7
Slide 11: Revenue & EBITDA Segmentation
Operations Review Growth Strategies Financial Highlights Financial Highlights Investment Merits Appendix Higher Group EBITDA despite weaker manufacturing contribution… property segment performing strongly on demand for affordable homes 9M16 Group Revenue: RM1,639.9 mil 9M17 Group Revenue: RM1,757.1
Slide 12: Financial Review: Manufacturing
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Consumer packaging segment leading growth…EBITDA declined due to lower product margin Manufacturing Revenue & Gross Margin Manufacturing Revenue (by Segment) RM’mil RM’mil Consumer packaging grew 9.9% on increasing c
Slide 13: Financial Review: Property Development
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Property division benefitting from sturdy demand for affordable homes… Revenue & Gross Margin RM’mil +12.9% 47.0% 44.4% 44.2% 42.3% 38.5% 39.9% 40.8% Property segment revenue rose 12.9% due to stable sales and constr
Slide 14: Balance Sheet (Highlights)
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Strong operational cashflow to reduce borrowings and fund future plans… As at As at Balance Sheet (RM ‘000) Remarks 30.4.2017 31.7.2016 Property, Pl a nt & Equi pment 1,010,640 952,519 Due to i nves tments i nto new
Slide 15: Investment Merits
Powered by Twin Engines INVESTMENT MERITS
Slide 16: Investment Merits
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix A high-growth proposition all-round... attractive proxy to the burgeoning packaging sector and Southern Malaysia’s affordable property market MANUFACTURING PROPERTY DEVELOPMENT • One of the world’s largest stretch fi
Slide 17: Dividend History
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Group has dividend policy of minimum 30% net profit payout… RM’mil 74.0% Dividend History 49.2% 48.0% 49.8% 52.1% 36.6% 36.1% 33.4% 35.9% 31.4% 26.6% 28.7% 28.8% 32.1% 31.7% 30.7% 15.8% 5.9 14.2 17.2 10.8 19.4 25.8 3
Slide 18: Thank You
Powered by Twin Engines Thank You Contacts: Ms. Jocelyn Ng jocelynbnng@scientex.com.my T: 03-5519 1325 Ms. Julia Pong julia@aquilas.com.my T: 03-2711 1391