Sd Guthrie Bhd · MYX:SDG
Sd Guthrie Bhd — Sime Darby Plantation — Q1 2019 Earnings Presentation
22 slides from Sd Guthrie Bhd's earnings presentation, May 31, 2019
Slide 1: First Quarter ended 31 March 2019 Results Announcement
Financial Year Ending 31 December 2019 Results Announcement First Quarter ended 31 March 2019 31 May 2019
Slide 2: Change in Financial Year End to 31 December
2 Change in Financial Year End to 31 December Q1 ENDED QUARTER ENDED 31 MARCH 2019 31 MARCH 2018 Due to the change in the financial year, the performance of the current quarter ended 31 Mar 2019 (Q1 FY2019) is not comparable with the first quarter of the previous financial year ended 30 Jun 2018 (Q1
Slide 3: Financial Highlights
3 Financial Highlights Lower earnings attributable to the sharp decline in CPO & PK prices mitigated by improved earnings from Downstream and operational efficiencies in RM’mn Q1 FY2019 QE Mar 2018 YoY % Revenue 3,006 3,659 -18% PBIT 180 390 -54% Recurring PBIT 180 362 -50% Non-Recurring PBIT - 28 P
Slide 4: Financial Performance by Segment
4 Financial Performance by Segment Lower PBIT on the back of weaker Upstream earnings mitigated by higher contribution from Downstream in RM’mn Recurring PBIT Q1 FY2019 QE Mar 2018 YoY % TOTAL PBIT -54% YoY Upstream 83 283 -71% 390 180 Upstream Malaysia 113 253 -55% 28 Upstream Indonesia 9 11 -18% U
Slide 5: Recurring Profits: Q1 FY2019 vs QE Mar 2018
5 Recurring Profits Lower YoY recurring profits wholly due to lower CPO and PK realised prices Q1 FY2019 vs QE Mar 2018 in RM’mn 217 Net positive impact on PBIT 108 -30 -399 91 28 Others PBIT Cost to 20 Higher customer OER Higher Higher FFB (+2% YoY) (-8% YoY) Downstream production 579 362 results (
Slide 6: Recurring Profits: Q1 FY2019 vs QE Dec 2018
6 Recurring Profits Lower QoQ recurring profit largely due to lower seasonal FFB production Q1 FY2019 vs QE Dec 2018 in RM’mn -57 Net negative impact on PATAMI -10 -51 Lower Downstream P ATA M I results 16 (-13% QoQ) 7 5 -9 1 115 Cost to Others Lower • Higher CPO prices Lower FFB Higher customer rea
Slide 7: Borrowings & Gearing Ratios
7 Borrowings & Gearing Ratios Increased borrowings from RM7.3bn (31 Dec 2018) to RM7.5bn due to lower cash generated from operations as a result of weaker CPO & PK prices realised, mitigated by the stronger RM against USD & EUR Gross Gearing1 39% 40% 43% 46% 46% RM594mn -RM454mn -RM208mn NET CASH GE
Slide 8: Operational Performance – Upstream: FFB Production
8 Operational Performance – Upstream Higher FFB production driven by productivity improvements in all regions in ‘000 MT (YoY %) FFB PRODUCTION Malaysia: FFB production was 2% higher YoY due to a boost in MALAYSIA INDONESIA productivity with 4% higher YoY hectarage of trees moving into prime +2% +
Slide 9: Operational Performance – Upstream: CPO Extraction Rate
9 Operational Performance – Upstream Improved OER largely attributable to the Malaysian and Indonesian operations in % (YoY %) CPO EXTRACTION RATE (OER) Malaysia: OER improved by 3% YoY as a result of efficient MALAYSIA INDONESIA crop evacuation on the back +3% +1% of favourable weather conditions
Slide 10: Operational Performance – Upstream: Average CPO Price Realised
10 Operational Performance – Upstream The performance was affected by weaker CPO prices realised which are expected to remain subdued under the current challenging external environment in RM/MT (YoY %) AVERAGE CPO PRICE REALISED MALAYSIA INDONESIA -19% -12% TOTAL 2,480 1,998 UPSTREAM 2,270 2,002 -18
Slide 11: Impact of Lower CPO and PK Prices on Profit
11 Impact of lower average CPO and PK prices realised on our profit in RM’mn Q1 FY2019 QE Mar 2018 YoY % IMPACT ON PBIT IMPACT ON PATAMI -50% YoY -67% YoY 182 362 399 Recurring Profit 180 223 149 297 74 QE Mar 18 Q1 FY19 Impact of lower QE Mar 18 Q1 FY19 Impact of lower average CPO & average CPO & P
Slide 12: Financial Performance – Downstream
12 Financial Performance – Downstream Stronger PBIT driven by higher earnings from bulk products, differentiated products and trading operations Recurring PBIT in RM’mn (YoY %) DOWNSTREAM Performance from the bulk products business was 83% higher YoY largely +31% due to higher sales volume and bet
Slide 13: Operational Performance – Downstream
13 Operational Performance – Downstream Higher sales volume and increased margins driven by the bulk products business, particularly in Indonesia in % 50 61 PRODUCT RATIO Increase in bulk products driven by our 50 39 Indonesian operations on the back of QE Mar 18 Q1 FY19 higher demand and better m
Slide 14: Continued Improvements in Operational Efficiencies
14 Continued Improvements in Operational Efficiencies Our strategic initiatives continue to yield positive results Replanting Crop Strategic with Superior Wa te r Quality Cost Priorities Planting Management Improvements Management Materials SD Premium Genome Select 2,071 ha irrigated1 Improving
Slide 15: Asset Monetisation Exercise
15 Asset Monetisation Exercise Ongoing asset monetisation exercise for land sales and poor performing assets The Group carried out a tender exercise in March 2019 on several parcels of land identified with potential for: • Property development • Government infrastructure projects The Group targets t
Slide 16: Sustainability – Towards No Deforestation
16 Sustainability – Towards No Deforestation A pioneering initiative for our supply chain SD Plantation has a long We created ‘CROSSCHECK’ track record in responsible as a tool for ANYONE to trace production of palm oil. our supply to the mill level We need to step up to this and check whether palm
Slide 17: Advancing the Business and Human Rights Agenda
17 Advancing the Business and Human Rights Agenda A testament to the great strides we have made to act beyond compliance with our human rights commitments, due diligence efforts, risk management and overall corrective actions HUMAN RIGHTS Sime Darby Plantation has been ranked 1st among 250 listed DI
Slide 18: Disclaimer
18 Disclaimer This document is strictly confidential to the recipient. It is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. Upon request, you shal
Slide 19: Appendix
APPENDIX Plantation
Slide 20: Summary of Operational Statistics
20 Summary of Operational Statistics As at 31 March 2019 Malaysia Indonesia PNG Liberia Group For the 3 Months Ended YoY % YoY % YoY % YoY % YoY % 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 FFB Production 1.399 1.367 2% 0.5
Slide 21: Breakdown of Age Profile
21 Breakdown of Age Profile As at 31 March 2019 MALAYSIA INDONESIA GROUP 9% 11% 19% 21% 9% 17% 18% 12.5 yrs 14.1 yrs Average Palm Average Palm Tree Age 21% 36% Tree Age 15% 22% 12.8 yrs Average Palm 34% 17% Tree Age 21% PNG LIBERIA 30% 5% 12% 1% 13% SD Plantation has 602,527 ha 11.9 yrs 6.4 yrs Aver
Slide 22: Thank You
THANK YOU SIME DARBY PLANTATION INVESTOR RELATIONS investor.relations@simedarbyplantation.com +(603) 7848 4000 http://www.simedarbyplantation.com/investor-relations
Sime Darby Plantation — Q1 2019 Earnings Presentation on 6ix