Sd Guthrie Bhd · MYX:SDG
Sd Guthrie Bhd — Sime Darby Plantation — FY2018 Earnings Presentation
23 slides from Sd Guthrie Bhd's earnings presentation, Aug 30, 2018
Slide 1: FY2017/2018 Results Announcement, Fourth Quarter ended 30 June 2018
FY2017/2018 Results Announcement Fourth Quarter ended 30 June 2018 30 August 2018
Slide 2: Financial Highlights
2 Financial Highlights Weaker performance due to lower non-recurring net gains, partially mitigated by lower finance costs in RM’mn (YoY %) 4QFY2018 FY2018 Revenue 3,084 14,369 4QFY17: 3,686 (-16%) FY17: 14,779 (-3%) PBIT 189 4QFY17: 2,834 (-93%) 2,536 FY17: 4,455 (-43%) Recurring PBIT 472 2,019 4QF
Slide 3: Non-Recurring Items
3 Non-Recurring Items Lower PBIT arising from non-cash impairment charges recognised in RM’mn 4QFY2018 4QFY2017 YoY FY2018 FY2017 YoY Recurring PBIT 472 606 -22% 2,019 2,227 -9% Non-Recurring PBIT -283 2,228 -113% 517 2,228 -77% Non-cash impairment of assets in Liberia -112 -202 -112 -202 Non-cash i
Slide 4: Borrowings & Cash Flow
4 Borrowings & Cash Flow Finance costs in FY2018 were 61% lower than FY2017 as a result of lower borrowings arising from the restructuring of intercompany debts at the point of the demerger and the repayment of loans (RM1,397mn) in FY2018 Gross Gearing1 61% 55% 44% 39% 40% RM2,675mn NET CASH GENERAT
Slide 5: Financial Performance by Segment
5 Financial Performance by Segment A decline in recurring PBIT due to lower profit contribution from the Upstream operations, partially mitigated by better earnings from the Downstream operations Recurring PBIT in RM’mn (YoY %) 4QFY2018 FY2018 Upstream 403 1,699 4QFY17: 620 (-35%) FY17: 2,011 (-16%)
Slide 6: Operational Performance – Upstream: FFB Production
6 Operational Performance – Upstream FFB production in FY2018 grew 5% YoY due to the achievement of the strongest yield performance in Malaysia in the last 5 years in ‘000 MT (YoY %) F F B P RO D U C T I O N FFB production in Malaysia grew 10% YoY in FY2018 on the back of MALAYSIA INDONESIA TOTAL
Slide 7: Operational Performance – Upstream: CPO Extraction Rate
7 Operational Performance – Upstream Marginally lower overall OER in FY2018 in Malaysia and PNG/SI in % (YoY %) C P O E X T R AC T I O N R AT E ( O E R ) INDONESIA TOTAL OER in Malaysia was MALAYSIA UPSTREAM weaker by 1% YoY in FY2018 +2% -1% -3% +0.4% as a result of the increase in 20.34 20.79 20
Slide 8: Operational Performance: Average CPO Price Realised
8 Operational Performance Lower average CPO price realised due to weaker market sentiment in RM/MT (YoY %) AV E R AG E C P O P R I C E R EA L I S E D MALAYSIA INDONESIA TOTAL UPSTREAM -14% -8% -21% -13% -15% -11% 2,823 2,825 2,588 2,721 2,764 2,415 2,161 2,408 2,813 2,848 4QFY17 4QFY18 FY17 FY18 4QF
Slide 9: Financial Performance – Downstream
9 Financial Performance – Downstream Higher PBIT in FY2018 driven by better earnings from the differentiated products business DOWNSTREAM PBIT P B I T BY S E G M E N T in RM’mn DIFFERENTIATED >+100% YoY >+100% YoY >+100% YoY +15% YoY 153 51 76 -14 FY17 FY18 267 4QFY17 4QFY18 232 7 68 BULK -93% YoY -
Slide 10: Operational Performance – Downstream
10 Operational Performance – Downstream Continuous efforts to drive various operational initiatives to manage cost and improve margins Product Ratio Capacity Utilisation (%) Product ratio continues to +31% +9% move towards higher 64 52 58 52 contribution from the differentiated segment in 36 48 42
Slide 11: Acquisition of 100% Equity Interest in Markham Farming Company Limited
11 The acquisition of 100% Equity Interest in Markham Farming Company Limited (MFCL) ST R AT EG I C R AT I O N A L E The oil palm plantation is strategically MFCL is a private limited company incorporated in located close to Lae, PNG’s largest port, PNG which owns: and has the ability to integrate
Slide 12: Acquisition of MFCL: Key Valuation Metrics
12 The acquisition of 100% Equity Interest in Markham Farming Company Limited (MFCL) K E Y VA LUAT I O N M E T R I C S To t a l E n t e r p r i s e Va l u e ( E V ) = U S D 6 3 . 6 m n ( R M 2 6 0 . 7 m n ) OIL PAL M COPRA EV = USD36.5mn (RM149.6mn) EV = USD27.1mn (RM111.1mn) EV/ha Land in Use Area
Slide 13: Memorandum of Understanding between SD Plantation and COFCO
13 Memorandum of Understanding between SD Plantation and COFCO The collaboration is set to create greater demand for certified sustainable palm oil and increase trade volume between the two companies SD Plantation has signed a Memorandum of Understanding with COFCO Group Co. Ltd., a leading agri-pro
Slide 14: Proposed Dividend Reinvestment Plan (DRP)
14 Proposed Dividend Reinvestment Plan (DRP) The Company proposed to establish a dividend reinvestment plan (DRP), which is subject to the relevant regulatory approvals and shareholders’ approval being obtained at an Extraordinary General Meeting, and if approved, may be applied to any future cash d
Slide 15: Proposed Dividend Reinvestment Plan (DRP)
15 Proposed Dividend Reinvestment Plan (DRP) The Company proposed to establish a dividend reinvestment plan (DRP), which is subject to the relevant regulatory approvals and shareholders’ approval being obtained at an Extraordinary General Meeting, and if approved, may be applied to any future cash d
Slide 16: Dividend for the Year Ended 30 June
16 Dividend for the Year Ended 30 June As part of SD Plantation’s dividend policy, the Group targets a dividend payout ratio of not less than 50% of the consolidated profit attributable to the owners of the Company (PATAMI) FY2018 FY2017 Net Per Share Total Net Dividend Net Per Share Total Net Divid
Slide 17: Dividend for the Year Ended 30 June
17 Dividend for the Year Ended 30 June The Group reported net non-recurring PATAMI of RM491 million in FY2018. The following special dividends have also been declared and proposed: FY2018 Net Per Share Total Net Dividend (sen) (RM’mn) Special Interim Dividend 3.0 204 Special Final Dividend 3.0 204 6
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
Plantation Appendix
Slide 20: Segment Revenue
20 Segment Revenue Upstream Upstream Upstream Upstream Other Inter-segment Total Downstream in RM’mn Malaysia Indonesia PNG/SI Liberia Operations Elimination Revenue FY18 FY17 YoY % FY18 FY17 YoY % FY18 FY17 YoY % FY18 FY17 YoY % FY18 FY17 YoY % FY18 FY17 YoY % FY18 FY17 FY18 FY17 YoY % External 1,2
Slide 21: Summary of Operational Statistics
21 Summary of Operational Statistics As at 30 June 2018 (FY2018) Malaysia Indonesia PNG Liberia Group YoY YoY % YoY % YoY % YoY % 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun % 30 Jun 30 Jun ‘18 ‘17 ‘18 ‘17 ‘18 ‘17 ‘18 ‘17 ‘18 ‘17 FFB Production 5.822 5.293 10% 2.615 2.672 -2% 1.731 1.792
Slide 22: Breakdown of Age Profile
22 Breakdown of Age Profile As at 30 June 2018 (FY2018) MALAYSIA INDONESIA GROUP 9% 16% 10% 21% 8% 18% 17% 12.7 yrs 14.1 yrs Average Palm 22% Average Palm 12% Tree Age 38% Tree Age 23% 12.8 yrs Average Palm 35% 19% Tree Age 20% PNG LIBERIA 32% 3% 11% 7% 12% SD Plantation has 599,992 ha 11.4 yrs 5.4
Slide 23: Thank You
THANK YOU SIME DARBY PLANTATION INVESTOR RELATIONS investor.relations@simedarbyplantation.com +(603) 7848 4000 http://www.simedarbyplantation.com/investor-relations