Th Plantations Bhd. · MYX:THPLANT
Th Plantations Bhd — Shareholder Meeting (May 2024)
41 slides from Th Plantations Bhd's shareholder meeting presentation, May 6, 2024
Slide 1: 50th Annual General Meeting
•L 50th ANNUAL GENERAL MEETING 6 May 2024 PRESENTATION BY MOHAMED ZAINURIN MOHAMED ZAIN Chief Executive Officer 1
Slide 2: Table of Contents
TABLE OF CONTENTS CONTENTS 1 OVERVIEW 2 FINANCIAL PERFORMANCE 3 OPERATIONAL PERFORMANCE 4 TRANSFORMATION INITIATIVES 5 OUTLOOK & THP 5-Year Strategic Plan AL-FALAH 22/22 6 CONCLUSION 2
Slide 3: Overview: Shareholding FY2023, Business Model, Workforce
OVERVIEW Shareholding FY2023 MARKET CAP SHARE PRICE 73.84% As at 02/05/2024 RM 570.08 Mil RM 0.65 26.16% 31 Dec 2023 RM 433.09 Mil RM 0.49 PUBLIC 31 Dec 2022 RM 441.94 Mil RM 0.53 CURRENT BUSINESS MODEL WORKFORCE 30 Mac 2024 Executive & Above 261 Oil Palm, Support (Clerical & Non- Rubber & Processin
Slide 4: Overview: THP Group Landbank
OVERVIEW THP GROUP THP Group Landbank 97,781Ha Ʃ Subsidaries = 25 38 Estates Ʃ Workforce = 6,206 6 Palm Oil Mills with 225 Mt/Hour Ʃ Landbank = 97,781 Peninsular 13,453 Ha Sabah 25,643 Ha Sarawak 51,756 Ha Indonesia 6,929 Ha Ʃ Planted Area = 66,095 Ha Oil Palm 55,715 Ha Rubber & Teak 10,380 Ha Indic
Slide 5: Overview: 2022 vs 2023 Performance
OVERVIEW 2022 2023 Variance Marginal CONCLUSION: CPO PRODUCTION 154,470 Mt 153,576 Mt (0.0058%) OPERATIONALLY THP FFB PRODUCTION 695,824 Mt 787,741 Mt 13% PERFORMED 13-15% BETTER FROM PREVIOUS FY YIELD 13.21 Mt/Ha 15.18 Mt/Ha 15% AVERAGE CPO PRICE RM 4,476 /Mt RM 3,669/Mt 22% MARKET PRICE PULLED US
Slide 6: Table of Contents
TABLE OF CONTENTS CONTENTS 1 OVERVIEW 2 FINANCIAL PERFORMANCE 3 OPERATIONAL PERFORMANCE 4 TRANSFORMATION INITIATIVES 5 OUTLOOK & THP 5-YEAR STRATEGIC PLAN: AL-FALAH 22/22 6 CONCLUSION 6
Slide 7: THP 2023 Financial Performance
THP 2023 FINANCIAL PERFORMANCE NET DEBT REVENUE PAT PATAMI TO EQUITY DIVIDEND RATIO 2.0 sen RM 752.03m RM 60.10m RM 46.62m 0.58X (RM17.68m) FY22: FY22: FY22: FY22: FY22: 3.0 sen RM 881.26m RM 87.94m RM 68.77m 0.60X (RM26.5m) 7
Slide 8: Borrowings & Gearing Ratio
BORROWINGS & GEARING RATIO Net Gearing Ratio and Borrowings have reduced. FY2023 FY2022 YoY Variance 3.3 % Net Gearing (times) 0.58 0.60 improvement 3.5% Borrowings RM 827mil RM 856mil reduction FY2023 – THP’s generate healthy cash from operation to support its financing activities. RM 135 mil -RM 7
Slide 9: Key Financial Ratio
KEY FINANCIAL RATIO 16 14.75 14 12 10 8 7.78 6.75 6 4 3.29 3.07 2.05 2 0.81 0.79 0 EPS (SEN) PRICE TO EARNING RATIO NET DIVIDEND PAYOUT (%) NET ASSETS PER SHARE (RM) (times) 2023 2022 9
Slide 10: Table of Contents
TABLE OF CONTENTS CONTENTS 1 OVERVIEW 2 FINANCIAL PERFORMANCE 3 OPERATIONAL PERFORMANCE 4 TRANSFORMATION INITIATIVES 5 OUTLOOK & THP 5-YEAR STRATEGIC PLAN : AL-FALAH 22/22 6 CONCLUSION 10
Slide 11: THP 2023 Operational Performance
THP 2023 OPERATIONAL PERFORMANCE MILL FFB CPO YIELD OER KER UTILISATION PRODUCTION PRODUCTION RATE 787,741 Mt 153,576 Mt 15.18 Mt/Ha 19.17% 4.92% 63.40% FY22: FY22: FY22: FY22: FY22: FY22: 695,824 Mt 154,470 Mt 13.21 Mt/Ha 19.19% 4.79% 63.70% 11
Slide 12: Land Bank & Area Statement by Region FY2023
LAND BANK & AREA STATEMENT BY REGION FY2023 Approximately 68% of the land area is planted. OTHERS/ TOTAL IN-COURSE PLANTED MATURE IMMATURE IDLE LAND OF PLANTING AREA LANDS BANK REGION OIL PALM (Ha) Semenanjung 11,637 787 499 12,923 530 13,453 Sabah 6,847 1,474 750 9,071 859 9,930 Sarawak 31,576 - 33
Slide 13: Age Profile
AGE PROFILE Approximately 91% of the oil palm is producing fruitlets. 66% is at its prime mature stage. An ideal planted age profile FY2023 OIL PALM Old Mature (26> FY2023 FY2022 FY2021 Mature (19-25 years) Immature AGE PROFILE /HA years) 2% 7% Young Mature 3,840 4,296 4,910 13% Immature (4-8 years)
Slide 14: THP Operational Performance vs MPOB Average
THP OPERATIONAL PERFORMANCE VS MPOB AVERAGE THP recorded higher FFB yield in Peninsular Malaysia and Sabah compared to MPOB average. Sarawak estates’ consolidation activities has shown good improvements in FFB yield towards closing the gap with MPOB average. THP MPOB FFB Yield OER (%) KER (%) FFB Yi
Slide 15: Table of Contents
TABLE OF CONTENTS CONTENTS 1 OVERVIEW 2 FINANCIAL PERFORMANCE 3 OPERATIONAL PERFORMANCE 4 TRANSFORMATION INITIATIVES 5 OUTLOOK & THP 5-YEAR STRATEGIC PLAN: AL-FALAH 22/22 6 CONCLUSION 15
Slide 16: Transformation Phase Highlights
TRANSFORMATION PHASE HIGHLIGHTS PROGRAMMES Scheduled Replanting Asset Consolidation & Increase Fresh Fruit 1 2 3 Programme Rehabilitation Bunches Purchase Improve Agronomic Input Effective Manpower 4 5 6 Promote Biogas Production and Quality Capability & Knowledge GOVERNANCE PRACTICES Sustainable Pr
Slide 17: Programme: Scheduled Replanting Programme
PROGRAMME: SCHEDULED REPLANTING PROGRAMME Scheduled Replanting Programme to ensure optimum oil palm age profile. Replanting Policy : Maximum 5% of matured area with palms above 25 years of age. : Maintaining an immature area of approx. 15% TOTAL REPLANTING AREA : 1,535 Ha Felling chipping and stacki
Slide 18: Programme: Asset Consolidation & Rehabilitation
PROGRAMME: ASSET CONSOLIDATION & REHABILITATION Strive to improve yields and overall profitability. • Consolidation and Rehabilitation programme includes upkeep & weeding, improving roads & bridges, soil conservation, pest & disease control, water management and optimal fertiliser application. Ladan
Slide 19: Programme: Increase FFB Purchase
PROGRAMME: INCREASE FRESH FRUIT BUNCHES (FFB) PURCHASE A Two-Pronged Strategy: Optimising Mills Capacity & Strategic Partnership Programme with Local Smallholders. 1. Aggressive management in outsourcing and purchasing of external Fresh Fruit Bunches (”FFB”) from Local Smallholders at fair price, ca
Slide 20: Programme: Improve Agronomic Input and Quality
PROGRAMME: IMPROVE AGRONOMIC INPUT AND QUALITY Implemented a fertiliser programme to maximise manuring application. Maintain a suitable water-table depth. Retain soft grasses in fields as a natural groundcover. Ensure optimum number of fronds and pruning. Maintain good cover crops in immature and yo
Slide 21: Programme: Effective Manpower Capability & Knowledge
PROGRAMME: EFFECTIVE MANPOWER CAPABILITY & KNOWLEDGE Increased the efficiency of our workforce by fostering innovation and cultivating a culture of continuous improvement. • Realigned the Performance Management System. • Introduced THP Group's One Page Strategy and Management & Monitoring System. •
Slide 22: Programme: Promote Biogas Production
PROGRAMME: PROMOTE BIOGAS PRODUCTION Commitment to reduce GHG emissions • Established a joint venture company with Cenergi RE Sdn Bhd for a biogas power plant project. • This signifies our commitment to reducing GHG emissions in our day-to- day mill operations. • A quota of 1.2 megawatts plant was a
Slide 23: Governance Practices: MSPO & MSPO SCCS Certification
GOVERNANCE PRACTICES: SUSTAINABLE PRACTICES & COMPLIANCE MSPO & MSPO SCCS CERTIFICATION • All of our estates and mills are MSPO and MSPO SCCS certified. • Kota Bahagia Palm Oil Mill has been certified by International Sustainability & Carbon Certification (ISCC) under ISCC EU: Point of Origin Scope
Slide 24: Governance Practices: Economic Initiatives
GOVERNANCE PRACTICES: SUSTAINABLE PRACTICES & COMPLIANCE ECONOMIC INITIATIVES Series of talks were We introduced a conducted by sustainability external speakers, assessment as part from Malaysian Anti- of our Corruption pre-qualification Commission process to drive (”MACC”), to sustainability increa
Slide 25: Governance Practices: Environment Initiatives
GOVERNANCE PRACTICES: SUSTAINABLE PRACTICES & COMPLIANCE ENVIRONMENT INITIATIVES We initiated High Coastal forest and Conservation Value peatlands (”HCV”) training in conservation collaboration with the programme at Gunung Malaysian Palm Oil Arong Forest Reserve Green Conservation Mersing, Johor. Fo
Slide 26: Governance Practices: Social Initiatives
GOVERNANCE PRACTICES: SUSTAINABLE PRACTICES & COMPLIANCE SOCIAL INITIATIVES Conduct Compliance Visits Enhanced housing in accordance with conditions for OSH Act 1994, to employees. improve existing systems. Basic First Aider training at the THP Fire Drill at TH Group Selborn Tower Headquarters 26
Slide 27: Enhance Enterprise Risk Management Framework & Policies
ENHANCE THE ENTERPRISE RISK MANAGEMENT FRAMEWORK & POLICIES & STANDARD OPERATING PROCEDURES Enhancement the Enterprise Risk Enhance Policies & Standard Operating Management Framework Procedures OPERATING 27
Slide 28: Systems: Optimise Utilisation of Mill By-Products
SYSTEMS: OPTIMISE UTILISATION OF MILL BY-PRODUCTS • A source for renewable energy. • Used bio waste as fuel for steam production and power generation. • Substitute for inorganic fertiliser. 28
Slide 29: Systems: Enhance Use of Technology
SYSTEMS: ENHANCE USE OF TECHNOLOGY Microsoft’s Power BI • Serves as the THP Group's operation analytics dashboard to improve monitoring and tracking of operational performances.. Indoor Digital Media • The system consists of digital screen HDTV displays and strategically positioned throughout differ
Slide 30: Systems: Enhance Use of Technology - Drones
SYSTEMS: ENHANCE USE OF TECHNOLOGY Drone Technology - Digital Mapping, Pest Data Gathering & Accurate Tree Counting Mapping and Inventory of Oil Palm Plantations – Tree Counting Sample Output (Web GIS - Dashboard) 30
Slide 31: Systems: Expand Mechanisation Initiatives
TRANSFORMATION INITIATIVES - SYSTEMS Expand Mechanisation Initiatives to Improve Productivity Invested approximately RM3.28 million of capex and RM1.0 million on leasing for Motorise Infield collection machineries and Grabber machines. 31
Slide 32: Table of Contents
TABLE OF CONTENTS CONTENTS 1 OVERVIEW 2 FINANCIAL PERFORMANCE 3 OPERATIONAL PERFORMANCE 4 TRANSFORMATION INITIATIVES 5 OUTLOOK & THP 5-YEAR STRATEGIC PLAN : AL-FALAH 22/22 6 CONCLUSION 32
Slide 33: Outlook - Economy & the Industry
OUTLOOK - ECONOMY & THE INDUSTRY (FY2023) Demand for Palm Oil is expected to remain strong in the future. BULLISH FACTORS ➢ Weak Ringgit Malaysia against US Dollar – stimulate demand support ➢ Confirmed El Niño effect – reduced stock and pushing the price on the upside ➢ Indonesia Biodiesel Mandate
Slide 34: 5-Year Strategic Business Plan: AL-FALAH 22/22
5-YEAR STRATEGIC BUSINESS PLAN: AL-FALAH 22/22 34
Slide 35: AL-FALAH 22/22: Comprehensive Work Plans
AL-FALAH 22/22 : COMPREHENSIVE WORK PLANS (CWP) Establishment of Six CWP with well defined targets being the game-changer towards reinventing THP. 35
Slide 36: AL-FALAH 22/22: Management & Monitoring
AL-FALAH 22/22: MANAGEMENT & MONITORING Ensuring a systematic approach in implementing & tracking the initiatives progress. 36
Slide 37: Table of Contents
TABLE OF CONTENTS CONTENTS 1 OVERVIEW 2 FINANCIAL PERFORMANCE 3 OPERATIONAL PERFORMANCE 4 TRANSFORMATION INITIATIVES 5 OUTLOOK & THP 5-YEAR STRATEGIC PLAN : AL-FALAH 22/22 6 CONCLUSION 37
Slide 38: Key Message
KEY MESSAGE THP Performed Satisfactorily in 2023 despite a challenging operating year. Positive & Improving THP is THP strives to Stable Operational embarking on a deliver greater Performance is Efficiency 5-year Strategic long-term value the result of the remains key to Business Plan and sustainabl
Slide 39: Appreciation
APPRECIATION Our appreciation to THP’s Board The Board’s leadership and valuable Members for their counsel and inputs played a vital role in completing contribution in developing the the Transformation initiatives and 5-year Strategic Business Plan: achieving positive results AL-FALAH 22/22 Thank yo
Slide 40: Thank You
TH PLANTATIONS BERHAD THANK YOU GROWTH FOR POSTERITY ANNUAL REPORT 2025 40
Slide 41: Question & Answer
QUESTION & ANSWER GROWTH FOR POSTERITY ANNUAL REPORT 2025 41
TH Plantations Berhad — Shareholder Meeting (May 2024) on 6ix