Th Plantations Bhd. · MYX:THPLANT
Th Plantations Bhd — Shareholder Meeting (June 2022)
27 slides from Th Plantations Bhd's shareholder meeting presentation, Jun 23, 2022
Slide 1: Annual General Meeting 23 June 2022 - Presentation by CEO
Annexure A ANNUAL GENERAL MEETING 23 JUNE 2022 PRESENTATION BY CEO MOHAMED ZAINURIN MOHAMED ZAIN Chief Executive Officer 1
Slide 2: Table of Contents
TABLE OF CONTENTS THP Overview Financial Performance Operational Statistics Challenges & Outlook Transformation Plan 2
Slide 3: THP Overview: THP Group
THP OVERVIEW THP GROUP Land Bank 98,221 Ha 38 Estates 6 Palm Oil Mills THP Group Ʃ Planted area = 67,761 Ha Oil Palm 57,381 Ha THP Group Planted Area (Ha) Rubber / Teak 10,380 Ha Peninsular Malaysia 12,914 19% Mills 6 Units Sabah (Oil Palm) 9,099 13% Management Agent Sabah (Rubber/Teak) 10,380 15% O
Slide 4: Corporate Overview
CORPORATE OVERVIEW Shareholding as at 1Q2022 73.84% MARKET CAP SHARE PRICE 26.16% FY2020 503,795,338 RM0.57 FY2021 530,310,882 RM0.60 PUBLIC 31 May 2022 667,307,860 RM0.76 Current Business Model Workforce FY2021 1Q2022 Executive & Above 239 236 Developing Processing Marketing Managing Support 501 49
Slide 5: Financial Performance
TABLE OF CONTENTS THP Overview Financial Performance Operational Statistics Challenges & Outlook Transformation Plan 5
Slide 6: THP 2021 Financial Performance
THP 2021 FINANCIAL PERFORMANCE 37% 270% 401% 18.79% 3x 4x REVENUE PAT PATAMI YIELD EPS ROE RM760.8m RM101.6m RM70.1m 13.3 mt/h 7.94sen 11.4% FY20: RM555.1m FY20: RM27.5m FY20: 14.0m FY20: 16.1 mt/h FY20: 2.4% FY20: 1.58sen 6
Slide 7: Financial Performance FY2021: Main Factors
FINANCIAL PERFORMANCE FY2021 Main Factors contributing to the positive performance… 2021 2020 YoY 1. HIGHER SELLING PRICES RM/mt RM/mt CPO 3,762 2,538 48% PK 2,768 1,536 80% FFB 842 516 63% 2. LOWER SALES QUANTITY RM’000 RM’000 3. LOWER FV BIOLOGICAL ASSET (14,058) 4,220 -433% 4. HIGHER COST OF SALE
Slide 8: Positive Financial Indicators
FINANCIAL PERFORMANCE FY2021 Positive Financial indicators - towards better business recovery EPS (sen) NA/ share (RM) Market cap (RM’M) 0.73 7.94 530.31 0.66 503.80 1.58 Market price/share (sen) Return on equity (%) Current asset ratio (times) 11.42 1.97 0.60 0.57 1.66 1.66 2.44 FY2021 FY2020 8
Slide 9: Borrowings & Gearing Ratio
BORROWINGS & GEARING RATIO Liquidity and high debt level still the main issue... FY2021 FY2020 Net Gearing (times) 1.22 1.36 RM’Mil Borrowings 1,372 1,159 Cash and Cash Equivalents 299 87 Net Borrowings 1,073 1,072 THP is in a positive net cash position from its operating & financial activities. FY2
Slide 10: Operational Statistics
TABLE OF CONTENTS THP Overview Financial Performance Operational Statistics Challenges & Outlook Transformation Plan 10
Slide 11: Land Bank & Area Statement by Region FY2021
LAND BANK & AREA STATEMENT BY REGION FY2021 70% of the land area is planted and generating income … TOTAL IN-COURSE PLANTED OTHERS/ MATURE IMMATURE LAND OF PLANTING AREA IDLE LANDS BANK REGION OIL PALM (Ha) Semenanjung 11,547 1,367 - 12,914 539 13,453 Sabah 6,843 1,756 500 9,099 832 9,931 Sarawak 33
Slide 12: Age Profile
AGE PROFILE Immature 26 > (Old Mature) Oil Palm Age Profile /Ha 2021 1Q2022 4,410 19-25 (Mature) 1,380 7,274 4,910 2% Immature (8%) 3,491 4 - 8 (Young Mature) 8% 10,123 13% Young Mature (4-8 years) 10,123 9,525 (18%) 18% 33,693 Prime Mature (9-18 years) 34,685 (59%) 7,274 Mature (19-25 years) 7,245
Slide 13: Operational Performance vs MPOB
OPERATIONAL PERFORMANCE VS MPOB Better Yield in Peninsular Malaysia and Sabah despite overall lower yield… THP MPOB FFB Yield OER (%) KER (%) FFB Yield OER (%) KER (%) 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Peninsular 18.02 19.47 19.75 19.79 4.93 4.98 16.24 17.76 19.83 19.69 5.2
Slide 14: Challenges & Outlook
TABLE OF CONTENTS THP Overview Financial Performance Operational Statistics Challenges & Outlook Transformation Plan 14
Slide 15: Challenges - Operations
CHALLENGES - OPERATIONS CONSTRAINT ON LABOUR SHORTAGE COVID-19 PANDEMIC LAND UTILISATION ❑ Closure of borders and ongoing negotiations on foreign workers ❑ Operational Challenges – THP affected the arrival of new ❑ To maximise the value of our land adheres strictly and support all ❑ Immature Rubber
Slide 16: Outlook - Economy & the Industry (FY2022)
OUTLOOK - ECONOMY & THE INDUSTRY (FY2022) Demand for Palm Oil is expected to remain strong in the future … BULLISH FACTORS ➢ Elevated prices of palm products due to : ✓ Tight global supply of palm and other vegetable oils ✓ Stronger palm oil demand from China, India and Europe ✓ Lower output of othe
Slide 17: Transformation Plan
TABLE OF CONTENTS THP Overview Financial Performance Operational Statistics Challenges & Outlook Transformation Plan 17
Slide 18: Transformation Plan: Operational Efficiency Programme
TRANSFORMATION PLAN: OPERATIONAL EFFICIENCY Scheduled Replanting PROGRAMME Sustainable Practices GOVERNANCE Programme & Compliance towards to achieve sustainable ESG and enhance the optimum crop production Enterprise Risk and oil palm age Management Increase Purchasing Framework of FFB Optimise Util
Slide 19: Transformation Plan: Mechanisation Pilot Initiatives
TRANSFORMATION PLAN Mechanisation Pilot Initiatives – to increase productivity amid labour shortage Increase 62% of Mechanical Buffalo (Badang) Increase 39% of Mechanical Spreaders for for in-field collection work in Peninsular Malaysia and manuring activities in Peninsular Malaysia and Sabah from 5
Slide 20: Transformation Plan: Scheduled Replanting Programme
TRANSFORMATION PLAN Scheduled Replanting Programme to ensure optimum age profile Replanting Policy : 5% of the total planted area annually : Maintaining an immature area of approx. 15% 3,000 Replanting Programme from 2022 to 2030 2,500 2,000 1,848 1,579 1,617 1,533 1,500 1,175 1,006 1,000 805 551 50
Slide 21: Transformation Plan: 2021 Replanting Progress
TRANSFORMATION PLAN The replanting in 2021 proceeded smoothly with 100% completion in Bukit Belian and Bukit Gold. Estate Actual Estimate Progress Completion (Ha) (Ha) (%) Date Bukit Gold 280 280 100% March 2022 December Bukit Belian 220 220 100% 2021 Total 396 500 100%
Slide 22: Transformation Plan: Replanting Program 2022
TRANSFORMATION PLAN Replanting Program 2022 Region Company Estate Estimate (Ha) Peninsular Sungai Mengah 305 Malaysia THP Kota Bahagia Sdn Bhd Bukit Gold 280 THP Sabaco Sdn Bhd Sabah THP Bukit Belian Sdn Bhd Bukit Belian 220 Total 805
Slide 23: Better Capital Structure: Establishment of New Sukuk
ESTABLISHMENT OF NEW SUKUK PROPOSED UNRATED ISLAMIC MEDIUM TERM NOTES PROGRAMME OF UP TO RM1.08 BILLION IN NOMINAL VALUE Objective of the sukuk establishment … Better capital ❑ The Group has on 17 June 2022 structure completed the lodgement of the Lower Sukuk Wakalah Programme with the Securities Co
Slide 24: Moving Forward
MOVING FORWARD Striving For Operational Excellence In Managing A Sustainable Business By Creating Opportunities with Positive Growth And Impact Improving operational efficiency by adopting Good Agriculture Practices & Good Manufacturing Practices in achieving and delivering Best Quality Products Del
Slide 25: Key Message
KEY MESSAGE THP Performed better in 2021 despite a challenging operating year. Positive Financial Indicators shows THP is on the right track to be a respectable company through its Transformation Plan Improving Operational Efficiency remains key to ensure THP’s growth, impact and sustainability THP
Slide 26: Appreciation
APPRECIATION Management would like to record our appreciation to THP’s Board Members for their support in executing the Transformation Plan. The Board’s leadership and valuable inputs played a vital role in achieving THP’s positive results and is essential towards a sustainable business and value. 2
Slide 27: Thank You
THANK YOU 27
TH Plantations Berhad — Shareholder Meeting (June 2022) on 6ix