Mega First Corp. Bhd. · MYX:MFCB
Mega First Corp. Bhd — Shareholder Meeting (May 2021)
58 slides from Mega First Corp. Bhd's shareholder meeting presentation, May 27, 2021
Slide 1: Annual General Meeting 27 May 2021
ANNUAL GENERAL MEETING 27 MAY 2021 MEGA FIRST CORPORATION BHD - MAY 2021 1
Slide 2: Agenda
AGENDA 1) Overview of 1Q2021 performance Renewable Energy Resources Packaging Plantation 2) Acquisition of Stenta Films Malaysia Sdn Bhd 2
Slide 3: 1Q2021 Group Revenue & PBT
1Q2021 GROUP REVENUE & PBT Revenue Pre-Tax Profit Others Resources 2% Others 7% 0% Resources 23% Renewable Energy Packaging 59% 3% Packaging Renewable 16% Energy 90% 1Q2021 : RM193.7 million 1Q2021 : RM86.9 million MEGA FIRST CORPORATION BHD - MAY 2021 3
Slide 4: Quarterly Group Revenue & PBT
QUARTERLY GROUP REVENUE & PBT RM mil GROUP REVENUE RM mil GROUP PBT 250 140.0 211.2 213.9 116.1 193.7 120.0 109 200 181.3 97.3 160.7 100.0 86.9 150 80.0 66.5 60.0 100 40.0 50 20.0 - - 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 MEGA FIRST CORPORATION BHD - MAY 2021 4
Slide 5: Renewable Energy
RENEWABLE ENERGY DON SAHONG HYDROPOWER & COMMERCIAL AND INDUSTRIAL SOLAR MEGA FIRST CORPORATION BHD - MAY 2021 5
Slide 6: Quarterly Renewable Energy Revenue & PBT
QUARTERLY RENEWABLE ENERGY REVENUE & PBT RM mil RENEWABLE ENERGY REVENUE RM mil RENEWABLE ENERGY PBT 160.0 120.0 111.4 137.5 139 102.4 140.0 130.4 100.0 93.7 114.2 120.0 78.2 103.3 80.0 100.0 64.7 80.0 60.0 60.0 40.0 40.0 20.0 20.0 - - 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 1Q2020 2Q2020 3Q2020 4Q2020 1
Slide 7: Don Sahong Hydropower
DON SAHONG HYDROPOWER • Maiden year of full commercial operations since 7 January 2020. • Commercial Operation Date (COD) was confirmed on 1 October 2020. Concession period of 25 years starts from COD Income exempted from corporate tax for 5 years from COD • Energy generation is highly dependent
Slide 8: Don Sahong Hydropower: Water Level vs Capacity Factor
DON SAHONG HYDROPOWER (m) Pakse Water Level vs Capacity factor/EAF 9.00 110% 8.00 100% 7.00 6.00 90% 5.00 80% 4.00 3.00 70% 2.00 60% 1.00 0.00 50% 1-Jan-20 1-Feb-20 1-Mar-20 1-A pr-20 1-May-20 1-Jun-20 1-Jul-20 1-A ug-20 1-Sep-20 1-Oct-20 1-Nov-20 1-Dec-20 Pakse WL (m) Capacity Factor (%) MEGA FIRST
Slide 9: Don Sahong Hydropower
DON SAHONG HYDROPOWER • In 2021, average water level in Jan and Feb was slightly better compared to extreme drought year of 2020. • Raining season came earlier this year – water level started to rise rapidly in mid March. • Estimated annual generation based on long term average hydrological data is
Slide 10: Pakse Water Level - 2021 vs 2020
DON SAHONG HYDROPOWER Pakse Water Level - 2021 vs 2020 2.50 2.00 1.50 1.00 0.50 0.00 1-Jan 16-Jan 31-Jan 15-Feb 2-Mar 17-Mar 1-Apr 16-Apr 1-May 16-May 2020 Pakse WL (m) 2021 Pakse WL (m) MEGA FIRST CORPORATION BHD - MAY 2021 10
Slide 11: Don Sahong Hydropower: Powerhouse
DON SAHONG HYDROPOWER Powerhouse MEGA FIRST CORPORATION BHD - MAY 2021 11
Slide 12: Inside the Powerhouse
DON SAHONG HYDROPOWER Inside the Powerhouse MEGA FIRST CORPORATION BHD - MAY 2021 12
Slide 13: Don Sahong Hydropower
DON SAHONG HYDROPOWER Outlook of the Powerhouse Photo Wall of the Powerhouse Switchyard Transformer MEGA FIRST CORPORATION BHD - MAY 2021 13
Slide 14: Don Sahong Hydropower
DON SAHONG HYDROPOWER Control Room Auxiliary Power System Unit High Voltage Electrical Equipment Room DC Battery System MEGA FIRST CORPORATION BHD - MAY 2021
Slide 15: Permanent Operation Village
DON SAHONG HYDROPOWER Permanent Operation Village Permanent Operation Village Permanent Operation Village Permanent Operation Village MEGA FIRST CORPORATION BHD - MAY 2021 15
Slide 16: Irrigation Canal and Rice Production
DON SAHONG HYDROPOWER Irrigation Canal Irrigation Canal Rice Production Rice Production MEGA FIRST CORPORATION BHD - MAY 2021 16
Slide 17: School and Clinic
DON SAHONG HYDROPOWER New Sadam Island Secondary School New Sadam Island Secondary School New Clinic New Clinic MEGA FIRST CORPORATION BHD - MAY 2021 17
Slide 18: Livestock Rearing
DON SAHONG HYDROPOWER Livestock Rearing - Duck Livestock Rearing - Goat Livestock Rearing - Chicken Livestock Rearing - Cow MEGA FIRST CORPORATION BHD - MAY 2021 18
Slide 19: Livestock and Cultivation
DON SAHONG HYDROPOWER Livestock Rearing - Goat Livestock Rearing - Buffalo Cultivation - Sugarcane Cultivation – Cashew Tree MEGA FIRST CORPORATION BHD - MAY 2021 19
Slide 20: Cultivation
DON SAHONG HYDROPOWER Cultivation - Bamboo Cultivation - Banana Cultivation - Mushroom Cultivation - Mushroom MEGA FIRST CORPORATION BHD - MAY 2021 20
Slide 21: Community Shops
DON SAHONG HYDROPOWER Motorbike Repair Shop Motorbike Repair Shop Retail Shop Retail Shop MEGA FIRST CORPORATION BHD - MAY 2021 21
Slide 22: Restaurant and Fish Farming
DON SAHONG HYDROPOWER Restaurant Restaurant Fish Farming Fish Farming MEGA FIRST CORPORATION BHD - MAY 2021 22
Slide 23: Commercial & Industrial Solar Investment
COMMERCIAL & INDUSTRIAL SOLAR INVESTMENT 1) Background 2) Business 3) Projects • Started this business in Model • Completed 3 projects – total 4Q2019. 14.5MW. • Private PPA with a tenure of 10-20 years VAT Manufacturing (1.5MW) • Undertaken by MFP in Aug 2020 to help our customers Solar Sdn Bhd, a
Slide 24: MFP Solar – VAT Manufacturing, Penang
MFP SOLAR – VAT MANUFACTURING, PENANG MEGA FIRST CORPORATION BHD - MAY 2021 24
Slide 25: MFP Solar – Large Automotive Plant, Malaysia
MFP SOLAR – LARGE AUTOMATIVE PLANT, MALAYSIA MEGA FIRST CORPORATION BHD - MAY 2021 25
Slide 26: MFP Solar – Oji Paper, Phnom Penh, Cambodia
MFP SOLAR – OJI PAPER, PHNOM PENH, CAMBODIA MEGA FIRST CORPORATION BHD - MAY 2021 26
Slide 27: Resources: Largest Quicklime Producer in Malaysia
RESOURCES LARGEST QUICKLIME PRODUCER IN MALAYSIA MEGA FIRST CORPORATION BHD - MAY 2021 27
Slide 28: Quarterly Resources Revenue & PBT
QUARTERLY RESOURCES REVENUE & PBT RM mil RESOURCES REVENUE RM mil RESOURCES PBT 50.0 8.0 44.6 7.1 45.0 41.1 40.7 7.0 40.0 6.0 34.5 6.0 35.0 5.4 30.0 26.6 5.0 4.3 25.0 4.0 20.0 3.0 15.0 2.0 2.0 10.0 5.0 1.0 - - 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 MEGA FIRST CORPORATI
Slide 29: Resources: Performance and Prospects
RESOURCES 1) Performance 2) Prospects • Quicklime capacity • Revenue is expected to grow expanded 150% to 715,000 in 2021, although there will be tonnes/year from 2015 to some pressure on margins 2020. from higher freight & logistics costs and fuel & packaging • Revenue, EBITDA and PBT costs. grew 8
Slide 30: Resources
RESOURCES MEGA FIRST CORPORATION BHD - MAY 2021 30
Slide 31: Resources
RESOURCES RCI Plant Quick Lime Production Plant Quick Lime Production Plant Lime Products MEGA FIRST CORPORATION BHD - MAY 2021 31
Slide 32: Packaging
PACKAGING PAPER BAGS AND FLEXIBLE PACKAGING PRODUCTS MEGA FIRST CORPORATION BHD - MAY 2021 32
Slide 33: Main Products: Paper Bags & Flexible Packaging
MAIN PRODUCTS: PAPER BAGS & FLEXIBLE PACKAGING • One of MFCB’s 3 core divisions • Production capacity to more than 2x by end-2021 • In 2020, Revenue grew 43% to RM98 million. PBT was RM9.5 million from a marginal loss in 2019. • Revenue and earnings in 2021 will continue to grow with the capacity ex
Slide 34: Packaging – Paper Bags
PACKAGING – PAPER BAGS MEGA FIRST CORPORATION BHD - MAY 2021 34
Slide 35: Packaging – Paper Bags
PACKAGING – PAPER BAGS MEGA FIRST CORPORATION BHD - MAY 2021 35
Slide 36: Packaging - Production
PACKAGING - PRODUCTION MEGA FIRST CORPORATION BHD - MAY 2021 36
Slide 37: Flexible Packaging
FLEXIBLE PACKAGING MEGA FIRST CORPORATION BHD - MAY 2021 37
Slide 38: Plantation: Mondulkiri Province, Cambodia
PLANTATION MONDULKIRI PROVINCE, CAMBODIA MEGA FIRST CORPORATION BHD - MAY 2021 38
Slide 39: Quarterly Packaging Revenue & PBT
QUARTERLY PACKAGING REVENUE & PBT RM mil PACKAGING REVENUE RM mil PACKAGING PBT 35.0 4.5 30.7 28.8 3.8 30.0 28.1 4.0 3.5 3.5 25.0 21.6 3.0 19.2 2.6 20.0 2.5 15.0 2.0 1.7 1.5 10.0 1.0 5.0 0.5 0.5 - - 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 MEGA FIRST CORPORATION BHD - MA
Slide 40: Plantation
PLANTATION 1) Background 2) Land 3) Plans • Main crops: • 50-year concession • Planned planting in coconuts & on 6,420 hectares 2021: 600 hectares macadamia • Est. plantable area: • Target to complete 4,500 hectares planting by 2024. • Cumulative investment as at 31 • Cumulative area • Evaluating va
Slide 41: Plantation Location
PLANTATION LOCATION MFCB obtained approval from the Royal Government of Cambodia for the concession of a plot of land measuring 6,420 hectares situated in the Namlear Wildlife Sanctuary Zone, Mondulkiri Province, Kingdom of Cambodia for agricultural development. The term of the concession is 50 year
Slide 42: Plantation
PLANTATION MEGA FIRST CORPORATION BHD - MAY 2021 42
Slide 43: Plantation
PLANTATION MEGA FIRST CORPORATION BHD - MAY 2021 43
Slide 44: Plantation
PLANTATION MEGA FIRST CORPORATION BHD - MAY 2021 44
Slide 45: Plantation
PLANTATION MEGA FIRST CORPORATION BHD - MAY 2021 45
Slide 46: Plantation
PLANTATION MEGA FIRST CORPORATION BHD - MAY 2021 46
Slide 47: Plantation
PLANTATION MEGA FIRST CORPORATION BHD - MAY 2021 47
Slide 48: Plantation – Seedbed Nursery
PLANTATION – SEEDBED NURSERY MEGA FIRST CORPORATION BHD - MAY 2021 48
Slide 49: Plantation
PLANTATION MEGA FIRST CORPORATION BHD - MAY 2021 49
Slide 50: Plantation
PLANTATION MEGA FIRST CORPORATION BHD - MAY 2021 50
Slide 51: Plantation
PLANTATION Macadamia Flowers Coconut Flowers Passion Fruit Coffee Beans MEGA FIRST CORPORATION BHD - MAY 2021 51
Slide 52: Plantation
PLANTATION MEGA FIRST CORPORATION BHD - MAY 2021 52
Slide 53: Acquisition of Stenta Films Sdn Bhd
ACQUISITION OF STENTA FILMS SDN BHD (“STENTA”) MEGA FIRST CORPORATION BHD - MAY 2021 53
Slide 54: About Stenta
ABOUT STENTA • One of the leading flexible packaging film manufacturers in Malaysia. • Commenced operations in Jan 1993. • Operates two factories in Bandar Baru Bangi. • Produces a wide range of quality Biaxially Oriented Poly Propylene (BOPP) & Linear Low Density Polyethylene (LLDPE) films used for
Slide 55: Rationale for the Acquisition
RATIONALE FOR THE ACQUISITION • This acquisition is strategic to support the growth of MFCB’s existing downstream flexible packing business. • Stenta’s BOPP and LLDPE films are key input materials for MFCB’s flexible packaging business. • Expansion into upstream plastic film manufacturing to lower c
Slide 56: Funding and Valuation
FUNDING • MFCB is acquiring 75% of Stenta for RM153.75 million in cash. • The remaining 25% of Stenta will be predominantly owned by P.T. Argha Karya Prima Industry Tbk, one of the founding shareholders. • MFCB shall grant a Put Option to the minority shareholders to sell their shares in Stenta to M
Slide 57: Stenta's Products & Applications
STENTA’S PRODUCTS & APPLICATIONS MEGA FIRST CORPORATION BHD - MAY 2021 57
Slide 58: Thank You
THANK YOU MEGA FIRST CORPORATION BHD - MAY 2021 58