Ioi Corporation Berhad · MYX:IOICORP
Ioi Corporation Berhad — Shareholder Meeting (October 2023)
22 slides from Ioi Corporation Berhad's shareholder meeting presentation, Oct 27, 2023
Slide 1: 54th Annual General Meeting
th 54 Annual General Meeting 27 October 2023 Presented by Group CFO Mr. Kong Kian Beng
Slide 2: Group Financial Performance Overview
Group Financial Performance Overview Year ended 30 June FY2023 FY2022 Variances RM Million RM Million (%) Revenue 11,583.8 15,578.7 (26) Profit before Interest and Tax (PBIT) 1,815.5 2,494.2 (27) Profit before Tax (PBT) 1,526.0 2,352.6 (35) Underlying PBT* 1,764.3 2,547.7 (31) Profit after Tax (PAT)
Slide 3: Segment Profit
Segment Profit Year ended 30 June FY2023 FY2022 Variances *% 1% RM Million RM Million (%) 21% 37% Plantation 1,151.3 2,084.2 (45) FY2023 FY2022 Resource-based 691.0 537.3 29 Manufacturing 63% 78% Others (1.1) 10.7 nm * Negligible * 2
Slide 4: Segment Profit – Plantation
Segment Profit – Plantation Segment profit (RM Million) RM932.9 mil (45%) Lower profit mainly due to: - Lower commodity prices - Higher cost of production 2,084.2 - Lower share of associates 1,151.3 results due to lower FY2023 FY2022 commodity price CPO Average selling price PK Average selling pri
Slide 5: Segment Profit – Resource-based Manufacturing
Segment Profit – Resource-based Manufacturing Segment profit Underlying segment profit (RM Million) (RM Million) Higher underlying profit RM153.7 mil (29%) RM188.5 mil (34%) mainly due to: - Higher margins from refining sub-segment 691.0 partially offset by: 537.3 749.1 560.6 - Lower margins fro
Slide 6: Balance Sheet
Balance Sheet Year ended 30 June FY2023 FY2022 RM billion RM billion ASSETS ASSETS Assets FY2023 FY2022 Property, plant and equipment 9.0 8.7 Other long term assets 3.7 3.7 Other short term assets 2.7 4.1 Cash and cash equivalents 2.2 2.6 17.6 19.1 Equity and Liabilities Equity 11.3 10.9 Borrowings
Slide 7: Capital Expenditure
Capital Expenditure Capital Expenditure (RM Million) RM175.7 mil (39%) Higher capital expenditure mainly due to: - Higher replanting and new planting cost due to higher planting area - Higher expenditure on mechanisation and digitalisation 621.2 445.5 - Completed construction of IOI Palm Wood fact
Slide 8: Equity Repayments
Equity Repayments • Total Dividend declared for the financial year ended 30 June 2023: 11 sen per share FY2023 RM Million sen per share 1st interim 372.4 6.0 Payment on 24 March 2023 2nd interim 310.2 5.0 Payment on 22 September 2023 682.6 11.0 • Share Buy Back during FY23 at an average price of RM3
Slide 9: Thank You
1 Thank You
Slide 10: IOI’s Sustainability Journey Forward
IOI’s Sustainability Journey Forward Dr. Surina Ismail, Group Head of Sustainability, IOI Corporation Berhad October 27, 2023
Slide 11: IOI’s Approach to Corporate Sustainability
IOI’s Approach to Corporate Sustainability Vision, Pillars & Approach to Sustainability Sustainability Vision We should meet the needs of the present without compromising that of the future generations by: IOI’s Corporate Sustainability and 3 Pillars of Sustainability: A business strategy (economic
Slide 12: IOI’s Approach to Strong Governance
IOI’s Approach to Strong Governance Integration of Corporate Governance Sustainability Governance Structure Adopted 6 UNSDGs most relevant to our business All Rights Reserved
Slide 13: IOI’s Approach on Environment
IOI’s Approach on Environment Environmental Management Policies & Guidelines Biodiversity & Ecosystem Enhancement Guideline Step 01 Step 02 Step 03 Step 04 Identification Impact Threat of Biodiversity Evaluation, Execution & Monitoring & Mitigation, Management & Crisis Conservation Protection & Mana
Slide 14: IOI’s Corporation KPI on Climate Change
IOI’s Corporation KPI on Climate Change Alignment with TCFD & SBTi FLAG – Pathway to Net Zero by 2040 Nature-based Solutions • No Deforestation, No New Planting on Peat, & No Social Exploitation (“NDPE”) • Reforestation, Rehabilitation & Protection of Conservation Areas • Enhance Biodiversity & Ecos
Slide 15: IOI’s Approach on Social Issues
IOI’s Approach on Social Issues Mitigating Social Issues – Social Impact Assessment (SIA) LABOUR EMPLOYMENT CHILDREN’S/ RIGHTS OF RIGHTS PROCESS WOMEN’S LOCAL • Fair & Decent • Pre-employment RIGHTS COMMUNITIES Wages -recruitment • Women & • FPIC • Harassment Free • Employment – Empowerment • Work &
Slide 16: IOI’s Digital Transformation Programs
IOI’s Digital Transformation Programs Initiatives to help prevent Force & Child Labour Digital Grievance Application : IOI Mesra • 24/7 app for the workers to report any grievances anonymously Direct Online Interview during Recruitment Process • To combat forced labour indicators during recruitment
Slide 17: Thank You for your Attention
IOI GROUP Thank You for your Attention rl. é
Slide 18: Responses to Minority Shareholders Watch Group’s Queries
Responses to Minority Shareholders Watch Group’s Queries
Slide 19: Operational and Financial Matters Q1
Operational and Financial Matters Q1. The Group initiated a Five-Year Plan in March 2020, now in its fourth year, where the first priority is to increase plantation oil yield by at least 15% by the end of 2024 [page 20 of Annual Report 2023 (“AR2023”)]. The labour shortage also caused a delay in the
Slide 20: Operational and Financial Matters Q2
Operational and Financial Matters Q2. The Group’s second strategic priority centres on reduction of its plantation workforce by increasing the land to worker ratio through implementation of various estate mechanisation and digitalisation initiatives (page 20 of AR2023). As the Group is accelerating
Slide 21: IOI Response (cont’d)
IOI Response (cont’d): Despite the intensified mechanisation, our Group’s current land-to-worker ratio which stands at approximately 8.5 hectares to 1 worker remains relatively low as we still require a higher workforce to address the backlog of tasks accumulated during the period of severe worker s
Slide 22: Operational and Financial Matters Q3
Operational and Financial Matters Q3. The Group’s new 110,000 MT/year capacity fatty acid plant in Prai, Penang and state-of-the-art soap noodles plant in Pasir Gudang, Johor started commissioning in the second quarter of 2023. This new fatty acid plant has increased the Group’s oleochemical product
IOI Corporation Berhad — Shareholder Meeting (October 2023) on 6ix