Kumpulan Perangsang Selangor Bhd. · MYX:KPS
Kumpulan Perangsang Selangor Bhd — Shareholder Meeting (May 2019)
32 slides from Kumpulan Perangsang Selangor Bhd's shareholder meeting presentation, May 23, 2019
Slide 1: Business Review & Prospect
Business Business Review Review & Prospect & Prospect
Slide 2: Table of Contents
Table of SECTION 1 : The KPS That Was 4-6 Contents SECTION 2 : Business Transformation Plan (“BTP”) 8 - 10 SECTION 3 : Results of BTP 12 - 15 SECTION 4 : 2018 Highlights 17 - 22 SECTION 5 : Sustainability & CSR 24 – 25 SECTION 6 : Awards & Recognition 27 SECTION 7 : Prospect & Future Plans 29 - 31
Slide 3: Section 1: The KPS That Was
SECTION 1 I THE KPS THAT WAS
Slide 4: Core Interest in Challenging Sectors
Core Interest in Challenging Sectors Resulting in Unfavourable Market Perception Investments in 2015 Infrastructure Utilities Hospitality Telco Oil & Gas Trading (30.0%) (90.8%) (100%) Ceres Telecom (40.0%) (36.0%) (20.0%) (34.3%) (30.0%) PHP (100%) Perception Non Controlling Products / Services Del
Slide 5: Unsustainable Growth Due to Absence of Core Catalysts
Unsustainable Growth Due to Absence of Core Catalysts Declining Share Price & Dependability of Dividend Distribution on Sale of Assets 2 Negotiations in relation to water assets continuing from 2013 gave rise to speculative share price performance 1.8 1.6 Oct 2015: Announcement - proposed disposal o
Slide 6: Sustained Business Challenges
Sustained Business Challenges Called for a Paradigm Shift in How We Do Business Imminent Divestment of SPLASH Continued Decline Unfavourable in Share Price Sentiment Amongst Investors Business Transformation Plan (“BTP”) 6
Slide 7: Section 2: Business Transformation Plan (BTP)
SECTION 2 I BUSINESS TRANSFORMATION PLAN (“BTP”) “Creating Sustainable Value To Shareholders”
Slide 8: A More Robust Strategy under BTP
A More Robust Strategy under BTP Before & After Business Transformation Plan BEFORE AFTER Sector Agnostic Sector-specific Over-exposure to single sector Balanced exposure over core sectors Generalist approach to investment Focused investment parameters Selangor-centric business Boundaryless investme
Slide 9: Ensuring Sustainable Growth & Enhancing Shareholders' Value
Ensuring Sustainable Growth & Enhancing Shareholders’ Value Four Pillars Crafted to Support BTP Objectives Acquisition of Strategic Assets Creating Value in Subsidiary Companies ▪ Majority stake ▪ Setting Value Creation Plans ▪ Mature / Market Leader for pre and post acquisition ▪ Financially Stable
Slide 10: BTP in Action
BTP in Action Acquisitions and Corporate Exercises Since Emerged as major Emerged as Disposed: shareholder major Acquired Acquired for Aqua-Flo shareholder for Brisdale Hotel, 51% stake in Disposed: 100% stake (51%) KPS-HCM (51%) Cengren Global Smartpipe in CPI PTGC, & ABASS Ceres Telecom 2016 2018
Slide 11: Section 3: Results of BTP
SECTION 3 I RESULTS OF BTP
Slide 12: Our Business Today
Our Business Today Controlling Stake in Market Leaders in High Growth Industries Manufacturing Licensing Trading Infrastructure Associates 98.9% 100% 51% 51% 60% 40% 20% 60% 100% KKLC 60% KKMW 12
Slide 13: Investments in Four Core Sectors
Investments in Four Core Sectors Concentration on Manufacturing in Diversified Industries MANUFACTURING TRADING INFRASTRUCTURE KPS-HCM KPS-HCM Sdn Bhd Century Bond Bhd Integrated Packaging Solutions Aqua-Flo Sdn Bhd General Civil Enginering Works Provider Supply of Water Chemicals & & Building Const
Slide 14: Sustainable Value Creation to the Shareholders
Sustainable Value Creation to the Shareholders BTP Has Delivered ~RM250 Million in Total Shareholders’ Value Thus Far Steady Long-Term Share Price Performance Despite Rapid Expansion since 2016, KPS Increased Its Dividend Distribution 175.2* 2.15 1.95 1.75 1.55 21.2 22.8 22.8 1.35 1.15 RM million 0.
Slide 15: KPS Has Outperformed KLCI by 37% since 2016
KPS Has Outperformed KLCI by 37% since 2016 Testament to the Success of the BTP KPS KLCI OUTPERFORMANCE 37% 44 % 7 % 15
Slide 16: Section 4: 2018 Highlights
SECTION 4 I 2018 HIGHLIGHTS
Slide 17: Sector Reclassification
I SECTOR RECLASSIFICATION
Slide 18: Bursa Sector Reclassification
Bursa Sector Reclassification Providing Accurate Business Benchmarking & Valuation With departure of SPLASH, FROM UTILITIES KPS has no direct exposure in the water sector To reflect KPS’ existing investment focus on core assets and TO INDUSTRIAL PRODUCTS & SERVICES* concentration in manufacturing se
Slide 19: Group Financial Review
I GROUP FINANCIAL REVIEW
Slide 20: Continued with Growth Trajectory
Continued with Growth Trajectory But Financial Performance Challenged by Non-cash Accounting Adjustment 01 Revenue Healthy Growth 02 Operating Profit Strong Turnaround 03 Streamlining Focus Manufacturing Sector 04 Extraordinary Item One-off Share of Loss from Associate Extraordinary Item 20
Slide 21: Revenue Growth
Revenue Growth Stronger Contribution from All Core Sectors REVENUE REVENUE BREAKDOWN 61% Inv. Holding Licensing 5.2% 1.7% 582.3 (2017 : 9.9%) (2017 : 2.6%) Infrastructure 12.6% 361.5 (2017 : 11.3%) Stronger 314.0 Contribution from 286.0 582.3 Manufacturing Trading 19.1% million Sector 144.5 (2017 :
Slide 22: Strong Turnaround in Operating Profit
Strong Turnaround in Operating Profit Overall Improvement in Business Margins & Value Creation from Subsidiaries OPERATING PROFIT/(LOSS) PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS Improvement in Margins & Positive Results from Value 115.6 66.4 Creation by Subsidiaries 97.8 51.5 58.8 55.3 Loss in 201
Slide 23: Section 5: Sustainability & CSR
SECTION 5 I SUSTAINABILITY & CSR
Slide 24: Approach to Sustainable Development
Approach to Sustainable Development Embedding Sustainability through Integration of EES Considerations Promoting Sustainable Business Practices Economic Limiting Negative Building and Maintaining Impact of Our Business to the Environment Environment Social Strong Relationship with Stakeholders 24
Slide 25: Playing Significant Role in Community Empowerment
Playing Significant Role in Community Empowerment Continuously Imprinting Positive Impact on the Community in Which We Operate CAREER STIMULUS SPORTS STIMULUS COMMUNITY STIMULUS • Technical Skills Training Programmes • Sports For All Programme • Association, NGOs, CSR Strategic • HRH Raja Muda Selan
Slide 26: Section 6: Awards & Recognition
SECTION 6 I AWARDS & RECOGNITION
Slide 27: Previous Awards & Recognition
Previous Awards & Recognition Validated Business Practices & Brand CSR Human Resources 1. Asia Responsible Enterprise Award 1. Silver Award: Employer of 2018 - Health Promotion Category Choice (Private Sector) 2018 2. Jury Award 2017 2. HR Asia Best Companies to 3. Asia Responsible Work for in Asia
Slide 28: Section 7: Prospect & Future Plans
SECTION 7 I PROSPECT & FUTURE PLANS
Slide 29: Organic Business Catalysts
Organic Business Catalysts Manufacturing to Lead Growth & Value Creation Optimising product mix and margins with offset printing and shrink plastic Expansion plan is underway to cater for higher demand from ETP and Electronics The planned increase in mattress retailers expected to boost sales for KK
Slide 30: Creating Future Growth Drivers via M&A
Creating Future Growth Drivers via M&A Identified New Investment Opportunities within Manufacturing Sector Why Malaysian-Based Manufacturing?* • Higher Sector Contribution to GDP Relative to Regional Peers. Historically ~ 22% • Ranked 8th in Asia for Innovation & Technology • To benefit Further from
Slide 31: Strategies for Continued Success
Strategies for Continued Success Growth from Wider Earnings Base Market Cap Expected to Reflect TARGETED RESULTS 2021 Increased Earnings Base Earnings Base to Increase ONGOING BTP in Line with BTP Value Creation & New ONGOING BTP Investments Opportunities LOWER EARNINGS BASE 2019 Departure of SPLASH
Slide 32: Thank You
THANK YOU
Kumpulan Perangsang Selangor — Shareholder Meeting (May 2019) on 6ix