PPB Group Bhd. · MYX:PPB
PPB Group Bhd — H1 2021 Earnings Presentation
32 slides from PPB Group Bhd's earnings presentation, June 2021
Slide 1: Unaudited Results for the 6 Months Ended 30 June 2021
UNAUDITED RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2021 Disclaimer: The contents of this presentation include materials which may be capable of being interpreted as forward-looking statements. Such statements are merely estimates and targets, based on circumstances and reasonable assumptions which app
Slide 2: Agenda
AGENDA GROUP FINANCIAL HIGHLIGHTS REVIEW OF MAIN OPERATIONS Financial Performance Key Events in 1H2021 Developments for 2H2021 CAPITAL AND OTHER COMMITMENTS DIVIDEND RECORD SHARIAH-COMPLIANCE STATUS PROSPECTS FOR 2021 2
Slide 3: Group Financial Highlights
GROUP FINANCIAL HIGHLIGHTS 3
Slide 4: Financial Results
FINANCIAL RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2021 (Figures in RM) 1H2021 1H2020 Change Revenue 2.2 bil 2.0 bil 9% Operating Expenses 2.2 bil 2.0 bil 11% Share of Wilmar’s Profit 594 mil 446 mil 33% PBT 591 mil 591 mil 0% Profit attributable to 585 mil 520 mil 13% owners of the parent EPS 41.2 se
Slide 5: Segmental Information: Revenue
SEGMENTAL INFORMATION FOR THE 6 MONTHS ENDED 30 JUNE 2021 2% 2% 4% 2% 14% Total Segment Revenue: RM2.2 billion Grains & Agribusiness Consumer Products Film Exhibition & Distribution Environmental Engineering & Utilities Other operations 76% Property 5
Slide 6: Segmental Information: Profit
SEGMENTAL INFORMATION FOR THE 6 MONTHS ENDED 30 JUNE 2021 1% n.m. 9% 1% -10% Total Segment Profit: RM591 million Grains & Agribusiness Consumer Products Film Exhibition & Distribution Environmental Engineering & Utilities Other operations 99% Property n.m. = not material 6
Slide 7: Review of Main Operations
REVIEW OF MAIN OPERATIONS Financial Performance Key Events in 1H2021 Developments for 2H2021 7
Slide 8: Grains & Agribusiness Financial Performance
GRAINS & AGRIBUSINESS FINANCIAL PERFORMANCE + 9% - 72% Revenue Segment Profit 1H21 RM1.70 bil 1H21 RM52 mil 1H20 RM1.55 bil 1H20 RM181 mil The sharp rise in commodity prices has led to a significant increase in raw material costs of flour and feed products; with limited price-in mechanism, gross p
Slide 9: Grains & Agribusiness Developments in 2H2021
GRAINS & AGRIBUSINESS DEVELOPMENTS IN 2H2021 Construction of a new 500-mt/day wheat flour mill by VFM-Wilmar Flour Mills Co Ltd at its existing factory in Quang Ninh Province, in northern Vietnam at an estimated cost of USD19.7 million. (Expected completion : 3Q2021) 9
Slide 10: Consumer Products Financial Performance
CONSUMER PRODUCTS FINANCIAL PERFORMANCE - 2% - 98% Revenue Segment Profit 1H21 RM320 mil 1H21 RM0.4 mil 1H20 RM326 mil 1H20 RM20 mil Included in the 1H2020 results was a one-off gain on the step- acquisition of an associate which amounted to RM10 million. Performance was significantly impacted b
Slide 11: Consumer Products Key Events in 1H2021
CONSUMER PRODUCTS KEY EVENTS IN 1H2021 FFM Marketing Sdn Bhd launched :- V-Soy Original No Sugar Added Soya Bean Milk in June 2021. The Italian Baker Sdn Bhd launched :- Massimo Tamper-Evident bread bag packaging in February 2021. Massimo Peanut Butter cream roll in February 2021. Massimo Se
Slide 12: Film Exhibition & Distribution Financial Performance
FILM EXHIBITION & DISTRIBUTION FINANCIAL PERFORMANCE - 48% + 3% Revenue Segment Loss 1H21 RM41 mil 1H21 RM(59) mil 1H20 RM80 mil 1H20 RM(61) mil Cinema operations were significantly impacted by the prolonged cinema closures throughout 1H2021 as the country enforced strict Movement Control Orders (
Slide 13: Film Exhibition & Distribution Key Events in 1H2021
FILM EXHIBITION & DISTRIBUTION KEY EVENTS IN 1H2021 On 23 February 2021, GSC signed an Asset Sale Agreement to acquire 18 MBO Cinemas’ assets. The completion date of the acquisition has been extended to mid-Sep 2021. Expanded food delivery service through Foodpanda platform in May 2021. Accele
Slide 14: Film Exhibition & Distribution New Developments in 2H2021
FILM EXHIBITION & DISTRIBUTION NEW DEVELOPMENTS IN 2H2021 GSC Rewards is scheduled to launch in Q4 2021 to drive more admissions, retain cinemagoers, build customer loyalty and attract new cinemagoers. Happy Food Co, our new F&B brand, expects to launch its first cafe in Southkey, Johor Bahru in
Slide 15: Environmental Engineering and Utilities Financial Performance
ENVIRONMENTAL ENGINEERING AND UTILITIES FINANCIAL PERFORMANCE + 63% - 39% Revenue Segment Profit 1H21 RM94 mil 1H21 RM4.2 mil 1H20 RM58 mil 1H20 RM6.9 mil Segment operations were also impacted by the lockdown and reduced operation capacity with the MCO in place during most of 1H2021. 15
Slide 16: Environmental Engineering & Utilities Key Events in 1H2021
ENVIRONMENTAL ENGINEERING & UTILITIES KEY EVENTS IN 1H2021 Completed one water treatment plant in Johor with a contract value of RM21 million. Secured two water projects in Sarawak and Johor with a total contract value of RM126 million. Order book of RM402 million as at 30 June 2021. 16
Slide 17: Environmental Engineering & Utilities Developments in 2H2021
ENVIRONMENTAL ENGINEERING & UTILITIES DEVELOPMENTS IN 2H2021 Tendered for water projects in Malaysia and Brunei valued at RM480 million. Continue to focus on opportunities in our core sectors. 17
Slide 18: Property Financial Performance
PROPERTY FINANCIAL PERFORMANCE + >100% + >100% Revenue Segment Profit/(Loss) 1H21 RM53 mil 1H21 RM6 mil 1H20 RM22 mil 1H20 RM(4) mil The increase in segment revenue and profit were mainly attributable to higher revenue recognised from the development of the Megah Rise project. 18
Slide 19: Property Key Events in 1H2021
PROPERTY KEY EVENTS IN 1H2021 Construction progress of Megah Rise has reached the roof level. 19
Slide 20: Capital and Other Commitments
CAPITAL AND OTHER COMMITMENTS 20
Slide 21: Capital and Other Commitments by Segment
CAPITAL AND OTHER COMMITMENTS BY SEGMENT RM432 mil RM397 mil RM12 mil RM115 mil • Grains & • Film Exhibition & • Property • Consumer Products Agribusiness Distribution & Others • New cinemas in • Renovation of existing • Investments in China • Construction of new Malaysia office building flour mills
Slide 22: Dividend Record
| PPB GROUP BERHAD DIVIDEND RECORD 22
Slide 23: Dividend Record
DIVIDEND RECORD Dividend Payout Ratio Dividend Paid/ Dividend Financial Per Share Payable Yield Group Company Year (sen) (RM Million) (%) (%) (%) 2021 # - Interim* 10 142 0.5 24 26 2020 - Interim 8 114 - Final 22 313 2.5 50 >100 - Special 16 228 46 655 2019 31 441 1.6 38 94 2018 28 399 1.6 37 89 201
Slide 24: Shariah Compliance Status
SHARIAH COMPLIANCE STATUS 24
Slide 25: Shariah Compliance Status
SHARIAH COMPLIANCE STATUS PPB is classified as shariah-compliant based on an updated list of shariah-compliant securities by the Securities Commission's Shariah Advisory Council dated 28 May 2021. 25
Slide 26: Prospects
| PPB GROUP BERHAD PROSPECTS 26
Slide 27: Prospects
PROSPECTS Global agricultural commodity prices have risen substantially this year, particularly for food commodities. It is expected that the food commodity prices will remain highly volatile given the potential disruption of supply in major producing countries affected by poor weather and rising de
Slide 28: Prospects
PROSPECTS Performance of the Grains and agribusiness segment has been adversely impacted by the spike in commodity prices, particularly in the second quarter of this year. Gross Profit margin compression was seen across various sub-segments of this segment. Management will continue to navigate the c
Slide 29: Prospects
PROSPECTS The Consumer products segment is expected to perform satisfactorily as it continues to expand its market place through the food services channel and e-commerce platform. The acceleration of the National Immunization Program (NIP) and the subsequent lifting of restrictions will be key for t
Slide 30: Prospects
PROSPECTS The Environmental engineering and utilities segment will continue to focus on replenishing its order book and exploring new project opportunities. Performance of the Property segment continued to be impacted by the ongoing Movement Control Order. Management remains steadfast in working on
Slide 31: Prospects
PROSPECTS The Covid-19 pandemic will continue to weigh down on the Film exhibition and distribution and Property segments. The Grains and agribusiness segment, which is in the production and distribution of staple food and services, is expected to ride through the challenging operating environment a
Slide 32: PPB Group Berhad
d PPB GROUP BERHAD == a