Th Plantations Bhd. · MYX:THPLANT

Th Plantations Bhd — Shareholder Meeting (June 2021)

28 slides from Th Plantations Bhd's shareholder meeting presentation, Jun 24, 2021

  1. Slide 1: 47th Annual General Meeting

    ANNEXURE A th 47 ANNUAL GENERAL MEETING 24 JUNE 2021 MUZMI MOHAMED Chief Executive Officer 1

  2. Slide 2: Overview

    THP 01 OVERVIEW FY2020: FINANCIAL & OPERATIONAL 02 REVIEW CHALLENGES 03 & OUTLOOK STRATEGIC RECOVERY 04 PLAN 2

  3. Slide 3: THP Overview | At a Glance FY2020

    THP OVERVIEW | AT A GLANCE FY2020 CPO PRODUCTION FFB PRODUCTION FFB PROCESSED PBT PAT REVENUE 169,748mt 836,739mt 868,696mt RM54.46m RM27.46m RM555.10m FY19 : 188,051mt FY19 : 917,072mt FY19 : 937,815mt FY19 : -RM245.01m FY19 : -RM273.13m FY19 : 493.65m Approximate 97, 289 Ha of land bank 37 Estates

  4. Slide 4: Land Bank Distribution by Region FY2020

    LAND BANK DISTRIBUTION BY REGION FY2020 PENINSULAR SABAH SARAWAK INDONESIA TOTAL OIL PALM Mature 11,058 7,345 31,438 1,002 50,843 Immature 1,372 1,261 1,557 774 4,964 Total Planted 12,430 8,606 32,995 1,776 55,807 In-course of planting 482 474 - - 956 Others 542 850 18,268 5,153 24,813 RUBBER / TEAK

  5. Slide 5: Area Statement | Age Profile FY2020

    AREA STATEMENT | AGE PROFILE FY2020 TOTAL AREA: 97,289 Ha MATURE 5,315 OLD MATURE 1,882 3% 20 – 25 years > 25 years TOTAL PLANTED: 56,763 Ha YOUNG MATURE 14,358 52% 11% 31% 25% 4 - 9 years IMMATURE OTHERS MATURE TEAK / RUBBER OIL PALM PRIME MATURE 29,288 5% 1% IMMATURE IN-COURSE OF 5,920 52% 11% IMM

  6. Slide 6: FY2020: Financial & Operational Review

    THP 01 OVERVIEW FY2020: FINANCIAL & OPERATIONAL 02 REVIEW CHALLENGES 03 & OUTLOOK STRATEGIC RECOVERY 04 PLAN 6

  7. Slide 7: Financial Performance FY2020

    FINANCIAL PERFORMANCE FY2020 YoY FY2020 FY2019 % RM’000 RM’000 Revenue 12.45 555,097 493,650 Cost of Sales 6.45 (387,651) (414,362) Gross Profit / (Loss) 276.60 177,392 47,104 Results from Operating Activities 173.03 124,412 (170,361) Profit/(Loss) Before Tax 122.23 54,462 (245,009) Profit/(Loss) Af

  8. Slide 8: Financial Performance FY2020

    FINANCIAL PERFORMANCE FY2020 Liquidity and high debt levels are still the main issue… YoY FY2020 FY2019 % RM’000 RM’000 Total Assets (2.61) 2,665,217 2,736,602 Total Liabilities 5.40 1,815,124 1,918,798 Total Equity 3.95 850,093 817,804 Borrowings 9.38 1,159,467 1,279,415 Trade and Other Payables (2

  9. Slide 9: Financial Performance FY2020: Main Factors

    FINANCIAL PERFORMANCE FY2020 Main factors affecting financial performance … YoY FY2020 FY2019 % RM/mt RM/mt 1. HIGHER SELLING PRICE CPO 28.94 2,537.75 1,968.10 PK 31.08 1,536.47 1,172.18 FFB 36.87 515.62 376.73 2. HIGHER OPERATING COSTS Estate Production Cost (9.00) 237.94 218.09 RM’000 RM’000 3. LO

  10. Slide 10: Operational Review FY2020

    OPERATIONAL REVIEW FY2020 OPERATIONAL PERFORMANCE THP INDUSTRY 2019 2020 % 2019 2020 % FFB Production 917,072 836,739 (8.76) NA NA NA FFB Received by Mill NA NA NA 99,065,364 96,969,316 (2.12) FFB Processed 937,815 868,696 (7.37) NA NA NA FFB Sold Outside (159,652) (123,326) (22.75) NA NA NA CPO Pro

  11. Slide 11: Challenges & Outlook

    THP 01 OVERVIEW FY2020: FINANCIAL & OPERATIONAL 02 REVIEW CHALLENGES 03 & OUTLOOK STRATEGIC RECOVERY 04 PLAN 11

  12. Slide 12: Business Landscape FY2020

    CHALLENGES & OUTLOOK BUSINESS LANDSCAPE FY2020  Overall palm oil industry perform better in 2020 , due to strong increase in the average prices of palm oil commodities in the 2H2020.  Higher prices were mainly buoyed by lower production output and low inventories locally.  Higher prices were also

  13. Slide 13: Palm Product Prices FY2020

    CHALLENGES & OUTLOOK PALM PRODUCT PRICES FY2020 CPO Prices (RM/MT) 3,900.00 3,624.50 CPO Selling Price – MPOB Peninsular Malaysia 3,436.00 2016 2,653 3,500.00 3,015.50 2017 2,783 3,100.00 2,924.00 2,983.00 2,818.00 2,714.50 2,686.00 2018 2,233 2,700.00 2,520.50 2,383.00 2,302.00 2,413.00 2,300.00 2,

  14. Slide 14: Challenges - Operations

    CHALLENGES & OUTLOOK CHALLENGES - OPERATIONS 1. LABOUR SHORTAGE  Border control due to COVID-19 affected the arrival of new foreign workers and re-entry of legalised workers  Cost to recruit labour increases  THP Worker Ratio (worker:Ha) is at 1:12 compared to the industry of 1:10  Implement str

  15. Slide 15: Outlook - Economy & the Industry

    CHALLENGES & OUTLOOK OUTLOOK - ECONOMY & THE INDUSTRY Long Term Industry Outlook: Demand vs Supply Global Human Population OVER 9 BILLION BY 2050 ‘World will have to produce about 60% to 70% more food in the next 35 years’ Source : Oil World/MPOC - Techno Economic Marketing For Palm Oil (TEMPO), 18

  16. Slide 16: Outlook - Economy & the Industry (FY2021)

    CHALLENGES & OUTLOOK OUTLOOK - ECONOMY & THE INDUSTRY (FY2021) BULLISH FACTORS  Tight Palm and other vegetable oils stock  Stronger palm and others vegetable oils BEARISH FACTORS demand in China & India  Recovery of palm oil production & stock in Malaysia & Indonesia in the 2nd Half  Weather unc

  17. Slide 17: Strategic Recovery Plan

    THP 01 OVERVIEW FY2020: FINANCIAL & OPERATIONAL 02 REVIEW CHALLENGES 03 & OUTLOOK STRATEGIC RECOVERY 04 PLAN 17

  18. Slide 18: Strategic Recovery Plan FY2020

    STRATEGIC RECOVERY PLAN FY2020 The Plan consists of Rationalisation of Assets and Transformation of Operations STRATEGIC OBJECTIVES Rationalisation of Assets Divestment  To consolidate & manage balance sheet Capital Structure  To pare down debt, de-gear and improve liquidity Transformation of Oper

  19. Slide 19: Progress - Rationalisation of Assets FY2020

    STRATEGIC RECOVERY PLAN FY2020 1. THE PROGRESS - RATIONALISATION OF ASSETS FY2020 Details Status Disposal of 70% equity interests in THP-YT to TDM Completed Berhad, for total consideration of RM 69 million. 3Q2020 Disposal of 100% equity interests in BSV and MWM to Company’s decision not to proceed

  20. Slide 20: Transformation of Operations

    STRATEGIC RECOVERY PLAN FY2020 2. TRANSFORMATION OF OPERATIONS Transformation Plan : Operational Efficiency  Use of new planting materials and high standards of planting to achieve higher yield and OER  Replanting programme to achieve sustainable optimum crop production and palm age MAIN INITIATIV

  21. Slide 21: Re-organisation of Operational Section

    STRATEGIC RECOVERY PLAN FY2020 2. TRANSFORMATION OF OPERATIONS Performance Improvement Programme 1 – Re-organisation of Operational Section In enhancing the implementation of operational initiatives, THP had undertaken the re-organisation approach as follows: Redefining of Agronomy Department to ove

  22. Slide 22: Performance Improvement Programme 2 – Mechanisation

    STRATEGIC RECOVERY PLAN FY2020 2. TRANSFORMATION OF OPERATIONS Performance Improvement Programme 2 – Mechanisation  Mechanisation is the way forward to overcome the acute labour shortage for fruits harvesting and other field operations.  THP made an imperative move of on mechanising some parts of

  23. Slide 23: Mechanisation Targets (in 3 years)

    STRATEGIC RECOVERY PLAN FY2020 2. TRANSFORMATION OF OPERATIONS Mechanisation Targets (in 3 years) Existing Area (Ha)* Target Area (Ha)* Achievment Todate (%) Harvesting 10,598 21,173 50% Manuring 15,350 21,173 73% Weed Spraying 21,173 21,173 100% * For Peninsular & Sabah estates only Reduction in nu

  24. Slide 24: Accelerating Replanting Program

    STRATEGIC RECOVERY PLAN FY2020 2. TRANSFORMATION OF OPERATIONS Performance Improvement Programme 3 – Accelerating Replanting Program Replanting Policy : 5% of the total planted area annually - maintaining an immature area of approx. 15% Objectives  Rationalise the age profiles for sustainable yield

  25. Slide 25: The Trajectory

    STRATEGIC RECOVERY PLAN FY2020 THE TRAJECTORY TARGET @ FY2019 FY2020 SRP (2019-2021) 2030 Gearing Gearing Gearing 1.48x 1.26x 0x Yield (MT/Ha) Yield (MT/Ha) Yield (MT/Ha) 18.18 16.11 De-gear and improve liquidity 23.76 OER (%) OER (%) OER (%) Enhance Performance Improvement Program 20.05 19.54 (emph

  26. Slide 26: Progress of Strategic Recovery Plan

    STRATEGIC RECOVERY PLAN FY2020 PROGRESS OF STRATEGIC RECOVERY PLAN SRP has began to bear results - Quarterly financial performance have improved 200,000 30,000 25,000 23,864.00 150,000 19,581.00 20,000 15,000 100,000 13,349.00 10,000 5,000 50,000 3,195.00 0 0 -5,000 1Q2020 2Q2020 3Q2020 4Q2020 1Q202

  27. Slide 27: Moving Forward: Our Future

    STRATEGIC RECOVERY PLAN FY2020 MOVING FORWARD: OUR FUTURE We aim to reposition Building better Endeavouring into THP as a strong & prospects for future new business ventures robust pure upstream growth organically palm oil player  We aim to set up a strong base, highly profitable and efficient medi

  28. Slide 28: Thank You

    TH PLANTATIONS BERHAD Registration No. 197201001069 (12696-M) THANK YOU

TH Plantations Berhad — Shareholder Meeting (June 2021) on 6ix