Scientex Bhd. · MYX:SCIENTX
Scientex Bhd — FY2022 Earnings Presentation
33 slides from Scientex Bhd's earnings presentation, Sep 29, 2022
Slide 1: Powered by Twin Engines: FY22 Corporate Update & Financial Results
(Company No.: 7867-P) Powered by Twin Engines Corporate Presentation FY22 Corporate Update & Financial Results 29 September 2022 IR Adviser
Slide 2: Financial Performance
Powered by Twin Engines FINANCIAL PERFORMANCE
Slide 3: Executive Summary
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Performance for packaging and property development segments largely maintained in FY2022 despite challenging external circumstances… Group quarterly revenue breached RM1 billion revenue mark for first time Packaging
Slide 4: Revenue Performance
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix FY22 topline growth driven by higher packaging sales… property development revenue largely sustained as construction progress pick up ❖ Packaging revenue rose 14.8% in FY22 on firm demand in domestic Revenue by segme
Slide 5: Profit Performance
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix FY22 operating profit impacted by higher costs faced by packaging and property development segments… Operating profit by segment ❖ FY22 operating profit declined 6.5% due to rising raw material and FY21 FY22 operatin
Slide 6: Cash Flow
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Healthy operating cashflow contributed by resilience of twin-core businesses… continued CAPEX to expand packaging and property development activities Net cash from operations Net cash used in investing activities FY2
Slide 7: Income Statement Summary
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Stable packaging demand and strong property billings driving 4Q22’s double-digit topline growth… 4Q22 4Q21 Change RM'mil FY22 FY21 Change Remarks 1111.3 970.6 14.5% Revenue 3,985.3 3,656.0 9.0% • FY22 revenue growth
Slide 8: Balance Sheet (Highlights)
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Balance sheet expands on CAPEX for new landbanks and machinery…gearing remains at comfortable level As at As at Balance Sheet (RM ‘000) Remarks 31.07.2022 31.7.2021 Property, Plant & Equipment 1,463,755 1,382,668 Inc
Slide 9: Packaging Review
Powered by Twin Engines PACKAGING REVIEW
Slide 10: Segment Performance: Packaging
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Packaging segment benefiting from stable demand in domestic and export markets… margins temporarily compressed due to raw material price volatility Operating Operating Profit Revenue Profit Operating Profit Margin Re
Slide 11: Operations Review: Packaging
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Resilient revenue and operating profit reflecting stable packaging demand… Revenue Operating Profit (Quarterly) (Quarterly) 655.9 659.4 614.4 621.4 583.8 618.8 671.5 617.4 678.1 692.8 749.7 740.8 55.5 65.2 59.3 71.1
Slide 12: Operations Review: Packaging – Taisei Lamick acquisition
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Partnering Japan’s leading producer of liquid and paste packaging… to expand regional market share General Food Dairies & Beverages • On 2 September 2022, announced proposed acquisition of 80.2% stake in Taisei Lamic
Slide 13: Growth Strategies: Packaging
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Expanding capabilities and capacities across packaging processes… new robotics stretch film plant expected to commence production in 4Q CY2022 2022 New Facility & Machinery • New robotics stretch film plant expected
Slide 14: Growth Strategies: Packaging
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Scientex a fully integrated end-to-end packaging provider… playing key role in driving sustainable transition and developing plastic circularity As a leading producer of packaging solutions, Scientex plays a key role
Slide 15: Growth Strategies: Packaging – Stretch Film Innovations
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Producing resource efficient stretch films with reduced materials usage… Stretch Film Innovations Nano 4.5 Micron Stretch Film • World thinnest stretch film produced directly from cast line in a single process • Sign
Slide 16: Growth Strategies: Packaging – Fully Recyclable Solutions
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Development of fully recyclable packaging solutions allow F&B and FMCG manufacturers to accelerate transition into sustainable packaging… Fully Recyclable Packaging Solutions • Leadership position in development of f
Slide 17: Growth Strategies: Packaging – Renewable Sources
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Introducing new packaging innovations from renewable sources… Fully Compostable Packaging • Packaging derived from natural sources and decomposes into water and CO2 by microorganism when under soil • Collaborating wi
Slide 18: Growth Strategies: Packaging – Recycled Content
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Supporting brand owners’ increasing demands for packaging with recycled contents… reducing consumption of virgin plastic resin Packaging with Recycled Content Packaging with PCR content • Asia first instant noodle pa
Slide 19: Property Development Review
Powered by Twin Engines PROPERTY DEVELOPMENT REVIEW
Slide 20: Segment Performance: Property Development
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Property development largely resilient despite launch delays and higher costs… Revenue Operating Profit Operating Profit (Annual) (Annual) Operating Margin -3.5% yoy -6.9% RM’m RM’m yoy 31.0% 33.0% 32.2% 30.8% 29.8%
Slide 21: Operations Review: New Property Launches
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Expanded affordable homes presence to Seremban with maiden launch… Aster Tulip 2-storey terrace houses Launched development in Seremban (109-acre) • Launched first two phases in July 2022 • 173 and 192 units 2-storey
Slide 22: Operations Review: New Property Launches
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Launched first high-rise residential development in Klang Valley with sustainable elements… Launched high-rise development in Taman Scientex Rawang, Selangor • Freehold residence in Rawang hotspot • 4-acre private Al
Slide 23: Growth Strategies: Property Development
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Continuing ambitious landbanking and cross-border growth strategy... to launch maiden project in Sungai Petani, Kedah in FY2023 Completed as at Jul’ 2022 (2,511 acres) 1 Cheras, Selangor: 139 acres,
Slide 24: Growth Strategies: Property Development
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Aiming to provide high-quality, reasonably priced homes to meet Malaysia’s growing need for affordable housing… Vision 2028 Growth Strategies ❖ To deliver 50,000 affordable ❖ Implementing cost optim
Slide 25: Sustainability
Powered by Twin Engines SUSTAINABILITY
Slide 26: Operations Review: ESG pillars
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Sustainable thinking embedded at the heart of business process and strategies… driving shared value for stakeholders and the planet • Responsible Business Conduct and Governance • Providing Affordable Housing • Produ
Slide 27: Operations Review: ESG pillars
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Pursuing innovation to create sustainable economic value for society at large… upholding best practices across the value chain Operations Review: ESG pillars 27
Slide 28: Operations Review: ESG pillars
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Leading the way in pioneering transformative solutions for a better tomorrow… 7.8 Operations Review: ESG pillars 28
Slide 29: Operations Review: ESG pillars
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Safeguarding employees well-being and providing local communities with opportunities for socio-economic advancement… Operations Review: ESG pillars 29
Slide 30: Investment Merits
Powered by Twin Engines INVESTMENT MERITS
Slide 31: Investment Merits
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Twin growth engines with further potential to expand... attractive proxy to the burgeoning packaging sector and Malaysia’s affordable property market Regional leader in total solutions for packaging Valuations @ 26 S
Slide 32: Dividend History
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Kept dividend policies even in high-growth model… total dividends of 9 sen in respect of FY2022 RM’m Dividend History 74.0% 49.2% 48.0% 49.8% 52.1% 36.6% 36.1% 35.9% 31.4% 28.7% 28.8% 32.1% 33.4% 31.7% 30.7% 30.2% 33
Slide 33: Thank You
Powered by Twin Engines Thank You Contacts: • Ms. Choo Pooi Luen plchoo@scientex.com.my T: 03-5524 8888/03-5519 1325 • Ms. Julia Pong julia@aquilas.com.my T: 03-2711 1391