Slide 1: Powered by Twin Engines: 2Q17 Corporate Update & Financial Results
(Company No.: 7867-P) Powered by Twin Engines Corporate Presentation 2Q17 Corporate Update & Financial Results 22 March 2017 IR Adviser
Slide 2: Contents
CONTENTS • Operations Review & Growth Plans Powered by Twin Engines • 2Q17 Financial Review • Investment Merits • Corporate Profile 2
Slide 3: Operations Review & Growth Plans
Powered by Twin Engines OPERATIONS REVIEW & GROWTH PLANS
Slide 4: Operations Review: Manufacturing
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix 2Q17 performance rebounded from 1Q17 particularly for consumer packaging… FY2017 tonnage to ramp up in line with newly expanded capacities Average monthly sales tonnage (MT ‘000) Industrial Packaging Consumer Packagi
Slide 5: Operations Review: Manufacturing segment revenue
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Increasing contribution from consumer packaging segment with growing CPP and BOPP sales… 1H17 manufacturing revenue marginally unchanged at Segment Revenue (RM ‘mil) at RM791.6 mil (1H16: RM794.0 mil) Industrial
Slide 6: Growth Plans: Manufacturing
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Consumer packaging expansions to fully complete in end-2017… to focus on ramping up capacity utilisation Consumer packaging expansion plan ▪ CPP Noting strong pickup qoq especially from export marke
Slide 7: USD25 mil investment in U.S. stretch film plant
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix USD25 mil investment in U.S. stretch film plant on track for completion in end- 2017… On 10 November 2016, Scientex announced CAPEX of USD25 mil to set up new stretch film manufacturing plant in A
Slide 8: Operations Review: Property
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Launched RM190 mil worth of new properties in 2Q17… property unbilled sales of approximately RM600 mil 1H17 property revenue rose 9.0% to RM329.4 mil (1H16: RM302.0 mil) ▪ Group’s development projects seeing stable
Slide 9: 2Q17 Financial Review
Powered by Twin Engines 2Q17 FINANCIAL REVIEW
Slide 10: 2Q17 Income Statement Summary
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Achieved record quarterly revenue and net profit in 2Q17... 2Q17 2Q16 Change RM'mil 1H17 1H16 Change Remarks Ma rgi na l growth i n 1H17 due to wea ker contri buti on from 586.2 545.4 7.5% Revenue 1,120.9 1,096.0 2.3
Slide 11: Revenue & EBITDA Segmentation
Operations Review Growth Strategies Financial Highlights Financial Highlights Investment Merits Appendix Group EBITDA dipped slightly on weaker manufacturing contribution… while property still riding on strong demand for affordable homes 1H16 Group Revenue: RM1,096.0 mil 1H17 Group Revenue: RM1,120.
Slide 12: Financial Review: Manufacturing
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Consumer packaging segment growing steadily… Slightly dampened industrial packaging exports on weaker economy but recovery in sight Manufacturing Revenue & Gross Margin Manufacturing Revenue (by Segment) RM’mil RM’mi
Slide 13: Financial Review: Property Development
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Property division benefitting from sturdy demand for affordable homes… Revenue & Gross Margin RM’mil +9.0% 47.0% 44.4% 44.2% 42.3% 38.5% 40.2% 40.4% Property segment revenue rose 9.0% due to stable sales and construc
Slide 14: Balance Sheet (Highlights)
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Strong operational cashflow to reduce borrowings and fund future plans… As at As at Balance Sheet (RM ‘000) Remarks 31.1.2017 31.7.2016 Property, Pl a nt & Equi pment 965,601 952,519 Due to i nves tments i nto new ma
Slide 15: Investment Merits
Powered by Twin Engines INVESTMENT MERITS
Slide 16: Investment Merits
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix A high-growth proposition all-round... attractive proxy to the burgeoning packaging sector and Southern Malaysia’s affordable property market MANUFACTURING PROPERTY DEVELOPMENT • One of the world’s largest stretch fi
Slide 17: Dividend History
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Group has dividend policy of minimum 30% net profit payout… RM’mil 74.0% Dividend History 49.2% 48.0% 49.8% 52.1% 36.6% 36.1% 33.4% 35.9% 31.4% 26.6% 28.7% 28.8% 32.1% 31.7% 30.7% 5.9 14.2 17.2 10.8 19.4 25.8 30.1 35
Slide 18: Thank You
Powered by Twin Engines Thank You Contacts: Ms. Jocelyn Ng jocelynbnng@scientex.com.my T: 03-5519 1325 Ms. Julia Pong julia@aquilas.com.my T: 03-2711 1391