PPB Group Bhd. · MYX:PPB
PPB Group Bhd — FY2020 Earnings Presentation
36 slides from PPB Group Bhd's earnings presentation, February 2021
Slide 1: Unaudited Results for the Financial Year Ended 31 December 2020
UNAUDITED RESULTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 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
Slide 2: Agenda
AGENDA GROUP FINANCIAL HIGHLIGHTS REVIEW OF MAJOR OPERATIONS Financial Performance Key Events in 2020 Developments for 2021 5-YEAR PBT TRACK RECORD 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 for the Year Ended Dec 2020
FINANCIAL RESULTS FOR THE YEAR ENDED 31 DEC 2020 (Figures in RM) 2020 2019 Change Revenue 4.19 bil 4.68 bil (10.5%) Operating Expenses 4.17 bil 4.48 bil (6.9%) Share of Wilmar’s Profit 1.24 bil 0.96 bil 29.4% PBT 1.42 bil 1.27 bil 11.7% Profit attributable to 1.32 bil 1.15 bil 14.3% owners of the pa
Slide 5: Segmental Information: Segment Revenue
SEGMENTAL INFORMATION FOR THE YEAR ENDED 31 DEC 2020 1% 1% 4% 3% 15% Total Segment Revenue: RM 4.19 billion Grains & Agribusiness Consumer Products Film Exhibition & Distribution Environmental Engineering & Utilities 76% Investments & Other Operations Property 5
Slide 6: Segmental Information: Segment Profit
SEGMENTAL INFORMATION FOR THE YEAR ENDED 31 DEC 2020 19% 2% 1% Total Segment Profit: RM1.42 billion -9% Grains & Agribusiness Consumer Products n.m Film Exhibition & Distribution Environmental Engineering & Utilities Investments & Other Operations 87% Property n.m. = Not Meaningful 6
Slide 7: Review of Major Operations
REVIEW OF MAJOR OPERATIONS Financial Performance Key Events in 2020 Developments for 2021 7
Slide 8: Grains & Agribusiness: Financial Performance
GRAINS & AGRIBUSINESS FINANCIAL PERFORMANCE - + 28% Revenue Segment Profit FY20 RM3.29 bil FY20 RM272 mil FY19 RM3.30 bil FY19 RM213 mil Segment revenue remained relatively unchanged. Improved segment profit mainly attributable to lower raw material costs and higher share of profit from associat
Slide 9: Grains & Agribusiness: Developments in 2021
GRAINS & AGRIBUSINESS DEVELOPMENTS IN 2021 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 - + >100% Revenue Segment Profit FY20 RM628 mil FY20 RM32 mil FY19 RM627 mil FY19 RM0.6 mil Segment profit was higher mainly attributable to a one-off gain on step- acquisition of an associate of RM21 million and better performance at bakery division. 10
Slide 11: Consumer Products: Key Events in 2020
CONSUMER PRODUCTS KEY EVENTS IN 2020 On 24 June 2020, FFM entered into an agreement to acquire the entire 70% shareholding in FFM Further Processing Sdn Bhd from BRF Foods GmbH for a total consideration of RM 31.5 million. The acquisition has been completed and FFP is now a wholly-owned subsidiary
Slide 12: Consumer Products: Key Events in 2020
CONSUMER PRODUCTS KEY EVENTS IN 2020 FFM Marketing Sdn Bhd launched :- Snow Brand MBP® NeoMilk in July 2020. Marina Pasta Sauce with Tuna in November 2020. The Italian Baker Sdn Bhd launched :- Massimo Primo sandwich roll in April 2020 Massimo Lemon Krunch cream roll in October 2020. 12
Slide 13: Consumer Products: Developments in 2021
CONSUMER PRODUCTS DEVELOPMENTS IN 2021 The construction of a new production facility for halal-certified frozen food in Pulau Indah at an estimated cost of RM22 million has just been completed and the commission date has yet to be fixed. 13
Slide 14: Film Exhibition & Distribution: Financial Performance
FILM EXHIBITION & DISTRIBUTION FINANCIAL PERFORMANCE - 79% - >100% Revenue Segment (Loss)/Profit FY20 RM114 mil FY20 RM(136) mil FY19 RM556 mil FY19 RM66 mil Performance was significantly impacted by reduced admissions from prolonged total and partial closures of cinemas and deferment of movie tit
Slide 15: Film Exhibition & Distribution: Key Events in 2020
FILM EXHIBITION & DISTRIBUTION KEY EVENTS IN 2020 Adopted the new norm in cinema operating procedures to ensure the safety and well-being of moviegoers and cinema staff. Galaxy Studio JSC, Vietnam opened 1 new cinema :- OPENING LOCATION SCREENS SEATS AREA REGION DATE 10-Jan-2020 CoopXtra Linh 5
Slide 16: Film Exhibition & Distribution: Key Events in 2020
FILM EXHIBITION & DISTRIBUTION KEY EVENTS IN 2020 Developed revenue diversification initiatives to optimise the use of GSC’s existing assets, such as new media advertising packages, site branding, thematic and experiential events and corporate collaborations. Launched Keepsake, an e-commerce pla
Slide 17: Film Exhibition & Distribution: Developments in 2021
FILM EXHIBITION & DISTRIBUTION DEVELOPMENTS IN 2021 On 23 February 2021, GSC signed an Asset Sale Agreement to acquire the majority of MBO Cinemas’ assets. The acquisition is expected to complete by end-June 2021. Will launch GSC Rewards – GSC’s upgraded, new and improved loyalty programme that
Slide 18: Environmental Engineering and Utilities: Financial Performance
ENVIRONMENTAL ENGINEERING AND UTILITIES FINANCIAL PERFORMANCE - 3% + 28% Revenue Segment Profit FY20 RM190 mil FY20 RM14 mil FY19 RM195 mil FY19 RM11 mil Segment profit increased mainly attributable to share of profit from joint venture as a one-time impairment of RM8.9 million of an overseas join
Slide 19: Environmental Engineering & Utilities: Key Events in FY2020
ENVIRONMENTAL ENGINEERING & UTILITIES KEY EVENTS IN FY2020 Completed one water project in Sarawak and one sewage network pump station in Kuala Lumpur with a total contract value of RM33 million. Secured two water projects in Johor and Sarawak with a total contract value of RM110 million. Order
Slide 20: Environmental Engineering & Utilities: Developments in 2021
ENVIRONMENTAL ENGINEERING & UTILITIES DEVELOPMENTS IN 2021 Tendered for water projects in Malaysia and Brunei valued at more than RM400 million. Continue to focus on opportunities in our core sectors. 20
Slide 21: Property: Financial Performance
PROPERTY FINANCIAL PERFORMANCE + 4% - 72% Revenue Segment Profit FY20 RM67 mil FY20 RM4 mil FY19 RM65 mil FY19 RM14 mil The lower segment profit was mainly attributable to lower rental income coupled with absence of a one-time gain of RM4.7 million on disposal of property in FY2019. 21
Slide 22: Property: Key Events in 2H2020
PROPERTY KEY EVENTS IN 2H2020 Construction progress of Megah Rise has reached Level 37. The Ministry of Housing has approved our Extension of Time (EOT) application to complete the project under the ‘COVID-19’ Act 2020. 22
Slide 23: 5-Year PBT Track Record
| PPB GROUP BERHAD 5- YEAR PBT TRACK RECORD
Slide 24: 5-Year PBT of PPB Group
5-YEAR PBT OF PPB GROUP RM Million CAGR* +3.77% 1,500 1,421 1,400 1,300 1,271 1,272 1,211 1,200 1,168 1,100 1,000 900 800 700 2016 2017 2018 2019 2020 Year * CAGR = Compound Annual Growth Rate 24
Slide 25: Capital and Other Commitments
CAPITAL AND OTHER COMMITMENTS 25
Slide 26: Capital and Other Commitments by Segment
CAPITAL AND OTHER COMMITMENTS BY SEGMENT RM425 mil RM383 mil RM51 mil RM31 mil • Grains & • Film Exhibition & • Property • Consumer Products Agribusiness Distribution & Others • Investments in China • New cinemas in • Investment • Construction of new flour mills Malaysia commitment production facili
Slide 27: Dividend Record
| PPB GROUP BERHAD DIVIDEND RECORD 27
Slide 28: Dividend Record
DIVIDEND RECORD Dividend Payout Ratio Dividend Paid/ Dividend Per Share Payable Yield Group Company Year (sen) (RM Million) (%) (%) (%) 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 2017 30 356 1.7 30 93 2016 25 296 1.6 28 81
Slide 29: Status of Shariah Compliance
STATUS OF SHARIAH COMPLIANCE 29
Slide 30: Status of Shariah Compliance
STATUS OF SHARIAH COMPLIANCE PPB is classified as shariah-compliant based on an updated list of shariah-compliant securities by the Securities Commission's Shariah Advisory Council dated 27 November 2020. 30
Slide 31: Prospects
| PPB GROUP BERHAD PROSPECTS 31
Slide 32: Prospects
PROSPECTS The Grains and agribusiness segment is expected to weather the volatile commodities market. The segment, which is in the business of production and distribution of staple food, is expected to perform satisfactorily, riding on its strong technical competency, extensive marketing and distrib
Slide 33: Prospects
PROSPECTS The Film exhibition and distribution segment performance will be weighed down by intermittent cinema closures, operating in reduced seating capacity due to strict adherence to maintaining social distancing, and deferment of movie titles. Management is confident that the movie industry will
Slide 34: 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 remains challenging, both in the area of investment properties and property development. Management will co
Slide 35: Prospects
PROSPECTS The Covid-19 pandemic will continue to weigh on our Film exhibition and distribution and Property segments. The other main business segments, which are mainly in the production and distribution of staple food and services, are expected to perform satisfactorily. Wilmar's performance will c
Slide 36: PPB Group Berhad
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