PPB GROUP BERHAD
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Transcript of PPB GROUP BERHAD
PPB GROUP BERHADPPB GROUP BERHAD
HALF YEAR RESULTS HALF YEAR RESULTS
30 JUNE 200530 JUNE 2005
Presented by Koh Mei LeePresented by Koh Mei Lee
Senior Manager (Corporate Senior Manager (Corporate Affairs)Affairs)
agendaagenda
1. group financial highlights1. group financial highlights
2. dividend record2. dividend record
3. share information3. share information
4. corporate development4. corporate development
5. prospects for 20055. prospects for 2005
financial results
Jan to June
2005 2004 Change
RM mil RM mil %
Revenue 5,317 5,397 (1.5)
Profit from operations 242 275 (12.2)
Net profit from investing activities 54 20 168.8
Share of associates/ JV 27 45 (40.6)
Finance costs (7.7) (8.2) (5.9)
PBT 315 332 (5.2)
Tax (89) (86) 4.1
PAT 226 246 (8.4)
Minority interest (37) (75) (50.8)
Net profit 189 171 10.2
EPS (sen) 15.91 17.44 (8.8)
segmental information – Jan to June 2005
Sugar & caneSugar & cane7.1%7.1%
Grains trading,Grains trading,flour & feedflour & feed
milling milling 7.6%7.6%
Edible oilsEdible oilsrefining & tradingrefining & trading
71.8%71.8%
Oil palmOil palmplantationsplantations
4.8%4.8%
Waste Waste management & management &
utilities utilities 0.6%0.6%
Film Film exhibitionexhibition
1%1%
PropertyProperty0.4%0.4%
OthersOthers6.7%6.7%
RevenueRevenueTotal RM5.3 billionTotal RM5.3 billion
segmental information – Jan to June 2005
Sugar & caneSugar & cane21%21%
Grains trading,Grains trading,flour & feedflour & feed
milling milling 7.1%7.1%
Edible oilsEdible oilsrefining & tradingrefining & trading
23.8%23.8%
Oil palmOil palmplantationsplantations
27.1%27.1%
Waste Waste management & management &
utilities utilities (0.7%)(0.7%)
Film Film exhibitionexhibition
3.2%3.2%
PropertyProperty2.6%2.6%
OthersOthers15.9%15.9%
Operating ProfitsOperating ProfitsTotal RM242.1 millionTotal RM242.1 million
major contributors to group operating profit
78
53
36
18
45
60
79
68
0
10
20
30
40
50
60
70
8030-Jun-04 30-Jun-05RM MillionRM Million
Sugar Sugar & cane& cane
Grains Grains trading, flour trading, flour
& feed & feed millingmilling
Edible oils Edible oils refining & refining &
tradingtrading
Oil palm Oil palm plantationsplantations
Reasons for higher/ lower Reasons for higher/ lower profitsprofits
Lower profit from sugar & caneLower profit from sugar & caneHigher raw material cost.Higher raw material cost.
Lower profit from grains Lower profit from grains trading, flour & feed millingtrading, flour & feed milling
Higher raw material cost.Higher raw material cost.
Higher profit from edible oils Higher profit from edible oils refining & tradingrefining & trading
Better overall refining margin Better overall refining margin and higher sales volume.and higher sales volume.
Lower profit from oil palm Lower profit from oil palm plantationsplantations
Lower CPO prices.Lower CPO prices.Average realised CPO price :-Average realised CPO price :-
Jan to June 2004Jan to June 2004RM1,750RM1,750
Jan to June 2005Jan to June 2005RM1,354RM1,354
3333%%
5151%%
3434%%
1414%%
major contributors to group operating profit
1
(2)
68
18
7
18
40
(5)
0
5
10
15
20
25
30
35
4030-Jun-04 30-Jun-05RM MillionRM Million
Waste Waste management management
& utilities& utilities
Film Film exhibitionexhibition
PropertyProperty OthersOthers
Reasons for higher/ lower Reasons for higher/ lower profitsprofits
Loss from waste management Loss from waste management & utilities& utilities
Fewer projects.Fewer projects.
Higher profit from film Higher profit from film exhibitionexhibition
Release of strong commercial Release of strong commercial films and higher admissions.films and higher admissions.
Lower profit from propertyLower profit from propertyMost of the completed Most of the completed
residential houses have been residential houses have been sold.sold.
Higher profit from othersHigher profit from othersManufacturing & trading (up Manufacturing & trading (up
RM14 million)RM14 million)Livestock (up RM9 million)Livestock (up RM9 million)Shipping (up RM5 million)Shipping (up RM5 million)
301301%%
3636%%
6363%%
120120%%
share of associates/ JV’s results
Registered lower profits due to difficult trading conditions faced by associated company in commodity trading.
45
27
05
101520253035404550
2004 2005Jan to JuneJan to June
RM RM MillionMillion
41%41%
pbt for 4 years and 6 months to 2005
322
501
707 734
315
0
100
200
300
400
500
600
700
800
2001 2002 2003 2004 6 months 2005
Year
RM MillionRM Million
cash and borrowings
RM30m
RM538m
RM508m
RM150m
RM358m
RM180m
RM652m
RM472m
RM165m
RM307m
Net cash
Cash &deposits
Totalborrowings
LTborrowings
STborrowings
Dec-04 Jun-05
dividend record
Dividend
Per Share
Net
Dividend
Net
DividendPayout ratio
Gross Net Paid Yield Group Company
Year (sen) (sen) (RM Million) (%) (%) (%)
2005* 5.05.0 3.63.6 42.67842.678 1.01.0 22.622.6 47.047.0
2004 30.0 23.7 140.482 3.5 35.1 75.4
2003 25.0 20.5 100.675 3.1 27.1 72.3
2002 46.5 43.0 210.968 10.9 86.8 97.6
2001 20.0 15.8 68.688 4.8 40.3 49.1
* The Board declared an interim dividend of 5 sen in respect of the financial * The Board declared an interim dividend of 5 sen in respect of the financial year 2005 based on the enlarged capital base (compared with 10 sen year 2005 based on the enlarged capital base (compared with 10 sen comprising 5 sen less tax and 5 sen tax exempt for 2004).comprising 5 sen less tax and 5 sen tax exempt for 2004).
share performance
0
1
2
3
4
5
6
7
8
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mac Apr May 07-Jun
08-Jun
July Aug Sept
PPB
Shar
e Pr
ice
(RM
)
760
780
800
820
840
860
880
900
920
940
960
Com
pos
ite In
dex
PPB Close (Last Trade) KLCI Close (Last Trade)
Y 2004Y 2004 Y 2005Y 2005
RM6.50RM6.50
819.86819.86
RM7.10*RM7.10*
876.92*876.92*
RM4.10RM4.10##
909.18#909.18#
BI (8.6.05)BI (8.6.05)
*Pre Bonus Issue*Pre Bonus Issue RM 7.10RM 7.10
>Post Bonus Issue>Post Bonus Issue RM3.60RM3.60
#Closing price on 2.9.05#Closing price on 2.9.05 RM4.10RM4.10
RM3.60RM3.60>>
879.44879.44>>
corporate development
Bonus issue
Share capital 31 Dec 2004 30 Jun 2005 Change
Authorised 1,000,000,000 2,000,000,000 +100%
Issued and paid up 592,749,941 1,185,499,882 +100%
Share price RM3.40* RM3.72 +9%+9%
Market capitalization 4.03 billion 4.41 billion +9%+9%
No. of shareholders 10,547 11,294 +7%+7%
*share price adjusted for bonus issue.
Jan to Dec 2004 Jan to Aug 2005
Average daily volume** 572,418 625,696 9%9%
**adjusted for bonus issue.
prospects for 2005
Sugar, flour and feed The food division anticipates a challenging 2nd half year in view
of the rising costs of production.
Edible oils refining The profit performance should be remain satisfactory with strong
demand for palm oil products and increase in sales volume.
Oil palm plantation FFB production is expected to grow at a compound rate of 10%
p.a over the next few years. CPO prices remain volatile Profits may not match that of previous year if current prices
remain.
prospect for 2005
Waste management & utilities Continue to explore project opportunities both locally and
overseas. Profit may not match last year’s performance in view of fewer
projects.
Film exhibition The expected strong line up of films in the 2nd half of 2005 should
enable the strong performance to continue for the year.
Property Continue to explore landbank for expansion. Profits will be lower as most of the residential projects have been
completed and sold.
Overall Group Performance Envisaged to be satisfactory.