PPB GROUP BERHAD
Press and Analyst Briefing
Unaudited FY10 Results
3 March 2011
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 which apply only at the date of such statements. Accordingly, no reliance
should be placed on any forward-looking statements, express or implied, contained in this presentation.
1
Agenda
Group Financial Highlights
Review of Major Operations
5-Year Financial Performance
Dividend Record
Share Performance
Prospects for 2011
2
Group
Financial
Highlights
3
Financial Results FOR THE YEAR ENDED 31 DEC 2010
Grains Trading, Flour & Feed Milling
Consumer Products Distribution
Continuing
Operations
Film Exhibition & Distribution
Waste Management & Utilities
Property Development, Management &
Investment
Others
4
Financial Results FOR THE YEAR ENDED 31 DEC
CONTINUING OPERATIONS
2010 (RM)
2009 (RM)
Revenue
2.274 bil
2.054 bil
10.7%
Operating
Expenses
2.031 bil
1.893 bil
7.3%
PBT*
1.123 bil
1.455 bil
22.8%
Profit for the Year
1.062 bil
1.409 bil
24.6%
EPS
88.15 sen
117.77 sen
25.2%
0.678 bil
1.211 bil
44%
* Note :Share of Wilmar’s Profit
Change
5
Financial Ratios
CONTINUING & DISCONTINUED OPERATIONS
2010
2009
Profit for the Year
1.901 bil*
RM1.629 bil
16.7%
EPS
158.9 sen
136.3 sen
16.6%
14.2 %
11.5%
RM11.20
RM11.88
ROE Attributable to
Shareholders
Net Assets Per Share
Attributable to
Shareholders
5.7%
* Includes gain on sale of the sugar-related assets of RM841 million.
Segmental Information
FOR THE YEAR ENDED 31 DEC 2010
Consumer
Products
15.24%
Grains Trading,
Flour & Feed
Milling
52.01%
Total Revenue
Others*
16.11%
Continuing Operations
RM2.274 billion
Property
1.73%
Waste
Management &
Utilities
4.49%
Film Exhibition
10.42%
*Others :• Chemicals Trading &
Manufacturing [4.83%]
• Livestock Farming [3.93%]
• Dividends [1.76%]
• Packaging [2.51%]
• Engineering [1.72%]
• Shipping [0.77%]
• Others [0.59%]
7
Segmental Information
FOR THE YEAR ENDED 31 DEC 2010
Grains Trading,
Flour & Feed
Milling
42.83%
Others*
28.53%
Property
10.52%
Consumer
Products
4.44%
Total
Segment Profits
Continuing Operations
Film Exhibition
12.16%
RM354.9 million
Waste
Management &
Utilities
1.52%
*Others :• Investment Income [16.30%]
• Shipping [3.22%]
• Others [9.01%]
8
Review
Of
Major
Operations
9
Review of Major Operations
66.2%
93.2
154.9
1,400.00
1,200.00
1,000.00
800.00
600.00
400.00
200.00
0.00
GRAINS TRADING, FLOUR AND
FEED MILLING
9.4%
1,152.4
1,260.7
RM MILLION
Revenue for 2010 increased due to
higher flour sales complemented by its
mill in Indonesia which commenced
operations in October 2009.
Operating profit improved arising from
higher sales with better profit margins.
FYE 2009
FYE 2010
10
Review of Major Operations
RM MILLION
120.00
4.3%
ENVIRONMENTAL ENGINEERING,
WASTE MANAGEMENT & UTILITIES
100.00
40.00
25%
20.00
4.4
5.5
60.00
The revenue and operating profit
improved marginally due to better
cost management and higher profit
margin.
104.2
108.7
80.00
0.00
FYE 2009
FYE 2010
11
Review of Major Operations
FILM EXHIBITION AND DISTRIBUTION
RM MILLION
300
22.8%
Revenue for 2010 increased due to
contribution from newly opened
cinemas namely, GSC Tropicana (Jun
09), GSC East Coast Mall (Nov 09)
and GSC Suria Sabah (May 10) as
well as the additional 4 screens in
GSC IOI Mall (New Wing).
250
200
50
44.0
205.7
100
54.4%
28.5
252.6
150
0
FYE 2009
FYE 2010
Operating profit improved due to
contribution from new cinemas and the
overall improved performance of
cinemas driven by the strong films
released in the year.
12
Review of Major Operations
RM MILLION
Revenue for 2010 increased marginally
due to higher contribution from Cheras
Leisure Mall.
Operating profit improved due to the
creation of a new F&B area called
“Cravings Lane” and upward revision of
tenancy rates in Cheras Leisure Mall.
38.1
16.1
41.9
>100%
40.8
45
40
35
30
25
20
15
10
5
0
PROPERTY INVESTMENT & DEVELOPMENT
2.7%
FYE 2009
FYE 2010
Gains from disposal of properties totalling
RM22.3 million also contributed to the
significant jump in the FY10 profit.
13
Review of Major Operations
RM MILLION
8.7%
Consumer Products Distribution
400
350
300
50
16.0
100
19.4%
13.4
150
369.5
200
339.9
250
Revenue and operating profit for 2010
improved due to growth of its in-house
products mainly from the frozen food
business where sales had doubled from
RM8.36 million to RM16.64 million.
0
Revenue Operating
Profit
FYE 2009
FYE 2010
14
5-Year
Financial
Performance
15
5-Year PBT of PPB Group
2006
2007
2008
2009
1,121
1,732
1,401
763
2,000
1,900
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
0
840
RM Million
2010
Year
* Note : PBT for year 2010 excludes the gain of RM841 million from the disposal of the sugarrelated assets. If the profit is included, the PBT would be RM1.962 billion
16
Dividend
Record
17
Dividend Record
Dividend
Per Share
Gross Net
Net
Dividend
Yield
Group
Company
(%)
(%)
(%)
(sen)
(sen)
(RM Million)
2009
5
65
18
88
73
5
65
18
88
73
59.275
770.575
213.390
1,043.240
865.415
2008
2007
85
30
68.88
22.15
2006
20
14.55
Year
2010
-Interim
-Special
-Final*
*
Net
Dividend
Paid/payable
]
]
]
5.1
Payout Ratio
]
]
]
55.0
]
]
]
67.0
4.6
53.6
14.8
816.572
262.588
7.4
2.0
63.5
41.9
116.0
63.7
172.490
2.7
30.8
103.6
The Board recommended a final single tier dividend of 18 sen per share for the financial year
ended 31 December 2010 payable on 10 June 2011.
18
Share
Performance
19
Share Performance
FTSE Bursa KLCI
19.50
1,550.00
19.00
1,520.00
18.50
1,490.00
1,460.00
18.00
1,430.00
17.50
1,400.00
17.00
1,370.00
16.50
1,340.00
16.00
1,310.00
15.50
1,280.00
15.00
1,250.00
Jan
Feb
Mar
Apr May June July
Aug Sep
2010
Oct
Nov Dec Jan
Feb
2011
FTSE Bursa KLCI
PPB Share Price (RM)
PPB Closing price
Prospects
for
2011
21
Prospects for 2011
Rising commodity prices and fuel costs, coupled with
fluctuating currency exchange rates are the main
challenging factors which are expected to impact the
Group’s operating results for 2011.
The outlook for consumer demand in Malaysia and the
Asian region remains positive. The Group is confident
that the performance for 2011 will be satisfactory.
22
Questions
&
Answers
23