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PPB GROUP BERHAD

PPB GROUP BERHAD. Final Results Year Ended 31 December 2006 Presented by Koh Mei Lee Senior Manager (Corporate Affairs). Agenda. Group Financial Highlights Financial Results for Year 2006 Segmental Information Major Contributors to Group’s Profit Cash & Borrowings.

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PPB GROUP BERHAD

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  1. PPB GROUP BERHAD Final Results Year Ended 31 December 2006 Presented by Koh Mei Lee Senior Manager (Corporate Affairs)

  2. Agenda • Group Financial Highlights • Financial Results for Year 2006 • Segmental Information • Major Contributors to Group’s Profit • Cash & Borrowings 2. Profit Before Tax for Years 2002 - 2006 3. Dividend Record for Years 2002 - 2006 4. Share Performance for Year 2006

  3. Agenda 5. Capital Commitment as at 31 Dec 2006 6. Expansion / Future plans • 7. Proposed Disposals of PPBOP, PGEO • and KOG • Introduction – Offers from Wilmar • Sale Consideration to PPB • Update • New Wilmar Group structure • Rationale & Benefits • Effects of Proposed Disposals on PPB

  4. Group Financial Highlights

  5. Financial Results

  6. Segmental Information Others 5.6% Sugar & cane 7% Grains trading, flour & feed milling 8% Property 0.4% Revenue Total RM11.5 billion Film exhibition 1% Edible oils refining & trading 72% Waste management & utilities 1% Oil palm plantations 5%

  7. Segmental Information ` Others 3% Sugar & cane 14% Grains trading, flour & feed milling 18% Property 2% Operating profits Total RM600 million Film exhibition 3% Edible oils refining & trading 25% Waste management & utilities 1% Oil palm plantations 34%

  8. Major Contributors to Group Operating Profit RM million RM38m (23%) Reason for higher/ lower profits Sugar & cane • Higher raw sugar prices. Grain trading, flour & feed milling • Higher sales. Edible oils refining & trading • Better refining margins. Oil palm plantations • Higher CPO prices. • Higher crop production. • Average CPO price realized :- Year 2006 RM 1,465 per tonne Year 2005 RM1,349 per tonne RM23m (18%) RM53m (93%) RM6 m (7%)

  9. Major Contributors to Group Operating Profit RM48m (74%) RM million Reason for higher/ lower profits Waste management & utilities • Divestment of loss making subsidiary, Marathon Equipment Asia Pte Ltd. Film exhibition • Stronger performance of blockbuster films. • Contribution from new cineplex. Property • Write-back of development cost in 2005. Others • Livestock (down RM23 million) • Chemicals trading & manufacturing (down RM12million) • Packaging (up RM5.4 million) RM5m (26%) RM1m (6%) RM9m (150%)

  10. Cash and Borrowings RM Million

  11. Profit Before Tax for Years 2002 - 2006

  12. 5-year Profit Before Tax RM Million Year

  13. Dividend Record for Years 2002 - 2006

  14. Dividend Record * Final dividend for year 2006 is payable on Thursday, 7 June 2007.

  15. Share Performance for Year 2006

  16. Share Performance 23-2-07 29-12-06 1283 30-6-06 1096 3-1-06 RM6.40 915 892.85 RM5.45 RM4.08 RM4.00 Year 2006 Closing Price (high) - RM5.45 Closing Price (low) – RM3.86 Market Capitalization as @ 31.12.06 – RM6,460,974,356.00 24 31 Y2006 Y2007

  17. Capital Commitment as at 31 December 2006

  18. Capital Commitment as at 31 Dec 2006 Capital commitments RM 910 million RM 568m RM 144m RM 15m RM166m RM 3.5m RM 13.5m PPBOP PPB Leisure PPB Hartabina FFM MSM Others

  19. Capital Commitment as at 31 Dec 2006 PPBOP FFM MSM

  20. Capital Commitment as at 31 Dec 2006 PPB Leisure PPB Hartabina

  21. Expansion / Future Plans

  22. Expansion / Future Plans Sugar • Continue to enhance its packing, logistic and other operational efficiencies. • Expand its export activities. Flour and animal feed milling • Continue to expand its business locally and regionally as well as expanding downstream activities. Edible oils refining • To explore new opportunities in oleochemical and biodiesel industries. • To identify other downstream products.

  23. Expansion / Future Plans Oil palm plantations • Continue the development of its land bank in Indonesia. • Further improve on its mill extraction rates. Waste management & utilities • Continue to engage in the water and waste projects set out in the 9th Malaysian Plan. • Continue to explore new markets both locally and overseas. • Leverage on its strategic partnerships in China for growth.

  24. Expansion / Future Plans Film exhibition • To expand cinema business in Klang Valley and East Malaysia. • Continue to explore new multiplex sites. Property • Development projects at : • Taman Aman – comprising 84 units of bungalow, semi-detached and shop houses. • New World Park, Penang – Phase II comprising of F&B outlets • Bedong – Housing Project at Taman Sinar Mentari. • Whiteaways Arcade at Beach Street & Church Street, Penang – Restoration of prewar buildings for retail and commercial activities.

  25. Proposed Disposals of PPB Oil Palms Berhad, PGEO Group Sdn Bhd, and Kuok Oils & Grains Pte Ltd

  26. Introduction – Offers from Wilmar • On 14 December 2006, PPB announced that FFM had received a letter of offer from Wilmar stating their intention to acquire the following from FFM: - • 65.8% equity interest in PGEO for a purchase consideration to be satisfied by the issuance of 287,122,772 Wilmar shares • 28% equity interest in KOG for a purchase consideration to be satisfied by the issuance of 305,635,556 Wilmar shares • In addition, PPBOP, had on even date, received a Notice of Conditional Voluntary Offer from CIMB Investment Bank Berhad , on behalf of Wilmar, to acquire all the ordinary shares of RM1.00 each in PPBOP to be satisfied by the issuance of 2.3 Wilmar Shares for each PPBOP Share.

  27. Sale Consideration to PPB * Based on the last traded price of Wilmar Shares on 27 February 2007 of SGD2.61 ^ Assuming exchange rate of SGD1.00 = RM2.29 # Representing RM13.75 per PPBOP Share

  28. Updates • The SC (FIC) had on 17 January 2007, advised that it has no objection to Wilmar’s proposed VGO of PPBOP. Equity conditions may be imposed on PPBOP following verification of acceptance. • The PPB Board appointed AmInvestment Bank Berhad as its Adviser to the Proposed Disposals. • The PPB Board had considered the terms and conditions of the Proposed Disposals, and after considering the advise from AmInvestment Bank, had on 24 January 2007 approved the Proposed Disposals and agreed to present it to the Shareholders of PPB at an EGM for their consideration and approval. • An EGM is tentatively scheduled to be held in early April 2007 for the above purpose. • Approvals of other relevant authorities for the Proposed Disposals are still awaited.

  29. Enlarged Wilmar Group Structure 19.6% PPB KOG Vendors WHPL ADM Minorities PPB will hold approximately 18.2% of the enlarged share capital of the Wilmar Group upon completion of the Proposed Disposals (assuming full acceptances of the VGO by all shareholders of PPBOP). 18.2% 48.5% 6.7% 13.8% 12.8% WILMAR 65.8% 100% 100% 100% KOG PGEO PPBOP IPT Assets Existing Business 34.2%

  30. Rationale & Benefits of the Proposed Disposals • To unlock the value of PPB’s investments in PPBOP, KOG and PGEO, and venture into an investment with higher expected returns and greater potential for capital appreciation: - • PPB is expecting to realize a significant amount of gain in its balance sheets from the Proposed Disposals. As at 27 February 2007RM Sale consideration 6,946,638,605.00 Market capitalization of PPB (RM6.00 x 1,185,499,882 shares) 7,112,999,292.00

  31. Rationale & Benefits of the Proposed Disposals • Entry into one of Asia’s largest integrated agribusiness group carrying the entire value chain of the palm oil business: - • Leading merchandiser and processor of palm and lauric oils in the world • Leading palm and lauric oils refiner in the world with plantations in Malaysia and Indonesia • Leading merchandiser of palm and lauric oils in most major markets in the world (China, India, Africa, Eastern Europe and Middle East) • One of significant palm biodiesel manufacturers (expected to commence in 2007) • Significant increase in production capacities as follows: -

  32. Rationale & Benefits of the Proposed Disposals Significant increase in production capacities (Indonesia and Malaysia) (Source: Wilmar’s press conference presentation on 14.12.06)

  33. Rationale & Benefits of the Proposed Disposals B. Sizeable plantation owner in Indonesia and Malaysia • 2nd largest land bank in Malaysia after the proposed Synergy Drive • One of the largest oil palm plantation companies in the world in terms of land bank (Source: Wilmar’s press conference presentation on 14.12.06)

  34. Rationale & Benefits of the Proposed Disposals C. Dominant presence as merchandiser and processor of edible oils and oilseeds in China • KOG • Leading merchandiser of consumer pack edible oils • One of the largest manufacturers of oleo-chemicals • Manufacturing facilities in flour and feed milling, specialty fats, oil seeds crushing and refining • WHPL & ADM • Largest oilseed crusher and edible oils refiner • Leading merchandiser of consumer pack edible oils • One of the largest manufacturers of oleo-chemicals • Manufacturing facilities in flour and rice milling and specialty fats • Fully integrated group from processing of oilseeds to merchandising of finished agricultural products • Largest oilseed crusher, edible oils refiner, specialty fats and oleo-chemical manufacturer and merchandiser of consumer pack edible oils (Source: Wilmar’s press conference presentation on 14.12.06)

  35. Rationale & Benefits of the Proposed Disposals • Growth opportunities and presence in processing and merchandising of agriculture products in China Significant increase in the production capacities in China in respect of edible oils, oilseeds and grains as follows: - (Source: Wilmar’s press conference presentation on 14.12.06)

  36. Rationale & Benefits of the Proposed Disposals • Opportunity to combine palm oil assets and benefit from the synergies arising from the merger • Unified brand identity • Unified procurement and logistics activities • Lower procurement costs for main cost items, e.g.. Fertilizers • Better logistics management/transport efficiencies • Human resource optimization • Sharing of distribution network • Expansion of customer base • Common sales and marketing force • Extensive consumer pack edible oils distribution network • Additional international outlet for its products • May utilize milling and refining capacity of Wilmar for its FFB production

  37. Effects of Proposed Disposals on PPB Will be disclosed in the circular to shareholders, to be issued at a later date.

  38. THE END

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