3 rd Quarter 2013 Analyst/Investor Briefing 18 Nov 2013 5.00pm TH PLANTATIONS BERHAD (Company No: 12696-M) Presented by: Dato ’ Zainal Azwar Zainal Aminuddin Chief Executive Officer 1 TH PLANTATIONS BERHAD (Company No: 12696-M)
Performance highlights PK Production FFB Production CPO Production +93% YoY +67% YoY +118% YoY +45% QoQ +28% QoQ +47% QoQ CPO Realised Prices PK Realised Prices 3Q13 highlights -22% YoY -24% YoY +3% QoQ +2% QoQ Revenue EBITDA Profit Before Tax +58% YoY +71% YoY +41% YoY +36% QoQ +12% QoQ +274% QoQ 2 TH PLANTATIONS BERHAD (Company No: 12696-M)
Area Statement Infra & Others 4 - 9 >25 21% (Young years Mature Oil Mature) (Old Palm Mature) 42% 34% In-course of 15% Planting 10% 18% Immature Oil 25% Palm Immature Teak 27% 5% 20 - 25 10 - 19 (Old (Prime Immature Mature) Mature) Rubber Total land bank: Average age: 3% 97,712 Ha 14 years Oil Palm Peninsular Sabah Sarawak Total Rubber Sabah Mature 11,531 7,792 13,549 32,871 Mature - Immature 7,003 729 18,883 26,615 Immature 2,982 Total planted 18,533 8,521 32,432 59,486 Total planted 2,982 In course of planting 785 5,517 6,302 In course of planting 3,200 3 TH PLANTATIONS BERHAD (Company No: 12696-M)
FFB contribution by region 3Q2012 3Q2013 Sabah Sabah Peninsular 20% 31% Peninsular 33% 50% 47% 19% Sarawak Sarawak Higher contribution from the Sarawak region following acquisitions made in 2012 4 TH PLANTATIONS BERHAD (Company No: 12696-M)
A closer look at revenue indicators Mature Area (ha) FFB Production (MT) FFB Processed (MT) +39% +115% +67% 241,291 32,871 32,871 227,407 177,766 169,676 23,645 112,181 136,154 3Q12 3Q13 2Q13 3Q12 3Q13 2Q13 3Q12 3Q13 2Q13 CPO Production (MT) CPO Sales (MT) PK Production (MT) +118% +167% +93% 49,130 48,568 11,493 33,331 33,841 7,915 22,485 18,213 5,965 3Q12 3Q13 2Q13 3Q12 3Q13 2Q13 2Q12 2Q13 2Q13 5 TH PLANTATIONS BERHAD (Company No: 12696-M)
A closer look at revenue indicators FFB Yield (MT/ha) OER (%) KER (%) 0.32 +20% 0.56 ppt ppt 5.32 6.92 20.36 5.76 5.41 20.04 4.76 4.66 19.65 3Q12 3Q13 2Q13 3Q12 3Q13 2Q13 3Q12 3Q13 2Q13 6 TH PLANTATIONS BERHAD (Company No: 12696-M)
Higher growth in FFB production seen Post major acquisitions 250,000 8.0 7.22 7.0 +28% 6.92 200,000 5.76 6.0 5.41 FFB Production (MT) FFB Yield/hectare (MT/Ha) 4.89 4.66 5.0 4.51 150,000 +29% +12% 4.0 +26% +3% 100,000 3.0 2.0 50,000 1.0 - 0.0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 7 TH PLANTATIONS BERHAD (Company No: 12696-M)
A closer look at costs Cost of Sales 3Q13 3Q12 Variance (%) Remarks Estate Production Cost 41,562 39,415 +5% In line with higher production and better efficiencies – lower unit production cost Overhead 6,726 5,272 +28% FFB Purchases 12,584 3,416 +268% Mill Manufacturing Cost 12,480 6,488 +92% In line with higher production and new mills – lower unit processing cost Depreciation – Estates 1,851 1,195 +55% In line with major acquisitions Depreciation – Mill 4,160 2,010 +107% In line with major acquisitions Amortisation 13,723 6,435 +113% In line with major acquisitions Other Costs 3Q13 3Q12 Variance (%) Remarks Admin Expenses 3,343 3,334 +0% Minimal variance Other operating expenses 1,019 758 +34% Depreciation 306 282 +9% Zakat - 158 n.m Current liabilities > current assets Finance Cost 6,997 2,457 +185% Higher debt due to major acquisitions 8 TH PLANTATIONS BERHAD (Company No: 12696-M)
Higher efficiency has led to lower production cost/MT Estate Production Cost (RM/MT) CPO Production Cost (RM/MT) *excl depreciation -37% Own FFB 289 183 -32% 3Q12 3Q13 1,408 944 Mill Manufacturing Cost (RM/MT) -11% 58 52 3Q12 3Q13 3Q12 3Q13 9 TH PLANTATIONS BERHAD (Company No: 12696-M)
CPO prices improved slightly, still lower than last year 3Q13 3Q12 YTD13 YTD12 -29% -22% CPO RM2,209 RM2,827 CPO RM2,143 RM3,025 -35% -24% PK RM1,222 RM1,598 PK RM1,181 RM1,831 FFB RM436 RM568 FFB RM447 RM673 -34% -23% 10 TH PLANTATIONS BERHAD (Company No: 12696-M)
Overview of Profit & Loss (3Q) (RM ‘000) 3Q13 3Q12 Revenue up by 58% Revenue 130,146 82,342 Sales of CPO 107,310 51,488 Sales of PK 12,992 8,027 Sales of FFB 5,691 15,200 Management fees 4,152 7,554 Gross profit up by 50% Dividends 74 Cost of Sales (91,863) (56,877) Gross Profit 38,283 25,465 Other Expenses (11,665) (6,989) Other expenses higher by 67% Admin expenses (3,343) (3,334) due to higher finance costs Other operating expenses (1,325) (1,040) Zakat 0 (158) Finance costs (6,997) (2,457) PBT up by 41% Other Income 1,146 1,221 Profit Before Tax 27,763 19,698 PAT down by 36% (3Q12 PAT Tax (8,634) 10,050 boosted by deferred taxes) Profit After Tax 19,130 29,748 EBITDA up by 71% EBITDA 54,801 32,077 Gross profit excl amort up by 63% Gross Profit before amortisation 52,006 31,900 11 TH PLANTATIONS BERHAD (Company No: 12696-M)
EBITDA margins reasonably sustained 60,000 45% 42% 40% 39% 40% 36% 50,000 35% 32% 36% 30% 30% 40,000 30% EBITDA (RM) EBITDA margin (%) 23% 25% 30,000 20% 18% 15% 20,000 15% 12% 11% 10% 7% 10,000 5% - 0% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 12 TH PLANTATIONS BERHAD (Company No: 12696-M)
Overview of Profit & Loss (YTD) (RM ‘000) YTD13 YTD12 Revenue 315,404 276,740 Revenue up by 14% Sales of CPO 247,143 190,484 Sales of PK 31,965 32,515 Sales of FFB 24,827 35,160 Management fees 11,468 18,507 Gross profit down by 17% due to lower ASPs, exacerbated by higher Dividends 0 74 depreciation and amortisation Cost of Sales (243,118) (190,007) Gross Profit 72,286 86,733 Other Expenses (35,202) (21,443) Other expenses higher by 64% Admin expenses (12,908) (10,076) due to higher finance costs Other operating expenses (4,919) (4,225) Zakat 0 (921) Finance costs (17,375) (6,221) PBT down by 42%, exacerbated by Other Income 3,159 4,264 higher finance costs Profit Before Tax 40,242 69,555 Tax (4,396) (839) PAT down by 48% Profit After Tax 35,846 68,716 EBITDA up by 8% EBITDA 112,512 103,869 Gross profit excl amort up by 7% Gross Profit before amortisation 112,632 105,084 13 TH PLANTATIONS BERHAD (Company No: 12696-M)
Progress Update – New Mill Commissioned 14 TH PLANTATIONS BERHAD (Company No: 12696-M)
Raja Udang POM has commenced operations in July Capacity : 60 MT/hour Location : Pusa, Sarawak Surrounding estates : 1.Ladang Kenyalang 2.Ladang Raja Udang 3.Ladang Enggang 4.Ladang Merbok 5.Ladang Tanjung Lilin 6.Ladang Semarang 7.Ladang NCR Beladin 15 TH PLANTATIONS BERHAD (Company No: 12696-M)
Progress Update – Rubber Development Programme 16 TH PLANTATIONS BERHAD (Company No: 12696-M)
Rubber Development Programme • Why rubber? – Supply severely short (demand of 2m tonnes of latex per year vs supply of only 1m tonnes for downstream eg gloves) – Currently importing from other rubber-producing countries eg Thailand – 90% of local production currently from small holders – Vast potential for THP to tap 17 TH PLANTATIONS BERHAD (Company No: 12696-M)
Rubber Development Programme 2006 Planted: 818 hectares 2,982 hectares 2013 Planted: 2,164 hectares 2014 In course of planting: 3,200 hectares 2015 Planned: 2,000 hectares 2016 Planned: 1,523 hectares 18 TH PLANTATIONS BERHAD (Company No: 12696-M)
Rubber Development Programme 19 TH PLANTATIONS BERHAD (Company No: 12696-M)
Outlook for 4Q13 Production We believe production has peaked in 3Q13 Production expected to be affected as we enter monsoon season We are working towards our targeted FFB production Efficiency Operations will continue to find avenues for higher efficiencies Costs are expected to remain low CPO Price CPO prices are expected to remain between RM2,500 to RM2,600 until end of the year 20 TH PLANTATIONS BERHAD (Company No: 12696-M)
TH PLANTATIONS BERHAD (Company No: 12696-M) Thank You Our vision is to be an integrated and sustainable plantation player with global recognition, promising premium quality products For further information/queries, please email aizzura@thplantations.com 21 TH PLANTATIONS BERHAD (Company No: 12696-M)
A closer look at revenue Mature Area (ha) FFB Production (MT) FFB Processed (MT) +39% +62% +67% 564,210 556,310 32,871 348,485 332,636 23,645 9M12 9M13 9M12 9M13 9M12 9M13 CPO Production (MT) CPO Sales (MT) PK Production (MT) +67% +83% +43% 26,791 115,349 112,019 18,766 67,077 62,970 9M12 9M13 9M12 9M13 9M12 9M13 22 TH PLANTATIONS BERHAD (Company No: 12696-M)
A closer look at revenue FFB Yield (MT/ha) OER (%) KER (%) +16% 0.82 0.03 ppt ppt 5.64 20.17 17.16 14.74 20.14 4.82 9M12 9M13 9M12 9M13 9M12 9M13 23 TH PLANTATIONS BERHAD (Company No: 12696-M)
FFB contribution by region YTD 2012 YTD 2013 Sabah Sabah Peninsular 25% Peninsular 34% 33% 50% 42% 16% Sarawak Sarawak Higher contribution from the Sarawak region following acquisitions made in 2012 24 TH PLANTATIONS BERHAD (Company No: 12696-M)
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