3 rd Quarter 2013 Analyst/Investor Briefing 18 Nov 2013 5.00pm TH - - PowerPoint PPT Presentation

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TH PLANTATIONS BERHAD (Company No: 12696-M)

3rd 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

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TH PLANTATIONS BERHAD (Company No: 12696-M)

Performance highlights

• 22% YoY

+3% QoQ CPO Realised Prices +118% YoY +47% QoQ CPO Production +67% YoY +28% QoQ FFB Production +93% YoY +45% QoQ PK Production

• 24% YoY

+2% QoQ PK Realised Prices +71% YoY +12% QoQ EBITDA +58% YoY +36% QoQ Revenue +41% YoY +274% QoQ Profit Before Tax

3Q13 highlights

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TH PLANTATIONS BERHAD (Company No: 12696-M)

Area Statement

Oil Palm Peninsular Sabah Sarawak Total Mature 11,531 7,792 13,549 32,871 Immature 7,003 729 18,883 26,615 Total planted 18,533 8,521 32,432 59,486 In course of planting 785 5,517 6,302 Rubber Sabah Mature

• Immature

2,982 Total planted 2,982 In course of planting 3,200 Mature Oil Palm 34% Immature Oil Palm 27% Immature Rubber 3% Immature Teak 5% In-course of Planting 10% Infra & Others 21%

Total land bank: 97,712 Ha

>25 years (Old Mature) 20 - 25 (Old Mature) 10 - 19 (Prime Mature) 4 - 9 (Young Mature)

42% 25% 18% 15%

Average age: 14 years

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TH PLANTATIONS BERHAD (Company No: 12696-M)

FFB contribution by region

33% 47% 20%

3Q2013

50% 19% 31%

3Q2012

Peninsular Sabah Sarawak Peninsular Sabah Sarawak

Higher contribution from the Sarawak region following acquisitions made in 2012

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TH PLANTATIONS BERHAD (Company No: 12696-M)

A closer look at revenue indicators

Mature Area (ha) 23,645 32,871 32,871 3Q12 3Q13 2Q13

+39%

FFB Production (MT) 136,154 227,407 177,766 3Q12 3Q13 2Q13

+67%

CPO Production (MT) 22,485 49,130 33,331 3Q12 3Q13 2Q13

+118%

FFB Processed (MT) 112,181 241,291 169,676 3Q12 3Q13 2Q13

+115%

CPO Sales (MT) 18,213 48,568 33,841 3Q12 3Q13 2Q13

+167%

PK Production (MT) 5,965 11,493 7,915 2Q12 2Q13 2Q13

+93%

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TH PLANTATIONS BERHAD (Company No: 12696-M)

A closer look at revenue indicators

FFB Yield (MT/ha) 5.76 6.92 5.41 3Q12 3Q13 2Q13 +20% KER (%) 5.32 4.76 4.66 3Q12 3Q13 2Q13

0.56 ppt

OER (%) 20.04 20.36 19.65 3Q12 3Q13 2Q13 0.32 ppt

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TH PLANTATIONS BERHAD (Company No: 12696-M)

4.51 4.66 5.76 7.22 4.89 5.41 6.92 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

• 50,000

100,000 150,000 200,000 250,000 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Higher growth in FFB production seen

+3% +26% +29% +12% +28%

FFB Production (MT)

Post major acquisitions

FFB Yield/hectare (MT/Ha)

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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

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TH PLANTATIONS BERHAD (Company No: 12696-M)

1,408 944 3Q12 3Q13 CPO Production Cost (RM/MT)

• 32%

Higher efficiency has led to lower production cost/MT

Own FFB

289 183 3Q12 3Q13 Estate Production Cost (RM/MT)

• 37%

58 52 3Q12 3Q13 Mill Manufacturing Cost (RM/MT)

• 11%

*excl depreciation

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TH PLANTATIONS BERHAD (Company No: 12696-M)

CPO prices improved slightly, still lower than last year

3Q13 3Q12 CPO RM2,209 RM2,827 PK RM1,222 RM1,598 FFB RM436 RM568

• 22%
• 24%
• 23%

YTD13 YTD12 CPO RM2,143 RM3,025 PK RM1,181 RM1,831 FFB RM447 RM673

• 29%
• 35%
• 34%

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TH PLANTATIONS BERHAD (Company No: 12696-M)

Overview of Profit & Loss (3Q)

(RM ‘000) 3Q13 3Q12 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 Dividends 74 Cost of Sales (91,863) (56,877) Gross Profit 38,283 25,465 Other Expenses (11,665) (6,989) Admin expenses (3,343) (3,334) Other operating expenses (1,325) (1,040) Zakat (158) Finance costs (6,997) (2,457) Other Income 1,146 1,221 Profit Before Tax 27,763 19,698 Tax (8,634) 10,050 Profit After Tax 19,130 29,748 EBITDA 54,801 32,077 Gross Profit before amortisation 52,006 31,900

Revenue up by 58%

Other expenses higher by 67% due to higher finance costs EBITDA up by 71% Gross profit excl amort up by 63%

Gross profit up by 50% PBT up by 41%

PAT down by 36% (3Q12 PAT boosted by deferred taxes)

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TH PLANTATIONS BERHAD (Company No: 12696-M)

EBITDA margins reasonably sustained

40% 36% 39% 30% 30% 32% 42% 18% 23% 36% 12% 7% 11% 15% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

• 10,000

20,000 30,000 40,000 50,000 60,000 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 EBITDA (RM) EBITDA margin (%)

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TH PLANTATIONS BERHAD (Company No: 12696-M)

Overview of Profit & Loss (YTD)

(RM ‘000) YTD13 YTD12 Revenue 315,404 276,740 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 Dividends 74 Cost of Sales (243,118) (190,007) Gross Profit 72,286 86,733 Other Expenses (35,202) (21,443) Admin expenses (12,908) (10,076) Other operating expenses (4,919) (4,225) Zakat (921) Finance costs (17,375) (6,221) Other Income 3,159 4,264 Profit Before Tax 40,242 69,555 Tax (4,396) (839) Profit After Tax 35,846 68,716 EBITDA 112,512 103,869 Gross Profit before amortisation 112,632 105,084

Revenue up by 14% Other expenses higher by 64% due to higher finance costs EBITDA up by 8% Gross profit excl amort up by 7% Gross profit down by 17% due to lower ASPs, exacerbated by higher depreciation and amortisation PBT down by 42%, exacerbated by higher finance costs PAT down by 48%

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TH PLANTATIONS BERHAD (Company No: 12696-M)

Progress Update – New Mill Commissioned

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TH PLANTATIONS BERHAD (Company No: 12696-M)

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

Raja Udang POM has commenced operations in July

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TH PLANTATIONS BERHAD (Company No: 12696-M)

Progress Update – Rubber Development Programme

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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

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TH PLANTATIONS BERHAD (Company No: 12696-M)

Rubber Development Programme

2013 2014 2015 2016

Planted: 2,164 hectares Planned: 2,000 hectares Planned: 1,523 hectares In course of planting: 3,200 hectares

2006

Planted: 818 hectares 2,982 hectares

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TH PLANTATIONS BERHAD (Company No: 12696-M)

Rubber Development Programme

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TH PLANTATIONS BERHAD (Company No: 12696-M)

Outlook for 4Q13  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  Operations will continue to find avenues for higher efficiencies  Costs are expected to remain low  CPO prices are expected to remain between RM2,500 to RM2,600 until end of the year

Production Efficiency CPO Price

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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

TH PLANTATIONS BERHAD (Company No: 12696-M)

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TH PLANTATIONS BERHAD (Company No: 12696-M)

A closer look at revenue

Mature Area (ha) 23,645 32,871 9M12 9M13

+39%

FFB Production (MT) 348,485 564,210 9M12 9M13

+62%

CPO Production (MT) 67,077 112,019 9M12 9M13

+67%

FFB Processed (MT) 332,636 556,310 9M12 9M13

+67%

CPO Sales (MT) 62,970 115,349 9M12 9M13

+83%

PK Production (MT) 18,766 26,791 9M12 9M13

+43%

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TH PLANTATIONS BERHAD (Company No: 12696-M)

A closer look at revenue

FFB Yield (MT/ha) 14.74 17.16 9M12 9M13 +16% KER (%) 5.64 4.82 9M12 9M13

0.82 ppt

OER (%) 20.17 20.14 9M12 9M13

0.03 ppt

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TH PLANTATIONS BERHAD (Company No: 12696-M)

FFB contribution by region

33% 42% 25%

YTD 2013

50% 16% 34%

YTD 2012

Peninsular Sabah Sarawak Peninsular Sabah Sarawak

Higher contribution from the Sarawak region following acquisitions made in 2012

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TH PLANTATIONS BERHAD (Company No: 12696-M)

1,454 1,092 YTD12 YTD13 CPO Production Cost (RM/MT)

• 25%

Higher efficiency has led to lower production cost/MT

Own FFB

286 188 YTD12 YTD13 Estate Production Cost (RM/MT)

• 33%

60 55 YTD12 YTD13 Mill Manufacturing Cost (RM/MT)

• 7%

*excl depreciation *excl depreciation *excl depreciation