41st Annual General Meeting 24 th August 2016 DEWAN BERJAYA, BUKIT - - PowerPoint PPT Presentation
41st Annual General Meeting 24 th August 2016 DEWAN BERJAYA, BUKIT KIARA EQUESTRIAN & COUNTRY RESORT FIMACORP AT A GLANCE 01 2016 Performance Overview 02 AGE NDA 2016 Financial Snapshot 03 2016 Operation Overview 04 Moving Forward
DEWAN BERJAYA, BUKIT KIARA EQUESTRIAN & COUNTRY RESORT
Fim ima Corpor
ation
erha had
01
2016 Performance Overview
02
FIMACORP AT A GLANCE
05
Moving Forward 2016 Financial Snapshot
03
2016 Operation Overview
04
Fim ima Corpor
ation
erha had
FI FIMACORP AT A AT A GLAN ANCE
Production and trading of security and confidential documents Oil production and processing Investment holding and property investment
Core Businesses Other Businesses
OTHERS RS MANUFACT CTURI URING NG PL PLAN ANTATION
Female Male 71% 29%
T OT AL WORKF ORCE
1,786
Fim ima Corpor
ation
erha had
2015/2016 PER ERFO FORMAN ANCE O E OVER ERVIEW EW
SHAREH EHOLDER ERS’ S’ EQ EQUITY 2016: 16: RM55 554. 4.2 2 mil 2015: 15: RM53 530. 0.5 5 mil CASH ASH & & CASH ASH EQ EQUIVA VALENTS 2016: 16: RM17 177. 7.6 6 mil 2015: 15: RM17 172. 2.6 6 mil TOTA TOTAL ASSET ASSETS 2016: 16: RM68 684. 4.6 6 mil 2015: 15: RM71 712. 2.8 8 mil PROFI OFIT T AF AFTER ER TAX AX 2016: 16: RM54 54.9 9 mil 2015: 15: RM60 60.3 3 mil Earni nings ngs per shar hare 201 2016: 21. 21.24 sen en 201 2015: 36. 36.15 sen en Net Asset et per er shar are 2016: 16: RM2. 2.30 30 2015: 15: RM2. 2.20 20 Dividen dend d 201 2016: 25. 25.0% or
12.5 sen en pe per sha hare 201 2015: 25. 25.0% or
12.5 sen en pe per sha hare
Fim ima Corpor
ation
erha had
GROU OUP F FINANCIA NCIAL SNAPSHO HOT
RM’million
FY FY 2015 2015/2016 16 FY 2014 2014/2015 15
Rev evenue enue
375. 375.2 378. 378.0
PBT PBT
77. 77.3 87. 87.8
PAT PAT
54. 54.9 60. 60.3
Prof
attribu butab able t e to
quity H Hol
ders of
he Com
pany
51. 51.3 55. 55.8
VARI VARIANCE NCE %
(0. (0.8) (12. (12.0) (9. (9.0) (8. (8.1)
Fim ima Corpor
ation
erha had
GROU OUP F FINANCIA NCIAL SNAPSHO HOT
REVE EVENUE BY BU BY BUSI SINESS SEG SEGMENT
(RM’m ’mil illio ion)
PR PROFIT BEF BEFORE T TAX AX BY BY BU BUSI SINESS SEG SEGMENT
(RM’m ’mil illio ion)
268.3 266.8 102.6 107.1 4.3 4.1 2015/2016 2014/2015
Manufacturing Plantation Others
54.0 50.5 21.4 34.4 1.9 2.9 2015/2016 2014/2015
Manufacturing Plantation Others
Tot
375.2 Tot
378.0 To Tota tal: 7 : 77.3 .3 To Tota tal: 8 : 87.8 .8
Fim ima Corpor
ation
erha had
Ca utious c onsume r spe nding & hig he r input c osts due to tig hte r mone ta ry polic ie s Vola tile c ommodity pric e s a ffe c ting g loba l de ma nd & produc ts We a ke ne d Ma la ysia n ring g it a g a inst ma jor c urre nc ie s Adve rse we a the r / Clima te c ha ng e E l Nino, E l Nina Slowdown in ma jor e c onomie s suc h a s China a nd E U
CHAL L E NGE S
Mac r
c hange signific antly in c ur r e nt financ ial ye ar in light of pr e vailing c halle nge s
Fim ima Corpor
ation
erha had
OPER ERATI TIONAL AL O OVER ERVIEW EW – MANUF UFACT CTURIN URING
268 268.3 266 266.8
20 2015/ 15/2016 016 20 2014/ 14/2015 015
Rev evenu enue ( e (RM’mil illio lion) 54.4 50.5
20 2015/ 15/201 2016 20 2014/ 14/201 2015
PBT ( (RM’mil illi lion)
Impr prov
ed sale les volu lume me. PBT increas ased ed mai ainly due due to
r depr prec eciat ation
cos
+0 +0.6 % +7. 7.7% 7%
152 152.3 87. 87.0 7. 7.0 1. 1.6 20. 20.4 149 149.1 88. 88.0 10. 10.0 1. 1.5 18. 18.2 Travelling Doc
Licenses Con
dential Doc
Ren ental Income Other ers
201 2015/201 5/2016 201 2014/201 4/2015
Reven enue ue Break eakdo down n (RM’million
Fim ima Corpor
ation
erha had
Turn Customer into Key Accounts Develop New Products & Solutions Focus On Core Activities Strengthen Strategic Alliance Enhance Product & Services Pipe-line
To pursue its long term strategy to enhance its products and services
Priorities for FY16/17
MANUF UFACTUR URING NGOPER ERATI TIONAL AL O OVER ERVIEW EW – MANUF UFACT CTURIN URING
Fim ima Corpor
ation
erha had
102.6 102.6 107.1 107.1 201 2015/201 5/2016 201 2014/201 4/2015 Revenue ( nue (RM’million)
21.4 21.4 34.00 34.00
10 20 30 40
201 2015/201 5/2016 201 2014/201 4/2015 PBT ( (RM’mil illi lion)
2%
37.1% 1%
259.4 259.4 240.2 240.2 197.5 197.5 226.5 226.5 216.5 216.5 201 2016 201 2015 201 2014 201 2013 201 2012
Cost t of f FFB FFB (RM/Mt)
27.2 27.2 27.9 27.9 26.2 26.2 26.9 26.9 30.4 30.4 201 2016 201 2015 201 2014 201 2013 201 2012
Pro roce cessing C Cost st o
(RM/ M/Mt)
OPER ERATI TIONAL AL O OVER ERVIEW EW – PLAN ANTATI TATION
PL ANT AT ION Fim ima Corpor
ation
erha had 4% 39% 57%
2015/ 2015/2016 16 Age ge Prof
alms 4- 4-7 Y 7 Year ears 8- 8-12 Y 12 Yea ears >12 Y 12 Year ars 23.2 23.2 23.1 23.1 23.4 23.4 24.4 24.4 21.9 21.9 201 2016 201 2015 201 2014 201 2013 201 2012 Yiel eld P Per er Matu ature H Hec ecta tare ( e (YPH) 149,060 149,701 150,703 154,995 139,144 201 2016 201 2015 201 2014 201 2013 201 2012
FFB FFB Ha Harve vest sted (Mt) t)
22.4 22.7 22.6 23.4 23.8 20 2016 16 20 2015 15 20 2014 14 20 2013 13 20 2012 12
Oil E il Extraction Rate (O (OER % %)
OPER ERATI TIONAL AL O OVER ERVIEW EW – PLAN ANTATI TATION
PL ANT AT ION Fim ima Corpor
ation
erha had
OPER ERATI TIONAL AL O OVER ERVIEW EW – PLAN ANTATI TATION
Gabungan Warisan Sdn Bhd Kuala ala Kra rai, K Kelan elantan
adang Fi Fima Dabong
249.82 h ha. a. Taka Worldwide Trading Sdn Bhd Gua Gua Musan sang, K Kelan elantan
adang Fi Fima Aring ng
202.30 h ha. a. Etika Gangsa Sdn Bhd Gua Gua Musan sang, K Kelan elantan
adang Fi Fima Aring ng
202.30 h ha. a. R.N.E. Plantation Sdn. Bhd Sg.
iput, Pe Perak
00.00 h 00 ha. Cendana Laksana Sdn Bhd Kem emam aman, T Terengganu
adang Fi Fima Cen endana
785.39 h ha
PT Nunukan Jaya Lestari
Kalim alimantan Timur, , Indones esia ia
974.13 h 13 ha
PL ANT AT ION Fim ima Corpor
ation
erha had
Estat ate e Updat date: e: Cendana ndana Laksana ana Sd Sdn Bh Bhd (Kema mama man, Teren enggan gganu) u)
In Progress Completed Legend:
ACT IVIT IE S PHASE 1 380.38 ha PHASE 2 388.69 ha
Autho ritie s Appro va l la nd Cle a ring Ro a d T e rra c ing Ma in Dra in F ie ld Dra in Cha mb e ring Ho ling Ma uc una Bra c te a ta Pla nting Pa lm Pla nting
Phase 1 Field Drain
PL ANT AT IONOPER ERATI TIONAL AL O OVER ERVIEW EW – PLAN ANTATI TATION
Fim ima Corpor
ation
erha had
Estat ate e Updat date: e: Gabungan bungan War arisan an Sd Sdn Bh Bhd (Kual uala a Kr Krai, Kelant antan) an)
In Progress Completed Not Started Legend:
ACT I VI T I E S
250.00 ha
Autho ritie s Appro va l la nd Cle a ring Ro a d T e rra c ing Ma in Dra in F ie ld Dra in Cha mb e ring Ho ling Ma uc una Bra c te a ta Pla nting Pa lm Pla nting
PL ANT AT IONOPER ERATI TIONAL AL O OVER ERVIEW EW – PLAN ANTATI TATION
Fim ima Corpor
ation
erha had
Estat ate e Updat date: e: Taka a Wor
dwide de Tradi ading ng Sd Sdn Bh Bhd & & Et Etika Gangs ngsa Sd Sdn Bh Bhd (Gua ua Mus usang ang, Kelant antan) an)
In Progress Completed Not Started Legend: ACT IVIT IE S ARING 1 202.34 ha ARING 2 202.34 ha
Autho ritie s Appro va l L a nd Cle a ring Ro a d T e rra c ing Ma in Dra in F ie ld Dra in Cha mb e ring Ho ling Ma uc una Bra c te a ta Pla nting Pa lm Pla nting
OPER ERATI TIONAL AL O OVER ERVIEW EW – PLAN ANTATI TATION
PL ANT AT ION Fim ima Corpor
ation
erha had
Estate Update: R.N.E Plantation Sdn Bhd (Sg. Siput, Perak)
In Progress Not Started Legend:
ACT IVIT IE S
2,000 HA
Autho ritie s Appro va l L a nd Cle a ring Ro a d T e rra c ing Ma in Dra in F ie ld Dra in Cha mb e ring Ho ling Ma uc una Bra c te a ta Pla nting Pa lm Pla nting
PL ANT AT IONOPER ERATI TIONAL AL O OVER ERVIEW EW – PLAN ANTATI TATION
Fim ima Corpor
ation
erha had
PRIORITIES
PL ANT AT IONOPER ERATI TIONAL AL O OVER ERVIEW EW – PLAN ANTATI TATION
F
de ve lopme nt of e xisting e sta te s Pursue la nd ba nk e xpa nsion Yie ld improve me nt & c ost ma na g e me nt pra c tic e s Continuous a g ric ulture pra c tic e (GAP) & e ffic ie nc y improve me nt
Fim ima Corpor
ation
erha had
DIVID IDEND ND
DE DELIVERI ERING S G SHA HAREHOL REHOLDE DERS RS’ VA VALUE UE
2015/20 5/2016 16
Propo
d singl ngle t tier er f fina nal di dividen end of
15.0% % or
7.5 5 sen en per per s shar hare of
0.50 0 sen en Singl ngle e tier er int nter erim di dividen end of
10. 10.0% 0% or
5.0 0 sen en per per s shar hare
RM0. 0.50 0 sen en pai paid on d on 31 31 Dec ecem ember er 2015 2015
Enti ntitlement nt date date 05 05 Sept eptembe ber 2016 2016 Pay ayment date t date 22 22 Sept eptembe ber 2016 2016 10.0% 10.0% 30.0% 15.0% 15.0% 15.0% 18.5% 5.0% 5.0%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 2016 2015 2014 2013
DIVIDEND P D PAYOUT
Interim Dividend (sen) Final Dividend (sen) Special Dividend (sen)
25.0% 25.0% 35.0% 38.5%
Fim ima Corpor
ation
erha had
MOV OVING F NG FOR ORWARD
Maintain Pr ude nt F inanc ial Pr
Str e ngthe n Cor e Busine sse s L e ve r age on Mar ke t Oppor tunitie s E stablish Str
s F
F utur e Gr
MAXIMIZE SHARE HOL DE RS’ RE T URNS ST RONG CASH F L OW ORGANIC GROWT H
AGE NDA
RE SPONSE T O MINORIT Y SHARE HOL DE R WAT CHDOG GROUP’S L E T T E R DAT E D 17 AUGUST 2016
Fim ima Corpor
ation
erha had
R E SPONSE T O MSWG’S QUE R IE S (Str ategy/ F inanc ials) Que ry No. 1(a ) Wha t a re the Boa rd’s dig ita l initia tive s tha t c ould me e t with the impa c t implic a tions of dig ita l te c hnolog ie s a nd inc orpora te the m into the org a niza tion? Wha t a re the Boa rd’s e xpe c ta tions
busine ss is be ing c onduc te d in the future ? T he Ma nufa c turing division ha d imple me nte d se ve ra l dig ita l initia tive s whic h inc lude syste m inte g ra tion a nd ide ntity pe rsona liza tion solutions, c omple te with provision a nd ma inte na nc e of c ompute r ha rdwa re , se rve r a nd softwa re .
Fim ima Corpor
ation
erha had
R E SPONSE T O MSWG’S QUE R IE S (Str ategy/ F inanc ials) Que ry No. 1(b) Ha s the Boa rd e sta blishe d ne w stra te g ic a llia nc e s to spur the de ve lopme nt of ne w produc ts a nd solutions to c omple me nt its e xisting produc ts? Apa rt from the stra te g ic a llia nc e s tha t we ha ve de ve lope d in the c ourse of imple me nting our c urre nt proje c ts, the re a re pre se ntly se ve ra l pote ntia l pa rtne rs
diffe re nt te c hnolog ie s a nd e xpe rtise to support our future unde rta king s.
Fim ima Corpor
ation
erha had
R E SPONSE T O MSWG’S QUE R IE S (Str ategy/ F inanc ials) Que ry No. 1(c ) Doe s the Boa rd ha ve a ny c onting e nc y pla ns for its Ma nufa c turing Division in the vie w of the e xpira tion of the c ontra c t to supply c e rta in tra ve l doc ume nts by Qua rte r 3 F Y 2017? T he busine ss impa c t from the e xpira tion of the c ontra c t to supply c e rta in tra ve l doc ume nts by Qua rte r 3 F Y 2017 sha ll be a te mpora ry se tba c k a nd will be re pla c e d by simila r or ne w produc ts throug h our stra te g ic a llia nc e s.
Fim ima Corpor
ation
erha had
R E SPONSE T O MSWG’S QUE R IE S (Str ategy/ F inanc ials)
Que r y No. 2(a ) T he shar e of r e sults fr
De vr ie nt Ma laysia Sdn Bhd ha d de c line d for the pa st 3 ye a r
e the r e a sons for the de c line in the sha r e of r e sults fr
T
he de c line in the shar e of r e sults fr
the past 3 ye ar s was mainly due to:
e of r e sults impr
pr
gins.
inting busine ss has de c line d as de mand r e duc e d, r e sulting in stiff c ompe tition and low mar gin orde r
his is the main r e ason Gie se c ke & De vr ie nt GmbH, Munic h had r e loc ate d
its plants to Malaysia to inc r e ase c ompe titive ne ss.
Fim ima Corpor
ation
erha had
R E SPONSE T O MSWG’S QUE R IE S (Str ategy/ F inanc ials) Que ry No. 2(b) Who is the sha re holde r of the ma jor portion of 80% e quity inte re st in this a ssoc ia te ? 80% e quity inte re st in this a ssoc ia te is he ld by Gie se c ke & De vrie nt GmbH, Munic h.
Fim ima Corpor
ation
erha had
R E SPONSE T O MSWG’S QUE R IE S (Str ategy/ F inanc ials)
Que r y No. 3(a) What ar e the Boar d’s plans for the ne w ac quir e d subsidiar y, R.N.E . Plantation Sdn Bhd (“RNE P”) ove r the longe r te r m in r e spe c t of the e state de ve lopme nt vis-à-vis L adang Ce ndana, Ke maman, T e r e ngganu, L adang Dabong, Kuala Kr ai and L adang Ar ing, Gua Musang, Ke lantan r e spe c tive ly? RNE P is pr e se ntly in the midst of submitting the applic ation for appr
e le vant author itie s for zoning and E nvir
Impac t Asse ssme nt. Planting pr
am for 1400 ha plantable land in RNE P is planne d to be c omple te d by mid-2018 while the palm planting for
e state s name ly L adang Ce ndana in Ke maman, T e r e ngganu, L adang Dabong in Kuala Kr ai and L adang Ar ing in Gua Musang, Ke lantan totaling 1424 ha will be c omple te d by De c e mbe r 2016.
Fim ima Corpor
ation
erha had
R E SPONSE T O MSWG’S QUE R IE S (Str ategy/ F inanc ials) Que ry No. 3(b) Wha t a re the c a pita l e xpe nditure s, if a ny for the e sta te de ve lopme nt of the four re spe c tive pla nta tion e sta te s? Ca pita l e xpe nditure for e sta te de ve lopme nt of the four e sta te s in Ma la ysia is e stima te d to be :
Estate
RM’ million
20.0
5.0
7.8
22.4 Total 55.2
Fim ima Corpor
ation
erha had
R E SPONSE T O MSWG’S QUE R IE S (Str ategy/ F inanc ials)
Que ry 3(c ) Would the Board be c onside ring othe r c omme rc ial c rops for improve d e arnings give n the longe r ge station pe riod of oil palm or rubbe r tre e s amid the de c line d de mand from China, the impac t of E l Nino/ L a Nina on palm oil supply, biodie se l mandate s of Malaysia and Indone sia re spe c tive ly and the US soybe an supply? T he Boar d may c onside r
c omme r c ial c r
e ar nings base for the Gr
nings pr
, c ur r e ntly the Gr
palm though it is subje c t to r isks inhe r e nt to the plantation industr y. T he Boar d r e mains c onfide nt that the palm oil busine ss as a whole will be positive , dr ive n by the sustainability of the de mand for palm oil r e late d pr
ms of yie ld and c ost e ffic ie nc y, c ompar e d to othe r e dible oils.
Fim ima Corpor
ation
erha had
R E SPONSE T O MSWG’S QUE R IE S (Cor por ate Gover nanc e) We note d tha t thre e of the Inde pe nde nt Non- E xe c utive Dire c tors ha d se rve d the Boa rd for more tha n 12 ye a rs a nd would like the Boa rd to a ddre ss the issue in the suc c e ssion pla nning proc e ss in line with the re c omme nda tion 3.3 of MCCG 2012.
Fim ima Corpor
ation
erha had
R E SPONSE T O MSWG’S QUE R IE S (Cor por ate Gover nanc e)
As part of the annual pe rfor manc e e valuation proc e ss of the Boar d and Committe e , the Nomination Committe e re vie ws the size and c omposition of the Board, c hange s re quire d, if any and the pe rfor manc e and c ontribution of e ac h Dire c tor. Suc c e ssion pla nning and future re quire me nts in re spe c t of the Board struc ture to c omple me nt the Group’s strate gic dire c tion are par t of this annual proc e ss. Although the Company c ur re ntly doe s not have a polic y on the te nue of its Inde pe nde nt Non-E xe c utive Dire c tors (INE Ds), the Board would like to assure MWSG that the c rite r ia for the re te ntion of INE Ds a re stric tly drive n by the ir c ontr ibution to the Company, pe rsonal qualitie s, inte grity and obje c tivity. In this re gar d, the Board having re vie we d the pe rformanc e of the thr e e (3) INE Ds, is satisfie d that the Dire c tors have ac te d in the be st inte re sts of the Company and the Group, fre e from any c onflic ts or undue influe nc e and that the Group should c ontinue to be ne fit from the ir e xpe rie nc e and knowle dge .