Corporate Presentation 4th Quarter 2016 (period ended 30 Jun 2016) - - PowerPoint PPT Presentation

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Corporate Presentation

4th Quarter 2016

(period ended 30 Jun 2016)

UpdatedAug2016

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Agenda Agenda

Financial Performance Operations Review Summary

Company Overview

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Company Overview Company Overview

• Principal activities

– extraction and trading of logs – manufacturing and export of plywood, veneer and sawn timber, block-board and film-overlay – development of oil palm estate (since 2002) – management & operation of CPO mill; and – reforestation

• Products
• Quality assurance

– JAS Certification: allows Jaya Tiasa to sell plywood to Japan at premium price – CE Certification: allows Jaya Tiasa to sell plywood to European Economic Area – CARB Certification: allows Jaya Tiasa to sell plywood to the US market

Company Overview

Round logs Plywood Sawn Timber Veneer Fresh Fruit Bunch

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Timber Concession Area Timber Concession Area

Company Overview

Forest Concession License No. T/3113 T/3114 T/3044 T/3352 T/3353 T/3370 T/3371 T/3372 Total Gross Area (Hectares) 65,487 78,838 50,648 518,238 713,211 Extraction Quota

(July 2015 – June 2016)

Per Month Total Per Annum Volume (m3) 78,000 936,000

Large timber concession area and quota in Malaysia

5 Company Overview

• Timber Concession

Timber Concession -

• location

location

Bakun Dam

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Timber Production Capacity Timber Production Capacity

Products Total Installed Production Capacity

Plywood Production (m3) Per Month Per Year 35,000 420,000 Veneer Production (m3) Per Month Per Year 27,000 324,000 Sawn Timber Production (m3) Per Month Per Year 9,000 112,800

JTP1 & N, Putai RHP, Tg Ensurai JTP2, Tg Ensurai JTTP, Tg Manis

The Group downstream processing activities are carried out by its 3 wholly

• wned subsidiary companies:-

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Oil Palm Operations Oil Palm Operations

• Sizeable oil palm estate with an estimated plantable area of

69,589 ha. Planted 69,589 ha to-date.

• Significant contribution from oil palm sector in the next few years

Company Overview

PLANTED TO-DATE Oil Palm Plantations Total Land Area Planted Area Matured Area 83,483 hectares (Estimated Plantable Area: 69,589 ha) 69,589 hectares 60,787 hectares

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Crude Palm Oil Crude Palm Oil

324,000 27,000 60 Daro Jaya CPO Mill 486,000 40,500 90 Wealth Houses CPO Mill 60 MT per hour CPO Mill MT Per Month Total MT Per Annum Lassa CPO Mill 27,000 324,000

• P

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PLANTED TO-DATE

28% 12,334* 44,317 71,828 Guanaco Maujaya LPF 0028 16% 9,986* 62,027 108,144 Bahau Linau LPF 0024 28% 9,621* 34,033 55,887 Merirai Balui LPF 0023 23% 31,941* 140,377 235,859 Total LPF Project Gross Area (Ha) Plantable Area (Ha) Planted to-date (Ha) % Planted Species planted End uses

Kelampayan Face veneer, blockboard P.falcataria Blockboard, veneer A.mangium Outdoor furniture, truck flooring, veneer Eucalyptus Sawn timber, veneer G.arborea Face veneer, sawn timber

Reforestation Reforestation (Planted Forest Operation)

(Planted Forest Operation)

Sustainable forest management, reforestation and renewable resources to ensures long-term growth

• Areaestablishedbyboth

EnrichmentTree PlantingandIndustrial TreePlantingMethods Theaveragesurvivalrate

• ftheplantedseedlings

isabove95%.

Company Overview

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Planted Forest Operations Planted Forest Operations

• Location

Location

Company Overview

Bakun Dam

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Company Overview Operations Review Summary

Agenda Agenda

Financial Performance

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5 5-

• Year Financial Highlights

Year Financial Highlights

Financial Performance *Financial Year changed to 30 June starting FY2012 ie 14 months

2.18 22,271 31,269 (1,046) 22,897 111,539 1,054,098 FY 2013 20.23 170,666 224,874 149,828 179,797 283,680 1,183,684 FY 2012* 18.20 152,706 206,042 136,111 152,704 234,963 870,912 FY 2011 86,411 73,532 EBIT 60,385 35,817 Operating Profit 5.49 55,619 79,949 172,970 1,033,342 FY 2014 RM’000 FY 2015 Revenue 1,032,209 EBITDA 171,916 Profit Before Tax 52,567 Profit After Tax 34,445 Earnings per Share (sen) 3.27

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4QFY2016 Financial Highlights 4QFY2016 Financial Highlights

(Apr 2016 (Apr 2016 – – Jun 2016) Jun 2016)

RM’000 4Q FY16 4Q FY15 QoQ % 12M FY16 12M FY15 YoY % Revenue 246,676 238,920 3% 1,024,050 1,032,209

• 1%

Gross Profit 60,504 58,954 3% 254,403 222,012 15% Profit before Tax 27,073 18,609 45% 87,341 52,567 66% Profit net of Tax 16,643 15,987 4% 61,958 34,445 80% Earnings per Share (sen) 1.65 1.57 5% 6.10 3.27 87%

Financial Performance

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Profit Performance by segment Profit Performance by segment

FY 2015

Revenue RM’000 Revenue % PBT RM’000 PBT % Profit Margin Timber products 734,416 71% 121,201 121% 17% Oil palm operations 297,231 29% (21,442)

• 21%
• 7%

Operating results 1,031,647 100% 99,759 100% 10%

Financial Performance

12MFY16

Revenue RM’000 Revenue % PBT RM’000 PBT % Profit Margin Timber products 626,810 61% 123,158 114% 20% Oil palm operations 396,763 39% (14,900)

• 14%
• 4%

Operating results 1,023,573 100% 108,258 100% 11%

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Cash Flow Cash Flow

Financial Performance

RM ’000 Current year-to-date 30 Jun 2016 Corresponding year-to-date 30 Jun 2015 Net cash generated from

• perating activities

151,913 102,172 Net cash used in investing activities (214,295) (164,715) Net cash generated from/(used in) financing activities 80,543 24,158 Effect of exchange rate changes 14 19 Cash & cash equivalents at beginning of financial period (103,310) (64,944) Cash & cash equivalents at end

• f financial period

(85,135) (103,310) (103,310) (64,944) 19 24,158 (164,715) 102,172 FY 2015

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Balance Sheet Balance Sheet

RM ’000 As at 30/6/16 As at preceding FY end 30/06/15 Non-Current Assets 2,936,412 2,793,527 Current Assets 308,101 293,785 Total Assets 3,244,513 3,087,312 Total Equity 1,828,101 1,775,110 Non-Current Liabilities 734,623 493,987 Current Liabilities 681,789 818,215 Total Equity & Liabilities 3,244,513 3,087,312 Net Asset per share (RM) 1.88 1.83

Financial Performance

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Agenda Agenda

Company Overview Financial Performance Summary

Operations Review

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Revenue Breakdown by Products Revenue Breakdown by Products

Operations Review 1,602 816 705 1,842 FY2015 1,552 1,668 Veneer 827 811 Sawn Timber RM/m3 4QFY16 4QFY15 Plywood 1,869 1,856 Logs 814 785

Source: Jaya Tiasa Holdings Berhad

Average Selling Price

1,400 2,166 399 FY2015 405 498 FFB 2,150 2,547 CPO 1,423 2,289 PK RM/MT 4QFY16 4QFY15

4QFY16 (Apr 16 – Jun 16)

11 FFB 19 CPO 9 Veneer 2 PK 4QFY15 Apr 15 - Jun 15 (%) Plywood 26 Logs 31 Sawn Timber 2

Veneer 10% CPO 34% PK 5% Logs 21% FFB 12% Plywood 17% Sawn Timber 1%

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Average Export Timber Price Trend Average Export Timber Price Trend

Financial Performance

100 200 300 400 500 600 700

4Q FY14 1Q FY15 2Q FY15 3Q FY15 4Q FY15 1Q FY16 2Q FY16 3Q FY16 4Q FY16

USD/m3

Logs Plywood

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Average Palm Oil Price Trend Average Palm Oil Price Trend

Financial Performance

500 1000 1500 2000 2500 3000 4Q FY14 1Q FY15 2Q FY15 3Q FY15 4Q FY15 1Q FY16 2Q FY16 3Q FY16 4Q FY16

RM/MT

FFB CPO PK

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Revenue Breakdown by Countries Revenue Breakdown by Countries

Operations Review UK / Europe USA 3 Asean Australia 4QFY15 (Apr 15 – Jun 15) % Japan 6 India 32 Middle East Taiwan 19 Korea 29 China / Hong Kong 11

4QFY16 (Apr 16 – Jun 16)

Taiwan 15% Hong Kong/China 10% Japan 10% Asean 4% Australia 1% Korea 27% Middle East 2% India 31%

Timber Operation Timber Operation

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Logs Sales Performance Logs Sales Performance

Operations Review

1QFY11 ( May 10 – Jul 10)

4 Korea 4QFY15 (Apr 15 – Jun 15) % Japan 6 India 68 Taiwan 15 China/Hong Kong 1 Asean 6

4QFY16 (Apr 16 – Jun 16)

India 67% Taiwan 11% Asean 8% Japan 11% Korea 3%

Timber Operation Timber Operation

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Plywood Sales Performance Plywood Sales Performance

Operations Review UK/Europe 1 Asean USA 4QFY15 (Apr 15 – Jun 15) % Middle East Japan 7 Korea 46 China/ Hong Kong 24 Taiwan 22

4QFY16 (Apr 16 – Jun 16)

Taiwan 16% Australia 1% Hong Kong/China 25% UK/Europe 1% Japan 13% Middle East 5% Korea 39%

Timber Operation Timber Operation

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Sawn Timber Sales Performance Sawn Timber Sales Performance

Operations Review Middle East Korea 62 Taiwan Asean India 38 China/Hong Kong 4QFY15 (Apr 15 – Jun 15) %

Timber Operation Timber Operation

4QFY16 (Apr 16 – Jun 16)

Taiwan 72% China/Hong Kong 28%

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Veneer Sales Performance Veneer Sales Performance

Operations Review 1 Australia 85 Korea Asean China/Hong Kong 14 Taiwan 4QFY15 (Apr 15 - Jun 15) %

Timber Operation Timber Operation

4QFY16 (Apr 16 – Jun 16)

Australia 2% Taiwan 26% Korea 72%

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Timber Production Timber Production Utilisation Utilisation

Operations Review

Jaya Tiasa Plywood S/B Rimbunan Hijau Plywood S/B Jaya Tiasa Timber Products S/B Total Installed Production Capacity Plywood Production (m3) Per Month Per Year 15,000 180,000 10,000 120,000 10,000 120,000 35,000 420,000 Veneer Production (m3) Per Month Per Year 27,000 324,000 27,000 324,000 Sawn Timber Production (m3) Per Month Per Year 8,200 98,400 800 14,400 9,000 112,800

Timber Operation Timber Operation

FY2015 12MFY16 22% 66% 42% Production Utilisation 2,000 17,800 14,800 Total Actual Production 11% 1,000 Per Month Sawn Timber Production (m3) 53% 14,200 Per Month Veneer Production (m3) 27% 9,500 Per Month Plywood Production (m3) Production Utilisation Total Actual Production

Note: Total actual production based on Jul 14 to Jun 15 figures

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Oil Palm Operations Oil Palm Operations

Operations Review

69,589 2,133 16,287 5,448 2,933 8,580 9,841 4,099 5,757 9,645 4,866 Estimated Plantable area (ha) Plantation Land Area (ha) Project Commence Project Complete Development work achieved in percentage Planted to-date (ha) Immature (ha) Matured (ha) Simalau Plantation 5,003 2002 2005 100% 4,866 4,866 Hariyama Plantation 10,600 2003 2007 100% 9,645 9,645 Wealth Houses Plantation 6,000 2004 2007 100% 5,757 5,757 Lepah Plantation 5,149 2005 2009 100% 4,099 4,099 Daro Plantation 11,681 2005 2011 100% 9,841 9,841 Eastern Eden Plantation 10,000 2006 2015 100% 8,580 2,020 6,560 Poh Zhen Plantation 5,000 2009 2015 100% 2,933 2,933 Sawai Plantation 6,050 2006 2012 100% 5,448 5,448 Lassa Plantation 21,300 2005 2015 100% 16,287 3,849 12,438 Kabang Plantation 2,700 2008 2010 100% 2,133 2,133 Total 83,483 69,589 8,802 60,787

Planting Schedule as at June 2016

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Oil Palm Projections Oil Palm Projections

13.83 766,467 22.7% 61.7% 15.6% 65,681 30-Jun-2014 (Actual) 12.50 740,013 39.8% 46.0% 14.3% 69,054 30-Jun-2015 (Actual) 17.37 15.33 FFB yield 1,108,610 931,745 FFB production (MT) 64.5% 53.8% Prime mature (%) (>7 years) 7.4% 12.3% Immature (%) (<4 years) 28.1% 33.9% Young mature (%) (4-7 years) 69,589 30-Jun-2017 (Budget) 69,589 30-Jun-2016 (Actual) Planted area (ha)

Operations Review

Significant contribution from oil palm sector in the next few years

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Oil Palm Yield Oil Palm Yield

Operations Review

399 740,013 193,063 67,158 67,649 58,256 112,903 43,509 34,058 35,336 182,673 45,750 61,436 75,487 251,374 84,484 91,056 75,834 FY 2015 443 766,467 167,637 52,616 61,700 53,321 151,452 53,453 41,025 56,974 213,327 60,606 69,656 83,065 234,051 79,042 74,160 80,849 FY 2014 423 666,899 167,280 64,403 57,071 45,806 127,591 40,030 41,052 46,509 179,534 51,160 61,088 67,286 192,493 68,269 57,862 66,362 FY 2013 417 931,745 263,009 103,074 84,376 75,559 160,154 58,757 48,644 52,753 234,029 65,391 73,039 95,599 274,552 96,926 95,967 81,659 FY 2016 YTD TOTAL (MT) Jul Aug Sep 1Q Oct Nov Dec 2Q Jan Feb Mar 3Q Apr May Jun 4Q Average selling price (RM/MT)

Monthly Fresh Fruit Bunch Production Volume (metric tonnes)

*FinancialYearhasbeenrestatedaccordingly

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Potential for higher FFB yields

• Our prime mature palm trees has been able to achieve a high FFB yield
• f 22.3 MT/ha
• With a young weighted average age profile of approximately 7 years
• ld, Jaya Tiasa will continue to enjoy exponential growth

8.6 7 15.4 14.4 16.2 16.9 17.3 16.7 22.3

5 10 15 20 25 4 5 6 7 8 9 10 11 12

FFB yield against age profile of trees

FFByield (MT/ha) Ageprofile(years)

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A leading earnings growth

• Jaya Tiasa was one of the earliest among listed timber companies to

venture into palm oil industry, a vision that will continue to reward shareholders for the foreseeable years

• Jaya Tiasa has planted on average of 4,639 ha per year since 2002

885 922 2388 3525 71987527 12086 9027 6866 4593 3528 4200 2936 3373 535 2000 4000 6000 8000 10000 12000 14000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Oil palm planting (2002 - 2015)

ha

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Plantation Overview

Prime Mature 54% Immature 12% Young Mature 34%

8,802 ha

• Immature (<4 years)

23,368 ha

• Young mature (4-7 years)

37,419 ha

• Prime mature (>7 years)

69,589 ha Planted area 69,589 ha Plantable area 83,483 ha Landbank

YoungProfileoftreeswithsignificantcontributionfromthesectorinthevery nearfuture.21%oftheplantedtreesareaged10yearsandolder Plantationsprofile

200 400 600 800 1000 1200 1400 FY15 FY16 FY17 FY18 Thousands

26% 20% 16% ProjectedCAGR 37,419 Ha 27,456 Ha 14,918 Ha 7,720 Ha 54% FY16 39% FY15 21% FY14 11% FY13

PrimeMatureProfile

Note:%isontotalplantedarea

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Palm Oil Mills Palm Oil Mills

Operations Review

1,423 2,289 Average PK selling price (MYR/MT) 2.5% 1,872 2,150 16.8% 12,446 4QFY15 (Apr 15 – Jun 15) 2,547 Average CPO selling price (MYR/MT) 3.2% PK Extraction Rate 6,258 PK Production (MT) 17.2% CPO Extraction Rate 4QFY16 (Apr 16 – Jun 16) Mill Production CPO Production (MT) 33,994

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Production Production Utilisation Utilisation

Operations Review

n/a 218,586 248,803 230,512 12MFY16 FFB processed (MT) n/a 67% 77% 47% Utilization Rate n/a n/a* 75% 38% Utilization Rate n/a 43,704 243,668 186,486 FY2015 FFB processed (MT) 27,000 324,000 Per Month Per Year Hariyama 27,000 324,000 Per Month Per Year Maxiwealth Total Installed Production Capacity JTOP Per Month Per Year 40,500 486,000 Maujaya Per Month Per Year 27,000 324,000

*Note: Only started operation

Palm Oil Mills Palm Oil Mills

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Palm Oil Mills Palm Oil Mills

Operations Review

65,000 Wealth House plantation 45 Jul 2009 Mill 1 30,000 90

Completed

70,000 Hariyama Plantation 60 Dec 2016 Mill 4 95,000 70,000 Capital Expenditure (RM’000) Lassa Plantation 120 Mar 2015 Mill 3 Sep 2013

Date Commission

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Capacity (MT / hour)

Daro Jaya Plantation Mill 2 Location of Palm Oil mills Mills

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Oil Palm Operations Oil Palm Operations -

• Location

Location

Operations Review

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Agenda Agenda

Company Overview Financial Performance Operation Review

Summary

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Summary: Timber Summary: Timber

Log Extraction Quota (July 2014 – June 2015) Per Month Total Per Annum Volume (m3) 78,000 936,000 Timber Products Total Installed Production Capacity Plywood Production (m3) Per Year 420,000 Veneer Production (m3) Per Year 324,000 Sawn Timber Production (m3) Per Year 112,800 Forest Concession License No. T/3113 T/3114 T/3044 Others* Total Gross Area (Hectares) 65,487 78,838 50,648 518,238 713,211 *Others refer to T/3352, T3353, T/3370, T/3372

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Summary: Oil Palm Summary: Oil Palm

39.8% 46.0% 14.3% 69,504 30-Jun-2015 (Actual) 53.8% 33.9% 12.3% 69,589 30-Jun-2016 (Actual) 64.5% 28.1% 7.4% 69,589 30-Jun-2017 75.2% Prime mature (%) (>7 years) 0% Immature (%) (<4 years) 24.8% Young mature (%) (4-7 years) 69,589 30-Jun-2018 Planted area (ha) Plantation Profile PLANTED TO-DATE Oil Palm Plantations Total Land Area Planted Area Matured Area 83,483 hectares (Estimated Plantable Area: 69,589 ha) 69,589 hectares 60,787 hectares

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Summary: Oil Palm Summary: Oil Palm

40 8.6 7 15.4 14.4 16.2 16.9 17.3 16.7 22.3

5 10 15 20 25 4 5 6 7 8 9 10 11 12

FFB yield against age profile of trees

31864 61747 99858 180684 359100 604836 666899 766467 740013 931745 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 FFB Production (MT)

Plantationsprofile

CAGR:46%

Young Mature 34% Immature 12% Prime Mature 54%

8,802 ha

• Immature (<4 years)

23,368 ha

• Young mature (4-7 years)

37,419 ha

• Prime mature (>7 years)

69,589 ha Planted area 69,589 ha Plantable area 83,483 ha Landbank

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• No. 1- 9 Pusat Suria Permata

Jalan Upper Lanang 10A 96000 Sibu, Sarawak, Malaysia www.jayatiasa.net Investor Relation Webpage Link

http://www.jayatiasa.net/usr/investor_relations.html

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This presentation was prepared for informational purposes only and shall not be copied, or relied upon by any other person for whatever purpose. This presentation must be viewed in conjunction with the oral presentation provided by officers of Jaya Tiasa Holdings Berhad. Nothing in this presentation constitutes accounting, legal, regulatory, tax or other advice. The reader(s) of this document should consult his/her

• wn professional advisors about the issues discussed herein. This presentation is not

intended as an offer or solicitation with respect to the purchase or sale of any investment product and nothing herein should be construed as a recommendation to transact in any investment product.

Disclaimer Disclaimer