Corporate Presentation 1st Quarter 2015 (period ended 30 Sep 2014) - - PowerPoint PPT Presentation

Corporate Presentation

1st Quarter 2015

(period ended 30 Sep 2014)

UpdatedNovember2014 1

Agenda Agenda

2

Financial Performance Operations Review Summary

Company Overview

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

3 Company Overview

Round logs Plywood Sawn Timber Veneer Fresh Fruit Bunch

Timber Concession Area Timber Concession Area

4 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 2014 – June 2015)

Per Month Total Per Annum Volume (m3) 92,000 1,104,000

Large timber concession area and quota in Malaysia

5 Company Overview

• Timber Concession

Timber Concession -

• location

location

Bakun Dam

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:-

6

Oil Palm Operations Oil Palm Operations

• Sizeable oil palm estate with an estimated plantable area of

69,873 ha. Planted 66,509 ha to-date.

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

7 Company Overview

PLANTED TO-DATE Oil Palm Plantations Total Land Area Planted Area Matured Area 83,483 hectares (Estimated Plantable Area: 69,873 ha) 66,509 hectares 59,031 hectares

Crude Palm Oil Crude Palm Oil

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

• P

8

9

PLANTED TO-DATE

27% 12,036* 44,317 71,828 Guanaco Maujaya LPF 0028 16% 9,775* 62,027 108,144 Bahau Linau LPF 0024 27% 9,246* 34,033 55,887 Merirai Balui LPF 0023 22% 31,058* 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

Planted Forest Operations Planted Forest Operations

• Location

Location

10 Company Overview

Bakun Dam

Company Overview Operations Review Summary

Agenda Agenda

11

Financial Performance

5 5-

• Year Financial Highlights

Year Financial Highlights

Financial Performance 12 *Financial Year changed to 30 June starting FY2012 ie 14 months

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 2.93 25,075 40,036 19,134 28,535 108,652 746,001 FY 2010 22,897 86,411 EBIT (1,046) 60,385 Operating Profit 2.18 22,271 31,269 111,539 1,054,098 FY 2013 RM’000 FY 2014 Revenue 1,033,342 EBITDA 172,970 Profit Before Tax 79,949 Profit After Tax 55,619 Earnings per Share (sen) 5.49

1QFY2015 Financial Highlights 1QFY2015 Financial Highlights

(Jul 2014 (Jul 2014 – – Sep 2014) Sep 2014)

RM’000 1Q FY15 1Q FY14 QoQ % 3M FY15 3M FY14 YoY % Revenue 261,864 245,468 7% 261,864 245,468 7% Gross Profit 75,476 65,209 16% 75,476 65,209 16% Profit before Tax 32,479 26,008 25% 32,479 26,008 25% Profit net of Tax 23,821 19,475 22% 23,821 19,475 22% Earnings per Share (sen) 2.43 1.97 23% 2.43 1.97 23%

Financial Performance 13

Profit Performance by segment Profit Performance by segment

FY 2014

Revenue RM’000 Revenue % PBT RM’000 PBT % Profit Margin Timber products 711,849 75% 49,826 60% 7% Oil palm operations 321,267 25% 33,486 40% 10% Operating results 1,033,116 100% 83,312 100% 8%

Financial Performance 14

3MFY15

Revenue RM’000 Revenue % PBT RM’000 PBT % Profit Margin Timber products 165,249 63% 30,449 68% 18% Oil palm operations 96,450 32% 14,176 32% 15% Operating results 261,699 100% 44,625 100% 17%

Cash Flow Cash Flow

Financial Performance 15

RM ’000 Current year-to-date 30 Sep 2014 Corresponding year-to-date 30 Sep 2013 Net cash generated from

• perating activities

(4,606) 16,576 Net cash used in investing activities (35,596) (46,200) Net cash generated from/(used in) financing activities 29,269 (24,941) Effect of exchange rate changes (1) 8 Cash & cash equivalents at beginning of financial period (64,944) 6,695 Cash & cash equivalents at end

• f financial period

(75,878) (47,862) (64,944) 6,695 8 (70,135) (188,358) 186,846 FY 2014

Balance Sheet Balance Sheet

16

RM ’000 As at 30/09/14 As at preceding FY end 30/06/14 Non-Current Assets 2,632,983 2,604,567 Current Assets 425,636 407,848 Total Assets 3,058,619 3,012,415 Total Equity 1,778,989 1,755,170 Non-Current Liabilities 408,741 425,655 Current Liabilities 870,889 831,590 Total Equity & Liabilities 3,058,619 3,012,415 Net Asset per share (RM) 1.83 1.81

Financial Performance

Agenda Agenda

Company Overview Financial Performance Summary

17

Operations Review

Revenue Breakdown by Products Revenue Breakdown by Products

18 Operations Review 1,548 857 654 1,877 FY2014 1,752 1,627 Veneer 906 818 Sawn Timber RM/m3 1QFY15 1QFY14 Plywood 1,882 1,890 Logs 682 645

Source: Jaya Tiasa Holdings Berhad

Average Selling Price

1,557 2,394 443 FY2014 392 394 FFB 2,157 2,194 CPO 1,239 1,403 PK RM/MT 1QFY15 1QFY14

1QFY15 (Jul 14 – Sep 14)

16 FFB 15 CPO 5 Veneer 1 PK 1QFY14 Jul 13 - Sep 13 (%) Plywood 32 Logs 29 Sawn Timber 2

Logs 29% Veneer 7% FFB 15% CPO 21% PK 2% Plywood 24% Sawn Timber 2%

Average Export Timber Price Trend Average Export Timber Price Trend

Financial Performance 19

100 200 300 400 500 600 700

1Q FY13 2Q FY13 3Q FY13 4Q FY13 1Q FY14 2Q FY14 3Q FY14 4Q FY14 1Q FY15

USD/m3

Logs Plywood

Average Palm Oil Price Trend Average Palm Oil Price Trend

Financial Performance 20

500 1000 1500 2000 2500 3000 3500 1Q FY13 2Q FY13 3Q FY13 4Q FY13 1Q FY14 2Q FY14 3Q FY14 4Q FY14 1Q FY15

RM/MT

FFB CPO PK

Revenue Breakdown by Countries Revenue Breakdown by Countries

21 Operations Review 1 UK / Europe USA 4 Asean Australia 1QFY14 (Jul 13 – Sep 13) % Japan 5 India 28 Middle East 1 Taiwan 28 Korea 23 China / Hong Kong 10

Timber Operation Timber Operation

1QFY15 (Jul 14 – Sep 14)

Taiwan 24% Hong Kong/China 14% Japan 9% Asean 5% UK/Europe 1% Korea 20% Middle East 1% India 26%

Logs Sales Performance Logs Sales Performance

22 Operations Review

1QFY11 ( May 10 – Jul 10)

2 Korea 1QFY14 (Jul 13 – Sep 13) % Japan 4 India 69 Taiwan 16 China/Hong Kong 2 Asean 7

Timber Operation Timber Operation

1QFY15 (Jul 14 – Sep 14)

India 54% Korea 2% HongKong/ China 7% Japan 5% Asean 10% Taiwan 22%

Plywood Sales Performance Plywood Sales Performance

23 Operations Review 1 UK/Europe Asean USA 1QFY14 (Jul 13 – Sep 13) % Middle East 3 Japan 6 Korea 40 China/ Hong Kong 16 Taiwan 34

Timber Operation Timber Operation

1QFY15 (Jul 14 – Sep 14)

Taiwan 22% Hong Kong/China 24% UK/Europe 1% Japan 16% Middle East 2% Korea 35%

Sawn Timber Sales Performance Sawn Timber Sales Performance

24 Operations Review Middle East 4 Korea 12 Taiwan 59 Asean 16 India 9 China/Hong Kong 1QFY14 (Jul 13 – Sep 13) %

Timber Operation Timber Operation

1QFY15 (Jul 14 – Sep 14)

Asean 76% China/Hong Kong 24%

Veneer Sales Performance Veneer Sales Performance

25 Operations Review 27 Korea 3 Australia 70 Taiwan 1QFY14 (Jul 13 – Sep 13 ) %

Timber Operation Timber Operation

1QFY15 (Jul 14 – Sep 14)

Korea 43% China/Hong Kong 2% Australia 2% Taiwan 53%

Timber Production Timber Production Utilisation Utilisation

26 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

FY2014 3MFY15 27% 68% 41% Production Utilisation 2,400 18,300 14,400 Total Actual Production 21% 1,900 Per Month Sawn Timber Production (m3) 68% 18,300 Per Month Veneer Production (m3) 40% 14,000 Per Month Plywood Production (m3) Production Utilisation Total Actual Production

Note: Total actual production based on Jul 14 to Sep 14 figures

Oil Palm Operations Oil Palm Operations

27 Operations Review

69,873 2,133 15,800 5,383 3,500 9,000 9,690 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% 9,690 9,690 Eastern Eden Plantation 10,000 2006 2015 90% 7,033 473 6,560 Poh Zhen Plantation 5,000 2009 2015 85% 2,739 2,739 Sawai Plantation 6,050 2006 2012 100% 5,448 5,448 Lassa Plantation 21,300 2005 2015 97% 15,099 4,266 10,833 Kabang Plantation 2,700 2008 2010 100% 2,133 2,133 Total 83,483 66,509 7,478 59,031

Planting Schedule as at September 2014

Oil Palm Projections Oil Palm Projections

17.84 1,051,613 37.4% 49.8% 12.8% 67,587 30-Jun-2015 19.59 13.83 13.89 16.16 FFB yield 1,194,030 766,467 666,899 604,836 FFB production (MT) 55.4% 22.7% 12.3% 7.2% Prime mature (%) (>7 years) 9.8% 15.6% 23.5% 36.1% Immature (%) (<4 years) 34.8% 61.7% 64.2% 56.7% Young mature (%) (4-7 years) 67,587 30-Jun-2016 65,681 30-Jun-2014 (Actual) 62,745 30-Jun-2013 (Actual) 58,545 30-Jun-2012 (Actual) Planted area (ha)

Operations Review 28

Significant contribution from oil palm sector in the next few years

Oil Palm Yield Oil Palm Yield

29 Operations Review

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 533 508,701 138,664 49,548 48,505 40,611 98,020 33,312 27,983 36,725 127,117 41,879 43,456 41,782 144,899 43,680 52,195 49,024 FY 2012* 394 251,374 251,374 84,484 91,056 75,834 FY 2015 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

Potential for higher FFB yields

• Our prime mature palm trees has been able to achieve a high FFB yield
• f 27.2 MT/ha
• With a young weighted average age profile of approximately 7 years
• ld, Jaya Tiasa will continue to enjoy exponential growth

7.7 12 16.4 18.6 21.9 23.4 27.2

5 10 15 20 25 30 4 5 6 7 8 9 10

FFB yield against age profile of trees

FFByield (MT/ha) Ageprofile(years)

30

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 5,052 ha per year since 2002

885 922 2388 3525 7198 7527 12086 9027 6866 4593 3528 4200 2936 1906 2000 4000 6000 8000 10000 12000 14000

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

Oil palm planting (2002 - 2015)

ha

31

Plantation Overview

Prime Mature 41% Immature 11% Young Mature 48%

7,478 ha

• Immature (<4 years)

31,575 ha

• Young mature (4-7 years)

27,456 ha

• Prime mature (>7 years)

66,509 ha Planted area 69,873 ha Plantable area 83,483 ha Landbank

YoungProfileoftreeswithsignificantcontributionfromthesectorinthevery nearfuture.Only12%oftheplantedtreesareaged10yearsand older Plantationsprofile

32

200 400 600 800 1000 1200 1400 FY13 FY14 FY15 FY16 Thousands

30% 26% 21% ProjectedCAGR 37,419 Ha 27,456 Ha 14,918 Ha 7,720 Ha 56% FY16 41% FY15 22% FY14 12% FY13

PrimeMatureProfile

Note:%isontotalplantedarea

Palm Oil Mills Palm Oil Mills

33 Operations Review

1,239 1,403 Average PK selling price (MYR/MT) 2.56% 3,536 2,157 15.16% 20,970 1QFY14 (Jul 13 – Sep 13) 2,194 Average CPO selling price (MYR/MT) 3.12% PK Extraction Rate 4,684 PK Production (MT) 18.29% CPO Extraction Rate 1QFY15 (Jul 14 – Sep 14) Mill Production CPO Production (MT) 27,443

Palm Oil Mills Palm Oil Mills

34 Operations Review

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

Completed

70,000 Hariyama Plantation 60 Dec 2015 Mill 4 95,000 70,000 Capital Expenditure (RM’000) Lassa Plantation 120 Dec 2014 Mill 3 Sep 2013

Date Commission

60

Capacity (MT / hour)

Daro Jaya Plantation Mill 2 Location of Palm Oil mills Mills

Oil Palm Operations Oil Palm Operations -

• Location

Location

35 Operations Review

Agenda Agenda

Company Overview Financial Performance Operation Review

36

Summary

Summary: Timber Summary: Timber

37

Log Extraction Quota (July 2014 – June 2015) Per Month Total Per Annum Volume (m3) 92,000 1,104,000 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

Summary: Oil Palm Summary: Oil Palm

38

12.3% 64.2% 23.5% 62,745 30-Jun-2013 22.7% 61.7% 15.6% 65,681 30-Jun-2014 37.4% 49.8% 12.8% 67,587 30-Jun-2015 55.4% Prime mature (%) (>7 years) 9.8% Immature (%) (<4 years) 34.8% Young mature (%) (4-7 years) 67,587 30-Jun-2016 Planted area (ha) Plantation Profile PLANTED TO-DATE Oil Palm Plantations Total Land Area Planted Area Matured Area 83,483 hectares (Estimated Plantable Area: 69,873 ha) 66,509 hectares 59,031 hectares

Summary: Oil Palm Summary: Oil Palm

39 7.7 12 16.4 18.6 21.9 23.4 27.2

5 10 15 20 25 30 4 5 6 7 8 9 10

FFB yield against age profile of trees

318646174799858 180684 359100 604836 666899 766467

2007 2008 2009 2010 2011 14M12 2013 2014

FFB Production (MT) 7,478 ha

• Immature (<4 years)

31,575 ha

• Young mature (4-7 years)

27,456 ha

• Prime mature (>7 years)

66,509 ha Planted area 69,897 ha Plantable area 83,483 ha Landbank

Plantationsprofile

CAGR:58%

Young Mature 48% Immature 11% Prime Mature 41%

40

• No. 1- 9 Pusat Suria Permata

Jalan Upper Lanang 10A 96000 Sibu, Sarawak, Malaysia www.jayatiasa.net 40 Investor Relation Webpage Link

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

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.

41

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