nd AN 42 42 nd ANNU NUAL AL GE GENE NERAL AL ME MEET ETING 23 August t 2017
Table of Contents 01 01 Group Financial Snapshot 02 02 Group Revenue Breakdown 03 03 Group PBT Breakdown 04 04 Divisional Snapshot - Manufacturing 05 05 Divisional Snapshot - Plantation 06 06 - Plantation Performance Indicators 07 07 - Plantation Estates – Progress Update 08 08 - Plantation – Material Litigation 09 09 Key Challenges Moving Forward 10 10 11 11 Reply To Minority Shareholder Watchdog Group (MSWG)
GROUP FINANCIAL SNAPSHOT VARIANCE FYE2016/17 FYE2015/16 % REVENUE 372.1 375.2 (0.8) (RM ‘Million) OPERATING PROFIT 90.7 77.3 17.3 (RM ‘Million) PBT *61.3 77.3 (21.0) (RM ‘Million) EARNING PER 15.64 21.24 (26.4) SHARE (EPS) (SEN) NET ASSETS PER 2.33 2.30 1.3 SHARE (RM) *PBT figure is after impairment loss of RM29.4 million in property, plant and equipment and biological assets in PTNJL Annual al Gener eral l Meeting ing www.fimacorp.com 3 23 August 2017
GROUP REVENUE BREAKDOWN TOTAL REVENUE RM 372.1mill 0.8% Y-O-Y INDONESIA 35.8% MALAYSIA 64.2% RM233.3 RM133.2 RM5.6 -12.5% +29.8% -5.1% Annual al Gener eral l Meeting ing www.fimacorp.com 4 23 August 2017
GROUP OPERATING PROFIT & PBT BREAKDOWN *PBT is after impairment loss of RM29.4 million in property, plant and equipment and biological assets in PTNJL * -RM0.7 RM2.7 RM59.6 -RM0.3 RM59.6 RM28.7 -RM0.3 RM2.7 -103.3% +68.8% +10.4% -175.0% +10.4% +34.8% -175.0% +68.8% Annual al Gener eral l Meeting ing www.fimacorp.com 5 23 August 2017
DIVISIONAL SNAPSHOT MANUFACTURING Revenue Contribution by Product (RM Million) Revenue FYE2015/16 FYE2016/17 VARIANCE (%) -12 12.5% .5% 2017 233.3 Travel 126.2 152.3 -17.1% Documents 2016 266.7 Transport Decrease in revenue due to lower sales volume from 82.7 -4.8% 86.9 Documents travel documents Confidential PBT (RM Million) 7.9 7.0 +12.9% +1 +10.4% 0.4% Documents 2017 59.6 16.5 20.5 -19.5% Others 2016 54.0 Increase in PBT due to lower depreciation cost and favourable sales mix Annual al Gener eral l Meeting ing www.fimacorp.com 6 23 August 2017
DIVISIONAL SNAPSHOT PLANTATION +29.8% +2 9.8% Revenue (RM Million) 2017 133.2 2016 102.6 Increase in revenue due to higher FFB price and higher average selling price for CPO/CPKO +3 +34.8% 4.8% PBT (RM Million) PBT Before Impairment (RM Million) Decrease in PBT due to an impairment 2017 28.7 2017 loss of RM29.4 million on property, -10 103.5% 3.5% plant and equipment and biological -0.7 assets in PTNJL 2016 21.3 2016 21.3 Annual al Gener eral l Meeting ing www.fimacorp.com 7 23 August 2017
DIVISIONAL SNAPSHOT PLANTATION TOTAL LAND BANK 23,413.8 Ha Planted Area Palm Profile 1,100.8 Ha 250.2 Ha 15% 1,100.8 Ha 3% 591.1 Ha 8% 5,538.5 Ha 74% 6,379.8 Ha Indonesia >12 years 8 to 12 years Malaysia 4 to 7 years Immature Annual al Gener eral l Meeting ng www.fimacorp.com 8 23 August 2017
PLANTATION PERFORMANCE INDICATORS FY 2016/17 Yield Per Hectare Oil Extraction 20.6 MT Rate (OER) 22.7% (FYE 2015/16: 23.2 MT) (FYE 2015/16: 22.4%) FFB Harvested FFB COST 131,484 MT RM/MT 359.6 (FYE 2015/16: 149,060 MT) (FYE 2015/16: RM259.4) CPO Produced CPKO Produced 41,619 MT 3,418 MT (FYE 2015/16: 45,387 MT) (FYE 2015/16: 3,363 MT) Annual al Gener eral l Meeting ing www.fimacorp.com 9 23 August 2017
PLANTATION DIVISION Progress up to 31 st March Taka Worldwide Trading Sdn R.N.E Plantation Sdn Bhd Cendana Laksana Sdn Bhd Gabungan Warisan Sdn Bhd Bhd & Etika Gangsa Sdn` Bhd (Sg. Siput, Perak) Kemaman, Terengganu (Kuala Krai, Kelantan) (Gua Musang, Kelantan) Development Development Development Work Work Work Completed Completed Completed Pending Authorities’ Total Area : 785.4 Ha Total Area :249.8 Ha Total Area : 404.6 Ha Approval Planted Area : 760.0 Ha Planted Area :110.0 Ha Planted Area : 177.1 Ha Annual al Gener eral l Meeting ing www.fimacorp.com 10 23 August 2017
PLANTATION – PROGRESS UPDATE Cendana Laksana Sdn Bhd Kemaman, Terengganu Annual al Gener eral l Meeting ing www.fimacorp.com 11 23 August 2017
PLANTATION – PROGRESS UPDATE Gabungan Warisan Sdn Bhd (Kuala Krai, Kelantan) Annual al Gener eral l Meeting ng www.fimacorp.com 23 August 2017 12
PLANTATION – PROGRESS UPDATE Taka Worldwide Trading Sdn Bhd & Etika Gangsa Sdn Bhd (Gua Musang, Kelantan) Annual al Gener eral l Meeting ing www.fimacorp.com 13 23 August 2017
MATERIAL LITIGATION PT Nunukan Jaya Lestari Oct 2016 , Filed an application with the State Decision of Court Of Appeal Administrative Court seeking an order to is still pending to date annul the Ministerial Order. 1 2 3 4 5 • • August 2016 , PTNJL was served 13/6/17 , PTNJL’s application was Appeal by either party with an order from the Menteri dismissed by the State to be submitted to the Administrative Court Agraria dan Tata Ruang/Kepala supreme court Badan Pertanahan Nasional • 21/6/17 , PTNJL filed an application revoking PTNJL’s land title Hak Guna Usaha (“HGU”) on the basis to the Pengadilan Tinggi Tata Usaha that the HGU was improperly Negara to appeal against the State Administrative Court’s decision issued due to administrative irregularities The local government in Kabupaten Nunukan has allowed PTNJL to continue to lawfully operate its plantation operations until the final determination of the suit by the Indonesian courts. Annual al Gener eral l Meeting ng www.fimacorp.com 23 August 2017 14
KEY CHALLENGES Volatile commodity prices Higher Input Costs Fluctuation in Currencies 1 2 3 affecting global demand Supply of Labour Weather Change 5 4 Annual al Gener eral l Meeting ing www.fimacorp.com 15 23 August 2017
GOING FORWARD Manufacturing Plantation Existing Existing • Focus on core activities • Continuous yield • Enhance product and service improvement and cost pipeline management practices • Investment in new product • Committed to Good • Develop talent and Subject Agricultural Practice (GAP) Matter Expert for efficiency improvement • Adoption of technology to enhance operational area New Business efficiency Upstream • Pursue land bank expansion - New Business Greenfield and Brownfield • Strengthen strategic alliance Downstream • with partner - Explore new Explore downstream activities – Palm Oil Mill market and tap on partner network Annual al Gener eral l Meeting ing www.fimacorp.com 16 23 August 2017
STRATEGIC PLAN 2018-2022 MOVING FORWARD STATEMENT Leverage on Maintain Market Establish Strong Prudent Opportunities & Pillars For Future Financial Profile Strengthen Core Growth Businesses OUR PRIORITIES MAINTAIN MAXIMIZE SUSTAIN STRONG CASH SHAREHOLDERS’ GROWTH FLOW RETURNS Annual al Gener eral l www.fimacorp.com Meeting ing 17 23 August 2017
REPLY TO MINORITY SHAREHOLDER WATCHDOG GROUP (“MSWG”) LETTER DATED 16 th August 2017 Annual al Gener eral l www.fimacorp.com Meeting ing 18 23 August 2017
Reply to MSWG Q1 (Strategy/Financials) Q1 (A ) Could the Board clarify the Independent Auditors’ Report under the Key Audit Matter that the outcome of the appeal could only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group? The uncertain future events not wholly within the control of the Group referred to in the Independent Auditors’ Report under the Key Audit Matter are in relation to: (i) the decision of the Pengadilan Tinggi Tata Usaha Negara which is still pending todate; and (ii) the Indonesian Government’s policy decisions regarding classification and reclassification of forest lands Q1 (B) What are those uncertain future events given that the PTNJL’s land title Hak Guna Usaha (“HGU”) was issued in 2003 but has now been deemed improperly issued due to administrative irregularities, resulting in parts of the area within the HGU to overlap with forestry areas? An uncertain future event will be the Indonesian Government’s policy decisions regarding the reclassification of forestry area to agricultural land. Annual al Gener eral l www.fimacorp.com Meeting ing 19 23 August 2017
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