Investor Presentation 30-Jan-2013 Company Background Batu Kawan - - PowerPoint PPT Presentation

BATU KAWAN BERHAD

Investor Presentation

30-Jan-2013

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Company Background

• Batu Kawan Berhad (“BKB”) is an investment holding company with

subsidiaries and associates involved in chemical manufacturing, logistics, plantations, property investment and investment holding

• Incorporated in Malaysia in 1965
• Commenced operations as a plantations company when it took over the assets

and liabilities of its predecessor company, Batu Kawan Rubber and Coconuts Plantations Ltd in 1971

• Listed on the Bursa Malaysia Main Market since 12 October 1971
• Market capitalisation of RM7.6 billion(1)

(1) Market data as at 29-Jan-2013

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Company Overview

Malay-Sino Chemical

Industries Sdn Bhd (86%)

• Chlor-alkali products,

methyl chloride, ferric chloride

See Sen Chemical

Berhad (61%)

• Sulphuric acid, oleum,

aluminium sulphate, sodium silicate

Kuala Lumpur Kepong Berhad

(46.57% Associate)

• Produce and process palm products and natural

rubber, oleochemical, property development

• 251,325ha landbank – 212,300ha planted

PT Satu Sembilan Delapan (92%)

• Plantation development in Kalimantan, Indonesia
• 5,728ha landbank – 3,602ha planted

Collingwood Plantations

(18% Investment)

• Plantation development in Papua New Guinea
• 44,342ha landbank for oil palm plantations

Menara KLK

(100%)

• 11-storey

commercial building in Mutiara Damansara, Petaling Jaya

Other

investments

Note: % denotes BKB’s shareholding percentage

BATU KAWAN BERHAD

Plantations Chemicals Others

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Kuala Lumpur Kepong Berhad

• Kuala Lumpur Kepong Berhad (“KLK”) is an 46.57% associate company of

BKB

• Primary operations are in the production and processing of palm products

and natural rubber on its plantations located in Peninsular Malaysia, Sabah and Indonesia

• Total landbank of 251,325ha
• 193,230ha planted with oil palm and 19,070ha planted with rubber
• Downstream operations include refineries & fractionation, oleochemicals
• Others: Property development, Synthomer plc (19.45%)
• Listed on the Bursa Malaysia Main Market since 1974
• Market capitalisation of RM23.5 billion (1)

(1) Market data as at 29-Jan-2012

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KLK Financial Summary

Revenue

7,855 6,658 7,491 10,743 10,570 3,000 6,000 9,000 12,000 FY08 FY09 FY10 FY11 FY12 (RM million)

EPS and DPS (Net) Profit Before Tax

1,445 887 1,383 2,066 1,560 400 800 1,200 1,600 2,000 2,400 FY08 FY09 FY10 FY11 FY12 (RM million) 98 58 95 148 114 55 40 60 85 65 40 80 120 160 FY08 FY09 FY10 FY11 FY12 (Sen)

Return on Equity

18.8 10.9 16.9 22.2 17.0 5 10 15 20 25 FY08 FY09 FY10 FY11 FY12 (%)

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PT Satu Sembilan Delapan

• PT Satu Sembilan Delapan is BKB’s 92% owned

Indonesian subsidiary involved in oil palm plantation development in East Kalimantan

• Total landbank of 5,728ha – 3,602ha planted
• FY2012 results
• Revenue:

RM33.5 million

• Operating results:

RM14.9 million

• Profit per average mature area:

RM4,830 per ha

Oil Palm Planted Area

844 1,868 2,516 3,087 2537 1559 911 515 1,000 2,000 3,000 4,000 FY09 FY10 FY11 FY12 Mature Immature (hectare)

FFB Yield

3.5 14.5 16.3 18.4 5 10 15 20 FY09 FY10 FY11 FY12 (mt/ha)

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Collingwood Plantations

• In October 2011, BKB acquired 18% of Collingwood Plantations Pte Ltd

(“CPPL”) along with KLK with a 51% stake

• Purchase price for BKB’s 18% stake was RM9.8 million
• A wholly-owned CPPL subsidiary owns leases to 44,342 ha of land in

Papua New Guinea which will be developed into oil palm plantations

• A long term development leveraging on the overseas plantation

development expertise and resources of KLK

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BKB Chemical Group

Malay-Sino Chemical Industries (86%)

(industrial chemical manufacturing)

Malay-Sino Agro-Chemical Products

(industrial chemical manufacturing)

Circular Agency / North-South Transport

(chemical logistics)

See Sen Chemical Berhad (61%)

(industrial chemical manufacturing)

BASF See Sen (30% owned by SSCB*)

(specialty chemical manufacturing)

* BKB’s effective shareholding is 18%

• BKB’s Chemical Group recorded FY2012 revenues of RM294.9 million

and operating profits of RM48.9 million

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Malay-Sino Chemical Industries

MSCI is a subsidiary of BKB (86% shareholding) Incorporated in 1973 Largest producer of chlor-alkali chemical products in

Malaysia

Chlor-alkali products: chlorine, caustic soda (sodium

hydroxide), hydrochloric acid, bleach (sodium hypochlorite)

Other products: ferric chloride, ferric 200M, calcium chloride

Annual capacity of 87,000 metric tonnes of 100%

caustic soda

MSCI operates 2 chemical manufacturing plants

Location: Lahat (Perak) and Kemaman (Terengganu)

Malay-Sino Agro-Chemical Products (100% owned

subsidiary of MSCI) is one of the largest methyl chloride producer in South East Asia

Location: Lahat (Perak) Vertically integrated with MSCI’s Lahat plant

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Logistics

• Circular Agency and North-South

Transport (100% owned subsidiaries of MSCI) provides the BKB Chemical Group with its own in-house specialist chemical transporter

Vertically integrated logistics Circular Agency provides bulk tanker

transportation

North-South Transport provides bulk lorry

transportation

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See Sen Chemical Berhad

SSCB is a subsidiary of BKB (61% shareholding) Incorporated in 1965 Largest producer of sulphuric acid in Malaysia

Products: sulphuric acid, oleum, dilute sulphuric acid,

solid and liquid aluminium sulphate, sodium silicate, liquid sulphur, sulphur powder

Annual capacity of 245,000 metric tonnes

sulphuric acid

SSCB operates 2 chemical manufacturing plants

Location: Pasir Gudang (Johor) and Kemaman

(Terengganu)

BASF See Sen (30% associate of SSCB)

produces high purity sulphuric acid for the electronics industry

Location: Kemaman (Terengganu) Vertically integrated with SSCB’s Kemaman plant Joint-venture partner is BASF (70%), the world’s

leading chemical company

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Menara KLK

• Menara KLK is owned by Batu Kawan Holdings Sdn Bhd (100% owned subsidiary)
• Completed in March 2009, Menara KLK is a 11-storey commercial office building with a 4-

storey podium and a 2-level basement car park

• Located in Mutiara Damansara, Petaling Jaya next to Tesco, Ikea, The Curve, Ikano

Power Centre and Cineleisure Damansara

• Occupancy rate(1) of 95%; KLK is the anchor tenant of the building
• FY2012 rental income of RM6.3 million and operating profit of RM3.3 million

(1) As at 30-Sep-2012

Tenants

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BKB Financial Summary

Operating Profit

38 66 103 55 63 20 40 60 80 100 120 FY08 FY09 FY10 FY11 FY12 (RM million)

Share of Results of Associates Profit Before Tax

523 351 573 785 626 200 400 600 800 1,000 FY08 FY09 FY10 FY11 FY12 (RM million)

Return on Shareholders’ Equity

18.1 11.6 18.1 21.2 16.3 5 10 15 20 25 FY08 FY09 FY10 FY11 FY12 485 285 471 732 564 200 400 600 800 FY08 FY09 FY10 FY11 FY12 (%) (RM million)

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Dividends and Shareholders’ Equity

2.8 2.9 3.1 3.7 3.8 6.5 6.8 7.5 8.8 9.0 0.0 2.0 4.0 6.0 8.0 10.0 1.0 1.5 2.0 2.5 3.0 3.5 4.0 FY08 FY09 FY10 FY11 FY12

Shareholders' Equity Net Assets per Share

(RM billion)

Shareholders’ Equity and Net Assets per Share

117.3 79.2 134.2 186.5 145.3 57.9 40.0 65.0 95.0 65.0 50 100 150 200 FY08 FY09 FY10 FY11 FY12

EPS DPS (Net) (Sen)

Earnings per Share and Dividends per Share (Net)

(RM / Share)

BATU KAWAN BERHAD

Thank You