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Felda Global Ventures Holdings Berhad – Corporate Presentation Version 1.0
May 2013
Version 1.0 May 2013 Disclaimer These materials have been prepared - - PowerPoint PPT Presentation
STRICTLY CONFIDENTIAL Felda Global Ventures Holdings Berhad Corporate Presentation Version 1.0 May 2013 Disclaimer These materials have been prepared by Felda Global Ventures Holdings Berhad (FGVH or the Company) solely for
May 2013
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These materials have been prepared by Felda Global Ventures Holdings Berhad (“FGVH” or the “Company”) solely for informational purposes, and are strictly confidential and may not be taken away, reproduced or redistributed to any other person. By attending this presentation, participants agree not to remove this document from the conference room where such documents are provided without express written consent from the Company. Participants agree further not to photograph, copy or otherwise reproduce these materials at any point of time during the presentation or while in your possession. By attending this presentation, you are agreeing to be bound by the foregoing restrictions. Any failure to comply with these restrictions may result in a violation of applicable laws and commencement of legal proceedings against you. It is not the Company’s intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company’s financial position or prospects. The information contained in these materials has not been independently verified and is subject to verification, completion and change without notice. The information contained in these materials is current as of the date hereof and are subject to change without notice, and its accuracy is not guaranteed. The Company is not under any obligation to update or keep current the information contained in these materials subsequent to the date hereof. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company, or any of its directors and affiliates or any other person, as to, and no reliance should be placed for any purposes whatsoever on, the fairness, accuracy, completeness or correctness of, or any errors or omissions in, the information contained in these materials. Neither the Company, its directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of these materials or their contents or otherwise arising in connection therewith. These materials contain historical information of the Company which should not be regarded as an indication of future performance or
These forward-looking statements reflect the Company’s current views with respect to future events and are not a guarantee of future performance or results. Actual results, performance or achievements of the Company may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will
trends of the markets are not necessarily indicative of the future or likely performance of the Company, and the forecast financial performance of the Company is not guaranteed. No reliance should be placed on these forward-looking statements, if any.
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Federal Land Development Authority ("FELDA”) was established as a statutory body under Land Development Ordinance
than 850,00 Ha of land granted by state government under Group Settlement Area Act 1960 (“GSA”) had been brought under cultivation through FELDA operations
Koperasi Permodalan Felda (“KPF”) was established under the Co-operative Act
stop further intake
settlers
Incorporation
Felda Holdings Berhad (“FHB”) as a wholly owned subsidiary of FELDA
Incorporation
FGV as a wholly owned subsidiary of FELDA
North America from FELDA
equity interest in FHB from FELDA
FGVH acquired sugar business
listed on the Main Market of Bursa Securities
Business Model FGV was listed on the Main Market of Bursa Securities on 28 June 2012
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Notes : (1) Direct interest 20%, through FAHC , wholly owned by FELDA 19% (2) A subsidiary of FHB
39%(1) Leased Land of 355,864 Ha Employees Employees Employees Oversees the agricultural activities undertaken by settlers 51% 49% *KPF members: 231,902 comprising of 202,870 settlers group and 29,032 employees of FELDA Group * FELDA settlers
479,765 Ha of land
More than 850,000 Ha
355,864 Ha Felda Settlers 479,765 Ha
the land
FELDA/Settlers
arrangements with FELDA
Granted by state governments under Group Settlement Area Act 1960 (GSA)
FELDA FELDA
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Stock Update
FGV was included in the FTSE Bursa Malaysia Kuala Lumpur Composite (FBM KLCI) on 24 December 2012. Issued Price : RM4.55 Closing Price on 13 May 2013 : RM4.56 Market Cap: RM16,634.88
FGV Stock Price Investor %
FELDA 20% Felda Asset Holdings 19% PNB 8% Citigroup Nominees - EPF 8% Lembaga Tabung Haji 8% KWAP 7% Kerajaan Negeri Pahang 5% Sabah State Government 5% Qatar Holdings 2% Total 82%
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Jabar (independent)
Ridza Ridzuan (independent)
Baba (independent)
Ismail (non-independent)
Irwan Serigar Abdullah (non-independent) YB Tan Sri Haji Mohd Isa Dato’ Haji Abdul Samad (non-independent)
Ahmad (non-independent)
Abdullah (non-independent)
Wan Abdul Aziz Wan Abdullah (non-independent)
Salim (non-independent)
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Chief Strategy Officer
PhD (Finance), MBA (Finance),BA Hons (Business Studies), Advanced Management Program in Harvard
Dato’ Sabri Ahmad Group President and Chief Executive Officer
MsC (Agricultural Economics), BsC (Agriculture), Advance Diploma in International Studies, Advance Diploma in Management
CEO Designate
PhD (Govt Reforms) Warnborough University, MA (Engineering Mgmt) Warwick University, BA Hons (Chemistry) UKM
Dato’ Khairil Anuar Aziz Chief Operating Officer Head of Manufacturing Logistic & Others
BA Hons (Marketing Management)
Fairuz Ismail Head of Global Plantations
Diploma in Planting & Industry Management
Ahmad Tifli Dato’ Hj Mohd Talha Chief Financial Officer
ICAEW, MIA member
Abdul Halim Ahmad Head of Downstream Business
Diploma in Mechanical Engineering
Nik Mustapha Nik Mohamed Chief Human Resource Officer
MBA, Master of Science, Bachelor
Palaniappan Swaminathan Head of Research and Development
Master of Science, Bachelor of Science
Chua Say Sin Head of Sugar Business
Master of Engineering Science, Bachelor in Electrical Engineering
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plantation manager in the world
– 355,864 ha on leased and managed land – Primarily oil palms – Small proportion of rubber plantations
– 14,385 hectares of wholly
– 42,000 hectares through a JV
Plantations
refined sugar in Malaysia
– 57% market share – 2 sugar refineries
Sugar
– 1 oleochemical facility
– 1 soybean and canola crushing and refining facility in Canada
– 2 refineries in Malaysia – 4 refineries in Indonesia, China and Turkey – 1 downstream processing facilities in China – 1 other oils & fats facility in the United States
Downstream
51% 49%
globally
– 3.3 MM MT produced in 2012
Strong R&D Support Integrated palm oil
and 2 refineries in Pakistan and China through an associate and a joint venture
associate
Other Businesses
Felda Holdings Berhad (FHB)
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Notes: (1) Includes JV operations * Joint- ventures (2) China’s refineries consist of 2 palm oil refineries # Associate and 1 downstream processing facility ^ Subsidiary
Plantations Refinery Bulking Installation Sales & Marketing Canola and Soybean Oleochemicals Rubber Oils & Fats Sugar Legend:
Canada USA China(2) Indonesia Pakistan France Spain Australia
Malaysia Thailand Turkey
US Specialty oils & fats plant 1 Oleochemical plant* Europe 2 Trading offices in France & Spain* Turkey 1 Refinery* Pakistan 1 Refinery# China 1 refineries* 1 refinery# Indonesia 56,385 ha of oil palm plantation(1) 1 Refinery* Malaysia 343,521 ha of oil palm plantation 71 Mills# 4 Crushing plants via associate 7 Refineries*# 1 Oleochemical plant* 2 Sugar^
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2 Plantation Statistics
Plantation Statistics FYE 2012 FYE 2011 Change FFB Production (million MT) 4.91 5.16
FFB yield per mature ha (MT) 19.16 19.92
CPO Production (million MT) 3.285 3.293
PK Production (million MT) 0.850 0.841 +1 % CPO Extraction Rate (OER) 20.51 20.48 +0.1 % CPO Price (RM per MT) 2,843 3,218
Total Land Under Management
Oil Palm
323,587 ha Malaysia
19,934 ha Malaysia Rubber
9,472 ha Peninsular Malaysia
d: 836 ha Peninsular Malaysia FGV Oil Palm Trurich JV 42,000 ha East / Central Kalimantan 50% Oil Palm PT Citra Niaga 14,385 ha West Kalimantan 95% Malaysia (LLA) 355,864 ha Indonesia Malaysia (Felda Agricultural Services) Oil Palm 11,723 ha Malaysia Other Uses(4) 1,023 ha Malaysia Includes 2,035 ha
FHB 49%
1
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4 Replanting Program for Plantation Estates
12,019 12,736 8,238 13,665 14,428 16,000 15,000 15,000 15,000 2007 2008 2009 2010 2011 2012A 2013F 2014F 2015F
Hectares
Age Profile as at Feb 2013 3
Immature (0-3), 18 % Young (4-9), 17% Prime (10-14), 7% Prime (15-20), 9% Old (21-25), 34% Old(25+), 15%
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Facilities 1
Becancour, Quebec, Canada.
: 396,000 mt Soy and canola oils are used for a variety of consumer purposes, such as edible oils, and industrial purposes, such as biodiesel and
Massachusetts U.S.A.
: 175,000 mt Fatty acids are used in the production of food, personal care products, cosmetics, pharmaceuticals, rubber products and textile products, and glycerin is widely used in pharmaceutical for formulations, including as food and beverage additives and as an intermediary in the productions of soaps and other pharmaceuticals.
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Sugar Assets Owned by FGVH
– 100% acquired in 2010 – IPO in June 2011 on Bursa Malaysia
Initiatives
– Increasing annual production at KGFP by 50,000 MT to 200,000 MT – Increasing daily raw melt capacity at MSM by 1,000 MT to 4,000 MT – Increasing raw sugar storage capacity at MSM by 100,000 MT to 200,000 MT and refined sugar storage capacity by 10,000 MT to 37,000 MT
2 Refineries, Packaging, Storage and Distribution
– Annual production capacity: 960,000 MT of refined sugar
– Sugar cane crushing capacity: 5,500 MT per day – Annual production capacity: 150,000 MT of refined sugar – Warehouse facilities on-site and bulk cargo terminal at Prai, Penang
– Connected to the Prai refinery by rail
– Connected to the Prai refinery by rail
1 3
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Integrated Operations Across Value Chain
1
Plantation Estates
plantations in Malaysia
plantation in Indonesia
FFB in 2012
Mills
milling capacity
produced
Refineries
through JV
through associates
(including JVs and associates)
Logistics
752,250 MT capacity
MT storage capacity
– 251 palm oil tanker and 186 lorries.
RBD Products & Packed Goods
99,000 MT of packed goods for consumers and food services industry
1.5 mil MT of RBD products
Oleochemicals
through JV
M’sia and Quincy, Mas. US
fatty alcohols and glycerin
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Note: (1) Through associate FHB
1
5
2
3
Focused on palm and Malaysia while diversified across select commodities 4
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469 391 288 217 217 158 148 140 86 50 100 150 200 250 300 350 400 450 500
Sime Darby Golden Agri FGVH Astra Agro Wilmar Salim Ivomas KL Kepong IOI First Resources
Notes: (1) Includes both land that is leased by FGVH and that is managed by FGVH in Sarawak (2) Based on mature hectarage (oil palms aged 4 years and beyond) (3) % of global mature oil palm planted area. In 2011, there was 13.4 million hectares of mature oil palm planted area globally. Source: Frost & Sullivan (4) Latest publicly available information is as of 2010
’000s Ha
Peninsular Malaysia
East Malaysia Plantation Estates
Our Operations
Sabah Sarawak Kedah Penang Perak Kelantan Terengganu Pahang Selangor Malacca Lahad Datu Sahabat Sahabat Complex Sampadi Complex Negeri Sembilan) Johor
0.6% 1.1% 1.1% 1.2% 1.6% 1.6% 2.1% 2.9% 3.5%
Source: Frost & Sullivan, FGVH, various company annual reports and websites
%(3)
(4)
(1)
Tawau Perlis
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Source: Frost & Sullivan, Oil World, various company annual reports and websites
Market Share (%) 6.6% 4.9% 4.3% 3.5% 2.5%
Notes: (1) Through FPI. Effective March 2012, FGVH entered into a contract with FPI to process substantially all internally-produced FFB and to offtake substantially all CPO from internal and external crop (2) Market share is calculated based on publicly available information on CPO production volumes in Malaysia (3) Latest publicly available information is in 2010
MM MT 2011 Global CPO Production FHB’s Market Share in CPO Production (Malaysia), 2011 (2)
(1) Source: Frost & Sullivan, Oil World, FGVH, various company annual reports and websites
3.3 1.5 0.7 0.2 1 2 3 4 FHB Sime Darby IOI KULIM (Malaysia) 17.4% 7.9% 3.6% 0.9% Market Share (%)
MM MT
(3)
(1)
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Notes: (1) A small proportion of the FFB produced by the FELDA-leased land is sold to third parties. In 2011, this amounted to 70K MT of FFB (2) Across all FFB sources, to FPI, a 72%-owned subsidiary of FHB from which we purchase substantially all of the CPO produced
5.2 4.7 5.1 4.9 4.8 4.8 5.3 5.6 4.9 4.7 5.4 5.3 0.3 0.2 0.3 0.3
2 8 14 20 2009 2010 2011 2012
19.8 18.8 19.9 19.2 19.2 18.0 19.7 18.9 17 18 19 20 21 2009 2010 2011 2012 Average FGVH FFB Yield Malaysia Palm Oil Board benchmark
MT / Ha
Our FFB Yield Exceeds Malaysian Benchmarks
Total: 15.2 MM MT 14.5 MM MT 16.1 MM MT
FFB Supply Balanced Across Multiple Sources Total Sources of FFB (MM MT)
FELDA-Leased and Managed Land (1) FELDA Settlers Third Parties FELDA Agricultural Services
16.0 MM MT
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Increase yield and efficiency Reduce production costs Ensure environmental sustainability Maximize profits in the long run
Notes: (1) Felda Agricultural Services (FAS) is a 76.9%-owned subsidiary of FHB, our 49%-owned associate (2) Includes (i) a phosphate transport marker that can be used to detect oil palms with lower phosphate fertilizer requirements and (ii) a Ganoderma boninsense marker that is intended to be used to develop Ganoderma boninsense-tolerant planting material (3) Namely, rats, leaf-eating caterpillars, rhinoceros beetle and the fungal pathogen Ganoderma boninense
Oil Palm Breeding & Selection
Biotechnology
– Filed patents for 2 types of markers(2) Agronomy & Crop Protection Programs
with emphasis on biological control
Applied Technology
Downstream R&D
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Rationale for crop diversification across the value chain Complementary crops: palm and rubber Natural hedge against commodity volatility Downstream businesses protect upstream margins
% Revenue (palm oil and rubber) RM MM
10,000 15,000 20,000 25,000 Plantations Downstream Sugar MLO Total
26% 7% 11% 100% 56%
Asia (ex-Malaysia) 2% North America 12% Others 0.4% Europe 0.1% Malaysia 85%
Notes: (1) YTD 3Q Revenue Split by Segment (2) 1H Revenue Spilt by Geography
Key benefits Diversify macroeconomic exposure / risk Broader reach to global customers and end-customers
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Notes: (1) Exchange rate of USD1 = MYR3.08 as of 28 Sep 2012 (Bloomberg) (2) FGVH owns a 20% stake in Tradewinds
Source: Frost & Sullivan
MSM 48.8% KGFP 8.1% Tradewinds 43.1%
Leading Market Share in Malaysia of 57% in 2011
(2)
% of Total Production Volume
(KLSE:MSM)
at 10 May 2013
51%
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 2009 2010 2011 2012 2013 2014 2015 2016 2017
Million tones/year
Projected Annual RSPO Audit for Felda Group (for sustainable palm oil production)
Unilever, which purchases 3% of all global palm oil has been a key player in driving demand, with its commitment to buy only certified sustainable palm oil (CSPO) by the end of 2015. Source: RSPO website By 2015, we intend to purchase and use only palm oil that we can confirm to have originated from responsible and sustainable Source: P&G website Nestle sets 2020 targets, to use only sustainable palm oil Source: Nestle website
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Income Statement Audited(1) Proforma Audited(3) AS AT 31 DECEMBER AS AT 31 DECEMBER AS AT 31 DECEMBER 2010 2011 2010 2011 2012 RM’000 RM’000 RM’000 RM’000 RM’000 Revenue 3,149,510 4,201,168 5,804,601 7,453,077 12,886,499 Profit before zakat and taxation 366,371 236,176 1,184,391 1,904,787 1,126,220 Profit for the financial period/year 287,255 148,789 929,367 1,400,247 905,058 EBITDA 592,583 416,583 1,443,366 2,117,191 1,230,676 Dividend payout ratio 49.1% Balance Sheet Proforma Audited(3) AS AT 31 DECEMBER AS AT 31 DECEMBER 2011 2012 RM’000 RM’000 Total equity and liabilities 9,758,048 16,499,301
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