CB Industrial Product Holding BerhadInvestor Presentation . 0 2000 4000 6000 8000 10000 0 0.5 1 1.5...
Transcript of CB Industrial Product Holding BerhadInvestor Presentation . 0 2000 4000 6000 8000 10000 0 0.5 1 1.5...
CB Industrial Product Holding Berhad Equipping Palm Oil Industries Around The World
Investor Presentation
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Adjusted CBIP Price Bursa Plantation Index
Our History and Background
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History and Background
Established in 1980s and listed on the Main Board
of Bursa Malaysia Securities Berhad in 2005
Primarily involved in 3 business segments:
Palm oil engineering;
Special purpose vehicle retrofitting; and
Oil palm plantation and milling
The first publicly-listed player in the palm oil
engineering sector globally
Joint-holders of the Modipalm Continuous
Sterilization milling system patent together with the
Malaysian Palm Oil Board
Markets are centralised in Indonesia, Malaysia and
the African/Central American region
Historical Share Performance
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Adjusted CBIP Price Adjusted CBIP Volume
RM CBIP Shares
RM Index Point
Aug 13 Nov 16
Aug 13 Nov 16
CAGR: -3.79%
CAGR: 13.12%
323
522 590 601
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Key Group Financial Highlights
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(RM million)
Revenue
FY11 FY12 FY13 FY14 FY15
Profit Before Taxation
(RM million)
71
99
126
107
140
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40
60
80
100
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140
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FY11 FY12 FY13 FY14 FY15
Shareholders’ Funds
(RM million)
381
484 530
599 669
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FY11 FY12 FY13 FY14 FY15
PATAMI
(RM million)
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98 91 94
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FY11 FY12 FY13 FY14 FY15
0.46
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Borrowings Gross Gearing Ratio
Notes:
^ After adjusting for bonus issue of 134,445,974 amd 272,008,473 new
ordinary shares
º Includes special dividend of 15 sen per share
Includes special dividend of 4 sen per share
Key Group Financial Highlights
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RM’000 Times
Low Gearing Ratio Attractive Dividend Payout
• Funding flexibility
• Capability to undertake strategic acquisitions
and/or organic expansion
• Stable dividend policy with a target of
approximately 30% PATAMI payout ratio
• Attractive annual reward to shareholders while
maintaining growth momentum
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7.5 5 5.5 10
90%
17% 27%
32%
56%
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FY11º FY12 FY13 FY14 FY15*
Gross Dividend Per Share^ Payout Ratio
sen % of PATAMI
Latest Quarter Review
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Movement of CBIP mimics the movement of the Bursa Malaysia Plantation
Index, which is largely dependent upon the price of CPO
Third Quarter Results Review
Continuing Operations Quarter ended
30 September
% change 9 months period ended
30 September
% change
2016 2015 2016 2015
(RM’000) (RM’000) (RM’000) (RM’000)
Revenue 140,691 124,013 13.44 391,673 357,278 9.62
Profit from operations 35,566 21,810 63.07 77,355 72,089 7.30
Share of results of associates and
jointly-controlled entity
5,510 3,385 62.77 6,599 2,460 168.25
Profit before taxation 40,831 24,873 64.16 83,087 73,617 12.86
Profit after taxation 32,787 16,127 100.33 61,310 56,360 8.78
Revenue for the quarter and 9 months
period ended 30 September 2016
increased 13.44% and 9.62%
respectively mainly due to higher billing
for both the palm oil engineering and
special purpose vehicles division
Profit after taxation was higher for the
quarter and 9 months period ended 30
September 2016 mainly due to higher
revenue and margin for the special
purpose vehicles division offset by lower
profit margin from the palm oil
engineering division
Latest Quarter Review
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Revenue Breakdown
Profit Before Taxation Breakdown
9 months period ended 30 September 2016 9 months period ended 30 September 2015
Palm Oil Engineering
83%
Special Purpose Vehicles
17%
Palm Oil Engineering
80%
Special Purpose Vehicles
20%
Profit Before Taxation 9 months period ended 30 September % change
2016 2015
(RM’000) (RM’000)
Palm Oil Engineering 64,622 70,112 (7.77)
Oil Palm Plantation (3,345) (3,806) (12.11)
Special Purpose Vehicles 15,211 4,851 213.56
Share of results of associates and jointly-controlled entity 6,599 2,460 168.25
Total 83,087 73,617 12.86
Palm Oil Engineering
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Palm Oil Engineering – Services
One stop centre turnkey contractor
for Modipalm Continuous
Sterilization palm oil mills
Our services and products
encompass the following:
Earthwork/site preparation;
Civil construction;
Mill engineering; and
Supply, installation, testing and
commissioning of machineries
and equipment
Palm Oil
Engineering – Core
Products
Screw Press
Digester Continuous Sterilizer
Palm Oil Engineering
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Palm Oil Engineering - Robust Performance
265,057
341,379 317,621
447,428 428,593
45,234 77,551 81,535 92,286
114,181
17.07%
22.72%
25.67%
20.63%
26.64%
0.00%
5.00%
10.00%
15.00%
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30.00%
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50,000
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450,000
500,000
FY11 FY12 FY13 FY14 FY15
Revenue PBT PBT Margin
PBT margin has grown from 17.07% in
FY11 to 26.64% for FY15
The significant improvement over the
years can be mainly attributable to:
Proven and exclusive technology in
our Modipalm Continuous Sterilization
mills;
Economies of scale;
Declining steel price; and
Improvement in project
implementation
Palm Oil Engineering
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Palm Oil Engineering - Robust Performance
RM’000 Orderbook growth is underpinned by a
backlog of RM493million as at 3Q2016
Despite declining trend in CPO price,
product branding and global recognition
surrounding our Modipalm Continuous
Sterilization palm oil mill have been
sustaining our orderbook
Recurring Clients
71%
New Clients
29%
Recurring Clients
30% New
Clients 70%
Clientele
Expansion
2011 2014
There has been an influx of
new clients, being clients
other than Astra, Wilmar,
Felda, TH Plantations,
Tradewinds and Sime Darby
Notable new clients secured
include Jaya Tiasa, TDM,
Sime Darby, Sinarmas
Group, United Plantations
Bumitama Agri, Ahmad Zaki
and Rimbunan Hijau
478,000
517,000
495,000
477,000
493,000
450,000
460,000
470,000
480,000
490,000
500,000
510,000
520,000
3Q2015 4Q2015 1Q2016 2Q2016 3Q2016
Orderbook
Palm Oil Engineering
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Higher Oil Recovery
Our Modipalm Continuous
Sterilization palm oil mills utilizes
a continuous conveyor chamber
for sterilization process, as
opposed to conventional batch
processing
In conventional batch process, oil
are loss during extraction process
as spillage of oil occurs during
mobilization process for the batch
processing
19.47
20.27 20.4
1919.219.419.619.8
2020.220.420.6
BeforeConversion
Year ofConversion
AfterConversion
Mill 1
18.51 18.89
20.4
17.518
18.519
19.520
20.521
BeforeConversion
Year ofConversion
AfterConversion
Mill 2
Oil Extraction Rate (%)
Oil Extraction Rate (%)
Historical Performance Post
Conversion
Our Modipalm mill also
eliminates the need for
recovery of empty bunch oil,
which are low quality oil with
high wax content
Palm Oil Engineering
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Operator Cost Savings
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200,000
400,000
600,000
800,000
20Tonnes/Hour
30Tonnes/Hour
45Tonnes/Hour
60Tonnes/Hour
Savings (Monthly Wage including OT: RM1000)
Savings (Monthly Wage including OT: RM1500)
Savings (Monthly Wage including OT: RM2000)
Estimated Cost Savings for
Continuous Sterilizer Mills(RM)
Operator requirement for the Continuous
Sterilization mill is minimal
Automation of mill reduces role of operator’s to
supervision only
Performance of mill is not highly dependent on
labour performance
Conventional Mills Continuous
Sterilization Mills
Estimated Operator Requirement (No.)
Mill Size Conventional
Mills
Modipalm Continuous
Sterilization Mills
20 Tonnes/Hour 40 16
30 Tonnes/Hour 45 20
45 Tonnes/Hour 50 24
60 Tonnes/Hour 55 24
Palm Oil Engineering
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Maintenance Cost Savings
Machineries Horizontal sterilizers, cages, tractors,
skid-steer loaders, railway tracks,
cages, transfer carriages, winches,
capstans and mono-rail hoists or
cage tippers
Fresh fruit bunch conditioner
and Continuous Sterilizer
Approximate Annual
Maintenance Cost
Conventional Mills Continuous Sterilization Mills
300,000
400,000
500,000
600,000
150,000 200,000
250,000 300,000
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100,000
200,000
300,000
400,000
500,000
600,000
700,000
20 Tonnes/Hour 30 Tonnes/Hour 45 Tonnes/Hour 60 Tonnes/Hour
Conventional Mills Continuous Sterilizer Mills
Estimated Maintenance
Cost For Machineries
(RM)
Palm Oil Engineering
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Total Cost Savings
A 45 tonnes per hour Continuous
Sterilization mill;
Total operator for mill is 24;
Average monthly wage including overtime
reimbursement is approximately
RM1,500.00; and
Total maintenance cost for the machineries
involved in sterilization process is
approximately RM250,000 per annum
We assume based on the following scenarios:
A 45 tonnes per hour conventional mill;
Total operator for mill is 50;
Average monthly wage including overtime
reimbursement is approximately
RM1,500.00; and
Total maintenance cost for the machineries
involved in sterilization process is
approximately RM500,000 per annum
Conventional Sterilizer Continuous Sterilizer Savings
(RM)
Estimated annual labour cost 900,000 432,000 468,000
Estimated annual
maintenance cost
500,000 250,000 250,000
Total (200,000 MT FFB per annum) 718,000
Cost Savings (RM/FFB) 3.59
Palm Oil Engineering
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Conventional Mills Continuous Sterilization Mills
Eliminates arduous
manual tasks and labour
requirement is strictly for
supervision purposes
Oil spillage is close to non-
existent which allows for a
clean working environment
Non-pressurized and
relatively safe sterilization
process
Zero accident track record
Safety
Palm Oil Engineering
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Quality
Deterioration of bleachability index
(DOBI), is an analytical procedure
intended for quality control of crude
palm oil
Indicates the ease of refining and
predicts its oxidative status
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0.50
1.00
1.50
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3.00
3.50
4.00
DOBI Value
Sludge Oil
Poor
Fair
Good
Excellent
DOBI Performance of Modipalm
Continuous Sterilizer Mills
Environment
Conventional
Mills
Continuous
Sterilization
Mills
Smoke emissions from Continuous
Sterilization mills are generally cleaner as
opposed to intermittent black smokes from
conventional mills
Steam consumption for Continuous
Sterilization mills are also relatively
constant
Palm Oil Engineering
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Our Projects In Malaysia (2008 – Present)
Palm Oil Engineering
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Our Projects In Indonesia (2008 – Present)
Palm Oil Engineering
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Our Projects In Central America/Africa (2008 – Present)
Palm Oil Engineering
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Major Customers and Project References
Continuous Sterilisation
Country Customer No. of
mills
Malaysia/Indonesia Felda Group 13
Wilmar 11
Sime Darby 9
TH Plantations 9
Astra Agro Lestari 8
London Sumatra 5
Tradewinds 4
TDM 3
PT Smart 2
Bumitama 2
Others 20
Subtotal 86
Thailand, Papua New Guinea,
Africa and Central America
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Total Modipalm continuous
sterilisation mills
102
Total conventional mills
41
Grand total
143
Country/Region Market breakdown
Indonesia 45%
Malaysia 40%
Central
America/Africa
15%
Market Breakdown
Special Purpose Vehicles
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Special Purpose Vehicles
A 51% owned subsidiary, our special
purpose vehicles division has grown
from contributing RM57 million in
revenue in 2011 to more than
RM262 million in 2013 and RM152
million in 2014
Focused primarily in bulky supply of
specialised vehicles for government
authorities and agencies
262,054
152,423 123,363 41,139
20,885 25,797
15.70% 13.70%
20.91%
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100,000
150,000
200,000
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FY13 FY14 FY15
Revenue PBT PBT Margin
RM’000
Orderbook for the special purpose vehicles
as at 3Q2016 is RM530 million
RM’000
90,000 35,000 35,000
217,000
530,000
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300,000
400,000
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600,000
3Q20154Q20151Q20162Q20163Q2016
Orderbook
Special Purpose Vehicles
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Special Purpose Vehicles
The special purpose vehicles division is
gradually expanding its products
portfolio, with products ranging from
helicopters, machine gun stabilizers
and military related vehicles
Successfully secured a contract to
supply 2 units of AW189 helicopters for
a total contract amount of RM201
million as at 1Q2016
Sarawak
Kumpulan Kris Jati
Land area: 16,567 ha
Planted: 11,492 ha
Solar Green
Land area: 5,567 ha
Planted: 4,638 ha
Bahtera Bahagia
Land area: 4,269 ha
Planted: 4,214 ha
Plantation and Milling
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Jointly-
controlled entity/
Associate
Total planted
area
Effective
equity
interest
Effective
group
planted
area
(ha) (%) (ha)
Solar Green Sdn
Bhd
4,638 50.0 2,319
Kumpulan Kris
Jati Sdn Bhd
11,492 30.0 3,448
Bahtera Bahagia
Sdn Bhd
4,214 30.0 1,264
Total 20,344 7,031
Effective Group Interest Breakdown
Oil Palm Cultivation – Mature Plantation Assets
Plantation and Milling
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Oil Palm Cultivation – Immature Plantation Assets
We have a greenfield
landbank of approximately
86,000 hectares, mostly
situated in Kalimantan Tengah,
Indonesia, of which 8,877
hectares has been planted as
at 3Q 016
Future planting to be targeted
at approximately 2,000
hectares per year
Registered Office
Further Information
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Registered Office
CB Industrial Product Holding Berhad
Lot 4, Jalan Waja 15
Kawasan Perusahaan Telok Panglima Garang
42500 Telok Panglim Garang
Selangor Darul Ehsan
Telephone No.: 03 3122 2786
Facsimile No.: 03 2122 1336
E-mail: [email protected]
Website: www.cbip.com.my
Contact Person
Lim Zee Yang
Investor Relations & Corporate Affairs
CB Industrial Product Holding Berhad
Telephone No.: 03 3122 2823
Cellphone No.: 012 6303451
Facsimile No.: 03 2122 1336
E-mail: [email protected]
Disclaimer
Certain statements in this presentation are based on historical results which may not be
reflective of future results. Other statements, including without limitation, those regarding
our future prospects, strategies and objectives of our Group, which are forward-looking in
nature, are subject to uncertainties and contingencies. Although we believe that the
expectations reflected in such forward-looking statements are reasonable at this time, there
can be no assurance that such expectations will subsequently materialise. The inclusion in
this presentation should not be regarded as a representation or warranty by our Group or
our management team that the plans and objectives of our Group will be achieved.