Singapore Non-Deal Roadshow. 18 October 2016

Transcription

1 Singapore Non-Deal Roadshow 18 October 2016

2 DISCLAIMER 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 results. These materials may also contain forward-looking statements that are, by their nature, subject to significant risks and uncertainties. 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 operate in the future, and must be read together with such assumptions. Predictions, projections or forecasts of the economy or economic 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. 2

3 CONTENTS Overview of FGV Five Leadership Principles and Focus Transformation Plan : Building Momentum Outlook : Improving Plantation Operation Sustainability : To Be The Largest Socially Responsible Agribusiness 3

4 OVERVIEW: FGV AT A GLANCE PALM UPSTREAM World s 3 rd largest oil palm operator: 431,000 Ha Operating more than in Malaysia and Indonesia, 71 mills & produce Supported by more than 3 mil MT of CPO annually. SUGAR Malaysia leading refined sugar producer. 65% of domestic market. Annual production of 1.25 mil MT TRADING, MARKETING & LOGISTIC World s largest vegetable oil terminal with 865,000 MT RUBBER 7 Decades of experience in upstream plantation. Approximately 12,000 ha of rubber plantation. PALM DOWNSTREAM Saji The most trusted cooking oil brand in Malaysia. market share through innovating palmbased products. 35% refineries globally 12 including three joint- ventures. R&D and AGRI-SERVICES Yangambi. Award-winning planting material With more than 40% market share at present. 1 st seed producer from Malaysia to export oil palm planting material to Indonesia 4

5 OVERVIEW: FGV S PALM BUSINESS UPSTREAM DOWNSTREAM STRATEGIC ENABLERS & R&D Plantations and Mills Refineries, crushing, Oleochemical and FMCG Trading, Bulking & Logistics R&D Agri Services 409,044 Ha of landbank in Malaysia 22,578 Ha of landbank in Indonesia FFB production of 4.6 mil MT An RSPO member since 2004 with 3 years certification plan 71 palm oil mills Produces more than 3 mil MT of CPO and 750,000 mt of Palm Kernel 7 palm oil refineries in Malaysia 5 kernel crushing plants in Malaysia 2 oleochemical facilities, one in USA & another in Kuantan via JV. Biodiesel facilities in Kuantan FMCG with 16,000 customers & 60 SKUs. Saji brand w 35% M sian market share, fastest growing brand in Myanmar & Philipinnes. JV w P&G, Iffco & local partners in Pakistan & China Global palm oil trading house Veg oil storage with > 850,000 mt capacity Over 450 lorry tankers & cargoes, 7 distribution depot & 2 warehouses > 12,000 Ha oil palm plantation for R&D purposes Award winning Yangambi planting material with 40% market share. Fertiliser production of >700,000 MT 5

6 SHAREHOLDING STRUCTURE As at 30 Aug 2016 FELDA GLOBAL VENTURES HOLDINGS BERHAD 42% 5% 6% 6% 8% 33% Others Pahang State Gov. Kumpulan Wang Persaraan (KWAP) Koperasi Permodalan Felda Lembaga Tabung Haji Federal Land Development (FELDA) RM 2.36 Share Price As at 14 Oct 2016 RM8.58 bil / US$2.04 bil Market Cap. As at 14 Oct % Foreign Shareholding As at 30 Aug

7 FIVE LEADERSHIP PRINCIPLES & FOCUS 1 2 Greater Focus In 3 Key Areas: (1) Upstream (2) Downstream (3) Trading & Marketing Improve Financials, Governance & Processes 3 Form a Stronger, United & Motivated team 4 Go See, ask Why, show Respect 5 Build On what is Working Well 7

8 TRANSFORMATION PLAN: BUILDING MOMENTUM FOCUS Focus on Core Business El Nino Impact on FFB production growth (YoY)* 1Q 16 2Q 16 1H 16-16% -12% -11% -14% -19% -19% -15% -7% -15% -15% -21% -23% -22% -27% IOI FGV GENP KLK SIME * Source: The Edge Malaysia 18 July % PROGRESS Best Argonomic Practices Strong R&D on high yielding planting materials, disease controls. On schedule replanting of 16,000 ha annually and zone level replanting supervision. Adequate, timely fertilizer application as well as good estates water management system. Operational Efficiency Competitive terms for external FFB purchase. Mechanized harvesting, loose fruits collection and estates maintenance. Maximization of by-products income and zero discharge technologies. Closer supervision on estate & mill operations through zone level Assets Rationalisation Mills & plants rationalization for economic of scale and cost containment. Estates realignment around marginal areas, rehabilitation of less performing estates (Increase land utilisation ratio from 85% to 90). Expediting estates infrastructure work to facilitate evacuation. Market Penetration Sales and marketing offices in consumer countries. Production of value added downstream & consumer products. Leveraging on existing JV s & global partners vast international network. 8

9 TRANSFORMATION PLAN: BUILDING MOMENTUM FOCUS PROGRESS Strengthen Financial Position Q admin cost reported lower by 14% QoQ and 12% as compare to Q2 15. Further admin cost saving in Q3 and Q4 to achieve the RM 100 mil target. Admin Cost (Quarterly) Q1 Q2 Q3 Q4 Q1 Q No Merger & Acquisition 9

10 TRANSFORMATION PLAN: BUILDING MOMENTUM FOCUS PROGRESS Disposal of Non- Core / Nonperforming Assets Few non-core assets have been identified to divest and expected to conclude in Q3 or Q4, which will improve our balance sheet. Uneconomical land Environmental Sustainability Recertification plan is on track and we aim to have 16 mill complexes re-certified this year Passport boxes for foreign workers 10

11 BUSINESS OUTLOOK CPO Production CPO Price New Market Penetration Industry estimated Malaysia CPO production at 19 mil MT for Now, projection has reduced to 18.5 mil MT. FGV in a good position for 2H 2016 to take advantage of the tightness in supply. Healthy recovery of our plantations from El-Nino Market tightness for palm oil supply will keep prices firm. Limited supply of Lauric oils in the market, will keep the PK pricing firm. Current plan is to exports RBD Olein, shortening and vegetable ghee to potential markets such as Middle East and Key Asean countries. Recently started exporting shortening to China market in June. 4 5 Labour Sustainability Concerns Re-certify mills Concerned on the smallholders ability to meet stringent sustainability compliance requirements FGV will work with industry representative to request for a solution on the labour issues. We will work towards diversifying our source of labor, improve our labour facilities and engagement. 11

12 WE AIM TO BE THE LARGEST SOCIALLY RESPONSIBLE SUSTAINABLE AGRIBUSINESS LEGACY A world-renown socio-economic programme to improve the lives of 112,635 families and provide land for landless and jobs for the jobless. GOING FORWARD We are a member of RSPO, and are therefore fully committed to its Principles and Criteria. 3-year time bound plan For recertification together with our smallholders. GOING FORWARD PLAN Smallholders / Fruits Mills Refineries TIME BOUND 12

13 THANK YOU