50 th Annual General Meeting. 7 May June 2014

Transcription

1 50 th Annual General Meeting 7 May June

2 Contents Financial Highlights 2 Contribution of Plantation Division 3 Contribution of Healthcare Division 4 Conclusion

3 Challenging but rewarding year 2014 was challenging but still a rewarding year. Our (CPO) production declined by 6%. MPOB s CPO s Price was flat. Profit from Healthcare Division declined by 15%. Despite that, TDM still made very good progress. 3

4 2014 Financial Highlights

5 Financial Highlights (2014) Key Financial Highlights Revenue RM386.1 million Profit Before Tax RM68.4 million Net Assets Per Share RM0.90 Earnings Per Share 3.82 sen 5

6 Group Revenue (RM mil) Annual average = RM339 mil x Annual average = RM184 mil

7 Group Profits (RM mil) Annual average = RM90 mil x Annual average = RM0.3 mil (21) (8) (49) 7

8 Net Assets per Share Annual average = RM0.67 Bonus Issue 2x Annual average = RM Note: Figures are adjusted for share split 8

9 Earnings per Share (EPS) Annual average = 5.37 sen 30x Split + Bonus Issue Annual average = 0.18 sen (0.01) (0.12) (0.02) Note: Figures are adjusted for share split 9

10 Contribution by Plantation Div.

11 Better CPO Pricing 11

12 TDM s better CPO price contributes to better profit YEAR MPOB TDM 2% 2014 RM2,383 RM2,432 0% 3% 2013 RM2,371 RM2,360-1% 12

13 Other Progress by Plantation Div.

14 Growth in the Plantation Size 50,000 45,000 40, Total Planted Area (Ha) ,660 39,034 +1,484 40,518 +3,487 44,005 +1,384 45,389 35,000 32,710 33,222 33,374 30,000 25,000 20,000 15,000 10,000 5, * Included new planted areas from Kalimantan, Indonesia 14

15 Terengganu mill rejuvenation program 2nd Bio-Composting plant KPOM First plant (in STOM) operational since nd is in construction (target operational in Q3 2015) STOM produces 15,000t organic compost, while KPOM will produce 24,000t per annum. 15

16 Terengganu mill rejuvenation program Continuous sterilizer in KPOM and STOM Will reduce cost of processing FFB by about 25% 16

17 Terengganu mill rejuvenation program Bio-Gas Plant in KPOM and STOM Note: This is not an actual picture at our mills 17

18 Rejuvenation of Terengganu Estates (New Replanting 4% p.a.) 1,800 1,600 1,400 1,200 1, Replanting (Ha) A 2012 A 2013 A 2014 F 2015 F 2016 Replanting (Ha) 1,474 1,671 1,103 1,537 1,624 Replacing low yield, old trees with new high-yielding seedlings and high planting density and better irrigation system - to improve oil palm productivity 18

19 Many small innovations: Gerobok 19

20 Many small innovations: NETTING BAG FOR LOOSE FRUIT COLLECTION RAKE AS LOOSE FRUIT COLLECTION TOOL 20

21 Many small innovations: ASSISTED FFB COLLECTION USING BUFFALOES CONCRETE FFB PLATFORM 21

22 Progress on Kalimantan Estates Our estate in Kalimantan 22

23 Planted Area (Inti) 14,000 12,000 11,546 13,281 10,000 8,000 6,000 6,575 8,081 4,000 2,000-1, Planted (Ha) 23

24 Pre-Nursery in Kalimantan Kabupaten Melawi, Kalimantan Barat 24

25 Main Nursery Kabupaten Melawi, Kalimantan Barat 25

26 Kalimantan Estate Immature area Kabupaten Melawi, Kalimantan Barat 26

27 Kalimantan Estate Immature area Kabupaten Melawi, Kalimantan Barat 27

28 Matured Palm Kabupaten Melawi, Kalimantan Barat 28

29 Matured Palm (2014-3,359 mt FFB) Kabupaten Melawi, Kalimantan Barat 29

30 Healthy Production 30

31 Mill Complex under construction Kabupaten Melawi, Kalimantan Barat 31

32 Main Building the mills Kabupaten Melawi, Kalimantan Barat 32

33 Contribution by Healthcare Div.

34 Healthcare Revenue (RM mil) Annual average = RM69.4 mil x Annual average = RM12.0 mil

35 Profits declined by 15% because of expansion Profit RM mil Annual average = RM4.1 mil x Annual average = (RM3.8 mil) (1.1) (1.5) (3.2) (4.1) (4.2) (5.1) (4.9) (0.9) (0.9) (6.9) 35

36 Double capacity by 2017 Hospital Current (Bed No.) Target (Bed No.) Kuantan Medical Centre Kuala Terengganu Specialist Taman Desa Medical Centre Kelana Jaya Medical Centre Total 204 x New Hospital Commencement of new KMC Commencement of new KTS Expansion for TDMCH 36

37 37

38 New KMC in 2015 In operation

39 New KTS, Target Operation in Q

40 Investment for future Rehabilitation of our business requires very high CAPEX. In 2014, this rehabilitation costs us RM30 mil (in term of start-up losses). However, this investment is necessary to provide sustainable growth in the future. Hence, we adopt the approach of balancing dividends investment for growth and cash reserve. 40

41 Group OPEX & CAPEX 2014 Actual 2015 Budget 37% 39% 63% 61% Actual annual spending = RM495 mil Capex Opex Annual Budget = RM890 mil 41

42 Group CAPEX 2014 Actual 17% 35% 48% 2015 Budget 16% 45% 39% RM182 mil RM546 mil Malaysia Kalimantan Healthcare 42

43 Dividends Distribution (2014)

44 Dividend Policy 1. 30% of PATAMI 2. As the business is growing, so should be the dividend 44

45 Recommend 1.5 sen dividend per share (40% of PATAMI) TDM paid RM219 mil in dividends ( ) Dividend (RM'mil) Reinvest for future growth Maiden Dividend

46 Thank you 46