- PETRONAS Dagangan Berhad

PETRONAS DAGANGAN BERHAD
CIMB ASEAN SERIES 2012 : MALAYSIA CORPORATE DAY
5 January 2012
Il
Pearl Room, Mandarin Oriental Hotel,
Kuala Lumpur.
CONTENT
1. Opening Remarks by En Rozaini M Sani,
General Manager of Finance Division
2. Background of the Company
3. Company Performance
4. Key Strategies & Challenges
5. Q&A
Background of the Company
Corporate Profile
• PETRONAS Dagangan Berhad (PDB) is the domestic marketing subsidiary of
Petroliam Nasional Berhad (PETRONAS owns 69.9%).
• Its principal activities are the marketing and distribution of petroleum products
in Malaysia.
• PDB was incorporated on 5 August 1982 and was converted to a public
company on 21 August 1993.
• Shares of the Company were listed on the Main Board of the Bursa Malaysia
Securities Berhad on 8 March 1994.
Milestones
The Beginning…
1970s
1975 - Petronas established the
Domestic Marketing Department
1977 - Market entry : Bunkering at
Pasir Gudang, aviation at Penang and
Senai
1979 - Operate skid tank station due
to diesel crisis
Building the Brand…
1980s-1990s
1981 Operated first service station.
Entered LPG market
1982 Incorporated as PDSB on 5 August
1992 Introduced Natural Gas for vehicles
(NGV)
1993 Converted to a public company on
21 August 1993
1994 Listed on the Kuala Lumpur Stock
Exchange (KLSE)
1996 Station reimaging and Mesra CStore
1999 Introduction of Loyalty Programme
Brand of 1st choice
The new millennium
2000 Launching of Primax & Sprinta 5000
2001 Launching of PDB Customer Service
Centre
2006 Launching of PETRONAS Primax 3
2008 Acquired Lub Dagangan Sdn Bhd
2009 Introduced PETRONAS Urania, PRIMAX
95 and Dynamic Diesel
Introduction of New Mesra Loyalty
Programme
2010 Mesra Shoppe and PETRONAS Cards
Centre opened in KLCC
Launching of PRIMAX 97
(Mesra Card)
Introduced Syntium Moto (March 2010)
6
PDB’s Core Business
PETRONAS
DAGANGAN
BERHAD
Retail
Business
Commercial
Business
LPG
Business
Lube
Business
Supply and Logistics Networks
Perlis
Kedah
Langkawi
Prai
Kertih
Terengganu
Penang
Joint Venture depots and facilities are:
i) MPP KVDT Bulk Depot
ii) Bintulu Bulk Depot
iii) Tawau Bottling Plant and Bulk Depot
Sep. Bay
iv) KLIA Aviation Depot
Sandakan
v) ASB JV for Bunkering facilities
vi) IOTM Senari
Tawau
Labuan
BRUNEI
SABAH
vii) CODT Tg Manis
PENINSULAR
MALAYSIA
Miri
Kuantan
Perak
Bintulu
Lumut
Pahang
SARAWA
K
Sibu
KL/ Selangor
Melaka
Kuching
Johor
Number of terminals
Fuel– 17
LPG – 9
Aviation – 12
TOTAL: 38
10
Business Performance Review For YTD Sept 2011
En Ahmad Kushaini Ramli
Senior Manager, Strategic Planning Division
1. Malaysian Economic
2. Business Performance
3. Key Achievements & Activities
Sustained growth supported by continued strong domestic and
external demand
• According to BNM Governor Tan Sri Dr Zeti Akhtar, the growth in Q3 is expected to be better with improvements
seen in several indicators (e.g; industrial production)
• Malaysia reported an external trade surplus of RM9.6 billion in September 2011. While it grew significantly by
40.5% from the same month last year, on a month-to-month basis, it posted a decline of 12.3% from RM11 billion
due to cooling external demand.
•The Business Sentiment Index (BSI) remains encouraging, having inched up negligible 0.8 points in Q3. It is
likely that consumers are only cautiously optimistic, and even appeared somewhat restrained, as they continue to
watch the economic radar as attentively as, if not more, than before.
Source : CIRU-PETRONAS& BNM
Impressive volume growth despite moderate economics performance
YTD Volume
7,750.0
7,585.3
7,500.0
Mil Litres
7,250.0
7,000.0
6,750.0
6,613.2
6,500.0
14.7 %
6,250.0
6,000.0
SPLY
YTD Sept FY2011
• YTD Sept volume is above SPLY by 14.7% against SPLY.
• Growth in Q2 was mainly contributed by higher Diesel, Aviation, Fuel Oil, and LPG
sales.
RETAIL BUSINESS
Strong YTD Sept FY2011 performance against SPLY
YTD Volume
6000.0
Million Liters
5000.0
4000.0
3000.0
3,232.9
2,995.8
2000.0
7.9%
1000.0
0.0
SPLY
YTD Sept FY2011
YTD Sept FY2011 volume vs SPLY was mainly due to :• Introduction of PRIMAX95 Xtra
• Higher Diesel sales volume mainly from Sarawak & Sabah
regions.
COMMERCIAL BUSINESS
YTD Sept FY2011 volume was higher than SPLY due to
increased demand from all products.
YTD Volume
4,000.0
3,597.5
3,500.0
Million Liters
3,000.0
2,900.0
2,500.0
2,000.0
24.1%
1,500.0
1,000.0
500.0
0.0
SPLY
YTD Sept FY2011
• Higher Diesel & Fuel oil upliftment due to gas curtailment issue
• Strong demand for Jet Fuel supported by MAS/AirAsia and other airlines
• Increased asphalt demand mainly for road construction projects.
LPG BUSINESS
Higher YTD Sept FY2011 volume than SPLY due to higher demand
household cylinder and bulk.
YTD Volume
800.0
706.0
663.5
Million Liters
600.0
400.0
6.4%
200.0
0.0
SPLY
YTD Sept FY2011
• Higher sales from C14kg and bulk
• Increased demand by existing customers
• New customers who had been uplifting from other players now switching to
PETRONAS
LUBRICANTS BUSINESS
Decline performance than SPLY mainly due to customer accounts
restructuring
Million Liters
YTD Volume
55.0
50.0
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
26.9
25.8
-4.0%
SPLY
YTD Sept FY2011
Decreased in YTD Sept FY2011 volume mainly Volume was above SPLY mainly due to customer
accounts restructuring between Direct & LDSB channel starting FY2011.
Positive economic growth outlook for the future.
• Given fragile outlook of the US and Eurozone and with total exports contributing nearly 100% of the
country’s GDP. Malaysia is vulnerable to the recent global turmoil.
• Meanwhile, the implementation of ETP should continue to provide support for growth. PM Najib’s
recently announced a list of 13 new EPPs, which will bring total committed investment to RM 177.1
billion.
• Palaysia has performed well in wooing FDIs in H1 2011, having attracted RM21 billion vis-à-vis RM10
billion in same period last year. The higher inflow mirrored growing investor confidence, stemming from
the government initiatives to stimulate economic growth.
Source : CIRU-PETRONAS & BNM
Key achievement and activities from Sept – Nov FY2011
Achievement
 On 27 Sept 2011, PDB was awarded for 2nd Runner-up for The Best
Shareholders Return by Malaysian Business at the prestigious Prince Hotel &
Residence, Kuala Lumpur.
On 28 Sept 2011, Lumut Fuel Terminal has delivered its 1st ONE BILLION
LITER without LTI
Activities
 28 Oct 2011, Signing Ceremony for Lubricant Supply Contract between PDB
and Boon Siew Honda.
 28 Oct 2011, Grand Opening of our 1st Car Spa Outlet at PSS Jalan Masai.
 On 7 Oct 2011, PETRONAS Dagangan Berhad has invited the Formula One
driver Nico Rosberg, to surprise customers at its PETRONAS Mutiara
Damansara and PETRONAS TTDI stations
 On 1 Oct 2011, PDB Participated in iCapital.biz Bhd's Investor Day at the
Kuala Lumpur Convention Centre
 Sept 2011 PETRONAS Dagangan Berhad (PDB) kick-started the next phase
of the PETRONAS PRIMAX 95 Xtra campaign with the PETRONAS XTRA
Challenge targeting 300 customers nationwide over the three-month period.
Thank you
Financial Performance For YTD Sept 2011
En Rozaini M Sani
General Manager, Finance Services Division
Key Events / Highlights
•
The global economy continued to face a challenging environment due to uncertainties in
financial markets, unfavourable fiscal conditions and weaknesses in labour markets in the
advanced economies .
•
The Malaysian economy registered a higher growth of 5.8% in Quarter 3, 2011 (2Q 11:
4.3%), due to stronger domestic demand.
•
Inflation rate rose to 3.4% on an annual basis in the third quarter (2Q 11: 3.3%).
•
PDB achieved higher average selling prices (18.8%) and sales volume (14.7%) for year to
date 30 September 2011 as compared to same period last year.
•
PDB has announced another interim dividend of 15 sen per ordinary shares less 25% tax
amounting to RM111,763,575 in respect of quarter ended 30 September 2011, bringing the
total interim dividend announced to date to 30 sen per ordinary shares less tax 25%.
Il
Key Financial Highlights
•
YTD 30/09/2011 vs YTD 30/09/2010
30/06/2010
•
As at 30/09/2011 vs As at 31/03/2011
COMPREHENSIVE INCOME
FINANCIAL POSITION
Revenue increased by 35.5% to RM14,844.9
million from RM10,952.8 million
Shareholders funds decreased by 2.6% to
RM4,668.9 million from RM4,794.9 million
Profit Before Tax increased by 29.7% to
RM591.2 million from RM 561.5 million
Cash balances decreased to RM664.5 million
compared to RM1,026.2 million
As at
31/03/2011
As at
30/09/2011
Earnings Per Share (sen)
87.5
87.1*
Return on Revenue (%)
5.2
3.9
Return on Equity (%)
19.1
18.1*
Key Ratios
Return on Total Assets (%)
14.3
13.4*
* Annualised based on year to date figures as at 30 September 2011
Revenue increased mainly as a result of higher average
selling price by 18.0% and higher sales volume by 13.1%
________________________________________________
Revenue
QE 30/09/11
(RM Mil)
+/(%)
QE 30/09/10
(RM Mil)
7,304.9
32.9
5,496.3
QE
30/09/11
QE
30/09/10
Gross Profit increased by 15.6% mainly contributed by the increased in
average margin for Mogas by 19.6% and Bitumen by 98.7%
LPG 36,011
6%
Gross
Profit
QE
30/09/11
(RM Mil)
+/(%)
564.3
15.6
LPG 49,677
10%
QE
30/09/10
(RM Mil)
Lube
27,831 5%
Others
33,838 6%
Fuel Oil 608
0%
Aviation
61,679 11%
Diesel
138,234
25%
488.3
Lube 25,406
5%
QE
30/09/11
Others
12,193 3%
Fuel Oil
5,249 1%
Aviation
49,602 10%
Mogas
211,354 43%
Diesel
134,812 28%
Mogas
266,094
47%
QE
30/09/10
As a result of higher gross profit, PDB managed to record higher
Profit Before Tax despite higher OPEX
Profit Before Taxation
RM Mill'
310
RM Mill'
300.4
350
300
OPEX
301.4
300
284.3
290
Other Income
249.4
250
200
280
150
270
100
260
50
250
0
240
Qtr 2, FY2011
Qtr 2, FY10/11
37.3
45.3
Qtr 2, FY2011
Qtr 2, FY10/11
Shareholder’s funds and cash balance remain strong.
Shareholder’s Funds
RM Million
Cash Balance
RM Million
4,794.9
4,800.0
4,668.9
1200
1,026.5
4,700.0
1000
4,600.0
4,500.0
800
4,400.0
600
664.5
4,300.0
400
4,200.0
Il
200
4,100.0
4,000.0
31/03/2011
30/09/2011
0
31/03/2011
30/09/2011
Decrease in cash balance was mainly due to higher
outstanding subsidy receivables
Cash & Bank Balances
RM’Mill
1,500
1,437
1,350
1,200
1,145
1,015
1,050
1,020
900
875
538
678
621
479
450
0
870
836
666
653
300
1,026
880
826
751
600
1,026
912
863
750
I150
l
1,138
210
271
190
269
267
140
366
299
192
255
147
86
31.03.09 30.06.09 30.09.09 31.12.09 31.03.10 30.06.10 30.09.10 31.12.10 31.03.11 30.06.11 30.09.11
Cash and bank
Deposits
Total
PDB’s share continue to outperform KLCI
performance.
KLCI Index
RM per Share
1700
KLCI
PETDAG
17
1600
16.30
1500
1,422
1400
1,346
12.08
11.30
10.17
1,164
1200
1100
7.20
1000
7.40
7.90
8.35
870
9.27
8.95 8.85
1371.55
14
13
12
11
10
9
8
966
885
6.55
8.90 8.70
16
1518.91
15
1,319
1,173
800
1519.94
1491.25
1485.23
1,249
1300
Il
900
18
17.64
7
6
5
Earnings Per Share (EPS)
Earning Per Share
100
87.5
90
75.8
80
64.5
70
60
87.1*
75.7
66.6
50.8
50
40
30
21.2
Earning Per Share
20
10
Il
FY2004/05 FY2005/06 FY2006/07 FY2007/08 FY2008/09 FY2009/10 FY2010/11
*Annualised based on quarter 2 financial results
PDB P/E
Market PE
FY
2005/06
7.99
13.15
FY
2006/07
9.53
16.07
FY
2007/08
12.01
13.29
FY
2008/09
13.57
13.68
FY
2009/10
11.96
18.86
FY 2011
FY
2010/2011
FY 2011
18.85
16.80
18.71
15.83
PDB’s dividend yield remain higher than market dividend
yield
8.00
6.70
7.00
6.50
6.13
6.00
5.00
5.63
4.64
4.93
5.70
5.00
4.88
4.77
5.02
3.90
4.00
3.90
3.73
3.00
3.99
3.38
3.45
3.36
2.83
2.00
Il
1.00
PDB Dividend Yield - With Special Dividend
PDB Dividend Yield - Without Special Dividend
Market Dividend Yield
0.00
FY2004/05 FY2005/06 FY2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011
PDB Total Shareholder Return as at 30 October 2011
Share Price (RM)
CAGR (with Dividend Reinvestment) – 19.12%
18.00
16.50
Share Price (RM')
16.00
16.30
14.00
On 24.02.05 Bonus
Issue at a ratio 1:1
12.00
9.05
10.00
8.00
7.95
8.00
6.65
6.00
4.00
7.00
6.50
5.13
4.82
4.28
2.80
3.56
4.18
6.15
5.60
4.02
3.65
3.98
2.00
4.06
Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 23 24 Mar Mar Mar Mar Mar Mar Mar Sept
94 95 96 97 98 99 00 01 02 03 04 Feb Feb 05 06 07 08 09 10 11 11
05 05
FY93/94 FY94/95 FY95/96 FY96/97 FY97/98 FY98/99 FY99/00 FY00/01 FY01/02 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY2011
No of Shares
(with Dividend 1,012
Reinvestment)
TSR (%)
1,050
1,067
1,097
1,134
1,1731
1,231
1,300
1,350
2,812
2,887
2,990
3,096
18 years
10 years
5 years
1.5 year
9 months
19.12
26.14
39.14
53.19
57.03
3,225
3,363
3,530
3,594
3,594
3,716
PDB has announced second interim dividend for FY2011
on 23rd November 2011
Sen per share
100
90
80
70
60
50
40
30
20
10
-
Final - Special
Final
Interim - Special
Interim
25
35
15
33
33
10
30
20
15
5
10
5
Il
Dividend Net
(RM)
Net Dividend
excluding special
dividend/ PAT (%)
(Payout)
10
30
12
12
30
15
FY2004/05
FY2005/06
FY2006/07
FY 2007/08
FY 2008/09
FY 2009/10 FY 2010/11
107,293
143,057
216,573
332,907
335,291
447,054
745,090
53%
29%
34%
51%
59%
45%
55%