Investor Presentation

BATU KAWAN BERHAD
Investor Presentation
30-Jan-2013
Company Background
Batu Kawan Berhad (“BKB”) is an investment holding company with
subsidiaries and associates involved in chemical manufacturing, logistics,
plantations, property investment and investment holding
Incorporated in Malaysia in 1965
Commenced operations as a plantations company when it took over the assets
and liabilities of its predecessor company, Batu Kawan Rubber and Coconuts
Plantations Ltd in 1971
Listed on the Bursa Malaysia Main Market since 12 October 1971
Market capitalisation of RM7.6 billion(1)
(1) Market data as at 29-Jan-2013
BATU KAWAN BERHAD
2
Company Overview
BATU KAWAN BERHAD
Plantations
Kuala Lumpur Kepong Berhad
(46.57% Associate)
Chemicals
• Produce and process palm products and natural
rubber, oleochemical, property development
PT Satu Sembilan Delapan (92%)
• Plantation development in Kalimantan, Indonesia
• 5,728ha landbank – 3,602ha planted
Collingwood Plantations
(18% Investment)
See Sen Chemical
Berhad (61%)
• Sulphuric acid, oleum,
aluminium sulphate,
sodium silicate
Menara KLK
(100%)
• 11-storey
commercial
building in
Mutiara
Damansara,
Petaling Jaya
• Chlor-alkali products,
methyl chloride, ferric
chloride
• 251,325ha landbank – 212,300ha planted
Malay-Sino Chemical
Industries Sdn Bhd
(86%)
Others
Other
investments
• Plantation development in Papua New Guinea
• 44,342ha landbank for oil palm plantations
Note: % denotes BKB’s shareholding percentage
BATU KAWAN BERHAD
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Kuala Lumpur Kepong Berhad
Kuala Lumpur Kepong Berhad (“KLK”) is an 46.57% associate company of
BKB
Primary operations are in the production and processing of palm products
and natural rubber on its plantations located in Peninsular Malaysia, Sabah
and Indonesia
Downstream operations include refineries & fractionation, oleochemicals
Total landbank of 251,325ha
193,230ha planted with oil palm and 19,070ha planted with rubber
Others: Property development, Synthomer plc (19.45%)
Listed on the Bursa Malaysia Main Market since 1974
Market capitalisation of RM23.5 billion (1)
(1) Market data as at 29-Jan-2012
BATU KAWAN BERHAD
4
KLK Financial Summary
Profit Before Tax
Revenue
(RM million)
(RM million)
12,000
10,743
10,570
2,400
2,066
2,000
9,000
7,855
6,658
7,491
1,600
1,445
1,200
6,000
1,560
1,383
887
800
3,000
400
0
0
FY08
FY09
FY10
FY11
FY12
FY08
Return on Equity
25
20
FY10
FY11
FY12
EPS and DPS (Net)
(%)
160
22.2
18.8
FY09
17.0
16.9
120
15
10.9
80
10
(Sen)
148
114
98
95
55
0
65
60
58
40
40
5
85
0
FY08
FY09
BATU KAWAN BERHAD
FY10
FY11
FY12
FY08
FY09
FY10
FY11
FY12
5
PT Satu Sembilan Delapan
PT Satu Sembilan Delapan is BKB’s 92% owned
Indonesian subsidiary involved in oil palm plantation
development in East Kalimantan
Total landbank of 5,728ha – 3,602ha planted
FY2012 results
Revenue:
Operating results:
Profit per average mature area:
RM33.5 million
RM14.9 million
RM4,830 per ha
Oil Palm Planted Area
4,000
(hectare)
3,000
2,000
20
1559
911
515
2537
1,000
0
FFB Yield
14.5
15
16.3
18.4
10
1,868
2,516
3,087
5
844
FY09
(mt/ha)
3.5
0
FY10
Mature
BATU KAWAN BERHAD
FY11
FY12
FY09
FY10
FY11
FY12
Immature
6
Collingwood Plantations
In October 2011, BKB acquired 18% of Collingwood Plantations Pte Ltd
(“CPPL”) along with KLK with a 51% stake
Purchase price for BKB’s 18% stake was RM9.8 million
A wholly-owned CPPL subsidiary owns leases to 44,342 ha of land in
Papua New Guinea which will be developed into oil palm plantations
A long term development leveraging on the overseas plantation
development expertise and resources of KLK
BATU KAWAN BERHAD
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BKB Chemical Group
Malay-Sino Chemical Industries (86%)
(industrial chemical manufacturing)
Malay-Sino Agro-Chemical Products
(industrial chemical manufacturing)
Circular Agency / North-South Transport
(chemical logistics)
See Sen Chemical Berhad (61%)
(industrial chemical manufacturing)
BASF See Sen (30% owned by SSCB*)
(specialty chemical manufacturing)
BKB’s Chemical Group recorded FY2012 revenues of RM294.9 million
and operating profits of RM48.9 million
* BKB’s effective shareholding is 18%
BATU KAWAN BERHAD
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Malay-Sino Chemical Industries
MSCI
is a subsidiary of BKB (86% shareholding)
Incorporated in 1973
Largest producer of chlor-alkali chemical products in
Malaysia
Chlor-alkali products: chlorine, caustic soda (sodium
hydroxide), hydrochloric acid, bleach (sodium hypochlorite)
Other products: ferric chloride, ferric 200M, calcium chloride
Annual
capacity of 87,000 metric tonnes of 100%
caustic soda
MSCI operates 2 chemical manufacturing plants
Location: Lahat (Perak) and Kemaman (Terengganu)
Malay-Sino
Agro-Chemical Products (100% owned
subsidiary of MSCI) is one of the largest methyl chloride
producer in South East Asia
Location: Lahat (Perak)
Vertically integrated with MSCI’s Lahat plant
BATU KAWAN BERHAD
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Logistics
Circular Agency and North-South
Transport (100% owned subsidiaries of
MSCI) provides the BKB Chemical
Group with its own in-house specialist
chemical transporter
Vertically integrated logistics
Circular Agency provides bulk tanker
transportation
North-South Transport provides bulk lorry
transportation
BATU KAWAN BERHAD
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See Sen Chemical Berhad
SSCB is a subsidiary of BKB (61% shareholding)
Incorporated in 1965
Largest producer of sulphuric acid in Malaysia
Annual capacity of 245,000 metric tonnes
sulphuric acid
SSCB operates 2 chemical manufacturing plants
Products: sulphuric acid, oleum, dilute sulphuric acid,
solid and liquid aluminium sulphate, sodium silicate,
liquid sulphur, sulphur powder
Location: Pasir Gudang (Johor) and Kemaman
(Terengganu)
BASF See Sen (30% associate of SSCB)
produces high purity sulphuric acid for the
electronics industry
Location: Kemaman (Terengganu)
Vertically integrated with SSCB’s Kemaman plant
Joint-venture partner is BASF (70%), the world’s
leading chemical company
BATU KAWAN BERHAD
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Menara KLK
Menara KLK is owned by Batu Kawan Holdings Sdn Bhd (100% owned subsidiary)
Completed in March 2009, Menara KLK is a 11-storey commercial office building with a 4storey podium and a 2-level basement car park
Located in Mutiara Damansara, Petaling Jaya next to Tesco, Ikea, The Curve, Ikano
Power Centre and Cineleisure Damansara
Occupancy rate(1) of 95%; KLK is the anchor tenant of the building
FY2012 rental income of RM6.3 million and operating profit of RM3.3 million
Tenants
(1) As at 30-Sep-2012
BATU KAWAN BERHAD
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BKB Financial Summary
Operating Profit
Share of Results of Associates
(RM million)
120
800
103
100
66
55
60
564
485
63
400
471
285
38
200
20
0
0
FY08
FY09
FY10
FY11
FY12
FY08
(RM million)
25
1,000
785
800
20
5
0
0
FY09
FY12
21.2
18.1
18.1
16.3
11.6
10
200
FY08
FY11
(%)
15
351
400
FY10
626
573
523
FY09
Return on Shareholders’ Equity
Profit Before Tax
600
732
600
80
40
(RM million)
FY10
BATU KAWAN BERHAD
FY11
FY12
FY08
FY09
FY10
FY11
FY12
13
Dividends and Shareholders’ Equity
Earnings per Share and Dividends per Share (Net)
(Sen)
200
186.5
150
100
57.9
50
0
145.3
134.2
117.3
FY08
95.0
79.2
65.0
65.0
40.0
FY09
FY10
EPS
FY11
FY12
DPS (Net)
Shareholders’ Equity and Net Assets per Share
(RM billion)
(RM / Share)
4.0
3.5
3.0
2.5
8.8
6.5
6.8
2.8
2.9
7.5
3.7
9.0
10.0
3.8
8.0
6.0
3.1
4.0
2.0
2.0
1.5
1.0
FY08
FY09
FY10
Shareholders' Equity
BATU KAWAN BERHAD
FY11
FY12
0.0
Net Assets per Share
14
BATU KAWAN BERHAD
Thank You