- PETRONAS Dagangan Berhad

PETRONAS DAGANGAN BERHAD
dbAccess Thailand and Malaysia Corporate Days
Thursday, 31 May – Friday, 1 June 2012, London
Il
Deutsche Bank, Winchester House
1 Great Winchester Street
London EC2N 2DB
CONTENT
1. Overview of PETRONAS Dagangan Bhd
2. Financial Review for YTD March 2012
3. Business Performance Review for
YTD March 2012
Financial Performance Review For YTD March 2012
En Rozaini M Sani
Chief Financial Officer
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.
4
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
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
Exchange (KLSE)
1996 Station reimaging and Mesra C-Store
1999 Introduction of Loyalty Programme
(Mesra Card)
2010 Mesra Shoppe and PETRONAS Cards
Centre opened in KLCC
Introduced PRIMAX 97, Syntium Moto, MPlus and NGV Lube
Launch of 950th station at Taman Dagang,
(Nov)
2011 Introduced PETRONAS Nautimar FBO
(Feb)
Launch of PETRONAS PRIMAX 95 Xtra,
replacing PRIMAX 3.
2012 Launched PETRONAS Durance, a range
of high quality car care products that
were developed by its Italy-based sister
company, PETRONAS Lubricants
International (PCI)
Group Structure
PETRONAS
DAGANGAN BHD
Subsidiary
Ownership &
operation of aircraft
refueling system at
KLIA
KAFS SDN BHD
PDB: 65%
MAHB: 20%
MAS: 15%
LUB DAGANGAN
PDB: 100%
Lube
marketing in
non-retail
market
Associate
PS PIPELINE S/B
PDB: 50%
SHELL: 50%
PS TERMINAL S/B
Operation of
MPP/KVDT
Operation of joint
depot &
bottling plant
(TAWAU & BINTULU)
PDB: 50%
SHELL: 50%
IOT MGMT S/B
PDB: 20%
SHELL: 10%
Senari Synergy SB: 70%
Operation of bulk &
LPG terminal
in Kuching
ACDSB
PDB: 20%
SHELL TIMUR :20%
Senari Synergy SB: 60%
Ownership/
Operatorship/
Maintenance of CODT
PDB Organization Structure
MD/CEO
Internal
Audit
Project
Mgmt
Retail
Business
Legal &
Secretariat
Commercial
Business
Corporate
Services
*
PMO – Project Management Office
CMD – Change Management Dept.
LPG
Business
Finance
Services
Lube
Business
*PMO/CMD
Chief Operating
Officer
HRM
Division
Supply &
Distribution
Operation
Performance
Improvement
Strategic
Planning
HSE
Supply and Logistics
Joint Venture depots and facilities are:
i) MPP KVDT Bulk Depot
ii) Bintulu Bulk Depot
iii) Tawau Bottling Plant and Bulk Depot
iv) KLIA Aviation Depot
v) ASB JV for Bunkering facilities
vi) IOTM Senari
vii) CODT Tg Manis
Perlis
Kedah
Langkawi
Sandakan
Kertih
Prai
Labuan
BRUNEI
Terengganu
PENINSULAR
MALAYSIA
Penang
Sep. Bay
SABAH
Miri
Kuantan
Perak
Bintulu
Lumut
Pahang
SARAWAK
Sibu
KL/ Selangor
Melaka
Kuching
Johor
Number of terminals
Fuel– 17
LPG – 9
Aviation – 12
TOTAL: 38
Tawau
Key Events / Highlights
•
The Malaysian economy expanded by 5.2 per cent in the fourth quarter last year, leading to a
growth of 5.1 per cent for the whole year.
•
Oil prices have risen during the quarter from the range of USD 117 to USD 135 per barrel during
the quarter which has positively impact PETRONAS Dagangan Bhd’s (PDB) gross margins.
•
On 28 May 2012, 21 projects worth over RM20 billion announced by the Prime Minister under the
Economic Transformation Programme (ETP).
•
In 2012, private investment is forecast to climb 15.9%, supported by foreign and domestic
investment.
•
PDB achieved higher average selling prices (5.0%) and slight increase in sales volume (1.5%) for the
period ended 31 March 2012 as compared to same period last year.
•
Sales Volume, current period performance is higher than same period last year.
•
PDB has just recently announced first interim dividend of 17.5 cent payable on June 2012 and 45
cent interim dividend for the first quarter 2012 . PDB proposed 35 cent special dividend to be
announced at the Annual General Meeting (AGM) also in June 2012.
Key Financial Highlights
Qtr ended 31/03/2012 vs Qtr ended 31/03/2011
As at 31/03/2012 vs as at 31/12/2011
COMPREHENSIVE INCOME
FINANCIAL POSITION
Revenue increased by 7.4% to RM6,852.8
million from RM6,382.7 million
Shareholders funds increased by 2.8% to
RM4,913.3 million from RM4,778.9 million
Profit Before Tax increased by 7.6% to
RM339.7 million from RM315.6 million
Cash balances increased to RM766.4 million
compared to RM470.2 million
As at
31/12/2011
As at
31/03/2012
Earnings Per Share (sen)
87.9*
99.1*
Return on Revenue (%)
4.0
3.6
18.2*
20.6*
Key Ratios
Return on Equity (%)
Return on Total Assets (%)
12.2*
14.4*
* Annualised based on year to date figures as at 31 March 2012
Consolidated Statement of Comprehensive Income : Qtr ended 31/03/12 vs Qtr
ended 31/03/11
Revenue
Q1 2012
(RM Mil)
+/(%)
Q4 10/11
(RM Mil)
6,852.8
7.4
6,382.7
RM'Mill
3,000.0
Q1 FY2012
2,387.4
2,500.0
2,110.6
2,000.0
1,500.0
Fuel Oil
5%
Q4 FY2010/11
2,243.3
Lube Others
2% 2%
Mogas
31%
1,976.9
Aviation
20%
1,402.2
Diesel
35%
1,240.2
1,000.0
500.0
LPG
5%
341.5
324.7
364.6
115.4
325.7
109.8
147.9
145.3
Mogas Diesel Aviation Fuel Oil
LPG
Lube
Others
Q1
FY2012
Consolidated Statement of Comprehensive Income: Qtr ended 31/03/12 vs Qtr
ended 31/03/11
Gross Profit
Q1 2012
(RM Mil)
+/(%)
Q4 10/11
(RM Mil)
629.4
6.2
592.7
RM' Mill
350.0
300.0
Aviation
5%
Q1 FY2012
294.1
271.7
Q4 FY2010/11
Diesel
31%
250.0
200.0
Fuel Oil
1%
LPG
10%
Lube
4%
Others
2%
196.2
192.4
Mogas
47%
150.0
100.0
63.6
50.0
31.2
22.6
57.3
20.4
3.7
26.5 25.2 14.0
3.1
Mogas Diesel Aviation Fuel Oil LPG
Lube
Others
Q1
FY2012
Profit Before Taxation increased by RM24.2 million from previous corresponding
quarter, due to higher gross profit and other income offset by higher operating
expenditures.
Profit Before Taxation
RM Mill'
OPEX
Other Income
RM Mill'
339.7
328.7
312.0
350.0
340
300.0
330
315.5
250.0
320
200.0
310
150.0
300
100.0
38.7
290
34.6
50.0
280
Qtr Ended
31 March 2012
Qtr Ended
31 March 2011
Quarter Ended
31 March 2012
Quarter Ended
31 March 2011
Profit Before Taxation increased by RM32 million from Qtr Ended 31 Dec 2011.
Profit Before Taxation
RM Mill'
OPEX
Other Income
RM Mill'
339.7
328.7
313.2
350.0
340
300.0
330
250.0
320
307.7
200.0
310
150.0
300
100.0
38.7
290
33.1
50.0
280
Qtr. Ended 31 March
2012
Qtr. Ended 31 Dec.
2011
Qtr Ended 31 March
2012
Qtr. Ended 31 Dec. 2011
Shareholder’s funds improved whilst Cash Balance decreased during the quarter
RM Mill'
Shareholder's Fund
RM Mill'
Cash Balance
1,026.2
5,000.0
766.4
4,913.3
800.0
4,794.9
4,900.0
700.0
4,800.0
600.0
4,700.0
4,600.0
500.0
4,500.0
400.0
4,400.0
300.0
4,300.0
200.0
4,200.0
100.0
4,100.0
4,000.0
31/03/2012
31/03/2011
31/03/2012
31/03/2011
Shareholder’s funds and cash balances improved during the quarter.
RM Mill'
Shareholder's Fund
RM Mill’
Cash Balance
766.4
5,000.0
4,913.3
800.0
4,900.0
4,778.9
700.0
4,800.0
600.0
4,700.0
4,600.0
470.2
500.0
4,500.0
400.0
4,400.0
300.0
4,300.0
200.0
4,200.0
4,100.0
100.0
4,000.0
0.0
31/03/2012
31/12/2011
31/03/2012
31/12/2011
Increase in cash balance was mainly due to reduction in
outstanding subsidy receivables
Cash & Bank Balances
RM' Mill
1600
1,437
Cash & Bank
1400
Deposits
1,020
1,015
1000
875
0
1,026
1,027
870
836
826
766
880
621
751
538
678
666
653
400
200
1,138
912
863
800
600
Total
1,145
1200
470
393
479
271
267
140
210
366
299
269
190
86
147
192
255
277
193
373
PDB’s share move in tandem with KLCI performance.
KLCI Index
RM per Share
1700
19.36
PETDAG vs KLCI
1447.27
16.50
1,361
1,271
15.86
13.50
1,164
1200
12.08
1,048
1,020
10.17
966
1000
882
897
8.55
8.92
8.70 9.05
9.27
16
10.94
14
13
12
11
10
9
8
7
854
6.70
17
15
1,206
800
18.02
1,319
1300
18
1596
1,464
1400
900
1530
1519
1500
1100
19
1520
1600
20
7.35
6
7.90
5
KLCI
PETDAG
Earnings Per Share (EPS)
Earning Per Share
110
100
99.1*
90
87.5
80
75.8
70
66.6
64.5
60
75.7
65.9
Due to shorter 9
months period
50.8
50
40
Earning Per Share
30
Il
FY2005/06
FY2006/07
FY2007/08
FY2008/09
FY2009/10
FY2010/11
FY 2011
FY 2012
*Annualised based on 31 March 2012 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
2010/2011
FY 2011
FY2012
18.85
16.80
20.02
16.44
21.30
16.52
PDB’s dividend yield remain higher than market dividend yield
8.00
6.70
7.00
5.63
6.00
5.00
4.00
4.64
4.93
5.99
5.70
5.42
5.00
4.88
4.77
3.73
6.54
4.25
5.02
4.03
3.58
3.90
3.00
3.38
3.45
3.36
3.43
2.83
2.00
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*
* Annualised based on the total dividend declared for FY2011
FY2012
PDB has announced an interim dividend on 21st May 2012
Sen Per Share
Final - Special
Final
100
Interim - Special
25
90
Interim
80
70
60
35
35
15
50
40
33
30
10
30
33
45
20
30
10
12
17.5
15
12
0
FY 2007/08
Il
Dividend Net
(RM)
Net Dividend
excluding special
dividend/ PAT (%)
(Payout)
FY 2008/09
FY 2009/10
FY 2010/11
FY2011
FY2012
FY 2007/08
FY 2008/09
FY 2009/10
FY 2010/11
FY 2011
FY 2012
332,907
335,291
447,054
745,090
596,072
130,391
51%
59%
45%
55%
51%
54%
PDB Total Shareholder Return as at 31 March 2012
CAGR (with Dividend Reinvestment) – 19.8%
Share Price (RM)
18.94
20.00
18.00
16.50
16.00
On 24.02.05 Bonus
Issue at a ratio 1:1
14.00
12.00
10.00
8.00
4.00
7.00
6.65
4.82
6.00
8.00
4.28
4.18
9.05
6.15
5.13
3.98
4.06
2.80
2.00
0.00
Mar 94
Mar 95
Mar 96
Mar 97
Mar 98
Mar 99
Mar 00
Mar 01
Mar 02
Mar 03
Mar23
04Feb2405FebMar
05 05
Mar 06
Mar 07
Mar 08
Mar 09
Mar 10
Mar 11
Dec 11
Mar 12
Up to FY02/03
No of Shares
(with Dividend Reinvestment)
TSR %
(with Dividend Reinvestment)
FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY 2011 FY2012
*
1,350
1,406
2,887
2,990
3,096
3,225
3,363
3,530
3,691
3,737
3,842
18 years
15 years
10 years
5 years
3 years
2 years
1 year
19.8%
17.0%
25.4%
31.7%
36.8%
44.3%
19.5%
Business Performance Review For YTD March 2012
1. Malaysian Economic
2. Business Performance
3. Business Outlook and Key Focus Area
Although the Malaysian economy is affected by global developments,
domestic demand has continued to support growth, driven by firm
consumption and investment activities
• Private consumption is supported by the employment conditions, income growth with introduction of minimum
wage policy and public sector measures. Investment activities are mainly led by the domestic-oriented industries,
the commodity sector and the public sector.
• Domestic demand is expected to continue to support growth in 2012. Private consumption growth is expected to
decelerate modestly due to BNM‟s prudent measures to rein in credit growth, particularly in the private debt
market as evident in the declining approvals for personal loans, housing loans and car loans.
•Business Confidence Index improved in the early 2012 due to dependent on domestic demand to drive growth
despite the external headwinds.
Source : CIRU-PETRONAS& BNM
Slight volume growth in tandem with moderate economic performance
YTD Volume
4,000.0
3,500.0
3,481.3
3,429.1
Mil Litres
3,000.0
2,500.0
2,000.0
1.5 %
1,500.0
1,000.0
SPLY
YTD March FY2012
• YTD March volume is above SPLY by 1.5% against SPLY.
• Slight growth in Q1 was mainly contributed by higher Diesel, Aviation and Fuel Oil sales.
RETAIL BUSINESS
COMMERCIAL BUSINESS
LPG BUSINESS
LUBRICANTS BUSINESS
Key achievement and activities from Jan – Mar FY2012
Achievement
 8 March 2012, PERODUA signed RM225 million deal with PETRONAS Dagangan
Bhd
22 March 2012, Malaysian Largest Haulage Service Provider, Konsortium Logistik
Berhad (KLB) Signs with PETRONAS Dagangan Berhad for Five Years Exclusive
Supply of Synthetic Engine Oil
Activities
 1 Jan 2012, successfully opened 4 new business partners‟ outlets with our PSS.
And they are – Subway at PSS NKVE, McDonald‟s Restaurant and Maybank
FOREX at PSS Batu Feringghi, and Dunkin Donut‟s Cafe at PSS Seremban-Kuala
Lumpur (north bound).
 5 Jan 2012, PDB Participates in CIMB Asean Series 2012: Malaysia Corporate
Day.
 12 Jan 2012, PETRONAS Dagangan Berhad Joins in Welcoming the Emirates
A380 to KLIA
 10 March 2012, launched PETRONAS Durance, a range of high quality car care
products along with the car air freshener series that were developed by its Italybased sister company, PETRONAS Lubricants International (PLI).
 13 March 2012, Central 2 with the tagline “Do Different Gain XTRA” have come
upon with a comprehensive training programme called „Cabaran Krew PETRONAS‟
to create excellent customer service.
Positive economic growth outlook for May 2012
• Private consumption is supported by the employment conditions, income growth with introduction of
minimum wage policy and public sector measures.
• Investment activities are mainly led by the domestic-oriented industries, the commodity sector and the
public sector.
•We expect FDIs to continue its growth due to the implementation of the ETP projects. Large-scale
projects, such as the US$11.7 billion Kuala Lumpur Mass Rapid Transit System are likely to contribute
positively to the financial account.
Source : CIRU-PETRONAS & BNM
Key Focus Area
• Retail Business
• Achieving market leadership
• Increasing throughput volume
• Opening new stations
• Commercial Business
• Maintain and strengthen market
leadership
• Focus on primary target market
and quality customers
• LPG Business
• Maintain market leadership
• Improve
on
product
network
availability and customer service
• Lube Business
• Aggressive market penetration
• Expand product range to include
fighting brand
Thank you