- PETRONAS Dagangan Berhad

PETRONAS DAGANGAN BERHAD
YTD MARCH FY2012 ANALYST BRIEFING
4 June 2012
Il
Dahlia Room, Intercontinental Hotel,
Jalan Ampang, Kuala Lumpur.
CONTENT
1. Opening Remarks
2. Business Performance Review for YTD
March 2012
3. Financial Review for YTD March 2012
4. Special Features
5. Q&A
Business Performance Review For YTD March 2012
En Ahmad Kushaini Ramli
Senior Manager, Strategic Planning Division
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
Financial Performance Review For YTD March 2012
En Rozaini M Sani
General Manager/Chief Financial Officer,
Finance Services Division
Key Events / Highlights
•
Bio-diesel use to go nationwide by 2014, delayed from initially planned.
•
Cost rationalisation among aviation companies will potentially impact aviation fuel
business.
•
As the gas supply situation improved, TNB was relying less on diesel and fuel oil to
supplement its fuel requirements.
•
Commercial volume had been impacted as a result of removal of Nanotag.
•
The Malaysian economy expanded by 5.2% in the fourth quarter last year, leading to a
growth of 5.1% for the whole year.
•
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.
Key Financial Highlights
•
PE 31/03/2012 vs PE 31/03/2011
30/09/2010 30/06/2010
•
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 : Q1 31/03/12 vs Q4 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
Fuel Oil
5%
Q4 FY2010/11
2,110.6
Aviation
20%
1,976.9
1,500.0
1,000.0
500.0
Lube Others
2% 2%
Mogas
31%
2,243.3
2,000.0
LPG
5%
1,402.2
Diesel
35%
1,240.2
341.5 364.6
324.7
115.4 147.9
325.7 109.8 145.3
Mogas Diesel Aviation Fuel Oil
LPG
Lube
Others
Q1
FY2012
Consolidated Statement of Comprehensive Income: Q1 31/03/12 vs Q4 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
Q4 FY2010/11
250.0
200.0
Diesel
31%
271.7
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
20.4
3.7
26.5
57.3
25.2
14.0
3.1
Mogas Diesel Aviation Fuel Oil LPG
Lube
Others
Q1
FY2012
Profit Before Taxation increased by RM24.2 million, 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
290
38.7
34.6
PE 31 March 2012
PE 31 March 2011
50.0
280
PE 31 March 2012 PE 31 March 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
64.5
60
75.7
66.6
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
14.00
On 24.02.05 Bonus
Issue at a ratio 1:1
12.00
10.00
7.00
6.65
8.00
4.82
6.00
8.00
4.28
4.18
5.13
6.15
3.98
4.00 2.80
9.05
4.06
2.00
0.00
Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 23 24 Mar Mar Mar Mar Mar Mar Mar Dec Mar
94 95 96 97 98 99 00 01 02 03 04 Feb Feb 05 06 07 08 09 10 11 11 12
05 05
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%
Thank you
Regional Growth Opportunities
En Aminul Rashid M Zamzam
Chief Operating Officer
PETRONAS Dagangan Berhad
CONTENT
1. Detail of Assets
2. Acquisition Rationale
3. Company & Industry Outlook
Detail of Assets
The Acquisitions
Regional Reach Through Established PETRONAS Footprint
LPG
Lubricants
LPG
PETRONAS Energy Philippines, Inc.
(“PEPI”)
PETRONAS (Vietnam) Co. Ltd. (“PVL”)
Vendor
PPI
Vendor
PICL
Purchase consideration
USD47.5m
Purchase consideration
USD1.00
Philippines
Land-holding
Thailand
Vietnam
Duta, Inc. (“Duta”) (40% equity interest)
Vendor
Thang Long LPG Co. Ltd. (“TLLCL”)
PPI
Purchase consideration
USD2.0m
LPG (bottling services)
Malaysia
Malaysia
Vendor
PICL
Purchase consideration
USD2.0m
Lubricants
Aviation Fuel
PETRONAS International Marketing
(Thailand) Co. Ltd. (“PIMTCL”)
PETRONAS Aviation Sdn. Bhd. (“PAV”)
Vendor
PMTL
Vendor
PETRONAS
Purchase consideration
USD8.5m
Purchase consideration
USD2.0m
Note: Combined purchase consideration of USD62m arrived on debt free cash free basis with exception of PVL
The Philippines - PETRONAS Energy Philippines, Inc. (“PEPI”)
Overview
Lubricants
LPG
• Started operations in July 1997.
ILOILO PLANT
• Storage, distribution & marketing of
liquefied petroleum gas (LPG) with volume
of 73.9KMT in 2011.
500 MT Storage
Capacity
• Markets in the household, commercial,
industrial, autogas & wholesale sector for LPG.
Terminal & Refilling
Facility
LUZON
• Manila
• 60 autogas stations.
• Entered lubricant business in 2011 with
550KL volume.
• Current market focus in Visayas and
Mindanao (VisMin).
• Market Share:
• Overall nationwide LPG market share of
6.2% in 2011.
• No 2 player in VisMin with 28.1%.
market share behind Petron‟s 38.6% in 2011.
• Foothold in Luzon (15.5KMT) in 2011.
• Storage, bottling facilities and terminals in
Illigan, Davao, Danao and Iloilo.
Assets
• 4 LPG plants with total storage capacity of 3,436
MT.
DANAO PLANT
816 MT Storage
Capacity
ILIGAN PLANT
VISAYAS
2000 MT Storage
Capacity
Terminal & Refilling
Facility
Terminal & Refilling
Facility
• Cebu City
MINDANAO
• Davao City
DAVAO PLANT
120 MT Storage
Capacity
Refilling facility
Vietnam - PETRONAS (Vietnam) Co. Ltd. (“PVL”) and
Thang Long LPG Co. Ltd. (“TLLCL”)
LPG
Overview
• PVL started operations in 2005.
• TLLCL was set up in 1995 as a JV company
between PETRONAS and Petro Vietnam Gas
(“PV Gas”). In 2009, PETRONAS increased
its equity in TLLCL to 100%.
Ha Noi
HAI PONG PLANT (TLLCL)
1,200 MT Storage Capacity
Terminal & Refilling Facility
• PVL does bottling & marketing of LPG in
Vietnam with volume of 80.8 KMT in
2011, supported by TLLCL for storage &
terminal facilities for LPG in Northern Vietnam.
• Vietnam LPG market share of 5.6% in
2011, ranks 3rd behind PVGas (25%)
and Petrolimex (12%).
VIETNAM
• LPG facility in Go Dau (PVL) and Hai Pong
(TLLCL) provinces.
GO DAU PLANT (PVL)
3,200 MT Storage Capacity
Assets
Terminal & Refilling Facility
• 1 LPG plant in Go Dau (PVL) with total
storage capacity of 3,200 MT and 1 LPG plant in
Hai Pong (TLLCL) with total storage capacity
of 1,200 MT.
Ho Chi Minh City
Thailand - PETRONAS International
Marketing (Thailand) Co. Ltd.
(“PIMTCL”)
Malaysia - PETRONAS Aviation
Sdn. Bhd. (“PAVSB”)
Lubricants
Aviation Fuel
Overview
• PIMTCL was incorporated in 2012 to house
the lubricant business of PETRONAS Retail
(Thailand) Co. Ltd. (“PRTCL”)
• PRTCL started lubricant business in January
2006.
Overview
• Started operations in 2008.
• Currently supplies aviation fuel to MAS,
Royal Brunei Airlines, Firefly, Pakistan Airlines,
British Airlines and EVA with total volume of
37.6 million liters in 2011.
• Local blending arrangements with established
network of lubricant dealers.
• Supply aviation fuel at Hong Kong, Bangkok,
Singapore, Colombo and Banda Acheh
international airports.
• Good footing in lubricants business with 1%
market share and volume of 7.3 million liters in
2011.
• Ability to undertake multi-locality aviation fuel
supply contracts
• Implementation of Euro IV in 2012 will see
demand for high grade synthetic lubricants.
• Technical and operational capabilities that are
complementary to PDB‟s aviation business
PIMTCL
Lubricants Business
Assets
• 1 lubricant warehouse
PETRONAS AVIATION
Aviation fuel supply & related
technical services
Acquisition Rationale
Next Growth Phase – Regional Expansion
Next growth phase
The Brand of
1st
Choice
The Company of 1st Choice
Creating Edge
Strengthen and solidify market leadership
position domestically, especially in Retail
and Lubricant businesses.
Strengthening
Transforming
Restructuring
Co.
Inc.
Co.
Listed
„82
„94
„98
FY2000/2001
Profit attributable to s/holders
of the company: RM389.5 m
Dividends: RM53.7m
„99
„02
FY2011
Profit attributable to s/holders
of the company: RM654.5 m
Dividends: RM670.6m
Regional
Expansion
Laying the foundation for
the next phase of growth
„07
„11
Established capabilities & financial strength to capitalise on market opportunities in the region
 Largest marketer of petroleum
products in Malaysia
 Access to R&D capabilities
 Half of Malaysia‟s LPG market
 Extensive supply & distribution
network
 Quarter of Malaysia‟s lubricants
markets
 Growing brand visibility
internationally
 Established presence in
aviation fuels, bunker fuels, etc
 Strong financial position &
experienced management
Assessment on market attractiveness – established
presence & value-creation opportunities
LPG 2011 (m liters & market share)
2,500
PHILLIPINES
VIETNAM
2,365
60%
2,184
2,000
54.2%
1,500
1,281
mil liters
THAILAND
70%
2,669
50%
40%
30%
1,000
6.2%
136
500
5.6%
20%
149
10%
-
MALAYSIA
market share %
3,000
0%
Malaysia
Philippines
Vietnam
Industry
PDB
Market Share
Lubricants 2011 (m liters & market share)
Lubricants
Aviation
30%
538
24.8%
500
25%
400
20%
300
269
15%
214
200
100
10%
53
1.0%
1
1.0%
-
0%
Malaysia
Philippines
Thailand
Industry
PDB
Market Share
LPG market in Philippines & Vietnam combined ~2x Malaysia
Lubricants market in Thailand & Philippines combined ~4x Malaysia
Source: FGE
5%
7
market share %
LPG
mil liters
600
Company and Industry Outlook
Philippines
LPG industry
• Demand exceeds 800 KMT p.a.; population dynamics to drive growth (est. 3.4%+ LPG growth from 2012 to 2020)
• Two-thirds of supply is imported – continued opportunities for international LPG companies
• PEPI has an established market presence:
 No. 2 in Visayas & Mindanao (VisMin) region; largest foreign LPG distributor in VisMin
 Market share in VisMin doubled in the last 7 years from 13% (2004) to 27% (2011)
 Overall nationwide market share exceeds 6% (2011)
 80% of market is in Luzon – area of opportunity
Lubricants industry
• Market size: ~260 million liters in 2011; top 3 players (Shell, Petron, Chevron) collectively hold 77% market share
• PEPI entered this market in 2011 (~550 k liters); growth opportunity from low base
SEAsia: Median age (yrs) & Population Growth
Population
Growth %
50
45
40
35
30
25
Median Age 20
15
10
5
0
1.9
1.7
1.0
1.1
0.5
34
27
28
0.9
1.1
37
38
LPG Industry Market Share 2011
Total
7.6%
0.6
Others
3.4%
40
Petron
37.5%
28
23
Source: FGE, Department of Statistics Malaysia, Euromonitor, CIA
Liquigaz
27.8%
PEPI
6.2%
Shell
17.5%
Vietnam
LPG industry
• Market size: 1.4 million MT p.a. (2011) – continue to be net importer of LPG.
• Consumer shift towards LPG (6.9% CAGR from 2005 to 2011) from traditional sources of burning
• Strategic shift - focus on the higher margin cylinder segment
LPG Industry Market Share (2010)
50
Saigon Petr
5%
PV Gas
25%
Hong Ha
2%
Van Loc
2%
Petrolimex
12%
Others
36%
41.6
40
36.7
43.7
39
35
27.8
30
25
20
15
10
9.7
5
Total
4%
Source: PFC Energy, FGE 2012
45
Vietnam LPG Demand (kb/d)
PVL
8%
LPG Market Demand (kb/d)
AnPha
6%
0
2000
2005
2009
2010
2011
2012F
Thailand
Lubricants industry
• Market size: 538 million liters (2011)
• 15th largest lubricants market in the world and 2nd largest lubricant market in SEA (2.5x Malaysia‟s
lubricant market)
• Implementation of EURO IV in 2012 – demand for high grade synthetic lubricants
• Established footing, with 7 million liters in 2011 (approx. 1% market share)
Lubricants Market Share (2011 est.)
Lubricants Market Demand (m liters)
Nippon Oil
4%
Bangchak
4%
PTT
26%
ExxonMobil
8%
Chevron
9%
Lubricants Demand (mil liters)
600
IRPC Total Petronas
2% 1%
1%
508
523
538
555
517
216
200
212
225
239
301
308
311
313
316
2008
2009
2010
2011
2012F
500
400
300
200
100
-
Idemitsu
10%
Shell
21%
BP
14%
Source: FGE, Global Lubricants Service, Department of Statistics Malaysia, Euromonitor, CIA
Transport lubricants
Other lubricants
Malaysia
• International airline passengers are expected to rise from 952 million in 2009 to 1.3 billion passengers in
2014, reflecting a CAGR of 5.9%.
• The fastest growing markets for international air passenger traffic will be China (10.8%), the United Arab
Emirates (10.2%), Vietnam (10.2%), Malaysia (10.1%) and Sri Lanka (9.5%).
• The aviation industry forecasted to remain resilient despite being tested with unprecedented events in
the past decade.
Outlook
•
Considerable growth opportunities from regional LPG, lubricants and aviation markets
•
•
Prospects
Future
Direction
Philippines and Vietnam‟s combined LPG market 2x Malaysia‟s
Philippines and Thailand‟s combined lubricants market 4x Malaysia‟s
•
Financial strength to undertake regional expansion
•
Strong supply and logistics network to achieve synergies and optimise costs
•
Large base volume domestically that can be leveraged with scale benefits extended to the region
•
Established business capabilities for e.g. marketing, sales, dealer management and project
engineering that can be leveraged by regional companies
•
Potential for shared services
•
PDB intends to incubate, nurture and strengthen these companies in the preliminary years postacquisition
•
PDB will undertake targeted investments to ensure a strong foundation to propel future growth.
•
Focus Post-Merger Integration implementation to ensure effective integration of PEPI, PVL,
PIMTCL and PAV with PDB to deliver the overall synergistic value.
•
Strengthen market leadership position domestically, particularly in retail and lubricant businesses
Data Source: FACTS Global Energy Asia Pacific (Spring 2012), PFC Energy Global Lubricants Service (May 2012), International Air Transport Association (February 2011 and
March 2012).
Thank you