Investor Presentation 30-Jan-2013 Company Background Batu Kawan - PowerPoint PPT 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 Chemicals Others � Kuala Lumpur Kepong Berhad � Malay-Sino Chemical � Menara KLK (46.57% Associate) Industries Sdn Bhd (100%) (86%) • Produce and process palm products and natural • 11-storey rubber, oleochemical, property development commercial • Chlor-alkali products, building in methyl chloride, ferric • 251,325ha landbank – 212,300ha planted Mutiara chloride Damansara, � PT Satu Sembilan Delapan (92%) Petaling Jaya � See Sen Chemical • Plantation development in Kalimantan, Indonesia Berhad (61%) � Other • 5,728ha landbank – 3,602ha planted • Sulphuric acid, oleum, investments aluminium sulphate, � Collingwood Plantations sodium silicate (18% Investment) • Plantation development in Papua New Guinea • 44,342ha landbank for oil palm plantations Note: % denotes BKB’s shareholding percentage BATU KAWAN BERHAD 3

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 Total landbank of 251,325ha � 193,230ha planted with oil palm and 19,070ha planted with rubber � Downstream operations include refineries & fractionation, oleochemicals � 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 Revenue Profit Before Tax (RM million) (RM million) 2,400 12,000 10,743 10,570 2,066 2,000 9,000 7,855 1,560 7,491 1,445 1,600 1,383 6,658 6,000 1,200 887 800 3,000 400 0 0 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 Return on Equity EPS and DPS (Net) (%) (Sen) 25 160 148 22.2 18.8 20 114 16.9 17.0 120 98 95 15 85 10.9 80 65 60 58 10 55 40 40 5 0 0 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 BATU KAWAN BERHAD 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: RM33.5 million � Operating results: RM14.9 million � Profit per average mature area: RM4,830 per ha � Oil Palm Planted Area FFB Yield (hectare) (mt/ha) 4,000 20 18.4 16.3 515 14.5 3,000 15 911 1559 2537 2,000 10 3,087 2,516 3.5 1,000 5 1,868 844 0 0 FY09 FY10 FY11 FY12 FY09 FY10 FY11 FY12 Mature Immature BATU KAWAN BERHAD 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 7

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 8

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 9

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 10

See Sen Chemical Berhad � SSCB is a subsidiary of BKB (61% shareholding) � Incorporated in 1965 � Largest producer of sulphuric acid in Malaysia � Products: sulphuric acid, oleum, dilute sulphuric acid, solid and liquid aluminium sulphate, sodium silicate, liquid sulphur, sulphur powder � Annual capacity of 245,000 metric tonnes sulphuric acid � SSCB operates 2 chemical manufacturing plants � 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 11

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 4- � storey 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 12

BKB Financial Summary Operating Profit Share of Results of Associates (RM million) (RM million) 120 800 732 103 100 564 600 485 471 80 66 63 55 60 400 285 38 40 200 20 0 0 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 Profit Before Tax Return on Shareholders’ Equity (%) (RM million) 25 1,000 21.2 785 20 18.1 18.1 800 16.3 626 573 15 523 600 11.6 351 10 400 5 200 0 0 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 BATU KAWAN BERHAD 13

Dividends and Shareholders’ Equity Earnings per Share and Dividends per Share (Net) (Sen) 200 186.5 145.3 134.2 150 117.3 95.0 79.2 100 65.0 65.0 57.9 40.0 50 0 FY08 FY09 FY10 FY11 FY12 EPS DPS (Net) Shareholders’ Equity and Net Assets per Share (RM billion) (RM / Share) 9.0 4.0 10.0 8.8 3.5 3.8 7.5 3.7 8.0 6.8 6.5 3.0 3.1 6.0 2.9 2.5 2.8 4.0 2.0 2.0 1.5 1.0 0.0 FY08 FY09 FY10 FY11 FY12 Shareholders' Equity Net Assets per Share BATU KAWAN BERHAD 14

BATU KAWAN BERHAD Thank You