IJM Corporation Berhad · MYX:IJM
IJM Corporation Berhad — Shareholder Meeting (August 2019)
48 slides from IJM Corporation Berhad's shareholder meeting presentation, Aug 28, 2019
Slide 1: 35th Annual General Meeting
35th Annual General Meeting Review of Group Performance & Prospects Financial Year Ended 31 March 2019 Dato’ Soam Heng Choon, CEO & Managing Director IJM Corporation Berhad 1
Slide 2: Content
CONTENT 1. FY2019 Group Performance 2. Core Business Performance a. Construction b. Property c. Industry d. Infrastructure e. Plantation 3. Conclusion 2
Slide 3: FY2019 Group Performance
ASS ——— FY2019 Group Performance i! = rt eee —-
Slide 4: Group Income Statement
GROUP INCOME STATEMENT FY2019 FY2018 (Restated) %∆ Revenue 5,655.7 5,965.6 (5.2) EBITDA 1,221.9 1,158.4 5.5 Operating profit 745.4 797.8 Finance cost (225.1) (185.7) Operating profit after finance cost 520.3 612.1 Share of results from JV & associates 127.7 (1.0) Profit before tax 648.0 611.1 6.0 Ta
Slide 5: FY2019 Group Balance Sheet
FY2019 GROUP BALANCE SHEET 31-Mar-19 31-Mar-18 RM mil (Restated) Share capital 6,099.4 6,074.3 Shareholders’ funds 9,538.7 9,346.5 Total assets 23,006.0 21,233.3 Net assets per share (RM) 2.63 2.58 Total cash 1,557.9 1,467.7 Total borrowings 6,662.1 5,914.0 Net cash / debt* (5,104.2) (4,446.3) Net d
Slide 6: FY2019 Group Revenue by Division
FY2019 GROUP REVENUE BY DIVISION RM mil 2,676 FY2019 FY2018 2,800 2,400 2,325 2,000 1,600 1,482 1,260 1,200 1,057 886 943 1,002 747 800 631 400 1 3 0 Construction Property Industry Infrastructure Plantations Others Infrastructure Plantation Plantation 15% 10% Infrastructure 10% 15% Industry 14% FY20
Slide 7: FY2019 Group PBT by Division
FY2019 GROUP PBT BY DIVISION FY2019 FY2018 RM mil 300 268 250 221 202 200 174 150 121 123 100 82 59 51 50 13 0 Construction Property Industry Infrastructure Plantation Others -50 -43 -12 Infrastructure 38% Infrastructure 8% 2% Others 20% FY2019 FY2018 25% Construction 36% Construction RM648m Industr
Slide 8: Core Business Performance: Construction
Core Business Performance: Construction 8 The Starling, Damansara Uptown
Slide 9: Construction Snapshot
CONSTRUCTION SNAPSHOT RM mil FY2019 FY2018 %∆ (Restated) Revenue 2,325.4 2,676.1 (13.1) EBITDA 267.2 289.7 (7.8) Profit before tax 174.4 221.2 21.2) PBT % 7.5 8.3 Comments FY2019 revenue declined as newer projects have yet to reach optimal construction phase For FY2019, PBT declined following lo
Slide 10: Order Book Provides 3 Years Earnings Visibility
ORDER BOOK PROVIDES 3 YEARS EARNINGS VISIBILITY 100% 80% 34% Major FY19 Contracts Awarded September 2018 60% 18% 47-storey Affin Bank Berhad Office Building at TRX 40% Contract Value: RM505m 48% 20% 0% Roads Other Infra Buildings RM6.7bn Order Book 10
Slide 11: WCE Section 3, 4 and 5
WCE SECTION 3, 4 AND 5 Section 3 – Bridge at SAE Interchange Section 5 – Bridge at Jalan Sg. Puloh, Klang Section 4 – Shahpadu Highway to Port Klang Progress Photo Aug 2019 11
Slide 12: WCE Section 8, 9 and 10
WCE SECTION 8, 9 AND 10 Section 9 – Changkat Cermin Section 8 – Night view after the opening of the highway on the 31 May 2019 Section 10 – Rock blasting and stabilisation work Progress Photo Aug 2019 12
Slide 13: MRT 2, Jinjang to Jalan Ipoh
MRT 2, JINJANG TO JALAN IPOH Progress Photo Aug 2019 Long span launching at Kampung Batu Kampung Batu Station roofing works Top view from viaduct at Kampung Batu 13Ipoh Installing noise barrier at Jalan
Slide 14: IJM Building Projects in Kuala Lumpur
IJM BUILDING PROJECTS IN KUALA LUMPUR IJM Projects in KL City Centre 14
Slide 15: Affin Bank New Corporate Headquarters, TRX, Kuala Lumpur
AFFIN BANK NEW CORPORATE HEADQUARTERS, TRX, KUALA LUMPUR Progress Photo - Aug 2019 Construction at level 13 15
Slide 16: UOB Tower 2, Kuala Lumpur
UOB TOWER 2, KUALA LUMPUR Progress Construction Photo Aug at 2019 level 3 Construction at level 3 16
Slide 17: Bukit Bintang City Centre Retail Mall, Kuala Lumpur
BUKIT BINTANG CITY CENTRE RETAIL MALL, KUALA LUMPUR Progress Photo – Aug 2019 Construction at level 6 17
Slide 18: Menara Prudential, Kuala Lumpur
MENARA PRUDENTIAL, KUALA LUMPUR Handed Over on 8 May 2019 18
Slide 19: Equatorial Plaza, Kuala Lumpur
EQUATORIAL PLAZA, KUALA LUMPUR 19
Slide 20: Chilkaluripet - Vijayawada, Andra Pradesh India
CHILKALURIPET - VIJAYAWADA, ANDRA PRADESH INDIA 20
Slide 21: Dewas Bypass, Madhya Pradesh, India
DEWAS BYPASS, MADHYA PRADESH, INDIA 21
Slide 22: Property Snapshot
PROPERTY SNAPSHOT RM mil FY2019 FY2018 %∆ (Restated) Revenue 1,482.0 1,260.5 17.6 EBITDA 228.5 146.6 55.9 Profit before tax 202.0 120.7 67.4 PBT % 13.6 9.6 Comments The revenue and PBT for FY2019 was higher as compared to the preceding year. The improved financial results were mainly due to the hi
Slide 23: Property Sales Achieved
PROPERTY SALES ACHIEVED Central Region Northern Region Southern Region Eastern Region 1,800 RM1.6bn RM1.6bn 1,600 2% 4% RM1.4bn RM1.4bn 9% 9% Demand for mid-range products 1,400 2% 3% 9% remains healthy although stringent 3% 14% 20% end-financing criteria imposed by 1,200 15% banks are still in pl
Slide 24: Royal Mint Gardens, London
ROYAL MINT GARDENS, LONDON Progress Photo – Aug 2019 24
Slide 25: Recent Property Launches
RECENT PROPERTY LAUNCHES Swans (Parcel 2), Bandar Rimbayu, Kota Kemuning Austin Duta (Phase 10A), Johor Bahru Total - 111 units Build-up - 22 x 70 Total - 123 units Price - RM863k onwards Build-up - 22 x 70 Launched - Aug 2019 Price – RM604k onwards Launched – May 2019 Rimbun Alam (Phase 3J), Seremb
Slide 26: Upcoming Property Launches
UPCOMING PROPERTY LAUNCHES The Terraces, Starling, Bukit Jambul, Penang Bandar Rimbun Alam, Seremban 2 Rimbayu, Kota Kemuning Total: 680 units Build-up : 20 x 60 sqft Price: RM653k onwards Target launch: Dec 2019 Austin Duta (Phase 10B), Total: 410 units Johor Bahru Build-up : 925 & 950 sqft Price:
Slide 27: Core Business Performance: Industry
Core Business Performance: Industry ICP Piles with Special Shoes for New Deep Water Terminal, Kuantan Port 27
Slide 28: Industry Snapshot
INDUSTRY SNAPSHOT RM mil FY2019 FY2018 %∆ (Restated) Revenue 886.4 1,057.1 (16.2) EBITDA 114.7 137.0 (16.2) Profit before tax 60.0 82.5 (28.5) PBT % 6.8 7.8 Comments Revenue and PBT for FY2019 was lower respectively compared to the previous year’s corresponding period. These were mainly due to low
Slide 29: Capacity & Locations
CAPACITY & LOCATIONS Capacity 10 Pile Factories 2.4m tonnes p.a 9 Quarries 10m tonnes p.a 3 Ready Mixed Concrete Jelutong Junjung 540k cubic meter p.a Jawi Ipoh 2 DURABON Factories 54k tonnes p.a Lumut Kuantan 1 Sand Mining Plant Bestari Jaya Bestari Jaya Kuantan Kuala Lumpur Kuang 1 IBS Factory Lab
Slide 30: Piles Supplied to Various Projects
PILES SUPPLIED TO VARIOUS PROJECTS Fernvale Woods at Sengkang West Avenue, Singapore IKEA Batu Kawan, Penang KDU College Batu Kawan, Penang Trinity Aquata, Kuala Lumpur 30
Slide 31: Core Business Performance: Infrastructure
Core Business Performance: Infrastructure 31 Kuantan Port, Pahang
Slide 32: Infrastructure Snapshot
INFRASTRUCTURE SNAPSHOT RM mil FY2019 FY2018 %∆ (Restated) Revenue 943.4 1,001.9 (5.8) EBITDA 504.8 353.2 42.9 Profit before tax 268.3 122.8 118.5 Comments The higher contributions from the Group’s local tolls and port concessions as well as toll concession investment in Argentina increased the PB
Slide 33: Concession Assets Portfolio
CONCESSION ASSETS PORTFOLIO 33
Slide 34: Existing Kuantan Port and NDWT
EXISTING KUANTAN PORT AND NDWT 34
Slide 35: New Deep Water Terminal
NEW DEEP WATER TERMINAL 35
Slide 36: NDWT Overview
NDWT OVERVIEW Conveyor Belt Capacity = 4000 ton/hour Ship Unloader 2 units Grab Type Capacity = 2000 ton/hour 36
Slide 37: Conveyor Belt
CONVEYOR BELT (am, s Riess — 37
Slide 38: Malaysia-China Kuantan Industrial Park
MALAYSIA-CHINA KUANTAN INDUSTRIAL PARK 1 2&3 Malaysia Consortium China Consortium IJM Land Guangxi Beibu 51% 49% 60% 40% IJM Land 40% Guangxi Beibu 95% Sime Darby 30% Qinzhou Investment 5% Pahang State 30% 1,000 acres 1,200 acres 1,300 acres Total = 3,500 acres 38
Slide 39: MCKIP 1 – 1st Investment Project is Operational
MCKIP 1 – 1ST INVESTMENT PROJECT IS OPERATIONAL Alliance Steel - Photo as at Aug 2019 39
Slide 40: Investors in MCKIP & Kuantan Port
INVESTORS IN MCKIP & KUANTAN PORT No. Industries 1. Steel & metal 2. Production of passenger car radial (“PCR”) & truck and bus radial (“TBR”) tyres 3. Clay porcelain, tableware & ceramic manufacturing 4. Aluminium components processing 5. Potash fertilizer manufacturing 6. Battery manufacturing (le
Slide 41: MCKIP 3 Site Progress
MCKIP 3 SITE PROGRESS Operation commenced on 13 Aug 2019 ICP Precast Products Spun Pile Manufacturing Target operation in Oct 2019 Camel Power (M) Battery Manufacturing Photos as at Aug 2019 41
Slide 42: Core Business Performance: Plantation
Core Business Performance: Plantation Sijas Estate, Sabah 42
Slide 43: Plantation Snapshot
PLANTATION SNAPSHOT RM mil FY2019 FY2018 %∆ (Restated) Revenue 630.9 747.2 (15.6) EBITDA 119.0 218.9 (45.6) Profit before tax (43.3) 50.8 (285.2) PBT % - 6.8 *CPO Price 2,125 2,639 *Average CPO Price Per Tonne for Malaysian operations Comments Revenue for the FY2019 decreased mainly due to lower c
Slide 44: Operations Profile
OPERATIONS PROFILE Sabah Kalimantan Sumatera 60,633 ha 976,394 mt 224,164 mt Total Planted Area FFB Production (FY19) Crude Palm Oil (FY19) 44
Slide 45: Planted Area & Weighted Average Age Profile
PLANTED AREA & WEIGHTED AVERAGE AGE PROFILE Malaysian Indonesian % GROUP Operations Operations Average Palm Age 14.3 7.9 10.4 Mature (> 20 years) 1,354 - 1,354 2 Mature-Prime 17,318 13,551 30,869 51 ( 8 - 20 years ) Mature-Young 3,316 18,565 21,881 36 ( 4-7 years ) Immature ( 1-3 years ) 2,793 3,736
Slide 46: Conclusion
Conclusion 46 Prestige Shantinikaten Banglore, India
Slide 47: Conclusion
CONCLUSION Execution of high outstanding construction order book and property unbilled sales to underpin medium term performance The Group is investing into new growth areas such as the NDWT at Kuantan Port, Menara Prudential at TRX and Vijayapura-Solapur BOT in India Selective participation i
Slide 48: Thank you
Thank you 48
IJM Corporation Berhad — Shareholder Meeting (August 2019) on 6ix