CB Industrial Product Holding Berhad Equipping Palm Oil Industries Around The World Third Quarter 2014 Results Update Review of Performance Quarterly Review Continuing Operations Revenue Profit from operations Share of results of associates and jointly-controlled entity Quarter ended 30 September % change 9 months ended 30 September % change 2014 2013 2014 2013 (RM’000) (RM’000) (RM’000) (RM’000) 149,399 136,093 9.78 394,860 429,861 (8.14) 25,142 24,660 1.02 71,477 70,776 0.01 2,120 4,332 51.06 4,545 2,390 90.17 24,602 24,921 (1.13) 69,996 65,497 6.87 8.52 8.29 2.77 25.26 22.43 12.62 Movement of CBIP mimics the movement of the Bursa Malaysia Profit before taxation Index, which27,048 28,944dependent (6.55) 75,634the price 72,789 of CPO 3.90 Plantation is largely upon Profit after taxation Earnings per share (sen) Revenue decreased by 8.14% for the 9 months financial period ended 30 September 2014, mainly due to lower billing by the special purpose vehicles division Profit numbers improved for 9 months financial period ended 30 September 2014 mainly due to improvement in project billing and margin in the palm oil engineering segment; and increased contribution from the plantation jointlycontrolled entity and associates 2 Review of Performance Revenue Breakdown 9 months ended 30 September 2014 Special Purpose Vehicles 25% 9 months ended 30 September 2014 Special Purpose Vehicles 44% Palm Oil Engineering 56% Palm Oil Engineering 75% 1 Profit Before Taxation Breakdown Profit Before Taxation 9 months ended 30 September % change 2014 2013 (RM’000) (RM’000) Palm Oil Engineering 67,457 57,804 16.70 Oil Palm Plantation (6,513) (4,994) 30.41 Special Purpose Vehicles 10,145 17,589 (42.32) 4,545 2,390 90.17 75,634 72,789 3.90 Share of results of associates and jointly-controlled entity Total 3 Prospect Palm Oil Engineering RM’000 510,000 500,000 490,000 480,000 470,000 460,000 450,000 440,000 430,000 420,000 410,000 400,000 499,000 488,092 483,118 465,000 The orderbook is expected to bode well for the performance of the palm oil engineering sector for the financial year ending 2014 and 2015 439,646 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 Orderbook Orderbook continues to grow, increasing by 3.33% from the preceding third quarter of 2013 to RM499 million as at the fourth quarter of 2014 Growth has been driven by an influx of new customers globally and market penetration in the Central American/African region 4 Prospect Special Purpose Vehicles 300,000 250,000 200,000 150,000 284,860 Orderbook 215,656 100,000 186,526 158,000 124,000 50,000 0 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 Orderbook for the special purpose vehicles remain solid at RM124 million as at second quarter of 2014, which is expected to last until the fourth quarter of 2014 5 Prospect Oil Palm Plantation - Indonesia 6 Prospect Oil Palm Plantation - Indonesia With current landbank of approximately 86,000 ha in Central Kalimantan, Indonesia aggressive plantation development has commenced since first half of 2013 Of the 86,000 ha in Indonesia, approximately 5,044 ha has been planted as at third quarter of 2014 with approximately 6,000 ha targeted to be planted for the year 2015 Revenue from the Indonesian plantation is expected to be realized in the first half of 2016, when the first mill is expected to be completed, with a second mill targeted to be completed in 2017 7 Prospect Oil Palm Plantation – Associates and JV With effective planted area attributable to CBIP of 7,000 ha, the associates and JV plantation assets has posted a combined profit of RM4.55 million for the 9 months period ended 30 September 2014, an increase of 90.17% over the preceding 9 months period ended 30 September 2013 With a non-controlling interest, performance of the associates and JV plantation assets is to a large extent, dependent upon the crude palm oil selling price and yield. Planted: 3,448 ha Planted: 2,319 ha Planted: 1,264 ha 8 Further Information Registered Office CB Industrial Product Holding Berhad Lot 4, Jalan Waja 15 Registered Office Kawasan Perusahaan Telok Panglima Garang 42500 Telok Panglim Garang Selangor Darul Ehsan Telephone No.: 03 3122 2786 Facsimile No.: 03 2122 1336 E-mail: [email protected] Website: www.cbip.com.my Contact Person Lim Zee Yang Investor Relations & Corporate Affairs CB Industrial Product Holding Berhad Telephone No.: 03 3122 2823 Cellphone No.: 012 6303451 Facsimile No.: 03 2122 1336 E-mail: [email protected] Disclaimer Certain statements in this presentation are based on historical results which may not be reflective of future results. Other statements, including without limitation, those regarding our future prospects, strategies and objectives of our Group, which are forward-looking in nature, are subject to uncertainties and contingencies. Although we believe that the expectations reflected in such forward-looking statements are reasonable at this time, there can be no assurance that such expectations will subsequently materialise. The inclusion in this presentation should not be regarded as a representation or warranty by our Group or our management team that the plans and objectives of our Group will be achieved. 9
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