BATU KAWAN BERHAD
Investor Presentation
30-Jan-2013
2BATU KAWAN BERHAD
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
3BATU KAWAN BERHAD
Company Overview
Malay-Sino Chemical Industries Sdn Bhd (86%)• Chlor-alkali products,
methyl chloride, ferric chloride
See Sen Chemical Berhad (61%)• Sulphuric acid, oleum,
aluminium sulphate, sodium silicate
Kuala Lumpur Kepong Berhad (46.57% Associate)• Produce and process palm products and natural
rubber, oleochemical, property development• 251,325ha landbank – 212,300ha planted
PT Satu Sembilan Delapan (92%)• Plantation development in Kalimantan, Indonesia• 5,728ha landbank – 3,602ha planted
Collingwood Plantations (18% Investment)• Plantation development in Papua New Guinea• 44,342ha landbank for oil palm plantations
Menara KLK (100%)• 11-storey
commercial building in Mutiara Damansara, Petaling Jaya
Other investments
Note: % denotes BKB’s shareholding percentage
BATU KAWAN BERHAD
Plantations Chemicals Others
4BATU KAWAN BERHAD
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
5BATU KAWAN BERHAD
KLK Financial SummaryRevenue
7,855 6,658
7,491
10,743 10,570
0
3,000
6,000
9,000
12,000
FY08 FY09 FY10 FY11 FY12
(RM million)
EPS and DPS (Net)
Profit Before Tax
1,445
887
1,383
2,066
1,560
0
400
800
1,200
1,600
2,000
2,400
FY08 FY09 FY10 FY11 FY12
(RM million)
98
58
95
148
114
55 40
60
85 65
0
40
80
120
160
FY08 FY09 FY10 FY11 FY12
(Sen)
Return on Equity
18.8
10.9
16.9
22.2
17.0
0
5
10
15
20
25
FY08 FY09 FY10 FY11 FY12
(%)
6BATU KAWAN BERHAD
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
844 1,868
2,516 3,087
25371559
911515
0
1,000
2,000
3,000
4,000
FY09 FY10 FY11 FY12
Mature Immature
(hectare)
FFB Yield
3.5
14.5 16.3
18.4
0
5
10
15
20
FY09 FY10 FY11 FY12
(mt/ha)
7BATU KAWAN BERHAD
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
8BATU KAWAN BERHAD
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 effective shareholding is 18%
BKB’s Chemical Group recorded FY2012 revenues of RM294.9 million and operating profits of RM48.9 million
9BATU KAWAN BERHAD
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
10BATU KAWAN BERHAD
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
11BATU KAWAN BERHAD
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
12BATU KAWAN BERHAD
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
(1) As at 30-Sep-2012
Tenants
13BATU KAWAN BERHAD
BKB Financial SummaryOperating Profit
38
66
103
55 63
0
20
40
60
80
100
120
FY08 FY09 FY10 FY11 FY12
(RM million)
Share of Results of Associates
Profit Before Tax
523
351
573
785
626
0
200
400
600
800
1,000
FY08 FY09 FY10 FY11 FY12
(RM million)
Return on Shareholders’ Equity
18.1
11.6
18.1 21.2
16.3
0
5
10
15
20
25
FY08 FY09 FY10 FY11 FY12
485
285
471
732
564
0
200
400
600
800
FY08 FY09 FY10 FY11 FY12
(%)
(RM million)
14BATU KAWAN BERHAD
Dividends and Shareholders’ Equity
2.8 2.9 3.1
3.7 3.8 6.5 6.8 7.5
8.8 9.0
0.0
2.0
4.0
6.0
8.0
10.0
1.01.52.02.53.03.54.0
FY08 FY09 FY10 FY11 FY12Shareholders' Equity Net Assets per Share
(RM billion)
Shareholders’ Equity and Net Assets per Share
117.3 79.2
134.2
186.5 145.3
57.9 40.0
65.0 95.0
65.0
0
50
100
150
200
FY08 FY09 FY10 FY11 FY12EPS DPS (Net)
(Sen)
Earnings per Share and Dividends per Share (Net)
(RM / Share)
BATU KAWAN BERHAD
Thank You