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IOI CORPORATION 1. PROFILE IOI Corporation Berhad is an investment holding company engaged in the cultivation of oil palm and processing of palm oil. 1 IOI Group's formation years were associated with real estate when it forayed into property development in 1982 followed by Oil Palm plantations in 1985 2 . IOI Group was a very different organization then. At that time, IOI Plantation Division had a planted area of only about 50,000 hectares whereas a few of the largest players in the industry had planted areas ranging from 100,000 hectares to about 130,000 hectares. IOI estates’ average CPO yield per hectare was 3.88 tonnes. In terms of profit before tax (PBIT) – IOI Properties was having a PBT of about RM120 million whereas IOI corporation was having a PBT of about RM260 million. 3 IOI has classified its business under five major segments, namely Property Development, Property Investment, Plantation, Resource-based manufacturing and Other 1 Retrieved from http://www.corporateinformation.com/ioi-corporation 2 Retrieved from http://www.ioigroup.com/corporationinfo/corp_abotus.cfm 3 Retrieved from http://www.ioigroup.comnewsroom/beritaIOIpdfversion/Issue34.pdf

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Page 1: Ioi Corporation Real

IOI CORPORATION

1. PROFILE

IOI Corporation Berhad is an investment holding company engaged in the cultivation of oil palm and processing of palm oil.1

IOI Group's formation years were associated with real estate when it forayed into property development in 1982 followed by Oil Palm plantations in 19852. IOI Group was a very different organization then. At that time, IOI Plantation Division had a planted area of only about 50,000 hectares whereas a few of the largest players in the industry had planted areas ranging from 100,000 hectares to about 130,000 hectares. IOI estates’ average CPO yield per hectare was 3.88 tonnes. In terms of profit before tax (PBIT) – IOI Properties was having a PBT of about RM120 million whereas IOI corporation was having a PBT of about RM260 million.3

IOI has classified its business under five major segments, namely Property Development, Property Investment, Plantation, Resource-based manufacturing and Other operations. The property development segment is mainly engaged in the development of residential, industrial, and commercial properties. The plantation segment is engaged in cultivation of oil palm and rubber, and processing of palm oil. Property development segment is engaged in the development of residential and commercial properties. Property investment segment is engaged in investment in shopping mall, office complex and other properties. Resource-based manufacturing segment is engaged in manufacturing of chemicals, specialty oils and fats, palm oil refinery, and palm kernel crushing. The other operations segment is engaged in management and operation of hotels and resorts, landscape services and other operations of hotels, and resorts landscape services and other operations. On August 20, 2008, it acquired Laksana Kemas Sdn Bhd. On February 11, 2009, the Company acquired Zonec Plus Sdn Bhd. As of June 30, 2009, the Company held 99.7% interest in IOI Properties Berhad.

1 Retrieved from http://www.corporateinformation.com/ioi-corporation2 Retrieved from http://www.ioigroup.com/corporationinfo/corp_abotus.cfm3 Retrieved from http://www.ioigroup.comnewsroom/beritaIOIpdfversion/Issue34.pdf

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2. Vision & Mission Statement

Vision IOI

“To be a leading corporation in our core businesses by providing products and services of superior values and by sustaining consistent long-term growth in volume and profitability.”

Mission Statement

“To be a leading producer and supplier of quality oleo chemical and related products by consistently satisfying our customers’ needs through continual improvement and sustaining long-term growth in line with VISION IOI.”

 

 

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3. THE LISTS OF DIRECTORS IOI CORPORATION BERHAD

4. GROUP STRUCTURE

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- IOI Group comprises of hundreds of companies helmed by IOI Corporation Bhd - a public listed company on the Malaysian Stock Exchange - with business activities under three key segments.4

5. BUSINESS CYCLE (IOI)

- IOI's business activities can be broadly categorized in 3 linked segments as shown below, where products and services are offered externally or consumed

4 Retrieved from http://www.ioigroup. com/corporationinfo/corp_abotus.cfm

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along the value chain for further value-add activities before reaching consumers. Each activity in the value-chain complements the next, creating a logical progression in which we transform basic resources (i.e. land and crops) to a wide range of high value-added products.

Retrieved from http:// www.ioigroup.com

The Stock Prices Movements and Volume for IOI Corporation

(Jan – June, 2010)

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Adopted from: Thompson Data stream / IOI

Performance of Company for the 3 rd Quarter 2010

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Adopted from: IOI Financial Annual Report 2010

Performance of Company for the 3 rd Quarter 2010

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Adopted from: IOI Financial Report 2010

Performance of IOI company for the 3 rd quarter 2010

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Adopted from: IOI Financial Annual Report 2010

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Performance of IOI company for the 3 rd quarter 2010

Adopted from: IOI Financial Annual Report 2010

Performance of IOI company for the 3 rd quarter 2010

Dividend

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- The board has on 10 February 2010 declared an interim single tier dividend of 70% or 7.0 sen per ordinary share of RM0.10 each in respect of the financial year ending 30 June 2010. The dividend was paid on 25 March 2010.- No Dividend has been proposed for this quarter (31 March 2009: interim single tier dividend of 30% or 3.0 sen)- The total dividend declared to date for the current financial year is single tier dividend of 7.0 sen (31 March 2009: 6.0 sen) per ordinary share of Rm0.10 each.

Adopted from: IOI Financial Annual Report 2010

Performance of Company for the 3 rd Quarter 2010

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Adopted from: IOI Financial Annual Report 2010

Review of the Performance of the Company and Its Principal Subsidiaries

a) Q3 FY2010 vs. Q3 FY2009

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- The Group reported a pre-tax profit of RM709.3 million for Q3 2010, which is 402% higher than the profit of RM141.3 million reported for Q3 FY2009. The higher profit is due mainly to higher contributions from the property and manufacturing segments and unrealised translation gain on USD denominated borrowings of RM231.5 million (Q3 FY2009 - loss of RM232.4 million).

- The plantation segment’s profit of RM282.0 million for Q3 FY2010 is in line with Q3 FY2009. The slightly lower FFB production for the current quarter was cushioned by higher average CPO prices realised. Average CPO prices realised for Q3 FY2010 was RM2, 480/MT compared to RM2, 274/MT for Q3 FY2009.

- The resource-based manufacturing segment reported an operating profit of RM128.6 million for Q3 FY2010 as compared to RM109.6 million in Q3 FY2009.

- The property segment’s operating profit of RM124.7 million for Q3 FY2010 is 76% higher than the profit reported for Q3 FY2009. The significantly higher profit is contributed mainly by an overall increase in sales.

b) Q3 YTD FY2010 vs. Q3 YTD FY2009

- The Group reported a pre-tax profit of RM1.93 billion for Q3 YTD FY2010, which is 106% higher than the profit reported for Q3 YTD FY2009. The higher profit is due mainly to higher profit contributions from the property and manufacturing segments and unrealised translation gain on USD denominated borrowings.

- In the opinion of the Directors, the results for the financial period under review have not been affected by any transaction or event of a material or unusual nature which may have arisen between 31 March 2010 and the date of this announcement.

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Performance of Company For the 4 th quarter 2010

Adopted from: IOI Financial Annual Report 2010

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Performance of Company For the 4 th Quarter 2010

Adopted from: IOI Financial Annual Report 2010

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Performance of Company For the 4 th Quarter 2010

Adopted from: IOI Financial Annual Report 2010

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Performance of Company For the 4 th Quarter 2010

Adopted from: IOI Financial Annual Report 2010

Performance of Company For the 4 th Quarter 2010

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Adopted from: IOI CORP Annual Report 2010 (Figure 3)

Adopted from: IOI CORP Annual Report 2010 (Figure 4)

Based on Figure 3 and Figure 4 the performance of IOI in terms of Dividend and Earning per Share are as follows:

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- According to IOI Annual Report 2010, the board has on 10 February 2010 declared an interim single tier dividend of 70% or 7.0 sen per ordinary share of RM0.10 each in respect of the financial year ended 30 June 2010. The dividend was paid on 25 March 2010.

- The Board now declares a second interim single tier dividend of 100% or 10.0 sen per ordinary share of RM0.10 each in respect of the financial year ended 30 June 2010 which is not taxable in the hands of the shareholders pursuant to paragraph 12B of Schedule 6 of the Income Tax Act 1967.

- The dividend will be payable on 7 October 2010 to shareholders whose names appear in the Record of Depositors of the Company at the close of business on 27 September 2010.

- A Depositor shall qualify for entitlement only in respect of:

a) Shares transferred into the Depositor’s Securities Account before 4.00 p.m. on 27 September 2010 in respect of transfers; and

b) Shares deposited into the Depositor’s Securities Account before 12.30 p.m. on 23 September 2010 (in respect of shares which are exempted from mandatory deposit); and

c) Shares bought on Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of Bursa Malaysia Securities Berhad.

The total dividend declared to date for the current financial year is a single tier dividend of 17.0 sen (30 June 2009: 8.0 sen) per ordinary share of RM0.10 each.

Performance of Company For the 4 th Quarter 2010

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Adopted from: IOI Financial Annual Report 2010

Review of the performance of the company and its Principal Subsidiaries

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a) Q4FY2010 vs. Q4 FY2009

- The group reported a pre-tax of Rm618.0 million for Q4 FY 2010, which is higher than the profit reported for Q4 FY 2009 of RM612.8 million.

- The Plantation segment reported a 6 % increase in operating profit to RM274.5 million for Q4 FY2010 as compared to RM259.35 million for Q4 FY2009. The higher profit is due mainly to an improvement in CPO prices realised. Average CPO prices realised for Q4 FY2010 is RM2, 504/MT compared to RM2, 455/MT for Q4 FY2009.

- The property segment’s operating profit of RM190.8 million for Q4 FY2010 is 28% lower than the RM266.6 million recorded for Q4 FY2009. The lower profit reported is mainly due to lower appreciation in value of investment properties of the Group compared to FY2009. In Q4 FY 2010, the net fair value gain recognised is RM21.0 million (Q4 FY2009 - RM110.8 million). After excludingThe net fair value gain, the operating profit for Q4 FY2010 would be 9% higher than Q4 FY2009.

- The resource-based manufacturing segment reported an operating profit of RM135.7 million in Q4 FY2010, which is 28% lower than Q4 FY2009. The lower profit is mainly attributable to lower margins from the refinery operations.

b) FY2010 vs. FY2009

- The Group reported a pre-tax profit of RM2.55 billion for FY2010, which is 65% higher than the profit of RM1.55 billion reported for FY2009. The higher profit is due mainly to unrealised translation gain on long term USD denominated borrowings of RM395.8 million (FY2009 - unrealised loss of RM315.3 million) and no further impairment loss at the jointly controlled property entity in Singapore during FY2010 (FY2009 - loss of RM258.6 million).

- The plantation segment reported a 31% decrease in operating profit to RM1.13 billion for FY2010 as compared to RM1.64 billion for FY2009. The lower operating profit was due mainly to lower average CPO prices realised of RM2,372/MT (FY2009 - RM2,831/MT) and lower FFB production of 3,405,090 MT (FY2009 - 3,626,776 MT).

- The resource-based manufacturing segment reported an operating profit of RM568.6 million for FY2010, which is 59% higher than FY2009. The lower profit in the preceding year is due mainly to realised foreign exchange losses on derivative contracts and customer defaults on high priced contracts incurred.

- The property segment’s operating profit of RM602.9 million for FY2010 is 29% higher than the RM467.0 million recorded for FY2009. The higher profit reported is contributed mainly by an overall increase in sales despite a lower fair value

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gain on investment properties reported of RM21.0 million (FY2009 - RM110.8 million).

- In the opinion of the Directors, the results for the financial period under review have not been affected by any transaction or event of a material or unusual nature which may have arisen between 30 June 2010 and the date of this announcement.

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THE MOVEMENTS OF STOCK PRICES AND VOLUME FOR IOI CORPORATION

(FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2010)

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Adopted from: Thompson Data stream / IOI