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dbAccess Thailand and Malaysia Corporate Days
Thursday, 31 May – Friday, 1 June 2012, London
Deutsche Bank, Winchester House
1 Great Winchester Street
London EC2N 2DB
PETRONAS DAGANGAN BERHAD
2. Financial Review for YTD March 2012
3. Business Performance Review for
YTD March 2012
1. Overview of PETRONAS Dagangan Bhd
CONTENT
Financial Performance Review For YTD March 2012
En Rozaini M SaniChief Financial Officer
PETRONAS Dagangan Berhad (PDB) is the domestic marketing subsidiary of
Petroliam Nasional Berhad (PETRONAS owns 69.9%).
Its principal activities are the marketing and distribution of petroleum products
in Malaysia.
PDB was incorporated on 5 August 1982 and was converted to a public company
on 21 August 1993.
Shares of the Company were listed on the Main Board of the Bursa Malaysia
Securities Berhad on 8 March 1994.
4
Corporate Profile
2000 Launching of Primax & Sprinta 5000
2001 Launching of PDB Customer Service
Centre
2006 Launching of PETRONAS PRIMAX 3
2008 Acquired Lub Dagangan Sdn Bhd
2009 Introduced PETRONAS Urania, PRIMAX
95 and Dynamic Diesel
Introduction of New Mesra Loyalty
Programme
2010 Mesra Shoppe and PETRONAS Cards
Centre opened in KLCC
Introduced PRIMAX 97, Syntium Moto, M-
Plus and NGV Lube
Launch of 950th station at Taman Dagang,
(Nov)
2011 Introduced PETRONAS Nautimar FBO
(Feb)
Launch of PETRONAS PRIMAX 95 Xtra,
replacing PRIMAX 3.
2012 Launched PETRONAS Durance, a range
of high quality car care products that
were developed by its Italy-based sister
company, PETRONAS Lubricants
International (PCI)
1975 - Petronas established the
Domestic Marketing Department
1977 - Market entry : Bunkering at Pasir
Gudang, aviation at Penang and Senai
1979 - Operate skid tank station due to
diesel crisis
Building the Brand… Brand of 1st choice
1970s The new millennium1980s-1990s
The Beginning…
1981 Operated first service station. Entered
LPG market
1982 Incorporated as PDSB on 5 August
1992 Introduced Natural Gas for vehicles
(NGV)
1993 Converted to a public company on 21
August 1993
1994 Listed on the Kuala Lumpur Stock
Exchange (KLSE)
1996 Station reimaging and Mesra C-Store
1999 Introduction of Loyalty Programme
(Mesra Card)
Milestones
PETRONAS
DAGANGAN BHD
Ownership &
operation of aircraft
refueling system at
KLIA
Lube
marketing in
non-retail
market
Subsidiary
Associate
Operation of
MPP/KVDT
Operation of joint
depot &
bottling plant
Operation of bulk &
LPG terminal
in Kuching
Ownership/
Operatorship/
Maintenance of CODT
KAFS SDN BHD
PDB: 65%
MAHB: 20%
MAS: 15%
LUB DAGANGAN
PDB: 100%
PS PIPELINE S/B
PDB: 50%
SHELL: 50%
PS TERMINAL S/B(TAWAU & BINTULU)
PDB: 50%
SHELL: 50%
IOT MGMT S/BPDB: 20%
SHELL: 10%
Senari Synergy SB: 70%
ACDSBPDB: 20%
SHELL TIMUR :20%
Senari Synergy SB: 60%
Group Structure
MD/CEO
Corporate
Services
Commercial
BusinessRetail
Business
Lube
Business
Finance
Services
LPG
Business
Supply &
Distribution
HRM
Division
Internal
AuditProject
Mgmt
*PMO/CMDChief Operating
Officer
Legal &
Secretariat
Operation
Performance
Improvement
Strategic
PlanningHSE
*PMO – Project Management Office
CMD – Change Management Dept.
PDB Organization Structure
Supply and Logistics
S A R A W A K
S A B A H
P E N I N S U L A RM A L A Y S I A
B R U N E I
Kedah
Number of terminals
Fuel– 17
LPG – 9
Aviation – 12
TOTAL: 38
Langkawi
Prai
Melaka
KL/ Selangor
Lumut
Johor
Kertih
Kuantan
Penang
Pahang
Perak
Perlis
Terengganu
Kuching
Sibu
Bintulu
Miri
Labuan
Sep. Bay
Sandakan
Tawau
Joint Venture depots and facilities are:
i) MPP KVDT Bulk Depot
ii) Bintulu Bulk Depot
iii) Tawau Bottling Plant and Bulk Depot
iv) KLIA Aviation Depot
v) ASB JV for Bunkering facilities
vi) IOTM Senari
vii) CODT Tg Manis
Key Events / Highlights
• The Malaysian economy expanded by 5.2 per cent in the fourth quarter last year, leading to agrowth of 5.1 per cent for the whole year.
• Oil prices have risen during the quarter from the range of USD 117 to USD 135 per barrel duringthe quarter which has positively impact PETRONAS Dagangan Bhd’s (PDB) gross margins.
• On 28 May 2012, 21 projects worth over RM20 billion announced by the Prime Minister under theEconomic Transformation Programme (ETP).
• In 2012, private investment is forecast to climb 15.9%, supported by foreign and domesticinvestment.
• PDB achieved higher average selling prices (5.0%) and slight increase in sales volume (1.5%) for theperiod ended 31 March 2012 as compared to same period last year.
• Sales Volume, current period performance is higher than same period last year.
• PDB has just recently announced first interim dividend of 17.5 cent payable on June 2012 and 45cent interim dividend for the first quarter 2012 . PDB proposed 35 cent special dividend to beannounced at the Annual General Meeting (AGM) also in June 2012.
Key Financial Highlights
Qtr ended 31/03/2012 vs Qtr ended 31/03/2011
COMPREHENSIVE INCOME
Revenue increased by 7.4% to RM6,852.8 million from RM6,382.7 million
Profit Before Tax increased by 7.6% toRM339.7 million from RM315.6 million
As at 31/03/2012 vs as at 31/12/2011
FINANCIAL POSITION
Shareholders funds increased by 2.8% to RM4,913.3 million from RM4,778.9 million
Cash balances increased to RM766.4 million compared to RM470.2 million
Key RatiosAs at
31/12/2011As at
31/03/2012
Earnings Per Share (sen) 87.9* 99.1*
Return on Revenue (%) 4.0 3.6
Return on Equity (%) 18.2* 20.6*
Return on Total Assets (%) 12.2* 14.4*
* Annualised based on year to date figures as at 31 March 2012
Revenue
2,110.6
2,387.4
1,402.2
324.7364.6
115.4147.9
1,976.9
2,243.3
1,240.2
341.5
325.7109.8
145.3
-
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
Mogas Diesel Aviation Fuel Oil LPG Lube Others
RM'Mill
Q1 FY2012
Q4 FY2010/11
6,852.8 6,382.77.4
Q1 2012(RM Mil)
Q4 10/11(RM Mil)
+ / -(%)
Mogas31%
Diesel35%
Aviation20%
Fuel Oil5%
LPG5%
Lube2%
Others2%
Q1 FY2012
Consolidated Statement of Comprehensive Income : Qtr ended 31/03/12 vs Qtr ended 31/03/11
Gross Profit 629.4 592.76.2
Consolidated Statement of Comprehensive Income: Qtr ended 31/03/12 vs Qtr ended 31/03/11
Q1 2012(RM Mil)
Q4 10/11(RM Mil)
+ / -(%)
294.1
196.2
31.2
3.7
63.6
26.5 14.0
271.7
192.4
22.6 20.4
57.3
25.2
3.1
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Mogas Diesel Aviation Fuel Oil LPG Lube Others
RM' Mill
Q1 FY2012
Q4 FY2010/11
Mogas47%
Diesel31%
Aviation5%
Fuel Oil1%
LPG10%
Lube4%
Others2%
Q1
FY2012
Profit Before Taxation increased by RM24.2 million from previous corresponding quarter, due to higher gross profit and other income offset by higher operating expenditures.
280
290
300
310
320
330
340
Qtr Ended 31 March 2012
Qtr Ended 31 March 2011
339.7
315.5
RM Mill'
Profit Before Taxation
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Quarter Ended 31 March 2012
Quarter Ended 31 March 2011
328.7 312.0
38.7 34.6
RM Mill'
OPEX Other Income
Profit Before Taxation increased by RM32 million from Qtr Ended 31 Dec 2011.
280
290
300
310
320
330
340
Qtr. Ended 31 March 2012
Qtr. Ended 31 Dec. 2011
339.7
307.7
RM Mill'
Profit Before Taxation
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Qtr Ended 31 March 2012
Qtr. Ended 31 Dec. 2011
328.7 313.2
38.7 33.1
RM Mill'
OPEX Other Income
4,000.0
4,100.0
4,200.0
4,300.0
4,400.0
4,500.0
4,600.0
4,700.0
4,800.0
4,900.0
5,000.0
31/03/2012 31/03/2011
4,913.3
4,794.9
RM Mill'Shareholder's Fund
-
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
31/03/2012 31/03/2011
766.4
1,026.2
RM Mill'Cash Balance
Shareholder’s funds improved whilst Cash Balance decreased during the quarter
Shareholder’s funds and cash balances improved during the quarter.
4,000.0
4,100.0
4,200.0
4,300.0
4,400.0
4,500.0
4,600.0
4,700.0
4,800.0
4,900.0
5,000.0
31/03/2012 31/12/2011
4,913.3
4,778.9
RM Mill'Shareholder's Fund
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
31/03/2012 31/12/2011
766.4
470.2
RM Mill’Cash Balance
Increase in cash balance was mainly due to reduction in outstanding subsidy receivables
267
140210
269
86
479
299
190147
192255
277 373
271
875
653
751826
666
1,138
836880
678
366
193
393
538
1,015
863
1,020
912
1,145
1,437
1,026 1,027
870
621
470
766
0
200
400
600
800
1000
1200
1400
1600
RM' Mill Cash & Bank Balances
Cash & Bank
Deposits
Total
1,020
854
882 897 966
1,048
1,164 1,206
1,271
1,319
1,361
1,464
1519
1520
1447.27
1530
1596
6.70 7.35 7.90
8.55 8.92 8.70 9.05 9.27
10.1710.94
12.08
13.50
16.50
15.86
18.02
19.36
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
800
900
1000
1100
1200
1300
1400
1500
1600
1700
PETDAG vs KLCI
KLCI PETDAG
KLCI Index RM per Share
PDB’s share move in tandem with KLCI performance.
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FY
2005/06
FY
2006/07
FY
2007/08
FY
2008/09
FY
2009/10
FY
2010/2011FY 2011 FY2012
PDB P/E 7.99 9.53 12.01 13.57 11.96 18.85 20.02 21.30
Market PE 13.15 16.07 13.29 13.68 18.86 16.80 16.44 16.52
*Annualised based on 31 March 2012 results
50.8
64.5 66.6
75.8 75.7
87.5
65.9
99.1*
30
40
50
60
70
80
90
100
110
FY2005/06 FY2006/07 FY2007/08 FY2008/09 FY2009/10 FY2010/11 FY 2011 FY 2012
Earning Per Share
Earning Per Share
Due to shorter 9 months period
Earnings Per Share (EPS)
6.706.54
5.99
5.42
3.73
4.93 4.88
5.63 5.70
5.00
4.254.03
3.58
4.64
3.38 3.36
4.775.02
2.83
3.45
3.90
3.43
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
FY2004/05 FY2005/06 FY2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011* FY2012
PDB Dividend Yield - With Special Dividend
PDB Dividend Yield - Without Special Dividend
Market Dividend Yield
* Annualised based on the total dividend declared for FY2011
PDB’s dividend yield remain higher than market dividend yield
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0
10
20
30
40
50
60
70
80
90
100
FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY2011 FY2012
12 12 15
30
45
17.5
1033 33 30
3515
25
35
Sen Per Share Final - Special
Final
Interim - Special
Interim
FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011 FY 2012
Dividend Net (RM) 332,907 335,291 447,054 745,090 596,072 130,391
Net Dividend excluding special dividend/ PAT (%) (Payout) 51% 59% 45% 55% 51% 54%
PDB has announced an interim dividend on 21st May 2012
CAGR (with Dividend Reinvestment) – 19.8%Share Price (RM)
On 24.02.05 Bonus Issue at a ratio 1:1
Up to FY02/03 FY03/04 FY04/05*
FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY 2011 FY2012
No of Shares(with Dividend Reinvestment)
1,350 1,406 2,887 2,990 3,096 3,225 3,363 3,530 3,691 3,737 3,842
18 years 15 years 10 years 5 years 3 years 2 years 1 year
TSR %
(with Dividend Reinvestment)
19.8% 17.0% 25.4% 31.7% 36.8% 44.3% 19.5%
2.80
4.82
6.65
4.28 4.185.13
7.00
3.98 4.06
6.15
8.009.05
16.50
18.94
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
Mar 94Mar 95Mar 96Mar 97Mar 98Mar 99Mar 00Mar 01Mar 02Mar 03Mar 0423 Feb 0524 Feb 05Mar 05Mar 06Mar 07Mar 08Mar 09Mar 10Mar 11Dec 11Mar 12
PDB Total Shareholder Return as at 31 March 2012
Business Performance Review For YTD March 2012
1. Malaysian Economic
2. Business Performance
3. Business Outlook and Key Focus Area
Although the Malaysian economy is affected by global developments,
domestic demand has continued to support growth, driven by firm
consumption and investment activities
• Private consumption is supported by the employment conditions, income growth with introduction of minimum
wage policy and public sector measures. Investment activities are mainly led by the domestic-oriented industries,
the commodity sector and the public sector.
• Domestic demand is expected to continue to support growth in 2012. Private consumption growth is expected to
decelerate modestly due to BNM‟s prudent measures to rein in credit growth, particularly in the private debt
market as evident in the declining approvals for personal loans, housing loans and car loans.
•Business Confidence Index improved in the early 2012 due to dependent on domestic demand to drive growth
despite the external headwinds.
Source : CIRU-PETRONAS& BNM
• YTD March volume is above SPLY by 1.5% against SPLY.
• Slight growth in Q1 was mainly contributed by higher Diesel, Aviation and Fuel Oil sales.
Mil L
itre
sYTD Volume
3,429.1 3,481.3
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
4,000.0
SPLY YTD March FY2012
1.5 %
Slight volume growth in tandem with moderate economic performance
RETAIL BUSINESS
COMMERCIAL BUSINESS
LPG BUSINESS
LUBRICANTS BUSINESS
Achievement
8 March 2012, PERODUA signed RM225 million deal with PETRONAS Dagangan
Bhd
22 March 2012, Malaysian Largest Haulage Service Provider, Konsortium Logistik
Berhad (KLB) Signs with PETRONAS Dagangan Berhad for Five Years Exclusive
Supply of Synthetic Engine Oil
Activities
1 Jan 2012, successfully opened 4 new business partners‟ outlets with our PSS.
And they are – Subway at PSS NKVE, McDonald‟s Restaurant and Maybank
FOREX at PSS Batu Feringghi, and Dunkin Donut‟s Cafe at PSS Seremban-Kuala
Lumpur (north bound).
5 Jan 2012, PDB Participates in CIMB Asean Series 2012: Malaysia Corporate
Day.
12 Jan 2012, PETRONAS Dagangan Berhad Joins in Welcoming the Emirates
A380 to KLIA
10 March 2012, launched PETRONAS Durance, a range of high quality car care
products along with the car air freshener series that were developed by its Italy-
based sister company, PETRONAS Lubricants International (PLI).
13 March 2012, Central 2 with the tagline “Do Different Gain XTRA” have come
upon with a comprehensive training programme called „Cabaran Krew PETRONAS‟
to create excellent customer service.
Key achievement and activities from Jan – Mar FY2012
Positive economic growth outlook for May 2012
• Private consumption is supported by the employment conditions, income growth with introduction of minimum wage policy and public sector measures.
• Investment activities are mainly led by the domestic-oriented industries, the commodity sector and the public sector.
•We expect FDIs to continue its growth due to the implementation of the ETP projects. Large-scale projects, such as the US$11.7 billion Kuala Lumpur Mass Rapid Transit System are likely to contribute positively to the financial account.
Source : CIRU-PETRONAS & BNM
Key Focus Area
• Retail Business
• Achieving market leadership
• Increasing throughput volume
• Opening new stations
• Commercial Business
• Maintain and strengthen market
leadership
• Focus on primary target market
and quality customers
• LPG Business
• Maintain market leadership
• Improve on product network
availability and customer service
• Lube Business
• Aggressive market penetration
• Expand product range to include
fighting brand
Thank you