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ANALYST BRIEFING

FOR THE FOURTH QUARTER ENDED 2016

22 FEBRUARY 2017

22/2/2017MSM Malaysia Holdings Berhad Analyst Briefing Q4 2016 1

Group Financial Highlights

Performance Review

Sugar Market Overview

Ongoing Initiatives

Q&A Session

CONTENTS

01

02

03

04

05


GROUP FINANCIAL HIGHLIGHTS

FOR THE FOURTH QUARTER 2016 RESULTS


FINANCIAL HIGHLIGHT

22/2/2017 4

FINANCIAL Q4 2016 Q4 2015 Changes % FY2016 FY2015 Changes %

Revenue RM ‘mill 838 664 26.20 2,658 2,307 15.21

PBT RM ‘mill 24 92 (73.91) 148 372 (60.22)

PAT RM ‘mill 14 61 (77.05) 121 275 (56.00)

Total Assets RM ‘mill 3,217 2,722 18.19

Total Liabilities RM ‘mill 1,230 685 79.56

Cash and Cash Equivalents RM ‘mill 376 124 203.22

Net Assets per Share RM/share 2.83 2.90 (2.41)

Earning per Share (EPS) sen 17.17 39.16 (56.15)

Gearing Ratio* % 25.82 17.07 8.75

OPERATIONAL

Sales volume MT 269,714 301,324 (10.49) 1,028,266 1,034,088 (0.56)

* Gearing ratio equals to net debt divided by total capital of the Group. Net debt is calculated as total borrowings (including ‘current and non-current borrowings’ as shown in the consolidated statement of financial position). Total capital is calculated as ‘equity attributable to owners of the Group’ as shown in the consolidated statement of financial position plus the net debt of the Group.

MSM Malaysia Holdings Berhad Analyst Briefing Q4 2016

4TH QUARTER &

YEAR ON YEAR

PERFORMANCE FOR 2016


4TH QUARTER 2016 PERFORMANCE

22/2/2017 6

(RM mil) Q4 2016 Q3 2016 QoQ% Q4 2015 YoY%

Revenue 838 633 32.39 664 26.20

GP margin 7.64% 12.13% (4.49) 17.92% (10.28)

Expenses (814) (600) 35.67 (572) 42.31

Profit Before Tax 24 33 (27.27) 92 (73.91)

Profit for the Period 14 23 (39.13) 61 (77.05)

Net profit margin 1.67% 3.68% (2.01) 9.19% (7.52)

EPS 2.05 sen 3.32 sen (38.25) 8.71 sen (76.46)

Attributable to Shareholders- ROE- Net Asset per Share(RM/Share)

0.72%2.83

1.14%2.91

(0.42)(2.75)

2.97%2.90

(2.25)(2.41)

QoQThe Group recorded a total revenue RM 838 million inthe current quarter compared to the preceding quarterof RM 633 million.

YoY (Quarter)Higher revenue compared to the same period last yearon the back of improved selling price and highervolume of refined sugar sold for the Domestic marketsegment.

QoQPBT was RM 24 million vs preceding quarter of RM 33 million. PATwas RM 14 million vs preceding quarter PAT of RM 23 million.

YoY (Quarter)PBT was RM24 million compared to previous corresponding periodof RM 92 million. PAT was RM 14 million compared to previouscorresponding period PAT of RM 61 million due to the higher rawmaterial costs and weakening Ringgit.

REV

ENU

E

PR

OFI

T B

EFO

RE

TAX

(P

BT)

A

ND

PR

OFI

T A

FTER

TA

X (

PA

T)

MSM Malaysia Holdings Berhad Analyst Briefing Q4 2016

FY 2016 PERFORMANCE

22/2/2017 7MSM Malaysia Holdings Berhad Analyst Briefing Q4 2016

(RM mil) FY 2016 FY 2015 YTD %

Revenue 2,658 2,307 15.21

GP margin 12.45% 21.20% (8.75)

Expenses (2,510) (1,935) 29.72

Profit Before Tax 148 372 (60.22)

Profit for the Period 121 275 (56.00)

Net profit margin 4.55% 11.92% (7.37)

EPS 17.17 sen 39.16 sen (56.15)

Attributable to Shareholders- ROE- Net Asset per Share (RM/Share)

6.08%2.83

13.37%2.90

(7.29)(2.41)

RevenueThe Group revenue was increased compared to revenue in the same period last year on the back improvedselling price, higher volume of refined sugar sold and and higher trading revenue.

PBT and PATDecreased 56.00 % as compared to previous corresponding period’s PAT as a results of higher raw material costand production cost, eventhough there is a spike in raw sugar price not able to be passed on the buyers.

YoY

REVIEW OF SALES PERFORMANCE


SALES REVENUE FY 2016 vs FY 2015

22/2/2017 MSM Malaysia Holdings Berhad Analyst Briefing Q4 2016 9

1,276

996

890

980

236294

0

200

400

600

800

1,000

1,200

1,400

FY 2016 FY 2015

RM mil Domestic Industries Export

53%

44%

10%

43%

13%

37%

• Total sales revenue of refined sugar was RM 2,402 milvs RM 2,270 mil in 2015.

• The Group sold more to Domestic consumers at 53%of total sales compared to 44% in 2015.

* Note:

1) Sales figure is AFTER consolidation adjustment 2) The sales figure excludes the sales of molasses

*TOTAL SALES

RM 2,270mil

SALES VOLUME FY 2016 vs FY 2015

491

397 399

464

138173

0

100

200

300

400

500

600

FY 2016 FY 2015

MT ‘000 Domestic Industries Export

48%

38%

13%

45%

17%

39%

*TOTAL SALES

1,028,266 mt

*TOTAL SALES

1,034,088 mt

• The Group sold more to Domestic consumers at 48% oftotal sales compared to 2015 of 38%

• Industries sales volume down by 65,000 tons comparedto 2015 due to reclassification and price adjustment.

*TOTAL SALES

RM 2,402 mil

SALES REVENUE Q4 2016 vs Q4 2015


379

279 272

244

52

114

0

50

100

150

200

250

300

350

400

Q4 2016 Q4 2015

RM mil Domestic Industries Export

54%

44%

7%

38%

18%

39%

• Total sales revenue of refined sugar was RM 703 milin Q4 2016 vs RM 637 mil in Q4 2015.

• The Group sold more to Domestic consumers at 54%of total sales compared to 44% in 2015.

* Note:

1) Sales figure is AFTER consolidation adjustment 2) The sales figure excludes the sales of molasses

*TOTAL SALES

RM 637 mil

SALES VOLUME Q4 2016 vs Q4 2015

143

114

101

118

26

39

0

20

40

60

80

100

120

140

160

Q4 2016 Q4 2015

MT ‘000 Domestic Industries Export

53%

42%

10%

44%

14%

37%

• The Group sold more to Domestic consumers at 53% oftotal sales in Q4 2016 compared to Q4 2015 of 42%

*TOTAL SALES

RM 703 mil

*TOTAL SALES

269,714mt

*TOTAL SALES

301,324mt

SUGAR MARKET OVERVIEW 2016


CURRENCY MARKET: MYR TO USD (Q4 YoY BASIS)


NY11 PRICE MOVEMENT (Q4 YoY BASIS)

3.90

4.00

4.10

4.20

4.30

4.40

4.50

4.60

1-O

ct

8-O

ct

15-

Oct

22-

Oct

29-

Oct

5-N

ov

12-

No

v

19-

No

v

26-

No

v

3-D

ec

10-

Dec

17-

Dec

24-

Dec

MYR

to

USD

2015 2016

0.00

5.00

10.00

15.00

20.00

25.00

30.00

October-December

Raw Sugar USD/Lb

2016 2015

Q4 2016 Q4 2015 % Change

Open 22.80 12.87 77.15

Close 19.51 15.24 28.01

High 23.90 15.85 50.78

Low 17.84 12.87 38.61

Trading Range 606 pts 298 pts 103.55

Average 20.88 14.67 42.33

CURRENCY MARKET: MYR TO USD


NY11 PRICE MOVEMENT (2016 & 2015)

0.00

5.00

10.00

15.00

20.00

25.00

30.00

4-Jan 4-Feb4-Mar 4-Apr 4-May 4-Jun 4-Jul 4-Aug 4-Sep 4-Oct 4-Nov 4-Dec

USD Cents/lb

2016 2015

2016

2015High: 16.16

cn/lb

2016Low: 12.45

cn/lb

2015Low: 10.13

cn/lb

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec

USD:MYR

2015 2016

2015Weak: 4.4805

2016Weak: 4.538

2015Strong: 3.495

2016Strong: 3.8375

Thailand season will end by next month and expecting a crushing of 91MMT and sugar production reaching almost the same level 9.2MMT.

Indian sugar production is down by 9.79% from last year as per Jan17.

Market is discussing of a possible return of El Nino maybe in the second half of 2017.

Oil prices rallied due to OPEC cut policy.

Surplus in production for 2017-18 as crop is expected to recover in India, Thailand also expecting a bumper crop in Brazil.

Q2 2017 will be really tight for the market as possibility rises for India to import.

WORLD SUGAR MARKET – HIGHLIGHTS AND OUTLOOK


THANK YOU

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