PPB GROUP BERHAD

1
PPB GROUP BERHAD
Final Results Year Ended 31 December
2006 Presented by Koh Mei Lee Senior Manager
(Corporate Affairs)
2
Agenda

• Group Financial Highlights
• Financial Results for Year 2006
• Segmental Information
• Major Contributors to Groups Profit
• Cash Borrowings

2. Profit Before Tax for Years 2002 - 2006
3. Dividend Record for Years 2002 - 2006
4. Share Performance for Year 2006
3
Agenda
5. Capital Commitment as at 31 Dec 2006
6. Expansion / Future plans

• 7. Proposed Disposals of PPBOP, PGEO
• and KOG
• Introduction Offers from Wilmar
• Sale Consideration to PPB
• Update
• New Wilmar Group structure
• Rationale Benefits
• Effects of Proposed Disposals on PPB

4
Group Financial Highlights
5
Financial Results
6
Segmental Information
Sugar cane 7
Others 5.6
Grains trading, flour feed milling 8
Property 0.4
Revenue Total RM11.5 billion
Edible oils refining trading 72
Film exhibition 1
Oil palm plantations 5
Waste management utilities 1
7
Segmental Information

Sugar cane 14
Others 3
Grains trading, flour feed milling 18
Property 2
Operating profits Total RM600 million
Edible oils refining trading 25
Film exhibition 3
Oil palm plantations 34
Waste management utilities 1
8
Major Contributors to Group Operating Profit

• Reason for higher/ lower profits
• Sugar cane
• Higher raw sugar prices.
• Grain trading, flour feed milling
• Higher sales.
• Edible oils refining trading
• Better refining margins.
• Oil palm plantations
• Higher CPO prices.
• Higher crop production.
• Average CPO price realized -
• Year 2006 RM 1,465 per tonne
• Year 2005 RM1,349 per tonne

RM million
RM38m (23)
RM23m (18)
RM53m (93)
RM6 m (7)
9
Major Contributors to Group Operating Profit

• Reason for higher/ lower profits
• Waste management utilities
• Divestment of loss making subsidiary, Marathon
  Equipment Asia Pte Ltd.
• Film exhibition
• Stronger performance of blockbuster films.
• Contribution from new cineplex.
• Property
• Write-back of development cost in 2005.
• Others
• Livestock (down RM23 million)
• Chemicals trading manufacturing (down
  RM12million)
• Packaging (up RM5.4 million)

RM48m (74)
RM million
RM5m (26)
RM1m (6)
RM9m (150)
10
Cash and Borrowings
RM Million
11
Profit Before Tax for Years 2002 - 2006
12
5-year Profit Before Tax
RM Million
Year
13
Dividend Record for Years 2002 - 2006
14
Dividend Record
Final dividend for year 2006 is payable on
Thursday, 7 June 2007.
15
Share Performance for Year 2006
16
Share Performance
23-2-07
1283
29-12-06
30-6-06
1096
3-1-06
RM6.40
915
892.85
RM5.45
RM4.08
RM4.00
Year 2006 Closing Price (high) - RM5.45 Closing
Price (low) RM3.86 Market Capitalization as _at_
31.12.06 RM6,460,974,356.00
24
31
Y2006
Y2007
17
Capital Commitment as at 31 December 2006
18
Capital Commitment as at 31 Dec 2006
Capital commitments
RM 910 million
RM 568m
RM166m
RM 15m
RM 144m
RM 3.5m
RM 13.5m
PPBOP
PPB Leisure
PPB Hartabina
FFM
MSM
Others
19
Capital Commitment as at 31 Dec 2006
PPBOP
FFM
MSM
20
Capital Commitment as at 31 Dec 2006
PPB Hartabina
PPB Leisure
21
Expansion / Future Plans
22
Expansion / Future Plans

• Sugar
• Continue to enhance its packing, logistic and
  other operational efficiencies.
• Expand its export activities.
• Flour and animal feed milling
• Continue to expand its business locally and
  regionally as well as expanding downstream
  activities.
• Edible oils refining
• To explore new opportunities in oleochemical and
  biodiesel industries.
• To identify other downstream products.

23
Expansion / Future Plans

• Oil palm plantations
• Continue the development of its land bank in
  Indonesia.
• Further improve on its mill extraction rates.
• Waste management utilities
• Continue to engage in the water and waste
  projects set out in the 9th Malaysian Plan.
• Continue to explore new markets both locally and
  overseas.
• Leverage on its strategic partnerships in China
  for growth.

24
Expansion / Future Plans

• Film exhibition
• To expand cinema business in Klang Valley and
  East Malaysia.
• Continue to explore new multiplex sites.
• Property
• Development projects at
• Taman Aman comprising 84 units of bungalow,
  semi-detached and shop houses.
• New World Park, Penang Phase II comprising of
  FB outlets
• Bedong Housing Project at Taman Sinar Mentari.
• Whiteaways Arcade at Beach Street Church
  Street, Penang Restoration of prewar buildings
  for retail and commercial activities.

25
Proposed Disposals of PPB Oil Palms
Berhad, PGEO Group Sdn Bhd, and Kuok Oils
Grains Pte Ltd
26
Introduction Offers from Wilmar

• On 14 December 2006, PPB announced that FFM had
  received a letter of offer from Wilmar stating
  their intention to acquire the following from
  FFM -

• 65.8 equity interest in PGEO for a purchase
  consideration to be satisfied by the issuance of
  287,122,772 Wilmar shares
• 28 equity interest in KOG for a purchase
  consideration to be satisfied by the issuance of
  305,635,556 Wilmar shares

• In addition, PPBOP, had on even date, received a
  Notice of Conditional Voluntary Offer from CIMB
  Investment Bank Berhad , on behalf of Wilmar, to
  acquire all the ordinary shares of RM1.00 each in
  PPBOP to be satisfied by the issuance of 2.3
  Wilmar Shares for each PPBOP Share.

27
Sale Consideration to PPB
Based on the last traded price of Wilmar Shares
on 27 February 2007 of SGD2.61 Assuming
exchange rate of SGD1.00 RM2.29 Representing
RM13.75 per PPBOP Share
28

Updates

• The SC (FIC) had on 17 January 2007, advised that
  it has no objection to Wilmars proposed VGO of
  PPBOP. Equity conditions may be imposed on PPBOP
  following verification of acceptance.
• The PPB Board appointed AmInvestment Bank Berhad
  as its Adviser to the Proposed Disposals.
• The PPB Board had considered the terms and
  conditions of the Proposed Disposals, and after
  considering the advise from AmInvestment Bank,
  had on 24 January 2007 approved the Proposed
  Disposals and agreed to present it to the
  Shareholders of PPB at an EGM for their
  consideration and approval.
• An EGM is tentatively scheduled to be held in
  early April 2007 for the above purpose.
• Approvals of other relevant authorities for the
  Proposed Disposals are still awaited.

29
Enlarged Wilmar Group Structure
19.6
PPB
KOG Vendors
WHPL
ADM
Minorities
18.2
48.5
6.7
13.8
12.8
WILMAR
100
65.8
100
100
KOG
PGEO
PPBOP
IPT Assets
Existing Business
34.2

• PPB will hold approximately 18.2 of the
  enlarged share capital of the Wilmar Group upon
  completion of the Proposed Disposals (assuming
  full acceptances of the VGO by all shareholders
  of PPBOP).

30
Rationale Benefits of the Proposed Disposals

• To unlock the value of PPBs investments in
  PPBOP, KOG and PGEO, and venture into an
  investment with higher expected returns and
  greater potential for capital appreciation -

• PPB is expecting to realize a significant amount
  of gain in its balance sheets from the Proposed
  Disposals.
• As at 27 February 2007 RM
  
• Sale consideration 6,946,638,605.00
• Market capitalization of PPB
• (RM6.00 x 1,185,499,882 shares) 7,112,999,292.00

31
Rationale Benefits of the Proposed Disposals

• Entry into one of Asias largest integrated
  agribusiness group carrying the entire value
  chain of the palm oil business -

• Leading merchandiser and processor of palm and
  lauric oils in the world
• Leading palm and lauric oils refiner in the world
  with plantations in Malaysia and Indonesia
• Leading merchandiser of palm and lauric oils in
  most major markets in the world (China, India,
  Africa, Eastern Europe and Middle East)
• One of significant palm biodiesel manufacturers
  (expected to commence in 2007)
• Significant increase in production capacities as
  follows -

32
Rationale Benefits of the Proposed Disposals
Significant increase in production capacities
(Indonesia and Malaysia)
(Source Wilmars press conference presentation
on 14.12.06)
33
Rationale Benefits of the Proposed Disposals

• B. Sizeable plantation owner in Indonesia and
  Malaysia
• 2nd largest land bank in Malaysia after the
  proposed Synergy Drive
• One of the largest oil palm plantation companies
  in the world in terms of land bank

(Source Wilmars press conference presentation
on 14.12.06)
34
Rationale Benefits of the Proposed Disposals
C. Dominant presence as merchandiser and
processor of edible oils and oilseeds in China

• KOG
• Leading merchandiser of consumer
• pack edible oils
• One of the largest manufacturers
• of oleo-chemicals
• Manufacturing facilities in flour
• and feed milling, specialty fats, oil
• seeds crushing and refining

• WHPL ADM
• Largest oilseed crusher and edible
• oils refiner
• Leading merchandiser of consumer
• pack edible oils
• One of the largest manufacturers of
• oleo-chemicals
• Manufacturing facilities in flour and
• rice milling and specialty fats

• Fully integrated group from processing of
  oilseeds to merchandising of finished
  agricultural products
• Largest oilseed crusher, edible oils refiner,
  specialty fats and oleo-chemical manufacturer and
  merchandiser of consumer pack edible oils

(Source Wilmars press conference presentation
on 14.12.06)
35
Rationale Benefits of the Proposed Disposals

• Growth opportunities and presence in processing
  and merchandising of agriculture products in
  China

• Significant increase in the production capacities
  in China in respect of edible oils, oilseeds and
  grains as follows -

(Source Wilmars press conference presentation
on 14.12.06)
36
Rationale Benefits of the Proposed Disposals

• Opportunity to combine palm oil assets and
  benefit from the synergies arising from the
  merger

• Unified brand identity
• Unified procurement and logistics activities
• Lower procurement costs for main cost items,
  e.g.. Fertilizers
• Better logistics management/transport
  efficiencies
• Human resource optimization
• Sharing of distribution network
• Expansion of customer base
• Common sales and marketing force
• Extensive consumer pack edible oils distribution
  network
• Additional international outlet for its products
• May utilize milling and refining capacity of
  Wilmar for its FFB production

37
Effects of Proposed Disposals on PPB

Will be disclosed in the circular to
shareholders, to be issued at a later date.
38
THE END