1 Corporate Presentation 2nd Quarter 2016 (period ended 31 Dec 2015) Updated February 2016
1
Corporate Presentation
2nd Quarter 2016(period ended 31 Dec 2015)
Updated February 2016
2
AgendaAgenda
Financial Performance
Operations Review
Summary
Company Overview
3
Company OverviewCompany Overview• Principal activities
– extraction and trading of logs
– manufacturing and export of plywood, veneer and sawn timber, block-board
and film-overlay
– development of oil palm estate (since 2002)
– management & operation of CPO mill; and
– reforestation
• Products
• Quality assurance
– JAS Certification: allows Jaya Tiasa to sell plywood to Japan at premium price
– CE Certification: allows Jaya Tiasa to sell plywood to European Economic Area
– CARB Certification: allows Jaya Tiasa to sell plywood to the US marketCompany Overview
Round logs Plywood Sawn Timber Veneer Fresh Fruit Bunch
4
Timber Concession AreaTimber Concession Area
Company Overview
Forest Concession
License No.
T/3113 T/3114 T/3044 T/3352
T/3353
T/3370
T/3371
T/3372
Total
Gross Area (Hectares) 65,487 78,838 50,648 518,238 713,211
Extraction Quota(July 2015 – June 2016)
Per Month Total Per Annum
Volume (m3) 78,000 936,000
Large timber concession area and quota in
Malaysia
5Company Overview
Timber Concession Timber Concession -- locationlocation
Bakun Dam
6
Timber Production CapacityTimber Production Capacity
Products Total Installed Production Capacity
Plywood Production (m3)Per Month
Per Year
35,000
420,000
Veneer Production (m3)Per Month
Per Year
27,000
324,000
Sawn Timber Production (m3)Per Month
Per Year
9,000
112,800
JTP1 & N,
Putai
RHP, Tg
Ensurai
JTP2, Tg
Ensurai
JTTP, Tg
Manis
The Group downstream processing activities are carried out by its 3 wholly
owned subsidiary companies:-
7
Oil Palm OperationsOil Palm Operations
• Sizeable oil palm estate with an estimated plantable area of
69,589 ha. Planted 69,589 ha to-date.
• Significant contribution from oil palm sector in the next few years
Company Overview
PLANTED TO-DATE
Oil Palm Plantations
Total Land Area
Planted Area Matured Area
83,483 hectares (Estimated
Plantable Area: 69,589 ha)69,589 hectares 60,787 hectares
8
Crude Palm OilCrude Palm Oil
324,00027,00060Daro Jaya CPO Mill
486,00040,50090Wealth Houses CPO Mill
60
MT per hourCPO MillMT Per Month Total MT Per
Annum
Lassa CPO Mill 27,000 324,000
Production CapacityP
9
PLANTED TO-DATE
28%12,265*44,31771,828Guanaco MaujayaLPF 0028
16%9,909*62,027108,144Bahau LinauLPF 0024
28%9,387*34,03355,887Merirai BaluiLPF 0023
22%31,561*140,377235,859Total
LPF Project Gross Area (Ha) Plantable Area (Ha) Planted to-date (Ha) % Planted
Species planted End uses
Kelampayan Face veneer, blockboard
P.falcataria Blockboard, veneer
A.mangium Outdoor furniture, truck flooring, veneer
Eucalyptus Sawn timber, veneer
G.arborea Face veneer, sawn timber
Reforestation Reforestation (Planted Forest Operation)(Planted Forest Operation)
Sustainable forest management, reforestation and renewable
resources to ensures long-term growth
•Area established by both
Enrichment Tree
Planting and Industrial
Tree Planting Methods
The average survival rate
of the planted seedlings
is above 95%.
Company Overview
10
Planted Forest Operations Planted Forest Operations
-- LocationLocation
Company Overview
Bakun Dam
11
Company Overview
Operations Review
Summary
AgendaAgenda
Financial Performance
12
55--Year Financial HighlightsYear Financial Highlights
Financial Performance
*Financial Year changed to 30 June starting FY2012 ie 14 months
2.18
22,271
31,269
(1,046)
22,897
111,539
1,054,098
FY 2013
20.23
170,666
224,874
149,828
179,797
283,680
1,183,684
FY 2012*
18.20
152,706
206,042
136,111
152,704
234,963
870,912
FY 2011
86,41173,532EBIT
60,38535,817Operating Profit
5.49
55,619
79,949
172,970
1,033,342
FY 2014RM’000 FY 2015
Revenue 1,032,209
EBITDA 171,916
Profit Before Tax 52,567
Profit After Tax 34,445
Earnings per Share
(sen)3.27
13
2QFY2016 Financial Highlights2QFY2016 Financial Highlights(Oct 2015 (Oct 2015 –– Dec 2015)Dec 2015)
RM’000 2Q FY16 2Q FY15QoQ
%6M FY16 6M FY15
YoY
%
Revenue 330,336 288,345 4% 547,960 550,209 0%
Gross Profit 87,634 42,783 105% 160,210 118,259 35%
Profit before Tax 35,259 (4,022) 977% 67,861 28,458 138%
Profit net of Tax 27,691 (4,272) 748% 52,359 19,550 168%
Earnings per Share
(sen)2.76 (0.51) 637% 5.25 1.92 174%
Financial Performance
14
Profit Performance by segmentProfit Performance by segment
FY 2015Revenue
RM’000
Revenue
%
PBT
RM’000
PBT
%
Profit
Margin
Timber products 734,418 71% 124,305 121% 17%
Oil palm operations 297,283 29% (21,494) -21% -7%
Operating results 1,031,701 100% 102,811 100% 10%
Financial Performance
6MFY16Revenue
RM’000
Revenue
%
PBT
RM’000
PBT
%
Profit
Margin
Timber products 358,345 65% 86,741 105% 24%
Oil palm operations 189,575 35% (4,455) -5% -2%
Operating results 547,920 100% 82,286 100% 15%
15
Cash FlowCash Flow
Financial Performance
RM ’000
Current
year-to-date
31 Dec 2015
Corresponding
year-to-date
31 Dec 2014
Net cash generated from
operating activities89,033 40,245
Net cash used in investing
activities(139,187) (81,063)
Net cash generated from/(used
in) financing activities108,624 36,782
Effect of exchange rate
changes0 0
Cash & cash equivalents at
beginning of financial period(103,310) (64,944)
Cash & cash equivalents at end
of financial period(44,840) (68,980) (103,310)
(64,944)
19
24,158
(164,715)
102,172
FY 2015
16
Balance SheetBalance Sheet
RM ’000 As at 31/12/15 As at preceding FY end
30/06/15
Non-Current Assets 2,901,691 2,793,527
Current Assets 298,421 293,785
Total Assets 3,200,112 3,087,312
Total Equity 1,817,789 1,775,110
Non-Current Liabilities 689,947 493,987
Current Liabilities 692,376 818,215
Total Equity & Liabilities 3,200,112 3,087,312
Net Asset per share (RM) 1.87 1.83
Financial Performance
17
AgendaAgenda
Company Overview
Financial Performance
Summary
Operations Review
18
Revenue Breakdown by ProductsRevenue Breakdown by Products
Operations Review
1,602
816
705
1,842
FY2015
1,5901,732Veneer
877745Sawn Timber
RM/m3 2QFY16 2QFY15
Plywood 2,188 1,788
Logs 779 650
Source: Jaya Tiasa Holdings Berhad
Average Selling Price
1,400
2,166
399
FY2015
390397FFB
2,1312,105CPO
1,2611,318PK
RM/MT 2QFY16 2QFY15
2QFY16 (Oct 15 – Dec 15)
8FFB
18CPO
7Veneer
2PK
2QFY15Oct 14 - Dec 14
(%)
Plywood 25
Logs 38
Sawn Timber 2
Logs
30%Veneer
11%
CPO
23%
PK
3%
FFB
8%
Plywood
24%
Sawn
Timber
1%
19
Average Export Timber Price TrendAverage Export Timber Price Trend
Financial Performance
0
100
200
300
400
500
600
700
2Q FY14 3Q FY14 4Q FY14 1Q FY15 2Q FY15 3Q FY15 4Q FY15 1Q FY16 2Q FY16
USD/m3
Logs Plywood
20
Average Palm Oil Price TrendAverage Palm Oil Price Trend
Financial Performance
0
500
1000
1500
2000
2500
3000
2Q FY14 3Q FY14 4Q FY14 1Q FY15 2Q FY15 3Q FY15 4Q FY15 1Q FY16 2Q FY16
RM/MT
FFB CPO PK
21
Revenue Breakdown by CountriesRevenue Breakdown by Countries
Operations Review
0UK / Europe
0USA
5Asean
1Australia
2QFY15
(Oct 15 – Dec 15)%
Japan 7
India 35
Middle East 4
Taiwan 16
Korea 24
China /
Hong Kong8
2QFY16 (Oct 15 – Dec 15)
Taiwan
14%Asean
5%
Hong
Kong/China
12%Australia
1%
Japan
8%
Korea
29%
India
31%
Timber OperationTimber Operation
22
Logs Sales PerformanceLogs Sales Performance
Operations Review
1QFY11 ( May 10 – Jul 10)
1Korea
2QFY15
(Oct 14 – Dec 14)%
Japan 3
India 66
Taiwan 18
China/Hong Kong 2
Asean 10
2QFY16 (Oct 15 – Dec 15)
Taiwan
11%
Japan
7%
India
70%
Asean
12%
Timber OperationTimber Operation
23
Plywood Sales PerformancePlywood Sales Performance
Operations Review
0UK/Europe
0Asean
0USA
2QFY15
(Oct 14 – Dec 14)%
Middle East 10
Japan 13
Korea 51
China/
Hong Kong18
Taiwan 8
2QFY16 (Oct 15 – Dec 15)
Korea
45%
Hong
Kong/China
28%
Taiwan
14%
Australia
1%
Japan
11%
Middle East
1%
Timber OperationTimber Operation
24
Sawn Timber Sales PerformanceSawn Timber Sales Performance
Operations Review
0Middle East
0Korea
74Taiwan
0Asean
19India
7China/Hong Kong
2QFY15
(Oct 14 – Dec 14)%
Timber OperationTimber Operation
2QFY16 (Oct 15 – Dec 15)
Taiwan
89%
China/Hong
Kong
11%
25
Veneer Sales PerformanceVeneer Sales Performance
Operations Review
6Australia
57Korea
0Asean
0China/Hong Kong
37Taiwan
2QFY15
(Oct 14 - Dec 14)%
Timber OperationTimber Operation
2QFY16 (Oct 15 – Dec 15)
Korea
78%
Taiwan
20% Australia
2%
26
Timber Production Timber Production UtilisationUtilisation
Operations Review
Jaya Tiasa
Plywood S/B
Rimbunan
Hijau
Plywood S/B
Jaya Tiasa
Timber
Products S/B
Total
Installed
Production
Capacity
Plywood
Production (m3)
Per Month
Per Year
15,000
180,000
10,000
120,000
10,000
120,000
35,000
420,000
Veneer
Production (m3)
Per Month
Per Year
27,000
324,000
27,000
324,000
Sawn Timber
Production (m3)
Per Month
Per Year
8,200
98,400
800
14,400
9,000
112,800
Timber OperationTimber Operation
FY20156MFY16
22%
66%
42%
Production
Utilisation
2,000
17,800
14,800
Total Actual
Production
20%1,800Per MonthSawn Timber
Production (m3)
59%15,900Per MonthVeneer
Production (m3)
31%10,700Per MonthPlywood
Production (m3)
Production
Utilisation
Total Actual
Production
Note: Total actual production based on Jul 14 to Jun 15 figures
27
Oil Palm OperationsOil Palm Operations
Operations Review
69,589
2,133
16,287
5,448
2,933
8,580
9,841
4,099
5,757
9,645
4,866
Estimated
Plantable
area (ha)Plantation
Land
Area
(ha)
Project
Commence
Project
Complete
Development
work achieved in
percentage
Planted
to-date
(ha)
Immature
(ha)
Matured
(ha)
Simalau Plantation 5,003 2002 2005 100% 4,866 0 4,866
Hariyama Plantation 10,600 2003 2007 100% 9,645 0 9,645
Wealth Houses
Plantation6,000 2004 2007 100% 5,757 0 5,757
Lepah Plantation 5,149 2005 2009 100% 4,099 0 4,099
Daro Plantation 11,681 2005 2011 100% 9,841 0 9,841
Eastern Eden Plantation 10,000 2006 2015 100% 8,580 2,020 6,560
Poh Zhen Plantation 5,000 2009 2015 100% 2,933 2,933 0
Sawai Plantation 6,050 2006 2012 100% 5,448 0 5,448
Lassa Plantation 21,300 2005 2015 100% 16,287 3,849 12,438
Kabang Plantation 2,700 2008 2010 100% 2,133 0 2,133
Total 83,483 69,589 8,802 60,787
Planting Schedule as at December 2015
28
Oil Palm ProjectionsOil Palm Projections
13.83
766,467
22.7%
61.7%
15.6%
65,681
30-Jun-2014
(Actual)
12.50
740,013
39.8%
46.0%
14.3%
69,054
30-Jun-2015
(Actual)
16.8716.4514.99FFB yield
1,155,0001,060,000935,000FFB production (MT)
75.2%64.5%53.8%
Prime mature (%)
(>7 years)
0.0%7.4%12.3%
Immature (%)
(<4 years)
24.8%28.1%33.9%
Young mature (%)
(4-7 years)
69,589
30-Jun-2018
69,589
30-Jun-2017
69,589
30-Jun-2016
Planted area (ha)
Operations Review
Significant contribution from oil palm sector in
the next few years
29
Oil Palm YieldOil Palm Yield
Operations Review
399
740,013
193,063
67,158
67,649
58,256
112,903
43,509
34,058
35,336
182,673
45,750
61,436
75,487
251,374
84,484
91,056
75,834
FY 2015
443
766,467
167,637
52,616
61,700
53,321
151,452
53,453
41,025
56,974
213,327
60,606
69,656
83,065
234,051
79,042
74,160
80,849
FY 2014
423
666,899
167,280
64,403
57,071
45,806
127,591
40,030
41,052
46,509
179,534
51,160
61,088
67,286
192,493
68,269
57,862
66,362
FY 2013
397
508,581
234,029
65,391
73,039
95,599
274,552
96,926
95,967
81,659
FY 2016
YTD TOTAL (MT)
Jul
Aug
Sep
1Q
Oct
Nov
Dec
2Q
Jan
Feb
Mar
3Q
Apr
May
Jun
4Q
Average selling price
(RM/MT)
Monthly
Fresh Fruit Bunch
Production
Volume
(metric tonnes)
* Financial Year has been restated accordingly
30
Potential for higher FFB yields• Our prime mature palm trees has been able to achieve a high FFB yield
of 24.16 MT/ha
• With a young weighted average age profile of approximately 7 years
old, Jaya Tiasa will continue to enjoy exponential growth
3.44
11.11 11.77 11.97 12.7114.82
19.15
24.16
0
5
10
15
20
25
4 5 6 7 8 9 10 11
FFB yield against age profile of treesFFB yield
(MT/ha)
Age profile (years)
31
A leading earnings growth• Jaya Tiasa was one of the earliest among listed timber companies to
venture into palm oil industry, a vision that will continue to reward
shareholders for the foreseeable years
• Jaya Tiasa has planted on average of 4,639 ha per year since 2002
885 922
2388
3525
7198 7527
12086
9027
6866
4593
35284200
29363373
535
0
2000
4000
6000
8000
10000
12000
14000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Oil palm planting (2002 - 2015)ha
32
Plantation Overview
Prime
Mature
54%
Immature
12%Young
Mature
34%
8,802 ha-Immature (<4 years)
23,368 ha-Young mature (4-7 years)
37,419 ha- Prime mature (>7 years)
69,589 haPlanted area
69,589 haPlantable area
83,483 haLandbank
Young Profile of trees with significant contribution from the sector in the very
near future. 21% of the planted trees are aged 10 years and older
Plantations profile
0
200
400
600
800
1000
1200
1400
FY15 FY16 FY17 FY18
Th
ou
san
ds
26%20%
16%Projected CAGR
37,419 Ha
27,456 Ha
14,918 Ha
7,720 Ha
54%FY16
39%FY15
21%FY14
11%FY13
Prime Mature Profile
Note: % is on total planted area
33
Palm Oil MillsPalm Oil Mills
Operations Review
1,2611,318Average PK selling price (MYR/MT)
2.9%
3,354
2,131
17.1%
19,841
2QFY15
(Oct 14 – Dec 14)
2,105Average CPO selling price (MYR/MT)
2.8%PK Extraction Rate
4,918PK Production (MT)
17.1%CPO Extraction Rate
2QFY16
(Oct 15 – Dec 15)Mill Production
CPO Production (MT) 30,458
34
Palm Oil MillsPalm Oil Mills
Operations Review
65,000Wealth House plantation45Jul 2009Mill 1
30,00090Completed
70,000Hariyama Plantation60Jun 2016Mill 4
95,000
70,000
Capital Expenditure
(RM’000)
Lassa Plantation120Mar 2015Mill 3
Sep 2013
Date
Commission
60
Capacity
(MT / hour)
Daro Jaya PlantationMill 2
Location of Palm Oil mills Mills
35
Oil Palm Operations Oil Palm Operations -- LocationLocation
Operations Review
36
AgendaAgenda
Company Overview
Financial Performance
Operation Review
Summary
37
Summary: TimberSummary: Timber
Log Extraction Quota
(July 2014 – June 2015) Per Month Total Per Annum
Volume (m3) 78,000 936,000
Timber Products
Total Installed
Production Capacity
Plywood Production (m3) Per Year 420,000
Veneer Production (m3) Per Year 324,000
Sawn Timber Production (m3) Per Year 112,800
Forest Concession
License No. T/3113 T/3114 T/3044 Others* Total
Gross Area
(Hectares)65,487 78,838 50,648 518,238 713,211
*Others refer to T/3352, T3353, T/3370, T/3372
38
Summary: Oil PalmSummary: Oil Palm
39.8%
46.0%
14.3%
69,504
30-Jun-2015
(Actual)
53.8%
33.9%
12.3%
69,589
30-Jun-2016
64.5%
28.1%
7.4%
69,589
30-Jun-2017
75.2%Prime mature (%)
(>7 years)
0%Immature (%)
(<4 years)
24.8%Young mature (%)
(4-7 years)
69,589
30-Jun-2018
Planted area (ha)
Plantation Profile
PLANTED TO-DATE
Oil Palm Plantations
Total Land Area
Planted Area Matured Area
83,483 hectares (Estimated
Plantable Area: 69,589 ha)69,589 hectares 60,787 hectares
39
Summary: Oil PalmSummary: Oil Palm
39
3.44
11.11 11.77 11.97 12.7114.82
19.15
24.16
0
5
10
15
20
25
4 5 6 7 8 9 10 11
FFB yield against age profile of trees
3186461747
99858
180684
359100
604836666899
766467740013
2007 2008 2009 2010 2011 14M12 2013 2014 2015
FFB Production (MT)
Plantations profile
CAGR: 48%
Young
Mature
34%
Immature
12%Prime
Mature
54%
8,802 ha-Immature (<4 years)
23,368 ha-Young mature (4-7 years)
37,419 ha- Prime mature (>7 years)
69,589 haPlanted area
69,589 haPlantable area
83,483 haLandbank
4040
No. 1- 9 Pusat Suria Permata
Jalan Upper Lanang 10A
96000 Sibu, Sarawak, Malaysia
www.jayatiasa.net
Investor Relation Webpage Linkhttp://www.jayatiasa.net/usr/investor_relations.html
41
This presentation was prepared for informational purposes only and shall not be
copied, or relied upon by any other person for whatever purpose. This presentation
must be viewed in conjunction with the oral presentation provided by officers of Jaya
Tiasa Holdings Berhad. Nothing in this presentation constitutes accounting, legal,
regulatory, tax or other advice. The reader(s) of this document should consult his/her
own professional advisors about the issues discussed herein. This presentation is not
intended as an offer or solicitation with respect to the purchase or sale of any
investment product and nothing herein should be construed as a recommendation to
transact in any investment product.
DisclaimerDisclaimer