Professional Documents
Culture Documents
B A C K G R O U N D
Incorporated under Companies Act, 1984. Listed on MSE and LSE thru GDRs in 1998. A well diversified Group of investments comprising of five segments: Financial Services National Bank of Malawi. Telecommunications MTL & TNM. Energy- Puma Energy , Ethanol and Presscane Food & Beverages Maldeco Fisheries & Carlsberg Group Consumer PTC and Macsteel All other reportable segment Tobacco processing Limbe Leaf Real Estates Press Properties Limited Corporate office Slide below shows our involvement in each unit
NBM 52%
Ethanol 66% PUMA Energy 50% Macsteel 50% Carlsberg Group 40%
M I X
G O V E R N A N C E I S S U E S
Board comprises professionals of diverse profiles Consists of 6 NonExecutives and 2 Executives The Chairman is nonexecutive & the Board meets quarterly Responsible for policy, strategic guidance and direction Board Committees - 1) Audit & 2) Appointments and Remuneration The Group has adopted strict policies in: Personal equity trading avoid inside trading. Corporate anti fraud (subscribes to Tip Offs Anonymous) Non discriminatory HIV / AIDS policy The Group embraces the following Corporate Governance codes: Code of ethics Business Code of Conduct Business Action Against Corruption Malawi Code II King III The Group also abides by all local & foreign regulations MSE, LSE, Companies Act, 1984 , Taxation etc Below is the representation of the Shareholders structure;
PCL SHAREHOLDERS
P C L S H A R E H O L D E R S
Others-Public 22% Press Trust 45% Deutsche Bank America 21% Old Mutual 12%
B U S I N E S S A N A L Y S I S
160 000
140 000 120 000 100 000 80 000
Trend Analysis
60 000
40 000 20 000 Total assets Total equity Owners' equity Turnover Gross profit
FY2007
FY2008
FY2009
FY2010
FY2011
Group reflects an upward trend in all its key performance indicators. With the foundation in place, this trend is likely to accelerate. However, emerging macroeconomic conditions need to be monitored very closely.
B U S I N E S S G R O W T H
18%
50%
9% 25% 12%
13%
23%
Turnover
30%
18%
25%
Gross profit
11%
18%
Total assets
19%
54% 9% FY2007 FY2008 11%
FY2009
FY2011
AVRG
An overall growth of about 25% is recorded. Equity & total assets grew by average of 25% and 21% respectively. Whilst revenue grew by 28%, gross profit averaged 26%.
P R O F I T A B I L I T Y
30 000
25 000
20 000 15 000 10 000 5 000
FY2007 Gross profit FY2008 Profit before tax FY2009 Profit for the year FY2010 Owners' profit FY2011
Generally, good upswing in Gross profit. Decline in PBT & PAT in 2011 due to one off write offs in NBM and increase borrowing costs Good divesture decisions between 2003 and 2006 start paying off
P E R F O R M A N C E
11.8%
13.0%
11.9%
13.0%
9.1%
11.8%
15.5%
Return on assets
4.2% FY2007
5.3% FY2008
4.6% FY2009
5.5% FY2010
3.9% FY2011
4.7%
Average
R E V I E W
ROE at 15.5% was well above average inflation of 7.2%. Net profit margin outperformed average yield of TB at 8.2%.
P C L A T M A R K E T
1 2 3 4 5 6 7 8 9 10 11 12 13
Counter PCL NBM TNM NICO ILLOVO STANDARD MPICO SUNBIRD FMB NBS NITL REAL OML
Price % Yield (Div) % Yield (E) P/E (x) P/BV (x) 188.00 2.52 27.54 3.63 56.00 8.04 13.61 7.35 1.75 3.78 7.31 13.67 15.00 2.67 18.87 5.3 150.00 4.20 6 16.66 120.00 11.82 14.45 6.92 2.40 6.40 88.7 1.13 7.00 4.57 18.97 5.27 6.50 4.57 12.32 8.12 12.50 6.12 15.76 6.34 17.50 5.43 6.73 14.85 1.20 8.66 11.55 550.00 2.03 12.36 8.09
Market cap (mln) 0.7 22,247.33 1.67 26,147.88 2.26 249,486.33 1.13 13,038.00 6.23 107,016.66 1.98 24,533.42 0.36 2,872.56 0.36 1,831.08 1.9 16,353.75 1.64 10,696.36 0.89 2,362.50 1.67 300.00 1.9 2,532,994.73
No of shares 120,255,820 466,926,438 10,040,450,000 1,043,041,096 713,444,391 213,334,084 1,149,023,730 261,582,580 2,336,250,000 727,643,339 135,000,000 250,000,000 4,871,143,719
highest earnings and lowest div yields amongst MSE listed companies. This implies huge retention rate for reinvestments and future growth. 2nd lowest P/E (x) implies cheapest in MK terms per expected earning unit. Both P/BV & P/E (x) point in the same direction of a cheap stock in Mkt. AT MK 188.00 PCL shares are still undervalued vis a vis its NAV, P/BV, & expected Sustainable future growth.
Overview continued..
Results affected by MK1.7b Fair value loss on newly constructed National Bank of Malawi Business Centre and Office Complex Challenging macro-economic environment characterized by severe foreign currency shortages and the attendant fuel supply shortages Increase borrowing costs following a 10% devaluation of the Kwacha
Segmental performance
40 000 000 35 000 000 30 000 000 25 000 000 20 000 000 15 000 000 10 000 000 5 000 000 (5 000 000) Financial services 11 715 206 10 759 397 8 691 732 Telecom munications 19 363 444 12 837 658 12 015 014 The Foods & Beverage segment 20 918 160 8 968 440 5 854 083 Energy Segment 38 405 386 5 501 396 3 068 453 Consumer Goods Segment 18 945 990 2 902 344 2 305 895 Investment in Associates The all other Segment 1 009 307 649 272 1 073 542
Turnover
G Profit
O/Heads PAT % of Group PAT
3 557 686
46%
188 669
2%
1 482 230
19%
1 934 569
25%
457 354
6%
873 499
11%
(784 364)
-10%
SEGMENTAL REVENUE
G R O U P
R E V E N U E
G R O U P E A R N I N G S
Telecommunicatio n , 192 , 3%
G R O U P
Energy 8 141 6%
A S S E T S
Treasury
International Trade Finance Asset / Fund Management Equity Trading Brokerage Transfer Secretariat & Custody Operations
Forex 7%
Returns Analysis
5% 33% 8% 32% 5% 4% 32% 25% 4% 23% 26% ROA ROE NPM
30%
34%
34%
30%
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
A declining trend in the last two years due to Economic turmoil that engulfed the country. With recovery in sight, the trend reversal is likely from 2012.
100 000 80 000 60 000 40 000 20 000 NBM SBM FMB NBS Assets Advances Deposits
3 558.00
3 546.00
2 015.00
1 686.00
13 721.00
10 521.00
6 706.00
6 756.00
8 160.00
4 980.00
4 269.00
4 128.00
NBM
SBM
Net interest income
FMB
Net income
NBS
Profit after tax
51%
53%
54%
67% FY2009
NBM
SBM
FMB NBS
PCL 11%
PCL has an additional 22% ownership of TNM through MTL which essentially makes PCL the majority shareholder with 33%
Market share Prepaid subscribers Post paid suncribers ARPU Mk ARPU US$ Yr 2007 29% 323,900 10,078 1,445 10.30 Yr 2008 33% 617,662 9,949 1,032 7.37 Yr 2009 33% 816,920 11,158 1,017 6.90 Yr 2010 37% 1,129,870 10,130 841 7.20
TNM has seen a consistent growth in its market share for the past 3 years. TNM has both corporate and individual customers offering the both Post paid and prepaid packages with the following services: Voice Local International Broadband and Data Internet SMS , MMS Value added services Call conference Yr 2011 Caller tunes 42% 1,533,000 Call waiting 6,000 Call holding 761
4.65
Key Ratios
Gross profit Margin
58%
MK' million
Return on Capital
25%
58%
63%
59% 15% 19% 23% Yr 2009 61%
Revenue Mk' million Postpaid Revenue Prepaid revenue International Roaming Interconnect revenue
ARPU 'MK
1.
Yr 2007 ARPU Pre-paid MK 3 192 ARPU Postpaid MK 5 371 ARPU overall MK 3 663
Yr 2009 1 711
6 414 2 412
Yr 2010 1 622
8 150 2 413
Yr 2011 1 425
10 549 2 317
ARPU in dollars ARPU Post-paid US$ ARPU Pre-paid US$ ARPU overall US$
23 39 27
15 41 20
12 44 17
11 54 16
Route to Tanzania
In 2009 MTL launched the first ever Optical fibre backbone in Malawi of approximately 1500km across Malawi
Songwe
Karonga
MZUZU
LEGEND Regional capital Main backbone node Minor Backbone Node Optical fibre backbone Planned optical fibre links Microwave backbone route Microwave repeater
Mzimba
Dwangwa
Kasungu
Dedza
Mangochi Balaka
Page 27
MTLs Revenue
Yr 2007 Post paid revenue Prepaid revenue Internet revenue Yr 2008 Yr 2009
IP Data Revenue
CPE and CDMA Revenue Interconnection revenue
yr 2010 yr 2011 38% 36% 26% 28% 4% 10% 11% 10% 3% 3% 19% 13%
MTLs revenue picked up from 2010 and 2011 with the biggest growth in LibertyPHONE
Trend analysis
Percentage growth
23 000
100.0% 80.0% 60.0% 40.0% 20.0% 0.0%
Key Ratios
MK'million
-20.0%
-40.0%
Yr 2007 58%
Yr 2008 41%
Yr 2009 41%
yr 2010 39%
yr 2011 28%
5 854
741 826
5 642
(1 266) (279)
5 362
(702) (212)
6 367
(205) (3)
6 725
(1 205) (1 129)
14%
10% 7.6%
-5%
-7% -5.1%
-4%
-4% -2.9%
0%
-1% -0.9%
-17%
-13% -9.3%
Ethanol Business
The Ethanol companies are situated in Dwangwa and Nchalo
Ethanol Company
Indetrust 26%
Presscane Limited
Press corporation Limited 50.1%
Illovo Dwangwa 8%
PCL 66%
Ethanol sales
Fuel Ethanol Portable Alcohol Rectified Alcohol Total sales Total export Plant Capacity per yr
Yr 2009 Yr 2010 '000 ltrs '000 ltrs 6,632 7,332 4,664 5,087 5,089 3,850 16,385 16,269 48% 29% 27,800 31,800
5 500 5 000 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011
Trend Analysis
64% growth
Mk million
Increase in earnings in 2011 was a result of an increase in petrol/ethanol blending ratio from 10% to 20%. Major local customers Puma Malawi Carlsberg- MDL Total Oil Malawi AGA Trading Petroda Engen Energem Dulux paint Major export customers Chevron Varibo LDA Mozambique Farsha General Suppliers Uganda Tatti and Sons Tanzania
85%
Revenue
1 357
2 101 2 041 2 528 4 157
Total Assets
Equity
2 547
3 277 3 488 4 202 5 170
779
1 699 1 839 2 427 3 300
Key ratios
13% 26% 71% 68% 38% 44% 60% 41% 31% 28% 42% Return on capital % Return on Equity % Gross profit Margin % Net profit margin %
61%
39%
62%
20%
64% 25%
69% 26%
16%
PUMA
Shareholding structure
PCL 50%
PUMA ENERGY 50%
Trend Analysis
35 000 30 000 25 000 20 000 15 000 10 000 5 000 -
Yr 2007 Revenue 18 839 Profit befire tax 983 Total Assets 5 644 Total Equity 1 892
Ratio Analysis
10% 4% 46%
8% 3% 42%
9% 4% 61%
9% 4% 49%
8% 2% 26%
17% 39%
16%
31%
21% 42%
22%
Return on Assets %
Return on Equity %
37%
Yr 2007
Yr 2008
Yr 2009
Yr 2010
Market share
Engen 8%
Petroda 17%
1% 9%
1% 33%
Total 29%
56%
Paraffin Lubricants
Puma Energy has 156 retail outlets country wide Regained its market share from 30% to 46% due to revamping of some service stations Sole supplier of aviation fuel in Malawi Supplier of major customers in Malawi in the mining, construction and engineering sectors
Maldeco Aquaculture
Feedmill production in tones
2084
2686
1374
1589
1427
2007
2008
2009
2010
2011
2008
2009
2010
2011
Located in the southern part of Lake Malawi Has 5 fishing vessels The biggest supplier of fish in Malawi Declining production due to changing weather patterns and reducing fish population in the lake
Has a total capacity of 9,984 tones, Big growth potential currently production under 30% Produces the whole range of animal feed Sole producer of fish feed in Malawi
70% 60%
531
501
2007
2008
2009
2010
2011
10% 0% Gross profit Margin Yr 2007 Net profit Margin Yr 2008 Return on Assets Yr 2009 Return on Equity Yr 2010 Return on capital Yr 2011
Aqua fish farming has got the hatchery with 44 Breeding ponds 1200 square meter that produce fingerlings 53 cages on lake Malawi of 1200 cubic meters, capacity 40 tons/yr per cage 21 Growing out ponds of 1200 square meters An Integrated Aquaculture Agriculture project to have a full farm with fish and livestock is in progress. 200 1 hectare ponds currently under constructed This will increase production by 2000 tons per year at significantly lower production costs
Mk'million
Carlsberg Malawi
Has a 3 plants situated in all the three regions in Malawi. Enjoys 97% market share for clear beer and 91% for non alcoholic beverages.
133
96
140 103 Total sales Beer Minerals &Squash Spirits & wines
31 1.4 Yr 2007
35 1.6 Yr 2008
30 1.9 Yr 2009
34 2.7 Yr 2010
35 1.9 Yr 2011
Trend analysis
Shareholding structure
Mk' million Carlsber g Internati onal 60%
50 000 40 000
30 000
20 000 10 000 Yr 2007 9 087 505 343 9 105 4 389 Yr 2008 13 545 1 158 1 071 13 129 6 599 Yr 2009 14 527 1 488 1 026 14 084 7 525 Yr 2010 17 677 2 599 1 788 17 106 9 296 Yr 2011 19 897 2 805 1 857 18 796 9 296
PCL 40%
Revenue Profit before tax Profit After Tax Total Assets Total Equity
223
Production capacity
180 2011 Sales
140 103
Beer 25%
Squash 13%
Actual production and sales are at 63% of capacity with the biggest lag from Minerals water and squashes Expansion of the brewery capacity in in progress
Macsteel
Supplies steel and roofing materials. 25% market share in Malawi
Shareholding
Press Corporation Ltd 80
Trends Analysis
2 425
390 248
186 105
255 166
311 217
300 Yr 2007
568 Yr 2008
580 Yr 2009
604 Yr 2010
681 Yr 2011
50%
50%
Ratio Analysis
50% 40% Yr 2007 Yr 2008 Yr 2009 Yr 2010 10% 0% Yr 2011
Gross profit margin Net profit Return on Return on Return on margin% assets % equity % capital
30% 20%
PTC
A retail chain formally jointly owned by PCL and Metro SA until recently when PCL bought out Metro SA.
Trend Analysis
16 000 14 000 12 000 10 000 8 000 6 000 Revenue Gross profit Profit After Tax Total Assets Equity
4 000
2 000 Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011
Has 89 outlets countrywide selling fast moving consumable and other non consumable goods. Adversely affected by poor macroeconomicenvironment
16% 4%
16% 4%
15% 3%
15% 3%
14% 2%
64%
106%
79%
63%
37%
15% 10%
18% 13%
14% 9%
14% 9%
11% 7%
Return on capital %
Mk'million
3 000
2 000 1 000 Yr 2008 (1 000) Yr 2009 Yr 2010 Yr 2011
300.0% 200.0% percentage 100.0% 0.0% -100.0% -200.0% Net profit Margin % Yr 2008 -174% 49% 0% 1% 0.4% Yr 2009 175% 23% 14% 21% 16.7% Yr 2010 61% 29% 12% 21% 14.1% Yr 2011 58% 34% 10% 16% 11.7%
Trend analysis
31 262 32 080 30 823 19 586 20 513 Revenue 2 929 6 328 5 630 4 703 2 958 14 128 13 385 13 941 13 648 20 572 Equity 3 821 1 569 1 367 278 1 095
Market share
Pemium Tama 13% Malawi Leaf 7%
Gross Profit
Total Assets
Production in Kgs
90 000 000
80 000 000
70 000 000 60 000 000 50 000 000 Year 2006 Year 2007 Year 2008 Year 2009 Year 2010 year 2011 Year 2012
T H E
THANK YOU
E N D
FOR
ATTENTION.
PCL MANAGEMENT