Eng - IOI Group

INTRODUCTION
The purpose of this review is to highlight and provide brief insights on key financial and operating information at Group level. A more detailed
commentary on operating performance is covered under the respective business segment reports.
KEY FINANCIAL INDICATORS
FY2011 FY2010 Change
%
Earnings before interest and taxation (“EBIT”) RM million 2,815.6 2,636.3 7
Pre-tax earnings RM million 2,863.6 2,550.6 12
Net earnings RM million 2,222.9 2,035.7 9
Return on average equity (“ROE”) % 19.5 21.3 (8)
Return on average capital employed (“ROCE”) % 14.0 14.3 (2)
Net operating profit after taxation (“NOPAT”) RM million 2,417.9 2,231.0 8
Economic profit RM million 713.4 386.6 85
Total return to shareholders
- Change on share price (per RM0.10 share) RM 0.29 0.29 –
- Gross dividend (per RM0.10 share) sen 17.0 17.0 –
Net cash flow generated from operations RM million 909.7 2,008.6 (55)
Net gearing % 21.8 8.2 167
FINANCIAL HIGHLIGHTS & INSIGHTS
• At Group level, the results for FY2011 versus FY2010 is best compared and explained at three levels, mainly, EBIT, Pre-tax and Net
Earnings, as different factors affected the changes between the two fiscal years at the respective levels.
• Looking at EBIT, contributions from the segments are as follows:
FY2011 Mix FY2010 Mix Change
RM million % RM million % %
Plantation 1,497.8 53 1,126.2 43 33
Downstream manufacturing 404.3 14 568.6 21 (29)
Palm oil - Total 1,902.1 67 1,694.8 64 12
Property 719.1 26 602.9 23 19
Others (unallocated) 194.4 7 338.6 13 (43)
EBIT 2,815.6 100 2,636.3 100 7
• Plantation segment’s EBIT increased by 33% to RM1,497.8 million, contributed by higher CPO and PK prices realised.
• The downstream manufacturing segment’s EBIT decreased by 29% to RM404.3 million. The lower profit is due mainly to lower sales and
lower margins from all sub-segments.
• The property segment’s registered an increase of 19% in EBIT to RM719.1 million, attributed mainly to gain on disposal of investment
properties amounting to RM63.0 million, gain on compensation received in respect of compulsory acquisition of land amounting to
RM24.3 million and higher fair value gain from investment properties amounting to RM93.0 million (FY2010 – RM21.0 million).
• The “unallocated segment” in respect of both financial years comprises primarily the gain or loss on translation difference on foreign
currency denominated borrowings with gain of RM215.4 million and RM395.8 million registered in FY2011 and FY2010 respectively and
net fair value loss of RM83.2 million in FY2011 arising from adoption of FRS 139.
annual report 2011 • ioi corporation berhad
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