$JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) AGM 2024 Summary

1. How does the new minimum wage hike, CPO export tax, and revised windfall profit levy impact the company?
a. The new CPO export tax does not negatively impact the company because they sell CPO locally.
b. Revised windfall profit levy is favourable to the planters. Using FY2024 sales as an example, the revised levy would have saved the company up to RM 5mil.
c. Increment in minimum wage would have minimal impact to the group as only a small portion (<10%) of the workforce is at minimum wage levels.
d. The group will continue to reduce dependency on manpower by investing in technologies which can improve operational efficiencies and productivity.

2. What are the estimated replanting costs?
a. About RM 18mil, 25mil, and 32mil in FY 25, 26, and 27 respectively, to clear and plant about 2000-4000 ha per year.

3. The company raises their own seedlings in their in house nursery, and is expected to have an oil yield of between 3.5-4.5 MT per ha.

4. Fertilizer cost is budgeted at about RM 120mil for FY25-27.

5. Over 90% of FFB are sourced from own estates, while <10% of FFB were bought from external.

6. Timber division breakeven price is about RM 700 per m3 of logs. For now, the company is not focusing on the log business unless opportunity arises.

7. What are the company’s plans for future cash since no more new lands are allowed to be opened for oil palm plantations?
a. Capex allocated for replanting as mentioned before.
b. Any potential new businesses if the opportunity arises.
c. Reward shareholders with dividends depending on performance and cash flow.

8. Forward selling of CPO?
a. The company’s ASP is typically based on MPOB average price. Nevertheless, sometimes the company does engage in forward selling if the market prices are favourable.

9. So far, the company has done about 94% of the targeted YTD FFB production. For reminder, the full year FY2025 budgeted FFB production is 1,211,852 MT.

10. RPT between the company and Borneo Edible Oils; any contracts? Does the price follow market?
a. No contractual agreements. Pricing is based on market prices.

11. Why did the company acquire wealth houses development?
a. To expand total plantation land bank. 55% stake to own controlling interest, so that the company can make decisions regards to management of the land.

12. Why no sharebuybacks?
a. Company believes dividend to be a better way of rewarding shareholders than share buybacks.

13. The company believes that FY2025 is expected to be another good year for Jtiasa.