Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — FY2019 Earnings Presentation
20 slides from Golden Agri-resources's earnings presentation, Feb 28, 2020
Slide 1: Full Year 2019 Results Presentation
GOLDEN AGRI-RESOURCES LTD Full Year 2019 Results Presentation 28 February 2020 11
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Golden Agri‐Resources Ltd. (“GAR” or “Company”) for informational purposes, and may contain projections and forward looking statements that reflect the Company’s current views with respect to future events and financial performance. These views are b
Slide 3: Contents
CONTENTS 1 Executive Summary 4 2 Financial Highlights 6 3 Segmental Performance 10 4 Strategy and Outlook 14 5 Appendix 18 33
Slide 4: Executive Summary
EXECUTI VE SUMMARY gar agribusiness and food la ZF
Slide 5: Executive Summary: Improved results in fourth quarter 2019
EXECUTIVE SUMMARY Improved results in fourth quarter 2019 contributed by upstream and downstream performance EBITDA (US$ million) 391 398 • FY 2019 vs FY 2018 400 Revenue US$6,432 mn 10% EBITDA US$697 mn 22% 299 300 Underlying profit1 US$272 mn 50% 260 Palm product output 2.91 mn MT 4% CPO FOB price
Slide 6: Financial Highlights
FI NANCI AL HIGHLIGHTS gar agribusiness and food
Slide 7: Financial Performance
FINANCIAL PERFORMANCE US$ million FY 2019 FY 2018 YoY 4Q 2019 3Q 2019 QoQ Revenue 6,432 7,167 ‐10% 1,702 1,563 9% Gross Profit 831 1,007 ‐17% 299 188 59% EBITDA1 697 573 22% 392 107 267% Underlying Profit2 272 181 50% 284 3 n.m Net gain/(loss) from changes in fair value of biological assets3 0.3 ‐15
Slide 8: Financial Position
FINANCIAL POSITION US$ million 31‐Dec‐19 31‐Dec‐18 Change Total Assets 8,787 8,546 3% Cash and short‐term investments 784 545 44% Fixed assets1 3,720 3,716 0.1% Total Liabilities 4,274 4,236 1% Net Debt2 1,573 1,734 ‐9% Total debt3 3,144 3,010 4% Cash, short‐term investments and liquid working capit
Slide 9: Final Dividend
FINAL DIVIDEND The Board proposes final dividend distribution of 0.580 Singapore cents per share, subject to approval from shareholders, same with the previous year’s distribution Cash Dividend 2016 2017 2018 2019 Dividend per share (in S$ cents) 0.635 0.809 0.580 0.580 Total Dividend (in S$ million
Slide 10: Segmental Performance
SEGMENTAL PERFORMANCE gar agribusiness and food
Slide 11: Segmental Results: Plantations and Palm Oil Mills
SEGMENTAL RESULTS Plantations and Palm Oil Mills 4Q 2019 performance saw quarterly improvement with the rebound in CPO prices FY 2019 FY 2018 YoY 4Q 2019 3Q 2019 QoQ Revenue (US$ million) 1,324 1,451 ‐9% 394 356 11% EBITDA (US$ million) 299 391 ‐24% 132 70 88% EBITDA margin 23% 27% ‐4% 34% 20% 14% C
Slide 12: Oil Palm Plantations
OIL PALM PLANTATIONS Continued long‐term productivity growth through replanting and technological innovation Mature Area ‐ ha Planted Area ‐ ha Age Profile as of 31 Dec 2019 8% 497,587 498,395 12% 458,557 467,261 6% 39,030 104,751 103,480 59,436 31,189 101,757 101,436 356,800 365,825 392,836 394,915
Slide 13: Segmental Results: Palm, Laurics and Others
SEGMENTAL RESULTS Palm, Laurics and Others The integrated business model has helped GAR to weather low CPO prices FY 2019 FY 2018 YoY 4Q 2019 3Q 2019 QoQ Revenue (US$ million) 6,392 7,102 ‐10% 1,693 1,547 9% Sales Volume (‘000 tonnes) 10,843 10,210 6% 2,776 2,697 2.9% EBITDA (US$ million) 398 184 11
Slide 14: Strategy and Outlook
'Za\ Gar ZF gar and food STRATEGY AND OUTLOOK
Slide 15: Growth Strategy and Outlook
GROWTH STRATEGY AND OUTLOOK GAR continues to enhance its integrated operation capabilities to optimise profit opportunities and cash flow generation across the value chain Accelerated replanting Extending product and with higher‐yielding services portfolio, global seeds to sustain market reach and p
Slide 16: Indonesia Biodiesel
INDONESIA BIODIESEL Indonesia growing biodiesel mixture mandate is a major catalyst to the industry F Feedstock Use for Biodiesel in 2019E • Global feedstock for biodiesel grew by an estimated 10% in 2019 to 45.7 million MT and by another 4% in Others Soya oil 2020 22% 25% • Palm oil has the largest
Slide 17: Towards Responsible Palm Oil Production
TOWARDS RESPONSIBLE PALM OIL PRODUCTION On track to achieve 100% TTP for palm supply chain at end 2020 • Full TTP for 78% of palm supply chain at end 2019 • 90 third‐party mills reported full TTP; > 220 are doing TTP Managing fire and haze • With challenging 2019 fire season, around 0.5% of GAR area
Slide 18: Appendix
APPENDIX gar agribusiness and food
Slide 19: Age Profile
AGE PROFILE Immature and younger estates use newer‐generation higher‐yielding planting materials that will further boost production growth in the future Immature Young Prime 1 Prime 2 Old Total hectares (0‐3 years) (4‐6 years) (7‐18 years) (19‐25 years) (>25 years) 31 December 2019 Nucleus 36,036 29
Slide 20: Contact Us
CONTACT US If you need further information, please contact: Golden Agri‐Resources Ltd c/o 108 Pasir Panjang Road #06‐00 Golden Agri Plaza Singapore 118535 Telephone : +65 65900800 Facsimile : +65 65900887 www.goldenagri.com.sg Contact Person : Richard Fung richard@goldenagri.com.sg 20 20