Mewah International Inc. · SGX:MV4
Mewah International — Q3 2011 Earnings Presentation
26 slides from Mewah International's earnings presentation, Nov 11, 2011
Slide 1: Q3 2011 Financial Results Briefing
Mewah International Inc. Q3 2011 Financial Results Briefing 11th November 2011 S Global Brands Local Favourites
Slide 2: Cautionary note on forward looking statements
Cautionary note on forward looking statements This presentation, as well as Financial statements appended herewith should be read in conjunction with Mewah International Inc.’s Unaudited Financial Statements for the third quarter and nine month ended 30 September 2011 lodged on the SGXNET on 11th No
Slide 3: Our Financial Performance
() Mewah Our Financial Performance
Slide 4: Financial highlights – Q3 2011 (vs Last Quarter)
Financial highlights – Q3 2011 (vs Last Quarter) In US$ millions, unless stated otherwise Q3 2011 Q2 2011 Q-O-Q Change Sales volume 893.5 981.2 -8.9% (Thousand MT) Sales revenue 1,090.6 1,247.4 -12.6% Operating margin 25.8 22.6 14.1% Operating margin per MT 28.9 23.1 25.1% (US$ ) Profit after tax 6.
Slide 5: Financial highlights – Q3 2011 (vs Last year)
Financial highlights – Q3 2011 (vs Last year) In US$ millions, unless stated otherwise Y-O-Y Q3 2011 Q3 2010 Change Sales volume 893.5 948.5 -5.8% (Thousand MT) Sales revenue 1,090.6 849.7 28.3% Operating margin 25.8 48.1 -46.3% Operating margin per MT 28.9 50.8 -43.1% (US$ ) Profit after tax 6.5 21
Slide 6: Financial highlights – 9M 2011
Financial highlights – 9M 2011 In US$ millions, unless stated otherwise Y-O-Y 9M 2011 9M 2010 Change Sales volume 2,731.1 2,857.7 -4.4% (Thousand MT) Sales revenue 3,453.3 2,473.0 39.6% Operating margin 85.0 117.9 -27.9% Operating margin per MT 31.1 41.3 -24.7% (US$ ) Profit after tax 29.6 56.3 -47.
Slide 7: Sales Volumes – Q3 2011
Sales Volumes – Q3 2011 In Thousand Metric Tonnes 981.2 948.5 893.5 893.5 228.2 203.6 229.7 229.7 753.1 744.9 663.8 663.8 Q2 2011 Q3 2011 Q3 2010 Q3 2011 Q-O-Q Y-O-Y Bulk Consumer Pack Sale Volume % change Q-O-Q Y-O-Y Total - 8.9% - 5.8% Bulk -11.9% -10.9% Consumer Pack + 0.7% +12.8% 6
Slide 8: Sales Volumes – 9M 2011
Sales Volumes – 9M 2011 In Thousand Metric Tonnes 2,857.7 2,731.1 629.1 654.3 2,228.6 2,076.8 9M 2010 9M 2011 Bulk Consumer Pack Sale Volume % change Y-O-Y Total - 4.4% Bulk - 6.8% Consumer Pack +4.0% 7
Slide 9: Sales Revenue – Q3 2011
Sales Revenue – Q3 2011 In US$ millions 1,247.4 1,090.6 1,090.6 342.2 332.8 849.7 332.8 230.5 905.1 757.8 757.8 619.2 Q2 2011 Q3 2011 Q3 2010 Q3 2011 Q-O-Q Y-O-Y Bulk Consumer Pack Sale Revenue % change Q-O-Q Y-O-Y Total -12.6% +28.3% Bulk -16.3% +22.4% Consumer Pack - 2.7% +44.4% 8
Slide 10: Sales Revenue – 9M 2011
Sales Revenue – 9M 2011 In US$ millions 3,453.3 966.1 2,473.0 672.5 2,487.2 1,800.5 9M 2010 9M 2011 Bulk Consumer Pack Sale Revenue % change Y-O-Y Total +39.6% Bulk +38.1% Consumer Pack +43.7% 9
Slide 11: Sales Revenue: Geographical distribution
Sales Revenue :Sales Geographical spreadGeographical distribution Revenue: FY2010 FY2010 9M 2011 Q3 2011 Ex Malaysia/Singapore vs Destination Destinations Destinations Destinations 45% 45% Ex 48% Ex Malaysia/ Ex Malaysia/ Malaysia/ Singapore Singapore Singapore 52% 55% 55% Europe/ Europe/ Europe/ Am
Slide 12: Sales Revenue: Segmental Geography
Sales Revenue :Sales Segmental Geography Revenue: FY2010 Geographical distribution FY2010 9M 2011 Q3 2011 Rest of World Rest of Rest of Africa Africa 6% World 0% Middle East Africa World 0% 8% Middle East 7% 0% Middle East 8% Bulk 10% 9% Rest of Asia Rest of Asia 11% 13% Rest of Asia Malaysia/ Malay
Slide 13: Operating Margins – Q3 2011
Operating Margins – Q3 2011 In US$ millions, unless stated otherwise Operating Margin: US$25.8 million for Q3 2011 Consumer pack contributed 29.8% of total OM in Q3 2011 (Q3 2010: 48.9%) 48.1 23.5 25.8 25.8 22.6 7.7 7.7 9.3 24.6 13.4 18.1 18.1 Q2 2011 Q3 2011 Q3 2010 Q3 2011 Q-O-Q Y-O-Y Bulk Consume
Slide 14: Operating Margins: 9M 2011
Operating Margins: 9M 2011 In US$ millions, unless stated otherwise 117.9 52.1 85.0 32.0 65.8 53.0 9M 2010 9M 2011 Bulk Consumer Pack Operating Margin per MT 9M 2010 9M 2011 Total US$41.3 US$31.1 Bulk US$29.5 US$25.5 Consumer Pack US$82.8 US$48.9 13
Slide 15: Profit after tax (attributable to equity holders of the Company)
Profit after tax (attributable to equity holders of the Company) In US$ millions, unless stated otherwise 21.0 6.0 6.5 6.5 Q2 2011 Q3 2011 Q3 2010 Q3 2011 Q-O-Q Y-O-Y % change Q-O-Q Y-O-Y Profit after tax +7.8% -69.0% 14
Slide 16: Profit after tax (attributable to equity holders of the Company)
Profit after tax (attributable to equity holders of the Company) In US$ millions, unless stated otherwise 56.3 29.6 9M 2010 9M 2011 % change Y-O-Y Profit after tax -47.5% 15
Slide 17: Balance Sheet
Balance Sheet In US$ millions 31 December 2010 30 June 2011 30 September 2011 Fixed Investments 223.2 264.1 268.4 Inventories 244.0 271.1 206.3 Trade Receivables 427.1 480.1 458.9 Trade Payables (252.8) (218.0) (173.7) Other Current Assets/(Liabilities) (21.5) 19.4 14.0 Working Capital 396.8 552.6 5
Slide 18: Balance Sheet
Balance Sheet In US$ millions, unless stated otherwise US$854.1 US$854.1 (2010: US$760.6) (2010: US$760.6) Adj Net Debt 327.9 38% Working Capital 505.5 (2010: 251.4) 60% (2010: 396.8) Cash (IPO proceeds) 80.2 (2010: 140.6) 9% 526.2 Equity 62% (2010: 509.2) Fixed Investments 268.4 31% (2010: 223.2) I
Slide 19: Gearing
Gearing Debt to equity 0.88 0.84 0.64 FY 2010 Q2 2011 Q3 2011 Adj. Net debt to equity: Objective: Keep below 1.5 (based on weighted average of 1:1 for Fixed Investment 2:1 for Current Investments) 0.75 0.62 0.49 FY 2010 Q2 2011 Q3 2011 18
Slide 20: Debt and Interest Coverage
Debt and Interest Coverage Debt Coverage 31 December 2010 30 June 2011 30 September 2011 Working Capital 396.8 552.6 505.5 Adj Net Debt 251.4 398.6 327.9 Adj Net Debt Coverage 1.6 x 1.4 x 1.5 x In US$ millions, unless stated otherwise Interest Coverage FY 2010 9M 2011 Q3 2011 EBITDA 132.3 49.8 11.9
Slide 21: Liquidity
Liquidity Facility Utilised % Balance Trade Finance 819.1 414.2 50.6 404.9 Cash (Free) 112.6 Total Liquidity 517.5 In US$ millions, unless stated otherwise Adequate trade finance credit with utilisation of 51% of total credit lines 94% of borrowings are trade finance, backed by inventories and trade
Slide 22: Cycle time
Cycle time Receivable days Payable days 44 37 36 (17) (14) (28) 2010 Q2 2011 Q3 2011 2010 Q2 2011 Q3 2011 Inventory days Cycle time 43 41 39 27 21 17 2010 Q2 2011 Q3 2011 2010 Q2 2011 Q3 2011 21 Cycle time is calculated as receivable days + inventory days – payable days
Slide 23: Our Strategy and expansion plans
Our Strategy and expansion plans 22
Slide 24: Our Strategy
Our Strategy Global, integrated Global, integrated palm based edible oils Consumer Products and fats business Business 1. Further consolidate the position in palm based oils and fats business 2. Expand range of Consumer products 4. Invest in efficient production 3. Broaden and deepen merchandising,
Slide 25: Our Expansion Plans
Our Expansion Plans Capacity Expected Expected Location MT p.a. Cost Project Completion (based on 350 days) (US$ million) CBS Plant Westport, Selangor, Malaysia 126,000 50 Q4 2011 (increase in capacity) CBS Plant Pasir Gudang, Johor, Malaysa 84,000 55 Q4 2011 Soap Plant (Value addition to by-product
Slide 26: Thank you
Thank you Any questions, contact: Rajesh Chopra, Group Chief Financial Officer Ph: (65) 9710 2773 | mail: rajesh@mewahgroup.com 25