Wilmar International Limited · SGX:F34
Wilmar International — Q1 2009 Earnings Presentation
29 slides from Wilmar International's earnings presentation, May 13, 2009
Slide 1: Wilmar International Limited 1Q09 Results Briefing
WILMAR INTERNATIONAL LIMITED 1Q09 RESULTS BRIEFING 13 MAY 2009 1
Slide 2: Important Notice
IMPORTANT NOTICE Information in this presentation 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 based on current assumptions which are subject to various risks and which may cha
Slide 3: Presentation Overview
PRESENTATION OVERVIEW • 1Q09 Financial Performance • Risk Management • Business Update • Questions & Answers 3
Slide 4: 1Q09 Financial Performance
1Q09 Financial Performance 4
Slide 5: Results Overview
Results Overview 1Q09 vs 1Q08 US$m U Revenue 4,958 - 31% Net profit 380 11% Earnings per share in US cents 6.0 11% (fully diluted) 5
Slide 6: Revenue
Revenue Revenue Volume US$ million million MT • Revenue 10,000 10 - down 31% mainly from lower prices of agricultural 7.5 commodities 8,000 7.5 8 - avg prices of major products : 7,141 palm & laurics down 6,000 6 40 – 50% yoy oilseeds & grains down 10-50% yoy 4,958 4,000 4 • Volume - flat despite ec
Slide 7: Revenue by Business Segment
Revenue by Business Segment 1Q08 1Q09 4.5% 3.8% 5.4% Plantations & 2.3% Plantations & Others palm oils mills Others palm oils mills 18.2% 16.6% Consumer Consumer products products 42.2% 23.3% 32.0% Palm & laurics Oilseeds 51.7% Oilseeds & grains Palm & laurics & grains * Before elimination of inter-
Slide 8: Net Profit
Net Profit US$’million 500 • Up 11% yoy 400 • Driven by improved 380.0 margins from palm & 343.0 laurics and consumer 300 products. 200 100 0 1Q08 1Q09 8
Slide 9: Profit Before Tax by Business Segment
Profit Before Tax by Business Segment US$' million 1Q09 1Q08 ∆ Merchandising & Processing 385.3 330.5 17% Palm & laurics 216.2 125.7 72% Oilseeds & grains 169.1 204.8 -17% Consumer Products 78.1 16.0 389% Plantations & Palm Oil Mills 62.7 85.2 -26% Others (14.3) 31.2 -146% Associates 12.7 27.5 -54%
Slide 10: Profit Before Tax – Contribution By Business Segment
Profit Before Tax – Contribution By Business Segment US$' million 1Q09 1Q08 Merchandising & Processing 73.4% 67.4% Palm & laurics 41.2% 25.6% Oilseeds & grains 32.2% 41.8% Consumer Products 14.9% 3.3% Plantations & Palm Oil Mills 12.0% 17.4% Others -2.7% 6.3% Associates 2.4% 5.6% Total 100.0% 100.0%
Slide 11: (A) Plantations & Palm Oil Mills
(A) Plantations & Palm Oil Mills US$ million 1Q09 1Q08 ∆ Revenue 211.0 357.7 -41% Profit before tax 62.7 85.2 -26% Planted area (ha) 225,239 210,440 7% Mature area harvested (ha) 151,876 137,737 10% FFB production (MT) 682,198 694,685 -2% FFB Yield (MT/ha) 4.5 5.0 -10% Mill Production Crude Palm Oil
Slide 12: Plantation Age Profile
Plantation Age Profile in hectares Average Age of Palm 31 Mar 2009 0 to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Indonesia 60,307 36,568 35,292 19,343 11,560 163,070 Malaysia 2,904 7,766 25,687 17,906 7,906 62,169 Total planted area 63,211 44,334 60,979 37,249 19,466 225,239 % of total pla
Slide 13: (B) Merchandising & Processing - Palm & Laurics
(B) Merchandising & Processing - Palm & Laurics 1Q09 1Q08 ∆ Revenue (US$ million) 2,361 4,123 -43% Sales volume (‘000 MT) 3,921 4,641 -16% Profit before tax (US$ million) 216.2 125.7 72% Profit before tax per MT (US$/MT) 55.15 27.09 104% • Profit growth attributable primarily to improved margins. •
Slide 14: (C) Merchandising & Processing – Oilseeds & Grains
(C) Merchandising & Processing – Oilseeds & Grains 1Q09 1Q08 ∆ Revenue (US$ million) 1,788 1,853 -4% Sales volume (‘000 MT) 3,595 2,884 25% Profit before tax (US$ million) 169.1 204.8 -17% Profit before tax per MT (US$/MT) 47.03 71.02 -34% • Profit decline from lower margins. • Volume – up 25% on th
Slide 15: (D) Consumer Products
(D) Consumer Products 1Q09 1Q08 ∆ Revenue (US$ million) 926 1,454 -36% Sales volume (‘000 MT) 734 868 -15% Profit before tax (US$ million) 78.1 16.0 389% Profit before tax per MT (US$/MT) 106.40 18.40 478% • Profit surge owing to significantly firmer margins. • Sales volume – 15% lower as volume in
Slide 16: Low Gearing
Low Gearing As at As at US$ million 31 Mar 09 31 Dec 08 Debt/Equity (x) 0.23 0.25 - Net Debt 2,322 2,390 - Shareholders' funds 9,916 9,606 Adjusted Debt/Equity (x) 0.07 0.10 - Liquid working capital * 1,607 1,408 - Adjusted Net Debt 715 983 Interest coverage (x) # 10.0 7.6 * Liquid working capital =
Slide 17: Robust Funding & Strong Liquidity
Robust Funding & Strong Liquidity As at 31 Mar 09 US$ million Available Utilised Balance Credit facilities : Committed 1,802 1,640 162 Trade finance 10,015 3,141 6,874 Short term 807 148 659 Total credit facilities 12,624 4,929 7,695 Available cash (not pledged) 1,308 Total liquidity 9,003 • 64% of
Slide 18: Strong Cashflow
Strong Cashflow 3 mths ended Year ended 31 Mar 09 31 Dec 08 Operating cashflow (US$ million) 307 3,231 Turnover days - Inventory 56 43 - Trade Receivables 23 16 - Trade Payables 20 14 • Strong operating cashflow from improved financial performance. • Cash conversion cycle of ~ 60 days. 18
Slide 19: Key Indicators
Key Indicators 3 mths ended Year ended 31 Mar 09 * 31 Dec 08 Return on Average Equity 15.6% 17.5% Return on Average Capital Employed 14.3% 15.7% Return on Average Assets 8.5% 9.2% in US cents EPS (fully diluted) 6.0 24.0 NTA per share 93.2 88.7 NAV per share 155.3 150.4 in Singapore cents Dividends
Slide 20: Results Summary
Results Summary US$ million 1Q09 1Q08 U Revenue 4,958 7,141 -31% Net Profit 380 343 11% EPS in US cents (fully diluted) 6.0 5.4 11% US$ million 31 Mar 09 31 Dec 08 U Shareholders’ funds 9,916 9,606 3% NAV per share in US cents 155.3 150.4 3% Total Assets 17,697 17,869 -1% Gearing 0.23x 0.25x -6% 20
Slide 21: Risk Management
Risk Management 21
Slide 22: Risk Management
Risk Management Commodities Credit Risk Price Risk Risk Governance Structure Foreign Exchange Interest Rate Risk Risk 22
Slide 23: Risk Governance Structure
Risk Governance Structure Board-level Risk Management Committee (RMC) - Chaired by Lead Independent Director - Oversees ERC Independent - Reviews overall risk management guidelines/ Middle Office framework, policies & systems - Captures and - Reviews & approves enterprise risk limits/ measures Group
Slide 24: Business Update
Business Update 24
Slide 25: Shareholding Structure (Post WHPL Liquidation)
Shareholding Structure (Post WHPL Liquidation) As at Post 1 April 2009 Liquidation Kuok Group 31.2% 31.2% The liquidation exercise will increase the WHPL 29.4% -* liquidity and free float of Wilmar shares. Possible ADM 10.4%** 16.1% weighting increase in major stock indices. Currently Public 17.7% 2
Slide 26: Looking Forward
Looking Forward • Global economic outlook remains uncertain • Asia’s growth prospects, especially China and India, continues to be positive • Resilient demand for food & agri commodities • Well-positioned for growth: – Continue to invest in core businesses and newer markets – Emphasis on growth in C
Slide 27: Evaluate Listing of China Operations
Evaluate Listing of China Operations • Growing demand for high quality processed agricultural commodities and consumer products due to rising affluence & rapid urbanisation in China • Capitalise on strong competitive advantage: – Large scale integrated manufacturing operations in many locations – Ex
Slide 28: Evaluate Listing of China Operations
Evaluate Listing of China Operations • 20 years track record in China • Well established brands for consumer and industrial products • Strong leadership position: ¾ #1 oilseeds crusher ¾ #1 edible oils processor ¾ #1 consumer pack oils merchandiser ¾ #1 specialty fats and oleochemicals manufacturer
Slide 29: Questions & Answers
Questions & Answers 29