Wilmar International Limited · SGX:F34
Wilmar International — Q1 2010 Earnings Presentation
26 slides from Wilmar International's earnings presentation, May 12, 2010
Slide 1: Wilmar International Limited 1Q10 Results Briefing
WILMAR INTERNATIONAL LIMITED 1Q10 RESULTS BRIEFING 12 MAY 2010 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 • 1Q10 Financial Performance • Risk Management • Business Update • Questions & Answers 3
Slide 4: 1Q10 Financial Performance
1Q10 Financial Performance 4
Slide 5: Results Overview
Results Overview 1Q10 vs 1Q09 US$m Revenue 6,764 36% Net profit 401 6% Earnings per share in US cents 6.0 - (fully diluted) 5
Slide 6: Revenue
Revenue Revenue Volume US$’million ‘million MT 10,000 9.1 10.0 • 1Q10 vs 1Q09 - revenue up 36%, driven by both 7.5 higher sales volume 8,000 8.0 and average selling prices - volume up 21%, stronger palm & 6,000 6.0 laurics and oilseeds 6,764 & grains volume 4,958 4,000 4.0 2,000 2.0 0 0.0 1Q09 1Q10
Slide 7: Net Profit
Net Profit US$’million 800 • 1Q10 vs 1Q09 - Up 6% - Better profit from oilseeds & grains and 600 associates and lower effective tax rate, which dropped from 21.7% to 16.5% 400 380.0 401.0 200 0 1Q09 1Q10 7
Slide 8: Pretax Profit Growth by Business Segment
Pretax Profit Growth by Business Segment US$' million 1Q10 1Q09 ∆ Merchandising & Processing 332.9 385.3 -14% Palm & laurics 150.9 216.2 -30% Oilseeds & grains 182.0 169.1 8% Consumer Products 46.5 78.1 -41% Plantations & Palm Oil Mills 65.1 62.7 4% Others 19.7 (14.3) n.m Associates 33.9 12.7 167% U
Slide 9: Pretax Profit Contribution by Business Segment
Pretax Profit Contribution by Business Segment USD’ million 511.8 -65.3 12.9 -31.6 34 464.2 2.4 * Exclude Share of results of associates & unallocated income/(expenses)
Slide 10: Profit Before Tax – Contribution By Business Segment
Profit Before Tax – Contribution By Business Segment 1Q10 1Q09 Merchandising & Processing 66.8% 73.4% Palm & laurics 30.3% 41.2% Oilseeds & grains 36.5% 32.2% Consumer Products 9.3% 14.9% Plantations & Palm Oil Mills 13.1% 12.0% Others 4.0% -2.7% Associates 6.8% 2.4% Total 100.0% 100.0% * Excluding
Slide 11: Plantations & Palm Oil Mills
(A) Plantations & Palm Oil Mills 1Q10 1Q09 ∆ Revenue (US$ million) 272.4 211.0 29% Profit before tax (US$ million) 65.1 62.7 4% Planted area (ha) 236,004 225,239 5% Mature area harvested (ha) 172,357 151,876 13% FFB production (MT) 724,024 682,198 6% FFB Yield (MT/ha) 4.2 4.5 -7% Mill Production Cru
Slide 12: Plantation Age Profile
Plantation Age Profile in hectares Average Age of Palm 31 Mar 2010 0 to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Indonesia 30,647 68,544 39,237 19,308 16,201 173,937 Malaysia 962 7,204 22,439 17,128 14,334 62,067 Total planted area 31,609 75,748 61,676 36,436 30,535 236,004 % of total plan
Slide 13: Merchandising & Processing - Palm & Laurics
(B) Merchandising & Processing - Palm & Laurics 1Q10 1Q09 ∆ Revenue (US$ million) 3,670 2,361 56% Sales volume (‘000 MT) 5,038 3,921 29% Profit before tax (US$ million) 150.9 216.2 -30% Profit before tax per MT (US$/MT) 30.0 55.1 -46% • Sales volume rose 29% as the Group capitalised on its wide dist
Slide 14: Merchandising & Processing – Oilseeds & Grains
(C) Merchandising & Processing – Oilseeds & Grains 1Q10 1Q09 ∆ Revenue (US$ million) 2,176 1,788 22% Sales volume (‘000 MT) 4,032 3,595 12% Profit before tax (US$ million) 182.0 169.1 8% Profit before tax per MT (US$/MT) 45.1 47.0 -4% • Sales volume grew 12% due to commencement of new plants for oil
Slide 15: Consumer Products
(D) Consumer Products 1Q10 1Q09 ∆ Revenue (US$ million) 1,074 926 16% Sales volume (‘000 MT) 849 734 16% Profit before tax (US$ million) 46.5 78.1 -41% Profit before tax per MT (US$/MT) 54.7 106.4 -49% • Sales volume was up16% on higher edible oils consumption in China and sales of new consumer prod
Slide 16: Low Gearing
Low Gearing As at As at US$ million 31 Mar 10 31 Dec 09 Debt/Equity (x) 0.44 0.41 - Net Debt 4,973 4,445 - Shareholders' funds 11,373 10,931 Adjusted Debt/Equity (x) 0.06 0.06 - Liquid working capital * 4,300 3,764 - Adjusted Net Debt 673 681 Interest coverage (x) # 48.5 52.8 * Liquid working capita
Slide 17: Funding & Liquidity
Funding & Liquidity As at 31 Mar 10 US$ million Available Utilised Balance Credit facilities : Committed 1,373 1,240 133 Trade finance 16,047 9,069 6,978 Short term 861 518 343 Total credit facilities 18,281 10,827 7,454 Available free cash 692 Total liquidity 8,146 • 84% of utilised facilities were
Slide 18: Cashflow
Cashflow 3 mths ended Year ended 31 Mar 10 31 Dec 09 Operating cashflow (US$ million) (148) (520) Turnover days - Inventory 60 56 - Trade Receivables 29 25 - Trade Payables 11 15 • Negative operating cashflow due to increase in working capital requirements • Higher trade receivables resulted in high
Slide 19: Key Indicators
Key Indicators 3 mths ended Year ended 31 Mar 10 * 31 Dec 09 Return on Average Equity 14.4% 18.3% Return on Average Capital Employed 13.6% 17.0% Return on Average Assets 6.6% 9.1% in US cents EPS (fully diluted) 6.0 27.4 NTA per share 115 108 NAV per share 178 171 in Singapore cents Dividends (inter
Slide 20: Risk Management
Risk Management 20
Slide 21: Risk Management
Risk Management Commodities Credit Risk Price Risk Risk Governance Structure Foreign Exchange Interest Rate Risk Risk 21
Slide 22: 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 23: Business Update
Business Update 23
Slide 24: Shareholding Structure
Shareholding Structure (Post WHPL Liquidation) As at Post 31 Mar 2010 Liquidation Kuok Group 31.0% 31.0% The liquidation WHPL 29.3% -* exercise will increase the liquidity and free ADM 10.4%** 16.1% float of Wilmar shares. Possible weighting increase Public 19.5% 29.5% in major stock indices Non-pub
Slide 25: Looking Forward
Looking Forward • Positive on the prospects of Asian economies, especially China, India and Indonesia • Growing demand for high quality processed agricultural and consumer products due to rising affluence & rapid urbanisation in China • Wilmar is well-positioned due to: – Investment in core business
Slide 26: Questions & Answers
Questions & Answers 26