Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Halcyon Agri — FY2021 Earnings Presentation
27 slides from Singapore Exchange's earnings presentation, Feb 28, 2022
Slide 1: H2 and Full-year 2021 Results Presentation
H2 and Full-year 2021 Results Presentation 28 February 2022
Slide 2: Important Notice
Important Notice This presentation has been prepared by Halcyon Agri Corporation Limited (“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 ar
Slide 3: Financial highlights
Financial highlights
Slide 4: FY2021 key financial highlights
FY2021 key financial highlights (Year-on-year comparison against FY2020) Volume Average selling price Gross profit 1,372,241 mT US$1,793 US$162.9m +15.7% +24.5% +60.4% Net profit US$17.1m Reverses prior year loss EBITDA1 Term debt to equity2 Operating profit US$55.8m 0.67x US$36.1m + 835.0% Reduced
Slide 5: H2 2021 results review – Continued positive momentum to deliver strong performance
H2 2021 results review – Continued positive momentum to deliver strong performance For the half year ended 31 December H2 2021 H2 2020 ▲% Factors • The Group benefited from the strong demand recovery Sales volume (mT) 714,607 656,115 8.9% momentum in FY2021. Average selling price (US$/mT) 1,830 1,43
Slide 6: FY2021 results review – Continued positive momentum (cont'd)
FY2021 results review – Continued positive momentum to deliver strong performance (cont’d) For the full year ended 31 December FY2021 FY2020 ▲% Factors • On the back of increased downstream demand, volumes back to pre- Sales volume (mT) 1,372,241 1,186,515 15.7% COVID levels. Average selling price (
Slide 7: Overview of Group's performance
Overview of Group’s performance Sales volume (MT) 714,607 666,710 656,115 657,634 1,372,241 1,279,201 1,186,515 530,401 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 FY2019 FY2020 FY2021 EBITDA by segment (US$m) 55.8 30.3 37.5 18.3 22.4 15.3 6.0 (7.9) (9.3) 3.8 3.5 19.1 30.9 3.8 11.7 5.3 2.5 (1.0) 31.7 23
Slide 8: Halcyon Rubber Company (HRC)
Halcyon Rubber Company (HRC) • HRC Group has tapped on the Revenue (US$m)1 Sales Volume (mT)1 surging demand in tyre sector 2,000 549,341 to capture more market share. 497,494 488,434 508,128 448,572 • Production volume of HRC’s 1,500 969.6 393,032 867.3 factories increased from 1,000 724.9 680.6 76
Slide 9: CMC International (CMCI)
CMC International (CMCI) Revenue (US$m)1 Sales Volume (mT)1 2,500 384.3 194,273 2,000 326.9 185,770 192,778 188,680 302.6 176,002 292.3 285.8 161,140 1,500 247.5 1,000 • Much improved demand from customers in destination 500 market (especially in USA and 0 Europe). H1 2019 H2 2019 H1 2020 H2 2020 H1
Slide 10: CMC Plantations (CMCP)
CMC Plantations (CMCP) Revenue (US$m)1 Sales Volume (mT)1 • The main reason of the improvement in the results in 2,000 13,649 CMCP is the increasing 25.0 12,332 11,460 plantation yields, following 1,500 17.3 18.4 8,258 maturity of the plantations. 14.6 7,262 1,000 5,727 9,904 12,206 10.6 8.4 10,805
Slide 11: Balance sheet overview
Balance sheet overview US$ in millions 31-Dec-21 30-Jun-21 31-Dec-20 Note 1: Please refer to the announcement for the definition of the captions in the tables Assets partially funded by debt displayed above. Total net working capital employed 720.7 665.4 652.6 Note 2: Translated at the closing excha
Slide 12: Cash flows
Cash flows Half year ended 31 Dec FY ended 31 Dec US$m 2021 2020 2021 2020 Operating cash flows before working capital changes 19.2 21.5 40.4 28.0 Changes in working capital (47.1) (127.8) (74.8) (36.4) Tax (payment)/refund (0.1) 4.7 (0.3) 6.9 Cash flow used in operating activities (27.9) (101.6) (3
Slide 13: Business and operational highlights
Business and operational highlights
Slide 14: Our global footprint allows us to serve our customers effectively
Our global footprint allows us to serve our customers effectively Latex tanks in Terneuzen, The Netherlands Plantations operations Factory locations Distribution offices and logistics assets Newly commissioned latex factory in Sudcam PT Hok Tong Palembang factory in Indonesia FY2021 production volum
Slide 15: Plantations business – investing for the future
Plantations business – investing for the future Group Plantation Profile1 (ha) Plantation yields2 (mT) Plantation Capex3 (US$m) Average age of trees (Years) Cumulative total since 31,420 Cameroon * Malaysia 7.5 4.3 20,071 H1 2019 Ivory Coast 17.7 19.6 94.9 1,822 16,459 17.8 14,165 16.5 13,404 1,758
Slide 16: Plantations business – investing for the future (contd)
Plantations business – investing for the future (contd) Current 2025 2030 c.18,249 mT c.40,000 mT c.55,000 mT Yields (2.0 mT per mature hectare)* (7.5 years average tree age)* When the yields increase, fixed costs will be absorbed better and unit Unit costs cost decrease. Profits When unit cost decr
Slide 17: Plantations business – investing for the future (contd)
Plantations business – investing for the future (contd) Rubber Prices Trend – Historical Chart SICOM TSR20 1st Position (US$ per MT) 7,000 6,000 5,000 4,000 On the cusp of 3,000 recovery! 2,000 1,000 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 201
Slide 18: Strong institutional support in funding initiatives
Strong institutional support in funding initiatives The Group has embarked on a series of funding initiatives since FY2020, to strengthen its capital structure and improve its operating liquidity. Highlights below: Strong • US$200 million perpetual securities issued on November institutional 2020 wa
Slide 19: Enhancing capital structure through deleveraging
Enhancing capital structure through deleveraging One of the key corporate objectives of the Group is to deleverage. The proceeds raised through the disposal of non- core assets will strengthen the Group’s capital structure, and improve its operating liquidity. Disposal of lands in Ivory Coast • TRCI
Slide 20: Capitalising key trends - ESG & Digitalisation
Capitalising key trends - ESG & Digitalisation • Ranked most transparent rubber producing company in 2021 SPOTT assessment. Our unwavering • Obtained Ecovadis Gold Medal in Oct 2020. commitment to • Initiated Cameroon Outgrower Programme, which aims to ESG and benefit 13,000 landowners and reforest
Slide 21: Industry outlook
Industry outlook
Slide 22: Overview of movement in SICOM TSR20 1st position
Overview of movement in SICOM TSR20 1st position 2,200 FY2022 FY2020 FY2021 2,000 1,800 1,600 1,400 1,200 1,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average Q1 2020: US$1,333; Average Q2 2020: US$1,108; Average Q3 2020: US$1,280; Average Q4 2020: US$1,544; Average Q1 2021: US$1,672 Averag
Slide 23: Industry Outlook – Long Term
Industry Outlook – Long Term Demand > Supply = Price upcycle! Projected natural rubber consumption New rubber planting per annum (in '000 MT) (in '000 hectares) 18,000 Total Traditional origins Non-traditional origins 700 17,000 600 16,000 500 400 15,000 300 14,000 200 13,000 100 0 12,000 2019 2020
Slide 24: Key messages
Key messages
Slide 25: Our vision
Our vision Our vision is to be the leading natural rubber global franchise, leveraging our globally integrated platform in advocating for ESG practices across the supply chain, and effecting meaningful change in the industry. Our Pillar of 360° Excellence outlines the key priority areas in facilitat
Slide 26: Highlights of Our Pillar of 360° Excellence
Highlights of Our Pillar of 360° Excellence • Numerous accolades • Collaborated closely with our recognising our sustainability customers in navigating the achievements. global supply chain disruption. • Launched Cameroon • Delivered volumes represent Outgrower Programme. 10% of global natural rubbe
Slide 27: Thank you!
Thank you! Follow us on social media! Linkedin: Halcyon Agri Twitter: @HalcyonAgri Wechat: HalcyonAgri Visit us: www.halcyonagri.com Email us: investor@halcyonagri.com