Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — Q1 2010 Earnings Presentation
20 slides from Golden Agri-resources's earnings presentation, May 12, 2010
Slide 1: Interim Performance Presentation
Interim Performance Presentation 1Q 2010 : three-month period ended 31st March 2010 12 May 2010 0
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: Table of Contents
Table of Contents Section 1 Executive Summary 3 Section 2 1Q 2010 Financial Performance 5 Section 3 1Q 2010 Operational Performance 10 Section 4 Growth Strategy and Outlook 14 2
Slide 4: Executive Summary
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Slide 5: Executive Summary
Executive Summary Sustained growth in quarterly results despite low seasonal production Price (US$/MT) EBITDA (US$ million) Production (‘000 MT) • Delivered strong EBITDA of US$140 million and Net Profit of US$89 million 160 800 • Achieved more than 50% increase in Revenue, more than tripling EBITDA
Slide 6: 1Q 2010 Financial Performance
Section 2 1Q 2010 Financial Performance
Slide 7: Financial Summary – 1Q 2010
Financial Summary – 1Q 2010 US$ million 1Q 2010 1Q 2009 YoY 4Q 2009 QoQ Change Change Revenue 625 412 52% 643 -3% Gross Profit 174 63 174% 159 9% EBITDA 140 45 210% 129 9% Interest on borrowings -10 -11 -9% -9 4% Depreciation and amortisation -18 -16 14% -19 -7% Foreign exchange gain (loss), net 7 -
Slide 8: Segmental Results
Segmental Results Strong contribution from our Indonesia operations supported by China operations (in US$ million) Indonesia Operations China Operations 1Q 2010 1Q 2009 Change 1Q 2010 1Q 2009 Change Revenue 506 288 76% 118 124 -5% Gross Profit 167 56 197% 7 7 -6% Gross Profit Margin 33% 19% 14% 6% 6
Slide 9: Revenue By Product and Geographical Location
Revenue By Product and Geographical Location 1Q 2010 revenue of US$625 million mainly from CPO and refined palm oil based products Revenue - By Product Revenue – By Country Others PK 5% 1% Soybean Oil 4% Indo Local Soybean Meal China Local 19% 8% 19% Branded CPO Products 46% 10% Indo Export Unbrande
Slide 10: Financial Position
Financial Position Strong balance sheet with low gearing, well supported by previous equity capital raising exercise (in US$ million) 31-Mar-10 31-Dec-09 Change Total Assets 7,834 7,900 -1% Cash and Short-Term Investments 238 353 -33% Receivables and Inventories 901 912 -1% Fixed Assets1 6,520 6,460
Slide 11: 1Q 2010 Operational Performance
Section 3 1Q 2010 Operational Performance
Slide 12: Plantation Area
Plantation Area GAR is the largest Indonesian plantation company with integrated operations (in ha) 31 Mar 31 Mar 31 Mar 2009/2010 31 Dec 2010 2009 % increase 2009 Planted Area 430,152 395,774 8.7% 427,253 Nucleus 342,158 311,331 9.9% 339,818 Plasma 87,994 84,443 4.2% 87,435 Mature Area 365,180 334,
Slide 13: Age Profile
Age Profile GAR’s long-term growth is supported by favourable age profile of planted area underpinned by large immature and young plantations Immature Young Prime Old Total (in ha) (0-3 years) (4-6 years) (7-18 years) (>18 Years) 1Q 2010 Nucleus 59,039 69,979 154,138 59,002 342,158 Plasma 5,933 3,60
Slide 14: Production Highlights
Production Highlights Constant fruits production level due to seasonality 1Q 2010 1Q 2009 % increase (decrease) FFB Production (tonnes) 1,465,437 1,476,770 -0.8% Nucleus 1,139,402 1,103,547 3.2% Plasma 326,035 373,222 -12.6% FFB Yield (tonne/ha) 4.01 4.42 -9.3% Palm Product Production (tonnes) 449,7
Slide 15: Growth Strategy and Outlook
Section 4 Growth Strategy and Outlook
Slide 16: Strategic Priorities
Strategic Priorities Build on core competitive strengths to maximise long-term shareholder returns Expand high-margin • Target additional planted area of 50,000 ha per annum upstream business • Split between green field vs acquisition to be assessed based on opportunities • Increase downstream produ
Slide 17: Strong Commitment to Sustainability
Strong Commitment to Sustainability GAR aims to be the leader in sustainable palm oil production Environment Implement best practices holistically in all four dimensions of sustainability: environment, market place, community and workplace Holistic Benchmark against Roundtable on Sustainable Workpla
Slide 18: Strong Commitment to Sustainability
Strong Commitment to Sustainability Strengthened Standard Operating Procedures No conversion of High Carbon stock land (peat land and primary forest) No conversion of High Conservation Value area Independent verification of Greenpeace’s reports Appoint two independent certification bodies to verify
Slide 19: Outlook
Outlook Maintaining optimistic outlook for the rest of 2010 • Resilient growth in edible oil demand, especially for palm oil Growing popularity as edible oil in developed and emerging markets Increasing demand for substitute and alternative uses such as oleochemicals and biodiesel • The Company is b
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 : Rafael B. Concepcion, Jr. (rafaelc@goldenagri.com.sg) Su
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