Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — FY2007 Earnings Presentation
28 slides from Golden Agri-resources's earnings presentation, Feb 25, 2008
Slide 1: Golden Era for Golden Agri
Golden Era for Golden Agri Financial Results Presentation Year ended 31 December 2007 (FY 2007) 25 February 2008 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 Introduction 3 Section 2 Financial Highlights of FY 2007 and Q4 2007 9 Section 3 Operational Highlights of FY 2007 and Q4 2007 18 Section 4 Growth Strategy 22 Section 5 FY 2007 Performance Summary 25 2
Slide 4: Introduction
a) gar ZF gar and food Section 1 Introduction
Slide 5: Overview of GAR
Overview of GAR Indonesia’s largest palm oil plantation company and second largest in the world Well-placed to enjoy uptrend in Crude Palm Oil (“CPO”) prices Operations in Indonesia and China Vertically integrated operation in Indonesia captures returns from all levels of palm oil value chai
Slide 6: Operations in Indonesia
Operations in Indonesia Belawan Sumatra Kalimantan Sulawesi Papua Jakarta Tarjun Surabaya Java Bali Plantations and Mills Refineries Tarjun Refinery (under construction) Jakarta Refinery (plan) 5
Slide 7: Operations in China
Operations in China Shanghai Ningbo ZHEJIANG HUNAN JIANGXI FUJIAN GUANGDONG Refinery Zhuhai Crushing Port & Storage Facility Distribution Centers 6
Slide 8: Competitive Strengths
Competitive Strengths 360,000 hectares of plantation under management Highly efficient operations due to economies of scale 1.3 million hectares land bank1 available for expansion Equivalent to 18.5 times of Singapore2 Vertically-integrated operations (see page 8) Maximize profit margins
Slide 9: Integrated Operations in Indonesia
Integrated Operations in Indonesia Research & Processed Basic product Processing Development product CPO Refining Branded & unbranded cooking oil Plantations & No. of refineries CPO mill Production 2 Harvesting Co-operate with Fatty acid 1,607,877 tons Capacity CIRAD from Planted area (FY 2007) 840,
Slide 10: Financial Highlights of FY 2007 and Q4 2007
Section 2 Financial Highlights of FY 2007 and Q4 2007
Slide 11: Financial Summary – FY2007
Financial Summary – FY2007 US$'million FY 2007 FY 2006 % Change Revenue 1,873 1,130 66% Gross Profit Margin 35% 24% 46% EBITDA 535 215 149% EBITDA Margin 29% 19% 53% Net Profit attributable to equity holders 1,165 471 148% Comprising: Net gain from changes in fair value of biological assets (Net o
Slide 12: FY 2007 Financial Highlights
FY 2007 Financial Highlights Record revenue of USD 1.9 billion, 66% increase from FY 2006 Record net profit attributable to equity holders of USD 1.2 billion, 148% increase from FY 2006 Strong growth in gross profit margin from 24% in FY 2006 to 35% in FY 2007 Strong growth in EBITDA margin
Slide 13: Financial Summary – Q4 2007
Financial Summary – Q4 2007 US$'million Q4 2007 Q4 2006 % Change Revenue 658 303 117% Gross Profit Margin 36% 20% 80% EBITDA 171 44 290% EBITDA Margin 26% 14% 86% Net Profit attributable to equity holders 574 37 1,432% Comprising: Net gain from changes in fair value of biological assets (Net of ta
Slide 14: Q4 2007 Financial Highlights
Q4 2007 Financial Highlights Record quarterly revenue of USD 658 million Record quarterly net profit attributable to equity holders of USD 574 million Outstanding Q4 2007 results driven by Higher production of CPO led by − Improved weather conditions after 1H 2007 CPO production affected by
Slide 15: Segmental Results – FY 2007
Segmental Results – FY 2007 Results of operations in Indonesia and China (in US$ million) Indonesia Operations China Operations FY 2007 FY 2006 % Change FY 2007 FY 2006 % Change Revenue 1,395 797 75% 478 333 44% Gross Profit Margin 44% 30% 47% 10% 9% 11% EBITDA 494 191 159% 41 24 71% EBITDA Margin 3
Slide 16: Revenue By Product and Geographical Location
Revenue By Product and Geographical Location Record revenues of USD 1.9 billion mainly from CPO and refined palm oil based products Revenue - By Product Revenue – By Country PK Others 2% 1% Soybean Oil 8% China Local Indo Local Soybean 26% 33% Meals 10% Branded Palm CPO Products 10% 43% Indo Export
Slide 17: Financial Position
Financial Position Strong balance sheet Low debt to equity ratio with capacity to gear up for expansion (in US$ million) 31-Dec-07 31-Dec-06 % Change Total Assets 5,020 2,985 68% Cash and Short-Term Investments 147 134 9% Total Liabilities 1,639 1,064 54% Interest Bearing Debts 492 477 3% Total
Slide 18: Dividend Policy and Payment
Dividend Policy and Payment Description 2005 2006 2007 Interim Proposed Total Dividend per share (in S$ cents) 0.251 0.541,2 0.501 0.501 1.001 Total Dividend (in S$ million) 21.69 53.42 49.88 49.88 99.76 Dividend Policy The Company’s dividend policy is to distribute up to 30% of underlying profit as
Slide 19: Operational Highlights of FY 2007 and Q4 2007
Section 3 Operational Highlights of FY 2007 and Q4 2007
Slide 20: Plantation Area
Plantation Area Age profile of trees favorably positions GAR to capture the surge in CPO prices More than 247,000 hectares of planted area are in their prime1 producing years Expanded planted area by about 53,000 hectares in FY 2007 25,000 hectares relates to new planting; and 28,000 hecta
Slide 21: Production Highlights
Production Highlights Record Palm Product Production of 2 million tons Consistent FFB yield across all estates FY 2007 FY 2006 Q4 2007 Q4 2006 FFB Production (tons) 6,764,804 6,001,008 2,141,361 1,348,126 Nucleus 5,077,782 4,376,687 1,593,866 971,083 Plasma 1,687,022 1,624,321 547,495 377,043 FF
Slide 22: Production Performance
Production Performance • Record Palm Product Production of 2 million tons in FY 2007 • Continued growth in FFB yield FFB Production Palm Product Production (‘000 Tons) (‘000 Tons) (Ton/ha) 7,000 6,765 2,100 23.75 24 5,870 6,001 6,000 5,654 1,687 1,800 337 359 315 23 1,595 1,624 5,000 1,463 1,500 299
Slide 23: Growth Strategy
a) gar ZF gar and food Section 4 Growth Strategy
Slide 24: Growth Strategy
Growth Strategy Commitment to sound business strategies and continuous operational excellence will enable GAR to sustain growth and profitability Continued Growth and Profitability Food Industrial Bio-Fuel Strong Plantation Foundation Second largest in the world with 360,000 ha planted Future expans
Slide 25: FY 2008 Growth Strategy
FY 2008 Growth Strategy Expanding Oil Palm Plantations (via planting & acquisition) • Target additional planted area of 60,000 ha • Two new mills in Kalimantan with total capacity of 125 ton per hour targeted for completion in 2H 2008 Adding Downstream Processing/Refining Capacity • New refinery in
Slide 26: FY 2007 Performance Summary
Section 5 FY 2007 Performance Summary
Slide 27: FY 2007 Performance Summary
FY 2007 Performance Summary Golden Era for Golden Agri • Record Net Profit1 of close to USD 1.2 billion, increase by about 150% from last year • Revenue increased by 66% to USD 1.9 billion • EBITDA increased by 150% to USD 535 million • Record Palm Product Production at close to 2.0 million tons • R
Slide 28: Contact Us
Contact Us If you need further information, please contact: Golden Agri-Resources Ltd c/o 3 Shenton Way #17-03 Shenton House Singapore 068805 Website : www.goldenagri.com.sg Telephone : +65 62207720 Facsimile : +65 62207020 Contact Person : Rafael B. Concepcion, Jr. (rafaelc@goldenagri.com.sg) Suwan