Wilmar International Limited · SGX:F34
Wilmar International — H1 2006 Earnings Presentation
16 slides from Wilmar International's earnings presentation, Aug 29, 2006
Slide 1: Wilmar International Limited 1HFY06 Results Briefing
WILMAR INTERNATIONAL LIMITED 1HFY06 RESULTS BRIEFING 29 AUGUST 2006 1 IMPORTANT NOTICE Information contained in this presentation by Wilmar International Limited (the “Company”) is intended solely for your personal reference only and should not be construed other than as an announcement under the pr
Slide 2: Presentation Overview
Presentation Overview • Introduction - Who We Are - Our Competitive Edge • Strategies & Expansion Plans • 1HFY06 Results Highlights • Questions & Answers 3 Introduction Presenter: Mr KUOK Khoon Hong 4 2
Slide 3: Who We Are
Who We Are • Established in 1991 and headquartered in Singapore • One of Asia’s Largest Integrated Agribusiness Groups • Our business activities: – Manufacturing – Merchandising – Shipping – Plantation *Strictly Private & Confidential 5 Our Manufacturing Facilities As at 31 July 2006 Under construct
Slide 4: Capturing the Entire Value Chain of the Palm Oil Business
Capturing the Entire Value Chain of the Palm Oil Business - from Origin to Customer Customer Origin • Origination • Merchandising, - Plantation Shipping & Distribution • Processing • Products - Sourcing of palm - Milling, crushing, - Owns fleet of 7 liquid - Bulk oil fruits & crude bulk vessels refi
Slide 5: Location of Our Operations / Global Marketing Network
Location of Our Operations 9 Global Marketing Network Products are exported to > 30 countries 10 5
Slide 6: Blue Chip Customer Base / Our Competitive Edge
Blue Chip Customer Base • The Procter & Gamble Company • Cargill, Incorporated • Cognis Deutschland GmbH & Co. KG • Unilever N.V. • Alfred C. Toepfer International GmbH • Hindustan Lever Limited • Nirma Limited • VVF Limited • China Grains & Oils Group Corporation • Beijing Heyirong Cereal & Oil Co.
Slide 7: Strategies & Expansion Plans
Strategies & Expansion Plans 13 Strategies & Expansion Plans Biodiesel expansion plans • First biodiesel plant – expand capacity from 250,000MT/pa to 350,000MT/pa • Cost - about US$20m, completion – Jan 2007 • 2 more plants – capacity of 350,000MT/pa each • Cost - about US$35m, completion – 2Q07 & 3
Slide 8: Expansion of Oil Palm Plantation Acreage
Strategies & Expansion Plans Expansion of oil palm plantation acreage • Acquisition of 5 plantation companies – land bank of about 85,000 ha in Kalimantan, total cost US$5.8m • Acquisition of 25,000 ha land bank by 2 existing subsidiaries • Total plantation land bank to increase to 180,000 ha • Plan
Slide 9: Revenue and Net Profit
Revenue US$’million ‘million MT 6,000 14 12.7 5,000 11.1 12 9.7 4,889 4,652 10 4,000 3,752 7.0 8 3,000 6.3 6 2,000 2,375 2,218 4 1,000 2 0 0 FY03 FY04 FY05 1H05 1H06 Revenue Volume 17 Net Profit US$’million 70 60.3 58.0 • FY2004 60 Crossed US$50 million mark 50 • 1H06 40 Sustained growth 31.5 32.0 3
Slide 10: Revenue by Business Activity / Segmental Profit Before Tax
Revenue By Business Activity * FY2005 1H06 US$268.3m US$190.9m US$92.4m US$157.0m 5% 4% 6% 4% 38% 33% US$1,929.8m 57% 53% US$862.8m US$1,466.5m US$2,652.7m Palm & laurics Soya bean & soya bean meal Plantations & palm oil mills Others ** * Before elimination of inter-segment sales ** Comprises fertil
Slide 11: Merchandising & Refinery - Palm & Laurics
Merchandising & Refinery - Palm & Laurics FY05 2Q 2Q 1H 1H FY05 FY06 FY05 FY06 Revenue 2,653 639 756 1,251 1,427 (US$ million) Sales volume 6,043 1,973 2,226 3,319 3,683 (‘000 MT) Production volume 4,280 1,177 1,449 2,365 2,749 (‘000 MT) Profit before tax 45.1 9.9 8.4 19.5 21.0 (US$ million) Profit
Slide 12: Soya Bean & Soya Bean Meal / Plantation Statistics
Merchandising & Refinery - Soya Bean & Soya Bean Meal FY05 2QFY05 2QFY06 1HFY05 1HFY06 Revenue 1,930 475 478 879 863 (US$ million) Sales volume 6,663 1,558 1,881 2,961 3,323 (‘000 MT) Profit before tax 1.7 0.4 1.9 0.7 3.3 (US$ million) Profit before tax 0.25 0.25 1.00 0.25 1.00 per MT (US$/MT) • Pro
Slide 13: Plantation Statistics and Age Profile
Plantation Statistics • Increased FFB production due to : – Improved yield (1H06 : 10.5MT/ha, 1H05 : 8.1Mt/ha) – Full effect from plantations acquired in FY05 • Drought in early 2005 affected FY05 yield • CPO and PK extraction rate – fairly constant • Own plantations supply approx. 25% of mill requi
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights US$ million 31 Dec 05 31 Mar 06 30 June 06 Long Term Assets 589 608 647 Gross Gearing Ratio 2.59x 2.34x 2.40x - Total Borrowings 690 658 710 - Total S/H Funds 266 281 296 Turnover Days - Inventory 26 26 26 - Trade Receivables 28 28 28 - Trade Payables 18 14 16 27 Balance She
Slide 15: Funding Structure / Key Ratios
Funding Structure US$ million 30 June 06 Current Assets 763.4 Past funding structure : Current Liabilities 886.0 managed as part of WHPL Group Net current assets (122.6) Going forward : Borrowings structure : Long term borrowings 86.1 • strengthened by US$174m Short term borrowings 624.0 new equit
Slide 16: Questions & Answers
Questions & Answers 31 16