Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — Q1 2013 Earnings Presentation
27 slides from Golden Agri-resources's earnings presentation, May 13, 2013
Slide 1: Interim Performance Presentation
Interim Performance Presentation three month period ended 31st March 2013 YTD Mar 2013 : three-month 13 May 2013 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 Financial Highlights 5 Section 3 Pl t ti Plantation Hi Highlights hli ht 9 Section 4 Downstream Highlights 15 Section 5 Strategy and Outlook 18 Section 6 Appendix 23 2
Slide 4: Executive Summary
Agar ZF agribusiness and food Section 1 Executive Summary
Slide 5: Executive Summary
Executive Summary Strong quarter-on-quarter EBITDA (US$ million) Price (US$/MT) Output O t t (‘000 MT) performance despite seasonally 320 1,300 lower production 280 1,200 240 1,100 Revenue $1,430 mn 6% 1,000 200 900 EBITDA $211 mn 48% 160 800 120 Net Profit1 $113 mn 176% 700 80 600 Palm products out
Slide 6: Financial Highlights
Section 2 Financial Highlights
Slide 7: Financial Performance
Financial Performance US$ million 1Q 2013 4Q 2012 QoQ 1Q 2012 YoY Change Change Revenue 1,430 1,519 -6% 1,519 -6% Gross Profit 357 361 -1% 454 -21% EBITDA 211 142 48% 252 -17% 17% Interest on borrowings -23 -21 9% -15 51% Depreciation and amortisation -31 -32 -3% -27 15% Foreign g exchange g ggain,,
Slide 8: Segmental Results
Segmental Seg e ta Results esu ts US$ million Indonesia Operations China Operations 1Q 2013 4Q 2012 Change 1Q 2013 4Q 2012 Change Revenue 1,118 1,179 -5% 312 340 -8% Gross Profit 338 373 -9% 19 -12 n.m. Gross Profit Margin 30% 32% -2% 6% -4% 10% EBITDA 202 163 24% 9 -21 n.m. EBITDA Margin M i 18% 14
Slide 9: Financial Position
Financial Position Strong balance sheet position with low gearing (in US$ million) 31-Mar-13 31-Dec-12 Change Total Assets 13,332 13,286 0% Cash and Short-Term Short Term Investments 650 685 -5% 5% Trade Receivables and Inventories 1,099 1,240 -11% Fixed Assets1 9,978 9,907 1% Total Liabilities 4,60
Slide 10: Plantation Highlights
Section 3 Plantation Highlights
Slide 11: Plantation Area
Plantation Area GAR is the largest Indonesian plantation company with integrated operations (in ha) 31 Mar 31 Mar 31 Mar 2012/2013 31 Dec 2013 2012 % increase 2012 Planted Area 464,251 455,848 1.8% 463,426 Nucleus 367 317 367,317 360 703 360,703 1 8% 1.8% 366 914 366,914 Plasma 96,934 95,145 1.9% 96
Slide 12: Total Planted Area by Age Profile
Total Planted Area by Age Profile GAR’s long-term growth is supported by favourable age profile of planted area underpinned by large immature and young plantations 1Q 2013 1Q 2012 5% 6% 4% 8% 22,184 21% 21,186 23% 17% 29,015 35,371 95,224 108 278 108,278 80,095 91,891 20% 224,679 212,176 47% 49% Not
Slide 13: Production Performance
Production Performance 1Q 2013 FFB and palm product production improved year-on-year 1Q 2013 1Q 2012 % increase (decrease) FFB Production (tonnes) 2,149,290 1,994,471 8% Nucleus 1,685,889 1,524,215 11% Plasma 463,401 470,256 -1% FFB Yield (tonne/ha) 4.94 4.74 4% Palm Product Production (tonnes) 664,
Slide 14: Production Trend
Production Trend For the past 10 years, GAR’s palm product output has been consistently increasing supported by organic growth as well as acquisitions (‘000 MT) 3000 2,911 2 640 2,640 2500 2,347 2,273 2,073 2000 1,967 1,794 1,890 1,666 1500 00 1 433 1,433 1000 618 664 500 0 2003 2004 2005 2006 2007
Slide 15: Holistic Approach to Sustainability
Holistic Approach pp to Sustainability y Certification Updates • In addition to Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability and Carbon C tifi ti (ISCC) Certification (ISCC), GAR hhas also l received i d itits fi firstt IIndonesian d i S Sustainable t i bl P Palm l Oil
Slide 16: Downstream Highlights
Section 4 Downstream Highlights
Slide 17: Expanding Downstream Capacity in Indonesia
Expanding Downstream Capacity in Indonesia Expanding Indonesia downstream production base for global exports • 1Q 2013 total branded sales (domestic and export) volume increased by 19% year-on-year • Refining capacity expansion supported by: • Growing palm products output from our plantations • Expo
Slide 18: Strengthening Downstream Business in China
Strengthening Downstream Business in China Strengthening of the management team showing positive impact in China as one of the largest and fastest growing edible oils consumers GAR strategically strengthen its presence in China by: • Developing distribution channels to enter new areas in China • Ach
Slide 19: Strategy and Outlook
Section 5 Strategy and Outlook 18
Slide 20: Strategic Priorities
Strategic g Priorities Build on core competitive strengths and leverage scale to maximize long-term shareholder returns Objective: Sustained Growth and Profitability Upstream Downstream • Optimise p value throughout g the chain supported pp • To become the world largest oil palm by prudent risk mana
Slide 21: Downstream Value Chain Optimisation
Downstream Value Chain Optimisation Capitalise on our unique advantage of having own large CPO production and close access to third party plantations … CANADA UK US EU NETHERLAND East GERMANY Asia TURKEY South MiddlePAKISTAN Asia EGYPTEast Africa 5 6 4 1 0 9 1 CPO input 1 Trade flows 1 8 2 … to grow
Slide 22: Downstream Value Chain Optimisation
Downstream Value Chain Optimisation Commercially manage our plantation output and downstream assets to capitalise on value chain optimisation opportunities Sourcing of Product Sales and raw materials Processing customisation distribution • Strategic locations Efficient logistics Margin optimisation
Slide 23: Growth Strategy and Outlook
Growth Strategy and Outlook Growth Strategy • Expanding palm oil plantations by 35,000-45,000 hectares in 2013 through organic growth and acquisition • Building milling capacity in line with the growth in fruits production • Constructing additional downstream processing capacity in strategic locatio
Slide 24: Appendix
Aext agribusiness and food Section 6 Appendix
Slide 25: Revenue Details
Revenue Details 1Q 2013 revenue of US$1.4 billion mainly from CPO and refined palm oil based products By Product By Country PK Soybean Oil Others 8% 0% 4% Indonesia Soybean Local Meal China Local 10% 8% CPO 43% 22% Branded Products 8% Unbranded Indonesia Refined Palm Export Products 68% 29% 24
Slide 26: 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 1 Old 2 Total (in ha) (0-3 years) (4-6 years) (7-18 years) (19-25 years) (>25 years) 31 Mar 2013 Nucleus 23,419 70,572 173,884 77,258
Slide 27: 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 : Richard Fung (richard@goldenagri.com.sg) 26
Golden Agri-Resources — Q1 2013 Earnings Presentation on 6ix