Wilmar International Limited · SGX:F34
Wilmar International — Q2 2007 Earnings Presentation
25 slides from Wilmar International's earnings presentation, Aug 14, 2007
Slide 1: Wilmar International Limited 2Q07 Results Briefing
WILMAR INTERNATIONAL LIMITED 2Q07 RESULTS BRIEFING 14 AUGUST 2007 1 IMPORTANT NOTICE Information in this presentation 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 based on curr
Slide 2: Presentation Overview
PRESENTATION OVERVIEW • Background information • Prospects & Future Plans • 2Q07 Financial Highlights • Questions & Answers 3 BACKGROUND INFORMATION Presenter: Mr KUOK Khoon Hong 4 2
Slide 3: Wilmar International
Wilmar International • Headquartered in Singapore and listed on SGX • Asia’s Leading Agribusiness Group after June 07 merger with Kuok Group’s plantation, edible oils, grains & related businesses and restructuring exercise to acquire parent company’s edible oils, oilseeds, grains & related businesse
Slide 4: Leadership Position Post Merger
Leadership Position Post Merger • Largest global processor and merchandiser of palm & lauric oils • One of the largest plantation companies in Indonesia / Malaysia • Largest palm biodiesel manufacturer in the world • China – largest producer of consumer pack edible oils & largest oilseeds crusher, e
Slide 5: Manufacturing Facilities Under Construction – Malaysia & Indonesia
Manufacturing Facilities Under Construction – Malaysia & Indonesia Plants Planned/Under Construction As at 30 June 2007 No. of Plants Capacity (MT p.a.) Refining 1 200,000 Fractionation 2 260,000 Palm Kernel & Copra Crushing 1 20,000 Palm Oil Milling 1 180,000 Biodiesel * 2 700,000 * One of the biod
Slide 6: Global Operations
Global Operations 11 Indonesia & Malaysia - Plantations and Palm Oil Mills 12 6
Slide 7: Indonesia & Malaysia and China Manufacturing Plants
Indonesia & Malaysia - Manufacturing Plants 13 China – Manufacturing Plants 14 7
Slide 8: China Sales Office and India Manufacturing Plants
China – Sales Office 15 India – Manufacturing Plants 16 8
Slide 9: India Sales Office and Global Markets
India – Sales Office 17 Global Markets Products are sold to > 50 countries 18 9
Slide 10: Our Competitive Edge
Our Competitive Edge • Capturing Margin across Value Chain • Major presence in Key Producing & Consuming Countries • Strong Shareholder Base • Global Market Intelligence • Stronger Management Team Post Merger 19 Capturing Margin across Value Chain Cost efficiencies: • Manufacturing cost efficiency d
Slide 11: Major Presence in Key Producing & Consuming Countries
Major Presence in Key Producing &Consuming Countries • Strong merchandising & manufacturing presence in key consuming countries like China, India & Europe • Strong presence in two key tropical oil producing countries – Malaysia & Indonesia • Enhances market intelligence • Provides flexibility in exp
Slide 12: Global Market Intelligence
Global Market Intelligence • Maximising processing margins through timely purchases & sales of raw materials & finished goods • Excellent global market information on demand & supply of oilseeds & edible oils due to: – Large scale origination of crude palm oil, palm kernel and soya beans – Worldwide
Slide 13: Our New Management Team
Our New Management Team Kuok Khoon Hong Chairman and Chief Executive Officer Martua Sitorus Kwok Kian Hai China Finance & Corporate Joint Chief Operating Joint Chief Operating Divison Services Division Officer Officer Khoo Eng Hendri Teo Kim Rahul Matthew Yee Lee Hock Chua Min Saksti Yong Kale John
Slide 14: Our New Management Team
Our New Management Team • Mr KHOO Eng Min : Head Of Plantations Division – Skilled plantations developer with more than 40 years’ experience • Mr GOH Ing Sing : Deputy Head of Plantations Division – Successfully developed and managed Group’s plantations in Indonesia • Mr Matthew MORGENROTH : Group T
Slide 15: Prospects & Future Plans: Industry Prospects
PROSPECTS & FUTURE PLANS 29 Industry Prospects • Tremendous opportunities in the processing and merchandising of palm oil - Rapid expansion of palm oil production esp in Indonesia; 32m MT palm oil production by Malaysia and Indonesia in 2006, potential to grow to > 60m MT in 10 years. • Palm oil pri
Slide 16: Growth Strategy
Growth Strategy • Palm oil merchandising & processing activities - expand refining, crushing and milling operations in line with growth in palm oil production - able to expand capacity either at origin or destination due to strong presence in key producing & consuming countries - cost savings/synerg
Slide 17: 2Q07 Financial Highlights: Merger & Restructuring
2Q07 FINANCIAL HIGHLIGHTS Presenter: Mr CHUA Phuay Hee 33 Merger & Restructuring – Shareholding & Legal Completion 19.6% Kuok Group WHPL ADM Public 31.0% 48.5% 6.7% 13.8% 65.8% 100.0% 100% 100% 34.2% PGEO PPBOP KOG IPT Assets Pre-merger Business 24 May 07, Legal 5 June 07 & completion 8 May 07 13 Au
Slide 18: Merger Accounting Treatment and Revenue
Merger & Restructuring – Accounting Treatment PGEO PPBOP KOG IPT 24 May 07, Legal Completion 8 May 07 5 June 07 & 28 June 07 28 June 07 13 Aug 07* 2Q07 P&L 1 month (June 07) Nil Only share issuance recorded (at 2Q07 Balance Consolidated S$1.71) and corresponding entry in Sheet Other Assets (non-curr
Slide 19: Net Profit and Revenue by Business Segment
Net Profit US$’million • 2Q07 - up 142% 80 • 1H07 - up 105% • Growth drivers 65.6 palm and laurics volume and margin 60 expansion; higher CPO prices; one month’s contribution from 39.6 PPBOP & PGEO 40 32.0 • Excluding PPBOP & PGEO : 2Q07 – US$31.2m, up 20 16.3 91% 1HFY07 – US$57.2m, up 79% 0 2Q06 2Q
Slide 20: Profit Before Tax by Business Segment
Profit Before Tax by Business Segment US$ million 2Q06 2Q07 1H06 1H07 Merchandising & Refinery 10.3 26.0 24.3 45.3 Palm & laurics 8.4 24.2 21.0 42.3 Soya bean & meal 1.9 1.8 3.3 3.0 Plantations & Palm Oil Mills 9.4 24.1 15.8 37.1 Others (0.1) 2.0 2.0 4.8 Total profit before tax 19.6 52.1 42.1 87.2 •
Slide 21: Merchandising & Refinery – Palm & Laurics and Soya Bean
Merchandising & Refinery - Palm & Laurics 2Q06 2Q07 1H06 1H07 Revenue (US$ million) 756 1,802 1,427 2,902 Sales volume (‘000 MT) 2,226 3,289 3,683 5,455 Production volume (‘000 MT) 1,449 1,607 2,749 3,094 Profit before tax (US$ million) 8.4 24.2 21.0 42.3 Profit before tax per MT (US$/MT)* 5.80 15.0
Slide 22: Plantation Statistics
Plantation Statistics 2Q06 2Q07 1H06 1H07 Total planted area 50,828 191,495 50,828 191,495 (hectare) Total mature area 44,594 127,942 44,594 127,942 harvested (hectare) FFB production (MT) 257,031 395,399 469,780 635,382 Yield per mature hectare 5.8 4.9 10.5 9.3 (MT/ha) Mill production Crude Palm Oi
Slide 23: Plantation Age Profile
Plantation Age Profile 31 Dec 2006 Average Age of Palm (hectares) Up to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Land rights 9,574 6,388 34,081 14,556 1,768 66,367 Plasma 549 528 23,314 7,741 - 32,132 Programme Total 10,123 6,916 57,395 22,297 1,768 98,499 % of planted area 10.3% 7.0% 58.3
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights US$ million 31 Dec 06 30 June 07 Equity 606.7 6,356.9 • Substantial increase 172.9 - in equity due to - Net placement proceeds 3.8bn shares issued for merger & Long Term Assets 779.7 6,640.2 restructuring exercise Net Gearing Ratio 1.2x 0.2x • Gearing ratio - Total Borrowing
Slide 25: Key Ratios; Questions & Answers
Key Ratios Year ended 6 mths ended 31 Dec 06 30 June 07 Shareholders’ Funds (US$ million) 584.8 6,309.6 EPS (US cents) 4.51 2.47 Adjusted shareholders’ funds * n.a. 622.0 Adjusted ratios & NTA * : Return on Average Equity 24.6% *19.3% Return on Average Capital Employed # 24.1% *17.1% Return on Avera