Wilmar International Limited · SGX:F34
Wilmar International — Q4 2011 Earnings Presentation
26 slides from Wilmar International's earnings presentation, Feb 22, 2012
Slide 1: Wilmar International Limited 4Q2011 Results Briefing
WILMAR INTERNATIONAL LIMITED 4Q2011 RESULTS BRIEFING 22 FEBRUARY 2012 1
Slide 2: Important Notice
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 current assumptions which are subject to various risks and which may cha
Slide 3: Presentation Overview
PRESENTATION OVERVIEW • 4Q11 & FY11 Financial Performance • Risk Management • Business Update • Questions & Answers 3
Slide 4: Results Overview
Results Overview 4Q11 vs 4Q10 US$m Revenue 11,519 27% EBITDA 919 65% Net profit 500 57% Earnings per share in US cents 7.7 57% (fully diluted) Net profit – excl non-operating items & 265 217% biological assets gains FY11 vs FY10 US$m Revenue 44,710 47% EBITDA 2,860 41% Net profit 1,601 21% Earnings
Slide 5: Revenue
Revenue Revenue Volume 4Q11 vs 4Q10 US$ million million MT - revenue up 27% on higher volume, 50,000 particularly from 40.2 39.1 Oilseeds & Grains, 40 Consumer Products 44,710 40,000 and Sugar contribution 30 FY11 vs FY10 30,000 30,378 − revenue up 47% on higher volume, 20 particularly from 20,000 O
Slide 6: Net Profit
Net Profit 4Q11 vs 4Q10 US$ million - Net profit up 57%. 1,600 Ex non-op items/bio assets 1,600.8 gains up 217% 1,517.0 - Recovery in Oilseeds & Grains, profit in Sugar, 1,324.0 stronger contributions from 1,200 Associates - Lower profit in Plantations 1,052.0 & Palm Oil Mills, Palm & Laurics and Co
Slide 7: Profit Before Tax by Business Segment
Profit Before Tax by Business Segment US$' million 4Q11 4Q10 ∆ FY11 FY10 ∆ Merchandising & Processing 110.3 (14.1) n.m. 1,008.8 704.6 43% Palm & laurics 108.6 159.1 -32% 585.9 587.1 0% Oilseeds & grains 1.7 (173.2) n.m. 422.9 117.5 260% Consumer Products 33.2 37.5 -11% 85.3 149.8 -43% Plantations &
Slide 8: Pretax Profit Breakdown by Business Segment
Pretax Profit Breakdown by Business Segment 4Q11 4Q10 FY11 FY10 Merchandising & Processing 16.1% -3.2% 46.0% 41.1% Palm & laurics 15.9% 35.9% 26.7% 34.2% Oilseeds & grains 0.2% -39.1% 19.3% 6.9% Consumer Products 4.9% 8.4% 3.9% 8.7% Plantations & Palm Oil Mills 54.9% 85.9% 33.4% 37.0% Sugar 14.4% -
Slide 9: Merchandising & Processing – Palm & Laurics
Merchandising & Processing – Palm & Laurics 4Q11 4Q10 ∆ FY11 FY10 ∆ Revenue (US$ million) 5,475 5,156 6% 22,917 16,821 36% Sales volume (‘000 MT) 5,344 5,783 -8% 20,306 20,820 -2% Profit before tax 108.6 159.1 -32% 585.9 587.1 <-1% (US$ million) Profit before tax per MT 20.3 27.5 -26% 28.9 28.2 2% (
Slide 10: Merchandising & Processing – Oilseeds & Grains
Merchandising & Processing – Oilseeds & Grains 4Q11 4Q10 ∆ FY11 FY10 ∆ Revenue (US$ million) 3,827 2,975 29% 12,670 10,172 25% Sales volume (‘000 MT) 6,150 4,740 30% 19,939 18,281 9% Profit before tax 1.7 (173.2) n.m. 422.9 117.5 260% (US$ million) Profit before tax per MT 0.3 (36.5) n.m. 21.2 6.4 2
Slide 11: Consumer Products
Consumer Products 4Q11 4Q10 ∆ FY11 FY10 ∆ Revenue (US$ million) 1,791 1,413 27% 6,769 4,697 44% Sales volume (‘000 MT) 1,178 1,035 14% 4,397 3,679 20% Profit before tax 33.2 37.5 -11% 85.3 149.8 -43% (US$ million) Profit before tax per MT 28.1 36.2 -22% 19.4 40.7 -52% (US$/MT) • Sales volume was up
Slide 12: Plantations & Palm Oil Mills
Plantations & Palm Oil Mills US$ million 4Q11 4Q10 ∆ FY11 FY10 ∆ Revenue 462.2 497.4 -7% 1,842.5 1,485.2 24% Profit before tax 376.1 380.6 -1% 733.8 635.8 15% Planted area (ha) 247,081 244,965 1% 247,081 244,965 1% Mature area harvested (ha) 205,485 186,688 10% 205,485 186,688 10% FFB production (MT
Slide 13: Plantation Age Profile
Plantation Age Profile in hectares Average Age of Palm 31 December 2011 0 to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Indonesia 26,886 74,627 42,293 16,402 23,261 183,469 Malaysia 2,679 5,608 18,167 17,304 15,176 58,934 Africa 893 579 1,749 3 1,454 4,678 Total planted area 30,458 80,814 62
Slide 14: Sugar - Milling
Sugar - Milling 4Q11 4Q10 ∆ FY11 FY10 ∆ Revenue (US$ million) 405 - n.m. 1,164 - n.m. Sales volume (‘000 MT) 1,070 - n.m. 2,669 - n.m. Profit before tax 101.9 - n.m. 85.7 - n.m. (US$ million) Excluding non-operating items : Profit before tax from 42.3 - n.m. 48.5 - n.m. operations (US$ million) Prof
Slide 15: Sugar – Merchandising & Processing
Sugar – Merchandising & Processing 4Q11 4Q10 ∆ FY11 FY10 ∆ Revenue (US$ million) 476 - n.m. 2,045 - n.m. Sales volume (‘000 MT) 567 - n.m. 2,458 - n.m. Profit before tax -3.5 - n.m. 55.5 - n.m. (US$ million) Excluding non-operating items : Profit before tax from -12.7 - n.m. 45.7 - n.m. operations (
Slide 16: Non-operating Items
Non-operating Items In US$ million 4Q11 4Q10 ∆ FY11 FY10 ∆ Foreign exchange gain arising from 62.1 48.5 26.5 48.7 intercompany loans to subsidiaries Net gain/(loss) from investment securities 6.3 27.8 (68.7) 94.3 Changes in the fair value of derivatives (1.3) (0.7) (84.7) (27.2) embedded in converti
Slide 17: Cashflow
Cashflow US$ million FY11 FY10 Operating cashflow 1,948 (2,319) Less : Investment in subsidiaries and associates (356) (1,679) Capital expenditure (1,554) (1,064) Net proceeds from bank borrowings 3,029 5,835 Other deposits and financial products with (1,732) (729) financial institutions Dividends (
Slide 18: Gearing
Gearing As at As at US$ million 31 Dec 11 31 Dec 10 Debt/Equity (x) 0.97 0.90 - Net Debt 12,991 10,637 - Shareholders' funds 13,370 11,856 Adjusted Debt/Equity (x) 0.47 0.38 - Liquid working capital * 6,687 6,095 - Adjusted Net Debt 6,303 4,543 Interest coverage (x) # 7.3 23.0 * Liquid working capit
Slide 19: Funding & Liquidity
Funding & Liquidity As at 31 Dec 11 US$ million Available Utilised Balance Credit facilities : Committed 5,418 5,042 376 Trade finance 24,986 15,322 9,664 Short term 640 524 116 Total credit facilities 31,044 20,888 10,156 Cash & cash equivalents 1,280 Total liquidity 11,436 • 73% of utilised facili
Slide 20: Key Indicators
Key Indicators Year ended Year ended 31 Dec 11 31 Dec 10 Return on Average Equity 12.7% 11.6% Return on Average Capital Employed 7.7% 7.8% Return on Average Assets 4.6% 5.1% in US cents EPS (fully diluted) 25.0 20.7 NTA per share 140.0 116.5 NAV per share 208.9 185.3 in Singapore cents Dividends (in
Slide 21: Risk Management
Risk Management 21
Slide 22: Risk Management
Risk Management Commodities Credit Risk Price Risk Risk Governance Structure Foreign Exchange Interest Rate Risk Risk 22
Slide 23: Risk Governance Structure
Risk Governance Structure Board-level Risk Management Committee (RMC) - Chaired by Lead Independent Director Independent - Oversees ERC Middle Office - Reviews overall risk management guidelines/ - Captures and framework, policies & systems measures Group- - Reviews & approves enterprise risk limits
Slide 24: Business Update
Business Update 24
Slide 25: Prospects
Prospects • Amidst a challenging FY2011 due to the weak global economic conditions, the Group strengthened its businesses through continued investments in sugar, flour and rice milling, oleochemicals, biodiesel, edible oils refining and consumer products. • It is also exploring closer collaborations
Slide 26: Questions & Answers
Questions & Answers 26