Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — FY2011 Earnings Presentation
28 slides from Golden Agri-resources's earnings presentation, Feb 27, 2012
Slide 1: Full Year Performance Presentation
Full Year Performance Presentation FY 2011 : year ended 31st December 2011 27 February 2012 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 Plantation Highlights 12 Section 4 Downstream Highlights 18 Section 5 Strategy and Outlook 21 Section 6 Appendix 24 2
Slide 4: Executive Summary
Agar F agribusiness and food Section 1 Executive Summary
Slide 5: Executive Summary
Executive Summary EBITDA and Core Another record performance in 2011 Net Profit (US$ million) Price (US$/MT) Output (‘000 MT) driven by outstanding palm products 1200 2700 output recovery and robust CPO prices 1000 2400 Revenue $5,953 mn 70% 800 EBITDA $942 mn 43% 2100 Core Net Profit1 $571 mn 48% 6
Slide 6: Financial Highlights
Section 2 Financial Highlights
Slide 7: Financial Performance – FY 2011
Financial Performance – FY 2011 US$ million FY 2011 FY 2010 Change Revenue 5,953 3,505 70% Gross Profit 1,837 955 92% EBITDA 942 661 43% Core Net Profit1 571 387 47% Addition: Net gain from changes in fair value of biological assets (net of tax and non-controlling interests)2 672 1,012 -34% Foreign
Slide 8: Financial Summary – 4Q 2011
Financial Summary – 4Q 2011 US$ million 4Q 2011 4Q 2010 YoY 3Q 2011 QoQ Change Change Revenue 1,328 1,189 12% 1,562 -15% Gross Profit 386 387 0% 422 -8% EBITDA 181 237 -24% 200 -10% Core Net Profit1 91 146 -38% 118 -23% Addition: • Net gain from changes in fair value of biological assets (net of tax
Slide 9: Segmental Results
Segmental Results Strong contribution from our Indonesia operations supported by China operations US$ million Indonesia Operations China Operations FY 2011 FY 2010 Change FY 2011 FY 2010 Change Revenue 4,813 2,800 72% 1,140 705 62% Gross Profit 1,771 916 93% 66 39 70% Gross Profit Margin 37% 33% 4%
Slide 10: Revenue Growth
Revenue Growth Revenue more than tripled over five years, supported by strong CPO prices and growing production volumes US$ million 7,000 CAGR of 34% 5,953 Others 6,000 Soybean oil 5,000 Soybean meal 4,000 3,505 2,986 Branded products 3,000 2,294 1,873 Unbranded CPO-based products 2,000 PK and PK-ba
Slide 11: Financial Position
Financial Position Strong financial position with low gearing US$ million 31-Dec-11 31-Dec-10 Change Total Assets 11,837 10,114 17% Cash and Short-Term Investments 370 276 34% Trade Receivables and Inventories 985 825 19% Fixed Assets1 9,565 8,270 16% Total Liabilities 3,725 3,169 18% Interest Beari
Slide 12: Dividend
Dividend The Board proposes a final dividend for 2011 of 1.84 Singapore cents, 139% higher than 2010 dividend 2007 2008 2009 2010 2011 Cash Dividend Dividend per share (in S$ cents) 0.9621 0.7691 0.495 0.77 1.84 Total Dividend (in S$ million) 99.76 79.81 60.09 93.47 223.35 % to underlying profit 21%
Slide 13: Plantation Highlights
Section 3 Plantation Highlights
Slide 14: Plantation Area
Plantation Area GAR is the largest Indonesian plantation company with integrated operations hectares 31 Dec 2011 31 Dec 2010 Change Planted Area 455,660 442,470 13,190 Nucleus 361,060 352,124 8,936 Plasma 94,600 90,346 4,254 Mature Area 390,759 363,477 27,282 Nucleus 306,827 281,431 25,396 Plasma 83
Slide 15: 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 Total Planted Area Nucleus Planted Area Plasma Planted Area 2% 3% 11% 14% 15% 19% 20% 20% 5% 20% 24% 44% 38% 65% Note: Data as of 31 December 2011 Average age
Slide 16: Production Performance
Production Performance FY 2011 production volume recovered strongly and achieved record level FY 2011 FY 2010 change 4Q 2011 3Q 2011 change FFB Production (‘000 tonnes) 8,509 7,560 13% 2,297 2,190 5% Nucleus 6,398 5,705 12% 1,736 1,629 7% Plasma 2,111 1,855 14% 561 561 - FFB Yield (tonnes/ha) 21.8 2
Slide 17: Sustained Production Growth
Sustained Production Growth Sustained production growth through consistent expansion and best plantation management practices, supported by unrivalled technology platform ‘000 MT 9,000 8,509 8,000 7,707 7,560 6,765 6,924 7,000 5,870 6,001 6,000 5,654 4,612 4,972 5,000 FFB (nucleus and plasma) 4,000
Slide 18: Holistic Approach to Sustainability
Holistic Approach to Sustainability Implemented the Social and Community Engagement Policy (SCEP) and the Yield Improvement Policy (YIP) jointly with The Forest Trust (TFT) on 10 Nov 2011 and 15 Feb 2012, respectively SCEP and YIP build on GAR's Forest Conservation Policy (FCP) to ensure a holistic
Slide 19: Downstream Highlights
Section 4 Downstream Highlights
Slide 20: Downstream – Indonesia Operations
Downstream – Indonesia Operations Consistent expansion of downstream capacity to capture growing production of our plantations and to focus our sales efforts toward higher value-added products Sales volume Our Brands Capacity (‘000 tpa) (‘000 MT) 1600 240 1400 220 1200 200 1000 Kernel crushing capac
Slide 21: Downstream – China Operations
Downstream – China Operations China is one of the largest and fastest growing edible oils consumers GAR will strategically expand its presence in China through organic growth and acquisition: Construction of new vegetable oil refinery and soybean crushing facilities Developing distribution channels
Slide 22: Strategy and Outlook
Section 5 Strategy and Outlook 21
Slide 23: Strategic Priorities
Strategic Priorities Build on core competitive strengths to maximize long-term shareholder returns Leverage operating scale and relentless focus on operational excellence Upstream Downstream Sustained Growth and Profitability • Sustain growth through expansion of planted • Increase downstream capabi
Slide 24: Growth Strategy and Outlook
Growth Strategy and Outlook Growth Strategy in 2012 • Expanding palm oil plantations by 30,000 hectares • Building milling capacity in line with the growth in fruits production • Constructing additional downstream processing capacity in strategic locations • Extending distribution coverage and globa
Slide 25: Appendix
Agar agribusiness and food Section 6 Appendix
Slide 26: Plantations by Age Profile
Plantations by Age Profile Immature Young Prime Old 1 Old 2 Total hectares (0-3 years) (4-6 years) (7-18 years) (19-25 years) (>25 years) 31 Dec 2011 Nucleus 54,233 85,521 138,980 72,011 10,315 361,060 Plasma 10,668 4,992 60,561 18,379 - 94,600 Total Area 64,901 90,513 199,541 90,390 10,315 455,660
Slide 27: Revenue By Product and Geographical Location
Revenue By Product and Geographical Location FY 2011 revenue of US$5.95 billion mainly from CPO and refined palm oil based products Revenue - By Product Revenue - By Country Others PK Soybean Oil 6% 1% 4% Sales in Soybean Meal Indonesia 5% China Local 11% 19% Branded CPO Products 46% 8% Sales outsid
Slide 28: 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) 27