Wilmar International Limited · SGX:F34
Wilmar International — Q2 2012 Earnings Presentation
23 slides from Wilmar International's earnings presentation, Aug 15, 2012
Slide 1: Wilmar International Limited 2Q2012 Results Briefing
WILMAR INTERNATIONAL LIMITED 2Q2012 Results Briefing Aug 15, 2012
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: Agenda
Agenda 1 2Q2012 Financial Performance 2 Business Outlook 3 Questions and Answers 2
Slide 4: 2Q2012 Financial Performance
2Q2012 Financial Performance 3
Slide 5: Overview of Results
Overview of Results 2Q12 (US$m) vs 2Q11 Revenue 11,020 4% EBITDA 329 -48% Net profit 117 -70% Earnings per share 1.8 -71% in US cents (fully diluted) Net profit – excl non- 172 -55% operating items 1H12 (US$m) vs 1H11 Revenue 21,491 7% EBITDA 897 -30% Net profit 373 -52% Earnings per share 5.8 -53%
Slide 6: Revenues
Revenues 2Q12 Key Highlights Revenue up 4% mainly on volume increase - Palm and Laurics volume up 17% - Oilseeds and Grains volume down 1% - Consumer Pack volume up 7% - Sugar Merchandising and Processing volume up 87% 5
Slide 7: Net Profit
Net Profit 2Q12 Key Highlights Net profit declined by 70%; excluding non-op items, declined 55% Largely due to negative crush margins in Oilseeds & Grains Lower prices, higher production costs and lower production yield for Plantations Unfavourable weather and lower merchandising profits in Sugar 6
Slide 8: Business Segment Results: Profit before Tax
Business Segment Results: Profit before Tax US$ million 2Q12 2Q11 ∆ 1H12 1H11 ∆ Merchandising & Processing 120.1 282.5 -57% 302.5 628.1 -52% Palm & Laurics 160.1 153.1 5% 395.0 306.6 29% Oilseeds & Grains (40.0) 129.4 n.m. (92.5) 321.5 n.m. Consumer Products 18.0 1.0 >100% 68.2 37.8 81% Plantations
Slide 9: Business Segment results: Palm and Laurics
Business Segment results: Palm and Laurics 2Q12 2Q11 ∆ 1H12 1H11 ∆ Revenue (US$ million) 6,008 5,798 4% 11,439 10,891 5% Sales volume (‘000 MT) 5,623 4,824 17% 10,792 9,116 18% Profit before tax (US$ 160.1 153.1 5% 395.0 306.6 29% million) Profit before tax per MT 28.5 31.7 -10% 36.6 33.6 9% (US$/MT
Slide 10: Business Segment results: Oilseeds and Grains
Business Segment results: Oilseeds and Grains 2Q12 2Q11 ∆ 1H12 1H11 ∆ Revenue (US$ million) 3,086 3,009 3% 5,776 5,336 8% Sales volume (‘000 MT) 4,588 4,620 -1% 8,996 8,130 11% Profit before tax (US$ (40.0) 129.4 n.m. (92.5) 321.5 n.m. million) Profit before tax per MT (8.7) 28.0 n.m. (10.3) 39.5 n.
Slide 11: Business Segment results: Consumer Products
Business Segment results: Consumer Products 2Q12 2Q11 ∆ 1H12 1H11 ∆ Revenue (US$ million) 1,380 1,278 8% 3,271 3,007 9% Sales volume (‘000 MT) 897 837 7% 2,103 1,959 7% Profit before tax (US$ 18.0 1.0 >100% 68.2 37.8 81% million) Profit before tax per MT 20.0 1.2 >100% 32.4 19.3 68% (US$/MT) • Sales
Slide 12: Business Segment results: Plantations & Palm Oil Mills
Business Segment results: Plantations & Palm Oil Mills 2Q12 2Q11 ∆ 1H12 1H11 ∆ Revenue (US$ million) 416.1 524.5 -21% 849.8 921.3 -8% Profit before tax (US$ million) 79.2 145.0 -45% 178.0 226.8 -22% Planted area (ha) 248,245 248,326 < 1% 248,245 248,326 < 1% Mature area harvested (ha) 212,056 198,33
Slide 13: Plantation Age Profile
Plantation Age Profile 30 June 2012 0 to 3 yrs 4 - 6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Indonesia 12,601 67,290 60,226 19,909 25,449 185,475 Malaysia 2,896 3,048 18,137 15,496 18,515 58,092 Africa 729 743 1,749 3 1,454 4,678 Total planted area 16,226 71,081 80,112 35,408 45,418 248,245 % of to
Slide 14: Plantation Land Bank
Plantation Land Bank • Total land bank of approximately 331,000 ha in Indonesia, Malaysia and Africa • Continue to actively look for land in Indonesia and Africa • Land bank holding in Indonesia is affected by: − Differences between mapping basis in the respective master plans under relevant local g
Slide 15: Business segment results: Sugar Milling
Business segment results: Sugar Milling 2Q12 2Q11 ∆ 1H12 1H11 ∆ Revenue (US$ million) 112 184 -39% 163 226 -28% Sales volume (‘000 MT) 257 264 -3% 342 344 -1% Profit before tax (US$ million) (79.1) (49.6) 60% (137.1) (72.2) 90% Excluding non-operating items*: Profit before tax from (71.9) (68.9) 4%
Slide 16: Business segment results: Sugar Merchandising and Processing
Business segment results: Sugar Merchandising and Processing 2Q12 2Q11 ∆ 1H12 1H11 ∆ Revenue (US$ million) 728 469 55% 1,135 795 43% Sales volume (‘000 MT) 1,039 557 87% 1,534 916 68% Profit before tax (US$ million) 18.9 42.4 -56% 29.0 57.8 -50% Excluding non-operating items*: Profit before tax from
Slide 17: Non-Operating Items
Non-Operating Items In US$ million 2Q12 2Q11 1H12 1H11 Foreign exchange gain arising from intercompany loans to subsidiaries (19.7) 42.2 (13.7) 40.3 Net gain/(loss) from investment securities (26.5) (3.7) 19.2 (3.9) Changes in the fair value of derivatives embedded in convertible bonds - (32.3) (0.3
Slide 18: Cashflow
Cashflow US$ million 1H12 1H11 FY11 Operating cashflow before working capital changes 831 1,159 2,530 Net cashflow from operating activities (300) (486) 1,948 Less : Investment in subsidiaries and associates (216) (182) (356) Capital expenditure (887) (663) (1,554) Net proceeds from bank borrowings
Slide 19: Gearing
Gearing US$ million As at As at June 30, 2012 December 31, 2011 Debt/Equity (x) 0.93 0.79 - Net Debt * 12,492 10,530 - Shareholders' funds 13,387 13,370 Adjusted Debt/Equity (x) 0.38 0.29 - Liquid working capital ** 7,357 6,687 - Adjusted Net Debt 5,135 3,843 Interest coverage (x) # 5.7 9.2 * Net De
Slide 20: Funding and Liquidity
Funding and Liquidity As at June 30, 2012 US$ million Available Utilised Balance Credit facilities : Committed 7,525 7,110 415 Trade finance 23,982 12,114 11,868 Short term 647 312 335 Total credit facilities 32,154 19,536 12,618 Cash & cash equivalents 1,106 Total liquidity 13,724 • 62% of utilised
Slide 21: Key Indicators
Key Indicators 6 months ended 6 months ended Year ended June 30, 2012 June 30, 2011 December 31, 2011 Return on Average Equity 5.6%* 12.7% * 12.7% Return on Average Capital 3.6%* 7.6% * 7.5% Employed Return on Average Assets 2.1%* 4.5% * 4.6% in US cents EPS (fully diluted) 5.8 12.2 25.0 NTA per sha
Slide 22: Business Outlook
Business Outlook • Sound business model, long term prospects remain intact • Well-positioned to capture the growth in demand for agricultural commodities, especially in Asia and emerging markets like Africa • In the near term, the operating environment remains challenging, particularly in China, due
Slide 23: Questions & Answers
Questions & Answers ilma We Invest - You Harvest 22