Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Olam International — Q1 2017 Earnings Presentation
24 slides from Singapore Exchange's earnings presentation, May 15, 2017
Slide 1: Olam International Limited Q1 2017 Results Briefing
Important instruction: Place an image in exactly Olam International Limited the same position as this Q1 2017 Results Briefing grey box. Q1 2016 May Results Briefing 15, 2017 Select the image. May 13, 2016 [Mac] in the menu, select ‘Arrange’ and then ‘Send to Back’. [PC] right click and then ‘send t
Slide 2: Presenters
Presenters Sunny Verghese Co-Founder and Group CEO A. Shekhar Executive Director and Group COO N. Muthukumar President and Group CFO 2
Slide 3: Notice
Notice This presentation should be read in conjunction with Olam International Limited’s Financial Statements for the First Quarter ended March 31, 2017 (“Q1 2017”) and Management Discussion and Analysis lodged on SGXNET on May 15, 2017. 3
Slide 4: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements This presentation may contain statements regarding the business of Olam International Limited and its subsidiaries (‘Group’) that are of a forward-looking nature and are therefore based on management’s assumptions about future developments. Such forward
Slide 5: Agenda
Agenda • Q1 2017 highlights • Financial and operating performance • Segmental analysis • Balance sheet and cash flow • Key takeaways 5
Slide 6: Q1 2017 highlights
vy Olam Q1 2017 highlights
Slide 7: Q1 2017 highlights
Q1 2017 highlights • PATMI grew 26.6% to S$143.9 million • Strong underlying growth with Operational PATMI up 14.1% despite higher depreciation and amortisation, and finance costs • EBITDA grew 19.8% to S$398.6 million • Positive Free Cash Flow to Firm (FCFF) at S$134.9 million • Continued to execut
Slide 8: Financial and operating performance
Financial and operating performance
Slide 9: P&L Analysis
P&L Analysis SGD Mn Q1 2017 Q1 2016 % Change Volume ('000 MT) 4,461.7 2,965.5 50.5 Revenue 5,804.2 4,761.4 21.9 Net gain/(loss) in fair value (2.0) (5.3) (62.3) of biological assets EBITDA 398.6 332.8 19.8 Depreciation & (88.6) (80.5) 10.1 Amortisation Net Finance costs (139.6) (99.4) 40.4 Taxation
Slide 10: EBITDA and Invested Capital
EBITDA and Invested Capital SGD Mn EBITDA SGD Mn Invested Capital 16,649.0 16,964.4 1,400 18,000 1,202.8 16,000 1,200 1,129.0 14,374.7 14,241.6 1,085.2 14,000 1,000 11,560.7 12,000 8,852.8 9,045.2 800 10,000 7,652.8 7,439.6 600 8,000 6,017.2 398.6 6,000 400 332.8 4,000 7,796.2 7,919.2 200 5,543.5 6,
Slide 11: Segmental analysis
Segmental analysis
Slide 12: Edible Nuts, Spices & Vegetable Ingredients
Edible Nuts, Spices & Vegetable Ingredients SGD Mn EBITDA SGD Mn Invested Capital 450 3,701.4 393.5 4,000 3,642.7 400 3,363.6 3,463.0 360.5 3,500 3,237.3 350 331.8 3,000 1,421.0 1,436.0 300 1,415.0 2,500 1,587.1 1,201.0 250 200 2,000 150 138.0 1,500 100 80.2 1,000 2,048.0 2,221.7 2,036.3 2,265.4 1,7
Slide 13: Confectionery & Beverage Ingredients
Confectionery & Beverage Ingredients SGD Mn EBITDA SGD Mn Invested Capital 450 7,000 407.2 6,109.5 6,397.2 5,680.9 5,785.4 400 6,000 350 5,000 300 275.6 284.0 4,000 3,246.9 4,940.4 250 4,568.7 4,329.7 4,478.0 200 3,000 150 2,000 105.2 2,745.4 100 75.0 1,000 50 1,351.2 1,540.8 1,307.4 1,456.8 501.5 0
Slide 14: Food Staples & Packaged Foods
Food Staples & Packaged Foods SGD Mn EBITDA SGD Mn Invested Capital 350 330.2 5,000 4,522.1 4,660.2 295.2 300 4,000 1,450.0 250 3,075.1 3,230.6 1,498.3 3,313.9 212.1 200 3,000 817.0 708.7 915.0 150 118.3 2,000 100 85.7 3,023.8 3,210.2 1,000 2,366.4 2,315.6 2,496.9 50 0 0 2014 2015 2016 Q1 2016 Q1 20
Slide 15: Industrial Raw Materials, Ag Logistics & Infrastructure
Industrial Raw Materials Ag Logistics & Infrastructure SGD Mn EBITDA SGD Mn Invested Capital 250 2,500 2,220.9 2,091.3 215.6 1,872.0 1,917.5 1,844.9 200 185.1 2,000 1,500 1,212.7 1,106.0 150 135.2 911.9 974.2 884.5 100 1,000 65.2 62.2 50 500 1,005.6 1,008.2 960.4 985.3 897.8 0 0 2014 2015 2016 Q1 20
Slide 16: Balance sheet and cash flow
vy Olam Balance sheet and cash flow
Slide 17: Balance sheet
Balance sheet SGD Mn Change 31-Mar-2016 vs Mar 16 (assuming Change (assuming 31-Mar-17 31-Mar-16 PPA vs Mar 16 PPA exercise exercise completed) completed) Uses of Capital Fixed Capital 8,315.2 6,680.0 1,635.2 7,345.8 969.4 Working Capital 8,559.0 8,397.7 161.3 8,376.2 182.8 Cash 2,643.7 1,600.5 1,04
Slide 18: Balance sheet: Optimising tenure and borrowing mix
Balance sheet Optimising tenure and borrowing mix Initiated debt refinancing programmes in Q1 2017: • Outstanding 7.0% Perpetual Capital Securities unchanged at S$235.8 million as of end-Mar 2017 post call-back on Mar 1-7; to redeem all outstanding Securities as at Sep 1, 2017 • Issued US$300.0 mill
Slide 19: Cash flow analysis
Cash flow analysis SGD Mn Cash Flow Summary Q1 2017 Q1 2016 3M YOY 2016 Operating Cash flow (before Interest & Tax) 401.8 345.4 56.4 1,243.5 Changes in Working Capital (74.7) (35.5) (39.2) (227.7) Net Operating Cash Flow 327.1 309.9 17.2 1,015.8 Net interest paid (176.4) (127.8) (48.6) (347.7) Tax p
Slide 20: Gearing
Gearing SGD Mn Change Change 31-Mar-17 31-Dec-16 31-Mar-16 vs Dec 16 vs Mar 16 Gross debt 14,117.5 13,670.5 447.0 11,977.4 2,140.1 Less: Cash 2,643.7 2,144.0 499.7 1,600.5 1,043.2 Net debt 11,473.8 11,526.5 (52.7) 10,376.9 1,096.9 Less: Readily marketable 5,773.6 5,909.2 (135.6) 5,097.8 675.8 invent
Slide 21: Liquidity position
Liquidity position S$ million as at Mar 31, 2017 14,118 7,759 Short Term 5,612 1,107 17,284 5,774 Long Term 8,505 2,644 Cash and short-term RMI* Secured Receivables Unutilised bank lines Available Liquidity Total Borrowings fixed deposits • Available liquidity sufficient to cover all repayment and C
Slide 22: Key takeaways
vy Olam Key takeaways
Slide 23: Key takeaways
Key takeaways • Improved operational performance in Q1 2017 led by Edible Nuts, Spices & Vegetable Ingredients and Food Staples & Packaged Foods segments • Continue to focus on turning around underperforming businesses, ensuring gestating businesses reach full potential and sustaining positive free
Slide 24: Q1 2017 Results Briefing
Q1 2017 Results Briefing olamgroup.com/investor-relations/ ir@olamnet.com