Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — Q3 2019 Earnings Presentation
19 slides from Golden Agri-resources's earnings presentation, Nov 14, 2019
Slide 1: Interim Performance Presentation, Third quarter ended 30 September 2019
GOLDEN AGRI-RESOURCES LTD Interim Performance Presentation Third quarter ended 30 September 2019 14 November 2019 11
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: Contents
CONTENTS 1 Executive Summary 4 2 Financial Highlights 6 3 Segmental Performance 9 4 Strategy and Outlook 13 5 Appendix 17 33
Slide 4: Executive Summary
EXECUTIVE SUMMARY gar agribusiness and food
Slide 5: Third quarter 2019 performance improved quarterly with higher plantation output
EXECUTIVE SUMMARY Third quarter 2019 performance improved quarterly with higher plantation output EBITDA (US$ million) 325 305 • 9M 2019 vs 9M 2018 Revenue US$4,730 mn 14% 260 EBITDA US$305 mn 18% Underlying loss1 US$12 mn n.m 195 Palm product output 2.13 mn MT 5% 167 CPO FOB price US$494/MT 18% 138
Slide 6: Financial Highlights
gar FINANCIAL HIGHLIGHTS agribusiness and food
Slide 7: Financial Performance
FINANCIAL PERFORMANCE US$ million 9M 2019 9M 2018 YoY 3Q 2019 2Q 2019 QoQ Revenue 4,730 5,515 ‐14% 1,563 1,549 1% Gross Profit 532 745 ‐29% 188 152 24% EBITDA 305 370 ‐18% 107 77 38% Underlying (Loss)/Profit1 ‐12 79 n.m 3 ‐27 n.m Net gain/(loss) from changes in fair value of biological assets2 0.4 ‐
Slide 8: Financial Position
FINANCIAL POSITION US$ million 30‐Sep‐19 31‐Dec‐18 Change Total Assets 8,497 8,546 ‐0.6% Cash and short‐term investments 513 545 ‐6% Fixed assets1 3,720 3,716 0.1% Total Liabilities 4,246 4,236 0.2% Net Debt2 2,019 1,734 16% Total debt3 3,129 3,010 4% Cash, short‐term investments and liquid working
Slide 9: Segmental Performance
SEGMENTAL PERFORMANCE gar agribusiness and food
Slide 10: Segmental Results: Plantations and Palm Oil Mills
SEGMENTAL RESULTS Plantations and Palm Oil Mills 9M 2019 EBITDA impacted by lower CPO prices and output 9M 2019 9M 2018 YoY 3Q 2019 2Q 2019 QoQ Revenue (US$ million) 930 1,100 ‐16% 356 266 34% EBITDA (US$ million) 167 305 ‐45% 70 36 95% EBITDA margin 18% 28% ‐10% 20% 14% 6% CPO FOB Price (US$/MT) 49
Slide 11: Plantation Area
PLANTATION AREA Focus on productivity growth through replanting and technological innovation Mature Area ‐ ha Planted Area ‐ ha Age Profile as of 30 Sep 2019 6% 495,247 498,395 14% 6% 467,621 467,261 27,626 104,138 103,480 67,825 101,740 101,436 31,198 365,881 365,825 391,109 394,915 162,727 205,871
Slide 12: Segmental Results: Palm, Laurics and Others
SEGMENTAL RESULTS Palm, Laurics and Others The integrated business model has helped GAR to weather low CPO prices 9M 2019 9M 2018 YoY 3Q 2019 2Q 2019 QoQ Revenue (US$ million) 4,698 5,469 ‐14% 1,547 1,542 0.3% Sales Volume (‘000 tonnes) 8,067 7,622 6% 2,697 2,650 1.8% EBITDA (US$ million) 138 64 116
Slide 13: Strategy and Outlook
STRATEGY AND OUTLOOK gar agribusiness and food
Slide 14: Growth Strategy and Outlook
GROWTH STRATEGY AND OUTLOOK GAR continues to enhance its integrated operation capabilities to optimise profit opportunities and cash flow generation across the value chain Upstream • Focus on replanting with higher‐yielding seeds to sustain production growth • Accelerated efforts in yield improvemen
Slide 15: Indonesia Biodiesel
INDONESIA BIODIESEL Indonesia growing biodiesel mixture mandate is a major catalyst to the industry • Global feedstock for biodiesel grew by 14% to 41 million MT in 2018 and expected to further expand by 10% in 2019 • Indonesia implemented a subsidised B20 programme in 2016 with full implementation
Slide 16: Towards Responsible Palm Oil Production
TOWARDS RESPONSIBLE PALM OIL PRODUCTION Progress on Traceability to the Plantation • Full TTP for nearly 70% of the palm supply chain • 69 third‐party mills have reported full TTP with around 190 taking part in the exercise • On track to achieve 100% TTP for palm supply chain at end 2020 Managing Fi
Slide 17: Appendix
APPENDIX gar agribusiness and food
Slide 18: Age Profile
AGE PROFILE Immature and younger estates use newer‐generation higher‐yielding planting materials that will further boost production growth in the future Immature Young Prime 1 Prime 2 Old Total hectares (0‐3 years) (4‐6 years) (7‐18 years) (19‐25 years) (>25 years) 30 September 2019 Nucleus 25,228 2
Slide 19: 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 19 19
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