Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — Q1 2007 Earnings Presentation
29 slides from Golden Agri-resources's earnings presentation, May 15, 2007
Slide 1: Interim Performance Presentation
Interim Performance Presentation Q1 2007 : quarter ended 31st March 2007 15th May 2007 15-May-07 5:46 PM Unique id: 036458 Documentum: GARL-Pegasus-Main.ppt 1 1
Slide 2: Table of Contents
Table of Contents SECTION 1 Executive Summary 3 SECTION 2 Financial Highlights 5 SECTION 3 Operational Highlights 11 SECTION 4 Sales Highlights 16 SECTION 5 Growth Strategy 21 SECTION 6 Key Developments 26 2 2
Slide 3: Section 1 Executive Summary
‘ea\ gar VS ZF Jal ns and food i aes Section 1 Executive Summary
Slide 4: Executive Summary
Executive Summary Q1 2007 vs. Q1 2006 Average CPO Price (FOB Belawan) US$ 546/ton 46% Palm Products Production 412,000 ton 12% EBITDA US$ 88mn 43% Net income US$ 219mn 63% Interim Dividend S$0.02 Equity Placement 325.3mn shares S$ 800mn 4 4
Slide 5: Section 2 Financial Highlights
Section 2 Financial Highlights
Slide 6: Strong Growth in Revenue and Net Income
Strong Growth in Revenue and Net Income Strong revenue growth Improving net income 1,890 (000’ tons) 1200 1,795 500 1,850 1,667 1000 1,600 CAGR: 22% 400 (’04 – ’06) 1,130 CAGR: 168% 800 1,350 (’04 – ’06) (US$ mn) 819 300 760 1,100 (US$ mn) 600 471 850 200 ` 63% 400 470 412 600 233 219 100 200 350 27
Slide 7: Financial Performance
Financial Performance (in US$ mn) Q1 Q1 % 2006 1 2007 increase/(decrease) Revenue 268.7 275.3 2.5% Gross profit 67.6 102.7 51.9% Gross profit Margin 25.1% 37.3% 48.6% Net gain from biological assets 178.1 164.9 (7.4%) Operating income 224.9 242.2 7.7% EBITDA 61.6 88.2 43.3% Tax (56.2) (62.3) 10.9% N
Slide 8: Q1 2007 Financial Performance
Q1 ~ 2007 Financial Performance (in US$ mn) Indonesia Operation China Operation Q1 2006 Q1 2007 % increase/ Q1 2006 Q1 2007 % increase/ decrease decrease Revenue 184.6 203.6 10.3% 84.2 71.7 (14.7%) Gross Profit 60.0 89.9 49.7% 7.5 12.8 69.5% Gross Profit Margin 32.5% 44.1% 35.7% 8.9% 17.8% 100.0% EB
Slide 9: Financial Position
Financial Position Continuous growth in total assets with a low gearing ratio (in US$ mn) FY Q1 % 2006 1 2007 increase/(decrease) Total Assets 2,985.4 3,303.3 10.6% Cash 130.4 62.7 (51.9%) Short Term Investment 3.7 10.3 180.3% Total Liabilities 1,064.1 1,142.5 7.4% Interest Bearing Debt 477.4 514.6
Slide 10: Dividend
Dividend 2.5 1 2.1 2.0 2.0 S$ Cents Per Share 1.5 1.0 1.0 0.5 0.0 FY 05 FY 06 Q1 07 1 Equivalent to US$ 0.014/share for FY 2006 dividend Dividend Per Share GAR has been increasing the dividend payout to shareholders and will always evaluate the optimum utilization of its income 10 10
Slide 11: Section 3 Operational Highlights
Section 3 Operational Highlights
Slide 12: Operational Performance ~ Area
Operational Performance ~ Area (in ha) 31 Dec Q1 Q1 Q1’06 – Q1’07 2006 2006 2007 %increase/(decrease) Planted Area 306,851 293,145 338,185 15.4% Nucleus 226,185 213,365 257,507 20.7% Plasma 80,666 79,780 80,678 1.1% Mature Area 271,140 275,436 292,609 6.2% Nucleus 192,903 197,213 213,828 8.4% Plasma
Slide 13: Operational Performance ~ Production
Operational Performance ~ Production FFB Production Palm Products Production (000’Tons) (000’Tons) (Ton/Ha) 7,000 2,000 21.43 22.13 24 20.23 6,000 1,750 18.37 337 20 315 1,595 1,624 1,500 299 5,000 1,463 257 16 1,203 1,250 4,000 1,553 1,000 1,479 12 3,000 750 1,367 4,191 4,275 4,377 5.31 8 2,000 3,7
Slide 14: Historical FFB Production Trend
Historical FFB Production Trend Normal condition Drought condition 1,800 1,699 1,624 1,600 1,554 1,567 1,462 1,392 1,380 1,400 1,348 In Thousand Ton 1,225 1,200 1,000 800 600 400 200 - Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Historically, FFB production increased in t
Slide 15: Operational Performance ~ Production
Operational Performance ~ Production Q1 Q1 % 2006 2007 increase/ (decrease) FFB Production (tons) 1,461,752 1,380,077 (5.6%) FFB Yield (ton/ha) 5.3 4.7 (11.1%) Extraction Rate OER 23.60% 23.62% KER 5.11% 5.24% Palm Products Production (tons) 470,042 411,727 (12.4%) CPO (tons) 386,382 336,955 (12.8%)
Slide 16: Section 4 Sales Highlights
‘ea\ gar VS ZF Jal ns and food i aes Section 4 Sales Highlights
Slide 17: Business Performance
Business Performance Revenue contribution Revenue contribution ~ By Products Soybean China Unbranded meal Local palm product 10% Indonesia 26% 30% Soybean Local oil 40% 9% Branded Others products 1% 11% Indonesia Export PK CPO 34% 2% 37% Indonesia Operation ~ By Products China Operation ~ By Product
Slide 18: Sales Volume
Sales Volume Q1 Q1 % 2006 2007 increase/ (decrease) Indonesia Operation CPO 247,000 225,000 (8.7%) PK 37,000 23,000 (38.1%) Refined Products 217,000 206,000 (5.1%) Branded Cooking Oil 21,000 18,000 (14.4%) Margarine 11,000 13,000 15.5% Unbranded 176,000 160,000 (9.1%) China Operation Branded Cooking
Slide 19: CPO Price Trend
CPO Price Trend New demand US$/Ton from bio-diesel $900 India’s CPO import tax reduced $800 $700 $600 $500 $400 $300 China lifted quota El-Nino effect reduce import on palm oil production $200 $100 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- 06 06 06 06 06 06
Slide 20: Bio-diesel Capacity
Bio-diesel Capacity New capacity in 2007 is at 1.6 million ton Diesel Diesel Local market is (mn tonnes) Consumed for Transportation B5 B10 heated in 1-2 years Malaysia 8.7 4.6 0.4 0.9 Indonesia 30.4 8.0 1.5 3.0 Total 39.1 12.6 1.9 3.9 Size Completion Size Completion Company Plant location (tonnes)
Slide 21: Section 5 Growth Strategy
‘ea\ gar VS ZF Jal ns and food i aes Section 5 Growth Strategy
Slide 22: Growth Strategy
Growth Strategy Commitment to sound business strategies and continuous operational excellence will enable GAR to sustain growth and profitability Continued Growth and Profitability Food Industrial Bio-Fuel Strong Plantation Foundation Largest in the world with 338,000 ha planted Future expansion of
Slide 23: Q1 2007 Growth Achievements and Targets
Q1 2007 Growth Achievements and Targets Plantation Target planted area of 40,000 ha for FY 2007 Achieved additional planted area of 31,000 ha during Q1 07 - 3,000 ha of new planting - 28,000 ha of acquired plantation Downstream Completed new speciality fat factory in Ningbo, China with capacit
Slide 24: Bio-diesel JV ~ Transaction Highlights
Bio-diesel JV ~ Transaction Highlights Parties : Blue Sky Golden Fulcrum Ltd (wholly owned subsidiary of GAR) ~ (50%) Fulcrum Biofuels LLC ~ (50%) Purpose : To initially build and operate a bio-diesel plant in Dumai, Sumatra, Indonesia and market the bio-diesel in the US market Capacity : 400,000MT
Slide 25: Bio-diesel JV Structure
Bio-diesel JV Structure GAR Fulcrum 50% 50% • 200,000 tons p.a. first 3 • Logistics & marketing yrs, then 100,000 tons • Hedging & Risk p.a. on year 4-5 at US$ management 585/ton JV Co. • Guaranteed EBITDA/ton • Additional 200,000 ton of US$ 75/ton for p.a. at floating price 200,000 ton p.a. for min
Slide 26: Section 6 Key Developments
‘ea\ gar VS ZF Jal ns and food i aes Section 6 Key Developments
Slide 27: Equity Placement ~ Transaction Highlights
Equity Placement ~ Transaction Highlights Deal type : Placement of new shares (Reg S only) Placement price : S$ 2.4588 (7.22% discount to the closing price on 19th April 2007) Size of the deal : 325,300,000 new shares (representing 15% of pre-placement share capital) S$ 800m or equivalent to US$ 530
Slide 28: Equity Placement ~ Demand Analysis
Equity Placement ~ Demand Analysis Demand by investor type Demand by geography USA Private bank 5% 13% Others 3% Long fund Hedge fund Europe Singapore 63% 21% 38% 28% Bank HK 3% 1% UK 25% Book of demand comprised mainly institutional investors with Long Funds dominating with 63% contribution Pri
Slide 29: Contact Us
Contact Us If you need further information, please contact: Golden Agri-Resources Ltd c/o 3 Shenton Way #17-03 Shenton House Singapore 068805 Telephone : +65 62207720 Facsimile : +65 62207020 Contact Person : Rafael B. Concepcion, Jr. (rafaelc@goldenagri.com.sg) Suwandy Chen (swd@goldenagri.com.sg)
Golden Agri-Resources — Q1 2007 Earnings Presentation on 6ix