Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — FY2017 Earnings Presentation
22 slides from Golden Agri-resources's earnings presentation, Feb 27, 2018
Slide 1: Full Year 2017 Results Performance
Golden Agri-Resources Ltd Full Year 2017 Results Performance 27 February 2018
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 10 4 Strategy and Outlook 16 5 Appendix 20 slide 3
Slide 4: Executive Summary
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Slide 5: Executive Summary
Executive Summary Strong full year performance with recovery in upstream production • FY 2017 vs FY 2016 EBITDA1 (US$ million) 510 499 Revenue US$7,508 mn 4% EBITDA US$665 mn 16% 379 Underlying Profit1 US$254 mn 36% 380 Palm product output 2.72 mn MT 9% CPO FOB price US$682/MT 3% 250 181 158 140 121
Slide 6: Financial Highlights
Financial Highlights slide 6
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance US$ million FY 2017 FY 2016 YoY 4Q 2017 4Q 2016 YoY Revenue 7,508 7,209 4% 1,923 2,138 -10% Gross Profit 1,097 1,014 8% 261 308 -15% EBITDA 665 572 16% 156 179 -12% Underlying Profit1 254 186 36% 37 66 -44% Net gain/(loss) from changes in fair value of biological a
Slide 8: Financial Position
Financial Position Prudent balance sheet with improving gearing ratios US$ million 31-Dec-17 31-Dec-16 Change Total Assets 8,138 8,306 -2% Cash and short-term investments 394 355 11% Fixed Assets1 3,692 3,891 -5% Total Liabilities 4,029 4,210 -4% Adjusted Net Debt2 1,684 1,745 -3% Net Debt3 2,598 2,
Slide 9: Interim Dividend
Interim Dividend The Board proposes final dividend distribution of 0.116 Singapore cents per share, subject to approval from shareholders. Combined with the interim dividend, it represents 30% of our underlying profit for FY 2017 2017 Cash Dividend 2014 2015 2016 Interim Final Total Dividend per sha
Slide 10: Segmental Performance
Segmental Performance slide 10
Slide 11: Segmental Results Plantations and Palm Oil Mills
Segmental Results Plantations and Palm Oil Mills Substantial growth in FY 2017 EBITDA as palm production recovers from El Niño FY 2017 FY 2016 YoY 4Q 2017 4Q 2016 YoY Revenue (US$ million) 1,673 1,557 7% 421 579 -27% EBITDA (US$ million) 499 379 32% 121 140 -14% EBITDA margin 30% 24% 6% 29% 24% 5% F
Slide 12: Plantation Area
Plantation Area GAR’s oil palm plantations expanded to over 500,000 ha and continue to be lead in scale and operational excellence Mature Area - ha Planted Area - ha Age Profile as of 31 Dec 2017 9% 5% 8% 476,965 466,440 502,847 488,252 43,554 25,882 101,214 102,852 102,255 38,172 98,626 36% 182,677
Slide 13: Segmental Results Palm and Lauric
Segmental Results Palm and Lauric Healthy EBITDA margin despite declining trend in prices and competitive market environment FY 2017 FY 2016 YoY 4Q 2017 4Q 2016 YoY Revenue (US$ million) 6,579 6,262 5% 1,666 1,837 -9% Sales Volume (‘000 tonnes) 8,878 8,974 -1% 2,222 2,475 -10% EBITDA (US$ million) 1
Slide 14: Strong Position Across the Downstream Value Chain
Strong Position Across the Downstream Value Chain Origination of Processing & Logistic Destination Market Raw Materials Product Customisation Excellence Expertise Sourcing with • Completion of second • Golden Stena is the • Increasing presence increasing traceability: biodiesel plant and largest pal
Slide 15: Segmental Results Oilseeds and Others
Segmental Results Oilseeds and Others Oilseed business maintains its positive contribution supported by prudent management FY 2017 FY 2016 YoY 4Q 2017 4Q 2016 YoY Oilseeds Revenue (US$ million) 661 753 -12% 190 263 -28% Sales Volume (‘000 tonnes) 1,322 1,424 -7% 382 471 -19% EBITDA (US$ million) 8 1
Slide 16: Strategy and Outlook
Strategy and Outlook slide 16
Slide 17: Strategic Priorities
Strategic Priorities Build on core competitive strengths and leverage scale to maximise long-term shareholder returns Breakthrough competitive edge with cutting edge technology To strengthen our position as the world’s leading palm oil plantation company Operational Be the best, Yield Cost Efficienc
Slide 18: Growth Strategy and Outlook
Growth Strategy and Outlook Capitalising on the robust fundamentals of the industry, GAR continues to enhance its integrated operation capabilities to optimise profit opportunities across the value chain Upstream • Focus on replanting with higher-yielding seeds to sustain production growth • Continu
Slide 19: Towards Responsible Palm Oil Production
Towards Responsible Palm Oil Production Progress on fully traceable palm oil • 100% Traceability to the Plantation (TTP) achieved for GAR- owned mills - 39% of our total supply chain fully traceable • Engagement with suppliers: with full TTP, GAR can now reach 72 dealers buying from 11,000 smallhold
Slide 20: Appendix
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Slide 21: Age Profile
Age Profile The average age of GAR’s plantations is 16 years, securing the long-term growth of its production Immature Young Prime 1 Prime 2 Old Total hectares (0-3 years) (4-6 years) (7-18 years) (19-25 years) (>25 years) 31 December 2017 Nucleus 24,244 33,134 180,682 130,807 31,128 399,995 Plasma
Slide 22: 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 slide 22