Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — H1 2010 Earnings Presentation
25 slides from Golden Agri-resources's earnings presentation, Aug 11, 2010
Slide 1: Interim Performance Presentation 1H 2010
Interim Performance Presentation 1H 2010 : first half period ended 30th June 2010 11 August 2010 0
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: Table of Contents
Table of Contents Section 1 Executive Summary 3 Section 2 Financial Highlights 5 Section 3 Plantation Highlights 11 Section 4 Downstream Highlights 15 Section 5 Growth Strategy 18 Section 6 Recent Developments 20 2
Slide 4: Executive Summary
li ar IJ ZF Gal ne and food iy Section 1 Executive Summary
Slide 5: Executive Summary
Executive Summary Strong results for 1H 2010 compared to same period last year despite lower production Price (US$/MT) EBITDA (US$ million) Production (‘000 MT) • 1H 2010 performance: Revenue up by 38%, 275 1,400 increase in EBITDA by 76% and Net Profit more than double, compared to 1H 2009 1,200 22
Slide 6: Financial Highlights
Section 2 Financial Highlights
Slide 7: Financial Performance – 1H 2010
Financial Performance – 1H 2010 US$ million 1H 2010 1H 2009 Change Revenue 1,351 978 38% Gross Profit 342 194 77% EBITDA 261 148 76% Interest on borrowings -21 -24 -14% Depreciation and amortisation -42 -32 31% Foreign exchange gain/(loss), net 15 -8 n.m. Net Profit attributable to owners of the Com
Slide 8: Financial Performance – 2Q 2010
Financial Performance – 2Q 2010 US$ million 2Q 2010 2Q 2009 YoY 1Q 2010 QoQ Change Change Revenue 726 566 28% 625 16% Gross Profit 168 130 29% 174 -3% EBITDA 120 103 17% 140 -14% Interest on borrowings -11 -13 -18% -10 10% Depreciation and amortisation -24 -16 48% -18 32% Foreign exchange gain/(loss
Slide 9: Segmental Results
Segmental Results Strong contribution from our Indonesia operations supported by China operations (in US$ million) Indonesia Operations China Operations 1H 2010 1H 2009 Change 1H 2010 1H 2009 Change Revenue 1,082 717 51% 269 261 3% Gross Profit 328 180 82% 14 14 5% Gross Profit Margin 30% 25% 5% 5%
Slide 10: Revenue By Product and Geographical Location
Revenue By Product and Geographical Location 1H 2010 revenue of US$1.4 billion mainly from CPO and refined palm oil based products Revenue - By Product Revenue - By Country Others PK 5% 1% Soybean Oil 4% Indo Local Soybean Meal China Local 17% 9% 20% CPO Branded 44% Products 9% Indo Export Unbranded
Slide 11: Financial Position
Financial Position Balance sheet remained strong with ample cash and low gearing (in US$ million) 30-Jun-10 31-Dec-09 Change Total Assets 8,015 7,900 1% Cash and Short-Term Investments 228 353 -36% Trade Receivables and Inventories 547 523 5% Fixed Assets1 6,596 6,460 2% Total Liabilities 2,364 2,36
Slide 12: Plantation Highlights
Section 3 Plantation Highlights
Slide 13: Plantation Area
Plantation Area GAR is the largest Indonesian plantation company with integrated operations (in ha) 30 Jun 30 Jun 30 Jun 2009/2010 31 Dec 2010 2009 % increase 2009 Planted Area 433,178 401,407 7.9% 427,253 Nucleus 344,308 316,032 8.9% 339,818 Plasma 88,870 85,375 4.1% 87,435 Mature Area 364,109 334,
Slide 14: Age Profile
Age Profile GAR’s long-term growth is supported by favourable age profile of planted area underpinned by large immature and young plantations Immature Young Prime Old 1 Old 2 Total (in ha) (0-3 years) (4-6 years) (7-18 years) (19-25 years) (>25 years) 1H 2010 Nucleus 62,260 69,837 153,869 53,314 5,0
Slide 15: Production Performance
Production Performance Production showed quarter-on-quarter improvement, but not as high as last year 1H 2010 1H 2009 Change 2Q 2010 1Q 2010 Change FFB Production (‘000 tonne) 3,129 3,396 -8% 1,664 1,465 14% Nucleus 2,387 2,513 -5% 1,248 1,139 10% Plasma 742 883 -16% 416 326 28% FFB Yield (tonne/ha)
Slide 16: Downstream Highlights
Section 4 Downstream Highlights
Slide 17: Downstream – Indonesia Operations
Downstream – Indonesia Operations Our Brands Capacity: 420,000 tpa Capacity: 300,000 tpa Capacity under construction: Capacity: 420,000 tpa 240,000 tpa Refinery Plants • Our prominent cooking oil brands, Filma and Kunci Mas, are among the leaders in Indonesia Domestic • 1H 2010 domestic sales volume
Slide 18: Downstream – China Operations
Downstream – China Operations China is one of the largest and fastest growing edible oils consumers GAR will strategically expand its presence in China by constructing new facilities and acquiring established distribution network (FIH) Facilities Existing Expansion Total (‘000 tpa) Plan Ningbo: Refi
Slide 19: Growth Strategy
li ar IJ ZF Gal ne and food Section 5 Growth Strategy
Slide 20: Strategic Priorities
Strategic Priorities Build on core competitive strengths to maximise long-term shareholder returns Expand high-margin • Target additional planted area of 50,000 ha per annum upstream business • Split between green field vs acquisition to be assessed based on opportunities • Increase downstream produ
Slide 21: Recent Developments
Section 6 Recent Developments 20
Slide 22: Planned Acquisition of Florentina International
Planned Acquisition of Florentina International On 14 May 2010, we announced the acquisition plan of Florentina International Holdings (“FIH”) from an affiliated company, Asia Food & Properties Ltd (AFP). FIH is involved in noodle and ice stick business, comprising: - 8 plants in China with total ca
Slide 23: Independent Verification Exercise on Greenpeace Report - Background
Independent Verification Exercise on Greenpeace Report - Background In April 2010, SMART appointed the independent verification team after consulting with Unilever CUC and BSI assisted by Prof. Dr. Bambang Hero Saharjo and Dr. Ir. H. Yanto Santosa from Bogor Agricultural Institute Scope of work: to
Slide 24: Independent Verification Exercise on Greenpeace Report - Findings
Independent Verification Exercise on Greenpeace Report - Findings Summary of findings 1. Degradation process of primary forest areas that were habitats for Borneo orang-utan happened before SMART started the operations of the concessions. All 11 concessions are on degraded land. 2. Clearing peat lan
Slide 25: 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 : Rafael B. Concepcion, Jr. (rafaelc@goldenagri.com.sg) Su
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