Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — H1 2012 Earnings Presentation
25 slides from Golden Agri-resources's earnings presentation, Aug 10, 2012
Slide 1: Interim Performance Presentation 1H 2012
Interim Performance Presentation 1H 2012 : first half period ended 30th June 2012 10 August 2012 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 10 Section 4 Downstream Highlights 15 Section 5 Strategy and Outlook 19 Section 6 Appendix 22 2
Slide 4: Executive Summary
Fest agribusiness and food Section 1 Executive Summary
Slide 5: Executive Summary
Executive Summary First half performance impacted by lower CPO prices Price (US$/MT) • Weaker 1H 2012 vs 1H 2011 results EBITDA (US$ million) Output (‘000 MT) Revenue $2,861 mn 7% 575 1,400 EBITDA $453 mn 19% 525 Net Profit1 $270 mn 34% 475 1,200 Palm products output 1.26 mn MT 1% 425 CPO FOB price
Slide 6: Financial Highlights
Section 2 Financial Highlights
Slide 7: Financial Performance – 1H 2012
Financial Performance – 1H 2012 US$ million 1H 2012 1H 2011 Change Revenue 2,861 3,064 -7% Gross Profit 852 1,029 -17% EBITDA 453 561 -19% Interest on borrowings -33 -30 10% Depreciation and amortisation -54 -44 22% Foreign exchange (loss)/gain, net -7 38 n.m. Exceptional item - 10 -100% Net Profit
Slide 8: Financial Performance – 2Q 2012
Financial Performance – 2Q 2012 US$ million 2Q 2012 2Q 2011 YoY 1Q 2012 QoQ Change Change Revenue 1,342 1,601 -16% 1,519 -12% Gross Profit 398 503 -21% 454 -12% EBITDA 200 254 -21% 252 -21% Interest on borrowings -18 -16 10% -15 16% Depreciation and amortisation -27 -23 18% -27 - Foreign exchange (l
Slide 9: Segmental Results
Segmental Results Strong contribution from our Indonesia operations (in US$ million) Indonesia Operations China Operations 1H 2012 1H 2011 Change 1H 2012 1H 2011 Change Revenue 2,313 2,519 -8% 547 544 1% Gross Profit 818 994 -18% 34 35 -2% Gross Profit Margin 35% 39% -4% 6% 6% - EBITDA 438 543 -19%
Slide 10: Financial Position
Financial Position Strong balance sheet position with low gearing (in US$ million) 30-Jun-12 31-Dec-11 Change Total Assets 12,353 11,837 4% Cash and Short-Term Investments 334 370 -10% Trade Receivables and Inventories 1,178 985 20% Fixed Assets1 9,687 9,565 1% Total Liabilities 4,147 3,725 11% Inte
Slide 11: Plantation Highlights
Section 3 Plantation Highlights
Slide 12: Plantation Area
Plantation Area GAR is the largest Indonesian plantation company with integrated operations (in ha) 30 Jun 30 Jun 30 Jun 2011/2012 31 Dec 2012 2011 % increase 2011 Planted Area 457,039 446,160 2.4% 455,660 Nucleus 361,493 354,831 1.9% 361,060 Plasma 95,546 91,329 4.6% 94,600 Mature Area 419,131 391,
Slide 13: Total Planted Area by Age Profile
Total Planted Area by Age Profile GAR’s long-term growth is supported by favourable age profile of planted area underpinned by large immature and young plantations 1H 2012 1H 2011 5% 8% 3% 12% 20,226 20% 21% 10,505 37,908 20% 54,800 94,956 90,758 92,011 20% 90,353 199,744 211,938 45% 46% Notes: As o
Slide 14: Production Performance
Production Performance Production volume improved year-on-year and quarter-on-quarter 1H 2012 1H 2011 Change 2Q 2012 1Q 2012 Change FFB Production (‘000 tonne) 4,199 4,022 4% 2,205 1,994 11% Nucleus 3,190 3,033 5% 1,666 1,524 9% Plasma 1,009 989 2% 539 470 15% FFB Yield (tonne/ha) 10.0 10.3 -3% 5.3
Slide 15: Holistic Approach to Sustainability
Holistic Approach to Sustainability High Carbon Stock Forest Study Report In June 2012, GAR together with its subsidiary PT SMART Tbk (SMART), published the High Carbon Stock (HCS) Forest Study Report and will continue their multi-stakeholder engagement process to find solutions for successful HCS f
Slide 16: Downstream Highlights
Section 4 Downstream Highlights
Slide 17: Downstream – Indonesia Operations
Downstream – Indonesia Operations Consistent expansion of downstream capacity to focus our sales efforts toward higher value-added products Capacity Sales volume (‘000 tpa) (‘000 MT) Our Brands 1600 90 80 1400 70 1200 60 Kernel crushing capacity 1000 50 Refinery capacity 800 40 Branded 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 through organic growth and acquisition: Completed new vegetable oil refinery and soybean crushing facilities Developing distribution channels to ent
Slide 19: Revenue by Product
Revenue by Product 1H 2012 revenue of US$2.9 billion mainly from CPO and refined palm oil based products 1H 2012 1H 2011 Soybean Others PK Others PK Oil 6% 1% Soybean Oil 5% 1% 3% 4% Soybean Soybean Meal Meal 5% 5% Branded Branded CPO Products Products CPO 44% 8% 9% 48% Unbranded Unbranded Refined R
Slide 20: Strategy and Outlook
Section 5 Strategy and Outlook 19
Slide 21: Strategic Priorities
Strategic Priorities Build on core competitive strengths to maximize long-term shareholder returns Leverage operating scale and relentless focus on operational excellence Upstream Downstream Sustained Growth and Profitability • Sustain growth through expansion of planted • Increase downstream capabi
Slide 22: Growth Strategy and Outlook
Growth Strategy and Outlook Growth Strategy in 2012 • Expanding palm oil plantations by 20,000 - 30,000 hectares • Building milling capacity in line with the growth in fruits production • Constructing additional downstream processing capacity in strategic locations • Extending distribution coverage
Slide 23: Appendix
Fest agribusiness and food Section 6 Appendix
Slide 24: 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) 30 Jun 2012 Nucleus 30,311 83,978 153,846 73,132
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 : Richard Fung (richard@goldenagri.com.sg) 24
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