Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — H1 2017 Earnings Presentation
21 slides from Golden Agri-resources's earnings presentation, Aug 14, 2017
Slide 1: Golden Agri-Resources Ltd Interim Performance Presentation
Golden Agri-Resources Ltd Interim Performance Presentation Second quarter and half year ended 30th June 2017 14 August 2017
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 15 5 Appendix 19 slide 3
Slide 4: Executive Summary
agribusiness and food gar Executive Summary
Slide 5: Executive Summary
Executive Summary 1H 2017 delivers strong performance across all segments supported by recovery in plantation output and higher prices EBITDA1 (US$ million) • Ytd Jun 2017 vs YTD Jun 2016 265 244 Revenue US$3,803 mn 18% EBITDA US$328 mn 44% 210 Underlying Profit1 US$137 mn 220% Palm product output 1
Slide 6: Financial Highlights
Financial Highlights slide 6
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance US$ million 1H 2017 1H 2016 YoY 2Q 2017 2Q 2016 YoY Revenue 3,803 3,235 18% 1,757 1,742 1% Gross Profit 547 426 28% 256 163 57% EBITDA 328 228 44% 145 86 69% Underlying Profit/(Loss)1 137 43 220% 53 -6 n.m Net gain from changes in fair Value of biological assets2 0
Slide 8: Financial Position
Financial Position Prudent balance sheet with improving gearing ratios US$ million 30-Jun-17 31-Dec-16 Change Total Assets 8,195 8,306 -1% Cash and short-term investments 412 355 16% Fixed Assets1 3,806 3,891 -2% Total Liabilities 4,062 4,210 -4% Adjusted Net Debt2 1,571 1,745 -10% Net Debt3 2,553 2
Slide 9: Segmental Performance
Segmental Performance slide 9
Slide 10: Segmental Results: Plantations and Palm Oil Mills
Segmental Results Plantations and Palm Oil Mills Expanding 1H 2017 and 2Q 2017 EBITDA margins as palm production recovers and CPO price increases 1H 2017 1H 2016 YoY 2Q 2017 2Q 2016 YoY Revenue (US$ million) 843 599 41% 368 296 25% EBITDA (US$ million) 244 149 64% 103 73 42% EBITDA margin 29% 25% 4%
Slide 11: Plantation Area
Plantation Area GAR’s oil palm plantations continue to be leading in scale and operational excellence Mature Area - ha Planted Area - ha Age Profile as of 30 Jun 2017 10% 3% 7% 473,698 466,440 486,299 488,252 47,529 12,601 101,217 98,626 102,428 102,255 36,018 37% 372,481 367,814 383,871 385,997 180
Slide 12: Segmental Results: Palm and Lauric
Segmental Results Palm and Lauric 2Q 2017 margin expanded both year-on-year and quarter-on-quarter 1H 2017 1H 2016 YoY 2Q 2017 2Q 2016 YoY Revenue (US$ million) 3,386 2,799 21% 1,532 1,537 -0.3% Sales Volume (‘000 tonnes) 4,485 4,272 5% 2,031 2,179 -7% EBITDA (US$ million) 79 75 5% 40 13 215% EBITDA
Slide 13: 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 Weco • Increasing presence increasing traceability: biodiesel plant near is the large
Slide 14: Segmental Results: Oilseeds and Others
Segmental Results Oilseeds and Others Maintaining better performance of China oilseed business during 2017 supported by prudent management 1H 2017 1H 2016 YoY 2Q 2017 2Q 2016 YoY Oilseeds Revenue (US$ million) 354 347 2% 167 172 -3% Sales Volume (‘000 tonnes) 656 697 -6% 332 331 0.3% EBITDA (US$ mil
Slide 15: Strategy and Outlook
Strategy and Outlook slide 15
Slide 16: Strategic Priorities
Strategic Priorities Build on core competitive strengths and leverage scale to maximize long-term shareholder returns To strengthen our position as the world’s leading palm oil plantation company Operational Yield Cost Efficiency Be the best, Excellence – Improvement – best-in-class research and – m
Slide 17: 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 18: Towards Responsible Palm Oil Production
Towards Responsible Palm Oil Production GAR launches new non-GMO super high-yielding planting materials • Eka 1 and Eka 2 can potentially yield more than 10 tonnes of CPO per ha per year, the highest in the industry • Developed by SMART Research Institute (SMARTRI) and SMART Biotechnology Centre • G
Slide 19: Appendix
Appendix slide 19
Slide 20: 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) 30 June 2017 Nucleus 11,390 31,110 177,770 128,632 34,969 383,871 Plasma 1,21
Slide 21: 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 21
Golden Agri-Resources — H1 2017 Earnings Presentation on 6ix