Wilmar International Limited · SGX:F34
Wilmar International — Investor Presentation (September 2013)
39 slides from Wilmar International's investor presentation, September 2013
Slide 1: Wilmar International Limited Investor Presentation
WILMAR INTERNATIONAL LIMITED Investor Presentation September, 2013
Slide 2: Important Notice
IMPORTANT NOTICE Information in this presentation 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 based on current assumptions which are subject to various risks and which may cha
Slide 3: Agenda
Agenda 1 Who We Are 2 2Q 2013 Financials 2
Slide 4: Who We Are
Who We Are 3
Slide 5: Wilmar's Global Reach
Wilmar's Global Reach Vertically integrated agribusiness with leading market shares and major presence in key producing and consuming markets World’s largest processor and merchandiser of palm & lauric oils Largest in edible oils refining and fractionation, oleochemicals, specialty fats & palm biodi
Slide 6: Strong Growth over the Years
Strong Growth over the Years • 2012: Asia’s Premier Acquired Oil Agribusiness • 2010: Palm • Constituent of the Ventured into Plantations in FTSE Straits Sugar Business Nigeria Times Index and through the • Expansion into the MSCI Index United States acquisition of through • Multinational work • 199
Slide 7: Strong Growth Metrics
Strong Growth Metrics Yearly Revenue Equity Values 16,000 15,195 50,000 14,248 44,710 45,463 45,000 14,000 12,606 40,000 12,000 11,412 35,000 9,975 30,378 10,000 29,145 US$ Million 30,000 US$ Million 8,182 25,000 23,885 8,000 20,000 6,000 16,466 15,000 4,000 10,000 7,016 2,000 5,000 982 0 0 FY2006FY
Slide 8: Vertically Integrated Across Business Segments
Vertically Integrated Across Business Segments … Plantations Consumer and Palm & Laurics Oilseeds & Grains Sugar Others Products Palm Oil Mills Largest global Largest soybean One of the largest processor and crusher in China with Largest raw sugar World’s largest listed palm merchandiser of leading
Slide 9: Balanced Operations in 5 Key Business Segments
Balanced Operations in 5 Key Business Segments FY2012 Tonnage FY2012 Revenue(1) FY2012 PBT(2) Plantations & Others Plantations Palm Oil Mills 3.2% & Palm Oil Others 3.3% Mills 5.4% 3.4% Others & Sugar Sugar Associates 11.3% 7.2% 13.8% Palm & Consumer Laurics Products Palm & Consumer 45.7% 8.0% Lauri
Slide 10: Recognition for Wilmar's Quality Products
Recognition for Wilmar’s Quality Products China: • Gold Award at the 12th China International Agricultural Products and Technology Arawana Exhibition • 2012 Annual Food Industry Social Contribution Award Indonesia: • 4-Star Quality Product Sania • Super Brand 2010 – 2012 Sovia • Peduli Gizi Award fo
Slide 11: Leadership Position Well Recognized in China
Leadership Position Well Recognized in China Leading Market Position in All Key Businesses Our Products / Business Market Position in China China’s Major Crushers by Soybean Imports (2011) Oilseeds crushing Wilmar Edible oils refining China 15% COFCO Consumer pack oil 12% Others Specialty fats 57% J
Slide 12: Leading Market Position in Each Product and Location
Leading Market Position in Each Product and Location Main Countries of Market leader in Key Operating Markets Operation • No. 1 global processor and merchandiser of palm and lauric oils Plantations, • No. 1 palm biodiesel, oleochemicals and specialty fats manufacturer in the world Palm & • One of th
Slide 13: Unique Vertically Integrated and Resilient Business Model
Unique Vertically Integrated and Resilient Business Model Integrated business model with significant asset ownership throughout the value chain Origination / Merchandising & Processing Products Consumer Sourcing Distribution 253,374 ha of planted 59 crushing plants for 97 edible oil refineries
Slide 14: Effective and Centralized Risk Management Framework
Effective and Centralized Risk Management Framework Integrated and robust risk models Regular reporting and independent Company maintains control process Continual board sophisticated models to oversight control risk Centralized risk exposure management activities in Risk tolerance level set a
Slide 15: Effective and Centralized Risk Management Framework (Cont'd)
Effective and Centralized Risk Management Framework (Cont’d) Board-level Risk Management Committee (RMC) Independent Middle Chaired by Lead Independent Director and oversees ERC Office Reviews overall risk management guidelines / framework, policies and systems Assesses Group-wide Reviews an
Slide 16: Experienced and Highly Stable Management with Proven Track Record
Experienced and Highly Stable Management with Proven Track Record Visionary management that successfully established Wilmar’s global leadership and built the Company’s highly efficient integrated platforms Proven execution capability leading to highly synergistic partnerships with global players and
Slide 17: Coupled with Long-term Shareholder Commitment
…Coupled with Long-term Shareholder Commitment Others 29.1% Martua Sitorus 16.4% 10.2% Kuok Khoon Hong 11.9% 32.4% Strong long-term, supportive shareholders Kuok Group – One of Asia's most diversified and dynamic multinational conglomerates ADM – One of the world’s largest agricultural processors of
Slide 18: Fully committed to Corporate Social Responsibility
Fully committed to Corporate Social Responsibility The Group is guided by its internal environmental policies which comprise: Adhering to RSPO Principles and Criteria Compliance to all national regulations when clearing forest land for plantations No-burn policy Adopting internationally recognized b
Slide 19: 2Q 2013 Financials
2Q 2013 Financials 18
Slide 20: Overview of Results
Overview of Results 2Q13 (US$m) vs 2Q12 Revenue 10,426 -5% EBITDA 427 30% Net profit 219 87% Earnings per share 3.4 89% in US cents (fully diluted) Net profit 245 42% - excl non-operating items 1H13 (US$m) vs 1H12 Revenue 20,627 -4% EBITDA 1,006 12% Net profit 534 43% Earnings per share 8.3 43%
Slide 21: Revenues
Revenues 2Q13 Key Highlights 22,000 21,491 26 20,627 Revenue down 5% on lower palm prices alleviated by 20,000 24 volume growth in key 24.3 segments Palm & Laurics/Oilseeds & Grains/Sugar 22 18,000 21.7 Palm & Laurics volume up 10% on increased capacity Volume in Million MT: 20 Lower oilseeds volume
Slide 22: Net Profit
Net Profit 2Q13 Key Highlights 600 Net profit up 87% to 534 559 US$219m; Core earnings from operations up 42% 500 Palm & Laurics margins bolstered by high value- 400 373 378 added downstream products US$ Million Oilseeds & Grains margins 300 remained positive 245 219 Consumer Products margins 200 17
Slide 23: Business Segment Results: Profit before Tax
Business Segment Results: Profit before Tax US$ million 2Q13 2Q12 ∆ 1H13 1H12 ∆ Palm & Laurics 224.5 160.1 40% 443.3 395.0 12% Oilseeds & Grains 15.3 (40.0) n.m. 62.4 (92.5) n.m. Consumer Products 29.9 18.0 67% 86.4 68.2 27% Plantations & Palm Oil Mills 52.7 79.2 -34% 124.8 178.0 -30% Sugar (30.3) (
Slide 24: Business Segment results: Palm and Laurics
Business Segment results: Palm and Laurics 2Q13 2Q12 ∆ 1H13 1H12 ∆ Revenue (US$ million) 5,093 6,008 -15% 9,636 11,439 -16% Sales volume (‘000 MT) 6,194 5,623 10% 11,725 10,792 9% Profit before tax 224.5 160.1 40% 443.3 395.0 12% (US$ million) Profit before tax per MT 36.2 28.5 27% 37.8 36.6 3% (US$
Slide 25: Business Segment results: Oilseeds and Grains
Business Segment results: Oilseeds and Grains 2Q13 2Q12 ∆ 1H13 1H12 ∆ Revenue (US$ million) 2,999 3,086 -3% 6,089 5,776 5% Sales volume (‘000 MT) 4,498 4,588 -2% 9,164 8,996 2% Profit before tax 15.3 (40.0) n.m. 62.4 (92.5) n.m. (US$ million) Profit before tax per MT 3.4 (8.7) n.m. 6.8 (10.3) n.m. (
Slide 26: Business Segment results: Consumer Products
Business Segment results: Consumer Products 2Q13 2Q12 ∆ 1H13 1H12 ∆ Revenue (US$ million) 1,508 1,380 9% 3,545 3,271 8% Sales volume (‘000 MT) 1,094 897 22% 2,419 2,103 15% Profit before tax 29.9 18.0 67% 86.4 68.2 27% (US$ million) Profit before tax per MT 27.3 20.0 37% 35.7 32.4 10% (US$/MT) • Str
Slide 27: Business Segment results: Plantations & Palm Oil Mills
Business Segment results: Plantations & Palm Oil Mills 2Q13 2Q12 ∆ 1H13 1H12 ∆ Revenue (US$ million) 315.0 416.1 -24% 663.9 849.8 -22% Profit before tax (US$ 52.7 79.2 -34% 124.8 178.0 -30% million) Planted area (ha) 253,374 248,245 2% 253,374 248,245 2% Mature area harvested (ha) 225,165 212,056 6%
Slide 28: Plantation Age Profile
Plantation Age Profile 30 Jun 2013 0 to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Indonesia 6,630 40,763 87,207 18,657 30,261 183,518 Malaysia 4,025 583 16,582 11,890 24,682 57,762 Africa 1,851 395 6,971 253 2,624 12,094 Total planted area 12,506 41,741 110,760 30,800 57,567 253,374 % of to
Slide 29: Business segment results: Sugar Milling
Business segment results: Sugar Milling 2Q13 2Q12 ∆ 1H13 1H12 ∆ Revenue (US$ million) 177 112 57% 232 163 42% Sales volume (‘000 MT) 436 257 70% 533 342 56% Profit before tax (52.1) (79.1) 34% (107.8) (137.1) 21% (US$ million) Excluding non-operating items: Profit before tax from operations (44.0) (
Slide 30: Business segment results: Sugar Merchandising and Processing
Business segment results: Sugar Merchandising and Processing 2Q13 2Q12 ∆ 1H13 1H12 ∆ Revenue (US$ million) 887 728 22% 1,601 1,135 41% Sales volume (‘000 MT) 1,691 1,039 63% 2,901 1,534 89% Profit before tax 21.8 18.9 16% 63.9 29.0 >100% (US$ million) Excluding non-operating items: Profit before tax
Slide 31: Non-Operating Items
Non-Operating Items In US$ million 2Q13 2Q12 1H13 1H12 Foreign exchange gain/(loss) arising from intercompany 3.8 (19.7) 4.1 (13.7) loans to subsidiaries (20.7) (26.5) (16.9) 19.2 Net gain/(loss) from investment securities Changes in the fair value of derivatives embedded in - - - (0.3) convertible
Slide 32: Cashflow
Cashflow US$ million 1H13 1H12 FY12 Operating cashflow before working capital changes 1,019 731 2,201 Net cashflow from operating activities 917 (326) 1,068 Less : Investment in subsidiaries and associates (296) (216) (300) Capital expenditure (733) (887) (1,735) Net proceeds from bank borrowings 18
Slide 33: Gearing
Gearing US$ million As at As at As at Jun 30, 2013 Dec 31, 2012 Jun 30, 2012 Debt/Equity (x) 0.86 0.85 0.93 - Net Debt * 12,519 12,209 12,492 - Shareholders' funds 14,523 14,346 13,387 Adjusted Debt/Equity (x) 0.40 0.36 0.38 - Liquid working capital ** 6,699 7,011 7,357 - Adjusted Net Debt 5,821 5,1
Slide 34: Funding and Liquidity
Funding and Liquidity As at June 30, 2013 US$ million Available Utilised Balance Credit facilities : Committed 8,963 8,421 542 Trade finance 29,600 16,066 13,534 Short term 780 423 357 Total credit facilities 39,343 24,910 14,433 Cash & cash equivalents 1,218 Total liquidity 15,651 • 64% of utilised
Slide 35: Key Indicators
Key Indicators 6 months ended Year ended June 30, 2013 December 31, 2012 Return on Average Equity 9.8%* 9.1% Return on Average Capital Employed 5.6%* 5.4% Return on Average Assets 3.4%* 3.2% Return on Invested Capital 5.8%* 6.0% in US cents EPS (fully diluted) 8.3 19.6 NTA per share 157.9 154.6 NAV
Slide 36: Business Outlook
Business Outlook • Low CPO price and declining refining margins in Indonesia add to the challenging operating environment • However, the Group will benefit from lower raw material prices for its downstream products • Recent investments in the sugar business as well as expansion into oleochemicals an
Slide 37: Appendix
Appendix 36
Slide 38: Biological Gain
Biological Gain Biological Gain PBT (Pre tax) % of PBT US$ ’million US$ ’million 2006 17.4 135.4 12.8% 2007 123.5 829.8 14.9% 2008 - 1,789.3 - 2009 17.0 2,294.4 0.7% 2010 251.0 1,644.2 15.3% 2011 262.7 2,078.7 12.6% 2012 28.8 1,654.6 1.7% Total 700.4 10,426.4 6.7% 37
Slide 39: Biological Assets
Biological Assets • Carrying value of biological assets: US$1.97 billion (including fair value gains in biological assets) • Total land hectarage: 255,648 ha • 61.4% of our matured plantation is between 4 to 14 years. • Average value per hectare: approximately US$7,700/ha • Key Assumption used in di
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