Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — 1H 2013 Earnings Presentation
28 slides from Golden Agri-resources's earnings presentation, Aug 2, 2013
Slide 1: Financial Statement and Related Announcement
FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT Page 1 of 1 Print this page Half Year Results * Financial Statement And Related Announcement * Asterisks denote mandatory information Name of Announcer * GOLDEN AGRI-RESOURCES LTD Company Registration No. UF 24045G Announcement submitted on behalf of GOLD
Slide 2: Interim Performance Presentation
Interim Performance Presentation 1H 2013 : first half period ended 30th June 2013 2 August 2013 0
Slide 3: 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 4: 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 18 Section 6 Appendix 23 2
Slide 5: Executive Summary
Agar ZF agribusiness and food Section 1 Executive Summary
Slide 6: Executive Summary
Executive Summary Revenue growing but first half performance impacted by weaker CPO prices Price (US$/MT) EBITDA (US$ million) Output (‘000 MT) • 1H 2013 vs 1H 2012 results Revenue $3,112 mn 8.8% EBITDA $351 mn 22.5% Net Profit1 $158 mn 41.5% Palm product output 1.26 mn MT 0.2% CPO FOB price $795/MT
Slide 7: Financial Highlights
Section 2 Financial Highlights
Slide 8: Financial Performance – 1H 2013
Financial Performance – 1H 2013 US$ million 1H 2013 1H 2012 Change Revenue 3,112 2,861 9% Gross Profit 661 852 -22% EBITDA 351 453 -23% Interest on borrowings -47 -33 40% Depreciation and amortisation -64 -54 19% Foreign exchange loss, net -9 -7 21% Net Profit attributable to owners of the Company 1
Slide 9: Financial Performance – 2Q 2013
Financial Performance – 2Q 2013 US$ million 2Q 2013 2Q 2012 YoY 1Q 2013 QoQ Change Change Revenue 1,682 1,342 25% 1,430 18% Gross Profit 304 398 -24% 357 -15% EBITDA 140 200 -30% 211 -34% Interest on borrowings -24 -18 32% -23 1% Depreciation and amortisation -33 -27 23% -31 5% Foreign exchange (los
Slide 10: Segmental Results
Segmental Results US$ million Indonesia Operations China Operations 1H 2013 1H 2012 Change 1H 2013 1H 2012 Change Revenue 2,503 2,313 8% 609 547 11% Gross Profit 620 818 -24% 41 34 18% Gross Profit Margin 25% 35% -10% 7% 6% 1% EBITDA 331 438 -24% 20 15 31% EBITDA Margin 13% 19% -6% 3% 3% - Net Profi
Slide 11: Financial Position
Financial Position Strong balance sheet position with low gearing (in US$ million) 30-Jun-13 31-Dec-12 Change Total Assets 13,570 13,286 2% Cash and Short-Term Investments 625 685 -9% Trade Receivables and Inventories 1,102 1,240 -11% Fixed Assets1 10,086 9,907 2% Total Liabilities 4,853 4,668 4% In
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 2013/2012 31 Dec 2013 2012 % increase 2012 Planted Area 464,580 457,039 1.6% 463,426 Nucleus 367,252 361,493 1.6% 366,914 Plasma 97,328 95,546 1.9% 96,512 Mature Area 432,286 419,
Slide 14: 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 2013 1H 2012 5% 7% 5% 8% 21% 20,226 23% 17% 37,908 20% 94,956 92,011 211,938 46% 48% Notes: 1. Total planted area, including plasma 2
Slide 15: Production Performance
Production Performance First half production moderated by palm tree’s biological cycle 1H 2013 1H 2012 Change 2Q 2013 1Q 2013 Change FFB Production (‘000 tonnes) 4,116 4,199 -2% 1,967 2,149 -8% Nucleus 3,222 3,190 1% 1,536 1,686 -9% Plasma 894 1,009 -11% 431 463 -7% FFB Yield (tonne/ha) 9.5 10.0 -5%
Slide 16: Holistic Approach to Sustainability
Holistic Approach to Sustainability Certification Updates • RSPO: To date, 121,122 ha of plantations including smallholder plantations of 21,418 ha and 11 mills have received Roundtable on Sustainable Palm Oil (RSPO) certification, bringing GAR closer to our overall target of obtaining RSPO certific
Slide 17: Downstream Highlights
Section 4 Downstream Highlights
Slide 18: Expanding Downstream Capacity in Indonesia
Expanding Downstream Capacity in Indonesia Expanding Indonesia downstream production base for global exports • 2Q 2013 local branded sales volume increased by 14% compared to previous quarter • Refining capacity expansion supported by: • Growing palm products output from our plantations • Export tax
Slide 19: Strengthening Downstream Business in China
Strengthening Downstream Business in China Strengthening of the management team showing positive impact in China as one of the largest and fastest growing edible oils consumers GAR strategically strengthen its presence in China by: • Developing distribution channels to enter new areas in China • Ach
Slide 20: Strategy and Outlook
Section 5 Strategy and Outlook 18
Slide 21: Strategic Priorities
Strategic Priorities Build on core competitive strengths and leverage scale to maximize long-term shareholder returns Objective: Sustained Growth and Profitability Upstream Downstream • Optimise value throughout the chain supported • To become the world largest oil palm by prudent risk management pl
Slide 22: Downstream Value Chain Optimisation
Downstream Value Chain Optimisation Capitalise on our unique advantage of having own large CPO production and close access to third party plantations … CANADA UK US EU NETHERLAND East GERMANY Asia TURKEY South MiddlePAKISTAN Asia EGYPTEast Africa 5 6 4 1 0 9 1 CPO input 1 Trade flows 1 8 2 … to grow
Slide 23: Downstream Value Chain Optimisation
Downstream Value Chain Optimisation Commercially manage our plantation output and downstream assets to capitalise on value chain optimisation opportunities Sourcing of Product Sales and raw materials Processing customisation distribution • Strategic locations Efficient logistics Margin optimisation
Slide 24: Growth Strategy and Outlook
Growth Strategy and Outlook Growth Strategy • Expanding palm oil plantations by 35,000-45,000 hectares in 2013 through organic growth and acquisition • Building milling capacity in line with the growth in fruits production • Constructing additional downstream processing capacity in strategic locatio
Slide 25: Appendix
Agar ZF agribusiness and food Section 6 Appendix
Slide 26: Revenue Details
Revenue Details 1H 2013 revenue of US$3.1 billion mainly from CPO and refined palm oil based products By Product By Country Others 11% Soybean Oil 4% Indonesia Local Soybean Meal CPO 10% 7% 39% China Local 20% Branded Products 7% Indonesia Unbranded Export Refined Palm 70% Products 32% 24
Slide 27: 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 June 2013 Nucleus 26,304 70,065 173,511 77,04
Slide 28: 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) 26
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