Wilmar International Limited · SGX:F34
Wilmar International — Shareholder Meeting (April 2014)
25 slides from Wilmar International's shareholder meeting presentation, Apr 25, 2014
Slide 1: Wilmar International Limited Annual General Meeting
WILMAR INTERNATIONAL LIMITED ANNUAL GENERAL MEETING 25 April 2014 BY HO KIAM KONG CHIEF FINANCIAL OFFICER
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 Business Update: What has changed since last AGM? 2 Financial Performance in 2013 3 Our Financial Profile 4 Sustainability – the Foundation of Today’s Business Growth 5 Prospects 2
Slide 4: Business Update: What has changed since last AGM?
1. Business Update: What has changed since last AGM? 3
Slide 5: Continue to invest in the Business Segments
Continue to invest in the Business Segments Refinery • Joint venture with Elevance Renewable Sciences, Inc. commenced commercial shipment of specialty chemicals from biorefinery in Indonesia • First plant in the USA began processing palm, coconut and palm kernel oils for the California and West Coas
Slide 6: Continue to invest in the Business Segments
Continue to invest in the Business Segments Equity • Acquired 35% equity interest in Estate Management Services (Private) Plantations Acquisition Limited who owns and manages over 30,000 ha of plantations in Sri Lanka and Palm Oil Capacity • Added two new mills in Indonesia and one in Nigeria Mills
Slide 7: Our Brands continue to do well in the Markets we served
Our Brands continue to do well in the Markets we served China: • Nutrition Innovation Award for Blended Ocean Fish Oil Arawana • Active Contribution to Healthy Cardiovascular Management Award for Corn Oil Phytosterols Indonesia: • Superbrand Sania • Indonesia Best Companies in Satisfying Retailers V
Slide 8: Corporate awards in 2013/2014
Corporate awards in 2013/2014 World’s Most Admired Company 2014 (ranked 2nd in Food Fortune Magazine Production Industry) Fortune Global 500 in 2013 (ranked 224th) Global 500 Brands (ranked 459th globally, 3rd in Singapore) BrandFinance® Forbes Global 2000 (ranked 313rd) Forbes Magazine Best Company
Slide 9: Financial Performance in 2013
2. Financial Performance in 2013 8
Slide 10: 2013 Results at a Glance
2013 Results at a Glance Net Profit US$ 1.32 billion 5.1% Total Revenue US$ 44.09 billion 3.0% EBITDA US$ 2.41 billion 1.1% Earnings per share 20.6 US cents 5.1% Total Assets US$ 46.63 billion 11.2% Shareholders’ Funds US$ 15.00 billion 4.6% Dividends S$ 0.08 per share 60.0% 9
Slide 11: Balanced Operations in 5 Key Business Segments
Balanced Operations in 5 Key Business Segments FY2013 Tonnage FY2013 Revenue(1) FY2013 PBT(2) Plantations & Others Plantations Others & Palm Oil Mills 3% & Palm Oil Others Associates 2% Mills 5% 5% 3% Sugar Sugar Plantations 14% 8% & Palm Oil Mills Palm & Palm & Palm & 15% Laurics Laurics Consumer L
Slide 12: Key Segment Results
Key Segment Results US$ Millions unless 2013 2012 2011 otherwise stated Volume (M MT) 1.8 1.9 1.8 Plantations and Revenue 1,432 1,728 1,843 Palm Oil Mills PBT (excluding Revaluation 278.3 382.0 471.1 of Biological Assets) Volume (M MT) 24.5 23.1 20.3 Palm and Laurics Revenue 19,926 22,748 22,917 PBT
Slide 13: Our Financial Profile
3. Our Financial Profile ilma We Invest « You Harvest 12
Slide 14: Robust Financial and Liquidity Profile
Robust Financial and Liquidity Profile Leading size and scale of operation supported by well-managed leverage ratios Total Revenue (US$ m) Total Assets (US$ m) 44,710 45,463 44,085 46,632 41,920 39,640 33,969 30,378 23,885 23,449 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 EBITDA / Net Interes
Slide 15: Strong Liquidity Profile and Access to Liquidity
Strong Liquidity Profile and Access to Liquidity US$ m Total Utilised and Unutilised 11,339 17,356 24,618 31,044 35,770 41,785 Credit Facilities: % Utilized: 72% 47% 55% 71% 67% 62% 26,196 404 22,245 20,888 304 524 17,425 773 16,456 13,202 Utilised Credit 15,322 Facilities: 9,580 13,340 453 5,284 29
Slide 16: Sustainability – the Foundation of Today’s Business Growth
4. Sustainability – the Foundation of Today’s Business Growth by Jeremy Goon, Head of CSR 15
Slide 17: Issues Associated with Palm Oil
Issues Associated with Palm Oil Deforestation and illegal logging Loss of high conservation value (HCV) areas and high carbon stock (HCS) forests Burning for land-clearing Peat-land development that exacerbates climate change Human Rights Abuse displacement of local indigenous groups, child labour e
Slide 18: Integrated Policy that Addresses Challenges
Integrated Policy that Addresses Challenges: “No Deforestation, No Peat & No Exploitation” Policy – 5 Dec 2013 NO DEFORESTATION • No development of High Carbon Stock (HCS) forests • No development of High Conservation Value (HCV) Areas • No burning (Zero Burn Policy) NO PEAT • No development on peat
Slide 19: Commitment to a traceable supply chain
Commitment Core to the integrated policy is a commitment to map out a traceable supply chain Traceability to source - e.g. from refinery to mills and their supply bases (plantations) Scope Own operations + all 3rd-party suppliers from whom we purchase or with whom we have a trading relationship Time
Slide 20: Wilmar’s Approach to Sustainability
Wilmar’s Approach to Sustainability Global Reporting Standards & Certification International Standards Partnerships Policies • Roundtable on Sustainable • The Forest Trust (TFT) • Do not develop on peat land Palm Oil (RSPO) • Borneo Orangutan Survival • Respect & preserve High • International Sustai
Slide 21: RSPO Certification
RSPO Certification > 70% of plantations certified; Equivalent to about 700,000 tonnes of Certified Sustainable Palm Oil per year Aims to complete certification audit for all of Wilmar’s operations by 2016; > 1 million tonnes
Slide 22: Transparency & Accountability - Reporting
Transparency & Accountability - REPORTING • Sustainability Report (SR) – details our environmental and social targets, achievements and challenges – SR 2013 to be released in July 2014 • Regular Updates on Integrated Policy Implementation – to provide quarterly update that will highlight on progress
Slide 23: Open Support from Investors
Open Support from Investors Source: http://greencentury.com/wilmar-statement-with-signatories/ 22
Slide 24: Prospects
5. Prospects ilma We Invest « You Harvest 23
Slide 25: Prospects
Prospects The Group has emerged from 2013 a stronger, better company, characterised by stable and diversified earnings, increased contribution from higher margin products, maturing new businesses like oleochemicals, flour, rice and sugar, and better growth in key emerging markets, especially in Afri
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