Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — FY2012 Earnings Presentation
29 slides from Golden Agri-resources's earnings presentation, Feb 28, 2013
Slide 1: Full Year Performance Presentation
Full Year Performance Presentation FY 2012 : year ended 31st December 2012 28 February 2013 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 11 Section 4 Downstream Highlights 16 Section 5 Strategy and Outlook 22 Section 6 Appendix 25 2
Slide 4: Executive Summary
Fest agribusiness and food Section 1 Executive Summary
Slide 5: Executive Summary
Executive Summary Price (US$/MT) Record palm oil production weighed EBITDA (US$ million) Output (‘000 MT) down by lower CPO prices and 1000 3,000 challenging market environment in China 850 2,500 700 Revenue $6,052 mn 2% 2,000 550 EBITDA $785 mn 17% 1,500 Core Net Profit1 $404 mn 29% 400 Palm produc
Slide 6: Financial Highlights
Section 2 Financial Highlights
Slide 7: Financial Performance – FY 2012
Financial Performance – FY 2012 US$ million FY 2012 FY 2011 Change Revenue 6,052 5,953 2% Gross Profit 1,611 1,837 -12% EBITDA 785 942 -17% Core Net Profit1 404 571 -29% Addition: Net gain from changes in fair value of biological assets, net of tax and non-controlling interests 37 672 -95% Foreign e
Slide 8: Financial Performance – 4Q 2012
Financial Performance – 4Q 2012 US$ million 4Q 2012 4Q 2011 YoY 3Q 2012 QoQ Change Change Revenue 1,519 1,328 14% 1,672 -9% Gross Profit 361 386 -7% 398 -9% EBITDA 142 181 -22% 190 -25% Core Net Profit1 36 91 -60% 91 -60% Addition: • Net gain from changes in fair value of biological assets, net of t
Slide 9: Segmental Results – FY 2012
Segmental Results – FY 2012 (in US$ million) Indonesia Operations China Operations FY 2012 FY 2011 Change FY 2012 FY 2011 Change Revenue 4,762 4,813 -1% 1,290 1,140 13% Gross Profit 1,600 1,771 -10% 10 66 -84% Gross Profit Margin 34% 37% -3% 1% 6% -5% EBITDA 812 914 -11% -27 28 n.m. EBITDA Margin 17
Slide 10: Financial Position
Financial Position Strong balance sheet position with low gearing (in US$ million) 31-Dec-12 31-Dec-11 Change Total Assets 13,286 11,837 12% Cash and Short-Term Investments 685 370 85% Trade Receivables and Inventories 1,240 985 26% Fixed Assets1 9,907 9,565 4% Total Liabilities 4,668 3,725 25% Inte
Slide 11: Dividend
Dividend The Board proposes final dividend distribution of 0.59 Singapore cents per share to be approved by shareholders. Combined with interim dividend, it represents 30% of our underlying profit for FY2012. 2012 Cash Dividend 2009 2010 2011 Interim Final Total Dividend per share (in S$ cents) 0.49
Slide 12: Plantation Highlights
Section 3 Plantation Highlights
Slide 13: Plantation Area
Plantation Area GAR is the largest Indonesian plantation company with integrated operations hectares 31 Dec 2012 31 Dec 2011 Change Planted Area 463,426 455,660 1.7% Nucleus 366,914 361,060 1.6% Plasma 96,512 94,600 2.0% Mature Area 416,309 390,759 6.5% Nucleus 328,423 306,827 7.0% Plasma 87,886 83,
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 31 Dec 2012 31 Dec 2011 4% 10% 2% 14% 18,511 20% 20% 10,315 47,117 94,286 20% 64,901 90,390 20% 91,849 90,513 211,663 199,541 44% 46% No
Slide 15: Production Performance
Production Performance FY 2012 production volume achieved record level FY 2012 FY 2011 Change 4Q 2012 3Q 2012 Change FFB Production (‘000 tonnes) 9,686 8,509 14% 2,817 2,670 6% Nucleus 7,390 6,398 16% 2,152 2,048 5% Plasma 2,296 2,111 9% 665 622 7% FFB Yield (tonnes/ha) 23.3 21.8 7% 6.8 6.4 6% Palm
Slide 16: Holistic Approach to Sustainability
Holistic Approach to Sustainability Certification Updates • Roundtable on Sustainable Palm Oil (RSPO) • In November 2012, GAR received its first smallholder RSPO certification for 3,260 ha of plasma plantation in South Kalimantan • To date, 119,192 ha of plantations including smallholder plantations
Slide 17: Downstream Highlights
Section 4 Downstream Highlights
Slide 18: 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 EGYPTEast Asia Africa 5 6 4 1 0 9 1 CPO input 1 Trade flows 1 8 2 … to grow
Slide 19: 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 20: Downstream Risk Management
Downstream Risk Management Prudent downstream business with centralised and independent market risk management supporting clear governance Executive Risk Committee Governance and Oversight Daily Exposure & Risk Utilization Reports to Downstream Commercial Risk Policy Risk Management Commercial Activ
Slide 21: Expanding Downstream Capacity in Indonesia
Expanding Downstream Capacity in Indonesia Expanding Indonesia downstream production base for global exports • Refining capacity expansion supported by: • Growing palm products output from our plantations • Export tax scheme favouring refined products • Government target to allow only packaged cooki
Slide 22: Strengthening Downstream Business in China
Strenghtening Downstream Business in China China remains one of the largest and fastest growing edible oils consumers despite current challenging environment GAR will strategically strenghten its presence in China by: Developing distribution channels to enter new areas in China Tianjin Achieve compe
Slide 23: Strategy and Outlook
Section 5 Strategy and Outlook 22
Slide 24: 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 25: 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 26: Appendix
Fest agribusiness and food Section 6 Appendix
Slide 27: Revenue Details
Revenue Details FY 2012 revenue increased to US$6.1 billion on strong production and increase in refined palm based products By Product By Country Soybean Oil Others PK 4% 6% 1% Indonesia Soybean Local Meal 8% China Local 11% CPO 44% 21% Branded Products 8% Indonesia Unbranded Refined Palm Export Pr
Slide 28: 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) 31 Dec 2012 Nucleus 38,491 83,880 153,570 72,462
Slide 29: 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) 28