Slide 1: Interim Performance Presentation
Interim Performance Presentation YTD Sep 2012 : nine-month period ended 30th September 2012 12 November 2012 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 12 Section 4 Downstream Highlights 17 Section 5 Strategy and Outlook 21 Section 6 Appendix 24 2
Slide 4: Executive Summary
agribusiness and food Age Section 1 Executive Summary
Slide 5: Executive Summary
Executive Summary Record palm oil production weighed down by lower CPO prices and higher soybean raw material cost Price (US$/MT) EBITDA (US$ million) Output (‘000 MT) • Lower 3Q 2012 vs 2Q 2012 results from decline in CPO prices and China Operations 800 2,200 2,000 Revenue $1,672 mn 25% 700 EBITDA
Slide 6: Financial Highlights
Section 2 Financial Highlights
Slide 7: Financial Performance – 3Q 2012
Financial Performance – 3Q 2012 US$ million 3Q 2012 3Q 2011 YoY 2Q 2012 QoQ Change Change Revenue 1,672 1,562 7% 1,342 25% Gross Profit 398 422 -6% 398 - EBITDA 190 200 -5% 200 -5% Interest on borrowings -21 -17 22% -18 16% Depreciation and amortisation -30 -24 21% -27 10% Foreign exchange loss, net
Slide 8: Financial Performance – YTD Sep 2012
Financial Performance – YTD Sep 2012 US$ million YTD Sep 2012 YTD Sep 2011 Change Revenue 4,533 4,625 -2% Gross Profit 1,250 1,450 -14% EBITDA 643 761 -15% Interest on borrowings -54 -47 14% Depreciation and amortisation -84 -69 22% Foreign exchange (loss)/gain, net -12 30 n.m. Exceptional items - 1
Slide 9: Segmental Results – 3Q 2012
Segmental Results – 3Q 2012 (in US$ million) Indonesia Operations China Operations 3Q 2012 2Q 2012 Change 3Q 2012 2Q 2012 Change Revenue 1,270 1,056 20% 403 289 41% Gross Profit 410 383 7% -12 15 n.m. Gross Profit Margin 32% 36% -4% -3% 5% -8% EBITDA 210 195 8% -20 5 n.m. EBITDA Margin 17% 19% -2% -
Slide 10: Segmental Results – YTD Sep 2012
Segmental Results – YTD Sep 2012 (in US$ million) Indonesia Operations China Operations YTD Sep 2012 YTD Sep 2011 Change YTD Sep 2012 YTD Sep 2011 Change Revenue 3,583 3,778 -5% 950 847 12% Gross Profit 1,227 1,397 -12% 23 53 -57% Gross Profit Margin 34% 37% -3% 2% 6% -4% EBITDA 648 735 -12% -5 26 n
Slide 11: Financial Position
Financial Position Strong balance sheet position with low gearing (in US$ million) 30-Sep-12 31-Dec-11 Change Total Assets 12,641 11,837 7% Cash and Short-Term Investments 499 370 35% Trade Receivables and Inventories 1,182 985 20% Fixed Assets1 9,759 9,565 2% Total Liabilities 4,047 3,725 9% Intere
Slide 12: Dividend
Dividend The Board approves to distribute interim dividend of 0.60 Singapore cents per share, 17% of our underlying profit for YTD Sep 2012 Interim 2008 2009 2010 2011 2012 Cash Dividend Dividend per share (in S$ cents) 0.7691 0.495 0.770 1.840 0.600 Total Dividend (in S$ million) 79.81 60.09 93.47
Slide 13: Plantation Highlights
Section 3 Plantation Highlights
Slide 14: Plantation Area
Plantation Area GAR is the largest Indonesian plantation company with integrated operations (in ha) 30 Sep 30 Sep 30 Sep 2011/2012 31 Dec 2012 2011 % increase 2011 Planted Area 459,502 448,924 2.4% 455,660 Nucleus 363,586 356,853 1.9% 361,060 Plasma 95,916 92,071 4.2% 94,600 Mature Area 418,137 391,
Slide 15: 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 Sep 2012 Sep 2011 4% 9% 2% 13% 21% 19,401 20% 10,496 41,365 20% 57,794 94,851 90,599 91,953 20% 90,494 199,541 211,932 45% 46% Notes: 1.
Slide 16: Production Performance
Production Performance Record production volume for the first nine months YTD YTD Sep 2012 Sep 2011 Change 3Q 2012 2Q 2012 Change FFB Production (‘000 tonnes) 6,869 6,212 11% 2,670 2,204 21% Nucleus 5,238 4,662 12% 2,048 1,666 23% Plasma 1,631 1,550 5% 622 538 16% FFB Yield (tonnes/ha) 16.4 15.9 3%
Slide 17: Holistic Approach to Sustainability
Holistic Approach to Sustainability Progress update on sustainability • In Sep 2012, we have 1 mill and 3 estates receiving Roundtable on Sustainable Palm Oil (RSPO) certification, bringing total RSPO-certified units of 8 mills and 67,514 ha of estates • To date, GAR has received International Susta
Slide 18: Downstream Highlights
Section 4 Downstream Highlights
Slide 19: Downstream – Indonesia Operations
Downstream – Indonesia Operations Consistent expansion of downstream capacity to focus on higher value- added products Capacity Sales volume (‘000 tpa) (‘000 MT) Our Brands 1400 100 1200 90 Kernel crushing 1000 80 capacity 800 70 Refinery capacity 600 60 Branded sales 400 50 volume 200 40 0 30 09 09
Slide 20: Downstream – China Operations
Downstream – China Operations 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 Enhance relationships with end
Slide 21: Revenue Details
Revenue Details YTD Sep 2012 revenue of US$4.5 billion mainly from CPO and refined palm oil based products By Product By Country Others PK Soybean 6% 1% Oil 4% Indonesia Soybean Meal Local China Local 11% 7% CPO 21% Branded 44% Products 8% Unbranded Refined Indonesia Palm Export Products 68% 30% 20
Slide 22: Strategy and Outlook
Section 5 Strategy and Outlook 21
Slide 23: Strategic Priorities
Strategic Priorities Build on core competitive strengths to maximize long-term shareholder returns Leverage operating scale and relentless focus on operational excellence Upstream Downstream Sustained Growth and Profitability • Increase downstream capability to shift • Sustain growth through expansi
Slide 24: Growth Strategy and Outlook
Growth Strategy and Outlook Growth Strategy in 2012 • Expanding palm oil plantations by 10,000 - 15,000 hectares through organic growth • Building milling capacity in line with the growth in fruits production • Constructing additional downstream processing capacity in strategic locations • Extending
Slide 25: Appendix
agribusiness and food Ave Section 6 Appendix
Slide 26: 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 Sep 2012 Nucleus 33,399 83,920 153,839 73,027
Slide 27: 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