Wilmar International Limited · SGX:F34
Wilmar International — Shareholder Meeting (April 2017)
30 slides from Wilmar International's shareholder meeting presentation, Apr 26, 2017
Slide 1: Wilmar International Limited Annual General Meeting
WILMAR INTERNATIONAL LIMITED ANNUAL GENERAL MEETING 26 April 2017
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 2 2016 Financials 3 Prospects 4 Sustainability Update 5 AGM 2
Slide 4: 1. Business Update
1. Business Update By Ho Kiam Kong Chief Financial Officer
Slide 5: Vertically Integrated Across Business Segments
Vertically Integrated Across Business Segments Tropical Oils Oilseeds and Grains Sugar Others Milling, Merchandising, Manufacturing & Consumer Plantation Manufacturing Refining and Others Merchandising Products Consumer Products One of the largest Largest global Leading soybean World’s largest Large
Slide 6: Continue to Invest in Our Businesses - Tropical Oils
Continue to Invest in Our Businesses Development Highlights Tropical Oils • Wilmar and ADM completed the transition of Olenex from a marketing and sales partnership to a full-function joint venture with its own assets. • Olenex will leverage the combined capabilities of ADM and Wilmar to serve as a
Slide 7: Continue to Invest in Our Businesses - Tropical Oils
Continue to Invest in Our Businesses Development Highlights Tropical Oils • One new edible oil refinery in Vietnam and one under construction. • Three new edible oil refineries in India. • Two new biodiesel refineries in Indonesia. • One new compound chocolate factory in China. 6
Slide 8: Continue to Invest in Our Businesses - Consumer Products
Continue to Invest in Our Businesses Development Highlights Consumer • Entered into a joint venture with Singapore Food Industries Pte Ltd Products to supply high quality food to the Chinese market. • First central kitchen in Kunshan has obtained its production license. • Two new edible oils packing
Slide 9: Continue to Invest in Our Businesses - Oilseeds & Grains
Continue to Invest in Our Businesses Development Highlights Oilseeds & Grains • Announced a three-party joint venture in Vietnam with Bunge Manufacturing and Wilmar as equal 45% shareholders and Quang Dung – a leading soybean meal distributor in Vietnam and majority owner of Green Feed – retaining i
Slide 10: Continue to Invest in Our Businesses - Oilseeds & Grains
Continue to Invest in Our Businesses Development Highlights Oilseeds & Grains • One new flour mill in China and one in Thailand. Another Manufacturing under construction in Vietnam. • One new rice mill in China • One silica factory, using rice husk as raw material, to be built in China. 9
Slide 11: Continue to Invest in Our Businesses - Sugar
Continue to Invest in Our Businesses Development Highlights Sugar • Announced a new joint venture with Raizen Energia S.A. (Raizen) called “Raizen and Wilmar Sugar Pte Ltd” (RAW) to meet growing global demand for Brazilian very high polarization (VHP) sugar. • Raizen’s output and Wilmar’s existing o
Slide 12: Corporate awards in 2016
Corporate awards in 2016 Fortune Global 500 (ranked 254th) Fortune Magazine Forbes Global 2000 (ranked 359th) Forbes Magazine World’s Most Admired Company in Food Fortune Magazine Production Industry (ranked 3rd) Top 100 Singapore Brands (ranked 5th) BrandFinance® The Business Times and the
Slide 13: Recognised for its Leading Brands and Quality Products
Recognised for its Leading Brands and Quality Products China: • Consumers’ Favourite Food Brand awarded by China National Food Industry Association Arawana Russia: • Gold Medal for toilet soap and laundry soap awarded at International Exhibition Forum Inter Expo Monpari Show 2016 Indonesia: • Top Br
Slide 14: Wilmar's inclusion in the FTSE ST Consumer Goods Index
Leadership in consumer products has led to Wilmar’s inclusion in the FTSE ST Consumer Goods & Services Index and FTSE ST Consumer Goods & Services Liquid 20 Index 13
Slide 15: 2. 2016 Financials
2. 2016 Financials
Slide 16: 2016 Results at a Glance
2016 Results at a Glance vs 2015 Net Profit US$ 972.25 million (5.0%) Core Net Profit US$ 976.60 million (14.1%) Total Revenue US$ 41.40 billion 6.8% EBITDA US$ 2.24 billion 6.9% Earnings per share US$ 0.154 (4.3%) Dividends per share S$ 0.065 (18.8%) Net Debt/Equity 0.81x 0.82x Net Cash Flow from U
Slide 17: Key Segment Results
Key Segment Results US$ Million unless 2016 2015 otherwise stated Volume (M MT) 23.4 23.5 Tropical Oils (Plantation and Revenue 16,855.1 15,607.3 Manufacturing) PBT 689.2 491.5 Oilseeds and Grains Volume (M MT) 29.5 28.7 (Manufacturing and Revenue 17,813.2 17,705.1 Consumer Products) PBT 251.1 689.8
Slide 18: Cash Flow Highlights
Cash Flow Highlights US$ million FY16 FY15 Operating cash flow before working capital changes 2,021 2,042 Net cash flow from operating activities 1,124 2,232 Less : Acquisitions of subsidiaries, joint ventures and (145) (511) associates Capital expenditure (777) (865) Net decrease from bank borrowin
Slide 19: 3. Business Outlook
3. Business Outlook 18
Slide 20: Business Outlook
Business Outlook • The strong performance in the fourth quarter enabled the Group to overcome the losses incurred in the second quarter of the year and achieve satisfactory performance for the full year. • All segments achieved good volume and margin growth during second half of the year. • Looking
Slide 21: 4. Sustainability Update
4. Sustainability Update By Jeremy Goon Chief Sustainability Officer
Slide 22: Wilmar's NDPE Policy
Wilmar’s NDPE Policy NO DEFORESTATION, NO PEAT, NO EXPLOITATION POLICY No Deforestation No Development on Peat No development No development on No burning Progressively Best Management Where feasible, on High Carbon High Conservation reduce Practices for explore options for Stock (HCS) Value (HCV) A
Slide 23: Achievements Since NDPE Policy Launch
Achievements Since NDPE Policy Launch 1st IN THE INDUSTRY to launch a to publish to disclose to launch a sustainability supplying CPO traceability of grievance dashboard mills online mills procedure Achieved 95% Over 80% of Completed field Completed traceability to planted areas assessments on engag
Slide 24: Sustainability Dashboard & Grievance Procedure
Sustainability Dashboard & Grievance Procedure TRANSPARENCY & ACCOUNTABILITY Sustainability Dashboard Grievance Procedure NDPE Policy Progress Updates Nature of Grievance Cases Raised • Full list of suppliers 19 Deforestation • Supply chain maps 4 Human/labour rights violation 3 Social conflict • Tr
Slide 25: Conservation Programme
Conservation Programme PLANTED 240,956 ha 12.3% CONSERVATION AREA AREA Wilmar’s Conservation Initiatives Palm Oil and NGO Alliance Riparian Rehab Programme A collaborative platform that Collaboration with Sabah supports managing orangutans Forestry Department and other wildlife within plantations Ov
Slide 26: Conservation Programme
Conservation Programme SOME SPECIES FOUND IN WILMAR’S CONSERVATION AREAS: Endangered Species Protected Species Borneo Elephant Malayan Sunbear Elephas maximus Helarctos malayanus Borneo Orangutan Marbled Cat Pongo pygmaeus Pardofelis marmorata Proboscis Monkey Leopard Cat Nasalis larvatus Prionailur
Slide 27: Fire Management
Fire Management ZERO TOLERANCE COLLABORATION Zero Tolerance to the use of fire for Fire Free Alliance land preparation or development Seeking a Long-term • 24/7 fire monitoring & daily Solution to forest fires fire updates to HQ • Robust fire prevention & suppression programme • Wilmar is a founding
Slide 28: Labour Transformation
Labour Transformation PARTNERSHIPS TO STRENGTHEN LABOUR RIGHTS Business for Social Responsibility Verité • Wilmar and Golden Agri-Resources • Collaboration to develop robust and collaborate with BSR to formulate practical sustainable solutions to address recurring and approaches to improving labour
Slide 29: Smallholder Empowerment Programmes
Smallholder Empowerment Programmes Support for RSPO Certification Capacity Building Programmes • Sustainable Palm Oil & Traceability with Sabah small producers (SPOTS) • Collaboration with L’oreal, Clariant, Global Amines and Wild Asia to incentivise and facilitate RSPO certification of 500 smallhol
Slide 30: 5. AGM
5. AGM
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