Wilmar International Limited · SGX:F34
Wilmar International — FY2009 Earnings Presentation
26 slides from Wilmar International's earnings presentation, Mar 1, 2010
Slide 1: Wilmar International Limited 4Q09 Results Briefing
WILMAR INTERNATIONAL LIMITED 4Q09 RESULTS BRIEFING 1 MARCH 2010 1
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: Presentation Overview
PRESENTATION OVERVIEW • 4Q09 Financial Performance • Risk Management • Business Update • Questions & Answers 3
Slide 4: 4Q09 Financial Performance
4Q09 Financial Performance 4
Slide 5: Results Overview
Results Overview 4Q09 vs 4Q08 US$m Revenue 6,916 19% Net profit 442 18% Earnings per share in US cents 6.51 18% (fully diluted) 12M09 vs 12M08 US$m Revenue 23,885 -18% Net profit 1,882 23% Earnings per share in US cents 27.4 15% (fully diluted) 5
Slide 6: Revenue
Revenue Revenue Volume US$’million ‘million MT 30,000 32.7 35.0 • 4Q09 vs 4Q08 - revenue up 19% on 34.7 higher commodities 25,000 29,145 30.0 prices 23,885 - volume up 15%, 25.0 stronger palm & 20,000 laurics and oilseeds & grains volume 20.0 15,000 • FY09 vs FY08 15.0 - revenue down 18% on lower 10
Slide 7: Net Profit
Net Profit US$’million • 4Q09 vs 4Q08 1,500 1,882.0 - Up 18% - Better profit from 1,531.0 oilseeds & grains, consumer products and plantations & palm oil 1,000 mills • FY09 vs FY08 500 - Up 23% - Better profit from all 442.0 major segments, 373.6 particularly consumer products and plantations & palm
Slide 8: Pretax Profit Contribution by Business Segment
Pretax Profit Contribution by Business Segment US$' million 2100.0 2,005.8 Others Plantations & Palm Oil Mills 1900.0 Consumer Products 1,710.0 1700.0 Oilseeds & grains Palm & Laurics 1500.0 1300.0 1100.0 900.0 700.0 492.1 500.0 329.9 300.0 100.0 -100.0 4Q2008 4Q2009 FY2008 FY2009 * Exclude Share of
Slide 9: Pretax Profit Growth by Business Segment
Pretax Profit Growth by Business Segment US$' million 4Q09 4Q08 ∆ FY09 FY08 ∆ Merchandising & Processing 293.3 214.4 37% 1,299.7 1,235.3 5% Palm & laurics 147.5 155.7 -5% 692.8 644.9 7% Oilseeds & grains 145.8 58.6 149% 606.9 590.4 3% Consumer Products 56.3 26.5 113% 225.3 75.5 198% Plantations & Pa
Slide 10: Pretax Profit by Business Segment
Pretax Profit by Business Segment FY09 FY08 Plantations & Plantations & Others Others palm oils mills palm oils mills Consumer 4.1% 4.0% Associates 19.3% Associates Consumer 17.9% products 6.1% 2.3% products 11.0% 4.2% 33.8% 32.4% 29.5% Oilseeds 35.4% Oilseeds Palm & laurics Palm & laurics & grains
Slide 11: (A) Plantations & Palm Oil Mills
(A) Plantations & Palm Oil Mills US$ million 4Q09 4Q08 ∆ FY09 FY08 ∆ Revenue 326.3 273.9 19% 1,119.0 1,320.5 -15% Profit before tax 122.2 86.6 41% 396.9 326.7 21% Planted area (ha) 235,799 223,258 6% 235,799 223,258 6% Mature area harvested (ha) 159,464 141,407 13% 159,464 141,407 13% FFB production
Slide 12: Plantation Age Profile
Plantation Age Profile in hectares Average Age of Palm 31 Dec 2009 0 to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Indonesia 65,751 38,840 37,366 19,847 11,562 173,366 Malaysia 2,848 8,085 25,687 17,906 7,907 62,433 Total planted area 68,599 46,925 63,053 37,753 19,469 235,799 % of total pla
Slide 13: (B) Merchandising & Processing - Palm & Laurics
(B) Merchandising & Processing - Palm & Laurics 4Q09 4Q08 ∆ FY09 FY08 ∆ Revenue (US$ million) 3,550 3,313 7% 12,627 17,497 -28% Sales volume (‘000 5,286 4,864 9% 19,070 19,433 -2% MT) Profit before tax 147.5 155.7 -5% 692.8 644.9 7% (US$ million) Profit before tax per 27.9 32.0 -13% 36.3 33.2 9% MT
Slide 14: (C) Merchandising & Processing – Oilseeds & Grains
(C) Merchandising & Processing – Oilseeds & Grains 4Q09 4Q08 ∆ FY09 FY08 ∆ Revenue (US$ million) 2,567 1,778 44% 8,156 8,062 1% Sales volume (‘000 MT) 4,547 3,660 24% 15,608 13,288 18% Profit before tax 145.8 58.6 149% 606.9 590.4 3% (US$ million) Profit before tax per MT 32.1 16.0 100% 38.9 44.4 -1
Slide 15: (D) Consumer Products
(D) Consumer Products 4Q09 4Q08 ∆ FY09 FY08 ∆ Revenue (US$ million) 1,093 970 13% 3,898 4,758 -18% Sales volume (‘000 MT) 909 736 24% 3,191 3,062 4% Profit before tax 56.3 26.5 113% 225.3 75.5 198% (US$ million) Profit before tax per MT 61.9 36.0 72% 70.6 24.6 187% (US$/MT) • Stronger pretax profit
Slide 16: Low Gearing
Low Gearing As at As at US$ million 31 Dec 09 31 Dec 08 Debt/Equity (x) 0.41 0.25 - Net Debt 4,445 2,390 - Shareholders' funds 10,931 9,606 Adjusted Debt/Equity (x) 0.06 0.10 - Liquid working capital * 3,764 1,407 - Adjusted Net Debt 681 983 Interest coverage (x) # 52.8 7.6 * Liquid working capital
Slide 17: Funding & Liquidity
Funding & Liquidity As at 31 Dec 09 US$ million Available Utilised Balance Credit facilities : Committed 1,361 1,225 136 Trade finance 15,196 7,902 7,294 Short term 799 453 346 Total credit facilities 17,356 9,580 7,776 Available free cash 827 Total liquidity 8,603 • 83% of utilised facilities were
Slide 18: Cashflow
Cashflow Year ended Year ended 31 Dec 09 31 Dec 08 Operating cashflow (US$ million) (520) 3,231 Turnover days - Inventory 56 43 - Trade Receivables 25 16 - Trade Payables 15 14 • Negative operating cashflow due to increase in working capital requirements on higher commodities prices and stockholding
Slide 19: Key Indicators
Key Indicators Year ended Year ended 31 Dec 09 31 Dec 08 Return on Average Equity 18.3% 17.5% Return on Average Capital Employed 17.0% 15.7% Return on Average Assets 9.1% 9.2% in US cents EPS (fully diluted) 27.4 23.7 NTA per share 108.0 88.7 NAV per share 171.1 150.4 in Singapore cents Dividends (i
Slide 20: Risk Management
Risk Management 20
Slide 21: Risk Management
Risk Management Commodities Credit Risk Price Risk Risk Governance Structure Foreign Exchange Interest Rate Risk Risk 21
Slide 22: Risk Governance Structure
Risk Governance Structure Board-level Risk Management Committee (RMC) - Chaired by Lead Independent Director - Oversees ERC Independent - Reviews overall risk management guidelines/ Middle Office framework, policies & systems - Captures and - Reviews & approves enterprise risk limits/ measures Group
Slide 23: Business Update
Business Update = = Fl ee Z 4 f 1 eeo 8s sac
Slide 24: Shareholding Structure
Shareholding Structure (Post WHPL Liquidation) As at Post 31 Dec 2009 Liquidation Kuok Group 31.0% 31.2% The liquidation exercise will increase the WHPL 29.3% -* liquidity and free float of Wilmar shares. Possible ADM 10.4%** 16.1% weighting increase in major stock indices. Currently Public 18.8% 24
Slide 25: Looking Forward
Looking Forward • Resilient global demand for food & agri commodities • Positive growth prospects for emerging markets • Growing demand for high quality processed agricultural and consumer products due to rising affluence & rapid urbanisation in China • Wilmar is well-positioned due to: – Investment
Slide 26: Questions & Answers
Questions & Answers 26