Singapore Exchange Ltd. · SGX:S68

Singapore Exchange — Halcyon Agri — Q1 2014 Earnings Presentation

17 slides from Singapore Exchange's earnings presentation, May 6, 2014

  1. Slide 1: Building a Leading Global Natural Rubber Producer

    H A L C Y O N AG RI Building a Leading Global Natural Rubber Producer Q1 2014 Results 6 May 2014

  2. Slide 2: Disclaimer

    Disclaimer This presentation has been prepared by Halcyon Agri Corporation Limited (“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 base

  3. Slide 3: Agenda

    Agenda 1 1Q 2014 results 2 Key developments in 1Q 2014 3 Outlook 3 H A L C Y O N AG RI

  4. Slide 4: 1Q 2014 results

    1 1Q 2014 results H A L C Y O N AG RI

  5. Slide 5: Key facts for 1Q 2014

    Key facts for 1Q 2014  1Q 2014 sales volume up 16% over 1Q 2013 at 19,161 tonnes Sales  Increase entirely from HMK1 & HMK2 in Palembang; HKB1 & HKB2 in Malaysia only commenced Volume commercial production towards the end of March 2014 and HGE in Jambi will be operational towards the end of 2Q 2014

  6. Slide 6: 1Q 2014 results summary

    1Q 2014 results summary Income Statement highlights 1Q US$m 2014 2013 Revenue 40.8 50.1 Gross profit 2.9 4.0 Operating profit 0.6 2.2 * EBITDA (adjusted) 1.3 2.8 * Net profit (adjusted) 0.4 1.8 Sales volume (tonnes) 19,161 16,534 Gross material profit per mT (US$) 284 376 * EBITDA per mT (US$) 68 16

  7. Slide 7: Gross material profit (GMP) track record

    Gross material profit (“GMP”) track record Quarterly GMP (US$/tonne) Q1 GMP trend (US$/tonne) 375 504 331 449 415 Average 408 284 $382 373 375 331 297 284 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 2012 Q1 2013 Q1 2014 2012 2012 2012 2012 2013 2013 2013 2013 2014  Last two quarters below historic  Excess TSR20

  8. Slide 8: GMP, ASP & TSR20

    GMP, ASP & TSR20 Average TSR20 mkt price Average sales revenue Average selling price Average GMP (US$/tonne) (US$/tonne) premium (US$/tonne) (US$/tonne) 447 412 4,962 371 379 4,515 284 3,155 3,311 2,510 2,591 1,981 2,127 156 146 81 2011 2012 2013 Q1 2011 2012 2013 Q1 2011 2012 2013 Q1 2011 2012 2013

  9. Slide 9: Selling & General administrative expenses

    Selling & General administrative expenses 1.94 Admin expenses +US$0.43m 1.51 Selling expenses 0.31 0.34 Q1 2013 Q1 2014  Higher administrative expenses reflecting the significant increase in the scale of operations  US$0.2 million of expenses from acquisitions which had not yet produced revenue in

  10. Slide 10: Cash flow

    Cash flow 1Q US$m 2014 2013 Net cash from operating activities, before working capital changes 2.5 1.9 Changes in working capital (6.2) (9.5) Net cash used in operating activities (3.7) (7.6) Investing activities (31.8) (2.0) Financing activities 5.6 15.6 Net (decrease)/increase in cash (29.9) 6.0 

  11. Slide 11: Balance sheet

    Balance sheet US$m 31-Mar-14 31-Dec-13 Total assets 157.4 107.8  Significant expansion in assets Working capital cash and bank balances 14.6 14.9 due to acquisitions  Increase in liabilities Inventories 21.2 16.4 primarily due to US$24.7 million Trade receivables 5.9 7.3 consideration payable on T

  12. Slide 12: Key developments in 1Q 2014

    2 Key developments in 1Q 2014 H A L C Y O N AG RI

  13. Slide 13: Key initiatives in 1Q 2014

    Key initiatives in 1Q 2014  Successfully completed acquisitions:  January 16 – completion of Chip Lam Seng assets acquisition (now Hevea KB)  January 29 – completion of JFL Agro acquisition  February 19 – completion of PT. Golden Energi acqusition (now Hevea GE)  Hevea KB:  Commenced operation

  14. Slide 14: Halcyon Agri today

    Halcyon Agri today Strategic initiatives 7,100 ha to be Upstream suppliers Smallholders, dealers developed as 400+ smallholders & dealer suppliers JFL Agro rubber plantation in plantation in Kelantan Malaysia Midstream Potential 360,000 Hevea MK I Hevea MK II Hevea GE Hevea KB I Hevea KB II tonnes a

  15. Slide 15: Outlook

    3 Outlook H A L C Y O N AG RI

  16. Slide 16: Outlook

    Outlook Significantly  Current committed offtake for FY2014 of 73,596 tonnes Sales higher in 2014  Ramping up of operations in Hevea KB in Malaysia and Hevea GE in Jambi, Indonesia over Volume the course of the remaining 3 quarters  After recovering somewhat in March 2014, the market price for TS

  17. Slide 17: H

    H A L C Y O N AG RI

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