Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — H1 2014 Earnings Presentation
23 slides from Golden Agri-resources's earnings presentation, Aug 14, 2014
Slide 1: Golden Agri-Resources Ltd Interim Performance Presentation
Golden Agri-Resources Ltd Interim Performance Presentation 1H 2014 : first-half period ended 30th June 2014 14 August 2014 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: Contents
Contents 1 Executive Summary 3 2 Financial Highlights 5 3 Plantation Highlights 10 4 Downstream Highlights 14 5 Strategy and Outlook 16 6 Appendix 20 2
Slide 4: Executive Summary
1 Executive Summary Ou agribusiness and food
Slide 5: Executive Summary
Executive Summary Revenue grows while higher raw material costs impact performance of downstream operations EBITDA Price (US$/MT) (US$ million) Output (‘000 MT) • 1H 2014 vs 1H 2013 results 575 1,700 Revenue $3,953 mn 27% 525 EBITDA $331 mn 6% 475 1,500 Net Profit1 $131 mn 17% 425 1,300 Palm product
Slide 6: Financial Highlights
2. Financial Highlights ~*) gar agribusiness and food
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance US$ million 1H 2014 1H 2013 YoY 2Q 2014 2Q 2013 YoY Revenue 3,953 3,112 27% 2,039 1,682 21% Gross Profit 730 661 10% 340 304 12% EBITDA 331 351 -6% 131 140 -7% Interest on borrowings -58 -47 23% -30 -24 28% Depreciation and amortisation -72 -64 13% -37 -33 12% Fore
Slide 8: Segmental Revenue
Segmental Revenue US$ million 1H 2014 1H 2013 YoY 2Q 2014 2Q 2013 YoY Plantations and palm oil mills1 1,019 802 27% 518 375 38% Volume (‘000 tonnes) 1,426 1,231 16% 735 563 31% Palm and lauric2 3,380 2,398 41% 1,744 1,273 37% Volume (‘000 tonnes) 4,020 3,104 30% 2,049 1,653 24% Oilseeds3 425 580 -27
Slide 9: Segmental EBITDA
Segmental EBITDA US$ million 1H 2014 1H 2013 YoY 2Q 2014 2Q 2013 YoY Plantations and palm oil mills1 331 233 42% 160 100 59% Margin 33% 29% 4% 31% 27% 4% Palm and lauric2 40 104 -62% 10 30 -66% Margin 1% 4% -3% 1% 2% -1% Oilseeds3 -43 7 n.m -40 5 n.m Margin -10% 1% -11% -19% 1% -20% Others4 2 5 -56%
Slide 10: Financial Position
Financial Position Balance sheet fundamentals remain strong with ample liquidity and prudent gearing (in US$ million) 30-Jun-14 31-Dec-13 Change Total Assets 14,629 14,148 3.4% Cash and Short-Term Investments 583 587 -0.7% Trade Receivables and Inventories 1,437 1,246 15.3% Fixed Assets1 10,471 10,3
Slide 11: Plantation Highlights
3 Plantation Highlights ~*) gar agribusiness and food
Slide 12: Plantation Area
Plantation Area GAR’s oil palm plantations continue to be leading in scale and operational excellence Mature Area - ha Planted Area - ha 470,590 471,100 441,751 430,711 100,622 99,998 95,799 92,221 345,952 369,968 371,102 338,490 30‐Jun‐14 31‐Dec‐13 30‐Jun‐14 31‐Dec‐13 Nucleus Plasma Nucleus Plasma
Slide 13: Planted Area Age Profile
Planted Area Age Profile GAR’s long-term growth is supported by favourable age profile of its plantations Hectarage as of 30 Jun 2014 Hectarage as of 31 Dec 2013 5% 6% 4% 9% 22,578 14% 20,282 23% 17% 29% 28,839 40,389 65,746 107,079 137,681 79,912 215,746 223,438 46% 47% Notes: 1. Total planted area
Slide 14: Production Performance
Production Performance Production continued to show significant growth year-on-year 1H 2014 1H 2013 Change 2Q 2014 2Q 2013 Change FFB Production (‘000 tonnes) 4,734 4,116 15% 2,491 1,967 27% Nucleus 3,714 3,222 15% 1,931 1,536 26% Plasma 1,020 894 14% 560 431 30% FFB Yield (tonnes/ha) 10.7 9.5 13% 5
Slide 15: Downstream Highlights
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Slide 16: Downstream Highlights – 1H 2014
Downstream Highlights – 1H 2014 Sourcing of Product Sales and raw materials Processing customisation distribution • Over 4 million • Full utilisation of all • Sales of palm • Destination sales grew tonnes of palm our refineries in based refined by 72% year-on-year, based products Indonesia products
Slide 17: Strategy and Outlook
5 Strategy and Outlook ~*) gar agribusiness and food
Slide 18: 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 Sustain cost Optimise Grow Shift product To stay leadership value destination mix to higher throughout business valu
Slide 19: Holistic Approach to Sustainability
Holistic Approach to Sustainability Certification received as at 31 July 2014 • RSPO 225,187 ha of plantations including smallholder plantations of 49,909 ha, 20 mills, 3 kernel crushing plants, 2 refineries and 1 bulking station • ISCC 266,843 ha of plantations including smallholder plantations of
Slide 20: Growth Strategy and Outlook
Growth Strategy and Outlook GAR continues to expand its operation capabilities to capitalise on the robust long-term industry outlook, best-in-class plantation management and solid financial position Upstream • Expanding palm oil plantations by 20,000-30,000 hectares in 2014 through organic growth a
Slide 21: Appendix
6 Appendix ~*) gar agribusiness and food
Slide 22: Age Profile
Age Profile The average age of GAR’s plantations is 14 years, securing the long-term growth of its production 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 June 2014 Nucleus 24,017 54,131 175,315 93,927 22,578 369,968 Plasma 4,822 11
Slide 23: 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 22
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