Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — Q1 2008 Earnings Presentation
25 slides from Golden Agri-resources's earnings presentation, May 12, 2008
Slide 1: Interim Performance Presentation
Interim Performance Presentation 1Q 2008 : first quarter ended 31st March 2008 12 May 2008 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 Introduction 5 Section 3 Financial Highlights 11 Section 4 Operational Highlights 16 Section 5 Growth Strategy 21 2
Slide 4: Executive Summary
Section 1 Executive Summary 3
Slide 5: Golden Era for Golden Agri
1Q 2008 Performance Summary Golden Era for Golden Agri • Net Profit increased by 102% to US$443 million • Revenue increased by 172% to US$747 million • Gross profit increased by 158% to US$265 million • EBITDA increased by 128% to US$202 million • Fruit production increased by 29% to 1.8 million ton
Slide 6: Introduction
wa gar ZF gar and food Section 2 Introduction
Slide 7: Overview of GAR
Overview of GAR Indonesia’s largest palm oil plantation company and second largest in the world Well-positioned to enjoy uptrend in Crude Palm Oil (“CPO”) prices Operations in Indonesia and China Vertically integrated operation in Indonesia captures returns from all levels of palm oil value chain In
Slide 8: Operations in Indonesia
Operations in Indonesia Belawan Sumatra Kalimantan Sulawesi Papua Jakarta Tarjun Surabaya Java Bali Plantations and Mills Refineries Tarjun Refinery (under construction) Jakarta Refinery (plan) 7
Slide 9: Operations in China
Operations in China Shanghai Ningbo ZHEJIANG HUNAN JIANGXI FUJIAN GUANGDONG Refinery Zhuhai Crushing Facility Port & Storage Facility Distribution Centers 8
Slide 10: Competitive Strengths
Competitive Strengths 364,000 hectares of plantation under management allowing for efficiency through economies of scale Favorable age profile ensuring production growth 1.3 million hectares land bank1 available (equivalent to 18.5x Singapore2) for expansion Vertically-integrated operations to maxim
Slide 11: Integrated Operations in Indonesia
Integrated Operations in Indonesia Research & Processed Basic product Processing Development product CPO Refining Branded & unbranded cooking oil Plantations & No. of refineries CPO mill Production 2 Harvesting Co-operate with Fatty acid 1,607,877 tons Capacity CIRAD from Planted area (FY 2007) 840,
Slide 12: Financial Highlights
Section 3 Financial Highlights
Slide 13: Financial Summary – 1Q 2008
Financial Summary – 1Q 2008 US$'million 1Q 2008 1Q 2007 % Change Revenue 747 275 172% Gross Profit 265 103 158% EBITDA 202 88 128% Net Profit attributable to equity holders 443 219 102% Comprising: Net gain from changes in fair value of biological assets (Net of tax & Minority Interest)1 307 102 202
Slide 14: Segmental Results – 1Q 2008
Segmental Results – 1Q 2008 (in US$ million) Indonesia Operations China Operations 1Q 2008 1Q 2007 % Change 1Q 2008 1Q 2007 % Change Revenue 585 204 187% 163 72 127% Gross Profit 256 90 185% 8 13 -35% Gross Profit Margin 44% 44% - 5% 18% -13% EBITDA 196 76 156% 6 12 -52% EBITDA Margin 33% 38% -5% 4%
Slide 15: Revenue By Product and Geographical Location
Revenue By Product and Geographical Location Record revenues of US$747 million mainly from CPO and refined palm oil based products Revenue - By Product Revenue – By Country PK Others 2% 1% Soybean Oil 8% Indo Local Soybean China Local 24% Meal 5% 22% Branded Products 12% CPO 52% Indo Export Unbrande
Slide 16: Financial Position
Financial Position Strong balance sheet Low debt to equity ratio with capacity to gear up for expansion (in US$ million) 31-Mar-08 31-Dec-07 % Change Total Assets 5,698 5,013 14% Cash and Short-Term Investments 188 147 29% Total Liabilities 1,836 1,632 13% Interest Bearing Debts 556 492 13% Total Eq
Slide 17: Operational Highlights
Section 4 Operational Highlights
Slide 18: Plantation Area
Plantation Area GAR is one the largest oil palm plantation companies in the world with integrated operations 31 Dec 31 Mar 31 Mar 31 Mar 2007/2008 (in ha) 2007 2007 2008 % increase Planted Area 359,732 338,185 363,642 7.5% Nucleus 277,629 257,507 281,511 9.3% Plasma 82,103 80,678 82,131 1.8% Mature
Slide 19: Plantation Area
Plantation Area With more than 309,000 hectares of mature area, age profile of trees favourably positions GAR to capture the surge in CPO prices Immature Young Prime Old Total (in ha) (0-3 years) (4-6 years) (7-18 years) (>18 Years) 1Q 2008 Nucleus 52,910 20,049 170,524 38,028 281,511 Plasma 1,581 3
Slide 20: Production Highlights
Production Highlights Quarterly Palm Product Production increased by 31% to 538,000 tons Increasing FFB and CPO yields due to improved weather conditions and maturing trees 1Q 2008 1Q 2007 % increase (decrease) FFB Production (tons) 1,782,897 1,380,077 29.2% Nucleus 1,331,714 1,042,629 27.7% Plasma
Slide 21: Production Performance
Production Performance • Record first quarter Palm Product Production of 538,000 tons in 2008 • Consistent year-on-year increases in volumes and yields FFB Production Palm Product Production (‘000 Tons) (‘000 Tons) (Ton/ha) 6,765 21.77 22.69 7,000 2,100 20.60 24 6,001 5,870 359 6,000 1,687 1,800 337
Slide 22: Growth Strategy
wa gar ZF gar and food Section 5 Growth Strategy
Slide 23: Growth Strategy
Growth Strategy Commitment to sound business strategies and continuous operational excellence will enable GAR to sustain growth and profitability Continued Growth and Profitability Food Industrial Bio-Fuel Strong Plantation Foundation Second largest in the world with 364,000 ha planted Future expans
Slide 24: 1Q 2008 Growth Achievements and Targets
1Q 2008 Growth Achievements and Targets Expanding Oil Palm Plantations (via planting & acquisition) • Target additional planted area of 60,000 ha • We achieved 3,900 ha of new planting for 1Q 2008 and we have 6,000 ha of cleared land (ready for planting). The planting will accelerate in the upcoming
Slide 25: Contact Us
Contact Us If you need further information, please contact: Golden Agri-Resources Ltd c/o 3 Shenton Way #17-03 Shenton House Singapore 068805 Website : www.goldenagri.com.sg Telephone : +65 62207720 Facsimile : +65 62207020 Contact Person : Rafael B. Concepcion, Jr. (rafaelc@goldenagri.com.sg) Suwan
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