Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — Q3 2016 Earnings Presentation
21 slides from Golden Agri-resources's earnings presentation, Nov 14, 2016
Slide 1: Interim Performance Presentation, Third quarter ended 30th September 2016
Golden Agri-Resources Ltd Interim Performance Presentation Third quarter ended 30th September 2016 14 November 2016
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 4 2 Financial Highlights 6 3 Segmental Performance 9 4 Strategy and Outlook 15 5 Appendix 19 slide 3
Slide 4: Executive Summary
Executive Summary 5) gar agribusiness and food
Slide 5: Executive Summary
Executive Summary Integrated business model supported better 3Q 2016 results despite lower palm product output EBITDA (US$ million) • 3Q 2016 vs 3Q 2015 350 307 Revenue US$1,836 mn 17% 300 EBITDA US$165 mn 29% 250 239 Net Profit1 US$220 mn n.m Palm product output 624,400 MT 22% 200 CPO FOB price US$
Slide 6: Financial Highlights
Financial Highlights slide 6
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance US$ million 9M 2016 9M 2015 YoY 3Q 2016 3Q 2015 YoY Revenue 5,071 4,958 2% 1,836 1,574 -17% Gross Profit1 707 736 -4% 280 277 1% EBITDA 393 401 -2% 165 128 29% Interest on borrowings -95 -98 -3% -32 -35 -8% Depreciation and amortisation1 -256 -226 13% -82 -77 6% Fo
Slide 8: Financial Position
Financial Position Gearing remains prudent after the adoption of amended IAS 16 and IAS 41 starting 2016 (in US$ million) 30-Sep-16 31-Dec-151 Change Total Assets 8,367 8,036 4% Cash and short-term investments 388 502 -23% Fixed Assets2 3,973 4,071 -2% Total Liabilities 4,318 4,286 1% Adjusted Net D
Slide 9: Segmental Performance
Segmental Performance slide 9
Slide 10: Segmental Results Plantations and Palm Oil Mills
Segmental Results Plantations and Palm Oil Mills EBITDA in 2016 still impacted by low production 9M 2016 9M 2015 YoY 3Q 2016 3Q 2015 YoY Revenue (US$ million) 978 1,132 -14% 379 359 5% EBITDA (US$ million) 239 307 -22% 90 97 -6% EBITDA margin 24% 27% -3% 24% 27% -3% FFB Production (‘000 tonnes) 5,74
Slide 11: Plantation Area
Plantation Area GAR’s oil palm plantations continue to be leading in scale and operational excellence Mature Area - ha Planted Area - ha Age Profile as of 30 Sep 2016 482,228 485,606 6% 4% 465,057 460,336 101,241 101,219 29,765 8% 98,028 97,368 17,171 41,027 367,029 362,968 380,987 384,387 39% 186,5
Slide 12: Segmental Results Palm and Lauric
Segmental Results Palm and Lauric Margin improvement from focus on enhanced integration and operational excellence 9M 2016 9M 2015 YoY 3Q 2016 3Q 2015 YoY Revenue (US$ million) 4,425 4,445 - 1,626 1,407 16% Sales Volume (‘000 tonnes) 6,499 6,464 1% 2,227 2,105 6% EBITDA (US$ million) 135 83 64% 61 2
Slide 13: Strong Position Across the Downstream Value Chain
Strong Position Across the Downstream Value Chain Sourcing of Product Sales and raw materials Processing customisation distribution Maintained sales New biodiesel plant is in Sales of palm based Destination sales volume of palm- operation with capacity refined products contributed 76% to based produ
Slide 14: Segmental Results Oilseeds and Others
Segmental Results Oilseeds and Others Prudent management coupled with improved market environment resulting in higher EBITDA at our oilseeds business in China 9M 2016 9M 2015 YoY 3Q 2016 3Q 2015 YoY 1Q 2015 4Q 2014 QoQ 1Q 2014 YoY Oilseeds Revenue (US$ million) 490 468 5% 142 150 -5% Sales Volume (‘
Slide 15: Strategy and Outlook
Strategy and Outlook slide 15
Slide 16: Strategic Priorities
Strategic Priorities Build on core competitive strengths and leverage scale to maximize long- term shareholder returns To strengthen our position as the world’s leading palm oil plantation company Operational Yield Cost Efficiency – Excellence – best-in-class Improvement – mechanisation Be the best,
Slide 17: Growth Strategy and Outlook
Growth Strategy and Outlook Capitalising on the robust fundamentals of the industry, GAR continues to enhance its integrated operation capabilities to optimise profit opportunities across the value chain Upstream • Focusing on replanting with higher-yielding seeds to sustain production growth • Cont
Slide 18: Towards Sustainable Palm Oil Production
Towards Sustainable Palm Oil Production Progress on fully traceable palm oil Traceability to the Plantation (TTP) data for GAR-owned mills reported on the Sustainability Dashboard. (GAR already knows 90% of the source of palm oil to its mills) 2nd SMART SEED workshop held in Medan in September for o
Slide 19: Appendix
Appendix ws) gar | agribusiness and food
Slide 20: Age Profile
Age Profile The average age of GAR’s plantations is 16 years, securing the long-term growth of its production Immature Young Prime 1 Prime 2 Old Total (in hectares) (0-3 years) (4-6 years) (7-18 years) (19-25 years) (>25 years) 30 September 2016 Nucleus 13,958 35,245 177,713 130,897 23,174 380,987 P
Slide 21: 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 slide 21
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