Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Halcyon Agri — Q2 2014 Earnings Presentation
18 slides from Singapore Exchange's earnings presentation, Aug 14, 2014
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 Q2 2014 Results 14 August 2014
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
Slide 3: Agenda
Agenda 1 Q2 2014 results 2 Key developments in Q2 2014 3 Outlook 3 H A L C Y O N AG RI
Slide 4: Q2 2014 results
1 Q2 2014 results H A L C Y O N AG RI
Slide 5: Key facts for Q2 2014
Key facts for Q2 2014 Q2 2014 sales volume in line with Q1 2014 at 19,336 tonnes Sales Volume slightly lower than Q2 2013 due to tight raw material supplies as a result of the low market Volume price for natural rubber Recovery in Gross Material Profit (“GMP”) experienced in Q2 2014 as the “pe
Slide 6: Key facts for H1 2014
Key facts for H1 2014 1H 2014 sales volume up 5.6% over 1H 2013 at 38,497 tonnes Sales Increase includes contribution of 2,278 tonnes from HKB in Malaysia Volume Margins for the half affected by “perfect storm” in Q1 2014 and depressed rubber market Margins Gross Material Profit 21% lower at
Slide 7: Q2 and H1 2014 results summary
Q2 and H1 2014 results summary Income Statement highlights H1 Q2 US$m 2014 2013 2014 2013 Revenue 78.0 104.1 37.2 53.9 Gross profit 6.3 9.5 3.4 5.4 Operating profit 1.7 5.6 1.1 3.4 * EBITDA (adjusted) 2.8 6.5 1.5 3.7 * Net profit (adjusted) 1.1 4.5 0.6 2.7 Sales volume (tonnes) 38,497 36,459 19,336
Slide 8: Gross material profit (GMP) track record
Gross material profit (“GMP”) track record Quarterly GMP (US$/tonne) Q2 GMP trend (US$/tonne) 504 504 408 449 415 Average 408 $377 338 373 375 338 331 297 284 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 2012 Q2 2013 Q2 2014 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 Last three quarters below historic
Slide 9: GMP, ASP & TSR20
GMP, ASP & TSR20 Average TSR20 mkt price Average sales revenue Average selling price Average GMP (US$/tonne) (US$/tonne) premium (US$/tonne) (US$/tonne) 447 412 4,962 371 379 396 4,515 338 284 3,311 3,155 2,510 2,591 2,127 2,124 1,981 156 1,728 146 81 2011 2012 2013 Q1 Q2 2011 2012 2013 Q1 Q2 2011 2
Slide 10: Selling & General administrative expenses
Selling & General administrative expenses Q2 2014 vs Q2 2013 1H 2014 vs 1H 2013 2.34 4.62 +$0.31m +$0.77m 2.03 3.85 1.85 3.79 Admin expenses Admin expenses 1.66 3.17 Selling expenses Selling expenses 0.37 0.49 0.68 0.83 Q2 2013 Q2 2014 H1 2013 H1 2014 SG&A expenses higher reflecting the scaling up
Slide 11: Cash flow
Cash flow H1 Q2 US$m 2014 2013 2014 2013 Net cash from operating activities, before working capital changes 1.6 5.9 (0.9) 4.1 Changes in working capital (10.4) (7.1) (4.2) 2.3 Net cash (used in)/generated from operating activities (8.8) (1.2) (5.1) 6.4 Investing activities (34.5) (5.7) (2.8) (3.6) F
Slide 12: Balance sheet
Balance sheet US$m 30-Jun-14 31-Dec-13 Total assets 175.0 107.8 Significant expansion in assets Working capital cash and bank balances 21.7 14.9 due to acquisitions Inventories 30.1 16.4 Increase in liabilities due to Trade receivables 5.0 7.3 consideration payable on acquisitions, increase in T
Slide 13: Key developments in Q2 2014
2 Key developments in Q2 2014 H A L C Y O N AG RI
Slide 14: Acquisition of Anson
Acquisition of Anson Halcyon Agri has signed definitive agreements to acquire Anson Company (Private) Limited (“Anson”) for an aggregate purchase consideration of S$450m Anson, part of the Lee Rubber Group, owns and operates 9 crumb rubber factories in Indonesia with a total licensed capacity of 408
Slide 15: Profile of Halcyon Agri post acquisition of Anson
Profile of Halcyon Agri post acquisition of Anson Halcyon Agri 2014: 14 factories with combined annual licensed capacity of 748,000 tonnes 7,100 Ha 568,000 mT capacity 180,000 mT 44,000 mT 180,000 mT capacity 7,100 Ha cultivable land c.600km radius from Singapore Hevea Global Global Sales &
Slide 16: Outlook
3 Outlook H A L C Y O N AG RI
Slide 17: Outlook
Outlook Significantly Current committed offtake for remainder of FY2014 of 46,853 tonnes, bringing the full Sales year total to 86,943 tonnes, excluding any contribution from Anson higher in 2014 Volume Contribution from Anson expected for c.3 months in FY2014 The market price for TSR20 natura
Slide 18: H
H A L C Y O N AG RI