Golden Agri-Resources Ltd · SGX:E5H
Golden Agri-Resources — Q1 2017 Earnings Presentation
21 slides from Golden Agri-Resources's earnings presentation, May 15, 2017
Slide 1: Interim Performance Presentation YTD Mar 2017
Golden Agri-Resources Ltd Interim Performance Presentation YTD Mar 2017 : three-month period ended 31st March 2017 15 May 2017
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
agribusiness and food gar Executive Summary
Slide 5: Executive Summary
Executive Summary 1Q 2017 delivers strong performance supported by recovery in plantation output and higher prices EBITDA1 (US$ million) 150 141 140 1Q 2017 vs 1Q 2016 results 110 Revenue US$2,046 mn 37% 76 EBITDA US$183 mn 29% 70 62 Underlying profit1 US$84 mn 70% 45 39 Palm product output 696,000
Slide 6: Financial Highlights
Financial Highlights slide 6
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance US$ million 1Q 2017 1Q 2016 YoY 4Q 2016 QoQ Revenue 2,046 1,494 37% 2,138 -4% Gross Profit 291 262 11% 308 -5% EBITDA 183 142 29% 179 2% Underlying Profit1 84 49 70% 66 26% Gain/(loss) on revaluation of biological assets2 -1 2 n.m -12 -95% Depreciation of bearer pl
Slide 8: Financial Position
Financial Position Prudent balance sheet with improving gearing ratios US$ million 31-Mar-17 31-Dec-16 Change Total Assets 8,401 8,306 1% Cash and short-term investments 394 355 11% Fixed Assets1 3,841 3,891 -1% Total Liabilities 4,273 4,210 1% Adjusted Net Debt2 1,618 1,745 -7% Net Debt3 2,544 2,71
Slide 9: Segmental Performance
Segmental Performance slide 9
Slide 10: Segmental Results Plantations and Palm Oil Mills
Segmental Results Plantations and Palm Oil Mills Expanding 1Q 2017 EBITDA margin supported by higher prices 1Q 2017 1Q 2016 YoY 4Q 2016 QoQ Revenue (US$ million) 475 304 56% 579 -18% EBITDA (US$ million) 141 76 85% 140 1% EBITDA margin 30% 25% 5% 24% 6% FFB Production (‘000 tonnes) 2,449 1,870 31% 3
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 31 Mar 2017 10% 3% 7% 476,269 488,276 488,252 49,599 12,007 466,440 101,217 98,626 102,324 102,255 35,560 37% 375,052 367,814 385,952 385,997 181
Slide 12: Segmental Results Palm and Lauric
Segmental Results Palm and Lauric EBITDA margin declined as input prices increased 1Q 2017 1Q 2016 YoY 4Q 2016 QoQ Revenue (US$ million) 1,855 1,262 47% 1,837 1% Sales Volume (‘000 tonnes) 2,455 2,094 17% 2,475 -1% EBITDA (US$ million) 39 62 -37% 45 -14% EBITDA margin 2.1% 4.9% -2.8% 2.5% -0.4% We c
Slide 13: Strong Position Across the Downstream Value Chain
Strong Position Across the Downstream Value Chain Origination of Processing & Logistic Destination Market Raw Materials Product Customisation Excellence Expertise Sourcing with • The construction of • Golden Stena Weco • Increasing presence increasing traceability: second biodiesel plant is the larg
Slide 14: Segmental Results Oilseeds and Others
Segmental Results Oilseeds and Others Prudent management mitigated less favourable market conditions during 1Q 2017 1Q 2017 1Q 2016 YoY 4Q 2016 QoQ Oilseeds Revenue (US$ million) 187 176 7% 263 -29% Sales Volume (‘000 tonnes) 324 366 -11% 471 -31% EBITDA (US$ million) 2 4 -43% -6 n.m EBITDA margin 1
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 Be the best, Excellence – Improvement – best-in-class research and – m
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 • Focus on replanting with higher-yielding seeds to sustain production growth • Continu
Slide 18: Towards Responsible Palm Oil Production
Towards Responsible Palm Oil Production Progress on fully traceable palm oil • On track to achieve full Traceability to the Plantation (TTP) for GAR-owned mills • Overall, GAR-owned mills have achieved 89% TTP • 19 GAR mills have achieved full TTP MOU with CIRAD to develop sustainable plantations •
Slide 19: Appendix
Appendix slide 19
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 hectares (0-3 years) (4-6 years) (7-18 years) (19-25 years) (>25 years) 31 March 2017 Nucleus 10,900 30,652 177,660 129,701 37,039 385,952 Plasma 1,1
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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