Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — FY2016 Earnings Presentation
22 slides from Golden Agri-resources's earnings presentation, Feb 24, 2017
Slide 1: gar agribusiness and food
gar agribusiness and food
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 10 4 Strategy and Outlook 16 5 Appendix 20 slide 3
Slide 4: Executive Summary
Executive Summary 9) gar agribusiness and food
Slide 5: Executive Summary
Executive Summary Integrated business model delivers strong 2016 results amidst softer palm product output EBITDA (US$ million) • 4Q 2016 vs 4Q 2015 415 Revenue US$2,138 mn 38% 410 379 EBITDA US$179 mn 27% 350 Net Profit1 US$46 mn 137% 290 Palm product output 877,077 MT 7% 230 CPO FOB price US$706/M
Slide 6: Financial Highlights
Financial Highlights slide 6
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance US$ million FY 2016 FY 2015 YoY 4Q 2016 4Q 2015 YoY Revenue 7,209 6,510 11% 2,138 1,552 38% Gross Profit1 1,014 1,005 1% 308 269 14% EBITDA 572 542 6% 178 140 27% Interest on borrowings -129 -129 - -34 -31 10% Depreciation and amortisation1 -349 -311 12% -93 -85 10
Slide 8: Financial Position
Financial Position Prudent balance sheet with improved gearing ratios (in US$ million) 31-Dec-16 31-Dec-151 Change Total Assets 8,306 8,036 3% Cash and short-term investments 355 502 -29% Fixed Assets2 3,891 4,071 -4% Total Liabilities 4,210 4,286 -2% Adjusted Net Debt3 1,745 1,908 -9% Net Debt4 2,7
Slide 9: Final Dividend
Final Dividend The Board proposes final dividend distribution of 0.635 Singapore cents per share, subject to approval from shareholders, representing 30% of our underlying profit for FY2016. Cash Dividend 2013 2014 2015 2016 Dividend per share (in S$ cents) 1.100 0.585 0.502 0.635 Total Dividend (in
Slide 10: Segmental Performance
Segmental Performance slide 10
Slide 11: Segmental Results Plantations and Palm Oil Mills
Segmental Results Plantations and Palm Oil Mills Strong recovery in 4Q 2016 with EBITDA expanding by 30% year-on-year and 46% quarter-on-quarter FY 2016 FY 2015 YoY 4Q 2016 4Q 2015 YoY Revenue (US$ million) 1,557 1,503 4% 579 371 56% EBITDA (US$ million) 379 415 -9% 140 108 30% EBITDA margin 24% 28%
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 Age Profile as of 31 Dec 2016 488,252 6% 4% 466,440 485,606 460,336 9% 98,626 102,255 101,219 28,498 97,368 21,812 41,296 367,814 362,968 385,997 384,387 38% 186,3
Slide 13: Segmental Results Palm and Lauric
Segmental Results Palm and Lauric Margin improvement through enhanced integration and operational excellence FY 2016 FY 2015 YoY 4Q 2016 4Q 2015 YoY Revenue (US$ million) 6,262 5,614 12% 1,837 1,169 57% Sales Volume (‘000 tonnes) 8,974 8,764 2% 2,475 2,300 8% EBITDA (US$ million) 181 109 66% 45 26 7
Slide 14: Strong Position Across the Downstream Value Chain
Strong Position Across the Downstream Value Chain Origination of Raw Processing & Product Logistic Destination Market Materials Customisation Excellence Expertise Sourcing with • Processing facilities with new • Golden Stena Weco • Destination sales increasing traceability: technology is the largest
Slide 15: Segmental Results Oilseeds and Others
Segmental Results Oilseeds and Others The performance of our oilseeds and others segments affected by less favourable market environment in China during 4Q 2016 FY 2016 FY 2015 YoY 4Q 2016 4Q 2015 YoY 1Q 2015 4Q 2014 QoQ 1Q 2014 YoY Oilseeds Revenue (US$ million) 753 644 17% 263 176 49% Sales Volume
Slide 16: Strategy and Outlook
Strategy and Outlook slide 16
Slide 17: 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 18: 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 19: 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 by year end In 2016, 15 out of 45 GAR mills achieved full TTP (GAR already knows the source of 90% of its FFB) Support programme for supplier
Slide 20: Appendix
Appendix slide 20
Slide 21: Age Profile
Age Profile The average age of GAR’s plantations is 15 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) 31 December 2016 Nucleus 18,183 35,478 179,704 130,725 21,907 385,997 Pl
Slide 22: 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 22