Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — FY2010 Earnings Presentation
26 slides from Golden Agri-resources's earnings presentation, Feb 28, 2011
Slide 1: Full Year Performance Presentation
Full Year Performance Presentation FY 2010 : year ended 31st December 2010 28 February 2011 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 Financial Highlights 5 Section 3 Plantation Highlights 12 Section 4 Downstream Highlights 16 Section 5 Growth Strategy 19 Section 6 Recent Developments 23 2
Slide 4: Executive Summary
wa) gar ww ZF gar. and food Section 1 Executive Summary
Slide 5: Executive Summary
Executive Summary Year 2010 record earnings driven by outstanding palm products output recovery and strong CPO prices Price (US$/MT) EBITDA (US$ million) Output (‘000 MT) • Outstanding 4Q 2010 results vs 3Q 2010 240 1100 Revenue $1,189 mn 23% 1000 200 EBITDA $237 mn 45% Core Net Profit1 $146 mn 43%
Slide 6: Financial Highlights
Section 2 Financial Highlights
Slide 7: Financial Performance – FY 2010
Financial Performance – FY 2010 US$ million FY 2010 FY 2009 Change Revenue 3,505 2,294 53% Gross Profit 955 509 87% EBITDA 661 401 65% Net Profit attributable to owners of the Company 1,423 607 134% Comprising: Net gain from changes in fair value of biological assets (Net of tax and non-controlling
Slide 8: Financial Summary – 4Q 2010
Financial Summary – 4Q 2010 US$ million 4Q 2010 4Q 20091 YoY 3Q 2010 QoQ Change Change Revenue 1,189 643 85% 965 23% Gross Profit 387 159 143% 225 72% EBITDA 237 129 84% 163 45% Net Profit attributable to owners of the Company 1,169 473 147% 99 1,079% Comprising: • Net gain from changes in fair valu
Slide 9: Segmental Results
Segmental Results Strong contribution from our Indonesia operations supported by China operations (in US$ million) Indonesia Operations China Operations FY 2010 FY 2009 Change FY 2010 FY 2009 Change Revenue 2,800 1,680 67% 705 614 15% Gross Profit 916 487 88% 39 23 72% Gross Profit Margin 33% 29% 4%
Slide 10: Revenue Breakdown
Revenue Breakdown Revenue more than tripled over five years, supported by strong CPO prices and growing production volumes US$ million 4,000 CAGR of 33% 3,505 3,500 2,986 3,000 Others Soybean oil 2,500 2,294 Soybean meal 1,873 2,000 Branded products 1,500 Unbranded CPO-based products 1,130 PK and PK
Slide 11: Financial Position
Financial Position Strong balance sheet position with low gearing (in US$ million) 31-Dec-10 31-Dec-09 Change Total Assets 10,114 7,900 28% Cash and Short-Term Investments 276 353 -22% Trade Receivables and Inventories 825 523 58% Fixed Assets1 8,268 6,460 28% Total Liabilities 3,169 2,367 34% Inter
Slide 12: Dividend
Dividend The Company’s dividend policy is to distribute up to 30% of underlying profit 2006 2007 2008 2009 2010 Cash Dividend Dividend per share (in S$ cents) 0.5151,2 0.9621 0.7691 0.495 0.77 Total Dividend (in S$ million) 53.422 99.76 79.81 60.09 93.47 % to underlying profit 28% 21% 15% 22% 18% Th
Slide 13: Plantation Highlights
Section 3 Plantation Highlights
Slide 14: Plantation Area
Plantation Area GAR is the largest Indonesian plantation company with integrated operations (in hectares) 31 Dec 2010 31 Dec 2009 Change Planted Area 442,470 427,253 3.6% Nucleus 352,124 339,818 3.6% Plasma 90,346 87,435 3.3% Mature Area 363,478 333,957 8.8% Nucleus 281,431 252,586 11.4% Plasma 82,0
Slide 15: Age Profile
Age Profile GAR’s long-term growth is supported by favourable age profile of planted area underpinned by large immature and young plantations Immature Young Prime Old 1 Old 2 Total (in ha) (0-3 years) (4-6 years) (7-18 years) (19-25 years) (>25 years) 31 Dec 2010 Nucleus 70,693 69,800 153,731 53,215
Slide 16: Production Performance
Production Performance 4Q 2010 production recovered strongly and achieved a quarterly record, but full year performance was still lower than last year FY 2010 FY 2009 change 4Q 2010 3Q 2010 change FFB Production (‘000 tonnes) 7,560 7,707 -2% 2,369 2,062 15% Nucleus 5,705 5,716 - 1,795 1,523 18% Plas
Slide 17: Downstream Highlights
Section 4 Downstream Highlights
Slide 18: Downstream – Indonesia Operations
Downstream – Indonesia Operations Consistent expansion of downstream capacity to capture growing production of our plantations Capacity (‘000 tpa) Our Brands 1,400 1,200 1,000 800 Kernel crushing capacity 600 Refinery capacity 400 200 0 2006 2007 2008 2009 2010 • Our prominent cooking oil brands, Fi
Slide 19: Downstream – China Operations
Downstream – China Operations China is one of the largest and fastest growing edible oils consumers Our Brands GAR will strategically expand its presence in China through organic growth and acquisition: Construction of new vegetable oil refinery and soybean crushing facilities Developing distributio
Slide 20: Growth Strategy
wa) gar ww ZF gar. and food Section 5 Growth Strategy
Slide 21: Strategic Priorities
Strategic Priorities Build on core competitive strengths to maximise long-term shareholder returns Expand high-margin • Sustain growth through expansion of planted area upstream business • By way of green field and acquisition as and when opportunities arise • Increase downstream production capabili
Slide 22: Growth Strategy
Growth Strategy Organic Growth Achievement in 2010 Capacity FY 2009 Growth FY 2010 Change Planted area hectares 427,253 15,217 442,470 3.6% Milling tonnes per annum 8,870,000 400,000 9,270,000 4.5% Kernel crushing tonnes per annum 459,000 90,000 549,000 19.6% Refinery in Indonesia tonnes per annum 1
Slide 23: Outlook
Outlook Resilient industry outlook in 2011 supported by solid fundamentals • Robust demand growth of palm oil Strong demand in emerging markets and growing popularity as edible oil in developed countries Increasing demand for substitute and alternative uses such as oleochemicals and biodiesel Limite
Slide 24: Recent Developments
Section 6 Recent Developments 23
Slide 25: Environmental Sustainability
Environmental Sustainability Progress with RSPO Full GAR membership application submitted. To be considered after we submit a time-bound certification plan by 31 Mar 2011 Engaged TFT (The Forest Trust) to assist in RSPO certification process Aim to obtain RSPO certification for all existing units as
Slide 26: 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) 25