Olam Group Limited · SGX:VC2
Olam — Olam International — 9M 2017 Earnings Presentation
26 slides from Olam's earnings presentation, Nov 15, 2017
Slide 1: 9M 2017 Results Briefing
9M 2017 Results Briefing 15 November 2017
Slide 2: Presenters
Presenters Sunny Verghese A. Shekhar N. Muthukumar Co-Founder Executive Director President and Group CEO and Group COO and Group CFO Olam International Limited Results for the Nine Months ended 30 September 2017 | 15 November 2017 2
Slide 3: Notice
Notice This presentation should be read in conjunction with Olam International Limited’s Financial Statements for the Third Quarter (“Q3 2017”) and Nine Months ended September 30, 2017 (“9M 2017”) and Management Discussion and Analysis lodged on SGXNet on November 15, 2017. Olam International Limite
Slide 4: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements This presentation may contain statements regarding the business of Olam International Limited and its subsidiaries (‘Group’) that are of a forward-looking nature and are therefore based on management’s assumptions about future developments. Such forward
Slide 5: Agenda
Agenda • 9M 2017 highlights • Segmental review • Key takeaways
Slide 6: 9M 2017 highlights
9M 2017 “ ww c= ighlig h
Slide 7: 9M 2017 results at a glance
9M 2017 results At a glance Volume EBITDA 14,739 MT S$1,015 M +44.4% +18.9% PATMI Operational PATMI S$316 M S$322 M +26.7% +23.1% Olam International Limited Results for the Nine Months ended 30 September 2017 | 15 November 2017 7
Slide 8: Volume growth from all segments
Volume growth from all segments Led by volumes in Food Staples & Packaged Foods Volume by segment, '000 MT +44.4% 3,960 246 14,739 10,206 107 221 9M 2016 Edible Nuts, Confectionery Food Staples and Industrial Raw 9M 2017 Spices and and Beverage Packaged Foods Materials, Ag Vegetable Ingredients Logi
Slide 9: EBITDA grew 18.9%
EBITDA grew 18.9% EBITDA by segment, S$ million +18.9% 22 1,015 66 -4 95 -17 854 9M 2016 Edible Nuts, Confectionery Food Staples Industrial Raw Commodity 9M 2017 Spices and and Beverage and Packaged Materials, Ag Financial Vegetable Ingredients Foods Logistics & Services (CFS) Ingredients Infrastruc
Slide 10: PATMI grew 26.7%
PATMI grew 26.7% Operational PATMI grew 23.1% PATMI and Operational PATMI, S$ Million 26.7% 161 -40 14 6 7 316 249 -82 9M 2016 EBITDA^ Depreciation Net Finance Taxation^ Exceptional Non- 9M 2017 & costs^ items controlling amortisation intrest Operational PATMI (S$ M) 261 23.1% 322 ^ Excludes excepti
Slide 11: 7.4% increase in invested capital
7.4% increase in invested capital SGD Million • Fixed Capital increased with continued 7.4% committed investments in upstream and 16,649 15,942 midstream assets 14,375 14,839 11,561 8,853 7,924 • Working Capital remained flat despite the 7,653 7,967 year-on-year volume (+44.4%) and revenue 6,017 inc
Slide 12: Net gearing reduced
Net gearing reduced Net and adjusted debt / equity (basic) • Reduction due to lower net debt compared with end-Dec 2016 1.99 1.87 1.82 • Net gearing slightly down from end-Sep 2016 0.79 0.73 0.80 • Post Sep 30, 2017, additional warrants have been exercised and converted into shares, increasing equit
Slide 13: FCFE improved by S$1.2 B
FCFE improved by S$1.2 B SGD Million +1,179 234 713 891 -81 -8 143 -466 9M 2016 Operating Changes Tax paid Capex/ Net interest 9M 2017 Cash flow in Working Investments paid (before Capital Interest & Tax) FCFF (S$ M) -151 +1,260 1,109 Olam International Limited Results for the Nine Months ended 30 S
Slide 14: Available liquidity
Available liquidity Sufficient to cover all repayment and capex obligations Total borrowings and available liquidity, S$ Million as at 30 September 2017 +3,808 8,446 16,016 12,208 Short Term 1,167 4,299 4,693 Long Term 1,710 7,909 Cash and RMI* Secured Unutilised Available Liquidity Total Borrowings
Slide 15: Segmental review
Segmental review
Slide 16: Edible Nuts, Spices & Vegetable Ingredients
Edible Nuts, Spices & Vegetable Ingredients EBITDA, S$ Million Invested capital, S$ Million +38.9% -6.1% 394 3,463 3,643 361 3,364 3,241 332 339 3,043 1,415 1,421 244 1,587 1,299 1,057 1,777 2,048 2,222 1,942 1,986 2014 2015 2016 9M 2016 9M 2017 Dec’14 Dec’15 Dec’16 Sep’16 Sep’17 restated restated r
Slide 17: Confectionery & Beverage Ingredients
Confectionery & Beverage Ingredients EBITDA, S$ Million Invested capital, S$ Million 0.4% 407 5,681 6,110 6,057 6,082 -6.5% 276 284 266 249 3,247 4,330 4,569 4,668 4,546 2,745 1,351 1,541 1,389 1,536 502 2014 2015 2016 9M 2016 9M 2017 Dec’14 Dec’15 Dec’16 Sep’16 Sep’17 restated restated restated res
Slide 18: Food Staples & Packaged Foods
Food Staples & Packaged Foods EBITDA, S$ Million Invested capital, S$ Million 44.6% 29.1% 330 5,031 295 291 4,522 226 3,478 1,558 212 3,075 3,231 1,498 709 915 857 3,024 3,473 2,366 2,316 2,621 2014 2015 2016 9M 2016 9M 2017 Dec’14 Dec’15 Dec’16 Sep’16 Sep’17 restated restated restated restated Work
Slide 19: Industrial Raw Materials, Ag Logistics & Infrastructure
Industrial Raw Materials, Ag Logistics & Infrastructure EBITDA, S$ Million Invested capital, S$ Million -13.5% 216 2,221 185 18.9% 1,872 1,918 1,958 1,693 135 139 1,213 117 974 912 1,039 671 898 1,006 1,008 919 1,022 2014 2015 2016 9M 2016 9M 2017 Dec’14 Dec’15 Dec’16 Sep’16 Sep’17 restated restated
Slide 20: Key takeaways
Key takeaways
Slide 21: Key takeaways
Key takeaways • Significantly improved financial and operating performance • Delivered strong free cash flow • Strengthened balance sheet and liquidity position to pursue profitable growth • Addressing underperforming businesses and ensuring gestating assets reach full potential Olam International L
Slide 22: Appendix
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Slide 23: P&L statement
P&L statement S$ million 9M 2017 9M 2016 % Change Volume ('000 MT) 14,738.6 10,205.5 44.4 Revenue 19,037.3 14,480.7 31.5 Net gain/(loss) in fair value of biological assets (1.1) (3.7) (70.8) EBITDA^ 1,015.1 853.9 18.9 Depreciation & amortisation (287.1) (246.8) 16.3 Net Finance costs^ (373.5) (291.6
Slide 24: Balance sheet
Balance sheet Change Change S$ million 30-Sep-17 31-Dec-16 30-Sep-16 vs Dec 16 vs Sep 16 Uses of Capital Fixed Capital 8,536.9 8,169.5 367.4 6,660.8 1,876.1 Working Capital 7,576.9 8,517.7 (940.8) 8,334.2 (757.3) Cash 1,709.5 2,144.0 (434.5) 2,223.1 (513.6) Others 244.5 473.5 (229.0) 805.6 (561.1) T
Slide 25: Cash flow statement
Cash flow statement 2015 2014 S$ million 9M 2017 9M 2016 YoY 2016 Restated Restated Operating Cash flow (before Interest & Tax) 1,007.7 865.1 142.6 1,243.5 1,150.8 1,148.3 Changes in Working Capital 838.2 (52.5) 890.7 (227.7) (995.9) (766.2) Net Operating Cash Flow 1,845.9 812.6 1,033.3 1,015.8 154.
Slide 26: 9M 2017 Results Briefing
9M 2017 Results Briefing olamgroup.com/investor-relations/ ir@olamnet.com