Wilmar International Limited · SGX:F34
Wilmar International — Q3 2007 Earnings Presentation
16 slides from Wilmar International's earnings presentation, Nov 14, 2007
Slide 1: Wilmar International Limited 3Q07 Results Briefing
WILMAR INTERNATIONAL LIMITED 3Q07 RESULTS BRIEFING 14 NOVEMBER 2007 1 IMPORTANT NOTICE Information in this presentation 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 based on cu
Slide 2: Presentation Overview
PRESENTATION OVERVIEW • Introduction • 3Q07 Financial Highlights • Questions & Answers 3 INTRODUCTION Presenter: Mr KUOK Khoon Hong 4 2
Slide 3: Wilmar International
Wilmar International • Asia’s Leading Agribusiness Group after June 07 merger with Kuok Group’s plantation, edible oils, grains & related businesses and acquisition of parent company’s edible oils, oilseeds, grains & related businesses. • Headquartered in Singapore and listed on SGX • Growth strateg
Slide 4: Good 3Q Results
Good 3Q Results Net Profit In US$ FY2007 FY2006 million Reported Proforma Pre-merger Restated (previously reported) 3Q 195.1 195.1 36.3 71.0 9M 346.4 433.0^ 68.3 172.0 • Good performance due to: - higher crude palm oil prices - synergies of merger resulting in savings in merchandising, manufacturing
Slide 5: Leadership Position and Future Strategy
Leadership Position • One of the largest plantation companies in Indonesia / Malaysia, with planted hectarage 230,000,000 ha (including smallholders 33,000 ha) to date • Largest global processor and merchandiser of palm & lauric oils • Largest oilseeds crusher, edible oils refiner, manufacturer and
Slide 6: Merger & Restructuring: Shareholding & Legal Completion
3Q07 FINANCIAL HIGHLIGHTS Presenter: Mr CHUA Phuay Hee 11 Merger & Restructuring Shareholding & Legal Completion 19.6% Kuok Group WHPL ADM Public 31.2% 48.5% 6.7% 13.6% 65.8% 100.0% 100% 100% 34.2% PGEO PPBOP KOG IPT Assets Pre-merger Wilmar Legal completion 8 May 07 24 May 07* 28 June 07 28 June 07
Slide 7: Merger & Restructuring – Accounting Treatments
Result 3Q07 3Q06* U 3Q Profit US$195 m US$36 m 442% 9M Profit US$346 m US$68 m 409% Shares 6.4 b 2.5 b 152% *Pre-merger before restatement 13 Merger & Restructuring – Accounting Treatments Pooling of Interest Purchase Method Method Financial Pre-Merger PGEO PPBOP KOG IPT Qtr Wilmar 1Q06 Restated 2Q0
Slide 8: Revenue and Net Profit
Revenue Revenue Volume US$’million ‘million MT 13.5 • 3Q07 - up 183.5% 12,500 14 12 • 9M07 - up 106.9% 10.6 10,000 9,966 10 • Volume growth up 27.4% 7,500 8 6.2 • Drivers 6 5,000 – Strong demand 5,001 4,817 3.8 from economic 4 growth 2,500 – Higher volume 2 – High CPO 1,764 prices 0 0 – Kuok Group 3
Slide 9: Four Business Segments
Four Business Segments • Merchandising and Processing – Palm and Laurics (same as pre-merger, but now extends beyond Indonesia and Malaysia) – Oilseeds and Grains (replaces Soyabean and Soyabean Meal sub-segment) • Consumer Products (new segment) • Plantation and Palm Oil Mills (now extends to Malay
Slide 10: Profit Before Tax by Business Segment
Profit Before Tax by Business Segment US$' million 3Q06 3Q07 9M06 9M07 Merchandising and 66.4 143.0 174.7 295.2 Processing Palm & laurics 36.9 68.4 61.2 149.9 Oilseeds & grains 29.5 74.6 113.5 145.3 Consumer Products 4.1 51.3 3.5 58.7 Plantation & Palm Oil Mills 14.5 63.8 31.5 99.9 Others (0.6) 5.2
Slide 11: Merchandising & Processing - Palm & Laurics; Oilseeds and Grains
Merchandising & Processing - Palm & Laurics 3Q06 3Q07 9M06 9M07 Revenue (US$ million) 1,089 3,618 2,675 6,875 Sales volume (‘000 MT) 2,242 3,370 5,767 7,380 Production volume (‘000 MT) 1,547 3,066 4,296 6,120 Profit before tax (US$ million) 36.9 68.4 61.2 149.9 Profit before tax per MT (US$/MT)* 16.
Slide 12: Consumer Products and Plantation Statistics
Merchandising & Processing - Consumer Products 3Q06 3Q07 9M06 9M07 Revenue (US$ million) 71 1,201 165 1,379 Sales volume (‘000 MT) 90 803 233 1,062 Profit before tax (US$ million) 4.1 51.3 3.5 58.7 Profit before tax per MT (US$/MT) 45.07 63.88 14.91 55.30 • Profits were boosted by cost savings from
Slide 13: Plantation Statistics and Age Profile
Plantation Statistics • Increased FFB production due to : – bigger mature area harvested – full contribution from PPBOP • Yield for 3Q07 fairly constant • Decline in 9M07 yield to 15.2MT/ ha (9M06 : 16.6MT/ ha) due to – effect of drought in South Sumatra earlier this year – lower yield of young tree
Slide 14: Plantation Age Profile by Country; Balance Sheet and Other Highlights
Plantation Age Profile – By Country 30 Sep 07 (ha) Average Age of Palm Indonesia Up to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Land rights 59,313 14,728 37,783 14,871 8,098 134,793 Plasma 625 1,088 21,610 9,649 0 32,972 Programme Total 59,938 15,816 59,393 24,520 8,098 167,765 % of plante
Slide 15: Goodwill and Merger Reserve; Result
Goodwill and Merger Reserve US$ million Provisional goodwill arising from KG acquisition 4,097 PPBOP 1,795 PGEO 500 KOG 1,801 Merger reserve arising from IPT merger 842 Goodwill amount is still provisional pending fair value adjustment which is currently under review. Impairment test at year end. 29
Slide 16: Questions & Answers
QUESTIONS & ANSWERS 31 16