Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — Investor Presentation (November 2018)
23 slides from Golden Agri-resources's investor presentation, November 2018
Slide 1: Company Presentation Golden Agri-Resources Ltd
Company Presentation Golden Agri-Resources Ltd November 2018 11
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 Corporate Overview 4 2 Key Competitive Strengths 7 3 Growth Strategy 16 4 Financial Performance 19 33
Slide 4: Corporate Overview
CORPORATE OVERVIEW gar agribusiness and food la ZF
Slide 5: Overview of GAR
OVERVIEW OF GAR • Listed on SGX since 1999 • A leading Indonesian plantation group with integrated operations for the production of palm oil‐based edible oil and fat products • It also has operations in China and India including a deep sea port, soybean crushing plant, and production of refined edib
Slide 6: Leading Indonesian Plantation Group with Integrated Operations
LEADING INDONESIAN PLANTATION GROUP WITH INTEGRATED OPERATIONS Research & Plantation & CPO Milling Basic Processing Processed Development Harvesting Products Products Collaborate Planted area1,2 No of mills with CIRAD CPO Refining Branded & Total 499k ha 46 • Nucleus 396k ha Production No of plants
Slide 7: Key Competitive Strengths
KEY COMPETITIVE STRENGTHS gar agribusiness and food
Slide 8: Leading in Scale with Vertically Integrated Operations
LEADING IN SCALE WITH VERTICALLY INTEGRATED OPERATONS Largest plantation group in Indonesia and second largest globally in terms of planted area ‘000 ha Indonesia Malaysia 600 400 603 499 200 334 341 291 264 210 175 211 136 0 GAR Astra Agro Wilmar Indo Agri First SampoernaSime Darby IOI KLK Felda (i
Slide 9: Management Expertise Delivers High Production Yields
MANAGEMENT EXPERTISE DELIVERS HIGH PRODUCTION YIELDS GAR is one of the lowest cost producers with industry‐leading efficiencies FFB yield per hectare 1 CPO yield per hectare 1,2 4.6 22 4.6 20.5 4.4 (MT/ha) 20 19.7 4.2 3.9 (MT/ha) 4.0 3.9 3.9 18.3 3.8 18 17.5 3.6 3.4 3.2 16 3.2 14.8 3.0 GAR Astra Agr
Slide 10: Unrivalled Technology Platform Enhancing Operational Efficiency
UNRIVALLED TECHNOLOGY PLATFORM ENHANCING OPERATIONAL EFFICIENCY To monitor and manage its widely spread operations efficiently, GAR utilises a state‐ of‐the‐art proprietary information technology system • War Room utilises SAP, GIS and Google Earth applications • Block‐by‐block Performance Analysis
Slide 11: Unrivalled Technology Platform Optimising Production Yields and Minimising Cost
UNRIVALLED TECHNOLOGY PLATFORM OPTIMISING THE PRODUCTION YIELDS AND MINIMISING COST Superior fertiliser cost management through operational control and R&D • Fertiliser program developed with CIRAD1 • Accurate fertiliser plan to optimize benefit especially with more volatile climate conditions • App
Slide 12: Strong Position Across the Downstream Value Chain
STRONG POSITION ACROSS THE DOWNSTREAM VALUE CHAIN Origination of Processing & Logistic Excellence Destination Market Raw Materials Product Customisation Expertise Sourcing with •Broad range of products •Golden Stena is the •Increasing presence in increasing traceability: including Food, largest palm
Slide 13: Strong Commitment to the Environment and Community for Sustainable Palm Oil
STRONG COMMITMENT TO THE ENVIRONMENT AND COMMUNITY FOR SUSTAINABLE PALM OIL Sustainable Practices for Existing Plantations Zero waste policy by recycling of mill wastes (Empty Fruit Bunch and Palm Oil Mill Effluent) Precise dosage in fertiliser application plan to minimise risk of pollution In
Slide 14: Towards Responsible Palm Oil Production
TOWARDS RESPONSIBLE PALM OIL PRODUCTION Progress on Traceability to the Plantation for third‐party suppliers • Full TTP for 49% of the palm supply chain (GAR‐owned mills and third‐ party suppliers) • 52 third‐party mills have been engaged by GAR on TTP with 17 reporting 100% TTP as of Q3 2018 • This
Slide 15: Empowering Communities
EMPOWERING COMMUNITIES The palm oil industry is effective in creating jobs and alleviating poverty Employment and Infrastructure • GAR provides employment for about 170,700 people in Indonesia • 46,300 permanent employees, 55,800 fixed‐term employees and 68,600 smallholders • We promote small and mi
Slide 16: Growth Strategy
GROWTH STRATEGY gar agribusiness and food
Slide 17: Strategic Priorities
STRATEGIC PRIORITIES Build on core competitive strengths and leverage scale to maximise long‐term shareholder returns Breakthrough competitive edge with cutting edge technology To strengthen our position as the world’s leading palm oil plantation company Operational Be the best, Yield Excellence – I
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: Financial Performance
FI NANCI AL PERFORMANCE gar agribusiness and food
Slide 20: Financial Performance
FINANCIAL PERFORMANCE Ytd Sep Ytd Sep (in US$ million) 2017 2016 2018 2017 Revenue 5,515 5,584 7,508 7,209 Gross Profit 745 836 1,097 1,014 Gross Profit Margin 14% 15% 15% 14% Operating Profit 111 194 241 176 Tax (53) (41) (35) 263 Underlying Profit1 79 217 254 186 Net (Loss)/Profit attributable to
Slide 21: Segmental Results
SEGMENTAL RESULTS YTD Sep YTD Sep US$ million 2017 2016 2018 2017 Revenue Plantations and palm oil mills 1,100 1,252 1,673 1,557 Palm and laurics 4,960 4,913 6,579 6,262 Oilseeds 362 471 661 753 Others1 147 147 193 187 Inter-segment eliminations (1,054) (1,199) (1,598) (1,549) Consolidated Revenue 5
Slide 22: Financial Position
FINANCIAL POSITION Strong balance sheet amidst challenging environment US$ million 30‐Sep‐18 31‐Dec‐17 Change Total Assets 8,110 8,138 ‐0.3% Cash and short‐term investments 373 394 ‐5% Fixed Assets1 3,693 3,692 0.04% Total Liabilities 4,157 4,029 3% Adjusted Net Debt2 1,888 1,684 12% Net Debt3 2,744
Slide 23: 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 23 23
Golden Agri-Resources — Investor Presentation (November 2018) on 6ix