Golden Agri-resources Ltd · SGX:E5H

Golden Agri-resources — Q2 2016 Earnings Presentation

21 slides from Golden Agri-resources's earnings presentation, Aug 12, 2016

  1. Slide 1: Interim Performance Presentation, Second quarter and half-year 2016

    Golden Agri-Resources Ltd Interim Performance Presentation Second quarter and half-year ended 30th June 2016 12 August 2016

  2. 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

  3. Slide 3: Contents

    Contents 1 Executive Summary 4 2 Financial Highlights 6 3 Segmental Performance 9 4 Strategy and Outlook 15 5 Appendix 19 slide 3

  4. Slide 4: Executive Summary

    agribusiness and food gar > _ © = = S Y—) o > = S rz) co) x< Lu

  5. Slide 5: Executive Summary

    Executive Summary 2Q 2016 performance impacted by lower plantation output following severe 2015 El Nino EBITDA (US$ million) • Ytd Jun 2016 vs YTD Jun 2015 225 211 Revenue US$3,235 mn 4% 200 EBITDA US$228 mn 17% 175 149 Net Profit1 US$134 mn 1,754% 150 Palm product output 1.01 mn MT 25% 125 110 CPO

  6. Slide 6: Financial Highlights

    Financial Highlights slide 6

  7. Slide 7: Consolidated Financial Performance

    Consolidated Financial Performance US$ million 1H 2016 1H 2015 YoY 2Q 2016 2Q 2015 YoY Revenue 3,235 3,384 -4% 1,742 1,831 -5% Gross Profit1 426 458 -7% 163 255 -36% EBITDA 228 273 -17% 86 145 -41% Interest on borrowings -63 -63 - -32 -32 - Depreciation and amortisation1 -174 -149 17% -89 -76 17% Fo

  8. Slide 8: Financial Position

    Financial Position Gearing remains prudent after the adoption of amended IAS 16 and IAS 41 starting 2016 (in US$ million) 30-Jun-16 31-Dec-151 Change Total Assets 8,274 8,036 3.0% Cash and short-term investments 388 502 -22.9% Fixed Assets2 3,994 4,071 -1.9% Total Liabilities 4,445 4,286 3.7% Adjust

  9. Slide 9: Segmental Performance

    Segmental Performance slide 9

  10. Slide 10: Segmental Results: Plantations and Palm Oil Mills

    Segmental Results Plantations and Palm Oil Mills Second quarter results impacted by low production 1H 2016 1H 2015 YoY 2Q 2016 2Q 2015 YoY Revenue (US$ million) 599 773 -23% 296 432 -32% EBITDA (US$ million) 149 211 -29% 73 110 -34% EBITDA margin 25% 27% -2% 25% 26% -1% FFB Production (‘000 tonnes)

  11. Slide 11: 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 30 Jun 2016 483,075 485,606 6% 3% 467,440 460,336 9% 31,499 98,028 101,221 101,219 15,635 97,368 41,455 39% 369,412 362,968 381,854 384,387 207,5

  12. Slide 12: Segmental Results: Palm and Lauric

    Segmental Results Palm and Lauric Continued focus on bottom line through enhanced integration and operational excellence 1H 2016 1H 2015 YoY 2Q 2016 2Q 2015 YoY Revenue (US$ million) 2,799 3,037 -8% 1,537 1,637 -6% Sales Volume (‘000 tonnes) 4,272 4,359 -2% 2,179 2,326 -6% EBITDA (US$ million) 75 55

  13. Slide 13: Strong Position Across the Downstream Value Chain

    Strong Position Across the Downstream Value Chain Sourcing of Product Sales and raw materials Processing customisation distribution Over 4 million New biodiesel plant is in Sales of palm based Destination sales tonnes of palm operation with capacity refined products contributed 75% to based products

  14. Slide 14: Segmental Results: Oilseeds and Others

    Segmental Results Oilseeds and Others Prudent management minimized impact from market volatility 1H 2016 1H 2015 YoY 2Q 2016 2Q 2015 YoY 1Q 2015 4Q 2014 QoQ 1Q 2014 YoY Oilseeds Revenue (US$ million) 347 319 9% 172 184 -7% Sales Volume (‘000 tonnes) 697 612 14% 331 362 -9% EBITDA (US$ million) 2.8 5

  15. Slide 15: Strategy and Outlook

    Strategy and Outlook slide 15

  16. Slide 16: 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 – Excellence – best-in-class Improvement – mechanisation Be the best,

  17. Slide 17: 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 • Focusing on replanting with higher-yielding seeds to sustain production growth • Cont

  18. Slide 18: Towards Sustainable Palm Oil Production

    Towards Sustainable Palm Oil Production As a leading palm oil company, we continue to deepen our sustainability implementation Progress on fully traceable palm oil - In May 2016, GAR kicked off pilot project on Traceabilty to the Plantation (TTP) at one of its mills - GAR is working with 489 mills t

  19. Slide 19: Appendix

    Appendix 4) gar | agribusiness and food

  20. Slide 20: Age Profile

    Age Profile The average age of GAR’s plantations is 16 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) 30 June 2016 Nucleus 12,442 35,673 177,554 131,277 24,908 381,854 Plasma

  21. Slide 21: 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 21

Golden Agri-Resources — Q2 2016 Earnings Presentation on 6ix