Slide 1: Interim Performance Presentation H1 2007
Interim Performance Presentation H1 2007 : half year ended 30th June 2007 15th August 2007 0 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 Performance 5 Section 3 Operational Performance 10 Section 4 Sales Highlights 15 Section 5 Growth Strategy 18 Section 6 Recent Developments 21 2 2
Slide 4: Executive Summary
‘om gar WS) g ZF agribusiness and food fi} es lax Section 1 Executive Summary
Slide 5: Executive Summary
Executive Summary H1 2007 vs. H1 2006 66% Average CPO Price (FOB Belawan) : US$ 622 per ton Revenue : US$ 682 mn 27% vs 26% Gross Margin : 34.9% 81% EBITDA : US$ 211 mn EBITDA Margin : 30.9% vs 22% 110% Net Profit 1 : US$ 447 mn Note: 4 1. Attributable to the equity holders. 4
Slide 6: Financial Performance
Section 2 Financial Performance
Slide 7: Strong Growth in Revenue and Income
Strong Growth in Revenue and Income Strong revenue growth Improving net income 1,200 1,890 2000 500 1,795 1,667 1,130 471 1,000 400 447 1600 CAGR: 168% (’04 – ’06) (US$ mn) 800 819 300 In 000 tons (US$ mn) 760 1200 983 600 859 200 233 213 800 400 535 682 100 400 200 65 0 0 0 2004 2005 1 2006 2 H1'06
Slide 8: H1 2007 Financial Results
H1 2007 Financial Results H1 H1 % (in US$ mn) 2006 1 2007 increase Revenue 534.9 681.8 27.4% Gross profit 139.2 238.0 71.0% Gross profit margin 26.0% 34.9% 34.2% Net gain from biological assets 262.0 430.7 64.4% Operating income 352.5 612.4 73.7% EBITDA 116.7 210.8 80.6% EBITDA margin 21.8% 30.9% 41
Slide 9: H1 2007 Segmental Results
H1 2007 Segmental Results (in US$ mn) Indonesia Operation China Operation H1 2006 H1 2007 % increase H1 2006 H1 2007 % increase/ (decrease) Revenue 372.0 511.9 37.6% 162.9 169.8 4.2% Gross Profit 124.0 222.9 79.8% 15.2 15.1 (0.5%) Gross Profit Margin 33.3% 43.5% 30.6% 9.3% 8.9% (4.3%) EBITDA 104.7 1
Slide 10: Financial Position
Financial Position Continuous growth in total assets with a low gearing ratio 31 Dec 30 Jun % increase/ (in US$ mn) 2006 1 2007 (decrease) Total Assets 2,985.4 3,935.0 31.8% Cash and Short-Term Investments 134.0 229.7 71.4% Total Liabilities 1,064.1 1,185.1 11.4% Interest Bearing Debts 477.4 398.5 (
Slide 11: Operational Performance
Section 3 Operational Performance
Slide 12: Plantations Area
Plantations Area GAR is the largest Indonesian Plantations Group with integrated operations (in ha) 31 Dec 30 Jun 30 Jun 30 Jun ’06 – 30 Jun ’07 2006 2006 2007 % increase Planted Area 306,850 296,747 345,715 16.5% Nucleus 226,184 216,352 264,873 22.4% Plasma 80,666 80,395 80,842 0.6% Mature Area 271
Slide 13: Production Performance
Production Performance GAR is one of the largest and most efficient producer of palm oil based products in the world FFB Production Palm Products Production (000’Tons) (000’Tons) (Ton/Ha) 7,000 2,000 21.43 22.13 25 6,000 1,750 20.23 1,595 1,624 18.37 5,000 1,463 315 337 20 1,500 299 1,203 4,000 1,25
Slide 14: Historical FFB Production Trend
Historical FFB Production Trend Drought Recovery Normal condition condition Period 1800 1,699 1,624 1,554 1,567 1600 1,518 1,462 1,392 1,348 1,380 1400 1,225 Jun 1200 In Thousand Ton 525 1000 800 May 522 600 400 Apr 200 471 0 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2
Slide 15: H1 2007 Production Highlights
H1 2007 Production Highlights H1 H1 % 2006 2007 decrease FFB Production (tons) 3,085,931 2,898,471 (6.1%) FFB Yield (ton/ha) 11.2 9.9 (11.6%) Extraction Rate (%) OER 23.26% 23.29% KER 4.98% 5.18% Palm Products Production (tons) 982,953 858,642 (12.6%) CPO 809,730 702,334 (13.3%) PK 173,223 156,308 (
Slide 16: Sales Highlights
‘om gar VS ZF Gal and food = ra < Section 4 Sales Highlights
Slide 17: Revenue Contribution
Revenue Contribution Revenue contribution Revenue contribution ~ By Products PK Others Soybean Meal 2% 1% China Indonesia 9% Local Export 25% 36% Soybean Oil 8% Branded CPO Products 38% 10% Indonesia Unbranded Local Palm Product 39% 32% Indonesia Operation ~ By Products China Operation ~ By Products
Slide 18: Sales Volume
Sales Volume H1 H1 % 2006 2007 increase/ (decrease) Indonesia Operation CPO 499,000 482,000 (3.4%) PK 68,000 52,000 (23.5%) Refined Products 447,000 436,000 (2.5%) Branded Cooking Oil 40,000 46,000 15.0% Margarine 21,000 30,000 42.9% Unbranded 386,000 360,000 (6.7%) China Operation Branded Cooking O
Slide 19: Growth Strategy
‘om gar VS ZF Gal and food = ra < Section 5 Growth Strategy
Slide 20: Growth Strategy
Growth Strategy Commitment to sound business strategies and continuous operational excellence will enable GAR to sustain growth and profitability Continued Growth and Profitability Food Industrial Bio-Fuel Strong Plantation Foundation Largest in the world with 346,000 ha planted Future expansion of
Slide 21: H1 2007 Growth Achievements and Targets
H1 2007 Growth Achievements and Targets Plantation Target additional planted area of 40,000 ha for FY 2007 Achieved additional planted area of 39,000 ha during H1 2007 - 11,000 ha of new planting - 28,000 ha of acquired plantation Downstream Completed new specialty fat factory in Ningbo, China with
Slide 22: Recent Developments
Section 6 Recent Developments
Slide 23: Recent Developments
Recent Developments April 2007: Placement of New Shares 325,300,000 new shares (15% of pre-placement share capital) Total net proceeds approximately S$ 772 million Use of proceeds: finance capital expenditure and general corporate purposes Up to 13 July 2007, the amount of proceeds which have been u
Slide 24: Recent Developments
Recent Developments July 2007: Proposed Share Split Share split of each ordinary share of par value US$ 0.10 each into two (2) ordinary share of par value US$ 0.05 each This will be expected to increase trading liquidity and broaden the shareholders base Received approval in principle from SGX for t
Slide 25: Plan to Issue Convertible Bond
Plan to Issue Convertible Bond Issue : Bonds convertible into new ordinary shares of US$ 0.10 each Total size : Approximately US$ 400 million Use of proceeds : To finance acquisition of SMART’s shares, expansion of plantations and general corporate purposes Joint Coordinators : Citigroup Global Mark
Slide 26: Contact Us
Contact Us If you need further information, please contact: Golden Agri-Resources Ltd c/o 3 Shenton Way #17-03 Shenton House Singapore 068805 Telephone : +65 62207720 Facsimile : +65 62207020 Contact Person : Rafael B. Concepcion, Jr. (rafaelc@goldenagri.com.sg) Suwandy Chen (swd@goldenagri.com.sg)