Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — FY2018 Earnings Presentation
22 slides from Golden Agri-resources's earnings presentation, Feb 27, 2019
Slide 1: Full Year 2018 Results Presentation
GOLDEN AGRI-RESOURCES LTD Full Year 2018 Results Presentation 27 February 2019 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 Executive Summary 4 2 Financial Highlights 6 3 Segmental Performance 10 4 Strategy and Outlook 14 5 Appendix 20 33
Slide 4: Executive Summary
EXECUTIVE SUMMARY gar agribusiness and food
Slide 5: Downstream segment drives stronger 4Q 2018 EBITDA despite lower CPO prices
EXECUTIVE SUMMARY Downstream segment drives stronger 4Q 2018 EBITDA despite lower CPO prices EBITDA (US$ million) • 4Q 2018 vs 3Q 2018 500 499 Revenue US$1,653 mn 10% 391 EBITDA US$203 mn 53% 400 Underlying Profit1 US$101 mn 166% 300 Palm product output 813,000 MT 11% 184 CPO FOB price US$468/MT 13%
Slide 6: Financial Highlights
gar FINANCIAL HIGHLIGHTS agribusiness and food
Slide 7: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE US$ million FY 2018 FY 2017 YoY 4Q 2018 3Q 2018 QoQ Revenue 7,167 7,508 ‐5% 1,653 1,839 ‐10% Gross Profit 1,007 1,097 ‐8% 262 277 ‐6% EBITDA 573 665 ‐14% 203 132 53% Underlying Profit1 181 254 ‐29% 101 38 166% Net loss from changes in fair value of biological asset
Slide 8: Financial Position
FINANCIAL POSITION Robust balance sheet amidst challenging environment US$ million 31‐Dec‐18 31‐Dec‐17 Change Total Assets 8,546 8,138 5% Cash and short‐term investments 545 394 38% Fixed assets1 3,716 3,692 1% Total Liabilities 4,236 4,029 5% Net Debt2 1,734 1,684 3% Total debt3 3,010 2,992 1% Cash
Slide 9: Final Dividend
FINAL DIVIDEND The Board proposes final dividend distribution of 0.58 Singapore cents per share, subject to approval from shareholders, representing 30% of our underlying profit for FY 2018 Cash Dividend 2015 2016 2017 2018 Dividend per share (in S$ cents) 0.502 0.635 0.809 0.580 Total Dividend (in
Slide 10: Segmental Performance
SEGMENTAL PERFORMANCE gar agribusiness and food
Slide 11: Segmental Results: Plantations and Palm Oil Mills
SEGMENTAL RESULTS Plantations and Palm Oil Mills FY 2018 plantation production reached a historic record high FY 2018 FY 2017 YoY 4Q 2018 3Q 2018 QoQ Revenue (US$ million) 1,451 1,673 ‐13% 351 416 ‐16% EBITDA (US$ million) 391 499 ‐22% 86 108 ‐21% EBITDA margin 27% 30% ‐3% 24% 26% ‐2% CPO FOB Price
Slide 12: Plantation Area
PLANTATION AREA Focus on productivity growth through replanting and operational excellence Mature Area ‐ ha Planted Area ‐ ha Age Profile as of 31 Dec 2018 6% 13% 6% 467,261 476,965 498,395 502,847 31,134 102,852 62,562 101,214 103,480 101,436 31,654 365,825 375,751 394,915 399,995 34% 168,660 204,3
Slide 13: Segmental Results: Palm, Laurics and Others
SEGMENTAL RESULTS Palm, Laurics and Others Increasing benefits from integrated business model and enhanced customer relationships in destination markets FY 2018 FY 2017 YoY 4Q 2018 3Q 2018 QoQ Revenue (US$ million) 7,102 7,433 ‐5% 1,633 1,820 ‐10% Sales Volume (‘000 tonnes) 10,210 10,214 ‐ 2,588 2,7
Slide 14: Strategy and Outlook
STRATEGY AND OUTLOOK gar agribusiness and food
Slide 15: Building a Resilient Business: Innovation and Sustainability
BUILDING A RESILIENT BUSINESS Innovation and Sustainability Driving holistic transformation across the value chain for long‐term shareholders return Focus TECHNOLOGY CUSTOMER SUSTAINABILITY Goals Digital leapfrog to achieve Sustainable profit growth Responsible palm oil leadership in productivity fr
Slide 16: 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 17: Indonesia Biodiesel
INDONESIA BIODIESEL Indonesia growing biodiesel mixture mandate is a major catalyst to the industry • Global feedstock for biodiesel is estimated to have grown by 10% to approx. 40 million MT in 2018, accounting for 21% of vegetable oil consumption • Palm oil is the largest feedstock use for biodies
Slide 18: Towards Responsible Palm Oil Production
TOWARDS RESPONSIBLE PALM OIL PRODUCTION Progress on Traceability to the Plantation • Full TTP for 62% of the palm supply chain • 54 third‐party mills have reported full TTP with over 150 taking part in the TTP exercise Supporting Smallholders • To date, GAR has helped some 1,400 independent smallhol
Slide 19: GAR Awards & Sustainability Ratings
GAR AWARDS & SUSTAINABILITY RATINGS GAR received several awards in 2018 in the area of corporate, sustainability and governance • Winner: ASEAN Business Awards in the Priority Integration Sector ‐ Agribusiness • Winner: Singapore APEX Corporate Sustainability Award • Asia’s Best Supply Chain Reporti
Slide 20: Appendix
APPENDIX gar agribusiness and food
Slide 21: Age Profile
AGE PROFILE Immature and younger estates use newer‐generation higher‐yielding planting materials that will further boost production growth in the future Immature Young Prime 1 Prime 2 Old Total hectares (0‐3 years) (4‐6 years) (7‐18 years) (19‐25 years) (>25 years) 31 December 2018 Nucleus 29,090 27
Slide 22: 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 22 22