Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — H1 2019 Earnings Presentation
19 slides from Golden Agri-resources's earnings presentation, Aug 15, 2019
Slide 1: Interim Performance Presentation
GOLDEN AGRI-RESOURCES LTD Interim Performance Presentation Second quarter and half year ended 30 June 2019 15 August 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 9 4 Strategy and Outlook 13 5 Appendix 17 33
Slide 4: Executive Summary
EXECUTIVE SUMMARY gar agribusiness and food
Slide 5: Downstream business mitigates low CPO market prices
EXECUTIVE SUMMARY Downstream business mitigates low CPO market prices EBITDA (US$ million) • 1H 2019 vs 1H 2018 200 197 Revenue US$3,167 mn 14% EBITDA US$198 mn 17% 150 Underlying loss1 US$15 mn n.m Palm product output 1.29 mn MT 2% 102 100 CPO FOB price US$496/MT 22% 97 100 • 2Q 2019 vs 2Q 2018 50
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS gar agribusiness and food
Slide 7: Financial Performance
FINANCIAL PERFORMANCE US$ million 1H 2019 1H 2018 YoY 2Q 2019 2Q 2018 YoY Revenue 3,167 3,676 -14% 1,549 1,860 -17% Gross Profit 345 468 -26% 152 220 -31% EBITDA 198 238 -17% 77 117 -34% Underlying Profit/Loss1 -15 41 n.m -27 17 n.m Net loss from changes in fair value of biological assets2 -2 -12 -8
Slide 8: Financial Position
FINANCIAL POSITION US$ million 30-Jun-19 31-Dec-18 Change Total Assets 8,543 8,546 -0.03% Cash and short-term investments 472 545 -13% Fixed assets1 3,723 3,716 0.2% Total Liabilities 4,298 4,236 1% Net Debt2 2,001 1,734 15% Total debt3 3,060 3,010 2% Cash, short-term investments and liquid working
Slide 9: Segmental Performance
SEGMENTAL PERFORMANCE gar agribusiness and food Mo w aj IR
Slide 10: 1H 2019 EBITDA margin impacted by lower CPO prices
SEGMENTAL RESULTS Plantations and Palm Oil Mills 1H 2019 EBITDA margin impacted by lower CPO prices 1H 2019 1H 2018 YoY 2Q 2019 2Q 2018 YoY Revenue (US$ million) 574 684 -16% 266 341 -22% EBITDA (US$ million) 97 197 -51% 36 102 -65% EBITDA margin 17% 29% -12% 14% 30% -16% CPO FOB Price (US$/MT) 496
Slide 11: Focus on productivity growth through replanting and technological innovation
PLANTATION AREA Focus on productivity growth through replanting and technological innovation Mature Area - ha Planted Area - ha Age Profile as of 30 Jun 2019 5% 473,675 499,235 498,395 15% 467,261 6% 102,042 104,342 103,480 25,560 101,436 73,383 30,808 371,633 365,825 394,893 394,915 33% 163,037 30-
Slide 12: The integrated business model has helped GAR to weather low CPO prices
SEGMENTAL RESULTS Palm, Laurics and Others The integrated business model has helped GAR to weather low CPO prices 1H 2019 1H 2018 YoY 2Q 2019 2Q 2018 YoY Revenue (US$ million) 3,151 3,649 -14% 1,542 1,844 -16% Sales Volume (‘000 tonnes) 5,370 4,898 10% 2,650 2,508 6% EBITDA (US$ million) 100 40 149%
Slide 13: Strategy and Outlook
STRATEGY AND OUTLOOK (Z-\ gar
Slide 14: Growth Strategy and Outlook
GROWTH STRATEGY AND OUTLOOK GAR continues to enhance its integrated operation capabilities to optimise profit opportunities and cash flow generation across the value chain Upstream • Focus on replanting with higher-yielding seeds to sustain production growth • Continued efforts in yield improvement,
Slide 15: Indonesia Biodiesel
INDONESIA BIODIESEL Indonesia growing biodiesel mixture mandate is a major catalyst to the industry • Global feedstock for biodiesel grew by 14% to 41 million MT in 2018 and expected to further expand by 9% in 2019 • Indonesia implemented a subsidised B20 programme in 2016 with full implementation s
Slide 16: Towards Responsible Palm Oil Production
TOWARDS RESPONSIBLE PALM OIL PRODUCTION Progress on Traceability to the Plantation • Full TTP for over 60% of the palm supply chain • 58 third-party mills have reported full TTP with over 180 taking part in the TTP exercise GAR in the FTSE4Good index for the 2nd year • Following the latest annual as
Slide 17: Appendix
APPENDIX gar agribusiness and food
Slide 18: 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) 30 June 2019 Nucleus 23,260 29,139
Slide 19: 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 19 19
Golden Agri-Resources — H1 2019 Earnings Presentation on 6ix