Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — Q3 2018 Earnings Presentation
20 slides from Golden Agri-resources's earnings presentation, Nov 13, 2018
Slide 1: Interim Performance Presentation Third quarter ended 30th September 2018
Interim Performance Presentation Third quarter ended 30th September 2018 Golden Agri-Resources Ltd 13 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 Executive Summary 4 2 Financial Highlights 6 3 Segmental Performance 9 4 Strategy and Outlook 14 5 Appendix 18 33
Slide 4: Executive Summary
EXECUTI VE SUMMARY gar agribusiness and food la ZF
Slide 5: Executive Summary: 3Q 2018 performance improved quarter-on-quarter
EXECUTIVE SUMMARY 3Q 2018 performance improved quarter‐on‐quarter despite further decline in CPO prices EBITDA1 (US$ million) 378 • 3Q 2018 vs 2Q 2018 390 Revenue US$1,839 mn 1% 305 290 EBITDA US$132 mn 13% Underlying Profit1 US$38 mn 129% 190 Palm product output 917,000 MT 30% 122 CPO FOB price US$
Slide 6: Financial Highlights
FI NANCI AL HIGHLIGHTS gar agribusiness and food
Slide 7: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE US$ million 9M 2018 9M 2017 YoY 3Q 2018 2Q 2018 QoQ Revenue 5,515 5,584 ‐1% 1,839 1,860 ‐1% Gross Profit 745 836 ‐11% 277 220 26% EBITDA 370 508 ‐27% 132 117 13% Underlying Profit1 79 217 ‐63% 38 17 129% Net gain/(loss) from changes in fair value of biological asse
Slide 8: 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 9: Segmental Performance
SEGMENTAL PERFORMANCE gar agribusiness and food
Slide 10: Segmental Results: Plantations and Palm Oil Mills
SEGMENTAL RESULTS Plantations and Palm Oil Mills Continued recovery in fruit production 9M 2018 9M 2017 YoY 3Q 2018 2Q 2018 QoQ Revenue (US$ million) 1,100 1,252 ‐12% 416 341 22% EBITDA (US$ million) 305 378 ‐19% 108 102 5% EBITDA margin 28% 30% ‐2% 26% 30% ‐4% FFB Production (‘000 tonnes) 7,731 7,3
Slide 11: Plantation Area
PLANTATION AREA To sustain growth, GAR focuses on productivity through replanting and operational excellence Mature Area ‐ ha Planted Area ‐ ha Age Profile as of 30 Sep 2018 14% 5% 6% 473,950 476,965 499,047 502,847 25,097 67,768 101,429 101,214 103,283 102,852 30,851 372,521 375,751 395,764 399,995
Slide 12: Segmental Results: Palm and Lauric
SEGMENTAL RESULTS Palm and Lauric Sustained 3Q 2018 EBITDA margin as demand was able to absorb strong supply growth 9M 2018 9M 2017 YoY 3Q 2018 2Q 2018 QoQ Revenue (US$ million) 4,960 4,913 1% 1,653 1,697 ‐3% Sales Volume (‘000 tonnes) 6,992 6,656 5% 2,511 2,319 8% EBITDA (US$ million) 65 122 ‐47% 2
Slide 13: Segmental Results: Oilseeds and Others
SEGMENTAL RESULTS Oilseeds and Others 9M 2018 9M 2017 YoY 3Q 2018 2Q 2018 QoQ Oilseeds Revenue (US$ million) 362 471 ‐23% 119 99 21% Sales Volume (‘000 tonnes) 609 940 ‐35% 205 176 16% EBITDA (US$ million) 0.4 7.6 ‐94% 5.0 ‐6.9 n.m EBITDA margin 0.1% 1.6% ‐1.5% 4.2% ‐7.0% 11.2% Others Revenue (US$ m
Slide 14: Strategy and Outlook
STRATEGY AND OUTLOOK gar agribusiness and food
Slide 15: Responsible Growth Through Innovation
RESPONSIBLE GROWTH THROUGH INNOVATION Driving operational transformation for responsible growth and long‐term shareholders return Focus TECHNOLOGY CUSTOMER SUSTAINABILITY Goals Digital leapfrog to achieve Sustainable profit growth Responsible palm oil leadership in productivity from high margin prod
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: 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 18: Appendix
APPENDIX gar agribusiness and food
Slide 19: 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 September 2018 Nucleus 22,243 2
Slide 20: 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 20 20
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