Golden Agri-Resources Ltd · SGX:E5H
Golden Agri-Resources — H1 2015 Earnings Presentation
22 slides from Golden Agri-Resources's earnings presentation, Aug 13, 2015
Slide 1: Interim Performance Presentation
Golden Agri-Resources Ltd Interim Performance Presentation Second quarter and half-year ended 30th June 2015 13 August 2015
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 15 5 Appendix 18 slide 3
Slide 4: Executive Summary
Executive Summary 5) gar agribusiness and food
Slide 5: Executive Summary
Executive Summary 2Q 2015 EBITDA and net profit increased as improving trend in downstream operations continues, while upstream saw QoQ production growth EBITDA1 (US$ million) 200 2Q 2015 results QoQ YoY 160 150 Revenue US$1,831 mn 18% 10% 110 EBITDA1 US$145 mn 13% 11% 100 101 Net Profit2 US$39 mn 1
Slide 6: Financial Highlights
Financial Highlights slide 6
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance (in US$ million) 1H 2015 1H 2014 YoY 2Q 2015 1Q 2015 QoQ Revenue 3,384 3,953 -14% 1,831 1,553 18% Gross Profit 526 730 -28% 289 237 22% EBITDA1 273 331 -17% 145 128 13% Interest on borrowings -63 -58 9% -32 -31 3% Depreciation and amortisation -81 -72 12% -42 -40 5
Slide 8: Financial Position
Financial Position Strong balance sheet fundamentals with ample liquidity and prudent gearing (in US$ million) 30-Jun-15 31-Dec-14 Change Total Assets 14,919 14,667 1.7% Fixed Assets1 10,692 10,455 2.3% Total Liabilities 6,094 5,848 4.2% Adjusted Net Debt2 1,778 1,626 9.4% Net Debt3 2,490 2,478 0.5%
Slide 9: Segmental Performance
Segmental Performance slide 9
Slide 10: Segmental Results – Plantations and Palm Oil Mills
Segmental Results – Plantations and Palm Oil Mills Second quarter results improved with higher production 1H 2015 1H 2014 YoY 2Q 2015 1Q 2015 QoQ Revenue (US$ million) 773 1,019 -24% 432 341 27% EBITDA1 (US$ million) 211 331 -36% 110 101 9% EBITDA1 margin 27% 32% -5% 26% 30% -4% FFB Production (‘000
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 2015 460,838 484,472 472,837 5% 5% 440,578 101,089 10% 97,368 100,886 25,433 95,799 23,634 48,985 363,470 383,383 371,951 36% 344,779 171,
Slide 12: Segmental Results – Palm and Lauric
Segmental Results – Palm and Lauric Improved palm downstream margins resulting in higher EBITDA 1H 2015 1H 2014 YoY 2Q 2015 1Q 2015 QoQ Revenue (US$ million) 3,037 3,380 -10% 1,637 1,401 17% Sales Volume (‘000 tonnes) 4,359 4,020 8% 2,326 2,033 14% EBITDA1 (US$ million) 55 40 38% 32 23 39% EBITDA1 m
Slide 13: Strengthening Position Across the Downstream Value Chain
Strengthening Position Across the Downstream Value Chain Sourcing of Product Sales and raw materials Processing customisation distribution Over 4 million Construction of • Sales of palm • Destination sales tonnes of palm additional downstream based refined contribute 68% to our based products were f
Slide 14: Segmental Results – Oilseeds and Others
Segmental Results – Oilseeds and Others Positive contribution from oilseed segment due to improved business environment 1H 2015 1H 2014 YoY 2Q 2015 1Q 2015 QoQ 1Q 2015 4Q 2014 QoQ 1Q 2014 YoY Oilseeds Revenue (US$ million) 319 425 -25% 184 134 37% Sales Volume (‘000 tonnes) 612 637 -4% 362 250 45% E
Slide 15: Strategy and Outlook
Strategy and Outlook slide 15
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 capture profit opportunities across the value chain Upstream • Focusing on replanting to sustain production growth • Continued efforts in yield impro
Slide 17: Holistic Approach to Sustainability
Holistic Approach to Sustainability Increased transparency - GAR has upgraded Sustainability Dashboard - Provides information on the Company's palm oil mills, nucleus estates, smallholders, third party suppliers as well as its refineries. By the end of 2015, GAR is expected to achieve full supply ch
Slide 18: Appendix
Appendix slide 18
Slide 19: Amendments to IAS 41
Amendments to IAS 41 Adoption of the new accounting treatment is expected to have no material impact on GAR’s financial statements Current Effective 1 Jan 2016 All biological assets are • Bearer plant (palm trees) should be accounted for as measured and accounted property, plant and equipment (IAS 1
Slide 20: Proforma Impact from Amendments to IAS 41
Proforma Impact from Amendments to IAS 41 Proforma financials show gearing remains prudent while no cash impact to performance Proforma Proforma (in US$ million) 31-Dec-14 Impact 31-Dec-14 Plantation Assets 7,902 (6,764) 1,138 Deferred Tax Liabilities 1,843 (1,575) 268 Equity1 8,729 (5,023) 3,706 Lo
Slide 21: Age Profile
Age Profile The average age of GAR’s plantations is 15 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 2015 Nucleus 19,913 39,829 179,831 121,907 21,903 383,383 Plasma
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 slide 22
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