Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — H1 2008 Earnings Presentation
33 slides from Golden Agri-resources's earnings presentation, Aug 12, 2008
Slide 1: Interim Performance Presentation 1H 2008
Interim Performance Presentation 1H 2008 : first half ended 30th June 2008 12 August 2008 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 Introduction 5 Section 3 Financial Highlights 11 Section 4 Operational Highlights 20 Section 5 Growth Strategy 25 Section 6 Closing Summary 29 2
Slide 4: Executive Summary
Section 1 Executive Summary 3
Slide 5: Golden Era for Golden Agri
1H 2008 Performance Summary Golden Era for Golden Agri • Record first half Net Profit of over USD1.0 billion, increased by 129% from last year • Revenue increased by 129% to USD1.6 billion • Gross profit increased by 137% to USD564 million • EBITDA increased by 101% to USD424 million • Record first
Slide 6: Introduction
wa gar ZF gar and food Section 2 Introduction
Slide 7: Overview of GAR
Overview of GAR Indonesia’s largest palm oil plantation company and second largest in the world One of the lowest-cost producers with industry- leading efficiencies Operations in Indonesia and China Vertically integrated operation in Indonesia captures returns from all levels of palm oil value chain
Slide 8: Operations in Indonesia
Operations in Indonesia Belawan Sumatra Kalimantan Sulawesi Papua Jakarta Tarjun Surabaya Java Bali Plantations and Mills Refineries Jakarta Refinery (plan) 7
Slide 9: Operations in China
Operations in China Shanghai Ningbo ZHEJIANG HUNAN JIANGXI FUJIAN GUANGDONG Refinery Zhuhai Crushing Facility Port & Storage Facility Distribution Centers 8
Slide 10: Competitive Strengths
Competitive Strengths 368,000 hectares of plantation under management with efficiency through economies of scale Favorable age profile ensuring production growth 1.3 million hectares land bank1 available (equivalent to 18.5x Singapore2) for expansion Vertically-integrated operations to maximise prof
Slide 11: Integrated Operations in Indonesia
Integrated Operations in Indonesia1 Research & Processed Basic product Processing Development product CPO Refining Branded & unbranded cooking oil Plantations & No. of refinery CPO mill Production 3 Harvesting Co-operate with Fatty acid 1,607,877 tons Capacity CIRAD from Planted area (FY 2007) 1,140
Slide 12: Financial Highlights
Section 3 Financial Highlights
Slide 13: Financial Summary – 1H 2008
Financial Summary – 1H 2008 US$'million 1H 2008 1H 2007 % Change Revenue 1,564 682 129% Gross Profit 564 238 137% EBITDA 424 211 101% Net Profit attributable to equity holders 1,025 447 129% Comprising: Net gain from changes in fair value of biological assets (Net of tax & Minority Interests)1 733 2
Slide 14: Financial Summary – 2Q 2008 vs 2Q 2007
Financial Summary – 2Q 2008 vs 2Q 2007 US$'million 2Q 2008 2Q 2007 % Change Revenue 817 406 101% Gross Profit 300 135 121% EBITDA 222 123 81% Net Profit attributable to equity holders 582 228 155% Comprising: Net gain from changes in fair value of biological assets (Net of tax & Minority Interests)1
Slide 15: Financial Summary – 2Q 2008 vs 1Q 2008
Financial Summary – 2Q 2008 vs 1Q 2008 US$'million 2Q 2008 1Q 2008 % Change Revenue 817 747 9% Gross Profit 300 265 13% EBITDA 222 202 10% Net Profit attributable to equity holders 582 443 31% Comprising: Net gain from changes in fair value of biological assets (Net of tax & Minority Interests)1 426
Slide 16: Segmental Results – 1H 2008
Segmental Results – 1H 2008 (in US$ million) Indonesia Operation China Operation 1H 2008 1H 2007 % Change 1H 2008 1H 2007 % Change Revenue 1,213 512 137% 351 170 107% Gross Profit 547 223 145% 18 15 17% Gross Profit Margin 45% 44% 1% 5% 9% -4% EBITDA 411 198 108% 13 13 - EBITDA Margin 34% 39% -5% 4%
Slide 17: Fertiliser Cost Management
Fertiliser Cost Management Fertiliser price moves in tandem with crude oil Fertiliser Cost and Fruit Yield Analysis and CPO prices, providing a natural hedge Fertiliser cost accounts for 27% of our total Yield (kg FFB/palm/year) Profit (US$/palm) CPO cash production cost for 1H 2008, Optimum fertili
Slide 18: Revenue By Product and Geographical Location
Revenue By Product and Geographical Location Record revenue of US$1,564 million mainly from CPO and refined palm oil based products Revenue - By Product Revenue – By Country Revenue Indonesia Operations – By Product PK Others Soybean 2% 2% Oil 5% Soybean Indo Local Refined China Local Others Meal 9%
Slide 19: Financial Position
Financial Position Strong balance sheet Low debt to equity ratio with capacity to gear up for expansion (in US$ million) 30-Jun-08 31-Dec-07 % Change Total Assets 6,593 5,013 32% Cash and Short-Term Investments 216 147 47% Total Liabilities 2,163 1,632 33% Interest Bearing Debts 579 492 18% Total Eq
Slide 20: Dividend Policy and Payment
Dividend Policy and Payment We announce an interim dividend for first half 2008 of 0.80 Singapore cents per share Interim Description 2005 2006 2007 2007 2008 Dividend per share (in Singapore cents) 0.251 0.541,2 1.001,3 0.501 0.80 Total Dividend (in S$ million) 21.69 53.42 99.76 49.88 79.81 Dividen
Slide 21: Operational Highlights
Section 4 Operational Highlights
Slide 22: Plantation Area
Plantation Area GAR is one of the largest oil palm plantation companies in the world with integrated operations 31 Dec 30 Jun 30 Jun 30 Jun 2007/2008 (in ha) 2007 2007 2008 % increase Planted Area 359,732 345,715 367,814 6.4% Nucleus 277,629 264,873 285,678 7.9% Plasma 82,103 80,842 82,136 1.6% Matu
Slide 23: Plantation Area
Plantation Area GAR’s planted area is increasing with a favourable age profile underpinned by significant growth from immature and young plantations Immature Young Prime Old Total (in ha) (0-3 years) (4-6 years) (7-18 years) (>18 Years) 1H 2008 Nucleus 57,193 19,970 170,511 38,004 285,678 Plasma 1,5
Slide 24: Production Highlights
Production Highlights First half Palm Product Production increased by 22% to 1,045,000 tons Higher FFB and CPO yields due to increased mature hectarage and efficient plantation management including precision fertiliser application 1H 2008 1H 2007 Change 2Q 2008 2Q 2007 Change FFB Production (tons) 3
Slide 25: Production Performance
Production Performance • First half Palm Product Production increased by 22% to 1,045,000 tons • Consistent year-on-year increases in volumes and yields FFB Production Palm Product Production (‘000 Tons) (‘000 Tons) (Ton/ha) 6,765 23.1 7,000 2,100 21.4 22.1 24 6,001 5,870 6,000 1,687 359 1,800 337 2
Slide 26: Growth Strategy
wa gar ZF gar and food Section 5 Growth Strategy
Slide 27: 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 Second largest in the world with 368,000 ha planted and a target
Slide 28: 1H 2008 Growth Achievements and Targets for Upstream Business
1H 2008 Growth Achievements and Targets for Upstream Business Increasing Planted Hectarage by 40,000 to 60,000 ha • Expanded our planted area by some 8,000 ha through new planting • Pending completion of acquisition of another 10,000 ha • Land clearing process on track and entire seeds requirement a
Slide 29: 1H 2008 Growth Achievements and Targets for Downstream Business
1H 2008 Growth Achievements and Targets for Downstream Business Additional Downstream Processing and Refining Capacity • A new refinery in Tarjun, South Kalimantan with capacity of 300,000 ton/year was completed and commenced operation since May 2008 • Acquired an additional 60% stake for full owner
Slide 30: Closing Summary
wa gar ZF gar and food Section 6 Closing Summary
Slide 31: Golden Era for Golden Agri
1H 2008 Performance Summary Golden Era for Golden Agri • Record first half Net Profit of over USD1.0 billion, increased by 129% from last year • Revenue increased by 129% to USD1.6 billion • Gross profit increased by 137% to USD564 million • EBITDA increased by 101% to USD424 million • Record first
Slide 32: Outlook
Outlook The fundamental factors affecting CPO price remain valid • Continuing strong global demand especially from fast growing countries such as China and India • High barrier of entry and long lead time to increase CPO production • Biodiesel usage acts as a floor to CPO price provided that crude o
Slide 33: 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 Website : www.goldenagri.com.sg Telephone : +65 62207720 Facsimile : +65 62207020 Contact Person : Rafael B. Concepcion, Jr. (rafaelc@goldenagri.com.sg) Suwan
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