Golden Agri-Resources Ltd · SGX:E5H
Golden Agri-Resources — FY2021 Earnings Presentation
25 slides from Golden Agri-Resources's earnings presentation, Mar 1, 2022
Slide 1: Golden Agri-Resources Ltd (GAR) Full Year 2021 Performance Presentation
www.goldenagri.com.sg Golden Agri-Resources Ltd (GAR) Full Year 2021 Performance Presentation 1 March 2022
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: Executive Summary
Executive Summary GAR sustained its excellent performance in the second half 2021 resulting to a record set of results for the year Segmental EBITDA3 (US$ million) 1,213 FY 2021 Financial Performance 434 Revenue EBITDA Underlying Profit1 Total Dividend2 US$10.18 bn US$1.21 bn US$603 mn S$1.605 cents
Slide 4: Financial Highlights
Cia | Financial Highlights /
Slide 5: Financial Performance
Financial Performance Record full year performance contributed from both upstream and downstream businesses US$ million FY 2021 FY 2020 YoY 2H 2021 1H 2021 HoH Revenue 10,183 7,078 44% 5,728 4,454 29% Gross Profit 2,355 1,150 105% 1,294 1,061 22% EBITDA1 1,214 669 81% 691 523 32% Underlying Profit2
Slide 6: Financial Position
Financial Position Prudent leverage and strong liquidity position amidst the continuing COVID-19 pandemic US$ million 31-Dec-21 31-Dec-20 Change Total Assets 9,608 9,126 5% Cash and short-term investments 666 1,097 -39% Fixed assets1 3,999 4,127 -3% Total Liabilities 4,716 4,695 0.5% Net Debt2 970 1
Slide 7: FY2021 Dividend Distribution
FY2021 Dividend Distribution Considering GAR’s robust performance, the Board declares final dividend of 1.077 Singapore cents per share, bringing total dividend to 1.605 Singapore cents per share for the full year 2021 2021 Cash Dividend 2018 2019 2020 Interim Final Total Dividend per share (in S$ c
Slide 8: Share Buyback Programme
Share Buyback Programme GAR will initiate a share buyback programme to reward our shareholders Allocated Amount Up to US$100 million Period Year 2022 • Capital return to shareholders Objectives • Complementary to existing dividend policy • Shares will be held as treasury shares • Authorisation by sh
Slide 9: Segmental Performance
Cia | Segmental Performance /
Slide 10: Segmental Results: Plantations and Palm Oil Mills
Segmental Results Plantations and Palm Oil Mills Higher margins supported by sustained strength in CPO prices and output growth FY 2021 FY 2020 YoY 2H 2021 1H 2021 HoH Revenue (US$ million) 2,190 1,482 48% 1,147 1,043 10% EBITDA (US$ million) 779 416 87% 414 365 13% EBITDA margin 36% 28% 8% 36% 35%
Slide 11: Oil Palm Plantations
Oil Palm Plantations Continued long-term productivity growth through replanting and technological innovation Mature Area (ha) Planted Area (ha) Age Profile as of 31 December 2021 536,013 535,923 9% 485,290 18% 484,947 113,980 111,216 50,723 8% 106,280 105,781 97,356 41,015 379,010 379,166 422,033 42
Slide 12: Segmental Results: Palm, Laurics and Others
Segmental Results Palm, Laurics and Others Stronger margins were sustained in the second half 2021 resulting to a robust full year performance FY 2021 FY 2020 YoY 2H 2021 1H 2021 HoH Revenue (US$ million) 10,150 7,058 44% 5,716 4,433 29% Sales Volume (‘000 tonnes) 10,131 10,140 -0.1% 5,353 4,778 12%
Slide 13: Competitive Strengths
Cia | Competitive Strengths /
Slide 14: Building on Competitive Strengths for Sustainable Growth
Building on Competitive Strengths for Sustainable Growth Best-in-class plantations with managed age profile continues to deliver above-industry yields 1 Strong financial position Integrated business and consistent dividend 5 2 model provides robust distribution profit base 4 3 Science and technologi
Slide 15: Best-in-class Plantations with Managed Age Profile Deliver Above-Industry Yields
1.Best-in-class Plantations with Managed Age Profile Continues to Deliver Above-Industry Yields Taking initiative in technological innovation allows GAR to stay ahead in yield growth GAR’s 2021 CPO yield was 30% higher than Our high-quality nucleus estates • Precision Agriculture through Indonesia a
Slide 16: Integrated Business Model Provides Robust Profit Base
2.Integrated Business Model Provides Robust Profit Base Origination of Processing and Logistic Destination Market Raw Materials Product Customisation Excellence Expertise 11.5% EBITDA margin Our end-to-end ability in managing 1200 12% across the integrated value chain 9.6% 1171 Downstream enabling u
Slide 17: Sustainability is Our Business Imperative
3. Sustainability is Our Business Imperative Strong commitment to responsible palm oil production Driving sustainability from the source through traceability to the plantation (TTP) The GAR Social and Environmental • To date, 95% of palm supply chain is fully traceable to the plantation Policy (GSEP
Slide 18: GAR Scores Strongly on ESG
3. GAR Scores Strongly on ESG Since 2018, GAR is part of Ranks 38/519 on the FTSE4Good index with score 3.3/5 Singapore Governance and and 59 percentile rank Transparency Index 2021 Won in two categories in the Sustainable Business Awards 2021 – CDP rating A- for forests Supply Chain Management and
Slide 19: Science and Technological Innovation
4. Science and Technological Innovation Embracing science and technological innovation for responsible growth and margin enhancement Aim for high-productivity and High-yielding, drought-and-disease- zero-waste precision agriculture resistant planting materials for sustainable growth In-house develop
Slide 20: Strong financial position and consistent dividend distribution
5.Strong financial position and consistent dividend distribution Strong growth in operating cash Strengthened financial ratios amidst Consistent dividend yield of flows1 the continuing pandemic above 2% in the past five years 7.54 5.5 0.43 0.41 819 0.40 0.35 614 629 626 4.83 520 523 2.9 3.55 0.25 2.
Slide 21: Strategy and Outlook
Cia | Strategy and Outlook /
Slide 22: Strategy and Outlook
Strategy and Outlook Strategic Focus • Continue to develop capability in serving growing global demand of health- friendly and sustainably-produced products, leveraging the strengths as a leading technology-driven soil-to-table agribusiness • Targeted capital expenditure at US$175-200 million in 202
Slide 23: Appendix
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Slide 24: 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 2021 Nucleus 43,024 37
Slide 25: Contact information
If you need further information, please contact: Golden Agri-Resources Ltd c/o 108 Pasir Panjang Road #06-00 Golden Agri Plaza Singapore 118535 Tel: +65 6590 0800 Fax: +65 6590 0887 www.goldenagri.com.sg Richard Fung - Director, Investor Relations [email protected] golden-agri-resources-ltd