Wilmar International Limited · SGX:F34
Wilmar International — FY2006 Earnings Presentation
31 slides from Wilmar International's earnings presentation, Feb 15, 2007
Slide 1: Wilmar International Limited FY2006 Results Briefing
WILMAR INTERNATIONAL LIMITED FY2006 RESULTS BRIEFING 15 FEBRUARY 2007 1
Slide 2: Important Notice
IMPORTANT NOTICE Information in this presentation 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 based on current assumptions which are subject to various risks and which may cha
Slide 3: Presentation Overview
PRESENTATION OVERVIEW • FY2006 Financial Highlights • Merger & Restructuring Update • Prospects & Future Plans • Questions & Answers • Appendix – Background information 3
Slide 4: FY2006 Financial Highlights
FY2006 FINANCIAL HIGHLIGHTS Presenter: Mr CHUA Phuay Hee 4
Slide 5: Revenue
Revenue Revenue Volume US$’million ‘million MT 6,000 14.8 16 13.2 • FY06 14 5,000 5,302 14% growth in 12 revenue, 12% 4,652 growth in volume 4,000 10 • 4Q06 3,000 8 31% growth in revenue, 18% 6 growth in volume 2,000 4.3 3.6 4 1,627 • Volume growth 1,000 1,243 mainly from palm 2 and laurics 0 0 FY05
Slide 6: Net Profit
Net Profit US$’million • FY06 - up 80% 120 • 4Q06 - up 152% 104.6 • Growth drivers 100 palm and laurics volume and margin expansion; 80 higher plantation production and CPO prices 60 58.0 • FY06 pretax profit included : 40 36.3 US$17.4m increase in value of biological assets 20 US$9.5m biodiesel 14.
Slide 7: Revenue By Business Segment
Revenue By Business Segment * FY2005 FY2006 US$190.9m US$197.0m US$268.3m US$401.3m 5% 4% 7% 3% 38% 31% US$1,929.5m 53% US$1,765.6m 59% US$3,412.3m US$2,653.0m Palm & laurics Soya bean & soya bean meal Plantations & palm oil mills Others ** * Before elimination of inter-segment sales ** Comprises fe
Slide 8: Profit Before Tax by Business Segment
Profit Before Tax by Business Segment US$ million 4Q05 4Q06 FY05 FY06 Merchandising & Refinery 12.8 38.7 46.7 91.7 Palm & laurics 12.3 36.7 45.0 85.0 Soya bean & meal 0.5 2.0 1.7 6.7 Plantations & Palm 4.4 25.6 23.2 54.5 Oil Mills Others 3.2 0.4 3.6 3.5 Unallocated expenses - (14.3) - (14.3) Total p
Slide 9: Profit Before Tax by Business Segment
Profit Before Tax by Business Segment FY2005 FY2006 * US$3.6m US$3.5m 5% 2% US$23.2m US$54.5m 32% 36% 2% 57% 61% 5% US$1.7m US$6.7m US$85.0m US$45.0m Palm & laurics Soya bean & soya bean meal Plantations & palm oil mills Others * Exclude unallocated expenses 9
Slide 10: Merchandising & Refinery - Palm & Laurics
Merchandising & Refinery - Palm & Laurics 4Q05 4Q06 FY05 FY06 Revenue (US$ million) 664 1,039 2,653 3,412 Sales volume (‘000 MT) 1,674 2,277 6,571 8,100 Production volume (‘000 MT) 1,274 1,768 4,974 6,065 Profit before tax (US$ million) # 12.3 27.2 45.0 75.5 Profit before tax per MT 9.63 15.38 9.05
Slide 11: Merchandising & Refinery - Soya Bean Business
Merchandising & Refinery - Soya Bean Business 4Q05 4Q06 FY05 FY06 Revenue (US$ million) 526 557 1,930 1,766 Sales volume (‘000 MT) 1,943 1,992 6,663 6,687 Profit before tax 0.5 2.0 1.7 6.7 (US$ million) Profit before tax per MT 0.25 1.00 0.25 1.00 (US$/MT) • Profit - function of sales volume and fee
Slide 12: Plantation Statistics
Plantation Statistics 4Q05 4Q06 FY05 FY06 Total planted area 49,809 66,367 49,809 66,367 (hectare) Total mature area 44,771 55,318 44,771 55,318 harvested (hectare) FFB production (tonne) 233,061 252,562 816,558 995,194 Yield per mature hectare 5.2 4.6 18.2 21.2 (tonne) Mill production Crude Palm Oi
Slide 13: Plantation Statistics
Plantation Statistics • Increased FY06 FFB production due to : – Improved yield (FY06 : 21.2MT/ha, FY05 : 18.2MT/ha) – Full year effect from plantations acquired in FY05 • Decline in 4Q06 yield to 4.6MT/ha (FY05 : 5.2MT/ha) due to drought in South Sumatera • CPO and PK extraction rate – fairly const
Slide 14: Plantation – Age Profile
Plantation – Age Profile 31 Dec 2005 Average age of oil palm (hectares) Up to 3 yrs 4 – 6 yrs 7 – 14 yrs 15 - 18 yrs > 18 yrs Total Land rights 2,426 8,672 34,046 4,165 500 49,809 Plasma 534 6,507 21,624 3,461 - 32,126 Programme Total 2,960 15,179 55,670 7,626 500 81,935 % of total area 3.6% 18.5% 6
Slide 15: Balance Sheet Highlights
Balance Sheet Highlights US$ million 31 Dec 05 31 Dec 06 • Strengthened balance sheet with Equity 279.7 606.7 117% increase in equity from strong - Net placement proceeds - 172.9 earnings and Long Term Assets 588.7 779.7 placement proceeds • Long term assets - well-timed Net Gearing Ratio 2.5x 1.2x
Slide 16: Funding Structure
Funding Structure US$ million 31 Dec 06 Current Assets 1,063.9 • Strengthened by US$173m Current Liabilities 1,110.6 new equity • Negative net current assets Net current assets (46.7) (30 June 06 : US$123m) and long term assets funded by Borrowings structure : short term borrowings (30 Long term bor
Slide 17: Key Ratios
Key Ratios Year ended Year ended 31 Dec 05 31 Dec 06 Shareholders’ Funds (US$ million) ** 266.4 584.8 Return on Average Equity 24.0% 24.6% Return on Average Capital Employed # 13.9% 22.9% Return on Average Assets 4.2% 6.6% EPS (US cents) 2.67 4.51 Net tangible assets per share (US cents) 11.26 22.59
Slide 18: Merger & Restructuring Update
MERGER & RESTRUCTURING UPDATE 18
Slide 19: Merger with Kuok Group's palm plantation, edible oils, grains businesses
Merger & Restructuring Update Merger with Kuok Group’s palm plantation, edible oils, grains and related businesses • Securities Commission of Malaysia (on behalf of the Foreign Investment Committee) – no objections to the conditional voluntary take-over offer of PPBOP but additional equity condition
Slide 20: Restructuring to acquire WHPL's edible oils, grains businesses
Merger & Restructuring Update Restructuring exercise to acquire WHPL’s edible oils, grains and related businesses, including interests held by ADM • S & P Agreement – signed with WHPL • Regulatory approvals – in progress • Target completion – 2Q07 Other Merger & Restructuring Matters • Staff redunda
Slide 21: Prospects & Future Plans
PROSPECTS & FUTURE PLANS Presenter: Mr KUOK Khoon Hong 21
Slide 22: Industry Prospects
Industry Prospects • Tremendous opportunities in the processing and merchandising of palm oil – rapid expansion of palm oil production; 32m MT palm oil production by Malaysia and Indonesia in 2006, potential to grow to > 60m MT in 10 years. • Palm oil prices to remain favourable – to be driven by th
Slide 23: Growth Strategy – Pre-Merger
Growth Strategy – Pre-Merger Expansion of merchandising and processing capabilities • Expand refining, crushing and milling operations in line with growth in Indonesian palm oil production Expansion of oil palm plantation acreage • Greenfield plantation development or acquisition • Planting programm
Slide 24: Growth Strategy – Post-Merger
Growth Strategy – Post-Merger Merger & restructuring exercise to create Asia’s Leading Agribusiness Group • Palm oil merchandising & processing activities – largest merchandiser & processor of palm oil globally; cost savings / synergy from streamlined operations and enhanced market intelligence • Pl
Slide 25: Questions & Answers
QUESTIONS & ANSWERS 25
Slide 26: Appendix - Background information
APPENDIX - Background information 26
Slide 27: Who We Are
Who We Are • Established in 1991 and headquartered in Singapore • One of Asia’s Largest Integrated Agribusiness Groups • Our business activities: – Manufacturing – Merchandising – Plantation *Strictly Private & Confidential 27
Slide 28: Our Manufacturing Facilities
Our Manufacturing Facilities As at 31 Dec 2006 Under construction Activities No. of No. of Capacity No. of Capacity Plants Locations (MT/annum) Plants (MT/annum) Refining 18 9 5,339,400 - - Fractionation 17 9 5,177,700 - - Palm Kernel & 17 12 1,894,200 1 33,000 Copra Crushing Palm Oil Milling 20 20
Slide 29: Capturing the Entire Value Chain of the Palm Oil Business
Capturing the Entire Value Chain of the Palm Oil Business - from Origin to Customer Customer Origin • Origination • Merchandising, - Plantation Shipping & Distribution • Products - Sourcing of palm • Processing - Owns fleet of liquid - Bulk oil fruits & crude - Milling, crushing, bulk vessels - Cons
Slide 30: Who We Are: Merchandising and Plantation
Who We Are Merchandising • Leading global palm & lauric oils merchandiser – Quantity merchandised in 2005 – 6,042,600 MT – Quantity merchandised in 2006 – 7,557,800 MT • One of the major soya bean buyers in the world – Traded 6,663,200 MT in 2005 – Traded 6,687,400 MT in 2006 • One of Indonesia’s la
Slide 31: Our Competitive Edge
Our Competitive Edge • Capturing Margin across Value Chain - lower manufacturing cost, energy cost savings, logistics cost reduction, lower marketing cost & lower freight cost • Global Market Intelligence - through large scale origination of CPO & PK, worldwide merchandising network and access to sh