Wilmar International Limited · SGX:F34
Wilmar International — Q3 2006 Earnings Presentation
15 slides from Wilmar International's earnings presentation, Nov 9, 2006
Slide 1: Wilmar International Limited 3Q06 Results Briefing
WILMAR INTERNATIONAL LIMITED 3Q06 RESULTS BRIEFING 9 NOVEMBER 2006 1 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 cur
Slide 2: Presentation Overview
Presentation Overview • Introduction - Who We Are - Our Competitive Edge • Industry Trend, Strategies & Expansion Plans • 3Q06 Financial Highlights • Questions & Answers 3 Introduction Presenter: Mr KUOK Khoon Hong 4 2
Slide 3: Who We Are / Our Manufacturing Facilities
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 5 Our Manufacturing Facilities As at 30 Sep 2006 Under construction Activiti
Slide 4: 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 5: 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
Slide 6: Industry Trend, Strategies & Expansion Plans
Industry Trend • Indonesia to become largest producer – Indonesia’s palm oil production for 2006 is expected to increase by 1.8m MT to 16m MT, making it the largest producer in the world • Strong growth in Indonesia – With political stability, abundant land and labour, production will increase faste
Slide 7: Strategies & Expansion Plans
Strategies & Expansion Plans Expansion of oil palm plantation acreage • Greenfield plantation development or acquisition • Total plantation land bank of 210,000 ha (planted : 64,000 ha) • Planting programme – 15,000 ha p.a. • Sizeable source of earnings in the future Expansion of processing capacity
Slide 8: Revenue and Net Profit
Revenue Revenue Volume US$’million ‘million MT 6,000 14 • 3Q06 9% growth in 5,000 12 revenue, 5% 10.5 growth in volume 9.6 10 4,000 • 9M06 3,675 8 8% growth in 3,408 revenue, 9% 3,000 growth in volume 6 2,000 3.5 • Volume growth 3.3 4 mainly from palm and laurics 1,000 1,300 1,190 2 0 0 3Q05 3Q06 9M
Slide 9: Revenue and Profit Before Tax by Business Segment
Revenue By Business Segment * FY2005 9M06 US$190.9m US$151.4m US$268.3m US$268.7m 5% 4% 7% 4% 38% 30% US$1,929.8m 53% US$1,208.1m 59% US$2,372.9m US$2,652.7m Palm & laurics Soya bean & soya bean meal Plantations & palm oil mills Others ** * Before elimination of inter-segment sales ** Comprises fert
Slide 10: Profit Before Tax by Segment; Palm & Laurics
Profit Before Tax by Business Segment FY2005 9M06 US$3.3m US$3.1m 5% 3% US$23.5m US$28.9m 32% 34% 2% 6% 57% US$1.7m 61% US$48.3m US$4.7m US$45.1m Palm & laurics Soya bean & soya bean meal Plantations & palm oil mills Others 19 Merchandising & Refinery - Palm & Laurics 3Q05 3Q06 9M05 9M06 Revenue 644
Slide 11: Merchandising & Refinery - Palm & Laurics and Soya Bean
Merchandising & Refinery - Palm & Laurics • Margins vary throughout the year in line with demand (of refined products) and supply situation (of CPO) • Average pretax margins of about US$10 per MT p.a. in the recent past • Seasonality factor – 2H margins are usually higher due to higher demand in ant
Slide 12: Plantation Statistics
Plantation Statistics 3Q05 3Q06 9M05 9M06 Total planted area 49,763 51,972 49,763 51,972 (hectare) Total mature area 45,355 44,634 45,355 44,634 harvested (hectare) FFB production (tonne) 258,061 272,852 583,497 742,632 Yield per mature hectare 5.7 6.1 12.9 16.6 (tonne) Mill production Crude Palm Oi
Slide 13: Plantation Age Profile and Balance Sheet Highlights
Plantation – Age Profile 31 Dec 2005 Average age of oil palm (hectares) Up to 3 yrs 4 – 6 yrs 7 – 14 yrs 15 - 18 yrs > 18 yrs Total Land rights 2,426 8,672 34,046 4,165 500 49,809 Plasma 534 6,507 21,624 3,461 - 32,126 Programme Total 2,960 15,179 55,670 7,626 500 81,935 % of total area 3.6% 18.5% 6
Slide 14: Funding Structure and Key Ratios
Funding Structure US$ million 30 Sep 06 Current Assets 896.9 • Strengthened by US$173m Current Liabilities 922.3 new equity • Negative net current assets Net current assets (25.4) (30 June 06 : US$123m) and amount of long term Borrowings structure : assets funded by short term Long term borrowings 3
Slide 15: Questions & Answers
Questions & Answers 29 15