Wilmar International Limited · SGX:F34
Wilmar International — Q1 2007 Earnings Presentation
16 slides from Wilmar International's earnings presentation, May 15, 2007
Slide 1: Wilmar International 1Q07 Results Briefing
WILMAR INTERNATIONAL LIMITED 1Q07 RESULTS BRIEFING 15 MAY 2007 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 current
Slide 2: Presentation Overview
PRESENTATION OVERVIEW • 1Q07 Financial Highlights • Merger & Restructuring Update • Prospects & Future Plans • Questions & Answers • Appendix – Background information 3 1Q07 FINANCIAL HIGHLIGHTS Presenter: Mr CHUA Phuay Hee 4 2
Slide 3: Revenue and Net Profit
Revenue Revenue Volume US$’million ‘million MT 2,000 4 1,800 3.4 • 1Q07 41% growth in 1,600 2.9 revenue, 17% 3 1,400 1,534.9 growth in volume 1,200 • Volume growth 1,000 1,088.2 2 mainly from palm and laurics 800 600 1 400 200 0 0 1Q06 1Q07 Volume 5 Net Profit US$’million • Up 66% yoy 40 • Growth dr
Slide 4: Revenue and Profit Before Tax by Business Segment
Revenue By Business Segment * FY2006 1Q07 US$197.0m US$66.1m US$401.3m US$111.9 7% 3% 7% 4% 23% US$392.2m 31% US$1,765.6m 66% 59% US$1,099.4m US$3,412.3m Palm & laurics Soya bean & soya bean meal Plantations & palm oil mills Others ** * Before elimination of inter-segment sales ** Comprises fertilis
Slide 5: Profit Before Tax by Segment; Palm & Laurics
Profit Before Tax by Business Segment FY2006 * 1Q07 US$3.5m US$2.9m 2% 8% US$54.5m 36% 37% US$12.9m 5% 52% 57% US$18.1m US$6.7m US$85.0m US$1.2m 3% Palm & laurics Soya bean & soya bean meal Plantations & palm oil mills Others ** * Exclude unallocated expenses of US$14.3million representing goodwill
Slide 6: Soya Bean Business and Plantation Statistics
Merchandising & Refinery - Soya Bean Business 1Q06 1Q07 Revenue (US$ million) 384.7 392.2 Sales volume (‘000 MT) 1,442 1,212 Profit before tax (US$ million) 1.4 1.2 Profit before tax per MT (US$/MT) 1.00 1.00 • Profit - function of sales volume and fee per MT • Volume – in line with shipment to Chin
Slide 7: Plantation Statistics and Age Profile
Plantation Statistics • Higher 1Q07 FFB production due to new plantations acquired towards end-2006 • Decline in 1Q07 yield to 4.2MT/ha (1Q06 : 4.8MT/ha) due to impact from drought in South Sumatra in 2H06 and lower yield of plantations acquired • CPO and PK extraction rate – fairly constant • Own p
Slide 8: Balance Sheet Highlights and Funding Structure
Balance Sheet Highlights US$ million 31 Dec 06 31 Mar 07 Equity 606.7 617.3 • Balance sheet - Net placement proceeds 172.9 - remains strong • Net gearing ratio at Long Term Assets 779.7 820.6 a comfortable level of 1.3x Net Gearing Ratio 1.2x 1.3x • Consistent short - Total Borrowings 759.6 897.9 wo
Slide 9: Key Ratios; Merger & Restructuring Update
Key Ratios Year ended 3 mths ended 31 Dec 06 31 Mar 07 Shareholders’ Funds (US$ million) 584.8 589.5 Return on Average Equity 24.6% 17.7% Return on Average Capital Employed # 22.9% 16.5% Return on Average Assets 6.6% 5.5% EPS (US cents) 4.51 1.03 Net tangible assets per share (US cents) 22.59 23.01
Slide 10: Merger & Restructuring Update
Merger & Restructuring Update Merger with Kuok Group’s palm plantation, edible oils, grains and related businesses (Kuok Group Merger) • All regulatory and shareholders’ approvals – obtained • PGEO Acquisition – completed on 8 May 2007 • PPBOP Takeover Offer – secured >90% acceptance, to commence co
Slide 11: Prospects & Future Plans: Industry Prospects
PROSPECTS & FUTURE PLANS Presenter: Mr KUOK Khoon Hong 21 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. •
Slide 12: Growth Strategy – Post-Merger
Growth Strategy – Post-Merger Merger & restructuring exercise to create Asia’s Leading Agribusiness Group • Palm oil merchandising & processing activities - largest processor & merchandiser of palm oil globally - cost savings/synergy by combining shipment, supplying from best location and enhanced m
Slide 13: Questions & Answers; Appendix – Background Information
QUESTIONS & ANSWERS 25 APPENDIX - Background information 26 13
Slide 14: 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 27 Our Manufacturing Facilities As at 31 March 2007 Under construction Activ
Slide 15: Capturing the Entire Value Chain of Palm Oil
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 16: Our Competitive Edge; Merger & Restructuring Overview
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