Wilmar International Limited · SGX:F34
Wilmar International — Q2 2008 Earnings Presentation
27 slides from Wilmar International's earnings presentation, Aug 15, 2008
Slide 1: Wilmar International Limited 2Q08 Results Briefing
WILMAR INTERNATIONAL LIMITED 2Q08 RESULTS BRIEFING 15 AUGUST 2008 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 • 2Q08 Financial Performance • Business Update • Questions & Answers 3
Slide 4: 2Q08 Financial Performance
2Q08 Financial Performance Presenter: Mr CHUA Phuay Hee 4
Slide 5: Merger & Restructuring Shareholding & Legal Completion
Merger & Restructuring Shareholding & Legal Completion 19.6% Kuok Group WHPL ADM Public 31.2% 48.2% 6.7% 13.9% 65.8% 100.0% 100% 100% 34.2% PGEO PPBOP KOG IPT Assets Pre-merger Wilmar Legal completion 8 May 07 24 May 07* 28 June 07 28 June 07 Shares issued 287 m 1,024 m 1,092 m 2,533 m 1,450 m (6,38
Slide 6: Merger & Restructuring – Accounting Treatment
Merger & Restructuring – Accounting Treatment Pooling of Interest Purchase Method Method Financial Pre-Merger PGEO PPBOP KOG IPT Qtr Wilmar 1Q07 Restated 2Q07 Restated 3Q07 4Q07 1Q08 2Q08 Included in consolidated results 6
Slide 7: Results Overview
Results Overview 2Q08 vs 2Q07 U Revenue US$7.8 bn 162% Net profit US$332 m 227% Earnings per share US5.1 c 33% 1H08 vs 1H07 U Revenue US$15.0 bn 202% Net profit US$675 m 346% Earnings per share US10.3 c 81% 7
Slide 8: Revenue
Revenue Revenue Volume US$’million ‘million MT • 2Q08 vs 2Q07 20,000 18.0 - revenue up 162% 15.5 - volume up 45% 15.0 • 1H08 vs 1H07 15,000 14,971 - revenue up 202% 12.0 - volume up 58% 9.8 10,000 7.9 9.0 • Key drivers : higher demand; 5.5 7,830 firmer prices of 6.0 commodities; and 5,000 merger wit
Slide 9: Revenue by Business Segment
Revenue by Business Segment 1H07 1H08 5.3% 2.5% 4.4% 2.6% 3.3% 15.6% 27.1% 24.1% 61.8% 53.3% Oilseeds and Consumer Plantations and Palm & laurics Others grains products palm oils mills * Before elimination of inter-segment sales 9
Slide 10: Net Profit
Net Profit US$’million 800 • 2Q08 vs 2Q07 - up 227% 700 - up 139% on proforma net profit of US$138.8m 674.8 for 2Q07 600 500 • 1H08 vs 1H07 - up 346% 400 • Key drivers : 300 331.7 increased volume; better margins; 200 higher CPO prices Kuok Group merger; and 151.3 merger synergies. 100 101.5 0 2Q07
Slide 11: Profit Before Tax by Business Segment
Profit Before Tax by Business Segment US$' million 2Q08 2Q07 1H08 1H07 Merchandising & Processing 287.1 81.6 617.7 124.1 Palm & laurics 140.0 48.6 265.7 82.5 Oilseeds & grains 147.1 33.0 352.0 41.6 Consumer Products 12.2 5.3 28.2 7.5 Plantation & Palm Oil Mills 79.6 23.5 164.8 36.1 Others 30.5 3.6 6
Slide 12: Profit Before Tax by Business Segment
Profit Before Tax by Business Segment 1H07 1H08 14.2% 41.1% 6.1% 6.6% 28.6% 2.3% 17.8% 18.0% 3.0% 3.7% 20.7% 37.9% Palm & Oilseeds and Consumer Plantations and Others Associates laurics grains Products palm oils mills * Excluding unallocated expenses/income 12
Slide 13: Merchandising & Processing - Palm & Laurics
Merchandising & Processing - Palm & Laurics 2Q08 2Q07 1H08 1H07 Revenue (US$ million) 4,786 2,212 8,909 3,334 Sales volume (‘000 MT) 4,645 3,394 9,286 5,618 Profit before tax (US$ million) 140.0 48.6 265.7 82.5 Profit before tax per MT (US$/MT) 30.13 14.31 28.61 14.68 • Higher pretax profit in 2Q08
Slide 14: Merchandising & Processing - Oilseeds and Grains
Merchandising & Processing - Oilseeds and Grains 2Q08 2Q07 1H08 1H07 Revenue (US$ million) 2,174 714 4,027 1,461 Sales volume (‘000 MT) 3,297 2,100 6,181 4,198 Profit before tax (US$ million) 147.1 33.0 352.0 41.6 Profit before tax per MT (US$/MT) 44.63 15.71 56.94 9.90 • 2Q08 &1H08 volume growth an
Slide 15: Consumer Products
Consumer Products 2Q08 2Q07 1H08 1H07 Revenue (US$ million) 1,148 84 2,602 178 Sales volume (‘000 MT) 694 154 1,562 259 Profit before tax (US$ million) 12.2 5.3 28.2 7.5 Profit before tax per MT (US$/MT) 17.58 34.66 18.04 28.83 • 2Q08 & 1H08 yoy increase in volume and pretax due to inclusion of Kuok
Slide 16: Plantation Statistics
Plantation Statistics (hectares) 2Q08 2Q07 1H08 1H07 Total planted area (hectare) 215,371 191,495 215,371 191,495 Total mature area 137,730 127,942 137,730 127,942 harvested (hectare) FFB production (MT) 686,776 395,399 1,381,461 635,382 Yield/mature hectare (MT/ha) 5.0 4.9 10.0 9.3 Mill Production
Slide 17: Plantation Age Profile
Plantation Age Profile 30 June 2008 Average Age of Palm (hectares) Up to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Land rights 75,767 27,091 64,445 34,362 13,706 215,371 Plasma 1,103 1,726 19,794 10,144 529 33,296 Programme Total 76,870 28,817 84,239 44,506 14,235 248,667 % of planted area
Slide 18: Plantation Age Profile – By Country
Plantation Age Profile – By Country 30 June 08 (hectares) Average Age of Palm Indonesia Up to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Land rights 70,671 18,961 38,261 15,980 9,375 153,248 Plasma 1,103 1,726 19,794 10,144 529 33,296 Programme Total 71,774 20,687 58,055 26,124 9,904 186,544
Slide 19: Capital Structure
Capital Structure 30 June 08 31 Dec 07 Balance Adjusted for Balance Adjusted for US$ million sheet intangibles sheet intangibles Debt/Equity (x) 0.58 1.08 0.52 1.04 - Net Debt 4,878 4,878 4,060 4,060 - Shareholders' funds 8,434 4,503 7,845 3,912 Adjusted Debt/Equity (x) 0.11 0.21 0.12 0.23 - Liquid
Slide 20: Cashflow Management
Cashflow Management 6 mths ended Year ended 30 June 08 31 Dec 07 Operating cashflow (US$ million) (278.7) (1,025.5) Turnover days - Inventory 57 56 - Trade Receivables 18 21 - Trade Payables 15 16 • Cash conversion cycle of approximately 60 days. • Operating cashflow is a function of size of operati
Slide 21: Returns & Other Indicators
Returns & Other Indicators 6 mths ended Year ended 30 June 08 31 Dec 07 Return on Average Equity 16.6% 13.3% Return on Average Capital Employed 14.9% 11.5% Return on Average Assets 7.7% 6.0% in US cents EPS (fully diluted) 10.3 12.8 NTA per share 70.5 61.3 NAV per share 132.1 122.9 * 30 June 08 retu
Slide 22: Results Summary
Results Summary 2Q08 1H08 Revenue US$7.8 bn US$15.0 bn Net Profit US$332 m US$675 m EPS US5.1 c US10.3 c As at 30 June 08 NAV per share US$1.32 Shareholders’ funds US$8.43 bn Total Assets US$19.40 bn Gearing 0.6 x 22
Slide 23: Business Update
Business Update Presenter: Mr KUOK Khoon Hong 23
Slide 24: Results Highlights
Results Highlights • Record 1H08 results: US$675 million net profit. • Most divisions of the Group performed well and achieved good profits. • High prices in 2Q08 for edible oils and oilseeds due to adverse weather in US, supply tightness from South America and high crude oil prices. • Neutral effec
Slide 25: Looking Forward
Looking Forward • Lower feedstock (palm/soybean) prices to benefit downstream businesses while reducing plantation contribution. • Good growth potential in our businesses in key producing and consuming countries: – Big increase in crude palm oil and palm kernel production benefit our refining and pa
Slide 26: Looking Forward
Looking Forward • Keep expanding plantation, manufacturing and distribution network as well as brand building. • Continue to expand in Asia and beyond. • Well positioned to capitalise on business opportunities that may arise in the current environment. 26
Slide 27: Questions & Answers
QUESTIONS & ANSWERS 27