Wilmar International Limited · SGX:F34
Wilmar International — 3Q09 Earnings Presentation
27 slides from Wilmar International's earnings presentation, Nov 12, 2009
Slide 1: Wilmar International Limited 3Q09 Results Briefing
WILMAR INTERNATIONAL LIMITED 3Q09 RESULTS BRIEFING 12 NOVEMBER 2009 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 • 3Q09 Financial Performance • Risk Management • Business Update • Questions & Answers 3
Slide 4: 3Q09 Financial Performance
3Q09 Financial Performance 4
Slide 5: Results Overview
Results Overview 3Q09 vs 3Q08 US$m Revenue 6,299 -25% Net profit 653 35% Earnings per share in US cents 9.0 19% (fully diluted) 9M09 vs 9M08 US$m Revenue 16,969 -27% Net profit 1,440 24% Earnings per share in US cents 20.9 15% (fully diluted) 5
Slide 6: Revenue
Revenue Revenue Volume US$’million ‘million MT 25,000 30.0 • 3Q09 vs 3Q08 - revenue down 25% 24.2 24.8 on lower 25.0 commodities prices 20,000 - volume up 4%, marginal drop in 23,319 20.0 palm & laurics while 16,969 15,000 oilseeds & grains volume increased 15.0 • 9M09 vs 9M08 10,000 8.7 9.1 - reven
Slide 7: Revenue by Business Segment
Revenue by Business Segment 9M08 9M09 4.0% 4.1% 5.2% 3.1% Plantations & Plantations & Others Others palm oils mills palm oils mills 14.5% 14.6% Consumer Consumer products products 24.1% Oilseeds 29.0% 47.1% & grains 54.3% Palm & laurics Oilseeds Palm & laurics & grains * Before elimination of inter-
Slide 8: Net Profit
Net Profit US$’million 1,500 1,440.1 • 3Q09 vs 3Q08 - Up 35% 1,157.4 - Better profit from oilseeds & grains, consumer products and 1,000 plantations & palm oil mills - Exceptional gains from 652.9 sale of new shares in Wilmar China Ltd 482.6 500 • 9M09 vs 9M08 - Up 24% - Better profit from palm & la
Slide 9: Pretax Profit Growth by Business Segment
Pretax Profit Growth by Business Segment US$' million 3Q09 3Q08 ∆ 9M09 9M08 ∆ Merchandising & Processing 334.6 403.3 -17% 1006.4 1020.9 -1% Palm & laurics 141.5 223.5 -37% 545.3 489.2 11% Oilseeds & grains 193.1 179.8 7% 461.1 531.7 -13% Consumer Products 29.1 20.8 40% 169.0 49.0 245% Plantations &
Slide 10: Pretax Profit Breakdown – By Business Segment
Pretax Profit Breakdown – By Business Segment 3Q09 3Q08 9M09 9M08 Merchandising & Processing 63.8% 75.9% 65.1% 69.9% Palm & laurics 27.0% 42.1% 35.3% 33.5% Oilseeds & grains 36.8% 33.8% 29.8% 36.4% Consumer Products 5.6% 3.9% 10.9% 3.4% Plantations & Palm Oil Mills 21.3% 14.2% 17.8% 16.4% Others 6.0
Slide 11: (A) Plantations & Palm Oil Mills
(A) Plantations & Palm Oil Mills US$ million 3Q09 3Q08 ∆ 9M09 9M08 ∆ Revenue 292.3 317.1 -8% 792.7 1,046.7 -24% Profit before tax 111.4 75.3 48% 274.7 240.1 14% Planted area (ha) 232,334 218,644 6% 232,334 218,644 6% Mature area harvested (ha) 159,529 141,484 13% 159,529 141,484 13% FFB production (
Slide 12: Plantation Age Profile
Plantation Age Profile in hectares Average Age of Palm 30 Sept 2009 0 to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Indonesia 66,164 37,627 35,395 19,239 11,562 169,987 Malaysia 2,765 8,083 25,687 17,905 7,907 62,347 Total planted area 68,929 45,710 61,082 37,144 19,469 232,334 % of total pl
Slide 13: (B) Merchandising & Processing - Palm & Laurics
(B) Merchandising & Processing - Palm & Laurics 3Q09 3Q08 ∆ 9M09 9M08 ∆ Revenue (US$ million) 3,543 5,275 -33% 9,078 14,184 -36% Sales volume (‘000 MT) 5,254 5,283 -1% 13,784 14,569 -5% Profit before tax 141.5 223.5 -37% 545.3 489.2 11% (US$ million) Profit before tax per MT 26.9 42.3 -36% 39.6 33.6
Slide 14: (C) Merchandising & Processing – Oilseeds & Grains
(C) Merchandising & Processing – Oilseeds & Grains 3Q09 3Q08 ∆ 9M09 9M08 ∆ Revenue (US$ million) 1,964 2,257 -13% 5,589 6,284 -11% Sales volume (‘000 MT) 3,859 3,447 12% 11,061 9,628 15% Profit before tax 193.1 179.8 7% 461.1 531.7 -13% (US$ million) Profit before tax per MT 50.0 52.2 -4% 41.7 55.2
Slide 15: (D) Consumer Products
(D) Consumer Products 3Q09 3Q08 ∆ 9M09 9M08 ∆ Revenue (US$ million) 1,018 1,186 -14% 2,805 3,788 -26% Sales volume (‘000 MT) 844 765 10% 2,282 2,327 -2% Profit before tax 29.1 20.8 40% 169.0 49.0 245% (US$ million) Profit before tax per MT 34.5 27.2 27% 74.1 21.1 251% (US$/MT) • Pretax profit for 3Q
Slide 16: Low Gearing
Low Gearing As at As at US$ million 30 Sept 09 31 Dec 08 Debt/Equity (x) 0.34 0.25 - Net Debt 3,580 2,390 - Shareholders' funds 10,535 9,606 Adjusted Debt/Equity (x) 0.09 0.10 - Liquid working capital * 2,631 1,407 - Adjusted Net Debt 949 983 Interest coverage (x) # 40.4 7.6 * Liquid working capital
Slide 17: Robust Funding & Strong Liquidity
Robust Funding & Strong Liquidity As at 30 Sept 09 US$ million Available Utilised Balance Credit facilities : Committed 1,365 1,220 145 Trade finance 13,457 7,173 6,284 Short term 884 239 645 Total credit facilities 15,706 8,632 7,074 Available free cash 1,429 Total liquidity 8,503 • 83% of utilised
Slide 18: Strong Cashflow
Strong Cashflow 9 mths ended Year ended 30 Sept 09 31 Dec 08 Operating cashflow (US$ million) 55 3,231 Turnover days - Inventory 51 43 - Trade Receivables 25 16 - Trade Payables 17 14 • Lower operating cashflow due to higher working capital requirement as a result of higher commodities prices • Cash
Slide 19: Key Indicators
Key Indicators 9 mths ended Year ended 30 Sept 09 * 31 Dec 08 Return on Average Equity 19.1% 17.5% Return on Average Capital Employed 17.4% 15.7% Return on Average Assets 9.6% 9.2% in US cents EPS (fully diluted) 20.9 24.0 NTA per share 102.9 88.7 NAV per share 165.0 150.4 in Singapore cents Dividen
Slide 20: Results Summary
Results Summary US$ million 9M09 9M08 Revenue 16,969 23,319 -27% Net Profit 1,440 1,157 24% EPS in US cents (fully diluted) 20.9 18.1 15% US$ million 30 Sept 09 31 Dec 08 Shareholders’ funds 10,535 9,606 10% NAV per share in US cents 165.0 150.4 10% Total Assets 22,016 17,869 23% Gearing 0.34x 0.25x
Slide 21: Risk Management
Risk Management 21
Slide 22: Risk Management
Risk Management Commodities Credit Risk Price Risk Risk Governance Structure Foreign Exchange Interest Rate Risk Risk 22
Slide 23: Risk Governance Structure
Risk Governance Structure Board-level Risk Management Committee (RMC) - Chaired by Lead Independent Director - Oversees ERC Independent - Reviews overall risk management guidelines/ Middle Office framework, policies & systems - Captures and - Reviews & approves enterprise risk limits/ measures Group
Slide 24: Business Update
Business Update = = Fl ee Z 4 f 1 eeo 8s sac
Slide 25: Shareholding Structure
Shareholding Structure (Post WHPL Liquidation) As at Post 30 Sept 2009 Liquidation Kuok Group 31.2% 31.2% The liquidation exercise will increase the WHPL 29.4% -* liquidity and free float of Wilmar shares. Possible ADM 10.4%** 16.1% weighting increase in major stock indices. Currently Public 17.7% 2
Slide 26: Looking Forward
Looking Forward • Optimistic about current year’s prospects • Resilient global demand for food & agri commodities • Positive growth prospects for emerging markets • Growing demand for high quality processed agricultural and consumer products due to rising affluence & rapid urbanisation in China • Wi
Slide 27: Questions & Answers
Questions & Answers 27