Wilmar International Limited · SGX:F34
Wilmar International — 2Q09 Earnings Presentation
27 slides from Wilmar International's earnings presentation, Aug 14, 2009
Slide 1: Wilmar International Limited 2Q09 Results Briefing
WILMAR INTERNATIONAL LIMITED 2Q09 RESULTS BRIEFING 14 AUGUST 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 • 2Q09 Financial Performance • Risk Management • Business Update • Questions & Answers 3
Slide 4: 2Q09 Financial Performance
2Q09 Financial Performance 4
Slide 5: Results Overview
Results Overview 2Q09 vs 2Q08 US$m Revenue 5,712 -27% Net profit 407 23% Earnings per share in US cents 6.4 23% (fully diluted) 1H09 vs 1H08 US$m Revenue 10,670 -29% Net profit 787 17% Earnings per share in US cents 12.3 17% (fully diluted) 5
Slide 6: Revenue
Revenue Revenue Volume US$’million ‘million MT • 2Q09 vs 2Q08 20,000 18.0 - revenue down 27% 15.5 15.7 on lower commodities 15.0 prices - volume up 4%, 15,000 marginal drop in palm 14,971 12.0 & laurics while oilseeds & grains 8.2 volume increased 10,000 7.9 10,670 9.0 • 1H09 vs 1H08 7,830 6.0 - rev
Slide 7: Revenue by Business Segment
Revenue by Business Segment 1H08 1H09 4.4% 4.1% 5.3% Plantations & Others 2.6% Plantations & palm oils mills Others palm oils mills 15.6% 14.8% Consumer Consumer products products 24.1% Oilseeds 30.0% 45.8% & grains 53.3% Oilseeds Palm & laurics Palm & laurics & grains * Before elimination of inter-
Slide 8: Net Profit
Net Profit US$’million 800 • 2Q09 vs 2Q08 787.1 - up 23% 700 - better margins for palm 674.8 & laurics and consumer 600 products as well as stronger plantation profit 500 • 1H09 vs 1H08 400 - up 17% 407.2 - better margins for palm 300 331.7 & laurics and consumer products 200 100 0 2Q08 2Q09 1H08 1H
Slide 9: Pretax Profit Growth by Business Segment
Pretax Profit Growth by Business Segment US$' million 2Q09 2Q08 ∆ 1H09 1H08 ∆ Merchandising & Processing 286.5 287.1 0% 671.8 617.7 9% Palm & laurics 187.6 140.0 34% 403.8 265.7 52% Oilseeds & grains 98.9 147.1 -33% 268.0 352.0 -24% Consumer Products 61.8 12.2 407% 139.9 28.2 397% Plantations & Palm
Slide 10: Pretax Profit Breakdown – By Business Segment
Pretax Profit Breakdown – By Business Segment US$' million 2Q09 2Q08 1H09 1H08 Merchandising & Processing 57.7% 65.5% 65.7% 66.5% Palm & laurics 37.8% 31.9% 39.5% 28.6% Oilseeds & grains 19.9% 33.6% 26.2% 37.9% Consumer Products 12.4% 2.8% 13.7% 3.0% Plantations & Palm Oil Mills 20.2% 18.2% 16.0% 17
Slide 11: (A) Plantations & Palm Oil Mills
(A) Plantations & Palm Oil Mills US$ million 2Q09 2Q08 ∆ 1H09 1H08 ∆ Revenue 289.4 371.8 -22% 500.4 729.5 -31% Profit before tax 100.7 79.6 26% 163.3 164.8 -1% Planted area (ha) 229,439 215,371 7% 229,439 215,371 7% Mature area harvested (ha) 151,877 137,730 10% 151,877 137,730 10% FFB production (M
Slide 12: Plantation Age Profile
Plantation Age Profile in hectares Average Age of Palm 30 June 2009 0 to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Indonesia 65,326 35,652 35,292 19,343 11,560 167,173 Malaysia 3,001 7,766 25,687 17,906 7,906 62,266 Total planted area 68,327 43,418 60,979 37,249 19,466 229,439 % of total pl
Slide 13: (B) Merchandising & Processing - Palm & Laurics
(B) Merchandising & Processing - Palm & Laurics 2Q09 2Q08 ∆ 1H09 1H08 ∆ Revenue (US$ million) 3,174 4,786 -34% 5,534 8,909 -38% Sales volume (‘000 MT) 4,609 4,645 -1% 8,530 9,286 -8% Profit before tax 187.6 140.0 34% 403.8 265.7 52% (US$ million) Profit before tax per MT 40.7 30.1 35% 47.3 28.6 65%
Slide 14: (C) Merchandising & Processing – Oilseeds & Grains
(C) Merchandising & Processing – Oilseeds & Grains 2Q09 2Q08 ∆ 1H09 1H08 ∆ Revenue (US$ million) 1,837 2,174 -16% 3,625 4,027 -10% Sales volume (‘000 MT) 3,607 3,297 9% 7,202 6,181 17% Profit before tax 98.9 147.1 -33% 268.0 352.0 -24% (US$ million) Profit before tax per MT 27.4 44.6 -39% 37.2 56.9
Slide 15: (D) Consumer Products
(D) Consumer Products 2Q09 2Q08 ∆ 1H09 1H08 ∆ Revenue (US$ million) 861 1,148 -25% 1,787 2,602 -31% Sales volume (‘000 MT) 704 694 1% 1,438 1,562 -8% Profit before tax 61.8 12.2 407% 139.9 28.2 397% (US$ million) Profit before tax per MT 87.8 17.6 399% 97.3 18.0 440% (US$/MT) • Pretax profit for 2Q0
Slide 16: Low Gearing
Low Gearing As at As at US$ million 30 Jun 09 31 Dec 08 Debt/Equity (x) 0.39 0.25 - Net Debt 3,948 2,390 - Shareholders' funds 10,032 9,606 Adjusted Debt/Equity (x) 0.10 0.10 - Liquid working capital * 2,978 1,407 - Adjusted Net Debt 970 983 Interest coverage (x) # 15.0 7.6 * Liquid working capital
Slide 17: Robust Funding & Strong Liquidity
Robust Funding & Strong Liquidity As at 30 Jun 09 US$ million Available Utilised Balance Credit facilities : Committed 1,750 1,606 144 Trade finance 10,823 5,844 4,979 Short term 764 235 529 Total credit facilities 13,337 7,685 5,652 Available cash (not pledged) 1,603 Total liquidity 7,255 • 76% of
Slide 18: Strong Cashflow
Strong Cashflow 6 mths ended Year ended 30 Jun 09 31 Dec 08 Operating cashflow (US$ million) (745) 3,231 Turnover days - Inventory 61 43 - Trade Receivables 24 16 - Trade Payables 20 14 • Negative operating cashflow due to higher working capital requirement • Inventories rose US$1.1b due to rising c
Slide 19: Key Indicators
Key Indicators 6 mths ended Year ended 30 Jun 09 * 31 Dec 08 Return on Average Equity 16.0% 17.5% Return on Average Capital Employed 14.6% 15.7% Return on Average Assets 8.2% 9.2% in US cents EPS (fully diluted) 6.4 24.0 NTA per share 95.0 88.7 NAV per share 157.1 150.4 in Singapore cents Dividends
Slide 20: Results Summary
Results Summary US$ million 1H09 1H08 Revenue 10,670 14,971 -29% Net Profit 787 675 17% EPS in US cents (fully diluted) 12.3 10.6 17% US$ million 30 Jun 09 31 Dec 08 Shareholders’ funds 10,032 9,606 4% NAV per share in US cents 157.1 150.4 4% Total Assets 20,677 17,869 16% Gearing 0.39x 0.25x 56% 20
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 (Post WHPL Liquidation)
Shareholding Structure (Post WHPL Liquidation) As at Post 30 June 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 • Improving global economic environment • 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 • Wilmar
Slide 27: Questions & Answers
Questions & Answers 27