Wilmar International Limited · SGX:F34
Wilmar International — FY2007 Earnings Presentation
34 slides from Wilmar International's earnings presentation, Feb 28, 2008
Slide 1: Wilmar International Limited FY2007 Results Briefing
WILMAR INTERNATIONAL LIMITED FY2007 RESULTS BRIEFING 28 FEBRUARY 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 • Introduction • FY2007 Financial Highlights • Questions & Answers 3
Slide 4: Introduction
INTRODUCTION Presenter: Mr KUOK Khoon Hong 4
Slide 5: Wilmar International
Wilmar International • 2007 has been a very eventful year for Wilmar. • We completed the merger with the Kuok Group plantation and edible oil assets and the acquisition of the IPT assets. • All divisions of the Group and joint ventures performed extremely well and achieved good profits. • Admitted t
Slide 6: FY2007 Results
FY2007 Results Net Profit US$ millions FY07 FY06 % change Q4 234.0 43.9 432.7% Full Year 580.4 215.9 168.8% • Strong demand for palm oil benefiting plantations and refining. • Strong demand for oilseed and edible oils products in China and India due to high economic growth. • Merchandising and manuf
Slide 7: Strategy Going Forward
Strategy Going Forward • Plantation & Palm Oil Mills – Expansion of oil palm hectarage in Indonesia and now Africa. – Projected 3 fold increase in plantation acreage in 10 years. • Merchandising & Processing – Palm and Laurics – Continue expansion in palm and laurics, merchandising and processing in
Slide 8: Strategy Going Forward
Strategy Going Forward • Merchandising & Processing – Oilseeds and Grains – Continue expansion of existing businesses in China, in line with growth in demand. – Expand integrated agri-business business model into other commodities such as rice and flour milling and grains merchandising. • Consumer P
Slide 9: Strategy Going Forward
Strategy Going Forward • Expansion Outside Asia Ukraine and Russia (Joint venture) – Plan to expand crushing, refining, specialty fats and consumer pack, edible oils manufacturing capacity through joint ventures. Africa (Joint venture) – Plan to develop plantations, edible oils refining and merchand
Slide 10: China & Indonesia Update
China & Indonesia Update • China – Recent government efforts an understandable reaction to contain surge in food prices. – Price intervention measures targeting profiteering and not valid cost increases. – With its high economic growth and huge population, China will continue to be a huge market for
Slide 11: FY2007 Financial Highlights
FY2007 FINANCIAL HIGHLIGHTS Presenter: Mr CHUA Phuay Hee 11
Slide 12: 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 13: Result
Result FY07 FY06* U Q3 US$195 m US$36 m 442% 9M US$346 m US$68 m 409% Q4 US$234 m US$36 m 544% Full Year US$580 m US$104 m 455% Shares 6.4 b 2.5 b 152% *Pre-merger before restatement 13
Slide 14: Merger & Restructuring – Accounting Treatments
Merger & Restructuring – Accounting Treatments Pooling of Interest Purchase Method Method Financial Pre-Merger PGEO PPBOP KOG IPT Qtr Wilmar 1Q06 Restated 2Q06 Restated 3Q06 Restated 4Q06 Restated 1Q07 Restated 2Q07 Restated 3Q07 4Q07 Included in consolidated results 14
Slide 15: Revenue
Revenue Revenue Volume US$’million ‘million MT 24.2 • 4Q07 – up 195.6% 20,000 25 • FY07 – up 134.7% 16,466 20 15,000 • Volume growth 16.1 up 50.3% 15 10,000 • Drivers 8.9 – Strong demand 10 from economic 7,016 growth 6,501 5,000 5.1 – Higher volume 5 – High commodity 2,199 prices – Kuok Group 0 0 me
Slide 16: Net Profits
Net Profits US$’million 700 642.0 • 4Q07 – up 432.7% 600 580.4 • FY07 – up 168.8% 500 • Drivers 400 – Synergies from Kuok Group 300 merger 296.0 200 234.0 – Higher margin 215.9 due to cost savings 100 – Strong demand 43.9 for our products 0 4Q06 4Q07 FY06 FY07 Excluding US$61.5 million shares grant
Slide 17: Share Grant
Share Grant • 21 million shares granted by Wilmar Holdings Pte Ltd, parent company of Wilmar International Limited, in December 2007 to long-serving staff in recognition of their past contributions in building the business. • Share grant had no impact on the Group’s cashflow and shareholders’ equity
Slide 18: Non-operating Items
Non-operating Items In US$ millions Q4FY07 FY07 Net profit 234 m 580 m Share grant charge + 62 m 296 m 642 m Revaluation of biological - 89 m 207 m 553 m assets Convertible bond issue & + 16 m 223 m 569 m merger expenses Net profit excluding above - 11 m 223 m 569 m non-operating items 18
Slide 19: Four Business Segments
Four Business Segments • Merchandising and Processing – Palm and Laurics (same as pre-merger, but now extends beyond Indonesia and Malaysia) – Oilseeds and Grains (replaces Soyabean and Soyabean Meal sub-segment) • Consumer Products (new segment) • Plantation and Palm Oil Mills (now extends to Malay
Slide 20: Quarter Revenue by Business Segment
Quarter Revenue by Business Segment 4Q06 4Q07 4.7% 2.2% 3.9% 1.7% 2.4% 19.1% 40.2% 23.4% 51.9% 50.5% Oilseeds and Consumer Plantations and Palm & laurics Others grains products palm oils mills * Before elimination of inter-segment sales 20
Slide 21: Full Year Revenue by Business Segment
Full Year Revenue by Business Segment FY06 FY07 5.1% 2.8% 4.4% 2.4% 3.0% 14.6% 41.1% 26.8% 48.1% 51.9% Oilseeds and Consumer Plantations and Palm & laurics Others grains products palm oils mills * Before elimination of inter-segment sales 21
Slide 22: Profit Before Tax by Business Segment
Profit Before Tax by Business Segment US$' million 4Q06 4Q07 FY06 FY07 Merchandising & Processing 51.6 183.7 199.4 442.5 Palm & laurics 42.4 116.7 95.1 252.5 Oilseeds & grains 9.2 67.0 104.3 190.0 Consumer Products 3.4 46.6 6.9 105.3 Plantation & Palm Oil Mills 23.5 184.8 54.9 284.6 Others 2.8 5.8 3
Slide 23: Quarter Profit Before Tax by Business Segment
Quarter Profit Before Tax by Business Segment 4Q06 4Q07 13.9% 7.0% 3.8% 1.8% 57.1% 36.5% 19.2% 8.2% 4.6% 14.6% 12.4% 21.0% Palm & Oilseeds and Consumer Plantations and Others Associates laurics grains Products palm oils mills * Excluding unallocated expenses & gain on bioasset revaluation from plant
Slide 24: Full Year Profit Before Tax by Business Segment
Full Year Profit Before Tax by Business Segment FY06 FY07 13.3% 1.9% 7.6% 1.4% 33.3% 32.2% 20.6% 13.1% 2.4% 13.4% 24.2% 36.5% Palm & Oilseeds and Consumer Plantations and Others Associates laurics grains Products palm oils mills * Excluding unallocated expenses & gain on bioasset revaluation from pl
Slide 25: Merchandising & Processing - Palm & Laurics
Merchandising & Processing - Palm & Laurics 4Q06 4Q07 FY06 FY07 Revenue (US$ million) 1,180 3,908 3,611 10,010 Sales volume (‘000 MT) 2,645 5,896 7,915 13,407 Production volume (‘000 MT) 1,825 2,642 6,121 8,763 Profit before tax (US$ million) 42.4 116.7 95.1 252.5 Profit before tax per MT (US$/MT)*
Slide 26: Merchandising & Processing - Oilseeds and Grains
Merchandising & Processing - Oilseeds and Grains 4Q06 4Q07 FY06 FY07 Revenue (US$ million) 939 1,765 3,081 5,167 Sales volume (‘000 MT) 2,437 3,033 8,135 10,834 Profit before tax (US$ million) 9.2 67.0 104.3 190.0 Profit before tax per MT (US$/MT) 3.79 22.08 12.81 17.54 • Strong 4Q07 performance due
Slide 27: Consumer Products
Consumer Products 4Q06 4Q07 FY06 FY07 Revenue (US$ million) 56 1,438 221 2,816 Sales volume (‘000 MT) 106 721 340 1,783 Profit before tax (US$ million) 3.4 46.6 6.9 105.3 Profit before tax per MT (US$/MT) 31.70 64.59 20.16 59.06 • Profits were boosted by continued cost savings from synergies of merg
Slide 28: Plantation Statistics
Plantation Statistics (hectares) 4Q06 4Q07 FY06 FY07 Total planted area 66,367 203,683 66,367 203,683 (hectare) Total mature area 55,318 129,729 55,318 129,729 harvested (hectare) FFB production (MT) 252,562 843,678 995,194 2,836,723 Yield/mature hectare 4.6 6.5 21.2 21.9 (MT/ha) Mill Production Cru
Slide 29: Plantation Statistics
Plantation Statistics • Increased FFB production due to : – bigger mature area harvested – full contribution from PPBOP • Yield for 4Q07 recovery to 6.5MT/ha • FY2007 yield to 21.9MT/ ha (FY2006 : 21.2MT/ ha) due to – continued recovery from drought in South Sumatra – better overall weather conditio
Slide 30: Plantation Age Profile
Plantation Age Profile 31-Dec-06 Average Age of Palm (hectares) Up to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Land rights 9,574 6,388 34,081 14,556 1,768 66,367 Plasma 549 528 23,314 7,741 0 32,132 Programme Total 10,123 6,916 57,395 22,297 1,768 98,499 % of planted area 10.3% 7.0% 58.3%
Slide 31: Plantation Age Profile – By Country
Plantation Age Profile – By Country 31 Dec 07 (ha) Average Age of Palm Indonesia Up to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Land rights 66,224 14,728 37,783 14,871 8,098 141,704 Plasma 891 1,088 21,610 9,649 0 33,238 Programme Total 67,115 15,816 59,393 24,520 8,098 174,942 % of plante
Slide 32: Balance Sheet and Other Highlights
Balance Sheet and Other Highlights US$ million Year ended Year ended 31 Dec 06 31 Dec 07 Equity 982 8,181 • Equity increase due Net Gearing Ratio 1.6x 0.5x to 3.85bn shares issued - Total Borrowings 1,625 5,028 for KG acquisition & - Total S/H Funds 857 7,845 IPT merger Turnover Days • No impairment
Slide 33: Result
Result US$ millions Q4FY07 FY07 Revenue $6,500 $16,466 Profit $234 $580 Share grant + US$62m $296 $642 Bioassets - US$89 m $207 $553 CB/merger + US$16 m $223 $569 Total Assets $15,500 Equity $8,200 Gearing 0.5 x 33
Slide 34: Questions & Answers
QUESTIONS & ANSWERS 34