Golden Agri-Resources Ltd · SGX:E5H
Golden Agri-Resources — H1 2018 Earnings Presentation
20 slides from Golden Agri-Resources's earnings presentation, Aug 14, 2018
Slide 1: Interim Performance Presentation, half year ended 30th June 2018
Golden Agri-Resources Ltd Golden Agri-Resources Ltd Interim Performance Presentation Full Year Second 2017 quarter Results and Performance half year ended 30th June 2018 27 February 2018 14 August 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Golden Agri-Resources Ltd. (“GAR” or “Company”) for informational purposes, and 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 b
Slide 3: Contents
Contents 1 Executive Summary 4 2 Financial Highlights 6 3 Segmental Performance 9 4 Strategy and Outlook 14 5 Appendix 18 slide 3
Slide 4: Executive Summary
Executive Summary slide 4
Slide 5: Executive Summary
Executive Summary 1H 2018 performance impacted by weaker palm oil prices and downstream margin EBITDA1 (US$ million) • 1H 2018 vs 1H 2017 265 244 Revenue US$3,676 mn 3% EBITDA US$238 mn 28% 210 197 Underlying Profit1 US$41 mn 70% Palm product output 1.32 mn MT 1% 155 CPO FOB price US$632/MT 10% 102
Slide 6: Financial Highlights
Financial Highlights slide 6
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance US$ million 1H 2018 1H 2017 YoY 2Q 2018 1Q 2018 QoQ Revenue 3,676 3,803 -3% 1,860 1,816 2% Gross Profit 468 547 -14% 220 248 -11% EBITDA 238 328 -28% 117 121 -4% Underlying Profit1 41 137 -70% 17 25 -33% Net gain/(loss) from changes in fair value of biological asse
Slide 8: Financial Position
Financial Position Prudent balance sheet with healthy gearing ratios US$ million 30-Jun-18 31-Dec-17 Change Total Assets 8,487 8,138 4% Cash and short-term investments 428 394 9% Fixed Assets1 3,715 3,692 1% Total Liabilities 4,428 4,029 10% Adjusted Net Debt2 1,782 1,684 6% Net Debt3 2,807 2,598 8%
Slide 9: Segmental Performance
Segmental Performance slide 9
Slide 10: Segmental Results: Plantations and Palm Oil Mills
Segmental Results Plantations and Palm Oil Mills Resilient EBITDA margin despite lower prices 1H 2018 1H 2017 YoY 2Q 2018 1Q 2018 QoQ Revenue (US$ million) 684 843 -19% 341 343 -0.4% EBITDA (US$ million) 197 244 -19% 102 95 8% EBITDA margin 29% 29% - 30% 28% 2% FFB Production (‘000 tonnes) 4,598 4,6
Slide 11: Plantation Area
Plantation Area GAR’s oil palm plantations continue to be leading in scale and operational excellence Mature Area - ha Planted Area - ha Age Profile as of 30 Jun 2018 14% 5% 6% 476,973 476,965 500,481 502,847 23,508 70,254 101,460 101,214 103,132 102,852 30,890 34% 375,513 375,751 397,349 399,995 17
Slide 12: Segmental Results: Palm and Lauric
Segmental Results Palm and Lauric EBITDA margin was impacted by government intervention in commodity markets 1H 2018 1H 2017 YoY 2Q 2018 1Q 2018 YoY Revenue (US$ million) 3,307 3,386 -2% 1,697 1,610 5% Sales Volume (‘000 tonnes) 4,481 4,485 -0.1% 2,319 2,162 7% EBITDA (US$ million) 45 79 -43% 20 25
Slide 13: Segmental Results: Oilseeds and Others
Segmental Results Oilseeds and Others Oilseed business results impacted by high input prices 1H 2018 1H 2017 YoY 2Q 2018 1Q 2018 QoQ Oilseeds Revenue (US$ million) 243 354 32% 99 144 -31% Sales Volume (‘000 tonnes) 404 656 -38% 176 228 -23% EBITDA (US$ million) -4.6 4.5 n.m -6.9 2.3 n.m EBITDA margi
Slide 14: Strategy and Outlook
Strategy and Outlook slide 14
Slide 15: Responsible Growth through Innovation
Responsible Growth through Innovation Driving operational transformation for responsible growth and long-term shareholders return Focus TECHNOLOGY CUSTOMER SUSTAINABILITY Goals Digital leapfrog to achieve Sustainable profit growth Responsible palm oil leadership in productivity from high margin prod
Slide 16: Growth Strategy and Outlook
Growth Strategy and Outlook Capitalising on the robust fundamentals of the industry, GAR continues to enhance its integrated operation capabilities to optimise profit opportunities across the value chain Upstream • Focus on replanting with higher-yielding seeds to sustain production growth • Continu
Slide 17: Towards Responsible Palm Oil Production
Towards Responsible Palm Oil Production Progress on Traceability to the Plantation for third-party suppliers • Full TTP for 41% of the palm supply chain (GAR-owned mills and third-party suppliers) • 50 third-party mills have started the TTP process with 16 reporting 100% TTP as of Q2 2018 • This hel
Slide 18: Appendix
Al gar agribusiness and food
Slide 19: Age Profile
Age Profile Immature and younger estates use newer-generation higher-yielding planting materials that will further boost production growth in the future Immature Young Prime 1 Prime 2 Old Total hectares (0-3 years) (4-6 years) (7-18 years) (19-25 years) (>25 years) 30 June 2018 Nucleus 21,836 26,980
Slide 20: Contact Us
Contact Us If you need further information, please contact: Golden Agri-Resources Ltd c/o 108 Pasir Panjang Road #06-00 Golden Agri Plaza Singapore 118535 Telephone : +65 65900800 Facsimile : +65 65900887 www.goldenagri.com.sg Contact Person : Richard Fung [email protected] slide 20
Golden Agri-Resources — H1 2018 Earnings Presentation on 6ix