Wilmar International Limited · SGX:F34
Wilmar International — Q3 2011 Earnings Presentation
27 slides from Wilmar International's earnings presentation, Nov 9, 2011
Slide 1: Financial Statement and Related Announcement
FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT Page 1 of 1 THIRD QUARTER 2011 RESULTS - BRIEFING PRESENTATION SLIDES * FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT * Asterisks denote mandatory information Name of Announcer * WILMAR INTERNATIONAL LIMITED Company Registration No. 199904785Z Announcement
Slide 2: Wilmar International Limited 3Q2011 Results Briefing
WILMAR INTERNATIONAL LIMITED 3Q2011 RESULTS BRIEFING 9 NOVEMBER 2011 1
Slide 3: 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 4: Presentation Overview
PRESENTATION OVERVIEW • 3Q11 Financial Performance • Risk Management • Business Update • Questions & Answers 3
Slide 5: Results Overview
Results Overview 3Q11 vs 3Q10 US$m Revenue 13,095 69% Net profit 321 24% Earnings per share in US cents 5.0 28% (fully diluted) Net profit – excl exceptionals 442 157% 9M11 vs 9M10 US$m Revenue 33,191 56% Net profit 1,101 10% Earnings per share in US cents 17.2 10% (fully diluted) Net profit – excl
Slide 6: Exceptional Items
Exceptional Items In US$ million 3Q11 3Q10 9M11 9M10 Foreign exchange (loss)/gain arising from (75.9) 16.2 (35.6) 0.2 intercompany loans to subsidiaries Net (loss)/gain from investment securities (71.0) 69.0 (75.0) 66.5 Changes in the fair value of derivatives (9.0) 8.1 (83.4) (26.4) embedded in con
Slide 7: Revenue
Revenue Revenue Volume 3Q11 vs 3Q10 US$ million million MT - revenue up 69% on 28.6 28.8 higher volume, 35,000 30.0 commodities prices 33,191 and Sugar 30,000 contribution 25.0 - volume up for all business segments 25,000 20.0 9M11 vs 9M10 20,000 21,289 − revenue up 56% on 15.0 higher commodities 15
Slide 8: Net Profit
Net Profit US$ million 3Q11 vs 3Q10 1,250 - Net profit up 24%. 1,228.8 Ex-exceptionals up 157% - Recovery in Oilseeds & 1,100.8 1,000 Grains and profit in Sugar 1,005.4 - Profit growth in Palm & 968.5 Laurics and Plantations & Palm Oil Mills 750 - Lower margins in Consumer Products 9M11 vs 9M10 500
Slide 9: Profit Before Tax by Business Segment
Profit Before Tax by Business Segment US$' million 3Q11 3Q10 ∆ 9M11 9M10 ∆ Merchandising & Processing 270.5 112.7 140% 898.6 718.7 25% Palm & laurics 170.8 149.8 14% 477.4 428.0 12% Oilseeds & grains 99.7 (37.1) n.m. 421.2 290.7 45% Consumer Products 14.4 34.4 -58% 52.1 112.3 -54% Plantations & Palm
Slide 10: Pretax Profit Breakdown by Business Segment
Pretax Profit Breakdown by Business Segment 3Q11 3Q10 9M11 9M10 Merchandising & Processing 59.9% 35.0% 59.4% 56.4% Palm & laurics 37.8% 46.5% 31.6% 33.6% Oilseeds & grains 22.1% -11.5% 27.8% 22.8% Consumer Products 3.2% 10.7% 3.5% 8.8% Plantations & Palm Oil Mills 29.0% 35.2% 23.7% 20.0% Sugar 12.7%
Slide 11: Merchandising & Processing – Palm & Laurics
Merchandising & Processing – Palm & Laurics 3Q11 3Q10 ∆ 9M11 9M10 ∆ Revenue (US$ million) 6,551 4,208 56% 17,442 11,666 50% Sales volume (‘000 MT) 5,846 5,033 16% 14,962 15,037 -1% Profit before tax 170.8 149.8 14% 477.4 428.0 12% (US$ million) Profit before tax per MT 29.2 29.8 -2% 31.9 28.5 12% (U
Slide 12: Merchandising & Processing – Oilseeds & Grains
Merchandising & Processing – Oilseeds & Grains Oilseeds & Grains 3Q11 3Q10 ∆ 9M11 9M10 ∆ Revenue (US$ million) 3,508 2,467 42% 8,844 7,197 23% Sales volume (‘000 MT) 5,659 4,931 15% 13,789 13,541 2% Profit before tax 99.7 (37.1) n.m. 421.2 290.7 45% (US$ million) Profit before tax per MT 17.6 (7.5)
Slide 13: Consumer Products
Consumer Products 3Q11 3Q10 ∆ 9M11 9M10 ∆ Revenue (US$ million) 1,970 1,356 45% 4,977 3,284 52% Sales volume (‘000 MT) 1,260 1,092 15% 3,219 2,644 22% Profit before tax 14.4 34.4 -58% 52.1 112.3 -54% (US$ million) Profit before tax per MT 11.4 31.5 -64% 16.2 42.5 -62% (US$/MT) • Sales volume was up
Slide 14: Plantations & Palm Oil Mills
Plantations & Palm Oil Mills US$ million 3Q11 3Q10 ∆ 9M11 9M10 ∆ Revenue 459.1 400.3 15% 1,380.3 987.8 40% Profit before tax 131.0 113.5 15% 357.8 255.2 40% Planted area (ha) 248,110 237,186 5% 248,110 237,186 5% Mature area harvested (ha) 207,345 187,245 11% 207,345 187,245 11% FFB production (MT)
Slide 15: Plantation Age Profile
Plantation Age Profile in hectares Average Age of Palm 30 September 2011 0 to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Indonesia 26,409 75,138 42,369 16,531 23,261 183,708 Malaysia 2,193 5,608 18,336 18,153 15,440 59,730 Africa 893 573 1,746 3 1,457 4,672 Total planted area 29,495 81,319 6
Slide 16: Sugar - Milling
Sugar - Milling 3Q11 3Q10 ∆ 9M11 9M10 ∆ Revenue (US$ million) 533 - n.m. 759 - n.m. Sales volume (‘000 MT) 1,255 - n.m. 1,599 - n.m. Profit before tax 56.0 - n.m. -16.2 - n.m. (US$ million) Excluding exceptionals : Profit before tax from 93.4 - n.m. -19.7 - n.m. operations (US$ million) Profit befor
Slide 17: Sugar - Refining
Sugar - Refining 3Q11 3Q10 ∆ 9M11 9M10 ∆ Revenue (US$ million) 773 - n.m. 1,568 - n.m. Sales volume (‘000 MT) 976 - n.m. 1,891 - n.m. Profit before tax 1.2 - n.m. 59.0 - n.m. (US$ million) Excluding exceptionals : Profit before tax from 35.0 - n.m. 52.0 - n.m. operations (US$ million) Profit before
Slide 18: Cashflow
Cashflow US$ million 9M11 FY10 Operating cashflow 993 (2,319) Less : Investment in subsidiaries and associates (198) (1,679) Capital expenditure (1,047) (1,064) Net proceeds from bank borrowings 2,498 5,835 Other deposits with financial institutions (811) (729) Others (incl. dividends) (327) (36) --
Slide 19: Gearing
Gearing As at As at US$ million 30 Sep 11 31 Dec 10 Debt/Equity (x) 0.96 0.90 - Net Debt 12,261 10,637 - Shareholders' funds 12,801 11,856 Adjusted Debt/Equity (x) 0.42 0.38 - Liquid working capital * 6,869 6,095 - Adjusted Net Debt 5,392 4,543 Interest coverage (x) # 7.0 23.0 * Liquid working capit
Slide 20: Funding & Liquidity
Funding & Liquidity As at 30 Sep 11 US$ million Available Utilised Balance Credit facilities : Committed 5,268 5,095 173 Trade finance 25,983 16,317 9,666 Short term 624 454 170 Total credit facilities 31,875 21,866 10,009 Cash & cash equivalents 1,509 Total liquidity 11,518 • 75% of utilised facili
Slide 21: Key Indicators
Key Indicators 9 mths ended Year ended 30 Sep 11 31 Dec 10 Return on Average Equity * 11.9% 11.6% Return on Average Capital Employed * 8.8% 8.8% Return on Average Assets * 4.2% 5.1% in US cents EPS (fully diluted) 17.2 20.7 NTA per share 131.2 116.5 NAV per share 200.0 185.3 in Singapore cents Divid
Slide 22: Risk Management
Risk Management 21
Slide 23: Risk Management
Risk Management Commodities Credit Risk Price Risk Risk Governance Structure Foreign Exchange Interest Rate Risk Risk 22
Slide 24: Risk Governance Structure
Risk Governance Structure Board-level Risk Management Committee (RMC) - Chaired by Lead Independent Director Independent - Oversees ERC Middle Office - Reviews overall risk management guidelines/ - Captures and framework, policies & systems measures Group- - Reviews & approves enterprise risk limits
Slide 25: Business Update
Business Update 24
Slide 26: Prospects
Prospects • The Group remains positive of its prospects, despite uncertainties in the global economy, due to the resilience in the demand for agricultural commodities and the continued growth of Asian economies • Favourable industry-specific trends and developments are expected to further benefit th
Slide 27: Questions & Answers
Questions & Answers 26