Golden Agri-Resources Ltd · SGX:E5H
Golden Agri-Resources — FY2013 Earnings Presentation
28 slides from Golden Agri-Resources's earnings presentation, Feb 28, 2014
Slide 1: Full Year 2013 Results Performance
Golden Agri-Resources Ltd Full Year 2013 Results Performance 28 February 2014 0
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 3 2 Financial Highlights 5 3 Plantation Highlights 11 4 Downstream Highlights 16 5 Strategy and Outlook 19 6 Appendix 24 2
Slide 4: Executive Summary
1 Executive Summary Ou agribusiness and food
Slide 5: Executive Summary
Executive Summary Strong recovery in 4Q 2013 quarter-on-quarter performance. Full year results affected by weaker production and CPO prices in previous quarters. Price - US$/MT EBITDA - US$ million Output - ‘000 MT • 4Q 2013 vs 3Q 2013 results 250 1,100 Revenue $1,902 mn 21% EBITDA $201 mn 81% 1,000
Slide 6: Financial Highlights
2. Financial Highlights ~*) gar agribusiness and food
Slide 7: Financial Performance – 4Q 2013
Financial Performance – 4Q 2013 US$ million 4Q 2013 4Q 2012 YoY 3Q 2013 QoQ Change Change Revenue 1,902 1,519 25% 1,571 21% Gross Profit 425 361 18% 277 53% EBITDA 201 142 41% 111 81% Core Net Profit1 113 36 212% 38 199% Addition: • Net gain from changes in fair value of biological assets, net of ta
Slide 8: Financial Performance – FY 2013
Financial Performance – FY 2013 US$million US$ million YTD Sep 2013FYYTD 2013Sep 2012 FY 2012 ChangeChange Revenue 6,585 6,052 9% Gross Profit 1,363 1,611 -15% EBITDA 662 785 -16% Core Net Profit1 318 404 -21% Addition: Net gain from changes in fair value of biological assets, net of tax and non-c
Slide 9: Segmental Results
Segmental Results Indonesia Operations – US$ million China Operations – US$ million Revenue EBITDA Net Profit1 Revenue EBITDA Net Profit1 +10% -26% -42% +6% 5,223 458 1,362 812 1,290 60 4,762 602 264 48 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 ‐27 ‐48 A turnaround performance as a
Slide 10: Financial Position
Financial Position Balance sheet fundamentals remain strong with ample liquidity and prudent gearing (in US$ million) 31-Dec-13 31-Dec-12 Change Total Assets 14,148 13,286 6.5% Cash and Short-Term Investments 587 685 -14.4% Trade Receivables and Inventories 1,246 1,240 0.5% Fixed Assets1 10,340 9,90
Slide 11: Final Dividend
Final Dividend The Board proposes final dividend distribution of 0.515 Singapore cents per share to be approved by shareholders. Combined with interim dividend, it represents 35% of our underlying profit for FY2013. 2013 Cash Dividend 2010 2011 2012 Interim Final Total Dividend per share (in S$ cent
Slide 12: Plantation Highlights
3 Plantation Highlights ~*) gar agribusiness and food
Slide 13: Plantation Area
Plantation Area GAR’s Indonesian plantation is leading in scale and operational excellence Planted Area - ha Mature Area - ha 471,100 463,426 430,711 416,309 99,998 96,512 92,221 87,886 371,102 366,914 338,490 328,423 31‐Dec‐13 31‐Dec‐12 31‐Dec‐13 31‐Dec‐12 Nucleus Plasma Nucleus Plasma • Total 13,7
Slide 14: Planted Area Age Profile
Planted Area Age Profile GAR’s long-term growth is supported by favourable age profile of planted area underpinned by large immature and young plantations Hectarage as of 31 Dec 2013 Hectarage as of 31 Dec 2012 4% 4% 10% 9% 20,282 20% 18,511 23% 17% 40,389 47,117 94,286 20% 107,079 79,912 91,849 223
Slide 15: Production Performance
Production Performance Strong quarter-on-quarter recovery in production 4Q 2013 3Q 2013 Change FY 2013 FY 2012 Change FFB Production (‘000 tonnes) 2,631 2,293 15% 9,041 9,686 -7% Nucleus 2,006 1,768 13% 6,997 7,390 -5% Plasma 625 525 19% 2,044 2,296 -11% FFB Yield (tonne/ha) 6.1 5.3 15% 21.0 23.3 -1
Slide 16: Holistic Approach to Sustainability
Holistic Approach to Sustainability Certification as at 31 January 2014 • RSPO: 162,625 ha of plantations including smallholder plantations of 28,221 ha, 14 mills, one kernel crushing plant and two refineries • ISCC: 217,988 ha of plantations including smallholder plantations of 37,678 ha, 23 mills,
Slide 17: Downstream Highlights
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Slide 18: Leverage Downstream Assets to Optimise Value Chain
Leverage Downstream Assets to Optimise Value Chain PROCESSING Indonesia Operations China Operations CAPACITY Annual Capacity Annual Capacity Refinery: 2.3 million MT Refinery: 776,000 MT Crushing: 1.1 million MT Crushing: 2.3 million MT Oleochemical: 88,000 MT Noodle manufacturing: 5 billion packets
Slide 19: Downstream Achievements in 2013
Downstream Achievements in 2013 Expanded capacity in Indonesia Strengthening Downstream management team is for global exports: our Team fully in place Capacity • Refinery: 300,000 MT per Expansion annum • Kernel crushing plant: • Diversification of consumer 210,000 MT per annum base globally • Desti
Slide 20: Strategy and Outlook
5 Strategy and Outlook ~*) gar agribusiness and food
Slide 21: Strategic Priorities
Strategic Priorities Build on core competitive strengths and leverage scale to maximize long-term shareholder returns Objective: Sustained Growth and Profitability Upstream Downstream Sustain cost Optimise Grow Shift product To stay leadership value destination mix to higher throughout business valu
Slide 22: Upstream Operational Excellence to Sustain Growth
Upstream Operational Excellence to Sustain Growth • Target to sustain growth at 5%-10% per annum Growing Palm • R&D support to enhance best plantation management in oil palm breeding, Product harvesting, estate maintenance and milling capabilities Output • Use our high-yielding Dami seeds in our new
Slide 23: Downstream Value Chain Optimisation
Downstream Value Chain Optimisation Commercially manage our plantation output and downstream assets to capitalise on value chain optimisation opportunities Sourcing of Processing Product Sales and raw materials • Strategic locations customisation distribution Efficient logistics provide logistics Ma
Slide 24: Growth Strategy and Outlook
Growth Strategy and Outlook GAR continues to expand its operation capabilities to capitalise on the robust long-term industry outlook, best-in-class plantation management and solid financial position Upstream Growth • Expanding palm oil plantations by 20,000-30,000 hectares in 2014 through organic g
Slide 25: Appendix
6 Appendix ~*) gar agribusiness and food
Slide 26: Revenue Details
Revenue Details FY 2013 revenue of US$6.6 billion mainly from CPO and refined palm oil based products By Product By Country Soybean 4% Others 5% Soybean Oil 4% Indonesia Local Soybean Meal CPO 10% 8% 38% China Local 21% Branded Products 6% Indonesia Unbranded Export Refined Palm 69% Products 35% 25
Slide 27: Age Profile
Age Profile GAR’s long-term growth is supported by favourable age profile of planted area underpinned by large immature and young plantations Immature Young Prime Old 1 Old 2 Total (in ha) (0-3 years) (4-6 years) (7-18 years) (19-25 years) (>25 years) 31 December 2013 Nucleus 32,612 69,599 172,550 7
Slide 28: 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] 27