Golden Agri-Resources Ltd · SGX:E5H
Golden Agri-Resources — Q3 2017 Earnings Presentation
22 slides from Golden Agri-Resources's earnings presentation, Nov 14, 2017
Slide 1: Interim Performance Presentation Third quarter ended 30th September 2017
Golden Agri-Resources Ltd Interim Performance Presentation Third quarter ended 30th September 2017 14 November 2017
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 10 4 Strategy and Outlook 16 5 Appendix 20 slide 3
Slide 4: Executive Summary
Executive Summary 9) gar agribusiness and food
Slide 5: Executive Summary
Executive Summary Strong performance continues in 3Q 2017 with recovery in plantation output and robust CPO prices EBITDA1 (US$ million) • YTD Sep 2017 vs YTD Sep 2016 380 378 Revenue US$5,584 mn 10% EBITDA US$508 mn 29% Underlying Profit1 US$217 mn 80% 250 239 Palm product output 2.07 mn MT 27% CPO
Slide 6: Financial Highlights
Financial Highlights slide 6
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance US$ million 9M 2017 9M 2016 YoY 3Q 2017 3Q 2016 YoY Revenue 5,584 5,071 10% 1,782 1,836 -3% Gross Profit 836 707 18% 290 281 3% EBITDA 508 393 29% 180 165 9% Underlying Profit1 217 120 80% 79 77 3% Net gain from changes in fair value of biological assets2 4 38 -88%
Slide 8: Financial Position
Financial Position Prudent balance sheet with improving gearing ratios US$ million 30-Sep-17 31-Dec-16 Change Total Assets 8,324 8,306 0.2% Cash and short-term investments 349 355 -2% Fixed Assets1 3,694 3,891 -5% Total Liabilities 4,143 4,210 -2% Adjusted Net Debt2 1,680 1,745 -4% Net Debt3 2,775 2
Slide 9: Interim Dividend
Interim Dividend The Board declared interim dividend distribution of 0.693 Singapore cents per share, representing 30% of our underlying profit for YTD Sep 2017 Interim Cash Dividend 2013 2014 2015 2016 2017 Dividend per share (in S$ cents) 1.100 0.585 0.502 0.635 0.693 Total Dividend (in S$ million
Slide 10: Segmental Performance
Segmental Performance slide 10
Slide 11: Segmental Results Plantations and Palm Oil Mills
Segmental Results Plantations and Palm Oil Mills Substantial growth in EBITDA as palm production recovers from El Niño 9M 2017 9M 2016 YoY 3Q 2017 3Q 2016 YoY Revenue (US$ million) 1,252 978 28% 408 379 8% EBITDA (US$ million) 378 239 58% 134 90 49% EBITDA margin 30% 24% 6% 33% 24% 9% FFB Production
Slide 12: 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 Sep 2017 10% 3% 7% 472,712 466,440 486,684 488,252 47,222 13,972 101,220 98,626 102,578 102,255 36,022 37% 371,492 367,814 384,106 385,997 179
Slide 13: Segmental Results Palm and Lauric
Segmental Results Palm and Lauric Healthy EBITDA margin despite higher input prices and competitive market environment 9M 2017 9M 2016 YoY 3Q 2017 3Q 2016 YoY Revenue (US$ million) 4,913 4,425 11% 1,527 1,626 -6% Sales Volume (‘000 tonnes) 6,656 6,499 2% 2,171 2,227 -3% EBITDA (US$ million) 122 135
Slide 14: Strong Position Across the Downstream Value Chain
Strong Position Across the Downstream Value Chain Origination of Processing & Logistic Destination Market Raw Materials Product Customisation Excellence Expertise Sourcing with • Completion of second • Golden Stena Weco • Increasing presence increasing traceability: biodiesel plant near is the large
Slide 15: Segmental Results Oilseeds and Others
Segmental Results Oilseeds and Others Oilseed business maintains its positive contribution supported by prudent management 9M 2017 9M 2016 YoY 3Q 2017 3Q 2016 YoY Oilseeds Revenue (US$ million) 471 490 -4% 117 142 -18% Sales Volume (‘000 tonnes) 940 953 -1% 284 256 11% EBITDA (US$ million) 8 16 -54%
Slide 16: Strategy and Outlook
Strategy and Outlook slide 16
Slide 17: Strategic Priorities
Strategic Priorities Build on core competitive strengths and leverage scale to maximise long-term shareholder returns Sustain competitive edge through technology innovation To strengthen our position as the world’s leading palm oil plantation company Operational Be the best, Yield Cost Efficiency Ex
Slide 18: 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 19: Towards Responsible Palm Oil Production
Towards Responsible Palm Oil Production Membership in DJSI • GAR is now a member of the Dow Jones Sustainability Indices (DJSI), longest-established and most recognised global sustainability index • Only Southeast Asian palm oil company to be included in DJSI Asia- Pacific index; 1 out of only 5 Sin
Slide 20: Appendix
Appendix slide 20
Slide 21: Age Profile
Age Profile The average age of GAR’s plantations is 16 years, securing the long-term growth of its production Immature Young Prime 1 Prime 2 Old Total hectares (0-3 years) (4-6 years) (7-18 years) (19-25 years) (>25 years) 30 September 2017 Nucleus 12,614 30,984 177,895 127,823 34,790 384,106 Plasma
Slide 22: 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 22
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