Wilmar International Limited · SGX:F34
Wilmar International — Q1 2008 Earnings Presentation
27 slides from Wilmar International's earnings presentation, May 13, 2008
Slide 1: Wilmar International Limited 1Q08 Results Briefing
WILMAR INTERNATIONAL LIMITED 1Q08 RESULTS BRIEFING 13 MAY 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 • 1Q08 Financial Performance • Business Update • Questions & Answers 3
Slide 4: 1Q08 Financial Performance
1Q08 Financial Performance Presenter: Mr CHUA Phuay Hee 4
Slide 5: 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 6: Merger & Restructuring – Accounting Treatment
Merger & Restructuring – Accounting Treatment Pooling of Interest Purchase Method Method Financial Pre-Merger PGEO PPBOP KOG IPT Qtr Wilmar 1Q07 Restated 2Q07 Restated 3Q07 4Q07 1Q08 Included in consolidated results 6
Slide 7: Results Overview
Results Overview 1Q08 vs 1Q07 vs 4Q07 U U Revenue US$7.14 bn 261% 10% Net profit US$343 m 590% 47% Earnings per share US5.2 c 167% 43% 7
Slide 8: Revenue
Revenue Revenue Volume US$’million ‘million MT • 1Q08 vs 1Q07 10,000 8.9 10 - revenue up 261% - volume up 74% 7.5 - Key drivers : 8,000 merger with Kuok 7 Group; 7,141 higher demand & 6,000 6,501 firmer commodities 4.3 prices. 4 4,000 • 1Q08 vs 4Q07 - revenue up 10% - volume down 16% 1 2,000 - highe
Slide 9: Revenue by Business Segment
Revenue by Business Segment 1Q07 1Q08 5.2% 2.7% 4.5% 2.3% 4.4% 18.2% 35.0% 23.2% 51.7% 52.6% Oilseeds and Consumer Plantations and Palm & laurics Others grains products palm oils mills * Before elimination of inter-segment sales 9
Slide 10: Net Profit
Net Profit US$’million 500 • 1Q08 vs 1Q07 - up 590% - key drivers : 400 Kuok Group merger; merger synergies; stronger demand and 343.0 margins. 300 - up 246% on proforma net profit of US$99.2m 234.0 for 1Q07 200 • 1Q08 vs 4Q07 100 - up 47% - key drivers : margin expansion; 49.7 higher CPO prices. 0
Slide 11: Profit Before Tax by Business Segment
Profit Before Tax by Business Segment US$' million 1Q08 1Q07 Change Merchandising & Processing 330.5 42.5 678% Palm & laurics 125.7 33.9 271% Oilseeds & grains 204.8 8.6 2292% Consumer Products 16.0 2.1 650% Plantation & Palm Oil Mills 85.2 12.6 574% Others 31.2 1.0 3214% Associates 27.5 13.5 104% U
Slide 12: Profit Before Tax by Business Segment
Profit Before Tax by Business Segment 1Q07 1Q08 18.9% 47.3% 5.6% 25.6% 6.4% 1.3% 17.4% 17.6% 3.3% 2.9% 41.8% 12.0% Palm & Oilseeds and Consumer Plantations and Others Associates laurics grains Products palm oils mills * Excluding unallocated expenses/income 12
Slide 13: Merchandising & Processing - Palm & Laurics
Merchandising & Processing - Palm & Laurics 1Q08 1Q07 Revenue (US$ million) 4,123 1,121 Sales volume (‘000 MT) 4,641 2,224 Profit before tax (US$ million) 125.7 33.9 Profit before tax per MT (US$/MT)* 27.09 15.26 * Profit before tax/MT is calculated based on sales volume • Margins vary throughout th
Slide 14: Merchandising & Processing - Oilseeds and Grains
Merchandising & Processing - Oilseeds and Grains 1Q08 1Q07 Revenue (US$ million) 1,853 746 Sales volume (‘000 MT) 2,884 2,098 Profit before tax (US$ million) 204.8 8.6 Profit before tax per MT (US$/MT) 71.02 4.08 • Margins vary in line with global demand and supply of raw materials vs demand for mea
Slide 15: Consumer Products
Consumer Products 1Q08 1Q07 Revenue (US$ million) 1,454 94 Sales volume (‘000 MT) 868 105 Profit before tax (US$ million) 16.0 2.1 Profit before tax per MT (US$/MT) 18.40 20.29 • Margins determined by cost of raw materials vs selling prices. • 1Q08 yoy increase in volume and pretax due to inclusion
Slide 16: Plantation Statistics
Plantation Statistics (hectares) 1Q08 1Q07 Total planted area (hectare) 210,440 71,085 Total mature area harvested (hectare) 137,737 56,729 FFB production (MT) 694,685 239,984 Yield/mature hectare (MT/ha) 5.0 4.2 Mill Production Crude Palm Oil (MT) 337,431 182,929 Palm Kernel (MT) 78,438 43,990 Extr
Slide 17: Plantation Age Profile
Plantation Age Profile 31 Mar 08 Average Age of Palm (hectares) Up to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Land rights 70,830 27,090 64,445 34,369 13,706 210,440 Plasma 1,061 1,726 19,794 10,144 529 33,254 Programme Total 71,891 28,816 84,239 44,513 14,235 243,694 % of planted area 29.
Slide 18: Plantation Age Profile – By Country
Plantation Age Profile – By Country 31 Mar 08 (ha) Average Age of Palm Indonesia Up to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Land rights 65,868 18,960 38,261 15,987 9,375 148,451 Plasma 1,061 1,726 19,794 10,144 529 33,254 Programme Total 66,929 20,686 58,055 26,131 9,904 181,705 % of p
Slide 19: Capital Structure
Capital Structure 31 Mar 08 31-Dec-07 Balance Adjusted for Balance Adjusted for US$ million sheet intangibles sheet intangibles Debt/Equity (x) 0.5 0.9 0.5 1.0 - Net Debt 4,050 4,050 4,060 4,060 - Shareholders' funds 8,227 4,296 7,845 3,912 Adjusted Debt/Equity (x) 0.1 0.3 0.1 0.2 - Liquid working c
Slide 20: Cashflow Management
Cashflow Management 3 mths ended Year ended 31 Mar 08 31-Dec-07 Operating cashflow (US$ million) 132.2 (1,025.5) Turnover days - Inventory 55 57 - Trade Receivables 18 21 - Trade Payables 17 16 • Healthy working capital cycle • Operating cashflow is a function of size of operation and prices of comm
Slide 21: Returns & Other Indicators
Returns & Other Indicators 3 mths ended Year ended 31 Mar 08 31-Dec-07 Return on Average Equity 17.1% 13.3% Return on Average Capital Employed 14.2% 10.3% Return on Average Assets 8.3% 6.0% in US cents EPS (fully diluted) 5.2 12.8 NTA per share 67.3 61.3 NAV per share 128.8 122.9 * 31 Mar 08 returns
Slide 22: Results Summary
Results Summary 1Q08 Revenue US$7.14 bn Net Profit US$343 m EPS US5.2 c NAV per share US128.8 c Shareholders’ funds US$8.23 bn Total Assets US$17.38 bn Gearing 0.5x 22
Slide 23: Business Update
Business Update Presenter: Mr KUOK Khoon Hong 23
Slide 24: 1Q FY2008 Highlights
1Q FY2008 Highlights • Record 1Q08 results: US$343 million net profit. – Strong performance from all business segments. – Increased demand drives volume growth. • Merger: Going smoothly + lasting business synergies. • High prices, tight supply of edible oils and oilseeds. 24
Slide 25: 1Q FY2008 Highlights
1Q FY2008 Highlights • Strong demand for palm due to competitive prices and strong supply due to increased production. • Increase in export tax on palm oil in Indonesia. • Robust demand in China for our products due to strong economic growth. • Better processing margins due to industry-wide improvem
Slide 26: Expanding Horizons
Expanding Horizons • Palm oil prices expected to remain firm in the foreseeable future. • Expansion in plantation acreage in exporting and consuming countries – Indonesia and Africa. • Continue to improve infrastructure, with further investments in horizontal and vertical integration. • Maintain foc
Slide 27: Questions & Answers
QUESTIONS & ANSWERS 27