Interim Performance Presentation - Beranda...Interim Performance Presentation YTD Mar 2013 :...
Transcript of Interim Performance Presentation - Beranda...Interim Performance Presentation YTD Mar 2013 :...
Interim Performance PresentationYTD Mar 2013 : three-month period ended 31st March 2013YTD Mar 2013 : three month period ended 31 March 2013
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13 May 2013
DisclaimerDisclaimerThis presentation has been prepared by Golden Agri-Resources Ltd. (“GAR” or “Company”) for informationalpurposes, and may contain projections and forward looking statements that reflect the Company’s currentviews with respect to future events and financial performance. These views are based on currentassumptions which are subject to various risks and which may change over time. No assurance can begiven that future events will occur, that projections will be achieved, or that the Company’s assumptions arecorrect. Actual results may differ materially from those projected. A prospective investor must make its ownindependent decision regarding investment in securities.
Opinions expressed herein reflect the judgement of the Company as of the date of this presentation andmay be subject to change without notice if the Company becomes aware of any information, whetherspecific to the Company, its business, or in general, which may have a material impact on any suchopinions.
f fThe information is current only as of its date and shall not, under any circumstances, create any implicationthat the information contained therein is correct as of any time subsequent to the date thereof or that therehas been no change in the financial condition or affairs of GAR since such date. This presentation may beupdated from time to time and there is no undertaking by GAR to post any such amendments orsupplements on this presentation.supplements on this presentation.
The Company will not be responsible for any consequences resulting from the use of this presentation aswell as the reliance upon any opinion or statement contained herein or for any omission.
© Golden Agri-Resources Ltd. All rights reserved.
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© Golden Agri Resources Ltd. All rights reserved.
Table of Contents
Section 1 Executive Summary 3
Table of Contents
Section 2 Financial Highlights 5
Pl t ti Hi hli ht 9Section 3 Plantation Highlights 9
Section 4 Downstream Highlights 15
Section 5 Strategy and Outlook 18
Section 6 Appendix 23
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Section 1
Executive Summary
Executive SummaryExecutive Summary
Strong quarter-on-quarter EBITDA (US$ million)
Price (US$/MT)O t t (‘000 MT)
1,1001,2001,300
240
280
320performance despite seasonally lower production
EBITDA (US$ million) Output (‘000 MT)
Revenue $1,430 mn 6%
EBITDA $211 mn 48%
Net Profit1 $113 mn 176% 700800900
1,000
120
160
200
Net Profit $113 mn 176%
Palm products output 664,000 MT 22%
CPO FOB price $797/MT 4% 400
500600
0
40
80
0 0 0 0 1 1 1 1 2 2 2 2 3
1Q1
2Q1
3Q1
4Q1
1Q1
2Q1
3Q1
4Q1
1Q1
2Q1
3Q1
4Q1
1Q1
EBITDA CPO FOB Price Palm Products Output
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Note:1. Net profit attributable to owners of the Company, excluding net effect of net gain from changes in fair value of biological assets and exceptional items, to conform to the first quarter’s
presentation for comparison purpose only
Section 2
Financial Highlights
Financial Performance
US$ million 1Q 2013 4Q 2012 QoQ 1Q 2012 YoYChange Change
Financial Performance
Revenue 1,430 1,519 -6% 1,519 -6%Gross Profit 357 361 -1% 454 -21%EBITDA 211 142 48% 252 17%
Change Change
EBITDA 211 142 48% 252 -17%Interest on borrowings -23 -21 9% -15 51%Depreciation and amortisation -31 -32 -3% -27 15%Foreign exchange gain, net 5 5 14% 1 677%g g g , % %
Net Profit attributable to owners of the Company1 113 41 176% 162 -30%
1Q 2013 EBITDA :• Stronger quarter-on-quarter mainly attributable to the performance improvement of China Operations, sell
down of inventory and lower operating expenses, offsetting the seasonally lower production• Lower compared to 1Q 2012, mostly due to weaker CPO FOB prices by 25%
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Note:1. 4Q 2012 figure was represented to exclude the net effect of net gain from changes in fair value of biological assets and exceptional items, to conform to the first quarter’s presentation for
comparison purpose only
Segmental ResultsSeg e ta esu ts
US$ million Indonesia Operations China Operations1Q 2013 4Q 2012 Change 1Q 2013 4Q 2012 Change
Revenue 1,118 1,179 -5% 312 340 -8%
Gross Profit 338 373 -9% 19 -12 n.m.
1Q 2013 4Q 2012 Change 1Q 2013 4Q 2012 Change
Gross Profit Margin 30% 32% -2% 6% -4% 10%
EBITDA 202 163 24% 9 -21 n.m.
EBITDA M i 18% 14% 4% 3% 6% 9%EBITDA Margin 18% 14% 4% 3% -6% 9%
Net Profitattributable to ownersof the Company1 107 64 68% 6 -23 n mof the Company 107 64 68% 6 23 n.m.
Indonesia Operations: Stronger performance quarter-on-quarter with lower inventory and lower operating expensesChi O ti I i f lt f t t t th i
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China Operations: Improving performance as a result of management team strengthening
Note:1. 4Q 2012 figure was represented to exclude the net effect of net gain from changes in fair value of biological assets and exceptional items, to conform to the first quarter’s presentation for
comparison purpose only
Financial PositionFinancial Position
Strong balance sheet position with low gearing
(in US$ million) 31-Mar-13 31-Dec-12 Change
Total Assets 13,332 13,286 0%
Cash and Short-Term Investments 650 685 -5%Cash and Short Term Investments 650 685 5%Trade Receivables and Inventories 1,099 1,240 -11%Fixed Assets1 9,978 9,907 1%
Total Liabilities 4,600 4,668 -1%
Interest Bearing Debts 1,832 1,855 -1%
Total Equity Attributable to Owners of the Company 8,639 8,527 1%
Net Debt2/Equity3 Ratio 0.14x 0.14xNet Debt /Equity Ratio 0.14x 0.14xNet Debt2/Total Assets 0.09x 0.09xNet Debt2/EBITDA4 1.40x 1.49xEBITDA/Interest 9.06x 10.40x
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Notes:1. Includes Biological Assets, Property, Plant and Equipment, and Investment Properties2. Interest bearing debts less cash and short-term investments3. Equity attributable to owners of the Company4. 31 Mar 2013 figure is based on annualised EBITDA
Section 3
Plantation Highlights
Plantation Area
(in ha) 31 Mar 31 Mar 31 Mar 2012/2013 31 Dec
GAR is the largest Indonesian plantation company with integrated operations
Plantation Area
(in ha) 31 Mar 31 Mar 31 Mar 2012/2013 31 Dec2013 2012 % increase 2012
Planted Area 464,251 455,848 1.8% 463,426Nucleus 367 317 360 703 1 8% 366 914Nucleus 367,317 360,703 1.8% 366,914Plasma 96,934 95,145 1.9% 96,512
Mature Area 435 236 420 477 3 5% 416 309Mature Area 435,236 420,477 3.5% 416,309Nucleus 343,898 332,565 3.4% 328,423Plasma 91,338 87,912 3.9% 87,886
• Larger mature area of approximately 19,000 hectares contributing more fruit production in the first quarter 2013
• Total 2,500 hectares of new planting and replanting
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• In Dec 2012, we announced the acquisition of approximately 16,000 hectares of mature oil palm plantations in Indonesia, which is expected to complete in the second half of 2013.
Total Planted Area by Age ProfileTotal Planted Area by Age Profile
GAR’s long-term growth is supported by favourable age profile of planted area underpinned by large immature and young plantations
1Q 2013 1Q 2012
6%5% 4%
29,015
80,095108 278
22,184 6%5%
23% 17%
20%
8%4%
21%35,371
91,891 95,224
21,186
80,095
224,679
108,278 20%
212,176
49%47%
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Notes:1. Total planted area, including plasma 2. As of 31 Mar 2013, average age of plantations, including plasma, is 14 years
Production Performance1Q 2013 FFB and palm product production improved year-on-year
1Q 2013 1Q 2012 % increase
Production Performance
FFB Production (tonnes) 2,149,290 1,994,471 8%Nucleus 1,685,889 1,524,215 11%
1Q 2013 1Q 2012 % increase(decrease)
Plasma 463,401 470,256 -1%FFB Yield (tonne/ha) 4.94 4.74 4%
Palm Product Production (tonnes) 664,249 618,406 7%CPO 539,051 500,423 8%CPO 539,051 500,423 8%PK 125,198 117,983 6%
Oil Extraction Rate 23.18% 23.61% -0.43%Kernel Extraction Rate 5.38% 5.57% -0.19%Palm Product Yield (tonne/ha) 1 41 1 38 2%Palm Product Yield (tonne/ha) 1.41 1.38 2%
• 1Q 2013 FFB and palm product production increased year-on-year in line with larger hectarage of mature estates
• Oil extraction rate was lower than prior year but continued to improve quarter-on-quarter
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Oil extraction rate was lower than prior year but continued to improve quarter on quarter
Production TrendProduction TrendFor the past 10 years, GAR’s palm product output has been consistently increasing supported by organic growth as well as acquisitions
30002640
2,911(‘000 MT)
00
2000
2500
1433
1,7941,666
2,0731,9671,890
2,347 2,273
2,640
500
1000
1500 1,433
618 664
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Q 2012
Q 2013
131Q 1QCPO PK
Note:1. 2010 output declined due to unfavourable weather conditions
Holistic Approach to Sustainabilitypp y
Certification Updates• In addition to Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability and Carbon
C tifi ti (ISCC) GAR h l i d it fi t I d i S t i bl P l Oil (ISPO) tifi tiCertification (ISCC), GAR has also received its first Indonesian Sustainable Palm Oil (ISPO) certification for 9,721 ha of plantations and one mill in Riau in December 2012.
High Carbon Stock Forest Conservation Pilot Project• On 13 March 2013, GAR and SMART announced the implementation of a High Carbon Stock (HCS) forest
conservation pilot project in PT Kartika Prima Cipta (PT KPC), West Kalimantan. Besides PT KPC, HCS forests in seven other concessions will also be conserved.
• Purpose of the pilot:• To address challenges such as the current legal framework for successful HCS forest conservation;• To develop solutions involving communities, government and industry to conserve HCS land; and• To be catalyst for multi-stakeholder engagement process to establish a framework for successful
HCS forest conservation by the broader palm oil industry.• To be successful in HCS forest conservation, GAR cannot do this alone. Together, the Team (GAR,
SMART, The Forest Trust and Greenpeace) seeks to rally all stakeholders to identify HCS areas, develop an enabling legal framework for HCS conservation, and implement measures to conserve HCS.
• The pilot is expected to take 12 months. GAR will provide timely reports on the progress.
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p p p y p p g
Section 4
Downstream Highlights
Expanding Downstream Capacity in IndonesiaIndonesia
• 1Q 2013 total branded sales (domestic and export) volume increased by 19% year-on-year
Expanding Indonesia downstream production base for global exports
• Refining capacity expansion supported by:• Growing palm products output from our plantations• Export tax scheme favouring refined products• Government target to allow only packaged cooking oil in Indonesia by 2015
• Improved logistics infrastructure through increased bulking and warehousing capacity as well as owned port and jetties
• Our prominent cooking oil brands, Filma and Kunci Mas, are among the leaders in Indonesia t d b ti id ith h d d f di t ib t d th d f t il
Our Brands
supported by nation-wide coverage with hundreds of distributors and thousands of retailers
160018002000
00 M
T)
600800
1000
12001400
ual C
apac
ity ('
00 Kernel crushingcapacity
R fi it
16
0200400
2009 2010 2011 2012 1Q 2013
Annu Refinery capacity
Strengthening Downstream Business in ChinaChina
Strengthening of the management team showing positive impact in China as one of the largest and fastest growing edible oils consumers
Tianjin
GAR strategically strengthen its presence in China by:• Developing distribution channels to enter new areas in
China• Achieve competitive raw material cost by exploring
ZhuhaiNingbo
Tianjin• Achieve competitive raw material cost by exploring strategic sourcing opportunities
• Enhance relationships with end customers by providing additional services
• Actively manage flexible production to optimise profits Zhuhaiy g p p p• Pursuing value-added products such as specialty fats Oilseeds facilities
Food facilities
Facilities Annual CapacityRefining 776,000 MT
Crushing 2.3 million MT
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Noodle Manufacturing 5 billion packets
Section 5
Strategy and Outlook
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Strategic Prioritiesg
Build on core competitive strengths and leverage scale to maximize long-term shareholder returns
Objective: Sustained Growth and Profitability
Upstream Downstream• Optimise value throughout the chain supported
• To become the world largest oil palm plantation company in terms of planted area through green field and acquisitions
• Sustain cost leadership through operational excellence best in class plantation
p g ppby prudent risk management
• Grow destination business by extending distribution and processing reach to key consuming countries
• Shift product mix to higher value addedexcellence, best-in-class plantation management and highest yielding seeds
• Shift product mix to higher value-added products, including oleochemicals, through innovation and customer solutions
Continued strong commitment to environmental and social responsibility
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Continued strong commitment to environmental and social responsibility
Downstream Value Chain Optimisation
Capitalise on our unique advantage of having own large CPO production and close access to third party plantations …
CANADA
UKNETHERLAND East EUUS
PAKISTAN
TURKEY
GERMANY
EGYPT
AsiaSouth Asia
Africa
Middle East
465
10
9
0
128
11CPO input
Trade flows
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… to grow our globally diversified customer base via distribution, branding, merchandising, destination processing and shipping
Downstream Value Chain Optimisation
Commercially manage our plantation output and downstream assets to capitalise on value chain optimisation opportunities
Sourcing of raw materials Processing
Product customisation
Sales and distribution
Efficient logistics• Strategic locations
provide logistics Margin optimisation through large
Broad geographic f t i t di t ib ti• Own large CPO
output base• Close access to
3rd party plantations
advantage• Refining,
shortenings, specialty fats, and oleochemicals
through large product portfolio -specifications, quality and sustainability
footprint - distribution, branding, merchandising, destination processing, shipping
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plantations oleochemicals facilities certification
p g pp gand logistics
Growth Strategy and OutlookGrowth Strategy and Outlook
Growth Strategy• Expanding palm oil plantations by 35,000-45,000 hectares in 2013 through organic growth and
acquisition• Building milling capacity in line with the growth in fruits production• Constructing additional downstream processing capacity in strategic locations
E t di di t ib ti d l b l k t h ll l i ti f iliti t h• Extending distribution coverage and global market reach as well as logistic facilities to enhance our integrated operations
Projected capex for FY 2013 growth strategy: approximately US$550 million
Industry OutlookRemains resilient with robust demand growth of palm oil:• As edible oil from both emerging markets and developed countries• As substitute and alternative uses such as oleochemicals and biodiesel• Supported by limited supply growth of other vegetable oils, especially soybean
GAR continues to expand its integrated operation capabilities in order to
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GAR continues to expand its integrated operation capabilities in order to benefit from the firm industry outlook, best-in-class plantation management
and solid financial position
Section 6
Appendix
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Revenue Details
1Q 2013 revenue of US$1.4 billion mainly from CPO and refined palm oil basedproducts
Soybean Oil Others PK
By CountryBy Product
Soybean Meal
Soybean Oil4%
Others8% 0%
Indonesia Local10%China LocalCPO
43%Branded Products
8%
Meal8%
10%China Local22%
Unbranded Refined Palm
Products29%
8%Indonesia
Export68%
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Age ProfileAge 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 Mar 2013Nucleus 23,419 70,572 173,884 77,258 22,184 367,317Plasma 5,596 9,523 50,795 31,020 - 96,934Total Area 29,015 80,095 224,679 108,278 22,184 464,251% of total planted area 6% 17% 49% 23% 5% 100%
31 Mar 2012Nucleus 28 138 83 896 154 083 73 400 21 186 360 703Nucleus 28,138 83,896 154,083 73,400 21,186 360,703Plasma 7,233 7,995 58,093 21,824 - 95,145Total Area 35,371 91,891 212,176 95,224 21,186 455,848% of total planted area 8% 20% 46% 21% 5% 100%
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Note:Average age of plantations as of 31 Mar 2013 is 14 years
Contact UsContact Us
If you need further information, please contact:
Golden Agri-Resources Ltdc/o 108 Pasir Panjang Road#06-00 Golden Agri PlazaSingapore 118535
Telephone : +65 65900800Facsimile : +65 65900887
www.goldenagri.com.sg
Contact Person : Richard Fung ([email protected])
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