1 Corporate Profile
10 Global Presence
12 Core Values
14 Financial Highlights
16 Board of
39 Awards &
Wilmar International Limited, founded in 1991 and headquartered
in Singapore, is today Asia’s leading agribusiness group.
Wilmar is ranked amongst the largest listed companies by
market capitalisation on the Singapore Exchange.
Wilmar’s business activities include oil palm cultivation, oilseed
crushing, edible oils refining, sugar milling and refining, specialty
fats, oleochemical, biodiesel and fertiliser manufacturing and
grain processing. At the core of Wilmar’s strategy is a resilient
integrated agribusiness model that encompasses the entire
value chain of the agricultural commodity processing business,
from origination and processing to branding, merchandising
and distribution of a wide range of agricultural products. It has
over 450 manufacturing plants and an extensive distribution
network covering China, India, Indonesia and some 50 other
countries. The Group is backed by a multinational workforce
of about 90,000 people.
Wilmar’s portfolio of high quality processed agricultural
products is the preferred choice of the food manufacturing
industry, as well as the industrial and consumer food
businesses. Its consumer-packed products occupy a leading
share in its targeted markets. Through scale, integration and
the logistical advantages of its business model, Wilmar is
able to extract margins at every step of the value chain,
thereby reaping operational synergies and cost efficiencies.
Wilmar remains a firm advocate of sustainable growth and
is committed to its role as a responsible corporate citizen.
44 Corporate Social
54 Investor Relations
56 Human Capital
59 Risk Management
77 Financial Report
Wilmar international limited
AnnuAl RepoRt 20132
Wilmar expanded its sugar business footprint in Africa, India and Brazil through strategic investments.
Fy2013 in revieW
I am pleased to report that Wilmar’s performance in 2013
has continued to improve amidst global economic recovery,
achieving robust earnings growth in Palm & Laurics, Oilseeds
& Grains, Consumer Products and Sugar.
The Group recorded US$1.32 billion net profi t in FY2013 versus
US$1.26 billion in FY2012. Excluding non-operating items and
changes in fair value of biological assets, the Group’s core net
profi t from operations increased 12% to US$1.30 billion in
FY2013. Total revenue declined marginally by 3% to US$44.09
billion, versus US$45.46 billion in FY2012, primarily due to
signifi cantly lower palm prices.
Earnings per share rose to 20.6 US cents in FY2013, as
compared to 19.6 US cents in FY2012, underlining our focus
on shareholder value creation. The Group’s balance sheet
remains strong, with total assets up by 11% to US$46.63
billion while shareholders’ funds increased to US$15.0 billion.
Gearing improved to 0.83x from 0.85x in FY2012.
The Board has recommended a fi nal dividend of S$0.055 per
share for FY2013. Including the interim dividend of S$0.025 per
share paid in September 2013, the total dividend for FY2013 is
S$0.08 per share, representing a dividend payout of more than
30% compared to about 20% in FY2012.
In recent years, the Group has utilised its strong cash
fl ows to invest selectively in projects that complement our
existing operations and also in new growth markets. These
investments have begun to make meaningful contribution to
our performance in FY2013.
Our Sugar division continued to make good progress during
the year, contributing 7% to our profi t before tax, up from 6%
in FY2012. Notable developments were:
• Our acquisition in April 2013 of a 27.5% equity stake in
Cosumar S.A., the sole sugar supplier in Morocco and the
third largest sugar producer in Africa.
• The appointment in August 2013 of Wilmar Sugar Pte Ltd,
the Group’s sugar trading unit, as Cevital Spa’s exclusive
agent and authorised operator for raw sugar supply to
Cevital’s two refi neries in Bejaia, Algeria. Cevital is among the
largest sugar refi neries globally. This will further strengthen
the Group’s merchandising operations.
Wilmar international limited
AnnuAl RepoRt 2013 3
• In February 2014, we entered into an agreement to acquire
a strategic stake in Mumbai-based Shree Renuka Sugars
Limited. This investment, subject to relevant regulatory
approvals, will allow the Group to establish a significant
presence in India and Brazil, the two most important
These developments will complement and strengthen our
existing sugar business and extend our presence across the
key sugar markets of Australia, Indonesia, India, Brazil and
Africa. We are confident that our sugar business will continue
to grow and contribute significantly to our earnings in future.
Palm & Laurics
We believe that the future of our Palm & Laurics business lies in
higher value-added and higher-margin downstream products.
We are particularly pleased with the record US$855.7m pretax
profit achieved by our Palm & Laurics division in FY2013,
not because of the quantum of improvement (11% up from
FY2012 pretax profit), but more because of the structural shift
in the quality of the earnings, which were achieved in the face
of generally low palm prices and critically, through increased
contributions from high value-added downstream products.
FY2013 saw the Group making inroads into the United States.
Wilmar Oils & Fats (Stockton), LLC, began processing palm,
coconut and palm kernel oils for the California and neighbouring
West Coast markets. From mid-2014, the refinery will begin
to supply sustainable palm oil certified to the Roundtable on
Sustainable Palm Oil (RSPO) standards to cater to the growing
demand from major retailers and food brands, many of which
have committed to sourcing only sustainable palm oil by 2015.
Forming partnerships is a win-win strategy that builds efficient
operations leveraging Wilmar’s manufacturing capability and
our partners’ technical expertise:
• The Group’s joint venture with Elevance Renewable
Sciences, Inc. commenced shipping commercial products,
including novel specialty chemicals, to customers from its
biorefinery located within our integrated manufacturing
complex in Gresik, Indonesia. The biorefinery is the first to
harness Elevance’s proprietary metathesis technology, which
is capable of delivering innovative products that enhance
performance and reduce environmental impact.
• The Global Amines Company Pte Ltd, a joint venture
between Wilmar and Clariant International Ltd, started
production in Lianyungang, China in February 2013. The joint
venture company positions itself as the first fully integrated
and competitive player along the value chain from renewable
materials to selected amine derivatives. With production
plants in Germany, China, Japan and Brazil, the company is
seeing a steady growth in sales with its product offering of
primary amines, tertiary amines and amine derivatives.
• Since the Group’s foray into the Chinese oleochemicals
market in 2004, the business has been on a solid growth
trajectory. Further leveraging our competitive advantage in
raw materials, Wilmar inked an agreement with Kemira Oyj in
November 2013 to form two 50:50 joint venture entities for
the manufacture of Alkyl Ketene Dimer (AKD) Wax in China.
Wilmar will benefit from the collaboration as stearic acid is
the primary raw material for AKD production, and Wilmar is a
global leader in stearic acid production.
In line with the rapid growth of the specialty fats business in
the last few years, the Group expanded processing capacity
in China, Indonesia and India. We intend to continuously
enhance the margin of our specialty fats business through the
development of higher-end products.
Oilseeds & Grains
Flour and rice milling, although relatively new businesses, show
good long-term potential and have obvious synergies with
our edible oils businesses. Leveraging our existing business
infrastructure as well as trusted brand name, our flour and rice
businesses have made good progress in FY2013. Not only do
these businesses continue to gain scale and market share,
they are gaining a reputation amongst our customers for high
quality and good value. In FY2013, two new flour mills were
commissioned in China, and another two new flour mills are
under construction in Vietnam and Indonesia.
In China, our aim is to build on our strong manufacturing and
distribution facilities and the “Arawana” brand - our leading
consumer pack edible oils brand in China, to also become a
leader in consumer pack flour and rice, as well as other higher-
margin food consumer products. We are becoming increasingly
recognised as a producer of high-quality food products which
use edible oils, rice, flour and soybeans as their key ingredients.
Our joint venture with Kellogg Company in China has made
good progress since the start of our collaboration in 2012.
Kellogg’s premium bre