WILMAR INTERNATIONAL LIMITED 4Q2012 Results Briefing WILMAR INTERNATIONAL LIMITED 4Q2012 Results Briefing

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  • WILMAR INTERNATIONAL LIMITED

    4Q2012 Results Briefing

    February 22, 2013

  • 1

    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 change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the Company’s assumptions are correct. Actual results may differ materially from those projected.

    This presentation does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer to purchase or subscribe for, any shares nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract or investment decision.

  • 2

    Agenda

    1 4Q2012 Financial Performance

    2 Business Outlook

    3 Questions and Answers

  • 3

    4Q2012 Financial Performance

  • 4

    4Q12 (US$m) vs 4Q11 ����

    Revenue 11,623 1%

    EBITDA 731 -17%

    Net profit 477 -5%

    Earnings per share in US cents (fully diluted)

    7.5 -4%

    Net profit – excl non- operating items

    401 52%

    Overview of Results

    FY12 (US$m) vs FY11 ����

    Revenue 45,463 2%

    EBITDA 2,406 -14%

    Net profit 1,255 -22%

    Earnings per share in US cents (fully diluted)

    19.6 -22%

    Net profit – excl non- operating items

    1,167 -23%

  • Revenues

    5

    4Q12 Key Highlights

    Revenue up 1% on volume increases offset

    by weaker prices

    Palm & Laurics volume up 21% but lower

    average selling price

    Consumer Products volume up 1%

    Strong volume growth for Sugar offset by

    weaker prices

    Oilseeds & Grains volume down 14%

    FFB production up 12% for Plantations offset by

    declining CPO price

  • Net Profit

    500 477

    1,601

    1,256

    265

    401

    1,517

    1,167

    0

    200

    400

    600

    800

    1,000

    1,200

    1,400

    1,600

    1,800

    4Q11 4Q12 FY11 FY12

    U S

    $ M

    il li o

    n

    Net Profit Net Profit excl non-op 6

    4Q12 Key Highlights

    US$477m net profit, down 5% Core earnings from operations up 52%

    Palm & Laurics benefited from revised Indonesian

    export tax structure

    Oilseeds & Grains posted another profitable quarter on

    improved crush margin

    Strong earnings growth in Consumer Products on lower

    feedstock cost

    Higher profits from Sugar Processing and

    Merchandising activities

    Lower Plantation profit from lower prices, yield and higher

    costs

  • Business Segment Results: Profit before Tax

    7

    US$ million 4Q12 4Q11 ∆ FY12 FY11 ∆

    Merchandising & Processing

    241.2 110.3 >100% 785.2 1008.8 -22%

    � Palm & Laurics 195.0 108.6 80% 771.1 585.9 32%

    � Oilseeds & Grains 46.2 1.7 >100% 14.1 422.9 -97%

    Consumer Products 40.6 33.2 22% 157.2 85.3 84%

    Plantations & Palm Oil Mills

    116.2 376.1 -69% 410.8 733.8 -44%

    Sugar 106.7 98.4 8% 99.8 141.3 -29%

    � Milling 67.8 101.9 -34% 6.2 85.7 -93%

    � Merchandising & Processing

    38.9 (3.5) n.m. 93.6 55.5 69%

    Others 30.9 24.7 25% 110.3 41.6 >100%

    Associates 22.2 42.0 -47% 123.1 185.3 -34%

    Unallocated income/(expenses)

    (9.6) (8.2) 17% (31.9) (117.4) -73%

    Profit Before Tax 548.2 676.3 -19% 1,654.6 2,078.7 -20%

    • Others include Shipping and Fertiliser businesses and gains/losses from investment securities • Unallocated income/expenses refer to share option expenses, fair value gains/losses on

    convertible bonds and accretion interest of the bonds

  • Business Segment results: Palm and Laurics

    8

    • Sales volume grew substantially by 21% in 4Q12 and grew 14% in FY12 due to an expanded capacity and stronger demand led by lower palm prices

    • Higher PBT was driven by strong margins due to the revised Indonesian export tax structure which came into effect in mid-September 2011

    4Q12 4Q11 ∆ FY12 FY11 ∆

    Revenue (US$ million) 5,529 5,475 1% 22,748 22,917 -1%

    Sales volume (‘000 MT) 6,474 5,344 21% 23,115 20,306 14%

    Profit before tax (US$ million)

    195.0 108.6 80% 771.1 585.9 32%

    Profit before tax per MT (US$/MT)

    30.1 20.3 48% 33.4 28.9 16%

  • Business Segment results: Oilseeds and Grains

    9

    4Q12 4Q11 ∆ FY12 FY11 ∆

    Revenue (US$ million) 3,559 3,827 -7% 12,936 12,670 2%

    Sales volume (‘000 MT) 5,311 6,150 -14% 19,551 19,939 -2%

    Profit before tax (US$ million)

    46.2 1.7 >100% 14.1 422.9 -97%

    Profit before tax per MT (US$/MT)

    8.7 0.3 >100% 0.7 21.2 -97%

    • Volume declined in 4Q12 owing to the reduction in volume of soybeans crushed, partially offset by strong growth volumes in flour

    • Improved crush margins drove the turnaround to finish FY12 with a profit of US$14.1 million

  • Business Segment results: Consumer Products

    10

    • Volume was lifted in 4Q12 and FY12 due to stronger demand for the Group’s flour and rice products

    • Margin improved significantly as a result of lower feedstock cost while a price increase restriction was in effect for the first seven months of FY2011

    4Q12 4Q11 ∆ FY12 FY11 ∆

    Revenue (US$ million) 1,753 1,791 -2% 7,096 6,769 5%

    Sales volume (‘000 MT) 1,190 1,178 1% 4,608 4,397 5%

    Profit before tax (US$ million)

    40.6 33.2 22% 157.2 85.3 84%

    Profit before tax per MT (US$/MT)

    34.1 28.1 21% 34.1 19.4 76%

  • Business Segment results: Plantations & Palm Oil Mills

    11

    4Q12 4Q11 ∆ FY12 FY11 ∆

    Revenue (US$ million) 419.4 462.2 -9% 1,728.1 1,842.5 -6%

    Profit before tax (US$ million) 116.2 376.1 -69% 410.8 733.8 -44%

    Planted area (ha) 255,648 247,081 3% 255,648 247,081 3%

    Mature area harvested (ha) 222,370 205,485 8% 222,370 205,485 8%

    FFB production (MT) 1,254,931 1,117,060 12% 4,210,490 4,072,961 3%

    FFB Yield (MT/ha) 5.6 5.4 4% 18.9 19.8 -4%

    Mill Production

    � Crude Palm Oil (MT) 569,772 487,275 17% 1,909,330 1,778,882 7%

    � Palm Kernel (MT) 134,489 115,691 16% 449,984 413,554 9%

    Extraction Rate

    � Crude Palm Oil 20.3% 20.7% -2% 20.4% 20.6% -1%

    � Palm Kernel 4.8% 4.9% -2% 4.8% 4.8% 0%

    • PBT declined due to lower palm oil prices, higher unit production cost and overall drop in production yield in FY12

    • Higher FFB yield in 4Q12 on improved crop trend in Sabah and Sumatra but lower for FY12 fell due to low crop trend in Sarawak and the after-effects of dry weather in Sabah, Kalimantan and Sumatra in 9M12

    • Unit production cost rose on the back of lower production yield, higher fertiliser and labour cost

  • Plantation Age Profile

    12

    31 Dec 2012 0 to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total

    Indonesia 14,199 67,082 60,018 19,956 25,442 186,697

    Malaysia 3,831 3,423 18,132 15,493 17,892 58,771

    Africa 1,148 1,608 6,627 4 793 10,180

    Total planted area 19,178 72,113 84,777 35,453 44,127 255,648

    % of total planted area 7.5% 28.2% 33.2% 13.9% 17.2% 100.0%

    Included YTD new plantings of : 1,402

    Plasma Programme 863 2,784 15,759 11,327 10,674 41,407

    % of planted area 2.1% 6.7% 38.1% 27.3% 25.8% 100.0%

    31 Dec 2011

    Indonesia 26,886 74,627 42,293 16,402 23,261 183,469

    Malaysia 2,679 5,608 18,167 17,304 15,176 58,934

    Africa 893 579 1,749 3 1,454 4,678

    Total planted area 30,458 80,814 62,209 33,709 39,891 247,081

    % of total planted area 12.3% 32.7% 25.2% 13.6% 16.2% 100.0%

    Included FY11 new plantings of : 2,650

    Plasma Programme 1,060 2,087 16,843 8,382 9,649 38,021

    % of planted area 2.8% 5.5% 44.3% 22.0% 25.4% 100.0%

    • Weighted average age of our plantations is approximately 11 years

  • Biological Gain

    Biological Gain (Pre tax)

    US$ ’million

    PBT US$ ’million

    % of PBT

    2006 17.4 135.4 12.8%

    2007 123.5 829.8 14.9%

    2008 - 1,789.3 -

    2009 17.0 2,294.4 0.7%

    2010 251.0 1,644.2 15.3%

    2011 262.7 2,078.7 12.6%

    2012 28.8 1,654.6 1.7%

    Total 700.4 10,426.4 6.7%

    13

  • Biological Assets

    • Carrying value of biological assets: US$1.97 billion (including fair value gains in biological assets)

    • Total land hectarage: 255,648 ha

    • 61.4% of our matured plantation is between 4 to 14 years.

    • Average value per hectare: approximately US$7,700/ha

    • Key Assumption used in discounted cashflow: price of FFB, discount rates, growth rates, age profile of plantation, average yield

    14

  • Business segment results: Sugar Milling

    15

    4Q12 4Q11 ∆ FY12 FY11 ∆

    Revenue (US$ million) 408 405 1% 1,078 1,164 -7%

    Sales volume (‘000 MT) 1,