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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.

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Agenda

1 4Q2012 Financial Performance

2 Business Outlook

3 Questions and Answers

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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 items401 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 items1,167 -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

US

$ M

illio

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

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• 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

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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%


46.2 1.7 >100% 14.1 422.9 -97%


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

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• 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%


40.6 33.2 22% 157.2 85.3 84%


34.1 28.1 21% 34.1 19.4 76%

Business Segment results: Plantations & Palm Oil Mills

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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

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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

PBTUS$ ’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%

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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

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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) 1,213 1,070 13% 2,759 2,669 3%

Profit before tax (US$ million) 67.8 101.9 -34% 6.2 85.7 -93%

Excluding non-operating items:

Profit before tax from operations (US$ million)

65.5 42.3 55% 14.3 48.5 -71%


54.0 39.6 36% 5.2 18.2 -72%

Operating statistics :

Commercial cane sugar (CCS) (%)

14.7 14.1 4% 14.2 13.4 6%

Cane crushed (m MT) 5.6 4.5 24% 13.9 13.5 3%

• Volume growth was achieved through acquisition of Proserpine completed in December 2011

• PBT from operations was up 55% in 4Q12 reflecting higher margins from crushing better quality canes

• For FY12, PBT from operations fell as a result of lower sugar prices and higher cost attributed to wet weather in 1H12

Business segment results: Sugar Merchandising and Processing

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• Increase in revenue was driven by higher volumes partially offset by lower average selling price

• Volume and PBT growth were attributed to increased merchandising activities and contributions from PT Duta Sugar International acquired in 3Q11

4Q12 4Q11 ∆ FY12 FY11 ∆

Revenue (US$ million) 664 476 39% 2,564 2,045 25%

Sales volume (‘000 MT) 1,020 567 80% 3,729 2,458 52%

Profit before tax (US$ million) 38.9 -3.5 n.m. 93.6 55.5 69%

Excluding non-operating items:

Profit before tax from operations (US$ million)

40.8 -12.7 n.m. 100.9 45.7 >100%


40.0 -22.4 n.m. 27.0 18.6 45%

Non-Operating Items

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In US$ million 4Q12 4Q11 FY12 FY11

Foreign exchange gain arising from intercompany loans to subsidiaries 9.8 62.1 0.5 26.5

Net gain/(loss) from investment securities 44.7 6.3 79.3 (68.7)

Changes in the fair value of derivatives embedded in convertible bonds - (1.3) (0.3) (84.7)

Interest expense directly attributable to the funding of the Sucrogen acquisition (7.2) (10.9) (30.0) (43.0)

Sugar - accounting profit from reversal of derivatives mark-to-market losses in pre-acquisition hedging reserves 8.5 15.1 14.8 65.9

Net gains from biological assets28.8 262.7 28.8 262.7

Total (pretax impact) 84.6 334.0 93.1 158.7

Total (post tax impact) 75.9 235.5 88.6 83.8

Profit before tax - reported 548.2 676.3 1,654.6 2,078.7

Profit before tax - excl non-operating items & biological assets gains 463.6 342.3 1,561.5 1,920.0

Net profit - reported 476.8 500.0 1,255.5 1,600.8

Net profit - excl non-operating items & biological assets gains 400.9 264.5 1,166.9 1,517.0

Cumulative Cashflow

2006 2007 2008 2009 2010 2011 2012Cumulative 2006 -2012

US'mil US'mil US'mil US'mil US'mil US'mil US'mil US'mil

Operating cash flows* 220 1,031 2,089 2,137 1,935 2,459 2,201 12,072

Net interest (37) (139) (200) (11) (62) (264) (210) (923)

Income taxes paid (18) (82) (287) (242) (265) (269) (342) (1,506)

CAPEX (161) (610) (1,107) (1,063) (1,064) (1,554) (1,735) (7,293)

Dividend (6) (22) (240) (328) (385) (280) (263) (1,523)

Operating Cash Flow after CAPEX and Dividend

(1) 180 254 492 159 93 (350) 827

Increase in net debts NA 2,734 (1,670) 1,716 5,855 568 1,679 10,882

Working capital changes (66) (1,837) 1,630 (2,404) (3,926) 22 (581) (7,162)

Investment in M&A (41) 95 (248) (70) (1,679) (356) (300) (2,599)

Net debts after working capital and M&A NA 992 (288) (758) 250 234 798 1,228

18*Operating cash flow is before working capital changes

Gearing

19

US$ million As at Dec 31, 2012

As at Dec 31, 2011

Debt/Equity (x) 0.85 0.79

- Net Debt * 12,209 10,530

- Shareholders' funds 14,346 13,370

Adjusted Debt/Equity (x) 0.36 0.29

- Liquid working capital ** 7,011 6,687

- Adjusted Net Debt 5,198 3,843

Interest coverage (x) # 8.4 9.2

• Net debt to equity ratio increased to 0.85X but lower than 0.92X in 3Q12

• Adjusted debt to equity ratio remains low at 0.36X

• Interest coverage ratio decreased to 8.4X but improved from 6.8X in 3Q12

* Net Debt = Total borrowings – Cash and bank balances – Other deposits with financial institutions

(Dec 2011 net debt and gearing have been re-stated to reflect revised net debt definition which also nets off “other deposits with financial institutions” )

** Liquid working capital = Inventories (excl. consumables) + Trade receivables – Current Liabilities (excl. borrowings)

# Interest coverage = EBIT (excl. share of results of associates) / Net interest expense

Net interest expense = Interest expense – Interest income (include interest income from other deposits with financial institutions)

Funding and Liquidity

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As at December 31, 2012

US$ million Available Utilised Balance

Credit facilities :

Committed 9,379 8,739 640

Trade finance 25,597 13,202 12,395

Short term 794 304 490

Total credit facilities 35,770 22,245 13,525

Cash & cash equivalents 1,528

Total liquidity 15,053

• 59% of utilised facilities were trade financing lines, backed by inventories and receivables

• 62% of total facilities were utilised at December 31, 2012

• US$15.1b total liquidity available at December 31, 2012

Key Indicators

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Year ended December 31, 2012

Year ended December 31, 2011

Return on Average Equity 9.1% 12.7%

Return on Average Capital Employed 5.4% 7.5%

Return on Average Assets 3.2% 4.6%

Return on Invested Capital 6.0% 8.8%

in US cents

EPS (fully diluted) 19.6 25.0

NTA per share 154.6 140.0

NAV per share 224.3 208.9

in Singapore cents

Dividends (interim & final) 5.0 6.1

Business Outlook

• Good economic growth in the Group’s key markets namely China, India and Indonesia

• Robust integrated business model

• Remains cautiously optimistic on long term prospects despite uncertainties in global economy

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Questions & Answers