company presentation september 2021
TRANSCRIPT
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www.goldenagri.com.sg
Company Presentation September 2021
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CONTENTS
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Corporate Overview 3 1
Key Competitive Strengths 5 2
Strategy for Sustainable Growth 11 3
First Half 2021 Performance 14 4
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CORPORATE OVERVIEW
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Planted Area (as of 30 Jun 2021)1 536,877 ha
Output of Palm Products (CPO and PK)
1H 2021 1,598,000 MT
FY 2020 2,775,000 MT
Plantation Profile
OVERVIEW OF GAR
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• Listed on SGX since 1999
• A leading Indonesian plantation group with integrated operations for the production of a wide range of value added palm-based products
• Global marketing presence with refining facilities in China and India, sales representative offices and ex-tank operations in many large consuming countries
Financial Statistics (in US$ million)
Notes: 1. Including plasma 2. Earnings before tax, non-controlling interests, interest on borrowings, depreciation and amortisation, net gain/loss from changes in fair value of biological assets,
foreign exchange gain/loss and exceptional items. EBITDA includes allocated net fair value gain/loss on financial assets (IFRS 9) of US$11 million and US$-8
million in 1H 2021 and FY 2020, respectively.
1H 2021 FY 2020
Revenue 4,454 7,078
EBITDA2 523 669
Underlying Profit3 246 230
Equity 4,625 4,432
3. Net profit attributable to owners of the Company, excluding net gain/loss from changes in fair value of biological assets, depreciation of bearer plants, exceptional items, foreign exchange gain/loss, and deferred tax expense
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KEY COMPETITIVE STRENGTHS
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International sales offices and ex-tank operations
LEADING INDONESIAN PLANTATION GROUP WITH INTEGRATED OPERATIONS AND GLOBAL PRESENCE
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Notes: 1. Data as of 30 June 2021 2. Including operations under JV
Research & Development
Collaboration with CIRAD
Seedling
Dami Mas seed garden
SMART biotechnology center
Plantations 537k ha
21% plasma
93% mature
FFB output 5.18mn MT (1H 2021) 9.30mn MT (2020)
Milling
49 mills
14.42mn MT FFB p.a
Processing Processed Products
CPO
1.27mn MT (1H 2021) 2.21mn MT (2020)
PK
325k MT (1H2021) 570k MT (2020)
6 refineries 4.98mn tpa
2 biodiesel plants 600k tpa
9 kernel crushing plants 1.76mn tpa
2 oleochemical plants 440k tpa2
Cooking oils Margarine Shortening Specialty fats
Biodiesel (FAME) Glycerine
Palm kernel oil Palm kernel meal
Fatty acids Fatty alcohol Glycerine Soap noodles
Destination refining
Global distribution and logistics
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537
288 268 341
211 188
583
177 213
335
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200
400
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GAR Astra Agro Wilmar IndofoodAgri
FirstResources
Bumitama Sime Darby IOI KLK Felda
CORE PALM PLANTATION BUSINESS LEADING IN SCALE
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Largest plantation group in Indonesia and third largest globally in CPO production
Notes: 1. Based on latest full fiscal year data 2. Felda is the largest CPO producer with most of its FFB processed sourced from farmers and other parties
Largest plantation group in Indonesia and second largest globally in planted area
Indonesia Malaysia
Indonesia Malaysia
Note: Based on latest publicly available information (including plasma, except Felda)
‘000 MT
‘000 ha
2.205
1.429 1.716
737 856 1.025
2.363
708 999
2.871
0
1000
2000
3000
GAR Astra Agro Wilmar IndofoodAgri
FirstResources
Bumitama Sime Darby IOI KLK Felda
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7% 8%
45%
20%
20% Immature (0-3 years)
Young (4-6 years)
Prime 1 (7-18 years)
Prime 2 (19-25 years)
Old (>25 years)
MANAGEMENT EXPERTISE DELIVERS HIGH PRODUCTION YIELDS
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20,4 17,4 20,4 14,1 16,4 19,0 19,1 21,2 22,0 16,9
4,4
3,4
4,1
3
3,8
4,3 4,1
4,6 4,8
3,4
2,0
3,0
4,0
5,0
11
13
15
17
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21
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GAR Astra Agro Wilmar IndofoodAgri
FirstResources
Bumitama Sime Darby IOI KLK Felda
FFB CPO
4,4
3,1
0,8 0,9 0,5
0,0
1,0
2,0
3,0
4,0
5,0
Palm OilGAR
Palm OilIndustry
RapeseedOil
SunflowerOil
SoybeanOil
Palm is the highest yielding vegetable oil
GAR’s plantation yield is amongst the highest
Notes: • Based on latest full fiscal year data • CPO yield is calculated from FFB yield/ha multiplied by extraction rate
Source: Oil World and Company. Data as per 2020
GAR Age Profile
Note: Data as of 30 June 2021, include plasma. Average age is 17 years
GAR is one of the lowest cost producers with industry-leading efficiencies
FFB y
ield
- M
T/h
a
MT/ha
Indonesia Malaysia
CPO
yie
ld -
MT/h
a
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9
TOWARDS RESPONSIBLE PALM OIL PRODUCTION
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TTP for palm supply chain
• To date, 94% of palm supply chain is fully traceable to the plantation
• Aim to go beyond 100% TTP to reflect entire supply shed and maintain full traceability
• This is because supply chain fluctuates every year due to suppliers joining or leaving
GAR scores strongly on ESG
• Continues to be part of FTSE4Good with score 3.3/5 and 59 percentile rank
• Ranks 10/100 on the SPOTT ESG policy transparency assessment
• Ranks 38/519 on the Singapore Governance and Transparency Index 2021
Expanding deforestation monitoring
• Near real-time satellite monitoring of deforestation
• Covers palm oil concessions and supply chain across all of Indonesia
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EMPOWERING COMMUNITIES
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Employment and Infrastructure • GAR provides employment for about 173,500 people in Indonesia
• 70,900 permanent employees, 31,800 fixed-term employees and 70,800 smallholders • We promote small and micro enterprises near our operation areas • Builds and maintains public infrastructures and facilities
• Roads, bridges, places of worship and sporting facilities
Education and Healthcare
The palm oil industry is effective in creating jobs and alleviating poverty
Note: Data as per 2020
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STRATEGY FOR SUSTAINABLE GROWTH
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GAR IS WELL POSITIONED TO PURSUE SUSTAINABLE GROWTH
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GAR is a leading soil-to-table agribusiness with efficient end-to-end supply chain, from sustainable sourcing to global delivery
We meet our customers’ needs
• Industry-leading portfolio of palm-based value-added products
• Positioned to capture growth as the world’s nutrition and health needs evolve
We control the physical flow of our products
• Quality raw materials from largest owned plantations
• Widest network of third party suppliers with traceability
• Comprehensive logistic capabilities and presence in major consuming countries
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We embrace science and technological innovation
• Aim for high-productivity and sustainability-focused precision agriculture
• High-yielding, drought-and-disease-resistant planting materials
• New end product development providing solutions to our customers
• Combining automation, digitalisation, artificial intelligence with operational excellence
Sustainability is in our DNA
• Leader in sustainability with strong commitment in responsible palm oil production
• Pioneering initiatives including traceability to the plantation, driving sustainability from the source
• Commanding wider market acceptance and premium pricing of our products
GAR IS WELL POSITIONED TO PURSUE SUSTAINABLE GROWTH
We are capitalising on palm oil competitiveness as essential ingredient based on evolving consumer preferences towards health-friendly and sustainably-produced products
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FIRST HALF 2021 PERFORMANCE
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CONSOLIDATED FINANCIAL PERFORMANCE
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Notes: 1. EBITDA includes net fair value gain/(loss) on financial assets in accordance with IFRS 9 of US$11 million, US$-14 million, US$-8 million and US$213 million in
1H 2021, 1H 2020, 2020 and 2019, respectively 2. Net profit/loss attributable to owners of the Company, excluding net effect of gain/loss from changes in fair value of biological assets, depreciation of bearer
plants, exceptional items, foreign exchange gain/loss, and deferred tax expense 3. Net of tax and/or non-controlling interests
Stronger performance in first half 2021 contributed from both upstream and downstream businesses
(in US$ million) 1H 2021 1H 2020 2020 2019
Revenue 4,454 3,391 7,078 6,432
Gross Profit 1,061 389 1,150 831
Gross Profit Margin 24% 11% 16% 13%
EBITDA1 523 189 669 697
EBITDA margin 12% 6% 9% 11%
Underlying Profit/(Loss)2 246 (11) 230 272
Foreign Exchange Gain/(Loss)3 (8) (45) (30) 38
Deferred Tax Expense3 (27) (31) (67) (19)
Net Profit/(Loss) attributable to owners of the Company 153 (157) 32 194
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SEGMENTAL RESULTS Plantations and Palm Oil Mills
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Higher margins supported by sustained strength in CPO prices and production recovery
Revenue (US$ million) 1,043 625 67% 1,482 1,324
EBITDA (US$ million) 365 132 177% 416 299
EBITDA margin 35% 21% 14% 28% 23%
CPO FOB Price (US$/MT) 1,088 616 77% 691 523 FFB Production (‘000 tonnes) 5,183 4,084 27% 9,297 9,871 Nucleus 4,060 3,215 26% 7,302 7,617 Plasma 1,123 869 29% 1,995 2,254
FFB Yield (tonnes/ha) 10.4 8.8 18% 20.4 21.5
Palm Product Output (‘000 tonnes) 1,598 1,219 31% 2,775 2,913 CPO 1,273 973 31% 2,205 2,306 PK 325 246 32% 570 607
Oil Extraction Rate 21.6% 21.6% - 21.4% 21.5% Kernel Extraction Rate 5.5% 5.5% - 5.5% 5.7%
Palm Product Yield (tonnes/ha) 2.8 2.4 19% 5.5 5.8
1H 2021 1H 2020 YoY FY 2020 FY 2019
Note: EBITDA includes allocated net fair value gain/loss on financial assets (IFRS 9) of US$5 million, US$-3 million, US$-3 million and US$47 million in 1H 2021, 1H 2020, FY2020 and FY2019, respectively
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SEGMENTAL RESULTS Palm, Laurics and Others
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Revenue (US$ million) 4,433 3,382 31% 7,058 6,391
Sales Volume (‘000 tonnes) 4,778 4,971 -4% 10,140 10,843
EBITDA (US$ million) 158 58 172% 255 398
EBITDA margin 3.6% 1.7% 1.9% 3.6% 6.2%
1H 2021 1H 2020 YoY FY 2020 FY2019
Strong margin recovery after impact from the COVID-19 outbreak in early 2020
Notes: 1. This segment refers to processing and merchandising of palm and oilseed based products i.e. bulk, branded, oleo-chemicals and other vegetable oils, as well as
production and distribution of other consumer products mainly food and beverages 2. EBITDA includes allocated net fair value gain/loss on financial assets in accordance with IFRS 9 of US$6 million, US$-11 million, US$-5 million and US$166 million
in 1H 2021, 1H 2020, FY 2020 and FY2019, respectively
• Lower sales volume in first half 2021 due to timing of delivery resulting to higher inventory at the end of the period
• Indonesia B30 biodiesel programme is a major catalyst to the industry with strong support from the Government and industry players
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FINANCIAL POSITION
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US$ million 30-Jun-21 31-Dec-20 Change
Total Assets 9,240 9,126 1%
Cash and short-term investments 1,041 1,097 -5%
Fixed assets1 4,017 4,127 -3%
Total Liabilities 4,615 4,695 -2%
Net Debt2 747 1,108 -32%
Interest bearing debt 3,060 3,145 -3%
Cash, short-term investments and liquid working
capital3 2,313 2,037 14%
Total Equity 4,625 4,432 4%
Net Debt2/Total Equity 0.16x 0.25x
Net Debt2/Total Assets 0.08x 0.12x
Net Debt2/EBITDA4 0.75x 1.66x
EBITDA/Interest4 6.67x 4.83x
Notes: 1. Includes Property, Plant and Equipment, Bearer Plants, Right-of-use Assets and Investment Properties 2. Interest bearing debt less cash, short-term investments and liquid working capital 3. Liquid working capital is trade receivables, inventories (excluding consumables), deposits and advances to suppliers less trade payables and advances
from customers 4. Calculated based on the last four quarters figures
Lower leverage and strengthened liquidity position amidst the COVID-19 pandemic
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DISCLAIMER
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This presentation has been prepared by Golden Agri-Resources Ltd. (“GAR” or “Company”) for informational purposes, and 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. A prospective investor must make its own independent decision regarding investment in securities.
Opinions expressed herein reflect the judgement of the Company as of the date of this presentation and may be subject to change without notice if the Company becomes aware of any information, whether specific to the Company, its business, or in general, which may have a material impact on any such opinions.
The information is current only as of its date and shall not, under any circumstances, create any implication that the information contained therein is correct as of any time subsequent to the date thereof or that there has been no change in the financial condition or affairs of GAR since such date. This presentation may be updated from time to time and there is no undertaking by GAR to post any such amendments or supplements on this presentation.
The Company will not be responsible for any consequences resulting from the use of this presentation as well 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 @GAR_Sinarmas @sinarmas_agri Sinar Mas Agribusiness and Food
Golden Agri-Resources Ltd c/o 108 Pasir Panjang Road #06-00 Golden Agri Plaza Singapore 118535 Telephone : +65 65900800 Facsimile : +65 65900887 www.goldenagri.com.sg Contact Person : Richard Fung [email protected]
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