9 Mths Ended 31 Mar

8/11/2019 9 Mths Ended 31 Mar

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Olam International Limited

9M FY2005 Results Announcement

Presentation


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This presentation should be read in conjunction withOlam International Limiteds Third Quarter, FY2005

(Q3 FY2005) and Nine Months FY2005 (9M FY2005)

Financial Results for the period ended 31st

March 2005statement lodged on MASNET on 11th May 2005.


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Cautionary note on forward-looking statementsThis presentation may contain statements regarding the business of Olam International

Limited and its subsidiaries (Group) that are of a forward looking nature and aretherefore based on managements assumptions about future developments.

Such forward looking statements are intended to be identified by words such as

believe, estimate, intend, may, will , expect, and project and similar expressions

as they relate to the Group. Forward-looking statements involve certain risks and

uncertaint ies because they relate to future events. Actual results may vary materially

from those targeted, expected or projected due to several factors.

Potential risks and uncertainties includes such factors as general economic

conditions, foreign exchange fluctuations, interest rate changes, commodity price

fluctuations and regulatory developments. Such factors that may affect Olams future

financial results are detailed in our listing prospectus, listed in this presentation, or

discussed in todays press release and in the management discussion and analysis

section of the companys 3Q FY2005 & 9M FY2005 report and fi lings with SGX. The

reader and/or listener is cautioned to not unduly rely on these forward-lookingstatements. We do not undertake any duty to publish any update or revision of any

forward looking statements.


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Introduction


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Present in all key producing countries for the 14 products

Subsidiaries in 39 countries (mostly wholly owned)

Russia Poland

France

UK

Italy

Holland

Ukraine

Europe

As ia

Singapore

China

Indonesia

Vietnam

India

PNG

Nigeria Ghana Benin Togo Ivory Coast Burkina Faso G. Bissau G. Conakry Cameroon Gabon D R Congo

W. Africa

Mozambique

Zimbabwe S. Africa

Southern Af rica

Tanzania

Kenya

Uganda

Madagascar

Mauritius

E. Afr ica

N. America

USA

Brazil

S. America

U.A.E

Turkmenistan

Uzbekistan

Kazakhstan

Middle East &

Central Asia

Linking key producing countries (origins), processing centres & markets


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Background

to analysing

our results


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Background to analysing our results: Structure

Contribution Analysis

Gross Contribution (GC)

Net Contribution (NC)

Underlying Volumes


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Background to analysing our results: Contribution Analysis

Sales Revenue

Less: Cost of goods sold

Shipping & Logistics

Commission & Claims

Gross Contribution (GC)

Less: Net Interest expense

Net Contribution (NC)Less: SG&A

Profit Before Tax (PBT)

Less: Tax

Net Profit After Tax (NPAT)

Profitability Analysis:


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Background to analysing our results: Volumes

Volume is more or less within our control and is a function of

the reach of our supply chain infrastructure in both origins &

markets.

Net Contribution / ton x Volume = Total Net Contribution

Margin or NC enhancement achieved through providing valueadded services including VMI, customised grades and

qualities, organic certification, FTP certi fication, risk

management solutions, etc.


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4 Reporting Segments

Product segments Products

Edible Nuts, Spices & Beans1.

Confectionery & BeverageIngredients

2.

Fibre & Wood Products4.

Food Staples &Packaged Foods

3.

Cashew nuts Other edible nuts Sesame Spices

Beans

Cocoa Coffee Sheanuts

Rice Sugar Diary products

Packaged foods

Cotton Wood products


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Results: 9M FY2005

Consolidated P&L


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Key Highlights: 9M FY2005

We continue to concurrently meet all 3 criteria for profitable growth:

Top line growth (9M FY2005 sales turnover of S$2.56 billion, up 46% from9M FY2004).

Bottom line growth (9M FY2005 of S$48.1 million, up 36% from 9MFY2004).

Earning more than ones cost of capital.

Well diversified and balanced portfolio: Broad based performance from all 4business segments; similarly well diversified sourcing contributions from origin

countries and revenue contributions from markets.Continuing to execute exceedingly well on organic growth initiatives inadjacent opportunities giving us good visibility on full year earnings prospectsand beyond.

Post listing, total shareholder funds grew by 143% as at 31st March 2005 toS$461.38 million as against S$189.86 million as at 30th June 2004.


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Financial Highlights: 9M FY2005

Total Revenue: S$2.56 billion

46% growth over 9M FY2004

Revenue growth across all 4 segments


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Sales revenue growth: Segmental Contribution

9M FY2004 Edible Nuts,

Spices & Beans

Confectionery

& BeverageIngredients

Food Staples &

Packaged Foods

Fibre & Wood

Products

9M FY2005

1,751177

311

24572 2,556

0

500

1,000

1,500

2,000

2,500

$3,000M

SalesRevenue

(S$ M)

Sales growth 46%, S$805 million

22%39%

30%

9%

71% 44% 67% 17%Growth Over 9M FY2004:


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Sales revenue growth: Sources

9M FY2004 Volume Price 9M FY2005

1,751

499

306 2,556

0

500

1,000

1,500

2,000

2,500

$3,000M

SalesRevenue (S$ M)

62%

Sales growth 46%, S$805 million

38%


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Sales Volume: 1.98 mill ion metric tons


Volume growth across all 4 segments


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Sales Volume growth: Segmental Contribution

9M FY2004 Edible Nuts,Spices & Beans

Confectionery& Beverage

Ingredients


Fibre & WoodProducts

9M FY2005

1,53671

77

20198 1,983

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

$2,000M

SalesVolume

('000 mts)

16%

Sales Volume growth 29%, 447 million mts

17%

45%

22%

33% 20%Growth Over 9M FY2004: 29% 39%


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Gross Contribution (GC): S$165 mill ion


GC growth across all segments


G C t ib ti th S t l Sh


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Gross Contribution growth: Segmental Share

9M FY2004 Edible Nuts,

Spices & Beans

Confectionery

& BeverageIngredients

Food Staples &

Packaged Foods

Fibre & Wood

Products

9M FY2005

120.1 10.7

10.1

12.4

11.8 165.1

0

50

100

150

$200M

GrossContribution

(S$ M)

GC growth 38%, S$45 million

24%23%

28%26%

51% 20%Growth Over 9M FY2004: 58% 45%


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Gross Contribution growth: Sources

9M FY2004 Volume Growth Margin Growth 9M FY2005

120.1

33.8

11.2 165.1

0

50

100

150

$200M

Gross Contribution(S$ M)

GC growth 37%, S$45 million

75%

25%


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Net Contribution (NC): S$129.3 million


NC growth across all segments

NC per ton growth across all segments



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Net Contribution growth: Segmental Share

9M FY2004 Edible Nuts,Spices & Beans

Confectionery& Beverage

Ingredients


Fibre & WoodProducts

9M FY2005

93.6

9.510.3

6.89.1 129.3

0

50

100

$150M

Net Contribution(S$ M)

NC growth 38%, S$35.7 million

19%29%27%

26%

55% 29%Growth Over 9M FY2004: 37% 41%


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Net Contribution growth: Sources

9M FY2004 Volume Growth Margin Growth 9M FY2005

93.6

27.08.7 129.3

0

50

100

$150M

Net Contribution

(S$ M)

NC growth 38%, S$35.7 million

75%

25%


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Results: 9M FY2005

Segmental P&L


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Segmental analysis: Edible Nuts, Spices & Beans

9M FY20049M FY2005

55.4%8117,1529426,659Net Contribution(S$000)

1,181

S$/Ton

70.5%250,6771,512427,483Revenue(S$000)

33.3%212,188282,772Volume

(metric tons)

Amount S$/Ton Amount % changeDescription

60% of NC growth was derived from Volume Expansion

40% of NC growth was derived from Margin Improvement initiatives.


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S t l l i F d St l & P k d F d


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Segmental analysis: Food Staples & Packaged Foods

9M FY20049M FY2005

37.4%2718,3092825,152Net Contribution(S$000)

527

S$/Ton

67.4%364,073683609,476Revenue(S$000)

29.1%690,591891,826

Volume

(metric tons)




Segmental analysis: Fibre & Wood products


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Segmental analysis: Fibre & Wood products

9M FY20049M FY2005

40.8%8922,3519031,471Net Contribution

1,686

S$/Ton

16.9%425,5531,420497,299Turnover

38.7%252,419350,107Volume





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Results: 9M FY2005

Balance Sheet


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Balance Sheet


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Fixed assets

Investment in Fixed assets amounted to S$14.2 million in 9M FY2005 ascompared to S$5.3 million in 9M FY2004. The major investments were in:

Purchase of Cashew Processing Facility in Brazil

Setting up Rice Milling Facility in Nigeria Enhancing procurement and logistics infrastructure in various origins

Equity & Reserves:

Increased by 143% mainly on account of a successful IPO as under:

S$217.9 mNet proceeds raisedS$10.6 mIPO expenses

S$38.9 m62.81m sharesVendor sale of shares

S$267.4 m431.25m sharesIPO size & Gross Proceeds


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Outlook &

Prospects

Outlook & Prospects


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Outlook & Prospects

Initiatives to broaden and deepen our business franchise are in placeand are expected to generate sustained growth via rising volumesand enhanced margins going forward

Contributing factors to the strong 9M FY2005 performance includefactors that are structural in nature, including growing volumes, betterscale economies & the margin enhancement initiatives yieldingresults. These positive structural trends remain intact. We therefore

continue to be optimistic on the overall business outlook as we headinto 4Q FY2005 and beyond.

Therefore, we believe, that we will do better this year (FY2005)compared to last year (FY2004), and are confident about our full yearFY2005 prospects.


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Dividends

We are targeting a dividend payout ratio of no less than 25% of

NPAT for FY2005.

Note:

Barring any unforeseen circumstances and assuming that there

are no material adverse developments before the end of the

Financial Year, and based on the final recommendation of the

Board.


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Thank You

9 Mths Ended 31 Mar

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