1 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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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.
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2
Agenda
1 4Q2012 Financial Performance
2 Business Outlook
3 Questions and Answers
3
4Q2012 Financial Performance
3
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
4
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-op6
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
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
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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
• 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$14.1 million
6
Business Segment results: Consumer Products
10
• Volume was lifted in 4Q12 and FY12 due to stronger demand for the Group’s flour and rice products
• Margin improved significantly as a result of lower feedstock cost while a price increase restriction was in effect for the first seven months of FY2011
• PBT declined due to lower palm oil prices, higher unit production cost and overall drop in production yield in FY12
• Higher FFB yield in 4Q12 on improved crop trend in Sabah and Sumatra but lower for FY12 fell due to low crop trend in Sarawak and the after-effects of dry weather in Sabah, Kalimantan and Sumatra in 9M12
• Unit production cost rose on the back of lower production yield, higher fertiliser and labour cost
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Plantation Age Profile
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31 Dec 2012 0 to 3 yrs 4-6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total
Indonesia 14,199 67,082 60,018 19,956 25,442 186,697
Malaysia 3,831 3,423 18,132 15,493 17,892 58,771
Africa 1,148 1,608 6,627 4 793 10,180
Total planted area 19,178 72,113 84,777 35,453 44,127 255,648
% of total planted area 7.5% 28.2% 33.2% 13.9% 17.2% 100.0%
18 *Operating cash flow is before working capital changes
Gearing
19
US$ 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)
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Funding and Liquidity
20
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
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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