Slides for SIAS Corporate Profile Seminar WILMAR INTERNATIONAL - - PDF document

1

WILMAR INTERNATIONAL LIMITED Slides for SIAS Corporate Profile Seminar

September 2010

2

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.

3

AGENDA

• Overview
• Financial Performance
• Questions & Answers

4 4

Overview

Who We Are – Asia’s Leading Agribusiness Group

• 2006: Listed on Singapore Exchange (SGX)
• 2007: Transformational merger with Kuok Group to

form Asia’s leading agribusiness group

• 2nd largest company on the SGX by market

capitalisation

• Constituent of the FTSE Straits Times Index and the

MSCI index

• Operate over 300 manufacturing plants with an

extensive distribution network covering China, India, Indonesia and some 50 other countries to support a well established processing and merchandising business

5

Integrated Business Model

6

Origination Finance / Risk management / Logistics coordination Processing Products Merchandising & Distribution Customer

• Merchandising &

Distribution

• Own fleet of liquid

bulk vessels

• Own ports and

jetties

• Extensive

distribution network

• Processing
• Palm milling,

crushing, refining, fractionation, specialty fats, biodiesel &

• leochemicals

manufacturing

• Oilseeds crushing
• Rice & flour milling
• Origination
• Sourcing of palm

fruits & crude palm oil

• Sourcing of soy

bean, other

• ilseeds, rice,

wheat & mixed grains

• Plantations
• Products
• Bulk oil
• Consumer packs
• Oilseeds meal
• Specialty fats
• Oleochemicals
• Biodiesel
• Rice & flour
• Fertiliser

Information flows / Visibility across value chain

7

Key Success Factors

High Brand Value

Extensive Distribution Network High Quality Large Scale Integrated Plant Low Cost

Strong Brands

8

Consumer pack in China

Luhua Arawana

# 1

Gold Ingots Golden Carp Wonder Farm

# 1 # 2

Soy meal China

Strong Brands

9

India

# 1

Indonesia

Leadership Position

• Largest processor and merchandiser of palm & lauric oils
• One of the largest plantation companies

(237,000 ha planted area)

• Largest palm biodiesel manufacturer
• #1 player in China:

– Largest oilseeds crusher, edible oils processor and specialty fats and oleochemicals manufacturer – Top merchandiser of consumer pack oils – Nationwide distribution network covering more than 2,560 cities, municipalities, counties and districts

• India: One of the largest edible oils refiners. A leading producer
• f branded consumer pack oils
• Ukraine: Largest edible oils refiner
• Africa: Leading importer of edible oils into East Africa

10

11

Leading player in growing edible oils market

Population growth set to drive consumption

World population (Bn)

High growth potential in key markets

• Population growth will continue to drive

consumption of edible oils and consumer products

• Per capita consumption in China and

India are still lagging the levels of the US, EU-27 and other developed Asian countries

• Wilmar is well positioned to capitalise on

this potential growth in demand

Source: Oil World, CIA World Factbook

6.8 bn 7.5 bn 8.1 bn 2010E 2020E 2030E

Room for demand growth in key markets

China EU-27 Hong Kong India SG Taiwan US 10 20 30 40 50 60 70 15,000 30,000 45,000 60,000 2009E GDP per capita Per capita usage of edible oils (kg)

Strong growth potential

• n rising affluence

12

Leading player in growing edible oils market

Europe 17% US 8% India 11% Indonesia 4% Others 41% China 19%

Dominant position in the world’s biggest market

• China is the world’s single largest market for edible oils (19% in 2009)
• Demand is set to grow even further on increasing affluence and urbanisation,
• n top of China’s current low per capita consumption of edible oils
• Wilmar is the largest owner of branded packaged edible oils in China, with over

40% market share and is best placed to capitalise on this growth

Global vegetable oils consumers (2009) Top edible oils brands in China (2009)

>40% direct market share

Source: Oil World, Euromonitor

Araw ana, 37% Luhua, 11% Fortune, 9% Duoli, 3% Others, 28% Wonder Farm, 3% Golden Carp, 1% Gold Ingot, 3% Orchid, 3% Koufu, 2%

WILMAR >40% direct market share

13

Flour and Rice Markets

• China’s consumption of rice and flour

– Rice: 130m MT – Flour: 100m MT

• Fragmented markets – no clear market leader
• Wilmar’s strategy – leverage existing infrastructure to

introduce quality rice and flour

14

Strategic Expansion: Sugar

• Planning a major expansion into sugar with the proposed

acquisition of:

– sugar producer, Sucrogen; – sugar refinery, PT Jawamanis Rafinasi; – sugar trading company, Windsor & Brook; and – the development of sugar production land in Indonesia

• Indonesia has deficit of 2m MT
• Asia has a sugar deficit of some 15m MT
• Only Thailand is a consistent sugar exporter
• Asia’s sugar deficit will grow with population and economic growth

15

Expertise to help develop a large-scale integrated operation in Indonesia Sucrogen - platform to jump-start Wilmar’s sugar aspirations

Sucrogen will allow Wilmar to build a leading position in sugar, starting with Indonesia

• World-class sugar business
• Excellent management team
• Upside in the current business
• Raise production by increasing area

under cane in growing regions

• Benefit from increasing sugar prices

due to increased consumption from developing countries, especially in Asia

• Growth potential in renewable energy
• Potential to expand operations to

China and India where Wilmar has significant manufacturing and distribution facilities

• Brings Wilmar into the big league in

sugar

• Structural sugar deficit exists in the

Indonesian market resulting in high domestic sugar prices vs. global

• Sub-scale domestic production
• Growing domestic demand
• Availability of land for large scale

development

• Wilmar has been offered a ~200k Ha

land concession in Papua for sugar cultivation

• Wilmar has plantation, manufacturing

and distribution capabilities

• Sucrogen’s operations base in

Townsville, Queensland, provides ideal base for staff to develop our Papua project (~2.5 hrs flight)

16

Financial Performance

17

Annual Revenue

Revenue US$’million Volume ‘million MT

13,524 23,885 29,145 16,466 7,016 18.6 34.7 32.7 24.2 16.1

5,000 10,000 15,000 20,000 25,000 30,000 FY06 FY07 FY08 FY09 1H10 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0

Volume

Annual Net Profit

18

216 580 1,530 1,882 746 500 1,000 1,500 2,000 2006 2007 2008 2009 1H10 US$' million

19

7.7% 5.5% 14.9% 29.2% 8.2% 34.4%

Pretax Profit by Business Segment

2.3% 4.1% 19.3% 33.8% 11.0% 29.5%

FY09 1H10

Palm & laurics Consumer products Plantations & palm oils mills Oilseeds & grains Others Palm & laurics Oilseeds & grains Consumer products Plantations & palm oils mills Others Associates Associates

* Exclude unallocated expenses/income

20

Thank You