WILMAR INTERNATIONAL LIMITED 2Q07 RESULTS BRIEFING 14 AUGUST 2007 - PDF document

WILMAR INTERNATIONAL LIMITED 2Q07 RESULTS BRIEFING 14 AUGUST 2007 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. 2 1

PRESENTATION OVERVIEW • Background information • Prospects & Future Plans • 2Q07 Financial Highlights • Questions & Answers 3 BACKGROUND INFORMATION P resenter: Mr KUOK Khoon Hong 4 2

Wilmar International • Headquartered in Singapore and listed on SGX • Asia’s Leading Agribusiness Group after June 07 merger with Kuok Group’s plantation, edible oils, grains & related businesses and restructuring exercise to acquire parent company’s edible oils, oilseeds, grains & related businesses. • Growth strategy : – Oil palm plantations – Palm & laurics merchandising & processing – Further expansion in major consuming markets 5 Capturing the Entire Value Chain of the Agricultural Commodity Processing Business Customer Origin • Merchandising, Shipping & Distribution • Processing • Products • Origination - Owns fleet of liquid - Milling, crushing, - Bulk oil - Plantation bulk vessels refining, fractionation, - Consumer packs - Sourcing of palm - Owns jetties and ports specialty fats, biodiesel - Oilseeds meal fruits & crude - Extensive distribution & oleochemicals - Specialty fats palm oil network manufacturing - Oleochemicals - Sourcing of soya - Oilseeds crushing - Biodiesel bean, oilseeds & - Flour & rice milling - Flour & rice grains 6 3

Leadership Position Post Merger • Largest global processor and merchandiser of palm & lauric oils • One of the largest plantation companies in Indonesia / Malaysia • Largest palm biodiesel manufacturer in the world • China – largest producer of consumer pack edible oils & largest oilseeds crusher, edible oils refiner & specialty fats and oleochemicals manufacturer • India – one of the largest edible oils refiners & a leading producer of consumer pack edible oils • Ukraine – largest edible oils refiner • East & South Africa – leading importer of edible oils 7 Manufacturing Facilities – Malaysia & Indonesia Plants Pre-Acquisition New subsidiary Total No. of Capacity No. of Capacity No. of Capacity As at 30 June 2007 Plants (MT p.a.) Plants (MT p.a.) Plants (MT p.a.) Refining 19 5,420,000 13 3,930,000 32 9,350,000 Fractionation 19 5,420,000 17 3,680,000 36 9,100,000 Palm Kernel & Copra 17 1,900,000 5 610,000 22 2,510,000 Crushing Packing Plant 9 310,000 3 250,000 12 560,000 Palm Oil Milling 20 7,080,000 11 2,280,000 31 9,360,000 Specialty Fats 3 170,000 2 150,000 5 320,000 Fertiliser 2 450,000 - - 2 450,000 Biodiesel 1 350,000 1 100,000 2 450,000 • Associates under pre-acquisition Wilmar – Refining : 860,000 MT p.a.; Fractionation : 790,000 MT p.a. & Crushing : 200,000 MT p.a. • Associates under new subsidiary – Refining : 790,000 MT p.a.; Fractionation : 760,000 MT p.a., Crushing : 280,000 MT p.a. • Total capacities incl. associates – Refining : 11,000,000 MT p.a., Fractionation : 10,650,000 MT p.a. & Crushing : 2,990,000 MT p.a. 8 4

Manufacturing Facilities Under Construction – Malaysia & Indonesia Plants Planned/Under Construction As at 30 June 2007 No. of Plants Capacity (MT p.a.) Refining 1 200,000 Fractionation 2 260,000 Palm Kernel & Copra Crushing 1 20,000 Palm Oil Milling 1 180,000 Biodiesel * 2 700,000 * One of the biodiesel plants above has been commissioned in mid-July 07. 9 Manufacturing Facilities – China Planned/Under As at 30 June 2007 Construction Plants Capacity (MT p.a.) Capacity (MT p.a.) Oilseeds crushing 11,770,000 660,000 Refining 5,700,000 540,000 Consumer oils packing 4,180,000 1,000,000 Oleochemicals 250,000 370,000 Specialty Fats 490,000 _ Flour milling 590,000 920,000 Rice milling 300,000 _ 10 10 5

Global Operations 11 Indonesia & Malaysia - Plantations and Palm Oil Mills 12 6

Indonesia & Malaysia - Manufacturing Plants 13 China – Manufacturing Plants 14 7

China – Sales Office 15 India – Manufacturing Plants 16 8

India – Sales Office 17 Global Markets Products are sold to > 50 countries 18 9

Our Competitive Edge • Capturing Margin across Value Chain • Major presence in Key Producing & Consuming Countries • Strong Shareholder Base • Global Market Intelligence • Stronger Management Team Post Merger 19 Capturing Margin across Value Chain Cost efficiencies : • Manufacturing cost efficiency due to large scale & integrated operations • Efficient logistics planning & reduced cost by loading from own ports/jetties & capitalising on multiple manufacturing locations at the best sites • Marketing cost minimised due to direct marketing to end users • Lower freight cost due to efficient shipping operations. • Energy cost savings from conversion of waste products into energy 20 10

Major Presence in Key Producing &Consuming Countries • Strong merchandising & manufacturing presence in key consuming countries like China, India & Europe • Strong presence in two key tropical oil producing countries – Malaysia & Indonesia • Enhances market intelligence • Provides flexibility in expanding capacity at either origin or destination 21 Strong Shareholder Base • The Kuok Group – one of Asia’s most diversified and dynamic multinational conglomerates • ADM - one of the largest agricultural processors in the world, with excellent technical expertise in oilseeds, edible oils and grain processing 22 11

Global Market Intelligence • Maximising processing margins through timely purchases & sales of raw materials & finished goods • Excellent global market information on demand & supply of oilseeds & edible oils due to: – Large scale origination of crude palm oil, palm kernel and soya beans – Worldwide merchandising network; especially our dominant position in major consumption growth countries for agricultural commodities – Access to shareholders’ information network 23 Stronger Management Team Post Merger • Added breadth & depth of management post merger • Ability to identify & develop business opportunities • Capable merchandising team – Leading global merchandiser of palm & lauric oils and leading merchandiser of processed agri-commodities in China & India – Ability to manage commodity, customer & currency risks • Strong technical team – Ability to build large, integrated manufacturing complexes & operate them efficiently • Experienced plantations development team – Technical expertise in developing plantations & ability to manage local conditions in Indonesia 24 12