Slides for SIAS Corporate Profile Seminar WILMAR INTERNATIONAL - PDF document

Slides for SIAS Corporate Profile Seminar WILMAR INTERNATIONAL LIMITED 1 September 2010

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

3 • Financial Performance • Questions & Answers • Overview AGENDA

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 • 2 nd 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 Information flows / Visibility across value chain Merchandising Customer Processing Products Origination & Distribution Finance / Risk management / Logistics coordination • Merchandising & • Processing • Products • Origination Distribution - Palm milling, - Bulk oil - Sourcing of palm - Own fleet of liquid crushing, refining, - Consumer packs fruits & crude bulk vessels fractionation, - Oilseeds meal palm oil - Own ports and specialty fats, - Specialty fats - Sourcing of soy jetties biodiesel & - Oleochemicals bean, other - Extensive oleochemicals - Biodiesel oilseeds, rice, distribution network manufacturing - Rice & flour wheat & mixed - Oilseeds crushing - Fertiliser grains - Rice & flour milling - Plantations 6

Key Success Factors Extensive High Quality Distribution Network High Brand Value Large Scale Low Cost Integrated Plant 7

Strong Brands Consumer pack in China Soy meal China # 2 # 1 # 1 Luhua Arawana Golden Carp Gold Ingots Wonder Farm 8

Indonesia Strong Brands 9 India # 1

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 of branded consumer pack oils • Ukraine: Largest edible oils refiner • Africa: Leading importer of edible oils into East Africa 10

Leading player in growing edible oils market High growth potential in key markets • Population growth will continue to drive Room for demand growth in key markets consumption of edible oils and consumer products 70 • Per capita consumption in China and EU-27 India are still lagging the levels of the SG 60 US, EU-27 and other developed Asian countries Per capita usage of edible oils (kg) 50 US • Wilmar is well positioned to capitalise on Hong Kong this potential growth in demand 40 Population growth set to drive consumption Taiwan 30 World population (Bn) 8.1 bn China Strong growth potential 7.5 bn 20 on rising affluence India 6.8 bn 10 0 0 15,000 30,000 45,000 60,000 2010E 2020E 2030E 2009E GDP per capita Source: Oil World, CIA World Factbook 11

Leading player in growing edible oils market 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, on 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) China 19% Others, 28% WILMAR Araw ana, 37% Others >40% direct 41% market share >40% direct Wonder Farm, 3% Europe market share Duoli, 3% 17% Fortune, 9% Gold Ingot, 3% US Orchid, 3% Luhua, 11% Indonesia 8% Koufu, 2% India 4% 11% Golden Carp, 1% Source: Oil World, Euromonitor 12

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 13

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 14

Sucrogen will allow Wilmar to build a leading position in sugar, starting with Indonesia Sucrogen - platform to jump-start Expertise to help develop a large-scale Wilmar’s sugar aspirations integrated operation in Indonesia • World-class sugar business • Structural sugar deficit exists in the Indonesian market resulting in high • Excellent management team domestic sugar prices vs. global • Upside in the current business - Sub-scale domestic production - Raise production by increasing area - Growing domestic demand under cane in growing regions • Availability of land for large scale - Benefit from increasing sugar prices development due to increased consumption from developing countries, especially in Asia - Wilmar has been offered a ~200k Ha - Growth potential in renewable energy land concession in Papua for sugar cultivation • Potential to expand operations to • Wilmar has plantation, manufacturing China and India where Wilmar has and distribution capabilities significant manufacturing and distribution facilities • Sucrogen’s operations base in Townsville, Queensland, provides • Brings Wilmar into the big league in ideal base for staff to develop our sugar Papua project (~2.5 hrs flight) 15

16 Financial Performance

Annual Revenue Revenue Volume US$’million ‘million MT 30,000 32.7 35.0 34.7 30.0 29,145 25,000 23,885 24.2 25.0 20,000 18.6 20.0 16.1 15,000 16,466 15.0 13,524 10,000 10.0 5,000 5.0 7,016 0 0.0 FY06 FY07 FY08 FY09 1H10 Volume 17

1H10 746 1,882 2009 Annual Net Profit 1,530 2008 18 2007 580 2006 216 US$' million 2,000 1,500 1,000 500 0

Pretax Profit by Business Segment FY09 1H10 Plantations & Others Plantations & palm oils mills Others Associates 5.5% palm oils mills 14.9% 4.1% 7.7% Consumer 19.3% Associates Consumer products 2.3% products 11.0% 8.2% 29.2% 33.8% 34.4% 29.5% Palm & laurics Palm & laurics Oilseeds Oilseeds & grains & grains * Exclude unallocated expenses/income 19

20 Thank You