38   Wilmar International Limited Annual Report 2007
42   Wilmar International Limited Annual Report 2007
Wilmar International Limited Annual Report 2007   43
Wilmar International Limited Annual Report 2007   39
40   Wilmar International Limited Annual Report 2007
Wilmar International Limited Annual Report 2007   41
Wilmar International Limited, founded in 1991 as a palm oil tradingcompany, is today Asia’s leading agribusiness group. It...
Expanding HorizonsCharting Sustainable GrowthPalm oil is one of the fastest growing vegetable oils in the world dueto the ...
1       1)   Oil palm plantation, Sumatra, Indonesia2           2)   Soya beans        43           3)   Biological contro...
1       1)   Bulk oil storage tanks, Sumatra, Indonesia                                                          4   2)   ...
Expanding HorizonsRobust Business Model              The continued expansion of palm plantation       with deep draft next...
Expanding HorizonsBeyond Asia                          From its early days, the Group’s focus has     In Western Europe, d...
1       1)   Integrated processing complex, Lianyungang, China2           2)   Africa – One of Wilmar’s markets        43 ...
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Corporate profile

  1. 1. 38 Wilmar International Limited Annual Report 2007
  2. 2. 42 Wilmar International Limited Annual Report 2007
  3. 3. Wilmar International Limited Annual Report 2007 43
  4. 4. Wilmar International Limited Annual Report 2007 39
  5. 5. 40 Wilmar International Limited Annual Report 2007
  6. 6. Wilmar International Limited Annual Report 2007 41
  7. 7. Wilmar International Limited, founded in 1991 as a palm oil tradingcompany, is today Asia’s leading agribusiness group. It is amongst the largestlisted companies by market capitalisation on the Singapore Exchange.Its business activities include oil palm cultivation, edible oils refining, oilseedscrushing, consumer pack edible oils processing & merchandising, specialtyfats, oleochemicals & biodiesel manufacturing, and grains processing &merchandising. Headquartered in Singapore, its operations are located inmore than 20 countries across four continents, with a primary focus onIndonesia, Malaysia, China, India and Europe. Backed by a staff force of morethan 67,000 people, over 160 processing plants and an extensive distributionnetwork, its products are sold to more than 50 countries globally.Over the years, it has established a resilient integrated agribusiness modelthat captures the entire value chain of the agricultural commodity processingbusiness, from origination and processing to the branding, merchandisingand distribution of a wide range of agricultural products. Through scale,integration and the logistical advantages of its business model, it is ableto extract margins at every step of the value chain, resulting in significantoperational synergies and cost efficiencies.Contents 1 Corporate Profile 18 Operations Review 8 Chairman’s Statement 38 Corporate Social Responsibility 10 Financial Highlights 46 Human Capital Management 12 Board of Directors 48 Risk Management 16 Key Management Team 52 Corporate Governance 17 Corporate Information 61 Financial Report Wilmar International Limited Annual Report 2007 1
  8. 8. Expanding HorizonsCharting Sustainable GrowthPalm oil is one of the fastest growing vegetable oils in the world dueto the rising global demand for food and non-food uses as well as therapid increase in production by Indonesia and Malaysia. Asian demandfor processed agricultural commodities will remain robust, driven by higheconomic growth, large population base and low per capita consumption.Building on our success in Asia as a foundation, Wilmar is expandingbeyond Asia to Africa, Russia/Commonwealth of Independent States (CIS)/Eastern Europe and Western Europe. Wilmar is a major plantation owner with Outside of Asia, the Group is transplanting operations in Indonesia and Malaysia. With its expertise into West Africa to develop the completion of the merger with the oil palm and rubber plantations there. Kuok Group’s palm plantation business, the Experienced partners will assist in Group’s planted acreage has increased to developing the integrated business model over 230,000 hectares with a landbank of by providing local expertise in management, over 500,000 hectares. merchandising and distribution. Wilmar intends to grow its plantation As part of its commitment to promote business through greenfield projects and sustainable palm oil, Wilmar has been a acquisitions to tap on the growing demand member of the Roundtable for Sustainable for palm oil. Total planted acreage is Palm Oil (RSPO) since 2005; and it will strive expected to triple within a decade through to fully integrate the RSPO standards into its new plantings of about 40,000 hectares operational practices to ensure a balance of per year. economic viability with environmental and social interests.2 Wilmar International Limited Annual Report 2007
  9. 9. 1 1) Oil palm plantation, Sumatra, Indonesia2 2) Soya beans 43 3) Biological control at plantations, Sumatra, Indonesia 5 4) Oil palm fruits 5) Arawana cooking oil, Shenzhen, China Wilmar International Limited Annual Report 2007 3
  10. 10. 1 1) Bulk oil storage tanks, Sumatra, Indonesia 4 2) Fractionation, Sumatra, Indonesia 2 5 3) Soft oils refinery, Shenzhen, China 3 4) Oil palm nursery, Indonesia 5) Unloading soya beans, Qinhuangdao, China4 Wilmar International Limited Annual Report 2007
  11. 11. Expanding HorizonsRobust Business Model The continued expansion of palm plantation with deep draft next to its manufacturing acreage in Indonesia and Malaysia is complexes to facilitate shipping and reduce projected to double crude palm oil (CPO) logistics costs. production from 33 million metric tonnes (MT) to over 60 million MT within 10 years. Wilmar’s global distribution and marketing The growth in CPO supply will require network provides excellent marketing additional processing capacities in both information which enables the Group countries. to enhance profitability through timely purchase of raw materials and sale of By vertically integrating its operations, manufactured products. the Group is able to create synergies for operational efficiency and extract margins The Group conducts focused research at every step of the value chain. and development to raise the quality of its products and improve the efficiency of Wilmar’s large and integrated manufacturing its operations. operations benefit from economies of scale through the sharing of common By leveraging on this strong base from infrastructure and overhead costs to lower origination to destination, the Group has unit costs for its products. expanded into complementary products such as specialty fats, oleochemicals, rice As part of its integrated business model, the and flour. Group has built dedicated ports and jetties Integrated Agribusiness Model Origination Processing Consumer Other Products: Bulk Oilseeds Specialty Oleo- Pack Rice, Flour, Edible Oils Meal Fats chemicals Edible Oils Biodiesel Merchandising, Shipping & Distribution Customers Wilmar International Limited Annual Report 2007 5
  12. 12. Expanding HorizonsBeyond Asia From its early days, the Group’s focus has In Western Europe, demand for trans-fat been in Asia. Over the past 17 years, it free palm oil is increasing rapidly due to its has succeeded in building an integrated competitive price and versatility for food agribusiness in the region. Wilmar’s success and non-food uses. Wilmar is expanding is driven by its visionary leadership and and building new facilities to meet this proven management team with expertise rising demand. in merchandising, development of large integrated manufacturing complexes, In Russia, CIS and Eastern Europe, growing plantation management and risk demand due to rising prosperity is making management of commodities. the region an important market for tropical oils. The Group plans to expand the Having established a solid operational base capacities of its joint ventures in Russia in Asia, the Group is leveraging on these and Ukraine in order to capture a greater strengths to expand into new markets share of this growing market. with good agribusiness potential in Africa, Russia/CIS/Eastern Europe and Western Europe. In West Africa, Wilmar plans to develop an integrated agribusiness with plantations, refining and distribution of consumer products with experienced partners.6 Wilmar International Limited Annual Report 2007 Wilmar International Limited Annual Report 2007
  13. 13. 1 1) Integrated processing complex, Lianyungang, China2 2) Africa – One of Wilmar’s markets 43 3) Merchandising team, Wilmar headquarters, Singapore 5 4) Europe, Russia and Africa – Growth regions beyond Asia 5) Adani Wilmar processing complex, Gujarat (Mundra), India Wilmar International Limited Annual Report 2007 7

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