Wilmar International Limited started as a palm oil trading company in 1991 and has since become Asia's leading agribusiness group. It operates across four continents with over 67,000 employees and 160 processing plants. Wilmar has established an integrated business model that captures the entire value chain from origination of raw materials to processing, branding, and distributing agricultural products. The company is now expanding beyond Asia into Africa, Russia, Eastern Europe, and Western Europe by applying its expertise in oil palm and rubber plantations, processing facilities, and global distribution networks.

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7. Wilmar International Limited, founded in 1991 as a palm oil trading
company, is today Asia’s leading agribusiness group. It is amongst the largest
listed companies by market capitalisation on the Singapore Exchange.
Its business activities include oil palm cultivation, edible oils refining, oilseeds
crushing, consumer pack edible oils processing & merchandising, specialty
fats, oleochemicals & biodiesel manufacturing, and grains processing &
merchandising. Headquartered in Singapore, its operations are located in
more than 20 countries across four continents, with a primary focus on
Indonesia, Malaysia, China, India and Europe. Backed by a staff force of more
than 67,000 people, over 160 processing plants and an extensive distribution
network, its products are sold to more than 50 countries globally.
Over the years, it has established a resilient integrated agribusiness model
that captures the entire value chain of the agricultural commodity processing
business, from origination and processing to the branding, merchandising
and distribution of a wide range of agricultural products. Through scale,
integration and the logistical advantages of its business model, it is able
to extract margins at every step of the value chain, resulting in significant
operational 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. Expanding Horizons
Charting Sustainable Growth
Palm oil is one of the fastest growing vegetable oils in the world due
to the rising global demand for food and non-food uses as well as the
rapid increase in production by Indonesia and Malaysia. Asian demand
for processed agricultural commodities will remain robust, driven by high
economic growth, large population base and low per capita consumption.
Building on our success in Asia as a foundation, Wilmar is expanding
beyond 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.
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9. 1 1) Oil palm plantation, Sumatra, Indonesia
2 2) Soya beans
4
3 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. 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, China
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11. Expanding Horizons
Robust 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
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12. Expanding Horizons
Beyond 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.
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Wilmar International Limited Annual Report 2007

13. 1 1) Integrated processing complex, Lianyungang, China
2 2) Africa – One of Wilmar’s markets
4
3 3) Merchandising team, Wilmar headquarters, Singapore
5
4) Europe, Russia and Africa – Growth regions beyond Asia
5) Adani Wilmar processing complex, Gujarat (Mundra), India
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