Indofood Agri Resources Ltd. · SGX:5JS
Indofood Agri Resources — Q3 2008 Earnings Presentation
31 slides from Indofood Agri Resources's earnings presentation, Oct 30, 2008
Slide 1: Company Presentation – Q3 2008 & YTD Sep 2008 Results
INTEGRATED AGRIBUSINESS WITH LEADING BRANDS Company Presentation – Q3 2008 & YTD Sep 2008 Results 30 October 2008
Slide 2: Disclaimer
DISCLAIMER This presentation was prepared solely and exclusively for the parties presently being invited for the purposes of discussion. Neither this presentation nor any of its content may be reproduced, reproduced disclosed or used without the prior written consent of Indofood Agri Resources Ltd.
Slide 3: Presentation Outline
PRESENTATION OUTLINE 1. Business Overview 2. Financial Highlights 3. Plantation Highlights 4 Appendix - Supplemental Information 4. 3
Slide 4: Business Overview
Business Overview IndoAgri ,
Slide 5: Business Overview
Business Overview Integrated Agribusiness Group with Leading Brands Capture value from seeds to consumers Research & Palm Oil / Copra Finished Development Plantations Refineries Mills Products Oil Palm Seed Breeding Distribution 5
Slide 6: Operations Overview
Operations Overview • O off the One th largest l t plantation l t ti owners in i Indonesia I d i with ith 455,910 455 910 h ha lland dbbank, k off which 201,645 ha is planted. ¾ Target to expand oil palm planted area to 250,000 ha by end-2010. ¾ Develop 18,600 ha sugar cane plantation and operate 2
Slide 7: Financial Highlights
Financial Highlights IndoAgri ,
Slide 8: Results Summary – YTD 08
Results Summary – YTD 08 Revenue Rp bn 3,500 • Revenue rose 122% to Rp9.4 trillion 3,000 2,500 • Higher EBITDA of Rp2.9 trillion, up 183% yoy 2,000 1,500 1,000 • EDITDA margin rose to 31% vs. 24% in YTD 07 500 0 • Strong performance driven by:- Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308
Slide 9: Financial Highlights
Financial Highlights YTD 08 EBITDA tripled on increased volume volume, higher selling prices Rp bn Description YTD 08 YTD 07 Growth Q308 Q208 Growth Sales 9 355 9,355 4 217 4,217 122% 3 234 3,234 3 271 3,271 (1%) EBITDA 2,857 1,009 183% 788 937 (16%) EBITDA % 31% 24% 24% 29% Gains arising from chang
Slide 10: Segment Information
Segment Information Rp bn SALES EBITDA EBITDA% DESCRIPTION YTD 08 YTD 07 YTD 08 YTD 07 YTD 08 YTD 07 Plantations 5,452 1,444 2,732 970 50%* 67% IndoAgri 2,492 1,444 1,501 970 60% 67% Lons m Lonsum 2 960 2,960 - 1 232 1,232 - 42% - Cooking Oil & 5,247 3,185 212 107 4% 3% Fats C Commodity dit 1 352 1,
Slide 11: Segment Information – YTD 08
Segment Information – YTD 08 Plantation di division ision remains the ke key earnings contrib contributor tor EXTERNAL SALES EBITDA* 3% 13% 7% 31% IndoAgri 49% L Lonsum 41% 56% 90% Plantation Cooking Oil & Margarine Commodity * EBITDA before eliminations 11
Slide 12: Sales Breakdown
Sales Breakdown St o g CPO Strong C O volume ou eg growth o t from o acquisitions acqu s t o s & organic o ga c growth go t Cooking Oil sales grew 17% in YTD 08 YTD 08 YTD 07 Growth Q308 Q208 Growth Plantation (MT) • CPO 531,024 217,423 144% 186,784 175,080 7% • Palm Kernel 115,454 47,053 145% 40,65
Slide 13: Cooking Oil & Fats Sales
Cooking Oil & Fats Sales In ‘000 MT Sales Volume Cooking Oil 114 120 102 106 105 85 86 91 91 90 79 Inc* 17% Q1 Q2 Q3 Q4 Sales Volume Margarine 56 54 50 43 45 40 40 41 41 38 37 Dec* 13% Q1 Q2 Q3 Q4 Sales Value (Rp bn) 1,792 1 901 1,901 1,554 1,313 1,218 2006 Inc* 1,051 2007 65% 937 820 810 585 642 20
Slide 14: Annual Cooking Oil & Fats Sales Volume
Annual Cooking Oil & Fats Sales Volume In ‘000 MT Cooking Oil Margarine 371 371 183 177 178 173 172 322 327 309 290 124 2003 2004 2005 2006 2007 9MFY08 2003 2004 2005 2006 2007 9MFY08 14
Slide 15: Revenue by Key Categories – YTD 08
Revenue by Key Categories – YTD 08 Diversified end-user market External Sales 8% 20% 20% 11% Consumer Pack 2% 2% Semi-Consumer Semi Consumer Pack 38% 8% 16% 16% Industrial 22% 3% C Consumer Cooking Oil Margarine & Shortening 13% Crude Palm Oil & Palm Kernel 10% Industrial Other Plantation Crops Crud
Slide 16: Revenue by Geographical Market – YTD 08
Revenue by Geographical Market – YTD 08 Indonesia do es a remains e a s tthe e key ey market a et 15% 6% 3% 68% 8% Indonesia Asia Europe Africa, Middle East and Oceania America 16
Slide 17: Financial Position
Financial Position Balance sheet remains strong Rp bn Description 30 Sep 2008 31 Dec 2007 TOTAL ASSETS 22,333 18,812 Cash 1 677 1,677 1 702 1,702 TOTAL LIABILITIES 10,246 8,991 Interest Bearing Debt 5,787 5,343 TOTAL SHAREHOLDERS FUNDS 8,709 7,156 Net Debt / EBITDA Ratio ( annualized) 1 1x 1.1x 2 3x
Slide 18: Plantation Highlights
Plantation Highlights IndoAgri ,
Slide 19: Plantation Highlights
Plantation Highlights In Hectares 30 Sep 2008 31 Dec 2007 Increase Total Land Bank(1) 455,910 406,519 49,391 • IndoAgri(1) 286,001 237,262 48,739 • Lonsum 169,909 169,257 652 Total Planted Area(1) 201,645 186,982 14,663 • IndoAgri(1) 109,493 97,000 12,493 • Lonsum 92,152 89,982 2,170 Planted Area Oi
Slide 20: Hectare Statement – Sep 2008
Hectare Statement – Sep 2008 IndoAgri Lonsum Group Oil Palm P l Plantations Planted Mature Immature Mature Immature Location Area (hectares) (hectares) (hectares) (hectares) Riau 56,195 808 - - 57,003 North Sumatra - - 31,095 3,338 34,433 South Sumatra - 10,878 21,610 11,191 43,679 West Kalimantan 1
Slide 21: Oil Palm Plantation Highlights
Oil Palm Plantation Highlights Nucleus FFB up 97% on acquisitions & organic growth YTD 08 YTD 07 Growth Q308 Q307 Growth Planted Area(1) (Ha) 173,059 81,818 112% 173,059 81,818 112% Mature Area(1) (Ha) 124,173 61,532 102% 124,173 61,532 102% FFB (‘000 MT) 2,345 967 142% 851 372 129% - Nucleus produc
Slide 22: Oil Palm Plantation Production
Oil Palm Plantation Production In ‘000 MT FFB (nucleus) 693 569 582 573 417 Inc* 358 350 2006 254 281 303 295 97% 2007 2008 Q1 Q2 Q3 Q4 Total CPO 187 170 161 168 Inc* 94 2006 82 79 141% 65 69 68 58 2007 2008 Q1 Q2 Q3 Q4 Total Palm Kernel 44 37 37 38 2006 Inc* 20 2007 153% 18 17 14 14 15 2008 12 * Co
Slide 23: Annual Oil Palm Plantation Production
Annual Oil Palm Plantation Production In ‘000 MT FFB (Nucleus) CPO (Total) 1 844 1,844 519 1,506 1,381 1 319 1,319 1 295 1,295 1,324 384 315 299 299 300 2003 2004 2005 2006 2007 9MFY08 2003 2004 2005 2006 2007 9MFY08 23
Slide 24: Age Profile of Oil Palm Plantations – Sep 2008
Age Profile of Oil Palm Plantations – Sep 2008 FFB growth gro th potential with ith young o ng plantation age profile In Hectares Average Up to 3 4–6 7 to 20 Above Total Age years years years 20 years IndoAgri 12 32,182 5,086 39,956 24,002 101,226 Lonsum 11 12,543 11,407 42,056 5,827 71,833 Total 11
Slide 25: Summary
Summary • Cooking oil sales volume grew 17% year on year • 61,218 ha under 7 years of age – FFB volume growth will continue • 87,290 ha (70%) of mature oil palm in North Sumatra and Riau ¾ Lowest cost of production. ¾ Position the Group well in low CPO price environment environment. • Expect cost pr
Slide 26: Appendix
Appendix Supplemental Information 26
Slide 27: Plantation Highlights
Plantation Highlights YTD 08 YTD 07 Growth FY07* FFB Production Nucleus (‘000MT) 1,844 936 97% 1,506 • IndoAgri 1,089 936 16% 1,318 • Lonsum 755 - - 188 FFB Purchased from Plasma & 3rd 501 31 n/m 211 Parties (‘000 ( 000 MT) • IndoAgri 166 31 n/m 84 • Lonsum 335 - - 127 FFB Yield (MT / Ha) 14.8 14 8
Slide 28: Plantation Highlights
Plantation Highlights YTD 08 YTD 07 G Growth th FY07* CPO Production (‘000MT) 519 216 141% 384 • IndoAgri 274 216 27% 312 • Lonsum 245 - - 72 CPO Extraction Rate (%) 22.6% 22.4% 22.5% • IndoAgri 21.8% 22.4% 22.3% • Lonsum 23.4% - 23.3% PK Production (‘000 MT) 119 47 153% 85 • IndoAgri 62 47 31% 69 •
Slide 29: Production Capacity as of Sep 2008
Production Capacity as of 30 Sep 2008 N th North S th South Annuall processing A i Facilities Riau Sumatra Sumatra Java Kalimantan Sulawesi Total capacity (tonnes) Palm Oil Mill 6 4 6 - 2 - 18 3,756,000 FFB Copra - - - - - 3 3 270,000 Copra Crushing Refineries -Refinery Refinery - 1 - 2 - 1 4 885,00
Slide 30: Contact Us
Contact Us If you need further information, please contact: Indofood Agri Resources Ltd Ltd. 80 Raffles Place #22-23 UOB Plaza 2 Singapore 048624 Tel +65 6557 2389 Fax: +65 6557 2337 Mr Isaac Chow Investor Relations Manager Indofood Agri g Resources Ltd. Email: [email protected] www.indofoodag
Slide 31: Thank You
THANK YOU IndoAgri ,
Indofood Agri Resources — Q3 2008 Earnings Presentation on 6ix