Indofood Agri Resources Ltd. · SGX:5JS

Indofood Agri Resources — FY2007 Earnings Presentation

29 slides from Indofood Agri Resources's earnings presentation, 2008

  1. Slide 1: Company Presentation – 2007 Results

    INTEGRATED PLANTATION WITH LEADING BRANDS Company Presentation – 2007 Results

  2. 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, disclosed or used without the prior written consent of Indofood Agri Resources Ltd. This presen

  3. Slide 3: Presentation Outline

    PRESENTATION OUTLINE 1. Integrated Oil Palm Plantations Business Model 2. Strategic Direction 3. IndoAgri FY2007 Results - Highlights • Financial Highlights • Financial Position • Segment Information • External Sales • Plantation Production • Cooking Oil & Fats Sales • Commodity Sales • Plantation H

  4. Slide 4: Integrated Oil Palm Plantations Business Model

    Integrated Oil Palm Plantations Business Model Research & Palm Oil / Copra Development Plantations Refineries End Products Mills Oil Palm Seed Breeding • Cooking Oil • Margarine • Shortening • Coconut Oil Strengthened by acquisition of Lonsum 4

  5. Slide 5: Strategic Direction

    Strategic Direction PLANTATION • Continue to expand new planting area to achieve 250,000 ha of planted area by 2010 • IndoAgri to plant 37,000 ha in 2008 • Integration of Lonsum COOKING OIL & FATS • Strengthen brands’ identity and brand loyalty by Advertising & Promotion programs, to build brand equ

  6. Slide 6: IndoAgri FY2007 Results – Highlights

    IndoAgri FY2007 Results – Highlights • Revenue increased by 59% to Rp 6,506 bn • Gross Profit increased by 95% to Rp 1,964 bn, margin from 25% to 30% • EBITDA increased by 94% to Rp 1,552 bn, margin from 20% to 24% • Profit after Tax increased by 34% to Rp 994 bn • Significant increase in results dr

  7. Slide 7: Financial Highlights

    Financial Highlights Rp bn Description FY2007 FY2006 Growth Sales 6,506 100% 4,089 100% 59% Gross Profit 1,964 30% 1,009 25% 95% EBITDA 1,552 24% 801 20% 94% Gains arising from changes in 202 488 (58%) fair value of biological assets Operating Profit 1,602 25% 1,178 29% 36% Tax Expense 495 8% 352 9%

  8. Slide 8: Financial Position

    Financial Position - Growing Business with low gearing Rp bn Description FY2007 FY2006 TOTAL ASSETS 18,830 5,586 Cash 1,702 322 TOTAL LIABILITIES 9,009 2,125 Interest Bearing Debt 5,343 1,093 TOTAL EQUITY 9,821 3,461 Net Debt/Equity Ratio 0.37x 0.22x 8

  9. Slide 9: IndoAgri FY2007 Results

    Rp bn IndoAgri FY2007 Results 6,506 SALES 4,089 2,288 Inc 1,579 1,202 1,436 1,135 1,261 59% 850 844 Q1 2007 Q1 2006 Q2 2007 Q2 2006 Q3 2007 Q3 2006 Q4 2007 Q4 2006 FY 2007 FY 2006 1,552 EBITDA 801 591 451 Inc 310 302 200 240 94% 133 126 Q1 2007 Q1 2006 Q2 2007 Q2 2006 Q3 2007 Q3 2006 Q4 2007 Q4 2006

  10. Slide 10: Segment Information

    Segment Information Rp bn SALES EBITDA EBITDA Margin DESCRIPTION FY2007 FY2006 FY2007 FY2006 FY2007 FY2006 Plantations 2,678 1,305 1,482 688 55.4% 52.7% Cooking Oil & Fats 4,403 2,973 136 92 3.1% 3.1% Commodity 1,175 717 28 (10) 2.4% (1.4%) Elimination & (1,750) (906) (94) 31 Adjustment Total 6,506

  11. Slide 11: Segment Information – FY2007

    Segment Information – FY2007 SALES EBITDA Rp 6,506 bn Rp 1,552 bn 18% 14% 8% 2% Plantation Cooking Oil 68% Commodity 90% 11

  12. Slide 12: External Sales

    External Sales Q4 FY 2007 2006 % 2007 2006 % Volume (‘000 tons) • Cooking Oil 90 91 (1%) 371 371 0.0% • Margarine 41 45 (8%) 183 178 3.3% Sales Value (Rp bn) • Plantation 720 273 163% 948 415 128% • Cooking Oil & Fats 1,218 810 51% 4,403 2,962 49% • Commodity 352 178 98% 1,156 712 62% 12

  13. Slide 13: Diversified End-User Markets

    Diversified End-User Markets Revenue (FY2007) Consumer 3% 19% Industrial 15% 21% Consumer Pack 44% 2% Semi-Consumer Pack 25% 22% Industrial Cooking Oil Margarine & Shortening 12% Other intermediate & by-products Coconut OIl 13

  14. Slide 14: Revenue by Geographical Market

    Revenue by Geographical Market 2%3% 12% Indonesia Asia 11% Europe Africa, Middle East 72% and Oceania America 14

  15. Slide 15: Plantation Production (excluding Lonsum)

    In MT Plantation Production (excluding Lonsum) 1,317,985 1,323,551 FFB 416,595 Dec 357,791 384,594 280,615 253,699 294,986 302,828 350,428 0.4% Q1 2007 Q1 2006 Q2 2007 Q2 2006 Q3 2007 Q3 2006 Q4 2007 Q4 2006 FY 2007 FY 2006 312,448 300,169 CPO Inc 65,242 68,314 81,999 93,516 96,893 79,220 4% 69,087

  16. Slide 16: Cooking Oil & Fats Sales

    Cooking Oil & Fats Sales 370,909 371,038 (in MT) Sales Volume Cooking Oil Inc 105,376 114,469 0% 84,991 90,654 86,387 90,018 90,832 79,222 Q12007 Q12006 Q2 2007 Q2 2006 Q3 2007 Q3 2006 Q4 2007 Q4 2006 FY2007 FY2006 183,474 177,655 Sales Volume Margarine Inc 50,456 54,130 55,865 3% 37,944 40,094 36,9

  17. Slide 17: Commodity Sales

    Commodity Sales 108,715 86,554 (in MT) Sales Volume Coconut oil & derivatives 37,714 34,201 Inc 25,272 22,800 19,440 14,000 18,022 23,819 26% Q12007 Q12006 Q2 2007 Q2 2006 Q3 2007 Q3 2006 Q4 2007 Q4 2006 FY2007 FY2006 44,462 42,056 Sales Volume Palm Oil & Derivatives 20,884 Inc 13,525 6% 10,985 11,5

  18. Slide 18: Plantation Highlights

    Plantation Highlights In Hectares 31 Dec 2007 31 Dec 2006 Increase Total Land Bank *) 406,519 138,542 265,136 • IndoAgri 237,262 138,542 98,720 • Lonsum 169,257 - 166,416 Planted Area Oil Palm 161,457 67,105 94,352 • IndoAgri 91,985 67,105 24,880 • Lonsum 69,472 - 69,472 Mature Area Oil Palm 118,030

  19. Slide 19: Age Profile of Oil Palm Plantations

    Age Profile of Oil Palm Plantations In Hectares Up to 3 4–9 10 to 20 Above 20 Total years years years years IndoAgri – 11 years 26,951 11,819 44,356 8,859 91,985 Lonsum – 9 years 19,858 10,114 34,577 4,923 69,472 Total – 10 years 46,809 21,932 78,933 13,782 161,457 Percentage of total 29% 14% 49% 8%

  20. Slide 20: Hectare Statement – Combined Group

    Hectare Statement – Combined Group Mature Immature Total Location (1) plantations plantations Planted Area % (hectares) (hectares) (hectares) Riau 54,624 2,379 57,003 31% North Sumatra 34,957 5,578 40,535 22% South Sumatra 23,486 20,206 43,692 23% West Kalimantan 10,717 7,915 18,632 10% East Kaliman

  21. Slide 21: Plantation Highlights excluding Lonsum

    Plantation Highlights excluding Lonsum FY2007 FY2006 Growth FFB Production (‘000 tons) 1,318 1,324 (0.4%) *) FFB Yield (Ton / Ha) 20.2 22.3 FFB Production – Plasma (‘000 tons) 84 3 n.m. CPO Production (‘000 tons) 312 300 4% CPO Extraction Rate (%) 22.3 22.7 PK Production (‘000 tons) 69 63 10% PK Ext

  22. Slide 22: Synergies with Lonsum

    Synergies with Lonsum • Supply of high quality seeds for plantings - Lonsum seeds together with IndoAgri seedlings will be used to ensure high yields for future plantings - Self sufficient in seedlings for new plantings • Combined strength of R&D and breeding - Agronomy: the search for optimal crop

  23. Slide 23: Lonsum Integration Update

    Lonsum Integration Update Purchasing • Combined purchasing of fertilizer, diesel, etc. Most savings will come through from Q2 2008 onwards R&D and • Detailed sharing of expertise and alignment of best practice Breeding • IndoAgri will purchase seeds from Lonsum Transport • Mechanization of fertilize

  24. Slide 24: Thank You

    THANK YOU 24

  25. Slide 25: Hectare Statement IndoAgri

    Hectare Statement IndoAgri Mature Immature Total Location (1) plantations plantations Planted Area % (hectares) (hectares) (hectares) Riau 54,624 2,379 57,003 59% South Sumatra - 6,890 6,890 7% West Kalimantan 10,717 7,915 18,632 19% East Kalimantan 5,015 9,459 14,474 15% Total 70,356 26,644 97,000

  26. Slide 26: Hectare Statement Lonsum

    Hectare Statement Lonsum Mature Immature Total Location (1) plantations plantations Planted Area % (hectares) (hectares) (hectares) North Sumatra 34,957 5,578 40,535 45% South Sumatra 23,486 13,316 36,802 41% Java 2,019 535 2,555 3% Sulawesi 4,410 1,124 5,535 6% East Kalimantan 4,556 - 4,556 5% Tota

  27. Slide 27: Location Map as of 31 Dec 2007 (excl. plasma)

    Location Map as of 31 Dec 2007 (excl. plasma) Copra Mill 135,000 MT/year Refinery 52,500 MT/year Refinery 210,000 MT/year Fractionation 52,500 MT/year Fractionation 90,000 MT/year West Kalimantan (5) IndoAgri 18,632 ha North Sumatra (12) East Kalimantan (14) Lonsum 40,535 ha IndoAgri 14,474 ha Lonsu

  28. Slide 28: Production Capacity as of 30 Dec 2007

    Production Capacity as of 30 Dec 2007 North South Annual processing Facilities Riau Sumatra Sumatra Java Kalimantan Sulawesi Total capacity (tonnes) Palm Oil Mill 6 4 6 - 1 - 17 3,594,000 FFB Copra - - - - - 3 3 270,000 Copra Crushing Refineries -Refinery - 1 - 2 - 1 4 885,000 CPO -Fractionation - 1

  29. Slide 29: Plantation Highlights – Lonsum Full Year

    Plantation Highlights – Lonsum Full Year FY 2007 FY 2006 Growth FFB Production (‘000 tons) 2,393 1,324 81% • IndoAgri 1,318 1,324 - • Lonsum 1,075 - - FFB Yield (Ton / Ha) 20.3 22.3 • IndoAgri 20.2*) 22.3 • Lonsum 20.2 - CPO Production (‘000 tons) 663 300 121% • IndoAgri 312 300 4% • Lonsum 351 - -

Indofood Agri Resources — FY2007 Earnings Presentation on 6ix