PT Dharma Satya Nusantara Tbk · IDX:DSNG
PT Dharma Satya Nusantara Tbk — H1 2016 Earnings Presentation
16 slides from PT Dharma Satya Nusantara Tbk's earnings presentation, Nov 8, 2016
Slide 1: DSN Group H1 2016 Results Update
DSN Group H1 2016 Results Update DSN Group is a growing, and green, producer of palm oil and wood products sold into global markets. Our plantation operations are among the most productive in the sector. The DSN Group was originally established as a wood products manufacturer. We expanded into the p
Slide 2: Our plantations five-year track record highlights strong growth and consistently effective and efficient management
Our plantations five-year track record highlights strong growth and consistently effective and efficient management 2 PT Dharma Satya Nusantara Tbk (DSNG.JK)
Slide 3: Our estates are clustered across East, West and Central Kalimantan, with acquisitions AAN & MNS in the West
Our estates are clustered across East, West and Central Kalimantan, with acquisitions AAN & MNS in the West DSN acquired two 18,000 ha estates in 2015. AAN is partially Nucleus (‘000 ha) planted while MNS is greenfield. Total 163.6 Planted 69.4 By the end of H1, we had 69,368 ha nucleus and 56,279 h
Slide 4: Our planted area has grown by acquisition and planting since 2001, resulting in a relatively young age profile
Our planted area has grown by acquisition and planting since 2001, resulting in a relatively young age profile =1,000ha Acquiring AAN in 2015 provided Our plasma area spans 20,920 ha at nearly 1,900 ha of nucleus and 800 ha the end of H1, or 30% of our of plasma, of which 1,200 ha were planted area.
Slide 5: Our planting and age profile suggests an average 10% annual growth in FFB production through 2018
Our planting and age profile to date suggests an average 10% annual growth in FFB production through 2018 =1,000ha Our planted areas mature by 2019. standard FFB yield as high as 26.5 Yield expansion of the Young tons/ha (Class II soil) in 2020, up Mature trees should offset the from a standard yiel
Slide 6: Our younger estates have achieved or exceeded the standard yields for Class II soil
Our younger estates have achieved or exceeded the standard yields for Class II soil over a number of years The standard FFB yields, applied to our current age profile, suggest FFB volume could continue to increase through 2020 without additional planting, barring environmental factors. Our mature ar
Slide 7: The adverse weather in 2015 has resulted in nucleus volumes declining in Q2 by 33.1%
The adverse weather in 2015 has resulted in nucleus volumes declining in Q2 by 33.1% from the previous year In Q2, DSN produced 229 thousand tons FFB from nucleus estates, with an additional 25 thousand tons from plasma. Nucleus FFB output declined by 33.1% from Q2 2015, with a nucleus yield of 4.1
Slide 8: Our most developed cluster is nearly the size of Singapore
Our most developed cluster - with 5 estates, 5 CPO Mills and 56,000 ha - is nearly the size of Singapore 71% of our planted area is located Each mill’s capacity can in a contiguous block in East accommodate peak output from a Kalimantan - an area the size of 10,000 ha estate, while mills Singapore.
Slide 9: A 4.9% improvement in our OER helped offset the drop in FFB production
A 4.9% improvement in our OER helped offset the drop in FFB production, while FFA levels improved to 2.23% CPO production contracted by 25.8% in Q2 2016, while the Oil Extraction Rate (OER) expanded to 24.4% for the quarter. Palm Kernel production fell by 16.8% to 12,420 tons, with most of the outpu
Slide 10: DSN's productivity is consistently ahead of peers, whatever the age profile
DSN’s productivity, at 6.2 tons of CPO per hectare in 2015, is consistently ahead of peers, whatever the age profile While FFB yields were stable in 2015 at 26.2 tons per hectare, Q2 2016 witnessed a decline of 40.3% year-on-year. This was driven, at least in part, by the extremely dry conditions in
Slide 11: Expanding domestic refining capacity ensures robust demand for our CPO
Expanding domestic refining capacity, coupled with our high-quality product, ensures robust demand for our CPO Our customers are primarily CPO refineries located in Kalimantan and Java, including Smart, Wilmar, Kuala Lumpur Kepong, Musim Mas and Dermaga DSN Estates DSN Ports Kencana Indonesia. DSN C
Slide 12: Costs were lower during the year, leading to expanding margins in Q4
Costs were lower during the year, and the seasonality of fertilizer application led to expanding margins in Q4 Our total cash cost declined by Rp113 billion in 2015, on falling FFB purchases and Other expenses. We produced CPO at a cash cost of Rp4.16 million per ton, for a 10% improvement over 2014
Slide 13: DSN is also a leading wood products manufacturer with reputable brand names
DSN is also a leading wood products manufacturer with reputable brand names & long-standing client relationships We are the 4th largest wood consolidating operations from products manufacturer in Surabaya and Gresik to a new Indonesia, producing panels, processing plant in Lumajang by engineered flo
Slide 14: H1 2016 Financial Summary
H1 2016 Financial Summary ** Consolidated adjusted profit excludes the impact of unrealized financing forex gains/losses Note: Annual Financial Statements are audited by Siddharta & Wijaja, Registered Public Accountants - a Member Firm of KPMG International. 14 PT Dharma Satya Nusantara Tbk (DSNG.JK
Slide 15: H1 2016 Operations Summary
H1 2016 Operations Summary H1 2016 Results Update 15
Slide 16: Disclaimer and contact information
For additional information, please refer to our website at: www.dsn.co.id If you have additional questions or requests, you may contact us at: [email protected] DISCLAIMER: This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future pe
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