Indofood Agri Resources Ltd. · SGX:5JS

Indofood Agri Resources — Q3 2007 Earnings Presentation

28 slides from Indofood Agri Resources's earnings presentation, October 2007

  1. Slide 1: Integrated Plantation with Leading Brands

    INTEGRATED PLANTATION WITH LEADING BRANDS Company Presentation – Completion of Acquisition on Lonsum & Q3 2007 Results October 2007

  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. IndoAgri Q3 Results - Highlights 2. Financial Highlights 3. Segment Information 4. Plantation Highlights 5. Plantation Sales 6. Cooking Oil & Fats Sales 7. Commodity Sales 8. London Sumatra Acquisition 3

  4. Slide 4: IndoAgri Q3 Results – Highlights Year to Date

    IndoAgri Q3 Results – Highlights Year to Date • Revenue increased by 49.1% to Rp 4,217 bn • EBITDA increased by 92.8% to Rp 961 bn • EBITDA Margin increased to 22.8% from 17.6% • Profit after Tax increased by 70.1% to Rp 700 bn • Completion of Acquisition of 56.4% shareholding in Lonsum • Remaining

  5. Slide 5: Financial Highlights

    Financial Highlights Rp bn YTD Q3 2007 YTD Q3 2006 DESCRIPTION (Unaudited) (Unaudited) Growth FY 2006 SALES 4,217 100.0% 2,828 100.0% 49.1% 4,089 100.0% GROSS PROFIT 1,161 27.5% 677 24.0% 71.5% 1,007 24.6% EBITDA 961 22.8% 499 17.6% 92.8% 801 19.6% Gains arising from changes in fair value of biologi

  6. Slide 6: Sales, EBITDA and Operating Profit

    Rp bn IndoAgri Q3 Results 4,217 4,089 2,828 Sales 1,436 1,579 1,202 1,135 850 844 Q12007 Q12006 Q2 2007 Q2 2006 Q3 2007 Q3 2006 YTD YTD FY2007 FY2006 Sep 07 Sep 06 961 801 EBITDA 451 499 310 200 240 133 126 Q12007 Q12006 Q2 2007 Q2 2006 Q3 2007 Q3 2006 YTD YTD FY2007 FY2006 Sep 07 Sep 06 1,176 1,051

  7. Slide 7: Segment Information

    Segment Information Rp bn SALES EBITDA EBITDA Margin YTD YTD YTD YTD YTD YTD DESCRIPTION Q3 07 Q3 06 Q3 07 Q3 06 Q3 07 Q3 06 Plantations 1,444 954 930 505 64.4% 52.9% Cooking Oil & Fats 3,185 2,164 120 79 3.8% 3.6% Commodity 818 536 31 (43) 3.8% (7.9%) Elimination & Adjustment (1,230) (825) (120) (4

  8. Slide 8: Plantation Highlights (excluding Lonsum)

    Plantation Highlights (excluding Lonsum) In Hectares 30 Sep 2007 31 Dec 2006 Increase Total Land Bank *) 224,083 **) 138,542 85,541 • Riau 60,755 60,755 - • Other Regions 163,328 77,787 85,541 Planted Area Oil Palm 81,818 66,900 14,918 • Riau 56,801 56,610 191 • Other Regions 25,017 10,290 14,727 Ma

  9. Slide 9: Plantation Highlights

    Plantation Highlights YTD Q3 2007 YTD Q3 2006 Growth FY2006 FFB Production (‘000 tons) 933 973 (4.1%) 1,324 • Riau 931 971 (4.2%) 1,320 • Other Regions 3 2 27.7% 4 FFB Yield (Ton / Ha) 15.2 16.4 (7.7%) 22.3 • Riau 17.1 17.9 (4.6%) 24.4 • Other Regions 0.4 0.4 (8.5%) 0.8 CPO Production (‘000 tons) 21

  10. Slide 10: External Sales

    External Sales Q3 YTD September 2007 2006 % 2007 2006 % Volume (‘000 tons) • Cooking Oil 105,376 114,469 (7.9%) 281,020 280,078 0.3% • Margarine 54,130 55,865 (3.1%) 142,531 132,926 7.2% Sales Value (Rp bn) 1,579 1,135 39.2% 4,217 2,828 49.1% • Plantation 81 47 74.6% 228 142 61.2% • Cooking Oil & Fa

  11. Slide 11: Plantation Production

    In MT Plantation Production 1,323,551 933,391 973,122 416,595 294,986 357,791 280,615 302,828 253,699 FFB Q12007 Q12006 Q2 2007 Q2 2006 Q3 2007 Q3 2006 YTD Sep YTD Sep FY2007 FY2006 07 06 300,000 215,555 220,949 93,516 68,314 81,999 65,242 69,087 58,346 CPO Q12007 Q12006 Q2 2007 Q2 2006 Q3 2007 Q3 2

  12. Slide 12: Cooking Oil & Fats Sales

    Cooking Oil & Fats Sales 370,909 281,020 280,078 Cooking Oil 90,654 105,376 114,469 84,991 86,387 79,222 Sales Volume (MT) Q12007 Q12006 Q2 2007 Q2 2006 Q3 2007 Q3 2006 YTD YTD FY2007 FY2006 Sep 07 Sep 06 177,655 142,531 132,926 Margarine 50,456 54,130 55,865 37,945 40,094 36,968 Q12007 Q12006 Q2 20

  13. Slide 13: Commodity Sales

    86,554 Commodity Sales 74,514 62,735 37,714 CNO/RBDCNO 25,272 22,800 19,441 18,022 14,000 Sales Volume (MT) Q12007 Q12006 Q2 2007 Q2 2006 Q3 2007 Q3 2006 YTD YTD FY2007 FY2006 Sep 07 Sep 06 42,055 38,906 31,728 RBDPO/RBDOL/CPO 20,826 13,525 10,595 11,534 7,484 6,669 Q12007 Q12006 Q2 2007 Q2 2006 Q3

  14. Slide 14: London Sumatra Acquisition

    London Sumatra Acquisition 1. Integrated Oil Palm Plantation Business Model 2. Strategy 3. Acquisition on PT PP London Sumatra Indonesia Tbk. a. Rationale b. Current Status c. Structure d. Funding 4. Combined Entity a. Area Statement b. Oil Palm Yield c. Location Map d. Production Capacity e. Peer C

  15. Slide 15: 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 15

  16. Slide 16: Strategy

    Strategy PLANTATION • Continue to expand new planting area to achieve 250,000 ha of planted area by 2015. • IndoAgri to plant 70,000 ha by end of 2009 COOKING OIL & FATS • Strengthen brands’ identity and brand loyalty by Advertising & Promotion programs, to build brand equity • Increased focus on Hi

  17. Slide 17: Acquisition on Lonsum - Rationale

    Acquisition on Lonsum - Rationale Expansion of core plantation business • Lonsum principal business of oil palm cultivation and milling is similar to IndoAgri’s core plantation business Increase in landbank and oil palm planted area • IndoAgri’s land bank area will increase from 224,083 ha to 390,49

  18. Slide 18: Acquisition on Lonsum - Current Status

    Acquisition on Lonsum - Current Status Date Events 23 Oct 07 Shareholders Approval Obtained 31 Oct 07 Completion of Proposed Acquisition 56.4% by PT SIMP 2 Nov 07 Completion of Proposed Acquisition 8% by IndoAgri Announce Tender Offer Plan for remaining 35.6% interests 5 Dec 07 Close of Tender Offer

  19. Slide 19: Shareholding Structure – Before Tender Offer

    Shareholding Structure – Before Tender Offer Mr Sariaatmadja ISHPL(1) Public 6.8% 68.9% 24.3% IndoAgri IndoAgri 100.0% IOFPL(2) 90.0% 8.0% SIMP(3) 56.4% Lonsum Note: (1) Indofood Singapore Holdings Pte. Ltd. (2) Indofood oil & Fats Pte. Ltd. 19 (3) PT Salim Ivomas Pratama

  20. Slide 20: Funding

    Funding Funding (Rupiah billion) Ownership of Lonsum 64.4% 100.0% IFAR shares 712 712 Internal resources (cash) 981 981 Borrowings for Proposed Acquisition 4,020 4,020 Funding for Proposed Acquisition 5,713 5,713 Internal resources (cash) - 207 Borrowings for Tender Offer - 1,693 Loan from PT ISM -

  21. Slide 21: Hectare Statement

    Hectare Statement Mature Immature Total Total Location (1) plantations plantations Planted Area Land Bank (hectares) (hectares) (hectares) (hectares) North Sumatra 34,968 3,157 38,125 42,454 Riau 54,430 2,371 56,801 60,755 South Sumatra 23,407 13,532 36,939 101,513 West Kalimantan 7,102 6,180 13,282

  22. Slide 22: Oil Palm Yield – FY2006

    Oil Palm Yield – FY2006 Mature Estates Description Unit Lonsum IndoAgri FFB Ton/hectare 23.5 24.4 CPO Ton/hectare 5.6 5.5 Palm Kernel Ton/hectare 1.4 1.2 CPO Extraction Rate % 23.8 22.7 22

  23. Slide 23: Location Map as of 30 Sep 2007

    Location Map as of 30 Sep 2007 (excl. plasma) Copra Mill 150,000 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 13,282 ha North Sumatra (12) East Kalimantan (14) Lonsum 38,125 ha IndoAgri 13,849 ha Lonsu

  24. Slide 24: Production Capacity as of 30 Sep 2007

    Production Capacity as of 30 Sep 2007 North South Annual processing Facilities Riau Sumatra Sumatra Java Kalimanta Sulawesi Total capacity (tonnes) n 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 -

  25. Slide 25: One of the largest plantation companies in Indonesia (hectares)

    One of the largest plantation companies in Indonesia Peer Comparison Indonesia - hectares 300,000 250,000 200,000 Total Planted Area Mature Oil Palm 150,000 100,000 50,000 - Bakrie IndoAgri Post IndoAgri Lonsum PT Smart Astra Agro Golden Agri Sumatera Acquisition Total Planted Area 42,681 86,833 84,

  26. Slide 26: One of the largest plantation companies in Indonesia (tonnes)

    One of the largest plantation companies in Indonesia Peer Comparison Indonesia - tonnes ('000) - FY2006 5,000 4,000 FFB production 3,000 CPO production 2,000 1,000 - Bakrie IndoAgri Post *) *) *) *) IndoAgri Lonsum PT Smart Astra Agro Golden Agri Sumatera *) Acquisition FFB production 428 1,324 1,45

  27. Slide 27: Synergies

    Synergies • 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 management -

  28. Slide 28: Thank You

    THANK YOU 28

Indofood Agri Resources — Q3 2007 Earnings Presentation on 6ix