Company Presentation – 4Q and FY 2012 Resultsindofoodagri.listedcompany.com/newsroom/20130227_063913...2013/02/27 · Company Presentation – 4Q and FY 2012 Results 27 Feb 2013

Company Presentation – 4Q and FY 2012 Results27 Feb 2013

Integrated Agribusiness with Leading Brands

1 1

Presentation Outline

11 Plantation Highlights Plantation Highlights

22 Financial Highlights Financial Highlights

33 Strategies and ExpansionStrategies and Expansion

44 AppendixAppendix

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Section 1

Plantation Highlights


3 3

Average age ≈ 12 years

Planted Area

Oil Palm Age Profile

(1) Exclude plasma area. As at 31 Dec 2012, the Group has ≈ 83,010 Ha of planted oil palm plasma area. Out of which, 2,619 Ha are new planting in FY12

(2) New plantings for oil palm at 13,383 Ha and replanted area at 941 Ha.(3) Cocoa and Tea

Young Trees

43%

Mature

76%

7-20 years,

34%

4-6 years,

19%

Immature,

24%> 20 years,

23%

In Ha 31 Dec 2012

31 Dec2011

Increase/(Decrease)

Planted Area 268,725 254,989 13,736

Planted Oil Palm (1) 230,919 216,837 14,082 Mature 176,105 158,163 17,942

Immature 54,814 58,674 (3,860)

Other Crops 37,806 38,152 (346)Rubber 21,802 22,185 (383)

Sugar cane 12,333 12,255 78

Others(3) 3,671 3,712 (41)

(2)


4 4

Oil Palm Plantation Highlights

(1) Exclude plasma area. As at 31 Dec 2012, the Group has ≈ 83,010 ha of planted oil palm plasma area.

FY12 FY11 Growth 4Q12 4Q11 Growth

Planted Area (1) (Ha) 230,919 216,837 6% 230,919 216,837 6%

Mature Area (1) (Ha) 176,105 158,163 11% 176,105 158,163 11%

FFB (‘000 MT) 4,107 3,797 8% 1,143 1,065 7%

- Nucleus production 2,973 2,797 6% 815 774 5%

- Purchase from external 1,134 1,000 13% 328 291 13%

FFB Yield – Nucleus (MT/Ha) 16.9 17.7 4.6 4.9

CPO Production (‘000 MT) 880 838 5% 241 232 4%

CPO Extraction Rate (%) 21.7% 22.1% 21.8% 21.7%

CPO Yield – Nucleus (MT/Ha) 3.7 3.9 1.0 1.1

PK Production (‘000 MT) 207 195 6% 57 57 2%

PK Extraction Rate (%) 5.1% 5.2% 5.2% 5.3%


5 5

Sugar Cane Plantation Highlights

FY12 FY11 Growth 4Q12 4Q11 Growth

Planted Area (Ha) 12,333 12,255 1% 12,333 12,255 1%

Sugar Cane Harvested (‘000 MT) (1) 588 420 40% - 174 (100%)

Sugar Production (‘000 MT) 60 20 205% 1 8 (88%)

Notes:(1) Harvested cane were relating to Komering sugar cane plantation


6 6

Oil Palm Plantation Production Trend

YOY Growth

FFB - Nucleus

4Q : 5%

FY : 6%

FFB - External

4Q : 13%

FY : 13%

Total CPO

4Q : 4%

FY : 5%

Total CPO

154169

201216

176205

225 232

190210

239 241

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

'000 MT

FFB

522591

723

589

675

759

630703

825 815728

774

157 157 188238

203 238268

291255 257

294328

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

'000 MT

FFB - Nucleus FFB - External

7

Section 2

Financial Highlights


8 8

Results Summary

* EBITDA excluding biological asset gains/(losses) andforex gains/(losses)

Financial Highlights

� A challenging year with lower commodity prices, the Group achieved positive growth with sales up 10% in FY12 on higher CPO sales volume and edible oil products to external parties as well as contribution from its sugar operation 4Q12 revenue up 4% yoy on mainly from sugar operation and higher sales of edible oil products, but this was offset by lower sales volume of palm products and lower ASP of plantation crops.

� In line with lower ASP and increased in production cost, gross profit declined 10% in FY12, but this was partly negated by higher profit contribution from EOF division and sugar operations. With the effects of lower volume of palm products, lower ASP of plantation crops and higher production cost, 4Q12 gross profit down 20% yoy

� Attributable profit down 30% on lower gross profit, higher operating expenses, lower forex gains and biological asset gains, as well as share of loss in an associated company. This gap was partly narrowed by certain one-off expenses incurred in 2011. Adjusted 4Q12 attributable profit was likewise lower, declining 49% yoy on lower gross profit, higher operating expenses and lower financial income

� Liquidity stayed strong with a cash level of Rp5.1 trillion and a low net gearing ratio of 0.07x

Operational Highlights

� Achieved positive production growth with FFB nucleus and CPO in FY12 growing 6% and 5% yoy to 2,973,000 tonnes and 880,000 tonnes

� Higher contribution from the sugar operations following the commencement of our first full sugarcane crushing season in 2012

� Edible oil business achieved a 5% yoy volume growth in FY12, supported by the expanded refining capacity from our new Jakarta refinery

Revenue

12,60513,845

3,187 3,324

FY11 FY12 4Q11 4Q12

Rp bn+10%

+4%

EBITDA*

3,794

3,223

929622

FY11 FY12 4Q11 4Q12

Rp bn-15%

-33%


9 9

Sales Volume

In '000 MT FY12 FY11 Growth 4Q12 4Q11 Growth

Plantation

CPO 829 829 (0%) 209 244 (14%)

Palm Kernel 202 193 5% 53 59 (10%)

Sugar 62 29 114% 24 10 141%

Rubber 16.6 17.1 (3%) 4.6 3.5 31%

Edible Oils & Fats

Cooking Oil, Margarine and Coconut Oil

808 772 5% 189 187 1%

Notes:(1) Lower sales volume of CPO and PK in 4Q12, leading to higher closing stocks as of December 2012


10 10

CPO, PK and Edible Oils & FatsSales Volume Trend

YOY Growth

CPO sales volume

4Q : (14%)

FY : (0%)

PK sales volume

4Q : (10%)

FY : 5%

Edible Oils & Fats

4Q : 1%

FY : 5%

Edible Oils & Fats Sales Volume

164154

179 186 180202 203

187206

217196 189

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

'000 MT

CPO and PK - Sales Volume

155171

182 187 194204

182

220 217 209

45 53

220

244

35 40 46 5240 44 50

59 49 56

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

'000 MT

CPO sales volume PK sales volume


11 11

CPO, PK and RubberAverage Selling Price (ASP) Trend

YOY Growth

CPO ASP

4Q : (10%)

FY : (3%)

PK ASP

4Q : (11%)

FY : (24%)

Rubber ASP

4Q : (30%)

FY : (27%)

Rubber ASP

24,94327,773 26,382

29,172

41,83938,769

36,417 36,897

32,784

28,64926,625 25,755

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

Rp / kg

CPO and PK - ASP

6,597 6,796 6,807

8,2867,697 7,404 7,484

8,0897,459

6,227

7,873

6,944

3,1403,725

3,991

5,107

6,838

5,936

3,933

3,269

4,158 4,1603,534

2,917

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

Rp / kg

CPO ASP PK ASP


12 12

Financial Summary

* EBITDA excluding biological asset gains/(losses) and forex gains/(losses)** Operating profit excluding biological asset gains/(losses)

In Rp Bn FY12 FY11YoY

Growth4Q12 4Q11

YoY Growth

Sales 13,845 12,605 10% 3,324 3,187 4%

EBITDA* 3,223 3,794 (15%) 622 929 (33%)EBITDA % 23% 30% 19% 29%

Operating profit** 2,653 3,353 (21%) 480 800 (40%)Operating profit % 19% 27% 14% 25%

Gains arising from changes in FV of biological assets

56 425 (87%) 56 425 (87%)

Net profit 1,819 2,641 (31%) 295 867 (66%)Net profit % 13% 21% 9% 27%

Attributable profit 1,049 1,490 (30%) 161 455 (65%)Attributable profit % 8% 12% 5% 14%

Attributable profit exclude biological assets gain

1,051 1,356 (22%) 163 322 (49%)

Attributable profit exclude biological assets gain %

8% 11% 5% 10%

EPS (fully diluted) - Rp 730 1,031 (29%) 112 315 (64%)


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Segmental Results

(1) Net effects arising from elimination of unrealised profit of inter-division inventories, SFRS adjustment and regional office costs

SALES EBITDA EBITDA%

In Rp Bn FY12 FY11 FY12 FY11 FY12 FY11

Plantations 8,388 8,482 2,600 3,572 31% 42%

Edible Oil & Fats 9,561 9,070 515 256 5% 3%

Elimination & Adjustments

(4,105) (4,946) 109 (35) n/m n/m

Sub-total 13,845 12,605 3,223 3,794 23% 30%

Net Forex Gain - - 19 46 - -

Total 13,845 12,605 3,242 3,840 23% 30%

(1) (1)


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By Geographical Location

External Revenue Breakdown

FY12 FY11

Asia, 8%

Europe, 7%

America, 1%

Africa, Middle

East &

Oceania, 2%

Indonesia,

82%

Asia, 7%

Europe, 5%

America, 5%

Africa, Middle

East &

Oceania, 2%

Indonesia,

81%


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Financial Position

*Total equity includes shareholders funds and minority interests.

�Strong liquidity with cash levels of Rp5.1 trillion and a low net gearing ratio of 0.07x

In Rp Bn 31-Dec-12 31-Dec-11

TOTAL ASSETS 34,811 33,207

Cash 5,082 6,535

TOTAL LIABILITIES 11,983 11,766

Interest Bearing Debt 6,780 7,260

TOTAL EQUITY* 22,829 21,441

Net Debt / EBITDA Ratio (Annualised) 0.5x 0.2x

Net Debt / Total Equity Ratio 0.07x 0.03x

Net Assets Value per Share (in Rupiah) 9,619 8,909

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Section 3

Strategies and Expansion


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Strategies and Expansion

Completed in 2012

• Added bottling and margarine plant in Tanjung Priok Refinery in Q1 2012

• Completed 40 MT FFB per hour oil palm mill in Kalimantan in Q2 2012

• Completed the expansion of sugar mill and refinery in Central Java from 3,000 TCD to 4,000 TCD in Q2 2012, increasing the cane crushing capacity to 720,000 MT per year

• Added 4 units of tugboats and barges for CPO transportation to our refinery in Q2 2012

• New planting for oil palm of 16,002 Ha (nucleus 13,383 Ha and plasma 2,619 Ha)

Strategic and Expansion in 2013

• Focus expansion on new plantings of oil palm and sugar plantations

• Expand CPO production capacity and enhance supply chain

• Constructing 4 oil palm mills, of which 2 mills are expected to be completed in 2013 –one in South Sumatra and one in Kalimantan. In addition, expansion of 2 existing mills in 2013.

• New bulking station in East Kalimantan with storage capacity of 5,000 tonnes

• Increase the utilization of internal tugboats and barges for CPO transportation to refineries

• Intensifying the promotion of branded products to both modern trade and traditional market with new packaging and brand positioning

• Completing roll-out of SAP ERP system to the whole group


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Overseas Expansion

�On 26th January announced proposed 50% acquisition in CMAA located in Minas Gerais, Brazil.

�Rationale:

• Expansion of geographical presence into the sugar, ethanol and co-generation industry inBrazil

• Superior technical know-how and best practices from Brazil that can be transferred back toIndoAgri’s Indonesia sugar operations

• Earnings accretive investment with a strong local partner in an expanding business

�Key Highlights:

• 1 sugar cane factory with a total cane crushing capacity of 3.0m MT p.a.; expanding to3.8m MT p.a. by 2014/15; supplemented by ethanol and co-generation plants.

• Has ~34,000 ha planted of sugar cane and targeted to have ~45,000 ha in the next 3 years,around 50% will be from 3rd parties

• Low land competition, favourable logistics and infrastructure (near major roads, railwaysand future ethanol pipeline)

• Proximity to main consumer markets and suppliers• Expected to be earnings accretive in 2014/2015

�Expect closing in Q2 2013

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Section 4

Appendix


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DistributionSeed breeding

� Advanced agriculture research centre

� Advanced agriculture research centre

� Nucleus planted oil palm of 230,919 ha*

� Diversified across palm oil, rubber, and sugar

� Nucleus planted oil palm of 230,919 ha*

� Diversified across palm oil, rubber, and sugar

� Leading cooking oil and margarine brands

� Leading cooking oil and margarine brands

Diversified and Integrated Agribusiness Group with Leading Brands

Upstream Downstream

R&D Plantations MillsEdible oils

and fats Finished products

Capturing value across the entire supply chain

* As of 31 Dec 2012


21 21

Corporate Structure

* Based on total number issued shares, excluding 13,500,000 shares held in treasury by the company.

83.8%

68.95%

72.00%

59.5%

6.7%

40.5%

Indofood Singapore Holdings Pte Ltd

Minority Interest

29.0% *

Public

1.3% 20.0%

69.6% *

72.0%

Public

Public

1.4%


22 22

Town/City

Oil Palm

Sugar Cane

Rubber

Sugar Mill

Copra Mill

Refinery

Tea

Cocoa

Supply Chain

North Sumatra

Riau

South Sumatra

Kalimantan

Strategically Located OperationsSpanning the Entire Supply Chain

Facilities Units Annual capacity (tonnes)

Palm oil mill 21 4,860,000 FFB

Crumb rubber facility 4 42,720 Dry rubber

Sheet rubber facility 3 11,100 Dry rubber

Facilities Units Annual capacity (tonnes)

Sugar mill & refinery 2 2,160,000 Sugar cane

Refinery 5 1,425,000 CPO


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This presentation was prepared solely and exclusively for t he parties presently being invited for the purpose ofdiscussion. Neither this presentation nor any of its conten t may be reproduced, disclosed or used without the priorwritten consent of Indofood Agri Resources Ltd.

This presentation may contain statements that convey futur e oriented expectations which represent the Company’spresent views on the probable future events and financial pl ans. Such views are presented on the basis of currentassumptions, are exposed to various risks, and are subject t o considerable changes at any time. Presentedassumptions are presumed correct at the, and based on the dat a available on the, date at which this presentation isassembled. The Company warrants no assurance that such outl ook will, in part or as a whole, eventually bematerialized. Actual results may diverge significantly fro m those projected.

© Indofood Agri Resources Ltd. All rights reserved.

Indofood Agri Resources Ltd.8 Eu Tong Sen Street#16-96/97 The Central

Singapore 059818Tel: +65 6557 2389

Fax: +65 6557 2387

www.indofoodagri.com

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Company Presentation – 4Q and FY 2012 Resultsindofoodagri.listedcompany.com/newsroom/20130227_063913...2013/02/27 · Company Presentation – 4Q and FY 2012 Results 27 Feb 2013