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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
2
Section 1
Plantation Highlights
Integrated Agribusiness with Leading Brands
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)
Integrated Agribusiness with Leading Brands
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%
Integrated Agribusiness with Leading Brands
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
Integrated Agribusiness with Leading Brands
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
Integrated Agribusiness with Leading Brands
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%
Integrated Agribusiness with Leading Brands
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
Integrated Agribusiness with Leading Brands
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
Integrated Agribusiness with Leading Brands
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
Integrated Agribusiness with Leading Brands
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%)
Integrated Agribusiness with Leading Brands
13 13
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)
Integrated Agribusiness with Leading Brands
14 14
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%
Integrated Agribusiness with Leading Brands
15 15
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
16
Section 3
Strategies and Expansion
Integrated Agribusiness with Leading Brands
17 17
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
Integrated Agribusiness with Leading Brands
18 18
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
19
Section 4
Appendix
Integrated Agribusiness with Leading Brands
20 20
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
Integrated Agribusiness with Leading Brands
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%
Integrated Agribusiness with Leading Brands
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
Integrated Agribusiness with Leading Brands
23 23
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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