23 slides from First Resources Ltd. (singapore)'s investor presentation, March 2017
Slide 1: First Resources Limited Investor Presentation March 2017
First Resources Limited Investor Presentation March 2017 Delivering Growth and Returns
Slide 2: Table of Contents
Table of Contents Group Overview 3 FY2016 Financial Performance 8 FY2016 Operational Performance 13 Growth Updates 18 -2-
Slide 3: Group Overview
Group Overview
Slide 4: A Fast-Growing Plantation Group…
A Fast-Growing Plantation Group… Locations Profile Plantations are located in the Riau, East Kalimantan and West Established in 1992; listed on Kalimantan provinces of Indonesia Singapore Exchange in Dec 2007 Market Capitalisation of ~S$3.1 billion as at 22 March 2017 Assets 208,691 ha of pl
Slide 5: With a Strong Growth Profile
With a Strong Growth Profile Strong growth expected from existing plantation assets due to young age profile Young Plantation Profile Expected Growth from Existing Asset Base CPO Production (‘000 tonnes) Estimated production potential based 1100 on current planted hectarage 1000 900 800 700 Data as
Slide 6: Growth Strategy: Building on our Core Expertise
Growth Strategy: Building on our Core Expertise Develop and maintain high-quality plantation assets, and ensure optimal Upstream Agri- milling capacity in line with FFB production growth Business Focus To achieve sustainable production growth Maintain our low-cost structure through best-in-cla
Slide 7: A Leading Plantation Group with Integrated Operations Throughout the Value Chain
A Leading Plantation Group with Integrated Operations Throughout the Value Chain Plantations Milling Processing Activity Fresh Fruit Bunches Crude Palm Oil RBDPO PKE Products Palm Kernel PFAD PKO RBD Olein Crude RBD Stearin Glycerine Biodiesel 208,691 ha of plantations 14 C
Slide 8: Financial Performance
Financial Performance
Slide 9: Income Statement Highlights
Income Statement Highlights US$’ million FY2016 FY2015(4) Change 4Q2016 4Q2015(4) Change Sales 575.2 453.7 26.8% 175.2 130.9 33.9% Cost of sales (308.0) (222.0) 38.8% (79.7) (73.4) 8.5% Gross profit 267.3 231.7 15.3% 95.5 57.4 66.3% Gains arising from changes in fair value 13.2 0.7 1,813.5% 13.2 0.7
Slide 10: Segmental Results
Segmental Results US$’ million FY2016 FY2015 Change 4Q2016 4Q2015 Change Sales Plantations and Palm Oil Mills 473.9 421.5 12.4% 164.0 101.9 61.0% • Crude Palm Oil 388.3 362.4 7.2% 133.4 87.3 52.8% • Palm Kernel 74.6 52.8 41.3% 27.3 13.1 108.2% • Fresh Fruit Bunches 11.0 6.4 73.2% 3.3 1.4 127.5% Refi
Slide 11: Segmental Sales Volume
Segmental Sales Volume FY2016 FY2015 Change 4Q2016 4Q2015 Change Sales Volume (tonnes) Plantations and Palm Oil Mills(1) • Crude Palm Oil 660,994 669,435 (1.3%) 212,074 188,286 12.6% • Palm Kernel 151,300 159,610 (5.2%) 49,569 48,032 3.2% Refinery and Processing(2) 792,415 509,229 55.6% 230,693 206,
Slide 12: Review of Key Performance Metrics
Review of Key Performance Metrics Performance Metrics FY2016 FY2015 Change Unit Cash Cost of Production, Ex-Mill(1) US$215 US$204 - Per tonne of Nucleus CPO produced Unit EBITDA(2) US$463 US$371 - Per tonne of Nucleus CPO sold Unit EBITDA(2) US$1,878 US$1,612 - Per mature Nucleus Hectare (1) Cash co
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights US$’ million 31 Dec 2016 31 Dec 2015(4) Total Assets 1,669.6 1,568.2 Cash and bank balances 258.2 205.4 Total Liabilities 773.4 793.8 Borrowings and debt securities(1) 447.9 495.0 Total Equity 926.2 774.4 Net Debt(2) 189.6 289.6 Gross Debt(1)/Total Equity 0.48x 0.64x Net Deb
Slide 14: Operational Performance
Operational Performance
Slide 15: Production Highlights
Production Highlights FY2016 FY2015 Change 4Q2016 4Q2015 Change Production FFB harvested (tonnes) 2,661,554 2,804,606 (5.1%) 863,143 742,686 16.2% • Nucleus 2,367,767 2,530,357 (6.4%) 766,298 668,382 14.6% • Plasma 293,787 274,249 7.1% 96,845 74,304 30.3% FFB purchased (tonnes) 253,148 291,093 (13.0
Slide 16: Production Trends
Production Trends FFB Production ‘000 tonnes 900 771 766 800 695 684 668 700 594 571 600 519 478 446 477 439 500 400 300 200 81 78 89 97 54 49 73 61 61 74 52 56 100 0 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 FFB Nucleus FFB Plasma CPO Production ‘000 tonnes
Slide 17: Oil Palm Plantation Area
Oil Palm Plantation Area As at 31 Dec 2016 As at 31 Dec 2015 Area (ha) % of Total Area (ha) % of Total Planted Nucleus 179,398 86% 178,338 86% - Mature 136,798 66% 128,042 62% - Immature 42,600 20% 50,296 24% Planted Plasma 29,293 14% 29,237 14% - Mature 21,799 10% 19,863 10% - Immature 7,494 4% 9,3
Slide 18: Plantation Age Profile
Plantation Age Profile Age As at 31 Dec 2016 Age Profile Area (ha) % of Total Old 24% 0-3 years (Immature) 50,094 24% Immature 24% 4-7 years (Young) 53,665 26% 8-17 years (Prime) 53,546 26% Prime 26% Young ≥ 18 years (Old) 51,386 24% 26% Total 208,691 100% Weighted average age of ~ 10 years - 18 -
Slide 19: Group Updates
Group Updates
Slide 20: Capital Investments in 2017
Capital Investments in 2017 Plantation Development New planting of oil palms Maintenance of immature oil palm and rubber plantations Property, Equipment and Others Infrastructure for plantation management CPO mills Completion of the 15th mill in East Kalimantan Commenced construction
Slide 21: Group Updates
Group Updates Outlook Although palm oil prices have moderated in recent weeks, continued low inventories in both producing and importing countries, will continue to provide support to prices. In the longer-term, the Indonesian biodiesel mandate and underlying demand growth from emerging market
Slide 22: Contact Information
Contact Information For further information, please contact: Investor Relations investor@first-resources.com First Resources Limited 8 Temasek Boulevard #36-02 Suntec Tower Three Singapore 038988 Tel: +65 6602 0200 Fax: +65 6333 6711 Website: http://www.first-resources.com - 22 -
Slide 23: Disclaimer
Disclaimer This presentation has been prepared by First Resources Limited (“Company”) for informational purposes, and may contain projections and forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These views are based on curr