22 slides from First Resources Ltd. (singapore)'s earnings presentation, Feb 27, 2017
Slide 1: First Resources Limited Full Year and Fourth Quarter 2016 Results Presentation
First Resources Limited Full Year and Fourth Quarter 2016 Results Presentation 27 February 2017 Delivering Growth and Returns
Slide 2: Table of Contents
Table of Contents Executive Summary 3 Financial Performance 5 Operational Performance 11 Growth Strategy and Updates 16 -2-
Slide 3: Executive Summary – FY2016
Executive Summary – FY2016 Reported a Satisfactory Set of Results Strong Financial Performance EBITDA came in at US$251.3 million, an increase of 14.7% Underlying net profit came in at US$115.5 million, an increase of 21.4% Increase mainly due to higher average selling prices Modest Operat
Slide 4: Executive Summary: Dividend
Executive Summary Dividend Proposing final dividend of 2.375 Singapore cents per share Interim dividend of 0.625 Singapore cents per share paid in September 2016, bringing total FY2016 dividend to 3.000 Singapore cents per share Dividend Payout FY2016 FY2015 FY2014 FY2013 FY2012 Interim Dividend
Slide 5: Financial Performance
Financial Performance
Slide 6: Income Statement Highlights
Income Statement Highlights US$’ 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 7: 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 8: 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 9: 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$527 US$371 - Per tonne of Nucleus CPO sold Unit EBITDA(2) US$1,878 US$1,612 - Per mature Nucleus Hectare (1) Cash co
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights US$’ 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 11: Operational Performance
Operational Performance
Slide 12: 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 13: 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 55 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 ‘000 tonnes CPO Production
Slide 14: 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 15: Plantation Age Profile
Plantation Age Profile As at 31 Dec 2016 Age 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 - 15 -
Slide 16: Growth Strategy and Updates
Growth Strategy and Updates
Slide 17: Growth Strategy: Building on our Core Expertise
Growth Strategy: Building on our Core Expertise Develop and maintain high-quality plantation assets and ensure Upstream Agri- optimal milling capacity in line with FFB production growth Business Focus To achieve sustainable production growth Maintain our low-cost structure through best-in-clas
Slide 18: A Leading Plantation Group with Integrated Operations
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 19: 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 20: Updates: Outlook
Updates Outlook Although palm oil prices have moderated in recent weeks, continued low inventories in both producing and importing countries should continue to provide some support to prices. In the longer-term, the Indonesian biodiesel mandate and underlying demand growth from emerging market
Slide 21: 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
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 -