25 slides from First Resources Ltd. (singapore)'s earnings presentation, Feb 25, 2016
Slide 1: Full Year and Fourth Quarter 2015 Results Presentation
First Resources Limited Full Year and Fourth Quarter 2015 Results Presentation 25 February 2016 I Singapore Delivering Growth and Returns
Slide 2: Table of Contents
Table of Contents Executive Summary 3 Financial Performance 5 Operational Performance 14 Growth Strategy and Updates 19 2
Slide 3: Executive Summary – FY2015
Executive Summary – FY2015 Moderated Performance in a Challenging Operating Environment Weaker Financial Performance EBITDA came in at US$219.1m, a decrease of 26.9% Underlying net profit came in at US$109.3m, a decrease of 36.3% Decline mainly due to lower average selling prices and lower s
Slide 4: Executive Summary: Dividend
Executive Summary Dividend Proposing final dividend of 1.25 Singapore cents per share Interim dividend of 1.25 Singapore Cents per share paid in September 2015, bringing total FY2015 dividend to 2.50 Singapore Cents per share Dividend History FY2015 FY2014 FY2013 FY2012 FY2011 Interim Dividend P
Slide 5: Financial Performance
mea, Financial Performance RESOURCES
Slide 6: Income Statement Highlights
Income Statement Highlights US$’ million FY2015 FY2014 Change 4Q2015 4Q2014 Change Sales 453.7 615.5 (26.3%) 130.9 176.7 (25.9%) Cost of sales (202.4) (292.1) (30.7%) (68.1) (74.7) (8.8%) Gross profit 251.2 323.4 (22.3%) 62.7 102.0 (38.5%) (Losses)/gains arising from changes in (2.5) 1.9 n.m. (2.5)
Slide 7: Segmental Results
Segmental Results US$’ million FY2015 FY2014 Change 4Q2015 4Q2014 Change Sales Plantations and Palm Oil Mills 421.5 515.9 (18.3%) 101.9 130.8 (22.1%) • Crude Palm Oil 362.4 450.9 (19.6%) 87.3 114.1 (23.4%) • Palm Kernel 52.8 59.6 (11.4%) 13.1 15.2 (13.8%) • Fresh Fruit Bunches 6.4 5.4 17.5% 1.4 1.5
Slide 8: Segmental Sales and EBITDA – FY2015
Segmental Sales and EBITDA – FY2015 SALES EBITDA Refinery and Processing – 40.7% Refinery and Processing – 6.6% Plantations and Palm Oil Mills – 59.3% Plantations and Palm Oil Mills – 93.4% The Group’s Plantations and Palm Oil Mills segment remains the main contributor to EBITDA Note : Sales and E
Slide 9: Segmental Sales Volume
Segmental Sales Volume FY2015 FY2014 Change 4Q2015 4Q2014 Change Sales Volume (tonne) Plantations and Palm Oil Mills(1) • Crude Palm Oil 669,435 658,803 1.6% 188,286 176,847 6.5% • Palm Kernel 159,610 142,594 11.9% 48,032 44,180 8.7% Refinery and Processing(2) 509,229 564,435 (9.8%) 206,504 154,327
Slide 10: Review of Key Performance Metrics
Review of Key Performance Metrics Performance Metrics FY2015 FY2014 Change Unit Cash Cost of Production, Ex-Mill(1) US$204 US$228 - Per tonne of Nucleus CPO produced Unit EBITDA(2) US$371 US$539 - Per tonne of Nucleus CPO sold Unit EBITDA(2) - Per mature Nucleus Hectare US$1,612 US$2,330 (1) Cash co
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights US$’ million 31 Dec 2015 31 Dec 2014 Total Assets 1,926.9 1,997.9 Cash and bank balances 205.4 350.9 Total Liabilities 881.5 882.1 Borrowings and debt securities(1) 495.0 583.1 Total Equity 1,045.4 1,115.8 Net Debt(2) 289.6 232.2 Gross Debt(1)/Total Equity 0.47x 0.52x Net De
Slide 12: Agriculture – Bearer Plants
Amendments to FRS 16 and FRS 41 Agriculture – Bearer Plants Current requirements New requirements (effective 1 Jan 2016) All biological assets are measured at fair Bearer plants (i.e. palm trees) are to be value less costs to sell, with changes accounted for as property, plant & equipment recogn
Slide 13: Proforma Financial Statements on adoption of Amendments to FRS 16 and FRS 41
Proforma Financial Statements on adoption of Amendments to FRS 16 and FRS 41 Actual Proforma Proforma Balance Sheet (US$’ million) 31 Dec 2015 Impact(1) 31 Dec 2015 Total Assets 1,926.9 (370.0) 1,557.0 Biological assets 969.2 (370.0) 599.2 Total Liabilities 881.5 (89.3) 792.2 Deferred tax liabilitie
Slide 14: Operational Performance
aie Operational Performance RESOURCES
Slide 15: Production Highlights
Production Highlights FY2015 FY2014 Change 4Q2015 4Q2014 Change Production FFB harvested (tonnes) 2,804,606 2,469,884 13.6% 742,686 667,203 11.3% • Nucleus 2,530,357 2,212,006 14.4% 668,382 593,807 12.6% • Plasma 274,249 257,878 6.3% 74,304 73,396 1.2% FFB purchased (tonnes) 291,093 345,479 (15.7%)
Slide 16: Production Trends
Production Trends ‘000 tonnes FFB Production 900 771 800 695 668 700 616 591 594 571 600 519 448 446 477 500 395 400 300 200 49 62 64 54 49 81 73 61 61 78 74 100 42 0 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 FFB Nucleus FFB Plasma CPO Production ‘000 tonnes
Slide 17: Oil Palm Plantation Area
Oil Palm Plantation Area As at 31 Dec 2015 As at 31 Dec 2014 Area (ha) % of Total Area (ha) % of Total Planted Nucleus 178,338 86% 165,936 85% - Mature 128,042 62% 114,377 59% - Immature 50,296 24% 51,559 26% Planted Plasma 29,237 14% 28,631 15% - Mature 19,863 10% 17,843 9% - Immature 9,374 4% 10,7
Slide 18: Plantation Age Profile
Plantation Age Profile As at 31 Dec 2015 Age Age Profile Area (ha) % of Total Old 21% 0-3 years (Immature) 59,670 29% Immature 29% 4-7 years (Young) 55,844 27% Prime 8-17 years (Prime) 48,977 23% 23% ≥ 18 years (Old) 43,084 21% Young 27% Total 207,575 100% Weighted average age of ~ 9 years Note: Dat
Slide 19: Growth Strategy and Updates
aie Growth Strategy and Updates RESOURCES
Slide 20: 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-cla
Slide 21: 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 Crude Products Palm Kernel PFAD Glycerine RBD Olein PKE RBD Stearin PKO Biodiesel 207,575 ha of plantations 13 C
Slide 22: Capital Investments in 2016
Capital Investments in 2016 Plantation Development New planting of oil palms and rubber Maintenance of immature oil palm and rubber plantations Property, Equipment and Others Infrastructure for plantation management CPO mills Completion of the 14th mill in West Kalimantan by 3Q2016 C
Slide 23: Updates
Updates Outlook Palm oil prices have started to recover on supply disruption concerns due to prolonged dry weather in 2015 Fundamentals of the palm oil industry remains favourable, underpinned by supportive demand from the Indonesian biodiesel mandate and continued consumption growth from emer
Slide 24: 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 25: Contact Information
Contact Information If you need 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: www.first-resources.com 25