24 slides from First Resources Ltd. (singapore)'s earnings presentation, Nov 10, 2008
Slide 1: First Resources Limited Performance Presentation Nine Months ended 30 Sept 2008
First Resources Limited Performance P f P Presentation t ti Nine Months ended 30 Sept 2008 (“9M2008”) 10 Nov 2008 Singapore
Slide 2: Table of Contents
Table of Contents Notes to Presentation 3 9M2008/ 3Q2008 Fi Financial i lPPerformance f 4 9M2008 Operational Performance 14 3Q2008 Developments 19 Outlook and Strategy 21 2
Slide 3: Notes on this Presentation
Notes on this Presentation We use Singapore Financial Reporting Standards for reporting Acquisitions in 2007 ¾ For 3Q2008 and 9M2008, income statements included the results of PT Meridan Sejatisurya Plantation (PT MSSP) which effectively became a 94%-owned subsidiary after acquisitions of additi
Slide 4: 9M2008/ 3Q2008 Financial Performance
9M2008/ 3Q2008 Financial Performance
Slide 5: Executive Summary – 9M2008
Executive Summary – 9M2008 Strong performance despite lower CPO prices in third quarter Revenue : Rp 2,090.4 bn. (US$ 222.9 mn.) 77% G Gross Profit P fit : Rp R 1,439.9 1 439 9 bn. b (US$ 153 153.5 5 mn.)) 140% EBITDA : Rp 1,284.9 bn. (US$ 137.0 mn.) 125% Net Profit* : Rp 920.2 bn. (US$ 98.1 mn.) 19
Slide 6: Income Statement Highlights – 3Q2008
Income Statement Highlights – 3Q2008 R ’ billion Rp’ billi 3Q2008 3Q2007 Ch Change Revenue 636.5 422.1 50.8% Gross Profit 430.0 242.5 77.3% Gains from Changes in Value of Biological Assets - - - EBITDA 403.3 221.0 82.5% Profit for the Period 212.8 140.5 51.5% Net Profit Attributable to Equity Holder
Slide 7: Income Statement Highlights – 9M2008
Income Statement Highlights – 9M2008 R ’ billion Rp’ billi 9M2008 9M2007 Ch Change Revenue 2,090.4 1,182.6 76.8% Gross Profit 1,439.9 599.6 140.2% Gains from Changes in Value of Biological Assets 299.0 204.6 46.1% EBITDA 1,284.9 571.4 124.8% Profit for the Period 964.4 477.3 102.1% Net Profit Attrib
Slide 8: Continued Strong Growth In EBITDA And Profit
Continued Strong Growth In EBITDA And Profit EBITDA Net Profit(1) 1,400 1,380 1,284.9 1,200 1,180 1,000 980 920.2 855.7 p Billion Rp Billion 800 780 Rp 571.4 600 580 392.2 431.3 400 380 311.1 222.8 227.3 243.9 200 180 90.8 -18.6 0 -20 2004 2005 2006 2007 9M2007 9M2008 2004 2005 2006 2007 9M2007 9M20
Slide 9: Sales Breakdown – 9M2008
Sales Breakdown – 9M2008 By Product By Domestic/Export Others Palm Kernel 0.1% 12.5% Export 41.5% Crude Palm Domestic Oil 58.5% 87.4% Rp’ million Rp’ million CPO 1,827,830 Export 867,652 PK 261,235 Domestic 1,222,731 Others 1,319 Total 2,090,383 Total 2,090,383 9
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights Low gearing, healthy cash balance, minimal short term liabilities R ’ billion Rp’ billi 30 S Septt 2008 31 D Dec 2007 Total Assets 7,310.7 6,246.7 Cash and cash equivalents 1,276.7 1,558.1 Total Liabilities 3,278.1 2,940.1 Interest Bearing Debts 1,918.7 1,970.4 Total Equity
Slide 11: Performance Review
Performance Review I Improved d top t and d bottom b tt lines li due d to: t ¾ increase in average selling prices ¾ increase in FFB, CPO and PK production volumes (organic growth) ¾ acquisition i iti off additional dditi l iinterests t t iin PT Meridan M id Sejatisurya S j ti Pl t ti and Plantatio
Slide 12: Cross Currency Swap
Cross Currency Swap B k Background d ¾ in Nov 07, Group issued a 5-year IDR500 bn with coupon of 11.5% ¾ we entered into a cross-currency swap arrangement with Citi concurrently ¾ swap effectively ff ti l converted t d IDR 500bn 500b bbond d with ith 11 11.5% 5% coupon iinto t synthetic th ti USD5
Slide 13: Cross Currency Swap
Cross Currency Swap Key takeaways G Group does d nott enter t into i t speculative l ti financial fi i l derivative d i ti instruments i t t ¾ swap was a hedge for Group’s IDR liabilities ¾ objective is match revenues (USD) with liabilities and avoid FX mismatch ¾ protects t t Group G against i t
Slide 14: 9M08 Operational Performance
9M08 Operational Performance
Slide 15: Operational Highlights – 9M2008
Operational Highlights – 9M2008 9M2008 9M2007 Ch Change Production FFB Total (ton) 1,027,612 916,838 12.1% FFB Nucleus 909,936 819,434 11.0% FFB Plasma 117,675 97,405 20.8% CPO (ton) 235,637 200,361 17.6% PK (ton) 55,558 45,476 22.2% Efficiency FFB Yield (ton/ha) 16.41 15.77 CPO Extraction Rate (%)
Slide 16: Continued Strong Operational Track Record
Continued Strong Operational Track Record FFB Production CPO Production ‘000 tons ‘000 tons 1,266.8 300 278.3 1,400 1 400 1 120 8 1,120.8 235 6 235.6 1,200 1,027.6 250 227.3 852.6 949.5 916.8 184.1 194.2 200.4 1,000 200 800 150 600 400 100 200 50 0 0 2004 2005 2006 2007 9M2007 9M2008 2004 2005 2006
Slide 17: Plantation Area Statistics
Plantation Area Statistics Additional new plantings of 6,559 hectares in 9M2008 D i ti Description 30 S Septt 2008 % off T t l Planted Total Pl t d Planted Nucleus Area (hectares) 82,190 88.5% Mature 54,915 59.1% Immature 27,275 29.4% Planted Plasma Area (hectares) 10 23 10,723 11 % 11.5% Mature 7,7
Slide 18: Plantation Maturity Profile
Plantation Maturity Profile A Age A Area (H (Ha)) % off T Total t l A M Age Make-Up k U 0-3 years (Immature) 30,297 32.6% Old 0.0% 4-7 years (Young) 9,583 10.3% Immature 32.6% 8-17 years (Prime) 53,033 57.1% Prime 18 years and above (Old) 0.0% 57.1% - Young Total 92,913 , 100.0% 00 0% 10 3% 10.3% Av
Slide 19: 3Q08 Company Developments
aie, 2Q08 Company Developments RESOURCES
Slide 20: Recent Business Developments
Recent Business Developments St ti seed Starting d garden d investment i t t ¾ secured 366 ha of land in Pekanbaru for seed garden development ¾ expected to be commercially ready in 7-10 years ¾ seeds d iintended t d d ffor own planting/replanting l ti / l ti use andd ffor sale l tto 3 3rd d parti
Slide 21: Outlook and Strategy
aie, Outlook and Strategy RESOURCES
Slide 22: Outlook and Strategy
Outlook and Strategy CPO prices i to t remain i constrained t i d ini short h t to t medium di term t ¾ expect weaker CPO prices in 4QFY2008 and 2009, compared to previous quarters ¾ potential downward revision of biological asset valuation at year-end from June 08 balance – this is non-cash and d
Slide 23: Disclaimer
Disclaimer The information Th i f ti contained t i d in i this thi document d t has h nott beenb i d independently d tl verified. ifi d No N representation t ti or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of t
Slide 24: Contact Us
Contact Us If you need d further f th information, i f ti please l contact: t t Serene Lim Investor Relations Manager, Singapore Email: serene.lim@first-resources.com / investor@first-resources.com First Resources Limited 8 Temasek Boulevard #36-02 Suntec Tower Three Singapore 038988 Tel: +65 6333 6