Pt Sinar Mas Agro Resources & Technology Tbk · IDX:SMAR
Pt Sinar Mas Agro Resources & Technology Tbk — YTD Sep 2007 Earnings Presentation
28 slides from Pt Sinar Mas Agro Resources & Technology Tbk's earnings presentation, Nov 15, 2007
Slide 1: Interim Performance Presentation
Interim Performance Presentation YTD Sep 2007 : nine months period ended 30th September 2007 15th November 2007 0 0
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Golden Agri-Resources Ltd. (“GAR” or “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 b
Slide 3: Table of Contents
Table of Contents Section 1 Executive Summary 3 Section 2 Financial Performance 8 Section 3 Operational Performance 12 Section 4 Sales Highlights 18 Section 5 Industry Outlook and Growth Strategy 21 Section 6 Recent Developments 25 2 2
Slide 4: Executive Summary
eA) gar ZF gar and food Section 1 Executive Summary
Slide 5: Executive Summary
Executive Summary YTD Sep 2006 YTD Sep 2007 Sep 2007 vs. Sep 2006 Revenue :US$ 826 mn US$ 1,215 mn 47% Gross Margin : 25.3% 34.7% 37.2% EBITDA :US$ 171 mn US$ 364 mn 112% EBITDA Margin : 20.7% 29.9% 44.4% 36% Net Profit 1 :US$ 433 mn US$ 591 mn Note: 1. Profit attributable to the equity holders afte
Slide 6: Increasing CPO Price and Production Volume
Increasing CPO Price and Production Volume Recovery in production volume coinciding with a surge in CPO price Palm Products Production CPO Price Trend (FOB Belawan) (‘000 Ton) (US$/Ton) 180 $900 160 164 162 162 $800 153 153 140 144 141 139 $700 129 120 $600 100 $500 80 Jan-07 Feb-07 Mar-07 Apr-07 Ma
Slide 7: Strong Growth in Revenue and Income
Strong Growth in Revenue and Income Strong top and bottom line resulting from higher CPO price and improving production Strong revenue growth Increasing gross profit (US$ million) (US$ million) 1,400 Growth: 47% (Sep’06-Sep’07) 500 CAGR: 22% Growth: 101% 1,200 (2004-2006) (Sep’06-Sep’07) 400 CAGR: 1
Slide 8: Strong Growth in Revenue and Income
Strong Growth in Revenue and Income Strong top and bottom line resulting from higher CPO price and improving production Strong EBITDA Improving net income1 (US$ million) (US$ million) Growth: 36% 400 Growth: 112% (Sep’06 – Sep’07) (Sep’06-Sep’07) 600 350 591 CAGR: 9% 500 300 CAGR: 169% (2004-2006) (
Slide 9: Financial Performance
Section 2 Financial Performance
Slide 10: YTD Sep 2007 Financial Results
YTD Sep 2007 Financial Results Strong CPO price is reflected in our financial results YTD Sep YTD Sep % (in US$ mn) 2006 1 2007 increase Revenue 826.2 1,215.5 47.1% Gross profit 209.3 421.5 101.4% Gross profit margin 25.3% 34.7% 37.2% Net gain from biological assets 578.3 523.6 (9.5%) Operating inco
Slide 11: YTD Sep 2007 Segmental Results
YTD Sep 2007 Segmental Results Strong results from Indonesia Operations (in US$ mn) Indonesia Operations China Operations YTD Sep YTD Sep % increase YTD Sep YTD Sep % increase/ 20061 2007 2006 2007 (decrease) Revenue 579.1 909.5 57.1% 247.1 305.9 23.8% Gross Profit 189.7 398.3 110.0% 19.6 23.2 18.6%
Slide 12: Financial Position
Financial Position Continuous growth in total assets with a low gearing ratio 31 Dec 30 Sep % increase/ (in US$ mn) 2006 1 2007 (decrease) Total Assets 2,985.4 4,167.8 39.6% Cash and Short-Term Investments 134.0 180.9 35.0% Total Liabilities 1,064.1 1,301.2 22.3% Interest Bearing Debts 477.4 429.2 (
Slide 13: Operational Performance
Section 3 Operational Performance
Slide 14: Plantations Area
Plantations Area GAR is one the largest oil palm plantations in the world with integrated operations (in ha) 31 Dec 30 Sep 30 Sep 30 Sep ’06 – 30 Sep ’07 2006 2006 2007 % increase Planted Area 306,850 297,380 352,029 18.4% Nucleus 226,184 216,777 270,306 24.6% Plasma 80,666 80,603 81,723 1.4% Mature
Slide 15: Plantations Age Profile
Plantations Age Profile The age profile of trees favorably positions GAR to capture the surge in CPO prices (in ha) Immature Young Prime 1 Prime 2 Old Total 0-3 years 4-6 years 7-12 years 13-18 years >18 years Nucleus 56,509 6,907 97,061 74,010 35,820 270,306 20.9% 2.6% 35.9% 27.4% 13.2% 100.0% Plas
Slide 16: Production Performance
Production Performance GAR is one of the largest and most efficient producers of palm oil based products in the world FFB Production Palm Products Production (‘000 Tons) (‘000 Tons) (Ton/ha) 7,000 22.69 2,000 25 6,000 20.60 21.77 1,750 337 17.65 5,000 1,595 1,624 315 20 1,463 1,500 299 16.30 4,000 1
Slide 17: Historical FFB Production Trend
Historical FFB Production Trend Drought Recovery (‘000 Tons) Normal condition condition Period 1800 1,699 1,725 1,624 1,554 1,567 1600 1,518 1,462 1,392 1,348 1,380 1400 Sep 1,225 584 1200 1000 800 Aug 570 600 400 Jul 200 570 0 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007
Slide 18: YTD Sep 2007 Production Highlights
YTD Sep 2007 Production Highlights YTD Sep YTD Sep % 2006 2007 decrease FFB Production (tons) 4,652,882 4,623,443 (0.6%) FFB Yield (ton/ha) 17.16 15.80 (7.9%) Extraction Rate (%) OER 23.22% 23.05% KER 5.00% 5.11% Palm Products Production (tons) 1,466,756 1,346,257 (8.2%) CPO 1,206,924 1,102,016 (8.7
Slide 19: Sales Highlights
eA) gar ZF gar and food Section 4 Sales Highlights
Slide 20: Revenue Contribution
Revenue Contribution Revenue contribution Revenue contribution ~ By Products China Local, PK Others 25% Soybean meal 2% 1% 9% Indo Export, Soybean oil 39% CPO 8% 41% Branded products 10% Unbranded palm products Indo Local, 29% 36% Indonesia Operations ~ By Products China Operations ~ By Products Bra
Slide 21: Sales Volume
Sales Volume YTD Sep YTD Sep % 2006 2007 increase/ (decrease) Indonesia Operations CPO 731,000 826,000 13.0% PK 99,000 85,000 (14.1%) Refined Products 693,000 656,000 (5.3%) Branded Cooking Oil 63,000 73,000 15.9% Margarine 36,000 47,000 30.6% Unbranded 594,000 536,000 (9.8%) China Operations Brande
Slide 22: Industry Outlook and Growth Strategy
Section 5 Industry Outlook and Growth Strategy
Slide 23: Industry Outlook
Industry Outlook 1. Since 2006, Indonesia has been the largest producer of palm oil, which is currently the largest contributor to the world’s vegetable oils Indonesia will continue to play a major role in world production of vegetable oil, supported by the characteristics of palm oil, i.e. high yie
Slide 24: Growth Strategy
Growth Strategy Commitment to sound business strategies and continuous operational excellence will enable GAR to sustain growth and profitability Continued Growth and Profitability Food Industrial Bio-Fuel Strong Plantation Foundation Largest in the world with 352,000 ha planted Future expansion of
Slide 25: YTD Sep 2007 Growth Achievements and Targets
YTD Sep 2007 Growth Achievements and Targets Plantation Original target additional planted area of 40,000 ha for FY 2007 We already achieved additional planted area of 45,000 ha during YTD Sep 2007 - 17,000 ha of new planting - 28,000 ha of acquired plantation For Q4 2007, we expect to add 5,0
Slide 26: Recent Developments
Section 6 Recent Developments
Slide 27: Recent Developments
Recent Developments July – November 2007: Acquisition of SMART’s shares GAR through PT Purimas Sasmita has increased the ownership in SMART from 83.9% to 92.7% Total cost approximately US$ 124 million This acquisition will give immediate earnings benefit in the light of favourable palm oil ind
Slide 28: Contact Us
Contact Us If you need further information, please contact: Golden Agri-Resources Ltd c/o 3 Shenton Way #17-03 Shenton House Singapore 068805 Telephone : +65 62207720 Facsimile : +65 62207020 Contact Person : Rafael B. Concepcion, Jr. (rafaelc@goldenagri.com.sg) Suwandy Chen (swd@goldenagri.com.sg)
PT Sinar Mas Agro Resources & Technology — YTD Sep 2007 Earnings Presentation on 6ix