Pt Dharma Satya Nusantara Tbk · IDX:DSNG
Pt Dharma Satya Nusantara Tbk — 9M 2016 Earnings Presentation
16 slides from Pt Dharma Satya Nusantara Tbk's earnings presentation, 2016
Slide 1: DSN Group 9-Month 2016 Results Update
DSN Group 9-Month 2016 Results Update DSN Group is a growing, and green, producer of palm oil and wood products sold into global markets. Our plantation operations are among the most productive in the sector. The DSN Group was established in 1980, originally operating in logging and wood products ma
Slide 2: Our plantations' five-year track record highlights strong growth and effective management
Our plantations five-year track record highlights strong growth and consistently effective and efficient management 2 PT Dharma Satya Nusantara Tbk (DSNG.JK)
Slide 3: Our estates are clustered across East, West and Central Kalimantan
Our estates are clustered across East, West and Central Kalimantan, with acquisitions AAN & MNS in the West DSN acquired two estates in 2015 - partially planted AAN and Nucleus (‘000 ha) greenfield MNS. In 2016, we also Total 163.6 took a strategic minority stake in Planted 69.4 REA Kaltim. Mature 5
Slide 4: Our planted area has grown by acquisition and planting since 2001
Our planted area has grown by acquisition and planting since 2001, resulting in a relatively young age profile =1,000ha Acquiring AAN in 2015 provided Our commitment to plasma holders nearly 1,900 ha of nucleus and 800 ha is a critical element in the success of plasma, of which 1,200 ha were of DSN’
Slide 5: Planting and age profile suggest average 10% annual FFB growth through 2018
Our planting and age profile to date suggests an average 10% annual growth in FFB production through 2018 =1,000ha Our planted areas mature by 2019. standard FFB yield as high as 26.5 Yield expansion of the Young tons/ha (Class II soil) in 2020, up Mature trees should offset the from a standard yiel
Slide 6: Our younger estates have achieved or exceeded standard yields for Class II soil
Our younger estates have achieved or exceeded the standard yields for Class II soil over a number of years The El Nino of 2015 continues to have a negative impact on productivity through 2016. While 2017 should show a modest recovery, normal estate yields likely won’t return until 2018. Our mature a
Slide 7: Adverse weather in 2015 reduced nucleus volumes in Q3 by 47%
The adverse weather in 2015 has resulted in nucleus volumes declining in Q3 by 47% from the previous year In Q3, DSN produced 184.6 thousand tons FFB from nucleus estates, with an additional 22.1 thousand tons from plasma. Nucleus FFB output declined by 47.1% from Q3 2015, with a nucleus yield of 3.
Slide 8: Our most developed cluster is nearly the size of Singapore
Our most developed cluster - with 5 estates, 5 CPO Mills and 56,000 ha - is nearly the size of Singapore 71% of our planted area is located FFB spoilage and lower FFA. in a contiguous block in East Each mill’s capacity can Kalimantan – roughly the size of accommodate peak output from a Singapore. 10
Slide 9: Lower FFB production and slight OER decline led to sharp drop in CPO output
Lower FFB production and a slight decline in OER led to a sharp drop in CPO output, with strong FFA performance CPO production contracted by 44.2% in Q3 2016, while the Oil Extraction Rate (OER) contracted slightly to 23.9% for the quarter. Palm Kernel production fell by 33.9% to 10,331 tons, with m
Slide 10: DSN's productivity is consistently ahead of peers
DSN’s productivity, at 6.2 tons of CPO per hectare in 2015, is consistently ahead of peers, whatever the age profile While FFB yields were stable in 2015 at 26.2 tons per hectare, Q3 2016 witnessed a decline of 52.1% year-on-year. This was largely driven by the extremely dry conditions in H2 of 2015
Slide 11: Expanding domestic refining capacity ensures robust demand for our CPO
Expanding domestic refining capacity, coupled with our high-quality product, ensures robust demand for our CPO In Q3 2016, we sold 65.7 thousand tons of CPO, at an average selling price of Rp7.68 million per ton. Pricing has continued to recover from 2015 lows, DSN Estates DSN Ports with the ASP in
Slide 12: Costs were lower during the year, with expanding margins in Q4
Costs were lower during the year, and the seasonality of fertilizer application led to expanding margins in Q4 Our total cash cost declined by Rp113 billion in 2015, on falling FFB purchases and Other expenses. We produced CPO at a cash cost of Rp4.16 million per ton, for a 10% improvement over 2014
Slide 13: DSN is also a leading wood products manufacturer
DSN is also a leading wood products manufacturer with reputable brand names & long-standing client relationships We are the 4th largest wood consolidating operations from products manufacturer in Surabaya and Gresik to a new Indonesia, producing panels, processing plant in Lumajang by engineered flo
Slide 14: 9-Month 2016 Financial Summary
9-Month 2016 Financial Summary * Restated **Total debt excludes debt backed by restricted cash Note: Annual Financial Statements are audited by Siddharta & Wijaja, Registered Public Accountants - a Member Firm of KPMG International. 14 PT Dharma Satya Nusantara Tbk (DSNG.JK)
Slide 15: 9-Month 2016 Operations Summary
9-Month 2016 Operations Summary 9M 2016 Results Update 15
Slide 16: Contact and disclaimer
For additional information, please refer to our website at: www.dsn.co.id If you have additional questions or requests, you may contact us at: investor.relations@dsngroup.co.id DISCLAIMER: This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future pe
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