Pt Sawit Sumbermas Sarana Tbk · IDX:SSMS
Pt Sawit Sumbermas Sarana Tbk — Debt Investor Presentation (January 2018)
38 slides from Pt Sawit Sumbermas Sarana Tbk's debt investor presentation, January 2018
Slide 1: Investor Update January 2018
“To Become A World-class Plantation Company” Investor Update January 2018
Slide 2: Disclaimer
DISCLAIMER NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR IN ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW. The information that follows is a presentation of certain information about PT Sawit Sumb
Slide 3: Table of Contents
Table of Contents 01 Introduction 02 Business Overview 03 Key Credit Highlights 04 Operational Analysis 05 Financial Analysis 06 Appendix 3
Slide 4: 01. Introduction
\VZ EV Sawit SZ Bir Karya Nyata untuk Negeri yy “4 ¢
Slide 5: Sawit Sumbermas Sarana – Fast Growing Palm Oil Plantation Company in Indonesia
Sawit Sumbermas Sarana – Fast Growing Palm Oil Plantation Company in Indonesia COMPANY OVERVIEW SHAREHOLDING STRUCTURE1 • Founded in 1995, SSMS is a fast growing Central Kalimantan- Citra Borneo Group (68.88%) based palm oil plantation company with young maturity profiles 58.48% 8.13% 2.27% 31.12% (
Slide 6: Key Company Milestones
Key Company Milestones 2017 1995 2010 2012 • Total planted area of 2014 2016 70,984Ha with mill PT Sawit Sumbermas Sarana Annual CPO Annual CPO Annual FFB processing Total planted capacity of was incorporated in Central production surpasses production surpasses surpasses 1,000,000MT area of 68,307Ha
Slide 7: 02. Business Overview
Sawit Sumbermas Sarana Karya Nyata untuk Negeri OAS & 02. Business Overview
Slide 8: Business Overview
Business Overview Sizable Landbank with Potential Upside from Unplanted Area Land Rights Secured for Large Portion of Landbank (1) Other Planted Area Others Unplanted 70,984 12,911 Area 16,040 Conservation • Most of the landbank have • Substantial room for already obtained location organic growth vi
Slide 9: Business Overview (Cont’d)
Business Overview (Cont’d) Supported with group livestock synergy To support various • Integration of cattle customers, both domestic support operations and and overseas government plan for beef • 70.0% of sales for consumption domestic usage; • Reduction of weeding, • Remaining 30.0% integrated wit
Slide 10: Our Commitment to Sustainability
Our Commitment to Sustainability Target 100% RSPO Certification by 2020 100% RSPO Roadmap Partnership Close with The Forest Engagement Trust with TFT(“TFT”) The Forest Trust (“TFT”) is a renowned group of social 2018 2019 2020 and environmental experts in commodity supply chains Initiation of TS
Slide 11: Support the Nation with Environmentally Friendly Actions
Support the Nation with Environmentally Friendly Actions… • Comply with certifications; • Study high conservation areas; • No development of peatlands; • Zero burning policy; • Community driven; • Partial self-generated electric power support; • Conservation areas cover 6.2% within the plantation ar
Slide 12: Consistently Support Harmonious Relationships with All Stakeholders
Consistently Support Harmonious Relationships with All Stakeholders Corporate Governance “We do care”: Care for the Company, People, Environment and for the Country, Indonesia Cultural, Social and Empowering Health Community Program Education Program Empowerment Accommodate Participate in Increase r
Slide 13: 03. Key Credit Highlights
\VZ EV Sawit Karya Nyata untuk Negeri 03. Key Credit Highlights
Slide 14: Summary Credit Highlight
Summary Credit Highlight Young Maturity Profile Providing Visibility for Future 1 Production Growth High Yielding and Efficient Plantation Operations Supporting 2 Low Cost Operations Favourable Location Enables Higher Efficiency and Stronger 3 Cost Competitive Position 4 Strong CPO Fundamentals and
Slide 15: Young Maturity Profile Providing Visibility for Future Production Growth
1 Young Maturity Profile Providing Visibility for Future Production Growth Young age profile will support a continued increased in production of FFB over the next several years with minimal increases in production costs or capital expenditures. Total Planted Area by Planted Year (Ha) Immature (1 – 3
Slide 16: High Yielding and Efficient Plantation Operations Supporting Low Cost Operations
2 High Yielding and Efficient Plantation Operations Supporting Low Cost Operations Plant Productivity Cash Cost Breakdown for 9M 2017 Higher FFB yield, OER and CPO yield compared to average among peers SSMS - Cash Cost Units 9M Sep 2017 FY16 Peers Comparison – FFB Yield (MT/Ha) Fertilizer and mainte
Slide 17: Favourable Location Enables Higher Efficiency and Stronger Cost Competitive Position
Favourable Location Enables Higher Efficiency and Stronger Cost Competitive 3 Position Transportation and infrastructure benefits All assets are concentrated in the same SMU area within a 60km radius Covered by a dense network of “all weather” roads built to ensure that every MPP part of the pla
Slide 18: Strong CPO Global Outlook and Fundamentals
4 Strong CPO Global Outlook and Fundamentals Significant room for further growth in key palm oil consuming Strong demand drivers for Global CPO consumption countries Edible Oil Consumption: Growing demand for food primarily in Asia especially China and Kg per Capita 2006 2016 India 67.1 64.4 Avera
Slide 19: Strong CPO Global Outlook and Fundamentals (Cont’d)
4 Strong CPO Global Outlook and Fundamentals (Cont’d) Palm oil still trades at a discount to other edible oils. Moreover, palm oil prices have been relatively stable over the last few years. US$ / MT 1,400 1,200 1,000 US$741 800 600 US$653 400 US$231 200 0 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 J
Slide 20: Indonesia Expected to Remain a Significant CPO Player
4 Indonesia Expected to Remain a Significant CPO Player Significant growth in Indonesia’s market share in world CPO production and exports Global Production of CPO, 2006 to 2016 (m tonnes) Global Exports of CPO, 2006-2016 (m tonnes) M tonnes of CPO M tonnes of CPO Indonesia Malaysia Rest of world In
Slide 21: Strong Operating Profile Leading to Resilient Financials
5 Strong Operating Profile Leading to Resilient Financials CPO Production Increased production as our plantations mature MT '000 and enter into their prime production age Slight decrease due to adverse weather conditions 296 321 290 262 Strategic location, logistical efficiencies and best practi
Slide 22: Well Experienced Management Team with Proven Track Record
6 Well Experienced Management Team with Proven Track Record Board of Commissioners Board of Directors Marzuki Usman Rimbun Situmorang Ramzi Sastra Nicholas Justin Whittle Independent Commissioner Commissioner Director Unaffiliated Director and CFO • Since August 2013 • Since August 2016 • Since Augu
Slide 23: 04. Operational Analysis
Sawit Sumbermas Sarana Karya Nyata untuk Negeri OAS & 04. Operational Analysis
Slide 24: High Yielding Plantation Despite Unfavourable Conditions In 2016
High Yielding Plantation Despite Unfavourable Conditions In 2016 FFB Crude Palm Oil MT MT 23.7% 25.0% 1,600,000 21.0 20.1 19.4 30.0 450,000 23.5% 23.4% 23.1% 24.0% 14.6 20.0 400,000 321,238 1,400,000 23.0% 1,200,000 1,019,156 1,094,463 1,074,050 10.0 350,000 296,329 289,653 938,025 262,356 22.0% 300
Slide 25: 05. Financial Performance
\VZ EV Sawit SZ Bir Karya Nyata untuk Negeri yy OAS & 05.. Financial Performance
Slide 26: Prudent Financial Policy
Prudent Financial Policy Prudent Financial Management Strong Risk Management Modest • Maintain debt to equity leverage of less Balance Investment • Investments are decided after careful than 1.0x review and the assessment of a Sheet • Maintain gross debt to EBITDA leverage Policy feasibility study o
Slide 27: Strong Financials and Margins
Strong Financials and Margins Revenue EBITDA and Margin USD mm USD mm / % 250 249 49.7% 50.3% 51.1% 46.9% 202 200 194 176 150 127 96 88 95 100 50 0 2014 2015 2016 LTM Sep '17 2014 2015 2016 LTM Sep '17 EBITDA EBITDA margin EBIT and Margin Net Income and Net Income Margin USD mm / % USD mm / % 250 45
Slide 28: Stable Credit Metrics and Reducing Capital Expenditure
Stable Credit Metrics and Reducing Capital Expenditure Total Debt / EBITDA (x) EBITDA / Interest (x) 8.0x 7.0x 7.0x 6.4x 6.2x 6.0x 5.8x 3.0x 2.7x 2.8x 2.5x 2.4x 5.0x 4.0x 2.0x 1.5x 1.4x 3.0x 2.0x 1.0x 1.0x 0.5x 0.0x 0.0x 2014 2015 2016 LTM Sep '17 2014 2015 2016 LTM Sep '17 Total Debt / Equity (x) C
Slide 29: Well Managed Debt Maturity Profile
Well Managed Debt Maturity Profile Overview of Debt Terms (as of 30 September 2017) Debt Maturity Profile (as of 30 September 2017) Issuer of Interest USD mm Type Maturity Currency Principal Facility Rate BNI SSMS SSMS 2024 IDR IDR1,025bn 9.75 (IDR) BNI SSMS SSMS 2025 IDR IDR265bn 9.75 (IDR) BNI SSM
Slide 30: 06. Appendix
\VZ EV Sawit Karya Nyata untuk Negeri “4 ¢
Slide 31: Other Company Information
Sawit Sumbermas Sarana Karya Nyata untuk Negeri OAS & Other Company Information
Slide 32: CBI Group Business
CBI Group Business Subsidiary CBI Group’s Business Description ownership PT Borneo Industri Nusantara (BIN) 95% Iron and Steel PT Citra Borneo Chemical (CBC) 75% Oleochemical PT Borneo Sawit Gemilang (BSG) 96% Landbank PT Borneo Industri Terpadu (BIT) 90% Iron and Steel PT Pelayaran Lingga Marintama
Slide 33: Management Organization
Management Organization General Meeting of Shareholders (GMS) Board of Commissioners Nomination & Audit Committee President Director Remuneration Committee Internal Audit Plantation Operational Finance Director Commercial Director Director Chief of HR & General Plantation Advisor Corporate Secretary
Slide 34: Well-Experienced and Professional Management
Well-Experienced and Professional Management Board of Commissioners Board of Directors Bungaran Saragih | President Vallauthan Subraminam | President Commissioner Director • Since August 2013 • Since August 2016 as President Director, since • 44 Years experience in oil palm industry 2007 in group •
Slide 35: Achievement and Certification
Achievement and Certification RSPO ISPO • Received RSPO certification for Sulung Mill (SSMS), Selangkun • Received ISPO certification for Kenambui, Sulung, Rangda, Mill (SSMS) and Suayap Mill (MMS) Kondang, Pulau, Selangkun, and Rungun Estates ISO 9001, ISO 14001 and OHSAS 18001 PROPER blue • The Ci
Slide 36: Land Rights Obtaining Sequence
Land Rights Obtaining Sequence 2 Land Acquisition Issuance of the Cadastral Map The land acquisition must be completed within the validity period of the location permit. Location 4 by the Land Issuance of the permit is valid for 3 years and can be extended for Office another year if the company alre
Slide 37: Support the Protection of Orangutans’ Habitat
Support the Protection of Orangutans’ Habitat • In order to protect the habitat of orangutans, PT Sawit Sumbermas Sarana Tbk, in cooperation with the Borneo Orangutan Survival Foundation (BOSF), BKSDA and Government of Central Kalimantan, established conservation of orangutans on the island of Nusa
Slide 38: Thank You
Thank You Visit our website at www.ssms.co.id Mailing Address: PT Sawit Sumbermas Sarana Tbk Head Office Representative Office Jl. H. Udan Said No.47 Equity Tower, Suite 43D Pangkalan Bun 74113 Jl. Jend Sudirman Kav.52-53 Kalimantan Tengah, Indonesia Jakarta 12190, Indonesia 38
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