23 slides from First Resources Ltd. (singapore)'s investor presentation, August 2015
Slide 1: First Resources Limited Investor Presentation
First Resources Limited Investor Presentation Aug 2015 Delivering Growth and Returns
Slide 2: Table of Contents
Table of Contents Group Overview 3 6M/2Q2015 Financial Performance 8 6M/2Q2015 Operational Performance 14 Group Updates 19 2
Slide 3: Group Overview
aie, Group Overview RESOURCES
Slide 4: A Fast-Growing Plantation Group…
A Fast-Growing Plantation Group… Profile Locations Plantations are located in the Riau, East Kalimantan and West Kalimantan Established in 1992; listed on provinces of Indonesia Singapore Exchange in Dec 2007 Market Capitalization of ~ S$2.4 billion as at end Aug 2015 Assets 198,694 ha of plan
Slide 5: With a Strong Growth Profile
With a Strong Growth Profile Strong growth expected from existing plantation assets due to young age profile Young Plantation Profile Expected Growth from Existing Asset Base CPO Production (‘000 tonnes) Estimated production potential based on current planted hectarage Data as at 30 June 2015 Prime
Slide 6: Growth Strategy: Building on our Core Expertise
Growth Strategy: Building on our Core Expertise Develop and maintain high-quality plantation assets, and ensure Upstream Agri- optimal milling capacity in line with FFB production growth Business Focus To achieve sustainable production growth Maintain our low-cost structure through best-in-cla
Slide 7: Products
A Leading Plantation Group with Integrated Operations Throughout the Value Chain Plantations Milling Processing Activity Fresh Fruit Bunches Crude Palm Oil RBDPO Crude Products Palm Kernel PFAD Glycerine RBD Olein PKE RBD Stearin PKO Biodiesel 198,694 ha of plantations 13 C
Slide 8: 6M/2Q2015 Financial Performance
6M/2Q2015 Financial Performance
Slide 9: Income Statement Highlights
Income Statement Highlights US$’ million 6M2015 6M2014 Change 2Q2015 2Q2014 Change Sales 215.1 290.1 (25.9%) 118.8 112.2 5.9% Cost of sales (97.0) (154.4) (37.2%) (58.8) (51.2) 14.7% Gross profit 118.1 135.7 (13.0%) 60.0 60.9 (1.5%) EBITDA(1) 108.1 125.7 (14.0%) 54.7 58.3 (6.2%) Net profit attributa
Slide 10: Segmental Results
Segmental Results US$’ million 6M2015 6M2014 Change 2Q2015 2Q2014 Change Sales Plantations and Palm Oil Mills 226.3 244.5 (7.4%) 118.6 108.8 9.0% • Crude Palm Oil 193.9 215.0 (9.8%) 101.0 92.9 8.7% • Palm Kernel 28.7 27.3 5.2% 15.8 13.7 15.2% • Fresh Fruit Bunches 3.7 2.2 68.5% 1.8 2.2 (18.9%) Refin
Slide 11: Segmental Sales and EBITDA – 6M2015
Segmental Sales and EBITDA – 6M2015 Sales EBITDA The Group’s Plantations and Palm Oil Mills segment remains the main contributor to EBITDA. Note : Sales and EBITDA by business segment is stated before inter-segment elimination 11
Slide 12: Segmental Sales Volume
Segmental Sales Volume 6M2015 6M2014 Change 2Q2015 2Q2014 Change Sales Volume (tonnes) Plantations and Palm Oil Mills(1) • Crude Palm Oil 317,871 297,288 6.9% 170,304 132,417 28.6% • Palm Kernel 73,521 61,494 19.6% 39,929 27,663 44.3% Refinery and Processing 165,529 226,814 (27.0%) 123,681 98,444 25
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights US$’ million 30 June 2015 31 Dec 2014 Total Assets 1,913.1 1,997.9 Cash and bank balances 291.2 350.9 Total Liabilities 856.2 882.1 Borrowings and debt securities(1) 530.6 583.1 Total Equity 1,056.9 1,115.8 Net Debt 239.4 232.2 Net Debt(2)/Total Equity 0.23x 0.21x Net Debt(2
Slide 14: 6M/2Q2015 Operational Performance
6M/2Q2015 Operational Performance
Slide 15: Production Highlights
Production Highlights 6M2015 6M2014 Change 2Q2015 2Q2014 Change Production FFB harvested (tonnes) 1,212,833 1,026,287 18.2% 632,270 525,213 20.4% • Nucleus 1,090,631 923,110 18.1% 571,381 476,659 19.9% • Plasma 122,202 103,177 18.4% 60,889 48,554 25.4% FFB purchased (tonnes) 156,794 163,627 (4.2%) 8
Slide 16: Production Trends
Production Trends FFB Production CPO Production 16
Slide 17: Oil Palm Plantation Area
Oil Palm Plantation Area As at 30 June 2015 As at 30 June 2014 As at 31 Dec 2014 Area (ha) % of Total Area (ha) % of Total Area (ha) Planted Nucleus 169,752 85% 157,045 85% 165,936 - Mature 124,938 63% 114,143 62% 114,377 - Immature 44,814 22% 42,902 23% 51,559 Planted Plasma 28,942 15% 26,876 15% 2
Slide 18: Plantation Age Profile
Plantation Age Profile As at 30 June 2015 Age Area (ha) % of Total Old 22% 0-3 years (Immature) 53,954 27% Immature 27% 4-7 years (Young) 52,690 26% Prime 8-17 years (Prime) 48,966 25% 25% ≥ 18 years (Old) 43,084 22% Young 26% Total 198,694 100% Weighted average age of 9 years 18
Slide 19: Group Updates
fait Group Updates RESOURCES
Slide 20: Updates
Updates Outlook In the near term, palm oil prices will continue to be impacted by subdued demand as well as low prices of crude oil and other edible oils. Long-term outlook of the palm oil industry remains positive, supported by underlying demand growth from emerging markets and higher biodies
Slide 21: Sustainability Updates
Sustainability Updates On 1 July 2015 – Introduced the Sustainable Palm Oil Policy No development on High Carbon Stock forest and High Conservation Value areas No development on peat areas (regardless of depth) No exploitation of people and local communities Observe a strict zero-burning p
Slide 22: 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 23: Contact Information
Contact Information For 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 23