Kencana Agri Limitedkencana.listedcompany.com/newsroom/20090813_064926_F9M...Group’s financial...
Transcript of Kencana Agri Limitedkencana.listedcompany.com/newsroom/20090813_064926_F9M...Group’s financial...
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Kencana Agri Limited
Disclaimer
This document has not been independently verified and has been prepared for informational purposesonly. No representation or warranty express or implied is made as to, and no reliance should be placedon, the fairness, accuracy, completeness or correctness of the information or opinions containedherein.
It is not the intention to provide, and you may not rely on this document as providing, a complete orcomprehensive analysis of the company’s financial or trading position or prospects. The informationand opinions contained in these materials are provided as at the date of this presentation and aresubject to change without notice.
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subject to change without notice.
None of Kencana Agri Limited or any of its affiliates, advisers or representatives shall have any liabilitywhatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this documentor its contents.
Agenda
Company Overview
Operational Highlights
Financial Highlights
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Key Developments 1H2009
Company Overview
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PT. Wira Sawit Mandiri
PT. Indotrust
PT. Agro Sawitmas Lestari
PT. Sawit Kaltim LestariPT. Agri Eastborneo KencanaPT. Agrojaya Tirta Kencana
PT. Wira Mas Permai
Where We Are
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Samarinda
PT. Sawindo KencanaPT. Kencana Agro Jaya
PT. Listrindo Kencana
PT. Sawindo Cemerlang
PT. Belitung Energy
PT. Agro Inti Kencanamas
PT. Alamraya Kencana Mas
PT. Sawindo Cemerlang
1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
Plantation
Total Production Volume: • 64,557 MT (FY07)• 66,017 MT (FY08)• 40,198 MT (1H09)
Palm Oil Mills
No. of Mills: 2
Total Production Capacity: 120 MT/hour
Total Annual Processing Capacity :684,000 MT
Processing Products Supporting Business
Bulking Terminal
Logistics
Renewable Waste(Empty Fruit Bunches,
CPO
Fresh Fruit Bunches (FFB)
Total Land bank 188,784 ha (1)
Overview of Our Group’s Operations
Total capacity: 19,500 MT
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Kernel Crushing Plants
No. of Kernel Crushing Plants : 2
Total Production Capacity: 435 MT/day
Total Annual Processing Capacity :108,315 MT
Total Production Volume:• 28,485 MT (FY07)• 24,323 MT (FY08)• 9,259 MT (1H09)
Biomass Power Plant
1st Plant (2005)Location: BangkaCapacity: 6.0 MW
2nd Plant (2009)Location: BelitungCapacity: 7.5 MW
Note :
1. As at 30 June 2009
Palm Kernel Cake
(Empty Fruit Bunches, Liquid Waste, Kernel
Shells, Fibre)
CPKO
188,784 ha (1)
Nucleus: 176,412 ha, Plasma: 12,372 ha.Total Planted Area 34,308 ha(1)
Nucleus: 25,643 ha, Plasma: 8,665 ha.Mature Area16,790 ha (own)
1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
Total Capacity: 8,000 MT
Operational Highlights
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Significant Land Bank for Future Planting
82%
55%
42%
18%
Total Land Bank 188,784 ha (including Plasma)Total Land Bank 188,784 ha (including Plasma)
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(hectares) Land BankEstimated
Planted Area
Nucleus 176,412 25,643
Plasma 12,372 8,665
Total 188,784 34,308
1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
Available land Planted Mature Immature
Age Profile of Planted Areas
Age Profile (Nucleus) Age Profile (Plasma)
Immature8,853 Ha34%
Young9,378 Ha
37%
Prime7,412 Ha
29%
Immature3,135 Ha
36%
Young3,439 Ha
40%
Prime2,091 Ha
24%
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(hectares)
Immature(1-3 yrs)
Young (4-6 yrs)
Prime(7-18 yrs)
Total
Nucleus 8,853 9,378 7,412 25,643
Plasma 3,135 3,439 2,091 8,665
Total 11,988 12,817 9,503 34,308
% Nucleus 34% 37% 29% 100%
% Plasma 36% 40% 24% 100%
1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
We have planted approximately 1,227 new areas in 1H2009.
Production Volume
1H 2008 1H 2009 % Change 2Q 2008 2Q 2009 % Change
Fresh Fruit Bunch (Ton) 170,870 196,994 +15.3 84,011 116,029 +33.9
- Nucleus 91,435 123,110 +34.6 44,524 74,158 +66.6
- Plasma 18,097 30,921 +70.9 8,898 17,549 +97.2
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- External 61,338 42,963 -30.0 30,589 24,322 -20.5
Crude Palm Oil (MT) 36,858 40,198 +9.1 17,879 23,814 +33.2
Crude Palm Kernel Oil (MT) 13,761 9,259 -32.7 6,505 4,789 -26.4
1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
CPO and CPKO Production:
The increase in CPO production is mainly due to increase in our FFB production from both our nucleus and plasma plantations.
Decrease in CPKO production is due to sharp decrease in palm kernel purchases from third party.
Production Yields
1H 2008 1H 2009 % Change 2Q 2008 2Q 2009 % Change
FFB Yield (Ton/ha)
- Nucleus 8.03 8.22 +2.4 3.9 4.9 +25.6
- Plasma 4.29 6.10 +42.2 2.1 3.5 +66.7
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Oil Extraction Rates 21.6 20.4 -5.6 21.8% 20.5% -6.0
Kernel Extraction Rates 5.2 5.2 - 5.0% 5.2% 4.0
Kernel Oil Extraction Rates 40.6 39.9 -1.7 40.3% 40.4% 0.2
Production volume analysis
FFB yield increased due mainly to better production management in our estates and increased maturity profile of our plantation
Oil Extraction Rates (“OER”) have decreased slightly due to FFB produced from the newly matured area which has brought down the average OER for the Group.
1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
Sales Volume
Significant increase in overall sales volume attributed mainly to higher FFB production from our own and plasma plantations
40,000
60,000
80,000
100,000
120,000
140,000
92,149
69,093
27,120
29,318
14,618
12,978
(MT)
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1H 2008 1H 2009 % Change 2Q 2008 2Q 2009 % Change
Sales Volume (MT)
- CPO 39,440 69,093 +75.2 29,441 46,594 +58.3
- CPKO 14,612 12,978 -11.2 10,120 5,728 -43.4
1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
1H2008-
20,000
40,000
FY2007 FY2008 1H2008 1H2009
66,874
39,440
69,093
Revenue
Improved 1H2009 CPO revenue despite significant fall in CPO prices
1H2009 sales revenue from CPKO has decreased mainly due to reduction in third party kernel purchases.
1H2008 1H2009
CPO SalesUSD 38.3 m
83%
CPKO Sales USD 8.0 m
17%
CPO SalesUSD 34.1 m
67%
CPKO SalesUSD 16.8 m
33%
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1H 2008 1H 2009 % Change 2Q2008 2Q2009 % Change
Sales Revenue (USD’000)
- CPO 34,091 38,292 +12.3 26,052 27,055 +3.8
- CPKO 16,797 7,966 -52.6 11,806 3,564 -69.8
Sales Price (USD / MT)
- CPO 860 550 -37.4 890 580 -34.4
- CPKO 1,150 610 -47.4 1,170 620 -46.6
third party kernel purchases.
1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
Financial Highlights
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USD’000 1H 2008 1H 2009 % Change 2Q2008 2Q2009 % Change
Revenue 53,510 47,542 -11.2 39,523 31,450 -20.4
Gross profit 13,030 9,505 -27.1 9,178 5,877 -36.0
Operating profit 9,618 5,569 -42.1 6,906 4,214 -39.8
Profit before tax 7,714 4,175 -45.9 5,806 3,528 -39.2
Net profit 5,776 3,020 -47.7 4,473 2,516 -43.8
EBITDA
Operational Performance (excl FV Gain of BA)
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EBITDA 10,660 6,767 -36.5 7,429 4,829 -35.0
Gross margin (%) 24.4 20.0 -18.0 23.2 18.7 -19.5
Profit margin (%) 10.8 6.4 -40.7 11.3 8.0 -29.2
EBITDA margin (%) 19.9 14.2 -28.6 18.8 15.4 -18.1
1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
Balance Sheet
USD’000 1H 2008 1H 2009 % Change
Current Assets 36,723 35,770 -2.6
Non-current Assets 159,404 164,671 +3.3
Total Assets 196,127 200,441 +2.2
Current Liabilities 45,523 31,511 -30.8
Non-current Liabilities 59,179 49,758 -15.9
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Total Liabilities 104,702 81,269 -22.4
Shareholders’ Equity 91,413 119,172 +30.4
Net Debt/Equity Ratio (%) 48.5 30.5 -37.1
Net Debt/Total Assets (%) 22.6 18.1 -19.8
Debt/EBITDA (x) 1.9 6.0 +215.79
EBITDA/Interest Expense (x) 12.3 4.8 -61.0
1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
Cash Flow
USD’000 1H 2008 1H 2009 % Change 2Q2008 2Q2009 % Change
Net cash from/(used in) operating activities
(3,264) 5,858 n/m 1,821 2,674 +46.8
Net cash used in investing activities
(8,219) (18,009) +119.1 (5,141) (12,732) +147.7
Net cash from financing activities
11,098 1,955 -82.4 4,353 3,114 -28.5
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Net effect of exchange rate changes in consolidating entities
(1,617) 1,967 n/m (30) 2,870 n/m
Net (decrease)/increase in cash and cash equivalents
(2,002) (8,229) +311.1 1,003 (4,074) n/m
Cash and cash equivalents at beginning of period
3,999 10,909 +172.8 994 6,754 +579.5
Cash at end of period 1,997 2,680 +34.2 1,997 2,680 +34.2
1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
Financial Highlights
Decrease in revenue, profit and margins in 1H2009 as compared to those of 1H2008 was mainly due to the sharp drop in CPO and CPKO prices.
Lower cost of production was achieved due to higher FFB harvested and lower proportionate purchase of third party FFB.
Group’s financial position remained healthy with US$4.5 million in cash and net current assets of US$4.3 million.
Group net asset value increased to US$119million.
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1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
Group net asset value increased to US$119million.
The group generated net operating cash flow of US$5.9million in 1H2009.
Decrease in cash and cash equivalents of approximately US$8.2million was mainly due capital expenditure incurred on property, plant and equipments, biological assets and land rights
Key Developments 1H2009
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Key Developments 1H2009
Expansion of Land Bank
Increase nucleus land bank by 82% since 2008
Attaining 79,569 hectares of land bank in Sulawesi, Indonesia
Joint Venture with Louis Dreyfus Commodities Asia
Joint venture expected to propel Kencana’s expansion in East Kalimantan and Sulawesi and bring greater operational efficiencies
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Kalimantan and Sulawesi and bring greater operational efficiencies and potentially better margins
Construct and operate a palm oil trading port in Indonesia
Source and trade CPO and other palm products
New Debt Facilities
Secured additional Rp400 billion (approximately US$40 million) 13 years term-loan for new planting.
1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Key Developments and Industry Outlook 5. Growth Strategies
Thank You
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