Kencana Agri Limited. 1Q 2011 Performance Review

Transcription

1 Kencana Agri Limited 1Q 2011 Performance Review 1

2 Disclaimer This document has not been independently verified and has been prepared for informational purposes only. No representation or warranty express or imply is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. It is not the intention to provide, and you may not rely on this document as providing, a complete or comprehensive analysis of the company s financial or trading position or prospects. The information and opinions contained in these materials are provided as at the date of this presentation and are subject to change without notice. None of Kencana Agri Limited or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this document or its contents. 2

3 Group Overview 3

4 Overview of Our Group s Operation Plantation Processing Products Supporting Business Palm Oil Mills CPO Bulking Terminal Fresh Fruit Bunches (FFB) Total Land bank 185,888 ha Nucleus: 174,673 ha Plasma: 11,215 ha Total Planted Area 48,910 ha Nucleus: 37,695 ha Plasma: 11,215 ha Kernel Crushing Plants No. of Mills: 3 Total Production Capacity: 165 MT/hour Total Annual Processing Capacity : 940,500 MT Total Production Volume: 87,239 MT (FY2009) 94,154 MT (FY2010) 27,343 MT (1Q2011) Renewable Waste (Empty Fruit Bunches, Liquid Waste, Kernel Shells, Fibre) CPKO Total capacity: 19,500 MT Logistics No of Vessels : 3 Total Capacity: 7,600 MT Biomass Power Plant No. of Kernel Crushing Plants : 2 Total Production Capacity: 435 MT/day Total Annual Processing Capacity : 108,315 MT Total Production Volume: 20,258 MT (FY2009) 16,513 MT (FY2010) 4,014 MT (1Q2011) Palm Kernel Cake 1 st Plant (2005) Location: Bangka Capacity: 6.0 MW 2 nd Plant (2009) Location: Belitung Capacity: 7.5 MW 4

5 Where We Are Estate Location 5

6 Development of Oil Palm Plantations Planted Area : Nucleus + Plasma (Ha) 50,000 45,000 Phase 1 Phase 2 40,000 35,000 30,000 25,000 20,000 Plasma Nucleus 15,000 10,000 5, Q st Phase Oil Palm cultivation started in 1996 in Bangka island, Sumatra (1,215 ha). This was followed by the 2 nd planting in 1998 in South Kalimantan 2 nd Phase Started in 2004 in south and east Kalimantan with rapid planting programme * By 1Q2011: Approximately 48,910 ha of oil palm planted Year of Planting Plasma Nucleus 6

7 Operational Highlights 7

8 Significant Land Bank for Future Planting Total Land Bank 185,888 ha (including Plasma) 10% 10% Planted Area: 26% 6% 74% Immature Young Mature Prime Mature Unplanted Area Land Bank (ha) Planted Area (ha) Planted Area (%) Nucleus 174,673 37, Plasma 11,215 11, Total 185,888 48,

9 % of Nucleus Planted Potential Double-Digit FFB Production Growth AGE DISTRIBUTION OF OIL PALMS (NUCLEUS) 21% 18% 15% Over 75% Immature & Young Weighted Average Oil Palms Age = 5.4 Years 12% 9% 6% 3% 0% Age (Years) Potential For Strong Double-Digit Production Growth Over The Next 5 Years AGE PROFILE OF OIL PALMS Immature Young Mature Prime Mature Total Nucleus 16,372 ha (41%) 12,940 ha (36%) 8,383 ha (23%) 37,695 ha Plasma 3,037 ha (27%) 5,076 ha (45%) 3,102 ha (28%) 11,215 ha Total 19,409 ha (38%) 18,016 ha (38%) 11,485 ha (24%) 48,910 ha 9

10 Production Volume 1Q Q 2011 Change Fresh Fruit Bunch (MT) 89, , % - Nucleus 49,248 76, % - Plasma 15,740 29, % - External 24,411 34, % Crude Palm Oil (MT) 17,884 27, % Crude Palm Kernel Oil (MT) 5,266 4, % FFB Yield (MT/ha) Group Average % - Nucleus % - Plasma % CPO Extraction Rates % CPKO Extraction Rates % 10

11 Sales Volume and Revenue (CPO & CPKO) 1Q Q 2011 Change Sales Volume (MT) - CPO 23,774 39, % - CPKO 3,999 2, % Sales Revenue (USD 000) - CPO 17,156 38, % - CPKO 3,550 3, % Average Sales Price (USD) - CPO % - CPKO 890 1, % 11

12 Financial Highlights 12

13 Financial Performance USD 000 1Q Q 2011 Change Revenue 22,892 48, % Gross profit 5,347 11, % Operating profit 3,561 8, % Profit before tax 2,481 6, Net profit for the period 2,037 4, % EBITDA 4,537 9, % Gross margin (%) pp Net profit margin (%) pp EBITDA margin (%) pp 13

14 Balance Sheet USD 000 As at 31 Dec 2010 As at 31 Mar 2011 Change Current Assets 86,180 99, % Non-current Assets 301, , % Total Assets 387, , % Current Liabilities 39,260 52, % Non-current Liabilities 138, , % Total Liabilities 177, , % Shareholders Equity 210, , % Net Debt/Equity Ratio (%) pp Net Debt/Total Assets (%) pp Debt/EBITDA (x) EBITDA/Interest Expense (x)

15 Cash Flows USD 000 1Q Q 2011 Change Cash at beginning of period 4,692 24, % Net cash from operating activities Net cash used in investing activities Net cash from financing activities Net effect of exchange rate changes in consolidating entities Net (decrease)/increase in cash ,321 +1,857.0% (6,409) (12,168) -89.9% 3,552 3, % 30 (1,551) n/m (1,993) 5,664 n/m Cash at end of period 2,699 29,880 +1,007.1% n/m = not meaningful 15

16 Updates and Future Developments 16

17 Updates and Future Developments Updates: Planted area increased by 2,197 ha in 1Q 2011 Construction of 4th mill with 45MT/hour capacity in East Kalimantan in progress The J.V. project with Louis Dreyfus group is progressing well and will add value to the company and propel it to be a significant palm oil player in East Kalimantan. Port to be operational by end-2q Future Developments: Plans are on track to double total planted area by 2012 Add more vessels in 2011/2012 to handle greater trading volume with completion of new port 17

18 Thank You 18