First Resources Limited First Resources Limited Annual General - - PowerPoint PPT Presentation

First Resources Limited First Resources Limited

Annual General Meeting Annual General Meeting Annual General Meeting Extraordinary General Meeting Annual General Meeting Extraordinary General Meeting

April 29, 2008 Singapore April 29, 2008 Singapore

Table of Contents Table of Contents

Introduction 3 Introduction 3 FY2007 Financial Highlights 8 Recent Developments 11 B i St t 13 Business Strategy 13

2

Introduction Introduction

Overview of First Resources Overview of First Resources

• First Resources Limited (“First Resources” or the

“C ”) t bli h d i 2004 “Company”) was established in 2004

• The larger group was established in 1992
• One of the leading oil palm plantation companies and

g p p p producers of crude palm oil (“CPO”) in Indonesia

• Strategically located in Riau province, Sumatera
• Manages more than 86,000 hectares of planted plantations

and operates 7 palm oil mills St f th l t ti t f th l il

• Strong focus on the plantation segment of the palm oil

value chain

• Listed on Singapore Exchange in December 2007

4

Our Business - Upstream Focus Our Business - Upstream Focus p

• Plantations
• 86,354 hectares of total planted area
• 67% mature plantings
• 1.2 mil tons of FFB production in FY2007
• CPO Processing Mills
• 7 palm oil mills
• Capacity of 390 tons/hour
• Capacity of 390 tons/hour
• 278,340 tons of CPO production in FY2007
• Bio-Diesel Plant
• Capacity of 250,000 tons per year
• Planned commissioning in 2008

5

Strong Operational Executions Strong Operational Executions

Production (‘000 Tons)

g p g p

Production (‘000 Tons)

852.6 949.5 1,120.8 1,266.8 600 800 1,000 1,200 1,400 184.1 194.2 227.3 278.3 63 5 150 200 250 300 200 400 600 2004 2005 2006 2007 FFB 32.6 39.0 47.8 63.5 50 100 2004 2005 2006 2007 CPO PK

Yield per Mature Hectare (Tons)

21 80 25

Extraction Rate (%)

20 26 20 30 21 85 22 23 25 15.62 17.25 20.03 21.80 5 10 15 20 25 2004 2005 2006 2007 20.26 20.30 21.85 22.23 3.59 4.07 4.59 5.07 5 10 15 20 25 2004 2005 2006 2007 6 2004 2005 2006 2007 FFB 2004 2005 2006 2007 CPO PK

Key Strengths Key Strengths

Maturity Profile

y g y g

• Pure plantation play
• Focus on upstream segment of value chain

p g

• Upstream operators are biggest beneficiaries of favorable

CPO pricing trends

• Attractive plantation maturity profile

22.4 (32.7%)

86.4 60 90 (Ha '000)

• Weighted average age of trees is 7.2 years
• Only 60% of trees have reached peak production age
• No trees classified as ‘old’ by industry standards
• Young maturity profile supports future growth in FFB

production with minimal increases in costs or capital

58.1 (67.3%)

30 Immature Oil Palm Mature Oil Palm

Age-Makeup

Young Old 0%

production with minimal increases in costs or capital expenditure

• Favourable location
• Strategically located in Riau province

g 11% Prime 89%

• Ideal conditions for oil palm cultivation
• Mill strategically located close to plantations, reduces

transportation costs, ensures quality of FFB

• Significant landbank

7

• Sizeable unplanted landbank located in the Riau province
• Capacity to pursue aggressive future growth plans

Note: Data as of 31 December 2007

FY2007 Financial Highlights FY2007 Financial Highlights

FY2007 Financial Highlights FY2007 Financial Highlights g g g g

Record revenue of Rp 1,691.4 billion, up 97.3% from FY2006 Record net profit attributable to equity holders of Rp 431.3 billion, up 76.9% from FY2006 Strong growth in EBITDA margin from 45.8% FY2006 to 50.6% in FY2007 Strong FY2007 performance driven by record production volumes and surge in CPO prices

9

Balance Sheet Balance Sheet

Rp’ billion 31 Dec 2006 31 Dec 2007 Change (%)

Total Assets 3,804.9 6,248.9 64.2 Cash and Bank Balances 745.5 1,558.1 109.0 Total Liabilities 2 208 9 2 942 3 33 2 Total Liabilities 2,208.9 2,942.3 33.2 Interest Bearing Debts 1,484.1 1,973.3 33.0 Total Equity Attributable to Equity Holders 971.3 3,205.8 230.1

Times (x) 31 Dec 2006 31 Dec 2007

Net Debt /EBITDA 1.88 0.48 EBITDA / Net Interest Expense 3.45 8.17

Strong balance sheet and working capital position, with approximately Rp

10

1,558.1 billion (S$239.7 million) of cash and bank balances on hand

Recent Developments Recent Developments

Recent Developments

Issues Facts and Clarifications

Recent Developments

(A) Mr. Martias’ involvement in Group

• Last involvement as President Commissioner of PT

Ciliandra Perkasa until April 2003 (B) Why was First Resources involved?

• FR not involved or named in court case

( ) y

• FR not involved or named in court case
• Mr. Martias has no interest or managerial role in Group

(C) Impact on operations and financials

• Maintained legal ownership to properties at all times
• Had full and normal operational access
• No financial assistance or guarantee given in relation

to payment of penalty by Mr. Martias (D)Has the court case been settled?

• Financial and other penalties fully served by Mr.

Martias

• KPK retracted announcement to seize assets

(E) Any other legal matters?

• No legal or arbitration proceedings that relate to FR

and to which Mr. Martias is a party

12

Business Strategy Business Strategy

Business Strategy Business Strategy gy gy

No change in our company’s fundamentals and our growth strategies

Plantations

• Continue expansion of plantation footprint through new plantings
• Open to acquisition opportunities to accelerate plantation growth
• Continue to acquire new landbank to support aggressive planting plans
• Expand palm oil mill processing capacity in line with FFB production

growth

Milling

growth

• 1 new mill under construction. Target commissioning in 1Q2009
• New mill will bring aggregate milling capacity to 435MT/hr

Downstream

• Selective exploration into other downstream businesses that could add

value to business model, either within or outside of Indonesia

14

Thank You Thank You

Disclaimer Disclaimer

The information contained in this document has not been independently verified. N t ti t i li d i d t d li No representation or warranty express or implied 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 l i f th ’ fi i l t di iti t Th 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

• f this presentation and are subject to change without notice. None of First

Resources Limited or any of its affiliates, advisers or representatives shall have li bilit h t (i li th i ) f l h any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents.

16

Contact Us Contact Us

If you need further information, please contact:

Serene Lim Investor Relations Manager, Singapore Email: serene.lim@first-resources.com Triyanto Fitriyardi Investor Relations Manager, Indonesia Email: triyanto.fitriyardi@first-resources.com

First Resources Limited

8 Temasek Boulevard 8 Temasek Boulevard #36-02 Suntec Tower Three Singapore 038988 Tel: +65 6333 6788 Fax: +65 6333 6711

17

www.first-resources.com