Management Presentation Management Presentation Annual Indonesian - - PowerPoint PPT Presentation

Management Presentation Management Presentation

Indonesian CSR Award

2011

Annual Report Award

2011

FY11 Performance and Outlook for 2012

Grand Platinum

Indonesia Corporate

3rd Place Non Financial Listed Private Co.

Jakarta, 5 June 2012

Sustainability Report Award

2011

Best 1st Time

Governance Award

2011

Most

Best 1st Time Reporting

Most Improved

Corporate Information

• Established in 1911 as a rubber plantation and processor,

today PT Bakrie Sumatera Plantations Tbk (“UNSP”) has evolved to become a fully integrated and sustainable agro‐ business with three main business fields:

2 931 2 940 4,367 4,000 5,000

Sales value (Rp bn)

1. Palm oil plantation and production 2. Rubber plantation and processing 3. Oleochemical processing

• We are strategically located in fertile and infrastructure

1,181 1,949 2,931 2,325 2,940 1,000 2,000 3,000

• We are strategically located in fertile and infrastructure

ready Sumatra island with further developments in Kalimantan

• Managing more than 120,000Ha of planted area with a

h l h b l f 79% d 21% i

‐ FY06 FY07 FY08 FY09 FY10 FY11

Ebitda (Rp bn)

healthy balance of 79% mature and 21% immature

• Currently operating 13 factories with combined output

capacity approximately 700,000MT p.a.

• Well‐recognized for strong commitment to the environment

651 884 598 1,158 1,481 900 1,200 1,500 1,800

from the ISO 14001 and RSPO certification awarded

• Supported by over 20,000 employees, UNSP is set to

capture the value of favorable palm oil and rubber industry for all stakeholders

345 651 598 ‐ 300 600 FY06 FY07 FY08 FY09 FY10 FY11

2

PT Bakrie Sumatera Plantations Tbk | Management Presentation | April 2012

Corporate Milestones

1911 Established as NV Hollandsch Amerikansse Plantage Matschappij, a rubber plantation company 1986 Acquired by Bakrie & Brothers 1990 Listed in Jakarta and Surabaya Stock Exchange

PK 8%

Sales Contribution FY11

1990 Listed in Jakarta and Surabaya Stock Exchange Diversified into oil palm business 1992 Renamed to PT Bakrie Sumatera Plantations Tbk 2003 Certified as an ISO 9001:2000 Company

CPO 56% Rubber 26%

Assets (Rp bn)

2004 Stock Split and Rights Issue I 2005 Certified as an ISO 14001 Company 2007 Rights Issue II & Warant seri 1 Establishment of Agri Resources BV to further develop

Oleo 10% 18,498 18,702 10,000 15,000 20,000

Establishment of Agri Resources BV to further develop

• il palm plantation in Sumatra

2008 Expanding footprint into Kalimantan through IGI Ltd. 2010 Rights Issue III & Warant seri 2

1,783 4,311 4,700 5,072 ‐ 5,000 FY06 FY08 FY08 FY09 FY10 FY11

Entered the Oleochemical business Granted the RSPO certification for North Sumatra Unit Collaboration with ASD Costa Rica to develop seed garden 2011 Centennial Establishment Celebration of UNSP 2011 Centennial Establishment Celebration of UNSP 2012 Celebrating 70 years establishment of Bakrie Group

PT Bakrie Sumatera Plantations Tbk | Management Presentation | April 2012

3

Plantations profile

Planted Area Location Size (Ha) Palm nucleus North Sumatra 16,967 Riau 12,200 West Sumatra 11,112 100 120 140

Planted Area (Ha)

75 5 81.4 79.2 124.1 122.6 Jambi 23,771

• S. Sumatra

20,979 South Kalimantan 7,171 Total Palm Nucleus 92,200

12.8 13.8 16.8 14.1 14.9 11.4 20.1 18.8 18.9 18 19.4 18.9 19.1 42.8 45.8 47.1 89.8 92.2

20 40 60 80

Plasma Rubber Nucleus Palm Nucleus

52.0 75.5 81.4 79.2

N.A.D. , Palm Plasma West Sumatra 3,738 Jambi 7,700 Total Palm Plasma 11 438

FY06 FY07 FY08 FY09 FY10 FY11

• E. Kalimantan
• W. Kalimantan

C Kalimantan Jambi Riau

• N. Sumatra
• W. Sumatra

Total Palm Plasma 11,438 Rubber Nucleus North Sumatra 10,179 Bengkulu 5,058 Lampung 3 684 Jawa

• C. Kalimantan
• S. Kalimantan

Lampung Bengkulu

• S. Sumatra

Lampung 3,684 Tot Rubber Nucleus 18,921 Total Plantation 122,559

As of Dec 2011

4

PT Bakrie Sumatera Plantations Tbk | Management Presentation | April 2012

Jawa

“HGU (Land Rights) as of December 2011: 154,464 Ha”

Mills and Factories

Factories Output Capacity p a End Products Status Location Factories Output Capacity p.a. End Products Status Location CPO Mills (8) 585,000 MT Crude Palm Oil Commercial Operation N.Sum (2), Riau, W.Sum, Jambi (3), S.Sum Rubber Factories (4) 78,940 MT Natural Rubber Commercial Operation N.Sum, Bengkulu (2), Lampung Fatty Acid FSC 45,000 MT Fatty Acid, Glycerin Commercial Operation North Sumatra – Tanjung Morawa F tt A id I 100 000 MT F tt A id Gl i O ti N th S t K l T j Fatty Acid I 100,000 MT Fatty Acid, Glycerin Operation North Sumatra – Kuala Tanjung Fatty Alcohol I 33,000 MT Fatty Alcohol Operation North Sumatra – Kuala Tanjung Fatty Acid II 84,000 MT Fatty Acid, Glycerin Under construction North Sumatra – Kuala Tanjung Fatty Alcohol II 99,000 MT Fatty Alcohol Under construction North Sumatra – Kuala Tanjung CPO Refinery 465,000 MT Olein, Stearin, PFAD Under construction North Sumatra – Kuala Tanjung Kernel Crusher 72,600 MT Crude Palm Kernel Oil Preparation for Operation North Sumatra – Kuala Tanjung

As per Dec 2011

Fully Integrated Oil Palm Business (based on output capacity)

465,000MT Olein, Strearin & PFAD

Refinery Refinery CPO Mill CPO Mill Plantations Plantations

Collaboration with

Seed Garden Seed Garden

45,000MT Fatty Acid & Glycerin

Fatty Acid FSC Fatty Acid FSC

585,000MT CPO

CPO Mill CPO Mill

92,200 Ha Sumatera and Kalimantan ASD Costa Rica Target 2016 20mn seeds production 72,600MT PKO

PK Crusher PK Crusher

184,000MT Fatty Acid &

Fatty Acid I & II Fatty Acid I & II

132,000MT Fatty Alcohol

Fatty Alcohol I & II Fatty Alcohol I & II

5

PT Bakrie Sumatera Plantations Tbk | Management Presentation | April 2012

Fatty Acid & Glycerin Fatty Alcohol

Production Highlights – Palm oil

Factory Prod (MT) 9m10 9m11 YoY FY10 FY11 YoY Crude Palm Oil 176,507 235,861 34% 255,132 320,232 26% CPO extraction rate 21% 20% 21 % 21% Palm Kernel 40,707 53,132 31% 59,164 72,730 23%

• Factory production of CPO and PK

demonstrated strong growth at 26% and 23% YoY respectively boosted by higher Fresh Fruit Bunch (FFB) production both nucleus and

Kernel extraction rate 5% 5% 5 % 5% Field Production (MT) Nucleus 592,678 724,105 22% 873,555 996,627 14% Nucleus yield /Ha 9.6 10.5 13.7 13.8

plasma, and increase in purchased FFB volume.

• FFB Production of Nucleus and plasma grew on

the back of improvement in fertilizer application, maturing tree profile, also

Plasma 125,797 141,358 12% 179,465 202,367 13% Plasma yield /Ha 9.9 12.4 14.1 17.7 Purchased 130,735 279,290 114% 171,016 368,055 115%

pp , g p , supported by more favorable weather.

• Significantly higher FFB third party purchase to
• ptimize factory utilization.

Planted Area (Ha) FY11 Oil Palm Nucleus 92,200 Oil Palm Plasma 11,438 Total Planted Area 103 638 0‐4 yrs 25% 17‐20 15% >20yrs 1%

Oil Palm Nucleus Age Profile FY11

63.4 72.1 75 90

Nucleus Oil Palm Matured (k Ha)

Total Planted Area 103,638 5‐8 13‐16 28% 18.3 27.7 30.8 32.1 15 30 45 60 5 8 23% 9‐12 8%

PT Bakrie Sumatera Plantations Tbk | Management Presentation | April 2012

6

FY06 FY07 FY08 FY09 FY10 FY11

Production Highlights ‐ Rubber

• Rubber nucleus field production maintained at

20,334MT due to maturing aging tree profile as well as ongoing rubber replanting program.

• Despite steady nucleus field productivity,

Factory Prod (MT) 9m10 9m11 YoY FY10 FY11 YoY Natural Rubber 22,120 21,179 ‐4% 29,986 27,687 ‐8% Field Production (MT) Nucleus 14,678 14,819 1% 20,402 20,334 0%

p y p y, Rubber factory production were 27,687MT or slightly declined because we are implementing selective purchase to maintain quality.

• Future growth driver: 36% of the planted

Nucleus yield /Ha 1.1 1.1 1.5 1.5 Purchased 6,824 5,987 ‐12% 11,662 7,093 ‐39% Planted Area (Ha) FY11

Future growth driver: 36% of the planted Rubber Nucleus is still immature with age ranging between 0‐6 years.

Rubber Nucleus 18,921 0‐6 yrs Above 20 23%

Rubber Nucleus Age Pofile FY11

Cenex 27% Others

Rubber Sales Vol Contribution FY11

y 36% 17‐20 8% Sir10/20 45% Sir3cv RSS1 10% 4%

PT Bakrie Sumatera Plantations Tbk | Management Presentation | April 2012

7

7‐12 21% 13‐16 12% Sir3cv 14%

Oleochemical Business – Capturing the Value

• After the acquisition of Oleochemical facilities in 2010, we have become a fully‐integrated plantation

company and shall further capture the value‐added of upstream and downstream processing activities.

• Oleochemical business serves the fast moving consumer goods industry.
• Global demand for Oleochemical products are expected to grow at 3%‐4% rate p.a. supported by Asia’s large

Global demand for Oleochemical products are expected to grow at 3% 4% rate p.a. supported by Asia s large population, income growth prospects and improving living standards.

• Our facilities can produce wide range of Oleochemical and refinery products, namely Fatty Acids, Refined

Glycerin, Fatty Alcohols, RBD Palm Olein, RBD Palm Stearin and PFAD.

• Tanjung Morawa Fatty Acid Plant has begun commercial production in December 2010 while other facilities
• Tanjung Morawa Fatty Acid Plant has begun commercial production in December 2010 while other facilities

will follow in stages.

• Endorsement by leading global consumer goods player via offtake agreement.
• Additional benefit from “zero percent” Export Tax for Fatty Alcohol, Fatty Acid and Refined Glycerin products.

Indonesia Export Tax

CPO CPO PKO RBD Palm Olein RBD Palm Stearin PFAD Fatty Acid Fatty Alcohol Glycerin 951 – 1,000 13.5% 13.5% 6.0% 4.0% 7.0% 0.0% 0.0% 0.0% 1,001 – 1,050 15.0% 15.0% 7.0% 5.0% 8.0% 0.0% 0.0% 0.0% 1,051 – 1,100 16.5% 16.5% 8.0% 6.0% 9.0% 0.0% 0.0% 0.0% 1,001 – 1,150 18.0% 18.0% 9.0% 7.0% 10.5% 0.0% 0.0% 0.0% 1,151 – 1,200 19.5% 19.5% 10.0% 8.0% 12.0% 0.0% 0.0% 0.0%

8

PT Bakrie Sumatera Plantations Tbk | Management Presentation | April 2012

Finance Minister Decree No.128/PMK.011/2011

Financial Highlights – Sales Breakdown

Sales (Rp bn) 9m10 9m11 YoY FY10 FY11 YoY Crude Palm Oil 1,085 1,841 70% 1,818 2,442 34% Palm Kernel 147 280 90% 230 349 52% Rubber 663 894 35% 870 1,127 30%

• FY11 Sales of Rp 4,367bn or approximately

49% higher from last year, driven by all three business; Palm Oil, Rubber and Oleochemicals.

• CPO and Palm Kernel Sales grew by 34% and

Oleochemicals 328 n.a. 22 449 1,979% Total Sales 1,896 3,343 76% 2,940 4,367 49% Sales Volume (MT) Crude Palm Oil 165,357 238,762 44% 230,354 331,243 44%

g y 52% YoY respectively as a result of significantly higher sales volume.

• Rubber continued to benefit from high price

environment in 2011, Sales reached Rp1,127bn

Palm Kernel 38,764 53,938 39% 53,573 74,595 39% Rubber 25,348 21,435 ‐15% 30,731 28,336 ‐8% Oleochemicals 28,748 n.a. 1,911 45,421 2,277%

• Avg. Selling Price (USD/MT)

environment in 2011, Sales reached Rp1,127bn

• r grew 30% YoY.
• Oleochemicals Sales booked Rp 449bn or 11%

contribution to Consolidated Sales ‐ compared to just 1% in FY10

Crude Palm Oil 736 873 19% 869 840 ‐3% Palm Kernel 426 588 38% 472 533 13% Rubber 2,932 4,727 61% 3,117 4,531 45% Oleochemicals 1,293 n.a. 1,245 1,127 ‐9%

to just 1% in FY10.

216 273 280 230 331 280 350

CPO Sales Volume (K MT)

160 216 230 70 140 210

PT Bakrie Sumatera Plantations Tbk | Management Presentation | April 2012

9

‐ FY06 FY07 FY08 FY09 FY10 FY11

Consolidated Financial Statement Highlights

• Net Income Current Period Rp 746bn, driven by

higher productivity, favorable business environment and a windfall from ex‐Domba Mas debt restructuring.

Inc.Stat ements (Rp bn) 9m10 9m11 YoY FY10 FY11 YoY Sales 1,896 3,343 76% 2,940 4,367 49% Gross Profit 783 1,236 58% 1,279 1,795 40% Operating profit 568 828 46% 855 1,219 43%

• Gross Margin softened mainly due to

Oleochemicals’ relatively modest margin and also impacted by higher FFB third party purchase.

• Total asset maintained at Rp 18,702bn as we

Ebitda** 898 1016 13% 1,158 1,481 28% Net Income 245 713 191% 809 746 ‐8% Margins Gross Margin 41% 37% 44% 41%

Total asset maintained at Rp 18,702bn as we finalized bonds refinancing in November 2011.

• FY10 Debt increased significantly due to

consolidation of debt post acquisition of Oleochemical facilities ex‐Domba Mas

Operating Margin 30% 25% 29% 28% Ebitda Margin 47% 30% 39% 34% Net Margin 13% 21% 28% 17% Balance Sheets (Rp bn)

Oleochemical facilities ex‐Domba Mas.

( p ) Total Assets 15,063 18,686 24% 18,498 18,702 1% Cash and equivalent 976 580 ‐41% 935 202 ‐39% Plantations and FA 6,399 10,584 65% 10,549 10,723 2% Other Assets 7 688 7 522 ‐2% 7 014 7 777 0% 127% 85% 120% 150%

Net Gearing

Other Assets 7,688 7,522 2% 7,014 7,777 0% Debt 5,623 7,977 49% 8,226 7,719 ‐6% Other Liabilities 1,490 1,841 24% 1,728 1,925 ‐11% Equity 7,950 8,867 12% 8,543 9,058 6%

**Ebitda = COGS – SGnA + Depreciation + Amortization

50% 61% 58% 83% 0% 30% 60% 90%

PT Bakrie Sumatera Plantations Tbk | Management Presentation | April 2012

10

Ebitda = COGS SGnA + Depreciation + Amortization

FY06 FY07 FY08 FY09 FY10 FY11

Strategy and Outlook

• Palm oil and Rubber Industry Outlook

We believe the growth in global demand for palm oil and rubber will remain stable driven by increasing consumption in developing countries as well as continued consumer interest in green‐sustainable products which resulting in the thightening supply situation. g g g pp y Thus we expect commodity prices will remain favorable over the medium to long term.

• Focus to accelerate Oleochemical Business

The first Fatty Alcohol line in Kuala Tanjung will be ready for commercial production in near future. D l f Ol h i l j ill b d i d d b f ll l d i 2013 Development of Oleochemical project will be done in stages and expected to be fully completed in 2013.

• Greenfiled delevopments

Approximately 80,000Ha of land in well‐diversified location including Muara Tebo, Sarolangun, Pangkalan Bun and Indragiri Hilir will be the source of future growth for palm oil and rubber plantations

• Seed Garden Project in‐collaboration with ASD Costa Rica

To secure long term oil palm replanting program and assuring higher yields.

• Debt Refinancing

USD150 b d i h d l d t t id J l 2012 W k t i f ll t k h ld th t UNSP USD150mn bond is scheduled to mature on mid July 2012. We are keen to inform all stakeholders that UNSP has kicked start the refinancing process and expecting completion in 2Q12.

11

PT Bakrie Sumatera Plantations Tbk | Management Presentation | April 2012

Thank you

Visit us at w w w .bakriesum atera.com Mailing address: Contacts: PT Bakrie Sum atera Plantations Tbk Hadi Susilo Corporate Center Investor Relations Corporate Center Investor Relations Kompleks Rasuna Epicentrum e-mail hadi.s@bakriesumatera.com Bakrie Tower 18th-19th floor

• ffice

+ 62 21 2994 1286-87

• Jl. H.R. Rasuna Said

Jakarta 12960, Indonesia Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation Any forward looking statements are based on estimation the realization thereof may deviate distributed to parties outside the presentation. Any forward looking statements are based on estimation, the realization thereof may deviate. PT Bakrie Sumatera Plantations Tbk accepts no liability whatsoever with respect to the use of this document or its contents.

12

PT Bakrie Sumatera Plantations Tbk | Management Presentation | April 2012