INTEGRATED PLANTATION WITH LEADING BRANDS Company Presentation Q 2008 Results 29 April 2008
DISCLAIMER This presentation was prepared solely and exclusively for the parties presently being invited for the purposes of discussion. Neither this presentation nor any of its content may be reproduced, disclosed or used without the prior written consent of Indofood Agri Resources Ltd. This presentation may contain statements that convey future oriented expectations which represent the Company s present views on the probable future events and financial plans. Such views are presented on the basis of current assumptions, are exposed to various risks, and are subject to considerable changes at any time. Presented assumptions are presumed correct at the, and based on the data available on the, date at which this presentation is assembled. The Company warrants no assurance that such outlook will, in part or as a whole, eventually be materialized. Actual results may diverge significantly from those projected. Indofood Agri Resources Ltd. All rights reserved. 2
PRESENTATION OUTLINE. Strategic Direction 2. Financial Highlights 3. Financial Position 4. Segment Information 5. Sales Breakdown 6. Plantation Highlights 3
Strategic Direction PLANTATION Continue to expand new planting area to achieve 250,000 ha of planted area by 200 Planting of 35,000 ha in 2008 COOKING OIL & FATS Strengthen brands identity and brand loyalty by Advertising & Promotion programs, to build brand equity Increase focus on High Class Outlets (HCO) in line with HCO rapid growth. Self sufficiency in supply of CPO COMMODITY Strengthen business model to improve profitability Increase utilization of copra mills Explore additional export opportunities 4
IndoAgri Q 2008 Results Highlights Revenue increased by 37% to Rp2,850 bn Gross Profit rose by 376% to Rp,77 bn, GP% from 2% to 4% EBITDA increased by 466% to Rp,33 bn, EBITDA% from 7% to 40% Profit after Tax increased 586% to Rp704 bn Strong results driven by: Acquisitions, mainly Lonsum Increased CPO prices Increased volume in branded cooking oil and margarine Margin growth in Cooking Oil & Fats and Commodity Division 5
Financial Highlights Rp bn Description i Q 2008 Q 2007 Growth Q4 2007 Growth Sales 2,850 00%,202 00% 37% 2,288 00% 25% Gross Profit,7777 4% 247 2% 376% 803 35% 47% EBITDA,33 40% 200 7% 466% 543 24% 09% Gains arising i from 87 7% n.m. 67 3% n.m. changes in fair value of biological assets Operating Profit,077 38% 257 2% 39% 55 24% 96% Tax Expense 308 % 77 6% 302% 80 8% 7% Net Profit After Tax 704 25% 03 9% 586% 294 3% 39% Earnings per Share () Rp 374 73 42% 87 00% () on a weighted average and fully diluted basis 6
Financial Highlights Q 2008 Rp bn Description IndoAgri*) Lonsum Combined Sales,853 00% 997 00% 2,850 00% Gross Profit 758 4% 49 42%,77 4% EBITDA 7 38% 422 42%,33 40% Operating Profit 687 37% 390 39%,077 38% Tax Expense 90 0% 8 2% 308 % Net Profit After Tax 437 24% 267 27% 704 25% *) includes the eliminations and FRS adjustments 7
Financial Position Growing Business with low gearing Rp bn Description 3 Mar 2008 3 Dec 2007 TOTAL ASSETS 9,793 8,82 Cash,405,702 TOTAL LIABILITIES 9,268 8,99 Interest t Bearing Debt 5,296 5,343 TOTAL EQUITY 0,525 9,82 Net Debt / Equity Ratio 0.37x 0.37x Net Assets Value per Share 5,37 4,943 8
IndoAgri Q 2008 Results 6,506 Rp bn SALES 2,850,202,436,579 2,288 Inc 37% Q 2008 Q 2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007 FY2008 FY2007,552,33 EBITDA 35 458 543 Inc 466% 200 Q 2008 Q 2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007 FY2008 FY2007,602 OPERATING PROFIT,077 257 368 426 55 Inc 39% 9 Q 2008 Q 2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007 FY2008 FY2007
Segment Information Rp bn DESCRIPTION SALES EBITDA EBITDA% Q 2008 Q 2007 Q 2008 Q 2007 Q 2008 Q 2007 Plantations,80 367,024 243 56.6% 66.% IndoAgri 88 367 630 243 77.0% 66.% Lonsum 997 422 42.3% Elimination (5) (28) Cooking Oil & Fats,554 820 85 25 5.5% 3.0% Commodity 328 305 35 2 0.8% 3.9% Elimination & Adjustment (842) (290) () (80) Total 2,850,202,33 200 39.7% 6.7% 0
Segment Information Q 2008 EXTERNAL SALES % EBITDA 7% 3% 34% % 55% Plantation Cooking Oil Commodity 90%
Sales Breakdown Plantation (MT) CPO Q 2008 Q 2007 % 69,60 65,697 57% PK 37,683 5,8686 48% Cooking Oil & Fats Volume (MT) Cooking Oil *) 0,630 84,99 20% Margarine 39,886 37,945 5% *) Commodity Volume (MT) Coconut Oil & Derivatives 23,000 37,74 (39%) **) Palm Oil & Derivatives 7,324 0,984 (33%) External Sales Value (Rp bn) Plantation 972 79 nm n.m. Cooking Oil & Fats,554 820 90% Commodity 324 302 7% **) Note: *) exclude by products **) timing of shipment 2
Plantation Highlights In Hectares 3 Mar 2008 3 Dec 2007 Increase Total Land Bank 406,59 406,59 IndoAgri 237,262 237,262 Lonsum 69,257 69,257 Planted Area Oil Palm IndoAgri 65,853 93,996 6,457 9,985 4,396 2,0 Lonsum 7,857 69,472 2,385 Mature Area Oil Palm 22,5 8,030 4,2 IndoAgri 66,92 65,34,57 Lonsum 55,239 52,689 2,550 3
Plantation Highlights Q 2008 Q 2007 Growth Q4 2007 Growth FFB Production ( 000 tons) 569 28 03% 573 (%) IndoAgri 33 28 8% 385 (4%) Lonsum 238 n.m. 88 27% FFB Yield (Ton / Ha) 4.7 4.6 4.9 IndoAgri 4.9 4.6 5.9 Lonsum 4.3 3.6 CPO Production ( 000 tons) 70 65 6% 68 % IndoAgri Lonsum 84 86 65 29% n.m. 97 72 (3%) 20% CPO Extraction Rate (%) IndoAgri Lonsum 23.0 22.3 23.7 22.6 22.6 22.7 22.3 23.3 PK Production ( 000 tons) 37 4 62% 38 (%) IndoAgri Lonsum PK Extraction Rate (%) 8 9 5. 4 4.9 30% n.m. 22 6 5. (5%) 9% IndoAgri 4.9 4.9 5.0 Lonsum 5.2 5.2 4
Plantation Production,506,40 In MT FFB 568,502 280,65 294,986 357,79 572,748 Incc 03% Q 2008 Q 2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007 FY2008 FY2007 383,96 CPO 70,02 65,242 68,34 8,999 68,407 Inc 6% Q 2008 Q 2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007 FY2008 FY2007 84,878 PK 37,408 37,740 Inc 62% 4,258 5,053 7,827 5 Q2008 Q2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007 FY2008 FY2007
Cooking Oil & Fats Sales 37,038 (in MT) Sales Volume Cooking Oil 0,630 84,99 90,654 05,376 90,08 Inc 20% Q2008 Q2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007 FY2008 FY2007 83,474 Sales Volume Margarine 39,886 37,944 50,456 54,30 40,943 Inc 5% Q2008 Q2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007 FY2008 FY2007 (in Rp mn) Sales Value 4,402,844,553,844 820,28,05,362,33,26,27,94 Inc 89% Q2008 Q2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007 FY2008 FY2007 6
Commodity Sales Sales Volume Coconut Oil & Derivatives 08,75 (in MT) 23,000 37,74 22,800 4000 4,000 34,20 Dec 39% Q2008 Q2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007 FY2008 FY2007 Sales Volume Palm Oil & Derivatives 44,46 20,884 Dec 33% 7,324 0,984 8,745 3848 3,848 Q2008 Q2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007 FY2008 FY2007 (in Rp mn) Sales Value,75,92 Inc 8% 328,365 304,848 37,693 95,950 356,70 Q2008 Q2007 Q2 2008 Q2 2007 Q3 2008 Q3 2007 Q4 2008 Q4 2007 FY2008 FY2007 7
Diversified EndUser Markets Q 2008 External Sales 8% Consumer 2% Industrial 0% 2% 38% 7% Consumer Pack 2% SemiConsumer Pack 7% 9% Industrial Cooking Oil Crude Palm Oil & Palm Kernel Other Intermediate & Byproducts Margarine & Shortening Crude Coconut Oil / RBD Coconut Oil 25% 8
Revenue by Geographical Market Q 2008 9% 2% 3% 20% Indonesia 66% Asia Europe Africa, Middle East and Oceania America 9
SUPPLEMENTAL INFORMATION 20
Hectare Statement (Combined Group) Q 2008 Oil Palm Mature Immature Total Plantations plantations plantations Planted Area Location (hectares) (hectares) (hectares) Riau 56,95 808 57,003 34 North Sumatra South Sumatra West Kalimantan East Kalimantan Java 30,864 9,89 0,77 4,556 3,674 2,5 8,42 9,925 2 34,538 40,970 8,859 4,48 2 Total 22,5 43,702 65,853 00 % 2 25 9 Crop Oil palm Rubber Cocoa Others Mature plantations (hectares) 22,5 8,95 2,270 602 Immature plantations (hectares) 43,702 3,40 232 262 Total Planted Area (hectares) 65,853 22,325 2,502 864 Total 43,938 47,606 9,544 00 % 87 2 0 2
Age Profile of Oil Palm Plantations Q 2008 In Hectares Average Up to 3 4 6 7 to 20 Above Age years years years 20 years Total IndoAgri 3 24,952 5,086 39,956 24,002 93,996 Lonsum 2,342,407 42,056 6,052 7,857 Total 2 37,294 6,493 82,02 30,054054 65,853 Percentage of total planted area 23 0 49 8 00 22
Hectare Statement (IndoAgri) Q 2008 Oil Palm Plantations Location Mature plantations (hectares) Immature plantations (hectares) Total Planted Area (hectares) Riau South Sumatra West Kalimantan East Kalimantan 56,95 0,77 808 8,209 8,42 9,925925 57,003 8,209 8,859 9,925925 6 9 20 0 Total 66,92 27,084 93,996 00 % Mature Immature Total Crop () plantations plantations Planted Area % (hectares) (hectares) (hectares) Oil palm 66,92 27,084 93,996996 95 Rubber 5,05 5,05 5 Total 7,927 27,084 99,0 00 23
Hectare Statement (Lonsum) Q 2008 Oil Palm Plantations Location Mature plantations (hectares) Immature plantations (hectares) Total Planted Area (hectares) North Sumatra 30,864 3,674 34,538 48 South Sumatra Java Sulawesi East Kalimantan 9,89 4,556 2,942 2 32,76 2 4,556 46 0 6 Total 55,239 6,68 7,857 00 Crop Mature plantations (hectares) Immature plantations (hectares) % Total Planted Area % (hectares) Oil palm Rubber 55,239 3,900 6,68 3,40 7,857 7,30 77 9 Cocoa Others 2,270 602 232 262 2,502 864 3 Total 72,0 20,522 92,533 00.0 24
Production Capacity as of 3 March 2008 Facilities Riau North South Annual processing Sumatra Sumatra Java Kalimantan Sulawesi Total capacity (tonnes) Palm Oil Mill 6 4 6 2 8 3,756,000 FFB Copra Crushing 3 3 270,000 Copra Refineries Refinery Fractionation Margarine 2 2 2 4 4 2 885,000 544,500 328,500 CPO RBDPO Margarine Crumb rubber factories 3 25,056 Dry rubber Sheet rubber factories 2 6,880 Dry rubber Cocoa factories 3,750 Dry beans Tea factory,728 Black tea Total 6 8 7 8 2 7 38 25
THANK YOU 26