Kencana Agri Limitedkencana.listedcompany.com/.../KAFinancialAndPerformanceReview1… · Kencana...
13
1 Kencana Agri Limited 1Q 2015 Performance Review
Transcript of Kencana Agri Limitedkencana.listedcompany.com/.../KAFinancialAndPerformanceReview1… · Kencana...
1
Kencana Agri Limited
1Q 2015Performance Review
2
Overview of the Group’s Operations
Location :
Sumatra, Kalimantan, Sulawesi
Palm Oil Mills : 4
Total Capacity : 230 MT/hour
Kernel Crushing Plants : 2
Total Capacity : 435 MT/day
Main products:
CPO (Crude Palm Oil)
CPKO (Crude Palm Kernel Oil)
PKC (Palm Kernel Cake)
Products
Plantation and
Processing
Supporting Business
Biomass Power Plant - 2
Total Capacity : 13.5 MWPort and Bulking Terminal
Total capacity :
120,500 MT
Logistics
Vessels : 6
Total Capacity :
13,800 MT
Renewable by-products:
Empty Fruit Bunches, Liquid
Waste, Kernel Shells, Fibre
3
Significant Land Bank for Future Planting
Total Land Bank 193,570 ha* (Nucleus + Plasma)
65%
10%Immature
13%PrimeMature
12%YoungMature
UnplantedArea
(65%)
PlantedArea
(35%)
Land Bank (ha)
Planted Area(ha)
Unplanted Area(ha)
Total (ha)
% %%
Nucleus
Plasma
Total
53,883
13,689
67,572
31
70
35
120,061
5,937
126,904
173,944
19,626
193,570
90
10
100
* Subject to final measurement
69
30
65
4
Where We Are…
5
Production Highlights 1Q 2015 1Q 2014 Change
FFB Production (MT) 142,745 149,714 -4.7%
- Nucleus 113,589 116,669 -2.6%
- Plasma 29,156 32,505 -10.3%
FFB Processed (MT) 144,576 152,569 -5.2%
- Nucleus 109,691 115,809 -5.3%
- Plasma 28,914 32,505 -11.0%
- External Parties 5,971 4,255 +40.3%
Oil Extraction rates (%)
- CPO 20.7% 21.2% -0.5pp
- CPKO 43.4% 43.4% --
Oil Production (MT)
- CPO (MT) 29,925 32,270 -7.3%
- CPKO (MT) 1,257 3,149 -60.1%
FFB Yield (MT/ha) – Nucleus 3.1 3.8 -0.7%
Oil Yield (MT/ha) 0.6 0.8 -0.2%
Production Highlights
Operational Performance
6
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
70,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q
2015
Plasma
Nucleus
Operational Performance
Phase 1
Oil Palm cultivation started in 1996
in Bangka island, Sumatra (1,215
ha). This was followed by the 2nd
planting in 1998 in South
Kalimantan.
Phase 2
Started in 2004 in South and East
Kalimantan with rapid planting
programme. Total planted area
increased by about 5 times from
phase 1
Phase 3
Started in 2011 in Sulawesi.
Phase 2Phase 1 Phase 3
Development of Kencana’s planted area (Nucleus + Plasma)
7
AGE PROFILE
Prime MatureImmature Total% %
Nucleus
Plasma
Total
18,976
6,249
25,225
17,016
2,703
19,719
Young Mature %
17,891
4,737
22,628
53,883
13,689
67,572
Age distribution of oil palms (nucleus)
% o
f N
ucle
us P
lante
d
Weighted
Average Age
= 7.4 Years
Operational Performance
65% OF IMMATURE AND YOUNG MATURE PALMS (NUCLEUS) WILL ENTER THE PRIME MATURE PHASE,
AND WILL DRIVE THE POTENTIAL OF STRONG PRODUCTION GROWTH IN THE NEAR FUTURE.
32
20
29
33
35
34
35
46
37
0%
3%
6%
9%
12%
15%
19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
8
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q 2015
• 2000 – 2014 CAGR = 26.1%
• 2015 onward – expect steady increase in production
MT
FFB Production Trend (Nucleus)
Operational Performance
9
Financial Highlights
*) Others include sales of Kernel, Cake, FFB, and income from logistics.
1Q 2015 1Q 2014 Change
Sales Volume (MT)
- CPO 46,682 55,452 -15.8%
- CPKO 2,400 2,250 +6.7%
Sales Revenue (US$’000)
- CPO 27,244 43,535 -37.4%
- CPKO 2,023 2,220 -8.9%
- OTHERS* 3,024 4,355 -30.6%
Average Selling Price (US$)
- CPO 584 785 -25.6%
- CPKO 843 986 -14.5%
Financial Highlights
Financial Performance
10
Financial Performance
1Q 2015 1Q 2014 Change
Revenue 32,291 50,110 -35.6%
Gross profit 5,822 12,681 -54.1%
Operating (loss)/profit (3,573) 11,670 n/m
(Loss)/Profit before tax (8,330) 8,291 n/m
Net (loss)/profit for the period (6,953) 6,237 n/m
EBITDA (3,206) 13,525 n/m
Gross margin (%) 18.0 25.3 -7.3pp
Net profit margin (%) -21.5 12.4 -33.9pp
EBITA margin (%) -9.9 27.0 -36.9pp
Income Statement Highlights (US$’000)
n/m: not meaningful
11
As at
31 Mar 2015
As at
31 Dec 2014Change
Current assets 64,005 53,570 +19.5%
Non-current assets 440,843 457,425 -3.6%
Total assets 504,848 510,995 -1.2%
Current liabilities 101,026 97,981 +3.1%
Non-current liabilities 246,899 240,279 +2.8%
Total liabilities 347,925 338,260 +2.9%
Shareholders’ equity 156,923 172,735 -9.2%
Net debt / equity ratio (%) 133.1 131.4 +1.7pp
Net debt / total assets (%) 41.4 44.4 -3.0pp
Net debt / EBITDA (x) -65.2 16.8 n/m
EBITDA / interest expense (x) -0.8 4.0 n/m
Balance Sheet Highlights (US$’000)
n/m: not meaningful
Financial Performance
12
n/m: not meaningful
1Q 2015 1Q 2014 Change
Cash at beginning of period 14,124 14,208 -0.6%
Net cash from operating activities 22,558 16,537 +36.4%
Net cash used in investing activities (6,905) (14,094) +51.0%
Net cash used in financing activities (5,828) (3,957) -47.3%
Net increase in cash 9,825 (1,514) n/m
Cash at end of period 23,949 12,694 +88.7%
Cash Flow (US$’000)
Financial Performance
13
This document has not been independently verified and has been prepared for informational purposes only. No representation or warranty expressor imply is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinionscontained 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’sfinancial or trading position or prospects. The information and opinions contained in these materials are provided as at the date of this presentationand 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) forany loss whatsoever arising from any use of this document or its contents.
Disclaimer
Thank You
