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5
1 1
3rd QUARTER 2014 Presentation to Investors/Analysts
19 November 2014
+17%
Mature Area
15.45mt/ha
FFB Yield
+5%
FFB Production
+16%
FFB Processed
+111%
FFB Purchased
20.15%
OER
+16%
CPO Production
+10%
CPO ASP
4.44%
KER
+24%
Revenue
+15%
Gross Profit
+26%
Cost of Sales
+18%
EBITDA
+24%
Operating Profit
+43%
Profit After Tax
9M14 Highlights
Avg Mature Area (ha) 3
2,7
63
38
,41
5
9M13 9M14
+17%
FFB Production (MT)
56
4,2
10
59
3,6
56
9M13 9M14
+5%
CPO Production (MT)
11
2,0
19
12
9,7
71
9M13 9M14
+16%
FFB Processed (MT)
55
6,3
10
64
4,0
04
9M13 9M14
+16%
CPO Sales (MT)
11
5,3
49
12
8,8
09
9M13 9M14
+12%
PK Production (MT)
26
,79
1
28
,56
9
9M13 9M14
+7%
Revenue Drivers – 9M Comparison
1,1
08
1,3
26
9M13 9M14
CPO Production Cost (RM/MT) A
vera
ge
18
9
21
8
9M13 9M14
Estate Production Cost (RM/MT)
55
60
9M13 9M14
Mill Manufacturing Cost (RM/MT)
*excl depreciation *excl depreciation
*excl depreciation
+20%
+20%
Higher costs attributed to younger estates
+8%
FFB Yield (MT/ha) 1
7.2
2
15
.45
9M13 9M14
KER (%)
4.8
2
4.4
4
9M13 9M14
-0.38 ppt
OER (%)
20
.14
20
.15
9M13 9M14
+0.01 ppt
-10% Prolonged dry spell throughout February - May
1st year harvesting: 7,484ha @ 20% of mature area
Lower yields attributed to younger estates, dry spell
Industry-wide OER and KER downtrend
4.51 4.66
5.76
7.22
4.89
5.41
6.92 6.61
4.48 4.86
6.11
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
-
50,000
100,000
150,000
200,000
250,000
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
FFB
Pro
du
ctio
n (
MT)
Post major acquisitions
FFB Y
ield
/he
ctare (MT/H
a)
Lower yield due to bigger contribution of younger estates
1.00
1.20
1.40
1.60
1.80
2.00
2.20
2.40
Jan Feb Mar Apr May Jun Jul Aug Sep
Yie
ld/H
a
Actual 2014 MPOB
However, yield trend is still above industry average
8 8
2ND QUARTER 2014 Profit & Loss Statement
(RM ‘000) 9M14 9M13
Revenue 390,149 315,404
Sales of CPO 302,792 247,143
Sales of PK 49,213 31,965
Sales of FFB 37,243 24,827
Management fees 719 11,468
Dividends 183 0
Cost of Sales (307,280) (243,118)
Gross Profit 82,869 72,286
Other Expenses
Admin expenses (12,367) (12,908)
Other operating expenses (3,815) (4,919)
Zakat (189) 0
Finance costs (19,387) (17,375)
Other Income 4,834 3,159
Profit Before Tax 51,945 40,242
Tax (606) (4,396)
Profit After Tax 51,339 35,846
EBITDA 132,872 112,512
Gross Profit before amortisation 125,002 112,632
Revenue up by 24%
EBITDA up by 18% Gross profit excl amort up by 11%
Gross profit up by 15%
PBT up by 29%
PAT up by 43%
Costs up by 26% in line with higher production as well as younger age
profile
Overview of Profit & Loss (9M14)
40%
36%
39%
30% 30% 32%
42%
38%
31%
37% 34%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
Revenue Gross Profit EBITDA Net Profit EBITDA Margin
(RM) EBITDA margin (%)
Healthy growth in revenue, EBITDA margins sustained
11 11
APPENDIX 3Q14 Financial Results
+17%
Mature Area
6.11 mt/ha
FFB Yield
+3%
FFB Production
+6%
FFB Processed
+47%
FFB Purchased
20.36%
OER
+6%
CPO Production
-5%
CPO ASP
4.47%
KER
+2%
Revenue
-24%
Gross Profit
+13%
Cost of Sales
-17%
EBITDA
-28%
Operating Profit
-14%
Profit After Tax
3Q14 Highlights
Avg Mature Area (ha)
32
,76
3
38
,41
5
38
,41
5
3Q13 3Q14 2Q14
+17%
FFB Production (MT)
22
7,4
07
23
4,8
52
18
6,8
02
3Q13 3Q14 2Q14
+3%
CPO Production (MT)
49
,13
0
52
,03
3
38
,12
1
3Q13 3Q14 2Q14
+6%
FFB Processed (MT)
24
1,2
91
25
5,5
72
20
0,9
50
3Q13 3Q14 2Q14
+6%
CPO Sales (MT)
48
,56
8
51
,80
6
37
,90
8
3Q13 3Q14 2Q14
+7%
PK Production (MT)
11
,49
3
11
,43
6
8,3
29
3Q13 3Q14 2Q14
-0.5%
Revenue Drivers – 3Q Comparison
1,0
69
1,0
49
3Q13 3Q14
CPO Production Cost (RM/MT) A
vera
ge
18
3
19
7
3Q13 3Q14
Estate Production Cost (RM/MT)
52
54
3Q13 3Q14
Mill Manufacturing Cost (RM/MT)
*excl depreciation *excl depreciation
*excl depreciation
-2%
+8%
Higher costs attributed to younger estates
+4%
FFB Yield (MT/ha)
6.9
4
6.1
1
4.8
6
3Q13 3Q14 2Q14
KER (%)
4.7
6
4.4
7
4.1
4
3Q13 3Q14 2Q14
-0.29 ppt
OER (%)
20
.36
20
.36
20
.10
3Q13 3Q14 2Q14
-12% Prolonged dry spell throughout February - May
1st year harvesting: 7,484ha @ 20% of mature area
Lower yields attributed to younger estates, impact of dry spell
Industry-wide OER and KER downtrend
(RM ‘000) 3Q14 3Q13
Revenue 133,314 130,145
Sales of CPO 109,118 107,310
Sales of PK 15,375 12,992
Sales of FFB 8,638 5,691
Management fees - 4,152
Dividends 183 -
Cost of Sales (104,051) (91,863)
Gross Profit 29,263 38,283
Other Expenses
Admin expenses (3,880) (3,343))
Other operating expenses (1,538) (1,325)
Zakat 14 0
Finance costs (6,470) (5,748)
Other Income 1,237 1,146
Profit Before Tax 18,627 27,763
Tax (2,097) (8,634)
Profit After Tax 16,530 19,130
EBITDA 45,755 54,801
Gross Profit before amortisation 43,199 52,006
Revenue up by 2%, higher production mainly offset by lower
commodity prices
EBITDA down by 17% Gross profit excl amort down by
17%
Gross profit down by 24%
PBT down by 33%
PAT down by 14%
Costs up by 13% in line with higher production as well as younger age
profile
Overview of Profit & Loss (3Q14)
17 17
APPENDIX Area Statement
Peninsular Sabah Sarawak Indonesia Total
Oil Palm
Mature 11,771 7,056 19,588 38,415
Immature 5,417 1,514 15,070 22,001
Total planted 17,188 8,570 34,659 60,416
Total planted (%) 28% 14% 58% 100%
In-course of planting 1,244 736 2,217 4,197
Greenfield 4,710 11,380 16,090
Rubber
Immature 2,982 2,982
In-course of planting 3,200 3,200
Greenfield 3,248 3,248
Teak 5,129 5,129
Infrastructure & Unplantable 1,567 1,779 10,605 - 13,951
Total land bank 19,998 25,644 52,191 11,380 109,213
Total land bank (%) 18% 24% 48% 10% 100%
Area Statement (no change from 1Q14)
Mature Oil Palm 35%
Immature Oil Palm 20%
Immature Rubber 3%
Immature Teak 4%
In-course of planting
7%
Greenfield 18%
Infra & Others 13%
Total land bank: 109,213 Ha
>25 years (Old
Mature) 10%
20 - 25 (Old
Mature) 15%
10 - 19 (Prime
Mature) 24%
4 - 9 (Young
Mature) 51%
Average age: 13 years
Area Statement (no change from 1Q14)