First Resources Limited First Resources Limited Annual General Meeting Annual General Meeting Annual General Meeting Annual General Meeting Extraordinary General Meeting Extraordinary General Meeting April 29, 2008 April 29, 2008 Singapore Singapore
Table of Contents Table of Contents Introduction Introduction 3 3 FY2007 Financial Highlights 8 Recent Developments 11 B Business Strategy i St t 13 13 2
Introduction Introduction
Overview of First Resources Overview of First Resources First Resources Limited (“First Resources” or the � “C “Company”) was established in 2004 ”) t bli h d i 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 Strong focus on the plantation segment of the palm oil f th l t ti t f th l il 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 g g p p Production (‘000 Tons) Production (‘000 Tons) 278.3 1,266.8 1,400 300 1,120.8 227.3 1,200 250 949.5 194.2 184.1 852.6 1,000 200 800 150 600 600 63 5 63.5 100 47.8 400 39.0 32.6 50 200 0 0 2004 2005 2006 2007 2004 2005 2006 2007 FFB CPO PK Extraction Rate (%) Yield per Mature Hectare (Tons) 22.23 22 23 21.80 21 80 21.85 21 85 25 25 25 25 20.03 20 26 20.26 20 30 20.30 17.25 20 20 15.62 15 15 10 10 5.07 4.59 4.07 3.59 5 5 0 0 2004 2004 2005 2005 2006 2006 2007 2007 2004 2004 2005 2005 2006 2006 2007 2007 CPO PK FFB 6
Key Strengths Key Strengths y y g g � Pure plantation play Maturity Profile � Focus on upstream segment of value chain p g � Upstream operators are biggest beneficiaries of favorable 86.4 90 CPO pricing trends 22.4 (32.7%) (Ha '000) 60 Attractive plantation maturity profile � � Weighted average age of trees is 7.2 years 30 58.1 (67.3%) � Only 60% of trees have reached peak production age 0 � No trees classified as ‘old’ by industry standards Immature Oil Palm Mature Oil Palm � Young maturity profile supports future growth in FFB production with minimal increases in costs or capital production with minimal increases in costs or capital expenditure Age-Makeup Favourable location � Old 0% � Strategically located in Riau province Young g � Ideal conditions for oil palm cultivation 11% � Mill strategically located close to plantations, reduces transportation costs, ensures quality of FFB Prime Significant landbank � 89% � Sizeable unplanted landbank located in the Riau province � Capacity to pursue aggressive future growth plans Note: Data as of 31 December 2007 7
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 Total Liabilities 2 208 9 2,208.9 2 942 3 2,942.3 33.2 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 1,558.1 billion (S$239.7 million) of cash and bank balances on hand 10
Recent Developments Recent Developments
Recent Developments Recent Developments Issues Facts and Clarifications (A) Mr. Martias’ involvement in Group Last involvement as President Commissioner of PT � Ciliandra Perkasa until April 2003 (B) Why was First Resources involved? ( ) y � � FR not involved or named in court case FR not involved or named in court case � Mr. Martias has no interest or managerial role in Group Maintained legal ownership to properties at all times � (C) Impact on operations and financials � 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 � Continue expansion of plantation footprint through new plantings Plantations 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 growth Milling � 1 new mill under construction. Target commissioning in 1Q2009 New mill will bring aggregate milling capacity to 435MT/hr � Selective exploration into other downstream businesses that could add � Downstream 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 No representation or warranty express or implied is made as to, and no reliance t ti t i li d i d t d li 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 analysis of the company’s financial or trading position or prospects. The l i f th ’ fi i l t di iti t Th information and opinions contained in these materials are provided as at the date of this presentation and are subject to change without notice. None of First Resources Limited or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever li bilit h t (i li th i ) f l h 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 www.first-resources.com 17
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