Global Palm Resources Holdings Limited 2Q2017/1H2017 Results August 2017 1
A palm oil producer in Indonesia Plantation (Cultivation) Mill (FFB Processing) Products In West Kalimantan, Indonesia As at 30 June 2017: Total land bank: 16,079 ha Cultivated land: 13,480 ha Mature (1) area: 12,438 ha Avg FFB yield: 8.7 tons/ha (1) Mature: Oil palms > 3 years old Process FFB harvested from Nucleus; purchased from Plasma farmers and from other nearby plantations FFB processing capability: -60 tons/hr -360,000 tons/yr -1H2017: 119,820 tons processed Crude Palm Oil (CPO) Customers: Indonesian palm oil refineries and palm oil bulking facilities; commodity traders 1H2017: 25,394 tons Palm Kernel (PK) Customers: Indonesian palm kernel processing plants 1H2017: 3,955 tons 2
Salient Highlights for 2Q2017 Financial performance EBITDA at Rp13.4 billion Revenue decreased 6% to Rp100.4 billion: CPO sales revenue decreased 2% to Rp88.4 billion mainly from lower CPO average selling price and offset by increase in CPO sales volume of 201 tons PK sales revenue decreased 24% to Rp12.0 billion mainly from lower PK average selling price and decrease in PK sales volume of 12 tons Cost of sales increased 4% to Rp84.1 billion mainly due to higher sales volume of CPO Gross profit decreased 36% to Rp16.3 billion Gross profit margin decreased 7.6% point to 16.2% Production statistics Extraction rates for CPO remained stable at 21.29% and PK remained stable at 3.2% FFB yield increased to 4.2 tons/ha in 2Q2017 from 2.8 tons/ha in 2Q2016 CPO production increased to 12,396 tons in 2Q2017 from 8,543 tons in 2Q2016 PK production increased to 1,864 tons in 2Q2017 from 1,335 tons in 2Q2016 Plantation 92.3% of our palm in mature production stage 2,599 ha available for future cultivation To expand our operations via organic growth and acquisitions 3
P&L Highlights Indonesian Rupiah (Billions) 2Q2017 2Q2016 Var % 1H2017 1H2016 Var % Revenue 100.4 106.3 (6) 248.9 192.4 +29 Gross profit (GP) 16.3 25.3 (36) 61.3 36.1 +70 Profit before tax 10.4 20.2 (49) 50.4 18.9 +167 Net profit for the period 7.9 17.3 (55) 37.6 14.7 +156 Profit attributable to shareholders 7.5 16.5 (55) 35.8 14.1 +154 EBITDA 13.4 19.8 (32) 53.9 18.0 +200 GP margin (%) 16.2 23.8 (7.6 % pts) 24.6 18.8 +5.8 % pts NP margin (%) 7.8 16.3 (8.5 % pts) 15.1 7.6 +7.5 % pts EBITDA margin (%) 13.3 18.6 (5.3 % pts) 21.7 9.3 +12.4 % pts 4
Segment Review 2Q2017 2Q2016 Var % 1H2017 1H2016 Var % Sales volume (tons) CPO 11,505 11,304 +2 27,312 24,164 +13 Palm kernels 3,003 3,015 n.m. 5,003 5,024 (21) Ave. Selling Price (Rp/kg) CPO 7,685 8,004 (4) 8,202 7,060 +16 Palm kernels 3,995 5,257 (24) 4,971 4,347 +14 Revenue (Rp billion) CPO 88.4 90.5 (2) 224.0 170.6 +31 Palm kernels 12.0 15.9 (24) 24.9 21.8 +14 5
Balance Sheet Highlights Indonesian Rupiah (Billions) 30 June 17 31 Dec 16 Var (%) Total assets 735.3 764.2 (3.8) Total liabilities (93.5) (108.0) +13.5 Current ratio (times) 8.2 7.2 +13.9 Net Gearing (%) n.m. n.m. n.m. 6
Cash Flow Statement Highlights Indonesian Rupiah (Billions) 2Q2017 2Q2016 1H2017 1H2016 Net cash from operating activities 33.9 14.9 60.2 46.1 Net cash used in investing activities (2.8) (5.9) (0.2) (11.8) Net cash used in financing activities (61.1) (8.5) (63.6) (11.6) Cash on hand and in banks at the beginning of the period Effects of currency translation on cash and cash equivalents Cash on hand and in banks at the end of the period 402.9 338.2 372.9 319.5 1.9 (0.7) 5.6 (4.1) 374.9 338.1 374.9 338.1 Net change in cash on hand and in banks (29.9) 0.6 (3.6) 22.7 7
Production Highlights 8
Production Output FFB produced ('000 tons) Nucleus only 154.2 146.7 132.6 70.4 33.1 41.9 40.3 38.9 32.8 39.7 36.3 37.9 30.3 24.1 33.1 45.0 36.4 33.9 1Q14 2Q14 3Q14 4Q14 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 2Q17 1H2017 FFB yield (tons/ha) - Nucleus only 15.6 15.8 16.3 8.7 3.6 4.6 4.5 3.9 3.3 4.0 3.9 4.1 3.4 2.8 3.9 5.5 4.5 4.2 1Q14 2Q14 3Q14 4Q14 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 2Q17 1H2017 9
Production Statistics Production Output (Tons) 2Q2017 2Q2016 Var % 1H2017 1H2016 Var % CPO 12,396 8,543 +45 25,394 19,200 +32 Palm kernels 1,864 1,335 +40 3,955 3,332 +19 2Q2017 2Q2016 4,271 tons 2,736 tons 45,017 tons 32,144 tons 70,382 tons 54,460 tons FFB purchased from 3rd party FFB purchased from Plasma Total FFB produced (Nucleus) FFB purchased from 3rd party FFB purchased from Plasma Total FFB produced (Nucleus) 10
Plantation Statistics 11
Plantation statistics 1H2017 % of total 1H2016 % of total Total Planted Area (ha) 13,480 100% 13,503 100% Mature 12,438 92.3% 13,038 96.6% Immature 1,042 7.7% 465 3.4% Total land bank 16,079 ha 2,599 ha available for future cultivation 12
Age Profile @ 30 June 2017 Area cultivated First 3 years (Immature) 4-6 years (Mature) 7-18 years (Prime) Above 18 years Nucleus (ha) 1,041 1,038 1,328 5,709 9,116 Plasma (ha) 0 265 1,480 2,619 4,364 Total (ha) 1,041 1,303 2,808 8,328 13,480 % of cultivated area 7.7% 9.7% 20.8% 61.8% 100.0% Nucleus Immature, 7.6% Nucleus Mature, 7.6% Total Plasma above 18 years, 19.3% Plasma Prime, 10.9% Nucleus Prime, 9.8% Plasma Mature, 1.9% Nucleus above 18 years, 42.3% 13
Industry Outlook and Business Strategies 14
Average Selling Prices (Rp/Kg) 8,496 8,472 7,879 7,636 7,780 5,509 4,847 4,668 4,618 2,872 7,194 6,353 3,849 2,425 CPO Palm kernels 8,578 8,004 7,963 7,884 7,338 6,230 5,857 6,435 5,243 5,257 2,983 2,823 7,685 3,995 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 We expect CPO prices to be volatile given the uncertainty of the global economy and abnormal weather s impact on market dynamics 15
Strategies And Future Plans Expansion Optimisation Develop uncultivated land bank Land location permit obtained for 6,546 ha of land in West Kalimantan Actively pursue potential acquisitions targets Co-Composting plant Yielding cost savings from use of organic compost fertilisers from our plantation s EFB and POME Increase yield From plantation From mill Continue to exercise prudence in expenditures 16
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