UNSP presentation office4

Management Presentation
Management Presentation
FY11 Performance and Outlook for 2012

Jakarta, 5 June 2012

Annual 
Report
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Indonesian 
CSR
Award

2011

2011

3rd Place
Non Financial
Listed Private Co.


Grand 
Platinum

Corporate 
Governance 
Award

Indonesia 
Sustainability 
Report Award

2011

2011

Most 
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Improved


Best 1st Time 
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1st Time
Reporting

Corporate Information
• Established in 1911 as a rubber plantation and processor, 
today PT Bakrie Sumatera Plantations Tbk (“UNSP”) has 
evolved to become a fully integrated and sustainable agro‐
business with three main business fields:
1. Palm oil plantation and production
2. Rubber plantation and processing
3. Oleochemical processing 
• We are strategically located in fertile and infrastructure 
We are strategically located in fertile and infrastructure
ready Sumatra island with further developments in 
Kalimantan
• Managing more than 120,000Ha of planted area with a 
h lh b l
healthy balance of 79% mature

f 79%
and 21%
d 21% immature
i
• Currently operating 13 factories with combined output 
capacity approximately 700,000MT p.a.
• Well‐recognized for strong commitment to the environment 
from the ISO 14001 and RSPO certification awarded
• Supported by over 20,000 employees, UNSP is set to 
capture the value of favorable palm oil and rubber industry
for all stakeholders

PT Bakrie Sumatera Plantations Tbk | Management Presentation  | April 2012

Sales value (Rp bn)
5,000 

4,367 

4,000 


2,000 

2 940
2,940 

2 931
2,931 

3,000 

2,325 

1,949 
1,181 

1,000 

FY06


FY07

FY08

FY09

FY10

FY11

Ebitda (Rp bn)
1,800 
1,481 

1,500 
1,158 

1,200 
884 
900 

600 

651
651 

598
598 

345 

300 

FY06

FY07

FY08

FY09


FY10

FY11

2

Corporate Milestones
1911
1986
1990
1992
2003
2004 
2005
2007 

2008
2010

2011

2012 

Established as NV Hollandsch Amerikansse Plantage 
Matschappij, a rubber plantation company
Acquired by Bakrie & Brothers 
Listed in Jakarta and Surabaya Stock Exchange
Listed in Jakarta and Surabaya Stock Exchange
Diversified into oil palm business
Renamed  to PT Bakrie Sumatera Plantations Tbk
Certified as an ISO 9001:2000 Company
Stock Split and Rights Issue I
Certified as an ISO 14001 Company
Rights Issue II &  Warant seri 1
Establishment of Agri Resources BV to further develop
Establishment of Agri Resources BV to further develop 
20,000 
oil palm plantation in Sumatra
Expanding footprint into Kalimantan through IGI Ltd.
15,000 
Rights Issue III &  Warant seri 2

10,000 
Entered the Oleochemical business
5,000 
Granted the RSPO certification for North Sumatra Unit

Collaboration with ASD Costa Rica to develop seed garden
Centennial Establishment Celebration of UNSP
Centennial Establishment
Celebration of UNSP
Celebrating 70 years establishment of Bakrie Group

PT Bakrie Sumatera Plantations Tbk | Management Presentation  | April 2012

Sales Contribution FY11
PK
8%
Rubber
26%

CPO

56%

Oleo
10%

Assets (Rp bn)
18,498  18,702 

4,311  4,700  5,072 
1,783 

FY06

FY08

FY08

FY09

FY10


FY11

3

Plantations profile
Planted Area
Palm nucleus

Location

Size (Ha)

Planted Area (Ha)

North Sumatra

16,967

140

Riau

12,200

120

West Sumatra

11,112
23,771

S. Sumatra
South Kalimantan
Total Palm Nucleus

75 5
75.5

Palm Plasma

60

52.0

20,979

40

19.1

7,171

20

92,200
,

West Sumatra

3,738

Jambi

7,700 

Total Palm Plasma
Total Palm Plasma

122.6

89.8

92.2

Palm Nucleus

Rubber Nucleus
Plasma

100
80

Jambi

124.1

0

81.4

79.2

42.8

45.8

47.1

20.1

18.8

18.9

18

19.4

18.9

12.8

13.8

16.8

14.1

14.9

11.4

FY06

FY07

FY08

FY09

FY10

FY11

N.A.D.

11 438
11,438

N. Sumatra
E. Kalimantan
Rubber Nucleus

Tot Rubber Nucleus
Total Plantation

North Sumatra

10,179

Bengkulu

5,058

Lampung

3 684
3,684
18,921
122,559

Riau

W. Kalimantan

W. Sumatra
Jambi

C. Kalimantan
C
Kalimantan
S. Kalimantan

BengkuluS. Sumatra
Lampung

As of Dec 2011

“HGU (Land Rights) as of December 2011: 154,464 Ha”
PT Bakrie Sumatera Plantations Tbk | Management Presentation  | April 2012

Jawa
Jawa 

4

Mills and Factories
Factories

End Products
End Products

Status

585,000 MT

Crude Palm Oil

Commercial Operation

N.Sum (2), Riau, W.Sum, Jambi (3), S.Sum

Rubber Factories (4)

78,940 MT

Natural Rubber

Commercial Operation

N.Sum, Bengkulu (2), Lampung

Fatty Acid FSC

45,000 MT

Fatty Acid, Glycerin

Commercial Operation

North Sumatra – Tanjung Morawa

100 000 MT
100,000 MT

F tt A id Gl
Fatty Acid, Glycerin
i

O
Operation
ti

N th S
North Sumatra –
t
K l T j
Kuala Tanjung

Fatty Alcohol I

33,000 MT

Fatty Alcohol

Operation

North Sumatra – Kuala Tanjung

Fatty Acid II

84,000 MT

Fatty Acid, Glycerin

Under construction

North Sumatra – Kuala Tanjung

Fatty Alcohol II

99,000 MT

Fatty Alcohol

Under construction

North Sumatra – Kuala Tanjung

465,000 MT

Olein, Stearin, PFAD

Under construction

North Sumatra – Kuala Tanjung

72,600 MT

Crude Palm Kernel  Oil

Preparation for Operation

North Sumatra – Kuala Tanjung

CPO Mills (8)

F tt A id I
Fatty Acid

CPO Refinery
Kernel Crusher

Output Capacity p a
Output Capacity p.a.

Location

As per Dec 2011

Fully Integrated Oil Palm Business (based on output capacity)

Refinery
Seed Garden
Collaboration 
with 
ASD Costa Rica

Plantations

Target 2016
20mn seeds 
production

Sumatera and 
Kalimantan

92,200 Ha

465,000MT 
Olein, Strearin & 
PFAD

Fatty Acid FSC
45,000MT Fatty 
Acid & Glycerin

CPO Mill
CPO Mill
585,000MT CPO

PT Bakrie Sumatera Plantations Tbk | Management Presentation  | April 2012

PK Crusher

Fatty Acid I & II

Fatty Alcohol I & II

72,600MT PKO

184,000MT 
Fatty Acid & 
Fatty
Acid &
Glycerin

132,000MT 
Fatty Alcohol
Fatty
Alcohol

5

Production Highlights – Palm oil
Factory Prod (MT)

9m10

9m11

YoY

FY10

FY11

YoY

Crude Palm Oil

176,507

235,861

34%

255,132

320,232

26%

21%

20%

21 %

21%

40,707

53,132

59,164

72,730

5%

5%

5%

5%

592,678

724,105

873,555

996,627

9.6

10.5

13.7

13.8

125,797

141,358

179,465

202,367

9.9

12.4

14.1

17.7

CPO extraction rate
Palm Kernel
Kernel extraction rate

31%

• Factory production of CPO and PK 
demonstrated strong growth at 26% and 23% 
YoY respectively boosted by higher Fresh Fruit 
Bunch (FFB) production both nucleus and 
plasma, and increase in purchased FFB volume.
• FFB Production of Nucleus and plasma grew on 
the back of improvement in fertilizer 
pp
,
g
p
,
application, maturing tree profile, also 
supported by more favorable weather.
• Significantly higher FFB third party purchase to 
optimize factory utilization. 

23%

Field Production (MT)
Nucleus 
Nucleus yield /Ha
Plasma
Plasma yield /Ha
Purchased

Planted Area (Ha)

130,735

FY11

Oil Palm Nucleus

92,200

Oil Palm Plasma

11,438

Total Planted Area
Planted Area

103 638
103,638

22%

12%

279,290 114%

171,016

14%

13%

368,055 115%

Oil Palm Nucleus Age Profile FY11
>20yrs
17‐20 1%
15%

0‐4 yrs
25%

Nucleus Oil Palm Matured (k Ha)
90
72.1

75

63.4

60
45

13‐16 
28%

30

27.7

30.8

32.1

FY07

FY08

FY09

18.3

15

9‐12 
8%

5‐8
5

23%

PT Bakrie Sumatera Plantations Tbk | Management Presentation  | April 2012

0
FY06

FY10

FY11

6

Production Highlights ‐ Rubber
Factory Prod (MT)
Natural Rubber 

9m10

9m11

YoY

FY10

FY11

YoY

22,120

21,179

‐4%

29,986

27,687

‐8%

14,678

14,819

1%

20,402

20,334

0%

1.1

1.1

1.5

1.5

Field Production (MT)
Nucleus 
Nucleus yield /Ha
Purchased

6,824

Planted Area (Ha)

FY11

Rubber Nucleus

5,987 ‐12%

11,662

7,093 ‐39%

18,921

• Rubber nucleus field production maintained at 
20,334MT due to maturing aging tree profile as 
well as ongoing rubber replanting program.
p
y
p
y,
• Despite steady nucleus field productivity, 
Rubber factory production were 27,687MT or 
slightly declined because we are implementing 
selective purchase to maintain quality.
Future growth driver: 36% of the planted
• Future growth driver: 36% of the planted 
Rubber Nucleus is still immature with age 
ranging between 0‐6 years.

Rubber Sales Vol Contribution FY11 
Cenex 
27%
Others
4%
RSS1
10%

Sir3cv
14%

PT Bakrie Sumatera Plantations Tbk | Management Presentation  | April 2012

Rubber Nucleus Age Pofile FY11
Above 20
23%

Sir10/20
45%

0‐6 yrs
y
36%
17‐20
8%

13‐16
12%

7‐12
21%

7

Oleochemical Business – Capturing the Value
• After the acquisition of Oleochemical facilities in 2010, we have become a fully‐integrated plantation 
company and shall further capture the value‐added of upstream and downstream processing activities.
• Oleochemical business serves the fast moving consumer goods industry.
Global demand for Oleochemical products are expected to grow at 3%‐4%
4% rate p.a. supported by Asia
rate p.a. supported by Asia’ss large 
large
• Global demand for Oleochemical products are expected to grow at 3%
population, income growth prospects and improving living standards.
• Our facilities can produce wide range of Oleochemical and refinery products, namely Fatty Acids, Refined 
Glycerin, Fatty Alcohols, RBD Palm Olein, RBD Palm Stearin and PFAD.
• Tanjung Morawa Fatty Acid Plant has begun commercial production in December 2010 while other facilities 
Tanjung Morawa Fatty Acid Plant has begun commercial production in December 2010 while other facilities
will follow in stages. 
• Endorsement by leading global consumer goods player via offtake agreement.
• Additional benefit from “zero percent” Export Tax for Fatty Alcohol, Fatty Acid and Refined Glycerin products.
Indonesia Export Tax
CPO

CPO

PKO

RBD Palm 
Olein

RBD Palm 
Stearin

PFAD

Fatty Acid

Fatty Alcohol

Glycerin

951 – 1,000

13.5%

13.5%

6.0%

4.0%

7.0%

0.0%

0.0%

0.0%

1,001 – 1,050

15.0%

15.0%

7.0%

5.0%

8.0%

0.0%

0.0%

0.0%

1,051 – 1,100

16.5%

16.5%

8.0%

6.0%

9.0%

0.0%

0.0%

0.0%

1,001 – 1,150

18.0%

18.0%

9.0%

7.0%

10.5%

0.0%

0.0%

0.0%

1,151 – 1,200

19.5%

19.5%

10.0%

8.0%

12.0%

0.0%

0.0%

0.0%

Finance Minister Decree No.128/PMK.011/2011

PT Bakrie Sumatera Plantations Tbk | Management Presentation  | April 2012

8

Financial Highlights – Sales Breakdown
Sales (Rp bn)
Crude Palm Oil

9m10

9m11

YoY

FY10

FY11

YoY

1,085

1,841

70%

1,818

2,442

34%

Palm Kernel

147

280

90%

230

349

52%

Rubber

663

894

35%

870

1,127

30%

0

328

n.a.

22

1,896

3,343

76%

2,940

4,367

49%

165,357

238,762

44%

230,354

331,243

44%

Palm Kernel

38,764

53,938

39%

53,573

74,595

39%

Rubber

25,348

21,435 ‐15%

30,731

28,336

‐8%

Oleochemicals
Total Sales

449 1,979%

Sales Volume (MT)
Crude Palm Oil

Oleochemicals

• FY11 Sales of Rp 4,367bn or approximately 
49% higher from last year, driven by all three 
business; Palm Oil, Rubber  and Oleochemicals.
• CPO and Palm Kernel Sales grew by 34% and 
g
y
52% YoY respectively as a result of significantly 
higher sales volume. 
• Rubber continued to benefit from high price 
environment in 2011, Sales reached Rp1,127bn
environment in 2011, Sales reached Rp1,127bn 
or grew 30% YoY. 
• Oleochemicals Sales booked Rp 449bn or 11% 
contribution to Consolidated Sales ‐ compared 
to just 1% in FY10
to just 1% in FY10.

0

28,748

n.a.

1,911

Crude Palm Oil

736

873

19%

869

840

‐3%

Palm Kernel

426

588

38%

472

533

13%

2,932

4,727

61%

3,117

4,531

45%

350 

0

1,293

n.a.

1,245

1,127

‐9%

280 

45,421 2,277%

Avg. Selling Price (USD/MT)

Rubber
Oleochemicals

CPO Sales Volume (K MT)
331 
273 

280 
230
230 

216
216 
210 

160 

140 
70 

FY06

PT Bakrie Sumatera Plantations Tbk | Management Presentation  | April 2012

FY07

FY08

FY09

FY10

FY11

9

Consolidated Financial Statement Highlights
Inc.Stat ements (Rp bn)
Sales

9m10

9m11

YoY

FY10

FY11

YoY

1,896

3,343

76%

2,940

4,367

49%

Gross Profit

783

1,236

58%

1,279

1,795

40%

Operating profit

568

828

46%

855

1,219

43%

Ebitda**

898

1016

13%

1,158

1,481

28%

Net Income

245

713

191%

809

746

‐8%

Gross Margin

41%

37%

44%

41%

Operating Margin

30%

25%

29%

28%

Ebitda Margin

47%

30%

39%

34%

Net Margin

13%

21%

28%

17%

Margins

Balance Sheets (Rp bn)
( p )
Total Assets

• Net Income Current Period Rp 746bn, driven by 
higher productivity, favorable business 
environment and a windfall from ex‐Domba Mas
debt restructuring.
• Gross Margin softened mainly due to 
Oleochemicals’ relatively modest margin and also 
impacted by higher FFB third party purchase.
Total asset maintained at Rp 18,702bn as we 
18,702bn as we
• Total asset maintained at Rp
finalized bonds refinancing in November 2011.
• FY10 Debt increased significantly due to 
consolidation of debt post acquisition of 
Oleochemical facilities ex‐Domba
facilities ex‐Domba Mas.
Mas
Net Gearing

15,063

18,686 

24%

18,498

18,702

1%

976

580 

‐41%

935

202

‐39%

150%

Plantations and FA

6,399

10,584 

65%

10,549

10,723

2%

120%

Other Assets

7 688
7,688

7 522
7,522 

‐2%
2%

7 014
7,014

7 777
7,777

0%

Debt

5,623

7,977 

49%

8,226

7,719

‐6%

Other Liabilities

1,490

1,841 

24%

1,728

1,925

‐11%

Cash and  equivalent

Equity

7,950

8,867 

12%

8,543

9,058

127%
85%

90%
61%

83%

60%
30%

58%

50%

6%

Ebitda = COGS 
= COGS – SGnA + Depreciation + Amortization
+ Depreciation + Amortization
**Ebitda

0%
FY06

PT Bakrie Sumatera Plantations Tbk | Management Presentation  | April 2012

FY07

FY08

FY09

FY10

FY11

10

Strategy and Outlook
• Palm oil and Rubber Industry Outlook
We believe the growth in global demand for palm oil and rubber will remain stable driven by increasing
consumption in developing countries as well as continued consumer interest in green‐sustainable products 
g
g
g pp y
which resulting in the thightening supply situation. 
Thus we expect commodity prices will remain favorable over the medium to long term.
• Focus to accelerate Oleochemical Business
The first Fatty Alcohol line in Kuala Tanjung will be ready for commercial production in near future. 
D l
Development of Oleochemical project will be done in stages and expected to be fully completed in
f Ol h i l
j
ill b d
i
d
d b f ll
l d i 2013.
2013
• Greenfiled delevopments
Approximately 80,000Ha of land in well‐diversified location including Muara Tebo, Sarolangun, Pangkalan 
Bun and Indragiri Hilir will be the source of future growth for palm oil and rubber plantations
• Seed Garden Project in‐collaboration with ASD Costa Rica 
To secure long term oil palm replanting program and assuring higher yields. 
• Debt Refinancing
USD150
USD150mn bond is scheduled to mature on mid July 2012. We are keen to inform all stakeholders that UNSP 
b di h d l dt
t
id J l 2012 W
k
t i f
ll t k h ld th t UNSP
has kicked start the refinancing process and expecting completion in 2Q12. 

PT Bakrie Sumatera Plantations Tbk | Management Presentation  | April 2012

11

Thank you

Visit us at w w w .ba k r ie sum a t e r a .com
Mailing address:
PT Ba k r ie Su m a t e r a Pla n t a t ion s Tbk
Corporat e Cent er
Kom pleks Rasuna Epicent rum
Bakrie Tower 18t h- 19t h floor
Jl. H.R. Rasuna Said
Jakart a 12960, I ndonesia

Cont act s:
H a di Su silo
I nvest or Relat ions
e- m ail hadi.s@bakriesum at era.com
office
+ 62 21 2994 1286- 87

Disclaim er: The inform at ion cont ained in t his docum ent is int ended only for use during t he present at ion and should not be dissem inat ed or
dist ribut ed t o part ies out side t he present at ion.
ion Any forward looking st at em ent s are based on est im at ion,
ion t he realizat ion t hereof m ay deviat e.
e
PT Bakrie Sum at era Plant at ions Tbk accept s no liabilit y what soever wit h respect t o t he use of t his docum ent or it s cont ent s.

PT Bakrie Sumatera Plantations Tbk | Management Presentation  | April 2012

12