Degroof analyst presentation February The Connection to the world of Sustainable Tropical Agriculture

Transcription

1 Degroof analyst presentation February 2018 The Connection to the world of Sustainable Tropical Agriculture

2 Summary SIPEF group Company profile SIPEF group Expansion SIPEF group Productions & prices SIPEF group Financial performance Peer review

3 SIPEF group Company profile The Connection to the world of Sustainable Tropical Agriculture Agriculture 1st segment of the supply chain - commodities Tropical Recent industrialised countries Sustainable Audited certifications Connection Publicly quoted

4 SIPEF group Company profile The Connection to the world of Sustainable Tropical Agriculture Continuous production Continuous crops Diversified in product Palm oil : basic commodity for food (and recently energy) Rubber : cyclic business - tire industry Diversified in origin Indonesia : leading producing country within Asian market PNG : export oriented with strong agronomical basics

5 SIPEF group Company profile

6 SIPEF group Company profile - Indonesia

7 SIPEF group Company profile Papua New Guinea

8 SIPEF group Planted hectares summary 31 December 2017 Palm Rubber Tea Bananas Other Total % Group share Indonesia % PNG % Ivory coast % % % 89% 8% 2% 1% 0% 100% Group share

9 Summary SIPEF group Company profile SIPEF group - Expansion SIPEF group Productions & prices SIPEF group Financial performance Peer review

10 SIPEF group Strategy and expansion SIPEF group= Ha planted (group share) Focus on core-business Palmoil Rubber Bananas Tea Indonesia Papua New Guinea Focus on Sustainable Agriculture (RSPO) Expansion of existing activities Acquisition of new investments Balanced leverage 9

11 SIPEF group Strategy and expansion Indonesia Beneficial interest from Ha (dec 2017) to Ha (by 2027) Further expansion to Ha Musi Rawas/South Sumatra expansion Further expansion of Ha in PT Dendymarker to a total of Ha Both in oil palm and rubber PNG Beneficial interest from (dec 2016) to Ha (by 2027) Finalize palm oil expansion with an additional Ha In area where we are operating Ivory Coast Beneficial interest from 732 (dec 2016) to 984 Ha (by 2027) Additional bananas development of 252 Ha 10

12 Expansion Increase in Ha (Beneficial interest) Ha Ha % Ha Ha Ha Ha North Sum North Sum expansion Bengkulu Bengkulu expansion PNG PNG expansion Musi Rawas Dendy Marker Ivory Coast Ivory Coast expansion

13 SIPEF group Musi Rawas expansion Sumatra 12

14 SIPEF group Musi Rawas progress December 2017 Isin Locasi Own Plasma Total Compensated/acquired % To do % Total potential % Own Plasma Total Planted/cleared % To do % Total potential %

15 Expansion Musi Rawas compensated area December 2017 okt/11 dec/11 feb/12 apr/12 jun/12 aug/12 okt/12 dec/12 feb/13 apr/13 jun/13 aug/13 okt/13 dec/13 feb/14 apr/14 jun/14 aug/14 okt/14 dec/14 feb/15 apr/15 jun/15 aug/15 okt/15 dec/15 feb/16 apr/16 jun/16 aug/16 okt/16 dec/16 feb/17 apr/17 jun/17 aug/17 okt/17 dec/17 Cumulative Compensated Area (Ha). AKL ARU AMR 12000, , , , , ,00 0,00

16 Hectares Expansion Musi Rawas planted area up to December Cumulative Planted Area (Ha) AKL ARU AMR

17 Summary SIPEF group Company profile SIPEF group Expansion SIPEF group Productions & prices SIPEF group Financial performance Peer review

18 SIPEF group December production In Tonnes: Dec 2017 Dec 2016 YoY% Palm oil own - Tolan Tiga Group ,8% - UMW/TUM Group ,5% - PT Agro Muko ,5% - PT Dendymarker Hargy Oil Palms ,6% Total palm oil own ,6% Total palm oil outgrowers ,7% Total palm oil ,2% In Tonnes: Dec 2017 Dec 2016 YoY% Total rubber ,0% Total tea ,3% Total bananas ,1%

19 SIPEF group Vegetable oil prices 2006/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / Palm Oil and its main competitors (weekly prices) PALM OIL (CIF N.W. Europe) SOYA OIL (FOB Dutch mill) RAPESEED OIL (FOB Dutch mill)

20 SIPEF group CPO price - CIF Rotterdam USD 850 CPO prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

21 SIPEF group Rubber price FOB Malaysia - USD 3000 Rubber prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

22 SIPEF group Tea prices FOB Indonesia - USD 3300 Tea prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

23 Palm oil in the world Population growth In the coming 40 years, mankind will have to produce more food than in the previous years put together Population growth will have a huge impact on future food demands Rising middle class is causing diet changes in developing countries Agricultural land is increasingly becoming scarcer

24 Palm oil in the world Oil and fat consumption

25 Palm oil in the world Land input Increased demand for meat/fat/processed foods Increased demand for biofuel Decreasing Agricultural land per capita Disposable income growth in developing countries

26 Palm oil in the world Vegetable oils 2014/15: 201,7 million tonnes 1994/95: 93,1 million tonnes 21% 30% 16% 5% 37% 8% 21% 13% 23% 6% 9% 11% Palm oil Rape oil Palm kernel and coconut oil Soya oil Sunflower oil Other oils/animal fats Palm oil Rape oil Palm kernel and coconut oil Soya oil Sunflower oil Other oils/animal fats Source: oilworld.de, May 2015

27 Palm oil in the world Comparison to other oils Resources used per vegetable oil:

28 Palm oil in the world Palm oil production 2014/15 - Palm oil world production 1% 6% 1% 4% 3% Palm oil production is primarily done in Asia: Indonesia and Malaysia represent 85% of the world s palm oil production 32% 53% Oceania includes our subsidiary Hargy Palm Oils Ltd Total Sipef production represents 0,44% of the world production. Indonesia Malaysia Thailand Africa Oceania South America Oth countries Source: oilworld.de, May 2015

29 Palm oil in the world Palm oil consumption 2014/15 World consumption 0% 11% 14% 2% 2% 6% Asia and the Middle-east consists mainly of China, India, Indonesia, Malaysia and Pakistan Africa consists mainly of Nigeria, Egypt, Ghana and Kenya Very limited CPO consumption in North and South America 65% Europe Russia North America South America Asia and the middle east Africa Oceania Source: oilworld.de, May 2015

30 Palm oil in the world Sustainable palm oil 2,29 Million Ha RSPO certified production area

31 Summary SIPEF group Company profile SIPEF group Expansion SIPEF group Productions & prices SIPEF group Financial performance Peer review

32 SIPEF group Sales Consolidated gross margin Total consolidated turnover (including corporate) December 2017: KUSD December 2016: KUSD ,8% ,6% ,3% 20,7% ,9% ,9% 23,2% 20,8% Palm Rubber Tea Bananas 2016 Sales 2016 Gross Margin 2017 Sales 2017 Gross Margin

33 SIPEF group Gross profit per product Gross profit (December YTD) In KUSD 2017 in % 2016 in % Palm ,9% ,6% Rubber ,8% 48 0,1% Tea ,9% 842 1,1% Bananas ,2% ,8% Corporate and others ,2% ,4% Total ,0% ,0%

34 SIPEF group Profit and loss statement Profit and loss (December YTD) In KUSD (management presentation) Gross Profit Services and administration Other operating income/(charges) Financial income Financial charges Exchange result Profit before tax Tax Profit after tax Share of associates and JV s Result from continuing operations Remeasurement gain PT Agro Muko acquisition Profit for the period Share of the group Share of the group before remeasurement gain PT AM

35 SIPEF group Financial performance Consolidated balance sheet Consolidated Balance Sheet of the Sipef group is strongly impacted by 4 elements: Capital increase 24/05/2017 of 97,1 MUSD Reclassification of land rights from intangible to tangible fixed assets Acquisition of PT Agro Muko Acquisition of PT Dendymarker (provisional Purchase Price Allocation )

36 SIPEF group Financial performance Consolidated balance sheet Impact of acquisitions PT AM PT DIL Total Goodwill Biological assets Other non current assets Cash Other current assets Total assets P&L (remeasurement gain) Other equity Deferred tax liabilities Other non current liabilities Current liabilities Purchase price Total liabilities

37 SIPEF group Consolidated balance sheet Balance sheet In KUSD (condensed) Dec 2017 Dec 2016 Goodwill Biological assets- bearer plants Other fixed assets Investments in associates Net assets held for sale Net current assets, net of cash Net cash position Total net assets Shareholders equity, group share Non controlling interest Provisions and deferred tax liabilities Total net liabilities

38 SIPEF group Consolidated cash flow Cash Flow In KUSD (management presentation) Cash flow from operating activities Change in net working capital Income taxes paid Cash flow from operating activities after tax Acquisitions intangible and tangible assets Dividends received from associated companies Sales of PP&E and financial assets Recurring free cash flow Acquisition financial assets Equity transactions with non-controlling parties Capital Increase Other financing activities Net increase in investments, cash and cash equivalents

39 SIPEF group Split acquisition of financial assets PT AM PT DIL Total Total acquisition price Advance paid in Available liquidity Net impact Presentation in cash flow - Acquisition financial assets Equity transactions with NCI Net impact

40 SIPEF group Dividend history Dividend History Sipef 1,80 1,60 32% 32% 30% 31% 31% 30% 35% 30% 1,40 1,20 23% 22% 24% 21% 25% 25% 25% 25% 1,00 17% 20% 0,80 1,50 1,70 1,70 1,60 15% 0,60 1,10 1,25 1,25 1,25 10% 0,40 0,80 0,80 0,20 0,30 0,30 0,40 0,60 5% 0, EUR/share Pay-out 0%

41 SIPEF group Historical evolution NFP, equity and turnover In MUSD Turnover 300 Equity USD Net financial position USD Result, share of the Group * *2013* Restatement for IAS41R 40

42 SIPEF group 2018 prospects We maintain the expected 9% total rise in annual palm oil production for the SIPEF group; We are positive that prices will remain steady, certainly for the first half of the year; 41% of the expected palm oil production for 2018 was sold at an average price of USD 741 per tonne CIF Rotterdam, premiums included; Capex for 2018 will be primarily expansion in South Sumatra and replacement capex; The acquisition price for 100% of the shares of BDM-ASCO was set at EUR 35 million. SIPEF will realise a gain of approximately USD 7 million. Gross proceeds of KUSD will contribute to the further reduction in the debt position of the Sipef Group.

43 Summary SIPEF group Company profile SIPEF group Expansion SIPEF group Productions & prices SIPEF group Financial performance Peer review

44 Peer review Disclaimer The information contained in this section is provided for your general information only and is not designed nor intended to offer anything more than information only. The information with respect to the companies included in the Peer Review was retrieved from publicly available information being annual reports and company websites on the one hand and from analyst reports we received on the other hand. In some cases we had to give our own interpretation to the available information in order to get comparable indicators. As a consequence of using different sources combined with giving our own interpretation to the available information, the information may not always be correct and SIPEF does not accept any liability for loss and damage that may arise from relying upon this information. 43

45 Peer review Owned Planted Oil Palm Hectares in KHa (2016) Sime Darby 603 Golden Agri-Resources 386 Felda Global Ventures 341 Salim Ivomas Pratama Wilmar International Astra Agro Lestari Kuala Lumpur Kepong IOI Corporation First Resources Eagle High Plantations Genting Plantations Bumitama Plantation Integrated Sipef London Sumatra Indon 95 Socfinaf 86 Sampoerna Agro 82 Anglo Eastern Plantations 64 SIPEF 61 R.E.A. Holdings Socfinasia Var % Total ,2% MP Evans 27 Sipef 58,32 60,64 4,0% 44

46 Peer review Age Profile : Average Age Planted Hectares (2016) Golden Agri-Resources 15,0 Felda Global Ventures 14,5 Socfinasia 14,3 Astra Agro Lestari 14,1 Salim Ivomas Pratama 14,0 London Sumatra Indon 14,0 IOI Corporation Sime Darby 13,6 13,2 Plantation Sampoerna Agro 12,5 Integrated Wilmar International 12,0 Kuala Lumpur Kepong 12,0 Sipef R.E.A. Holdings 10,4 Socfinaf 10,0 Genting Plantations 10,0 First Resources 10,0 SIPEF 9,9 Anglo Eastern Plantations 9,9 Bumitama MP Evans Eagle High Plantations 7,5 7,4 8, Var % Average 11,6 11,7 1,2% Sipef 9,8 9,9 0,8% 45

47 Peer review FFB Yields MT/ha (2016) SIPEF Socfinasia IOI Corporation 21,4 22,4 22,2 Kuala Lumpur Kepong MP Evans Sime Darby Golden Agri-Resources Astra Agro Lestari Wilmar International Genting Plantations First Resources Anglo Eastern Plantations 19,8 19,1 18,8 18,8 18,4 18,4 17,5 17,3 16,9 Plantation Integrated Sipef R.E.A. Holdings London Sumatra Indon Salim Ivomas Pratama Bumitama Felda Global Ventures 14,9 14,7 14,7 14,6 14,5 Socfinaf Sampoerna Agro Eagle High Plantations 8,8 12,9 12, Var % Average 19,3 16,9-12,4% Sipef 22,6 22,4-1,0% 46

48 Peer review Extraction Rate from FFB to CPO (2016) MP Evans Eagle High Plantations 23,8% 24,1% SIPEF Socfinasia R.E.A. Holdings Bumitama First Resources London Sumatra Indon Kuala Lumpur Kepong Golden Agri-Resources Socfinaf Sime Darby Salim Ivomas Pratama Genting Plantations IOI Corporation 23,0% 22,9% 22,8% 22,7% 22,5% 22,5% 22,3% 22,2% 22,0% 21,9% 21,8% 21,5% 21,5% Plantation Integrated Sipef Astra Agro Lestari 21,0% Anglo Eastern Plantations 20,9% Sampoerna Agro Felda Global Ventures Wilmar International 20,8% 20,7% 20,4% Var % Average 22,2% 22,1% -0,6% Sipef 22,9% 23,0% 0,5% 47

49 Peer review CPO Yields MT/ha (2016) SIPEF Socfinasia 5,14 5,09 IOI Corporation MP Evans Kuala Lumpur Kepong 4,42 4,60 4,59 Golden Agri-Resources 4,16 Sime Darby 4,12 First Resources 3,89 Astra Agro Lestari 3,85 Plantation Genting Plantations 3,76 Wilmar International 3,74 Integrated Anglo Eastern Plantations 3,54 R.E.A. Holdings 3,39 Sipef Bumitama 3,31 London Sumatra Indon 3,31 Salim Ivomas Pratama 3,19 Felda Global Ventures 3,00 Socfinaf Sampoerna Agro 2,84 2, Var % Average 4,29 3,74-12,9% Eagle High Plantations 2,10 Sipef 5,17 5,14-0,5% 48

50 Peer review Market Cap in MUSD (average over the fiscal year) Wilmar International Sime Darby IOI Corporation Kuala Lumpur Kepong Golden Agri-Resources Astra Agro Lestari First Resources Genting Plantations Felda Global Ventures Bumitama London Sumatra Indon Salim Ivomas Pratama Eagle High Plantations SIPEF Socfinasia MP Evans Socfinaf Plantation Integrated Sipef Anglo Eastern Plantations Sampoerna Agro R.E.A. Holdings * Restated: calculation of market cap based on average stock exchange of the fiscal year at the average exchange rate of the fiscal year 2015* 2016 Var % Total ,0% Sipef ,9% 49

51 Peer review Dividend Yields (Based on Average Market Cap 2016) Socfinasia MP Evans Sime Darby Astra Agro Lestari SIPEF London Sumatra Indon Salim Ivomas Pratama Kuala Lumpur Kepong Golden Agri-Resources Wilmar International Bumitama Genting Plantations IOI Corporation First Resources Sampoerna Agro Socfinaf Anglo Eastern Plantations Felda Global Ventures R.E.A. Holdings * 0,0% Eagle High Plantations * 0,0% 0,6% 0,6% 0,6% 2,7% 2,6% 2,3% 2,2% 2,2% 2,1% 2,0% 2,0% 2,0% 1,7% 1,3% 1,3% 3,4% 4,4% 4,7% Plantation Integrated Sipef * No dividend pay-out 50

52 Peer review Price Earnings Ratio (Based on Average Market Cap 2016) Socfinaf IOI Corporation Genting Plantations 23,3 Sime Darby 20,7 London Sumatra Indon 17,7 Socfinasia 16,6 First Resources 16,5 Kuala Lumpur Kepong 15,5 Wilmar International 15,3 Astra Agro Lestari 15,0 Sampoerna Agro 14,1 Salim Ivomas Pratama 13,2 Bumitama 13,0 SIPEF 12,0 MP Evans 10,9 Golden Agri-Resources 8,8 Anglo Eastern Plantations 7,6 Felda Global Ventures * 0,0 R.E.A. Holdings * 0,0 Eagle High Plantations * 0,0 * Not included as irrelevant (profit close to break-even or loss for the year) 46,9 52,2 Plantation Integrated Sipef 51

53 Peer review Net financial debt/equity Ratio (2016) Eagle High Plantations IOI Corporation Wilmar International Socfinaf Golden Agri-Resources R.E.A. Holdings Sampoerna Agro Bumitama Felda Global Ventures Salim Ivomas Pratama Sime Darby Kuala Lumpur Kepong Genting Plantations First Resources Astra Agro Lestari SIPEF London Sumatra Indon Anglo Eastern Plantations MP Evans Socfinasia 45,5% 40,6% 34,5% 31,6% 21,8% 20,5% 20,3% 9,5% -14,9% -18,9% -21,9% -32,5% 77,7% 73,0% 71,1% 66,3% 62,3% 57,8% 91,8% 133,3% Plantation Integrated Sipef 52

54 Questions