New Britain Palm Oil Ltd 2013

Transcription

1 New Britain 2013

2 New Britain 2013

3 February 2013 New Britain 2013 Preliminary Results 2012

4 Facilities on New Britain

5 Introduction New Britain 2013 Challenging year for the Group Profitability compared to FY2011 impacted by several factors high rainfall leading to issues collecting fruit higher water content and therefore lower extraction rates appreciation of local currency (Kina) reduction in global crude palm oil / palm kernel oil prices delay in sugar harvesting Key capex programme continued including construction of palm kernel crushing facilities, expansion of the Liverpool refinery and new/replanting of c. 6,000 ha oil palm 3

6 NBPOL plantation in West New Britain, PNG

7 Highlights New Britain 2012 Year Ended 31 December FFB processed (tonnes) 2,273,081 2,421,003 CPO / PKO produced (tonnes) 545, ,477 Average CPO price achieved ($ / tonne) 1,062 1,108 Year Ended 31 December Revenue ($m) EBITDA* ($m) Profit Before Tax* ($m) Earnings Per Share* (US ) *Excluding IAS 41 adjustments. Note: 2012 figures unaudited. 5

8 Nursery estates in New Britain

9 Highlights New Britain 2013 Processed 684,594 tonnes of FFB from smallholders (2011: 682,373), representing 30.1% of total Group FFB processed (2011: 28.2%) Palm product extraction rates decreased to 27.59% (2011: 28.21%) Crude palm oil extraction rate decreased to 22.35% (2011: 22.79%) Further progress on KPOL integration: FFB yields increased by 8% to 25.8 tonnes/ha (2011: 23.9 tonnes/ha) significant replanting of older matured estates Strong seed sales by Dami Oil Palm Research achieving year-on-year sales growth of 25% Sugar revenues of US$55.8m, an increase of 9.6% on 2011 Liverpool refinery utilisation at or close 100% of effective nameplate capacity for H and strong growth in packaged product customer base Significant progress on Group s cost optimisation and efficiency review At the end of 2012 forward sales of c. 94,000 tonnes of 2013 CPO production made at an average price of $893/tonne (as at 20 February 2013 forward sales were c. 123,500 tonnes at an average of $890/tonne) Acquisition of Vitroplant Orangerie Bay Limited for US$4.4m in cash in July 2012 Interim dividend of $0.15 per share was paid in November 2012; no final dividend is being proposed 7 7

10 NBPOL and RAIL maintain a stock of cattle utilising Palm Kernel Expeller, a high protein co-product of palm oil production

11 US$/MT CIF Prices (US$/MT) NBPO.LN (GBP) Price Performance NBPOL share price, CPO, PKO CPO and PKO prices traded firmer during the first few months of 2012 supported mainly by supply tightness in the global vegetable oil market (especially soy bean oil) Market turned bearish in Q as the Euro-zone financial crisis impacted global economic sentiment and demand for palm products Fall in PKO and other lauric oil prices was significant in 2012 Average PKO prices fell 32.6% to US$1,110/tonne (against US$1,648/tonne in 2011) NBPOL Share Price and Palm Product Prices New Britain PKO currently trading close to parity with CPO (historical premium over CPO is ~20%) Palm oil expected to increase its share of the vegetable oil market as relative pricing dynamics incentivise food manufacturers to switch to palm oil Current soy bean oil premium is ~US$300/tonne, well above its five-year average premium of ~$100/tonne CPO CIF (US$/MT) CPKO CIF (US$/MT) NBPO.LN (GBP) Soy Bean Oil Premium Over Palm Oil (RBD Olein) Source: Bloomberg, Reuters 9

12 Oil palm nursery

13 Y-on-Y change in consumption (MT, m) Total veg oil consumption (MT, m) Global Edible Vegetable Oil Market Strong production growth and favourable growing conditions in the major palm oil regions, particularly in the 2 nd half of the year Global Vegetable Oil Stocks-to-Use Ratio 13.00% 12.00% New Britain 2013 Seasonal production peaks in Indonesia and Malaysia in H drove up stocks and weakened prices Malaysia started 2013 with record opening palm oil stocks of 2.63 million tonnes 27.7% increase from 2011 levels driven by increased palm oil imports (+6.5%) and lower exports (-2.4%) 11.00% 10.00% 9.00% 8.00% 7.00% 6.00% Limited expansion of planted area in major producing countries, however seed sales remain strong Demand growth remained strong in 2012 Palm oil consumption growth was ~7% Total vegetable oil consumption growth was ~4%, driven mainly by growth in food and feed usage Vegetable Oil Consumption /01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/ Y-on-Y change F&F use Total Consumption (MT, m) Y-on-Y change in Industrial use Source: USDA 11

14 Grassland and pasture available for planting in the Ramu Valley, significant expansion potential

15 Balance Sheet Marginal increase in total borrowings due to increased working capital requirements across the Group New Britain 2013 (USDm) Total Debt: US$314.7m Total Debt: US$326.7m Long Term Debt - amortising Long Term Debt - non-amortising Short Term Financing - Liverpool RAMU Short Term Trade Finance 13

16 CPO being loaded at West New Britain, PNG CPO arrival storage tanks at New Britain Oils, UK

17 New Britain Oils The first palm oil provider able to guarantee fully traceable, sustainable palm oil direct from the plantation to the EU consumer Key contracts with well known UK and EU brands Captures greater margin share for NBPOL World s first dedicated sustainable bakery foodstuffs production facility now operational Liverpool Refinery Effective Capacity Utilisation 120% 100% 80% 60% 40% 20% New Britain 2013 Liverpool refinery utilisation at or close 100% of effective nameplate capacity for H A second deodorizer was installed in September 2012 to enable refining capacity to be doubled to 300,000 MT per annum Final commissioning expected in Q % May'10 Jul Sep Nov Jan'11 Mar May July Sep Nov Jan'12 Mar May July Sep Nov Number of Customers Significant growth in packaged product customer base Products include frying oil, cake margarine, pastry margarine and shortening 30 Bulk Customers Packed Customers May'10 Jul Sep Nov Jan'11 Mar May July Sep Nov Jan'12 Mar May July Sep Nov JAN'13 15

18 Harvesting techniques Pollinisation and breeding programme

19 Corporate Events New Britain 2013 NBPOL s first LTIP was approved by shareholders in May 2012 Setting performance criteria for management and key staff Acquisition of remaining 20% of KPOL by issuance of new NBPOL shares in April 2012 Acquisition of Vitroplant Orangerie Bay Limited for US$4.4m in cash in July 2012, giving NBPOL potentially up to c.11,000 hectares of new land for oil palm planting 17

20 Palm oil shipment from PNG into the UK refinery

21 NBPOL Location New Britain 2013 New Britain Oils Commissioned in March 2010, the first fully segregated and traceable sustainable palm oil refinery in the UK. New bakery fats plant now operational PAPUANEWGUINEA Lae KPOL, Poliamba - acquired in April ,536 hectares oil palm Kimbe NEWBRITAIN NEW IRELAND Main area of NBPOL operation 36,126 hectares oil palm GPPOL - acquired in April ,318 hectares oil palm c. 78,000 total hectares of managed oil palm plantations An additional c.42,000 hectares cultivated by smallholders RAIL - acquired in Oct ,685 hectares oil palm 7,720 hectares sugar cane 8,888 hectares pasture KPOL, Higaturu - acquired in April ,533 hectares oil palm KPOL, Milne Bay - acquired in April ,134 hectares oil palm Orangerie Bay Plantations - acquired in July 2012 c. 5,351 hectares to be planted with oil palm SOLOMON ISLANDS 19

22 Sterilisation of palm fruits, key first stage processing

23 NBPOL Today New Britain 2013 Plantations Land bank 134,500 ha 77,518 hectares under NBPOL cultivation with respect to oil palm More than 42,000 mature hectares cultivated by small-holders supplying NBPOL Milling and Refining 12 oil mills in Group 2 refineries Special fractionation plant completed for Ferrero Bakery fats plant in the UK Infrastructure c.80,000 tonnes / oil storage capacity Trucking transport fleet Housing Two new methane capture facilities nearing completion Export terminals Revenue contribution Palm Oil Sales Seed Sales Sugar sales Cattle Production Highly respected plant breeding research and development Important for success of wider business Growing customer base around the world NBPOL is one of the world s largest private seed producers 9,282 hectares of cattle grazing land Integrated with the palm oil plantation Important for the protein constrained local community >22,000 head of cattle RAIL 1 sugar mill 1 ethanol plant 7,731 hectares sugar cane 21

24 Replanting programme in process on West New Britain, PNG

25 Sustainability All units and supply chains certified as fully sustainable and traceable, including all smallholders New Britain 2012 With its UK refinery NBPOL has a unique fully sustainable and traceable supply chain to the EU NBPOL was instrumental in developing the Roundtable on Sustainable Palm Oil and continues to play a pivotal role as an executive board member ( In 2012 NBPOL was named as sector leader (agricultural products) in the Forest Footprint Disclosure (FFD) Annual Review GreenPeace ranks NBPOL in top 3 palm oil producers for its work on deforestation World Economic Forum (WEF) identified NBPOL as one of 16 global sustainability champions of 2011 and in 2012 invited NBPOL to join the Global Agenda Council on Biodiversity and Natural Capital In 2011 NBPO published its inaugural Carbon Footprint Report outlining its zero net carbon emissions commitment Forest Footprint Disclosure Leaders by Sector Agricultural Products New Britain Food and Staples Retailing Sainsbury s Supermarkets Ltd General Retailers Marks and Spencer plc Media British Sky Broadcasting Oil & Gas Greenergy International Ltd. Paper & Forest Products Mondi PLC Personal & Household Products L Oréal Textiles, Apparel & Luxury Goods PrimeAsia Leather Corporation Travel & Leisure British Airways Utilities Drax Group Packaged Foods & Meats Marfrig Group and Unilever 23

26 NBPOL newly planted estates

27 Outlook New Britain Palm oil prices remain depressed on the overhang of palm oil stocks in Malaysia, however prices have improved in recent months with the seasonal decline in Malaysian and Indonesian production Expectation of normalised FFB collection, production and extraction in 2013 Operational measures to better cope with the wet season (January to April) January 2013 rainfall was 57% higher than recorded in January 2012 resulting in a 5% drop in FFB production (vs 2012), however rainfall patterns in February have been in line with historical averages Ongoing cost saving initiatives to address impact of stronger Kina on margins (e.g. reduced fertiliser and oil freight costs have been locked in for 2013; reduction in G&A expenses and overheads; electricity cost savings through CDM methane projects) New kernel crushing plants will increase oil volume Expansion of Liverpool refinery with the addition of a second deodoriser to double capacity to 300,000 tonnes by Q

28 Milling in progress

29 Tonnes Hectares Tonnes FFB Historical Operational Indicators 3,000,000 Growth in Group Fresh Fruit Bunch (FFB) volume New Britain ,000 Growth in Oil Palm Plantations 2,500,000 2,000,000 80,000 1,500,000 70,000 1,000, ,000 60, ,000 40, ,000 Growth in Palm Oil Produced 600,000 30, ,000 20,000 10, , , , ,

30 The controlled cultivation of oil palms in the nursery contributes to NBPOL s successful replanting programme and relatively young oil palm age profile

31 Palm Oil A vegetable oil used extensively in Asian and EU food markets and personal healthcare products The most productive vegetable oil High barriers to entry: significant capex requirement and logistic support plus 3-4 years for a new plantation to yield fruit High competition for suitable land New Britain 2013 NBPOL Example Customers Ferrero Jordans Wilmar United Biscuits c.90% of NBPOL s output is sold into the EU in US$ contracts Indicative oil yields Palm Oil (NBPOL) Palm Oil (World Average) Rape Sun Soya Source: USDA/NBPOL Globally achieved Oil yield (tonnes / Ha) Crop composition of land used globally to produce vegetable oils Composition of global vegetable oil production 6% Palm Rape Sunseed 15% 17% 62% 36% 37% Soya 11% 16% Source: USDA 29

32 Disclaimer This document, which is personal to the recipient ( Recipient ), has been prepared by New Britain Palm Oil Limited (the Company ). This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company or any other entity. Prospective investors are required to make their own independent investigations and appraisals before taking any investment decision. In making this document available to the Recipient the Company is not agreeing to take or refrain from taking any action in future or to undertake, or cease to undertake, any activity. Any recipient who is in any doubt about the matters referred to herein should take advice from an authorised person specialising in advising on matters of this kind. No representation or warranty, express or implied, is given by or on behalf of the Company or any of such persons directors, officers or employees or any other person as to the accuracy, fairness of the presentation, completeness of the information or opinions contained in this document. No liability whatsoever is accepted by the Company or any of such persons members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. This document may not be reproduced, copied, redistributed or passed on, directly or indirectly, whether in hard copy or by , to any other person or published, in whole or in part, for any purpose. This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or any jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Neither this document nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions or distributed, directly or indirectly, in the United States of America, its territories or possessions where to do so would contravene any law or regulation which would require any registration or licensing within such jurisdiction. Neither this document nor any copy of it may be taken or transmitted into Canada, Australia or Japan or to Canadian, Australian or Japanese persons or to any securities analyst or other person in any of those jurisdictions. Any failure to comply with this restriction may constitute a violation of United States, Canadian, Australian or Japanese securities law. The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Certain statements, beliefs and opinions in this document are forward-looking, which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or including the words targets, believes, expects, aims, intends, may, anticipates, would, could or similar expressions or the negative thereof. These statements reflect the Company s or, as appropriate, the Company s directors current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Such forward-looking statements are based on numerous assumptions regarding present and future business strategies. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward looking statements, which speak only as of the date of this document. February 2013

33 New Britain 2013

34 New Britain 2013 Phone: +44 (0)