AvH analyst presentation 25 November The Connection to the world of Sustainable Tropical Agriculture

Transcription

1 AvH analyst presentation 25 November 2016 The Connection to the world of Sustainable Tropical Agriculture

2 Summary SIPEF group Company profile Palm oil in the world SIPEF group Expansion SIPEF group Productions & prices SIPEF group Financial performance Peer review

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

4 SIPEF group Company yprofile 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 yprofile

6 SIPEF group Company yprofile Indonesia

7 SIPEF group Company yprofile Papua New Guinea

8 SIPEF group Planted hectares summary 30 june 2016 Palm Rubber Tea Bananas Other Total % Group share Indonesia % PNG % Ivory coast % % % 87% 9% 3% 1% 0% 100,0% Group share

9 Summary SIPEF group Company profile Palm oil in the world SIPEF group expansion SIPEF group Productions & prices SIPEF group Financial performance Peer review

10 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

11 Palm oil in the world Meat consumption Meat consumption per capita is increasing worldwide due to the disposable income growth in developing countries. Kg of grains used to produce 1kg of: Beef Pork Poultry 7kg 4kg 2kg Any change in meat consumption patterns will have a major effect on the demand for meal, grain and corn. Source: Food and agriculture organization of the UN

12 Palm oil in the world Land input Available land 1, ,4 1,38 Hectares Bn 1,36 1,34 1, ,3 1,28 Decline: land desertification, salinization, erosion, road and urban expansion 1,26 1,24 1, ,

13 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

14 Palm oil in the world Oil and fat consumption

15 Palm oil in the world Vegetable oils Vegetable oils are oils or fats extracted from a plant. Their texture can be described as liquid, oily and fatty Most vegetable oils can either be used as cooking oil, be used for food and cosmetics or for fuel and diesel production The most common oil types include palm oil soybean oil canola The most common oil types include palm oil, soybean oil, canola (rapeseed) oil and sunflower oil

16 Palm oil in the world Oil palm plantations Oil palm plantations

17 Palm oil in the world Fresh fruit bunches Fresh fruit bunches

18 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 Rapeoil 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

19 Palm oil in the world Palm oil production 2014/15 Palm oil world production Palm oil production is primarily done in Asia: 1% 6% 1% 4% 3% Indonesia and Malaysia represent 85% of the world s palm oil production 32% 53% Oceania includes our subsidiary bidi Hargy Pl 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

20 Palm oil in the world Palm oil consumption 2014/15 World consumption Asia and the Middle east consists mainly of China, India, Indonesia, 0% 11% Malaysia and Pakistan 14% 2% 2% 6% 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

21 Palm oil in the world Advantages of Palm oil Pl Palm oil has many advantages: Highest yielding ih ildi vegetable oil crop: less than a third of the land required compared to other crops Usable in a wide range of products, from margarine and chocolate to ice cream, soaps, cosmetics and fuel India, China, Indonesia and Europe are the main consumers, while Indonesia and Ml Malaysia are the main producers > relatively close to the consumer market

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

23 Palm oil in the world Sustainable palm oil

24 Summary SIPEF group Company profile Palm oil in the world SIPEF group Expansion SIPEF group Productions & prices SIPEF group Financial performance Peer review

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

26 SIPEF group Expansion Indonesia Beneficial interest from Ha (dec 2015) to Ha Future expansion of Ha Musi Rawas and South Sumatra expansion Further increase participation interests in existing subsidiaries Both in oil palm and rubber PNG Beneficial interest from (dec 2015) to Ha Finalize palm oil expansion with an additional 1 544Ha In area where we are operating Sale of our Ha rubber plantation in PNG Ivory Coast Beneficial interest from 672 (dec 2015) to 924 Ha Additional bananas development of 252Ha

27 SIPEF group Future expansion North Sum North Sum expansion Bengkulu Bengkulu expansion PNG PNG expansion Musi Rawas Ivory Coast Ivory Coast expansion

28 SIPEF group Umbul Mas Wisesa Toton Usaha Mandiri Development of PT Umbul Mas Wisesa and PT Toton Usaha Mandiri

29 SIPEF group Umbul Mas Wisesa Toton Usaha Mandiri Historical timeline Location Planting started (Previous owner) 1996 to 2005 Land license Jul 2006 HGU applied Feb b2008 Land acquired Nov 2011 Planting completed Dec 2011 Building started Sep 2009 Mill completed Aug 2014 HGU acquired Feb 2015 RSPO certified Mar 2015 First RSPO certification on peat soil!

30 SIPEF group Umbul Mas Wisesa Toton Usaha Mandiri Area Statement 30 June 2016 Total invested amount Planted Ha Emplacement, roads, mill, Ha Total area Ha approx USD/ha Realised expected production/ha (in tonnes)* Mill construction finished August FFB CPO * New mill oil extraction rate is expected to be 24%

31 Musi Rawas Expansion: Area Map Sumatra

32 SIPEF group Musi Rawas progress October 2016 Description PT AKL PT ARU PT AMR TOTAL Izin lokasi Ha Izin lokasi Ha revised OWN Compensated Oct % Identified Ha % Potantial Ha % PLASMA Incorporated June % Identified Ha % Potantial Ha % TOTAL HA (at IDR/USD ) Compensation Oct/Ha USD Potential comp/ha USD Total average cost/ha USD Own planted Oct Own cleared Oct Plasma planted Total cleared/planted Oct

33 Musi Rawas progress 2016 Compensation Ha Cleared/Planted Ha Area YTD 2015 Oct/16 TOTAL YTD 2015 Oct/16 cleared TOTAL Planted/ compensated AKL % ARU % AMR % Plasma TOTAL %

34 Musi Rawas Compensated area up to October 2016 Cumulative Compensated Area (Ha). AKL ARU AMR 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

35 Musi Rawas Planted area up to October Cumulative Planted Area (Ha) AKL ARU AMR Hectares

36 SIPEF group MUSI RAWAS New milestone First bunches harvested din AKL in August t2016 Loading of the first fruit

37 Summary SIPEF group Company profile Palm oil in the world SIPEF group Expansion SIPEF group Productions & prices SIPEF group Financial performance Peer review

38 SIPEF group September production In Tonnes: Sept 2016 Sept 2015 YoY% Palm oil own Tolan Tiga Group ,7% UMW/TUM Group ,4% PT Agro Muko ,6% Hargy Oil Palms ,3% Ttl Total palm oil own ,2% 02% Total palm oil outgrowers ,9% Total palm oil ,3% In Tonnes: Sept 2016 Sept 2015 YoY% Total rubber ,7% Total tea ,0% Total bananas ,2%

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

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

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

42 Summary Sipef group Company profile Palm oil in the world The El Niño phenomenon SIPEF group Productions & prices SIPEF group Financial performance Peer review

43 SIPEF group Sales Gross margin Total consolidated turnover (including corporate) June 2016: KUSD June 2015: KUSD ,9% 24,1% % ,3% 18% 9% 24% 13% Palm Rubber Tea Bananas

44 SIPEF group Gross margin per product (based on internal management reporting) Gross margin (June YTD) In KUSD 2016 in % 2015 in % Palm ,0% ,8% Rubber 41 0,1% % 2,1% Tea 335 1,1% 648 2,1% Bananas 873 2,8% ,0% Corporate ,3% ,0% Total ,0% ,0%

45 SIPEF group Profit and loss statement (based on internal management reporting) Profit and loss (June YTD) In KUSD Gross Margin Services and administration Other operating income/(charges) Financial income/charges Exchange result Result before tax Tax Insurance Result after tax Effect of the IAS 41 restatement Result after tax after IAS 41 restatement

46 SIPEF group Prospects Result 800 Given the improving production outlook for the second half of the year and the sales already achieved, we are in the meantime more positive about the 2016 recurring result, which should surpass that of last year. Palm oil prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

47 SIPEF group Consolidated balance sheet Balance sheet In KUSD June 2016 Dec 2015 Biological assets bearer plants Other fixed assets Net assets held for sale Net current assets, net of cash Nt Net cash position Total net assets Shareholders equity, y,group share Non controlling interest Provisions and deferred tax liabilities Total net liabilities

48 SIPEF group Historical evolution 600,00 500,00 Turnover 400,00 300,00 Equity USD In MUSD 200,00 Net financial 100,00 position USD 0,00 100,00 Result, share of the Group 200, * restatement PT Agro Muko (decrease in turnover) 2014** restatement IAS 41R (decrease in equity & result)

49 Summary Sipef group Company profile Palm oil in the world SIPEF group expansion SIPEF group Productions & prices SIPEF group Financial performance Peer review

50 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.

51 Peer review Owned Planted Oil Palm Hectares in KHa (2015) 2014 * 2015 Var % Total ,0% Sipef 55,69 58,32 4,7% * Restated (mainly taking into account the acquisition of NBPOL by Sime Darby)

52 Peer review Age Profile : Average Age Planted Hectares (2015) Var % Average 11,7 12,1 3,6% Sipef 9,9 9,8 1,1%

53 Peer review FFB Yields MT/ha (2015) Var % Average 19,5 19,4 0,6% Sipef 22,2 22,6 1,8%

54 Peer review Extraction Rate from FFB to CPO (2015) Var % Average 22,3% 22,2% 0,4% Sipef 22,6% 22,9% 1,4%

55 Peer review CPO Yields MT/ha (2015) Var % Average 4,35 4,31 1,0% Sipef 5,01 5,17 3,2%

56 Peer review Market Cap in MUSD (July 2016) Var % Total ,7%, Sipef ,7%

57 Peer review Market Cap Evolution (Average)

58 Peer review Market Cap Evolution (Plantations)

59 Peer review Dividend Yields (Based on Average Market Cap 2015) * No dividend pay-out

60 Peer review Price Earnings Ratio (Based on Average Market Cap 2015) * Not included as irrelevant (profit close to break-even or loss for the year)

61 Peer review Net financial debt/equity Ratio (2015) * Preferential shares with fixed cumulative dividend are excluded

62