VFB happening 24 maart 2018 The Connection to the world of Sustainable Tropical Agriculture
Summary SIPEF group Company profile SIPEF group Palm oil in the world SIPEF group Expansion SIPEF group Financial performance
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
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
SIPEF group Company profile
SIPEF group Planted hectares summary 31 December 2017 Palm Rubber Tea Indonesia 55 686 6 425 1 752 PNG 13 621 Ivory coast % Group share Bananas Other Total % Group share 63 863 82% 57 512 13 621 17% 13 621 690 42 732 1% 732 100% 71 865 69 307 6 425 1 752 690 42 78 216 89% 8% 2% 1% 0% 100% 64 153 5 398 1 581 690 42 71 865 5
Summary SIPEF group Company profile SIPEF group Palm oil in the world SIPEF group Expansion SIPEF group Financial performance
Palm oil in the world Population growth In the coming 40 years, mankind will have to produce more food than in the previous 10 000 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
Palm oil in the world Oil and fat consumption
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
Palm oil in the world Vegetable oils 1994/95: 93,1 million tonnes 2017: 220,0 million tonnes 20% 31% 16% 4% 37% 9% 21% 12% 24% Palm oil Soya oil Rape oil Sunflower oil Palm kernel and coconut oil Other oils/animals fats 6% 9% Palm oil Rape oil Palm kernel and coconut oil 11% Soya oil Sunflower oil Other oils/animal fats Source: oilworld.de, December 2017
Palm oil in the world Comparison to other oils Resources used per vegetable oil:
Palm oil in the world Palm oil production 2017 Palm oil production (Total of 67,1 Mn Tonnes) 3% 6% 3% 1% 4% 54% 29% Indonesia Malaysia Thailand Africa Oceania Middle & South America Oth. Countries Source: oilworld.de, December 2017
Palm oil in the world Palm oil consumption 2014/15 World consumption 0% 14% 11% 2% 2% 6% 65% Europe Russia North America South America Asia and the middle east Africa Oceania Source: oilworld.de, May 2015
Palm oil in the world Biodiesel Biodiesel 2017 (Total of 35,2 Mn tonnes) 27% 3,5 Mn ton 10% 31% 20% 7,5 Mn ton 21% 10% 12% Other oils & fats Used cooking oil Rapeseed oil Soya oil Palm oil EU Palm oil non-eu Source: oilworld.de, December 2017
2006/01 2006/13 2006/25 2006/37 2006/49 2007/09 2007/21 2007/33 2007/45 2008/06 2008/18 2008/30 2008/42 2009/03 2009/15 2009/27 2009/39 2009/51 2010/12 2010/24 2010/36 2010/48 2011/10 2011/22 2011/34 2011/46 2012/07 2012/19 2012/31 2012/43 2013/05 2013/17 2013/29 2013/41 2014/02 2014/14 2014/26 2014/38 2014/50 2015/11 2015/23 2015/35 2015/47 2016/08 2016/20 2016/32 2016/44 2017/05 2017/17 2017/29 2017/41 2018/01 SIPEF group Vegetable oil prices 1 800 Palm Oil and its main competitors (weekly prices) 1 600 1 400 1 200 1 000 800 600 400 200 0 PALM OIL (CIF N.W. Europe) SOYA OIL (FOB Dutch mill) RAPESEED OIL (FOB Dutch mill)
Palm oil in the world Sustainable palm oil 2,29 Million Ha RSPO certified production area
Summary SIPEF group Company profile SIPEF group Palm oil in the world SIPEF group Expansion SIPEF group Financial performance
SIPEF group Strategy and expansion SIPEF group= 100.000 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 18
Expansion Increase in Ha (Beneficial interest) 90.000 84 663 Ha 84 326 Ha 2022 2027 80.000 +30.4% 71 865 Ha 70.000 55 125 Ha 60.000 50.000 40 804 Ha 40.000 32 784 Ha 30.000 20.000 10.000 0 2005 2008 2016 2017 North Sum North Sum expansion Bengkulu Bengkulu expansion PNG PNG expansion Musi Rawas Dendy Marker Ivory Coast Ivory Coast expansion
Expansion Increase in CPO production (Beneficial interest) 240% 220% 200% BI hectares 180% 160% 140% 120% 100% BI production
SIPEF group South Sumatra expansion South Sumatra 21
Expansion Musi Rawas planted area up to December 2017 Cumulative Planted Area (Ha) 10000 9000 8000 7000 Hectares 6000 5000 4000 3000 2000 1000 0 AKL ARU AMR
Expansion South Sumatra planted hectares South Sumatra expansion 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 2016 2017 2018 2019 Musi Rawas own 2020 2021 2022 PT Dendymarker own 2023 2024 2025 South Sumatra plasma 2026 2027
Summary SIPEF group Company profile SIPEF group Palm oil in the world SIPEF group Expansion SIPEF group Financial performance
SIPEF group Historical evolution NFP, equity and turnover 700 600 500 Turnover In MUSD 400 Equity USD 300 200 Net financial position USD 100 Result, share of the Group 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016 2017-100 -200 *2013* Restatement for IAS41R 25
SIPEF group Dividend history Dividend History Sipef 1,80 32% 35% 32% 30% 1,60 31% 30% 30% 1,40 23% 1,20 1,00 31% 25% 24% 25% 25% 25% 22% 21% 20% 17% 1,70 0,80 1,70 1,60 1,50 1,25 0,60 1,25 1,25 1,10 0,40 0,80 10% 0,80 0,60 0,20 0,30 0,30 2004 2005 15% 5% 0,40 0,00 0% 2006 2007 2008 2009 EUR/share 2010 2011 2012 Pay-out 2013 2014 2015 2016 2017
SIPEF group 2018 prospects We expect a 9% rise in palm oil production; Prices will remain steady; 41% of palm oil production for 2018 sold at USD 741 CIF Rotterdam; Capex primarily expansion in South Sumatra and replacement capex; Sale of BDM-ASCO: Selling price set at EUR 35 million for 100%; Capital gain of approximately USD 7 million; Gross proceeds of KUSD 20 783 for further reduction of debt position.
Q&A Source : http://www.rspo.org/ and SIPEF NV 28