SIME DARBY PLANTATION BERHAD CGS-CIMB 12th Annual Malaysia Corporate Day 2020 7 January 2020
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Table of Contents S E C T I O N PA G E 1 Company Overview 4 2 Key Investment Highlights 9 3 Business Strategies & Future Plans 26 4 Industry Outlook 37 5 Financial Overview 42 6 Financial Performance in Q3 FY2019 51 7 Appendix 66
Company Overview
5 Business Overview Integrated Plantation Company Involved in the Entire Palm Oil Value Chain Upstream Downstream Others Oil palm estate Mill Refinery Food application High-yielding Renewables genome seeds Oil palm, rubber & sugarcane estates Bulk and refined oils & fats R&D ▪ Developing, cultivating and managing ▪ Production and sales of refined oils ▪ Focused on yield and productivity oil palm, rubber and sugarcane and fats (which includes specialty and improvements, increasing revenue plantation estates end-user oils and fats) streams and developing sustainable practices while pursuing innovative strategies Milling of FFB and processing & sales Biodiesel products & derivatives, and oleochemicals* ▪ Milling of FFB into CPO and PK Renewables business ▪ Production and sales of biodiesel ▪ Processing and sales of rubber and ▪ Development of green technology products and derivatives, as well as sugarcane oleochemicals* and renewable energy which includes biogas and composting Others ▪ Cattle rearing and beef production Agribusiness ▪ Provision of agriculture products and Hectarage as at 31 December 2018 services Rubber 14,725 ha of rubber estates Cattle 9,560 ha of grazing pasture Sugarcane 5,613 ha of planted area Note: * The oleochemicals business has been classified as a discontinuing operation
6 Snapshot of Oil Palm Plantation Operational Statistics As at 31 December 2018 Liberia # Malaysia Indonesia PNG & SI Total unless otherwise stated Total oil palm planted 304,731 201,072 10,263 91,080 607,146 area(ha) 248,964 158,791 9,975 79,125 496,855 Mature area (ha) 3% 9% 9% 5% 11% 18% 18% 13% 21% Palm tree age profile & 13% 16% average tree age 22% (Years) 11.8 yrs 13.6 yrs 5.4 yrs 11.8 yrs 12.3 yrs 24% 13% 21% 22% 38% <3 yrs 4-8 yrs 9-18 yrs 45% 17% 35% 19-22 yrs >22 yrs 30% 97% FFB production* 5.373 2.892 0.086 1.980 10.331 (mn MT/year) CPO production* (Total) 1.332 0.787 0.020 0.571 2.710 (mn MT/year) PK production* (Total) 0.335 0.178 0.005 0.148 0.665 (mn MT/year) 21.9 18.1 8.7 25.1 20.9 FFB yield* (MT/ha) 20.8 21.1 21.1 22.4 21.2 OER* (%) KER* (%) 5.2 4.8 5.5 5.8 5.2 Average CPO selling price* 2,262 1,920 1,989 2,412 2,184 (RM/MT) Average PK selling price* 1,780 1,376 481 - 1,678 (RM/MT) Note: * For the January – December 2018 period # The Liberian operations have been classified as a discontinuing operation
7 Snapshot of Downstream Operations 3.8 million MT Refining Capacity 11 Refineries 75% * Average Refinery Utilisation Key Products Legend: Bulk Processing Differentiated Food Refined bulk products Ingredients produced by Non-food products * Excluding Industrial Enterprises (IE) Soya in Thailand produced by the Group’s bulk the Group’s refineries: produced by the Group’s Note: refineries: RBD Olein, RBD Bakery fats, specialty oils, biodiesel, oleochemicals ▪ Figures as at 31 December 2018 Stearin, CPKO, RBD PKO, etc. confectionery fats, health and nutrition plants ▪ Names of refineries in brackets refers to the respective proposed new names
8 Downstream – Forging the Pathway to Global Consumers to Establish Lasting Relationships Region Customer End Product Refinery Ingredient SD Oils Malaysia Langat Refinery Premium Quality Olein SD Oils Europe Zwijndrecht Refinery B.V Palm Olein SD Oils South Vema 37 South Africa Africa Pty Limited Refined Palm Oil SD Oils Malaysia Biodiesel Sdn Bhd Refined Palm Oil SD Oils Refined Europe Liverpool Palm Oil Refinery Limited
Key Investment Highlights
10 Investment Highlights 1 Strong Investment Proposition The World’s Largest Oil Palm Plantation Company by Oil Palm 2 Planted Area, with Established Reputation as the World’s Largest Producer of Certified Sustainable Palm Oil 3 Well Positioned to Benefit from Sound Industry Fundamentals & Strong Demand Growth Trends 4 Fully Integrated Business Model with Diversified Operations Along the Palm Oil Value Chain 5 Innovative & Market Leading R&D Supports Operational Efficiency & Productivity 6 Experienced and Sound Board & Management Team
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