SIME DARBY PLANTATION Non-Deal Roadshow in Singapore 5 October 2018 - - PowerPoint PPT Presentation
SIME DARBY PLANTATION Non-Deal Roadshow in Singapore 5 October 2018 - - PowerPoint PPT Presentation
SIME DARBY PLANTATION Non-Deal Roadshow in Singapore 5 October 2018 2 Disclaimer This document is strictly confidential to the recipient. It is being supplied to you solely for your information and may not be reproduced, redistributed or passed
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This document is for the purposes of information only and is not intended to form the basis of any investment decision. This presentation may contain forward- looking statements by Sime Darby Plantation that reflect management’s current expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are based on various assumptions and made subject to a number of risks, uncertainties and contingencies and accordingly, actual results, performance or achievements may differ materially and significantly from those discussed in the forward- looking statements. Such statements are not and should not be construed as a representation, warranty or undertaking as to the future performance or achievements of Sime Darby Plantation and Sime Darby Plantation assumes no obligation or responsibility to update any such statements. No representation or warranty, express or implied, is given by or on behalf of Sime Darby Plantation or its related corporations (including without limitation, their respective shareholders, directors, officers, employees, agents, partners, associates and advisers) (collectively, the “Parties”) as to the quality, accuracy, reliability, fairness or completeness of the information contained in this presentation or its contents or any oral or written communication in connection with the contents contained in this presentation (collectively, the “Information”), or that reasonable care has been taken in compiling or preparing the Information. None
- f the Parties shall be liable or responsible for any budget, forecast or forward-looking statements or other projections of any nature or any opinion which may
have been expressed or otherwise contained or referred to in the Information. The Information is and shall remain the exclusive property of Sime Darby Plantation and nothing herein shall give, or shall be construed as giving, to any recipient(s) or party any right, title, ownership, interest, license or any other right whatsoever in or to the Information herein. The recipient(s) acknowledges and agrees that this presentation and the Information are confidential and shall be held in complete confidence by the recipient(s). All the images, pictures and photos including design drawings in relation to the company’s property development projects contained in this document are artist impression only and are subject to variation, modifications and substitution as may be recommended by the company’s consultants and/or relevant authorities.
S E C T I O N PA G E 1 Company Overview 4 2 Key Investment Highlights 9 3 Business Strategies & Future Plans 22 4 Industry Outlook 31 5 Financial Overview 34 6 Appendix 42
Table of Contents
Company Overview
Business Overview
Integrated Plantation Company Involved in the Entire Palm Oil Value Chain
5
Upstream Downstream Others
Oil palm, rubber & sugarcane estates
- Developing, cultivating and managing
- il palm, rubber and sugarcane
plantation estates Milling of FFB and processing & sales
- Milling of FFB into CPO and PK
- Processing and sales of rubber and
sugarcane Others
- Cattle rearing and beef production
Bulk and refined oils & fats
- Production and sales of refined oils
and fats (which includes specialty and end-user oils and fats) Oleochemicals, biodiesel products & derivatives
- Production and sales of
- leochemicals, biodiesel products
and derivatives R&D
- Focused on yield and productivity
improvements, increasing revenue streams and developing sustainable practices while pursuing innovative strategies Renewables business
- Development of green technology
and renewable energy which includes biogas and composting Agribusiness
- Provision of agriculture products and
services
Oil palm estate Mill Refinery Food application High-yielding genome seeds Renewables
Snapshot of Oil Palm Plantation Operational Statistics
6
FY17/18 unless
- therwise stated
Malaysia Indonesia Liberia PNG & Solomon Islands Total Total oil palm planted area(ha) 301,027 201,220 10,441 87,304 599,992 Mature area (ha) 252,055 158,180 9,701 77,500 497,436 Palm tree age profile & average tree age (Years) FFB production (mn MT/year) 5.822 2.615 0.065 1.731 10.233 CPO production (Total) (mn MT/year) 1.419 0.710 0.016 0.508 2.653 PK production (Total) (mn MT/year) 0.357 0.160 0.003 0.130 0.650 FFB yield (MT/ha) 23.13 16.40 6.78 22.36 20.51 OER 20.40 21.39 20.60 22.41 21.02 KER 5.13 4.80 3.97 5.75 5.15
16% 22% 35% 18% 9%
<3 yrs 4-8 yrs 9-18 yrs 19-22 yrs >22 yrs
21% 12% 19% 38% 10%
12.7 yrs
7% 93%
14.1 yrs
11% 26% 48% 12% 3%
5.4 yrs 11.4 yrs
17% 20% 32% 23% 8%
12.8 yrs
Snapshot of Downstream Operations
7 Note: Figures as at 30 June 2018
UNITED KINGDOM New Britain Oils Ltd. (300,000 MT/year) NETHERLANDS Sime Darby Unimills B.V. (450,000 MT/year) SOUTH AFRICA Sime Darby Hudson & Knight (162,500 MT/year) VIETNAM Golden Hope Nha Be (99,000 MT/year) THAILAND Morakot Industries (379,500 MT/year) Industrial Enterprises (IE) Soya (33,000 MT/year) MALAYSIA Sime Darby Jomalina (429,000 MT/year) Nuri Refinery (660,000 MT/year) Sime Darby Kempas (165,000 MT/year) Sime Darby Austral (330,000 MT/year) INDONESIA PT Golden Hope Nusantara (825,000 MT/year) PAPUA NEW GUINEA Kumbango (140,000 MT/year)
12
Refineries
~4.0 million MT
Refining Capacity
Legend Differentiated Food
KEY PRODUCTS
- Food: Palm oil products, specialty oils & fats, phytonutrients, refined PKO,
vegetable ghee, shortening & dough fat, industrial margarine, cooking oil, CPKO & PK cake for animal feed, and non-dairy products
- Non-Food: Oleochemicals (high quality fatty acids, glycerine, fatty alcohols,
triacetin, methyl esters, oilfield chemicals, ozone acids) and biodiesel
Bulk Processing
68%
Average Refinery Utilisation
Downstream – Our renowned brands and winning products are used worldwide
8 * SDFBM & SDEPL is the sales and marketing arm of SDP which sells B2C products manufactured by Malaysian SDP refineries & third parties
Jomalina Nuri Kempas Austral Nusantara Morakot Nha Be Unimills Liverpool H&K Kumbango
Bulk Bulk Bulk Bulk
IE
Bulk B 2 B B 2 C Vema
(no logo)
T OP 3 B RANDS
( I N T E R M S O F R E V E N U E ) SD Food & Beverage Malaysia (SDFBM)* & SD Edible Products Ltd (SDEPL)*
Morakot Nha Be
Key Investment Highlights
Investment Highlights
10
Strong Investment Proposition Well Positioned to Benefit from Sound Industry Fundamentals & Strong Demand Growth Trends The World’s Largest Oil Palm Plantation Company by Oil Palm Planted Area, with Established Reputation as the World’s Largest Producer of Certified Sustainable Palm Oil Fully Integrated Business Model with Diversified Operations Along the Palm Oil Value Chain Innovative & Market Leading R&D Supports Operational Efficiency & Productivity Experienced and Sound Board & Management Team 1 2 3 5 4 6
Sime Darby Plantation’s Strong Investment Proposition
11
1
21 MT/ha 23 MT/ha
FY18 FY23 Target
FFB PRODUCTION GROWTH POTENTIAL STRENGTHENING DOWNSTREAM CONTRIBUTIONS & MARGINS LOWERING COST IMPROVING GEARING & CASH FLOW HIGH DIVIDEND POLICY
- f Net Profit
F F B Y I E L D
61% 40%
As at 30 Jun 2017 As at 30 Jun 2018
G R O S S G E A R I N G
12
1 Estimated based on global planted area of 21.5 mn ha worldwide 2 Based on global CPO production of 67.9 mn MT in 2017
Note: Figures as at 30 Jun 2018
World’s Largest Oil Palm Plantation Company with More Than 600,000 Hectares of Planted Area
2
We are the world’s largest oil palm plantation company by oil palm planted area with total landbank of more than 987,000 hectares across Malaysia, Indonesia, PNG & Liberia
20%
Leader in Sustainability – World’s Largest Producer of CSPO
- f Global CSPO
Production Capacity1
~600,000 hectares
World’s Largest Oil Palm Plantation Company (by planted area)
4 mn MT p.a.
Total Refining Capacity (12 Refineries)
Market Leading R&D
Edison Award 2017 under the Energy and Sustainability category
(Genome Select Oil Palm Project)
248
Estates
72
Mills
11
Crushing Plants
(inclusive of soy crushing plant)
2.65 mn MT
FY18 Total CPO Production (~4% of Global Market Share2)
13
Our Journey to Sustainability
2
1985
- Introduced
Zero burning 1990
- Biological
control for IPM 1994
- EMS-ISO
14001 1992
- EUNEP Global 500
Roll of Honour for commercialisation of Zero Burning practice 2002
- Founding
member
- f RSPO
- POME
utilisation as compost 2008
- Achieved first
RSPO certification 2004
- First Global GAP
certification 2010
- First
certification
- f SCCS and
ISCC
- Pioneered the Zero Burning Policy in 1985
- One of the founding members of RSPO
- Largest producer of CSPO: Malaysia 100%, PNG 100% & Indonesia 96% certified
- No deforestation of primary and virgin forest
- No new development on peatlands
- No development of HCS areas, once defined
- Committed to Environmental and Social Principles – HCV, Human Rights & FPIC
2012
- Became largest
producer of CSPO globally 2015
- Acquisition of a fully
RSPO certified & traceable palm oil producer, New Britain Palm Oil 2016
- Launched the
Responsible Agriculture Charter (RAC)
- Commitment to
the HCS Convergence Agreement 2017
- Launch of the
Human Rights Charter (HRC)
- Commitment to
balanced development
2018
- nwards
Moving Forward
- Compliant to the RAC &
HRC
- 100% RSPO certified
- Low carbon/carbon neutral
Palm Products
- 100% Traceability
- Best-in-class HCV/HCS,
water conservation 2014
- Founding
member of the HCS Science Study 2013
- First KKPA
smallholders certified to RSPO in Indonesia
14
As a signatory to the Sustainable Palm Oil Manifesto, we are committed to implementing leading industry practices around High Conservation Value and HCS in new developments
C E R T I F I C AT I O N S TAT U S High Carbon Stock (HCS) Commitment Responsible Agriculture Charter (RAC)
Launched in Sep’16, the RAC is a summary of SDP’s commitments surrounding:
- Human rights & social development
- The environment
- Corporate integrity
97%
RSPO-certified
100%
MALAYSIA
Sime Darby launched it’s Human Rights Charter to articulate its commitment in respecting human rights in line with the United Nations Guiding Principles
- n Business and Human Rights
Human Rights Charter (HRC) 96%
INDONESIA
100%
PNG & SI
R S P O M S P O I S P O
100%
MSPO-certified
96%
ISPO-certified Target to be 100% RSPO- certified, pending resolution of PT MAS (Indonesia) issues, which is on-going
A s a t 3 0 J u n e 2 0 1 8 Ta r g e t
Target to be 100% ISPO- certified by end of 2018
Sustainability – Committed to Good Agriculture Practices
2
15
Sustainability – Traceability
2
As at 30 Jun 2018
Sime Darby Open Palm Traceability Dashboard provides Sime Darby Plantation’s customers with access to source the products purchased from Sime Darby Plantation
The dashboard and the list of mills can be found at: http://www.simedarbyplantation.com/sustainability/open-palm-traceability-dashboard
O P E N PA L M T R A C E A B I L I T Y D A S H B O A R D
Upstream – Mill Traceable up to plantations Downstream – Refinery, KCPs & Biodiesel Traceable up to plantations Traceable up to mills 85.7% Traceable CPO Palm Kernel 100% Traceable 77.5% Traceable CPO Palm Kernel FFB 84.0% Traceable
SDP targets for Upstream – Mills to be 100% traceable up to plantations by end of 2020
99.3%
Traceable
100% of SDP’s Downstream is traceable up to mills, with the comprehensive list of mills supplying to SDP available on the Dashboard
16 Source: Company
Sustainability – Driving Market Demand
2
11.8mn MT
Global CSPO Production Capacity (as of August 2018)
- All of SD Plantation’s refineries are RSPO-
certified
- New Britain Oils’ refinery in Liverpool is a fully
Certified Segregated Refinery
- We have modified and expanded our milling
and refinery capacity to increase production of Premium Quality (PQ) oil
- PQ oil offers low free fatty acid oil blends
NURI REFINERY (MALAYSIA)
NEW BRITAIN OILS (UK)
CSPO PRODUCTION CAPACITY
17
Geographical Breakdown for FY18 Total Revenue Market Reach Extends to the Top 5 Global Palm Oil Consumer Upstream Operations
- Presence in 5 Countries - Malaysia, Indonesia, PNG &
Solomon Islands, Liberia
- Developing, cultivating and managing oil palm,
rubber & sugarcane plantation estates
- Operates and manages 249 plantation estates and
72 palm oil mills
- Cattle rearing & beef production
Downstream Operations
- Operating across 16 Countries - Malaysia, Indonesia,
Netherlands, Thailand, United Kingdom, PNG, Vietnam & others
- Production & sales of bulk & refined oils and fats,
- leochemicals, biodiesel products and derivatives
- Manages and operates 12 refineries with a total
refinery capacity of 4 mm MT/year
FY18 Total Revenue = RM14,369 mm
74% of FY18 revenue is derived from the Top 5 Global Palm Oil Consuming Countries/Region
(from Malaysia, Europe, India, Indonesia & China)
Our wide & diverse geographical reach of business operations will allow us to leverage on strong industry fundamentals
Strong Geographical Presence
Source: Frost & Sullivan, company
Well Positioned to Benefit from Sound Industry Fundamentals & Strong Demand Growth Trends
3
Malaysia 23% Europe 22% India 19% Other SEA 11% Indonesia 7% Other Countries 7% South Africa 5% China 3% PNG & SI 3% Liberia 0.2%
52.6 57.9 59.5 60.8 62.7 65.5 5.7 6.4 6.5 6.8 6.6 7.0 100.5 101.8 107.8 109.5 112.1 115.4 2012 2013 2014 2015 2016 2017 Palm Oil Palm Kernel Oil Others 62.7 65.5 66.9 70.2 73.8 77.7 81.7 795 735 761 771 782 793 804
30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0 600 650 700 750 800 8502016 2017 2018F 2019F 2020F 2021F 2022F Palm Oil Consumption (mn MT) CPO Price, CIF Rotterdam (constant USD) 1.28 2.49 3.48 4.55 5.36 6.26 5.63 6.16 2010 2011 2012 2013 2014 2015 2016 2017
18
Well Positioned to Benefit from Sound Industry Fundamentals & Strong Demand Growth Trends (cont’d)
3
Our wide & diverse geographical reach of business operations will allow us to leverage on strong industry fundamentals
Note: (1) Price rationalization in 2017 due to recovery of FFB yield and CPO production in Indonesia & Malaysia post El Nino drought. Source: Frost & Sullivan, World Bank, Oil World 2018, RSPO, LMC Oilseeds & Oils 2017
Demand for Palm Oil Estimated to Reach 81.7 mn MT by 2022, Providing Support to CPO Prices
Capitalising on strong demand growth for palm oil
Global Edible Vegetable Oil Consumption (mn MT)
Increasing Demand for Palm Oil & Edible Oils Driven by Growing Population & Food Requirements
2012-2017 CAGR Palm oil: +4.5% PKO: +4.3%
Global Sales of Certified Sustainable Palm Oil (mn MT)
Strong CSPO Sales Growth Globally is a Direct Consequence of the Sustainability Commitments of Various FMCG companies
158.8 166.1 173.8 177.1 181.4 187.9
19
Fully Integrated Business Model with Diversified Operations Along the Palm Oil Value Chain
4
Economies of scale & cost synergies Diversification of commodity price volatility
Shared use of integrated processing facilities & infrastructure Extensive sales and distribution network Flexibility to channel products & resources to markets with greater demand Ability to convert by-products (palm fibres, sludge oil, palm oil mill effluent, empty
fruit bunches, palm kernel expeller) into applications such as animal nutrition and tocotrienols
Strengthen our ability to trade around our own assets Allows diversification of upstream operations which are susceptible to
volatile commodity prices
More stable and resilient earnings as volatilities in segment margins are
mitigated
Ability to better manage commodity price volatility
- Flexibility to channel CPO to various segments of downstream
process by capitalizing on the different price characteristics and feedstock types in the downstream segment
With a fully integrated business model, we are able to diversify our earnings risk from volatility of commodity price and leverage on operational synergies
1 2 Key Benefits of a Fully Integrated Business Model
Upstream Downstream
Seed Production Oil Palm Nursery Estate Management Mills – CPO & PK Production Bulk Refineries/ Facilities Specialty Food Refineries Non- Food Bulk Sales Rubber/Sugar Cane/Cattle Products Smallholders Aggregation Trading & Aggregation of CPO Oleo- chemicals Biodiesel Compost Gasification/Biogas Animal Feed Tocotrienol Biodiesel Palm Oil Products
- Cooking Oil
- Specialty Oils &
Fats
- Refined PKO
- Spreads
- Shortenings
- Infant Formula
- Dairy Fat
Replacers WASTE TO WEALTH By-Product Frond Palm Fibres, Sludge Oil, POME, EFB, PKE PFAD
20
Market Leading R&D Supports Operational Efficiency and Productivity
5
Market Leading Research & Development
- Global network of 5 R&D centres in Malaysia, Indonesia & PNG,
and 3 innovation centres in Malaysia, the Netherlands and South Africa
- Supports operational efficiency and improvements to upstream
productivity, and we develop sustainable practices while pursuing transformational innovative strategies
- Development of new palm oil breed via a genomic selection and
prediction process
- Malaysia’s first company to win the coveted Edison Award,
which recognised its groundbreaking genome initiative
- Research and production of high yield planting material such as
new Dami seeds progenies which are expected to deliver better
- il yield improvements than its predecessors
Adopt best agro-management practices
- Precision agriculture to improve yield
- Efficient water management and irrigation system
- Integrated pest management programmes
- Mechanisation initiatives to improve manpower ratio, cost
efficiency and productivity
- Digitisation initiatives
21
Renaka Ramachandran Chief Financial Officer Datuk Franki Anthony Dass Chief Advisor and Value Officer Tan Sri Dato’ Abdul Ghani Othman Chairman and Non- Independent Non- Executive Director Tan Sri Dato’ Seri Mohd Bakke Salleh Executive Deputy Chairman and Managing Director Tan Sri Dato’ Seri Mohd Bakke Salleh Executive Deputy Chairman and Managing Director Mohamad Helmy Othman Basha Chief Operating Officer, Upstream
- Dr. Simon Lord
Chief Sustainability Officer Mohd Haris Mohd Arshad Chief Operating Officer, Downstream
- Dr. Harikrishna
Kulaveerasingam Chief Research & Development Officer
Our Board and management team have the ability to drive our Group through transformation into the next phase of growth which is to innovate, execute and create value
Datuk Zaiton Mohd Hassan Senior Independent Non- Executive Director Dato’ Che Abdullah @ Rashidi Che Omar Independent Non- Executive Director Dato’ Mohamad Nasir
- Ab. Latif
Non-Independent Non- Executive Director Dato’ Mohd Nizam Zainordin Non-Independent Non- Executive Director Tan Sri Datuk Dr. Yusof Basiran Independent Non- Executive Director Zainal Abidin Jamal Non-Independent Non- Executive Director Muhammad Lutfi Independent Non- Executive Director Tan Ting Min Independent Non- Executive Director
Board of Directors Management Team
Board members have held prominent positions and directorships in areas such as plantation, banking and finance sectors and in governmental, regulatory and professional bodies Experienced management team with an average of about 15 years
- f experience
in the plantation industry
21
- Dr. Shariman
Alwani Chief Strategy & Innovation Officer Eliza Mohamed Chief Communications Officer Lee Ai Leng Group General Counsel
Experienced and Sound Board & Management Team
6
Zulkifli Zainal Abidin Chief Human Resources Officer Norzilah Megawati Abdul Rahman Group Secretary John Lou Leong Kok Independent Non- Executive Director
Business Strategies & Future Plans
The Strategy Moving Forward – What is Different?
23
‘The Leading Integrated Global Palm Oil Player’
The global brand for plantation sustainability VISION GROWTH STRATEGY TARGETS BY 2023
U P S T R EA M
DRIVING OPERATIONAL EXCELLENCE VIA DIGITISATION
D OW N S T R EA M I N T EG R AT I O N 1 2 3
Towards Mission 23:23
Achieving FFB yields of 23 MT/ha & OER of 23% by 2023
Higher Downstream PBIT contribution
20% of PBIT within the next 5 years
Integrated economics across the value chain SERVING THE CUSTOMERS OF THE FUTURE MAXIMISING RETURNS ACROSS THE PALM OIL VALUE CHAIN
Relentless Focus on Execution to Drive Value Creation
- Drive execution and de-bottleneck key initiatives
- Track progress on value creation initiatives
- Assess and monitor on weekly basis and ensure
accountability across all stakeholders
PROGRAM
MANAGEMENT
PLATFORM
IMPROVE TRACKING EFFICIENCY & MANAGE VALUE CREATION PROGRESS
REGULAR RHYTHM & PROCESSES
SUSTAINED WEEKLY MEETINGS TO DRIVE EXECUTION
VALUE CREATION TARGETS
GRANULAR BREAKDOWN OF TARGETS ACROSS WORK STREAMS
FINANCIAL ALIGNMENT
GREATER CLARITY & ALIGNMENT ON BUDGETING GAPS TOWARDS FY2022
PROGRESS TO DATE
TRANSFORMATION OFFICE
Value Creation
Establishment of the Transformation Office to intensify value creation
24
Upstream – Driving Operational Excellence
25
ELEVATING YIELD PERFORMANCE
- High yielding
planting material
(e.g. Genome, Dami)
B
SUPERIOR PLANTING MATERIAL
- Effective water
management & conservation practices
C
WATER MANAGEMENT
- Enhancing
automation and digitisation
- Advanced milling
and latest extraction technologies
D
PLANTATION OF THE FUTURE
- Group: 5-7%
A
ACCELERATED REPLANTING
Upstream – Replanting with High Yielding Materials
26 Note: As at 30 Sep 2017 (as per the Prospectus)
Replanting Rate
5-7%
Genome Select can deliver up to 15% oil yield improvement as compared to our current commercial offering, Calix 600
NEW PLANTING MATERIALS
High Yielding Materials Average Age 10 years by 2025
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net Impact of Replanting on PBIT (RM mn)
Financial Year
Oil Palm Replanting (‘000 ha) Total Area Coming into Maturity1 (‘000 ha)
291,900 ha
BY FY2022
201,600 ha
BY FY2022
POSITIVE RETURNS
FY2017 ONWARDS
10.8 8.8 12.3 15.5 20.9 20.6 22.9 30.0 28.4 31.4 31.2 30.3 28.8
- GENOME SELECT
- SUPER FAMILY DAMI
11 MT/ha 9 MT/ha
ACCELERATED REPLANTING
A
SUPERIOR PLANTING MATERIAL
B
27
Upstream – Innovative Watering Initiatives
WATER MANAGEMENT
C MALAYSIA INDONESIA LIBERIA PAPUA NEW GUINEA & SOLOMON ISLAND
- Installing mobile pumping equipment at our plantations
- Building permanent water pumps with engines at rivers and water bodies at
some of our plantations
- Irrigation system for drier, inland soils and water management for coastal
areas and areas with high water table
Innovative and cost effective irrigation techniques to ensure that
- ur estates and mills maintain adequate and consistent water
supply during prolonged dry months
28
Upstream – Moving Towards a Connected, Integrated, Automated and Sustainable Plantation
PLANTATION OF THE FUTURE
D
SIME DARBY DIGITAL SUPERVISION (SDDS) Among the first in the Malaysian oil palm industry to digitally connect upstream operations (from estate
- ffice to field and from mill office to
factory floor) (SEMUA 2.0 app)
- Deployment of unmanned aerial
vehicles for Estate mapping
- Analysis of conditions for speedy
intervention
- Monitoring and supervision
Also includes advanced milling and latest extraction technologies through:
- continuous processing,
integrated processing complex
- minimum GHG emissions
- zero discharge
ENHANCING OER AND MILL EFFICIENCY SIME DARBY DRONE MONITORING RESEARCH & DEVELOPMENT
- Scale up of Genome Select oil
palm plantings (>1,000 ha to be planted)
- Testing of new palm traits
- Scale up of enzymatic
extraction process to increase OER in mills
- Lower manpower requirement
and increase productivity
- Recently rolled out in Indonesia
and Liberia Exploring other innovative initiatives to improve processes, efficiency & productivity INNOVATION INITIATIVES MECHANISATION INITIATIVES
Downstream – To Become The Preferred Sustainable Palm Oil & Fats Specialist & Customer Solutions Provider
29
- Create value by marketing and
strengthening the “Sime Darby” brand
Through achieving sustainability, quality and food safety requirements
- Explore & expand opportunities to increase
- ur presence in key geographical markets
Such as India, Southeast Asia, the United States, Europe, Africa, the Middle East and China
- Focus on differentiated, sustainable and
traceable high value products
HOW DO WE DELIVER VALUE ?
Downstream – Shifting Into High Margin Specialty Products & Deriving Full Value from CSPO
30
Emphasis on Physical CSPO Sales PQ Oil as the Gateway to Niche and High Value Food Segments Differentiated : Commodity Supply Chain Optimisation to Maximise Value
- f CSPO
Physical Sales vs. Green Certificate
Drive production of differentiated products Drive physical sales vs Green certificates
Commodity vs. Differentiated
Functional RM1,800/MT Infant formula RM700/MT Frying RM300/MT Dairy fat replacer RM200/MT
1) Industry Average Contribution Margin: 2) SD Nutrition Leveraging on Waste to Wealth 2) Working Towards Fully Segregated & Traceable Refineries
Nuri Refinery SD Unimills New Britain Oils
1) Aggregation & Growth Partnership Model
(collaboration with smallholders)
46% 86% 88% 84% 54% 14% 12% 16% FY14/15 FY15/16 FY16/17 FY17/18
Physical Certificate
48% 42% 36% 33% 52% 58% 64% 67% FY17/18 FY16/17 FY15/16 FY14/15
Differentiated Commodity
A B C D
Industry Outlook
Demand Drivers of the Global Oil Palm Plantation and Edible Oils Industry
32
Competitive Pricing
- f Palm Oil and
Price Affordability
- f Edible Palm Oil
Increased consumer awareness on food sustainability Wide Range of Uses for Palm Oil, Palm Kernel Oil and their Related Products Growing Demand for Food due to Increase in Population Increased in Biodiesel Demand CSPO sales grew at a CAGR of
25.2%
between 2010 and 2017, driven by a direct consequence of the sustainability commitments of FMCG companies By 2020, CSPO sales is estimated to reach c.
11.0 mm MT
To increase by
60%
By 2050 to meet
increase in energy intake demand (from 2005 – 2007) Average daily energy supply expected to increase by 11% during the same period
Type of Oil Price (USD/MT) in 2017
Palm Oil 689 – 735
Soybean Oil 716 – 846 Coconut Oil 1,603 Palm Kernel Oil 1,278 Corn Oil 825 – 943 Rapeseed Oil 870 Groundnut Oil 1,484
The physical and chemical characteristics
- f oil palm products and
their derivatives allow them to be applied in a wide variety of both
food and non-food end-user industries Lower oil reserves and increased in oil extraction cost has
driven the global demand for palm oil for the production of biodiesel By 2052, it is estimated that oil reserves may no longer be able to support the global economy Source: Oil World 2017/2018
Outlook of the Global Palm Oil and Edible Oils Market
33 Source: IMR Report prepared by Frost & Sullivan, Oil World 2018, LMC Oilseeds & Oils 2017
Global CPO production, palm oil consumption, demand for CSPO and CPO prices expected to increase
Increase in CPO production largely backed by technological advancements, including:
- Usage of high yield oilseeds
- Usage of mechanisation in the harvesting process
Factors driving demand for palm oil:
- Increase in global population & food requirements
- Ongoing efforts in developing biodiesel programs by nations
(e.g. the EU, the U.S., Brazil and Indonesia)
Global CPO Production and Consumption Forecast Demand for Vegetable Oils Expected to Remain Strong in the Future Global Consumption of Vegetable Oils
(mn MT) (mn MT)
Factors driving demand for edible oils:
- Growing population and increasing food consumption and
usage of non-food applications of edible oils (e.g. soap and detergents)
- Ban on trans-fats in the U.S. beginning 18 June 2018 is likely to
drive demand for vegetable oil alternatives from hydrogenated
- ils
- Wide range of uses of edible oils & fats
181.4 187.9 195.5 208.3 230.7 255.7 2016 2017 2018F 2020F 2025F 2030F 62.7 65.5 66.9 70.2 73.8 77.7 81.7 59.2 67.9 69.6 71.8 74.2 76.6 78.9 2016 2017 2018F 2019F 2020F 2021F 2022F Global Palm Oil Consumption Global CPO Production
Financial Overview
35
51.6
in RM’mn
FY2017 14,779 4,455
2,227 2,228
4,031 3,507
1,279 2,228
Revenue PBIT PBT
Recurring PBIT Non-Recurring PBIT Recurring PATAMI Non-Recurring PATAMI
PATAMI
Attributable to owners of the Company
Basic EPS
1
(RM’sen)
18.8 32.8
Recurring EPS Non-Recurring EPS
1 Based on weighted average number of ordinary shares post-listing of SD Plantation
25.4 FY2018 14,369 2,536
2,019 517
2,377 1,727
1,236 491 18.2 7.2
YoY %
- 3%
- 43%
- 9%
- 77%
- 41%
- 51%
- 3%
- 78%
- 51%
- 3%
- 78%
Financial Highlights
Weaker performance due to lower non-recurring net gains, partially mitigated by lower finance costs
36
Upstream Operations – Group Total
FY2018
20.5
FFB Yield (MT/ha) +6%
YoY %
FY2017
21.0
OER (%)
- 1%
5.1
KER (%) +2%
4.3
Oil Yield (MT/ha) +5%
1.1
PK Yield (MT/ha) +10%
10.23
FFB Production (mn MT) +5%
2.65
CPO Production (mn MT) +7%
0.65
PK Production (mn MT) +11%
2,546
CPO Price (RM/MT)
- 11%
2,146
PK Price (RM/MT)
- 13%
1,707
Cost to Customer (RM/MT pp)
- 11%
10,052
Cost to Customer (RM/mature ha)
- 5%
19.4 21.3 5.0 4.1 1.0 9.78 2.48 0.58 2,848 2,469 1,915 10,542
Production Statistics
37
FY2018
Return on Invested Capital (ROIC) - Recurring
YoY %
FY2017
15.2
Upstream Malaysia
+1%
15.1 13.2
Upstream Indonesia
- 14%
15.4 3.0
Upstream PNG/SI
- 39%
4.9 7.2
Downstream
- 9%
7.9 10.2
SDP Group (including non-recurring)
- 41%
17.2 8.5
SDP Group – Recurring
+10%
7.7 12.9
SDP Group – Recurring (excluding NBPOL)
+28%
10.1
Return on Equity (ROE)
11.5
SDP Group (including non-recurring)
- 51%
23.5 9.0
SDP Group – Recurring
+1%
8.9
Return on Invested Capital & Equity
38
Borrowings & Cash Flow
As at 30 June 2018
55%
8,815
61%
9,300
44%
7,214
Gross Gearing1 Borrowings (in RM’mn)
48% 57% 39%
Net Gearing2
39%
6,452
35%
- Gearing as at 30 June 2018 declined
compared to the same period last year.
- Lower finance costs at RM183mn in
FY2018 (FY2017: RM472mn) given lower average interest rates on borrowings of 2.84% in FY2018 (FY2017: 3.54%) and lower borrowings by 30% YoY at RM6,489mn in FY2018 (FY2017: RM9,300mn).
As at 30 Jun 2017 As at 30 Sep 2017 As at 31 Dec 2017 As at 31 Mar 2018 As at 30 Jun 2018 Long Term Debt Short Term Debt Intercompany Loans
70% 14% 16% 69% 19% 12% 80% 20% 82% 18% 83% 17%
40%
6,489
38% RM2,675mn
NET CASH GENERATED FROM OPERATING ACTIVITIES
30 June 2017: RM3,292mn (-19% YoY)
RM-884mn
NET CASH USED IN INVESTING ACTIVITIES
30 June 2017: RM-1,578mn (-44% YoY)
RM-2,091mn
NET CASH USED IN FINANCING ACTIVITIES
30 June 2017: RM-1,673mn (+25% YoY)
1 Gross Gearing is based on Total Borrowings (including intercompany loans) divided by Total Equity 2 Net Gearing is based on Total Borrowings (including intercompany loans) less Bank Balances, Deposits & Cash divided by Total Equity
Dividend Policy
39
The declaration of interim and final dividends is subject to the discretion of our Board. However, our ability to pay dividends or make other distributions to our shareholders will depend upon a number of factors, including:
- the level of our cash, gearing, return on equity and retained earnings;
- our expected financial performance;
- our projected levels of capital expenditure and other investment plans;
- our working capital requirements; and
- our existing and future debt obligations.
No inference should be made from any of the foregoing statements as to our actual future profitability or our ability to pay dividends in the future. We propose to pay dividends out of cash generated from our operations after setting aside necessary funding for capital expenditure and working capital requirements. As part of this policy, our Company targets a dividend payout ratio of not less than 50.0% of our consolidated profit attributable to the owners of our Company under MFRS, beginning 1 July 2017
Proposed Dividend Reinvestment Plan (DRP)
40
The Company proposed to establish a DRP, which is subject to the relevant regulatory approvals and shareholders’ approval being obtained at an Extraordinary General Meeting, and if approved, may be applied to any future cash dividends which includes any interim, final, special or other types of cash dividends Electable Portion For every implementation of the Proposed DRP, SD Plantation Board will determine whether the Proposed DRP will apply in whole or in part to the declared dividend Issue Price of DRP Shares The issue price to be determined (“Issue Price”) will be based on a volume weighted adjusted price (“VWAP”) for the five (5) market days up to a day immediately preceding the price-fixing date, after adjusting for the following: Gross dividend adjustment (“Ex-dividend VWAP”); and A discount of not more than 10% to the Ex-dividend VWAP Odd Lots Shareholders participating in the Proposed DRP may be allotted new shares in odd lots (not rounded down to the nearest Board Lot, i.e. multiple of 100 shares) depending on their entitlement
PROPOSED DRP SCHEME, TERMS & STRUCTURE
Prudent financial and cashflow management Increase goodwill with shareholders
STRATEGIC RATIONALE
Proposed Dividend Reinvestment Plan (DRP)
41
All shareholders are eligible to participate in the Proposed DRP. However, it will only be offered for subscription in Malaysia. Overseas shareholders wishing to participate in the Proposed DRP will have to provide a Malaysian address to the share registrar. The Proposed DRP will be tabled to the shareholders for approval on 21 November 2018 at SD Plantation’s Extraordinary General Meeting (EGM) which will convene immediately after SD Plantation’s Annual General Meting (AGM). The allotment of new shares and payment of dividend will tentatively take place in January 2019 as shareholders will need adequate time to make their election.
ELIGIBILITY TIMELINE
The SD Plantation Board has determined that the Proposed DRP will be applicable to the final and special final dividend for the financial year ended 30 June 2018, subject to the necessary approvals.
APPLICATION TO THE FYE JUNE 2018 DIVIDENDS
The Company proposed to establish a DRP, which is subject to the relevant regulatory approvals and shareholders’ approval being obtained at an Extraordinary General Meeting, and if approved, may be applied to any future cash dividends which includes any interim, final, special or other types of cash dividends
Dividend for the Year Ended 30 June
42
1 The Proposed DRP will be applicable to the final and special final dividend for the financial year ended 30 June 2018, subject to the necessary approvals
FY2018 FY2017
Net Per Share (sen) Total Net Dividend (RM’mn) Net Per Share (sen) Total Net Dividend (RM’mn)
First Interim Dividend 3.5 238 50.0 300 Second Interim Dividend
- 100.0
600 Final Dividend1 8.0 544
- 11.5
782 150.0 900
As part of SD Plantation’s dividend policy, the Group targets a dividend payout ratio of not less than 50% of the consolidated profit attributable to the owners of the Company (PATAMI)
Payout Ratio
(out of recurring PATAMI)
63% 70%
The Group reported net non-recurring PATAMI of RM491 million in FY2018. The following special dividends have also been declared and proposed :
FY2018 Net Per Share (sen) Total Net Dividend (RM’mn) Special Interim Dividend 3.0 204 Special Final Dividend1 3.0 204 6.0 408
TOTAL ELIGIBLE FOR DRP
11.0 sen
Net Per Share
RM748mn
Total Net Dividend
Appendix
Revenue and PBIT
FY2018 Breakdown
44
Upstream 26% Downstream 73% Others 1%
FY18 Revenue by Segment
Increase was primarily due to the increase in sales of our refined edible oils and fats (downstream
- perations), sugar and
beef (upstream
- perations), mainly as
a result of the full year consolidation of NBPOL Group’s financial result.
10,304.0 11,946.5 14,779.4 14,369.0 FY2015 FY2016 FY2017 FY2018
RM’mn Increase was primarily due to the increase in the sales of our palm
- il products (i.e.
- ur upstream
- perations) and
- ur refined edible
- ils and fats (i.e.
- ur downstream
- perations).
Revenue FY18 Revenue by Geography FY18 PBIT by Segment
Upstream 83%
Downstream 13% Others 4% Malaysia 23% Europe 22% India 19% Other SEA 11% Indonesia 7% Other Countries 7% South Africa 5% China 3% PNG & SI 3% Liberia 0.2%
Upstream 94%
Downstream 11% Others 5%
TOTAL PBIT RECURRING PBIT
Lower revenue was due to lower average CPO and PK prices realised mitigated by the higher FFB production
1,031.4 1,002.9 3,551.9 1,885.4 10.0% 8.4% 24.0% 13.1% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 2000 4000 6000 8000 10000 FY2015 FY2016 FY2017 FY2018
Expenses, Operating Profit & PAT
FY2015 – FY2018
45
9,185.3 11,130.9 12,991.0 12,741.0 FY2015 FY2016 FY2017 FY2018
Increase principally reflects the increase in the production of refined edible oils and fats at our downstream operations where the purchase of edible oil and consumables for such production was higher, coupled with higher plantation operating costs and depreciation and amortisation from our upstream operations. RM’mn RM’mn Increase is mainly due to increased expenses from our upstream operations as well as an increase in edibles and consumables expenses from our downstream
- perations
Increase due to the higher revenue and gain from the sale of the parcel of lands to KSDB The lower overall operating profit margin is a result of lower FFB
- yield. However, this was partially
- ffset by the improvement of the
- perating profit margin in our
downstream operations. RM’mn
Operating Expenses Operating Profit & Operating Profit Margin PAT & PAT Margin
1,570.9 1,268.0 4,537.9 2,572.8 15.2% 10.6% 30.7% 17.9% 0.00% 10.00% 20.00% 30.00% 1000 6000 11000 FY2015 FY2016 FY2017 FY2018
Lower production costs from Upstream
- perations
Key Financial Metrics
FY2015 – FY2018
46 Note: FY17’s PBIT and PATAMI excluded the gain from the divestment of land to Kumpulan Sime Darby Berhad
12.85 14.37 14.78 11.95 10.30 4-year average FY18 FY17 FY16 FY15
Revenue (RM'bn)
7 9 8 4 7 4-year average FY18 FY17 FY16 FY15
ROIC %
2,447 2,536 4,455 1,259 1,538 4-year average FY18 FY17 FY16 FY15
PBIT (RM'mn)
1,800 1,727 3,507 967 997 4-year average FY18 FY17 FY16 FY15
PATAMI (RM'mn)
Snapshot of Capital and Debt
47 Note: (1) Based on Total Borrowings (including intercompany loans) divided by Total Equity 1.37 1.29 0.61 0.55 0.44 0.39 0.40
As at 30 Jun 2015 As at 30 Jun 2016 As at 30 Jun 2017 As at 30 Sep 2017 As at 31 Dec 2017 As at 31 Mar 2018 As at 30 Jun 2018
Days RM’mn (x) (x)
Working Capital Turnover Period Indebtedness by Maturity (as at 30 Jun 2018) Current Ratio Gross Gearing Ratio (1)
0.5 1.3 1.1 1.2 1.5 1.6 1.6
As at 30 Jun 2015 As at 30 Jun 2016 As at 30 Jun 2017 As at 30 Sep 2017 As at 31 Dec 2017 As at 31 Mar 2018 As at 30 Jun 2018
1,094.2 3,506.7 1,409.7 0.5 Within 1 year 1-2 years 2-5 years More than 5 years 52 44 38 40 78 85 71 75 46 39 34 35 As at 30 Jun 2015 As at 30 Jun 2016 As at 30 Jun 2017 As at 30 Jun 2018 Receivables Inventory Payables
Financial Highlights
Weaker performance due to lower non-recurring net gains, partially mitigated by lower finance costs
48
30
4QFY17: 2,628 (-99%)
25.4
FY17: 51.6 (-51%)
0.4
4QFY17: 38.6 (-99%)
in RM’mn (YoY %)
4QFY2018 FY2018
472
- 283
313
- 283
3,084
4QFY17: 3,686 (-16%)
14,369
FY17: 14,779 (-3%)
189
4QFY17: 2,834 (-93%)
2,536
FY17: 4,455 (-43%)
2,019 517
149
4QFY17: 2,722 (-95%)
2,377
FY17: 4,031 (-41%)
1,727
FY17: 3,507 (-51%)
1,236 491
Revenue PBIT PBT
Recurring PBIT Non-Recurring PBIT Recurring PATAMI Non-Recurring PATAMI
4QFY17: 606 (-22%) 4QFY17: 2,228 (>-100%) FY17: 2,227 (-9%) FY17: 2,228 (-77%)
PATAMI
Attributable to owners of the Company 4QFY17: 400 (-22%) FY17: 1,279 (-3%) 4QFY17: 2,228 (<-100%) FY17: 2,228 (-78%)
Basic EPS
1
(RM’sen)
4.6
- 4.2
18.2 7.2
Recurring EPS Non-Recurring EPS
4QFY17: 5.8 (-22%) FY17: 18.8 (-3%) 4QFY17: 32.8 (<-100%) FY17: 32.8 (-78%)
1 Based on weighted average number of ordinary shares post-listing of SD Plantation
Financial Performance by Segment
A decline in recurring PBIT due to lower profit contribution from the Upstream
- perations, partially mitigated by better earnings from the Downstream operations
49
Recurring PBIT in RM’mn (YoY %)
4QFY2018 FY2018
1 Others refers to Sime Darby Agri-Bio Sdn Bhd, Sime Darby Research Sdn Bhd, Sime Darby Technology Sdn Bhd, Sime Darby Biotech Lab Sdn Bhd,
Sime Darby Seeds Sdn Bhd, as well as investment holding companies, associates and joint ventures
403
4QFY17: 620 (-35%)
1,699
FY17: 2,011 (-16%)
1
4QFY17: -21 (>+100%)
53
FY17: -16 (>+100%)
68
4QFY17: 7 (>+100%)
267
FY17: 232 (+15%)
243
4QFY17: 380 (-36%)
92
4QFY17: 47 (+96%)
77
4QFY17: 219 (-65%)
- 9
4QFY17: -26 (+65%)
1,214
FY17: 1,199 (+1%)
364
FY17: 503 (-28%)
192
FY17: 429 (-55%)
- 71
FY17: -120 (+41%)
Upstream
Upstream Malaysia
Downstream Others
1
Upstream Indonesia Upstream PNG/SI Upstream Liberia
Operational Performance – Upstream
FFB production in FY2018 grew 5% YoY due to the achievement of the strongest yield performance in Malaysia in the last 5 years
50
FFB PRODUCTION
in ‘000 MT (YoY %)
- FFB production in Malaysia
grew 10% YoY in FY2018 on the back of sustained yield improvement efforts coupled with young mature palms entering their peak production
- In Indonesia, FFB
production was marginally lower in FY2018 as a result
- f accelerated replanting,
- n the back of lower
average mature ha of 159,436 in FY2018 (FY2017: 166,659 mature ha)
- FFB production in PNG/SI
in FY2018 was affected by weather abnormalities during the period, such as:
- Extremely high rainfall
in West New Britain and very dry period in Ramu
Operational Performance – Upstream
Marginally lower overall OER in FY2018 in Malaysia and PNG/SI
51
- OER in Malaysia
was weaker by 1% YoY in FY2018 as a result of the increase in young mature area with low oil to bunch ratio
- OER in PNG/SI was
weaker by 3% YoY in FY2018 on the back
- f weather related
issues such as extended intervals, crop quality and delay in crop evacuation, among contributing factors
CPO EXTRACTION RATE (OER)
in % (YoY %)
Operational Performance – Upstream
Lower average CPO price realised due to weaker market sentiment
52
AVERAGE CPO PRICE REALISED
in RM/MT (YoY %)
Financial Performance – Downstream
Higher PBIT in FY2018 driven by better earnings from the differentiated products business
53
30 56
FY17 FY18
7 16
4QFY17 4QFY18
7 68
4QFY17 4QFY18
232 267
FY17 FY18
in RM’mn
>+100% YoY +15% YoY
DOWNSTREAM PBIT PBIT BY SEGMENT
- Downstream PBIT strengthened in FY2018
driven by better earnings from:
- The differentiated products business
due to higher sales volume, improved contribution margin, and higher capacity utilisation
- The trading business taking advantage
- f the CPO price volatility
- This was offset by lower contribution from
the bulk business due to higher negative cost
- f oil cycle
76 153
FY17 FY18
- 14
51
4QFY17 4QFY18
>+100% YoY >+100% YoY
DIFFERENTIATED
126 58
FY17 FY18
14 1
4QFY17 4QFY18
- 93% YoY
- 54% YoY
BULK
>+100% YoY +87% YoY
TRADING
Operational Performance – Downstream
Continuous efforts to drive various operational initiatives to manage cost and improve margins
54
- Product ratio continues
to move towards higher contribution from the differentiated segment in FY2018
- As a result, capacity
utilisation and sales volume increased in FY2018
- n
better contribution by specialty refineries
- LSS savings grew by 19%
YoY in FY2018 due to 174 projects harvested during the period
1 LSS – Lean Six Sigma
The acquisition of 100% Equity Interest in Markham Farming Company Limited (MFCL)
55
STRATEGIC RATIONALE
MFCL is a private limited company incorporated in PNG which owns:
- 6,110 ha of agriculture land in Markham Valley,
PNG, comprising 2 estates – Munum (1,733 ha) and Erap (4,377 ha).
- Average age profile of the oil palm trees is
~18 months.
- 2 copra mills in Buka and Madang, PNG with a
total combined copra throughput capacity of 55,000 MT per annum.
- The
- il
palm plantation is strategically located close to Lae, PNG’s largest port, and has the ability to integrate with SD Plantation/NBPOL’s existing supply chain.
- MFCL is the largest coconut oil
exporter in PNG and the acquisition enables SD Plantation/NBPOL to expand its lauric oils business into coconut oil production, captive for its refining blends in Europe.
The acquisition of 100% Equity Interest in Markham Farming Company Limited (MFCL) (cont’d)
56
Note: USD 1 = RM4.0989
KEY VALUATION METRICS
OIL PALM COPRA
Total Enterpris e Valu e (EV ) = USD63. 6mn (RM260. 7mn) EV = USD36.5mn (RM149.6mn)
Madang Copra Mill Buka Copra Mill Year Commissioned 2012 2013 Processing Capacity 20,000 MT 35,000 MT EV/EBITDA
(based on Jan-Dec 2017)
3.6x
EV = USD27.1mn (RM111.1mn)
Land in Use Area (ha) EV/ha in USD in RM Total Planted Area (1) 4,018 9,084 37,234 Remaining Plantable Area (2) 1,695
- Total Plantable Area (1)+(2)
5,713 6,389 26,188 Non-Plantable Area (3) 397
- Total Land Bank (1)+(2)+(3)
6,110 5,974 24,487
Memorandum of Understanding between SD Plantation and COFCO
The collaboration is set to create greater demand for certified sustainable palm oil and increase trade volume between the two companies
57
SD Plantation has signed a Memorandum of Understanding with COFCO Group Co. Ltd., a leading agri- product merchandiser and food production company in China, to collaborate on a number of palm oil related ventures, such as:
- Joint research and development
for specialty
- ils
& fats and healthy palm oil products
- Enhance
sales and marketing efforts for specialty oils & fats and healthy palm oil products
- Joint
efforts in developing demand for sustainable palm oil in China
- Increase trade volume of palm
products
“This collaboration reflects our aspiration to be the leader in promoting the health benefits of palm oil and to produce certified-sustainable, high value palm oil products for the global market”
58
Summary of Operational Statistics
As at 30 June 2018
Upstream Geographical Coverage
As at 30 June 2018
59
Kalimantan Planted : 128,211 ha Landbank : 174,719 ha Sarawak Planted : 38,894 ha Landbank : 47,296 ha Sulawesi Planted : 3,950 ha Landbank : 4,712 ha Sabah Planted : 46,375 ha Landbank : 53,780 ha Peninsular Malaysia Planted : 228,432 ha Landbank : 247,527 ha Sumatera Planted : 70,983 ha Landbank : 98,874 ha Liberia Planted : 10,548 ha Landbank : 220,000 ha Papua New Guinea(PNG) & Solomon Islands (SI) Planted : 101,873 ha Landbank : 140,370 ha As at 30 Jun’18 Malaysia Indonesia Liberia PNG Solomon Islands Group Land bank (ha) 348,603 278,306 220,000 132,055 8,315 987,279
Oil Palm Planted Area (ha) 301,027 201,220 10,441 80,539 6,765 599,992 Rubber Planted Area (ha) 12,674 1,924 107
- 14,705
Sugarcane Planted Area (ha)
- 5,613
- 5,613
Grazing Pastures Area (ha)
- 8,956
- 8,956
Oil Palm Age Profile
As at 30 June 2018
60
Credit Ratings
61
Baa1, Stable
As at 26 May’17
BBB+, Stable
As at 22 Nov’17
AAAIS , Stable
PERPETUAL SUKUK
As at 14 Sep’18
RATING AGENCY RATING & OUTLOOK RATING DATE
THANK YOU
SIME DARBY PLANTATION INVESTOR RELATIONS
investor.relations@simedarbyplantation.com +(603) 7848 4000 http://www.simedarbyplantation.com/investor-relations