SIP IPEF Analyst presentation August 13, 2020 The Connection to - - PowerPoint PPT Presentation

Analyst presentation

August 13, 2020

The Connection to the world of Sustainable Tropical Agriculture 1

SIP IPEF

Summary

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Update expansion SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Peer review

SIPEF group – Company profile

The Connection to the world of Sustainable Tropical Agriculture

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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

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Continuous production

• Continuous crops

Diversified in product

• Palm oil : basic commodity for food (and recently

energy)

• Rubber : cyclic business - tire industry

Diversified in

• rigin
• Indonesia : leading producing country within Asian

market

• PNG : export oriented with strong agronomical basics

SIPEF group – Company profile

Worldwide

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group – Company profile

Indonesia

6

SIPEF group – Company profile

Papua New Guinea

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group – Company profile

Planted hectares summary 100% – 30 June 2020

The Connection to the world of Sustainable Tropical Agriculture

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2020 Indonesia PNG Ivory CoastHectares 100% % of total Group share % of total Palm 61 038 13 628 74 666 90% 69 151 90% Rubber 5 518 5 518 7% 4 980 7% Tea 1 786 1 786 2% 1 612 2% Bananas 794 794 1% 794 1% Other 31 31 0% 31 0% Total planted 68 343 13 628 825 82 795 100% 76 568 92% % of total 83% 16% 1% Group share 62 115 13 628 825

Summary

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Update expansion SIPEF group - Production & prices SIPEF group – Financial performance SIPEF Group - Peer review

• In the coming 40 years, mankind will have to produce more food than in the

previous 10 000 years put together

SIPEF group – Palm oil in the world

Palm oil in the world - Population growth

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• 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

SIPEF group – Palm oil in the world

Oil and fat consumption

11

67,32 72,58 27,55 18,29 54,95 26,07 15,15 49,47 29,93 59,43 55,77 25,52 15,57 35,54 21,46 14,04 39,05 25,86 10 20 30 40 50 60 70 80 EU-28 USA China India Indonesia Pakistan Nigeria Brazil World

Oil and fat consumption per capita (in Kg)

2018 2012

+55% Source: Oilworld

SIPEF group – Palm oil in the world

Palm oil in the world - Land input

The Connection to the world of Sustainable Tropical Agriculture

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• Increased demand for

meat/fat/processed foods

• Increased demand for biofuel
• Decreasing Agricultural land per

capita

• Disposable income growth in

developing countries

SIPEF group – Palm oil in the world

Palm oil in the world - Comparison to other oils

The Connection to the world of Sustainable Tropical Agriculture

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Resources used per vegetable oil:

SIPEF group – Palm oil in the world

Palm oil in the world - Vegetable oils

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Palm oil 16% Soya oil 21% Rape oil 11% Sunflower oil 9% Palm kernel and coconut oil 6% Other oils/animal fats 37%

Palm oil Soya oil Rape oil Sunflower oil Palm kernel and coconut oil Other oils/animal fats

1994/95: 93,1 million tonnes

Source: Oilworld

Palm oil 32% Soybean oil 24% Rapeseed oil 11% Sunflower oil 9% Palm kernel and coconut

• il

5% Others 19%

2019 : 234,7 million Ton

Palm oil Soybean oil Rapeseed oil Sunflower oil

SIPEF group – Palm oil in the world

Palm oil in the world - Palm oil production

15 Source: Oilworld

Indonesia 57% Malaysia 26% Thailand 4% Africa 2% Middle & South America 4% Other countries 7%

2019 Palm oil production Total of 75,6 Mn tonnes

Indonesia Malaysia Thailand Africa Middle & South America Other countries

SIPEF group – Palm oil in the world

Palm oil in the world - Sustainability

The Connection to the world of Sustainable Tropical Agriculture

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• Palm oil remains confronted with a European perception problem

based on

• Health issues
• No fat <-> moderate use of saturated fat
• Saturated fats – only 50% saturated and no transfats
• Environmental issues
• Deforestation – most efficient vegetable oil/hectare of land
• Sustainable Development Goals – Palm Oil covers the majority of it!

SIPEF group – Palm oil in the world

Palm oil in the world - Sources for deforestation

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group – Palm oil in the world

Palm oil in the world – Commodity commitment

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group – Palm oil in the world

Palm oil in the world – Global land use

19

SIPEF group – Palm oil in the world

Palm oil in the world – Land use of foods per 1000 kcal

20

SIPEF group – Palm oil in the world

Palm oil in the world - Sustainable palm oil

The Connection to the world of Sustainable Tropical Agriculture

21 3,05 Million Ha RSPO certified production area

500 1 000 1 500 2 000 2 500 3 000 3 500

RSPO Certified Ha (in KHa)

SIPEF group – Palm oil in the world

Palm oil in the world - Biodiesel use of major feedstock (Mn T)

The Connection to the world of Sustainable Tropical Agriculture

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2,80 4,32 4,34 5,34 7,37 6,85 7,07 8,06 7,64 9,19 9,78 10,74 11,39 1,22 2,16 3,47 4,08 5,30 6,97 9,06 10,16 8,62 10,76 11,47 14,61 17,62 4,12 5,02 5,89 6,38 6,23 6,20 6,30 7,21 6,96 6,84 6,94 6,69 6,52 1,43 1,82 2,55 2,71 3,67 4,57 5,50 5,93 6,35 7,62 8,26 9,46 10,16 0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00 40,00 45,00 50,00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Biodiesel use of major feedstock (Mn T)

Soya oil Palm oil Rape oil Other oils

SIPEF group – Palm oil in the world

Biodiesel worldwide

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31% 27% 19% 1% 7% 4% 10%

Biodiesel worldwide 2017 Total of 35,8 Mn tonnes

Palm oil Soya Rapeseed oil Sunflower oil Tallow Coconut oil Other oils and fats Used cooking oil Source: Oilworld

39% 25% 14% 1% 6% 0% 4% 11%

Biodiesel worldwide 2019 Total of 45,7 Mn tonnes

Palm Oil Soya Oil Rapeseed Oil Sunflower Oil Tallow Coconut oil Other oils & fats Used cooking oil

SIPEF group – Palm oil in the world

Palm oil use for biodiesel EU

24

Source: Oilworld

EU 26% NON EU 74%

2019: Palm oil use for Biodiesel Total of 17,6 Mn tonnes

EU NON EU

4,5 Mn tonnes 13,1 Mn tonnes

EU 36% Non EU 64%

2017 Palm oil use for Biodiesel Total of 11,7 Mn tonnes EU Non EU

4,2 Mn tonnes 7,4 Mn tonnes

Summary

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Update expansion SIPEF group - Production & prices SIPEF group – Financial performance SIPEF Group - Peer review

SIPEF group – Expansion

Strategy & expansion

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SIPEF group = 100.000 Ha planted

• Palmoil – Rubber – Bananas – Tea
• Indonesia – Papua New Guinea

Focus on core-business Focus on ‘Sustainable Agriculture’ (RSPO) Expansion of existing activities Acquisition of new investments Balanced leverage

SIPEF group – Expansion

Increase in Ha (100%)

27

10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 90.000 100.000 2005 2008 2016 2017 2018 2019 2023 2029 North Sum North Sum expansion Bengkulu Bengkulu expansion PNG PNG expansion Musi Rawas Dendy Marker Ivory Coast Ivory Coast expansion

48 093 Ha 56 811 Ha 69 439 Ha 78 213 Ha 80 540 Ha 82 968 Ha 91 568 Ha 92 407 Ha

SIPEF group – Expansion

Supply base (in hectares): own ha and outgrowers ha – 100%

The Connection to the world of Sustainable Tropical Agriculture

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82.968 84.985 87.542 90.244 91.568 91.747 92.220 92.385 92.407 92.407 92.407 21.370 22.208 22.755 23.029 23.029 23.029 23.029 23.029 23.029 23.029 23.029 20.000 40.000 60.000 80.000 100.000 120.000 140.000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Own ha Outside ha

SIPEF group – Expansion

100% CPO production (including plasma and outgrowers – NO FFB)

29

2029 Own: 481 Kton Outg: 92 Kton Total: 573 Kton

100.000 200.000 300.000 400.000 500.000 600.000 700.000

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Own Outgrowers

The Connection to the world of Sustainable Tropical Agriculture

Musi Rawas Projects: Area Map

SIPEF group – Expansion

South Sumatra – full scope of development June 2020

The Connection to the world of Sustainable Tropical Agriculture

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Latest update Musi rawas Dendymarker Total Total Planted / Cleared 12 958 8 986 21 944 Identified 9 847 1 607 11 454 Potential development 22 805 10 594 33 399 INTI 19 004 7 813 26 817 PLASMA 3 801 2 781 6 582

SIPEF group – Expansion

Musi Rawas – progress June 2020

The Connection to the world of Sustainable Tropical Agriculture

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MUSI RAWAS Acquired Ha Secured Ha PT AKL 4.990 4.591 92% PT ARU 3.672 2.770 75% PT AMR 7.823 5.597 72% Total OLD 16.485 12.958 79% Potential Ha 18.507 89% AMR III 33 0% AMRS 217 0% AKLE 143 0% Total NEW 393 0% Potential Ha 4.298 9% GRAND TOTAL 16.879 12.958 77% Potential HA 22.805 22.805 100% % of total 74% 57%

100.000 200.000 300.000 400.000 500.000 600.000 700.000 800.000 900.000 1.000.000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 MT FFB

South Sumatra Total Crop (Inti & Plasma): 2020-2030

AKL ARU AMR DIL

The Connection to the world of Sustainable Tropical Agriculture

Crop & Processing Requirements: Based on LTBP 2020-2030.

DILPOM 20-60 AMRPOM 45-90 AKLPOM 45

195 T/Hr Capacity

940,000 MT FFB

Summary

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Update expansion SIPEF group - Production & prices SIPEF group – Financial performance SIPEF Group - Peer review

SIPEF group - Production & prices

Group production palm oil – June 2020

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Palm Oil June 2020 June 2019 Variance Own Tolan Tiga Group 31 654 31 438 0,69% Umbul Mas Wisesa Group 17 593 18 300

• 3,86%

Agro Muko Group 42 630 35 723 19,33% South Sumatra Group 6 764 5 548 21,92% Hargy Oil Palms 32 253 37 069

• 12,99%

Total own 130 894 128 078 2,20% Outgrowers Tolan Tiga Group 158

• Umbul Mas Wisesa Group

76 61 24,59% Agro Muko Group 1 940 1 496 29,68% South Sumatra Group 689 389 77,12% Hargy Oil Palms 28 611 23 672 20,86% Total outgrowers 31 474 25 618 22,86% Total Palm Oil 162 368 153 696 5,64%

SIPEF group - Production & prices

Group production rubber – June 2020

The Connection to the world of Sustainable Tropical Agriculture

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Rubber June 2020 June 2019 Variance Own Tolan Tiga Group 270 384

• 29,69%

Melania 1 583 1 617

• 2,10%

Agro Muko 934 1 067

• 12,46%

Total own 2 787 3 068

• 9,16%

Outgrowers Tolan Tiga Group 259 296

• 12,50%

Total Rubber 3 046 3 364

• 9,45%

SIPEF group - Production & prices

Group production tea & bananas – June 2020

The Connection to the world of Sustainable Tropical Agriculture

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Tea June 2020 June 2019 Variance Melania 1 478 1 312 12,65% Total Tea 1 478 1 312 12,65% Bananas June 2020 June 2019 Variance Azaguie 1 2 670 2 505 6,59% Azaguie 2 4 327 4 311 0,37% Agboville 4 552 4 804

• 5,25%

Motobe 4 620 5 108

• 9,55%

Total Bananas 16 169 16 728

• 3,34%

SIPEF group - Production & prices

Bull & Bear

The Connection to the world of Sustainable Tropical Agriculture

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Rating Bullish inputs Bearish inputs Palm Oil

Aug 685 Sept 685 Oct 665 ND 660 JFM 665 AMJ 670

Neutral

• Indo & Mal prod is slightly lower than expected. Our BBC shows

a flat production instead of the seasonal increase.

• July and Aug prod will show the trend.
• Demand, particular food, has been very strong to replenish low

destination stocks. Triggering lower stocks and inverted markets.

• EU biodiesel demand better than expected due to high

rapeseed oil prices. Also Brasil B12 program seems to be still running.

• Strong soybeans & soybean oil exports from Latam, very low

stocks.

• Weak US dollar, good for most US denominated commodities.
• How much will the Chinese State Reserve buy?
• Covid – 19: turned the global economy in a never foreseen recession. Impact not

felt to the full extent.

• Still a lot of uncertainty how Covid-19 will impact in the next 12 months…..
• Permanent demand loss due to lockdown in March/May period…estimated to be 2

to 3 mln mt.

• B30 program under serious financial constraints….the CPO Fund will run out of

money in Q4 at current POGO spread. Or will the Indo government find an alternative manner to finance the biodiesel program (big risk to see an increase in export levy if price rise).

• Fantastic US growing conditions, increasing yield, expectation of a big crop….Aug

weather will be important how big the crop will be.

• There is a still a massive divergence on the palm oil crop assessment for the next 5

months…..if the big crop side is right, we will see a significant stocks build.

• There is still a big (Chinese) speculator long position, when will they take profit?

Rubber

RSS3 1558 SIR10 1237

Neutral

• Low price environment
• Futures rallied (but no idea why!)
• Automobile industry hit by minimum 15% decline, based on Michelin’s projection.

Likely a bigger decline globally.

• No physical activity as stocks at factories still filled.

Tea Neutral

• Low price environment
• Kenyan prod still good and a lot of auction volume left unsold
• Pakistan also suffering from Corona lockdown

SIPEF group - Production & prices

CPO prices CIF Rotterdam 2019-2020

The Connection to the world of Sustainable Tropical Agriculture

39 450 500 550 600 650 700 750 800 850 J F M A M J J A S O N D

Crude Palm Oil in $/mt CIF Rotterdam

2019 2020

Source: Oilworld

SIPEF group - Production & prices

Spread crude palm oil – soybean oil

40

400 600 800 1000 1200 1400 1600

2010M01 2010M03 2010M05 2010M07 2010M09 2010M11 2011M01 2011M03 2011M05 2011M07 2011M09 2011M11 2012M01 2012M03 2012M05 2012M07 2012M09 2012M11 2013M01 2013M03 2013M05 2013M07 2013M09 2013M11 2014M01 2014M03 2014M05 2014M07 2014M09 2014M11 2015M01 2015M03 2015M05 2015M07 2015M09 2015M11 2016M01 2016M03 2016M05 2016M07 2016M09 2016M11 2017M01 2017M03 2017M05 2017M07 2017M09 2017M11 2018M01 2018M03 2018M05 2018M07 2018M09 2018M11 2019M01 2019M03 2019M05 2019M07 2019M09 2019M11 2020M01 2020M03 2020M05 2020M07

Spread CPO - Soybean oil

CPO Soybean oil

Source: Worldbank

SIPEF group - Production & prices

Rubber prices CIF Rotterdam 2019-2020

The Connection to the world of Sustainable Tropical Agriculture

1 200 1 300 1 400 1 500 1 600 1 700 1 800 1 900 2 000 J F M A M J J A S O N D

RSS3 in $/mt FOB Singapore

2019 2020

Source: Worldbank

41

Markets, sales prices & productions

Tea prices CIF Rotterdam 2019-2020

The Connection to the world of Sustainable Tropical Agriculture

1 750 1 850 1 950 2 050 2 150 2 250 2 350 2 450 2 550 2 650 J F M A M J J A S O N D

Tea in $/mt average auction Mombasa

2019 2020

Source: Worldbank

42

Summary

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Update expansion SIPEF group - Production & prices SIPEF group – Financial performance SIPEF Group - Peer review

SIPEF group – Financial performance

Sales – consolidated gross margin

44

93 847 4 938 2 247 11 443 100 229 3 116 2 922 10 943

• 20 000

20 000 40 000 60 000 80 000 100 000 120 000 Palm Rubber Tea Bananas

2019 Sales 2019 Gross Margin 2020 Sales 2020 Gross Margin

13,6% 19,8%

• -7,1%
• 48,1%
• 24,7%
• 17,8%

15,8% 16,9%

SIPEF group – Financial performance

Gross margin – Results before tax (management presentation)

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In KUSD (condensed) June 2020 June 2019 %change Gross margin per product Palm 19 823 12 748 7 075 Rubber

• 1 498
• 350
• 1 148

Tea

• 519
• 555

36 Bananas and flowers 1 844 1 806 38 Total gross margin 19 650 13 649 6 001 Net general & administrative expenses

• 15 142
• 15 929

787 Other operating income/(charges) 113 203

• 90

Financial income/(charges)

• 2 247
• 2 016
• 231

Discounting Sipef-CI 613 845

• 232

Exchange differences

• 519
• 478
• 41

Profit before tax 2 468

• 3 725

6 193

SIPEF group – Financial performance

Net profit after tax (management presentation)

The Connection to the world of Sustainable Tropical Agriculture

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In KUSD (condensed) June 2020 June 2019 %change Profit before tax 2 468

• 3 725

6 193 Tax expense

• 1 686
• 412
• 1 274

Effective tax rate

• 68,3%

11,1%

• 79,4%

Result after tax 782

• 4 137

4 919 Share of associated companies

• 578
• 883

305 Profit after tax 204

• 5 020

5 224

SIPEF group – Financial performance

Consolidated balance sheet (management presentation)

The Connection to the world of Sustainable Tropical Agriculture

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In KUSD (management presentation) 30/06/2020 31/12/2019 Biological assets (depreciated costs) - bearer plants 310 134 306 342 Goodwill 104 782 104 782 Other fixed assets 361 497 365 412 Receivables > 1 year 15 055 13 442 Net current assets, net of cash 89 385 94 013 Net cash position

• 165 569
• 164 623

Total net assets 715 284 719 368 Shareholders' equity, group share 625 786 628 686 Non controlling interest 35 240 34 325 Provisions and deferred tax liabilities 54 258 56 358 Total net liabilities 715 284 719 368

The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Financial performance Inventory overview

5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 50.000

1 2 3 4 5 6 7 8 9 10 11 12

Tons of CPO

CPO inventory overview

2019 2020

48

The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Financial performance Covenant testing

• Financial covenant per 30/06/2020 = 3,25x → OK!

Net debt (IFRS definition) June 2020

• 165 569

7-12m19 1-6m20 12m period Operating result 7 018 4 621 11 639 Exceptional items Recurring operating result 7 018 4 621 11 639 Depreciation 22 583 21 371 43 954 REBITDA 29 601 25 992 55 593 Minus minorities recurring

• 416
• 916
• 1 332

REBITDA group share 29 185 25 076 54 261 Net Senior Leverage 3,0513

49

The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Financial performance Cash flow (management presentation)

Cash flow in KUSD June 2020 Cash flow from operations before working capital 26 416 Working capital movements 160 Taxes paid

• 3 821

Cash flow from operations (a) 22 755 Cash flow from investing

• 21 948

Cash flow from desinvesting 1 344 Cash flow from investing in VBS

• 1 609

Cash flow from sales Sipef CI 1 371 Investing activities (b)

• 20 842

Free cash flow (a+b) 1 913

50

The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Financial performance Cash flow (management presentation)

Cash flow in KUSD (continued) June 2020 Free cash flow (a+b) 1 913 Dividends paid by subsidiaries to minorities

• 516

Interest received/paid

• 2 343

Net increase/decrease in NFP

• 946

Net financial position in KUSD

June 2020 NFP opening position

• 164 623

Net increase/decrease in cash

• 946

NFP closing position

• 165 569

51

SIPEF group – Financial performance

Value per hectare

52

Sensitivity 30/06/2020 Stock price @ USD per hectare 30,00 5 796 40,00 7 289 50,00 8 781 60,00 10 274 70,00 11 767 80,00 13 259 46,50 (dd 11/08/2020) 8 259

SIPEF group – Financial performance

Prospects

53

✓ Production

➢ Prospects for palm oil production for the third quarter are rather poor (likely affected by last year’s long drought); ➢ The previously announced 10% increase in annual volumes will probably not be achieved; ➢ The Pestalotiopsis fungus is expected to continue to affect rubber activities negatively in the second half; ➢ Expectations for tea and banana production for second half of the year remain slightly positive.

✓ Markets

➢ General production prediction in Indonesia is rather poor which triggered significant stock reductions in palm oil → supported rally in palm oil price in June/July; ➢ How will B30 biodiesel blending program evolve in coming months? ➢ Rubber very dependent on automobile industry which is highly effected by the pandemic; ➢ Tea production is declining seasonally which should move prices up moderately.

SIPEF group – Financial performance

Prospects

54

✓ Cash flow and expansion

➢ Investment policy remains to be fully focused on development of palm oil activities in South Sumatra; ➢ Steadily continuing on replanting of own palm plantation areas in Dendymarker; ➢ Group remains faithful to its intention to renew the old Dendymarker plantings and to develop Musi Rawas concessions despite the uncertainties that covid-19 brings; ➢ Due to the persistently low prices for natural rubber and the lack of prospects for the future, specific measures are also being worked out for a restructuring of the rubber activities in the SIPEF group

✓ Result

➢ 76% of expected production volumes have been sold at an average price of USD 692 CIF Rotterdam, premiums included. Production volumes gradually brought onto the market; ➢ Considering the already realized sales of palm oil and based on the recent market prices, the Group expects a return to a recurring profit position for the year 2020

Summary

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SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Update expansion SIPEF group - Production & prices SIPEF group – Financial performance SIPEF Group - Peer review

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.

The Connection to the world of Sustainable Tropical Agriculture

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Peer review

Principle assumptions

• Benchmark of main industrial competitors
• Age profile based on own ageing interpretation
• Market capitalization is calculated based on the average exchange rate & average share price of

the year

• Benchmark based on own CPO productions of competitors:
• Representative sample of comparable industry competitors (2018): 31,9%
• Industrial comparable companies (50%)

The Connection to the world of Sustainable Tropical Agriculture

57 Tons CPO own production benchmark (2018) 11.605.720 Worldwide production (Oilworld 2018) 72.875.000

Peer review

Own planted Oil Palm Hectares in KHa (2018)

The Connection to the world of Sustainable Tropical Agriculture

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37 39 39 66 84 91 96 126 132 144 180 218 174 214 230 251 339 394 600 72 R.E.A. Holdings MP Evans Socfinasia Anglo Eastern Plantations SIPEF Sampoerna Agro Socfinaf London Sumatra Indon Eagle High Plantations Bumitama Genting Plantations IOI Corporation First Resources Kuala Lumpur Kepong Astra Agro Lestari Wilmar International Salim Ivomas Pratama Felda Global Ventures Golden Agri-Resources Sime Darby Plantation Integrated Sipef 2017 2018 Var % Total 3.546 3.528

• 0,5%

Sipef 69,30 71,50 3,2%

Peer review

Age Profile: Average age planted hectares (2018)

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7,0 9,4 9,8 10,5 10,7 11,0 11,0 11,7 13,8 14,5 15,3 16,0 11,0 12,1 12,8 14,0 14,3 15,0 16,0 10,3 MP Evans Eagle High Plantations Bumitama SIPEF Anglo Eastern Plantations Genting Plantations First Resources Sampoerna Agro Wilmar International Socfinaf Kuala Lumpur Kepong Sime Darby R.E.A. Holdings IOI Corporation Felda Global Ventures Socfinasia Salim Ivomas Pratama Astra Agro Lestari London Sumatra Indon Golden Agri-Resources Plantation Integrated Sipef 2017 2018 Var % Average 11,97 12,31 2,9% Sipef 10,26 10,32 0,6%

Peer review

FFB Yield – MT/ha (2018)

60

The Connection to the world of Sustainable Tropical Agriculture

12,3 14,9 15,0 17,4 18,2 18,6 18,9 19,3 20,4 21,8 23,1 24,4 15,9 16,9 20,5 21,6 21,6 22,5 23,6 22,2 Eagle High Plantations Socfinaf Sampoerna Agro Salim Ivomas Pratama Felda Global Ventures London Sumatra Indon Genting Plantations Anglo Eastern Plantations First Resources MP Evans Bumitama Sime Darby Wilmar International Kuala Lumpur Kepong Astra Agro Lestari SIPEF Golden Agri-Resources R.E.A. Holdings IOI Corporation Socfinasia Plantation Integrated Sipef

Sipef including the South Sumatra Group as of 2018

2017 2018 Var % Average 17,8 19,5 9,2% Sipef 23,9 22,2

• 6,9%

Peer review

Extraction rate from FFB to CPO (2018)

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20,3% 20,7% 21,3% 21,3% 22,0% 22,1% 22,5% 22,9% 22,9% 22,9% 23,0% 23,5% 20,0% 20,5% 20,9% 21,0% 21,8% 21,9% 22,0% 23,4% Wilmar International Astra Agro Lestari Felda Global Ventures Anglo Eastern Plantations IOI Corporation Sime Darby Genting Plantations Sampoerna Agro Kuala Lumpur Kepong Golden Agri-Resources Salim Ivomas Pratama Socfinaf Bumitama R.E.A. Holdings First Resources Eagle High Plantations Socfinasia London Sumatra Indon SIPEF MP Evans Plantation Integrated Sipef 2017 2018 Var % Average 21,9% 21,8%

• 0,4%

Sipef 23,4% 23,4%

• 0,2%

Peer review

CPO Yield – MT/ha (2018)

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2,82 3,20 3,29 3,84 3,88 4,00 4,33 4,40 4,51 4,54 5,40 5,59 3,46 3,51 4,31 4,32 4,72 4,93 4,93 5,19 Eagle High Plantations Sampoerna Agro Socfinaf Felda Global Ventures Salim Ivomas Pratama Anglo Eastern Plantations Genting Plantations London Sumatra Indon Sime Darby Wilmar International First Resources Astra Agro Lestari Bumitama MP Evans Kuala Lumpur Kepong Golden Agri-Resources IOI Corporation SIPEF R.E.A. Holdings Socfinasia Plantation Integrated Sipef 2017 2018 Var % Average 3,91 4,26 8,9% Sipef 5,58 5,19

• 7,0%

Peer review

Market Cap in MUSD (2018)

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163 294 381 306 363 448 538 591 883 1.676 1.929 1.947 558 1.415 2.872 6.594 7.060 9.081 14.804 705 R.E.A. Holdings Socfinaf Socfinasia Sampoerna Agro Anglo Eastern Plantations Eagle High Plantations MP Evans Salim Ivomas Pratama London Sumatra Indon SIPEF Bumitama Felda Global Ventures Astra Agro Lestari Genting Plantations First Resources Golden Agri-Resources Kuala Lumpur Kepong IOI Corporation Sime Darby Wilmar International Plantation Integrated Sipef 2017 2018 Var % Total 2.765 2.630

• 4,9%

Sipef 750 705

• 6,0%

Peer review

Dividend Yields (based on average market cap 2018)

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64

0,0% 0,0% 0,4% 0,7% 1,3% 1,5% 1,8% 2,0% 2,7% 2,9% 4,0% 5,5% 0,0% 1,8% 2,6% 3,2% 3,3% 4,5% 1,0% Eagle High Plantations R.E.A. Holdings Salim Ivomas Pratama Felda Global Ventures Anglo Eastern Plantations Socfinaf SIPEF Genting Plantations London Sumatra Indon MP Evans Kuala Lumpur Kepong First Resources Golden Agri-Resources Astra Agro Lestari Sampoerna Agro Sime Darby Wilmar International Bumitama IOI Corporation Socfinasia Plantation Integrated Sipef

Peer review

Price Earning Ratio (based on average market cap 2018)

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65

* Not included as irrelevant (profit close to break-even or loss for the year)

0,0 0,0 0,0 0,0 0,0 11,7 12,5 16,2 16,6 25,4 31,8 47,2 52,4 9,3 13,1 21,3 35,1 31,0 Eagle High Plantations * R.E.A. Holdings * Felda Global Ventures * Salim Ivomas Pratama * Golden Agri-Resources * Sampoerna Agro * MP Evans * IOI Corporation Bumitama Socfinasia Wilmar International First Resources Astra Agro Lestari Sime Darby London Sumatra Indon SIPEF Anglo Eastern Plantations Kuala Lumpur Kepong Genting Plantations Socfinaf Plantation Integrated Sipef

Peer review

Net financial position/Equity Ratio (2018)

66

* Cash surplus at the end of the year

The Connection to the world of Sustainable Tropical Agriculture

• 20,0%
• 20,0%

1,5% 2,9% 24,0% 28,5% 42,6% 54,7% 70,0% 72,5% 83,2% 141,7% 24,4% 37,6% 43,9% 50,8% 63,2% 65,4% 83,7% 17,9% Anglo Eastern Plantations* London Sumatra Indon* MP Evans Socfinasia SIPEF Astra Agro Lestari Kuala Lumpur Kepong First Resources Sime Darby Genting Plantations Salim Ivomas Pratama IOI Corporation Bumitama Felda Global Ventures Golden Agri-Resources Sampoerna Agro R.E.A. Holdings Socfinaf Wilmar International Eagle High Plantations Plantation Integrated Sipef

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