SIPEF Consumer Goods Seminar Degroof Petercam - Brussels June 20, - - PowerPoint PPT Presentation

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SIPEF Consumer Goods Seminar Degroof Petercam - Brussels June 20, - - PowerPoint PPT Presentation

May 08, 2023 830 likes •1.47k views

SIPEF Consumer Goods Seminar Degroof Petercam - Brussels June 20, 2019 The Connection to the world of Sustainable Tropical Agriculture 1 Summary 1. SIPEF Group Company profile 2. SIPEF Group Palm oil in the world 3. SIPEF Group - Expansion

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SLIDE 1

SIPEF

Consumer Goods Seminar Degroof Petercam - Brussels

June 20, 2019

The Connection to the world of Sustainable Tropical Agriculture 1

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SLIDE 2

Summary

  • 1. SIPEF Group Company profile
  • 2. SIPEF Group Palm oil in the world
  • 3. SIPEF Group - Expansion
  • 4. SIPEF Group – Productions & prices
  • 5. SIPEF Group – Financial performance
  • 6. Peer review

The Connection to the world of Sustainable Tropical Agriculture 2

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SLIDE 3

SIPEF group - Company profile

The Connection to the world of Sustainable Tropical Agriculture

3

Agriculture

  • 1st segment of the supply chain - commodities

Tropical

  • Recent industrialised countries

Sustainable

  • Audited certifications

Connection

  • Publicly quoted
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SLIDE 4

SIPEF group - Company profile

The Connection to the world of Sustainable Tropical Agriculture

4

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
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SLIDE 5

SIPEF group - Company profile

Worldwide

The Connection to the world of Sustainable Tropical Agriculture

5

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SLIDE 6

SIPEF group - Company profile

Indonesia

6

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SLIDE 7

SIPEF group - Company profile

Papua New Guinea

The Connection to the world of Sustainable Tropical Agriculture

7

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SLIDE 8

SIPEF group - Company profile

Planted hectares summary 100% – 31 December 2018

The Connection to the world of Sustainable Tropical Agriculture

8

Palm Rubber Tea Bananas Other Total % Group share Indonesia 58 035 6 275 1 763 66 073 82% 59 572 PNG 13 687 13 687 17% 13 687 Ivory coast 749 31 780 1% 780 Total 71 722 6 275 1 763 749 31 80 540 100% 74 039 % 89% 8% 2% 1% 0% 100% Group share 66 291 5 376 1 591 749 31 74 039

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Summary

  • 1. SIPEF Group Company profile
  • 2. SIPEF Group Palm oil in the world
  • 3. SIPEF Group - Expansion
  • 4. SIPEF Group – Productions & prices
  • 5. SIPEF Group – Financial performance
  • 6. Peer review

The Connection to the world of Sustainable Tropical Agriculture 9

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SLIDE 10
  • 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

The Connection to the world of Sustainable Tropical Agriculture

10

  • 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

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SLIDE 11

SIPEF group - Palm oil in the world

Oil and fat consumption

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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

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SLIDE 12

SIPEF group - Palm oil in the world

Palm oil in the world - Land input

The Connection to the world of Sustainable Tropical Agriculture

12

  • Increased demand for

meat/fat/processed foods

  • Increased demand for biofuel
  • Decreasing Agricultural land per

capita

  • Disposable income growth in

developing countries

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SLIDE 13

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

13

Resources used per vegetable oil:

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SLIDE 14

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

Palm oil 32% Soya oil 24% Rapeseed oil 11% Sunflower oil 8% Palmkernel oil + coconut oil 5% Other oils/animal fats 20%

2018: 231 million tonnes

Palm oil Soya oil Rapeseed oil Sunflower oil Palmkernel oil + coconut oil Other oils/animal fats Source: Oilworld

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SLIDE 15

SIPEF group - Palm oil in the world

Palm oil in the world - Palm oil production

15

Indonesia 57% Malaysia 27% Thailand 4% Middle & South America 6% Africa 2% Other countries 3%

2018 Palm oil production Total of 72,61 Mn tonnes

Indonesia Malaysia Thailand Middle & south america Africa Oceania Other countries

Source: Oilworld

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SLIDE 16

SIPEF group - Palm oil in the world

Palm oil in the world - Palm oil consumption

The Connection to the world of Sustainable Tropical Agriculture

16 11% 2% 2% 6% 65% 14% 0%

2014/15 World palm oil consumption per region

Europe Russia North America South America Asia and the middle east Africa Oceania

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SLIDE 17

SIPEF group - Palm oil in the world

Palm oil in the world - Sustainability

The Connection to the world of Sustainable Tropical Agriculture

17

  • 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!
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SLIDE 18

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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SLIDE 19

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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SLIDE 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

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2,81 Million Ha RSPO certified production area

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SLIDE 21

SIPEF group - Palm oil in the world Number of certified production and/or operational units

The Connection to the world of Sustainable Tropical Agriculture

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SLIDE 22

SIPEF group - Palm oil in the world

Palm oil in the world - Biodiesel in Europe

The Connection to the world of Sustainable Tropical Agriculture

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  • Approval of the Delegated Act by the EU-commission
  • Renewable energy from 20% in 2020 to 32% by 2030
  • Renewable energy in transport from 10% in 2020 to 14% in 2030
  • Conventional biofuels will be optional and limited to 7% maximum
  • Palm Oil is a defined to have high ILUC-risk (in high-carbon stock land)
  • 2019 consumption level capped till 2023, gradual reduction by 2030
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SLIDE 23

SIPEF group - Palm oil in the world

Biodiesel worldwide

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35% 26% 17% 1% 7% 4% 10%

Biodiesel worldwide 2018 Total of 40,7 Mn tonnes

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

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

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SLIDE 24

SIPEF group - Palm oil in the world

Palm oil use for biodiesel EU

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EU 27% NON EU 73%

2018 Palm oil use for Biodiesel Total of 14,2 Mn tonnes

EU NON EU 3,8 Mn tonnes 10,4 Mn tonnes EU 35% Non EU 65%

2017 Palm oil use for Biodiesel Total of 11,0 Mn tonnes

EU Non EU 3,8 Mn tonnes 7,2 Mn tonnes Source: Oilworld

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Summary

  • 1. SIPEF Group Company profile
  • 2. SIPEF Group Palm oil in the world
  • 3. SIPEF Group - Expansion
  • 4. SIPEF Group – Productions & prices
  • 5. SIPEF Group – Financial performance
  • 6. Peer review

The Connection to the world of Sustainable Tropical Agriculture 25

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SLIDE 26

SIPEF group - Expansion

Strategy & expansion

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group= 100.000 Ha planted (group’ share)

  • 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

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SIPEF group - Expansion

Planted area (in hectares) – 100%

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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 2023 2028 North Sum North Sum expansion Bengkulu Bengkulu expansion PNG PNG expansion Musi Rawas Dendy Marker Ivory Coast Ivory Coast expansion

48 093Ha 56 811Ha 69 439 Ha 78 213 Ha 80 540Ha 94 265Ha 94 470Ha

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SLIDE 28

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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80 540 87 408 91 203 93 296 94 099 94 265 94 331 94 329 94 441 94 462 94 470 19 656 20 538 21 286 21 652 21 786 21 786 21 786 21 786 21 786 21 786 21 786 20 000 40 000 60 000 80 000 100 000 120 000 140 000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Own ha Outside ha

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SLIDE 29

SIPEF group - Expansion

Planted hectares and production of CPO (sale of FFB not included) (BI)

The Connection to the world of Sustainable Tropical Agriculture

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100% 110% 120% 130% 140% 150% 160% 170% 180% BI hectares BI production

+ 74% + 23%

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SLIDE 30

SIPEF group - Expansion

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

The Connection to the world of Sustainable Tropical Agriculture

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100.000 200.000 300.000 400.000 500.000 600.000 700.000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Outgrowers Own

2028 Own: 480 Kton Outg: 119 Kton Total: 599 Kton

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SLIDE 31

The Connection to the world of Sustainable Tropical Agriculture

SIPEF group - Expansion Musi Rawas expansion

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SLIDE 32

SIPEF group - Expansion

Musi Rawas – South Sumatra summary of project status

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Latest update Musi Rawas Musi Rawas II Dendymarker DIL Newplant Total

Izin Lokasi HGU

24.607 17.793 42.400

Expansion Izin Lokasi

8.594 8.594

TOTAL HGU/IZIN

24.607 8.594 17.793 50.994

Planted /Cleared

11.111 8.986 20.097

Identified

7.396 4.297 1.604 13.297

Potential development

18.507 4.297 8.986 1.604 33.394

INTI

15.423 3.581 6.205 1.604 26.812

PLASMA

3.085 716 2.781 6.582

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SLIDE 33

SIPEF group - Expansion

Musi Rawas – progress April 2019

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MUSI RAWAS Acquired Ha Secured Ha

PT AKL

4.746 4.328 91%

PT ARU

3.395 2.325 68%

PT AMR

7.658 4.458 58%

Total OLD

15.799 11.111 70%

Potential Ha

18.507 85%

AMR III

33 0%

AMRS

121 0%

AKLE

92 0%

Total NEW

246 0%

Potential Ha

4.297 6%

GRAND TOTAL

16.045 11.111 69%

Potential HA

22.804 22.804 100%

% of total

70% 49%

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SLIDE 34

SIPEF group - Expansion

Musi Rawas – progress April 2019

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Compensation Ha Cleared/Planted Ha Planted Cleared Planted/ Area YTD 2018 Apr/19 TOTAL YTD 2018 Apr/19 Apr/19 TOTAL compensated AKL 4.077 92 4.169 3.646 54 78 3.778 90,6% ARU 2.861 23 2.884 1.816 105 38 1.959 67,9% AMR 6.226 195 6.421 3.640 236 268 4.144 64,5% AMR 3 23 10 33 AMR S 39 82 121 AKL E 50 42 92 Plasma 2.266 59 2.325 1.171 59 1.230 52,9% TOTAL 15.542 503 16.045 10.273 454 384 11.111 69,2%

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SLIDE 35

Summary

  • 1. SIPEF Group Company profile
  • 2. SIPEF Group Palm oil in the world
  • 3. SIPEF Group - Expansion
  • 4. SIPEF Group – Productions & prices
  • 5. SIPEF Group – Financial performance
  • 6. Peer review

The Connection to the world of Sustainable Tropical Agriculture 35

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SLIDE 36

SIPEF group – Productions & prices

Production Palm Oil April 2019

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Palm Oil April 2019 April 2018 Variance Own Tolan Tiga Group 20 332 22 247

  • 8,61%

Umbul Mas Wisesa Group 12 245 13 237

  • 7,49%

Agro Muko Group 23 421 26 716

  • 12,33%

South Sumatra Group 3 522 1 251 181,53% Hargy Oil Palms 23 581 27 009

  • 12,69%

Total own 83 101 90 460

  • 8,13%

Outgrowers Umbul Mas Wisesa Group 43

  • Agro Muko Group

978 1 031

  • 5,17%

South Sumatra Group 146 64 128,13% Hargy Oil Palms 14 822 15 437

  • 3,98%

Total outgrowers 15 989 16 532

  • 3,28%

Total Palm Oil 90 088 106 992

  • 7,39%
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SLIDE 37

SIPEF group – Productions & prices Production Rubber April 2019

The Connection to the world of Sustainable Tropical Agriculture

37

Rubber April 2019 April 2018 Variance Own Tolan Tiga Group 547 741

  • 26,18%

Melania 1 245 1 336

  • 6,78%

Agro Muko 760 921

  • 17,50%

Total Rubber 2 551 2 998

  • 14,89%
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SLIDE 38

SIPEF group – Productions & prices Production Tea & Bananas April 2019

The Connection to the world of Sustainable Tropical Agriculture

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Tea April 2019 April 2018 Variance Melania 925 821 12,64% Total Tea 925 821 12,64% Bananas April 2019 April 2018 Variance Azaguie 1 1 864 1 681 10,89% Azaguie 2 3 499 3 279 6,71% Agboville 2 986 2 894 3,18% Motobe 3 413 2 204 54,85% Total Bananas 11 762 10 058 16,94%

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SLIDE 39

SIPEF group – Productions & prices

Bull & Bear

The Connection to the world of Sustainable Tropical Agriculture

39

Rating Bullish inputs Bearish inputs

Palm Oil

July 500 Aug 505 Sept 510 OND 525 Neutral

PALM SUPPLY & DEMAND

  • Palm oil exports and local (bio) demand has been good despite high

destination stocks to traditional market. Low prices attract demand.

  • Indo biodiesel blending of 20% is reached, looking to increase.
  • Production is expected to take a rest, but impact needs to be

assessed.

  • 2019 demand for palm will surpass supply with approximately

3 mln mt SOY MARKET - PRICING

  • If June will continue to rain heavily in the US Midwest, planting could

be severely reduced….but it is a big IF as soybeans are a resilient crop and can recover well.

  • Corn and wheat rallied 20% due to wet planting conditions, soybeans

to a lesser extent.

  • Palm oil is well priced against liquid oil but slightly less against gasoil.

STOCK SITUATION IN ASIA

  • Following great production in 2018 we still have high stocks in Malaysia, Indo is finally

under better control

  • Stocks are decreasing, but window shorter as we are about the enter new production

cycle

  • High stocks in destinations as they bought into the low prices, strongly discounted on the

spot during Q4 2018

  • Most plantations poorly sold due to low price environment.

CHINA-US TRADE WAR – EXTERNAL MACRO

  • China/US trade war still having a big impact on US soy market, recent tweets by Trump

took soybeans to a 12-year low

  • Strong dollar has been bearish commodities…but did we experience the turnaround?
  • Petro/gasoil dropped 15% in the last few weeks, hurting the POGO spread
  • Brazil soybean crop became better after harvest.
  • US planting of corn/wheat massively delayed by wet fields, could lead to more soybean

planting…..unless June stays wet.

  • African Swine Flu in China reduces appetite for soybeans
  • US aid package of $16 billion could stimulate soybean planting

Rubber

RSS3 1814 SIR10 1529 Neutral

  • Hot & dry weather reduced Thai production
  • Tripartite reducing exports has a positive effect so far but can kick

back.

  • Fusicoccum leaf disease impact could come into play, particularly in

Sumatra

  • S&D getting in more balance, but still high stocks
  • Customers very lackluster, cash trading below futures, do not believe in the rally.

Tea

Neutral at best

  • The short window that long rains in Kenya were delayed, could

impact crop, but was short-lived

  • Kenyan production continues to outperform with add capacity build to overcome the

peak production

  • Pakistan has depreciated the local rupee.
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SLIDE 40

SIPEF group – Productions & prices

CPO prices CIF Rotterdam 2018-2019

The Connection to the world of Sustainable Tropical Agriculture

40 450 500 550 600 650 700 750 J F M A M J J A S O N D Crude Palm Oil in $/mt CIF Rotterdam 2018 2019

Source: Oilworld ∆ 145 USD/ton

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SLIDE 41

SIPEF group – Productions & prices

Spread crude palm oil – soybean oil

The Connection to the world of Sustainable Tropical Agriculture

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Source: Worldbank

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

Spread CPO - Soybean oil

CPO Soybean oil

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SLIDE 42

SIPEF group – Productions & prices

Rubber prices CIF Rotterdam 2018-2019

The Connection to the world of Sustainable Tropical Agriculture

42 1 300 1 400 1 500 1 600 1 700 1 800 J F M A M J J A S O N D RSS3 in $/mt FOB Singapore 2018 2019

Source: Worldbank

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SLIDE 43

SIPEF group – Productions & prices

Tea prices CIF Rotterdam 2018-2019

The Connection to the world of Sustainable Tropical Agriculture

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Source: Worldbank

2 000 2 200 2 400 2 600 2 800 3 000 3 200 J F M A M J J A S O N D Tea in $/mt Average auction Mombasa 2018 2019

Source: Worldbank

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SLIDE 44

Summary

  • 1. SIPEF Group Company profile
  • 2. SIPEF Group Palm oil in the world
  • 3. SIPEF Group - Expansion
  • 4. SIPEF Group – Productions & prices
  • 5. SIPEF Group – Financial performance
  • 6. Peer review

The Connection to the world of Sustainable Tropical Agriculture 44

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SLIDE 45

SIPEF group – Financial performance

Consolidated balance sheet (management presentation)

The Connection to the world of Sustainable Tropical Agriculture

45

In KUSD (condensed) DEC 2018 DEC 2017 Biological assets (depreciated costs) - bearer plants 283 712 268 086 Goodwill 104 782 103 008 Other fixed assets 375 593 361 408 Net assets held for sale 12 010 Net current assets, net of cash 91 932 65 316 Net cash position

  • 121 443
  • 83 697

Total net assets 734 576 726 131 Shareholders' equity, group share 644 509 634 636 Non controlling interest 34 250 33 140 Provisions and deferred tax liabilities 55 817 58 355 Total net liabilities 734 576 726 131

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SLIDE 46

SIPEF group – Financial performance

Gross margin – Results before tax (management presentation)

The Connection to the world of Sustainable Tropical Agriculture

46

In KUSD (condensed) DEC 2018 DEC 2017 %change Gross margin per product Palm 62 731 108 941

  • 42%

Rubber

  • 1 277

2 879

  • 144%

Tea 584 1 043

  • 44%

Bananas and flowers 2 669 3.653

  • 27%

Total gross margin 64 707 116 516

  • 44%

General and administrative expenses + other GM

  • 28 443
  • 28 889

Other operating income/(charges) 2 417 1 133 Financial income/(charges)

  • 3 182
  • 3 102

Discounting Sipef-CI 2 031 1 636 Exchange differences

  • 1 670

1 258 Result before tax 35 860 88 552

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SLIDE 47

SIPEF group – Financial performance

Net profit after tax (management presentation)

The Connection to the world of Sustainable Tropical Agriculture

47

In KUSD (condensed) DEC 2018 DEC 2017 Result before tax 35 860 88 551 Tax expense

  • 13 147
  • 23 865

Effective tax rate

  • 36,7%
  • 27,0%

Insurances 1 723 Recurring result after tax 22 713 66 409 Correction PT AM @ 44,9273% in Jan-Feb

  • 1 928

Correction PT AM fair value of assets 75 182 Gain on sale BDM-ASCO 7 376 Consolidated result 30 089 139 663

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SLIDE 48

SIPEF group – Financial performance

Value per hectare

48

Sensitivity 31/12/2018 Stock price @ USD per hectare 43,00 7 493 50,00 8 721 55,00 9 510 60,00 10 298 65,00 11 086 70,00 11 874 75,00 12 663

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SLIDE 49

SIPEF group – Financial performance

Dividend history

49

0,30 0,30 0,40 0,80 0,80 1,10 1,50 1,70 1,70 1,25 1,25 0,60 1,25 1,60 0,55 17% 23% 22% 24% 21% 25% 25% 25% 32% 32% 30% 31% 31% 30% 30% 0% 5% 10% 15% 20% 25% 30% 35% 0,00 0,20 0,40 0,60 0,80 1,00 1,20 1,40 1,60 1,80 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Dividend History Sipef

EUR/share Pay-out

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SLIDE 50

Summary

  • 1. SIPEF Group Company profile
  • 2. Palm oil in the world
  • 3. SIPEF group - Expansion
  • 4. SIPEF Group – Productions & prices
  • 5. SIPEF group – Financial performance
  • 6. Peer review

The Connection to the world of Sustainable Tropical Agriculture 50

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SLIDE 51

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

51

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SLIDE 52

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 (2017): 32,3%
  • Industrial comparable companies (50%)

The Connection to the world of Sustainable Tropical Agriculture

52

Tons CPO own production benchmark (2017) 10.972.924 Worldwide production (Oilworld 2017) 66.860.000

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SLIDE 53

Peer review

Own planted Oil Palm Hectares in KHa (2017)

The Connection to the world of Sustainable Tropical Agriculture

53

37 39 44 65 83 89 96 126 131 144 180 225 174 211 240 248 342 400 603 69 MP Evans Socfinasia R.E.A. Holdings 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

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SLIDE 54

Peer review

Age Profile: Average age planted hectares (2017)

The Connection to the world of Sustainable Tropical Agriculture

54

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

Plantation Integrated Sipef

2016 2017 Var % Average 11,74 11,97 1,9% Sipef 9,91 10,26 3,5%

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SLIDE 55

Peer review

FFB Yield – MT/ha (2017)

55

* Sipef excluding PT Dendymarker acquired per 1 August 2017

The Connection to the world of Sustainable Tropical Agriculture

2016 2017 Var % Average 16,9 17,8 5,2% Sipef 22,4 23,9 6,6% 9,3 13,1 14,1 14,9 15,6 16,1 17,5 18,2 18,4 19,1 19,9 24,1 14,8 15,4 19,0 19,4 20,5 21,4 21,7 23,9 Eagle High Plantations Sampoerna Agro Socfinaf Salim Ivomas Pratama London Sumatra Indon Felda Global Ventures R.E.A. Holdings Bumitama Anglo Eastern Plantations First Resources Genting Plantations Wilmar International Astra Agro Lestari Sime Darby MP Evans Golden Agri-Resources Kuala Lumpur Kepong IOI Corporation SIPEF* Socfinasia Plantation Integrated Sipef

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SLIDE 56

Peer review

Extraction rate from FFB to CPO (2017)

The Connection to the world of Sustainable Tropical Agriculture

56

20,5% 20,6% 21,4% 21,5% 22,0% 22,2% 22,7% 22,8% 22,9% 22,9% 23,4% 23,6% 19,8% 20,4% 21,3% 21,3% 21,7% 21,9% 22,2% 23,4% Felda Global Ventures Wilmar International Anglo Eastern Plantations Astra Agro Lestari IOI Corporation Sime Darby Genting Plantations Sampoerna Agro Kuala Lumpur Kepong Salim Ivomas Pratama Socfinaf Golden Agri-Resources First Resources Bumitama R.E.A. Holdings London Sumatra Indon Socfinasia SIPEF* Eagle High Plantations MP Evans

Plantation Integrated Sipef

* Sipef excluding PT Dendymarker acquired per 1 August 2017

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SLIDE 57

Peer review

CPO Yield – MT/ha (2017)

The Connection to the world of Sustainable Tropical Agriculture

57

2,17 2,82 3,11 3,41 3,56 3,59 3,66 3,94 3,94 4,04 4,70 5,53 3,06 3,25 3,88 4,14 4,55 4,61 4,64 5,58 Eagle High Plantations Sampoerna Agro Felda Global Ventures Socfinaf Salim Ivomas Pratama London Sumatra Indon R.E.A. Holdings Anglo Eastern Plantations Bumitama Wilmar International Astra Agro Lestari Genting Plantations First Resources Sime Darby Golden Agri-Resources IOI Corporation Kuala Lumpur Kepong MP Evans Socfinasia SIPEF*

Plantation Integrated Sipef

* Sipef excluding PT Dendymarker acquired per 1 August 2017

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SLIDE 58

Peer review

Market Cap in MUSD (2017)

The Connection to the world of Sustainable Tropical Agriculture

58

134 293 327 353 446 466 635 741 826 1 805 1 890 1 939 623 1 339 3 022 5 985 6 588 13 501 13 630 750 R.E.A. Holdings Sampoerna Agro Socfinaf Anglo Eastern Plantations Socfinasia MP Evans Salim Ivomas Pratama Eagle High Plantations London Sumatra Indon SIPEF Bumitama Felda Global Ventures Genting Plantations First Resources Astra Agro Lestari Golden Agri-Resources Kuala Lumpur Kepong IOI Corporation Sime Darby Wilmar International

Plantation Integrated Sipef

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SLIDE 59

Peer review

Dividend Yields (based on average market cap 2017)

The Connection to the world of Sustainable Tropical Agriculture

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

Plantation Integrated Sipef

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SLIDE 60

Peer review

Price Earning Ratio (based on average market cap 2017)

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0,0 0,0 9,4 9,8 12,9 13,0 13,1 13,6 13,7 15,8 19,3 26,0 45,4 11,2 16,3 23,8 25,9 38,1 40,8 12,4 Eagle High Plantations * R.E.A. Holdings * Bumitama Anglo Eastern Plantations Wilmar International SIPEF Astra Agro Lestari London Sumatra Indon Socfinaf Sampoerna Agro First Resources Socfinasia Salim Ivomas Pratama MP Evans Sime Darby Kuala Lumpur Kepong Genting Plantations IOI Corporation Golden Agri-Resources Felda Global Ventures Plantation Integrated Sipef

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

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SLIDE 61

Peer review

Net financial position/Equity Ratio (2017)

61

* Cash surplus at the end of the year

  • 23%
  • 21%
  • 20%
  • 20%

20% 21% 43% 53% 63% 77% 79% 134% 3% 24% 40% 48% 69% 76% 86% 13% Anglo Eastern Plantations* Socfinasia* London Sumatra Indon* MP Evans* Sime Darby SIPEF Astra Agro Lestari First Resources Kuala Lumpur Kepong Salim Ivomas Pratama Genting Plantations Felda Global Ventures Bumitama Sampoerna Agro Golden Agri-Resources Wilmar International R.E.A. Holdings Socfinaf IOI Corporation Eagle High Plantations Plantation Integrated Sipef

The Connection to the world of Sustainable Tropical Agriculture

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SLIDE 62

The Connection to the world of Sustainable Tropical Agriculture 62