SIPEF SIPEF SIPEF SIPEF Analyst presentation Analyst - PowerPoint PPT Presentation

SIPEF SIPEF SIPEF SIPEF Analyst presentation Analyst presentation Analyst presentation Analyst presentation February 13, 2020 The Connection to the world of Sustainable Tropical Agriculture 1

Summary Summary Summary Summary 1. SIPEF Group – Company profile 2. SIPEF Group – Palm oil in the world 3. SIPEF Group – Volcanic eruption PNG 4. SIPEF Group – Expansion 5. SIPEF Group – Productions & prices 6. SIPEF Group – Financial performance 7. Peer review 2 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Company profile Agriculture • 1st segment of the supply chain - commodities Tropical • Recent industrialised countries Sustainable • Audited certifications Connection • Publicly quoted Publicly quoted Publicly quoted Publicly quoted 3 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Company profile Continuous • Continuous crops production • Palm oil : basic commodity for food (and recently Diversified in energy) product • Rubber : cyclic business - tire industry • Indonesia : leading producing country within Asian Diversified in market origin • PNG : export oriented with strong agronomical basics 4 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Company profile Worldwide 5 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Company profile Indonesia 6

SIPEF group – Company profile Papua New Guinea 7 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Company profile Planted hectares summary 100% – 31 December 2019 Total Group 2019 Palm Rubber Tea Bananas Other % of total planted share Indonesia 60 506 6 159 1 768 0 0 68 433 82% 61 768 PNG 13 707 0 0 0 0 13 707 17% 13 707 Ivory Coast 0 0 0 796 31 827 1% 827 Total 74 213 6 159 1 768 796 31 82 967 100% 76 302 % of total 89% 7% 2% 1% 0% 100% Group share 68 595 5 284 1 596 796 31 76 302 8 The Connection to the world of Sustainable Tropical Agriculture

Summary Summary Summary Summary 1. SIPEF Group – Company profile 2. SIPEF Group – Palm oil in the world 3. SIPEF Group – Volcanic eruption PNG 4. SIPEF Group – Expansion 5. SIPEF Group – Productions & prices 6. SIPEF Group – Financial performance 7. Peer review 9 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Palm oil in the world Palm oil in the world - Population growth • In the coming 40 years, mankind will have to produce more food than in the previous 10 000 years put together • Population growth will have a huge impact on future food demands • Rising middle class is causing diet changes in developing countries • Agricultural land is increasingly becoming scarcer 10 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Palm oil in the world Oil and fat consumption Oil and fat consumption per capita (in Kg) Source: Oilworld 80 72,58 70 67,32 59,43 60 55,77 54,95 +55% 49,47 50 39,05 40 35,54 29,93 30 27,55 26,07 25,86 25,52 21,46 18,29 20 15,57 15,15 14,04 10 0 EU-28 USA China India Indonesia Pakistan Nigeria Brazil World 2018 2012 11

SIPEF group – Palm oil in the world Palm oil in the world - Land input • Increased demand for meat/fat/processed foods • Increased demand for biofuel • Decreasing Agricultural land per capita • Disposable income growth in developing countries 12 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Palm oil in the world Palm oil in the world - Comparison to other oils Resources used per vegetable oil: 13 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Palm oil in the world Palm oil in the world - Vegetable oils Source: Oilworld 2019 : 234,7 million Ton 1994/95: 93,1 million tonnes Palm oil Palm oil Others 32% 16% 19% Palm kernel and coconut oil 5% Other oils/animal fats 37% Soya oil 21% Sunflower oil 9% Palm kernel and Soybean oil Rape oil Rapeseed oil coconut oil Sunflower oil 24% 11% 11% 6% 9% Palm oil Soybean oil Palm oil Soya oil Rape oil Rapeseed oil Sunflower oil Sunflower oil Palm kernel and coconut oil Other oils/animal fats 14

SIPEF group – Palm oil in the world Palm oil in the world - Palm oil production 2019 Palm oil production Source: Oilworld Total of 75,6 Mn tonnes Other countries Middle & South America 7% 4% Africa 2% Thailand 4% Indonesia Malaysia 57% 26% Indonesia Malaysia Thailand Africa Middle & South America Other countries 15

SIPEF group – Palm oil in the world Palm oil in the world - Sustainability • 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! 16 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Palm oil in the world Palm oil in the world - Sources for deforestation 17 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Palm oil in the world Palm oil in the world – Commodity commitment 18 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Palm oil in the world Palm oil in the world - Sustainable palm oil 3,05 Million Ha RSPO certified production area RSPO Certified Ha (in KHa) 3 500 3 000 2 500 2 000 1 500 1 000 500 0 19 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Palm oil in the world Number of certified production and/or operational units Certificates 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 RSPO 2 4 6 6 6 7 10 10 11 11 11 ISCC 2 2 2 4 4 5 5 5 5 4 ISPO 5 5 5 5 6 RA 2 3 5 5 GLOBALG.A.P. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ISO 9001:2015 1 1 FSSC 22000 1 Fairtrade 1 FSC 0 TOTAL 1 1 1 3 7 9 9 11 12 21 23 25 28 30 20 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Palm oil in the world Palm oil in the world - Biodiesel use of major feedstock (Mn T) Biodiesel use of major feedstock (Mn T) 50,00 45,00 10,16 40,00 9,46 35,00 8,26 6,52 7,62 30,00 6,69 5,93 6,35 25,00 5,50 6,94 6,84 4,57 7,21 3,67 20,00 17,62 6,96 6,30 14,61 2,71 6,20 6,23 11,47 15,00 2,55 10,76 10,16 6,38 1,82 8,62 9,06 5,89 6,97 10,00 5,30 5,02 1,43 4,08 4,12 3,47 11,39 2,16 10,74 5,00 9,78 9,19 8,06 7,64 7,37 6,85 7,07 1,22 5,34 4,32 4,34 2,80 0,00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Soya oil Palm oil Rape oil Other oils 21 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Palm oil in the world Biodiesel worldwide Source: Oilworld Biodiesel worldwide 2017 Biodiesel worldwide 2019 Total of 35,8 Mn tonnes Total of 45,7 Mn tonnes 11% 10% 4% 4% 0% 31% 39% 6% 7% 1% 1% 14% 19% 27% 25% Palm Oil Soya Oil Rapeseed Oil Sunflower Oil Palm oil Soya Rapeseed oil Sunflower oil Tallow Coconut oil Other oils and fats Used cooking oil Tallow Coconut oil Other oils & fats Used cooking oil 22

SIPEF group – Palm oil in the world Palm oil use for biodiesel EU Source: Oilworld 2018 Palm oil use for biodiesel 2017 Palm oil use for biodiesel Total of 14,2 Mn tonnes Total of 11,0 Mn tonnes EU 27% EU 35% 3,8 Mn tonnes 3,8 Mn tonnes 7,2 Mn tonnes 10,4 Mn tonnes Non EU 65% NON EU 73% EU NON EU EU Non EU 23

Summary Summary Summary Summary 1. SIPEF Group – Company profile 2. SIPEF Group – Palm oil in the world 3. SIPEF Group – Volcanic eruption PNG 4. SIPEF Group – Expansion 5. SIPEF Group – Productions & prices 6. SIPEF Group – Financial performance 7. Peer review 24 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Volcanic eruption PNG Volcano eruption 2019 – Hargy Oil Palms 25 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Volcanic eruption PNG Volcano eruption 2019 – Hargy Oil Palms 26 The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Volcanic eruption PNG Potential volume & hectare impact • PNG volcanic eruption – potential impact on productive area 2019 2020 2021 2022 2023 Ha 2019 2020 2021 2022 2023 50% 100% 100% 100% 100% Yield prognoses Severe tall 0% 20% 40% 40% 80% 2,000 1,000 400 800 800 1,600 Severe young 20% 30% 50% 60% 100% 932 559 280 466 559 932 Significant 60% 50% 70% 90% 100% 1,334 1,067 667 934 1,201 1,334 Moderate 75% 60% 80% 95% 100% 722 632 433 578 686 722 Light 90% 100% 100% 100% 100% 1,306 1,241 1,306 1,306 1,306 1,306 No damage 100% 100% 100% 100% 100% 7,412 7,412 7,412 7,412 7,412 7,412 13,706 11,911 10,498 11,495 11,964 13,306 % of normal production 86.9% 76.6% 83.9% 87.3% 97.1% Loss against normal production 13.1% 23.4% 16.1% 12.7% 2.9% 19/02/2020 27 The Connection to the world of Sustainable Tropical Agriculture