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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

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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

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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

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

Publicly quoted Publicly quoted 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 2019

The Connection to the world of Sustainable Tropical Agriculture

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2019 Palm Rubber Tea Bananas Other Total planted % of total Group share Indonesia 60 506 6 159 1 768 68 433 82% 61 768 PNG 13 707 13 707 17% 13 707 Ivory Coast 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

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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

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

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

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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

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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

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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

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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

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

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SLIDE 15

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

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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!
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SLIDE 17

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 - Sustainable palm oil

The Connection to the world of Sustainable Tropical Agriculture

19 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)

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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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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 TOTAL 1 1 1 3 7 9 9 11 12 21 23 25 28 30

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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

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SLIDE 22

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

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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 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

The Connection to the world of Sustainable Tropical Agriculture 24

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SIPEF group – Volcanic eruption PNG

Volcano eruption 2019 – Hargy Oil Palms

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group – Volcanic eruption PNG

Volcano eruption 2019 – Hargy Oil Palms

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group – Volcanic eruption PNG

Potential volume & hectare impact

  • PNG volcanic eruption – potential impact on productive area

19/02/2020

The Connection to the world of Sustainable Tropical Agriculture

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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%

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SIPEF group – Volcanic eruption PNG

Volume impact in KUSD + price impact 2019

The Connection to the world of Sustainable Tropical Agriculture

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HOPL actual 2019 against KUSD Actual 2018 Total sales price impact

  • 13 032

Total volume impact

  • 8 839

Total reduction gross margin HOPL

  • 21 871

Strong decrease in volumes in HOPL triggered by:

  • Adverse weather first semester
  • 3 volcano eruptions
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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

The Connection to the world of Sustainable Tropical Agriculture 29

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SIPEF group – Expansion

Strategy & expansion

The Connection to the world of Sustainable Tropical Agriculture

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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

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SLIDE 31

SIPEF group – Expansion

Increase in Ha (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 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

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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

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SIPEF group – Expansion

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

The Connection to the world of Sustainable Tropical Agriculture

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+ 19% + 65%

80% 90% 100% 110% 120% 130% 140% 150% 160% 170%

Palm Hectares Palm own production

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SLIDE 34

SIPEF group – Expansion

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

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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

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SLIDE 35

The Connection to the world of Sustainable Tropical Agriculture

SIPEF group – Expansion

Musi Rawas expansion

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SLIDE 36

SIPEF group – Expansion

South Sumatra – full scope of development

The Connection to the world of Sustainable Tropical Agriculture

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Latest update Musi rawas Dendymarker Total Izin Lokasi HGU 23 834 17 793 41 627 Expansion Izin Lokasi 8 594 8 594 TOTAL HGU/IZIN 32 428 17 793 50 221 2019 Opening balance Planted / Cleared 10 653 8 730 19 383 2019 Additional Planted /Cleared 1 550 787 2 347 Total Planted / Cleared 12 203 9 517 21 720 Identified 9 840 1 073 10 913 Potential development 22 043 10 590 32 633 INTI 18 369 7 809 26 178 PLASMA 3 674 2 781 6 455

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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

The Connection to the world of Sustainable Tropical Agriculture 37

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SIPEF group – Productions & prices

Group production PALM OIL – December 2019

The Connection to the world of Sustainable Tropical Agriculture

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Palm Oil 2019 2018 Variance Own Tolan Tiga Group 70 489 72 492

  • 2,76%

Umbul Mas Wisesa Group 38 089 41 568

  • 8,37%

Agro Muko Group 82 007 85 219

  • 3,77%

South Sumatra Group 14 227 6 147 131,45% Hargy Oil Palms 59 829 85 015

  • 29,63%

Total own 264 641 290 441

  • 8,88%

Outgrowers Tolan Tiga Group 150

  • Umbul Mas Wisesa Group

151 63 139,68% Agro Muko Group 3 541 3 091 14,56% South Sumatra Group 1 023 2 490

  • 58,92%

Hargy Oil Palms 43 008 55 672

  • 22,75%

Total outgrowers 47 873 61 316

  • 21,92%

Total Palm Oil 312 514 351 757

  • 11,16%
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SLIDE 39

SIPEF group – Productions & prices

Group production RUBBER – December 2019

The Connection to the world of Sustainable Tropical Agriculture

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Rubber 2019 2018 Variance Own Tolan Tiga Group* 972 1 383

  • 29,72%

Melania 2 379 2 976

  • 20,06%

Agro Muko 2 144 2 571

  • 16,61%

Total own 5 495 6 930

  • 20,71%

Outgrowers Tolan Tiga Group* 831 1 052

  • 21,01%

Total Rubber 6 326 7 982

  • 20,75%

*Tolan Tiga Group rubber production have been split into own and outgrower production. The outgrower production consists of production from PT Timbang Deli. The figures of prior year have been restated.

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SIPEF group – Productions & prices

Group production TEA and BANANAS – December 2019

The Connection to the world of Sustainable Tropical Agriculture

40

Tea 2019 2018 Variance Melania 2 331 2 422

  • 3,76%

Total Tea 2 331 2 422

  • 3,76%

Bananas 2019 2018 Variance Azaguie 1 4 976 4 530 9,85% Azaguie 2 9 928 9 197 7,94% Agboville 8 836 7 749 14,03% Motobe 9 109 6 312 44,31% Total Bananas 32 849 27 788 18,21%

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SIPEF group – Productions & prices

Bull & Bear

The Connection to the world of Sustainable Tropical Agriculture

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Rating Bullish inputs Bearish inputs Palm Oil

Feb 750 Mar 745 AMJ 730 JAS 700 OND 675

Bullish long term

  • Prod outlook in Malaysia expected to drop for 2020. Indo small

growth at best. Driven by resting cycle, dry spell, haze and lack of fertilizer.

  • Other prod countries such as PnG, Latin America are also lower

(important for Rotterdam market).

  • All in all, expected no growth in prod!
  • Food demand very good, particularly China is outperforming due to

less domestic soy crushing and less lard. But Coronavirus can put logistics on hold.

  • India will have to buy but is limited to Indo supply.
  • Indo B30 implementation seems to happen, government very

dedicated.

  • B20 in Malaysia, B12 in Brazil…producing oil countries take control in

demand.

  • Stocks in origin are lower by 2.5 to 3 mln mt.
  • Palm oil needs to lose absolute demand, which is not happening at

$700 fob.

  • End consumer is poorly covered.
  • CORONA VIRUS – creates so much uncertainty – sell first and think later
  • attitude. Complete panic sell-off.
  • Indian – Malaysian dispute impacting exports.
  • Uncertainty impacts order flow!
  • Palm has lost its competitiveness vs soybean oil.
  • Palm is now a premium vs gasoil which will test the biodiesel mandates

significantly…. a bearish flag. Indonesia seems to be committed and has the fund to support. EU could become a tested biodiesel environment.

  • South America good soybean crop, but less impact on oil as there is too

little meal demand.

Rubber

RSS3 1555 SIR10 1290

Neutral

  • Leaf disease in Indonesia, Thailand and Vietnam…. impacting

production.

  • Low price environment
  • Corona virus took the market back to the lows.
  • The US-China trade war hurts the Chinese automobile industry, which

plays a bigger role then the shortage in production.

Tea Neutral

  • Low price environment
  • Kenyan prod above expectation and rain season was extended which is

good for production.

  • Pakistan market is still suffering from new regulations regarding

imports…. Creating uncertainty.

  • Unilever considering a sale of tea activities
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SIPEF group – Productions & prices

CPO prices CIF Rotterdam 2018-2019 -2020

42 450 500 550 600 650 700 750 800 850 J F M A M J J A S O N D

Crude Palm Oil in $/mt CIF Rotterdam

2018 2019 2020

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SIPEF group – Productions & prices

Palm-soy spread

The Connection to the world of Sustainable Tropical Agriculture

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400 600 800 1 000 1 200 1 400 1 600

2003M01 2003M04 2003M07 2003M10 2004M01 2004M04 2004M07 2004M10 2005M01 2005M04 2005M07 2005M10 2006M01 2006M04 2006M07 2006M10 2007M01 2007M04 2007M07 2007M10 2008M01 2008M04 2008M07 2008M10 2009M01 2009M04 2009M07 2009M10 2010M01 2010M04 2010M07 2010M10 2011M01 2011M04 2011M07 2011M10 2012M01 2012M04 2012M07 2012M10 2013M01 2013M04 2013M07 2013M10 2014M01 2014M04 2014M07 2014M10 2015M01 2015M04 2015M07 2015M10 2016M01 2016M04 2016M07 2016M10 2017M01 2017M04 2017M07 2017M10 2018M01 2018M04 2018M07 2018M10 2019M01 2019M04 2019M07 2019M10

Palm oil Soybean oil

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SIPEF group – Productions & prices

RSS3 Rubber prices 2018-2019

The Connection to the world of Sustainable Tropical Agriculture

44 1 000 1 200 1 400 1 600 1 800 2 000 J F M A M J J A S O N D

RSS3 in $/mt FOB Singapore

2018 2019 2020

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SIPEF group – Productions & prices

Tea prices 2018-2019

The Connection to the world of Sustainable Tropical Agriculture

45 1 750 1 950 2 150 2 350 2 550 2 750 2 950 3 150 J F M A M J J A S O N D

Tea in $/mt average auction Mombasa

2018 2019 2020

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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

The Connection to the world of Sustainable Tropical Agriculture 46

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SLIDE 47

SIPEF group – Financial performance

Sales – consolidated gross margin

47

240 057 11 699 5 454 17 119 210 251 10 330 5 072 22 024

  • 50 000

50 000 100 000 150 000 200 000 250 000 300 000 Palm Rubber Tea Bananas 2018 Sales 2018 Gross Margin 2019 Sales 2019 Gross Margin 28,7% 16,4%

  • 9,1%
  • 21,7%

11,5%

  • 7,3%

16,3% 21,3%

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SLIDE 48

SIPEF group – Financial performance

Gross margin – Results before tax

The Connection to the world of Sustainable Tropical Agriculture

48

In KUSD (condensed) 31/12/2019 31/12/2018 % diff Gross margin per product Palm 34 445 68 800

  • 50%

Rubber

  • 2 244
  • 1 065

111%

Tea

  • 370

627

  • 159%

Bananas and flowers 4 697 2 794

68%

Corporate 634 941

  • 33%

Total gross margin 37 162 72 096

  • 48%

General and administrative expenses + other

  • 31 481
  • 31 759

Other operating income/(charges)

  • 741

2 352 Financial income/(charges)

  • 5 002
  • 3 457

Discounting Sipef-CI 1 689 2 031 Exchange differences

  • 775
  • 1 666

Profit before tax 852 39 597

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SLIDE 49

SIPEF group – Financial performance

Net profit after tax + tax expense detail

The Connection to the world of Sustainable Tropical Agriculture

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In KUSD (condensed) 31/12/2019 31/12/2018 Profit before tax 852 39 597 Tax expense*

  • 6 772
  • 14 155

Effective tax rate

  • 794,8%
  • 35,7%

Profit after tax

  • 5 920

25 442 Share of results of associated companies

  • 1 485
  • 854

Gain on sale BDM-ASCO 7 376 Profit after tax after

  • 7 404

31 964 Tax expense detail* KUSD Theoretical tax charge 174 Impairments of deferred tax assets

  • 4 321

Sipef CI capital gain 484 Withholding tax on interco interest

  • 445

Impact thin cap rule in Indonesia

  • 1 390

Other (rejected expenses)

  • 1 274

Total tax charge

  • 6 772
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SLIDE 50

SIPEF group – Financial performance

Consolidated balance sheet (management presentation)

The Connection to the world of Sustainable Tropical Agriculture

50

In KUSD 31/12/2019 31/12/2018 Biological assets (depreciated costs) - bearer plants 306 342 283 712 Goodwill 104 782 104 782 Other fixed assets 365 412 364 480 Receivables > 1 year 13 442 11 112 Net current assets, net of cash 94 013 91 932 Net cash position

  • 164 623
  • 121 443

Total net assets 719 368 734 576 Shareholders' equity, group share 628 686 644 509 Non controlling interest 34 325 34 250 Provisions and deferred tax liabilities 56 358 55 817 Total net liabilities 719 368 734 576

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SLIDE 51

SIPEF group – Financial performance

Outstanding CPO receivables

The Connection to the world of Sustainable Tropical Agriculture

51

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SLIDE 52

SIPEF group – Financial performance

Financial covenant LT loan per 31 December 2019

52

  • Level of financial covenant according to new LT loan dd August 2019: 3,5 X REBITDA as per

31/12/2019

  • Waiver for testing was obtained from our bankers for end December 2019 because of too much

uncertainty as also highlighted in previous board meetings

  • At December 31, 2019 debt/rebitda was 3,49x covenant respected
  • Simulations show that for June 2020 and December 2020 no issues are expected
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SLIDE 53

SIPEF group – Financial performance

Cash flow (management presentation)

The Connection to the world of Sustainable Tropical Agriculture

53

31/12/2019 31/12/2018 Diff Cash flow from operations before working capital 48 226 81 899

  • 33 673

Working capital movements

  • 1 646
  • 13 680

12 034 Taxes paid

  • 14 692
  • 34 537

19 845 Cash flow from operations (a) 31 887 33 682

  • 1 795

Cash flow from investing

  • 66 746
  • 69 728

2 982 Cash flow from desinvesting 7 108 2 671 4 437 Cash flow from sales BDM/Asco 20 463

  • 20 463

Investing activities (b)

  • 59 638
  • 46 594
  • 13 044

Free cash flow (a+b)

  • 27 751
  • 12 912
  • 14 839

Purchase own shares

  • 854
  • 1 115

261 Dividend paid

  • 6 495
  • 20 289

13 794 Interest paid

  • 5 042
  • 3 430
  • 1 612

Financing activities (c) – excluding loans

  • 12 391
  • 24 834

12 443 Increase/decrease cash (a+b+c) – excluding loans

  • 40 142
  • 37 746
  • 2 396

NFP 31/12/2018

  • 121 443
  • 83 697
  • 37 746

Leasing impact

  • 3 037
  • 3 037

Cash generation 2019 - LE 2019

  • 40 142
  • 37 746
  • 2 396

NFP 31/12/2019

  • 164 623
  • 121 443
  • 43 180
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SLIDE 54

SIPEF group – Financial performance

Value per hectare

54

Sensitivity 31/12/2019 Stock price @ USD per hectare 30,00 5 816 40,00 7 318 50,00 8 819 60,00 10 321 70,00 11 823 80,00 13 325 52,70 (04/02/2020) 9 225 54,80 (31/12/2019) 9 540

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SLIDE 55

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

The Connection to the world of Sustainable Tropical Agriculture 55

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SLIDE 56

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.

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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

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Own planted Oil Palm Hectares in KHa (2018)

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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%

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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%

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FFB Yield – MT/ha (2018)

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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%
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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%
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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%
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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%
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Dividend Yields (based on average market cap 2018)

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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

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Price Earning Ratio (based on average market cap 2018)

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* 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

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Net financial position/Equity Ratio (2018)

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* 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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