The Connection to the world of Sustainable Tropical Agriculture - - PowerPoint PPT Presentation

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The Connection to the world of Sustainable Tropical Agriculture - - PowerPoint PPT Presentation

Oct 12, 2022 500 likes •820 views

VFB happening 24 maart 2018 The Connection to the world of Sustainable Tropical Agriculture Summary SIPEF group Company profile SIPEF group Palm oil in the world SIPEF group Expansion SIPEF group Financial performance SIPEF

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VFB happening 24 maart 2018

The Connection to the world of Sustainable Tropical Agriculture

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Summary

SIPEF group – Company profile SIPEF group – Palm oil in the world SIPEF group – Expansion SIPEF group – Financial performance

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SIPEF group Company profile

Agriculture

  • 1st segment of the supply chain - commodities

Tropical

  • Recent industrialised countries

Sustainable

  • Audited certifications

Connection

  • Publicly quoted

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group Company profile

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

The Connection to the world of Sustainable Tropical Agriculture

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SIPEF group Company profile

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SIPEF group Planted hectares summary – 31 December 2017

Palm Rubber Tea Bananas Other Total % Group share Indonesia 55 686 6 425 1 752 63 863 82% 57 512 PNG 13 621 13 621 17% 13 621 Ivory coast 690 42 732 1% 732 69 307 6 425 1 752 690 42 78 216 100% 71 865 % 89% 8% 2% 1% 0% 100% Group share 64 153 5 398 1 581 690 42 71 865

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Summary

SIPEF group – Company profile SIPEF group – Palm oil in the world SIPEF group – Expansion SIPEF group – Financial performance

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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

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Palm oil in the world Oil and fat consumption

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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

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Palm oil in the world Vegetable oils

16% 21% 11% 9% 6% 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.de, December 2017

31% 24% 12% 9% 4% 20%

2017: 220,0 million tonnes

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

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Palm oil in the world Comparison to other oils

Resources used per vegetable oil:

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Palm oil in the world Palm oil production

Source: oilworld.de, December 2017

54% 29% 4% 3% 1% 6% 3%

2017 Palm oil production (Total of 67,1 Mn Tonnes)

Indonesia Malaysia Thailand Africa Oceania Middle & South America

  • Oth. Countries
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11% 2% 2% 6% 65% 14% 0%

2014/15 World consumption

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

Palm oil in the world Palm oil consumption

Source: oilworld.de, May 2015

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12% 10% 20% 27% 10% 21% 31%

Biodiesel 2017 (Total of 35,2 Mn tonnes)

Other oils & fats Used cooking oil Rapeseed oil Soya oil Palm oil EU Palm oil non-EU

3,5 Mn ton

Palm oil in the world Biodiesel

Source: oilworld.de, December 2017

7,5 Mn ton

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SIPEF group Vegetable oil prices

200 400 600 800 1 000 1 200 1 400 1 600 1 800 2006/01 2006/13 2006/25 2006/37 2006/49 2007/09 2007/21 2007/33 2007/45 2008/06 2008/18 2008/30 2008/42 2009/03 2009/15 2009/27 2009/39 2009/51 2010/12 2010/24 2010/36 2010/48 2011/10 2011/22 2011/34 2011/46 2012/07 2012/19 2012/31 2012/43 2013/05 2013/17 2013/29 2013/41 2014/02 2014/14 2014/26 2014/38 2014/50 2015/11 2015/23 2015/35 2015/47 2016/08 2016/20 2016/32 2016/44 2017/05 2017/17 2017/29 2017/41 2018/01

Palm Oil and its main competitors (weekly prices)

PALM OIL (CIF N.W. Europe) SOYA OIL (FOB Dutch mill) RAPESEED OIL (FOB Dutch mill)

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Palm oil in the world Sustainable palm oil

2,29 Million Ha RSPO certified production area

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Summary

SIPEF group – Company profile SIPEF group – Palm oil in the world SIPEF group – Expansion SIPEF group – Financial performance

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SIPEF group Strategy and expansion

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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Expansion Increase in Ha (Beneficial interest)

10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 90.000 2005 2008 2016 2017 2022 2027 North Sum North Sum expansion Bengkulu Bengkulu expansion PNG PNG expansion Musi Rawas Dendy Marker Ivory Coast Ivory Coast expansion

84 663 Ha 71 865 Ha 32 784 Ha 40 804 Ha 55 125 Ha 84 326 Ha

+30.4%

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Expansion Increase in CPO production (Beneficial interest)

100% 120% 140% 160% 180% 200% 220% 240%

BI hectares BI production

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SIPEF group South Sumatra expansion

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South Sumatra

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Expansion Musi Rawas planted area up to December 2017

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 Hectares

Cumulative Planted Area (Ha) AKL ARU AMR

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Expansion South Sumatra – planted hectares

5 000 10 000 15 000 20 000 25 000 30 000 35 000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

South Sumatra expansion

Musi Rawas own PT Dendymarker own South Sumatra plasma

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Summary

SIPEF group – Company profile SIPEF group – Palm oil in the world SIPEF group – Expansion SIPEF group – Financial performance

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SIPEF group Historical evolution NFP, equity and turnover

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*2013* Restatement for IAS41R

  • 200
  • 100

100 200 300 400 500 600 700 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016 2017 In MUSD

Turnover Equity USD Net financial position USD Result, share of the Group

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SIPEF group Dividend history

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 17% 23% 22% 24% 21% 25% 25% 25% 32% 32% 30% 31% 31% 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

Dividend History Sipef

EUR/share Pay-out

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SIPEF group 2018 prospects

  • We expect a 9% rise in palm oil production;
  • Prices will remain steady;
  • 41% of palm oil production for 2018 sold at USD 741 CIF Rotterdam;
  • Capex primarily expansion in South Sumatra and replacement capex;
  • Sale of BDM-ASCO:

– Selling price set at EUR 35 million for 100%; – Capital gain of approximately USD 7 million; – Gross proceeds of KUSD 20 783 for further reduction of debt position.

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Q&A

Source : http://www.rspo.org/ and SIPEF NV

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