Univanich Palm Oil Public Company Limited Krabi Thailand Krabi - - PowerPoint PPT Presentation
Welcome to Welcome to Univanich Palm Oil Public Company Limited Krabi Thailand Krabi Thailand www. Univanich.com 258 Aoluk-Laemsak Road, Aoluk, Krabi, 81110 email : info@univanich.com Tel : 0 7563 4634 Fax : 0 7568 1124 2 Contents of
Welcome to Welcome to
258 Aoluk-Laemsak Road, Aoluk, Krabi, 81110 email : info@univanich.com Tel : 0 7563 4634 Fax : 0 7568 1124
Contents of Briefing Contents of Briefing 1- World Overview 1- World Overview 2- Thailand Overview 2- Thailand Overview 3- Univanich Company 3- Univanich Company
2
4- Performance in 2006 4- Performance in 2006
113.3 143.8 92.8 80.0
80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 160.0 1990 1995 2000 2005 2010
Million tonnes Million tonnes 3
Palm Kernel Oil (3.6%) Cotton Oil (4.6%) Sunflower Oil (8.8%) Coconut Oil (2.9%) Groundnut Oil (4.1%) Rape Seed Oil (14.6%) Soya Oil (30.6%)
Palm Oil (30.7%)
2005 : 109.2 mil tonnes
PalmKernelOil (2.6%)
Soya Oil (28.6%) Rape Seed Oil (16.1%) Groundnut Oil (6.4%) Coconut Oil (4.8%) Sunflower Oil (13.9%) Cotton Oil (7.5%) PalmOil (20.1%)
1992 : 58.80 mil tonnes
4
Reasons for Consumption Growth
1990 2005 2010 *
World Population (billions)
5.30 6.40 6.65 *
1) 2) Average Consumption (kg/capita/year)
15.29 20.53
?? ?? New consumption of biofuels will increase 2005 - 2010 consumption trend ?? ??
5
50.9 50.5 18.9 11.5
10 20 30 40 50 60 Kg per Capita USA EU China India World average 20.5 kg per person
Population (million) 291 378 1,290 1,000 6
7.7 13.6 14.8 15.6 17.9 18.9
2 4 6 8 10 12 14 16 18 20 Kg per Capita 1991 2000 2001 2002 2003 2004
China’s Consumption of Edible Oils and Fats China China’ ’s Consumption of Edible Oils and Fats s Consumption of Edible Oils and Fats
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33.52 21.88 15.20 11.02 7.04 4.58 5 10 15 20 25 30 35 40
1980 1990 2000
million tonnes
1985 1995 2005
million tonnes 8
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5
1991/92 1994/95 1997/98 2000/01 2003/04
EU Demand Trend 1990-2004
EU Palm Oil Consumption, 1991- 2005 EU Palm Oil Consumption EU Palm Oil Consumption, , 1991 1991-
2005
Million Tonnes
9
10
Others (9.0%)
Sunflower Oil (4.0%) Coconut Oil (4.0%) Rice Bran Oil (4.0%)
Soya Bean Oil (18.0%) Palm Kernel Oil (5.0%) Palm Oil (56.0%)
Source: Ministry of Agriculture of Thailand
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1 9 6 8 1 9 7 1 9 7 2 1 9 7 4 1 9 7 6 1 9 7 8 1 9 8 1 9 8 2 1 9 8 4 1 9 8 6 1 9 8 8 1 9 9 1 9 9 2 1 9 9 4 1 9 9 6 1 9 9 8 2 2 2 2 4
438,900 hectares 2,743,131 Rai
12 Mostly Smallholders Hectares
PHUKET •
13
Margarine shortening (9.0% ) Food Industry (25.0% )
(snack food, condensed milk, coffee mate)
Animal feeds (7.0% ) Soap industry (4.0% ) Edible Oil (55.0% )
(Cooking Oil)
Source: Ministry of Agriculture of Thailand
Note : Biofuel / biodiesel does not yet feature in official statistics. Potential to consume 30% of production within 3 years.
14
8.2 mil rai 6.7 mil rai 5.2 mil rai 3.7 mil rai 1.4 mil rai 10.0 mil rai 2.7 mil rai 1.0 mil rai 0.0 2.0 4.0 6.0 8.0 10.0 12.0 1995 2000 2005 2010 2015 2020 2025 2030
7.7 mil rai New target for 2009
Million Rai
New planting target 2006 - 2009 = 5.0 million rai
Government’s revised target for Oil Palm Planting Government Government’ ’s revised target for Oil Palm Planting s revised target for Oil Palm Planting
15 To meet target of To meet target of 10% 10% biodiesel blend by biodiesel blend by 2012 2012
2003 2004 2005
(Decrease)
3- Palm Oil Production 864,000 821,000 784,000 (- 9.3%)
(mt CPO) (tonnes/hour)
2- Crushing Capacity 1,569 1,779 2,019 + 28.7% 1- Oil Palm Area 2.04 2.39 2.74 + 34.5 %
(million rai) Increase / 16
20 40 60 80 100 120 140 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2003 2004 2005 2006 YTD
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total
2003
32.7 53.1 86.5 92.0 112.5 105.1 92.8 73.4 69.9 62.1 46.3 37.6
863.8 2004
32.2 46.2 67.5 72.8 88.2 78.2 74.8 77.1 77.1 79.2 70.2 57.4
820.8 2005
49.3 55.3 84.8 83.5 81.5 69.7 67.7 68.6 70.4 63.2 50.0 40.0
784.0 2006
38.6 71.0 117.3 127.3 128.0 95.3 90.0 101.7 106.5 114.1
989.7
Thousand Tonnes CPO Thousand Tonnes CPO 17
18
> Founded in 1969
Pioneer of first oil palm plantings in Thailand
> 1973 : First Palm Oil Crushing mill constructed
Amalgamation of 3 companies to form Univanich Group
> 1983 - 1998 : Joint Venture with Unilever PLC of UK
Thai Oil Palm Industry and Estate Co., Ltd.
Hup Huat Palm Oil Industry Co., Ltd. Siam Palm Oil and Refinery Industry Co., Ltd. (51% Unilever) 19
Background (continued)
> 2005 : Produced approximately 12% of Thailand’s
20% exported, 80% domestic sales
Crude Palm Oils > 2003 : UVAN Listed on Stock Exchange of Thailand
Approximately 80% Thai, 20% Foreign shareholders
> 1998 : Unilever’s 51% stake sold to JV partners
Global strategy to focus on core consumer products 20
Siam Factory Topi Factory Lamthap Factory
AOLUK
Topi Factory Siam Factory
21
Own Plantations
4 Estates 37,500 rai (6,000 ha)
Outside Fruit Purchases
approx 1,500 small growers approx 170,000 rai (27,200 ha)
Univanich Oil Palm Research Centre
Seedlings for replanting Seedlings for new planting 3 Crushing mills (135 tonnes fruit per hour) CPO PKO PKC
127,000 mt 16,800 mt
18% Raw material
127,000 mt
82% Raw material
580,000 mt 18,700 mt
Approx Approx 75% 75% CPO CPO/ /PKO exported in PKO exported in 2006 2006 22
Univanich Long Term Growth Trend Univanich Long Term Growth Trend Univanich Long Term Growth Trend
Fruit Processed 1990 - 2006
557 506 545 507 338 428 466 374 286 336 304 253 235 231 185 149 136 100 200 300 400 500 600
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 9 M 06
(thousand tonnes)
Estate Fruit Purchased Fruit
23 9 months 2006
Total Palm Oil Production 1990 -2006
Univanich Long Term Growth Trend Univanich Long Term Growth Trend Univanich Long Term Growth Trend
112.2 101.0 107.6 102.3 68.1 87.6 96.2 72.5 52.4 65.5 60.5 51.7 51.6 48.7 39.7 32.0 29.2 20 40 60 80 100 120
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 9 M 06
(thousand tonnes)
PKO CPO
24 9 months 2006
25
New Lamthap Factory opened October New Lamthap Factory opened October 2004 2004
Increased Univanich capacity by 50%
26
New New Lamthap Factory Office Lamthap Factory Office & & Weighbridge Weighbridge
Capacity to be filled over next 3 years
27
Capacity for expansion at new Lamthap Factory Capacity for expansion at new Lamthap Factory
45 mt per hour can be expanded to 90 mt per hour in future
28
New PKO Plant at Lamthap New PKO Plant at Lamthap
2005 : PK crushing capacity expanded by 70%
29
2004 2005 2006 (11 mths) Fruit Processed (mt) 31,185 130,279 194,781 CPO Produced (mt) 5,891 22,666 34,581 PKO Produced (mt) 1,233 4,974
30
New Houses for Lamthap employees New Houses for Lamthap employees
38 houses for new employees & facilities
Univanich Univanich now employs more than 1,100 people now employs more than 1,100 people
31
New Storage Capacity for increased production New Storage Capacity for increased production
Total Univanich storage capacity increased to 15,000 tonnes at 3 sites
32
Export Shipments Export Shipments
In 2006 UVAN will export more than 100,000 mt CPO/PKO to Asia and Europe
33
Established in Established in 1983 1983
34
Palm Breeding
Fertiliser Trials
Irrigation Research
Planting Density Trials
Replanting Method Trials
Oil Palm Tissue Culture
35
Dr Palat Tittinutchanon
(Plantations Manager and Head
Dr Palat Tittinutchanon Dr Palat Tittinutchanon
( (Plantations Manager and Head Plantations Manager and Head
)
Oil Palm Trials
(30 people)
Breeding and Seed Production
(52 people)
Tissue Culture
(4 people)
Chayawat Nakharin
(Research Officer)
Chayawat Chayawat Nakharin Nakharin
( (Research Officer Research Officer) )
Consultants : Dr RHV Corley- Research Strategy and Agronomy Dr V Rao
Dr J Eeuwens - Oil Palm Tissue Culture 36
Description Number Trial
Area (ha)
13 99.1
8 35.3
7 33.6
18 153.6
6 131.2
2 108.6
13 45.4 Total Area under Research Trials 606.8 Ha 3,793 Rai 37
To produce World Class Tenera hybrid oil palms
= Dura x Pisifera (D x P hybrid) Selections based on :
38
Source of Univanich Pedigree Material Source of Univanich Pedigree Material Source of Univanich Pedigree Material
Cameroon Congo
Papua New Guinea
Malaysia
Univanich Univanich
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Progeny selection with consultant Progeny selection with consultant
Oil Palm Breeding Oil Palm Breeding
40
DxP Seed Production DxP Seed Production Flower bagging on elite Dura mother palms Flower bagging on elite Dura mother palms
41
Controlled Pollination Controlled Pollination DxP Seed Production DxP Seed Production
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Bunch composition analysis Bunch composition analysis Oil Palm Breeding Oil Palm Breeding
43
Germinated seed selection Germinated seed selection Seed Quality Control Seed Quality Control
44
Seed ready for planting Seed ready for planting DxP Seed Production DxP Seed Production
45
Packing for Export Packing for Export Seed Quality Control Seed Quality Control Certified ISO Certified ISO 9001:2000 9001:2000
46
Selection in pre Selection in pre-
nursery Seedling Quality Control Seedling Quality Control
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Planting in Main Nursery Planting in Main Nursery Seedling Quality Control Seedling Quality Control
48
Seed customer from Philippines inspecting Univanich material Seed customer from Philippines inspecting Univanich material Seed Exports Seed Exports
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Univanich Univanich DxP DxP hybrid 24 months after planting hybrid 24 months after planting
Progeny Testing Progeny Testing
50
Univanich DxP Univanich DxP 48 48 months in progeny trials months in progeny trials
Progeny Testing Progeny Testing
51
Felling old palms for replanting Felling old palms for replanting
52
Routine replanting of 3% to 4% of plantation area each year
Year of Area Replanting Hectares Rai
1992 299.3 1870.6 1993 294.5 1840.6 1994 210.5 1315.6 1995 258.7 1616.8 1996 99.4 621.2 1997 398.0 2,487.5 1998 279.6 1,747.5 1999 125.9 786.9 2000 345.9 2,161.9 2001 102.0 637.5 2002 280.0 1,750.0 2003 141.3 883.1 2004 173.5 1,084.4 2005 192.3 1,201.9 2006 191.3 1,195.6
Total replanting
3,392.2 21,201.2
The Company now has well balanced age profile. Routine replanting of 3% to 4% of plantation area each year.
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Univanich Planting Material Univanich Planting Material Second generation palms planted on terraces Second generation palms planted on terraces
54
55
Expansion of Seed Production Facilities Expansion of Seed Production Facilities Expansion of Seed Production Facilities
New Seed Labs constructed 2006 BOI Promoted Project
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Development of Oil PalmTissue Culture Development of Oil PalmTissue Culture Development of Oil PalmTissue Culture
Tissue Culture Laboratory completed December 2005 BOI Promoted Project
57
Tissue Culture Laboratory Tissue Culture Laboratory Tissue Culture Laboratory
58
Technicians transferring cultures in Univanich TC Lab Technicians transferring cultures in Univanich TC Lab
59
Cultures developing into oil palm clones in Univanich Lab Cultures developing into oil palm clones in Univanich Lab
Tissue Culture Laboratory Tissue Culture Laboratory Tissue Culture Laboratory
60
13th December 2006
Report on Operating Outcome January - September 2006
Concern FFB (tonnes) ผลผลิตปาลมสดจากสวน (ตัน Purchased FFB (tonnes) ผลปาลมสดรับซื้อ (ตัน)
Fresh Fruit Bunches (FFB)
76,674 ,500 335,126 January - September มกราคม - กันยายน 2005 2006 งบประมาณปนี้
61
97,31575 460,3490,500
Total FFB
411,800 557,664 + 35.4%
tonnes
62
CPO Local Sales (tonnes) ยอดขายน้ํามันปาลมดิบในประเทศ (ตัน CPO Export Sales (tonnes) ยอดสงออกน้ํามันปาลมดิบ (ตัน) Total CPO Sales รวมยอดขาย 76,428
90,897 + 18.9% PKO Local Sales (tonnes) ยอดขายน้ํามันเมล็ดในปาลมในประเทศ (ตัน PKO Export Sales (tonnes) ยอดสงออกน้ํามันเมล็ดในปาลม (ตัน) Total PKO Sales รวมยอดขาย 1,040 10,179 11,219 14,113 +25.8% January - September มกราคม - กันยายน 2005 2006 งบประมาณปนี้ tonnes 52,208 38,689 3,404 10,709
Palm Oil Sales Volume
CPO Selling Price (Bt/kg) ราคาขายน้ํามันปาลมดิบ (บาท/กก.) PKO Selling Price (Bt/kg) ราคาขายน้ํามันเมล็ดใน (บาท/กก.) 16.77 22.91
63
January - September มกราคม - กันยายน 2005 2006 งบประมาณปนี้ 15.72
20.14
Baht/kg
Palm Oil Prices
64
Net Proceeds of Sales
January - September มกราคม - กันยายน 2005 2006 งบประมาณปนี้ Total Sales 1,657 2 1,823 +10.0%
Baht millions
Profit before Tax (Baht millions) กําไรกอนหักภาษี (ลานบาท) Profit after Tax (Baht millions) กําไรหลังหักภาษี (ลานบาท) 174.95 284.19 165.31 268.41 +62.4%
65
January - September มกราคม - กันยายน 2005 2006 งบประมาณปนี้
Baht millions
Earnings per Share (Baht par 5) กําไรสุทธิตอหุน (หุนละ 5 บาท) 1.76 2.86
66
January - September มกราคม - กันยายน 2005 2006 งบประมาณปนี้
Dividend Payments
Baht Per Share
YEAR Profit after Tax Dividend Declare Dividend per 2000 2001 2002 2003 2004 2005 2006 2007 (Baht Million) (Baht Million) (%) Share(Baht)
1998 284.7 261.0 91.7% 3.15 1999 356.1 214.2 60.1% 2.59 1.34 2000 234.8 140.8 60.0% 1.70 0.50 1.20 2001 207.1 145.0 70.0% 1.75 0.75 1.00 Special 248.6 3.00 3.00 2002 222.5 145.0 65.2% 1.75 1.00 0.75 2003* 400.2 306.7 76.6% 3.50 2.00 1.50 2004 385.3 282.0 73.2% 3.00 1.30 1.70 2005 200.1 188.0 94.0% 2.00 1.30 0.70 Total 2290.8 1931.2 84.3% 22.44 2006 268.4 117.5 43.8% 1.25 1.25 ?? (9 months)
14368 12291 13662 10756 12348 12142 9995 8714 12781 9110 6683
5,000 10,000 15,000 20,000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
2005 2006 (11 months)
Univanich Monthly CPO Produced January - November 2006
Tonnes CPO
January - November 2006 CPO production is 45% higher than same period last year
68
1199 1349 1742 1443 1580 1492 1311 1679 1617 1686 796
500 1,000 1,500 2,000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2005 2006 (11 months)
Tonnes
January - November 2006 PKO production is 46% higher than same period last year
69
Univanich Monthly PKO Produced January - November 2006
17.00 16.10 16.66 15.16 15.10 14.78 14.85 14.25 15.20 17.20 18.16
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Baht/kg 2004 2005 2006 * * Univanich actual sales
Bangkok equivalent
70
CPO prices are increasing above Baht 18.0/kg in December 2006
103.1 315.0 159.2 155.5 222.2 308.7 100 200 300 400 2003 2004 2005 LE2006 Budget2007 LTP2008
Baht millions
Capital Expenditure
Year Total Capex Some Major Projects Completed All Projects (Baht millions) 2004 315.0 New factory at Lamthap (Increased CPO capacity by 50%) 2005 159.2 New PKO plant at Lamthap (Increased PKO capacity by 70%) 2006 155.5
Latest
New Seed Production Lab (Increased seed capacity by 50%)
Estimate
New Oil Palm Tissue Culture Lab (For future clonal palms) 2007 222.2 budget New Biogas Plant at Siam (950 kw VSPP gas generator) New Biogas Plant at Lamthap (950 kw VSPP Phase I) 2008 308.7 LTP New Biogas Plant at Topi (2.0 MW VSPP gas generator) New Biomass power plant (> 3.0 MW VSPP steam generator)
1- More than 100 biodiesel plants are under construction or planned around the world. Average plant capacity 80,000 to 100,000 tonnes / year. 2- 3.66 million tonnes of Europe’s rapeseed oil production is now used for non-food use (58% of production). 3- Current EU Biodiesel capacity is around 6.1 million tonnes. This is expected to reach 8.0 million tonnes in 2007. 4- Therefore, Europe will not have enough raw materials for it’s biodiesel production.
What about Biodiesel ? (contd) 6- EU Biodiesel is heavily subsidised by the EU taxpayers. These taxpayers may not want to subsidise Asian biodiesel producers. 7- The cheapest way of making biodiesel blends (B5% or B10%) is to make the biodiesel at the petroleum refinery when the diesel is being refined. 8- Therefore, Europe will prefer to import the raw material to make & blend their own biodiesel. 5- Biodiesel is expensive to ship and to store
9- Export suppliers of raw materials (eg. Palm Oil) will be in strong position.
Financial Ratios 2005
Jan-Sep'06
Total Assets (Baht Mil.) 1,214.4 1,338.3 Current Liabilities (Baht Mil.) 68.0 98.7 Long Term Liabilities (Baht Mil.) 55.7 63.8 NAV per share (Baht) 12.9 14.2 NBV per share (Baht) 11.6 12.5 Current Ratio 3.9 4.2 Debt per Equity 0.1 0.1 ROA (Return on Assets) (%) 16.5% 20.1% ROE (Return on Equity) (%) 18.3% 22.8% Gross Profit Margin 16.9% 22.3% Net Profit Margin 9.5% 14.7% Earnings Per Share (Baht) 2.13 2.86