Dekel Agri-Vision PLC · LSE:DKL
Dekel Agri-Vision — H1 2020 Earnings Presentation
22 slides from Dekel Agri-Vision's earnings presentation, 2020
Slide 1: An established West African focused agricultural company
An established West African focused agricultural company Dekel Agri-Vision Limited : 2020 Interim Results 1 Presentation
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by DekelOil Public Limited (the “Company”). By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. The information and opinions contained in this presentation have not been independently verified, a
Slide 3: Building a leading West African Agricultural Company
COMPANY OVERVIEW Building a leading West African Agricultural Company AIM traded multi-project, multi-commodity Three core projects in Cote d’Ivoire at agricultural company focused on Cote various stages of development: d’Ivoire Palm Oil Collaborative model centred on working closely with local comm
Slide 4: Half Year Production – 2019/2020
CORPORATE Half Year Production – 2019/2020 H1 2020 H1 2019 Change FFB collected (tonnes) 106,188 131,917 -19.50% CPO production (tonnes) 23,882 28,934 -17.46% CPO Sales (tonnes) 23,906 26,702 -10.47% Average CPO price per tonne €602 €505 19.21% PKO production (tonnes) 1,715 1,896 -9.55% PKO Sales (t
Slide 5: 2020 Interim Results Summary
CORPORATE 2020 Interim Results Summary A material improvement in all key financial metrics despite trading during Covid-19 H1 2020 H1 2019 % change Revenue €15.4m €14.6m 5.5% Gross Margin €2.6m €2.3m 13.0% Gross Margin % 16.8% 15.7% 7.0% G&A (€1.4m) (€1.5m) 7.1% EBITDA €1.9m €1.4m 35.7% Net profit /
Slide 6: Interim Results: financials explained
CORPORATE Interim Results: financials explained Stronger year on year global Crude Palm Oil prices and higher extraction rates more than offset lower CPO production at Ayenouan palm oil project • 19.21% increase in average realised sales price of €602 per tonne of CPO (H1 2019: €505) • CPO prices ra
Slide 7: Interim Five Year Track Record
CORPORATE Interim Five Year Track Record • Despite Covid-19 impact on 2020 high season, DKL expects to post improved annual results compared to H1 2019 • H2 2020 like for like tracking materially ahead of H2 2019 driven by higher CPO prices and extraction rates, in additional to a stabilisation in F
Slide 8: H1 2020: Palm Oil Prices Explained
CORPORATE H1: Palm 2019 2020: Palm Oil Prices Oil Price Explained • Average CPO price over last 10 years is $US800 • Having traded as high as US$870 per tonne on 13 January 2020, global CPO prices briefly dipped in H1 2020 due to: o lower demand for food products as a result of extreme measures arou
Slide 9: CPO Medium Term Outlook: Reasons for Strong Optimism
CORPORATE CPO Medium Term Outlook: Reasons for Strong Optimism Growth of Palm Oil area in Malaysia and Indonesia, Year on Year • Palm Oil supply growth is slowing – Malaysian and 20 Year on year area growth % Indonesia CPO growth is 15 almost at a standstill 10 5 0 • Palm oil has the highest yield 1
Slide 10: Ticking off milestones to build the diversified agriculture group
CORPORATE Ticking off milestones to build the diversified agriculture group June 2018 July 2019 September December H1 2020 2019 2019 MOU signed with Material Secured option to Commencement of improvement in acquire an interest Green Enesys to Secured refinancing operations at develop hybrid palm oil
Slide 11: First cashew production on track for Q2 2021
CASHEW PROJECT First cashew production on track for Q2 2021 Excellent Economics Asset Backed Large Scale Development • Ownership of 43.8% with • 7ha in Tiebissou for the plant • Gradually increase additional option to acquire and warehouses (additional 3 processing capacity to 20% ha for extension)
Slide 12: Favourable dynamics of global and regional cashew markets
CASHEW PROJECT Favourable dynamics of global and regional cashew markets 1 •830,000Mt consumed globally in 2017 – primary end markets are food and 2 •Significant lack of value-adding processing capacity in Côte d’Ivoire: out of 720,000 tonnes of raw cashews health produced annually less than 20% pro
Slide 13: Cashew Project Construction
CASHEW PROJECT Cashew Project Construction Dekel Agri-Vision Limited : 2020 Interim Results Presentation 13
Slide 14: Focused on developing sustainable palm oil projects in line with RSPO standards
SOCIAL AND ENVIRONMENT Focused on developing sustainable palm oil projects in line with RSPO standards • AgDevCo – UK Government equity holder and debt provider – strong ESG focus with investment • RSPO member - certification advancing to pre audit stage • Working with Proforest, an internationally
Slide 15: Multiple near term growth drivers
CORPORATE Multiple near term growth drivers Normalisation of CPO prices driving material uplift in financial performance Commencement of cashew production in Q2 2021 will drive a material step up in revenues and provide diversification New ventures under feasibility to further grow and diversify the
Slide 16: Appendices
Appendices Dekel Agri-Vision Limited : 2020 Interim Results Presentation 16
Slide 17: Collaborative model benefits local smallholders, stakeholders and shareholders
COMPANY OVERVIEW Collaborative model benefits local smallholders, stakeholders and shareholders Identify shortfall in local processing capacity Accelerates cash flow Establish nursery to supply local generation and profitability farmers with higher yielding plants Construct state of the art facility
Slide 18: Excellent location with modern infrastructure
COMPANY OVERVIEW Excellent location with modern infrastructure Operational palm oil project at Ayenouan, 2 hours from Abidjan’s port Cashew Processing project under construction at Tiebissou, 3 hours from Abidjan’s port Expansion land at Guitry, 4 hours from Abidjan’s port Advantageous locations wit
Slide 19: Ayenouan Project Overview
AYENOUAN PROJECT Overview • Vertically integrated palm oil project including state of the art nursery, processing mill and logistics network • Includes one of West Africa’s largest crude palm oil (CPO) mills • Fresh Fruit Bunches (FFB) for Mill sourced from over 3,000 smallholders and 1,900ha of mat
Slide 20: State of the art 60,000tpa mill
AYENOUAN PROJECT State of the art 60,000tpa mill Dekel Agri-Vision Limited : 2020 Interim Results Presentation 20
Slide 21: Board of Directors
CORPORATE Board of Directors 25 years operational management and private equity experience in Africa and other emerging markets including 10 years as Andrew Tillery a CEO in Cote d'Ivoire, West Africa where he had responsibility for managing a group of oil palm operations and founded a Non Executive
Slide 22: www.dekeloil.com
www.dekeloil.com Dekel Agri-Vision - UK Office 8 St. James’s Square St. James’s London SW1Y 4JU United Kingdom Lincoln Moore Executive Director lincoln@dekeloil.com 22