Slide 1: SIPEF VFB Happening
SIPEF VFB Happening March 23, 2024 1
Slide 2: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group – Company strategy SIPEF group – Stock valuation
Slide 3: The Connection to the World of Sustainable Tropical Agriculture
The Connection to the world of Sustainable Tropical Agriculture 3
Slide 4: SIPEF at a Glance
SIPEF AT A GLANCE Belgium USD 444 million Headquarters Total sales in FY2023 1919 23 000 KUSD 72 735 employees Net profit Share of the group More than Listed on the 390 000 T of CPO produced EURONEXT stock exchange 100% SIP € 51.60 RSPO COMPLIANT Stock price 4 (14/03/2024)
Slide 5: To Put It in Perspective…
TO PUT IT IN PERSPECTIVE… Equivalent of +/-30% of the province of Antwerp HECTARES Ivory Hectares 2023 Indonesia PNG Coast 100% Palm 68 621 13 550 0 82 171 Rubber 1 901 0 0 1 901 Bananas 0 0 1 229 1 229 Other 0 0 29 29 Total planted 70 522 13 550 1 258 85 329 CPO PRODUCTION Total world CPO productio
Slide 6: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group – Company strategy SIPEF group – Stock valuation
Slide 7: To feed a global population set to reach 9.8 billion by 2050
To feed a global population that is set to reach 9.8 billion by 2050 we will need to use less land to produce 60% more food United Nations. Feeding the World Sustainably. 2012. 7
Slide 8: Vegetable Oil Production
VEGETABLE OIL PRODUCTION 2050 307 - 340 MT 2023 255 MT 1994 93.1 MT 19,2% 32,1% 4,5% 15% 34% 8,8% 20% 5% 8% 11% 12,0% 23,4% 8 Source: Oilworld
Slide 9: Land Use for Vegetable Oils in Hectares
LAND USE FOR VEGETABLE OILS IN HECTARES 350.000.000 300.000.000 250.000.000 200.000.000 150.000.000 100.000.000 50.000.000 0 1990 1997 2004 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1991 1992 1993
Slide 10: Resources Used per Vegetable Oil
RESOURCES USED PER VEGETABLE OIL 10
Slide 11: Area of Land Needed to Meet Global Vegetable Oil Demand
AREA OF LAND NEEDED TO MEET TOTAL GLOBAL VEGETABLE DEMAND PER VEGETABLE OIL (2019) IN MILLION OF HECTARES Palm oil 77 Sunflower oil 312 Rapeseed 318 Soybean oil 478 Olive oil 818 Coconut oil 830 Groundnut oil 1.590 Cottonseed oil 1.860 Sesameseed oil 2.940 0 500 1.000 1.500 2.000 2.500 3.000 11 Sour
Slide 12: Industrial Oil Palm Expansion
INDUSTRIAL OIL PALM EXPANSION 12 Source: TheTreeMap
Slide 13: Palm Oil Production in the World
PALM OIL PRODUCTION IN THE WORLD 2023 Palm oil production Total of 81,6 Mn tonnes Indonesia 6% 5% 2% Malaysia 4% Thailand 23% 60% Africa Middle & South America Other countries 13 Source: Oilworld
Slide 14: Estimated Palm Oil Market Share by End User in 2022
ESTIMATED PALM OIL MARKET SHARE, BY END USER IN 2022 2% 1% Food & beverage 14% Personal care & cosmetics Biofuel & energy 17% 66% Others Pharmaceuticals 14 Source: precedence research
Slide 15: Biodiesel Worldwide
2023 BIODIESEL WORLDWIDE 57,7 Mn tonnes 2017 14% 35,8 Mn tonnes 6% 35% 10% 4% 31% 7% 7% 19% 27% 15% 22% 15 Source: Oilworld
Slide 16: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group – Company strategy SIPEF group – Stock valuation
Slide 17: SIPEF business strategy built on controlled growth as an upstream player
SIPEF business strategy is built on controlled growth as an upstream player and be the preferred supplier of traceable, sustainable, high-quality products looking at diversification into the targeted markets 17
Slide 18: Evolution Planted Hectares Palm
EVOLUTION PLANTED HECTARES PALM EVOLUTION OWN PALM HECTARES +227% 90.000 80.000 70.000 60.000 50.000 40.000 30.000 20.000 10.000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Slide 19: Evolution Own CPO Productions
EVOLUTION OWN CPO PRODUCTIONS 500.000 tons EVOLUTION OWN CPO PRODUCED +371% 500.000 450.000 400.000 350.000 300.000 250.000 200.000 150.000 100.000 50.000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E 20
Slide 20: Evolution Turnover - Equity - NFP - Result
EVOLUTION TURNOVER - EQUITY – NFP - RESULT 1.000 2017: capital increase of 97 MUSD 800 Turnover 600 Equity In MUSD 400 Net financial position 200 Result, share of the Group 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 21: Differentiation Through
DIFFERENTIATION THROUGH INNOVATION EARLY ADOPTION - OPERATIONAL CERTIFICATION THROUGH IMPROVED IMPROVEMENT NEW F1 HYBRID SEEDS QUALITY 21
Slide 22: Innovation Through New F1 Hybrid Seeds
INNOVATION THROUGH NEW F1 HYBRID SEEDS ❑ Most significant development since commercial plantings and cultivation in the 1960s. ❑ NOT genetic modification ❑ Through the SIPEF joint- venture “Verdant Bioscience Singapore Pte Ltd” 22
Slide 23: Improved Quality
IMPROVED QUALITY ❑ Application of “food grade lubricants and grease” for lower contamination ❑ CPO Washing for lower chlorine levels ❑ CPO stream separation for virgin oil and technical oil 23
Slide 24: Operational Improvement
OPERATIONAL IMPROVEMENT ❑ Installation of methane capture plants for biogas production ❑ Continued focus on improving agronomical standards 24
Slide 25: Certifications
CERTIFICATIONS ❑ Halting deforestation ❑ Treating communities and workers fairly ❑ Protecting wildlife and the environment ❑ Traceable CPO (EUDR compliance) Less than 3 million tons is sold as IP/‘segregated’ (100% traceable) SIPEF = 100% compliant and > 390 000 tons (palm products) ‘segregated’ 25
Slide 26: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group – Company strategy SIPEF group – Stock valuation
Slide 27: CPO Price vs Share Price
1.000 1.200 1.400 1.600 1.800 2.000 200 400 600 800 0 01/01/2017 01/03/2017 809 01/05/2017 61,7 € 01/07/2017 01/09/2017 01/11/2017 01/01/2018 01/03/2018 01/05/2018 01/07/2018 01/09/2018 01/11/2018 01/01/2019 01/03/2019 01/05/2019 01/07/2019 01/09/2019 01/11/2019 01/01/2020 CPO price vs share price 0
Slide 28: Value per Hectare
VALUE PER HECTARE Sensitivity December 2023 BOOKVALUE PER HECTARE = Stock price @ USD per hectare 10 039 USD/Ha 40,00 5 224 50,00 6 625 60,00 8 025 Discount of 30% 70,00 9 426 80,00 10 826 90,00 12 226 28
Slide 29: The Connection to the World of Sustainable Tropical Agriculture
The Connection to the world of Sustainable Tropical Agriculture 29