Bumitama Agri Ltd. · SGX:P8Z
Bumitama Agri — Shareholder Meeting (April 2023)
27 slides from Bumitama Agri's shareholder meeting presentation, Apr 20, 2023
Slide 1: Bumitama Agri: FY2022 performance, AGM 20 April 2023
BUMITAMA AGRI Excellence through discipline AGM 20 April 2023 FY2022 performance
Slide 2: Important Notice
Important Notice This presentation has been prepared by Bumitama Agri Ltd. (“Bumitama” or the “Company”) for informational purposes only. It is not to be constructed as investment or financial advice and does not constitute an offer or an invitation to invest in the Company. This presentation may co
Slide 3: Table of Contents
Table of Contents Corporate Overview Financial & Operational Highlights Industry Updates Contact Us 2
Slide 4: Milestones
Milestones Empowered by our motto: Excellence through Discipline, the Group endeavors to be a leading CPO producer through continuous improvement, focusing on productivity, cost efficiency, sustainability, and growth Grossed over IDR 10 Cemented results of Helped a group of trillion in revenue for t
Slide 5: Area of Operations
Area of Operations Considerable amount of our planted surface is strategically located in areas of good precipitation and temperature, well suited for oil palm cultivation Consolidated Riau West Kalimantan Central Kalimantan Total planted area: 188k ha ● 2k ha planted area ● 81k ha planted area ● 10
Slide 6: Committed to shareholders value creation
Committed to shareholders value creation Dividend payout by Bumitama has trended up strongly in the past 3 years ● Annual dividend payment based on financial year 2022 amounted to 7.80 Singapore cents, more than double the previous record of 2021 payout ● Combined with the interim dividend of last S
Slide 7: Awards, Certificates, and Accolades
Awards, Certificates, and Accolades Asiamoney Awarded ‘Most Outstanding Company in Singapore (for the decade) for Small/Mid Caps Sector’ The Edge Billion Dollar Club Financial Times The Straits Times Certificate Awarded the ‘Most Profitable Company’ in Featured as ‘High Growth Companies Recognized a
Slide 8: Table of Contents
Table of Contents Corporate Overview Financial & Operational Highlights Industry Updates Contact Us 7
Slide 9: Executive Summary – Full year 2022
Executive Summary – Full year 2022 The year 2022 was a year of two halves ● First half was dominated by palm oil price rally and production recovery, while the second half was a period of normalizing prices and low-cycle production anomaly due to intensifying extreme weather condition o The first tr
Slide 10: FFB Harvest
FFB Harvest A new record high yield of 21.4 tons per hectare in 2022, supported by 15% rise in FFB output Total Internal External 15% 16% Thousand tons Thousand tons Thousand tons 15% 3,863 3,374 1,468 5,331 1,269 22% 20% 4,643 1,902 725 1,554 603 2H21 2H22 FY21 FY22 2H21 2H22 FY21 FY22 22% 2,627 FF
Slide 11: Income Statement Highlights
Income Statement Highlights Despite the soft 2H22 performance, EBITDA margin in FY22 reached 8-year high Revenue Gross Profit Net Profit* 66% 67% IDR billion IDR billion IDR billion 29% 5,733 3,003 15,829 -14% -38% 3,457 1,802 1,318 2,292 1,961 813 12,249 2H21 2H22 FY21 FY22 2H21 2H22 FY21 FY22 1% E
Slide 12: Crude Palm Oil (CPO)
Crude Palm Oil (CPO) Surge in CPO sales in FY22 was largely attributable to higher ASP, and minimal operational disruptions Production Volume Productivity (FY21 vs FY22) 13% -0.3% Yield (ton per ha), OER (%) Thousand tons 1,188 15% 1,052 22.6 22.3 21.4 20% 18.6 CPO 585 IDR 13,792 bn 488 14% 87.1% 4.
Slide 13: Strong Fundamentals – Financial Performance
Strong Fundamentals – Financial Performance Significant uptrend in palm oil price over the last three years propelled Bumitama’s performance 18 CAGR: 5% 5.0 IDR trillion MYR thousand (per ton) 16 CAGR: 16% 4.5 4.0 14 3.5 12 3.0 10 2.5 8 2.0 CAGR: 16% 6 1.5 4 1.0 CAGR: 14% 2 0.5 0 0.0 2012 2013 2014
Slide 14: Strong Fundamentals – Production Performance
Strong Fundamentals – Production Performance Resilient production in the past three years amidst the triple-dip La Nina weather condition 4,500 Thousand tons CAGR: 10% 4,000 3,500 3,000 2,500 2,000 1,500 CAGR: 10% 1,000 500 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 FFB internal CPO 13
Slide 15: Strong Fundamentals – Productivity
Strong Fundamentals – Productivity Amidst triple-dip La Nina, yield managed to improve to reach record high level in FY22 25 7 6 20 5 15 4 Ton per ha Ton per ha 3 10 2 5 1 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CPO yield (RHS) FFB yield 14
Slide 16: Strong Fundamentals – Gearing Ratio
Strong Fundamentals – Gearing Ratio Robust performance in the past three years has paved the way for significant deleveraging 1.0x 0.9x 0.8x 0.7x 0.6x 0.5x 0.4x 0.3x 0.2x 0.1x 0.0x 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Gearing ratio Net gearing ratio 15
Slide 17: Table of Contents
Table of Contents Corporate Overview Financial & Operational Highlights Industry Updates Contact Us 16
Slide 18: Normalized spread – MDEX vs KPBN
Normalized spread – MDEX vs KPBN KPBN trading prices has maintained upwards of IDR11k since October ‘22 30,000 9,000 27,000 8,100 24,000 7,200 21,000 6,300 18,000 5,400 MYR IDR 15,000 4,500 12,000 3,600 9,000 2,700 6,000 1,800 3,000 900 0 - Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct
Slide 19: Burdensome stockpile is already out of the way
Burdensome stockpile is already out of the way Global palm oil price is inversely correlated with Malaysia inventory level Indonesia Malaysia Combined 8.0 3.5 10.0 Million tons Million tons Million tons 9.0 7.0 3.0 8.0 6.0 2.5 7.0 5.0 6.0 2.0 4.0 5.0 1.5 4.0 3.0 1.0 3.0 2.0 2.0 0.5 1.0 1.0 - - - Jan
Slide 20: Structurally changing supply demand dynamics
Structurally changing supply demand dynamics The 3 successive declines in global palm oil demand (2019-22). Is it due to weakening demand or supply constraint issue? World production growth is slowing down notably Rapid demand growth in Indonesia since 2015 85 0.8% 15.0% 85 25 Million tons Million t
Slide 21: Rapidly rising consumption in Indonesia
Rapidly rising consumption in Indonesia Indonesia palm oil output in 2022 declined further, so did export volumes by ~3 million tons YoY, for a total of >6 million tons since 2019 peak 20
Slide 22: Indonesia biodiesel program to continue providing support
Indonesia biodiesel program to continue providing support B35 mandate is anticipated to soak in 13.15 mn KL in 2023, or 26% rise vs 2022 level 14 13.15 12 10.41 10 8.43 8.44 8 Million KL 6.39 6 3.75 4 3.01 2.57 1.84 2 1.05 0.92 0.67 0.36 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 23: Palm oil's success story in the past 40 years
Palm oil’s success story in the past 40 years Four decades of rising palm oil output ● Doubling years – 1980, 1989(9), 1999(10), 2007(8), next stop in 2023(16)? ● 10mn increments – 1989, 1999(10), 2004(5), 2007(3), 2011(4), 2014(3), 2016(2), next stop in 2023(7)? 22
Slide 24: Significance of palm oil to world's demand of oils & fats
Significance of palm oil to world’s demand of oils & fats Palm oil accounts for 54% of world exports of oils & fats 23
Slide 25: Table of Contents
Table of Contents Corporate Overview Financial & Operational Highlights Industry Updates Contact Us 24
Slide 26: Contact Us
Contact Us If you need further information, please email us at investor.relations@bumitama-agri.com Bumitama Agri Ltd. 10 Anson Road #11-19 International Plaza Singapore 079903 Tel: +65 6222 1332 Fax: +65 6222 1336 Website: www.bumitama-agri.com QR code for our website 25
Slide 27: THANK YOU
THANK YOU 26