Sipef Sa · EURONEXT:SIP
Sipef Sa — Investor Presentation (December 2020)
45 slides from Sipef Sa's investor presentation, Dec 9, 2020
Slide 1: Analyst presentation
SIPEF Analyst presentation December 9, 2020 The Connection to the world of Sustainable Tropical Agriculture 1
Slide 2: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects The Connection to the world of Sustainable Tropical Agriculture 2
Slide 3: Company profile
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 3
Slide 4: Company profile: continuous production, diversified
SIPEF group – Company profile Continuous • Continuous crops production • Palm oil : basic commodity for food (and recently Diversified in energy) product • Rubber : cyclic business - tire industry • Indonesia : leading producing country within Asian Diversified in market origin • PNG : export orient
Slide 5: Company profile: Worldwide
SIPEF group – Company profile Worldwide The Connection to the world of Sustainable Tropical Agriculture 5
Slide 6: Company profile: Indonesia
SIPEF group – Company profile Indonesia 6
Slide 7: Company profile: Papua New Guinea
SIPEF group – Company profile Papua New Guinea The Connection to the world of Sustainable Tropical Agriculture 7
Slide 8: Planted hectares summary 100% – June 20
SIPEF group – Company profile Planted hectares summary 100% – 30 June 2020 2020 Indonesia PNG Ivory Coast Hectares 100% % of total Group share % of total Palm 61 038 13 628 0 74 666 90% 69 151 90% Rubber 5 518 0 0 5 518 7% 4 980 7% Tea 1 786 0 0 1 786 2% 1 612 2% Bananas 0 0 794 794 1% 794 1% Other
Slide 9: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects The Connection to the world of Sustainable Tropical Agriculture 9
Slide 10: Population growth and future food demand
SIPEF group – Palm oil in the world 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 chang
Slide 11: Oil and fat consumption
SIPEF group – Palm oil in the world Oil and fat consumption Oil and fat consumption per capita (in Kg) Source: Oilworld 80 72.58 70 67.32 59.43 60 55.77 54.95 +55% 49.47 50 39.05 40 35.54 29.93 30 27.55 25.52 26.07 25.86 21.46 20 18.29 15.57 15.15 14.04 10 0 EU-28 USA China India Indonesia Pakistan
Slide 12: Palm oil in the world: demand drivers and land input
SIPEF group – Palm oil in the world 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 The Connection to the world of Sustainable Tropical Agric
Slide 13: Resources used per vegetable oil
SIPEF group – Palm oil in the world Palm oil in the world - Comparison to other oils Resources used per vegetable oil: The Connection to the world of Sustainable Tropical Agriculture 13
Slide 14: Palm oil in the world: vegetable oils
SIPEF group – Palm oil in the world Palm oil in the world - Vegetable oils Source: Oilworld 2019 : 234,7 million Ton 1994/95: 93,1 million tonnes Palm oil Others 32% Palm oil 19% 16% Palm kernel and coconut oil 5% Other oils/animal fats 37% Soya oil 21% Sunflower oil 9% Soybean oil Palm kernel and R
Slide 15: Palm oil production
SIPEF group – Palm oil in the world Palm oil in the world - Palm oil production 2019 Palm oil production Source: Oilworld Total of 75,6 Mn tonnes Middle & South America Other countries 4% 7% Africa 2% Thailand 4% Indonesia Malaysia 57% 26% Indonesia Malaysia Thailand Africa Middle & South America Ot
Slide 16: Sustainability
SIPEF group – Palm oil in the world Palm oil in the world - Sustainability • Palm oil remains confronted with a European perception problem based on • Health issues • No fat <-> moderate use of saturated fat • Saturated fats – only 50% saturated and no transfats • Environmental issues • Deforestatio
Slide 17: Sources for deforestation
SIPEF group – Palm oil in the world Palm oil in the world - Sources for deforestation The Connection to the world of Sustainable Tropical Agriculture 17
Slide 18: Commodity commitment
SIPEF group – Palm oil in the world Palm oil in the world – Commodity commitment The Connection to the world of Sustainable Tropical Agriculture 18
Slide 19: Global land use
SIPEF group – Palm oil in the world Palm oil in the world – Global land use 19
Slide 20: Land use of foods per 1000 kcal
SIPEF group – Palm oil in the world Palm oil in the world – Land use of foods per 1000 kcal 20
Slide 21: Sustainable palm oil
SIPEF group – Palm oil in the world Palm oil in the world - Sustainable palm oil 3,05 Million Ha RSPO certified production area RSPO Certified Ha (in KHa) 3 500 3 000 2 500 2 000 1 500 1 000 500 0 The Connection to the world of Sustainable Tropical Agriculture 21
Slide 22: Biodiesel use of major feedstock
SIPEF group – Palm oil in the world Palm oil in the world - Biodiesel use of major feedstock (Mn T) Biodiesel use of major feedstock (Mn T) 50.00 45.00 40.00 10.16 9.46 35.00 8.26 6.52 30.00 7.62 5.93 6.69 6.35 25.00 5.50 6.94 6.84 4.57 7.21 20.00 3.67 17.62 6.30 6.96 14.61 2.71 6.20 6.23 11.47 15.0
Slide 23: Biodiesel worldwide
SIPEF group – Palm oil in the world Biodiesel worldwide Source: Oilworld Biodiesel worldwide 2017 Biodiesel worldwide 2019 Total of 35,8 Mn tonnes Total of 45,7 Mn tonnes 11% 10% 4% 4% 0% 31% 39% 6% 7% 1% 1% 14% 19% 27% 25% Palm Oil Soya Oil Rapeseed Oil Sunflower Oil Palm oil Soya Rapeseed oil Sunf
Slide 24: Palm oil use for biodiesel EU
SIPEF group – Palm oil in the world Palm oil use for biodiesel EU Source: Oilworld 2019: Palm oil use for Biodiesel 2017 Palm oil use for Biodiesel Total of 17,6 Mn tonnes Total of 11,7 Mn tonnes EU 26% EU 36% 4,5 Mn tonnes 4,2 Mn tonnes 7,4 Mn tonnes 13,1 Mn tonnes Non EU 64% NON EU 74% EU Non EU E
Slide 25: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects The Connection to the world of Sustainable Tropical Agriculture 25
Slide 26: Group production palm oil – September 2020
SIPEF group - Production & prices Group production palm oil – September 2020 Palm Oil Sept. 2020 Sept. 2019 Variance Own Tolan Tiga Group 51 740 52 871 -2,14% Umbul Mas Wisesa Group 30 021 29 852 0,57% Agro Muko Group 63 540 60 942 4,26% South Sumatra Group 10 652 9 529 11,78% Hargy Oil Palms 46 952
Slide 27: Group production rubber & tea – September 2020
SIPEF group - Production & prices Group production rubber & tea – September 2020 Rubber Sept. 2020 Sept. 2019 Variance Own Tolan Tiga Group 2 698 2 602 3,73% Agro Muko 1 259 1 649 -23,60% Total own 3 957 4 301 -8,00% Outgrowers 451 535 -15,70% Total Rubber 4 408 4 836 -8,85% Tea Melania - Own 1 978
Slide 28: Group production bananas – September 2020
SIPEF group - Production & prices Group production bananas – September 2020 Bananas Sept. 2020 Sept. 2019 Variance Azaguie 1 3 948 3 660 7,87% Azaguie 2 6 453 7 412 -12,94% Agboville 6 508 6 281 3,61% Motobe 6 896 6 933 -0,53% Total Bananas 23 805 24 286 -1,98% The Connection to the world of Sustain
Slide 29: Bull & Bear
SIPEF group - Production & prices Bull & Bear (16/11/2020) Rating Bullish inputs Bearish inputs Palm Oil Neutral / supported - Production slightly below expectation and start of the - Covid – 19: how will it impact demand following the seasonal production decline. renewed lockdowns? Dec 850 - Export
Slide 30: CPO prices CIF Rotterdam 2019-2020
SIPEF group – Production & prices CPO prices CIF Rotterdam 2019-2020 Crude Palm Oil in $/mt Source: Oilworld CIF Rotterdam 850 800 750 700 650 600 550 500 450 J F M A M J J A S O N D 2019 2020 The Connection to the world of Sustainable Tropical Agriculture 30
Slide 31: Spread crude palm oil – soybean oil
1400 1600 1000 1200 400 600 800 2010M01 2010M03 2010M05 2010M07 2010M09 2010M11 2011M01 2011M03 2011M05 2011M07 2011M09 2011M11 2012M01 2012M03 2012M05 2012M07 2012M09 2012M11 2013M01 2013M03 2013M05 2013M07 2013M09 SIPEF group – Production & prices 2013M11 Spread crude palm oil – soybean oil 2014M0
Slide 32: Rubber prices 2019-2020
SIPEF group – Production & prices Rubber prices 2019-2020 RSS3 in $/mt Source: Source: Worldbank Oilworld 2 400 FOB Singapore 2 200 2 000 1 800 1 600 1 400 1 200 J F M A M J J A S O N D 2019 2020 The Connection to the world of Sustainable Tropical Agriculture 32
Slide 33: Tea prices 2019-2020
SIPEF group – Production & prices Tea prices 2019-2020 Tea in $/mt Source: Worldbank average auction Mombasa 2 450 2 350 2 250 2 150 2 050 1 950 1 850 1 750 J F M A M J J A S O N D 2019 2020 The Connection to the world of Sustainable Tropical Agriculture 33
Slide 34: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects The Connection to the world of Sustainable Tropical Agriculture 34
Slide 35: Sales – consolidated gross margin
SIPEF group – Financial performance Sales – consolidated gross margin 120 000 100 229 100 000 93 847 80 000 60 000 40 000 19,8% 20 000 13,6% 11 443 10 943 4 938 16,9% 3 116 2 247 2 922 15,8% --7,1% -48,1% -24,7% -17,8% 0 Palm Rubber Tea Bananas -20 000 2019 Sales 2019 Gross Margin 2020 Sales 2020 Gr
Slide 36: Consolidated balance sheet (management presentation)
SIPEF group – Financial performance Consolidated balance sheet (management presentation) In KUSD (management presentation) 30/06/2020 31/12/2019 Biological assets (depreciated costs) - bearer plants 310 134 306 342 Goodwill 104 782 104 782 Other fixed assets 361 497 365 412 Receivables > 1 year 15 0
Slide 37: Value per hectare
SIPEF group – Financial performance Value per hectare Sensitivity 30/09/2020 Stock price @ USD per hectare 30,00 5.890 40,00 7.444 50,00 8.999 60,00 10.553 70,00 12.107 80,00 13.662 45,80 (dd 04/12/2020) 8 346 37
Slide 38: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Update expansion SIPEF group - Production & prices SIPEF group – Financial performance SIPEF Group – Prospects The Connection to the world of Sustainable Tropical Agriculture 38
Slide 39: Prospects: production and markets
SIPEF group – Prospects Prospects – 22/10/2020 ✓ Production ➢ Prospects for palm oil production for the fourth quarter are rather favorable due to La Niña weather patterns resulting in higher than normal precipitation; ➢ The previously announced 10% increase in annual volumes will probably not be ac
Slide 40: Prospects: cash flow, expansion and result
SIPEF group – Prospects Prospects – 22/10/2020 ✓ Cash flow and expansion ➢ Investment policy remains to be fully focused on development of palm oil activities in South Sumatra; ➢ Steadily continuing on replanting of own palm plantation areas in Dendymarker; ➢ Group remains faithful to its intention
Slide 41: Prospects – South Sumatra expansion 2020
SIPEF group – Prospects Prospects – South Sumatra expansion 2020 Cultivated hectares (planted & cleared) Musi Rawas development 2019 + 2020 YTD 2020/10 Own 10.312 1.780 12.092 Plasma 1.485 196 1.681 Total 11.797 1.976 13.773 Potential 22.805 Total/Potential 60% DMIL replanting Ha Replanting 2018 & 2
Slide 42: Updated export levy Indonesia
SIPEF group – Prospects Updated export levy Indonesia • On December 3, 2020, a new matrix for export levy on palm products was published by the Indonesian government • Applicable as of December 10, 2020 • Increased levy should ensure current biodiesel program of Indonesian Government (B30) • Updated
Slide 43: New export levy and tax - comparison
SIPEF group – Financial performance New export levy and tax - comparison • Old vs new Export levy: • Export tax unchanged: CPO reference price in Original export CPO reference price in New export levy Difference Export tax USD/tonne levy USD/tonne < 570 55 0 55 < 750 0 570 - 620 55 25 30 751 - 800 3
Slide 44: Impact new export levy structure
SIPEF group – Financial performance Updated export levy – New export levy and tax rates Impact new export levy structure 1200 1000 1000 950 900 871 850 843 800 800 812 777 750 742 700 695 619 669 670 662 667 672 673 671 645 645 569 614 615 610 625 600 594 569 564 514 400 329 277 228 183 200 138 129
Slide 45: The Connection to the world of Sustainable Tropical Agriculture
The Connection to the world of Sustainable Tropical Agriculture 45