Slide 1: Analyst presentation
SIPEF Analyst presentation February 17, 2022 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 The Connection to the world of Sustainable Tropical Agriculture • 1st segment of the supply chain – commodities in continuous crops: Agriculture o Palm oil (96% Ha) o Bananas (1% Ha) • Indonesia (82% Ha) Tropical • Papua New Guinee (17% Ha) • Ivory Coast (1% Ha) Sustain
Slide 4: Company profile: Worldwide
SIPEF group – Company profile Worldwide The Connection to the world of Sustainable Tropical Agriculture 4
Slide 5: Company profile: Indonesia
SIPEF group – Company profile Indonesia 5
Slide 6: Company profile: Papua New Guinea
SIPEF group – Company profile Papua New Guinea The Connection to the world of Sustainable Tropical Agriculture 6
Slide 7: Planted hectares summary 100% – December 2021
SIPEF group – Company profile Planted hectares summary 100% – 31 December 2021 Hectares Group 2021 Indonesia PNG Ivory Coast % of total % of total 100% share Palm 63.429 13.262 0 76.691 97% 71.328 96% Rubber 1.954 0 0 1.954 2% 1.763 2% Tea 0 0 0 0 0% 0 0% Bananas 0 0 794 794 1% 794 1% Other 0 0 31 3
Slide 8: Increase in own total planted hectares
SIPEF group – Company profile Increase in own total planted hectares (100%) Mature + immature (incl. hectares PT TD) 100.000 88 939 Ha 88 941 Ha 90.000 84 634 Ha 82 968 Ha 80.000 69 439 Ha 70.000 60.000 56 811 Ha 50.000 48 093 Ha 40.000 30.000 20.000 10.000 0 2005 2008 2016 2017 2019 2020 2024 2031
Slide 9: Total supply bases – mature palm
SIPEF group – Company profile Total supply bases – mature palm Total supply base area - palm 120.000 100.000 14.585 14.581 14.565 14.553 14.539 14.620 14.603 14.539 14.648 14.667 14.676 13.551 13.521 13.494 13.468 13.446 13.427 13.394 13.580 80.000 13.606 13.633 13.688 5.170 5.170 5.170 5.170 5.170
Slide 10: CPO production LTBP 2020 - 2031
SIPEF group – Company profile CPO production LTBP 2020 - 2031 CPO production - own + outgrowers 600.000 500.000 South Sum - expansion own South Sum - original outgrowers 400.000 South Sum - original own HOPL outgrowers HOPL own 300.000 UMW Group outgrowers UMW Group own AM Group outgrowers 200.000 A
Slide 11: 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 11
Slide 12: Mankind will have to produce more food; population growth
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 13: Oil and fat consumption
SIPEF group – Palm oil in the world Oil and fat consumption Oil and fat per capita consumtion (in Kg) Source: Oilworld 80 72,35 = 3 billion people 70 67,59 66,08 59,43 60 56,71 55,77 50 39,05 40 35,54 30,70 29,26 30 25,52 24,20 25,86 21,46 20 17,19 15,57 15,34 14,04 10 0 EU-28 USA China India Indone
Slide 14: Increased demand for meat, fat and biofuel
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 15: 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 15
Slide 16: Vegetable oils
SIPEF group – Palm oil in the world Palm oil in the world - Vegetable oils Source: Oilworld 2020 : 236,0 million Ton 1994/95: 93,1 million tonnes Others 20% Palm oil 16% Palm oil 31% Other oils/animal fats Palm kernel and 37% coconut oil 4% Soybean oil 21% Sunflower oil 9% Palm kernel and Rapeseed o
Slide 17: Palm oil production
SIPEF group – Palm oil in the world Palm oil in the world - Palm oil production 2020 Palm oil production Source: Oilworld Middle & South America Total of 74,0 Mn tonnes 5% Other countries 5% Africa 3% Thailand 4% Indonesia Malaysia 57% 26% Indonesia Malaysia Thailand Africa Middle & South America Ot
Slide 18: 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 19: 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 19
Slide 20: 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 20
Slide 21: The oil palm controversy
SIPEF group – Palm oil in the world The oil palm controversy 21
Slide 22: Sustainable palm oil
SIPEF group – Palm oil in the world Palm oil in the world - Sustainable palm oil 3,35 Million Ha RSPO certified production area in 2021 The Connection to the world of Sustainable Tropical Agriculture 22
Slide 23: 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 45 40 10,16 10,36 9,46 35 8,26 6,52 7,62 6,3 30 5,93 6,69 6,35 25 5,50 6,94 6,84 4,57 7,21 3,67 20 6,30 6,96 17,62 17,07 14,61 2,71 6,20 6,23 11,47 15 2,55 1
Slide 24: Biodiesel worldwide
SIPEF group – Palm oil in the world Biodiesel worldwide Source: Oilworld Biodiesel worldwide 2020 Biodiesel worldwide 2017 Used cooking oil Total of 45,30 Mn tonnes Total of 35,8 Mn tonnes 11% 10% Other oils & fats 4% 4% 31% Coconut oil 0% 7% Tallow Palm Oil 7% 38% 1% Sunflower Oil 1% 19% Rapeseed O
Slide 25: Palm oil use for biodiesel EU
SIPEF group – Palm oil in the world Palm oil use for biodiesel EU Source: Oilworld 2020: Palm oil use for Biodiesel 2017 Palm oil use for Biodiesel Total of 17,5 Mn tonnes Total of 11,6 Mn tonnes EU 27% EU 36% 4,7 Mn tonnes 4,2 Mn tonnes 12,8 Mn tonnes 7,4 7,4Mn Mntonnes tonnes Non EU 64% NON EU 73%
Slide 26: Expansion: Growth in Indonesia and Malaysia
SIPEF group – Expansion Growth in Indonesia and Malaysia Sipef CAGR since 1997 = 4,67% 26
Slide 27: Expansion: Growth in Indonesia and Malaysia
SIPEF group – Expansion Growth in Indonesia and Malaysia Sipef average CPO yield 2021 = 5,1 T/Ha 27
Slide 28: 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 28
Slide 29: Group production palm oil – December 2021
SIPEF group – Productions & prices Group production PALM OIL – December 2021 Palm Oil 2021 2020 Variance Own Tolan Tiga Group 67 550 67 310 0,36% Umbul Mas Wisesa Group 42 733 38 413 11,25% Agro Muko Group 90 895 83 545 8,80% South Sumatra Group 21 331 15 772 35,25% Hargy Oil Palms 94 231 66 432 41,
Slide 30: Group production monthly trend
SIPEF group – Productions & prices Group production actual, budget, last year - Monthly trend Monthly production 38.000 36.000 34.000 32.000 tonnes of CPO 2021 30.000 estimate 2020 28.000 26.000 24.000 22.000 January February March April May June July August September October November December 2021
Slide 31: Group production rubber – December 21
SIPEF group – Productions & prices Group production RUBBER – December 2021 Rubber 2021 2020 Variance Own Tolan Tiga Group 599 918 -34,78% Melania* 1 186 2 695 -55,99% Agro Muko 1 397 1 686 -17,16% Total own 3 182 5 300 -39,96% Outgrowers Tolan Tiga Group 645 711 -9,28% Total Rubber 3 827 6 011 -36,3
Slide 32: Group production tea and bananas – December 2021
SIPEF group – Productions & prices Group production TEA and BANANAS – December 2021 Tea* 2021 2020 Variance Melania - own 829 2 664 -68,88% Melania - outgrowers 136 98 38,78% Total Tea 965 2 762 -65,06% Bananas 2021 2020 Variance Azaguie 1 5 600 5 152 8,70% Azaguie 2 7 512 8 447 -11,07% Agboville 9
Slide 33: Bull & Bear
SIPEF group – Production & prices Bull & Bear Rating Bullish inputs Bearish inputs Palm Oil Neutral due - Palm production continuously below expectation, keeping stocks - High prices are killing demand, but unclear to what extent. to high price low (and likely lower). Certainly in countries in Asia,
Slide 34: CPO prices CIF Rotterdam 2020 – 2021
SIPEF group – Production & prices CPO prices CIF Rotterdam 2020 – 2021 Crude Palm Oil in $/mt Source: Oil World CIF Rotterdam $1.450 $1.350 $1.323 $1.250 $1.150 $1.050 $950 $959 $850 $750 $650 $550 $450 J F M A M J J A S O N D 2020 2021 34
Slide 35: Spread crude palm oil – soybean oil
$1.100 $1.300 $1.500 $1.700 $500 $700 $900 2010M01 2010M03 2010M05 2010M07 2010M09 2010M11 2011M01 2011M03 2011M05 2011M07 2011M09 2011M11 2012M01 2012M03 2012M05 2012M07 2012M09 2012M11 2013M01 2013M03 2013M05 2013M07 2013M09 2013M11 2014M01 SIPEF group – Production & prices 2014M03 Spread crude pa
Slide 36: RSS3 rubber prices 2020 – 2021
SIPEF group – Production & prices RSS3 Rubber prices 2020 – 2021 RSS3 in $/mt Source: Worldbank FOB Singapore $2.400 $2.200 $2.000 $1.800 $1.600 $1.400 $1.200 J F M A M J J A S O N D 2020 2021 36
Slide 37: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial statements SIPEF group - Prospects The Connection to the world of Sustainable Tropical Agriculture 37
Slide 38: Exchange rates IDR/USD
13.000 13.500 14.000 14.500 15.000 15.500 16.000 16.500 201801 201802 201803 201804 Exchange rates 201805 201806 201807 201808 201809 201810 201811 201812 201901 201902 201903 201904 201905 SIPEF group – Financial statements 201906 201907 201908 201909 201910 201911 201912 IDR/USD 202001 202002 2020
Slide 39: Income statement – actuals CY vs actuals PY
SIPEF group - Financial statements Income statement – actuals CY vs actuals PY In KUSD 31/12/2021 31/12/2020 Difference Gross margin Palm 166.562 59.746 179% Rubber -2.608 -1.814 44% Tea 134 -788 -117% Bananas 3.610 4.199 -14% Horticulture 192 191 1% G&A including corporate -35.562 -30.750 Other ope
Slide 40: Income statement – profit before tax
SIPEF group - Financial statements Income statement – actuals CY vs actuals PY In KUSD 31/12/2021 31/12/2020 Profit before tax 124.997 28.065 Tax -36.075 -10.828 Profit after tax 88.922 17.237 Associated companies -1.091 -1.059 Profit for the period - recurring 87.831 16.178 Gain on sale PT Melania
Slide 41: Consolidated balance sheet
SIPEF group - Financial statements Consolidated balance sheet (management presentation) In KUSD (management presentation) 2021 2020 Biological assets (depreciated costs) - bearer plants 307 371 315 826 Goodwill 104 782 104 782 Other fixed assets 363 934 359 994 Receivables > 1 year 25 666 16 101 Ass
Slide 42: Evolution non-recurring net tax position
SIPEF group - Financial statements Evolution non-recurring net tax position • The evolution of the net tax receivable can be split into: 31/12/2019 31/12/2020 30/06/2021 31/12/2021 Indonesia 7 908 409 -995 -10 214 PNG 6 635 6 907 3 033 -7 770 Europe + IC - 236 -237 -285 108 Total 14 307 7 079 1 752
Slide 43: Cash flow (management presentation)
SIPEF group - Financial statements Cash flow (management presentation) KUSD 2021 2020 Diff Cash flow from operations before working capital 178.796 73.669 105.127 Working capital movements -8.523 3.165 -11.688 Taxes paid -9.962 -3.572 -6.390 Cash flow from operations (a) 160.311 73.262 87.049 Cash f
Slide 44: Dividend proposal
SIPEF group - Financial statements Dividend proposal 44 The Connection to the world of Sustainable Tropical Agriculture
Slide 45: 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 45
Slide 46: Prospects: Production and markets
SIPEF group – Prospects Prospects – 17/02/2022 Production Palm oil productions in Indonesia at the beginning of the year below expectations but expected to stabilize; Rainy season in HOPL has started Production of palm oil for 2022 expected to exceed 400 000 tonnes for the first time in SIPE
Slide 47: Prospects: Cash flow, expansion and result
SIPEF group – Prospects Prospects – 17/02/2022 Cash flow and expansion Investment policy remains to be fully focused on development of palm oil activities in South Sumatra; Expansion of the processing capacity in Dendymarker mill from 20 to 60 tonnes per hour, will be completed in Q1 2022; P
Slide 48: The Connection to the world of Sustainable Tropical Agriculture
The Connection to the world of Sustainable Tropical Agriculture 48