Dekel Agri-vision Plc · LSE:DKL
Dekel Agri-vision — DekelOil Public — Investor Presentation (September 2018)
23 slides from Dekel Agri-vision's investor presentation, September 2018
Slide 1: An established West African focused agricultural company
An established West African focused agricultural company DekelOil Public Limited: Corporate Presentation September 2018
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 West Africa various stages of development: Palm Oil Collaborative model centred on working closely • Ayenouan: produ
Slide 4: Collaborative model benefits local smallholders, stakeholders and shareholders
COMPANY OVERVIEW Collaborative model benefits local smallholders, stakeholders and shareholders Identify shortfall in local processing capacity Establish nursery to supply local Accelerates cash flow farmers with higher yielding plants generation & profitability Construct state of the art facility t
Slide 5: Excellent Location, Modern Infrastructure
COMPANY OVERVIEW Excellent Location, Modern Infrastructure Operational palm oil project at Ayenouan, 2hrs from Abidjan’s port Cashew Processing Project under development at Tiebissou, 3 hours from Abidjan’s port Expansion land at Guitry, 4hrs from Abidjan’s port Advantageous locations with good road
Slide 6: 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 • 38,736 tonnes of CPO produced in FY2017 • Fresh Fruit Bunches (FFB) for Mill sourced from
Slide 7: State of the art 70,000tpa Mill
AYENOUAN PROJECT State of the art 70,000tpa Mill DekelOil Public Limited: Corporate Presentation September 2018 7
Slide 8: Feedstock for the Mill
AYENOUAN PROJECT Feedstock for the Mill A blend of smallholder feedstock due to regional surplus supply and company estates which will come into maturity in the near term Smallholder Estates Company Estates • Relationships with 1,000s of small holders and several • 1,900ha planted to date at Ayenoua
Slide 9: Half Year Production Performance 2014-2018
AYENOUAN PROJECT Half Year Production Performance 2014-2018 Year 0 5,000 10,000 15,000 20,000 25,000 30,000 Production (tonnes) H1 2014 Production - 7,932 t H1 2015 Production - 21,836 t H1 2016 - 28,550 t H1 2017 Production - 26,947 t H1 2018 Production - 22,242 t DekelOil Public Limited: Corporate
Slide 10: H1 2018 Harvest
AYENOUAN PROJECT H1 2018 Harvest Lower year on year volumes of FFBs harvested on the eastern side of Cote d'Ivoire where Ayenouan is situated • 22,242 tonnes of CPO produced at Ayenouan mill during H1 2018 compared to 26,947 in H1 2017: • Q1 2018: 13,605 tonnes of CPO produced compared to 2017's rec
Slide 11: Cashew Project Overview
CASHEW PROJECT Overview Phased development of a large scale 30,000tpa Raw Cashew Nut (‘RCN’) processing project Established cashew trading company which is building a vertically integrated processing project • Developing a large scale cashew processing operation Near term revenues via processing of
Slide 12: Vertically Integrated Cashew Project
CASHEW PROJECT Vertically Integrated Cashew Project Established Trader Near Term Revenue Potential • Former trading business (16,000 tonnes of • Relationships in place with cooperatives and RCN in 2015/16) local procurement agents • Trading put on hold in 2017 to focus on • Provides the initial feed
Slide 13: Favourable dynamics of global and regional cashew markets
CASHEW PROJECT Favourable dynamics of global and regional cashew markets • 830,000Mt consumed globally in 2017 – primary end markets are food and health • 8% forecast annual growth in demand – outstrips 6% annual increase in supply since 1990 • Côte d’Ivoire second largest producer globally and larg
Slide 14: Highly attractive economics of processing cashews
CASHEW PROJECT Highly attractive economics of processing cashews • Processed cashews in Cote d’Ivoire currently sell for US$11.05/kg for whole nuts and US$7.50/kg for broken nuts compared to US$1.18/ kg RCN purchase price • Processing 10,000tpa of RCNs has the potential to generate > US$20 million i
Slide 15: Agricultural activity: promoting and supporting smallholders
CASHEW PROJECT Agricultural activity: promoting and supporting smallholders • Capro is working with smallholders and cooperatives to increase the quality, quantity and efficiency of RCN production in Cote d’Ivoire The programme includes: • Regional field officers introducing best practice fertilisat
Slide 16: Guitry Project: Additional value upside
GUITRY PROJECT Additional value upside • Second 100% owned palm oil project in Cote d’Ivoire • Plan to develop Guitry into a ‘seed to oil’ operation, including: • a computerised nursery with a capacity of 1 million plants per year (6,000ha of oil palm estates equivalent) • a state of the art mill pr
Slide 17: 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 • RSPO member - certification process underway • Working with Proforest, an internationally recognised consulting group, to implement social and environmental programmes • Majority of planting on p
Slide 18: H1 2018 – 12 month review
CORPORATE H1 2018 – 12 month review Q3 2017 FY2017 record Q1 2018 FY 2017 H1 2018 Production production Production Results Interim and sales update update Results update Share price and volume graph 4500000 14 4000000 12 3500000 10 3000000 2500000 8 2000000 6 1500000 4 1000000 2 500000 0 0 Volume Cl
Slide 19: Key Financials - Interims 2018
CORPORATE Key Financials - Interims 2018 H1 2018 H1 2017 FFB collected (tonnes) 96,195 117,706 CPO production (tonnes) 22,242 26,947 CPO Sales (tonnes) 22,271 24,570 Average CPO price (tonnes) €549 €707 Revenue (All products) €14.1m €19.6m Gross Margin €2.1m €5.0 Gross Margin % 14.9% 25.5% EBITDA €1
Slide 20: FY 2017 Financial Results
CORPORATE FY 2017 Financial Results 35 • 2017 full year results show a 30 third consecutive set of record financial numbers: revenues of 25 €30.2 million, EBITDA of €4.5 million and net profit after tax of 20 €1.6 million 15 • 2017 results could have been 10 even better had there not been milling di
Slide 21: Investment Case
CORPORATE Investment Case • Profitable West African focused agricultural company with portfolio of multi- stage projects including producing palm oil operation • Track record of FY revenue, EBITDA and profits growth • Expansion of Group with further palm oil project and diversification into cashew n
Slide 22: 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 a CEO in Andrew Tillery Cote d'Ivoire, West Africa where he had responsibility for managing a group of oil palm operations and founded a natural rubbe
Slide 23: Contact details
www.dekeloil.com DekelOil - UK Office 8 St. James’s Square St. James’s London SW1Y 4JU United Kingdom Lincoln Moore Executive Director lincoln@dekeloil.com
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