Dekel Agri-vision Plc · LSE:DKL
Dekel Agri-vision — Shareholder Meeting (August 2020)
28 slides from Dekel Agri-vision's shareholder meeting presentation, August 2020
Slide 1: Dekel Agri-Vision Limited AGM Presentation August 2020
An established West African focused agricultural company Dekel Agri-Vision Limited AGM Presentation August 2020 1
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 followingconditions. The information and opinions contained in this presentation have not been independently verified, ar
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: 12 Months Recap
CORPORATE 12 Months Recap Q12019 May 2020 2018 Final Q1 Quarterly Production FY Production Production results Interim Results FY Production Update Update update update Update Q3 2019 April 2020 4.5 Half Year Production Final Results 4500000 Production Production Updated Update 4 Update 4000000 3.5 3
Slide 5: Full Year Production – 2019
CORPORATE Full Year Production – 2019 Recovery in year on year volumes of FFBs harvested drove strong rebound in H1 CPO production FY 2019 FY 2018 Change FFB collected (tonnes) 176,019 146,036 +21% CPO production (tonnes) 37,649 33,077 +14% CPO Sales (tonnes) 37,713 32,692 +15% Average CPO price per
Slide 6: Key Financials - 2019 Finals
CORPORATE Key Financials - 2019 Finals Operating Results 2019 2018 FFB collected (tonnes) 176,019 146,036 CPO production (tonnes) 37,649 33,077 CPO sales (tonnes) 37,713 32,692 Average CPO price (tonnes) €491 €542 Revenue (all products) €20.9m €20.9m Gross profit €1.7m €1.7m Gross margin % 8.1% 8.3%
Slide 7: 2019: Jump in palm oil production offset weak global palm oil prices
AYENOUAN PROJECT 2019: Jump in palm oil production offset weak global palm oil prices Macro conditions • Strong recovery in harvest following weak 2018 fuelled double Resilient Financial Performance digit increase in CPO production and sales • Flat revenues of €20.9m (2018: €20.9m) • Second consecut
Slide 8: Efforts to mitigate a second consecutive year of low global CPO prices
CORPORATE Efforts to mitigate a second consecutive year of low global CPO prices • 2.2% decrease in general administration expenses • Establishment of fifth logistics centre to facilitate delivery of local smallholder fruit to the mill • Implementation of programme to enable farmers to apply fertili
Slide 9: AgDevCo – a leading social impact investor in African agriculture
CORPORATE AgDevCo – a leading social impact investor in African agriculture ✓ €7.2 million 10-year senior secured loan facility to refinance loan, support ESG activities and growth initiatives ✓ Estimated €5.8 million cash savings during four-year capital repayment holiday ✓ Significantly strengthen
Slide 10: Half Year Production – 2019/2020
CORPORATE Half Year Production – 2019/2020 H1 2020 H1 2019 Change FFB collected (tonnes) 7,975 131,917 -18.46% CPO production (tonnes) 1,764 28,934 -13.16% CPO Sales (tonnes) 1,819 26,702 -48.52% Average CPO price per tonne €602 €505 19.21% PKO production (tonnes) 172 1,896 -2.78% PKO Sales (tonnes)
Slide 11: Interim Five Year Track Record
CORPORATE Interim Five Year Track Record Despite Covid-19 impact on 2020 high season, DKL expects to post improved results compared to H1 2019 H1 2019 H1 2018 H1 2017 H1 2016 H1 2015 FFB collected (tonnes) 131,917 96,195 117,706 123,157 90,879 CPO production (tonnes) 28,934 22,242 26,947 28,550 21,8
Slide 12: Palm Oil Prices Explained
CORPORATE 2020: 2019 : Palm Palm Oil PriceOil Prices Explained • Average CPO price over last 10 years is $US800 • Having traded as high as US$870 per tonne on 13 January 2020, global CPO prices have continued to move lower due to: o lower demand for food products as a result of extreme measures arou
Slide 13: Short to Medium Term: a global short of vegetable oil expected with price spike
CORPORATE Short to Medium Term: a global short of vegetable oil expected with price spike Growth of Palm Oil area in Malaysia and Indonesia, Year on Year • Palm Oil supply growth is 20 slowing – Malaysian and Year on year area growth % 15 Indonesia CPO growth is almost at a standstill 10 5 0 • Palm
Slide 14: Ticking off milestones to build a diversified agriculture group
CORPORATE Ticking off milestones to build a diversified agriculture group June 2018 July 2019 September 2019 December 2019 H2 2020 Secured option to MOU signed with Commencement of Green Enesys to acquire an interest ESG and RSPO Secured refinancing operations at second develop hybrid in cashew proj
Slide 15: First cashew production on track for Q2 2021
CASHEW PROJECT First cashew production on track for Q2 2021 Excellent Economics Asset Backed Large Scale Development • Ownership of 43.8% with • 7ha in Tiebissou for the plant • Gradually increase additional option to acquire and warehouses (additional 3 processing capacity to 20% ha for extension)
Slide 16: Favourable dynamics of global and regional cashew markets
CASHEW PROJECT Favourable dynamics of global and regional cashew markets 1 830,000Mt consumed globally in 2017 – primary end markets are food and 2 Significant lack of value-adding processing capacity in Côte d’Ivoire: out health of 720,000 tonnes produced annually less than 20% processed in-country
Slide 17: Cashew Project Construction
CASHEW PROJECT Cashew Project Construction Dekel Agri-Vision Limited: AGM Presentation August 2020 17
Slide 18: 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 • AgDevCo – UK Government equity holder and debt provider • RSPO member - certification in process • Working with Proforest, an internationally recognised consulting group, to implementsocial and e
Slide 19: Strategic initiatives and growth drivers 2020 onwards
CORPORATE Strategic initiatives and growth drivers 2020 onwards Normalisation of CPO prices and further organic growth of palm oil operation Development of cashew project to diversify and scale up revenues New ventures to further grow and diversify the business Strengthen balance sheet via refinanci
Slide 20: Investment Case
CORPORATE Investment Case West African focused agricultural company with portfolio of multi-stage projects including producing palm oil operation Expansion of Group with further palm oil project and diversification into cashew nuts; • Cashew processing project expected to be commissioned Q2 2021; •
Slide 21: Appendices
Appendices Dekel Agri-Vision Limited: AGM Presentation August 2020 21
Slide 22: Collaborative model benefits local smallholders, stakeholders and shareholders
COMPANY OVERVIEW Collaborative model benefits local smallholders, stakeholders and shareholders Identify shortfall in local processing capacity Accelerates cash flow Establish nursery to supply local farmers with higher yielding plants generation and profitability Construct state of the art facility
Slide 23: Excellent location with modern infrastructure
COMPANY OVERVIEW Excellent location with modern infrastructure Operational palm oil project at Ayenouan, 2 hours from Abidjan’s port Cashew Processing Project under development at Tiebissou, 3 hours from Abidjan’s port Expansion land at Guitry, 4 hours from Abidjan’s port Advantageous locations with
Slide 24: 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 • Fresh Fruit Bunches (FFB) for Mill sourced from over 3,000 smallholders and 1,900ha of mat
Slide 25: State of the art 60,000tpa mill
AYENOUAN PROJECT State of the art 60,000tpa mill Dekel Agri-Vision Limited: AGM Presentation August 2020 25
Slide 26: 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 Company Estates Estates Relationships with 3,000 small holders 1,900ha planted to and several date at Ayenouan cooper
Slide 27: 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 Andrew Tillery a CEO in Cote d'Ivoire, West Africa where he had responsibility for managing a group of oil palm operations and founded a Non Executive
Slide 28: www.dekeloil.com
www.dekeloil.com Dekel Agri-Vision - UK Office 8 St. James’s Square St. James’s London SW1Y 4JU United Kingdom Lincoln Moore Executive Director lincoln@dekeloil.com Dekel Agri-Vision Limited: AGM Presentation August 2020 28
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