Sipef Sa · EURONEXT:SIP
Sipef Sa — Non-Deal Roadshow (October 2018)
65 slides from Sipef Sa's roadshow presentation, Oct 25, 2018
Slide 1: SIPEF financial statements June 2018 - London Roadshow
SIPEF financial statements June 2018 London Roadshow October 25, 2018 The Connection to the world of Sustainable Tropical Agriculture 1
Slide 2: Summary
Summary 1. SIPEF Group Company profile 2. SIPEF group - Expansion 3. SIPEF Group – Productions & prices 4. SIPEF group – Financial performance 5. Peer review 2 The Connection to the world of Sustainable Tropical Agriculture
Slide 3: Summary
Summary 1. SIPEF Group Company profile 2. SIPEF group - Expansion 3. SIPEF Group – Productions & prices 4. SIPEF group – Financial performance 5. Peer review 3 The Connection to the world of Sustainable Tropical Agriculture
Slide 4: Agriculture, Tropical, Sustainable, Connection
1. 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 4
Slide 5: Continuous production, diversified in product and origin
1. 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 ori
Slide 6: Company profile - Worldwide
1. SIPEF group - Company profile Worldwide The Connection to the world of Sustainable Tropical Agriculture 6
Slide 7: Company profile - Indonesia
1. SIPEF group - Company profile Indonesia 7
Slide 8: Company profile - Papua New Guinea
1. SIPEF group - Company profile Papua New Guinea The Connection to the world of Sustainable Tropical Agriculture 8
Slide 9: Planted hectares summary – June 2018
1. SIPEF group - Company profile Planted hectares summary – 30 June 2018 Palm Rubber Tea Bananas Other Total % Group share Indonesia 56 425 6 121 1 752 64 298 82% 57 936 PNG 13 622 13 622 17% 13 622 Ivory coast 690 42 732 1% 732 Total 70 047 6 121 1 752 690 42 78 652 100% 72 290 % 89% 8% 2% 1% 0% 10
Slide 10: Palm oil in the world - Population growth
1. SIPEF group - Company profile 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 changes
Slide 11: Palm oil in the world - Oil and fat consumption
1. SIPEF group - Company profile Palm oil in the world - Oil and fat consumption The Connection to the world of Sustainable Tropical Agriculture 11
Slide 12: Palm oil in the world - Land input
1. SIPEF group - Company profile 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 Agricult
Slide 13: Palm oil in the world - Sources for deforestation
1. SIPEF group - Company profile Palm oil in the world - Sources for deforestation The Connection to the world of Sustainable Tropical Agriculture 13
Slide 14: Palm oil in the world - Vegetable oils
1. SIPEF group - Company profile Palm oil in the world - Vegetable oils 2017: 220,0 million tonnes 1994/95: 93,1 million tonnes 20% 31% 16% 37% 4% 9% 21% 12% 6% 24% 11% 9% Palm oil Soya oil Palm oil Soya oil Rape oil Sunflower oil Rape oil Sunflower oil Palm kernel and coconut oil Other oils/animals
Slide 15: Palm oil in the world - Comparison to other oils
1. SIPEF group - Company profile 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: Palm oil in the world - Palm oil production
1. SIPEF group - Company profile Palm oil in the world - Palm oil production 2017 Palm oil production (Total of 67,1 Mn Tonnes) 3% 6% 1% 3% 4% 54% 29% Indonesia Malaysia Thailand Africa Oceania Middle & South America Oth. Countries The Connection to the world of Sustainable Tropical Agriculture 16
Slide 17: Palm oil in the world - Palm oil consumption
1. SIPEF group - Company profile Palm oil in the world - Palm oil consumption 2014/15 World consumption 0% 11% 14% 2% 2% 6% 65% Europe Russia North America South America Asia and the middle east Africa Oceania The Connection to the world of Sustainable Tropical Agriculture 17
Slide 18: Palm oil in the world - Biodiesel
1. SIPEF group - Company profile Palm oil in the world - Biodiesel Biodiesel 2017 27% (Total of 35,2 Mn tonnes) 3,5 Mn ton 10% 31% 20% 7,5 Mn ton 21% 10% 12% Other oils & fats Used cooking oil Rapeseed oil Soya oil Palm oil EU Palm oil non-EU The Connection to the world of Sustainable Tropical Agric
Slide 19: Palm oil in the world - Sustainable palm oil
1. SIPEF group - Company profile Palm oil in the world - Sustainable palm oil In 2017 approximately 3,55 million tons entered the market as ‘segregated’ (100% traceable) SIPEF = 100% certified oil and > 350.000 tons ‘segregated’ 2,86 Million Ha RSPO certified production area The Connection to the wo
Slide 20: Summary
Summary 1. SIPEF Group Company profile 2. SIPEF group - Expansion 3. SIPEF Group – Productions & prices 4. SIPEF group – Financial performance 5. Peer review 20 The Connection to the world of Sustainable Tropical Agriculture
Slide 21: Strategy & expansion
2. SIPEF group - Expansion Strategy & expansion SIPEF group= 100.000 Ha planted (group’ share) Focus on core-business • Palmoil – Rubber – Bananas – Tea • Indonesia – Papua New Guinea Focus on ‘Sustainable Agriculture’ (RSPO) Expansion of existing activities Acquisition of new investments Balanced l
Slide 22: Planted area (in hectares) – 100%
2. SIPEF group - Expansion Planted area (in hectares) – 100% 100.000 94 265Ha 94 470Ha 90.000 81 717Ha 80.000 78 213 Ha 69 439 Ha 70.000 60.000 56 811Ha 50.000 48 093Ha 40.000 30.000 20.000 10.000 0 2005 2008 2016 2017 2018 2023 2028 North Sum North Sum expansion Bengkulu Bengkulu expansion PNG PNG
Slide 23: Supply base: own ha and outgrowers ha – 100%
2. SIPEF group - Expansion Supply base (in hectares): own ha and outgrowers ha – 100% 140.000 120.000 21.786 21.786 21.786 21.786 21.786 21.786 21.786 21.652 21.286 20.538 100.000 19.656 80.000 60.000 94.462 94.470 94.441 94.265 94.331 94.329 94.099 93.296 91.203 87.408 81.717 40.000 20.000 0 2018 2
Slide 24: 100% CPO production
2. SIPEF group - Expansion 100% CPO production (including plasma and outgrowers – NO FFB) 700.000 2028 600.000 Own: 480 Kton Outg: 119 Kton 500.000 Total: 599 Kton 400.000 Outgrowers Own 300.000 200.000 100.000 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 The Connection to the world
Slide 25: Evolution mature-immature ha oil palm – 100%
2. SIPEF group - Expansion Evolution mature-immature ha oil palm – 100% 90.000 80.000 70.000 60.000 50.000 40.000 30.000 20.000 10.000 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Mature Immature The Connection to the world of Sustainable Tropical Agriculture 25
Slide 26: Yield per hectare CPO
2. SIPEF group - Expansion Yield per hectare CPO 7 6 5 Yield/hectare CPO 4 3 2 1 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 CPO/ha mature The Connection to the world of Sustainable Tropical Agriculture 26
Slide 27: Planted area (in hectares) – beneficial interest
2. SIPEF group - Expansion Planted area (in hectares) – beneficial interest 100.000 90.000 87 039 Ha 87 189 Ha 80.000 75 157 Ha 71 865 Ha 70.000 60.000 55 125 Ha 50.000 40 804 Ha 40.000 32 784 Ha 30.000 20.000 10.000 0 2005 2008 2016 2017 2.018 2023 2028 North Sum North Sum expansion Bengkulu Bengku
Slide 28: Planted hectares and production of CPO (BI)
2. SIPEF group - Expansion Planted hectares and production of CPO (sale of FFB not included) (BI) 180% + 74% 170% 160% 150% 140% BI hectares BI production 130% + 23% 120% 110% 100% The Connection to the world of Sustainable Tropical Agriculture 28
Slide 29: Musi Rawas expansion - Sumatra
2. SIPEF group - Expansion Musi Rawas expansion Sumatra The Connection to the world of Sustainable Tropical Agriculture 29
Slide 30: Musi Rawas – progress June 2018
2. SIPEF group - Expansion Musi Rawas – progress June 2018 Description PT AKL PT ARU PT AMR TOTAL Izin lokasi Ha 10 500 9 000 12 309 31 809 Izin lokasi Ha revised 6 590 5 712 12 305 24 607 OWN Compensated June 2018 3 900 2 716 5 726 12 343 80% Identified Ha 596 504 1 981 3 080 20% Potantial Ha 4 496
Slide 31: Musi Rawas – progress June 2018
2. SIPEF group - Expansion Musi Rawas – progress June 2018 Compensation Ha Cleared/Planted Ha June 2018 Correct Planted Cleared planted/ Area YTD 2017 jun/18 TOTAL YTD 2017 planted jun/18 jun/18 TOTAL compensated AKL 3 759 141 3 900 3 776 -407 151 44 3 564 91,4% ARU 2 626 90 2 716 1 558 -13 135 40 1
Slide 32: Musi Rawas – South Sumatra summary of project status
2. SIPEF group - Expansion Musi Rawas – South Sumatra summary of project status Latest update Izin Lokasi Expansion TOTAL Planted Identified Potential INTI PLASMA HGU Izin Lokasi HGU/IZIN Cleared development PT AKL 6 590 6 590 4 056 1 339 5 395 4 496 899 PT AKL II 3 137 3 137 0 1 569 1 569 1 307 261
Slide 33: Musi Rawas compensated area June 2018
2 000 4 000 6 000 8 000 10 000 12 000 14 000 0 okt/11 dec/11 feb/12 apr/12 jun/12 aug/12 okt/12 dec/12 feb/13 apr/13 jun/13 aug/13 2. SIPEF group - Expansion okt/13 Cumulative Compensated Area (Ha) dec/13 feb/14 apr/14 jun/14 Musi Rawas compensated area June 2018 aug/14 okt/14 dec/14 feb/15 apr/15 j
Slide 34: Musi Rawas planted area up to June 2018
2. SIPEF group - Expansion Musi Rawas planted area up to june 2018 Cumulative Planted Area (Ha) AKL ARU AMR 10000 9000 8000 7000 6000 Hectares 5000 4000 3000 2000 1000 0 34
Slide 35: Summary
Summary 1. SIPEF Group Company profile 2. SIPEF group - Expansion 3. SIPEF Group – Productions & prices 4. SIPEF group – Financial performance 5. Peer review 35 The Connection to the world of Sustainable Tropical Agriculture
Slide 36: September production 2018
3. SIPEF group – Productions & prices September production 2018 In Tonnes September 2018 September 2017 YoY% Palm oil own - Tolan Tiga Group 53 313 50 639 5,3% - UMW/TUM Group 32 423 29 928 8,3% - Agro Muko Group 65 336 58 384 11,9% - South Sumatra Group 3 990 360 1008% - Hargy Oil Palms 62 450 61 3
Slide 37: Markets
3. SIPEF group – Productions & prices Markets Rating Bullish inputs Bearish inputs Palm Oil Neutral - Malaysian production underperforming. - Latest MPOB report very disappointing, with slow exports SO 530 - Indonesia has increased the blending targets, and stocks increasing more than expected ND 54
Slide 38: Monthly palm oil (CIF Rotterdam USD/ton)
3. SIPEF group – Productions & prices Monthly palm oil (CIF Rotterdam USD/ton) 800 750 700 2016 650 2017 2018 600 550 500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec The Connection to the world of Sustainable Tropical Agriculture 38
Slide 39: Palm oil (FOB Malaysia) and its main competitor
0 200 400 600 800 1.000 1.200 1.400 1.600 1.800 2006M01 2006M04 2006M07 2006M10 2007M01 2007M04 2007M07 2007M10 2008M01 2008M04 2008M07 2008M10 2009M01 2009M04 2009M07 2009M10 2010M01 2010M04 2010M07 3. SIPEF group – Productions & prices 2010M10 2011M01 2011M04 2011M07 2011M10 Palm oil 2012M01 2012M
Slide 40: Monthly rubber (RSS3 Singapore USD/ton)
3. SIPEF group – Productions & prices Monthly rubber (RSS3 Singapore USD/ton) 2 800 2 600 2 400 2 200 2 000 2016 2017 1 800 2018 1 600 1 400 1 200 1 000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec The Connection to the world of Sustainable Tropical Agriculture 40
Slide 41: Monthly tea prices (Mombasa/Nairobi auctions USD/ton)
3. SIPEF group – Productions & prices Monthly tea prices (Mombasa/Nairobi auctions USD/ton) 3 300 3 100 2 900 2 700 2 500 2016 2017 2 300 2018 2 100 1 900 1 700 1 500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec The Connection to the world of Sustainable Tropical Agriculture 41
Slide 42: Summary
Summary 1. SIPEF Group Company profile 2. SIPEF group - Expansion 3. SIPEF Group – Productions & prices 4. SIPEF group – Financial performance 5. Peer review 42 The Connection to the world of Sustainable Tropical Agriculture
Slide 43: Sales – Consolidated gross margin
4. SIPEF group – Financial performance Sales – Consolidated gross margin Total consolidated turnover (including corporate) corporate – June 2018: 139 973 KUSD – June 2017: 157 017 KUSD 155 000 134 541 135 000 123 208 115 000 95 000 75 000 38,4% 55 000 36,4% 35 000 15 000 8 845 8 790 8 342 4 979 4 12
Slide 44: Gross profit per product
4. SIPEF group – Financial performance Gross profit –per product Gross profit (June YTD) In KUSD 2018 in % 2017 in % Palm 44 819 96,2% 51 731 90,1% Rubber -440 -0,9% 2 713 4,7% Tea 383 0,8% 345 0,6% Bananas 1 319 2,8% 1 966 3,4% Corporate and others 515 1,1% 717 1,2% Total 46 596 100,0% 57 472 100,0
Slide 45: Profit and loss statement (management presentation)
4. SIPEF group – Financial performance Profit and loss statement (management presentation) Profit and loss (June YTD) In KUSD 2018 2017 Gross Profit 46 597 57 472 Services and administration -16 306 - 14 930 Other operating income/(charges) -361 1 007 Operating result 29 930 43 549 Financial income
Slide 46: Profit and loss statement (management presentation)
4. SIPEF group – Financial performance Profit and loss statement (management presentation) Profit and loss (June YTD) In KUSD 2018 2017 Result from continuing operations 18 623 34 296 Gain on sale BDM-ASCO 7 380 0 Revaluation gain acquisition PT Agro Muko 0 79 324 Profit for the period 26 003 113 62
Slide 47: Sale BDM-ASCO insurance
4. SIPEF group – Financial performance Profit and loss statement Sale BDM-ASCO insurance • As announced on 18 December 2017, the sale of BDM-ASCO was finalised and handed over on 7 June 2018 • Total net cash amount received: 20 467 KUSD (20 804 KUSD – 0.337 KUSD) • Total one-off gain: 7 380 KUSD • D
Slide 48: Consolidated balance sheet
4. SIPEF group – Financial performance Consolidated balance sheet Balance sheet In KUSD (management presentation) June 2018 December 2017 Goodwill 104 782 103 008 Biological assets- bearer plants 271 143 268 086 Other non-current assets 366 029 361 408 Net assets held for sale 0 12 010 Net current a
Slide 49: Consolidated cash flow
4. SIPEF group – Financial performance Consolidated cash flow Cash Flow In KUSD (management presentation) June 2018 June 2017 Cash flow from operating activities 48 471 58 097 Change in net working capital -21 304 6 854 Income taxes paid -11 154 -2 021 Cash flow from operating activities after tax 1
Slide 50: Value per hectare
4. SIPEF group – Financial performance Value per hectare Sensitivity 30/06/2018 Market price (closing 30/06/2018) 63,00 EUR Share price EUR @ USD per hectare 50,00 8.908 Number of shares 10.579.328 55,00 9.733 Own shares -123.300 60,00 10.559 10.456.028 63,00 11.054 65,00 11.384 EUR/USD 1,1684 70,00
Slide 51: Dividend history
4. SIPEF group – Financial performance Dividend history Dividend History Sipef 1,80 35% 32% 32% 30% 31% 31% 30% 1,60 30% 1,40 25% 25% 25% 24% 25% 23% 1,20 22% 21% 20% 1,00 17% 1,70 1,70 0,80 1,60 1,50 15% 0,60 1,25 1,25 1,25 1,10 10% 0,40 0,80 0,80 0,60 5% 0,20 0,40 0,30 0,30 0,00 0% 2004 2005 2006
Slide 52: Prospects – comments press release October 18, 2018
4. SIPEF group – Financial performance Prospects – comments press release October 18, 2018 Production As in previous quarters, we observed an enduring increase in palm oil fruit and palm oil production volumes across all SIPEF group plantations at the beginning of the fourth quarter. We maintain our
Slide 53: Prospects – comments press release October 18, 2018
4. SIPEF group – Financial performance Prospects – comments press release October 18, 2018 Cash flow and expansion • Investment policy remains fully focused on expanding South Sumatra palm oil activities (PT Dendymarker and Musi Rawas) • DIL will be increased to more than 10 000 hectares in the futu
Slide 54: Summary
Summary 1. SIPEF Group Company profile 2. SIPEF group - Expansion 3. SIPEF Group – Productions & prices 4. SIPEF group – Financial performance 5. Peer review 54 The Connection to the world of Sustainable Tropical Agriculture
Slide 55: Peer review disclaimer
5. Peer review Disclaimer The information contained in this section is provided for your general information only and is not designed nor intended to offer anything more than information only. The information with respect to the companies included in the Peer Review was retrieved from publicly avail
Slide 56: Principle assumptions
5. Peer review Principle assumptions • Benchmark of main industrial competitors • Age profile based on own ageing interpretation • Market capitalization is calculated based on the average exchange rate & average share price of the year • Benchmark based on own CPO productions of competitors: Tons CP
Slide 57: Own planted oil palm hectares in KHa (2017)
5. Peer review Own planted Oil Palm Hectares in KHa (2017) Sime Darby 603 Golden Agri-Resources 400 Felda Global Ventures 342 Salim Ivomas Pratama 248 Wilmar International 240 Astra Agro Lestari 225 Kuala Lumpur Kepong 211 First Resources 180 IOI Corporation 174 Plantation Genting Plantations 144 In
Slide 58: Age profile: average age planted hectares (2017)
5. Peer review Age Profile: Average age planted hectares (2017) Golden Agri-Resources 16,0 Astra Agro Lestari 15,2 Salim Ivomas Pratama 15,0 London Sumatra Indon 15,0 Felda Global Ventures 14,5 IOI Corporation 14,5 Socfinasia 14,1 Sime Darby 13,2 Kuala Lumpur Kepong 12,4 Plantation R.E.A. Holdings 1
Slide 59: FFB Yield – MT/ha (2017)
5. Peer review FFB Yield – MT/ha (2017) SIPEF* 23,9 Socfinasia 22,2 IOI Corporation 21,7 Kuala Lumpur Kepong 21,4 Golden Agri-Resources 20,5 MP Evans 19,9 Sime Darby 19,4 Astra Agro Lestari 19,1 Wilmar International 19,0 Plantation Genting Plantations 18,4 Integrated First Resources 18,2 Sipef Anglo
Slide 60: Extraction rate from FFB to CPO (2017)
5. Peer review Extraction rate from FFB to CPO (2017) MP Evans 23,6% Eagle High Plantations 23,4% SIPEF* 23,4% Socfinasia 22,9% London Sumatra Indon 22,9% R.E.A. Holdings 22,8% Bumitama 22,7% First Resources 22,2% Golden Agri-Resources 22,2% Socfinaf 22,0% Plantation Salim Ivomas Pratama 21,9% Integ
Slide 61: CPO Yield – MT/ha (2017)
5. Peer review CPO Yield – MT/ha (2017) SIPEF* 5,58 Socfinasia 5,53 MP Evans 4,70 Kuala Lumpur Kepong 4,64 IOI Corporation 4,61 Golden Agri-Resources 4,55 Sime Darby 4,14 First Resources 4,04 Genting Plantations 3,94 Plantation Astra Agro Lestari 3,94 Integrated Wilmar International 3,88 Sipef Bumit
Slide 62: Market Cap in MUSD (2017)
5. Peer review Market Cap in MUSD (2017) Wilmar International 13.630 Sime Darby 13.501 IOI Corporation 6.588 Kuala Lumpur Kepong 5.985 Golden Agri-Resources 3.022 Astra Agro Lestari 1.939 First Resources 1.890 Genting Plantations 1.805 Felda Global Ventures 1.339 Plantation Bumitama 826 Integrated S
Slide 63: Dividend Yields (based on average market cap 2017)
5. Peer review Dividend Yields (based on average market cap 2017) Socfinasia 5,0% MP Evans 3,7% First Resources 3,7% Astra Agro Lestari 3,5% London Sumatra Indon 3,1% Wilmar International 2,9% Felda Global Ventures 2,8% Sime Darby 2,7% Bumitama 2,6% SIPEF 2,5% Plantation Genting Plantations 2,4% Int
Slide 64: Price Earning Ratio (based on average market cap 2017)
5. Peer review Price Earning Ratio (based on average market cap 2017) Felda Global Ventures 45,4 Golden Agri-Resources 40,8 IOI Corporation 38,1 Genting Plantations 26,0 Kuala Lumpur Kepong 25,9 Sime Darby 23,8 MP Evans 19,3 Salim Ivomas Pratama 16,3 Socfinasia 15,8 Plantation First Resources 13,7 I
Slide 65: The Connection to the world of Sustainable Tropical Agriculture
The Connection to the world of Sustainable Tropical Agriculture 65