Slide 1: SIPEF Analyst presentation August 14, 2023
SIPEF Analyst presentation August 14, 2023 1
Slide 2: Summary
Summary SIPEF group - Company profile SIPEF group - Sustainability SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects
Slide 3: The Connection to the world of Sustainable Tropical Agriculture
The Connection to the world of Sustainable Tropical Agriculture 3
Slide 4: SIPEF business strategy is built on controlled growth as an upstream player
SIPEF business strategy is built on controlled growth as an upstream player and be the preferred supplier of traceable, sustainable, high-quality products looking at diversification into the targeted markets 4
Slide 5: SIPEF at a glance
SIPEF AT A GLANCE Belgium USD 527 million Headquarters Total sales in FY2022 1919 More than More than 22.000 32.000 T employees of bananas produced More than Listed on the 400.000 T of certified CPO produced EURONEXT stock exchange 100% Rainforest alliance CERTIFIED RSPO COMPLIANT 5
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Slide 7: Planted hectares per 31 December 2022
PLANTED HECTARES PER 31 DECEMBER 2022 Hectares 2022 Indonesia PNG Ivory Coast 100% Palm 64.766 13.588 0 78.354 Rubber 1.954 0 0 1.954 Bananas 0 0 945 945 Other 0 0 31 31 Total planted 66.720 13.588 976 81.283 7
Slide 8: Evolution planted hectares palm
EVOLUTION PLANTED HECTARES PALM EVOLUTION OWN PALM HECTARES 90.000 +219% 80.000 70.000 60.000 50.000 40.000 30.000 20.000 10.000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Slide 9: Evolution own CPO productions
EVOLUTION OWN CPO PRODUCTIONS EVOLUTION OWN CPO PRODUCED 500.000 +351% 450.000 400.000 350.000 300.000 250.000 200.000 150.000 100.000 50.000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E 2023 2024 2025 2026 2027
Slide 10: Evolution total CPO productions
EVOLUTION TOTAL CPO PRODUCTIONS EVOLUTION TOTAL CPO PRODUCTION 600.000 500.000 400.000 300.000 200.000 100.000 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10 Tolan Tiga Group Agro Muko Group Hargy Oil Palm Ltd. UMW Group South Sumatra Group
Slide 11: Summary
Summary SIPEF group - Company profile SIPEF group - Sustainability SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects
Slide 12: Sustainability is at the core of SIPEF's business model
Sustainability is at the core of SIPEF’s business model and the Group has made a top-down commitment to ensuring its activities make a positive contribution to the environment, society and local economies. 12
Slide 13: Social initiatives
44 Schools eE.f 15 Day care facilities 39 Clinics Lint de 8 436 Houses OIL PALM SMALLHOLDERS BY COUNTRY SCHEME VS. INDEPENDENT OIL PALM SMALLHOLDERS 5513 Indonesia 60% 5.882 Scheme 3635, Smallholders Papua New Guinea 64% 3266 Independent Smaliholders 36% SOCIAL INITIATIVES 13
Slide 14: Environmental initiatives
NO DEFORESTATION PROTECTION AND RESTORATION DEFORESTATION MONITORING BIODIVERSITY MONITORING AND NO HUNTING LAND USE CHANGE VERIFICATION SUPPORTING BIODIVERSITY PROGRAMMES AND LANDSCHAPES FIRE PREVENTION AND MANAGEMENT ENVIRONMENTAL INITIATIVES 14
Slide 15: geosipef.com
http://www.geosipef.com / 15
Slide 16: Environmental initiatives
ENVIRONMENTAL INITIATIVES 16
Slide 17: Governance initiatives
Corporate Governance Charter Ethics Policy Code of Conduct General Privacy Policy Grievance Whistleblowing Poll olicy ! ale Policies eS GOVERNANCE INITIATIVES 17
Slide 18: Summary
Summary SIPEF group - Company profile SIPEF group - Sustainability SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects
Slide 19: Land use for vegetable oils in hectares
LAND USE FOR VEGETABLE OILS IN HECTARES 350.000.000 300.000.000 250.000.000 200.000.000 150.000.000 100.000.000 50.000.000 0 1990 1997 2004 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1991 1992 1993
Slide 20: To feed a global population set to reach 9.8 billion by 2050
To feed a global population that is set to reach 9.8 billion by 2050 we will need to use less land to produce 60% more food United Nations. Feeding the World Sustainably. 2012. 20
Slide 21: Vegetable oil production
VEGETABLE OIL PRODUCTION 2050 307 MT - 340 MT 2022 247 MT 1994 93.1 MT 20% 32% 15% 5% 34% 20% 8% 5% 8% 11% 11% 24% 21 Source: Oilworld
Slide 22: Oil and fat consumption per capita
OIL AND FAT CONSUMPTION PER CAPITA Oil and fat per capita consumtion (in Kg) 90 81,19 = 3 billion people 80 78,72 74,61 70 59,43 60 55,77 52,37 50 39,05 40 35,54 30,26 30 27,81 25,52 25,86 21,46 20,13 20 17,47 15,57 13,75 14,04 10 0 EU-28 USA China India Indonesia Pakistan Nigeria Brazil World 2022
Slide 23: Palm oil production in the world
PALM OIL PRODUCTION IN THE WORLD 2022 Palm oil production Total of 78,9 Mn tonnes Indonesia 5% 6% Malaysia 3% 4% Thailand Africa 23% 59% Middle & South America Other countries 23 Source: Oilworld
Slide 24: Resources used per vegetable oil
RESOURCES USED PER VEGETABLE OIL 24
Slide 25: Area of land needed to meet global vegetable demand per oil (2019)
AREA OF LAND NEEDED TO MEET TOTAL GLOBAL VEGETABLE DEMAND PER VEGETABLE OIL (2019) IN MILLION OF HECTARES Palm oil 77 Sunflower oil 312 Rapeseed 318 Soybean oil 478 Olive oil 818 Coconut oil 830 Groundnut oil 1.590 Cottonseed oil 1.860 Sesameseed oil 2.940 0 500 1.000 1.500 2.000 2.500 3.000 25 Sour
Slide 26: Sipef CAGR since 1997 = 4,67%
Sipef CAGR since 1997 = 4,67% 26
Slide 27: Yield per hectare Indonesia and Malaysia
YIELD PER HECTARE INDONESIA AND MALAYSIA Sipef average CPO yield 2022 = 5,24 T/Ha 27
Slide 28: Sustainable palm oil
SUSTAINABLE PALM OIL A SUSTAINABLE SOLUTION ➢ HALTING DEFORESTATION; ➢ TREATING COMMUNITIES AND WORKERS FAIRLY; ➢ PROTECTING WILDLIFE AND THE ENVIRONMENT. Less than 3 million tons is sold as IP/‘segregated’ (100% traceable) SIPEF = 100% compliant and > 400.000 tons (palm products) ‘segregated’ 28
Slide 29: Industrial oil palm expansion
INDUSTRIAL OIL PALM EXPANSION 29 Source: TheTreeMap
Slide 30: European Commission approves phase-out of palm oil-based biofuel by 2030
The European Commission has officially approved a measure to phase out palm oil- based biofuel by 2030. 30
Slide 31: Biodiesel use of major feedstock
BIODIESEL USE OF MAJOR FEEDSTOCK Biodiesel use of major feedstock (Mn T) 60,00 50,00 13,6 11,4 40,00 10,2 10,4 9,5 7,2 8,3 6,9 6,5 7,6 6,3 30,00 5,9 6,7 6,4 5,5 6,9 6,8 4,6 7,2 17,4 18,0 3,7 20,00 6,3 7,0 17,6 17,1 14,6 2,7 6,2 6,2 11,5 2,5 10,8 1,8 6,4 10,2 9,1 8,6 5,9 7,0 10,00 5,3 1,4 5,0 4,1 4,1
Slide 32: Biodiesel worldwide
BIODIESEL WORLDWIDE Biodiesel worldwide 2022 Total of 51,3 Mn tonnes Biodiesel worldwide 2017 Total of 35,8 Mn tonnes 14% 10% 5% 35% 4% 31% 0% 6% 7% 1% 1% 19% 14% 27% 24% 32 Source: Oilworld
Slide 33: Palm oil use for biodiesel EU
PALM OIL USE FOR BIODIESEL EU 2022: Palm oil use for Biodiesel Total of 18,0 Mn tonnes EU 23% 2017 Palm oil use for Biodiesel Total of 11,6 Mn tonnes 4,1Mn tonnes EU 36% 4,2 Mn tonnes 13,9 Mn tonnes 7,4 7,4Mn Mn tonnes Non EU tonnes 64% NON EU 77% EU Non EU EU NON EU 33 Source: Oilworld
Slide 34: Summary
Summary SIPEF group - Company profile SIPEF group - Sustainability SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects
Slide 35: Group productions – crude palm oil
GROUP PRODUCTIONS – CRUDE PALM OIL Palm Oil June 2023 June 2022 Variance Own Tolan Tiga Group 27 584 32 914 -16,19% Umbul Mas Wisesa Group 14 919 21 024 -29,04% Agro Muko Group 36 191 39 933 -9,37% South Sumatra Group 20 941 11 788 77,65% Hargy Oil Palms 49 245 50 505 -2,49% Total own 148 879 156 16
Slide 36: Monthly group productions – crude palm oil 2023
MONTHLY GROUP PRODUCTIONS – CRUDE PALM OIL 2023 45.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5.000 0 January February March April May June July August September October November December Mtd LY Mtd CY Est CY 36
Slide 37: Group productions – bananas
GROUP PRODUCTIONS – BANANAS Bananas June 2023 June 2022 Variance Azaguie* 6 105 6 301 -3,11% Agboville* 3 963 4 460 -11,14% Motobé 3 961 4 434 -10,67% Lumen 5 037 35 14291,43% Akoudje 164 0 Total Bananas 19 230 15 230 26,26% * Comparative figures include Bamako productions in 2022 and have been rest
Slide 38: Bull and bear
BULL AND BEAR Rating Bullish inputs Bearish inputs Palm Oil Neutral - Despite growing palm crops, production - Still very slow demand will be equal / lower in 2023 - High inflation and high interest rates have Aug 960 - Indo B35 consuming 1.5 mln add, but killed demand in the global food industry Se
Slide 39: Ex-mill gate selling prices
EX-MILL GATE SELLING PRICES EMG 30/06/2023 30/06/2022 Indo 738 919 PNG 1.038 1.251 Total 878 1.097 % sold 69% 65% 39
Slide 40: CPO prices 2022 – 2023
CPO PRICES 2022 – 2023 Crude Palm Oil in $/mt Source: Oil World CIF Rotterdam 1 800 1 600 1 400 1 200 1 000 800 Jan Feb March Ap May June July Aug Sept Oct Nov Dec 2022 2023 40
Slide 41: Spread crude palm oil – soybean oil
1100 1300 1500 1700 1900 500 700 900 2010M01 2010M04 2010M07 2010M10 2011M01 2011M04 2011M07 2011M10 2012M01 2012M04 2012M07 2012M10 2013M01 2013M04 2013M07 2013M10 2014M01 2014M04 2014M07 2014M10 2015M01 2015M04 2015M07 2015M10 2016M01 PALM_OIL 2016M04 2016M07 2016M10 2017M01 2017M04 2017M07 2017M1
Slide 42: Summary
Summary SIPEF group - Company profile SIPEF group - Sustainability SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects
Slide 43: June gross margin in KUSD
JUNE GROSS MARGIN IN KUSD Gross margin palm Gross margin bananas 250.000 18.000 233.336 16.000 15.351 199.575 200.000 14.000 12.000 10.992 150.000 10.000 129.066 8.000 100.000 6.000 71.785 4.000 50.000 1.833 2.000 853 0 0 2023 2022 2023 2022 Turnover palm GM palm Turnover bananas GM bananas 43
Slide 44: Profit and loss statement – June 2023
PROFIT AND LOSS STATEMENT – JUNE 2023 In KUSD June '23 June ‘22 Diff Palm 71.785 129.066 -57.281 Rubber -1.940 -1.941 1 Tea 77 100 -23 Bananas & horticulture 1.875 964 911 Corporate 923 892 32 Gross margin 72.721 129.080 -56.359 G&A -22.994 -24.082 1.088 Other operating result 1.542 -351 1.893 Opera
Slide 45: Balance sheet – June 2023
BALANCE SHEET – JUNE 2023 In KUSD (management presentation) 30/06/2023 31/12/2022 Biological assets (depreciated costs) - bearer plants 317 197 316 714 Goodwill 104 782 104 782 Other fixed assets 400 391 383 287 Receivables > 1 year 32 334 28 287 Assets held for sale 13 520 13 520 Net current assets
Slide 46: CPO inventory – June 2023
CPO INVENTORY- JUNE 2023 CPO inventory overview 31.332 10 a 2 29.016 —2022 —2023 46
Slide 47: Evolution net tax position
EVOLUTION NET TAX POSITION • The evolution of the net tax receivable can be split into: 2019 2020 2021 2022 06/2023 Indonesia 7.908 409 -10.214 -3.242 3.641 PNG 6.635 6.907 -7.770 -28.690 -18.790 Europe + IC -236 -237 108 -408 -2.456 Total 14.307 7.079 -17.877 -32.340 -17.605 • Net current tax payab
Slide 48: Cash flow – June 2023
CASH FLOW– JUNE 2023 In KUSD (management presentation) 30/06/2023 30/06/2022 Cash flow from operating activities before change in net working capital 77 457 125 211 Change in net working capital - 74 -29 452 Income taxes paid -26 194 -18 277 Cash flow from operating activities after tax 51 189 77 48
Slide 49: Value per hectare
VALUE PER HECTARE Sensitivity June 2023 Stock price @ USD per hectare 40,00 5.439 50,00 6.887 60,00 8.336 70,00 9.785 80,00 11.234 90,00 12.683 BOOKVALUE PER HECTARE = 10 085 USD/Ha 49
Slide 50: Summary
Summary SIPEF group - Company profile SIPEF group - Sustainability SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects
Slide 51: Prospects – 14/08/2023
PROSPECTS – 14/08/2023 ❖Production ➢ Steady production growth expected in Q3 in Indonesia ➢ Declining production expected in PNG in Q3 ➢ Unlikely that projected production increase of 5.1% will be met by year-end ➢ SIPEF still on track to reach 600.000 tonnes of CPO by 2030 ➢ New developments in Ivo
Slide 52: Prospects – 14/08/2023
PROSPECTS – 14/08/2023 ❖Results ➢ 69% of the projected palm oil volume sold at USD 878 per tonne EMG ❑ PNG 93% at 1 038 USD/tonne EMG ❑ Indonesia 56% at 738 USD/tonne EMG ➢ Sales prices continue to be impacted by local export levy/taxes in Indonesia ➢ Production cost no longer impacted by increasing
Slide 53: The Connection to the world of Sustainable Tropical Agriculture
The Connection to the world of Sustainable Tropical Agriculture 53