Slide 1: Analyst presentation
SIPEF Analyst presentation February 11, 2021 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 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 3
Slide 4: Continuous production, diversified in product and origin
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 orient
Slide 5: Company profile: Worldwide
SIPEF group – Company profile Worldwide The Connection to the world of Sustainable Tropical Agriculture 5
Slide 6: Company profile: Indonesia
SIPEF group – Company profile Indonesia 6
Slide 7: Company profile: Papua New Guinea
SIPEF group – Company profile Papua New Guinea The Connection to the world of Sustainable Tropical Agriculture 7
Slide 8: Planted hectares summary 100% – December 2020
SIPEF group – Company profile Planted hectares summary 100% – 31 December 2020 2020 Indonesia PNG Ivory Coast Hectares 100% % of total Group share % of total Palm 62.785 13.689 0 76.473 91% 71.130 91% Rubber 4.816 0 0 4.816 6% 4.346 6% Tea 1.786 0 0 1.786 2% 1.612 2% Bananas 0 0 780 780 1% 780 1% Ot
Slide 9: 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 93 143Ha 94 248Ha 90.000 84 634 Ha 82 968 Ha 78 213 Ha 80.000 69 439 Ha 70.000 56 811 Ha 60.000 48 093 Ha 50.000 40.000 30.000 20.000 10.000 0 2005 2008 2016 2017 2019 2020 20
Slide 10: Total supply bases – mature palm
SIPEF group – Company profile Total supply bases – mature palm Total supply base area - mature palm 120.000 100 658 Ha 100.000 6.562 6.562 6.562 6.562 5.948 5.115 3.894 80.000 3.084 26.813 26.813 26.813 2.980 2.788 26.305 26.813 3.284 24.404 20.503 10.079 11.101 13.143 16.267 60.000 11.974 11.868 12
Slide 11: CPO production LTBP 2020-2030
SIPEF group – Company profile CPO production LTBP 2020 - 2030 CPO production - own & outgrowers 600.000 40.081 38.132 35.215 30.678 500.000 24.716 18.634 176.102 169.240 13.044 158.918 141.860 8.657 121.122 400.000 98.416 6.069 76.730 57.267 3.990 40.445 329 27.773 19.973 52.296 52.155 55.876 55.240
Slide 12: South Sumatra – progress December 2020
SIPEF group – Company profile South Sumatra - progress December 2020 12 The Connection to the world of Sustainable Tropical Agriculture
Slide 13: South Sumatra – full scope of development
SIPEF group – Company profile South Sumatra – full scope of development December 2020 Latest update Musi rawas Dendymarker Total Total Planted / Cleared 14 014 9 648 23 662 Identified 8 791 413 9 204 Potential development 22 805 10 061 32 866 INTI 19 004 7 280 26 284 PLASMA 3 801 2 781 6 582 13 The
Slide 14: Musi Rawas progress December 2020
SIPEF group – Company profile Musi Rawas progress December 2020 Acquired Secured MUSI RAWAS Ha Ha PT AKL 5.084 4.661 92% PT ARU 3.764 2.956 79% PT AMR 8.152 6.398 78% Total OLD 17.000 14.015 82% Potential Ha 18.507 91,9% AMR III 33 0 0% AMRS 247 0 0% AKLE 144 0 0% Total NEW 425 0 0% Potential Ha 4.2
Slide 15: 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 15
Slide 16: Population growth and future food demand
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 17: Oil and fat consumption per capita
SIPEF group – Palm oil in the world Oil and fat consumption Oil and fat consumption per capita (in Kg) Source: Oilworld 80 72,58 70 67,32 59,43 60 55,77 54,95 +55% 49,47 50 39,05 40 35,54 29,93 30 27,55 25,52 26,07 25,86 21,46 20 18,29 15,57 15,15 14,04 10 0 EU-28 USA China India Indonesia Pakistan
Slide 18: Land input and demand drivers
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 19: 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 19
Slide 20: Vegetable oils
SIPEF group – Palm oil in the world Palm oil in the world - Vegetable oils Source: Oilworld 2019 : 234,7 million Ton 1994/95: 93,1 million tonnes Palm oil Others Palm oil 32% 19% 16% Palm kernel and coconut oil 5% Other oils/animal fats 37% Soya oil 21% Sunflower oil 9% Soybean oil Palm kernel and R
Slide 21: Palm oil production
SIPEF group – Palm oil in the world Palm oil in the world - Palm oil production 2019 Palm oil production Source: Oilworld Total of 75,6 Mn tonnes Middle & South America Other countries 4% 7% Africa 2% Thailand 4% Indonesia Malaysia 57% 26% Indonesia Malaysia Thailand Africa Middle & South America Ot
Slide 22: 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 23: 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 23
Slide 24: 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 24
Slide 25: The oil palm controversy
SIPEF group – Palm oil in the world The oil palm controversy 25
Slide 26: Sustainable palm oil
SIPEF group – Palm oil in the world Palm oil in the world - Sustainable palm oil 3,24 Million Ha RSPO certified production area in 2020 RSPO Certified Ha (in KHa) 3 500 3 000 2 500 2 000 1 500 1 000 500 0 The Connection to the world of Sustainable Tropical Agriculture 26
Slide 27: 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) 50,00 45,00 40,00 10,16 9,46 35,00 8,26 6,52 30,00 7,62 5,93 6,69 6,35 25,00 5,50 6,94 6,84 4,57 7,21 20,00 3,67 17,62 6,30 6,96 14,61 2,71 6,20 6,23 11,47 15,0
Slide 28: Biodiesel worldwide
SIPEF group – Palm oil in the world Biodiesel worldwide Source: Oilworld Biodiesel worldwide 2017 Biodiesel worldwide 2019 Total of 35,8 Mn tonnes Total of 45,7 Mn tonnes 11% 10% 4% 4% 0% 31% 39% 6% 7% 1% 1% 14% 19% 27% 25% Palm Oil Soya Oil Rapeseed Oil Sunflower Oil Palm oil Soya Rapeseed oil Sunf
Slide 29: Palm oil use for biodiesel EU
SIPEF group – Palm oil in the world Palm oil use for biodiesel EU Source: Oilworld 2019: Palm oil use for Biodiesel 2017 Palm oil use for Biodiesel Total of 17,6 Mn tonnes Total of 11,7 Mn tonnes EU 26% EU 36% 4,5 Mn tonnes 4,2 Mn tonnes 7,4 Mn tonnes 13,1 Mn tonnes Non EU 64% NON EU 74% EU Non EU E
Slide 30: 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 30
Slide 31: Group production palm oil – December 2020
SIPEF group – Productions & prices Group production PALM OIL – December 2020 Palm Oil 2020 2019 Variance Own Tolan Tiga Group 67 310 70 489 -4,51% Umbul Mas Wisesa Group 38 413 38 089 0,85% Agro Muko Group 83 545 82 007 1,88% South Sumatra Group 15 772 14 227 10,86% Hargy Oil Palms 66 432 59 829 11,
Slide 32: Group production rubber – December 2020
SIPEF group – Productions & prices Group production RUBBER – December 2020 Rubber 2020 2019 Variance Own Tolan Tiga Group 918 972 -5,51% Melania 2 695 2 379 13,28% Agro Muko 1 686 2 144 -21,34% Total own 5 300 5 495 -3,55% Outgrowers Tolan Tiga Group 711 831 -14,44% Total Rubber 6 011 6 326 -4,98% 3
Slide 33: Group production tea and bananas – December 2020
SIPEF group – Productions & prices Group production TEA and BANANAS – December 2020 Tea 2020 2019 Variance Melania - own 2 664 2 331 14,29% Melania - outgrowers 98 0 - Total Tea 2 762 2 331 18,49% Bananas 2020 2019 Variance Azaguie 1 5 152 4 976 3,54% Azaguie 2 8 447 9 928 -14,92% Agboville 8 988 8
Slide 34: Bull & Bear
SIPEF group – Production & prices Bull & Bear Rating Bullish inputs Bearish inputs - Super tight stocks in Mal and Indo. Mal lowest - Absolute high price and massive inverses will reduce exports / kill Palm Oil supported since 2007. demand Feb 1045 - Production has started the low cycle. - Market ex
Slide 35: CPO prices CIF Rotterdam 2019–2020
SIPEF group – Production & prices CPO prices CIF Rotterdam 2019 – 2020 Crude Palm Oil in $/mt Source: Oil World 1 000 CIF Rotterdam 950 900 850 800 750 700 650 600 550 500 450 J F M A M J J A S O N D 2019 2020 35
Slide 36: Spread crude palm oil – soybean oil
1 000 1 100 1 200 1 300 1 400 500 600 700 800 900 2010M01 2010M03 2010M05 2010M07 2010M09 2010M11 2011M01 2011M03 2011M05 2011M07 2011M09 2011M11 2012M01 2012M03 2012M05 2012M07 2012M09 2012M11 2013M01 2013M03 2013M05 2013M07 2013M09 2013M11 SIPEF group – Production & prices 2014M01 Spread crude pal
Slide 37: RSS3 rubber prices 2019–2020
SIPEF group – Production & prices RSS3 Rubber prices 2019 – 2020 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 2019 2020 The Connection to the world of Sustainable Tropical Agriculture 37
Slide 38: Tea prices 2019–2020
SIPEF group – Production & prices Tea prices 2019 – 2020 Tea in $/mt Source: Worldbank average auction Mombasa 2 650 2 550 2 450 2 350 2 250 2 150 2 050 1 950 1 850 1 750 J F M A M J J A S O N D 2019 2020 The Connection to the world of Sustainable Tropical Agriculture 38
Slide 39: 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 39
Slide 40: Exchange rates
SIPEF group – Financial statements Exchange rates The Connection to the world of Sustainable Tropical Agriculture 40
Slide 41: Income statement – actuals CY vs actuals PY
SIPEF group - Financial statements Income statement – actuals CY vs actuals PY IN KUSD 2020 actuals 2019 actuals % diff Gross margin Palm 59.746 34.445 +73% Rubber -1.814 -2.244 -19% Tea -788 -370 113% Bananas 4.199 4.548 -8% Horticulture 191 148 29% G&A including corporate -30.750 -30.846 0% Other
Slide 42: Income statement – tax expense detail
SIPEF group - Financial statements Income statement – tax expense detail* Dec 2020 Jun 2020 Result before tax 28 065 2 468 23,3% 12,3% Theoretical tax charge -6 545 -304 Corrections on last year +76 0 Change in tax-% +685 +685 Impairment/Reversal on DT -3 130 -964 Other non-deductible -1 915 -1 103
Slide 43: Income statement per semester
SIPEF group - Financial statements Income statement per semester IN KUSD 31/12/2020 30/06/2020 2nd sem Operating result 30.778 4.621 26.157 Financial result -2.713 -2.153 -560 Profit before tax 28.065 2.468 25.597 Tax -10.828 -1.686 -9.142 Profit after tax 17.237 782 16.455 Associated companies -1.0
Slide 44: Consolidated balance sheet
SIPEF group - Financial statements Consolidated balance sheet (management presentation) In KUSD (management presentation) 2020 2019 Biological assets (depreciated costs) - bearer plants 315 826 306 342 Goodwill 104 782 104 782 Other fixed assets 359 994 365 412 Receivables > 1 year 16 101 13 442 Net
Slide 45: Cash flow (management presentation)
SIPEF group - Financial statements Cash flow (management presentation) IN KUSD 2020 2019 Diff Cash flow from operations before working capital 73.669 49.927 23.742 Working capital movements -1.314 -3.348 2.034 Taxes paid -3.572 -14.692 11.120 Cash flow from operations (a) 68.783 31.887 36.896 Cash f
Slide 46: Financial covenant LT loan per December 2020
SIPEF group - Financial statements Financial covenant LT loan per 31 December 2020 • Level of financial covenant according to new LT loan dd August 2019: 31/12/2019 3,50x 30/06/2020 3,25x 31/12/2020 3,00x 30/06/2021 2,75x 31/12/2021 and thereafter 2,50x • At December 31, 2020 debt/ebitda was 2,06x →
Slide 47: Dividend proposal
SIPEF group - Financial statements Dividend proposal 47 The Connection to the world of Sustainable Tropical Agriculture
Slide 48: 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 48
Slide 49: Prospects – production and markets
SIPEF group – Prospects Prospects – 11/02/2021 ✓ Production ➢ Prospects for palm oil production for the first quarter, based on the count of the hanging fruits, remains positive for the Indonesian activity with the main growth expected in Musi Rawas; ➢ Prospects for palm oil production in HOPL in th
Slide 50: Prospects – cash flow, expansion and result
SIPEF group – Prospects Prospects – 11/02/2021 ✓ Cash flow and expansion ➢ Investment policy remains to be fully focused on development of palm oil activities in South Sumatra; ➢ Steadily continuing on replanting of own palm plantation areas in Dendymarker and plasma; ➢ Expansion of the processing c
Slide 51: The Connection to the world of Sustainable Tropical Agriculture
The Connection to the world of Sustainable Tropical Agriculture 51