Slide 1: SIPEF Analyst presentation August 14, 2024
SIPEF Analyst presentation August 14, 2024 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
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
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 444 million Headquarters Total sales in FY2023 1919 More than More than 23.000 40.000 T employees of bananas produced More than Listed on the 390.000 T of CPO produced EURONEXT stock exchange 100% Rainforest alliance CERTIFIED RSPO COMPLIANT 5
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Slide 7: Planted hectares per 31 December 2023
PLANTED HECTARES PER 31 DECEMBER 2023 Hectares 2023 Indonesia PNG Ivory Coast 100% Palm 68.621 13.550 0 82.171 Rubber 1.901 0 0 1.901 Bananas 0 0 1.229 1.229 Other 0 0 29 29 Total planted 70.522 13.550 1.258 85.329 7
Slide 8: Evolution planted hectares palm
EVOLUTION PLANTED HECTARES PALM EVOLUTION OWN PALM HECTARES +227% 90.000 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 500.000 tons EVOLUTION OWN CPO PRODUCED +371% 500.000 450.000 400.000 350.000 300.000 250.000 200.000 150.000 100.000 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 2022 2023 2024E 20
Slide 10: Evolution total CPO productions
EVOLUTION TOTAL CPO PRODUCTIONS Total CPO production 600.000 tons 600 000 31 518 32 174 32 137 30 351 28 857 26 526 23 090 500 000 19 550 163 715 166 102 150 418 158 464 165 743 14 481 138 874 122 566 106 570 11 232 89 984 400 000 7 263 57 518 59 794 59 261 57 327 57 126 78 214 59 494 50 202 58 759
Slide 11: Evolution turnover - equity - NFP - result
EVOLUTION TURNOVER - EQUITY – NFP - RESULT 1.000 2017: capital increase of 97 MUSD 800 2013: change to IAS 41R 600 2005: adoption IFRS Turnover In MUSD Equity 400 2004: capital increase 16 MEUR Net financial position Result, share of the Group 200 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Slide 12: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects
Slide 13: 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 14: 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. 14
Slide 15: Vegetable oil production
VEGETABLE OIL PRODUCTION 2050 307 MT - 340 MT 2023 255 MT 1994 93.1 MT 19,2% 32,1% 15% 4,5% 34% 8,8% 20% 5% 8% 11% 12,0% 23,4% 15 Source: Oilworld
Slide 16: 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 17: Palm oil production in the world
PALM OIL PRODUCTION IN THE WORLD 2023 Palm oil production Total of 81,6 Mn tonnes 6% Indonesia 5% 2% 4% Malaysia Thailand 23% 60% Africa Middle & South America Other countries 17 Source: Oilworld
Slide 18: Resources used per vegetable oil
RESOURCES USED PER VEGETABLE OIL 18
Slide 19: Area of land needed to meet global vegetable demand per oil
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 19 Sour
Slide 20: Sipef CAGR since 1997 = 4,67%
Sipef CAGR since 1997 = 4,67% 20
Slide 21: Yield per hectare Indonesia and Malaysia
YIELD PER HECTARE INDONESIA AND MALAYSIA Sipef average CPO yield 2023 = 4,89 T/Ha 21
Slide 22: 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 > 390 000 tons (palm products) ‘segregated’ 22
Slide 23: Industrial oil palm expansion
INDUSTRIAL OIL PALM EXPANSION 23 Source: TheTreeMap
Slide 24: Biodiesel use of major feedstock
BIODIESEL USE OF MAJOR FEEDSTOCK Biodiesel use of major feedstock (Mn T) 60,00 50,00 16,35 13,58 11,41 40,00 10,16 10,36 9,46 8,34 7,19 8,26 6,52 6,87 7,62 6,3 30,00 5,93 6,69 6,35 5,50 6,94 6,84 20,35 4,57 7,21 17,99 20,00 3,67 17,62 17,36 6,30 6,96 17,07 14,61 2,71 6,20 2,55 6,23 11,47 10,76 1,82
Slide 25: Biodiesel worldwide
BIODIESEL WORLDWIDE Biodiesel worldwide 2023 Total of 57,7 Mn tonnes Biodiesel worldwide 2017 14% Total of 35,8 Mn tonnes 6% 35% 10% 4% 31% 7% 7% 19% 15% 27% 22% 25 Source: Oilworld
Slide 26: Palm oil use for biodiesel EU
PALM OIL USE FOR BIODIESEL EU 2023: Palm oil use for Biodiesel Total of 20,4 Mn tonnes EU 17% 2017 Palm oil use for Biodiesel 3,5 Mn tonnes Total of 11,6 Mn tonnes EU 36% 4,2 Mn tonnes 16,8 Mn tonnes 7,4 7,4Mn Mn tonnes Non EU tonnes 64% NON EU 83% EU Non EU EU NON EU 26 Source: Oilworld
Slide 27: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects
Slide 28: Group productions – crude palm oil
GROUP PRODUCTIONS – CRUDE PALM OIL Palm Oil Jun-24 Jun-23 Variance Own Tolan Tiga Group 28 536 27 584 3,45% Umbul Mas Wisesa Group 15 536 14 919 4,13% Agro Muko Group 36 333 36 191 0,39% South Sumatra Group 24 222 20 941 15,67% Hargy Oil Palms 39 088 49 245 -20,62% Total own 143 716 148 879 -3,47% O
Slide 29: Monthly group productions – CPO 2024
MONTHLY GROUP PRODUCTIONS – CPO 2024 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 29
Slide 30: Group productions – bananas
GROUP PRODUCTIONS – BANANAS Rubber Jun-24 Jun-23 Variance Own Tolan Tiga Group 0 116 -100,00% Agro Muko 59 399 -85,26% Total own 59 437 -86,54% Outgrowers Tolan Tiga Group 0 141 -100,00% Total Rubber 59 655 -91,02% Bananas Jun-24 Jun-23 Variance Azaguie 5 151 6 105 -15,63% Agboville 4 027 3 963 1,61
Slide 31: Bull and bear
BULL AND BEAR Rating Bullish inputs Bearish inputs Palm Oil Steady - Palm oil is competitive and reasonable - US Soybean oil is relatively weak, following good exports. good growing conditions. Aug 1000 - Stocks stable and not really growing, - Justified weakness for soybeans and meal, Sept 995 prod
Slide 32: Ex-mill gate selling prices
EX-MILL GATE SELLING PRICES EMG 30/06/2024 30/06/2023 Indo 763 738 PNG 970 1.038 Total 857 878 % sold 64% 69% 32
Slide 33: CPO prices 2023 – 2024
CPO PRICES 2023 – 2024 Crude Palm Oil in $/mt Source: Oil World 1 100 CIF Rotterdam 1 050 1 000 950 900 850 800 Jan Feb March Ap May June July Aug Sept Oct Nov Dec 2023 2024 33
Slide 34: Spread CPO – soybean oil
400 600 800 1 000 1 400 1 600 1 800 2 000 1 200 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 2016M04 2016M07 PALM_OIL 2016M10 2017M01 SPREAD CPO
Slide 35: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects
Slide 36: June 2024 - gross margin in KUSD
JUNE 2024 - GROSS MARGIN IN KUSD Gross margin palm Gross margin bananas 199.575 200.000 25.000 180.658 180.000 21.315 160.000 20.000 140.000 15.351 120.000 38% 15.000 100.000 38% 80.000 71.785 69.451 10.000 60.000 40.000 38% 36% 5.000 3.058 20.000 1.833 14% 0 12% 2024 2023 0 2024 2023 Turnover palm
Slide 37: Income statement – June 2024 (1/2)
INCOME STATEMENT – JUNE 2024 (1/2) In KUSD Act. 2024 Act. 2023 Difference Gross margin Palm 69.451 71.785 -3% Rubber -5.015 -1.940 159% Tea 85 77 10% Bananas 3.058 1.833 67% Horticulture 1 43 -97% G&A including corporate -22.851 -22.071 Other operating 852 1.542 Operating result 45.581 51.269 37
Slide 38: Income statement – June 2024 (2/2)
INCOME STATEMENT – JUNE 2024 (2/2) In KUSD Act. 2024 Act. 2023 Operating result 45.581 51.269 Finance income/charges -433 277 Exchange -3.757 658 Financial result -4.190 936 Profit before tax 41.391 52.205 Tax -12.503 -19.231 Profit after tax 28.887 32.974 Associated companies -639 -537 Profit for t
Slide 39: Balance sheet – June 2024
BALANCE SHEET – JUNE 2024 In KUSD (management presentation) 30/06/2024 31/12/2023 Biological assets (depreciated costs) - bearer plants 322 360 326 656 Goodwill 104 782 104 782 Other fixed assets 435 690 426 965 Receivables > 1 year 44 246 34 229 Assets held for sale 11 940 13 520 Net current assets
Slide 40: Cash flow – June 2024
CASH FLOW– JUNE 2024 In KUSD (management presentation) 30/06/2024 30/06/2023 Cash flow from operating activities before change in net working capital 73 290 77 457 Change in net working capital -4 692 - 74 Income taxes paid -10 124 -26 194 Cash flow from operating activities after tax 58 474 51 189
Slide 41: Value per hectare
VALUE PER HECTARE Sensitivity June 2024 Stock price @ USD per hectare 40,00 5.227 50,00 6.628 60,00 8.029 70,00 9.431 80,00 10.832 90,00 12.233 BOOKVALUE PER HECTARE = 10 384 USD/Ha 41
Slide 42: Summary
Summary SIPEF group - Company profile SIPEF group - Palm oil in the world SIPEF group - Production & prices SIPEF group – Financial performance SIPEF group - Prospects
Slide 43: Prospects – 14/08/2024
PROSPECTS – 14/08/2024 ❖Production ➢ Significant increase expected in productions in Indonesia in Q3/Q4 ➢ Total palm oil production in Indonesia expected to increase with 8% compared to last year ➢ Pruning work has finished in PNG in April → 6 months of recovery before palms start producing bunches
Slide 44: Prospects – 14/08/2024
PROSPECTS – 14/08/2024 ❖Results ➢ 64% of the projected palm oil volume sold at USD 857 per tonne EMG ❑ PNG 88% at 970 USD/tonne EMG ❑ Indonesia 49% at 763 USD/tonne EMG ➢ Sales prices continue to be impacted by local export levy/taxes in Indonesia ➢ Continued devaluation of local currencies absorbs
Slide 45: Update value creation & product differentiation
UPDATE VALUE CREATION & PRODUCT DIFFERENTATION MOSH/MOAH Virgin Oil Chloride Carbon reduction Completed (progressing) (progressing) (ongoing) • H1 food grade • Segregated oil • Washing plant • Biogas capturing • Process control stream shipped Agromuko • Biogas critical points • Barema completed conv
Slide 46: Update value creation & product differentiation
UPDATE VALUE CREATION & PRODUCT DIFFERENTATION CONTAMINANT EU REQUIREMENT HIGH END 1 HIGH END 2 MOAH (PPM) < 2.0 1.0 1.0 MOSH (PPM) < 20 20 20 3-MCPD (PPM) < 2.5 2.5/0.35* 0.7 • 3-MCPD 0.35 ppm requirement is for baby food specifications. • Total Chlorine equivalent< 2 ppm The Connection to the worl
Slide 47: The Connection to the world of Sustainable Tropical Agriculture
The Connection to the world of Sustainable Tropical Agriculture 47