Sipef Sa · EURONEXT:SIP
Sipef Sa — Investor Presentation (February 2024)
45 slides from Sipef Sa's investor presentation, Feb 15, 2024
Slide 1: Analyst presentation February 15, 2024
SIPEF Analyst presentation February 15, 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 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 22.000 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 oil demand
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 Dec-23 Dec-22 Variance Own Tolan Tiga Group 64 044 68 975 -7,15% Umbul Mas Wisesa Group 34 832 42 272 -17,60% Agro Muko Group 82 490 83 075 -0,70% South Sumatra Group 50 202 32 289 55,48% Hargy Oil Palms 90 060 102 479 -12,12% Total own 321 629 329 090 -2,
Slide 29: Monthly group productions – crude palm oil 2023
MONTHLY GROUP PRODUCTIONS – CRUDE PALM OIL 2023 CPO productions 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 29
Slide 30: Group productions – bananas
GROUP PRODUCTIONS – BANANAS Bananas Dec-23 Dec-22 Variance Azaguie 11 702 12 833 -8,81% Agboville 8 003 9 383 -14,71% Motobé 6 424 7 543 -14,83% Lumen 12 676 2 511 404,82% Akoudje 2 171 0 0,00% Total Bananas 40 976 32 270 26,98% 30
Slide 31: Bull and bear
BULL AND BEAR Rating Bullish inputs Bearish inputs Palm Oil Neutral - Palm, production will be equal to 2023. - Palm is a premium to Sun, Rape and Soyoil. Expected to plateau in 2024 - El Nino has brought a lot of rain to SO-Asia, could Feb 950 - Biofuel demand keeps growing. Particularly US be bene
Slide 32: CPO prices 2022 – 2023
CPO PRICES 2022 – 2023 Crude Palm Oil in $/mt CIF Rotterdam Source: Oil World 1 800 1 600 1 400 1 200 1 000 800 Jan Feb March Apr May June July Aug Sept Oct Nov Dec 2022 2023 32
Slide 33: CPO and soybean oil prices and spread
600 $ 400 $ 800 $ 1.000 $ 1.200 $ 1.400 $ 1.600 $ 1.800 $ 2.000 $ 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 CPO 2016M04 2016M07 2016M10 2017M0
Slide 34: 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 35: December gross margin in KUSD
DECEMBER GROSS MARGIN IN KUSD Gross margin palm Gross margin bananas 35.000 495.737 500.000 32.290 450.000 30.000 405.380 400.000 25.000 350.000 21.907 300.000 20.000 250.000 221.248 15.000 200.000 149.632 150.000 10.000 100.000 4.271 5.000 50.000 2.201 0 0 2023 2022 2023 2022 Turnover palm GM palm
Slide 36: Income statement – December 2023 (1/2)
INCOME STATEMENT – DECEMBER 2023 (1/2) In KUSD Act. 2023 Act. 2022 Difference Gross margin Palm 149 632 221 248 -32% Rubber -5 861 -4 105 43% Tea 139 195 -29% Bananas 4 271 2 201 94% Horticulture 86 93 -7% G&A including corporate -44 799 -42 027 Other operating 4 509 705 Operating result 107 978 178
Slide 37: Income statement – December 2023 (2/2)
INCOME STATEMENT – DECEMBER 2023 (2/2) In KUSD Act. 2023 Act. 2022 Operating result 107 978 178 312 Finance income/charges - 270 -2 503 Exchange 1 108 -3 251 Financial result 839 -5 754 Profit before tax 108 817 172 557 Tax -31 128 -59 536 Profit after tax 77 689 113 021 Associated companies -1 335
Slide 38: Balance sheet – December 2023
BALANCE SHEET – DECEMBER 2023 In KUSD (management presentation) 31/12/2023 31/12/2022 Biological assets (depreciated costs) - bearer plants 326 656 316 714 Goodwill 104 782 104 782 Other fixed assets 426 965 383 287 Receivables > 1 year 34 229 28 287 Assets held for sale 13 520 13 520 Net current as
Slide 39: Cashflow – December 2023
CASHFLOW– DECEMBER 2023 In KUSD (management presentation) 31/12/2023 31/12/2022 Cash flow from operating activities before change in net working capital 162 768 216 714 Change in net working capital 16 080 -6 455 Income taxes paid -56 216 -44 964 Cash flow from operating activities after tax 122 632
Slide 40: Evolution non-recurring net tax position
EVOLUTION NON-RECURRING NET TAX POSITION • The evolution of the net tax position can be split into: 2019 2020 2021 2022 2023 Indonesia 7 908 409 -10 214 -3.242 6 877 PNG 6 635 6 907 -7 770 -28.690 -9 180 Europe + IC -236 -237 108 -408 -1 378 Total 14 307 7 079 -17 877 -32 340 - 3 681 40
Slide 41: Value per hectare
VALUE PER HECTARE Sensitivity December 2023 Stock price @ USD per hectare 40,00 5.224 50,00 6.625 60,00 8.025 70,00 9.426 80,00 10.826 90,00 12.226 BOOKVALUE PER HECTARE = 10 039 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 – 15/02/2024
PROSPECTS – 15/02/2024 ❖Production ➢ Stable and promising production year ➢ 300.000 tons CPO production in Indonesia expected in 2024 ➢ Impact of the volcanic eruption estimated to result in a decrease of up to 20% of the production volumes but productions still exceeding the 120.000 tons ➢ Total CP
Slide 44: Prospects – 15/02/2024
PROSPECTS – 15/02/2024 ❖Results ➢ 19% of the projected palm oil volume sold at USD 867 per tonne EMG ❑ PNG 33% at 955USD/tonne EMG ❑ Indonesia 12% at 728 USD/tonne EMG ➢ Sales prices continue to be impacted by local export levy/taxes in Indonesia ➢ Unit production cost of palm remain well under cont
Slide 45: The Connection to the World of Sustainable Tropical Agriculture
The Connection to the world of Sustainable Tropical Agriculture 45