Slide 1: Analyst presentation
SIPEF Analyst presentation August 18, 2022 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 The Connection to the world of Sustainable Tropical Agriculture • 1st segment of the supply chain – commodities in continuous crops: Agriculture o Palm oil (96% Ha) o Bananas (1% Ha) • Indonesia (82% Ha) Tropical • Papua New Guinee (17% Ha) • Ivory Coast (1% Ha) Sustain
Slide 4: Company profile: Worldwide
SIPEF group – Company profile Worldwide The Connection to the world of Sustainable Tropical Agriculture 4
Slide 5: Company profile: Indonesia
SIPEF group – Company profile Indonesia 5
Slide 6: Company profile: Papua New Guinea
SIPEF group – Company profile Papua New Guinea The Connection to the world of Sustainable Tropical Agriculture 6
Slide 7: Planted hectares summary 100% – December 2021
SIPEF group – Company profile Planted hectares summary 100% – 31 December 2021 Hectares Group 2021 Indonesia PNG Ivory Coast % of total % of total 100% share Palm 63.429 13.262 0 76.691 97% 71.328 96% Rubber 1.954 0 0 1.954 2% 1.763 2% Tea 0 0 0 0 0% 0 0% Bananas 0 0 794 794 1% 794 1% Other 0 0 31 3
Slide 8: 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 88 939 Ha 88 941 Ha 90.000 82 968 Ha 84 634 Ha 78 213 Ha 80.000 69 439 Ha 70.000 60.000 56 811 Ha 50.000 48 093 Ha 40.000 30.000 20.000 10.000 0 2005 2008 2016 2017 2019 2020
Slide 9: Total supply bases – mature palm
SIPEF group – Company profile Total supply bases – mature palm Total supply base area - palm 120.000 3.581 3.581 3.581 3.581 3.581 3.581 3.581 3.181 2.393 100.000 1.443 14.581 14.565 14.553 14.539 500 14.603 14.585 14.539 14.620 14.648 14.667 14.676 13.551 13.521 13.494 13.468 13.446 13.427 13.394 1
Slide 10: CPO production LTBP 2021 - 2031
SIPEF group – Company profile CPO production LTBP 2021 - 2031 CPO production - own + outgrowers 600.000 500.000 South Sum - expansion own South Sum - original outgrowers 400.000 South Sum - original own HOPL outgrowers HOPL own 300.000 UMW Group outgrowers UMW Group own AM Group outgrowers 200.000 A
Slide 11: 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 11
Slide 12: 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 13: Oil and fat consumption
SIPEF group – Palm oil in the world Oil and fat consumption Source: Oilworld Oil and fat per capita consumtion (in Kg) 80 74,33 = 3 billion people 71,82 70 64,03 59,43 60 55,77 55,08 50 39,05 40 35,54 28,88 30,70 30 25,52 25,86 22,85 21,46 20 17,19 15,57 14,73 14,04 10 0 EU-28 USA China India Indone
Slide 14: Land input and rising demand
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 15: 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 15
Slide 16: Vegetable oils
SIPEF group – Palm oil in the world Palm oil in the world - Vegetable oils 2021 : 241,4 million tonnes Source: Oilworld 1994/95: 93,1 million tonnes Others 20% Palm oil 16% Palm oil 31% Palm kernel Other oils/animal and coconut oil fats 5% 37% Soybean oil 21% Sunflower oil 8% Palm kernel and Rapesee
Slide 17: Palm oil production
SIPEF group – Palm oil in the world Palm oil in the world - Palm oil production 2021 Palm oil production Middle & South America 5% Total of 75,9 Mn tonnes Source: Oilworld Other countries 5% Africa 3% Thailand 4% Indonesia Malaysia Thailand Africa Middle & South America Malaysia Indonesia Other coun
Slide 18: 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 19: 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 19
Slide 20: 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 20
Slide 21: The oil palm controversy
SIPEF group – Palm oil in the world The oil palm controversy 21
Slide 22: Sustainable palm oil
SIPEF group – Palm oil in the world Palm oil in the world - Sustainable palm oil 3,35 Million Ha RSPO certified production area in 2021 The Connection to the world of Sustainable Tropical Agriculture 22
Slide 23: Biodiesel use of major feedstock (Mn T)
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 11,41 40,00 10,16 10,36 9,46 35,00 6,87 8,26 6,52 7,62 6,3 30,00 5,93 6,69 6,35 25,00 5,50 6,94 6,84 4,57 7,21 3,67 17,36 20,00 6,96 17,62 17,07 6,3
Slide 24: Biodiesel worldwide
SIPEF group – Palm oil in the world Biodiesel worldwide Source: Oilworld Biodiesel worldwide 2021 Biodiesel worldwide 2017 Used cooking oil 12% Total of 47,9 Mn tonnes Total of 35,8 Mn tonnes 10% Other oils & fats 4% 5% 31% Coconut oil Palm Oil 7% 0% 36% Tallow 7% 1% Sunflower Oil 0% 19% Rapeseed Oi
Slide 25: Palm oil use for biodiesel EU
SIPEF group – Palm oil in the world Palm oil use for biodiesel EU Source: Oilworld 2021: Palm oil use for Biodiesel 2017 Palm oil use for Biodiesel Total of 17,4 Mn tonnes Total of 11,6 Mn tonnes EU 26% EU 4,6 Mn tonnes 36% 4,2 Mn tonnes 7,4 7,4Mn Mntonnes tonnes 12,8 Mn tonnes Non EU 64% NON EU 74%
Slide 26: Expansion: Growth in Indonesia and Malaysia
SIPEF group – Expansion Growth in Indonesia and Malaysia Sipef CAGR since 1997 = 4,67% 26
Slide 27: Expansion: Sipef average CPO yield
SIPEF group – Expansion Growth in Indonesia and Malaysia Sipef average CPO yield 2021 = 5,1 T/Ha 27
Slide 28: 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 28
Slide 29: Group production palm oil – June 2022
SIPEF group – Productions & prices Group production PALM OIL – June 2022 Palm Oil 2022 2021 Variance Own Tolan Tiga Group 32 914 32 910 0,01% Umbul Mas Wisesa Group 21 024 21 489 -2,17% Agro Muko Group 39 933 46 224 -13,61% South Sumatra Group 11 788 10 173 15,88% Hargy Oil Palms 50 505 46 737 8,06%
Slide 30: Group production palm oil – monthly overview
SIPEF group – Productions & prices Group production PALM OIL – Monthly overview CPO productions 2022 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 30
Slide 31: Group production bananas – June 2022
SIPEF group – Productions & prices Group production BANANAS – June 2022 Bananas June 2022 June 2021 Variance Azaguié 6 336 6 635 -4,51% Agboville 4 543 4 955 -8,31% Motobé 4 862 5 064 -3,99% Lumen 35 0 - Akoudje 0 0 - Total Bananas 15 776 16 654 -5,27% 31
Slide 32: Bull & Bear
SIPEF group – Production & prices Bull & Bear Rating Bullish inputs Bearish inputs Palm Oil Neutral - The export tax is reduced from $288 to $52/$74 - Total export taxes/levies from $688 to $52/$74 to - The export levy is temporarily abandoned till end of support local prices….usually export prices
Slide 33: Current export tax/levy scheme
SIPEF group – Production & prices Current export tax/levy scheme 33
Slide 34: EMG selling prices
SIPEF group – Production & prices EMG selling prices Realised sales 30/06/2022 30/06/2021 Indo 1.039 604 PNG 1.257 829 Total 1.148 696 % sold 40% 48% Contracted forward sales Mid August 2022 Mid August 2021 Indo 919 632 PNG 1.251 862 Total 1.097 728 % sold 65% 75% 34
Slide 35: CPO prices CIF Rotterdam 2021 – 2022
SIPEF group – Production & prices CPO prices CIF Rotterdam 2021 – 2022 Crude Palm Oil in $/mt Source: Oil World CIF Rotterdam $1.900 $1.800 $1.700 $1.600 $1.500 $1.400 $1.300 $1.200 $1.100 $1.000 $900 J F M A M J J A S O N D 35 2021 2022
Slide 36: Spread crude palm oil – soybean oil
$400 $600 $800 $1.000 $1.200 $1.400 $1.600 $1.800 $2.000 2010M01 2010M03 2010M05 2010M07 2010M09 2010M11 2011M01 2011M03 2011M05 2011M07 2011M09 2011M11 2012M01 2012M03 2012M05 2012M07 2012M09 2012M11 2013M01 2013M03 2013M05 2013M07 2013M09 2013M11 2014M01 2014M03 SIPEF group – Production & prices 2
Slide 37: 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 37
Slide 38: June gross margin – Results before tax
SIPEF group – Financial statements June gross margin – Results before tax (management presentation) 290 000 240 000 233 336 190 000 162 200 140 000 55,3% 90 000 40,9% 40 000 12 858 11 140 18,5% 8,7% 4 995 2 306 -17,8% -84,2% -10 000 Palm Bananas & horti Rubber 2021 Sales 2021 Gross Margin 2022 Sales
Slide 39: Gross margin – Results after tax
SIPEF group - Financial statements Gross margin – Results after tax (management presentation) In KUSD 30/06/2022 30/06/2021 Diff Gross margin Palm 129.066 66.383 94% Rubber -1.941 -887 119% Tea 100 65 54% Bananas 853 2.381 -64% Horticulture 111 30 270% G&A including corporate -23.191 -16.462 Other o
Slide 40: Gross margin – Results after tax (continued)
SIPEF group - Financial statements Gross margin – Results after tax (management presentation) - Continued In KUSD 30/06/2022 30/06/2021 Profit before tax 100.596 48.258 Tax -33.248 -13.159 Profit after tax 67.348 35.099 Associated companies -156 -482 Profit for the period - recurring 67.192 34.617 G
Slide 41: Consolidated balance sheet
SIPEF group - Financial statements Consolidated balance sheet (management presentation) In KUSD (management presentation) 30/06/2022 31/12/2021 Biological assets (depreciated costs) - bearer plants 306 648 307 371 Goodwill 104 782 104 782 Other fixed assets 374 612 363 934 Receivables > 1 year 25 96
Slide 42: Inventory overview
SIPEF group - Financial statements Inventory overview CPO inventory overview 60.000 56.270 50.000 40.000 Tons of CPO 30.000 2021 2022 26.026 20.000 10.000 0 1 2 3 4 The 5 Connection to 6the world of Sustainable 7 Tropical Agriculture 8 9 10 11 12 42
Slide 43: Evolution non-recurring net tax position
SIPEF group – Financial statements June 2022 Evolution non-recurring net tax position • The evolution of the net tax receivable can be split into: 31/12/2019 31/12/2020 30/06/2021 31/12/2021 30/06/2022 Indonesia 7 908 409 -995 -10 214 -5 152 PNG 6 635 6 907 3 033 -7 770 -26 475 Europe + IC - 236 -23
Slide 44: Cash flow (management presentation)
SIPEF group – Financial statements June 2022 Cash flow (management presentation) In KUSD (management presentation) 30/06/2022 30/06/2021 Cash flow from operating activities before change in net working capital 125 211 72 576 Change in net working capital* -29 452 -26 744 Income taxes paid -18 277 -4
Slide 45: Value per hectare
SIPEF group – Financial statements June 2022 Value per hectare Sensitivity 30/06/2022 Stock price @ USD per hectare 30,00 3.994 40,00 5.426 50,00 6.858 60,00 8.290 70,00 9.721 80,00 11.153 45
Slide 46: 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 46
Slide 47: Prospects – Production and Markets
SIPEF group – Prospects Prospects – 18/08/2022 Production Palm oil productions in Indonesia at the beginning of the year below expectations but stabilized in Q2. In PNG, the expectations for the productions remain very good. Production of palm oil for 2022 expected to exceed 400 000 tonnes f
Slide 48: Prospects – Cash flow, expansion and result
SIPEF group – Prospects Prospects – 18/08/2022 Cash flow and expansion Investment policy remains to be fully focused on development of palm oil activities in South Sumatra. Expansion of the processing capacity in Dendymarker mill from 20 to 60 tonnes per hour, was completed early June 2022.
Slide 49: The Connection to the world of Sustainable Tropical Agriculture
The Connection to the world of Sustainable Tropical Agriculture 49