Sipef Sa · EURONEXT:SIP
Sipef Sa — Consumer Goods Seminar, Degroof Petercam, Brussels (June 2019)
62 slides from Sipef Sa's conference presentation, Jun 20, 2019
Slide 1: Consumer Goods Seminar - Degroof Petercam
SIPEF Consumer Goods Seminar Degroof Petercam - Brussels June 20, 2019 The Connection to the world of Sustainable Tropical Agriculture 1
Slide 2: Summary
Summary 1. SIPEF Group Company profile 2. SIPEF Group Palm oil in the world 3. SIPEF Group - Expansion 4. SIPEF Group – Productions & prices 5. SIPEF Group – Financial performance 6. Peer review 2 The Connection to the world of Sustainable Tropical Agriculture
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: Company profile - continuous production, diversified
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 December 2018
SIPEF group - Company profile Planted hectares summary 100% – 31 December 2018 Palm Rubber Tea Bananas Other Total % Group share Indonesia 58 035 6 275 1 763 66 073 82% 59 572 PNG 13 687 13 687 17% 13 687 Ivory coast 749 31 780 1% 780 Total 71 722 6 275 1 763 749 31 80 540 100% 74 039 % 89% 8% 2% 1%
Slide 9: Summary
Summary 1. SIPEF Group Company profile 2. SIPEF Group Palm oil in the world 3. SIPEF Group - Expansion 4. SIPEF Group – Productions & prices 5. SIPEF Group – Financial performance 6. Peer review 9 The Connection to the world of Sustainable Tropical Agriculture
Slide 10: Palm oil in the world - Population growth
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 11: Oil and fat consumption
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 12: Palm oil in the world - Land input
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 13: Comparison to other oils
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 13
Slide 14: Vegetable oils
SIPEF group - Palm oil in the world Palm oil in the world - Vegetable oils Source: Oilworld 2018: 231 million tonnes 1994/95: 93,1 million tonnes Other oils/animal fats 20% Palm oil 16% Palm oil 32% Other oils/animal Palmkernel oil + fats coconut oil 37% 5% Soya oil 21% Sunflower oil 8% Rapeseed oil
Slide 15: Palm oil production
SIPEF group - Palm oil in the world Palm oil in the world - Palm oil production Source: Oilworld 2018 Palm oil production Total of 72,61 Mn tonnes Other countries Africa 3% 2% Middle & South America 6% Thailand 4% Indonesia Malaysia 57% 27% Indonesia Malaysia Thailand Middle & south america Africa O
Slide 16: Palm oil consumption
SIPEF group - Palm oil in the world Palm oil in the world - Palm oil consumption 2014/15 World palm oil consumption per region 14% 0% 11% 2% 2% 6% 65% Europe Russia North America South America Asia and the middle east Africa Oceania The Connection to the world of Sustainable Tropical Agriculture 16
Slide 17: Palm oil in the world - 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 18: 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 18
Slide 19: 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 19
Slide 20: Sustainable palm oil
SIPEF group - Palm oil in the world Palm oil in the world - Sustainable palm oil 2,81 Million Ha RSPO certified production area The Connection to the world of Sustainable Tropical Agriculture 20
Slide 21: Number of certified production and/or operational units
SIPEF group - Palm oil in the world Number of certified production and/or operational units The Connection to the world of Sustainable Tropical Agriculture 21
Slide 22: Biodiesel in Europe
SIPEF group - Palm oil in the world Palm oil in the world - Biodiesel in Europe • Approval of the Delegated Act by the EU-commission • Renewable energy from 20% in 2020 to 32% by 2030 • Renewable energy in transport from 10% in 2020 to 14% in 2030 • Conventional biofuels will be optional and limited
Slide 23: Biodiesel worldwide
SIPEF group - Palm oil in the world Biodiesel worldwide Source: Oilworld Biodiesel worldwide 2018 Biodiesel worldwide 2017 Total of 40,7 Mn tonnes Total of 35,8 Mn tonnes 10% 10% 4% 4% 31% 35% 7% 7% 1% 1% 17% 19% 27% 26% Palm oil Soya Rapeseed oil Sunflower oil Palm oil Soya Rapeseed oil Sunflower o
Slide 24: Palm oil use for biodiesel EU
SIPEF group - Palm oil in the world Palm oil use for biodiesel EU Source: Oilworld 2018 Palm oil use for Biodiesel 2017 Palm oil use for Biodiesel Total of 14,2 Mn tonnes Total of 11,0 Mn tonnes EU 27% EU 35% 3,8 Mn tonnes 3,8 Mn tonnes 7,2 Mn tonnes 10,4 Mn tonnes Non EU 65% NON EU 73% EU NON EU EU
Slide 25: Summary
Summary 1. SIPEF Group Company profile 2. SIPEF Group Palm oil in the world 3. SIPEF Group - Expansion 4. SIPEF Group – Productions & prices 5. SIPEF Group – Financial performance 6. Peer review 25 The Connection to the world of Sustainable Tropical Agriculture
Slide 26: Strategy & expansion
SIPEF group - Expansion Strategy & expansion SIPEF group= 100.000 Ha planted (group’ share) Focus on core-business • Palmoil – Rubber – Bananas – Tea • Indonesia – Papua New Guinea Focus on ‘Sustainable Agriculture’ (RSPO) Expansion of existing activities Acquisition of new investments Balanced leve
Slide 27: Planted area (in hectares) - 100%
SIPEF group - Expansion Planted area (in hectares) – 100% 100.000 94 265Ha 94 470Ha 90.000 80 540Ha 80.000 78 213 Ha 69 439 Ha 70.000 60.000 56 811Ha 50.000 48 093Ha 40.000 30.000 20.000 10.000 0 2005 2008 2016 2017 2018 2023 2028 North Sum North Sum expansion Bengkulu Bengkulu expansion PNG PNG exp
Slide 28: Supply base: own and outgrowers hectares
SIPEF group - Expansion Supply base (in hectares): own ha and outgrowers ha – 100% 140 000 120 000 21 786 21 786 21 786 21 786 21 786 21 786 21 786 21 652 21 286 20 538 100 000 19 656 80 000 60 000 94 441 94 462 94 470 94 265 94 331 94 329 94 099 93 296 91 203 87 408 80 540 40 000 20 000 0 2018 2019
Slide 29: Planted hectares and CPO production
SIPEF group - Expansion Planted hectares and production of CPO (sale of FFB not included) (BI) 180% + 74% 170% 160% 150% 140% BI hectares BI production 130% + 23% 120% 110% 100% The Connection to the world of Sustainable Tropical Agriculture 29
Slide 30: 100% CPO production
SIPEF group - Expansion 100% CPO production (including plasma and outgrowers – NO FFB) 700.000 2028 600.000 Own: 480 Kton Outg: 119 Kton 500.000 Total: 599 Kton 400.000 Outgrowers Own 300.000 200.000 100.000 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 The Connection to the world of
Slide 31: Musi Rawas expansion
SIPEF group - Expansion Musi Rawas expansion The Connection to the world of Sustainable Tropical Agriculture
Slide 32: Musi Rawas project status summary
SIPEF group - Expansion Musi Rawas – South Sumatra summary of project status Latest update Musi Rawas Musi Rawas II Dendymarker DIL Newplant Total Izin Lokasi HGU 24.607 0 17.793 0 42.400 Expansion Izin Lokasi 0 8.594 8.594 TOTAL HGU/IZIN 24.607 8.594 17.793 0 50.994 Planted /Cleared 11.111 0 8.986
Slide 33: Musi Rawas - progress April 2019
SIPEF group - Expansion Musi Rawas – progress April 2019 MUSI RAWAS Acquired Ha Secured Ha PT AKL 4.746 4.328 91% PT ARU 3.395 2.325 68% PT AMR 7.658 4.458 58% Total OLD 15.799 11.111 70% Potential Ha 18.507 85% AMR III 33 0 0% AMRS 121 0 0% AKLE 92 0 0% Total NEW 246 0 0% Potential Ha 4.297 6% GRAN
Slide 34: Musi Rawas - progress April 2019
SIPEF group - Expansion Musi Rawas – progress April 2019 Compensation Ha Cleared/Planted Ha Planted Cleared Planted/ Area YTD 2018 Apr/19 TOTAL YTD 2018 Apr/19 Apr/19 TOTAL compensated AKL 4.077 92 4.169 3.646 54 78 3.778 90,6% ARU 2.861 23 2.884 1.816 105 38 1.959 67,9% AMR 6.226 195 6.421 3.640 23
Slide 35: Summary
Summary 1. SIPEF Group Company profile 2. SIPEF Group Palm oil in the world 3. SIPEF Group - Expansion 4. SIPEF Group – Productions & prices 5. SIPEF Group – Financial performance 6. Peer review 35 The Connection to the world of Sustainable Tropical Agriculture
Slide 36: Production Palm Oil April 2019
SIPEF group – Productions & prices Production Palm Oil April 2019 Palm Oil April 2019 April 2018 Variance Own Tolan Tiga Group 20 332 22 247 -8,61% Umbul Mas Wisesa Group 12 245 13 237 -7,49% Agro Muko Group 23 421 26 716 -12,33% South Sumatra Group 3 522 1 251 181,53% Hargy Oil Palms 23 581 27 009
Slide 37: Production Rubber April 2019
SIPEF group – Productions & prices Production Rubber April 2019 Rubber April 2019 April 2018 Variance Own Tolan Tiga Group 547 741 -26,18% Melania 1 245 1 336 -6,78% Agro Muko 760 921 -17,50% Total Rubber 2 551 2 998 -14,89% The Connection to the world of Sustainable Tropical Agriculture 37
Slide 38: Production Tea & Bananas April 2019
SIPEF group – Productions & prices Production Tea & Bananas April 2019 Tea April 2019 April 2018 Variance Melania 925 821 12,64% Total Tea 925 821 12,64% Bananas April 2019 April 2018 Variance Azaguie 1 1 864 1 681 10,89% Azaguie 2 3 499 3 279 6,71% Agboville 2 986 2 894 3,18% Motobe 3 413 2 204 54,
Slide 39: Bull & Bear
SIPEF group – Productions & prices Bull & Bear Rating Bullish inputs Bearish inputs Palm Oil Neutral PALM SUPPLY & DEMAND •Palm oil exports and local (bio) demand has been good despite high STOCK SITUATION IN ASIA •Following great production in 2018 we still have high stocks in Malaysia, Indo is fin
Slide 40: CPO prices CIF Rotterdam 2018-2019
SIPEF group – Productions & prices CPO prices CIF Rotterdam 2018-2019 Crude Palm Oil in $/mt Source: Oilworld CIF Rotterdam 750 700 650 600 ∆ 145 USD/ton 550 500 450 J F M A M J J A S O N D 2018 2019 The Connection to the world of Sustainable Tropical Agriculture 40
Slide 41: Spread crude palm oil - soybean oil
1000 1200 1400 1600 400 600 800 2010M01 2010M03 2010M05 2010M07 2010M09 2010M11 2011M01 2011M03 2011M05 2011M07 2011M09 2011M11 2012M01 2012M03 2012M05 2012M07 Spread crude palm oil – soybean oil 2012M09 2012M11 2013M01 2013M03 SIPEF group – Productions & prices 2013M05 2013M07 2013M09 2013M11 2014M
Slide 42: Rubber prices 2018-2019
SIPEF group – Productions & prices Rubber prices CIF Rotterdam 2018-2019 RSS3 in $/mt Source: Worldbank FOB Singapore 1 800 1 700 1 600 1 500 1 400 1 300 J F M A M J J A S O N D 2018 2019 The Connection to the world of Sustainable Tropical Agriculture 42
Slide 43: Tea prices 2018-2019
SIPEF group – Productions & prices Tea prices CIF Rotterdam 2018-2019 Tea in $/mt Source: Worldbank Average auction Mombasa Source: Worldbank 3 200 3 000 2 800 2 600 2 400 2 200 2 000 J F M A M J J A S O N D 2018 2019 The Connection to the world of Sustainable Tropical Agriculture 43
Slide 44: Summary
Summary 1. SIPEF Group Company profile 2. SIPEF Group Palm oil in the world 3. SIPEF Group - Expansion 4. SIPEF Group – Productions & prices 5. SIPEF Group – Financial performance 6. Peer review 44 The Connection to the world of Sustainable Tropical Agriculture
Slide 45: Consolidated balance sheet
SIPEF group – Financial performance Consolidated balance sheet (management presentation) In KUSD (condensed) DEC 2018 DEC 2017 Biological assets (depreciated costs) - bearer plants 283 712 268 086 Goodwill 104 782 103 008 Other fixed assets 375 593 361 408 Net assets held for sale 0 12 010 Net curre
Slide 46: Gross margin - Results before tax
SIPEF group – Financial performance Gross margin – Results before tax (management presentation) In KUSD (condensed) DEC 2018 DEC 2017 %change Gross margin per product Palm 62 731 108 941 -42% Rubber -1 277 2 879 -144% Tea 584 1 043 -44% Bananas and flowers 2 669 3.653 -27% Total gross margin 64 707
Slide 47: Net profit after tax
SIPEF group – Financial performance Net profit after tax (management presentation) In KUSD (condensed) DEC 2018 DEC 2017 Result before tax 35 860 88 551 Tax expense -13 147 -23 865 Effective tax rate -36,7% -27,0% Insurances 0 1 723 Recurring result after tax 22 713 66 409 Correction PT AM @ 44,9273
Slide 48: Value per hectare
SIPEF group – Financial performance Value per hectare Sensitivity 31/12/2018 Stock price @ USD per hectare 43,00 7 493 50,00 8 721 55,00 9 510 60,00 10 298 65,00 11 086 70,00 11 874 75,00 12 663 48
Slide 49: Dividend history
SIPEF group – Financial performance Dividend history Dividend History Sipef 1,80 35% 32% 32% 30% 31% 31% 1,60 30% 30% 30% 1,40 25% 25% 25% 24% 25% 23% 1,20 22% 21% 20% 1,00 17% 1,70 1,70 0,80 1,60 15% 1,50 0,60 1,25 1,25 1,25 1,10 10% 0,40 0,80 0,80 0,60 0,55 5% 0,20 0,40 0,30 0,30 0,00 0% 2004 2005
Slide 50: Summary
Summary 1. SIPEF Group Company profile 2. Palm oil in the world 3. SIPEF group - Expansion 4. SIPEF Group – Productions & prices 5. SIPEF group – Financial performance 6. Peer review 50 The Connection to the world of Sustainable Tropical Agriculture
Slide 51: Peer review disclaimer
Peer review Disclaimer The information contained in this section is provided for your general information only and is not designed nor intended to offer anything more than information only. The information with respect to the companies included in the Peer Review was retrieved from publicly availabl
Slide 52: Peer review - Principle assumptions
Peer review Principle assumptions • Benchmark of main industrial competitors • Age profile based on own ageing interpretation • Market capitalization is calculated based on the average exchange rate & average share price of the year • Benchmark based on own CPO productions of competitors: Tons CPO o
Slide 53: Own planted oil palm hectares (2017)
Peer review Own planted Oil Palm Hectares in KHa (2017) Sime Darby 603 Golden Agri-Resources 400 Felda Global Ventures 342 Salim Ivomas Pratama 248 Wilmar International 240 Astra Agro Lestari 225 Kuala Lumpur Kepong 211 First Resources 180 IOI Corporation 174 Genting Plantations Plantation 144 Integ
Slide 54: Age profile: average age planted hectares
Peer review Age Profile: Average age planted hectares (2017) Golden Agri-Resources 16,0 Astra Agro Lestari 15,2 Salim Ivomas Pratama 15,0 London Sumatra Indon 15,0 Felda Global Ventures 14,5 IOI Corporation 14,5 Socfinasia 14,1 Sime Darby 13,2 Kuala Lumpur Kepong 12,4 Plantation R.E.A. Holdings 11,1
Slide 55: FFB Yield - MT/ha (2017)
Peer review FFB Yield – MT/ha (2017) Socfinasia 24,1 SIPEF* 23,9 IOI Corporation 21,7 Kuala Lumpur Kepong 21,4 Golden Agri-Resources 20,5 MP Evans 19,9 Sime Darby 19,4 Astra Agro Lestari 19,1 Wilmar International 19,0 Plantation Genting Plantations 18,4 Integrated First Resources 18,2 Sipef Anglo Ea
Slide 56: Extraction rate from FFB to CPO (2017)
Peer review Extraction rate from FFB to CPO (2017) MP Evans 23,6% Eagle High Plantations 23,4% SIPEF* 23,4% Socfinasia 22,9% London Sumatra Indon 22,9% R.E.A. Holdings 22,8% Bumitama 22,7% First Resources 22,2% Golden Agri-Resources 22,2% Socfinaf 22,0% Plantation Salim Ivomas Pratama 21,9% Integrat
Slide 57: CPO Yield - MT/ha (2017)
Peer review CPO Yield – MT/ha (2017) SIPEF* 5,58 Socfinasia 5,53 MP Evans 4,70 Kuala Lumpur Kepong 4,64 IOI Corporation 4,61 Golden Agri-Resources 4,55 Sime Darby 4,14 First Resources 4,04 Genting Plantations 3,94 Plantation Astra Agro Lestari 3,94 Integrated Wilmar International 3,88 Sipef Bumitama
Slide 58: Market Cap in MUSD (2017)
Peer review Market Cap in MUSD (2017) Wilmar International 13 630 Sime Darby 13 501 IOI Corporation 6 588 Kuala Lumpur Kepong 5 985 Golden Agri-Resources 3 022 Astra Agro Lestari 1 939 First Resources 1 890 Genting Plantations 1 805 Felda Global Ventures 1 339 Plantation Bumitama 826 Integrated SIPE
Slide 59: Dividend Yields
Peer review Dividend Yields (based on average market cap 2017) Socfinasia 5,0% MP Evans 3,7% First Resources 3,7% Astra Agro Lestari 3,5% London Sumatra Indon 3,1% Wilmar International 2,9% Felda Global Ventures 2,8% Sime Darby 2,7% Bumitama 2,6% SIPEF 2,5% Plantation Genting Plantations 2,4% Integr
Slide 60: Price Earning Ratio
Peer review Price Earning Ratio (based on average market cap 2017) Felda Global Ventures 45,4 Golden Agri-Resources 40,8 IOI Corporation 38,1 Genting Plantations 26,0 Kuala Lumpur Kepong 25,9 Sime Darby 23,8 MP Evans 19,3 Salim Ivomas Pratama 16,3 Socfinasia 15,8 Plantation First Resources 13,7 Inte
Slide 61: Net financial position/Equity Ratio (2017)
Peer review Net financial position/Equity Ratio (2017) Eagle High Plantations 134% IOI Corporation 86% Socfinaf 79% R.E.A. Holdings 77% Wilmar International 76% Golden Agri-Resources 69% Sampoerna Agro 63% Bumitama 53% Felda Global Ventures 48% Genting Plantations 43% Plantation Salim Ivomas Pratama
Slide 62: The Connection to the world of Sustainable Tropical Agriculture
The Connection to the world of Sustainable Tropical Agriculture 62
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