![Page 1: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/1.jpg)
IOI CORPORATION BERHAD
CGS-CIMB 13th Annual Malaysia
Virtual Corporate Day
![Page 2: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/2.jpg)
ConclusionVision, Mission & Core Values
2
“ Our Vision is to be a leading and sustainable Malaysian business
corporation with global presence. ”
“ Our Mission is to achieve responsible and sustainable commercial
success by addressing the interests of all our stakeholders, caring for the
community and the environment, and adopting best practices to be globally
competitive. ”
![Page 3: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/3.jpg)
Global Presence
3
![Page 4: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/4.jpg)
Group Overview
4
❖LEADING INTEGRATED AND SUSTAINABLE
PALM OIL GROUP WITH GLOBAL PRESENCE.
![Page 5: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/5.jpg)
Group Financial SnapshotIntegrated Value Chain
5
![Page 6: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/6.jpg)
0
200
400
600
800
1,000
1,200
1,400
FYE 2018 FYE 2019 FYE 2020
1,010
484702
384
553385
GROUP'S PROFIT BEFORE INTEREST & TAXATION (RM MILLION) (BY SEGMENT)
Plantation Resource-based manufacturing
Group Financial SnapshotGroup Financial Snapshot
6
1,394
1,037 1,087
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
FYE 2018 FYE 2019 FYE 2020
7,418 7,386 7,802
GROUP REVENUE (RM MILLION)
![Page 7: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/7.jpg)
Plantation
• 177,000 ha of oil palm plus 1,100 ha of rubber and coconut
planted areas across 96 estates.
• 15 palm oil mills with total 4.6 million MT annual milling
capacity.
• Holds 32% interest in an associate company, Bumitama Agri
Ltd, which has a planted nucleus area of 133,000 ha as at 30
June 2020 (effective interest is approx. 43,000 ha).
• 100% of Malaysian plantations are both RSPO and MSPO-
certified.
Plantation
7
OVERVIEW
![Page 8: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/8.jpg)
Plantation
LOCATION OF PLANTATION OPERATIONS
East Malaysia (113,162 ha)
Peninsular Malaysia (43,023 ha)
8
Plantation
Kalimantan, Indonesia
(20,724 ha)
![Page 9: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/9.jpg)
9
Plantation – Oil Palm Age Profile
Weighted
average
planting age:
13.4 years
![Page 10: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/10.jpg)
Plantation - Key Operational HighlightsPlantation - Key Operational HighlightsPlantation - Key Operational Highlights
10
3,515,000 3,399,000
3,097,000
23.6
23.0
21.2
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
FYE 2018 FYE 2019 FYE 2020
FFB Production (MT)/ Yield (MT/HA)
20.90% 21.44% 21.83%
4.85% 4.72% 4.67%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
FYE 2018 FYE 2019 FYE 2020
OER (%)
![Page 11: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/11.jpg)
Plantation Plantation
11
Progress and highlights
• Over 10,000 ha of aging trees were replanted during FY2020
with higher yielding planting materials.
• Completed new planting of about 2,400 ha of oil palm on last
concession area in Kalimantan, Indonesia during FY2020.
• Completed implementation of SAP ERP system and mobile
crop monitoring system in all Malaysian plantations in
December 2020.
• Implementing mechanisation of FFB Main Line Evacuation
in all Malaysian estates which is expected to complete by year
2023.
![Page 12: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/12.jpg)
Resource Based Manufacturing
• The resource-based manufacturing division
consists of:
- Midstream:
Refining and Fractionation
- Downstream:
Oleochemical
Specialty oils and fats (associate)
OVERVIEW
Resource Based Manufacturing
12
Resource Based Manufacturing
![Page 13: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/13.jpg)
6 manufacturing facilities:
❖ Two refineries located at Johor and Sabah, Malaysia;
❖ Two oleochemical plant complex located at Penang and
Johor, Malaysia, including a fatty ester plant in Penang;
and
❖ Two specialty ester plants in Germany.
Resource Based Manufacturing
Refinery and Oleochemical
13
Resource Based Manufacturing
Oleochemical applications
Cosmetics
& Toiletries
Plastic &
additives
Soap &
Detergents
Rubber
& TiresLubricants
& GreasesPharmaceuticals Paint & Ink
![Page 14: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/14.jpg)
Manufacturing facilities owned by Bunge Loders Croklaan,
a 30% owned associate company:
❖ Six specialty oils and fats plants located at Malaysia,
Netherlands, USA, Canada, Ghana and China.
Resource Based Manufacturing
Specialty Oils & Fats
14
Resource Based Manufacturing
Specialty oils & fats applications
CulinaryBakerySpreads Animal NutritionConfectionary FryingInfant nutrition
![Page 15: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/15.jpg)
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2018 2019 2020
714,024 714,131 669,854
1,789,617
1,917,195 1,973,792
Sales Volume in MT
Oleochemical Refinery
Resource Based Manufacturing
Key Operational Highlights
Resource Based Manufacturing
15
Resource Based Manufacturing
MT
![Page 16: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/16.jpg)
Resource Based Manufacturing
Progress and highlights
Resource Based Manufacturing
16
Resource Based Manufacturing
• CPO is 100% traceable to mill and 68% to plantation.
• PKO is 100% traceable to mill and 65% to plantation.Refinery
• New 110,000 MT/year capacity oleochemical plant in Prai, Penang is estimated to complete by end of 2021.
• Owner of 14 Patents for pharmaceutical application via IOI Oleo GmbH, Germany.
Oleochemical
• Ghana plant for shea butter fractionation commissioned.
• Expanding product offering in the nutrition category, from infant nutrition to sports and elderly nutrition.
Specialty oils & fats (associate)
![Page 17: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/17.jpg)
Plantation
17
IOI Five-Year Plan (2020-2024)
Objective:-
• Progress from a cost competitive palm
oil producer to a high value-added
diversified palm-based products producer.
• Increase resilience and competitiveness
for the future.
• Driven by five strategic priorities from
years 2020 to 2024.
![Page 18: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/18.jpg)
➢ Target: Increase plantation oil yields across
various age groups by at least 15%.
✓ Utilise clonal palms in 50% of our
replanting materials.
✓ Employ best agricultural practices, improve
field conditions and optimise land usage in
oil palm plantations.
✓ Implement mechanisation of FFB main line
evacuation and mobile crop monitoring
system to improve crop turnaround time and
reduce crop losses.
Plantation
Increase Oil Palm Yield
18
Strategic Priority 1
![Page 19: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/19.jpg)
➢ Target: Increase land to labour ratio by 20%.
✓ Mechanise FFB main line evacuation, in-field FFB collection, manuring and
empty fruit bunches (EFB) application to reduce dependence on manual labour.
✓ Increase harvesters’ productivity by 3% p.a. over the next five years.
✓ Implement integrated data platform and mobile crop monitoring system to
reduce and optimize plantation clerical staff.
Plantation
Reduce Plantation
Labour Requirement
19
Strategic Priority 2
![Page 20: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/20.jpg)
Plantation
Diversify Crops
20
➢ Target: Diversify planting of crops away from full
reliance on oil palm.
✓ Plant 6,000 ha of other crops, particularly high value
crops with main focus on coconut, kenaf and durian.
✓ Implement best cultivation practice for coconut,
kenaf and other crops (durian, pineapple, avocado
and banana).
✓ Introduce intercropping of fast growing crops such
as pineapple and banana to increase land output.
Strategic Priority 3
![Page 21: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/21.jpg)
Plantation
Expand Non-Crude Palm Oil (“CPO”) Segment
21
➢ Target: RM100 million operating profit identified from launched
projects.
✓ Convert oil palm by-products and processing waste into value-
added products at a competitive cost:
Strategic Priority 4
WASTES USAGE
OPT (Oil Palm Trunk) Produce palm wood panels for use as building
materials.
EFB (Empty Fruit
Bunches)
Steam and power generation, compost fertiliser,
paper pulp, industrial sugars for food & beverage.
Methane Gas from mill
Effluent
Biogas for steam and power generation.
![Page 22: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/22.jpg)
➢ Target: Increase operating profit contribution from oleochemical
segment by RM100 million.
✓ Expand manufacturing capacity through new plants and
debottlenecking.
✓ Enhance cost efficiency through automation.
✓ Develop new product applications in high-margin sectors like
pharmaceutical and beauty care.
✓ Increase and protect product margins through strategic
partnerships with multinational customers and patent
registration.
Plantation
Grow the Oleochemical Segment
22
Strategic Priority 5
![Page 23: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/23.jpg)
Sustainability
• One of the constituent stocks on the FTSE4Good Bursa Malaysia Index.
• All plantations in Malaysia are RSPO-certified.
• 58% of Malaysian plantations are ISCC-certified.
• Winner of the National Council for Occupational Safety and Health Award (Agriculture Industry).
• Ranked 13th with overall score of 71.9% in SPOTT rating and scored silver in EcoVadis Sustainability
Rating.
• Started Climate Change Action Initiative with target of reducing carbon intensity from operations in
year 2025 by at least 40% from year 2015 level.
23
Sustainability
![Page 24: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/24.jpg)
Sustainability
24
Awards and Achievement
![Page 25: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition](https://reader035.vdocuments.us/reader035/viewer/2022071505/6125ed283bb5ae5fe204dfe9/html5/thumbnails/25.jpg)
Thank You
25