vfb happening 24 maart 2018...sipef group company profile continuous production • continuous crops...
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VFB happening24 maart 2018
The Connection to the world ofSustainable Tropical Agriculture
Summary
SIPEF group – Company profile
SIPEF group – Palm oil in the world
SIPEF group – Expansion
SIPEF group – Financial performance
SIPEF groupCompany 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 TropicalAgriculture
SIPEF groupCompany profile
Continuousproduction
• Continuous crops
Diversified inproduct
• Palm oil : basic commodity for food (and recentlyenergy)
• Rubber : cyclic business - tire industry
Diversified inorigin
• Indonesia : leading producing country within Asianmarket
• PNG : export oriented with strong agronomical basics
The Connection to the world of Sustainable TropicalAgriculture
SIPEF groupCompany profile
SIPEF groupPlanted hectares summary – 31 December 2017
Palm Rubber Tea Bananas Other Total % Group share
Indonesia 55 686 6 425 1 752 63 863 82% 57 512
PNG 13 621 13 621 17% 13 621
Ivory coast 690 42 732 1% 732
69 307 6 425 1 752 690 42 78 216 100% 71 865
% 89% 8% 2% 1% 0% 100%
Group share 64 153 5 398 1 581 690 42 71 865
5
Summary
SIPEF group – Company profile
SIPEF group – Palm oil in the world
SIPEF group – Expansion
SIPEF group – Financial performance
Palm oil in the worldPopulation growth
• In the coming 40 years, mankind will have to produce more foodthan in the previous 10 000 years put together
• Population growth will havea huge impact on futurefood demands
• Rising middle class iscausing diet changes indeveloping countries
• Agricultural land isincreasingly becomingscarcer
Palm oil in the worldOil and fat consumption
Palm oil in the worldLand input
• Increased demandformeat/fat/processedfoods
• Increased demandfor biofuel
• DecreasingAgricultural landper capita
• Disposable incomegrowth indevelopingcountries
Palm oil in the worldVegetable oils
16%
21%
11%9%
6%
37%
Palm oil Soya oil
Rape oil Sunflower oil
Palm kernel and coconut oil Other oils/animal fats
1994/95: 93,1 million tonnes
Source: oilworld.de, December 2017
31%
24%
12%
9%
4%
20%
2017: 220,0 million tonnes
Palm oil Soya oil
Rape oil Sunflower oil
Palm kernel and coconut oil Other oils/animals fats
Palm oil in the worldComparison to other oils
Resources used per vegetable oil:
Palm oil in the worldPalm oil production
Source: oilworld.de, December 2017
54%
29%
4%
3%1%
6%
3%
2017 Palm oil production(Total of 67,1 Mn Tonnes)
Indonesia Malaysia Thailand Africa Oceania Middle & South America Oth. Countries
11%
2%
2%
6%
65%
14%0%
2014/15 World consumption
Europe Russia North America South America Asia and the middle east Africa Oceania
Palm oil in the worldPalm oil consumption
Source: oilworld.de, May 2015
12%
10%
20%
27%
10%
21%
31%
Biodiesel 2017(Total of 35,2 Mn tonnes)
Other oils & fats Used cooking oil Rapeseed oil Soya oil Palm oil EU Palm oil non-EU
3,5 Mn ton
Palm oil in the worldBiodiesel
Source: oilworld.de, December 2017
7,5 Mn ton
SIPEF groupVegetable oil prices
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
20
06
/01
20
06
/13
20
06
/25
20
06
/37
20
06
/49
20
07
/09
20
07
/21
20
07
/33
20
07
/45
20
08
/06
20
08
/18
20
08
/30
20
08
/42
20
09
/03
20
09
/15
20
09
/27
20
09
/39
20
09
/51
20
10
/12
20
10
/24
20
10
/36
20
10
/48
20
11
/10
20
11
/22
20
11
/34
20
11
/46
20
12
/07
20
12
/19
20
12
/31
20
12
/43
20
13
/05
20
13
/17
20
13
/29
20
13
/41
20
14
/02
20
14
/14
20
14
/26
20
14
/38
20
14
/50
20
15
/11
20
15
/23
20
15
/35
20
15
/47
20
16
/08
20
16
/20
20
16
/32
20
16
/44
20
17
/05
20
17
/17
20
17
/29
20
17
/41
20
18
/01
Palm Oil and its main competitors (weekly prices)
PALM OIL (CIF N.W. Europe) SOYA OIL (FOB Dutch mill) RAPESEED OIL (FOB Dutch mill)
Palm oil in the worldSustainable palm oil
2,29 Million Ha RSPO certified production area
Summary
SIPEF group – Company profile
SIPEF group – Palm oil in the world
SIPEF group – Expansion
SIPEF group – Financial performance
SIPEF groupStrategy and expansion
SIPEF group= 100.000 Ha planted (group’ share)
•Palmoil – Rubber – Bananas – Tea
•Indonesia – Papua New Guinea
Focus on core-business
Focus on ‘Sustainable Agriculture’ (RSPO)
Expansion of existing activities
Acquisition of new investments
Balanced leverage
18
ExpansionIncrease in Ha (Beneficial interest)
0
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
90.000
2005 2008 2016 2017 2022 2027
North Sum North Sum expansion Bengkulu Bengkulu expansion PNG
PNG expansion Musi Rawas Dendy Marker Ivory Coast Ivory Coast expansion
84 663 Ha
71 865 Ha
32 784 Ha
40 804 Ha
55 125 Ha
84 326 Ha
+30.4%
ExpansionIncrease in CPO production (Beneficial interest)
100%
120%
140%
160%
180%
200%
220%
240%
BI hectares
BI production
SIPEF groupSouth Sumatra expansion
21
South Sumatra
ExpansionMusi Rawas planted area up to December 2017
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
He
ctar
es
Cumulative Planted Area (Ha) AKL ARU AMR
ExpansionSouth Sumatra – planted hectares
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
South Sumatra expansion
Musi Rawas own PT Dendymarker own South Sumatra plasma
Summary
SIPEF group – Company profile
SIPEF group – Palm oil in the world
SIPEF group – Expansion
SIPEF group – Financial performance
SIPEF groupHistorical evolution NFP, equity and turnover
25
*2013* Restatement for IAS41R
-200
-100
0
100
200
300
400
500
600
700
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016 2017
InM
USD
Turnover
Equity USD
Net financial positionUSD
Result, share of theGroup
SIPEF groupDividend history
0,30 0,300,40
0,80 0,80
1,10
1,50
1,70 1,70
1,25 1,25
0,60
1,25
1,60
17%
23%22%
24%
21%
25% 25% 25%
32% 32%
30% 31% 31% 30%
0%
5%
10%
15%
20%
25%
30%
35%
0,00
0,20
0,40
0,60
0,80
1,00
1,20
1,40
1,60
1,80
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Dividend History Sipef
EUR/share Pay-out
SIPEF group2018 prospects
• We expect a 9% rise in palm oil production;
• Prices will remain steady;
• 41% of palm oil production for 2018 sold at USD 741 CIF Rotterdam;
• Capex primarily expansion in South Sumatra and replacement capex;
• Sale of BDM-ASCO:– Selling price set at EUR 35 million for 100%;– Capital gain of approximately USD 7 million;– Gross proceeds of KUSD 20 783 for further reduction of debt position.
Q&A
Source : http://www.rspo.org/ and SIPEF NV28