CIMB Annual Malaysia Corporate Day 4 January 2019
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Table of Contents SEC T I O N PAG E 1 Company Overview 4 2 Key Investment Highlights 9 3 Business Strategies & Future Plans 24 4 Industry Outlook 35 5 Financial Overview 42 6 Appendix 49
Company Overview
5 Business Overview Integrated Plantation Company Involved in the Entire Palm Oil Value Chain Upstream Downstream Others Oil palm estate Mill Refinery Food application High-yielding Renewables genome seeds Oil palm, rubber & sugarcane estates Bulk and refined oils & fats R&D Developing, cultivating and managing Production and sales of refined oils Focused on yield and productivity oil palm, rubber and sugarcane and fats (which includes specialty and improvements, increasing revenue plantation estates end-user oils and fats) streams and developing sustainable practices while pursuing innovative strategies Milling of FFB and processing & sales Oleochemicals, biodiesel products & derivatives Milling of FFB into CPO and PK Renewables business Production and sales of Processing and sales of rubber and Development of green technology oleochemicals, biodiesel products sugarcane and derivatives and renewable energy which includes biogas and composting Others Cattle rearing and beef production Agribusiness Provision of agriculture products and services
6 Snapshot of Oil Palm Plantation Operational Statistics PNG & FY17/18 unless Malaysia Indonesia Liberia Total otherwise stated Solomon Islands Total oil palm planted 301,027 201,220 10,442 87,304 599,993 area(ha) Mature area (ha) 252,055 158,180 9,701 77,500 497,436 9% 7% 8% 12% 3% 10% 16% 17% 11% 21% Palm tree age profile & 18% average tree age 23% 26% (Years) 12.7 yrs 14.1 yrs 5.4 yrs 11.4 yrs 12.8 yrs 22% 12% 20% 38% <3 yrs 4-8 yrs 9-18 yrs 48% 19% 19-22 yrs >22 yrs 35% 93% 32% FFB production 5.822 2.615 0.065 1.731 10.233 (mn MT/year) CPO production (Total) 1.419 0.710 0.016 0.508 2.653 (mn MT/year) PK production (Total) 0.357 0.160 0.003 0.130 0.650 (mn MT/year) FFB yield (MT/ha) 23.13 16.40 6.78 22.36 20.51 OER 20.40 21.39 20.60 22.41 21.02 KER 5.13 4.80 3.97 5.75 5.15
7 Snapshot of Downstream Operations ~4 million MT Refining Capacity 10 * Refineries 73% * Average Refinery Utilisation Key Products Refined bulk products Ingredients produced by Non-food products produced by the Group’s bulk the Group’s refineries: produced by the Group’s Note: Bulk Processing Differentiated Food refineries: RBD Olein, RBD Bakery fats, specialty oils, biodiesel, oleochemicals * Excluding Industrial Enterprises (IE) Soya in Thailand and GH Nhabe in Vietnam Stearin, CPKO, RBD PKO, etc. confectionery fats and nutrition plants Figures as at 30 June 2018
8 Downstream – Our renowned brands and winning products are used worldwide T OP 3 B RANDS ( I N T E R M S O F R E V E N U E ) Jomalina Nuri Kempas Austral Nusantara Morakot Unimills Liverpool H&K Kumbango Vema Bulk Bulk Bulk Bulk (no logo) B 2 B SD Food & Beverage Malaysia (SDFBM)* Morakot & SD Edible Products Ltd (SDEPL)* B 2 C * SDFBM & SDEPL is the sales and marketing arm of SDP which sells B2C products manufactured by Malaysian SDP refineries & third parties
Key Investment Highlights
10 Investment Highlights 1 Strong Investment Proposition The World’s Largest Oil Palm Plantation Company by Oil Palm 2 Planted Area, with Established Reputation as the World’s Largest Producer of Certified Sustainable Palm Oil 3 Well Positioned to Benefit from Sound Industry Fundamentals & Strong Demand Growth Trends 4 Fully Integrated Business Model with Diversified Operations Along the Palm Oil Value Chain 5 Innovative & Market Leading R&D Supports Operational Efficiency & Productivity 6 Experienced and Sound Board & Management Team
11 Sime Darby Plantation’s Strong Investment 1 Proposition 23 MT/ha 61% 21 MT/ha 40% As at 30 Jun As at 30 Jun 2017 2018 of Net Profit FY18 FY23 Target G R O S S F F B Y I E L D G E A R I N G FFB STRENGTHENING LOWERING IMPROVING HIGH PRODUCTION DOWNSTREAM COST GEARING & DIVIDEND GROWTH CONTRIBUTIONS & CASH FLOW POLICY POTENTIAL MARGINS
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