New Britain Palm Oil Ltd New Britain Palm Oil Ltd New Britain Palm - PowerPoint PPT Presentation

New Britain Palm Oil Ltd

New Britain Palm Oil Ltd

New Britain Palm Oil Ltd February 2014 Preliminary Results FY2013

Facilities on New Britain

Introduction New Britain NBPOL Today Palm Oil Ltd Seeds Plantations NBPOL is one of the world’s largest Land bank 134,600 ha private seed producers c.80,000 hectares of NBPOL managed oil palm Highly respected plant breeding plantations research and development More than 42,500 mature hectares cultivated Important for success of wider business by smallholders supplying NBPOL Revenue contribution All plantations (including smallholders) covered Palm Oil Sales by the same RSPO certificate Seed Sales Milling and Refining Cattle Production 12 oil mills in Group Sugar Sales Cattle 2 refineries 9,282 hectares of cattle grazing land Special fractionation plant completed for Integrated with the palm oil plantation Ferrero Bakery fats plant in the UK >20,000 head of cattle Infrastructure c.80,000 tonnes / oil storage capacity RAIL Trucking transport fleet Housing 1 sugar mill Two methane capture facilities 1 ethanol plant Export terminals 7,718 hectares sugar cane 5

Introduction New Britain NBPOL Locations Palm Oil Ltd New Britain Oils Commissioned in March • 2010, the first fully segregated and traceable sustainable palm oil refinery NEW IRELAND in the UK. Bakery fats plant KPOL, Poliamba now operational - acquired in April 2010 5,600 hectares oil palm • • Kimbe PAPUANEWGUINEA GPPOL - acquired in April 2005 Lae • NEWBRITAIN 6,300 hectares oil palm Main area of NBPOL operation 37,000 hectares oil palm • SOLOMON RAIL ISLANDS - acquired in Oct 2008 • 11,500 hectares oil palm 7,700 hectares sugar cane 8,888 hectares pasture  c. 80,000 total hectares of managed oil palm plantations KPOL, Higaturu KPOL, Milne Bay - acquired in April 2010 - acquired in April 2010  An additional c.42,500 hectares 8,800 hectares oil palm 10,700 hectares oil palm cultivated by smallholders Orangerie Bay Plantations - acquired in July 2012 c. 5,350 hectares to be planted with oil palm 6

Introduction New Britain Preliminary Results FY2013 Palm Oil Ltd  Challenging period for the Group  Profitability compared to FY2012 impacted by several principal factors: • Lower average selling prices for crude palm oil and palm kernel oil • Lower production mainly due to heavy rainfall early in the year, the Group’s accelerated replanting of over 6,500Ha of aged palms at Kula plantations during 2012 and 2013, and biological yield declines in the second half of the year • Net foreign exchange losses of US$17.5m comprised primarily of non- cash currency adjustments on the Group’s USD denominated loans  Significant investment in prior years enabled the Group to scale back its capex programme in FY2013 to reflect market conditions  Cash generation remained solid enabling a 16.6% reduction in overall Group gearing  Devaluation of the PNG Kina by approximately 17% during the year reduced cash costs of production 7

Highlights - 2013 New Britain Palm Oil Ltd 2013 2012 Year Ended 31 December FFB processed (tonnes) 2,085,670 2,273,081 CPO / PKO produced (tonnes) 507,856 545,207 Average CPO price achieved ($ / tonne) 868 1,062 Revenue ($m) 558.7 677.0 EBITDA* ($m) 96.8 162.1 Profit Before Tax* ($m) 17.3 81.6 Profit Before Tax* ($m) 40.5 72.5 (excl. non-cash FX losses on USD loans) Earnings Per Share* (US ¢ ) 7.4 36.0 *Excluding IAS 41 adjustments. Note: 2013 figures unaudited. 8

Highlights - 2013 New Britain Palm Oil Ltd  Processed 1,496,146 tonnes of FFB from Group estates (2012: 1,588,486)  Processed 589,524 tonnes of FFB from smallholders (2012: 684,594), representing 28.3% of total Group FFB processed (2012: 30.2%)  Palm product extraction rates decreased to 27.50% (2012: 27.59%)  Crude palm oil extraction rate decreased to 22.15% (2012: 22.35%)  New kernel crushing plants at the KPOL sites contributed to Group PKO production of 45,796 tonnes, an increase of 22.9% on 2012  Seed sales of 6.9m seeds, a decrease of 53.4% on 2012  Sugar revenues of US$46.0m, a decrease of 17.7% on 2012  The Liverpool refinery recorded strong EBITDA growth year-on-year driven by gross margin expansion and sales volume increase  Continued progress on Group’s cost optimisation and efficiency review, achieving the targeted circa $35m of year-on-year savings  Total Group borrowings decreased 16.6% to US$272.6m (2012: US$326.7m)  Interim dividend of $0.10 per share was paid in November 2013 9

Price Performance New Britain NBPOL share price, CPO, PKO Palm Oil Ltd NBPOL Share Price and Palm Product Prices  Global palm oil prices traded in a range between US$800 and US$900/tonne for most of 2013, averaging $853 versus $1,001 1600 1000 for 2012 1500 900 1400 CIF Prices (US$/MT) 800 • 1300 Palm prices started the year negatively reflecting the NBPO.LN (p) 1200 overhang of palm oil stocks in Malaysia and Indonesia 700 1100 600 1000 • Some improvement was seen during the first half of the 900 500 year as stock levels decreased, but the price retraced to a 800 low of $785/tonne as Malaysia and Indonesia entered 400 700 their peak production period 600 300 • Prices ended the year on a positive note reaching a high of $935/tonne in November following a sharp reduction in inventory levels and strong demand, driven partly by CPO CIF (US$/MT) CPKO CIF (US$/MT) NBPO.LN (GBP) biodiesel usage Palm Oil vs. Soyoil; PKO vs. CNO  A similar trend was seen in PKO prices for most of the year 400 • PKO prices averaged US$900/tonne in 2013 (versus 300 US$1,108/tonne in 2012) 200 US$/MT • PKO averaged a premium of 5% over CPO during 2013 100 0  PKO and other lauric oil prices increased significantly late in 2013, driven primarily by the expected supply concerns following -100 typhoon Haiyan in the Philippines (a major producer of coconut oil) -200  CPO is currently trading around US$930/tonne, while PKO is trading around US$1,300/tonne SBO FOB Arg - RBD Olein spread CNO-PKO CIF RDM Source: Bloomberg, Reuters 10

New Britain Balance Sheet - 2013 Palm Oil Ltd Reduction in total borrowings during 2013 (USDm) 350 Total Debt: US$326.7m 25.0 300 Total Debt: US$272.6m 47.0 13.2 250 35.9 49.1 41.9 200 150 120.0 120.0 100 50 85.6 61.6 0 2012 2013 Long Term Debt - amortising Long Term Debt - non-amortising Short Term Financing - Liverpool RAMU Short Term Trade Finance 11

New Britain Oils New Britain Liverpool Refinery Palm Oil Ltd Liverpool Refinery Quarterly % Volume Increase (versus Q3 2010)  EBITDA positive and strong EBITDA growth year-on-year, driven by gross margin expansion and sales volume 250% increase 200%  Continued growth in packed customer numbers 150%  A second deodoriser was successfully installed and commissioned during the first half of the year, increasing nameplate capacity to 300,000 MT per annum 100%  Significant further upside potential on the bakery products 50% business 0% • In-house test bakery opened to ensure our Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 products meet exacting customer requirements Liverpool Refinery Rolling 12 Month EBITDA/MT • New products have also been successfully £50.00 developed £40.00 KEY FACTS The first palm oil provider able to guarantee fully £30.00 traceable, sustainable palm oil direct from the plantation to the EU consumer £20.00 Key contracts with well known UK and EU brands £10.00 Captures greater margin share for NBPOL World’s first dedicated sustainable bakery £- foodstuffs production facility operational since 2012 £(10.00) 12 Source: Unaudited management figures

Corporate Events New Britain Palm Oil Ltd  NBPOL entered into a ground-breaking agreement with Olenex C.V. (a joint venture between Archer Daniels Midland Company (“ADM”) and Wilmar) to supply ADM and Wilmar with fully traceable, certified sustainable palm oil (refer to slide 23 for further details)  The Group entered into a joint venture with SIPEF N.V. and BioSing to develop high yielding F1 hybrid oil palms • JV aims to achieve significant yield and productivity enhancements for the palm oil industry • An F1 hybrid variety is the first generation offspring of two distinctly different and genetically uniform parents, each with identical sets of chromosomes • This breeding technology has the potential to at least double conventional palm oil yields per unit of area (based both on the historic yields achieved by other F1 hybrid crops such as corn (maize), and on oil palm's estimated physiological yield potential) 13