New Britain Palm Oil Ltd 2012 New Britain Palm Oil Ltd 2012 New - PowerPoint PPT Presentation

New Britain Palm Oil Ltd 2012

New Britain Palm Oil Ltd 2012

New Britain Palm Oil Ltd 2012 February 2012 Preliminary Results 2011 1

Recently upgraded facilities on New Britain 2

Introduction New Britain Palm Oil Ltd 2012 Record levels of oil palm fruit processed and palm oil produced during 2011 • Record revenue and earnings in 2011 • Clear growth strategy: plantation expansion onto grassland at RAMU, and margin growth at KPOL • • Total land holdings of 129,130 hectares, and 102,231 hectares under cultivation Unique vertical integration from seed to refjned product • Largest private employer in Papua New Guinea • Plan at IPO in late 2007 to double plantation area in 7 - 8 years, achieved in 3 • Demand for palm oil as the cheapest vegetable oil foodstuff remains high and is aligned to the urbanisation of emerging • economies and rise of the middle class New Britain Oils (downstream palm oil refjning and processing) reporting excellent progress in Liverpool, UK • 3

NBPOL plantation in West New Britain, PNG 4

Highlights - 2011 New Britain Palm Oil Ltd 2012 2011 2010 FFB processed (million tonnes) 2.4 1.9 21% CPO / PKO produced (tonnes) 591,477 478,667 24% Average CPO price achieved ($ / tonne) $1,108 $850 30% 2011 2010 Revenue ($m) 780 461 69% 88% EBITDA* ($m) 337 179 Profjt before tax* ($m) 276 131 110% Earnings per share* (US ¢) 141 60 134% * Excluding IAS 41 5

Nursery estates in New Britain 6

Highlights - 2011 New Britain Palm Oil Ltd 2012 Group had cash holdings at the end of 2011 of $60.1m, with a further $81.5m in trade oil debtors, which has subsequently • been received At the end of 2011 forward sales of c.144,750 tonnes of CPO of 2012 production had been made at an average price of • $1,057/tonne As at 15 February 2012 this fjgure was c.220,000 tonnes at an average price of $1,078/tonne • Palm product extraction rates increased to 28.2% (2010: 27.5%) • KPOL integration is making progress, with a contribution of $57.8m to PBT in 2011 • The performance of the Liverpool refjnery has exceeded expectations and is currently achieving high utilisation rates, Bakery • Fats plant has been commissioned Resumption of dividend in October 2011 with an interim payment of $0.15, a fjnal dividend of $0.15 will be payable in April • 2012, taking the full year gross 2011 dividend to $0.30 per NBPO share 7

Milling in progress 8

Historical Financials New Britain Palm Oil Ltd 2012 2,000 1100 CPO CIF Rotterdam (US$/MT) 900 1000 Revenue NBPOL share price (GBp) 1,800 800 PBT 900 1,600 700 NBPOL share price (GBp) 800 CPO $ / MT 600 1,400 700 $m 500 600 1,200 400 500 1,000 300 400 800 200 300 600 100 200 100 400 2004 2005 2006 2007 2008 2009 2010 2011 12/05 06/06 12/06 06/07 12/07 06/08 12/08 06/09 12/09 06/10 12/10 06/11 12/11 Note: excluding effects of I AS41 9

NBPOL nursery, critical for expansion schedule 10

Historical Operational Indicators New Britain Palm Oil Ltd 2012 Growth in Group Fresh Fruit Bunch (FFB) volume 2,500,000 2,400,000 2,300,000 Growth in Oil Palm Plantations 2,200,000 85,000 2,100,000 2,000,000 80,000 1,900,000 Tonnes FFB % 75,000 1,800,000 0 . 5 1 1,700,000 : R 70,000 G A 1,600,000 C 1,500,000 65,000 1,400,000 60,000 CAGR:17.5% 1,300,000 1,200,000 55,000 1,100,000 1,000,000 50,000 900,000 Hectares 45,000 800,000 2004 2005 2006 2007 2008 2009 2010 2011 40,000 Growth in Palm Oil Produced 600,000 35,000 560,000 30,000 520,000 25,000 480,000 CAGR: 16.3% 440,000 20,000 400,000 15,000 360,000 Tonnes 10,000 320,000 280,000 5,000 240,000 0 2004 2005 2006 2007 2008 2009 2010 2011 200,000 160,000 120,000 80,000 40,000 0 2004 2005 2006 2007 2008 2009 2010 2011 11

NBPOL and RAIL maintain a stock of cattle (of >19,000 head) utilising Palm Kernel Expeller, a high protein co-product of palm oil production 12

Performance in Context New Britain NBPOL share price, CPO, FTSE 250 Palm Oil Ltd 2012 450 CPO CIF Rotterdam NBPOL share price 400 FTSE 250 350 100 = NBPOL IPO in London (Dec. 2007) 300 250 200 150 100 50 0 12/2007 06/2008 12/2008 06/2009 12/2009 06/2010 12/2010 06/2011 12/2011 06/2012 13

Oil palm nursery 14

Delivering Growth at NBPOL: New Britain Plantation expansion and margin growth Palm Oil Ltd 2012 1. Plantation Expansion 2. Margin Growth Total NBPOL Land Bank Cost of production (CoP) at NBPOL CoP - West New Britain NBPOL estates 1,400 CoP - KPOL estates CoP - NBPOL Group CPO - CIF Rott 1,200 1,000 US$/tCPO 800 600 400 Existing NBPOL oil palm estates Land owned and available for planting by NBPOL 200 NBPOL sugar estates Land in process of acquisition 0 01/01/2006 01/01/2007 01/01/2008 01/01/2009 01/01/2010 01/01/2011 01/01/2012 Within its current land bank NBPOL has c.12,000 The KPOL estates should, in time, deliver some of NBPOL’s most • • hectares of land designated for new oil palm plantations productive and highest margin estates A further c.15,000 hectares of land is in the process of CoP at KPOL should, in time, move toward or better the existing • • being acquired by NBPOL to ultimately form new oil NBPOL estates palm plantations 15

Recently upgraded storage tanking owned by NBPO at Kimbe port, PNG 16

Hectarage Valuation New Britain - The impact of KPOL Palm Oil Ltd 2012 EV ($) / Mature Hectare 35,000 30,000 $27,562 25,000 Taking into account mature EV ($) / Ha oil palm only and assuming 20,000 c.68,000 managed mature hectares within the enlarged NBPOL group 15,000 10,000 $8,670 5,000 0 KPOL NBPOL at time of acquisition (as at Jan 2012) 17

Harvesting techniques Pollinisation and breeding programme 18

Global Edible Vegetable Oil Market New Britain Palm Oil Ltd 2012 Edible oils stocks : usage ratio continues to fall and palm oil prices continue to rise... • ...in spite of an unprecedented increase in global palm oil production of 9% in 2011 to some 50m tonnes • 12.50 12.00 Edible Oils - World Stocks : Usage Ratio (%) 11.50 11.00 10.50 % 10.00 9.50 9.00 8.50 8.00 1989/1990 1990/1991 1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 Source: USDA 19

The controlled cultivation of oil palms in the nursery contributes to NBPOL’s successful replanting programme and relatively young oil palm age profjle 20

Palm Oil New Britain Palm Oil Ltd 2012 • A vegetable oil used extensively in Asian and EU food markets and personal healthcare products • The most productive vegetable oil • High barriers to entry: signifjcant capex requirement and logistic support plus 3 - 4 years for a new plantation to yield fruit • High competition for suitable land Indicative oil yields Palm Oil (NBPOL) NBPOL Example Customers Palm Oil (World Average) • Ferrero Rape • Jordans • Wilmar Sun • United Biscuits Soya Source: USDA/NBPOL • c.90% of NBPOL’s output is sold into the EU in 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 US$ contracts Globally achieved Oil yield (tonnes / Ha) Crop composition of land used globally Composition of global to produce vegetable oils vegetable oil production 6% 15% Palm 36% 37% Rape 62% 17% Sunseed 11% Soya 16% Source: USDA 21

Palm oil shipment from PNG into the UK refjnery 22

NBPOL Location New Britain Palm Oil Ltd 2012 New Britain Oils The fjrst fully segregated and traceable sustainable • palm oil refjnery in the UK. New bakery foodstuffs NEW IRELAND facility now completed KPOL, Poliamba - acquired in April 2010 5,536 hectares oil palm • • Kimbe GPPOL PAPUA NEW GUINEA - acquired in April 2005 Lae • 6,318 hectares oil palm NEW BRITAIN Main area of NBPOL operation 36,126 hectares oil palm • SOLOMON RAIL - acquired in Oct 2008 ISLANDS • 10,685 hectares oil palm 78,332 total hectares of 7,720 hectares sugar cane • 8,888 hectares pasture managed oil palm plantations 68,438 hectares under harvest • KPOL, Higaturu KPOL, Milne Bay - acquired in April 2010 - acquired in April 2010 An additional c.42,000 hectares 8,533 hectares oil palm 11,134 hectares oil palm • cultivated by smallholders 129,130 hectares of total • land area with 102,231 under cultivation AUSTRALIA 23

Sterilisation of palm fruits, key fjrst stage processing 24