SIME DARBY PLANTATION Credit Suisse Asian Investment Conference 2018 20 March 2018
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Table of Contents Section Page 1 Company Overview 4 2 Key Investment Highlights 9 3 Business Strategies & Future Plans 21 4 Industry Outlook 31 5 Financial Overview 34 6 Appendix 39 3
Company Overview 4
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 Production and sales of refined oils Focused on yield and productivity managing oil palm, rubber and and fats (which includes specialty improvements, increasing revenue sugarcane plantation estates and 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 oleochemicals, biodiesel products Development of green technology sugarcane and derivatives and renewable energy which includes bio-based chemicals, Others biogas and composting Cattle rearing and beef production Agribusiness Provision of agriculture products and services 5
Snapshot of Oil Palm Plantation Operational Statistics PNG & FY16/17 unless otherwise Malaysia Indonesia Liberia Total stated Solomon Islands Total oil palm 303,101 201,882 10,401 86,829 602,213 planted area (1) (ha) Mature area (1) (ha) 251,243 158,947 9,700 77,194 497,084 8% 7% 8% 9% 5% Palm tree age profile 17% 17% 11% 21% 12% & average tree 18% age (1) (Years) 24% 25% 12.5 yrs 14.1 yrs 4.9 yrs 11.8 yrs 12.8 yrs 10% 20% 19% 39% <3 yrs 4-8 yrs 9-18 yrs 19-22 yrs >22 yrs 21% 47% 37% 93% 32% FFB production 5.29 2.67 0.03 1.79 9.78 (mn MT/year) Mill production (mn MT/year) CPO 1.20 0.72 0.01 0.55 2.48 PK 0.29 0.16 0.00 0.14 0.58 FFB yield (MT/ha) 20.76 16.03 4.04 23.88 19.44 OER 20.56% 21.30% 18.73% 23.10% 21.29% KER 4.95% 4.67% 2.48% 5.73% 5.02% 6 Note:(1) As at 31 Dec 2017
Snapshot of Downstream Operations ~4.0 million MT NETHERLANDS Refining Capacity Sime Darby Unimills B.V. (450,000 MT/year) 12 UNITED KINGDOM VIETNAM New Britain Oils Ltd. Golden Hope Nha Be Refineries (300,000 MT/year) (99,000 MT/year) THAILAND Morakot Industries 73% (379,500 MT/year) Industrial Enterprises (IE) Average Refinery Soya (33,000 MT/year) Utilisation MALAYSIA Sime Darby Jomalina (429,000 MT/year) Nuri Refinery (660,000 MT/year) INDONESIA PAPUA NEW GUINEA SOUTH AFRICA PT Golden Hope Kumbango Sime Darby Kempas Sime Darby Nusantara (140,000 MT/year) (165,000 MT/year) Hudson & Knight (825,000 MT/year) (162,500 MT/year) Sime Darby Austral (330,000 MT/year) • Food: Palm oil products, specialty oils & fats, phytonutrients, refined PKO, Legend vegetable ghee, shortening & dough fat, industrial margarine, cooking oil, Bulk Processing KEY CPKO & PK cake for animal feed, and non-dairy products Differentiated Food PRODUCTS • Non-Food: Oleochemicals (high quality fatty acids, glycerine, fatty alcohols, triacetin, methyl esters, oilfield chemicals, ozone acids) and biodiesel 7 Note: Figures as at 31 Dec 2017
Downstream – Our renowned brands and winning products are used worldwide T O P 3 B R A N D S ( I N T E R M S O F R E V E N U E ) Jomalina Nuri Kempas Austral Nusantara Morakot IE Nha Be Unimills Liverpool H&K Kumbango Vema Bulk Bulk Bulk Bulk Bulk (no logo) B 2 B SD Food & Beverage Malaysia (SDFBM)* Morakot Nha Be & SD Edible Products Ltd (SDEPL)* B 2 C 8 * SDFBM & SDEPL is the sales and marketing arm of SDP which sells B2C products manufactured by Malaysian SDP refineries & third parties
Key Investment Highlights 9
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 10
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