Univanich Palm Oil Public Company Limited Krabi Thailand Krabi - PowerPoint PPT Presentation

Welcome to Welcome to Univanich Palm Oil Public Company Limited Krabi Thailand Krabi Thailand www. Univanich.com 258 Aoluk-Laemsak Road, Aoluk, Krabi, 81110 email : info@univanich.com Tel : 0 7563 4634 Fax : 0 7568 1124

2 Contents of Briefing Contents of Briefing 1- World Overview 1- World Overview 2- Thailand Overview 2- Thailand Overview 3- Univanich Company 3- Univanich Company 4- Performance in 2006 4- Performance in 2006

3 World Consumption of 17 17 Oils and Fats Oils and Fats World Consumption of World Consumption of 17 Oils and Fats Million tonnes 160.0 150.0 143.8 140.0 Million tonnes 130.0 120.0 113.3 110.0 100.0 92.8 90.0 80.0 80.0 1990 1995 2000 2005 2010

4 8 Major Oils Major Oils : : Share in World Production Share in World Production 8 8 Major Oils : Share in World Production 2005 : 109.2 mil tonnes 1992 : 58.80 mil tonnes Palm Kernel Oil (3.6%) Coconut Oil Cotton Oil (2.9%) PalmKernelOil (4.6%) (2.6%) Coconut Oil Cotton Oil Sunflower Oil (4.8%) (7.5%) Palm Oil (8.8%) (30.7%) PalmOil (20.1%) Groundnut Oil Sunflower Oil (4.1%) (13.9%) Groundnut Oil Rape Seed Oil (6.4%) (14.6%) Rape Seed Oil Soya Oil (16.1%) (28.6%) Soya Oil (30.6%)

5 World Edible Oils and Fats Consumption World Edible Oils and Fats Consumption World Edible Oils and Fats Consumption Reasons for Consumption Growth 1990 2005 2010 * 1) World Population (billions) 5.30 6.40 6.65 * 2) Average Consumption (kg/capita/year) ?? 15.29 20.53 ?? ?? New consumption of biofuels will increase 2005 - 2010 consumption trend ??

6 Edible Oils and Fats Consumption Edible Oils and Fats Consumption Edible Oils and Fats Consumption Kg per Capita 60 50.9 50.5 50 40 World average 20.5 kg per person 30 18.9 20 11.5 10 0 USA EU China India Population (million) 291 378 1,290 1,000

7 China’ China ’s Consumption of Edible Oils and Fats s Consumption of Edible Oils and Fats China’s Consumption of Edible Oils and Fats Kg per Capita 18.9 20 17.9 18 15.6 14.8 16 13.6 14 12 10 7.7 8 6 4 2 0 1991 2000 2001 2002 2003 2004

8 World Production of Palm Oil World Production of Palm Oil World Production of Palm Oil million tonnes 40 million tonnes 35 33.52 30 25 21.88 20 15.20 15 11.02 10 7.04 4.58 5 0 1980 1990 2000 1985 1995 2005

9 EU Palm Oil Consumption, EU Palm Oil Consumption , EU Palm Oil Consumption, 1991 1991- - 2005 2005 1991- 2005 Million Tonnes 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 1991/92 1994/95 1997/98 2000/01 2003/04 EU Demand Trend 1990-2004

10 THAILAND THAILAND’ ’s OIL PALM INDUSTRY s OIL PALM INDUSTRY THAILAND’s OIL PALM INDUSTRY

11 แหลงน้ํามันพืชและไขมันบริโภคในประเทศไทย แหลงน้ํามันพืชและไขมันบริโภคในประเทศไทย Thailand’ ’s main sources of Oils s main sources of Oils & & Fats Fats Thailand Thailand’s main sources of Oils & Fats Sunflower Oil Palm Oil Others (9.0%) (4.0%) Coconut Oil (56.0%) (4.0%) Rice Bran Oil (4.0%) Soya Bean Oil (18.0%) Palm Kernel Oil (5.0%) Source: Ministry of Agriculture of Thailand

12 Growth of Oil Palm Area in Thailand Growth of Oil Palm Area in Thailand Growth of Oil Palm Area in Thailand Hectares 450,000 438,900 hectares 2,743,131 Rai 400,000 Mostly Smallholders 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 7 7 7 7 7 8 8 8 8 8 9 9 9 9 9 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2

Location of 35 Location of 35 Crushing Mills in Thailand Crushing Mills in Thailand 13 Location of 35 Crushing Mills in Thailand • CHIANGMAI • KONKHAEN • BANGKOK PHUKET • • KRABI • HATYAI

14 Uses of Palm Oil in Thailand Uses of Palm Oil in Thailand Uses of Palm Oil in Thailand Margarine shortening Edible Oil (55.0% ) (9.0% ) (Cooking Oil) Food Industry (25.0% ) (snack food, condensed milk, coffee mate) Animal feeds Soap industry (7.0% ) (4.0% ) Source: Ministry of Agriculture of Thailand Note : Biofuel / biodiesel does not yet feature in official statistics. Potential to consume 30% of production within 3 years.

15 Government’ Government ’s revised target for Oil Palm Planting s revised target for Oil Palm Planting Government’s revised target for Oil Palm Planting Million Rai 12.0 10.0 mil rai 10.0 7.7 mil rai 8.2 mil rai 8.0 New target for 2009 6.7 mil rai 6.0 5.2 mil rai 4.0 3.7 mil rai 2.7 mil rai 2.0 1.4 mil rai 1.0 mil rai 0.0 1995 2000 2005 2010 2015 2020 2025 2030 New planting target 2006 - 2009 = 5.0 million rai To meet target of 10% 10% biodiesel blend by biodiesel blend by 2012 2012 To meet target of

16 The Effect of Drought on Thailand’ ’s Palm Oil Production s Palm Oil Production The Effect of Drought on Thailand The Effect of Drought on Thailand’s Palm Oil Production Increase / 2003 2004 2005 ( Decrease) 1- Oil Palm Area 2.04 2.39 2.74 + 34.5 % (million rai) 2- Crushing Capacity 1,569 1,779 2,019 + 28.7% (tonnes/hour) 3- Palm Oil Production 864,000 821,000 784,000 (- 9.3%) (mt CPO)

Thailand’ ’s Monthly CPO Production 2003 s Monthly CPO Production 2003 - - 2006 2006 Thailand Thailand’s Monthly CPO Production 2003 - 2006 17 Thousand Tonnes CPO 140 120 100 80 60 40 20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Thousand Tonnes 2003 2004 2005 2006 YTD CPO Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total 2003 863.8 32.7 53.1 86.5 92.0 112.5 105.1 92.8 73.4 69.9 62.1 46.3 37.6 2004 820.8 32.2 46.2 67.5 72.8 88.2 78.2 74.8 77.1 77.1 79.2 70.2 57.4 2005 784.0 49.3 55.3 84.8 83.5 81.5 69.7 67.7 68.6 70.4 63.2 50.0 40.0 2006 989.7 38.6 71.0 117.3 127.3 128.0 95.3 90.0 101.7 106.5 114.1

18 UNIVANICH COMPANY UNIVANICH COMPANY UNIVANICH COMPANY

19 Background of Univanich Business Background of Univanich Business Background of Univanich Business > Founded in 1969 Pioneer of first oil palm plantings in Thailand > 1973 : First Palm Oil Crushing mill constructed > 1983 - 1998 : Joint Venture with Unilever PLC of UK Amalgamation of 3 companies to form Univanich Group Thai Oil Palm Industry and Estate Co., Ltd. Univanich Group Univanich Group Hup Huat Palm Oil Industry Co., Ltd. (51% Unilever) Siam Palm Oil and Refinery Industry Co., Ltd.

20 Background (continued) > 1998 : Unilever’s 51% stake sold to JV partners Global strategy to focus on core consumer products > 2003 : UVAN Listed on Stock Exchange of Thailand Approximately 80% Thai, 20% Foreign shareholders > 2005 : Produced approximately 12% of Thailand’s Crude Palm Oils 20% exported, 80% domestic sales

21 Univanich Locations Univanich Locations Univanich Locations Topi Factory Topi Factory AOLUK Siam Factory Siam Factory Lamthap Factory

Univanich Business Operations Univanich Business Operations Univanich Business Operations 22 2006 2006 2006 Univanich Oil Palm Seedlings for Seedlings for new planting replanting Research Centre Own Plantations Outside Fruit Purchases 4 Estates outgrower small farmers 37,500 rai (6,000 ha) approx 1,500 small growers approx 170,000 rai (27,200 ha) 3 Crushing mills 18% Raw material 82% Raw material (135 tonnes fruit per hour) 127,000 mt 580,000 mt CPO PKO PKC 127,000 mt 16,800 mt 18,700 mt Approx 75% 75% CPO CPO/ /PKO exported in PKO exported in 2006 2006 Approx

23 Univanich Long Term Growth Trend Univanich Long Term Growth Trend Univanich Long Term Growth Trend Fruit Processed 1990 - 2006 (thousand tonnes) 600 557 9 months 2006 545 506 507 500 466 428 400 374 338 336 304 300 286 253 235 231 185 200 149 136 100 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 9 M 06 Estate Fruit Purchased Fruit

24 Univanich Long Term Growth Trend Univanich Long Term Growth Trend Univanich Long Term Growth Trend Total Palm Oil Production 1990 -2006 (thousand tonnes) 120 112.2 9 months 2006 107.6 102.3 101.0 100 96.2 87.6 80 72.5 68.1 65.5 60.5 60 51.7 52.4 51.6 48.7 39.7 40 32.0 29.2 20 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 9 M 06 PKO CPO

25 Business Growth Business Growth Business Growth

26 New Lamthap Factory opened October 2004 New Lamthap Factory opened October 2004 Increased Univanich capacity by 50%

27 New Lamthap Factory Office New Lamthap Factory Office & & Weighbridge Weighbridge Capacity to be filled over next 3 years

28 Capacity for expansion at new Lamthap Factory Capacity for expansion at new Lamthap Factory 45 mt per hour can be expanded to 90 mt per hour in future

29 New PKO Plant at Lamthap New PKO Plant at Lamthap 2005 : PK crushing capacity expanded by 70%