corporate presentation - musim mas group centre...musim mas professorship in sustainability program...
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© 2016 Musim Mas Holdings Pte. Ltd. Co.
About Musim Mas
Corporate Presentation
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Disclaimer
This presentation was prepared solely and exclusively for the parties who are
invited for discussion. Neither this presentation nor any of its content should be
reproduced, disclosed or used without the prior written consent of Musim Mas.
© 2016 Musim Mas Holdings Pte. Ltd. Co.
History
1932
1970
1988
2003
2015
Started as a modest soap factory
Started the first palm oil refinery in Indonesia
Started plantation in Rantau Prapat,
North Sumatra
Started Oleochemicals plant
Fully integrated palm oil corporation
across 13 countries
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Musim Mas at-a-Glance
Headquarter : Singapore Number of countries with operational presence: 13 Number of countries where we sell our products: Global Number of employees: 28,500 people worldwide
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Global Footprint
United States
United Kingdom
Germany
The Netherlands
Spain
India
China
Vietnam
Malaysia
Indonesia
Singapore
Italy
Global Footprint
Sales Office
Refinery
Plantation
Oleochemicals plant
Biodiesel
Ethoxylation plant
Derivative products
Storage tank
Legend Brazil
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Integrated Business
Plantation Mill Refinery Processing
Plants Logistics
Cultivate
seedlings and
manage oil palm
plantations.
Produce crude
palm oil
from the fruits
( Fresh Fruit
Bunches)
- Merchandise
and ship the
products
globally.
- Tank storage
Process palm oil into different products :
- Cooking oil - Biodiesel
- Oleochemicals - Palm wax
- Specialty fats
- Functional products
UPSTREAM DOWNSTREAM
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Product Applications
Industrial
Energy
Personal Care and Household
Food
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Leading Market Player
One of the top players in the palm oil industry, with
12% of the global market share
2010
4.9
2012
6.5
2013
6.8
2008
3.9
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Sales Volume
Tonnes
Year
8 million
7 million
6 million
5 million
4 million
3 million
2 million
1 million
0
2011
5.5
2014
7.5
2009
5
2015
8.1
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Group Sales in 2015
Asia, Oceania &
Middle East
57% Europe &
Africa
33%
GROUP S A L E S
America
10%
Group Division
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Chemical tankers, coastal tankers, tugboats, tank storage and barges 34 units; 1000 units of trucks
Oleochemicals/Biodiesel/ Specialty Fats Annual Capacity approx. 3 million tonnes
Annual capacity 9 million tonnes
Developed area 130,000 ha
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Group Oil Yield per Hectare
Tonnes per
ha
Year
Industry average
6.5
6
5.5
5
4.5
4
3.5
3
2008 2009 2010 2011 2012 2013 2014
4.57 4.54 4.66 4.65
5.63 5.92
5.67
2007
6.26
2015
6.05
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Sustainable Palm
Oil
Musim Mas Sustainability Policy
• Announced on 4th December 2014
• Affirms the Group’s commitment towards sustainable palm oil
Bring benefits
to the
community
No deforestation
of High
Conservation
Value (HCV)
areas and High
Carbon Stock
(HCS) forests
No development
of peatland
regardless of
depth
Fully comply
with local,
national and
international
laws
Establish
traceable
supply chains
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Milestones
15
2004 2010 2012 2013 2015
▪ First plantation in Indonesia to attain RSPO1 certification
▪ First in Indonesia to join the RSPO1
• First major group to be 100% RSPO1 certified for all plantations in Indonesia
• First to receive the certification for ISPO2
▪ First smallholder scheme in Indonesia to attain RSPO1 certification
▪ Comprehensive Sustainability Policy extended to third-party suppliers
• Signed on the IPOP4
• Joined the POIG5
1 Roundtable on Sustainable Palm Oil 2 Indonesian Sustainable Palm Oil 3 Environmental Protection Agency Renewable Fuel Standard 4 Indonesia Palm Oil Pledge 5 Palm Oil Innovation Group
2009 2014
▪ One of the two companies in Indonesia obtain the EPA RFS3
© 2016 Musim Mas Holdings Pte. Ltd. Co.
RSPO Principles & Criteria
Legal
compliance
Long term
economic
viability
Agricultural
Best
Practices
Continuous
improvement
Responsible
new planting
Local
communities
and
employees
Environmental
responsibility
Transparency
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Palm Oil Innovation Group (POIG)
• We joined POIG on 16 November 2015.
• Other POIG members include sustainability leaders such as
Agropalma and Daabon, Danone and Ferrero, as well as
NGOs such as Forest Peoples Programme, Greenpeace,
Rainforest Action Network and WWF.
• Members are committed to the POIG Charter:
Support the RSPO and innovate on RSPO existing
standards and other critical issues.
Focus on environmental responsibility, communities, and
corporate and product integrity.
Create innovations in the palm oil industry and promote
these innovations.
Break the link between palm oil and deforestation, and
human, land and labour rights violations.
© 2016 Musim Mas Holdings Pte. Ltd. Co.
© 2015 Musim Mas Holdings Pte. Ltd. Co.
Environmental
Initiatives
Partnerships with NGOs
Elephant Flying Squad Project
Tiger Conservation Project
Orangutan Information Centre & Sumatran Orangutan Society: Orangutan Conservation Project
Orangutan Foundation - Repatriation of orangutan from Thailand to Kalimantan - Release of orangutan project
Rhino Translocation Project
© 2016 Musim Mas Holdings Pte. Ltd. Co.
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Reduce Greenhouse Gas Emissions
Within own operations
Estate Mill
Refinery Processing
Plants
• No development on primary
forest, HCV and HCS forest
• No new development on peatland
• Zero burning
• Trucks powered by biofuel
• Use biomass as energy feedstock
• Capture methane gas from mill
effluent (all mills)
• Net positive energy balance
• Use biomass as energy feedstock • Use biomass as energy feedstock
• Some of the processing plants
are 100% powered by biomass
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Methane Capture Projects
Musim Mas is the first major plantation group with this facility for all
its mills:
• Effluent account for 80% of mill operation’s total emission
• To reduce GHG emission, methane capture system can be installed
but requires substantial capital expenditure.
• With methane capture, mill operation’s emission will be reduced from
65% to 30% of total emission.
• Musim Mas has invested about USD 35 million to equip all its
plantations’ mills with methane capture system.
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Zero Discharge Mill
Solid Liquid Gaseous
• Press cake
fibre, empty fruit
bunch fibre and
kernel shells
used as fuel
• Decanter solid
used as fertiliser
• Palm oil mill effluent
undergoes anaerobic
digestion to produce
methane gas
• Palm oil mill effluent
use as organic
fertiliser in plantation
• Boiler chimney
discharge to the
atmosphere is
smoke-free
• Methane gas is
captured as
biogas to power
the housing
complex
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Research Collaboration with Universities
• Biodiversity management in oil palm - Princeton University, USA
( Biodiversity Research Project )
• Social impact and management in oil palm - Helsinki University, UNRI, IPB
• High conservation values management in oil palm - Oxford University, UK
• Minimising social environmental impacts - Collaboration with ETH Zurich
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Social Initiatives
Indonesia Palm Oil Development for Smallholders
© 2016 Musim Mas Holdings Pte. Ltd. Co.
t Indonesia Palm Oil Development for Smallholders Project
Piloted between Musim Mas and the International Finance
Corporation in Rantau Prapat, North Sumatra to help Independent
Smallholders with:
•Enhancing sustainability through adopting good agricultural practices.
•Bettering livelihoods through increasing oil palm yields
•Improving access to markets through attaining certification
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Free primary education for all of the workers’
children
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Tertiary Education
Multi-purpose building, Faculty of
Economics,
University of North Sumatra, Medan,
North Sumatra
Musim Mas Professorship in Sustainability Program
National University of Singapore, Singapore
Auditorium, Bogor Agricultural
University, Bogor, West Java Province
Library, Tanri Abeng University (TAU)
South Jakarta
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Smallholder Initiatives (Voluntary)
Smallholders Oil Palm
Development Programs
(Scheme Smallholders)
Riau South Sumatra Riau West
Sumatra
Central Kalimantan
833 families 762 families 5 villages
Central Kalimantan West Sumatra Riau
1 village 6 villages
Village Oil Palm
Development Program (Village Development Program)
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Conclusion
• Musim Mas has about 12% global palm oil market share.
• The Group is committed to sustainability and to conduct its business in an
environmentally appropriate, socially responsible and economically viable
manner.
• The Group believes that the Roundtable on Sustainable Palm Oil (RSPO) is the
best way to push the sustainability agenda. It is also committed to ISCC and
ISPO.
• Musim Mas will continue to engage stakeholders to incorporate their feedback
into the sustainability strategy.
© 2016 Musim Mas Holdings Pte. Ltd. Co.
Thank You