palm oil globally

7/30/2019 Palm Oil Globally

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ACTIVITIES

AND

FINANCIAL STATEMENTS

December 2011ber 2011


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Summary

1. Key drivers of the supply and demand in agriculture

2. Palm oil in the global picture

3. Sipef


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1. Key drivers

Source: UN Department of Economic and Social Affairs/Population Division

Worldpopulationisontherise


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1. Key divers

Increase in purchasing power and food patterns


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1. Key drivers

Source :Oil World data base March 2009

Per capita consumption of oils and fats


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1. Key drivers

Evolution arable land

Source: De Tijd, Dossier: De economie van de honger


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Source: http://maps.grida.no/go/graphic/areas-of-physical-and-economic -water-scarcity

Water balances

1. Key drivers


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1. Key drivers

Fertilisers

- Nitrogen :

- available in nature

- can be made (cost element)

- Phosphates :

- ample reserves for 369 years at current consumption- 75% of reserves are in Marocco and Western Sahara

- No substitudescannot be made

- Kalium (Potash) :

- Reserves for >50 years at current consumption

- Russia/Belarus and Canada control 89% of reserves

- No substitudescannot be made

Source: US Geological Survey 2010


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1. Key drivers

Biofuels : Daily crude mineral oil, soya and palm oil prices

Source: Oil World data base December 2009


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1. Key drivers

Contribution of the individual Oils and fats

Source :Oil World , January 27, 2012


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1. Key drivers

Summary of the key drivers in agriculture

- Explosion of world population in Far East and Africa

- Increasing standard of living = increased meat/fat consumption

- Limited land resources

- Reduced water supply in the medium term

- Limited fertiliser sources for Potash and Phosphates

- Biofuels and sustainability put additional pressure

We need increased productivity to feed the world.


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Summary



3. Sipef


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2. Palm oil

Average yields of oil per hectare per annum (late 1990s)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Palm

(Malaysia)

Palm

(Indonesia)

Soy (USA) Soy (Brazil) Soy

(Argentina)

Sun

(Argentina)

Canola

(Canada)

Ton

nesofoilrecoveredperhectareperannum.

Source: LMC International Ltd, 2002


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2. Palm oil

Source: LMC International Ltd, 2002


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2. Palm oil

Asking Price in Bulk

Source :Oil World: September 31, 2011


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17 oils & fats: world exports (in Mn T)

Source: Oil World data base December 2009

2. Palm oil


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2. Palm oil

17 oils & fats: world consumption by commodity (in Mn T)

Source: Oil World database March 2009


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Drivers of increasing palm oil consumption

Source: Oil World 2020.2002 issue, The Economist Intelligence Unit

2. Palm oil


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The price explosion

Source: Oil World, presentation June 2008: Globaloutlook of oilseeds and products for the next 10 years

2. Palm oil


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Summary



3. Sipef


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A Belgian agro-industrial company listed on the Brussels Euronext

The company mainly holds majority stakes in tropical businesses, which it

manages and operates

The group is geographically diversified and produces a number of

different commodities, principally palm oil

Its investments are largely long-term ventures in developing countries

3. Company profile


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December 2011 planted hectares summary

Palm Rubber Tea Bananas Other Total

Indonesia 41 488 6 212 1 776 49 476

PNG 10 670 3 283 13 953

Ivory coast 516 134 650

52 158 9 495 1 776 516 134 64 079

3. Activities


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3. PricesAverage palm oil price 1992 - 2011


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3. PricesAverage rubber price 1992 - 2011


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3. Financial statements December 2011Operating result by product

'000 USD % '000 USD %

Palm 108 300 79,1% 89 786 76,2%

Rubber 22 534 16,5% 19 492 16,6%Tea 1 963 1,4% 3 584 3,0%

Bananas 1 753 1,3% 2 913 2,5%

Corporate and othe 2 258 1,7% 1 907 1,6%

136 808 100% 117 682 100%

SG&A - 24 936 - 19 758Other operating 2 218 - 2 299

114 090 95 625

Effect IAS 41 15 238 22 586

129 328 118 211

dec-11 dec-10


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3. Financial statements December 2011Operating result by region

'000 USD % '000 USD %

Indonesia 89 034 65,1% 78 460 66,7%

Papua New Guinea 44 415 32,5% 34 830 29,6%Ivory Coast 1 745 1,3% 2 913 2,5%

Europe 1 548 1,1% 1 447 1,2%

Other 66 0,0% 32 0,0%

136 808 100,0% 117 682 100,0%

SG&A - 24 936 - 19 758

Other operating 2 218 - 2 299114 090 95 625

Effect IAS 41 15 238 22 586

129 328 118 211

dec-11 dec-10


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3. Financial statements December 2011Income statement

In '000 USD dec-11 dec-10

Before Before

IAS 41 IAS 41 IFRS IAS 41 IAS 41 IFRS

Operating result 114 090 15 238 129 328 95 625 22 586 118 211Financial income/(charges) - 24 - 24 - 154 - 154

Exchange result 2 583 2 583 440 440

Result before tax 116 649 15 238 131 887 95 911 22 586 118 497

Tax - 26 573 - 3 951 - 30 524 - 23 048 - 6 041 - 29 089

Result after tax 90 076 11 287 101 363 72 863 16 545 89 408

Equity method - Insurance 210 210 2 587 2 587

Result continuing operations 90 286 11 287 101 573 75 450 16 545 91 995Result discontinued operations 0 0 0 0 0 0

Consolidated result 90 286 11 287 101 573 75 450 16 545 91 995

Attributable to:

Equity holders of the parent 84 681 10 407 95 088 70 631 14 212 84 843


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3. Financial statements December 2011Condensed balance sheet


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3. ExpansionStrategy

Focus on core-business

- PalmoilRubberBananasTea

- IndonesiaPapua New Guinea

Focus on Sustainable Agriculture (RSPO)

Expansion of existing activities

Acquisition of new investments

Further sale of non-core assets


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3. ExpansionEvolution planted area (in hectares)

Oil palms Rubber Total Oil palms Rubber Total

2011 Indonesia 41 488 6 212 47 700 29 364 5 004 34 368

PNG 10 670 3 283 13 953 10 670 3 283 13 953

Total 52 158 9 495 61 653 40 034 8 287 48 321

2010 Indonesia 41 053 6 004 47 057 26 983 4 370 31 353

PNG 9 827 3 283 13 110 9 827 3 283 13 110

Total 50 880 9 287 60 167 36 810 7 653 44 463

2009 Indonesia 39 595 6 269 45 864 24 824 4 382 29 206PNG 9 605 3 283 12 888 9 605 3 283 12 888

Total 49 200 9 552 58 752 34 429 7 665 42 094

2008 Indonesia 37 297 6 463 43 760 23 299 4 454 27 753

PNG 9 333 3 115 12 448 9 333 3 115 12 448

Total 46 630 9 578 56 208 32 632 7 569 40 201

Consolidated companies Share of the group


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3. Expansion

Indonesia: beneficial interest from 34 400 Ha to 70 000 Ha

- Future expansion of 22 000 Ha Musi Rawas

- Further increase participating interests in existing subsidiaries

-Both in oil palm and rubber

PNG : beneficial interest from 13 900 to 24 600 Ha

-Finalise expansion with an additional 10 700 Ha

- Further expansion in oil palm

- In the area where we are operating


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Questions?

palm oil globally

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