SIME DARBY PLANTATION Non-Deal Roadshow in Business Overview Integrated Plantation Company Involved

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Transcript of SIME DARBY PLANTATION Non-Deal Roadshow in Business Overview Integrated Plantation Company Involved

  • SIME DARBY PLANTATION Non-Deal Roadshow in Singapore 5 October 2018

  • Disclaimer

    2

    This document is strictly confidential to the recipient. It is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. Upon request, you shall promptly return this document all other information made available in connection with this document, without retaining any copies. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

    This document does not constitute and is not an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities of any company referred to in this document in any jurisdiction. The companies referred to herein have not registered and do not intend to register any securities under the US Securities Act of 1933, as amended (the “Securities Act”), and any securities may not be offered or sold in the United States absent registration under the Securities Act or an exemption from registration under the Securities Act. By attending the presentation you will be deemed to represent, warrant and agree that to the extent that you purchase any securities in any of the companies referred to in the presentation, you either (i) are a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act, or (ii) you will do so in an “offshore transaction” within the meaning of Regulation S under the Securities Act

    By attending this presentation and accepting a copy of this document, you represent and warrant that (i) you have read and agreed to comply with the contents of this notice; (ii) you will maintain absolute confidentiality regarding the information contained in this document including information presented orally or otherwise in accordance with your confidentiality obligation; and (iii) you are lawfully able to receive this document and attend this presentation under the laws of other jurisdiction in which you are subjected and other applicable laws.

    This document is for the purposes of information only and is not intended to form the basis of any investment decision. This presentation may contain forward- looking statements by Sime Darby Plantation that reflect management’s current expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are based on various assumptions and made subject to a number of risks, uncertainties and contingencies and accordingly, actual results, performance or achievements may differ materially and significantly from those discussed in the forward- looking statements. Such statements are not and should not be construed as a representation, warranty or undertaking as to the future performance or achievements of Sime Darby Plantation and Sime Darby Plantation assumes no obligation or responsibility to update any such statements.

    No representation or warranty, express or implied, is given by or on behalf of Sime Darby Plantation or its related corporations (including without limitation, their respective shareholders, directors, officers, employees, agents, partners, associates and advisers) (collectively, the “Parties”) as to the quality, accuracy, reliability, fairness or completeness of the information contained in this presentation or its contents or any oral or written communication in connection with the contents contained in this presentation (collectively, the “Information”), or that reasonable care has been taken in compiling or preparing the Information. None of the Parties shall be liable or responsible for any budget, forecast or forward-looking statements or other projections of any nature or any opinion which may have been expressed or otherwise contained or referred to in the Information.

    The Information is and shall remain the exclusive property of Sime Darby Plantation and nothing herein shall give, or shall be construed as giving, to any recipient(s) or party any right, title, ownership, interest, license or any other right whatsoever in or to the Information herein. The recipient(s) acknowledges and agrees that this presentation and the Information are confidential and shall be held in complete confidence by the recipient(s).

    All the images, pictures and photos including design drawings in relation to the company’s property development projects contained in this document are artist impression only and are subject to variation, modifications and substitution as may be recommended by the company’s consultants and/or relevant authorities.

  • S E C T I O N PA G E

    1 Company Overview 4

    2 Key Investment Highlights 9

    3 Business Strategies & Future Plans 22

    4 Industry Outlook 31

    5 Financial Overview 34

    6 Appendix 42

    Table of Contents

  • Company Overview

  • Business Overview Integrated Plantation Company Involved in the Entire Palm Oil Value Chain

    5

    Upstream Downstream Others

    Oil palm, rubber & sugarcane estates

     Developing, cultivating and managing oil palm, rubber and sugarcane plantation estates

    Milling of FFB and processing & sales

     Milling of FFB into CPO and PK

     Processing and sales of rubber and sugarcane

    Others

     Cattle rearing and beef production

    Bulk and refined oils & fats

     Production and sales of refined oils and fats (which includes specialty and end-user oils and fats)

    Oleochemicals, biodiesel products & derivatives

     Production and sales of oleochemicals, biodiesel products and derivatives

    R&D

     Focused on yield and productivity improvements, increasing revenue streams and developing sustainable practices while pursuing innovative strategies

    Renewables business

     Development of green technology and renewable energy which includes biogas and composting

    Agribusiness

     Provision of agriculture products and services

    Oil palm estate Mill Refinery Food application High-yielding genome seeds

    Renewables

  • Snapshot of Oil Palm Plantation Operational Statistics 6

    FY17/18 unless otherwise stated

    Malaysia Indonesia Liberia PNG &

    Solomon Islands Total

    Total oil palm planted area (ha)

    301,027 201,220 10,441 87,304 599,992

    Mature area (ha) 252,055 158,180 9,701 77,500 497,436

    Palm tree age profile & average tree age (Years)

    FFB production (mn MT/year)

    5.822 2.615 0.065 1.731 10.233

    CPO production (Total) (mn MT/year)

    1.419 0.710 0.016 0.508 2.653

    PK production (Total) (mn MT/year)

    0.357 0.160 0.003 0.130 0.650

    FFB yield (MT/ha) 23.13 16.40 6.78 22.36 20.51

    OER 20.40 21.39 20.60 22.41 21.02

    KER 5.13 4.80 3.97 5.75 5.15

    16%

    22%

    35%

    18%

    9%

    22 yrs

    21%

    12%

    19%

    38%

    10%

    12.7 yrs

    7%

    93%

    14.1 yrs

    11%

    26%

    48%

    12% 3%

    5.4 yrs 11.4 yrs

    17%

    20%

    32%

    23%

    8%

    12.8 yrs

  • Snapshot of Downstream Operations 7

    Note: Figures as at 30 June 2018

    UNITED KINGDOM New Britain Oils Ltd. (300,000 MT/year)

    NETHERLANDS Sime Darby Unimills B.V. (450,000 MT/year)

    SOUTH AFRICA Sime Darby Hudson & Knight (162,500 MT/year)

    VIETNAM Golden Hope Nha Be (99,000 MT/year)

    THAILAND Morakot Industries (379,500 MT/year) Industrial Enterprises (IE) Soya (33,000 MT/year)

    MALAYSIA Sime Darby Jomalina (429,000 MT/year)

    Nuri Refinery (660,000 MT/year)

    Sime Darby Kempas (165,000 MT/year)

    Sime Darby Austral (330,000 MT/year)

    INDONESIA PT Golden Hope Nusantara (825,000 MT/year)

    PAPUA NEW GUINEA Kumbango (140,000 MT/year)

    12 Refineries

    ~4.0 million MT Refining Capacity

    Legend

    Differentiated Food

    KEY PRODUCTS

    • Food: Palm oil products, specialty oils & fats, phytonutrients, refined PKO, vegetable ghee, shortening & dough fat, industrial margarine, cooking oil, CPKO & PK cake for animal feed, and non-dairy products

    • Non-Food: Oleochemicals (high quality fatty acids, glycerine, fatty alcohols, triacetin, methyl esters, oilfield chemicals, ozone acids) and biodiesel

    Bulk Processing

    68% Average Refinery

    Utilisation

  • Downstream – Our renowned brands and winning products are used worldwide

    8

    * SDFBM & SDEPL is the sales and marketing arm of SDP which sells B2C products manufactured by Malaysian SDP refineries & third parties

    Jomalina Nuri Kempas Austral Nusantara Morakot Nha Be Unimills Liverpool H&K Kumbango

    Bulk BulkBulk Bulk

    IE

    Bulk

    B 2

    B B

    2 C

    Vema (no logo)

    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 )

    SD Food & Beverage Malaysia (SDFBM)* & SD Edible Products Ltd (SDEPL)*

    Morakot Nha Be

  • Key Investment Highlights

  • Investment Highlights 10

    Strong Investment Proposition

    Well Positioned to Benefit from Sound Industry Fundamentals & Strong Demand Growth Trends

    The World’s Largest Oil Pa