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MarketScreener Homepage  >  Equities  >  Euronext Bruxelles  >  SIPEF    SIP   BE0003898187

SIPEF

(SIP)
  Report
Delayed Quote. Delayed Euronext Bruxelles - 10/23 11:29:47 am
44.7 EUR   +0.68%
10/22SIPEF : Interim statement of the Sipef group (9m/2020) ( EN NL )
PU
10/22SIPEF : Group production September 2020 ( EN )
PU
08/13ANALYST PRESENTATION : half-year results 2020 ( EN )
PU
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Analyst presentation: half-year results 2020 ( EN )

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08/13/2020 | 12:13pm EDT

SIPEF

Analyst presentation

August 13, 2020

The Connection to the world of Sustainable Tropical Agriculture

1

Summary

SIPEF group - Company profile

SIPEF group - Palm oil in the world

SIPEF group - Update expansion

SIPEF group - Production & prices

SIPEF group - Financial performance

SIPEF group - Peer review

The Connection to the world of Sustainable Tropical Agriculture

2

SIPEF group - Company profile

Agriculture

Tropical

Sustainable

Connection

  • 1st segment of the supply chain - commodities
  • Recent industrialised countries
  • Audited certifications
  • Publicly quoted

The Connection to the world of Sustainable Tropical Agriculture

3

SIPEF group - Company profile

Continuous production

Diversified in product

Diversified in origin

  • Continuous crops
  • Palm oil : basic commodity for food (and recently energy)
  • Rubber : cyclic business - tire industry
  • Indonesia : leading producing country within Asian market
  • PNG : export oriented with strong agronomical basics

The Connection to the world of Sustainable Tropical Agriculture

4

SIPEF group - Company profile

Worldwide

The Connection to the world of Sustainable Tropical Agriculture

5

SIPEF group - Company profile

Indonesia

6

SIPEF group - Company profile

Papua New Guinea

The Connection to the world of Sustainable Tropical Agriculture

7

SIPEF group - Company profile

Planted hectares summary 100% - 30 June 2020

2020

Indonesia

PNG

Ivory Coast Hectares 100%

% of total

Group share

% of total

Palm

61 038

13 628

0

74 666

90%

69 151

90%

Rubber

5 518

0

0

5 518

7%

4 980

7%

Tea

1 786

0

0

1 786

2%

1 612

2%

Bananas

0

0

794

794

1%

794

1%

Other

0

0

31

31

0%

31

0%

Total planted

68 343

13 628

825

82 795

100%

76 568

92%

% of total

83%

16%

1%

Group share

62 115

13 628

825

8

The Connection to the world of Sustainable Tropical Agriculture

Summary

SIPEF group - Company profile

SIPEF group - Palm oil in the world

SIPEF group - Update expansion

SIPEF group - Production & prices

SIPEF group - Financial performance

SIPEF Group - Peer review

The Connection to the world of Sustainable Tropical Agriculture

9

SIPEF group - Palm oil in the world

Palm oil in the world - Population growth

  • In the coming 40 years, mankind will have to produce more food than in the previous 10 000 years put together
  • Population growth will have a huge impact on future food demands
  • Rising middle class is causing diet changes in developing countries
  • Agricultural land is increasingly becoming scarcer

The Connection to the world of Sustainable Tropical Agriculture

10

SIPEF group - Palm oil in the world

Oil and fat consumption

Oil and fat consumption per capita (in Kg)

Source: Oilworld

80

72,58

70 67,32

59,43

60

55,77

54,95

50

+55%

49,47

39,05

40

35,54

30

27,55

29,93

26,07

25,86

25,52

21,46

20

18,29

15,57

15,15 14,04

10

0

EU-28

USA

China

India

Indonesia

Pakistan

Nigeria

Brazil

World

2018

2012

11

SIPEF group - Palm oil in the world

Palm oil in the world - Land input

  • Increased demand for meat/fat/processed foods
  • Increased demand for biofuel
  • Decreasing Agricultural land per capita
  • Disposable income growth in developing countries

The Connection to the world of Sustainable Tropical Agriculture

12

SIPEF group - Palm oil in the world

Palm oil in the world - Comparison to other oils

Resources used per vegetable oil:

The Connection to the world of Sustainable Tropical Agriculture

13

SIPEF group - Palm oil in the world

Palm oil in the world - Vegetable oils

2019 : 234,7 million Ton

Others

19%

Palm kernel and coconut

oil 5%

Sunflower oil

9%

Rapeseed oil

11%

Palm oil

Soybean oil

Rapeseed oil

Sunflower oil

Palm oil

32%

Soybean oil

24%

Source: Oilworld

1994/95: 93,1 million tonnes

Palm oil

16%

Other oils/animal

fats

37%

Soya oil

21%

Palm kernel and

Rape oil

coconut oil

Sunflower oil

11%

6%

9%

Palm oil

Soya oil

Rape oil

Sunflower oil

Palm kernel and coconut oil

Other oils/animal fats

14

SIPEF group - Palm oil in the world

Palm oil in the world - Palm oil production

2019 Palm oil production Total of 75,6 Mn tonnes

Middle & South America

4%

Africa

2%

Thailand

4%

Malaysia

26%

Source: Oilworld

Other countries

7%

Indonesia

57%

Indonesia

Malaysia

Thailand

Africa

Middle & South America

Other countries

15

SIPEF group - Palm oil in the world

Palm oil in the world - Sustainability

  • Palm oil remains confronted with a European perception problem based on
    • Health issues
      • No fat <-> moderate use of saturated fat
      • Saturated fats - only 50% saturated and no transfats
    • Environmental issues
      • Deforestation - most efficient vegetable oil/hectare of land
      • Sustainable Development Goals - Palm Oil covers the majority of it!

The Connection to the world of Sustainable Tropical Agriculture

16

SIPEF group - Palm oil in the world

Palm oil in the world - Sources for deforestation

The Connection to the world of Sustainable Tropical Agriculture

17

SIPEF group - Palm oil in the world

Palm oil in the world - Commodity commitment

18

SIPEF group - Palm oil in the world

Palm oil in the world - Global land use

19

SIPEF group - Palm oil in the world

Palm oil in the world - Land use of foods per 1000 kcal

20

SIPEF group - Palm oil in the world

Palm oil in the world - Sustainable palm oil

3,05 Million Ha RSPO certified production area

RSPO Certified Ha (in KHa)

  1. 500
  1. 000
  1. 500
  1. 000
  1. 500
  1. 000
    500
    0

The Connection to the world of Sustainable Tropical Agriculture

21

SIPEF group - Palm oil in the world

Palm oil in the world - Biodiesel use of major feedstock (Mn T)

Biodiesel use of major feedstock (Mn T)

50,00

45,00

40,00

10,16

9,46

35,00

8,26

6,52

30,00

7,62

5,93

6,69

25,00

5,50

6,35

6,94

4,57

6,84

7,21

3,67

20,00

6,96

17,62

6,30

14,61

2,71

6,20

6,23

15,00

2,55

10,76

11,47

1,82

6,38

10,16

8,62

9,06

5,89

6,97

10,00

5,30

5,02

1,43

4,12

3,47

4,08

2,16

10,74

11,39

5,00

7,37

6,85

7,07

8,06

7,64

9,19

9,78

1,22

4,32

4,34

5,34

2,80

0,00

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Soya oil

Palm oil

Rape oil

Other oils

The Connection to the world of Sustainable Tropical Agriculture

22

SIPEF group - Palm oil in the world

Biodiesel worldwide

Biodiesel worldwide2019

Total of 45,7 Mn tonnes

11%

4%

Biodiesel worldwide2017 Total of 35,8 Mn tonnes

10%

4%

Source: Oilworld

0%

39%

6%

1%

14%

25%

Palm Oil

Soya Oil

Rapeseed Oil

Sunflower Oil

Tallow

Coconut oil

Other oils & fats

Used cooking oil

31%

7%

1%

19%

27%

Palm oil

Soya

Rapeseed oil

Sunflower oil

Tallow

Coconut oil

Other oils and fats

Used cooking oil

23

SIPEF group - Palm oil in the world

Palm oil use for biodiesel EU

2019: Palm oil use for Biodiesel

Total of 17,6 Mn tonnes

Source: Oilworld

2017 Palm oil use for Biodiesel

Total of 11,7 Mn tonnes

EU

26%

EU

36%

4,5 Mn tonnes

4,2 Mn tonnes

13,1 Mn tonnes

7,4 Mn tonnes

Non EU

64%

NON EU

74%

EU Non EU

EU NON EU

24

Summary

SIPEF group - Company profile

SIPEF group - Palm oil in the world

SIPEF group - Update expansion

SIPEF group - Production & prices

SIPEF group - Financial performance

SIPEF Group - Peer review

The Connection to the world of Sustainable Tropical Agriculture

25

SIPEF group - Expansion

Strategy & expansion

SIPEF group = 100.000 Ha planted

Focus on core-business

  • Palmoil - Rubber - Bananas - Tea
  • Indonesia - Papua New Guinea

Focus on 'Sustainable Agriculture' (RSPO)

Expansion of existing activities

Acquisition of new investments

Balanced leverage

The Connection to the world of Sustainable Tropical Agriculture

26

SIPEF group - Expansion

Increase in Ha (100%)

100.000

91 568 Ha

92 407 Ha

90.000

80 540 Ha

82 968 Ha

80.000

78 213 Ha

70.000

60.000

69 439 Ha

56 811 Ha

50.000

40.000

30.000

20.000

10.000

0

48 093 Ha

2005

2008

2016

2017

2018

2019

2023

2029

North Sum

North Sum expansion

Bengkulu

Bengkulu expansion

PNG

PNG expansion

Musi Rawas

Dendy Marker

Ivory Coast

Ivory Coast expansion

27

140.000

120.000

100.000

80.000

60.000

40.000

20.000

0

SIPEF group - Expansion

Supply base (in hectares): own ha and outgrowers ha - 100%

21.370

22.208

22.755

23.029

23.029

23.029

23.029

23.029

23.029

23.029

23.029

82.968

84.985

87.542

90.244

91.568

91.747

92.220

92.385

92.407

92.407

92.407

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

Own ha

Outside ha

The Connection to the world of Sustainable Tropical Agriculture

28

SIPEF group - Expansion

100% CPO production (including plasma and outgrowers - NO FFB)

700.000

600.000

500.000

400.000

300.000

200.000

100.000

2029

Own: 481 Kton

Outg: 92 Kton

Total: 573 Kton

0

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

Own

Outgrowers

29

Musi Rawas Projects: Area Map

The Connection to the world of Sustainable Tropical Agriculture

SIPEF group - Expansion

South Sumatra - full scope of development June 2020

Latest update

Musi rawas

Dendymarker

Total

Total Planted / Cleared

12 958

8 986

21 944

Identified

9 847

1 607

11 454

Potential development

22 805

10 594

33 399

INTI

19 004

7 813

26 817

PLASMA

3 801

2 781

6 582

The Connection to the world of Sustainable Tropical Agriculture

31

SIPEF group - Expansion

Musi Rawas - progress June 2020

MUSI RAWAS

Acquired Ha

Secured Ha

PT AKL

4.990

4.591

92%

PT ARU

3.672

2.770

75%

PT AMR

7.823

5.597

72%

Total OLD

16.485

12.958

79%

Potential Ha

18.507

89%

AMR III

33

0

0%

AMRS

217

0

0%

AKLE

143

0

0%

Total NEW

393

0

0%

Potential Ha

4.298

9%

GRAND TOTAL

16.879

12.958

77%

Potential HA

22.805

22.805

100%

% of total

74%

57%

The Connection to the world of Sustainable Tropical Agriculture

32

Crop & Processing Requirements: Based on LTBP 2020-2030.

MT FFB

South Sumatra Total Crop (Inti & Plasma): 2020-2030

AKL

ARU

AMR

DIL

1.000.000

940,000 MT FFB

900.000

800.000

700.000

600.000

500.000

400.000

300.000

200.000

100.000

0

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

195 T/Hr

DILPOM

AMRPOM

AKLPOM

Capacity

20-60

45-90

45

The Connection to the world of Sustainable Tropical Agriculture

Summary

SIPEF group - Company profile

SIPEF group - Palm oil in the world

SIPEF group - Update expansion

SIPEF group - Production & prices

SIPEF group - Financial performance

SIPEF Group - Peer review

The Connection to the world of Sustainable Tropical Agriculture

34

SIPEF group - Production & prices

Group production palm oil - June 2020

Palm Oil

June 2020

June 2019

Variance

Own

Tolan Tiga Group

31 654

31 438

0,69%

Umbul Mas Wisesa Group

17 593

18 300

-3,86%

Agro Muko Group

42 630

35 723

19,33%

South Sumatra Group

6 764

5 548

21,92%

Hargy Oil Palms

32 253

37 069

-12,99%

Total own

130 894

128 078

2,20%

Outgrowers

Tolan Tiga Group

158

0

-

Umbul Mas Wisesa Group

76

61

24,59%

Agro Muko Group

1 940

1 496

29,68%

South Sumatra Group

689

389

77,12%

Hargy Oil Palms

28 611

23 672

20,86%

Total outgrowers

31 474

25 618

22,86%

Total Palm Oil

162 368

153 696

5,64%

35

SIPEF group - Production & prices

Group production rubber - June 2020

Rubber

June 2020

June 2019

Variance

Own

Tolan Tiga Group

270

384

-29,69%

Melania

1 583

1 617

-2,10%

Agro Muko

934

1 067

-12,46%

Total own

2 787

3 068

-9,16%

Outgrowers

Tolan Tiga Group

259

296

-12,50%

Total Rubber

3 046

3 364

-9,45%

The Connection to the world of Sustainable Tropical Agriculture

36

SIPEF group - Production & prices

Group production tea & bananas - June 2020

Tea

June 2020

June 2019

Variance

Melania

1 478

1 312

12,65%

Total Tea

1 478

1 312

12,65%

Bananas

June 2020

June 2019

Variance

Azaguie 1

2 670

2 505

6,59%

Azaguie 2

4 327

4 311

0,37%

Agboville

4 552

4 804

-5,25%

Motobe

4 620

5 108

-9,55%

Total Bananas

16 169

16 728

-3,34%

The Connection to the world of Sustainable Tropical Agriculture

37

SIPEF group - Production & prices

Bull & Bear

Rating

Bullish inputs

Bearish inputs

Palm Oil

Neutral

-

Indo & Mal prod is slightly lower than expected. Our BBC shows

-

Covid - 19: turned the global economy in a never foreseen recession. Impact not

a flat production instead of the seasonal increase.

felt to the full extent.

Aug 685

-

July and Aug prod will show the trend.

-

Still a lot of uncertainty how Covid-19 will impact in the next 12 months…..

Sept 685

-

Demand, particular food, has been very strong to replenish low

-

Permanent demand loss due to lockdown in March/May period…estimated to be 2

Oct 665

destination stocks. Triggering lower stocks and inverted

to 3 mln mt.

markets.

-

B30 program under serious financial constraints….the CPO Fund will run out of

ND 660

-

EU biodiesel demand better than expected due to high

money in Q4 at current POGO spread. Or will the Indo government find an

JFM 665

rapeseed oil prices. Also Brasil B12 program seems to be still

alternative manner to finance the biodiesel program (big risk to see an increase in

AMJ 670

running.

export levy if price rise).

-

Strong soybeans & soybean oil exports from Latam, very low

-

Fantastic US growing conditions, increasing yield, expectation of a big crop….Aug

stocks.

weather will be important how big the crop will be.

-

Weak US dollar, good for most US denominated commodities.

-

There is a still a massive divergence on the palm oil crop assessment for the next 5

-

How much will the Chinese State Reserve buy?

months…..if the big crop side is right, we will see a significant stocks build.

-

There is still a big (Chinese) speculator long position, when will they take profit?

Rubber

Neutral

-

Low price environment

-

Automobile industry hit by minimum 15% decline, based on Michelin's projection.

-

Futures rallied (but no idea why!)

Likely a bigger decline globally.

RSS3 1558

-

No physical activity as stocks at factories still filled.

SIR10 1237

Tea

Neutral

-

Low price environment

-

Kenyan prod still good and a lot of auction volume left unsold

-

Pakistan also suffering from Corona lockdown

SIPEF group - Production & prices

CPO prices CIF Rotterdam 2019-2020

Crude Palm Oil in $/mt

Source: Oilworld

850

CIF Rotterdam

800

750

700

650

600

550

500

450

J

F

M

A

M

J

J

A

S

O

N

D

2019

2020

SIPEF group - Production & prices

Spread crude palm oil - soybean oil

Spread CPO - Soybean oil

Source: Worldbank

1600

1400

1200

1000

800

600

400

2010M01

2010M03

2010M05

2010M07

2010M09

2010M11

2011M01

2011M03

2011M05

2011M07

2011M09

2011M11

2012M01

2012M03

2012M05

2012M07

2012M09

2012M11

2013M01

2013M03

2013M05

2013M07

2013M09

2013M11

2014M01

2014M03

2014M05

2014M07

2014M09

2014M11

2015M01

2015M03

2015M05

2015M07

2015M09

2015M11

2016M01

2016M03

2016M05

2016M07

2016M09

2016M11

2017M01

2017M03

2017M05

2017M07

2017M09

2017M11

2018M01

2018M03

2018M05

2018M07

2018M09

2018M11

2019M01

2019M03

2019M05

2019M07

2019M09

2019M11

2020M01

2020M03

2020M05

2020M07

CPO

Soybean oil

40

SIPEF group - Production & prices

Rubber prices CIF Rotterdam 2019-2020

RSS3 in $/mt

Source: Worldbank

2 000

FOB Singapore

1 900

1 800

1 700

1 600

1 500

1 400

1 300

1 200

J

F

M

A

M

J

J

A

S

O

N

D

2019

2020

41

Markets, sales prices & productions

Tea prices CIF Rotterdam 2019-2020

Tea in $/mt

Source: Worldbank

average auction Mombasa

2 650

2 550

2 450

2 350

2 250

2 150

2 050

1 950

1 850

1 750

J

F

M

A

M

J

J

A

S

O

N

D

2019

2020

42

Summary

SIPEF group - Company profile

SIPEF group - Palm oil in the world

SIPEF group - Update expansion

SIPEF group - Production & prices

SIPEF group - Financial performance

SIPEF Group - Peer review

The Connection to the world of Sustainable Tropical Agriculture

43

SIPEF group - Financial performance

Sales - consolidated gross margin

120 000

100 000

  1. 000
  1. 000
  1. 000

100 229

93 847

19,8%

20 000

13,6%

11 443

10 943

4 938

3 116

2 247

2 922

15,8%

16,9%

--7,1%

-48,1%

-24,7%

-17,8%

0

Palm

Rubber

Tea

Bananas

-20 000

2019 Sales

2019 Gross Margin

2020 Sales

2020 Gross Margin

44

SIPEF group - Financial performance

Gross margin - Results before tax (management presentation)

In KUSD (condensed)

June 2020

June 2019

%change

Gross margin per product

Palm

19 823

12

748

7 075

Rubber

-1 498

- 350

-1 148

Tea

- 519

- 555

36

Bananas and flowers

1 844

1 806

38

Total gross margin

19 650

13 649

6 001

Net general & administrative expenses

-15 142

-15 929

787

Other operating income/(charges)

113

203

- 90

Financial

income/(charges)

-2 247

-2 016

- 231

Discounting Sipef-CI

613

845

- 232

Exchange differences

- 519

- 478

- 41

Profit before tax

2 468

-3 725

6 193

The Connection to the world of Sustainable Tropical Agriculture

45

SIPEF group - Financial performance

Net profit after tax (management presentation)

In KUSD (condensed)

June 2020

June 2019

%change

Profit before tax

2

468

-3 725

6 193

Tax expense

-1

686

- 412

-1 274

Effective tax rate

-68,3%

11,1%

-79,4%

Result after tax

782

-4 137

4 919

Share of associated companies

- 578

- 883

305

Profit after tax

204

-5 020

5 224

The Connection to the world of Sustainable Tropical Agriculture

46

SIPEF group - Financial performance

Consolidated balance sheet (management presentation)

In KUSD (management presentation)

30/06/2020

31/12/2019

Biological assets (depreciated costs) - bearer plants

310 134

306 342

Goodwill

104 782

104 782

Other fixed assets

361 497

365 412

Receivables > 1 year

15 055

13 442

Net current assets, net of cash

89 385

94 013

Net cash position

-165 569

-164 623

Total net assets

715 284

719 368

Shareholders' equity, group share

625 786

628 686

Non controlling interest

35 240

34 325

Provisions and deferred tax liabilities

54 258

56 358

Total net liabilities

715 284

719 368

47

SIPEF group - Financial performance

Inventory overview

CPO inventory overview

50.000

45.000

40.000

35.000

of CPO

30.000

25.000

Tons

20.000

15.000

10.000

5.000

0

1

2

3

4

5

6

7

8

9

10

11

12

2019

2020

The Connection to the world of Sustainable Tropical Agriculture

48

SIPEF group - Financial performance

Covenant testing

Net debt (IFRS definition) June 2020

-165 569

7-12m19

1-6m20

12m period

Operating result

7 018

4 621

11 639

Exceptional items

0

0

0

Recurring operating result

7 018

4 621

11 639

Depreciation

22 583

21 371

43 954

REBITDA

29 601

25 992

55 593

Minus minorities recurring

-416

-916

-1 332

REBITDA group share

29 185

25 076

54 261

Net Senior Leverage

3,0513

  • Financial covenant per 30/06/2020 = 3,25x OK!

The Connection to the world of Sustainable Tropical Agriculture

49

SIPEF group - Financial performance

Cash flow (management presentation)

Cash flow in KUSD

June 2020

Cash flow from operations before working capital

26 416

Working capital movements

160

Taxes paid

-3 821

Cash flow from operations (a)

22 755

Cash flow from investing

-21 948

Cash flow from desinvesting

1 344

Cash flow from investing in VBS

-1 609

Cash flow from sales Sipef CI

1 371

Investing activities (b)

-20 842

Free cash flow (a+b)

1 913

The Connection to the world of Sustainable Tropical Agriculture

50

SIPEF group - Financial performance

Cash flow (management presentation)

Cash flow in KUSD (continued)

June 2020

Free cash flow (a+b)

1 913

Dividends paid by subsidiaries to minorities

-516

Interest received/paid

-2 343

Net increase/decrease in NFP

-946

Net financial position in KUSD

June 2020

NFP opening position

- 164 623

Net increase/decrease in cash

-946

NFP closing position

-165 569

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SIPEF group - Financial performance

Value per hectare

Sensitivity 30/06/2020

Stock price @

USD per hectare

30,00

5 796

40,00

7 289

50,00

8 781

60,00

10 274

70,00

11 767

80,00

13 259

46,50 (dd 11/08/2020)

8 259

52

SIPEF group - Financial performance

Prospects

  • Production
    • Prospects for palm oil production for the third quarter are rather poor (likely affected by last year's long drought);
    • The previously announced 10% increase in annual volumes will probably not be achieved;
    • The Pestalotiopsis fungus is expected to continue to affect rubber activities negatively in the second half;
    • Expectations for tea and banana production for second half of the year remain slightly positive.
  • Markets
    • General production prediction in Indonesia is rather poor which triggered significant stock reductions in palm oil supported rally in palm oil price in June/July;
    • How will B30 biodiesel blending program evolve in coming months?
    • Rubber very dependent on automobile industry which is highly effected by the pandemic;
    • Tea production is declining seasonally which should move prices up moderately.

53

SIPEF group - Financial performance

Prospects

  • Cash flow and expansion
    • Investment policy remains to be fully focused on development of palm oil activities in South Sumatra;
    • Steadily continuing on replanting of own palm plantation areas in Dendymarker;
    • Group remains faithful to its intention to renew the old Dendymarker plantings and to develop Musi Rawas concessions despite the uncertainties that covid-19 brings;
    • Due to the persistently low prices for natural rubber and the lack of prospects for the future, specific measures are also being worked out for a restructuring of the rubber activities in the SIPEF group
  • Result
    • 76% of expected production volumes have been sold at an average price of USD 692 CIF Rotterdam, premiums included. Production volumes gradually brought onto the market;
    • Considering the already realized sales of palm oil and based on the recent market prices, the Group expects a return to a recurring profit position for the year 2020

54

Summary

SIPEF group - Company profile

SIPEF group - Palm oil in the world

SIPEF group - Update expansion

SIPEF group - Production & prices

SIPEF group - Financial performance

SIPEF Group - Peer review

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Peer review

Disclaimer

The information contained in this section is provided for your general information only and is not designed nor intended to offer anything more than information only.

The information with respect to the companies included in the Peer Review was retrieved from publicly available information being annual reports and company websites on the one hand and from analyst reports we received on the other hand. In some cases we had to give our own interpretation to the available information in order to get comparable indicators.

As a consequence of using different sources combined with giving our own interpretation to the available information, the information may not always be correct and SIPEF does not accept any liability for loss and damage that may arise from relying upon this information.

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56

Peer review

Principle assumptions

  • Benchmark of main industrial competitors
  • Age profile based on own ageing interpretation
  • Market capitalization is calculated based on the average exchange rate & average share price of the year
  • Benchmark based on own CPO productions of competitors:

Tons

CPO own production benchmark (2018)

11.605.720

Worldwide production (Oilworld 2018)

72.875.000

  • Representative sample of comparable industry competitors (2018): 31,9%
    • Industrial comparable companies (50%)

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Peer review

Own planted Oil Palm Hectares in KHa (2018)

Sime Darby

Golden Agri-Resources

Felda Global Ventures

Salim Ivomas Pratama

Wilmar International

Astra Agro Lestari

Kuala Lumpur Kepong

First Resources

IOI Corporation

Genting Plantations

Bumitama

Eagle High Plantations

London Sumatra Indon

Socfinaf

Sampoerna Agro

SIPEF Anglo Eastern Plantations

Socfinasia

MP Evans

R.E.A. Holdings

251

230

218

214

180

174

144

132

126

96

91

84

72

66

39

39

37

600

394

339

Plantation

Integrated

Sipef

2017

2018

Var %

Total

3.546

3.528

-0,5%

Sipef

69,30

71,50

3,2%

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Peer review

Age Profile: Average age planted hectares (2018)

Golden Agri-Resources

London Sumatra Indon

Astra Agro Lestari

Salim Ivomas Pratama

Socfinasia

Felda Global Ventures

IOI Corporation

R.E.A. Holdings

Sime Darby

Kuala Lumpur Kepong

Socfinaf

Wilmar International

Sampoerna Agro

First Resources

Genting Plantations

Anglo Eastern Plantations

SIPEF

Bumitama

Eagle High Plantations

MP Evans

16,0

16,0

15,3

15,0

14,5

14,3

14,0

13,8

12,8

12,1

11,7

11,0

11,0

11,0

10,7

10,5

10,3

9,8

9,4

7,0

Plantation

Integrated

Sipef

2017 2018 Var %

Average 11,97 12,31 2,9%

Sipef

10,26

10,32

0,6%

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Peer review

FFB Yield - MT/ha (2018)

Socfinasia

IOI Corporation

R.E.A. Holdings

Golden Agri-Resources

SIPEF

Astra Agro Lestari

Kuala Lumpur Kepong

Wilmar International

Sime Darby

Bumitama

MP Evans

First Resources

Anglo Eastern Plantations

Genting Plantations

London Sumatra Indon

Felda Global Ventures

24,4

23,6

23,1

22,5

22,2

21,8

21,6

21,6

20,5

20,4

19,3

18,9

18,6

18,2

17,4

16,9

Plantation

Integrated

Sipef

Salim Ivomas Pratama

Sampoerna Agro

Socfinaf

Eagle High Plantations

15,9

15,0

2017

2018

Var %

14,9

Average

17,8

19,5

9,2%

12,3

Sipef

23,9

22,2

-6,9%

Sipef including the South Sumatra Group as of 2018

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Peer review

Extraction rate from FFB to CPO (2018)

MP Evans

SIPEF

London Sumatra Indon

Socfinasia

Eagle High Plantations

First Resources

R.E.A. Holdings

Bumitama

Socfinaf

Salim Ivomas Pratama

Golden Agri-Resources

Kuala Lumpur Kepong

Sampoerna Agro

Genting Plantations

Sime Darby

IOI Corporation

Anglo Eastern Plantations

Felda Global Ventures

Astra Agro Lestari

Wilmar International

23,5%

23,4%

23,0%

22,9%

22,9%

22,9%

22,5%

22,1%

Plantation

22,0%

22,0%

Integrated

21,9%

21,8%

21,3%

Sipef

21,3%

21,0%

20,9%

20,7%

2017

2018

Var %

20,5%

Average

21,9%

21,8%

-0,4%

20,3%

Sipef

23,4%

23,4%

-0,2%

20,0%

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Peer review

CPO Yield - MT/ha (2018)

Socfinasia

R.E.A. Holdings

SIPEF

IOI Corporation

Golden Agri-Resources

Kuala Lumpur Kepong

MP Evans

Bumitama

Astra Agro Lestari

First Resources

Wilmar International

Sime Darby

London Sumatra Indon

Genting Plantations

Anglo Eastern Plantations

Salim Ivomas Pratama

Felda Global Ventures

Socfinaf

Sampoerna Agro

Eagle High Plantations

5,59

5,40

5,19

4,93

4,93

4,72

4,54

4,51

Plantation

4,40

4,33

Integrated

4,32

4,31

4,00

Sipef

3,88

3,84

3,51

3,46

3,29

2017

2018

Var %

3,20

Average

3,91

4,26

8,9%

Sipef

5,58

5,19

-7,0%

2,82

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Peer review

Market Cap in MUSD (2018)

Wilmar International

Sime Darby

IOI Corporation

Kuala Lumpur Kepong

Golden Agri-Resources

First Resources

Genting Plantations

Astra Agro Lestari

Felda Global Ventures

Bumitama

SIPEF

London Sumatra Indon

Salim Ivomas Pratama

MP Evans

Eagle High Plantations

Anglo Eastern Plantations

Sampoerna Agro

Socfinasia

Socfinaf

R.E.A. Holdings

2.872

1.947

1.929

1.676

1.415

883

705

591

558

538

448

363

306

381

294

163

14.804

9.081

7.060

6.594

Plantation

Integrated

Sipef

2017

2018

Var %

Total

2.765

2.630

-4,9%

Sipef

750

705

-6,0%

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Peer review

Dividend Yields (based on average market cap 2018)

Socfinasia

IOI Corporation

Bumitama

Wilmar International

Sime Darby

Sampoerna Agro

Astra Agro Lestari

Golden Agri-Resources

First Resources

Kuala Lumpur Kepong

MP Evans

London Sumatra Indon

Genting Plantations

SIPEF

Socfinaf

Anglo Eastern Plantations

Felda Global Ventures

Salim Ivomas Pratama0,0%

R.E.A. Holdings0,0%

Eagle High Plantations0,0%

2,0%

1,8%

1,8%

1,5%

1,3%

1,0%

0,7%

0,4%

5,5%

4,5%

4,0%

3,3%

3,2%

2,9%

2,7%

2,6%

Plantation

Integrated

Sipef

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Peer review

Price Earning Ratio (based on average market cap 2018)

Socfinaf

Genting Plantations

Kuala Lumpur Kepong

Anglo Eastern Plantations

SIPEF

London Sumatra Indon

Sime Darby

Astra Agro Lestari

First Resources

Wilmar International

Socfinasia

Bumitama

IOI Corporation

MP Evans * 0,0 Sampoerna Agro * 0,0

Golden Agri-Resources *

Salim Ivomas Pratama *

Felda Global Ventures * 0,0

R.E.A. Holdings * 0,0 Eagle High Plantations * 0,0

52,4

47,2

35,1

31,8

31,0

25,4

21,3

16,6

16,2

13,1

12,5

11,7

9,3

Plantation

Integrated

Sipef

* Not included as irrelevant (profit close to break-even or loss for the year)

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Peer review

Net financial position/Equity Ratio (2018)

Eagle High Plantations

Wilmar International

Socfinaf

R.E.A. Holdings

Sampoerna Agro

Golden Agri-Resources

Felda Global Ventures

Bumitama

IOI Corporation

Salim Ivomas Pratama

Genting Plantations

Sime Darby

First Resources

Kuala Lumpur Kepong

Astra Agro Lestari

SIPEF

Socfinasia

MP Evans

London Sumatra Indon* Anglo Eastern Plantations*

* Cash surplus at the end of the year

141,7%

83,7%

83,2%

72,5%

70,0%

65,4%

63,2%

54,7%

50,8%

43,9%

42,6%

37,6%

28,5%

24,4%

24,0%

17,9%

2,9%

1,5%

-20,0%

-20,0%

Plantation

Integrated

Sipef

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The Connection to the world of Sustainable Tropical Agriculture

67

Disclaimer

Sipef NV published this content on 13 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2020 16:12:06 UTC


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Sales 2020 289 M - -
Net income 2020 10,0 M - -
Net Debt 2020 155 M - -
P/E ratio 2020 45,6x
Yield 2020 0,65%
Capitalization 466 M 551 M -
EV / Sales 2020 2,15x
EV / Sales 2021 1,83x
Nbr of Employees 21 619
Free-Float 51,5%
Chart SIPEF
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Technical analysis trends SIPEF
Short TermMid-TermLong Term
TrendsNeutralNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 2
Average target price 65,86 $
Last Close Price 44,70 $
Spread / Highest target 48,6%
Spread / Average Target 47,3%
Spread / Lowest Target 46,0%
EPS Revisions
Managers
NameTitle
François van Hoydonck Managing Director & Executive Director
Luc Jacques Bertrand Chairman
Johan Nelis CFO & Investor Relations Contact
Priscilla Bracht Non-Executive Director
Jacques Delen Non-Executive Director
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