SIPEF : 7a. Annual report 2020 - Part 1 - Company report ( EN NL )

Annual Report 2020

PART 1 - COMPANY REPORT

SIPEF is convinced that palm oil is an essential part of a balanced diet for an ever-increasing global population.

Mission

What SIPEF does

SIPEF produces certified sustainable tropical agricultural commodities, primarily crude palm oil and palm products.

Why SIPEF does it

SIPEF is convinced that palm oil, as the most productive and efficient vegetable oil, is an essential part of a balanced diet for an increasingly large and wealthy global population. The Company's goal is to be a reliable partner for its customers, suppliers, employees and other stakeholders in the production and sale of sustainable palm products, so that they in turn, can be successful.

How SIPEF creates value

Above all, SIPEF creates value by growing in a sustainable manner; investing in the quest for maximum yield per hectare; optimising waste management; creating a huge number of jobs and providing general welfare in often very remote areas for own employees and suppliers. SIPEF also pursues a regular dividend income and a rising share price by means of rigorous cost control and an increasing asset basis.

Key figures 2020

329 284 tonnes		715 USD/tonne (CIF)			62 357 KUSD
	Produced palm oil					Average world market price of palm oil					Gross profit
	TOTAL OWN PRODUCTION
	OF PALM OIL OF				AVERAGE WORLD MARKET											STOCK EXCHANGE
	CONSOLIDATED
	COMPANIES					PRICE OF PALM OIL				GROSS								CAPITALISATION
	IN TONNES•					USD/TONNE•					DIVIDEND IN EUR•					AT 31/12 IN KEUR•
246 121	272 312	290 441	264 641	271 472			700	715	598	566	715	1.25	1.60	0.55	0	0.35		541 491	664 382	516 271	579 747	457 027
2016	2017	2018	2019	2020			2016	2017	2018	2019	2020	2016	2017	2018	2019	2020		2016	2017	2018	2019	2020
																SHAREHOLDER'S
	TOTAL PLANTED				RECURRING NET					EQUITY • SHARE OF THE
	HECTARAGE					PROFIT • SHARE OF				GROUP								NET FINANCIAL
	IN HA•						THE GROUP IN KUSD•			IN KUSD•							DEBT IN KUSD•
69 438	78 213	79 787	82 225	83 893			39 874	64 481	22 713	-8 004	14 122	448 063	634 636	644 509	628 686	638 688		45 061	83 697	121 443	164 623	151 165
2016	2017	2018	2019	2020			2016	2017	2018	2019	2020	2016	2017	2018	2019	2020		2016	2017	2018	2019	2020

The connection to the world of sustainable tropical agriculture

100%	21 634	33
RSPO compliant	employees (FTE)	certificates
All the criteria for processing RSPO certified	work on the plantations and	granted to the operational
oil palm products have been met.	in related processing facilities.	units of the Group.

83 893 ha

91%

Total planted

hectares

6%

2%

1%

Oil palm (91%)

SIPEF manages more than 35 oil palm plantations, and produces palm oil and palm kernels at 6 mills in Indonesia and palm oil and palm kernel oil at 3 mills in Papua New Guinea.

Rubber (6%)

SIPEF manages 3 rubber estates and runs 1 crumb rubber factory in Indonesia, producing Standard Indonesian Rubber (SIR), as well as 2 rubber factories producing Ribbed Smoked Sheets (RSS).

Tea (2%)

SIPEF produces high quality black CTC tea on a unique estate in Indonesia, which still harvests using skilled hand plucking.

Bananas (1%)

SIPEF owns 3 plantation sites in Ivory Coast equipped with 4 packing stations, mainly exporting its bananas to the European market.

SIPEF Company Report 2020

Contents

3

Mission . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . . . . .	. . Cover. . . . . . .
Key figures 2020. . . . . . . .	. . . . . . . . . . . . . . .	. . . . . . . Cover. . . . . . . . .
SIPEF at a glance . . . . . . .	. . . . . . . . . . . . . . . .	. . . . . . . . . . .4. . . . .
Significant events in 2020 . . . . . . . . . . .	. . . . . . . . . .	. . .	. .6 . . .
Interview with the chairman and managing director . . . .	. . . . . .8 . . . .
Strategy of the Group . . .	. . . . . . . . . . . . . . . .	. . . . . . . .	. . . .24. .	. . .
Business model . . . . .	. . . . . . . . . . . .	. . . . . . . . .	. . . .29. . . .
History . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . 38. . . . .
Global trends in the palm oil market . . . .	. . . . . . . . . . . . .	. .	. .42. .	. .
Product markets . . . . . . . .	. . . . . . . . . . . . . . . .	. . . . . . . . . .	. . .52. .	. . .
Activities per country	-- Indonesia . .	. . . . . . . . . . . . . . . .58. . . . .
	-- Papua New Guinea . . . . . . . . .	. . .104. . . .
	-- Ivory Coast . .	. . . . . . . . . . . . . . . .128. . . . .
	--Europe . . . . . .	. . . . . . . . . . . . . . . 140. . . . . . .
Operational key figures .	. . . . . . . . . . . . . . . .	. . . . . . . . . . . .141. . . .
Risks and uncertainties	. . . . . . . . . . . .	. . . . . . . . . . . .	. 149. . . .
Corporate governance statement . . . .	. . . . . . . . . . .	.	. 154. . . . .
SIPEF on the stock market . . . . . . . . .	. . . . . . . . . . . . .	. .191. . . . .
Other information about the Company .	. . . . . . . . . . . . . . . .	.194. . . . . .
Glossary . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . .	. . . . . . . . . .200. . . . .
For further information	. . . . . . . . . . . . . . . .	. . . . . . . . . . . . .206. . . . . . .
Responsible persons . .	. . . . . . . . . . . . .	. . . . . . . . .	. . . 207. . . . .
Evolution of key data over 5 years . . . . .	. . . . . . . . . . . .	. .	. 210. . . . . . .