New Britain Palm Oil Ltd

Transcription

1 New Britain Palm Oil Ltd 2012

2 August 2012 Interim Results to 30 June

3 Introduction Challenging Period Profitability compared to previous period impacted by coinciding events: -- high rainfall leading to issues collecting fruit -- higher water content and therefore lower extraction rates -- appreciation of local currency -- reduction in global crude palm oil / palm kernel oil prices -- delay in sugar harvesting Previous period (6 months to June 2011) was exceptional for the Group Group s capital structure remains stable, with conservative, and long term borrowings Interim dividend remains unchanged at USD 15 / share Continued key capex programme Cost optimisation and efficiency review underway 2

4 Interim Results Six months ended 30 June FFB processed (tonnes) 1,223,179 1,295,230 CPO / PKO produced (tonnes) 291, ,166 Average CPO price achieved ($ / tonne) $1,100 $1,122 Average PKO price achieved ($ / tonne) $1,476 $2,096 Six months ended 30 June Revenue ($m) Profit before tax* ($m) Earnings per share* (US ) *Excluding IAS 41 3

5 Bridge From 2011 to 2012 Interim Period PBT $ 000s Essentially a fixed cost business, reduction in CPO volume due to weather and collection issues, had the biggest impact on PBT responsible for 34% of the reduction of PBT from 2012 to 2011 FX appreciation of the PGK increased local USD costs PKO prices dropped $620 / tonne year on year $8.9m one-off contribution from sale of PT Dami Mas in 2011 Seeds delivered 2.2m higher year-on-year sales FFB purchases from smallholders at lower prices, delivered additional $12.6m interim 2011 interim CPO vol FX impact on PGK cost PKO prices Sugar CoS Disposal of JV interest FX gains CPO prices Refined oils prices Freight costs Other palm prod. costs PK prices PKO vol FerIliser Fertiliser costs Refined oils vol Net finance costs PK vol CaKle Cattle Liverpool Seeds Sugar sales FFB purchases 2012 interim Note. Management preparation of indicative overview of variance only, not related to statutory results 4

6 Location New Britain Oils Commissioned in March 2010, the first fully segregated and traceable sustainable palm oil refinery in the UK, new bakery fats plant now operational PAPUA NEW GUINEA Lae NEW BRITAIN KPOL, Poliamba - acquired in April ,459 hectares oil palm Kimbe NEW IRELAND Main area of NBPOL operation 36,095 hectares oil palm GPPOL - acquired in April ,174 hectares oil palm c.78,000 hectares of managed oil palm plantations RAIL - acquired in Oct ,000 hectares oil palm 7,731 hectares sugar cane 8,888 hectares pasture SOLOMON ISLANDS An additional c.42,000 hectares cultivated by smallholders KPOL, Higaturu - acquired in April ,885 hectares oil palm KPOL, Milne Bay - acquired in April ,905 hectares oil palm AUSTRALIA Orangerie Bay Plantations - aquired in July 2012 c.5,351 hectares to be planted with oil palm 5

7 Balance Sheet Current Debt Position US$ 303.4m $m Long term facility - amortising Long term facility - non-amortising Short term working capital facilities RAIL US$m 2012 cash position at 30 June EBITDA (full year) EBITDA to 30 June 100 EBITDA trailing 12 months (to 30 June 2012) net debt / EBITDA 0.54x Trailing 12 month-full year net debt / EBITDA 1.3x 6

8 Performance NBPOL share price, CPO, PKO ,500 CPO CIF Rdm (US$/MT) PKO CIF Rdm (US$/MT) NBPOL share price (GBp) 1000 CPO / PKO $ / MT 2,000 1,500 1, NBPOL share price (GBp) J-06 A-06 J-06 O-06 J-07 A-07 J-07 O-07 J-08 A-08 J-08 O-08 J-09 A-09 J-09 O-09 J-10 A-10 J-10 O-10 J-11 A-11 J-11 O-11 J-12 A-12 J-12 O

9 Global Edible Vegetable Oil Market Edible oils stocks:usage ratio continues to fall......soy oil, palm oil spread relatively wide (c.$200, up from c.$10 in April 2012) Edible Oils - World Stocks:Usage Ratio (%) 11 % / / / / / / / / / / / / / / / / / / / / / / / /2013 Source: USDA 8

10 Historical Operational Indicators Hectares 85,000 80,000 75,000 70,000 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 CAGR:17.5% Growth in Oil Palm Plantations Tonnes FFB Tonnes 2,500,000 2,400,000 2,300,000 2,200,000 2,100,000 2,000,000 1,900,000 1,800,000 1,700,000 1,600,000 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000, , , , , , , , , , , , , ,000 Growth in Group Fresh Fruit Bunch (FFB) volume CAGR: 15.0% CAGR: 16.3% Growth in Palm Oil Produced 160, ,000 80,000 40,

11 Palm Oil A vegetable oil used extensively in Asian and EU food markets and personal healthcare products The most productive vegetable oil High barriers to entry: significant capex requirement and logistic support plus 3-4 years for a new plantation to yield fruit High competition for suitable land NBPOL Example Customers Ferrero Jordans Wilmar United Biscuits c.90% of NBPOL s output is sold into the EU in US$ contracts Indicative oil yields Palm Oil (NBPOL) Palm Oil (World Average) Rape Sun Soya Source: USDA/NBPOL Globally achieved Oil yield (tonnes / Ha) Crop composition of land used globally to produce vegetable oils Composition of global vegetable oil production 6% Palm Rape Sunseed 15% 17% 62% 36% 37% Soya 11% 16% Source: USDA 10

12 NBPOL Today Plantations Land bank c.134,500 ha 77,518 hectares under NBPOL cultivation with respect to oil palm More than 42,000 mature hectares cultivated by smallholders supplying NBPOL Milling and Refining 12 oil mills in Group 2 refineries Special fractionation plant completed for Ferrero World s first dedicated sustainable bakery ingredients and food service packing operation in UK Infrastructure c.80,000 tonnes / oil storage capacity Trucking transport fleet Housing Two new methane capture facilities completed Export terminals Revenue contribution Palm Oil Sales Seed Sales Sugar sales Cattle Production Highly respected plant breeding research and development Important for success of wider business Growing customer base around the world NBPOL is one of the world s largest private seed producers 9,282 hectares of cattle grazing land Integrated with the palm oil plantation Important for the protein constrained local community >22,000 head of cattle RAIL 1 sugar mill 1 ethanol plant 7,731 hectares sugar cane 11

13 New Britain Oils Complete and operational Running ahead of internal utilisation targets Liverpool Refinery Capacity Utilisation No. of Customers World s first dedicated sustainable bakery foodstuffs production facility now open 100% 90% Bulk Customers Packed Customers Key contracts with well known UK and EU brands 80% 70% New deodoriser on schedule for end June to double capacity 60% 50% Captures greater margin share for NBPOL First palm oil refinery in the EU to have a fully segregated and sustainable supply chain The first palm oil provider able to guarantee fully traceable, sustainable palm oil direct from the plantation to the EU consumer 40% 30% 20% 10% 0% May 10 Jul Sep Nov Jan 11 Mar May Jul Sep Nov Jan 12 Mar May Jul May 10 Jul Sep Nov Jan 11 Mar May Jul Sep Nov Jan 12 Mar May Jul 12

14 Corporate Events NBPOL s first LTIP was approved by shareholders in May Setting performance criteria for management and key staff Acquisition of remaining 20% of KPOL by issuance of new NBPOL shares in April 2012 Acquisition of Orangerie Bay Plantation Limited for $4.4m in cash in July 2012, giving NBPOL potentially up to c.11,000 hectares of new land for oil palm planting 13

15 Outlook 138,000 tonnes CPO sold into remainder of 2012 at $1,084 / tonne Following improved weather conditions, expectation to see return to more normalised FFB collection: -- although extraction rates are likely to remain lower than normal for the remainder of 2012 Expecting to return to more normalised production and extraction in 2013 Embarking on cost saving initiatives to address impact of stronger currency on margins Expecting easing of key operational costs (freight, fertiliser, and fuel) New kernel crushing plants will increase oil volume These initiatives aim to reduce unit cash cost of production and improve margins Continue to source attractively priced assets 14

16 Sustainability All long standing NBPOL estates and supply chain certified as fully sustainable and traceable Firm commitment to have all new units and supply chains certified as fully sustainable and traceable by the end of 2012 NBPOL has been instrumental in developing the Roundtable on Sustainable Palm Oil ( The RSPO has over 300 members including WWF, the Zoological Society of London and Oxfam NBPOL has control over its harvesting, milling, transportation, shipping and now refining, it can trace individual shipments back to source With the UK refinery it has a unique fully sustainable and traceable supply chain to the EU 15

17 Disclaimer The information contained in this document is for information only. No representations or warranties, express or implied, are given by the Company or any person connected with the Company as to the fairness, accuracy or completeness of the information or opinions contained in this document, any presentation made in conjunction herewith or the accompanying materials and no liability is accepted in respect thereof, to the extent permitted by law. To the fullest extent permitted by law, none of the Company, Akur or any other party or any of their respective subsidiary undertakings or affiliates or any of such person s officers or employees, advisors or other representatives, accepts any liability whatsoever (whether in negligence or otherwise) arising directly or indirectly from the use of this document. This document is being furnished to you on a confidential basis and may not be disclosed, reproduced or redistributed, in whole or in part, by any medium or in any form to any other person for any purpose without the Company s prior written consent. You shall treat and safeguard as strictly private and confidential all information contained in this document and take all reasonable steps to preserve such confidentiality. You shall not use this document or the information contained therein in any manner detrimental to the Company. This document has been prepared for information purposes only and should not be relied upon, or form the basis for any decision or action, by any person. This document contains forward-looking statements that involve substantial risks and uncertainties and actual results and development may differ materially from those expressed or implied by these statements by a variety of factors. By accepting this document and attending the presentation you agree to be bound by the foregoing limitations. August

18 New Britain Palm Oil Ltd 2012 Phone: +44 (0)