IOI Corporation Berhad · MYX:IOICORP
IOI Corporation Berhad — Invest Malaysia 2016
20 slides from IOI Corporation Berhad's conference presentation, Jun 15, 2016
Slide 1: IOI Corporation Berhad – Invest Malaysia 2016
IOI CORPORATION BERHAD INVEST MALAYSIA 2016
Slide 2: IOI Group – Overview
IOI GROUP – OVERVIEW ONE OF THE LARGEST AND MOST VERTICALLY INTEGRATED PALM OIL COMPANIES IN MALAYSIA MARKET CAPITALIZATION OF RM29.5 BILLION (AS AT 31 MARCH 2016) 13 12 9 8 11 10 2 1 3 5 14 17 7 6 15 16 Plantation & Mill Resource-based Manufacturing 4 Sales/Procurement/Regional Office 2
Slide 3: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Revenue EBIT Plantation & Resource-based Manufacturing Plantation & Resource-based Manufacturing 14,000 1,600 1,461 11,621 1,400 12,000 1,200 10,000 1,000 935 RM’ million 8,000 RM’ million 776 800 5,851 6,055 6,000 600 4,000 400 2,000 200 - - FY 2015 1H FY2015 1H FY2016 FY 2
Slide 4: Plantation
PLANTATION 180,000 hectares Malaysia: 159,000 ha (89%) Indonesia: 21,000 ha (11%) Malaysia: 14 mills Indonesia: 1 mill • Total titled area of approximately 207,000 ha in Malaysia and Indonesia. • Balance of unplanted area is around 9,000 ha. • Holds 31.7% interest in an associate company, Bumitama A
Slide 5: Plantation – Location and Age Profile
PLANTATION LOCATION OF PLANTATION OPERATIONS AGE PROFILE OF OIL PALM Total planted area of 180,000 ha PLANTATION East Malaysia (116,000 ha) Peninsular Malaysia (43,000 ha) Indonesia (21,000 ha) • Average planting age of around 13 years old. Plantation estates Palm oil mill 5
Slide 6: Key Operational Highlights
KEY OPERATIONAL HIGHLIGHTS FFB Yield OER 30.00 23.99 23 21.90 (+1.7%) 25.00 21.54 22 21.49 20.00 21 MT/ha 15.00 13.33 12.86 (-3.5%) % 20 10.00 5.00 19 - 18 FY 2015 1H FY2015 1H FY2016 FY 2015 1H FY2015 1H FY2016 CPO Production CPO Yield 1,000,000 6.00 5.33 781,625 800,000 5.00 4.00 2.87 2.82 (-1.7%)
Slide 7: Plantation Growth Drivers
PLANTATION GROWTH DRIVERS GROWTH DRIVERS • Open to acquire more plantation land in Malaysia or Indonesia to Expansion growth support internal consumption of CPO. • Complete the planting of remaining 9,000 ha in Indonesia over the next 2 – 3 years. • Replanting of oil palm will use high-yielding clon
Slide 8: Plantation Outlook
PLANTATION OUTLOOK OUTLOOK El Nino • El Nino has resulted in lower FFB output • Biodiesel as a long-term CPO price driver, supported by the Biodiesel respective mandates of Indonesia (B20 in 2016) and Malaysia (B7 to B10) Palm oil inventory • Declining palm oil inventory i.e. latest 1.89 million ton
Slide 9: Resource-Based Manufacturing
RESOURCE-BASED MANUFACTURING OVERVIEW • The resource-based manufacturing division consists of: Midstream - refining of crude palm oil Downstream - oleochemicals and specialty oils & fats products. • Strong presence in Asia, Europe & USA with sales to more than 85 countries worldwide. • 7 marketing o
Slide 10: Resource-Based Manufacturing – Facilities
RESOURCE-BASED MANUFACTURING • 13 manufacturing facilities in 6 countries: Refinery Four refineries in Malaysia and the Netherlands Oleochemicals Two oleochemical plants in Penang and Johor, Malaysia One fatty ester plant in Penang, Malaysia Two specialty ester plants in Germany 30% interest in Kao
Slide 11: Cremer Oleo Acquisition
RESOURCE-BASED MANUFACTURING CREMER OLEO ACQUISITION Overview on the Cremer plant • Acquisition was completed in February 2016 • Purchase price of EUR90 million • Combined Capacity: 40,000 mt • Production capability: Esters and Basic Oleo • Market leader in specialty esters for pharmaceutical and pe
Slide 12: Location of Resource-Based Manufacturing Facilities
RESOURCE-BASED MANUFACTURING Location of resource-based manufacturing facilities Europe The Netherlands – Wormerveer & Rotterdam •1 refinery (1.2 million ton/year) •1 specialty oils & fats plant (220,000 ton/year) Germary – Witten & Wittenberge •2 oleochemical plants (40,000 ton/year) Asia North Ame
Slide 13: Oleochemical Application
OLEOCHEMICAL APPLICATION Soap & Detergents Textile & Paper Pharmaceuticals Cosmetics & Toiletries Rubber & Tires Plastic & additives Food Additives Paint & Ink Lubricants & Greases Candles 13
Slide 14: Specialty Oils & Fats Application
SPECIALTY OILS & FATS APPLICATION Bakery Infant nutrition Confectionary Spray oil Spreads Animal nutrition Frying Energy Culinary Dairy fat alternatives 14
Slide 15: Betapol
BETAPOL Betapol used in 12 countries in Europe and Asia 15
Slide 16: Resource-Based Manufacturing Growth Drivers
RESOURCE-BASED MANUFACTURING GROWTH DRIVERS GROWTH DRIVERS • New plant in China for specialty fats products Expansion of Completion expected in 3Q 2016 capacity • Recent acquisition of specialty oleochemical plant in Germany • Partnership with strong partners to expand geographical footprint. • Crea
Slide 17: Resource-Based Manufacturing Outlook
RESOURCED-BASED MANUFACTURING OUTLOOK OUTLOOK Higher demand for • Higher demand for premium food ingredients in the increasingly premium food affluent Asian countries ingrediends • Banning of trans fats may further boost the consumption of Trans fats ban in palm-based products in the US. US Specialt
Slide 18: TPPA – Effects on Palm Oil and IOI
TPPA EFFECTS ON PALM OIL AND IOI • Increase palm oil exports to countries such as Canada, Mexico and Peru. Note: US do not have import duties on palm oil and palm kernel oil • The removal of import duties on downstream products such as oleochemicals and packed specialty fats will increase IOI’s expo
Slide 19: China's One Belt One Road (OBOR)
CHINA’s ONE BELT ONE ROAD (OBOR) Background Benefits to IOI • China’s OBOR strategy aims to promote • The OBOR strategy will increase the demand for infrastructure development and increase trade flows palm oil and downstream palm products through in Asia, the Middle East, parts of Europe, South bett
Slide 20: Conclusion
CONCLUSION Maximise Stakeholders’ Returns RESOURCE-BASED PLANTATION MANUFACTURING • Continued emphasis on • Good technical expertise and replanting with high- market reputation. yielding clonal and elite palms. • Integration of downstream business with upstream • Focus on operational plantations giv