New Britain Palm Oil (Group)

Transcription

1 New Britain Palm Oil (Group) Robert K. Nilkare Country Manager, NBPOL Papua New Guinea President, Business Council of Papua New Guinea Andy Worrall Head of EMEA, Sime Darby Plantations Downstream & Group Commercial Director, NBPOL

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3 Disclaimer This document, which is personal to the recipient ( Recipient ), has been prepared by New Britain Palm Oil Limited (the Company ). This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company or any other entity. Prospective investors are required to make their own independent investigations and appraisals before taking any investment decision. In making this document available to the Recipient the Company is not agreeing to take or refrain from taking any action in future or to undertake, or cease to undertake, any activity. Any recipient who is in any doubt about the matters referred to herein should take advice from an authorised person specialising in advising on matters of this kind. No representation or warranty, express or implied, is given by or on behalf of the Company or any of such persons directors, officers or employees or any other person as to the accuracy, fairness of the presentation, completeness of the information or opinions contained in this document. No liability whatsoever is accepted by the Company or any of such persons members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. This document may not be reproduced, copied, redistributed or passed on, directly or indirectly, whether in hard copy or by , to any other person or published, in whole or in part, for any purpose. This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or any jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Neither this document nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions or distributed, directly or indirectly, in the United States of America, its territories or possessions where to do so would contravene any law or regulation which would require any registration or licensing within such jurisdiction. Neither this document nor any copy of it may be taken or transmitted into Canada, Australia or Japan or to Canadian, Australian or Japanese persons or to any securities analyst or other person in any of those jurisdictions. Any failure to comply with this restriction may constitute a violation of United States, Canadian, Australian or Japanese securities law. 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. Certain statements, beliefs and opinions in this document are forward-looking, which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or including the words targets, believes, expects, aims, intends, may, anticipates, would, could or similar expressions or the negative thereof. These statements reflect the Company s or, as appropriate, the Company s directors current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Such forward-looking statements are based on numerous assumptions regarding present and future business strategies. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward looking statements, which speak only as of the date of this document

4 Contents 1 Overview 5 Business Model 2 Introduction 6 NBPOL Supply Chain 3 Brief History 7 Sustainable Agriculture 4 NBPOL Operations 4

5 Overview

6 Introduction New Britain Palm Oil Limited (NBPOL) is a large scale, fully vertically integrated, industrial producer of sustainable palm oil, headquartered in PNG One of the world s largest producers of sustainable palm oil delivering 100% segregated, traceable and certified sustainable food ingredients direct to our customer base Worldwide Locations United Kingdom c.95%+ of NBPOL s output is sold to EU customers Founding member of the Palm Oil Innovation Group (POIG) and instrumental in developing the Roundtable on Sustainable Palm Oil (RSPO) First palm oil company to include all of its smallholders in the RSPO certification process c. 25,000 employees world-wide NBPOL is now part of the Sime Darby group of companies Indonesia Singapore Papua New Guinea Solomon Is. 6

7 Overview Resource 136,268ha Agriculture Land Holding 80,000ha Oil Palm Estates 42,000ha Oil Palm Smallholders 7,700ha Sugar Cane 9,300ha Cattle Grazing supporting 20,000 Head of Cattle People NBPOL Group employs 25,000 people. NBPOL PNG employs 23,000 people 112,500 family members are direct beneficiaries 17,394 PNG Smallholder Blocks (plus 216 from Solomon Islands) Represents 323,750 smallholder family members as direct beneficiaries Sustainability One of the world s largest producers of sustainable palm oil delivering 100% segregated, traceable and certified sustainable food ingredients direct to our customer base 95% of NBPOL s output is sold to EU customers Instrumental in developing the Roundtable on Sustainable Palm Oil (RSPO) & now becoming Rainforest Alliance certified First palm oil company to include all of its smallholders in the RSPO certification process 7

8 Introduction Locations KPOL, Poliamba - acquired in April ,665 hectares oil palm NEW IRELAND Oil palm nursery, WNB PAPUA NEW GUINEA NEW BRITAIN Main area of NBPOL operation 36,985 hectares oil palm GPPOL - acquired in April ,283 hectares oil palm RAIL - acquired in Oct ,421 hectares oil palm 7,515 hectares sugar cane 8,751 hectares pasture KPOL, Higaturu - acquired in April ,228 hectares oil palm KPOL, Milne Bay - acquired in April ,968 hectares oil palm SOLOMON ISLANDS Oil palm estate, WNB Orangerie Bay Plantations - acquired in July 2012 c. 5,350 hectares AUSTRALIA 8

9 Brief History 1960s Land acquisition by Dept of Agriculture for the PNG Administration 1967 New Britain Palm Oil Development Limited incorporated (later renamed NBPOL) 1985 Establishment of Kapiura estates, WNB 1990 Establishment of Numundo estates, WNB year leases signed for Mosa block, WNB 1996 Kulim (Malaysia) Berhad acquires 90% shareholding in NBPOL 1999 NBPOL listed on Port Moresby Stock Exchange 2004 NBPOL becomes a founding member of RSPO 2006 Acquisition of GPPOL, Solomon Islands 2007 NBPOL listed on Main Market of London Stock Exchange 2008 West New Britain and its 7,000 smallholders achieve RSPO certification 2008 Acquisition of RAIL 2009 Ferrero supply agreement and construction of frac plant 2010 Acquisition of Kula Group 2010 Commissioning of Liverpool refinery 2012 Commissioning of Liverpool bakery fats facility 2012 Acquisition of Vitroplant Orangerie Bay Ltd 2012 RSPO certification of all Group estates and smallholders 2013 Partial takeover offer by Kulim 2013 Joint venture with SIPEF and BioSing to develop F1 hybrids 2015 Completion of billion takeover offer for NBPOL by Sime Darby Plantation Sdn Bhd 2015 NBPOL delisted from London Stock Exchange and Port Moresby Stock Exchange NBPOL has achieved consistent growth over its 50 year history 9

10 NBPOL Operations Palm Oil Segment 90% c.80,000 Ha NBPOL managed estates c.42,500 Ha smallholders supplying NBPOL c.635 MT/Hr total milling capacity c.440,000 MTs total refining capacity Revenue Contribution FY2014 7% Sugar Segment 7,718 hectares sugar cane 1 sugar mill 1 ethanol plant Ramu Sugar retail brand Total Land Bank 136,268 hectares FFB Production FY m metric tonnes CPO Production FY k metric tonnes PKO Production FY k metric tonnes Sugar Production FY k metric tonnes Seeds Segment (and Other) Dami Seeds - one of the world s largest private seed producers 52% stake in Verdant Bioscience 1% Cattle Segment 9,282 hectares of cattle grazing land Integrated with palm oil plantation >20,000 head of cattle 2% Monthly Revenue US$30-40million (Avg) Note: Seeds segment includes revenue from the sale of rubber products and ethanol. Figures estimates as at 31 December year end c.1,500 Ha of sugar cane has been converted to oil palm. 10

11 Operating Unit Activities Fully Integrated Business Model Across the palm oil value chain Upstream Midstream and Refining Downstream Seed breeding Plantations Processing Origin refining Logistics, export and trading Destination refining End markets Seed breeding/ cloning Seed production and sales c. 80,000 ha planted oil palm c.42,500 ha smallholder land supplying NBPOL mills Staff housing 12 CPO mills 6 kernel crushing plants Total milling capacity c.635 MT FFB/Hr 2 methane capture plants 140,000 MT refinery at Kumbango, PNG Fractionation plant (Ferrero) Trucking transport fleet Export terminals 80,000 MTs oil storage In-house shipping, trading and risk mgm t 300,000 MT refinery at Liverpool, UK Bakery fats plant at Liverpool Significant market share in UK and Ireland Supplying major food brands New Britain Plantation Services Pte Ltd 11

12 NBPOL Supply Chain A unique supply chain fully integrated and low cost delivering 100% segregated, traceable and certified sustainable food ingredients 12

13 Sustainable Agriculture Our Approach: Sustaining People, Planet and Prosperity Building 100% segregated, traceable and certified sustainable supply chains is core to our business philosophy Sustainability certification is not a cost of doing business rather a way to differentiate our business in a commoditised industry and satisfy customer requirements NBPOL has a long history of industry leadership and innovation in sustainable palm oil Active engagement with all stakeholder groups: employees, customary landowners, smallholders, community groups, customers/consumer groups, investors, Governments, NGOs Committed to achieving tangible objectives, not just policies a Principle-to-Practice approach NBPOL APPROACH TO SUSTAINABLE AGRICULTURE Environmental Responsibility Partnerships with Communities Corporate and Product Integrity Breaking the link between palm oil expansion and deforestation Greenhouse gas (GHG) accountability Protect and conserve wildlife Pesticides use minimisation and chemical fertiliser Water accountability GMOs prohibition Peat land planting prohibition Free, Prior and Informed Consent (FPIC) of indigenous peoples and local communities Food security Effective conflict resolution Social conditions Workers rights Support of palm oil smallholders RSPO certification and responsible supply chains Traceability Transparency and anti-corruption Report on Social, Labour and Environmental Performance 13

14 Sustainable Agriculture Carbon Reduction No burn policy (since 1967) and no planting on peat land Methane Capture Plant Detailed strategy to reduce the Group s carbon footprint and achieve the Zero Net GHG Emissions commitment Active planting on grasslands and scrub (net sequestration) Oil palm sequesters carbon from the environment and locks it up in the biomass of trunk, fruit bunches and fronds Total standing carbon contained in palm trees in West New Britain is calculated to be tonnes of carbon per hectare at 21 years On average, oil palms in West New Britain add 4.06 tonnes of carbon per hectare per year producing a time averaged sequestration rate of t CO2eq /ha/year Two methane capture projects have been commissioned and further internal power generation capacity is in preliminary development stages NBPOL also operates a 5MW biomass power plant at Kumbango reducing diesel requirements at this site by ~1 million litres p.a. Carbon Analysis: Sources of emissions at NBPOL Nitrogenous fertiliser 3% Palm Oil Mill Effluent 26% Mature fertiliser transport 3% Fuel in transport 1% 0% Cambodia Mill diesel 0.5% use 0.6% Planting on peat 0.4% Land clearing 66% 14

15 Thank you!