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Ioi Corporation Berhad IOI CORPORATION BERHAD CGS-CIMB 13th Annual Malaysia Virtual Corporate Day Vision,Conclusion Mission & Core Values “ Our Vision is to be a leading and sustainable Malaysian business corporation with global presence. ” “ Our Mission is to achieve responsible and sustainable commercial success by addressing the interests of all our stakeholders, caring for the community and the environment, and adopting best practices to be globally competitive. ” 2 Global Presence 3 Group Overview ❖ LEADING INTEGRATED AND SUSTAINABLE PALM OIL GROUP WITH GLOBAL PRESENCE. 4 GroupIntegrated Financial Value Snapshot Chain 5 GroupGroup Financial Financial Snapshot Snapshot GROUP'S PROFIT BEFORE INTEREST & TAXATION (RM MILLION) (BY SEGMENT) GROUP REVENUE (RM MILLION) 1,394 1,400 1,037 1,087 384 1,200 8,000 1,000 385 800 553 7,000 600 1,010 7,418 7,386 7,802 400 702 484 6,000 200 5,000 0 FYE 2018 FYE 2019 FYE 2020 4,000 Plantation Resource-based manufacturing 3,000 2,000 1,000 0 FYE 2018 FYE 2019 FYE 2020 6 Plantation Plantation OVERVIEW • 177,000 ha of oil palm plus 1,100 ha of rubber and coconut planted areas across 96 estates. • 15 palm oil mills with total 4.6 million MT annual milling capacity. • Holds 32% interest in an associate company, Bumitama Agri Ltd, which has a planted nucleus area of 133,000 ha as at 30 June 2020 (effective interest is approx. 43,000 ha). • 100% of Malaysian plantations are both RSPO and MSPO- certified. 7 Plantation Plantation LOCATION OF PLANTATION OPERATIONS East Malaysia (113,162 ha) Kalimantan, Indonesia (20,724 ha) Peninsular Malaysia (43,023 ha) 8 Plantation – Oil Palm Age Profile Weighted average planting age: 13.4 years 9 PlantationPlantationPlantation - - KeyKey - OperationalKey Operational Operational Highlights Highlights Highlights FFB Production (MT)/ Yield (MT/HA) OER (%) 4,000,000 26.0 3,515,000 23.6 25.00% 3,500,000 3,399,000 24.0 20.90% 21.44% 21.83% 23.0 3,097,000 3,000,000 22.0 20.00% 21.2 2,500,000 20.0 15.00% 2,000,000 18.0 1,500,000 16.0 10.00% 4.85% 4.72% 1,000,000 14.0 4.67% 5.00% 500,000 12.0 - 10.0 0.00% FYE 2018 FYE 2019 FYE 2020 FYE 2018 FYE 2019 FYE 2020 10 Plantation Plantation Progress and highlights • Over 10,000 ha of aging trees were replanted during FY2020 with higher yielding planting materials. • Completed new planting of about 2,400 ha of oil palm on last concession area in Kalimantan, Indonesia during FY2020. • Completed implementation of SAP ERP system and mobile crop monitoring system in all Malaysian plantations in December 2020. • Implementing mechanisation of FFB Main Line Evacuation in all Malaysian estates which is expected to complete by year 2023. 11 ResourceResourceResource Based Based Manufacturing BasedManufacturing Manufacturing OVERVIEW • The resource-based manufacturing division consists of: - Midstream: Refining and Fractionation - Downstream: Oleochemical Specialty oils and fats (associate) 12 ResourceResource BasedBased ManufacturingManufacturing Refinery and Oleochemical 6 manufacturing facilities: ❖ Two refineries located at Johor and Sabah, Malaysia; ❖ Two oleochemical plant complex located at Penang and Johor, Malaysia, including a fatty ester plant in Penang; and ❖ Two specialty ester plants in Germany. Oleochemical applications Cosmetics Plastic & Soap & Rubber Lubricants Pharmaceuticals Paint & Ink & Toiletries additives Detergents & Tires & Greases 13 ResourceResource BasedBased ManufacturingManufacturing Specialty Oils & Fats Manufacturing facilities owned by Bunge Loders Croklaan, a 30% owned associate company: ❖ Six specialty oils and fats plants located at Malaysia, Netherlands, USA, Canada, Ghana and China. Specialty oils & fats applications Spreads Bakery Confectionary Infant nutrition Animal Nutrition Frying Culinary 14 ResourceResourceResource Based Based Manufacturing BasedManufacturing Manufacturing Key Operational Highlights Sales Volume in MT MT 1,917,195 1,973,792 2,000,000 1,789,617 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 714,024 714,131 669,854 800,000 600,000 400,000 200,000 - 2018 2019 2020 Oleochemical Refinery 15 ResourceResourceResource Based Based Manufacturing BasedManufacturing Manufacturing Progress and highlights • CPO is 100% traceable to mill and 68% to plantation. Refinery • PKO is 100% traceable to mill and 65% to plantation. • New 110,000 MT/year capacity oleochemical plant in Prai, Penang is estimated to complete by end of 2021. Oleochemical • Owner of 14 Patents for pharmaceutical application via IOI Oleo GmbH, Germany. Specialty oils & • Ghana plant for shea butter fractionation commissioned. • Expanding product offering in the nutrition category, fats (associate) from infant nutrition to sports and elderly nutrition. 16 IOI FivePlantation-Year Plan (2020-2024) Objective:- • Progress from a cost competitive palm oil producer to a high value-added diversified palm-based products producer. • Increase resilience and competitiveness for the future. • Driven by five strategic priorities from years 2020 to 2024. 17 StrategicPlantation Priority 1 Increase Oil Palm Yield ➢ Target: Increase plantation oil yields across various age groups by at least 15%. ✓ Utilise clonal palms in 50% of our replanting materials. ✓ Employ best agricultural practices, improve field conditions and optimise land usage in oil palm plantations. ✓ Implement mechanisation of FFB main line evacuation and mobile crop monitoring system to improve crop turnaround time and reduce crop losses. 18 StrategicPlantation Priority 2 Reduce Plantation Labour Requirement ➢ Target: Increase land to labour ratio by 20%. ✓ Mechanise FFB main line evacuation, in-field FFB collection, manuring and empty fruit bunches (EFB) application to reduce dependence on manual labour. ✓ Increase harvesters’ productivity by 3% p.a. over the next five years. ✓ Implement integrated data platform and mobile crop monitoring system to reduce and optimize plantation clerical staff. 19 StrategicPlantation Priority 3 Diversify Crops ➢ Target: Diversify planting of crops away from full reliance on oil palm. ✓ Plant 6,000 ha of other crops, particularly high value crops with main focus on coconut, kenaf and durian. ✓ Implement best cultivation practice for coconut, kenaf and other crops (durian, pineapple, avocado and banana). ✓ Introduce intercropping of fast growing crops such as pineapple and banana to increase land output. 20 StrategicPlantation Priority 4 Expand Non-Crude Palm Oil (“CPO”) Segment ➢ Target: RM100 million operating profit identified from launched projects. ✓ Convert oil palm by-products and processing waste into value- added products at a competitive cost: WASTES USAGE OPT (Oil Palm Trunk) Produce palm wood panels for use as building materials. EFB (Empty Fruit Steam and power generation, compost fertiliser, Bunches) paper pulp, industrial sugars for food & beverage. Methane Gas from mill Biogas for steam and power generation. Effluent 21 StrategicPlantation Priority 5 Grow the Oleochemical Segment ➢ Target: Increase operating profit contribution from oleochemical segment by RM100 million. ✓ Expand manufacturing capacity through new plants and debottlenecking. ✓ Enhance cost efficiency through automation. ✓ Develop new product applications in high-margin sectors like pharmaceutical and beauty care. ✓ Increase and protect product margins through strategic partnerships with multinational customers and patent registration. 22 SustainabilitySustainability • One of the constituent stocks on the FTSE4Good Bursa Malaysia Index. • All plantations in Malaysia are RSPO-certified. • 58% of Malaysian plantations are ISCC-certified. • Winner of the National Council for Occupational Safety and Health Award (Agriculture Industry). • Ranked 13th with overall score of 71.9% in SPOTT rating and scored silver in EcoVadis Sustainability Rating. • Started Climate Change Action Initiative with target of reducing carbon intensity from operations in year 2025 by at least 40% from year 2015 level. 23 SustainabilityAwards and Achievement 24 Thank You 25.
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