Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition

$Page 1: Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition$
IOI CORPORATION BERHAD

CGS-CIMB 13th Annual Malaysia

Virtual Corporate Day

ConclusionVision, Mission & Core Values

2

“ 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. ”

Global Presence

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Group Overview

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❖LEADING INTEGRATED AND SUSTAINABLE

PALM OIL GROUP WITH GLOBAL PRESENCE.

Group Financial SnapshotIntegrated Value Chain

5

0

200

400

600

800

1,000

1,200

1,400

FYE 2018 FYE 2019 FYE 2020

1,010

484702

384

553385

GROUP'S PROFIT BEFORE INTEREST & TAXATION (RM MILLION) (BY SEGMENT)

Plantation Resource-based manufacturing

Group Financial SnapshotGroup Financial Snapshot

6

1,394

1,037 1,087

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

FYE 2018 FYE 2019 FYE 2020

7,418 7,386 7,802

GROUP REVENUE (RM MILLION)

Plantation

• 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.

Plantation

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OVERVIEW

Plantation

LOCATION OF PLANTATION OPERATIONS

East Malaysia (113,162 ha)

Peninsular Malaysia (43,023 ha)

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Plantation

Kalimantan, Indonesia

(20,724 ha)

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Plantation – Oil Palm Age Profile

Weighted

average

planting age:

13.4 years

Plantation - Key Operational HighlightsPlantation - Key Operational HighlightsPlantation - Key Operational Highlights

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3,515,000 3,399,000

3,097,000

23.6

23.0

21.2

10.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

26.0

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

FYE 2018 FYE 2019 FYE 2020

FFB Production (MT)/ Yield (MT/HA)

20.90% 21.44% 21.83%

4.85% 4.72% 4.67%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

FYE 2018 FYE 2019 FYE 2020

OER (%)

Plantation Plantation

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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.

Resource Based Manufacturing

• The resource-based manufacturing division

consists of:

- Midstream:

Refining and Fractionation

- Downstream:

Oleochemical

Specialty oils and fats (associate)

OVERVIEW


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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.


Refinery and Oleochemical

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Oleochemical applications

Cosmetics

& Toiletries

Plastic &

additives

Soap &

Detergents

Rubber

& TiresLubricants

& GreasesPharmaceuticals Paint & Ink

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

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Specialty oils & fats applications

CulinaryBakerySpreads Animal NutritionConfectionary FryingInfant nutrition

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2018 2019 2020

714,024 714,131 669,854

1,789,617

1,917,195 1,973,792

Sales Volume in MT

Oleochemical Refinery


Key Operational Highlights


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MT


Progress and highlights


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• CPO is 100% traceable to mill and 68% to plantation.

• PKO is 100% traceable to mill and 65% to plantation.Refinery

• New 110,000 MT/year capacity oleochemical plant in Prai, Penang is estimated to complete by end of 2021.

• Owner of 14 Patents for pharmaceutical application via IOI Oleo GmbH, Germany.

Oleochemical

• Ghana plant for shea butter fractionation commissioned.

• Expanding product offering in the nutrition category, from infant nutrition to sports and elderly nutrition.

Specialty oils & fats (associate)

Plantation

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IOI Five-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.

➢ 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.

Plantation

Increase Oil Palm Yield

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Strategic Priority 1

➢ 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.

Plantation

Reduce Plantation

Labour Requirement

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Plantation

Diversify Crops

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➢ 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.


Plantation

Expand Non-Crude Palm Oil (“CPO”) Segment

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➢ 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

Bunches)

Steam and power generation, compost fertiliser,

paper pulp, industrial sugars for food & beverage.

Methane Gas from mill

Effluent

Biogas for steam and power generation.

➢ 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.

Plantation

Grow the Oleochemical Segment

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Sustainability

• 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.

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Sustainability

Sustainability

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Awards and Achievement

Thank You

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Virtual Corporate Day - IOI Group€¦ · IOI Oleo GmbH, Germany. Oleochemical •Ghana plant for shea butter fractionation commissioned. •Expanding product offering in the nutrition

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