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CORPORATE PROFILE May 2014

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Page 1: CORPORATE PROFILE - ChartNexusir.chartnexus.com/fgv/docs/presentation/Corporate... · CORPORATE PROFILE May 2014 . Disclaimer These materials have been prepared by Felda Global Ventures

CORPORATE PROFILE May 2014

Page 2: CORPORATE PROFILE - ChartNexusir.chartnexus.com/fgv/docs/presentation/Corporate... · CORPORATE PROFILE May 2014 . Disclaimer These materials have been prepared by Felda Global Ventures

Disclaimer

These materials have been prepared by Felda Global Ventures Holdings Berhad (“FGVH” or the “Company”) solely for informational purposes, and are strictly confidential and may not be taken away, reproduced or redistributed to any other person. By attending this presentation, participants agree not to remove this document from the conference room where such documents are provided without express written consent from the Company. Participants agree further not to photograph, copy or otherwise reproduce these materials at any point of time during the presentation or while in your possession. By attending this presentation, you are agreeing to be bound by the foregoing restrictions. Any failure to comply with these restrictions may result in a violation of applicable laws and commencement of legal proceedings against you. It is not the Company’s intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company’s financial position or prospects. The information contained in these materials has not been independently verified and is subject to verification, completion and change without notice. The information contained in these materials is current as of the date hereof and are subject to change without notice, and its accuracy is not guaranteed. The Company is not under any obligation to update or keep current the information contained in these materials subsequent to the date hereof. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company, or any of its directors and affiliates or any other person, as to, and no reliance should be placed for any purposes whatsoever on, the fairness, accuracy, completeness or correctness of, or any errors or omissions in, the information contained in these materials. Neither the Company, its directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of these materials or their contents or otherwise arising in connection therewith. These materials contain historical information of the Company which should not be regarded as an indication of future performance or results. These materials may also contain forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These forward-looking statements reflect the Company’s current views with respect to future events and are not a guarantee of future performance or results. Actual results, performance or achievements of the Company may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future, and must be read together with such assumptions. Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future or likely performance of the Company, and the forecast financial performance of the Company is not guaranteed. No reliance should be placed on these forward-looking statements, if any.

2

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1. Information Background

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Significant Shareholders (Total number of shareholders 49,057)

Top 10 Shareholding Position as at 31 Dec 2013

Shareholding 31 Dec

2012

31 Dec

2013

Changes

Malaysian

Bumi

Non- bumi

92.0%

81.4%

10.6%

90.1%

78.9%

11.1%

-2.1%

-3.1%

+4.7%

Foreign 8.0% 9.9% +23.8%

Total 100% 100%

Shareholding Breakdown as at 31 Dec 2013

Share Information as at 7 April 2014

Item

No. of Shares 3.65 billion

Price as at 14 February 2014 RM4.55

Market Capitalization RM16.6 billion

Shareholder’s Funds RM6.57 billion

Bursa Stock Code (5222)

FTSE Bursa Malaysia KLCI Constituent

MSCI Malaysia Index Constituent

Securities Commission Shariah Stock

4

No. Shareholders No. of shares %

1 FELDA 729,629,800 20.00%

2 Felda Asset Holdings 680,722,800 18.66%

3 Permodalan Nasional Berhad* 297,634,000 8.16%

4 Lembaga Tabung Haji 283,710,100 7.78%

5 Kumpulan Wang Persaraan

(Diperbadankan) 285,017,400 7.81%

6 EPF Board 254,405,700 6.97%

7 Pahang State Government 182,407,575 5.00%

8 Sawit Kinabalu Sdn Bhd 89,010,989 2.44%

9 National Association (Qatar) 85,433,900 2.34%

10 Chief Minister State of Sabah 65,934,066 1.81%

2,953,906,330 80.97%

11 Others 694,245,170 19.03%

Total 3,648,151,500 100%

*Including ASB, ASW2020, AS1M and ASM

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History

1956 Federal Land

Development Authority ("FELDA”) was established as a statutory body under Land Development Ordinance

1959 – 1990 More than 850,00 Ha of land granted by state government under Group Settlement Area Act 1960 (“GSA”) had been brought under cultivation through FELDA operations

1980 Koperasi

Permodalan Felda (“KPF”) was established under the Co-operative Act

1990 FELDA decided

to stop further intake of small holders

1995 Incorporation of

Felda Holdings Berhad (“FHB”) as a wholly owned subsidiary of FELDA

2007 Incorporation of

FGV as a wholly owned subsidiary of FELDA

2008 FGV acquired

FGV North America from FELDA

2009 FGV acquired

49% equity interest in FHB from FELDA

2010 FGVH acquired

sugar business

2011 MSM Holdings

was listed on the Main Market of Bursa Securities

2012 Adoption of

New Business Model

28 June 2012 FGV was listed on the Main Market of Bursa Securities on 28 June 2012

2013 FGV gained full

control of FHB by acquiring 51% from KPF

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LAND STRUCTURE

More than 850,000 Ha of Land

355,864 Ha

Felda Small Holders

479,765 Ha

• Small holders own the land

• Managed by FELDA/small holders

• Contractual arrangements with FELDA • 99-year lease

Granted by state governments under Group

Settlement Area Act 1960 (GSA)

FELDA

6

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FGV

Corporate Structure

PT Citra Niaga

Perkasa

FGV Plantations

(Malaysia) Sdn

Bhd

FGV

Kalimantan Sdn

Bhd

100%

100%

95%

100%

FGV

Plantations

Sdn Bhd

Trurich

Resources Sdn

Bhd

7

TRT : Twin Rivers Technologies

ETGO : Enterprises de Transformation de Graines Olégineuses du Québec

KGPF : Kilang Gula Felda Perlis

MSM : Malayan Sugar Manufacturing

FGV

Sugar

MSM Company

Bhd.

KGFP

100%

100%

100%

11%

40%

MSM

Holdings

MSM Properties

Sdn Bhd

Astakonas Sdn.

Bhd

100%

100%

Felda Holdings Bhd

Felda Technoplant

Sdn Bhd

FPM Sdn Bhd

Malaysian Cocoa

Manufacturing Sdn

Bhd

Felda Agricultural

Services Sdn Bhd

Felda-Johore

Bulkers Sdn Bhd

Felda Plam

Industries Sdn Bhd

Felda Rubber

Industries Sdn Bhd

Felda

Transport Services

Felda Engineering

Services Sdn Bhd

72%

72.7%

100%

100%

100%

100%

76.9%

71.4%

51%

*Other

Businesses

FPG Oleochemicals

Sdn Bhd

51%

50%

100%

83%

67%

51%

Delima Oil

Products Sdn Bhd

Felda Kernel

Products Sdn Bhd

Felda Vegetable

Oil Products Sdn

Bhd

Felda Marketing

Services Sdn

Bhd

*Other

Businesses

*FGV

Downstream

100%

Felda IFFCO

100%

50%

FGV North

America

100% 100%

TRT Holdings

Inc

TRT Holdings

ETGO Inc

Pontian United

Plantations Berhad

100%

.

PT Landak

Bhakti Palma

PT Temila Agro

Abadi

95%

95%

50%

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1. Competitive Advantages

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Competitive Advantages

1. Third largest oil palm plantation operator in the world 1

5. Largest producer of refined sugar in Malaysia 5

Largest CPO producer in the world 2

2. Strong R&D support 3

Leading global,

integrated and

diversified agri-

business

player

Focused on palm and Malaysia while diversified across select commodities 4

9

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469

391

288

217 217

158 148

140

86

0

50

100

150

200

250

300

350

400

450

500

SimeDarby

GoldenAgri

FGVH AstraAgro

Wilmar SalimIvomas

KLKepong

IOI FirstResources

Notes: (1) Includes LLA, FAS and Pontian oil palm plantation (2) Based on mature hectarage (oil palms aged 4 years and beyond) (3) % of global mature oil palm planted area. In 2012, there was 13.4 million hectares of mature oil palm planted area globally. Source: Frost & Sullivan

Third Largest Oil Palm Plantation Operator in the

World 1

In 2013, FGVH’s FFB production accounted for 5.3% of Malaysia’s total production

Global Market Share by Mature Planted Area(2)

’000s Ha

Peninsular Malaysia

423,464 Ha of Oil Palm Plantation Estates (1)

East Malaysia

Plantation Estates

Our Operations

Sabah

Sarawak

Kedah

Penang

Perak

Kelantan Terengganu

Pahang

Selangor

Malacca

Lahad Datu

Sahabat

Sahabat Complex

Sampadi Complex

Negeri

Sembilan)

Johor

0.6% 1.1% 1.1% 1.2% 1.6% 1.6% 2.1% 2.9% 3.5%

Source: Frost & Sullivan, FGVH, various company annual reports and websites

2012 statistic

%(3)

Total planted area – 361,003 ha (1) FGVH is the third largest oil palm plantation

operator in the world, with a 2.1% market share

(1)

Tawau

Perlis

10

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Access to the CPO Output of the Largest

Producer in the World 2

Source: Oil World, MPOB, various company annual reports and websites

Market

Share (%) 6.2% 4.5% 4.5% 3.6% 2.8%

Notes: (1) Market share is calculated based on statistic figures from MPOB

FHB provides us with access to the downstream oil value chain

MM MT

2012 CPO Production FHB’s Market Share in CPO Production (Malaysia), 2012 (2)

Source:, Oil World, FGVH, MPOB, various company annual reports and websites

17.6% 12.8% 4.6% 3.6% Market

Share (%)

MM MT

(3)

11

3.3

2.4 2.4

1.9

1.5

0

0.5

1

1.5

2

2.5

3

3.5 3.3

2.4

0.86 0.67

0

0.5

1

1.5

2

2.5

3

3.5

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20.5%

20.7%

20.5%20.5%

20.4%

20.5%

20.5%

20.4% 20.4%

20.3%

3.1

3.0

3.3 3.3

3.2

2.8

3.0

3.2

3.4

20.0%

20.1%

20.2%

20.3%

20.4%

20.5%

20.6%

20.7%

20.8%

2009 2010 2011 2012 2013

Our productivity is supported by higher than average yields and extraction rates

Source: Prospectus

section 7 p158

Notes: (1) A small proportion of the FFB produced by the FELDA-leased land is sold to third parties. In 2011, this amounted to 70K MT of FFB (2) Computed by multiplying FFB yield with average CPO extraction rate

Access to the CPO Output of the Largest

Producer in the World (cont’d) 2

19.8

18.8

19.9

19.219.6

19.2

18.0

19.7

18.9 19.0

17

18

19

20

21

2009 2010 2011 2012 2013

Average FGVH FFB Yield Malaysia Palm Oil Board benchmark

MT / Ha

Our FFB Yield Continues Exceeds Malaysian Benchmarks

5.2 4.7 5.1 4.9

4.8 4.8 5.3 5.6

4.9 4.75.4 5.3

0.3 0.20.3

0.3

-4

2

8

14

20

2009 2010 2011 2012

Total: 15.2 MM MT 14.5 MM MT 16.1 MM MT

FFB Supply Balanced Across Multiple Sources

Total Sources of FFB (MM MT)

FELDA-Leased and Managed Land (1) FELDA Small Holders

Third Parties FELDA Agricultural Services

%

CPO Extraction Rates

MM MT

Average CPO extraction rate Malaysia Palm Oil Board benchmark

CPO Production (RHS)

4.1

3.9

4.1

3.9

4.0 3.9

3.7

4.0

3.8 3.9

3.5

3.7

3.9

4.1

4.3

2009 2010 2011 2012 2013

CPO Productivity (3)

MT / Ha

Average CPO per ha of oil palm

plantation estate

Malaysia Palm Oil Board benchmark

16.0 MM MT

12

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R&D Support

Areas of Focus Benefits

Increase yield and efficiency

Reduce production costs

Ensure environmental

sustainability

Maximize profits in the long run

Strengths

Notes: (1) Includes (i) a phosphate transport marker that can be used to detect oil palms with lower phosphate fertilizer requirements and (ii) a Ganoderma

boninsense marker that is intended to be used to develop Ganoderma boninsense-tolerant planting material

(2) Namely, rats, leaf-eating caterpillars, rhinoceros beetle and the fungal pathogen Ganoderma boninense

Oil Palm

Breeding &

Selection

• Active since 1968 via Tun Razak Agricultural Services Center

• Germinated Seeds: Award-winning Felda Yangambi brand

Biotechnology • Research center located in Enstek, Nilai

• Biomolecular marker research

– Filed patents for 2 types of markers(2)

Agronomy &

Crop Protection

Programs

• Focus on four main pests(3) using integrated pest management

with emphasis on biological control

• Production and sale of rat bait

Applied

Technology • Electronics and wireless sensor network technology

• Geographical information systems

Through, Felda Agricultural Services(1)

Downstream

R&D • Focuses on food and non-food product development.

3

13

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Rationale for crop diversification across the value chain

Complementary crops: palm and rubber

Natural hedge against commodity volatility

Downstream businesses protect upstream margins

Revenue Split by Segment (1)

Section 8, p330 Section 8, 329

4 Focused on Palm and Malaysia While Diversified Across Select

Commodities ...

% Revenue

(palm oil and

rubber)

RM MM

17% 8% 1% 100% 74%

Revenue Split by Geography (2)

Notes: (1) FYE 2013 Revenue Split by Segment (consolidated) (2) 2012 Annual report (before consolidation)

Key benefits

Diversify macroeconomic exposure / risk

Broader reach to global customers and end-customers

14

0

2000

4000

6000

8000

10000

12000

14000

Plantation Sugar Downstream Others Total

Malaysia 70%

China 9%

Asia 7%

US & Canada

4% Others

10%

Revenue

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Our annual sugar production capacity is over 1.1 MM MT

Sugar Assets Owned by FGVH

Notes: (1) Exchange rate of USD1 = MYR3.08 as of 28 Sep 2013 (Bloomberg)

Leading Market Share in Malaysia in 2012

Source: Frost & Sullivan

MSM56.9%

Central Sugar

Refinery

43.1%

Leading Market Share in Malaysia of 57% in 2012

% of Total Production Volume

• 100% acquired in 2010

• IPO in June 2011 on Bursa Malaysia

(KLSE:MSM)

• Market capitalization of MYR3.5 billion as at

17 February 2014

• Share price as at 17 February 2014 RM5.00

51%

Largest Producer of Refined Sugar in Malaysia 5

15

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Full integration of FGV & FHB operations across the palm and rubber value chain

• 71 palm oil mills

– 20.7 MM MT of

annual milling

capacity

• 3.3 MM MT of CPO

produced

• 5 palm oil refineries

through JV

• Soy & canola

crushing – Canada

• Oleochemical facility

in US

• Biodiesel facility in

Kuantan

• Plantation land in

Malaysia and

Indonesia (incl. JV)

• Production of

packed goods for

consumers and food

services industry

• Production of

1.5 MM MT of RBD

products

Upstream Downstream & Logistics

• 10 bulking

installations

– 486 storage tanks

with 752,250 MT

capacity

• 2 warehouses

– 88,000 MT storage

capacity

• 7 distribution depots

• 437 lorry tankers &

cargoes

Plantations &

Support Mills Refineries, Crushing,

Oleochemical & Trading Bulking & Logistics

Packed Consumer Goods

• 7 palm oil refineries in

Malaysia & Pakistan

with annual refining

capacity of over 2.5

million MT

• 4 kernel crushing

plants in Malaysia

• One oleochemical

plant in Kuantan

through JV

• 11 rubber processing

facilities in 3 countries

with total annual

processing capacity of

257,600 MT

FHB

• 12,611 ha of oil palm

plantation for R&D

purposes

• R&D support for

upstream &

downstream palm,

rubber & sugar

• High yielding oil

palm seed

production facility

• Production of

fertilizer

Midstream

Milestones (cont’)

16

• 1 palm oil mill

(Pontian United

Plantation.

• 1 Kernel crushing

plant (not in

operation)

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Plantation Estates

• 335,336 ha of oil palm

plantations in

Malaysia

• 38,775 ha of oil palm

plantation in

Indonesia

• Produced 5.0 mil MT

of FFB in 2013

Mills

• 72 palm oil mills

• 20.7 mil MT of annual

milling capacity

• 3.2 mil MT of CPO

produced in 2013

Refineries

• 5 palm oil refineries

through JV

• 7 palm oil refineries

• 5.2 mil MT capacity

(including JVs )

Logistics

• 10 bulking installations

• 486 storage tanks with

752,250 MT capacity

• 2 warehouses - 88,000

MT storage capacity

• 7 distribution depots

• Transportation services

– 251 palm oil tanker

and 186 lorries.

RBD Products & Packed Goods

• 4.3 mil MT capacity if

RBD products via JV

and associates.

• 1.3 mil MT capacity of

packed products via JV

and associates.

Oleochemicals

• 2 oleochemical plants

through JV

• Located in Kuantan,

M’sia and Quincy, MA.

USA

• Product: Methyl esters,

fatty alcohols and

glycerin

Upstream Midstream Downstream

17

Integrated Across Palm Value Chain Manufacturing , Logistics and Others (MLO)

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18

1. Industry Overview

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Palm oil is the largest and fasting growing vegetable oil

Palm oil is the highest yielding oil crops

Palm oil is the largest and fastest growing vegetable oil, contributing to ~1/3 of overall vegetable oil production

Palm oil alone has contributed to almost 50% of overall growth in vegetable oils over the last 5 years

1. Exclude yield from palm kernel Source: Foreign Agricultural Service (FAS), USDA; JP Morgan

4 3 2 1 0

Corn 0.2

Cotton 0.3

Soybean 0.4

Sunflower 0.9

Peanut 1.0

Rapeseed 1.1

Olive 1.2

Coconut 2.7

Palm1 4.0

Oil yield per hectare (MT/ha)

Sunflower

Palm kernel

Peanut

Cotton

Coconut

Olive

2010

146.4

47.7

41.6

23.1

11.5

2009

140.3

45.9

38.9

22.4

11.7

2008

133.7

44.0

35.9

20.5

12.0

2007

128.6

41.1

37.8

18.4

10.0

2006

121.8

37.3

36.5

17.1

Total global vegetable oil production (million MT)

2005

118.9

35.8

34.9

150

100 10.7

50

0

Palm

Soybean

Rapeseed

17.4

10.6

2.4%

1.1%

1.6%

0.8%

5.1%

4.8%

5.0%

3.1%

5.9%

CAGR ('05-'11) xx%

19

2011

153.2

50.6

42.0

23.4

14.1

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Palm oil industry has grown at over 18% CAGR

Total market

size (USD Bn)

1. EIU Data on CPO Spot price in USD Source: USDA FAS (world production), MPOB (prices), EIA (oil prices), James Fry (LMC) CPO price analysis presentation

Palm Oil market value 2005-2012 (USD Bn)

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011 2012

+18%

15 18

32

42

31

42

53

48

20

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Growth has been driven by both volume and value

Palm oil prices have grown by 9% p.a. between 2000 and 2012

Palm oil supply has grown by 7% p.a. between 2000 and 2012

1. EIU Data on CPO Spot price in USD Source: USDA FAS (world production), MPOB (prices), EIA (oil prices), James Fry (LMC) CPO price analysis presentation

World palm oil production (Mln Mt)

60

40

20

0

+7%

2010

48

2009

46

2008

44

2007

41

2006

37

2005

36

2004

34

2003

30

2002

28

2001

25

2000

24

CPO price (US$/t)1

1200

900

600

300

0

+9%

2010

901

2009

683

2008

949

2007

780

2006

479

2005

422

2004

471

2003

443

2002

390

2001

286

2000

310

21

2011 2012

52

55

2011 2012

1022

878

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Malaysia and Indonesia are the dominant producers Demand is global but increasingly concentrated in emerging markets

...while consumption less concentrated Upstream is concentrated in SEA...

Top Palm Oil producing Countries in 2012 (Mln Mt) Domestic Palm Oil Consumption Countries in 2012 (Mln Mt)

Source: USDA 22

0

10

20

30

40

50

60

28.5

19.0 2.1

1.0 0.9 3.9 55.3

Top 2 producing

countries account for

~86% of total

production

0

10

20

30

40

50

60

8.4

7.8

6.3

5.6

3.1 2.2

1.6 1.4

1.2

16.1 53.7 Top 3 consuming

countries account for

~40% of total

demand

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23

1. Felda Global Ventures Holdings (FGV) and

Economic Transformation Programme

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12 New Key Economic Areas: Palm Oil as Key Driver of Malaysia Economic Activity

Advantages of Malaysia Palm Oil Industry • Fourth largest contributor to the

Malaysian Gross National Income (GNI) – 8%

• 100 years of experience

• Strong market leadership in terms of productivity and R&D

Propelling Malaysia Towards Becoming a High-Income Developed Nation

Middle Income Nation

6% p.a. Growth Rate

High Income Nation

24

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25

Upstream

1. Accelerating the replanting of oil palm

2. Improving fresh fruit bunch yield

3. Improving worker productivity

4. Increasing the oil extraction rate

5. Developing biogas at palm oil mill

Downstream

6. Developing oleo derivatives

7. Commercializing second generation biofuels

8. Expediting growth in food-and health-based downstream

FGV

FGV Towards Economic Transformation Programme (ETP)

In transforming Malaysia’s palm oil industry and in driving the productivity improvement, the following items are the focus of the ETP:

Entry Point Projects (EPP)

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1. Growth Drivers

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Malaysia exports 90% of palm oil production which contributes 41% to the total

world palm oil exports

Source: USDA

Industry employs directly ~570 000 workers and accounts for ~7% of national GDP

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0

5

10

15

20

25

30

35

40

45

2009 2010 2011 2012

Million MT

Malaysia Total

Malaysian Palm Oil Exports Vs

World Palm Oil Exports

41.7

17.2

39.0

16.6

36.9

16.6

35.5

15.5

0

2

4

6

8

10

12

14

16

18

20

2009 2010 2011 2012

Million MT

Exports Total Production

Malaysian Palm Oil Production and Exports

19.0 18.2 18.2

17.8

15.5 16.6 16.6

17.2

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0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0

20

40

60

80

100

120

140

160

180

200

1990 2000 2010 2012

Palm Oil Consumption Total Oil & Fats Consumption

World Population (RHS)

Key Growth Driver

Growth Drivers Demand for food and edible vegetable oils

– Population growth

– Economic growth

– Increasing world urbanization rate

World Palm Oil Consumption

Source: USDA, MPOC

183.6

171.7

113.8

80.9

51.7 45.6

21.8

11.1

Million MT Billion

Palm Oil 28%

Soybean Oil 23%

Sunflower Oil 8%

Rapeseed Oil 13%

Others 28%

2012 World Vegetable Oil Consumption

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1. Appendix

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Palm Oil

What is it used for?

• Palm fruit oil is consumed worldwide in more than 100 countries. In some parts of the world, palm fruit oil

is often still consumed in its unrefined state, as an ingredient of traditional dishes, where it contributes its

characteristic golden red color and unique flavor. However, to most users, palm oil is more familiar as a

refined vegetable oil product purchased at their local store and incorporated into their everyday foods.

• Foods with palm oil elements are baked goods, instant noodles, baby formula, cake mixes, breakfast bars,

potato chips, crackers and other snacks such as French fries.

• Of the oils and fats on the market, palm fruit oil serves well many of might best meet today’s consumers

criteria. It is healthful, abundantly available, relatively inexpensive, and technically suitable for most food

products.

• Palm oil has become the largest internationally traded vegetable oil in the world proving its acceptance in

the global market.

• About 90 percent of palm oil currently goes into food and consumer goods applications and the remaining

10 percent goes into non-food applications.

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Oil Palm is cultivated in 43 countries throughout the World

Ripe fresh fruit bunch (FFB) harvested

Oil palm trees

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FFB and Palm Fruit

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FFB Bunch weight : 20-30kg Fruits per bunch : 2500 - 3000

Fruitlets Opened fruitlet

Mesocarp (Palm Oil) Kernel (Palm

Kernel Oil)

Shell

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Harvesting process

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Transportation of FFB to mill

Delivered to mill within 24 hours

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Mill and Crushing Plant

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Mill Crushing Plant

Crushing Plant Tresher Storage tanks

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By products of FFB

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Shell

Mesocarp

Fibre

Compost Empty Bunch /

Shredded Efb

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Legend:

Product

Process

Milling

Edible Oils & Fats

Oleochemicals Biodiesel

Industrial and Consumer Products

Palm Kernel

CPKO

Crushing

RBD PK Olein

RBD PKO

RBD Palm Olein

RBD Palm Stearin

RBD PO

Refining

FFB

EFB

Biomass

By-product Crushing Refining

Refining

Crushing

RBD PK Stearin

CPO

Refining

Refining & Fractionation

Refining

Refining & Fractionation

Overview of Palm Oil Value Chain

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RBD Stearin

RBD Palm stearin is used in the confectionery and bakery as well as soap industry. Eg. Margarine, shortening, vanaspati

RBD Palm Olein is the liquid fraction obtained by the fractionation of palm oil after crystallization at controlled temperatures. It is especially suitable for frying and cooking. Main applications of RBD Palm Olein include salad and cooking oils in households, industrial frying fat of instant noodles, potato chips, doughnuts and condensed milk.

Palm Oil Application

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