Annual results of the SIPEF group per 31 December 2021

February 17, 2022

Record performance year for the SIPEF group

• Total group production of palm oil increased by 16.7% compared with previous year.
• The palm oil market experienced a steady increase in prices throughout the year.
• The combination of excellent productions and selling prices resulted in outstanding financial performance.
• The net recurring result*, share of the Group, after tax, amounted to KUSD 82 746, compared to KUSD 14 122 last year.
• Including the capital gain of USD 11 million on the sale of PT Melania (Indonesian tea estate and half of the rubber operations) net results, share of the Group, reached KUSD 93 749.
• Operational cash flow reached KUSD 160 311, an increase with 118.8% on previous year.
• Net debt decreased by more than two thirds from KUSD 151 165 to KUSD 49 192.
• Total capital expenditures amounted to KUSD 68 693 and mainly related to the expansion in South Sumatra in Indonesia. Cultivated areas in Musi Rawas grew, in RSPO compliance, by 956 hectares to a total surface of 14 970 hectares. An additional 2 630 hectares were also replanted in the nearby Dendymarker plantation.
• In line with the 30% payout ratio of previous years, the board of directors proposes to increase the gross dividend from EUR 0.35 per share last year to EUR 2.00 per share, payable on 6 July 2022.
• The combination of increasing annual production volumes and a continuing strong palm oil market allows SIPEF to look forward to very satisfactory recurring results.
• 92% of the SIPEF employees and their dependents in Indonesia had been fully vaccinated against covid-19 at the charge of SIPEF by November 2021. A booster program will follow in 2022.
• SIPEF was ranked 4th out of the 350 most influential companies of the commodity sector by ‘Forest 500’ and 9th out of 100 palm oil companies by the ‘Sustainability Policy Transparency Toolkit’ (SPOTT).

*The net recurring result are exclusive of the capital gain of KUSD 11 640 (of which KUSD 11 003 share of the Group)
related to the sale of PT Melania.