Annual results of the SIPEF group per 31 December 2022

February 16, 2023

Record performance year for the SIPEF group

• Total Group production of palm oil increased by 5.1% compared with previous year.

• The combination of excellent productions and selling prices resulted in an outstanding financial performance:

  - Net recurring result, share of the Group, after tax, amounted to KUSD 108 157, an increase of 30.7%, compared with KUSD 82 746 last year.

  - Net recurring profit per share increased by 32.0%, to a record amount of USD 10.40.

  - Operational cash flow reached KUSD 165 295, a rise with 3.1 % on previous year.

  - Net financial position for the Group turned  positive, even after capital expenditures of KUSD 79 294, mainly related to the continued expansion in South Sumatra.

  - Sales exceeded USD 500 million, equity rose above USD 800 million and total assets surpassed USD 1 billion, all historical milestones for the Group.

• In line with the 30% payout ratio of previous years, the board of directors proposes to increase the gross dividend per share  by 50%, from EUR 2.00 to EUR 3.00, payable on 5 July 2023.

• Cultivated areas in Musi Rawas continued to grow in compliance with RSPO, by 1 453 hectares to a total area of 16 423 hectares. The Dendymarker own plantations are now fully replanted.

• SIPEF can look forward to another strong performance year, thanks to increasing annual production volumes and controlled unit production costs. The recurring result 2023 will highly depend on the further evolution of the palm oil prices.SIPEF started a project, together with a licensed assessor, to develop a balanced oil palm landscape approach for smallholders and customary landowners around Hargy Oil Palms’ operations in Papua New Guinea.

• SIPEF was the first RSPO member to work with the Dispute Settlement Facility designed by RSPO, engaging with its stakeholders as an important part of its human right due diligence and grievance process.