Corporate Presentation - Musim Mas Group Centre...Musim Mas Professorship in Sustainability Program...

© 2016 Musim Mas Holdings Pte. Ltd. Co.

About Musim Mas

Corporate Presentation


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History

1932

1970

1988

2003

2015

Started as a modest soap factory

Started the first palm oil refinery in Indonesia

Started plantation in Rantau Prapat,

North Sumatra

Started Oleochemicals plant

Fully integrated palm oil corporation

across 13 countries


Musim Mas at-a-Glance

Headquarter : Singapore Number of countries with operational presence: 13 Number of countries where we sell our products: Global Number of employees: 28,500 people worldwide


Global Footprint

United States

United Kingdom

Germany

The Netherlands

Spain

India

China

Vietnam

Malaysia

Indonesia

Singapore

Italy

Global Footprint

Sales Office

Refinery

Plantation

Oleochemicals plant

Biodiesel

Ethoxylation plant

Derivative products

Storage tank

Legend Brazil


Integrated Business

Plantation Mill Refinery Processing

Plants Logistics

Cultivate

seedlings and

manage oil palm

plantations.

Produce crude

palm oil

from the fruits

( Fresh Fruit

Bunches)

- Merchandise

and ship the

products

globally.

- Tank storage

Process palm oil into different products :

- Cooking oil - Biodiesel

- Oleochemicals - Palm wax

- Specialty fats

- Functional products

UPSTREAM DOWNSTREAM


Product Applications

Industrial

Energy

Personal Care and Household

Food


Leading Market Player

One of the top players in the palm oil industry, with

12% of the global market share

2010

4.9

2012

6.5

2013

6.8

2008

3.9


Sales Volume

Tonnes

Year

8 million

7 million

6 million

5 million

4 million

3 million

2 million

1 million

0

2011

5.5

2014

7.5

2009

5

2015

8.1


Group Sales in 2015

Asia, Oceania &

Middle East

57% Europe &

Africa

33%

GROUP S A L E S

America

10%

Group Division


Chemical tankers, coastal tankers, tugboats, tank storage and barges 34 units; 1000 units of trucks

Oleochemicals/Biodiesel/ Specialty Fats Annual Capacity approx. 3 million tonnes

Annual capacity 9 million tonnes

Developed area 130,000 ha


Group Oil Yield per Hectare

Tonnes per

ha

Year

Industry average

6.5

6

5.5

5

4.5

4

3.5

3

2008 2009 2010 2011 2012 2013 2014

4.57 4.54 4.66 4.65

5.63 5.92

5.67

2007

6.26

2015

6.05


Sustainable Palm

Oil

Musim Mas Sustainability Policy

• Announced on 4th December 2014

• Affirms the Group’s commitment towards sustainable palm oil

Bring benefits

to the

community

No deforestation

of High

Conservation

Value (HCV)

areas and High

Carbon Stock

(HCS) forests

No development

of peatland

regardless of

depth

Fully comply

with local,

national and

international

laws

Establish

traceable

supply chains


Milestones

15

2004 2010 2012 2013 2015

▪ First plantation in Indonesia to attain RSPO1 certification

▪ First in Indonesia to join the RSPO1

• First major group to be 100% RSPO1 certified for all plantations in Indonesia

• First to receive the certification for ISPO2

▪ First smallholder scheme in Indonesia to attain RSPO1 certification

▪ Comprehensive Sustainability Policy extended to third-party suppliers

• Signed on the IPOP4

• Joined the POIG5

1 Roundtable on Sustainable Palm Oil 2 Indonesian Sustainable Palm Oil 3 Environmental Protection Agency Renewable Fuel Standard 4 Indonesia Palm Oil Pledge 5 Palm Oil Innovation Group

2009 2014

▪ One of the two companies in Indonesia obtain the EPA RFS3


RSPO Principles & Criteria

Legal

compliance

Long term

economic

viability

Agricultural

Best

Practices

Continuous

improvement

Responsible

new planting

Local

communities

and

employees

Environmental

responsibility

Transparency


Palm Oil Innovation Group (POIG)

• We joined POIG on 16 November 2015.

• Other POIG members include sustainability leaders such as

Agropalma and Daabon, Danone and Ferrero, as well as

NGOs such as Forest Peoples Programme, Greenpeace,

Rainforest Action Network and WWF.

• Members are committed to the POIG Charter:

Support the RSPO and innovate on RSPO existing

standards and other critical issues.

Focus on environmental responsibility, communities, and

corporate and product integrity.

Create innovations in the palm oil industry and promote

these innovations.

Break the link between palm oil and deforestation, and

human, land and labour rights violations.



Environmental

Initiatives

Partnerships with NGOs

Elephant Flying Squad Project

Tiger Conservation Project

Orangutan Information Centre & Sumatran Orangutan Society: Orangutan Conservation Project

Orangutan Foundation - Repatriation of orangutan from Thailand to Kalimantan - Release of orangutan project

Rhino Translocation Project



Reduce Greenhouse Gas Emissions

Within own operations

Estate Mill

Refinery Processing

Plants

• No development on primary

forest, HCV and HCS forest

• No new development on peatland

• Zero burning

• Trucks powered by biofuel

• Use biomass as energy feedstock

• Capture methane gas from mill

effluent (all mills)

• Net positive energy balance

• Use biomass as energy feedstock • Use biomass as energy feedstock

• Some of the processing plants

are 100% powered by biomass


Methane Capture Projects

Musim Mas is the first major plantation group with this facility for all

its mills:

• Effluent account for 80% of mill operation’s total emission

• To reduce GHG emission, methane capture system can be installed

but requires substantial capital expenditure.

• With methane capture, mill operation’s emission will be reduced from

65% to 30% of total emission.

• Musim Mas has invested about USD 35 million to equip all its

plantations’ mills with methane capture system.


Zero Discharge Mill

Solid Liquid Gaseous

• Press cake

fibre, empty fruit

bunch fibre and

kernel shells

used as fuel

• Decanter solid

used as fertiliser

• Palm oil mill effluent

undergoes anaerobic

digestion to produce

methane gas

• Palm oil mill effluent

use as organic

fertiliser in plantation

• Boiler chimney

discharge to the

atmosphere is

smoke-free

• Methane gas is

captured as

biogas to power

the housing

complex


Research Collaboration with Universities

• Biodiversity management in oil palm - Princeton University, USA

( Biodiversity Research Project )

• Social impact and management in oil palm - Helsinki University, UNRI, IPB

• High conservation values management in oil palm - Oxford University, UK

• Minimising social environmental impacts - Collaboration with ETH Zurich


Social Initiatives

Indonesia Palm Oil Development for Smallholders


t Indonesia Palm Oil Development for Smallholders Project

Piloted between Musim Mas and the International Finance

Corporation in Rantau Prapat, North Sumatra to help Independent

Smallholders with:

•Enhancing sustainability through adopting good agricultural practices.

•Bettering livelihoods through increasing oil palm yields

•Improving access to markets through attaining certification


Free primary education for all of the workers’

children


Tertiary Education

Multi-purpose building, Faculty of

Economics,

University of North Sumatra, Medan,

North Sumatra

Musim Mas Professorship in Sustainability Program

National University of Singapore, Singapore

Auditorium, Bogor Agricultural

University, Bogor, West Java Province

Library, Tanri Abeng University (TAU)

South Jakarta


Smallholder Initiatives (Voluntary)

Smallholders Oil Palm

Development Programs

(Scheme Smallholders)

Riau South Sumatra Riau West

Sumatra

Central Kalimantan

833 families 762 families 5 villages

Central Kalimantan West Sumatra Riau

1 village 6 villages

Village Oil Palm

Development Program (Village Development Program)


Conclusion

• Musim Mas has about 12% global palm oil market share.

• The Group is committed to sustainability and to conduct its business in an

environmentally appropriate, socially responsible and economically viable

manner.

• The Group believes that the Roundtable on Sustainable Palm Oil (RSPO) is the

best way to push the sustainability agenda. It is also committed to ISCC and

ISPO.

• Musim Mas will continue to engage stakeholders to incorporate their feedback

into the sustainability strategy.


Thank You

Corporate Presentation - Musim Mas Group Centre...Musim Mas Professorship in Sustainability Program...

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