New Britain Palm Oil Ltd · 7 New Britain Palm Oil Ltd 2010 • Gross margin of 49% (2008: 53%) is...

New BritainPalm Oil Ltd2010

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Preliminary Results 2009&

Proposed acquisition of 26,000 hectares

of established plantations

February 2010

2

Kumbango refinery, New Britain, PNG

3


Introduction

Large established plantation group, producing palm oil, founded in 1967 •

Growth delivered traditionally through organic expansion, and more recently through acquisition •

Established EU customer base, including United Biscuits and Ferrero Group •

Full vertical integration focused on sustainability and traceability •

One of the highest palm oil product yielding companies in the industry •

Presenting an acquisition to deliver an immediate increase of over 50% in established plantation assets •

48,907 hectares planted, and now proposing to acquire an additional 26,292... •

...to give a land bank of over 113,000 ha•

4

Plantation areas in West New Britain, showing nursery areas and flat topography

5


Solid Results.. .

2009 2008FFB processed (million tonnes) 1.47 1.27

CPO / PKO produced (tonnes) 366,000 320,000

Average CPO price achieved ($ / tonne) $710 $926

2009 2008Revenue ($m) 323.8 352.2

EBITDA ($m) 114.2 124.2

Profit before tax* ($m) 85.3 106.3

Earnings per share (US ¢) 41.8 51.7

Dividend per share (US ¢) 28.0 41.8

* Excluding IAS 41

6

NBPOL storage facility at Kimbe

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Gross margin of 49% (2008: 53%) is pleasing given lower pricing environment in 2009 •

Group had cash holdings at the end of 2009 of $13.5m, with a further $51.9m in trade oil debtors, which has subsequently •been received

A record 1.47m tonnes of oil palm fruit processed (2008: 1.27m tonnes) •

Average 2009 CPO sales price of $710/tonne (2008: $926), against a backdrop of the average CIF Rotterdam price of $683/•tonne

At the end of 2009 forward sales of c.38% of 2010 production (134,000 tonnes of CPO) had been made at an average price •of $719/tonne

As at 22 February this figure was c.164,000tonnes at an average price of $746/tonne •

Construction of UK palm oil refinery is nearing completion, first shipment in transit from PNG •

Upgrade to various mills in PNG will increase capacity to cover current organic growth•

Solid Results.. .

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Higaturu, CTP

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. . . and a Transformational Acquisition

Entered into SPA to acquire CTP(PNG) Ltd •

Consideration of $175m •

Total planted hectarage to be acquired: 26,292 ha •

To be financed from cash resources and new • corporate facilities

SCB and ANZ providing facility with attractive • terms at market rates

Retaining a conservative balance sheet without • equity dilution

Class 1 Transaction requiring shareholder • vote

Kulim (51% shareholder) has provided an • irrevocable

Expected completion mid-April •

IPBC and NIDC to retain shareholding•

CTP (PNG) Ltd

80%20%

IPBC*1

Other assets

Poliamba Ltd

Poliamba Estates Higaturu Estates Milne Bay Estates

81.29%

NIDC*2

18.71%

• total planted area: 5,689• location: New Ireland, PNG• no. mills: 1

• total planted area: 8,974• location: Western PNG• no. mills: 3

• total planted area: 11,629• location: Western PNG• no. mills: 1

CTP HOLDINGS PTE Limited

*1 Independent Public Business Corporation*2 New Ireland Development Corporation

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CTP assets: top and left, Mamba Mill at Higaturu; middle, housing at Higaturu; right, labour housing at Nalik Estate, Poliamba

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CTP Financial Summary

2009 2008

Total CPO produced (tonnes) 156,679 160,880

Revenue ($m) 98.4 92.4

Profit before tax (pre-IAS41 adjustment) ($m) 18.1 8.4

Year ended 31 May

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Oil palm nursery, West New Britain

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CTP - History & Location

Higaturu first developed in 1976 replacing •a cocoa project via a JV with the British Commonwealth Development Corporation (CDC), with funding from the World Bank

Milne Bay first began in 1985, again in •conjunction with CDC and the World Bank Poliamba was the most recent •development, mostly completed in 1992, brought into the CDC group in 1998

In October 2005 Cargill Inc (through its •70% owned subsidiary) acquired 80% of CTP from CDC Group plc

PNG is a Commonwealth country, •independent and democratic since 1975

Stable, no history of government •intervention in oil palm sector

Rating similar to South Africa, China, •Brazil

PAPUA NEW GUINEA

NEW BRITAIN

NEW IRELAND

SOLOMONISLANDS

AUSTRALIA

•Kimbe

Main area of NBPOL operation

Lae•

Ramu Agri-Industries Ltd- acquired in Oct 2008 •

CTP, Milne Bay11,629 hectares

•

CTP, Higaturu8,977 hectares

•

CTP, Poliamba5,689 hectares

GPPOL- acquired in April 2005

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Palm Kernel Oil (PKO) production facilities, West New Britain

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Rationale for Transaction

At time of IPO: Key strategic objective to double •its plantation area within 7 to 8 years

30,000

35,000

0

15,000

20,000

25,000

2004 2006

Hec

tare

s

2005 2007

10,000

5,000

40,000

45,000

Mature Palm Plantations

2008

55,000

60,000

50,000

65,000

70,000

2009 2009NBPOL &

CTP combined

CAGR: 18.9%

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West New Britain, Kumbango refinery and mill

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Output of CPO

CTP will add an immediate •increase in CPO production of c. 160,000 tonnes per year

An approximate increase in output •of 50%

This increase will allow synergies •and economies to be delivered in shipping and raw material purchase

Geographic focus and specialism •maintained to leverage management’s track record

Potential to meet RSPO •guidelines of the new production

Crude Palm Oil (CPO) Produced

2004 20062005 20082007

200,000

240,000

80,000

120,000

160,000

Tonn

es C

PO

40,000

280,000

320,000

360,000

400,000

440,000

2009

CAGR: 20.6%

480,000

520,000

2009NBPOL &

CTP combined

0

560,000

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The controlled cultivation of oil palms in the nursery contributes to NBPOL’s successful replanting programme and relatively young oil palm age profile

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Valuation Metrics

$21,400

$8,670

CTP NBPOL

25,000

20,000

15,000

10,000

5,000

0

EV ($) / Hectare

EV

($) /

Ha

1.6

1.4

1.2

1.0

0.8

0.6

0.4

0.2

0NBPOL - Pre-transaction NBPOL - Post-transaction

0.4

1.6

Net Debt / EBITDA

Net

Deb

t / E

BIT

DA

1.8

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The acquisition of CTP will allow the enlarged group to make use of larger ships and benefit from economies of scale in shipping product to its EU market

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Synergy & Improvement Areas

Fertiliser application strategies •

Shipping optimisation •

Workforce management •

Infrastructure improvement, especially related to estate access•

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Dami Oil Palm Research Station is one of the world´s largest producer of oil palm seeds, and is proud of its success in improving the genetic stock

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Other Key Metrics of CTP

c. 8,000 staff •

5 oil mills •

3 export terminals •

>15,000 hectares of outgrowers•

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NBPOL and RAIL maintain a stock of cattle (9,729 hectares of own cattle growing pasture) utilising Palm Kernel Expeller, a high protein co-product of palm oil production

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NBPOL Today

Palm Oil Sales

Seed Sales

Cattle Production

Revenue contribution

Plantations • Land bank 85,000 ha• More than 50,000 hectares under NBPOL

cultivation• More than 25,000 mature hectares cultivated

by small-holders supplying NBPOL

Milling and Refining• 7 Oil mills in Group (6 in operation, 1 in

construction)• 2 Refineries

Infrastructure• c.60,000 tonnes / oil storage capacity• Trucking transport fleet• Housing• Pumping facilities

• Highly respected plant breeding research and development

• Vital for success of wider business• Growing customer base around the

world• NBPOL is one of the world’s largest

private seed producers

• Integrated with the palm oil plantation• Important for the protein constrained

local community

RAIL• 1 sugar mill• 1 Ethanol plant• 13,500 Head of cattle

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The Liverpool refinery is now nearing completion, staffing is in place and preparations are being made for the first CPO shipment, which is currently in transit

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Other Asset Developments

Construction nearing completion •

Staffing in place •

Commence operations during spring •2010

Key contract won with United Biscuits •

Captures greater share of margin for •NBPOL

First palm oil refinery in the EU to have a •fully segregated supply chain

For the first time being able to guarantee •fully traceable, sustainable palm oil direct from the plantation to the EU consumer

Acquired in October 2008 •

c.30,000 hectares of land •

c. 4,500 hectares of oil palm •

8,120 hectares of sugar cane •

Oil palm planting and optimisation •continues

Extremely high priced sugar market •creating a positive outlook

Ramu Agri Industries Ltd (RAIL)Liverpool Refinery

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Breeding programme at DAMI

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CPO Pricing Update

400

450

500

550

600

650

700

750

800

850

900

950

1,000

1,050

1,100

1,150

1,200

1,250

1,300

1,350

1,400

1,450

1,500

J-06 A-06 J-06 O-06 J-07 A-07 J-07 O-07 J-08 A-08 J-08 O-08 J-09 A-09 J-09 O-09 J-10

CPO CIF Rotterdam, 2nd month forward, US$/T

CPO Pricing Update

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Delivering FFB to Numundo Mill, West New Britain

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CPO Price Data

1,600

1,400

1,200

1,000

800

600

400

200

0J-06 A-06 J-06 O-06 J-07 A-07 J-07 O-07 J-08 A-08 J-08 O-08 J-09 A-09 J-09 O-09 J-10

0

100

200

300

400

500

600

700

CPO CIF Rotterdam (US$/MT)NBPOL share price (GBp)

NB

POL

shar

e pr

ice

(GB

p)

CPO

$ /

MT

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Empty Fruit Bunch is re-applied to the field to supplement fertiliser application after processing

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Production Growth

1,100,000

1,200,000

800,000

900,000

1,000,000

2004 2006

Tonn

es F

FB

2005

700,000

Total Fresh Fruit Bunch (FFB) Processed

1,300,000

2007600,000

2008

1,400,000

1,500,000

2009

CAGR: 10.3%

2004 20062005 20082007

260,000

280,000

200,000

220,000

240,000

Tonn

es C

PO

180,000

Crude Palm Oil (CPO) Produced

300,000

320,000

340,000

360,000

380,000

2009

CAGR: 12.3%

30,000

31,000

23,000

24,000

27,000

28,000

29,000

2004 2006

Hec

tare

s

2005 2007

26,000

25,000

32,000

33,000

Mature Palm Plantations

2008

35,000

36,000

34,000

37,000

38,000

39,000

2009

40,000

41,000

CAGR:

9.7

%

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Inter-cropping of oil palm with cattle pasture

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Sustainability

NBPOL has been instrumental in developing• the Roundtable on Sustainable Palm Oil (www.RSPO.org)

The RSPO has over 300 members including WWF, the Zoological Society of London and Oxfam•

NBPOL is the first RSPO member to be accredited as sustainable across its entire operation by an RSPO • accredited auditor - BSI

NBPOL has control over its harvesting, milling, refining, transportation and shipping, it can trace individual • shipments to the EU back to source

With the UK refinery it has a unique fully sustainable and traceable supply chain to the EU •

Potential future margin enhancement through sustainability and traceability credentials •

Key sales contracts achieved with Ferrero Group and United Biscuits, driven partly by NBPOL’s sustainability • and traceability credentials

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Social awareness, support, and interaction is vital in PNG, especially as NBPOL provides housing, healthcare, and education to a large proportion of its approximate 11,500 permanent employees.

NBPOL takes its responsibilities to its employees extremely seriously and recognises its obligations to the workforce which rely heavily on the company

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Conclusions

Solid year of performance and output growth•

Palm oil market moving toward sustainability and traceability as key aspects - NBPOL is ideally placed •

Presenting a transformational acquisition adding over 50% to NBPOL’s established plantation area •

Maintaining a stable balance sheet without equity dilution•

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The information contained in this document is for information only. No representations or warranties, express or implied, •are given by the Company or any person connected with the Company as to the fairness, accuracy or completeness of the information or opinions contained in this document, any presentation made in conjunction herewith or the accompanying materials and no liability is accepted in respect thereof, to the extent permitted by law.

To the fullest extent permitted by law, none of the Company, Akur Partners LLP or any other party or any of their respective •subsidiary undertakings or affiliates or any of such person’s officers or employees, advisors or other representatives, accepts any liability whatsoever (whether in negligence or otherwise) arising directly or indirectly from the use of this document.

This document is being furnished to you on a confidential basis and may not be disclosed, reproduced or redistributed, in •whole or in part, by any medium or in any form to any other person for any purpose without the Company’s prior written consent. You shall treat and safeguard as strictly private and confidential all information contained in this document and take all reasonable steps to preserve such confidentiality. You shall not use this document or the information contained therein in any manner detrimental to the Company.

This document has been prepared for information purposes only and should not be relied upon, or form the basis for any •decision or action, by any person.

This document contains forward-looking statements that involve substantial risks and uncertainties and actual results and •development may differ materially from those expressed or implied by these statements by a variety of factors.

By accepting this document and attending the presentation you agree to be bound by the foregoing limitations. •

24 February 2010

Disclaimer

New BritainPalm Oil Ltd2010 www.nbpol.com.pg

Phone: +44 (0)20 7472 5936

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