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2
Mission Statement
“To be a low-cost producer of sustainable crude palm oil in Africa through the
reactivation and development of its plantations and agricultural land position in
Liberia”
PRESENTATION TEAM
3
Key Data
43.2% Henderson
Mirabaud
Blackrock
Other
2.6%
2.9% 6.8%
3.2% 4
Investment Overview
Land position of c.169,000 hectares suitable for sustainable crude palm oil (‘CPO’)
10 year target of over 50,000 hectares of new plantings producing 250,000 tpa CPO
increasing to over 100,000 hectares
Liberia as a newly politically stable country is a fast growing investment destination for
multi-national corporations (Arcelor Mittal, Sime Darby)
Highly experienced management with proven track record in oil palm developments
“Palm oil is the most widely produced edible oil in the world, with demand increasing”
5
Board & Senior Management
Michael Frayne 15 years of experience in the resources sector, successfully establishing several UK and Australian
Executive Chairman listed companies - founding director of Asia Energy plc
Peter Bayliss Over 20 years of experience in the oil palm sector, including 8 years in PNG with New Britain Palm Oil
Development Ltd. Significant experience in large scale plantation development, particularly in
Managing Director Indonesia with SA SIPEF NV
Geoff Brown Former Chairman of New Britain Palm Oil & Plantations Director of Harrisons & Crosfield plc. Over 40
years of experience in plantation management, including 10+ in Malaysia and 20+ in Indonesia as
Plantations Director Managing Director of P.T. London Sumatra Indonesia
Joseph Jaoudi A qualified engineer who owned and operated the Palm Bay plantation in Liberia for over 10 years. He
Non Executive Director also managed other significant businesses in Liberia and USA including biomass power generation
Anthony Samaha Chartered accountant ex Ernst & Young, experience in due diligence, capital raising, valuations, and
Non Executive Director mergers and acquisitions. Anthony is a director of AIM listed, Altona Energy plc
Tim Daniel Qualified Chartered Accountant ex KPMG. Tim subsequently worked as an investment analyst with a
Chief Financial Officer London-based hedge fund, focusing on the high yield bond market
Alan Yancy 30 years extensive experience of Liberian business and politics and held senior positions in the
Manager Corporate Affairs Liberian Sugar Corporation for 7 years
Gilbert Netto Over 30 years experience in the oil palm sector. Experienced in all aspects of the oil palm production
Group Manager cycle from the planning and establishment of new estates through to the management of mature
plantings particularly in West Africa
New stable political regime under Ellen Johnson Sirleaf (US backed)
Developed in tandem with active out growers programme; generating local support
“...China and the United States are investing in Liberia in a big way... We cannot wait until
everything is perfect and then decide to invest. By then it will be too late.”
Ahmad Zubir Murshid, Chief Executive of Sime Darby (November 2009) 9
Initial 12 Months
Modipalm has more than 30 years experience manufacturing plant and machinery,
equipment and parts for palm oil mills
11
Mill Construction
12
Seed Nursery
13
Social Contribution
14
Development Milestones
Expand nurseries
Strategic targets: 50,000 hectares of oil palm planted within 10 years & CPO production of
250,000 tpa increasing to 100,000 ha planted - (current palm oil price $US900 CIF Rotterdam) 15
Sustainability
Existing plantations are based on previously logged land so will not cause
degradation to primary forested areas in Liberia.
Several large companies, including Sainsbury’s and Unilever, are now looking to
develop sustainable palm oil and are active with RSPO
“It is increasingly difficult to acquire arable plantation land in Asia and thus it is imperative
that new frontiers be sought to meet increasing demand.”
Chief Executive of Sime Darby, 2009
16
Peer Comparisons
Name Ticker Mkt Cap EV Plantation Locations Mature EV/ha FFB Prod. FFB yield Other
US$m US$m Hectares US$/ha tonnes tonne/ha assets
Production
New Britain Palm NBPO LN 1,329.8 1,398.1 Papua New Guinea 66,304 21,087 1,525,150 23.0 Refinery
Oil
REA Holdings RE/LN 318.5 393.3 Indonesia 18,736 20,994 490,178 26.2 Coal
Anglo-Eastern AEP LN 348.5 321.4 Indonesia/ Malaysia 28,133 11,426 506,417 18.0 Rubber
Plantations
MP Evans Group MPE LN 306.6 292.8 Indonesia 15,368 19,054 258,740 16.8 Beef,
rubber
Development Development
Hectares
Extensive land position (c.169,000 hectares) with proven suitability for sustainable cultivation of oil
palms for the production of palm oil in Liberia
Low cost production environment with immediate access to sizeable West African palm oil market
Palm oil majors including Sime Darby now operating in Liberia – reaffirms potential of the region
Price of CPO expected to remain robust in the short and medium term
Experienced management team with expertise in developing large scale oil palm plantations
Register has range of large institutional shareholders and the Siva Group – strong balance sheet
19
Contacts
Michael Frayne
Chairman
Equatorial Palm Oil Plc
94 Jermyn Street
London SW1Y 6JE
Tel: +44 (0)20 7766 7500
Fax: +44 (0)20 7766 7599
Mobile: +44 (0)7788 724 010
mjf@epoil.co.uk
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APPENDIX
Recent Press
22
Recent Press
23
Recent Press
24
Recent Press
25
Recent Press
“As US deadlines for the banning of restaurant use of cooking oils containing trans-
fats approaches, palm oil producers' confidence is rising that 2010 will deliver higher
prices. Major grower IOI Corp Palm last week announced plantation expansions.
Palm has been steady around US$715 a tonne for the past month or so, a stability
which is attracting strong Pakistan and Middle East buying.”
26
Agreements
27
Why Agriculture? Why Palm Oil?
Per Capita Arable Land for Agriculture
Ha Arable Land per Person Source: FAO, Potashcorp Import of CPO into West Africa is currently
0.6
over 800,000 tonnes per annum and
0.5 demand continues to grow
0.4 Palm oil has recently overtaken soya as the
most produced edible vegetable oil
0.3
worldwide
0.2 In 2007, for the first time in history the global
0.1 urban population exceeded the rural
population
0
1950 1960 1970 1980 1990 2000 2010F 2020F If the same amount of food were to be
produced today, with the yields of 1961,
then the world would require an additional
970 million ha, or more than the total land
area of the United States
In the last 40 years, the area of global
agricultural land has grown by 10%
“It is increasingly difficult to acquire arable
plantation land in Asia and thus it is
imperative that new frontiers be sought to
meet increasing demand” - Ahmad Zubir
Murshid, Chief Executive of Sime Darby
28
Palm Oil
Extracted from the reddish palm fruit which is harvested and pressed into crude palm
oil (‘CPO’)
80,000 18%
75,000 17%
70,000 16%
65,000 15%
60,000 14%
55,000 13%
Consumption, mT(000's)
Annual Growth Rate, %
50,000 12%
45,000 11%
40,000 10%
35,000 9%
30,000 8%
25,000 7%
20,000 6%
15,000 5%
10,000 4%
5,000 3%
0 2%
Developed Economy Food Demand, mT (000s) Industrial & Residual Demand, mT (000s)
Developing Economy Food Demand, mT (000s) Annual Growth Rates Source: USDA, First Capitol Risk Management
Palm Oil Demand in Africa 1996‐2008
5,000
4,500
4,000
3,500
3,000
mT (1000's)
2,500
2,000
1,500
1,000
500
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Food Use Consumption Industrial Consumption
Source: USDA FAS
13% $975
12% $900
11% $825
10% $750
9% $675
Stocks to Use, %
8% $600
Price, USD/mT
7% $525
6% $450
5% $375
4% $300
3% $225
2% $150
1% $75
0% $0
EPO expects to be among the lowest cost producers of edible oils in the world
in terms of USD per tonnes
US A S o y O il 460
M a la ys ia n
240
P alm Oil
B razil S o y O il 230
E P O Int e rna l
Est.
Indo ne sia
165
P alm Oil
33
Out-grower Programme
34
Liberia Risk Mitigation
Liberia has worked hard to create favourable economic conditions that is attracting
increasing levels of foreign investment
However given history, risk mitigation is prudent protect such an investment
The Multi-lateral Investment Guarantee Agency (MIGA), www.miga.org, a division of
the World Bank provides comprehensive political risk insurance for foreign investment
into Liberia
Overseas Private Investment Corporation (OPIC), www.opic.gov, an independent US
government agency will provide similar cover as well as providing significant debt
finance to investments
OPIC has a specific directive to actively pursue investment opportunities in Liberia
however typically require the investment vehicle is majority owned by US entities
Managers from both MIGA and OPIC are available to discuss their stated interest in
being involved in Equatorial Palm Oil’s project in Liberia
35