11

Company PresentationGolden Agri-Resources LtdMarch 2019

22

DISCLAIMER

This presentation has been prepared by Golden Agri‐Resources Ltd. (“GAR” or “Company”) for informationalpurposes, and may contain projections and forward looking statements that reflect the Company’s currentviews with respect to future events and financial performance. These views are based on current assumptionswhich are subject to various risks and which may change over time. No assurance can be given that futureevents will occur, that projections will be achieved, or that the Company’s assumptions are correct. Actualresults may differ materially from those projected. A prospective investor must make its own independentdecision regarding investment in securities.

Opinions expressed herein reflect the judgement of the Company as of the date of this presentation and maybe subject to change without notice if the Company becomes aware of any information, whether specific tothe Company, its business, or in general, which may have a material impact on any such opinions.

The information is current only as of its date and shall not, under any circumstances, create any implicationthat the information contained therein is correct as of any time subsequent to the date thereof or that therehas been no change in the financial condition or affairs of GAR since such date. This presentation may beupdated from time to time and there is no undertaking by GAR to post any such amendments or supplementson this presentation.

The Company will not be responsible for any consequences resulting from the use of this presentation as wellas the reliance upon any opinion or statement contained herein or for any omission.

© Golden Agri‐Resources Ltd. All rights reserved.

33

CONTENTS

Corporate Overview 41

Key Competitive Strengths 72

Growth Strategy 163

Financial Performance 194

4

CORPORATE OVERVIEW

55

Planted Area (as of 31 Dec 2018)1 : 498,395 haOutput of Palm Products (CPO and PK)

FY 2018 : 3,049,000 MTFY 2017 : 2,724,000 MT

OVERVIEW OF GAR

• Listed on SGX since 1999 •A leading Indonesian plantation group with integrated operations for the production of a broad range of value added palm‐based products

• Increasing presence in destination markets with on shore refining in China and India

Plantation Profile

Key Products

• Cooking oil• Margarine• Shortening• Specialty fats• Stearin• Oleo‐chemicals

• Crude palm oil (CPO)• Palm kernel (PK)• Palm kernel oil (PKO)• Palm kernel meal• Soybean oil and meal• Biodiesel

Financial Statistics (in US$ million)

Notes:1. Including plasma2. Earnings before tax, non‐controlling interests, interest on borrowings, 

depreciation and amortisation, net gain/loss from changes in fair value of biological assets, foreign exchange gain/loss and exceptional items

FY 2018 FY 2017Revenue : 7,167 7,508EBITDA2 : 573 665Underlying Profit3  : 181 254Equity4 : 4,169 4,007

3. Net profit/loss attributable to owners of the Company, excluding net effect of net gain/loss from changes in fair value of biological assets, depreciation of bearer plants, exceptional items and other non‐operating items (foreign exchange gain/loss, and deferred tax income/expenses)

4. Attributable to owners of the Company

6

LEADING INDONESIAN PLANTATION GROUP WITH INTEGRATED OPERATIONS

Notes:1. Data as of 31 Dec 20182. Including plasma3. Including operations under JV

Collaborationwith CIRAD

Research & Development

Seedling

Dami Mas Seed Garden & SMART Biotechnology Center

Plantation & Harvesting

Planted area1,2Total 498k haNucleus 395k haPlasma 103k ha

Mature area2467k ha

FFB production210.53mn MT(FY 2018)9.61mn MT (FY 2017)

CPO Milling

No of mills46

Capacity113.27mn MT FFB p.a.

Basic Products

Production2.44mn MT(FY 2018)2.18mn MT  (FY 2017)

Production613k MT(FY 2018)545k MT (FY 2017) 

No of plants6Capacity14.98mn tpa

Capacity1,3440k tpa

CPO

Palm Kernel

Refining

Biodiesel

Kernel Crushing

Oleo‐chemicals

Processing

Branded & Unbranded Cooking OilMargarineSpecialty Fats

Biodiesel

PK OilPK Meal

Fatty AcidsFatty AlcoholGlycerineSoap Noodles

No of plants10Capacity11.76mn tpa

Capacity1600k tpa

Processed Products

7

KEY COMPETITIVE STRENGTHS

8

LEADING IN SCALE WITH VERTICALLY INTEGRATED OPERATIONS

2,436 1,900 1,967

921 824

351

2,653 758 855

2,959

0

1,000

2,000

3,000

GAR Astra Agro Wilmar Indo Agri FirstResources

Sampoerna Sime Darby IOI KLK Felda

498

285 266 338211 136

600

175 214341

0

200

400

600

GAR Astra Agro Wilmar Indo Agri(incl

Lonsum)

FirstResources

SampoernaSime Darby IOI KLK Felda

Largest plantation group in Indonesia and third largest globally in term of CPO production

Notes:1. Based on latest full fiscal year data2. Felda is the largest CPO producer with about 68% of its FFB processed sourced from plasma farmers and other parties

Largest plantation group in Indonesia and second largest globally in term of planted areaIndonesia Malaysia

Indonesia Malaysia

Note: Based on latest publicly available information (including plasma, except Wilmar and Felda)

‘000 MT

‘000 ha

9

4.9

3.6

0.7 0.8 0.5

0

1

2

3

4

5

Palm Oil(GAR)

Palm Oil(Industry)

Rape Oil Sun Oil Soy Oil

(MT/

ha)

MANAGEMENT EXPERTISE DELIVERS HIGH PRODUCTION YIELDS

22.5

18.3 18.0

21.6

15.9

14

16

18

20

22

24

GAR Astra Agro FirstResources

Wilmar Indo Agri

(MT/

ha)

Palm is the highest yielding vegetable oil

Note: Based on latest full fiscal year data

CPO yield per hectareFFB yield per hectare

Notes:•Based on latest full fiscal year data•CPO yield/ha is derived from FFB yield/ha multiply by extraction rate

Source: Oil World and Company; Data as per 2017

GAR Age Profile

Note:Data as of 31 Dec 2018, include plasma. Average age is 16 years

13%6%

6%

41%34%

GAR is one of the lowest cost producers with industry‐leading efficiencies

4.9

3.94.1

4.3

3.5

3.0

3.4

3.8

4.2

4.6

5.0

GAR Astra Agro FirstResources

Wilmar Indo Agri

(MT/

ha)

31,134

31,654

204,385

168,660

62,562

Immature (0‐3 years)

Young (4‐6 years)

Prime 1 (7‐18 years)

Prime 2 (19‐25 years)

Old (> 25 years)

10

UNRIVALLED TECHNOLOGY PLATFORM ENHANCING OPERATIONAL EFFICIENCY

0

500

1000

1500

2000

2500

3000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

CPO PK

• War Room utilises SAP, GIS and Google Earth applications

• Block‐by‐block Performance Analysis (30 ha per block) is updated daily

• Facilitates problem identification (e.g. low yielding areas), enhancing management’s ability to address issues early and prioritise improvements/changes

To monitor and manage its widely spread operations efficiently, GAR utilises a state‐of‐the‐art proprietary information technology system

Output of Palm Products(‘000 MT)

Note:2010, 2013 and 2016 output declined due to unfavourable weather conditions and biological tree stress

1,0391,201

1,3431,433

1,6661,7941,890

1,9672,073

2,3472,273

2,640

2,9112,768

2,9532,966

2,5102,724

3,049

11

UNRIVALLED TECHNOLOGY PLATFORM OPTIMISING THE PRODUCTION YIELDS AND MINIMISING COST

Superior fertiliser cost management through operational control and R&D

• GAR utilises GPS‐guided aerial manuring to cover expansive and hilly plantation area

•With this advanced aerial manuring, fertilisers are applied more effectively compared to manual application

• Fertiliser program developed with CIRAD1

• Accurate fertiliser plan to optimize benefit especially with more volatile climate conditions

• Application and dosage based on cost/benefit analysis using leaf sampling (“blood test”), analysingcondition of each plantation

Note:1 CIRAD = Centre de cooperation Internationale en Recherche Agronomique pour le Développement

(French Agricultural Research Centre for International Development) 

12

STRONG POSITION ACROSS THE DOWNSTREAM VALUE CHAIN

•Broad range of products including Food, Industrial products and Biodiesel

•Increasing sales of palm based refined products

•Golden Stena is the largest palm oil basedcharter

•Broad global coverage including Middle East and India

•Increasing presence in destination markets

•On shore refining in China and India, and ex‐tank operations in many countries

Origination of Raw Materials

Processing & Product Customisation

Logistic Excellence

Sourcing with increasing traceability:•Owned estates• Third parties

Destination Market Expertise

1313

TOWARDS RESPONSIBLE PALM OIL PRODUCTION

Progress on Traceability to the Plantation• Full TTP for 62% of the palm supply chain• 54 third‐party mills have reported full TTP with over 150 taking 

part in the TTP exercise

Supporting Smallholders • To date, GAR has helped some 1,400 independent smallholders 

in Riau and Jambi secure loans of about IDR 240 billion• Farmers can use loans to replant with higher yielding seed and 

support their livelihood while waiting for palm trees to mature

Fire Prevention• Virtually zero fires in GAR areas in 2018• Long‐term fire prevention programme extended to another 15 

villages; total 32 villages 

Partnership to Rehabilitate Orangutans • GAR renewed partnership with Orangutan Foundation 

International (OFI)• Aim to release another 60 orangutans by 2020 

14

EMPOWERING COMMUNITIES

Employment and Infrastructure• GAR provides employment for about 170,700 people in Indonesia 

• 46,300 permanent employees, 55,800 fixed‐term employees and 68,600 smallholders• We promote small and micro enterprises near our operation areas• Builds and maintains public infrastructures and facilities

• Roads, bridges, places of worship and sporting facilities

Education and Healthcare

The palm oil industry is effective in creating jobs and alleviating poverty

Note:Data as per 2017

15

GAR AWARDS & SUSTAINABILITY RATINGS

GAR received several awards in 2018 in the area of corporate, sustainability and governance• Winner: ASEAN Business Awards in the Priority 

Integration Sector ‐ Agribusiness• Winner: Singapore APEX Corporate Sustainability 

Award• Asia’s Best Supply Chain Reporting at 2017 Asia 

Sustainability Reporting Award• Runner‐up: Most Transparent Company Award in 

Agribusiness at the SIAS 19th Investors’ Choice Awards 

Being reviewed by many ratings for its sustainability performance, GAR is encouraged to make continuous improvement in this area• Debuted on FTSE4Good ASEAN 5 and Developed Indexes since mid 2018• Member of SGX Sustainability Index• Ranked 6th by NUS‐CGIO for best practices in sustainability reporting in Singapore

16

GROWTH STRATEGY

1717

STRATEGIC PRIORITIES

Build on core competitive strengths and leverage scale to maximise long‐term shareholder returns

Continued strong commitment to be leading in sustainability

To strengthen our position as the world’s leading palm oil plantation company

Accelerate presence and optimise margins in every sector of the value chain

Be the best, fully‐

integrated, global 

agribusiness and 

consumer product 

company –the Partner of Choice

Leading global merchandiser for Indonesia palm oil products while 

focusing on higher margin customers

Deliver value added services and solutions to 

customers

Cost Efficiency –mechanisation and automation

Yield Improvement –research and development

Operational Excellence –best‐in‐class plantation 

management

World class producer of 

diversified value added, quality and sustainable 

products

Breakthrough competitive edge with cutting edge technology

1818

GROWTH STRATEGY AND OUTLOOK

• Focus on replanting with higher‐yielding seeds to sustain production growth• Continued efforts in yield improvement, cost efficiency and sustainability initiatives• Projected 2019 capex US$150 million

• Extending product portfolio, global market reach and logistic facilities to enhance our integrated operations

• Evaluating strategic options and business model restructuring• Projected 2019 capex US$100 million

• GAR remains confident in the robust demand growth for palm oil in the long term • We expect CPO price to remain supported by global demand growth including from biodiesel

Capitalising on the robust fundamentals of the industry, GAR continues to enhance its integrated operation capabilities to optimise profit opportunities across the value chain

Upstream

Outlook

Downstream

1919

INDONESIA BIODIESEL

Indonesia growing biodiesel mixture mandate is a major catalyst to the industry

• Global feedstock for biodiesel is estimated to have grown by 10% to approx. 40 million MT in 2018, accounting for 21% of vegetable oil consumption

• Palm oil is the largest feedstock use for biodiesel with 35% contribution• Indonesia implemented a subsidised B20 programme in 2016 with full implementation since 

Sep 2018. B30 programme is expected to be implemented in 2020.• In 2018 Indonesia domestic biodiesel consumption totaled 3.8 million kltr while 2019 volume 

is budgeted at 6.2 million kltr (63% increase)

Indonesia Biodiesel Productionin million kltr

3,4

6,2

8,5

2017A 2018A 2019F

• Indonesian biodiesel production outperformed at 6.2 million kltr in 2018 versus 3.4 million kltr a year earlier

• Indonesia biodiesel export reached 1.8 million kltrin 2018 driven by large exports to China and the EU with price competitiveness of CPO for energy

Source: Ministry of Energy and Mineral Resources of the Republic of Indonesia; 

Oil World

20

FINANCIAL PERFORMANCE

2121

FINANCIAL PERFORMANCE

Notes:1. Net profit or loss attributable to owners of the Company, excluding net effect of net gain or loss from changes in fair value of biological assets, 

depreciation of bearer plants, exceptional items and other non‐operating items (foreign exchange gain or loss and deferred tax income or expense)2. Earnings before tax, non‐controlling interests, interest on borrowings, depreciation and amortisation, net gain or loss from changes in fair value of 

biological assets, foreign exchange gain or loss and exceptional items

FY 2018 results weighed down by weaker CPO prices throughout the year offset by the fair value gain on financial assets following the adoption of IFRS 9

(in US$ million) 2018 2017 2016

Revenue 7,167     7,508  7,209 

Gross Profit 1,007     1,097  1,014 

Gross Profit Margin  14% 15% 14%

Operating Profit 148        241     176    

Tax (84)         (35)      263    

Underlying Profit1 181        254     186    

Net (Loss)/Profit attributable to owners of the Company           (2) 74       400    

EBITDA2 573        665     572    

EBITDA margin  8% 9% 8%

2222

SEGMENTAL RESULTS

Note:1.This segment refers to processing and merchandising of palm and oilseed based products i.e. bulk, branded, oleo‐chemicals and other vegetable oils, as well as production and distribution of other consumer products in China and Indonesia mainly food and beverages

US$ million 2018 2017 2016

RevenuePlantations and palm oil mills 1,451       1,673       1,557Palm, laurics and others1 7,102       7,433       7,139Inter‐segment eliminations (1,385)     (1,598)     (1,487) Consolidated Revenue 7,167      7,508      7,209 

EBITDAPlantations and palm oil mills 391          499          379

27% 30% 24%Palm, laurics and others1 184          166          192

2.6% 2.2% 2.7%Inter‐segment eliminations (1.8)          (0.2)          0.8      Consolidated EBITDA 573 665 572

• Plantations and palm oil mills: FY 2018 results impacted by weaker prices partly offset by the production growth

• Palm, laurics and others: Despite declining CPO prices, EBITDA margin increased to 2.6% through additional contribution from biodiesel and destination sales, the removal of export levy in Indonesia and fair value gain on financial assets following adoption of IFRS 9

2323

FINANCIAL POSITION

Robust balance sheet amidst challenging environment

US$ million 31‐Dec‐18 31‐Dec‐17 Change

Total Assets 8,546 8,138 5%Cash and short‐term investments 545 394 38%Fixed assets1 3,716 3,692 1%

Total Liabilities 4,236 4,029 5%

Net Debt2 1,734 1,684 3%Total debt3 3,010 2,992 1%Cash, short‐term investments and liquid working capital4 1,276 1,308 ‐2%

Total Equity Attributable to Owners of the Company 4,169 4,007 4%

Net Debt2/Equity5 0.42x 0.42xNet Debt2/Total Assets 0.20x 0.21xNet Debt2/EBITDA 3.03x 2.53xEBITDA/Interest 3.55x 4.84x

Notes:1. Includes Bearer Plants, Property, Plant and Equipment, and Investment Properties2. Interest bearing debt less cash, short‐term investments and liquid working capital3. Interest bearing debt

4. Liquid working capital is trade receivables, inventories (excluding consumables), deposits and advances to suppliers less trade payables and advances from customers

5. Equity attributable to owners of the Company

2424

CONTACT US

Golden Agri‐Resources Ltdc/o 108 Pasir Panjang Road#06‐00 Golden Agri PlazaSingapore 118535

Telephone : +65 65900800Facsimile : +65 65900887

www.goldenagri.com.sg

Contact Person : Richard Fung richard@goldenagri.com.sg

If you need further information, please contact: