Company Presentation

Golden Agri-Resources Ltd

March 2019

11
 DISCLAIMER

This presentation has been prepared by Golden Agri‐Resources Ltd. (“GAR” or “Company”) for informational
purposes, and may contain projections and forward looking statements that reflect the Company’s current
views with respect to future events and financial performance. These views are based on current assumptions
which are subject to various risks and which may change over time. No assurance can be given that future
events will occur, that projections will be achieved, or that the Company’s assumptions are correct. Actual
results may differ materially from those projected. A prospective investor must make its own independent
decision regarding investment in securities.
Opinions expressed herein reflect the judgement of the Company as of the date of this presentation and may
be subject to change without notice if the Company becomes aware of any information, whether specific to
the 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 implication
that the information contained therein is correct as of any time subsequent to the date thereof or that there
has been no change in the financial condition or affairs of GAR since such date. This presentation may be
updated from time to time and there is no undertaking by GAR to post any such amendments or supplements
on this presentation.
The Company will not be responsible for any consequences resulting from the use of this presentation as well
as the reliance upon any opinion or statement contained herein or for any omission.

© Golden Agri‐Resources Ltd. All rights reserved.

22
CONTENTS

1 Corporate Overview 4

2 Key Competitive Strengths 7

3 Growth Strategy 16

4 Financial Performance 19

33
CORPORATE OVERVIEW

4
 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 Financial Statistics (in US$ million)

Planted Area (as of 31 Dec 2018)1 : 498,395 ha FY 2018 FY 2017
Output of Palm Products (CPO and PK) Revenue : 7,167 7,508
FY 2018 : 3,049,000 MT EBITDA2 : 573 665
FY 2017 : 2,724,000 MT Underlying Profit3 : 181 254
Key Products Equity4 : 4,169 4,007
Notes:
• Crude palm oil (CPO) • Cooking oil 1. Including plasma
2. Earnings before tax, non‐controlling interests, interest on borrowings,
• Palm kernel (PK) • Margarine depreciation and amortisation, net gain/loss from changes in fair value of
• Palm kernel oil (PKO) • Shortening biological assets, foreign exchange gain/loss and exceptional items
3. Net profit/loss attributable to owners of the Company, excluding net effect of net
• Palm kernel meal • Specialty fats gain/loss from changes in fair value of biological assets, depreciation of bearer
plants, exceptional items and other non‐operating items (foreign exchange
• Soybean oil and meal • Stearin gain/loss, and deferred tax income/expenses)
• Biodiesel • Oleo‐chemicals 4. Attributable to owners of the Company 55
LEADING INDONESIAN PLANTATION GROUP
WITH INTEGRATED OPERATIONS

Research & Plantation & CPO Milling Basic Processing Processed

Development Harvesting Products Products

Collaboration Planted area1,2 No of mills CPO Refining Branded &

with CIRAD Total 498k ha 46
Nucleus 395k ha Production No of plants Unbranded
Seedling Plasma 103k ha Capacity1 2.44mn MT 6 Cooking Oil
13.27mn MT (FY 2018) Capacity1 Margarine
Mature area2 FFB p.a. 2.18mn MT 4.98mn tpa Specialty Fats
467k ha (FY 2017)
FFB production2 Biodiesel
Palm Kernel Capacity1 Biodiesel
10.53mn MT
(FY 2018) 600k tpa
Dami Mas Production
9.61mn MT 613k MT Kernel Crushing
Seed Garden &
(FY 2017) (FY 2018) No of plants PK Oil
SMART
Biotechnology 545k MT 10 PK Meal
Center (FY 2017) Capacity1
1.76mn tpa
Fatty Acids
Notes: Oleo‐chemicals Fatty Alcohol
1. Data as of 31 Dec 2018 Capacity1,3 Glycerine
2. Including plasma 440k tpa
3. Including operations under JV Soap Noodles 6
KEY COMPETITIVE STRENGTHS

7
LEADING IN SCALE WITH VERTICALLY
INTEGRATED OPERATONS

Largest plantation group in Indonesia and second largest globally in term of planted area
‘000 ha Indonesia Malaysia
600

400
600
498
200
285 338 341
266 211 214
136 175
0
GAR Astra Agro Wilmar Indo Agri First Sampoerna Sime Darby IOI KLK Felda
(incl Resources
Lonsum)
Note: Based on latest publicly available information (including plasma, except Wilmar and Felda)

Largest plantation group in Indonesia and third largest globally in term of CPO production
‘000 MT Indonesia Malaysia

3,000

2,000 2,959
2,653
1,000 2,436
1,900 1,967 758 855
824
921 351
0
GAR Astra Agro Wilmar Indo Agri First Sampoerna Sime Darby IOI KLK Felda
Resources
Notes:
1. Based on latest full fiscal year data
2. Felda is the largest CPO producer with about 68% of its FFB processed sourced from plasma farmers and other parties
8
 MANAGEMENT EXPERTISE DELIVERS HIGH
PRODUCTION YIELDS

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

FFB yield per hectare CPO yield per hectare
24 4.9
5.0
22.5
22 21.6 4.6

(MT/ha)
(MT/ha)

4.3
20 4.2 4.1
18.3 18.0 3.9
18 3.8
3.5
15.9
16 3.4

14 3.0
GAR Astra Agro First Wilmar Indo Agri GAR Astra Agro First Wilmar Indo Agri
Resources Notes: Resources
Note: • Based on latest full fiscal year data
Based on latest full fiscal year data • CPO yield/ha is derived from FFB yield/ha multiply by extraction rate

GAR Age Profile Palm is the highest yielding vegetable oil

6%
13% 4.9
6% 5
31,134
62,562
31,654 4 3.6
Immature (0‐3 years) 3
(MT/ha)

168,660 Young (4‐6 years)

2
Prime 1 (7‐18 years)
1 0.7 0.8 0.5
204,385
Prime 2 (19‐25 years)
34% 0
Old (> 25 years)
41% Palm Oil Palm Oil Rape Oil Sun Oil Soy Oil
(GAR) (Industry)
Note:
Data as of 31 Dec 2018, include plasma. Average age is 16 years Source: Oil World and Company; Data as per 2017 9
 UNRIVALLED TECHNOLOGY PLATFORM ENHANCING
OPERATIONAL EFFICIENCY

To monitor and manage its widely spread operations efficiently, GAR utilises a state‐
of‐the‐art proprietary information technology system
• 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
Output of Palm Products
(‘000 MT) 3,049
2,911 2,9532,966
3000
2,768 2,724
2,640
2,510
2500 2,347
2,273
2,073
1,967
2000 1,794
1,890
1,666
1,433
1500 1,343
1,201
1,039
1000

500

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
CPO PK
Note:
2010, 2013 and 2016 output declined due to unfavourable weather
conditions and biological tree stress

10
 UNRIVALLED TECHNOLOGY PLATFORM OPTIMISING
THE PRODUCTION YIELDS AND MINIMISING COST

Superior fertiliser cost management through operational control and R&D

• 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”), analysing
condition of each plantation

• 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

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

(French Agricultural Research Centre for International Development)

11
 STRONG POSITION ACROSS THE DOWNSTREAM
VALUE CHAIN

Origination of Processing & Logistic Excellence Destination Market

Raw Materials Product Customisation Expertise

Sourcing with •Broad range of products •Golden Stena is the •Increasing presence in
increasing traceability: including Food, largest palm oil based destination markets
• Owned estates Industrial products and charter •On shore refining in
• Third parties Biodiesel •Broad global coverage China and India, and
•Increasing sales of palm including Middle East ex‐tank operations in
based refined products and India many countries

12
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
13
13
EMPOWERING COMMUNITIES

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

Note:
Data as per 2017 14
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

15
GROWTH STRATEGY

16
 STRATEGIC PRIORITIES

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

shareholder returns
Breakthrough competitive edge with cutting edge technology

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

company
Be the best,
Operational
Yield fully‐
Excellence – Cost Efficiency –
Improvement –
best‐in‐class
research and
mechanisation integrated,
plantation and automation global
development
management
agribusiness
and
Accelerate presence and optimise margins in every sector of the value consumer
chain product
Leading global World class company –
merchandiser for producer of Deliver value the Partner
Indonesia palm oil diversified value added services
products while
of Choice
added, quality and solutions to
focusing on higher and sustainable customers
margin customers
products

Continued strong commitment to be leading in sustainability

17
17
 GROWTH STRATEGY AND OUTLOOK

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
• 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

Downstream
• 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

Outlook
• 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
18
18
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 Production • Indonesian biodiesel production outperformed at

8,5
in million kltr 6.2 million kltr in 2018 versus 3.4 million kltr a year
6,2 earlier
3,4 • Indonesia biodiesel export reached 1.8 million kltr
in 2018 driven by large exports to China and the
EU with price competitiveness of CPO for energy

2017A 2018A 2019F Source: Ministry of Energy and Mineral Resources of the Republic of Indonesia;
Oil World 19
19
FINANCIAL PERFORMANCE

20
FINANCIAL PERFORMANCE

(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%

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
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 21
21
 SEGMENTAL RESULTS

US$ million 2018 2017 2016

Revenue
Plantations and palm oil mills 1,451 1,673 1,557
Palm, laurics and others1 7,102 7,433 7,139
Inter‐segment eliminations (1,385) (1,598) (1,487)
Consolidated Revenue 7,167 7,508 7,209
EBITDA
Plantations 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
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 22
22
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 0.42x
Net Debt2/Total Assets 0.20x 0.21x
Net Debt2/EBITDA 3.03x 2.53x
EBITDA/Interest 3.55x 4.84x
Notes:
1. Includes Bearer Plants, Property, Plant and Equipment, and Investment Properties 4. Liquid working capital is trade receivables, inventories (excluding consumables), deposits
2. Interest bearing debt less cash, short‐term investments and liquid working capital and advances to suppliers less trade payables and advances from customers
3. Interest bearing debt 5. Equity attributable to owners of the Company 23
23
CONTACT US

If you need further information, please contact:

Golden Agri‐Resources Ltd
c/o 108 Pasir Panjang Road
#06‐00 Golden Agri Plaza
Singapore 118535

Telephone : +65 65900800

Facsimile : +65 65900887

www.goldenagri.com.sg

Contact Person : Richard Fung

richard@goldenagri.com.sg

24
24