11

Company PresentationGolden Agri-Resources LtdSeptember 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 153

Financial Performance 194

4

CORPORATE OVERVIEW

55

OVERVIEW OF GAR

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

• Broad presence in destination markets with on shore refining in China and India, sales representative offices and ex‐tank operations in many large consuming countries

Planted Area (as of 30 Jun 2019)1 : 499,235 haOutput of Palm Products (CPO and PK)

1H 2019 : 1,293,000 MTFY 2018 : 3,049,000 MT

Plantation ProfileFinancial 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

1H 2019 FY 2018Revenue : 3,167 7,167EBITDA2 : 198 573Underlying Profit/(Loss)3 : (15) 181Equity4 : 4,103 4,169

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

4. Attributable to owners of the Company

6

LEADING INDONESIAN PLANTATION GROUP WITH INTEGRATED OPERATIONS

Notes:1. Data as of 30 Jun 20192. Including plasma3. Including operations under JV

Collaborationwith CIRAD

Research & Development

Seedling

Dami Mas Seed Garden & SMART Biotechnology Center

Plantation & Harvesting

Planted area1,2Total 499k haNucleus 395k haPlasma 104k ha

Mature area2474k ha

FFB production24.46mn MT(1H 2019)10.53mn MT (FY 2018)

CPO Milling

No of mills46

Capacity113.27mn MT FFB p.a.

Basic Products

Production1.03 MT(1H 2019)2.44mn MT  (FY 2018)

Production267k MT(1H 2019)613k MT (FY 2018) 

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

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

Notes: 1. Based on latest full fiscal year data2. Felda is the largest CPO producer with about 70% of its FFB processed sourced from plasma farmers and other parties

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

Indonesia Malaysia

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

‘000 MT

‘000 ha

499

285 267337

212 185

603

174 214339

0

200

400

600

GAR Astra Agro Wilmar IndofoodAgri

FirstResources

Bumitama Sime Darby IOI KLK Felda

2,4361,937 1,967

921 824 1,043

2,653

758 1,000

2,820

0

1000

2000

3000

GAR Astra Agro Wilmar IndofoodAgri

FirstResources

Bumitama Sime Darby IOI KLK Felda

9

22.5 21.4 21.6 15.9 18.0 20.4 20.5 23.6 21.6 16.9

4.9

4.3 4.3

3.5

4.1

4.54.3

4.94.7

3.5

3.0

3.5

4.0

4.5

5.0

15.0

18.0

21.0

24.0

GAR Astra Agro Wilmar IndofoodAgri

FirstResources

Bumitama Sime Darby IOI KLK FeldaFFB CPO

4.9

3.5

0.8 0.8 0.5

0.0

1.0

2.0

3.0

4.0

5.0

Palm OilGAR

Palm OilIndustry

RapeseedOil

SunflowerOil

SoybeanOil

25,560

30,808

206,447163,037

73,383 Immature (0‐3 years)

Young (4‐6 years)

Prime 1 (7‐18 years)

Prime 2 (19‐25 years)

Old (>25 years)

MANAGEMENT EXPERTISE DELIVERS HIGH PRODUCTION YIELDS

Palm is the highest yielding vegetable oil

GAR’s plantation yield is amongst the highest

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

Source: Oil World and Company. Data as per 2018

GAR Age Profile

Note:Data as of 30 Jun 2019, include plasma. Average age is 17 years

15%5%

6%

41%33%

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

FFB yield ‐M

T/ha

MT/ha

Indonesia Malaysia

CPO yield ‐MT/ha

10

UNRIVALLED TECHNOLOGY PLATFORM ENHANCING COMPETITIVENESS

• Monitor and manage widely spread operations efficiently through War Room, a state‐of‐the‐art proprietary information technology system that utilises SAP, GIS and Google Earth applications

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

• Accurate fertiliser programme with dosage based on cost/benefit analysis using leaf sampling, analysingcondition of each plantation

• Undertaking research in plant breeding and biotechnology, resulting in tissue culture planting materials – Eka 1 and Eka 2 – that can double our long‐term yield

• Transformation projects, promoting mechanisation and automation in the plantation operations, such as harvesting, fertiliser application, estate maintenance, and transportation

Efficiency and productivity through precision agriculture

Adopting latest technological innovation for competitive edge 

11

STRONG POSITION ACROSS THE DOWNSTREAM VALUE CHAIN

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

•Focusing on sales of higher value palm based derivative products

•Operating the largestpalm oil basedcharter through partnership

•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

1212

TOWARDS RESPONSIBLE PALM OIL PRODUCTION

Progress on Traceability to the Plantation• Full TTP for over 60% of the palm supply chain• 58 third‐party mills have reported full TTP with over 180 taking part in the TTP exercise

GAR in the FTSE4Good index for the 2nd year• Following the latest annual assessment, GAR remains a constituent of the FTSE4Good index

• The index is designed to measure the performance of companies demonstrating strong ESG practices

Safe Water Garden Project• System to treat/manage household wastewater in local communities

• Processed wastewater used as fertiliser in gardens• Benefits include: 

• Improved sanitation, health & quality of life• Savings: reduced medical bills• Income generation for local communities from cash crops in 

garden• Installed in 10 communities with another 10 planned in Sumatra

13

EMPOWERING COMMUNITIES

Employment and Infrastructure• GAR provides employment for about 171,700 people in Indonesia 

• 62,100 permanent employees, 40,200 fixed‐term employees and 69,400 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 2018

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

1616

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

1717

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

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

• Evaluating strategic options and business model restructuring

• 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

GAR continues to enhance its integrated operation capabilities to optimise profit opportunities and cash flow generation across the value chain

Upstream

Outlook

Downstream

1818

INDONESIA BIODIESEL

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

• Global feedstock for biodiesel grew by 14% to 41 million MT in 2018 and expected to further expand by 9% in 2019

• Indonesia implemented a subsidised B20 programme in 2016 with full implementation since Sep 2018. B30 programme is expected to be implemented in fourth quarter 2019.

• Indonesian biodiesel production outperformed at six million kltr in 2018 versus 3.4 million kltra year earlier, and estimated at approx. eight million kltr for 2019* 

Indonesia Biodiesel Consumptionin million kltr

43.3

7

2018A 1H 2019A 2019F*

• In 2018 Indonesia domestic biodiesel totaled       four million kltr while 2019 volume is expected at seven million kltr

• Domestic biodiesel realisation in 2019 is on track• Indonesia biodiesel export reached 530k MT in 

YTD May 2019

Notes:* Assuming B30 programme implementation in fourth quarter 2019Source: Data processed from the Company’s estimates, Oil World, Ministry of Energy and Mineral Resources, and GAPKI

19

FINANCIAL PERFORMANCE

2020

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

• Weaker performance mainly attributable to low CPO prices• Stronger contribution from downstream business partly compensating weaker upstream

performance

(in US$ million) 1H 2019 1H 2018 2018 2017

Revenue 3,167     3,676     7,167  7,508 

Gross Profit 345        468        1,007  1,097 

Gross Profit Margin  11% 13% 14% 15%

Operating Profit 21          60          148      241     

Tax (11)         (11)         (84)       (35)      

Underlying Profit or Loss1 (15)         41          181      254     

Net Profit or Loss attributable to owners of the Company         (46)         (27)         (2) 74       

EBITDA2 198        238        573      665     

EBITDA margin  6% 6% 8% 9%

2121

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

• Plantations and palm oil mills: 1H 2019 EBITDA lower margin was impacted by weaker CPO prices• Palm, laurics and others: Despite continued CPO price volatility, 1H 2019 EBITDA margin expanded by 2.1% on increasing benefits from integrated business model

US$ million 1H 2019 1H 2018 2018 2017

RevenuePlantations and palm oil mills 574          684          1,451        1,673      Palm, laurics and others1 3,151       3,649       7,102        7,433      Inter‐segment eliminations (559)         (657)         (1,385)      (1,598)    Consolidated Revenue 3,167      3,676      7,167       7,508     

EBITDAPlantations and palm oil mills 97            197          391           499         

17% 29% 27% 30%Palm, laurics and others1 100          40            184           166         

3.2% 1.1% 2.6% 2.2%Inter‐segment eliminations 0.8           0.3           (1.8)           (0.2)         Consolidated EBITDA 198 238 573 665

2222

FINANCIAL POSITION

US$ million 30‐Jun‐19 31‐Dec‐18 Change

Total Assets 8,543 8,546 ‐0.03%Cash and short‐term investments 472 545 ‐13%Fixed assets1 3,723 3,716 0.2%

Total Liabilities 4,298 4,236 1%

Net Debt2 2,001 1,734 15%Total debt3 3,060 3,010 2%Cash, short‐term investments and liquid working capital4 1,059 1,276 ‐17%

Total Equity Attributable to Owners of the Company 4,103 4,169 ‐2%

Net Debt2/Equity5 0.49x 0.42xNet Debt2/Total Assets 0.23x 0.20xNet Debt2/EBITDA6 3.75x 3.03xEBITDA/Interest6 3.20x 3.55x

Notes:1. Includes Property, Plant and Equipment, Bearer Plants, Right‐of‐use Assets 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 Company6. Based on the last four quarter performance

2323

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: