11

Company PresentationGolden Agri-Resources LtdDecember 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 Sep 2019)1 : 495,247 haOutput of Palm Products (CPO and PK)

YTD Sep 2019 : 2,125,000 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

YTD Sep 2019 FY 2018Revenue : 4,730 7,167EBITDA2 : 305 573Underlying (Loss)/Profit3 : (12) 181Equity4 : 4,106 4,169

3. Net profit/loss attributable to owners of the Company, excluding 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/expense) 

4. Attributable to owners of the Company

6

LEADING INDONESIAN PLANTATION GROUP WITH INTEGRATED OPERATIONS

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

Collaborationwith CIRAD

Research & Development

Seedling

Dami Mas Seed Garden & SMART Biotechnology Center

Plantation & Harvesting

Planted area1,2Total 495k haNucleus 391k haPlasma 104k ha

Mature area2468k ha

FFB production27.23mn MT(YTD Sep 2019)10.53mn MT (FY 2018)

CPO Milling

No of mills46

Capacity113.27mn MT FFB p.a.

Basic Products

Production1.68 MT(YTD Sep 2019)2.44mn MT  (FY 2018)

Production443k MT(YTD Sep 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 plants9Capacity11.76mn 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

495

285 267335

212 186

600

176 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

27,626

31,198

205,871162,727

67,825 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 Sep 2019, include plasma. Average age is 17 years

14%6%

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 nearly 70% of the palm supply chain• 69 third‐party mills have reported full TTP with around 190 taking part in the exercise

• On track to achieve 100% TTP for palm supply chain at end 2020

Managing Fire and Haze• In 3Q 2019, over 1,700 ha were affected by fire – 0.3% of GAR’s total area• Mainly caused by external parties clearing land with fire • Global Forest Watch reported that 85% of fire alerts were outside palm oil concessions 

• GAR remains vigilant and adheres strictly to the Zero Burning Policy• GAR also continues to work with villages under the Desa Makmur PeduliApi (DMPA) on long‐term fire prevention 

• We encourage the collaboration with the government on DMPA as part of Private Public Partnership (Gotong Royong)

Radar Monitoring of Deforestation • GAR taking part in industry initiative to support and fund development of new, publicly available radar‐based forest monitoring system 

• The Radar Alerts for Detecting Deforestation or (RADD) will make it easier and more transparent to see deforestation in near‐real‐time 

• Developed by Wageningen University and Satelligence, and facilitated by World Resources Institute

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• Accelerated efforts in yield improvement, cost efficiency and sustainability initiatives

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

• Evaluating strategic options and business model restructuring

• GAR remains confident in the robust supply and demand fundamentals 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 10% in 2019

• Indonesia implemented a subsidised B20 programme in 2016 with full implementation since Sep 2018. B30 programme will be implemented in early 2020

Indonesia Biodiesel Consumptionin million kltr

Notes:* Based on Indonesian government allocationSource: Oil World, Ministry of Energy and Mineral Resources, and Aprobi

2.64.0

5.06.6

9.6

2017A 2018A 8M19A 2019* 2020*

• Since 2017, Indonesian biodiesel production has boosted from 3.4 million kltr in 2017 to estimated almost 11 million kltr in 2020

• Domestic biodiesel realisation in 2019 is on track• Indonesia biodiesel export reached 1.1 million 

kltr in YTD Aug 2019

19

FINANCIAL PERFORMANCE

2020

FINANCIAL PERFORMANCE

Notes:1. Net profit or loss attributable to owners of the Company, excluding 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

• Continued low CPO prices impacting 2019 performance• Stronger contribution from downstream business partly compensating weaker upstream

performance

(in US$ million) YTD Sep 2019

YTD Sep 2018

2018 2017

Revenue 4,730     5,515     7,167  7,508 

Gross Profit 532        745        1,007  1,097 

Gross Profit Margin  11% 14% 14% 15%

Operating Profit 34          111        148      241     

Tax (18)         (53)         (84)       (35)      

Underlying Profit or Loss1 (12)         79          181      254     

Net Profit or Loss attributable to owners of the Company         (46)         (81)         (2) 74       

EBITDA2 305        370        573      665     

EBITDA margin  6% 7% 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: YTD Sep 2019 EBITDA margin was lower as impacted by weaker CPO prices and output

• Palm, laurics and others: Despite continued CPO price volatility, YTD Sep 2019 EBITDA margin expanded by 1.7% with increasing benefits from integrated business model

US$ million YTD Sep 2019

YTD Sep 2019

2018 2017

RevenuePlantations and palm oil mills 930          1,100       1,451        1,673      Palm, laurics and others1 4,698       5,469       7,102        7,433      Inter‐segment eliminations (898)         (1,054)     (1,385)      (1,598)    Consolidated Revenue 4,730      5,515      7,167       7,508     

EBITDAPlantations and palm oil mills 167          305          391           499         

18% 28% 27% 30%Palm, laurics and others1 138          64            184           166         

2.9% 1.2% 2.6% 2.2%Inter‐segment eliminations (0.4)          1.0           (1.8)           (0.2)         Consolidated EBITDA 305 370 573 665

2222

FINANCIAL POSITION

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

Total Assets 8,497 8,546 ‐0.6%Cash and short‐term investments 513 545 ‐6%Fixed assets1 3,720 3,716 0.1%

Total Liabilities 4,246 4,236 0.2%

Net Debt2 2,019 1,734 16%Total debt3 3,129 3,010 4%Cash, short‐term investments and liquid working capital4 1,109 1,276 ‐13%

Total Equity Attributable to Owners of the Company 4,106 4,169 ‐2%

Net Debt2/Equity5 0.49x 0.42xNet Debt2/Total Assets 0.24x 0.20xNet Debt2/EBITDA6 3.98x 3.03xEBITDA/Interest6 3.07x 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: