11

Company PresentationGolden Agri-Resources LtdNovember 2018

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 30 Sep 2018)1 : 499,047 haOutput of Palm Products (CPO and PK)

YTD Sep 2018 : 2,235,000 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 palm oil‐based edible oil and fat products

• It also has operations in China and India including a deep sea port, soybean crushing plant, and production of refined edible oil products as well as other food products such as noodles

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

YTD Sep 2018 FY 2017Revenue : 5,515 7,508EBITDA2 : 370 665Underlying Profit3  : 79 254Equity4 : 3,851 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 and other non‐operating items (foreign exchange loss, net tax impact from tax‐based asset revaluations, and other deferred tax income/expenses)

4. Attributable to owners of the Company

6

LEADING INDONESIAN PLANTATION GROUP WITH INTEGRATED OPERATIONS

Notes:1. Data as of 30 Sep 20182. Including plasma3. Including operations under JV

Collaboratewith CIRAD

Research & Development

Seedling

Dami Mas Seed Garden & SMART Biotechnology Center

Plantation & Harvesting

Planted area1,2Total 499k ha• Nucleus 396k ha• Plasma 103k ha

Mature area2474k ha

FFB production27.73mn MT(YTD Sep 2018)9.61mn MT (FY 2017)

CPO Milling

No of mills46

Capacity113.27mn MT FFB p.a.

Basic Products

Production1.79mn MT(YTD Sep 2018)2.18mn MT  (FY 2017)

Production450k MT(YTD Sep 2018)545k MT (FY 2017) 

No of plants6Capacity14.68mn tpa

Capacity1600k tpa

No of plants10Capacity11.76mn tpa

Capacity1,3440k tpa

CPO

Palm Kernel (PK)

Refining

Biodiesel

Kernel Crushing

Oleochemical

Processing Processed Products

Branded & Unbranded Cooking OilMargarineSpecialty Fats

Biodiesel

PK OilPK Meal

Fatty AcidsFatty AlcoholGlycerineSoap Noodles

7

KEY COMPETITIVE STRENGTHS

8

LEADING IN SCALE WITH VERTICALLY INTEGRATED OPERATONS

2,179 1,737 1,743

842

702

351

2,535

697 788

2,959

0

1,000

2,000

3,000

GAR Astra Agro Wilmar Indo Agri FirstResources

Sampoerna Sime Darby IOI KLK FeldaCPO

499

291 264334

210136

603

175 211341

0

200

400

600

GAR Astra Agro Wilmar Indo Agri(incl

Lonsum)

FirstResources

SampoernaSime Darby IOI KLK Felda

Planted

Largest plantation group in Indonesia and third largest globally in terms of CPO production 1,2

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 terms of planted area

Indonesia Malaysia

Indonesia Malaysia

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

‘000 MT

‘000 ha

9

4.6

3.6

0.8 0.8 0.5

0

1

2

3

4

5

Palm Oil(GAR)

Palm Oil(Industry)

Rape Oil Sun Oil Soy Oil

(MT/

ha)

4.6

3.9 3.9 3.9

3.2

3.03.23.43.63.84.04.24.44.6

GAR Astra Agro FirstResources

Wilmar Indo Agri

(MT/

ha)

25,097

30,851

204,279171,052

67,768

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

20.5

18.317.5

19.7

14.8

14

16

18

20

22

GAR Astra Agro FirstResources

Wilmar Indo Agri

(MT/

ha)

Palm is the highest yielding vegetable oil

Note:1. Based on latest full fiscal year data

CPO yield per hectare 1,2FFB yield per hectare 1

Notes:1. Based on latest full fiscal year data2. 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 1

Note:1. Data as of 30 Sep 2018, include plasma. Average age is 16 years

14%5%

6%

41%34%

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

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

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 1,967

2,073

2,3472,273

2,640

2,9112,768

2,9532,966

2,510

2,724

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 plantation hectarage

•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

13

STRONG COMMITMENT TO THE ENVIRONMENT AND COMMUNITY FOR SUSTAINABLE PALM OIL

Sustainable Practices for Existing PlantationsZero waste policy by recycling of mill wastes (Empty Fruit Bunch and Palm Oil Mill Effluent)Precise dosage in fertiliser application plan to minimiserisk of pollutionIntegrated pest management by deploying biological controls to minimise and mitigate the impact of chemical pesticides

No deforestation footprint in our palm oil operations by not developing on:High carbon stock (HCS) forestsHigh conservation value (HCV) forest areasPeat lands of any depth

Enhanced Planting Procedures

Continuous yield improvement in nucleus and plasma plantations managed by the CompanyZero burning policy in land clearingEnsure free, prior and informed consent for indigenous and local communitiesComply with all relevant laws and National Interpretation of RSPO Principles and Criteria

1414

TOWARDS RESPONSIBLE PALM OIL PRODUCTION

Progress on Traceability to the Plantation for third‐party suppliers • Full TTP for 49% of the palm supply chain (GAR‐owned mills and third‐

party suppliers) • 52 third‐party mills have been engaged by GAR on TTP with 17 reporting 

100% TTP as of Q3 2018• This helps us share responsible practices and build a more resilient supply 

chain

GAR continues partnership to rehabilitate orangutans • GAR has renewed partnership with Orangutan Foundation International 

(OFI)• Plan to release 60 orangutans back into the wild over the next 3 years • Since 2011, OFI with support from GAR has released 100 orangutans in 

Central Kalimantan• Updated programme will include community education on maintaining 

biodiversity

15

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

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 2018 capex US$110 million

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

• Evaluating strategic options and business model restructuring• Projected 2018 capex US$110 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

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, net tax impact from tax‐based asset revaluations, 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

(in US$ million) Ytd Sep 2018

Ytd Sep 2017 2017 2016

Revenue 5,515 5,584 7,508 7,209

Gross Profit 745 836 1,097 1,014

Gross Profit Margin 14% 15% 15% 14%

Operating Profit 111 194 241 176

Tax (53) (41) (35) 263

Underlying Profit1 79 217 254 186

Net (Loss)/Profit attributable to owners of the Company (81) 103 74 400

EBITDA2 370 508 665 572

EBITDA margin 7% 9% 9% 8%

9M 2018 results continued to be impacted by weaker CPO prices

2121

SEGMENTAL RESULTS

Note:1. Include other consumer products in China and Indonesia mainly in food and beverages

US$ million YTD Sep 2018

YTD Sep 2017 2017 2016

RevenuePlantations and palm oil mills 1,100 1,252 1,673 1,557Palm and laurics 4,960 4,913 6,579 6,262Oilseeds 362 471 661 753Others1 147 147 193 187Inter-segment eliminations (1,054) (1,199) (1,598) (1,549) Consolidated Revenue 5,515 5,584 7,508 7,209

EBITDAPlantations and palm oil mills 305 378 499 379

28% 30% 30% 24%

Palm and laurics 65 122 158 1811.3% 2.5% 2.4% 2.9%

Oilseeds 0.4 8 8 100.1% 1.6% 1.2% 1.3%

Others1 (0.6) 2.0 2.2 1.8 -0.4% 1.3% 1.1% 1.0%

Eliminations 0.3 (1.1) (2.5) (0.4) Consolidated EBITDA 370 508 665 572

2222

FINANCIAL POSITION

Strong balance sheet amidst challenging environment

US$ million 30‐Sep‐18 31‐Dec‐17 Change

Total Assets 8,110 8,138 ‐0.3%

Cash and short‐term investments 373 394 ‐5%Fixed Assets1 3,693 3,692 0.04%

Total Liabilities 4,157 4,029 3%

Adjusted Net Debt2 1,888 1,684 12%

Net Debt3 2,744 2,598 6%Liquid Working Capital4 856 914 ‐6%

Total Equity Attributable to Owners of the Company 3,851 4,007 ‐4%

Adjusted Net Debt2/Equity5 Ratio 0.49x 0.42xAdjusted Net Debt2/Total Assets 0.23x 0.21xAdjusted Net Debt2/EBITDA6 3.83x 2.53xEBITDA/Interest 3.12x 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 less cash and short‐term investments

4. 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. 30 September 2018 figure is based on annualised EBITDA

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: