Golden Agri-Resources Ltd.Company Presentation

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November 2012

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 currentp p , y p j g p yviews with respect to future events and financial performance. These views are based on currentassumptions which are subject to various risks and which may change over time. No assurance can begiven that future events will occur, that projections will be achieved, or that the Company’s assumptions arecorrect. Actual results may differ materially from those projected. A prospective investor must make its owny y p j p pindependent decision regarding investment in securities.

Opinions expressed herein reflect the judgement of the Company as of the date of this presentation andmay be subject to change without notice if the Company becomes aware of any information, whetherspecific to the Company its business or in general which may have a material impact on any suchspecific to the Company, its business, or in general, which may have a material impact on any suchopinions.

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 therey qhas 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 orsupplements on this presentation.

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

© Golden Agri-Resources Ltd. All rights reserved.

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Table of Contents

SECTION 1 Corporate Overview 3

SECTION 2 Key Competitive Strengths 8

SECTION 3 Growth Strategy 16

SECTION 4 Financial Performance 20

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Section 1Corporate Overview

Overview of GAR

• GAR is listed on SGX since 1999 • The largest Indonesian plantation group with

i t t d ti f th d ti f lintegrated operations for the production of palm oil-based edible oil and fat products

• Integrated operations in China including a deep sea port, soybean crushing plants, and

Planted Area (as of 30 Sep 2012)1 : 459,500 ha

Plantation Profile

y gproduction of refined edible oil products

( p ) ,Output of Palm Products2

YTD Sep 2012 : 2,058,000 MTFY 2011 : 2,640,000 MT

Key Products

• Cooking Oil• Crude palm oil (CPO)

• Margarine

• Shortening

• Specialty Fats

• Palm Kernel (PK)

• Palm Kernel Oil (PKO)

• Palm Kernel Meal

Financial Statistics (in US$ million)

YTD Sep 2012 FY 2011Revenue : 4,533 5,953 p y

• Stearin

• Oleochemicals

• Soybean Oil

• Soybean MealNotes:

EBITDA : 643 942Net Profit3 : 356 571Equity4 : 8,503 8,025

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1. Including plasma2. CPO and PK3. Net profit attributable to owners of the Company excluding effect of net gain from changes in fair value of biological assets, foreign exchange gain and

exceptional item4. Attributable to owners of the Company

Corporate and Shareholding Structure

50 05%

PublicFlambo International Ltd1

49 95%

Golden Agri-Resources Ltd.(Market Cap: US$6.5 bn SGX listed)2

50.05%

100% 100%

49.95%

100% 100%

Indonesia Operations China Operations

69%

PT Ivo Mas Tunggal(Oil palm plantation)

PT SMART Tbk3

(Oil palm plantation, refinery and marketing)97%

100%

Ningbo Port (Deep sea oil & grain port)

Shining Gold (Oilseed crushing & refinery)

69%

100%( p p )

PT Sawit Mas Sejahtera(Oil palm plantation)

PT Sinar Kencana Inti Perkasa

100%

100%

Zhuhai Gold (Refined products)

( g y)

85%

100% Fl ti I t ti lPT Sinar Kencana Inti Perkasa(Oil palm plantation)

100% 100% Florentina International(Manufacturing and marketing of

food products) PT Binasawit Abadipratama

(Oil palm plantation)100%

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Notes:1. Widjaja Family has aggregate ownership of 49.95% in GAR2. Market capitalisation as of 12 November 20123. Listed on the Indonesia Stock Exchange4. Simplified organisation structure with principal operating subsidiaries

Corporate Governance

GAR makes continuous efforts towards better corporate governance practices

Shareholding Structure Board of Directors

• Clear and independent shareholding structure• High free float with 50.05% direct public ownership• High liquidity with GAR consistently among the top

g

• Nine board members including six not related to the Controlling Shareholder: four Independent and two Executive Directors

High liquidity with GAR consistently among the top 5 traded stocks on the Singapore Exchange and inclusion into the MSCI AC Far East Ex-Japan since May 2008 and the STI since Sep 2008

• Proportion of Independent Directors more than the one third stipulated by Singapore Code of Corporate Governance

• Audit Committee, Nominating Committee and , gRemuneration Committee headed by Independent Directors

Interested Person Transactions Corporate Transparency

• GAR operates independently as each business group of Widjaja Family has its own separate management team and independent directors

• Quarterly Analysts and Press Briefings• Almost daily meetings with investors and analysts,

participation in international road shows and • Interested person transactions are minimal and

based on arms-length commercial terms, transparent and subject to Independent Directors’ and/or shareholders’ approval

investor forums• Comprehensive website with dedicated IR section• GAR has approximately twenty analysts covering

its stock

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its stock• Awarded by SIAS as one of the Most Transparent

Companies in 2012

Largest Indonesian Plantation Group withIntegrated Operations

Basic product Processing Processed product

Research & Development

Collaborate with Plantations &

Harvesting CPO milling CPO Refining Branded & Unbranded Cooking Oil

MargarinePlanted area1,2

Total 459,502 haNo of mills38

Production2,152,809 MT

No of refineries4

Seedling

CIRAD

Margarine

Specialty Fats

Palm kernel Kernel Palm Kernel

• Nucleus 363,586 ha• Plasma 95,916 ha

Mature area2

418,137 ha

Capacity1

10,270,000 MT FFB p.a.

(FY 2011)1,667,659 MT (YTD Sep 2012)

Capacity1

1,380,000 MT p.a.

Dami Mas Seed Palm kernel (PK)

Kernel crushing MealFFB production2

8,508,746 MT (FY 2011)6,868,861 MT ( S )

Palm Kernel OilProduction

487,298 MT No of plants8

Dami Mas Seed Garden

Capacity1

24,000,000 seeds p a (YTD Sep 2012) (FY 2011)

390,102 MT (YTD Sep 2012)

Capacity1

819,000 MT p.a.

p.a.

OleochemicalFatty Acids

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Notes:1. Data as of September 20122. Including plasma

Capacity1

88,000 MT p.a.

Glycerine

Section 2Key Competitive Strengths

Key Competitive Strengths

GAR is a leader in the high growth palm oil industry in Indonesia

Largest Indonesian plantation

groups with

Management

vertically integrated operations

Sustained growth expertise and unrivalled technology platform

underpin high production yields

Sustained growth through expansion in

upstream and downstream

ContinuousWell establisheddownstream business

in both domestic and export

Continuous strong

commitment to the environment

and social

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markets and social community

Largest Indonesian Plantation Group with Vertically Integrated OperationsLargest plantation group in Indonesia and second largest globally in terms of planted area Indonesia Malaysia‘000 ha

522300400500600

460269 290 305

112

522

158 187324

0100200300

GAR Astra Agro Wilmar Indo Agri (incl Lonsum)

Sampoerna Sime Darby IOI KLK Felda

Largest plantation group in Indonesia and third largest globally in terms of CPO d ti 1 2

Lonsum)Planted

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

CPO production 1,2

3 000

4,000

Indonesia Malaysia‘000 MT

2,153 1,268 1,779

838 345 2,442 668 730

3,300

0

1,000

2,000

3,000

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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

0GAR Astra Agro Wilmar Indo Agri Sampoerna Sime Darby IOI KLK Felda

CPO

Management Expertise Delivers High Production Yields

GAR is one of the lowest cost producers with industry-leading efficienciesCPO yield per hectare1 & 2FFB yield per hectare 1

5.00 4.985.0

5.5

6.0

MT/

ha)

21.8 22.1

19.821

23

)

4.083.91

3.5

4.0

4.5(M

17.7

17

19

(MT/

ha)

3.0GAR Astra Agro Wilmar Indo Agri

P l i th hi h t i ldi t bl il

15GAR Astra Agro Wilmar Indo Agri

Note:1. Based on full fiscal year data

Notes:1. Based on full fiscal year data2. CPO yield/ha is derived from FFB yield/ha multiply by extraction rate

Immature (1‐3 yrs)

9%

Old1

Old 2(> 25 yrs)

4%

Palm is the highest yielding vegetable oilGAR Age Profile 1

5.0

3.74

5

6

Young(4‐6 yrs)20%

P i 2

Old 1(19‐25 yrs)

21%

0.7 0.6 0.51

2

3

4

(MT/

ha)

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Prime 1(7‐12 yrs)

13%

Prime 2 (13‐18 yrs)

33%

Source: Oil World and CompanyNote:1. Data as of 30 Sep 2012, include plasma. Average age is 13 years

0Palm Oil

(GAR)Palm Oil(Industry)

Rape Oil Sun Oil Soy Oil

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 addressFacilitates 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)

1,7941 666

2,0731,9671,890

2,347 2,273

1 8002,100 2,400 2,700 2,640

743

1,343 1,4331,201

1,039

1,666

600 900

1,200 1,500 1,800

-300

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CPO PK Note:1. 2010 output declined due to unfavourable weather conditions

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 conditionsespecially with more volatile climate conditions

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

• GAR utilises GPS-guided aerial manuring to cover expansive plantation hectarage

G• With this advanced aerial manuring, GAR can tighten its cost of production compared to manual application

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

(French Agricultural Research Centre for International Development)

Strong Commitment to the Environment and Community for Sustainable Palm Oil

Sustainable Practices for Existing PlantationsZero waste policy by recycling of mill wastes (EmptyZero waste policy by recycling of mill wastes (Empty Fruit Bunch and Palm Oil Mill Effluent)Precise dosage in fertiliser application plan to minimise risk 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) forests

Enhanced Planting Procedures

High conservation value (HCV) forest areasPeat lands of any depth

Continuous yield improvement in nucleus and plasma plantations managed by the CompanyZero burning policy in land clearingZero 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

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Holistic Approach to Sustainability

Progress update on sustainability• In Sep 2012, we have 1 mill and 3 estates receiving Roundtable on Sustainable Palm Oil (RSPO)In Sep 2012, we have 1 mill and 3 estates receiving Roundtable on Sustainable Palm Oil (RSPO)

certification, bringing total RSPO-certified units of 8 mills and 67,514 ha of estates• To date, GAR has received International Sustainability and Carbon Certification (ISCC) covering

99,527 ha of plantations (including smallholder estates of 32,873 ha), 9 mills and 3 bulking stations • Continue to engage our stakeholders by sharing our sustainability journey including our• Continue to engage our stakeholders by sharing our sustainability journey including our

sustainability policy in several events such as RSPO 10th Annual Roundtable Meeting in Singapore and 7th Annual Sustainable Supply Chain Summit organized by Ethical Corporation in London in Oct 2012

Next steps on High Carbon Stock Forest Study• The Team (GAR, SMART, The Forest Trust and Greenpeace)

• Presenting the findingsH ldi id di i• Holding wider discussions

• Gathering feedback on study and outcomes• Upon gathering the required input and feedback from all stakeholdes, GAR intends to develop its

action plans for how it will proceed further with this methodology and will announce this in due course

• To be successful, all stakeholders must work together• Local communities – Multi-stakeholder collaboration to find solutions to convince local communities

on value of conservation

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• Government – Support to establish and implement land swap process• Industry – Support of key industry players

Section 3Growth Strategy

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Strategic Priorities

Build on core competitive strengths to maximize long-term shareholder returnsreturns

Leverage operating scale and relentless focus on operational excellence

and

Upstream Downstream

Gro

wth

ta

bilit

yus

tain

ed

Prof

i

• Increase downstream capability to shift product mix to higher value-added products of cooking oils, margarine & fats

• Strategically strengthen position in

• Sustain growth through expansion of planted area by way of green field and acquisition

• Sustain cost leadership through operational

Su

Strategically strengthen position in oleochemicals through innovation and customer solutions

• Develop destination business by extending distribution reach to key countries

Sustain cost leadership through operational efficiencies

• Continuous improvement of our elite seeds to enhance long-term yields

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Continued strong commitment to environmental and social responsibility

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Downstream – Indonesia Operations

Consistent expansion of downstream capacity to focus on higher value-added productsCapacity Sales volume

1200

1400

90

100 Our Brands

Capacity (‘000 tpa)

Sales volume (‘000 MT)

800

1000

70

80Kernel crushingcapacity

Refinerycapacity

200

400

600

40

50

60p y

Branded salesvolume

0

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

30

• YTD Sep 2012 branded sales volume increased by 28% year-on-year• Our prominent cooking oil brands, Filma and Kunci Mas, are among the leaders in Indonesia• Nation-wide coverage with hundreds of distributors and thousands of retailers

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at o de co e age t u d eds o d st buto s a d t ousa ds o eta e s• Growing foothold in international markets with bulk cooking oil

Downstream – China Operations

China remains one of the largest and fastest growing edible oils consumers despite current challenging environmentp g gGAR will strategically strenghten its presence in China by:

Developing distribution channels to enter new areas in ChinaChinaEnhance relationships with end customers by providing additional servicesActively manage flexible production to optimise profitsPursuing value-added products such as specialty fats

F iliti D 2011 S 2012Facilities Dec 2011 Sep 2012Refinery 380,000 MT 776,000 MT

Crushing 1.0 million MT 2.3 million MT

Note: Annual capacity

Noodle Manufacturing 5 billion packets 5 billion packets

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Section 4Financial Performance

Financial Performance

(in US$ million) YTD Sep 2012

YTD Sep 2011 2011 2010 2009

Revenue 4,533 4,625 5,953 3,505 2,294, , , , ,

Gross Profit 1,250 1,450 1,837 955 509

Gross Profit Margin 28% 31% 31% 27% 22%

Operating Profit 525 659 1 700 1 915 618Operating Profit 525 659 1,700 1,915 618

Tax1 (132) (155) (428) (482) 21

Core Net Profit2 368 480 571 387 203

Addition:

- Net gain from changes in fair value of biological assets (net of tax and non-controlling interests) - - 672 1,012 406

- Foreign exchange gain/(loss) (net of non-controlling interests) (12) 30 19 30 (1)

- Exceptional items, net - 10 6 (6) (1)

Net Profit attributable to owners of the Company 356 520 1,268 1,423 607

EPS (in US$ cent)3 2 77 4 29 10 45 11 72 5 25EPS (in US$ cent) 2.77 4.29 10.45 11.72 5.25

EBITDA 643 761 942 661 401

EBITDA margin 14% 16% 16% 19% 17%

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Notes:1. Full Year figures include deferred tax provided on net gain from changes in fair value of biological assets 2. Net profit attributable to owners of the Company, excluding effect of net gain from changes in fair value of biological assets, foreign exchange

gain/(loss) and exceptional items3. Based on weighted average numbers of shares

Revenue by Product

YTD Sep 2012 revenue of US$4.5 billion mainly from CPO and refined palm oil based products

By CountryBy Product

Soybean

Soybean Oil4%

Others6%

PK1%

Indonesia l

CPO44%Branded

Products

yMeal7%

Local11%China Local

21%

Unbranded Refined

Palm P d t

8%

Indonesia Export

Products30%

68%

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Financial PositionStrong financial position with low gearing

(in US$ million) 30-Sep-12 31-Dec-11 Change ( $ ) p g

Total Assets 12,641 11,837 7%

Cash and Short-Term Investments 499 370 35%

Trade Receivables and Inventories 1,182 985 20%

Fixed Assets1 9,759 9,565 2%

Total Liabilities2 4 047 3 725 9%Total Liabilities 4,047 3,725 9%

Interest Bearing Debts 1,372 1,086 26%

Total Equity Attributable to Owners of the Company 8,503 8,025 6%

Net Debt3/Equity4 Ratio 0.10x 0.09x

Net Debt3/Total Assets 0.07x 0.06x

Net Debt3/EBITDA5 1 02x 0 73xNet Debt /EBITDA 1.02x 0.73x

EBITDA/Interest 11.91x 14.70x

Notes:

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Notes:1. Includes Biological Assets, Property, Plant and Equipment, and Investment Property2. Include Deferred Tax Liabilities of US$1.88 billion per 30 Sep 2012 and 31 Dec 2011, respectively which mainly arising from the accumulated gain of the revaluation of biological assets3. Interest bearing debts less cash and short-term investments4. Equity attributable to owners of the Company5. 30 Sep 2012 ratio is based on annualised EBITDA

Contact Us

If you need further information, please contact:

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

Telephone : +65 65900800Facsimile : +65 65900887Facsimile : +65 65900887

www.goldenagri.com.sg

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

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