CIMB Annual Malaysia Corporate Day 4 January 2019 2 Disclaimer - - PowerPoint PPT Presentation

CIMB Annual Malaysia Corporate Day

4 January 2019

Disclaimer

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This document is for the purposes of information only and is not intended to form the basis of any investment decision. This presentation may contain forward- looking statements by Sime Darby P lantation that reflect management’s current expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are based on various assumptions and made subject to a number of risks, uncertainties and contingencies and accordingly, actual results, performance or achievements may differ materially and significantly from those discussed in the forward- looking statements. Such statements are not and should not be construed as a representation, warranty or undertaking as to the future performance or achievements of Sime Darby Plantation and Sime Darby Plantation assumes no obligation or responsibility to update any such statements. No representation or warranty, express or implied, is given by or on behalf of Sime Darby P lantation or its related corporations (including without limitation, their respective shareholders, directors, officers, employees, agents, partners, associates and advisers) (collectively, the “Parties”) as to the quality, accuracy, reliability, fairness or completeness of the information contained in this presentation or its contents or any oral or written communication in connection with the contents contained in this presentation (collectively, the “Information”), or that reasonable care has been taken in compiling or preparing the Information. None

• f the P

arties shall be liable or responsible for any budget, forecast or forward-looking statements or other projections of any nature or any opinion which may have been expressed or otherwise contained or referred to in the Information. The Information is and shall remain the exclusive property of Sime Darby P lantation and nothing herein shall give, or shall be construed as giving, to any recipient(s) or party any right, title, ownership, interest, license or any other right whatsoever in or to the Information herein. The recipient(s) acknowledges and agrees that this presentation and the Information are confidential and shall be held in complete confidence by the recipient(s). All the images, pictures and photos including design drawings in relation to the company’s property development projects contained in this document are artist impression only and are subject to variation, modifications and substitution as may be recommended by the company’s consultants and/or relevant authorities.

SEC T I O N PAG E 1 Company Overview 4 2 Key Investment Highlights 9 3 Business Strategies & Future Plans 24 4 Industry Outlook 35 5 Financial Overview 42 6 Appendix 49

Table of Contents

Company Overview

Business Overview

Integrated Plantation Company Involved in the Entire Palm Oil Value Chain

5

Upstream Downstream Others

Oil palm, rubber & sugarcane estates

• Developing, cultivating and managing
• il palm, rubber and sugarcane

plantation estates Milling of FFB and processing & sales

• Milling of FFB into CPO and PK
• Processing and sales of rubber and

sugarcane Others

• Cattle rearing and beef production

Bulk and refined oils & fats

• Production and sales of refined oils

and fats (which includes specialty and end-user oils and fats) Oleochemicals, biodiesel products & derivatives

• Production and sales of
• leochemicals, biodiesel products

and derivatives R&D

• Focused on yield and productivity

improvements, increasing revenue streams and developing sustainable practices while pursuing innovative strategies Renewables business

• Development of green technology

and renewable energy which includes biogas and composting Agribusiness

• Provision of agriculture products and

services

Oil palm estate Mill Refinery Food application High-yielding genome seeds Renewables

Snapshot of Oil Palm Plantation Operational Statistics

6

FY17/18 unless

• therwise stated

Malaysia Indonesia Liberia PNG & Solomon Islands Total Total oil palm planted area(ha) 301,027 201,220 10,442 87,304 599,993 Mature area (ha) 252,055 158,180 9,701 77,500 497,436 Palm tree age profile & average tree age (Years) FFB production (mn MT/year) 5.822 2.615 0.065 1.731 10.233 CPO production (Total) (mn MT/year) 1.419 0.710 0.016 0.508 2.653 PK production (Total) (mn MT/year) 0.357 0.160 0.003 0.130 0.650 FFB yield (MT/ha) 23.13 16.40 6.78 22.36 20.51 OER 20.40 21.39 20.60 22.41 21.02 KER 5.13 4.80 3.97 5.75 5.15

16% 22% 35% 18% 9%

<3 yrs 4-8 yrs 9-18 yrs 19-22 yrs >22 yrs

21% 12% 19% 38% 10%

12.7 yrs

7% 93%

14.1 yrs

11% 26% 48% 12% 3%

5.4 yrs 11.4 yrs

17% 20% 32% 23% 8%

12.8 yrs

Snapshot of Downstream Operations

7

Differentiated Food Bulk Processing

Note:

* Excluding Industrial Enterprises (IE) Soya in Thailand and GH Nhabe in Vietnam Figures as at 30 June 2018

10*

Refineries

~4 million MT

Refining Capacity

73%*

Average Refinery Utilisation

Key Products

Refined bulk products produced by the Group’s bulk refineries: RBD Olein, RBD Stearin, CPKO, RBD PKO, etc. Ingredients produced by the Group’s refineries: Bakery fats, specialty oils, confectionery fats Non-food products produced by the Group’s biodiesel, oleochemicals and nutrition plants

Downstream – Our renowned brands and winning products are used worldwide

8 * SDFBM & SDEPL is the sales and marketing arm of SDP which sells B2C products manufactured by Malaysian SDP refineries & third parties

Jomalina Nuri Kempas Austral Nusantara Morakot Unimills Liverpool H&K Kumbango

Bulk Bulk Bulk Bulk B 2 B B 2 C Vema

(no logo)

T OP 3 B RANDS

( I N T E R M S O F R E V E N U E ) SD Food & Beverage Malaysia (SDFBM)* & SD Edible Products Ltd (SDEPL)*

Morakot

Key Investment Highlights

Investment Highlights

10

Strong Investment Proposition Well Positioned to Benefit from Sound Industry Fundamentals & Strong Demand Growth Trends The World’s Largest Oil Palm Plantation Company by Oil Palm Planted Area, with Established Reputation as the World’s Largest Producer of Certified Sustainable Palm Oil Fully Integrated Business Model with Diversified Operations Along the Palm Oil Value Chain Innovative & Market Leading R&D Supports Operational Efficiency & Productivity Experienced and Sound Board & Management Team 1 2 3 5 4 6

Sime Darby Plantation’s Strong Investment Proposition

11

1

21 MT/ha 23 MT/ha

FY18 FY23 Target

FFB PRODUCTION GROWTH POTENTIAL STRENGTHENING DOWNSTREAM CONTRIBUTIONS & MARGINS LOWERING COST IMPROVING GEARING & CASH FLOW HIGH DIVIDEND POLICY

• f Net Profit

F F B Y I E L D

61% 40%

As at 30 Jun 2017 As at 30 Jun 2018

G R O S S G E A R I N G

12

1 Estimated based on global planted area of 21.5 mn ha worldwide 2 Based on global CPO production of 67.9 mn MT in 2017

Note: Figures as at 30 Jun 2018

World’s Largest Oil Palm Plantation Company with More Than 600,000 Hectares of Planted Area

2

We are the world’s largest oil palm plantation company by oil palm planted area with total landbank of more than 987,000 hectares across Malaysia, Indonesia, PNG & Liberia

20%

Leader in Sustainability – World’s Largest Producer of CSPO

• f Global CSPO

Production Capacity1

~600,000 hectares

World’s Largest Oil Palm Plantation Company (by planted area)

4 mn MT p.a.

Total Refining Capacity (12 Refineries)

Market Leading R&D

Edison Award 2017 under the Energy and Sustainability category

(Genome Select Oil Palm Project)

248

Estates

72

Mills

11

Crushing Plants

(inclusive of soy crushing plant)

2.65 mn MT

FY18 Total CPO Production (~4% of Global Market Share2)

13

Our Journey to Sustainability

2

1985

• Introduced

Zero burning 1990

• Biological

control for IPM 1994

• EMS-ISO

14001 1992

• EUNEP Global 500

Roll of Honour for commercialisation of Zero Burning practice 2002

• Founding

member

• f RSPO
• POME

utilisation as compost 2008

• Achieved first

RSPO certification 2004

• First Global GAP

certification 2010

• First

certification

• f SCCS and

ISCC

• Pioneered the Zero Burning Policy in 1985
• One of the founding members of RSPO
• Largest producer of CSPO: Malaysia 100%, PNG 100% & Indonesia 96% certified
• No deforestation of primary and virgin forest
• No new development on peatlands
• No development of HCS areas, once defined
• Committed to Environmental and Social Principles – HCV, Human Rights & FPIC

2012

• Became largest

producer of CSPO globally 2015

• Acquisition of a fully

RSPO certified & traceable palm oil producer, New Britain Palm Oil 2016

• Launched the

Responsible Agriculture Charter (RAC)

• Commitment to

the HCS Convergence Agreement 2017

• Launch of the

Human Rights Charter (HRC)

• Commitment to

balanced development

2018

• nwards

Moving Forward

• Compliant to the RAC &

HRC

• 100% RSPO certified
• Low carbon/carbon neutral

Palm Products

• 100% Traceability
• Best-in-class HCV/HCS,

water conservation 2014

• Founding

member of the HCS Science Study 2013

• First KKPA

smallholders certified to RSPO in Indonesia

14

As a signatory to the S ustainable P alm Oil Manifesto, we are committed to implementing leading industry practices around High Conservation Value and HCS in new developments

C E R T I F I C AT I O N S TAT U S

High Carbon Stock (HCS) Commitment Responsible Agriculture Charter (RAC)

Launched in Sep’16, the RAC is a summary of SDP’s commitments surrounding:

• Human rights & social

development

• The environment
• Corporate integrity

97%

RSPO-certified

100%

MALAYSIA

Sime Darby launched it’s Human Rights Charter to articulate its commitment in respecting human rights in line with the United Nations Guiding Principles on Business and Human Rights

Human Rights Charter (HRC)

96%

INDONESIA

100%

PNG & SI

R S P O M S P O I S P O

100%

MSPO-certified

96%

ISPO-certified Target to be 100% RSPO-certified

A s a t 3 0 J u n e 2 0 1 8 Ta r g e t

Target to be 100% ISPO- certified by early 2019

Sustainability – Committed to Good Agriculture Practices

2

The charter states

• ur

aspirations across the value chain in achieving prosperity, via enabling high levels of productivity in delivering sustainable development

Innovation & Productivity Charter (IPC)

15

Sustainability – Traceability

2

As at 30 Jun 2018

Sime Darby Open Palm Traceability Dashboard provides Sime Darby Plantation’s customers with access to source the products purchased from Sime Darby Plantation

The dashboard and the list of mills can be found at: http://www.simedarbyplantation.com/sustainability/open-palm-traceability-dashboard

O P E N PA L M T R A C E A B I L I T Y D A S H B O A R D

Upstream – Mill Traceable up to plantations Downstream – Refinery, KCPs & Biodiesel Traceable up to plantations Traceable up to mills 85.7% Traceable CPO Palm Kernel 100% Traceable 77.5% Traceable CPO Palm Kernel FFB 84.0% Traceable

SDP targets for Upstream – Mills to be 100% traceable up to plantations by end of 2020

99.3%

Traceable

100 % of S D P ’s Downstream is traceable up to mills, with the comprehensive list of mills supplying to SDP available on the Dashboard

16 Source: Company

Sustainability – Driving Market Demand

2

11.8mn MT

Global CSPO Production Capacity (as of August 2018)

• All of SD Plantation’s refineries are RSPO-

certified

• New Britain Oils’ refinery in Liverpool is a fully

Certified Segregated Refinery

• We have modified and expanded our milling

and refinery capacity to increase production of Premium Quality (PQ) oil

• PQ oil offers low free fatty acid oil blends

NURI REFINERY (MALAYSIA)

NEW BRITAIN OILS (UK)

CSPO PRODUCTION CAPACITY

17

Strengthening our position as the world’s #1 producer of certified sustainable palm oil (CSPO)

BEST SUSTAINABLE PALM OIL LEADER

SIME DARBY PLANTATION

Recognises companies in Malaysia which have demonstrated extraordinary performance in the field of sustainability to the long term benefit of the Malaysian society and economy, in line with EU sustainable development values and United Nations Sustainable Development Goals (SDGs) based on initiatives which have made a positive contribution to the environment, communities and societies during the year

Sustainability

2

18

Geographical Breakdown for FY18 Total Revenue Market Reach Extends to the Top 5 Global Palm Oil Consumer Upstream Operations

• Presence in 5 Countries - Malaysia, Indonesia, PNG &

Solomon Islands, Liberia

• Developing, cultivating and managing oil palm,

rubber & sugarcane plantation estates

• Operates and manages 249 plantation estates and

72 palm oil mills

• Cattle rearing & beef production

Downstream Operations

• Operating across 16 Countries - Malaysia, Indonesia,

Netherlands, Thailand, United Kingdom, PNG, Vietnam & others

• Production & sales of bulk & refined oils and fats,
• leochemicals, biodiesel products and derivatives
• Manages and operates 12 refineries with a total

refinery capacity of 4 mm MT/year

FY18 Total Revenue = RM14,369 mm

74% of FY18 revenue is derived from the Top 5 Global Palm Oil Consuming Countries/Region

(from Malaysia, Europe, India, Indonesia & China)

Our wide & diverse geographical reach of business operations will allow us to leverage on strong industry fundamentals

Strong Geographical Presence

Source: Frost & Sullivan, company

Well Positioned to Benefit from Sound Industry Fundamentals & Strong Demand Growth Trends

3

Malaysia 23% Europe 22% India 19% Other SEA 11% Indonesia 7% Other Countries 7% South Africa 5% China 3% PNG & SI 3% Liberia 0.2%

19

Well Positioned to Benefit from Sound Industry Fundamentals & Strong Demand Growth Trends (cont’d)

3

Sime Darby Plantation is well positioned to tap into the fast growing demand in Asia Pacific

38 48 63 68 71 76 89 101 15 15 17 18 18 18 18 19 10 9 10 10 10 11 11 12 31 38 46 50 52 56 64 74 2005 2010 2015 2017 2018 2020 2025 2030 Asia Europe US RoW 94 111 136 146 151 160 183 205 12 26 37 44 48 54 59 64 2005 2010 2015 2017 2018 2020 2025 2030 Food Non Food

5.9 5.1 6.9 6.7 6.5 2.7 1.7 2.7 2.2 3.7 4.7 5.1 6.6 7.3 6.5 3.1 1.4 2.2 2.9 3.7 4.8 5.3 6.0 7.7 6.3 3.9 1.6 1.7 1.7 3.6 4.8 5.3 5.8 7.7 6.2 3.9 1.6 1.7 1.5 3.6 4.8 5.4 5.6 7.7 6.1 4.1 1.6 1.6 1.4 3.6 Malaysia Indonesia China India Emerging & Developing Asia Sub-Saharan Africa United Kingdom EU U.S. World

2017 2018F 2021F 2022F 2023F

Source: LMC Oilseeds & Oils Report 2018, USDA, IMF October 2018

G i ven Asia’s population density and the growing income of its populace, additional demand growth from the region will be strong Global Vegetable Oil Consumption is expected to grow at 2.8% by 2030 Vegetable Oil in Food Consumption will be driven by Asia Malaysia and Indonesia represents 8 5 % of global C P O production . S D P has strong presence in these countries Rising personal wealth and consumption are transforming Asia’s economies and markets

2017 – 2030 CAGR Global: 2.8%

106 173 189 199 214 241 270

in mn MT 2017 – 2030 CAGR Asia: 3.1% Europe: 0.5% U.S.: 0.9%

in mil MT

2013 – 2019 CAGR Global: 4.2% as a % of global production

GDP Growth Rates (%) – 2017 - 2023

28.5 30.5 33.0 32.0 36.0 38.5 40.5 19.3 20.2 19.9 17.7 18.919.68320.5 0.5 0.5 0.5 0.6 0.7 0.6 0.6 8.0 8.1 8.3 8.6 9.7 10.5 10.6

12/13 13/14 14/15 15/16 16/17 17/18F 18/19F

Indonesia Malaysia Papua New Guinea RoW

84.8% 85.5% 85.6% 84.4% 84.0% 84.1% 84.4%

136

20

Fully Integrated Business Model with Diversified Operations Along the Palm Oil Value Chain

4

Economies of scale & cost synergies Diversification of commodity price volatility

 Shared use of integrated processing facilities & infrastructure  Extensive sales and distribution network  Flexibility to channel products & resources to markets with greater demand  Ability to convert by-products (palm fibres, sludge oil, palm oil mill effluent, empty

fruit bunches, palm kernel expeller) into applications such as animal nutrition and tocotrienols

 Strengthen our ability to trade around our own assets  Allows diversification of upstream operations which are susceptible to

volatile commodity prices

 More stable and resilient earnings as volatilities in segment margins are

mitigated

 Ability to better manage commodity price volatility

• Flexibility to channel CPO to various segments of downstream

process by capitalizing on the different price characteristics and feedstock types in the downstream segment

With a fully integrated business model, we are able to diversify our earnings risk from volatility of commodity price and leverage on operational synergies

1 2 Key Benefits of a Fully Integrated Business Model

Upstream Downstream

Seed Production Oil Palm Nursery Estate Management Mills – CPO & PK Production Bulk Refineries/ Facilities Specialty Food Refineries Non- Food Bulk Sales Rubber/Sugar Cane/Cattle Products Smallholders Aggregation Trading & Aggregation of CPO Oleo- chemicals Biodiesel Compost Gasification/Biogas Animal Feed Tocotrienol Biodiesel Palm Oil Products

• Cooking Oil
• Specialty Oils &

Fats

• Refined PKO
• Spreads
• Shortenings
• Infant Formula
• Dairy Fat

Replacers WASTE TO WEALTH By-Product Frond Palm Fibres, Sludge Oil, POME, EFB, PKE PFAD

21

Market Leading R&D Supports Operational Efficiency and Productivity

5

Market Leading Research & Development

• Global network of 5 R&D centres in Malaysia, Indonesia & PNG,

and 3 innovation centres in Malaysia, the Netherlands and South Africa

• Supports operational efficiency and improvements to upstream

productivity, and we develop sustainable practices while pursuing transformational innovative strategies

• Development of new palm oil breed via a genomic selection and

prediction process

• Malaysia’s first company to win the coveted Edison Award,

which recognised its groundbreaking genome initiative

• Research and production of high yield planting material such as

new Dami seeds progenies which are expected to deliver better

• il yield improvements than its predecessors

Adopt best agro-management practices

• Precision agriculture to improve yield
• Efficient water management and irrigation system
• Integrated pest management programmes
• Mechanisation initiatives to improve manpower ratio, cost

efficiency and productivity

• Digitisation initiatives

22

Renaka Ramachandran Chief Financial Officer Datuk Franki Anthony Dass Chief Advisor and Value Officer Tan Sri Dato’ Abdul Ghani Othman Chairman and Non- Independent Non- Executive Director Tan Sri Dato’ Seri Mohd Bakke Salleh Executive Deputy Chairman and Managing Director Tan Sri Dato’ Seri Mohd Bakke Salleh Executive Deputy Chairman and Managing Director Mohamad Helmy Othman Basha Deputy To Managing Director & Chief Operating Officer, Upstream

• Dr. Simon Lord

Chief Sustainability Officer Mohd Haris Mohd Arshad Chief Operating Officer, Downstream

Our Board and management team have the ability to drive our Group through transformation into the next phase of growth which is to innovate, execute and create value

Dato’ Mohd Nizam Zainordin Non-Independent Non- Executive Director Tan Sri Datuk Dr. Yusof Basiran Independent Non- Executive Director Zainal Abidin Jamal Non-Independent Non- Executive Director Muhammad Lutfi Independent Non- Executive Director Tan Ting Min Independent Non- Executive Director

Board of Directors Management Team

Board members have held prominent positions and directorships in areas such as plantation, banking and finance sectors and in governmental, regulatory and professional bodies Experienced management team with an average of about 15 years

• f experience

in the plantation industry

• Dr. Shariman

Alwani Chief Strategy & Innovation Officer Eliza Mohamed Chief Communications Officer Lee Ai Leng Group General Counsel

Experienced and Sound Board & Management Team

6

Zulkifli Zainal Abidin Chief Human Resources Officer John Lou Leong Kok Independent Non- Executive Director Datuk Zaiton Mohd Hassan Senior Independent Non- Executive Director Dato’ Mohamad Nasir

• Ab. Latif

Non-Independent Non- Executive Director

• Dr. Harikrishna

Kulaveerasingam Chief Research & Development Officer Norzilah Megawati Abdul Rahman Group Secretary Gajani Nayagi Seeveneserajah Acting Chief Risk Officer Nik Maziah Nik Mustapha Chief Internal Auditor

Appointment of Mohamad Helmy Othman Basha as Deputy to the Managing Director

23

Mohamad Helmy Othman Basha

Deputy To Managing Director & Chief Operating Officer, Upstream

(with effect from 1 January 2019, until the retirement of Tan Sri Mohd Bakke Salleh as Executive Deputy Chairman & Managing Director in June 2019)

The appointment is part of the Company’s plan to ensure seamless succession of the top leadership, subject to the performance appraisal and final approval from the Board

• f Directors.

Sime Darby Plantation continues to strive to create more value and deliver sustainable results for our stakeholders. AGE: 51 years old EXPERIENCE: >18 years in the plantation industry QUALIFICATIONS/ASSOCIATION:

• Fellow of the Association of Chartered Certified Accountants (ACCA)
• Member of the Malaysian Institute of Accountants
• President of the Malayan Agricultural Producers Association

CAREER JOURNEY:

• Auditor – Wellers, Accountants, Oxford, UK
• Various roles in Shell Group, Malaysia
• Finance & Administration Manager – Guthrie Property Holdings Sdn Bhd
• Various leadership positions in Kumpulan Guthrie Berhad including Chief Executive

Officer – Highlands & Lowlands Berhad and Guthrie Ropel Berhad (Key member of the Guthrie team that acquired PT Minamas Gemilang Plantation in Indonesia in 2001)

• Head, Upstream Malaysia – Sime Darby Plantation Sdn Bhd (Also headed the

Company’s overseas expansion into Africa)

• Founder – Xcellence Alliance Sdn Bhd and Chemara Palmea Holdings Bhd
• Head, Plantation Services & Special Projects – Sime Darby Plantation Berhad
• Appointed Chief Operating Officer, Upstream in 2017 – Sime Darby Plantation Berhad

6 Ensuring Smooth Leadership Transition

Business Strategies & Future Plans

The Strategy Moving Forward – What is Different?

25

‘The Leading Integrated Global Palm Oil Player’

The global brand for plantation sustainability VISION GROWTH STRATEGY TARGETS BY 2023

U P S T R E A M

DRIVING OPERATIONAL EXCELLENCE VIA DIGITISATION

D OW N S T R E A M I N T E G R AT I O N 1 2 3

Towards Mission 23:23

Achieving FFB yields of 23 MT/ha & OER of 23% by 2023

Higher Downstream PBIT contribution

20% of PBIT within the next 5 years

Integrated economics across the value chain SERVING THE CUSTOMERS OF THE FUTURE MAXIMISING RETURNS ACROSS THE PALM OIL VALUE CHAIN

Relentless Focus on Execution to Drive Value Creation

Value Creation

Establishment of Transformation Office to ensure effective execution of strategies

26

• Unlocking value creation
• Drive execution and de-bottleneck initiatives
• Track progress on value creation initiatives
• Assess and monitor on weekly basis and

ensure accountability

TRANSFORMATION OFFICE

UPSTREAM SPECIAL PROJECTS DIGITAL DOWNSTREAM CASH CONTROL TOWER RESEARCH & DEVELOPMENT ORGANISATION / PEOPLE

work streams

7

FINANCIAL ALIGNMENT

Value creation targets

PROGRAM MANAGEMENT PLATFORM

Improve tracking efficiency & manage value creation progress

RISE to APEX

Driving performance through culture change

27

Accelerating Performance Excellence Sustaining Performance Excellence Measure: PATAMI Growth Measure: Organisational Health Index (OHI) “How do we deliver results” “How do we sustain results”

• Value creation initiatives
• Operational excellence
• 6 Winning Mindsets
• Organisational Practices

TRANSFORMATION OFFICE

Disciplined execution and rigour across APEX

PERFORMANCE HEALTH & CULTURE

Upstream – Driving Operational Excellence

28

ELEVATING YIELD PERFORMANCE

• High yielding

planting material

(e.g. Genome, Dami)

B

SUPERIOR PLANTING MATERIAL

• Effective water

management & conservation practices

C

WATER MANAGEMENT

• Enhancing

automation and digitisation

• Advanced milling

and latest extraction technologies

D

PLANTATION OF THE FUTURE

• Group: 4 - 5%

A

ACCELERATED REPLANTING

• 100
• 268
• 420
• 281
• 311
• 208
• 181

48

Upstream – Replanting with High Yielding Materials

29

Replanting Rate

4 - 5%

Genome Select can deliver up to 15% oil yield improvement as compared to our current commercial offering, Calix 600

NEW PLANTING MATERIALS

High Yielding Materials Average Age 12 years by 2023

Net Impact of Replanting on PBIT (RM’mn) Financial Year Oil Palm Replanting (‘000 ha) Total Area Coming into Maturity1 (‘000 ha)

309,028 ha

BY 2023

230,711 ha

BY 2023

POSITIVE RETURNS

2017 ONWARDS

• GENOME SELECT
• SUPER FAMILY DAMI

11 MT/ha 9 MT/ha

ACCELERATED REPLANTING

A

SUPERIOR PLANTING MATERIAL

B

10.8 8.8 12.3 15.5 20.9 20.6 29.0 27.5 31.2 27.8 26.3 24.9 26.1 27.3 10.8 19.6 31.9 47.4 68.3 88.9 117.9 145.4 176.6 204.4 230.7 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

30

Upstream – Innovative Watering Initiatives

WATER MANAGEMENT

C MALAYSIA INDONESIA LIBERIA PAPUA NEW GUINEA & SOLOMON ISLAND

• Installing mobile pumping equipment at our plantations
• Building perm a

nent w a ter pumpswit hengine s a t river s a nd w a ter bodie sat some of our plantations

• Irrig a

tion sys tem for drier, inl a nd s

• il s a

nd w a ter m a n a gement for coastal areas and areas with high water table

Innovative and cost effective irrigation techniques to ensure that

• ur estates and mills maintain adequate and consistent water

supply during prolonged dry months

31

Upstream – Moving towards a connected, integrated, automated and sustainable plantation

PLANTATION OF THE FUTURE

D

STRATEGIC INNOVATION

Drive innovation culture to monetise internal & external ideas for value creation

DIGITALISATION & INDUSTRY 4.0

Digitally-enabled value chain analytics to be highly efficient, cost effective and sustainable

Normalised Vegetation Index (NDVI)

On-demand aerial analysis (non-exhaustive examples)

Tree Count Census Aerial Monitoring Hotspot Monitoring Dashboard UAV: Unmanned aerial vehicle Value chain analytics Drone Monitoring SD2 System: Two-tier bin system with mechanical buffalo Loose Fruit Collector Powered Exoskeleton

32

Replanting with Superior Planting Materials Cost Management

Progress To-date Strategic Priorities Initiatives To Improve Operational Efficiencies

Water Management

10,617 ha irrigated* 1,157 ha irrigated* 3,584 ha irrigated* 873 ha irrigated*

FFB Production OER +2% YoY* +0.6% YoY*

• SD Premium
• Genome Select
• Super Family Dami
• Labour rationalisation
• Fertiliser cost

reduction via precise application

Cost to Customer

• 6%

YoY*

Note: * For the three months ended 30 September 2018

Improving Operational Efficiencies

Our strategic initiatives are yielding positive results

Downstream – To Become The Preferred Sustainable Palm Oil & Fats Specialist & Customer Solutions Provider

33

• Create value by marketing and

strengthening the “Sime Darby” brand

Through achieving sustainability, quality and food safety requirements

• Explore & expand opportunities to increase
• ur presence in key geographical markets

Such as India, Southeast Asia, the United States, Europe, Africa, the Middle East and China

• Focus on differentiated, sustainable and

traceable high value products

HOW DO WE DELIVER VALUE ?

Downstream – Shifting Into High Margin Specialty Products & Deriving Full Value from CSPO

34

Emphasis on Physical CSPO Sales PQ Oil as the Gateway to Niche and High Value Food Segments Differentiated : Commodity Supply Chain Optimisation to Maximise Value

• f CSPO

Physical Sales vs. Green Certificate

Drive production of differentiated products Drive physical sales vs Green certificates

Commodity vs. Differentiated

Functional RM1,800/MT Infant formula RM700/MT Frying RM300/MT Dairy fat replacer RM200/MT

1) Industry Average Contribution Margin: 2) SD Nutrition Leveraging on Waste to Wealth 2) Working Towards Fully Segregated & Traceable Refineries

Nuri Refinery SD Unimills New Britain Oils

1) Aggregation & Growth Partnership Model

(collaboration with smallholders)

46% 86% 88% 84% 54% 14% 12% 16% FY14/15 FY15/16 FY16/17 FY17/18

Physical Certificate

48% 42% 36% 33% 52% 58% 64% 67% FY17/18 FY16/17 FY15/16 FY14/15

Differentiated Commodity

A B C D

Industry Outlook

Demand Drivers of the Global Oil Palm Plantation and Edible Oils Industry

36

Competitive Pricing

• f Palm Oil and

Price Affordability

• f Edible Palm Oil

Increased consumer awareness on food sustainability Wide Range of Uses for Palm Oil, Palm Kernel Oil and their Related Products Growing Demand for Food due to Increase in Population Increased in Biodiesel Demand CSPO sales grew at a CAGR of

25.2%

between 2010 and 2017, driven by a direct consequence of the sustainability commitments of FMCG companies By 2020, CSPO sales is estimated to reach c.

11.0 mm MT

To increase by

60%

By 2050 to meet

increase in energy intake demand (from 2005 – 2007) Average daily energy supply expected to increase by 11% during the same period

Type of Oil Price (USD/MT) in 2017

Palm Oil 689 – 735

Soybean Oil 716 – 846 Coconut Oil 1,603 Palm Kernel Oil 1,278 Corn Oil 825 – 943 Rapeseed Oil 870 Groundnut Oil 1,484

The physical and chemical characteristics

• f oil palm products and

their derivatives allow them to be applied in a wide variety of both

food and non-food end-user industries Lower oil reserves and increased in oil extraction cost has

driven the global demand for palm oil for the production of biodiesel By 2052, it is estimated that oil reserves may no longer be able to support the global economy Source: Oil World 2017/2018

Global Vegetable Oil Demand & Supply

37

51.9 45.4 25.3 25.1 16.4 10.9 51.6 47.6 26.0 26.3 16.7 11.1 51.2 48.5 26.6 26.8 16.9 11.1

EU-28 US China Latin America India Africa

Vegetable Oil Demand per Capita (kg)

2016/17 2017/18 2018/19 106 136 173 189 199 214 241 270 111 141 180 190 198 214 242 272 6.5 7.0 7.4 7.6 7.6 7.8 8.2 8.6

0.0 2.0 4.0 6.0 8.0 10.0 50 100 150 200 250 300 350 2005 2010 2015 2017 2018 2020 2025 2030

bn mn MT

Vegetable Oil Demand & Supply vs Population

Demand Supply Population (RHS)

Source: LMC Oilseeds & Oils Report 2018, United Nations, USDA

Demand/Capita (kg) 16.2 19.6 31.5 27.5 25.1 23.4 29.5 26.0 13.4 4.2 3.4 4.1 7.1 6.1 12.9 4.8 3.6 4.3 6.9 6.2 12.6 4.3 3.9 4.3 7.8 6.2

EU-28 US China Latin America India Africa

Palm Oil Demand per Capita (kg)

2016/17 2017/18 2018/19

Population Growth is a Key Driver

Huge Potential for the Palm Oil Industry

38

260 584 290 310 901 667 590 601 614 682 755 1970 1980 1990 2000 2010 2017 2018 2019 2020 2025 2030

CPO Price (1970 - 2030)

Source: LMC Oilseeds & Oils 2018, World Bank October 2018, Bloomberg

Notes: 1) World Bank palm oil price from 1970-2014 - 5% bulk, c.i.f. North West Europe; from 2015 onwards - Palm oil (Malaysia), f.o.b. spot 2) Actual historical exchange rates used for conversion of prices from 1970-2017; constant rate of USD1:RM4.00 used for 2018-2030.

788 1,270 784 1,179 2,900 2,869 2,362 2,405 2,457 2,727 3,019

RM/MT

USD/MT 2.7 14.4 23.7 29.6 33.6 38.9 39.8 41.8 0.5 0.8 1.0 1.1 1.2 1.3 1.7 2.1 2005 2010 2015 2017 2018 2020 2025 2030

Vegetable Oil Consumption in Biofuels (mn MT)

Biodiesel Direct Burning

3.2 4.5 5.7 6.0 6.3 6.4 7.5 8.9 3.6 4.2 4.7 5.2 5.4 5.9 7.6 9.6 2005 2010 2015 2017 2018 2020 2025 2030

Vegetable Oil Consumption in Oleochemicals (mn MT)

Lauric Oils Palm Products

Longer Term CPO Price Forecasts

39

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

MPOB Palm Oil Prices

MPOB Daily Price World Bank Forecast

Source: World Bank October 2018, Bloomberg

5-Year Average Prices (MPOB) Average World Bank Prices for 2018-2030: RM2,592/MT

Notes: 1) Historical MPOB prices sourced from Bloomberg 2) Forecast prices sourced from World Bank 3) Exchange rate of USD1:RM4.00 applies for World Bank CPO price forecasts between 2018 - 2030

CAGR (‘92 – ’95): 17.00% CAGR (‘96 – ’00):

• 4.35%

CAGR (‘01 – ’05): 11.43% CAGR (‘06 – ’10): 16.08% CAGR (‘11 – ’15):

• 9.84%

CAGR (1992 – 2017): 4.55% World Bank CAGR (2018 – 2030): 2.07% Average Price 2018-2030: RM2,592/MT

1,382 2,373 2,619 1,484 1,143 2,582 2,617

5-Year Average Prices (World Bank)

2030: RM3,019/MT 2018: RM2,362/MT

RM/MT

40 Source : MPOB, Reuters, Oil World, RHB

• Demand for palm oil could also be driven by:

 Increasing demand from China (+5% YoY to 5.7 mil MT for 18/19F)  Higher demand from India (+7% YoY to 9.3 mil MT for 18/19F) - due to reduction in import duties  Biodiesel:

• Malaysia’s implementation of B10 from 1

Dec’18, possibly B20 by 2020

• Indonesia’s implementation of B20 for

non-PSO from 1 Sep’18, and B30 for the transport sector (PSO) in 2019

• With full implementation - CPO

demand could increase by 3-4 mil MT/annum  El Niño  Upcoming festive seasons

0.0 1.0 2.0 3.0 4.0 5.0

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18

CPO production may continue its downtrend due to seasonal cycle

Msia Inv Indo Inv Msia Prod Indo Prod 50 100 150 200 250 100 200 300 400 500 600 700 800 900 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18

Soybean Oil Premium (USD/MT) Price (USD/MT)

Escalating soy oil to palm oil premium

SBO-CPO Premium (RHS) Soybean Oil Price CPO Price Correlation = +0.84

*PSO: Public Service Obligation

Short-Term Industry Outlook

Revision of export levy in Indonesia – Potential Impact

41

Positive for Indonesian upstream players at current low CPO price

• More export of CPO may narrow Indonesia’s CPO price discount to

Malaysia.

Source: CIMB, Downstream

Products Current Structure Revision to Export Levy – CPO Price <USD570/mt USD570/mt to USD619/mt >USD619/mt Crude palm oil 50 25 50 RBD palm olein & others 30 15 30 RBD palm oil & others 20 10 20

Indonesia’s new palm oil export levy structure Less of an advantage for Indonesian downstream processors

• The revised levy (for CPO price <USD570/mt) may erode the margin

advantage for downstream players.

• However, this may be partly mitigated by higher CPO volume

processed.

1 2

Implications on Sime Darby Plantation

• Currently, local CPO prices in Indonesia are gradually picking up but eventually, the global demand for CPO will

navigate the future CPO prices.

• Sime Darby Plantation’s Downstream unit will continue to drive sales for both local and export markets through its

bulk and differentiated products strategies.

Financial Overview

Revenue and PBIT

FY2018 Breakdown

43

Upstream 26% Downstream 73% Others 1%

FY18 Revenue by Segment

Increase was primarily due to the increase in sales of our refined edible oils and fats (downstream

• perations), sugar and

beef (upstream

• perations), mainly as

a result of the full year consolidation of NBPOL Group’s financial result.

10,304.0 11,946.5 14,779.4 14,369.0 FY2015 FY2016 FY2017 FY2018

RM’mn Increase was primarily due to the increase in the sales of our palm

• il products (i.e.
• ur upstream
• perations) and
• ur refined edible
• ils and fats (i.e.
• ur downstream
• perations).

Revenue FY18 Revenue by Geography FY18 PBIT by Segment

Upstream 83%

Downstream 13% Others 4% Malaysia 23% Europe 22% India 19% Other SEA 11% Indonesia 7% Other Countries 7% South Africa 5% China 3% PNG & SI 3% Liberia 0.2%

Upstream 94%

Downstream 11% Others 5%

TOTAL PBIT RECURRING PBIT

Lower revenue was due to lower average CPO and PK prices realised mitigated by the higher FFB production

1,031.4 1,002.9 3,551.9 1,885.4 10.0% 8.4% 24.0% 13.1% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 2000 4000 6000 8000 10000 FY2015 FY2016 FY2017 FY2018

Expenses, Operating Profit & PAT

FY2015 – FY2018

44

9,185.3 11,130.9 12,991.0 12,741.0 FY2015 FY2016 FY2017 FY2018

Increase principally reflects the increase in the production of refined edible oils and fats at our downstream operations where the purchase of edible oil and consumables for such production was higher, coupled with higher plantation operating costs and depreciation and amortisation from our upstream operations. RM’mn RM’mn Increase is mainly due to increased expenses from our upstream operations as well as an increase in edibles and consumables expenses from our downstream

• perations

Increase due to the higher revenue and gain from the sale of the parcel of lands to KSDB The lower overall operating profit margin is a result of lower FFB

• yield. However, this was partially
• ffset by the improvement of the
• perating profit margin in our

downstream operations. RM’mn

Operating Expenses Operating Profit & Operating Profit Margin PAT & PAT Margin

1,570.9 1,268.0 4,537.9 2,572.8 15.2% 10.6% 30.7% 17.9% 0.00% 10.00% 20.00% 30.00% 1000 6000 11000 FY2015 FY2016 FY2017 FY2018

Lower production costs from Upstream

• perations

Key Financial Metrics

FY2015 – FY2018

45 Note: FY17’s PBIT and PATAMI excluded the gain from the divestment of land to Kumpulan Sime Darby Berhad

12.85 14.37 14.78 11.95 10.30 4-year average FY18 FY17 FY16 FY15

Revenue (RM'bn)

7 9 8 4 7 4-year average FY18 FY17 FY16 FY15

ROIC %

2,447 2,536 4,455 1,259 1,538 4-year average FY18 FY17 FY16 FY15

PBIT (RM'mn)

1,800 1,727 3,507 967 997 4-year average FY18 FY17 FY16 FY15

PATAMI (RM'mn)

Snapshot of Capital and Debt

46 Note: (1) Based on Total Borrowings (including intercompany loans) divided by Total Equity 1.37 1.29 0.61 0.55 0.44 0.39 0.40 0.43

As at 30 Jun 2015 As at 30 Jun 2016 As at 30 Jun 2017 As at 30 Sep 2017 As at 31 Dec 2017 As at 31 Mar 2018 As at 30 Jun 2018 As at 30 Sep 2018

Days RM’mn (x) (x)

Working Capital Turnover Period Indebtedness by Maturity (as at 30 Jun 2018) Current Ratio Gross Gearing Ratio (1)

0.5 1.3 1.1 1.2 1.5 1.6 1.6 1.3

As at 30 Jun 2015 As at 30 Jun 2016 As at 30 Jun 2017 As at 30 Sep 2017 As at 31 Dec 2017 As at 31 Mar 2018 As at 30 Jun 2018 As at 30 Sep 2018

1,094.2 3,506.7 1,409.7 0.5 Within 1 year 1-2 years 2-5 years More than 5 years 52 44 38 40 78 85 71 75 46 39 34 35 As at 30 Jun 2015 As at 30 Jun 2016 As at 30 Jun 2017 As at 30 Jun 2018 Receivables Inventory Payables

Credit Ratings

47

AAA , Stable

Affirmed on 14 Sep’18

BBB+, Stable

Affirmed on 15 Nov’18

Baa1, Stable

Affirmed on 18 Oct’18 “The affirmed corporate credit rating is driven by SD Plantation’s sizeable and geographically diversified oil palm plantations that support a strong cash flow generating ability to provide a healthy buffer against its financial

• bligations”

“SD Plantation's rating reflects its position as the world's largest palm-

• il

producer by planted area, diversified plantation locations and

• perating integration, which allows
• ptimum profit retention”

“Malaysian oil palm planters, particularly companies which comply with tighter sustainability standards of the RSPO, will have better support in their credit

• ratings. Among Moody’s rated oil palm

planter issuers, SD Plantation is best positioned for sustainable practices as it is the largest producer globally

• f

certified sustainable palm oil”

Rating agencies affirmed SD Plantation’s credit ratings – A testament to its financial stability

Dividend Policy

48

The declaration of interim and final dividends is subject to the discretion of our Board. However, our ability to pay dividends or make other distributions to our shareholders will depend upon a number of factors, including:

• the level of our cash, gearing, return on equity and retained earnings;
• our expected financial performance;
• our projected levels of capital expenditure and other investment plans;
• our working capital requirements; and
• our existing and future debt obligations.

No inference should be made from any of the foregoing statements as to our actual future profitability or our ability to pay dividends in the future. We propose to pay dividends out of cash generated from our operations after setting aside necessary funding for capital expenditure and working capital requirements. As part of this policy, our Company targets a dividend payout ratio of not less than 50.0% of our consolidated profit attributable to the owners of our Company under MFRS, beginning 1 July 2017

Appendix

50

Financial Highlights

Lower profit attributable to weaker average CPO & PK prices realised, mitigated by improvements in operational efficiencies

115 15.0 1.7

in RM’mn (YoY %)

30 SEP 2018 30 SEP 2017

1 Non-recurring refers to the gain on sale of land to SD Property of RM677mn and reversal of accrual for donation of RM95mn in the three months ended 30 September 2017 2 Based on weighted average number of ordinary shares post-listing of SD Plantation

259 115

3,039 3,541 259 1,284

512 772

212 1,239 1,019

270 749

Revenue PBIT PBT

Recurring PBIT Non-Recurring PBIT1 Recurring PATAMI Non-Recurring PATAMI1

PATAMI

Attributable to owners of the Company

Basic EPS

2

(RM’sen)

1.7 4.0 11.0

Recurring EPS Non-Recurring EPS

• 89%

YoY %

• 14%
• 80%
• 49%
• 83%
• 89%
• 57%
• 58%

51

Financial Highlights

Impact of lower average CPO and PK prices realised on our profit

MALAYSIA INDONESIA PNG/SI

2,223

in RM’mn

• 19%

2,730 1,767

• 18%

2,162 CPO* PK* 1,803

• 32%

2,635 1,337

• 30%

1,901 CPO* PK* 2,289

• 15%

2,690 CPO*

Note: * Average selling price realised (in RM/MT palm product)

132 100 25 19 101 76 12 9 30 21

IMPACT ON PBIT IMPACT ON PATAMI

30 SEP 2018 30 SEP 2017 YoY % 259 115 512 270

Recurring PBIT Recurring PATAMI

• 49%
• 57%

300 225

THE IMPACT OF LOWER AVERAGE CPO & PK PRICES REALISED

253 155

52

Borrowings & Cash Flow

Higher borrowings largely due to the acquisition of the Markham Farming Company Limited (MFCL) for a total cash consideration of ~USD52.6mn (~RM215.6mn), higher working capital funding and foreign exchange movement

1 Gross Gearing is based on Total Borrowings (including intercompany loans) divided by Total Equity 2 Net Gearing is based on Total Borrowings (including intercompany loans) less Bank Balances, Deposits & Cash divided by Total Equity

Gearing as at 30Sep 201 8 increased by RM 670 mn or 10% compared to 30 June 2018 due to:

• New

loan drawdown for the acquisition

• f MFCL
• Working capital funding, given higher inventory

balances (30 Sep 2018: RM2.0bn vs 30 Jun 2018: RM1.6bn)

• Foreign exchange movement of RM163mn

Less: Loan repayments

RM391mn

NET CASH GENERATED FROM OPERATING ACTIVITIES

30 Sep 2017: RM541mn (-28% YoY)

• RM681mn

NET CASH USED IN INVESTING ACTIVITIES

30 Sep 2017: -RM306mn (>+100% YoY)

As at 30 Sep 2017 As at 31 Dec 2017 As at 31 Mar 2018 As at 30 Jun 2018 As at 30 Sep 2018 Long Term Debt Short Term Debt

44%

7,214

55%

8,815

39%

6,452

Gross Gearing1 Borrowings (in RM’mn)

39% 48% 35%

Net Gearing2

40%

6,489

38% 43%

7,159

40%

69% 19% 12% 80% 20% 82% 18% 83% 17% 77% 23% RM381mn

NET CASH FROM FINANCING ACTIVITIES

30 Sep 2017: RM281mn (+36% YoY)

Internal inventory volume (in MT) 30 Sep 2018 30 Jun 2018 QoQ % Upstream – CPO 204,947 77,141 +166% Upstream – PK 36,750 21,161 +74% Downstream – Refined products 277,454 204,991 +35% Total 519,151 303,293 +71%

Financial Performance by Segment

Lower profit contributions arising from lower average CPO and PK prices realised, mitigated by higher FFB production and improved OER

53

Recurring PBIT in RM’mn (YoY %)

1 Others refers to Sime Darby Agri-Bio Sdn Bhd, Sime Darby Research Sdn Bhd, Sime Darby Technology Sdn Bhd, Sime Darby Biotech Lab Sdn Bhd, Sime Darby Seeds Sdn Bhd, as

well as investment holding companies, associates and joint ventures

200 436 11 6 48 70

125 63 30

• 18

304 117 38

• 23

Upstream

Upstream Malaysia

Downstream Others

1

Upstream Indonesia Upstream PNG/SI Upstream Liberia

YoY %

• 54%

30 SEP 2018 30 SEP 2017

• 31%
• 59%
• 46%

+83%

• 21%

+22%

Operational Performance – Upstream

Improved FFB production from all regions except the Malaysian operations

54

• Malaysia: Weaker FFB
• utput on the back of a

lower production cycle as compared to the bumper harvest experienced last year

• Indonesia: Higher

production due to our progressive replanting efforts in the previous years showing positive yields

• PNG/SI: Favourable

weather conditions boosted FFB production

• Liberia: Better production

growth as more trees come into maturity

FFB PRODUCTION

TOTAL UPSTREAM MALAYSIA

in ‘000 MT (YoY %)

INDONESIA PNG/SI LIBERIA +86%

30 Sep 2017 30 Sep 2018

2,696 2,751

+2%

30 Sep 2017 30 Sep 2018

1,553 1,293

• 17%

30 Sep 2017 30 Sep 2018

725 919

+27%

30 Sep 2017 30 Sep 2018

404 513

+27%

30 Sep 2017 30 Sep 2018

14 26

Operational Performance – Upstream

Overall improvement in OER attributable to the Malaysian operations

55

• Malaysia: OER

improved as a result

• f our continuous

crop quality improvement

• Indonesia: Weaker

OER due to an increase in newly matured areas with lower oil to bunch ratio

• PNG/SI and Liberia:

Attributable to crop quality being affected by the longer harvesting intervals as a result

• f the increase in

crop production

CPO EXTRACTION RATE (OER)

TOTAL UPSTREAM MALAYSIA INDONESIA PNG/SI LIBERIA +0.6%

30 Sep 2017 30 Sep 2018

21.33 21.04

30 Sep 2017 30 Sep 2018

22.69 22.11

+2%

• 1%

30 Sep 2017 30 Sep 2018

20.61 19.44

• 3%
• 6%

in % (YoY %)

30 Sep 2017 30 Sep 2018

21.06 20.93

30 Sep 2017 30 Sep 2018

20.66 20.21

Operational Performance – Upstream

CPO prices remain subdued in view of the challenging business environment

56

CPO prices weakened during the period largely due to:

• The increase in

inventory caused by a seasonal high in production coupled with sluggish export demand

AVERAGE CPO PRICE REALISED

TOTAL UPSTREAM MALAYSIA INDONESIA PNG/SI LIBERIA

• 14%
• 19%
• 32%
• 15%

30 Sep 2017 30 Sep 2018

2,693 2,117

30 Sep 2017 30 Sep 2018

2,730 2,223

• 21%

30 Sep 2017 30 Sep 2018

2,635 1,803

30 Sep 2017 30 Sep 2018

2,690 2,289

30 Sep 2017 30 Sep 2018

2,220 1,918

in RM/MT (YoY %)

Financial Performance – Downstream

Weaker contributions from the differentiated products business mitigated by improved performance of the bulk products business

57

Recurring PBIT in RM’mn (YoY %)

• 31%

The weaker performance was mainly attributable to the differentiated products business due to lower sales volume and margins in view of:

• Greater competitive

environment

• Lower seasonal demand

The decline in earnings was partially mitigated by improved performance from the bulk products business due to:

• Better

margins for palm products in Indonesia amid high inventory levels in the country

TOTAL DOWNSTREAM

• 81%

DIFFERENTIATED +10% BULK

• 27%

TRADING

30 Sep 2017 30 Sep 2018

70 48

30 Sep 2017 30 Sep 2018

26 5

30 Sep 2017 30 Sep 2018

29 32

30 Sep 2017 30 Sep 2018

15 11

Operational Performance – Downstream

Improved capacity utilisation and sales volume largely driven by the bulk products business

58

30 Sep 2017 30 Sep 2018

836 891

CAPACITY UTILISATION

• Higher bulk products as at 30 Sep 2018 due to increased demand

from Indonesia

SALES VOLUME +7%

• Sales volume was 7% higher compared to the previous

corresponding period attributable to the bulk products business

• Capacity utilisation increased from 74% to 75% as at 30 Sep 2018

in ‘000 MT (YoY %) 30 Sep 2017 30 Sep 2018

46 43 54 57

Differentiated Bulk

PRODUCT RATIO

30 Sep 2017 30 Sep 2018

74 75

in % in %

59

Summary of Operational Statistics

As at 30 September 2018

Oil Palm Age Profile

As at 30 September 2018

60

THANK YOU

SIME DARBY PLANTATION INVESTOR RELATIONS

investor.relations@simedarbyplantation.com +(603) 7848 4000 http://www.simedarbyplantation.com/investor-relations