SIME DARBY PLANTATION BERHAD CGS-CIMB 12th Annual Malaysia Corporate - - PowerPoint PPT Presentation

CGS-CIMB 12th Annual Malaysia Corporate Day 2020

SIME DARBY PLANTATION BERHAD

7 January 2020

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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 Plantation 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 Plantation 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 Parties 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 Plantation 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.

S E C T I O N PA G E 1 Company Overview 4 2 Key Investment Highlights 9 3 Business Strategies & Future Plans 26 4 Industry Outlook 37 5 Financial Overview 42 6 Financial Performance in Q3 FY2019 51 7 Appendix 66

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) Biodiesel products & derivatives, and

• leochemicals*

▪ Production and sales of biodiesel products and derivatives, as well as

• leochemicals*

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 Hectarage as at 31 December 2018 Rubber 14,725 ha of rubber estates Cattle 9,560 ha of grazing pasture Sugarcane 5,613 ha of planted area

Note: * The oleochemicals business has been classified as a discontinuing operation

Snapshot of Oil Palm Plantation Operational Statistics

6

As at 31 December 2018 unless otherwise stated

Malaysia Indonesia Liberia# PNG & SI Total

Total oil palm planted area(ha)

304,731 201,072 10,263 91,080 607,146

Mature area (ha)

248,964 158,791 9,975 79,125 496,855

Palm tree age profile & average tree age (Years) FFB production* (mn MT/year)

5.373 2.892 0.086 1.980 10.331

CPO production* (Total) (mn MT/year)

1.332 0.787 0.020 0.571 2.710

PK production* (Total) (mn MT/year)

0.335 0.178 0.005 0.148 0.665

FFB yield* (MT/ha)

21.9 18.1 8.7 25.1 20.9

OER* (%)

20.8 21.1 21.1 22.4 21.2

KER* (%)

5.2 4.8 5.5 5.8 5.2

Average CPO selling price* (RM/MT)

2,262 1,920 1,989 2,412 2,184

Average PK selling price* (RM/MT)

1,780 1,376 481

• 1,678

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

11.8 yrs 13.6 yrs

13% 24% 45% 13% 5%

5.4 yrs 11.8 yrs

18% 21% 30% 22% 9%

12.3 yrs

Note: * For the January – December 2018 period

# The Liberian operations have been classified as a discontinuing operation

18% 22% 35% 16% 9% 21% 13% 17% 38% 11% 3% 97%

Snapshot of Downstream Operations

7

Differentiated Food Bulk Processing

Legend:

* Excluding Industrial Enterprises (IE) Soya in Thailand Note: ▪ Figures as at 31 December 2018 ▪ Names of refineries in brackets refers to the respective proposed new names

11

Refineries

3.8 million MT

Refining Capacity

75%*

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, health Non-food products produced by the Group’s biodiesel, oleochemicals and nutrition plants

Downstream – Forging the Pathway to Global Consumers to Establish Lasting Relationships

8

Region Refinery Ingredient Customer End Product

Malaysia Europe South Africa Vema 37 Malaysia Europe Refined Palm Oil

Premium Quality Olein Palm Olein Refined Palm Oil Refined Palm Oil

SD Oils Langat Refinery SD Oils Zwijndrecht Refinery B.V SD Oils South Africa Pty Limited SD Oils Biodiesel Sdn Bhd SD Oils Liverpool Refinery Limited

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

Jan - Dec 2018 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% 46%

As at 30 Jun 2017 As at 31 Dec 2018

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

12

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

2

Note: Figures as at 31 December 2018 unless stated otherwise

1 Estimated based on global planted area of 21.5 mn ha worldwide 2 For the January – December 2018 period 3 Based on global CPO production of 70.46 mn MT in 2017/2018

We are the world’s largest oil palm plantation company by oil palm planted area with total landbank of more than 997,000 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)

3.8 mn MT p.a.

Total Refining Capacity (11 Refineries)

Market Leading R&D

Edison Award 2017 under the Energy and Sustainability category

(Genome Select Oil Palm Project)

250

Estates

71

Mills

11

Crushing Plants

(inclusive of soy crushing plant)

2.71 mn MT

2

Jan-Dec 2018 Total CPO Production (~4% of Global Market Share3)

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 Sustainable Palm 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

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)

100%

INDONESIA

100%

PNG & SI

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

100%

MSPO-certified

100%

ISPO-certified

A s a t 3 0 S e p t e m b e r 2 0 1 9

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 – Crosscheck

2

Rapid rate of deforestation is an URGENT challenge for the world.

The palm oil industry is one of the contributors to this problem.

SD Plantation has a long track record in responsible production of palm oil.

We need to step up to this challenge and take action. We believe that traceability is

the next frontier in halting

deforestation: tracking supply back to its source will make it possible to identify where problems exist – and to take action. We created ‘CROSSCHECK’ as a tool for ANYONE to

trace our supply to the mill level and check whether palm oil is

being sourced from high risk areas.

‘CROSSCHECK’

Launched on 23 May 2019

http://crosscheck.simedarbyplantation.com/

16

Proactively managing risks and grievances within our global supply chain…

Sustainability – Supply Chain Sustainability

2

OpenPalm - 2016 Our global supply chain is currently 97% traceable to the mill Identify and manage risks throughout our supply chain… … and effectively respond to grievances of our supply chain

OpenPalm Global Mill List of all our refineries publicly available Supply Chain Risk Assessment Supplier Grievances and our actions taken publicly available Satellite monitoring from stakeholder reports

17

Going beyond our boundaries to uplift the practices and livelihoods of our suppliers, communities and the industry

Sustainability – Supply Chain Sustainability

2

• Our outgrowers’: ~40,000 ha of area,

supporting ~25,000 families

• Decent Rural Living Initiative
• Community Fire Prevention program
• 100% RSPO certification: 16,000 smallholder blocks
• SAN Standard by Rainforest Alliance
• Responsible Sourcing Guidelines
• MSPO certification
• Entire Sabah state RSPO certified by 2025
• Nestle and ELEVATE to develop an independent 3rd party

grievance hotline

Examples of some of our efforts within the region

18 Source: Company

Sustainability – Driving Market Demand

2

13.9mn MT

Global CSPO Production Capacity (as of January 2019)

▪ 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

Partnership with Conservation International (CI)

19

SD Plantation’s sustainability agenda remains at the forefront of the company’s operations

Sustainability

2

Sustainable Business Awards (SBA) Malaysia 2019

SD PLANTATION WINS 3 AWARDS AT SBA MALAYSIA 2019

The SBA, open to companies of all sizes and currently covering 6 countries in Asia, recognises companies for their

• utstanding performance on environmental and social

sustainability

▪ Best Supply Chain Management ▪ Best Land And Biodiversity Management ▪ Special Recognition For United Nation’s Sustainable Development Goals

SD Plantation Works With Partners To Strengthen Its Commitment Towards A Sustainable Supply Chain 1

▪ The partnership is to further instill sustainability into the core of our operations and supply chain ▪ First phase of the collaboration will be an independent review by CI, followed by their suggestions to strengthen SD Plantation’s sustainability practices and culture based on the findings ▪ The collaboration will help create a pathway for other players to follow, in hopes of leading to a sustainable transformation of not just the palm oil industry but also the entire agricultural sector

Radar Alerts for Detecting Deforestation (RADD) 2

▪ Collaboration with 9 other major palm oil producers and buyers to support and fund the development

• f

a new, publicly available radar-based forest monitoring system ▪ The partnership will make it much easier for companies and stakeholders to spot deforestation activities in near-real-time and with greater accuracy to mobilise support on the ground

20

Reinforcing our commitment to achieve a sustainable supply chain

Sustainability

2

‘Working With Suppliers To Draw The Line On Deforestation’ Policy

The policy builds on SDP’s existing practice and maps a step forward to meet the No Deforestation, No Peat, No Exploitation (NDPE) standards as well as SD Plantation’s expectation that suppliers adhere to those same standards

SD Plantation has successfully maintained its position as a constituent of the FTSE4Good Bursa Malaysia Index and FTSE4Good Emerging Index as at June 2019

Based on the policy, if a supplier is found to be in violation of our NDPE standards: The supplier would have to immediately cease work on the land The supplier must also develop two types of plan: a time-bound plan for the restoration of cleared land, and a time-bound plan to upgrade their operational practice If that supplier is unwilling to meet these conditions, they will be suspended

For more information: Sime Darby Plantation's Policy for Working With Suppliers

The FTSE4Good Index Series acknowledges companies that demonstrate strong ESG practices measured against globally recognised standards

21

Upstream Operations

▪ Presence in 5 countries ▪ Developing, cultivating and managing oil palm, rubber & sugarcane plantation estates ▪ Operates and manages 250 plantation estates and 71 palm oil mills ▪ Cattle rearing & beef production

Downstream Operations

▪ Mainly operating across 7 countries ▪ Production & sales of bulk & refined oils and fats, biodiesel products and derivatives, and oleochemicals* ▪ Manages and operates 11 refineries with a total refinery capacity of 4 mn MT per year

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

Note: * The Liberian operations and the oleochemicals business have been classified as discontinuing operations Source: Frost & Sullivan, company

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

3

MALAYSIA INDONESIA LIBERIA* PAPUA NEW GUINEA SOLOMON ISLANDS MALAYSIA INDONESIA THAILAND PAPUA NEW GUINEA UNITED KINGDOM NETHERLANDS SOUTH AFRICA

22

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

Given 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 85% of global CPO production. SDP 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

23

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

1 2 Key Benefits of a Fully Integrated Business Model

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

24

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

25

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 Datuk Dr. Yusof Basiran Independent Non- Executive Director Mohamad Helmy Othman Basha Group Managing Director

• Dr. Simon

Lord Chief Sustainability Officer Mohd Haris Mohd Arshad Managing Director, Sime Darby Oils

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’ Mohamad Nasir Ab. Latif Non-Independent Non-Executive Director Muhammad Lutfi Independent Non- Executive Director Zainal Abidin Jamal Non-Independent Non-Executive Director Datuk Zaiton Mohd Hassan Senior 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 Dato’ Mohd Nizam Zainordin Non-Independent Non- Executive Director Dato’ Henry Sackville Barlow Independent Non- Executive Director Aditya Tuli Chief Digital Officer Norzilah Megawati Abdul Rahman Group Secretary Gajani Nayagi Seeveneserajah Chief Risk Officer Nik Maziah Nik Mustapha Chief Integrity and Assurance Officer Mohamad Helmy Othman Basha Group Managing Director

• Dr. Harikrishna

Kulaveerasingam Chief Research & Development Officer Adi Wira

• Abd. Razak

Chief Operations Services Officer

Business Strategies & Future Plans

The Strategy Moving Forward

27

‘The Leading Integrated Global Palm Oil Player’

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

U P S T R EA M

DRIVING OPERATIONAL EXCELLENCE VIA DIGITISATION

D OW N S T R EA M I N T EG 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 Group’s 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

RISE to APEX

Driving performance through culture change

28

Accelerating Performance Excellence Sustaining Performance Excellence Measure: PATAMI Growth Measure: Organisational Health Index (OHI) “How we deliver results” “How we sustain results” ▪ Value creation initiatives ▪ Operational excellence ▪ 6 Winning Mindsets ▪ Organisational Practices

TRANSFORMATION OFFICE

Disciplined execution and rigour across APEX

PERFORMANCE HEALTH & CULTURE

Value Creation

Establishment of Transformation Office to ensure effective execution of strategies

29

▪ 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

30

SDP’s Journey to be the Leading Innovator in the Palm Oil Industry

To protect, sustain and leap the growth of SDP’s value 2019 >2020 EMBEDDING INNOVATION

AWARENESS & PLATFORM

BELIEVE IN INNOVATION

UPSKILL & ENHANCE

ACT WITH INNOVATION

INGRAIN & ENFORCE

2018 LEAD IN INNOVATION

EXEMPLARY ROLE MODEL

2020

Upstream – Driving Operational Excellence

31

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

REPLANTING

32

Upstream – Replanting with High Yielding Materials

REPLANTING

A

SUPERIOR PLANTING MATERIAL

B

GenomeSelect palms in Diamond Jubilee Estate (DJE) Oil palm bunches on 2 year old GenomeSelect palm New GenomeSelect field in DJE planted in 2018

33

Upstream – Innovative Watering Initiatives

WATER MANAGEMENT

C MALAYSIA INDONESIA LIBERIA PAPUA NEW GUINEA & SOLOMON ISLAND

• Installing mobile pumping equipment at our plantations
• Building permanent water pumps with engines at rivers and water bodies at

some of our plantations

• Irrigation system for drier, inland soils and water management 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

34

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

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

35

• Create value by marketing and stronger

branding

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

36

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

Drive production of differentiated products Drive physical sales vs Green certificates

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% 83% 54% 14% 12% 16% 17% FY14/15 FY15/16 FY16/17 FY17/18 Jan-Dec'18

Physical Certificate

45% 48% 42% 36% 33% 55% 52% 58% 64% 67% Jan-Dec'18 FY17/18 FY16/17 FY15/16 FY14/15

Differentiated Bulk

A B C D

Differentiated vs Bulk Physical Sales vs Green Certificate

Industry Outlook

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

38

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

21.9%

between 2010 and 2018, 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 2018

Palm Oil 535 – 709

Soybean Oil 728 – 871 Coconut Oil 787 – 1,394 Palm Kernel Oil 708 – 1,265 Sunflower Oil 703 – 806 Rapeseed Oil 793 – 854 Groundnut Oil 1,433 – 1,477

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: World Bank, RSPO

Global Vegetable Oil Demand & Supply

39

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

Longer Term CPO Price Forecasts

40

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 Jan-27 Jan-28 Jan-29 Jan-30 Jan-31

MPOB Palm Oil Prices

MPOB Daily Price

Source: World Bank April 2019, Bloomberg

5-Year Average Prices (MPOB)

Average World Bank Prices for 2019-2030: RM2,621/MT Notes: 1) Historical MPOB prices sourced from Bloomberg 2) Forecast prices sourced from World Bank (constant price, adjusted for inflation) 3) Exchange rate of USD1:RM4.00 applies for World Bank CPO price forecasts between 2019 - 2030

CAGR (‘92 – ’96): 17.00% CAGR (’97 – ’01):

• 4.35%

CAGR (‘02 – ’06): 11.43% CAGR (‘07 – ’11): 16.08% CAGR (‘12 – ’16):

• 9.84%

CAGR (1992 – 2018): 3.63% World Bank CAGR (2019 – 2030): 2.09% 1,382 2,373 2,619 1,484 1,143 World Bank Forecast 2030: RM3,019/MT 30 Dec 2019: RM3,016/MT RM/MT

Legend:

Average MPOB Prices for 2017-2019: RM2,457/MT

Global Trends & Market Outlook

41

Financial Overview

Upstream 86% Downstream 27% Others

• 13%

Revenue and PBIT

2018 Breakdown

43 Upstream 26% Downstream 73% Others 1%

Jan-Dec 2018 Revenue by Segment

Increase was primarily due to the increase in sales of our refined edible

• ils 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 13,286.0

FY2015 FY2016 FY2017 FY2018 Jan-Dec 2018 RM’mn

Increase was primarily due to the increase in the sales

• f our palm oil

products (i.e. our upstream

• perations) and our

refined edible oils and fats (i.e. our downstream

• perations)

Revenue Jan-Dec 2018 PBIT by Segment TOTAL PBIT RECURRING PBIT

Lower revenue was due to lower average CPO and PK prices realised

Upstream 38% Downstream

• 12%

Others 74%

1,031.4 1,002.9 3,551.9 1,885.4 661.0 10.0% 8.4% 24.0% 13.1% 5.0%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 2000 4000 6000 8000 10000

FY2015 FY2016 FY2017 FY2018 Jan-Dec 2018

Expenses, Operating Profit & PAT

Historical Comparison

44

9,185.3 11,130.9 12,991.0 12,741.0 12,521.0

FY2015 FY2016 FY2017 FY2018 Jan-Dec 2018

Increase principally reflects the increase in the production of refined edible

• ils 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

• perations 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 1,156.0 15.2% 10.6% 30.7% 17.9% 8.7%

0.00% 10.00% 20.00% 30.00% 1000 6000 11000

FY2015 FY2016 FY2017 FY2018 Jan-Dec 2018

Lower production costs from Upstream

• perations

Lower overall

• perating margin

is due to lower CPO and PK realised prices

Key Financial Metrics

45

Historical Comparison

Note: FP Dec 2018 refers to the six-month financial period ended 31 December 2018

13.29 6.54 14.37 14.78 11.95 10.30

Jan-Dec 2018 FP Dec 2018 FY18 FY17 FY16 FY15

Revenue (RM'bn)

4.5 4.3 8.5 7.9 4.4 6.7

Jan-Dec 2018 FP Dec 2018 FY18 FY17 FY16 FY15

ROIC %

1,138 559 2,536 4,455 1,259 1,538

Jan-Dec 2018 FP Dec 2018 FY18 FY17 FY16 FY15

PBIT (RM'mn)

523 244 1,727 3,507 967 997

Jan-Dec 2018 FP Dec 2018 FY18 FY17 FY16 FY15

PATAMI (RM'mn)

1 2 1 2

1 FY17’s PBIT and PATAMI includes the non-cash gain on sale of MVV land to SD Berhad 2 FY18’s PBIT and PATAMI includes the non-cash gain on sale of land to SD Property and reversal of accrual for donation

How our operational improvements affect

• ur PBIT on an annual basis

46

Every movement of … affects

• ur PBIT by

CPO Price RM100 RM250mn FFB Yield 1 MT/ha RM260mn OER 1% RM280mn Cost to Customer

RM100/MT

palm product

RM300mn

Snapshot of Capital and Debt

47

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 0.46

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 31 Dec 2018 Days RM’mn (x) (x)

Working Capital Turnover Period Indebtedness by Maturity (as at 31 Dec 2018) Current Ratio Gross Gearing Ratio1

0.5 1.3 1.1 1.2 1.5 1.6 1.6 1.2

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 31 Dec 2018

1,804.3 3,660.0 1,311.7 520.9 Within 1 year 1-2 years 2-5 years More than 5 years 52 44 38 40 40 78 85 71 75 81 46 39 34 35 34 As at 30 Jun 2015 As at 30 Jun 2016 As at 30 Jun 2017 As at 30 Jun 2018 As at 31 Dec 2018 Receivables Inventory Payables

Historical Comparison

Credit Ratings

48

AAA , Stable

Rated on 16 Dec’19

BBB, Stable

Rated on 1 Oct’19

Baa1, Negative

Rated on 9 Oct’19

Dividend Policy

49

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

Dividend for FP Dec 2018

50

FP Dec 2018 FY2018 Net Per Share (sen) Total Net Dividend (RM’mn) Net Per Share (sen) Total Net Dividend (RM’mn) Final Cash Dividend 1.7 117 11.5 782 Special Dividend

• 6.0

408 Total Dividend 1.7 117 17.5 1,190

SD Plantation declares and maintains a dividend payout ratio of not less than 50% of the consolidated profit attributable to the owners of the Company

Payout ratio

(Based on recurring PATAMI)

~51% ~63%

Financial Performance in Q3 FY2019

Financial Highlights

52

Q3 FY2019 net loss of RM243mn was impacted by losses from its discontinuing

• perations largely from the impairment charge on assets in Liberia of RM256mn

Note: 1 Due to the change in the financial year, the performance of the current third quarter ended 30 September 2019 (Q3 FY2019) is not comparable with the third quarter of the previous financial year ended 30 September 2018, instead the performance is comparable against the quarter ended 30 September 2018 i.e. the corresponding quarter of the previous year (QE September 2018). The nine months ended 30 September 2019 of the financial year ending 31 December 2019 (9M FY2019) is comparable against the nine months ended 30 September 2018 (9ME September 2018).

2 The Group’s Liberian operations and joint ventures in oleochemical and biomass have been classified as discontinuing operations in the current period following the plan to exit the respective operations.

in RM’mn

Q3 FY2019 QE Sep 20181 YoY % 9M FY2019 9ME Sep 20181 YoY % Continuing Operations Revenue 2,821 3,029

• 7%

8,686 9,757

• 11%

PBIT 118 270

• 56%

333 1,000

• 67%

PATAMI 32 126

• 75%

167 556

• 70%

Discontinuing Operations2 PATAMI

• 275
• 11

>-100%

• 309
• 163
• 90%

Total PATAMI

• 243

115

>-100%

• 142

393

>-100%

Basic EPS (RM’sen)

• 3.5

1.7

>-100%

• 2.1

5.8

>-100%

• Continuing Operations

0.5 1.9

• 74%

2.4 8.2

• 71%
• Discontinuing

Operations2

• 4.0
• 0.2

>-100%

• 4.5
• 2.4

+88%

Financial Performance by Segment – Continuing Ops

53

Better performance from Downstream segment partially mitigated the lower contribution from Upstream operations which were largely impacted by weaker CPO & PK realised prices

162 270

• 44
• 35
• 143

368 1,143

Note: * Others (Continuing operations) 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 JVs

in RM’mn

Recurring PBIT in RM’mn

Q3 FY2019 QE Sep 2018

YoY %

9M FY2019 9ME Sep 2018

YoY %

Upstream 76 218

• 65%

135 932

• 86%

Upstream Malaysia 88 125

• 30%

244 621

• 61%

Upstream Indonesia 90 63

+42%

88 166

• 47%

Upstream PNG/SI

• 102

30

>-100%

• 197

145

>-100%

Downstream 68 48

+42%

204 181

+13%

Others* 18 4

>+100%

29 30

• 3%

Recurring PBIT 162 270

• 40%

368 1,143

• 68%

TOTAL PBIT

• 56% YoY
• 67% YoY

270

QE Sep 2018

118

Q3 FY2019

1,000

9ME Sep 2018

333

9M FY2019

Recurring Profits – Continuing Operations

54

Weaker earnings largely due to lower CPO and PK realised prices

48

YoY in RM’mn

Higher OER

Sep 2018 recurring profits

368 196 SEP 2019 RECURRING PROFITS

1,143 702

70

126 PATAMI

• 142

Lower FFB Production

21

162

270 PBIT PATAMI PBIT 3 Months Ended Sep 9 Months Ended Sep

37

• 103

18 87

• 96

51 67

• 68

45 110 82 43 31

71 119 63 56

Lower contribution from Sugar operations

• 81
• 57
• 19
• 28

20

Others*

16 23 17

1,214 821 189 326

Recurring profits before the impact of CPO/PK prices and Sugar operations

Higher Downstream results

• 1

3

• 15
• 13

Lower CPO and PK prices realised

• 765
• 568
• 100
• 136

Q3/9M FY2019 vs QE/9ME Sep 2018

Changes in stocks Cost to Customer

Legend: Positive Impact Negative Impact Note: * Others – mainly consists of results from other operations and lower compensation from government acquisition of land

• 54

Net tax benefit largely from disposal of a subsidiary

• 10
• 8

Lower net interest expense

• 22
• 22

Lower dividend income

Recurring Profits – Continuing Operations

55

Improved earnings largely due to higher contribution from Upstream and Downstream segments

Higher OER

Jun 2019 recurring profits

162 70 SEP 2019 RECURRING PROFITS

11 37

Higher FFB Production Cost to Customer

PATAMI PBIT 3 Months Ended Jun/Sep

40 8 74 30 7 55 40 30

152 33

Higher contribution from Sugar operations

20 14

Others*

17 13

163 70

Recurring profits before the impact of CPO/PK prices and Sugar operations

Higher Downstream results

8 9

Lower CPO and PK prices realised

• 21
• 14

QoQ in RM’mn

Q3 FY2019 vs Q2 FY2019

Changes in stocks

Legend: Positive Impact Negative Impact

Tax benefit on disposal of a subsidiary recorded in the preceding quarter

• 69

Note: * Others – mainly consists of results from other operations

Lower compensation from government acquisition of land

• 35
• 35

Higher net interest expense

• 7

Non-Recurring Profits – Continuing Operations

56

Q3 FY2019 non-recurring losses of RM44mn comprised of the impairment of an asset in Indonesia and a loan in China

in RM’mn

Q3 FY2019 QE Sep 2018 YoY % 9M FY2019 9ME Sep 2018 YoY % Non-Recurring PBIT

• 44
• >-100%
• 35
• 143

+24%

Impairment of assets in Indonesia

• 19
• 19
• 68

Impairment of a loan due from a JV in China

• 25
• 25
• Gain from divestment of a

subsidiary in Indonesia

• 9
• Impairment of a JV and an

investment

• 180

Gain on sale of land in Malaysia

• 119

Impairment of assets in Malaysia

• 14

Non-Recurring PATAMI

• 38
• >-100%
• 29
• 145

+80%

Discontinuing Operations

57

The Group is planning to exit its Liberian operations and joint ventures in biomass and

• leochemical

DISCONTINUING OPERATIONS

Liberian Operations MyBiomass Emery Oleochemicals

RATIONALE

▪ Lack of progress on expansion of planted area due to increasingly stricter social and environmental standards ▪ Lower than expected yields due to extreme dry weather conditions ▪ High cost of operations ▪ Risk of operational disruption caused by outbreak of diseases from time-to- time ▪ Challenges with the local communities ▪ The company targeted to pioneer the production of high value green chemicals in 2013 using palm-based renewable sources such as empty fruit bunches instead of fossil fuels ▪ Amid the decline in fossil fuel prices, the biomass-based-to-green chemicals business is taking a longer time to mature and gain customer acceptance than

• riginally anticipated

▪ Overcapacity situation in oleo basics market lead to stiff competition and declining margins especially in the Asia Pacific region ▪ Challenging market environment – certain specialty products have commoditised over time, thus reducing margins ▪ In order to increase its competitiveness and keep up with market demands, significant and continuous investments will be required to enhance its plants in the Asia Pacific and North America regions

• 256
• 8

Q3 FY2019 / 9M FY2019

Impairment Charges in PBIT (RM’mn)

Borrowings & Gearing Ratios

58

Higher borrowings arising from lower cash generated from operations amid weak CPO & PK prices, as well as the appreciation of foreign currencies

Note: 1 Gross Gearing is based on Total Borrowings divided by Total Equity

2 Net Gearing is based on Total Borrowings less Bank Balances, Deposits & Cash divided by Total Equity

Borrowings as at 30 Sep 2019 increased by RM80mn compared to 30 Jun 2019 mainly attributable to: ▪ Net loans raised totaling RM32mn arising from lower cash generated from operations ▪ Appreciation of USD and EUR against RM by 1% and 3% respectively, resulting in an impact of RM45mn

Gross Gearing1 Borrowings (in RM’mn) Net Gearing2

49%

7,899

46%

• RM853mn

NET CASH USED IN INVESTING ACTIVITIES

• RM292mn

NET CASH USED IN FINANCING ACTIVITIES

RM1,186mn

NET CASH GENERATED FROM OPERATING ACTIVITIES

43%

7,159

40% 46%

7,297

43% 46%

7,472

43% 48%

7,819

46%

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

As at 30 Sep 2018 As at 31 Dec 2018 As at 31 Mar 2019 As at 30 Jun 2019 As at 30 Sep 2019 Borrowings (RM'mn) Capitalised Immature Planting Costs & Capital Work In Progress (RM'mn)

THREE QUARTERS ENDED 30 SEPTEMBER 2019

Operational Performance – Upstream

59

Weaker FFB production in Q3 FY2019 attributable to weather issues in Malaysia, Indonesia and PNG/SI

▪ Malaysia: Lower FFB production attributable to prolonged dry weather which caused delays in the ripening of fruits ▪ Indonesia: Dry weather conditions in the South Kalimantan region resulted in 19% YoY lower production in Q3 FY2019 ▪ PNG/SI: Weaker production on the back

• f heavy rainfall which

interrupted bunch pollination ▪ Liberia: FFB production was 21% higher YoY in Q3 FY2019 due to improving age profile and better control over recovery of FFB

2,470 2,751

Q3 FY2019 QE Sep 2018

• 10% YoY
• 1% YoY

7,422 7,526

9M FY2019 9ME Sep 2018

TOTAL UPSTREAM

from all operations

FFB PRODUCTION

FFB Production in ‘000 MT

Q3 FY2019 QE Sep 2018

YoY %

9M FY2019 9ME Sep 2018

YoY %

Continuing Operations Upstream Malaysia 1,275 1,293

• 1%

3,982 3,868

+3%

Upstream Indonesia 742 919

• 19%

1,935 2,099

• 8%

Upstream PNG/SI 422 513

• 18%

1,432 1,499

• 4%

Total for Continuing Operations 2,439 2,725

• 11%

7,349 7,465

• 2%

Discontinuing Operation Upstream Liberia 31 26

+21%

73 61

+20%

Total for all

• perations

2,470 2,751

• 10%

7,422 7,526

• 1%

in ‘000 MT

Operational Performance – Upstream

60

Better OER in Malaysia, Indonesia and Liberia compensated the lower OER in PNG/SI

▪ Malaysia & Indonesia: OER improved YoY due to continuous

• perational efficiency

initiatives as well as uninterrupted harvesting and crop evacuation ▪ PNG/SI: OER was affected by heavy rainfall which delayed harvesting ▪ Liberia: Better OER due to ongoing efforts to improve crop quality

Note: p.p. – Percentage points

+0.78 p.p. YoY +0.44 p.p. YoY

CPO Extraction Rate (OER) in %

Q3 FY2019 QE Sep 2018

YoY p.p.

9M FY2019 9ME Sep 2018

YoY p.p.

Continuing Operations Upstream Malaysia 21.59 20.66

+0.93

21.21 20.64

+0.57

Upstream Indonesia 22.19 21.04

+1.15

21.81 21.10

+0.71

Upstream PNG/SI 22.01 22.11

• 0.10

21.81 22.16

• 0.35

Total for Continuing Operations 21.85 21.07

+0.78

21.50 21.08

+0.42

Discontinuing Operation Upstream Liberia 20.49 19.44

+1.05

22.16 18.66

+3.50

Total for all

• perations

21.84 21.06

+0.78

21.51 21.07

+0.44 21.84 21.06

Q3 FY2019 QE Sep 2018

21.51 21.07

9M FY2019 9ME Sep 2018

CPO EXTRACTION RATE

TOTAL UPSTREAM

from all operations

in %

Operational Performance – Upstream

61

Despite current improvements in CPO and PK prices, this will have minimal impact on SD Plantation’s FY2019 results given its committed forward sales

• 6% YoY
• 14% YoY

Average CPO Prices Realised in RM/MT

Q3 FY2019 QE Sep 2018

YoY %

9M FY2019 9ME Sep 2018

YoY %

Continuing Operations Upstream Malaysia 2,028 2,223

• 9%

2,019 2,377

• 15%

Upstream Indonesia 1,929 1,803

+7%

1,956 2,077

• 6%

Upstream PNG/SI 1,985 2,289

• 13%

2,050 2,515

• 18%

Average for Continuing Operations 1,990 2,119

• 6%

2,007 2,322

• 14%

Discontinuing Operation Upstream Liberia 1,775 1,918

• 7%

1,929 2,075

• 7%

Group average for all operations 1,988 2,117

• 6%

2,006 2,320

• 14%

1,988 2,117

Q3 FY2019 QE Sep 2018

2,006 2,320

9M FY2019 9ME Sep 2018

AVERAGE CPO PRICES REALISED

GROUP AVERAGE

for all operations

in RM/MT

Impact of lower average CPO and PK prices realised

• n our profit

62

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

Financial Performance – Downstream

63

Improved earnings attributable to better contribution from differentiated businesses and trading operations

in RM’mn

Note: * After deducting corporate expenses of RM3 million registered in Q3 FY2019 and RM10 million in 9M FY2019

Sime Darby Oils’ profit was 42% higher YoY in Q3 FY2019 mainly due to: ▪ Better margins and higher sales volume from differentiated businesses, particularly in Asia Pacific ▪ The trading operations posted better results attributable to higher margins arising from zero export duty for both Malaysia & Indonesia in Q3 FY2019 Offset by: ▪ Lower contribution from bulk operations in Q3 FY2019 due to better performance from Indonesia in QE Sep 2018 amid high inventory levels in the country

68 48

Q3 FY2019 QE Sep 2018

204 181

9M FY2019 9ME Sep 2018 * *

+42% YoY +13% YoY

TOTAL DOWNSTREAM

Recurring PBIT in RM’mn

Q3 FY2019 QE Sep 2018

YoY %

9M FY2019 9ME Sep 2018

YoY %

Differentiated 25 5

>+100%

95 68

+40%

Trading 26 11

>+100%

61 41

+49%

Bulk 20 32

• 38%

58 72

• 19%

Operational Performance – Downstream

64

Higher sales volumes and better margins in Q3 FY2019 were driven by the differentiated businesses

Sales volume from differentiated businesses were 7% higher YoY in Q3 FY2019 attributable to higher contribution from Asia Pacific Utilisation improved to 82% of the total capacity of 3.74mn MT per annum

in ‘000 MT in %

+7% YoY

82 77

Q3 FY2019 QE Sep 2018

76 74

9M FY2019 9ME Sep 2018

403 377

Q3 FY2019 QE Sep 2018

1,162 1,172

9M FY2019 9ME Sep 2018

• 1% YoY

CAPACITY UTILISATION SALES VOLUME

Asset Monetisation Exercise

65

SD Plantation’s pipeline of cash flow from the asset monetisation exercise

Cashflow in RM’mn

Entire 51% equity stake in Golden Hope-Nha Be Edible Oils Company (GHNB), Vietnam

45

FY2019

• FY2020

Entire 100% equity stake in PT Mitra Austral Sejahtera (PT MAS), Indonesia

103

• Land sales in Malaysia

4 >500

Non-core and non-strategic assets, non-profitable assets, low yielding assets, and adjacent investments

• >600

PROGRESS TO-DATE

• No. of SPA

Acres Total SPA 16 3,329 SPA signed to-date* 11 2,322 Completed 2 24

TOTAL IMPACT ON CASHFLOW 152 >1,100

* Out of the 11 SPAs signed, 8 SPAs require approval by the Estate Land Board (ELB) and Economic Planning Unit (EPU). To-date, up to 6 of the 8 SPAs have been approved by either ELB

• r EPU.

Appendix

Summary of Operational Statistics

67

As at 30 September 2019

Breakdown of Age Profile

68

As at 30 September 2019

THANK YOU

SIME DARBY PLANTATION INVESTOR RELATIONS

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