SIME DARBY PLANTATION

Management Roadshow
November 2017
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 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.

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Strictly Private & Confidential 1

Table of Contents

Section Page
1. Sime Darby Pure Play Exercise - Transaction Overview 3
2. Sime Darby Plantation
- Company Overview 9
- Key Investment Highlights 12
- Business Strategies & Future Plans 24
- Industry Outlook 34
- Financial Overview 37

Strictly Private & Confidential 2

 Sime Darby Pure Play Exercise -
Transaction Overview

Strictly Private & Confidential 3

Sime Darby Pure Play Exercise – Transaction Overview

Existing Corporate Structure Corporate Structure Post Proposals

Other Other
ASB PNB EPF KWAP ASB PNB EPF KWAP
Shareholders Shareholders

40.79% 6.15% 11.12%* 5.61%^ 36.33% 40.79% 6.15% 11.12%* 5.61%^ 36.33%

Sime Darby Same set of shareholders will

continue to hold the same
Berhad
shareholding in each entity
Listed company

Trading, Sime Darby Sime Darby Sime Darby

Property Plantation Logistics & Property Plantation Berhad
Others Listed Listed Listed
company company company
100% 100%

Sime Darby Sime Darby Trading,

Property Plantation Property Plantation
Logistics &
Business Business
Others

Conglomerate group structure involved in distinct

businesses, i.e. plantation, property, trading, logistics &
others

Notes:
* Comprising 9.9% direct interest and 1.22% indirect interest (managed by/through Citigroup Nominees (Tempatan) Sdn Bhd for EPF)
^ Comprising 5.22% direct interest and 0.39% indirect interest (managed by KWAP’s fund managers)

Source: Shareholding Structure as at 15 Oct’17 as extracted from the Circular

Strictly Private & Confidential 4
 Listing of Pure Plays – Reference Prices

Illustrative Reference Price

Based on Percentage Allocation Range
Percentage
Companies Allocation Mid-Point Minimum Maximum
Range
Share Market Share Market Share Market
Price Cap Price Cap Price Cap
(RM) (RM’bn) (RM) (RM’bn) (RM) (RM’bn)
Sime Darby
60%-68% 5.79 39.4 5.43 36.9 6.15 41.8
Plantation
Sime Darby
16%-19% 1.58 10.7 1.45 9.9 1.72 11.7
Property
Sime Darby
- 1.68 11.4 2.17 14.7 1.18 8.0
Berhad

TOTAL - 9.05 61.5 9.05 61.5 9.05 61.5

Note: Information regarding reference price is stated in Page 11-19 of the Circular to Shareholders – Part 1 (dated 4 Nov 2017)

Strictly Private & Confidential 5

 Listing of Pure Plays – Justification for Sime Darby
Plantation’s Reference Price

1 Net Earnings Per Share

Sime Darby Plantation’s adjusted net EPS of 19.48 sen per share for FY2017.

2 Price-to-Earnings Ratio (PER)

Sime Darby Plantation Mid-Point Minimum Maximum

Share Price (RM) 5.79 5.43 6.15

FY2017 PER 29.7x 27.9x 31.6x

Comparable listed companies for Sime Darby Plantation:

Companies PER

IOI Corp 38.8x

KLK 23.1x

Genting Plantations 18.9x

AVERAGE 27.0x

The implied PER of Sime Darby Plantation would be between 27.9x to 31.6x, which falls within the PER
range of the selected comparable listed companies of between 18.9x to 38.8x.

3 Net Assets

Sime Darby Plantation’s pro-forma consolidated Net Assets of RM2.00 as at 30 June 2017.

Strictly Private & Confidential 6

 Listing of Pure Plays – Justification for Sime Darby
Plantation’s Reference Price (cont’d)

4 Sime Darby Plantation’s Competitive Strengths

• The world’s largest oil palm plantation company by oil palm planted areas;
• The world’s largest CSPO producer;
• A wide and diverse geographical reach; and
• Recognised for our sustainability credentials and product quality:
o Innovation and R&D-driven;
o Fully integrated business model that allows us to leverage and diversify along the palm oil
value chain; and
o An experienced and sound Board and management team.

5 Sime Darby Plantation’s Strategies and Future Plans

• To drive operational excellence in its upstream business by achieving FFB yield of 25 MT/ha and
OER of 25% by year 2025;
• To serve its customers’ evolving needs in its downstream business; and
• Maximise returns across the palm oil value chain by leveraging on its integrated business model.

6 Favourable Outlook of the Palm Oil Industry with Expected Higher Demand for Palm Oil

Strictly Private & Confidential 7

Milestones Following Actual Listing Submission

24 Aug 26 Oct 3 Nov 4 Nov 20 Nov Target

Thu Thu Fri Sat Mon
End Nov

• Listing
EGM

• The approval • Securities • Announcement • Despatch of Submission of • Issuance of

from the Commission of notice of Circular to confirmation of Prospectus
Board of Sime (SC)’s and SC Extraordinary Sime Darby registration of
Darby Berhad Equity General Berhad’s Prospectus to
on the Compliance Meeting shareholders the SC
Proposals Unit’s (“EGM”)
including the approvals
capitalisation, obtained
share split,
distribution
and listing of
the Identified
Entities
obtained

Strictly Private & Confidential 8

 Company Overview

Strictly Private & Confidential 9

Business Overview
Integrated Plantation Company Involved in the Entire Palm Oil Value Chain
Upstream
Oil palm estate Mill
Oil palm, rubber & sugarcane
estates
 Developing, cultivating and
managing oil 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
Strictly Private & Confidential
Downstream
Refinery Food application
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
oleochemicals, biodiesel products
and derivatives
10
Others
High-yielding Renewables
genome seeds
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 bio-based chemicals,
biogas and composting
Agribusiness
 Provision of agriculture products and
services
Sime Darby Plantation Berhad
Snapshot of Oil Palm Plantation Operational Statistics

FY16/17 unless otherwise PNG & Solomon

stated Malaysia Indonesia Islands Liberia Total

Total oil palm

303,367 202,191 86,493 10,401 602,452
planted area(1) (ha)

Mature area(1) (ha) 251,629 161,621 76,281 9,356 498,887

8% 7% 5% 12% 10%
Palm tree age 17% 20% 12%
profile & average 18%
tree age (1)
24%
(Years) 12.6 yrs 20% 39% 14.3 yrs 9% 11.9 yrs 4.7 yrs 12.9 yrs

<3 yrs 4-8 yrs 9-18 yrs

19-22 yrs >22 yrs 25% 47%
37% 90%

FFB production (mm

5.29 2.67 1.79 0.03 9.78
MT/year)

Mill production (mm

MT/year)

 CPO 1.20 0.72 0.55 0.01 2.48

 PK 0.29 0.16 0.14 0.00 0.58

FFB yield (MT/ha) 20.76 16.03 23.88 4.04 19.44

OER 20.56% 21.30% 23.10% 18.73% 21.29%

KER 4.95% 4.67% 5.73% 2.48% 5.02%

Note:
(1) As at 30 Sep 2017
Strictly Private & Confidential 11 Sime Darby Plantation Berhad
 Key Investment Highlights

Strictly Private & Confidential 12

INVESTMENT HIGHLIGHTS – PLANTATION
World’s Largest Sustainable Palm Oil Producer

1 Strong Market Position as 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

2 Well Positioned to Benefit from Sound Industry Fundamentals &

Strong Demand Growth Trends

3 Fully Integrated Business Model with Diversified Operations

Along the Palm Oil Value Chain

4 Innovative & Market Leading R&D Supports Operational

Efficiency & Productivity

5
Sound Financial Profile and Resilient Business Model

6
Experienced and Sound Board & Management Team

Strictly Private & Confidential 13 Sime Darby Plantation Berhad

1 World’s Largest Oil Palm Plantation Company with
More Than 600,000 Hectares of Planted Area
We are the world’s largest oil palm plantation company by oil palm planted area with c.2.8% market share(1)
and total landbank of more than 983,000 hectares across Malaysia, Indonesia, PNG & Liberia

~600,000 hectares
World’s Largest Oil Palm Plantation Company
by Planted Area with c.2.8% Market Share

World’s Largest Oil Palm Plantation Company (by planted area) % global market
Planted & Mature Area (Ha)(3) share(1)
(4)

20% of Global CSPO SD Plantation 502 603 2.8%

Production Capacity(1)
Golden Agri 466 488 2.3%
Leader in Sustainability - World’s
Largest Producer of CSPO FGVH 258 341 1.6%

Astra Agro 266 297

2.5 mn MT
1.4%

Salim 204 247 1.2%

FY17 CPO Production
(~4% of Global Market Share)(2) Wilmar 208 242 1.1%

First Resources 159 209 1.0%

251 72 11 KLK 176 205 1.0%

Estates Mills Crushing Plants IOI 148 179 0.8%
(inclusive of soy crushing plant)
GENP 100 141
4 mn MT p.a.
0.7%

Sinar Mas 137 139 0.6%

Total Refining Capacity (12 Refineries)
Sampoerna 116 136 0.6%

Market Leading R&D Persero 116 127 0.6%

Edison Award 2017 under the Energy and Sustainability category Nusantara 92 102 0.5%
(Genome Select Oil Palm Project)
Notes: LSIP 83 95 0.4%
(1) Estimated based on global planted area of 21.5 mm ha worldwide
(2) Based on 2016 global CPO production of 58.9 mm MT
(3) Based on latest financial year end
(4) As at 30 Jun 2017
Source: Frost & Sullivan, company

Strictly Private & Confidential 14 Sime Darby Plantation Berhad

 World’s Largest Oil Palm Plantation Company by Oil Palm Planted Area, with
1 a Wide and Diverse Geographical Reach and the World’s Largest Producer of
Certified Sustainable Palm Oil

Future: “RSPO and

Our journey to sustainability Beyond” vision
• To prevent value
2015
erosion in our
• Acquisition of New
businesses from
Britain Palm Oil Limited,
2017 unethical behavior
a 100% RSPO certified &
• Edison Awards • To maintain established
traceable palm oil
(Bronze) under sustainability
producer in terms of
Energy & credentials and policies
processing identity
preserved or fully Sustainability
segregated oil category
SDP
2004 • Global Sustainability
• First Sustainability
Leadership Award from
GLOBALG.A.P. Brand
the World
certification Sustainability Congress
1996 which recognises
• EMS-ISO efforts for good
1985 14001 agricultural
• Introduced certification for practices
Zero- environmental 2016
Burning management • Launched the
replanting systems Responsible
2014 Agriculture
technique • Signed the Charter (RAC)
Sustainable
2002 Palm Oil
• Founding Manifesto
1992 member
• United Nations of RSPO • HCS+
Environment methodology for
Programme’s oil palm
Global 500 Award
for Zero-Burning
replanting
technique
15
Strictly Private & Confidential 15
1 Sustainability – Committed to Good Agriculture Practices

RSPO Certification Status Open Palm Traceability

97% Sime Darby Open Palm

Traceability Dashboard
Upstream – Mill
Traceable up to
RSPO-certified provides SD Plantation’s
plantations
As at 30 Sep 2017 customers with access
to source the products FFB
MALAYSIA INDONESIA PNG & SI purchased from SD
100% 96% 100% Plantation
88.4%
Traceable

High Carbon Stock (HCS) Commitment

As at 30 Sep 2017
As a signatory to the Sustainable Palm Oil Manifesto, we are
committed to implement leading industry practices around
High Conservation Value and HCS in new developments Downstream – Refinery, KCPs & Biodiesel
Traceable up to plantations Traceable up to mills
Responsible Agriculture Human Rights Charter
Charter (RAC) CPO Palm Kernel CPO Palm Kernel

Launched in Sep’16 with SD Sime Darby launched it’s

Plantation’s focused Human Rights Charter to 80.5% 81.7% 96.7% 100%
Traceable Traceable Traceable Traceable
commitments on: articulate its commitment
• Human rights & social in respecting human
development rights in line with the United
• The environment Nations Guiding Principles on As at 30 Sep 2017
• Corporate integrity Business and Human Rights

Strictly Private & Confidential 16 Sime Darby Plantation Berhad

1 Sustainability – Driving Market Demand

CSPO Production Capacity

660k MT/year
NURI REFINERY (MALAYSIA)

Sime Darby
Plantation
20%

11.8
NEW BRITAIN OILS (UK)

mn MT
Global CSPO Production
Capacity
(as of 31 Jul 2017)

Other  All of SD Plantation’s refineries are RSPO-

Certified certified
Players
80%  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
Source: Company, Frost & Sullivan
 PQ oil offers low free fatty acid oil blends
Strictly Private & Confidential 17 Sime Darby Plantation Berhad
2 Well Positioned to Benefit from Sound Industry
Fundamentals & Strong Demand Growth Trends (1/2)
Our wide & diverse geographical reach of business operations will allow us to leverage on strong industry
fundamentals

Strong Geographical Presence

Upstream Operations FY17 Total Revenue = RM14,779 mm

 Presence in 5 Countries - Malaysia, Indonesia, Others, 9%

PNG & Solomon Islands, Liberia
 Developing, cultivating and managing oil Other SEA, 13%
palm, rubber & sugarcane plantation estates Geographical Malaysia,
 Operates and manages 249 plantation estates
Breakdown South Africa, 23%
and 72 palm oil mills for FY17 Total 5%
Revenue
 Cattle rearing & beef production China, 2% Europe,
22%
Indonesia, India,
Downstream Operations 19%
7%

 Operating across 16 Countries - Malaysia,

Indonesia, Netherlands, Thailand, United
Kingdom, PNG, Vietnam & others Market Reach
c. RM10.8 bn or 73% of FY17 revenue is
 Production & sales of bulk & refined oils and Extends to
fats, oleochemicals, biodiesel products and the Top 5 derived from the Top 5 Global Palm Oil
derivatives Global Palm Consuming Countries/Region
 Manages and operates 12 refineries with a Oil
Consumer(1) (from Malaysia, Europe, India, Indonesia & China)
total refinery capacity of 4 mm MT/year

Note:
(1) The top 5 palm oil consuming countries/regions based on global palm oil consumption in 2016 are India, Indonesia, EU, China and Malaysia, which collectively accounted for c.53% of total
consumption in 2016
Source: Frost & Sullivan, company

Strictly Private & Confidential 18 Sime Darby Plantation Berhad

2 Well Positioned to Benefit from Sound Industry
Fundamentals & Strong Demand Growth Trends (2/2)
Our wide & diverse geographical reach of business operations will allow us to leverage on strong industry
fundamentals

Capitalising on strong demand growth for palm oil

Demand for Palm Oil Estimated to Reach 81.7 mn Increasing Demand for Palm Oil & Edible Oils Driven by Growing
MT by 2022, Providing Support to CPO Prices Population & Food Requirements
Global Edible Vegetable Oil Consumption (mn MT)
177.1 183.6
804 166.1 173.8
795 793 158.8
782
771 2012-2016 CAGR
107.8 109.5 114.5 Palm oil: +4.4%
761 100.5 101.8
750 PKO: +3.7%

6.4 6.5 6.8 6.6

5.7
81.7 52.6 57.9 59.5 60.8 62.5
77.7
73.8
70.2 2012 2013 2014 2015 2016
66.9
62.5 63.9
Palm Oil Palm Kernel Oil Others

Strong CSPO Sales Growth Globally is a Direct Consequence of the

Sustainability Commitments of Various FMCG companies
Global Sales of Certified Sustainable Palm Oil (mn MT)

2016 2017F 2018F 2019F 2020F 2021F 2022F

6.18 5.63
5.35
4.51
Palm oil consumption (mm MT) 3.48
2.49
1.28
CPO Price, CIF Rotterdam (constant USD)

2010 2011 2012 2013 2014 2015 2016

Note:
(1) Price rationalization expected in 2017 due to recovery of FFB yield and CPO production in Indonesia & Malaysia post El Nino drought.
Source: Frost & Sullivan, World Bank

Strictly Private & Confidential 19 Sime Darby Plantation Berhad

3 Fully Integrated Business Model with Diversified
Operations Along the Palm Oil Value Chain
With a fully integrated business model, we are able to diversify our earnings risk from volatility of commodity
price and leverage on operational synergies

Upstream Downstream

Crushing Transportation,
plants & storage & Sales & R&D and
Plantation Mills
Refineries distribution marketing renewables

We have established a fully integrated business model that operates across the entire spectrum of the palm oil value chain

Key Benefits of a Fully Integrated Business Model

1 Economies of scale & cost synergies 2 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

Strictly Private & Confidential 20 Sime Darby Plantation Berhad

4 Market Leading R&D Supports Operational Efficiency
& Productivity

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 oil
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

Strictly Private & Confidential 21 Sime Darby Plantation Berhad

5 Sound Financial Profile & Resilient Business Model
We sustain long-term growth whilst maintaining ready access to capital markets and preserve our ability to
repay and service debt obligations over time evidenced by our investment grade ratings along with a stable
outlook

Sound Financial Profile & Resilient Business Credit Rating of SD Plantation

1
Resilient business model

 Vertically integrated and geographically diversified

AAA
operations
 Ability to better withstand economic downturn and
moderate impact from such volatilities
 Steady performance throughout the years despite BBB+
adverse weather conditions and market volatilities (EXP)
2
Disciplined approach in capital allocation
and cash flow management

 Committed towards optimising our capital structure in

Baa1
order to ensure a competitive cost of capital
 Implementation of an optimal capital structure by
balancing debt and equity levels by putting in place
appropriate dividend and financing policies

Strictly Private & Confidential 22 Sime Darby Plantation Berhad

6 Experienced and Sound Board & Management Team

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

Board of Directors

Board members have Tan Sri Dato’ Tan Sri Dato’ Seri
Dato’ Mohamad Dato’ Mohd Zainal Abidin
held prominent Abdul Ghani Mohd Bakke
Nasir Ab. Latif Nizam Zainordin Jamal
Othman Salleh
positions and Chairman and Non- Executive Deputy
Non-Independent Non-Independent Non-Independent
directorships in Independent Non- Chairman and
Non-Executive Non-Executive Non-Executive
Director Director Director
areas such as Executive Director Managing Director
plantation, banking
and finance sectors Datuk Zaiton
Dato’ Che
and in governmental, Tan Sri Datuk Dr. Abdullah @
Mohd Hassan Muhammad Lutfi Tan Ting Min
regulatory and Yusof Basiran Rashidi Che
Senior Independent Independent Non- Omar Independent Non-
professional bodies Independent Non-
Non-Executive Executive Director Executive Director
Executive Director Independent Non-
Director
Executive Director

Management Team

Tan Sri Dato’ Seri

Mohd Haris Mohd
Mohd Bakke Datuk Franki Renaka Mohamad Helmy
Arshad
Experienced Salleh Anthony Dass Ramachandran Othman Basha
Chief Operating
management team Executive Deputy Chief Advisor and Chief Financial Chief Operating
Officer,
with an average of Chairman and Value Officer Officer Officer, Upstream
Downstream
Managing Director
about 15 years of
experience in the
plantation industry Dr. Harikrishna
Dr. Simon Lord
Kulaveera-
Chief Sustainability singam
Officer
Head of R&D

Strictly Private & Confidential 23 Sime Darby Plantation Berhad

 Business Strategies & Future Plans

Strictly Private & Confidential 24

The Strategy Moving Forward – What is Different?
VISION

‘The Leading Global Integrated Palm Oil Player’

The global brand for plantation sustainability

1 UPSTREAM 2 DOWNSTREAM 3 INTEGRATION

DRIVING OPERATIONAL SERVING THE MAXIMISING RETURNS

STRATEGY
GROWTH

EXCELLENCE VIA CUSTOMERS OF THE ACROSS THE PALM OIL

DIGITISATION FUTURE VALUE CHAIN
TARGETS
BY 2025

Towards Mission 25:25 Higher Downstream Integrated economics

PBIT contribution across the value chain
Achieving FFB yields of 25 MT/Ha &
OER of 25% by 2025 20% of PBIT within the next 5 years

Relentless Focus on Execution to Drive Value Creation

Strictly Private & Confidential 25 Sime Darby Plantation Berhad

Medium to Long Term Targets

LONG-TERM
CURRENT FY2025
FY2017
25
FFB Yield
(MT/ha)
19
FFB Yield
(MT/ha)
25%
OER

21.3% Lower
OER Cost to customer

Higher
5.2% Downstream
Contribution1
Downstream
Contribution1

1 % of Contribution to Plantation PBIT , Source: Company Presentation

Strictly Private & Confidential 26 Sime Darby Plantation Berhad

Upstream –Driving Operational Excellence

ELEVATING YIELD PERFORMANCE THROUGH ON-

GOING PROCESS ENHANCEMENTS
A ACCELERATED B SUPERIOR C WATER D MECHANISATION
REPLANTING PLANTING MANAGEMENT • Enhancing automation
• Group : 5% MATERIAL • Effective water & digitisation
(Indonesia : 7% • High yielding management & • Advanced milling &
staggered) planting conservation latest extraction
material (e.g. practices technologies
Genome, Dami)

FFB Yield
(MT/ha)
22.0
24.0

20.0
20.7
21.5
20.5
21.5
20.4 20.4
18.8
19.4 25
MT/ha
18.0

16.0

Oil 14.0 25.0

25
Extraction
12.0 23.2 23.2
22.5 22.8
Rate 21.9 21.8 21.8 21.9 21.9 22.1
10.0 21.5 21.7 21.3 %
(%)

FY 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2025

Source: Company

Strictly Private & Confidential 27 Sime Darby Plantation Berhad

A ACCELERATED REPLANTING B SUPERIOR PLANTING MATERIAL

Upstream – Replanting with High Yielding Materials

Replanting
Rate 5-7% Average
Age
10 yrs
By 2025

Malaysia Indonesia PNG & SI Liberia

8% 7% 5%
17% 12% 10%
20%
12%
18%
Average
Age Avg age: Avg age: 9%
Avg age: 24% Avg age:
12.6 yrs 20% 39% 14.3 yrs 11.9 yrs 4.7 yrs
Profile(1)
(years)
37% 25% 47% 90%

<3 years 4-8 Years 9-18 Years 19-22 Years >22 Years

NEW PLANTING MATERIALS

High
Yielding
GENOME SELECT
Materials
SUPER FAMILY DAMI

Note: (1) As at 30 Sep 2017 Genome Select can deliver higher oil yield as compared to our current commercial offering, Calix 600
Source: Company
Strictly Private & Confidential 28 Sime Darby Plantation Berhad
 C WATER MANAGEMENT

Upstream – Innovative Watering Initiatives

Innovative and cost effective irrigation techniques to ensure that

our estates and mills maintain adequate and consistent water
supply during prolonged dry months

PAPUA NEW GUINEA

MALAYSIA INDONESIA LIBERIA
& SI

• 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

Strictly Private & Confidential 29 Sime Darby Plantation Berhad

 D MECHANISATION

Upstream – Focusing on Cost Reduction

HOW ?
MECHANISATION
 Enhanced processes, new technologies
and automation to drive better OER
 Increase manpower ratio per ha

TRANSFORMATIVE RESTRUCTURING
 Continuous implementation of Lean Six Sigma
across the entire value chain
 Undertaking robust overheads and capital
expenditure reviews
 Productivity improvement
 Outsourcing of services
 Streamlining of operations

COST REDUCTION
 Ongoing cost synergy initiatives

Source: Company Presentation

Sime Darby Plantation Berhad

Strictly Private & Confidential 30

D MECHANISATION

Upstream – Moving Towards a Connected, Integrated, Automated and

Sustainable Plantation

SIME DARBY DIGITAL SIME DARBY DRONE

MECHANISATION INITAITIVE
SUPERVISION (SDDS) MONITORING

Among the first in the Malaysian
oil palm industry to digitally
connect upstream operations
(from estate office to field and
from mill office to factory floor)
(SEMUA 2.0 app)
 Lower manpower requirement
 Increase in productivity
 Deployment of unmanned aerial
vehicles for Estate mapping
 Analysis of conditions for
speedy intervention
 Monitoring and supervision

ENHANCING OER AND MILL

INNOVATIVE WATERING
EFFICIENCY

SD Plantation has embarked on Also includes advanced milling and

commercial scale water latest extraction technologies
conservation and irrigation through

 continuous processing, integrated

Micro Sprinkler Water Reservoirs
processing complex

 minimum GHG emissions

 zero discharge

Source: Sime Darby Plantation’s Presentation for Perpetual Sukuk Programme

Strictly Private & Confidential 31 Sime Darby Plantation Berhad

Downstream – To become the preferred sustainable
palm oil & fats specialist and customer solutions provider

HOW DO WE DELIVER VALUE ?

• Focus on differentiated, sustainable and

traceable high value products

• Explore & expand opportunities to increase

our presence in key geographical markets
Such as India, Southeast Asia, the United States, Europe, Africa, the
Middle East and China

• Create value by marketing and

strengthening the “Sime Darby” brand
Through achieving sustainability, quality and food safety requirements

Strictly Private & Confidential 32 Sime Darby Plantation Berhad

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

Drive physical CSPO sales Drive production of differentiated products

A B

Emphasis on
Physical CSPO Differentiated
Sales vs Commodity

Increase production of PQ oil Segregated & traceable refineries

C D
PQ Oil as the
Supply Chain
Gateway to
Optimisation
Niche and High
to Maximise
Value Food
Value of CSPO
Segments

Strictly Private & Confidential 33 Sime Darby Plantation Berhad

 Industry Outlook

Strictly Private & Confidential 34

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

Growing Competitive Wide Range of Increased

Demand for Pricing of Palm Uses for Palm Oil, Increased in consumer
Food due to Oil and Price Palm Kernel Oil Biodiesel awareness on
Increase in Affordability of and their Related Demand food
Population Edible Palm Oil Products sustainability

To increase by The physical and Lower oil reserves CSPO sales grew
chemical and increased in
60% at a CAGR of
Price
Type of Oil (USD/MT) characteristics of oil oil extraction cost
By 2050 to meet
in 2016
palm products and has driven the global 28.0%
Palm Oil 718 – 751 their derivatives allow demand for palm oil between 2010 and
increase in energy
them to be applied in for the production of 2016, driven by a
intake demand Soybean Oil 736 – 851 a wide variety of biodiesel direct consequence of
(from 2005 – 2007)
Coconut Oil 1,621 both food and the sustainability
Average daily energy
non-food end-user By 2052, it is commitments of FMCG
Palm Kernel Oil 1,436
supply expected to industries estimated that oil companies
increase by 11%
Corn Oil 886 – 999 reserves may no
longer be able to By 2020, CSPO sales
during the same Rapeseed Oil 883
is estimated to reach
support the global
period
Groundnut Oil 1,544 economy c. 11.0 mm MT

Strictly Private & Confidential 35 Sime Darby Plantation Berhad

Outlook of the Global Palm Oil and Edible Oils Market

Global CPO production, palm oil consumption, demand Demand for Edible Oils Expected to Remain Strong Over
for CSPO and CPO prices expected to increase the Next 5 Years

Global CPO Production and Consumption Forecast Global Consumption of Selected Edible Oils

Global Palm Oil Consumption Global CPO Production

(mn MT)
(mn MT)
78.9
76.6 212.1
74.2 206.1
71.8 201.1
69.6
196.0
65.4 191.4
186.2
182.2
58.9

62.5 63.9 66.9 70.2 73.8 77.7 81.7

2016 2017F 2018F 2019F 2020F 2021F 2022F 2016 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F

Increased in CPO production largely backed by Factors driving demand for edible oils:
technological advancements, including:  Growing population and increasing food consumption and
 Usage of high yield oilseeds usage of non-food applications of edible oils (e.g. soap
 Usage of mechanisation in the harvesting process and detergents)
 Ban on trans-fats in the U.S. by June 2018 likely to drive
demand for vegetable oil alternatives from hydrogenated
Factors driving demand for palm oil:
oils
 Increase in global population & food requirements
 Wide range of uses of edible oils & fats
 Ongoing efforts in developing biodiesel programs by
nations (e.g. the EU, the U.S., Brazil and Indonesia)

Strictly Private & Confidential Source: IMR Report prepared by Frost & Sullivan 36 Sime Darby Plantation Berhad
 Financial Overview

Strictly Private & Confidential 37

Key Financial Metrics

Revenue (RM'bn) PBIT (RM'mn)

FY15 10.30 FY15 1,538

FY16 11.95 FY16 1,259

FY17 14.78 FY17 1,987

3-year average 12.34 3-year average 1,595

PATAMI (RM'mn) ROIC %

FY15 997 FY15 7

FY16 967 FY16 4

FY17 1,038 FY17 8

3-year average 1,001 3-year average 6

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

Strictly Private & Confidential 38

Revenue and PBIT

FY17 Revenue FY17 Revenue

Revenue
by Segment by Geography

RM’mn

Increase was primarily due to the Others

Increase was primarily due to the 0.4%
increase in sales of our refined
increase in the sales of our palm South PNG China Liberia
oil products (i.e. our upstream
Africa & 2% 0%
edible oils and fats (downstream Other
operations) and our refined edible SI
operations), sugar and beef
oils and fats (i.e. our downstream 5%
(upstream operations), mainly as
countries 2%
operations). Upstream 7%
a result of the full year
consolidation of NBPOL Group’s 25% Indonesia Malaysia
financial result. 7% 23%

Downstream Europe
Other SEA
75% 22%
13%
14,779.4 India
19%

11,946.5 FY17 PBIT by Segment

10,304.0 Others
-1%

Downstream
5%

Upstream
94%

2015 2016 2017

Strictly Private & Confidential 39 Sime Darby Plantation Berhad

Expenses, Operating Profit & PAT

Operating Expenses Operating Profit & Operating Profit Margin

RM’mn
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
Increase is mainly due to
increased expenses from our
upstream operations as well as an
increase in edibles and
consumables expenses from our
downstream operations
12,991.0
The lower overall operating profit Increase due to the higher
margin is a result of lower FFB revenue and gain from the
yield. However, this was partially sale of the parcel of lands
offset by the improvement of the to KSDB
operating profit margin in our
downstream operations.
30.7%
15.2%
10.6%
4,537.9
1,570.9 1,268.0

2015 2016 2017

11,130.9
PAT & PAT Margin
RM’mn
24.0%
9,185.3

10.0% 8.4%

3,551.9

1,031.4 1,002.9

2015 2016 2017 2015 2016 2017

Strictly Private & Confidential 40 Sime Darby Plantation Berhad

Working Capital & Capitalisation and Indebtedness

Working Capital Turnover Period Indebtedness by Maturity

Days RM’mn
Receivables Inventory Payables
4,690.5

85
78
71
52
46 44 39 38 34
1,325.4
1,037.0
685.0

2015 2016 2017 Within 1 year 1-2 years 2-5 years More than 5
years

Current Ratio Gearing Ratio(1)

(x) (x)
1.3
0.6 0.6
1.1
0.5

0.5

2015 2016 2017 2015 2016 2017

Note: (1) Based on bank borrowings

Strictly Private & Confidential 41 Sime Darby Plantation Berhad
Dividend Policy

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

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.

Strictly Private & Confidential 42 Sime Darby Plantation Berhad

 Thank You

Strictly Private & Confidential 43