Golden Agri-Resources Ends 2019 on a High Note

Full year EBITDA grew by 22 percent to US$697 million while Underlying Profit achieved at US$272 million

Increased contribution from downstream business to EBITDA resulted in stronger year-on-year results despite lower average CPO prices

Proposed final dividend of 0.58 Singapore cents per share for full year 2019 performance,same with the previous year's distribution

Financial Highlights

US$'million

Year ended 31 Dec

Change

Quarter ended

Change

2019

(FY2019)

2018

(FY2018)

31Dec

2019

(4Q 2019)

30Sep

2019

(3Q 2019)

Revenue

6,432

7,167

-10%

1,702

1,563

9%

Gross Profit

831

1,007

-17%

299

188

59%

EBITDA[1]

697

573

22%

392

107

267%

UnderlyingProfit[2]

272

181

50%

284

3

8673%or n.m

Net Profit/(Loss)[3]

194

(2)

n.m

240

0.8

n.m

Earnings/(Loss)per Share[4] (US$cents)

1.56

(0.01)

n.m

1.92

0.01

n.m

SINGAPORE,Feb. 28,2020 -- Golden Agri-Resources Ltd and its subsidiaries ("GAR" or the "Company") showed a robust performance ending the full year with EBITDA[1]at US$697million,growing by 22percent from last year with contribution from the downstream business at 57percent. Underlying profit[2]increased by 50percent to US$272million in 2019.

Fourth quarter EBITDA[1]reached US$392million supported by strengthening palm oil prices during the quarterand a net fair value gain of financial assets of US$214 million recorded in accordance with IFRS9.Underlying profit[2] forthe fourth quarterwas also higher at US$284 million.

This performance was achieved despite a ten percent lower revenue of US$6.43billion in 2019. WeakerCPO market prices and plantation output continued to impact revenue.CPO market prices (FOB Indonesia) averaged US$523 per tonne during 2019,a decrease of seven percent compared to the previous year.

Mr. Franky O. Widjaja,GAR Chairman and Chief Executive Officercommented on the results: "I am pleased to see GAR close the year with improved results despite the weak CPO price in 2019. Prices strongly rebounded towards the end of the year supported by a tightening supply and demand situation. Supply growth in 2020 is expected to slow down further given dry weather conditions last year,while demand will be boosted by the B30 biodiesel mandate implementation in Indonesia. While we believe that the strong CPO price trend will continue,the appearance of the COVID-19 epidemic in China is a new risk factor. While we continue to monitor development of the outbreak closely,we expect the impact on palm oil demand to be modest and short term."

For GAR's2019 performance,the Board proposes a final dividend of 0.58 Singapore cents per share or approximately US$55 million in total,representing20 percent of underlying profit[2]. The proposed dividend will be distributed on18May 2020 subject to approval from GAR's shareholders at the Annual Meeting.

Segmental Performance

Plantations and Palm Oil Mills

As at 31December 2019,GAR's planted area stood at 498thousand hectares,of which 21 percent owned by plasma smallholders. The accelerated replanting of old estates totalled 17,200 hectares in 2019,bringing down the average age of trees to 16 years. The new estates use next-generation,higher yielding planting materials,and are designed to accommodate future mechanisation to improve efficiency and reduce cost.

Fourthquarter2019fruit yield reached5.8 tonnes per hectare,leading to full year yield of 21.5 tonnes per hectare. Harvested fruits for full year 2019 totalled9.9million tonnes,which was processed into over 2.9 million tonnes of palm products. Subsequent to a bumper crop in 2018,palm product output moderated by four percentduring the year,also impacted by dry weather conditions and the replanting programme.

Upstream quarterly EBITDA[1] improved significantly to US$132million with the rebound in CPO prices towards end of the year,contributing to full yearEBITDA[1] of US$299million. Despite lower average CPO market prices and plantation output,2019 EBITDA margin remained robust at 23percent. The EBITDA of this segment includes the allocated net fair value gain on financial assets.

Palm,Lauricsand Others

Our downstream segment mostly consists of the processing and merchandising of palm and oilseed based products comprising bulk and branded products,oleo-chemicals and other vegetable oils,as well as production and distribution of other consumer products in China and Indonesia.

The palm,laurics and others segment generated revenue of US$6.4billion during 2019,ten percent lower than last year due to lower selling prices. However,segmental EBITDA[1] reached US$398million,more thandouble fromlast year and translating to a margin of 6.2percent. This performance was contributed primarily by biodiesel and destination sales. The EBITDA[1] also includes higher allocated net fair value gain on financial assets. With GAR's integrated business model,the contribution of downstream business to total consolidated EBITDA[1] expanded to 57percent from 32 percent last year.

[1]Earnings before tax,non-controlling interests,interest on borrowings,depreciation and amortisation,net gain or loss from changes in fair value of biological assets,foreign exchange gain or loss,and exceptional items.

[2] Net profitattributable to owners of the Company,excluding net effect of net gain or loss from changes in fair value of biological assets,depreciation of bearer plants,exceptional items,foreign exchange gainor loss,anddeferred tax expense.

[3] Net profit/lossattributable to owners of the Company.

[4] Earnings/lossper share is net profit or loss attributable to owners of the Company divided by weighted average number of shares.