Golden Agri-Resources achieved a record first quarter performance in 2022

EBITDA in the first quarter of 2022increased by 61 percent year-on-year to US$372 million,while net profit was excellent at US$188 million

Continued strength in CPO market prices more than compensated for lower palm product output

SINGAPORE,May 12,2022 -- Golden Agri-Resources Ltd ("GAR" or the "Company") got off to a good start in 2022,achieving a record first quarter performance. EBITDA reached US$372 million,a 61 percent increase year on year. Underlying profit and net profit also realised robust results of US$173million and US$188 million,respectively.

FINANCIAL HIGHLIGHTS

US$ million

Three monthsended

31 Mar 2022

(1Q2022)

31 Mar 2021

(1Q2021)

Change

Revenue

2,700

2,048

32%

Gross Profit

673

485

39%

EBITDA1

372

232

61%

Underlying Profit2

173

99

74%

Foreign Exchange Gain/(Loss)3

26

-15

n.m

Deferred Tax Income/(Expense)

3

-14

n.m

Net Profit4

188

41

361%

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

2 Net profit attributable 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,and deferred tax income or expense

3 Net of tax and/or non-controlling interests

4 Attributable to owners of the Company

This strong performance was achieved on the back of a 32 percent yearonyear increase in revenue to over US$2.7 billion,primarily attributable to the continued appreciation of CPO market prices.Both the upstream and downstream businesses contributed to the excellent results. Upstream,the strengthening of CPO prices more than offset the decrease in plantation output. Our downstream business also delivered a healthy margin this quarter.

On the outlook,Mr Franky O. Widjaja,GAR Chairman and Chief Executive Officer, commented: "Global oilseed production growth is predicted to remain limited. Palm oil production is estimated to grow at a single digit pace this year. Adverse weather conditions in oilseed producing countries has brought vegetable oil prices to historical highs. Many countries are relaxing COVID-19 restrictions resulting in increased spending which will support the global vegetable oil demand amid the high price situation."

Mr Widjaja added: "The Indonesian Government has implemented a temporary export ban to tackle the food inflation in the country. GAR fully supports the Government's policy to ensure an adequate domestic supply of cooking oil at affordable prices. We believe that our well-established vertically integrated business model provides us with the flexibility to adjust our operations to adapt with the evolving industry changes. However,the current uncertainties remain due to the new variants of COVID-19 and global supply chain issues which may affect our operations."

As of 31 March 2022,GAR's planted area stood at 537 thousand hectares,comprising 511 thousand hectares of mature estates and 26thousand hectares of immature estates. Fruit yield for the first quarter of 2022decreased by 21 percent to 4.2 tonnes per hectare,from the first quarter of 2021's high base of production that experienced a rebound after the El Niño. The production was also impacted by high rainfalls and old estates being prepared for replanting.

The sales volume of downstream business in the current quarter declined slightly year-on-year,affected by lower feedstock availability in the market.

GAR continues to pursueits goal of supply chain transformation. As of the first quarter of 2022,GAR hasachieved 95 percent Traceability to Plantation (TTP) for our palm supply chain.Its supply chain is not static,and there is always some turnover every year,making it challenging to achieve 100 percent TTP. New suppliers joining GAR's supply chain require time to build capacity to implement TTP. GAR isengaging actively with these and the very few suppliers who have yet to complete their TTP and have devised action plans to support them to achieve TTP. GAR isalso exploring ways to build a database of TTP-compliant suppliers for future sourcing.

GAR isalso registering smallholders under the Ksatria Sawit programme,which aims to accelerate TTP. This initiative reaches out to areas where many ofits supplier mills buy from smallholders and traces their agents and farmers. Around 120,000 farmers have been registered under the programme.

Since GARhas reached this advanced stage of TTP,it isfocusing its resources on the next phase of supply chain transformation,which is to deepenits engagement and design more targeted programmes to supportits suppliers in their sustainability journey.

About Golden Agri-Resources Ltd (GAR)

GAR is one of the leading palm oil plantation companies with a total planted area of 536,907hectares (including plasma smallholders) as at 31March2022,located in Indonesia. It has integrated operations focused on the technology-driven production and distribution of an extensive portfolio of palm-based products.

Founded in 1996,GAR was listed on the Singapore Exchange in 1999 and has a market capitalisation of US$2.9 billion as at 31March2022. Flambo International Limited,an investment company,is currently GAR's largest shareholder,with a 50.56 percent stake. GAR has several subsidiaries,including PT SMART Tbk which was listed on the Indonesia Stock Exchange in 1992.

As an integrated agribusiness,GAR delivers an efficient end-to-end supply chain,from responsible production to global delivery. In Indonesia,its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (CPO) and palm kernel; refining CPO into value-added products such as cooking oil,margarine,shortening,biodiesel and oleo-chemicals; as well as merchandising palm products globally. GAR's products are delivered to a diversified customer base in approximately 100 countries through its global distribution network with shipping and logistics capabilities,destination marketing,on-shore refining and ex-tank operations in many countries. GAR also has complementary businesses such as soybean-based products in China,sunflower-based products in India,as well as sugar businesses.