Golden Agri-Resources delivers a robust performance in the first half of 2022 amidst industry volatility

EBITDA[1] for the first half of 2022 grew to US$807 million,whilst net profit more than doubled to US$390 million

Well sustained margins achieved across upstream and downstream business segments

The Board declares interim dividend of 0.800 Singapore cents per share

FINANCIALHIGHLIGHTS

US$'million

First halfended

Change

30June2022

(1H2022)

30June2021

(1H2021)

Revenue

5,490

4,454

23%

GrossProfit

1,369

1,061

29%

EBITDA[1]

807

523

54%

Underlying Profit[2]

407

246

65%

Foreign Exchange Gain/(Loss)[3]

41

-8

n.m

Deferred Tax Income/(Expense)[3]

1

-27

n.m

Net Profit[4]

390

153

154%

[1]Earningsbeforetax,non-controllinginterests,interestonborrowings,depreciationandamortisation,netgainorlossfromchangesin fair value ofbiologicalassets,foreign exchangegainorloss,and exceptionalitems

[2] Net profit attributable to owners of the Company,excluding net effect of net gain or loss from changes in fair value of biologicalassets,depreciationof bearerplants,foreignexchange gainorloss,anddeferred tax incomeorexpense

[3] Netoftaxand/ornon-controllinginterests

[4] Attributable to owners of theCompany

SINGAPORE,Aug. 12,2022 -- Golden Agri-Resources Ltd ("GAR" or the "Company") continued to perform robustly during the first semester of 2022,delivering a strong set ofresults amidst increased volatility in the industry. EBITDA reached US$807 million,a 54percent increase year on year. Underlying profit and net profit were also strong at US$407million andUS$390 million,respectively.

Thisperformancewasachievedonthebackofa23percent year-on-yearincreaseinrevenueto almost US$5.5 billion,mainly attributable to the continued appreciation of CPO marketprices. Upstream and downstream businesses contributed to the excellent results in the firsthalfof 2022.

On the results,Mr Franky O. Widjaja,GAR Chairman and Chief Executive Officer,commented: "The Board is satisfied with GAR's performance in the first six months of 2022. Our integrated business model has helped GAR to weather the industry volatility during the period. In addition,with our broad product portfolio,strategic logistics assets and capability,and a large pool of destination customers,GAR has effectively distributed products worldwide.

With its confidence towards the Company's performance,the Board declares the distributionofaninterim dividendof0.800Singaporecentspershare."

Mr Widjaja added: "Solid fundamentals of global vegetable oil supply and demand persist.Weather conditions in some oilseed-producing countries are recovering. However,palm oilhas experienced slow production growth,while global demand,on the other hand,continuestobe strong."

SEGMENTALPERFORMANCE

Plantationsand palm oilmills

Asof30June2022,GAR'splanted areastoodat538thousand hectares,ofwhich21percent is owned by plasma smallholders. From 508 thousand hectares of its mature area,fruitharvested during the first half of 2022 totalled 4.8 million tonnes,a year-on-year decline ofeight percent as affected by a shift in production seasonality. Palm product output declinedaccordingly to1.5 milliontonnes duringtheperiod.

CPOpriceappreciationoffsetlowerplantationoutput,withupstream EBITDAreachingUS$520 millionforthefirsthalf.EBITDAmargin expandedto42percentfrom35percent inthesameperiod lastyear.

Palm,laurics andothers

Thedownstreambusiness primarilyconsistsoftheprocessingandmerchandisingofpalmandoilseed-based products comprising bulk and branded products,oleo-chemicals and othervegetable oils,aswellasproductionand distributionofother consumerproducts.

The palm,laurics and others segment generated around US$5.5 billion in revenue during thefirst half of 2022,23 percent higher than last year. The increase primarily came from higheraverage selling prices,compensating for the decrease in sales volume due to the temporaryexport ban implemented in May 2022. As a result,the segmental EBITDA grew 82 percent toUS$288 million,achieving a record first half for this business. In addition,through optimalutilisation of our integrated business model,downstream delivered a higher margin of 5.3percent from 3.6 percentlastyear.

The latest measures taken by the Indonesian Government in July 2022 have encouraged the export of palm oil products to reduce Indonesian stock levels. GAR supports the government's policy in safeguarding the country's domestic requirement of cooking oil.

AboutGoldenAgri-ResourcesLtd(GAR)

GARisaleadingpalmoilplantationcompanyinIndonesia withatotalplantedareaof537,720 hectares (including plasma smallholders) as of 30 June 2022. It has integrated operationsfocused onthetechnology-drivenproductionanddistributionofanextensive portfolioofpalm- based products.

Founded in 1996,GAR was listed on the Singapore Exchange in 1999 and has a marketcapitalisation of US$2.3 billion as of 30 June 2022. FlamboInternationalLimited,aninvestment company,is GAR's largest shareholder,with a 50.56 percent stake. In addition,GAR has several subsidiaries,including PT SMART Tbk,which was listed on the IndonesiaStock Exchange in1992.

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 oil palm trees; the 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. GAR also has complementary businesses such as soybean-based products in China,sunflower-based products in India,and sugar businesses.