EmbRAcing Su STAinAbiliTy, PuRSuing gROwTh - Indofood Agri Resources

Embracing Sustainability, Pursuing Growth

Annual REPORT 2017

At a Glance

Indofood Agri Resources Ltd. (IndoAgri) is a vertically integrated agribusiness group with activities spanning the entire supply chain from research and development (R&D), seed breeding, oil palm cultivation and milling; as well as the production and marketing of cooking oil, shortening and margarine. Headquartered in Singapore and Jakarta, we are among the largest palm oil producers in Indonesia. Our branded cooking oil, shortening and margarine products together garner a leading share in the domestic market. As a diversified agribusiness group, IndoAgri also engages in the cultivation of sugar cane, rubber and other crops.

Housing facilities at oil palm plantation

Our Vision

To become a leading integrated agribusiness, and one of the world-class agricultural research and seed breeding companies.

Our ValueS

With discipline as the basis of our way of life; we conduct our business with integrity; we treat our stakeholders with respect; and together we unite to strive for excellence and continuous innovation.

Our Mission

To be a low-cost producer, through high yields and cost-effective and efficient operations.

To continuously improve our people, processes and technology.

Exceed our customers' expectations, whilst ensuring the highest standards of quality.

Recognise our role as responsible and engaged corporate citizens in all our business operations, including sustainable environmental and social practices.

To continuously increase stakeholders' value.

Oil palm seeds breeding

Contents

Group Overview At a Glance Vision, Mission and Values Milestones Corporate Structure Geographical Presence Chairman's Statement CEO's Statement

Financials

Directors' Statement

61

1 Independent Auditor's Report

63

2 Consolidated Statement of Comprehensive Income 67

4 Balance Sheets

68

6 Consolidated Statement of Changes in Equity

70

10 Consolidated Cash Flow Statement

72

11 Notes to the Financial Statements

74

Operation and Financial Review

Other Information

Group Performance Review

14 Interested Person Transactions

151

Plantation Review

20 Plantation Locations

152

Edible Oils & Fats Review

32 Statistics of Shareholdings

154

Notice of Annual General Meeting

156

Sustainability & Governance

Proxy Form

Sustainability at IndoAgri

36

Board of Directors

40

Corporate Information

43

Corporate Governance

45

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INDOFOOD AGRI RESOURCES LTD ANNUAL REPORT 2017

M i l e s A Decade of Transformation

2007

? Completed a reverse takeover

and listed on the SGX-ST ?

Acquired plantation land in South Sumatra and Kalimantan

? Acquired a 58.8% stake in PT PP London Sumatra Indonesia Tbk (Lonsum)

? Enrolled as a Roundtable on Sustainable Palm Oil (RSPO) member

2009

? Acquired plantation land

in South Sumatra ?

Achieved RSPO-certified Crude Palm Oil (CPO) of

170,000 tonnes

2011

? Listed PT SIMP on the IDX

? Increased RSPO-certified

CPO to 195,000 tonnes

2008

? Diversified into sugar business via 60% stake in PT Laju Perdana Indah

(PT LPI) ?

Acquired plantation land in South Sumatra and Central Kalimantan

2010

2012

? Acquired a 26.4% stake in Heliae, a development-stage algae technology solutions

company ?

Increased RSPO-certified CPO to 248,000 tonnes

? Divested an 8% stake in Lonsum,

of which 3.1% was sold to PT Salim Ivomas Pratama Tbk

(PT SIMP)

02

INDOFOOD AGRI RESOURCES LTD ANNUAL REPORT 2017

t

o

2013

nes

2015

? Increased RSPO- and ISPOcertified CPO to 377,000 tonnes and 180,000 tonnes, respectively

2017

? Acquired a 79.7% interest in PT Mentari Pertiwi Makmur (PT MPM), an industrial timber

plantation company ?

Acquired a 50% stake in Companhia Mineira de A??car e ?lcool Participa??es (CMAA), a sugar, ethanol and co-generation

company in Brazil ?

Formed a 30:70 JV, FP Natural Resources Limited (FPNRL), to invest 34% in Roxas Holdings Inc. (RHI), an integrated sugar business

in the Philippines ?

Achieved Indonesia Sustainable Palm Oil (ISPO)-certified CPO

of 45,000 tonnes

2014

? Formed a 40:60 JV, PT Prima Sarana Mustika (PT PSM), engaging in road construction and the leasing of heavy equipment

? Expanded sugar business via the acquisition of PT Madusari

Lampung Indah (PT MLI) ?

Increased RSPO-certified CPO to 332,000 tonnes

2016

? Acquired PT Pasir Luhur, a tea plantation company

? Increased RSPO- and ISPOcertified CPO to 388,000 tonnes and 255,000 tonnes, respectively

?

Our 10th

Anniversary

? Formed a 49:51 JV, PT Indoagri Daitocacao, to manufacture and

market industrial chocolate products in Indonesia. ?

Increased RSPO- and ISPOcertified CPO to 447,000 tonnes and

389,000 tonnes, respectively

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INDOFOOD AGRI RESOURCES LTD ANNUAL REPORT 2017

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