Sime Darby Plantation : 1Q FY2024 Quarterly Report

QUARTERLY REPORT

On the consolidated results for the first quarter ended 31 March 2024

The Directors are pleased to announce the following:
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
Amounts in RM million unless otherwise stated
			Quarter ended
			31 March		%
	Note	2024			2023	+/(-)
Revenue	A8, A9	4,342			4,069	7
Operating expenses			(3,948)			(3,818)
Other operating income			44			91
Other losses			(48)			(41)
Operating profit	B5, A9	390			301	30
Share of results of joint ventures			(14)			2
Share of results of associates			-	*		-	*
Profit before interest and tax	A9	376			303	24
Finance income			7			4
Finance costs	B5	(37)			(52)
Profit before tax			346			255	36
Tax expense	B6	(93)			(147)
Profit for the financial period			253			108	>100
Profit for the financial period attributable to:
- equity holders of the Company			211			69	>100
- Perpetual Sukuk			31			31
- non-controlling interests			11			8
			253			108	>100
Basic earnings per share attributable to
equity holders of the Company:
Basic (sen)	B12	3.1			1.0	>100
* Less than 1 million

The unaudited condensed consolidated statement of profit or loss should be read in conjunction with the accompanying explanatory notes and the audited financial statements for the financial year ended 31 December 2023.

1

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Amounts in RM million unless otherwise stated

	Quarter ended
	31 March		%
	2024			2023	+/(-)
Profit for the financial period	253			108	>100
Other comprehensive income/(loss):
Items that will be reclassified subsequently to profit or loss:
Currency translation differences gains:
- subsidiaries	160			238
- joint ventures and associates	3			3
Cash flow hedge
- changes in fair value	(51)			46
- transfers to profit or loss	(2)			(16)
Tax credit/(expense) relating to components
of other comprehensive income/(loss)	13			(7)
	123			264
Items that will be not reclassified subsequently
to profit or loss:
Actuarial (loss)/gain on defined benefit pension plans	-	*		9
Investments at fair value through other
comprehensive income ("FVOCI"):
- changes in fair value	-	*		‒	*
Share of other comprehensive (loss)/income of joint
ventures	-			‒	*
Tax credit/(expense) relating to components
of other comprehensive income/(loss)	-	*		(2)
	‒	*		7
Total other comprehensive income
for the financial period	123			271
Total comprehensive income
for the financial period	376			379
Total comprehensive income
for the financial period attributable to:
- equity holders of the Company	335			322	4
- Perpetual Sukuk	31			31	-
- non-controlling interests	10			26	(62)
Total	376			379	(1)

* Less than 1 million

The unaudited condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying explanatory notes and the audited financial statements for the financial year ended 31 December 2023.

2

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Amounts in RM million unless otherwise stated

		Unaudited		Audited
		As at	As at
		31 March	31 December
	Note	2024		2023
Non-current assets
Property, plant and equipment		19,373		19,145
Investment properties		8		8
Right-of-use assets		2,060		2,061
Joint ventures		407		416
Associates		50		52
Intangible assets		3,129		3,055
Investments at fair value through other comprehensive income ("FVOCI")		23		23
Deferred tax assets		467		443
Tax recoverable		215		251
Trade and other receivables		60		58
		25,792		25,512
Current assets
Inventories		2,808		2,664
Biological assets		186		175
Trade and other receivables		2,537		2,207
Tax recoverable		302		298
Amounts due from related parties		‒ *	‒ *
Derivatives	B9	14		34
Bank balances, deposits and cash		715		830
		6,562		6,208
Non-current assets held for sale (1)
	164		166
Total assets	A9	32,518		31,886
Equity
Share capital		1,634		1,634
Reserves		16,025		16,108
Attributable to equity holders of the Company		17,659		17,742
Perpetual Sukuk		2,200		2,231
Non-controlling interests		442		433
Total equity		20,301		20,406

3

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) Amounts in RM million unless otherwise stated

		Unaudited		Audited
		As at	As at
		31 March	31 December
	Note	2024		2023
Non-current liabilities
Retirement benefits		194		191
Deferred income		‒ *	‒ *
Deferred tax liabilities		2,680		2,654
Borrowings	B8	3,543		3,582
Lease liabilities		188		194
Trade and other payables		57		57
		6,662		6,678
Current liabilities
Trade and other payables		2,416		2,384
Contract liabilities		49		24
Amounts due to related parties		11		14
Retirement benefits		21		20
Lease liabilities		27		26
Tax payable		233		208
Derivatives	B9	64		19
Borrowings	B8	2,302		1,701
Dividend payable		418		394
		5,541		4,790
Liabilities directly associated with non-current assets held for sale	(2)
14		12
Total liabilities		12,217		11,480
Total equity and liabilities		32,518		31,886
Net assets per share attributable to equity holders
of the Company (RM)		2.55		2.57

Note:

1. Non-currentassets held for sale Non-currentassets held for sale

- property, plant and equipment	15		15
Disposal group held for sale
- property, plant and equipment	113		112
- right of use assets	1		1
- tax assets	17		17
- receivables	8		7
- bank balances	‒ *	‒ *
- other assets	10		14
	164		166

1. Liabilities directly associated with non-current assets held for sale

Disposal group held for sale
- payables	9		7
- retirement benefits	5		5
- other liabilities	‒ *	‒ *
	14		12
* Less than 1 million

The unaudited condensed consolidated statement of financial position should be read in conjunction with the accompanying explanatory notes and the audited financial statements for the financial year ended 31 December 2023.

4

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Amounts in RM million unless otherwise stated

					Attributable to equity holders of the Company
					Investments					Non-
	Share	Capital	Hedging	Merger	at FVOCI	Exchange	Retained		Perpetual	controlling	Total
Period ended 31 March 2024	capital	reserve	reserve	reserve	reserve	reserve	profits	Total	Sukuk	interests	equity
At 1 January 2024	1,634	9	8	(18)	21	1,284	14,804	17,742	2,231	433	20,406
Profit for the financial period	‒	‒	‒	‒	‒	‒	211	211	31	11	253
Other comprehensive (loss)/income
for the financial period	‒	‒	(37)	‒	‒	161	‒	124	‒	(1)	123
Total comprehensive (loss)/income
for the financial period	‒	‒	(37)	‒	‒	161	211	335	31	10	376
Transactions with equity holders:
Dividends	‒	‒	‒	‒	‒	‒	(418)	(418)	‒	(1)	(419)
Distribution to Perpetual Sukuk holders	‒	‒	‒	‒	‒	‒	‒	‒	(62)	‒	(62)
At 31 March 2024	1,634	9	(29)	(18)	21	1,445	14,597	17,659	2,200	442	20,301
					Attributable to equity holders of the Company
					Investments					Non-
	Share	Capital	Hedging	Merger	at FVOCI	Exchange	Retained		Perpetual	controlling	Total
Period ended 31 March 2023	capital	reserve	reserve	reserve	reserve	reserve	profits	Total	Sukuk	interests	equity
At 1 January 2023	1,634	9	10	(18)	20	716	13,996	16,367	2,231	418	19,016
Profit for the financial period	‒	‒	‒	‒	‒	‒	69	69	31	8	108
Other comprehensive income
for the financial period	‒	‒	23	‒	‒	223	7	253	‒	18	271
Total comprehensive income
for the financial period	‒	‒	23	‒	‒	223	76	322	31	26	379
Transactions with equity holders:
Dividends	‒	‒	‒	‒	‒	‒	(418)	(418)	‒	(2)	(420)
Distribution to Perpetual Sukuk holders	‒	‒	‒	‒	‒	‒	‒	‒	(62)	‒	(62)
At 31 March 2023	1,634	9	33	(18)	20	939	13,654	16,271	2,200	442	18,913

The unaudited condensed consolidated statement of changes in equity should be read in conjunction with the accompanying explanatory notes and the audited financial statements for the financial year ended 31 December 2023.

5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

Amounts in RM million unless otherwise stated

Period ended

31 March

Note 2024 2023

Cash flows from operating activities

Profit for the financial period
Adjustments for:
Share of results of joint ventures and associates
Finance income
Finance costs
Gain on disposal of:
- property, plant and equipment	B5
Depreciation and amortisation	B5
Unrealised fair value (gains)/losses
- commodities contracts	B5
- forward foreign exchange contracts	B5
Unrealised foreign exchange losses/(gains)	B5
Tax expense	B6
Fair value changes on biological assets
Retirement benefits
Net of impairment/(reversal) of:
- property, plant and equipment	B5
- advances for plasma plantation projects	B5
- trade and other receivables	B5
Write off of:
- inventories	B5
- property, plant and equipment	B5
- intangible assets	B5
(Write back)/ write-down of inventories	B5
Dividend income from FVOCI

Changes in working capital:

Inventories

Trade and other receivables

Trade and other payables

Intercompany and related party balances

Cash generated from operations

Tax paid

Retirement benefits paid

Net cash generated from operating activities

Cash flows from investing activities

Finance income received

Purchase of:

• property, plant and equipment
• intangibles assets

Advances for plasma plantation projects

Proceeds from sale of:

• property, plant and equipment
  Dividend received from:
• FVOCI

Net cash used in investing activities

253 108

14 (2)

1. (4)

37 52

1. (8)

367 345

20 33

1. (2)

18 (23)

93 147

1. 24

10 24

10 6

1 1

1. (1)

‒ *

‒

*

4 3

• ‒ *

1. 4

1. ‒

775 707

1. (193)

1. 414

51 63

1. (2)

394 989

1. (191)

1. (7)

331 791

7 4

1. (377)

1. (1)

‒ *

‒

*

16 9

1 ‒

1. (365)

6

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) Amounts in RM million unless otherwise stated

	Period ended
	31 March
Note	2024			2023
Cash flows from financing activities
Distribution to Perpetual Sukuk holders	(62)			(62)
Finance costs paid	(72)			(77)
Loans raised	1,412			1,726
Loan repayments	(913)			(1,749)
Repayment of lease liabilities	(9)			(7)
Dividends paid to shareholders	(394)			‒
Dividends paid to non-controlling interests of subsidiaries	(1)			(2)
Net cash used in financing activities	(39)			(171)
Net changes in cash and cash equivalents during the financial period	(118)			255
Foreign exchange difference	3			(6)
Cash and cash equivalents at beginning of the financial period	830			635
Cash and cash equivalents at end of the financial period	715			884

* Less than 1 million

The unaudited condensed consolidated statement of cash flows should be read in conjunction with the accompanying explanatory notes and the audited financial statements for the financial year ended 31 December 2023.

7

EXPLANATORY NOTES ON THE QUARTERLY REPORT - 31 MARCH 2024

Amounts in RM million unless otherwise stated

A. EXPLANATORY NOTES PURSUANT TO MFRS 134

A1. Basis of preparation

This interim financial report is prepared in accordance with the requirements of paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad and complies with the requirements of the Malaysian Financial Reporting Standard ("MFRS") 134 "Interim Financial Reporting" and other MFRSs issued by the Malaysian Accounting Standards Board ("MASB"). The interim financial report is unaudited and should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2023.

A2. Accounting policies

The accounting policies and presentation adopted for this interim financial report are consistent with those adopted for the audited consolidated financial statements for the financial year ended 31 December 2023 except as described below.

1. Accounting pronouncements that are effective and have been adopted in preparing these financial statements :
2. 1. Amendments that are effective on or after 1 January 2024

• Amendments to MFRS 101 on "Classification of Liabilities as Current or Non-current" ('2020 amendments') and "Non-current Liabilities with Covenants" ('2022 amendments')
• Amendments to MFRS 16 on Lease Liability in a Sale and Leaseback
• Amendments to MFRS 107 and MFRS 7 on Supplier Finance Arrangements

The adoption of these amendments does not have any significant impact on the current period or any prior periods and is not likely to affect future periods.

1. Accounting pronouncements that are not yet effective and have not been early adopted in preparing these financial statements:
2. 1. Amendments that are effective on or after 1 January 2025

• Amendments to MFRS 121 on The Effects of Changes in Foreign Exchange Rates - Lack of Exchangeability

The amendments listed above are not expected to have any significant effect on the financial statements.

A3. Seasonal and cyclical factors

The Group's operations are not materially affected by seasonal or cyclical factors except for the fresh fruit bunch production which may be affected by the vagaries of weather and cropping patterns.

A4. Unusual items affecting assets, liabilities, equity, net income or cash flows

Except as disclosed in Notes B1 and B2, there were no material unusual items affecting the Group's assets, liabilities, equity, net income or cash flows during the quarter under review.

A5. Material changes in estimates

There were no material effects from estimates made in prior periods or previous year.

A6. Debt and equity securities

There were no issuances, cancellations, repurchases, resale and repayments of debt and equity securities during the quarter under review.

8

EXPLANATORY NOTES ON THE QUARTERLY REPORT - 31 MARCH 2024

Amounts in RM million unless otherwise stated

1. EXPLANATORY NOTES PURSUANT TO MFRS 134 (CONTINUED)
   A7. Dividends paid
   Dividends paid during the quarter ended 31 March 2024 are as follows:

Quarter ended 31 March

2024

In respect of financial year ended 31 December 2023 :

- Special dividend of 5.70 sen per share, paid in cash on 24 January 2024

A8. Revenue

The Group derived the following types of revenue:
	Note
Revenue from contracts with customers	A8(a)
Revenue from other sources	A8(b)
Total revenue

1. Disaggregation of revenue from contracts with customers Upstream
2. • Malaysia
   • Indonesia
   • Papua New Guinea and Solomon Islands ("PNG/SI")

Downstream

Other operations

Sales of palm based products, other refined edible oils, rubber, sugar, beef and other agricultural products

Freight services Tolling services

Timing of revenue recognition

1. • at point in time
   • over time
2. Revenue from other sources
   Dividend (gross) received/receivable from investments Rental income

394

Quarter ended

31 March

20242023

4,334 4,062

87

4,342 4,069

166313

206294

6149

3,869 3,361

3245

4,334 4,062

4,276 3,976

4184

172

4,334 4,062

4,276 3,976

5886

4,334 4,062

1. ‒

1. 7

87

1. Revenue expected to be recognised in relation to unsatisfied performance obligations
   The following table shows the revenue expected to be recognised in the future relating to performance obligations that were unsatisfied (or partially unsatisfied) as at 31 March 2024:

Expected timing of recognitionDuring the quarter ending 30 June 2024

Freight income	49

9

EXPLANATORY NOTES ON THE QUARTERLY REPORT - 31 MARCH 2024

Amounts in RM million unless otherwise stated

1. EXPLANATORY NOTES PURSUANT TO MFRS 134 (CONTINUED)
   A9. Segment information

							Inter-
	Upstream	Upstream	Upstream		Other		segment
	Malaysia	Indonesia	PNG/SI	Downstream	operations		elimination	Total
Period ended 31 March 2024
Segment revenue:
External sales	173	206	61	3,870	32		‒	4,342
Inter-segment sales	751	253	593	102	124		(1,823)	‒
Total revenue	924	459	654	3,972	156		(1,823)	4,342
Segment results:
Operating profit:
- recurring activities	118	84	63	135	‒	*	‒	400
- non-recurring transactions	(10)	‒	‒	‒	‒		‒	(10)
Share of results of joint ventures and associates	‒	‒	‒	(14)	‒	*	‒	(14)
Profit before interest and tax	108	84	63	121	‒	*	‒	376
							Inter-
	Upstream	Upstream	Upstream		Other		segment
	Malaysia	Indonesia	PNG/SI	Downstream	operations		elimination	Total
Period ended 31 March 2023
Segment revenue:
External sales	319	294	49	3,362	45		‒	4,069
Inter-segment sales	450	303	953	97	185		(1,988)	‒
Total revenue	769	597	1,002	3,459	230		(1,988)	4,069
Segment results:
Operating profit:
- recurring activities	(21)	105	136	66	15		‒	301
- non-recurring transactions	‒	‒	‒	‒	‒		‒	‒
Share of results of joint ventures and associates	‒	‒	‒	2	‒	*	‒	2
Profit before interest and tax	(21)	105	136	68	15		‒	303
* Less than 1 million

10