FGV : 1Q FY2024 Quarterly Results Briefing

FGV HOLDINGS BERHAD

200701042133 (800165-P)

QUARTERLY REPORT

Condensed Consolidated Financial Statements For The Financial Period Ended 31 March 2024

1

FGV HOLDINGS BERHAD

Unaudited Condensed Consolidated Statement of Comprehensive Income for the Quarter ended 31 March 2024

Year to date ended 31 March

	Note
Revenue
Cost of sales
Gross profit
Other operating income
Selling and distribution costs
Administrative expenses
Impairment loss of financial assets (net)
Other operating expenses
Commodity (losses)/gains - net
Operating profit
Fair value changes in Land Lease Agreement ("LLA")
liability
Operating profit after LLA	15
Finance income
Finance costs
Share of results from associates
Share of results from joint ventures
Profit before zakat and taxation
Zakat
Taxation	16

Profit for the financial period

Profit/(loss) attributable to: - Owners of the Company

- Non-controlling interests

Other comprehensive income/(loss) Actuarial gains on defined benefit plan

Fair value changes of financial assets at fair value through other comprehensive income ("FVOCI")

Share of other comprehensive income/(loss) of joint ventures

Realisation of forex exchange reserve upon liquidation of a subsidiary

Currency translation differences Cash flow hedges

Other comprehensive income/(loss) for the financial period, net of tax

Total comprehensive income/(loss) for the financial period Total comprehensive income/(loss) attributable to:

• Owners of the Company
• Non-controllinginterests

Total comprehensive income/(loss) for the financial period

Earnings per share for profit attributable to the Owners of the Company:

2024

RM'000

4,544,572

(4,141,184)

403,388

28,344

(37,994)

(218,211)

(11,063)

(5,068)

(6,541)

152,855

(86,042)

66,813

13,379

(33,428)

(329)

3,231

49,666

(472)

(45,930)

3,264

(13,494)

16,758

3,264

137

125

1,708

-

39,157

16

41,143

44,407

26,299

18,108

44,407

	2023	%
	RM'000	+/(-)
	4,592,595	(1.0)
	(4,288,402)
	304,193	32.6
	42,580
	(37,376)
	(204,037)
	(375)
	(4,045)
	7,818
	108,758	40.5
	(32,155)
	76,603	(12.8)
	5,301
	(28,996)
	(393)
	7,347
	59,862	(17.0)
	(511)
	(51,308)
	8,043	(59.4)
	12,092	<100
	(4,049)
	8,043	(59.4)
	105
	3,191
	(167)
	970
	(18,090)
	25
	(13,966)
	(5,923)	>100
	4,186	>100
	(10,109)
	(5,923)	>100

Basic (sen)

(0.37)0.33

The unaudited Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying explanatory notes attached to this quarterly report and the audited financial statements for the financial year ended 31 December 2023.

2

FGV HOLDINGS BERHAD

Unaudited Condensed Consolidated Statement of Financial Position as at 31 March 2024

Non-current assets

Property, plant and equipment Right-of-use assets Investment properties Intangible assets

Interests in associates Interests in joint ventures Deposit and other receivables Deferred tax assets

Financial assets at fair value through profit or loss Financial assets through other comprehensive income

Biological assets Tax recoverable

Current assets

Inventories

Receivables Biological assets

Amount due from ultimate holding company Amounts due from joint ventures

Amount due from an associate Amounts due from related companies Tax recoverable

Financial assets at fair value through profit or loss Derivative financial assets

Contract assets

Deposits, cash and bank balances

Total assets

Equity

Share capital

Reserves

Equity attributable to owners of the Company

Non-controlling interests

Total equity

Note

19

19

19

18

Unaudited As at

31 March 2024

RM'000

7,955,142

2,170,206

64,192

889,459

57,731

597,039

157,708

241,219

5,397

164,204

4,998

53,287

12,360,582

1,964,945

1,474,716

69,401

39,075

83,595

38

120,438

43,827

97,229

389

9,535

1,848,992

5,752,180

18,112,762

7,029,889

(1,141,120)

5,888,769

1,614,394

7,503,163

Audited

As at

31 December 2023

RM'000

7,908,289

2,195,949

66,074

889,593

58,060

593,623

159,511

237,429

5,340

160,973

4,717

52,960

12,332,518

1,626,911

1,333,653

65,087

32,329

134,876

38

62,037

44,139

89,857

11,935

26,139

1,523,234

4,950,235

17,282,753

7,029,889

(1,057,974)

5,971,915

1,610,065

7,581,980

3

FGV HOLDINGS BERHAD

Unaudited Condensed Consolidated Statement of Financial Position as at 31 March 2024 (continued)

	Note
Non-current liabilities
Borrowings	17
LLA liability
Derivative financial liabilities	18
Provision for asset retirement
Provision for defined benefit plan
Lease liability
Deferred tax liabilities
Current liabilities
Payables
Amount due to ultimate holding company
Amounts due to joint ventures
Amounts due to associates
Amounts due to related companies
Borrowings	17
Derivative financial liabilities	18
Provision for asset retirement
Lease liability

LLA liability

Contract liabilities

Current tax liabilities

Dividend payable

Total liabilities

Total equity and liabilities

Net assets per share attributable to owners of the Company

Unaudited

As at

31 March

2024

RM'000

1,123,174

3,279,160

-

31,196

64,208

333,846

594,494

5,426,078

1,530,264

189,646

-

699

10,972

2,914,258

1,063

755

31,854

259,887

113,530

21,148

109,445

5,183,521

10,609,599

18,112,762

1.61

Audited

As at

31 December

2023

RM'000

1,163,357

3,257,842

11

32,674

62,072

351,888

591,523

5,459,367

1,296,536

276,663

506

331

5,950

2,269,445

403

734

30,637

255,971

91,661

12,569

-

4,241,406

9,700,773

17,282,753

1.64

The unaudited Condensed Consolidated Statement of Financial Position should be read in conjunction with the accompanying explanatory notes attached to this quarterly report and the audited financial statements for the financial year ended 31 December 2023.

4

FGV HOLDINGS BERHAD

Unaudited Condensed Consolidated Statement of Changes in Equity

	Foreign	Re-
Share	exchange	organisation
capital	reserve	reserve
RM'000	RM'000	RM'000

Year to date ended 31 March 2024

Other reserves RM'000

		Non-
Retained		controlling
earnings	Total	interests
RM'000	RM'000	RM'000

Total

Equity

RM'000

At 1 January 2024	7,029,889	116,727	(3,089,497)	21,928	1,892,868	5,971,915	1,610,065	7,581,980
(Loss)/profit for the financial period	-	-	-	-	(13,494)	(13,494)	16,758	3,264
Other comprehensive income/(loss) for the financial
period, net of tax:
Items that will not be reclassified to profit or loss
- actuarial gain on defined benefit plan	-	-	-	-	99	99	38	137
- fair value changes in financial assets at FVOCI	-	-	-	125	-	125	-	125
Items that will be subsequently reclassified to profit or
loss
- share of other comprehensive income of joint	-	1,708	-	-	-	1,708	-	1,708
ventures
- currency translation differences	-	37,853	-	-	-	37,853	1,304	39,157
- cash flow hedge reserves	-	-	-	8	-	8	8	16
			39,561		8	-	39,569	1,312	40,881
Total other comprehensive income/(loss) for the
financial period	-	39,561	-	133	(13,395)	26,299	18,108	44,407
Transactions with owners
Dividend paid to non-controlling interests of
subsidiaries	-	-	-	-	-	-	(13,779)	(13,779)
Dividend payable for the financial year ended
31 December 2023 (final)	-	-	-	-	(109,445)	(109,445)	-	(109,445)
Total transactions with owners	-	-	-	-	(109,445)	(109,445)	(13,779)	(123,224)
At 31 March 2024		7,029,889*	156,288	(3,089,497)	22,061	1,770,028	5,888,769	1,614,394	7,503,163

5

FGV HOLDINGS BERHAD

Unaudited Condensed Consolidated Statement of Changes in Equity (continued)

										*
	Foreign			Re-				Non-
Share	exchang	e	o	rganisation	Other	Retained		controlling	Total
capital	reserve			reserve	reserves	earnings	Total	interests	Equity
RM'000	RM'000			RM'000	RM'000	RM'000	RM'000	RM'000	RM'000

Year to date ended 31 March 2023

At 1 January 2023

Profit/(loss) for the financial period

Other comprehensive income/(loss) for the financial period, net of tax:

Items that will not be reclassified to profit or loss

• actuarial gain on defined benefit plan
• fair value changes in financial assets at FVOCI

Items that will be subsequently reclassified to profit or loss

• share of other comprehensive loss of joint ventures
• realisation of foreign exchange reserve upon liquidation of a subsidiary
• currency translation differences
• cash flow hedge reserves

Total other comprehensive (loss)/income for the financial period

7,029,889	68,156	(3,089,497)	29,495	2,193,614	6,231,657	1,653,028	7,884,685
-	-	-	-	12,092	12,092	(4,049)	8,043

-	-	-	-	105	105	-	105
-	-	-	3,248	-	3,248	(57)	3,191
-	(167)	-	-	-	(167)	-	(167)
-	970	-	-	-	970	-	970
-	(12,075)	-	-	-	(12,075)	(6,015)	(18,090)
-	-	-	13	-	13	12	25
-	(11,272)	-	13	-	(11,259)	(6,003)	(17,262)
-	(11,272)	-	3,261	12,127	4,186	(10,109)	(5,923)

Transactions with owners
Dividend payable for the financial year ended	-	-	-	-	(401,297)	(401,297)	-	(401,297)
31 December 2022 (final)
Liquidation of a subsidiary	-	-	-	-	-	-	(1,061)	(1,061)
Total transactions with owners	-	-	-	-	(401,297)	(401,297)	(1,061)	(402,358)
At 31 March 2023		7,029,889	56,884	(3,089,497)	32,756	1,804,514	5,834,546	1,641,858	7,476,404

Includes 1 Special Share of RM1.00 held by Minister of Finance (Incorporated).

The unaudited Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying explanatory notes attached to this quarterly report and the audited financial statements for the financial year ended 31 December 2023.

6

FGV HOLDINGS BERHAD

Unaudited Condensed Consolidated Statement of Cash Flows

Year to date ended

31 March

20242023

RM'000RM'000

CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the financial period

Adjustments for non-cash items

Operating profit before working capital changes

Changes in working capital

Cash generated from operations

Interest received

Taxation paid, net

Zakat paid

Retirement benefits paid

Net cash generated from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment Purchase of intangible asset

Proceeds from disposal of assets held for sale Proceeds from disposal of property, plant and equipment

Proceed from disposal of financial assets at fair value through profit or loss Net cash outflow from liquidation of subsidiary

Additions of financial assets at other comprehensive income Additions of financial assets at fair value through profit or loss (net) Dividend received from joint ventures

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Drawdown of borrowings

Repayment of borrowings

Repayment of LLA liability

Dividend paid to non-controlling interest

Finance costs paid

Payments of lease liabilities

Net cash generated from financing activities

Net increase in cash and cash equivalents

Effect of foreign exchange rate changes

Cash and cash equivalents at beginning of the financial period

Cash and cash equivalents at end of the financial period

3,264

345,740

349,004

(306,512)

42,492

13,379

(34,456)

(472)

(154)

20,789

(197,546)

(2,773)

-

2,067

853

-

(787)

(3,336)

1,755

(199,767)

2,659,509

(2,054,671)

(60,808)

(13,779)

(45,098)

(9,966)

475,187

296,209

29,549

1,523,234

1,848,992

8,043

278,410

286,453

146,230

432,683

5,301

(137,927)

(511)

(241)

299,305

(196,106)

(153)

9,000

229

59,391

(526)

-

(62,813)

-

(190,978)

1,956,179

(1,752,260)

(110,509)

-

(37,133)

(15,206)

41,071

149,398

(10,639)

1,397,106

1,535,865

The unaudited Condensed Consolidated Statement of Cash Flows should be read in conjunction with the accompanying explanatory notes attached to this quarterly report and the audited financial statements for the financial year ended 31 December 2023.

7

FGV HOLDINGS BERHAD

Explanatory Notes on the Quarterly Report - 31 March 2024

This interim financial information of FGV Holdings Berhad ('FGV' or 'Group') 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') No. 134 - Interim Financial Reporting.

The Unaudited Condensed Consolidated Interim Financial Information should be read in conjunction with FGV audited financial statements for the financial year ended 31 December 2023. These explanatory notes attached to the Unaudited Condensed Consolidated Interim Financial Information provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the financial year ended 31 December 2023.

1. Basis of Preparation

The financial statements of the Group have been prepared in accordance with the Malaysian Financial Reporting

Standards ("MFRS"), International Financial Reporting Standards ("IFRS") and the requirements of the Companies Act 2016 in Malaysia.

The accounting policies and presentation adopted for this Unaudited Condensed Consolidated Interim Financial Information are mainly consistent with those of the Group's audited financial statements for the financial year ended 31 December 2023.

1. Amendments to existing standards and other accounting pronouncements that are not expected to have any significant impact on the financial statements of the Group:
   Effective for annual periods beginning on or after 1 January 2024
2. • Amendments to MFRS 101 'Classification of liabilities as current or non-current' ('2020 amendments') and 'Non-current Liabilities with Covenants' ('2022 amendments')
   • Amendments to MFRS 16 'Lease Liability in a Sale and Leaseback'
   • Amendments to MFRS 107 and MFRS 7 'Supplier Finance Arrangements'
3. Amendments to existing standards that are not yet effective and have not been early adopted by the Group: Effective for annual periods beginning on or after 1 January 2025
4. • Amendments to MFRS 121 on 'Lack of Exchangeability'

The accounting pronouncements that are not yet effective are not expected to have any significant impact on the financial statements of the Group.

2. Seasonal or Cyclical Factors

Global sales of oils and fats products follow a similar pattern where sales increases ahead of festivities due to increased consumer demand. In addition, the harvest of fresh fruit bunches ("FFB") at palm oil plantations tends to increase in the second half of the financial year as a result of the rainfall pattern in Malaysia, which leads to a greater supply of CPO and PK during the second half of the financial year as FFB is immediately processed following its harvest.

Sales of refined oils and sugar products in Malaysia typically increase slightly during the months leading up to major holidays and festivals in Malaysia, especially Hari Raya and Chinese New Year, due to increased consumer demand for cooking oil and refined sugar.

8

FGV HOLDINGS BERHAD

Explanatory Notes on the Quarterly Report - 31 March 2024 (continued)

3. Unusual Items Affecting Assets, Liabilities, Equity, Net Income or Cash Flows

There were no other material or unusual items affecting FGV's assets, liabilities, equity, net income or cash flows during the financial period under review.

4. Material Changes in Estimates

There were no other material changes in the estimates of amounts reported in the prior interim period of the current financial year or the interim period of the previous financial year that have a material effect on the results for the current quarter under review.

1. Debt and Equity Securities

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

1. Dividends

No dividend has been paid during the quarter ended 31 March 2024.

1. Segment Information
   Operating segments are reported in a manner consistent with the internal management reporting provided to the chief operating decision maker ("CODM"), which is the Group Management Committee ("GMC").
   The GMC considers the business by product related activities. The reportable segments for the financial year ended
   31 December 2024 have been identified as follows:
2. • Plantation Division - Plantation estates and mill activities including cultivation, harvesting and production of fresh fruit bunches ("FFB") and processing of FFB into crude palm oil ("CPO") and palm kernel ("PK"), research and development activities, fertilisers processing, rubber processing and production, sale of planting materials and security.
   • Oils and Fats Division -Trading of CPO, refining of CPO, fractionation of refined bleached deodorised palm oil
     ("RBDPO") and Palm Olein ("PO"), crushing of PK, production of oleochemicals namely fatty acid and glycerine, processing and sales of biodiesel products, production of consumer bulk and packed products.
   • Sugar Division - Sugar refining, sales and marketing of refined sugar and molasses.
   • Logistics and Support Division - Bulking and transportation facilities and services, information technology and travel.

Corporate HQ, Others and Elimination mainly relates to the inclusion of investment holding companies within the Group and Group consolidation adjustments, which are not part of the operating segments.

The reportable segments and the entities included in the respective segments have been changed from the financial year ended 31 December 2023 due to the changes in the internal reporting structure to the CODM. Commencing January 2024, certain businesses activities and trading of CPO, which were previously part of Plantation Division, have now been included under Oils and Fats Division. Comparatives have been restated to conform to the revised reportable segments.

The GMC assesses the performance of the operating segments based on profit before zakat and taxation.

9

FGV HOLDINGS BERHAD

Explanatory Notes on the Quarterly Report - 31 March 2024 (continued)

7. Segment Information (continued)

The segment information provided to the Group's Chief Operating Decision Maker which is defined as Group Management Committee for the reportable segments of FGV for the financial year is as follows:

Plantation RM'000

Year to date ended 31 March 2024

Oils and Fats

RM'000

Sugar

RM'000

Logistics and

Support

RM'000

Corporate HQ,

Others

and Elimination

RM'000

Total

RM'000

Total segment revenue		1,332,393	3,885,935	957,004	194,754	79,280	6,449,366
Less: Inter-segment revenue		(1,002,380)	(692,077)	(50,096)	(88,048)	(72,193)	(1,904,794)
Revenue from external customers		330,013	3,193,858	906,908	106,706	7,087	4,544,572
Finance income		1,476	5,626	2,777	2,893	607	13,379
Finance costs		2,636	(9,404)	(11,387)	(1,490)	(13,783)	(33,428)
Depreciation and amortisation		(124,389)	(17,491)	(21,101)	(19,080)	(5,076)	(187,137)
Fair value changes in LLA liability		(86,042)	-	-	-	-	(86,042)
(Impairment of)/reversal of im
- financial assets		(13,849)	1,206	828	752	-	(11,063)
- non-financials assets		-	221	-	-	-	221
Share of results of joint ventures		-	3,231	-	-	-	3,231
Share of results of associates		328	-	-	-	(657)	(329)
(Loss)/profit before zakat and taxation
for the financial period		(62,139)	26,647	67,166	32,585	(14,593)	49,666
Disaggregation of the Group's revenue	Timing of revenue
is as follows:	recognition
Sales of Palm Oil Products	At a point in time	5,666	2,829,790	-	-	-	2,835,456
Sales of Refined Sugar	At a point in time	-	-	906,908	-	-	906,908
	At a point in
Others	time/over time	324,347	364,068	-	106,706	7,087	802,208
		330,013	3,193,858	906,908	106,706	7,087	4,544,572

10