FGV Holdings Berhad - Investor Relations

MAIN PARAMETERS AFFECTING LLA PROFIT SHARING
(LLA APPLIES TO ESTATES UNDER FGVPM ONLY)

	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021
Profit sharing (RM Mil)	154.37	79.84	80.64	33.76	50.07	71.31	8.29	2.52	66.90	215.04
CPO price (RM/MT)	2,843	2,333	2,410	2,210	2,560	2,792	2,282	2,021	2,675	3,671
FFB Production ('000 MT)	4,911	5,052	4,391	4,070	3,332	3,595	3,581	3,817	3,662	3,435
Yield/hectare	19.03	19.59	18.79	17.79	14.36	15.12	17.05	18.89	17.10	15.94
Estate cost (RM/MT)	253.53	257.45	254.95	241.97	285.11	275.72	309.23	251.53	305.43	308.41
Average age profile	17	17	16	16	13	15	15	14	15	14
Old tree (>21 years) (%)	54	55	53	48	45	41	35	30	32	29

Key Milestones

2012	Highest CPO price over a period of 7 years, at RM 2,843 per mt during IPO. Age profile with 54% of old trees, requiring replanting.
2013	CPO price dropped to RM 2,333 per mt a year.
2014	Yield levels were impacted by a long period of drought at the beginning of the year. Heavy rainfall caused severe flooding in Johor, Kelantan and Pahang in Q4.
2015	CPO price hit rock bottom, in 7 years. Manuring activities were delayed to curb escalating estate cost. Severe flooding in the early part of the year.
2016	Yield levels were affected due to the El-Nino phenomenon. Shortage of 10,000 workers. Voluntary withdrawal of the RSPO certification. Increase in minimum wage from RM900 to RM1,000.
2017	Operations started to recover from the impact of the El-Nino phenomenon. Impact of the increase in minimum wages. Labour shortage continued Received the RSPO certification for 8 mills at the end of 2017.
2018	Labour shortage persisted in the early part of the year, but improved in Q3. Transformation Plan implemented in Q3. Increase in minimum wages, from RM 1,000 to RM1,100.
2019	Lower CPO price Legalization of foreign workers

LLA Payments

Note:

* Decrease in LLA fixed payment starting 2016 was due to adjustment in hectarage leased

RM2.44 billion has been paid by FGV to Felda under the LLA fixed fee and profit sharing since IPO to 2019.
Overall, the profit sharing of LLA was in tandem with the movement of the CPO price.
However, in 2016, despite higher price, the profit sharing was lowered compared to 2013 and 2014, as production volume reduced significantly in 2016 due to El Nino phenomenon.