Kuala Lumpur, 28 December 2010 - Sime Darby Plantation Sdn Bhd is collaborating with Mitsui Engineering and Shipbuilding Co. Ltd. of Japan (MES) to construct and operate a bioethanol demonstration plant which will convert oil palm empty fruit bunches (EFB) into bioethanol.

This bioethanol demonstration plant will use EFB as the primary feedstock. EFB, in general, is regarded as an excellent feedstock for the production of biofuels due to its abundant supply and year-round availability.

The collaboration is being undertaken by Sime Darby Research Sdn Bhd (SDR), the research and development arm of Sime Darby Plantation. The joint-venture plant will be built next to Sime Darby Plantation’s Tennamaram palm oil mill at Bestari Jaya (formerly Batang Berjuntai), Selangor.

This is to take advantage of the supply of EFBs from the estate, and the availability of other utilities. It will have a processing capacity of 1.25 metric tonnes EFB per day, using the hydrothermal pre-treatment and enzymatic hydrolysis technology. The plant will be utilized to collect operational data and confirm technical feasibility of commercial-scale production of bioethanol from EFB.

Mr Franki Anthony Dass, the Executive VP of Sime Darby Plantation, said the plant showcases Sime Darby Plantation’s commitment to sustainability.

“We continue to research various ways to add value to all the by-products of the humble palm tree. The EFB can now move further up the value chain as a source of biofuel. Successful commercialization will also help in managing solid waste produced in oil palm estates,” said Mr Anthony.

Production of biofuel from non-food feedstock such as EFB and other oil palm biomass will help to partially meet the global fuel demand without jeopardising food supply.

In addition, environmentally friendly biofuels from renewable sources will reduce the effects of global warming arising from use of fossil fuels. This project is yet another sustainable initiative undertaken by Sime Darby in line with its tagline of “Developing Sustainable Futures”.

Kuala Lumpur, 7 March 2011 - Sime Darby Plantation has identified the Languedoc-Roussillon region in France as a potential location to establish its multi-feedstock vegetable oil processing plant as part of a strategy to expand into key areas around the world.

The proposed plant, to be located in the coastal town of Port-la-Nouvelle, will help to meet the growing demand for edible oils in Southern Europe and North Africa.

The choice of Languedoc-Roussillon itself is strategic; the region, with a population of 2.4 million, has a vibrant agri-food industry. It has a significant number of growers of cereal crops such as sunflower who will benefit directly from the establishment of the processing plant.

The potential investment in the Port-la-Nouvelle plant forms part of Sime Darby Plantation’s plan to become an integrated player in the palm oil industry, according to Sime Darby Bhd President and Group Chief Executive Dato’ Mohd Bakke Salleh. “It will capitalize on the strategic location of our upstream operations even as it complements our refinery operations in Netherlands” Mohd Bakke added.

Sime Darby Plantation is the plantation and agri-business subsidiary of Sime Darby Bhd, the world’s largest listed producer of palm oil. More than one-third of Sime Darby Plantation’s production is certified sustainable palm oil (CSPO) under guidelines established by the Roundtable on Sustainable Palm Oil (RSPO). The company aims to have all its production from Malaysia and Indonesia certified by the RSPO by the end of 2011.

Palm-based feedstock for the plant in Port-la-Nouvelle will eventually be sourced primarily from Sime Darby Plantation’s operations in Liberia. In the shorter term, CSPO will be obtained from Sime Darby Plantation’s other internal sources while other vegetable oils will be sourced externally, potentially from farmers in the region.

The Group now has a refinery in Zwijndrecht, Netherlands, owned by its European subsidiary Sime Darby Unimills BV. The refinery sources CSPO from the Group’s estates in Sabah, Malaysia, and other feedstock from external sources.

This proposed investment in the Languedoc-Roussillon Region will pave the way for Sime Darby Plantation to tap into an area of potential growth in Europe and North Africa while presenting an unprecedented opportunity for economic development and new employment.

“While we continue to assess other potential locations in Europe as well as other parts of the world, the Port-la-Nouvelle location has the added advantage of local feedstock supply as well as its proximity to Sime Darby Plantation’s operations in Liberia,” Mohd Bakke said.

He noted that Sime Darby Plantation has had fruitful discussions with the port and regional authorities and they are very supportive of its proposed investment in the plant.

The proposed plant can be up and running by the end of 2013 subject to the favourable outcome of feasibility studies and due diligence exercises and the approval of the Sime Darby Board of Directors.

The President of the Regional Council, Christian Bourquin, and his first Vice-President, the Senator Robert Navarro, are pleased that Sime Darby Plantation had chosen to invest in France despite the strong competition in Europe. “This is good news to have international groups come to France and presents an excellent opportunity for the economy and employment in the region. This is a reward for all the efforts we have put in over the years to enhance the food sector in the Languedoc-Roussillon region,” he added. “We are pleased to welcome Sime Darby Plantation, a company that has already proven its commitment in sustainable practices.”

The Languedoc-Roussillon region, located in the South of France and sometimes referred to as the country’s Sun Belt, is the world’s largest wine-producing region. The region’s unemployment rate at more than 12% is higher than the French national average of over 9%.

Sime Darby Plantation has 63 strategic operating units (SOUs*) of which 23 are producing CSPO. Of the remaining 40 SOUs, 30 have been audited by independent certification bodies and are awaiting certification by the RSPO. Sime Darby Plantation and Sime Darby Unimills play a leading role in the development and promotion of sustainable practices in the palm oil sector.

*An SOU refers to a mill and its surrounding estates.

Sime Darby Plantation launches first estate in west African republic

Monrovia, 19 May 2011 – Sime Darby Plantation Sdn Bhd, the world’s largest producer of certified sustainable palm oil, planted its first palm seedling in Liberia today, at a poignant ceremony that was significant in more ways than one for many of those present. The ceremonial planting marked the commencement of large-scale plantation activities in the African republic. Concurrently, Sime Darby Plantation’s Matambo Estate, its first in Liberia, was launched.

This is Sime Darby’s third tour of duty in Liberia, as the two previous attempts were interrupted by war. “We believe in Liberia and its people,” Sime Darby Group Chairman, YABhg Tun Musa Hitam said in his opening address, drawing cheers from those present. The former Kumpulan Guthrie had operated rubber plantations in the republic between 1981 and 2002. The two civil wars that wrecked Liberia (1989 to 1996 and 2001 to 2003) forced Guthrie to withdraw from the country then. Liberia transitioned into peace in 2006, when United Nations’-brokered general elections saw the formation of an elected government. Guthrie merged with two other plantation companies to form Sime Darby Bhd in 2007.

This milestone was subsequent to the cementing of an Amended and Restated Concession Agreement (CA) between Sime Darby Plantation and the Government of the Republic of Liberia in April 2009. The CA granted Sime Darby Plantation with a 63-year concession of 220,000 hectares of land to develop palm and rubber plantations in Liberia. The concession area is mostly abandoned agricultural land and degraded forests that were neglected during the civil wars.

With the commencement of planting activities, Sime Darby Plantation is on schedule to develop 120,000 hectares of its concession area in the first 11 years of the CA. The entire concession area is expected to be fully planted by 2030.

His Excellency Joseph Boakai, Vice President of Liberia, was the guest-of-honour at the ceremony in Grand Cape Mount County. He was accompanied by a high-level contingent from the Sime Darby Group led by Musa, and Franki Anthony Dass, the Managing Director of Sime Darby Plantation.

At the ceremony, Musa said: “The ceremonial planting of our first oil palm is testimony to our commitment to develop and nurture a mutually beneficial relationship between the Sime Darby Group and the citizens of the Republic of Liberia. We will continue to ensure the land under our care is developed sustainably – that means Sime Darby will apply its best practices at its Liberian plantations, just as it does in Malaysia and Indonesia.”

Musa noted as well that once its entire concession area is fully operational, Sime Darby Plantation would directly employ 35,000 people, which does not consider the indirect impact of renewed economic activity in the surrounding areas.

Sime Darby Plantation has to date invested RM50 million in Liberia. This was primarily to establish and rehabilitate the infrastructure required to commence operations in Grand Cape Mount and Bomi Counties. The company’s Matambo Estate is located in Grand Cape Mount.

Musa added that demand for palm oil is expected to be robust in the foreseeable future as global population growth and increasing disposable income in countries such as China and India mop up supply.

Indonesia and Malaysia today produce 85% of the world’s crude palm oil, accounting for about 30% of the global edible oil market. Sime Darby Plantation itself produces 2.4 million tonnes of CPO, of which almost a million tonnes is already certified sustainable palm oil. A fully operational upstream capacity in West Africa would provide Sime Darby Plantation with greater access to markets on the Atlantic rim, Europe and Africa, offering significant savings in logistics and distribution.

In line with the Sime Darby Group’s commitment towards sustainable agriculture, Sime Darby Plantation will undertake a Social & Environmental Impact Assessment (SEIA) prior to developing its concession land in Liberia.

“As is our policy, we will retain any areas of high conservation value forest and will employ agricultural practices that are designed to minimise impact on the environment,” said Musa.

In addition, Sime Darby Plantation will also build centralised housing complexes to house its estate workers in Liberia. These villages will be similar to the company’s facilities in Malaysia and Indonesia and will feature amenities which include workers' quarters to community halls, fully equipped schools and day-care centres, dispensaries and clinics. One such complex will be developed for every 3,200 hectares of plantation established. The Matambo Estate will house the first of such complexes.

Kuala Lumpur, 6 June 2011 - Sime Darby Plantation (SDP) announced today an overall plan to improve the quality of life of workers and staff of its estates and mills in Malaysia. The improvements include an increase in earnings and the progressive upgrade of housing and amenities. With respect to earnings, Sime Darby Plantation has decided to increase the remuneration of all workers and non-executive staff at its estates and mills by RM200 a month, subject to the company’s internal guidelines. The increased remuneration will be effective July 2011. Further details of the earnings increment will be announced at a later date.

Sime Darby Plantation also announced the upgrading of homes and amenities provided to their estate and mill workers in Malaysia. The initiative, called the Central Housing Complex (CHC), will see all housing and amenities for each operating unit centralised.

Sime Darby’s President & Group Chief Executive Dato’ Mohd Bakke Salleh said the situation of plantation workers has been a concern for some time and the improvements are a move in the right direction.

"Sime Darby has decided to take the lead in improving the quality of life of this group of workers, to recognise their contributions, especially in this environment of high CPO prices," Mohd Bakke said.

He added that the current RM350 basic wage structure was set in 2005, when profit margins were lower and CPO price averaged RM1,400 a tonne. "Today, prices are comfortably above the RM3,000 mark."

Sime Darby Plantation also provides other benefits to its employees, such as free housing, rice and cooking oil, as well as subsidised utilities.

Mohd Bakke acknowledged however, that when implemented, the new wage structure will have an impact on the Group’s production cost per tonne of CPO.

"Still, we believe it will be a manageable impact, and the benefits it brings to us will outweigh this impact. If the extra remuneration is productivity linked, it will even itself out," explains Mohd Bakke.

Sime Darby Plantation’s Managing Director, Mr Franki Anthony Dass noted that the new remuneration could make the industry more attractive to Malaysians.

"Currently Malaysians are shying away from working in the plantation industry due to a number of reasons, most notably, the perceived inequity of the pay in relation to the laborious work involved. The new pay should, to some extent, address this perceived inequity, especially if you consider the other benefits we have on the table," said Anthony.

"With various other incentive scheme and benefits, the aggregate effect of these could see potential earnings value for a productive general worker increase significantly. We hope, apart from attracting Malaysians to work in plantations, we will also encourage those already working with us to stay on," Anthony added.

Estate work is also deemed unattractive due to the geographical distance of plantations to urban areas.

"When we upgrade the housing and amenities in the estates under the CHC plan, it will help alleviate this concern. Facilities will be best-in-class, and workers will have a lifestyle that is akin to that of a mini-township," explains Anthony.

Also present at the announcement was Human Resources Minister, YB Datuk Dr. S Subramaniam, YB Dato’ SK Devamany, Deputy Minister in the Prime Minister’s Department, and other government officials.

The new remuneration and other incentives announced are exclusive to Sime Darby Plantation’s Malaysian estate and mill operations, and will benefit some 37,000 workers and staff. These include general workers, estate and mill office staff and auxiliary police personnel.

Company is outright global leader in RSPO-certified palm oil production

Kuala Lumpur, 22 July 2011 - Sime Darby Plantation announced today that its sustainable production capacity has broken the million metric tonne mark, following a concerted effort to certify its Strategic Operating Units (SOU) by the Roundtable of Sustainable Palm Oil (RSPO). The company now has 36 of its 63 SOUs certified by RSPO, capable of producing more than 1.5 million MT of Certified Sustainable Palm Oil (CSPO) and Certified Sustainable Palm Kernel Oil (CSPKO). Managing Director of Sime Darby Plantation, Mr Franki Anthony Dass notes that the company’s progress has been on an incline since May 2010 with a dedicated focus on its RSPO certification, both in Malaysia and Indonesia.

"In 2009, we were capable of producing only 184,000 MT of CSPO. That rose to 421,000 in 2010, and today we are past the milestone 1 million MT. Our CSPO capacity is above 2.5 million MT annually, so to have breached the 50% mark in less than 3 years is immensely satisfying", says Anthony.

"There were many who doubted that the palm oil industry would be as quick to wear to the sustainable hat, despite RSPO. But Sime Darby has proven that the industry can, and it has. This RSPO certification also underlines palm oil’s status as the dominant vegetable oil in terms of environmental sustainability, and one that has a global reach and diversified use in both food and non-food applications.

Eight of the 36 certified SOUs are located in Indonesia, while the rest are in Malaysia. Sime Darby Plantation says their operations in Liberia will follow the RSPO guidelines, even though a national interpretation of RSPO for Liberia is still a work in progress.

"In Liberia we are starting on a clean slate. Unlike in Malaysia and Indonesia where we have to undo what we inherited from the old planters who were taught largely by the colonials, in Liberia, we are from the onset implementing the best planting and sustainable agricultural practices", explains Anthony.

This will ensure that when Liberia finalises their RSPO national interpretation, Sime Darby Plantation’s Liberian SOUs will be ready to be fully certified.

Sime Darby Plantation has also stepped up its efforts on implementing various Green Technologies to better manage its carbon footprint.

"Over the next few years, we aim to reduce our carbon footprint by 25% through various initiatives such as biomass composting, bioethanol and biogas projects. These are currently in various stages of trials and implementation. Other projects such as water and energy conservation and conversion of waste-to-wealth will augment Sime Darby Plantation’s commitment to sustainability," added Mr Anthony.

Also present at the media conference was Encik Syed Mahdhar Syed Hussain, the Head of Plantation Quality & Safety Management and Mr Tang Men Kon, the newly appointed Head of Plantation Sustainability.

MRB to supply 1Malaysia Clone, Sime Darby Plantation will plant in two estates

Sime Darby Plantation Sdn Bhd (SDP) and Malaysian Rubber Board (MRB) signed a MoU on 29 September 2011 that will form the collaborative framework of co-operation aimed at bringing significant impact to the rubber industry. Under the MoU, MRB will provide research and development competencies and rubber clones for the purpose of commercial scale cultivation. The rubber clone identified is RRIM 3001, or better known as the 1Malaysia rubber clone.

Meanwhile, SDP will identify areas of land for research and development activities in rubber cultivation, and manage the trial areas. SDP has selected Ladang Bukit Pilah in Negeri Sembilan and Ladang Bukit Hijau in Kedah as the areas that will undertake the commercial scale rubber planting.

The simple ceremony was held at the 14th Floor Penthouse of Wisma Consplant 1. Signing the MoU for SDP was Mr Franki Anthony Dass, the Managing Director of SDP, witnessed by En Mohamad Nageeb Ahmad Abdul Wahab, Head of Rubber, Other Crops & Mechanization. Meanwhile, the Director General of MRB, Datuk Dr. Salmiah Ahmad, signed on behalf of the board, witnessed by Dr Mohd Akbar Md Said, the board’s Deputy Director General. Senior management and staff from both companies also witnessed the signing ceremony.

Datuk Dr Salmiah and Mr Anthony also held informal discussions on future collaborations between the two parties. Both are keen to see the industry adopt mechanisation as a means to improve efficiency and control costs.

Sime Darby Plantation refers to Oxfam’s 14 October 2011 press release titled “Oxfam calls on palm oil company to redress violations of communities’ rights in Indonesia”.

On 22 September 2011, Oxfam had released a report titled “Land and Power - the growing scandal surrounding the new wave of investments in land” in which certain serious but erroneous allegations are levelled against Sime Darby Plantation. On the same day, vide email and letter to the Sime Darby Group’s President & Group Chief Executive, Oxfam requested for a dialogue between the two organisations to discuss the contents of the report. A conference call was held on 26 September 2011 between officials of Oxfam, Sime Darby Group and Sime Darby Plantation.

Sime Darby Plantation, a wholly owned subsidiary of the Sime Darby Group, is the world’s largest producer of certified sustainable palm oil. As a responsible player in the agriculture industry, Sime Darby Plantation believes in constructive dialogue with all its stakeholders. Both Sime Darby Plantation and Oxfam have since been in regular communication on the allegations contained in the report. Sime Darby Plantation and Oxfam had agreed to work together constructively to expedite resolution for actual issues on the ground. Sime Darby Plantation had also appraised Oxfam that management is always aware of the issues on the ground and that relevant stakeholders had already been engaged. It was further communicated that resolution is anticipated.

However, in its 14 October press release, Oxfam states, amongst others, that Sime Darby Plantation has yet to take action to redress the situation, and that it ignores the rights and needs of local peoples. This press release is mischievous and Oxfam’s intentions in publishing a release, which it knows to be largely inaccurate, must be questioned. Oxfam’s conduct has been unprofessional and unbecoming of an organisation that claims to uphold the principles of human rights and fights for justice for the poor. Sime Darby Plantation has since asked Oxfam to make a public apology and retract its statement. Oxfam has offered an explanation vide letter dated 19 October 2011, although a public apology has not been forthcoming.

The facts of the situation

Sime Darby Plantation respects the rule of law in all the countries within which it operates. The company has strict internal policies in place and a code of business conduct that has zero tolerance for non-compliance with national and company standards.

Sime Darby Plantation is committed to operational sustainability as is evidenced by its adherence and commitment to the requirements of the Roundtable on Sustainable Palm Oil (RSPO). Sime Darby Plantation has committed to have all its strategic operating units audited for certification by the end of 2011.

1. The Plasma scheme
The distribution of Plasma land is agreed by musyawarah or joint consultation with local governments and Kooperasi Unit Desa (KUD – local cooperatives representing the landowners and plasma participants). The list of participants is developed by the local government and KUDs. In the PT. MAS area, the company is obliged under an agreement with the local government to develop a stipulated percentage of land under the Inti (company) and Plasma (community) scheme for small landowners in the area. The subsequent agreement with the landowners in the PT. MAS area was to provide proportional hectarage for Inti and Plasma based on the amount of land each landowner offers the company. In PT. MAS, this works out to 26.7% of land for Plasma, more than the agreed allotment with the local government. It must be noted that the obligation is proportional and in terms of percentage, not in absolute numbers.

There are about 3,000 Kepala Keluarga (KK - Heads of Families) in the PT. MAS area, of which 1,452 KK have agreed to participate in the PT. MAS Plasma scheme. The others have either opted to join other nearby Plasma schemes or remain on their own.

Most importantly it must be noted that the lives of 1,452 families have been positively impacted by the PT. MAS Plasma scheme.

Sime Darby Plantation has been actively engaged with the communities in the PT. MAS area since 2006 and is working towards full resolution of residual issues. Sime Darby Plantation had also engaged the services of independent external consultants Lingkar Komunitas Sawit, to assist in community engagement and to provide independent assessments of the situation in the area.

The facts for PT. MAS are condensed below:

• Total number of KK in area: About 3000 in 5 Desa (Villages) (or 23 Dusun (Orchards))
• Percentage of area allocated for PT. MAS Plasma scheme: 26.7%
• Number of KK who have accepted PT. MAS’ Plasma scheme: 1,452 KK
• PT. MAS expects to obtain the surat hak milik (land titles) for its Plasma scheme in the next few months.

2. Free, Prior & Informed Consent (FPIC) of landowners
Sime Darby Plantation does not develop land without the necessary FPICs and where appropriate, compensation is paid out to landowners whose land is being developed.

In PT. MAS, all areas developed have the FPIC of the landowners and compensation was paid out to the owners for crop trees that were in the area. This is fully documented.

3. Workers’ pay and compensation
In the area in question, the workers’ salaries are based on the mandatory Minimum Provincial Wage on Agriculture Sector as set by the local government. The claim that Sime Darby Plantation underpays workers is untrue. Sime Darby Plantation also pays out an additional month’s salary to workers before the Lebaran or Eid celebration, which is provided for under Indonesian law.

As in any business, workers who work longer than their normal working hours are paid overtime. This too is based on a structure agreed by the government and the unions through a collective agreement.

4. Worker facilities and benefits
Sime Darby Plantation prides itself in being a caring employer, and one that looks out for the welfare of its employees globally.

At PT. MAS, among facilities that have been or are currently being constructed include workers' housing, children’s crèches, clinics and religious houses. The company also provides transport for schoolchildren getting to and from school to ensure their safety.

The development of PT. MAS also necessitated the construction of infrastructure. Road access has been put in place in the area and has benefitted not just our workers, but also locals in providing a safer and more tenable route for their commute, compared to how it was previously.

Work on developing infrastructure obviously takes time, and the company continues to add and improve amenities provided in PT. MAS and in all its estates.

Sime Darby Plantation will continue to work and engage directly with the communities involved in PT. MAS and any area in which the company operates, as it has in the past. In PT. MAS, Sime Darby Plantation is confident of resolving issues amicably. While it may take time, Sime Darby Plantation remains committed to achieving resolution on all issues.

Sime Darby Plantation believes in constructive dialogue with its stakeholders and will continue to engage with relevant communities, officials and organisations that represent the needs of the people honestly and professionally.

Kuala Lumpur, 25 November 2011 - The Group targets a net profit after tax and non-controlling interests of RM3.3 billion and a Return on Average Shareholders’ Funds of 13.3 percent for FY2011/2012

Kuala Lumpur, 25 November 2011 – Sime Darby Berhad reported a pre-tax profit of RM1.5 billion and a net profit of RM1.1 billion for the first quarter ended 30 September 2011, boosted by stronger results of the Plantation and Industrial Divisions. This was an increase of 53 percent and 64 percent respectively over that of the corresponding quarter of the previous year.

The Plantation Division saw a 90 percent jump in its operating profit to RM933 million for the quarter, attributed primarily to higher realised crude palm oil (CPO) prices as well as marked improvements in fresh fruit bunch (FFB) production and oil extraction rate (OER). For the first quarter period, the Division achieved an average CPO price of RM2,946/MT against RM2,511/MT in the first quarter of FY2010/2011. FFB production increased by 8 percent to 2.8 million MT, driven by higher production in Malaysia and Indonesia by 7 percent and 10 percent respectively.

FFB yield per mature hectare increased by 8 percent and 6 percent in Malaysia and Indonesia, respectively, while the OER rose by 0.4 percent to 21.4 percent in Malaysia and by 1.5 percent to 22.9 percent in Indonesia.

For the Industrial Division, on-going strong demand for heavy equipment in Australia and Malaysia continued to drive its performance. The Division reported an operating profit of RM330 million in the first quarter, an increase of 42 percent compared to the first quarter of FY2010/2011.

The strong mining sector boosted the Division's Australian operations, while the logging and construction sectors provided support to its Malaysian operations. Operations in China and Hong Kong, however, were affected by the slowdown in the construction sector as a result of tightening of credits by banks and local government policies.

In spite of the difficult environment for consumer related businesses in China, the Motors Division’s performance remained resilient. This was mainly driven by strong demand for all marques and the receipt of dividend from its investment in BMW Malaysia.

The Division registered a marginal increase of 2 percent in its operating profit to RM155 million, which included a loss of RM36 million on fair valuation of forward foreign exchange contracts.

The Property Division showed a slight improvement of 3 percent in its operating profit to RM61 million in the first quarter, compared to the RM59 million recorded in the previous corresponding period. This was mainly attributable to the higher percentage of property development works completed and improved sales in the Group’s property development townships of USJ Heights and Denai Alam.

The Energy & Utilities Division, meanwhile, reported a lower operating profit of RM47 million (excluding discontinuing operations), a decline of 6 percent compared to the first quarter of FY2010/2011. The Power segment recorded a lower operating profit mainly due to the downtime of one of its power plants in Thailand. Meanwhile, the China Utilities segment experienced a slowdown in operations as a result of harsh weather conditions, thus affecting the port operations.

The Healthcare Division also posted a lower operating profit of RM7 million, a 7 percent decrease compared to the previous corresponding period. The Division incurred higher overhead costs in preparation for the opening of the Sime Darby Medical Centre Ara Damansara, targeted in early 2012.

Headline Key Performance Indicators (KPIs)

The Group also announced its KPIs for the financial year ending 30 June 2012, with a target net earnings of RM3.3 billion and a Return on Average Shareholders’ Funds of 13.3 percent.

President/CEO’s Summary

Commenting on the overall results, Sime Darby President and Group Chief Executive, Dato’ Mohd Bakke Salleh said that the Group had produced a satisfactory performance even though CPO prices during the quarter were lower than the preceding quarter.

“The strong performance by the Plantation Division is testament to the initiatives that have been put in place to enhance operational efficiencies in the estates and mills. I am very pleased that all these efforts and hard work of the Plantation team have started to bear fruit.”

On the Group’s KPIs for FY2011/2012, Mohd Bakke said the next nine months of the FY2011/2012 is expected to be challenging for the Group in view of uncertainties in the current economic environment.

“While we remain positive for the long-term fundamentals of the Group, we are cautious on the outlook for the rest of the financial year. It is crucial, now more than ever, for us to intensify our efforts to enhance efficiency as well as reduce costs in order to remain competitive and continue to deliver long-term returns to our shareholders regardless of the uncertainty in the global economy,” he added.

For more information and materials, please visit Sime Darby's Investor Relations's page.

News Articles

• 25 Nov 2011 - Bernama
  Sime Darby Aims RM3.3 Billion Net Earnings Next Year
• 26 Nov 2011 - The Star
  Sime Darby’s first- quarter net profit jumps 64%
• 25 Nov 2011 - The Star
  Sime Darby eyes RM3.3bil net earnings next year
• 1 Dec 2011 - Business Times
  Sime aims for RM3.3b net profit in 2012
• 27 Nov 2011 - The Edge
  Sime targets RM3.3b net profit for FY12
• 26 Nov 2011 - The Edge
  Sime Darby raih untung RM1.1 bilion

Monrovia, 15 December 2011 - Sime Darby Plantation (Liberia) Inc (SDPL) would like to dispel misleading reports by a local Liberian newspaper, The News, entitled “Sime Darby Told to Halt Operation” in its 14 December 2011 edition. This was in relation to the disruption of work at Grand Cape Mount (GCM) county from 5 December to 10 December 2011.

As the world´s largest producer of Certified Sustainable Palm Oil, Sime Darby Plantation and its Liberian subsidiary play a leading role in the development and promotion of sustainable agricultural practices. Sime Darby Plantation has developed guidelines that surpass the industry norm regarding environment, biodiversity and employees.

On 10 December 2011, SDPL was forced to temporarily lay off 900 of its contracted and daily-hired workers due to safety reasons. Roads were blocked and machines owned by SDPL were forced to shut down as a result of intense pressure and aggression from certain quarters. SDPL, working closely with the Presidential Elected Committee comprising five government ministries, GCM Caucus and Head of Traditional Counsel, swiftly resolved the issues with the local communities allowing the workers to resume work the next day. SDPL would like to thank the parties involved for bringing this issue to an amicable solution that benefits all parties.

The erroneous reports by The News are as follows:

1. The News reported a riot which led to the seizure of SDPL’s earth moving equipment and its keys by some angry GCM citizens. It further reported that the keys were then handed over to GCM Senator-elect, Edward Boakai Dagoseh, following the intervention of Green Advocates International lead campaigner Cllr. Alfred Lahai Brownell.
2. The News reported that the Government team mediating in the issue had asked SDPL to cease its expansion project until after it has had a meeting with the affected citizens on Thursday 9 December.
3. The News quoted citizens' representative M. Foboi as saying the citizens were not aware of Sime Darby’s existence in their county.
4. According to The News SDPL invaded the citizens’ forest without any regard for their tradition and culture, polluted their drinking water source, cleared their farmland which caused hardship and untold suffering for community members who depend on farming to survive, and destroyed forest products that they depend on for medicinal purposes. Mr. Brownell was also quoted as stating that SDPL’s operations have destroyed gravesites, poro and sande societies, and demanded appropriate compensation for their damaged crops.

SDPL would like to assert that no riots occurred, and that the keys were collected by Senator Edward Boakai Dagoseh himself without any assistance from Alfred Brownell.

SDPL had been given the approval to resume operations with immediate effect following the meeting with the citizens on Sunday evening (5 December).

SDPL has been actively and regularly engaging the citizens of GCM for the last 18 months, and has had several ceremonies to announce its presence in Liberia, including the official opening of the Matambo Estate, graced by the Vice-President, Senators and Superintendents.

SDPL has never evicted any land owners nor illegally relocated any residents during the land clearing process. SDPL does not practice nor condone land grabbing in Liberia or anywhere it operates.

It will only proceed with development once Free, Prior and Informed Consent (FPIC) has been obtained from the local communities, a requirement under the New Planting Procedures (NPP) of the Roundtable on Sustainable Palm Oil (RSPO), and under Article 32 of UN Declaration of Rights of Indigenous People. Where appropriate, compensation is paid out to landowners whose land is being developed.

SDPL lays down the compensation plan for the land owners during the many engagement sessions. Land owners are compensated for each palm, banana, kola and other tree that is within their own land boundary, with as much as US$6.00 per plant. As of 30 September 2011, it had paid USD1,348,978.94 as crop compensation to 2,132 farmers who had agreed to let their land be developed, after negotiations were completed.

SDPL does not clear virgin forests. The concession area is mostly abandoned agricultural land and degraded forests that were neglected during the civil wars. For example, some of SDPL’s current rubber estates still contain trees that were planted in the 1960’s. While these trees are still producing latex, their age limits productivity.

It is Sime Darby Plantation’s policy to conserve high conservation value forests (HCVF), which is part of the New Planting Procedures (NPP) of the RSPO. These guidelines and policies are applicable in all Sime Darby Plantation operations regardless of their geography.

Social & Environmental Impact Assessments (SEIA) are undertaken as a standard operating procedure before any development begins. Areas regarded as HCVF will be identified and maintained. Where necessary, land has been set aside for farming activities. As one of the founding members of RSPO, Sime Darby Plantation's commitment towards sustainable plantation practices includes maintaining HCVF in its estates.

The following areas will not be developed:

i. natural forests within the estates
ii. swamp areas
iii. river boundaries
iv. water catchments and effluent pond areas
v. marginal soil areas
vi. areas with slopes of more than 20 degrees gradient
vii. land belonging to local indigenous peoples

SDPL also ensures that local communities benefit from employment opportunities and assist in improving infrastructure, amenities and schools. Furthermore, as palm trees usually do not bear fruit for three years after planting, SDPL will compensate its planters, smallholders and growers for these first three years so they can depend on steady and reliable income. This way, SDPL contributes to their wellbeing and that of their families, while ensuring that its plantations are developed responsibly and sustainably.

SDPL reiterates that it operates by respecting not only the local laws of Liberia and the Principles and Criteria of RSPO, but also the traditions and practices of the people of Liberia.

SDPL continues to believe in the future of Liberia and is committed to implementing the best agricultural and management practices employed by Sime Darby Plantation in all its operations globally.

Sime Darby refers to New York Times article "A Nobel Laureate's Problem At Home" published on 20 January 2012.

Reference is made to the New York Times article, "A Nobel Laureate’s Problem At Home" published on 20 January 2012. While the article is materially the expression of the writer’s opinion, it is based upon and thus perpetuates certain incorrect assumptions regarding Sime Darby Berhad’s operations in Liberia.

Sime Darby Plantation, the plantation division of Sime Darby Berhad, signed a 63-year concession agreement with the Government of Liberia for 220,000 hectares of land to be developed into oil palm and rubber plantations. A new company, Sime Darby Plantation (Liberia) Inc (SDPL), was established to manage the oil palm and rubber plantations in Liberia. The first estate was launched in May 2011.

Sime Darby Plantation is a world leader in sustainable agricultural practices and is the world’s largest producer of certified sustainable palm oil. More than 60% of the Group’s production has been certified by the Roundtable on Sustainable Palm Oil (RSPO). Thus, as is the case with all the Group’s plantation operations, SDPL is required to adhere strictly to sustainability policies, procedures and protocols recognised by the RSPO.

This commitment to sustainable practices encompasses all aspects of operations and includes regular and direct engagement with communities, adherence to national laws and regulations, environmental stewardship and the use of best agricultural practices.Thus, the alleged transgressions attributed to SDPL are unfounded. The more serious allegations were:

A. Alleged loss of access to homes, farms, cemeteries and sacred sites

The truth: SDPL has not evicted any land owner nor relocated any resident and neither has the company desecrated cemeteries or sacred sites. Sime Darby Plantation respects the local laws of Liberia and the traditions and practices of the Liberian people. SDPL will proceed with development of any land only after Full, Prior and Informed Consent (FPIC) has been obtained from the local communities. This is in keeping with the company’s own internal policies, the FPIC guidelines under the New Planting Procedures (NPP) of the RSPO and Article 32 of UN Declaration of Rights of Indigenous People.

SDPL has actively engaged with local communities to inform them of the development plans and to seek their consent. Specially designed awareness programmes have been, and are still being carried out in the concession areas. Where appropriate, compensation is paid out to landowners whose land is being developed. Compensation plans are actively communicated to land owners during the many engagement sessions. Land owners are compensated for each palm, banana, kola and any other tree that is within their own land boundary, with as much as US$6.00 per plant. As of 30 September 2011, SDPL has paid US$1,348,978.94 as crop compensation to 2,132 farmers who have agreed to have their land developed, after negotiations were completed.

B. Impact of SDPL’s activities on the environment and water resources

The truth: SDPL has strict policies against the clearing of virgin forests. The Liberian concession area is mostly abandoned agricultural land neglected during the civil wars, and degraded forests. For example, some of SDPL’s current rubber estates still contain trees that were planted in the 1960’s. While these trees are still producing latex, their age limits productivity and thus minimises the economic potential of the land and the communities that depend on the land.

It is Sime Darby Plantation’s policy to conserve high conservation value forests (HCVF). This policy is applicable in all Sime Darby Plantation operations regardless of geography. Thus, Social & Environmental Impact Assessments (SEIA) are undertaken as a standard operating procedure before any development begins. Areas regarded as HCVF are identified and maintained.

The following include areas maintained as HCVF:

• natural forests within the estates
• wetland areas
• river and riparian boundaries
• water catchments and effluent pond areas
• marginal soil areas
• areas with slopes of more than 20 degrees gradient
• land belonging to local indigenous peoples for which FPIC has not been obtained

C. Alleged failure to pay workers’ promised salaries at Grand Cape Mount county

The truth: SDPL’s employees and workers are compensated based on the signed Collective Bargaining Agreement (CBA) with the worker's union, General Agriculture and Allied Workers Union of Liberia (GAAWUL), and they are paid US$5.25 per day.

Sime Darby Plantation remains committed to the balanced development of the economy and the people of Liberia. In fact, once fully planted, Sime Darby Plantation’s estates in Liberia will create up to 35,000 jobs. This will help to address Liberia's current unemployment rate of 80%.

SDPL also ensures that local communities benefit from employment opportunities and the company assists in improving infrastructure, amenities and schools. This way, SDPL contributes to their wellbeing and that of their families, while ensuring that its plantations are developed responsibly and sustainably.

Currently, all SDPL’s estate managers are locals. They are trained and given the ample opportunities to learn best agricultural practices from the largest plantation company in the world. These managers are learning on the job and in turn pass on their knowledge to field workers.

SDPL reiterates that it operates by respecting not merely the local laws of Liberia and the Principles and Criteria of RSPO, but also the traditions and practices of the people of Liberia.

Sime Darby recognises the need for credible news organisations and free, fair and accurate reporting on issues. Thus, Sime Darby invites the New York Times to visit our operations in Liberia to judge for yourselves the real situation on the ground and the benefit that Sime Darby’s operations will bring to the Liberian people. While the article is materially the expression of the writer’s opinion, it is based upon and thus perpetuates certain incorrect assumptions regarding Sime Darby Berhad’s operations in Liberia.