i
2022 Annual Report
ANNUAL REPORT
Anglo-Eastern Plantations Plc
Company Number: 1884630
Contents
About AEP
Financial Highlights
Key Information
Shareholder Information
Chairman's Statement
Strategic Report
Financial Record
Estate Areas
Location of Estates and Mills
Directors' Report
Directors' Responsibilities
Directors
Statement on Corporate Governance
Audit Committee Report
Directors' Remuneration Report
Auditor's Report
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Company Statement of Financial Position
Company Statement of Changes in Equity
Notes to the Company Financial Statements
Notice of Annual General Meeting
2
4
6
7
9
12
60
61
62
63
67
68
70
77
82
90
101
103
104
106
107
109
148
149
150
154
Company addresses, advisers and website
Inside Back Cover
About Anglo-Eastern Plantations
The group comprising Anglo-Eastern Plantations Plc (“AEP”) and its subsidiaries (the “Group”), is a major
producer of palm oil and to a lesser extent rubber with plantations across Indonesia and Malaysia, amounting
to approximately 128,000 ha.
HPP mill in North Sumatera taking shape
Harvesting of Fresh Fruit Bunches (“FFB”)
Unloading of FFB at mill
AEP has a Premium Listing on the Main
Market of the London Stock Exchange.
The Company was listed in 1985.
Primary activities are the crop production
and processing of palm oil and some
rubber.
Palm oil is an important commodity and
the industry reportedly employs millions of
workers directly and indirectly across
Indonesia and Malaysia.
is used
It
food, cosmetics, other
in
extensively
consumer products and biofuel.
The Group is committed to the responsible
its plantations and
development of
facilities with particular attention to both
the environment and society in which it
operates.
AEP mitigates
impact on
the
the
environment by capturing methane gas
emissions from four mills and generating
its biogas
renewable energy
plants. Construction
first
Compressed Natural Gas (“BioCNG”)
plant has begun, where it will capture and
compress methane gas for industrial use.
though
of
its
Annual Report 2022 | Anglo-Eastern Plantations Plc
2
About Anglo-Eastern Plantations
Oil Palm Plantations
The Group has developed over 63,100 ha of mature oil palm in sixteen
plantations across Indonesia, together with one plantation in Malaysia. The
weighted average age of the trees in the Group is approximately 14 years. In
Indonesia, the trees averaged about 13 years old while in Malaysia the trees
are older at 25 years. The Group’s FFB production in 2022 reached 1.17 million
mt of which 1.12 million mt was from continued operations.
Oil Palm Development
An Oil Palm tree usually takes about three years from planting to harvest of the
first crop and will reach full production after a further five years. The Group has
approximately 8,000 ha of immature plantations of which 1,814 ha were planted
in 2022.
Palm Oil Mills
The Group operates six palm oil mills processing up to a combined 340 mt of
FFB per hour. The construction of the seventh mill in North Sumatera is nearing
completion with delay due to the pandemic. Commercial operation is scheduled
for the first half of 2023, which would increase the Group’s processing capacity
to 400 mt per hour. The combined oil extraction rate (“OER”) averaged 20.6%
while kernel extraction rate (“KER”) averaged 4.8% in 2022.
Third Party Crop Purchases
In 2022 the Group purchased approximately 1.08 million mt of FFB from third
party producers, comprising small plantations and local farmers, for processing
through its mills. The total FFB throughput at the Group’s mills in 2022 was 2.21
million mt producing 455,600 mt of crude palm oil (“CPO”) and 106,200 mt of
kernel. The Group has the capacity to store up to 54,400 mt of CPO at its six
mills.
Rubber Plantations
In 2022 the 262 ha of established rubber plantations produced 440 mt of raw
latex and rubber lumps. The size of the rubber plantations will reduce in the
coming years as the Group replaces ageing rubber trees with oil palm. The
average age of the rubber trees is 15 years. The yield in 2022 was 1.68 mt/ha.
Biogas Plants
Four mills are equipped with biogas plants to capture the methane gas emission
to generate electricity for its own consumption, with the surplus being sold to
the Indonesian state authorities. This reduces the mills’ reliance on fossil fuels
and improves the Group’s carbon footprint. The Group sold 23,900 MWh of
surplus electricity in 2022.
Annual Report 2022 | Anglo-Eastern Plantations Plc
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Financial Highlights
The Group key performance indicators (“KPI”) as required in accordance with the requirements of s414C,
Companies Act 2006 are as follows:
Continuing operations
Revenue
Profit before tax:
- before biological assets (“BA”) movement
- after BA movement
Basic Earnings per ordinary share (“EPS”):
- before BA movement
- after BA movement
Dividend (cents)
2022
$m
447.6
138.7
132.9
2021
$m
433.4
132.7
137.1
221.86cts
212.34cts
25.0cts
235.25cts
242.34cts
5.0cts
% change
3%
5%
(3%)
(6%)
(12%)
AEP 10 years Share Performance
%
C
h
a
n
g
e
i
n
i
n
d
e
x
a
n
d
s
h
a
r
e
p
r
i
c
e
T
r
a
d
n
g
i
l
v
o
u
m
e
Year
FTSE 100
Share Price
Trading volume
Source: Financial Times
Annual Report 2022 | Anglo-Eastern Plantations Plc
4
Financial Highlights
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Revenue ($000)
Profit Before Tax Before BA
($000)
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2018 2019 2020 2021 2022
2018 2019 2020 2021 2022
Basic Earnings Per Share
Before BA ($, cents)
Asset Value Per Share
($, cents)
250.00
200.00
150.00
100.00
50.00
0.00
1,400
1,200
1,000
800
600
400
200
0
2018 2019 2020 2021 2022
2018 2019 2020 2021 2022
Annual Report 2022 | Anglo-Eastern Plantations Plc
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Key Information
Own FFB Production & Outside Purchase (mt)
2018
2019
2020
2021
2022
Own FFB Production
Outside Purchase
Crude Palm Oil & Palm Kernel Production (mt)
mt
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
mt
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2018
2019
2020
2021
2022
CPO
Palm Kernel
Annual Report 2022 | Anglo-Eastern Plantations Plc
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Shareholder Information
Market capitalisation
The market capitalisation of Anglo-Eastern Plantations Plc in the United Kingdom (“UK”) at 31 December 2022 was
£317 million (2021: £285 million), the ordinary share price at the close of business on 13 April 2023 was 800 pence
giving a market capitalisation of £317 million.
Website
https://www.angloeastern.co.uk/ contains various details and information on the Company and its operations, together
with all the key historical financial and regulatory information on the Company. The website is updated on a continuing
basis incorporating all Company announcements and other relevant developments, including environment, social and
governance matters (“ESG”) and share price movements.
The website allows shareholders and investors to select and receive e-mail alerts from the Company on selected
regulatory news. Shareholders are encouraged to use e-mail alerts to follow the development of the Company.
Investor relations
Investors requiring further information on the Company are invited to contact:
Dato’ John Lim Ewe Chuan
Executive Director
Anglo-Eastern Plantations Plc
Quadrant House, 6th Floor
4 Thomas More Square
London E1W 1YW
United Kingdom
44 (0) 20 7216 4621
44 (0) 20 7767 2602
Tel:
Fax:
Email: datojohnlim@angloeastern.co.uk
Registrar
Administrative queries about holdings of AEP shares can be directed to the Company's Registrar:
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
United Kingdom
+44 (0) 370 703 0164
Tel:
Email: web.corres@computershare.co.uk
Shareholders can view and update their account details via the Computershare website, details of which can be
found at https://www-uk.computershare.com/investor/.
Annual Report 2022 | Anglo-Eastern Plantations Plc
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Shareholder Information
Annual General Meeting
The 38th Annual General Meeting (“AGM”) of the Company will be held at the offices of UHY Hacker Young LLP, 6th
floor Quadrant House, 4 Thomas More Square, London E1W 1YW on Friday, 16 June 2023 at 11 am (UK time). Notice
of the meeting is set out at the end of this Annual Report on pages 154 to 157.
Submission of proxy voting
Shareholders will receive a hard copy of the proxy form for the 2023 AGM. Shareholders will also be able to vote
electronically by visiting http://www.investorcentre.co.uk/eproxy. Login details such as Control Number and Pin can be
located on the Proxy Form included with this Notice. Shareholders who have elected for electronic communication will
receive their login details via email. Proxy votes must be received no later than 9.30 am (UK time) on Wednesday, 14
June 2023. To be effective, all proxy appointments must be lodged with the Company’s Registrars at Computershare
Investor Services PLC, The Pavilions, Bridgwater Road, Bristol BS99 6ZZ. Holders receiving electronic communication
and those with deemed consent can request to receive physical copies by contacting Computershare on +44 (0)370
703 0164.
Amalgamation of accounts
Shareholders receiving multiple copies of Company mailings as a result of several accounts being maintained in their
name are invited to write to the Company's Registrar at the above address to request that their accounts be
amalgamated.
Payment of dividends
While the dividend is declared in US Dollars, shareholders can choose to receive their dividends in Pounds Sterling.
In the absence of any specific instruction up to the date of closing of the register, shareholders with addresses in the
UK will be deemed to have elected to receive their dividends in Pounds Sterling and those with addresses outside the
UK will be deemed to have elected to receive their dividends in US Dollars.
The Pounds Sterling equivalent dividend will be paid at the exchange rate prevailing at the date of closing of the
register.
Shareholders are encouraged to switch to digital dividend payments rather than payment through their nominated bank
accounts or via cheque. Receiving payments via CREST will reduce the back-office resources application and meets
AEP sustainability commitments to shareholders, investors and the market. The switch is easy and you can change
your payment instruction by logging online through Computershare Investor Services website.
Electronic communications
Computershare Investor Services PLC offers AEP shareholders the opportunity to manage their shareholding online,
through the Investor Centre.
Registration is free and can be used to manage shareholdings quickly and securely. To register for this service, please
go to https://www-uk.computershare.com/investor/ and follow the instructions.
Annual Report 2022 | Anglo-Eastern Plantations Plc
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Chairman’s Statement
I was honoured to be appointed the Non-Executive Chairman by the Board of AEP on 8 July 2022, following the
unexpected retirement of the then Chairman, Madam Lim Siew Kim. Sadly, Madam Lim passed away shortly after her
retirement on 14 July 2022. Madam Lim was a board member for 29 years and through her leadership, as the
Chairman, for the last 11 years has seen the Group grow in profitability and the business expanded to what it is today.
Madam Lim’s significant contributions to the Group were also acknowledged by many shareholders, whom at the time,
expressed their heartfelt condolences as well as thanking Madam Lim for her leadership and AEP’s achievements and
success during her tenure on the Board. AEP will continue its strategy of expansion by increasing its planted areas to
enhance shareholders’ value, continuing the Board’s strategy under Madam Lim’s leadership. In addition, the Board
is looking to expand AEP’s business by acquiring brownfields and profitable plantations with its financial resources, as
well as improving its profitability within the Group through rationalisation and divesting non performing estates and
consolidation of AEP’s shareholdings in its subsidiaries.
Madam Lim’s family interests in AEP continues with Genton International Limited remaining a significant shareholder
of AEP as well as with the appointment of Mr. Marcus Chan Jau Chwen, the son of Madam Lim, to AEP’s Board as a
Non-Independent Non-Executive Director. Marcus’s appointment, together with all his credentials were announced to
the market on 10 August 2022. Marcus’s experience in financial advisory as well as business development, together
with his youth and dynamism will add value to the Group.
During the year, the Board also appointed Ms. Farah Suhanah Tun Ahmad Sarji to AEP’s Board as an Independent
Non-Executive Director to replace me, as I was no longer deemed independent, after having served 9 years as an
Independent Non-Executive Director. Farah’s appointment, together with all her credentials were announced to the
market on 20 October 2022. The Board continues to observe the need for diversity with the appointment of Farah who
would add value to the Group, with her previous involvement in the palm oil plantation industry.
With two new appointments to the Board and its committees, the composition of the 3 committees is now as follows:
Audit Committee:
Lim Tian Huat, Chairman. (Senior Independent Non-Executive Director)
Farah Suhanah Tun Ahmad Sarji
Remuneration Committee:
Lim Tian Huat, Chairman
Farah Suhanah Tun Ahmad Sarji
Nomination and Corporate Governance Committee:
Farah Suhanah Tun Ahmad Sarji, Chairman
Lim Tian Huat
Marcus Chan Jau Chwen
Dato John Lim, the Executive Director, and I resigned from the above mentioned committees in line with the UK
Corporate Governance Code.
The Group’s FFB production from continuing operations in 2022 reached 1.12 million mt, 3% lower than last year of
1.15 million mt, mainly due to replanting ageing trees. Production in Bengkulu registered a decline of 12% due to
replanting programme in the last two years which has reduced the matured plantings by 2,000 ha. The withholding of
fertilizers for trees earmarked for replanting also contributed to a drop in yield. Normally we stop applying fertilizers
two years prior to replanting. Crop production in Kalimantan was lower by 3% due to logistics problems and high
incidence of abnormal fruit bunches. Public roads in Kurun township were closed for a month in the first quarter of
2022 because of extremely bad weather which affected the transportation of crops, which resulted in the temporary
suspension of harvesting in KAP plantation for about a month. The public roads are still closed from time to time usually
due to damages from incessant rain and overloading, especially by heavy trucks carrying coals. The lack of male
flowers in SGM plantation also caused a higher incidence of abnormal bunches resulting in a lower crop yield as
abnormal fruit bunches are stripped of its fruitlets before sending to the mill for processing leaving behind the empty
fruit bunches (“EFB”) in the field.
Annual Report 2022 | Anglo-Eastern Plantations Plc
9
Chairman’s Statement
FFB bought-in from surrounding smallholders and plasma was 1.08 million mt (2021: 1.14 million mt), 5% lower than
2021. Our two mills in Bengkulu experienced a significant drop of 21% in external crop purchases. The reopening of a
mill of one of our previous FFB suppliers, together with competitions and transport problems caused by heavy rain,
which exceeded 500 mm a month, were the main reasons for lower purchases. In addition, our Tasik mill had to
prioritize internal crops for processing leading to a reduction of external crop purchases as its storage capacity for
CPO reached its limit during the export ban. The mills processed a combined 2.21 million mt of FFB, 4% lower than
last year of 2.31 million mt. CPO production, as a result, was 4% lower at 455,600 mt, compared to 473,200 mt in
2021.
CPO prices experienced contrasting fortune in 2022. Prices surged to record levels in the first half of the year following
the outbreak of the war in Ukraine, unfavourable weather conditions in prime soybean producing countries and the
export ban on CPO and refined palm oil in Indonesia. Prices weakened in the second half of the year after the export
ban was lifted amidst a rise in global inventory of vegetable oil. The fear of worldwide recession also softened demand
and dampened prices. A more detailed explanation is provided in the Strategic Report under Commodity Prices. The
yearly average CPO price ex-Rotterdam, nevertheless, was 13% higher at $1,369/mt, compared to $1,211/mt in 2021.
The Group’s revenue from continuing operation reached a record high of $447.6 million, 3% higher compared to $433.4
million achieved in 2021, despite the lower CPO production, as a result of the elevated CPO price for the first half of
the year. The operating profit for the Group from continuing operations in 2022, before biological asset (“BA”)
movement, was higher at $132.9 million, from $129.3 million reported in 2021. The earnings per share, before BA
movement from continuing operations, decreased by 6% to 221.86cts, from 235.25cts in 2021. The Group’s operating
profit after BA movement from continuing operation for 2022 was at $127.1 million after a downward BA movement of
$5.8 million as compared to 2021 operating profit of $133.7 million after an upward BA movement of $4.3 million.
The Group’s new planting for oil palm including plasma for 2022 totalled 952 ha compared to 1,701 ha last year. Further
details are on page 25 under Corporate Social Responsibility for Plasma obligation of the Group. The new planting
was mostly concentrated in the Kalimantan regions, where negotiations with owners over land compensation were
concluded efficiently. Replanting of some 985 ha of oil palms in Bengkulu was accelerated during the year to replace
trees with poor yield. Another 115 ha was replanted in North Sumatera. In 2023, the Group plans to plant 2,500 ha of
oil palm which includes replanting of another 1,400 ha in Bengkulu and North Sumatera. Plasma planting for 2023 is
estimated at 300 ha.
The Group has four biogas plants with a combined capacity of slightly above five megawatts. The Group sold 23,900
MWh of surplus electricity in 2022 compared to 20,300 MWh last year. The biogas plants help trap and burn the more
toxic methane gas emission from palm oil mill effluent (“POME”) to generate green electricity and produce less harmful
carbon dioxide in our efforts to reduce our carbon footprint. Methane has a higher heat-trapping potential than carbon
dioxide and cutting its emission can have a positive impact on reining in global warming. The revenue from the sale of
surplus electricity to the national grid was $1.16 million (2021: $999,000). Further investment in biogas plants in
Indonesia is dependent on regional demand. The Group also faces a unique situation where buyers kept reducing
electricity rates as well as uptake. During the year, the Group reached a Build Own Operate Transfer (“BOOT”)
agreement with a third party for the construction of two BioCNG plants in North Sumatera. The BioCNG plants will
draw methane from our existing biogas plants, purified and further compressed the gas for industrial use with an
intention to replace the natural gas or fossil fuel for their boilers. The third party will fund the project costs estimated at
$8.3 million and will retain the right to operate the plants for fifteen years. It will also pay the mills a share of the revenue
from the sale of BioCNG. The first BioCNG plant is expected to be operational in the third quarter of 2023.
During the year, AEP bought back shares in six of its subsidiaries in Indonesia for a consideration of $5.8 million, which
will enhance shareholders’ value in 2023 and onwards, together with a forgiveness of loans of $1.5 million to two
minority shareholders. AEP will continue to buy back shares from its minority shareholders at a fair and competitive
price as part of its consolidation of its shareholdings in the subsidiaries in Indonesia. The financial effect of a buy back
going forward is to enhance earnings per share.
As mentioned in the 2021 Annual Report, AEP was in the process of selling three of its non-performing plantations in
South Sumatera. Following from that, a memorandum of understanding (“MOU”) was signed with a potential buyer
from Indonesia in December 2022 for a period of exclusivity to conduct legal and financial due diligence. However, the
Annual Report 2022 | Anglo-Eastern Plantations Plc
10
Chairman’s Statement
potential buyer decided not to proceed following the completion of the due diligence. Since this transaction did not
materialise, the book value of the three plantations for sale is further impaired by $5 million. The management is
currently in discussion with another interested buyer and aimed to complete the sale of the three plantations as soon
as practicable.
In late 2022, the European Union (“EU”) introduced a new law, the Deforestation Regulation (“EUDR”) which is aim at
preventing companies from placing products including commodities linked to deforestation and forest degradation in
the EU market. Companies exporting their products to EU are required to provide proof that their products are
deforestation free and are legal. Palm oil producers have over the years taken steps to meet EU requirements,
including stepping up their national sustainable palm-oil certification standards and improving environmental
protection. The latest EUDR, in addition to an EU renewable-energy directives announced in 2018, requires the
phasing out of palm-based transportation fuels by 2030 does not bode well for the future of palm oil in EU, the third
largest market for CPO. A stricter due diligence process will also add to the administrative burden and higher production
costs.
AEP remains committed to No Deforestation, No Peatland, No Exploitation (“NDPE”) policies. All supplies of FFB to
our mills are traceable to their origins of supply chains and are not linked to illegal deforestation. We are aware of
growing pressure from buyers to avoid CPO with NDPE and High Conservation Values (“HCV”) issues.
In determining the amount of dividends to be paid to our shareholders, the Board has taken a balanced approach to
the requirement of funds in the Company in order to expand through the acquisitions of brownfields, profitable
plantations as well as consolidating its shareholdings in the subsidiaries in Indonesia to enhance shareholders’ value
but at the same time cognisant of shareholders’ wishes to have dividends as a form of income. It is also a relief that
the uncertainty caused by the Covid-19 pandemic is over and we are back to normalcy, other than the ongoing war in
Ukraine, and therefore the Board’s sentiments on added prudence and contingency in the past can be less stringent.
In the light of the results achieved in the year, the Board has declared a final dividend of 25.0cts per share, in line with
our reporting currency, in respect of the year to 31 December 2022 (2021: 5.0cts). In the absence of any specific
instructions up to the date of closing of the register on 2 June 2023, shareholders with addresses in the UK will be
deemed to have elected to receive their dividends in Pounds Sterling and those with addresses outside of UK will be
deemed to have elected to receive their dividends in US Dollars. Subject to the approval by shareholders at the AGM,
the final dividend will be paid on 7 July 2023 to those shareholders on the register on 2 June 2023.
The Board has also been receiving increasing requests from shareholders to buy back AEP’s shares with the cash
balance. The Board has in the past been reticent on share buy backs because of the lack of evidence that a buy back
directly results in an increased share price, especially with the lack of liquidity of the Company’s share and buy backs
could cause the shares to be more illiquid. Nevertheless, the Board has taken on board shareholders’ sentiments and
will consider launching a modest buy back programme in a timely manner and at a efficient price. Further details will
be communicated to shareholders in due course. The last time AEP bought back its shares was in 2007 with a purchase
of 50,000 shares at £3.86 per share.
On behalf of the Board of Directors, I would like to convey our sincere thanks to our management and employees of
the Group for their dedication, loyalty, resourcefulness, commitment and contribution to the Group.
I would also like to take this opportunity to thank shareholders, business associates, government authorities and all
other stakeholders for their continued confidence, understanding and support for the Group.
Mr. Jonathan Law Ngee Song
Chairman
21 April 2023
Annual Report 2022 | Anglo-Eastern Plantations Plc
11
Strategic Report
Introduction
The Strategic Report has been prepared to provide shareholders with information to complement the financial
statements. This report may contain forward-looking statements, which have been included by the Board in good faith
based on information available up to the time of approval of this report. Such statements should be treated with caution
going forward given the uncertainties inherent with the economic and business risks faced by the Group.
Business Model
The Group will continue to focus on its strength and expertise, which is planting more oil palms sustainably and
production of CPO. This includes replanting low-yielding aging palms, replacing old rubber trees with palm trees and
building more mills to process the FFB. The Group has, over the years, created value to shareholders through
expansion in a responsible manner.
The Group remains committed to use its available resources to develop the land bank in Indonesia, together with
acquisition of profitable plantations at strategic locations, as regulatory constraints permit. The Indonesian government
has, in recent years, passed laws to prioritise domestic investments and to limit foreign direct investments over national
interest, including a limit of 20,000 ha per province and a national total of 100,000 ha on the licensed development of
oil palms for companies that are not listed in Indonesia or with less than a majority local ownership.
The Group’s objectives are to provide returns to investors in the long-term from its operations as well as through the
expansion of the Group’s business, to foster economic progress in localities of the Group’s activities and to develop
the Group’s operations in accordance with the best corporate social responsibility and sustainability standards.
We believe that sustainable success for the Group is best achieved by acting in the long-term interests of our
shareholders, our partners and society.
Our Strategy
One of the Group’s objectives is to provide an appropriate level of return to the investors and to enhance shareholder
value. Profitability, to a large extent, correlated to the CPO price, which is volatile and determined by supply and
demand as well as the weather. The Group believes in the long-term viability of palm oil as it can be produced more
economically than other competing oils and remains the most productive source of vegetable oil in a growing
population. Soybean crops would require up to ten times as much land to produce an equivalent weight of palm oil. It
has been reported that one hectare of land can produce up to 4 mt of CPO, much higher than rapeseed of 0.7 mt,
sunflowers of 0.6 mt or even soybeans of 0.4 mt. In this regard, palm oil is far more sustainable than other edible
vegetable oils.
The Group’s strategies, therefore, focus on maximising yield per hectare above 22 mt/ha, minimum mill production
efficiency of 110%, minimising production costs below $300/mt and streamlining estate management. For the year
under review, the overall Indonesian operations achieved an FFB yield of 19.3 mt/ha, 136% mill efficiency and
production cost of $349/mt. This compared unfavourably to 2021 where the Group achieved a yield of 19.8 mt/ha,
155% mill efficiency and a lower production cost of $296/mt. The drop in mill efficiency was due to the increase in
milling capacity from 310 mt/hr to 340 mt/hr. Despite stiff competition for external crops from surrounding millers, the
Group is committed to purchasing more external crops from third parties at competitive, yet fair prices, to maximise
the production efficiency of the mills. With higher throughput, the mills would achieve economies of scale in production.
A mill is deemed to achieve 100% mill efficiency when it operates 16 hours a day for 300 days per annum.
In line with the commitment to reduce its carbon footprint, the Group plans to construct, in stages, biogas and/or
BioCNG plants at all its mills. The biogas plants will trap the methane gas emitted from the treatment of palm mill
effluents to generate electricity to power its boilers which in turn reduces the consumption of fossil fuel while BioCNG
will produce compressed, purified biogas. The mills plan to sell the surplus electricity. With more industrial use of
BioCNG, the consumption of fossil fuel is expected to reduce and progressively reduce the greenhouse gas emissions
per metric ton of CPO produced in the next few years. It is commonly accepted that failure to address growing calls to
reduce greenhouse gas emissions could threaten the long-term social acceptability and profitability of a palm oil
company. The Group has also set metrics and targets to lower greenhouse gas emissions over time as detailed in the
Decarbonisation modelling and high-level target setting.
Annual Report 2022 | Anglo-Eastern Plantations Plc
12
Strategic Report
The Group will continue to engage and offer competitive and fair compensation to the villagers so that land can be
cleared and be planted.
Non-financial reporting statement
The Group has complied with the requirements of Section 414CB of the Companies Act 2006 by providing a wide
range of non-financial information about employees, environmental and social matters in the table below and in our
website:
Non-financial
matter
Business model Business model and strategy
Policies and standards which govern our approach
Page
12 to 13
31 to 36
Principal risks and uncertainties
32 to 33
Principal risks and uncertainties: Country, regulatory and governance practices
36
Principal risks and uncertainties: Weather and Environmental and conservation practices
26 to 27
Indonesian Sustainable Palm Oil
27 to 31
Environmental, Social and Governance practices
37 to 50
Management of Climate Risks
51
Decarbonisation modelling and high level target setting
50 to 54
Carbon Reporting
75 to 76
Corporate Governance: Environmental and corporate responsibility
Other responsible agricultural practices and sustainable policies can be found on our website
Employees: Employment policies
Directors’ Remuneration Report: Employees engagement
Workers are protected from exposure to occupational health and safety hazards that are likely
to pose immediate risk of permanent injury, illness or fatality. Proper signages are in place at
relevant spots to alert employees of safety. Workshops and training sessions on occupational
safety and health care are regularly conducted.
Principal risks and uncertainties: Covid-19 and other contagious diseases
AEP has established clear policies and strict protocols for the control and prevention of the
spread of Covid-19 and other contagious diseases within the workplace environment. There are
requirements for mask wearing, social distancing and sanitising of the workplace regularly. AEP
also privately funded vaccination programme within its plantations and employees are required
to be compulsorily vaccinated. AEP also has strict procedures on testing at work and self
isolation of its employees when necessary, together with home support for the affected ones to
ensure full recovery before they resumed work.
AEP has clear policies of no exploitation of its employees, including complying with paying
minimum wage. It does not practise child or forced labour in line with the Modern Slavery
Statement referred to on its website. In addition, a whistle blowing policy is in place to allow any
employee to raise concerns about unethical, illegal or questionable practices, in full confidence,
without the risk of reprisal.
Anti-corruption and anti-bribery policies and procedures are explained in the Directors’ Report.
56 to 57
35
64
56 to 57
82 to 83
Environmental
matters
Employees and
Health & Safety
Social matters
Respect for
human rights
Anti-corruption
and anti-bribery
matters
Financial Review
Performance of the business during the year
For the year ended 31 December 2022, the revenue for the Group from continuing operation was $447.6 million, 3%
higher than $433.4 million reported in 2021 due primarily to the higher CPO prices.
The Group’s operating profit from continuing operation for 2022, before biological asset movement, was $132.9 million,
3% higher than last year of $129.3 million. The higher operating profit was due to higher CPO prices which also
absorbed the higher operational costs. Transport and fertilizers costs in particular rose sharply during the year.
FFB production for continuing operations for 2022 reached 1.12 million mt, 3% lower than the 1.15 million mt produced
in 2021. The yield for continuing operations from Indonesian plantations was lower at 20.6 mt/ha (2021: 21.1 mt/ha)
due to lower production in Bengkulu and Kalimantan plantations. The reasons for the lower production were explained
on page 9 of the Chairman’s Statement.
Annual Report 2022 | Anglo-Eastern Plantations Plc
13
Strategic Report
FFB bought-in from local smallholders and plasma in 2022 was 1.08 million mt (2021: 1.14 million mt), 5% lower
compared to 2021. The reasons for reduction in external crops purchases were explained on page 10 of the Chairman’s
Statement. During the year, the Group’s mills processed a combined 2.21 million mt of FFB, 4% lower than last year
of 2.31 million mt. CPO production, as a result, was 4% lower at 455,600 mt, compared to 473,200 mt in 2021. Kernel
production at 106,200 mt was 7% lower compared to 114,000 mt in 2021.
Profit before tax and after BA movement from continuing operation for the Group was $132.9 million, 3% lower
compared to a profit of $137.1 million in 2021. The BA movement was a debit of $5.8 million, compared to a credit of
$4.3 million in 2021. The debit BA movement was mainly due to the lower FFB price at 31 December 2022. The profit
before tax included an impairment charge on plantations and impairment of land amounting to $0.6 million compared
to a reversal of impairment charge on plantations and impairment of land amounting to $5.0 million in 2021. Net finance
income recognised in the income statement increased from $3.2 million in 2021 to $4.9 million in 2022 due to higher
deposits income, without interest expense. The tax expense increased from $25.7 million in 2021 to $31.5 million in
2022, notwithstanding the slightly lower profit, because of the utilisation of available losses in a few subsidiaries in
Indonesia in 2021.
The total loss on the discontinued operations was $5.8 million (2021: $28.4 million), made up of operating loss of $0.8
million (2021: $6.7 million). Based on the terms of the potential sale as mentioned in the Chairman’s Statement, there
was further write down of $5.0 million of the three plantations in South Sumatera in 2022 over and above of the write
down of the three plantations’ assets net of liabilities of $21.8 million in 2021. The loss from the discontinued operations
was also impacted by the marginal changes in expected credit loss from Plasma receivables in 2022 (2021: $1.2
million) attributed to the lower amounts allocated for plasma development during the year.
The average CPO price ex-Rotterdam for 2022 was $1,369/mt, 13% higher than 2021 of $1,211/mt. The ex-mill price
for 2022 averaged $845/mt, 9% higher than last year of $776/mt.
Earnings per share before BA movement from continuing operations decreased by 6% to 221.86cts compared to
235.25cts in 2021. Earnings per share after BA movement from continuing operations decreased from 242.34cts to
212.34cts. Earnings per share have decreased mainly due to the decrease in profit after tax.
There was a loss of exchange in translation of foreign operations, recognised in other comprehensive income, totalling
$55.0 million for 2022 against an exchange loss of $5.4 million in the previous year due to the weakening of the
Indonesian rupiah at the year end. The retirement benefits due to the employees at 31 December 2022, as calculated
by a third party actuary, decreased to $10.9 million from $11.5 million last year due to the impact from the weakening
of the Indonesia rupiah and change in attribution method.
Position of the business at the end of the year
The Group’s statement of financial position remains strong, with a cash and cash equivalents balance including short-
term investments (see Note v) of $277.0 million and no external borrowing at the end of 2022. All material changes in
statement of financial position and cash flows are listed in the following table:
Property, plant and equipment
Deferred tax assets
Income tax liabilities
Cash and cash equivalents
Short-term investments
Assets in disposal groups classified as held for sale
Net cash generated from operating activities
Purchase of property, plant and equipment
Net cash used in financing activities
Note
i
ii
iii
v, vi, vii
v,vi, vii
iv
v
vi
vii
31.12.2022
$000
31.12.2021
$000
252,414
1,832
(10,230)
221,476
55,566
9,000
120,511
(34,026)
(9,523)
260,532
4,324
(13,139)
218,249
1,439
13,210
131,346
(26,374)
(1,028)
Annual Report 2022 | Anglo-Eastern Plantations Plc
14
Strategic Report
i. The reduction in property, plant and equipment from $260.5 million in 2021 to $252.4 million was due to the loss
in exchange in the translation of foreign operations.
ii. The movement in deferred tax assets was due to the utilisation of some of the losses against taxable profits during
the year.
iii. The income tax liabilities are lower principally as a result of higher tax payment in 2022. A detailed explanation of
income tax, including other taxes, is provided in note 8.
iv. The assets in disposal groups classified as held for sale was lower due to a further write down of $5.0 million in
2022.
v. As at 31 December 2022, the Group had cash and cash equivalents of $221.5 million (2021: $218.2 million) and
short-term investments known as fixed deposits of $55.6 million (2021: $1.4 million). The cash position, including
fixed deposits, was higher in 2022 principally due to profits during the year and also to a recovery of $29.4 million
from the Indonesian tax authorities for over payment of VAT. The net cash inflow from operating activities during
the year was lower at $120.5 million by 8% compared to $131.3 million in 2021 mainly due to higher tax paid.
vi. The development costs for property, plant and equipment (“PPE”) was higher in 2022 amounting to $34.0 million
(2021: $26.4 million) due to higher capital expenditure and construction costs.
vii. The net cash used in financing activities during the year was higher at $9.5 million compared to $1.0 million in
2021 due to the acquisition of non-controlling interests during the year and higher dividend paid.
Viability Statement
The viability assessment considers solvency and liquidity over a longer period than for the purposes of the going
concern assessment made on page 16. Inevitably, the degree of certainty reduces over a longer period.
The Group’s business activities, financial performance, corporate development and principal risks associated with the
local operating environment are covered under the various sections of this strategic report. In undertaking the review
of the Group’s performance in 2022, the Board considered the prospects of the Company, focusing on the strategy for
growth via the expansion of its planted area in tandem with forecasting demand for CPO, over one to five-year periods.
The process involved a detailed review of the 2023 detailed budget and the five-year income and cash flow projection.
The one-year budget has a greater level of certainty and is used to set detailed budgetary targets at all levels across
the Group. It is also used by the Remuneration Committee to set targets for the annual incentive. The five-year income
and cash flow projection contains less certainty of the outcome but provides a robust planning tool against which
strategic decisions can be made. The Board believes that to project beyond five years has more elements of
uncertainties and therefore less reliable for making informed decisions.
The Board also considered the five-year cash flow projection under various severe but plausible scenarios, including
the financial impact on the Group due to partial or total shutdown of its operations and the contraction of demand for
palm oil resulting from the Coronavirus pandemic or any other contagious diseases, as outlined in the Strategic Report
under Going Concern, and the need to support if any financially loss-making newly matured estates, together with the
projected capital expenditure. The Group also factored in the impact of the price increase of materials and fertilisers
primarily as a result of the conflict in Ukraine. In arriving at the conclusion that the Group has adequate resources to
continue in operation and meet its liabilities in the next five years, the Board has assumed a worst case scenario of
CPO price at its lowest average of $500/mt and that demand for CPO dropped by 50%. The Board has also factored
in that half of the total plantations could be shut down for six months due to infectious disease such as Covid-19. The
assumptions applied are linked to risk of CPO price fluctuation, risk of a substitute for oil palm and a pandemic from
an infectious disease. On this basis and other matters considered and reviewed by the Board during the year, the
Board has a reasonable expectation that the Group has adequate resources to continue in operation and meet its
liabilities over the five years from 2023 to 2027.
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Strategic Report
Going Concern
The Directors have carried out stress tests, factoring in the identified uncertainties and risks such as commodity prices
and demands post pandemic, together with the current economic issues of high inflation, rising interest rates and cost
of living crisis, to ensure that the Group has adequate resources in a worst-case scenario to remain as a going concern
for at least twelve months from the date of this report.
The Directors have a reasonable expectation, having made the appropriate enquiries, that the Group has sufficient
cash resources to cover the Group’s operating expenses for a period of at least twelve months from the date of approval
of these financial statements. For these reasons, the Directors adopted a going concern basis in the preparation of the
financial statements. The Directors have made this assessment after consideration of the Group’s budgeted cash flows
and related assumptions including appropriate stress testing of identified uncertainties, specifically on the potential
shut down of the entire operations from three to twelve months if all the plantations are infected with an infectious
disease as well as the impact on the demand for palm oil with decreases of 50% to 100%. Stress testing of other
identified uncertainties and risks such as commodity prices and currency exchange rates were also undertaken.
Business Review
Indonesia
The performance of the Indonesian operations was divided into six geographical regions.
North Sumatera
FFB production in North Sumatera, which aggregates the estates of Tasik, Anak Tasik, Labuhan Bilik (“HPP”),
Blankahan, Rambung, Sg Musam and Cahaya Pelita (“CPA”) produced 423,900 mt in 2022 about 6% above last year
(2021: 400,800 mt). The higher yield in newly matured estates in Tasik and the increase in matured areas to 18,465
ha from 18,047 ha contributed to the higher production. All plantations in North Sumatera performed better in 2022
except for Musam and HPP where harvest was down by 11% and 5% respectively. The withdrawal of fertilizers for
areas meant for replanting has resulted in a lower yield in Musam while 10% of the trees in HPP were infected with
Ganoderma which has affected the output of fruits. Notwithstanding the lower yield in Musam and HPP, the annual
yield in North Sumatera improved to 22.8 mt/ha from the previous year of 22.2 mt/ha. 115 ha was replanted in Musam
in 2022. Replanting in Blankahan is temporary deferred as the yield had been consistently high in the past years
averaging 26 mt/ha due to good soil condition.
In 2022, the two mills in North Sumatera produced 148,100 mt of CPO (2021:136,900 mt) from a throughput of
738,400 mt (2021: 698,800 mt). The Blankahan mill showed some improvement by processing 24% more FFB in 2022
at 244,500 mt (2021: 196,900 mt) due to higher external crop purchases, raising the mill utilization to 127% from 103%
in the previous year. OER, however, was low at 18.9% (2021: 18.8%) possibly due to the dura contamination from
external crops that made almost 70% of the total crops processed. Dura crops with thinner mesocarp normally have
an oil content of 18% or lower. The Tasik mill processed marginally lower crops at 493,900 mt (2021: 501,900 mt) as
it prioritized its own crop for processing during the export ban as the storage tanks reached their maximum storage
capacity. External crop purchases as a result dropped to 144,700 mt from 177,600 mt in the previous year, reducing
mill utilization from 174% in 2021 to 171% in 2022. OER for the Tasik mill improved to 20.6% (2021: 19.9%) as it
processed higher percentage of internal crop.
The two biogas plants in North Sumatera did not perform up to their potential in 2022, due to the lack of demand and
the reduction in selling price to the National Grid by 9%. The Blankahan plant sold about 6,500 MWh (2021: 1,900
MWh) of surplus electricity and generated $354,100 (2021: $114,100) in revenue. The Group has explored other
opportunities for this plant and has recently commissioned a BioCNG project as explained in greater detail on page 10
of the Chairman’s Statement.
The sales from the biomass plant were lower in 2022 at $23,500 compared to $335,800 last year, with exports of 460
mt of dried long fibres compared to 4,710 mt last year. The average selling price had fallen by 25% due to the significant
drop in demand caused by the zero covid policy in China resulting in disruption in productions and logistics. In view of
the poor demand, the Group decided to cease its biomass production from the second quarter of 2022 as it was no
longer profitable to produce the fibres from EFB.
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Strategic Report
Bengkulu
FFB production in Bengkulu, which aggregates the estates of Puding Mas (“MPM”) and Alno produced 269,500 mt
(2021: 307,400 mt), 12% lower than 2021 mainly due to the reduction of matured palms as a result of replanting.
Rainfall was 3,600 mm in 2022 (2021: 3,500 mm) and was particularly heavy in the last quarter of the year causing
transportation problems and interrupting harvesting activities culminating to a lower yield at 18.1 mt/ha from 19.6 mt/ha
last year.
MPM and Sumindo mills processed a combined 668,500 mt (2021: 807,000 mt) of FFB in 2022, 17% lower than 2021
due to lower internal crop production as well as lower external crop purchases. External crop purchases decreased by
21% to 365,500 mt from 464,800 mt last year decreasing the mill utilization to 116% from 160% in the prior year. The
significant drop in utilization rate was due to the increase of milling capacity of the Sumindo mill from 45 mt/hr to 60
mt/hr. CPO production for the year was 17% lower at 136,000 mt (2021: 164,300 mt) with OER for the two mills
averaging 20.3% compared to 20.4% last year. External crops made up 55% of the throughput compared to 58% in
2021. The remaining processed crop was purchased from other group companies.
985 ha palms were replanted in 2022 with new generation planting materials. Although the trees in Bengkulu averaged
17 to 18 years of age, 5,500 ha of palms would need to be replanted from 2023 to 2026 due to the poor yield from
Dura palms which formed a significant portion of the planted areas. Fruits from dura palms have thin mesocarp which
ultimately produce less oil.
The MPM biogas plant sold over 10,500 MWh (2021: 10,300 MWh) of surplus electricity, 2% higher and generated
$474,700 in revenue (2021: $484,900). The lower revenue was due to a weaker Indonesian Rupiah when translated
into dollar. The biogas plant was down for almost a month as a severe storm in the second quarter of 2022 ripped off
the membrane of the lagoon digester and technicians were unavailable to repair the membrane due to the long festive
holidays.
Riau
FFB production in the Riau region, comprising Bina Pitri estates, produced 135,000 mt in 2022 (2021: 139,600 mt),
3% lower than 2021. Rainfall was lower at 2,480 mm (2021: 2,620 mm) and was below 150 mm per month for three
months. The yield for the year was slightly lower at 28.0 mt/ha from last year of 28.7 mt/ha. Although 79% of the palms
are between the ages of 25 to 28 years, the planned replanting program for 2,800 ha is temporarily deferred due to
their high yield.
Although the mill external crop purchase was higher by 1% at 268,000 mt compared to 266,600 mt last year, the mill
utilization rate decreased slightly to 140% from 141% last year due to the lower internal crop production. Overall, the
CPO production was marginally lower at 77,200 mt compared to 77,500 mt in 2021. Despite the high yield, the region
is contaminated by dura palms which made up 66% of the crops processed by the mill. The mill therefore had a low
OER of 19.2% similarly low of 19.1% in the previous year.
Bangka
FFB production in the Bangka region, comprising Bangka Malindo Lestari estates, produced 12,900 mt in 2022 (2021:
11,100 mt), 16% higher than 2021. The higher crop was due to a larger harvestable area and more palms having
reached peak maturity. Rainfall averaged 1,835 mm in the year with 5 months where rainfall was below 150 mm per
month compared to 2,370 mm previous year. The yield as a result declined slightly from 13.4 mt/ha to 12.1 mt/ha in
2022. With new planting in 2022 totalling 63 ha (2021: 160 ha), the total planting including plasma in Bangka reached
3,099 ha (2021: 3,036 ha).
Kalimantan
FFB production in Kalimantan which comprises the Sawit Graha Manunggal (“SGM”) and Kahayan Agro Plantation
(“KAP”) estates was 273,800 mt in 2022 (2021: 281,500 mt), 3% lower than 2021. During the year, 638 ha of palms
matured in SGM and KAP leading to its first harvest. Production in Kalimantan was lower due to logistics problems
and high incidence of abnormal fruit bunches as mentioned on page 9 of the Chairman’s Statement. The abnormal
fruit bunches were caused by lack of male flowers and as a solution the estate has started breeding and releasing
weevils to help with the pollination. As explained on the Chairman’s Statement, abnormal fruit bunches were stripped
of its fruitlets leaving behind the EFB in the fields resulting in a lower reported harvest. The yield in Kalimantan declined
Annual Report 2022 | Anglo-Eastern Plantations Plc
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Strategic Report
Terracing for replanting of oil palms at Musam
to 18.4 mt/ha from 19.8 mt/ha last year. Wetter-than normal weather prevailed in KAP at 4,794 mm (2021: 4,490 mm)
while rainfall in SGM was also higher at 2,438 mm (2021: 2,320 mm).
New planting in SGM and KAP is expected to reach 800 ha next year. The long-term prospect for Kalimantan remains
bright.
The purchase of external and plasma crops in SGM reached 132,200 mt in 2022 which was higher by 17% compared
to 112,800 mt last year. The total external and plasma crop at the SGM mill made up 33% of the total crops processed
from 29% last year. With the throughput at the mill reaching 402,400 mt (2021: 393,300 mt), the mill utilization rate
decreased to 140% from 182% last year producing 94,300 mt of
CPO, slightly lower than 2021 of 94,500 mt. The decrease in
utilization rate was due to the increase of milling capacity from 45
mt/hr to 60 mt/hr. OER for the mill averaged 23.4% for the year
compared to 24.0% last year and continues to outperform the rest of
the mills in the Group.
The SGM biogas plant generated 15% less electricity in 2022 at over
6,900 MWh (2021: 8,100 MWh) worth $331,000 (2021: $399,900).
The lower power generation was due to the shutdown of the gas
engine in the second quarter of 2022 for a major overhaul after
20,000 hours of operation. A delay in procuring of spare impeller for
the turbocharger further delayed the completion for over a month. As
in the case of Blankahan biogas plant, the National Grid reduced the
rate marginally for electricity purchased from the end of first quarter
of 2022.
Breeding of weevil in SGM
South Sumatera - discontinued operations
FFB production in South Sumatera, which aggregates the estates of Karya Kencana (“KKST”), Empat Lawang
(“ELAP”) and Riau Agrindo (“RAA”) produced 46,300 mt (2021: 37,200 mt), 24% higher than 2021. Better rainfall and
more matured palms contributed to a higher harvest. Low annual moisture remains a real threat in this region which
retards growth as the plantations are located behind a mountain range sheltered from the Indian Ocean. Annual rainfall
in North ELAP increased to 1,399 mm (2021: 1,095 mm). The higher yield of 7.6 mt/ha (2021: 6.5 mt/ha) in South
Sumatera reflected improved conditions but still below the commercially viable benchmark.
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Strategic Report
Steel culvert replaced to improve drainage
With higher CPO prices, more FFB thefts were reported in 2022 as the region faced high unemployment during the
pandemic. The management has stepped-up security patrols to combat thefts and transgression in the plantations in
South Sumatera.
With the continuing problems of rainfall, sub-optimal terrains, security and non productive dialogues with the local
villages, the Board arrived at a decision to discontinue its operations in South Sumatera in 2021 and has put the three
plantations for sale in the open market as a going concern. The Board has arrived at its decision as a result of the low
crop yield which is unlikely to improve and the continuing losses incurred in the region, notwithstanding the significant
investments and efforts over the years. The progress of the sale is covered on page 10 to 11 of the Chairman
Statement.
Overall bought-in crops for the Indonesian operations, including plasma, were 5% lower at 1.08 million mt in 2022
(2021: 1.14 million mt). The average OER for our mills was marginally higher at 20.6% in 2022 (2021: 20.5%).
Malaysia
FFB production in 2022 was 23% lower at 9,300 mt, compared to 12,000 mt in 2021. The plantation continued to
experience a substantial shortage of workers which hampered not only field maintenance and application of fertilisers
but harvesting, resulting in crop losses. Although the international borders reopened in April 2022, attrition of workers
continued until the last quarter of the year. Recruitment for new workers was bogged down by bureaucracy in some
government departments. New workers are expected to arrive in the first quarter of next year. In addition, the under
application of fertilisers at 13% of the recommended dosage resulted in undernourished plants and poor yield. The
palms, with an average age of 25 years, faced declining yield and stems per hectare. The poor yield was also due to
the damage caused by wild elephants. The Malaysian plantation generated a profit before tax after BA movement of
$0.3 million in 2022, compared to a profit before tax after BA movement of $0.4 million in 2021.
The financial performance of the various regions is reported in note 6 on segmental information.
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Strategic Report
Commodity Prices
2022 was a year of two halves for CPO prices, with record prices in the first half of the year followed by much lower
prices for the second half. The price trend was the complete opposite in 2021.
CPO price 2022 vs 2021
$/mt
2,100
1,900
1,700
1,500
1,300
1,100
900
700
Jan
Feb Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Year
2022
2021
The CPO price ex-Rotterdam started the year strongly at $1,350/mt (2021: $1,014/mt) and gradually trended upwards
to peak in March 2022 at $2,000/mt before dropping to a low of $930/mt in early October 2022. It recovered slightly to
end the year at $1,020/mt. Ex-Rotterdam price averaged $1,369/mt for the year, 13% higher than last year (2021:
$1,211/mt). Our average ex-mill price for 2022, which is lower than ex-Rotterdam price with the attributed logistic costs,
was at $845/mt, 9% higher than last year of $776/mt.
The rally in the first three months of 2022 was partly due to the unfavourable weather conditions in prime soybean-
producing countries which adversely affected the supply of soybean oil, of which CPO is the closest substitute. The
war in Ukraine contributed significantly to the increase in CPO prices as it disrupted the global supply of edible oil.
Russia and Ukraine produced the majority of the world’s sunflower oil, which made up about 9% of all vegetable oil
consumed globally. Indonesia, the world largest producer of CPO, imposed an export ban on CPO and refined palm
oil from 28 April 2022 to 22 May 2022, in its effort to bring down the prices of its domestic cooking oil, added more
volatility to CPO prices.
CPO prices started to weaken after Indonesia reversed its export ban in May 2022. The Indonesian government
reduced export tax and waived levies for several months in its effort to flush out and reduce its stockpile of palm oil
following the lifting of the export ban also sent prices even lower. The movement in CPO prices are greatly influenced
by Indonesian government export policy. The higher CPO production in the third quarter of 2022 led to a higher oil
inventories and with the declining soybean oil prices further depressed CPO prices. The fear of worldwide recession
caused by inflationary pressure arising from higher commodity prices also dampened demand for CPO in the second
half of the year. The softening of demand from China, as a result of Beijing’s zero-Covid policy to stop the spread of
virus, weighed in on the commodity prices. China is the second largest buyer of CPO after India. Supply worries due
to heavy rain and floods, disrupting harvest and transport of crops in both Indonesia and Malaysia during the year end
monsoon season, pushed CPO price to close the year on a positive note.
Over a period of ten years, CPO price has touched a monthly average low of $472/mt in November 2018 and a monthly
average high of $1,857/mt in March 2022. The monthly average price over the ten years was about $816/mt.
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Strategic Report
CPO CIF Rotterdam
$/mt
2,500
2,000
1,500
1,000
500
0
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
source: IEG Vu
Rubber prices averaged $1,431/mt for 2022 (2021: $1,637/mt). Our small area of 262 ha of mature rubber contributed
a revenue of $0.6 million in 2022 (2021: $0.7 million). Rubber continues to struggle with low prices. Lower tappable
trees due to wind damage and dry bark were the main reasons for the low rubber production.
Corporate Development
In 2022, the Group opened up new land and planted 952 ha (2021: 1,701 ha) of oil palm mainly in Kalimantan and
South Sumatera, boosting planted area including the smallholder cooperative scheme, known as Plasma, by 1% to
76,095 ha (2021: 75,204 ha). Another 1,100 ha was replanted in Bengkulu and North Sumatera. In 2023, the Group
plans to plant 2,500 ha of oil palm which includes replanting of 1,400 ha in North Sumatera and Bengkulu. Opening of
new land for planting can be cumbersome and requires written approval from local authorities, submission of
environment impact assessments and meetings with local communities. All new plantings are carried out following the
HCSA guidelines and are verified by accredited consultants.
Old quarters for workers throughout the plantations were progressively modernised in 2022 at a cost of $143,000.
Another $1.7 million is budgeted for 2023 for renovations and refurbishments to provide better comfort for workers.
The management has also initiated talks with the relevant authorities to speed up electrification of two remote locations
in Bengkulu and Kalimantan where our plantations are located. The number of users in these locations may, however,
be small and may not justify the high cost of laying transmission lines. As an alternative solution, the management is
looking at the cost of installing solar panels to provide electricity during the day when the generator sets are off to
ensure continuous electricity supply and to ensure comfort of our employees and families. Some $300,000 has been
set aside for this purpose.
The construction of the seventh mill in HPP, North Sumatera has been delayed by frequent lockdowns caused by the
pandemic, affecting the deployment of manpower at the construction site, as well as fabrication of equipment. Unusual
heavy rain in fourth quarter caused flooding and soft soil condition delaying mobilization of heavy machineries for the
construction of effluent treatment tanks. Construction work in exposed areas were stopped frequently to ensure safety
of workers during the periods of heavy rainfall. Cost of construction has spiralled to about $23 million as the mill,
located on peat area has to be built according to strict specifications laid out by environmental laws in Indonesia. The
conventional anaerobic lagoon constructed from earth is not permitted on peat land due to possible seepage of effluent
and contamination of ground water. A purpose-built treatment plant is required to treat the effluent from the mill to a
quality specified for discharge to the water course 7.5km away. The effluent plant also includes two 4,000 mt anaerobic
digesters and two 1,200 mt aeration tanks. A decanter for solid removal and oil recovery was also added to reduce the
number of tanks required which in turn reduced the high cost of concrete piles for its foundation. Steel, cement,
transport and equipment costs have increased substantially driving up the project costs. The project is earmarked for
completion by the first half of 2023.
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Strategic Report
New dump trucks
Our feasibility study concluded that it is more profitable to build a mill in KAP in Kalimantan to support its operation
due to high logistic costs. KAP is currently transporting the FFB some 600km to SGM mill or, when this becomes too
arduous during the monsoon season, the fruits are sold locally to third parties. The Group plans to build a 45 mt/hr mill
with two storage tanks of 4,000 mt each with minimum spare machineries at an estimated cost of $13 million. Due to
the hilly terrain and steep ravines, the choice for a mill site is limited. After careful consideration, a potential site had
been selected. The soil investigation was completed and the Environmental Impact Assessment (“EIA”) is now in
progress which is likely to be completed in the second quarter of 2023. The earthworks will commence after EIA
approval.
To improve transport of FFB in our plantations and help deliver the FFB to the mills, the Group purchased 54 units of
dump trucks costing $1,816,000 in 2022. In 2023 we have budgeted another $741,000. This is necessary amidst rising
logistic cost as independent transport companies especially in Kalimantan cannot supply adequate trucks to transport
our harvest as many trucks are diverted to carry coal which pay better transport rates. In addition, the Group spent
$699,000 to improve the field roads and connectivity between estates and mills by building new bridges. The Group
has budgeted to spend a further $4.7 million in 2023 to improve and maintain our roads for better connectivity.
Two old and worn-out vertical sterilisers/pressure vessels in Bina Pitri mill are in stages of replacement from the third
quarter of 2022 and will be completed in the first half of 2023 at a cost of $370,000. An additional two more units are
scheduled for replacement before the end of next year for the same cost. A similar undertaking will also be conducted
in Sumindo mill costing $280,000 to replace the thinning of sterilizers shell. An additional bulking silo for storing kernel
with a capacity of 400 mt will be built at the Bina mill at a cost of $140,000.
The fabrication and installation of an additional 45,000 kg/hour steam boiler in the SGM mill costing $980,000 was
completed in the third quarter of 2022. This second boiler is required to back-up the mill operation to avoid any
disruption as the mill enters its seventh year of operation. The mill is projected to process up to 400,000 mt of FFB in
2023. Two additional units of vertical sterilizers, complete with FFB feeding and discharge conveyors, will be
constructed in 2023 at an estimated cost of $650,000 to cope with the increase throughput of crops. An additional oil
storage tank with a capacity of 4,000 mt estimated at $275,000 will be added to the present four units to increase SGM
storage capacity to 13,000 mt to avoid over capacity in instances of delays in the collection by tanker ships.
The export ban of CPO early this year has resulted in the costly reduction of external crop purchases in Tasik mill as
it had to prioritise internal crop processing due to limited storage facilities of 5,000 mt. Consequently, the Group has
allocated $275,000 to expand its storage facilities in Tasik mill in 2023.
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Blood donation as part of CSR project
Booster vaccination drive for employees
The construction of the oil recovery system in MPM mill at a cost of $1 million will be completed in the second quarter
of 2023 after some delay in delivery of imported equipment. This system extracts residual oil from raw effluent as well
as reducing fine solid contents in the effluent. The system, when fully operational, is reportedly to be able to improve
the OER by 0.2% to 0.3%. As the mill processes up to 400,000 mt of FFB annually, it could potentially recover up to
800 mt of CPO per year. The reduction of solids in the raw effluent will result in less silting in the effluent treatment
ponds after extraction of biogas in the anaerobic lagoon.
Corporate Social Responsibility
Corporate Social Responsibility (“CSR”) is an integral part of corporate self-regulation incorporated into our business
model. Law 40/2007 of the Indonesian Limited Liability Companies Article 1 Paragraph 3 defines corporate social and
environmental responsibility as the company’s commitment to participate in sustainable economic development in
order to enhance the quality of life and environment to benefit the company, local communities and the general public.
Our Group embraces this responsibility for the impact of its activities on the environment, consumers, employees,
communities, stakeholders and all other members of the public sphere. In engaging the social dimension of CSR, the
Group’s business has taken cognizance of the contribution and further enrichment of its employees while continuing
to make contributions to improve the well-being of the surrounding community.
The Group sustainability policy and commitment to no deforestation and development on peat land, no open burning,
no exploitation, no forced or child labour and other best management practices can be downloaded from the website
under Corporate Governance. The Group also released a statement on the UK Modern Slavery Act 2015 which was
published on the website under the same section.
The majority of employees and their dependents in the plantations and mills are housed in self-contained communities
built by the Group. The employees and their dependents are provided with free housing, clean water and electricity.
The Group also builds, provides and repairs places of worship for workers of different religious faiths as well as schools
and sports facilities in these communities. Over the years, the Group has built a total of seventy-nine mosques and
twenty churches across its estates. During the fasting month, the management team frequently broke fast with the
employees from the estates and mills as well as with surrounding villagers. The Group has also sponsored and donated
cows for sacrifice to celebrate religious festivals. The Group spent $194,900 (2021: $221,300) in 2022 to maintain
these amenities and to support the communal activities.
The Group provides free education for all employees’ children in the local plantations and communities where they
work. The access to education and the spread of knowledge to hundreds of children across remote locations provide
a chance to overcome poverty, whom otherwise may be deprived and without prospect for the future. In addition, the
Group provides computers and funding to construct educational facilities including laboratories and libraries. The
salaries of teachers in the estates and the cost of buying and running the school buses to transport employees’ children
are provided by the Group. Over the years a total of thirty-nine schools, which comprised of twenty-two pre-schools,
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Donation to orphanage
Meeting with stakeholders - CDM Project
eleven primary schools, five secondary schools and one high school were built with a combined current enrolment of
over 4,495 students. In 2022 the responsibility for running one of the primary schools was assumed by the Indonesian
government, after having met the criteria for it to be handed over to the government. It currently employs one hundred
and forty-two teachers on the estates. The Group operated forty-two school bus and spent some $880,950 (2021:
$793,100) in running the schools and operating the buses in 2022.
As part of the Group’s contribution to education, it provides scholarships to qualified students from the communities
as well as our employees’ children to pursue tertiary education. One hundred and thirty-nine children of our employees
were sponsored up to 2022 at a cost of $178,800 (2021: $160,350) since its introduction in 1999, to study in various
universities in Indonesia. The popular courses range from Engineering, Education, Economics to Agriculture. Sixty-
two of these children have successfully graduated from the universities with a number of them now working for the
Group.
The Group continues to provide free comprehensive health care for all its workers as we believe that every employee
and their dependents should have easy access to health services. We have established twenty-three clinics operated
by qualified doctors, nurses and hospital assistants in the estates. The Group upgraded two of its clinics in North
Sumatera and Bengkulu to meet the minimum standard required by the government under the country’s Health and
Social Security Agency. The upgraded clinics also provide health care services to the surrounding community without
the need to travel to faraway cities for medical treatment. With the pandemic on our doorsteps, management have
equipped all the clinics, particularly those in remote locations, with personal protection equipment, ventilators, oxygen
tanks and oximeters. The Group also operates 17 ambulances to support emergency transportation needs within the
estates, mills and surrounding villages. In addition, the Group organised fogging to prevent the spread of dengue
mosquitoes.
The Group continued to impose travel restrictions, unless fully vaccinated, with strict movement control protocols for
workers housed in our mills and estates. Wearing a face mask in confined spaces, in the office and on public transport
is mandatory. Additional facilities are provided for workers to wash their hands with soaps and sanitizers. Workers
feeling unwell, with high temperature will be quarantined and are required to undertake necessary tests conducted by
qualified doctors to determine their condition. The Group also stock up on essential goods and spare parts to minimise
disruption to estates and mills should the government orders a lockdown or imposes further movement controls. With
the reduced Covid-19 cases as a result of the increased vaccination rate, the Group is gradually softening the existing
SOPs to reflect the sentiments of coexisting with Covid-19.
The Group spent a total of $926,000 in 2022 (2021: $987,000) to help surrounding communities, clinics, and public
hospitals with donations in the form of staple food, oxygen tubes, essential medicines, masks, vitamins and other items
related to Covid-19.
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Scholarships awarded to outstanding students
Road improvement
The Group maintains a register of all employees who had been vaccinated and also identified high risk employees with
comorbidities for counselling. Given the higher risk of contracting the Coronavirus for the unvaccinated employees,
the Group has restricted all business related travel for the unvaccinated. At the end of 2022, the Indonesian
government officially announced that the Community Activities Restriction Enforcement, commonly referred locally as
PPKM has ended. People, however, are encouraged to wear mask when using public transport and in closed confined
spaces.
In remote and isolated locations where piped water is not available, the Group drilled tube wells to provide clean water.
Related healthcare expenses for full and part-time field workers including monthly contributions to Health and Social
Security Agency in 2022 were $1.7 million (2021: $1.6 million).
A strong commitment to CSR has a positive impact on employees’ attitudes and boosts employee recruitment. The
Group realises that employees are valuable assets in order to run an efficient, effective, profitable and sustainable
business and operations. Selected employees are given the opportunity to attend seminars and external training to
enhance their working skills and capability. The Group constantly recruits potential field employees who are sent to
the Group’s central training facilities in Blankahan, set up in 2014, to undergo a rigorous twelve-month training
programme which includes theory and practical fieldwork. A total of five hundred and thirty-two employees have
participated in the programme since its inception in 1993 with 35% of participants still working for the Group. Over the
years, one employee has successfully been promoted to General Manager level with another twenty-four being
employed in various senior positions in the head office, plantations and mills.
Separately, the Group also sends their security personnel regularly to training facilities organised by the Police to be
certified.
The Group also recognises its obligations to the wider farming communities in which it operates. The Indonesian
authorities have established that not less than 20% of the newly planted areas acquired from 2007 onwards are to be
reserved for the benefit of the smallholder cooperative scheme, known as Plasma, and the Group is integrating such
smallholder developments alongside its estates. The Plasma development has commenced in stages for its estates in
Sumatera and Kalimantan. Out of the 6,683 ha plasma commitment for the continuing operations, the Group has
planted oil palm in 3,672 ha. For the discontinued operations, the Group has planted 1,068 ha out of the 2,160 ha in
plasma commitment. In 2022 the Group received 45,300 mt of FFB from Plasma schemes compared to 40,700 mt the
previous year. Total revenue generated by Plasma cooperatives was $7.3 million in 2022 against $6.5 million in 2021.
In order to aid the development of Plasma schemes, the Group provided corporate guarantees of over $15 million
through its subsidiaries to local banks to cover loans raised by the cooperatives. The Group also assisted the
cooperatives to obtain the proper land rights certification from the local land office, in which 1,431 ha were approved
and certified until 2022.
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Peat water monitoring
Constant water quality testing in CPA
The Group supported the Kas Desa smallholder village development programme to supplement the livelihood of the
villages. The Group has to-date financed, developed and managed twenty-two smallholder village schemes of oil palm
across four companies. This programme allows the participants to opt out and self-manage. So far, two smallholders
had exited from the program.
In addition, the Group also develops infrastructure such as the construction and repair of bridges and maintained over
243 km of external roads in 2022 at a cost of $3.8 million (2021: $3.7 million). The Group also provided initial aid and
seed capital to villagers such as fruit seedlings, fish fry, cattle and ducks to start community sustainable programs.
The Group started a vegetable farm in a one-hectare site in North Sumatera in 2018 where it planted various organic
vegetables. The produce was sold to employees at subsidized prices to reduce their cost of living as well as to promote
heathy living. It also donated some of the produce to local charitable homes.
The Group leased eight hectares of land just outside Kuala Lumpur, Malaysia and started to clear the land in 2020 to
build greenhouses for organic farming. It aims to produce organic vegetables and fruits in an environmentally
sustainable manner and make them available to consumers at affordable prices as part of its corporate social
responsibility. Substantial part of the produce is donated to orphanages and retirement homes.
Indonesian Sustainable Palm Oil (“ISPO”)
The ISPO certification is legally mandatory for all plantations in Indonesia. In March 2012, ISPO, which is fundamentally
aligned to Roundtable on Sustainable Palm Oil (“RSPO”) principles, has become the mandatory standard for
Indonesian planters. In comparison, RSPO has the most comprehensive social impact assessment requirements and
the strongest measures for biodiversity protection. Even though the Presidential Decree 8/2018 that imposed a
moratorium on forest clearance had expired in 2021, we continue to enforce zero deforestation as outlined in our
Sustainability policy.
A Steering Committee was established to work out a roadmap to support the ISPO implementation at mills and estates.
Workshops and training sessions on occupational safety and healthcare were carried out to inculcate a safety culture
in workplaces at all the estates and mills. The Group compiles and reviews statistics on work related accidents in its
operations. Any incident resulting in fatality or serious injury will be rigorously investigated to identify the cause so that
corrective action can be implemented to prevent future incident. In 2021 the Ministry of Labour awarded six of our
operating companies the Zero Accident Awards in North Sumatera in recognition of the companies’ effort to reduce
accidents at workplaces. In 2022, another two companies received this distinguished Zero Accident Awards. The
Group continued to upgrade its agricultural chemical stores and diesel fuel storage tanks in various plantations and
mills to meet safety and environmental standards.
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BioCNG ground breaking project in Blankahan
Every estate under ISPO is required to have a fire team with each personnel fully trained and equipped with certificate
of competence issued by the fire departments. Our Group conducts a fire drill at least once a year. Watch towers are
constructed in every estate to monitor fire outbreaks. Standard operating procedures were refined and documented
based on sustainable oil palm best practices. The Group also conducts internal audits using an audit checklist adopted
from the above practices to determine the level of compliance.
The Group has worked closely with appointed certification consultants in the implementation of ISPO standard. To-
date thirteen companies have been ISPO certified. The certification audits for the remaining three companies which
fall under discontinued operations have started. The second stage of the certification process, however, cannot
proceed until these companies obtain their land titles or Hak Guna Usaha (“HGU”). ISPO certification provides third
party verification and confirmation that the companies are operating according to national and international standards.
During the year, ISPO certification in one company was renewed after independent audits were carried out. The Group
targets full ISPO compliance by 2023.
The Group intends to embark on RSPO certification once all the companies in the Group are ISPO compliant. The
Group has engaged a third-party consultant to study the feasibility, obstacles, gaps and costs towards a RSPO
compliance. The detailed report was uploaded on our website. The report indicated that substantial resources would
need to be allocated to be RSPO compliant. The Group will continue to review and assess the commercial impact of
RSPO certification, whilst working towards ISPO certification for all its subsidiaries in Indonesia.
The Malaysian plantation was MSPO certified in January 2021.
Environmental, Social and Governance (“ESG”) Practices
AEP believes that the responsible stewardship of our environment is critical in benefiting our consumers, employees,
shareholders and society in general, thus maintaining the industry’s long-term prospects.
The Group has a dedicated sustainability manager based in Medan, Indonesia within an Environmental Health and
Safety (“EHS”) and sustainability department overseen by our Indonesian President Director. On the ground, the
sustainability team is assisted by a team of staff in each of our estates to tackle sustainability-related matters as they
happen. Any issue is communicated to the President Director who will table the issue to the Management Committee
every month for discussion and action. The Management Committee in turn reports to the Executive Committee
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Existing employees’ housing in the estate
Construction of new employees’ housing
comprising of Board members of AEP. The Executive Committee has overall responsibility for the Group’s systems of
internal controls and risk management and for reviewing its effectiveness.
The Board, Executive and Management Committee have visibility and general awareness of climate and nature-related
risks and opportunities. Any plans, objectives and targets related to climate and nature risk are discussed annually, as
well as when the need arises, both through regular engagement with our external sustainability partners and through
the Management Committee who raises any new or material issues. Climate change and nature is a standing agenda
item for the main Board at least once annually and the Management Committee at least twice annually.
The Board monitors and reviews the progress against our sustainability-related targets on an annual basis, including
the carbon reduction target we set in 2021. The Board also oversees reviews of the Group’s corporate governance
policies and initiatives, including our Sustainability Policy which was published in 2019. Our Sustainability Policy aims
to drive change needed in reducing environmental impact, delivering more efficient land use, ensuring social justice
and practicing responsible business across all operations. It embeds policies to mitigate key climate and nature-related
risks. The Group also participates in the Sustainable Palm Oil Transparency Toolkit (“SPOTT”) assessment by the
Zoological Society of London (“ZSL”) that uses publicly available information to annually assess palm oil producers on
the transparency of their commitments to environmental, social and governmental best practice. Apart from aligning
with the Taskforce for Climate-related Financial Disclosures (“TCFD”), we are also early adopters of the Taskforce for
Nature-related Financial Disclosures (“TNFD”).
The palm oil industry has continuously received close scrutiny in the media due to concerns on global warming and
rainforest destruction. Realising this, the Group has adopted a zero deforestation, zero peat planting and zero burning
policy throughout our group. When it comes to replanting, felled palm trunks are chipped, shredded and left to
decompose on the site. This mitigates the release of greenhouse gases commonly associated with open burning
through the traditional land-clearing method of slash-and-burn. Chipping and shredding palm trunks also enriches soil
organic matter and recycles nutrients back onto the soil. Where land is sloping, terraces are built which helps to prevent
landslides and soil erosion, conserve the water and nutrients and provide better accessibility for operations.
Conservation pits and sumps are also constructed to harvest and contain rainwater. Legume cover crops are planted
to minimise soil erosion, preserve the soil moisture and improve soil chemical and physical properties, thus reducing
the use of chemical fertilisers. In mature areas, fronds and EFB are neatly stacked on the inter-rows to allow for the
slow release of organic nutrients while minimising soil erosion. Estates with sandy areas use soft grass, Nephrolepis
biserrata ferns and cut fronds to cover bare ground to increase soil moisture and improve organic matter contents.
The effluents discharged from our mills are fully treated in anaerobic lagoons and aerobic tanks to reduce its biological
oxygen demand (“BOD”). The final discharge is applied to the estate’s land as fertilisers and the BOD is tested regularly
to ensure that it is below the legal limit for land application in Indonesia. The Group is working towards a zero-effluent
policy whereby no by-products from the production of CPO are discharged into rivers.
The Group’s four biogas plants further enhance the treatment of effluents in the mills and at the same time mitigate
greenhouse gas emissions. The trapped biogas is used to generate and supply power to the national grid to reduce
dependency on fossil fuels. The Group has also embarked on a green project with an investor to develop compressed
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Aeration ponds and tanks for treatment of mill effluents
and purified biogas with 96% methane content to diversify the end use of the biogas as explained in the Chairman’s
Statement. Similar undertakings for the Group’s mills, where they are commercially viable are planned and shall be
implemented in stages.
The Group is committed to implementing good agricultural practices as spelt out in its standard operating procedures
for all activities. An Integrated Pest Management system has been adopted to control the population of damaging pests
and to improve biological balance while reducing dependency on chemical pesticides. Barn owls, which are natural
predators, have been introduced to control the rat population, replacing the use of rat baits. Beneficial plants such as
Turnera subulata, Cassia cobanensis and Antigonon leptopus were planted to attract natural predators for biological
control of bagworms and leaf-eating caterpillars.
We are committed to minimise the usage of toxic pesticides and herbicides and will not hesitate to phase them out
once suitable substitutes are available. Our sprayers are regularly trained in the safety and proper spraying techniques
by using judicious dosages. The chemicals are kept in designated storage and examined at regular intervals.
Employees who handle the use of chemicals are provided with on-site washing facilities and undergo medical
examination routinely. The Group enforces standard occupational safety measures like the use of protective suits and
equipment when mixing, loading and applying pesticides which is mandatory by the Manpower and Transmigration
Ministerial Decree No. 08/2010. Managers and employees, risk being penalized and disciplined as safety standards
compliance is audited from time to time. ISPO certified companies are also prohibited from using 36 banned active
ingredients used in pesticides which can cause various health issues in humans and the environment. Highly toxic
pesticides such as Paraquat have been completely eliminated in our plantations. None of the chemicals on the WHO
Class 1A and 1B classification, as well as those that fall under the Stockholm and Rotterdam Conventions are still
used or intended to be used. In the meantime, different cocktails of safer pesticides are being evaluated as alternatives.
The Group has in place a standard operating procedure that requires the management to be informed of instances of
pesticide poisoning among its pesticide applicators.
In order to minimise accidents at workplaces, regular training and refresher courses are held to instill the importance
of safe working practices. Warnings and reminders are displayed at the mills and estates to remind the workers on
their safety. Warning signs are placed at strategic locations such as speed limits in housing estates and warning
against crossing Irish bridges when river water is at a dangerous level.
The Group continues to comply and preserve High Conservative Value (“HCV”) as well as High Carbon Stock (“HCS”)
areas recognised by the Department of Forestry. Every development has gone through the proper environmental
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impact analysis. Environmental impact assessment studies, environment management and monitoring efforts are
retained under the Indonesia Omnibus Law passed in 2020, companies are however no longer required to obtain
environmental license. All HCV and HCS areas were mapped with boundaries clearly marked by independent
surveyors to ensure that the Group does not plant in these sensitive areas. The Group patrols these protected areas
to ensure no encroachment and maintain regular monitoring and management plans to preserve the flora and fauna
of these sensitive areas. The Group has identified about 7,831 ha as riparian reserves and another 4,955 ha as HCV
along with 150 ha as HCS areas within its land. Natural vegetation on uncultivable lands such as deep peat, very steep
areas and riparian zones along watercourses and mangroves are spared from planting in order to preserve biodiversity
and wildlife corridors as well as to check erosion. Peatland is considered to be one of the most efficient carbon sinks
and any burning or drying will release the sequestered carbon dioxide into the air contributing to global warming. The
Group has a strict no-peat policy and no longer plant in peat areas since 2019. Degradation of the mangroves on the
other hand causes coastal erosion and harm biodiversity and economic losses for communities that depend on them
for a living. Progress has been made in recent years to step up environmental protection in Indonesia.
In Indonesia where drought occurs regularly, an emergency response team is set up in every estate armed with the
proper equipment and gear to put out fire and prevent them from spreading during the dry months. Regular training on
fire-fighting techniques and safety is provided by the fire departments. Our estates have also invested in modern
technology by utilising drones to pinpoint areas of fire outbreak whenever they are detected by the watchtowers. These
drones are particularly useful in remote areas where accessibility is restricted. According to Indonesian Law No.
41/1999 on forestry, a deliberate act of forest burning could lead to 15 years imprisonment and a fine of up to Rp5
billion or about $350,000, while negligence act that leads to a forest fire is punishable by a 5-year imprisonment and a
fine of up to Rp1.5 billion or $105,000 for environmental crime. The government is stepping up its enforcement.
All sacred and customary lands are set aside and also preserved by the Group out of respect for the local tribes and
customs to pray and conduct their ritual ceremonies. Some of these locations are posted on the company’s websites.
The six mills in the Group are operating in compliance with criteria set by the Program for Pollution Control Evaluation
and Rating (“PROPER”) overseen by the Indonesian Department of Environment. Many of the criteria set by PROPER
are also part of the ISPO requirement. Four of the mills are officially graded Blue and rated to adhere to the criteria set
for the management of waste and compliance to environmental conservation over water resources, land development,
air and sea pollution and dangerous and toxic waste treatment which impact the environment. The certification of
another mill is currently under the review by the new head of the Indonesian Environmental department. Although no
official grading is required for the remaining one mill, it is in full compliance of the PROPER criteria. All six mills were
certified to ISO 14001:2015 (Environmental Management System) standard. Implementing an environmental
management system can provide the mills, the ability to manage environmental performance through more efficient
use of resources and will also increase the confidence of internal and external parties that the environmental impacts
of its activities have been measured, managed and continuously improved.
Implement social and ecological sustainability criteria
The International Sustainability and Carbon Certification (“ISCC”) is issued by ISCC System GmbH, a global
certification body based in Cologne, Germany. The criteria used in the certification process are:
•
• Monitor deforestation-free supply chains
• Avoid conversion of biodiverse grassland
• Calculate and reduce greenhouse gas (“GHG”) emissions
• Establish traceability in global supply chains
The estates and mill in Tasik Raja were ISCC certified in 2022 and will be re-certified in 2023. The estate and mill in
Blankahan were also ISCC certified in 2022. A certification identifies a company as a responsible player in the industry
that has taken efforts to produce sustainable CPO.
We have finally achieved 100% traceability of external FFB purchased for processing from the suppliers’ farms or
plantations to our mills. The Group maintains a complete database of every one of our smallholders within our supply
chain and know their precise locations, with each arrival to the Group’s mills recorded and its origin verified. By keeping
a close relationship with our suppliers, we are able to not only support them with technical and management expertise,
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but also to inculcate our sustainability policies in their practices. Satellite monitoring of our FFB sources were also
carried out through our FFB buyers to ensure no encroaching into prohibited areas.
More details may be obtained from the Company’s website under our Sustainability dashboard which covers the
Environment, CSR, Workers’ rights and safety, Corporate Governance and Sustainability certification.
Principal and emerging risks and uncertainties
The Board members have sound knowledge of the palm oil industry, including sustainability, and are also aware of the
politics and economics of the business world, especially in the countries where AEP operates.
The Board carried out a robust assessment of the principal and emerging risks facing the Group on an annual basis.
A board paper on risk management, with contributions from Board members on emerging significant business risks, if
any, is discussed at least once a year in conjunction with the risk register. Significant emerging business risks identified
and actions agreed thereon, together with the management of other business risks will be monitored by the Executive
Director who is regularly briefed by the senior management of the Group. The Executive Director in turn briefs the
Audit Committee and the Board whenever they meet.
The Group’s business involves risks and uncertainties of which the Directors currently consider the following to be
material. There are or may be other risks and uncertainties faced by the Group that the Directors currently deem
immaterial, or of which they are unaware, that may have a material adverse impact on the Group.
PRINCIPAL RISKS AT A GLANCE
I
S
S
E
N
S
U
B
N
O
T
C
A
P
M
I
9
6
m
u
d
e
M
i
3
w
o
L
0
Covid-19 & other
contagious diseases
Produce prices
Environmental & Conservation
Practice
Currency exchange rates
Weather and
natural disasters
Other climate
and nature risks
Country, regulatory and
governance practices
Social, community and
human rights issues
Information Technology
Low
Medium
LIKELIHOOD
High
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Nature of the risk and its origin
Circumstances under which the
risk might be most relevant to
the Company
Mitigating
or
considerations
other
relevant
Country, regulatory and governance practices
in
The Group’s operations are located
Indonesia and
substantially
therefore
rely on
significantly
economic and political stability in
Indonesia.
and
upheaval
Political
the security
in
deterioration
situation may cause disruption
loss of
on
management
and
consequently financial loss.
the operation,
control
Introduction of measures to rein in
the country’s fiscal deficits. This
included the exchange controls and
restriction on repatriation of profit
through payment of dividends.
Transfer of profit from Indonesia
restricted
the UK will be
to
affecting
of UK
servicing
obligations and payment of
dividends to shareholders.
The country has recently benefited
from a period of relative political
stability, steady economic growth and
stable financial system. But during the
Asian financial crisis in the late 1990s,
there was civil unrest attributed to
ethnic
in some parts of
Indonesia. The Group’s operations
were not interrupted by the regional
security problems including occasional
racial conflicts.
tensions
The Board is not aware of any attempt
by the government to impose exchange
controls that would restrict the transfer
of profits from Indonesia to the UK. The
Board perceives that the Group will be
able to continue to extract profits from
its subsidiaries in Indonesia for the
foreseeable future.
force
divestment
Could
of
interests in Indonesia at below
market values.
Changes in land legislation. Based
on National Land Agency Law 2 /
1999, mandatory restriction to land
ownership by non-state plantation
companies and companies not listed
in
to 20,000 ha per
province and a total of 100,000 ha in
Indonesia. Mandatory reduction of
foreign ownership of
Indonesian
plantations.
Indonesia
The Group realises that there is a
possibility that foreign owners may be
required over time to partially divest
ownership of
Indonesia oil palm
operations but has no reason to believe
that such divestment would be anything
other than at market value. Since 2021,
foreign
in
Indonesia are allowed to have 100%
ownership in palm oil companies.
companies
operating
Group failure to meet the standards
expected in relation to bribery and
corruption.
Reputational damage and criminal
sanctions.
The Group continues to maintain strong
controls in this area as Indonesia has
been classified as relatively high risk by
the
Transparency
International
Corruption Perceptions index.
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Nature of the risk and its origin
Circumstances under which the
risk might be most relevant to
the Company
Mitigating
or
considerations
other
relevant
Country, regulatory and governance practices - continued
Imposition of import controls or taxes
in consuming and exporting countries.
Efforts by EU to restrict the use of
palm oil and palm biodiesel either by
trade barriers or increased tariffs
including export levy and export tax.
Reduced revenue and reduction
in cash flow and profit. The higher
import levy will raise the price of
CPO and make it less competitive
in the global oil market, thus
reducing demand. Trade barriers
and increased tariffs will make it
more difficult to export palm oil to
EU either
food or palm
biodiesel and will hurt the demand
of CPO in EU which is the third
largest consumer of CPO.
for
The Indonesian government allows
free export of CPO up to 80% of local
production but applies a sliding scale
of duties on exports which allows
producers economic margins. The
export levy collected to fund local
biodiesel subsidies is designed to
support the CPO prices. Higher tariffs
and trade barriers in EU will result in
higher consumption of alternative
vegetable oils despite CPO remaining
amongst the cheapest source and
most productive of vegetable oil in a
growing population.
Currency exchange rates
a
CPO is a US Dollar denominated
significant
commodity
and
proportion of operating costs
in
Indonesia (such as fertiliser and fuel)
and development costs (such as
heavy machinery and mill equipment)
are imported and are US Dollar
related.
Produce prices
Adverse movements of Rupiah
against US Dollar will increase
operating costs and will have a
negative effect on the profitability
and raise funding costs.
inherent
risks are
The Board has taken the view that
these
the
in
business and
that adopting
feels
hedging mechanisms to counter the
negative effects of foreign exchange
volatility are both difficult to achieve
and would not be cost effective.
CPO and palm kernel are primary
commodities and is affected by the
world economy, levels of inflation, and
availability of alternative soft oils such
as soybean oil. CPO price also moves
historically in tandem with crude oil
prices
the
competitiveness of CPO as a source
of biodiesel.
determine
which
This may lead to significant price
swings. The profitability and cash
flow of the plantation operations
depend upon world prices of CPO
and palm kernel and upon the
Group’s ability to sell CPO and
palm kernel at price
levels
comparable with world prices,
unlike soybean which is sown
annually and production can be
increased or decreased to match
demand and prevailing prices.
Directors believe that such swings
should be moderated by continuous
demand in economies like China,
India and Indonesia. Larger exports
would lead to a lower inventory of
CPO which augurs well for future
produce price. In the short term, the
prices and demand will be volatile due
to the pandemic and the ongoing
Indonesia
in Ukraine.
conflict
imposition for local producer to sell
20% of
to domestic
refiners will reduce supply for export
possibility helping to sustain CPO
prices
their output
Annual Report 2022 | Anglo-Eastern Plantations Plc
33
Strategic Report
Nature of the risk and its origin
Circumstances under which the
risk might be most relevant to
the Company
Mitigating
or
considerations
other
relevant
Social, community and human rights issues
Communication breakdown would
cause disruption on the operation
and consequently financial loss.
Access to areas in estates and
mills of disputed compensation is
restricted due to blockages and
illegal encroachment by
the
communities.
Any material breakdown in relations
between the Group and the host
population in the vicinity of the
operations could disrupt the Group’s
operations. The plantations hire
large numbers of people and have
significant economic importance for
local communities in the areas of the
Group’s operations. Disputes over
compensation and rights for land
through
allocated
location permits granted by
the
Indonesian government which were
previously used by the communities
for their livelihood.
the Group
to
local
The Group mitigates this risk by liaising
regularly with village representatives to
mediate on disputes including some
land compensation matters and rights.
It develops a close relationship with
living
improving
villagers by
standards through mutually beneficial
economic and social interaction. The
Group, when possible, gives priority to
applications for employment from the
local population and supports specific
initiatives to encourage local farmers
and tradesmen to act as suppliers to the
their
its employees and
Group,
dependents. The Group
spends
considerable money constructing new
roads and bridges and maintaining
existing roads used by villagers. The
Group also provides
technical and
management expertise to villagers to
develop oil palm plots and Plasma
the operating
schemes surrounding
estates. The returns from these plots
are
villages’
used
community welfare.
improve
to
Deterioration
relationships
shareholders
Indonesian subsidiaries.
or
with
in
disputes
the
in
local
the Group’s
courts
Indonesian
for
Seek
shareholders’
enforcement of
resolving
agreements
disputes. Uncertainties
over
judicial process may result in
financial loss to the Group.
and
The Group endeavours to maintain
cordial relations with local shareholders
by seeking their support for decisions
affecting their interests and responding
constructively to any concerns that they
may have.
Annual Report 2022 | Anglo-Eastern Plantations Plc
34
Strategic Report
Nature of the risk and its origin
Circumstances under which the
risk might be most relevant to
the Company
Mitigating
or
considerations
other
relevant
Covid-19 and other contagious diseases
The Covid-19 pandemic as we are
experiencing has affected national
and world economies, although the
pandemic seemed to be receding
because of
the availability of
vaccines. Covid-19 and similar
pandemics could disrupt the Group’s
operation.
Our plantations and mills could be
infected which may
seriously
require a total shut down of the
infected part of our operations to
contain and eradicate the infection.
However, as the vaccination rate
increased both in Indonesia and
Malaysia
total
shutdown is reduced.
risk of a
the
face mask
The Group continued to impose travel
restrictions, unless fully vaccinated,
and strict movement on workers
in our mills and estates.
housed
Wearing a
for our
employees in confined spaces, in the
transport
office and on public
is
mandatory. Additional
facilities are
provided for workers to wash their
hands with soaps and apply sanitizers.
Workers
feeling unwell, with high
temperature will be quarantined and
undertake necessary tests conducted
by qualified doctors to determine their
condition. The Group also stock up on
essential goods and spare parts to
minimise disruption to estate and mills
operation should the government order
a
further
lockdown or
movement control.
impose
With the reduced Covid-19 cases as a
result of the increased vaccination
rate, the Group is gradually softening
the existing SOPs
the
sentiments of coexisting with Covid-
19.
to reflect
The Group has budgeted cash
requirements on a minimum spend
basis that would sustain the continuity
of the Group for at least twelve months.
The local governments where the
Group operates could enforce a
total lockdown requiring a total
shutdown
the Group’s
operations.
of
Annual Report 2022 | Anglo-Eastern Plantations Plc
35
Strategic Report
Nature of the risk and its origin Circumstances under which the
risk might be most relevant to
the Company
Mitigating
or
considerations
other
relevant
Weather and natural disasters
Oil palms rely on regular sunshine
and rainfall but these weather
patterns can vary and extremes
such as unusual dry periods or,
conversely, heavy rainfall leading
to flooding in some locations can
occur. Indonesia, where most of its
plantations are located, frequently
experience natural disasters like
and
forest
earthquake,
tsunami. Refer to TCFD Report
from page 44 to 45.
fire
Dry periods, in particular, will affect
yields in the short and medium
term. It may result in wildfire that
may damage and destroy
the
palms. Drought induces moisture
stress in palm trees. Conversely
high levels of rainfall can disrupt
estate operations and result in
harvesting delays with loss of FFB
or deterioration in fruit quality.
Delay in collection of harvested
FFB could raise the level of free
fatty acid (“FFA”) in the CPO. CPO
with high FFA would be sold at a
discount to market prices. Low
level of sunshine could result in
delay in formation of FFB resulting
in potential loss of revenue. Any
natural disaster could result in a
shortage of workers and incur
temporary work stoppage due to
damage to the plantation or mill.
Tsunami could wipe off
large
tracking of the plantation resulting
in loss of revenue.
Environmental and conservation practices
Failure to comply and observe
environmental and conservation
practices in its oil palm cultivation
as detailed in the management for
Climate Risk
the Directors’
in
Report.
Reputational and financial damage
through criticisms by conservation
groups and boycott of the Group’s
produces. Government
could
impose hefty fine and penalties for
environmental breach.
Information Technology (“IT”) security risk
Certain
Bunding and platforming is built around
flood prone areas. Canals and retention
ponds are constructed either
to
evacuate surplus water or to maintain
water levels in areas quick to dry out.
Operations located in and near the tropic
can expect adequate amount of
sunshine regularly. Where practical,
natural disasters are covered by
risks
insurance policies.
(including the risk of crop loss through
fire, earthquake and
they
if
materialise could dent
the potential
revenues, for which insurance cover is
either not available or would in the
opinion
be
the
disproportionately expensive, are not
insured. Such risks are mitigated by the
geographical spread of the plantations
but an occurrence of an adverse
uninsured event could result in material
losses.
Directors
flood)
of
The Group is committed to sustainable
development and maintains substantial
to safeguard
reserves
conservation
biodiversity. It has obtained ISPO and
MSPO certifications for most of its
conducts
operations. The Group
impact
independent
assessment studies and complies with
its
any
development begins. The Group has
to advise on
sustainability partners
climate related risks and compliance.
recommendation
environmental
before
The security threats faced by the
Group include threats to its IT
infrastructure, unlawful attempts to
gain
classified
for
information and potential
business disruptions associated
with IT failures.
access
to
to combat cyberattack
Failure
could cause disruption
to our
business operations. Potential loss
including loss of financial records
leading to error or misstatement in
financial statements. Recovery of
lost data can also be expensive.
tools
appropriate
The Group has measures in place
including
and
techniques to monitor and mitigate this
risk. The Group through its IT Consultant
has in place antivirus, threat detection,
log analysis, Distributed denial-of-
service (“DDOS”) attacks protection and
Firewalls.
Annual Report 2022 | Anglo-Eastern Plantations Plc
36
Strategic Report
Climate- and nature-related risks and opportunities
Global concerns about sustainability are steadily rising. Many countries are working to prevent climate change and
nature loss with various targets set to minimise the effects. A Special Report on Climate Change and Land (IPCC,
2019) estimates that agriculture is directly responsible for up to 8.5% of all global GHG emissions with a further 14.5%
coming from land use change. Soil erosion, land clearance and deforestation are major contributors to these emissions.
Indonesia, where AEP predominately operates sits between the Pacific and Indian oceans, is understood to be one of
the 10 countries with the largest agricultural emissions.
Indonesia is also exposed to the naturally occurring El Niño and La Niña climate pattern, globally the most significant
cause of extreme weather. Climate change if not addressed is expected to increase the frequency of more severe
weather ranging from frequent drought and severe floods in the coming years, potentially impacting our operations
and the ecosystems on which we depend.
AEP therefore acknowledges and welcomes the TCFD and the TNFD and the disclosure recommendations as effective
global frameworks for disclosing climate- and nature-related risks and opportunities and improving our strategic
resilience in the face of climate change and nature loss.
This year is our third year disclosing against the eleven TCFD recommendations and we recognise that we are in the
early stages of alignment. This year we have conducted a comprehensive TCFD gap analysis and have a roadmap in
place setting out the steps we will take to improve our alignment with the TCFD’s recommendations over the coming
years. Furthermore, we recognise that nature is core to our business and closely interlinked with climate, in terms of
our impacts, dependencies, risks and opportunities, so we have this year become an early supporter of the TNFD. We
have started our TNFD journey by widening our understanding of the TNFD and synergies with the TCFD framework,
and incorporated into the gap analysis an evaluation of our alignment with the TNFD disclosure recommendations
(TNFD v.03 Beta Release, November 2022). We are currently evaluating the TNFD v.04 Beta Release, March 2023
and will consider developing a roadmap of our action to ensure we develop a holistic approach to risk management
which integrates climate and nature in the future.
The table below signposts where our disclosures currently align with the TCFD and TNFD recommendations, and the
subsequent content highlights our current implemented actions as a business, as well as our plans to move towards
full integration and alignment in the coming years.
Annual Report 2022 | Anglo-Eastern Plantations Plc
37
Strategic Report
Summary TCFD and TNFD alignment table
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Annual Report 2022 | Anglo-Eastern Plantations Plc
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Page 47
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Page 40
Page 48
Page 40
Page 48
Page 41 - 46
Page 49
Page 47
Page 47
Page 48
Page 48
Page 49
Annual Report 2022 | Anglo-Eastern Plantations Plc
38
Strategic Report
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management into our overall business risk management approach. AEP plans
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further information
Page 49
Page 49 - 50
Page number
for
further information
Page 49
Page 49
Page 50
Page 49
Page 50
Page 49
Page 50
Page 49
Page 50
Page 50
Page 50
Page 49 - 50
Strategic Report
Current and future steps on TCFD and TNFD
Governance
Board oversight
Responsibility for ensuring that management operates the business in a responsible manner also lies with the Group’s
Board of Directors (“The Board”). The Board has overall responsibility for the Group’s systems of internal control and
risk management, including climate related risks and opportunities, and for reviewing its effectiveness. The Audit
Committee reviews and monitors specific risks and internal control procedures and reports to the Board where
appropriate.
For climate- and nature-related risks and opportunities more specifically, the Board, Executive and Management
Committee have visibility and general awareness of climate- and nature-related risks and opportunities (i.e. those
identified initially in our climate risk report and which has undergone a high-level review and update each year since).
Any plans, objectives and targets related to climate and nature risk are discussed annually, as well as when the need
arises, both through regular engagement with our external sustainability partners and through Group management
who raise any new or materialising issues. We understand the importance of regular discussion so we will this year
ensure climate change and nature is a standing agenda item for the main Board at least once annually and for the
Management Committee at least twice annually. This will strengthen our current process, ensuring climate- and nature-
related risks and opportunities are fully considered when reviewing strategy, risk management policies and financial
planning.
The Board monitors and reviews progress against our sustainability-related targets on an annual basis, including the
carbon reduction target we set in 2021 (page 51). The Board also oversees reviews of the Group’s corporate
governance policies and initiatives, including our Sustainability Policy. Our Sustainability Policy aims to drive change
needed in reducing environmental impact, delivering more efficient land use, ensuring social justice, and practicing
responsible business across all operations. It embeds policies to mitigate key climate- and nature-related risks. The
policy applies to all current and future AEP Group operating units, including mills, or estates which we own, manage,
or invest in. Related third parties are expected to comply with this policy while being in any trading relationship with
us.
As we progress our alignment with both the TCFD and TNFD in future years, the Board and Management Committee
will be trained as necessary to ensure there is understanding and oversight of AEP’s dependencies and impacts on
nature, and the interdependence of climate- and nature-related risks and opportunities. We have begun this process
this year through a workshop led by our sustainability partners as part of the TCFD and TNFD gap analysis.
Management’s role
Executive staff (part of the Management Committee) and Directors (part of the Board) are responsible for overseeing
the identification and assessment of risks and the implementation of control procedures to manage these risks. The
Management Committee meets monthly to discuss the operation of the business as well as all strategic risks, some of
which are climate- and nature-related. The Management Committee is chaired by the Senior General Manager from
Malaysia who reports to the Executive Committee and the Board. The EHS and Sustainability Department reports to
the Management Committee on material local risks identified by representatives of the Department based at each of
our estates, some of which are climate- and nature-related, and periodically updates on the monitoring of these risks.
In 2023, we will formalise the governance structure for identifying, assessing and managing climate- and nature-related
dependencies, impacts, risks and opportunities within an integrated approach to business risk management. We will
provide training to key members of Group management who have assigned roles for managing risks and monitoring
actions to mitigate key risks. We will ensure this management approach extends beyond material local risks to fully
integrate the management of climate- and nature-related risks that often manifest over medium- to long-term time
horizons.
Annual Report 2022 | Anglo-Eastern Plantations Plc
40
Strategic Report
Strategy
Material climate- and nature-related risks and opportunities
In 2021 we published the results of a consultation with our external sustainability partners to identify and prioritise
Group-level climate-related risks and opportunities. A full re-assessment has not been repeated for the year 2022 as
these risks remain relevant to the business, are understood to not to be materially different from what was assessed
previously, and the defined management approach continues to reflect current business practice. However, as early
supporters of the TNFD, we have this year undertaken a high-level qualitative review of the risks to identify which risks
and opportunities are also nature-related. We have also provided updated information to highlight any minor changes
between 2021 and 2022 (see table below).
We recognise there are likely to be additional nature-related risks and opportunities to those already identified, for
example the impact of sea level rise (a chronic physical risk) or increasing requirements to transition to more efficient,
resilient and less environmentally damaging technologies (a technological transition risk). We will aim to undertake a
thorough review and update of material climate- and nature-related risks and opportunities in 2023. This will have two
primary objectives. Firstly, to extend the assessment beyond ongoing immediate term risk (likelihood of a risk
materialising within a 12-month time frame) to include medium- and long-term horizons. However, many of AEP’s key
risks relate to physical climate change impacts which are already being seen today. We are already taking action to
mitigate these within our business decision-making in terms of crop variety, land management and plantation
monitoring through use of drones. Secondly, to fully incorporate nature-related risks and opportunities. To do this, AEP
will first review the final TNFD framework guidance (expected September 2023) to assess the depth of evaluation that
we are able to undertake in our first year of being early supporters of the TNFD. The TNFD incorporates double
materiality, so nature-related risk and opportunity assessment is expected to be more complex than for climate alone
due to first needing to evaluate AEP’s dependencies and impacts on nature, before assessing material nature-related
risks and opportunities.
Annual Report 2022 | Anglo-Eastern Plantations Plc
41
Management approach
Changes from 2021 to 2022
Strategic Report
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p
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w
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D
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Annual Report 2022 | Anglo-Eastern Plantations Plc
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Annual Report 2022 | Anglo-Eastern Plantations Plc
Except for 3 plantations classified as
discontinued operations, all of our
Indonesian plantations are currently
certified under ISPO. Our Malaysian
plantation has also received the MSPO
certification. Our mills in Tasik Raja
and Ukindo have received the ISCC,
and we have obtained ISO 14001:2015
certification for all our mills to improve
our PROPER rating. The mills are
regularly audited
renewal of
certification. Example, every 1 year for
ISCC, 3 years for ISO 14001 and 4
years for ISPO. We recognise that
certifications are not solely proof of
good practice, so will seek to go further
through
improve
to
Management approach
tracking / audits.
transparency
for
e
h
t
2
4
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Through this annual report we have also
Except for 3 plantations classified as
begun the process of combining our
discontinued operations, all of our
disclosures on both TCFD and TNFD.
Indonesian plantations are currently
certified under ISPO. Our Malaysian
We will await the final release of the
plantation has also received the MSPO
TNFD framework in 2023, and review the
t
i
a
certification. Our mills in Tasik Raja
w
guidance to determine the appropriate
a
and Ukindo have received the ISCC,
management approach and mitigation
w
and we have obtained ISO 14001:2015
D
actions.
F
e
N
certification for all our mills to improve
W
T
our PROPER rating. The mills are
regularly audited
renewal of
certification. Example, every 1 year for
ISCC, 3 years for ISO 14001 and 4
years for ISPO. We recognise that
g
certifications are not solely proof of
n
i
n
t
r
good practice, so will seek to go further
a
o
e
p
p
e
through
improve
to
o
R
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tracking / audits.
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transparency
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for
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Through this annual report we have also
begun the process of combining our
U
disclosures on both TCFD and TNFD.
E
y
p
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D
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C
b
a
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“
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We will await the final release of the
TNFD framework in 2023, and review the
guidance to determine the appropriate
management approach and mitigation
actions.
-
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g
n
A
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|
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S
Risk identified as being a climate- and nature-related risk,
as there are increasing regulations aimed at achieving
nature-positive outcomes.
to gain
further sustainability
We have continued
certifications for some of our estates and mills. The current
list of sustainability certifications is available on our website
https://www.angloeastern.co.uk/sustainability/sustainability-
certification.
In 2022, we have advanced our actions to implement and
disclose against the TCFD, undertaking a thorough gap
analysis to inform a roadmap of action from 2023 onwards.
We have also developed our understanding of the TNFD
and are early supporters of the framework.
Changes from 2021 to 2022
Risk identified as being a climate- and nature-related risk,
as there are increasing regulations aimed at achieving
nature-positive outcomes.
to gain
further sustainability
We have continued
certifications for some of our estates and mills. The current
list of sustainability certifications is available on our website
https://www.angloeastern.co.uk/sustainability/sustainability-
certification.
In 2022, we have advanced our actions to implement and
disclose against the TCFD, undertaking a thorough gap
analysis to inform a roadmap of action from 2023 onwards.
We have also developed our understanding of the TNFD
and are early supporters of the framework.
Management approach
Changes from 2021 to 2022
Strategic Report
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As tenders are performed on a weekly
basis we do not find ourselves overly
reliant on a single customer. We
ensure transparency in our palm oil
production practices through annual
disclosure to SPOTT and certification
as detailed above.
.
e
g
n
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c
We communicate regularly with buyers
and capital providers, to understand
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investigated the value of RSPO to the
business. Our financial position also
currently negates
for
financing through bank loans.
the need
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We have signed long term contracts
with an investor to construct BioCNG.
As tenders are performed on a weekly
The plant uses methane produced from
basis we do not find ourselves overly
mills to generate renewable fuel which
reliant on a single customer. We
is used to replace diesel in industrial
ensure transparency in our palm oil
use. BioCNG can also be used in
production practices through annual
trucks carrying FFB within our estates.
G
disclosure to SPOTT and certification
N
This can provide a reputational benefit,
C
as detailed above.
o
increased operational resilience, and
B
new revenue streams.
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y
n
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m
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mills to generate renewable fuel which
is used to replace diesel in industrial
use. BioCNG can also be used in
trucks carrying FFB within our estates.
This can provide a reputational benefit,
increased operational resilience, and
new revenue streams.
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43
n
Annual Report 2022 | Anglo-Eastern Plantations Plc
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%
Annual Report 2022 | Anglo-Eastern Plantations Plc
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Risk identified as being a climate- and nature-related risk as
there may be increasing preference for products that are
nature positive/ have lower impacts on nature.
is
available
The RSPO gap analysis was completed in February 2022
and
https://www.angloeastern.co.uk/sustainability/sustainability-
certification. The report indicated substantial resources are
needed for RSPO certification. The Group continues to
review the commercial impact of RSPO certification.
website
our
on
Changes from 2021 to 2022
Opportunity identified as being a climate- and nature-related
opportunity as there may be increasing preference for bio-
Risk identified as being a climate- and nature-related risk as
based materials like palm oil (as an alternative to fossil-
there may be increasing preference for products that are
based inputs).
nature positive/ have lower impacts on nature.
is
available
No significant change.
The RSPO gap analysis was completed in February 2022
and
https://www.angloeastern.co.uk/sustainability/sustainability-
certification. The report indicated substantial resources are
needed for RSPO certification. The Group continues to
review the commercial impact of RSPO certification.
website
our
on
Opportunity identified as being a climate- and nature-related
opportunity as there may be increasing preference for bio-
based materials like palm oil (as an alternative to fossil-
based inputs).
No significant change.
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Annual Report 2022 | Anglo-Eastern Plantations Plc
Management approach
Changes from 2021 to 2022
Four of our mills are equipped with biogas
plants
to capture biogas and generate
electricity for sale to the state authorities. This
also reduces the need to purchase diesel for
our estates, as they are instead supplied power
by the grid, therefore reducing our emissions.
The mill in Tasik Raja has been certified for
CDM in 2022. This will enable AEP to
market the Carbon Emission Reductions
(“CERs”). Another mill in Bina Pitri Jaya
estate is in the process of obtaining CDM
certification while the mill in Alno estate is
still in the early stage of the process.
areas
prone
Where appropriate, bunding is built around
flood
and
canals/drainage/retention ponds and water
gates are constructed and adapted
evacuate surplus water. Riparian reserves are
also protected to mitigate flood risks. Where
the land is undulating, we build terraces for
planting which helps to prevent landslides,
ensures that water runs off into groundwater
Management approach
stores, conserves nutrients effectively, and
provides better accessibility for operations.
Where practical, natural disasters are also
Four of our mills are equipped with biogas
covered by insurance policies.
plants
to capture biogas and generate
electricity for sale to the state authorities. This
also reduces the need to purchase diesel for
our estates, as they are instead supplied power
by the grid, therefore reducing our emissions.
4
4
Identified as being a nature-related risk or
opportunity as heavy rainfall / flooding can
change the state (condition and/or extent)
to
of ecosystems on which AEP depend for
ecosystem services.
Extreme rainfall of more than 3,000 mm per
annum in 2022 has caused severe flooding
in Central Kalimantan and Bengkulu which
Changes from 2021 to 2022
disrupted FFB crop evacuation and
harvesting operation which reduced crop
production. Local authorities also barred
The mill in Tasik Raja has been certified for
the use of public roads in some months due
CDM in 2022. This will enable AEP to
to heavy damages caused by incessant
market the Carbon Emission Reductions
rain and heavy usages especially by heavy
(“CERs”). Another mill in Bina Pitri Jaya
trucks carrying coal.
estate is in the process of obtaining CDM
certification while the mill in Alno estate is
still in the early stage of the process.
Identified as being a nature-related risk or
opportunity as heavy rainfall / flooding can
change the state (condition and/or extent)
to
of ecosystems on which AEP depend for
ecosystem services.
Extreme rainfall of more than 3,000 mm per
annum in 2022 has caused severe flooding
in Central Kalimantan and Bengkulu which
disrupted FFB crop evacuation and
harvesting operation which reduced crop
production. Local authorities also barred
the use of public roads in some months due
to heavy damages caused by incessant
rain and heavy usages especially by heavy
trucks carrying coal.
prone
Where appropriate, bunding is built around
flood
and
canals/drainage/retention ponds and water
gates are constructed and adapted
evacuate surplus water. Riparian reserves are
also protected to mitigate flood risks. Where
the land is undulating, we build terraces for
planting which helps to prevent landslides,
ensures that water runs off into groundwater
stores, conserves nutrients effectively, and
provides better accessibility for operations.
Where practical, natural disasters are also
covered by insurance policies.
areas
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and medium term through moisture stress and
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can result in wildfires that may damage the
fires and haze,
forest
drive widespread
palms. Drought events are localised to our
although the severity of El Nino events appears
Kalimantan and South Sumatera estates,
to be decreasing as a result of changing
where long droughts (>3 months) can affect
climatic conditions. The financial impact of fire
soil quality and lead to a lower yield the
damage is relatively low to the Group due to
following year (~10-15% decrease at most).
of
geographical
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plantations.
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Identified as being a nature-related risk
(see rationale).
Climate experts project that La Nina is
weakening and there is likelihood of El Nino
appearing in the 2nd half of 2023 which
may cause forest fire and drought in
Indonesia.
Changes from 2021 to 2022
Identified as being a nature-related risk as
fire can change the state (condition and/or
Identified as being a nature-related risk
extent) of ecosystems (e.g. tropical forest,
(see rationale).
peat) on which AEP depend for ecosystem
services.
Climate experts project that La Nina is
weakening and there is likelihood of El Nino
No significant change.
appearing in the 2nd half of 2023 which
may cause forest fire and drought in
Indonesia.
Identified as being a nature-related risk as
fire can change the state (condition and/or
extent) of ecosystems (e.g. tropical forest,
peat) on which AEP depend for ecosystem
services.
No significant change.
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Legume cover crops are planted to minimise
soil erosion, preserve soil moisture and
improve soil chemical and physical properties.
In mature areas, fronds and EFB are placed
inter-rows to allow the slow release of organic
nutrients while minimising soil erosion.
Conservation pits and sumps are constructed
to harvest and contain rainwater, whilst the
spreading of oil mill effluent in lines provides a
water storage medium.
‘Terracing’ also
ensures that water runs off into groundwater
stores. We are also closely
following
developments of drought-resistant oil palm
varieties.
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Management approach
Fire response crews are stationed in each
estate, with regular training on firefighting
Legume cover crops are planted to minimise
techniques and safety provided by local fire
soil erosion, preserve soil moisture and
departments. Ditches and boundaries are
improve soil chemical and physical properties.
created to prevent the spread of fire, whilst
In mature areas, fronds and EFB are placed
watch towers have been built in every estate to
inter-rows to allow the slow release of organic
pinpoint outbreaks of fire as soon as smoke is
nutrients while minimising soil erosion.
detected. The Group has also invested in
Conservation pits and sumps are constructed
drones to pinpoint outbreaks of fire where
to harvest and contain rainwater, whilst the
accessibility is restricted. Where practical,
spreading of oil mill effluent in lines provides a
natural disasters are also covered by
water storage medium.
‘Terracing’ also
insurance policies.
ensures that water runs off into groundwater
stores. We are also closely
following
developments of drought-resistant oil palm
varieties.
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Fire response crews are stationed in each
estate, with regular training on firefighting
techniques and safety provided by local fire
departments. Ditches and boundaries are
created to prevent the spread of fire, whilst
watch towers have been built in every estate to
pinpoint outbreaks of fire as soon as smoke is
-
o
detected. The Group has also invested in
g
n
drones to pinpoint outbreaks of fire where
A
accessibility is restricted. Where practical,
natural disasters are also covered by
insurance policies.
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Annual Report 2022 | Anglo-Eastern Plantations Plc
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Ganoderma boninense has infected some
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Changes from 2021 to 2022
Identified as being a nature-related risk
(see rationale)
Ganoderma boninense has infected some
10% the total palm trees in HPP estate in
North Sumatera, resulting in around 5%
reduced yield in 2022 when compared
against 2021
Pest and disease events are localised, with
early-warning provided by supervision and
monitoring, and generally impact immature
palms. Outbreaks are managed
through
biological controls, such as the planting of
beneficial plants that host natural predators to
divert bagworms from oil palms, and the
introduction of barn owls to control rats.
Individual estates have also been replanted
with more resistant anti-Ganoderma material
to reduce the threat of stem rot. A variety of
planting materials are also being considered to
provide variability and pollens, to mitigate
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required.
Management approach
6
4
Pest and disease events are localised, with
early-warning provided by supervision and
monitoring, and generally impact immature
palms. Outbreaks are managed
through
biological controls, such as the planting of
beneficial plants that host natural predators to
divert bagworms from oil palms, and the
introduction of barn owls to control rats.
Individual estates have also been replanted
with more resistant anti-Ganoderma material
to reduce the threat of stem rot. A variety of
planting materials are also being considered to
provide variability and pollens, to mitigate
changes to pollinating insects, and hand
pollination can also be carried out where
required.
46
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Annual Report 2022 | Anglo-Eastern Plantations Plc
46
Strategic Report
Risk and opportunity impacts on our business, strategy and financial planning
Climate- and nature-related risks and opportunities impact three key areas of the business: our products, our supply
chain and our operations.
Products
The adverse perception of palm oil as an environmentally unfriendly and non-renewable source, particularly in
the EU, continues to feature in recent years, touching on issues including deforestation, emission of greenhouse
gases, planting on peatland and land rights. AEP is committed to ensuring that our products are produced in a
sustainable way. This is realised by not clearing forests (zero deforestation), not planting on peat (zero peat)
going forward, respecting and protecting human rights, and committing towards the traceability of our products.
Supply chain
Severe adverse weather conditions, such as tropical storms, can result in extended business interruption through
disruption to our supply chain and to local transportation services. For example, FFB produced in KAP are sold
to local millers (rather than primary customers more than 600km away) during the wet season. This is because
transport time more than doubles as lorries are frequently stuck in mud as untarred public roads are easily
damaged by incessant rain and floods. The Group has completed its site selection to build the KAP mill and
applied for the relevant approvals and permits required to start the construction of the mill in H1 2023.
To progressively reduce the greenhouse gas emissions per metric ton of CPO produced in the next few years,
the Group plans to construct biogas plants at our remaining palm oil mills where there is a demand for electricity,
on top of our four existing biogas plants. Our plants trap the biogas from the anaerobic treatment of the palm oil
mill effluent and generate electrical power. We also plan to construct BioCNG plants which produces compressed
and purified biogas for customers who are committed to use renewable energy. In remote mills where there is no
commercial option for the biogas then the methane will be flared to reduce the emission of GHG.
The Group consistently practices good agricultural practices such as zero burning, integrated pest management,
soil and water conservation and recycling of biomass. When it comes to replanting, the old palms felled are
chipped and shredded and left to decompose at the site. This mitigates the greenhouse gas emissions commonly
associated with open burning when land is cleared through the traditional method of slash-and-burn. It also
enriches the organic matter in the soil and recycles nutrients back onto the soil.
Our sustainability policy (available at https://www.angloeastern.co.uk/sustainability/corporate-governance) also
provides additional information on the commitments we have made which will reduce the likelihood and/or impact in
some of our key risk areas. As we continue to implement additional actions to improve TCFD and TNFD alignment,
we will update our policy as relevant, including for example our response to the emergence of new risks and
opportunities as well as further sustainability-related metrics and targets.
The impact of climate- and nature-related issues on our financial performance has not yet been assessed. However,
we have this year improved our score in the ZSL Sustainability Policy Transparency Toolkit (“SPOTT”) assessment by
5.7%. This is an external stakeholder facing assessment that investors and buyers use to assess their investment or
purchasing decisions. This increasing score enhances AEP’s position in the market, including access to capital.
AEP will undertake climate scenario analysis (“CSA”) in 2023 which will provide a quantitative and qualitative
assessment of the impact on financial performance (e.g., revenues, costs), financial position (e.g., assets, liabilities)
and business strategy, of our most material climate- and nature-related risks. We will use the CSA process to develop
robust mitigation strategies for risks and opportunities to ensure there is appropriate management over medium- and
long-term time horizons.
Resilience of our strategy
AEP have not yet conducted a CSA exercise, but we recognise it as a vital step to help build climate- and nature-
related strategic resilience and inform financial planning. Most of our own climate- and nature-related impact is driven
by our use of forest, land and agriculture (“FLAG”). We are aware of the new/emerging accounting and target setting
guidance for the land sector, both from the GHG Protocol and the Science Based Targets Initiative (“SBTi”). These
new standards will likely shift how our competitors and customers view and account for climate and nature impacts,
thereby potentially changing the context in which we operate as a business.
Annual Report 2022 | Anglo-Eastern Plantations Plc
47
Strategic Report
This guidance is likely to impact how we construct CSA given that much of our exposure is expected to be physical
FLAG risks. AEP will ensure our approach to CSA in 2023 is informed by this guidance.
Ecosystem interactions
AEP recognise that the TNFD includes an additional, specific disclosure requirement under the strategy pillar relating
to our interactions with low integrity and high importance ecosystems or areas of water stress. AEP operates in HCV
areas and obtains various certifications for some of our estates and mills, and we ensure these areas of high
importance are managed appropriately through actions outlined in our Sustainability Policy and/or by the certification
body.
AEP is committed to the development of the Group-wide NDPE policy that development of plantations is only done
after completion of the HCV-HCS assessment. We are also committed to address the issue of non-compliance
development which was done in the past.
AEP decided to implement the Re-Entry Requirements in order to compensate for the non-compliant land development
and engaged Earthqualizer (“EQ”), a reputable non-profit organisation with international experience dedicated to the
sustainable management of natural resources, to implement the Re-Entry Requirements. EQ has assessed the
Recoverability Liability of AEP and developed a Recovery Plan whereby EQ will assist AEP to identify and implement
at recovery sites. The proposed area in the Recovery Plan involves engaging in the local Social Forest Schemes in
the district of Muko Muko, Bengkulu which is close to our Air Ikan Estate. This area totals 5,578 Ha and has a high
biodiversity value for Rare, Threatened and Endangered (“RTE”) species. The whole project development plan will
take about two years and upon adopting the Recovery Plan, AEP will continue to implement them in the Social Forest
Scheme.
We will aim in the short-term to map the ecosystems that we operate in or near, referencing the location and type of
ecosystem (i.e. tropical rainforest). However, further guidance is required than what is currently available within the
reference sources and indicators signposted in the TNFD’s LEAP approach to help AEP take action and disclose these
interactions. We will await final release of the TNFD framework in 2023 and review the guidance to determine
appropriate further action and timelines for implementation and disclosure.
Risk Management
Identifying and assessing dependencies, impacts, risks and opportunities
The climate- and nature-related risks and opportunities outlined in Strategy above were identified and prioritised in
collaboration with our external sustainability partners. A cross-functional working group involving senior managers and
Directors from across AEP were involved in this process. Stakeholders were surveyed to understand the relative
materiality of a range of physical and transition risks. Materiality was defined by calculating a risk score based on the
relative frequency or likelihood of a risk materialising in a 12-month period, and the potential magnitude of impact
based on expected change in operating profit. A workshop with senior managers and Directors was facilitated by our
sustainability partners to determine how the business expects these risks to change over time, with relevant risk
mitigation and adaptation measures identified.
We have made a commitment to conduct a formal re-evaluation of this risk assessment every three years, with a
review and qualitative assessment occurring in the intervening years, as is the case this year. Regulatory changes are
reviewed annually as we recognise that these are faster moving than many of our other, primarily physical risks. As
detailed in Strategy above we intend to include a view of medium- and longer-term risk horizons, together with the
inclusion of nature-related dependencies, impacts risks and opportunities, within the next formal re-evaluation in 2023.
Within each review, we ensure AEP’s Board and management are involved to ensure there is ongoing risk oversight
to identify and assess new risks or determine if there are changes to materiality.
At an operational level, our managers of estates and mills also identify and assess risks, some of which are climate-
and nature-related, on an ongoing basis. This approach to risk management is largely guided by our requirements
under various standards and certifications at some of our estates and mills, for example ISO14001:2015, PROPER,
ISPO and ISCC. AEP recognises the need to identify the elements of climate- and nature-related risk management
within these, and ensure staff have a robust understanding of this to ensure a holistic and integrated approach to
company-wide risk management.
Annual Report 2022 | Anglo-Eastern Plantations Plc
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Strategic Report
Managing dependencies, impacts, risks and opportunities
AEP is committed to ensuring we have a robust internal process, with clear stakeholder responsibilities identified, to
mitigate, transfer, accept, and/or control of climate- and nature-related risks. A management approach for each of the
key climate- and nature-related risks and opportunities is detailed in the table included in Strategy above (page 42 to
page 46).
Where risks are directly linked to short-term operational management, they are recorded by Group management and
given a priority score dictated by their individual risk (a high, medium or low score depending on, for example, individual
estate risk of flooding or drought which varies by geographic location). Our Engineering Director has oversight of the
management approach across all of our mills and our Chief Operating Officer has oversight across all of our
plantations. Both individuals discuss these risks with our Group Sustainability and EHS Manager who, from 2023, will
report the sustainability agenda (including risks) to the Management Committee quarterly. This ensures there is Group-
level oversight and sign off of risk mitigation activities at each site, and discussion to review progress towards
management activities and to determine any resultant change in risk profile. The Sustainability and EHS Manager also
performs an annual review of risks, as well as updating the Group-wide risk register continuously, or as new regulations
or updates occur.
We will continue to develop our risk management approach by improving transparency of our climate- and nature-
related risk management approach. This will include additional detail on how and where specific management activities
have been implemented, and how these actions have changed the inherent risk and potentially the materiality of risks
and opportunities identified.
Integration of climate and nature into overall risk management
Climate- and nature-related risk management is not yet fully integrated into AEP’s overall risk management processes.
However, the same stakeholders are involved with both processes and both processes have Board oversight. In the
short-term AEP commit to reviewing and updating business risk management processes to fully integrate climate- and
nature-related risks.
This year, we have increased the frequency of company-wide risk review and update, to twice annually by the
Management Committee and a formal review by the Board at least one annually. Furthermore, we now recognise both
climate and nature as business principal risks which provides a first step in integrating these risks into overall risk
management.
AEP recognise that there are two additional TNFD-specific disclosure requirements under the risk management pillar
relating to:
1) our approach to locate the sources of inputs used to create value that may generate nature-related dependencies,
impacts, risks and opportunities; and,
2) how stakeholders, including rightsholders, are engaged in our assessment and response to nature-related
dependencies, impacts risks and opportunities.
Only limited guidance is currently available for these disclosure recommendations so we will await the final release of
the TNFD framework in 2023, and review the guidance to determine appropriate further action and timelines for
implementation and disclosure.
Metrics and Targets
Metrics to assess climate- and nature-related risks and opportunities
AEP utilise several key metrics to manage risk and opportunity within the business. We use our annual GHG reporting
to assess the impact of business decisions (in metric tonnes CO2e). This is evaluated in line with the GHG Protocol
Corporate Accounting Standard, alongside other industry standards and guidance as referenced in our SECR report
(page 50 to page 54). Our carbon intensity metrics (metric tonnes CO2e per hectare of planted area, per tonne FFB
produced and per tonne CPO produced) are useful to indicate the impact on business efficiency throughout the year.
These intensity metrics also indirectly indicate the potential impact of certain physical risks such as droughts or
excessive rainfall.
Annual Report 2022 | Anglo-Eastern Plantations Plc
49
Strategic Report
Other sustainability-related metrics help us to manage key climate- and nature-related risks and opportunities,
including metrics we gather for our certifications (e.g., ISPO and MSPO), HCV areas, waste production, water
consumption and global cost premiums for certified palm oil products (e.g., RSPO) to evaluate the risk or opportunity
of changing market preferences. In 2023, we plan to calculate scope 3 emissions considering new/emerging guidance
for the land sector (SBTi-FLAG and GHG Protocol Land Sector and Removals guidance).
Through the planned review and update of climate- and nature-related risks and opportunities in 2023 (as described
in Strategy above), we will identify further appropriate metrics to link to these risks and opportunities and seek to
provide both historical trends and forward-looking projections.
Metrics and related impacts and risks
AEP report scope 1, 2 and selected scope 3 emissions in line with the SECR regulation (see page 50 to page 54 for
this year carbon reporting). Currently our scope 3 emissions include electricity transmission and distribution, 3rd party
vehicles and the land-related emissions from the outgrower crops that we purchase and process in our mills. The new
GHG Protocol guidance on the land sector is likely to change how these land-related emissions should be reported
(including in our scope 1) so we have planned to undertake a review of our methodology in 2023 following the release
of the guidance (expected in April 2023). We do not yet report on our full scope 3 emissions, so the methodology
review will be undertaken in combination with a scope 3 screening exercise.
As described above, we have some additional nature-related metrics through our legal obligations and certifications at
some of our estates and mills, including HCV, ISPO, PROPER, ISO14001 and ISCC. However, we will await the final
release of the TNFD framework in 2023 and review the guidance to determine appropriate further action.
Targets for dependencies, impacts, risks and opportunities
AEP has set a target to reduce absolute scope 1 and 2 emissions by 20.5% by 2030 from a 2019 baseline (see further
information in our SECR report on page 51). We commit to reporting progress towards this target each year, and
revisiting its appropriateness and ambition on a regular basis to maintain its value to our business and stakeholders.
As we gather further trend data using our existing metrics and from planned new metrics, we aim to set other
sustainability-related targets as appropriate, e.g., for water consumption and waste production. We will then disclose
and report progress against these targets. Furthermore, upon completion of the emissions reporting methodology
review and calculation of scope 3 emissions, we will explore the feasibility of setting SBT's (including SBTi-FLAG and
exploring guidance from the Science Based Targets Network for climate and nature targets).
Only limited guidance is currently available in the TNFD draft guidance v0.3 for the proposed TNFD-specific disclosure
recommendation to “Describe how targets on nature and climate are aligned and contribute to each other, and any
trade-offs”. AEP will therefore await the final release of the TNFD framework in 2023 and review the guidance before
determining appropriate further action.
Carbon Reporting
AEP recognises that our global operations have an environmental impact and we are committed to monitoring and
reducing our emissions year-on-year. We are also aware of our reporting obligations under The Companies (Directors’
Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. As such, we continue to
report on our energy and carbon performance and are committed to transparent communication about our
environmental impact to our stakeholders.
2022 Performance Summary
AEP’s total carbon emissions have reduced by 14% in 2022 from 2021. This is primarily due to a reduction in direct
land clearance activities (-8% drop in emissions driven by Pangeran Estate, RAA Estate and Sei Musam Estate) and
outgrower land clearance (-11%). As an agricultural business, our carbon footprint is closely linked to our land
management and planting practices.
The decrease in emissions has been partly explained by an increase of carbon dioxide sequestered across our estates,
rising 4% in 2022. This increase in sequestration is due to the age profile of our estates, as oil palm at the beginning
Annual Report 2022 | Anglo-Eastern Plantations Plc
50
Strategic Report
and nearing the end of its crop cycle does not have as great a sequestration potential as those in the middle of the
lifecycle.
Our operational emissions have decreased by 3% in 2022, driven by a decrease in fuel use (diesel and biomass) and
POME treatment. Biomass emissions decreased 35% since 2021, driven by a decrease in consumption (-6%)1 and a
decrease in the biomass emissions factor (-44%)2. Our overall production of CPO decreased by 4%, which has driven
the 5% decrease in emissions from the treatment of the effluent.
Our overall transport emissions have increased, caused by onsite transport increasing 14% due to additional vehicles
in operation during 2022. Emissions from fertiliser use has increased by 37% in 2022, which is driven by the
introduction of Double Ammonium Phosphate fertilizer during the reporting period.
Energy and Carbon Action
In the period covered by the report AEP has undertaken the following emissions and energy reduction initiatives:
•
Connection to the national grid and utilisation of electricity generated from biogas engines across a number of
estates to reduce the power generated from the diesel generators.
We have reviewed our past carbon footprint performance and conducted an exercise to establish specific emissions
reduction targets for the business. We are aware of upcoming changes in best practice guidance, both in the form of
the GHG Protocol Land Sector and Removals guidance and across wider target setting guidance. We will review our
approach once this guidance has been finalised and released over the course of 2023.
Metrics and Targets
AEP commits to a reduction in absolute scope 1 and 2 emissions by 20.5% by 2030 from a 2019 baseline. This target
does not include the impact of sequestration on site, as activity on this is limited by the age profile of our crop.
In 2022 our scope 1 and 2 emissions (excluding sequestration) were 2% higher than in 2019. We have identified the
key areas we need to take action as a business to achieve this target, including the conversion of our remaining mills
to biogas plants from anaerobic lagoons, limiting our land clearance levels, implementing a no new peat policy and
investigating our peat management processes, particularly regarding management of drainage depths.
We commit to reporting progress towards this target each year, and revisiting its appropriateness and ambition on a
regular basis to maintain its value to our business and stakeholders.
2022 Results
Methodology
The methodology used to calculate the GHG emissions is in accordance with the requirements of the following
standards:
• World Resources Institute (“WRI”) “GHG” Protocol (revised version)
• Defra’s Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting requirements
(March 2019).
Following an operational control approach to defining our organisational boundary, our calculated GHG emissions from
business activities fall within the reporting period of 1st January 2022 to 31st December 2022 and use the reporting
period of January 2021 to December 2021 for comparison.
Note on agricultural emissions
Emissions from agricultural cultivation form the most significant part of our carbon footprint. As such we have assessed
these emissions in line with the methodology development by the RSPO. Version 4 of the RSPO’s PalmGHG
application has been used to source relevant emission factors and provide a sense check of calculations.
1 Biomass consumption was 307,328 tonnes in 2022 and 328,225 tonnes in 2021.
2 The emissions factor used for biomass in 2022 was 43.0 kg CO2e/tonne, compared to 61.8 kg CO2e/tonne in 2021.
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51
Strategic Report
We include emissions from agricultural cultivation on our own estates within our direct scope 1 and estimate these
agricultural emissions from any outgrower crops processed in our mills, included within our scope 3. This is consistent
with previous years reporting and is aligned to the WRI reporting principles of completeness and relevance, whereby
scope 1 are the direct emissions sources that we own and control. As mentioned above, we will review our approach
upon the release of the new GHG Protocol guidance in 2023.
Emissions from land clearance are reported only for the reporting year in which the land clearance activity took place.
No amortisation has been applied, whereby the emissions would be allocated equally over a number of years based
on the changing land use during that time. We have chosen not to apply amortisation as there is a lack of industry-
acknowledge guidance on this topic at present. We review industry guidance each year and update our methodology
as appropriate. There has been no further guidance throughout 2022, thus the approach taken this year is in line with
our previous years reporting.
Energy and carbon disclosures for reporting year 1
Emissions Source
Global Emissions tCO2e
Variance
Scope 1
Fuels
Plantation vehicles
Fertiliser use
POME Treatment
Sequestration
Land clearance
Peat soil cultivation
Total Scope 1
Total Scope 2 Electricity
Total Scope 1 & 2
Scope 3
Electricity transmission and
distribution
3rd party vehicles
Outgrower land clearance
Outgrower peat soil
cultivation
Outgrower sequestration
Total Scope 3
Total (Location Based)
Total Energy Usage (kWh) 2
2022
2021
18,565
9,209
25,425
135,034
(476,707)
424,476
490,314
626,316
2,947
629,263
262
7,168
391,705
25,058
8,077
18,531
142,262
(458,738)
459,740
486,436
681,366
2,657
684,023
211
7,254
441,247
57,311
(439,904)
16,542
645,805
59,146
(440,333)
67,525
751,548
1,520,437,938 1,465,500,566
-26%
14%
37%
-5%
4%
-8%
1%
-8%
11%
-8%
24%
-1%
-11%
-3%
0%
-76%
-14%
4%
Intensity ratio
Intensity ratio
Intensity ratio
tCO2e per hectare of planted
area
tCO2e per tonne CPO
production
tCO2e per tonne FFB
production
9.06
1.42
0.55
10.63
-15%
1.59
-11%
0.63
-13%
UK
Emissions
tCO2e*
2022 2021
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variance
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
* Note AEP Plc is a UK registered company. However, the business does not have any physical presence within the
UK, hence the 0% contribution of UK emissions. It is shown in the table for transparency.
Annual Report 2022 | Anglo-Eastern Plantations Plc
52
Strategic Report
1 Energy reporting includes kWh from scope 1, scope 2 and scope 3 3rd party vehicles only (as required by the SECR
regulation)
2 The analysis of GHG emissions is partially based on the country-specific CO2 emission factors developed by the
International Energy Agency, © OECD/IEA 2022 but the resulting analysis of GHG emissions has been prepared by
Accenture for AEP and does not necessarily reflect the views of the International Energy Agency
AEP are required to report to the UK Streamlined Energy and Carbon Reporting (“SECR”) regulations. To provide
comparison with our reporting for 2019 and earlier the data is also provided in a similar format below.
2022 vs 2021 emissions comparison
Emissions source
POME treatment
Fertiliser application
2022 Emissions in tCO2e
135,034
25,425
2021 Emissions in tCO2e
142,262
18,531
Variance
Diesel
Biomass
5,339
13,226
4,772
20,286
12%
-35%
Fuel use
Electricity consumption
Electricity T&D
Company owned vehicles
Third party vehicle use
Total operational
emissions
Land clearance
Carbon sequestered
Peat soils cultivation
Total land use
emissions
Overall emissions
Own crop
424,476
(476,707)
490,314
18,565
2,947
262
9,209
7,168
198,610
Outgrower
crop
391,705
(439,904)
57,311
447,195
645,805
Own crop
459,740
(458,738)
486,436
25,058
2,657
211
8,077
7,254
204,050
Outgrower
crop
441,247
(440,333)
59,146
547,498
751,548
Own crop
-8%
4%
1%
-3%
Outgrower
crop
-11%
0%
-3%
-18%
-14%
-5%
37%
-26%
11%
24%
14%
-1%
The normaliser reported within the main report is calculated using total CO2e emissions. In previous years the
normaliser has also been calculated on operational emissions only. This reduces the influence of the fluctuations in
agricultural emissions. As such, the operational normalisers are also reported below. The operational planted area
intensity has decreased as the operational emissions have decreased (-3%) despite an increase in planted area (+1%).
2022 vs 2021 Operational emissions intensity (excluding land use change emissions) (tCO2e)
Operational emissions reporting metric
Per hectare of planted area
Per tonne CPO production
Per tonne FFB production
2022 in tCO2e
2.78
0.44
0.17
2021 in tCO2e
2.89
0.42
0.17
Variance
-4%
5%
0%
Annual Report 2022 | Anglo-Eastern Plantations Plc
53
Strategic Report
Comparison of 2022 and 2021 GHG emissions
600,000
400,000
200,000
e
2
O
C
t
0
-200,000
-400,000
-600,000
Electricity
Other fuel
types
Company
owned
vehicles
Third party
vehicle use
Fertiliser
application
Own crop land
clearance
Own crop
carbon
sequestered
Own crop peat
soils
cultivation
Outgrower
land clearance
Outgrower
carbon
sequestered
Outgrower
peat soils
cultivation
POME
treatment
2022
2021
Annual Report 2022 | Anglo-Eastern Plantations Plc
54
e
v
i
t
a
s
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e
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Strategic Report
Diversity
The AEP Plc Board is composed of three men and one woman with extensive knowledge in their respective fields of experience. The Board has taken note of the recent legislative
initiatives with regards to the representation of women on the boards of directors of listed companies and will make every effort to conform based on legislative requirement.
i
l
l
8
1
4
0
4
4
1
1
4
,
7
7
5
6
,
6
%
0
0
1
0
3
5
,
4
1
a
t
o
T
7
1
6
5
4
4
0
5
1
,
7
1
9
1
,
6
9
0
8
,
3
1
%
0
0
1
2022 average employed during the year
Board (Company and subsidiaries)
3
15
Group Headcount
f
o
5
1
3
3
0
4
5
4
1
,
7
0
6
8
,
3
%
9
7
6
2
4
,
1
1
s
a
h
Senior Management (GM and above)
n
e
m
Managers & Executives
o
W
7
3
1
3
6
6
2
7
9
7
,
2
%
1
2
4
0
1
,
3
d
r
a
Full Time / Field Workers
o
B
e
Part-time / Field Workers *
h
T
Strategic Report
l
a
t
o
T
-
Total
%
.
e
c
n
e
i
r
e
p
x
e
-
3
3
3
3
6
5
8
3
,
1
1
5
0
,
2
%
0
0
1
r
a
e
y
e
h
t
Continuing operations
Women
n
e
M
4
1
5
Men
2
1
4
7
7
8
,
6
3
7
2
7
2
6
Total
3
8
7
,
3
1
9
0
,
1
1
18
8
0
4
,
2
4
407
8
1
7
,
2
6,778
5,272
2
7
5
,
1
8
3
2
,
2
12,479
100%
%
0
8
%
0
2
%
0
0
1
Discontinued operation
Women
Men
Total Operations
Total Women
Men
Total
-
-
-
23
373
396
19%
-
-
33
610
1,012
1,655
81%
-
-
33
633
1,385
2,051
100%
3
-
3
3
1
3
370
6,535
2,848
-
9
3
9,771
78%
n
e
M
-
-
3
3
0
1
6
2
1
0
,
1
%
1
8
5
5
6
,
1
-
-
9
3
4
0
6
7
9
0
,
1
0
4
7
,
1
%
8
7
2021 average employed during the year
f
o
Diversity
The AEP Plc Board is composed of three men and one woman with extensive knowledge in their respective fields of experience. The Board has taken note of the recent legislative
Total
initiatives with regards to the representation of women on the boards of directors of listed companies and will make every effort to conform based on legislative requirement.
Discontinued operation
Continuing operations
Group Headcount
Women
Total
Men
Men
s
d
e
i
f
5
5
-
-
-
l
l
s
n
o
i
t
a
r
e
p
O
l
a
t
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T
1
n
e
m
37
o
W
243
2,424
l
a
t
o
T
2,708
22%
n
e
M
g
n
i
r
u
d
d
e
y
o
p
m
e
e
g
a
r
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v
a
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n
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c
s
D
2022 average employed during the year
l
a
t
o
T
n
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M
s
n
o
i
t
a
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p
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l
a
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g
a
r
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v
a
-
-
-
39
Total Operations
Women
Men
Total
3
1
37
266
2,797
3,104
21%
3
1
33
273
3
1
2,408
2,718
37
20%
266
2,797
3,104
21%
3
1
33
273
2,408
2,718
20%
15
3
403
7,145
3,860
11,426
79%
18
4
440
7,411
6,657
14,530
100%
14
5
Men
412
6,877
15
3,783
3
11,091
403
80%
7,145
3,860
11,426
79%
17
6
Total
445
7,150
18
6,191
4
13,809
440
100%
7,411
6,657
14,530
100%
14
5
412
6,877
3,783
17
6
445
7,150
6,191
11,091
13,809
80%
100%
Total Operations
Total Operations
Total Women
627
-
1,572
2,238
100%
33
633
1,385
2,051
100%
Men
Total
Women
Men
Total
-
-
39
604
1,097
1,740
78%
-
-
39
627
1,572
2,238
100%
y
a
d
-
Discontinued operation
-
Women
-
23
-
475
-
498
-
22%
23
373
-
-
Men
39
604
-
1,097
-
1,740
33
78%
610
1,012
s
r
u
o
h
r
e
p
8
396
19%
1,655
81%
55
l
f
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t
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a
v
u
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-
-
|
l
-
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23
g
n
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475
498
t
r
22%
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p
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R
2
2
0
2
l
a
u
n
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A
55
Women
n
e
m
o
W
5
7
4
8
9
4
l
i
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i
i
-
-
-
i
l
n
4
l
l
i
3
2
8
1
3
2
6
9
3
3
7
3
7
0
4
r
i
e
h
t
%
9
1
1
2
0
2
2
2
0
2
l
a
t
o
T
2
7
2
,
5
8
7
7
,
6
%
0
0
1
9
7
4
,
2
1
e
v
i
t
c
e
p
s
e
r
w
d
n
a
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e
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p
m
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c
d
e
t
s
Continuing operations
n
e
m
o
W
Board (Company and subsidiaries)
Senior Management (GM and above)
Group Headcount
Managers & Executives
e
Full Time / Field Workers
g
Board (Company and subsidiaries)
d
e
Part-time / Field Workers*
w
Senior Management (GM and above)
o
n
Total
k
Managers & Executives
%
Full Time / Field Workers
Part-time / Field Workers *
*Part-time /Field workers Headcounts based on full time equivalent of 8 hours per day
w
Total
n
%
a
m
o
w
e
n
o
3
1
Women
33
250
3
1,933
1
2,220
n
e
37
M
19%
243
2,424
14
5
Men
373
6,273
15
2,686
3
9,351
370
81%
6,535
2,848
s
n
o
i
t
a
r
e
p
o
g
n
u
n
i
t
n
o
C
n
e
2,708
m
o
22%
W
9,771
78%
g
n
u
n
i
t
n
o
C
s
n
o
i
t
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5
3
5
,
6
8
4
8
,
2
4
2
4
,
2
1
7
7
,
9
8
0
7
,
2
3
2
5
,
6
3
7
2
,
6
%
2
2
a
t
o
T
n
e
M
%
8
7
0
7
3
3
7
3
0
5
2
6
0
4
3
4
2
e
h
t
5
1
7
3
n
o
4
1
7
1
3
3
h
t
i
f
o
1
3
3
3
1
5
6
i
i
i
1
7
5
,
1
1
9
1
6
,
4
17
6
Total
406
6,523
18
4,619
4
11,571
407
100%
6,778
5,272
6
8
6
,
2
1
5
3
,
9
0
2
2
,
2
3
3
9
,
1
12,479
100%
Annual Report 2022 | Anglo-Eastern Plantations Plc
%
2
2
%
0
0
1
%
1
8
%
9
1
d
n
a
Group Headcount
n
e
m
e
e
r
h
t
f
o
Board (Company and subsidiaries)
Senior Management (GM and above)
d
e
s
o
Managers & Executives
p
m
Full Time / Field Workers
o
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e
h
t
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t
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k
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Part-time / Field Workers*
d
r
a
Total
o
B
c
%
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P
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-
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a
*Part-time /Field workers Headcounts based on full time equivalent of 8 hours per day
P
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1,933
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2,220
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19%
H
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p
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m
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t
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m
u
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%
l
l
l
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/
/
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i
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i
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l
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l
l
i
i
i
3
1
33
250
17
6
s
r
e
k
r
o
W
d
e
F
406
*
s
r
e
6,523
k
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4,619
d
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11,571
F
100%
e
m
/
l
i
14
5
)
e
v
o
b
a
d
n
a
373
M
G
6,273
t
n
e
2,686
m
e
g
9,351
a
n
a
81%
M
(
i
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s
e
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r
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s
b
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d
n
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n
a
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a
n
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i
t
-
t
r
a
P
l
a
t
o
T
%
Annual Report 2022 | Anglo-Eastern Plantations Plc
2021 average employed during the year
i
t
Continuing operations
Women
Men
Total
Discontinued operation
Women
Strategic Report
Although the Group provides equal opportunities for female workers in the plantations, the male workers make up a
majority of the field workers due to the nature of work and the remote location of plantations from the towns and cities.
Nevertheless, the number of female part-time field workers increased by 16% from 2,408 to 2,797 in 2022 due to new
planting and replanting programs. Overall, the number of female workers within the Group increased by 14% from
2,718 (20%) in 2021 to 3,104 (21%) in 2022. More details on gender diversity can be found on our website under
Workers’ rights and safety / Exploitation / Fair place to work.
The Board continues to monitor the structure and composition of the Group’s management team linking it to the
balance of age, social and ethnic backgrounds, together with relevant qualifications and experience. To date, the Board
believes that the composition of the Group’s management team is fairly balanced in respect of all the elements of
diversity as mentioned above.
Employees
Oil palm cultivation is a labour-intensive industry. In 2022, the number of full-time workers averaged 7,873 (2021:
7,618), a 3% increase while the part-time labour averaged 6,657 (2021: 6,191), a 8% increase. Many part-timers were
promoted to full employment upon maturity of the field. The total headcount of field workers in 2022 was higher by 5%
due to new planting and replanting activities, with further details on page 21 under corporate development. The Group
has introduced some mechanisation in the field to boost productivity. Mechanisation though has its limits but where
possible could help relieve the acute shortage of labour and reduce the cost pressure from rising minimum wages.
It was reported elsewhere that foreign workers are frequently subjected to high recruitment fees that kept them in debt
bondage and are forced to work overtime and in dangerous conditions under the threat of penalties, namely withholding
of salaries and identification documents and restricted movement. AEP adopts a zero-cost recruitment policy towards
all its local and foreign employees.
At the end of 2022, 94.7% of our employees have received their first dose of vaccine while 91.4% have completed
their vaccination programme. Another 52.3% have received their first booster jabs. More details are provided under
CSR of the Strategic Report.
The Group has formal processes for recruitment, particularly for key managerial positions, where psychometric testing
is conducted to support the selection and hiring decisions. Exit interviews are also conducted with departing employees
to ensure that management can address any significant issues.
Existing employees are selected on a regular basis for training programmes organised by the Group’s training centre
that provide grounding and refresher courses in technical aspects of oil palm estate and mill management. The training
centre also conducts regular programmes for all levels of employees to raise the competency and quality of employees
in general. These programmes are often supplemented by external management development courses including
attending industry conferences for technical updates. A wide variety of topics are covered including work ethics,
motivation, self-improvement, company values and health and safety. The Group spent $113,500 on staff training and
professional development in 2022 against $33,200 for the previous year.
The Group operates a cadet program where graduates from local universities are selected to undergo theory and field
training over a twelve-month period. On successful completion, they are assigned as assistants to various mills and
estates.
A large workforce and their families are housed across the Group’s plantations. The benefits provided to them were
extensively covered under CSR in the Strategic Report. On top of competitive salaries and bonuses, these extensive
benefits and privileges help the Group to retain and motivate its employees. The Group complied with the minimum
wage policy issued by the Indonesian government. It respects the rights of employees and does not exploit workers,
use child or forced labour and is not involved in human trafficking as described in the UK’s Modern Slavery Act 2015,
of which a full statement is provided on our website under Corporate Governance.
The employees are covered by Governmental mandatory personal accident scheme with death benefits covering up
to forty-eight months of workers’ monthly salaries. The spouses and children of fulltime employees are also privately
insured for death benefits by the Group.
Annual Report 2022 | Anglo-Eastern Plantations Plc
56
Strategic Report
In addition to the Indonesian government mandatory retirement program managed by Social Security Management
Board (“BPJS”), casual workers are also covered by a defined contribution pension scheme managed by AIA Financial
while the Indonesian managers and permanent employees are included in a post-employment compensation fund
managed by Allianz Indonesia.
The rights of employees and their extensive benefits covering every aspect of employment from salary review,
allowance, bonus, housing, study and training for improvement, work safety and health and code of conduct are
contained in the Company’s handbook which is available and accessible to all employees.
The Group promotes a policy for the creation of equal and ethnically diverse employment opportunities including with
respect to gender.
The Group has in place key performance-linked indicators to determine increment and bonus entitlements for its
employees. The human resources and a member of the Remuneration Committee engage members of the labour
unions representing full-time workers at least once a year on their yearly performance bonuses and grievances. See
Directors Remuneration Report on page 82.
A whistle-blower policy was introduced in 2019 to allow workforce to raise concerns in confidence and if they wish
anonymously to the Board of the holding company for independent investigations and follow-up actions. The full details
of the policy can be downloaded from the Company’s website.
The Group promotes and encourages employee involvement in every aspect wherever practical as it recognises
employees as a valuable asset and is one of the key contributions to the Group’s success. The employees contribute
their ideas, feedback and voice out their concerns through formal and informal meetings including meeting with the
Chairman of the Remuneration Committee annually, discussions and annual performance appraisals. In addition,
various work related and personal training programmes are carried out annually for employees to promote employee
engagement and interaction. The Group organises an annual dinner to recognise high achievers in the plantation and
mill operations. It also has an annual family gathering to foster camaraderie among its employees. These events,
where employees always look forward to, have been suspended during the pandemic for the safety of the employees
and their families are set to resume since Covid-19 is no longer a pandemic as announced by the World Health
Organisation.
Although the Group does not have a specific policy on the employment of disabled persons, it, however, employs
disabled persons as part of its workforce. The Group welcomes disabled persons joining the Group based on their
suitability.
Outlook
FFB production for the three months from continuing operations to March 2023 was 6% lower against the same period
in 2022 mainly due to the drop in production from North Sumatera, Bengkulu and Riau regions. It is too early to forecast
whether the production will improve for the rest of the year.
The CPO price ex-Rotterdam opened the year at $1,060/mt and averaged about $1,016/mt for the first three months
of 2023. Despite the threat of recession in major economies, we expect CPO demand to remain upbeat for the majority
of the first half of 2023 for reasons mentioned in the next paragraph.
CPO continues to attract buyers who are price sensitive as CPO discount to soyabean oil has widen and remains
above the historical average spread of $100/mt. China holds the key to another potential upside as it eased its zero-
Covid policy and reopens the economy boosting demand for vegetable oil. Dry weather in South America in the first
half of 2023 is likely to reduce the harvest of soybean and help sustain CPO demand and prices.
As explained on page 20 on Commodity Prices, the movement in CPO prices are greatly influenced by the Indonesian
government export policy. Effective January 2023, Indonesia had tightened its export policy for palm oil to keep more
for domestic consumption and with less for exports to ensure ample supplies for the festive seasons. Crop production
is also expected to be seasonally weaker in the first quarter of 2023. The introduction of a higher biodiesel blending
mandate in Indonesia in 2023 from B30 to B35 biodiesel policy will further increase domestic consumption of palm oil.
Annual Report 2022 | Anglo-Eastern Plantations Plc
57
Strategic Report
Production cost is expected to stay high in 2023. Inflation rate in Indonesia for 2022 was reported at 5.5%. While cost
of fertilisers had retreated from its peak in 2022, it remains historically high. The on-going conflict between Russia and
Ukraine meant that international sanctions continue to affect the supply of fertilisers from Russia which is a major
producer of urea, potash and rock phosphate, the main ingredients of fertilisers used. Mandated regional wage
increment in Indonesia rose between 7.2% to 8.8% at the beginning of 2023 and is expected to erode the Group’s
profit margin going forward. The increase was in line with the higher inflation rate due to higher costs of petrol and
higher transport costs including air and sea freight.
We have also cater for the likelihood of El-Nino induced weather conditions from the second half of the 2023 which
can cause drought and fire in some parts of our plantations thus affecting crop production.
Nevertheless, barring any unforeseen circumstances, the Group is confident that CPO demand will be sustainable in
the long-term and we can expect a satisfactory trading outturn and cash flow for 2023.
Annual Report 2022 | Anglo-Eastern Plantations Plc
58
Strategic Report
Statement by Directors In Performance Of Their Statutory Duties In Accordance With Section 172 (1) Of The
Companies Act 2006
Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in
good faith, would most likely promote the success of the company for the benefit of its members as a whole, having
regard to a range of factors set out in Section 172(1)(a) – (f) in the Companies Act 2006.
In discharging our Section 172 duty, we have regard for these factors, taking them into consideration when decisions
are made. All the directors recognise their responsibilities to promote the success of the Company for its shareholders,
other investors, its employees, customers, suppliers and the wider community. The Board acknowledges the
importance of climate change and seeks to mitigate the negative impacts of the business on the environment through
its sustainable practices, including engaging a firm of environmental and climate related expertise on this matter.
The Board reorganised the various Committees in 2022 to comply with the UK Code following the appointment of two
new Non-Executive to the Board. Mr. Jonathan Law upon his appointment as the Chairman of AEP, resigned from the
Audit, Nomination and Corporate Governance and the Remuneration Committees. Dato’ John Lim, the Executive
Director also resigned from all the Committees upon the appointment of a new Independent Non-Executive Director.
After the reorganisation, the members of the Audit and Remuneration Committees are now fully made of independent
Non-Executive Directors. Two new directors were added to the Board during the year. Further information on the
changes can be found on Page 73 of the Statement of Corporate Governance.
During the year, the Board set up an Executive Committee which is made up of the Chairman, the Executive Director
and the Non-Independent Non-Executive Director to review the Group’s performance on a quarterly basis including
significant corporate issues that need addressing. The Board believes a closer supervision at a higher level will
enhance governance to achieve the strategic objectives of the Group. Further explanations are on page 72 of the
Statement of Corporate Governance.
During the year, AEP bought back shares in six of its subsidiaries in Indonesia for a consideration of $5.8 million, which
will enhance the profit of the Group in 2023 and onwards, together with a forgiveness of loans of $1.5 million to two
minority shareholders. AEP will continue to buy back shares from its minority shareholders at a fair and competitive
price as part of its consolidation of its shareholdings in the subsidiaries in Indonesia. The financial effect of a buy back
going forward is to enhance profitability in the Group.
As mentioned in the 2021 Annual Report, AEP was in the process of selling three of its non-performing plantations in
South Sumatera. Following from that, a MOU was signed with a potential buyer from Indonesia in December 2022 for
a period of exclusivity to conduct legal and financial due diligence. However, the potential buyer decided not to proceed
following the completion of the due diligence. Since this transaction did not materialise, the book value of the three
plantations for sale is further impaired by $5 million. The management is currently in discussion with another interested
buyer and aimed to complete the sale of the three plantations as soon as practicable.
During the year, the Executive Director has had dialogues and meetings with shareholders, especially with Nokia
Pension fund and other significant shareholders based in Belgium. The aim of such meetings was to address questions
raised and to disseminate factual but not price sensitive information to shareholders, especially on the retirement of
the late Madam Lim and her family’s involvement in the Group through Genton International Limited. The shareholders’
sentiments in such dialogues and meetings are relayed formally to the Board at Board meetings.
This Strategic report, including the non-financial reporting statement on Page 13, which has been prepared in
accordance with the requirements of the Companies Act 2006, has been approved and signed on behalf of the Board.
On behalf of the Board:
Dato’ John Lim Ewe Chuan
Executive Director
21 April 2023
Annual Report 2022 | Anglo-Eastern Plantations Plc
59
Financial Record
Income statement
Continuing operations
Revenue
2022
$000
2021
$000
2020
$000
2019
$000
2018
$000
447,619
433,421
263,818
219,136
250,859
Operating profit before BA
132,895
129,332
Profit attributable to shareholders after BA
84,165
96,054
54,599
36,393
12,178
16,096
30,928
11,413
Dividend proposed for year
(9,909)
(1,982)
(396)
(198)
(1,189)
Financial position
$000
$000
$000
$000
$000
Non-current assets & long-term receivables
271,419
282,581
303,067
384,391
351,387
Cash net of short-term borrowings
221,476
218,249
115,211
76,643
101,134
Long-term loans and borrowings
-
-
-
-
(8,203)
Other working capital
Deferred tax
Non-controlling interests
Net worth
Share capital
Treasury shares
79,056
38,284
32,423
40,580
29,156
1,027
572,978
(109,595)
2,994
542,108
(102,078)
13,607
464,308
(88,875)
(5,796)
495,818
(94,661)
(8,893)
464,581
(92,601)
463,383
440,030
375,433
401,157
371,980
15,504
15,504
15,504
15,504
15,504
(1,171)
(1,171)
(1,171)
(1,171)
(1,171)
Share premium and capital redemption reserve
25,022
25,022
25,022
-
-
-
25,022
48,413
25,022
51,308
(288,891)
(241,907)
(237,599)
(229,026)
(245,170)
712,919
642,582
573,677
542,415
526,487
Revaluation reserves
Exchange reserves
Retained earnings
Equity attributable to shareholders’ funds
463,383
440,030
375,433
401,157
371,980
Ordinary shares in issue (‘000s)
39,976
39,976
39,976
39,976
39,976
Basic EPS before BA movement (US cents)
221.86cts
235.25cts
89.31cts
35.37cts
32.50cts
Basic EPS after BA movement (US cents)
212.34cts
242.34cts
91.82cts
40.61cts
28.79cts
Dividend per share for year (US cents)
25.0cts
5.0cts
1.0cts
0.5cts
Asset value per share (US cents)
1,169cts
1,110cts
947cts
1,012cts
3.0cts
938cts
Exchange rates - year end
Rp : $
$ : £
RM: $
Exchange rates - average
Rp : $
$ : £
RM: $
Annual Report 2022 | Anglo-Eastern Plantations Plc
15,731
14,269
14,105
13,901
14,481
1.20
4.41
1.35
4.17
1.36
4.02
1.32
4.09
1.28
4.13
14,810
14,312
14,572
14,146
14,246
1.24
4.40
1.38
4.15
1.28
4.20
1.28
4.14
1.33
4.04
60
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Annual Report 2022 | Anglo-Eastern Plantations Plc
61
Location of Estates and Mills
Annual Report 2022 | Anglo-Eastern Plantations Plc
62
Directors’ Report
The Directors present their annual report on the affairs of the Group, together with the financial statements and
auditor’s report, for the year ended 31 December 2022.
The Directors performance in relation to their statutory duties, together with the principal decisions taken during the
year are detailed in the Strategy Report under Statements by Directors In Performance Of Their Statutory Duties In
Accordance With Section 172 (1) Of The Companies Act 2006 on page 59.
Accountability and audit
AEP is committed to ensure that the quality of its financial reporting is of a high standard. The Board continually reviews
its internal controls and risk management systems to ensure the Group’s affairs and the Group’s financial reporting
comply with the applicable accounting standards as well as good corporate governance. The main features of the
Group’s internal controls and risk management systems are further disclosed on pages 80 to 81.
The Board considers the annual report and accounts including the Strategic Report when taken as a whole, is fair,
balanced and understandable as it provides the information necessary for shareholders to assess the Group’s position
and performance, business model and strategy.
Results and dividends
The audited financial statements for the year ended 31 December 2022 are set out on pages 101 to 153 The Group’s
profit for the year on ordinary activities before taxation from continuing operations was $132,941,000 (2021: profit
$137,083,000) and the profit attributable to ordinary shareholders from continuing operations was $84,165,000 (2021:
profit $96,054,000). No interim dividend was paid. The Directors recommend a final dividend of 25.0cts (2021: 5.0cts)
to be paid to shareholders on 7 July 2023. Shareholders may elect to receive their dividend in Pounds Sterling as
described on page 66.
Additional disclosures
Other information that is relevant to the Directors’ Report, and which is incorporated by reference into this report, can
be located as follows:
Future developments
Research and development
Financial instruments and financial risk management
Greenhouse gas emissions
Corporate governance report
Colleague engagement
Stakeholder engagement
Section 172 statement
Disclosures required pursuant to the Listing Rules can be found on the following pages:
Listing Rule 9.8.4R
Statement of capitalised interest
Listing Rule 9.8.6(8)
Climate-related financial disclosures consistent with TCFD
Pages
21 to 23
63
139 to 144
50 to 54
70 to 76
82 to 83
59
59
Pages
126
37 to 50
The Company has chosen, in accordance with section 414C(11) of the Companies Act 2006, and as noted in this
Directors’ Report, to include certain matters in its Strategic Report that would otherwise be required to be disclosed in
this Directors’ Report. The Strategic Report can be found on pages 12 to 59 and includes an indication of future likely
developments in the Company, details of important events and the Company’s business model and strategy.
Research and Development
The Group did not undertake any research and development activities. It relies on third parties to conduct research
and development of new disease resistant and higher yield oil palm seeds.
Annual Report 2022 | Anglo-Eastern Plantations Plc
63
Directors’ Report
Political donations, anti-bribery and anti-corruption
The Group made no political donation during the year.
The Group has in place policies and procedures in respect of bribery and corruption, with detailed guidelines and
reporting requirements for its UK, Indonesian and Malaysian operations which may be viewed from the Company’s
website. The whistle-blowers and grievance mechanism policies which include reporting on corruption practices are
also highlighted in Company’s handbook. Management and senior staff have had training programmes and updates
as part of their responsibility to ensure that bribery and corruption do not exist in the Group’s operation. New employees
are also briefed on anti-corruption practices during their orientation. The Group has in place a communication channel
for employees reporting to the Senior Independent Non-Executive Director on incidences of bribery and corruption on
a strictly confidential basis. There are stipulated steps and procedures for the Senior Independent Non-Executive
Director to address the reported issues appropriately and to take the necessarily actions, if relevant. The Group uses
its best endeavour to ensure that its business partners are in compliance with the anti-bribery and anti-corruption
regulations.
Principal risks
The material risks faced by the Group, including any climate change related risks, and actions taken to mitigate those
risks are set out in the Principal Risks and Uncertainties section of the Strategic Report.
Information on financial instruments risks is set out in note 27 to the consolidated financial statements.
Property, plant and equipment
Information relating to changes in property, plant and equipment and capitalised interest, as required pursuant to
Listing Rule 9.8.4R, are given in note 12 to the consolidated financial statements.
Directors
Mr. Jonathan Law Ngee Song, Dato’ John Lim Ewe Chuan, Mr. Lim Tian Huat, Mr. Marcus Chan Jau Chwen and Ms.
Farah Suhanah Tun Ahmad Sarji will be submitting themselves for re-appointment at the forthcoming annual general
meeting.
Brief profiles of all Directors are set out on page 68 to 69 of this Annual Report.
Substantial share interests
As at 13 April 2023 and 31 December 2022, the following interests had been notified to the Company in accordance
with Chapter 5 of the Disclosure Rules and Transparency Rules of the Financial Conduct Authority, being interests in
excess of 3% of the issued ordinary share capital of the Company:
As at 13.4.2023
As at 31.12.2022
Name of holder
Genton International Limited*
Nokia Bell Pensioenfonds
Number
20,247,814
7,015,000
% of
voting rights
held
Number
% of
voting rights
held
51.08%
20,247,814
17.70%
7,015,000
51.08%
17.70%
*The ultimate beneficial shareholders of Genton International Limited are vested in the estates of Madam Lim with the
application for probate in progress.
Annual Report 2022 | Anglo-Eastern Plantations Plc
64
Directors’ Report
Share capital, restrictions on transfer of shares, arrangements affected by change of control and other
additional information
The Company has one class of share capital, ordinary shares. All the shares rank pari passu. The articles of association
of the Company contain provisions governing the transfer of shares, voting rights, the appointment and replacement
of Directors and amendments to the articles of association. This accords with usual English company law provisions.
There are no special control rights in relation to the Company’s shares. There are no significant agreements to which
the Company is a party which take effect, alter or terminate in the event of a change of control of the Company. There
are no agreements providing for compensation for Directors or employees on change of control.
Auditor
All of the current Directors have taken steps to make themselves aware of any information needed by the Company’s
auditor for the purposes of their audit and to establish that the auditor is aware of the information. The Directors are
not aware of any relevant audit information of which the auditor is unaware.
BDO LLP have expressed their willingness to continue in office and a resolution to re-appoint them will be proposed
as Resolution 8 at the forthcoming annual general meeting.
Changes to the Company’s Articles of Association
An authority is sought to make certain changes to the Company Articles of Association to bring it in line with current
convention as well as to align with the revised Remuneration Policy, of which an authority is also sought. The details
of the proposed changes to the Articles of Association are in the Notice of the AGM on page 155, under Resolution
16.
Authority to allot shares
At the annual general meeting held on 27 June 2022 shareholders authorised the Board under the provisions of section
551 of the Companies Act 2006 to allot relevant securities within specified limits for a period of five years. Renewal of
this authority is being sought under Resolution 12 at the forthcoming annual general meeting.
The aggregate nominal value which can be allotted under the authority set out in paragraph (i) of the resolution is
limited to £3,303,031 (representing 13,212,124 ordinary shares of 25p each) which is approximately one third of the
issued ordinary capital of the Company as at 21 April 2023 (being the latest practicable date before publication of this
notice). In accordance with guidance issued by The Investment Association, the authority in paragraph (ii) of the
resolution will authorise the Directors to allot shares, or to grant rights to subscribe for or convert any security into
shares, only in connection with a fully pre-emptive rights issue, up to a further nominal value of £3,303,031
(representing 13,212,124 ordinary shares). This amount (together with the authority provided under paragraph (a) of
the resolution) represents approximately two thirds of the Company’s issued ordinary share capital (excluding treasury
shares) as at 21 April 2023. This authority will expire at the conclusion of the next annual general meeting of the
Company. The Directors have no present intention of issuing new shares, or of granting rights to subscribe for or to
convert any security into shares.
Disapplication of pre-emption rights
A fresh authority is also being sought under the provisions of sections 570 and 573 of the Companies Act 2006 to
enable the Board to make an issue to existing shareholders without being obliged to comply with certain technical
requirements of the Companies Act, which create problems with regard to fractional entitlements and overseas
shareholders. In addition, the authority will empower the Board to make issues of shares for cash to persons other
than existing shareholders up to a maximum aggregate nominal amount of £495,454 representing 5% of the current
issued share capital. The authority will be expiring at the forthcoming annual general meeting or on 30 June 2023,
whichever is earlier. Renewal of this authority on similar terms is being sought under Resolution 13 at the forthcoming
annual general meeting. The Company does not intend to issue more than 7.5% of the issued share capital on a non
pre-emptive basis in any three-year period.
Annual Report 2022 | Anglo-Eastern Plantations Plc
65
Directors’ Report
Acquisition of the Company’s own shares and authority to purchase own shares
At 21 April 2023, the Directors had remaining authority under the shareholders’ resolution of 27 June 2022, to make
purchases of 3,963,637 of the Company’s ordinary shares. This authority expires on 30 June 2023. All such purchases
will be market purchases made through the London Stock Exchange. Companies can hold their own shares which
have been purchased in this way in treasury rather than having to cancel them. The Directors would, therefore, consider
holding the Company’s own shares which have been purchased by the Company as treasury shares as this would
give the Company the flexibility of being able to sell such shares quickly and effectively where it considers it in the
interests of shareholders to do so. Whilst any such shares are held in treasury, no dividends will be payable on them
and they will not carry any voting rights.
Resolution 14 to be proposed at the forthcoming annual general meeting seeks renewed authority to purchase up to
a maximum of 3,963,637 ordinary shares of 25p each on the London Stock Exchange, representing 10% of the
Company’s issued ordinary share capital. The minimum price which may be paid for an ordinary share is 25p. The
maximum price which may be paid for an ordinary share on any exercise of the authority will be restricted to the highest
of (i) an amount equal to 5% above the average middle market quotations for such shares as derived from the London
Stock Exchange Daily Official List for the five business days before the purchase is made and (ii) the higher of price
of the last independent trade and the highest current independent bid on the London Stock Exchange. The maximum
number of shares and the price range are stated for the purpose of compliance with statutory requirements in seeking
this authority and should not be taken as an indication of the level of purchases, or the prices thereof, that the Company
would intend to make.
Dividends
The Board has declared a final dividend of 25.0cts per share (2021: 5.0cts), in line with our reporting currency, in
respect of the year to 31 December 2022. Subject to shareholders approval of Resolution 4 at the annual general
meeting, the final dividend will be paid on 7 July 2023 to those shareholders on the register on 2 June 2023.
While the dividend is declared in US Dollar, as mentioned in the Shareholders Information section of the Annual Report,
shareholders can choose to receive the dividends in Pounds Sterling. In the absence of any specific instruction up to
the date of closing of the register on 2 June 2023, shareholders with addresses in the UK are deemed to have elected
to receive their dividends in Sterling and those with addresses outside of UK in US Dollar. Shareholders who choose
to receive the dividends in Pounds Sterling will do so at the exchange rate ruling on 2 June 2023, being the dividend
record date. Based on the exchange rate at 17 April 2023 of $1.24 / £, the proposed dividend would be equivalent to
20.2p (2021: 3.9p). Shareholders are reminded that the last day to revoke a currency election is on 16 June 2023.
AEP operates a dividend reinvestment plan (“DRIP”). Holders of the shares may elect to reinvest their final dividend.
The latest election date is 16 June 2023.
Please note, if a holder makes a partial DRIP election for shares, then the dividend for the remaining shares will be
paid in Pound Sterling.
Liability insurance for Company officers
As permitted by the Companies Act 2006 the Company has maintained insurance cover for the Directors against
liabilities in relation to the Company which remains in force at the date of this report.
On behalf of the Board:
Dato’ John Lim Ewe Chuan
Executive Director
21 April 2023
Annual Report 2022 | Anglo-Eastern Plantations Plc
66
Directors’ Responsibilities
The Directors are responsible for preparing the annual report and the financial statements in accordance with UK
adopted international accounting standards and applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors
are required to prepare the Group financial statements in accordance with UK adopted International Accounting
Standards ("IAS") and have elected to prepare the company financial statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) ("UK GAAP").
Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a
true and fair view of the state of affairs of the Group and Company and of the profit or loss for the Group for that period.
In preparing these financial statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether they have been prepared in accordance with UK adopted international accounting standards, subject
to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group
and the Company will continue in business; and
prepare a Directors’ Report, a Strategic Report and Directors’ Remuneration Report which comply with the
requirements of the Companies Act 2006.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities. The Directors are responsible for ensuring that the annual
report and accounts, taken as a whole, are fair, balanced, and understandable and provides the information necessary
for shareholders to assess the group’s performance, business model and strategy.
Website publication
The Directors are responsible for ensuring the annual report and the financial statements are made available on a
website. Financial statements are published on the Company’s website in accordance with the legislation in the UK
governing the preparation and dissemination of financial statements, which may vary from legislation in other
jurisdictions. The maintenance and integrity of the Company's website is the responsibility of the Directors. The
Directors' responsibility also extends to the ongoing integrity of the financial statements contained therein.
Directors’ responsibilities pursuant to Disclosure and Transparency Rules 4 (“DTR4”)
The Directors confirm to the best of their knowledge:
The financial statements have been prepared in accordance with the applicable set of accounting standards, give
a true and fair view of the assets, liabilities, financial position and profit and loss of the Group.
The annual report includes a fair review of the development and performance of the business and the financial
position of the Group and Company, together with a description of the principal risks and uncertainties that they
face.
On behalf of the Board:
Dato’ John Lim Ewe Chuan
Executive Director
21 April 2023
Annual Report 2022 | Anglo-Eastern Plantations Plc
67
Directors
Jonathan Law Ngee Song
(Non-Executive Chairman, age 57).
Appointed as an Independent Non-Executive director on 4 July 2013. He was appointed as the Non-Executive
Chairman of AEP on 8 July 2022.
Mr. Jonathan Law graduated from Australia National University in 1989 with a Bachelor of Commerce and Bachelor of
Laws. He was admitted as an Advocate and Solicitor, to the High Court of Malaya in 1991. He is in legal practice and
currently a Partner in Messrs. Azmi & Associates handling merger and acquisitions and corporate practice. He was
previously a Partner in Messrs. Nik Saghir & Ismail (1996 to 2019) and Allen & Gledhill (1991 to 1995).
Mr. Jonathan Law is the Non-Independent Non-Executive Chairman of Evergreen Fibreboard Berhad, listed on Bursa
Malaysia. He is also the Chairman of the Remuneration Committee and a member of the Nomination Committee of
Evergreen Fibreboard Berhad. He also sits on the board of Pimpinan Ehsan Berhad as a Non-Independent and Non-
Executive Director.
Dato’ John Lim Ewe Chuan
(Executive Director, age 73).
Appointed on 26 April 2008. On 1 September 2010 he was appointed as the Executive Director. Prior to 1 September
2010, Dato’ John Lim was the Senior Independent Non-Executive Director.
A Chartered Certified Accountant; Dato’ John Lim retired as a Partner with UHY Hacker Young LLP, London on 30
April 2019 where he was a Partner since 1998; previously he had a professional accounting career in Singapore and
the UK.
Lim Tian Huat
(Senior Independent Non-Executive Director, Chairman of Audit Committee, Chairman of Nomination & Corporate
Governance Committee and member of Remuneration Committee, age 68).
Appointed on 8 May 2015.
Mr. Lim is a fellow of the Association of Chartered Certified Accountants and member of the Malaysian Institute of
Accountants and Malaysian Institute of Certified Public Accountants. He is the founding President and member of
Insolvency Practitioners Association of Malaysia. He holds a degree in BA in Economics (Honours).
He is a practising Chartered Accountant with his own Corporate Restructuring and Insolvency practice, Rodgers Reidy
& Co and his Audit and Advisory practice, Lim Tian Huat & Co. He is also the Managing Director of A Advisory Sdn
Bhd. He was previously a Partner at Arthur Andersen & Co Malaysia from 1990 to 2002 and a Partner at Ernst & Young
Malaysia from 2002 to 2009.
Mr. Lim also served as the Commissioner of the United Nations Compensations Commission for a period of five years.
He co-authored a book entitled “The Law and Practice of Corporate Receivership in Malaysia and Singapore”.
Mr. Lim is the Senior Independent Non-Executive Director of Majuperak Holdings Berhad, listed on Bursa Malaysia.
He is an Independent Non-Executive Director of DUET Acquisition Corp, listed in Nasdaq. He is appointed as an
Independent Non-Executive Director on the board of PLUS Malaysia Berhad and Pacific & Orient Insurance Co.
Berhad.
Annual Report 2022 | Anglo-Eastern Plantations Plc
68
Directors
Marcus Chan Jau Chwen
(Non-Executive Director and member of the Nomination & Corporate Governance Committee, age 39)
Appointed on 10 August 2022.
Mr. Marcus Chan graduated from the University of Melbourne, Australia with a Bachelor of Commerce. He is currently
completing his Master in Business Administration from China Europe International Business School ("CEIBS"). He
started his career at Ernst & Young Malaysia as an associate auditor and then continued to financial advisory, business
development and marketing. His main experience is in finance, business development and marketing. He is also
involved in the various privately owned family businesses.
Farah Suhanah Tun Ahmad Sarji
(Independent Non-Executive Director, member of the Audit Committee, Chairman of the Remuneration Committee
and member of the Nomination & Corporate Governance Committee, age 58)
Appointed on 20 October 2022.
Ms. Farah was admitted as an Advocate and Solicitor of the High Court of Malaya in 1996. She graduated with a
Bachelor of Arts (Hons) in Law from the University of Kent in 1988, and was admitted as a Barrister-at-Law of the
Middle Temple, London in 1989.
Ms. Farah has over 26 years of legal and commercial expertise across Malaysia on regulatory requirements, locally
and internationally, in the oil and gas, telecommunications and satellite industries as well as the palm oil plantation
industry. She recently retired as the Group Legal Counsel from IOI Corporation, a public listed company
in Malaysia with core businesses in palm oil plantations, palm oil downstream manufacturing and investment spanning
across Malaysia, Singapore, China, Germany and the Netherlands. Previous to this, she was General Counsel at
MEASAT Global, a Malaysian telecommunications company for 10 years, and concurrently managed her own private
legal firm. Between 1989 to 1996, she worked for the Malaysian Government as a Deputy Public Prosecutor and
Federal Counsel in the Attorney-General's Chambers.
Annual Report 2022 | Anglo-Eastern Plantations Plc
69
Statement on Corporate Governance
I am pleased to report on the activities of the Nomination and Corporate Governance Committee for the year ended
31 December 2022. This Statement on Corporate Governance forms part of the Directors’ Report.
Compliance with the UK Corporate Governance Code
AEP is committed to business integrity, appropriately high ethical standards and professionalism in all its activities and
operations. This includes a commitment to high standards in corporate governance relating in particular to appropriate
systems and controls adopted at a senior level of management of the Group and operation of the Board. The
benchmark standards in this regard are set out in the UK Corporate Governance Code 2018 (‘the Code’), which was
published in July 2018 which forms part of the Listing Rules of the London Stock Exchange. The Code is available
from the Financial Reporting Council’s (“FRC”) website at www.frc.org.uk. A regular formal and rigorous externally
facilitated board evaluation (see page 71) as provided under Provision 21 of the Code was not met throughout the
financial year ended 31 December 2022. Another three provisions were partially complied with in 2022. These were
Provision 19 relating to a director acting in the Chairman’s role for more than nine years and Provision 24 and 32
relating to an Executive Director inclusion as members of the Audit and Remuneration Committees. However, we
pleased to state that AEP is in compliance with Provision 19, following the retirement of Madam Lim and the
appointment of Mr. Law to the chair on since 8 July 2022. Although Provision 19 stipulates that the chair should not be
a director who has served nine years on the board, it does however allows a Non-Executive Director to step up as
Chairman for a limited period. Mr. Law was an Independent Non-Executive Director prior to his appointment as
Chairman of AEP. The Company is also in full compliance of Provision 24 and 32, following Dato’ John Lim’s
resignation from the audit committee and the remuneration committee on 19 October 2022.
Monitoring compliance with the Code is the responsibility of the Nominations and Governance Committee. All
Committee terms of reference have been reviewed to reflect the requirements in the Code.
Board leadership and company purpose.
Audit, risk and internal control.
The core objective of the Board is to create and deliver the long-
term sustainable success of the Company, generating value for
shareholders and contributing to the wider society in a way that
is supported by the right culture and behaviours.
See page 12 to 13 for more details on the business model and
strategy.
Division of responsibilities.
The Board has agreed a clear division of responsibilities
between the running of the Board and running the business of
the Group, which is supported by the corporate governance
framework. Responsibilities are clearly defined
role
statements to ensure that no one individual has unrestricted
powers of decision-making and no small group of Directors can
dominate the Board’s decision-making.
in
Committee terms of reference determine the authority given to
each of the Board’s Committees.
The Board is accountable to stakeholders for ensuring that the
Group is appropriately managed. The Board sets the Group’s risk
appetite and satisfies itself that financial controls and risk
management systems are robust, while ensuring the Group is
adequately resourced. The Board receives regular updates on
audit, risk and internal control matters with detailed oversight
undertaken by the Audit Committee and its findings are reported
to the Board.
See pages 77 to 81 for more details on audit, risk management
and internal control and the work of the Audit Committee.
Remuneration.
The Board, supported by the Remuneration Committee, ensures
that the remuneration policies are designed to support strategy
long-term sustainable success. Executive
and promote
remuneration is aligned to the successful delivery of the
Company’s long-term strategy.
For more details on Board composition, leadership and role
statements see pages 68 to 69, 71 to 76.
See pages 84 to 85 for more details on the remuneration policy nd
implementation of the policy.
Composition, succession and evaluation.
The Board, with the support of the Nominations and Governance
Committee, keeps under constant review the composition of the
Board and its Committees, succession planning, diversity,
inclusion and governance-related matters.
Further details demonstrating how the Principles and Provisions of
the Code have been applied can be found throughout the
Corporate governance report, the Directors’ report, each of the
Board Committee reports and the Strategic report.
The Board undertakes a review of its effectiveness and that of
its Committees and Directors annually.
See page 71 for more details on Board effectiveness. The
activities of the Nominations and Governance Committee can be
found on page 74.
The Financial Reporting Council (“FRC”) is responsible for the
publication and periodic review of the UK Corporate Governance
Code and this can be found on the FRC website www.frc.org.uk.
Annual Report 2022 | Anglo-Eastern Plantations Plc
70
Statement on Corporate Governance
Relationship Agreement with Controlling Shareholder
The UK Listing Rules require a premium listed issuer with a controlling shareholder to have in place a relationship
agreement with the controlling shareholder. The mandatory requirement for the relationship agreement is intended to
prevent controlling shareholders from exercising their influence in a way that is improper or unfair to minority
shareholders. The requirement is not intended to prevent a controlling shareholder from engaging fairly with an issuer
or legitimately disagreeing with the issuer and neither are they intended to prevent shareholders from holding board
positions. AEP Plc has identified all controlling shareholders and regarded its major shareholder, Genton International
Limited (“Genton”) as the only controlling shareholder. In this respect, the Company entered into a relationship
agreement with Genton on 14 November 2014. The agreement is available for inspection by the shareholders upon
request from the Company Secretary. The Board has reviewed this agreement with the controlling shareholder in 2020
and concluded that AEP Plc has complied with the independence provisions included in the agreement and that, in so
far as it is aware, those independence provisions have been complied with by Genton.
The Board
The Board is responsible for the proper leadership of the Company for the long-term success of the Company and
Group. The Board is supplied with relevant, timely and accurate information for review prior to each meeting to enable
them to discharge their duties. The Audit Committee is responsible for the integrity of the financial information and this
is achieved by interacting with the management and with the internal auditors. The Board has identified and formally
adopted a schedule of key matters that are reserved for its decision, including the annual fiscal and capital budgets,
interim, preliminary and final results announcements, final dividends, the appointment of Directors and the Company
Secretary, circulars to shareholders, Group treasury policies and acquisitions. Other matters are delegated to Board
committees, the details of which are set out below.
AEP is led by a strong and experienced Board of Directors (see biographical details set out on page 68 to 69). During
2022 the Board comprised of five directors, the Non-Executive Chairman, one Executive Director and three Non-
Executive Directors, of which two are considered by the Board to be Independent. AEP has complied with the Provision
11 of the UK Code which provides that at least half the Board, excluding the Chair, should be Non-Executive Directors
whom the Board considers to be independent.
Dato’ John Lim who was appointed as the Executive Director, Corporate Finance and Corporate Affairs on 1
September 2010 was redesignated as the Executive Director from August 2022. Prior to 1 September 2010, Dato’
John Lim was the Senior Independent Non-Executive Director. The redesignation was made in line with his greater
role in the Group going forward and in his capacity as the de-facto Chief Executive Officer (“CEO”).
AEP was not in compliance with Provision 19 of the Code until the late Madam Lim Siew Kim retired as the Non-
Executive Chairman on 8 July 2022. She held the Chairmanship for eleven years from January 2011. Provision 19
provides that the chair should not remain in the post beyond nine years from the date of first appointment to the Board.
The Nomination and Corporate Governance Committee will monitor continuously the future leader and talents within
the Group as well as outside the Group. This is essential to ensuring a continuous level of quality in management, in
avoiding instability by helping to mitigate the risks which may be associated with unforeseen events, such as the
departure of a key individual, and in promoting diversity and inclusion. The Company continues to have a systematic
approach to succession planning for Non-Executive Directors. The Chairman has a personal dialogue with individual
directors at least once a year to discuss the business of the Group in general and their plans, if any, to facilitate
succession planning especially where the director has served for more than nine years.
Independence of the Non-Executive Directors
The Board has evaluated the independence of each of its Non-Executive Directors. Following this assessment, the
Board has determined that, throughout the reporting period, two of its Non-Executive Directors, who were appointed
for specified terms of office, were independent, based above all on their objectivity and integrity. The terms and
conditions relating to the appointment of the Non-Executive Directors are available from the Company Secretary.
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Statement on Corporate Governance
In arriving at its conclusion, the Board considered the factors set out in Provision 10 of the UK Code including, inter
alia, whether any of the Non-Executive Directors:
• has been an employee of the Group within the last five years;
• has, or had within the last three years, a material business relationship with the Group;
• receives additional remuneration from the Group apart from a director’s fee;
• has close family ties with any of the Group’s advisors, Directors or senior employees;
• holds cross-directorships or has significant links with other Directors through involvement in other companies or
bodies;
• has served more than nine years on the Board; or
• represents a significant shareholder.
The UK Code acknowledges that a director may be regarded as independent notwithstanding the existence of any of
the above factors, provided a clear explanation is given.
The Independent Non-Executive Directors of the Company have a wide range of business interests beyond their
position with the Company and the rest of the Board agree unanimously that they have shown themselves to be fully
independent.
Senior Independent Non-Executive Director
Mr. Lim Tian Huat, an experienced Chartered Accountant acted in the capacity of the Senior Independent Non-
Executive Director from 8 May 2015.
Operation of the Board
A schedule of duties and decisions reserved for the Board and management respectively has been adopted. The Audit,
Nomination & Corporate Governance and Remuneration Committees have written terms of reference which are
available for inspection upon request from the Company Secretary. The terms of reference are also available for
download from the Company’s website under Sustainability - Corporate Governance section.
Unless warranted by unusual matters, the Board normally meets two to three times each year. Otherwise, all other
matters are dealt with by written resolution and telephone conference. In 2022 however, there were six formal Board
meetings attended as follows: -
Attendance
Jonathan Law Ngee Song (Non-Executive Chairman) 6/6
6/6
Dato’ John Lim Ewe Chuan
6/6
Lim Tian Huat
2/2
Marcus Chan Jau Chwen
-
Farah Suhanah Tun Ahmad Sarji*
1/2
Madam Lim Siew Kim**
*There was no Board meeting held between the date when Ms. Farah was appointed and 31 December 2022.
**Madam Lim retired from the Board on 8 July 2022.
Agenda and minutes of previous meetings were circulated prior to meetings.
The Independent Non-Executive Directors met on their own during 2022. Telephone discussions between the
Chairman and the Non-Executive Directors also took place outside these meetings.
In 2022, the Board followed the Group results and activities of the various subsidiaries by means of monthly reports
prepared by the senior management teams in Malaysia and Indonesia. The Board deliberated on the periodic results
and measured its performance against other plantation companies.
During the year, the Board set up an Executive Committee which is made up of the Chairman, the Executive Director
and a Non-Independent Director who received detailed briefing from the management on a quarterly basis on the
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Statement on Corporate Governance
Group’s performance and significant corporate issues that need addressing. In addition, they followed the development
in Indonesia through monthly minutes of the senior management operational meetings. The Board believes that given
a large part of the Group’s revenue is derived from Indonesia, a closer supervision at a higher level will enhance
governance to achieve the strategic objectives of the Group. The senior management operational meetings are
attended by the Senior General Manager and Group Accountant from Malaysia and the management team based in
Indonesia which includes the President Director, the Chief Operating Officer, the Finance Director and the Engineering
Director. The Senior Internal Audit Manager is regularly invited to brief the Board of significant audit findings and follow-
up actions. The annual budget for 2023 was tabled and following deliberations were approved by the Board.
The Board reorganised the various Committees in 2022 to comply with the UK Code. Mr. Jonathan Law upon his
appointment as the Chairman of AEP, resigned from the Audit Committee, Nomination and Corporate Governance
Committee and the Remuneration Committee. Dato’ John Lim, the Executive Director also resigned from all the
Committees upon the appointment of a new Independent Non-Executive Director. Two new directors were added to
the Board. Mr. Marcus Chan, the son of the late Madam Lim, the previous Chairman and controlling shareholder, was
appointed as a Non-Executive Director to continue the family involvement followed by Ms. Farah Suhanah Tun Ahmad
Sarji as an Independent Non-Executive Director. The Board believes that Mr. Marcus Chan youth and dynamism and
Ms. Farah previous involvement in palm oil plantation industry will add value to the Group. The Board continues to
observe the need for diversity.
The Presidential Regulation No.10 of 2021 allows foreign companies operating in Indonesia to have 100% ownership
in palm oil companies. With this the Company took the opportunity to buy back shares in six Indonesian subsidiaries
where the minority shareholders had expressed their interest to sell over the years. During the year, AEP bought back
shares in six of its subsidiaries in Indonesia for a consideration of $5.8 million, which will enhance shareholders’ value
in 2023 and onwards, together with a forgiveness of loans of $1.5 million to two minority shareholders. AEP will
continue to buy back shares from its minority shareholders at a fair and competitive price as part of its consolidation
of its shareholdings in the subsidiaries in Indonesia. The financial effect of a buy back going forward is to enhance
earnings per share. The buy back is expected to enhance future earnings as it reduces non-controlling interests in
profitable companies. On the other hand, the buy back in the three non performing companies in South Sumatera
companies will enable the Group to restructure their Balance Sheets to accommodate a divestment which would
enhance the profitability and cash flow of the Group.
The Board deliberated on the dividend rate for the year. The Board has taken a balanced approach to the requirement
of funds in the Company in order to expand through the acquisitions of brownfields, profitable plantations as well as
consolidating its shareholdings in the subsidiaries in Indonesia to enhance shareholders’ value but at the same time
cognisant of shareholders’ wishes to have dividends as a form of income. It is also a relief that the uncertainty caused
by the Covid-19 pandemic is over and we are back to normalcy, other than the ongoing war in Ukraine, and therefore
the Board’s sentiments on added prudence and contingency in the past can be less stringent. The Board is also mindful
of the cost of living crisis as well as the energy crisis, especially in the UK and in Europe, that most households will
need additional income to cope with the increase cost of living. With this in mind and in the light of the good profit
achieved in the year the Board has declared a final dividend of 25.0cts per share, in line with our reporting currency,
in respect of the year to 31 December 2022 (2021: 5.0cts).
The Board, during the year, met various fund managers to evaluate investment proposals for a higher return on its
cash and to hedge against a potentially volatile Indonesian Rupiah. The Board intends to invest part of AEP’s cash in
2023 with a couple of fund managers after a thorough process of evaluation.
The Board reviewed the risks management process and noted the probable financial impact of the climate change on
the operation of the Group should the risks materialised. The Board has lowered the risks of business interruptions
associated with Covid-19 in view of higher vaccination rates across Indonesia and Malaysia and lower new Covid
cases reported.
As mentioned in the 2021 Annual Report, AEP was in the process of selling three of its non performing plantations in
South Sumatera. Following from that, a MOU was signed with a potential buyer from Indonesia in December 2022 for
a period of exclusivity to conduct legal and financial due diligence. However, the potential buyer decided not to proceed
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Statement on Corporate Governance
following the completion of the due diligence. Since this transaction did not materialise, the book value of the three
plantations for sale is further impaired by $5 million. The management is currently in discussion with another interested
buyer and aimed to complete the sale of the three plantations as soon as practicable.
Each Board member has access to the impartial advice and services of the Company Secretary, who is responsible
to the Board for ensuring that appropriate procedures are followed. Where necessary, the Board members may seek
independent advice from the Company’s brokers, including legal counsel at the Company’s expense. The Company
maintained Directors’ and officers’ liability insurance throughout 2022.
Non-Executive Directors are normally appointed for two-year terms renewable on the recommendation of the Board.
To maintain the vitality of the Board, the Company specify fixed terms of office for Non-Executives Directors. However,
the Board will review the position of each Director for the yearly re-election under the Code. The re-election of the
independent Non-Executive Directors has always been on the basis of gaining a majority of the independent
shareholders vote in addition to the total shareholders vote since this requirement was first introduced.
In 2022 the Board conducted a review of its performance by discussion. It concluded that the Board was performing
effectively and that the Board members have the complementary skills appropriate to propel the Group in its strategic
direction and for challenges ahead. No other major issues arose from this review. The Company does not appoint an
external consultant to conduct a formal and rigorous evaluation of the Board’s performance as the Board believes that
it had performed commendably going by the financial results achieved over the years when compared to its peers.
Following a review of the internal control and risks management in April 2023 and in the absence of any reported
failure and weaknesses which the Board considered significant, it concluded that these remain effective and sufficient
for their purpose.
In connection with the statutory provisions regarding directors’ conflict of interest, the Directors must avoid a situation
in which the Directors have, or can have a direct or indirect interest that conflicts, or possibly may conflict with the
interests of the Company. The duty is not infringed if the matter has been authorised by the Directors. Under the
Articles, the Board has the power to authorise potential or actual conflict situations. The Board maintains effective
procedures to enable the Directors to notify the Company of any actual or potential conflict situations and of those
situations to be reviewed and, if appropriate, to be authorised by the Board. Directors’ conflicts situation if it arises is
reviewed annually and authorisation is recorded in the Board minutes.
Nomination and Corporate Governance Committee
The Nomination and Corporate Governance Committee had five meetings in 2022 which were attended as follows:
Attendance
Lim Tian Huat (Chairman of Committee)
Farah Suhanah Tun Ahmad Sarji*
Marcus Chan Jau Chwen
Jonathan Law Ngee Song**
Dato’ John Lim Ewe Chuan**
5/5
-
1/1
4/4
5/5
*There was no nomination and corporate governance committee meeting held between the date when Ms. Farah was
appointed and 31 December 2022.
**Both Mr. Jonathan Law and Dato’ John Lim have resigned from the Nomination and Corporate Governance
Committee on 25 August 2022 and 19 October 2022 respectively.
The policy on diversity is described on page 55 of the Strategic Report.
Activities
During the year, the Nomination Committee reviewed and deliberated on the Statement of Corporate Governance for
inclusion in the Annual Report. It also recommended to extend the contract of two directors. With the late Madam Lim
retiring from the Board, the Committee proposed, and the Board of AEP approved the appointment of Mr. Jonathan
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Statement on Corporate Governance
Law as the Non-Executive Chairman of AEP as he has broad knowledge of the Group’s strategy and operation having
served diligently as an independent Non-Executive Director for 9 years and consequently could no longer fulfil the role
of an Independent Director. The Committee also acted on the request of the late Madam Lim to appoint her son, Mr.
Marcus Chan, to the Board to continue her family’s involvement in the Company following her retirement. Ms. Farah
Suhanah was later appointed in compliance with Provision 19 of the Code which states that at least half of the Board,
excluding the Chair, should be Independent Non-Executive Directors. The process of finding a suitable candidate for
the position of an Independent Non-Executive Director was based on the directors’ extensive network of business
contacts without the services of an external consultant. A shortlist of candidates was drawn up to meet the entire Board
before Ms. Farah Suhanah was appointed. Panmure Gordon, the Company’s sponsor, was enlisted to conduct probity
check on the two new directors prior to their appointment. The Committee also arranged for a formal training
programme conducted by our UK lawyers and sponsor in January 2023 to update all the directors on corporate
governance, their responsibilities as directors and the UK company law. It was a useful orientation for the new directors
of the Company. As in the past the Board will not hesitate to arrange training on specific matters where it is thought to
be required.
Relations with shareholders
All shareholders may attend the Company’s AGM and put questions to the Board and such questions must be with at
least twenty working days’ notice. At the conclusion of the AGM, a summary of votes for each resolution is reported
and made available at the company’s website as soon as practicable after the meeting. Shareholders will not receive
a hard copy of the proxy form for the 2023 AGM. Instead, shareholders will be able to vote electronically using the link
https://www-uk.computershare.com/investor/. For more details, please refer to online submission of proxy voting on
page 8 of the Annual Report.
In a typical year, the Executive Director would have contacted and met certain principal shareholders during the year
to understand their concerns and views on governance and performance. The views of the shareholders are
communicated to the Board to ensure that it is mindful of the shareholders’ sentiment and issues arising at all times.
It is the intention of the Board to engage with identifiable shareholders who have voted against Company’s resolutions
in the past. During the year, the Executive Director met with some significant shareholders in London and Antwerp, a
town in Belgium.
The annual report, interim report and trading statements are intended to keep the shareholders informed as to the
progress in the operational and financial performance of the Group. The Company maintains a corporate website at
https://www.angloeastern.co.uk/. This website has detailed information on various aspects of the Group’s operations.
The website is updated regularly and includes latest Company announcements, information on the Company’s share
price, the price of crude palm oil, foreign currency movement of Indonesian Rupiah against US dollar and
environmental, social and governance matters.
The Company’s results and other news releases issued via the London Stock Exchange’s Regulatory News Service
are published on the “Investors Information” and “News” sections of the website and together with other relevant
information concerning the Company and the Industry, are available for downloading. The website was upgraded
recently to enable shareholders and investors to select and receive e-mail alerts from the Company on the selected
regulatory news to follow the development of the Company.
Environmental and corporate responsibility
In 2004 a group of growers, processors, retailers and wildlife and conservation groups founded the “Roundtable for
Sustainable Palm Oil”, known as RSPO, to codify and promote best practices in the industry. Although AEP is not a
member of the RSPO, the Group’s management and Directors take a serious view of their environmental and social
responsibilities and are fully committed to the principles developed by RSPO. Many of these principles overlap with
ISPO and MSPO of which compliance is mandatory for AEP. These principles cover eight headings as follows:
•
• compliance with local laws and regulations;
• commitment to long-term economic and financial viability;
• use of appropriate best practices by growers and millers;
• environmental responsibility and conservation of natural resources and biodiversity;
•
responsible consideration of individuals and communities affected by growers and mills;
transparency;
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Statement on Corporate Governance
responsible development of new plantings; and
•
• commitment to continuous improvement in key areas of activity.
Within these headings are 40 detailed principles. Among the most important are:
• not to remove primary forest;
• not to use fire for clearing areas designated for new or replanting;
•
•
to follow accepted soil and water conservation practices;
to use agrochemicals in ways that do not endanger health or the environment and to promote non-chemical
methods of pest management;
to leave wild areas for wildlife corridors, water catchment and riparian protection;
•
• provide full treatment of mill effluent water;
• ensure the wishes of local communities and individuals are taken account of; and
•
to pay to individuals with residual rights over land only freely agreed compensation, in addition to following
government land regulations.
AEP seeks to comply with these principles in all areas of its activities. Some of the measures taken for environmental
protection are disclosed and updated in the company’s website from time to time.
Lim Tian Huat
Chairman, Nomination and Corporate Governance Committee 21 April 2023
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Audit Committee Report
Composition
The Audit Committee had five meetings in 2022, which were attended as follows:
Lim Tian Huat (Chairman of Committee)
Farah Suhanah Tun Ahmad Sarji
Jonathan Law Ngee Song*
Dato’ John Lim Ewe Chuan*
Attendance
5/5
1/1
3/3
4/4
*Both Mr. Jonathan Law and Dato’ John Lim resigned from the Audit Committee on 25 August 2022 and 19 October
2022 respectively.
The current members have relevant financial and professional experiences to discharge their specific duties with
respect to the Audit Committee. Mr. Lim, in particular, has adequate financial experience to discharge his duties as
the Chairman of the Audit Committee. Please see their qualifications on page 68 and 69.
Mr. Lim participated in four external courses and seminars in 2022 mainly organised by Malaysian Institute of
Accountants and Ernst & Young. Topics covered were tax, ESG and climate risk impact and Megatrend forum.
Ms. Farah attended three external training in 2022 on Hibah, Will and Intergenerational Wealth, Global Network of
Director Institutes conference and Lessons from the Bench and Bar for Younger Advocate.
Roles of the Audit Committee
Audit Committee is responsible for:
monitoring the integrity of the financial statements and reviewing formal announcements of financial performance
and significant reporting issues and judgements that such statements and announcements are fair, balanced and
understandable for shareholders to assess the company’s financial position and performance, business model and
strategy;
monitoring and reviewing the effectiveness of internal financial controls, internal controls and risk management
systems;
making recommendations to the Board in relation to the appointment, reappointment and removal of the external
auditor, their remuneration and terms of engagement;
reviewing and monitoring the independence and objectivity of the external auditor and the effectiveness of the audit
process;
developing and implementing policy on the engagement of the external auditor to supply non-audit services,
ensuring there is prior approval of non-audit services, considering the impact this may have on independence,
taking into account the relevant regulations and ethical guidance in this regard, and reporting to the Board on any
improvement or action required;
reporting to the Board on how it has discharged its responsibilities;
providing advice to the Board on the assessment of the principal risks facing the Group; and
providing advice to the Board on the form and basis underlying the longer-term viability statement and going
concern statement in the Annual Reports.
The Committee monitors the engagement of the auditor to perform non-audit work. The ethical standard of International
Standards on Auditing requires the external auditor to evaluate threats to their independence and discuss this with the
Audit Committee. Whilst it is the Group's ultimate responsibility to ensure that it does not engage the external auditor
in any prohibited services, the external auditor will also be responsible for maintaining a record of all non-audit services
undertaken and for ensuring that they do not undertake any of the prohibited services. To ensure that the external
auditor satisfies these ethical standards on auditing, the Group had decided not to engage the external auditor for non-
audit services for the Company and its affiliates except for the review of the interim report for compliance before
announcement. The Committee considered that the nature and limited scope of, and remuneration payable in respect
of, this engagement was such that the independence and objectivity of the auditor were not impaired.
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The members of the Committee discharge their responsibilities by formal meetings and informal discussions between
themselves, by meeting with the external auditor, the internal auditors and management and by consideration of reports
by management and by holding at least two formal meetings in each year.
It receives reports from executive management in Indonesia and Malaysia and focuses principally on reviewing reports
from management and considers whether significant risks in the Group are identified, evaluated, managed and whether
significant weaknesses are promptly remedied including, but not limited to, commodity price movements, exchange
rate movements, political and social, government legislation and climate change. Where necessary the Committee
also seek independent advice from professionals and experts.
Overview
During the year, the Committee reviewed and discussed the 2021 Annual Report, 2022 Interim Results, 1st Quarter
and 3rd Quarter Trading Statement for 2022. The Committee also deliberated and recommended to the Board the
dividend rate for the Company.
The Committee updated the risks register chart annually and deliberated on the probability of various material risks
from occurring and the resulting financial impact should the risks materialise. The Committee concluded that produce
prices continued to be the biggest risks with high probability of occurring and with high financial impact. The risks of
Covid-19 affecting a major part of business are low considering the geographical spread of its operations but if it does
materialised, the financial impact would be high. With the Group holding a high amount of Indonesian Rupiah, the risks
of currency exchange rates movement are high with medium financial impact. The country, regulatory and governance
practices, environmental and conservation practice, weather and natural disasters, and other climate and nature risks
have medium likelihood of happening with medium financial impacts. Information technology security risks have
medium likelihood of happening with low financial impacts. All other risks are generally low in financial impact. See
page 31 for the map of principal risks.
The Audit Committee deliberated and set the budget targets for 2023 for the Board’s approval.
The Audit Committee have regular dialogues, both formal and informal, with the senior management in Indonesia and
Malaysia and the discussions are open and constructive.
The Audit Committee followed the progress of the sale of the three plantations in South Sumatera through zoom
meetings and regular reports from the management as well as from the external consulting firm in Indonesia appointed
to help with the sale. Two bids were finally received and the Committee recommended to the Board to accept the
highest offer and an MOU was signed as mentioned on page 73 of this Annual Report. The Committee reviewed and
was satisfied with the terms of the sale as outlined in the MOU. Our lawyers, including an external lawyer, were involved
in the finalisation of the MOU prior to being sign by the Company. Please see page 10 of the Chairman’s Statement
on the sale progress.
The Senior Internal Audit Manger presented his Internal Audit plan for the year which was approved by the Audit
Committee. He also presented his audit findings and interacted with members of the Audit Committee in two of the
meetings. Internal audit reports were tabled and discussed in detail in three of the Audit Committee meetings in 2022.
Before finalizing the 2022 accounts, the Audit Committee conducted a stress test, premise on the shutdown of the
entire Group’s estates and mills operation for a year as a result of Covid-19 or any other circumstances including
natural calamities and strikes. Based on this scenario, the cash flow projections showed that the Group has sufficient
resources to continue operating as a going concern for the next five years.
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External Audit
BDO LLP are the external auditors. The engagement Partner who has overall responsibility for the audit is Nigel Harker
who is in his third year of engagement with the Group. He is supported by a Group Audit Senior Manager, an Audit
Manager and a Partner from their firm in Indonesia, who is responsible for the audit of the Indonesian components.
BDO has a policy of rotation of the senior members of the engagement team on a gradual basis in order to safeguard
its ethical standard on independence and at the same time also ensuring a certain level of continuity from year to year.
The Committee formally met with the external auditor twice in 2022 to discuss the audit findings of 2021 and to plan
the audit for 2022 financial year. The external auditor, during the audit planning, highlighted to the Audit Committee
their scope of audit and their assessment of areas of audit risks. The significant risks include impairment of land and
bearer plants, existence and recoverability of amounts due from cooperatives under the plasma scheme, accounting
and disclosure of assets held for sale and discontinued operations, revenue recognition in connection with revenue
contracts awarded to related parties and the manipulation of the tender process, completeness of related party
transactions, management override of controls including kickbacks on purchase of FFB from third parties and
unauthorised payments from online banking and valuation of biological assets.
Bearer plants, held as property, plant and equipment, together with estate land are valued at historical cost (IAS 16).
Under IAS 36 - Impairment of Assets, an entity is required, at the end of each reporting period, to assess whether there
is any indication that an asset may be impaired, or if a previously recognised impairment should be reversed. The palm
oil industry is likely to be heavily impacted by climate change and sustainability which will need to be factored into any
impairment considerations. This includes, but is not limited to, the physical damages such as flooding and the impact
on plantation growth of rapid changes in weather patterns, as well as the transitional risks such as changes in
government policy on the use of palm oil and changes in global temperature and sea levels. The determination requires
the use of management judgement and complex assumptions, therefore there is a risk that this value may be
determined incorrectly.
AEP hold amounts due from cooperatives under the plasma programmes within non-current receivables on the
statement of financial position. In some instances where the cooperatives are granted a loan, AEP will provide the
guarantee for that loan, in which case AEP will assess the likelihood of their ability to repay this loan in order to
determine the correct accounting treatment. There is a risk that the receivables due from cooperatives may not be
recoverable and an additional risk that, where a guarantee is given against a loan and there is a default, in which case
AEP will become liable. In both cases expected credit losses (“ECL”) may be recognised in accordance with IFRS 9 -
Financial instruments. The auditors also consider fraud risk that management could charge non plasma related
expenditure to plasma receivable to keep it out of the Income Statement.
As explained earlier, the management has signed an MOU to dispose three of the Group’s plantations located in South
Sumatera. Under IFRS 5 - Non-current assets held for sale and discontinued operations sets out specific criteria to be
met for the relevant assets and liabilities to be classified as “held for sale” and for the respective operations to be
classified as “discontinued”. Management performed an assessment and considered all criteria to have been met prior
to 31 December 2021 and 31 December 2022 therefore classified them as such in the prior year financial statements.
This area is considered a risk to the significant management judgement involved in determining that the IFRS 5 criteria
have been met. In addition to this, there is a requirement to remeasure the relevant assets to fair value less costs to
sell which is considered as an associated fraud risk.
The Group awards significant revenue contracts to a relatively small number of customers throughout the year via a
weekly tender process. There is a risk that these contracts could be awarded to related parties at a price which would
not be considered a valid market price. There is a further risk that these transactions may not be identified and
disclosed appropriately in accordance with IAS 24 ie related party disclosures.
IAS 24 requires disclosure of related party relationships, transactions and outstanding balances, including
commitments, in the financial statements. The controlling shareholder has interest in a number of other entities, some
of which already have transactions with the Group as disclosed in the Group financial statements. The family business
orientated culture in Indonesia and Malaysia therefore increases the risk that related party disclosures are incomplete.
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Audit Committee Report
There is an associated fraud risk on the basis that management may be incentivised to conceal related party
transactions that were not conducted at an arm’s length or were transacted for personal gain.
The Audit Committee ensured completeness of related party transactions by requiring all Directors and key personnel
to disclose any related party relationships, transactions, outstanding balances including financial commitments directly
or indirectly with the Group via a signed prescribed form for this purpose. The Audit Committee may carry out third
party search, if applicable.
The risk of fraud due to management override of controls due potentially to performance obligations linked to
compensation or shareholders’ expectations could be achieved by manipulating judgements and estimates or through
the posting of journals in accounting records.
The unharvested produce on the bearer plants at the year end falls within the scope of IAS 41 and is held as a current
asset at fair value less costs to sell. Management exercises significant judgement in determining the underlying
assumptions used in the calculation of fair value. Due to the reliance on external sources for some of the assumptions,
there is a risk that their fair value might be under or overvalued.
During the year the Committee carried out an assessment of the effectiveness of the external audit process. The
assessment was led by the Chairman of the Audit Committee, assisted by the Executive Director, Senior General
Manager and the Group Accountant and focused on certain criteria which the Committee considered to be important
factors in demonstrating an effective audit process. These factors included the quality of audit staff, the planning and
execution of the audit according to agreed plans and timeline, provision of sound advice on technical issues and degree
of independence and professionalism displayed during the audit for 2021. The tenure of audit and extent of non-audit
work that will affect the independence of the auditor were reviewed. During 2022, the non-audit work undertaken by
BDO LLP (UK) was on the review of the interim report for compliance before the announcement. The Committee
considered the nature, limited scope of engagement and remuneration paid were such that the independence and
objectivity of the auditor were not impaired. Fees paid for audit and non-audit services are provided in note 5. The
Committee considered the key members of the audit engagement team and component auditors involved in the Group
Audit. This includes the Audit Partner and the Audit Manager from BDO LLP (UK) and the Partner from BDO in
Indonesia. Broadly, the same team from last year conducted the audit. Following this assessment, the Committee
concluded that the external audit process remained effective, and that the objectivity of the external auditor was not
impaired and that it provides an appropriate independent challenge of the senior management of the Group.
Internal control
The Company has followed the Code provisions on internal control since 1999 and the Guidance on Risk Management,
Internal Control and Related Financial and Business Reporting issued by the Financial Reporting Council in 2014. The
Board has overall responsibility for the Group’s systems of internal control and risk management and for reviewing its
effectiveness. Such a system is designed to manage, rather than eliminate, the risk of failure to achieve business
objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The
Audit Committee reviews and monitors specific risks and internal control procedures and reports to the Board where
appropriate. Executive staff and Directors are responsible for implementation of control procedures and for identifying
and managing business risks.
The Group has in-house internal auditors who visit operating sites in Indonesia regularly based on an approved Internal
Audit Plan and provide summarized internal audit reports to the Audit Committee on a regular basis. The Internal Audit
also conducts special audits throughout the year as and when required by management. The internal audit team
provides objective assurance as to the effectiveness of the Group’s systems of internal control and risk management
of the Group’s operating management to the Committee. Follow-up audits and discussions are also held to ensure
remedial actions are taken promptly. The internal audit review is a continuous and sequential process and in any one
year does not necessarily cover all risks which are significant to the Group. The process aims to provide reasonable
assurance against material misstatement or loss but cannot eliminate the risk of loss.
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During the year Deloitte Indonesia completed their internal audit of the SGM estate and mill under co-sourcing
arrangement and reported their findings to the Audit Committee. Under the co-sourcing arrangement, Deloitte will
assign experienced personnel to work with AEP internal audit team in performing the internal audit review. The internal
audit focused on areas such as procurement, inventory management, fixed asset management and payroll and wages.
Co-sourcing allows the Group to gain access to specialists and industry leaders on best practice guidelines to
effectively improve our internal audit methodology and approach used in planning, execution and reporting which could
enrich the internal audit team capabilities. Deloitte identified weaknesses and gaps on the operation policies and
procedures and notable improvements are required to the existing guidelines and practices.
Deloitte also conducted an audit workshop for the internal audit team which touched on internal audit methodology
and cycle, common mistakes in internal audit, introduction to data analytics, together with and how to apply these tools
in executing internal audit projects and writing management report.
Lim Tian Huat
Chairman, Audit Committee 21 April 2023
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Directors’ Remuneration Report
Overview
I am pleased to report on the activities of the Remuneration Committee for the year ended 31 December 2022. This
report sets out the remuneration policy and remuneration details for the Executive and Non-Executive directors of the
Group. It has been prepared in accordance with Schedule 8 of SI 2008/410 Large and Medium-sized Companies and
Groups (Accounts and reports) Regulations 2008.
The Companies Act 2006 requires the auditor to report to the shareholders on certain parts of the Directors’
Remuneration Report and to state whether, in their opinion, those parts of the report have been properly prepared in
accordance with the Regulations. The parts of the annual report on remuneration that are subject to audit are indicated
in that report. The report by the Chairman of the Remuneration Committee and the policy statement are not subject to
audit.
Activities
During the year the Remuneration Committee reviewed the annual increment and bonus entitlement of senior
management in Indonesia. In considering the bonus for 2022, the Committee took into account the achievement of the
key performance criteria related to crop productions, purchases of third-party crops, rate of new planting, oil extraction
rates and implementation of cost reduction measures. It also made informal comparisons with other plantation
companies in respect of bonus payment for the year. In addition, it also took into consideration Covid-19 allowance
previously paid to alleviate the hardship caused by the pandemic in evaluating the entitlement of bonus to the
employees.
As part of succession, an expatriate plantation manager retired during the year and was replaced by a younger
expatriate manager. The contracts for two senior personnel were also extended during the year.
With the change in composition of the Board, the Committee took the opportunity to review the fees for Non Executive
Directors and benchmark it to medium sized plantation companies in the UK and Malaysia, following which the
Committee recommended to the Board to set the Non-Executive Directors fees from 2023 at a range of $27,000 to
$41,000 which is more reflective of similar size listed plantation companies. The fees of each Non-Executive Director
varies based on their responsibilities and appointment to various committees. The Committee believes that the new
fees structure for Non-Executive Directors would be conducive for new talents when there is a need to appoint new
directors on to the Board.
During the year the Committee deliberated and renewed the contracts of two directors. Mr. Jonathan Law who has
completed his nine years of service was appointed as the Non-Executive Chairman for a two years term after the
retirement of the late Madam Lim. His fee was fixed as $40,000 per annum (or RM180,000 per annum) and revised to
$54,000 per annum from 2023. Dato’ John Lim’s contract was renewed for two years and his salary as the Executive
Director was set at £90,000 per annum from September 2022 and revised to £120,000 per annum from 2023 as he is
expected to play a greater role going forward. None of the directors were involved in deciding the renewal and the
compensation of their own contract. Measures to avoid or manage conflicts of interest are in the declarations of all
Directors and senior managers in respect of related party transactions as detailed on page 79. The Committee believes
that the new remuneration packages should continue to motivate and reward individual performance in a way
consistent with the best interest of the Company and its stakeholders. The Committee also deliberated on the 2022
Remuneration Report and recommended to the Board for acceptance.
As part of the engagement of AEP workforce, the Chairman of Remuneration Committee conducted an online meeting
with employees’ representatives and heads of employees’ cooperatives in Sumatera and Kalimantan to discuss and
obtain feedback on issues relating to their safety and welfare, working conditions, remuneration and suggestions to
improve productivity. The meetings were productive and concluded that workers were generally happy and satisfied.
Representatives expressed their appreciation to AEP for the continued financial assistance during the period of the
pandemic, flash floods and landslides. Employees also expressed their gratitude for the construction of new housing
and retention wall to improve employees’ living conditions and safety. Some were happy that the Company followed
up on their requests to drill additional deep wells in dry locations for them to access clean water. However,
representations were made to the Company to pay bonuses promptly and in one lump sum rather than by two
instalments to enable them to meet their domestic expenses. There were also requests for additional sporting facilities
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Directors’ Remuneration Report
like football field in Division three of Bengkulu to host inter estates games, more technical training for mill employees,
access to reskilling courses for those who are retiring but would prefer to continue working and to resume annual social
gathering for employees which was discontinued during the pandemic. The representatives also urged the Company
to work closely with State Electricity Company (“PLN”) to speed up electrification of some remote estates in Bengkulu
and Kalimantan as currently in-house generators do not provide round the clock electricity supplies.
The Remuneration Policy was previously voted and approved by the shareholders at the 2020 AGM and has been
effective from 1 January 2020 for three years. However, in view of the changes in the level of compensations for
directors from 2023 onwards, the Board will be seeking shareholders’ approval for the revised Remuneration Policy
with Resolution 3 at the forthcoming AGM on 16 June 2023. The policy is disclosed on pages 84 and 85.
Under the existing Company’s Article 95, the total remuneration of directors (other than a director holding an executive
office) may not exceed £100,000 per annum. The Company seeks shareholders’ approval to amend this Article 95 and
to increase the limit to £250,000 per annum. Please refer Resolution 16 in the notice of AGM for further details. This
revision will also help to accommodate the recruitment of additional directors should the Board desires to do so at a
later time.
The Committee welcomes your support for our Remuneration Policy and the Remuneration Report.
Composition
The Remuneration Committee had three meetings in 2022, which were attended as follows: -
Farah Suhanah Tun Ahmad Sarji (Chairman of Committee)
Lim Tian Huat
Jonathan Law Ngee Song*
Dato’ John Lim Ewe Chuan*
Attendance
-
3/3
2/2
3/3
*Both Mr. Jonathan Law and Dato’ John Lim resigned from the Remuneration Committee on 25 August 2022 and 19
October 2022 respectively.
Voting at Annual General Meeting
The Remuneration policy was last voted and approved in 2020. In that meeting, the shareholders voted in the following
manner:
To approve Remuneration policy
Shares For
23,029,499
Shares Against % Shares For % Shares Against
703,113
97.0%
3.0%
It is the Company’s policy to vote on the Remuneration policy once every three years or if there is a change in the
policy within the three years.
The Director’s Remuneration report was last approved at Company’s AGM on 27 June 2022. In the meeting, the
shareholders voted in the following manner:
To approve Directors’ Remuneration Report
Shares For Shares Against % Shares For % Shares Against
22,527,524
94,364
99.6%
0.4%
The Company pays due attention to the results of voting. When there is substantial vote against any resolution in
relation to Directors’ Remuneration, the reason for any such vote is sought and any action in response will be reported
in the following year.
The Listing Rules require the re-election of independent directors in companies with a controlling shareholder to be
voted separately by independent minority shareholders in addition to the approval of all shareholders. The results of
the re-election of the independent directors in the 2022 AGM were:
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Directors’ Remuneration Report
By all shareholders:
Re-election of Mr. Lim Tian Huat
Re-election of Mr. Jonathan Law Ngee Song
22,395,477
22,507,860
226,453
114,070
99.0%
99.5%
1.0%
0.5%
Shares For Shares Against % Shares For % Shares Against
By independent shareholders:
Re-election of Mr. Lim Tian Huat
Re-election of Mr. Jonathan Law Ngee Song
1,843,563
1,955,946
226,453
114,070
89.1%
94.5%
10.9%
5.5%
Shares For Shares Against % Shares For % Shares Against
Policy of the Remuneration Committee
The Committee sets the remuneration and benefits of the Executive Director and Non-Executive Directors.
When determining Executive Director’s remuneration, the Committee reviews the pay policy and levels for executives
below the Board, as well as pay and conditions of employees throughout the Group. Other factors considered are
individual performance, market conditions, the Company’s performance, pay and employment conditions of its other
employees in the organisation and the need to maintain an economic operation.
The policy of capping the executive director’s salary at £90,000 per annum was in 2014. Given the absence of a review
since 2014 and that the Executive Director is the de facto CEO, who has taken a greater role in the Group, the
Remuneration Committee proposed and the Board approved to revise the salary cap for the Executive Director as
follows; plus benefits commensurate of an executive director.
Type
Base salary
Purpose
Maximum payment
To contain fixed costs. Capped at £150,000. The cap is reviewed periodically.
The policy permits the cap to be changed if this is deemed
necessary to meet business, legislative or regulatory
requirements.
The table below summarises the key aspects of the Group’s Remuneration Policy for the Non-Executive Directors.
Type
Fees
Purpose
To attract and retain
individuals with suitable
knowledge
and
experience.
Maximum payment
Determined by the Board within the limits set by the
articles of association and by reference to comparable
organisations and to the time commitment expected.
The Committee periodically assesses the remuneration of the Non-Executive Directors and submits a proposal to the
Board. Non-Executive Directors’ remuneration consists exclusively of a fixed payment. The Non-Executive Directors
receive no benefit such as share options or other performance-related elements.
The Committee makes recommendations on senior management pay and conditions, after consultation with the
Chairman. In determining the remuneration policy of senior management, the Committee takes into account the need
to attract, retain and motivate employees. To promote long-term sustainable success, the Committee makes external
comparison with the current market trends and practices of equivalent roles considering the size, business complexity
and relative performance. The following is a summary of the key components of remuneration packages of senior
management:
Base salary
Base salaries of senior management are reviewed on an annual basis by the Remuneration Committee or when there
is a change in the individual’s responsibilities. The Group does not seek the advice of an external consultant in
determining the salaries of senior management and directors.
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Directors’ Remuneration Report
Bonus
The Group operates a bonus scheme for the Executive Director, senior executives and managers of operating units,
which is determined by weighted performance criteria including crop production, external crop purchase, increases in
planted area, efficiency of mill performance and overall profitability. There is however no bonus scheme for any of the
Non-Executive Directors for good governance.
The operating units in Indonesia and Malaysia have in place a variable compensation policy which over the recent
years rewarded senior executives and employees with bonuses ranging from one to eight months’ pay based on the
individual’s and operating units’ performance. The key criteria used in the determination of the variable compensation
policy for the bonus was revised in 2014 following discussion and consultation with the Company’s previous Chairman.
Share options
The UK and overseas executive share option schemes of the Company are administered and supervised by a
committee consisting, in the majority, of Non-Executive Directors. These schemes are limited over their ten-year life
to issuing no more than 10% of the issued ordinary share capital of the Company from time to time. They provide for
options to be granted over treasury shares as well as over new shares. To avoid dilution, the Board intends generally
to follow the treasury share route.
Individual grants vest over three years. The total grant to each holder is determined by seniority and total market value
at the date of grant is normally limited to two times base salary. Exercise of options is only permitted three years after
grant, provided that the holder remains an employee of the Group throughout the period. There are no other
performance criteria for exercise of options granted so far. The Company has not issued any share options to any
Directors after 2004. No one in the Company has vested or unvested shares.
The above option schemes have expired and the Remuneration Committee is evaluating newer schemes which are in
use by commercial entities to reward and to retain the services of senior management.
Pensions
The operating units in Indonesia participate in mandatory pension schemes for their local executives and management.
There is no company-sponsored scheme for senior executives outside of Indonesia. The Remuneration Committee is
in the process of introducing an appropriate gratuity scheme, based on length of service, for senior management and
executives who are not covered by the group-sponsored scheme.
No employees or shareholders are specifically consulted on the remuneration policy of the Company. If a significant
shareholder expresses a particular concern regarding any aspect of the policy, the views expressed would be carefully
weighed.
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Directors’ Remuneration Report
Annual Report on Remuneration
Directors’ remuneration (audited)
The following part provides details of the remuneration of all the Directors for the year ended 31 December 2022. The
numerical components of these disclosures have been audited in accordance with Section 421 of the UK Companies
Act 2006.
The remuneration of all Directors who served during the year was:
Audited information
Name of Directors
Executive:
Dato' John Lim Ewe Chuan (1)
Non-Executive:
Jonathan Law Ngee Song (2)
Lim Tian Huat (3)
Marcus Chan Jau Chwen (4)
Farah Suhanah Tun Ahmad Sarji(5)
Lim Siew Kim (6)
Total
Total 2022 Fixed
Remuneration
Total 2021 Fixed
Remuneration
$000
$000
93
31
23
11
6
30
194
87
21
21
-
-
58
187
Directors’ remuneration comprises of directors’ fees only. There were no other benefits, pensions, bonuses or share option expenses in
respect of the Directors.
Unaudited information
Notes:
(1) Appointed as Executive Director on 1 September 2010. Previously was the Senior Independent Non-Executive Director.
(2) Appointed as Chairman on 8 July 2022. Previously was the Non-Executive Director.
(3) Appointed on 8 May 2015.
(4) Appointed on 10 August 2022.
(5) Appointed on 20 October 2022.
(6) Retired on 8 July 2022.
Executive Director’s/de-facto CEO’s Remuneration over 10 Years
Year ended 31 Dec
Salary
Benefit
Pension
Bonus
Total
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
$93,000*
$87,000*
$103,000*
$116,000*
$123,000*
$113,000*
$127,000*
$137,000*
$133,000
$117,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$93,000
$87,000
$103,000
$116,000
$123,000
$113,000
$127,000
$137,000
$133,000
$117,000
% of maximum
payment cap
48%
70%
90%
100%
100%
100%
100%
100%
89%
100%
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Directors’ Remuneration Report
* The Executive Director’s basic salary on renewal of contract in September 2022 was revised from £5,250 per month
(or £63,000 per annum) to £7,500 per month (or £90,000 per annum). The Executive Director’s salary from 2015 to
2019 was £90,000 per annum. The fluctuations during this period were the result of exchange translations.
Relative importance of spend on pay
$'000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
-
62,390
55,996
396
1,982
2021 2022 2021 2022
Total Group Employee Remuneration
Total Dividend Paid
Directors’ interests (audited)
The interests of the Directors together with those of their immediate families in the securities of the Company were as
shown below:
Directors' beneficial interests at 31 December:
2022
Ordinary shares
Marcus Chan Jau Chwen
Jonathan Law Ngee Song
Dato’ John Lim Ewe Chuan
Lim Tian Huat
Farah Suhanah Tun Ahmad Sarji
-
-
-
-
-
2021
Ordinary shares
-
-
-
-
-
The ultimate beneficial shareholders of Genton International Limited are vested in the estates of Madam Lim with the
application for probate in progress.
There has been no change in the interests of the Directors in the securities of the Company between 31 December
2022 and the date of this report, other than Dato’ John Lim who purchased 15,894 of the Company’s ordinary shares
in March 2023. Other than Dato’ John Lim, none of the Directors had any interest in the securities of the Company
between the date of their appointments and the date of this report. There is no requirement for Directors to hold shares
in the Company. Other than as set out in notes 7 and 24 to the consolidated financial statements, no Director had a
material interest in any contract of the Company subsisting during, or at the end of the financial year. No directors had
any share options in the current or prior year.
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Directors’ Remuneration Report
Percentage annual change in Directors’ remuneration and for employees over FY2022 (not subject to audit)
The Directors have service agreements with AEP Plc, the parent company. The Company has no employees other
than the directors therefore voluntary disclosure has been given based on the Group’s employee information.
The table below shows the annual change in the Directors’ pay compared with the Group’s average pay for an
employee for 2019 to 2022.
Annual change in pay for Directors compared with the Group’s average employees
Executive
Director
Dato’ John
Lim Ewe
Chuan
+7%
-
-
2021/2022
Base
Salary/fees
Benefits
Bonus
Non-Executive Directors
Jonathan Law
Ngee Song
Lim Tian Huat
Marcus Chan
Jau Chwen
Farah
Suhanah Tun
Ahmad Sarji
Group’s
Average
Employees
+48%
-
-
+10%
-
-
-
-
-
-
-
-
+6%
+55%
+36%
Annual change in pay for Directors compared with the Group’s average employees
Executive
Director
Dato’ John
Lim Ewe
Chuan
-16%
-
-
Non-Executive Directors
Jonathan Law
Ngee Song
Lim Tian Huat
Marcus Chan
Jau Chwen
Farah
Suhanah Tun
Ahmad Sarji
Group’s
Average
Employees
-
-
-
-
-
-
-
-
-
-
-
-
+12%
-5%
+32%
Annual change in pay for Directors compared with the Group’s average employees
Executive Director
Dato’ John Lim Ewe
Chuan
Non-Executive Directors
Madam Lim
Siew Kim
Lim Tian Huat
Jonathan Law
Ngee Song
-11%
-
-
-4%
-
-
-
-
-
-
-
-
Group’s
Average
Employees
-6%
+13%
-13%
2020/2021
Base
Salary/fees
Benefits
Bonus
2019/2020
Base
Salary/fees
Benefits
Bonus
1. Directors’ remuneration comprises of Directors’ fees only.
2. All Directors fees are paid in other currencies.
3. Mr. Jonathan Law’s fees increased as a result of his appointment as the Chairman from 8 July 2022.
4. Mr. Lim Tian Huat’s and Dato’ John Lim’s fees increased following the renewal of their contracts in May 2022
and September 2022 respectively.
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Directors’ Remuneration Report
Service contracts
All Directors, Executive and Non-Executive, have formal appointment letters. The Executive and Non-Executives are
appointed normally on a one to two-year term with notice periods of one month to two months. The service contracts
are kept at the registered office and may be inspected by shareholders on request. Notice periods for all other senior
management are generally two months. Therefore, any remuneration payment for loss of office will be capped at a
maximum of two months. It is not the Company policy to include provisions in directors’ service contracts for
compensation for early termination beyond providing for an entitlement to payment in lieu of notice if due notice is not
given.
The unexpired term of the retiring Directors are:
Jonathan Law Ngee Song
Dato’ John Lim Ewe Chuan
Lim Tian Huat
Marcus Chan Jau Chwen
Farah Suhanah Tun Ahmad Sarji Expiry 19 October 2024
Expiry 6 July 2024
Expiry 31 August 2024
Expiry 7 May 2023
Expiry 9 August 2024
Performance Graph
The performance graph is set out on page 4 and shows the Company’s share price performance compared to the
FTSE 100 index for the period of 2013 to 2022 (last ten years) to indicate the volatility and trend of the market generally.
Except for two brief periods, our share price had underperformed the FTSE 100 index. In determining senior
management compensation, the Remuneration Committee is influenced by the operating performance of the Company
and not directly by the share price. The FTSE 100 index has been selected for this comparison as there is no index
available that is specific to the activities of the Company. Despite reporting stellar earnings, the share performance is
likely held back by ESG concerns, reflecting a disconnection between earnings, CPO prices and company’s valuation.
Investors see plantation companies as contributing to deforestation, open burning, high carbon emissions and labour
related issues.
Farah Suhanah Tun Ahmad Sarji
Chairman, Remuneration Committee 21 April 2023
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Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
Opinion on the financial statements
In our opinion:
•
•
•
•
the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s
affairs as at 31 December 2022 and of the Group’s profit for the year then ended;
the Group financial statements have been properly prepared in accordance with UK adopted International
Accounting Standards;
the Parent Company financial statements have been properly prepared in accordance with UK Generally
Accepted Accounting Practice; and
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Anglo-Eastern Plantations Plc (the ‘Parent Company’) and its subsidiaries
(the ‘Group’) for the year ended 31 December 2022 which comprise the consolidated income statement, the
consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated
statement of changes in equity, the consolidated statement of cash flows, the company statement of financial position,
the company statement of changes in equity and notes to the financial statements, including a summary of significant
accounting policies. The financial reporting framework that has been applied in the preparation of the Group financial
statements is applicable law and UK adopted international accounting standards. The financial reporting framework
that has been applied in the preparation of the Parent Company financial statements is applicable law and United
Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United
Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the
financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion. Our audit opinion is consistent with the additional report to the audit
committee.
Independence
Following the recommendation of the audit committee, we were appointed by the Board of Directors on 14 June 2001
to audit the financial statements for the year ended 31 December 2001 and subsequent financial periods. The period
of total uninterrupted engagement including retenders and reappointments is 22 years, covering the years ended 31
December 2001 to 31 December 2022. We remain independent of the Group and the Parent Company in accordance
with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s
Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. The non-audit services prohibited by that standard were not provided to the
Group or the Parent Company.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting
in the preparation of the financial statements is appropriate. Our evaluation of the Directors’ assessment of the Group
and the Parent Company’s ability to continue to adopt the going concern basis of accounting included:
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Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
(continued)
A review of the Directors’ assessment of going concern, including various stress test scenarios, challenge of the
key assumptions used to make this assessment, such as Crude Palm Oil (‘CPO’) price and Fresh Fruit Bunch
(‘FFB’) production tonnage, the impact of a potential shut down of operations due to infectious disease, any
potential impact of the conflict in Ukraine and the impact of the current economic environment including high
inflation and high interest rates. These were assessed by reference to external market forecasts, industry
production trends and experience to date of the impact of the recent Covid-19 pandemic on the Group’s
operations;
A review of the Group’s available cash resources and short term investments as at 31 March 2023; and
A review of the adequacy and consistency of disclosures in relation to going concern in the Group financial
statements with reference to the Directors’ going concern assessment.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions
that, individually or collectively, may cast significant doubt on the Group and the Parent Company’s ability to continue
as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
In relation to the Parent Company’s reporting on how it has applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to the Directors’ statement in the financial statements about
whether the Directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant
sections of this report.
Overview
Coverage
98% (2021: 100%) of Group revenue
92% (2021: 96%) of Group total assets
Key audit matters
1. Impairment of land and plantation assets
2. Accounting and disclosure of assets held for sale and
discontinued operations
2022
2021
*
* Accounting for assets held for sale and discontinued operations is included as a key audit
matter in both the current and prior year but has been expanded to also cover the associated
disclosure in the financial statements.
Materiality
Group financial statements as a whole
US$6.9m (2021: US$6.6m) based on 5% (2021: 5%) of profit before tax before biological asset
movement.
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Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
(continued)
An overview of the scope of our audit
Our Group audit was scoped by obtaining an understanding of the Group and its environment, including the Group’s
system of internal control, and assessing the risks of material misstatement in the financial statements. We also
addressed the risk of management override of internal controls, including assessing whether there was evidence of
bias by the Directors that may have represented a risk of material misstatement.
The Group financial statements are a consolidation of twenty seven companies made up of the Parent Company, a
principal sub-holding company, three management companies, four dormant companies and eighteen operating
companies. Sixteen of the operating companies are located in Indonesia and two in Malaysia. The head office and
main accounting function is located in Kuala Lumpur, Malaysia, with a second accounting function located in Medan,
Indonesia, both at separate locations from the operating companies.
Based on our risk assessment we identified six operating companies which, in our view, were significant components
and required a full scope audit of their complete financial information due to their financial significance and a further
thirteen companies, consisting of one principal sub-holding company, one management company and eleven operating
companies, which required audit procedures on specific areas due to their risk characteristics or where there was a
balance which was material to the Group. Where the companies were located in Indonesia, the audit work was
performed by a BDO network firm in Indonesia and where located in the UK or Malaysia, the audit work was performed
by the Group audit team. Certain additional procedures were performed at Group level by the Group audit team in
respect of the Key Audit Matters, together with audit procedures over the Group consolidation which gave us the
evidence we needed to form our opinion on the Group financial statements as a whole.
The remaining components of the Group were not identified as being significant to the Group and the financial
information of these components were principally subject to analytical review procedures performed by the Group audit
team.
As part of the audit strategy, senior members of the Group audit team attended a number of meetings with management
via video conference. The Senior Statutory Auditor met with the Executive Director in the UK and members of senior
management and the Board, including the Audit Committee, in Kuala Lumpur.
Our involvement with component auditors
For the work performed by component auditors, we determined the level of involvement needed in order to be able to
conclude whether sufficient appropriate audit evidence has been obtained as a basis for our opinion on the Group
financial statements as a whole. Our involvement with component auditors included the following:
As part of our audit planning, we issued group audit instructions to the Indonesian component team and held
remote planning meetings via video conference to discuss the Group and local risks identified and to agree
the testing approach and audit timelines. The planning documentation on the respective audit files was also
discussed and reviewed by senior members of the Group audit team during a visit to Indonesia. The Senior
Statutory Auditor also visited Indonesia at the planning stage to meet the component team and discuss the
audit approach.
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
(continued)
• A further visit to Indonesia was conducted by the same senior members of the Group audit team to perform
a review of the complete audit files for the six companies located in Indonesia considered to be significant
and to review the relevant audit work in relation to the specific areas identified for the remaining companies
located in Indonesia considered to be significant due to their risk characteristics or material balances.
Following the review, any further work required by the Group audit team was performed by the component
auditors and reviewed by the Group audit team via video conference and remote access to the audit files.
The component auditors visit the plantation estates on a rotational basis so that each estate is visited at least
once every three years and a memorandum is prepared to document this which was reviewed by the Group
audit team.
• At the completion stage, we attended closing meetings with the local audit team via video conference and
reviewed their reporting, addressing risks and specific procedures raised. Discussions were held with Group
management on the findings from our audit, including adjustments raised.
Climate change
Our work on the assessment of potential impacts on climate-related risks on the Group’s operations and financial
statements included:
Enquiries and challenge of management to understand the actions they have taken to identify climate-related
risks and their potential impacts on the financial statements and adequately disclose climate-related risks
within the annual report;
Our own qualitative risk assessment taking into consideration the sector in which the Group operates and
how climate change affects this particular sector; and
Review of the minutes of Board and Audit Committee meetings and performed a risk assessment as to how
the impact of the Group’s commitment as set out in the Strategic Report may affect the financial statements
and our audit.
We challenged the extent to which climate-related considerations, including the expected cash flows from the initiatives
and commitments have been reflected, where appropriate, in the Directors going concern assessment and viability
assessment.
We also assessed the consistency of the disclosures included as Statutory Other Information on pages 37 to 57 with
the financial statements and with our knowledge obtained from the audit.
Based on our risk assessment procedures, we did not identify there to be any Key Audit Matters materially impacted
by climate-related risks.
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Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
(continued)
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified, including those which had the greatest effect on: the overall audit
strategy, the allocation of resources in the audit, and directing the efforts of the engagement team. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
Key audit matter
Impairment of land and plantation assets
(note 2(g), note 2(j) and note 12)
Land and plantation assets (‘bearer plants’) fall within
the scope of IAS 16 Property, Plant and Equipment
and are held at historical cost less depreciation. At the
end of each reporting period, the Directors are
required to assess whether there is any indication that
an asset may be impaired, or whether there is an
indication that a previously recognised impairment
may be reversed. If any such indication exists, the
Directors shall estimate the recoverable amount of
the asset.
The Directors have identified two estates with such
indicators and, having engaged an external expert,
have carried out an impairment review, calculating the
recoverable amount. The Directors exercise
significant judgement in determining the underlying
assumptions used in this calculation, considered to be
Crude Palm Oil (‘CPO’) price and the discount rate,
for which disclosure is given around their sensitivity.
We identified the impairment of land and plantation
assets as a key audit matter due to the significant
judgement and assumptions
its
assessment.
involved
in
How the scope of our audit addressed the key audit
matter
We performed our own assessment for indicators of
impairment or impairment reversal across all plantations
based on performance against production budget.
We assessed the independence, capabilities, objectivity
and competence of management’s expert.
We challenged the assumptions made by the expert and
management and appropriateness of data used through
discussions with management and management’s expert,
corroboration to independent external data sources in
respect of CPO price and, where available, through
corroboration to supporting documentation and historical
trends.
the use of our
With
internal valuations expert we
recalculated the discount rate to determine an acceptable
range which was compared to the rate calculated by
management’s expert.
We performed sensitivity analysis on the CPO price and
discount rate assumptions.
The calculations to support the disclosures given in respect
of the sensitivity of CPO price, discount rate and inflation
rate were re-performed and we checked completeness
against the requirements of the applicable accounting
standards.
Key observations: Based on the procedures we performed, we found the key assumptions used by the Directors
in assessing any impairment losses to be recognised to be materially correct.
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
(continued)
Key audit matter
How the scope of our audit addressed the key audit matter
Accounting and disclosure of assets held
for sale and discontinued operations
(note 2(r) and note 9)
identified
three of
During the year ended 31 December 2021, the
the Group’s
Directors
subsidiary companies for a planned disposal
through sale and categorised the appropriate
assets as held for sale in accordance with IFRS
for Sale and
5 Non-current Assets Held
Discontinued Operations. These companies
were also deemed to meet the criteria for
discontinued operations and were presented as
such in the consolidated income statement.
At 31 December 2022, these three subsidiary
companies remain unsold and the assets have
continued to be categorised as held for sale and
presented as discontinued operations in the
consolidated income statement.
We identified the accounting and disclosure of
assets held
for sale and discontinued
operations as a key audit matter due to the
significant judgement involved in assessing
whether the IFRS 5 criteria for held for sale and
discontinued operations have continued to be
met and the significant assumptions involved in
determining the fair value less costs to sell of
the relevant non-current assets on subsequent
remeasurement.
We reviewed the IFRS 5 criteria assessment prepared by
management and compared this with our understanding of the
facts and circumstances to determine whether the requirements
of IFRS 5 to disclose the assets as held for sale and the
operations as discontinued continue to be met as at 31 December
2022.
We gained an understanding of the current status of the sale
process through discussion with management and review of
documentation provided to support their treatment of the three
companies.
We identified all assets and liabilities of the three subsidiary
companies planned for sale at the balance sheet date from their
individual entity records and reconciled these to the value of the
disposal group.
We confirmed the appropriateness of all items which were
included within the disposal group in accordance with IFRS 5 and
agreed their carrying values prior to classification to underlying
component records.
We checked the arithmetic accuracy of management’s calculation
of impairment losses on subsequent remeasurement following
initial classification as held
the
reasonableness of the assumptions made by management in
determining the likely proceeds achievable from a sale of the
assets held for sale and corroborated these against an offer
received from a potential buyer.
for sale and considered
We confirmed the appropriate extraction of data from financial
records for disclosure as held for sale and discontinued
operations and confirmed their compliance with the disclosure
requirements of IFRS 5.
Key observations: Based on the procedures we performed, we found the classification of assets held for sale and
discontinued operations and the key assumptions used by the Directors in assessing any impairment losses
subsequent to initial classification to be appropriate.
Our application of materiality
We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of
misstatements. We consider materiality to be the magnitude by which misstatements, including omissions, could
influence the economic decisions of reasonable users that are taken on the basis of the financial statements.
In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a
lower materiality level, performance materiality, to determine the extent of testing needed. Importantly, misstatements
below these levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified
misstatements, and the particular circumstances of their occurrence, when evaluating their effect on the financial
statements as a whole.
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
(continued)
Based on our professional judgement, we determined materiality for the financial statements as a whole and
performance materiality as follows:
Group financial statements
Parent Company financial
statements
Materiality
2022
US$6,900,000
2021
US$6,600,000
2022
US$1,057,000
2021
US$1,200,000
Basis for determining
materiality
5% of profit before tax before biological
asset movement
2% of total assets
Rationale for the
benchmark applied
Performance
materiality
Basis for determining
performance materiality
Component materiality
Profit before tax before biological asset
movement was selected as the benchmark
for determining materiality for the Group
financial statements as it is considered to be
the key indicator of the Group’s financial
performance.
the
Total assets was selected as
benchmark for determining materiality
for
financial
statements since it is held primarily for
investment purposes.
the Parent Company’s
US$5,175,000
US$4,950,000
US$792,750
US$900,000
75% of materiality having considered a number of aspects including the expected total
value of known and likely misstatements based on previous assurance engagements
for the Group.
For the purposes of our Group audit opinion, we set materiality for each significant component of the Group, apart from
the Parent Company whose materiality is set out above, based on a percentage of between 13% and 57% (2021: 30%
and 45%) of Group materiality dependent on the size and our assessment of the risk of material misstatement of that
component. Component materiality ranged
to
from US$886,000
US$2,982,000). In the audit of each component, we further applied performance materiality levels of 75% (2021: 75%)
of the component materiality to our testing to ensure that the risk of errors exceeding component materiality was
appropriately mitigated.
to US$3,928,000 (2021: US$1,954,000
Reporting threshold
We agreed with the Audit Committee that we would report to them all individual audit differences in excess of
US$138,000 (2021: US$132,000). We also agreed to report differences below this threshold that, in our view,
warranted reporting on qualitative grounds.
Other information
The directors are responsible for the other information. The other information comprises the information included in
the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial
statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we
do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such
material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to
a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
(continued)
Corporate governance statement
The Listing Rules require us to review the Directors’ statement in relation to going concern, longer-term viability and
that part of the Corporate Governance Statement relating to the parent company’s compliance with the provisions of
the UK Corporate Governance Code specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the
Corporate Governance Statement is materially consistent with the financial statements or our knowledge obtained
during the audit.
Going concern
and longer-term
viability
The Directors' statement with regards to the appropriateness of adopting the going
concern basis of accounting and any material uncertainties identified set out on pages
15 and 16; and
The Directors’ explanation as to their assessment of the Group’s prospects, the period
this assessment covers and why the period is appropriate set out on page 15.
Other
provisions
Code
Directors' statement on fair, balanced and understandable set out on page 67;
Board’s confirmation that it has carried out a robust assessment of the emerging and
principal risks set out on page 31;
The section of the annual report that describes the review of effectiveness of risk
management and internal control systems set out on pages 80 and 81; and
The section describing the work of the audit committee set out on pages 77 to 81.
Other Companies Act 2006 reporting
Based on the responsibilities described below and our work performed during the course of the audit, we are required
by the Companies Act 2006 and ISAs (UK) to report on certain opinions and matters as described below.
Strategic report
and Directors’
report
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Strategic report and the Directors’ report for the financial year
for which the financial statements are prepared is consistent with the financial statements;
and
the Strategic report and the Directors’ report have been prepared in accordance with
applicable legal requirements.
In the light of the knowledge and understanding of the Group and Parent Company and its
environment obtained in the course of the audit, we have not identified material misstatements
in the strategic report or the Directors’ report.
Directors’
remuneration
In our opinion, the part of the Directors’ remuneration report to be audited has been properly
prepared in accordance with the Companies Act 2006.
Matters
on
which we are
to
required
report
by
exception
We have nothing to report in respect of the following matters in relation to which the Companies
Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the Parent Company, or returns
adequate for our audit have not been received from branches not visited by us; or
the Parent Company financial statements and the part of the Directors’ remuneration
report to be audited are not in agreement with the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
(continued)
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation of
the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the
Directors determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and the Parent
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Parent Company
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in
line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including
fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Non-compliance with laws and regulations
Based on:
Our understanding of the Group and the industry in which it operates;
Discussion with management and those charged with governance; and
Our understanding of the Group’s policies and procedures regarding compliance with laws and regulations
we considered the significant laws and regulations to be the Companies Act 2006, the UK Listing Rules, certain
requirements from the UK, Indonesia and Malaysia Finance Acts, the requirements of the Anti-Bribery and Corruption
Acts in the UK, Indonesia and Malaysia, taxation laws in the UK, Indonesia and Malaysia and Indonesian land laws,
and we considered the extent to which non-compliance might have a material effect on the Group financial statements.
The Group is also subject to laws and regulations where the consequence of non-compliance could have a material
effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations.
We identified such laws and regulations to be health and safety legislation and the Indonesian Sustainable Palm Oil
(ISPO) and Malaysian Sustainable Pail Oil (MSPO) certification schemes.
Our procedures in respect of the above included:
Review of minutes of meeting of those charged with governance for any instances of non-compliance with
laws and regulations;
Review of correspondence with regulatory and tax authorities for any instances of non-compliance with laws
and regulations;
Review of financial statement disclosures and agreeing to supporting documentation;
Review of internal audit reports for any weaknesses in this area.
Involvement of tax specialists in the audit; and
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Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
(continued)
Fraud
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk
assessment procedures included:
Enquiry with management and those charged with governance regarding any known or suspected instances
of fraud;
Obtaining an understanding of the Group’s policies and procedures relating to:
o Detecting and responding to the risks of fraud; and
o
Internal controls established to mitigate risks related to fraud.
Review of minutes of meetings of those charged with governance for any known or suspected instances of
fraud;
Review of internal audit reports for any identified fraud;
Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks
of material misstatement due to fraud;
Considering remuneration incentive schemes and performance targets and the related financial statement
areas impacted by these; and
Considering shareholders and management’s future plans for the business and the related impact this may
have.
Based on our risk assessment, we considered the areas most susceptible to fraud to be the management override of
controls, the awarding of revenue contracts to related parties at a non-market rate, the presentation of assets held for
sale and discontinued operations, the inclusion of non-Plasma scheme related expenditure in the amounts receivable
from cooperatives, unauthorised payments from online banking, kickbacks on FFB transactions with third parties and
the disclosure of related party transactions.
Our procedures in respect of the above included:
Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to
supporting documentation;
Assessing significant estimates made by management for bias, including those set out in the Key Audit
Matters section of the report;
Reviewing a sample of minutes of sales tenders to check that a fair process was followed;
Analysing average selling prices for the largest customers against market prices to identify anomalies and
potential related party transactions;
Comparison of disclosed expected recoverable value of assets held for sale against offers received from
external parties (as discussed in the Key Audit Matter above);
Corroboration of a sample of additions to receivables from cooperatives under the Plasma scheme to
evidence of genuine and relevant expenditure;
Analysing the cost of development of Plasma scheme plantations against the costs of development for the
Group’s own plantations to identify anomalies;
Verification of the online banking log for confirmation that all payments had a separate preparer and approver
and that these rights were in line with expectations;
Analysing the average FFB selling and purchase price by customer against market prices to identify
anomalies; and
Obtaining confirmations from all directors and key management personnel to establish the existence of related
party transactions and reviewing these against the disclosure made in the financial statements.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team
members, including component engagement teams, who were all deemed to have appropriate competence and
capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the
audit. For component engagement teams, we also reviewed the result of their work performed in this regard.
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Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
(continued)
Our audit procedures were designed to respond to risks of material misstatement in the financial statements,
recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting
one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or
through collusion. There are inherent limitations in the audit procedures performed and the further removed non-
compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less
likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Parent Company’s members, as a body, in accordance with Chapter 3 of Part 16 of
the Companies Act 2006. Our audit work has been undertaken so that we might state to the Parent Company’s
members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the Parent Company and the
Parent Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Nigel Harker (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
London
United Kingdom
21 April 2023
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Annual Report 2022 | Anglo-Eastern Plantations Plc
100
Consolidated Income Statement
For the year ended 31 December 2022
2022
Result
before
BA
movement*
Note
BA
movement
Total
Result
before
BA
movement*
2021
BA
movement
$000
$000
$000
$000
$000
Total
$000
3
447,619
-
447,619
433,421
-
433,421
(304,424)
(5,792)
(310,216)
(300,354)
143,195
(5,792)
137,403
133,067
(9,683)
-
(617)
5, 12
5, 12
-
-
-
(9,683)
(8,587)
-
(617)
5,437
(585)
4,349
4,349
-
-
-
(296,005)
137,416
(8,587)
5,437
(585)
132,895
(5,792)
127,103
129,332
4,349
133,681
991
4,859
(12)
-
-
-
991
4,859
(12)
212
3,214
(24)
-
-
-
212
3,214
(24)
138,733
(5,792)
132,941
132,734
4,349
137,083
(32,737)
1,276
(31,461)
(24,784)
(958)
(25,742)
105,996
(4,516)
101,480
107,950
3,391
111,341
(5,684)
(139)
(5,823)
(28,471)
50
(28,421)
100,312
(4,655)
95,657
79,479
3,441
82,920
4
4
5
8
9
83,548
16,764
(3,904)
79,644
(751)
16,013
100,312
(4,655)
95,657
87,937
18,059
(3,772)
84,165
(744)
17,315
65,485
13,994
79,479
93,245
14,705
105,996
(4,516)
101,480
107,950
2,856
585
3,441
2,809
582
3,391
Continuing operations
Revenue
Cost of sales
Gross profit
Administration expenses
Reversal of impairment
Impairment losses
Operating profit
Exchange gains
Finance income
Finance expense
Profit before tax
Tax expense
Profit for the year from
continuing operations
(Loss) / gain on discontinued
operation, net of tax
Profit for the year attributable to:
- Owners of the parent
- Non-controlling interests
Profit for the year from continuing
operations attributable to:
- Owners of the parent
- Non-controlling interests
Earnings per share attributable
to the owners of the parent
during the year
Profit
- basic and diluted
Profit from continuing operations
- basic and diluted
10
10
Earnings per share before BA movement are shown in note 10.
200.94cts
212.34cts
68,341
14,579
82,920
96,054
15,287
111,341
172.42cts
242.34cts
Annual Report 2022 | Anglo-Eastern Plantations Plc
101
Consolidated Income Statement
For the year ended 31 December 2022
* The total column represents the IFRS figures and the result before BA movement is an Alternative Performance Measure (“APM”) which reflects
the Group's results before the movement in fair value of biological assets has been applied. We have opted to additionally disclose this APM as
management do not use the fair value of BA movement in assessing business performance.
The accompanying notes are an integral part of this consolidated income statement.
Annual Report 2022 | Anglo-Eastern Plantations Plc
102
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2022
Profit for the year
Other comprehensive expenses:
Items may be reclassified to profit or loss:
Loss on exchange translation of foreign operations
Net other comprehensive expenses may be reclassified to profit or loss
Items not to be reclassified to profit or loss:
Remeasurement of retirement benefits plan, net of tax
Net other comprehensive income not being reclassified to profit or loss
2022
$000
2021
$000
95,657
82,920
(54,975)
(54,975)
177
177
(5,429)
(5,429)
1,086
1,086
Total other comprehensive expenses for the year, net of tax
(54,798)
(4,343)
Total comprehensive income for the year
Total comprehensive income for the year attributable to:
- Owners of the parent
- Non-controlling interests
40,859
78,577
34,343
6,516
40,859
64,993
13,584
78,577
The accompanying notes are an integral part of this consolidated statement of comprehensive income.
Annual Report 2022 | Anglo-Eastern Plantations Plc
103
Consolidated Statement of Financial Position
As at 31 December 2022
Company Number: 1884630
Note
31.12.2022
$000
31.12.2021
$000
Non-current assets
Property, plant and equipment
Investments
Receivables
Deferred tax assets
Current assets
Inventories
Income tax receivables
Other tax receivable
Biological assets
Trade and other receivables
Short-term investments
Cash and cash equivalents
Assets in disposal groups classified as held for sale
Current liabilities
Trade and other payables
Income tax liabilities
Other tax liabilities
Dividend payables
Lease liabilities
Net current assets
Non-current liabilities
Deferred tax liabilities
Retirement benefits - net liabilities
Lease liabilities
Net assets
12
13
14
15
8
8
16
17
18
18
9
19
8
8
20
14
21
20
252,414
42
18,963
1,832
273,251
19,590
4,122
37,576
6,161
3,468
55,566
221,476
347,959
9,000
356,959
(33,966)
(10,230)
(1,221)
(32)
(73)
(45,522)
311,437
(805)
(10,874)
(31)
(11,710)
572,978
260,532
49
22,000
4,324
286,905
14,316
5,060
45,435
12,803
5,182
1,439
218,249
302,484
13,210
315,694
(32,533)
(13,139)
(1,615)
(25)
(240)
(47,552)
268,142
(1,330)
(11,499)
(110)
(12,939)
542,108
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104
Consolidated Statement of Financial Position
As at 31 December 2022
Company Number: 1884630
Issued capital and reserves attributable to owners of the parent
Share capital
Treasury shares
Share premium
Capital redemption reserve
Exchange reserves
Retained earnings
Non-controlling interests
Total equity
Note
22
22
31.12.2022
$000
31.12.2021
$000
15,504
(1,171)
23,935
1,087
15,504
(1,171)
23,935
1,087
(288,891)
(241,907)
712,919
463,383
109,595
572,978
642,582
440,030
102,078
542,108
The financial statements were approved and authorised for issue by the Board of Directors on 21 April 2023 and were signed on its behalf by:
Dato’ John Lim Ewe Chuan
Executive Director
The accompanying notes are an integral part of this consolidated statement of financial position.
Annual Report 2022 | Anglo-Eastern Plantations Plc
105
Consolidated Statement of Changes in Equity
For the year ended 31 December 2022
8
0
3
,
4
6
4
5
7
8
,
8
8
3
3
4
,
5
7
3
l
a
t
o
T
y
t
i
u
q
e
0
0
0
$
6
8
0
,
1
)
9
2
4
,
5
(
Balance at 31 December 2020
)
3
4
3
,
4
(
0
2
9
,
2
8
7
7
5
,
8
7
)
7
7
7
(
8
0
1
,
2
4
5
Note
7
7
1
)
5
7
9
,
4
5
(
)
8
9
7
,
4
5
(
Share
capital
$000
Treasury
shares
$000
7
5
6
,
5
9
9
5
8
,
0
4
)
3
3
8
,
5
(
)
6
5
1
,
4
(
15,504
(1,171)
8
7
9
,
2
7
5
Items of other comprehensive (expenses) / income
-Remeasurement of retirement benefit plan, net of tax
g
n
6
2
1
)
5
9
9
(
)
1
2
1
,
1
(
9
7
5
,
4
1
4
8
5
,
3
1
-Loss on exchange translation of foreign operations
-
n
o
N
0
0
0
$
s
t
s
e
r
e
t
n
i
i
l
l
o
r
t
n
o
c
Total other comprehensive (expenses) / income
Profit for the year
l
a
t
o
T
0
0
0
$
0
6
9
)
8
0
3
,
4
(
)
8
4
3
,
3
(
1
4
3
,
8
6
3
9
9
,
4
6
Total comprehensive (expenses) / income for the year
8
7
0
,
2
0
1
0
3
0
,
0
4
4
3
3
21
)
0
3
5
,
9
(
)
7
9
4
,
9
(
3
1
0
,
6
1
-
6
1
5
,
6
5
7
1
,
3
-
-
4
4
1
)
5
4
4
,
5
4
(
)
1
0
3
,
5
4
(
4
4
6
,
9
7
3
4
3
,
4
3
)
8
0
0
,
9
(
-
-
)
4
7
1
,
2
(
)
2
8
9
,
1
(
-
5
9
5
,
9
0
1
-
-
-
3
8
3
,
3
6
4
-
Dividends paid
-
-
0
0
0
$
Balance at 31 December 2021
d
e
n
i
a
Items of other comprehensive (expenses) / income
t
e
R
s
g
n
n
r
a
e
2
8
5
,
2
4
6
7
7
6
,
3
7
5
1
4
3
,
8
6
1
0
3
,
9
6
0
6
9
0
6
9
i
-
-
4
4
1
4
4
1
4
4
6
,
9
7
15,504
8
8
7
,
9
7
)
9
6
4
,
7
(
(1,171)
)
2
8
9
,
1
(
9
1
9
,
2
1
7
Consolidated Statement of Changes in Equity
-Remeasurement of retirement benefit plan, net of tax
For the year ended 31 December 2022
-Loss on exchange translation of foreign operations
s
e
v
r
e
s
e
r
e
g
n
a
h
c
x
Total other comprehensive (expenses) / income
E
)
9
9
5
,
7
3
2
(
)
8
0
3
,
4
(
)
8
0
3
,
4
(
)
8
0
3
,
4
(
)
7
0
9
,
1
4
2
(
)
5
4
4
,
5
4
(
)
5
4
4
,
5
4
(
)
5
4
4
,
5
4
(
)
9
3
5
,
1
(
0
0
0
$
21
)
1
9
8
,
8
8
2
(
-
-
-
-
-
-
-
-
-
-
)
1
8
3
(
)
6
9
3
(
)
6
9
3
(
Profit for the year
l
a
t
i
p
a
C
-
-
-
-
-
-
0
0
0
$
7
8
0
,
1
7
8
0
,
1
e
v
r
e
s
e
r
n
o
i
Total comprehensive (expenses) / income for the year
t
p
m
e
Acquisition of non-controlling interests
d
e
r
Balance at 31 December 2020
Dividends paid
e
Items of other comprehensive (expenses) / income
r
a
Balance at 31 December 2022
h
S
-Remeasurement of retirement benefit plan, net of tax
5
3
9
,
3
2
5
3
9
,
3
2
0
0
0
$
-
-
-
-
-
-
i
m
u
m
e
r
p
-Loss on exchange translation of foreign operations
-
-
-
-
-
-
Total other comprehensive (expenses) / income
Total comprehensive (expenses) / income for the year
-
-
-
-
-
-
)
1
7
1
,
1
(
0
0
0
$
s
e
r
a
h
s
y
r
u
s
a
e
r
T
Profit for the year
0
0
0
$
e
r
a
h
S
Dividends paid
l
a
t
i
p
a
c
4
0
5
,
5
1
)
1
7
1
,
1
(
4
0
5
,
5
1
-
-
Note
-
30
-
-
-
-
-
-
Share
-
capital
-
$000
-
-
15,504
-
-
Treasury
-
shares
-
$000
7
8
0
,
1
-
-
(1,171)
-
5
3
9
,
3
2
(1,171)
-
-
-
-
-
21
15,504
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
)
1
7
1
,
1
(
-
-
-
4
0
5
,
5
1
-
Share
premium
$000
Capital
redemption
reserve
$000
Exchange
reserves
$000
Retained
earnings
$000
Non-
controlling
interests
$000
Total
$000
23,935
1,087
(237,599)
573,677
375,433
88,875
464,308
-
-
-
-
-
-
-
-
-
-
-
-
-
(4,308)
(4,308)
-
(4,308)
960
-
960
68,341
69,301
960
(4,308)
(3,348)
68,341
64,993
126
(1,121)
(995)
14,579
13,584
-
(396)
(396)
(381)
23,935
1,087
(241,907)
642,582
440,030
102,078
542,108
-
-
-
-
-
Share
-
premium
-
$000
-
Capital
redemption
-
reserve
-
$000
-
23,935
-
23,935
-
-
-
-
-
-
-
1,087
-
1,087
-
-
-
-
-
-
-
144
144
33
177
(45,445)
6
0
1
(45,445)
Exchange
-
reserves
(45,445)
$000
(1,539)
(237,599)
-
(288,891)
-
(4,308)
(4,308)
-
(4,308)
-
(45,445)
(9,530)
(54,975)
144
Retained
79,644
earnings
79,788
$000
(45,301)
79,644
Total
34,343
$000
(9,497)
Non-
controlling
16,013
interests
6,516
$000
(7,469)
573,677
(1,982)
712,919
960
-
960
68,341
69,301
(9,008)
375,433
(1,982)
463,383
960
(4,308)
(3,348)
68,341
64,993
3,175
88,875
(2,174)
109,595
126
(1,121)
(995)
14,579
13,584
-
(396)
(396)
(381)
Total
equity
$000
1,086
(5,429)
(4,343)
82,920
78,577
(777)
(54,798)
Total
95,657
equity
40,859
$000
(5,833)
464,308
(4,156)
572,978
1,086
(5,429)
(4,343)
82,920
78,577
(777)
Balance at 31 December 2021
15,504
(1,171)
23,935
1,087
(241,907)
642,582
440,030
102,078
542,108
Items of other comprehensive (expenses) / income
Annual Report 2022 | Anglo-Eastern Plantations Plc
1
2
e
t
o
N
-Remeasurement of retirement benefit plan, net of tax
-Loss on exchange translation of foreign operations
Total other comprehensive (expenses) / income
Profit for the year
e
m
o
c
n
i
Total comprehensive (expenses) / income for the year
/
i
l
Acquisition of non-controlling interests
x
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Dividends paid
Balance at 31 December 2022
1
2
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f
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15,504
e
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n
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l
a
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r
a
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y
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t
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f
t
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f
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r
P
-
-
-
-
-
-
-
2
2
0
2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
23,935
1,087
(1,171)
r
e
b
m
e
c
e
D
1
3
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d
a
p
s
d
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e
d
v
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i
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t
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c
n
a
a
B
l
106
-
144
144
33
177
(45,445)
(45,445)
-
(45,445)
(9,530)
(54,975)
144
(45,301)
(9,497)
(54,798)
-
79,644
(45,445)
79,788
(1,539)
-
(7,469)
(1,982)
79,644
34,343
(9,008)
(1,982)
16,013
6,516
3,175
(2,174)
95,657
40,859
(5,833)
(4,156)
(288,891)
712,919
463,383
109,595
572,978
l
c
P
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A
Annual Report 2022 | Anglo-Eastern Plantations Plc
106
y
t
i
u
q
E
n
i
s
e
g
n
a
h
C
f
o
t
n
e
m
e
t
a
t
S
d
e
t
a
d
i
l
o
s
n
o
C
2
2
0
2
r
e
b
m
e
c
e
D
1
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
F
Consolidated Statement of Cash Flows
For the year ended 31 December 2022
Cash flows from operating activities
Profit before tax from continuing operations
Adjustments for:
BA movement
(Gain) / Loss on disposal of property, plant and equipment
Depreciation
Retirement benefit provisions
Net finance income
Unrealised gain in foreign exchange
Property, plant and equipment written off
Impairment losses / (reversal of impairment)
Provision / (Reversal) for expected credit loss
Operating cash flows before changes in working capital
Increase in inventories
Increase in non-current, trade and other receivables
Increase in trade and other payables
Cash inflows from operations
Retirement benefits paid
Overseas tax paid
Operating cash flows from continuing operations
Operating cash flows used in discontinued operations
2022
$000
2021
$000
132,941
137,083
5,792
(91)
16,724
1,157
(4,847)
(991)
134
617
1,665
153,101
(6,291)
(896)
4,035
149,949
(612)
(27,495)
121,842
(1,331)
(4,349)
24
16,994
103
(3,190)
(212)
72
(4,852)
(177)
141,496
(2,649)
(517)
6,683
145,013
(487)
(12,359)
132,167
(821)
Net cash generated from operating activities
120,511
131,346
Investing activities
Property, plant and equipment
- purchases
- sales
Interest received
Increase in receivables from cooperatives under plasma scheme
Investment in share equity
Placement of fixed deposits with original maturity of more than three months
Withdrawal of fixed deposits with original maturity of more than three months
Cash used in investing activities from continuing operations
Cash used in investing activities from discontinued operations
Net cash used in investing activities
(34,026)
(26,374)
111
4,859
(2,570)
-
(55,566)
1,439
(85,753)
(1,865)
(87,618)
413
3,214
(1,985)
(49)
(1,439)
1,957
(24,263)
(1,594)
(25,857)
Annual Report 2022 | Anglo-Eastern Plantations Plc
107
Consolidated Statement of Cash Flows
For the year ended 31 December 2022
Financing activities
Dividends paid to the holders of the parent
Dividends paid to non-controlling interests
Repayment of lease liabilities - principal
Repayment of lease liabilities - interest
Acquisition of non-controlling interests
Cash used in financing activities from continuing operations
Cash used in financing activities from discontinued operations
Net cash used in financing activities
Note
2022
$000
(1,975)
(2,174)
(220)
(12)
(5,142)
(9,523)
-
(9,523)
2021
$000
(395)
(381)
(228)
(24)
-
(1,028)
-
(1,028)
Net increase in cash and cash equivalents
23,370
104,461
Cash and cash equivalents
At beginning of year
Exchange losses
At end of year
Comprising:
Cash at end of year
218,249
(20,143)
221,476
115,211
(1,423)
218,249
18
221,476
218,249
The accompanying notes are an integral part of this consolidated statement of cash flows.
.
Annual Report 2022 | Anglo-Eastern Plantations Plc
108
Notes to the Consolidated Financial Statements
1 Basis of preparation
AEP is a company incorporated in the UK under the Companies Act 2006 and is listed on the London Stock Exchange. The registered office
of AEP is located at Quadrant House, 6th Floor, 4 Thomas More Square, London E1W 1YW, UK. The principal activity of the Group is plantation
agriculture, mainly in the cultivation of oil palm in Indonesia and Malaysia, of which Indonesia is the principal place of business.
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have
been consistently applied to all years presented.
Basis of preparation
The consolidated financial statements have been prepared in accordance with UK adopted International Accounting Standards and with the
requirements of the Companies Act 2006 as applicable to companies reporting under those standards.
The Directors have carried out stress tests, factoring in the identified uncertainties and risks such as commodity prices and demands post
pandemic, together with the current economic issues of high inflation, rising interest rates and cost of living crisis, to ensure that the Group has
adequate resources in a worst-case scenario to remain as a going concern for at least twelve months from the date of this report.
The Directors have a reasonable expectation, having made the appropriate enquiries, that the Group has sufficient cash resources to cover
the Group’s operating expenses for a period of at least twelve months from the date of approval of these financial statements. For these
reasons, the Directors adopted a going concern basis in the preparation of the financial statements. The Directors have made this assessment
after consideration of the Group’s budgeted cash flows and related assumptions including appropriate stress testing of identified uncertainties,
specifically on the potential shut down of the entire operations from three to twelve months if all the plantations are infected with an infectious
disease as well as the impact on the demand for palm oil with decreases of 50% to 100%. Stress testing of other identified uncertainties and
risks such as commodity prices and currency exchange rates were also undertaken.
Changes in accounting standards
(a) New standards, interpretations and amendments effective for the first time for the accounting periods beginning on or after 1 January
2022 in these financial statements in the current year
•
•
•
•
Annual improvements to IFRS Standards 2018-2020.
Conceptual Framework for Financial Reporting (Amendments to IFRS 3).
IAS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendment - Onerous Contracts - Cost of Fulfilling a Contract).
IAS 16 Property, Plant and Equipment (Amendment - Proceeds before Intended Use).
(b) New standards, interpretations and amendments not yet effective.
The following new standards, interpretations and amendments are effective for future periods (as indicated) and have not been applied
in these financial statements:
•
•
•
•
•
•
•
IFRS 17 Insurance Contracts (1 January 2023, not yet adopted).
IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2, amendment related to Disclosure of Accounting
Policies (1 January 2023, not yet adopted).
IAS 8 Accounting policies, Changes in Accounting Estimates and Errors, amendment related to Definition of Accounting Estimates
(1 January 2023, not yet adopted).
IAS 12 Income Taxes, amendment related to Deferred Tax related to Assets and Liabilities arising from a Single Transaction (1
January 2023, not yet adopted).
IFRS 16 Leases, amendment related to Liability in a Sale and Leaseback (1 January 2024, not yet adopted)
IAS 1 Presentation of Financial Statements, amendment related to Classification of Liabilities as Current or Non-Current (1
January 2024, not yet adopted).
IAS 1 Presentation of Financial Statements, amendment related to Non-current Liabilities with Covenants (1 January 2024, not
yet adopted).
None of the above new standards, interpretations and amendments are expected to have a material effect on the Group's future financial
statements.
Annual Report 2022 | Anglo-Eastern Plantations Plc
109
Notes to the Consolidated Financial Statements
2 Accounting policies
(a) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its
subsidiaries) made up to 31 December each year. The Company controls a subsidiary if all three of the following elements are present;
power over the subsidiary, exposure to variable returns from the subsidiary, and the ability of the investor to use its power to affect those
variable returns. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control
commences until the date control ceases. In respect of cooperatives under the Plasma scheme, the Group has not consolidated these
results on the basis that all key decisions are made by the cooperative and the Company has no voting rights therefore does not have
control over those entities.
(b) Business combinations
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the consolidated
statement of financial position, the acquiree’s identifiable assets, liabilities and contingent liabilities are initially recognised at their fair
values at the acquisition date. Acquisitions of entities that comprise principally land with no active plantation business do not represent
business combinations, in such cases, the amount paid for each acquisition is allocated between the identifiable assets/liabilities at the
acquisition date.
(c)
Foreign currency
The individual financial statements of each subsidiary are presented in the currency of the country in which it operates (its functional
currency), being the currency in which the majority of their transactions are denominated, with the exception of the Company and its UK
subsidiaries which are presented in US Dollar. The presentation currency for the consolidated financial statements is also US Dollar,
chosen because, as internationally traded commodities, the price of the bulk of the Group’s products are ultimately linked to the US
Dollar.
On consolidation, the results of overseas operations are translated into US Dollar at average exchange rates for the year unless
exchange rates fluctuate significantly in which case the actual rate is used. All assets and liabilities of overseas operations are translated
at the rate ruling at the balance sheet date. Exchange differences arising on re-translating the opening net assets at opening rate and
the results of overseas operations at actual rate are recognised directly in equity (the “exchange reserves”). Exchange differences
recognised in the income statement of Group entities’ separate financial statements on the translation of long-term monetary items
forming part of the Group’s net investment in the overseas operation concerned are reclassified to the exchange reserves if the item is
denominated in the presentational currency of the Group or of the overseas operation concerned.
On disposal of a foreign operation, the cumulative exchange differences recognised in the exchange reserves relating to that operation
up to the date of disposal are transferred to the income statement as part of the profit or loss on disposal.
All other exchange profits or losses are credited or charged to the income statement.
(d) Revenue recognition
The Group derives its revenue from the sale of CPO, palm kernel, FFB, shell nut, biomass products, biogas products and rubber slab.
Revenue for CPO, palm kernel, FFB, shell nut, biomass and biogas products are recorded net of sales and related taxes and levies,
including export taxes and recognised when the customer has taken delivery of the goods. The collection/delivery of the goods will not
take place until the goods are paid for. Sales of rubber slab are recognised on signing of the sales contract, this being the point at which
control is transferred to the buyer.
The transacted price for each product is based on the market price or predetermined monthly contract value. There is no right of return
nor warranty provided to the customers on the sale of products and services rendered.
Advance receipts represent the Group's obligation to transfer goods to a customer for which the Group has received consideration but
the goods have yet to be delivered to/collected by the customer.
(e)
Tax
UK and foreign corporation tax are provided at amounts expected to be paid or recovered using the tax rates and laws that have been
enacted or substantively enacted by the balance sheet date.
The directors consider that the carrying amount of tax receivables approximates its fair value.
(f)
Dividends
Equity dividends are recognised when they become legally payable. The Company pays only one dividend each year as a final dividend
which becomes legally payable when approved by the shareholders at the next annual general meeting.
(g) Property, plant and equipment
All items of property, plant and equipment are initially measured at cost. Cost includes expenditure that is directly attributable to the
acquisition of the items. After initial recognition, all items of property, plant and equipment except some land and construction in progress,
are stated at cost less accumulated depreciation and any accumulated impairment losses.
Annual Report 2022 | Anglo-Eastern Plantations Plc
110
Notes to the Consolidated Financial Statements
2 Accounting policies - continued
(g) Property, plant and equipment - continued
Plantations comprise of the cost of planting and development of oil palm and other plantation crops. Costs of new planting and
development of plantation crops are capitalised from the stage of land clearing up to the stage of maturity. The costs of immature
plantations consist mainly of the accumulated cost of land clearing, planting, fertilising and maintaining the plantation and other indirect
overhead costs up to the time the trees are harvestable and to the extent appropriate. Oil palm plantations are considered mature within
three to four years after planting and generating average annual CPO of four to six metric tons per hectare. Immature plantations are
not depreciated.
The Indonesian authorities have granted certain land exploitation rights and operating permits for the estates. The land rights are usually
renewed without significant cost subject to compliance with the laws and regulations of Indonesia therefore, the Group has classified the
land rights as leasehold land. The leasehold land is recognised at cost initially and is not depreciated except the leasehold land in
Malaysia which is depreciated over the term of the lease as its renewal cannot be guaranteed. Costs include the initial cost of obtaining
the location permits and subsequent payments to compensate existing land owners plus any legal costs incurred to acquire the
necessary land exploitation rights.
Construction in progress is stated at cost. The accumulated costs will be reclassified to the appropriate class of assets when construction
is completed and the asset is ready for its intended use. Construction in progress is also not depreciated until such time when the asset
is available for use.
Plantations, buildings and oil mills are depreciated using the straight-line method. The yearly rates of depreciation are as follows:
Leasehold land in Malaysia - over the term of the lease
Plantations - 5% per annum
Buildings - 5% to 10% per annum
Oil Mill - 5% per annum
Estate plant, equipment & vehicle - 12.5% to 50% per annum
Office plant, equipment & vehicle - 25% to 50% per annum
(h) Biological assets
Biological assets comprise an estimation of the fair value less costs to sell of unharvested FFB at balance sheet date. Changes in the
fair value of biological assets are charged or credited to the income statement within the cost of sales.
(i)
Leases
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right-of-use asset
and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined
as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items
of office furniture and telephones). For these leases, the Group recognises the lease payments as an operating expense on a straight-
line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic
benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the lessee uses its incremental borrowing
rate.
Lease payments included in the measurement of the lease liability comprise:
• Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable.
The lease liability is presented as a separate line in the consolidated statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective
interest method) and by reducing the carrying amount to reflect the lease payments made.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the
commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less
accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers
ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the
related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date
of the lease.
The right-of-use assets are presented together in property, plant and equipment in the consolidated statement of financial position. The
Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described
in the “Impairment” policy.
Annual Report 2022 | Anglo-Eastern Plantations Plc
111
Notes to the Consolidated Financial Statements
2 Accounting policies - continued
(i)
(j)
(k)
(l)
Leases - continued
Land rights are recognised at historical cost without depreciation at the balance sheet date except for leasehold land in Malaysia where
it is recognised at historical cost and depreciated over the term of the lease.
Impairment
An assessment of indicators of impairment over the Group’s assets is undertaken annually on 31 December. Where the carrying value
of an asset exceeds its recoverable amount (i.e. the higher of value in use or fair value, less costs to sell), the asset is written down
accordingly. Impairment charges are included in the income statement, except to the extent where they reverse gains previously
recognised in other comprehensive income. Reversal on impairment loss would be recognised if, and only if, there has been a change
in the estimates used to determine the asset’s recoverable amount since the last impairment test was carried out. Reversal on
impairment losses will be immediately recognised in the income statement.
Inventories
Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value. In the case of processed
produce for sale which comprises palm oil and kernel, cost represents the monthly weighted-average cost of production and appropriate
production overheads. Estate and mill consumables are valued on a weighted average cost basis. Fresh fruit bunches are measured
on initial recognition at fair value less costs to sell at the point of harvest, as this is considered to reflect its cost at that date.
Financial assets
The Group's financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the
consolidated statement of financial position. All the Group's receivables and loans are non-derivative financial assets with cash flows
that are solely payments of principal and interest. They are recognised at fair value at inception and subsequently at amortised cost as
this is what the Group considers to be most representative of the business model for these assets.
Cash and cash equivalents consist of cash in hand and short-term deposits at banks with an original maturity not exceeding three
months. Bank overdrafts are shown within loans and borrowings under current liabilities on the statement of financial position.
The Group considers a trade receivable or other receivable as credit impaired when one or more events that have a detrimental impact
on the estimated cash flow have occurred. Trade and other receivables are written off when there is no expectation of recovery based
on the assessment performed. If the receivables are subsequently recovered, these are recognised in income statement.
The Group use three categories for those receivables which reflect their credit risk and how the loss provision is determined for those
categories. These include trade receivables using the simplified approach and debt instruments at amortised costs other than trade
receivables and financial guarantee contracts using the three-stage approach.
(m) Financial liabilities
All the Group's financial liabilities are non-derivative financial liabilities.
Bank borrowings and long-term development loans are initially recognised at fair value and subsequently at amortised cost, which is the
total of proceeds received net of issue costs. Finance charges are accounted for on an accruals basis and charged in the income
statement unless capitalised according to the policy as set out in the property, plant and equipment policy.
Trade and other payables are shown at fair value at recognition and subsequently at amortised cost.
(n) Deferred tax
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the statement of financial position
differs from its tax base except for differences in the initial recognition of an asset or liability in a transaction which is not a business
combination and at the time of the transaction affects neither accounting nor taxable profit.
The Group recognises deferred tax liabilities arising from taxable temporary differences on investments in subsidiaries, except where
the Group is able to control the reversal of the temporary differences and it is probable that the temporary difference will not reverse in
the foreseeable future.
Recognition of deferred tax assets is restricted to those instances where it is possible that taxable profit will be available against which
the difference can be utilised.
Deferred tax is recognised on temporary differences arising from property revaluation surpluses or deficits.
Deferred tax is determined using the tax rates that are enacted or substantively enacted at the balance sheet date. Deferred tax is
charged or credited in the income statement, except when it relates to items charged to other comprehensive income, such as
revaluations, in which case the deferred tax is also dealt with in other comprehensive income.
Annual Report 2022 | Anglo-Eastern Plantations Plc
112
Notes to the Consolidated Financial Statements
2 Accounting policies - continued
(o) Retirement benefits
Defined contribution schemes
Contributions to defined contribution pension schemes are charged to the consolidated income statement in the year to which they
relate.
Defined benefit schemes
The Group operates a number of defined benefit schemes in respect of its Indonesian operations. The schemes’ surpluses and deficits
are measured at:
• The fair value of plan assets at the reporting date; less
• Plan liabilities calculated using the projected unit credit method discounted to its present value using yields available on Indonesian
Government bonds that have maturity dates approximating to the terms of the liabilities; plus
• Past service costs; less
• The effect of minimum funding requirements agreed with scheme trustees.
Remeasurements of the net defined benefit obligation are recognised in other comprehensive income. The remeasurements include:
• Actuarial gains and losses;
• Return on plan assets (interest exclusive); and
• Any asset ceiling effects (interest inclusive).
Service costs are recognised in the income statement and include current and past service costs as well as gains and losses on
curtailments.
Net interest expense / (income) is recognised in the income statement, and is calculated by applying the discount rate used to measure
the defined benefit obligation / (asset) at the beginning of the annual period to the balance of the net defined benefit obligation / (asset),
considering the effects of contributions and benefit payments during the period.
Gains or losses arising from changes to scheme benefits or scheme curtailment are recognised immediately in the income statement.
Settlements of defined benefit schemes are recognised in the period in which the settlement occurs.
Treasury shares
Consideration paid or received for the purchase or sale of the Company’s own shares for holding in treasury is recognised directly in
equity, where the cost is presented as the treasury shares. Any excess of the consideration received on the sale of treasury shares over
the weighted average cost of shares sold is taken to the share premium account.
Any shares held in treasury are treated as cancelled for the purpose of calculating earnings per share.
Financial guarantee contracts
Where the Company and its subsidiaries enter into financial guarantee contracts and guarantee the indebtedness of other companies
within the Group and/or third party entities, these are accounted for under IFRS 9. The details of financial guarantee contracts are
disclosed in note 26.
(p)
(q)
(r)
Non-current assets held for sale and disposal groups
Non-current assets and disposal groups are classified as held for sale when:
•
they are available for immediate sale;
• management is committed to a plan to sell;
•
•
•
•
it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn;
an active programme to locate a buyer has been initiated;
the asset or disposal group is being marketed at a reasonable price in relation to its fair value; and
a sale is expected to complete within 12 months from the date of classification.
Non-current assets and disposal groups classified as held for sale are measured at the lower of:
•
•
their carrying amount immediately prior to being classified as held for sale in accordance with the group's accounting policy; and
fair value less costs of disposal.
Following their classification as held for sale, non-current assets (including those in a disposal group) are not depreciated.
A discontinued operation is a component of the Group's business that represents a separate major line of business or geographical area
of operations or is a subsidiary acquired exclusively with a view to resale, that has been disposed of, has been abandoned or that meets
the criteria to be classified as held for sale.
Annual Report 2022 | Anglo-Eastern Plantations Plc
113
Notes to the Consolidated Financial Statements
2 Accounting policies - continued
(r)
Non-current assets held for sale and disposal groups - continued
Discontinued operations are presented in the consolidated statement of comprehensive income as a single line which comprises the
profit or loss after tax of the discontinued operation along with the gain or loss after tax recognised on the re-measurement to fair value
less costs to sell or on disposal of the assets or disposal groups constituting discontinued operations.
The Group has made an accounting policy choice not to allocate profit achieved on the related external transaction to the discontinued
operations.
(s) Critical accounting estimates and judgements
The Group makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based
on historical experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
discussed below.
Judgements
•
•
•
Assessment of de-facto control of cooperatives under Plasma scheme (see note 2(a) and note 28).
Classification of land as leasehold with no depreciation charged (see note 12).
Classification of assets as held for sale and discontinued operations (see note 9).
Estimates and assumptions
•
•
•
•
•
•
•
•
Impairment of plantation assets - estimate of future cash flows and determination of the discount rate and other assumptions (see
note 12).
Expected credit losses (“ECL”) on amounts due from cooperatives under Plasma scheme - determination of possible outcomes
and their weighted probability (see note 13).
Carrying value of income tax receivables - determination of historic recovery rates (see note 8).
Income taxes and deferred tax - provisions for income taxes in various jurisdictions (see note 8 and note 14).
Valuation of assets classified as held for sale (see note 9).
Recognition of deferred tax on losses - estimate of future profitability of respective entities (see note 14).
Retirement benefits - actuarial assumptions (see note 21).
Fair value measurement - a number of assets and liabilities included in the Group’s financial statements require measurement at,
and/or disclosure of, fair value. The fair value measurement of the Group’s financial and non-financial assets and liabilities utilises
market observable inputs and data as far as possible. Inputs used in determining fair value measurements are categorised into
different levels based on how observable the inputs used in the valuation technique utilised are (the ‘fair value hierarchy’):
-
-
Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly; and
Level 3 - unobservable inputs for the asset or liability.
-
The classification of an item into the above levels is based on the lowest level of the inputs used that has a significant effect on
the fair value measurement of the item. Transfers of items between levels are recognised in the period they occur.
The Group measures the following assets at fair value:
-
Biological assets (note 16).
The Group measures the following assets at amortised cost, however disclosure of fair value is given in accordance with IFRS7
and IFRS 13:
-
-
Non-current receivables due from non-controlling interests (note 13).
Non-current receivables due from cooperatives under Plasma scheme (note 13).
For more detailed information in relation to the fair value measurement of the items above, please refer to the applicable notes.
Annual Report 2022 | Anglo-Eastern Plantations Plc
114
Notes to the Consolidated Financial Statements
3 Revenue
Disaggregation of Revenue
The Group has disaggregated revenue into various categories in the following table which is intended to:
•
•
depict how the nature, amount and uncertainty of revenue and cash flows are affected by timing of revenue recognition; and
enable users to understand the relationship with revenue segment information provided in note 6.
There is no right of return and warranty provided to the customers on the sale of products and services rendered. All revenue in the table below
is recognised at a point in time.
CPO, palm
kernel and
FFB
$000
Rubber
$000
Shell nut
$000
Biomass
products
$000
Biogas
products
$000
Others
$000
Total
$000
Year to 31 December 2022
Contract counterparties
Government
Non-government
- Wholesalers
Timing of transfer of goods
Delivery to customer premises
Delivery to port of departure
Customer collect from our mills /
estates
Upon generation / others
Year to 31 December 2021
Contract counterparties
Government
Non-government
- Wholesalers
Timing of transfer of goods
Delivery to customer premises
Delivery to port of departure
Customer collect from our mills / estates
Upon generation / others
4 Finance income and expense
-
437,247
437,247
5,359
-
431,888
-
437,247
-
426,436
426,436
4,995
-
421,441
-
426,436
-
630
630
630
-
-
-
630
-
695
695
695
-
-
-
695
-
5,438
5,438
-
-
5,438
-
5,438
-
4,036
4,036
-
-
4,036
-
4,036
-
24
24
-
24
-
-
24
-
336
336
-
336
-
-
336
Finance income
Interest receivable on:
Credit bank balances and time deposits
Finance expense
Interest payable on:
Interest expense on lease liabilities (note 20)
Net finance income recognised in income statement
1,160
-
1,160
-
-
-
1,160
1,160
999
-
999
-
-
-
999
999
-
1,160
3,120
3,120
446,459
447,619
-
-
5,989
24
-
3,120
3,120
437,326
4,280
447,619
-
999
919
919
-
-
-
919
919
432,422
433,421
5,690
336
425,477
1,918
433,421
2022
$000
2021
$000
4,859
3,214
(12)
4,847
(24)
3,190
Annual Report 2022 | Anglo-Eastern Plantations Plc
115
Notes to the Consolidated Financial Statements
5 Expenses by nature
Expenses by nature:
Purchase of FFB
Depreciation (note 12):
- continuing operations
- discontinued operations
Reversal of impairment (note 12):
- continuing operations
- discontinued operations
Impairment losses (note 12):
- continuing operations
- discontinued operations
Impairment loss on adjustment to fair value
Provision / (Reversal) for expected credit loss (note 17):
- continuing operations
- discontinued operations
Exchange gain
Legal and professional fees
Staff costs (note 7)
Remuneration received by the Group’s auditor or associates of the Group’s auditor:
- Audit of parent company
- Audit of consolidated financial statements
- Audit related assurance service
- Audit of UK subsidiaries
Total audit services
Audit of overseas subsidiaries
- Malaysia
- Indonesia
Total audit services
Total auditor’s remuneration
6 Segment information
2022
$000
2021
$000
182,715
191,915
16,724
-
16,724
-
-
-
617
-
617
5,034
1,665
(91)
1,574
(994)
1,289
62,390
5
205
9
13
232
22
147
169
401
16,994
1,978
18,972
(5,437)
-
(5,437)
585
716
1,301
21,772
(177)
1,231
1,054
(213)
945
55,996
5
209
7
13
234
22
116
138
372
Description of the types of products and services from which each reportable segment derives its revenues
In the opinion of the Directors, the operations of the Group comprise one class of business which is the cultivation of plantation in Indonesia
and Malaysia. From the cultivation of plantation, the Group produced the crude palm oil and associated products such as palm kernel, shell
nut, biomass products, biogas products and rubber.
Factors that management used to identify reportable segments in the Group
The reportable segments in the Group are strategic business units based on the geographical spread. Operating segments are consistent with
the internal reporting provided to the Board of Directors. The Board of Directors is responsible for allocating resources and assessing the
performance of the operating segments. The Board decision is implemented by the Management Committee, that is made up of a Senior
General Manager and Group Accountant in Malaysia, the President Director, the Chief Operating Officer, Finance Director and the Engineering
Director in Indonesia.
Measurement of operating segment profit or loss, assets and liabilities
The Group evaluates segmental performance on the basis of profit or loss before tax calculated in accordance with IFRS but excluding BA
movement.
Inter-segment transactions are made based on terms mutually agreed by the parties to maximise the utilisation of Group’s resources at a rate
acceptable to local tax authorities. This policy was applied consistently throughout the current and prior period.
The Group’s assets are allocated to segments based on geographical location.
Annual Report 2022 | Anglo-Eastern Plantations Plc
116
Notes to the Consolidated Financial Statements
6 Segment information - continued
-
-
-
-
4
1
1
0
0
0
$
2
9
1
,
9
a
*
r
h
e
t
t
u
a
o
m
S
u
2022
S
Total sales revenue (all external)
- CPO, palm kernel and FFB
m
o
- Rubber
r
f
- Shell nut
- Biomass products
- Biogas products
K
- Others
U
Total revenue
s
n
o
i
t
a
r
e
p
o
g
n
u
n
i
t
n
o
c
7
4
2
,
7
3
4
8
3
4
,
5
0
6
1
,
1
0
2
1
,
3
0
0
0
$
0
0
0
$
a
t
o
T
0
3
6
4
2
-
-
-
-
-
-
l
i
6
0
3
,
9
9
1
6
,
7
4
4
-
)
8
7
1
(
)
5
0
1
,
1
(
)
2
9
7
,
5
(
3
3
7
,
8
3
1
-
)
3
4
2
,
3
(
)
3
8
2
,
1
(
1
4
9
,
2
3
1
)
3
4
2
,
3
(
4
-
-
)
2
1
(
9
5
8
,
4
)
4
2
7
,
6
1
(
-
-
-
North
Sumatera
-
1
9
)
7
6
5
(
5
0
3
,
7
$000
)
7
1
6
(
-
9
1
4
,
6
5
7
6
5
)
5
6
6
,
1
(
146,044
630
2,056
24
354
141
149,249
)
1
5
4
,
1
(
3
5
-
4
9
4
)
1
6
4
,
1
3
(
)
0
4
1
,
1
(
3
9
7
4
0
7
,
5
5
5
8
,
9
Bengkulu
$000
0
7
2
,
4
3
5
5
3
,
0
2
6
4
1
4
,
2
5
2
124,480
-
1,197
-
475
-
126,152
2
0
6
,
2
-
-
-
-
-
-
i
0
0
0
$
a
s
y
Profit / (loss) before tax
a
a
BA movement
M
Profit / (loss) for the year before tax per consolidated income
Notes to the Consolidated Financial Statements
51,210
(1,845)
35,809
(1,571)
0
4
5
,
1
1
3
0
3
,
2
3
8
2
,
2
1
0
6
7
9
8
5
7
0
1
8
3
0
2
l
-
-
)
0
7
(
)
1
2
7
(
)
1
9
7
(
)
7
(
)
8
7
3
(
)
2
3
4
(
)
8
9
(
statement
0
0
0
$
l
a
t
o
T
i
a
s
e
n
o
d
n
4
6
9
,
4
3
4
4
2
0
3
6
8
3
4
,
5
0
6
1
,
1
0
0
1
,
3
6
1
3
,
5
4
4
)
2
2
7
,
5
(
7
9
6
,
2
4
1
5
7
9
,
6
3
1
)
5
(
1
2
8
,
4
)
6
4
3
,
6
1
(
)
5
8
1
(
)
5
7
(
49,365
)
4
1
2
(
9
1
4
,
6
5
)
3
2
2
,
0
3
(
34,238
3
1
2
,
6
0
6
3
1
8
,
4
4
2
3
6
1
,
4
3
Total
Indonesia
Bangka
$000
Kalimantan
$000
Malaysia
$000
UK
$000
$000
Total from
continuing
operations
$000
South*
Sumatera
$000
2,283
437,247
9,192
2,554
-
-
-
-
33
2,587
84,198
-
118
-
331
264
84,911
434,964
630
5,438
24
1,160
3,100
445,316
-
-
-
-
20
2,303
630
5,438
24
1,160
3,120
447,619
433
(106)
29,079
(1,354)
142,697
(5,722)
(721)
(70)
(3,243)
138,733
(5,792)
(1,105)
(178)
327
27,725
136,975
(791)
(3,243)
132,941
(1,283)
114
9,306
-
-
-
-
4
-
-
-
South*
91
Sumatera
(567)
7,305
494
$000
9,855
5,704
9,192
793
-
-
-
-
114
9,306
38
(7)
(378)
(432)
589
-
-
(1,451)
53
-
UK
2,602
(98)
$000
(1,140)
$000
11,540
7601
2,283
107
-
-
-
-
20
2,303
4,859
(12)
(16,724)
(617)
Total from
(1,665)
continuing
567
operations
56,419
(31,461)
$000
620,355
252,414
437,247
34,270
630
5,438
24
1,160
3,120
447,619
38
(7)
(378)
(432)
589
-
-
7601
107
(1,451)
53
-
(98)
(1,140)
11,540
2,602
4,859
(12)
(16,724)
(617)
(1,665)
567
56,419
(31,461)
620,355
252,414
34,270
4
-
-
-
91
(567)
7,305
494
9,855
5,704
793
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6 Segment information - continued
I
-
-
-
-
i
l
2
1
1
3
a
K
1
3
3
8
1
1
4
6
2
0
0
0
$
)
5
8
1
(
6
7
3
,
9
8
2
6
,
9
8
9
1
,
4
8
9
7
0
,
9
2
1
1
9
,
4
8
5
2
7
,
7
2
)
4
5
3
,
1
(
)
4
1
4
,
5
(
)
0
6
9
,
1
(
)
2
2
9
,
5
(
n
a
t
n
a
m
4
1
9
,
9
3
1
.
s
n
o
i
t
a
r
e
p
o
1,321
-
(3,942)
-
(57)
(1,927)
2,711
Bengkulu
(7,262)
$000
3,149
(5)
(5,295)
-
(169)
North
4,654
Sumatera
44,080
(12,022)
$000
Interest income
320
Interest expense
-
Depreciation
(813)
Impairment losses
-
(Provision) / Reversal for expected credit loss
-
Inter-segment transactions
(551)
Inter-segmental revenue
-
Riau
Tax expense
(5,499)
$000
a
k
g
2022
m
n
a
o
52,321
Total assets
Total sales revenue (all external)
B
r
f
7,820
Non-current assets
77,688
- CPO, palm kernel and FFB
709
Non-current assets - additions
-
- Rubber
u
a
R
2,067
- Shell nut
- Biomass products
-
-
- Biogas products
* South Sumatera represents the operations which have been discontinued and have therefore been separated from the continuing operations. The details of discontinued operations for South Sumatera are
2,662
- Others
disclosed in note 9.
Total revenue
82,417
31
-
(5,922)
(185)
12
(1,960)
9,628
Kalimantan
(5,414)
$000
4,821
(5)
(16,346)
(185)
(214)
Total
(75)
Indonesia
56,419
(30,223)
$000
-
-
(374)
-
-
(291)
-
Bangka
(26)
$000
606,213
244,813
434,964
34,163
630
5,438
24
1,160
3,100
445,316
258,237
79,119
146,044
15,007
630
2,056
24
354
141
149,249
138,272
41,193
124,480
7,283
-
1,197
-
475
-
126,152
139,914
101,780
84,198
9,376
-
118
-
331
264
84,911
17,469
14,901
2,554
1,788
-
-
-
-
33
2,587
d
e
t
a
r
a
p
e
s
n
e
e
b
Malaysia
g
n
u
n
i
t
n
o
c
0
8
7
,
1
0
1
)
2
4
9
,
3
(
)
7
2
9
,
1
(
)
2
6
2
,
7
(
)
9
9
4
,
5
(
)
1
7
5
,
1
(
0
2
3
,
5
2
9
6
4
,
7
1
1
2
3
,
2
5
1
0
9
,
4
1
7
1
4
,
2
8
6
6
1
,
6
2
8
8
6
,
7
7
1
2
3
,
1
1
1
7
,
2
0
2
8
,
7
3
8
2
,
7
8
8
7
,
1
2
6
6
,
2
7
8
5
,
2
4
5
5
,
2
7
6
0
,
2
7
9
1
,
1
)
4
7
3
(
)
3
1
8
(
)
1
9
2
(
)
1
5
5
(
)
6
0
1
(
)
6
4
8
(
0
0
0
$
0
0
0
$
0
0
0
$
7
1
1
)
7
5
(
)
6
2
(
7
2
3
3
3
4
0
2
3
9
0
7
5
7
4
e
h
t
3
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
i
i
l
9
0
8
,
5
3
8
3
2
,
4
3
u
u
k
g
n
e
B
0
8
4
,
4
2
1
2
5
1
,
6
2
1
3
9
1
,
1
4
2
7
2
,
8
3
1
Profit / (loss) before tax
h
BA movement
t
r
o
N
Profit / (loss) for the year before tax per consolidated income
)
5
4
8
,
1
(
5
6
3
,
9
4
0
1
2
,
1
5
9
4
1
,
3
6
5
0
,
2
0
0
0
$
0
3
6
4
5
3
1
4
1
)
5
(
4
2
)
5
9
2
,
5
(
4
4
0
,
6
4
1
9
4
2
,
9
4
1
a
r
e
t
a
m
u
S
Annual Report 2022 | Anglo-Eastern Plantations Plc
statement
-
51,210
(1,845)
)
9
6
1
(
4
5
6
,
4
0
8
0
,
4
4
)
2
2
0
,
2
1
(
49,365
35,809
(1,571)
9
1
1
,
9
7
7
0
0
,
5
1
7
3
2
,
8
5
2
34,238
29,079
(1,354)
142,697
(5,722)
(721)
(70)
(3,243)
138,733
(5,792)
(1,105)
(178)
27,725
117
136,975
(791)
(3,243)
132,941
(1,283)
Interest income
Interest expense
Depreciation
Impairment losses
(Provision) / Reversal for expected credit loss
Inter-segment transactions
Inter-segmental revenue
Tax expense
Total assets
B
Non-current assets
F
F
Non-current assets - additions
d
n
a
)
l
a
n
r
e
t
x
e
e
m
o
c
n
i
d
e
t
a
d
i
l
o
s
n
o
c
r
e
p
x
a
t
e
r
o
f
e
b
r
a
e
y
e
h
t
3,149
(5)
(5,295)
-
(169)
4,654
44,080
(12,022)
s
s
o
l
t
i
d
e
r
c
d
e
t
c
e
p
x
e
r
o
f
258,237
79,119
15,007
1,321
-
(3,942)
-
(57)
(1,927)
2,711
(7,262)
138,272
41,193
7,283
s
n
o
i
t
i
d
d
a
s
t
n
e
s
e
r
l
e
p
n
e
r
r
e
a
k
r
* South Sumatera represents the operations which have been discontinued and have therefore been separated from the continuing operations. The details of discontinued operations for South Sumatera are
e
m
a
m
a
disclosed in note 9.
p
u
S
O
h
P
C
s
t
c
u
d
o
r
p
s
s
a
m
o
B
s
t
c
u
d
o
r
p
s
a
g
o
B
l
l
a
(
e
u
n
e
v
e
r
s
e
e
r
o
f
e
b
)
s
s
o
l
(
s
n
o
i
t
c
a
s
n
a
r
t
t
n
e
m
e
t
a
t
s
l
a
s
r
e
v
e
R
e
s
n
e
p
x
e
-
o
g
n
A
.
9
e
t
o
n
n
e
u
n
e
v
e
r
e
u
n
e
v
e
r
-
s
t
e
s
s
a
r
e
b
b
u
R
s
r
e
h
t
O
e
m
o
c
n
s
t
e
s
s
a
s
t
e
s
s
a
s
e
s
s
o
)
s
s
o
l
(
t
n
e
m
e
h
S
t
u
n
x
a
t
r
o
f
a
s
l
l
l
|
/
i
i
l
i
i
/
l
l
t
t
l
l
/
l
,
l
i
i
i
l
t
n
e
m
e
v
o
m
A
B
n
o
i
t
a
c
e
r
p
e
D
)
n
o
s
v
o
r
P
(
r
i
a
p
m
I
a
t
n
e
m
g
e
s
-
r
e
t
n
t
n
e
m
g
e
s
-
r
e
t
n
I
I
e
s
n
e
p
x
e
x
a
T
t
s
e
r
e
t
n
t
s
e
r
e
t
n
I
I
t
n
e
r
r
u
c
-
n
o
N
t
n
e
r
r
u
c
-
n
o
N
a
t
o
T
2
2
0
2
a
t
o
T
-
-
-
-
-
-
a
t
o
T
t
i
f
o
r
P
t
i
f
o
r
P
d
e
s
o
c
s
d
i
u
o
S
*
Annual Report 2022 | Anglo-Eastern Plantations Plc
433
(106)
327
-
-
(374)
-
-
(291)
-
(26)
17,469
14,901
1,788
4,821
(5)
(16,346)
(185)
(214)
(75)
56,419
(30,223)
606,213
244,813
34,163
31
-
(5,922)
(185)
12
(1,960)
9,628
(5,414)
c
l
P
s
n
o
i
t
a
t
n
a
l
P
n
139,914
r
e
t
101,780
s
a
9,376
E
2
2
0
2
t
r
o
p
e
R
l
a
u
n
n
A
117
s
t
n
e
m
e
t
a
t
S
i
l
a
i
c
n
a
n
F
d
e
t
a
d
i
l
o
s
n
o
C
e
h
t
o
t
s
e
t
o
N
d
e
u
n
i
t
n
o
c
-
n
o
i
t
a
m
r
o
f
n
i
t
n
e
m
g
e
S
6
e
r
a
Riau
a
r
e
$000
t
a
m
u
S
h
t
u
77,688
o
S
-
2,067
-
-
2,662
82,417
s
n
o
i
t
a
r
e
p
o
r
o
f
d
e
u
n
i
t
n
o
c
s
d
l
i
a
t
e
d
e
h
T
i
26,166
(846)
f
o
s
25,320
e
r
o
f
e
r
e
h
t
e
v
a
h
d
n
a
d
e
u
n
i
t
n
o
c
s
d
26,166
(846)
25,320
i
320
n
-
e
e
b
(813)
e
v
-
a
h
-
h
c
h
(551)
w
-
s
n
o
(5,499)
i
t
a
r
e
p
o
i
e
h
t
52,321
7,820
709
Notes to the Consolidated Financial Statements
6 Segment information - continued
-
-
-
-
0
0
0
$
9
9
9
,
7
0
7
2
9
6
2
,
8
4
6
)
6
8
7
,
4
(
*
h
t
u
o
S
a
r
e
t
a
m
u
S
l
i
6
3
3
5
9
6
9
9
9
a
t
o
T
0
0
0
$
6
3
0
,
4
6
3
4
,
6
2
4
g
n
u
n
i
t
n
o
c
s
n
o
i
t
a
r
e
p
o
2021
m
Total sales revenue (all external)
o
r
f
- CPO, palm kernel and FFB
- Rubber
- Shell nut
- Biomass products
K
U
- Biogas products
- Others
Total revenue
0
0
0
$
-
-
-
-
-
-
-
-
-
9
1
9
1
9
1
2
4
,
3
3
4
1
9
9
4
3
,
4
4
3
7
,
2
3
1
-
)
5
2
3
,
1
(
5
-
)
8
7
9
,
1
(
-
)
6
1
7
(
)
1
3
2
,
1
(
)
4
2
(
4
1
2
,
3
7
3
4
,
5
)
4
9
9
,
6
1
(
)
5
8
5
(
7
7
1
-
-
-
-
-
1
)
2
2
7
,
4
(
3
8
0
,
7
3
1
)
5
2
3
,
1
(
l
i
7
2
0
0
0
$
5
7
6
,
2
a
s
y
a
Profit / (loss) before tax
a
M
BA movement
Profit / (loss) for the year before tax per consolidated income statement
2
0
7
,
2
5
1
1
3
-
)
7
1
5
(
)
9
(
)
1
7
6
(
)
3
3
1
(
-
6
7
4
l
Notes to the Consolidated Financial Statements
41,820
a
t
o
T
9
9
1
,
3
7
3
4
,
5
8
1
3
,
4
6
3
0
,
4
0
0
0
$
6
7
1
9
9
9
1
0
8
5
9
6
6
3
3
36,469
a
t
e
d
i
)
5
1
(
)
3
2
3
,
6
1
(
)
2
5
4
(
)
9
6
0
,
5
1
(
8
3
6
,
4
5
)
1
1
4
,
5
2
(
4
3
6
,
7
6
5
2
5
7
,
1
5
2
7
9
4
,
2
2
8
2
6
,
0
3
4
6
7
5
,
4
3
1
1
6
7
,
3
2
4
a
s
e
n
o
d
n
I
)
6
8
4
(
4
9
8
,
8
3
1
8
3
4
,
7
North
Sumatera
)
7
2
9
,
1
(
9
1
5
,
4
1
$000
)
9
1
5
,
4
1
(
8
3
6
,
4
5
)
2
4
7
,
5
2
(
-
127,216
695
1,173
336
114
93
129,627
)
9
1
2
(
-
)
2
1
1
(
40,160
1,660
4
7
5
5
0
,
4
1
4
4
5
,
8
8
5
2
5
1
,
7
8
5
7
,
3
1
3
5
6
,
5
4
2
4
,
3
4
1
0
,
3
2
e
r
a
a
Bengkulu
r
e
t
a
$000
m
u
S
h
t
u
o
141,070
S
-
1,191
-
485
20
142,766
s
n
o
i
t
a
r
e
p
o
r
o
f
-
2
3
5
,
0
6
2
-
7
1
5
0
8
7
,
8
35,769
700
f
o
i
d
e
u
n
i
t
n
o
c
s
d
s
l
i
e
h
T
Total
Indonesia
Riau
$000
Bangka
$000
Kalimantan
$000
Malaysia
$000
UK
$000
$000
South*
Sumatera
Total from
continuing
operations
$000
73,827
-
1,440
-
-
89
75,356
20,555
574
21,129
2,178
-
-
-
-
16
2,194
553
111
664
79,470
-
232
-
400
583
80,685
37,539
1,273
423,761
695
4,036
336
999
801
430,628
134,576
4,318
2,675
-
-
-
-
27
2,702
91
91
(517)
(1,325)
31
426,436
695
4,036
336
999
919
433,421
132,734
4,349
38,812
138,894
(486)
(1,325)
137,083
(4,722)
6 Segment information - continued
-
-
-
-
-
-
-
i
l
6
1
2
2
a
K
1
1
1
3
5
5
2
3
2
3
8
5
0
0
4
0
8
1
0
0
0
$
0
0
0
$
)
2
5
4
(
8
7
1
,
2
3
7
2
,
1
4
9
1
,
2
2
7
0
,
7
1
3
4
,
9
7
3
4
,
5
0
7
4
,
9
7
9
3
5
,
7
3
5
8
6
,
0
8
2
1
8
,
8
3
)
4
3
9
,
1
(
)
9
7
3
,
6
(
)
0
6
6
,
5
(
8
7
5
,
5
4
1
4
4
8
,
8
0
1
.
s
n
o
i
t
a
r
e
p
o
2,323
(15)
(5,270)
-
-
North
(4)
Sumatera
902
42,566
$000
(8,939)
Interest income
Interest expense
n
a
Depreciation
t
n
a
Reversal of impairment
m
Impairment losses
(Provision) / Reversal for expected credit loss
a
Inter-segment transactions
k
g
Inter-segmental revenue
n
a
B
Tax expense
2021
u
Total sales revenue (all external)
Total assets
a
R
- CPO, palm kernel and FFB
Non-current assets
- Rubber
Non-current assets - additions
- Shell nut
u
u
- Biomass products
* South Sumatera represents the operations which have been discontinued and have therefore been separated from the continuing operations. The details of discontinued operations for South Sumatera are
k
g
n
- Biogas products
disclosed in note 9.
e
B
- Others
Total revenue
22
-
(5,660)
5,437
(452)
180
(1,934)
Kalimantan
9,431
$000
(6,379)
720
-
(4,132)
-
-
-
(2,001)
Bengkulu
2,641
$000
(7,831)
m
o
r
f
3,199
(15)
(16,323)
5,437
(452)
Total
176
Indonesia
(15,069)
54,638
$000
(25,411)
1
-
(356)
-
-
-
(282)
Bangka
-
$000
(109)
133
-
(905)
-
-
-
(11,754)
Riau
-
$000
(2,153)
117,748
141,070
42,027
-
4,727
1,191
-
485
20
142,766
252,633
127,216
77,170
695
8,490
1,173
336
114
93
129,627
145,578
79,470
108,844
-
7,072
232
-
400
583
80,685
567,634
423,761
251,752
695
22,497
4,036
336
999
801
430,628
34,580
73,827
8,751
-
608
1,440
-
-
89
75,356
17,095
2,178
14,960
-
1,600
-
-
-
16
2,194
d
e
t
a
r
a
p
e
s
n
e
e
b
e
r
o
f
e
r
e
h
t
g
n
u
n
i
t
n
o
c
e
h
t
)
4
5
7
,
1
1
(
8
4
7
,
7
1
1
6
6
7
,
2
4
1
0
7
0
,
1
4
1
)
2
3
1
,
4
(
)
3
5
1
,
2
(
)
1
3
8
,
7
(
)
1
0
0
,
2
(
7
2
0
,
2
4
5
9
0
,
7
1
0
8
5
,
4
3
0
6
9
,
4
1
6
5
3
,
5
7
9
6
7
,
5
3
5
5
5
,
0
2
9
6
4
,
6
3
9
2
1
,
1
2
7
2
8
,
3
7
1
5
7
,
8
1
4
6
,
2
0
0
6
,
1
7
2
7
,
4
0
4
4
,
1
1
9
1
,
1
)
6
5
3
(
)
5
0
9
(
)
9
0
1
(
)
2
8
2
(
0
0
0
$
0
0
0
$
8
1
1
0
2
7
5
8
4
0
0
7
3
3
1
8
0
6
4
7
5
4
6
6
0
2
9
8
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
i
i
l
5
9
6
0
0
0
$
a
r
e
t
a
m
u
S
h
t
r
Profit / (loss) before tax
o
N
BA movement
Profit / (loss) for the year before tax per consolidated income statement
0
6
6
,
1
0
6
1
,
0
4
6
3
3
4
1
1
3
9
7
2
6
,
9
2
1
6
1
2
,
7
2
1
0
2
8
,
1
4
3
2
3
,
2
3
7
1
,
1
-
-
)
5
1
(
)
0
7
2
,
5
(
)
4
(
2
0
9
)
9
3
9
,
8
(
6
6
5
,
2
4
40,160
1,660
0
9
4
,
8
0
7
1
,
7
7
3
3
6
,
2
5
2
35,769
700
553
111
664
37,539
1,273
134,576
4,318
(517)
(1,325)
31
38,812
138,894
(486)
(1,325)
137,083
(4,722)
3,214
(24)
(16,994)
5,437
(585)
Total from
177
continuing
(14,519)
operations
54,638
(25,742)
$000
5
-
-
(1,978)
(716)
South*
(1,231)
Sumatera
14,519
7,438
$000
(1,927)
476
Malaysia
-
$000
(112)
$000
(219)
1
74
UK
-
7,152
15
(9)
(671)
(133)
-
-
13,758
2,675
8,780
517
-
-
-
-
27
2,702
91
91
$000
7,999
-
-
-
-
270
8,269
(4,786)
64
14,055
7,999
5,653
3,424
-
-
-
-
270
8,269
(4,786)
64
5
-
-
(1,978)
(716)
(1,231)
14,519
7,438
(1,927)
14,055
5,653
3,424
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
588,544
426,436
260,532
23,014
695
4,036
336
999
919
433,421
132,734
4,349
3,214
(24)
(16,994)
5,437
(585)
177
(14,519)
54,638
(25,742)
588,544
260,532
23,014
118
22
-
(5,660)
5,437
(452)
180
(1,934)
9,431
(6,379)
3,199
(15)
(16,323)
5,437
(452)
176
(15,069)
54,638
(25,411)
145,578
108,844
7,072
567,634
251,752
22,497
13,758
8,780
517
15
(9)
(671)
(133)
476
-
-
-
(112)
(219)
1
74
-
7,152
1
-
(356)
-
-
-
(282)
-
(109)
17,095
14,960
1,600
c
l
P
s
n
o
i
t
a
t
n
a
l
P
n
r
e
t
s
a
E
l
-
o
g
n
A
Annual Report 2022 | Anglo-Eastern Plantations Plc
Interest income
Interest expense
Depreciation
Reversal of impairment
Impairment losses
(Provision) / Reversal for expected credit loss
Inter-segment transactions
Inter-segmental revenue
Tax expense
Total assets
Non-current assets
Non-current assets - additions
B
F
F
d
n
a
l
l
l
)
l
a
n
r
e
t
x
e
a
(
t
n
e
m
e
t
a
t
s
e
m
o
c
n
i
d
e
t
a
d
i
l
o
s
n
o
c
r
e
p
x
a
t
e
r
o
f
e
b
r
a
e
y
e
h
t
e
n
r
* South Sumatera represents the operations which have been discontinued and have therefore been separated from the continuing operations. The details of discontinued operations for South Sumatera are
e
k
m
disclosed in note 9.
a
p
.
9
e
t
o
n
n
s
t
c
u
d
o
r
p
a
s
r
e
v
e
R
e
u
n
e
v
e
r
s
t
e
s
s
a
s
t
e
s
s
a
2
2
0
2
s
e
s
s
o
r
i
a
p
m
r
o
a
-
|
f
t
/
t
t
t
t
t
f
t
i
l
i
l
l
l
s
t
c
u
d
o
r
p
s
s
a
m
o
B
i
x
a
t
e
r
o
f
e
b
)
s
s
o
l
(
/
t
i
f
o
r
P
n
e
m
e
v
o
m
A
B
)
s
s
o
l
(
/
t
i
f
o
r
P
e
u
n
e
v
e
r
l
t
a
o
T
s
e
a
s
l
,
O
P
C
r
e
b
b
u
R
u
n
l
l
e
h
S
s
a
g
o
B
i
s
r
e
h
O
t
1
2
0
2
l
t
a
o
T
t
n
e
m
e
s
n
e
p
x
e
t
s
e
r
e
n
t
I
e
m
o
c
n
i
t
s
e
r
e
n
t
I
n
o
i
t
i
a
c
e
r
p
e
D
o
l
a
s
r
e
v
e
R
n
e
m
r
i
a
p
m
I
i
)
n
o
s
v
o
r
i
P
(
s
n
o
i
t
c
a
s
n
a
r
t
n
e
m
g
e
s
-
r
e
n
t
n
e
m
g
e
s
-
r
e
n
t
e
s
n
e
p
x
e
x
a
T
s
t
e
s
s
a
l
t
a
o
T
n
e
r
r
u
c
-
n
o
N
n
e
r
r
u
c
-
n
o
N
-
-
-
-
-
-
I
I
41,820
2,323
(15)
(5,270)
-
-
(4)
902
42,566
(8,939)
252,633
77,170
8,490
e
u
n
e
v
e
r
s
s
o
l
t
i
d
e
r
c
d
e
t
c
e
p
x
e
r
o
f
20,555
574
21,129
133
-
(905)
-
-
-
(11,754)
-
(2,153)
34,580
8,751
608
e
v
a
h
d
n
a
d
e
u
n
i
t
n
o
c
s
d
i
36,469
720
n
-
e
e
b
(4,132)
e
v
-
a
h
-
h
c
-
h
w
(2,001)
s
n
o
2,641
i
t
a
r
(7,831)
e
p
o
e
h
t
i
117,748
42,027
4,727
s
n
o
i
t
i
d
d
a
s
t
n
e
s
e
r
p
e
r
a
r
e
t
a
m
u
S
h
t
u
o
S
*
d
e
u
n
i
t
n
o
c
-
n
o
i
t
a
m
r
o
f
n
i
t
n
e
m
g
e
S
6
d
e
s
o
c
s
d
i
l
t
r
o
p
e
R
l
a
u
n
n
A
118
Annual Report 2022 | Anglo-Eastern Plantations Plc
s
t
n
e
m
e
t
a
t
S
i
l
a
i
c
n
a
n
F
d
e
t
a
d
i
l
o
s
n
o
C
e
h
t
o
t
s
e
t
o
N
Notes to the Consolidated Financial Statements
6 Segment information - continued
,
2
2
0
2
f
o
%
0
1
p
u
e
d
a
m
4
o
t
I
f
o
i
1
A
s
a
.
r
a
e
y
r
o
i
r
p
e
h
t
n
s
t
n
e
r
m
e
m
2022
e
r
o
i
u
t
Customer 1
s
q
u
e
C
r
Customer 2
e
h
h
g
Customer 3
t
u
h
o
t
Customer 4
h
i
w
t
l
e
c
n
a
d
r
o
c
c
a
n
2021
Customer 1
Customer 2
Customer 3
Customer 4
.
s
n
o
i
t
a
r
e
p
o
g
n
u
n
i
t
n
o
c
e
h
t
e
r
e
w
s
r
e
m
o
t
s
u
c
e
u
n
e
v
e
r
e
m
a
s
i
l
i
h
t
u
o
S
0
0
0
$
a
r
e
t
a
m
u
S
l
a
t
o
T
0
0
0
$
K
U
0
0
0
$
0
0
0
$
i
a
s
y
a
a
M
r
e
v
o
r
a
e
y
n
I
Below is an analysis of revenue from the Group’s top 4 customers, incorporating all those contributing greater than 10% of the Group’s external revenue in accordance with the requirements of IFRS 8. In year 2022,
revenue from top 4 customers of the Indonesian segment represents approximately $263.0m (2021: $266.3m) of the Group’s total revenue for continuing operations. Although Customer 1 to 4 made up over 10% of
the Group’s total revenue, there was no over reliance on these Customers as tenders were performed on a weekly basis. Three of the top four customers were the same as in the prior year.
.
8
S
R
F
-
-
-
-
-
-
-
North
Sumatera
$000
-
-
-
Bengkulu
$000
-
%
-
Riau
$000
-
-
-
Bangka
$000
-
-
-
Kalimantan
$000
-
-
3
9
8
,
5
5
1
5
1
,
3
3
3
8
5
,
7
2
4
5
3
,
6
4
1
1
8
9
,
2
6
2
6
6
7
,
0
5
1
7
8
,
0
2
1
8,694
51,854
-
27,583
88,131
3
3
3
,
8
4
4
2
3
,
6
4
4
9
2
,
6
6
2
-
-
-
-
-
-
-
-
-
-
%
%
46,280
4,039
33,151
-
83,470
6
.
2
3
5
.
2
1
4
.
7
30,750
-
-
-
30,750
7
.
8
5
2
.
6
-
-
-
-
-
2
.
1
1
8
.
7
2
8
.
1
1
7
.
0
1
5
.
1
6
-
-
-
-
-
-
-
-
-
-
Total
Indonesia Malaysia
$000
$000
UK
$000
146,354
55,893
33,151
27,583
262,981
-
-
-
-
-
Notes to the Consolidated Financial Statements
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,203
-
48,333
-
50,536
-
-
36,104
31,431
-
46,324
113,859
-
%
36,909
-
-
-
36,909
-
-
-
-
-
-
120,871
50,766
48,333
46,324
266,294
-
-
-
-
-
6 Segment information - continued
l
i
l
’
l
r
o
f
a
t
o
t
r
u
o
f
a
t
o
T
0
0
0
$
p
o
t
e
h
t
e
u
n
e
v
e
r
a
n
r
e
t
x
e
s
p
u
2022
o
r
G
Below is an analysis of revenue from the Group’s top 4 customers, incorporating all those contributing greater than 10% of the Group’s external revenue in accordance with the requirements of IFRS 8. In year 2022,
Customer 1
e
Customer 2
h
revenue from top 4 customers of the Indonesian segment represents approximately $263.0m (2021: $266.3m) of the Group’s total revenue for continuing operations. Although Customer 1 to 4 made up over 10% of
t
f
o
Customer 3
the Group’s total revenue, there was no over reliance on these Customers as tenders were performed on a weekly basis. Three of the top four customers were the same as in the prior year.
%
Customer 4
0
1
n
a
h
t
32.6
12.5
7.4
6.2
58.7
Total
10.3
0.9
7.4
-
18.6
13.5
-
-
-
13.5
6.9
-
-
-
6.9
a
c
h
p
a
r
g
o
e
g
s
p
u
o
r
G
e
h
t
a
s
e
n
o
d
n
I
-
-
-
-
-
-
-
-
-
-
f
o
e
e
r
h
T
s
a
,
a
e
r
a
4
9
2
,
6
6
2
4
5
3
,
6
4
1
1
8
9
,
2
6
2
1
7
8
,
0
2
1
n
a
t
n
a
m
3
3
3
,
8
4
4
2
3
,
6
4
0
9
9
,
4
6
5
5
6
,
5
4
5
3
3
,
9
1
6
6
7
,
0
5
0
3
6
,
0
6
3
9
8
,
5
5
1
5
1
,
3
3
3
8
5
,
7
2
0
3
6
,
0
6
0
0
0
$
9
1
1
5
.
3
1
6
.
2
3
5
.
2
1
5
.
3
1
7
.
8
5
5
.
0
1
8
.
7
2
8
.
1
1
2
.
1
1
7
.
0
1
0
.
5
1
5
.
1
6
5
.
4
4
.
7
2
.
6
%
%
%
%
%
%
%
%
%
%
-
-
-
-
-
-
-
-
-
-
l
i
’
i
l
l
Save for a small amount of rubber, all the Group’s operations are devoted to oil palm. The Group’s report is by geographical area, as each area tends to have different agricultural conditions.
.
s
n
o
i
t
i
d
n
o
c
t
n
e
r
e
f
f
i
d
e
v
a
h
o
t
l
a
r
u
t
l
u
c
i
r
g
a
60,630
-
-
-
60,630
45,655
19,335
-
-
64,990
s
d
n
e
t
a
e
r
a
h
c
a
e
South
Sumatera
$000
Total
$000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
146,354
55,893
33,151
27,583
262,981
120,871
50,766
48,333
46,324
266,294
%
32.6
12.5
7.4
6.2
58.7
Total
$000
27.8
146,354
11.8
55,893
11.2
33,151
10.7
27,583
61.5
262,981
120,871
50,766
48,333
46,324
266,294
%
32.6
12.5
7.4
6.2
58.7
27.8
11.8
11.2
10.7
61.5
South
Sumatera
$000
%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
%
%
%
-
-
-
-
-
-
-
-
-
-
UK
$000
Indonesia Malaysia
$000
-
-
-
-
-
-
-
-
-
-
$000
27.8
11.8
146,354
11.2
55,893
10.7
33,151
27,583
61.5
262,981
120,871
50,766
48,333
46,324
266,294
119
-
-
-
-
-
%
c
l
P
s
n
o
32.6
i
t
a
12.5
t
n
a
7.4
l
P
6.2
n
r
e
58.7
t
s
a
E
|
l
-
o
g
27.8
n
A
11.8
2
11.2
2
0
2
10.7
t
r
o
61.5
p
e
R
a
u
n
n
A
0
0
0
$
l
u
u
k
g
n
e
B
-
9
3
0
,
4
0
8
2
,
6
4
1
5
1
,
3
3
0
7
4
,
3
8
4
0
1
,
6
3
1
3
4
,
1
3
Annual Report 2022 | Anglo-Eastern Plantations Plc
h
t
r
o
N
0
0
0
$
a
r
e
t
a
m
u
S
-
4
9
6
,
8
4
5
8
,
1
5
3
8
5
,
7
2
1
3
1
,
8
8
-
3
0
2
,
2
3
3
3
,
8
4
i
l
a
K
0
0
0
$
a
k
g
n
a
B
u
a
R
i
0
0
0
$
-
-
-
-
-
-
-
-
-
-
-
%
-
Bengkulu
$000
8.3
7.3
46,280
-
4,039
10.7
33,151
-
26.3
83,470
9
.
6
%
-
-
-
Riau
$000
8.5
-
30,750
-
-
-
-
-
8.5
30,750
9
.
6
-
-
Bangka
$000
-
-
-
-
-
-
-
-
-
-
5
.
8
-
-
-
-
-
-
-
-
0
5
7
,
0
3
0
5
7
,
0
3
9
0
9
,
6
3
1.9
11.6
-
6.2
19.7
North
Sumatera
$000
0.5
-
8,694
11.2
51,854
-
-
27,583
11.7
88,131
-
-
-
-
-
-
9
0
9
,
6
3
9
5
8
,
3
1
1
-
4
2
3
,
6
4
2,203
-
48,333
-
50,536
-
6
3
5
,
0
5
%
1.9
11.6
-
6.2
19.7
0.5
-
11.2
-
r
e
11.7
m
o
4
y
b
i
’
-
s
t
r
o
p
e
r
Kalimantan
$000
10.5
4.5
60,630
s
p
-
-
u
o
-
-
r
G
e
-
15.0
h
T
60,630
m
a
p
5
.
8
.
l
l
i
o
o
t
d
e
t
o
v
e
d
e
r
a
45,655
19,335
-
-
64,990
7
.
0
1
3
.
6
2
-
7
.
1
1
3
.
8
3
.
7
-
5
.
0
-
-
-
-
-
-
2
.
1
1
%
-
-
-
-
-
-
-
-
-
r
e
-
m
o
3
4
r
e
m
o
1
2
r
e
m
o
r
e
m
o
s
n
o
i
t
a
r
e
p
o
%
’
s
p
u
o
r
G
e
h
t
13.5
-
-
-
13.5
a
l
l
,
r
e
b
b
u
r
f
o
t
n
10.5
u
o
4.5
m
a
-
-
15.0
a
m
s
a
l
l
r
o
f
%
9
.
0
3
.
0
1
36,104
31,431
-
46,324
113,859
9
.
1
6
.
1
1
4
.
7
-
-
6
.
8
1
36,909
-
-
-
36,909
7
.
9
1
2
.
6
%
%
10.3
0.9
7.4
-
18.6
2
1
8.3
7.3
-
10.7
r
r
e
e
26.3
m
m
o
o
t
t
s
s
u
u
C
C
2
2
0
2
3
4
r
e
m
o
t
s
u
C
r
e
m
o
t
s
u
C
%
6.9
-
-
-
6.9
8.5
-
-
-
8.5
l
i
i
l
)
f
o
:
1
2
0
2
(
m
0
.
3
6
2
$
a
g
n
i
t
a
r
o
p
r
o
c
n
.
s
s
a
b
y
k
e
e
m
w
3
a
2021
.
6
n
6
o
Customer 1
2022
2
$
d
e
Customer 2
Customer 1
m
r
o
Customer 3
Customer 2
f
r
e
Customer 4
Customer 3
p
e
Customer 4
r
e
w
s
r
e
d
n
e
t
r
e
t
a
e
r
g
g
n
i
t
u
b
i
r
t
n
o
c
e
s
o
h
t
y
e
t
a
m
2021
x
Customer 1
o
r
p
Customer 2
p
a
Customer 3
,
s
Customer 4
r
e
m
o
t
s
u
c
4
s
a
s
r
e
m
o
t
s
u
C
e
s
e
h
t
t
n
e
m
g
2022
e
s
s
Customer 1
n
p
a
u
s
Customer 2
o
e
r
G
n
Customer 3
o
e
d
h
n
Customer 4
t
I
m
s
a
o
w
r
f
e
r
e
h
t
f
o
s
r
e
2021
m
o
t
Customer 1
s
u
c
Customer 2
Customer 3
Customer 4
s
t
n
e
s
e
r
p
e
r
,
e
u
n
e
v
e
r
e
u
n
e
v
e
r
n
o
e
c
n
a
r
e
v
o
o
n
p
o
t
a
t
o
e
h
t
p
o
t
s
s
y
a
n
a
n
a
m
o
r
f
e
r
f
o
4
i
l
t
’
i
l
’
l
i
s
i
s
p
u
o
r
G
e
h
e
u
n
e
v
e
r
d
e
u
n
i
t
n
o
c
-
n
o
i
t
a
m
r
o
f
n
i
t
n
e
m
g
e
S
6
s
t
n
e
m
e
t
a
t
S
i
l
a
i
c
n
a
n
F
d
e
t
a
d
i
l
o
s
n
o
C
e
h
t
o
t
s
e
t
o
N
1
2
3
4
r
e
m
o
t
s
u
C
r
e
m
o
t
s
u
C
r
e
m
o
t
s
u
C
r
e
m
o
t
s
u
C
2
2
0
2
1
2
r
e
m
o
r
e
m
o
3
r
e
m
o
t
s
u
C
1
2
0
2
w
o
Save for a small amount of rubber, all the Group’s operations are devoted to oil palm. The Group’s report is by geographical area, as each area tends to have different agricultural conditions.
e
B
e
v
a
S
t
l
l
t
s
u
C
t
s
u
C
t
s
u
C
t
s
u
C
t
s
u
C
t
s
u
C
t
s
u
C
1
2
0
2
Annual Report 2022 | Anglo-Eastern Plantations Plc
119
Notes to the Consolidated Financial Statements
7 Employees' and Directors' remuneration
Average numbers employed (primarily overseas) during the year:
- full-time
- part-time field workers*
2022
Number
7,873
8,384
16,257
* Part-time field workers headcounts based on full time equivalent of 8 hours per day are 6,657 (2021: 6,191).
The split between continuing and discontinued operations is shown on page 55 in Strategic Report.
Staff costs (including Directors and discontinued operations) comprise:
Wages and salaries
Social security costs
Retirement benefit costs
- United Kingdom
- Indonesia (note 21)
- Malaysia
2022
$000
55,775
3,826
-
2,736
53
62,390
2021
Number
7,618
7,941
15,559
2021
$000
51,736
3,799
-
411
50
55,996
The information required by the Companies Act is contained in the Directors' remuneration report on pages 82 - 89 of which certain information
on page 86 has been audited.
Directors emoluments
Remuneration expense for key management personnel comprise:
Short-term employee benefits
Post-employment benefits
2022
$000
194
2022
$000
1,656
-
1,656
2021
$000
187
2021
$000
1,835
-
1,835
The Executive Director, Non-Executive Directors and senior management (general managers and above) are considered to be the key
management personnel. The remuneration of Executive Director and Non-Executive Directors is shown on page 86.
Annual Report 2022 | Anglo-Eastern Plantations Plc
120
Notes to the Consolidated Financial Statements
8 Tax expense
Foreign corporation tax - current year
Foreign corporation tax - prior year
Deferred tax adjustment - origination and reversal of temporary differences (note 14)
Deferred tax - prior year (note 14)
Total tax charge for year
2022
$000
29,727
7
832
895
31,461
2021
$000
20,404
258
5,080
-
25,742
Corporation tax rate in Indonesia is at 22% (2021: 22%) whereas Malaysia is at 24% (2021: 24%). The standard rate of corporation tax in the
UK for the current year is 19% (2021: 19%). The Group’s charge for the year differs from the standard Indonesian rate of corporation tax as
explained below:
Profit before tax from continuing operations
Profit before tax multiplied by standard rate of Indonesia corporation tax of 22% (2021: 22%)
Effects of:
Rate adjustment relating to overseas profits
Group accounting adjustments not subject to tax
Expenses not allowable for tax
Deferred tax assets not recognised
Income not subject to tax
Under provision of prior year income tax
Utilisation of tax losses not previously recognised
Under provision of prior year deferred tax
Change in tax rate
Total tax charge for year
2022
$000
132,941
29,247
1,205
(237)
1,213
69
(1,063)
7
125
895
-
31,461
2021
$000
137,083
30,158
(30)
(1,023)
263
(10)
(659)
258
(3,215)
-
-
25,742
The above reconciliation has been prepared by reference to the Indonesian tax rate rather than the UK tax rate as, in accordance with IAS 12,
this is the applicable tax rate that provides the most meaningful information, given this is the country in which the majority of tax arises.
The tax receivables represent the corporate income tax (“CIT”) and value added tax (“VAT”) that have yet to be refunded by the Indonesia tax
authority. The tax receivables relating to CIT arose due to over payment of tax. The tax receivables relating to VAT arose because the majority
of the Groups’ CPO was sold to bonded zones which do not attract output VAT and thus the input VAT incurred is claimable. Upon submission
of a tax return (for CIT) or a request letter (for VAT refund), a tax audit will be conducted by the tax authority and whilst every effort is made to
resolve this quickly, the process can sometimes take more than 12 months.
The breakdown of the tax receivables and tax liabilities is as follows:
Tax Receivables
Income tax
Transfer to assets held for sale (note 9)
Other taxes
Transfer to assets held for sale (note 9)
Tax Liabilities
Income tax
Other taxes
2022
$000
4,122
-
4,122
37,576
-
37,576
41,698
(10,230)
(1,221)
(11,451)
2021
$000
5,072
(12)
5,060
45,481
(46)
45,435
50,495
(13,139)
(1,615)
(14,754)
Annual Report 2022 | Anglo-Eastern Plantations Plc
121
Notes to the Consolidated Financial Statements
9 Assets held for sale and discontinued operations
AEP is in the process of selling three of its non performing plantations in South Sumatera following the Board’s approval to dispose the operation
of RAA, KKST and ELAP to cut losses. A MOU was signed with a potential buyer from Indonesia in December 2022 for a period of exclusivity
to conduct legal and financial due diligence. However, the potential buyer decided not to proceed following the completion of the due diligence.
Since this transaction did not materialise, the book value of the three plantations for sale is further impaired by $5 million. The management is
currently in discussion with another interested buyer and aimed to complete the sale of the three plantations as soon as practicable.
The entire operations of the disposal group are presented within the South Sumatera operating segment disclosed in Note 7 and represent a
separate geographical area of operations. The activities for the financial years ending 31 December 2022 and 31 December 2021 have been
classified as discontinued operations in the consolidated income statement as a single line.
The post-tax loss on disposal of discontinued operations was determined as follows:
2022
Result
before
BA
movement
Note
BA
movement
Total
Result
before
BA
movement
2021
BA
movement
$000
$000
$000
$000
$000
(Loss) / Profit before tax
5
(1,105)
(178)
(1,283)
Discontinued operations
Revenue
Cost of sales
Gross (loss) / profit
Administration expenses
Impairment loss
Reversal / (Provision) for
expected credit loss
Operating (loss) / profit
Exchange gains
Finance income
Finance expense
6
9,306
-
9,306
8,269
(10,389)
(178)
(10,567)
(11,052)
(1,083)
(178)
(1,261)
(2,783)
12
17
(120)
-
91
-
-
-
(120)
-
91
(1,112)
(178)
(1,290)
3
4
-
-
-
-
3
4
-
(62)
(716)
(1,231)
(4,792)
1
5
-
(4,786)
(1,913)
(6,699)
(21,772)
(28,471)
39
494
(139)
(789)
-
(5,034)
(139)
(5,823)
(132)
(4,521)
(27,760)
(7)
(1,302)
(711)
(139)
(5,823)
(28,471)
(11.41)cts
(11.41)cts
455
(650)
(5,034)
(5,684)
(4,389)
(1,295)
(5,684)
Tax expense
(Loss) / Profit for the year from
discontinued operations
Impairment loss on adjustment to
fair value
Attributable to:
- Owners of the parent
- Non-controlling interests
Earnings per share attributable
to the owners of the parent
during the year
- Basic and diluted EPS before BA movement
- Basic and diluted EPS after BA movement
Annual Report 2022 | Anglo-Eastern Plantations Plc
-
64
64
-
-
-
64
-
-
-
64
(14)
50
-
50
47
3
50
Total
$000
8,269
(10,988)
(2,719)
(62)
(716)
(1,231)
(4,728)
1
5
-
(4,722)
(1,927)
(6,649)
(21,772)
(28,421)
(27,713)
(708)
(28,421)
(69.92)cts
(69.92)cts
122
Notes to the Consolidated Financial Statements
9 Assets held for sale and discontinued operations - continued
Statement of cash flows
The statement of cash flows includes the following amounts relating to discontinued operations:
Operating activities
Investing activities
Financing activities
Net decrease in cash and cash equivalents from discontinued operations
2022
$000
(1,332)
(1,865)
-
(3,197)
2021
$000
(821)
(1,594)
-
(2,415)
The following major classes of assets relating to the discontinued operations have been classified as held for sale in the consolidated statement
of financial position on 31 December:
Property, plant and equipment (note 12)
Impairment loss on adjustment to fair value
Property, plant and equipment net of impairment losses
Non-current receivables (note 13)
Deferred tax assets (note 14)
Inventories (note 15)
Income tax receivable (note 8)
Other tax receivable (note 8)
Biological assets (note 16)
Trade and other receivables (note 17)
Exchange differences
Total assets held for sale
2022
$000
25,512
(24,547)
965
4,128
3,306
213
49
-
107
232
-
9,000
2021
$000
27,425
(21,772)
5,653
3,338
3,124
729
46
12
303
68
(63)
13,210
An impairment loss of $24,547,000 (2021: $21,772,000) on the measurement of the disposal group to fair value less cost to sell has been
recognised and was included in discontinued operations. The difference of impairment loss was due to exchange in translation and further
impairment of $5,034,000 in 2022. The fair value less cost to sell has been determined from a valuation range obtained through the sales
marketing process, through discussion with potential buyers and review of internal forecasts. Management do not expect the final amount
realised to be materially different from this. They are categorised as level 3 non-recurring fair value measurements. The fair value
measurement is based on the above items’ highest and best uses, which do not differ from their actual use.
At 31 December 2022, the expected loss provision for receivables in assets held for sale as follows:
2022
Trade receivable
Other receivables (note 17)
Receivables: non-current (note 13)
- Due from cooperatives under Plasma scheme
2021
Trade receivable
Other receivables (note 17)
Receivables: non-current (note 13)
- Due from cooperatives under Plasma scheme
Annual Report 2022 | Anglo-Eastern Plantations Plc
Gross carrying
amount
$000
188
31
12,020
12,239
Gross carrying
amount
$000
12
23
12,136
12,171
Loss
provision
$000
-
-
(7,892)
(7,892)
Loss
provision
$000
-
-
(8,798)
(8,798)
Net carrying
amount
$000
188
31
4,128
4,347
Net carrying
amount
$000
12
23
3,338
3,373
123
Notes to the Consolidated Financial Statements
10 Earnings per ordinary share (“EPS”)
Total operations
Profit for the year attributable to owners of the Company before BA movement
BA movement
Earnings used in basic and diluted EPS
Continuing operations
Profit for the year attributable to owners of the Company before BA movement
BA movement
Earnings used in basic and diluted EPS
Discontinued operations
Loss for the year attributable to owners of the Company before BA movement
BA movement
Earnings used in basic and diluted EPS
Weighted average number of shares in issue in the year
- used in basic EPS
- dilutive effect of outstanding share options
- used in diluted EPS
Total operations
- Basic and diluted EPS before BA movement
- Basic and diluted EPS after BA movement
Continuing operations
- Basic and diluted EPS before BA movement
- Basic and diluted EPS after BA movement
Discontinued operations
- Basic and diluted EPS before BA movement
- Basic and diluted EPS after BA movement
11 Dividends
Paid during the year
Final dividend of 5.0cts per ordinary share for the year ended 31 December 2021
(2020: 1.0cts)
Proposed final dividend of 25.0cts per ordinary share for the year ended 31 December 2022
(2021: 5.0cts)
2022
$000
83,548
(3,904)
79,644
87,937
(3,772)
84,165
(4,389)
(132)
(4,521)
Number
‘000
39,636
-
39,636
210.79cts
200.94cts
221.86cts
212.34cts
(11.07)cts
(11.41)cts
2022
$000
1,982
9,909
2021
$000
65,485
2,856
68,341
93,245
2,809
96,054
(27,760)
47
(27,713)
Number
‘000
39,636
-
39,636
165.21cts
172.42cts
235.25cts
242.34cts
(70.04)cts
(69.92)cts
2021
$000
396
1,982
The proposed dividend for 2022 is subject to shareholders’ approval at the forthcoming annual general meeting and has not been included as
a liability in these financial statements.
Annual Report 2022 | Anglo-Eastern Plantations Plc
124
Notes to the Consolidated Financial Statements
-
-
0
1
2
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Cost
At 1 January 2021
Exchange translations
Reclassification
Additions
Development costs capitalised
Disposal / Written off
Transfer to assets held for sale (note 9)
At 31 December 2021
Exchange translations
Reclassification
Additions
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Disposals / Written off
At 31 December 2022
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Accumulated depreciation and impairment
At 1 January 2021
Exchange translations
Charge for the year
(Reversal of impairment) / Impairment losses
Disposal / Written off
Transfer to assets held for sale (note 9)
At 31 December 2021
Cost
Exchange translations
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Reclassification
Exchange translations
Charge for the year
Reclassification
Impairment losses
Additions
u
Disposal / Written off
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Development costs capitalised
At 31 December 2022
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Exchange translations
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Accumulated depreciation and impairment
At 1 January 2021
Exchange translations
Charge for the year
(Reversal of impairment) / Impairment losses
Disposal / Written off
Transfer to assets held for sale (note 9)
At 31 December 2021
Exchange translations
Reclassification
Charge for the year
Impairment losses
Disposal / Written off
At 31 December 2022
)
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Annual Report 2022 | Anglo-Eastern Plantations Plc
-
-
Annual Report 2022 | Anglo-Eastern Plantations Plc
)
5
4
2
,
2
(
2
7
9
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Plantations
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6
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(
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-
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219,735
(2,753)
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(31,888)
193,866
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(697)
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(1,313)
Plantations
(19,225)
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(7,002)
219,735
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Leasehold
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(957)
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3,746
(240)
61,272
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118
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185
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52,485
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Buildings
(1,782)
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25,746
(2,522)
64,883
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3,107
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(164)
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26,167
(208)
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40,427
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35,117
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31,095
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0
2
50,131
r
e
47,908
b
m
43,905
e
c
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D
1
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t
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e
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r
i
a
p
m
I
)
4
7
6
(
6
0
6
,
5
7
3,518
(108)
125
1,168
-
(957)
3,746
(240)
-
118
185
-
3,809
f
f
o
n
e
t
t
i
r
2
2
0
2
57,754
r
e
48,739
b
m
W
45,994
e
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D
1
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/
l
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r
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C
i
2
5
7
,
8
1
1
0
4
8
,
9
0
1
24,456
(296)
3,523
-
(155)
(1,782)
25,746
(2,522)
-
3,107
-
(164)
26,167
1
2
0
2
2
2
0
2
40,427
r
r
e
e
35,117
b
b
m
m
31,095
e
e
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c
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1
1
3
3
.
0
2
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-
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t
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t
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0
0
0
,
4
7
2
4
,
0
4
4
5
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,
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5
1
3
1
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5
6
5
2
,
7
2
1
0
2
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2
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b
m
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1
3
$000
1,405
(30)
592
(5)
1,962
(163)
210
(83)
1,926
-
-
-
-
-
1,091
(24)
82
-
-
-
-
-
-
$000
1,144
(84)
1,405
-
(30)
108
592
(80)
1,088
(5)
1,962
314
(163)
818
-
838
210
-
(83)
1,926
1,091
(24)
82
(5)
-
-
1,144
(84)
108
-
-
(80)
1,088
314
818
838
Total
$000
445,592
(5,657)
-
15,982
10,456
(3,790)
(51,236)
411,347
(39,101)
-
23,815
10,455
(2,268)
164,761
(2,245)
18,972
(4,136)
(2,726)
Total
(23,811)
$000
150,815
(14,208)
445,592
-
(5,657)
16,724
-
617
15,982
(2,114)
10,456
151,834
(3,790)
(51,236)
411,347
280,831
(39,101)
260,532
252,414
23,815
-
10,455
(2,268)
404,248
164,761
(2,245)
18,972
(4,136)
(2,726)
(23,811)
150,815
(14,208)
-
16,724
617
(2,114)
151,834
642
7
(2,909)
8,095
(127)
5,708
(1,264)
(2,191)
14,733
$000
642
(2,909)
8,095
(127)
5,708
642
(1,264)
5,708
(2,191)
16,986
14,733
-
-
-
-
-
-
-
-
-
-
-
-
-
7
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
642
5,708
16,986
280,831
260,532
252,414
841
(15)
133
959
(76)
-
-
-
-
-
-
-
-
534
(11)
153
133
(70)
841
-
(15)
144
133
883
959
307
(76)
150
-
-
-
-
-
-
-
-
-
-
-
534
(11)
153
133
809
(70)
144
-
-
-
-
-
883
307
150
-
883
16,986
Estate plant,
equipment & vehicle
$000
Office plant,
equipment & vehicle
Right-of-use
assets*
$000
Construction
in progress
$000
883
16,986
404,248
Office plant,
equipment & vehicle
(5)
Right-of-use
-
-
assets*
$000
809
Construction
in progress
18,034
(242)
19
1,041
-
(814)
(2,191)
15,847
(1,500)
31
2,397
-
(666)
16,109
5
2
1
14,034
(191)
1,309
-
Estate plant,
(798)
equipment & vehicle
(1,847)
$000
12,507
(1,144)
18,034
31
(242)
1,146
19
432
1,041
(619)
-
12,353
(814)
(2,191)
15,847
4,000
(1,500)
3,340
31
3,756
2,397
-
(666)
16,109
125
14,034
(191)
1,309
-
(798)
(1,847)
12,507
(1,144)
31
1,146
432
(619)
12,353
4,000
3,340
3,756
125
c
l
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t
a
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A
|
2
2
0
2
t
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o
p
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u
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A
s
t
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m
e
t
a
t
S
i
l
a
i
c
n
a
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F
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t
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o
N
Notes to the Consolidated Financial Statements
12 Property, plant and equipment - continued
The average capitalisation rate was 0% (2021: 0%) as there was no borrowing cost in 2022 and 2021. The estates included $nil (2021: $nil)
of interest and $1,198,000 (2021: $1,966,000) of overheads capitalised during the year in respect of expenditure on estates under development.
The Indonesian authorities have granted certain land exploitation rights and operating permits for the estates. In the case of established estates
in North Sumatera, these rights and permits expire between 2023 and 2056 with rights of renewal thereafter. As of estates in Bengkulu land
titles were issued between 1994 and 2016 and the titles expire between 2028 and 2051 with rights of renewal thereafter for two consecutive
periods of 25 and 35 years respectively. In Riau, land titles were issued in 2003 and expire in 2033 with rights of renewal thereafter. In
Kalimantan, land titles were issued between 2015 and 2020 and expire between 2049 and 2054 with rights of renewal thereafter. In Bangka,
land titles were issued in 2018 and expire in 2053. The rights and permits for South Sumatera plantations were renewed in 2020. Application
to obtain the land title is temporary stopped due to the Group’s intention to dispose the South Sumatera operations.
Subject to compliance with the laws and regulations of Indonesia, land rights are usually renewed. The cost of renewing the land rights is not
significant. On the basis that the Group has an indefinite right to renew, leasehold land is not depreciated except leasehold land in Malaysia.
The land title of the estate in Malaysia is a long-term lease expiring in 2084.
An impairment loss of $432,000 (2021: $nil) related to estate plant, equipment and vehicle was provided in 2022 as the recoverable amounts
based on its value-in-use were lower than the carrying amounts and the reason of acquisition of the plant and equipment was for corporate
social responsibility purposes. The total value of the Group’s right-of-use assets carried at value in use was lower than original cost by $305,000
(2021: $322,000). The impairment of right-of-use assets was recognised at $nil (2021: $133,000) due to no future economic benefits.
Impairment for land and plantations is measured by comparing its carrying amount with its recoverable amount, which is the higher of the fair
value less cost to sell and its value in use. The impairment assessment is performed against the combined cost of land and plantations for
each estate which represents the cash generating unit ("CGU"). Recoverable amount is, in most cases, based on value in use calculations as,
due to the nature of the cashflows, this will be higher than fair value less costs to sell. Where this has been determined not to be the case, fair
value less costs to sell have also been considered.
In 2022, an impairment loss of $185,000 has been recognised against one CGU due to additional expenditure recognised in the year above
its recoverable amount. The reversal of impairment loss of $5,437,000 recognised in 2021 was primarily due to the increase in CPO price. The
total value of the Group's land and plantations for continuing operations which is carried at its recoverable amount is $41,158,000 (2021:
$42,803,000).
In 2021, the plantations cost of $12,663,000 and land cost of $10,006,000 had been transferred to assets held for sale, the details are disclosed
in note 9.
The value in use, computed by the professional valuer MBPRU using a discounted cash flow (“DCF”) model, is the net present value of the
projected future cash flows over the expected 20-year economic life of the asset discounted at 15.4% (2021: 14.8%). Projected future cash
flows are calculated based on historical data, industry performance, economic conditions and any other readily available information including
the impact of climate change. The compliance with changing regulations, changes in buyer preferences, development of new products and
use of lower emission sources of energy will affect the FFB production, CPO price and its growth. Heavy rainfall & flooding, droughts and fires
will have an effect on company specific risk within the calculation of our discount rate as well as potential impacts on the ability of our plants to
produce FFB. Pests & disease will impact the upkeeping cost.
The sensitivity analysis below has been performed to show the reasonably possible changes in the key assumptions which would have a
material impact on the impairment losses:
CPO CIF-Rotterdam price - decrease of 18%
Pre-tax discount rate - increase by 600 bps
Inflation rate - increase by 400 bps
CPO CIF-Rotterdam price - decrease of 8%
Pre-tax discount rate - increase by 300 bps
Inflation rate - increase by 200 bps
2022
Assumption
applied
$1,200/mt
15.37%
2.81%
2021
Assumption
applied
Increase in
impairment
$000
5,657
6,082
6,330
Increase in
impairment
$000
$1,000/mt
14.76%
2.73%
1,325
1,771
1,152
Annual Report 2022 | Anglo-Eastern Plantations Plc
126
Notes to the Consolidated Financial Statements
13 Receivables: non-current
Due from non-controlling interests
Due from cooperatives under Plasma scheme
Transfer to assets held for sale (note 9)
2022
Book value
$000
1,549
17,414
18,963
-
18,963
Fair value
$000
797
11,729
12,526
-
12,526
2021
Book value
$000
Fair value
$000
5,459
19,879
25,338
(3,338)
22,000
3,042
13,122
16,164
(2,079)
14,085
The non-controlling parties in PT Sawit Graha Manunggal and PT Kahayan Agro Plantation have acquired their interests on deferred terms
(see note 27, Credit risk).
Plasma scheme is an initiative by the Indonesian Government that mandated plantation owners to allocate a percentage of their land acquired
to the surrounding community and to further provide financial and technical assistance to cultivate oil palm on that land to improve the income
and welfare of the community or cooperatives. During the year, certain subsidiary companies have funded plasma with a cumulative gross
amount before ECL for $17,489,000 (2021: $16,612,000) which is recoverable from the cooperatives, the details with ECL are disclosed in
note 9 and note 17.
The fair values disclosed above are for disclosure purposes and all non-current receivables are classified as Level 3 in the fair value hierarchy.
The valuation techniques and significant unobservable inputs used in determining the fair value measurement of non-current receivables, as
well as the inter-relationship between key unobservable inputs and fair value, are set out in the table below:
Item
Valuation approach
Inputs used
Due from non-controlling
interests
Due
under Plasma scheme
from cooperatives
Based on cash flows discounted using
current lending rate of 6% (2021: 6%).
Based on cash flows discounted using
an estimated current lending rate of
8.50% (2021: 7.00%).
Discount rate
Discount rate
Inter-relationship
unobservable inputs and fair value
between
key
The higher the discount rate, the lower the
fair value.
The higher the discount rate, the lower the
fair value.
14 Deferred tax
The movement on the deferred tax account as shown below:
At 1 January
Recognised in income statement from continuing operations
Recognised in other comprehensive income
Transfer to assets held for sale (note 9)
Exchange differences
At 31 December
2022
$000
2,994
(1,727)
(41)
-
(199)
1,027
2021
$000
13,607
(7,005)
(306)
(3,124)
(178)
2,994
The most significant movement in deferred tax was due to the utilisation of some of the losses against taxable profits during the year.
Annual Report 2022 | Anglo-Eastern Plantations Plc
127
Notes to the Consolidated Financial Statements
14 Deferred tax - continued
The deferred tax asset and liability, together with the amounts recognised in income statement and other comprehensive income are detailed
as follows:
2022
Impairment of land
Retirement benefits
BA movement
Unutilised tax losses
Unremitted earnings
Other temporary differences
Tax assets / (liabilities)
Set off of tax
Net tax assets / (liabilities)
2021
Impairment of land
Retirement benefits
BA movement
Unutilised tax losses
Unremitted earnings
Other temporary differences
Tax assets / (liabilities)
Set off of tax
Net tax assets / (liabilities)
Asset
$000
164
1,495
-
1,318
-
-
2,977
(1,145)
1,832
139
2,304
-
3,713
-
-
6,156
(1,832)
4,324
Liability
$000
-
-
(1,356)
-
(331)
(263)
(1,950)
1,145
(805)
-
-
(2,819)
-
(132)
(211)
(3,162)
1,832
(1,330)
Net
$000
164
1,495
(1,356)
1,318
(331)
(263)
1,027
-
1,027
139
2,304
(2,819)
3,713
(132)
(211)
2,994
-
2,994
(Charged)/
credited to
income
statement
$000
(Charged)/
credited
to equity
$000
41
(591)
1,276
(2,177)
-
(276)
(1,727)
-
(1,727)
100
(78)
(957)
(4,303)
-
158
(5,080)
-
(5,080)
2022
$000
-
(41)
-
-
-
-
(41)
-
(41)
-
(280)
-
-
-
-
(280)
-
(280)
2021
$000
A deferred tax asset has not been recognised for the following items:
Unutilised tax losses
19,995
16,780
The Group had recognised tax assets arising from the unutilised tax losses of certain subsidiaries as the Group believes that the tax assets of
these subsidiaries can be realised in the future periods based on their budget, as their respective plantation assets becoming more mature
and historically resulting in the companies becoming profitable. However, the Group does not recognise the tax losses in certain companies
within the Group as tax assets in UK and Malaysia as the future recoverability of losses of these companies cannot be certain and insufficient
forecast future taxable profits. The time limit on utilisation of tax losses is subject to the tax laws in various countries. As of 31 December 2022,
the relevant time limits are 5 years in Indonesia, 7 years in Malaysia and unlimited in UK. At 31 December 2022, all unutilised tax losses were
recognised in Indonesia. The unutilised tax losses will expire as per below:
Year
2023
2025
2027
$000
587
388
343
1,318
At the balance sheet date, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which
deferred tax liabilities have not been recognised was $834,433,000 (2021: $750,462,000). No liability has been recognised in respect of these
differences because either the Group is in a position to control the timing of the reversal of the temporary differences and does not expect such
a reversal to occur in the foreseeable future, or such a reversal would not give rise to an additional tax liability. The deferred tax liability on
unremitted earnings recognised at the balance sheet date was related to the estimated dividend declared for 2022 by the subsidiaries.
Annual Report 2022 | Anglo-Eastern Plantations Plc
128
Notes to the Consolidated Financial Statements
15 Inventories
Estate and mill consumables
Processed produce for sale
Transfer to assets held for sale (note 9)
16 Biological assets
At 1 January
Fair value (loss) / gain recognised in the income statement for continuing operations
Fair value gain recognised in the income statement for discontinued operations
Transfer to assets held for sale (note 9)
Exchange translations
At 31 December
2022
$000
10,719
8,871
19,590
-
19,590
2022
$000
12,803
(5,792)
-
-
(850)
6,161
2021
$000
8,433
6,612
15,045
(729)
14,316
2021
$000
8,783
4,349
64
(303)
(90)
12,803
The valuation of the unharvested FFB was carried out internally for each plantation of the Group. It involved an estimation of the weight of
unharvested FFB at balance sheet date multiplied by the sum of average FFB selling price less average harvesting cost of the last month prior
to the balance sheet date. The weight was derived from the computation of the percentage of growth based on the data extracted from the
research reference "The Reflection of Moisture Content on Palm Oil Development during the Ripening Process of Fresh Fruits" multiplied with
the estimated FFB harvested one month after the balance sheet date. Climate change on the weather will impact the levels and quality of
production of FFB, so this has been taken into consideration when determining the fair value of biological assets.
The fair value of biological assets is classified as Level 3 in the fair value hierarchy.
The valuation techniques and significant unobservable inputs used in determining the fair value measurement of biological assets, as well as
the inter-relationship between key unobservable inputs and fair value, are set out in the table below:
Item
Valuation approach
Inputs used
Inter-relationship between key unobservable inputs
and fair value
-
Biological assets
Unharvested produce
Based on FFB weight
multiplied by the sum of FFB
selling price less harvesting
cost
FFB weight
The higher the weight, the higher the fair value
FFB selling price
The higher the selling price, the higher the fair value
Harvesting cost
The higher the harvesting cost, the lower the fair value
The key assumptions are considered to be FFB weight, selling price less harvesting costs and FFB production and a decrease of 1% in any of
these would result in an $62,000 decrease in the valuation.
17 Trade and other receivables
Trade receivables
Other receivables
Prepayments and accrued income
Transfer to assets held for sale (note 9)
2022
$000
461
1,750
1,257
3,468
-
3,468
2021
$000
1,308
1,457
2,485
5,250
(68)
5,182
The carrying amount of trade and other receivables classified as amortised cost approximates fair value.
Annual Report 2022 | Anglo-Eastern Plantations Plc
129
Notes to the Consolidated Financial Statements
17 Trade and other receivables - continued
Trade receivables
The Group applies the IFRS 9 simplified approach to measure ECL using a lifetime ECL provision for trade receivables. To measure ECL on
a collective basis, trade receivables are grouped based on similar credit risk and age.
The expected loss rate is based on a combination of the Group’s historical credit losses experienced over the 5-year period prior to the year
end and forward-looking information on macroeconomic factors affecting the Group’s customers. The ECL has been calculated at 1% on trade
receivables balances.
Other receivables
The Group assesses the ECL associated with its debt instruments carried at amortised cost on a forward-looking basis using the three stage
approach. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
The Group considers the probability of default upon initial recognition of an asset and whether there has been significant increase in credit risk
on an on-going basis at each reporting date. To assess whether there is a significant increase in credit risk, the Group compares the risk of
default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. The Group considers available,
reasonable and supportable forward-looking information, such as:
-
-
-
internal credit rating;
external credit rating (as far as available);
actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant
change to the debtor’s ability to meet its obligation;
significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit
enhancements; and
significant changes in the expected performance or behaviour of the debtor, including changes in the payment status of the debtor.
-
-
There has not been a significant increase in credit risk since initial recognition on any of the group’s financial assets therefore 12-month ECL
have continued to be recognised on all balances other than trade receivables which are discussed above.
Due from cooperatives under Plasma scheme
The Group assesses the ECL on amounts due from cooperatives under Plasma scheme by considering various probability weighted outcomes.
The three possible outcomes are considered to be:
-
-
-
recovery is limited to the value of the land and bearer plants on which the plantation is situated;
recovery is limited to the future cashflows of the cooperative, being the FFB revenue less development costs; and
recovery in full via bank financing obtained by the cooperative.
Movements on the Group’s loss provision on current and non-current other receivables and financial guarantee contracts are as follows:
At 1 January
Loss provision during the year
Written off during the year
Transfer to assets held for sale (note 9)
Exchange difference
At 31 December
2022
$000
180
1,665
(215)
-
(8)
1,622
At 31 December 2022, the expected loss provision for receivables and financial guarantee contracts is as follows:
2022
Trade receivable
Other receivables (note 17)
Receivables: non-current (note 13)
- Due from non-controlling interests
- Due from cooperatives under Plasma scheme
Financial guarantee contracts (note 26)
Annual Report 2022 | Anglo-Eastern Plantations Plc
Gross carrying
amount
$000
466
1,756
3,063
17,489
22,774
-
22,774
Loss
provision
$000
(5)
(6)
(1,514)
(75)
(1,600)
(22)
(1,622)
2021
$000
8,011
1,054
-
(8,798)
(87)
180
Net carrying
amount
$000
461
1,750
1,549
17,414
21,174
(22)
21,152
130
Notes to the Consolidated Financial Statements
17 Trade and other receivables - continued
2021
Trade receivables
Other receivables (note 17)
Receivables: non-current (note 13)
- Due from non-controlling interests
- Due from cooperatives under Plasma scheme
Financial guarantee contracts (note 26)
Gross carrying
amount
$000
Loss
provision
$000
Net carrying
amount
$000
1,301
1,448
5,514
16,612
24,875
-
24,875
18 Notes supporting statement of cash flows
Cash and cash equivalents for purposes of the statement of cash flows comprised:
Cash at bank available on demand
Short-term deposits
Cash in hand
As reported in statement of financial position
Short-term investments
The short-term investments refer to the deposits with a licensed bank with maturity of over three months.
Significant non-cash transactions from investing activities are as follows:
Property, plant and equipment purchased but not yet paid at year end
Repayment of amounts due from cooperatives under the plasma scheme through the purchase
of FFB
Non-cash transactions from financing activities are shown in the reconciliation of liabilities from financing transactions as follows:
At 1 January 2022
Cash Flows
Non-cash flows
- Effect of foreign exchange
- New lease
- Lease liabilities classified as non-current at 31 December 2021
becoming current during 2022
- Interest accruing during the year
- Write off
Non-current
lease
liabilities
$000
Current
lease
liabilities
$000
(110)
-
6
-
73
-
-
(31)
(240)
231
20
-
(73)
(11)
-
(73)
(5)
(14)
(55)
(71)
(145)
(35)
(180)
2022
$000
47,658
173,802
16
221,476
55,566
277,042
2022
$000
466
7,401
1,296
1,434
5,459
16,541
24,730
(35)
24,695
2021
$000
43,464
174,766
19
218,249
1,439
219,688
2021
$000
222
6,374
Total
$000
(350)
231
26
-
-
(11)
-
(104)
Annual Report 2022 | Anglo-Eastern Plantations Plc
131
Notes to the Consolidated Financial Statements
18 Notes supporting statement of cash flows - continued
At 1 January 2021
Cash Flows
Non-cash flows
- Effect of foreign exchange
- New lease
- Lease liabilities classified as non-current at 31 December 2020 becoming
current during 2021
- Interest accruing during the year
- Write off
19 Trade and other payables
Trade payables
Other payables
Advance receipts
Accruals
Non-current
lease
liabilities
$000
Current
lease
liabilities
$000
(217)
167
4
(110)
46
-
-
(110)
(236)
85
4
(113)
(46)
(24)
90
(240)
2022
$000
11,487
3,321
9,424
9,734
33,966
Total
$000
(453)
252
8
(223)
-
(24)
90
(350)
2021
$000
8,821
1,305
10,237
12,170
32,533
The carrying amount of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value. Advance
receipts from customers are expected to be recognised in full as revenue in the subsequent year. The advance receipts at 31 December 2021
have been recognised in revenue in the current period.
20 Leases
Lease liabilities analysed as:
Non-current
Current
The weighted average incremental borrowing rate per annum was 5.5% (2021: 5.5%).
Maturity analysis for the lease liabilities has been given in note 27.
Amounts recognised in income statement:
Depreciation expense on right-of-use assets (note 12)
Interest expense on lease liabilities
Expense relating to short-term leases
Expense relating to leases of low value assets
2022
$000
(31)
(73)
(104)
2022
$000
(144)
(12)
(352)
(4)
(512)
2021
$000
(110)
(240)
(350)
2021
$000
(153)
(24)
(353)
(6)
(536)
At 31 December 2022, the Group was committed to $0.01 million (2021: $0.01 million) for short-term leases.
All the leases are fixed payments. The total cash outflow for leases amount to $0.59 million (2021: $0.62 million).
The Group leases a piece of land and office under the right-of-use assets. The remaining lease term is between 1.4 years. (2021: 3 to 4 years).
On expiry the Group has the options to renew based on mutually agreed future rental. The right-of-use assets is classified as part of property,
plant and equipment in note 12.
Annual Report 2022 | Anglo-Eastern Plantations Plc
132
Notes to the Consolidated Financial Statements
20 Leases - continued
Right-of-Use assets
At 1 January 2022
Additions
Amortisation
Impairment losses
Effect of foreign exchange
At 31 December 2022
At 1 January 2021
Additions
Amortisation
Impairment losses
Effect of foreign exchange
At 31 December 2021
Lease liabilities
At 1 January 2022
Additions
Interest expense
Lease payments
Effect of foreign exchange
At 31 December 2022
At 1 January 2021
Additions
Interest expense
Lease payments
Effect of foreign exchange
At 31 December 2021
Land
$000
Building
$000
-
-
-
-
-
-
Land
$000
-
133
-
(133)
-
-
Land
$000
(183)
-
(8)
76
11
(104)
Land
$000
(126)
(133)
(9)
81
4
(183)
150
-
(144)
-
(6)
-
Building
$000
307
-
(153)
-
(4)
150
Building
$000
(167)
-
(4)
155
16
-
Building
$000
(327)
-
(15)
171
4
(167)
Total
$000
150
-
(144)
-
(6)
-
Total
$000
307
133
(153)
(133)
(4)
150
Total
$000
(350)
-
(12)
231
27
(104)
Total
$000
(453)
(133)
(24)
252
8
(350)
The tables above do not include the leasehold land which is also classified as a right of use asset as this information is already presented in
note 12.
Annual Report 2022 | Anglo-Eastern Plantations Plc
133
Notes to the Consolidated Financial Statements
21 Retirement benefits
The Group provides Post-Employment Benefit plans to its employees in Indonesia in accordance with Job Creation Law No.11/2020,
Government Regulation No.35/2021 effective since February 2021 and Collective Labour Agreements. These are defined benefit plans and
provide lump sum benefits to employees on retirement, death, disability and voluntary resignation. There is no requirement for the Group to
advance fund these benefits.
The Group has set up a separate fund with PT Asuransi Allianz Life Indonesia to fund the Post-Employment Benefit plan obligation for Staff
employees. The assets in the fund can only be used to pay the employees’ benefits.
Defined contribution plan managed by Dana Pension Lembaga Keuangan AIA Financial (“DPLK AIAF”) and allocated to the individual
participants. From 2020 onwards, these employees will receive the higher of the benefit from DPLK AIAF and the Post-Employment Benefit
plan. The DPLK AIAF plan covers a smaller proportion of the overall Post-Employment Benefit obligation.
The Group provides other long-term employee benefits in the form of Long Service Awards for Staff and Non-Staff employees in Indonesia.
The Long Service Awards are for amounts of up to 2 months of basic salary, paid on completion of 10 or 20 years’ continuous service (Staff)
and on completion of 25, 30, 35, and 40 years’ continuous service (Non-Staff). These benefits are unfunded.
The defined benefit plans are valued by an actuary at the end of each financial year. The major assumptions used by the actuary were:
Rate of increase in wages
Discount rate
Mortality rate*
Disability rate
Service cost
Current service cost
Past service cost
Adjustment due to change in attribution method
Cost of termination
Net interest expense
Remeasurements on net defined benefit liability
Total employee benefits expense
The reconciliation on the remeasurement of retirement benefit plan as shown below:
Included in other comprehensive income:
Continuing operations
Discontinued operations
Remeasurement of retirement benefit plan, net of tax recognised in other
comprehensive income
Included in other comprehensive income:
Remeasurement of retirement benefit plan
Deferred tax on retirement benefits
Remeasurement of retirement benefit plan, net of tax recognised in other
comprehensive (expenses) / income
2022
2021
8.0%
7.3%
100% TMI4
10% TMI4
8.0%
7.5%
100% TMI4
10% TMI4
2022
$000
1,522
-
(1,556)
780
687
(26)
1,407
2022
$000
147
30
177
225
(48)
177
2021
$000
1,660
(2,121)
-
-
735
(102)
172
2021
$000
995
91
1,086
1,392
(306)
1,086
Annual Report 2022 | Anglo-Eastern Plantations Plc
134
Notes to the Consolidated Financial Statements
21 Retirement benefits - continued
(i) Reconciliation of defined benefit obligation and fair value of scheme assets including discontinued operations
(4,569)
Funded
scheme
$000
Defined benefit obligation
(8,177)
Unfunded
scheme
$000
(12,746)
Total
$000
Fair value of scheme assets
1,247
Funded
scheme
$000
-
Unfunded
scheme
$000
1,247
Total
$000
Net defined scheme liability
(3,322)
Funded
scheme
$000
(8,177)
Unfunded
scheme
$000
(11,499)
Total
$000
Fair value of scheme assets
Net defined scheme liability
Funded
scheme
$000
Unfunded
scheme
$000
Total
$000
Funded
scheme
$000
Unfunded
scheme
$000
Total
$000
(14,617)
1,234
y
t
i
l
i
b
a
i
l
e
m
e
h
c
s
d
e
n
i
f
e
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t
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s
t
e
s
s
a
e
m
e
h
c
s
f
o
e
u
a
v
r
i
a
F
(1,660)
2,121
(822)
102
(259)
822
630
-
1,452
173
505
678
-
-
87
-
87
-
-
(60)
(60)
(14)
-
(14)
5
3
1
5
8
3
9
7
2
)
7
7
1
,
8
(
(9,943)
(1,221)
2,212
(532)
102
561
)
2
2
3
,
3
(
452
180
-
632
54
239
293
)
4
1
(
-
)
4
1
(
7
4
2
,
1
7
4
2
,
1
370
450
-
820
119
266
385
l
a
t
o
T
0
0
0
$
)
3
8
3
,
3
1
(
)
3
4
9
,
9
(
)
0
6
6
,
1
(
1
2
1
,
2
)
5
3
7
(
2
0
1
)
2
7
1
(
2
2
8
0
3
6
)
0
6
(
2
9
3
,
1
)
1
2
2
,
1
(
2
1
2
,
2
)
2
3
5
(
2
0
1
1
6
5
-
0
7
3
0
5
4
0
2
8
9
1
1
6
6
2
(4,674)
)
9
9
4
,
1
1
(
9
5
1
5
0
5
4
6
6
Defined benefit obligation
Unfunded
scheme
$000
Funded
scheme
$000
At 1 January 2021
0
0
0
$
e
m
e
h
c
s
d
e
d
n
u
f
n
U
Service cost - current
Service cost - past
Interest (cost) / income
Remeasurements on net defined benefit liability
)
3
3
7
(
)
3
0
2
(
)
9
3
4
(
)
1
9
(
-
0
0
0
$
2
5
4
d
e
d
n
u
F
e
m
e
h
c
s
Included in income statement
)
0
6
(
0
8
1
2
7
5
(439)
(91)
(290)
-
(820)
9
3
2
0
4
)
0
4
4
,
3
(
4
3
2
,
1
Notes to the Consolidated Financial Statements
-
-
7
8
7
8
-
-
)
0
6
(
)
0
6
(
-
)
4
1
(
)
4
1
(
Remeasurement gain / (loss)
l
-
a
t
o
T
0
0
0
$
Actuarial gain / (loss) from:
Adjustments (experience)
Financial assumptions
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Return on plan assets (exclude interest)
Included in other comprehensive income
0
0
0
$
d
e
d
n
u
f
n
U
e
m
e
h
c
s
21 Retirement benefits - continued
Effect of movements in exchange rates
Benefits paid
Other movements
l
At 31 December 2021
0
0
0
$
d
e
d
n
u
F
e
m
e
h
c
s
4
3
2
,
1
-
-
-
7
8
7
8
-
-
)
0
6
(
)
0
6
(
(i) Reconciliation of defined benefit obligation and fair value of scheme assets including discontinued operations
s
n
o
i
t
a
r
e
p
o
d
e
u
n
i
t
n
o
c
s
d
g
n
d
u
c
n
i
i
i
f
o
e
u
a
v
r
i
a
f
n
o
i
t
a
g
8
7
6
5
8
3
3
9
2
(9,943)
)
6
4
7
,
2
1
(
(1,221)
2,212
(532)
102
561
)
7
7
1
,
8
(
)
9
6
5
,
4
(
370
450
-
820
119
266
385
(14,617)
1,234
(1,660)
2,121
(822)
102
(259)
822
630
-
1,452
173
505
678
-
-
87
-
87
-
-
(60)
(60)
(14)
-
(14)
(8,177)
(12,746)
1,247
4
5
9
3
2
452
180
-
632
54
239
293
s
e
t
a
r
e
g
n
a
h
c
x
e
n
(4,569)
At 1 January 2021
l
a
t
o
T
0
0
0
$
)
7
1
6
,
4
1
(
)
0
6
6
,
1
(
1
2
1
,
2
)
2
2
8
(
2
0
1
)
9
5
2
(
-
2
2
8
0
3
6
2
5
4
,
1
3
7
1
(4,674)
5
0
5
n
o
i
t
a
g
Service cost - current
Service cost - past
Interest (cost) / income
Remeasurements on net defined benefit liability
1
6
5
2
0
1
b
o
i
l
0
7
3
)
3
4
9
,
9
(
)
1
2
2
,
1
(
2
1
2
,
2
)
2
3
5
(
l
Included in income statement
(439)
(91)
(290)
-
(820)
9
1
1
6
6
2
-
0
5
4
0
2
8
0
0
0
$
e
m
e
h
c
s
d
e
d
n
u
f
n
U
t
i
f
e
n
e
b
s
t
e
s
s
a
e
m
e
h
c
s
Remeasurement gain / (loss)
d
e
n
i
f
Actuarial gain / (loss) from:
e
D
Adjustments (experience)
Financial assumptions
e
m
e
h
c
s
d
e
d
n
u
F
)
4
7
6
,
4
(
)
9
3
4
(
0
0
0
$
)
1
9
(
Annual Report 2022 | Anglo-Eastern Plantations Plc
Return on plan assets (exclude interest)
Included in other comprehensive income
l
-
)
0
9
2
(
)
0
2
8
(
-
2
5
4
0
8
1
2
3
6
d
n
a
Effect of movements in exchange rates
Benefits paid
Other movements
y
t
i
l
i
b
a
i
l
t
i
f
e
n
e
b
At 31 December 2021
i
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b
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d
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(
s
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e
s
s
a
l
n
a
p
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o
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t
e
m
o
c
n
i
i
e
v
s
n
e
h
e
r
p
m
o
c
r
e
h
t
o
n
i
d
e
d
u
c
n
l
I
i
s
t
n
e
m
e
v
o
m
f
o
t
c
e
f
f
E
i
d
a
p
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t
i
f
e
n
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s
t
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m
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v
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O
t
1
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b
m
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c
e
D
1
3
t
A
-
-
-
-
-
-
-
-
-
-
-
-
-
1,234
(3,440)
(9,943)
(13,383)
-
-
87
-
87
-
-
(60)
(60)
(14)
-
(14)
Total
$000
(1,660)
2,121
(735)
102
(172)
822
630
(60)
1,392
159
505
664
(1,660)
2,121
(735)
102
(172)
822
630
(60)
1,392
159
505
664
(1,221)
2,212
(532)
102
561
370
450
-
820
119
266
385
(1,221)
2,212
(532)
102
561
370
450
-
820
119
266
385
(439)
(91)
(203)
-
(733)
452
180
(60)
572
40
239
279
(439)
(91)
(203)
-
(733)
452
180
(60)
572
40
239
279
1,234
(3,440)
(9,943)
(13,383)
-
-
87
-
87
-
-
(60)
(60)
(14)
-
(14)
1,247
(3,322)
(8,177)
(11,499)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
135
c
l
P
s
n
o
i
t
a
t
n
a
l
P
n
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e
t
s
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n
A
|
2
2
0
2
t
r
o
p
e
R
l
a
u
n
n
A
Annual Report 2022 | Anglo-Eastern Plantations Plc
135
s
t
n
e
m
e
t
a
t
S
i
l
a
i
c
n
a
n
F
d
e
t
a
d
i
l
o
s
n
o
C
e
h
t
o
t
s
e
t
o
N
Fair value of scheme assets
Net defined scheme liability
Funded
scheme
$000
Unfunded
scheme
$000
Total
$000
Funded
scheme
$000
Unfunded
scheme
$000
Total
$000
Total
$000
(4,569)
(8,177)
(12,746)
1,247
Notes to the Consolidated Financial Statements
21 Retirement benefits - continued
(i) Reconciliation of defined benefit obligation and fair value of scheme assets (continued)
-
l
a
t
o
T
0
0
0
$
)
9
9
4
,
1
1
(
)
2
2
5
,
1
(
)
0
8
7
(
)
7
8
6
(
6
2
6
5
5
,
1
)
7
0
4
,
1
(
y
t
i
l
i
b
a
-
)
7
7
1
,
8
(
)
5
4
1
,
1
(
i
l
d
e
d
n
u
At 1 January 2022
f
n
U
e
m
e
h
c
s
0
0
0
$
)
0
8
7
(
)
7
0
5
(
6
2
2
1
1
,
1
)
4
9
2
,
1
(
e
m
e
h
c
s
d
e
n
Service cost - current
i
f
e
Service cost - past
d
e
t
m
e
Adjustment due to change in attribution
N
e
h
method
c
s
Cost of termination
Interest (cost) / income
Remeasurements on net defined benefit liability
d
e
d
n
u
F
)
2
2
3
,
3
(
)
3
1
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(
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0
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(
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a
t
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4
4
4
2
9
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l
7
4
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5
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(
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4
4
2
(
5
2
2
7
1
3
3
9
3
7
9
0
,
1
7
0
8
,
1
Defined benefit obligation
Unfunded
scheme
$000
Funded
scheme
$000
-
-
6
5
2
3
0
8
4
1
3
7
1
1
,
1
8
2
4
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2
7
1
(
9
8
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2
7
(
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-
(377)
-
)
1
3
(
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8
4
(
444
-
(272)
-
(205)
)
8
4
(
)
8
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(
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9
2
7
1
3
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5
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1
(
7
1
3
(1,145)
-
9
7
0
9
6
1,112
(780)
(507)
26
(1,294)
4
4
1
)
8
3
(
Included in income statement
Notes to the Consolidated Financial Statements
Remeasurement gain / (loss)
s
t
e
s
s
a
Actuarial gain / (loss) from:
e
m
Adjustments (experience)
e
h
c
Financial assumptions
s
21 Retirement benefits - continued
d
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d
n
u
f
n
U
e
m
e
h
c
s
0
0
0
$
-
-
-
428
(172)
-
256
(i) Reconciliation of defined benefit obligation and fair value of scheme assets (continued)
Included in other comprehensive income
Return on plan assets (exclude interest)
89
(72)
-
17
f
o
e
u
a
v
-
-
-
-
-
-
-
l
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-
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0
0
$
d
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d
n
u
F
e
m
e
h
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s
Effect of movements in exchange rates
Employer contribution
Benefits paid
Other movements
l
a
t
o
T
0
0
0
$
At 31 December 2022
At 1 January 2022
)
2
2
5
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1
(
-
6
5
5
,
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)
0
8
7
(
)
9
7
7
(
6
2
)
9
9
4
,
1
(
7
1
5
)
4
4
2
(
7
4
2
,
1
)
6
4
7
,
2
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(
5
3
4
,
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(
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3
4
4
1
429
-
Funded
117
scheme
546
$000
803
Defined benefit obligation
-
Unfunded
314
scheme
1,117
$000
-
-
3
7
2
(4,211)
(4,569)
2
3
2
,
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(8,177)
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d
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)
4
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7
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(
Annual Report 2022 | Anglo-Eastern Plantations Plc
Remeasurement gain / (loss)
(377)
-
6
5
2
-
444
-
(272)
-
(205)
7
1
-
8
2
4
)
2
7
1
(
9
8
)
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(
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3
0
8
-
9
2
4
(1,145)
-
4
1
3
7
1
1
,
1
1,112
(780)
(507)
26
(1,294)
6
4
5
7
1
1
Actuarial gain / (loss) from:
Adjustments (experience)
Financial assumptions
Return on plan assets (exclude interest)
Included in other comprehensive income
i
l
Effect of movements in exchange rates
Employer contribution
Benefits paid
Other movements
b
o
t
i
f
e
n
e
b
t
n
e
r
r
u
c
At 31 December 2022
f
o
n
o
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t
a
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l
i
c
n
o
c
e
R
)
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(
-
t
s
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c
v
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S
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2
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n
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t
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t
s
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v
r
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t
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l
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b
a
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l
t
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f
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e
b
d
e
n
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d
t
e
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u
s
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R
89
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t
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r
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e
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429
c
n
-
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546
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o
c
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c
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e
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p
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e
(
s
t
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t
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m
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l
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t
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s
e
m
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g
t
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s
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l
p
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r
u
t
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R
r
e
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t
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n
i
d
e
d
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n
l
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428
(172)
-
256
803
-
314
1,117
(8,098)
d
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s
t
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s
t
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m
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t
t
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r
e
t
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d
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t
e
m
d
e
u
n
i
t
n
o
c
-
s
t
i
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n
e
b
t
n
e
m
e
r
i
t
e
R
1
2
)
4
7
8
,
0
1
(
)
8
9
0
,
8
(
)
6
7
7
,
2
(
5
3
4
,
1
)
8
9
0
,
8
(
)
1
1
2
,
4
(
2
2
0
2
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e
b
m
e
c
e
D
1
3
t
A
1,247
(3,322)
(8,177)
(11,499)
Net defined scheme liability
803
-
Unfunded
314
scheme
1,117
$000
294
317
Funded
79
scheme
690
$000
(2,776)
(3,322)
(8,098)
(8,177)
(10,874)
(11,499)
(1,145)
(1,522)
-
-
92
92
-
-
-
-
-
-
-
(48)
(48)
(135)
317
(38)
Total
144
$000
1,435
1,247
92
92
-
-
-
-
-
-
-
(48)
(48)
(135)
317
(38)
144
(377)
-
-
-
444
(180)
(113)
89
(72)
(48)
(31)
(377)
-
-
-
444
(180)
(113)
89
(72)
(48)
(31)
294
317
79
690
(1,145)
(1,522)
-
-
1,112
(780)
(507)
26
(1,294)
428
(172)
-
256
1,112
(780)
(507)
26
(1,294)
428
(172)
-
256
803
-
314
1,117
1,556
(780)
(687)
26
(1,407)
517
(244)
(48)
225
1,097
317
393
Total
1,807
$000
1,556
(780)
(687)
26
(1,407)
517
(244)
(48)
225
1,097
317
393
1,807
1,435
(2,776)
(8,098)
(10,874)
-
-
-
-
92
-
92
6
3
1
-
-
(48)
(48)
-
-
-
-
-
-
-
-
-
-
-
-
(135)
Fair value of scheme assets
317
Funded
(38)
scheme
144
$000
-
-
Unfunded
-
scheme
-
$000
(1,522)
-
1,556
(780)
(779)
26
(1,499)
517
(244)
-
273
1,232
-
431
Total
1,663
$000
(12,309)
(12,746)
1,435
1,247
(1,522)
-
1,556
(780)
(779)
26
(1,499)
517
(244)
-
273
1,232
-
431
1,663
-
-
-
-
92
-
92
-
-
(48)
(48)
(135)
317
(38)
144
(12,309)
1,435
136
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
c
l
P
s
n
o
i
t
a
t
n
a
l
P
n
r
e
t
s
a
E
l
-
o
g
n
A
|
2
2
0
2
t
r
o
p
e
R
l
a
u
n
n
A
Annual Report 2022 | Anglo-Eastern Plantations Plc
136
Notes to the Consolidated Financial Statements
21 Retirement benefits - continued
(ii) Disaggregation of defined benefit scheme assets
The fair value of the funded assets is analysed as follows:
Bonds
- Government bonds
- Corporate bonds
Cash / deposits
2022
$000
556
-
556
879
1,435
2021
$000
275
2
277
970
1,247
None of the plan assets are invested in the Group’s own financial instruments, property or other assets used by the Group. All plan assets
invested in bonds which have a quoted market price in an active market.
(iii) Defined benefit obligation - sensitivity analysis
The following table exhibits the sensitivity of the Group’s retirement benefits to the fluctuation in the discount rate, wages and mortality rate:
Discount rate
Growth in wages
Future mortality rate
Reasonably
Possible
Change
(+ / - 1%)
(+ / - 1%)
(+ / - 10%)
Defined benefit obligation
Decrease
Increase
$000
$000
(941)
1,094
64
1,061
(987)
(65)
The weighted average duration of the defined benefit obligation is 8.85 years (2021: 11.10 years).
The total contribution paid into the defined contribution plan in 2022 amounted to $223,000 (2021: $239,000). The Group expects to pay
contributions of $431,000 to the funded plans in 2023. For the unfunded plans, the Group pays the benefits directly to the individuals; the Group
expects to make direct benefit payments of $1,731,000 for defined benefit plan and $230,000 for defined contribution plan in 2023.
22 Share capital and treasury shares
Ordinary shares of 25p each
Beginning and end of year
Treasury shares:
Beginning of year
Share options exercised
End of year
Market value of treasury shares:
Beginning of year (720.0p/share)
End of year (800.0p/share)
Authorised
Number
Issued and
fully paid
Number
Authorised
£000
Issued and
fully paid
£000
Authorised
$000
Issued and
fully paid
$000
60,000,000
39,976,272
15,000
9,994
23,865
15,504
2022
Number
339,900
-
339,900
2021
Number
339,900
-
339,900
Cost
2022
$’000
(1,171)
-
(1,171)
Cost
2021
$’000
(1,171)
-
(1,171)
$’000
3,298
3,274
No treasury share was purchased in 2022 (2021: Nil).
All fully paid ordinary shares have full voting rights, as well as to receive the distribution of dividends and repayment of capital upon winding up
of company.
23 Ultimate controlling shareholder
At 31 December 2022, Genton International Limited (“Genton”), a company registered in Hong Kong, held 20,247,814 (2021: 20,247,814)
shares of the Company representing 51.1% (2021: 51.1%) of the issued share capital of the Company. Together with other deemed interested
parties, Genton‘s shareholding totals 20,551,914 or 51.9%. The ultimate beneficial shareholders of Genton International Limited are vested in
the estates of Madam Lim with the application for probate in progress.
Annual Report 2022 | Anglo-Eastern Plantations Plc
137
Notes to the Consolidated Financial Statements
24 Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed
in this note.
An office premises lease agreement was entered with Infra Sari Sdn Bhd, a company controlled by late Madam Lim Siew Kim. The rental paid
during the year was $339,140 (2021: $352,180). There was no balance outstanding at the year end (2021: Nil).
In 2021, a land lease agreement was entered with Hana Bestari Sdn Bhd, company controlled by late Madam Lim Siew Kim. The rental paid
during the year was $78,405 (2021: $46,325). There was no balance outstanding at the year end.
In 2022, the final dividend paid to Genton International Limited, a company controlled by late Madam Lim Siew Kim, was $1,012,391 for the
year ended 31 December 2021 (2021: $202,478 for the year ended 31 December 2020). The final dividend paid to other companies controlled
by late Madam Lim Siew Kim was $15,205 for the year ended 31 December 2021 (2021: $3,041 for the year ended 31 December 2020). There
was no balance outstanding at the year end (2021: Nil).
25 Reserves
Nature and purpose of each reserve:
Share capital
Share premium
Amount of shares subscribed at nominal value.
Amount subscribed for share capital in excess of nominal value.
Capital redemption reserve
Amounts transferred from share capital on redemption of issued shares.
Treasury shares
Cost of own shares held in treasury.
Revaluation reserves
Gains/losses arising on the revaluation of the Group's property, net of tax.
Exchange reserves
Gains/losses arising from translating the net assets of overseas operations into US Dollar.
Retained earnings
Cumulative net gains and losses recognised in the consolidated income statement.
26 Guarantees and other financial commitments
Capital commitments at 31 December
Contracted but not provided - normal estate operations
Contracted but not provided – mill development
Authorised but not contracted - plantation and mill development
2022
$000
1,310
16,058
28,558
2021
$000
979
22,352
26,517
A subsidiary company, PT Sawit Graha Manunggal (“SGM”) has provided a corporate guarantee to Koperasi Bartim Sawit Sejahtera (“KBSS”),
a party under Plasma scheme as disclosed in note 13, in relation to a loan taken by KBSS from PT Bank Mandiri (Persero) Tbk. of Rp226.02
billion ($14.4million) (2021: Rp226.02 billion, $15.8 million). The corporate guarantee remains until the loan is fully settled by 23 December
2027. The HGU (land usage right) that belongs to the Plasma scheme is currently held under SGM’s master title. An application to separate
the HGU was submitted to the Land Office and the land and its plantation with a total carrying amount of $11.1 million as at 31 December 2022
(31 December 2021: $11.7 million) will be pledged to the bank as security once the title separation approval is obtained. In addition, the terms
and conditions of the loan agreement also require KBSS to sell all its FFB produce to SGM and the plantation estate is to be managed by
SGM. In view of these, the Group exposure to this contingent liability is minimised.
On 3 February 2017, a subsidiary company, PT Alno Agro Utama and Koperasi Perkebunan Plasma Maju Sejahtera (“KPPM”) signed a
Refinancing Agreement with PT Bank Syariah Mandiri ("BSM") to fund its plasma development. The Agreement provides a loan of Rp 8.75
billion ($0.6 million) (2021: Rp8.75 billion, $0.6 million), with 10 (Ten) years maturity period effective from 24 July 2017 with an interest rate of
13.25% per annum and in 2021 decreased to 12.5% per annum. This loan is collateralized by 125.4 hectares of KPPM’s land located in Desa
Serami Baru, Kecamatan Malin Deman, Kabupaten Mukomuko, Bengkulu and its plantation with a carrying amount of $0.6 million as at 31
December 2022 (31 December 2021: $0.7 million) as security under the agreement while the Company provides corporate guarantee
amounting to Rp 8.75 billion ($0.6 million).
The Group’s loss provision on these financial guarantee contracts was $22,000 (2021: $35,000). The details of the ECL were disclosed in note
17.
Annual Report 2022 | Anglo-Eastern Plantations Plc
138
Notes to the Consolidated Financial Statements
27 Disclosure of financial instruments and other risks
The Group's principal financial instruments comprised cash, short and long-term bank loans, trade receivables excluding prepayments and
payables excluding advance receipts and receivables from local partners in respect of their investments.
The Group’s accounting classification of each class of financial asset and liability at 31 December 2022 and 2021 were:
2022
Non-current receivables
Trade and other receivables
Short-term investments
Cash and cash equivalent
Trade and other payables
2021
Non-current receivables
Trade and other receivables
Short-term investments
Cash and cash equivalent
Trade and other payables
Financial
assets at
amortised cost
$000
Financial
liabilities at
amortised cost
$000
Total carrying
value
$000
18,963
2,211
55,566
221,476
-
298,216
-
-
-
-
(24,542)
(24,542)
18,963
2,211
55,566
221,476
(24,542)
273,674
Financial assets
at amortised cost
$000
Financial
liabilities at
amortised cost
$000
Total carrying
value
$000
22,000
2,730
1,439
218,249
-
244,418
-
-
-
-
(22,296)
(22,296)
22,000
2,730
1,439
218,249
(22,296)
222,122
Financial instruments not measured at fair value
Financial instruments not measured at fair value include cash and cash equivalents, trade and other receivables, trade and other payables,
borrowings due within one year and non-current receivables.
Due to their short-term nature, the carrying value of cash and cash equivalents, trade and other receivables, trade and other payables
approximates their fair value. The non-current receivables were measured at cost less ECL however disclosure of fair value has been given in
note 13 for comparison purposes.
Please refer to the applicable notes for details of the fair value hierarchy, valuation techniques, and significant unobservable inputs related to
determining the fair value of the following items:
- Non-current receivables (note 13); and
The principal financial risks to which the Group is exposed are:
- commodity selling price changes; and
- exchange movements;
which, in turn, can affect financial instruments and/or operating performance.
The Company does not hedge any of its risks. Its trade credit risks are low. There are no financial assets or liabilities that are held at fair value
through the profit or loss.
The Board is directly responsible for setting policies in relation to financial risk management and monitors the levels of the main risks through
review of regular operational reports.
Commodity selling prices
The Group does not normally contract to sell produce more than one month ahead.
Currency risk
Most of the Group's operations are in Indonesia. The Company and Group accounts are prepared in US Dollar which is not the functional
currency of the operating subsidiaries. The Group does not hedge its net investment in its overseas subsidiaries and is therefore exposed to a
currency risk on that investment. The historical cost of investment (including intercompany loans) by the parent in its subsidiaries amounted to
$50,746,000 (2021: $52,710,000), while the statement of financial position value of the Group's share of underlying assets at 31 December
2022 amounted to $463,383,000 (2021: $440,030,000).
Annual Report 2022 | Anglo-Eastern Plantations Plc
139
Notes to the Consolidated Financial Statements
27 Disclosure of financial instruments and other risks - continued
Currency risk - continued
All the Group's sales are made in local currency and any trade receivables are therefore denominated in local currency. No hedging is therefore
necessary.
Selling prices of the Group's produce are directly related to the US Dollar denominated world prices. Appreciation of local currencies, therefore,
reduces profits and cash flow of the Indonesian and Malaysian subsidiaries in US Dollar terms and vice versa.
There are no borrowings in the Group and therefore there is no longer any currency risk for the Group in respect of this. The average interest
rate on local currency deposits was 0.88% higher (2021: 2.74% higher) than on US Dollar deposits. The unmatched balance at 31 December
2022 was represented by the $13,142,000 shown in the table below (2021: $13,504,000).
The table below shows the net monetary assets and liabilities of the Group as at 31 December 2022 and 2021 that were not denominated in
the operating or functional currency of the operating unit involved.
Functional currency of Group operation
2022
Rupiah
US Dollar
Ringgit
Total
2021
Rupiah
US Dollar
Ringgit
Total
Net foreign currency assets/(liabilities)
US Dollar
$000
Sterling
$000
12,976
-
166
13,142
12,397
-
1,107
13,504
-
355
-
355
-
996
-
996
Total
$000
12,976
355
166
13,497
12,397
996
1,107
14,500
The following table summarises the sensitivity of the Group’s financial assets and financial liabilities to foreign exchange risk. The impact on
profit before tax and equity if Ringgit or Rupiah strengthen or weaken by 10% against US Dollar:
2022
2021
Carrying
Amount
US$
$000
-10% in
Rp : $ and
RM : $
$000
+10% in
Rp : $ and
RM : $
$000
Carrying
Amount
US$
$000
-10% in
Rp : $ and
RM : $
$000
+10% in
Rp : $ and
RM : $
$000
18,963
2,211
55,566
221,476
(1,583)
(196)
(5,051)
(20,047)
1,935
239
6,174
24,502
22,000
2,730
1,439
218,249
(1,504)
(244)
(131)
(19,695)
1,838
298
160
24,072
(24,542)
2,142
(24,735)
(2,618)
30,232
(22,296)
1,914
(19,660)
(2,339)
24,029
Financial Assets
Non-current receivables
Trade and other receivables
Short-term investments
Cash and cash equivalents
Financial Liabilities
Trade and other payables
Total (decrease) / increase
Liquidity risk
Profitability of new sizable plantations normally requires a period of between six and seven years before cash flow turns positive. Because oil
palms do not begin yielding significantly until four years after planting, this development period and the cash requirement is affected by changes
in commodity prices.
The Group attempts to ensure that it is likely to have either self-generated funds or further loan/equity capital to complete its development plans
and to meet loan repayments. Long-term forecasts are updated twice a year for review by the Board. In the event that falling commodity prices
reduce self-generated funds below expectations and to a level where Group resources may be insufficient, further new planting may be
restricted. Consideration is given to the funds required to bring existing immature plantings to maturity.
The Group’s trade and tax payables are all due for settlement within a year. At 31 December 2022, the Group had no external loans and
facilities.
Annual Report 2022 | Anglo-Eastern Plantations Plc
140
Notes to the Consolidated Financial Statements
27 Disclosure of financial instruments and other risks - continued
Liquidity risk - continued
The following table sets out the undiscounted contractual cashflows of financial liabilities:
Less than
1 year
$000
Between 1
and 2 years
$000
Between 2
and 5 years
$000
More than 5
years
$000
At 31 December 2022
Trade and other payables
Accruals
Lease liabilities
Financial guarantee contracts
provided to Plasma
- loan repayment by Plasma
At 31 December 2021
Trade and other payables
Accruals
Lease liabilities
Financial guarantee contracts provided
to Plasma
- loan repayment by Plasma
(14,808)
(9,734)
(76)
(24,618)
(1,238)
(25,856)
(10,013)
(8,450)
(252)
(18,715)
(1,142)
(19,857)
-
-
(32)
(32)
(677)
(709)
(31)
(135)
(81)
(247)
(1,759)
(2,006)
-
-
-
-
(251)
(251)
(22)
(243)
(34)
(299)
(628)
(927)
Total
$000
(14,808)
(9,734)
(108)
(24,650)
(2,166)
(26,816)
(10,126)
(12,170)
(367)
(22,663)
-
-
-
-
-
-
(60)
(3,342)
-
(3,402)
-
(3,402)
(3,529)
(26,192)
The figures for trade and other payables excludes accruals and advance receipts.
The Group does not face a significant liquidity risk with regard to its financial liabilities.
Interest rate risk
The Group's surplus cash is subject to variable interest rates. The Group had net cash throughout 2022. A 1% change in the deposit interest
rate would not have a significant impact on the Group’s reported results as shown in the table below.
2022
2021
Carrying
amount
$000
-1% in
interest rate
$000
+1% in
interest rate
$000
Carrying
amount
$000
-1% in
interest rate
$000
+1% in
interest rate
$000
55,566
221,476
(811)
(1,904)
(2,715)
300
2,422
2,722
1,439
218,249
(12)
(2,112)
(2,124)
14
2,135
2,149
Financial Assets
Short-term investments
Cash and cash equivalents
Total (decrease) / increase
There is no policy to hedge interest rates, partly because of the net cash position and the net interest income position of the Group.
Annual Report 2022 | Anglo-Eastern Plantations Plc
141
Notes to the Consolidated Financial Statements
27 Disclosure of financial instruments and other risks - continued
Interest rate risk - continued
Interest rate profiles of the Group's financial assets (comprising non-current receivables, trade and other receivables, cash and cash equivalent
and short-term investments) at 31 December were:
2022
Sterling
US Dollar
Rupiah
Ringgit
Total
2021
Sterling
US Dollar
Rupiah
Ringgit
Total
Total
$000
Fixed rate
$000
Variable rate
$000
No interest
$000
658
15,181
278,685
3,692
298,216
996
18,504
220,238
4,680
244,418
-
1,549
-
-
1,549
-
5,459
-
-
5,459
56
9,341
259,439
3,370
272,206
63
9,131
202,442
3,250
214,886
602
4,291
19,246
322
24,461
933
3,914
17,796
1,430
24,073
Long-term receivables before ECL of $3,063,000 (2021: $5,514,000) comprise US Dollar denominated amounts due from non-controlling
interests as described in note 13 on which interest is due at a fixed rate of 6%.
Average US Dollar deposit rate in 2022 was 2.75% (2021: 0.30%) and Rupiah deposit rate was 3.63% (2021: 3.04%).
Interest rate profiles of the Group's financial liabilities (comprising other payables excluding advance receipts) at 31 December were:
2022
Sterling
US Dollar
Rupiah
Ringgit
Total
2021
Sterling
US Dollar
Rupiah
Ringgit
Total
Total
$000
Fixed rate
$000
Variable rate
$000
No interest
$000
-
(841)
(23,500)
(201)
(24,542)
-
(1,110)
(20,864)
(322)
(22,296)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(841)
(23,500)
(201)
(24,542)
-
(1,110)
(20,864)
(322)
(22,296)
Weighted average interest rate on variable rate borrowings was nil in 2022 (2021: nil).
Credit risk
The Group has two types of financial assets that are subject to the ECL model:
•
•
trade receivables for sales of goods and services; and
current and non-current receivables carried at amortised cost.
The Group also has financial guarantee contracts for which the ECL model is also applicable.
While cash and cash equivalents are also subject to the impairment requirements as set out in IFRS 9, there is no impairment loss identified
given the financial strength of the financial institutions in which the Group have a relationship with. Credit risk arises from cash and cash
equivalents and deposits with banks and financial institutions. The Group has taken necessary steps and precautions in minimising the credit
risk by lodging cash and cash equivalents only with reputable licensed banks, and particularly in Indonesia, independently rated banks with a
minimum rating of “A”. The cash and cash equivalents are in US dollars, Rupiah, Ringgit and Sterling according to the requirements of the
Group. The list of the principal banks used by the Group is given on the inside of the back cover of this report.
Annual Report 2022 | Anglo-Eastern Plantations Plc
142
Notes to the Consolidated Financial Statements
27 Disclosure of financial instruments and other risks - continued
Credit risk - continued
The Group use three categories for those receivables which reflect their credit risk and how the loss provision is determined for those categories.
(i)
Trade receivables using the simplified approach
The Group applies the simplified approach under IFRS 9 to measure ECL, which uses a lifetime expected loss provision for all trade
receivables. To measure the expected losses, trade receivables have been grouped based on shared credit risk characteristics and
days past due.
The expected loss rates are based on historical payment profiles of sales and the corresponding historical credit losses experienced
during these periods. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors
(such as palm product prices and crude oil price) affecting the ability of the customers to settle the receivables. The historical loss rates
will be adjusted based on the expected changes in these factors. No significant changes to estimation techniques or assumptions were
made during the reporting period.
In determining the expected loss rates, the Group also takes into consideration the collateral or payments received in advance, as set
out below:
Receivables are generally collected within the credit term and therefore there is minimal exposure to doubtful debts. Upfront payments
are also collected for certain sales made by the Group’s subsidiaries in Indonesia.
The Group’s maximum exposure to credit risk and loss provision recognised as at 31 December 2022 is disclosed in note 17. The ECL
has been calculated at 1% on trade receivables balances while the remaining amount in which no ECL provision was recognised is
deemed to be recoverable, with low probability of default. Default is defined by the management as the non-repayment of the balance.
(ii) Debt instruments at amortised costs other than trade receivables using the three-stage approach
All of the Group’s debt instruments at amortised costs other than trade receivables are considered to have a low credit risk, except
amount due from cooperatives under Plasma scheme are considered to have higher credit risk, as these were considered to be
performing, have low risks of default and historically there were minimal instances where contractual cash flow obligations have not
been met. There has not been a significant increase in credit risk since initial recognition.
The 12-month ECL has been calculated at 1% on the majority of balances (unless it has been considered there to be no ECL), with the
exception of amounts due from cooperatives under Plasma scheme where the ECL is largely calculated, having considered various
probability weighted outcomes, as being the balance of the receivable in excess of the value of the associated land and plantation assets
on which the Plasma land resides which effectively would be returned to the Company if the receivable is not repaid.
The maximum exposure to credit risks for debt instruments at amortised cost other than trade receivables are represented by the carrying
amounts recognised in the statements of financial position.
(iii) Financial guarantee contracts using the three-stage approach
All of the financial guarantee contracts are considered to be performing, have low risks of default and historically there were no instances
where these financial guarantee contracts were called upon by the parties of which the financial guarantee contracts were issued.
Accordingly,12-month ECL have been recognised at 1% on the financial guarantee contracts and disclosed in note 26.
Information regarding other non-current assets and trade and other receivables is disclosed in notes 13 and 17 respectively. Amounts
receivable from local partners before ECL, amounting to $3,063,000 (2021: $5,514,000), in relation to their investments in operating
subsidiaries are secured on those investments and are repayable from their share of dividends from those subsidiaries.
Amounts receivable due from cooperatives under Plasma scheme, as disclosed in note 13, are unsecured and are to be repaid from FFB
supplied by the cooperatives. The provision of ECL for amounts receivable due from cooperatives under Plasma scheme had been disclosed
in note 17 and note 9.
Annual Report 2022 | Anglo-Eastern Plantations Plc
143
Notes to the Consolidated Financial Statements
27 Disclosure of financial instruments and other risks - continued
Credit risk - continued
Deposits with banks and other financial institutions and investment securities are placed, or entered into, with reputable financial institutions or
companies with high credit ratings and no history of default.
As the Group does not hold any collateral, the maximum exposure to credit risk for each class of financial instrument is the carrying amount
presented on the statement of financial position, except in the case of the financial guarantee contracts offered by two subsidiaries to
cooperatives in order for them to obtain bank loans in 2013 and 2017, which are not held on the statement of financial position of the Group.
See note 26.
Capital
The Group defines its Capital as Share capital and Reserves, shown in the statement of financial position as "Issued capital attributable to
owners of the parent" and amounting to $467,134,000 at 31 December 2022 (2021: $440,030,000).
Group policy presently attempts to fund development from self-generated funds and loans and not from the issue of new share capital. At 31
December 2022, the Group had no borrowings (2021: nil) but, depending on market conditions, the Board is prepared for the Group to have
net borrowings.
Plantation industry risk
Please refer to pages 31 - 36.
Annual Report 2022 | Anglo-Eastern Plantations Plc
144
Notes to the Consolidated Financial Statements
28 Subsidiary companies
The principal subsidiaries of the Company all of which have been included in these consolidated financial statements are as follows:
Name
Principal sub-holding company
Anglo-Indonesian Oil Palms Limited
Management company
Anglo-Eastern Plantations Management Sdn Bhd
PT Anglo-Eastern Plantations Management Indonesia
Operating companies
Anglo-Eastern Plantations (M) Sdn Bhd
All For You Sdn Bhd
PT Alno Agro Utama
PT Anak Tasik
PT Bangka Malindo Lestari
PT Bina Pitri Jaya
PT Cahaya Pelita Andhika*
PT Empat Lawang Agro Perkasa**
PT Hijau Pryan Perdana
PT Kahayan Agro Plantation
PT Karya Kencana Sentosa Tiga**
PT Mitra Puding Mas
PT Musam Utjing
PT Riau Agrindo Agung**
PT Sawit Graha Manunggal*
PT Simpang Ampat
PT Tasik Raja
PT United Kingdom Indonesia Plantations
Dormant companies
Country of
incorporation and
principal place of
business
Proportion of
ownership interest at
31 December
2021
2022
Non-controlling
interests ownership /
voting interest at 31
December
2021
2022
United Kingdom
100%
100%
Malaysia
Indonesia
Malaysia
Malaysia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
100%
100%
55%
100%
90%
100%
95%
80%
100%
80%
80%
78%
81%
90%
75%
76%
86%
100%
80%
75%
100%
100%
100%
100%
100%
100%
100%
55%
100%
90%
100%
95%
80%
90%
95%
80%
78%
95%
90%
75%
95%
82%
100%
80%
75%
100%
100%
100%
100%
100%
-
-
-
45%
-
10%
-
5%
20%
-
20%
20%
22%
19%
10%
25%
24%
14%
-
20%
25%
-
-
-
-
-
-
-
-
45%
-
10%
-
5%
20%
10%
5%
20%
22%
5%
10%
25%
5%
18%
-
20%
25%
-
-
-
-
-
The Ampat (Sumatra) Rubber Estate (1913) Limited
Gadek Indonesia (1975) Limited
Mergerset (1980) Limited
Musam Indonesia Limited
Indopalm Services Limited
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
*The Group purchased some of the shares from non-controlling interest during the year. Hence, the Company’s effective ownership has
increased.
**The decrease in the Company’s effective ownership of these subsidiaries is due to group restructuring.
The principal United Kingdom sub-holding company, UK management company and UK dormant companies are registered in England and
Wales and are direct subsidiaries of the Company. The Malaysian operating companies and management company are incorporated in
Malaysia and are direct subsidiaries of the Company. The Indonesian operating companies and management company are incorporated in
Indonesia and are direct subsidiaries of the principal sub-holding company. The principal activity of the operating companies is plantation
agriculture. The registered office of the principal subsidiaries are disclosed below:
Subsidiaries by country
UK registered subsidiaries
Malaysia registered subsidiaries
Indonesia registered subsidiaries
Registered address
Quadrant House, 6th Floor
4 Thomas More Square
London E1W 1YW
United Kingdom
7th Floor, Wisma Equity
150 Jalan Ampang
50450 Kuala Lumpur
Malaysia
3rd Floor, Wisma HSBC, Jalan Diponegoro, Kav 11
Medan 20152
North Sumatera
Indonesia
Annual Report 2022 | Anglo-Eastern Plantations Plc
145
Notes to the Consolidated Financial Statements
29 Non-controlling interests
The Group identified subsidiaries with material non-controlling interests (“NCI”) based on the total assets in relation to the Group. A subsidiary’s NCI is material if the subsidiary contributed more than
10% of the Group’s total assets. The subsidiaries identified and their summarised financial information, before intra-group eliminations, are presented below:
l
1
2
0
2
0
0
0
$
8
2
7
,
9
7
4
8
3
,
2
2
5
1
9
9
3
,
2
2
3
-
5
7
0
,
4
8
7
0
,
4
1
2
0
2
0
0
0
$
3
9
0
,
0
8
4
9
3
,
9
1
)
7
5
5
,
2
5
(
)
7
6
5
,
9
(
3
6
3
,
7
3
0
0
8
,
6
PT Tasik Raja
20%
1
2
0
2
0
0
0
$
)
5
5
3
,
4
(
5
7
0
,
7
2
)
9
8
6
,
1
2
(
1
3
0
,
1
PT Mitra Puding Mas
10%
Notes to the Consolidated Financial Statements
I
i
i
i
l
2022
2022
2021
$000
$000
$000
105,308
41,958
64,458
46,071
46,189
27,153
The Group identified subsidiaries with material non-controlling interests (“NCI”) based on the total assets in relation to the Group. A subsidiary’s NCI is material if the subsidiary contributed more than
(1,116)
(1,077)
(1,329)
10% of the Group’s total assets. The subsidiaries identified and their summarised financial information, before intra-group eliminations, are presented below:
(6,007)
(6,263)
(5,010)
144,295
84,019
82,021
PT Mitra Puding Mas
10%
8,402
2022
2021
$000
$000
48,883
51,237
50,828
48,527
(2,280)
(2,759)
(9,829)
(5,442)
87,176
91,989
PT Alno Agro Utama
10%
8,718
2021
$000
73,334
78,140
(749)
(7,555)
143,170
PT Tasik Raja
20%
28,634
2022
$000
79,864
79,622
(704)
(12,273)
146,509
PT Bina Pitri Jaya
)
8
2
3
,
4
1
(
29,302
)
7
0
7
,
1
(
)
3
5
5
,
1
(
)
8
6
4
,
2
(
)
8
0
1
,
2
(
)
9
2
3
,
1
(
)
0
8
2
,
2
(
)
3
6
2
,
6
(
)
2
4
4
,
5
(
)
2
5
7
,
9
(
8,202
7
3
0
,
6
1
8
5
4
,
4
6
3
8
8
,
8
4
3
5
1
,
7
2
8
2
8
,
0
5
9
1
0
,
4
8
9
8
9
,
1
9
7
9
2
,
9
1
8
8
6
,
4
1
4
7
3
,
4
6
6
9
1
,
2
8
8
9
3
,
1
1
9
9
1
,
9
2
0
4
,
8
0
9
3
,
6
0
4
1
,
1
)
5
7
9
(
1
2
0
2
2
2
0
2
0
0
0
$
0
0
0
$
1
2
0
2
2
2
0
2
0
0
0
$
0
0
0
$
2
2
0
2
0
0
0
$
)
8
8
(
4
4
1
i
l
l
i
2
2
0
2
1
2
0
2
0
0
0
$
0
0
0
$
)
7
4
6
,
8
2
(
0
2
8
,
8
1
1
7
7
,
3
7
2022
$000
98,634
20,520
(17,198)
3,322
2
9
3
,
5
2
7
6
9
,
3
2
1
)
1
5
2
,
1
(
)
8
4
9
,
0
1
(
)
3
7
8
,
5
(
2
3
2
,
7
2021
$000
91,945
16,771
(1,623)
15,148
7
4
4
,
8
2
6
9
9
,
2
5
5
3
2
,
2
4
1
1
3
6
,
7
2
0
0
0
$
2
2
0
2
2022
$000
52,774
9,965
(9,075)
890
1
2
0
2
0
0
0
$
2
8
2
,
7
)
4
1
5
,
5
(
)
7
8
5
(
)
7
3
0
,
0
2
(
)
0
5
1
(
0
8
0
,
2
2021
$000
64,374
12,276
(878)
11,398
5
4
5
,
6
2
2
0
2
0
0
0
$
4,104
(3,440)
664
570
8
0
3
,
5
0
1
1
7
0
,
6
4
)
7
7
0
,
1
(
)
7
0
0
,
6
(
5
9
2
,
4
4
1
3,354
(325)
3,029
17
9
5
8
,
8
2
2
2
0
2
0
0
0
$
997
(908)
89
372
0
0
5
,
0
0
1
)
0
2
6
,
2
(
)
3
2
5
,
5
7
(
7
5
3
,
2
2
1,228
(88)
1,140
144
1
2
0
2
0
0
0
$
7
3
2
,
1
5
7
2
5
,
8
4
)
9
5
7
,
2
(
)
9
2
8
,
9
(
6
7
1
,
7
8
8
1
7
,
8
1
2
0
2
0
0
0
$
)
1
4
(
)
8
2
0
,
3
(
7
4
5
,
6
1
8
7
4
,
3
1
%
4
1
a
g
g
n
u
n
a
M
a
h
a
r
G
n
a
Entity
h
t
e
NCI percentage
r
o
m
d
e
t
u
b
i
r
t
n
o
c
t
i
Summarised income statement
For the year ended 31 December
2
2
0
2
0
0
0
$
8
0
0
,
4
8
6
3
2
,
0
2
)
8
6
4
,
4
(
8
6
7
,
5
1
-
8
6
6
,
3
)
0
1
6
(
8
5
0
,
3
i
i
y
r
a
d
s
b
u
s
Revenue
Profit after tax
%
Other comprehensive (expense) / income
0
2
Total comprehensive income
2
9
1
,
7
0
7
4
,
5
1
2
0
2
0
0
0
$
a
y
a
J
)
2
2
7
,
1
(
7
2
8
,
3
7
8
3
4
,
1
6
4
)
4
4
3
(
4
9
0
,
1
e
h
t
f
i
l
l
i
’
i
:
2
1
6
6
4
1
2
6
)
0
7
(
%
0
1
0
0
0
$
2
2
0
2
0
0
0
$
1
2
0
2
)
5
9
6
(
2
6
8
,
3
5
7
5
,
1
9
2
3
,
2
5
0
5
,
1
2
5
0
,
5
1
7
4
7
,
5
1
9
5
2
,
7
8
9
0
3
,
9
1
8
8
6
,
7
7
)
6
9
3
,
3
(
)
0
8
9
,
6
1
(
e
r
a
,
s
n
o
i
t
a
n
m
w
o
e
b
d
e
t
n
e
s
e
r
p
a
Profit allocated to NCI
i
r
e
Other comprehensive (expenses) / income allocated to NCI
t
a
m
Total comprehensive income allocated to NCI
s
Dividends paid to NCI
C
N
s
a
y
Summarised statement of financial position
m
r
a
a
As at 31 December
d
t
U
s
b
o
u
r
29 Non-controlling interests
g
s
Non-current assets
A
A
o
.
Current assets
p
n
u
A
o
Non-current liabilities
r
T
G
P
Current liabilities
e
h
t
Net assets
o
t
Entity
%
n
o
0
NCI percentage
i
1
t
Accumulated NCI
a
e
r
n
s
a
M
g
n
d
u
Summarised income statement
P
Summarised cash flows
a
For the year ended 31 December
r
For the year ended 31 December
t
i
e
p
u
o
r
g
-
a
r
t
n
0
9
8
7
9
9
)
8
0
9
(
9
8
2
7
3
6
7
2
,
2
1
2
4
1
,
6
1
s
t
e
s
s
a
8
2
2
,
1
4
1
6
,
1
)
8
7
8
(
1
2
0
2
0
0
0
$
7
4
2
9
3
6
i
i
2
2
0
2
0
0
0
$
5
6
9
,
9
4
7
7
,
2
5
)
5
7
0
,
9
(
i
l
e
h
t
Revenue
Cash flows from operating activities
Profit after tax
Cash flows used in investing activities
%
Other comprehensive (expense) / income
Cash flows (used in) / from financing activities
0
2
Total comprehensive income
Net cash (outflows) / inflows
)
3
2
6
,
1
(
5
4
9
,
1
9
1
7
7
,
6
1
8
4
1
,
5
1
4
5
3
,
3
1
2
0
2
0
0
0
$
)
5
2
3
(
7
1
9
2
0
,
3
w
a
S
T
P
i
r
t
i
P
a
n
B
T
P
M
T
P
i
j
a
a
R
k
s
a
T
T
P
e
r
o
f
e
b
,
n
o
i
t
a
m
r
o
f
n
i
a
c
n
a
n
i
f
d
e
s
i
r
a
m
m
u
s
r
i
e
h
t
d
n
a
d
e
i
f
i
t
n
e
d
l
a
t
o
t
n
o
d
e
s
a
b
s
t
s
e
r
e
t
n
i
o
r
t
n
o
c
-
n
o
n
s
t
n
e
m
e
t
a
t
S
i
l
a
i
c
n
a
n
F
d
e
t
a
d
i
l
o
s
n
o
C
e
h
t
o
t
s
e
t
o
N
2
2
0
2
1
2
0
2
0
0
0
$
0
0
0
$
)
6
1
1
,
1
(
9
8
1
,
6
4
8
5
9
,
1
4
2022
2022
$000
$000
98,634
16,391
20,520
(2,373)
(17,198)
(19,623)
3,322
(5,605)
4
3
3
,
3
7
0
4
1
,
8
7
)
9
4
7
(
)
0
1
0
,
5
(
)
5
5
5
,
7
(
1
2
0
,
2
8
0
7
1
,
3
4
1
2
0
2
,
8
2021
2021
$000
$000
91,945
25,736
16,771
(1,221)
(1,623)
22,413
15,148
46,928
4
3
6
,
8
2
7
5
3
,
8
0
0
0
$
2
2
0
2
2022
2022
$000
$000
52,774
8,357
9,965
(8,645)
(9,075)
17,369
890
17,081
1
2
0
2
0
0
0
$
6
3
7
,
5
2
)
5
4
6
,
8
(
)
1
2
2
,
1
(
9
6
3
,
7
1
3
1
4
,
2
2
1
8
0
,
7
1
2021
2021
$000
$000
64,374
19,297
12,276
(1,707)
(878)
(1,553)
11,398
16,037
8
2
9
,
6
4
“
(
)
”
I
Profit allocated to NCI
C
Other comprehensive (expenses) / income allocated to NCI
N
Total comprehensive income allocated to NCI
Dividends paid to NCI
)
8
9
1
,
7
1
(
)
0
4
4
,
3
(
4
3
6
,
8
9
0
2
5
,
0
2
2
2
3
,
3
4
0
1
,
4
2
2
0
2
0
0
0
$
0
7
5
4
6
6
2
2
0
2
0
0
0
$
4,104
(3,440)
664
570
2
2
6
,
9
7
4
6
8
,
9
7
)
4
0
7
(
)
3
7
2
,
2
1
(
9
0
5
,
6
4
1
3,354
(325)
3,029
17
2
0
3
,
9
2
2
2
0
2
0
0
0
$
997
(908)
89
372
1
9
3
,
6
1
)
3
7
3
,
2
(
)
3
2
6
,
9
1
(
)
5
0
6
,
5
(
1,228
(88)
1,140
144
Annual Report 2022 | Anglo-Eastern Plantations Plc
g
n
Summarised statement of financial position
As at 31 December
i
l
l
I
C
N
o
t
d
e
t
a
c
o
l
l
a
e
m
o
c
n
i
/
e
m
o
c
n
i
i
i
i
l
s
e
i
r
a
d
s
b
u
s
Non-current assets
Current assets
a
Non-current liabilities
i
r
e
t
Current liabilities
a
m
Net assets
h
t
i
w
s
e
i
r
a
d
s
b
u
s
Accumulated NCI
.
s
t
e
s
s
a
e
h
T
/
l
i
i
a
t
o
t
e
m
o
c
n
t
n
e
m
e
t
a
t
s
e
m
o
c
n
r
e
b
m
e
c
e
D
Summarised cash flows
1
3
For the year ended 31 December
)
e
s
n
e
p
x
e
(
e
e
v
v
s
s
n
n
e
e
h
h
e
e
Cash flows from operating activities
r
r
p
p
m
m
Cash flows used in investing activities
o
p
o
c
u
c
Cash flows (used in) / from financing activities
o
r
G
Net cash (outflows) / inflows
e
C
h
N
T
e
g
a
n
e
c
r
e
p
s
p
u
o
r
G
e
h
i
r
a
m
m
u
S
e
u
n
e
v
e
R
d
e
i
f
i
t
n
e
d
r
a
e
y
e
h
d
e
t
a
c
o
o
%
0
1
d
e
d
n
e
C
N
o
t
r
e
h
O
a
o
T
d
e
s
r
o
F
x
a
t
y
t
i
t
n
E
o
r
o
r
r
e
t
i
f
t
i
f
P
P
a
t
f
a
l
l
t
f
I
t
i
t
t
t
I
i
l
’
i
i
i
)
s
e
s
n
e
p
x
e
(
i
e
v
s
n
e
h
e
r
p
m
o
c
r
e
h
O
t
2022
$000
79,864
79,622
(704)
(12,273)
146,509
2021
$000
73,334
78,140
(749)
(7,555)
143,170
29,302
28,634
i
l
s
e
i
t
i
l
i
b
a
s
t
e
s
s
a
s
t
e
s
s
a
2022
$000
16,391
t
t
n
n
(2,373)
e
e
r
r
r
r
u
u
n
(19,623)
c
c
e
-
-
r
n
n
r
(5,605)
u
o
o
N
C
N
t
s
e
i
t
i
l
i
b
a
i
l
t
n
e
r
r
u
C
I
2021
$000
C
N
25,736
d
e
(1,221)
a
u
m
22,413
u
c
46,928
c
A
t
l
s
t
e
s
s
a
t
e
N
I
C
N
o
t
d
e
t
a
c
o
l
l
a
e
m
o
c
n
i
i
e
v
s
n
e
h
e
r
p
m
o
c
l
t
a
o
T
I
C
N
o
t
d
a
p
i
s
d
n
e
d
v
D
i
i
n
o
i
t
i
s
o
p
l
a
i
c
n
a
n
i
f
f
o
t
n
e
m
e
t
a
t
s
d
e
s
i
r
a
m
m
u
S
r
e
b
m
e
c
e
D
1
3
t
a
s
A
2022
$000
41,958
46,189
(1,116)
(5,010)
82,021
s
e
i
t
i
v
i
t
c
a
g
n
i
t
a
r
e
p
o
m
o
r
f
r
e
b
8,202
m
e
c
e
D
1
3
d
e
d
n
e
2022
$000
8,357
s
(8,645)
w
o
17,369
17,081
r
a
e
y
e
h
h
s
a
C
r
o
F
l
f
t
s
w
o
l
f
h
s
a
c
d
e
s
i
r
a
m
m
u
S
s
e
i
t
i
v
i
t
c
a
g
n
i
t
s
e
v
n
i
n
i
d
e
s
u
s
w
o
l
f
h
s
a
C
s
e
i
t
i
v
i
t
c
a
i
g
n
c
n
a
n
i
f
m
o
r
f
2021
$000
64,458
27,153
(1,329)
(6,263)
84,019
8,402
s
w
o
l
f
n
/
i
)
n
i
d
e
s
u
(
s
w
o
l
f
h
s
a
C
/
2021
)
s
w
$000
o
l
f
19,297
t
(1,707)
(1,553)
16,037
e
N
u
o
(
h
s
a
c
t
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
N
9
2
6
4
1
9,199
28,859
PT Alno Agro Utama
10%
PT Bina Pitri Jaya
PT Sawit Graha Manunggal
20%
14%
2022
$000
82,196
16,142
(9,752)
6,390
1,614
(975)
639
247
2021
$000
87,259
15,747
(695)
15,052
1,575
(70)
1,505
12
2022
$000
77,688
19,309
(16,980)
2,329
3,862
(3,396)
466
621
PT Sawit Graha Manunggal
20%
28,447
7,232
2021
$000
73,827
7,192
(1,722)
5,470
1,438
(344)
1,094
46
2021
$000
123,967
25,392
(1,251)
(5,873)
142,235
2021
2021
$000
$000
73,827
7,282
7,192
(587)
(1,722)
(150)
5,470
6,545
1,438
(344)
1,094
46
2022
$000
84,008
20,236
(4,468)
15,768
3,668
(610)
3,058
-
2022
$000
73,771
18,820
(28,647)
(10,948)
52,996
2022
2022
$000
$000
84,008
27,631
20,236
(5,514)
(4,468)
(20,037)
15,768
2,080
3,668
(610)
3,058
-
2022
$000
73,771
18,820
(28,647)
(10,948)
52,996
2021
$000
79,728
22,384
15
22,399
4,075
4,078
3
-
2021
$000
80,093
19,394
(52,557)
(9,567)
37,363
14%
6,800
2021
2021
$000
$000
79,728
27,075
22,384
(4,355)
(21,689)
15
22,399
1,031
4,075
4,078
3
-
2021
$000
80,093
19,394
(52,557)
(9,567)
37,363
2021
$000
27,075
(4,355)
(21,689)
1,031
2021
2021
$000
$000
87,259
16,547
15,747
(3,028)
(695)
(41)
15,052
13,478
1,575
(70)
1,505
12
146
2022
2022
$000
$000
77,688
100,500
19,309
(75,523)
(16,980)
(2,620)
2,329
22,357
3,862
(3,396)
466
621
2021
$000
51,237
48,527
(2,759)
(9,829)
87,176
2022
$000
105,308
46,071
(1,077)
(6,007)
144,295
2021
$000
123,967
25,392
(1,251)
(5,873)
142,235
8,718
28,859
28,447
7,232
6,800
2021
$000
16,547
(3,028)
(41)
13,478
2022
$000
100,500
(75,523)
(2,620)
22,357
2021
$000
7,282
(587)
(150)
6,545
2022
$000
27,631
(5,514)
(20,037)
2,080
2022
2022
$000
$000
82,196
14,688
16,142
(14,328)
(9,752)
(2,468)
6,390
(2,108)
1,614
(975)
639
247
2022
c
$000
l
P
48,883
s
n
o
50,828
i
t
a
(2,280)
t
n
(5,442)
a
l
P
91,989
n
r
e
t
s
9,199
a
E
-
o
g
n
A
2022
$000
2
2
0
14,688
2
t
(14,328)
r
o
p
(2,468)
e
R
(2,108)
l
|
l
a
u
n
n
A
Annual Report 2022 | Anglo-Eastern Plantations Plc
146
Notes to the Consolidated Financial Statements
30 Acquisition of non-controlling interests
Acquisition of additional interest in RAA, KKST, ELAP, CPA and SGM.
On 10 October 2022, the Group acquired an additional 10% interest in the voting shares of CPA, increasing its ownership interest from 90%
to 100%. At the same financial year on 30 November 2022, the Group also acquired an additional 5% interest in the voting shares of RAA,
KKST, ELAP and SGM, increasing its ownership interest between 86% and 100%. Total consideration of $5,883,000 was paid to the non-
controlling shareholders. The carrying value of the net assets of RAA, KKST, ELAP, CPA and SGM was $63,270,000. Following is the schedule
of additional interest acquired in RAA, KKST, ELAP, CPA and SGM:
Consideration paid to non-controlling shareholders
Carrying value of the additional interest
Difference recognised in retained earnings
31 Events after the reporting period
There were no events after the reporting period which would be required to be disclosed in these financial statements.
$000
5,833
3,175
9,008
Annual Report 2022 | Anglo-Eastern Plantations Plc
147
Company Statement of Financial Position
As at 31 December 2022
Company Number: 1884630
Non-current assets
Investments in subsidiaries
Investments
Current assets
Receivables
Cash at bank and in hand
Current liabilities
Other payables
Net current (liabilities) / assets
Net assets
Capital and reserves
Share capital
Treasury shares
Share premium
Capital redemption reserve
Exchange reserves
Retained earnings
Shareholders' funds
Note
4
5
6
7
7
2022
$000
50,709
42
50,751
1,163
954
2,117
(3,282)
(1,165)
49,586
15,504
(1,171)
23,935
1,087
3,872
6,359
49,586
2021
$000
52,673
49
52,722
2,154
1,599
3,753
(3,544)
209
52,931
15,504
(1,171)
23,935
1,087
3,872
9,704
52,931
The loss after tax for the year for the Company in the consolidated financial statements of the Company was $1,363,000 (2021: loss after tax
$1,796,000).
The financial statements were approved and authorised for issue by the Board of Directors on 21 April 2023 and were signed on its behalf by:
Dato’ John Lim Ewe Chuan
Executive Director
The accompanying notes are an integral part of this statement of financial position.
Annual Report 2022 | Anglo-Eastern Plantations Plc
148
Company Statement of Changes in Equity
For the year ended 31 December 2022
Balance at 31 December 2020
)
6
9
7
,
1
(
)
6
9
7
,
1
(
)
6
9
3
(
1
3
9
,
2
5
)
3
6
3
,
1
(
)
3
6
3
,
1
(
)
2
8
9
,
1
(
6
8
5
,
9
4
l
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t
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0
0
0
$
3
2
1
,
5
5
Comprehensive loss for the year
Loss for the year
Total comprehensive loss for the year
i
0
0
0
$
6
9
8
,
1
1
s
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Dividends paid
d
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i
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Balance at 31 December 2021
t
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Comprehensive loss for the year
)
6
9
7
,
1
(
)
6
9
7
,
1
(
4
0
7
,
9
)
6
9
3
(
Loss for the year
)
3
6
3
,
1
(
)
3
6
3
,
1
(
)
2
8
9
,
1
(
9
5
3
,
6
Share
capital
$000
15,504
Treasury
shares
$000
(1,171)
Share
premium
$000
23,935
-
-
-
-
-
-
-
-
-
Capital
redemption
reserve
$000
1,087
-
-
-
Exchange
reserves
$000
3,872
Retained
earnings
$000
11,896
-
-
-
15,504
(1,171)
23,935
1,087
3,872
Total comprehensive loss for the year
-
-
-
2
7
8
,
3
0
0
0
$
2
7
8
,
3
s
e
v
r
e
s
e
r
e
g
n
a
h
Dividends paid
c
x
E
Company Statement of Changes in Equity
For the year ended 31 December 2022
Balance at 31 December 2022
15,504
-
(1,171)
-
-
-
2
7
8
,
3
-
-
-
-
-
-
-
-
23,935
0
0
0
$
e
v
r
e
s
e
r
7
8
0
,
1
l
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t
i
p
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n
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t
p
m
e
d
e
r
-
-
-
7
8
0
,
1
-
-
-
7
8
0
,
1
Balance at 31 December 2020
Share
capital
$000
15,504
Treasury
shares
$000
(1,171)
Share
premium
$000
23,935
Comprehensive loss for the year
-
-
-
e
r
a
h
S
i
0
0
0
$
5
3
9
,
3
2
m
u
m
Loss for the year
e
r
p
5
3
9
,
3
2
-
-
-
5
3
9
,
3
2
The accompanying notes are an integral part of this statement of changes in equity.
Total comprehensive loss for the year
Dividends paid
-
-
-
-
-
-
-
-
-
-
-
1,087
9
4
1
Capital
redemption
reserve
$000
1,087
-
-
-
-
-
-
3,872
Exchange
reserves
$000
3,872
Retained
earnings
$000
11,896
-
-
-
15,504
(1,171)
23,935
1,087
3,872
Balance at 31 December 2021
-
-
-
0
0
0
$
s
e
r
a
h
s
)
1
7
1
,
1
(
y
r
u
s
a
e
r
T
Comprehensive loss for the year
Loss for the year
Total comprehensive loss for the year
-
-
-
e
r
a
h
Dividends paid
S
0
0
0
$
l
a
t
i
p
a
c
4
0
5
,
5
1
)
1
7
1
,
1
(
4
0
5
,
5
1
-
-
-
-
-
-
)
1
7
1
,
1
(
4
0
5
,
5
1
Annual Report 2022 | Anglo-Eastern Plantations Plc
Balance at 31 December 2022
15,504
(1,171)
-
-
-
-
Total
$000
55,123
(1,796)
(1,796)
(396)
52,931
(1,363)
(1,363)
(1,982)
49,586
Total
$000
55,123
(1,796)
(1,796)
(396)
52,931
(1,363)
(1,363)
(1,982)
49,586
(1,796)
(1,796)
(396)
9,704
(1,363)
(1,363)
(1,982)
6,359
(1,796)
(1,796)
(396)
9,704
(1,363)
(1,363)
(1,982)
6,359
.
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Annual Report 2022 | Anglo-Eastern Plantations Plc
149
y
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F
Notes to the Company Financial Statements
1 Basis of preparation
The financial statements have been prepared in accordance with Financial Reporting Standard 100 Application of Financial Reporting
Requirements ("FRS 100") and Financial Reporting Standard 101 Reduced Disclosure Framework ("FRS 101").
Disclosure exemptions adopted
In preparing these financial statements the Company has taken advantage of all disclosure exemptions conferred by FRS 101. Therefore,
these financial statements do not include:
•
•
•
•
•
•
certain comparative information as otherwise required by IFRS;
certain disclosures regarding the Company's capital;
a statement of cash flows;
the effect of future accounting standards not yet adopted;
the disclosure of the remuneration of key management personnel; and
disclosure of related party transactions with other wholly owned members of Anglo-Eastern Plantations Plc group of companies.
In addition, and in accordance with FRS 101 further disclosure exemptions have been adopted because equivalent disclosures are included in
the Company's consolidated financial statements. These financial statements do not include certain disclosures in respect of:
financial instruments (other than certain disclosures required as a result of recording financial instruments at fair value); or
•
fair value measurement (other than certain disclosures required as a result of recording financial instruments at fair value).
•
2 Accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently
applied to all the years presented unless otherwise stated.
(a) Basis of accounting
The separate financial statements of the Company are presented as required by the Companies Act 2006. They have been prepared
under the historical cost convention. The presentation currency used is US Dollar and amounts have been presented in round thousands
("$000"). The principal accounting policies are summarised below.
(b)
Foreign currency
The functional currency of the Company is US Dollar, chosen to reflect the primary economic environment in which the Company
operates. Transactions in sterling are translated to US Dollar at the actual exchange rate and exchange losses recognised in income
statement. Sterling denominated assets and liabilities are converted to US Dollar at the rate ruling at the balance sheet date. Exchange
differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in income statement.
(c)
Investments
Investments in subsidiaries are stated at cost less provision for any impairment.
(d) Property, plant and equipment
All items of property, plant and equipment are initially measured at cost. Cost includes expenditure that is directly attributable to the
acquisition of the items. After initial recognition, all items of property, plant and equipment are stated at cost less accumulated
depreciation and any accumulated impairment losses.
Office plant and equipment is depreciated using the straight-line method. The yearly rate of depreciation is as follows:
Office plant, equipment & vehicle - 20% per annum
(e) Dividends
(f)
(g)
(h)
Equity dividends are recognised when they become legally payable. The Company pays only one dividend each year as a final dividend
which becomes legally payable when approved by the shareholders at the next annual general meeting.
Deferred taxation
A deferred tax asset has not been recognised in relation to brought forward tax losses of $12.4m (2021: $11.0m) because it is not certain
those losses can be utilised in the foreseeable future.
Treasury shares
Consideration paid or received for the purchase or sale of the Company’s own shares for holding in treasury is recognised directly in
equity, where the cost is presented as the treasury shares. Any excess of the consideration received on the sale of treasury shares over
the weighted average cost of shares sold is taken to the share premium account. Any shares held in treasury are treated as cancelled
for the purpose of calculating earnings per share.
Financial guarantee contracts
Where the Company enters into financial guarantee contracts and guarantees the indebtedness of other companies within the Group,
these are accounted for under IFRS 9. The details of financial guarantee contracts are disclosed in note 26 of the consolidated financial
statements.
Annual Report 2022 | Anglo-Eastern Plantations Plc
150
Notes to the Company Financial Statements
2 Accounting policies - continued
(i)
Critical accounting estimates and judgements
The Company makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated
based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
discussed below.
Estimates and assumptions
Recoverability of investments and ECL on intercompany balances - estimate of future cash flows and liquid assets (note 5)
3
Income statement
As permitted by section 408 of the Companies Act 2006, a separate income statement dealing with the results of the Company has not been
presented. The loss before tax for the year for the Company in the consolidated financial statements of the Company was $1,360,000 (2021:
loss before tax $1,792,000) and loss after tax for the year was $1,363,000 (2021: loss after tax $1,796,000).
The remuneration of the directors of the Company is disclosed in note 7 to the consolidated financial statements. Auditor's remuneration is
disclosed in note 5 to the consolidated financial statements.
4
Investments in subsidiaries
At 1 January 2021
Movements during the year
Repayment
Reversal of loss provision
At 31 December 2021
Movements during the year:
Repayment
Loss provision
At 31 December 2022
Net carrying amount
At 31 December
Investments in
subsidiaries
undertakings
$000
Loans to
subsidiaries
undertakings
$000
Total
$000
12,253
-
-
12,253
-
-
12,253
42,283
54,536
(1,863)
-
40,420
(1,964)
-
38,456
2022
$000
(1,863)
-
52,673
(1,964)
-
50,709
2021
$000
50,709
52,673
Loans to subsidiary companies do not have fixed repayment terms and are repayable on demand. In practice, they are effectively long-term in
nature and therefore classified as investments in subsidiaries. The details of the ECL is disclosed in note 5.
The details of the subsidiaries are disclosed in note 28 of the consolidated financial statements.
5 Receivables
Amounts owed by group undertakings:
Anglo-Eastern Plantations Management Sdn Bhd
PT Anglo-Eastern Plantations Management Indonesia
Other receivables
2022
$000
1,072
34
1,106
57
1,163
2021
$000
2,092
17
2,109
45
2,154
The amounts owed by group undertakings arise as a result of advances to subsidiary companies and expenses paid on their behalf. The
amounts are unsecured, interest free and do not have fixed repayment terms.
Annual Report 2022 | Anglo-Eastern Plantations Plc
151
Notes to the Company Financial Statements
5 Receivables - continued
For intercompany balances that are repayable on demand, the Company’s ECL is based on the following assumptions:
-
If the borrower has sufficient accessible highly liquid assets in order to repay the loan if demanded at the reporting date, the ECL is likely
to be immaterial.
If the borrower could not repay the loan if demanded at the reporting date, the Company considers the expected manner of recovery to
measure the ECL. The recovery manner could be either through ‘repayment over time’ or a fire sale of less liquid assets by the borrower.
If the recovery strategies indicate that the Company would fully recover the outstanding balance of the loan, the ECL would be limited to
the effect of the discounting of the amount due on the loan, at the loan’s effective interest rates, over the period until the amount is fully
recovered.
-
-
The details of other receivables related to ECL were disclosed in note 17 and note 27 of the consolidated financial statements.
Movements on the Company’s loss provision on both current and non-current other receivables were as follows:
At 1 January
Loss provision / (Reversal of loss provision) during the year
At 31 December
At 31 December 2022, the expected loss provision for receivables was as follows:
2022
$000
2,149
86
2,235
Loss
provision
$000
(2,198)
-
(37)
(2,235)
Gross
carrying
amount
$000
3,304
57
38,493
41,854
Gross carrying
amount
$000
Loss provision
$000
4,213
53
40,457
44,723
(2,104)
(8)
(37)
(2,149)
2022
$000
2,163
246
2,409
873
3,282
2021
$000
1,515
634
2,149
Net carrying
amount
$000
1,106
57
38,456
39,619
Net carrying
amount
$000
2,109
45
40,420
42,574
2021
$000
2,163
246
2,409
1,135
3,544
2022
Amounts owed by group undertakings
Other receivables
Investments in subsidiaries (note 4)
- Loans to subsidiaries undertakings
2021
Amounts owed by group undertakings:
Other receivables
Investments in subsidiaries (note 4)
- Loans to subsidiaries undertakings
6 Other payables
Amounts owed to group undertakings:
Mergerset (1980) Limited
Musam Indonesia Limited
Accruals
The amounts owed to group undertakings arise as a result of advances from subsidiary companies and expenses paid on our behalf. The
amounts are unsecured, interest free and do not have fixed repayment terms.
7 Share capital and treasury shares
The details of the share capital and treasury shares are disclosed in note 22 of the consolidated financial statements.
Annual Report 2022 | Anglo-Eastern Plantations Plc
152
Notes to the Company Financial Statements
8 Related party transactions
An office premises lease agreement was entered with Infra Sari Sdn Bhd, a company controlled by late Madam Lim Siew Kim. The rental paid
during the year was $250,896 (2021: $262,237). There was no balance outstanding at the year end (2021: nil). This has been classified as a
short term lease and therefore lease payments have been recognised directly as an operating expense in the income statement.
The details of the dividend payment to the related parties controlled by late Madam Lim Siew Kim are disclosed in note 24 of the consolidated
financial statements.
Transactions between the Company and its subsidiaries are disclosed below:
Nature of transactions
Name
Management fees from
Commissioner services income
Receivable from
Payable to
Anglo-Eastern Plantations Malaysia Sdn Bhd
PT Anglo-Eastern Plantations Management Indonesia
Subsidiaries (note 5)
Subsidiaries (note 6)
2022
$000
36
17
3,304
2,409
2021
$000
57
17
4,213
2,409
The details of the intercompany receivables and payables are disclosed in note 5 and note 6 of the Company financial statements respectively.
9 Employees' and Directors' remuneration
Average numbers employed during the year
- directors
- staff
Staff costs
Wages and salaries
Social security costs
Retirement benefits
2022
Number
2021
Number
5
-
5
2022
$000
-
-
-
-
4
-
4
2021
$000
-
-
-
-
The information required by the Companies Act and the Listing Rules of the Financial Conduct Authority are contained in the Directors'
remuneration report on pages 82 - 89 of which certain information on page 86 has been audited.
Directors' emoluments
10 Dividends
2022
$000
191
2021
$000
187
The details of the dividends are disclosed in note 11 of the consolidated financial statements.
11 Guarantees and other financial commitments
The Company has provided nil guarantees for loans to subsidiaries (2021: nil) as set out in note 26 of the consolidated financial statements.
Annual Report 2022 | Anglo-Eastern Plantations Plc
153
Notice of Annual General Meeting
Notice is hereby given that the thirty-eighth Annual General Meeting of Anglo-Eastern Plantations Plc will be held at the office of UHY Hacker
Young LLP, 6th Floor, Quadrant House, 4 Thomas More Square, London E1W 1YW on Friday 16 June 2023 at 11.00am (UK time) for the following
purposes:
1
2
3
4
5
6
7
8
9
To receive and consider the accounts and the reports of the directors and auditor thereon for the year ended 31 December 2022.
To approve the Directors' Remuneration Report (excluding the part containing the remuneration policy) as set out in the Company’s annual
report and accounts for the year ended 31 December 2022.
To approve the directors' remuneration policy in the form set out in the Directors’ Remuneration Report in the Company’s annual report and
accounts for the year ended 31 December 2022.
To declare a final dividend.
To re-elect Mr. Jonathan Law Ngee Song, as a Non-Executive Director.
To re-elect Dato’ John Lim Ewe Chuan as an Executive Director.
To re-elect Mr. Marcus Chan Jau Chwen as a Non-Executive Director.
To re-elect Mr. Lim Tian Huat as an Independent Non-Executive Director.
To re-elect Ms. Farah Suhanah Tun Ahmad Sarji as an Independent Non-Executive Director.
10 To re-appoint BDO LLP as auditor.
11 To authorise the directors to fix the remuneration of the auditor.
12 To consider the following resolution as an ordinary resolution:
That the directors be generally and unconditionally authorised in accordance with section 551 of the Companies Act 2006, in substitution for
all existing authorities to the extent unused, to exercise all the powers of the Company to allot:
(i)
(ii)
shares in the Company up to an aggregate nominal amount of £3,303,031 (representing 13,212,124 ordinary shares of 25p each)
which is equal to one third of the issued ordinary share capital (excluding treasury shares) at the date of this resolution: and in addition
equity securities of the Company (within the meaning of section 560(1) of the Companies Act 2006) in connection with an offer of such
securities by way of a rights issue up to an aggregate nominal amount of £3,303,031
provided that this authority shall expire on the date of the next annual general meeting after the passing of this resolution or 30 June 2024
whichever is earlier save that the Company may before such expiry make an offer or agreement which would or might require relevant
securities to be allotted after such expiry and the directors may allot relevant securities in pursuance of such an offer or agreement as if the
authority conferred hereby had not expired.
"rights issue" means an offer of equity securities open for acceptance for a period fixed by the directors to holders of equity securities (other
than the Company) on the register on a fixed record date in proportion to their respective holdings of such securities or in accordance with
the rights attached thereto (but subject to such exclusions or other arrangements as the directors may deem necessary or expedient in relation
to fractional entitlements or legal or practical problems under the laws of, or the requirements of any recognised regulatory body or any stock
exchange in, any territory).
13 To consider the following resolution as a special resolution:
That subject to and conditional on the passing of Resolution 12, the directors be empowered pursuant to section 570 of the Companies Act
2006) to allot equity securities (within the meaning of section 560 of that Act) for cash pursuant to the authority conferred by Resolution 12
and/or by way of sale of treasury shares as if section 561(1) of that Act did not apply to any such allotment or sale, provided that this
authorisation shall be limited to:
(i)
the allotment of equity securities and sale of treasury shares for cash in connection with an offer or issue of, or invitation to apply for,
equity securities made to (but in the case of the authority granted under paragraph (ii) of Resolution 12 by way of a rights issue only);
(a)
ordinary shareholders in proportion (as nearly may be practicable) to their existing holdings: and
(b)
holders of other equity securities, as required by the rights of those securities, or as the directors otherwise consider necessary,
Annual Report 2022 | Anglo-Eastern Plantations Plc
154
Notice of Annual General Meeting
13 To consider the following resolution as a special resolution: (continued)
and permitting the directors to impose any limit or restrictions and make any arrangements which they consider necessary or
appropriate to deal with treasury shares, fractional entitlement, record dates, legal regulatory or practical problems in, or under, the
laws of any territory, or any other matter; and
(ii)
in the case of the authority granted under paragraph (i) of Resolution 12 and/or the sale of treasury shares for cash, to the allotment
of equity shares or sale of treasury shares up to an aggregate nominal amount of £495,454.
Such power shall apply during the period expiring on the date of the next annual general meeting or on 30 June 2024 (whichever shall
be earlier) but the directors may during such periods make offers or agreements which would or might require equity securities to be
allotted (and treasury shares to be sold) after the expiry of such period.
14 To consider the following as a special resolution:
That the Company be generally and unconditionally authorised to make market purchases (within the meaning of section 693(4) of the
Companies Act 2006) of ordinary shares of 25p each in the capital of the Company on such terms as the directors think fit, provided that:
(a)
the maximum number of ordinary shares hereby authorised to be purchased is 3,963,637 (representing 10% of the issued ordinary
share capital);
(b)
the minimum price (exclusive of expenses) which may be paid for each ordinary share is 25p;
(c)
the maximum price (exclusive of expenses) which may be paid for each ordinary share is the higher of:
(i)
an amount equal to 105% of the average of the middle market quotations for such share as derived from the Daily Official List
of the London Stock Exchange for the five business days immediately preceding the date of purchase; and
(ii)
the price of the last independent trade and the highest current independent bid on the London Stock Exchange; and
(d)
the authority hereby conferred shall expire on 30 June 2024 or, if earlier, at the conclusion of the next annual general meeting of the
Company save that the Company may before the expiry of this authority make a contract of purchase which will or may be executed
wholly or partly after such expiry and may make a purchase of shares pursuant to any such contract.
15 To consider and if thought fit to pass the following resolution as a special resolution:
That a general meeting of the Company other than an annual general meeting may be called on not less than 14 clear days’ notice.
16 To consider and if thought fit to pass the following resolution as a special resolution:
That, with effect from the conclusion of the Annual General Meeting, the draft Articles of Association in the form produced to the Annual
General Meeting, and initialled by the Chairman of the meeting for the purpose of identification, be approved and adopted as the Articles of
Association of the Company in substitution for and to the exclusion of all existing Articles of Association.
By order of the Board
CETC (Nominees) Limited
Company Secretary
12 May 2023
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155
Notice of Annual General Meeting
Notes:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Pursuant to regulation 41 of the Uncertificated Securities Regulations 2001, the Company has specified that only those shareholders on the register of
members of the Company at close of business on 14 June 2023 shall be entitled to vote in respect of the number of shares registered in their name at that
time. Changes to the register of members after 14 June 2023 or, if the meeting is adjourned, in the register of members at close of business on the date which
is two days before the day of the adjourned meeting shall be disregarded in determining the rights of any person to vote at the meeting by proxy.
As at 12 May 2023 (being the latest practicable date prior to the publication of this notice), the Company’s issued share capital comprised 39,976,272 Ordinary
Shares of 25p each. Each share carries one vote except 339,900 shares held as treasury shares and therefore the total number of voting rights in the
Company as at 9.00 a.m. on 20 May 2023 is 39,636,372.
A member of the Company may appoint one or more proxies to vote at the meeting. Where more than one proxy is appointed in relation to the meeting, each
proxy must be appointed to exercise rights attaching to a different share or shares. You may not appoint more than one proxy to exercise rights attached to
any one share. A proxy need not be a member of the Company. Members are encouraged to appoint the Chairman of the meeting as their proxy.
The instrument appointing a proxy must be deposited at the office of the Registrar by 9.30 a.m. (UK time) on 14 June 2023 not less than forty-eight hours
before the time appointed for holding the meeting (or any adjournment thereof).
In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the appointment submitted by the most senior holder
will be accepted. Seniority is determined by the order in which the names of the joint holders appear in the Company’s register of members in respect of the
joint holding (the first-named being the most senior).
CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for the annual general meeting
to be held on 16 June 2023 and any adjournment thereof by using the procedures described in the CREST Manual on the Euroclear website
(www.euroclear.com/CREST). CREST personal members or other CREST sponsored members and those CREST members who have appointed a voting
service provider should refer to their CREST sponsor or voting service provider, who will be able to take the appropriate action on their behalf. In order for a
proxy appointment or instruction made using the CREST service to be valid, the appropriate CREST message (a “CREST Proxy Instruction”) must be properly
authenticated in accordance with Euroclear’s specifications and must contain the information required for such instructions, as described in the CREST
Manual. All messages relating to the appointment of a proxy or an instruction to a previously appointed proxy must be transmitted so as to be received by
Computershare Investor Services PLC [CREST ID: 3RA50] by 9.30 a.m. on 14 June 2023. It is the responsibility of the CREST member concerned to take
such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time. In this connection, CREST
members and, where applicable, their CREST sponsors or voting service providers are referred, in particular, to those sections of the CREST Manual
concerning practical limitations of the CREST system and timings. The Company may treat a CREST Proxy Instruction as invalid in the circumstances set out
in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
You may submit your proxy electronically using the link https://www-uk.computershare.com/investor/. If not already registered, you will need your Shareholder
Reference Number (“SRN”) which is detailed on your share certificates.
The statement of the rights of shareholders in relation to the appointment of proxies does not apply to a person who receives this notice of general meeting
as a person nominated to enjoy “information rights” under section 146 of the Companies Act 2006. If you have been sent this notice of meeting because you
are such a nominated person the following statements apply: (i) you may have a right under an agreement between you and the registered shareholder by
whom you were nominated to be appointed (or to have someone else appointed) as a proxy for this general meeting and (ii) if you have no such a right, or do
not wish to exercise it, you may have a right under such an agreement to give instructions to that registered shareholder as to the exercise of voting rights.
Nominated persons should contact the registered member by whom they were nominated in respect of these arrangements.
A member of the Company which is a corporation may authorise a person or persons to act as its representative(s) at the meeting. In accordance with the
provisions of the Companies Act 2006, each such representative may exercise (on behalf of the corporation) the same powers as the corporation could
exercise if it were an individual member of the Company, provided that they do not do so in relation to the same shares. It is no longer necessary to nominate
a designated corporate representative.
10. Members satisfying the requirements of section 527 of the Companies Act 2006 may require the Company to publish on a website a statement by them (at
the Company’s cost) relating to the audit of the Company’s accounts which are being laid before this meeting (including the auditor’s report and the conduct
of the audit) or, where applicable, any circumstances connected with an auditor of the Company ceasing to hold office since the previous general meeting at
which accounts were laid. Should such a statement be received, it will be published on the Company’s website at https://www.angloeastern.co.uk/. In those
circumstances the Company would be under an obligation to forward a copy of the statement to the auditor forthwith and the statement would form part of the
business which may be dealt with at this meeting.
11.
Shareholders are welcomed to submit questions to the Board by email to datojohnlim@angloeastern.co.uk by 14 June 2023 and they will be answered after
the AGM or at the AGM for those shareholders who are in attendance. The Company must cause to be answered any such questions relating to the business
being dealt with at the meeting but no such answer need be given if (a) to do so would interfere unduly with the preparation of the meeting or involve the
disclosure of confidential information, (b) the answer has already been given on a website in the form of an answer to a question, or (c) it is undesirable in the
interests of the Company or the good order of the meeting that the question be answered.
12.
A copy of this notice and the other information required by section 311A of the Companies Act 2006 can be found at https://www.angloeastern.co.uk/.
Annual Report 2022 | Anglo-Eastern Plantations Plc
156
Notice of Annual General Meeting
13
Resolution 16 proposes that the Company's articles of association (the "Existing Articles of Association") be replaced by new articles of association (the "New
Articles"). In accordance with section 21 of the Companies Act 2006 ("CA 2006"), shareholder approval will be sought for the adoption of the New Articles by
way of special resolution. The changes to the Existing Articles of Association which will result from the adoption of the New Articles are the following (in
addition to minor amendments for numbering, grammatical or typographical issues):
1.
2.
3.
Article 6
Additional provisions have been inserted to allow the Company to enforce the provisions of the Uncertified Securities Regulations 2001.
Article 26
The interest rate payable on unpaid calls has been amended to the rate stated in the terms of allotment or in the notice of the call. If there is no rate
specified, then the Board shall have the right to decide up to the higher of 5% or the appropriate rate (as defined in CA 2006).
Article 50
The provisions relating to untraced shareholders and the sale of shares have been amended to provide for reasonable efforts to trace a member and to
remove the requirement to advertise in a national newspaper to trace a shareholder, and also to provide for the Company to forfeit sale proceeds after 2
years for sale.
4. Articles 54 and 64-65 and 68-69
5.
6.
7.
8.
9.
Additional language has been inserted to facilitate a combined physical and electronic meeting if required.
Article 60
The requirement to advertise a change of place or time of a meeting has been amended to give the board discretion as to how to advertise the change.
Article 61
Additional language has been inserted to enable satellite meetings to be held.
Article 62
The power to restrict entry on health and safety grounds has been included.
Article 98
Increasing the total aggregate which may be paid to non-executive directors by way of Directors' fees from £100,000 to £250,000.
Article 133 and 134
The requirement to keep hard copy books and records has been deleted and the provisions regarding company registers brought up-to-date
10. Article 143
The provisions regarding unclaimed dividends have been amended to give the Company more flexibility to treat a dividend as unclaimed.
14.
15.
16.
If you are in any doubt as to any aspect of Resolutions 12 to 16 or as to the action you should take, you should immediately take your own advice from a
stockbroker, solicitor, accountant or other independent financial advisor authorised under the Financial Services and Markets Act 2000. The Board believes
that these Resolutions are in the best interests of the Company and shareholders as a whole.
If you have sold or otherwise transferred all your shares in the Company, please hand this document and the accompanying form of proxy to the purchaser
or transferee, or to the bank, stockbroker or other agent through whom the sale or transfer was effected, for transmission to the purchaser or transferee. If
you sell or have sold or otherwise transferred only part of your holding of existing shares please consult the bank, stockbroker or other agent through whom
the sale or transfer was effected.
The following documents are available for inspection by members at the registered office of the Company during normal business hours (except Bank Holidays)
and at the place of the meeting not less than 15 minutes prior to and during the meeting. The documents can also be obtained by email to
datojohnlim@angloeastern.co.uk:
(a) a copy of the Executive Director’s service agreement;
(b) copies of Non-Executive Directors’ letters of appointment;
(c)
relationship agreement with the majority shareholder;
(d) a copy of the Company’s existing Articles of Association; and
(e) a copy of the New Articles marked to show all the changes (as described at note 13 above), as required by Listing Rule 13.8.10.
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157
Company addresses
London Office
Anglo-Eastern Plantations Plc
Quadrant House, 6th Floor
4 Thomas More Square
London E1W 1YW
United Kingdom
Tel: 44 (0)20 7216 4621
Fax: 44 (0)20 7767 2602
Malaysian Office
Anglo-Eastern Plantations Management Sdn Bhd
7th Floor, Wisma Equity
150 Jalan Ampang
50450 Kuala Lumpur
Malaysia
60 (0)3 2162 9808
Tel:
Fax: 60 (0)3 2164 8922
Indonesian Office
PT Anglo-Eastern Plantations Management Indonesia
3rd Floor, Wisma HSBC, Jalan Diponegoro, Kav 11
Medan 20152
North Sumatera
Indonesia
Tel: 62 (0)61 452 0107
Fax: 62 (0)61 452 0029
Secretary and registered office
Anglo-Eastern Plantations Plc
(Number 1884630)
(Registered in England and Wales)
CETC (Nominees) Limited
Quadrant House, 6th Floor
4 Thomas More Square
London E1W 1YW
United Kingdom
Tel: 44 (0)20 7216 4600
Fax: 44 (0)20 7767 2602
Company website
https://www.angloeastern.co.uk/
Company advisers
Auditor
BDO LLP
55 Baker Street
London W1U 7EU
United Kingdom
Principal Bankers
National Westminster Bank Plc
Liverpool Street Station
216 Bishopsgate
London EC2M 4QB
United Kingdom
The Hong Kong and Shanghai Banking Corporation
Limited
Wisma HSBC
Jalan Diponegoro, Kav 11
Medan 20152
North Sumatera
Indonesia
PT Bank DBS Indonesia
Uniplaza Building
Jalan Letjen MT Haryono A-1
Medan 20231
North Sumatera
Indonesia
RHB Bank Bhd
Podium Block, Plaza OSK
Jalan Ampang
50450 Kuala Lumpur
Malaysia
Registrars
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
United Kingdom
Solicitors
Withers LLP
20 Old Bailey
London EC4M 7AN
United Kingdom
Broker
Panmure Gordon (UK) Limited
40 Gracechurch St
London EC3V 0BT
United Kingdom
158