2018 Interim Report & Financial Statements (unaudited)

INTERIM
REPORT
For the six months ended 30 June 2018
 The Group has continued to
implement its strategy to focus
INTEGRITY on developing and operating
The Group is a reliable partner majority-held plantations.
and employer with a reputation
for keeping its word and not
tolerating any form of bribery or
corruption.

TEAMWORK
We are open about our challenges
and solve them together.

EXCELLENCE
The Group aspires to the quality
of its output and management of
its plantations being a reference
point for the industry.
FINANCIAL HIGHLIGHTS
AS AT 30 JUNE 2018

Strong increase in crop as plantings mature and

Bumi Mas enters Group

23% increase in crude palm oil production

10% reduction in average price of crude palm oil

to US$663 per tonne

Operating profit US$10.7 million, down

US$6.9 million of which US$4.1 million unrealised
foreign exchange loss

Oil extraction remains at good levels

1,090 hectares of new planting, including

smallholders

Interim dividend of 5.00 pence per share

(2017 – 5.00 pence per share)

CONTENTS
3 Group highlights
4 The palm-oil market
6 Results for the period
10 Current trading and prospects

FINANCIAL STATEMENTS
12 Unaudited consolidated income statement
13 Unaudited consolidated balance sheet
14 Unaudited statement of changes in consolidated total equity
15 Unaudited consolidated cash-flow statement
16 Notes to the interim statements

OTHER INFORMATION
20 Officers, professional advisers and representatives

1
 M.P. EVANS GROUP PLC
INTERIM REPORT 2018

2

GROUP HIGHLIGHTS
The Group’s strategy is to maintain steady expansion of its majority-owned
Indonesian palm-oil areas in a sustainable and cost-effective manner.
Profit for the first half of 2018 was
US$5.8 million against US$82.4 million
for the first half of 2017. The main
reason for the difference is that
the result for 2017 included a profit
of US$68.0 million relating to the
disposal of the Agro Muko joint
venture. Operating profit in the first
half of 2018 was US$10.7 million
compared with US$17.6 million in
2017, mostly reflecting an unrealised
exchange rate loss as the Indonesian
Rupiah weakened against the
US Dollar.
A substantial growth in crop led to
a 23% increase in production of
crude palm oil (“CPO”) and an even
greater increase in production
of palm kernels. However, this
underlying increase in production
was more than offset by a 10% fall
in the commodity price of CPO and
that of palm kernels, and an increase
in the Group’s stocks during the
first half of 2018. This contrasted
with a reduction in stocks during
the equivalent period in 2017. Profit
margins from the Group’s mills
remained at good levels, similar to
those in 2017.
Oil-palm fresh fruit bunches (“ffb”)
on the Group’s own areas increased
by 27% to 270,700 tonnes, those
in the smallholder co-operatives
by 40% to 72,400 tonnes. This
increase included the contribution
of the Bumi Mas project acquired in
December 2017. The general increase
in crops throughout South East Asia
resulted in some pressure on
prices. The average price of CPO
(cif Rotterdam) was US$663 per tonne
during the first half of 2018, US$72
(or 10%) lower than in the same
period in 2017.
The Group has continued to
implement its strategy to focus on
developing and operating majority-
held plantations. At the beginning
of January 2018, it took operational
control of the estates at Bumi Mas
acquired at the end of December
2017. The plantings here have
excellent potential. However, as can
occur, introduction of the Group’s
management led to some disruption
as the workforce was required to
adapt to the Group’s high agronomic
and operating standards. A labour
dispute was successfully settled
and the estate is being brought up
to Group standards. This affected
production during the first half of
2018, but crop is projected to rise
strongly during the second half
of the year. Bumi Mas is expected
quickly to contribute to the
anticipated acceleration of future
growth in Group crops, currently
led by its existing young projects in
Bangka and at Kota Bangun.
In Musi Rawas, there has been
continued good progress with new
planting. A total of 980 hectares were
planted, 690 of which were for the
Group and 290 for the smallholder
co-operatives. Planting has reached
a conclusion in Bangka. Whilst the
Group will continue opportunistically
to acquire incidental hectarage, the
GROUP HIGHLIGHTS
planting on this project can now be
considered complete. Also in Kota
Bangun, planting of the Group’s
original area is all but complete, but
here the Group will be able to plant
a small additional area recently
acquired nearby. In total, during the
first half of 2018 the Group newly
planted 760 hectares for itself and
330 hectares for smallholder
co-operatives. At the end of June 2018,
the Group operated 37,800 hectares
of oil palm and a further 11,700
hectares on behalf of smallholder
co-operatives attached to its
projects: a total of 49,500 hectares.
DIVIDEND
The board proposes to pay an
interim dividend of 5.00 pence per
share. It has previously announced
its intention to increase or at least
to maintain the level of normal
dividends. Hence, barring unforeseen
circumstances, shareholders can
expect to receive total dividends of at
least 17.75 pence per share in respect
of the current year. The board
believes the anticipated increase in
yield from its young plantations, as
well as the addition of Bumi Mas, is
the basis for sustained future crop
and revenue growth.
3
 M.P. EVANS GROUP PLC
INTERIM REPORT 2018
THE PALM-OIL The CPO price (cif Rotterdam) closed
the year 2017 at US$674 per tonne.
MARKET The price then continued to move
in a corridor between US$650 and
US$700 per tonne for the first quarter
On average, the price of 2018. However, a rebound in
of CPO during the production of palm oil in South East
first half of 2018 was Asia and plentiful supply amongst
all the world’s major vegetable oils
US$663 per tonne led to a weakening of future price
compared with expectations. Excepting a rally during
US$735 during the the first part of May, the CPO price
first half of 2017. then fell from US$669 per tonne
at the beginning of the second
quarter to US$610 per tonne at the
end of June. On average, the price
of CPO during the first half of 2018
was US$663 per tonne compared
with US$735 during the first half of
2017: a 10% fall. Notwithstanding
significantly increased production,
4
the low price of CPO and a
pronounced discount to soybean
oil led to palm-oil stocks falling by
some 5% during the period. Since
June 2018, the CPO price has further
weakened before recovering to
around US$560 per tonne.
During the first half of 2018, the price
of palm kernels was much lower than
during the equivalent period in 2017.
This price movement reflects the
unusual conditions for palm kernels
– low stocks and a shortage of its
main competitor, coconut oil – that
persisted throughout much of 2017,
notably in the early months of that
year. The price of palm kernels fell
sharply from March 2018 as supplies
increased with the burgeoning global
ffb crop.
 THE PALM-OIL MARKET

CRUDE-PALM-OIL PRICE
1000
US$ per tonne
cif Rotterdam
900

800

700

600

500

400
2014 2015 2016 2017 2018

Source: Oil World

5
 M.P. EVANS GROUP PLC
INTERIM REPORT 2018

RESULTS FOR THE PERIOD

CROPS
The acceleration in the Group’s
crop growth that began in 2017
has continued into 2018, gathering
momentum from the first to the
second quarter of the year. In the
first half, crops from the Group’s own
estates increased by 19%, in addition
to which the Group added, for the
first time, crops from Bumi Mas with
the result that its own crop increased
in total by 27% to 270,700 tonnes
compared with 213,800 tonnes in the
first half of 2017.
Performance has been strong across
the Group’s estates (see table below).
As well as adding the crop from Bumi
Mas, the Group has begun harvesting
in its Musi Rawas project in South
Sumatra. The only area in which crop
has fallen is Simpang Kiri, where
the Group is coming to the end of a
planned replanting programme. This
sacrifices crop in the short term in
order to reduce the time to when
the Group can benefit from the crop
died away. There is potential to dry spells and so crop here may
improve on this result. The dramatic prove to be more volatile in future
increase in crop put pressure than that in the Group’s other areas.
on harvesting capacity and the Crop from Bumi Mas was below
availability of vehicles to transport potential during the first half of
crop from the field to the mill. The 2018, as the Group took operational
Group plans to construct more bunds control of the estate and began to
(earthen embankments) to protect introduce new operating procedures
the estates from the Mahakam river and new staff and management.
when in flood, and manage the flow
of water through the estate from The level of crop from the
neighbouring higher ground. smallholder co-operatives attached
to the Group’s projects rose even
Crops in Bangka have continued to more strongly than crops in the
rise on the back of excellent rainfall, Group’s own areas: the 72,400 tonnes
but this area is prone to intermittent from these areas was 40% ahead
CROPS
SIX MONTHS SIX MONTHS YEAR
ENDED INCREASE/ ENDED ENDED
30 JUNE 2018 (DECREASE) 30 JUNE 2017 31 DEC 2017
TONNES % TONNES TONNES
Own crops
Kota Bangun 101,200 22 83,200 147,600
Bangka 65,900 51 43,700 90,200
Pangkatan group 69,900 4 67,000 157,400

of younger palms from better seeds. Bumi Mas 17,000 — — —

The Group does not have a mill at Musi Rawas 1,400 — — 400
Simpang Kiri, so is freed from the Simpang Kiri 15,300 (23) 19,900 38,900
consideration of having to maintain 270,700 27 213,800 434,500
mill throughput during a period of
Smallholder
replanting. co-operative crops
Kota Bangun 42,000 26 33,400 60,500
As described in the 2017 annual Bangka 27,800 51 18,400 40,800
report, a rebound in crop was Bumi Mas 2,600 — — —
anticipated in 2018 in the estates
72,400 40 51,800 101,300
at Kota Bangun in East Kalimantan,
which had suffered from an unusual Outside crops
purchased
combination of conditions in 2017
Kota Bangun 5,900 (20) 7,400 16,800
which were not expected to persist.
Crop from these estates increased Bangka 40,900 5 39,000 85,400

by 22% compared with the first half Pangkatan group 6,000 25 4,800 16,100
of 2017, demonstrating that the final 52,800 3 51,200 118,300
echoes of the 2015-16 El Niño have TOTAL CROP 395,900 25 316,800 654,100

6
 RESULTS FOR THE PERIOD

of those in 2017. In addition to the PRODUCTION AND EXTRACTION RATES

increase in crops processed by the
Group from its own areas and those SIX MONTHS SIX MONTHS YEAR
ENDED INCREASE/ ENDED ENDED
of the smallholder co-operatives,
30 JUNE 2018 (DECREASE) 30 JUNE 2017 31 DEC 2017
the Group was able to maintain the TONNES % TONNES TONNES
significant volume of ffb bought in
from third parties, notably in PRODUCTION
Bangka. This mill was designed to Crude palm oil
handle the Group’s and smallholder Kota Bangun (G) 35,700 17 30,600 55,600
co-operatives’ crop at the point these Bangka (G) 31,000 34 23,200 50,000
plantings reach peak yield; until then Pangkatan group (G) 17,500 5 16,700 39,800
the mill has spare capacity, which is 84,200 19 70,500 145,400
being profitably used by buying in Bumi Mas (TP) 4,000 — — —
ffb from third parties. Musi Rawas (TP) 300 — — —
Simpang Kiri (TP) 3,400 (23) 4,400 8,600
Crop on the Group’s 38%-owned
7,700 75 4,400 8,600
associated-company estate, Kerasaan,
91,900 23 74,900 154,000
was 21,600 tonnes during the first
half of 2018, similar to that in the Palm kernels
previous year. Kota Bangun (G) 7,400 40 5,300 10,100
Bangka (G) 7,700 43 5,400 11,700
PRODUCTION Pangkatan group (G) 4,300 8 4,000 9,800
The Group produced 91,900 tonnes of 19,400 32 14,700 31,600
CPO during the first six months of 2018, Bumi Mas (TP) 900 — — —
23% higher than the 74,900 tonnes Musi Rawas (TP) 100 — — —
during the equivalent period in 2017. Simpang Kiri (TP) 800 (11) 900 1,900
The increase in production lagged
1,800 100 900 1,900
that of the increase in crop as a result
21,200 36 15,600 33,500
of slightly lower oil-extraction in the
mill in Kota Bangun, which suffered
from operational challenges as it EXTRACTION RATES % % % %
sought to process burgeoning crop,
Crude palm oil
notably during the second quarter of
Kota Bangun 24.0 (3) 24.7 24.7
2018. These are being addressed and
the mill’s performance has started Bangka 23.0 (1) 23.2 23.1

to improve. The Group monitors Pangkatan group 23.1 (1) 23.3 22.9
the performance of its mills against Bumi Mas 20.4 — — —
those of mills operating nearby, and Musi Rawas 18.0 — — —
the Kota Bangun mill continues to Simpang Kiri 22.3 — 22.3 22.3
perform at a high level compared
Palm kernels
with its peers. This now includes its
Kota Bangun 5.0 16 4.3 4.5
improved rate of kernel extraction.
Bangka 5.8 7 5.4 5.4
The 23.0% oil-extraction rate at the
Pangkatan group 5.6 — 5.6 5.7
Bangka mill continues to be of note
given the very high proportion of Bumi Mas 4.5 — — —

third-party ffb processed during the Musi Rawas 4.8 — — —

period, which is of a significantly Simpang Kiri 5.0 4 4.8 4.9
lower quality than the ffb produced
G = Group mills, TP = third-party mills
under the Group’s control. Unlike in

7
 M.P. EVANS GROUP PLC
INTERIM REPORT 2018
RESULTS FOR THE PERIOD continued
2017, the timing of dispatches from
its bulking facilities meant the Group
increased its stock of CPO and palm
kernels. As a result, not all production
was converted into revenue during
the first half of the year.
Whilst the Group does not have
its own mill at Simpang Kiri, it has
a contract to sell its ffb to a local
mill based on the commodity price
for CPO and an assumed rate of
extraction. To reflect the substance
of this arrangement, oil produced
from Simpang Kiri’s crop has been
included in CPO production, and
the comparative figure for 2017 has
been amended to bring it in line
with the new presentation. A similar
presentation has been adopted
for the early crop in Bumi Mas and
Musi Rawas, which is being sold to
third-party mills prior to the Group
building its own mills in these
locations.
Currently, 81% of the Group’s
production is certified sustainable
palm oil. This percentage will rise
as the Group constructs its own
mills and works with third-party
smallholders wanting to supply
it with ffb to achieve Roundtable
for Sustainable Palm Oil (“RSPO”)
certification. Before the end of 2023,
the Group anticipates that all of its
production, other than from Simpang
Kiri, will be certified sustainable.
COSTS
The cost per tonne of palm product
(CPO and palm kernels) produced
from the Group’s estates was
US$350, lower than the US$380 in
the first half of 2017. The cost of
palm product from ffb both supplied
by smallholders attached to the
Group’s projects and bought in from
independent smallholders is higher
8
AVERAGE SELLING PRICE
SIX MONTHS
ENDED
30 JUNE 2018
US$
Crude palm oil (cif US$ 663
Rotterdam)
Palm-kernel oil US$ 1,030
than this since it is pegged to, and
so varies with, the commodity price
of CPO. Generally, production from
areas controlled by the Group is
less costly than ffb bought from
smallholders, even at the current
low level of CPO prices. The reason
for this is that, as noted in previous
reports, the Group expects unit costs
to fall as the young palms on its new
projects mature and so crop volume
and average bunch weight rise,
irrespective of the CPO price. The
Group’s ability to convert ffb to palm
oil and kernels at a diminishing cost
per tonne demonstrates its position
as an efficient low-cost operator.
MILL-GATE PRICE
As noted above in the section ‘The
palm-oil market’, the average cif
Rotterdam price for the period was
US$663 per tonne, significantly lower
than it had been during the first half
of 2017. Consequently, during the
first half of 2018, the Group actually
received on average US$564 per
tonne of CPO, US$37 less than in the
first half of 2017. During this time,
however, the average sustainability
premium rose a little from US$5 to
US$7 per tonne. For palm kernels,
the Group received US$435 per
tonne, compared with US$490 in the
previous year, reflecting a halving of
the premia available for kernels sold
with ‘sustainability’ certificates issued
by the RSPO as well as the declining
price of palm-kernel oil.
SIX MONTHS YEAR
ENDED ENDED
(DECREASE) 30 JUNE 2017 31 DEC 2017
% US$ US%
(10) US$ 735 US$ 714
(20) US$ 1,286 US$ 1,246
PLANTING
New planting determines the Group’s
capacity to produce crop growth
in the future. Steady progress has
been maintained on planting the
Group’s project in Musi Rawas.
At the end of June 2018, planting
since development began reached
6,100 hectares, of which 4,300
were for the Group and 1,800 for
the smallholder co-operatives. A
further 1,400 hectares were ready
for planting and in addition 3,300
hectares had been surveyed, which
is a necessary precursor to the land
being available for planting. The
Group would typically expect more
than two-thirds of this last figure
eventually to be planted. In Bangka,
110 hectares were planted in the first
half bringing planting on this project
to a conclusion. In North Sumatra,
260 hectares were replanted.
The situation in respect of planting
on behalf of smallholder
co-operatives is similar to that of
the Group: a total of 330 hectares
were planted. Of these, 290 hectares
were in Musi Rawas and 40 in
Bangka. Altogether, therefore, the
Group newly planted 1,090 hectares
for itself and its smallholders. In the
Group’s own areas and in those
of its associated smallholder
co-operatives, planting is rigorously
carried out in compliance with
RSPO standards to ensure that it is
sustainable.

In Bangka, the Group’s smallholder
co-operatives have received land
lease certificates (‘HGUs’) for
1,810 hectares.
NEW LAND
The Group is exploring the
acquisition of additional hectarage
close to its existing projects to
bring them to an optimal size. The
Group’s experience is that 10,000
hectares of oil palm with a 60-tonne
mill provides a unit which is both
big enough to provide economies
of scale in production and
administration, and small enough
to allow the careful scrutiny by field
management needed to maintain
high standards. The Group’s projects
in Bangka and Musi Rawas, including
smallholder areas, are of this size
and the board is actively seeking to
extend the Kalimantan project from
the current 15,000 hectares to the
equivalent of two 10,000-hectare
units. More widely, given the relative
scarcity of good plantation land,
the board remains open to any
opportunities that may arise to
acquire high-quality developed, or
partially-developed, plantations of
an optimal size and in a suitable
location that meet its operational
and sustainability criteria. The
Group has zero net gearing and the
strength of its balance sheet allows
orderly expansion of this kind in line
with its strategy.
PROFIT
As a result of the operational
outcomes described above, gross
profit for the first half of 2018 was
US$14.6 million, US$2.6 million lower
than the US$17.2 million recorded
for the same period in 2017. Profit
from continuing operations for the
period was US$5.8 million, US$8.5
million lower than that recorded for
the first half of 2017. This reduction
took account of both a movement in
exchange rate loss of US$4.1 million
RESULTS FOR THE PERIOD
and a deferred-tax write-off of
US$2.7 million due to the expiry
of historical Indonesian corporate
income tax losses.
ASSOCIATED COMPANY:
MALAYSIA
The Group’s share of the loss arising
in Bertam Properties Sdn. Berhad
(“Bertam Properties”) was US$0.1
million compared with a profit for
the equivalent period in 2017 of
US$0.8 million. The result for 2018
reflects a slowdown in the Malaysian
property market that predated recent
elections. The figure for 2017 has been
restated following the adoption of
the mandatory accounting standard
IFRS15, resulting in an increase of
reported profit of US$1.0 million. This
arises from recognising the profit
from development in stages during
construction rather than delaying
recognition of the whole profit until
a property is sold (see note 3).
9
 M.P. EVANS GROUP PLC
INTERIM REPORT 2018
CURRENT TRADING AND
PROSPECTS
The Group’s crops continue to increase as a result
of their young average age and the increasing
maturity of the palms on the projects in Bangka
and Kalimantan.
Since the end of June, CPO has
largely traded between US$565 and
US$595 per tonne. The price was
slightly stronger than this in the first
two weeks of July and slightly weaker
in the last two weeks of August,
before reaching a level of US$560 per
tonne at the beginning of September.
The price in forward markets
suggests a gradual increase in price
though the remainder of the year.
The Group’s crops continue to
increase as a result of their young
average age and the increasing
maturity of the palms on the projects
in Bangka and Kalimantan. The
average age of the Group’s palms
is now 7 years. Bumi Mas is already
adding to the Group’s production
and, following resolution of the
operational disruption that occurred
during the first half of 2018, this
contribution is expected to increase.
The Group’s crops doubled between
2010 and 2016 and, given the young
age and size of the Group’s planted
10
hectarage, it is anticipated crops will
double again between 2016 and 2020.
The increasing maturity of all the
Group’s newer projects and good
progress on planting in South
Sumatra provide the basis for
considerable future crop growth,
and hence rising revenue, even
without the acquisition of any further
hectarage. The Group anticipates
increasing production of certified
sustainable palm oil as it completes
the development of its new projects.
The board remains confident that
the fundamentals of the palm-oil
market continue to be encouraging.
Vegetable oil is a basic foodstuff and
increasing demand from a growing
world population looks likely to
persist. Palm oil delivers by far the
highest yield per hectare of all the
vegetable oils and has the lowest
cost of production. It is therefore well
placed, long term, to benefit from the
likely future increase in demand.
1. PANGKATAN GROUP
7,400 hectares
Group planted area: 7,000 hectares
Grouping of three estates
(Pangkatan, Bilah, Sennah) whose
fruit is processed in a 40-tonne
mill built on Pangkatan in 2005.
Combination of a long-established,
mature (ex-rubber) oil-palm estate
(Pangkatan), and land acquired or
planted over the last 30 years (Bilah
and Sennah).
5. MUSI RAWAS
10,000 hectares
Group planted area: 4,300 hectares
Smallholder co-operatives planted
area: 1,800 hectares
Located in South Sumatra province
near the town of Lubuk Linggau, the
project was started in 2012. Much
had previously been planted with
smallholders’ rubber, which had
been abandoned. The Group began
planting oil palm at the end of 2014,
and harvesting started in 2017.
6. KOTA BANGUN
ESTATES
16,000 hectares
Group planted area: 10,600 hectares
Smallholder co-operatives planted
area: 4,500 hectares
Located in East Kalimantan,
close to Kota Bangun and next
to the Mahakam River, the land
was acquired in 2006. The first
areas planted started production
during 2010; a 60-tonne mill
was commissioned in December
2012, and a second mill will be
commissioned in early 2020.
 CURRENT TRADING AND PROSPECTS

2. KERASAAN 3. SIMPANG KIRI 4. BANGKA

Planted area: 2,300 hectares
Group minority share: 38%
Mature (ex-rubber) oil-palm estate
near the town of Pematangsiantar in
North Sumatra. Fresh fruit bunches
are processed in the neighbouring
Bukit Marajah mill, owned by the
SIPEF Group - also the majority
shareholder in Kerasaan.
2,600 hectares
Group planted area: 2,400 hectares
Mature oil-palm estate in the
province of Aceh, near the border
with North Sumatra, which was
acquired in the early 1980s.
Fresh fruit bunches are processed in
a nearby third-party mill.
10,000 hectares
Group planted area: 6,100 hectares
Smallholder co-operatives planted
area: 3,900 hectares
Located on the island of Bangka,
the land was acquired in 2005.
The first areas planted started
production during 2009. A 45-tonne
mill with composting facility and
bio-gas plant was commissioned in
May 2016.

8
3 Malaysia
Medan
2
1 Kuala Lumpur

Singapore
7
Sumatra 6

4 Kalimantan
Samarinda
Bangka
5 Island

Jakarta

Indonesia

7. BUMI MAS
10,000 hectares
Group planted area: 7,500 hectares
Smallholder co-operatives planted
area: 1,400 hectares
Located in East Kalimantan,
north-east of Sangatta next to
the Manubar River. The land was
acquired in 2017. It was largely
planted in 2012-14, with the first
harvesting taking place during 2015.
8. BERTAM PROPERTIES AND BERTAM ESTATE
Bertam Properties: 285 hectares (Group minority share: 40%)
Bertam Estate: 70 hectares
This land was previously the Group’s Bertam Estate, most of which was sold
into a joint venture, Bertam Properties, with two Malaysian partners. Starting
in 1992, the area has been developed into a new township. Bertam Properties’
remaining developable land amounts to 181 hectares. Both Bertam Properties
and Bertam Estate have significant value as property-development land.

11
 M.P. EVANS GROUP PLC
INTERIM REPORT 2018

UNAUDITED CONS0LIDATED INCOME STATEMENT

For the six months ended 30 June 2018

SIX MONTHS SIX MONTHS YEAR

ENDED ENDED ENDED
30 JUNE 30 JUNE 31 DECEMBER
2018 2017* 2017*
Note US$’000 US$’000 US$’000

Continuing operations
Revenue 4 53,784 57,505 116,536
Cost of sales (39,188) (40,294) (80,290)
Gross profit 4 14,596 17,211 36,246
Gain on biological assets 85 255 47
Foreign-exchange (losses)/gains (2,612) 1,471 365
Other administrative expenses (1,697) (1,445) (3,068)
Other income 329 129 360
Operating profit 10,701 17,621 33,950
Finance income 288 894 2,147
Finance costs (904) (514) (1,027)
Group-controlled profit before taxation 10,085 18,001 35,070
Tax on profit on ordinary activities (4,500) (4,807) (11,244)
Group-controlled profit after tax 5,585 13,194 23,826
Share of associated companies’ profit after tax 4 225 1,159 3,205
Profit for the period on continuing operations 5,810 14,353 27,031
Profit for the period from discontinued operations 9 — 68,018 68,018
Profit for the period 5,810 82,371 95,049

Attributable to:
Owners of M.P. Evans Group PLC 4,976 80,587 91,129
Non-controlling interests 834 1,784 3,920
5,810 82,371 95,049

US cents US cents US cents

Continuing operations
Basic earnings per 10p share 9.1 22.7 41.8
Diluted earnings per 10p share 9.0 22.6 41.6

Continuing and discontinued operations

Basic earnings per 10p share 9.1 145.3 164.9
Diluted earnings per 10p share 9.0 144.8 164.1

Pence Pence Pence

Basic earnings per 10p share

Continuing operations 6.6 18.0 32.4
Continuing and discontinued operations 6.6 115.3 127.8

* restated for the introduction of IFRS15 – see note 3

12
UNAUDITED CONS0LIDATED BALANCE SHEET
As at 30 June 2018

30 JUNE 30 JUNE 31 DECEMBER

2018 2017* 2017*
Note US$’000 US$’000 US$’000

Non-current assets
Goodwill 11,767 1,157 12,228
Property, plant and equipment 327,967 212,015 321,558
Investments in associates 23,786 22,338 23,503
Investments 53 50 53
Deferred-tax asset 10,004 12,960 12,280
Trade and other receivables 6,740 3,817 5,465
380,317 252,337 375,087

Current assets
Biological assets 1,928 1,831 1,843
Inventories 13,249 11,294 10,462
Trade and other receivables 37,378 20,815 34,368
Current-tax asset 3,982 4,396 4,614
Current-asset investments 6,255 14,326 6,913
Cash and cash equivalents 35,111 148,542 113,910
97,903 201,204 172,110
Total assets 478,220 453,541 547,197

Current liabilities
Borrowings 8,727 6,500 9,159
Trade and other payables 13,700 11,071 65,194
Current-tax liabilities 1,341 1,023 5,317
23,768 18,594 79,670
Net current assets 74,135 182,610 92,440

Non-current liabilities
Borrowings 26,144 19,290 30,285
Deferred-tax liability 11,325 487 11,813
Retirement-benefit obligations 8,715 6,541 8,434
46,184 26,318 50,532
Total liabilities 69,952 44,912 130,202
Net assets 408,268 408,629 416,995

Equity
Share capital 7 9,241 9,302 9,255
Other reserves 55,244 53,364 54,382
Retained earnings 316,909 320,955 323,397

Equity attributable to the owners of M.P. Evans Group PLC 381,394 383,621 387,034
Non-controlling interests 26,874 25,008 29,961
Total equity 408,268 408,629 416,995

* restated for the introduction of IFRS15 – see note 3

13
 M.P. EVANS GROUP PLC
INTERIM REPORT 2018

UNAUDITED STATEMENT OF CHANGES IN

CONS0LIDATED TOTAL EQUITY
For the six months ended 30 June 2018

SIX MONTHS SIX MONTHS YEAR

ENDED ENDED ENDED
30 JUNE 30 JUNE 31 DECEMBER
2018 2017* 2017*
Note US$’000 US$’000 US$’000

Profit for the period 5,810 82,371 95,049

Other comprehensive gain for the period 10 587 1,047
Total comprehensive income for the period 5,820 82,958 96,096

Issue of share capital 159 119 506

Purchase of own shares (1,790) (4,766) (9,188)
Dividends – Company shareholders 5 (9,221) (16,334) (19,995)
Dividends – non-controlling interests (3,578) — —
Credit to equity for equity-settled share-based payments 226 8 229
Group reconstruction — — (52)
Minority interest arising on acquisition (343) — 2,755

Transactions with owners (14,547) (20,973) (25,745)

Balance at 1 January 416,995 346,644 346,644

Balance at period end 408,268 408,629 416,995

* restated for the introduction of IFRS15 – see note 3

14
UNAUDITED CONS0LIDATED
CASH-FLOW STATEMENT
For the six months ended 30 June 2018

SIX MONTHS SIX MONTHS YEAR

ENDED ENDED ENDED
30 JUNE 30 JUNE 31 DECEMBER
2018 2017 2017
Note US$’000 US$’000 US$’000

Net cash generated/(used) by operating activities 8 2,147 (2,000) 20,723

Investing activities
Purchase of property, plant and equipment (13,908) (16,287) (29,533)
Interest received 288 894 2,147
Proceeds on disposal of property, plant and equipment 446 267 67
Purchase of subsidiary undertaking (49,167) — (39,589)
Disposal of associated undertaking — 99,769 99,769
Net cash (used)/generated by investing activities (62,341) 84,643 32,861

Financing activities
Repayment of borrowings (4,414) (4,573) (9,552)
Decrease/(increase) in current-asset investment bank
deposits 658 (64) 7,349
Dividends paid to Company shareholders (9,221) (16,334) (19,995)
Dividends paid to non-controlling interests (3,578) — —
Exercise of Company share options 159 119 506
Buyback of Company shares (1,790) (4,766) (9,188)
Net cash used by financing activities (18,186) (25,618) (30,880)

Net (decrease)/increase in cash and cash equivalents (78,380) 57,025 22,704

Cash and cash equivalents at 1 January 113,910 91,405 91,405

Effect of foreign-exchange rates on cash and cash
equivalents (419) 112 (199)
Net cash and cash equivalents at period end 35,111 148,542 113,910

15
 M.P. EVANS GROUP PLC
INTERIM REPORT 2018

NOTES TO THE INTERIM STATEMENTS

For the six months ended 30 June 2018

1 General information
The financial information for the six-month periods ended 30 June 2018 and 2017 has been neither audited nor reviewed by
the Group’s auditors and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.
The financial information for the year ended 31 December 2017 is abridged from the statutory accounts. The 31 December 2017
statutory accounts have been reported on by the Group’s auditors, PricewaterhouseCoopers LLP, and have been filed with the
Registrar of Companies. The report of the auditors thereon was unqualified and did not contain a statement under section 498(2)
or (3) of the Companies Act 2006, nor did it contain any matters to which the auditors drew attention without qualifying their
audit report.

2 Accounting policies
The consolidated financial results have been prepared in accordance with International Financial Reporting Standards (IFRS and
IFRIC interpretations) issued by the International Accounting Standards Board (IASB) as adopted by the EU, and with those parts of
the Companies Act 2006 applicable to companies preparing accounts under IFRS.

The accounting policies of the Group follow those set out in the annual financial statements at 31 December 2017, with the
exception of the Group’s accounting policy for revenue which has been revised from 1 January 2018 upon adoption of IFRS15
‘Revenue from contracts with customers’. Further details are given in note 3.

3 Revenue and prior period adjustment

Prior to adoption of IFRS15, the Group’s accounting policy was to account for revenue from the sale of crops and produce at the
point of delivery. This continues to be the case following the adoption of the new standard.

The Group’s accounting policy for recognising revenue, and therefore its share of profit, from its property associate, has been
updated. Previously, revenue from construction contracts on developed property was recognised at full completion of a sale.
From 1 January 2018, this continues to be the case for commercial properties. However, in accordance with the five-step model in
IFRS15, for certain residential properties revenue is recognised proportionately over the contract period. A prior period adjustment
has been made to reflect this change in accounting policy using the retrospective method. The impact of the change has been
to increase the Group’s investment in associates and associated reserves at 1 January 2017 by US$2.4 million, and increase the
Group’s share of associated companies’ profit after tax by US$1.0 million and US$0.6 million for the periods ending 30 June 2017
and 31 December 2017 respectively. The corresponding increases in basic earnings per share were 1.9c and 1.1c. Opening reserves at
1 January 2018 have increased by US$3.0 million.

16
 NOTES TO THE INTERIM STATEMENTS

4 Segment information
The Group’s reportable segments are distinguished by location and product: palm oil plantation crops in Indonesia and property
development in Malaysia

PLANTATION PROPERTY
INDONESIA MALAYSIA OTHER TOTAL
US$’000 US$’000 US$’000 US$’000

6 months ended 30 June 2018

Revenue 53,740 — 44 53,784
Gross profit/(loss) 14,633 — (37) 14,596
Share of associated companies’ profit after tax
Kerasaan 344 — — 344
Bertam Properties — (119) — (119)
344 (119) — 225

6 months ended 30 June 2017

Revenue 57,451 — 54 57,505
Gross profit/(loss) 17,231 — (20) 17,211
Share of associated companies’ profit after tax
Kerasaan 405 — — 405
Bertam Properties* — 754 — 754
405 754 — 1,159

Year ended 31 December 2017

Revenue 116,393 — 143 116,536
Gross profit/(loss) 36,256 — (10) 36,246
Share of associated companies’ profit after tax
Kerasaan 1,189 — — 1,189
Bertam Properties* — 2,016 — 2,016
1,189 2,016 — 3,205

* restated for the introduction of IFRS15 – see note 3

5 Dividends

SIX MONTHS SIX MONTHS YEAR ENDED

ENDED ENDED 31 DECEMBER
30 JUNE 2018 30 JUNE 2017 2017
US$’000 US$’000 US$’000

2016 final dividend 12.75p per 10p share — 9,179 9,180

2017 special dividend 10.00p per 10p share — 7,155 7,155
2017 interim dividend 5.00p per 10p share — — 3,660
2017 final dividend 12.75p per 10p share 9,221 — —
9,221 16,334 19,995

Subsequent to 30 June 2018, the board has declared an interim dividend of 5.00p per 10p share. The dividend will be paid on or
after 2 November 2018 to those shareholders on the register at the close of business on 19 October 2018.

17
 M.P. EVANS GROUP PLC
INTERIM REPORT 2018

NOTES TO THE INTERIM STATEMENTS continued

6 Acquisition of subsidiary
On 22 December 2017, the Group acquired 100% of Sunrich Plantations Pte Ltd (“Sunrich”), which in turn owns 95% of the issued
share capital of PT Bumi Mas Agro. Provisional fair values were recognised in the 2017 annual report in respect of the identifiable
assets acquired and liabilities assumed. These provisional amounts have since been updated as set out in the table below:

PROVISIONAL AT UPDATED AT
31 DECEMBER 30 JUNE
2017 ADJUSTMENT 2018
US$’000 US$’000 US$’000

Property, plant and equipment 102,353 5 102,358

Deferred-tax asset 1,333 (348) 985
Current assets 8,731 — 8,731
Current liabilities (5,336) — (5,336)
Bank borrowings (18,667) — (18,667)
Shareholder loans (32,658) (6,514) (39,172)
Deferred-tax liability (11,071) 461 (10,610)
Retirement-benefit obligations (665) — (665)
Minority interest (2,755) 343 (2,412)
Total identifiable assets 41,265 (6,053) 35,212
Goodwill 11,071 (461) 10,610
52,336 (6,514) 45,822

Satisfied by:
Cash 7,442 (6,514) 928
Deferred consideration 44,894 — 44,894
52,336 (6,514) 45,822

Whilst the total amount allocated as payment for the equity of Sunrich reduced by US$6.5 million, the total consideration for
the purchase did not change as there was a corresponding increase in the amount allocated to settle loans from the former
shareholders.

7 Share capital
30 JUNE 30 JUNE 31 DECEMBER 30 JUNE 30 JUNE 31 DECEMBER
2018 2017 2017 2018 2017 2017
NUMBER NUMBER NUMBER US$’000 US$’000 US$’000

Shares of 10p each

At 1 January 54,883,451 55,739,719 55,739,719 9,255 9,366 9,366
Issued 75,000 20,000 95,000 10 2 13
Redeemed (174,464) (523,552) (951,268) (24) (66) (124)
At period end 54,783,987 55,236,167 54,883,451 9,241 9,302 9,255

During the period, as a result of the exercise of share options, the Company issued 75,000 10p shares for US$159,000 cash
consideration. In addition, the Company bought back and cancelled 174,464 10p shares for a total cost of US$1,790,000.

18
 NOTES TO THE INTERIM STATEMENTS

8 Analysis of movements in cash flow

SIX MONTHS SIX MONTHS YEAR ENDED
ENDED ENDED 31 DECEMBER
30 JUNE 2018 30 JUNE 2017 2017
US$’000 US$’000 US$’000

Operating profit 10,701 17,621 33,950

Biological gain (85) (255) (47)
Disposal of property, plant and equipment (7) 39 600
Release of deferred profit (148) (20) (135)
Depreciation of property, plant and equipment 7,070 5,764 11,472
Impairment of investments — 19 20
Retirement-benefit obligation 937 815 1,865
Share-based payments 226 8 229
Dividends from associated companies — 379 2,240

Operating cash flows before movements in working capital 18,694 24,370 50,194
(Increase)/decrease in inventories (2,787) 2,142 4,586
Increase in receivables (4,285) (2,718) (7,258)
Decrease in payables (2,628) (8,337) (6,369)

Cash generated by operating activities 8,994 15,457 41,153

Income tax paid (5,943) (16,943) (19,403)
Interest paid (904) (514) (1,027)
Net cash generated/(used) by operating activities 2,147 (2,000) 20,723

9 Discontinued operations
SIX MONTHS SIX MONTHS YEAR ENDED
ENDED ENDED 31 DECEMBER
30 JUNE 2018 30 JUNE 2017 2017
US$’000 US$’000 US$’000

Agro Muko      
Share of profit after tax — 1,622 1,622
Profit on disposal — 66,396 66,396
— 68,018 68,018

On 17 March 2017, the Group completed the sale of its 36.84% interest in PT Agro Muko. Total sale proceeds were US$99.8 million,
and the Group recorded a profit on disposal of US$66.4 million.

10 Exchange rates
30 JUNE 30 JUNE 31 DECEMBER
2018 2017 2017

US$1=Indonesian Rupiah      
Average 13,766 13,330 13,382
Period end 14,330 13,319 13,568

US$1=Malaysian Ringgit
Average 3.94 4.39 4.30
Period end 4.04 4.29 4.05

£1=US Dollar
Average 1.38 1.26 1.29
Period end 1.32 1.30 1.35

19
 M.P. EVANS GROUP PLC
INTERIM REPORT 2018
OFFICERS, PROFESSIONAL ADVISERS
& REPRESENTATIVES
EXECUTIVE DIRECTORS
Peter E Hadsley-Chaplin,
MA MBA
Chairman
Tristan R J Price, MA MSc FCA
Chief executive
Matthew H Coulson, BA FCA
Finance director
NON-EXECUTIVE DIRECTORS
Richard M Robinow, MA *†
Senior independent
Jock M Green-Armytage,
BA MBA *†
Independent, chair of audit and
remuneration committee
Philip A Fletcher, FCA *
Bruce C J Tozer, BSc MSc MBA *†
Independent
* Member of the audit committee
† Member of the remuneration
committee
20
SECRETARY AND REGISTERED OFFICE
Katya Merrick
3 Clanricarde Gardens, Tunbridge Wells, Kent TN1 1HQ
Company number: 1555042
t +44 (0)1892 516 333
e katya.merrick@mpevans.co.uk
w www.mpevans.co.uk
INDONESIAN REGIONAL OFFICE
PT Evans Indonesia
Gedung Graha Aktiva, Suite 1001, Jl HR Rasuna Said Blok X-1 Kav 03,
Jakarta 12950
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
1 Embankment Place, London WC2N 6RH
REGISTRARS
Computershare Investor Services PLC
The Pavilions, Bridgwater Road, Bristol BS99 6ZZ
t +44 (0)3707 071 176
f +44 (0)3707 036 101
w www.computershare.com
PRINCIPAL BANKERS
Bank CIMB Niaga
Graha CIMB Niaga Lt.11, Jalan Jend. Sudirman Kav.58, Jakarta 12190,
Indonesia
AmBank Group
55 Jalan Raja Chulan, 50200 Kuala Lumpur, Malaysia
NatWest
89 Mount Pleasant Road, Tunbridge Wells, Kent TN1 1QJ
NOMINATED ADVISER AND JOINT BROKER
Peel Hunt LLP
Moor House, 120 London Wall, London EC2Y 5ET
JOINT BROKER
finnCap
60 New Broad Street, London EC2M 1JJ
SOLICITORS
Hogan Lovells International LLP
Atlantic House, 50 Holborn Viaduct, London EC1A 2FG
3 Clanricarde Gardens
Tunbridge Wells
Kent TN1 1HQ
United Kingdom

t +44 (0)1892 516 333

e enquiries@mpevans.co.uk
w mpevans.co.uk