Introduction

IOI Group is one of Malaysia's largest conglomerates, being one of the largest palm oil players
and property development cum investment companies in Malaysia. Originally incorporated in
1969 as Industrial Oxygen Incorporated Sdn. Bhd. Currently, it employs around 30,000 people in
its activities in 25 countries.

IOI Group's plantation arm covers Malaysia and Indonesia with a land bank of more than
230,000 hectares, making it one of the largest plantation owners in the industry. IOI has 90 oil
palm estates in Malaysia and Indonesia with a land bank totaling 217,917 hectares, of which
179,271 hectares have been planted with oil palm. Approximately 64% of the Group’s oil palm
plantation holdings are in East Malaysia, while 24% in Peninsular Malaysia and the remaining
12% in Indonesia. Plantation produce are principally processed by its 15 palm oil mills located in
Malaysia.

IOI's plantation business is a major earner for the conglomerate, providing nearly half of
the group's earnings. IOI Group is engaged in cultivation of oil palm and processing of palm oil
with operations in the full spectrum of the palm oil value chain from the upstream activities of
seed breeding and planting to crop oil extraction to the downstream resource-based
manufacturing activities. The Group is committed to a sustainable relationship with the
environment while conducting its palm oil operations. For 2017, the IOI Group’s plantation
segment reported a higher profit of RM1,230.5 million as compared to RM842.2 million for the
financial year ended 2016. From its annual report, the higher profit reported is due mainly to
higher crude palm oil (“CPO”) and palm kernel (“PK”) prices.