ANGLO-EASTERN PLANTATIONS PLC Anglo-Eastern Plantations Plc
('AEP', 'Group' or 'Company')
Preliminary announcement of results for year ended 31 December 2018
The group comprising Anglo-Eastern Plantations Plc and its subsidiaries (the 'Group'), a major producer of palm oil and rubber with plantations across Indonesia and Malaysia amounting to some 128,200 hectares, has today released its results for the year ended 31 December 2018.
Financial Highlights
2018 $m | 2017 $m | |
Revenue | 250.9 | 291.9 |
Profit before tax: | ||
- before biological asset ('BA') movement | 33.2 | 70.0 |
- after BA movement | 30.9 | 69.7 |
Basic Earnings per ordinary share ('EPS'): | ||
- before BA movement | 32.50cts | 91.80cts |
- after BA movement | 28.79cts | 91.37cts |
Dividend (cents) | 3.0cts | 4.0cts |
Enquiries:
Anglo-Eastern Plantations Plc | |
Dato' John Lim Ewe Chuan | +44 (0)20 7216 4621 |
Panmure Gordon (UK) Limited | |
Dominic Morley | +44 (0)20 7886 2954 |
Chairman's Statement
The Group's fresh fruit bunches ('FFB') production in 2018 was 1.04 million mt, 11.9% higher than the previous year of 929,600mt. The crop production in the Riau region continued to outperform in good weather conditions. An improvement in the evacuation of FFB in Bengkulu together with a higher yield from maturing trees in Kalimantan also contributed to a better harvest. The throughput at the six mills reached an all-time high in 2018 as the Group purchased more external crops in addition to a higher internal production. FFB bought-in from surrounding smallholders was 1.01 million mt, 1% more than 2017 of 998,400mt. The Tasik Raja mill purchased 17% more outside crops as recent replanting exercise has reduced its own internal crops. The mills, as a result, processed 6% more FFB and increased the crude palm oil ('CPO') production by 7% to 418,800 mt (2017: 390,600mt).
Although the Group achieved higher CPO production during the year, revenue and profitability were, however, lower as announced during the year because of the significant drop in CPO price to a three and a half year low due to high inventory across the market. The average CPO price ex-Rotterdam in 2018 was 17% lower at $595/mt, compared to $718/mt in 2017.
The Group's revenue was lower by 14% at $250.9 million, compared to $291.9 million achieved in 2017. The operating profit for the Group in 2018, before BA movement was $30.9 million, 54% lower compared to $66.7 million achieved in 2017. Earnings per share, before BA movement, decreased by 65% to 32.50cts, from 91.80cts in 2017. The Group's operating profit after BA for 2018 was at $28.6 million after a downward BA movement of $2.3 million as compared to 2017 operating profit of $66.4 million after a downward BA movement of $0.3 million.
The Group's new planting including plasma for 2018 totalled 1,563ha compared to 1,807ha last year. The slower rate of planting was due to protracted land compensation negotiations. New planting was also delayed in Kalimantan as the Group awaits permission from the local authority to clear and to plant. The local authority took some time to review the results of the high carbon stock sustainability study which was independently performed to determine areas that cannot be planted with oil palm due to high conservation and high carbon stock values.
The two biogas plants with a combined capacity of 3 megawatt generated over 13,800MWh of electricity in 2018 compared to 11,500MWh last year. The revenue from the sale of surplus electricity to the national grid was $0.86 million, slightly lower than last year of $0.87 million due to a weaker Indonesian Rupiah and the shutdown of a biogas plant in Blankahan for a major overhaul. The maintenance work which took one month was recommended after 25,000 hours of operation. The third biogas plant in Kalimantan has been operating from the first quarter of 2018. The 6.7km of power transmission line jointly funded by the Group and the state electric company has been installed and tested. It expects to sell the electricity after permits for the power generation and supply are issued by the local authority in the first quarter of 2019. The use of clean energy will further reduce the mills' reliance on fossil fuels and improve the Group's carbon footprint.
Despite the volatility of the CPO prices, the Group continues the construction of its seventh mill and fourth biogas plant in North Sumatera as the Group believes its long-term prospects are strong. The earthworks for the mill and biogas plant are in progress. The 60mt/hr mill is estimated to cost approximately $19 million and is expected to be completed in about two years. The biogas plant costing about $3.8 million is expected to be completed by early 2020. In order to ensure that there is no disruption to its operation, the mill in Kalimantan will expand its CPO storage facility from 9,000mt to 13,000mt at a cost of $200,000 in 2019. Bulking silos for storage of kernels will also be expanded in three mills at a cost of $800,000.
The Indian government in January 2019 reduced the import tax on CPO and refined palm oil which made them more competitive against other soft oils. India is the largest consumer of CPO and the reduction of import tax may help to increase the demand which had declined in 2018.
The decision by some members of the European Union ('EU') to ban or phase out the use of palm oil and palm biodiesel is likely to hurt the industry. The adverse perception of palm oil continues to feature in recent years, touching on issues including deforestation, emission of greenhouse gases, planting on peatland and land rights.
Notwithstanding the aforementioned, global demand for palm oil should continue to be strong given the CPO's current attractive price discount to soybean oil.
The Board has declared a final dividend of 3.0cts per share, in line with our reporting currency, in respect of the year to 31 December 2018 (2017: 4.0cts). In the absence of any specific instructions up to the date of closing of the register on 7 June 2019, 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 Annual General Meeting, the final dividend will be paid on 12 July 2019 to those shareholders on the register on 7 June 2019.
On behalf of the Board of Directors, I would like to convey our sincere thanks to our management and all employees of the Group for their dedication, loyalty, resourcefulness, commitment and contribution to the success of 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.
Madam Lim Siew Kim
Chairman
23 April 2019
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 economic and business risks of the Group.
Business Model
The Group will continue to focus on its strength and expertise, which is planting more oil palms and production of CPO. This includes replanting old palms with low yield, 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 way. The Group remains committed to use its available resources to develop the land bank in Indonesia 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 20,000ha per province and a national total of 100,000ha 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 appropriate 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, however, is very much dependent on the CPO price, which is volatile and is determined by supply and demand. 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. Other crops would require up to eight times as much land to produce an equivalent weight of palm oil. It was reported that amongst the major oilseeds, oil palm occupies about 7% of the total agricultural land but contributes more than 30% of the world's supply of oils and fats.
The Group's strategies, therefore, focus on maximising yield per hectare above 22mt/ha, mill production efficiency of 110%, minimising production costs below $300/mtand streamliningestate management. For the year under review, the Group achieved a yield of 19.3mt/ha, 143% mill efficiency and production cost of $284/mt on the Indonesian operations. This compared to 2017 where the Group achieved a yield of 17.9mt/ha, 134% mill efficiency and production cost of $281/mt. 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 achieves 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 plants at all of its mills to trap the methane gas emitted from the treatment of palm mill effluents to generate electrical power and at the same time reduce the consumption of fossil fuel. It plans to sell the surplus electricity and progressively reduce the greenhouse gas emissions per metric ton of CPO produced in the next few years.
The Group will continue to follow-up and offer competitive and fair compensation to villagers so that land can be cleared and be planted.
Financial Review
The financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations (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 their accounts under IFRS.
For the year ended 31 December 2018, revenue for the Group was $250.9 million, 14% lower than $291.9 million reported in 2017 due primarily to lower CPO prices and partly weaker Rupiah.
The Group's operating profit for 2018, before biological asset movement, was $30.9 million, 54% less than $66.7 million in 2017.
FFB production for 2018 was 1.04 million mt, 11.9% higher than the 929,600mt produced in 2017. The yield for 2018 improved due to the strong recovery of production in Riau, improved evacuation of FFB in Bengkulu and a higher crop output from maturing trees in Kalimantan. FFB bought-in from local smallholders in 2018 was 1.01 million mt (2017: 998,400mt), 1% higher compared to 2017. During the year, the Group's mills processed 2.02 million mt of FFB, 6% higher than last year of 1.9 million mt. CPO production, as a result, was 7% higher at 418,800mt, compared to 390,600mt in 2017.
Profit before tax and after BA movement for the Group was $30.9 million, 56% lower compared to a profit of $69.7 million in 2017. The BA movement was a debit of $2.3 million, compared to a debit of $0.3 million in 2017. The BA movement was mainly due to change in FFB price which was lower in 2018. The profit before tax was also affected by an impairment charge on the development cost of the plantation and land amounting to $4.3 million compared to a reversal of impairment amounting to $0.9 million in 2017.
The average CPO price ex-Rotterdam for 2018 was $595/mt, 17% lower than 2017 of $718/mt.
Earnings per share before BA movement decreased by 65% to 32.50cts compared to 91.80cts in 2017. Earnings per share after BA movement decreased from 91.37cts to 28.79cts.
Going Concern
The Group's balance sheet remains strong. As at 31 December 2018, the Group had cash and cash equivalents of $112.2 million (2017: $139.5million) and borrowings of $19.3 million (2017: $27.9million), giving it a net cash position of $92.9 million, compared to $111.6 million in 2017. The net cash flows from operating activities was lower by 67% due mainly to the lower CPO price and higher overseas tax paid. The cash position was also lower in 2018 due to an exchange loss on translation of $8.7 million and repayment of loan. As the CPO prices are projected to perform better in 2019, the Group barring any unforeseen circumstances is expected to generate positive cash flows. The tax recoverable for 2019 amounted to $44.3 million, a 51% increase over the previous year of $29.4 million. The substantial increase is due to the value added tax ('VAT') paid which is refundable by tax authority after tax audit. A detailed description is provided in note 8. For these reasons, the Directors adopt a going concern basis of accounting and believe the Group will continue in operation and meet its liabilities for a period of at least twelve months from the date of approval of the financial statements.
Business Review
Indonesia
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 289,700mt in 2018 (2017: 289,900mt). The yield in North Sumatera improved to 21.1mt/ha from 20.9mt/ha in 2017. While the yield is higher, the replanting of aged palms in North Sumatera has reduced the regional production. During the year another 309 ha of oil palms were replanted in Anak Tasik while 161ha of old rubber trees in Rambung were replaced with oil palm. The average yield in CPA remains low at 17mt/ha as the FFB production during the year was constantly disrupted by floods in 500ha of low laying fields. About 50% of CPA plantation is less than 5 metres above the sea level. Flood mitigation efforts appeared to work as the size of flooded areas were reduced despite a higher rainfall exceeding 5,000mm per annum recorded in 2018. Over 1,500ha of oil palms in HPP suffered from the desiccation of fronds and ganodermacausing a loss of 35,000 trees. The desiccation was caused by a shortage of water from lower rainfall. Building of water gates and canals between the oil palms had helped to ease the problem.
Ganoderma fungusand Upper Stem Rotwhich attack about 7% to 10% of the productive palms in Anak Tasik and HPP remain a serious threat. Water management, good sanitation and high standards of agronomic practices remain the main priority to avoid spreading the diseases, including proper disposal of severely diseased palms after detection. Soil mounding on infected palms was carried out in Rambung to lengthen the economic lifespan of oil palms. Replanting in Anak Tasik will significantly reduce the threat of Ganodermaattack. There was no serious insect damage by the Oryctes beetle,other leaf eating pests, wild animals or rats.
The Blankahan biogas plant sold over 5,700MWh (2017: 6,700 MWh) of surplus electricity and generated $0.42 million in revenue compared to $0.53 million last year. The biogas plant was shut down for one month for a major overhaul after 25,000 hours of operation resulting in lower electricity production. The sales from the biomass plant were higher in 2018 at $0.91 million compared to $0.64 million last year as it enjoyed better prices for its dried long fibres even though it exported 4% less at 6,959mt compared to 7,228mt last year. The lower production was due to the closure of one production line for maintenance.
FFB production in Bengkulu and South Sumatera, which aggregates the estates of Puding Mas ('MPM'), Alno, KKST, ELAP and RAA produced 358,400mt (2017: 334,000mt), 7% higher than 2017. Lower rainfall in 2018 provided opportunities to repair the roads. The Group purchased additional four-wheel drive vehicles and trucks to improve the evacuation of FFB from hilly terrain after some contracts to outsource transportation expired. This improved the crop yield in Bengkulu from 18.1mt/ha to 19.1mt/ha in 2018. In its effort to improve efficiency the management introduced a cut and go harvesting system. The changes were made to speed up the harvest and collection of loose fruits. The yield in South Sumatera averaged 6.7mt/ha in 2018 compared to previous year of 5.2mt/ha due to the low density of 95 stems per ha. Spot planting is planned for more than 5,800ha in 2019 to improve the density to 105 stems per ha. The high gradient in South Sumatera cannot support a higher number of trees per ha. Over 61,000mt of EFB was applied to over 1,000ha of oil palm field to improve the soil condition. The protracted negotiation with the villagers over land compensation will have an effect on the future planting in Bengkulu and South Sumatera.
The MPM biogas plant sold over 8,100MWh of surplus electricity and generated $0.44million in revenue in 2018 compared to 4,800 MWh worth $0.34million in 2017. MPM has applied for certification under International Sustainability and Carbon Certification ('ISCC') for its mill. Certification work is underway and on successful completion will enable the mill to sell its CPO at a premium. The mill at MPM and Sumindo continued to experience high free fatty acids ('FFA') in its CPO production due to transport and workforce problems resulting in late deliveries of FFB to the mills. CPO with high FFA is normally sold at a discount averaging between 10% to 15%. The management team was recently reorganized to deal with these serious issues. During the year over 28,300mt of CPO was sold a discount of $0.98 million due to a high level of FFA.
FFB production in the Riau region, comprising Bina Pitri estates, produced 143,200mt in 2018 (2017: 124,500mt), 15% higher than 2017. Good weather with no prolonged dry months resulted in higher yield of 29.4mt/ha from 25.6mt/ha in 2017. External crop purchase at the mill was on par with last year. Overall CPO production improved by 4% to 72,100mt compared to 69,200mt in 2017.
FFB production in Kalimantan which comprises of the Sawit Graha Manunggal ('SGM') and Kahayan Agro Plantation ('KAP') estates was 222,700mt in 2018 (2017: 158,000mt) 41% higher than 2017 as more trees matured and reached the peak production age. The yield in Kalimantan reached 19.2mt/ha compared to 16.3mt/ha in 2017. Rainfall was moderately lower than last year with no prolonged drought which also contributed to a better harvest. During the year, the Group introduced mechanization in the application of fertilizers using spreader to boost its efficiency. The purchase of external crops in SGM has also improved by 59% from 34,500mt to 55,000mt in 2018 improving the utilization of the mill. Over 45,000mt of EFB was applied to improve the structure of the sandy soil and moisture. The SGM biogas plant has been in operation since early 2018. After successful negotiation with the state electric company to share the cost, the 6.7km of transmission lines was built and completed at a cost of $230,000. The sale of electricity is expected to begin in the second quarter of 2019 after receiving the proper permits and certification. In the year, over 1,400ha of palm trees in KAP matured leading to its first harvest. The FFB from KAP was transported over 600km to SGM mill for processing. However, in the wet months when the journey can take more than two to three days due to flooding and resulting bad roads, KAP will sell the harvest to local millers. CPO sold in Kalimantan fetched a lower price compared to mills in North Sumatera due to higher logistics costs caused by the distance to the refinery and the poor road infrastructure.
During the year a Malaysian based agronomist made monthly field visits to underperforming estates in Indonesia to provide advice on optimizing field disciplines and improving crop yields. The Board believes that the monitoring of field performance more closely has resulted in improvements in the underperforming estates which should further improve the crop yield in the coming years.
Overall bought-in crops for Indonesian operations were 1% higher at 1.01 million mt for the year 2018 (2017: 998,400mt). The average oil extraction rate for our mills improved marginally to 20.7% in 2018 (2017: 20.5%).
Malaysia
FFB production in 2018 was 16% lower at 18,500mt, compared to 21,900mt in 2017. The Malaysian operations continued to face a severe shortage of workers due to difficulty in recruiting foreign workers which hampered harvesting and estate maintenance work such as fertilizing, pruning, weeding and replanting. Despite the increase in wages and various cash incentives introduced by management, the estate continued to lose its foreign workers who left for better wages and working conditions in the city. The shortage of labour is the biggest challenge the industry is facing in Malaysia. The Group recruited sixteen workers from Bangladesh to complement its Indonesian workforce in 2018. However, nine workers had since absconded from the estate without completion of their two-year contract. The estate uses unskilled aborigines, when available, to collect loose fruits and perform basic maintenance work. The Malaysian plantation in 2018 generated a loss before tax after BA movement of $0.5 million compared to profit before tax after BA movement of $0.6 million in 2017.
The financial performances of the various regions are reported in note 6 on segmental information.
Commodity Prices
The CPO ex-Rotterdam price started the year high at $678/mt (2017: $790/mt) but gradually trended downwards due to higher inventory and subdued demand. It dipped to its lowest level of $440/mt in the middle of November 2018. Its peak was at $700/mt recorded at the end of February 2018. It ended the year at $506/mt (2017: $670/mt), averaging $595/mt for the year, 17% lower than last year (2017: $718/mt).
The CPO prices also move in tandem with price of soybean oil and crude oil being its closest competitors in vegetable oil and biodiesel market respectively. Over a period of ten years, CPO price has touched a high of $1,335/mt and a low of $440/mt. The average price over the ten years is about $801/mt. The price is under tremendous pressure and remains volatile due to discriminatory actions to either ban or phase out the use of palm oil and palm biodiesel by certain EU members. The higher tax on CPO imports into India and the trade war between US and China had also fanned the price volatility in 2018. In January 2019 India lowered the tax on import of CPO and refined palm oil. This would improve palm oil competitiveness and may translate into a higher demand of CPO from Indian consumers. It was reported that the Indonesian government plans to introduce higher blending from next year for its current B20 biodiesel programme whereby 20% of palm methyl ester is blended with 80% petroleum diesel. In Malaysia, a B10 biodiesel programme was introduced to help the industry pare down the palm oil stockpile. In the long run these programmes are expected to help shore up demand as well as the CPO price besides supporting cleaner energy.
Rubber prices averaged $1,243/mt for 2018 (2017: $1,607/mt). Our small area of 262ha of mature rubber contributed a revenue of $0.8 million in 2018 (2017: $1.3 million).
Corporate Development
In 2018, the Group opened up new land and planted 1,563ha of oil palm mainly in Kalimantan, boosting planted area including the smallholder cooperative scheme, known as Plasma, by 2% to 69,793ha (2017: 68,310ha). This excludes the replanting of 470ha of oil palm in North Sumatera. The Group faced difficulties in concluding fair prices with some villagers over land compensation. In some instances, villagers held onto their land and refused to sell especially in South Sumatera and Bangka.
With the current shortage of power supply in North Sumatera, the Group had begun construction of its fourth biogas plant in Rantau Prapat which is expected to cost up to $3.8 million. The earthworks were delayed by poor soil structure at the biogas lagoon which resulted in erosion and sliding of the embankment. Further soil tests were conducted by geotechnical experts to find the appropriate solution.
The Group has started construction of its seventh mill in North Sumatera in 2018. The 60mt/hr mill is expected to cost $19 million and will be substantially funded by internal cash flows. Costs of civil and structural works including earthworks would be higher as the mill is built on shallow peat soil. The level of the site needs to be raised higher by filling and compacting with imported mineral soil. The civil works will require 38-metre-long concrete piles to support the buildings and storage facilities. The Group has over the past three years explored various sites outside the plantation and along the Barumun river for the construction of a mill, however, it was not able to obtain the necessary permit which allows conversion of agricultural into industrial land.
Our buyers in Kalimantan rely on barges and tankers to move the CPO purchased. The unavailability of barges or difficult road conditions in remote locations often delay the collection of CPO from the mill. In order to ensure that there is no disruption to the mill operation, the Group decided to build an additional storage tank and expand its storage facility in the mill in Kalimantan from 9,000mt to 13,000mt at a cost of $200,000.
In 2019 the three mills in MPM, Sumindo and SGM will be expanding as well as building new bulking silos for storage of kernels at a cost of $800,000 as production increases.
Corporate Social Responsibility
Corporate Social Responsibility ('CSR') is an integral part of corporate self-regulation incorporated into our business model. Our Group embraces 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 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-five mosques and nineteen 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. It also sponsored and donated cows for sacrifice to celebrate religious festivals. The Group spent $389,200 in 2018 to maintain these amenities and to support the communal activities.
The Group provides free education for allemployees' childrenin 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 providescomputers andfunding to construct educational facilities including laboratories and libraries. The salaries of teachers in the estates andthe cost of school buses to transportemployees' childrento schoolsare provided by the Group.Over the years a total of thirty-eightschoolswhich comprised of twenty-one pre-schools, eleven primary schools, five secondary schools and one high school have been built with a combined enrolment of over 4,290 students. It currently employs one hundred and fifty-seventeachersin theestates. The Group operated thirty-eight vehicles andspent some $812,000 onrunning theschoolsand operating the buses in 2018.
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. It started a partnership with a university in North Bengkulu in 2013 to sponsor and to provide students with the chance to pursue higher education. Up to 2018, over three hundred and fifty-three scholarships had been awarded at a cost of $123,000. Similarly, one hundred children of our employees were sponsored, which cost over $96,500 since its introduction in 1999, to study in various universities in Indonesia. The popular courses ranged from Engineering, Education, Economics to Agriculture. Forty-four of them had successfully graduated from the universities with some of them now working for the Group.
The Group continues to provide free comprehensive health care for all its workersas we believe that every employee and their dependents should have easy access to health services.We have established twenty-threeclinicsoperated 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 provided health care services to the surrounding community without the need to travel to faraway cities for medical treatment. In addition, the Group organised fogging to prevent the spread of dengue mosquitoes.
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 2018 were $914,000.
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 torun 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 now 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 four hundred and sixty-eight employees have participated in the programme since its inception in 1993 with 39% still working for the Group. Over the years, one employee has successfully been promoted to General Manager level with another nineteen being employed in various senior positions in the head office, plantations and mills.
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 6,960ha plasma commitment, the Group has planted oil palm in 3,181ha. In 2018 the Group received 25,800mt of FFB from Plasma schemes compared to 16,400mt the previous year. Total revenue after deduction of management fees received by Plasma cooperatives was $2.4 million in 2018 against $1.6 million in 2017. There is a substantial increase in Plasma planting from 2017 of 2,862ha which is in line with the Group's commitment.
In order to aid the development of Plasma schemes, the Group provided corporate guarantees of over $16 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 right certification from the local land office.
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 palm oil across four companies.
In addition, the Group also develops infrastructure such as the construction and repair of bridges and maintained over 236km of external roads in 2018. The Group also provides initial aid and seed capital to villagers such as fruit seedlings, fish fries, cattle and ducks to start community sustainable programs.
In 2018, the Group started a vegetable farm in a one-hectare site in North Sumatera where it planted various organic vegetables. The produce had been sold to employees at subsidized prices to reduce their cost of living as well as to promote heathy living. It also donated some vegetables to local charitable homes.
In October 2018, the Group contributed $14,500 towards national efforts to build shelters for displaced victims of the earthquake and tsunami that hit Palu and Donggala, respectively, in Southeast Sulawesi.
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 RSPO (Roundtable on Sustainable Palm Oil) 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. While ISPO may be less stringent, protection for biodiversity was enhanced through the Presidential Decree 8/2018 that imposed a three-year moratorium on the clearance of primary forest for plantations.
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 2018 the regional government in North Sumatera awarded three operating companies the Group Zero Accident Awards in recognition of the companies' effort to reduce accidents at the workplace. 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. 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. The watch towers are manned constantly particularly during the dry weather. Standard operating procedures were refined and documented based on sustainable oil palm best practices. It also conducts internal audits using an audit checklist adopted from the above practices to determine the level of compliance.
The Group worked closely with appointed certification consultants in the implementation of ISPO standard. CPA, Bina Pitri and Alno were awarded their ISPO certification in 2018. To-date ten companies have been ISPO certified. SGM and HPP had completed the second stage of ISPO audit while certification audits have started for a further five companies. ISPO certification provides third party verification and confirmation that the companies are operating according to national and international standards. The Group targets full ISPO compliance by 2020.
Environment Social and Governance Practices
Environmentally friendly plantation practices are a must to maintain the industry's long-term prospects. The Group has been consistently practising good agricultural practices such as zero burning, integrated pest management, land terracing and recycling of biomass. When it comes to replanting, the old palms felled are chipped 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. Where the land is undulating, we build terraces for planting which helps to prevent landslides, conserve the water and nutrients effectively and provide better accessibility for employees. Legume cover crops are planted to minimise soil erosion and preserve the soil moisture. In mature areas, fronds and EFB are placed inter-rows to allow the slow release of organic nutrients while minimising soil erosion especially sandy soil and degradation. Estates with sandy areas use soft grass, Nephrolepis biserrataferns and cut fronds to cover bare ground which increase soil moisture. Conservation drains are constructed to harvest and contain rainwater.
The effluents discharged from the mills are fully treated in anaerobic lagoons and in some mills, there are extended aeration tanks for further treatment of the effluent to reduce its biological oxygen demand ('BOD'). The final discharge is applied to the estate's land where it is used as fertilisers. The BOD is tested regularly to ensure that it is below the legal limit for land application in Indonesia. The Group is working towards zero-effluent policy whereby no by-products from the production of CPO is expelled into rivers.
The Group's three biogas plants will enhance the effluent treatment inthe mills and at the same time mitigate greenhouse biogas emissions. The trapped biogas will be used to generate and supplypower to its biomass plant and national grid without dependency on fossil fuels. A fourth biogas plant is in the early stage of construction. Similar undertakings for the Group's mills are planned and shall be implemented in stages. The Group intends to sell the surplus power generated from future biogas plants.
The Group is committed to implementing good agricultural practices as spelt out in its standard operating procedures for theplantingofoil palm. Integrated Pest Management has been adopted to control the population of damaging pests and to improve biological balance. Barn owls were introduced to control rats. We do not use rat baits to control the rat population. Beneficial plants of Turnera subulata, Cassia cobanensis and Antigonon leptopus were planted to attract natural predators for biological control of bagworms and leaf-eating caterpillars.Weeds are controlled selectivelybyusing more environmentally friendly and broad spectrum weed control herbicides.
The Group does not use Class 1 pesticide and herbicide to control vermin and weeds due to high level of toxicity except in specific instances where outbreak is severe.We are, however, committed to reducing the usage of toxic pesticide and herbicide and will not hesitate to phase them out once a suitable substitute is available. The sprayers are also trained insafety and spraying techniques.The chemicals are kept in designated storage and examined at regular intervals. Employees who handle the use of chemicals undergo medical examination routinely. The Group reinforced the standard occupational safety measures like the use of protective suits and equipment when mixing, loading and applying the pesticides which is mandatory by the Manpower and Transmigration Ministerial Decree No. 08/2010. Managers and employees risked being penalized and disciplined as safety standards compliance are 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. The Group has in place standard operating procedure that required the management to be informed for instances of pesticides poisoning among its pesticide applicators.
In order to minimize 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 danger level.
The Group continues to comply and preserve the High Conservative Value ('HCV') areas recognised by the Department of Forestry. All HCV areas were mapped with boundaries clearly indicated by independent surveyors to ensure that the Group does not plant in these sensitive areas. The Group is committed to zero deforestation and to preserve the flora and fauna species in these areas. The Group has identified about 7,800ha as riparian reserves and another 4,800ha as areas of HCV within its land. Natural vegetation on uncultivablelandssuch as deep peat, very steep areas and riparian zones along watercourses aremaintained to preserve biodiversity and wildlife corridors as well as to check erosion.
In Indonesia where drought occurs regularly, an emergency response team is set up in the estate armed with 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.
All sacred and customary lands are 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 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, dangerous and toxic waste treatment which impact the environment. Although no official grading is required for the remaining two mills, the Group plans to rate them voluntary in 2019 to confirm that they are in compliance.
One of the mills has started the process of obtaining a certification under International Sustainability and Carbon Certification ('ISCC'). This certification is issued by ISCC System GmbH, a global certification body based in Cologne, Germany. The criteria used in the certification process are:
• Implement social and ecological sustainability criteria
• Monitor deforestation-free supply chains
• Avoid conversion of biodiverse grassland
• Calculate and reduce greenhouse gas ('GHG') emissions
• Establish traceability in global supply chains
A certification identified a company as a responsible player in the industry that has taken efforts to produce sustainable CPO.
The Group is working to formalise a policy framework which incorporates the requirement of all the sustainability standards and regulations to which the Group is already practicing and committed.
Principal risks and uncertainties
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. The Board carries out a robust assessment of the principal risks facing the Group on an annual basis.
Nature of the risk and its origin | The likelihood and impact of the risk and the circumstances under which the risk might be most relevant to the Company | Mitigating or other relevant considerations | |
Country and regulatory | |||
The Group's operations are located substantially in Indonesia and therefore significantly rely on economic and political stability in Indonesia. | Political upheaval and deterioration in the security situation may cause disruption on the operation and consequently financial loss. | 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 late 1990, there was civil unrest attributed to ethnic tensions in some parts of Indonesia. The Group's operations were not interrupted by the regional security problems including occasional racial conflicts. | |
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 to the United Kingdom ('UK') will be restricted affecting servicing of UK obligations and payment of dividends to shareholders. | 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. | |
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 Indonesia to 20,000ha per province and a total of 100,000ha in Indonesia. | Mandatory reduction of foreign ownership in Indonesian plantations could force divestment of interests in Indonesia at below market values. | 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. | |
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 International Transparency Corruption Perceptions index. | |
Imposition of import controls or taxes in consuming and exporting countries. In November 2017, the Indian government imposed a steep levy on the import of CPO and refined oil into India. There was however some reduction in 2019. Efforts by some members of EU to ban the use of palm oil and palm biodiesel on sustainable issues. | 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. It will be more difficult to export palm oil to EU either for food or palm biodiesel and will hurt the demand of CPO in EU which is the third largest consumer of CPO. | The Indonesian government allows free export of CPO but applies a sliding scale of duties on exports which allows producers economic margins. Despite the ban on use of palm oil and palm biodiesel in some parts of EU, CPO remains amongst the cheapest source of vegetable oil in a growing population. | |
Produce prices | |||
CPO is a primary commodity and is affected by the world economy, levels of inflation, and availability of alternative soft oils such as soybean oil. CPO price also moves in tandem with crude oil prices which determine the competitiveness of CPO as a source of biodiesel. | This may lead to significant price swings. The profitability and cash flow of the plantation operations depend upon world prices of CPO and upon the Group's ability to sell CPO 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. | |
Social, community and human rights issues | |||
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 for land allocated to the Group which were previously used by the communities for their livelihood. | Communication breakdown would cause disruption on the operation and consequently financial loss. Access to areas of disputed compensation is restricted due to blockages by the communities. | The Group mitigates this risk by liaising regularly with village representatives to mediate on disputes. It develops a close relationship with villagers by improving local living standards through mutually beneficial economic and social interaction with the local villages. 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 Group, its employees and their 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 or villages and Plasma schemes surrounding the operating estates. The returns from these plots are used to improve villages' community welfare. | |
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 its plantations are located, frequently experience natural disasters like earthquake, forest fire and tsunami. | Dry periods, in particular, will affect yields in the short and medium term. Drought induces moisture stress in palm trees. 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. | Where appropriate, bunding is built around flood prone areas and canals/drainage/retention ponds constructed and adapted either to evacuate surplus water or to maintain water levels in areas quick to dry out. Where practical, natural disasters are covered by insurance policies. Certain risks (including the risk of crop loss through fire, earthquake, flood and other perils potentially affecting the planted areas on the Group's estates) if they materialise could dent the potential revenues, for which insurance cover is either not available or would in the opinion of the Directors be disproportionately expensive, are not insured. These risks of floods, earthquake or haze are mitigated by the geographical spread of the plantations but an occurrence of an adverse uninsured event could result in the Group sustaining material losses. | |
Exchange rates | |||
CPO is a US Dollar denominated commodity and a significant 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. | Adverse movements of Rupiah against US Dollar can have a negative effect on the operating costs and raise funding costs. | The Board has taken the view that these risks are inherent in the business and feels that adopting hedging mechanisms to counter the negative effects of foreign exchange volatility are both difficult to achieve and would not be cost effective. | |
Hedging risk | |||
The Group's subsidiaries have borrowings in US Dollar. | The Group could face significant exchange losses in the event of depreciation of their local currency (i.e. strengthening of US Dollar) - and vice versa. | The risk is partially mitigated by US Dollar denominated cash balances and the higher average interest rate on Rupiah deposits which is 4.85% higher than on US Dollar deposits whereas the interest rate for Rupiah borrowings is about 4.09% higher compared to US Dollar borrowings. | |
Information Technology ('IT') security risk | |||
The security threats faced by the Group include threats to its IT infrastructure, unlawful attempts to gain access to classified information and potential for business disruptions associated with IT failures. | Failure to combat cyberattack could cause disruption to our business operations. Potential loss of financial records leading to error or misstatement in financial statements. | The Group has measures in place including appropriate tools and techniques to monitor and mitigate this risk. The Group through its IT Consultant has in place antivirus, threat detection, log analysis, DDOS protection and Firewalls. | |
Gender 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 regard to the representation of women on the boards of Directors of listed companies and will make every effort to conform based on legislative requirement.
2018 average employed during the year | |||
Group Headcount | Women | Men | Total |
Board (Company and subsidiaries) | 3 | 13 | 16 |
Senior Management (GM and above) | - | 6 | 6 |
Managers & Executives | 33 | 380 | 413 |
Full Time | 225 | 5,664 | 5,889 |
Part-time Field Workers | 4,956 | 5,903 | 10,859 |
Total | 5,217 | 11,966 | 17,183 |
% | 30% | 70% | 100% |
2017 average employed during the year | |||
Group Headcount | Women | Men | Total |
Board (Company and subsidiaries) | 2 | 14 | 16 |
Senior Management (GM and above) | - | 6 | 6 |
Managers & Executives | 31 | 379 | 410 |
Full Time | 200 | 5,062 | 5,262 |
Part-time Field Workers | 4,244 | 5,753 | 9,997 |
Total | 4,477 | 11,214 | 15,691 |
% | 29% | 71% | 100% |
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 17% from 4,244 to 4,956 in 2018. Overall, the percentage of female workers within the Group increased from 4,477 or 29% in 2017 to 5,217 or 30% in 2018.
Employees
Oil palm cultivation is a labour-intensive industry. In 2018, the number of full-time workers averaged 6,324 (2017: 5,694) while the part-time labour averaged 10,859 (2017: 9,997). The headcount in 2018 was higher by 9.5% as additional workers were required as more plantations reached peak production age. The Group has introduced 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.
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 centrethat provide grounding and refresher courses in technical aspects of oil palm estate and mill management. The training centrealso 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 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.
All the plantations are at various stages of introducing finger printing to record and mark attendance of daily workers and to pay all workers through bank transfer to improve the efficiency of estate operations.
A large workforce and their families are housed across the Group's plantations. The Group further provides at its own cost water and electricity and a host of other amenities including places of worship, schools and clinics. 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.
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 engage members of the labour unions representing full-time workers at least once a year on their yearly performance bonuses and grievances. A whistle-blower policy will be introduced from next year that would allow workforce to raise concerns in confidence and if they wish anonymously to the Board of the holding company for independent investigation and follow-up action.
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, 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.
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 to March 2019 was 3% higher against the same period in 2018 mainly due to the increase in production from North Sumatera and Kalimantan regions. It is too early to forecast whether the production will be better for the rest of the year.
The CPO price ex-Rotterdam opened the year at $517/mt and averaged about $540 for the first three months of 2019. Palm oil's discount to rival soybean oil has also widened to over $200/mt from $133/mt in March 2018. Palm oil prices remain attractive and should lift demand going forward.
The rising material costs and wages in Indonesia are expected to increase the overall production cost in 2019. The Indonesian government recently announced in 2019 regional increases in minimum wage averaging 8.7%. These wage hikes will raise overall estate costs and may erode profit margins.
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 2019.
On behalf of the Board
Dato' John Lim Ewe Chuan
Executive Director, Corporate Finance and Corporate Affairs
23 April 2019
Directors' Responsibilities
The Directors are responsible for preparing the annual report and the financial statements in accordance with 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 International Financial Reporting Standards ('IFRSs') as adopted by the European Union. The Directors have elected to prepare the Company financial statements in accordance with FRS 101 Reduced Disclosure Framework under the UK Generally Accepted Accounting Practice ('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 applicable accounting standards, subject to any material departures disclosed and explained in the financial statements;
· prepare a Strategic Report, a Director's Report and Director's Remuneration report which comply with the requirements of the Companies Act 2006; and
· make an assessment of the Company and Group's ability to continue as a going concern.
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 and, as regards the Group financial statements, Article 4 of the IAS Regulation. 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.
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue operations for the foreseeable future.
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 DTR4
All of the Directors confirm to the best of their knowledge:
· The Group financial statements have been prepared in accordance with IFRSs as adopted by the European Union and Article 4 of the IAS Regulation and give a true and fair view of the assets, liabilities, financial position and profit and loss of the Group.
· The Strategic Report in the annual report includes a fair review of the development and performance of the business and the financial position of the Group, together with a description or the principal risks and uncertainties that they face.
· The annual report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's performance, business model and strategy.
On behalf of the Board
Dato' John Lim Ewe Chuan
Executive Director, Corporate Finance and Corporate Affairs
23 April 2019
Consolidated Statement of Cash Flows
For the year ended 31 December 2018
2018 $000 | 2017 $000 | |
Cash flows from operating activities | ||
Profit before tax | 30,929 | 69,691 |
Adjustments for: | ||
BA movement | 2,286 | 297 |
Gain on disposal of property, plant and equipment | (21) | (18) |
Depreciation | 16,752 | 16,284 |
Retirement benefit provisions | 1,250 | 1,520 |
Net finance income | (3,537) | (3,584) |
Unrealised loss in foreign exchange | 1,250 | 272 |
Property, plant and equipment written off | 620 | 585 |
Impairment losses / (reversal of impairment) | 4,339 | (923) |
Operating cash flow before changes in working capital | 53,868 | 84,124 |
Increase in inventories | (746) | (252) |
Increasein non-current, trade and other receivables | (2,173) | (4,413) |
Increase in trade and other payables | 4,148 | 837 |
Cash inflow from operations | 55,097 | 80,296 |
Interest paid | (1,511) | (1,753) |
Retirement benefits paid | (257) | (774) |
Overseas tax paid | (36,508) | (26,412) |
Net cash flow from operating activities | 16,821 | 51,357 |
Investing activities | ||
Property, plant and equipment | ||
- purchases | (30,282) | (27,192) |
- sales | 42 | 267 |
Interest received | 5,048 | 5,337 |
Net cash used in investing activities | (25,192) | (21,588) |
Financing activities | ||
Dividends paid to the holders of the parent | (1,585) | (1,515) |
Dividends paid to non-controlling interests | (73) | (231) |
Drawdown of long-term loans | - | - |
Repayment of existing long-term loans | (8,594) | (6,197) |
Net cash used in financing activities | (10,252) | (7,943) |
Net (decrease) / increase in cash and cash equivalents | (18,623) | 21,826 |
Cash and cash equivalents | ||
At beginning of year | 139,489 | 118,176 |
Exchange losses | (8,654) | (513) |
At end of year | 112,212 | 139,489 |
Comprising: | ||
Cash at end of year | 112,212 | 139,489 |
Notes
1 Basis of preparation
Anglo-Eastern Plantations Plc ('AEP') is a company incorporated in the United Kingdom 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, United Kingdom. The principal activity of the Group is plantation agriculture, mainly in the cultivation of oil palm.
The financial information does not constitute the company's statutory accounts for the years ended 31 December 2018 or 2017. Statutory accounts for the years ended 31 December 2018 and 31 December 2017 have been reported on by the Independent Auditor. The Independent Auditor's Reports on the Annual Report and Financial Statements for the years ended 31 December 2018 and 31 December 2017 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2017 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2018 will be delivered to the Registrar in due course.
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, except as detailed in the following paragraph.
Basis of preparation
The financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ('IASB') as adopted by the European Union ('EU') and with those parts of the Companies Act 2006 applicable to companies preparing their accounts under IFRS as adopted by the EU.
Changes in accounting standards
a) The following amendments are effective for the first time for accounting periods beginning on or after 1 January 2018 in these financial statements:
• IFRS 9 Financial Instruments
• IFRS 15 Revenue from Contracts with Customers
• Classifications to IFRS 15 revenue from Contracts with Customers
• Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions
• Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts
• Annual Improvements to IFRSs (2014 - 2016 Cycle)
• IFRIC 22 Foreign Currency Transactions and Advance Consideration
All the new and amended standards and Interpretations listed above that will apply for the first time in these financial statements are not expected to impact the Group as they are either not relevant to the Group's activities or require accounting which is consistent with the Group's current accounting policies except IFRS 9 Financial Instruments.
b) New standards, interpretations and amendments not yet effective.
Except for IFRS 17, the following new standards, interpretations and amendments are effective for periods beginning on 1 January 2019 and have not been applied in these financial statements:
• IFRS 16 Leases
• IFRIC 23 Uncertainty over Income Tax Treatments
• Amendments to IFRS 9 Prepayment Features with Negative Compensation
• Amendments to IAS 28: Long-term Interests in Associates and Joint Ventures
• Annual Improvements to IFRSs 2015-2017 Cycle (IFRS 3 Business Combinations and IFRS 11 Joint Arrangements, IAS 12 Income Taxes, and IAS 23 Borrowing Costs)
• Amendments to IAS 19: Plan Amendment, Curtailment or Settlement
• IFRS 17 Insurance Contracts (effective 1 January 2021)
None of the above new standards, interpretations and amendments are expected to have a material effect on the Group's future 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.
(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) 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 link 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 is recorded net of sales related taxes and levies, including export taxes and recognised when goods are delivered to a purchaser. Delivery does not take place until goods are paid for. Sales of latex 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.
The Group has adopted IFRS 15 using the full retrospective method, there was no adjustment required to either year presented on transition as there is no impact in terms of revenue recognition.
(e) Share based payments
Share options are measured at fair value (excluding the effect of non market-based vesting conditions) at the date of grant. This fair value is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest and adjusted for the effect of non market-based vesting conditions.
Fair value is measured by use of a binomial model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.
Provided that all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied.
(f) 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.
(g) 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.
(h) 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:
• Revalued land - Property, plant and equipment (note 10)
• Biological assets
For more detailed information in relation to the fair value measurement of the items above, please refer to the applicable notes.
(i) 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 land and construction in progress, are stated at cost less accumulated depreciation and any accumulated impairment losses.
Plantations comprise of the cost of planting and development on 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 or subject to certificate of Land Exploitation Rights (HGU) being obtained, whichever is earlier. The costs of immature plantations consist mainly of the accumulated cost of land clearing, planting, fertilising and maintaining the plantation, borrowing costs 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 FFB 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 and accounted for as an indefinite finance lease. The leasehold land is recognised at cost initially and is not depreciated. The land is subsequently carried at fair value, based on periodic valuations on an open market basis by a professionally qualified valuer. These revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. Changes in fair value are recognised in other comprehensive income and accumulated in the revaluation reserve except to the extent that any decrease in value in excess of the credit balance on the revaluation reserve, or reversal of such a transaction, is recognised in income statement. On the disposal of a revalued estate, any related balance remaining in the revaluation reserve is transferred to retained earnings as a movement in reserves.
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.
Interest on third party loans directly related to field development is capitalised in the proportion that the opening immature area bears to the total planted area of the relevant estate. Interest on loans related to construction in progress (such as an oil mill) is capitalised up to the commissioning of that asset. These interest rates are booked at the rate prevailing at the time.
Plantations, buildings and oil mills are depreciated using the straight-line method. All other property, plant and equipment items are depreciated using the double-declining-balance method. The yearly rates of depreciation are as follows:
Plantations - 5%
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
(j) 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.
(k) Leased assets
Assets financed by leasing agreements which give rights approximating to ownership (finance leases) are capitalised at amounts equal to the original cost of the asset to the lessors and depreciation is provided on the asset over the shorter of the lease term or its useful economic life in accordance with Group depreciation policy for those held at cost. Land rights are held at fair value and revalued at the balance sheet date. The capital elements of future obligations under finance leases are included as liabilities in the balance sheet and the current year's interest element is charged to the income statement to produce a constant rate of charge on the balance of capital repayments outstanding. All other leases are treated as operating leases. Their annual rentals are charged to the income statement on a straight line basis over the term of the lease.
(l) Impairment
Impairment tests on property, plant and equipment are 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 administrative expenses in the income statement, except to the extent they reverse gains previously recognised in the statement of recognised income and expense.
(m) 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.
(n) 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 balance sheet.
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. Where the receivables are written off, the Group continues to recover the receivables due. Where recoveries are made, these are recognised in profit or loss.
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.
(o) 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.
(p) Deferred tax
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the balance sheet 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 or credited directly to equity, such as revaluations, in which case the deferred tax is also dealt with in other comprehensive income; in this case assets and liabilities are offset.
(q) 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. These 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 high quality corporate bonds that have maturity dates approximating to the terms of the liabilities; plus
• Unrecognised past service costs; less
• The effect of minimum funding requirements agreed with scheme trustees.
Remeasurements of the net defined obligation are recognised directly within equity. 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 comprehensive income and include current and past service costs as well as gains and losses on curtailments.
Net interest expense / (income) is recognised in comprehensive income, 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 comprehensive income. Settlements of defined benefit schemes are recognised in the period in which the settlement occurs.
(r) 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.
(s) 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, the Group considers these to be insurance arrangements and accounts for them as such.
(t) Critical accounting estimates and judgements
The preparation of the Group financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported assets and liabilities and reported revenue and expenses. Actual results could differ from those estimates and accordingly, they are reviewed on an on-going basis. The main areas in which estimates are used are the fair value of biological assets, property, plant and equipment, deferred tax and retirement benefits.
Revisions to accounting estimates are recognised in the period in which the estimate is revised or the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.
Assumptions regarding the valuation of property, plant and equipment are set out in note 10. The Group's policy with regard to impairment of such assets is set out above.
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.
Year to 31 December 2018 | CPO, palm kernel and FFB | Rubber | Shell nut | Biomass products | Biogas products | Others | Total | ||
$000 | $000 | $000 | $000 | $000 | $000 | $000 | |||
Contract counterparties | |||||||||
Government | - | - | - | - | 863 | - | 863 | ||
Non-government - Wholesalers | 245,595 | 792 | 2,047 | 914 | - | 648 | 249,996 | ||
245,595 | 792 | 2,047 | 914 | 863 | 648 | 250,859 | |||
Timing of transfer of goods | |||||||||
Delivery to customer premises | 2,696 | 792 | - | - | - | - | 3,488 | ||
Delivery to port of departure | - | - | - | 914 | - | - | 914 | ||
Customer collect from our mills / estates | 242,899 | - | 2,047 | - | - | - | 244,946 | ||
Upon generation / others | - | - | - | - | 863 | 648 | 1,511 | ||
245,595 | 792 | 2,047 | 914 | 863 | 648 | 250,859 | |||
Year to 31 December 2017
Contract counterparties | ||||||||||
Government | - | - | - | - | 865 | - | 865 | |||
Non-government - Wholesalers | 286,164 | 1,305 | 2,214 | 644 | - | 715 | 291,042 | |||
286,164 | 1,305 | 2,214 | 644 | 865 | 715 | 291,907 | ||||
Timing of transfer of goods | ||||||||||
Delivery to customer premises | 3,306 | 1,305 | - | - | - | - | 4,611 | |||
Delivery to port of departure | - | - | - | 644 | - | - | 644 | |||
Customer collect from our mills / estates | 282,858 | - | 2,214 | - | - | - | 285,072 | |||
Upon generation / others | - | - | - | - | 865 | 715 | 1,580 | |||
286,164 | 1,305 | 2,214 | 644 | 865 | 715 | 291,907 | ||||
4 Finance income and expense
2018 $000 | 2017 $000 | |||
Finance income | ||||
Interest receivable on: | ||||
Credit bank balances and time deposits | 5,048 | 5,337 | ||
Finance expense | ||||
Interest payable on: | ||||
Development loans | (1,511) | (1,753) | ||
Net finance income recognised in income statement | 3,537 | 3,584 |
5 Profit before tax
2018 $000 | 2017 $000 | ||||||
Profit before tax is stated after charging | |||||||
Purchase of FFB | 104,210 | 127,795 | |||||
Depreciation (note 10) | 16,752 | 16,284 | |||||
Impairment losses / (Reversal of impairment) (note 10) | 4,339 | (923) | |||||
Exchange losses | 1,250 | 272 | |||||
Movement of inventories | (142) | (179) | |||||
Operating lease expense | |||||||
- Property | 528 | 496 | |||||
Professional fees | 1,422 | 1,211 | |||||
Staff costs (note 7) | 37,991 | 34,926 | |||||
Remuneration received by the group's auditor or associates of the group's auditor: | |||||||
- Audit of parent company | 5 | 5 | |||||
- Audit of consolidated financial statements | 137 | 118 | |||||
- Audit of consolidated financial statements (prior year) | (1) | 13 | |||||
- Audit related assurance service | 6 | 6 | |||||
- Audit of UK subsidiaries | 13 | 13 | |||||
Total audit services | 160 | 155 | |||||
Audit of overseas subsidiaries | |||||||
- Malaysia | 19 | 17 | |||||
- Indonesia | 86 | 83 | |||||
Total audit services | 105 | 100 | |||||
Total auditor's remuneration | 265 | 255 | |||||
6 Segment information
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 Executive Committee, that is made up of a Senior General Manager in Malaysia, the Chief Executive Officer, the Chief Operating Officer, Finance Director and the Engineering Director.
Measurement of operating segment profit or loss, assets and liabilities
The Group evaluates segmental performance on the basis of profit or loss from operations calculated in accordance with IFRS but excluding non-recurring losses, such as share based payments.
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.
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Anglo-Eastern Plantations plc published this content on 24 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 24 April 2019 13:12:10 UTC
