SIPEF

Interim / Quarterly Report • Aug 20, 2015

Regulated information June

Half-year results

of the SIPEF group as per 30 June 2015 (6m/15)

• Favourable agronomic conditions, particularly in the second quarter, led to rising production volumes for palm oil, rubber and tea.
• Lower market prices for palm oil and rubber were the main reason for the substantial decrease (-53.2%) in operating results before IAS41 revisions.
• The unit costs in USD terms in Indonesia, Papua New Guinea and Ivory Coast were positively influenced by the devaluation of the local currencies against the USD.
• The result before IAS41 (group share) amounted to KUSD 13 598, a 51.7% decrease compared to the first half of last year.
• Due to temporary changes in the net working capital, the cash flow from operating activities after tax was insufficient to finance the steady expansion of the plantation activities in Indonesia, Papua New Guinea and Ivory Coast entirely from equity.
• Taking into account the persistently lower projected prices for palm oil and rubber, and additional levies on palm oil exports from Indonesia, we expect the annual results for 2015 to be substantially lower than in 2014.

1. Interim management report

1.1. Group production

		Second Quarter				Year To Date
2015 (in tonnes)	Own	Third Parties	Q2/15	YoY%	Own	Third Parties	YTD Q2/15	YoY%
Palm Oil	60 051	14 592	74 643	7.54%	108 674	26 511	135 185	2.87%
Rubber	2 716	111	2 827	9.79%	5 515	151	5 666	2.15%
Tea	784	0	784	9.34%	1 524	0	1 524	11.32%
Bananas	5 786	0	5 786	-3.68%	12 850	0	12 850	-7.58%
2014 (in tonnes)	Own	Third Parties	Q2/14		Own	Third Parties	YTD Q2/14
Palm Oil	56 127	13 285	69 412		106 408	25 007	131 415
Rubber	2 370	205	2 575		5 176	371	5 547
Tea	717	0	717		1 369	0	1 369
Bananas	6 007	0	6 007		13 904	0	13 904

Year To Date
Own	Third Parties	YTD Q2/15	YoY%
108 674	26 5 11	135 185	2.87%
5 5 1 5	151	5666	2.15%
1 5 2 4	0	1 5 2 4	11.32%
12850	0	12850	$-7.58%$

Own	Third Parties	YTD Q2/14
106 408	25 007	131 415
5 1 7 6	371	5 5 4 7
1 369	0	1 369
13 904		13 904

After an exceptionally low production level in the first quarter as a result of the delayed effect of drought in the spring of 2014, palm oil volumes recovered well in the second quarter, with a general growth of 7.5% compared to the same period last year. Consequently, the total palm oil production for the group showed a renewed upward trend at the end of June (+2.87%) and was in line with the projected growth, resulting from an increase in harvested acreage and in the maturity of the young plantations.

During the second quarter, production volumes for both the mature plantations in North Sumatra and those of Agro Muko in Bengkulu were still slightly down on the volumes for the same period in 2014. By contrast, the young plants in the PT Umbul Mas Wisesa/PT Toton Usaha Mandiri (UMW/TUM) project in North Sumatra experienced relatively little adverse effect from the drought and steadily continued to make progress, with a +39.1% increase in harvested bunches over the first six months.

At Hargy Oil Palms in Papua New Guinea, the operational damage caused by the exceptional rainfall in the first quarter was repaired, while the second quarter already saw a 16.2% production increase compared to the same period last year. April in particular was still marked by irregular supplies of bunches from smallholders until all roads and bridges became passable again, resulting in an increase in volumes from third parties, which at the end of June were 5.3% up on the previous year.

Rubber production in Indonesia this year was confronted with unusual wintering; as a result, we observed a later than expected production decrease in North Sumatra and in Bengkulu. In South Sumatra, production during the first quarter in particular was lower than expected, nevertheless, total production over the first six months was exceptionally positive with a 10.0% growth in comparison with the same period last year. At the rubber plantations in Papua New Guinea, the areas in tapping were reduced by 11% and adapted to the yield thresholds that were introduced in order to make up for low selling prices where possible. Raw rubber volumes sourced from third parties were more than halved as well.

As a result of favourable weather conditions and measures to increase the yield per hectare, black tea production at the Cibuni plantation in Java increased over the first six months (+11.3%).

Plantations J. Eglin SA in Ivory Coast was unable to match the exceptionally high production volumes of the first six months of last year (-7.6%) as the Harmattan winds from North Africa, which last year were absent, returned this year to cause the usual delay in the banana ripening process.

1.2. Markets

Average market prices
in USD/tonne*		YTD Q2/15	YTD Q2/14	YTD Q4/14
Palm oil	CIF Rotterdam	674	899	821
Rubber	RSS3 FOB Singapore	1 762	2 187	1 958
Tea	FOB origin	2 558	2 140	2 045
Bananas	FOT Europe	918	1 097	1 043

* World Commodity Price Data

The second quarter was characterized by a very strong production recovery in Indonesia and Malaysia and the market started a new boom cycle. Initially, exports remained poor and stocks grew to almost 2.2 million tonnes in Malaysia. But the pre-Ramadan buying wave arrived in May/June and stocks remained stable afterwards. The market struggled between a friendly El Niño development and a bearish lack of action by the Indonesian government on their 15% biodiesel mandate. So far, there has been no blending of biodiesel along the lines of this mandate. The introduced export levy of USD 50/ tonne in Indonesia did not materialize either and the market was left in a quandary as to when it would actually be implemented. All these uncertainties have had a negative effect on the market. All in all, the market traded within a narrow range of USD 680/tonne and USD 630/tonne CIF Rotterdam.

The price of palm kernel oil had been trading in a similar price band, hovering between USD 920/tonne and USD 870/tonne CIF Rotterdam.

The rubber market showed some positive signals during the second quarter, with prices rallying about 15% on the back of good order flow with partial short covering, as well as a prolonged wintering in Thailand and Vietnam. But, similar to the first quarter, it was a short-lived rally once production returned. The price of Sicom RSS3 traded between USD 1 650/tonne and USD 1 900/tonne, after which it dropped back to the lower band of the range.

The dry spell in the first quarter in Kenya was really felt in the March/April black CTC tea production numbers but the market finally responded in June, when the tea prices rallied 30%. Year to date the market prices are 53% higher, whereas the Kenyan crop in the first half of the year is 22% lower versus 2014.

1.3. Consolidated income statement

Consolidated income statement
		30/06/2015			30/06/2014
In KUSD (condensed)	Before IAS41	IAS41	IFRS	Before IAS41	IAS41	IFRS
Revenue	117 944		117 944	157 702		157 702
Cost of sales	-90 969	3 535	-87 434	-113 664	3 364	-110 300
Gross profit	26 975	3 535	30 510	44 038	3 364	47 402
Variation biological assets		9 659	9 659		8 591	8 591
Planting cost (net)		-8 358	-8 358		-6 732	-6 732
Selling, general and administrative expenses	-12 280		-12 280	-13 042		-13 042
Other operating income/(charges)	- 152		- 152	94		94
Operating result	14 543	4 836	19 379	31 090	5 223	36 313
Financial income	39		39	36		36
Financial charges	- 311		- 311	- 302		- 302
Exchange differences	- 249		- 249	3 390		3 390
Financial result	- 521		- 521	3 124		3 124
Profit before tax	14 022	4 836	18 858	34 214	5 223	39 437
Tax expense	-3 363	-1 186	-4 549	-10 741	-1 061	-11 802
Profit after tax	10 659	3 650	14 309	23 473	4 162	27 635
Share of results of associated companies and joint ventures	4 006	4	4 010	6 279	673	6 952
Result from continuing operations	14 665	3 654	18 319	29 752	4 835	34 587
Profit or the period	14 665	3 654	18 319	29 752	4 835	34 587
Equity holders of the parent	13 598	3 215	16 813	28 138	4 527	32 665

Consolidated gross profit (before IAS41)
In KUSD (condensed)	30/06/2015	%	30/06/2014	%
Palm	22 443	83.2	38 463	87.3
Rubber	651	2.4	1 936	4.4
Tea	700	2.6	136	0.3
Bananas and plants	1 898	7.0	2 053	4.7
Corporate and others	1 283	4.8	1 450	3.3
Total	26 975	100.0	44 038	100.0

The overall turnover decreased by 25.2%. Palm oil (-27.4%) and rubber (-19.8%) decreased primarily as a result of lower world market prices, whereas in the case of bananas the cause lay essentially with lower production volumes and EUR/USD exchange rate fluctuations. By contrast, tea activities reported a 26.6% turnover increase, thanks to improved production volumes and rising market prices.

The gross profit decreased by KUSD 17 063 to KUSD 26 975 (-38.7%), primarily as a result of lower market prices. In the case of palm oil, this lower market price was partly offset by the fact that no export tax was charged in Indonesia during the first six months of 2015, whereas last year that was still as much as USD 99 per tonne. The overall gross profit margin fell by 5% from 27.9% to 22.9%.

The unit cost of sales of our own palm oil production in Indonesia saw an increase in relation to the first months of last year, mainly as a result of lower-than-expected volumes. We anticipate this average unit cost to return to the level of 2014 by the year-end. At Hargy Oil Palms Ltd in Papua New Guinea, the unit cost for palm oil remained virtually stable.

An opposite trend was observed for the rubber activity in Indonesia, with a significant decrease in cost per tonne due to excellent production volumes during the first six months.

Selling, general and administrative expenses diminished by KUSD 762, primarily as a result of movements in the exchange rates of the IDR/PGK/EUR against the USD.

The relatively limited amounts for other operating income and charges were virtually in balance, so that the operating result stood at KUSD 14 543, or KUSD 16 547 lower than last year.

The financial result included the interest on our short-term debt and a very modest exchange result, a direct consequence of our consistently implemented hedging policy.

The effective actual cost rate was 24.0% before IAS41 revisions.

The share in the result of associated companies and joint ventures (KUSD 4 010) derived primarily from PT Agro Muko (KUSD 3 852). The diminished contribution of PT Agro Muko (KUSD -2 983) was due to the lower production volumes and market prices for palm oil referred to earlier. The insurance activities made a virtually stable profit contribution of KUSD 524, whereas in Verdant BioScience/PT Timbang Deli Indonesia we still reported start-up losses (KUSD -366) at the start of the research activities.

The profit for the period, without taking into account the movements resulting from IAS41 revisions, amounted to KUSD 14 665 compared to KUSD 29 752 for the first six months of 2014, which is a 50.7% decrease.

The IAS41 revision consisted of replacing the depreciation expenses included in the cost of sales by the variation in 'fair value' of the biological assets between the end of 2014 and June 2015, less the planting costs and related tax charges. The gross variation of biological assets amounted to KUSD 9 659, primarily as a result of the expansion and growing maturity of the newly planted acreages of our oil palm plantation at Hargy Oil Palms Ltd in Papua New Guinea and the general implementation of an increasing long-term margin for palm oil. Planting costs amounting to KUSD 8 359 reduced the pre-tax net impact to KUSD 4 836, which constitutes the basis for an average deferred tax calculation of 24.5%. Together with the net IAS41 result of the associated companies and joint ventures (KUSD 4), the net positive IAS41 impact, share of the group, was KUSD 3 215.

The net IFRS result, share of the group, including IAS41 revisions, amounted to KUSD 13 598 and is 51.7% lower than that of the first six months of last year.

1.4. Consolidated cash flow

Consolidated cash flow
In KUSD (condensed)	30/06/2015	30/06/2014
Cash flow from operating activities	27 987	47 080
Change in net working capital	-13 819	265
Income taxes paid	-4 642	-13 409
Cash flow from operating activities after tax	9 526	33 936
Acquisitions intangible and tangible assets	-21 980	-23 695
Acquisitions financial assets	0	0
Operating free cash flow	-12 454	10 241
Dividends received from associated companies and joint ventures	4 951	5 003
Proceeds from sale of assets	201	- 131
Free cash flow	-7 302	15 113
Equity transactions with non-controlling parties	0	0
Decrease/(increase) of treasury shares	-208	0
Net free cash flow	-7 510	15 113

In USD per share	30/06/2015	30/06/2014
Weighted average shares outstanding	8 887 305	8 889 740
Basic operating result	2.18	4.08
Basic/Diluted net earnings	1.89	3.67
Cash flow from operating activities after tax	1.07	3.82

In line with the diminished profitability, the cash flow from operating activities also decreased by KUSD 19 093 to KUSD 27 987.

About half of the reduction in working capital (KUSD -13 819) was attributable to short-term variations in stocks and customer/supplier positions. The other half was due to a more structural change in the use of working capital as a result of altered export conditions in Indonesia, which means that, as from the second quarter of 2015, we have to pay our suppliers for all exports immediately by documentary letters of credit.

The main investments during the first six months concerned, besides the usual replacement investments, the payment of additional land compensations and planting of oil palms in the new project in South Sumatra, and maintaining the more than 10 000 hectares of young immature plantations.

The dividends received from associated companies and joint ventures were dividends the group received from PT Agro Muko (KUSD 4 729) and those from the insurance branch (KUSD 222).

The first six months were characterized by a negative net free cash flow of KUSD 7 510 (compared to a surplus of KUSD 15 113 in 2014).

1.5. Consolidated balance sheet

Consolidated balance sheet
In KUSD (condensed)	30/06/2015	31/12/2014
Biological assets (depreciated costs)	153 716	148 748
Revaluation	184 925	180 111
Biological assets (IAS41)	338 641	328 859
Other fixed assets	315 847	315 920
Net assets held for sale	7 163	8 417
Net current assets, net of cash	30 264	26 472
Net cash position	-32 714	-24 617
Total net assets	659 201	655 051
Shareholders' equity, group share	550 337	547 515
Non controlling interest	36 740	35 838
Provisions and deferred tax liabilities	72 124	71 698
Total net liabilities	659 201	655 051

The continuing expansion of the plantations and an increase in the fair value of the existing areas of mainly oil palms led to a further increase in the biological assets, which have now reached KUSD 338 641.

The net current assets, net of cash, increased by KUSD 3 792 through the combined effect of:

• a reduction as a result of the dividend approved by the shareholders and paid in July, totalling KUSD 12 553 (EUR 1.25 per share)

• an increase as a result of a greater working capital requirement (see comment under cash flow).

The negative net cash position after this dividend distribution exceeds 40 million USD.

1.6. Prospects

Productions.

We can report that for palm oil the delayed effects of the drought in 2014 have now been levelled out completely and that production in Indonesia is returning to normal. The projected production increases at the young acreages of UMW/TUM and Hargy Oil Palms in Papua New Guinea are being sustained. Save for possible short-term effects of the relative drought of the last two months, we expect normal production patterns for the rest of the year in palm oil as well as in the other cultures, rubber, tea and bananas. If El Niño should unexpectedly become stronger, the negative impact on volumes will tend to manifest itself in early 2016.

Markets.

The collapse in the Chinese stock market spilled over into the commodity markets from petroleum and metals to agricultural products. At the same time weather patterns have turned around and have been more favorable in the United States, India and South-East Asia, whereby some fears of a very strong El Niño have diminished. However, this weather phenomenon will still play a big role in the second half of the year and it is still expected that production will be negatively impacted. The Indonesian biodiesel mandate will hold the trump card in terms of stock development, but the lack of action by the Indonesian government in the foregoing months is worrying. The introduction of a levy of USD 50 per tonne on all crude palm oil exports as from 16th July onwards will likely not impact that scenario. On the whole, the market will experience a growing stock scenario during the peak production months and it is likely to achieve better prices later in the year.

The economic turmoil in China hit the rubber market strongly during July and prices are back to the lows of the year. This price floor has been very resilient and it is expected to remain a strong support level. We expect prices to trade within the same bandwidth (USD 1 650 – USD 1 900 per tonne FOB for the RSS3 quality) as the first half of the year.

The shortfall in production of black CTC tea in Kenya will not be overcome in the remainder of the year as production has already entered the low cycle. We remain, however, very positive about the future prices. Our Cibuni tea garden will continue to benefit from these higher prices.

Adverse weather conditions led to a reduction in production in banana volumes in South America and Central America (Colombia, Costa Rica, …), keeping them in line with demand, with stable prices being recorded in the summer months. On the world market, we observe a growing demand from the Far East, particularly China, which is currently being met by additional supplies from the Philippines and Ecuador.

Results.

Unlike in previous years, the recent trend in market prices has not allowed us to conclude additional forward sales contracts at higher prices for the projected production volumes of the rest of the year; bearing in mind the recent price trend, we sell our palm oil on the spot market at current price levels. So far, 63% of production was sold at average prices of USD 739/tonne CIF Rotterdam (including premiums), which is about USD 237/tonne (-24.3%) down on the prices of sales realized at the same time last year.

The results of rubber sales are also substantially lower than last year. We have now sold 80% of the projected rubber production volumes at an average USD 1 603/tonne FOB, which is USD 438/tonne (-21.5%) down on the average sales at the same time last year. Only for our Cibuni tea sales are we still positive as regards the as yet unsold quarter of the annual production. Due to the shrinking production volumes in Kenya, the market prices remain favourable for the quality we produce. Bananas from Ivory Coast are exported to Europe at prices set at the beginning of the year.

The relatively low valuation of the local currencies of Indonesia, Papua New Guinea, Ivory Coast and Europe against the USD, and also the lower oil prices and the stable fertilizer prices have a favourable impact on the further development of our production costs in USD terms and fully offset any wage increases that are imposed by the local authorities.

Nevertheless, in mid-July we were unpleasantly surprised by changes in the export tax system in Indonesia, which now also imposes a flat tax of USD 50/ tonne on all exports of crude palm oil, even if the price level of USD 750/tonne is not reached. If market prices remain below that level for the rest of the year, we reckon that this extra charge may well reduce our annual results by as much as USD 2.5 million.

Taking the above into account, we may expect SIPEF's recurrent annual results to be substantially lower than in 2014.

Cash flow and expansion.

Despite the lower market prices, the company's investment policy will continue to focus on the usual replanting of the mature plantations, the sustainable optimization of energy consumption in the factories, and the organic growth of our palm oil activities in Indonesia and Papua New Guinea, and of bananas in Ivory Coast.

In Papua New Guinea, nurseries were set up to provide for a 1 000 hectare expansion, of which so far 659 hectares have already been prepared and half of that planted as well, so that at Hargy Oil Palms we can attain an area of 14 000 planted hectares. The timing of this expansion will depend on the availability of cash flow and may be spread over 2015 and 2016.

In Indonesia, the expansion of our areas at the three projects in Musi Rawas in South Sumatra remains a priority. Of the concessions that were obtained, 7 110 hectares have already been compensated, of which 1 048 hectares this year, and more than 2 200 hectares planted with young oil palms, of which 1 168 hectares in 2015. It remains our goal to exceed the total of 3 000 planted hectares by the end of the year. The low rubber and palm fruit prices are putting additional pressure on the social environment and are having an impact on discussions with the local land users.

The expansion of the banana plantations in Ivory Coast has also begun; the first 70 hectares, which will increase the planted areas by 11.3%, will start to generate additional volumes for the European markets in January 2016. Negotiations for the possible sale of our rubber interests in Papua New Guinea are continuing.

2. Condensed financial statements

2.1. Condensed financial statements of the SIPEF group

2.1.1. Condensed consolidated statement of financial position (See Annex 1)

2.1.2. Condensed consolidated income statement (See Annex 2)

• 2.1.3. Condensed consolidated statement of comprehensive income (See Annex 2)
• 2.1.4. Condensed consolidated statement of cash flows (See Annex 3)
• 2.1.5. Condensed consolidated statement of changes in equity (See Annex 4)
• 2.1.6. Segment information (See Annex 5)
• 2.1.7. Investments in associates and joint ventures (See Annex 6)

2.2. Notes

2.2.1. General information

SIPEF is a Belgian agro-industrial company listed on Euronext Brussels.

The condensed financial statements of the group for the six months ended June 30, 2015 were authorised for issue by the board of directors on August 17, 2015.

2.2.2. Basis of preparation and accounting policies

This report presents interim condensed consolidated financial statements and has been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS). These financial statements are presented in accordance with International Accounting Standard IAS 34, "Interim Financial Reporting". This report should be read in conjunction with SIPEF group's annual financial statements as at December 31, 2014, because the financial statements herein do not include all the information and disclosures required in the annual financial statements. The accounting policies applied are consistent with those applied in SIPEF group's 2014 consolidated financial statements.

During the first six months of 2015, IFRIC 21 – Levies (applicable for annual periods beginning on or after 17 June 2014) has become effective. The application of the new IFRIC 21 – Levies does not have a material impact on the financial statements of the SIPEF group.

SIPEF group did not apply early adoption of any new IFRS standards or interpretations, which were issued at the date of authorization of these interim condensed financial statements but were not yet effective at the balance sheet date. SIPEF group is expecting to apply early adoption of the amendments to IAS 16 and IAS 41 – Agriculture: Bearer Plants, which are expected to be endorsed in the 4th quarter of 2015.

The interim condensed consolidated financial statements have been subject to a limited review by our statutory auditor.

2.2.3. Consolidation scope

There have not been any changes to the consolidation scope of the SIPEF group during this year.

2.2.4. Segment information

See Annex 5.

2.2.5. Equity consolidation – Share of results of associated companies and joint ventures

Due to the application of the IFRS 11 standard relating to Joint Arrangements and Joint Ventures, PT Agro Muko, amongst others, is included in the consolidated financial statements using the equity consolidation method.

Therefore, an additional disclosure has been added to the consolidated financial statements, containing information relating to the associated companies and joint ventures. We refer to Annex 6.

2.2.6. Shareholders' equity

On June 10, 2015, SIPEF's shareholders approved the distribution of a EUR 1.25 gross dividend for 2014, payable as from July 1, 2015.

2.2.7 Net financial assets/(liabilities)

In KUSD	30/06/2015	31/12/2014
Short-term obligations - credit institutions	-67 895	-52 276
Investments and deposits	0	0
Cash and cash equivalents	35 181	25 759
Net financial assets/(liabitlities)	-32 714	-26 517

The short-term obligations have a duration of less than three months and consist of USD straight loans with our bankers of KUSD 47 100 and a commercial paper debt of KUSD 20 795.

From the KUSD 35 181 cash and cash equivalents as per June 30, 2015, KUSD 12 554 was distributed on July 1, 2015 as dividend over 2014.

2.2.8. Financial instruments

The financial instruments were categorized according to principles that are consistent with those applied for the preparation of note 27 of the 2014 financial statements. No transfer between levels occurred during the first six months of 2015.

All derivatives outstanding per June 30, 2015 measured at fair value relate to forward exchange contracts. The fair value of the forward exchange contracts is calculated as the discounted value of the difference between the contract rate and the current forward rate, and is classified as level 2 (fair value determination based on observable inputs). As per June 30, 2015 the fair value amounts to KUSD -365 versus KUSD -1 756 per December 31, 2014.

The carrying amount of the other financial assets and liabilities approximates the fair value.

2.2.9. Related party transactions

There were no changes in transactions with related parties compared to the annual report of December 2014.

2.2.10. Important events

See management report.

2.2.11. Events after balance sheet date

There are no events after the balance sheet date that have a significant impact on the results and/or the shareholders' equity of the group.

2.2.12. Risks

In accordance with Article 13 of the Royal Decree of November 14, 2007, SIPEF group states that the fundamental risks confronting the company are unchanged from those described in the 2014 annual report, and that no other risks nor uncertainties are expected for the remaining months of the financial year.

9

On a regular basis, the board of directors and company management evaluate the business risks that confront the SIPEF group.

3. Certification of responsible persons

Baron Bracht, chairman of the board of directors, and François Van Hoydonck, managing director, confirm that to the best of their knowledge:

• these interim condensed consolidated financial statements for the six month period ending June 30, 2015 are prepared in accordance with IFRS (International Financial Reporting Standards) and give, in all material respects, a true and fair view of the consolidated financial position and consolidated results of SIPEF group and of its subsidiaries included in the consolidation;
• the interim financial report gives, in all material respects, a true and fair view of all important events and significant transactions with related parties that have occurred in the first six months of the fiscal year 2015 and their effects on the interim financial statements, as well as an overview of the most significant risks and uncertainties the SIPEF group is confronted with.

4. Report of the statutory auditor

See Annex 7.

Schoten, August 20, 2015.

For more information, please contact:

F. Van Hoydonck, managing director (GSM +32 478 92 92 82)

J. Nelis, chief financial officer

Tel.: +32 3 641 97 00 Fax : +32 3 646 57 05

finance@sipef.com www.sipef.com (section "investor relations")

SIPEF is a Belgian agro-industrial company listed on Euronext Brussels. The company mainly holds majority stakes in tropical businesses, which it manages and operates. The group is geographically diversified, and produces a number of different commodities, principally palm oil. Its investments are largely ventures in developing countries.

Annex 1 – Consolidated balance sheet

In KUSD (condensed)	30/06/2015	31/12/2014
Non-current assets	657 913	647 792
Intangible assets	45 514	43 453
Goodwill	1 348	1 348
Biological assets	338 641	328 859
Property, plant & equipment	192 862	193 737
Investment property	3	3
Investments in associates and joint ventures	71 829	73 557
Financial assets	3 822	3 822
Other financial assets	3 822	3 822
Receivables > 1 year	469	0
Other receivables	469	0
Deferred tax assets	3 425	3 013
Current assets	116 598	106 789
Inventories	23 725	26 498
Trade and other receivables	39 708	35 197
Trade receivables	27 024	23 795
Other receivables	12 684	11 402
Current tax receivables	5 137	6 751
Investments	0	80
Other investments and deposits	0	80
Derivatives	0	0
Cash and cash equivalents	35 181	27 579
Other current assets	5 257	1 839
Assets held for sale	7 590	8 845
Total assets	774 511	754 581

In KUSD (condensed)	30/06/2015	31/12/2014
Total equity	587 077	583 353
Shareholders' equity	550 337	547 515
Issued capital	45 819	45 819
Share premium	21 502	21 502
Treasury shares (-)	-4 984	-4 776
Reserves	505 125	500 912
Translation differences	-17 125	-15 942
Non-controlling interests	36 740	35 838
Non-current liabilities	75 549	74 711
Provisions > 1 year	1 303	1 479
Provisions	1 303	1 479
Deferred tax liabilities	63 882	62 820
Trade and other liabilities > 1 year	0	0
Financial liabilities > 1 year (incl. derivatives)	0	0
Pension liabilities	10 364	10 412
Current liabilities	111 885	96 517
Trade and other liabilities < 1 year	41 087	40 188
Trade payables	10 722	20 274
Advances received	836	219
Other payables	26 810	14 505
Income taxes	2 719	5 190
Financial liabilities < 1 year	68 260	54 032
Current portion of amounts payable after one year	0	0
Financial liabilities	67 895	52 276
Derivatives	365	1 756
Other current liabilities	2 111	1 869
Liabilities associated with assets held for sale	427	428
Total equity and liabilities	774 511	754 581

SIPEF 2015 1

Annex 2 – Consolidated income statement

	30/06/2015			30/06/2014
In KUSD (condensed)	Before IAS	IAS 41	IFRS	Before IAS	IAS 41	IFRS
	41			41
Revenue	117 944		117 944	157 702		157 702
Cost of sales	-90 969	3 535	-87 434	-113 664	3 364	-110 300
Gross profit	26 975	3 535	30 510	44 038	3 364	47 402
Variation biological assets		9 659	9 659		8 591	8 591
Planting cost (net)		-8 358	-8 358		-6 732	-6 732
Selling, general and administrative expenses	-12 280		-12 280	-13 042		-13 042
Other operating income/(charges)	- 152		- 152	94		94
Operating result	14 543	4 836	19 379	31 090	5 223	36 313
Financial income	39		39	36		36
Financial charges	- 311		- 311	- 302		- 302
Exchange differences	- 249		- 249	3 390		3 390
Financial result	- 521		- 521	3 124		3 124
Profit before tax	14 022	4 836	18 858	34 214	5 223	39 437
Tax expense	-3 363	-1 186	-4 549	-10 741	-1 061	-11 802
Profit after tax	10 659	3 650	14 309	23 473	4 162	27 635
Share of results of associated companies and joint ventures	4 006	4	4 010	6 279	673	6 952
Result from continuing operations	14 665	3 654	18 319	29 752	4 835	34 587
Result from discontinued operations	0	0	0	0	0	0
Profit for the period	14 665	3 654	18 319	29 752	4 835	34 587
Attributable to:
- Non-controlling interests	1 067	439	1 506	1 614	308	1 922
- Equity holders of the parent	13 598	3 215	16 813	28 138	4 527	32 665
Earnings per share (In USD)
From continuing and discontinued operations
Basic earnings per share / diluted earnings per share			1,89			3,67
From continuing operations
Basic earnings per share / diluted earnings per share			1,89			3,67

Consolidated statement of comprehensive income

		30/06/2015			30/06/2014
In KUSD (condensed)	Before IAS 41	IAS 41	IFRS	Before IAS 41	IAS 41	IFRS
Profit for the period	14 665	3 654	18 319	29 752	4 835	34 587
Other comprehensive income:
Items that may be reclassified to profit and loss in subsequent periods:
- Exchange differences on translating foreign operations	-1 184		-1 184	136		136
Items that will not be reclassified to profit and loss in subsequent periods:
- Defined Benefit Plans - IAS 19 R	-281		-281	- 475		- 475
Total other comprehensive income for the year, net of tax:	- 1 465	0	- 1 465	- 339	0	- 339
Other comprehensive income attributable to:
- Non-controlling interests	-23		-23	- 43		- 43
- Equity holders of the parent	- 1 442		- 1 442	- 296		- 296
Total comprehensive income for the year	13 200	3 654	16 854	29 413	4 835	34 248
Total comprehensive income attributable to:
- Non-controlling interests	1 044	439	1 483	1 572	308	1 879
- Equity holders of the parent	12 156	3 215	15 371	27 841	4 527	32 369

Annex 3 – Consolidated cash flow statement

In KUSD (condensed)	30/06/2015	30/06/2014
Operating activities
Profit before tax	18 858	39 437
Adjusted for:
Depreciation	10 618	7 098
Movement in provisions	- 535	470
Stock options	212	212
Changes in fair value of biological assets	-1 302	-1 860
Other non-cash results	927	2 019
Hedge reserves and financial derivatives	-1 391	945
Financial income and charges	189	308
Capital loss on receivables	0	0
Capital gain on sale of investments	0	0
Result on disposal of property, plant and equipment	411	165
Result on disposal of financial assets	0	-1 714
Cash flow from operating activities before change in net working capital	27 987	47 080
Change in net working capital	-13 819	265
Cash flow from operating activities after change in net working capital	14 168	47 345
Income taxes paid	-4 642	-13 409
Cash flow from operating activities	9 526	33 936
Investing activities
Acquisition intangible assets	-2 398	-2 331
Acquisition biological assets	-8 115	-7 079
Acquisition property, plant & equipment	-11 467	-14 285
Acquisition investment property	0	0
Acquisition financial assets	0	0
Dividends received from associated companies and joint ventures	4 951	5 003
Proceeds from sale of property, plant & equipment	201	251
Proceeds from sale of financial assets	0	- 382
Cash flow from investing activities	-16 828	-18 823
Free cash flow	-7 302	15 113
Financing activities
Equity transactions with non-controlling parties	0	0
Decrease/(increase) of treasury shares	- 208	0
Repayment in long-term financial borrowings	0	0
Increase/(decrease) short-term financial borrowings	15 619	8 546
Last year's dividend paid during this bookyear	0	0
Dividends paid by subsidiaries to minorities	- 581	- 215
Interest received - paid	- 184	- 296
Cash flow from financing activities	14 646	8 035
Net increase in investments, cash and cash equivalents	7 344	23 148
Investments and cash and cash equivalents (opening balance)	28 125	17 726
Effect of exchange rate fluctuations on cash and cash equivalents	- 6	- 1
Investments and cash and cash equivalents (closing balance)	35 463	40 872

Annex 4 – Consolidated statement of changes in equity

In KUSD (condensed)	Issued Capital SIPEF	Share premium SIPEF	Treasury shares	Defined benefit plans - IAS 19R	Reserves	Translation differences	Share holders' equity	Non controlling interests	Total equity
January 1, 2015	45 819	21 502	-4 776	-1 756	502 668	-15 942	547 515	35 838	583 353
Result for the period					16 813		16 813	1 506	18 319
Other comprehensive income				-258		-1 184	-1 442	- 23	-1 465
Total comprehensive income	0	0	0	- 258	16 813	-1 184	15 371	1 483	16 854
Last year's dividend paid					-12 553		-12 553	- 581	-13 134
Equity transactions with non-controlling parties							0		0
Other			- 208		212		4		4
June 30, 2015	45 819	21 502	-4 984	-2 014	507 140	-17 126	550 337	36 740	587 077
January 1, 2014	45 819	21 502	-4 776	- 895	460 636	-14 228	508 058	33 828	541 886
Result for the period					32 665		32 665	1 922	34 587
Other comprehensive income				- 432		136	- 296	- 41	- 337
Total comprehensive income	0	0	0	- 432	32 665	136	32 369	1 881	34 250
Last year's dividend paid					-15 041		-15 041	- 215	-15 256
Equity transactions with non-controlling parties							0		0
Other					701		701	- 614	87
June 30, 2014	45 819	21 502	-4 776	-1 327	478 961	-14 092	439 188	34 880	560 967

Annex 5 – Segment information

SIPEF's activities can be classified into segments based on the type of product. SIPEF has the following segments:

- Palm	Includes all palm products, including palm kernels and palm kernel oil, both in Indonesia and Papua New Guinea
- Rubber	Includes all different types of rubber produced and sold by the SIPEF group, both in Indonesia and Papua New Guinea
	- Ribbed Smoked Sheets (RSS)
	- Standard Indonesia Rubber (SIR)
	- Scraps and Lumps
- Tea	Includes both types of tea produced by SIPEF in Indonesia, i.e.:
	- Orthodox tea
	- "Cut, tear, curl" (CTC) tea
- Bananas and flowers	Includes all sales of bananas and flowers originating from Ivory Coast.
- Other	Mainly includes management fees received from non-group companies, commissions charged on sea freight and other
	commissions which are not covered by the sales contract.

The overview of segments below is based on the SIPEF group's internal management reporting. The most important differences with IFRS consolidation are:

• All companies are included per segment at their percentage of interests using the proportionate consolidation method instead of the full consolidation method and the equity method.
• There are no inter-company eliminations.
• Instead of revenue the gross margin per segment is used as the starting point.

In KUSD	30/06/2015	30/06/2014
Gross margin per product
Palm	25 516	44 711
Rubber	674	2 184
Tea	648	137
Bananas and flowers	1 898	2 053
Other	2 833	3 233
Total gross margin	31 569	52 318
Selling, general and administrative expenses	-13 951	-15 029
Other operating income/(charges)	149	- 262
Financial income/(charges)	- 278	- 269
Exchange differences	- 168	3 579
Profit before tax	17 321	40 337
Tax expense	-4 247	-12 833
Effective tax rate	-24.5%	-31.8%
Insurances	524	634
Profit after tax	13 598	28 138
IAS41	3 215	4 527
Profit after tax after IAS41	16 813	32 665

Below we present the segment information per product and per geographical region in accordance with the IFRS profit and loss accounts.

The segment result is revenue minus expense that is directly attributable to the segment and the relevant portion of income and expense that can be allocated on a reasonable basis to the segment.

Gross profit by product

	Revenue	Cost of sales	Gross profit before IAS 41	IAS 41	Gross profit IFRS	% of total
2015 - KUSD
Palm	93 898	-71 455	22 443	2 989	25 432	83.4
Rubber	10 922	-10 271	651	248	899	2.9
Tea	3 991	-3 291	700	31	731	2.4
Bananas and plants	7 848	-5 950	1 898	267	2 165	7.1
Corporate	1 283	0	1 283	0	1 283	4.2
Others	2	- 2	0	0	0	0.0
Total	117 944	-90 969	26 975	3 535	30 510	100.0
2014 - KUSD
Palm	129 321	-90 859	38 463	2 139	40 602	85.7
Rubber	13 619	-11 683	1 936	320	2 256	4.8
Tea	3 178	-3 041	136	32	169	0.4
Bananas and plants	10 073	-8 020	2 053	872	2 925	6.1
Corporate	1 440	0	1 440	0	1 440	3.0
Others	71	- 61	10	0	10	0.0
Total	157 702	-113 664	44 038	3 364	47 402	100.0

The segment "corporate" comprises the management fees received from non group entities, additional commissions on sea freights and any other commissions that are not included in the sales contracts. Under IFRS (IAS41) depreciation on biological assets is not allowed.

Gross profit by geographical segment

	Revenue	Cost of sales	Other income	Gross profit before IAS 41	IAS 41	Gross profit IFRS	% of total
2015 - KUSD
Indonesia	59 977	-44 938	298	15 337	1 290	16 627	54.5
Papua New Guinea	48 845	-40 079	0	8 766	1 978	10 744	35.2
Ivory Coast	7 848	-5 950	0	1 898	267	2 165	7.1
Europe	0	0	974	974	0	974	3.2
Others	2	- 2	0	0	0	0	0.0
Total	116 672	-90 969	1 272	26 975	3 535	30 510	100.0
2014 - KUSD
Indonesia	86 565	-64 680	298	22 183	1 246	23 430	49.4
Papua New Guinea	59 552	-40 902	0	18 650	1 245	19 895	42.0
Ivory Coast	10 073	-8 020	0	2 053	872	2 925	6.2
Europe	0	0	1 142	1 142	0	1 142	2.4
Others	71	- 61	0	10	0	10	0.0
Total	156 262	-113 664	1 440	44 038	3 364	47 402	100.0

Annex 6 – Investments in associates and joint ventures

The SIPEF group has the following percentage of control and percentage of interest in the assocates and joint ventures:

Entity	Location	% of control	% of interest
PT Agro Muko	Jakarta / Indonesia	47.29	44.93
Verdant Bioscience Singapore	Singapore / Republic of Singapore	38.00	38.00
PT Timbang Deli Indonesia	Medan / Indonesia	38.00	36.10
Insurances (B.D.M. NV and ASCO NV)	Antwerp / Belgium	50.00	50.00

The investments in associates and joint ventures consist of the following 2 sectors:

1. Tropical agriculture - PT Agro Muko, PT Timbang Deli and Verdant Bioscience Singapore

2. The insurance sector: B.D.M. NV and ASCO NV.

The total post "investments in associates and joint ventures" can be summarized as follows:

In KUSD	30/06/2015	31/12/2014
PT Agro Muko	53 071	53 976
Verdant Bioscience Singapore	7 627	7 867
PT Timbang Deli Indonesia	1 999	2 129
Insurances (B.D.M. NV and ASCO NV)	9 132	9 585
Total	71 829	73 557

Below we present the condensed statement of financial position of PT Agro Muko, the most important joint venture. These are prepared in accordance with IFRS and are before intercompany eliminations and excluding goodwill.

	PT Agro Muko
In KUSD	30/06/2015	31/12/2014
Biological assets	73 615	73 067
Other non-current assets	27 571	27 979
Current assets	18 163	21 118
Cash and cash equivalents	8 874	11 466
Total assets	128 223	133 630
Non-current liabilities	16 674	17 135
Long term financial debts	0	0
Current liabilities	6 034	9 065
Short term financial debts	0	0
Equity	105 515	107 430
Total liabilities	128 223	133 630

The total post "Share of results of associated companies and joint ventures" can be summarized as follows:

In KUSD	30/06/2015	30/06/2014
PT Agro Muko	3 852	6 835
Verdant Bioscience Singapore	- 240	- 320
PT Timbang Deli Indonesia	- 126	- 197
Insurances (B.D.M. NV and ASCO NV)	524	634
Total result	4 010	6 952

Below we present the condensed income statement of PT Agro Muko, the most important joint venture. This is prepared in accordance with IFRS and is before intercompany eliminations and excluding goodwill.

	PT Agro Muko
In KUSD	30/06/2015	30/06/2014
Inclusion in the consolidation:	47.29%	47.29%
Revenue	24 960	36 967
Depreciation	2 136	2 418
Interest income	16	0
Interest charges	0	- 37
Net result before IAS 41	8 145	13 069
IAS 41	1	1 384
Net IFRS result	8 146	14 453
Share in the consolidation	3 852	6 835
Total share of the group	3 659	6 493
Total share minorities	193	342

Dividends received from associated companies and joint ventures

During the year the following dividends were received:

In KUSD	30/06/2015	30/06/2014
PT Agro Muko	4 729	4 729
Insurances (B.D.M. NV and ASCO NV)	222	274
Total	4 951	5 003

There are no restrictions on the transfers of funds to the group.

SIPEF 2015 2