Interim Results

26 September 2012

Asian Plantations Limited

("APL" or the "Company")

Interim Results for the Six Months ended 30 June 2012

The directors of Asian Plantations Limited (LSE: PALM) (the "Board"), a palm oil plantation company with operations in Malaysia, are pleased to announce its unaudited interim results for the six month period ended 30 June 2012.

Highlights

·; Sale of 6,065 tonnes fresh fruit bunches ("FFB"), a 391 per cent. increase compared to the first half 2011, sold at an average price of RM603 (circa. US$196) per tonne.

·; Issuance of nine and ten year maturity bonds totalling RM100 million (circa. US$ 32.5 million) on 10 May 2012 further strengthening the Company's capital structure.

·; Cash position of US$35.6 million compared with US$28.0 million on 30 June 2011;

·; Closing of the 5,000 ha Dulit acquisition on 28 February 2012;

·; Total Assets position of US$175.2 million compared with US$112.6 million on 31 December 2011;

·; Early conversion of the US$1 million Convertible Bond due 2014 outstanding into equity on 1 June 2012 thereby raising the equity invested in the Company to in excess of US$71 million; and,

·; The Company's mill on-track to be operational by year-end.

Tan Sri Datuk Linggi, Non-Executive Chairman of APL, commented:

"We are now into our fifth year of significant investment and land development. Three of our four estates are now revenue producing. Next year, all four of our estates will be generating revenue. We expect to finish calendar year 2012 with approximately 20,000 tonnes of FFB produced rising to approximately 55,000 tonnes produced in 2013. We expect FFB production to rise consistently each year over the next decade as the estates mature.

"Our state-of-the-art vertical sterilizer crushing mill is scheduled to be operational in December of this year. 2012 will be our last year of selling FFB, as in January 2013, we will be delivering Crude Palm Oil (CPO) to the Bintulu refineries. We have also been approached by other independent palm oil estates seeking to sell their FFB output to our mill, which would further enhance our mill's production volumes in 2013 and 2014.

"As at end June 2012, we had 11,049 hectares planted (excluding roads and common areas) compared with year-end 2011 which saw the Company finish the year with 9,322 hectares planted. We currently have sufficient seedlings maturing and contractors on-site, which gives me the confidence that we will finish this year with 14,200 hectares planted.

"I believe that there is an increasing scarcity for Malaysian titled land, a relative tightness in global edible oil inventories and rising global awareness about the importance of palm oil in the global food supply chain. Coupling these trends with a healthy edible oil price environment, the Board believes that its strategy of assembling properly titled, land parcels in Malaysia, an investment grade rated country, will generate substantial value for the Company's shareholders and I look forward to providing shareholders with further updates regarding our progress during the remainder of the calendar year."

For further information contact:

Unaudited Interim Condensed Consolidated Income Statement

for the six-month period ended 30 June 2012

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Unaudited Interim Condensed Consolidated Statement of Comprehensive Income

for the six-month period ended 30 June 2012

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Unaudited Interim Condensed Consolidated Statement of Financial Position as at 30 June 2012

Unaudited Interim Condensed Consolidated Statement of Financial Position as at 30 June 2012 (cont'd)

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Unaudited Interim Condensed Consolidated Statement of Changes in Equity

for the six-month period ended 30 June 2012

Unaudited Interim Condensed Consolidated Statement of Changes in Equity

for the six-month period ended 30 June 2012 (cont'd)

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Unaudited Interim Condensed Consolidated Statement of Cash Flows

for the six-month period ended 30 June 2012

Unaudited Interim Condensed Consolidated Statement of Cash Flows

for the six-month period ended 30 June 2012 (cont'd)

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

1. Corporate information

The interim condensed consolidated financial statements for the six months ended 30 June 2012 were authorised for issue in accordance with a resolution of the directors on 26 September 2012.

Asian Plantations Limited (the "Company") is a limited liability company incorporated and domiciled in the Republic of Singapore and listed on the Alternative Investment Market ("AIM") of the London Stock Exchange.

The registered office of the Company is located at No.14 Ann Siang Road, #02-01, Singapore 069694.

The principal activity of the Company is that of investment holding. The principal activities of the subsidiaries are development of oil palm plantation.

During the financial period, the Group incorporated a new subsidiary in Singapore under the name APL II Pte Ltd. The principal activity of this subsidiary is dormant.

During the financial period, an indirect subsidiary, Jubilant Paradise Sdn. Bhd. was diluted from 100% to 60% equity interest pursuant to a Shareholders' Agreement with a Malaysian entity to mutually develop oil palm plantation land.

2. Basis of preparation and changes to the Group's accounting policies

Basis of preparation

The interim condensed consolidated financial statements for the six months ended 30 June 2012 have been prepared in accordance with IAS 34 Interim Financial Reporting.

The interim condensed consolidated financial statements are unaudited and do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2011.

The interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

The financial statements are presented in United States Dollars ("USD") to facilitate the comparison of financial results with companies in the oil-palm industry and all values are rounded to the nearest thousand ("USD'000") except when otherwise indicated.

New standards, interpretations and amendments thereof, adopted by the Group

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2011.

2. Basis of preparation and changes to the Group's accounting policies (cont'd)

New standards, interpretations and amendments thereof, adopted by the Group (cont'd)

The following amendments to the IFRSs standards did not have any impact on the accounting policies, financial position or performance of the Group:

·; IAS - 12Deferred Tax: Recovery of Underlying Assets (Amendment)

This amendment to IAS 12 includes a rebuttable presumption that the carrying amount of investment property measured using the fair value model in IAS 40 will be recovered through sale and, accordingly, that any related deferred tax should be measured on a sale basis. The presumption is rebutted if the investment property is depreciable and it is held within a business model whose objective is to consume substantially all of the economic benefits in the investment property over time, rather than through sale. Specifically, IAS 12 will require that deferred tax arising from a non-depreciable asset measured using the revaluation model in IAS 16 should always reflect the tax consequences of recovering the carrying amount of the underlying asset through sale. Effective implementation date is for annual periods beginning on or after 1 January 2012.

The Group does not have any investment properties nor assets under IAS 16 valued under the revaluation model, hence there is no impact on the financial statements of the Group.

·; IFRS - 7 Disclosures - Transfer of Financial Assets (Amendment)

The IASB issued an amendment to IFRS 7 that enhances disclosures for financial assets. These disclosures relate to assets transferred (as defined under IAS 39). If the assets transferred are not derecognised entirely in the financial statements, an entity has to disclose information that enables users of financial statements to understand the relationship between those assets which are not derecognised and their associated liabilities. If those assets are derecognised entirely, but the entity retains a continuing involvement, disclosures have to be provided that enable users of financial statements to evaluate the nature of, and risks associated with, the entity's continuing involvement in those derecognised assets. Effective implementation date is for annual periods beginning on or after 1 July 2011 with no comparative requirements.

·; IFRS - 1 Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendment)

When an entity's date of transition to IFRS is on or after the functional currency normalisation date, the entity may elect to measure all assets and liabilities held before the functional currency normalisation date, at fair value on the date of transition to IFRS. This fair value may be used as the deemed cost of those assets and liabilities in the opening IFRS statement of financial position. However, this exemption may only be applied to assets and liabilities that were subject to severe hyperinflation. Effective implementation date is for annual periods beginning on or after 1 July 2011 with early adoption permitted.

The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

3. Significant accounting judgements and estimates

The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future period.

3.1 Judgements made in applying accounting policies

In the process of applying the Group's accounting policies, management has made the following judgements, apart from those involving estimations, which has the most significant effect on the amounts recognised in the consolidated financial statements:

(a) Determination of functional currency

The Group continues to determine its functional currencies to be Ringgit Malaysia ("RM") based on management's assessment of the economic environment in which the entities operate and the entities' process of determining sales prices.

(b) Fair value of biological assets (nursery)

The biological assets are stated at fair value. Management made the judgement that cost approximates fair value of the biological asset for nursery because little biological transformation has taken place since its initial cost incurrence. The carrying amount of nursery as at 30 June 2012 is USD1,417,000 (31 December 2011: USD1,053,000). 

3.2 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are described below. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

(a) Useful lives of property, plant and equipment

There are no changes to the estimated economic useful life of property, plant and equipment of within 5 to 60 years.

(b) Impairment of non-financial assets

An impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on available data from binding sales transactions in an arm's length transaction of similar assets or observable market prices less incremental costs for disposing the asset. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from projected net cash flows over a period of 25 productive years of oil palms from financial budgets approved by management and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the asset's performance of the cash generating unit being tested. Based on management's analysis, goodwill is not impaired as at 30 June 2012.

3. Significant accounting judgements and estimates (cont'd)

3.2 Estimates and assumptions (cont'd)

(c) Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Group establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective company's domicile. As the Group assesses the probability for litigation and subsequent cash outflow with respect to taxes as remote, no contingent liability has been recognised.

The carrying amount of income tax recoverable at 30 June 2012 was USD7,000 (31 December 2011: USD7,000).

Deferred tax assets are recognised for all unused tax losses, unabsorbed capital and agricultural allowances to the extent that it is probable that taxable profit will be available against which the losses, unabsorbed capital and agricultural allowances can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

(d) Share-based payment transactions

The Group measures the cost of equity-settled transactions with directors, employees and consultants by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them.

4. Seasonality of operations

The Group's plantation operations are affected by seasonal crop production, weather conditions and fluctuating commodity prices. As a result, the comparison of half-year to half-year results may not be a good indicator of the overall trend of the Group's plantation operations or of the results for the whole of the financial period.

5. Operating segment information

The Group continues to be organised as one segment and the Chief Operating Decision Makers review the profit or loss of the entity as a whole, which is the plantation segment and in one geographical location, Malaysia. Accordingly, no segmental information is prepared based on business segment or on geographical distribution as it is not meaningful.

6. Revenue

Revenue represents sale of fresh fruit bunches.

7. Other operating income

8. Administrative expenses

Included in administrative expenses are audit, tax, legal and other professional fees amounting to USD608,000 (six months ended 30 June 2011: USD345,000) and share-based payment transaction expense of USD949,000 (six months ended 30 June 2011: Nil) related to the Company's share option scheme (Note 21).

9. Other operating expenses