Anglo-Eastern Plantations Regulatory News (AEP)

Anglo-Eastern Plantations Plc

("AEP", "Group" or "Company")

Preliminary announcement of results for year ended 31 December 2015

Anglo-Eastern Plantations Plc, and its subsidiaries are a major producer of palm oil and rubber with plantations across Indonesia and Malaysia amounting to some 128,600 hectares, has today released its results for the year ended 31 December 2015.

Financial Highlights

Note: * Based on exchange rate at 22 April 2016 of $1.4409/£

Enquiries:

Chairman's Statement

The Group achieved record production of fresh fruit bunches ("FFB") in 2015. The crop production of 900,400mt, was 5% higher than the previous year (2014: 857,400mt) broadly in line with 9% increase in matured trees. The mills similarly recorded the highest purchase of external FFB in recent years. FFB bought-in from surrounding smallholders in 2015 was 678,200mt (2014: 626,200mt), 8% higher, as the Group offered competitive prices for the external crops. The mills as a result processed 9% more FFB, and increased crude palm oil ("CPO") production by 9% to 321,400mt (2014: 294,200mt).

FFB harvest in Kalimantan exceeded expectation and was higher than last year's production by 65% as matured trees increased from 4,650ha to 7,790ha. This made up for the lower production in other established regions in North Sumatera, Riau and Bengkulu which were adversely affected by four months of drought caused by the El Nino weather phenomenon. The dry spell compounded by the indiscriminate open burning by villagers to clear their land for planting resulted in an unprecedented haze that blanketed parts of Indonesia for months. Sporadic fire from surrounding land encroached onto our plantations resulting in damages of up to 175ha of palm oil in South Sumatera and Kalimantan. The fire burned the ground weeds, cover crops and scorched lower fronds but most of the affected palms will survive and recover. The quick response from our fire patrol teams equipped with proper fire-fighting gear helped to quickly contain the spread of fire. In the aftermath of the forest fires, it was reported that the Indonesian government investigated more than 200 companies and sanctioned 23 companies with suspension to permanent revocation of operating licenses. I am pleased to report that the Group is not involved in open burning and that normal rainfall has since returned.

Despite the increase in crop and CPO production, revenue and profitability suffered as CPO prices fell to a 7-year low. The average CPO Rotterdam price in 2015 was 25% lower at $613/mt, compared to $815/mt in 2014. The Group's revenue was lower by 22% at $196.5 million, compared to $251.3 million achieved in 2014. For the year the Indonesian Rupiah depreciated by 13% against the US dollar, the Group's reporting currency, which also partly explains the lower revenue.

The Group operating profit for 2015, before the biological asset ("BA") adjustment was $42.7 million, 46% lower compared to $78.8 million achieved in 2014. Earnings per share, before BA adjustment decreased to 69.39cts, from 132.26cts in 2014. The Group suffered an operating loss for 2015 at $21.4 million after a downward BA adjustment of $64.1 million as compared to 2014 operating profit of $45.1 million after a downward BA adjustment of $33.7 million. Profit was eroded by losses from five newly matured plantations in Bengkulu, Bangka and Kalimantan. With the current low CPO prices, it will take another three to four years for these plantations to turn in a profit when the FFB yield reaches its optimum level.

At a recent 2015 Indonesian Palm Oil Conference in Bali, vegetable oil analysts forecast that CPO will trade between a moderate price band of $550/mt to $770/mt by middle of 2016. We have seen a pick-up in CPO price in December 2015 to close at $560/mt on concern of lower production arising from the effect of El Nino. Despite this, challenging times are ahead for the Group and the palm oil industry. Earlier this year, the Indian government in its effort to reduce the import of vegetable oil had permitted 100% foreign direct investment in oil palm plantations in India from mid-November 2015. This caused some flutter in the global edible oils industry which is understandable as India is currently the largest consumer of CPO. The slowdown in the Chinese economy and weaker Chinese Yuan continue to hurt the export of CPO. There are however signs that the world's second largest economy and second largest consumer of CPO is stabilizing and clarity on the timing of US interest rate hikes are bolstering speculation that commodities will rebound from the worst year since 2008. China's recent move from a one-child to two-child policy may also bode well for the future of CPO as increased population will drive the demand for vegetable oil.

The over production of crude oil remains a major concern as crude oil prices had plunged to recent twelve year low which undermines the competitiveness of CPO as a source of biodiesel.

In spite of the challenging market conditions the Board has continued to invest in the development of new assets. The Group planted 3,416ha of oil palms in 2015 of which 1,590ha comprised of replanting. This was less than planned, due primarily to delays in finalising agreements with villagers for land compensation payments in Bengkulu, Bangka and Kalimantan.

The 45mt/hr mill in Central Kalimantan built at a cost of $11.2 million has started commercial operation in the third quarter of 2015. At the same time a biogas plant estimated to cost $2.5 million is also being constructed at this mill. Upon completion of the biogas plant by the middle of 2016, it will help reduce the mill reliance on fossil fuel and at the same time reduces the Group's carbon foot print. This will be the second biogas plant within the Group.

The Board is mindful that given the anticipated further capital commitments the level of dividend needs to be balanced against the planned expenditure. The Board is also mindful of shareholders' sentiment and therefore declared a final dividend of 1.75p per share in respect of the year to 31 December 2015 (2014: 3.0p). Subject to the approval by shareholders at the Annual General Meeting, the final dividend will be paid on 11 July 2016 to those shareholders on the register on 10 June 2016.

Last year I highlighted the introduction of the new Law on Plantation by the Indonesian Government in October 2014. The new law inter-alia mandated the Government to prioritise domestic investments in the plantation business development and restricts foreign investments in the same sector based on types of plantation crops, business scale and conditions of a particular region; and possibly in the future, may set a cap on foreign investments.

Following the introduction of the new Law on Plantation by the Indonesian Government in October 2014, the Indonesian Government has recently announced plans to push through a moratorium on new concessions for oil palm plantations in a bid to protect the environment.

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

26 April 2016

Strategic Report

Business Model

The Group will continue to focus on its strength and expertise which is planting more oil palms which includes replanting old palms with low yield, replace 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. We have in the last few years bought and invested in new tracts of land and portions remain to be planted. Good land at reasonable price has become more scarce. The Indonesian government has in 2014 moved to introduce a law to cap the size of new plantations owned by foreign companies. The Group remains committed to use its available resources to develop the land bank in Indonesia as regulatory constraints permit.

The Group's objectives are to provide appropriate returns to investors in the long term from operation as well as expansion of the Group's business, to foster economic progress in the 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

The Group's objectives are to provide an appropriate level of returns to the investors and to enhance shareholders' value. Profitability however is very much dependent on the CPO price which is volatile and determined by supply and demand. In the short term, CPO price remains under pressure due to the abundance of vegetable oil and the falling crude oil prices which undermine the potential of CPO as a source for biodiesel. Nevertheless the Group believes in the long-term viability of palm oil which remains a cheap and the most productive source of vegetable oil in a growing population.

The Group's strategies therefore focus on maximising yield per hectare above 22mt/ha, mill production efficiency of 110%, minimising production costs below $300/mt and streamlining estate management. For the year under review, the Group achieved a yield of 18.4mt/ha, 109% mill efficiency and production cost of $250/mt on Indonesia operations. This compared to 2014 yield of 19.1mt/ha, 115% mill efficiency and production cost of $255/mt. Despite stiff competition for external crops from surrounding millers, the Group is committed to purchase more external crops from third parties at competitive, yet fair prices, to maximise the production efficiency of the mills. With higher throughput, the mills achieved economy of scales 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 foot prints, the Group plans to construct in stages biogas plants at all its mills to trap the methane gas to generate electrical power and at the same time reduces the consumption of fossil fuel. It plans to reduce the greenhouse gas emissions per metric ton of CPO produced in the next two to three years.

The Group will continue to follow-up and offer competitive and fair compensation to villagers so that land can be cleared and 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 European Union ("EU") and with those parts of the Companies Act 2006 applicable to companies preparing their accounts under IFRS.

For the year ended 31 December 2015, revenue for the Group was $196.5 million, 22% lower than $251.3 million reported in 2014 due primarily to the lower CPO price and the weakened of Rupiah against US Dollar. CPO price hit a 7-year low as palm oil inventory reaches new all-time high. The average exchange rate of Rupiah against US Dollar in 2015 was 13,392, 13% lower than 2014 of 11,861.

Group operating profit for 2015 before biological asset adjustment was $42.7 million, 46% less than $78.8 million in 2014. With the current low CPO prices, fives subsidiaries with substantial newly matured oil palms incurred losses and are expected to breakeven in about three to four years when the FFB yield reaches the optimum production level.

FFB production for 2015 was 900,400mt, 5% higher than the 857,400mt produced in 2014. The yield remains below expectation due to wide spread flooding in North Sumatera at the beginning of the year, followed by 4 months of extreme dry weather between the third and fourth quarters of the year across Indonesia and Malaysia and a higher proportion of young palms. FFB bought-in from local smallholders for 2015 was 678,200mt (2014: 626,200mt), 8% higher compared to 2014. The supply of third party crops was lower in the third and fourth quarters of 2015 due to dry weather. The drought induced tree stress resulted in late ripening of the fruits. During the year, FFB processed by the Group's mills was 1.51 million mt, 9% higher than last year of 1.38 million mt and CPO production was 9% higher at 321,400mt, compared to 294,200mt in 2014.

Loss before tax and after BA adjustment for the Group was $19.1 million, 137% lower compared to a profit of $51.2 million in 2014. The BA adjustment was a debit of $64.1 million, compared to a debit of $33.7 million in 2014. The CPO price for 2015 remained weak. It ended the year at $560/mt far lower than the 10-year average CPO price at $750/mt, which is normally used in the calculation of BA. Therefore a benchmarking exercise was made to ensure the directors' best estimate of the price sustainable over the longer term is being used. The directors adopted the recommendation of the valuer who has suggested applying a ratio of 70% of the current CPO price and 30% of the historical price (10-year average) given the assumption to calculate CPO price over the past 10 years is no longer considered to be appropriate. As a result, the directors adopted the CPO price of $625/mt which falls within the valuer's recommended range of $600/mt to $650/mt and the World Bank forecast of CPO price for 2016 at $600/mt. The lower biological value was due to the weakening of Rupiah against US Dollar and also was due to a higher discount rate applied in the determination of biological assets from 16.4% to 16.8%. The higher discount rate is a reflection of the increased sovereign risks in Indonesia. However, this is the last year bearer plants will be fair valued given the change to the IAS 41 which is effective on 1 January 2016.

The average CPO price for 2015 was $613/mt, 25% lower than 2014 of $815/mt.

Due to the material fluctuation of Rupiah and Malaysia Ringgit against US Dollar, a simulation was conducted on the 2014 income statement's major items by applying year 2015 average rate onto these major items. The simulation enabled comparison on a like for like basis eliminating the exchange element. The result is exhibited in the table below:

With the elimination of the exchange element, the revenue for 2015 was lower as a result of the lower CPO price. Despite the increase in production tonnage, the cost of sales for 2015 only increased marginally. The difference of BA adjustment between 2015 and 2014 was greater after the elimination of exchange element.

Earnings per share before BA adjustment decreased by 48% to 69.39cts compared to 132.26cts in 2014. Earnings per share after BA adjustment fell from 77.61cts to (37.58)cts.

Going Concern

The Group's balance sheet remains strong notwithstanding an unrealised exchange loss on translation of foreign subsidiaries of $54.6 million compensated by a land revaluation gain of $3.7 million net of deferred tax. As at 31 December 2015, the Group had cash and cash equivalents of $104.6 million and borrowings of $34.6 million, giving it a net cash position of $70.0 million, compared to $91.0 million in 2014. Net Group's borrowings in the year reduced to $34.6 million (2014: $34.9 million). For these reasons, the Group adopts a going concern basis of accounting and believe the Group will continue operation and meet its liabilities for the foreseeable future.

Business Review

Indonesia

FFB production in North Sumatera, which aggregates the estates of Tasik, Anak Tasik, Labuhan Bilik, Blankahan, Rambung, Sg Musam and Cahaya Pelita ("CPA"), produced 325,200mt in 2015 (2014: 342,900mt), 5% lower than 2014. In January 2015, CPA experienced heavy rainfall that inundated over 2,000ha of the plantation. The evacuation of FFB was not possible until the flood receded. A larger budget will be allocated to build canals and water gates as part of its flood mitigation program at CPA. In October 2015, strong wind in Rambung estate damaged nearly 6,500 matured rubber trees covering an area of 13ha. The area affected will be replanted with oil palms. Dry weather for a period of four months in between the third and fourth quarters of 2015 interrupted the ripening of FFB in Tasik, Anak Tasik and Labuhan Bilik. Over 1,400ha of ageing oil palm was replanted in Tasik in 2015. Replanting was necessary due to declining yield as workers find it difficult to harvest the palm trees which were about 30 years old as they have reached an average height of 16 to 18 metres tall.

Ganoderma fungus and Upper Stem Rot which attacks the productive palms in Anak Tasik, Blankahan and Rambung remains a threat. Water management, good sanitation and high standards of agronomic practices remain the main priority to avoid spreading of the diseases. This includes proper disposal of severely diseased palms after detection. Soil mounding on infected palms was carried out to lengthen the economic life span of oil palms. Replanting is scheduled in 2016 at Anak Tasik due to significant decline in yield attributed to Ganoderma attack. There was no serious insect damage by Oryctes beetle, other leaf eating pests, wild animals and rats.

FFB production in Bengkulu and South Sumatera, which aggregates the estates of Puding Mas, Alno, KKST, ELAP and RAA produced 317,400mt (2014: 304,200mt), 4% higher than 2014. With the dry weather in Bengkulu, about 165km of roads were resurfaced with gravel and laterite soil while another 550km of roads were graded and compacted to improve transport of FFB. As most of the estates are situated close to forest reserves, wild boars and herds of elephants continued to damage palm trees. Deep trenches and fencing provide temporary relief. The protracted negotiation with the villagers over land compensation will have an effect on the future planting in Bengkulu and South Sumatera. CPO production in Alno increased significantly by 27% due to higher purchase of FFB from smallholders and marginally higher own crop production.

FFB production in the Riau region, comprising Bina Pitri estates, produced 122,500mt in 2015 (2014: 116,700mt), 5% higher than 2014. This was achieved despite the region experiencing severe drought and haze resulting from indiscriminate open burning by farmers from July to September 2015 when rainfall averaged below 100mm per month. CPO production improved by 10% due to the higher purchase of FFB from smallholders, despite the competitiveness for external crops from millers. Our mill offered higher prices for external crops raising the mill utilization rate at the expense of a lower operating margin.

FFB production in Kalimantan which comprises of the Sawit Graha Manunggal estates produced 108,100mt in 2015 (2014: 65,700mt) mainly from newly matured oil palm area of 7,792ha. FFB yield has surpassed expectation, despite the sandy soil condition. FFB yield from young trees averaged 14mt/ha. As in other regions in Indonesia, the low rainfall over a four month period of 2015 is likely to affect the FFB production in 2016. A comprehensive soil and water conservation management including applying empty fruit bunch ("EFB") mulching, fronds cut placement, proper drain maintenance have been conducted in sandy soil to minimise early decline in palm trees population due to soil erosion.

Overall bought-in crops for Indonesian operations were 8% higher at 678,200mt for the year 2015 (2014: 626,200mt). The average oil extraction rate from our mills was 21.2% in 2015 (2014: 21.3%).

Malaysia

FFB production in 2015 was 3% lower at 27,200mt, compared to 28,000mt in 2014. The Malaysian operations faced severe shortage in workers due to difficulty in recruiting foreign workers hampering harvesting and estate work. New incentives and increase in monthly wages were also not sufficient to retain workers after their initial two-year contract expired. In 2015, the Malaysian plantations had $0.7 million pre-tax profit after BA adjustment compared to a pre-tax loss of $0.9 million in 2014.

Commodity Prices

The CPO CIF Rotterdam price started the year at $700/mt (2014: $890/mt) and reached a peak of $707/mt in March 2015 before retreating to a 7-year low in August 2015. It staged a slight recovery due to larger imports after price drop to record low and on concern of lower production in 2016. It ended the year at $560/mt (2014: $700/mt), averaging $613/mt for the year (2014: $815/mt).

The soft demand for palm oil due to the abundance of soya oil is likely to curb a quick recovery of the CPO price. The depressed crude oil prices for much of 2015 did not help to boost the competitiveness of CPO as a source of biodiesel. It is widely reported that the El Nino weather phenomenon which brought severe drought across Indonesia and Malaysia for four months in 2015 is likely to cause moisture stress in palm trees. Furthermore, the region was blanketed by haze reducing the sunlight required for photosynthesis process in palms and will likely result in reduced crop production in 2016. A lower production will most likely lead to a gradual increase in CPO price. The successful efforts of Indonesia and Malaysia to introduce higher mandatory blending of biodiesel for industrial and commercial purposes likewise could provide some price support.

Rubber prices averaged $1,269/mt for 2015 (2014: $1,616/mt). Our small area of 502ha of mature rubber contributed a revenue of $1.1 million in 2015 (2014: $1.8 million).

Corporate Development

In 2015, the Group opened up new land and planted 1,826ha of oil palm mainly in Kalimantan, boosting planted area including Plasma by 3% to 65,100ha (2014: 63,500ha). This excludes the replanting of 1,423ha of oil palm in North Sumatera. Another 166ha of ageing rubber trees were replanted with oil palm. New plantings remain behind schedule due to delays in finalising settlement of land compensation with villagers in Bengkulu, Bangka and Kalimantan. The villagers seek compensation beyond what the Group considered fair and reasonable resulting in protracted negotiations. The progress of new planting in Kalimantan was interrupted by prolonged dry weather during a four month period.

The mill construction in Central Kalimantan was completed in the second quarter of 2015. It began commercial operation in the third quarter with an initial capacity to process FFB at a rate of 45mt/hr. There is sufficient space to add a new processing line in the mill to expand the processing capacity to 90mt/hr when the need arises.

Negotiation to sell the surplus power estimated at 5.75 million kwh per year to the Indonesian National Electricity Company from its new biogas plant in North Sumatera is pending approval from authority after completion of a feasibility study. Upon approval, the Company will install electric cables, transformer and switchgears estimated to cost $300,000 to link the biogas plant to the national grid.

The Group has started construction of a second biogas plant in Kalimantan which is expected to be completed by end of next year. This project would contribute to the Group's reduction of carbon footprint.

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 71 mosques and 16 churches in all its estates. In 2015, the Group spent $399,500 to build additional facilities and to maintain these amenities. This includes construction of a new classroom in a school in Bengkulu while a new elementary school in Labuhan Bilik was built and handed over to the local government.

Staff and selected employees are given the opportunity to be trained and to attend seminars to enhance their working skills and capability. In 2015 the Group's Head Agronomist completed his PhD in Soil Science with summa cum laude from the University of North Sumatera. The Group provides free education for all employees' children in the local plantations and communities where they work. In 2015, scholarships amounting to $32,300 were provided to children in surrounding villages and selected employees' children to further their tertiary education in collaboration with universities in Riau and Bengkulu. In total 95 scholarships were given out. Selected under graduates were given opportunities for industrial training during semester breaks. In addition the Group provides funding to construct educational facilities including laboratories, libraries, and computers. The salaries of teachers in the estates and the cost of school buses to transport employees' children to the schools are provided by the Group. Over the years a total of 34 schools have been built with 121 teachers currently employed within our Group estates. In 2015, the Group spent some $552,500 on running the schools. The Group bought a new school bus in Kalimantan taking the tally of school buses operated by the Group in 2015 to 32 vehicles.

The Group continues to provide free comprehensive health care for all its workers as we believe that every employee and their dependents should have easy access to health services. We have established 22 clinics operated by qualified doctors, nurses and hospital assistants in the estates. In addition, the Group organised fogging to prevent spread of dengue mosquitoes. In isolated locations, the Group drill tube wells to provide clean water. Related healthcare expenses for 2015 were $550,800.

A strong commitment to CSR has a positive impact on employees' attitudes and boosts employee recruitment. The Group realizes that employees are valuable assets in order to run an efficient, effective, profitable and sustainable business and operations.

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 new planted areas acquired from 2007 onwards are to be reserved for the benefit of smallholder cooperative scheme, known as Plasma, and the Group is integrating such smallholder developments alongside its estates. In order to aid the development of Plasma scheme, a subsidiary provided a corporate guarantee to a local bank in excess of $16 million to cover loans raised by the cooperative. The plasma development has commenced in stages for its estates in Sumatera and Kalimantan.

The Board supported Kas Desa smallholder village development programme to supplement the livelihood of the villages. The Group has to-date financed, developed and managed 22 smallholder village schemes across four companies.

In addition to education and healthcare which includes the construction of schools, provision of scholarships, books, the Group also develops infrastructure such as construction and repair of 3 bridges and maintain 680km of external roads in 2015. 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.

Indonesian Sustainable Palm Oil

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.

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 the estates and mills in North Sumatera, Riau, Bengkulu and Kalimantan. During the year 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. Standard operating procedures were refined and documented based on sustainable oil palm best practices. The Group 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. In addition to three subsidiaries which were ISPO certified, another subsidiary has been approved for ISPO certification in December 2015. Six companies are at the second stage of ISPO audit while one company is at first stage of certification.

Care For The Environment and Sustainable Practices

As a Group, we highlight the importance of creating awareness and implementation of good environmental management practices throughout the organisation. 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, old palms felled are chipped and left to decompose at 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 and degradation.

Effluent discharged from some mills is initially treated in lagoons before being applied to trenches located between rows of palm trees. Once the effluent dries up, it becomes organic fertilizer for the oil palm and reduces the application and buying of inorganic fertilizers. In some estates, EFB are applied to land where it biodegrades to fertilizers. Through the application of a combination of EFB, organic fertilisers from mill by-products and inorganic fertilisers, the Group is able to raise the fertility of sandy soil in Kalimantan plantations.

The Group's first biogas and biomass project in North Sumatera completed last year will enhance the waste management treatment in the mill and at the same time mitigate greenhouse biogas emissions. The methane gas trapped will be used to generate and supply power to its biomass plant without dependency on fossil fuel. Another biogas plant is being constructed at the new mill in Kalimantan. Further similar undertakings for the Group's mills are planned and shall be implemented in stages. The Group intends to sell surplus power generated to the National Grid.

The Group is committed to implementing good agricultural practices as spelled out in its standard operating procedures for the planting of oil palm. Integrated Pest Management has been adopted to control pests and to improve biological balance.

Barn Owls were introduced to control rats. Beneficial plants of Turnerasp, Cassia cobannesis and Antigononleptosus were planted to attract natural predators for biological control of bagworms and leaf-eating caterpillars. Weeds are controlled selectively by using more environmental friendly herbicide such as Glyphosate.

The usage of Paraquat herbicide and chemicals has been reduced and minimized to control weeds and vermins. The sprayers are also trained in safety and spraying techniques. The chemicals are kept in designated storage and examined at regular intervals. Employees who handled the use of chemicals undergo medical examination. Natural vegetation on uncultivable land such as deep peat, very steep areas and riparian zones along watercourses are maintained to preserve biodiversity and wildlife corridors.

Two mills in the Bengkulu region have been installed with Extended Aeration to enhance the treatment of the mill effluent by mechanical aeration.

All our mills utilize the waste mesocarp fibre from the oil palm fruits as fuel to generate steam from boilers to eventually produce power from steam turbines. The power generated drives all of the processing equipment in mills and estate housing. This helps to reduce reliance on fossil fuel such as diesel in our milling operations.

The Group continues to comply and preserve the High Conservative Value ("HCV") areas recognised by the Department of Forestry.

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.

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 to its composition based on legislative requirement.

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 percentage of women workforce within the Group increased from 21% in 2014 to 30% in 2015.

Employees

In 2015, the number of full time workforce averaged 5,832 (2014: 5,522) while the part-time labour averaged 10,980 (2014: 9,687).

The Group has formal processes for recruitment particularly 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.

The Group has a programme for recruiting graduates from Indonesian universities to join existing employees selected on regular basis to training programmes organised by the Group's training centre that provides grounding and refresher courses in technical aspects of oil palm estate and mill management. The training centre also 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, health and safety.

A large workforce and their families are housed in the Group's housing 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, extensive benefits and privileges help the Group to retain and motivate its employees.

The Group promotes a policy for 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 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 appraisal. In addition, various work related and personal training programmes are carried out annually for employees to promote employee engagement and interaction.

Although the Group does not have a specific policy on 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 three months to March 2016 was 9% higher against the same period in 2015 mainly due to the increase in production from Kalimantan region. It is too early to forecast whether the production will be better for the rest of the year.

The CPO CIF (Cost, Insurance, Freight) Rotterdam price opened the year 2016 at $570/mt and prices are expected to be in the range of $500/mt to $750/mt for the first half of 2016. CPO price is likely to recover if a significant drop in crop production materialises due to the effects of El Nino in 2015.

It was reported that the US Dollar appreciated by approximately 11% (2014: +2%) against the Indonesian Rupiah in 2015 in anticipation of an interest rate hike in the United States and the weak emerging economies. The Rupiah has since strengthened by 4% in 2016 which makes palm oil more expensive for importers.

The continuing rise in income levels and population growth in China, India and Indonesia would expect to drive the consumption of CPO and likely lead to a gradual recovery in CPO prices. The Indonesian and Malaysian government efforts to rein in fiscal deficits by introducing higher mandatory blending of biodiesel could provide some price support.

The rising material costs and wages in Indonesia are expected to increase the overall production cost in 2016. Indonesia's minimum wage has increased at an average rate of between 8% and 15% per annum over the last few years. The Indonesian government recently announced regional hikes in 2016 minimum wage ranging from 7% in Bengkulu to 12% in South Sumatera. These wage hikes will raise overall estate costs and erode profit margins. A depreciating Rupiah would also mean that imports of fertilisers and equipment for the mills and estates will be more costly.

Nevertheless barring any unforeseen circumstances, the Group is confident that CPO demand will be sustainable in the long term on the backdrop of global economic recovery and we can expect a satisfactory profit level and cash flow for 2016.

On behalf of the Board

Dato' John Lim Ewe Chuan

Executive Director, Corporate Finance and Corporate Affairs

26 April 2016

Consolidated Income Statement

For the year ended 31 December 2015

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2015

Consolidated Statement of Financial Position

As at 31 December 2015

Consolidated Statement of Changes in Equity

For the year ended 31 December 2015

Consolidated Statement of Cash Flows

For the year ended 31 December 2015

Notes

1 Accounting policies

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.

The financial information set out below does not constitute the company's statutory accounts for 2015 or 2014. Statutory accounts for the years ended 31 December 2015 and 31 December 2014 have been reported on by the Independent Auditors. The Independent Auditors' Reports on the Annual Report and Financial Statements for the years ended 31 December 2015 and 31 December 2014 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 2014 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2015 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 amendment is effective for the first time in these financial statements but does not have a material effect on the Group's financial statements:

• IAS 19 Amendments - Defined Benefit Plans: Employee Contributions (effective for accounting periods beginning on or after 1 July 2014)

b) New standards, interpretations and amendments not yet effective.

The following new standards, interpretations and amendments are effective for periods beginning after 1 January 2016 and have not been applied in these financial statements:

• IFRS 9 Financial Instruments (effective for accounting periods beginning on or after 1 January 2018)*

• IFRS 15 Revenue from Contracts with Customers (effective for accounting periods beginning on or after 1 January 2018)*

• IFRS 16 Leases (effective for accounting periods beginning on or after 1 January 2019)*

• IAS 16 Amendments - Property, Plant and Equipment (effective for accounting periods beginning on or after 1 January 2016)*

• IAS 41 Amendments - Agriculture (effective for accounting periods beginning on or after 1 January 2016)*

\* These standards and interpretations are not endorsed by the EU at present.

None of the above new standards, interpretations and amendments are expected to have a material effect on the Group's future financial statements except for IAS 16 and IAS 41. The amendments to IAS 16 and IAS 41 change the accounting requirements for biological assets that meet the definition of bearer plants. Biological assets that meet the definition of bearer plants are required to account for as bearer plants in accordance with IAS 16 using either cost model or revaluation model. The produce growing on bearer plants will remain within the scope of IAS 41 measured at fair value less costs to sell.

The biological assets of the Group fall within the definition of bearer plants. With effect from 1 January 2016, immature plantations will be recognised at cost and accumulated until maturity whereas mature plantations will be recognised at historical cost less accumulated depreciation. Immature plantations are subject to impairment reviews. The FFB, which is agricultural produce under the revised IAS 41, will be recognised at fair value less cost to sell at the point of harvest, with changes recognised in profit or loss. However, the Company has yet to reach a decision as to the measurement of the unharvested produce at balance sheet date.

The directors have quantified the financial impact that would have on the Group with the adoption of the amended IAS 16 and IAS 41. The Group would have been reported a profit for the year ended 31 December 2015 of US$24.9 million rather than a loss for the year of US$13.4 million. Included in the adjusted loss for the year was an impairment loss on bearer plants of US$34.1 million. The Group's reported net assets as at 31 December 2015 would have been US$324.5 million rather than US$369.4 million. The impacts on the financial position of the Group are disclosed below:

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.

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.

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 "foreign exchange reserve"). 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 foreign exchange reserve 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 foreign exchange reserve relating to that operation up to 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.

Revenue recognition

Revenue includes

- amounts receivable for produce provided in the normal course of business, net of sales related taxes and levies, including export taxes;

- amounts received for sales of palm kernel shell, rubber wood, biomass products and other income of an operating nature.

Sales of CPO, palm kernel, shell nut, biomass products and rubber slab are recognised when goods are delivered or allocated to a purchaser. Delivery or allocation does not take place until contracts are paid for. Sales of latex are recognised on signing of sales contract, this being the point at which the significant risks and rewards of ownership are passed over to the buyer. Other income mainly consists of amounts received from sales of nut shell, which is recognised when the goods are delivered.

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.

Capitalisation on development activities

Interest capitalisation

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.

Plantation development

Plantation development comprises 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.

Tax

UK and foreign corporation tax is 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.

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 following annual general meeting.

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;

• 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:

• Biological assets (note 9)

• Revalued land - Property, plant and equipment (note 9)

For more detailed information in relation to the fair value measurement of the items above, please refer to the applicable notes.

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.

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.

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:

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

Biological assets

Biological assets comprise oil palm trees and nurseries. The biological process commences with the initial preparation of land and planting of seedlings and ceases with the delivery of crop in the form of fresh fruit bunches ("FFB") to the manufacturing process in which crude palm oil and palm kernel are extracted from the FFB.

Biological assets are carried at fair value less costs to sell determined on the basis of the net present value of cash flows arising in producing FFB. No account is taken in the valuation of future replanting. Biological assets are valued at each accounting date based upon a valuation of the planted areas using a discounted cash flow method by reference to the FFB expected to be harvested over the full remaining productive life of the trees up to 20 years. Areas are included in the valuation once they are planted. However oil palm which are not yet mature at the accounting date, and hence are not producing FFB, are valued on a similar basis but with the discounted value of the estimated cost to complete planting and to maintain the assets to maturity being deducted from the discounted FFB value. Movement in valuation surplus of biological assets is charged or credited to the income statement for the relevant period (BA adjustment).

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. There are no operating leases.

Impairment

Impairment tests on tangible assets 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.

Inventories 

FFB harvested from the biological assets are stated at fair value less costs to sell at the point of harvest. The fair value gain arising on the initial recognition of harvested produce is the result of the FFB weight produced multiplied by the FFB price adjusted for transportation costs to sell. There is an active market for FFB and the price is based on statistics provided by the government for each region.

The gain/(loss) arising on the initial recognition at the point of harvest is recognised in the income statement within the biological asset revaluation. The FFB is transferred to the mill, processed in to CPO and sold within 24 hours so the write off of the FFB is netted off against the initial recognition within the biological asset revaluation.

All other 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.

Financial assets

All the Group's receivables and loans are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are recognised at fair value at inception and subsequently at amortised cost. No impairment provisions have been considered necessary.

Cash and cash equivalents consist of cash in hand and short term deposits at banks with an original maturity of not exceeding three months. Bank overdrafts are shown within loans and borrowings under current liabilities on the balance sheet.

There are no assets in hedging relationships and no financial assets or liabilities available for sale.

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 under Interest capitalisation above.

Trade and other payables are shown at fair value at recognition and subsequently at amortised cost.

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 on property revaluation surpluses.

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 equity; in this case assets and liabilities are offset.

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);

• 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. 

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 share reserve. 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.

Financial guarantee contracts

Where the Company enters into financial guarantee contracts and guarantees the indebtedness of other companies within the Group, the Company considers these to be insurance arrangements and accounts for them as such. In this respect, the Company treats the guarantee contract as a contingent liability until such time that it becomes probable that the Company will be required to make a payment under the guarantee.

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: 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 biological assets, property, plant and equipment are set out in note 9. Assumptions regarding the valuation of agricultural produce at the point of harvest less costs to sell are set out in the inventories accounting policy. The Group's policy with regard to impairment of such assets is set out above.

2 Revenue

3 Finance income and expense

4 Profit before tax

5 Segment information

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.

In year 2015, revenue from 4 customers of the Indonesian segment represent approximately $107.2m (2014: $152.1m) of the Group's total revenue. An analysis of these revenue is provided as below. Although Customer 1 to 4 are over 10% of the Group total revenue, there is no over reliance on these Customers as tenders are performed on a monthly basis. Three of the top four customers are the same as in the prior year.