Slides
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IOI CORPORATION BERHADFY2026 2nd QuarterGroup Results Summary
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1 Table of Contents1. Financial results2. Operating statistics3. Prospects4. Updates on sustainability initiatives
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1. FINANCIAL RESULTS 2
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Profit or Loss - Qtr on Qtr 3 (in RM million) Q2 FY26 Q2 FY25 % changeRevenue3,010.12,965.8 1%Operating profit 433.1 347.0 25%Share of results of associates119.5107.711%Share of results of joint ventures1.71.2 42%Profit before interest and tax554.3 455.9 22%Net finance costs (26.5) (25.1) 6%Net FX translation gain/(loss) on foreign currency denominated borrowings122.4(210.0)nmProfit before tax 650.2 220.8 194%Tax expense(113.7)(105.6)8%Profit for the period 536.5 115.2 366%Earning per share for profit attributable to owners of the parent (sen)8.46 1.79 373%
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Profit or Loss - Year-to-Date 4 (in RM million)YTD FY266 monthsYTD FY256 months% changeRevenue6,061.95,639.07%Operating profit 846.9694.122%Share of results of associates 218.6214.42%Share of results of joint ventures1.21.7 -29%Profit before interest and tax1,066.7 910.217%Net finance costs (53.0) (54.6) -3%Net FX translation gain on foreign currency denominated borrowings123.5 173.8 -29%Profit before tax 1,137.21,029.410%Tax expense(225.7)(194.9)16%Profit for the period 911.5834.59%Earning per share for profit attributable to owners of the parent (sen)14.42 13.25 9%
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Segment Results - Qtr on Qtr 5 (in RM million) Q2 FY26 Q2 FY25 % changePlantation- Operating profit410.5418.7-2%- Associates74.579.4-6%Note 1485.0498.1-3%Resource-- Operating profit/(loss)36.8(89.2)nm- Associates45.028.359%- Joint ventures1.71.242%Note 283.5(59.7) nmOther operations(3.6)0.3nmSegment results564.9438.729%Other unallocated corporate (expense)/income(10.6)17.2nmProfit before interest and tax554.3455.922%Note 1:FV loss on biological assets and derivative financial 15.60.91633%Underlying operating profit500.6 499.00%Note 2:FV (gain)/loss on DFI(16.8)94.1nmUnderlying operating profit66.734.494%*Note: nm = not meaningful
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Segment Results - Year-to-Date 6 (in RM million)YTD FY26 6 monthsYTD FY25 6 months% changePlantation- Operating profit782.8736.4 6%- Associates125.5131.7-5%Note 1908.3868.15%Resource-- Operating profit/(loss)78.7(36.2)nm- Associates93.182.713%- Joint ventures1.21.7-29%Note 2173.048.2259%Other operations(4.8)0.6nmSegment results1,076.5916.917%Other unallocated corporate expense(9.8)(6.7)46%Profit before interest and tax1,066.7910.217%Note 1:FV gain on biological assets and derivative financial (6.1)(16.0)-62%Underlying operating profit902.2 852.16%Note 2:FV loss on DFI24.923.85%Underlying operating profit197.972.0175%*Note: nm = not meaningful
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7 Underlying OP - RBM (Qtr on Qtr & Year-to-Date)(in RM million) Q2 FY26 Q2 FY25% changeYTD FY26 6 monthsYTD FY25 6 months% changeRefinery15.5 (18.4) nm 41.1 (45.0) nmOleochemical7.8 27.4 -72% 69.7 41.6 68%Associates45.0 28.3 59% 93.1 82.7 13%Joint ventures and others(1.6) (2.9) -45% (6.0) (7.3) -18%Underlying operating profit RBM 66.7 34.4 94% 197.9 72.0 175% *Note: nm = not meaningful
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Underlying PBT - Qtr on Qtr & Year-to-Date 8*Note: nm = not meaningful (in RM million) Q2 FY26 Q2 FY25% changeYTD FY26 6 monthsYTD FY25 6 months% change650.2 220.8 194% 1,137.2 1,029.4 10%Exclude non-underlying items:Net FX translation (gain)/loss on foreign currency denominated borrowings and deposits(112.1)189.5nm (110.7)(176.4)-37%Net fair value loss/(gain) on biological assets15.70.81863% (5.4)(16.1)-66%Net fair value (gain)/loss on derivative financial instruments(15.4) 93.5 nm 26.526.8-1%(111.8) 283.8nm (89.6)(165.7)-46%Underlying PBT538.4504.67% 1,047.6 863.721%
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2. OPERATING STATISTICS 9
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Operating Statistics: Plantation (Qtr on Qtr) 1010 Q2 FY26 Q2 FY25 % changeCPO Price (RM/mt)4,224 4,470 -6%PK Price (RM/mt)3,449 3,461 0%FFB Production mt)874 768 14%Average mature area134 139 -4%FFB Yield (mt/Ha)6.525.5218%CPO Productionmt)19616817%CPO extraction rate (%)22.11% 21.51% 3%CPO Cost of production*(RM/mt)1,876 1,877 0%Cost of sales (RM/mt)2,361 2,536 -7%Net cost of sales (RM/mt)1,754 1,932 -9%*Exclude depreciation and amortisation, windfall profit levy and Sabah sales tax
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Operating Statistics: Plantation (Year-to-Date) 1111 YTD FY266 monthsYTD FY256 months% changeCPO Price (RM/mt)4,198 4,271 -2%PK Price (RM/mt)3,485 3,097 13%FFB Production mt)1,651 1,528 8%Average mature area135 140 -4%FFB Yield (mt/Ha)12.26 10.89 13%CPO Productionmt)3653349%CPO extraction rate (%)21.74% 21.43% 1%CPO Cost of production*(RM/mt)1,894 1,889 0%Cost of sales (RM/mt)2,396 2,469 -3%Net cost of sales (RM/mt)1,791 1,924 -7%*Exclude depreciation and amortisation, windfall profit levy and Sabah sales tax
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3. PROSPECTS 12
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Prospects 1313 Crude palm oilprice has shown resilience since the beginning of the year, rising from aroundRM4,000 per metric tonto a peak of approximately RM4,300 per MT before moderating to aboutRM4,100 per MT recently. Looking ahead, CPO price is expected to be supported by seasonal decline in FreshFruit Bunchproduction and firmer demand in the lead up to the upcoming major festival period. Inaddition, soybean oil price, which is currently trading at a large premium to CPO, should continue to lendsupport to CPO demand and price. However, the upside potential may be constrained by a strongerMalaysian Ringgit, the postponement ofB50 biodiesel mandate, and relatively high Malaysianpalm oil inventory levels. On balance, while near term volatility may persist, we expect CPO price to remainsupported above RM4,000 per MT over the next three months.For our plantation segment, FFB production is projected to trend higher, driven by a larger proportion of oilpalms reaching prime age, despite the ongoing accelerated replanting in Sabah. Continued enhancements inestate management practices, increased mechanisation and the rollout of digital initiatives are expected tofurther enhance our productivity. We remain positive on the outlook of the plantation segment and expect itto deliver resilient financial performance in FY2026.The outlook for the refinery and commodity marketing sub-segment continues to be challenging. Salesmargins are expected to remain under pressure due to elevated inventory levels and intense competitionfrom Indonesian producers. While festive-driven demand may help mitigate the near-term headwinds, ourexpertise in producing low-contaminant oils, together with ongoing operational efficiency initiatives, will bekey to sustaining acceptable financial performance.
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1414 The operating environment for the oleochemical sub-segment is expected to remain challenging, withsubdued customer sentiment amid global trade policy uncertainties and geopolitical tensions. Competition,including from Indonesian producers, is expected to continue to place pressure on sales margins and volume.Nevertheless, initiatives to strengthen our long-term customer relationships and expand into higher-valueapplications are expected to mitigate the margin pressures. Overall, we expect the sub-financialperformance to be satisfactory over the coming quarters.For the specialty fats sub-segment, represented by our associate company Bunge Loders Croklaan, the goodsales margin for cocoa butter equivalents is expected to underpin the better performance of the Asianoperations while the completion of the expansion of the New Orleans plant in Q4 FY2026 will furtherstrengthen the performance of the American operations.Overall, despite ongoing market challenges, the Group expects its operating and financial performance forthe remaining quarters of FY2026 to be resilient and satisfactory.
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15 4. UPDATES ON SUSTAINABILITY INITIATIVES
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Update on Sustainability Initiatives 1616 SOCIAL INITIATIVE: A Training of Trainers (ToT) was conducted in Lombok for four NGOs appointed by IOI to deliver Pre-employment Orientation (PEO) training to IOI workers prior to their departure to Malaysia. Actual orientation to the workers will begin after Eid Fitri. SOCIAL INITIATIVE: Collaboration with Asia School of Business & P&G on a project related to RSPO/MSPO certification and improving local employment in plantation and smallholder training. Commitment made in March 6, 2023; Target validated by SBTi in December 8, 2025 SBTi FLAG
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To achieve Carbon Neutral by 2030 for Scopes 1 & 2 1717 Measure current emissionsBaseline in 2015Group GHG emission intensity (1.83 MTCO2e/MT) Set Climate Change Action InitiativeLaunched in 2019Reduce GHG emissions by 42%Promote climate change actionIncrease business resilience Governance structure to drive implementationEstablished Board Sustainability Committee to oversee sustainability matters in 2023Group Sustainability Steering Committee manages EESG risks and opportunitiesAdopt TCFD in 2021 Define pathways to achieve targetsPublished Pathway to Net Zero by 2040 in 2022Reaching net zero through:Nature-based solutionsEngineered solutionsSupply chain Management Integrate financial planningCFDC established in 2023Estimate climate-related financial risksMonitored climate-related financial investments Anchor climate strategy in operationsStrategic Priority #47Rs of CircularityMethane captureSolar panels Repurpose biomass (OPT, EFB, PKS, etc.) Monitor, Report, and AdaptAligning report with IFRS S1 & S2Bursa Malaysia Main Market Listing requirementSBTi validated near-term GHG targets 2015 GHG emissions baseline 2019 Formed CCAi 2022 Set Net Zero by 2040 2025 Short term target: 40% GHG Reduction 2030 Carbon Neutral : Scopes 1 & 2 20401717 Net Zero: Scopes 1, 2 & 3 Climate Transition Plan
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Climate Change Action initiative (CCAi) 1818 Decarbonization Pathway to Net Zero by 2040 NATURE BASED SOLUTIONSCURRENT PROGRESS Reforestation Task Force renamed, expanded to cover biodiversity monitoringEngagement with external stakeholders: Sabah & Peninsular Forestry Dept, BKSDA (Indonesia), etc. NEXT STEPS Reference documents updated to include biodiversity monitoring.Continual implementation of pilot projects at 19 estates covering approximately 404 Ha.Exploring collaborations to assess biodiversity Achievements thus far:In FY 2025, ACHIEVED 46% GHG REDUCTION ahead of short-term target of 40% in 2025Current reduction by Q2 FY2026 is 47%Reduction of Scope 2 for Plantation:5,430 MT CO2e (FY 2019) to 68.5 MT CO2e (FY2025)
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Global Assessments, Ratings & Indices 19 ESG Score: From 23.3 to 21.6 MEDIUM RISK (0 to 100)(3)Worldwide Agriculture Ranking: 1 over 93 ESG Rating : Remain A(AAA to CCC)(3) Lower score represents lower ESG risk (2) Higher percentile represents higher ESG score Score: 85.1% Worldwide Ranking: 20 over 100Malaysia Ranking: 6 over 20 FTSE4Good Score: From 3.6 to 4.0Governance Score: 5.0 ESG Score: Remains C Best of the Best ESG Award2025 Forest (B);Water Security (C); Climate (B)S&P Global Corporate Sustainability Assessment Score: From 47 to 51Ranking: 88thpercentile (0 to 100)(2) Gold(1) Rank in sector Food Products
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Thank you 20