UIE's Third Quarter Report 2020

Highlights from Q1-3

UIE Plc. ("UIE")’s net result in the first nine months of 2020 amounted to USD 62.6 million, which is 55% higher than the USD 40.5 million reported in the first nine months of 2019.

UIE’s share of UP’s net profit increased by 46% to USD 34.4 million due to higher production and higher selling prices:

• UP’s production of CPO and PK increased by 11% and 9%, respectively.
• UP’s average selling prices of CPO and PK increased by 12% and 24%, respectively.

UP has, thus far, been able to continue its operations in Malaysia and Indonesia and avoided Covid-19 outbreaks on the estates and will continue to enforce the various standard operating procedures introduced by the Government as well as internal procedures to work towards keeping its operations going.

The fair value of UIE’s investment in Schörling increased by USD 26.3 million during the first nine months of 2020, compared to USD 16.7 million in the corresponding period of 2019. The impact of the Covid-19 pandemic on the financial markets caused significant negative fair value adjustments to UIE’s investment in Schörling during the first quarter of 2020, where UIE reported a negative fair value adjustment of USD 37.5 million. However, the fair value of the investment in Schörling more than recovered, by USD 63.8 million, during the second and third quarters as equity markets rebounded significantly. While the underlying portfolio companies within Schörling are all affected by the pandemic-driven slowdown in business activity, they have all initiated measures to mitigate the consequences and the extraordinary uncertainties currently prevailing.