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To B o Becom ome A A Wor World Clas Class Plant ntatio ion n Company ny Invest estor P Presen esentation 30 June 2018 DISCLAIMER NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR IN


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SLIDE 1

Invest estor P Presen esentation

30 June 2018

Wor World Clas Class

Plant ntatio ion n Company ny”

“To B

  • Becom
  • me A

A

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SLIDE 2

2

DISCLAIMER

NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR IN ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW. The information that follows is a presentation of certain information about PT Sawit Sumbermas Sarana Tbk. (“SSMS” ), its parent, PT Citra Borneo Indah (“CBI”, and together with SSMS, the “Parent Guarantors”), and their respective subsidiaries (together, the “Group”) prepared by the Parent Guarantors. The information contained herein (including, among others, the market data, industry data and other industry statistics included in this presentation derived from public or third party sources) has not been independently verified and thus no representation or warranty, express or implied, is made as to the fairness, accuracy, currency, completeness or correctness of the information, opinions and conclusions contained in this presentation by the Parent Guarantors, the Issuer or any of the Subsidiary Guarantors referred to herein (collectively, the “Company Parties”), BNPP Paribas, Citigroup Global Markets Singapore Pte. Ltd., CIMB Bank (L) Limited (collectively, the “Joint Lead Manager”) or any of their respective directors, officers, employees, advisors, affiliates or agents. Accordingly, no reliance should be placed on the fairness, accuracy, currency, completeness or correctness of this presentation, nor any inferences drawn from the manner in which the contents have been compiled and presented. In addition, no person has been authorized to give any information or to make any representation not contained in and not consistent with this material and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of the Company Parties or the Joint Lead Managers. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which none of the Company Parties or their advisors or representatives is under an obligation to update, revise or affirm. Past performance information in this document should not be relied upon as an indication (and is not an indicator) of future performance. The information communicated in this presentation contains certain statements that are or may be forward looking. These statements include all statements other than statements of historical facts and typically contain words such as “will”, “expects” and “anticipates” and words of similar import. By their nature forward-looking statements involve risks and uncertainties because they relate to events and depend

  • n circumstances that may or may not occur in the future. Any investment in securities issued by the Issuer will also involve certain risks. There may be additional material risks that are

currently not considered to be material or of which the Company Parties and their advisors or representatives are unaware. Against the background of these uncertainties, readers should not rely on these forward-looking statements. None of the Company Parties, the Joint Lead Managers or any of their respective directors, officers, employees, advisors, affiliates or agents assumes any responsibility to update forward-looking statements or to adapt them to future events or developments. This presentation should not be used as the basis for any financial decision to invest in any securities or participation in any transaction. This presentation does not purport to, and does not, contain all of the information that may be required to evaluate factors relevant to a recipient making any investment decisions. Each recipient should make its own independent appraisal of, and investigation into, the financial condition, creditworthiness, affairs, status and nature of the Group as the basis of any investment decision. Opinions expressed in this presentation are subject to change without notice. To the maximum extent permitted by law, none of the Company Parties, the Joint Lead Managers, nor their respective directors, officers, employees, advisors, affiliates or agents accepts any liability whatsoever, including, without limitation, for any loss howsoever arising from or in connection with any use to which this presentation may be put by a recipient or otherwise or as a result of, or arising from anything expressly or implicitly contained in or referred to in this presentation. This presentation has been prepared for information purposes only. Any recipient of this presentation and its directors, officers, employees, agents and affiliates must hold this presentation and any information provided in connection with this presentation in strict confidence and may not communicate, reproduce, distribute or disclose to any other person, or refer to them publicly, in whole or in part at any time. This presentation is not a prospectus or other offering document under any law and does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This presentation is being presented to you on the basis that you have confirmed you are not located or resident in the United States and, to the extent you purchase the securities described herein, you will be doing so pursuant to Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The securities of the Issuer have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered within the United States absent registration under or an applicable exemption from the registration requirements of the United States securities laws. Any public offering of securities to be made in the United States will be made by means of a prospectus. Such prospectus will contain detailed information about the company making the offer and its management and financial statements. No public offering of securities is to be made by the Issuer in the United States. The Securities may not be offered or sold in the manner that constitutes a public offering in Indonesia under Law Number 8 of 1995 regarding Capital Markets. In particular, neither the information contained in this presentation nor any copy hereof may be, directly or indirectly, taken or transmitted into or distributed in the United States or any

  • ther jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of U.S. or other national

securities laws. No money, securities or other consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted. By attending this presentation, you acknowledge that you will be solely responsible for your own assessment of the market position of the Group and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Group. The information contained in this presentation is provided as

  • f the date of this presentation and is subject to change without notice. By accepting delivery of this presentation, the recipient agrees to accept and be bound by the statements,

restrictions and limitations set forth herein.

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SLIDE 3

3

Highl ghlight hts

Gross Margin increased 24% Year-on-Year EBITDA increased 28% Year-on-Year Strong production: Nucleus FFB rise 33% Production: 2 new CPO mills under construction

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SLIDE 4

4

Financ ncial highl hlight ghts

  • Sales increased to Rp333 billion +21.4%
  • EBITDA increased to Rp188 billion +27.9%
  • First Global US$ bond issuance by an Indonesian CPO Plantation in 12 Years
  • SSMS shares a mainstay of the LQ45 – Indonesia’s high volume blue chip Index
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SLIDE 5

5

Key ey Cred Credit H Highlights

03

In Intr trod

  • duction
  • n

01 01

Business O ness Overv erview

02

Oth ther C Com

  • mpa

pany In Infor

  • rmation
  • n

06

Operat atio ional A Anal alys ysis is

04

Fina nanci ncial A Analysi sis

05

Table o e of Co Conten ents

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SLIDE 6

6

Sawit awit S Sum umbermas as S Sar aran ana a – Fas Fast G Growi wing P Pal alm O Oil il P Plan antation C Compan any in y in Indonesia

11 11.5 MT/h T/ha

FFB Yi Yiel eld p per er Mature H Hect ectare(4

(4)

9 y years rs

Average ge Pl Plan ant M Mat aturity(2

(2)

3.2 MT/ha ha

CP CPO Yi Yiel eld p per er Mature H Hect ectare(4

(4)

22.9%

Oil Extrac actio ion R Rate(3)

3)

71,1 ,119 19 Ha Ha

Plant nted Are Area(2

(2)

  • Founded in 1995, SSMS is a fast growing Central Kalimantan-based palm oil plantation company

with young maturity profiles (9 years) and strong yields

  • SSMS has 95,770 Ha of prime land under management, with most areas having mineral soil

characteristics, flat terrain, as well as land permits / land rights, and are strategically located to key infrastructure

  • SSMS owns and operates 19 oil palm estates, covering 71,119 hectares of planted area, which

includes six palm oil mills and one kernel crushing plant

  • SSMS’s 15,902 Ha of unplanted area serves as base for organic growth

Citra Borneo Group (68.88%) Publi lic PT

  • PT. Mitra

ra Mendawai S Sejati (MMS MMS)

  • PT. K

Kalimantan Sawit it Abadi di (KSA) A)

  • PT. M

Mirza P Pratama P Putra (M (MPP PP) PT

  • PT. Menteng

ng Kenc ncana na M Mas (MKM) M) PT

  • PT. Sawit

it Multi U i Utama (S (SMU) PT

  • PT. Tanj

njung ng Sawit it A Abadi (TSA) A)

  • PT. Citra Borneo

Utama (CBU) PT.

  • T. S

Sury urya Bo Born rneo I Industri (SBI) I) 19% 19% 99% 99% 99% 99% 99% 99% PT.

  • T. Citra

ra Bo Born rneo I Indah (C (CBI) 53.75% PT.

  • T. Put

utra Bo Born rneo A Agro ro Lestari ri 10.22% 36.03%

COMPAN ANY O OVERVI RVIEW SHAREHOLDING S STRU RUCTURE1

Note: 1. Post the reorganization of CBI based on the shareholders register of the Company as of December 31, 2017. 2. As at 30 June 2018. 3. For the period

  • f 1H2018. 4. For the period of 1H2018.

81% 81%

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SLIDE 7

7

  • 1

3 8 15 18 25 31 36 41 46 50 51 59 66 68 71 71

1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H18

Key y Compan any M y Mil ilestones

Total Planted Area (‘000 Hectares)

1995 1995 PT Sawit Sumbermas Sarana was incorporated in Central Kalimantan 2000 2000 First 103Ha palm oil plantation planted 2006 2006 First production of CPO at Sulung Palm Oil Mill 2009 2009 Planted area surpasses 30,000Ha; Natai Raya Palm Oil Mill commissioned 2010 2010 Annual CPO production surpasses 100,000MT 2011 2011 Third Palm Oil and Kernel Crusher Plant commissioned at Suayap 2012 2012 Annual CPO production surpasses 200,000MT 2013 2013

  • Fourth Palm Oil Mill commissioned at

Selangkun

  • Listing on the Indonesia Stock Exchange

with 1.5 billion new shares issued 2015 2015 Total planted area of 66,201Ha post the acquisition of TSA, SMU, MKM and MPP 2014 2014 Annual FFB processing surpasses 1,000,000MT 2016 2016 Total planted area of 68,307Ha 1H 1H18

  • Total planted area of 71,119Ha

with mill capacity of 375MT/hour

  • Targeting to expand plantation

by 4,000Ha in 2018

slide-8
SLIDE 8
  • 2. Busi

siness ss Overview

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SLIDE 9

9

HGU 46,276 Location Permit 36,583 Others 12,911

Sizable e Land ndbank nk with P Potential U Upside f fro rom U Unp nplant nted Are Area Lan and R Righ ights S Secured f for L Lar arge ge Po Portion o

  • f Landban

ank High Yielding Plantations…

(1)

…Despite Young Profile of Plantations

Busi siness ss Ov Over erview ew

Immature (1-3 years)

Average Age: 1 year

Young Mature (4-7 years)

Average Age: 5 years

Prime (8-20 years)

Average Age: 12 years

Planted Area, 71,119 Essential Infrastructure , 2,945 Conservation Area, 5,804 Other Unplanted Area, 15,902

  • Substantial room for organic growth via

unplanted reserves

  • Most of the landbank has already
  • btained location permits and land rights
  • High and consistent CPO production and
  • il extraction rates (“OER”)
  • Using high-yielding 2nd generation seeds

from major providers including Lonsum, Socfin, Damimas and TopasAsianAgri

Data as at 30 June 2018. Note: 1. Includes Cadastral (have gone through cadastral process but have yet to obtain HGU) and relinquished land area (from previous owners which have not been submitted for cadastral process). 2. The Location Permits for 27,687 hectares have expired and are in the process of being extended.

(2)

296,329 321,238 289,653 343,059 212,007 23.5% 23.7% 23.4% 23.1% 22.9%

16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000

2014 2015 2016 2017 1H18

CPO Production (MT) OER (%)

65% 10% 25%

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SLIDE 10

10 Plantat atio ion Pr Processin ing Pl Plan ants High igh Q Qualit ity Pr Products

Processing Plant from FFB to CPO with a total installed capacity of 375MT/hour

Suppo ported ed with g h group l p lives estock s syner ergy

  • Integration of cattle support
  • perations and government plan for

beef consumption

  • Reduction of weeding, integrated with

breeding and fattening

  • Combined organic fertilizer to

improve productivity and cost efficiency

  • Current capacity utilization set to improve

in line with planted area growth

Total 71,119 Ha planted area across Central Kalimantan To support customers for high quality Crude Palm Oil and Crude Palm Kernel Oil, which can be used as feedstock for diverse CPO refinery products

  • Generating a high Oil Extraction Rate at the CPO mill of 22.9% (CPO);

4.5% (Palm Kernel); and 37.9% (Crude PKO).

  • Young and high-yielding plantations with average maturity profile of 9

years

  • One of the highest yielding CPO plantations in Indonesia

To suppo port various c s customer ers, s, b both h dom

  • mestic a

and ov

  • verseas
  • 42.0% of FY17 sales for domestic

usage;

  • Remaining 58.0% in FY17 to export;
  • Supported by a branch office in

Jakarta; and

  • Operated by 5,181 permanent

employees (as of 31 Dec., 2017)

Busi siness ss Ov Over erview ew (Cont nt’d ’d)

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SLIDE 11

11

Ou Our Co Commitmen ent to Sust stainability

Target 100% 100% R RSPO C Certi tification b by 2020 2020 2018 2018 2019 2019 100% RSPO Roadmap

 SSMS and MMS mills, which produce c.56% of total CPO in 2016 are RSPO certified since 2013  ISPO certification for Kenambui, Sulung, Rangda, Kondang, Pulau, Selangkun, and Rungun Estates since 2013  Aiming for all estates and operations to be RSPO certified by 2020

 SSMS has partnered with the Borneo Orangutan Survival Foundation (“BOSF”) to purchase and maintain Salat Island for the conservation of orangutans  SSMS has budgeted for the cost of the orangutan conservation programme

BOSF O Orangu gutan an C Conservat atio ion

2020 2020

Init itia iatio ion o

  • f RSPO

Cert rtification P Pro rocess f for r our r Smallho holder ers & s & Suppl ply Chains

MKM KM MPP PP TS TSA SMU MU KS KSA

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SLIDE 12

12

  • In cooperation with the Borneo Orangutan Survival Foundation (BOSF), BKSDA and Government of Central Kalimantan, PT Sawit Sumbermas Sarana Tbk. established a conservation

area for orangutans on the island of Nusa Salat;

  • Pulau Badak Besar dan Badak Kecil were selected due to their location around the island of Nusa Salat and suitability for orangutan conservation habitats; and
  • We will work closely with pother stakeholders to encourage responsible ecotourism for orangutan conservation.

Protect O Oran angut utan an H Hab abit itat ats

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SLIDE 13

13

  • Comply with certifications;
  • Study high conservation areas;
  • No development of peatlands;
  • Zero burning policy;
  • Community driven;
  • Partial self-generated electric power support;
  • Conservation areas cover 6.2% within the plantation area;
  • Free medical facilities;
  • Education/tuition fees;
  • Scholarships;
  • Partnership with BOSF; and
  • Contribution to the GDP of Central Kalimantan

Sup upport t the Nat Natio ion wit with E Environmental ally Fr y Friendly y Actio ions…

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SLIDE 14

14

Cult ltural, l, S Social a l and Com Community Pr Prog

  • gram

Em Empowering ng Educa catio ion P Program am Hea Health Empowerme ment

Accommodate residents with food and commodity stocks, and treatment plans

Env Environment ntal Con Conservation

  • n Pr

Prog

  • gram

Infra nfrastructure re Pr Prog

  • gram

Pro rogra gram fo for Ec r Econo nomic Empowermen ent C t Commun unity ty

Affordable markets, basic food distribution, development of places of worship Scholarships for children, free school admission, teacher training, Internships, Learning Media and Equipment Increase awareness about the importance of healthcare and wellness Free diagnosis, communal treatment, blood donor programs Tree replanting and treatment 1 million tree plan to be developed, plant maintenance Dedicated to projects that bring the company and community together Water supply developments, road and bridges, village electrification Provide opportunities to increase community self- reliance Assist in Working Capital loans, Integrated Farming & Fishery and Disability Assistance Participate in knowledge- sharing about plantations, industry and entrepreneurship

Consiste tently Su Support H Harmonious Rela lati tionships w with th A All Sta ll Stakehold lders

Corporate G Governanc ance “ “We d do car are”: C Car are f for the C Company ny, P People, E Env nvir ironm nment nt and and for t the C Country, I Ind ndonesia

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SLIDE 15
  • 3. K

Key ey Ma Market et & Op Oper erating Highl hlights

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SLIDE 16

16

Up to 33 MT/Ha during steady state

Young Maturit ity y Profil ile Provid idin ing V Visibil ilit ity f for F Future P Productio ion G Growth

14 18 22 25 28 29 30 31 32 32 33 32 31 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 23 24 25

Prime M e Mature e (8 – 20 y years rs) 65% 65% Young M Matu ture ( (4 4 – 7 y years rs) 25% 25% Immature ( (1 – 3 y years rs) 10% 10%

Total Pl Plan anted A Area by by Pl Plan anted Year ar (Ha) a)

103 174 336 2,796 5,009 6,978 2,556 6,765 6,002 7,060 8,432 5,445 2,677 1,042 8,699 2,129 4,057 818 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Theoretica cal Yi Yiel eld b by No. o

  • f Yea

Years ( s (MT/Ha)

Pick up in production yield as trees move from young mature to prime stage Pick up in production as immature trees move into young mature stage

Young ng a age e profile w e will s support a a cont ntinued ed i increa eased ed i in production o n of F FFB over er t the e nex ext s sev ever eral y yea ears w with m minimal i increa eases es in in production c costs ts o

  • r c

capita tal e expenditu tures.

1

slide-17
SLIDE 17

17

Jetty, bulking facility & future refinery SMU MPP

Kabupaten Lamandau Nanga Bulik

SSMS

Kabupaten Sukamara Pangkalan Bun

TSA MMS KSA

Kabupaten Kotawaringin Barat Iskandar Airport Kumai Port Jetty, bulking facility & future refinery CENTRAL KALIMANTAN WEST KALIMANTAN JAVA SEA

MKM

Tr Transportation a and i infrastructure be benefits

 All assets are concentrated in the same area within a 60km radius  Covered by a dense network of “all weather” roads built to ensure

that every part of the plantations is easily accessible at all times

 Proximity to Kumai Port and Iskandar Airport, and located along

the Trans-Borneo highway

 Well established infrastructure

Cost st be benefits f from o

  • perational sy

synergies

 Lower transportation costs and optimal logistics  Higher quality of FFB and CPO products due to efficient

transportation (lower FFA %)

Central K l Kali limantan’s c cli limate i is i s ideal f l for C CPO p O production

 High rainfall levels at approximately 2,800mm – 3,000mm of

rainfall a year with at least 4.5 – 5 hours of sunshine daily

 High mineral content soil with small proportion of shallow peat

soil

 Mean annual temperature of 31°C and high humidity  Relatively flat and undulating reduces planting, maintenance and

harvesting costs Plantation Entities

KSA =

  • PT. Kalimantan Sawit

Abadi MKM =

  • PT. Menteng Kencana

Mas MMS =

  • PT. Mitra Mendawai

Sejati MPP =

  • PT. Mirza Pratama Putra

SMU =

  • PT. Sawit Multi Utama

SSMS = PT. Sawit Sumbermas Sarana Tbk TSA = PT. Tanjung Sawit Abadi Plantation Estates Iskandar Airport Kumai Port Key city Trans-Borneo Highway

Kalimantan

Favou vourable Loc Location Br Brings Greater E Efficiency a and Mor More C Cos

  • st Comp
  • mpetitive P

Pos

  • sition

3

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SLIDE 18

18

23.4% 23.9% 22.5% 22.5% 22.2% 21.0% 20.8% SSMS DNS First LNS GAR Astra Agro Lestari SGRO 19.4 19.0 18.3 17.4 16.8 14.7 10.0 SSMS GAR Astra Agro Lestari DNS First LNS SGRO 4.5 4.3 4.2 3.9 3.8 3.4 2.1 SSMS DNS GAR Astra Agro Lestari First LNS SGRO Average

16.5

Average

22.3%

Average

3.7

SSMS - Cash Cost Units 1H 2018

Fertilizer and maintenance Rp bn 161 Labor Rp bn 183 Harvesting Rp bn 68 Overhead Rp bn 95 Total field cost Rp bn 507 FFB production K tons 763 Field cost / FFB Rp /kg 664 OER % 22.9% Field cost / CPO Rp /kg 2,895 Milling cost Rp bn 53 CPO production K tons 212 Milling cost / CPO Rp /kg 252 Total Cash Cost / CPO Rp /kg 3,147 FX Rate (June 30, 2018) Rp/USD 14,404

USD/mt 218

Source : The respective companies’ public filings for peer companies data

Plant P t Producti tivity ty Ca Cash sh Co Cost st B Brea eakdown for 1H 1H18

FY16 Peers Comparison – FFB Yield (MT/Ha)

Higher FFB yield, OER and CPO yield compared to average among peers

FY16 Peers Comparison – OER (%) FY16 Peers Comparison – CPO Yield (MT/Ha)

2 High Yielding a

ng and E Efficient nt P Plantation O

  • n Operations
  • ns Suppor
  • rting

ng Low Cost O Operations ns

GAR Agribusiness & Food London Sumatra GAR Agribusiness & Food Sampoerna Agro Sampoerna Agro London Sumatra GAR Agribusiness & Food London Sumatra Sampoerna Agro

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SLIDE 19

19

36.2 37.8 42.6 45.3 46.4 48.8 52.6 57.9 59.5 60.8 62.5 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

4 Strong C

  • ng CPO G

Globa bal O Outlook

  • k and Fundament

ntals

Strong ng demand nd d drivers f s for G Global C CPO c consum nsumption

Growing demand for food primarily in Asia especially China and India

Expansion of oleochemical requirements

Increased awareness of health benefits of palm oil compared to other seed oils

Increased use in biodiesel Significant room for further growth in key palm oil consuming countries Palm o

  • il is

is the ch cheapest a and h hig ighest y yie ielding e edib ible o

  • il

1 2 3 4 5 200 400 600 800 1,000

Soya Palm Rapeseed

56.0 54.1 19.2 21.9 20.3 11.8 67.1 64.4 43.1 24.3 26.5 17.5

US EU-28 Indonesia Pakistan China India 2006 2016

Considerable additional demand growth potential

Yield: Tonne/ha Edible Oil Consumption: Kg per Capita M tonnes of CPO

Source: Oilworld

Average: 55.1 Average: 65.8 Average: 27.9 Average: 18.3

Production Cost: US$/tonne

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SLIDE 20

20

Palm oil still trades at a discount to other edible oils. Moreover, palm oil prices have been relatively stable over the last few years.

Source: Bloomberg

Strong CPO Global Outlook and Fundamentals (Cont’d)

200 400 600 800 1,000 1,200 1,400 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18

Soy oil premium to CPO CPO Soy oil

US$ / MT

4

SSMS’ average cash cost per ton

  • f CPO produced for 9M 2017

US$741 US$653 US$231

slide-21
SLIDE 21
  • 4. Operat

ration ional al Analysis

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SLIDE 22

22

4 Indonesi

esia E Expec ected ed t to R Rem emain a Significant CP CPO P O Player er

M tonnes of CPO (Indonesian % share of total output)

Global Pr Production o

  • f CPO

PO, 2006 2006 to to 2016 ( 2016 (m m to tonnes)

(Indonesian % share of total export)

Global E Exports o

  • f CPO

PO, 2006 2006-2016 2016 ( (m tonn nnes)

Si Significant g growth i in Indonesia’s ma market s share i in world C CPO p production a and e exports Indone nesi sia is also so one o

  • f t

the l largest st c consu nsumers o

  • f p

palm o

  • il

Consumption CAGR (10 Year CAGR until 2016) India 11.6% Indonesia 9.5% Europe (EU-28) 5.0% China

  • 0.6%

Source: Oilworld

M tonnes of CPO M tonnes of CPO

43% 45% 44% 47% 48% 48% 50% 51% 52% 53% 54% 0% 10% 20% 30% 40% 50% 60% 10 20 30 40 50 60 70 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Indonesia Malaysia Rest of world Indonesia % share 42% 43% 43% 47% 45% 44% 47% 49% 52% 55% 53% 0% 10% 20% 30% 40% 50% 60% 0.0 10.0 20.0 30.0 40.0 50.0 60.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Indonesia Malaysia Rest of world Indonesia % share 7.1 8.0 8.6 7.1 9.2 7.6 8.5 7.9 9.3 9.2 6.2 6.3 6.1 5.7 5.1 6.0 7.0 7.1 7.3 7.0 2012 2013 2014 2015 2016 Indonesia India China Europe (EU-28)

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SLIDE 23

23

96 88 95 114 60 49.7% 50.3% 46.9% 47.5% 45.30%

50 100 150 200 250

2014 2015 2016 2017 1H18 EBITDA EBITDA margin 194 176 202 239 131 2014 2015 2016 2017 1H18

Nurs rsery ry

5 Strong O

  • ng Operating

ng Profile Leading t ng to Resilient nt F Financ ncials

  

Increased production as our plantations mature and enter into their prime production age Strategic location, logistical efficiencies and best practices in plantation management Application of best-in-class agronomy practices

  • Use of only high yield seeds
  • Culling of unhealthy seeds
  • High quality fertilizer complemented with
  • rganic fertilizer from byproducts of mills
  • Natural methods for planting and pest

control

  • Harvest at maximum oil content
  • Processed within 12 hours
  • Yield gap analysis to benchmark against

industry

Ha Harv rvesting Maintenan ance Yield A Analy lysi sis

296 321 290 343 212

2014 2015 2016 2017 1H18

Reven enue EBITDA an and M Mar argin gin

US USD m mm USD m mm / %

CPO P Prod

  • duction
  • n

MT ' MT '000 000

Exchange rate USD:IDR of 14,404 used.

slide-24
SLIDE 24

24 6,715 6,826 8,212 4,941 39.0% 40.2% 39.5% 38.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

2015 2016 2017 1H18 Production KOER 321,238 289,653 343,059 212,007 23.7% 23.4% 23.1% 22.9%

16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000

2015 2016 2017 1H18 Production OER

High Yielding P ng Plantation D

  • n Despite C

Challengi nging g Market C Conditions

  • ns

FFB FB

1,094,463 1,074,050 1,231,485 763,212 20.1 19.4 19.2 11.5

(60.0) (50.0) (40.0) (30.0) (20.0) (10.0)
  • 10.0
20.0 30.0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000

2015 2016 2017 1H18 Production Yield (MT/Ha)

MT

Pa Palm K Ker ernel Crude ude P Palm K Kernel Oil

60,861 54,005 62,240 41,235 4.5% 4.4% 4.2% 4.5%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

2015 2016 2017 1H18 Production KER

MT MT

Crude ude P Palm O Oil

MT

slide-25
SLIDE 25
  • 5. Financ

ncial ial Performance

slide-26
SLIDE 26

26

Modest Balance Sheet Leverage Diversified Funding Channels Significant Liquidity Dividend Policy Investment Policy Hedging Policies

Prude dent F Financi cial Policy cy Prudent Financial Management Strong Risk Management

  • Maintain debt to equity leverage around 1.0x
  • Maintain gross debt to EBITDA leverage of around 3.0x
  • Secure diversified funding sources from banks and both

domestic and international capital markets

  • Manage liquidity risk by maintaining cash and cash

equivalents sufficient to meet our commitments for normal

  • perations, regularly evaluating cash flow projections and

actual cash flows

  • Annual dividends to be distributed in an amount up to 30%
  • f net income for each year, normalized by excluding net

foreign exchange gains/losses, deferred tax revenues or expenses, and deducting all specified reserves

  • Investments are decided after careful review and the

assessment of a feasibility study

  • Business profile provides a natural hedge against USD/IDR

fluctuations

  • Do not practice hedging of CPO price
slide-27
SLIDE 27

27 Reven enue EBITDA an and M Mar argin gin EBIT an and M Mar argin gin Net et I Inco come e and Net et I Inco come M Margin

Strong

  • ng Financ

ncials a and Margins ns

96 88 95 114 59.51 49.7% 50.3% 46.9% 47.5% 45.30%

50 100 150 200 250

2014 2015 2016 2017 1H18 EBITDA EBITDA margin 82 74 77 88 51 42.4% 41.9% 38.2% 36.6% 38.5% 2014 2015 2016 2017 1H18 EBIT EBIT margin 49 42 44 58 22.5 25.4% 24.0% 21.7% 26.5% 22.7%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50 100 150 200 250

2014 2015 2016 2017 1H18 Net income Net income margin 194 176 202 239 131 2014 2015 2016 2017 1H18 USD m mm USD m mm / % USD m mm / % USD m mm / %

Exchange rate USD:IDR of 14,404 used.

slide-28
SLIDE 28

28 Total D Debt / / EBI BITDA (x (x) EBI BITDA / / Interest (x (x) Tota tal D Debt / t / Equity ty ( (x) Capi pita tal E Expe penditure

Stable Cr e Cred edit M Met etrics s and Red educing Ca Capi pital E Expen enditure

2.7x 2.4x 3.2x 4.0x

0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 4.5x

2015 2016 2017 1H18 5.8x 7.0x 4.2x 3.8x

0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x

2015 2016 2017 1H18 1.1x 0.9x 1.2x 1.2x

0.0x 0.2x 0.4x 0.6x 0.8x 1.0x 1.2x 1.4x

2015 2016 2017 1H18 27 26 29 13 2015 2016 2017 1H18 USD mm

Exchange rate USD:IDR of 14,404 used.

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SLIDE 29

6. . Land nd Ri Rights Infor Information

slide-30
SLIDE 30

30

Lan and Rig ights O Obtain aining S Seque uence

This is a license granted by the government to enable a company acquiring or relinquish land with area and location that are specified in the related license. The land acquisition must be completed within the validity period of the location permit. Location permit is valid for 3 years and can be extended for another year if the company already acquired at least 50% of the intended land. Land acquisition can be done by way of (depending on the type of the land), among others:

  • plant growth compensation to the local communities;
  • forest relinquishment or forest exchange to the Ministry of

Environment and Forestry; and

  • land purchase/ relinquish from the previous owner.

Apply for land measurement (cadastral process) to the land office followed by the issuance of cadastral map.

Land and A Acquis isit ition

2

Obtai ain L n Locat ation n Perm rmit

1

App pply f for L Land and M Measurement nt

3

Issu ssuance o

  • f

f the the C Cadastral Map ap by the L Land and O Offic ice

4

Land Asse d Assess ssment a and Recommen endation ion b by Panit itia ia B

7

Apply fo for HG HGU to to the the Land and O Offic ice

5

Issuan ance o

  • f the M

Minis inisterial ial Decree R Regar arding ing t the Approv

  • val o
  • f HGU

GU

8

Registr trati tion f for H HGU U Certi tificate te t to the R Releva vant t Land and O Offic ice

9

46,276 ha (HGU)

Land and O Offic ice t to Form/ Esta stablish Panit anitia ia B

6

36,583 ha (Location Permit) 3,919 ha (Relinquished Land) 8,992 ha (Cadastral)

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SLIDE 31

31

Thank You

Visit our website at www.ssms.co.id

Mailing Address: PT Sawit Sumbermas Sarana Tbk

Head Office Representative Office

  • Jl. H. Udan Said No.47

Equity Tower, Suite 43D Pangkalan Bun 74113

  • Jl. Jend Sudirman Kav.52-53

Kalimantan Tengah, Indonesia Jakarta 12190, Indonesia