Invest estor P Presen esentation
30 June 2018
Wor World Clas Class
Plant ntatio ion n Company ny”
“To B
- Becom
- me A
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Invest estor P Presen esentation 30 June 2018 DISCLAIMER NOT - - PowerPoint PPT Presentation
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ome A A Wor World Clas Class Plant ntatio ion n Company ny Invest estor P Presen esentation 30 June 2018 DISCLAIMER NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR IN
30 June 2018
Plant ntatio ion n Company ny”
“To B
A
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NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR IN ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE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
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
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
restrictions and limitations set forth herein.
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
4
Financ ncial highl hlight ghts
5
Table o e of Co Conten ents
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
FFB Yi Yiel eld p per er Mature H Hect ectare(4
(4)
Average ge Pl Plan ant M Mat aturity(2
(2)
CP CPO Yi Yiel eld p per er Mature H Hect ectare(4
(4)
Oil Extrac actio ion R Rate(3)
3)
Plant nted Are Area(2
(2)
with young maturity profiles (9 years) and strong yields
characteristics, flat terrain, as well as land permits / land rights, and are strategically located to key infrastructure
includes six palm oil mills and one kernel crushing plant
Citra Borneo Group (68.88%) Publi lic PT
ra Mendawai S Sejati (MMS MMS)
Kalimantan Sawit it Abadi di (KSA) A)
Mirza P Pratama P Putra (M (MPP PP) PT
ng Kenc ncana na M Mas (MKM) M) PT
it Multi U i Utama (S (SMU) PT
njung ng Sawit it A Abadi (TSA) A)
Utama (CBU) PT.
Sury urya Bo Born rneo I Industri (SBI) I) 19% 19% 99% 99% 99% 99% 99% 99% PT.
ra Bo Born rneo I Indah (C (CBI) 53.75% PT.
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
81% 81%
7
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
Selangkun
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
with mill capacity of 375MT/hour
by 4,000Ha in 2018
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
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
unplanted reserves
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% 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,0002014 2015 2016 2017 1H18
CPO Production (MT) OER (%)
65% 10% 25%
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
beef consumption
breeding and fattening
improve productivity and cost efficiency
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
4.5% (Palm Kernel); and 37.9% (Crude PKO).
years
To suppo port various c s customer ers, s, b both h dom
and ov
usage;
Jakarta; and
employees (as of 31 Dec., 2017)
Busi siness ss Ov Over erview ew (Cont nt’d ’d)
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
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
12
area for orangutans on the island of Nusa Salat;
Protect O Oran angut utan an H Hab abit itat ats
13
Sup upport t the Nat Natio ion wit with E Environmental ally Fr y Friendly y Actio ions…
14
Cult ltural, l, S Social a l and Com Community Pr Prog
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
Prog
Infra nfrastructure re Pr Prog
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
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
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
capita tal e expenditu tures.
1
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
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 =
Abadi MKM =
Mas MMS =
Sejati MPP =
SMU =
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
Pos
3
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
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
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
Globa bal O Outlook
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
is the ch cheapest a and h hig ighest y yie ielding e edib ible o
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$/tonne
20
Palm oil still trades at a discount to other edible oils. Moreover, palm oil prices have been relatively stable over the last few years.
Source: Bloomberg
Strong CPO Global Outlook and Fundamentals (Cont’d)
200 400 600 800 1,000 1,200 1,400 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18
Soy oil premium to CPO CPO Soy oil
US$ / MT
4
SSMS’ average cash cost per ton
US$741 US$653 US$231
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
PO, 2006 2006 to to 2016 ( 2016 (m m to tonnes)
(Indonesian % share of total export)
Global E Exports o
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
the l largest st c consu nsumers o
palm o
Consumption CAGR (10 Year CAGR until 2016) India 11.6% Indonesia 9.5% Europe (EU-28) 5.0% China
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)
23
96 88 95 114 60 49.7% 50.3% 46.9% 47.5% 45.30%
50 100 150 200 2502014 2015 2016 2017 1H18 EBITDA EBITDA margin 194 176 202 239 131 2014 2015 2016 2017 1H18
Nurs rsery ry
5 Strong O
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
control
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
MT ' MT '000 000
Exchange rate USD:IDR of 14,404 used.
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 10,0002015 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% 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,0002015 2016 2017 1H18 Production OER
High Yielding P ng Plantation D
Challengi nging g Market C Conditions
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)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 90,0002015 2016 2017 1H18 Production KER
MT MT
Crude ude P Palm O Oil
MT
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
domestic and international capital markets
equivalents sufficient to meet our commitments for normal
actual cash flows
foreign exchange gains/losses, deferred tax revenues or expenses, and deducting all specified reserves
assessment of a feasibility study
fluctuations
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
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 2502014 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 2502014 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.
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 4.5x2015 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 8.0x2015 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 1.4x2015 2016 2017 1H18 27 26 29 13 2015 2016 2017 1H18 USD mm
Exchange rate USD:IDR of 14,404 used.
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:
Environment and Forestry; and
Apply for land measurement (cadastral process) to the land office followed by the issuance of cadastral map.
Land and A Acquis isit ition
Obtai ain L n Locat ation n Perm rmit
App pply f for L Land and M Measurement nt
Issu ssuance o
f the the C Cadastral Map ap by the L Land and O Offic ice
Land Asse d Assess ssment a and Recommen endation ion b by Panit itia ia B
Apply fo for HG HGU to to the the Land and O Offic ice
Issuan ance o
Minis inisterial ial Decree R Regar arding ing t the Approv
GU
Registr trati tion f for H HGU U Certi tificate te t to the R Releva vant t Land and O Offic ice
46,276 ha (HGU)
Land and O Offic ice t to Form/ Esta stablish Panit anitia ia B
36,583 ha (Location Permit) 3,919 ha (Relinquished Land) 8,992 ha (Cadastral)
31
Visit our website at www.ssms.co.id
Mailing Address: PT Sawit Sumbermas Sarana Tbk
Head Office Representative Office
Equity Tower, Suite 43D Pangkalan Bun 74113
Kalimantan Tengah, Indonesia Jakarta 12190, Indonesia