Management Presentation Performance Update, Strategy and Outlook. Jakarta, May

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Management Presentation Performance Update, Strategy and Outlook Jakarta, May 2016 Disclaimer These materials have been prepared by PT Sawit Sumbermas Sarana Tbk ( SSMS or The Company ) and have not been
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Management Presentation Performance Update, Strategy and Outlook Jakarta, May 2016 Disclaimer These materials have been prepared by PT Sawit Sumbermas Sarana Tbk ( SSMS or The Company ) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. Neither the Company nor any of its affiliates, advisers or representatives accepts any liability whatsoever for any loss arising from any information presented or contained in these materials. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. These materials contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as expects, plan, will, estimates, projects, intends, outlook or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation to buy or subscribe for any securities of the Company in any jurisdiction, nor should these materials or any part of them form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Vision Mission Commitments Vision Becoming A World-class Plantation Company Mission Building a professional plantation business Increasing added values for all stakeholders Implementing perfect principles of corporate governance Utilizing environmentally friendly and advance technology Developing its human resources and the local potentials in the spirit of partnership Commitments No burning No planting on HCV Zero waste policy Zero loose fruit policy HCV assessments Develop conserved area Strengthen R&D program 3 Solid Company Milestones 1995 PT Sawit Sumbermas Sarana Tbk established in Central Kalimantan 2009 Planted area surpassed 30,000Ha and commencement of Palm Oil Mill Natai Raya 2011 Commenced operation of 3rd Palm Oil Mill, Suayap and Kernel Crusher Plant, Suayap 2013 Commenced operation of 4th Palm Oil Mill, Selangkun 2013 IPO listed in Indonesia Stock Exchange 2000 The first planting of 103Ha palm oil plantation 2006 Started production of CPO with Palm Oil Mill Sulung 2010 Production of CPO surpassed 120,000 MT 2012 CPO production surpassed 200,000MT 2014 FFB processed surpassed 1,000,000MT 2015 Total planted area 69,841Ha through acquisition of TSA, SMU, MKM and MPP SSMS planting profile (Ha) 69,841 CBI Group and Parent Public 73.3% 26.7 % PT Sawit Sumbermas Sarana Tbk MMS 100% 100% KSA SBI 9% 100% 100% 100.0% 100.0% 9% MKM MPP TSA SMU CBU Note: CBI Citra Borneo Indah, MMS Mitra Mendawai Sejati, KSA Kalimantan Sawit Abadi, TSA - PT Tanjung Sawit Abadi, SMU - PT Sawit Multi Utama, MKM PT Menteng Kencan Mas, MPP PT Mirza Pratama Putra SSMS effectively owns 9% of CBU and 9% of SBI each through itself and subsidiaries KSA and MMS 4 Prime land in strategic location Central Kalimantan Province KDE SPE PDE NKE SBE NNE Kabupaten Lamandau BKE RGE SGE Sukamara Regency JAVA SEA Nanga Bulik Pangkalan Bun UPE POM MLE MLE POM SYE KCP SYE SLE SYE PLE KNE POM SLE RDE POM SGE NBE POM NBE Kumai Port Iskandar Airport Customer refinery Jetty, bulking facility & future refinery Kotawaringin Barat Regency Sumatera Kalimantan I N D O N E S I A Jawa Plantation estates Palm oil mills Kernel crushing plant Iskandar Airport KumaI Port Main City Pangkalan Bun Estates under management agreement Jetty, bulking facility, refinery Customers refinery Planted Unplanted Infrastructure Total Sulawesi Managed Area (Ha) 69,841 15,087 15,023 99,951 SSS 20, ,611 22,749 MMS 8, ,909 10,348 KSA 5, ,272 SMU 15,571 1, ,448 TSA 10,833 2,544 1,532 14,909 MKM 7,258 7,674 5,868 20,800 MPP 1,684 2,862 1,879 6,425 Total 99,951Ha of prime land under management with most area have mineral soil characteristic and flat terrain. 69,841Ha planted as of December % of the land under management already obtained Land Rights or Land Permits. Geographically concentrated in Central Kalimantan area. Strategically located along the Trans-Borneo Highway in proximity with customer s refineries, Kumai port and Iskandar airport. 15,087 Ha unplanted as base for organic growth. SSMS Managed Area Breakdown FY15 Land Rights 22% Under process 3% Land Permits 75% 5 Young and high-yielding plantations FFB productivity is back in the high-growth phase; post-acquisition average age is adjusted to 7 years old due to TSA,SMU,MKM and MPP younger profile Using the high-yielding 2nd generation seeds namely from major providers; Lonsum, Socfin, Damimas and Topas AsianAgri. Application of best practices in plantation management; RSPO and ISPO certified Field Operation FY14 FY15 FY15/14 3m15 3m16 3m15/16 Planted Area (Ha) 34,064 69, % 59,386 69,841 17,6% Immature 1,157 19, % 8,917 19, ,6% Young mature 9,129 20, % 19,752 20,082 1,7% Prime 23,778 30,717 29% 30,717 30,717 - SSMS Proforma Age Tree Profile FY15 Young Mature 29% Immature 27% 7 Average age Prime 44% Production Summary FY14 FY15 FY15/14 3m15 3m16 3m15/16 FFB Production (Mt) 808,307 1,094, % 246, , % Yield for the period (Mt/Ha) Average age (Years) Theoretical Yield by Planting Year (MT/Ha) High-growth Phase Steady Phase Decline Phase Immature Mills operations FY14 FY15 1Q15 1Q16 1Q15/1Q16 Capacity for the period (MT) 1,890,000 2,250, , ,500 Efficient mills operations with growth potential Capacity per hour Utilization rate 55% 60% 73% 45% FFB processed (MT) 1,038,983 1,355, , , % FFB production 808,307 1,094, , , % FFB purchases 230, ,745 72,946 42, % Production (MT) Crude Palm Oil 242, ,238 68,374 59, % Palm Kernel 44,859 60,861 13,272 12, % Crude Palm Kernel Oil 6,227 6,715 1,477 1, % Extraction Rate (%) Crude Palm Oil 23.5% 23.7% 23.4% 24% 2.6% Palm Kernel 4.3% 4.5% 4.6% 4.9% 6.5% Mills current utilization indicating sufficient capacity to support the expected growth in FFB production SSMS CPO Mill Capacity and utilization FY13 FY14 1H15 FY15 Crude Palm Kernel Oil 39.4% 38.9% 39.7% 40% 0.75% Operating 6 (six) CPO Mills; Sulung, Natai Raya, Suayap, Selangkun, Malata and Nanga Kiu with combined milling capacity 375MT FFB /hr Blended oil extraction rate at 24% CPO Mills utilization rate at 45% shows production growth potential Capability to optimize profit from sales of Palm Kernel or further processing to Crude Palm Kernel Oil (Mill Suayap) 7 High Yield, Efficient, and Competitive Cost Plantation FY15 Peers Comparison - FFB Yield (MT/Ha) Sector SSMS DSNG AALI First Res LSIP SGRO GAR JAWA GZCO FY15 Peers Comparison Oil Extraction Rate SSMS - Cash Cost Breakdown Units 1Q16 Fertilizer and maintenance Rp bn 44.2 Labor Rp bn 52.5 Harvesting Rp bn 2.7 Overhead Rp bn 20.9 Total field cost Rp bn Field cost/ffb Rp /kg Field cost/cpo Rp /kg 2,415.2 Sector 22.6% Milling cost Rp bn % 23.6% 21.6% 22.7% 22.9% 21.4% 22.6% 22.5% 22.9% Milling cost/cpo Rp /kg SSMS DSNG AALI First Res LSIP SGRO GAR JAWA GZCO FY15 Peers Comparison CPO Yield (MT/Ha) Sector SSMS DSNG AALI First Res LSIP SGRO GAR JAWA GZCO Total Cash Cost per CPO Rp /kg 2,869.4 FX rate Rp/USD 13,536 Cash cost / MT CPO USD Additional cost benefits: Operational synergies Lower transportation costs Optimal logistics and shared resources USD/mt A sound financial performance Comp. Income (Rp bn) FY15 3m15 3m16 3m15/16 Sales 2, % Cost of Goods Sold -1, % Gross income 1, % G&A expenses % Operating income % Finance income (costs) % Income for the year/period % Proforma adjustment Income after proforma adjust % Profitability (%) FY15 3m15 3m16 3m15/16 Gross margin 52.6% 54.4% 53.6% -1.5% Operating margin 37.3% 45.4% 46.8% 3.1% Net margin 23.6% 39.7% 30.2% -23.9% 1Q15 Income for the period booked Rp149.1bn or down by 45.5% this is caused mainly because lower level of production and decrease in average selling price around 18% Sales booked at Rp.494.5bn or down 28.2% since the sales volume is also down at 19.5% Gross Income, Operating Income and Net Income margins maintained at healthy level of 53.6%, 46.8% and 30.2%. 1Q16 Equity were Rp3,183.1bn or up 4.9% from FY15. 1Q16 Cash and equivalent Rp560.5bn reserved for future Capex and Working Capital. Financial Position (Rp bn) 3m15 3m16 3m15/16 Assets 6, , % Current assets 1, , % Non-current assets 5, , % SSMS Strong Capital Structure NetDebt/Ebitda 1.9 NetDebt/Equity Current liability 1, ,8-29.2% Non-current liability 2, , % Equity 2, , % FY12 FY13 FY14 FY15 3m16 9 Financial Summary Sales (Rp bn) Operating Income (Rp bn) 917 1,379 1,880 2,028 2,616 2,372 1, FY10 FY11 FY12 FY13 FY14 FY15 Annualized 3m16 FY10 FY11 FY12 FY13 FY14 FY15 Annualized 3m16 Net Income (Rp bn) Ebitda (Rp bn) ,068 1,253 1,174 1,104 FY10 FY11 FY12 FY13 FY14 FY15 Annualized 3m16 FY10 FY11 FY12 FY13 FY14 FY15 Annualized 3m16 10 Stock Performance Stock Price PT Sawit Sumbermas Sarana Tbk completed the IPO process on December 12,2013 with 15.7% ownership at offering price of Rp.670. Stock price grew consistantly and hit the closing price in 2015 at Rp By the end of 2015, free floating rate is now at 26.67% Our stock is very liquid and active, now also at LQ 45 list in Indonesia Stock Exchange. On avarage,daily trading volume in 2015 is about 54 million shares Daily Trading Volume Volume 11 Demand Drivers Growing demand for food primarily in Asia especially China and India Expansion of oleochemical business requirements Increased awareness of health benefits of palm oil Increased use in biodiesel Palm Oil is the cheapest edible oil Upside potential El Nino 2015, Australian Bureau of Metereology prediction Implementation of biodiesel from Indonesia and Malaysia Depreciation of Rupiah Weather issues that may cause supply disruptions Downside risk Continuing pressure on global economy Delays in adoption of bio diesel mandates Possible drag from low fossil oil prices Outlook for Palm Oil Continues to be Favorable Global CPO Consumption Rp mn/mt USD/MT FY10 FY11 FY12 FY13 FY14 1H15 Sept15 FY15 Feb16 Mar16 Apr16 Edible Oil Consumpt./Capita 2002 vs 2014 (kg) Dev. Avg US EU-27 Indonesia China India 12 SSMS Growth Strategy 1. Engage in sustainable palm oil production by RSPO and ISPO standard 2. Focus in core competence upstream Palm Oil Plantation business 3. Continuous efficiency improvements and application of best agronomy practices 4. Target additional planted area of 5,000-6,000Ha per annum 5. Strategic acquisition opportunities 13 Thank You Visit our website at Mailing Address: PT Sawit Sumbermas Sarana Tbk Head Office Jl. H. Udan Said No.47 Pangkalan Bun Kalimantan Tengah, Indonesia Representative Office Equity Tower, Suite 43D Jl. Jend Sudirman Kav Jakarta 12190, Indonesia Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. All projections are based on estimation, the realization thereof may deviate from the projection. PT Sawit Sumbermas SaranaTbk. accepts no liability whatsoever with respect to the use of this document or its contents. 14
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