Investor Update - PT Sawit Sumbermas Sarana Tbk. · Citra Borneo Group (68.88%) Public PT. Mitra ... Surya Borneo Industri (SBI) ... PT. Citra Borneo Indah (CBI) 58.48% PT. Putra

Investor Update January 2018

World-class Plantation Company”

“To Become A

2

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3

Key Credit Highlights 03

Introduction 01

Business Overview 02

Appendix 06

Operational Analysis 04

Financial Analysis 05

Table of Contents

01. Introduction

5

Sawit Sumbermas Sarana – Fast Growing Palm Oil Plantation Company in Indonesia

19.4 MT/ha FFB Yield per Mature

Hectare(4)

8.3 years Average Plant

Maturity(2)

4.5 MT/ha CPO Yield per Mature

Hectare(4)

23.1% Oil Extraction Rate(3)

70,984 Ha Planted Area(2)

• Founded in 1995, SSMS is a fast growing Central Kalimantan-

based palm oil plantation company with young maturity profiles

(8.0 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 70,984

hectares of planted area, which includes six palm oil mills and

one kernel crushing plant

• SSMS’s 16,040 Ha of unplanted area serves as base for

organic growth

Citra Borneo Group (68.88%)

Public

PT. Mitra

Mendawai Sejati

(MMS)

PT. Kalimantan

Sawit Abadi

(KSA)

PT. Mirza

Pratama Putra

(MPP)

PT. Menteng

Kencana Mas

(MKM)

PT. Sawit Multi

Utama (SMU)

PT. Tanjung

Sawit Abadi

(TSA)

PT. Citra Borneo

Utama (CBU)

PT. Surya

Borneo Industri

(SBI)

19% 19% 99% 99%

99% 99% 99% 99%

PT. Citra

Borneo Indah

(CBI)

58.48%

PT. Putra

Borneo Agro

Lestari

8.13%

Jemmy

Adriyanor

2.27% 31.12%

COMPANY OVERVIEW SHAREHOLDING STRUCTURE1

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

period of 9M 2017. 4. For the period of FY2016.

81% 81%

6

- 0 0 1 3

8

15 18

25 31

36 41

46 50 51

59

66 68 71

1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9M '17

Key Company Milestones

Total Planted Area (‘000 Hectares)

1995 PT Sawit Sumbermas Sarana was incorporated in Central Kalimantan

2000 First 103Ha palm oil plantation planted

2006 First production of CPO at Sulung Palm Oil Mill

2009 Planted area surpasses 30,000Ha; Natai Raya Palm Oil Mill commissioned

2010 Annual CPO production surpasses 100,000MT

2011 Third Palm Oil and Kernel Crusher Plant commissioned at Suayap

2012 Annual CPO production surpasses 200,000MT

2013 •Fourth Palm Oil Mill commissioned at Selangkun

•Listing on the Indonesia Stock Exchange with 1.5 billion new shares issued

2015 Total planted area of 66,201Ha post the acquisition of TSA, SMU, MKM and MPP

2014 Annual FFB processing surpasses 1,000,000MT

2016 Total planted area of 68,307Ha

2017 •Total planted area of 70,984Ha with mill capacity of 375MT/hour

•Targeting to expand plantation by 5,000Ha in 2018

02. Business Overview

8

HGU 46,276

Location Permit 36,583

Others 12,911

Sizable Landbank with Potential Upside from Unplanted Area Land Rights Secured for Large Portion of Landbank

High Yielding Plantations…

(1)

…Despite Young Profile of Plantations

Business Overview

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 70,984

Essential Infrastructure

2,945

Conservation Area 5,804

Other Unplanted

Area 16,040

• Substantial room for organic growth via unplanted reserves

• Most of the landbank have already obtained location permits and land rights

• High and consistent CPO production and oil extraction rates (“OER”)

• Using high-yielding 2nd generation seeds from major providers including Lonsum, Socfin, Damimas and TopasAsianAgri

Data as at 30 September 2017.

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

289,653 262,356

23.5% 23.7% 23.4% 23.1%

16.0%

17.0%

18.0%

19.0%

20.0%

21.0%

22.0%

23.0%

24.0%

25.0%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2014 2015 2016 9M 2017

CPO Production (MT) OER (%)

65%

10%

25%

9

Plantation Processing Plants High Quality Products

Processing Plant from

FFB to CPO with a total

installed capacity of

375MT/hour

Supported with group

livestock synergy

• Integration of cattle

support operations 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 acquisition and planted area

growth

Total 70,984 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 23.1% (CPO); 4.1% (Palm Kernel); and

39.5% (Crude PKO).

• Young and high-yielding plantations with average

maturity profile of 8.3 years

• One of the highest yielding CPO plantations in

Indonesia

To support various

customers, both domestic

and overseas

• 70.0% of sales for

domestic usage;

• Remaining 30.0%

entitled for export;

• Supported by a branch

office in Jakarta; and

• Operated by 6,066

permanent employees

(as of 30 Sep 2017)

Business Overview (Cont’d)

10

Our Commitment to Sustainability

Target 100% RSPO Certification by 2020 Partnership with The Forest Trust (“TFT”)

2018 2019

MKM

MPP

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

1

3

4

Identified Strengths – TFT produced a report that

identified the following strengths:

Progress in implementing the High Conservation Value

Continuous development of internal training programs

General understanding of our staff and plasma farmers

of our policies, especially in the area of legal compliance

Forest Conservation Fund

We will invest up to US$10 million in forest conservation in

Indonesia, to be initially managed by TFT as a Forest

Conservation Fund

The fund will have potential for future integration into an

independent fund

The funds will be used by local communities and supplier

companies to secure and protect forests at risk of

conversion to oil palm or other commodities

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 Orangutan Conservation

Close Engagement with TFT The Forest Trust (“TFT”) is a renowned group of social

and environmental experts in commodity supply chains 2020

Initiation of

RSPO

Certification

Process for our

Smallholders &

Supply Chains

Granting of Membership with TFT

SSMS has given full weight and proper regard to the

recommendation in the TFT report have already taken

important measures to address the weaknesses identified

by TFT

As a result, TFT has accepted SSMS as their newest palm

oil grower member

Visit and Scoping Exercise

TFT visited our plantations in Pangkalan Bun and undertook

a “scoping exercise”

2

TSA

SMU

KSA

11

• 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;

• Contribution to the PDB of Central Kalimantan; and

• Partnership with the BOSF

Support the Nation with Environmentally Friendly Actions…

12

Cultural, Social and

Community Program

Empowering

Education Program

Health

Empowerment

Accommodate

residents with

food and

commodity stocks,

and treatment

plans

Environmental

Conservation Program

Infrastructure

Program

Program for Economic

Empowerment Community

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

Consistently Support Harmonious Relationships with All Stakeholders

Corporate Governance “We do care”: Care for the Company, People, Environment and for the Country,

Indonesia

03. Key Credit Highlights

14

Young Maturity Profile Providing Visibility for Future

Production Growth 1

High Yielding and Efficient Plantation Operations Supporting

Low Cost Operations 2

Favourable Location Enables Higher Efficiency and Stronger

Cost Competitive Position 3

Strong CPO Fundamentals and Outlook 4

Strong Operating Profile leading to Resilient Financial Profile 5

Summary Credit Highlight

Well Experienced Management Team with Proven Track

Record 6

15

Up to 33 MT/Ha during

steady state

Young Maturity Profile Providing Visibility for Future Production 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 Mature (8 – 20 years)

65%

Young Mature (4 – 7 years)

25% Immature (1 – 3 years)

10%

Total Planted Area by Planted Year (Ha)

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

728

200020012002200320042005200620072008200920102011201220132014201520169M 2017

Theoretical Yield by No. of Years (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 age profile will support a continued increased in production of FFB over the next several years with minimal increases in

production costs or capital expenditures.

1

16

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 9M Sep 2017

Fertilizer and maintenance Rp bn 253

Labor Rp bn 199

Harvesting Rp bn 43

Overhead Rp bn 128

Total field cost Rp bn 622

FFB production K tons 938

Field cost / FFB Rp /kg 664

OER % 23.1%

Field cost / CPO Rp /kg 2,874

Milling cost Rp bn 63

CPO production K tons 262

Milling cost / CPO Rp /kg 241

Total Cash Cost / CPO Rp /kg 3,115

FX Rate (September 30, 2017) Rp/USD 13,492

USD/mt 231

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

Plant Productivity Cash Cost Breakdown for 9M 2017

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 and Efficient Plantation Operations Supporting Low Cost Operations

GAR Agribusiness & Food

London Sumatra


Sampoerna Agro

Sampoerna Agro London Sumatra


London Sumatra Sampoerna Agro

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

Transportation and infrastructure

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 benefits from operational

synergies

Lower transportation costs and optimal

logistics

Higher quality of FFB and CPO products

due to efficient transportation (lower FFA

%)

Central Kalimantan’s climate is ideal for

CPO 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

Favourable Location Enables Higher Efficiency and Stronger Cost Competitive Position 3

18

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 CPO Global Outlook and Fundamentals

Strong demand drivers for Global CPO consumption

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 oil is the cheapest and highest yielding edible oil

0

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

19

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

32 60 121

210 10 17

63 165 53

0 159 227

238 221 0

234 86 20

Source: Bloomberg

Strong CPO Global Outlook and Fundamentals (Cont’d)

0

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 of CPO produced for 9M 2017

US$741

US$653

US$231

20

4 Indonesia Expected to Remain a Significant CPO Player

M tonnes of CPO

(Indonesia

n %

share

of to

tal o

utp

ut)

Global Production of CPO, 2006 to 2016 (m tonnes)

(Indonesia

n %

share

of to

tal e

xport)

Global Exports of CPO, 2006-2016 (m tonnes)

Significant growth in Indonesia’s market share in world CPO production and exports

Indonesia is also one of the largest consumers of palm oil

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%

0

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)

21

96 88 95 127

49.7% 50.3% 46.9% 51.1%

0

50

100

150

200

250

2014 2015 2016 LTM Sep '17

EBITDA EBITDA margin

194 176

202 249

2014 2015 2016 LTM Sep '17

Nursery

5 Strong Operating Profile Leading to Resilient Financials

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 organic

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

Harvesting

Maintenance

Yield Analysis

296 321

290 262

2014 2015 2016 9M 2017

Revenue

EBITDA and Margin

USD mm

USD mm / %

CPO Production

MT '000

Exchange rate USD:IDR of 13,492 used. LTM financial metrics have been calculated by adding the relevant entity’s consolidated financials for the nine months

ended 30 September 2017 to the relevant entity’s consolidated financials for the year ended 31 December 2016 and subtracting the relevant entity’s

consolidated financials for the nine months ended 30 September 2016.

Slight decrease due to

adverse weather conditions

22

Well Experienced Management Team with Proven Track Record

Board of Commissioners Board of Directors

Marzuki Usman

Independent Commissioner

Rimbun Situmorang

Commissioner

• Since August 2016

• 16 Years experience in oil palm industry

Ramzi Sastra

Director



Nicholas Justin Whittle

Unaffiliated Director and CFO

Bungaran Saragih

President Commissioner



Vallauthan Subraminam

President Director


• Over 40 years experience in oil palm industry

Experienced management team with approximately 33 years of experience in palm oil on average and over 164 years of

combined industry experience.

• Since December 2016

• More than 25 years experience in

finance industry.



6

04. Operational Analysis

24

6,227 6,715 6,826 6,758

39.4% 39.0% 40.2% 39.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2014 2015 2016 9M 2017

Production KOER

296,329 321,238

289,653 262,356

23.5% 23.7% 23.4% 23.1%

16.0%

17.0%

18.0%

19.0%

20.0%

21.0%

22.0%

23.0%

24.0%

25.0%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2014 2015 2016 9M 2017

Production OER

High Yielding Plantation Despite Unfavourable Conditions In 2016

FFB

1,019,156 1,094,463 1,074,050 938,025

21.0 20.1 19.4

(60.0)

(50.0)

(40.0)

(30.0)

(20.0)

(10.0)

-

10.0

20.0

30.0

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2014 2015 2016 9M 2017

Production Yield (MT/Ha)

MT

Palm Kernel Crude Palm Kernel Oil

53,533 60,861

54,005 46,707

4.3% 4.5% 4.4% 4.1%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2014 2015 2016 9M 2017

Production KER

MT MT

Crude Palm Oil

MT

14.6

05. Financial Performance

26

Modest

Balance

Sheet

Leverage

Diversified

Funding

Channels

Significant

Liquidity

Dividend

Policy

Investment

Policy

Hedging

Policies

Prudent Financial Policy

Prudent Financial Management Strong Risk Management

• Maintain debt to equity leverage of less

than 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

operations, regularly evaluating cash

flow projections and actual cash flows

• Annual dividends to be distributed in an

amount up to 30% of 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

27

Revenue EBITDA and Margin

EBIT and Margin Net Income and Net Income Margin

Strong Financials and Margins

96 88 95

127

49.7% 50.3% 46.9%

51.1%

0

50

100

150

200

250

2014 2015 2016 LTM Sep '17

EBITDA EBITDA margin

82 74 77

108

42.4% 41.9% 38.2%

43.5%

2014 2015 2016 LTM Sep '17

EBIT EBIT margin

49 42 44 66

25.4% 24.0% 21.7%

26.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

0

50

100

150

200

250

2014 2015 2016 LTM Sep '17

Net income Net income margin

194 176

202

249

2014 2015 2016 LTM Sep '17

USD mm USD mm / %

USD mm / % USD mm / %




28

Total Debt / EBITDA (x) EBITDA / Interest (x)

Total Debt / Equity (x) Capital Expenditure

Stable Credit Metrics and Reducing Capital Expenditure

1.4x

2.7x 2.4x

2.8x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

2014 2015 2016 LTM Sep '17

6.4x 5.8x

7.0x

6.2x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

2014 2015 2016 LTM Sep '17

0.7x

1.1x 0.9x

1.2x

0.0x

0.2x

0.4x

0.6x

0.8x

1.0x

1.2x

1.4x

2014 2015 2016 LTM Sep '17

43

27 26

15

2014 2015 2016 9M 2017

USD mm




29

26

66

139

121

Less than 1 year 1 - 2 years 2 - 5 years More than 5 years

Issuer of

Facility Type Maturity Currency Principal

Interest

Rate

SSMS BNI SSMS

(IDR) 2024 IDR IDR1,025bn 9.75

SSMS BNI SSMS

(IDR) 2025 IDR IDR265bn 9.75

SSMS BNI SSMS

(USD) 2025 USD USD65mn 5.5

KSA BNI KSA (IDR) 2024 IDR IDR330bn 9.75

KSA BNI KSA (USD) 2024 USD USD16.5mn 5.5

SMU BNI SMU (IDR) 2025 IDR IDR540bn 9.75

SMU BNI SMU

(USD) 2025 USD USD27.1mn 5.5

TSA BNI TSA (IDR) 2025 IDR IDR465bn 9.75

TSA BNI TSA (USD) 2025 USD USD23.3mn 5.5

MMS Exim bank

MMS 2020 USD USD55.0mn 6.1

Total IDR 5,142bn /

US$381.1mn

Well Managed Debt Maturity Profile

Overview of Debt Terms (as of 30 September 2017) Debt Maturity Profile (as of 30 September 2017)

USD mm

Exchange rate USD:IDR of 13,492 used.

06. Appendix

Other Company Information

32

CBI Group Business

Subsidiary CBI Group’s

ownership

Business Description

PT Borneo Industri Nusantara (BIN) 95% Iron and Steel

PT Citra Borneo Chemical (CBC) 75% Oleochemical

PT Borneo Sawit Gemilang (BSG) 96% Landbank

PT Borneo Industri Terpadu (BIT) 90% Iron and Steel

PT Pelayaran Lingga Marintama (PLM) 99% Cargo shipping

PT Amprah Mitra Jaya (AMJ) 99% Timber

PT Central Kalimantan Abadi (CKA) 99.2% Timber

PT Erythrina Nugraha Megah (ENM) 80% Timber

PT Intrado Jaya Intiga (IJI) 99% Timber

PT Mendawai Putra (MP) 99% Trading

PT Natai Sawit Perkasa (NSP) 99% Landbank

PT Surya Borneo Energi (SBE) 90% Electrical

PT Surya Borneo Industri (SBI) 81% Industrial Park

PT Citra Borneo Utama (CBU) 81% Oleochemical

PT Pelayaran Senggora (PS) 97.14%(1) Cargo Shipping

PT Pelayaran Ampara (PA) 97.14%(1) Cargo Shipping

PT Pelayaran Mitra Globalindo (PMG) 85.17%(1) Cargo Shipping

Note: 1. Represents ownership by Pelayaran Lingga Marintama, in which CBI owns 99%.

33

Management Organization

General Meeting of

Shareholders (GMS)

President Director

Board of Commissioners

Audit Committee Nomination &

Remuneration Committee

Internal Audit

Finance Director Plantation Operational

Director Commercial Director

Plantation Advisor

Research & Development

License

Sustainability

Representative Office

Legal

Corporate Secretary

Corporate Legal

Finance Controller

Corporate Finance

Upstream Engineering

Plantation Administration

Traksi

Regional Plantation

Sales and Marketing

Procurement

Logistics

FFB Purchasing

Demand Planner & Problem

Solver

Chief of HR & General

Affairs

HR & General Affairs

Training and Development

Corporate Social

Responsibility

Medical

HR & General Affairs RO.

Jakarta

Risk Management

34

Well-Experienced and Professional Management

Bungaran Saragih | President

Commissioner • Since August 2013


• Currently Commissioner of PT Rea Kaltim

Plantations, Advisor of PT Japfa Comfeed

Indonesia Tbk., Chairman of Board of Trustees

Borneo Orangutan Survival Foundation and Trustee

of Roundtable on Sustainable Palm Oil

• Previously Chairman of Board of Governors

International Fund for Agricultural Development,

Minister of Agriculture of Indonesia

Board of Commissioners

Marzuki Usman | Independent

Commissioner • Since August 2013


• Previously Minister of Forestry of Indonesia,

President Commissioner of PT PP London

Sumatera Tbk.

Rimbun Situmorang | Commissioner • Since August 2016


• Also acts as President Commissioner of PT

Kalimantan Sawit Abadi

• Previously served as Director in Citra Borneo

Group

Vallauthan Subraminam | President

Director • Since August 2016 as President Director, since

2007 in group

• Over 40 years experience in oil palm industry

• Previously regional head in group 2007 – 2012,

Senior Manager of IJM Plantations Berhad,

Executive Director PT Domba Mas Group,

Plantation Manager Asian Agri Group, Kemayan Oil

Palm Berhad

• Education: Institute of Supervisory Management,

United Kingdom

Nicholas Justin Whittle | Unaffiliated

Director and CFO • Since December 2016

• More than 25 years experience in finance

industry

• Previous positions include CFO of Hot-Hed

International S.A., and Technical Advisor to PT

Trimegah Securities Tbk.

• Education: Cambridge (Bachelor and Master);

Columbia Business School (MBA)

Ramzi Sastra | Director • Since August 2013, served as Deputy

Commercial Director


• Previously Commercial Manager PT Bakrie

Sumatera Plantation and Commercial Manager PT

Flora Sawita Chemindo

• Education: University of North Sumatra (Bachelor);

Jakarta Institute of Management Studies (Master)

Board of Directors

35

Achievement and Certification

RSPO ISPO

ISO 9001, ISO 14001 and OHSAS 18001 PROPER blue

• Received RSPO certification for Sulung Mill (SSMS), Selangkun

Mill (SSMS) and Suayap Mill (MMS) • Received ISPO certification for Kenambui, Sulung, Rangda,

Kondang, Pulau, Selangkun, and Rungun Estates

• Awarded “Blue” PROPER certification by the Ministry of the

Environment and Forestry for 2015-2016

• The Citra Borneo Indah Group (including CBI and SSMS. and its

subsidiaries) is certified ISO 14001: 2004, OHSAS 18001: 2007

and ISO 9001:2008

36

Land Rights Obtaining Sequence

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 Acquisition 2

Obtain Location Permit

1

Apply for Land Measurement 3

Issuance of the Cadastral Map

by the Land Office

4

Land Assessment and Recommendation by Panitia B

7

Apply for HGU to the Land

Office 5

Issuance of the Ministerial

Decree Regarding the

Approval of HGU

8

Registration for HGU Certificate to the Relevant

Land Office

9

46,276 ha (HGU)

Land Office to Form/ Establish

Panitia B 6

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

37

• In order to protect the habitat of orangutans, PT Sawit Sumbermas Sarana Tbk, in cooperation with the Borneo

Orangutan Survival Foundation (BOSF), BKSDA and Government of Central Kalimantan, established conservation of

orangutans on the island of Nusa Salat;

• The region will encourage ecotourism for orangutan conservation; and

• Pulau Badak Besar dan Badak Kecil were selected due to their location around the island of Nusa Salat and suitability

for orangutan conservation habitats

Support the Protection of Orangutans’ Habitat

38

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

Documents

Investor Update - PT Sawit Sumbermas Sarana Tbk. · Citra Borneo Group (68.88%) Public PT. Mitra ... Surya Borneo Industri (SBI) ... PT. Citra Borneo Indah (CBI) 58.48% PT. Putra