1

Kencana Agri Limited

3Q 2011

Performance Review

2

Disclaimer

This document has not been independently verified and has been prepared for

informational purposes only. No representation or warranty express or imply is

made as to, and no reliance should be placed on, the fairness, accuracy,

completeness or correctness of the information or opinions contained herein.

It is not the intention to provide, and you may not rely on this document as

providing, a complete or comprehensive analysis of the company’s financial or

trading position or prospects. The information and opinions contained in these

materials are provided as at the date of this presentation and are subject to

change without notice.

None of Kencana Agri Limited or any of its affiliates, advisers or representatives

shall have any liability whatsoever (in negligence or otherwise) for any loss

whatsoever arising from any use of this document or its contents.

3

Total Production

2010 : 94,154 MT

9M2011 : 86,946 MT

No. of Palm Oil Mills : 3

Total Capacity : 165 MT/day

Biomass Power Plant

Supporting Business

Port and Bulking Terminal

Logistics

No of Plant : 2 (Bangka,

Belitung)

Total Capacity : 13.5 MW

Palm Kernel

Cake

CPO

CPKO

Fresh Fruit Bunches (FFB)

Total Land bank :189,665 ha

Nucleus :174,683 ha

Plasma : 14,982 ha

Total Planted Area : 51,280 ha

Nucleus : 39,735 ha

Plasma : 11,545 ha

Overview of Our Group’s Activities

Total capacity : 66,000 MT

No of Vessels : 4

Total Capacity : 8,300 MT

No. of Kernel Crushing Plant : 2

Total Capacity : 435

MT/day

Products Processing Plantation

Total Production

2010 : 16,513 MT

9M2011 : 9,862 MT

Total Production

2010 : 22,967 MT

9M2011 : 12,415 MT

4

Where We Are…

Oil palm estate

Oil palm estate with palm oil mill and kernel

crushing plant

Palm oil mill

Port and bulking terminal

Biomass power plant

* Joint venture with Louis Dreyfus Commodities in Balikpapan

5

Phase 1

Oil Palm cultivation started in 1996 in Bangka island, Sumatra (1,215 ha). This was followed by the 2nd planting in 1998 in South

Kalimantan.

Phase 2

Started in 2004 in south and east Kalimantan with rapid planting programme. Total planted hectarage increased by about 5 times

(from phase 1)

Phase 3

Started in 2011 in Sulawesi. Expect to double up the total planted ha by 2018.

* By 9M2011: Approximately 51,280 ha of oil palm planted

Development of Oil Palm Plantations

Phase 1 Phase 2

Planted Area : Nucleus + Plasma (Ha)

Year of Planting Plasma Nucleus

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Plasma

Nucleus

9M2011

6

Potential Double-Digit FFB Production Growth

AGE DISTRIBUTION OF OIL PALMS (NUCLEUS)

% o

f N

ucle

us

Pla

nte

d

AGE PROFILE OF OIL PALMS (Ha)

• RELATIVELY YOUNG PROFILE: 77% OF YOUNG AND IMMATURE PALMS

• POTENTIAL FOR STRONG DOUBLE-DIGIT PRODUCTION GROWTH OVER THE NEXT 5 YEARS

Weighted

Average Age

= 5.1 Years

Immature % Young

Mature %

Prime

Mature % Total

Nucleus 18,398 46% 12,951 33% 8,386 21% 39,735

Plasma 3,367 29% 5,076 44% 3,102 27% 11,546

Total 21,765 43% 18,027 35% 11,488 22% 51,280

0%

3%

6%

9%

12%

15%

18%

21%

15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

Age (Years)

Over 75%

Immature & Young

7

FFB Production Trend (Nucleus)

• 2000 – 2010 CAGR = 29.4%

• 2011 onward – expect strong double digit production

-

50,000

100,000

150,000

200,000

250,000

300,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1H2011

Nucleus (MT)

9M2011

8

Significant Land Bank for Future Planting

Total Land Bank 189,665 ha (including Plasma)

11%

10%

6%

73% Immature

Young Mature

Prime Mature

Unplanted Area

Planted Area:

27%

Land

Bank

(ha)

Planted

Area

(ha)

Planted

Area

(%)

Nucleus 174,683 39,735 22.7

Plasma 14,982 11,545 77.1

Total 189,665 51,280 27.0

9

Production Volume

3Q 2010 3Q 2011 Change 9M 2010 9M 2011 Change

Fresh Fruit Bunch (MT) 118,630 143,828 +21.2% 313,363 436,976 +39.4%

- Nucleus 65,554 78,229 +19.3% 169,852 238,990 +40.7%

- Plasma 18,588 22,110 +18.9% 52,824 88,368 +67.3%

- External 34,488 43,489 +26.1% 90,687 109,618 +20.9%

Crude Palm Oil (MT) 21,820 29,279 +34.2% 60,233 86,946 +44.3%

Crude Palm Kernel Oil (MT) 5,170 3,466 -33.0% 14,254 9,862 -30.8%

FFB Yield (MT/ha)

Group Average 3Q 2010 3Q 2011 Change 9M 2010 9M 2011 Change

- Nucleus 3.4 3.7 +8.8% 8.9 11.2 +25.8%

- Plasma 2.8 2.7 -3.6% 8.1 10.8 +33.3%

CPO Extraction Rates 19.5% 20.7% +6.2% 20.4% 20.5% +0.5%

CPKO Extraction Rates 40.0% 41.3% +3.3% 40.0% 41.5% +3.8%

10

Sales Volume and Revenue (CPO & CPKO)

3Q 2010

3Q 2011

% change

9M 2010

9M 2011

% change

Sales Volume (MT)

- CPO 28,400 68,930 +142.7% 75,023 195,142 +160.1%

- CPKO

5,562 7,895 +41.9% 15,811 12,561 -20.6%

Sales Revenue (USD’000)

- CPO 21,770 62,624 +187.7% 55,094 186,268 +238.1%

- CPKO 6,085 8,920 +46.6% 15,598 16,265 +4.3%

- OTHERS* 2,868 4,207 +46.7% 8,149 14,561 +78.7%

Average Sales Price (USD)

- CPO 770 910 +18.2% 730 950 +30.1%

- CPKO 1,100 1,130 +2.7% 990 1,295 +30.8%

*) Others include sales of Kernel, Cake, FFB, and income from logistic and power generation

11

Financial Performance

USD’000 3Q 2010 3Q 2011 % Change 9M 2010 9M 2011 % Change

Revenue 30,723 75,751 +146.6% 78,841 217,094 +175.4%

Gross profit 5,917 7,399 +25.1% 15,936 29,061 +82.4%

Operating profit 4,803 3,146 -34.5% 10,936 19,562 +78.9%

Profit before tax 3,125 700 -77.6% 7,236 13,054 +80.4%

Net profit for the

period 2,231 469 -79.0% 5,516 9,604 +74.1%

EBITDA 5,811 3,815 -34.3% 13,923 22,761 +63.5%

Gross margin (%) 19.3 9.8 -9.5pp 20.2 13.4 -6.8pp

Net Profit margin (%) 7.3 0.6 -6.7pp 7.0 4.4 -2.6pp

EBITDA margin (%) 18.9 5.0 -13.9pp 17.7 10.5 -7.2pp

12

Balance Sheet

USD’000 As at

31 Dec 2010

As at

30 Sept 2011 Change

Current Assets 86,180 91,952 +6.7%

Non-current Assets 301,363 350,907 +16.4%

Total Assets 387,543 442,859 +14.3%

Current Liabilities 39,260 72,088 +83.6%

Non-current Liabilities 138,165 149,556 +8.2%

Total Liabilities 177,425 221,644 +24.9%

Shareholders’ Equity 210,118 221,215 +5.3%

Net Debt/Equity Ratio (%) 49.2 63.9 +14.7pp

Net Debt/Total Assets (%) 26.7 31.9 +5.2pp

Debt/EBITDA (x) 5.6 7.0 +1.4

EBITDA/Interest Expense (x) 4.9 3.7 -1.2

13

Cash Flows

n/m = not meaningful

USD’000 9M 2010 9M 2011 Change

Cash at beginning of period 4,692 24,216 +416.1%

Net cash (used in)/from operating activities (4,624) 34,607 n/m

Net cash used in

investing activities (25,757) (55,687) -116.2%

Net cash from

financing activities 72,529 14,542 -80.0%

Net effect of

exchange rate changes in consolidating entities 413 490 +18.6%

Net increase/(decrease)

in cash 42,561 (6,048) n/m

Cash at end of period 47,253 18,168 -61.6%

14

Updates and Future Developments

Updates:

Planted area increased by approximately 4,500

ha in 9M 2011

Construction of 4th palm oil mill with 45MT/hour

capacity in East Kalimantan in progress

The J.V. project with Louis Dreyfus group started

operation in 2Q 2011

Future Developments:

Plans are on track to double the total planted

area by 2018

More vessels in 2011/2012 to handle greater

trading volume with completion of new port

15

Thank You