Management UpdateApril 2020

World ClassPlantation Company”

“To Become A

1

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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,

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limitations set forth herein.

2

Business Overview02

FY19 Highlights01

Company Summary03

Appendix04

Contents

FY19 Operating Summary

Mills

Total milling capacity up by 120MT/hour to 540MT/hour by end of

2019

Production

• FY19 FFB production 5.9% lower Y-on-Y at 1,521,602MT

• FY19 CPO production 1.9% lower Y-on-Y at 435,940MT

4

Yield

• FFB average yield of 22.3MT/Ha in FY19 versus 24.4MT/Ha in FY18

• CPO yield at 5.5MT/Ha in FY19 versus 5.9MT/Ha in FY18

Sustainability

• On schedule to achieve full RSPO certification, with RSPO audits

completed at TSA, KSA and SMU and due at MPP and MKM

• First Biogas plant in operation (1.5MW) and one more under

construction

Utilization Rate and Production Comparison FY19 – FY18 – 9M19 – 1H19

5

FY18 (MT) CPO PK PKO FFB

Quarter 4 444,295 85,048 10,466 1,616,440

9M19 (MT) CPO PK PKO FFB

Quarter 3 127,148 24,750 5,714 437,878

1H19 (MT) CPO PK PKO FFB

1st Half 193,417 36,307 6,627 679,891

FY19 (MT) CPO PK PKO FFB

Quarter 4 435,940 82,680 20,355 1,521,602

Ultilization Rate

FY19 FY18 FY17 FY16

Mills 63% 74% 73% 66%

Sales Volume FY19

6

Quantity (MT)Price/MT

(million)

Total in MT

(billion)

Quantity

(MT)

Price/MT

(million)

Total in MT

(billion)

Quantity

(MT)Price/MT

Total in

Billon

IDR

Quantity

(MT)Price/MT

Total in

Billon

IDR

CPO 452,686 6.5 2,947 443,101 7.3 3,217 9,585 752- 271- 2% -10% -8%

PK 34,891 3.5 121 57,026 5.2 299 22,135- 1,785- 178- -39% -34% -60%

FFB 67,805 1.1 76 67,840 1.3 85 35- 126- 9- 0% -10% -10%

CPKO 16,567 8.1 134 10,441 10.5 110 6,126 2,389- 25 59% -23% 23%

Total 571,949 3,278 578,408 3,711 6,459- 433- -1% -12%

2019 2018 Change in amount Change percentage

Product

Summary P&L – FY19 versus FY18 comparative

7

In mio IDR FY19 FY18 Changes

Revenue 3,277,807 3,710,780 -11.7%

Cost of Goods Sold (2,268,335) (2,110,180) 7.5%

Gross Margin 1,009,472 1,600,601 -36.9%

Marketing Expense (82,650) (219,199) -62.3%

G&A Expense (522,938) (491,285) 6.4%

Gain (Loss) from Fair Value of BiologicalAssets

104,032 (92,561) -212.4%

Other Income (Expenses) (61,549) (179,638) -65.7%

Operating Margin 446,367 617,917 -27.8%

Profit Before CIT 154,593 340,869 -54.6%

Corporate Income Tax (142,511) (254,098) -43.9%

Profit (loss) Income 12,082 86,771 -86.1%

EBITDA 944,162 1,076,659 -12.3%

COGS Breakdown

8

In mio IDR FY19 FY18 Changes

Purchase of FFB 573,830 541,619 5.9%

Labor cost 406,958 403,801 0.8%

Fertilizer and maintanance 511,678 430,738 18.8%

Overhead cost 207,494 210,100 -1.2%

Amortization of mature plantation 153,885 144,458 6.5%

Harvesting cost 106,548 110,281 -3.4%

Depreciation of fixed assets 132,347 107,684 22.9%

Milling cost 102,032 142,567 -28.4%

Cost of production 2,194,771 2,091,247 5.0%

Add: CPO, PK and CPKO beginning of period

158,739 177,672 -10.7%

Less: CPO, PK and CPKO end of period (85,175) (158,739) -46.3%

Cost of Goods Sold 2,268,335 2,110,180 7.5%

Comparative Ratios and Cash Cost

9

Financial Ratio FY19 FY18

Current Ratio 2.5 5.3

Debt to Equity 1.9 1.8

EBITDA to Interest 1.9 2.4

Cash cost FY19 FY18

USD/Ton CPO $269 $238

High Yields and Efficiency with Low Cash Cost per Tonne

22.8% 23.0% 22.9% 22.2% 22.2% 21.7% 20.6%

SSMS DSN London Sumatra Golden Agri First Resources Sampoerna Astra Agro

Average

18.9

SSMS - Cash Cost Units FY19

Fertilizer and

maintenanceRp bn 512

Labor Rp bn 407

Harvesting Rp bn 107

Overhead Rp bn 207

Total field cost Rp bn 1,234

FFB production K tons 1,522

Field cost / FFB Rp /kg 810

OER % 23.1

Field cost / CPO Rp /kg 3,508.2

Milling cost Rp bn 102

CPO production K tons 436

Milling cost / CPO Rp /kg 234

Total Cash Cost / CPO Rp /kg 3,742

FX Rate (31 Dec., 2019) Rp/USD 13,902

USD/MT 269Source: The respective companies’ public filings for peer company data

Plant Productivity FY18 Cash Cost Breakdown for FY19

Peers Comparison – FFB Yield (MT/Ha)

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

Peers Comparison – OER (%)

Peers Comparison – CPO Yield (MT/Ha)

GAR Agribusiness

& Food

London

Sumatra

Sampoerna Agro

24.4 22.820.5 19.1 17.5

14.9 13.1

SSMS DSN Golden Agri Astra Agro First Resources London Sumatra Sampoerna

5.6 5.7 5.6

3.9 3.9 3.42.8

SSMS Golden Agri DSN Astra Agro First Resources London Sumatra Sampoerna

Average

22.2%

Sampoerna AgroLondon

Sumatra

GAR Agribusiness

& FoodLondon

Sumatra

Sampoerna Agro

GAR Agribusiness

& Food

Average

4.4

10

1,074,050 1,274,235 1,616,440 1,521,602

19.4 19.9 24.4 22.3

(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

FY16 FY17 FY18 FY19

Production Yield (MT/Ha)

6,826 8,212 10,466 20,355

40.2% 39.5% 38.0% 41.6%

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

FY16 FY17 FY18 FY19

Production KOER

289,653 343,059 444,295 435,940

23.4% 23.1%

23.0% 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

FY16 FY17 FY18 FY19

Production OER

Production Trends in FY19

FFB

MT

Palm Kernel Crude Palm Kernel Oil

54,005 62,240 85,048 82,680

4.4% 4.2% 4.4% 4.4%

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

FY16 FY17 FY18 FY19

Production KER

MTMT

Crude Palm Oil

MT

11

Revenue EBITDA and Margin

EBIT and Margin Net Income and Net Income Margin

FY19 Revenues and Margins

95 114

79 68

46.9% 48%

26%29%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

-

50

100

150

200

250

FY16 FY17 FY18 FY19

EBITDA EBITDA margin

7788

43

11

38.2% 36.6%

16.7%

4.7%

FY16 FY17 FY18 FY19

EBIT EBIT margin

4458

6 0.9

21.7%24.3%

2.3% 0.4%

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

FY16 FY17 FY18 FY19

Net income Net income margin

USD mm USD mm / %

USD mm / %USD mm / %

Data as at 31 Desember 2019. Exchange rate of USD:IDR of 13,901used. 12

202239 256

236

0

50

100

150

200

250

FY16 FY17 FY18 FY19Revenue

2. Business Overview

13

A High-Growth Indonesian Palm Oil Plantation Company …

5.5 MT/ha

CPO Yield per

Mature Ha

10.8 years

Average Plant

Maturity

23.1%

Oil Extraction

Rate

22.3 MT/ha

FFB Yield per

Mature Hectare

69,236 Ha

Planted Area

• Founded in 1995, SSMS is a fast growing Central

Kalimantan-based palm oil plantation company with young

maturity profiles (10.8 years) and strong yields

• SSMS has 93,660 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 23 oil palm estates, covering

69,236 hectares of planted area, which includes eight palm

oil mills and one kernel crushing plant

• SSMS’s 5,031 Ha of potential areas 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)

19.0%19.0% 99.0% 99.0%

99.0% 99.0% 99.0% 99.0%

PT. Citra

Borneo Indah

(CBI)

53.75%

PT. Putra

Borneo Agro

Lestari

10.22% 36.03%

COMPANY OVERVIEW SHAREHOLDING STRUCTURE

81.0%81.0%

14

HGU

48,652

Location

Permit

35,149

Others

9,859

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

High Yielding Plantations

(1)

Despite Young Maturity Profile of Plantations

… With Young Trees and Strong Yields

Planted Area,

69,236

Essential

Infrastructure

5,396

Conservation

Area, 13,846

Potential

Area, 5,031

• Substantial room for organic growth via unplanted reserves

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

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

• Using high-yielding 3rdgeneration seeds from major providers including Lonsum, Socfin, Damimasand TopasAsianAgri

Data as at 31 Desember 2019.

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).

15

51%

11%

38%

24.4%24.6%

23.9%

24.4%

23.8%23.5%

23.7%

23.4%23.1%

22.8%

21.5%

22.0%

22.5%

23.0%

23.5%

24.0%

24.5%

25.0%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2014 2015 2016 2017 2018CPO Production Nucleus (MT) CPO Production Third parties (MT)

Nucleus OER (%) Total OER (%)

Immature

(0-3

years)

2%

Young

Mature

(4-7

years)

20%

Prime (8-

20 years)

78%

Plantation Processing Plants High Quality Products

Supported with Group

livestock synergy

• Integration of cattle

supports plantation

operations;

• Reduction of weeding,

integrated with breeding

and fattening;

• Combined organic

fertilizer to improve

productivity and cost

efficiency.

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:

• Cooking Oil

• Specialty Fats

• Functional Products

• Biodiesel

• Palm Wax and Candles

• Oleochemicals

Total 69,236 Ha

planted area across

Central Kalimantan

• Generating a high Oil Extraction Rate at the CPO

milsl of 23.1% (CPO); 4.4% (Palm Kernel); and

41.6% (Crude PKO).

• Young and high-yielding plantations with

average maturity profile of 10.8 years

• One of the world’s highest yielding CPO

plantations

To support a range of

both domestic and

overseas customers

• An estimated 100% of

FY19 sales to local;

• Supported by a branch

office in Jakarta; and

• Operated by 6,762

permanent employees

(as of 31 Dec, 2019)

Integrated and Sustainable Business Operations

Processing Plant from FFB

to CPO with a total current

installed capacity of

540MT/hour, rising to

560MT in 2020

• Installed milling capacity utilization set to

improve in line with planted area growth

16

Our Commitment to Sustainability

Target 100% RSPO Certification by 2021

2018 2020

SSMS and MMS mills, which produce c.55% of total CPO in 2019 are RSPO certified since 2013

TSA, and SMU completed audit in 2019, and awaiting certification

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

100% RSPO Roadmap

Since 2016, SSMS partners with the Borneo Orangutan Survival Foundation (“BOSF”) to purchase and maintain Salat Island for the

conservation of orangutans; and

The cost of the orangutan conservation programs is part of the annual SSMS Operating Budget

2021

Initiation of

RSPO

Certification

Process for our

Smallholders &

Supply Chains

TSA

SMUKSA

Partnership with Borneo Orangutan Survival Foundation (BOSF)

17

MKM

MPP

2021

• In cooperation with the Borneo Orangutan Survival Foundation (BOSF), BKSDA and the Provincial Government of Central

Kalimantan, PT Sawit Sumbermas Sarana Tbk. established a conservation area for orangutans at Salat Nusa;

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

conservation habitats and suitability is around 2000 hectares;

• We work closely with other stakeholders to encourage responsible ecotourism for orangutan conservation; and

• Please find Salat Island information progress on the following link:

https://ssms.co.id/en/sustainability/detail/highlights-salat-island-2019-

Protecting Orangutan Habitats

18

• 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

• SSMS Gaining Corporate Performance Rating Program Awards In Environment

Management From the Indonesia Ministry of Environment and Foresty

No Deforestation, No Peat and No Exploitation Policy

19

Cultural, Social and

Community Program

Empowering

Education Program

Health

Empowerment

Distribution of aid

for earthquake

victims

Environmental

Conservation Program

Infrastructure

Program

Program for Community

Economic Empowerment

Affordable markets, basic food distribution,

development of places of worship

Scholarships for children, who have the

ability and strong desire to continue their

education

Increase

awareness about

the importance of

healthcare and

wellness

Provide medical assistance for free to the

public

Tree replanting

and treatment

One million tree plan to be developed,

plant maintenance

Dedicated to

projects that bring

the company and

community

together

Road and bridges developments, access

to improve the economy of the Village

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

Harmonious Relationships with All Stakeholders

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

20

3. Company Summary

21

103 174 336

2,796

5,001

6,954

2,550

6,741 5,988

7,037

8,431

5,438

2,677

1,041

6,853

2,128

4,057

810 110 18

20002001200220032004200520062007200820092010201120122013201420152016201720182019

Young Maturity Profile

Prime Mature (8 – 20 years)

73%

Young Mature (4 – 7

years)

20%

Immature (1 – 3

years)

7%

Total Planted Area by Planted Year (Ha)

Theoretical Yield by No. of Years (MT/Ha)

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.

Up to 33 MT/Ha

during steady state

14

18

22 25

28 29 30 31 32 32 33 32 31 28

26 24

0 0 0

9 11

16 18

20 21

26 28

30 33 32 33 34 34 34

32

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Theoretical Yield

SSMS yieldPick up in production yield

as trees move from young

mature to prime stagePick up in

production as

immature trees

move into young

mature stage

22

Favorable Location Enables Higher Efficiency and Cost Control

Strong Operating Profile

Nursery

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 seedlings.

• High quality fertilizer complemented

with organic fertilizer from byproducts

of mills;

• Natural methods for planting and pest

control.

• Harvest at maximum oil content;

• Process within 12 hours of harvesting.

• Yield gap analysis to benchmark

against industry.

Harvesting

Maintenance

Yield Analysis

Appendix

25

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 Acquisition2

Obtain

Location

Permit1

Apply for Land

Measurement3

Issuance of the

Cadastral Map

by the Land

Office

4

Land Assessment

and

Recommendation

by Panitia B

7

Apply for HGU

to the Land

Office5

Issuance of the

Ministerial

Decree of

Approval of

HGU

8

Registration for

HGU Certificate

to the Relevant

Land Office

9

48,652 ha (HGU)

Land Office to

Form/Establish

Panitia B6

35,149 ha (Location Permit) 220 ha (Relinquished Land) 9,639 ha (Cadastral)

26

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