Investor Update January 2018 DISCLAIMER

“To Become A World-class Plantation Company”

NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR IN ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE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 their respective subsidiaries (together, the “Group”) prepared by SSMS and CBI. 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 any member of the Group 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 any member of the Group or any of their respective advisors or representatives. 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 members of the Group 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 on circumstances that may or may not occur in the future. Any investment in securities issued by any member of the Group will also involve certain risks. There may be additional material risks that are currently not considered to be material or of which the members of the Group and their advisors or representatives are unaware. Against the background of these uncertainties, readers should not rely on these forward-looking statements. 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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, Indonesia 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”). No securities may 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 any member of the Group in the United States. This presentation is not an offer of securities for sale in Indonesia and does not constitute a public offering in Indonesia under Law Number 8 of 1995 regarding Capital Markets and its implementing regulations. 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 other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of U.S. or other national 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 of the date of this presentation and is subject to change without notice. By accepting delivery of this presentation, the recipient agrees to accept and be bound by the statements, restrictions and limitations set forth herein. 2 Table of Contents

01 Introduction

02 Business Overview

03 Key Credit Highlights

04 Operational Analysis

05 Financial Analysis

06 Appendix

3 01. Introduction Sawit Sumbermas Sarana – Fast Growing Palm Oil Plantation Company in Indonesia

COMPANY OVERVIEW SHAREHOLDING STRUCTURE1

• Founded in 1995, SSMS is a fast growing Central Kalimantan- Citra Borneo Group (68.88%) based palm oil plantation company with young maturity profiles 58.48% 8.13% 2.27% 31.12% (8.0 years) and strong yields PT. Citra PT. Putra Jemmy Borneo Indah Borneo Agro Public Adriyanor • SSMS has 95,770 Ha of prime land under management, with (CBI) Lestari most areas having mineral soil characteristics, flat terrain, as well as land permits / land rights, and are strategically located to key infrastructure 81% 81% • SSMS owns and operates 19 oil palm estates, covering 70,984 hectares of planted area, which includes six palm oil mills and 19% 19% 99% 99% PT. Surya PT. Mitra PT. Kalimantan one kernel crushing plant PT. Citra Borneo Borneo Industri Mendawai Sejati Sawit Abadi Utama (CBU) (SBI) (MMS) (KSA) • SSMS’s 16,040 Ha of unplanted area serves as base for organic growth 99% 99% 99% 99% PT. Mirza PT. Menteng PT. Tanjung PT. Sawit Multi Pratama Putra Kencana Mas Sawit Abadi Utama (SMU) (MPP) (MKM) (TSA)

70,984 Ha 23.1% 4.5 MT/ha 19.4 MT/ha 8.3 years CPO Yield per Mature FFB Yield per Mature Average Plant Planted Area(2) Oil Extraction Rate(3) Hectare(4) Hectare(4) Maturity(2)

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. 5 Key Company Milestones

2017 1995 2010 2012 •Total planted area of 2014 2016 PT Sawit Sumbermas Sarana Annual CPO Annual CPO 70,984Ha with mill Annual FFB processing Total planted was incorporated in Central production surpasses production surpasses capacity of surpasses 1,000,000MT area of 68,307Ha Kalimantan 100,000MT 200,000MT 375MT/hour •Targeting to expand plantation by 5,000Ha in 2018

2013 2011 2015 2009 •Fourth Palm Oil Mill Third Palm Oil and Total planted area of Planted area surpasses commissioned at Selangkun Kernel Crusher Plant 66,201Ha post the 30,000Ha; Natai Raya •Listing on the Indonesia commissioned at acquisition of TSA, SMU, Palm Oil Mill Stock Exchange with 1.5 Suayap MKM and MPP commissioned billion new shares issued

2000 First 103Ha palm oil 71 plantation planted 66 68 59 50 51 46 2006 41 First production of CPO at 36 Sulung Palm Oil Mill 31 25 15 18 8 3 - 0 0 1

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

Total Planted Area (‘000 Hectares)

6 02. Business Overview Business Overview

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

(1) Other Planted Area Others Unplanted 70,984 12,911 Area 16,040 • Most of the landbank have • Substantial room for Conservation Area already obtained location organic growth via permits and land rights unplanted reserves 5,804 Essential Location HGU Infrastructure (2) Permit 46,276 2,945 36,583

High Yielding Plantations… …Despite Young Profile of Plantations

25.0% Prime (8-20 450,000 23.5% 23.7% 23.4% Immature 23.1% 24.0% years) 400,000 (1-3 years) 23.0% Average Age: 350,000 321,238 Average Age: 296,329 289,653 22.0% 12 years 300,000 262,356 1 year • Using high-yielding 2nd

21.0% • High and consistent CPO 250,000 10% generation seeds from

20.0% production and oil 200,000 major providers including

19.0% extraction rates (“OER”) 150,000 65% Lonsum, Socfin, Damimas

18.0% and TopasAsianAgri 100,000

17.0% 50,000 25% Young 0 16.0% Mature (4-7 2014 2015 2016 9M 2017 years)

CPO Production (MT) OER (%) Average Age: 5 years

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. 8 Business Overview (Cont’d)

Supported with group livestock synergy To support various • Integration of cattle customers, both domestic support operations and and overseas government plan for beef • 70.0% of sales for consumption domestic usage; • Reduction of weeding, • Remaining 30.0% integrated with breeding entitled for export; and fattening • Supported by a branch • Combined organic office in Jakarta; and fertilizer to improve • Operated by 6,066 productivity and cost permanent employees efficiency (as of 30 Sep 2017)

Plantation Processing Plants High Quality Products

Total 70,984 Ha Processing Plant from To support customers for high planted area across FFB to CPO with a total quality Crude Palm Oil and Crude Central Kalimantan installed capacity of Palm Kernel Oil, which can be used 375MT/hour as feedstock for diverse CPO refinery products • Generating a high Oil Extraction Rate at the CPO • Current capacity utilization set to improve mill of 23.1% (CPO); 4.1% (Palm Kernel); and in line with acquisition and planted area 39.5% (Crude PKO). growth • Young and high-yielding plantations with average maturity profile of 8.3 years • One of the highest yielding CPO plantations in Indonesia

9 Our Commitment to Sustainability  Target 100% RSPO Certification by 2020  PartnershipClose withEngagement The Forest with Trust TFT (“TFT”) 100% RSPO Roadmap The Forest Trust (“TFT”) is a renowned group of social 2018 2019 2020 and environmental experts in commodity supply chains

Initiation of TSA Visit and Scoping Exercise RSPO 1 MKM Certification  TFT visited our plantations in Pangkalan Bun and undertook KSA Process for our a “scoping exercise” MPP Smallholders & SMU Supply Chains 2 Identified Strengths – TFT produced a report that identified the following strengths:  SSMS and MMS mills, which produce c.56% of total CPO in 2016  Progress in implementing the High Conservation Value are RSPO certified since 2013  Continuous development of internal training programs  ISPO certification for Kenambui, Sulung, Rangda, Kondang, Pulau,  General understanding of our staff and plasma farmers Selangkun, and Rungun Estates since 2013 of our policies, especially in the area of legal compliance  Aiming for all estates and operations to be RSPO certified by 2020 3 Granting of Membership with TFT BOSF Orangutan Conservation  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

4 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  SSMS has partnered with the Borneo Orangutan  The fund will have potential for future integration into an Survival Foundation (“BOSF”) to purchase and independent fund maintain Salat Island for the conservation of  The funds will be used by local communities and supplier orangutans companies to secure and protect forests at risk of  SSMS has budgeted for the cost of the orangutan conversion to oil palm or other commodities conservation programme

10 Support the Nation with Environmentally Friendly Actions…

• 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

11 Consistently Support Harmonious Relationships with All Stakeholders

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

Cultural, Social and Empowering Health Community Program Education Program Empowerment

Accommodate Participate in Increase residents with knowledge- awareness about food and sharing about the importance of commodity stocks, plantations, healthcare and and treatment industry and wellness plans entrepreneurship Affordable markets, basic food distribution, Scholarships for children, free school Free diagnosis, communal treatment, development of places of worship admission, teacher training, Internships, blood donor programs Learning Media and Equipment

Environmental Infrastructure Program for Economic Conservation Program Program Empowerment Community

Tree replanting Dedicated to Provide and treatment projects that bring opportunities to the company and increase community community self- together reliance

1 million tree plan to be developed, plant Water supply developments, road and Assist in Working Capital loans, maintenance bridges, village electrification Integrated Farming & Fishery and Disability Assistance

12 03. Key Credit Highlights Summary Credit Highlight

Young Maturity Profile Providing Visibility for Future 1 Production Growth

High Yielding and Efficient Plantation Operations Supporting 2 Low Cost Operations

Favourable Location Enables Higher Efficiency and Stronger 3 Cost Competitive Position

4 Strong CPO Fundamentals and Outlook

5 Strong Operating Profile leading to Resilient Financial Profile

Well Experienced Management Team with Proven Track 6 Record

14 1 Young Maturity Profile Providing Visibility for Future Production Growth

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.

Total Planted Area by Planted Year (Ha)

Immature (1 – 3 years) Young Mature (4 – 7 years) Prime Mature (8 – 20 years) 10% 25% 65% 8,699 8,432

7,060 6,765 6,978 6,002 5,445 5,009 4,057 2,677 2,556 2,796 2,129 728 1,042 336 174 103

9M 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

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

Pick up in production yield as Up to 33 MT/Ha during trees move from young mature steady state Pick up in production to prime stage as immature trees move into young mature stage

31 32 32 33 32 31 28 29 30 28 25 22 18 14

1 2 3 4 5 6 7 8 9 10 11 12 13 14 23 24 25 15 2 High Yielding and Efficient Plantation Operations Supporting Low Cost Operations

Plant Productivity Cash Cost Breakdown for 9M 2017

Higher FFB yield, OER and CPO yield compared to average among peers SSMS - Cash Cost Units 9M Sep 2017 FY16 Peers Comparison – FFB Yield (MT/Ha) Fertilizer and maintenance Rp bn 253 19.4 19.0 18.3 Average 17.4 16.8 14.7 16.5 Labor Rp bn 199

10.0 Harvesting Rp bn 43

Overhead Rp bn 128

Total field cost Rp bn 622 SSMS GAR Astra Agro Lestari DNS First LNS SGRO

GAR Agribusiness London Sumatra Sampoerna Agro & Food FY16 Peers Comparison – OER (%) FFB production K tons 938 23.9% 23.4% Average Field cost / FFB Rp /kg 664 22.5% 22.5% 22.2% 22.3% OER % 23.1% 21.0% 20.8% Field cost / CPO Rp /kg 2,874

SSMS DNS First LNS GAR Astra Agro Lestari SGRO Milling cost Rp bn 63 GAR Agribusiness London Sumatra Sampoerna Agro & Food FY16 Peers Comparison – CPO Yield (MT/Ha) CPO production K tons 262 4.5 4.3 4.2 Milling cost / CPO Rp /kg 241 3.9 3.8 Average 3.4 3.7 2.1 Total Cash Cost / CPO Rp /kg 3,115

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

SSMS DNS GAR Astra Agro Lestari First LNS SGRO USD/mt 231

GAR Agribusiness London Sumatra & Food Sampoerna Agro Source : The respective companies’ public filings for peer companies data 16 Favourable Location Enables Higher Efficiency and Stronger Cost Competitive 3 Position

Transportation and infrastructure benefits

 All assets are concentrated in the same SMU area within a 60km radius  Covered by a dense network of “all weather” roads built to ensure that every MPP part of the plantations is easily accessible TSA

at all times Kabupaten Lamandau Proximity to Kumai Port and Iskandar  Nanga Bulik Airport, and located along the Trans- CENTRAL KALIMANTAN Borneo highway  Well established infrastructure

Cost benefits from operational MMS Kabupaten Kotawaringin Barat synergies WEST KALIMANTAN SSMS

 Lower transportation costs and optimal logistics Kabupaten Sukamara KSA Plantation Entities  Higher quality of FFB and CPO products Kalimantan Pangkalan Bun due to efficient transportation (lower FFA Iskandar Airport KSA = PT. Kalimantan Sawit %) Abadi

Kumai Port Jetty, bulking facility & future refinery MKM = PT. Menteng Kencana Central Kalimantan’s climate is ideal for Mas CPO production MMS = PT. Mitra Mendawai  High rainfall levels at approximately Sejati MKM 2,800mm – 3,000mm of rainfall a year with MPP = PT. Mirza Pratama Putra at least 4.5 – 5 hours of sunshine daily SMU = PT. Sawit Multi Utama  High mineral content soil with small SSMS = PT. Sawit Sumbermas Sarana Tbk proportion of shallow peat soil JAVA SEA  Mean annual temperature of 31°C and TSA = PT. Tanjung Sawit Abadi high humidity Plantation Iskandar Jetty, bulking facility  Relatively flat and undulating reduces Kumai Port Key city Trans-Borneo Highway planting, maintenance and harvesting costs Estates Airport & future refinery

4 Strong CPO Global Outlook and Fundamentals

Significant room for further growth in key palm oil consuming Strong demand drivers for Global CPO consumption countries

Edible Oil Consumption: 2006 2016  Growing demand for food primarily in Asia especially China and Kg per Capita India 67.1 64.4 Average: 65.8  Expansion of oleochemical requirements 56.0 54.1  Increased awareness of health benefits of palm oil compared to Average: 55.1 other seed oils 43.1 Considerable additional demand  Increased use in biodiesel growth potential Average: 27.9 24.3 26.5 21.9 M tonnes of CPO 19.2 20.3 17.5 Average: 18.3 11.8

62.5 60.8 59.5 US EU-28 Indonesia Pakistan China India 57.9 52.6 Palm oil is the cheapest and highest yielding edible oil 48.8 45.3 46.4 42.6 Yield: Tonne/ha 5 37.8 36.2 Palm 4

2 Rapeseed 1 Soya

0 200 400 600 800 1,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Production Cost: US$/tonne

Source: Oilworld 18 4 Strong CPO Global Outlook and Fundamentals (Cont’d)

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 US$ / MT 210 10 1,400 17

63 165 1,200 53

0 159 1,000 227 US$741 238 221 800 0 234 86 600 US$653 20 400

US$231 200

0 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 SSMS’ average cash cost per ton of CPO produced for 9M 2017

Source: Bloomberg 19 4 Indonesia Expected to Remain a Significant CPO Player

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

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

M tonnes of CPO M tonnes of CPO

Indonesia Malaysia Rest of world Indonesia % share Indonesia Malaysia Rest of world Indonesia % share (Indonesian % share of total output) total of share % (Indonesian 70 54% 60% 60.0 55% 60% export)total of share % (Indonesian 52% 53% 52% 53% 50% 51% 49% 47% 48% 48% 47% 47% 60 45% 44% 50% 50.0 45% 50% 43% 43% 43% 44% 42% 50 40% 40.0 40% 40 30% 30.0 30% 30 20% 20.0 20%

10 10% 10.0 10%

0 0% 0.0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Indonesia is also one of the largest consumers of palm oil

M tonnes of CPO Consumption CAGR 9.3 9.2 9.2 (10 Year CAGR until 2016) 8.5 8.6 8.0 7.6 7.9 India 11.6% 7.1 7.0 7.1 7.1 7.3 7.0 6.2 6.3 6.0 6.1 5.7 5.1 Indonesia 9.5%

Europe (EU-28) 5.0%

China -0.6%

2012 2013 2014 2015 2016

Indonesia India China Europe (EU-28)

Source: Oilworld 20 5 Strong Operating Profile Leading to Resilient Financials

CPO Production Increased production as our plantations mature MT '000 and enter into their prime production age Slight decrease due to  adverse weather conditions 321 296 290 262 Strategic location, logistical efficiencies and  best practices in plantation management

2014 2015 2016 9M 2017 Application of best-in-class agronomy practices Revenue  USD mm 249 194 202 176

Nursery Maintenance

• Use of only high yield • High quality fertilizer seeds complemented with organic fertilizer from byproducts of • Culling of unhealthy mills 2014 2015 2016 LTM Sep '17 seeds • Natural methods for planting EBITDA and Margin and pest control USD mm / %

250 49.7% 50.3% 46.9% 51.1%

200

Harvesting Yield Analysis 150 127 96 88 95

100

• Harvest at maximum • Yield gap analysis to 50 oil content benchmark against 0 industry 2014 2015 2016 LTM Sep '17 • Processed within 12 hours EBITDA EBITDA margin 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 21 consolidated financials for the nine months ended 30 September 2016. 6 Well Experienced Management Team with Proven Track Record

Board of Commissioners Board of Directors

Marzuki Usman Rimbun Situmorang Ramzi Sastra Nicholas Justin Whittle

Independent Commissioner Commissioner Director Unaffiliated Director and CFO

• Since August 2013 • Since August 2016 • Since August 2013 • Since December 2016 • 46 Years experience in oil palm industry • 16 Years experience in oil palm industry • 18 Years experience in oil palm industry • More than 25 years experience in finance industry.

Bungaran Saragih Vallauthan Subraminam

President Commissioner President Director

• Since August 2013 • Since August 2016 • 44 Years experience in oil palm industry • 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.

22 04. Operational Analysis High Yielding Plantation Despite Unfavourable Conditions In 2016

FFB Crude Palm Oil

MT MT 25.0%

450,000 23.7% 1,600,000 21.0 30.0 23.5% 23.4% 20.1 19.4 23.1% 24.0%

400,000 20.0 1,400,000

14.6 23.0%

350,000 321,238 10.0 1,200,000 1,094,463 1,019,156 1,074,050 296,329 289,653 22.0% 300,000 938,025 - 262,356 1,000,000 21.0%

250,000 (10.0)

800,000 20.0%

200,000

(20.0)

600,000 19.0%

150,000

(30.0)

18.0% 400,000 100,000

(40.0)

17.0% 50,000 200,000 (50.0)

0 16.0%

0 (60.0) 2014 2015 2016 9M 2017 2014 2015 2016 9M 2017 Production Yield (MT/Ha) Production OER

Palm Kernel Crude Palm Kernel Oil

MT MT

10,000 39.4% 39.0% 40.2% 39.5% 90,000 5.0% 4.3% 4.5% 4.4% 40.0% 9,000 4.5% 80,000 4.1%

35.0%

8,000 4.0% 70,000 6,715 6,826 6,758 60,861 30.0% 7,000 3.5% 6,227 60,000 53,533 54,005

6,000 46,707 3.0% 25.0% 50,000

2.5% 5,000

20.0%

40,000

2.0% 4,000

15.0%

30,000

1.5% 3,000

10.0% 20,000

1.0% 2,000

10,000 5.0% 0.5% 1,000

0 0.0% 0 0.0% 2014 2015 2016 9M 2017 2014 2015 2016 9M 2017 Production KER Production KOER

24 05. Financial Performance Prudent Financial Policy

Prudent Financial Management Strong Risk Management

Modest • Maintain debt to equity leverage of less • Investments are decided after careful Balance than 1.0x Investment review and the assessment of a • Maintain gross debt to EBITDA leverage Sheet Policy feasibility study of around 3.0x Leverage

• Business profile provides a natural Diversified • Secure diversified funding sources from Hedging hedge against USD/IDR fluctuations banks and both domestic and Funding international capital markets Policies Channels • Do not practice hedging of CPO price

• Annual dividends to be distributed in an • Manage liquidity risk by maintaining amount up to 30% of net income for cash and cash equivalents sufficient to Significant Dividend each year, normalized by excluding net meet our commitments for normal foreign exchange gains/losses, deferred Liquidity operations, regularly evaluating cash Policy tax revenues or expenses, and flow projections and actual cash flows deducting all specified reserves

26 Strong Financials and Margins

Revenue EBITDA and Margin USD mm USD mm / %

250 249 49.7% 50.3% 51.1% 46.9%

200 194 202 176 150 127 96 95

100 88

0 2014 2015 2016 LTM Sep '17 2014 2015 2016 LTM Sep '17 EBITDA EBITDA margin

EBIT and Margin Net Income and Net Income Margin USD mm / % USD mm / %

250

45.0%

40.0% 42.4% 41.9% 43.5% 200 38.2% 35.0%

25.4% 26.4% 30.0% 150 24.0%

21.7% 25.0% 108

20.0% 82 74 77 100 66 15.0% 49 44 42 10.0% 50

5.0%

0 0.0% 2014 2015 2016 LTM Sep '17 2014 2015 2016 LTM Sep '17 EBIT EBIT margin Net income Net income margin

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. 27 Stable Credit Metrics and Reducing Capital Expenditure

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

8.0x 7.0x

7.0x 6.4x 6.2x 5.8x 6.0x 3.0x 2.7x 2.8x 2.4x 5.0x 2.5x

4.0x

2.0x

1.4x 3.0x

1.5x

2.0x

1.0x

1.0x 0.5x

0.0x 0.0x 2014 2015 2016 LTM Sep '17 2014 2015 2016 LTM Sep '17

Total Debt / Equity (x) Capital Expenditure

USD mm

1.4x 1.2x 27 26

1.2x 1.1x

1.0x 0.9x

0.8x 0.7x 15

0.6x

0.4x

0.2x

0.0x 2014 2015 2016 LTM Sep '17 2014 2015 2016 9M 2017

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

Issuer of Interest USD mm Type Maturity Currency Principal Facility Rate

BNI SSMS SSMS 2024 IDR IDR1,025bn 9.75 (IDR) BNI SSMS SSMS 2025 IDR IDR265bn 9.75 (IDR) BNI SSMS SSMS 2025 USD USD65mn 5.5 (USD) 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 BNI SMU SMU 2025 USD USD27.1mn 5.5 (USD) 139 TSA BNI TSA (IDR) 2025 IDR IDR465bn 9.75 121

TSA BNI TSA (USD) 2025 USD USD23.3mn 5.5 66 Exim bank MMS 2020 USD USD55.0mn 6.1 MMS 26 IDR 5,142bn / Total Less than 1 year 1 - 2 years 2 - 5 years More than 5 years US$381.1mn

Exchange rate USD:IDR of 13,492 used. 29 06. Appendix Other Company Information CBI Group Business

Subsidiary CBI Group’s Business Description ownership 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%. 32 Management Organization

General Meeting of Shareholders (GMS)

Board of Commissioners

Nomination & Audit Committee President Director Remuneration Committee

Internal Audit

Plantation Operational Finance Director Commercial Director Director

Chief of HR & General Plantation Advisor Corporate Secretary Upstream Engineering Sales and Marketing Affairs

Research & Development Corporate Legal Plantation Administration Procurement HR & General Affairs

License Finance Controller Traksi Logistics Training and Development

Corporate Social Sustainability Corporate Finance Regional Plantation FFB Purchasing Responsibility

Demand Planner & Problem Representative Office Risk Management Medical Solver

HR & General Affairs RO. Legal Jakarta

33 Well-Experienced and Professional Management

Board of Commissioners Board of Directors

Bungaran Saragih | President Vallauthan Subraminam | President Commissioner Director • Since August 2013 • Since August 2016 as President Director, since • 44 Years experience in oil palm industry 2007 in group • Currently Commissioner of PT Rea Kaltim • Over 40 years experience in oil palm industry Plantations, Advisor of PT Japfa Comfeed • Previously regional head in group 2007 – 2012, Indonesia Tbk., Chairman of Board of Trustees Senior Manager of IJM Plantations Berhad, Borneo Orangutan Survival Foundation and Trustee Executive Director PT Domba Mas Group, of Roundtable on Sustainable Palm Oil Plantation Manager Asian Agri Group, Kemayan Oil • Previously Chairman of Board of Governors Palm Berhad International Fund for Agricultural Development, • Education: Institute of Supervisory Management, Minister of Agriculture of Indonesia United Kingdom Nicholas Justin Whittle | Unaffiliated Marzuki Usman | Independent Director and CFO Commissioner • Since December 2016 • Since August 2013 • More than 25 years experience in finance • 46 Years experience in oil palm industry industry • Previously Minister of Forestry of Indonesia, • Previous positions include CFO of Hot-Hed President Commissioner of PT PP London International S.A., and Technical Advisor to PT Sumatera Tbk. Trimegah Securities Tbk. • Education: Cambridge (Bachelor and Master); Columbia Business School (MBA) Rimbun Situmorang | Commissioner Ramzi Sastra | Director • Since August 2016 • Since August 2013, served as Deputy • 16 Years experience in oil palm industry Commercial Director • Also acts as President Commissioner of PT • 18 Years experience in oil palm industry Kalimantan Sawit Abadi • Previously Commercial Manager PT Bakrie • Previously served as Director in Citra Borneo Sumatera Plantation and Commercial Manager PT Group Flora Sawita Chemindo • Education: University of North Sumatra (Bachelor); Jakarta Institute of Management Studies (Master)

34 Achievement and Certification

RSPO ISPO

• Received RSPO certification for Sulung Mill (SSMS), Selangkun • Received ISPO certification for Kenambui, Sulung, Rangda, Mill (SSMS) and Suayap Mill (MMS) Kondang, Pulau, Selangkun, and Rungun Estates

ISO 9001, ISO 14001 and OHSAS 18001 PROPER blue

• The Citra Borneo Indah Group (including CBI and SSMS. and its • Awarded “Blue” PROPER certification by the Ministry of the subsidiaries) is certified ISO 14001: 2004, OHSAS 18001: 2007 Environment and Forestry for 2015-2016 and ISO 9001:2008

35 Land Rights Obtaining Sequence

Land Acquisition Issuance of the 2 Cadastral Map The land acquisition must be completed within the 4 by the Land validity period of the location permit. Location Issuance of the permit is valid for 3 years and can be extended for Office another year if the company already acquired at Ministerial least 50% of the intended land. 8 Decree Apply for HGU Regarding the Obtain Land acquisition can be done by way of (depending to the Land Approval of 1 Location on the type of the land), among others: 5 Office • plant growth compensation to the local HGU Permit communities; • forest relinquishment or forest exchange to the This is a license granted Ministry of Environment and Forestry; and by the government to Land Office to • land purchase/ relinquish from the previous enable a company owner. Form/ Establish acquiring or relinquish Registration for 6 Panitia B land with area and HGU Certificate location that are specified 9 in the related license. to the Relevant

3 Apply for Land Land Land Office Measurement Assessment and Apply for land measurement (cadastral process) to 7 Recommendati the land office followed by the issuance of cadastral on by Panitia B map.

36,583 ha (Location Permit) 3,919 ha (Relinquished Land) 8,992 ha (Cadastral) 46,276 ha (HGU)

36 Support the Protection of Orangutans’ Habitat

• 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

37 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