PT Dharma Satya Nusantara Tbk · IDX:DSNG

PT Dharma Satya Nusantara Tbk — FY2016 Earnings Presentation

16 slides from PT Dharma Satya Nusantara Tbk's earnings presentation, Apr 30, 2017

1. Slide 1: DSN Group Full Year 2016 Results Update

   DSN Group Full Year 2016 Results Update # &!$ # (, #, !# &# !6 6 ( !# &%$ $ 6 % 6 6#%$- &# !6%% !#% $ # % $% !# &%' % $% #- # &!($ $%6$ 058/, #66* !#% 6 ( !# &%$ &%&#-'#$ % % !6%% $% # 0554,&6 &! &# $%# #6% $!$ (% &#6 6 &%$- !6 6 &$$$ $ $# # (%%!$%$'#6 *#$, &% # 759 &# % %6#'& 1/03, ( $ (%# %*# #&%

2. Slide 2: El Nino negatively impacted productivity through 2016, partially offset by stronger prices

   The recent El Nino had a negative impact on productivity through 2016, partially offset by stronger prices 2 PT Dharma Satya Nusantara Tbk (DSNG.JK)

3. Slide 3: Our estates are clustered across East, West and Central Kalimantan

   Our estates are clustered across East, West and Central Kalimantan, with acquisitions AAN & MNS in the West ! # +)*.( 11$1 Nucleus (‘000 ha) 1 &+)*2% Total 163.6 #1 Planted 69.4 $ 1 & Mature 56.3 N. Kal $ -%# 1 20%,231 !1!% # .2%+/0 !% 2 "3&.*)&) 5 4 $ "1$& 3 E. Kal W. Kal ! 6 1 %!$1#*/&- C. Kal '+)

4. Slide 4: Planted area has grown by acquisition and planting, with 2016 planting curtailed

   Our planted area has grown by acquisition and planting, with planting in 2016 curtailed on regulatory uncertainty =1,000ha *()- 0 0#)$/(( 0 0 00 1(( 0 $!)$*(( & 00 ! % $ 0 0 $ !00 0" ,/2 0 % "-# $ 0 *($/*( " )$+(2 0 0 % .($((( % ).$/), 0$ 0#0 0 0$ !0 00 % 4 PT Dharma Satya Nusantara Tbk (DSNG.JK)

5. Slide 5: Planting and age profile suggests average 10% annual FFB growth through 2018

   Our planting and age profile to date suggests an average 10% annual growth in FFB production through 2018 =1,000ha ) ) $"#( ) $*& ) ) )!$"$" ) ) ) $%' $"#& FY 2016 Results Update 5

6. Slide 6: Exceptional yields were depressed in 2016 due to the extended dry period

   Historically exceptional yields from our estates were depressed in 2016 due to the extended dry period ,&$%) &$%-! ,&$%*, , ,,," ,&$%.! ,, )- &*+ &$%--+ '-. &$%+ , , , ,,%!.( ,,&$&$! 6 PT Dharma Satya Nusantara Tbk (DSNG.JK)

7. Slide 7: Rainfall return in H2 2016 recovered nucleus volumes in Q4

   The return of rainfall in H2 2016 resulted in nucleus volumes recovering in Q4 to just 13% below 2015 ! &' % %! % % % $(!" % % & % % !# ! % (! %% %% %% ( !!$ FY 2016 Results Update 7

8. Slide 8: Our most developed cluster is nearly the size of Singapore

   Our most developed cluster - with 5 estates, 5 CPO Mills and 56,000 ha - is nearly the size of Singapore 72;# 8" ! 88+!"' "##!8!" "#"#" 8" #8'"!( 21)111!"")%888! * ! $$8!""! 68888! 8" .!#! /'# ! %""!!""!)%"9" &" 8* 88" "!' * "!" #8'02:- 031 # :-# !" 88 88)"!!03)111 $!"-"-88 !#8"!8% "$8"!"! !88% * "

9. Slide 9: Lower FFB production and OER led to lower CPO output and higher FFA

   Lower FFB production and a slight decline in OER led to a drop in CPO output as well as higher FFA levels #)+%,1 ,*()0$!/ /" & ' //# *+%,1 % //// #),%)1)0$,+.$ ! # // / //!-$.+) % /# # $! / /+%(,1 %/ / " ///!/% /$ 0*%)1 / ! /!/! +1 % FY 2016 Results Update 9

10. Slide 10: Productivity declined from 6.2 to 4.3 tons CPO per hectare in 2016

    DSN’s productivity, declining from 6.2 to 4.3 tons CPO per hectare in 2016, is still in line with 2015 industry average ( #)# #!"& "'% #!") %( *#%+$#!") ( ( (( ##!") ( (( # 10 PT Dharma Satya Nusantara Tbk (DSNG.JK)

11. Slide 11: Expanding domestic refining capacity ensures robust demand for our CPO

    Expanding domestic refining capacity, coupled with our high-quality product, ensures robust demand for our CPO (&$%- , %%*!$ .!$. ,,! &$%), ( DSN Estates DSN Ports '-!%/ DSN Customers &%$) ,, Refineries *!&/! ,, "# +&!+/ , ,,, "# .+!./(&$%)! , , , ''!+ &$%- *!)+,, ,, , ! FY 2016 Results Update 11

12. Slide 12: Costs were lower in 2016, but CPO trading hurt gross margins

    Costs were lower during 2016, but CPO trading had a negative impact on gross margins. - " ,& --(&'.$ % - *%/)-- '.%'0 (&'+% !- -- ) "$ $ )%//--% - -$ - - -- -$ -$ (%,,--$,%,0 - ) " % (,%+0 '+%(--$ - -- --# - "-% 12 PT Dharma Satya Nusantara Tbk (DSNG.JK)

13. Slide 13: DSN is also a leading wood products manufacturer

    DSN is also a leading wood products manufacturer with reputable brand names & long-standing client relationships & ' ! # #' # $ '$ !' ' % $ % ! !'' '#! " ' ' ' $ % ''' ! # !' $ ' % FY 2016 Results Update 13

14. Slide 14: Full Year 2016 Financial Summary

    Full Year 2016 Financial Summary * Restated **Total debt excludes debt backed by restricted cash $ $ # $ " $! 14 PT Dharma Satya Nusantara Tbk (DSNG.JK)

15. Slide 15: Full Year 2016 Operations Summary

    Full Year 2016 Operations Summary FY 2016 Results Update 15

16. Slide 16: Disclaimer

    DISCLAIMER: This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Althoug

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