#1Bakrie Sumatera Plantations Public Expose Jakarta, 21 December 2017#2Today's Agenda • Quick History 1911-2017 • Shareholders & Management • Assets • Performance • Going Forward PT. Bakrie Sumatera Plantations Tbk | Management Presentation | December 2017 2#31911 1986 1987 Milestones Established as rubber plantation and processing company Acquired by Bakrie & Brothers Diversify into palm oil via establishment of North Sumatera Unit 1990 1992 2003 Listed on the Jakarta Stock Exchange and Surabaya Stock Exchange Renamed to PT Bakrie Sumatera Plantations Tbk 2004 Obtained ISO 9001 Quality Management System Certification for North Sumatera Unit Stock Split and Rights Issue I 2005 2007 ISO 14001 Environmental Management System Certification for North Sumatera Unit Rights Issue II and Warrant series 1 Establishment of Agri Resources BV palm plantation in Sumatera OHSAS 18001 Safety & Health Management System for North Sumatera Unit Obtained RSPO Certification for North Sumatera Unit 2009 2010 Rights Issue III and Warrant series 2 Further expansion into palm oil and rubber Entered oleo chemical business with P&G off-take Cooperation with ASD Costa Rica in developing high productivity seed 2011 100-year anniversary of UNSP 2012 70-year anniversary of Bakrie Group Obtained RSPO Certification for Jambi Unit 2014 2015 2016 Obtained ISPO Certification for Jambi Unit (AGW) Obtained ISPO Certification for North Sumatera Unit Obtained RSPO ReCertification for North Sumatera Unit Obtained ISPO Certification for West Sumatera Unit Obtained ISPO Certification for Jambi Unit (SNP) and other units are in progress 2017 Reverse Stock Split PT. Bakrie Sumatera Plantations Tbk | Management Presentation | December 2017 Rubber 33,3% FFB 1,9% CPQ 55,6% PK 9,2% UNSP-9m17 Revenue Contribution 3#4Shareholders (as of 19 Dec 2017) 16,951 public shareholders in 119 sekuritas and custodian Local: 76% individuals + 11% institutions (= 87%) Foreign: 12% institutions + 1% individuals (= 13%) 4#5BSP Organization Structure Board of Commissioners ■ Nalinkant Amratlal Rathod ■ Bobby Gafur Umar ■ Anindya Novyan Bakrie ■ Benny Theno Johnny Widjaja President Director/CEO Bayu Irianto Director Director Adhika Andrayudha Bakrie Andi W. Setianto PT. Bakrie Sumatera Plantations Tbk | Management Presentation | December 2017 Director B.S. Vinayak Director C.S Seshadri 5#6Estates and Mills * Data up to Sept 2017 Planted Hectarage (Ha) Palm Oil Nucleus BSP Kisaran North Sumatra 9.897 NAGROE ACEH DARUSSALAM GLP North Sumatra 7.728 BPP West Sumatra 8.791 CCI West Sumatra 2.025 NORTH SUMATRA AGW Jambi 4.418 SNP Jambi 7.039 MIB South Kalimantan 4.430 Total Palm Oil Nucleus 44.327 Palm Oil Plasma WEST SUMATRA BPP AGW West Sumatra Jambi 6.347 7.701 Total Palm Oil Plasma 14.048 Rubber BSP Kisaran North Sumatra AMR Bengkulu JOP Bengkulu HIM Lampung Total Rubber Total Planted 10.726 2.610 2.400 3.366 19.102 RIAU JAMBI BATAM SOUTH SUMATRA BENGKULU LAMPUNG JAKARTA WEST KALIMANTAN BRUNEI MALAYSIA EAST KALIMANTAN CENTRAL KALIMANTAN MADURA CENTRAL JAVA WEST JAVA YOGYAKARTA EAST JAVA Mills and Factories CPO Mills (5) Rubber Factories (4) Fatty Acid FSC Fatty Acid I Fatty Alcohol I Fatty Acid II Installed Capacity 225 MT per hour 49,519 MT p.a 52,800 MT p.a 99,000 MT p.a 33,000 MT p.a 82,500 MT p.a Fatty Alcohol II 99,000 MT p.a 77.477 End Products Crude Palm Oil Natural Rubber Fatty Acid, Glycerin Fatty Acid, Glycerin Fatty Alcohol Fatty Acid, Glycerin Fatty Alcohol Location N.Sumatera (2), W.Sumatera, Jambi (2) N. Sumatera, S.Sumatera, Bengkulu, Lampung N.Sumatera-Tanjung Morawa • CPO Refinery 495,000 MT p.a Olein, Stearin, PFAD N.Sumatera-Kuala Tanjung N.Sumatera-Kuala Tanjung N.Sumatera-Kuala Tanjung N.Sumatera-Kuala Tanjung N.Sumatera-Kuala Tanjung • • Kernel Crusher 165,000 MT p.a Crude Palm Kernel Oil N.Sumatera-Kuala Tanjung PT. Bakrie Sumatera Plantations Tbk | Management Presentation | December 2017 SOUTH KALIMANTAN 77,477 Ha planted, with 91 % mature and 9% immature 5 palm oil mills, 4 rubber factories, 5 oleo chemical plants, 1 refinery plant, and 1 kernel crushing plant ISO and RSPO sustainability- compliant 13,492 employees 6#7Kuala Tanjung Layout KCP Refinery Alcohol 1 Alcohol 2 2.5 km Jetty 2 12 m draft 20,000 DWT 2.1 km J MANA Jetty 3 5 m - draft 3,000 DWT Acid 1 Kuala Tanjung Olechemical Complex ■ Total Land Area : ± 72 hectares ■ 120 Km Southeast of Medan ■ Access to major sea lanes ■Facilities include: Two Fatty Acid Plants Two Fatty Alcohol Plants Kernel Crushing Plant Refinery Plant Jetty Line of ± 2.7 km Acid 2 Access Inalum Road PT. Bakrie Sumatera Plantations Tbk | Management Presentation | December 2017 7#8- Production Summary Palm Oil FFB Production (MT) FY15 FY16 9M16 9M17 %Change Nucleus Nucleus yield/Ha Plasma 462.194 413.879 12,2 10,8 165.130 83.938 Plasma yield/Ha 12,4 6,3 Purchased 352.166 134.663 Total FFB Supply 979.490 632.480 295.511 7,6 68.433 5,0 134.663 498.607 315.238 7% Compared to 9M16, as of 9M17 FFB 7,9 3% 50.544 -26% 3,7 -26% production from nucleus plantation increased by 7% to 315,238 tons 74 -100% 365.856 -27% Mill Production (MT) FFB Put into Process 961.937 614.729 486.327 353.886 -27% CPO 192.460 125.291 97.535 77.467 -21% CPO Extraction Rate 20,0% 20,4% 20,1% 21,9% 9,1% Palm Kernel 41.910 26.012 20.409 15.804 -23% Kernel Extraction Rate 4,4% 4,2% 4,2% 4,5% 6% Planted Area (Ha) UNSP Estates Profile 9M17 Palm Nucleus Mature 39.861 Immature 4.466 Nucleus Planted 44.327 Palm Plasma Plasma Mature 13.646 mature Plasma - Immature 402 92% Plasma Planted 14.048 Total Planted Area 58.375 250 UNSP-CPO Production ('000 Ton) 192,5 200 immature 150 8% PT. Bakrie Sumatera Plantations Tbk | Management Presentation | December 2017 100 50 125,3 97,5 77,5 FY15 FY16 9M16 9M17 8#9Production Summary - Rubber Field Production Rubber (MT) FY15 FY16 9M16 9M17 %Change Nucleus 20.448 21.494 15.723 15.130 -4% Nucleus yield/Ha 1,3 1,3 Purchased 5.886 1.962 1,0 1.821 0,9 -8% 275 -85% Total Field Rubber Supply 26.334 23.456 17.544 15.405 -12% Factory Production (MT) Nature Rubber 23.788 23.105 17.125 13.582 -21% Planted Area (Ha) Rubber Nucleus UNSP - Estate Profile 9M17 Mature 16.925 Immature 2.177 Total Planted Area 19.102 Mature 89% • Compared to 9M16, as of 9M17 Field Production Rubber maintained at 15,130 tons UNSP - Rubber Production ('000 Ton) 25 25 23,8 23,1 20 immature 11% 15 PT. Bakrie Sumatera Plantations Tbk | Management Presentation | December 2017 10 5 17,1 13,6 FY15 FY16 9M16 9M17 9#10Financial Summary Sales Detail UNSP CPO Sales Volume ('000 Ton) Sales Revenue (in IDR bn) FY15 FY16 9M16 9M17 %Change - FFB 19 25 17 22 24% CPO 1.315 944 714 634 -11% PK 190 176 130 105 -19% 250 Rubber 497 419 302 380 26% 191,7 Oleo 200 Total 2.022 1.565 1.163 1.140 -2% 150 Sales Volume (MT) FFB 16.809 16.576 11.962 12.849 7% 100 CPO 191.700 125.671 96.680 77.286 -20% 50 PK 41.815 26.189 21.547 15.502 -28% Rubber 25.985 23.489 17.469 15.392 -12% Oleo Average Selling Price (USD/MT) FFB 86 115 109 126 16% CPO 512 565 554 615 11% PK 340 505 452 507 12% Rubber 1.428 1.342 1.295 1.853 43% Oleo 1.000 125,7 96,7 77,3 FY15 FY16 9M16 9M17 UNSP - Average Selling Prices (USD/Ton) 1.853 2.000 Product Sales Contribution FY15 FY16 9M16 9M17 FFB 1,0% 1,6% 1,5% 1,9% 900 Rubber 1.342 CPO 65,0% 60,3% 61,4% 55,6% 1.295 1.428 800 PK 9,4% 11,3% 11,2% 9,2% Rubber 24,6% 26,8% 25,9% 33,3% 700 Oleo PT. Bakrie Sumatera Plantations Tbk | Management Presentation | December 2017 600 CPO 565 615 512 554 500 FY15 FY16 9M16 9M17 1.000 10#11Consolidated Financial Summary Profit & Loss (in IDR bn) Sales FY15 FY16 9M16 9M17 2.022 1.565 1.163 1.140 Gross Profit 518 476 301 500 Operating Income 85 58 -7 182 EBITDA 263 245 127 317 Net Income (Loss) Current Period -470 -485 -253 -689 Margins Gross Margin 26% 24% 26% 44% Operating Margin 4% 3% -1% 16% EBITDA Margin 13% 12% 11% 28% Net Income (Loss) Margin -23% -24% -22% -60% Balance Sheet (in IDR bn) FY15 FY16 9M16 9M17 Current Assets 1.473 1.015 1.167 1.410 Non Current Assets 13.835 13.685 15.147 13.056 Total Assets 15.308 14.700 16.314 14.466 Current Liabilities 8.017 10.293 9.090 11.289 Non Current Liabilities 5.623 3.210 3.988 2.669 Total Liabilities Equity 13.640 1.668 13.503 13.078 13.958 1.197 3.236 508 Total Liabilities and Equity 15.308 14.700 16.314 14.466 PT. Bakrie Sumatera Plantations Tbk | Management Presentation | December 2017 ● Compared to 9M16, better 9M17 profitability resulting from higher commodities prices and lower third-party purchase 11#12Overview, Challenge, and Strategy • Overview of Palm Oil and Rubber • - We have a view of continuing stable global demand for palm oil and rubber driven by continuous use of such in consumer goods products Even though the short term price trends remain concern, we have a view of positively stable prices for the medium and long term Focus on Sustainable Productivity and Profitability We acknowledge our current challenges to improve productivity and profitability, we therefore are committed to: - Improve and optimize the estate management system; including but not limited to better progeny, field operation, water management, tree-age management, pest control, etc - Improve quality of infrastructure, both production and support facilities - Reduce debt and its related costs • Oleochemical / Downstream Business Revitalization program of our Oleochemical project is on-going PT. Bakrie Sumatera Plantations Tbk | Management Presentation | December 2017 12#13FACILITIES AND SUPPLY CHAIN UPDATE BAKRIE SUMATERA PLANTATIONS OLEOCHEMICALS HAS LAUNCHED By: Dan Cooper, EurAsia Associate Director In September, we broke the news that we were expanding our oleochemicals network with the integration of Bakrie Sumatera Plantations (BSP) Oleochemicals Indonesia. This marks a significant new chapter in the 160- year history of P&G Chemicals. The integration will expand our product portfolio to include fatty acids, glycerin and fatty alcohols, offering an added output to the current P&G Chemicals portfolio. Their supply will give us greater flexibility on both location and portfolio choices to offer across the multiple industries and continents we serve. In 2011, BSP acquired the former Domba Mas operations located in Kuala Tanjung, Sumatera. At the time, a robust supply of utilities and logistics intrastructure could not support such a large, world-scale production facility operation. But since then, the Indonesian government has started heavily investing in the Kuala Tanjung area, and has built a much stronger utilities network on Sumatera - as well as a second government port in close proximity to the plant. In July, P&G Chemicals established a joint integration team covering multiple functions to manage such a complex project. Preparations have advanced with restart preparations in place for the end of the year. P&G Chemicals will be the offtake partner for the products they produce, as their production will occur in phases. We continue to significantly invest in bringing innovation to all aspects of our business. This includes the BSP plant in Indonesia, as well as the digitization of many of our process architectures. Streamlining these architectures will make it simpler and easier to do business with our customers and suppliers across the globe. P&G Chemicals Delivering solutions, creating value OLEO REPORTER EXECUTIVE PERSPECTIVE By Dan Cooper, EurAsia Associate Director The European Petrochemical Conference Association (EPCA) held its meeting this year in Berlin, Germany. The general sentiment surrounding the chemicals industry is promising - the industry is seeing a more positive outlook than before, with demand increasing and a stronger, more favorable trading environment across the European region. P&G Chemicals was well represented at the event, and met with a broad spectrum of our customers and suppliers over four days. Breaking news at EPCA was the announcement that P&G Chemicals is expanding our oleochemicals network with the integration of Bakrie Sumatera Plantations (BSP) Oleochemicals in Indonesia. It comes as part of a larger plan of significant investment in P&G Chemicals, which includes the digitization of many of our process architectures. The world-scale facility, which was acquired in 2011, is located in Kuala Tanjung, Sumatera. The utility and logistics infrastructure is now in place to support large scale production by the end of the year. This plant will produce fatty acids, glycerin and fatty alcohols, giving our customers greater flexibility on both location and portfolio choices for their business. This truly marks a significant new chapter in our history and the first major investment by P&G in the industry for over 25 years. Please have a restful and peaceful break over the coming festive season and here's to celebrating the first shipments from BSP Oleochemicals together! DECEMBER 2017 IN THIS EDITION EXECUTIVE PERSPECTIVE....... 1 OIL NEWS 2 MARKET UPDATES Asia Market Update. European Market Update North American Market Update...3 Global Glycerin Market Update....4 UPCOMING INDUSTRY EVENTS P&G CHEMICALS NEWS P&G Chemicals Americas Customer Online Updates Facilities and Supply Chain Update.... Small Holder Program Update......5 P&G NEWS When a Community Gives Back...6 P&G - A Force for Good.. P&G Chemicals 13#14Bakrie Sumatera Plantations Thank You Visit our website at: www.bakriesumatera.com Address: PT Bakrie Sumatera Plantations Tbk Corporate Center Kompleks Rasuna Epicentrum Bakrie Tower 18th-19th floor Jl. H.R. Rasuna Said Jakarta 12960, Indonesia Contact: Fitri Barnas Corporate Secretary e-mail [email protected] office +62 21 2994 1286-87 Andi W. Setianto Shintya Dwi Rachmasari Investor Relations Team e-mail: [email protected] [email protected] office +62 21 2994 1286-87 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Any forward looking statements are based on estimation, the realization thereof may deviate. PT Bakrie Sumatera Plantations Tbk accepts no liability whatsoever with respect to the use of this document or its contents. PT. Bakrie Sumatera Plantations Tbk | Management Presentation | December 2017 14