#1ROSE BRAND MINYAK GORENG SAWIT DIFORTIFIKASI VITAMIN A A KRISTAL PL Manis & Bersih Membuat masakan menjadi Gurih dan Lezat Superbrands) 2013 ISI BERSIH: 2L ROSE BRAND 902 Berat Bersih 1 kg PREMIUM* GULA TEBU DIPRODUKSI OLEH: PT. ADI KARYA GEMILANG SUNGAI BUDI GROUP LAMPUNG 35244 INDONESIA i oleh: ARU LAMPUNG Tbk ROUP INDONESIA SNI S PT. TUNAS BARU LAMPUNG TBK (IDX: TBLA) Investor Presentation 2020 Nov 2020#2DISCLAIMER These materials have been prepared by PT Tunas Baru Lampung Tbk (the “Company”) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. The Company or any of its affiliates, advisers or representatives accepts no liability whatsoever for any loss howsoever arising from any information presented or contained in these materials. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. These materials contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as "expects," "plan," "will," "estimates," "projects," "intends," or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice.#3Company Milestones 1974 2000 2004 2006 2012 2013 2016 2017 2018 Public listing in the IDX. 2nd CPO mill commence operation Join RSPO and extend FOSFA membership Sugar refinery commence operation Sugar mill commence operation PT. Tunas Baru Lampung was established TBLA's first corporate bond issuance Acquired 3rd CPO mill Started oil palm to sugar cane conversion program in Lampung estate First biodiesel plant commence operation Successful issuance of US$200mn global bond and IDR1tn IDR bond 1#4Company Structure Shareholding & Subsidiaries (30 Sept 2020) PT. SUNGAI BUDI (28.08%) PT. BUDI DELTA SWAKARYA (27.19%) PUBLIC (44.65%) OTHERS (0.1%) BSA (99.97%) Oil Palm Plantation BDP PT. TUNAS BARU LAMPUNG Tbk (IDX:TBLA) BNIL (99.99%) Oil Palm Plantation (99.99%) Sugar cane Plantation BNCW (99.90%) Oil Palm Plantation BTLA (99.71%) Oil Palm Plantation AKG (99.80%) Oil Palm ABM (99.90%) CPO Mill Plantation, Sugar Cane BPG (85.00%) Oil Palm Plantation SJP (99.90%) Oil Palm Plantation SUJ (99.23%) Oil Palm Plantation DGS (29.41%) Sugar Cane Plantation TBLA I (100%) Holding TB I (100%) Investment, Consultation BSA PT. Bumi Sentosa Abadi AKG PT. Adi Karya Gemilang DGS PT. Dinamika Graha Sarana Trade, BDP PT. Budi Dwiyasa Perkasa ABM PT. Agro Bumi Mas TBLA I TBLA International Pte Ltd BNIL PT. Bangun Nusa Indah Lampung BPG PT. Bumi Perkasa Gemilang TB I Tunas Baru Lampung Pte Ltd BNCW PT. Budi Nusa Cipta Wahana SJP PT. Solusi Jaya Perkasa BTLA PT. Bangun Tata Lampung Asri SUJ PT. Samora Usaha Jaya 2#5Business Model Revenue Drivers 1. PALM OIL Palm Plantation & Mill Upstream: CPO 2. SUGAR Cane Plantation & Mill Sugar Refinery GULA KRISTAL PUTIH GULA KRISTAL PUTIH GULA KRISTAL PUTIH ROSE BRAND ROSEBRAND ROSE BRAND Refinery (+Biodiesel) QUALITY PREMIUM ALITY QUALITY PREMIUMATY NETTO:50 KG SNI Downstream: Cooking oil, Biodiesel, Etc 3#6Business Model Revenue breakdown IDR/USD at Rp14,000 for illustration purpose 9M2020 - REVENUE Rp8.1tn / USD576mn 9M2020 "Others" include: CPO, Margarine, Soaps, Palm expeller, Glycerin, Biogas, Molases 3.1% 4.9% 4.5% 2.5% I SUGAR 30.6% ■COOKING OIL 26.1% 28.2% 12.3% BIODIESEL PKO 29.7% 58.0% STEARINE ■OTHERS FFA 9M2019 - REVENUE Rp6.3tn / USD453mn 9M2019 "Others" 2.5% include: CPO, 6.8% Margarine, Soaps, Palm expeller, Palm kernel, 6.5% Biogas, Molases 4.3% 26.3% ■SUGAR 20.6% COOKING OIL 31.9% BIODIESEL ■ РКО 52.4% STEARINE OTHERS 27.0% 21.7% ■FFA 4 □ DOMESTIC (IDR) DOMESTIC (USD Linked) EXPORT (USD) □ DOMESTIC (IDR) I DOMESTIC (USD Linked) EXPORT (USD)#7Palm Oil Plantation Estate Location & Size - 30 Sept 2020 PALEMBANG Total Area : 33,752Ha LAMPUNG Total Area : 35,511Ha Planted : 21,007 Ha Planted : 30,314Ha Mature : 13,922Ha Mature : 28,468Ha PONTIANAK Total Area Planted Mature TOTAL : 8,908Ha Total Area : 78,171Ha : 2,812Ha : 6,078Ha Included in "Total Area", plasma of 2,800 ha and in "Planted", plasma of 2,752 Ha Included in "Total Area", "Planted" & "Mature" Plasma of 9,792 Ha Planted Mature Note: Included in "Total Area", plasma of 12,544 ha; in "Planted", plasma of 12,472 Ha & in "Mature", plasma of 12,472Ha : 59,133Ha : 48,468Ha SUMATERA O Oil Palm Plantation Palembang Pontianak Lampung BORNEO JAVA 5#8Palm oil Plantation Age Profile Hectares - 30 Sept 2020 Lampung 7,085 19,659 3,851 Palembang 7,455 2,616 4,477 3,321 1,846 1,011 0 0-3 4-9 10-14 15-19 20+ 0-3 4-9 10-14 15-19 20+ Pontianak Total 2,057 1,734 4,021 10,665 9,229 19,659 15,953 3,627 0 0 0-3 4-9 10-14 15-19 20+ 0-3 4-9 10-14 15-19 20+ 6#9Production Facilities Palm Oil SUMATERA Biodiesel Pontianak BORNEO Location MT/annum MT/day Lampung 315,000 1,050 Palembang Lampung* Biodiesel Plant 450,000 1,500 Lampung CPO Mill TOTAL 765,000 2,550 PKO Mill East Java JAVA *Under construction (Exp completion 2Q2021) Soap Factory Palm Cooking Oil, Stearine PFAD Facility CPO Mills Margarine Factory FFA Esterification Plant Location MT/annum MT/hour Palm oil refinery Location Lampung 1,125,000 225 Location MT/annum MT/day Lampung* MT/annum 30,000 MT/day 100 Palembang 450,000 90 Lampung 510,000 1,700 *Under construction (Exp completion 1Q2021) Pontianak 225,000 45 Lampung* Soap 750,000 2,500 TOTAL 1,800,000 360 Location MT/annum MT/hour Palembang 300,000 1,000 Lampung 13,750 2.25 East Java 300,000 1,000 Palembang 13,750 2.25 PKO Mills TOTAL 1860,000 6,200 TOTAL 27,500 4.5 Location MT/annum MT/day *Under construction (Exp completion 1Q2021) Lampung Palembang 210,000 700 Margarine Refined Glycerin Plant 60,000 200 Location TOTAL 270,000 900 East Java MT/annum 36,000 MT/hour Location MT/annum MT/day 6 Lampung* 36,000 120 *Under construction (Exp completion 1Q2021) 7#10Production Facilities Oil Palm Mill (45 ton/hour) - Sukadana, Lampung STERILIZER LOADING RAMP STORAGE TANK CPO NO1 STORAGE TANK CPO NO:2 STORAGE TANK 8 PABRIK PKS 6#11Production Facilities New Oil Palm Mill (45 ton/hour) - Pontianak, West Kalimantan 9#12Consumer Products Palm Oil Medan Lubuk Linggau Bengkulu Lahat Serang Jakarta Bandung Jogjakarta Kediri Jember Palembang Lampung !Tangerang Cirebon Pontianak Banjarmasin Semarang Makassar Surabaya Bali Nation wide distribution 21 marketing offices 48,000 plus outlets FIKAS VITAMINA ROSE BRAND MINYAK GORENG Gurih, Lezat dan Sebal BERAT BERSIH:2000m BRAND NYAK GORENG A OSE BRAN ROSE BRAND MINYAK GORENG ROSE BRAND ROSE BRAND 10 FORTIFIKASI VITAMIN ROSE BRAND MINYAK ROSES P GORENG 2X PENVIRINGAN MINYAK GORENG 30 MAY 20 Gurih. Lezat dan Sehat EXPHILCE BERAT BERSIH SL BRAND KGORENG RAT BERSIH 18#13Palm Oil Production Highlights FFB Harvest Volume ('000 Ton) Nucleus Plasma ■3rd party purchase 1002 829 702 620 693 219 172 215 197 253 149 646 723 549 593 79 367 288 CPO 374,692 335,134 295,768 281,638 240,081 128,271 FY2015 FY2016 FY2017 FY2018 FY2019 9M2020 FY2015 FY2016 FY2017 FY2018 FY2019 9M2020 Cooking Oil Biodiesel (FAME) 264,180 271,255 I 223,090 215,872 208,048 206,024 I 84,267 59,565 137,818 281,755 236,144 I FY2015 FY2016 FY2017 FY2018 FY2019 9M2020 FY2016 FY2017 FY2018 FY2019 9M2020 L 11#14Sugar - Industry Dynamics 1 SUGAR MILLING CANE PLANTATION 2) SUGAR REFINING IMPORTED RAW SUGAR (Thailand, Brazil or Australia) NOTE: Governed by quota system through Ministry of Trade GULA KRISTAL PUTIH GULA KRISTAL PUTIH ROSE BRAND HALITY PREMIUMATY PREMIUM SUGAR MILL MILL WHITE SUGAR SUGAR REFINERY 12 GULA KRISTAL PUTIH ROSE BRAND NETTO:50 KG SNI REFINED SUGAR#15Integrated Sugar Production Plantation, Mill & Refinery PT. AKG Pakuan Ratu PT. BNIL Tulang Bawang Tebanggi Besar LAMPUNG 13 PT. TBL Sugar Cane Plantation Sugar Mill Sugar Refinery Way Lunik Port#16Sugar Refinery 900 TON/DAY 324,000 TON/ANNUM 14 fives cal J#17Sugar Refinery 900 TON/DAY 324,000 TON/ANNUM 15#18Sugar Mill 8,000 TCD (Ton Cane Day) 16#19Sugar Mill 8,000 TCD (Ton Cane Day) 17 2.5#20Sugar Cane Plantation Conversion of old oil palm to sugar cane estate 18#21Sugar - Industry Dynamics Indonesia's sugar production vs consumption Consumption Production 6.00 5.33 5.52 5.62 5.70 5.80 4.70 4.76 4.25 4.34 4.50 4.00 4.10 3.34 2.78 2.10 2.24 2.30 2.45 2.60 2.59 2.54 2.58 2.28 2.26 2.40 2.20 2.10 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 57.2 56.2 2016 2017 Source: Kontan, Kemendag, Agroindonesia SUGAR CONSUMPTION PER CAPITA 2015/2016 (KGS) 50.5 38.3 33.9 21.8 21.7 21.5 Malaysia Singapore Australia Thailand USA Philliphines Indonesia Vietnam 19 Source: USDA sugar consumption#22Sugar - Industry Dynamics Sugar Price (IDR/Kg) 9,700 9,100 8,900 9,100 9,100 8,100 8,100 8,250 7,000 6,350 6,032 6,161 5,986 5,681 5,350 5,064 4,779 4,885 4,502 4,342 4,458 4,441 4,656 4,634 4690 4,307 4,423 3,699 3,688 3,326 3,307 3,549 3,704 April 09 April 10 April 11 April 12 April 13 April 14 April 15 April 16 April 17 April 18 April 19 -Indonesia's sugar floor price (HPP Gula - Deperindag) Raw sugar (CSCE Sugar #11) -Refined sugar (London white sugar #5) Note: •Indonesia's floor price for sugar is set by the Ministry of Trade before the start of the milling season in April of each year. •Raw sugar price as quoted on the New York Coffee, Sugar and Cocoa Exchange (CSCE). •Refined sugar price as quoted on the LIFFE ⚫ For illustration purposes, Price for International raw and refined sugar were converted from USD/Pound to IDR/Kg based on the average USD: IDR exchange on the first week of April of each particular year: April 2009 = Rp11,200, April 2010 = Rp8,880; April 2011 = Rp8,460; April 2012 = Rp8,960; April 2013 = Rp9,500; April 2014 = Rp11,100, April 2015 = Rp12,900, April 2016 Rp13,182, April 2017 = Rp13,200, April 2018 = Rp14,000, April 2019 = = Rp14,000 = 20#23Sugar Cane Plantation Accelerated Growth 1,736 1,305 4,516 Cane Plantation (Ha) 7,929 12,105 10,640 10,455 12,878 12,493 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 9M2020 21 21#24Sales highlight 9M2020 9M2019 +2.4% 207,310 202,414 SALES VOLUME (TON) +39.7% 215,961 154,631 Sugar 9M2020 9M2019 +19.0% 11,899 +11.6% 243,691 218,386 Cooking oil FAME (Biodiesel) ASP (Rp/Kg) +18.4% 9,996 10,543 8,903 +12.8% 8,629 7,648 Sugar Cooking oil FAME (Biodiesel) 22#25P&L Highlight 4,504,294 REVENUE 6,609,403 6,290,429 6,344,579 8,065,544 OPERATING PROFIT 1,274,822 1,230,650 1,249,809 1,236,618 758,904 IIIII 9M2016 9M2017 9M2018 9M2019 9M2020 9M2016 9M2017 9M2018 9M2019 9M2020 EBITDA 1,815,075 1,688,003 1,585,244 1,466,361 1,042,643 NPAT Normalized NPAT (Ex unrealized forex loss/gain) 737,551 725,153 469,847 409,663 619,634 541,203 503,261 480,406 476,387 405,336 9M2016 9M2017 9M2018 9M2019 9M2020 9M2016 9M2017 9M2018 9M2019 9M2020 23#26Quarterly P&L (Figures in Rp. billions) Revenue Operating profit 2,765 2,922 496 469 2,366 2,365 2,288 2,325 2,379 426 442 444 398 410 425 418 394 409 2,141 2,173 2,223 2,189 370 2,007 1,862 1,949 2017 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 lill 188 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 EBITDA 601 600 589 593 595 604 616 523 528 534 524 530 506 246 203 203 NPAT 223 204 189 156 158 148 143 219 102 84 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 24#27EBITDA (Figures in Rp. billions) ANNUAL EBITDA 1,438 1,104 779 866 678 655 476 352 403 495 203 192 214 2,367 2,217 2,218 III FY18 Sugar mill commenced operation FY19 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Sugar refinery commenced Biodiesel plant commenced operation operation EBITDA 1,815 1,688 1,585 1,466 1,043 658 674 309 9M2013 9M2014 9M2015 9M2016 9M2017 9M2018 9M2019 9M2020 25#28Financial Summary Debt Coverage Ratios ■Net Debt Equity EBITDA 5,683,454 5,675,478 4,256,654 2,217,297 4,406,331 3,420,615 2,878,849 2,441,266 2,878,477 2,453,844 1,797,974 1,438,345 1,104,298 653,590 866,045 1.36 1.17 FY2013 FY2013 FY2014 FY2015 FY2016 8,572,702 7,520,693 7,243,295 4,783,616 5,599,823 5,362,924 2,367,323 2,217,728 2,420,100* FY2017 FY2018 FY2019 9M2020 * annualized Net Debt/Equity Net Debt/EBITDA 1.66 5.09 1.53 1.51 1.53 3.95 3.74 3.39 3.54 1.33 1.40 3.06 3.88 2.61 2.56 3.83 4.77 5.12 تعة EBITDA / Interest Exp 5.35 FY2014 massa mass mose mossi mzozo mesto mezzo FY2018 FY2019 9M2020 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 9M2020 26 3.50 3.19 2.98 στολ 9M2020 172013 42014 12615 m2016 12017 m2018 +2018 mezzo Στολι#29Contact Us For further information, please contact: Eric Tirtana Mobile : (+62) 858 8024 2328 Email : [email protected] Phone Fax : (+62 21) 521 3383 : (+62 21) 521 3392 www.tunasbarulampung.com Strengths Through Integration#30APPENDIX - Management Profile A D Board of Commisioner B C Board of Directors G H E F | A. SANTOSO WINATA President Commisioner Indonesian. Joined Sungai Budi Group in 1982. Mr. Winata is also the Vice Chairman of Sungai Budi Group and President Director of PT Budi Starch & Sweetener Tbk since 1987. He has been the President Commissioner of TBLA since 1990. B. OEY, ALBERT Commisioner Indonesian. Joined Sungai Budi Group since 1998. Mr. Oey is also a director at PT Budi Starch & Sweetener Tbk. He was appointed as Commissioner of TBLA in 1999. C. JUSTINUS ADITYA SIDHARTA Commisioner Indonesian. Joined the Company since 2016 as an Independent Commissioner. His past and current appointment include: Independent Commisioner at PT. Catur Sentosa Adiprana Tbk (2015 - Present), Managing Director at justinus a Sidharta CPA firm (2011 - present), Deputy Managing Director at Johan Malonda Astika & Partnerts (1998 - 2010).#31APPENDIX - Management Profile D. WIDARTO President Director Indonesian. Joined Sungai Budi Group in 1966 and appointed as Chairman of the group in 1985. Mr. Widarto has been in charged as President Director of TBLA since 1986. He is also currently the President Commissioner of PT Budi Starch & Sweetener Tbk. E. SUDARMO TASMIN Deputy President Director Indonesian. Obtained Master of Economic degree from Trisakti University in 1981. Started his career as auditor in Public Accountant Firm Santoso Reskoatmojo (1981-1982) before serving as internal auditor in PT. Inti Salim Corpora (1982-1984). Mr. Tasmin joined Sungai Budi Group in 1984 and was appointed as director in 1986. Mr. Tasmin was put in charge as Deputy President Director of TBLA in 1999. He also presently serves as Vice-President Director of PT Budi Starch & Sweetener Tbk. F. OEY, ALFRED Director Indonesian. Obtained Bachelor of Science in Business Administration Major Finance of Ohio State University, Colombus, USA in 2000. Joined Sungai Budi Group in 2000 and was appointed as the Director of TBLA in 2002. G. DJUNAEDI NUR Director Indonesian. Obtained Master of Economic degree from Trisakti University in 1978. Previously served as Manager of Administration and university instructor of Economics Faculty both at Trisakti University (1972-1982). He joined Sungai Budi Group in 1982 and was appointed as General Manager in a number of Sungai Budi group companies until 1990. He was appointed as Director of Sungai Budi Group since 1991, Commissioner of PT Budi Starch & Sweetener Tbk since 1994 and Director of TBLA since 1997. H. MAWARTI WONGSO Director Indonesian. Obtained Bachelor of Economics from Trisakti University, Jakarta. Started her career at Malonda & partners public accountant in 1990. Joined Sungai Budi group in 1994 as a financial controller. Ms Wongso previously served as corporate secretary at PT. Budi Starch & Sweetener Tbk up until 2015. I. MURUGAIAH PERIASAMY Director Malaysian. Joined TBLA Board of Director in 2018. Obtained executive master degree in plantation & estate management from e-Malaysia University. Started his career in Guthrie Malaysia in 1972 as senior conductor. Joined Sungai Budi in 1998 as Plantation Manager and holds various position within the group over the last 20 years. Last position hold was plantation general manager from 2015 - 2018. J. CHIN POH PENG Director Malaysian. Joined TBLA Board of Director in 2018. Obtained bachelor degree in agriculture from Malaysia Agriculture University. Worked for Guthrie Malaysia from 1979 to 1997 where last position hold was agronomist consultant. Joined Tropicrop group as CEO from 1997 up until 2010. Worked for PT. SMART Tbk as Head agronomy audit & advisory up until 2014. Joined Sungai Budi group in 2016 as Head of Plantations.#32APPENDIX - 9M2020 Newsletter PT. TUNAS BARU LAMPUNG, Tbk. (TBLA) Wisma Budi, 8th-gm Floor JI. H.R Rasuna Said Lot C-6, Jakarta Telp: (021) 5213383, Fax: (021) 5213332 9M2020 NEWSLETTER P&L (IDR Millions) Revenue Gross profit Operating profit NPAT Normalized NPAT* EBITDA Unrealized forex gain/(loss) 9M2020 8,065,544 9M2019 6,344,579 1,803,182 1,670,161 1,274,822 1,236,618 405,336 503,261 476,387 480,406 1,815,075 (71,051) 1,688,003 Change (%) 27.1% 8.0% 3.1% -19.5% -0.8% 7.5% 22,855 USD:IDR = Rp14,918 (30 Sept 2020), Rp14,174 (30 Sept 2019); "(Ex Unrealized forex gain/loss) Net margin EBITDA margin Net Debt to Equity Change (%) 20.4% 25.7% BS (IDR Millions) 30 Sept 2020 30 Sept 2019 Asset 19,984,233 16,593,130 Liability 14,384,410 11,439,805 Equity 5,599,823 5,153,325 8.7% Net interest bearing debt 8,572,702 7,567,963 Cash & cash equivalent** 1,632,133 231,667 13.3% 604.5% **included in cash & cash equivalent, restricted cash under "other current asset" Financial Ratios 9M2020 Gross margin 22.4% Operating margin 15.8% 5.0% 22.5% 1.53 9M2019 26.3% 19.5% 7.9% 26.6% 1.47 Normalized ROA 3.2% 3.9% Normalized ROE 11.3% 12.4% Sales Volume 9M2020 9M2019 Palm Cooking Oil 215,961 154,631 Change (%) 39.7% FAME (Biodiesel) 243,691 218,386 11.6% Sugar 207,310 202,414 PKO 21,350 32,131 Sales Price (OR per Kg/Liter for FAME 9M2020 9M2019 Change (%) Palm Cooking Oil 10,543 8,903 18.4% FAME (Biodiesel) 8,629 7,648 12.8% Sugar 11,899 9,996 19.0% PKO 9,565 8,487 12.70% 2.4% -33.6% FINANCIAL HIGHLIGHT Year-on-Year Revenue, EBITDA and Operating profit went up by 27.1%, 7.5% and 3.1% respectively. This growth was mainly contributed by higher sales volume and pricing of the 3 main products (cooking oil, biodiesel and sugar). NPAT went down by 19.5% compared to same period last year, mostly due to unrealized forex loss of Rp71bn (versus unrealized forex gain of Rp23bn in 9M2019). Basic staple's demand and pricing were slowly normalizing from the initial pandemic shock. Cooking oil ASP went up by 4.5% compared to last quarter, following higher cpo price. Though still up on annual basis, sugar ASP dropped by 15.5% from last quarter as demand subdued, and supply from domestic harvest and sufficient import were able to loosen market constraint. Biodiesel ASP was slightly down from last quarter with FAME pricing formula being revised twice this year. FAME conversion cost was temporarily adjusted down from $100 to $80 per ton between end of May to August 2020, citing pandemic related reasons. It was then re-adjusted up from $80 to $85 per ton effective September 2020. The later price revision showed the Government's willingness to hear and support producers during this difficult time, which is crucial in ensuring the continuation of Indonesia's B30 biodiesel program. Operating margin relatively stable, but still under some pressure from lower quarterly sugar and biodiesel price, and higher external cpo purchase. Strong cooking oil and biodiesel demand coupled with lower internal cpo production compelled the Company to maintain high external cpo utilization rate of 70:30 (compared to 50:50 in 9M2019) for downstream feedstock, so far this year. TBLA recorded 312K ton of external cpo purchase, up from 206k ton in 9M2019. Cash position was still maintained at higher level of Rp1.6tn at the end of September 2020, to anticipate tightening liquidity in the event of prolonged pandemic. Page 1 of 2#33APPENDIX - 9M2020 Newsletter PT. TUNAS BARU LAMPUNG, Tbk. (TBLA) Wisma Budi, 8th-g Floor JI. H.R Rasuna Said Lot C-6, Jakarta Telp: (021) 5213383, Fax: (021) 5213332 Production Summary 9M2020 NEWSLETTER 9M2020 9M2019 Change (%) Planted Area (Ha) 30 Sept 2020 30 Sept 2019 FFB Harvested Oil Palm FFB Nucleus (MT) 288,099 485,865 -40.7% Mature 48,468 45,614 FFB Plasma (MT) FFB 3rd Party (MT) FFB Yield - Nucleus (MT/Ha) 79,265 125,245 -36.7% Immature 10,669 11,453 253,381 517,442 -51.0% Total Oil Palm 59,133 57,067 8.0 14.3 Sugar Cane 12,878 11,362 Crude Palm Oil Production (MT) 128,271 220,371 -41.8% CPO Extraction Rate (OER) Palm Kernel Oil Production (MT) 21.7% 20.7% 15,501 19,861 -22.0% PKO Extraction Rate (KER) 42.3% 42.3% Cooking Oil (MT) FAME (KL) 206,024 156,614 236,144 202,456 31.5% 16.6% 140,507 231,515 FFB NUCLEUS HARVEST VOL (Ton) 174,412 155,726, 155,727 127,147 107,386 92,594 68,358 3018 4018 1019 2019 3019 4019 1020 2020 3020 PALM COOKING OIL SALES VOL (Ton) 74,418 73,929 74,935 67,097 62,832 60,895 54,964 48,283 45,453 3018 4018 1019 2019 3019 4019 1020 2020 3020 SUGAR SALES VOL (Ton) 77,750 78,582 71,744 70,204 71,478 60,732 64,790 61,629 67,099 3018 4018 1019 2019 3019 4019 1020 2020 3020 BIODIESEL SALES VOL (KL) 74,372 58,921 59,890 46,541 3018 95,224 84,054 77,115 70,829 71,622 4018 1019 2019 3019 4019 1020 2020 3020 PRODUCTION HIGHLIGHT The effect of last year's drought continues to plague FFB harvest around Sumatera. Both internal production and external purchase volume dropped considerably compared to last year as it gets harder to procure fruits in the region. Looking at historical and ongoing trend, harvest is expected to turn around towards the latter part of the year. Weak harvest consequently affected internal cpo production, which dropped by 41.8%, compared to 9M2019. This had to be supplemented with more external cpo purchase to ensure downstream demand was fulfilled. TBLA continued to boost cooking oil production as demand stayed robust amidst the ongoing pandemic. Cooking oil production was up by 31.5% compared to same period last year. FAME (Biodiesel) production up by 16.6% compared to 9M2019, as the B30 blending mandate came into effect this year. TBLA have sold 244k KL of FAME so far this year, with total FY2020 contracted volume of 341k KL to Pertamina. The Company is currently expanding biodiesel related infrastructures including new palm oil refinery and biodiesel plant in Lampung. Those facilities are scheduled for completion by the end of 1H2021. The Company has been allocated 180k ton of raw sugar import quota so far this year. Page 2 of 2#34APPENDIX 74 Global Production-Indo Production-Indo Export-Total Indo Consumption (Inc Biodiesel) Indo biodiesel 59 65 55 70 73 74 47.6 48 47 42 35.5 34.7 35 35 34.5 32.2 26.4 27 19 B30 15.6 12.2 9.6 9.6 10 7 6.6 3.6 3.4 4 1.6 B20 2015 2016 2017 2018 ! 2019F 2020F Source: GAPKI, Oilworld#35APPENDIX 16 14 INDONESIA: Booming Dom. Palm Oil Usage for biodiesel production other uses (primarily food) 12 10 8 6 4 2 0 2005 2007 2009 2011 2013 2015 2017 2019F Source: Thomas Mielke, ISTA Mielke GmbH, Oil World, Globoil India 26 Sep 2019