1

Kencana Agri Limited

3Q 2015

Performance Review

2

Overview of the Group’s Operations

Location :

Sumatra, Kalimantan, Sulawesi

Palm Oil Mills : 4

Total Capacity : 230 MT/hour

Kernel Crushing Plants : 2

Total Capacity : 435 MT/day

Main products:

CPO (Crude Palm Oil)

CPKO (Crude Palm Kernel Oil)

PKC (Palm Kernel Cake)

Products

Plantation

and

Processing

Supporting

Business

Biomass Power Plant - 2

Total Capacity : 13.5 MW Port and Bulking Terminal

Total capacity :

120,500 MT

Logistics

Vessels : 6

Total Capacity :

13,800 MT

Renewable by-products:

Empty Fruit Bunches, Liquid

Waste, Kernel Shells, Fibre

3

Significant Land Bank for Future Planting

Total Land Bank 193,574 ha* (Nucleus + Plasma)

65%

10% Immature

13% Prime Mature

12% Young Mature

Unplanted Area

(65%)

Planted Area

(35%)

Land Bank

(ha) Planted Area

(ha)

Unplanted Area

(ha) Total

(ha)

% % %

Nucleus

Plasma

Total

53,884

13,721

67,605

31

70

35

120,060

5,909

125,969

173,944

19,630

193,574

90

10

100

* Subject to final measurement

69

30

65

4

Where We Are…

5

Production Highlights 3Q 2015 3Q 2014 Change 9M2015 9M 2014 Change

FFB Production (MT) 174,196 162,384 +7.3% 511,728 503,045 +1.7%

- Nucleus 135,678 127,612 +6.3% 402,088 394,868 +1.8%

- Plasma 38,518 34,772 +2.6% 109,640 108,177 +1.4%

FFB Processed (MT) 179,096 169,002 +6.0% 518,176 492,731 +5.2%

- Nucleus 134,341 126,491 +6.2% 390,924 384,563 +1.7%

- Plasma 38,288 34,772 +10.1% 108,718 108,168 +0.5%

- External Parties 6,467 7,739 -16.4% 18,534 19,459 -4.8%

Oil Extraction rates (%)

- CPO 20.6% 21.1% -0.5pp 20.7% 21.0% -0.3pp

- CPKO 43.2% 43.3% -0.1pp 43.3% 43.3% --

Oil Production (MT)

- CPO (MT) 36,877 35,711 +3.3% 107,436 107,369 0.1%

- CPKO (MT) 1,142 2,252 -49.3% 3,807 8,947 -57.5%

FFB Yield (MT/ha) - Nucleus 3.7 4.2 -11.9% 7.2 8.8 -18.2%

Oil Yield (MT/ha) 0.8 0.9 -11.1% 2.2 2.7 -18.5%

Production Highlights

Operational Performance

6

Operational Performance

Phase 1

Oil Palm cultivation started in 1996

in Bangka island, Sumatra (1,215

ha). This was followed by the 2nd

planting in 1998 in South

Kalimantan.

Phase 2

Started in 2004 in South and East

Kalimantan with rapid planting

programme. Total planted area

increased by about 5 times from

phase 1

Phase 3

Started in 2011 in Sulawesi.

Phase 2 Phase 1 Phase 3

Development of Kencana’s planted area

(Nucleus + Plasma)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 9M 2015

Plasma

Nucleus

7

AGE PROFILE

Prime Mature Immature Total % %

Nucleus

Plasma

Total

18,977

6,249

25,226

17,016

2,735

19,751

Young Mature %

17,891

4,737

22,628

53,884

13,721

67,605

Age distribution of oil palms (nucleus)

% o

f N

ucle

us P

lante

d

Weighted

Average Age

= 7.4 Years

Operational Performance

65% OF IMMATURE AND YOUNG MATURE PALMS (NUCLEUS) WILL ENTER THE PRIME MATURE PHASE,

AND WILL DRIVE THE POTENTIAL OF STRONG PRODUCTION GROWTH IN THE NEAR FUTURE.

32

20

29

33

34

34

35

46

37

0%

3%

6%

9%

12%

15%

19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

8

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

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

• 2000 – 2014 CAGR = 26.1%

• 2015 onward – expect steady increase in production

MT

FFB Production Trend (Nucleus)

Operational Performance

9

Financial Highlights

* Others include sales of Kernel, Cake, FFB, income from logistics and management services rendered.

3Q 2015 3Q 2014 Change 9M 2015 9M 2014 Change

Sales Volume (MT)

- CPO 55,360 49,814 +11.1% 158,058 159,861 -1.1%

- CPKO 1,650 3,500 -52.9% 4,650 9,000 -48.3%

Sales Revenue (US$’000)

- CPO 26,732 32,857 -18.6% 85,493 117,093 -30.2%

- CPKO 1,041 3,621 -71.3% 3,581 9,417 -62.0%

- OTHERS* 2,742 4,199 -34.7% 9,206 14,020 -34.3%

Average Selling Price (US$)

- CPO 483 660 -26.8% 541 732 -26.1%

- CPKO 631 1,035 -39.0% 770 1,046 -26.4%

Financial Highlights

Financial Performance

10

Financial Performance

3Q 2015 3Q 2014 Change 9M 2015 9M 2014 Change

Revenue 30,515 40,677 -25.0% 98,280 140,530 -32.1%

Gross profit 3,254 9,011 -64.0% 14,723 35,594 -56.9%

Operating (loss)/profit (15,008) 3,264 n/m (13,014) 24,046 -90.4%

(Loss)/Profit before tax (18,682) 1,216 n/m (24,835) 15,372 n/m

Net (loss)/profit for the period (15,247) 957 n/m (20,452) 11,639 n/m

EBITDA (12,561) 4,849 n/m (13,232) 25,490 n/m

Gross margin (%) 10.7 22.2 -11.5pp 15.0 25.3 -10.3pp

Net profit margin (%) -50.0 2.4 n/m -20.8 8.3 n/m

EBITA margin (%) -41.2 11.9 n/m -13.5 18.1 n/m

Income Statement Highlights

(US$’000)

n/m: not meaningful

11

As at

30 Sep 2015

As at

31 Dec 2014 Change

Current assets 43,665 53,570 -18.5%

Non-current assets 413,767 457,425 -9.5%

Total assets 457,432 510,995 -10.5%

Current liabilities 92,057 97,981 -6.1%

Non-current liabilities 234,910 240,279 -2.2%

Total liabilities 326,967 338,260 -3.3%

Shareholders’ equity 130,465 172,735 -24.5%

Net debt / equity ratio (%) 179.7 131.4 +48.3pp

Net debt / total assets (%) 51.2 44.4 +6.8pp

Net debt / EBITDA (x) n/m 16.8 n/m

EBITDA / interest expense (x) n/m 4.0 n/m

Statement of Financial Position Highlights

(US$’000)

n/m: not meaningful

Financial Performance

12

n/m: not meaningful

9MH 2015 9M 2014 Change

Cash at beginning of period 14,124 14,208 -0.1%

Net cash from operating activities 6,253 22,080 -71.7%

Net cash used in investing activities (15,222) (30,305) -49.8%

Net cash from financing activities 1,861 4,805 -61.3%

Net decrease in cash (7,108) (3,420) +107.8%

Cash at end of period 7,016 10,788 -35.0%

Statement of Cash Flows Highlights

(US$’000)

Financial Performance

13

This document has not been independently verified and has been prepared for informational purposes only. No representation or warranty express or imply is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. It is not the intention to provide, and you may not rely on this document as providing, a complete or comprehensive analysis of the company’s financial or trading position or prospects. The information and opinions contained in these materials are provided as at the date of this presentation and are subject to change without notice. None of Kencana Agri Limited or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this document or its contents.

Disclaimer

Thank You