ASIANAGRI

2

World Vegetable Oil & Fats

Palm oil has a market share of 32% from total 17 major oil & fats in the world

•  Palm oil only utilizes 7% of land for vegetable oil cultivation

•  Palm oil is the most efficient vegetable oil, yielding 7-10x more than its peers

4,03

0,410,74 0,61

0,140,00

1,00

2,00

3,00

4,00

5,00

32% Palm

7% Palm

44% Soybean

11% Rapeseed

9% Sunflower

11% Cottonseed

18% Others

7% Land use among other vegetable oil

crop

25% Soybean

12% Rapeseed

8% Sunflower

2% Cottonseed

21% Others

32% Market share in

global and oil fats

Total area = 279,6 million Ha

Total prod = 204 million MT

World Palm Oil Industry

50,8 53,756,3 56,7

62,758,9

78,3

18,9 18,8 19,2 19,6 20 17,321,2

24,326,9 28,5 31,4 33,4 32,1

42,4

0

10

20

30

40

50

60

70

80

90

2011 2012 2013 2014 2015 2016 2020

PalmOilProduc-on(MnMT)

World

Malaysia

Indonesia

3

Amongthe17majoroil&fats,palmoilisthemostconsumedoil,withannualconsumpJonof58.9millionMTin2016.

In2016,Indonesiaproduces32.1millionMT–54%ofworldpalmoil,followedbyMalaysiaat17.3MnMT-29%

By2020,atleast78millionMTofpalmoilisrequired.

WithlimitedlandinMalaysia,Indonesiaisexpectedtodrivegrowthoftheindustry.

*Source:OilWorld2014,MOSTAvol.22Source:OilWorld2016

4

Palm Oil - Integral Part of Indonesia Economy

• 4thMostpopulouscountryintheworld• 5thLargestlaborforceintheworld

• TheLargestEconomyinSouthEastAsia• 10thLargestintheworld(PPP)

Popula-on:257Mn

GDP:$862Bn

Na-onalExport:$150Bn

No.1CPOProducer&Exporter

PalmOilExport:$17Bn

• Produces33MnMTperannum• 16%ofworld’svegetableoil• Export26MnMT

• LargestexportsectorinIndonesia

• 17%ofGDP

* Source : Oil World, World Bank, Ministry of Trade

*Source:WorldBank2015

41% of Indonesia

palm oil plantation is owned by

Smallholders

52%CompanyOwned

7%StatedOwned

* Source : Directorate General of Estate 2015

Business Overview

55

Assets Summary Mill Operations are Strategically Located

43k Ha (Owned) 8 CPO Mills, 2 KCPs 2 Biogas Plants

39k Ha (Owned) 35k Ha (Plasma) 8 CPO Mills 3 KCPs 3 Biogas Plants

18k Ha (Owned) 23k Ha (Plasma) 4 CPO Mills 1 KCP 2 Biogas Plant

•  160,000 Ha of Plantations Nucleus :100,000 Ha Plasma : 60,000 Ha (40% of area)

•  20 Palm Oil Mills Capacity : •  5 Mn MT FFB per annum •  1 Mn MT CPO per annum

•  R&D center and Seed Processing Unit Capacity : • 25 Mn seeds per annum

•  Planter School of Excellence •  7 Methane Capture Facilities (Biogas Plants) •  6 Kernel Crushing Plants

OneofthelargestRSPO&ISCCcerJfiedoilproducersintheworld.No.1volumeinsustainableoilfromsmallholdersplantaJons

The1stcompanywithRSPOcerJfiedIndependentSmallholders

Production Overview

Annual vol: ± 1 Mn MT CPO

Milestone

1979

PioneeredPlasmaschemesinRiau&Jambi

EstablishedstateoftheartR&Dcentre

Successfullydevelopedandhandover1stPlasmaestate

ImplementZEROBURNduringlandpreparaJonDxPProgeny

tesJngtoproducehighyieldingseeds

EstablishedPlantersSchoolofExcellence

SetupseedproducingfaciliJes-OPRS

1983 1987 1989

1991

1994

1996200220052006

2007

2012

Acquired8,000HalandbankinnorthSumatra

1stPalmOilMillinGunungMelayu

AsianAgribecamememberofRSPO

SetupTissueCulturelabtocloneoilpalms

2013

BiggestISCC&RSPOcerJfied

smallholdersinIndonesia

Achievebeyond1MnMTCPOVol

2014 2015&2016

7unitsofBiogasplant&6KCPs;13plannedAchieve50%yield

improvementinreplanJngareas KickStartPlasma

ReplanJng

6

Focus on Sustainability

AA’s Journey to Sustainability

2006 Became member of

RSPO

2014 All nucleus & plasma are

ISCC certified

Asian Agri’s Commitment

§  Protection of High Conservation Value (HCV) & High Carbon Stock (HCS) areas

§  Protection of peat regardless of depth

§  Drive positive socio-economy impact for people and communities

Immediate Moratorium: • No forest clearance and new peat land development

• Traceability of FFB suppliers by 2016

2010 - 2011 1st RSPO

& ISCC Certification Nucleus & Plasma

2012 Awarded Largest

Certified Smallholders

2017 100% RSPO & ISPO certified

7

Adopt Founder’s Philosophy to Support Plasma Smallholders

8

840%BasedonFounder’sphilosophy,AsianAgribecamePIONEERinsupporJnggovt.PIR-TransprogramthroughPlasmaSmallholders

programin1987oftotalASIANAGRIManagedplanta-onarea.

Partnershipfor60,000HaofPlasmaSmallholdersland.

Oneofthelargestinthepalmoilindustry.

Goodfor

Community

Goodfor

Country

Goodfor

Company

Goodfor

Climate

Goodfor

Customer

Key Success Factors

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Take care of smallholders plantation area Planting with best quality seeds and management practices

Established strong + Dedicated team 200 Personnel to engage Smallholders daily on Agronomic Practices including R&D Supports

Daily Engagement and Continuous Empowerment Training by Experienced Operation Personnel & Industry Experts

Fair and on-time purchase of production Based on government regulated price. Incentive reward for good quality.

Formation of Smallholders Co-operatives To represent & assist smallholders daily coordination and needs

3%16%

24%4%

6%10%3%1.5%

<1%

6.5%11%

5.5%

4.5% 2%<1%

Palm Oil: A Key Economic & Income Growth Driver

1.6%ofIndonesiaGDP

11%ofIndonesiaexport

4.5mnemployment

2.6xMulJplierforjobs

Source:IndonesiaMinistryofIndustry Source:PASPI(PalmOilAgribusinessStrategicPolicyInsJtute)2014

Allevia-ngPovertyAmongLocalCommunityDrivingEconomicGrowth&JobCrea-on

Source:SecretariatofDirectorateGeneralofEstates/Ditjenbun,Indonesia,2014

~69%OfPalmOilProduc-onIsBasedInSumatra

EconomicGrowth

Jobs&Employment

AnnualHouseholdIncome,2014(inUSDpercapita)

PovertyLine:$350

$3,600

$2,800

$800

PlasmaFarmers

IndependentFarmers

NonPalmOilFarmers

Sumatra-69%

Kalimantan-28%

Others-3%

AAPlasmaFarmers

Past Present

$6,000

10

TotalProduc-on

33milliontonsofCPOandCPKO–No.1intheworld

Where We Are Now

11

Successfulpartnershipinmanaging60,000Haof

plasmasmallholderslands

100%ISCCCerJfiedin201486%RSPOCerJfiedin2015

PioneerinISPOCerJficaJonforindependentsmallholdersinApr2017

ASIANAGRIconductsCer-fiedOilPremiumSharingwithPlasmaSmallholders

30Years

Smallholdersengagement&empowerment

SmallholdersCo-operaJves,withaverageassetvalueofUSD1.5Mil

eachco-operaJve

30,000 100% 72

ISCCCer'fied,PlasmaScheme29,000Smallholders(60,000

Ha)

ISCC Certification for Smallholders

12

NextPoten'alTarget:1.042IndependentSmallholdersinRiau

and10,000Independent

SmallholdersinJambi

DedicatedSmallholderMgtTeam

Tofacilitateandprovidegoodagricultural

knowledgeandtechnicalskillsinoilpalmmanagement

AlsoinvolveinISCCSustainabilityJourney(SelfDeclara-onPrepara-on,

GreenHouseGasCalcula-on)

Smallholders Partnerships as A Business Model for Sustainability and Growth

13

• Kick start 2nd generation Plasma with

Superior Seeds and Agronomy Practices

in 2015

• 100% ISCC Certification by 2014

• 100% RSPO Certification by 2017

• 100% full traceability of supply chain by 2016

PlasmaSmallholders

•  Leverage on plasma partnership experiences &

success stories to embrace Independent

Smallholders into Plasma Smallholders

Program. •  By being part of the program, Independent

Smallholders will achieve higher and

sustainable production from better agronomic

practices, with guaranteed market uptake and

fair price

IndependentSmallholders

1st Independent Smallholder Program to be RSPO Certified

for sustainable production in 2013

1st independent smallholders association to be certified by

Indonesian Sustainable Palm Oil Program in 2017

Smallholders Replanting Program

14

Kicked off the oil palm replanting program

with smallholders and government

officials in a replanting ceremony on

April 20th, 2016.

Where We are Heading - 1:1 Partnership Commitment

15

Benefits to Smallholders

Thefirstindependentsmallholderempowermentprojectin2012

NegeriLama•  Thefirstindependentsmallholder

associaJonthatreceivedRSPOcerJficate;•  Growingfrom763hato1,048ha;

•  Involving501families

Amanah

Before Ader Item Unit Before Ader9 12 Yield Ha/Year 18 21

1100 1310 Price Rp/Kg 1060 1378

325 30 LogisJc Rp/Kg 92 48

0.4 1.0 Income Mio/Mo/Ha 1.2 1.9

16

17

Smallholder Journey Towards Sustainability

Maximized FFB Yield Potential

Understanding Sustainability Perspective

Dis-Incentive Un-Sustainable

Practices

Sustainable FFB

The Journey for Smallholders to move toward sustainability requires support and assistance in multi dimensional perspectives

It starts from understanding the needs, engagement to build commitment and loyalty, education agriculture knowledge, facilitation of access to many aspects (from Off-taking the FFB, Fertilizer to Financing).

The idea of Sustainability would only be making sense to smallholders after certain level Welfare & Livelihood has been reached.

Intensification - Better Management through Assistance Program - Better Genetic through Planting

Optimized Income & Livelihood

Improved Productivity

Community Services through CSR Programs

18

ThankYou