News » LOW CYCLE  
Monday, 04 May 2015

Jakarta, 30 April 2015 – PT Sampoerna Agro Tbk. and subsidiaries (“Sampoerna Agro" or “the
Company”) released its unaudited financial and operational results for the period ending in 31 March
2015 (“1Q15”).

FFB production volume in the 1Q15 managed to climb slightly, from 265,358 tons within the same
period in 2014 (“1Q14”) to reach 265,385 tons this year. The increase was due to greater contribution
from nucleus estates. Nucleus estates booked 172,008 tons of FFB production within the period, or 5%
rise over 1Q14 figure. On the other hand, harvest from external parties, which mainly consisted of
plasma under guidance, booked 8% lower volumes in 1Q15 versus 1Q14.

Undoubtedly, the low cycle that began in fourth quarter 2014 (“4Q14”), had continued into 1Q15 as well
because FFB production within the quarter dropped 24% further. The quarter-on-quarter decline in FFB
harvest was primarily due to falling external contribution which plunged 44% while nucleus volumes
declined only 5%.

In revenue terms, the Company booked Rp526.87 billion in 1Q15, or 19% lower than 1Q14 which was
triggered by lower sales contribution from its mainstay product. Within the period, revenue from CPO
contributed 83% to total revenue and reached Rp434.11 billion, or 19% lower than 1Q14.

The year-on-year decline in CPO sales contribution was due to 12% lower selling price and 7% less
volume. Average selling price for the period decreased to Rp7,908 per kg while sales volume was
reduced to 55,111 tons. The fall in selling price trailed its international price benchmark in Malaysia
which also retreated to MYR2,263 per ton in 1Q15, or 16% lower than the same period last year.
On a positive note, oil extraction rates had rose to 22.3% in 1Q15, higher than last year’s achievement of
21.6%. As a result, Sampoerna Agro managed to produce 58,289 tons of CPO in 1Q15, or 9% higher than
the same period last year.

In conclusion, the Company had experienced low cycle within 1Q15 as its FFB production volume
continued its downtrend that started in 4Q14. Nonetheless, greater contributions from nucleus estates
and Kalimantan region had successfully subdued the fluctuation, as illustrated in the two bar charts on
page 2 of this newsletter. These indicators were encouraging as part of the Company strategy towards
minimizing its fluctuations.

Management believed that production volumes will only get stronger in coming months given our
attractive age profile and continuous improvement programs in estate management. We anticipated
bigger contribution in the upcoming quarters.