DSNG 1Q15 Presentation

PT DSN Tbk 2015 Q1 Results Update
DSN Group is a growing, and green, producer of palm oil and wood products
sold into global markets. DSN plantation operations are among the most
productive in the sector.
he DSN Group was originally established as a wood products
manufacturer. We identiied an opportunity to expand into the
plantation sector in 1997, building upon our established
relationships within the local communities. Both of these
business segments are showing growth, but the palm oil business
is growing, and will continue to grow, at a higher rate.
Palm oil accounted for 66% of total revenue in Q1 2015, down
from 72% in 2014, driven by lower CPO average selling prices.
Re ve nue (Rp b n)

Our history of expansion has accelerated in recent years, with the
acquisition of eight new oil palm estates since 2010.
We also took a controlling interest in Tanjung Kreasi Parquet
Industry, a manufacturer of globally branded engineered looring
in 2012.
hese subsidiaries provide long-term opportunities for expansion
in both of our core businesses.


Re ve nue

5,000

Q 1 '15

2014

2013

2012

2011

2010

FY

4,000


Palm O il

66%

72%

64%

59%

55%

55%

3,000

Wood Prod ucts

34%


28%

36%

41%

45%

45%

2,000

Q1

1,000
2011

2012


2013

2014

2015

EBITDA (Rp b n)
1,500

FY
1,000
500

Q1
2011

2012

2013


2014

2015

FFB Prod uction ('000 tons)
1,500

FY

1,250
1,000
750
500

Q1

250
0
2011


2012

2013

2014

2015

CPO p e r He ctare (tons)
8.0

FY

6.0
4.0
2.0

Q1
0.0
2011


2012

2013

2014

2015

Our estates are clustered across East, West and Central
Kalimantan, with planting to date concentrated in the East
Total & Plante d He ctare s b y Cluste r
31 March 2015

Pap ua
North
Kalimantan

We st
Kalimantan


East
Ce ntral
Kalimantan
Kalimantan

0

10

20

30

Planted / Unplanted

40

50


60

= 5,000ha

O ne East Kalimantan cluste r e ncomp asse s 88% of our mature are a
Land Are a ('000 Ha)
Estate

Ye ar
Acq uire d

Province

Total

Plante d

Mature

Land Rig hts Status

Availab le

HGU

Panitia

Ijin

Total

Mature

B

Lokasi

Are a

Are a*




DBL

2013

Pap ua

16.7

-

-

16.7

DIL

2009

N. Kal.

7.2

2.7

-

4.5

SWA

2001

E. Kal.

16.9

15.3

15.3

1.6

DAN

1997

E. Kal.

10.0

9.0

9.0

1.0

DIN

1997

E. Kal.

9.8

8.7

8.7

1.0

DWT

2007

E. Kal.

13.6

10.2

8.0

3.5

KPS

2011

E. Kal.

6.2

5.8

2.1

0.4

MAL

2012

W. Kal.

15.0

-

-

15.0

RUT

2012

W. Kal.

12.5

-

-

12.5

KAP

2010

W. Kal.

14.9

1.6

-

13.3

PSA

2010

W. Kal.

10.6

0.6

-

10.0

DPS

2010

W. Kal.

5.6

0.9

-

4.7



PUL

2012

E. Kal.

17.0

0.2

-

16.8



PWP

2004

C. Kal.

15.2

8.5

7.6

6.7

171.1

63.5

50.7

107.6

Total
























38%

Ave rag e Ag e (Yrs)

14%

48%

Yie ld
Q 1 '15
(t/ha)

-

-

-

2.1

-

-

14.7

14.7

6.3

8.9

8.9

5.2

8.9

8.9

6.0

5.2

6.0

4.3

3.6

6.4

4.2

-

-

-

-

-

-

1.9

4.0

-

1.6

-

-

1.1

-

-

1.0

-

-

5.3

5.7

4.5

8.1

9.6

5.4

* As of ye ar-e nd 2015

2

PT Dharma Satya Nusantara Tb k (DSNG.JK)

Our plantations have a young age profile and will deliver
productivity growth in coming years
Annual Planting Sche d ule

Ave rag e Ag e

12

12

Plasma Plan

10

All
Mature

Nucleus Plan

10

Plasma
H2 Planting

8

H1 Planting

6

6

4

4

2

2

Ye ars

Ha (‘000)

8

0

0
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17
Cum. Are a

1.2

4.1

4.9

6.1

6.6

8.8

8.8

11.9

15.2

19.9

Plasma %

We added 707 hectares of nucleus in Q1 2015, out of a total of
1,078 hectares planted during the quarter.
We intend to maintain the current pace of expansion through
2017, with roughly 9,000 hectares planted each year, including
nucleus and plasma.
In total, our 63,486 hectares of planted nucleus are an average
age of 8.1 years in Q1, dropping to 7.4 by the end of 2015. By
2017, our average age is expected to increase to 8.1 years.
As our plantations age, we intend to implement a planting
schedule suicient to maintain a favorable long-term maturity
proile. In general, our cost to maturity for new planting is
roughly $5,000 to $5,500 per hectare.
Cap ital Exp e nd iture s

2014

2013

2012

2011

2010

Immature Plantations

401

335

294

353

224

Construct. in Prog re ss

348

182

482

282

128

67

146

131

308

133

816

663

907

942

485

O the rs
Total

Our capital expenditures are
expected to be between $60
million and $70 million in each
of the next few years in support
of our planting program and mill
construction.

23.5

31.1

36.1

42.6

46.9

49.4

52.1

57.9

62.8

69.6

75.8

82.0

6%

6%

8%

9%

17%

21%

28%

29%

31%

33%

Our strong commitment to our plasma holders is one critical
element in the success of DSN’s palm oil activities, generally
easing our acquisition of land and title conversion, and
minimizing the prospect of local disturbances or social unrest.
Our BoT model encompasses 75% of our plasma areas, and
results in higher FFB yields and higher revenues for our plasma
cooperatives. DSN beneits from the milling margin and gains
assurance that the loans to plasma holders can be repaid.
5% of total FFB revenues are retained by DSN as a
management fee. Of the remainder, 30% is paid to the plasma
holder, while 70% services bank loans and funds extended by
DSN for upkeep and maintenance of the estate prior to
breaking even.
DSN typically funds the development of plasma estates
through bank loans with repayment schedules comprising a 4year grace period and 6-year repayment.
We had planted 17,287 hectares of plasma by the end of 2014.
In total, 6,371 hectares had reached maturity and produced
118,865 tons of FFB for the full year.
Mid -Ye ar vs. Ye ar-End Stand ard
In 2011, the Comp any ad op te d a Mid -Ye ar Stand ard (MYS) ap p roach
to d e te rmining the ag e of our p lantations for accounting p urp ose s.
Using the MYS, tre e s p lante d in H2 of the p re vious ye ar and H1 of the
curre nt ye ar will b e consid e re d 1-ye ar old at the close of the ye ar – a
re asonab le e stimate of the ave rag e amount of time the se tre e s have
b e e n in the g round .
All of the d ata p re se nte d within our financial re p orts and this
p re se ntation make use of the MYS from 2011 to the p re se nt.

Q 1 2015 Re sults Up d ate

3

Our planting schedule through 2016 implies an average
10% annual growth in FFB to 2 million tons in 2020
FFB Yie ld (t/ha)

35

Ag e Profile (‘000 ha)

Immature

Young Mature

Prime Mature

14

O ld Mature

30

12

25

10

20

8

Class I
Class II
Class III

15

6

10

4

5

2

0

0
0

2

4

6

8

10

12

= 500 ha

14

16

18

Ag e of Tre e s

Plante d He ctare s (000's)

20

22

Growth in Mature Planting and Yie ldd Proje ctions
Stand ard FFB/ha

Mature Are a
Ye ar-End

Old M ature
75
60

Prime
M ature

45
30

Young
M ature

15
Immature
0
'11

'12

'13

26

Source : Ind one sian Palm O il Re se arch Institute

90

'10

24

'14

'15

'16

'17

'18

'19

'20

'000 ha

% Δ Avg Ag e

Class II Class III



2010

26.7

7.5

20.9

2011

32.3

21

7.7

21.5

18.5
19.0

3

2012

38.4

19

8.0

21.9

19.5

3

2013

43.6

14

8.4

22.8

20.3

4

2014

48.0

10

8.9

23.7

21.2

4

2015

50.7

6

9.6

25.0

22.4

5

2016

54.8

8

10.1

25.2

22.7

1

2017

60.0

9

10.5

25.1

22.6

0

2018

65.5

9

10.8

25.0

22.5

-1

2019

72.1

10

11.1

24.6

22.1

-2

2020

78.3

9

11.5

24.5

22.0

-1

Assuming no p lanting afte r 2017

FFB Volume (mn t)
2.0

A standard yield curve derived from our plantation
age proile, rather than simply our average age, helps
to establish realistic medium-term yield
expectations.

= DSN Annual Nucle us Yie ld
Class II
1.5

hese standards suggest average yields could
continue to increase through 2016, barring external
environmental factors. At the same time, our mature
plantation area will increase from 48,038 hectares in
2014 to 54,721 hectares in 2016 (25.4%), with
subsequent annual growth rates of roughly 10%
through 2020, with over 78,000 mature hectares at
that time and a standard Class II soil yield of 1.92
million tons FFB.

1.0
Class III
0.5

0.0
'10

4

'11

'12

'13

'14

'15

'16

'17

'18

'19

'20

PT Dharma Satya Nusantara Tb k (DSNG.JK)

Our target is to maintain lab standard FFB yields on a
commercial scale within each of our estates
FFB Yie ld (t/ha, 2010-2014)

Young Mature

35

Prime Mature

5.4

30

tons FFB per
hectare in Q1
2015

25

20

15

9.6
years average
age of nucleus
mature area

10

5

0

4

6

8
10
Ave rag e Ag e (mature ha only)

Our performance is driven by a disciplined
approach to standard agronomic practices, ranging
from selecting the best seeds, to formulating
multiple unique fertilizer blends, to the use of cover
crops to retain soil and natural predators to control
mice and caterpillars, thereby allowing us to
minimize the use of harmful pesticides.

14

the initiation of production in CPO Mill 6 in Q1.
In aggregate, FFB processed fell by 6% to 351
thousand tons.
Prod uction Pe rformance - Estate s
Pe riod

Volume



274
279

-2
-

5.4
5.8

1,258
1,153
977
738

9
18
32
38

26.2
26.4
25.5
22.4

25
25

4
-

4.5
4.4

119
88
43
3

35
104
1,184
-

21.2
17.9
10.9
4.4

52
71

-26
-

2014
2013
2012
2011

267
141
65
40

90
115
64
55

Total FFB
Proce sse d

Q 1 2015
Q 1 2014

351
374

-6
-

('000 t)

2014
2013
2012
2011

1,635
1,381
1,052
767

18
31
37
41

FFB, Nucle us Q 1 2015
('000 t, t/ha)
Q 1 2014

In Q1 ‘15, DSN produced 274 thousand tons FFB
from nucleus estates, with an additional 25
thousand tons from plasma operations. In
aggregate, FFB output decreased by 1.4% from Q1
‘14, with a nucleus yield of 5.4 tons per hectare
versus 5.8 tons in the preceding year.

2014
2013
2012
2011
FFB, Plasma* Q 1 2015
Q 1 2014

('000 t, t/ha)

3rd party purchases were reduced by 19% despite

2014
2013
2012
2011

Total Nucle us FFB Prod uction
400
FFB ('000 tons)

12

Yie ld (t/ha)

years average
age of plasma
mature area

299
thousand tons
FFB produced
in Q1 ‘15

300

Exte rnal FFB Q 1 2015
Q 1 2014

200

('000 t)

100
0
Q1

Q2

Q3

Q4

150
FFB ('000 tons)

6.9

100

’15
‘14
‘13
‘12
‘11

50
0

Jan

Mar

May

Jul

Se p

Q 1 2015 Re sults Up d ate

Nov

1.9%
drop in nucleus
FFB

*Fully O p e rate d O nly

5

Our most developed cluster - with 5 estates, 5 CPO M ills and
56,000 ha - is nearly the size of Singapore

107,580
ha available
land bank

63,486
ha planted
nucleus area

We are a member of the Roundtable
on Sustainable Palm Oil (RSPO), and
strive to comply with global RSPO
and the Indonesian Sustainable Palm
Oil (“ISPO”) principles.

In total, our nucleus estates incorporate 63,486 planted hectares,
of which 50,732 are mature. Just over 77% of our planted area,
in ive estates, is located in a single contiguous area in East
Kalimantan. hese 49,037 planted hectares encompass an area
nearly the size of Singapore.
Five out of our six existing palm oil mills are located within these
estates, and we expect to complete the construction of one
additional CPO mill in 2016. he proximity of the CPO mills to
the fruit allows us to establish an 8-hour standard for harvest-tomill, resulting in minimal spoilage of FFB and lower FFA.

We have received RSPO and ISPO
certiication for our SWA, DAN and
DIN palm oil plantations along with
their respective mills, and have
completed the RSPO and ISPO audit
process in December 2013 for all of
our other mills and their respective
estates. We have also received ISCC
certiication, facilitating sales of our
CPO for European biofuel use.

Mill capacity will accommodate annual peak output from a
10,000 ha mature estate. Mills servicing rapidly developing
estates (such as Mill 5 in PWP) may rely on signiicant external
FFB purchases.
At a cost of roughly $18 - $20 million per mill, this adds
approximately $2,000 to development costs per hectare.

We are also committed to protecting
our environment. We have set aside
6,600 hectares of land, or an area
roughly equivalent to 10% of our total
planted area, for conservation
purposes.

CPO mill cap acity d e sig ne d for p e ak p rod uction months

50,732

ha
mature area

Tons/

Max.

Ye ar

Location Estate

Hr

Util*

RSPO

Mill 1

2002

E. Kal.

SWA

90

55%

Ce rt. Ce rt. Ce rt.

Mill 2

2009

E. Kal.

DAN

60

118%

Ce rt. Ce rt. Ce rt.

Mill 3

2010

E. Kal.

DIN

60

130%

Ce rt. Ce rt. Ce rt.

Mill 4

2011

E. Kal.

SWA

60

126%

Aud .

Mill 5

2011

C. Kal.

PWP

60

103%

Mill 6

2015

E. Kal.

DWT

60

Mill 7

2016

E. Kal.

KPS

60

In Prog re ss

Total Cap acity

ISPO

ISCC

Ce rt.

450
*Monthly, 2014

DWT

Mill 6

2 million
tons/ year
CPO mill
capacity

Mill 3

Mill 2

Mill 7

DAN
DIN
SWA

KPS

Mill 4

Mill 1

RSPO &
ISCC
certified

Existing CPO M ills

Trans-East Kal. Road

Planned CPO M ills

6

PT Dharma Satya Nusantara Tb k (DSNG.JK)

Our 6 mills achieved an aggregate OER of 22.3% in Q1, as
well as an FFA level of 2.81%
Prod uction Pe rformance - Mills
Pe riod

CPO
('000t, O ER)

PK
('000 t, KER)

PKO
('000 t, PKO ER)

Volume



78
88

-11
-

22.3
23.6

2.81
2.87

2014
2013
2012
2011

391
336
257
189

16
31
36
41

23.9
24.3
24.4
24.6

2.93
2.65
2.67
2.55

Q 1 2015
Q 1 2014

10.9
11.0

-1
-

3.1
2.9

2014
2013
2012
2011

53.3
43.3
35.7
23.9

23
21
50
50

3.3
3.1
3.4
3.1

3.5
3.8

-8
-

39.9
41.9

18.2
13.5

35
-

41.8
42.4

Q 1 2015
Q 1 2014

Q 1 2015
Q 1 2014
2014
2013

Yie ld (%) FFA (%)

CPO production decreased by 11% in Q1 2015, with an Oil Extraction
Rate (OER) of 22.3%. Palm Kernel production fell 1% to 10,923 tons,
with most used by our Palm Kernel Oil mill which produced 3,455 tons
PKO.
Our CPO production quality improved slightly during the quarter, with
aggregate Free Fatty Acid (FFA) levels of just 2.81%. he maximum
monthly FFA level from mills primarily processing our own production
was just 3.56%. Nearly 30% of our CPO in Q1 was sold with FFA
below 3%, and can receive a premium of 1-4% to standard CPO.
Cost of Sale s (IDR b n)

2014

2013

2012

2011

2010

Fe rtilize r
Lab or
O the rs

324.7
401.0
328.6

288.7
336.0
244.7

326.7
274.3
224.3

193.7
166.1
227.4

161.1
107.2
210.8

FFB Purchase d
Milling

663.5
101.6

294.1
99.5

179.1
65.1

69.0
33.6

30.1
39.4

Total cash cost

1,819.3

1,263.0

1,069.5

689.7

548.6

4.61
3.73
21.95

3.76
3.38
19.92

4.23
3.90
21.51

3.64
3.46
17.82

4.05
4.01
17.67

388
314
1,848

359
323
1,906

451
416
2,293

414
394
2,029

446
441
1,945

48,038
8.9
6.3
394.3

43,644
8.4
6.4
336.2

38,361
8.0
6.0
252.5

32,955
7.7
5.4
189.7

27,117
7.5
4.8
135.3

Unit Cash Costs
(IDR mn)

CPO Total
CPO - Inte rnal FFB O nly
Mature Ha*

Q uarte rly CPO Prod uction
120
CPO ('000 t)

(USD)

CPO Total
CPO - Inte rnal FFB O nly
Mature Ha*

90
60

*Exclud ing Milling Costs

30

O p e rations Summary (FY2014)

0

Mature Are a (Ha)
Avg Ag e (Mat. Are a)
CPO Tons/Mature Ha
CPO Sale s ('000 t)

Q uarte rly O il Extraction Rate

O ER (%)

26
25
’15
‘14
‘13
‘12
‘11

24
23
22

Q uarte rly Fre e Fatty Acid %

Excluding costs of purchasing and processing external FFB, our cash cost
per ton of CPO was Rp3.73 million, or 10% higher than in 2013.
Our cash cost per mature hectare of Rp21.95 million was 10.2% higher
than in 2013, which was largely attributable to the weaker rupiah.

FFA (%)

4.0
3.5
3.0

Comp arative Pe e r CPO Yie ld b y Ave rag e Ag e of Estate s
6.5

2.5

CPO Yie ld - T/Mature Ha

2.0

Q uarte rly Rainfall
1000

Rainfall - E. Kal (mm)

Our cash cost in 2014 increased to Rp4.6 million per ton of CPO.
Purchases of external FFB – both plasma and unrelated estates - were up
126%, due to higher productivity of older estates, as well as external
purchases in support of Mill 5 operations.
Labor costs were up 19.4% for the year as our mature area increased by
10.1%. Labor accounts for roughly 22% of the total cash cost of sales,
while fertilizer contributed another 18%.

750
500
250

6.0

GAR

DSNG

5.5 SSMS
5.0
FRST

4.5
4.0
3.5

9.8
4.4

ANJT
AALI

BTMA
LSIP
KENC

3.0

SGRO

BWPT

SIMP

2.5

0
Q1

Q2

Q3

Q4

6

8

10

Avg Ag e

12

14

16

Source : Comp any re p orting and analyst re se arch

Q 1 2015 Re sults Up d ate

7

Expanding domestic re fining capacity, coupled with our
high-quality product, ensures robust demand for our CPO

22.3%
OER in Q1
2015
DSN p lantations
DSN Ports

DSN custome rs
Re fine rie s

1.2 tons
CPO per
hectare in Q1
2015

Sale s Pe rformance
Pe riod

CPO

2.81%

Q 1 2015
Q 1 2014
2014
2013
2012
2011

blended
average FFA
PK

Q 1 2015
Q 1 2014
2014
2013
2012
2011

PKO

30%

Q 1 2015
Q 1 2014
2014
2013

of CPO sales
are Super CPO

Volume

Re ve nue

ASP

'000 tons



Rp Bn



Rp mn/ton



83
90

-8
-

632
786

-20
-

7.66
8.78

-13
-

394
336
253
190

17
33
33
40

3,262
2,369
1,840
1,411

38
29
30
57

8.27
7.05
7.29
7.44

17
-3
-2
12

2
3

-7
-

12
14

-17
-

4.99
5.59

-11
-

10
16
35
21

-35
-55
63
23

49
42
115
93

16
-63
24
63

4.85
2.70
3.33
4.38

79
-19
-24
33

3
7

-55
-

36
69

-48
-

12.00
10.30

16
-

20
9

110
-

214
67

219
-

10.84
7.11

52
-

Our customers are
primarily Indonesian
CPO reineries located
in Kalimantan and Java,
close to DSN’s
operations.
Regular customers
include Smart, Wilmar,
Kuala Lumpur Kepong,
Musim Mas and
Dermaga Kencana
Indonesia. We expect
Astra’s new reinery on
Sulawesi Island to
become a customer in
the near future as well.

In Q1 2015, we sold 83 thousand tons of CPO, 8% below the level in Q1 2014. Our average selling price
of Rp7.66 million per ton was also 13% lower than the previous year. Pricing for Palm Kernel (PK) was
lower by 11%, while Palm Kernel Oil (PKO) was signiicantly more robust, rising by 16% from the
previous year.
Ind one sian CPO at a p re mium to Malaysia since 2013

CPO Q uarte rly ASP, 2010-2015

(USD/Ton)

per ton CPO in
Q1 ‘15

1,300

10
Malaysia FO B
Ind one sia FO B

1,100
900
700
500
Jan-10

8

ASP (Rp m/ton)

Rp7.66m

9
’15
‘14
‘13
‘12
‘11

8
7
6
5

Jan-11

Jan-12

Jan-13

Jan-14

Q1

Q2

Q3

Q4

PT Dharma Satya Nusantara Tb k (DSNG.JK)

DSN is also a leading wood products manufacturer with
reputable brand names & long-standing client relationships
DSN is the fourth largest wood products manufacturer in
Indonesia, producing panels, engineered loors and doors.
We have recently initiated a shift into higher value, higher margin
products through the acquisition of TKPI, which specializes in
engineered looring. We continue to leverage on our long standing
relationships with customers to across the world to leverage this
new business initiative.
Our diverse exposure to customers in different segments and
geographies has protected us to from adverse economic impacts as
we maintain and grow our wood products business.
For wood products, we have suicient capacity to meet our current
growth plans. We intend to more than double production volume
in engineered looring from 1.1 million m2 in 2012 to 2.6 million
m2 by 2015, while our plant currently has capacity to produce up
to 4 million m2.

and consolidating our operations in Surabaya and Gresik to a new
panel products processing plant in Lumajang by 2015. his is closer
to our satellite plants and will reduce our transportations costs.
We comply with various domestic and international environmental
standards in our wood products manufacturing processes, and seek
to ensure that all the logs and sawn timber purchased for our
operations are produced from sustainable forest resources.
We were awarded the Certiication of Legal Wood certifying our
use of legally sourced logs and have also obtained the Forest
Stewardship Council (FSC) Chain-of-Custody and Program for
the Endorsement of Forest Certiication (PEFC) certiications.
We meet the Conformité Européenne (CE) labeling standards for
products exported to Europe and have received certiications from
the California Air Resources Board (CARB) and the Japanese
Agricultural Standard ( JAS).

We will be optimizing our wood products eiciency by relocating
Top 10 Ind ustrial and Comme rcial Custome rs
Custome r Name
Typ e

Prod ucts

S.A. Shahab & Comp any Pte Ltd
Sumitomo Fore stry Comp any Ltd .
Vintag e Hard wood Flooring
Jiang su Skyrun Arse r Co., Ltd
Asia Trad ing , Inc
Associate d Lumb e r & Trad ing , Ltd
PKF Glob al
Plyq ue t Holzimp ort
Te ka Kore a Co., Ltd
Be ijing Te ka Holy Eag le Corp oration

Pane ls
Pane ls
Eng ine e re d
Pane ls
Pane ls
Pane ls
Eng ine e re d
Eng ine e re d
Eng ine e re d
Eng ine e re d

Q 1-2015

Trad e r
Trad e r
Distrib utor
Trad e r
Trad e r
Trad e r
Trad e r
Distrib utor
Distrib utor
Distrib utor

Q 1-2014 YoY Δ%

Ye ars Ge og rap hy

Flooring

Doors
Flooring
Flooring
Flooring

11 ye ars
8 ye ars
9 ye ars
3 ye ars
7 ye ars
5 Ye ars
15 ye ars
17 ye ars
12 ye ars
11 ye ars

Mid d le East
Jap an
Canad a
China
Jap an
Jap an
UK
Europ e
South Kore a
China

Q 4-2014 QoQ Δ%

2014

2013 YoY Δ%

Sale s Volume  
Pane l (m3)

48,235

58,019

-16.9

51,823

-6.9

201,696

244,642

-17.6

Eng ine e re d d oors (Pcs)

14,576

10,273

41.9

13,692

6.5

51,469

51,989

-1.0

256,965

304,252

-15.5

267,258

-3.9

1,145,956 1,073,412

6.8

Eng ine e re d flooring (m2)

Ave rag e Se lling Price (IDR mn)
Pane l (m3)

4.60

4.32

6.5

4.53

1.5

4.37

3.97

10.0

Eng ine e re d d oors (p cs)

1.49

1.28

16.0

1.36

9.5

1.24

1.06

16.6

Eng ine e re d flooring (m2)

0.39

0.35

12.4

0.39

0.0

0.37

0.31

17.6

4,000,000
m2/ annum
flooring capacity

Q 1 2015 Re sults Up d ate

41.9%
growth in door
sales volume

11.5%

450,000

increase in
flooring ASP

m3/ annum panel
capacity

9

Q 1 2015 Financial Summary
Total Consolid ate d (IDR b n)

Q 1-2015

Q 1-2014

YoY Δ%

Re ve nue
Gross Profit
% margin
O p e rating Profit
% margin
EBITDA
% margin
Ne t Profit
% margin
Fore x g ain (loss) from financing
Exce p tional ite m
Ad juste d Profit*
% margin

1,024
272
26.6
169
16.5
245
23.9
58
5.7
(36)
85
8.3

1,238
341
27.5
205
16.6
270
21.8
151
12.2
55

(17.3)
(20.2)

Cash flow from op e rations
Cash flow from inve stme nts
Cash flow from financing
Total Palm O il (IDR b n)
Re ve nue
Gross Profit
% margin
O p e rating Profit
% margin
EBITDA
% margin
Profit Be fore Tax
% margin
Total Wood Prod ucts (IDR b n)
Re ve nue
Gross Profit
% margin
O p e rating Profit
% margin
EBITDA
% margin
Profit Be fore Tax
% margin
Financial Position

(17.8)
(9.1)
(61.6)

110
8.9

(22.5)

61
(232)
29

207
(215)
(15)

(70.6)
7.8
NA

Q 1-2015

Q 1-2014

YoY Δ%

680
221
32.4
158
23.2
221
32.4
109
16.0

869
290
33.4
209
24.1
259
29.8
208
23.9

(21.7)
(23.9)

Q 1-2015

Q 1-2014

344
51
14.9
28
8.1
41
12.0
1
0.3
Q 1-2015

369
51
13.7
16
4.4
30
8.2
28
7.6
Q 1-2014

Total d e b t
Ne t d e b t
Total Asse t
Total Eq uity
Total d e b t / e q uity
Ne t d e b t / e q uity
Ne t d e b t / EBITDA

3,682
2,627
7,368
2,249
1.6x
1.2x
2.0x

2,899
2,429
6,118
1,830
1.6x
1.3x
2.4x

Loans b y Curre ncy, Q 1 2015

IDR Bn

US$ MM

Re volving Loan
Curre nt Portion of LT De b t
Long Te rm De b t
Finance Le ase s

370
362
2,212
1

28
12
16
0

Total

2,944

56

Q 4-2014 Q oQ Δ%

1,172
454
38.7
246
21.0
313
26.7
128
10.9
(14)
(69)
190

(12.7)
(40.0)
(31.5)
(21.8)
(54.8)

(55.2)

16.2

(24.6)
(14.9)
(47.6)

YoY Δ%

(6.9)
1.3
71.3
35.1
(96.1)

YoY Δ%

27.0
8.2
20.4
22.9

255
(272)
199

2014

2013

4,898
1,709
34.9
1,075
22.0
1,339
27.3
650
13.3
(12)
(69)
711

3,842
1,190
31.0
657
17.1
888
23.1
216
5.6
(184)

14.5

9.2

354

YoY Δ%

27.5
43.6
63.7
50.8
201.3

100.8

(76.1)
(15.0)
(85.4)

997
(885)
593

595
(745)
96

67.7
18.7
516.1

Q 4-2014 Q oQ Δ%

2014

2013

YoY Δ%

814
365
44.9
288
35.4
342
42.1
256
31.5

(16.4)
(39.6)
(45.3)
(35.6)
(57.6)

Q 4-2014 Q oQ Δ%

358
88
24.6
(17)
(4.7)
(4)
(1.2)
(36)
(10.1)

(4.1)
(41.8)
(264.7)
NA
(103.0)

Q 4-2014 Q oQ Δ%

3,532
2,408
7,174
2,293

4.3
9.1
2.7
(1.9)

1.5x
1.0x
1.8x
 

3,525
1,509
42.8
1,166
33.1
1,376
39.0
1,052
29.8

2,478
1,046
42.2
707
28.5
885
35.7
517
20.9

42.3
44.2
65.0
55.6
103.5

YoY Δ%

2014

2013

1,374
200
14.6
11
0.8
64
4.7
(41)
(3.0)

1,364
144
10.5
20
1.5
73
5.4
(80)
(5.9)

2014

2013

YoY Δ%

3,532
2,408
7,174
2,293
1.5x
1.0x
1.8x

2,961
2,474
5,921
1,679
1.8x
1.5x
2.8x

19.3
(2.7)
21.2
36.6

0.7
39.1
(47.2)
(12.4)
(48.7)

Consolid ate d ad juste d p rofit e xclud e s the imp act
of unre alize d financing fore x g ains/losse s

Note : Annual Financial State me nts are aud ite d b y Sid d harta & Wijaja, Re g iste re d Pub lic Accountants, and a Me mb e r Firm of KPMG
Inte rnational.

10

PT Dharma Satya Nusantara Tb k (DSNG.JK)

Q1 2015 Operations Summary
YoY Δ%

Q 4 2014 QoQ Δ%

Q 1 2015

Q 1 2014

Palm Estate s
Mature Land (ha)
Nucle us
Plasma

56,418
50,732
5,686

53,649
48,038
5,611

5.2
5.6
1.3

53,649
48,038
5,611

5.2
5.6
1.3

53,649
48,038
5,611

48,572
43,644
4,928

10.5
10.1
13.9

42,333
38,361
3,972

Planted Land (ha)
Nucle us
Plasma

81,142
63,486
17,657

72,018
58,755
13,263

12.7
8.1
33.1

80,064
62,778
17,286

1.3
1.1
2.1

80,064
62,778
17,286

70,537
57,862
12,675

13.5
8.5
36.4

61,342
52,063
9,279

FFB Production (t)
Nucle us
Plasma
FFB Yield (t/ha)
Nucle us
Plasma

298,953
273,556
25,397

303,231
278,719
24,512

-1.4
-1.9
3.6

371,629
337,581
34,048

-19.6
-19.0
-25.4

1,376,498
1,257,634
118,865

1,240,818
1,152,610
88,207

10.9
9.1
34.8

1,019,923
976,710
43,212

5.4
4.5

5.8
4.4

-7.1
2.2

7.0
6.1

-23.3
-26.4

26.2
21.2

26.4
17.9

-0.9
18.4

25.5
10.9

351,237
78,258
10,923
3,455

373,813
88,385
10,988
3,760

-6.0
-11.5
-0.6
-8.1

429,722
102,165
14,739
5,356

-18.3
-23.4
-25.9
-35.5

1,635,342
390,857
53,324
18,197

1,380,528
335,730
43,277
13,482

18.5
16.4
23.2
35.0

1,052,490
256,971
35,716
-

22.3
3.1
2.81

23.6
2.9
2.87

-5.8
5.8
-2.2

23.8
3.4
3.12

-6.3
-9.3
-10.1

23.9
3.3
2.93

24.3
3.1
2.65

-1.7
4.0
10.4

24.4
3.4
2.67

82,550
2,363
3,000

89,554
2,533
6,701

-7.8
-6.7
-55.2

100,739
2,537
4,001

-18.1
-6.8
-25.0

394,344
10,127
19,704

336,240
15,623
9,400

17.3
-35.2
109.6

252,536
34,589
-

7.66
4.99
12.00

8.78
5.59
10.30

-12.7
-10.7
16.5

7.55
3.98
10.66

1.4
25.4
12.6

8.27
4.85
10.84

7.05
2.70
7.11

17.4
79.4
52.4

7.29
3.33
-

Q 1-2015

Q 1-2014

YoY Δ%

YoY Δ%

2012

Mills
Production (tons)
FFB Proce sse d
Crud e Palm O il (CPO )
Palm Ke rne l (PK)
Palm Ke rne l O il (PKO )
Yields (%)
O il Extraction Rate (O ER)
Ke rne l Extraction Rate (KER)
Fre e Fatty Acid (FFA)
Sale s
Volume (tons)
Crud e Palm O il (CPO )
Palm Ke rne l (PK)
Palm Ke rne l O il (PKO )

Average Selling Price (IDR mn/ton)
Crud e Palm O il (CPO )
Palm Ke rne l (PK)
Palm Ke rne l O il (PKO )

Wood Prod ucts Summary
Sale s Volume
Pane l (m3)
Eng ine e re d d oors (p cs)
Eng ine e re d floors (m2)

Q 4-2014 QoQ Δ%

2014

2014

2013

YoY Δ%

Palm O il Summary

2013

2012

48,235
14,576
256,965

58,019
10,273
304,252

-16.9
41.9
-15.5

51,823
13,692
267,258

-6.9
6.5
-3.9

201,696
51,469
1,145,956

244,642
51,989
1,073,412

-17.6
-1.0
6.8

334,512
91,102
1,166,657

4.60
1.49
0.39

4.32
1.28
0.35

6.5
16.0
11.5

4.53
1.36
0.39

1.5
9.5
-0.8

4.37
1.24
0.37

3.97
1.06
0.31

10.0
16.6
17.6

3.10
0.68
0.27

Ave rag e Se lling Price (IDR mn)
Pane l (m3)
Eng ine e re d d oors (p cs)
Eng ine e re d floors (m2)

DISCLAIMER: This p re se ntation may contain forward -looking state me nts that involve risks and unce rtaintie s. Actual future p e rformance , outcome s and re sults may d iffe r
mate rially from those e xp re sse d in forward -looking state me nts as a re sult of a numb e r of risks, unce rtaintie s and assump tions. Althoug h the Comp any b e lie ve s that such forward looking state me nts are b ase d on re asonab le assump tions, it can g ive no assurance that such e xp e ctations will b e me t. You are cautione d not to p lace und ue re liance on the se
forward looking state me nts, which are b ase d on the curre nt vie w of the manag e me nt on future e ve nts.
Unle ss othe rwise state d , the Comp any is the source for all d ata containe d in this p re se ntation. Such d ata is p rovid e d as at the d ate of this p re se ntation and is sub je ct to chang e
without notice . No re liance may b e p lace d for any p urp ose s whatsoe ve r on the information containe d in this p re se ntation, or any othe r mate rial d iscusse d at the p re se ntation, or
on the comp le te ne ss, accuracy or fairne ss the re of.
The information in this p re se ntation has not b e e n ind e p e nd e ntly ve rifie d . No re p re se ntation, warranty, e xp re ss or imp lie d , is mad e as to, and no re liance should b e p lace d on, the
fairne ss, accuracy, comp le te ne ss or corre ctne ss of the information and op inions in this p re se ntation. None of the Comp any or any of its ag e nts or ad vise rs, or any of the ir
re sp e ctive affiliate s, ad vise rs or re p re se ntative s, und e rtake to up d ate or re vise any forward -looking state me nts, whe the r as a re sult of ne w information, future e ve nts or othe rwise
and none of the m shall have any liab ility (in ne g lig e nce or othe rwise ) for any loss howsoe ve r arising from any use of this p re se ntation or its conte nts or othe rwise arising in
conne ction with this p re se ntation.
This p re se ntation also contains ce rtain statistical d ata and analyse s which have b e e n p re p are d b y the Comp any and /or othe r source s. Nume rous assump tions we re use d in
p re p aring the Statistical Information, which assump tions may or may not ap p e ar he re in. As such, no assurance can b e g ive n as to the Statistical Informations accuracy,
ap p rop riate ne ss or comp le te ne ss in any p articular conte xt, nor as to whe the r the Statistical Information and /or the assump tions up on which the y are b ase d re fle ct p re se nt marke t
cond itions or future marke t p e rformance .

Q 1 2015 Re sults Up d ate

11

DSNG Daily Share Price (rp /share ) & Trad ing Volume (share s)

(%)

DSNG Share hold e rs

5,000

4,000

3,000

O e tomo Family

29.8

Rachmat Family

25.4

Salim Lim Family

8.2

Sub ianto Family

7.2

Commissione rs & Dire ctors
Pub lic

2,000

8.0
21.6

as of 31 March 2015
1,000

0

For ad d itional information,
p le ase re fe r to our we b site at:
14-Jun-13

14-De c-13

14-Jun-14

www.d sn.co.id

14-De c-14

DSNG Share Price vs. IDX & Ag ri Ind e x
3.0
DSNG
2.5
2.0

If you have ad d itional q ue stions
or re q ue sts, you may contact us
at:

Ag ri
1.5
IDX

1.0
0.5
0.0
14-Jun-13

14-De c-13

14-Jun-14

14-De c-14

inve stor.re lations@d sng roup .co.id