20160728 SGRO newsletter english

PT SAMPOERNA AGRO Tbk

COMPANY NEWSLETTER
July 2016 issue

summary
DEPRESSED YIELD
Jakarta, 28 July 2016 – PT “a poer a Agro T k. a d su sidiaries “a poer a Agro" or the Co pa
released its unaudited financial and operational results for the period ending in 30 June 2016 M16 .
The Company recorded Rp1,075.62 billion in revenue within the first semester 2016, or 18% lower than
the sa e period i the pre ious ear
M1 . A significant drop in CPO sales during the semester in
review was blamed for the soft performance.
Sales contribution from CPO, as the mainstay product, fell from RpRp1,087.57 billion in 6M15 to
Rp865.98 billion in 6M16 because average selling price declined 11% from Rp7,755 per kg in 6M15 to
Rp6,914 per kg in 6M16. Sales volume of the key contributor also retreated 11% during the period.
To egi
ith, e ha e started to e perie e seaso all lo
rop since last February, said Mar
Louette, CEO of the Co pa . O top of that, e also felt the i te sif i g effe t of last ear’s e tre e
drought that lasted for four months in the second half. As a result, we are seeing depressed yield across

our pla tatio fields i “u atra a d Kali a ta .
FFB harvests during the first half of this year declined 38% from 726,690 tons in 6M15 to 453,677 tons in
6M16. Within the period, nucleus estates produced 297,209 tons of FFB, or 31% lower than the same
period last year while external FFB processed at the mills plunged even more, from 296,571 tons in
6M15 to 156,468 tons in 6M16. Extraction rates, however, continued to improve from 21.8% to 22.1%
as an evidence of continued improvement following past intensification efforts.
Management strategy towards a more balanced geographical diversification has also started to pay off.
While our nucleus estates in South Sumatra experienced a 62% fall in FFB harvests in the second quarter
versus first quarter of 2016, our Kalimantan estates recorded a mere 2% decline.
On the flip side, Sampoerna Agro carved another milestone in its palm oil expansion journey on 23 June
2016. The Company signed a sale and purchase agreement to acquire PT Anugerah Palm Indonesia PT
API . Main purpose for the acquisition is that PT API has access to 12,880 hectares of concession area in
Ketapang Regency of West Kalimantan. Around 43% of it has already been granted Hak Guna Usaha
permit. Based on our surveyor findings, it is estimated around 56% of total concession area can be
planted sustainably. Hence, it reasonably supports the construction of another palm oil mill within the
newly acquired area in the future.
Marc added, PT API’s o essio is strategi to us si e it is lo ated in-between two of our existing oil
palm land assets, hi h e hope ould pa e the a for ore operatio al s ergies.
-o0o-


Sumatera: Jln. Basuki Rahmat No. 788, Palembang 30127, Sumatera Selatan, Indonesia Tel +62-711 813388 Fax +62-711 811585
Jakarta : Sampoerna Strategic Square, North Tower, 28th Floor, Jln. Sudirman Kav. 45, Jakarta 12930, Indonesia
Tel +62-21 5771711 Fax +62-21 5771712 http://www.sampoernaagro.com

PT SAMPOERNA AGRO Tbk

COMPANY NEWSLETTER
July 2016 issue

corporate details
o

Area statement as of June 2016:
Oil Palm
Nucleus Plasma
65,621 47,967
17,815
5,326
83,437 53,293


matured
immature
total

Other crops
Sago Rubber Others
1,403
183
11,378 11,073
574
12,781 11,256
574

Sub-T
113,588
23,142
136,729

TOTAL
115,174

46,167
161,340

Note: area statement have not included PT. API

o

Production of key products:

in tons
FFB - nucleus
FFB - external
CPO
P.Kernel
G.Seeds (1000s)

Jan-16
80,650
59,671
31,402

6,611
910

Feb-16
51,507
31,255
18,313
3,708
1,912

Mar-16
45,020
19,719
13,963
3,135
1,562

Apr-16 May-16
39,904 41,375
15,169 16,242

11,507 12,143
2,670
2,454
514
550

YTD 16
297,209
156,468
98,728
20,896
5,671

Jan-15
52,194
30,055
18,056
3,775
1,253


Feb-15
50,001
26,781
17,304
3,703
1,907

Mar-15
69,813
36,540
22,928
5,737
1,497

Apr-15 May-15
76,175 83,585
46,992 65,293
26,668 32,347
6,666
7,195

1,298
758

Jun-15
98,351
90,910
39,718
9,245
727

YTD 15
430,118
296,571
157,021
36,322
7,440


-31%
-47%

-37%
-42%
-24%

YTD 16
6,914
6,914
5,332
7,930

Jan-15
7,714
7,714
4,491
7,790

Feb-15
7,937
7,937
4,868

7,500

Mar-15
8,096
8,096
5,141
7,726

Apr-15 May-15
7,862
7,498
7,862
7,498
5,573
4,872
7,427
7,665

Jun-15
7,617

7,617
4,599
8,841

YTD 15
7,755
7,755
4,925
7,720


-11%
-11%
+8%
+3%

Jun-16
YTD 16
88.68
865.98
18.09
120.02
3.67
40.89
6.63
48.73
117.07 1,075.62

Jan-15
162.34
16.73
5.09
4.04
188.20

Feb-15
117.04
16.30
7.53
4.61
145.48

Mar-15
156.40
24.36
9.34
3.09
193.19

Apr-15 May-15
192.71 167.30
34.15
36.22
8.34
4.92
4.19
3.36
239.39 211.80

Jun-15
YTD 15

291.77 1,087.57 -20%
39.40
167.15 -28%
4.20
39.42 +4%
3.38
22.66 +115%
338.75 1,316.81 -18%

Jun-16
38,753
14,412
11,399
2,319
223

Note: Not all FFB was processed by palm oil mill within the same day it was harvested

o

Average selling price of key products:

in Rp/kg
Jan-16
CPO
6,261
CPOᵋ
6,261
P.Kernel
4,465
G.Seeds (Rp/unit) 7,629

Feb-16
6,560
6,560
4,996
7,735

Mar-16
7,071
7,071
5,175
7,857

Apr-16 May-16
7,716
8,181
7,716
8,181
6,223
6,324
7,797
8,154

Jun-16
7,810
7,810
6,654
9,295

Note: CPOᵋ pri e is et of e port ta

o

Revenue breakdown by key products:

in Rp bn
CPO
P.Kernel
G.Seeds
Others
Total Sales

Jan-16
233.45
36.04
7.21
5.93
282.63

Feb-16
228.55
12.75
10.17
4.04
255.52

Mar-16
137.49
20.40
8.76
14.72
181.37

Apr-16 May-16
79.80
98.01
19.10
13.64
4.93
6.15
11.68
5.73
115.50 123.53

Note: Others are revenue generated from sago, rubber, FFB, palm kernel products, and electricity

FFB output (Kalimantan vs Sumatra)

FFB output (Nucleus vs Plasma)
100%

100%

50%

75% 72% 74%
89% 88% 84% 85% 83% 80%

0%

25% 28% 26%
11% 12% 16% 15% 17% 20%

50%

Sumatra

66%
52% 54%
36% 38% 40% 43% 42% 42% 48%

43%

2007 2008 2009 2010 2011 2012 2013 2014 2015 6M16
Kalimantan

34%
48% 46%
64% 62% 60% 57% 58% 58% 52%

57%

0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 6M16
Nucleus

Plasma

For further inquiries, please contact us at investor.relations@sampoernaagro.com

Sumatera: Jln. Basuki Rahmat No. 788, Palembang 30127, Sumatera Selatan, Indonesia Tel +62-711 813388 Fax +62-711 811585
Jakarta : Sampoerna Strategic Square, North Tower, 28th Floor, Jln. Sudirman Kav. 45, Jakarta 12930, Indonesia
Tel +62-21 5771711 Fax +62-21 5771712 http://www.sampoernaagro.com