Press Release Annual General Meeting of Shareholders and Public Expose 2019

Jakarta, 25 June 2019 – PT Sawit Sumbermas Sarana Tbk (SSMS) today held its Annual General Meeting of Shareholders and Public Expose at the Financial Hall Graha Niaga, Jakarta. The AGM agenda items were:

1.    Report of the Board of Directors regarding the running of the Company and Financial Administration for the financial year ended 31 December 2018;

2.    Agreement and ratification of the profit & loss calculation for the financial year ending on December 31, 2018;

3.    Provisions and conditions for the use of funds obtained in the financial year ending December 31, 2018;

4.    Appointment of a Public Accountant to conduct an audit of the Financial Statements for fiscal year 2019; and

5.    Other Company Agenda, namely:

a)    Approval by shareholders of a planned Material Transaction (the “Transaction”) approved by Bapepam and LK Regulation No. IX.E.2 concerning Material Transactions and Changes in Main Business Activities, Chairperson of Decision of Chairman of Bapepam and LK No. Kep-614 / BL / 2011 dated November 28, 2011, to restructure loans between, among others, PT Citra Borneo Indah (CBI), PT Kalimantan Sawit Abadi (KSA), PT Mitra Mendawai Sejati (MMS), PT Tanjung Sawit Abadi (TSA), PT Sawit Multi Utama (SMU), PT Menteng Kencana Mas (MKM), PT Mirza Pratama Putra and PT Surya Borneo Industri (SBI) (collectively referred to as " Affiliates"), including such Transfer Agreements as already exist between the SSMS and the Affiliates, and signature of the transfer agreement (cessie), loan agreement, debt agreement, debt meeting and / or other related documents ("Restructuring Plan");

b)    Approval of SSMS' plan to convert rights to shares to those arising from the implementation of the Transaction, with shares in SBI ("Conversion Plan"); and

c)    To authorize the Board of Commissioners or parties appointed by the Board of Commissioners to carry out such  actions as deemed necessary and ratified (including any changes, expansion, improvements and/or improvements) and documents related to the planned Transaction.

In its public expose, SSMS announced a significant growth of the company’s Fresh Fruit Brunches (FFB) and Crude Palm Oil (CPO) production in 2018.

Speaking at a Public Expose today in Financial Hall, Jakarta, SSMS Chief Financial Officer Nicholas J. Whittle explained the company’s resilient performance.

“We recorded a 33.3% increment of FFB production year-on-year (yoy) from 1.26 million tons in 2017 to 1.62 million tons in 2018,” said Whittle. “This was followed by a surge in CPO production by 29.5% yoy, from 343,000 tons in 2017 to 444,000 tons in 2018.”

The increased production allowed SSMS to weather some of the adverse effects of industry-wide challenges, such as the weakening of CPO prices, biodiesel debate in European Union, and India’s high import tariff. SSMS maintained healthy sales of Rp3.71 billion though net income declined to Rp86.77 million. It also announced that it will pay out a 30% dividend from net income.

“Our CPO yield is among the highest in the industry. It recorded a jump from 5.4 tons CPO/Ha in 2017 to 5.9 tons CPO/Ha in 2018 or 12.0% yoy,” added Whittle. “Coupled with our efficient plantations and low cash costs, we remain cautiously optimistic in 2019. We are also anticipating further production gains from newly maturing plantings and two new CPO mills.”

As of May 2019, SSMS has a production capacity of 500MT of FFB per hour. With the addition of a new plant at the end of the year it will increase production capacity to 560MT FFB per hour

Where sustainability is concerned, SSMS has completed Roundtable of Sustainable Palm Oil (RSPO) audits for three more of its subsidiaries, including PT Tanjung Sawit Abadi, PT Kalimantan Sawit Abadi, and PT Sawit Multi Utama in 2018. Going forward, SSMS is aiming for its other subsidiaries, PT Menteng Kencana Mas and PT Mirza Pratama Putra, to attain their RSPO certifications this year and for its smallholders and supply chains to receive RSPO certifications in 2020.  

“We have laid out a very clear roadmap towards achieving 100% RSPO certification for all our estates and operations by 2020,” added Swasti Kartikaningtyas, Head of Corporate Secretary of SSMS.

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About the company

PT Sawit Sumbermas Sarana Tbk. (SSMS) is a palm oil company with a mission to realize the full potential of palm oil. SSMS manages an integrated business across 19 oil palm estates, six oil palm mills (PKS) and one palm kernel mill out of Pangkalan Bun, Central Kalimantan, Indonesia. SSMS believes that palm oil companies, if they do the business right, can play a key role in sustaining the environment and providing for human needs at the same time. This is the role the company aims to play.

For further information, please contact:

Swasti Kartikaningtyas            
Head of Corporate Secretary            
PT Sawit Sumbermas Sarana Tbk        
corporate@ssms.co.id