PT Sinar Mas Agro Resources and Technology Tbk : First Quarter 2023 SMARTnews

Smartnews - March 2023

• With expanded sales volume, SMART's revenue in the first quarter 2023 increased slightlyyear-on- year to Rp 17.52 billion offsetting the much lower CPO market prices
• EBITDA for the first quarter 2023 was over Rp 1 billion with margin held up well at 5.7%

PLANTATION STATISTICS

As of 31 March 2023, the Company's palm plantation area stood at approximately 136,400 hectares, comprising 130,600 hectares of mature estates and 5,800 hectares of immature estates. Nucleus and plasma estates amounted to 105,100 and 31,300 hectares, respectively.

Description	1Q 2023	1Q 2022	Change
FFB produced - MT	505,550	490,933	3%
CPO produced - MT	116,146	114,866	1%
PK produced - MT	32,539	31,528	3%
Oil extraction rate - %	20.5	21.0	-0.5%
Kernel extraction rate - %	5.7	5.8	-0.1%

Despite our continued replanting activities, SMART's fruit production for the quarter managed to increase by 3% year-on-year to 506 thousand tonnes, resulting in higher CPO and PK production at 116 thousand tonnes and 33 thousand tonnes, respectively. Oil and kernel extraction rates decreased to 20.5% and 5.7%, respectively, affected by high rainfalls in the past few months.

FINANCIAL PERFORMANCE
In billion Rupiah	1Q 2023	1Q 2022	Change
Net sales	17,520	17,380	1%
Cost of goods sold	15,662	14,237	10%
Gross profit	1,858	3,143	-41%
Income from operations	474	1,267	-63%
EBITDA	1,005	1,728	-42%
Net profit attributable to owners of
the parent company	248	912	-73%

First quarter 2023's net sales increased slightly year-on-year to Rp 17.52 trillion resulting from higher sales volume, which offset the lower selling prices. CPO market prices (FOB Belawan) during the current period subsided by 37% year- on-year, averaging at US$ 990 per MT from a high base of US$1,579 per MT in the first quarter 2022. Most of our revenue came from palm-based derivative products, i.e. refined branded and unbranded products (including biodiesel and oleochemicals), which accounted for 79% of total sales. CPO and other non-refined product sales represented the remaining 21%.

1

Cost of goods sold for the three-month period ended 31 March 2023 increased by 10% to Rp 15.66 trillion from Rp 14.24 trillion in the previous year. The increase was mostly due to higher raw materials cost as sales volume expanded, as well as higher fertiliser costs.

Income from operations for the current quarter was lower by 63% to Rp 474 billion due to the decrease in gross profit, partially offset by the decrease in operating expenses. The decrease in operating expenses was mostly attributable to lower export tax and levy charged.

Corresponding to the decrease in income from operations, the Company booked a lower EBITDA of Rp 1.01 trillion from Rp 1.73 trillion in the first quarter 2022. As a result, net profit attributable to owners of the parent company stood at Rp 248 billion, which translated into earnings per share of Rp 86.

FINANCIAL POSITION
In billion Rupiah	31-Mar-23	31-Dec-22	Change
Assets	39,942	42,601	-6%
Liabilities	20,519	23,353	-12%
Equity attributable to owners of the parent
company	19,411	19,235	1%
Debt to Equity ratio (times)	0.81x	0.95x

As of 31 March 2023, the Company's total assets decreased by 6% to Rp 39.94 trillion from Rp 42.60 trillion at the end of 2022. The decrease was mainly attributable to lower trade accounts receivable as well as cash and cash equivalents.

Total liabilities as per end of March 2023 stood at Rp 20.52 trillion, 12% lower compared to that at the end of 2022. The decrease primarily came from the settlement of bank loans and bonds payable. As of 31 March 2023, bank loans (including bonds payable) totaled Rp 15.61 trillion with gearing further lowered to 0.81x.

Total equity attributable to owners of parent company increased to Rp 19.41 trillion as of 31 March 2023, from Rp 19.23 trillion at the end of 2022. The Company's retained earnings was higher at Rp 16.70 trillion compared to Rp 16.46 trillion as at end 2022 resulting from the current period's income.

For further information, please contact:

Investor Relations Team [e-mail]

2