PT Sinar Mas Agro Resources and Technology Tbk : SMARTnews Tahun 2021

Smartnews - December 2021

• Another record year for SMART with 49% growth in EBITDA of Rp 6.12 trillion and 84% higher net profit of Rp 2.83 trillion
• Excellent performance primarily supported by continued high CPO market prices and robust industry environment

PLANTATION STATISTICS

As of 31 December 2021, the Company's palm plantation area stood at approximately 137,100 hectares, comprising 127,600 hectares of mature estates and 9,500 hectares of immature estates. Nucleus and plasma estates amounted to 105,900 and 31,200 hectares, respectively.

Description	FY 2021	FY 2020	Change
FFB produced - MT	2,424,424	2,569,177	-5.6%
CPO produced - MT	549,990	581,360	-5.4%
PK produced - MT	149,840	157,415	-4.8%
Oil extraction rate - %	21.1	21.1	-
Kernel extraction rate - %	5.7	5.7	-

Compared to the prior year, SMART's fruit production decreased by 5.6% to 2.42 million tonnes, mainly due to lower mature estates from replanting activities and high rainfalls in East and Central Kalimantan. CPO and PK production also declined to 550 thousand and 150 thousand tonnes, respectively. Oil and kernel extraction rates remain at 21.1% and 5.7%, respectively.

FINANCIAL PERFORMANCE
In billion Rupiah	FY 2021	FY 2020	Change
Net sales	57,004	40,434	41.0%
Cost of goods sold	46,047	34,557	33.2%
Gross profit	10,957	5,877	86.4%
Income from operations	3,882	2,323	67.1%
EBITDA	6,118	4,094	49.4%
Net profit attributable to owners of the
parent company	2,827	1,539	83.7%

Total net sales in 2021 was over Rp 57 trillion, an all- time high, expanded by 41% due to stronger CPO prices whilst sales volume increased by 1%. CPO market prices (FOB Belawan) increased by 69% from the prior year, averaging US$ 1,168 per MT. After deducting export tax and levy, the average net CPO market prices was US$ 819 per MT, or 31% higher than previous year. In line with our strategy to pursue higher-value products, refined products contributed the majority of revenue. Combined sales of refined branded and unbranded products (including biodiesel and oleo-chemicals) represented 88% of total sales, while CPO and other non-refined products represented the remaining 12%.

Cost of goods sold increased by 33% to Rp 46.05 trillion from Rp 34.56 trillion in the previous year as raw materials costs increased in line with expanded sales.

During the current year, income from operations reached Rp 3.88 trillion, grew by 67% resulting from higher gross profit, partly offset by higher selling expenses. The increase in selling expenses was mostly attributable to the higher export tax and levy charges due to the strengthening of CPO market prices and revised higher export levy scheme since December 2020.

Corresponding to the increase in income from operations, the Company's EBITDA grew by 49% to Rp 6.12 trillion, beating last year's record of Rp 4.09 trillion.

As a result, SMART recorded significantly higher net profit attributable to owners of the parent company of Rp 2.83 trillion in 2021 from Rp 1.54 trillion in the previous year. The net profit translates into earnings per share of Rp 984.

FINANCIAL POSITION
In billion Rupiah	31-Dec-21	31-Dec-20	Change
Assets	40,345	35,026	15.2%
Liabilities	25,927	22,502	15.2%
Equity attributable to owners of the parent
company	14,407	12,516	15.1%

As of 31 December 2021, the Company's total assets increased by 15.2% to Rp 40.35 trillion from Rp 35.03 trillion at the end of 2020. The increase was mainly attributable to higher trade receivables and inventories in line with the strengthening of CPO prices, as well as new investment in PT Sumber Indahperkasa's shares.

Total liabilities as per end 2021 stood at Rp 25.93 trillion, an increase by 15.2% compared to end 2020. Partly offset by lower bank loans balance, the increase primarily came from the issuance of bonds on the Indonesia Stock Exchange during the year and higher advance from customers. As of 31 December 2021, bank loans (including bonds payable) totaled Rp 19.70 trillion with a healthy net gearing1 of 0.28x.

Total equity attributable to owners of parent company increased to Rp 14.41 trillion as of 31 December 2021, from Rp 12.52 trillion at the end of 2020. The Company's retained earnings expanded to Rp 11.78 trillion compared to Rp 9.90 trillion as at end 2020 resulting from the current year's income, which was partly offset by dividend distribution for 2020 earnings and interim dividend for 2021 earnings.

For further information, please contact:

Investor Relations Team [e-mail]

• Total borrowings less cash and cash equivalents less liquid working capital divided by total equity