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Kencana Agri Limited

3Q 2012 Performance Review

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Disclaimer

This document has not been independently verified and has been prepared for

informational purposes only. No representation or warranty express or imply is

made as to, and no reliance should be placed on, the fairness, accuracy,

completeness or correctness of the information or opinions contained herein.

It is not the intention to provide, and you may not rely on this document as

providing, a complete or comprehensive analysis of the company’s financial or

trading position or prospects. The information and opinions contained in these

materials are provided as at the date of this presentation and are subject to

change without notice.

None of Kencana Agri Limited or any of its affiliates, advisers or representatives

shall have any liability whatsoever (in negligence or otherwise) for any loss

whatsoever arising from any use of this document or its contents.

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Total Production 2011 : 116,515 MT9M2012 : 87,563 MT

Palm Oil Mills : 4Total Capacity : 210 MT/hour

Biomass Power Plant

Supporting Business

Port and Bulking Terminal

Logistics

Biomass Plant : 2 (Bangka,

Belitung)

Total Capacity : 13.5 MW

Palm Kernel Cake

CPO

CPKO

Fresh Fruit Bunches (FFB)

Total Land bank :198,935* ha

Nucleus :183,888 ha

Plasma : 15,047 ha

Total Planted Area : 58,195 ha

Nucleus : 45,698 ha

Plasma : 12,497 ha

Overview of Our Group’s Activities

Total capacity : 66,000 MT

Vessels : 6

Total Capacity : 13,500 MT

Kernel Crushing Plant : 2Total Capacity : 435 MT/day

ProductsProcessingPlantation

Total Production 2011 : 13,231 MT9M2012 : 8,441 MT

Total Production 2011 : 27,641 MT9M2012 : 10,746 MT

* Subject to final measurement

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Where We Are…

� Oil palm estate

� Oil palm estate with palm oil mill and kernel

crushing plant

� Palm oil mill

� Port and bulking terminal, Joint venture with Louis Dreyfus

Commodities

� Biomass power plant

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Phase 1

Oil Palm cultivation started in 1996 in Bangka island, Sumatra (1,215 ha). This was followed by the 2nd planting in 1998 in South

Kalimantan.

Phase 2

Started in 2004 in south and east Kalimantan with rapid planting programme. Total planted hectarage increased by about 5 times

(from phase 1)

Phase 3

Started in 2011 in Sulawesi. Expect to double up the total planted ha by 2018.

* By 9M2012: Approximately 58,195 ha of oil palms planted

Development of Oil Palm Plantations

Phase 1 Phase 2

Planted Area : Nucleus + Plasma (Ha)

Year of Planting Plasma Nucleus

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 9M2012

Plasma

Nucleus

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Potential Double-Digit FFB Production Growth

AGE DISTRIBUTION OF OIL PALMS (NUCLEUS)

% of Nucleus Planted

AGE PROFILE OF OIL PALMS (Ha)

Immature %Young Mature

%Prime Mature

% Total

Nucleus 22,035 48% 11,595 25% 12,068 27% 45,698

Plasma 3,795 30% 4,434 36% 4,268 34% 12,497

Total 25,830 44% 16,029 28% 16,336 28% 58,195

• RELATIVELY YOUNG PROFILE: 72% OF YOUNG AND IMMATURE PALMS

• POTENTIAL FOR STRONG DOUBLE-DIGIT PRODUCTION GROWTH OVER THE NEXT 5 YEARS

Weighted Average Age = 6.5 Years

0%

3%

6%

9%

12%

15%

18%

21%

17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1

FFB Yield Parameters & Assumptions Immature Young Mature Prime Mature

Oil Palm Age (years) 1-3 4 5 6 7-20

Average FFB yield (MT/ha) 0 5-6 10-12 16-18 22-28

Age/(Years)

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-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 9M 2012

FFB Production Trend (Nucleus)

• 2000 – 2011 CAGR = 28.3%

• 2012 onward – expect steady increase in production

MT

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Significant Land Bank for Future Planting

Total Land Bank 198,935 ha (including Plasma)

LandBank(ha)

PlantedArea(ha)

PlantedArea(%)

Nucleus 183,888 45,698 24.9

Plasma 15,047 12,497 83.0

Total 198,935 58,195 29.3

Planted Area : 29%

13%

8%

8%

71% Immature

Young Mature

Prime Mature

Unplanted Area

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Production Volume

9M 2011 9M 2012 Change 3Q 2011 3Q 2012 Change

FFB (MT)

- Produced from Nucleus 238,990 292,311 +22.3% 78,229 113,409 +45.0%

- Purchased from Plasma 88,368 91,685 +3.8% 22,110 36,262 +64.0%

- Purchased from other external

parties109,618 73,412 -33.0% 43,489 26,811 -38.3%

Crude Palm Oil (MT) 86,946 87,563 +0.7% 29,279 34,089 +16.4%

Crude Palm Kernel Oil (MT) 9,862 8,441 -14.4% 3,466 2,723 -21.4%

FFB Yield (MT/ha)-Nucleus 11.2 12.4 +10.7% 3.7 4.8 +29.7%

CPO Extraction Rates 20.5% 20.2% -1.5% 20.7% 19.9% -3.9%

CPKO Extraction Rates 41.5% 41.7% +0.5% 41.3% 41.5% +0.5%

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Sales Volume and Revenue (CPO & CPKO)

*) Others include sales of Kernel, Cake, FFB, and income from logistic and power generation

9M 2011 9M 2012 % change 3Q 2011 3Q 2012 % change

Sales Volume (MT)

- CPO 195,142 208,121 +6.7% 68,930 85,620 +24.2%

- CPKO12,561 9,126 -27.3% 7,895 3,854 -51.2%

Sales Revenue (USD’000)

- CPO 186,268 181,990 -2.3% 62,624 71,669 +14.5%

- CPKO 16,265 8,828 -45.7% 8,920 3,234 -63.8%

- OTHERS* 14,561 15,160 +4.1% 4,207 5,203 +23.7%

Average Sales Price (USD)

- CPO 950 880 -7.4% 910 840 -7.7%

- CPKO 1,290 970 -24.8% 1,130 840 -25.7%

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Financial Performance

USD’000 9M 2011 9M 2012 % Change 3Q 2011 3Q 2012 % Change

Revenue 217,094 205,978 -5.1% 75,751 80,106 +5.8%

Gross profit 29,061 26,637 -8.3% 7,399 10,493 +41.8%

Operating profit 19,562 9,536 -51.2% 3,146 3,929 +24.9%

Profit before tax 13,054 4,849 -62.9% 700 2,017 +188.1%

Net profit for the period

9,604 3,936 -59.0% 469 1,046 +123.0%

EBITDA 22,761 13,014 -42.8% 3,815 4,872 +27.7%

Gross margin (%) 13.4 12.9 -0.5pp 9.8 13.1 +3.3pp

Net Profit margin (%) 4.4 1.9 -2.5pp 0.6 1.3 +0.7pp

EBITDA margin (%) 10.5 6.3 -4.2pp 5.0 6.1 +1.1pp

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Balance Sheet

USD’000As at

31 Dec 2011

As at

30 September 2012Change

Current Assets 97,695 100,009 +2.4%

Non-current Assets 380,728 410,738 +7.9%

Total Assets 478,423 510,747 +6.8%

Current Liabilities 64,901 116,892 +80.1%

Non-current Liabilities 185,730 177,916 -4.2%

Total Liabilities 250,631 294,808 +17.6%

Shareholders’ Equity 227,792 215,939 -5.2%

Net Debt/Equity Ratio (%) 55.2 80.5 +25.3pp

Net Debt/Total Assets (%) 26.3 34.0 +7.7pp

Debt/EBITDA (x) 6.5 7.0 +0.5pp

EBITDA/Interest Expense (x) 3.0 2.8 -0.2pp

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Cash Flows

n/m = not meaningful

USD’000 1H 2011 1H 2012 Change 2Q 2011 2Q 2012 Change

Cash at beginning of period 24,216 29,880

Net cash (used in)/from

operating activities23,387 7,065

Net cash used in

investing activities(37,157) (24,989)

Net cash from

financing activities15,483 12,421

Net effect of

exchange rate changes in

consolidating entities

(410) 1,142

Net increase/(decrease)

in cash1,303 (4,361)

Cash at end of period 25,519 25,519

USD’000 9M 2011 9M 2012 Change

Cash at beginning of period 24,216 23,019 -5.0%

Net cash from operating activities 34,607 10,507 -69.6%

Net cash used in

investing activities(55,687) (50,159) +10.0%

Net cash from

financing activities14,542 28,252 +94.3%

Net effect of exchange rate

changes in consolidating entities490 1,517 +209.6%

Net decrease in cash (6,048) (9,883) -63.4%

Cash at end of period 18,168 13,136 -27.7%

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Updates and Future Developments

Updates:

New planted area (including plasma) of

approximately 3,300 ha in 9M 2012

4th palm oil mill with 45MT/hour capacity in East

Kalimantan is in operation

Additional land bank approximately 24,000 ha in

Central Sulawesi

Future Developments:

To maintain new planting of around 5,000-8,000

ha each year

To acquire more vessels to handle greater trading

volume

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Thank You