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20231030_DSNG_Laporan Informasi dan Fakta Material_31483234_lamp1.pdf

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DSNG
                       INVESTOR
                     NEWSLETTER                                                                                                                                                                                                                  Volume: 50 – October 2023

                                                                                                                                           In Million Rupiah
  DSNG Recorded Rp 6.6 Trillion Sales in                                                                                                    Profit and Loss                                                                 9M-2023                                       9M-2022                                                %             FY 2022
                                                                                                                                           Revenue                                                                            6,564,144   6,585,788                                                                             (0.3)          9,633,671
  the Third Quarter of 2023                                                                                                                - Palm Oil                                                                         5,771,429   5,398,674                                                                              6.9           8,117,134
                                                                                                                                           - Wood Product                                                                       792,715   1,187,114                                                                             (33.2)         1,516,537
  DSNG recorded sales in 9M23 amounted to Rp 6.6 trillion,
                                                                                                                                           Cost of Revenue                                                                  (4,923,284) (4,444,339)                                                                               10.8       (6,516,096)
  relatively the same as 9M22, with the palm oil segment
                                                                                                                                           Gross Profit                                                                       1,640,860   2,141,449                                                                             (23.4)         3,117,575
  contributing 88% to Rp 5.8 trillion, higher by 7% YoY. Total                                                                                                                                                                                                                                                                                      32.4
                                                                                                                                           - Margin (%)                                                                            25.0        32.5
  sales of all CPO products in 9M23 were higher than last                                                                                  Operating Profit                                                                     980,620   1,557,758                                                                             (37.0)         2,172,475
  year, following higher FFB production by 5.5% YoY and                                                                                     - Margin (%)                                                                           14.9        23.7                                                                                                 22.6
  combined with more external FFB purchases.                                                                                               Profit Before Tax                                                                    671.969   1,192,472                                                                             (43.6)         1,610,228
                                                                                                                                             - Margin (%)                                                                          10.2        18.1                                                                                                 22.6
  In addition, although OER was lower than the previous                                                                                    EBITDA                                                                             1.597.733   2,088,345                                                                             (23.5)         3,018,363
  year, the OER throughout 2023 has consistently improved                                                                                  - Margin (%)                                                                            24.3        31.7                                                                                                 31.3
  from quarter to quarter, with the OER in Q3-23 reaching                                                                                  Profit                                                                               504,338     897,637                                                                             (43.8)         1,206,587
  23.5%. This improvement of OER is also accompanied by                                                                                    - Margin (%)                                                                              7.7       13.6                                                                                                 12.5
  the improvement in the CPO's quality, as indicated in the                                                                                Core Profit                                                                          485.895     970.472                                                                             (49.9)         1,318,548
  FFA level of 3% against 3.82% last year.
                                                                                                                                           Financial Position                                                                           30 Sep 2023                                                           31 Dec 2022                                %
  Even though the Company still enjoyed a higher ASP at Rp                                                                                 Total Assets                                                                                               16,003,177                                                                15,357,229                    4.2
  11.5 million per ton compared to Rp 11 million last year,                                                                                Total Liabilities                                                                                           7,613,109                                                                 7,197,089                    5.8
  the cost of sales surged by 11% to IDR 4.9 trillion, mainly                                                                              Equity                                                                                                      8,390,068                                                                 8,160,140                    2.8
  driven by high fertilizer costs, resulting in a 24% drop in                                                                              premium quality products, sales quantities were still growing
  EBITDA and 44% in profit, respectively. And since the oil                                                                                quarter by quarter despite being 18% and 40% lower YoY,
  palm segment contributed around 88% to consolidated                                                                                      respectively, in comparison to 2022.
  revenue, the volatility in the fertilizer costs as part of the
  cost of revenue significantly affected our profitability.                                                                                DSNG's total assets grew by Rp 0.65 billion or 4% to Rp 16
                                                                                                                                           trillion, attributed to higher cash balance, inventories and fixed
  Meanwhile, the wood products segment performed                                                                                           assets from realization of capex. Total liabilities increased by 6%
  otherwise, with revenue in 9M23 decreased by 33% to Rp                                                                                   to Rp 7,6 trillion, partly due to the additional utilization of
  0.8 trillion. The higher-for-longer interest rate                                                                                        working capital loans and the foreign exchange translation effect
  environment has contributed to the slowing property                                                                                      on its USD denominated loans following the weakening of IDR
  markets in the USA, Canada, the EU and Japan, and                                                                                        against USD.
  consequently, low demand for wood products throughout
  2023. However, thanks to our cost leadership strategy and


    CPO PRODUCTION (TON)                                                                                                     2022   2023               FFB PRODUCTION (TONS)                                                                                                                                                    2022         2023
                                                                                                                                                                                                                                                                                                                      204.241
                                                                                                                                                                                                                                                                                                  200.576
                                                                                                                                                                                                                                      190.247




                                                                                                                                                                                                                                                                              189.635
                                                                                                                                                      182.096




                                                                                                                                                                                                                                                          180.441
                                                                                                                                                                                              177.612
                                                                                                                         58.366
                                                                 57.601




                                                                                                           57.434




                                                                                                                                                                          168.021
                                                                                             53.788
                                                                               53.472
         52.899



                                     50.905




                                                                                                                                                                                                                  146.564
                       48.249



                                                   41.210




                                                                                                                                            142.517

                                                                                                                                                                120.376

                                                                                                                                                                                    150.234

                                                                                                                                                                                                        157.276

                                                                                                                                                                                                                            153.118

                                                                                                                                                                                                                                                194.416

                                                                                                                                                                                                                                                                    202.127

                                                                                                                                                                                                                                                                                        224.952

                                                                                                                                                                                                                                                                                                            208.464

                                                                                                                                                                                                                                                                                                                                216.444

                                                                                                                                                                                                                                                                                                                                          222.896

                                                                                                                                                                                                                                                                                                                                                    220.901
    36.606

                  31.188

                                39.143

                                              42.354

                                                            43.046

                                                                          55.915

                                                                                        60.876

                                                                                                      68.864

                                                                                                                    63.057

                                                                                                                                  62.960

                                                                                                                                  66.126

                                                                                                                                  69.346




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       Jan Feb Mar Apr May Jun                                                            Jul         Aug Sep Oct Nov Dec                    Jan                 Feb Mar Apr May Jun                                                                                  Jul                Aug                 Sep                Oct       Nov Dec
Page 2
                                          9M-2023         9M-2022           %         Q1-2023          Q2-2023         Q3-2023          QoQ (%) FY2022
   Plantation Performance
   FFB Production (tons)                    1,639,434     1,553,480       5.5          527,730             517,251           594,453      14.9      2,213,698
   FFB Nucleus (tons)                       1,298,669     1,230,989       5.5          421,494             408,862           468,313      14.5      1,758,257
   FFB Plasma (tons)                          340,765       322,491       5.7          106,236             108,389           126,140      16.4        455,442
   Mill Performance
   FFB Processed (tons)                     2,067,002     1,914,155   8.0              678,640             666,777           721,585      8.2       2,809,177
   CPO Production (tons)                      473,923       441,048   7.5              152,053             152,282           169,588      11.4        639,480
   PK Production (tons)                        86,990        81,342   6.9               27,748              27,776            31,467      13.3        117,622
   PKO Production (tons)                       28,359        25,645 10.6                 9,101               9,149            10,109      10.5         37,970
   CPO OER (%)                                  22.93         23.04 (0.5)                22.41               22.84             23.50      2.9           22.76
   FFA (%)                                       3.00          3.82 (21.4)                3.30                2.85              2.88      1.4            3.78
   Sales Performance
   CPO (tons)                                  456,479      425,192   7.4              140,646             157,917           157,916        0        639,518
   PK (tons)                                    19,125       18,114   5.6                5,477               5,974              7,674     28.5        27,262
   PKO (tons)                                   26,975       23,704 13.8                 6,205              10,815              9,955     (8.0)       38,907
   CPO ASP (Rp ‘mio/Ton)                        11,50         11,07   3.9                11.97               11.71             10.88      (7.1)        11.18
   PKO ASP (Rp ‘mio/Ton)                        13,10         19,62 (33.2)               13.77               13.15             12.64      (3.9)        17.48

 Although 9M23 FFB production only increased by 5.5% YoY,                       Meanwhile, although the phenomenon of El Nino in 2023
 the Q3-23 FFB production of both nucleus and plasma                            can be visibly seen in many areas across Indonesia, its
 exhibited notable increases against the Q2-23 production,                      severeness in Kalimantan, where our operation estates are
 with nucleus production rising by 14.5% rise and plasma of a                   located, is less compared to the southern areas such as Java,
 16.4% increase QoQ. In addition, the Oil Extraction Rate                       Bali, Nusa Tenggara, South Sumatera, and Sulawesi. Thus,
 (OER) has also improved from 22.84% in Q2-2023 to 23.50%                       we expect the impact of El Nino on our 2024 production will
 in Q3-2023 but remained slightly lower than the results                        be milder than the previous El Nino.
 achieved in the same period last year at 23.04%.
 As a result, CPO, PK, and PKO production QoQ experienced
 higher yields, with increments of 11%, 13%, and 11%,
 respectively.
 CPO ASP (IDR '000/TON)                                                KPB Medan 2022                KPB Medan 2023              YTD DSN 2022
                                                                       YTD DSN 2023                  DSN 2022                    DSN 2023


                                         13.043                    12.940                                                        11.625             11.728
      12.015       11.803    12.060               12.487                                      10.929        11.015                                        11.504
                                11.906     12.488      12.038

         10.282                                                         10.958      10.510                    10.572      10.712                          11.070
                                                                                 10.027         10.388
                   9.141

   Jan            Feb       Mar          Apr        May          Jun            Jul          Aug           Sep         Oct          Nov             Dec


 PLANTED AREA                                                                                   Average
                                                                                                                      Planted Hectarage
 As of end of September 2023, the company’s total                      Planted (‘000 ha)                          Mature        Total Planted
                                                                                                Age (yrs)
 planted area, including nucleus and plasma, were                                                                (‘000 ha)        (‘000 ha)
 112.5 thousand hectares, with mature areas of 106                     Nucleus                     14.54                81.8             84.6
 thousand hectares and average age of 13.8 years.                      Plasma                      11.16                24.2                      27.9
                                                                       Total                       13.77               106.0                 112.5


DISCLAIMER: The views expressed here contain information derived from publicly available sources that have not been independently
verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward-looking
information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This
presentation should not be relied upon as a recommendation or forecast by PT Dharma Satya Nusantara Tbk. Nothing in this release
should be construed as either an offer to buy or sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

                    DSNG Investor Newsletter —For further information, contact Investor Relations (investor.relations@dsngroup.co.id)
                    PT Dharma Satya Nusantara Tbk. Jl. Rawa Gelam V Kav OR/3B Kawasan Industri Pulogadung, Jakarta 13930 Indonesia
Page 3
WOOD PRODUCTS
                                         9M-2023       9M-2022           %         Q1-2023       Q2-2023       Q3-2023       QoQ (%)        FY 2022
Sales Volume
Panel (‘000 m3)                               71,6          87,5        (18.2)          21,3          23,0         27,2              18.2      115.7
Engineered Flooring (‘000 m2)                554,6         930,7        (40.4)         165,7         188,8        200,0               5.9    1.117.0
Average Selling Price (ASP)
Panel ( Rp mio /m3)                           6,22          7.38        (15.8)           6.7           6.0           6.1              1.7      7.37
Engineered Flooring ( Rp mio /m2)             0.45          0.44             4.1        0.48          0.43         0.46               6.4      0.44

                                                      During the past nine months, the sales volume of panels has consistently
                                                      increased every quarter. In Q3-2023, the panel sales volume saw a rise of
                                                      18.2% compared to Q2-2023. Similarly, flooring sales increased marginally by
                                                      5.9% in Q3 compared to Q2 of this year. This positive quarterly trend was also
                                                      accompanied by improved average selling prices (ASP), with panel ASP
                                                      increasing by 1.7% and flooring ASP increasing by 6.4% QoQ.

                                                      However, on an annual basis, the sales volume has not demonstrated its best
                                                      performance. Panel products experienced an 18% decline in sales volume due
                                                      to reduced exports to Japan. Likewise, a similar trend was observed in
                                                      engineered flooring products, with a year-to-date (YTD) production decrease of
                                                      approximately 40%, influenced by a decreasing demand from the United States
                                                      and Canada.

                                                      To support our strategy for future product expansion, we have distributed over
                                                      a million Jabon tree seedlings to local farmers as part of our Hutan Rakyat
                                                      Program. This program will enable us to gain access to raw materials supply for
                                                      our future products while promoting sustainable use of wood resources.
                                                      Moreover, the Company aims to establish a sustainable supply chain by actively
                                                      assisting farmer groups in producing sustainable wood products.

LATEST UPDATE


                                                     DSNG was acknowledged as one of the top 50 companies in the Mid
                                                     Capitalization category for effectively implementing Good Corporate
                                                     Governance (GCG) principles. The assessment was conducted by the Indonesia
                                                     Institute for Corporate Directorship (IICD).

                                                     The award aimed to encourage more Indonesian companies to enhance their
                                                     competitiveness through Corporate Governance implementation aligned with
                                                     the principles of the ASEAN CG Score Card.




DISCLAIMER: The views expressed here contain information derived from publicly available sources that have not been independently
verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward-looking
information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This
presentation should not be relied upon as a recommendation or forecast by PT Dharma Satya Nusantara Tbk. Nothing in this release
should be construed as either an offer to buy or sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

                 DSNG Investor Newsletter —For further information, contact Investor Relations (investor.relations@dsngroup.co.id)
                 PT Dharma Satya Nusantara Tbk. Jl. Rawa Gelam V Kav OR/3B Kawasan Industri Pulogadung, Jakarta 13930 Indonesia

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