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Page 1
DSNG
           INVESTOR
           NEWSLETTER                                                                                        Volume: 54 – July 2024


A Continuation of Solid Performance
After solid Q1 results to kick off 2024, PT Dharma Satya                    Furthermore, the Company’s profits increased
Nusantara Tbk continued its strong performance in Q2-                       significantly by more than 40% YoY to IDR 508 billion,
2024 with a total revenue of IDR 4.7 trillion for 1H-24,                    representing a profit margin of 11%, against 8% in 1H-
reflecting an increase of 8% YoY.                                           2023, despite a meaningful negative swing in the foreign
                                                                            exchange of around IDR 122 billion, from a gain of IDR 62
All business segments showed increasing revenue,                            billion in 2023 to a loss of IDR 61 billion in 2024. This forex
although the most significant contribution still came from                  swing was incurred following the accounting standard
the palm oil segment. The palm oil revenue amounted to                      requirement to translate foreign currency-denominated
IDR 4 trillion, an increase of 4% YoY, mainly supported by                  assets and liabilities using the prevailing Rupiah rate at
higher ASP. Meanwhile, the wood products segment also                       the reporting date. During 1H-24, the Rupiah depreciated
booked an increase in revenue by 11% YoY to IDR 0.6                         by 7% against the USD, resulting in the equivalent Rupiah
trillion despite a stagnant global market. Further, the                     value of our USD loan balance increasing, even though
Renewable Energy segment generated a revenue                                the actual USD loan balance declined by 12% during that
contribution of almost 300% YoY to IDR 0.1 trillion,                        period. Excluding this non-cash forex, we arrived at the
following higher export volumes and ASP.                                    core profit, which grew 78% yoy.

In addition to higher CPO ASP, lower fertilizer costs in 1H-                As of 30 June 2024, our USD-denominated loan balance
2024 also positively contributed to the higher profitability of             represented 20% of the total loans, with a total principal
the palm oil segment. Last year, fertilizer costs skyrocketed               repayment for 1H-24 of only around 25% of the USD-
due to geopolitical tension in Ukraine. Moreover, higher                    denominated income generated by our wood products
OER achievement this year and fewer FFB external                            and renewable energy segments for the same period,
purchases also increased profitability.                                     resulting in natural hedging.

Following higher revenue generation, EBITDA increased                       As we incurred no substantial capex during Q2-24, total
significantly by 33% YoY to IDR 1.4 trillion, given a                       assets, and liabilities in Q2-2024 grew very little against
satisfactory EBITDA margin of 29% in 1H-2024 against 24%                    Q1-2024, mainly correlating to forex translation
in 1H-2023.
                                                  In Million Rupiah                                                                  In Million Rupiah




                 DSNG Investor Newsletter —For further information, contact Investor Relations (investor.relations@dsngroup.co.id)
                 PT Dharma Satya Nusantara Tbk. Jl. Pulo Ayang Kav. OR No. 3 Kawasan Industri Pulogadung, Jakarta 13930 Indonesia
Page 2
PALM OIL
                                                                                                                             1H-2024       1H-2023                          %YoY                                           Q1-2024                                           Q2-2024          %QoQ           FY 2023
Plantation Performance
 FFB Production (tons)                                                                                                       1,046,075    1,044,981                                       0.1                                    524,592                                           521,484          (0.6)    2,271,821
 Nucleus (tons)                                                                                                                826,506      830,356                                      (0.5)                                   414,574                                           411,932          (0.6)    1,796,532
 Plasma (tons)                                                                                                                 219,569      214,625                                       2.3                                    110,018                                           109,552          (0.4)      475,289
Mill Performance
 FFB Processed (tons)                                                                                                        1,233,092    1,345,418                                      (8.3)                                   619,102                                           613,990          (0.8)    2,854,559
 CPO Production (tons)                                                                                                         296,518      304,335                                      (2.6)                                   149,550                                           146,968          (1.7)      661,892
 PK Production (tons)                                                                                                           56,204       55,524                                       1.2                                     28,311                                            27,893          (1.5)      122,732
 PKO Production (tons)                                                                                                          18,941       18,250                                       3.8                                      9,738                                             9,203          (5.5)       40,356
 CPO OER (%)                                                                                                                     24.05        22.62                                       6.3                                      24.16                                             23.94          (0.9)        23.19
 FFA (%)                                                                                                                          2.86         3.07                                      (6.9)                                      2.87                                              2.85          (0.7)         2.96
Sales Performance
 CPO (tons)                                                                                                                   292,032       298,563                                    (2.2)                                     145,800                                           146,232           0.3       665,041
 PK (tons)                                                                                                                     11,126        11,451                                    (2.8)                                       5,581                                             5,545          (0.6)       26,915
 PKO (tons)                                                                                                                    20,006        17,020                                    17.5                                        9,003                                            11,003          22.2        39,379
 CPO ASP (Rp 'million/ton)                                                                                                      12.22         11.83                                     3.2                                        11.74                                             12.69           8.1         11.39
 PKO ASP (Rp 'million/ton)                                                                                                      14.52         13.38                                     8.6                                        13.16                                             15.64          18.8         12.97

FFB production in Q2-2024 was only down by less than                                                                                                   Despite the reduction in external FFB purchases driving lower
1% against Q1-2024 despite fewer working days                                                                                                          FFB processing volume by 8%, the CPO production only
following the festive season Eid Mubarak in April 2024.                                                                                                shorted by 2.6% YoY due to higher OER from 22.62% to
Cumulatively, we recorded production of 1 million tons                                                                                                 24.05%. Likewise, both PK and PKO production increased
in 1H-2024, similar to 1H-2023, despite some impact                                                                                                    due to higher extraction rates. We maintained the FFA level
from the El Nino occurrence from 2H-2023 to early                                                                                                      below 3, resulting in super premium CPO.
2024.




 CPO PRODUCTION (TON)                                                                                                            2023    2024        FFB PRODUCTION (TONS)                                                                                                                      2023        2024
                                                                                                                                                               195,307
           56,051




                                                                                                                                                                                                                           176,751

                                                                                                                                                                                                                                               176,199

                                                                                                                                                                                                                                                                   168,534
                                                                                   50,101




                                                                                                                                                                                   166,011
                                                                 48,985




                                                                                                                                                                                                       163,274
                                                                                                     47,882
                             46,943

                                               46,556




                                                                                                                                                     182,096

                                                                                                                                                                         168,021

                                                                                                                                                                                             177,612

                                                                                                                                                                                                                 146,564

                                                                                                                                                                                                                                     190,247

                                                                                                                                                                                                                                                         180,441

                                                                                                                                                                                                                                                                             189,635

                                                                                                                                                                                                                                                                             200,576

                                                                                                                                                                                                                                                                             204,241

                                                                                                                                                                                                                                                                             219,994

                                                                                                                                                                                                                                                                             206,269

                                                                                                                                                                                                                                                                             206,124
  52,899

                    48,249

                                      50,905

                                                        41,210

                                                                          57,601

                                                                                            53,472

                                                                                                              53,788

                                                                                                              57,434

                                                                                                              58,366

                                                                                                              63,047

                                                                                                              61,513

                                                                                                              63,408
                                                                                                              -

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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


  CPO ASP (IDR '000/TON)                                                                                                                             KPB Medan 2023                                                                                KPB Medan 2024                              YTD DSN 2023
                                                                                                                                                     YTD DSN 2024                                                                                  DSN 2023                                    DSN 2024
                                                                                                                              12,858
                                                                                                                12,527
                                                                                            12,060
            12,015                        11,803                                                                                            12,616
                                                                                                                    12,488    12,038
                                                                                                                                                                                                                                                                                                                   11,394
                                                                                             12,014                                         10,958
                     11,481                                       11,642                                                                                                                                     10,929                                      11,135                      11,019                   11,308
                                                                                                                                                          10,510                                                                                                                                11,135

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

                                                         DSNG Investor Newsletter —For further information, contact Investor Relations (investor.relations@dsngroup.co.id)
                                                         PT Dharma Satya Nusantara Tbk. Jl. Pulo Ayang Kav. OR No. 3 Kawasan Industri Pulogadung, Jakarta 13930 Indonesia
Page 3
 OIL PALMS – PLANTED AREA
 The total combined nucleus and plasma planted
                                                                                                                            Planted Hectarage
 area as of 1H-2024 declined slightly compared to                                              Average
                                                                   Planted ('000 ha)                                    Mature         Total Planted
 the end of 2023, from 112.7k ha to 112.2k ha                                                  Age (yrs)
                                                                                                                       ('000 ha)          ('000 ha)
 following our replanting program. However, the
                                                                   Nucleus                        15.0                    82.2               84.2
 mature planted areas of the nucleus plantations
                                                                   Plasma                         12.1                    24.6               27.9
 increased from 81.5k ha to 82.2k ha following
                                                                   Total                          14.7                   106.8              112.2
 additional mature areas from our West Kalimantan
 Plantation.




                                          WOOD PRODUCTS
                                          During 1H-24, our panel products could still seize more market share in Japan,
                                          reflected by a 25% higher sales volume YoY, although at the expense of a lower ASP
                                          of 12%. However, the Japanese market is still challenging, as its yen currency has
                                          depreciated since the beginning of 2023, causing lower purchasing power for the
                                          Japanese market.

                                          Meanwhile, our Engineered Flooring products did not experience a significant drop
                                          in ASP due to the product mix. Still, their sales volume was lower by 13% YoY,
                                          reflecting the stagnant markets in the USA and Canada as the USD interest rate and
                                          inflation are still hovering high.



                                              1H-2024            1H-2023           %YoY          Q1-2024            Q2-2024          %QoQ          FY 2023
Sales Volume
 Panel ('000 m3)                                     55.5               44.4          25.1              27.8              27.7             (0.1)       99.5
 Engineered Flooring ('000 m2)                      308.5              354.6         (13.0)            147.1             161.4              9.8       738.5
Average Selling Price (ASP)
 Panel (USD/m3)                                    363.25            413.20          (12.1)          367.54             358.95             (2.3)     400.97
 Engineered Flooring (USD/m2)                       30.65             29.62            3.5            28.92              32.23             11.5       29.97


 RENEWABLE ENERGY
 During 1H-2024, the RE segment exported around 62 thousand tons of Palm
 Kernel Shells (PKS) with a 13% YoY higher ASP. As a result, this segment
 contributed a revenue of IDR 119 billion with a profit margin of more than 10%.




                                              1H-2024            1H-2023           %YoY          Q1-2024            Q2-2024          %QoQ          FY 2023
Sales Volume
 Palm Kernel Shell (ton)                          62,070             18,897          228.5           30,019             32,050              6.8      40,397
Average Selling Price (ASP)
 Palm Kernel Shell (USD/ton)                      121.00             107.03           13.1           121.00             121.00              -        113.35

                       DSNG Investor Newsletter —For further information, contact Investor Relations (investor.relations@dsngroup.co.id)
                       PT Dharma Satya Nusantara Tbk. Jl. Pulo Ayang Kav. OR No. 3 Kawasan Industri Pulogadung, Jakarta 13930 Indonesia
Page 4
LATEST UPDATES

 DSNG Collaboration with LPHD
 On 22 April 2024, DSNG signed a long-term collaboration with the
 Lemmanis Village Forest Management Institution (“Lembaga
 Pengelolaan Hutan Desa Lemmanis”/LPHD Lemmanis) to manage 6.9
 thousand ha village forest in Sepakat Jaya village, Ketapang Regency,
 West Kalimantan, for 25 years until 2049, relating to RSPO’s Remediation
 and Compensation Plan (RaCP).
 CFES (Community Forest Ecosystem Services) will assist the Company
 in providing technical and financing support for LPHD Lemmanis to
 implement the Social Forestry Work Plan (Rencana Kerja Pehutanan
 Sosial/RKPS), covering the improvement of Health and Education
 services in the form of free medical treatment and scholarships for
 students from the primary to university.




 Corporate Emission Reduction Transparency Award 2024
                                                 On 24 May 2024, DSNG received an award from Investor Trust and Bumi
                                                 Global Karbon (GBK), recognizing the Company’s efforts in Emission
                                                 Reduction and Transparency. DSNG won the highest award under two
                                                 categories: the Green Elite award for the verified emission reduction efforts
                                                 and the Platinum Plus award for the verified transparency category.

                                                 The Company follows GRI (Global Reporting Initiative) and TCFD (Taskforce
                                                 on Climate-Related Financial Disclosure) as the standard for sustainability
                                                 reporting, including ESG and climate risk.



 DSNG as the Constituents of Tempo-IDNFinancial Index 52 (Indeks52)

 DSNG has been selected for two consecutive years to become one of the
 Tempo-IDNFinancial Index 52 (Indeks52) constituents for the category of
 High Dividend. The awarding ceremony was held on Friday, 26 July 2024,
 in Balikpapan. The inclusion of DSNG in this Index demonstrates the
 growing financial performance of the Company throughout the past five
 years until June 2024.




  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. Pulo Ayang Kav. OR No. 3 Kawasan Industri Pulogadung, Jakarta 13930 Indonesia

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