Disclaimer & Forward Looking Statements

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2 Disclaimer & Forward Looking Statements This presentation contains certain forward looking statements and forwardlooking financial information. Such statements and financial information are based on certain assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of PT BISI International Tbk. ( BISI or the Company ) to be materially different from those forecast. The inclusion of such statements and information should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions by the Company, or any other person, or that the forecast results will or are likely to be achieved. This presentation is for information purposes only and does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor should it or any part of it form the basis of, or be relied in any connection with, any contract or commitment whatsoever. 2

3 PT. BISI International, Tbk. Company Overview Indonesia s biggest producer of hybrid seeds for corn, rice, vegetables and fruit (horticulture), formulator pesticides and fertilizer Founded in 1983 by Charoen Pokphand Group ~ operating track record of 35 years Public listed since May 2007 Shandong, China Bangalore, India Farm Brastagi, 4ha Farm Metro, 12ha Farm Magelang, 5ha Farm Citapen, 5ha Farm Lombok, 8ha Farm Subang, 90ha Farm Lembang, 4ha Farm Kambingan, 12ha Farm Kencong, 12ha Farm Pujon, 2ha Farm Goblek, 5ha As a science-based company, BISI pioneered the hybrid seed breeding in Indonesia, with total research station base all around Indonesia +175 hectares 3

4 BISI Factory & Business Area Seed Processing: Unit 1: Sumber Agung, Kediri, East Java Unit 2: Tulung Rejo, Kediri, East Java Unit 3: Delanggu, Mojokerto, East Java Hybrid Corn Seed Vegetable Seed Pesticide & Fertilizer Formulation Plant: MSI Mojokerto, East Java Paddy Seed Pesticide & Fertilizer 4

5 BISI as a Science Based Company State of Art : Combination between Conventional Breeding & Biotechnology Advantages: More accurate/ precise Faster Higher capacity Research Collaboration Research collaboration with world class research institution in several countries R&D and Biotech Lab. Total breeders and researchers in R&D Dept. & Biotech Dept. is 104 persons (7 Doctoral Degree & 15 Master Degree) 5

6 Vertically-Integrated Seed Production Business Model Integrated Seed Production from Breeder Seed to Commercial Seed External Sales Pesticides & Fertilizers External Sales Commercial Seed Products Hybrid Corn Seeds Heterosis Hybrid Vigour Field Production Seed Processing Premium Pricing Foundation Seed Rice Seeds Higher Margins Contract Farming Breeder Seed Hybrid Fruits & Vegetables Seeds Labelling Authority High Quality Consistency 6

7 Contract Farming Program: Promoting Farmers Success Foundation seed Training, Support and Monitoring BISI Strict Standard Operating Procedures Contract Grower Routine inspections Technical support and assistance Step-by-step approach to 120-day farming cycle Farmer harvest supervised by BISI Contractual Agreement Testament to the Partnership between BISI and Contract Growers Actual 2017 Est Total Farmers: Total Area: hectares Total Farmers: Total Area: hectares 7

8 Opportunities in Indonesia 1. Indonesia s Government Policies about Food Sovereignty: Infrastructure Improvement Rehabilitation of irrigation Agriculture machineries Agriculture insurance Water reservoir New paddy fields Productivity Fertilizer subsidy Free corn seed and rice seed Supply & Price Control Rice and corn import restrictions Floor price and maximum price for corn and rice 2. Continuing GDP Growth (2017: 5,07%, est. 2018: 5,3%) Growth of middle class segment Consumption of chicken meat & egg increased year by year bigger demand for corn Consumption of vegetable and fruit increased significantly year by year (healthy lifestyle) 8

9 BISI 2017 Achievements 1. Acquisition of PT. Branita Sandhini corn seed processing plant (Monsanto Group) Total site: 8,47 hectares; building area: 3,3 hectares Production capacity: ton corn seed per year 9

10 BISI 2017 Achievements 2. Synergy Values: BISI has the right to sell 6 Monsanto s existing varieties (hybrid corn seed): 4 BISI brand & 2 DK (Dekalb) brand strengthen product portfolio Full access to Monsanto germplasm for further variety development Estimated additional sales volume: Additional Corn Seed Sales (tons) Additional Value (Rp Billion) tons (Jul-Dec) est.2019 est.2020 Sales Contribution: New Varieties vs. Total Corn vs. all BISI Products - Rp Billion Additional Corn Seed Sales Total Corn Seed Sales Total BISI Sales New Var vs Total Corn: 14% New Var vs all BISI: 6% New Var vs Total Corn: 24% New Var vs all BISI: 11% New Var vs Total Corn: 32% New Var vs all BISI: 13% Rp Billion 2017 est.2018 est.2019 est

11 Consistently Better & Suitable Hybrid Corn Variety ton Est ton BISI-228 BISI , Est.2018 Hybrid Corn Seed BISI -18 Hybrid Corn Seed BISI -226 & BISI -228 The New BISI Hybrid Corn Seed BISI -220: High productivity Start ready on October

12 Progress of Hybrid Paddy ton est Strong point of Intani new hybrids: Higher productivity More resistant and tolerant to diseases and insect attacks (F1 seed) Easier to produce Rice quality (taste & texture) similar with Ciherang (OP) and better than other F1 varieties F1 Intani -602 F1 Competitor OP Ciherang Characteristics Productivity F1 Competitor (xxxxx05) F1 Intani -602 OP Ciherang Yield Potency (tons/ha) 11,0 11,9 8,5 Yield Avg. (tons/ha) 7,5 9,2 6 Maturity (das) Lodging Medium Resistance Resistance Medium Resistance Rice Quality Rice Texture Soft Soft Soft Milling Degree (%) 64,1 66,9 66,2 Head Rice (%) 53,0 60,0 62,3 Disease Resistancy Bacterial Leaf Blight Resistance Resistance Medium Suspectible Ragged Stunt Virus Suspectible Resistance Suspectible Neck Blas Medium Resistance Resistance Medium Suspectible Planthopper Attacks at Sawo Dist., Ponorogo East Java March

13 Horticulture Seed: Continuous Product Improvement (1) 2017 Highlight: Horticulture seed sales decreased by 7,6% because there was a virus attack, especially for Melon crop 2018 BISI horticulture seed sales expected to grow with several new varieties that have virus / diseases tolerance: F1 Prima & F1 Golden Boy (Sweet Corn), F1 Srikandi (Waxy Corn), F1 Action-88, F1 Monalisa, F1 Action Orange (Melon) & F1 Naga Hijau (Bittergourd) Gemini Virus disease Buah Busuk (Anthracnose) Buah Busuk (Anthracnose) BISI F1 Colombus F1 Comp. X F1 Comp. X BISI F1 Trophy-77 BISI F1 Colombus vs. F1 Competitor X, Kediri East Java April 2018 BISI F1 Trophy-77 vs. F1 Competitor X, Kediri East Java March 2018

14 Horticulture Seed: Continuous Product Improvement (2) Melon F1 Competitor X BISI Melon F1 Action-88 Gemini Virus disease F1 Action-88 vs. F1 Competitor X, Nganjuk East Jawa, Mei

15 PT. Multi Sarana Indotani Multi Sarana Indotani (MSI) was established in 2003, focused on agrochemical product formulation. MSI has produced more than 100 kinds of pesticides such as; herbicide, fungicide, insecticide, rodenticide and more than 10 kinds of fertilizers such as foliar and liquid fertilizer, compound fertilizer Continuing last year s achievement, MSI is focusing on developing new products of pesticide and fertilizer related to food crops (rice and corn plantation) Total of Indonesia s pesticides market value + USD800 million per year 2018 new agrochemical product: Multitomil 40SP, Ragasa 500SC, Cyperban 590EC, Filimax 650SC, Crumble 100EC (pesticides) & Grand-K Merah (fertilizer) 15

16 2017: Established Market Share Fruit & Veg. Seed (Rp billion) ERA TANI ; 15 ; 2% KNOWN YOU ; 30 ; 4% Others ; 95 ; 12% Hybrid Corn Seed (tons) Others ; ; 20% PRIMA SEED ; 36 ; 4% TANI MURNI ; 30 ; 4% BISI ; 268 ; 33% AMP ; ; 2% BISI ; ; 49,5% SYNGENTA ; ; 7% MONSANTO ; ; 5% PIONEER ; ; 17% EAST WEST ; 330 ; 41% Pesticides (Rp billion) SYNGENTA ; ; 20% BAYER ; ; 16% Others ; ; 19% DOW ; 450 ; 5% BASF ; 600 ; 7% BISI ; 806 ; 9,5% FMC ; 550 ; 7% NUFARM ; 800 ; 9% DUPONT ; 650 ; 8% Source: Internal Marketing Department

17 2013 est.2018: Result of Operations Net Sales per Product Corn Seed Paddy Seed Horti Seed Pesticide Fertilizer 3000,0 Est. Growth 20% CAGR Est.2018: +17,5% Growth 25% , , Growth 1% 480,5 483,2 - Rp billion FY2013 FY2014 FY2015 FY2016 FY 2017 Est Q Q Net Income 600,0 500,0 400,0 300,0 200,0 100,0 Rp billion- Est. Growth 20% CAGR Est.2018: +25% Growth 20,8% Growth - 58% 76,2 32,8 FY2013 FY2014 FY2015 FY2016 FY 2017 Est Q Q Note: *) Data Result for Q Net Sales & Net Income is unaudited data report 17

18 Thank You