Introduction to and Overview of

Sinar Mas

1

Shared corporate values

Integrity

Positive Attitude

Commitment

Continuous Improvement

Innovative

Loyal

“Be a man of integrity,

be responsible to your

family, job and society.” Eka Tjipta Widjaja

Our Founder

2

Explaining the Sinar Mas name

The name Sinar Mas means Golden Ray. It is inspired by the

golden ray shining endlessly, giving light and life.

Sinar Mas is a brand name that is used by companies that are independently

managed but share a common history and corporate values

3

1938

Our Journey

1968

1972

1982

1986

1996 2006

2013 2005

Eka Tjipta Widjaja

started his

entrepreneurial

journey in

Makassar at the

age of 15

Established

a soda chemical

factory, Tjiwi

Kimia which later

became Sinar

Mas’s first paper

factory

PT Dian

Swastatika

Sentosa was

founded to supply

electricity to

APP’s

manufacturing

facilities

PT Smart Telecom

was established

Sinar Mas to

celebrate its 75th

Anniversary

Built the first

copra cooking oil

refinery, BIMOLI,

Bitung Manado Oil

Ltd. In North

Sulawesi

PT Internas Artha

Leasing Company

was founded,

evolving into an

integrated

financial services

company

Sinar Mas

Forestry started to

manage its first

plantation forest

Bank Shinta was

acquired which

officially became

Bank Sinarmas in

2006

1930 1940 1950 1960 1970 1980 1990 2000 2010

1972

Started property

development

business with PT

Duta Pertiwi

1950s

Mr E. T. Widjaja

was successfully

trading vegetable

oils such as Copra

(coconut) and

palm oil

4

pulp and paper products real estate and development

telecommunications

All Sinar Mas businesses are committed to the highest business, environment and social

standards for sustainable, inclusive growth.

It is today one of Asia’s leading enterprises, consisting of 6 main business pillars and also

undertaking important initiatives in healthcare and education.

In total Sinar Mas creates 380,000 jobs and supports 500,000 additional jobs in Indonesia

Sinar Mas business pillars

5

Teguh Ganda Wijaya

Pulp & Paper

6

Asia Pulp and Paper, APP

One of the world’s

leading pulp and paper

producer

10 million tons of capacity per year

Pulp & Paper Mills in Indonesia

Zero-deforestation policy

Sales in more than 120 countries Source: Annual Report 2013, combined

data of producers under APP Brand

7

PROPER Recognitions 2013 – December 10th

Of APP as announced by the Minister of

Environment, Prof. Dr. Balthazar Kambuaya

Awards and recognition

Primaniyarta Award - Trade Ministry Award

For the most successful Exporting company

Green Industry Awards 2013 – November 26th

For Level 5 Category, the highest level by the

Minister of Industry, Mr. MS Hidayat

Non-Deforestation policy

announcement - 5 February 2013

Forestry Minister

8

Agribusiness & Food

Franky O. Widjaja

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Agribusiness & Food

6.6 billion $US in revenues

9% of Indonesia’s total output

471,000 HA planted (<5% of total area)

2.77 million tons of palm products

Among highest yield in the world:

5.6 Tonnes CPO per HA per year

Indonesia’s largest palm-

based agro-business is

committed to ensure

applying its Forest

Conservation Policy

throughout the supply chain Source: GAR Financial results 28Feb14

10

For a third year, SMART received the

Primaniyarta Award from the Ministry of

Trade of the Republic of Indonesia as an

extraordinary exporter.

Awards and recognition

Entrepreneur of The Year 2011

from Enterprise Asia

The Gold Standard Award for

Communicator of The Year 2012

was presented in Hong Kong

Representing Conservation

International, a reputable USA based

environment NGO, Harrison Ford met

with Pak Franky Widjaja to discuss GAR-

SMART's activities as a global front

runner on zero deforestation, sustainable

palm oil (SPO)

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Real Estate & Development

Muktar Widjaja

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New town development, resorts, hotels, industrial and commercial estates with projects in

Indonesia, China, Singapore and Malaysia. Some 10,000 hectares land bank in Indonesia

Sinar Mas Land : 2.8 billion $US in Assets, 563 million $US in Revenues (Annual Report 2013)

Real Estate & Development

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Awards and recognition

14

Financial Services

Indra Widjaja

15 Source: 2012 Annual reports

Integrated Financial Services

SM MultiFinance: 4 billion $US in assets, 1.5 billion $US in revenues

Bank Sinarmas: 1.4 billion $US in assets, 136.6 million $US in revenues

Multiartha employs 14,396 people and has

1,152 offices in Indonesia

#1 life and general insurance company

381 branch offices in 156 Indonesian cities

Source: Annual Report 2013

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“Best Sharia 2013

Category Total Asset < Rp 1 trillion“

Investor Magazine

Ranked 3rd

“Good Corporate Governance”

Anugerah Perbankan Indonesia

2013

Awards and recognition

Ranked 2nd

“Corporate Social Responsibility”

Anugerah Perbankan Indonesia

2013

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CDMA based wireless

connection focusing on

providing fast and secure

voice and data transfer

services in Indonesia

11 million subscribers

From 600 to 1,000 base transceiver stations in 2014

Best buy phone 2012 in Indonesia

Best CDMA phone 2012 and 2013 in Indonesia

Best CDMA operator 2012 and 2013 in Indonesia

Telecommunications

Source: Smartfren 2013

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DSS, Dian Swastatika Sentosa

4 Business groups:

-Mining & energy

-Chemical trading

-Infrastructure and

-Multimedia

Production of 5.3 million tons of coal, 1.3 million MWh electricity

1.2 Billion $US in Assets, 630 Million $US in Revenues

Building a 2 x 150 MW power plant (400 million $US)

Energy and Infrastructure

Source: Annual Report 2013, DSS

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DSS Strategy

Investments in renewable energies, incl. Bio-Fuel

Reduction of energy consumption

Maximising Green in, around all production sites

Good Corporate Governance (transparency, global

reporting initiative, whistleblowing system)

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Sinar Mas President Office

Gandi Sulistiyanto

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President Office

Coordinates, oversees and supports Diplomacy and Advocacy

activities of the business pillars

Business Pillars

President Director, Managing Directors Aligning Business

Objectives and Corporate Sustainability Values

Save the PLANET, Work Group (to organize, recommend and

carry out key Initiatives)

PROFIT & Growth for Better

Indonesia, Work Group (to organize,

recommend and carry out key Initiatives)

Board of Trustees

Shareholders. Final Approval of All Major Initiatives

Corporate Forum

Responsible to supervise the creation, implementation and communication of Sustainability Strategies and Values, as well

as the Integration of strategies and values into all the businesses

Serve the PEOPLE, Work Group (to organize, recommend and

carry out key Initiatives)

Advisory Board Enhance Global Credibility and

Presence

• Promote Education

• Support start-up businesses

•Community Empowerment

• Job Training

•Cooking Oil Bazaar (BMG)

• Wakaf Al Qur’an

•Protect Forests and support Reforestation

•Protect Wildlife and Indonesia’s Bio-diversity

•Enhance eco-friendly activities

• Promote, preserve Indonesia’s culture & art

• Museum of Sinar Mas founder ETW

Corporate organisation

• Involve Sinar Mas to develop global solutions

• Support bringing together Indonesian, regional

and global views and opinion leaders

•Promote Sinar Mas to lead research and debate

in critical economic, social, environmental topics

22

Environment Education Healthcare

Other initiatives supported

Others

Yayasan Buddha Tzu Chi

also provides assistance

incase of disaster, character

building (Cinta Kasih)

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Floating Clinic – Riau,

Sumatera

Agribusiness & Food

Real Estate & Development

Regularly created Cheap

Oil Bazaar

Financial Services

Clean river rehabilitation-

Cikapundung-Garut

Telecommunication

SMART Life – learning

education for internet

Social initiatives undertaken

Energy and Infrastructure

Literacy Training

at Banjarsari Village

Pulp & Paper

Urban Park – Taman Kota

In BSD

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Supports the education of children

SMART manages 104 primary,

secondary schools with over 21,000

students and 1,226 teachers.

We also subsidise government schools,

extending outreach to +35.000 students

Source: ETF and SMART Tbk May 2014

A responsible employer creating

jobs for sustainable livelihoods

380,000 jobs created directly

500,000 additional indirectly

Ensuring health & safety standards

Member of Global Compact, Sedex

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Sinar Mas is one of Asia’s leading businesses

Committed to the highest technical, environmental and social standards

Operating according to Good Corporate Governance principles