Financial Review
The following financial review is made from data in the year of 2012 with data in the year of 2011 proforma.

Revenue
Revenues increased by 49.97% from Rp399.57 billion in 2011 to Rp599.24 billion for the year 2012. The increase was mainly supported by the success of the Company in increasing the production of CPO. CPO sales volume increased by 59.57% from 43.160 tons in the year 2011 to 68.871 tons in the year of 2012, although the CPO sales average price of the Company experience the decrease 0.88% from Rp.7.207/kg to Rp7.144/kg.

Revenues increased by 49.97% from Rp399.57 billion in 2011 to Rp599.24 billion for the year 2012. The increase was mainly supported by the success of the Company in increasing the production of CPO.

Cost of Goods Sold
Cost of Goods Sold in 2012 increased by 91.58% from Rp238.60 billion in 2011 to Rp457.13 billion in 2012 mainly due to the increasing purchase volume of FFB raw material from the third party by 182.30% from Rp 69,68 billion in 2011 to Rp196,67 billion in 2012 and the increasing of direct cost of maintenance, harvesting and fertilizing by 68.56% from Rp92,53 billion to Rp155,97 billion in 2012 along with the area of Company's nucleus mature plantation which increase by 6.062 Ha to become 19.557 Ha.

Gross Profit
As a result mentioned above, the gross profit declined by 11.72% to Rp142,11 billion in the year 2012 from previously Rp160.97 billion in the year of 2011 and gross profit decreasing to 23.71% in the year of 2012 from previously 40.28% in the year of 2011.

Total Assets
The Company's total assets increased by 17.01% from Rp2,809.37 billion in the year of 2011 to Rp3,287.23 billion in the year of 2012, most of it due to the increasing of plantation and non-plantation fixed asset due to the Company's capital expenditure, new planting, maintenance of immature plantation and also the increasing of revaluation surplus to the Company's land and plantation fixed asset.

Total Liability
The liability increase by 37.74% from Rp1.73 billion in the year of 2011 to Rp2.40 billion in the year of 2012, mainly due to:

• Increase as :

• Other payables to PT Hamparan Karunia Nusantara for the purchase of shares of PT Alam Permai amounting to Rp492.93 billion;
• Deferred tax liability on revaluation surplus amounting to Rp231.03 billion;
• Long-term payables to Goddard Street Investment Pte. Ltd. amounting to Rp77.36 billion;
• Increase in bank debts amounting to Rp66,76 billion ;
• Reserves to anticipate the expenses which may occur in the process of the settlement of claim amounting to Rp55.54 billion;

• Decrease as :

• Repayment of loan to affiliated party in the Subsidiary amounting to Rp324,78 billion

Equity
Total equity decreased by 17.64% from Rp1,082.75 billion in the year of 2011 to Rp891.74 billion in the year of 2012, mainly due to:

• Decrease as :

• Differences in restructuring transactions between entities under common control that amounting to negative Rp365.62 billion;
• Loss for the year amounting to Rp83,30 billion;
• Capital proforma amounting to Rp233,86 billion;
• Other Comprehensive income amounting to Rp84,07 billion;

• Increase as :

• Capital subscription from the shareholders and the public through initial public offering amounting to Rp581,50 billion.

Utilization of Proceeds from Public Offering
The Company has listed its shares on the Indonesia Stock Exchange on October 8, 2012. Total funds received from Initial Public Offering after deducted with IPO cost were Rp290.18 billion. The funds will be used to:

• Approximately 85% (eighty five percent) will be used to finance capital expenditures of Subsidiaries related to activities of land acquisition in order to expand plantation areas, planting activity in palm oil plantations, maintenance of Immature Plantations, development of infrastructures and other supporting facilities, and construction of Palm Oil Mill.
• Approximately 15% (fifteen percent) will be used to finance working capital of Subsidiaries, such as purchasing FFB, raw material procurement, and other operational expenses. Until December 31, 2012, the Company has utilized funds amounting to Rp54.15 billion and the Rp236.03 billion remains in the Company in the form of current accounts and time deposits.