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Competitive Strengths

Significant cultivatable land bank with new planting potential

• We intend to increase our planted area from 24,349 hectares as at the Latest Practicable Date to over 80,000 hectares in the next five years

Potential benefits from maturing oil palms in the near future

• As at the Latest Practicable Date, approximately 50% of our planted area is immature. We expect the majority of these immature plants to mature from 2009 to 2010, thus helping to increase our FFB harvests, reduce our reliance on third party suppliers, lower our unit production cost and improve our average CPO extraction rates.

Proven and recognised track record in plantation cultivation and management

• We have an experienced and committed management team led by our Chairman and CEO, Mr Henry Maknawi
• Our management's track record is demonstrated by successful cultivation of all our current plantations from greenfield land
• We have received recognition from the provincial governments in the Sumatera and Kalimantan regions based on our management and administration of the Plasma Programme and social, economic and environmental considerations

Integrated value-chain resulting in operational synergies

• Our plantation operations consist of palm oil mills, kernel crushing plants, logistics services and bulking facilities, as well as renewable power generation capabilities
• We entered into an agreement with IOPRI to develop oil palm seed breeding and seed processing facilities
• Having our own bulking facilities and barges enables us to exercise better control over our logistics management and to meet customers' delivery requirements at short notice