1Q17 RESULT PRESENTATION Jakarta, 28 April 2017 1Q17 Results - - PowerPoint PPT Presentation

1Q17 RESULT PRESENTATION

Jakarta, 28 April 2017

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1Q17 Results Presentation, 28 April 2017

Highlights 1Q17

• Inflation rate increased from 3.02% YoY (FY16) to 3.61% (1Q17)
• Rupiah strengthened from 13,436 (FY16) to closing at 13,321 (1Q17)
• CPO prices (CIF Rotterdam) strengthened from US$ 627 / MT (1Q16)

to US$ 775 / MT (1Q17)

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1Q17 Results Presentation, 28 April 2017

954 894 842 706 723 669 662 652 638 528 552 561 683 704 672 771 756 810 734

Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17

Monthly Average CPO Price (CIF Rotterdam)

Source : Oil World (in US$/Ton)

CPO Price

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1Q17 Results Presentation, 28 April 2017

Financial Performance

1) Attributable to equity holders of the parent entity 2) Returns represent total return including non-controlling interests 3) Trailing

Rp Bn 1Q16 1Q17 Growth 1Q16 1Q17 Net Sales 16,515.8 17,834.9 8.0% Gross Profit Margin 27.9% 30.1% Cost of Goods Sold (11,901.6) (12,464.3) 4.7% EBIT Margin 11.4% 14.5% Gross Profit 4,614.2 5,370.5 16.4% EBITDA Margin 15.1% 18.1% Selling & distribution expenses (1,859.3) (1,919.2) 3.2% Net Income Margin 1) 6.6% 6.8% General & administrative expenses (863.0) (890.1) 3.1% Other operating income 136.6 170.9 25.1% EPS 1) 124 137 Other operating expenses (149.5) (144.5)

• 3.4%

Income From Operations (EBIT) 1,878.9 2,587.6 37.7% ROA 2) 3) 4.5% 6.4% EBITDA 2,487.4 3,233.8 30.0% ROE 2) 3) 9.5% 12.5% Finance income 373.5 193.6

• 48.2%

ROCE 2) 3) 10.6% 12.8% Finance expenses (408.1) (324.1)

• 20.6%

Final tax on interest income (35.2) (30.3)

• 13.8%

Share in net loss of associates (78.4) (70.0)

• 10.8%

Income Before Income Tax Expense 1,730.7 2,356.8 36.2% Income tax expense (468.2) (594.7) 27.0% Income for the period from continuing operations 1,262.4 1,762.1 39.6% Income for the period from a discontinued operation 100.8 0.0

• 100.0%

Income for the period 1,363.2 1,762.1 29.3% Equity holders of the parent entity 1,085.5 1,204.9 11.0% Non-controlling interests 277.7 557.2 100.6% Core Profit 1) 1,016.6 1,190.1 17.1%

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1Q17 Results Presentation, 28 April 2017

1,891.8 245.4 160.7 576.4 8.2 2,561.2

1Q16 CBP Bogasari Agribusiness Distribution 1Q17

16,515.8 339.6 204.7 1,137.3 46.9 17,834.9

1Q16 CBP Bogasari Agribusiness Distribution 1Q17

Changes in Sales and EBIT

Sales (Rp Bn) EBIT (Rp Bn) *

* After elimination and before unallocated expenses (other operating income and other operating expenses)

+ 1,319.1 + 669.4

( ) ( )

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1Q17 Results Presentation, 28 April 2017

1Q16 1Q17 1Q16 1Q17

Distribution Agribusiness Bogasari Consumer Branded Products

Segment Contribution

Sales (Rp Bn) 1) EBIT (Rp Bn) 2)

1) After elimination 2) After elimination and before unallocated expenses (other operating income and other operating expenses)

16,515.8 17,834.9 51.9% 23.8% 16.4% 7.9% 50.0% 20.9% 21.6% 7.5% 63.2% 24.0% 11.2% 56.3% 11.4% 30.8% 1.5% 1,891.8 2,561.2 1.6%

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1Q17 Results Presentation, 28 April 2017

CBP

Sales (Rp Bn) EBIT (Rp Bn)*

* Before elimination and unallocated expenses (other operating income and other operating expenses)

Sales Growth 4.0% EBIT Growth 19.3%

8,621.0 8,964.2

1Q16 1Q17

1,196.4 1,426.9 13.9% 15.9%

1Q16 1Q17

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1Q17 Results Presentation, 28 April 2017

Bogasari

Sales (Rp Bn) EBIT (Rp Bn)*

* Before elimination and unallocated expenses (other operating income and other operating expenses)

Sales Growth

• 7.0%

Volume Growth (Food Flour) 4% EBIT Growth

• 32.5%

4,947.9 4,600.2

1Q16 1Q17

453.5 306.1 9.2% 6.7%

1Q16 1Q17

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1Q17 Results Presentation, 28 April 2017

Agribusiness

Sales (Rp Bn) EBIT (Rp Bn)*

* Before elimination and unallocated expenses (other operating income and other operating expenses)

Sales Growth 39.7% EBIT Growth 272.4%

3,138.7 4,383.8

1Q16 1Q17

211.6 787.9 6.7% 18.0%

1Q16 1Q17

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1Q17 Results Presentation, 28 April 2017

Distribution

* Before elimination and unallocated expenses (other operating income and other operating expenses)

Sales (Rp Bn) EBIT (Rp Bn)*

Sales Growth 3.6% EBIT Growth 26.8%

1,298.2 1,345.1

1Q16 1Q17

30.8 39.0 2.4% 2.9%

1Q16 1Q17

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1Q17 Results Presentation, 28 April 2017

Financial Position

Note: * Including Trust Receipts: US$90.7 Mn (FY16) and US$31.9 Mn (1Q17)

Rp Billion FY16 1Q17 Growth Cash & Cash Equivalent 13,362.2 13,302.4

• 0.4%

Total Assets 82,174.5 84,697.5 3.1% Total Equity 43,941.4 45,874.9 4.4% Total Funded Debt 22,422.1 22,673.8 1.1%

• Fcy (in US$ mn) *

620.8 600.1

• 3.3%
• Rupiah

14,080.9 14,679.8 4.3% Rp Billion FY16 1Q17 Growth Short Term Debt & Trust Receipt 6,916.6 7,766.6 12.3% Current Maturities 3,617.6 3,210.1

• 11.3%

Long Term Debt 11,887.9 11,697.1

• 1.6%

Total Funded Debt 22,422.1 22,673.8 1.1%

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1Q17 Results Presentation, 28 April 2017

Debt Composition

Times FY16 1Q17 Gross Gearing 0.51 0.49 Net Gearing 0.21 0.20 Interest Coverage Ratio * 6.9 7.8

37.2% 35.3% 62.8% 64.7%

FY16 1Q17

Foreign Currency Debt Rupiah Debt

* Trailing for 1Q17 figure

47.0% 48.4% 53.0% 51.6%

FY16 1Q17

Short Term & T/R Long Term Debt

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1Q17 Results Presentation, 28 April 2017

Cash Flow

* Cash & Cash Equivalents – Beginning & End after taking into account overdraft

Rp Billion 1Q16 1Q17 Net Cash Provided by Operating Activities 430.9 268.6 Net Cash Used in Investing Activities (1,488.9) (1,484.3) Net Cash Provided by Financing Activities 1,131.9 1,190.2 Net Effects of Changes in Exchange Rates on Cash & Cash Equivalents (171.6) (34.2) Net Decrease in Cash & Cash Equivalents (97.7) (59.8) Cash & Cash Equivalents at Beginning of Period * 12,962.0 13,362.2 Cash & Cash Equivalents at End of Period * 12,864.4 13,302.4

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1Q17 Results Presentation, 28 April 2017

Capital Expenditure Budget

Group Budget 17 CBP 4,621 Bogasari 1,976 Agribusiness 2,054 Distribution 441 Total 9,091

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1Q17 Results Presentation, 28 April 2017

APPENDIX

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1Q17 Results Presentation, 28 April 2017

1) Food Flour only 2) EBIT margin per segment: Before elimination and unallocated expenses

Segment Performance: Indofood

Division Sales (Rp Bn) Volume 1) EBIT (Rp Bn) EBIT Margin 2) 1Q16 1Q17 Growth Growth 1Q16 1Q17 Growth 1Q16 1Q17 Consumer Branded Products 8,621.0 8,964.2 4.0% 1,196.4 1,426.9 19.3% 13.9% 15.9% Bogasari 4,947.9 4,600.2

• 7.0%

4% 453.5 306.1

• 32.5%

9.2% 6.7% Agribusiness 3,138.7 4,383.8 39.7% 211.6 787.9 272.4% 6.7% 18.0% Distribution 1,298.2 1,345.1 3.6% 30.8 39.0 26.8% 2.4% 2.9% Total 18,005.8 19,293.4 7.2% 1,892.2 2,559.8 35.3% Elimination (1,490.0) (1,458.5) (0.4) 1.4 Unallocated Income (Expenses) (13.0) 26.4 Net 16,515.8 17,834.9 8.0% 1,878.9 2,587.6 37.7% 11.4% 14.5%

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1Q17 Results Presentation, 28 April 2017

Division Sales (Rp Bn) Volume EBIT (Rp Bn) EBIT Margin ¹⁾ 1Q16 1Q17 Growth Growth 1Q16 1Q17 Growth 1Q16 1Q17 Noodles 5,963.2 6,120.1 2.6% 0% 958.3 1,167.7 21.8% 16.1% 19.1% Dairy 1,702.9 1,858.7 9.1% 11% 315.2 287.4

• 8.8%

18.5% 15.5% Snack Foods 567.2 759.0 33.8% 43% 42.4 54.8 29.2% 7.5% 7.2% Food Seasonings 308.2 394.4 28.0% 10% 27.3 29.7 9.1% 8.9% 7.5% Nutrition & Special Foods 156.6 173.7 10.9% 10% 7.3 8.3 13.3% 4.6% 4.7% Beverages 463.0 405.1

• 12.5%
• 7%

(51.4) (63.9)

• 24.3%
• 11.1%
• 15.8%

Elimination (238.9) (252.9) (1.9) 2.1 Unallocated Income (Expenses) 34.4 30.4 Net 8,922.1 9,458.1 6.0% 1,331.5 1,516.4 13.9% 14.9% 16.0%

Segment Performance: ICBP (based on ICBP figures)

1) EBIT margin per segment: Before elimination and unallocated expenses

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1Q17 Results Presentation, 28 April 2017

Division Sales (Rp Bn) Volume EBIT (Rp Bn) EBIT Margin ¹⁾ 1Q16 1Q17 Growth Growth 1Q16 1Q17 Growth 1Q16 1Q17 Plantations 1,803.0 2,774.6 53.9% 146.3 791.8 441.3% 8.1% 28.5% CPO 6% PK, PKO, PKE 23% Sugar

• 48%

Rubber 6% Edible Oils & Fats 2,080.2 2,682.9 29.0% 123.8 70.5

• 43.1%

6.0% 2.6% Elimination (736.1) (1,056.6) (42.0) (38.0) Unallocated Income (Expenses) (44.6) (40.3) Net 3,147.0 4,400.8 39.8% 183.5 784.0 327.2% 5.8% 17.8%

Segment Performance: Agribusiness (based on SIMP figures)

1) EBIT margin per segment: Before elimination and unallocated expenses

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1Q17 Results Presentation, 28 April 2017

Oil Palm Plantations Profile

* Mainly industrial timber, cocoa and tea

Combined Plantations Area as of Mar 31, 2017

In Hectar 31 Dec, 2016 31 Mar, 2017 Increase/ (Decrease) Nucleus Total Planted Area 300,536 300,646 110 Planted Oil Palm 247,430 247,234 (196)

• Mature

203,501 208,722 5,221

• Immature

43,929 38,512 (5,417) Other Crops

• Rubber

20,115 19,968 (147)

• Sugar

13,249 13,587 338

• Others*

19,742 19,857 115

Immature, 16% 4 - 6 yrs, 7% 7 - 20 yrs, 49% Over 20 yrs, 28%

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1Q17 Results Presentation, 28 April 2017

Plantation Highlights

1Q16 1Q17 Growth Planted Area (Ha) (Nucleus) 246,132 247,234 0.4% Mature Area (Ha) 193,496 208,722 7.9% FFB Production (Ths MT) (Nucleus) 639 743 16.2% FFB Yield (Nucleus) (MT/Ha) 3.3 3.6 CPO Production (Ths MT) 186 208 11.5% CPO Extraction Rate (%) 22.5 21.9 PK Production (Ths MT) 44 51 16.3% PKO & PKE Production (Ths MT) 11 5

• 52.4%

PK Extraction Rate (%) 5.3 5.3

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1Q17 Results Presentation, 28 April 2017

Disclaimer

This presentation was prepared solely and exclusively for the parties presently being invited for the purpose of discussion. Neither this presentation nor any of its content may be reproduced, disclosed or used without prior written consent of PT Indofood Sukses Makmur Tbk (“Company”). The Company is not responsible or liable for any decisions made by investors or analysts based on the information provided in this presentation.

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