Continuously improving the quality of life - sidomuncul.com · with CPOB & CPOTB standard and also equipped with ISO standard facilities. 2000 Conducted initial public offering with

Continuously improvingthe quality of life

COMPANY UPDATE 3M’19PT INDUSTRI JAMU DAN FARMASI SIDO MUNCUL TBK

2

Table of contents

Company OverviewI

Operational Highlights & Financial PerformanceII

Company Guidance 2019III

AppendixIV

Continuously improving the quality of life

Company Overview

The biggest herbal medicine manufacturer in Indonesiawith more than 70 years experience

As of Mar 2019, SIDO marketcapitalization is IDR 15.15 trillion

3 business segments withcomprehensive product portfolio:• Herbal & Supplement• Food & Beverages• Pharmaceutical

4 subsidiaries :• Muncul Mekar ~ Trading• Semarang Herbal Indo Plant ~ Herbal

Extraction• Berlico Mulia Farma ~ Pharmaceutical• Muncul Nigeria Ltd ~ Trading

Founded by Mrs. Rakhmat Sulistioin 1940 with the first formula ofJamu Tolak Angin. In 1951, acompany SIDO MUNCUL wasestablished

Shareholder composition:PT Hotel Candi Baru: 81%Public: 19%**Treasury shares: 0.8% (115mn shares)

Dec 2013, Initial Public Offering withissue price of IDR 580 per share.Ticker code: SIDO

4

SIDO booked strong performance in 3M’19 with doubledigit earnings growth

Net Sales+ 15.0% y.o.y

Net Profit After Tax+ 23.5% y.o.y

Declared cash dividends of IDR 36 pershare (80% payout).• IDR 15 per share interim (Nov’18)• Remaining IDR 21 per share (May’19)

APR2019

First Shipment to Nigeria under MunculNigeria Ltd

MAR2019

Commercial production of COD II (newliquid herbal facility)

FEB2019

Financial and Key Event Highlight

Sales Mix

Herbal &Supplement

(68%)Food &

Beverages(27%)

Pharmaceutical(5%)

5

Comprehensive range of products with strong brand equityand awareness among Indonesian consumers

HERBAL &SUPPLEMENT

FOOD &BEVERAGES PHARMACEUTICAL

6

Expanding the business beyond the bordersIntroducing Indonesian heritage products to the world

Indonesia:Extensive distributionnetwork with 122 sub-distributors nationwide

PhilippinesBranch Office

MunculNigeria Ltd

7


Operational Highlight & Financial Performance

Maximizing utilization rate of the new Liquid Herbal facility(COD II) as the facility has commercialized

9

• Capacity 100mnsachets per month

• New technology,modern, andcomputerized toprevent productionerror

• Integrated andautomatic productionprocess from mixingup-to packaging

Increase market export contribution of total consolidatedsales

10

• Established Muncul Nigeria Limited and receivedcertificate of product registration from NAFDAC in2018

• First shipment of KBE under Muncul Nigeria inMar’19, earlier than initial schedule on 2nd

semester

• First shipment of TOLAK ANGIN in Oct’18• Available in 7/11 Philippine, Mercury Drugs,

South-Star Drugs, and Watsons• Expanding point of sales by add more MT

channel• Marketing activities both ATL and BTL to boost

brand awareness and salesTV CommercialSampling & Events Digital Media

%Sales Prop.(Domestic : Export)

Domestic

98%Domest

ic94%

Export2% Export

6%

Q1'18 Q1'19Sampling

Financial performance – 3M’19

11

(IDR Billion – Unaudited)

Revenue was recorded higher yoy, driven by strong performance on Herbal &Supplement both in domestic and export market.

Export contributed 6% in Q1’19 supported by strong performance of TA inPhilippines and KBE shipment to Nigeria earlier than initial schedule.

Operating profit was higher by 24% align with the gross profit due to sales mixdriven by higher Herbal & Supplements contribution (Q1’19: 68% vs. Q1’18: 66%).

SIDO recorded continued growth in Q1’19, with top-line increased 15% andNPAT higher by 24% vs LY

242(59%)

315(65%)

56(30%)

54(28%)8

(29%)

9(28%)

Q1'18 Q1'19

408(66%)

488(68%)

187(30%)

194(27%)

26(4%)

32(5%)

Q1'18 Q1'19

All Business segments recorded higher top-line comparedto last year

12Herbal & Supplements Food & Beverages Pharmaceuticals

%Growth

+19.7%

+3.8%

+21.1%621

714

SALES(%Proportional)

+15.0%

306(49%)

378(53%)+23.6%

GROSS PROFIT(%Margin)

+30.4%

-4.6%

+17.1%

%Growth

(IDR Billion – Unaudited)

143

225

400

49

150

2016 2017 2018 Q1'19

1,002903

806912

2016 2017 2018 Q1'19

25 2629

36

85% 82% 81% 80%

2015 2016 2017 2018

Healthy financial position with no debt and high dividendpayout(IDR Billion – 2016-18(Au) & Q1’19 (Un)) Capital Expenditure

Payout Ratio

Dividend Per Share

Cash & Cash Equivalents

*

13• IDR 15/share distributed on Nov’18 as interim dividend• IDR 21/share will be distributed on May’19.

*

TargetCAPEX ‘19


Company Guidance 2019

Striving for growth by maximizing SIDO competencies

15

• Utilizing new Liquid Herbalproduction facility (COD II) withcapacity of 100mn sachet permonth

Key Initiatives 2019 Financial Guidance 2019

• Increasing export sales contributionand developing other potentialexport countries

• Market penetration in EasternIndonesia, with product availabilityenhancement and below-the-lineactivities

• Enhancing service level in moderntrade channel

• e-procurement implementation• Maximizing digital media for promo,

advertising, and e-commerce

SIDO targets to growat least 10% on theTop-line and Bottom-line.


Appendix

SIDO Structure

PT INDUSTRI JAMU DAN FARMASISIDO MUNCUL TBK

PT HOTEL CANDI BARU(81.0%)

*PUBLIC(19.0%)

MunculMekar SHI Berlico Muncul

Nigeria

99.99% 99.99% 99.99% 99.99%

*SIDO owns 0.8% (115mn shares) from share buyback program

PT Muncul Mekar

The commencement ofoperation:

1987

Business activities:Trading

PT Berlico Mulia Farma


1993

Business activities:Pharmaceutical

Muncul Nigeria Limited


2018

Business activities:Trading

17

PT Semarang Herbal Indo Plant


2009

Business activities:Herbal Extraction

Experienced management team with proven track records in thebusiness and industry

PresidentCommissionerJonatha SofjanHidajat

>40 yearsexperience inherbal business

Board of CommissionersCommissionerJohan Hidayat


CommissionerSigit Hartojo HadiSantoso


IndependentCommissionerEric Marnandus

Also serves asExecutive Directorat Affinity Indonesia

IndependentCommissionerRonnie Behar

Also serves asPartner and Headof Southeast Asia atAffinity

Board of DirectorsPresident DirectorDavid Hidayat

>35 years experiencein herbal business,expertise in operational

DirectorIrwan Hidayat

>40 years experiencein herbal business,expertise in marketing

DirectorLeonard

>15 years experiencein finance as CFO andgroup controller inreputable companies

DirectorGerry Mustika

>20 years experienceas head of sales,distribution, andmarketing in multi-national companies

1940 - 1951

Founded by Mrs.Rakhmat Sulistio in1940 with the firstformula of JamuTolak Angin. In 1951,the company SIDOMUNCUL wasestablished

1984

Modern productionfacility was installed Inorder to accommodatethe growing marketdemand. The productionfacility was inLingkungan IndustriKecil, Semarang.

The inauguration of newfactory in an area of30ha, located in Klepu,with CPOB & CPOTBstandard and alsoequipped with ISOstandard facilities.

2000

Conducted initial publicoffering with the issueprice of Rp580 pershare, ticker code:SIDO.

2013

Acquisition of PTBerlico MuliaFarma, expandingSido Muncul’sbusiness in thepharmaceuticalindustry

2014

Commercialization thenew extraction facilitiesof PT SemarangHerbal Indo Plant, withincrement of extractioncapacity and more

efficient.

2017

Finalization of the newherbal liquid productionfacilities, more modern,integrated, with capacityup to 100mn sachets permonth

2018

Milestones

Number of awards and achievements for category of brand,business innovation, also social and environmental responsibility

19

SIDO received GreenProper (Lv.5) from Ministryof Environment andForestry with the highestbenchmark score underHerbal, F&B, and ConsumerGoods category

Innovation in wastetreatment:• Using waste of herbal

extraction as biomassenergy and fertilizermaterials

• Processing ginger pulpwaste into gingeressential oil

P/L Statement – 3M’19

20

IDR Billion - Unaudited Q1'19 Q1'18 ∆ %gr.SALES 713.7 620.8 92.8 15.0%COST OF GOODS SOLD (335.6) (315.0) (20.7) 6.6%GROSS PROFIT 378.1 305.9 72.2 23.6%%Margin 53.0% 49.3% 3.7%

Selling & Marketing Expenses (76.5) (58.8) (17.7) 30.2%General & Administrative Expenses (44.8) (40.6) (4.2) 10.3%Other Operational Expenses / Incomes 3.7 3.4 0.3 8.2%OPERATING PROFIT 260.5 209.9 50.5 24.1%%Margin 36.5% 33.8% 2.7%

Finance Income 14.2 11.2 3.0 26.7%Finance Cost (0.0) (0.0) 0.0 -16.2%PROFIT BEFORE INCOME TAX EXPENSES 274.6 221.1 53.5 24.2%%Margin 38.5% 35.6% 2.9%

Income Tax Expense - Net (65.8) (52.0) (13.7) 26.4%PROFIT FOR THE YEAR 208.9 169.1 39.8 23.5%%Margin 29.3% 27.2% 2.0%


DisclaimerThis presentation was prepared solely and exclusively for discussion purposes. This presentation and/or any partthere of may not be reproduced, disclosed or used without the prior written consent of PT INDUSTRI JAMU DANFARMASI SIDO MUNCUL TBK (SIDO or the Company).

This presentation, as well as discussions arising there from, may contain statements relating to future expectationsand/or projections of the Company by its management team, with respect to the Company. These statements aregenerally identified by forward-looking words such as “believe”, “expect”, “may”, “will”, “plan”, “estimate”,“anticipate”, or other similar words. These statements are presented on the basis of current assumptions which thecompany’s management team believes to be reasonable and presumed correct based on available data at the timethese were made, based on assumptions regarding the Company’s present and future business strategies, andsubject to certain factors which may cause some or all of the assumptions not to occur or cause actual results todiverge significantly from those projected. Any and all forward looking statements made by the Company or anypersons acting on its behalf are deemed qualified in their entirety by these cautionary statements.

This presentation is solely for informational purposes and should in no way be construed as a solicitation or an offerto buy or sell securities or related financial instruments of the Company.

PT INDUSTRI JAMU DAN FARMASI SIDO MUNCUL TBK

HEAD OFFICE:Gedung Menara Suara Merdeka, Lt. 16Jalan Pandanaran No. 30Semarang - Indonesia

BRANCH OFFICE:Grha Muncul MekarJl. Panjang Arteri Kelapa Dua, No. 27Kebon JerukJakarta Barat - Indonesia

EMAIL:[email protected]

Documents

Continuously improving the quality of life - sidomuncul.com · with CPOB & CPOTB standard and also equipped with ISO standard facilities. 2000 Conducted initial public offering with