First Pacific : Indofood reported double-digit top line growth on the first semester of 2014 financial results

FIRST PACIFIC COMPANY LIMITED

第一太平有限公司

Press Release

Saturday, 26 July 2014

Indofood reported double-digit top line growth on the first semester of 2014 financial results

The attached press release was released today in Jakarta by PT Indofood Sukses Makmur Tbk

("Indofood"), in which the First Pacific Group holds an economic interest of 50.1%.

PT Indofood Sukses Makmur Tbk (IDX:INDF) is a leading Total Food Solutions company with operations in all stages of food manufacturing from the production of raw materials and their processing through to consumer products and distribution to wholesalers and retailers. It is based and listed in Jakarta; its Consumer Branded Products subsidiary PT Indofood CBP Sukses Makmur Tbk ("ICBP") and agribusiness subsidiaries PT Salim Ivomas Pratama Tbk ("SIMP") and PT PP London Sumatra Indonesia Tbk ("Lonsum") are also listed in Jakarta. Two agribusiness subsidiaries, Indofood Agri Resources Ltd. ("IndoAgri") and China Minzhong Food Corporation Limited ("CMFC"), are listed in Singapore, and an agribusiness associate Roxas Holdings Inc. is listed in the Philippines. Through its five complementary strategic business groups, Indofood manufactures and distributes a wide range of food products: Consumer Branded Products ("CBP") (noodles, dairy, snack foods, food seasonings, nutrition and special foods and beverages), Bogasari (flour and pasta), Agribusiness (oil palm, rubber, sugar cane, cocoa and tea plantations, cooking oils, margarine and shortening), Distribution and Cultivation & Processed Vegetables (fresh and processed vegetables).

Indofood is one of the world's largest wheat flour instant noodle manufacturers by volume, one of the largest plantation companies by area and the largest flour miller in Indonesia. Indofood also has an extensive distribution network.

Further information on Indofood can be found at www.indofood.com

For further information, please contact:

* * *

John Ryan Tel: [phone]

Executive Vice President Mobile: [phone]

Group Corporate Communications

Sara Cheung Tel: [phone]

Vice President

Group Corporate Communications

PRESS RELEASE For Immediate Release

INDOFOOD REPORTED DOUBLE-DIGIT TOP LINE GROWTH ON THE FIRST SEMESTER OF 2014 FINANCIAL RESULTS

• Consolidated net sales grew 26.5% to Rp34.07 trillion

• lncome from operations increased 50.0% to Rp4.39 trillion

• lncome for the period attributable to equity holders of the parent entity grew 34.4%

to Rp2.29 trillion

• Earnings per share ("EPS") was Rp261

Jakarta, 25 July 2014 - PT lndofood Sukses Makmur Tbk ("lndofood" or the "Company'') today announced its financial results for the first semester ended June 30, 2014, reporting 26.5% growth in sales to Rp34.07 trillion from Rp26.93 trillion in the same period last year. The Company's 5 (five) Strategie Business Groups ("Group"), namely Consumer Branded Products ("CBP"), Bogasari, Agribusiness, Distribution and Cultivation & Processed Vegetables Group contributed around 44%,

24%, 17%, 7% and 8% respectively to the consolidated net sales.

The CBP Group, which consists of Noodles, Dairy, Snack Foods, Food Seasonings, Nutrition & Special Foods, and Beverages posted a 23.8% increase in total sales value, mainly attributable to the increase in average selling prices and sales from the Beverages Division. The total sales value of the Bogasari Group increased 13.0%, attributable to the higher volume, as welt as average selling prices. The Agribusiness Group registered 8.3% growth in total sales value primarily on higher palm products prices. The Distribution Group recorded 15.0% increase in total sales value, due to higher CBP sales. The Cultivation & Processed Vegetables Group delivered Rp2.58 trillion of total sales value in the first half of 2014.

Gross profit for the period grew 44.8% to Rp9.36 trillion from Rp6.46 trillion; and gross profit margin increased to 27.5% from 24.0% partly driven by the higher gross profit achieved by the Agribusiness Group and contribution from the Cultivation & Processed Vegetables Group. Despite higher operating expenses, income from operations increased 50.0% to Rp4.39 trillion from Rp2.93 trillion, while operating margin expanded to 12.9% from 10.9% in the same period last year. The income for the period attributable to equity holders of the parent entity increased 34.4% to Rp2.29 trillion from Rp1.70 trillion on higher portion of income allocated to non-controlling interest in conjunction with improved Agribusiness performance. Net profit margin slightly increased to 6.7% from 6.3%. Without taking into account non-recurring items and differences in foreign exchange, core profit grew 26.7% to Rp2.25 trillion from Rp1.77 trillion.

Anthoni Salim, the President Director and Chief Executive Officer of lndofood, said: "We are pleased with our performance in the first semester of 2014, delivering strong top line and bottom line growth. Our organic growth was very healthy as well, driven by significant improvement in the Agribusiness

PT IND FOOD SUKSES MAKMUR Tbk

Sudirman Plaza

lndofood Tower, 25'" Floor

Jl. Jend. Sudirman Kav. 76 • 78

Jakarta 1291O. Indonesia

T. [phone]

F. [phone] www.indofood.co.id

Group's performance. The increase in CPO production, combined with rising CPO price has resulted in tripling the Agribusiness Group profitability. Our resilient business model with five complementing Strategie Business Groups continues to demonstrate our ability to sustain our performance."

---End---

About PT lndofood Sukses Makmur Tbk

PT lndofood Sukses Makmur Tbk ("lndofood") (IDX: INDF) is a leading Total Food Solutions Company with operation spanning from the production of raw materials and their processing, to consumer products in the market.

lndofood capitalizes on a resilient business model with five complementary Strategie Business Groups

("Group"), namely:

• Consumer Branded Products, its business activities are conducted by PT lndofood CBP Sukses Makmur Tbk ("ICBP"), which was listed on the Indonesia Stock Exchange ("IDX") from October 7, 2010. ICBP is one of the leading consumer branded product producers in Indonesia, with a wide range of consumer products. In 2013, ICBP started its non-alcoholic beverage business, and has current product portfolio of ready-to-drink tea, packaged water, carbonated soft drinks and fruit juice drinks.

• Bogasari. The Group is primarily a producer of wheat ftour and pasta, with business operations supported by its own shipping and packaging units.

• Agribusiness. The Group is led by lndofood Agri Resources Ltd. ("lndoAgri"), listed on the Singapore Stock Exchange ("SGX"). Both of lndoAgri's two operating subsidiaries PT Salim lvomas Pratama Tbk and PT PP London Sumatra Indonesia Tbk, are listed on the IDX. The Group's principal activities range from research and development, seed breeding, oil palm cultivation and milling to the production and marketing of branded cooking oils, margarine and shortening. In addition, the Group is also involved in the cultivation and processing of rubber and sugar cane, as well as other crops. In 2013, lndoAgri initiated expansion of its global business through equity investment in the sugar business in Brazil and the Philippines.

• Distribution. With the most extensive distribution network in Indonesia, this Group distributes the majority of lndofood's and its subsidiaries' consumer products, as well as other third-party products.

• Cultivation & Processed Vegetables. Cultivation and processed vegetables group activities are conducted by China Minzhong Food Corporation Limited ("CMFC"), which is listed on the SGX and is an integrated vegetable processing company in the People's Republic of China. Through its decades of experience, CMFC has developed an integrated demand-driven operation with wide-ranging cultivation and processing capabilities. In addition, CMFC also has a branded products operation.

For further information, please contaet:

Werianty Setiawan

Director & Corporate Secretary

PT lndofood Sukses Makmur Tbk

Tel: [phone]

Fax: [phone]

Email: [e-mail] . id

PT IND©)FOOD SUKSES MAKMUR Tbk

ANO SUBSIDIARIES
SUDIRMANPLAZA,INDOFOOD TOWER,271h Floor, Jalan JenderalSudirman Kav.76·78,Jakarta 12910. INDONESIA
Phone :(62 •21 ) 57958622 Fax :( 62• 21) 57935960 wwwlndolood.com

CONSOLIDATED STATEMENT OF FINANCIAL POSmON	CONSOLIDATED STATEMENT OF COMPREHENSIVE NCOME	CONSOLIDATED STATEMENT OF CASH FLOWS
June 30,2014 ( ExpressedInMllllons ol Ruplah, UnlessOtherwlse Stated)	For tha Slx Months Ended June30,2014 (ExpressadInMllllonsoRl uplah,Unless Otherwlse Staled)	For the SlxMonths Ended June30,2014 (ExpressadInMllllons ol Ruplah,UnlessOtherwlse Stated)

2013 2013

llonths

(A! Restated)

x llonths

(AsRestal

ASSE TS (1/naudlted) (Audlted) UABilmESANO EQUITY (lMaudhod) (Audhod) (Unaudhed)
(Unoudhed)

CASHF OWS FROMOPERAllNG ACTIVJnES (Unaudhed) (Unaudlted)
CURRENT ASSETS UABimE5 Cashreoeivedfrorn arstomers 33,653,on 261, 98,785
CURRENT LAI BIUTlES NETSALES 34,()66065 26,932,942 cashpald to su rs (18,1124, 79) (150, 70,135) Cash and cash aqulva ents 14,346,508 13,666,194 ShM-term bank loans andoverdraft 6,284,250 4,625,586 Paymentslor proOOclion and cperatin9 expenses (70, 72,979) (5,656,435)
Tlme deposlts 6,049,852 3,398,300 Truslreceipts payahle 4,674,830 4,103,558 COST OFGOODS SOLO 24,70 4 68820,468,666 Payments to employees

(g,967, 382)

(2,267,662)

Short-termlnveslments 6691,28 692,832 Tradepayables

Cosh90neratedlromoperations 5,500,237 3,204,353

Rooeisinterestinoome 407,656 249,507
Acoounlsrece vable Third parties 4,210,389 3,400,715 GROSSPROFIT 9,361,377 6,464,276 Payments of intereslexpense (760,715) (4714, 78) Trade Olher payables • Third paJties 1,403,846 1,172,720 S.lling and distributionexpenses (3,0631, 81) (2,233,930) Payments of taxes•nel (1,088,316) (766,681) Thlrdpanles • net 4,335,192 4,053,300 Accrued expenses 1,584,975 1,5131,47 Generaiand admlnlstrali>$ expenses (2,043,422) (1 456,169) NeCl .shProvlded by Operatlng Actlvtlies 39, 537, 37 2,176,974
Related partles 546,581 975,733 Short term employee benellts llablllty 931,155 no,224 Otl>eroperatlng ncome 316,025 349,927
Non trade Taxes payable 603,568 305,536 Oil>er operatlng expenses j179,713l1 8474) CASHFLOWS FllOM INVESTNI G ACTIVmES

Thirdparties

408,126
Current matuntles of long-termdebts Proceedslromsale of fo:edassets and
Berk Joans 10, 13,170 954,935 INCOIIEFROM OPERATlONS 4 9 1 068 2,927,830other non-eurrent assets 18,825 62,673
Related panles 268,953 208,269 Bonds payab e 729,108 2,336,642 lnvestmenlin time deposi1s (2,651,552)
lnventories • net 10,121,783 8,160,539 Liability IO< purchases of ixed assets 10,4371 1 111Rnance income 507,769 265,093 Acl:loons10 xedasSOIS andantations (2,435,529) (2,409,393)
Rnanoe expenses (825,131) (598,328) Acl:loon10 lman!J!>Ie assets (367,756)
Advances and deposlts 751,908 884,410 TotalCurrent Llabllltles 23,599,467

19,471,309

Shareinnetincarne ( ss)olassociales (73,888) 99,235 Advancssfor !XJrdlases ollxed Assets (274,232) (302,224)
Prepaldtaxes 417,994 203,619 NON-CURRENT LIABILmES catalized fulure cane crop expenditures (108,262)
fUiurecropexpend1tures 172,562 143,896 Loog-lermdebts • nelof CLrrenlmaturities INCOIIEBEFOREINOOME TAX EXPENSE 3,999,856 2,693,830 l trnonl., clillo (94,200) (2,267,93.2)

Prepaldexpanses andother Bankloans 14,003,478 13,294,5n lncomeTax Expense-Net (1,014,457) (624,995) AcqutlonolSubslatles. net oclashu red _ { ) .m

Bondspayable and Sulwk ljarah payables 3,983,586 1,993,227

Llablity 1or purel1ases o'ixed assets 34,124 36,511 INCOMEFORTI!EPERlOOBEFORE

Totall ong-1enn deb1s 18,021,188 15,324,315 PRO FORIIA ADJU5TIIENT 2,985,399 2,068,835

Advances for stock subsa:lt on from non·controlling lnterests 19,600 2131,50

NON-CURRENTASSETS Due to relaled parties s11,m 5154,43 INCOMEFORTI!EPERlOO 2,985,399 2,067,717

liabli es for employeeberefils 3,055,716 2,729,970

Estlmated llabllities for assels dlsmantl ngcosts 29,603 50923 non-controlinglnlerest 19,600
Plasmareceivab es• net 612,188 632,661 OlherIOng·tenm payables 92,7491 6,166Other comprehenslvelncome Payments of short--b.W.Ioans (1,877,453) (8723, 95) TotalNor><:urrentLlabliH•s 23,036,483 20,248,351 Urrealized9ails(losses)on avaiable-lor-sale Paymemof Ruahbonds V (1,610,000)
lnancial assets (23,704) 29,202 Payments of lonll"termb.W.Ioans (585,838) (360,206)
Long·terminvestments 1,882,860 1,573,095 TOTAL UABILmES 45,635,950 39,71 9,650 Exchangedifferences on ranslation I'Lrchase otlreasury stockby aSubsitlary (166,257) Plantatlons offinanclalstatements. (247,763) 183,882 lnvestment in convele nofes (57,020)
Matureplantations • nel 5,000,080 4,742,845
FairYalue gainarisill! fromcashftow es 171 0Payments oclash tt. ndsby Subsicialies lo
EQUI TY Other compnhenslvelncome(loss) (289,757)

213,084

non-controllnl 9interes1S

Immature antations 2,919,574 2,847,525 Equlty A11ributable1a Equty Halders ol he Parent Entlty Payments of liaity lor !XJrchasesol H•ed assets
Industriaitlmber plantatlons· nel 272,950 269,020 c"ll :C:_Rfd. MgO J:valueper slhare TOTAL OOIIPRE11ENSIVE NCOIIEFORTHEPERIOD 2,715,642 2,280,811 NetC.sh Provlded by Ananclng Actlvllles
Flxed assels • net 24,244,877 23,027,913 lssued erdfully paid • 8,780,426.500 shares 878,043 878,043 lncome or the period 8ttrlbutable to: NET EFfECTSOFCHANGESINEXCHANGE DelerredCl1argas • nel 608,507 529,943 Addlllonalpa d·ni capitai 522,249 522,249 Equtiy ho er;of ihe parantenuty 2,289,204 1,703,372 RATES ONCA5H AII>CA5HEOUIVALENTS

Unrealizedgains on availab e·for-sate financialassets 538,987 554051 NOO<.:Ontr(lllingìmarests 69 195384,355

Goodwill • nel 3,970,420 3,970,420

Dlfference kom changas nequlty of Subsldlarles

lntangible assets• net 2,783,093 1,931,957 and effeols o1transaclions with non-conlrolllnglnlerests 6,582,358 6,579,227 Tolll 2,985399 2,067,727 NETINCREASE(DE EASE)INCASH AHOCAS!iEOUIVALEHT5

Long-termprepayments 1,401,066 1,280,156 Exchange diflerences on lranslallonolfonercialstatements 12, 30,764 1,505767 Tolllcomprehenslnlncome CAS!iANO CAS!iEOUIVALfNJSAT BEGINNNI G

Advanc<>s for stock subscrlptlonIn Approprialed fO< ganer<>J reserve 90,000 85,000 fili'the perlod attrlbutable to : OFPEIIIOD 13,5187, 09 13,217,633
Unappropriated 1 _ 13.Ji)_5J Equily ho er;of ihe parantentily 1,995792 1,9017, 32
Sub-talal 2 23648 95 Non-con1rollni 9interesls 71 9 850379,079 CAS!iAND CAS!iEOUIVAI.fNTSAT DOFPERIOO 14,319,251 13,168,574
Nor><:anlrolllnglnterests n 2 Totaf 2,715,642 2,280,811
TOTAL EQUITY 39,616,397 38,3731,29 BASICEARNIHGSPER SHARE ATTRIBIITABLE TO EOUITYHOLDERS Of TltEPAREifT ENTTIY
TOTAL UABILmES ANDEQUITY 86,252,347 78,092,789 (lullamolllt)

C.shandeashequlvalents conslst o1:

No1es: 1. The flnanclallniOtlon as oland or the slx months ended Juna 302, 014 and 20131sunaudlted. Jakarta, July 26,2014
2.The financial lnformation as of Oecember 31,2013 is derived lrom theconsolidated tinancialstatements that have beenaucfitedby Pubilc Aocounting Firm Purwantono,Suherman& Surja,wtlictl expressed unqualified opinionin their report dated March 17,2014.

3.Theconsolidated statement of comprehenslve lncome erconsolidated o1cashflow for the slx months endedJune30,2013,wererestated due tobusinesscomblnation nvolvlngentltiesunder common contro!. Certain lnlormallonsuef>as theconsolidaled

statements of changes nequityand notes te theconsoidateci t nancialstatements are not inckJded inttte information presented above. The BoardolDlrectors

4.Basic eamingsper share lscomputed based onthe weighled averaga or lhe number of lssuedand ulypald sharas dunngthe raspeotlve penods.

5.Theforeignexchange rates used alJune 30,2014and Deoember 31,2013 were Rp11.969and Rpt2,189respectively.to US$1.

PT IND@FOOD SUKSES MAKMURTbk