COMPANY PRESENTATION

UPDATE 9M20
PT INDUSTRI JAMU DAN FARMASI SIDO MUNCUL TBK

SIDO IJ | SIDO.JK
Disclaimer
This presentation was prepared solely and exclusively for discussion purposes. This
presentation and/or any part there of may not be reproduced, disclosed or used without the
prior written consent of PT INDUSTRI JAMU DAN FARMASI SIDO MUNCUL TBK (SIDO
or the Company).

This presentation, as well as discussions arising there from, may contain statements
relating to future expectations and/or projections of the Company by its management team,
with respect to the Company. These statements are generally 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
the company’s management team believes to be reasonable and presumed correct based
on available data at the time these were made, based on assumptions regarding the
Company’s present and future business strategies, and subject to certain factors which
may cause some or all of the assumptions not to occur or cause actual results to diverge
significantly from those projected. Any and all forward looking statements made by the
Company or any persons 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 offer to buy or sell securities or related financial instruments of the
Company.

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Table of Contents

Introduction to Sido Muncul

Company Highlights

Business Update & Key Financials 9M 2020

Together, We Fight COVID-19!

Appendix

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Introduction to Sido Muncul
Largest herbal product manufacturer in Indonesia with leading
product portfolio and strong financials

Well-established Presence Attractive Financials Numerous Accolades

More than 70 2017-19 CAGR FORBES - Best

years of SALES : +9% of the Best
heritage NPAT : +23% COMPANIES
(2019 & 2016)
Products that OP Margin: 35%
cater to NPAT Margin: 28% Various
Indonesian ** ROA: 24% Indonesia
consumers ** ROE: 27% most valuable
across all income * 1H 2020 brand awards
groups and ages ** Annualized

122 distribution Stable dividend

payout ratio Various
points
averaging >80% recognitions in
throughout
and debt free ESG
Indonesia
balance sheet

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Established to preserve Indonesian heritage through innovation,
local knowledge and passion for good

Founded by Mrs. Rakhmat Modern production facility New 32 ha factory Acquired PT Berlico • Completed construction of a
Sulistio in 1940 with the was installed in complex in Klepu, with Mulia Farma to expand new, integrated herbal liquid
first formula of Jamu Tolak Lingkungan Industri Kecil facilities having CPOB, business to production facility, with
Angin. In 1951, the (Semarang, Central Java) CPOTB, and various ISO pharmaceutical capacity of up to 180mn
company SIDO MUNCUL to meet growing market standards, was industry sachets/month
was established demand inaugurated • First shipment to the
Philippines

1940/50 1970/75 1984 1997 2000 2013 2014 2017 2018 2019

PT Industri Jamu dan Cornerstone-laying was Conducted Initial Public Commercialized a new Received Halal Certificate
Farmasi Sido Muncul held for the construction Offering with issue price of extraction facility, which from Indonesian Ulama
was officially of a new, bigger, and Rp580 per share. is more efficient and Council (MUI) and
incorporated modern factory complex Ticker code: SIDO larger in capacity Implementation of
in Klepu, Central Java Polymerase Chain
Reaction (PCR)

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Comprehensive range of products with strong brand
equity and awareness among Indonesian consumers
More than 300 SKUs
HERBAL & SUPPLEMENT FOOD & BEVERAGES PHARMACEUTICAL

64% of revenue 32% of revenue 4% of revenue

• Modernized “JAMU”, using a • Pioneer of fruity flavor energy • Various over-the-counter drugs
wide range of natural Indonesian drink in Indonesia, not just an and consumer health products
herbs and medicinal plants, with energy booster but also a (~60% contribution), and
proven and long history of refreshing drink prescription drugs (~40%
efficacies • Wide variety of herbal-based contribution)
• Herbal-based supplements to drinks and confectioneries. Some
meet the modern lifestyle of with health maintenance benefits
Indonesian consumers

Scientific and consumer driven innovation

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* As of 9M 2020
 Experienced management team with proven track records
in business and the industry

Board of Commissioners Board of Directors

40+ 40+ 35+ 40+

President Commissioner President Director
Commissioner Johan Hidayat Director Irwan Hidayat
Jonatha Sofjan David Hidayat
Hidajat >40 years
>40 years >35 years experience in
>40 years experience in experience in herbal business,
experience in herbal business herbal business, expertise in
herbal business expertise in marketing
operations

Commissioner 40+ Independent 25+ 20+ Director 20+

Sigit Hartojo Commissioner Director
Hadi Santoso Leonard Darmadji Sidik
Ronnie Behar

>20 years experience >20 years

>25 years experience
>40 years in finance, audit, experience in sales
in financial industry,
experience in taxation and IT at and logistics at a
now serves as Partner
herbal business several reputable reputable
and Head of Southeast
companies consumer company
Asia at Affinity Equity
Partners

Independent 15+
Commissioner
Eric Marnandus

>15 years experience

in financial and
consulting companies,
now serves as
Executive Director at
Affinity Equity Partners

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Company Highlights
Key company highlights

Leading player in the fast growing Indonesia

1 consumer health market

2 Continuous product and business innovation

3 Healthy and strong financial profile

4 Socially responsible as a core Company value

Commitment to continuously deliver value to all

5 stakeholders

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1 Leading player in the fast growing Indonesian consumer
health market and #1 player in herbal segment

 Cultural preference for herbal-based 10.3%

5yrs CAGR
35.6%
and natural products 9.3% 8.9% 8.3%
4.9% 20.5%
16.3% 13.4%
 Prevalent light digestive and 5.4%
respiratory ailments due to climatic
and micro-climatic conditions Herbal Vitamins and OTC Sports Weight
SIDO A B C D
Products Supplements Nutrition Management

Herbal has the fastest

A Compelling demographic B C SIDO is the market leader
growth within consumer
and cultural drivers in the “JAMU” industry.*
health segment

Cold Symptoms: 47% Others

Heatiness: 37% ~30%
Digestion: 7%
Herbal Analgesics: 4%
~70%
Others: 5%

Pre-cold is the most Iconic brands synonymous Market leader in herbal

D consumed category in E with herbal consumer F cold symptoms product
herbal segment health in Indonesia category

Source: Euromonitor, Nielsen, & Company Research 11

*Total Sales Volume of Jamu Industry – Nielsen 2019
1 Tolak Angin is the #1 herbal product in Indonesia

Continuous cycle of
product improvements
 World-class extraction
Tolak Angin assimilated in and production facilities
Indonesians’ daily life ensure high quality of
production
 Product fundamentally
unchanged since  New formats
introduction in 1950s introduced (e.g.,
 Today, Indonesians capsules) as
Launch of Tolak needs evolve
Angin frequently carry RTC
sachets of Tolak
 Made from some of Angin for quick
the finest herbs to remedy
boost immunity and
alleviate common cold  Proven safe for daily
Big pre-cold market and symptoms (e.g., consumption over
strong affinity for herbal headache, fever, long periods
products flatulence, dry throat)
 Pre-cold symptoms have  Pioneer in liquid
sizable market potential herbal RTC format,
 Indonesians’ affinity for easy to consume
herbal product with less
negative side effects

Tolak Angin is an incredible growth story of transitioning from a traditional remedy

into a staple modern herbal based consumer health product in Indonesia
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1 Kuku Bima Ener-G! is the pioneer of fruit flavored
energy drink in Indonesia

Going against the industry norm of energy drink formulation, taste and color, Kuku Bima
Ener-G! revolutionized the category by “thinking outside the box”

Innovative Iconic Future

 From Jamu product  ROSA! is the brand tagline,  Ready-to-Drink format offers
extended to energy drink which means STRONG in increased convenience for
category Javanese, and has become younger consumer segment
an iconic slogan
 Launched in 2004, Kuku  Further expansion into
Bima Ener-G! introduced  Most of the product’s international market,
powder energy drinks with advertisement carry especially in Nigeria and
various fruit flavors and Indonesia tourism theme, to Malaysia
quickly became a leading introduce Indonesia culture
player in the energy drink to consumers
category in Indonesia  Top 2 energy drink player
in the country with ~40%
market share in its category

Source: Euromonitor, Nielsen, & Company Research 13

1 Best-in-class production facility with pharmaceutical-
grade certification and advanced technologies
Sido Muncul Facility Semarang Herbal Indo Plant

• Main operation is located in Klepu, Central • Main facility to extract all herbal raw materials into liquid
Java, over a 32 ha land area, manufacturing all or powder products
Herbal and F&B products
• New extraction facility was completed in 2017, with
• Total liquid herbal production capacity of up to higher extraction yield, larger capacity and improved
180mn sachet per month, after completion of efficiency in raw materials usage
new herbal manufacturing plant in 2018. Post
expansion, utilization rate for herbal production
facility is still ample at around 50%
• New 1 ha raw material storage warehouse with
storage capacity of 6-month inventory
• Commissioning a new RTD manufacturing plant

Certifications Berlico Mulia Farma

• GMP standard for Traditional Herbal Medicine • Located in Yogyakarta (near Central Java)
(CPOTB) and Pharmaceutical (CPOB)
• Manufacturer of the entire pharmaceutical product range,
• ISO 9001 for quality management system, ISO including solid, semi-solid, and liquid formats
22000 for food safety management, and ISO
• Pharmaceutical GMP standard (CPOB)
17025 for laboratory management system
• Hazard Analysis & Critical Control Point (HACCP)
to identify food safety risks, prevent hazards in
food safety, and convey legal compliance
• Halal certification for over 200 SKU products

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1 Track record of successful and systematic market
penetration

SEA and
Nigeria
expansion
Strong distribution network (Distribution points)
 Targeted expansion across Java
 Leverage strong understanding of
Javanese consumer tastes and
preferences
 Relatable brand heritage East
 Establishment of extensive pan-Java Indonesia
distribution network, with 122 sub- expansion  Focus Export Countries:
distributors nationwide and access to  Philippine with Tolak Angin,
>70,000 wholesalers & retailers and  Nigeria with Kuku Bima,
>2 million POS  Malaysia with Tolak Angin and Kuku Bima
 Distributed in the Philippines through
West established retail partners (Mercury Drugs,
Indonesia Watsons, SouthStar, 7/11, etc.)
expansion  On-the-ground presence in Philippines
through branch office and subsidiary in Nigeria

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2 Product portfolio expansion through continuous
product innovation

HERBAL & SUPPLEMENT FOOD & BEVERAGES

As of 9M20, SIDO has launched 14 new products or variants, from herbal supplements, vitamins,
and healty beverages. All of SIDO new products, can be purchased via online-stores, such as:
Tokopedia, Shopee, and also Sidomunculstores.com.

SIDO launches 2-3 new products or variants annually

2 Entry to the pharmaceutical industry through
acquisition of PT Berlico Mulia Farma
• SIDO acquired PT Berlico Mulia Farma (“Berlico”) in 2014
• Key strategic rationale was to leverage the complementary value proposition
of herbal and pharma products resulting in a wider portfolio of consumer
health products
• Berlico has its indpendent manufacturing facility which produces >80 product
SKUs, from OTC drugs, consumer health products (pharmaceutical supplements
and topical medicines), to prescription drugs
• A distribution network covering 16 major cities in Indonesia
• From 2017-2019, Berlico achieved sales CAGR of 15%

Anacetine OBH Berlico Minyak Telon Tiga Anak

(medicine to reduce fever for kids) (medicine for cough) (Ointment for baby & kids)

Suprabion Berlosid Licokalk

(blood booster multivitamin) (medicine for gastritis) (calcium multivitamin)

Expansion into the pharmaceutical sector resulted in complementary organic growth

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3 Healthy and strong financial profile
Steady sales growth… …coupled by improving profitability
USD mn1 USD mn1
33%
219 30%
CAGR: +9% 25% 2017-19 CAGR:
26% EBIT +27%
197 24%
21% NPAT +23%
184
73
59 47 58
46 38

2017 2018 2019 2017 2018 2019

EBIT NPAT
1FX of 14,100 IDR/USD
EBIT Margin NPAT Margin

Resulting in best-in-class returns… …and strong cash position with no leverage

USD mn1
64
62
26% 58
23% 23%
20%
18%
17%

2017 2018 2019 2017 * 2018 2019

ROA ROE * Starting 2018, SIDO paid an interim dividend in the month of November

Financial performance of SIDO has exhibited consistent growth and profitability

resulting in financial efficiency
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4 Commitment to environmental, social and
governance excellence
• SIDO received the GREEN PROPER from Ministry of
Environment for the 4th consecutive years. Of 2,045
companies who participated in PROPER only 174
companies received Green Proper classification
• One of SIDO’s effort to preserve the environment is
converting herbal waste into biomass power and
fertilizer
• SIDO strives to improve the welfare of various
community groups through community empowerment
and various social activities nationally
• In 2019, SIDO released its first annual Sustainability
Report, in accordance to GRI standards, which tracks
and reports key ESG initiatives

Liquid waste Rain reservoir as Green Bergas Kidul Avocado Free cataract surgery
Biomass pellet
processing source of surface environment Tourism Village for more than 50
from herbal waste
through WWTP water reserve initiatives to empower thousand eyes
community throughout Indonesia

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5 Focus on shareholder return
SIDO IJ | SIDO.JK
IDR/share

1400 • First Annual FY18

• First export Sustainability Report,
shipment to Nigeria in accordance with
under Muncul GRI Standards
1300 Nigeria Ltd

• Appointed • Commercial
David Hidayat production of • FY18 final
1200 as the new the new liquid dividend of
CEO along herbal facility in IDR 21/share
with new, Klepu
1100 professional
• Received Halal
BOD members • First export • FY19 interim
Certificate
• FY17 final shipment to dividend of
• Transfer of the Philippines IDR 22/share
1000 dividend of
trade secret
IDR 29/share • Appointed
formulations
• First interim new Sales
to SIDO &
dividend (FY18) Director
900 termination
of 1.5% of IDR 15/share • 30th
royalty fee Anniversary • 2019 Forbes
Mudik Best of the
800 Bersama Best Award

• LIK operations
transferred to Klepu
700 for improved
efficiency

600 Total 2-year shareholder

return: +152%
500

SIDO has embarked on a transformation journey to deliver shareholder value,

with plenty of strategic initiatives still to be completed
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5 Key initiatives to further increase stakeholder value

• Optimize ‘white space’ opportunities by increasing penetration and market

Domestic share, especially in Eastern Indonesia
Expansion • Increase national direct distribution coverage network through systematic
investment in sales organization

• Continue to grow market share and brand awareness in Philippines, Malaysia,

Export and Nigeria. Introduction of new SKUs in these countries
Expansion • Explore market entry into new countries

Targeted • Increase awareness on the benefits of prevention vs. remedial

Marketing • Market education on the benefits of natural and herbal based products in
Strategy maintaining a strong immune system

Develop & • Introduction of 2-3 new products/SKUs domestically

• Increase breadth of herbal product portfolio to address additional
Launch New symptom/ailment verticals
Products • Introduction of new formats in existing product portfolio (eg. soft-capsule)

Optimize
• System integration and reporting automation
Business • Implement Sales Force Automation to enhance sales tracking and monitoring
Process

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Business Update & Key Financials
9M 2020
The economy recovery not as fast as expected in 3Q and
was disrupted by 2nd strict PSBB in Jakarta
Indonesia Consumer Confidence Index Monthly and Annual Real Sales Growth (%)
140
122 118 124 126 122 118
120 114

100 86 87
85 84 83
78
80

60

40

20

0
*Estimated Number

Monthly RSI Growth (mtm) Annual RSI Growth (yoy)

Source: Bank Indonesia Source: Bank Indonesia

• After the 1st PSBB was loosened on June, business activities started to reopen esp. for Shopping
Centers and GT. However, due to high number of daily new cases, the Government started to
reimpose strict PSBB especially in Jakarta on the 2nd week of Sept.

• DKI Jakarta Gov’t was reimposing strict PSBB for the 2nd time for 1 month, with business activities
only allowed to operate with 25% utilization. Jakarta as one of the national economy driver with
>15% contribution, with this 2nd PSBB will be even more slowing-down the national economy
recovery.

• Consumer confidence index remained in pessimistic zone below level 100, with a declined on the
month of Sept especially in DKI Jakarta due to the PSBB. While retail sales is expected to continue
the recovery trend although still in the contracted phase.

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Key updates as of 9-months period of FY 2020

14 new products First export of

or variants has Tolak Angin to
been launched Saudi Arabia on
up-to-date Aug’20

MT contribution
Stock split on Sep
at around 13% of
14th with 1:2 split
total sales as
ratio.
9M20

Tolak Angin
MSCI ESG has
gained 1%-2%
upgraded SIDO
market shares to
rating to ‘A’ from
72% as of 9M20
‘BBB’
from FY19
In 3Q20, SIDO showed improvement with positive sales
performance in all business segments

in IDR billion / Unaudited)

• Sales grew by 6% driven by high domestic demand on healthy beverage products (Vit C 1000
and Ginger Beverages) and also recovery in GT channel. Sales export remained weak, although
showed improvement on QoQ basis.
• From the 3 key focus export countries, Malaysia showed improvement with the average
monthly sales were already back to pre-Covid-19 level. However, Philippine and Nigeria hasn’t
showed significant recovery. Export sales is targeted at 2% of total sales for FY20.
• A&P to sales ratio was managed at below 10%, resulting the OPEX to sales ratio maintained at
19%. In-line with increased in sales and stable opex, the operating profit grew by 8% with
stable margin.

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All business segments booked positive growth on 9M20
(IDR Billion – Audited)

SALES GROSS PROFIT

(%Proportional) (%Margin)

+6% +5% 1,217

2,257 %Growth 1,158 %Growth
2,129 (54%)
93 (54%)
30
92 (4%) +1% 26 (32%) +12%
(4%) (29%)
246 +19%
722 +19% 206
608 (34%)
(32%) (34%)
(29%)

926 942
1,428 1,442 +1% (65%) (65%) +2%
(67%) (64%)

9M19 9M20 9M19 9M20

Herbal & Supplements Food & Beverages Pharmaceuticals 26

Cash position remains strong and not affected by the
pandemic
(IDR Billion – 2018-2019 (Au) & 9M20 (Un))
Capital Expenditure

400
Target
CAPEX ‘20
Cash & Cash Equivalents
135
1,027
135
903 865 41
806
2018 2019 9M20

Dividend Per Share

14
11 11

2017 2018 2019 9M20 93%

84% 88%
77%

Interim '18 Final '18 Interim '19 Final'19

DPS %Payout

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Strategies and initiatives to deliver the best results in the
midst of uncertainty
Sales &
Distribution Cost & Other
Product Mix

• F&B will lead the sales • Switching the focus to GT • A&P cost ratio will be at
performance as domestic channel for domestic around 10% for FY20.
demand for healthy drink market, as the PSBB has • Total OPEX is expected at
is still high and Kuku Bima been loosened. 20%-21% of sales, lower
export in Malaysia has • The recovery in GT will than FY19 ratio at 22%.
recovered. impact to MT sales • Dividend payout ratio will
• Activating BTL strategy to contribution. FY20, MT is be maintained at >80%.
increase the demand of expected to contribute
Herbal products, esp. 12%-13% (LY: 10%) of
Tolak Angin total sales
• Export will be maintained
at 2% of total Sales

Maintain the financial guidance with Net Sales increase by single-digit

and Net Income grow by double-digit for FY20

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Together, We Fight COVID-19!
Together, We Fight COVID-19!

• To fight COVID-19, SIDO commits to give

assistance worth of IDR 15bn in total. The
donation will be used to provide medical
equipment for medical team and also social-
aid. SIDO also cooperates with PMI,
BenihBaik.com, IDI, Rumah Perubahan, and
Kitabisa.com to help to distribute the aid to the
medical worker and also community.
• SIDO has also implemented safe work
environment to prevent the spread of the virus:
• Implements scheduling work-from-home
especially for supporting department.
• Implements safety and checking protocol in
every workplace, such as: Body temperature
checking at the entrance, provides hand-
sanitizer in every corner, routine sterilizing
with spraying disinfectants at all office
premises, etc.
APPENDIX
P/L Statement – 9M 2020 Unaudited

IDR Billion - Audited 9M20 9M19 ∆ %gr.

SALES 2,257 2,129 129 6%
COST OF GOODS SOLD (1,040) (970) (70) 7%
GROSS PROFIT 1,217 1,158 59 5%
%Margin 54% 54% 0%
Selling & Marketing Expenses (305) (309) 4 -1%
General & Administrative Expenses (134) (130) (5) 4%
Other Operational Expenses / Incomes 9 11 (3) -25%
OPERATING PROFIT 786 731 55 8%
%Margin 35% 34% 0%
Finance Income 37 37 0 1%
Finance Cost (0) (0) (0) 107%
PROFIT BEFORE INCOME TAX EXPENSES 823 767 55 7%
%Margin 36% 36% 0%
Income Tax Expense - Net (182) (189) 7 -4%
PROFIT FOR THE YEAR 641 578 62 11%
%Margin 28% 27% 1%

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Subsidiaries to support vertical integration of operations
from upstream to downstream
PT HOTEL CANDI BARU *PUBLIC
(81.0%) (19.0%)

The commencement of The commencement of The commencement of The commencement of

operation: operation: operation: operation:
1987 2009 1993 2018

Business activities: Business activities: Business activities: Business activities:

Trading Herbal Extraction Pharmaceutical Trading

Solid operation support from subsidiaries to answer customer demands

*Includes 115.6mn treasury shares (0.8%) from share buyback program between September 2015 and February 2016 33
PT INDUSTRI JAMU DAN FARMASI SIDO MUNCUL TBK

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

BRANCH OFFICE:
Grha Muncul Mekar, fl. 8th
Jl. Panjang Arteri Kelapa Dua, No. 27
Kebon Jeruk
Jakarta Barat - Indonesia

EMAIL:
[email protected]

WEBSITE:
https://investor.sidomuncul.co.id/en/home.html

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