PT JAPFA COMFEED INDONESIA Tbk

1Q2021

Memperkokoh Sinergi Untuk

Masa Depan yang Berkelanjutan
Strengthening Synergies for
a Sustainable Future
Index

Company Overview

Key Investment Highlights

Financial and Operational Highlights

 Company Overview
Core competencies across the value chain
POULTRY AQUACULTURE BEEF CATTLE

UPSTREAM

ANIMAL FEED
VERTICALLY INTEGRATED BUSINESS MODEL

PRODUCTION

UPSTREAM

BREEDING

MIDSTREAM

COMMERCIAL
FARMING

DOWNSTREAM

PROCESSING

DOWNSTREAM

CONSUMER
PRODUCTS

3
 Industrialized approach drives
operational and financial benefits
A Scale B Technology & genetics

– 2nd largest feed and DOC producer in Indonesia with – Exclusive relationship with Aviagen for the sourcing
significant scale across the value chain: of grandparent stock with superior genetics which is
tailored for the Indonesian climate
 16 feed mills, 76 breeding farms and 29
hatcheries across Indonesia – Advanced feed technology for quality control and
optimal feed conversion ratios
 Over 100 company farms and over 10,000
contract farms – Modern farming techniques and industry best
practices to further drive efficiency
– Centralized procurement of raw materials with the
broader Japfa Group

C Biosecurity & animal health D Standardization

– Advanced biosecurity measures for disease – Ability to replicate farming best practices and
prevention and control, comprising (i) isolation; (ii) infrastructural design across feed mills, breeding
sanitation and disinfection; and (iii) traffic control farms and hatcheries

– Stringent process adherence to prevent diseases – Mechanized production processes and established
SOPs allow for consistency
– In-house vaccine R&D and production unit, PT
Vaksindo, improves efficacy and shortens response – Opportunity to tap human resources across the Japfa
time to disease outbreaks Group facilitates standardization

Note: PT Japfa Comfeed Indonesia Tbk ( the “Company” or “PT Japfa Tbk”) 4
 Japfa: Well positioned for
long-term growth
Poultry leader in Indonesia
− Cattle fattening
− 2nd largest poultry feed producer in
business in Indonesia
Indonesia
− Aquaculture is primarily a − Core business and stable segment of
feed business with some the value chain
farming overlay Beef Trading − Cost plus pricing model provides the
− Protein diversification 2% and Company with the ability to pass on
strategy for varying Others most commodity and foreign exchange
consumer preferences Aquaculture 5% currency movements
6%

Poultry-related activity:
Poultry Feed
− DOC and Commercial Farming Poultry Processing and 39% 87% of total revenue
help drive sales volume for feed Consumer Products
9%
Stable and growing
business core business
− Shift downstream via investment
in slaughterhouses in order to
reduce exposure to fluctuating
farm gate prices.
− Acquisition of PT So Good Food, (SGF), Commercial FY 2020 revenue: IDR 37.0 Trillion
providing vertical integration to overall Farming
operation, as SGF is known for among 29% Diversification efforts
others: (i) leading brands for consumer to position company
food, Poultry for long-term growth
Breeding
− (ii) established network of marketing
10%
channels, (iii) has the experience, in-depth
knowledge and leading technology in food
processing and product marketing.
− 2nd largest day-old chick (“DOC”)
producer in Indonesia

5
Note: The % sales contributions from operational segments shown above are based on gross sales, which exclude elimination adjustments between segments.
 Growing responsibly
 Japfa’s animal protein business in Indonesia showed strong sales growth in the 2010 – 2014 period driven by strong poultry
demand, which then stagnated in the 2014 – 2015 period. After the down-cycle, Japfa’s poultry business resumed growth in 2016
 Japfa’s annual capex budget is primarily based on management’s expectations of market demand growth. However, we have the
flexibility to adjust our capex spending roll-out during the course of the year because we “build small boats, not big ships” in our
animal protein business. This allows Japfa to prudently manage cash flows

Strong annual growth for 4 year period Stagnant demand Strong Growth Demand Adjusted

IDR trillion IDR trillion

Covid 19 Impact
in Indonesia
5.0 55.3 60.0
54.2
4.5 Poultry Indonesia
49.4
Down-cycle Sept 50.0
4.0 2014 to June 2015
40.0
3.5
36.0 40.0
3.0 33.1 33.7
28.1
2.5 30.0
23.0 4.5
2.0 4.1
19.7 3.7 3.9
17.0 20.0
1.5 2.9
2.2 2.3
1.0 2.0
1.8 1.8 10.0
1.3
0.5
0.6 1.0 1.4 1.6 1.6 0.7 0.8 1.5 2.3 3.1 1.6
- 3 3
0.0
3
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
1 1 1,2
EBITDA (LHS) CAPEX (LHS) Total Sales (RHS)

Notes:EBITDA, CAPEX, and Total Sales refer to PT Japfa Tbk consolidated financial statements
2 Total Sales includes inter-segment sales within PT Japfa Tbk 6
3 Certain prior periods’ figures have been restated to conform with the presentation in the audited consolidated financial statements as of and for the year ended 31 December 2020
Investment highlights

1 Attractive industry dynamics driven by strong structural growth in protein consumption

2 Leading integrated poultry national champion with nationwide footprint

3 Core feed business offers stable profitability

4 Industrialised Business Model: Leading Market Positions

5 Experienced and tenured management team

8
 1 Attractive industry dynamics driven
by strong structural growth in protein consumption
Poultry meat consumption has increased in tandem
Poultry Meat Consumption per capita in Asia with GDP in Indonesia

(kg per capita – 2020E)

9 kg 2017
Malaysia 46.8 8 kg 2016

Consumption / Capita (Kg)

2015
7 kg 2019
Singapore 34 2018
6 kg 2011
2010 2014
Vietnam 16.5 5 kg
2009 2013
4 kg 2012
Philippines 13.7 3 kg
2 kg
Thailand 7.9
1 kg
Indonesia 7.9 kg
2500 3000 3500 4000 4500
GDP / Capita (USD)

 Ample room for sustained growth in business locations with some of the lowest poultry consumption per capita rates in
Asia

 “Meat-of-choice” given poultry’s relative affordability, religious neutrality, consumer preference and increasing
penetration and popularity of quick service restaurants

 Potential upside as diets evolve to include more meat-based protein from the currently carbohydrate-heavy diets

 From 2009 to 2019, the poultry meat consumption per capita growth in Indonesia outpaced Indonesia’s GDP per capita,
recording a 7.1% CAGR growth and 4.1% CAGR growth over the period respectively

Source:BPS Indonesia; IMF, WEO October 2020, Frost & Sullivan 2020

9
 2 Leading integrated poultry national champion
2 with nationwide footprint
Nationwide footprint with presence in all major
islands
Company’s Operational Areas

 Logistical feat given that Indonesia is an archipelago; serves as

 Significant economies of scale given procurement volume a barrier to entry and helps defend the Company’s market
of raw materials, especially in conjunction with the broader position
Japfa Group
 Wide geographical reach offers unparalleled access to both
 Heritage of 50 years in the poultry industry provides brand poultry farmers and domestic corn producers
recognition
 Key to tapping pockets of demand across the country given the
highly localized market, which is a result of (i) preference for
live birds; and (ii) underdeveloped cold chain and
Source: transportation infrastructure
(1) Companies’ annual reports and investor relations publications, Frost and Sullivan analysis 2020.
(2) PT Japfa Tbk’s production capacity numbers are from company’s own data. CP’s feed production capacity assumed to be poultry feed production capacity as swine 10
and other animal feed production capacity is assumed to be negligible.
(3) Source: Frost and Sullivan 2020, Company information
 3 Core feed business offers stable profitability
400 16%

350 14%

LTM OPM Poultry Feed

12%
300
Price Change3

10%
250
8%
200
6%
150
4%
100 2%

50 0%

1
LTM1 Poultry Feed OPM (%) SBM Price 2 Corn Price 2 USD/IDR 3

Poultry Feed OPM has been stable around 10% - 11% as feed has the ability to effectively
pass on fluctuations in raw material prices and currency to its feed selling price
Notes:
1. LTM = Last Twelve Month.
2. Raw Material price sourced from Bloomberg – global market price.
Since 2017, by government regulatory corn has been sourced locally, therefore the global market corn reference price no longer applicable.
3. The Normalized Price indicator graphs the price movement of an instrument using 100 as the base value for a user specified base date/time. The
normalized value for each bar after the base date/time is the percent of the base price expressed as a whole number. (i.e. 100 times actual price divided by
actual base price) This indicator shows the percentage move in price relative to some fixed starting point. For example in March 2010 USD/IDR was
Rp9,115.
11
Source: Bloomberg, Company information
 Segmental Trends: PT Japfa Tbk
(Poultry)
Revenue (IDR Billion) Operating Profit (IDR Billion) Operating Profit Margin (%)
48,543 47,123
50,000
43,338 5,568 5,037
40,000 5,185
34,650 4,178 22.6%
1,597 13,902
15,625 3,598 3,233
12,681 898
30,000 195
10,643 2,586 895
6,414 264 14.0% 13.6%
5,940 5,313 21 1,341 12.0%
20,000 4,573 282 10.2%
550 9.7% 12.4% 7.1%
22,659 21,148 2,799 2,867 9.9%
10,000 17,837 19,532 7.3%
1,733 1,996 2.6% 8.1% 5.0%
7.1%
(44) 3.9%
0 (57) (52) (93) 1.3% -0.4%
FY2017 FY2018 FY2019 FY2020 FY2017 FY2018 FY2019 FY2020
Feed Breeding FY2017 FY2018 FY2019 FY2020
-1.1% -0.8% -0.6%
Feed Breeding
Commercial farms Poultry processing Commercial farms Poultry processing Feed
Breeding
Feed business continues to be a stable pillar of profitability in PT Japfa Tbk Commercial farms
• The poultry business (feed, breeding, commercial farms and poultry processing) represents the bulk of PT Japfa Tbk’s revenue
• Operating profit in FY2019 weakened due to low broiler prices in the first three quarters of 2019. This was compensated by feed
volume growth and feed operating profit
• Operating profit in FY2020 has decreased due to the low DOC and broiler price environment in 2Q2020 and 3Q2020 affected by
Covid-19 related disruptions
• Our ability to generally pass on raw material costs increases in our feed selling prices is reflected in our stable feed operating
margins, even during the periods of Rupiah volatility and the poultry market downturn

Notes: The revenue figures for the poultry operational units shown above include inter-segment sales.
1. Poultry Processing refers to Poultry Processing and Consumer Products
2. 2017 Poultry processing without SGF
3. Certain prior periods’ figures have been restated to conform with the presentation in the audited consolidated financial statements as of and for the year ended 31 December
12
2020
 Japfa Ltd: A Leading Pan-Asian Industrialized
3 Agri-Food Company

WHAT WE DO WHERE WE ARE WHY WE DO IT

We produce quality We employ over 3 billion people living
protein staples, dairy, 40,000 people across in our target markets
and packaged food that Singapore, Indonesia, More than 40% of the
nourish millions of Vietnam, Myanmar, world’s total
people India and China population

A leading pan-Asian, industrialised agri-food company dedicated to

Feeding Emerging Asia with essential proteins

13
4 Industrialised Business Model: Leading Market Positions
4

Leading upstream regional market positions

Average Daily Milk Yield (ADM)1 China 40.1 kg/head #1

DOC Production1 Vietnam 20% #2

Poultry Feed Production1 Myanmar 27% #1

DOC Production1 Myanmar 26% #2

2nd largest Indonesian poultry feed and DOC producer2

Poultry feed production capacity market share (%) DOC production capacity share (%)

Japfa Japfa
CP 21% CP 25%
32% 38%
Malindo
7% CJ
10%
Others
Others 15%
41% Malindo
7%

New Hope
5%
1 Company’s own estimates, 2020 data
2 Frost & Sullivan Analysis, 2021 data 14
5 Experienced and tenured management team
5 Proven track record of guiding the Company through various cycles
Board of Commissioners*

Syamsir Siregar Hendrick Kolonas Retno Astuti Ignatius Herry Ito Sumardi
President Vice President Wibisono Wibowo Djuni Sanyoto
Commissioner Commissioner Independent Independent Independent
Commissioner Commissioner Commissioner
Year of agri Year of agri
experience: 16 experience: 25 Year of agri Year of agri Year of Agri
experience: 20 experience: 22 experience: 8
Board of Directors*
Handojo Santosa Bambang Tan Yong Nang Leo Handoko Rachmat Indrajaya
President Budi Hendarto Director Laksono Director
Director Vice President Director
Director Year of agri
Year of agri Year of agri Year of agri Year of agri experience: 13
experience: 34 experience: 42 experience: 13 experience: 32

*BOC and BOD as at 31 Mar 2021

Timeline of PT Japfa Tbk: 50 years of ‘best-in-class’ poultry production

1971 1982 2008 2017

2013 2020
Company 2003 • Establishment of new • Issuance 5Y
Established protein line beef Acquisition of PT
established as PT PT Japfa Tbk’s US$250mn
poultry breeding Regional bonds So Good Food,
Java Pelletizing expansion • Acquired Vaksindo first US$ Bond
operations to issuance which with established
Factory Ltd initiatives started Satwa Nusantara, an • Rp3.0tr branded consumer
compliment feed animal vaccine raised US$225m unsecured club foods
business manufacturer banks loan

1975 2012 2019 2021

1989 2007 2016
Poultry feed • Merger with Multibreeder a 5Y Rp5.0tr unsecured PT Japfa Tbk’s
PT Japfa Tbk PT Japfa Tbk’s club loan
business started listed on Jakarta first Rupiah Bond 73% owned subsidiary to Received first Sustainable-
production and Surabaya issuance which bring together the group’s capital injection • Rp3.0tr of Linked Bond
Stock Exchange raised Rp500bio poultry feed and breeding from KKR revolving loan issuance which
operations raised US$350m
• Rp2.0 of non
• Issued Rp1.5tr Japfa bond I revolving loan

15
 PT Japfa Tbk – Financial Performance

Revenue Operating Profit EBITDA PAT

Rp Billion Rp Billion Rp Billion Rp Billion

1Q 2021 10,769 1,475 1,804 916

11.6% y-o-y 135.2% y-o-y 95.5% y-o-y 119.7% y-o-y

1Q 2020 9,652 627 923 417

Good results with stabilised poultry prices

 Recent government culling initiatives successfully achieved supply and demand balance, stabilising poultry prices in
1Q2021. 1Q2020 performance was weak mainly due to volatile poultry prices
 Covid-19 movement restrictions continue to affect demand. However, the vaccination program has been rolled out since
March 2021, together with the reopening of businesses, we expect chicken demand to pick up gradually
 Poultry and Aquaculture feed margins remain healthy despite a rise in global raw material costs
 Movement restrictions linked to the pandemic are changing consumer patterns towards processed foods. Sales
volumes in frozen products have increased in 1Q2021 compared to last year

17
Note: Prior periods’ figures have been restated to conform with the presentation in the consolidated financial statements
 PT Japfa Tbk Sustainability-Linked Bond (SLB)

Tbk –
US$350m 5.375% 5NC3 Senior Unsecured SLB (Reg S) due Mar 2026
• First-ever SLB issued in the agri-food space in the world
• In addition, this is the first ever high yield SLB in Asia and first USD-denominated SLB in Southeast Asia
• Orderbook was over 3 times oversubscribed
• Well-distributed final allocation with high quality institutional investors. Fund managers, insurers and pension funds bought
88% and private banks 12%
• Strong support from institutional European investors taking up more than 50% of the final allocation. Out of the top 20
investors, 18 were ESG-related funds
• Upsized transaction to US$350m (from previous US$250m bond) and lowered coupon to 5.375% amid volatile market
conditions in an FOMC-week

Issuer Rating BB- (Stable) / BB- (Stable) by S&P and Fitch respectively
SPT Rating (Vigeo Eiris) Robust (KPI relevance) / Robust (SPT ambition)
Sustainability Construction of:
Performance Target (i) 8 water recycling facilities at any of its poultry slaughterhouses; and
(SPT) (ii) 1 water recycling facility at any of its hatcheries within the poultry breeding unit
Target Observation Date 3 months prior to Year 4
Step-up Event Failure to satisfy the SPT on the Target Observation Date
Coupon Step-up One-time 25bps coupon step-up for any interest periods following

18
 PT Japfa Tbk – Stable rolling operating profit

 PT Japfa Tbk is an agri-food business, hence will be subject to cyclicality which directly impacts its
revenue and profitability. Cyclicality is dependent on a variety of external factors, which are beyond the
Company’s control, including the seasonality of harvest and festivals, as well as macroeconomic factors
that affect purchasing power and government policies.
 Feed remains as a stable pillar of profitability.
 Operating profit has been fairly stable on a rolling twelve month basis.

Operating profit (IDR Billion)

CAGR 2.6%

3,483
3,306 3,242
3,136
2,982
2,635
2,484 2,357 2,256

Mar 19 Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21

Three months ended Rolling 12 months ended

19
Note: Certain prior periods’ figures have been restated to conform with the presentation in the consolidated financial statements
 Proven financial track record
Net Revenues Operating Profit EBITDA Net Profit
(IDR Billion) (IDR Billion) (IDR Billion) (IDR Billion)

10,769 1,804
9,652

1,475
923
916
627
417

1Q 2020 1Q 2021 1Q 2020 1Q 2021 1Q 2020 1Q 2021 1Q 2020 1Q 2021

Total Assets Net Debt / Equity (%) CAPEX Total Interest Bearing Debt
(IDR Billion) (IDR Billion) (IDR Billion)
32,738
29,065

12,443
11,470
76.3%

51.6%
580
239

31-Mar-20 31-Mar-21 31-Mar-20 31-Mar-21 31-Mar-20 31-Mar-21 31-Mar-20 31-Mar-21

20
 Capex
(IDR Billion)

3,065

1,645

239

FY2019 FY2020 YTD Mar 21

Note: Certain prior periods’ figures have been restated to conform with the presentation in the consolidated financial statements 21
 Thank You
IMPORTANT NOTICE: This investor presentation is for information only and should not be
relied upon to make any investment or divestment decision with respect to securities of PT
Japfa Tbk. Shareholders and potential investors are advised to seek independent advice in
the making of any investment or divestment decision. Where this investor presentation
includes opinions, judgements or forward-looking statements, these involve assumptions,
risks and uncertainties that may or may not be realised. Any references to industry prices or
price trends are Company estimates due to the absence of centralised public sources.
Industry related data quoted has not been independently verified.

For further information, please refer to the Company’s website www.japfacomfeed.co.id