Indofood CBP Sukses Makmur (ICBP IJ) Assessing the new potential sales driver

Adjusting our forecast to adapt to new additional contributor

With all of the proposed transaction conditions having been satisfied, Indofood CBP Food and Beverage Sukses Makmur (ICBP IJ) completed the proposed shares acquisition transaction for Pinehill Company Limited (Pinehill) on August 27, 2020. After the completion of the Company Report proposed transaction, ICBP owns the entire issued share capital of Pinehill. September 8, 2020 Although the value of the transaction is quite costly, we still believe that the acquisition would add value to ICBP as it is an accretive acquisition. Moreover, Pinehill has been implementing some initiatives to facilitate its growth factors, such as extending its distribution network into second-tier cities and rural districts, as (Maintain) Buy well as introducing new packaging size and flavors. We believe that those initiatives can bear fruit along with the effects of consolidation with ICBP. We adjust our Target Price (12M, IDR) 13,250 forecasts on ICBP, largely to factor in the acquisition.

Share Price (9/7/20, IDR) 10,325 ICBP’s 2017-2022 net profit CAGR to grow by 15.2%

We predict that ICBP’s 2017-2022 revenue CAGR will grow by 13.5% (vs. 8.5% Expected Return 28.6% revenue CAGR 2017-2022 in our previous projection). We estimate that its FY20 and FY21 revenue might jump to IDR48.3tr (+5.7% from our previous estimate) and Consensus Net Profit (21F, IDRbn) 6,492 IDR61.8tr (+25.0% higher than our previous estimate), respectively. These higher revenue estimates are mostly contributed by Pinehill (4-month contribution in FY20 NP Mirae Asset vs. consensus (21F, %) 11.7 and full contribution in FY21 onwards). We currently estimate ICBP’s 2017-2022 net EPS Growth (21F, %) 23.4 profit CAGR to grow by 15.2% (vs. 10.6% net profit CAGR 2017-2022 in our previous P/E (21F, x) 16.6 estimate). Hence, we expect ICBP’s FY20 and FY21 net profit to arrive at IDR5.9tr Industry P/E (21F, x) 18.3 (+16.6% YoY) and IDR7.3tr (+23.4% YoY), respectively. Benchmark P/E (21F, x) 1.1 ICBP’s debt to equity ratio to surge to around 1.1x Market Cap (IDRbn) 120,409.2 In order to complete the acquisition, ICBP signed a syndicated loan facility Shares Outstanding (mn) 11,661.9 agreement with six banks on August 18, with a total amount of loan equivalent to Free Float (%) 19.5 USD2,050mn for 5 years, without any collaterals. Thus, given the consequence of Beta (Adjusted, 24M) 0.8 the additional new loan, we estimate ICBP’s total debt to surge to IDR32.2tr as of 52-Week Low (IDR) 7,750 the end of FY20. We predict that the sizeable additional debt will lift ICBP’s debt to 52-Week High (IDR) 12,550 equity ratio to around 1.1x (as of the end of FY20). Despite the surge in ICBP’s debt (%) 1M 6M 12M to equity ratio, we believe that the ratio is still manageable. Absolute 1.2 -0.7 -13.4 Maintain Buy with higher TP of IDR13,250 Relative -0.6 -2.7 3.5 We currently maintain our Buy call on ICBP and raise our TP to IDR13,250 (from (D-1yr=100) JCI ICBP 110 previously IDR12,680). We believe that the acquisition of Pinehill would add value to

100 ICBP as it is an accretive acquisition. We derived our target price by applying a P/E of

90 21.3x (close to -0.5 SD of its 5-year mean P/E) to our 2021F EPS. Downside risks to

80 our call are higher-than-expected raw material prices, worse-than-expected

70 depreciation of Rupiah, lower-than-expected profitability of Pinehill, and slower- 60 than-expected economic activities. 9/19 11/19 1/20 3/20 5/20 7/20 9/20

PT. Mirae Asset Sekuritas FY (Dec.) 12/17 12/18 12/19 12/20F 12/21F

Revenue (IDRbn) 35,607 38,413 42,297 48,325 61,771 Consumer Operating profit (IDRbn) 5,378 5,772 7,278 9,350 12,601

Mimi Halimin Net profit (IDRbn) 3,797 4,576 5,039 5,877 7,251

+62-21-5088-7000 (ext.: 167) EPS (IDR) 326 392 432 504 622 [email protected] BPS (IDR) 1,678 1,854 2,170 2,466 2,846

P/E (x) 31.7 26.3 23.9 20.5 16.6 P/B (x) 6.2 5.6 4.8 4.2 3.6 EV/EBITDA (x) 19.0 18.1 14.0 14.2 10.6 ROE (%) 19.4% 21.2% 19.9% 20.4% 21.8%

ROA (%) 12.0% 13.3% 13.0% 7.0% 7.9% Dividend yield (%) 1.6% 1.9% 2.0% 2.3% 2.9% Net gearing (x) Net cash Net cash Net cash 99.3% 78.9%

Note: Net profit refers to net profit attributable to controlling interests; Source: Company data, Mirae Asset Sekuritas Indonesia Research Estimates PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

September 8, 2020 Indofood CBP Sukses Makmur

Adjusting our forecast to adapt to new additional contributor

With all of the proposed transaction conditions having been satisfied, Indofood CBP Sukses Makmur (ICBP IJ) completed the proposed shares acquisition transaction for Pinehill Company Limited (Pinehill) on August 27, 2020. After the completion of the proposed transaction, ICBP owns the entire issued share capital of Pinehill.

Figure 1. The structure of Pinehill Company Limited before the acquisition

Source: Company data

Figure 2. The structure of Pinehill Company Limited post the acquisition by ICBP (company)

Source: Company data

Although the value of the transaction is quite costly, we still believe that the acquisition would add value to ICBP as we believe that it is an accretive acquisition. Pinehill (along with its subsidiaries) is engaged in the manufacturing, sales, and distribution of instant noodles. Its key markets are Saudi Arabia, , , Turkey, Serbia, Ghana, , and with a total population of approximately 550mn, giving ICBP an opportunity to penetrate deeper into the overseas market. Pinehill gains a relatively strong market foothold in most of its markets. However, according to ICBP, the average consumption of instant noodles per capita in Pinehill’s markets is still low. Thus, we believe that there is still ample room for growth in the future.

Mirae Asset Sekuritas Indonesia 2 September 8, 2020 Indofood CBP Sukses Makmur

Moreover, Pinehill has been implementing some initiatives to facilitate its growth factors, such as extending its distribution network into second-tier cities and rural districts, as well as introducing new packaging size and flavors. We believe that those initiatives can bear fruit along with the effects of consolidation with ICBP. We adjust our forecasts on ICBP, largely to factor in the acquisition.

ICBP’s 2017-2022 net profit CAGR to grow by 15.2%

We predict that ICBP’s 2017-2022 revenue CAGR will grow by 13.5% (vs. 8.5% revenue CAGR 2017-2022 in our previous projection). We estimate that its FY20 and FY21 revenue might jump to IDR48.3tr (+5.7% from our previous estimate) and IDR61.8tr (+25.0% higher than our previous estimate), respectively. These higher revenue estimates are mostly contributed by Pinehill (4-month contribution in FY20 and full contribution in FY21 onwards).

Figure 3. ICBP’s revenue 2017-2022 estimates Figure 4. ICBP’s revenue: Current vs. previous estimates

(IDRbn) (IDRbn)

80,000 80,000

60,000 60,000

40,000 40,000

20,000 20,000

0 0 2020 F 2020 F 2021 F 2021 F 2022 F 2022 F 2017 2018 2019 2020 F 2021 F 2022 F (previous) (current) (previous) (current) (previous) (current)

Source: Company data, Mirae Asset Sekuritas Indonesia Research Estimates Source: Company data, Mirae Asset Sekuritas Indonesia Research Estimates

We currently estimate ICBP’s 2017-2022 net profit CAGR to grow by 15.2% (vs. 10.6% net profit CAGR 2017-2022 in our previous estimate). Hence, we expect ICBP’s FY20 and FY21 net profit to arrive at IDR5.9tr (+16.6% YoY) and IDR7.3tr (+23.4% YoY), respectively.

Figure 5. Pinehill’s revenue estimates Figure 6. ICBP’s net profit 2017-2022 estimates

(IDRbn) (IDRbn)

18,000 10,000

15,000 8,000

12,000 6,000

9,000 4,000 6,000

2,000 3,000

0 0 2017 2018 2019 2020F 2021F 2022F 2017 2018 2019 2020 F 2021 F 2022 F

Source: Company data, Mirae Asset Sekuritas Indonesia Research Estimates Source: Company data, Mirae Asset Sekuritas Indonesia Research Estimates

Mirae Asset Sekuritas Indonesia 3 September 8, 2020 Indofood CBP Sukses Makmur

ICBP’s debt to equity ratio to surge to around 1.1x

In order to complete the acquisition, ICBP signed a syndicated loan facility agreement with six banks on August 18, with a total amount of loan equivalent to USD2,050mn for 5 years, without any collaterals. Thus, given the consequence of the additional new loan, we estimate ICBP’s total debt to surge to IDR32.2tr as of the end of FY20. We predict that the sizeable additional debt will lift ICBP’s debt to equity ratio to around 1.1x (as of the end of FY20). Despite the surge in ICBP’s debt to equity ratio, we believe that the ratio is still manageable.

Figure 7. ICBP’s total debt estimates Figure 8. ICBP’s debt to equity ratio estimates

(IDRbn) (x)

50,000 1.5

40,000

1.0 30,000

20,000 0.5

10,000

0 0.0 2017 2018 2019 2020 F 2021 F 2022 F 2017 2018 2019 2020F 2021F 2022F

Source: Company data, Mirae Asset Sekuritas Indonesia Research Estimates Source: Company data, Mirae Asset Sekuritas Indonesia Research Estimates

Maintain Buy with higher TP of IDR13,250

We currently maintain our Buy call on ICBP and raise our TP to IDR13,250 (from previously IDR12,680). We revise up our revenue and net profit forecasts on ICBP, largely because we incorporate the Pinehill acquisition into our forecasts. We believe that the acquisition of Pinehill would add value to ICBP as we believe that it is an accretive acquisition. Despite the surge in ICBP’s debt to equity ratio, we believe that the ratio is still manageable. We derived our target price by applying a P/E of 21.3x (close to -0.5 SD of its 5-year mean P/E) to our 2021F EPS. Downside risks to our call are higher-than-expected raw material prices, worse- than-expected depreciation of Rupiah, lower-than-expected profitability of Pinehill, and slower-than-expected economic activities.

Figure 9. ICBP’s forward P/E

( x )

31

28 + 2 SD +1 SD 25 mean 22 -1 SD 19 -2 SD 16

13

10 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20

Source: Bloomberg, Company data, Mirae Asset Sekuritas Indonesia Research Estimates

Mirae Asset Sekuritas Indonesia 4 September 8, 2020 Indofood CBP Sukses Makmur

Timeline and key notes on Pinehill acquisition by ICBP

On May 22, 2020, ICBP entered into a Conditional Shares Sale and Purchase Agreement (CSPA) with Pinehill Corpora Limited (“Pinehill Corpora”, an affiliated party of ICBP) and Steele Lake Limited (“Steele Lake”, a non-affiliated party of ICBP) to purchase the entire issued shares of Pinehill Company Limited.

By July 17, 2020, Company Limited, parent entity of ICBP, had obtained approval from its independent shareholders in its Special General Meeting of Shareholders that was held in Hong Kong.

On August 3, 2020, ICBP held an Extraordinary General Meeting of Shareholders (EGMS) and obtained approval from shareholders on the proposed acquisition of all shares of Pinehill Company Limited.

On August 18, 2020, ICBP signed a syndicated loan facility agreement with a total amount of loan equivalent to USD2,050mn for the period of 5 years, without any collaterals.

On August 27, 2020, ICBP completed the proposed transaction as stated in the information memorandum to the shareholders in connection with the proposed shares acquisition transaction.

Transaction value: The transaction value has been agreed in the amount of USD2,998mn, which is divided into two phases of payment (USD2,348mn shall be made on the completion date and USD650mn shall be retained and only be paid (subject to the adjustment) on 30 April 2022 or a later date as any adjustment to the Purchase Consideration is definitively determined).

Source of funding: ICBP intends to fund this potential acquisition from internal resources (USD300mn) and borrowings from third-party banks.

Profit guarantee: Under the agreement, the sellers have agreed to extend its guarantee to the company on the guaranteed profit, in which the average NPAT (the audited consolidated net profit after tax attributable to the parent entity) of the target group for the guaranteed period (1 January 2020 to 31 December 2021) would be USD128.5mn per annum.

If the guaranteed profit, after taking into account a 5% deviation tolerance, is not achieved by the target group, then the purchase consideration shall be adjusted pursuant to the following formula: Adjustment value = (guaranteed profit – actual profit) x PE Target Group (23x).

The terms of the guaranteed profit allow a 5% deviation tolerance before an adjustment is triggered. However, once an adjustment is triggered, the amount to be deducted from the purchase consideration is based on the whole shortfall, multiplied by the PE target group.

Retention amount and one-time compensation: To secure the payment of the adjustment value, the Company will retain its payment for part of the Purchase Consideration proportionally, in aggregate amount of USD650mn (the Retention Amount), and this shall be paid by the Company to the Sellers on 30 April 2022 or such later date as any adjustment to the Purchase Consideration is definitively determined.

As a result of any adjustment to the Purchase Consideration, the Retention Amount would be reduced by an amount equal to the amount of the adjustment value, following which the remaining balance of the retention amount (if any) together with one time compensation of 2.63% (two point sixty three percent) of such remaining balance of the Retention Amount should be paid by the Company to the Sellers proportionally on 30 April 2022 or such later date as any adjustment to the Purchase Consideration is definitively determined.

However, if the adjustment value exceeds the Retention Amount, then there would be no compensation paid by the Company and the Sellers proportionally shall be obligated to pay in full the shortfall amount to the Company on 30 April 2022 or such later date as any adjustment to the Purchase Consideration is definitively determined.

Others: The proposed transaction is an affiliated party transaction of ICBP. However, the Board of Directors believe that the proposed transaction does not contain conflict of interest. Therefore, ICBP is not required to obtain the approval of the independent shareholders of the company to conduct the proposed transaction.

Mirae Asset Sekuritas Indonesia 5 September 8, 2020 Indofood CBP Sukses Makmur

Indofood CBP Sukses Makmur (ICBP/Buy/TP IDR13,250)

Statement of Financial Condition Income Statement (Summarized) (Summarized) (IDRbn) 12/18 12/19 12/20F 12/21F (IDRbn) 12/18 12/19 12/20F 12/21F Revenue 38,413 42,297 48,325 61,771 Cash 4,727 8,359 3,678 5,451 Cost of Goods Sold 26,148 27,893 31,991 40,769 Trade Receivables 4,128 4,049 4,952 6,262 Gross Profit 12,266 14,404 16,334 21,002 Inventories 4,001 3,841 4,470 5,696 Operating Expenses -6,494 -7,126 -6,984 -8,401 Other CA 1,265 376 725 927 Operating Profit 5,772 7,278 9,350 12,601 PPE 10,742 11,342 17,664 18,406 Pretax Profit 6,447 7,437 9,142 12,014 Other Non-CA 9,504 10,742 52,924 55,304 Income Tax -1,788 -2,077 -2,553 -2,995 Total Assets 34,367 38,709 84,413 92,046 Non-Controlling Interest 83 321 711 1,768 Trade Payables 2,956 2,635 3,254 4,147 Net Profit 4,576 5,039 5,877 7,251 ST loans + CPLTD 1,393 654 381 301 Total CL 7,235 6,556 7,501 9,390 Profitability ratio Long-term debt 852 1,702 31,843 31,343 Gross Profit Margin 31.9% 34.1% 33.8% 34.0% Total Liabilities 11,660 12,038 53,217 55,789 Operating Profit Margin 15.0% 17.2% 19.3% 20.4% Common Stock 583 583 583 583 Net Profit Margin 11.9% 11.9% 12.2% 11.7% Paid in Capital 5,985 5,985 5,985 5,985 Return on Equity 21.2% 19.9% 20.4% 21.8% Retained Earnings 15,030 18,495 21,954 26,383 Return on Asset 13.3% 13.0% 7.0% 7.9% Non-Controlling interest 1,088 1,370 2,436 3,068 Equity (ex minority) 21,619 25,301 28,760 33,189

Forecasts/ Valuations Cash Flow (Summarized) (Summarized) (IDRbn) 12/18 12/19 12/20F 12/21F 12/18 12/19 12/20F 12/21F

Operating Cash Flow P/E (x) 26.3 23.9 20.5 16.6

Net income 4,576 5,039 5,877 7,251 P/B (x) 5.6 4.8 4.2 3.6 Depreciation 734 886 1,161 1,258 EV/EBITDA (x) 18.1 14.0 14.2 10.6 Changes in operating accounts EPS (IDR) 392 432 504 622 ∆ in trade receivables 257 -79 903 1,310 BPS (IDR) 1,854 2,170 2,466 2,846 ∆ in inventories 740 -161 629 1,226 DPS (IDR) 195 207 242 298 ∆ in others CA 616 -889 349 202 Payout ratio (%) 49.7% 48.0% 48.0% 48.0% ∆ in trade payable 52 -321 619 893 Dividend Yield (%) 1.9% 2.0% 2.3% 2.9% ∆ in short term debt -7 -739 -273 -80 Revenue growth (%) 7.9% 10.1% 14.3% 27.8% ∆ in accrued expense 229 140 575 672 GP growth (%) 10.9% 17.4% 13.4% 28.6% ∆ in others CL 133 241 24 403 OP growth (%) 7.3% 26.1% 28.5% 34.8% CFO 4,105 6,375 6,103 7,659 EBITDA growth (%) 8.4% 25.5% 28.7% 31.9% Investing Cash Flow NP growth (%) 20.5% 10.1% 16.6% 23.4%

∆ in PPE 3,355 1,487 7,483 2,000 AR turnover (x) 9.6 10.3 9.8 9.9 Others 2,584 1,238 42,182 2,380 Invt. turnover (x) 7.2 7.1 7.2 7.2 CFI -5,939 -2,725 -49,665 -4,380 AP turnover (x) 6.9 7.7 7.8 7.8 Financing Cash Flow ROA (%) 13.3% 13.0% 7.0% 7.9%

∆ in other liability 62 207 10,093 1,183 ROE (%) 21.2% 19.9% 20.4% 21.8% ∆ in equity 2,521 1,357 2,419 2,821 Gearing

∆ in minority interest 328 282 1,066 631 Total debt (IDRbn) 2,245 2,356 32,224 31,645 Debt/equity (%) CFF -2,236 -18 38,881 -1,506 10.4% 9.3% 112.0% 95.3% Net cash -4,070 3,632 -4,681 1,773 Net cash (IDRbn) -2,482 -6,003 28,546 26,193 beginning balance 8,797 4,727 8,359 3,678 Net debt/equity (%) Net cash Net cash 99.3% 78.9% ending balance 4,727 8,359 3,678 5,451 Source: Company, Mirae Asset Sekuritas Indonesia Research estimates

Mirae Asset Sekuritas Indonesia 6 September 8, 2020 Indofood CBP Sukses Makmur

APPENDIX 1

Important Disclosures & Disclaimers 2-Year Rating and Target Price History Company (Code) Date Rating Target Price (IDR) ICBP Analyst's TP ICBP IJ 9/8/2020 Buy 13,250 8/6/2020 Buy 12,680 15,000 4/9/2020 Buy 11,900 9/27/2019 Trading Buy 13,300 13,000 8/1/2019 Trading Buy 11,800 11,000 5/2/2019 Buy 11,800 3/27/2019 Trading Buy 11,800 9,000 12/6/2018 Trading Buy 11,100 7,000

Sep-18 Sep-19 Sep-20

Stock Ratings Industry Ratings Buy Relative performance of 20% or greater Overweight Fundamentals are favorable or improving Trading Buy Relative performance of 10% or greater, but with volatility Neutral Fundamentals are steady without any material changes Hold Relative performance of -10% and 10% Underweight Fundamentals are unfavorable or worsening Sell Relative performance of -10% * Ratings and Target Price History (Share price (----), Target price (----), Not covered (■), Buy (▲), Trading Buy (■), Hold (●), Sell (◆)) * Our investment rating is a guide to the relative return of the stock versus the market over the next 12 months. * Although it is not part of the official ratings at PT Mirae Asset Sekuritas Indonesia, we may call a trading opportunity in case there is a technical or short- term material development. * The target price was determined by the research analyst through valuation methods discussed in this report, in part based on the analyst’s estimate of future earnings. The achievement of the target price may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.

Equity Ratings Distribution Buy Trading Buy Hold Sell Equity Ratings Distribution 38% 20% 35% 7% *Based on recommendations in the last 12-months (as of June 30, 2020)

Disclosures As of the publication date, PT Mirae Asset Sekuritas Indonesia, and/or its affiliates do not have any special interest with the subject company and do not own 1% or more of the subject company's shares outstanding.

Analyst Certification Opinions expressed in this publication about the subject securities and companies accurately reflect the personal views of the Analysts primarily responsible for this report. Except as otherwise specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and have not been promised the same in connection with this report. No part of the compensation of the Analysts was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report but, like all employees of PT Mirae Asset Sekuritas Indonesia, the Analysts receive compensation that is impacted by overall firm profitability, which includes revenues from, among other business units, the institutional equities, investment banking, proprietary trading and private client division. At the time of publication of this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or PT Mirae Asset Sekuritas Indonesia except as otherwise stated herein.

Disclaimers This report is published by PT Mirae Asset Sekuritas Indonesia (“Mirae Asset”), a broker-dealer registered in the Republic of Indonesia and a member of the Indonesia Exchange. Information and opinions contained herein have been compiled from sources believed to be reliable and in good faith, but such information has not been independently verified and Mirae Asset makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information and opinions contained herein or of any translation into English from the Bahasa Indonesia. If this report is an English translation of a report prepared in the Indonesian language, the original Indonesian language report may have been made available to investors in advance of this report. Mirae Asset, its affiliates and their directors, officers, employees and agents do not accept any liability for any loss arising from the use hereof. This report is for general information purposes only and it is not and should not be construed as an offer or a solicitation of an offer to effect transactions in any securities or other financial instruments. The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common practices, laws and accounting principles and no person whose receipt or use of this report would violate any laws and regulations or subject Mirae Asset and its affiliates to registration or licensing requirements in any jurisdiction should receive or make any use hereof. Information and opinions contained herein are subject to change without notice and no part of this document may be copied or reproduced in any manner or form or redistributed or published, in whole or in part, without the prior written consent of Mirae Asset. Mirae Asset, its affiliates and their directors, officers, employees and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or

Mirae Asset Sekuritas Indonesia 7 September 8, 2020 Indofood CBP Sukses Makmur

otherwise, in each case either as principals or agents. Mirae Asset and its affiliates may have had, or may be expecting to enter into, business relationships with the subject companies to provide investment banking, market-making or other financial services as are permitted under applicable laws and regulations. The price and value of the investments referred to in this report and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur.

Distribution United Kingdom: This report is being distributed by Mirae Asset Securities (Europe) Ltd. in the United Kingdom only to (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (ii) high net worth companies and other persons to whom it may lawfully be communicated, falling within Article 49(2)(A) to (E) of the Order (all such persons together being referred to as “Relevant Persons”). This report is directed only at Relevant Persons. Any person who is not a Relevant Person should not act or rely on this report or any of its contents. United States: This report is distributed in the U.S. by Mirae Asset Securities (America) Inc., a member of FINRA/SIPC, and is only intended for major institutional investors as defined in Rule 15a-6(b)(4) under the U.S. Securities Exchange Act of 1934. All U.S. persons that receive this document by their acceptance thereof represent and warrant that they are a major institutional investor and have not received this report under any express or implied understanding that they will direct commission income to Mirae Asset or its affiliates. Any U.S. recipient of this document wishing to effect a transaction in any securities discussed herein should contact and place orders with Mirae Asset Securities (America) Inc., which accepts responsibility for the contents of this report in the U.S. The securities described in this report may not have been registered under the U.S. Securities Act of 1933, as amended, and, in such case, may not be offered or sold in the U.S. or to U.S. persons absent registration or an applicable exemption from the registration requirements. Hong Kong: This document has been approved for distribution in Hong Kong by Mirae Asset Securities (Hong Kong) Ltd., which is regulated by the Hong Kong Securities and Futures Commission. The contents of this report have not been reviewed by any regulatory authority in Hong Kong. This report is for distribution only to professional investors within the meaning of Part I of Schedule 1 to the Securities and Futures Ordinance of Hong Kong (Cap. 571, Laws of Hong Kong) and any rules made thereunder and may not be redistributed in whole or in part in Hong Kong to any person. All Other Jurisdictions: Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact Mirae Asset or its affiliates only if distribution to or use by such customer of this report would not violate applicable laws and regulations and not subject Mirae Asset and its affiliates to any registration or licensing requirement within such jurisdiction.

Mirae Asset Sekuritas Indonesia 8 September 8, 2020 Indofood CBP Sukses Makmur

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