COMPANY PRESENTATION UPDATE 6M20 PT INDUSTRI DAN FARMASI SIDO MUNCUL TBK PUBLIC EXPOSE IDX Introduction to Sido Muncul Largest herbal product manufacturer in with leading product portfolio and strong financials

Well-established Presence Attractive Financials Numerous Accolades

More than 70 2017-19 CAGR Various awards years of SALES : +9% on Best heritage NPAT : +23% Performance Company 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 Various points payout ratio recognitions in throughout averaging >80% ESG Indonesia and debt free balance sheet

3 Comprehensive range of products with strong brand equity and awareness among Indonesian consumers More than 300 SKUs

HERBAL & SUPPLEMENT FOOD & BEVERAGES PHARMACEUTICAL

63% of revenue 32% of revenue 5% 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 4 * As of 1H 2020 Best-in-class production facility with pharmaceutical-grade certification and advanced technologies Sido Muncul Facility 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 (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

5 Track record of successful and systematic market penetration

SEA and 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, >1 million POS . 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

6 Business and Financial Highlight 1H20 Indonesia’s economy is going to shrink as impact from PSBB during the 2nd quarter and recovery is expected to be happened in 2nd semester. Monthly and Annual Real Sales Growth (%) • There are around 20 cities of Indonesia which apply the mobility restriction (PSBB), and most are big cities - the national economy driver.

• The PSBB caused almost all economy and business activities stopped totally and many communities were economically affected, especially for the middle-to-lower income class. Therefore, consumer purchase power became declining. Monthly RSI Growth (mtm) Annual RSI Growth (yoy)

• Data Real Retail Sales Index by Central Bank of Source: Bank Indonesia Indonesia shows that for the last 3-months having contraction (negative growth), this is also in-line with Indonesia Consumer Confidence Index which Indonesia Consumer Confidence Index falls to below level-100, or pessimistic zone. 125 123 124 126 140 122 118 122 118 114 • Our expectation is the consumer needs at least 3 120 100 85 78 84 months forward for them to recover and return to 80 their normal purchasing / spending activity, with a 60 40 note that the COVID-19 can be handled properly 20 and the PSBB does not re-apply again. 0

Source: Bank Indonesia

8 Product portfolio expansion through continuous product innovation

HERBAL & SUPPLEMENT FOOD & BEVERAGES

As of 1H20, SIDO has launched 14 new products or variants including 7 variants of soft-gel herbal supplement that were launched in the 1Q20. 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 Several key initiatives were implemented to mitigate any risk that potentially disrupted SIDO operational.

• SIDO’s production facility operates normally before and after the PSBB • In 2Q20, SIDO anticipated the risk on raw material supply chain with increasing the inventory level especially for raw material and packaging material • Implementing strict healthy and safety protocol on every working areas. Installing thermal scanners to detect body temperature and sterilizing chamber in the factory, so every worker and visitors who enter to SIDO production facility has to be body temperature checked and walk through the sterilizing chamber first.

• Increases product availability in Modern Trade (MT) – from SIDO’s field observation, business activity in General Trade has started slowing-down during the movement restriction. Most of the consumers currently prefer to do grocery shopping in MT as the perception of MT is more hygiene and less crowded, also the consumer purchase power is still strong in MT channel • Optimizing sales via SIDO’s online stores (sidomunculstore.com), marketplace (Tokopedia, Shopee, etc.), and manufacture direct selling through social media (Instagram, WhatsApp, etc.). • Marketing strategy on emphasizing the benefits of SIDO products to enhance and maintain immune system

10 Financial performance – First Half 2020 in IDR billion / Unaudited)

SIDO managed to maintain growth amidst these challenging times! • As of 1H20, SIDO net sales grew by 4% yoy. This positive performance was still driven by growth on the domestic sales. Domestic demand significantly increased on SIDO healthy beverage products, such as: Vit C 1000 powdered drink and gingery beverages (such as: Susu Jahe, Kopi Jahe, Jahe Wangi, etc.) in 2Q20. • Meanwhile, Herbal & Supplement sales was dragged-down by weak Tolak Angin sales performance in Philippine. Export sales contribution up-to 1H20 relatively stable from the 1Q results, at around 2%. Sales growth per segments as of 1H20 (YoY): • Herbal & Supplement: -2% • Food & Beverage: +16% • Pharmaceutical: +6% • Operating income grew by 7% as of 1H20, driven by declining in Opex by 4.5% due to the implementation of cost efficiency strategy. The A&P to sales ratio in 1H20 was 8%, below maximum target at 13%. Strong performance in F&B segment, coupled with all of the cost efficiency initiatives were driving the net income increased by 11% (YoY).

11 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. Q&A Session 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.

14 PT INDUSTRI JAMU DAN FARMASI SIDO MUNCUL TBK

HEAD OFFICE: Office Sido Muncul, Lt 1, Gedung Hotel Tentrem Jl. Gajahmada No. 123 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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