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3Q 2019 RESULT PRESENTATION

PT MALINDO FEEDMILL TBK

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COMPANY OVERVIEW

3Q/2019 HIGHLIGHTS

INVESTMENT HIGHLIGHTS

Nov 7th, 2019

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COMPANY OVERVIEW

UPSTREAM MIDSTREAM DOWNSTREAM

FEED BREEDINGCOMMERCIAL

FARMINGFOOD

PROCESSING

Vertically integrated business

Nov 7th, 2019

Attractive, fast growing industry

Top 3 integrated player

Secured growth plan

Upside from Processed food (CBP) segment

Highly experienced management with strong governance

Productive age employees

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KEY INVESTMENT HIGHLIGHTS

Nov 7th, 2019

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Chicken consumption in Indonesia keeps growing and forecasted to be even stronger in 2023

Indonesia’s middle class is growing, adding 80million people in the middle class by 2020

Chicken is the most affordable animal protein after eggs Indonesia has one of the lowest chicken consumption in SE Asia

Source: Badan Pusat Statistik (2018) and Indonesia Finance Ministry (2019) , Indonesia State Budget, FAOStats, BPS, IMF, USDA, World Bank, Kompas daily, LEK Consulting, McKinsey, OECD, Company

Protein sourcePrice/kg

(IDR)Protein content

Protein Price/g

(IDR)

Egg 23,500 12.5% 188

Chicken (broiler) 35,000 18.5% 189

Fresh milk 25,000 3.5% 714

Beef 190,000 20.0% 950

Fish 167,500 17.5% 957

47.0 46.0

16.0

9.0 10.5 13.6

2.0

38.8

10.6

5.8 2.5 3.6

1.5 0.8

Brunei Malaysia Thailand Philipines INDONESIA Vietnam Cambodia

Chicken consumption percapita (kg/ year)

Income per capita (USD1,000)

Investment highlight #1: Attractive, fast growing industry

217,500 242,500

264,000 265,000 271,000

15,225

45,000 58,080 60,000

80,000

2002 2010 2017 2018 2020

Indonesia total population Middle class population

('000 people)

2,141

2,382

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Historical

Trajectory

(‘000 tons)

Nov 7th, 2019

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Indonesia feed production capacity share (2018) Indonesia DOC production capacity share (2018)

Source: Company (2018)

35%

25%

8%

4%

8%

20%CPIN

JPFA

MAIN

NEW HOPE

CJ

Others

38%

25%

7%

5%

25% CPIN

JPFA

MAIN

NEW HOPE

Others

Investment highlight #2: Top 3 integrated player and well-positioned in the market supported by strategic locations

Legends Division2019 Annual

CapacityLocations

Feedmill 1,500,000 MT Cakung, Cikande, Gresik, Semarang, Makassar, Lampung

GPS Breeding

3.2 mn DOCs Majalengka

PS Breeding 258 mn DOCsMedan, Lampung, Subang, Cikaum, Purwakarta, Wonosari, Probolinggo, Lumajang, Pontianak, Banjarmasin, Makassar, Pekanbaru, Palembang, Rembang,

Broiler 77.5 mn kg Medan, Subang, Bogor

Food Processing

9,000 MT Cikarang

Nov 7th, 2019

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Broiler capacity (MT)Feed capacity (MT)

7957

Capex (IDR bn)

64 26223

CAGR23,3%

116

Investment highlight #3: Growth plan with sufficient cashflow to fund capex

Projected Capex of IDR 455 bn in 2019 will enable Malindo to capture the increasing demand

• Maximize the production utilization isexpected to improve EBIT margin througheconomies of scale (target utilization inFY2019 : 75%-80% of optimal capacity)

• Expanding capacity to 77,500 tons inFY2019 to support the growth inprocessed food & chicken consumption

DOC capacity (Mn birds)

167 77244

CAGR2,3%

• Expanding production capacity with atarget of 270 Mio chicks in FY2019

• Malindo expects to add 7% - 10%production volume per annum to supportprojected market recovery.

Nov 7th, 2019

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Consumer Foods capacity (MT)

Capex (IDR bn)

052

Investment highlight #4: Upside from Processed food (CBP) segment

Nov 7th, 2019

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Investment highlight #4: Upside from Processed food (CBP) segment

DISTRIBUTION MAPCUSTOMER AND OUTLET GROWTH

Reputation as high quality producer, solid track record with diverse customer base

Nov 7th, 2019

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Investment highlight #5: Highly experienced management with strong governance

Lau Chia Nguang Tan Lai Kai Yongkie Handaya Brian M. O ’Connor Koh Bock Swi(Raymond Koh)President Commissioner Commissioner* Independent Commissioner* Independent Commissioner*

Independent Commissioner*

Year of Poultry experience:

More than 40 years

Year of Manufactureexperience:

More than 25 years

Year of Finance experience:

More than 20 years

Year of Finance experience:

More than 40 years

Year of Poultry experience:

More than 25 years

*): Professional

Tan Sri Lau Tuang Nguang

Mazlan Bin A. Talib Rewin Hanrahan Lau Joo Hwa Lau Joo Keat Rudy Hartono Husin Dato’ Seri AbdulAzim Bin Mohd ZabidiPresident Director

Director* Director* Director Director Director*

Director*

Year of Poultry experience:

More than 30 years

Year of Agriculture experience:

More than 30 years

Year of Poultry experience:

More than 25 years

Year of Poultry experience:

More than 15 years

Year of Poultry experience:

More than 15 years

Year of Finance experience:

More than 20 years

Year of Finance experience:

More than 20 years

Nov 7th, 2019

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Investment highlight #5: Highly experienced management with strong governance

*): Professional

Aldrin RungkatFeedmill Director*

Tan Sri Lau Tuang Nguang

President Director

Lau Joo HwaOperation Director

Lau Joo KeatBreeder Farming Director

Rudy Hartono HusinFinance Director*

Rewin HanrahanMarketing Director*

Hilda WibowoHR Director*

Nov 7th, 2019

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Investment highlight #6: Productive age employees

40%

37%

23%

Company's employee category by age

20 - 29 years 30 - 39 years > 40 years

Nov 7th, 2019

DOC & Broiler Average Selling PriceGovernment initiatives ensuring stable DOC

& chicken prices and supply-demand dynamics

Q3/2019

Consumer demand projected to improve with strong support by macro conditions

GDP growth: 2020 5.3 – 5.6% (2019 c. 5.3%)

Feed margins to benefit from volume growth, particularly expanding to swine

feed and duck feed

Consumer food volume continues increasing by boosting the sales through social media

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3Q/2019 HIGHLIGHTS

Nov 7th, 2019

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EBITDA

REVENUE

FINANCIAL PERFORMANCE

NET PROFIT

EBIT MARGIN

3Q (Y-Y) 9M (Y-Y)1.8% 17.7%

3Q (Y-Y)9M (Y-Y)

-19% -3%

Nov 7th, 2019

67,495,896 49,460,570

225,595,279 195,396,711

Q3/2018 Q3/2019 9M18 9M19

3Q (Y-Y) 9M (Y-Y)-26.7% -13.4%

1,765,873,460 1,797,342,247

4,838,505,762

5,669,502,891

Q3/2018 Q3/2019 9M18 9M19

199,776,891 160,845,873

565,229,612 546,471,631

11.3%

8.9%

11.7%

9.6%

8.0%

9.0%

10.0%

11.0%

12.0%

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

Q3/2018 Q3/2019 9M18 9M19

EBITDA EBITDA (%)

4.3%

5.7%

6.7%6.1%

Q3/2018 Q3/2019 9M18 9M19

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CAPEX

TOTAL ASSETS

FINANCIAL PERFORMANCE

NET DEBT/ EQUITY

TOTAL INTEREST BEARING DEBT

3Q (Y-Y) 10%

3Q (Y-Y) 11%

3Q (Y-Y) 15%

Nov 7th, 2019

4,349,412,672

4,765,416,226

Q3/2018 Q3/2019

78,273,675

122,433,107

238,683,114 267,234,810

Q3/2018 Q3/2019 9M18 9M19

3Q (Y-Y) 56% 9M (Y-Y) 12%

1,820,187,614

2,012,919,339

Q3/2018 Q3/2019

0.82

0.94

Q3/2018 Q3/2019

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SALES3Q (Y-Y)

10 %

SEGMENT PERFORMANCE

FEEDMILL

26 %SALES

9M (Y-Y)

Nov 7th, 2019

1,033 1,139

2,819

3,561

26.2 180 163

414 2.5%

15.8%

5.8%

11.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q3/2018 Q3/2019 9M18 9M19

16

-24%

BREEDER

SEGMENT PERFORMANCE

SALES3Q (Y-Y)

7%SALES

9M (Y-Y)

Nov 7th, 2019

408

311

1,016

1,091

119.6

(46.0)

203.1

49.2

29.3%

-14.8%

20.0%

4.5%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

(200)

-

200

400

600

800

1,000

1,200

Q3/2018 Q3/2019 9M18 9M19

FOODBROILER

17

SEGMENT PERFORMANCE

SALES3Q (Y-Y)

3 % 0.0005 %SALES9M (Y-Y)

SALES3Q (Y-Y)

41 % 14 %SALES9M (Y-Y)

29

41

99

113

(10.6) (10.3)

(35.8)(28.4)

-36.5%

-25.2%

-36.0%

-25.1%

-40.0%

-35.0%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

(60)

(40)

(20)

-

20

40

60

80

100

120

140

Q3/2018 Q3/2019 9M18 9M19

Nov 7th, 2019

296 306

905 905

1.2

(16.1)

55.3

(52.9)

0.4%

-5.3%

6.1%

-5.8%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

(200)

-

200

400

600

800

1,000

Q3/2018 Q3/2019 9M18 9M19

Nov 7th, 2019

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THANK YOU

www.malindofeedmill.com

Sunny Gold

@sunnygoldid

@sunnygoldid