MANAGEMENT PRESENTATION FINANCIAL STATEMENTS 30 June 2019 2 TABLE - PowerPoint PPT Presentation

MANAGEMENT PRESENTATION FINANCIAL STATEMENTS 30 June 2019

2 TABLE OF CONTENTS Company Overview Business Overview Strategy & Projection in 2019 Performance 2Q 2019

3 COMPANY OVERVIEW • A Leader in Southeast Asia’s Textile Industry 1 • Vertically Integrated Textile and Garment Company 2 • Strategic Locations 3 • Milestones 4 • Board of Commissioners and Directors 5 • Company Structure 6

4 A LEADER in SOUTHEAST ASIA’s TEXTILE INDUSTRY PT Sri Rejeki Isman Tbk (“ Sritex “) is one of the largest vertically integrated textile companies in SE Asia, with operations across Spinning, Weaving, Finishing and Garment Manufacturing, located in Central Java, Indonesia. COMPANY OVERVIEW  One of the largest vertically-integrated textile garment companies in SE Asia.  Established by the Lukminto family with history dating back to 1966; headquarter in Sukoharjo, Central Java, Indonesia.  Product portfolio comprises yarn, greige, fabric, as well as military and corporate uniform and fashion clothing.  Strong and diversified customer base with presence in over 100 countries.  Strong reputation with numerous awards and accreditations; ISO 9001 & ISO 14001 Certified Company  Listed on the Indonesia Stock Exchange since June 2013 SPINNING WEAVING FINISHING GARMENT Capacity 30 million Capacity 1,100,000 Capacity 180 million Capacity 240 million pieces/year bales/year metre/year yards/year

VERTICALLY INTEGRATED TEXTILE 5 & GARMENT COMPANY UPSTREAM MIDSTREAM DOWNSTREAM RETAIL RAW MATERIAL GREIGE DYED FABRIC APPAREL YARN 60% RAYON SPINNING WEAVING FINISHING GARMENT 20% 20% COTTON WORLDWIDE 20% POLYSTER CAPACITY CAPACITY CAPACITY CAPACITY 180 Mn Meters/Year 240 Mn Yards/Year 30 Mn Pieces/Year 1,100,000 Bales/Year 75%-80% 15%-20% 100% 60%-70% SOLD OUTSIDE SOLD OUTSIDE SOLD OUTSIDE SOLD OUTSIDE Four main production processes of Sritex: Spinning, Weaving, Fabric Finishing and Garment are vital to the integration of the Company’s Business.

6 STRATEGIC LOCATIONS SPD: Area~18ha Tanjung Emas International Port, Semarang BItraTex Area~23.74ha Primayudha Mandiri Jaya Area~22.07ha Sritex 2: Central Java, Indonesia Area~22.85ha Total Area ~ 128.66ha Total Population: 35 Million peoples Sritex 1: Area~42ha Production facilities situated in a region with heavy Unique competitive advantage through offering its customers integrated solutions focus on textiles and close proximity to low-cost and supported by economic of scale, consistent high quality, shorter lead times, skilled workforce. And 2 hours to international port. enhanced operational and cost efficiency, leading to competitive pricing policies.

7 MILESTONES Present 2017 • The Best Listed Company “Our company is growing rapidly from Category Miscellaneous Industry By Business Indonesia 2019 • The Best Blue 2017 Award PT Sri Rejeki year to year with a strong Fundamental • Top 5 GCG issues in Textile and from IDX Isman Tbk Garment Sector by Warta • Most Powerfull officially and continuous expansion” Ekonomi Companies 2017 Category listed its • The Top 50 Company for 2018 – Textile & Garment from initial shares Best of the best awards by Achieved Warta Ekonomi (with ticker Forbes Indonesia vertical • Best Liability Became code SRIL) on • Best CEO Iwan Setiawan integration Management – Asset Asian a military the Indonesia Lukminto by Bisnis Indonesia and Award 2016 by Triple A. uniform Stock Award 2018 expanded • The Top 50 Company For supplier • Exchange Excellent Growth for Multi Established 2016 – Best of the Best production for Industry Sector by Bisnis . 2013 Awards, Forbes Indonesia. the first capacity to 4 NATO Indonesia Award 2018 finishing Registered Iwan S. Lukminto • Rank-1 For Textile and business and the at the began to engage in Garment Group – Economic plant Established segments: German Review. Ministry of a leadership role. that Spinning, weaving army. Industry 1997 produces Weaving, factory 1994 and finished Finishing , with 1,000 fabric established Garment weaving Founded by H.M. as a limited and 1992 machines Lukminto as a liability whitening 1982 traditional company materials trading company (putihan) in 1978 in Pasar Klewer, Solo. Solo. The textile 1968 center market in central java 1966

7 8 BOARD OF COMMISIONERS AND DIRECTORS

9 COMPANY STRUCTURE PT. Huddleston Indonesia Founder Shares Public 1.1% 59.0% 39.9% PT. Sri Rejeki Isman, Tbk 99.9% 99.9% 99.9% 100.0% PT. Bitratex Industries PT. Primayudha Mandiri Jaya PT. Sinar Pantja Djaja (“SPD”) Golden Legacy Pte Ltd (“ Bitra ”) (“Prima”) 100.0% Golden Mountain Textile and Trading PTE Ltd.

10 BUSINESS OVERVIEW • Customers 1 • Competitors 2 • Textile Industry Overview 3

11 CUSTOMERS “ Sritex has a broad and diversified network of customers both domestic and international level” YARN Sritex is a major supplier of high quality yarn for major textile customers globally. SPINNING GREIGE Sritex greige or raw fabric is renowned for its excellent standard and high quality. WEAVING

12 FABRIC Sritex high-quality fabric is both extremely Pan Brothers Tbk comfortable and classy. It is a reputable brand within a competitive fashion industry. FINISHING

13 Garment Uniform - Military Uniform - Corporate Fashion Sritex is a leading partner in supplying Sritex’s flexibility allows penetration into Sritex also manufactures uniforms for military uniforms to more than 30 the international fashion market, with Indonesian companies, for work-wear countries since 1993 and has become many leading international players as its international companies and also uniforms supplier for German militatry uniform with clients for government agencies high specification. Ambler Swarna IGM Hospital PPUM Syaf Co Maxx

14 COMPETITORS “Relative to its domestic competitor. Sritex is the market leader with 2Q 2019 US$632 Million” Sritex is in a fairly competitive position within the textile industry in Indonesia. According to the Indonesian Textile Association ("API"), the textile industry in Indonesia is still fragmented with 2,930 textile companies in 2014. According to the Ministry of Industry Indonesia, about 2,600 textile companies are still using machines older than 20 years, companies using newer machines are considered to have a greater competitive advantage and Sritex is one of the few companies that does. COMPETITOR PRODUCT COUNTRY SALES COMPETITOR PRODUCT COUNTRY SALES FY 2018 FY 2018 Million USD Million USD Yarn, Fabric India 875 Vardhman Textiles Ltd Indonesia Greige, and 35 PT. Ever Shine Tex Tbk (ESTI) Fabric Knitwear China 3,143 Shenzhou Int. Group PT. Pan Brothers Tbk Garment Indonesia 611 Yarn China 2,873 (PBRX) TEXHONG Textile Garment Taiwan 737 Makalot Industrial Co Ltd Garment India 247 (1Q 2019) Arvind Limited Knitwear Taiwan 887 Eclat Textile Co. Ltd Competitor Military Uniform (Domestic) : PT. APAC Inti Corpora (Bawen-SMG), PT. Mulia Knitting (Kalideres-JKT), PT. Daya Mekar Teksindo (Batu Jajar-West Java), PT. Yuntex (Bandung-West Java), and PT. Bhinneka Karya Manunggal (Karawang). Competitor Military Uniform (International) : Iturri (Spain), Fecca (Spain), Saintex (Belgium), Cooneen Watts & Stone (UK), Vaife (Holland), Kwintet Sverige (Holland), Oskar Pederson (Norway), and Sari Leo Mihob (France).

15 TEXTILE INDUSTRY OVERVIEW “With the rising labor cost in China and labor issues in Bangladesh, Indonesia now becoming more favorable place for investment” Sales By Geographical Area FY 2018 Sales By Geographical Area 2Q 2019 Europe, 9% Europe, 9% America, 7% UAE & America, 8% Africa, UAE & Africa, Australia, Australia, 6% 7% Domestik, Asia, 37% Domestik, 40% Asia, 37% 40% Regional Minimum Wage Comparisons Between Countries in 2018 Indonesian Textile Exports 2005-2018 2018 minimum monthly wages of comparison countries Source : Trading Economics Source: API DAILY MIN WAGE MONTHLY MIN WAGE COUNTRY (US$) (US$) 7.59 – 8.25 227.75 – 247.55 Malaysia 9.31 – 9.98 279.44 – 299.4 Thailand 14.6 5.04 – 11.03 151.09 – 330.88 China 13.2 3.11 – 7.81 93.41 – 234.32 Indonesia 9.6 – – Sukoharjo 113,33 7.7 3.4 3.6 3.8 3.7 3.2 4.1 4.8 4.5 4.6 5.2 6.0 4.84 – 5.46 145.08 – 163.87 Vietnam Pakistan 3.57 104.04 Bangladesh 2.12 63.54 Cambodia 5.67 170.00 200520062007200820092010201120122013201420152016201720182019 (a) 2018 minimum wage of Rp. 1,648,000 converted at IDR/USD = 14,798

16 STRATEGY & PROJECTION IN 2019 Normalization of New Production Production and Operational Effeciency Inovation for value added product development Development and enhancement for Human Resource Strengthening the Capital Structure and Liquidity • Sales: + 10-15% • Net Income: UPTO 10%

17 PERFORMANCE 2Q 2019 • Financial Summary 1 • Balance Sheet 2 • Capital Structure 3 • COGS Composition in 2Q 2019 4 • Sales Segmentation 5

18 FINANCIAL SUMMARY The increase in domestic and international sales had a positive impact on the company’s fast -growing profitability SALES GROSS PROFIT AND GROSS PROFIT MARGIN 759 (USD.Mn) (USD.Mn) 171 632 544 131 98 22.60% 20.76% 18.01% 2017 2Q 2018 2Q 2019 2017 2Q 2018 2Q 2019 NET PROFIT AND NET PROFIT MARGIN (USD.Mn) 68.0 63.2 56.3 10.36% 10.01% 9.00% 2017 2Q 2018 2Q 2019