MANAGEMENT PRESENTATION FINANCIAL STATEMENTS 31 March 2019 2 TABLE - PowerPoint PPT Presentation

MANAGEMENT PRESENTATION FINANCIAL STATEMENTS 31 March 2019

2 TABLE OF CONTENTS Company Overview Business Overview Strategy & Projection in 2019 Performance 1Q 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 APPAREL RETAIL RAW MATERIAL GREIGE DYED FABRIC 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 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 • Top 5 GCG issues in Textile and “Our company is growing rapidly from Garment Sector by Warta Ekonomi • The Best Blue 2017 Award PT Sri Rejeki year to year with a strong Fundamental • The Top 50 Company for 2018 – from IDX Isman Tbk Best of the best awards by • Most Powerfull officially and continuous expansion” Forbes Indonesia Companies 2017 Category listed its • Best CEO Iwan Setiawan Textile & Garment from initial shares Lukminto by Bisnis Indonesia Achieved Warta Ekonomi (with ticker Award 2018 vertical • Best Liability Became code SRIL) on • Excellent Growth for Multi integration Management – Asset Asian a military the Indonesia Industry Sector by Bisnis and Award 2016 by Triple A. uniform Stock Indonesia Award 2018 expanded • The Top 50 Company For supplier Exchange Established 2016 – Best of the Best production for . the first 2013 Awards, Forbes Indonesia. capacity to 4 NATO 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 finished and 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 BOARD OF COMMISIONERS BOARD OF DIRECTORS

9 COMPANY STRUCTURE FOUNDER PT HUDDLESTON PUBLIC *) SHARES INDONESIA 1.07% 59.03% 39.90% 99.996955% 99.99736% PT SRI REJEKI ISMAN TBK PT BITRATEX PT PRIMAYUDHA (SRIL-ID) INDUSTRIES MANDIRI JAYA 99.90% 0.00264% PT SINAR PANTJA DJAJA 0.003045% Indonesia Singapore 100.00% GOLDEN LEGACY PTE LTD 100.00% 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 FY 2018 US$ 1,003.9 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 1H 2018 1H 2018 Million USD Million USD Yarn, Fabric India 449 Vardhman Textiles Ltd Indonesia Greige, and 28,71 PT. Ever Shine Tex Tbk (ESTI) Fabric Knitwear China 1,373 Shenzhou Int. Group PT. Pan Brothers Tbk Garment Indonesia 549,35 Yarn China 1,321 (PBRX) TEXHONG Textile (FY 2017) Garment Taiwan 336 Makalot Industrial Co Ltd Garment India 504 Arvind Limited Knitwear Taiwan 445 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 Sales By Geographical Area Textile Export Market Share in 2017 FY 2018 1Q 2019 Market Share Global Market Share China Europe, Europe, America, Singapura 30% America, 4% Kamboja 10% 9% 3% UAE & 7% 9% Africa, Vietnam UAE & 30% Australia, India Africa, 6% 7% Row Australia, Malaysia 22% 12% 7% SEA Thailand 9% 15% Domestik, Asia, 37% Domestik, Asia, 37% 47% 40% Japan USA Germany 2% Pakistan 5% 5% Turkey Indonesia 3% 4% 30% Hong Kong Italy Taiwan 3% Korea 4% 3% 4% Regional Minimum Wage Comparisons Between Countries in 2018 Indonesian Textile Exports 2003-2017 2018 minimum monthly wages of comparison countries Source : Trading Economics DAILY MIN WAGE MONTHLY MIN WAGE COUNTRY (US$) (US$) Malaysia 7.59 – 8.25 227.75 – 247.55 Thailand 9.31 – 9.98 279.44 – 299.4 9.6 China 5.04 – 11.03 151.09 – 330.88 7.7 Indonesia 3.11 – 7.81 93.41 – 234.32 2.9 3.0 3.4 3.6 3.8 3.7 3.2 4.1 4.8 4.5 4.6 5.2 6.0 – Sukoharjo – 113,33 Vietnam 4.84 – 5.46 145.08 – 163.87 Pakistan 3.57 104.04 Bangladesh 2.12 63.54 Cambodia 5.67 170.00 200320042005200620072008200920102011201220132014201520162017 (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 Increase market share and economic of scale through opportunity in acquisition Strengthening the Capital Structure and Liquidity • Sales: + 10-15% • Net Income: 10-15%

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