xxi
Proceeds from the Initial Public Offering, after deducting the aggregate estimated expenses incurred in relation to the Initial Public Offering, shall be used for the following purposes:
• Approximately 90.0 of the net proceeds from the Initial Public Offering shall be used by the Group
to finance capital expenditures, namely: the procurement of machinery and equipments, the acquisition of land and the opening of retail outlets.;
• The remaining shall be used by the Group as working capital, for, among others, financing the
procurement of raw materials and payment of, among others, trade payables, production costs and, marketing expenses.
Further information in relation to the Use of Proceeds is presented in Chapter II of this Prospectus.
6. RISK FACTORS
The business and general risks presented below have been prepared based on the order of significance of the impact of each risks to the Company, from the most significant to the least significant:
A.
MAIN RISK WITH SIGNIFICANT IMPACT TO THE COMPANY’S BUSINESS SUSTAINABILITY
1.
Risk relating to laws and regulations
B.
BUSINESS RISKS
1.
Risk relating to foreign exchange fluctuations for the Company;
2.
Risk relating to the supply of raw materials
3.
Risk relating to fire at production facilities
4.
Risk relating to the increase in the regional minimum wage levels
5.
Risk relating to dependence on major customers
6.
Risk relating to business competition
7.
Risk relating to technological advancement
C.
GENERAL RISKS
1.
Risk relating to macroeconomic and global economic condition
2.
Risk relating to the benchmark interest rate for loans
3.
Risk relating to claims or legal suits
D.
RISK FACTORS FOR INVESTORS
1.
Risk relating to the fluctuation of the Company’s share price
2.
Risk relating to foreign exchange rate fluctuations for foreign investors
3.
Risk relating to the Company’s shares liquidity
4.
Risk relating to the Company ability to pay dividends
5.
Risk relating to minority share ownership Further information in relation to Risk Factors is presented in Chapter VI of this Prospectus.
7. KEY FINANCIAL HIGHLIGHTS
The following table presents the Company’s key consolidated financial highlights. The figures presented in the Company’s key consolidated financial highlights are derived from the consolidated statement of
financial position as of December 31, 2016, 2015 and 2014, and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the years ended on December 31, 2016, 2015 and 2014, which were
xxii
audited by Teramihardja, Pradhono Chandra Rödl Partner, Registered Public Accountants, with unmodified opinion and an emphasis of matter in relation to the change in the functional currency of the
Company and certain Subsidiaries fromUSD to Rupiah.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Description As of December 31
2014 2015
2016 ASSETS
Total Current Assets 714,878,444,636
1,012,072,609,385 1,327,702,268,541
Total Non-Current Assets 806,286,081,517
1,002,399,912,722 1,754,171,941,954
TOTAL ASSETS 1,521,164,526,153
2,014,472,522,107 3,081,874,210,495
LIABILITIES AND EQUITY Total Current Liabilities
722,558,940,311 949,247,290,491
1,101,358,728,673 Total Non-Current Liabilities
202,247,213,669 358,242,003,734
550,482,499,996 Total Equity
596,358,372,173 706,983,227,882
1,430,032,981,826 TOTAL LIABILITIES AND EQUITY
1,521,164,526,153 2,014,472,522,107
3,081,874,210,495
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
Description For the years ended on December 31
2014 2015
2016
Net Sales 996,105,258,868
1,118,696,671,711 1,323,388,979,039
Cost of Goods Sold 836,916,693,334
876,991,059,336 865,229,995,699
Gross Profit 159,188,565,534
241,705,612,375 458,158,983,340
Profit Before Tax Benefit Expense 22,384,127,643
42,938,779,264 195,081,224,522
Profit for the Year 15,442,643,888
38,531,306,157 141,081,224,018
Total Other Comprehensive Income 19,277,390,875
90,512,855,709 647,991,100,057
KEY CONSOLIDATED FINANCIAL RATIOS
Description For the years ended on December 31
2014 2015
2016 Growth Ratios
Net sales 15.20
12.31 18.30
Gross profit 0.31
51.84 89.55
Profit before income tax benefit expense 55.48
91.83 354.32
Profit for the year 70.29
149.51 266.15
Comprehensive income for the year 92.74
369.53 615.91
Operating Ratios Profit before income tax benefit expense to net sales
2.25 3.84
14.74 Profit before income tax benefit expense to total assets
1.47 2.13
6.33 Profit before income tax benefit expense to equity
3.75 6.07
13.64 Comprehensive income for the year to net sales
1.94 8.09
48.96 Comprehensive income for the year to total assets
1.27 4.49
21.03 Comprehensive income for the year to equity
3.23 12.80
45.31
Financial Ratios x Current assets to current liabilities
0.99 1.07
1.21 Non-current liabilities to equity
0.34 0.51
0.38 Interest-bearing debt to equity
1.23 1.53
0.88 Interest-bearing debt to total assets
0.48 0.54
0.41 Total liabilities to equity
1.55 1.85
1.16 Total liabilities to total assets
0.61 0.65
0.54
xxiii
Description For the years ended on December 31
2014 2015
2016
EBITDAinterest expense on loans 2.19
2.53 3.54
Return on total assets ROA 1.02
1.91 4.58
Return on equity ROE 2.59
5.45 9.87
FINANCIAL RATIOS REQUIRED IN LOAN AGREEMENTS OR OTHER LIABILITIES AND THEIR COMPLIANCE
Financial Ratios Required in the Loan Agreements or Other Liabilities The Company’s Financial Ratios as
of December 31, 2016
Current ratio minimum 1x 1.21x
Total liabilities to equity maximum 3x 1.16x
Debt Service Coverage Ratio DSCR minimum 1x 2.85x
Gearing ratiointerest-bearing debt to equity maximum 1.25x 0.88x
Interest Service Coverage Ratio minimum 1x 3.54x
Receivables and inventories to total working capital minimum 110.0 119..07
8. DIVIDEND POLICY
