LIMITED PUBLIC OFFERING BUSINESS STRATEGIES AND PROSPECTS

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I. LIMITED PUBLIC OFFERING

A maximum 269,723,076 two hundred sixty nine million and seven hundred twenty three thousand and seventy six registered common shares with nominal value of Rp 100 one hundred Rupiah per share. Every 65 sixty five existing shares whose name is written in the Company’s List of Existing Shareholders as of October 22, 2015 at 16:00 Western Indonesia Time is entitled to 4 four Rights, in which every 1 one Right gives the holder the right to purchase as much as 1 one New Share with an Exercise Price between Rp77,000 seventy seven thousand Rupiah per share, with full payment during the submission of the Additional Share Application Form. This LPO is carried out by the Company in order to fulfill the listing requirement where the total shares owned by non-controlling shareholders and non-majority shareholders at least 50,000,000 fifty million share and at least 7.5 seven point five percent of the number of shares in paid-in capital under provision v.1 of Indonesia Stock Exchange Regulation No. I-A regarding the Listing Of Shares and Equity Securities Other Than Shares Issued By a Listed Company. The number of shares offered in the LPO through Rights Issue is the maximum number of shares that will be fully issued from the portfolio and will be registered in Indonesia Stock Exchange while always considering the regulations in force. The amount of funds to be received by the Company in this LPO is as much as Rp20.768.676.852.000 twenty trillion seven hundred sixty eight billion six hundred seventy six million eight hundred two thousand Rupiah. Shares from LPO have the right equal and to the same degree in all respects including rights to dividends that have been full paid otherwise. Every Right in the form of fractions will be rounded down. Rights can be traded through both IDX or outside IDX in accordance to IX.D.1 for 5 five business days from October26, 2015 to October30, 2015. Listing of shares result from the exercise of rights will be conducted by IDX on October26, 2015 to October30, 2015 hence the Rights that are not exercised up to the particular date will be invalid If the new shares offered in the LPO is not entirely taken up by holders of Rights in the public portion, then the remaining will be allocated to the other public holders who susbscirbe for additional rights beyond their portion, as stated in the Rights Certificate or the Additional Share Application Form proportionally based on rights that have been exercised. If, after the allocation of the additional share subscription, the stock is still residual to the public portion, which is as much as 4,912,725 four million nine hundred twelve thousand seven hundred twenty five common shares, therefore PT Mandiri Securities, acting as the Standby Buyer is obliged to purchase the remaining shares, with the remaining shares shall be purchased by the Standby Buyer excluding shares derived from the exercised Rights in this LPO. PT Phillip Morris Indonesia “PMID” as the primary shareholder of the Company will exercise a portion of its Rights in the LPO which is 600,640 six hundred thousand six hundred and forty Rights, where the remaining amount will akan sold to PT Mandiri Sekuritas based on the Rights Sale and Purchase Agreement dated September 11, 2015 as amended on October 1 2015 made between PMID with PT Mandiri Sekuritas, Rights belonging to PMID in whole or in part will be transferred through sale to PT Mandiri Sekuritas as the appointed Selling Agent, and subsequently PT Mandiri Sekuritas will execerise a portion of the preemptive rights and transfer a portion of those Rights. The resulting shares from the exercise of Rights and the Rights owned by PMID will be offered and sold to domestic and foreign investors through a LPO. Furthermore, PT Mandiri Sekuritas will distribute these shares to the securities account of the investors after the execution of the transaction through the Stock Exchange on the same day of the exercise of Rights owned by PMID by PT Mandiri Sekuritas, ensuring that the number of shares held by the public is 7.5 seven point five percent of the issued and fully paid-in capital and the shares held by PMID amounted to 92.5 ninety-two point five percent of the issued and paid-in capital after the LPO is completed. PT Hanjaya Mandala Sampoerna Tbk Business Line: Cigarette Industry Domiciled in Surabaya, Indonesia Head Office: Jl. Rungkut Industri Raya No. 18 Surabaya 60293, Indonesia Telp.: 031 8431 699; Fax: 031 8430 986 Website: www.sampoerna.com Main Branch Office: One Pacific Place, Lantai 18 Sudirman Central Business District SCBD Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190, Indonesia Phone: 021 5151 234; Fax: 021 5152 234 Email: investor.relationssampoerna.com THE MAIN RISK THE COMPANY THE COMPANY IS DEPENDENT ON THE PRODUCTION AND SALE OF A SINGLE CATEGORY OF PRODUCT, AND ANY MATERIAL DETERIORATION OF THE MARKET CONDITION FOR CIGARETTES MAY ADVERSELY AFFECT ITS BUSINESS AND PROFITABILITY. OTHER BUSINES RISKS CAN BE SEEN ON CHAPTER V IN THIS PROSPECTUS 13 The Company was established in 1963 and located in Surabaya under the name PT Persahaan Dagang dan Industri Panamas with the primary line of business in the cigarette industry. The Company was established based on the Deed of Establishment No. 69 dated October 19, 1963 as amended by Act No. 46 dated April 15 , 1964, made in the presence of Anwar Mahajudin, a notary in Surabaya at the time, which has been approved by the Minister of Justice of the Republic of Indonesia through the stipulation of the Minister of Justice of the Republic of Indonesia No. JA55915 dated April 30 , 1964, and was registered in the public register at the District Court in Surabaya No. 654 and 655 dated May 18, 196 , and was published in BNRI No. 94 dated November 24, 1964, Supplement No. 357. In 1989, the Company changed its name to PT Hanjaya Mandala Sampoerna . Articles of Association have been amended several times and lastly by Deed Amendment No. 21 dated May 12, 2015 made before Aryanti Artisari, SH, M.Kn., Notary in South Jakarta City Administration, and has obtained the approval of Menkumham based on Decree No. AHU-0935168.AH.01.02.YEAR 2015 and Receipt of Notification Amendment No. AHU-AH.01.03-0931826, both dated May 13, 2015, where the shareholders approved the change of the Articles of Association of the Company, among others in order to adapt to the provisions of the OJK regulations . The capital structure and shareholder structure of the company at the time the prospectus issued is as follows: Description Par Value of Rp100 per share Total Shares Total Nominal Value Rp Authorized Capital 6,300,000,000 630,000,000,000 Issued and full paid-up capital: - PT Philip Morris Indonesia 4,303,168,205 430,316,820,500 98.18 - Public 79,831,795 7,983,179,500 1.82 Total issued and full paid-up capital 4,383,000,000 438,300,000,000 100.00 Unissued Shares 1,917,000,000 191,700,000,000 If PMID as the primary shareholder of the Company exercise a portion of its Rights in the LPO that is 600,640 six hundred thousand six hundred and forty Rights, the pro forma composition of the Companys share capital after the LPO are as follows: Description Par Value of Rp 100,- pershare Total Shares Total Nominal Value Rp Authorized Capital 6,300,000,000 630,000,000,000 Issued and Paid Up Capital: - PT Philip Morris Indonesia 4,303,768,845 430,376,884,500 92.50 - Public with ownership of under 5 348,954,231 34,895,423,100 7.50 Total Issued and Paid-Up Capital 4,652,723,076 465,272,307,600 100.00 Unissued Shares 1,647,276,924 164,727,692,400 If PMID as the primary shareholder of the Company exercise a portion of its Rights in the LPO that is 600,640 six hundred thousand six hundred and forty Rights, however minority shareholders do not fully exercise their Rights in the LPO, the pro forma composition of the Companys share capital after the LPO are as follows: Description Par Value of Rp 100,- pershare Total Shares Total Nominal Value Rp Authorized Capital 6,300,000,000 630,000,000,000 Issued and Paid Up Capital: - PT Philip Morris Indonesia 4,303,768,845 430,376,884,500 92.50 - Public with ownership of under 5 344,041,506 34,404,150,600 7.40 - New Shares form Rights Issue not excercised by the Company’s shareholders 4,912,725 491,272,500 0.10 Total Issued and Paid-Up Capital 4,652,723,076 465,272,307,600 100.00 Unissued Shares 1,647,276,924 164,727,692,400 However, this does not rule out the possibility that the shareholders are be able to exercise part of the Rights owned. Existing shareholders who do not exercise their right to purchase New Shares offered in the LPO can experience a material reduction in percentage ownership dilution of the shares up to 5.8. 14 WITHIN 12 TWELVE MONTHS AFTER EFFECTIVENESS OF THE REGISTRATION STATEMENT OF THIS LPO, THE COMPANY WILL NOT PUBLISH OR LIST NEW SHARES OR OTHER SECURITIES THAT ARE CONVERTIBLE INTO SHARES OUTSIDE THE OFFERING OF THE LPO. UNLESS THE ISSUANCE OR LISTING OF SHARES IN ORDER TO FULFILL THE CONDITIONS ANDOR REGULATIONS APPLICABLE TO THE COMPANY ANDOR SHAREHOLDERS SUCH AS TO FULFILL THE LISTING REQUIREMENTS OF WHERE THE NUMBER OF SHARES OWNED BY NON-CONTROLLING SHAREHOLDERS AND NON-MAJORITY SHAREHOLDERS AT LEAST 50,000,000 FIFTY MILLION SHARE AND AT LEAST 7.5 SEVEN POINT FIVE PERCENT OF THE NUMBER OF SHARES IN PAID-IN CAPITAL UNDER PROVISION V.1 INDONESIA STOCK EXCHANGE REGULATION NO. IA REGARDING THE LISTING OF SHARES AND EQUITY SECURITIES OTHER THAN SHARES ISSUED BY A LISTED COMPANY. IF IN THE FUTURE COMPANY INTENDS TO IMPLEMENT THE AFOREMENTIONED, THE COMPANY WILL FOLLOW ALL RULES ANDOR APPLICABLE LAW. 15

II. USE OF PROCEEDS