Non-Current Liabilities a. Long-Term Bank and Non-Bank Financial Institution Loans

15 in Rupiah Description As of December 31, 2016 The Company Income Tax Article 4 2 37,772,400 Article 15 32,996,923 Article 21 200,201,642 Article 22 37,714,275 Article 23 96,795,164 Article 29 of 2016 20,765,451,078 Sub-total 21,170,931,482 Subsidiary Value Added Tax 2,107,191,979 Income Tax Article 4 2 53,182,936 Article 15 18,207,666 Article 21 46,943,458 Article 22 39,566,409 Article 23 331,309,261 Article 25 325,531,399 Article 29 of 2016 19,138,174,147 Article 29 of 2015 231,816,750 Sub-total 22,291,924,005 Total 43,462,855,487

d. Advance from Customers

As of December 31, 2016, the outstanding balance of the Company’s advance from customers was Rp72,604,179,566. The breakdown of the Company’s advance from customers as of December 31, 2016 is as follows: in Rupiah Description As of December 31, 2016 Third Parties PT Karya Cipta Sukses Anugerah 7,008,142,782 PT Karya Cipta Sukses Selaras 3,941,889,521 PT Pakuwon Permai 2,998,550,728 Condor Manufacturing Furniture Ltd. 2,814,789,465 Casana Furniture Corporation 2,339,294,100 Broyhill Furniture Industries, Inc. 1,465,100,000 Others each below Rp1 billion 4,225,050,592 Total 24,792,817,188

2. Non-Current Liabilities a. Long-Term Bank and Non-Bank Financial Institution Loans

in Rupiah Description As of December 31, 2016 The Company Third Parties Exim Transactional export working capital credit facility 54,000,000,000 Export investment credit facility IV 27,747,548,069 PT BCA Finance 894,179,470 PT Orix Indonesia Finance 163,960,968 Sub-total 82,805,688,507 16 Description As of December 31, 2016 Subsidiaries Third Parties PT Bank Negara Indonesia Persero Tbk 98,933,333,331 PT BCA Finance 4,230,106,575 PT Equity Finance Indonesia 949,424,587 PT Astra Sedaya Finance 188,180,895 PT Chandra Sakti Utama Leasing 187,301,569 Sub-total 104,488,346,957 Total 187,294,035,464 Current Maturities 26,475,634,258 Long-term portion 160,818,401,206 The Company In November 2015, the Company obtained a transactional export working capital credit facility and an export investment credit facility IV of up to Rp54,000,000,000 and Rp46,000,000,000, respectively. These facilities will be due in November 2019. In 2016, these facilities bore interest rates of 6.6 per annum for loan denominated in USD, and 10.0 per annum for loan denominated in Rupiah. The facilities are collateralized with certain of the Company’s fixed assets, trade receivables, inventories, as well as personal guarantees from certain Directors. From 2014 to 2016, the Company entered into agreements for the ownership of a vehicle with PT BCA Finance which was payable in monthly installments from 2017 to 2019. This facility bore an interest rate of 2.4 to 5.7 per annum in 2016. In 2016, the Company entered into a loan agreement for a vehicle with PT Orix Indonesia Finance which was payable in monthly installments until 2019. This facility bears a interest rate of 7.4 per annum. Subsidiaries In 2015, Interkraft obtained an investment credit facility from BNI of up to Rp112,000,000,000. This was used for the construction of factories and the purchase of production machinery in Lamongan. This facility is to be paid in 60 monthly installments after the grace period and will be payable until June 16, 2021. This facility was collateralized with the same collateral as that of the short-term loan facilities and bears interest rate of 11.5 per annum. In 2014 to 2016, Intertrend, Interkraft, Belayan and Intera, entered into loan agreements for vehicles with PT BCA Finance which is payable in monthly installments until 2019. These facilities bore an interest rate of 3.1, per annum in 2016. In 2014, Narkata obtained heavy equipment ownership credit facility from PT Equity Finance Indonesia which is to be repaid in monthly installments until 2018. This facility bore an interest rate of 9.14 per annum in 2016. In 2016, Interkayu entered into an agreement for the ownership of vehicle with PT Astra Sedaya Finance which is to be repaid in monthly installments until 2018 and bore an interest rate of 4.69 per annum in 2016. 17 In 2016, Narkata obtained heavy equipment ownership credit facility from PT Chandra Sakti Utama Leasing which is to be repaid in monthly installments until 2019. This facility bore an interest rate of 5.5 per annum in 2016. Compliance with Credit Terms and Conditions As of December 31, 2016, the Group has either complied with all of the terms of the above-mentioned loan agreements as set out in the respective loan agreements or obtained necessary waivers as required.

b. Capital Lease Payables

As of December 31, 2016, the outstanding balance of the Company’s capital lease payables was Rp18,133,341,801, comprising of short-term and long-term capital lease payables of Rp9,093,528,058 and Rp9,039,813,743, respectively, as detailed below: in Rupiah Description As of December 31, 2016 2017 9,626,360,399 2018 9,268,715,622 2019 1,454,168,000 Total minimum payment 20,349,244,021 Less future finance cost 2,215,902,220 Present value of future minimum lease payments 18,133,341,801 Less current maturities 9,093,528,058 Long-term portion 9,039,813,743 The Group entered into a finance lease agreements with PT Orix Indonesia Finance, PT BFI Finance Indonesia Tbk, PT Equity Finance Indonesia and PT Chandra Sakti Utama Leasing, PT BCA Finance, and PT Astra Sedaya Finance, the terms of these finance leases range from 24 to 48 months.

c. Employee Benefits Liabilities

As of December 31, 2016, the outstanding balance of the Company’s employee benefits liabilities were Rp27,231,441,609. The breakdown of the Company’s employee benefits liabilities as of December 31, 2016 is as follows: in Rupiah Description As of December 31, 2016 Balance at beginning of year 19,627,280,409 Current service cost 6,092,118,492 Interest cost 1,766,455,237 Actuarial gain due to change in financial assumption 254,412,529 Balance at end of year 27,231,441,609 The Group recognized a provision for unfunded employee benefits to employees who reach retirement age in accordance with the Law No. 132003 dated March 25, 2003. In the management’s opinion, the post-employment benefits estimate referred to above is sufficient to cover the Company’s post- employment benefits. The calculation of the post-employment benefits as of December 31, 2016, was performed based on actuarial calculation by an independent actuary, PT Dian Artha Tama, with its reports dated February 24, 2017, using the Projected Unit Credit method and based on the following assumptions: 18 2016 Retirement age 55 years Annual rate of increase in salary 5.0 Mortality table TMI – III 2011 Annual discount rate 8.4 Disability rate 0.02 Rate of resignation 5.0 per annum in 18 years old and decrease gradually up to 0 per annum in 55 years old.

d. Deferred Tax Liabilities

The breakdown of the Company’s deferred tax liabilities as of December 31, 2016, is as follows: in Rupiah Description As of December 31, 2016 The Company Employee benefits 3,525,730,188 Financial lease 1,803,930,349 Revaluation surplus of fixed assets 134,809,501,346 Trade receivables 64,715,020 Sub-total 133,022,986,487 Subsidiaries Employee benefits 2,927,483,171 Fixed assets 2,595,491,120 Revaluation surplus of fixed assets 79,465,470,263 Trade receivables 77,994,186 Sub-total 79,055,484,026 Total 212,078,470,513 THE MANAGEMENT HEREBY DECLARES THAT THERE ARE NO VIOLATIONS OF THE TERMS OF THE CREDIT AGREEMENTS ENTERED INTO BY THE COMPANY OR ITS SUBSIDIARIES THAT MAY HAVE A MATERIAL IMPACT ON THE COMPANY AS A GOING CONCERN, INCLUDING THE EXPLANATION OF THE TERMS OF THE CREDIT AGREEMENTS INFRINGEMENT, AND ACTIONS WHICH HAVE BEEN OR WILL BE TAKEN BY THE COMPANY OR THE SUBSIDIARIES INCLUDING THE LATEST DEVELOPMENT ON NEGOTIATION IN THE FRAMEWORK OF CREDIT RESTRUCTURING. \ FROM DECEMBER 31, 2016, BEING THE DATE OF THE INDEPENDENT AUDITOR’S REPORT ON THE COMPANY’S CONSOLIDATED FINANCIAL STATEMENTS, TO APRIL 28, 2017, AND FOR THE YEAR ENDED ON DECEMBER 31, 2016 AND FROM THE DATE OF THE INDEPENDENT AUDITOR’S REPORT UP TO THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT, THE MANAGEMENT, HEREBY DECLARES THAT THERE HAS NOT BEEN ANY NEGLIGENT CONDUCT BY THE COMPANY OR ITS SUBSIDIARIES IN THE GROUP FOR THE PAYMENT OF PRINCIPAL AMOUNT ANDOR INTEREST, INCLUDING THE LATEST DEVELOPMENT ON NEGOTIATION IN THE FRAMEWORK OF CREDIT RESTRUCTURING. ALL OF THE COMPANY’S CONSOLIDATED LIABILITIES AS OF DECEMBER 31, 2016, HAVE BEEN DISCLOSED IN THIS PROSPECTUS. AS OF THE DATE OF THIS PROSPECTUS, THE COMPANY HAS PAID ALL OF ITS CONSOLIDATED LIABILITIES THAT ARE DUE. THERE ARE NO LIABILITIES THAT ARE DUE BUT NOT YET PAID BY THE COMPANY. FROM DECEMBER 31, 2016, TO BEING THE DATE OF THE INDEPENDENT AUDITOR’S REPORT ON THE COMPANY’S CONSOLIDATED FINANCIAL STATEMENTS, TO APRIL 28, 2017, AND FOR THE YEAR ENDED ON DECEMBER 31, 2016, AND FROM THE DATE OF THE INDEPENDENT AUDITOR’S REPORT UP TO THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT, THE 19 COMPANY DOES NOT HAVE ANY OTHER LIABILITIES AND COMMITMENTS OTHER THAN THE LIABILITIES ARISING IN THE ORDINARY COURSE OF BUSINESS AND THE LIABILITIES THAT HAVE BEEN STATED ON AND DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND THIS PROSPECTUS. THE MANAGEMENTHEREBY REPRESENTS THAT THE GROUP HAS THE ABILITY TO MEET THE LIABILITIES DISCLOSED IN THE FINANCIAL STATEMENTS AND PRESENTED IN THIS PROSPECTUS AS THEY FALL DUE. THERE ARE NO NEGATIVE COVENANTS IN EACH OF THE LIABILITIES WHICH THE GROUP IS IN THE PROCESS OF GETTING APPROVAL FOR FROM THE CREDITORS. 20 IV. KEY FINANCIAL HIGHLIGHTS The following table presents the Company’s key consolidated financial highlights. The figures in the Company’s key consolidated financial highlights are derived from the Company’s consolidated statements of financial position as of December 31, 2016, 2015 and 2014, the Company’s consolidated statements of profit or loss and other comprehensive income, as well as the Company’s statements of changes in equity and statements of cash flows for the years ended on December 31, 2016, 2015 and 2014, all of which were audited by Teramihardja, Pradhono dan Chandra Rödl Partner, Registered Public Accountants, with an unmodified opinion and an emphasis of matter in relation to the change in the functional currency of the Company and certain Subsidiaries from USD to IDR. The figures in the Company’s key consolidated financial highlights for the consolidated statement of financial position as of December 31 2016, 2015, and 2014, 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 audited by Teramihardja, Pradhono and Chandra Rödl Partner, Registered Public Accountants. The auditor’s report dated April 28, 2017, which was unmodified and signed by Agustina Felisa, and with an emphasis of matter in relation to the change in the functional currency of the Company and certain Subsidiaries from USD to IDR. The change of the Company’s and its Subsidiaries’ functional currency was in accordance with PSAK 10 Revised 2010 on The Effects of Changes in Foreign Exchange Rates, which required the restatement of the accompanying consolidated financial statements as of December 31, 2015, 2014, and January 1, 2014December 31, 2013, attached herein, by the Group as required by the Indonesian Financial Accounting Standard in its report signed by Agustina Felisia. CONSOLIDATED STATEMENT OF FINANCIAL POSITION In Rupiah Description December 31, 2012 2013 2014 2015 2016 ASSETS CURRENT ASSETS Cash and cash equivalents 22,385,586,066 20,371,538,807 27,003,675,052 116,330,998,235 30,449,572,479 Trade receivables - third parties, net 70,698,364,436 92,894,763,711 126,453,215,078 103,254,127,607 187,911,663,923 Other receivables Related Parties - - - 5,705,000,000 9,705,000,000 Third Parties 42,996,597,049 35,249,397,253 85,975,091,310 83,975,605,783 69,537,812,441 Inventories 352,257,331,533 402,841,557,735 370,729,131,373 575,780,894,734 893,017,247,860 Prepaid taxes 29,400,020,110 33,970,988,735 53,483,073,353 86,641,875,124 57,865,781,855 Prepaid expenses 999,918,298 1,450,140,674 8,185,548,964 8,155,804,028 11,996,020,252 Advances for purchase 8,907,642,620 28,192,884,873 38,666,930,986 29,251,710,800 64,658,888,752 Estimated claim for tax refund - 5,411,964,756 4,381,778,520 2,976,593,074 2,560,280,979 Total Current Assets 527,645,460,112 620,383,236,544 714,878,444,636 1,012,072,609,385 1,327,702,268,541 NON-CURRENT ASSETS Other Receivables 29,582,959,231 21,570,000,000 - - - Advances for purchases 9,024,662,880 11,671,494,154 49,233,418,595 32,135,724,826 83,412,735,768 Deferred tax assets 1,536,037,153 180,186,768 200,573,224 1,557,777,573 3,112,995,737 Fixed assets - net 333,978,074,919 674,898,324,892 745,755,613,017 954,784,745,618 1,642,859,190,372 Investment properties - - - 5,334,000,000 15,880,000,000 Other assets 8,878,057,916 20,312,497,858 11,096,476,681 8,587,664,705 8,907,020,077 Total Non-Current Assets 382,999,792,099 728,632,503,672 806,286,081,517 1,002,399,912,722 1,754,171,941,954 TOTAL ASSETS 910,645,252,211 1,349,015,740,216 1,521,164,526,153 2,014,472,522,107 3,081,874,210,495 LIABILITIES AND EQUITY CURRENT LIABILITIES Bank and non-bank financial institution loans 415,239,245,747 496,693,792,132 592,878,060,190 766,860,659,223 907,825,110,478 Trade payables - third parties 69,865,118,194 66,452,956,850 77,986,237,180 92,080,340,642 72,604,179,566 Other Payables Third Parties 48,266,485,620 21,590,212,524 2,203,632,409 11,607,525,581 5,654,871,991 Accrual Expenses 3,385,317,716 4,938,478,582 13,492,332,427 24,607,397,552 11,449,731,647 Taxes payable 1,752,387,794 3,836,129,976 1,307,234,867 5,171,757,786 43,462,855,487 21 In Rupiah Description December 31, 2012 2013 2014 2015 2016 Advance from customers 9,588,843,800 14,927,158,259 9,153,927,568 25,429,552,176 24,792,817,188 Current maturities of long-term liabilities Bank and non-bank financial institution loans - 105,413,649,771 10,647,141,064 14,666,943,669 26,475,634,258 Obligation under finance lease 12,074,759,190 11,718,343,431 14,890,374,606 8,823,113,862 9,093,528,058 Total Current Liabilities 560,172,158,061 725,570,721,525 722,558,940,311 949,247,290,491 1,101,358,728,673 NON-CURRENT LIABILITIES Long-term liabilities - net of current maturities Bank and non-bank financial institution loans 115,674,836,249 9,477,036,251 2,896,321,840 198,219,164,268 160,818,401,206 Obligation under finance lease 12,723,471,939 5,103,256,605 19,039,788,936 11,072,193,969 9,039,813,743 Other payables Related party - 76,122,623,993 94,510,018,600 82,600,391,671 141,314,372,925 Third parties - - 20,470,000,000 620,400,000 - Deferred tax liabilities 2,343,184,510 47,058,929,941 49,276,052,995 46,102,573,417 212,078,470,513 Employee benefits liabilities 7,329,925,957 12,656,690,603 16,055,031,298 19,627,280,409 27,231,441,609 Total Non-Current Liabilities 138,071,418,655 150,418,537,393 202,247,213,669 358,242,003,734 550,482,499,996 TOTAL LIABILITIES 698,243,576,716 875,989,258,918 924,806,153,980 1,307,489,294,225 1,651,841,228,669 In Rupiah Description December 31, 2012 2013 2014 2015 2016 EQUITY Equity attributable to the equity holders of the parent company Share capital - par value of Rp100 per share in 2016, and Rp1,000,000 per share in 2015, 2014, 2013 and 2012 Authorized capital - 20,000,000,000 shares in 2016, 250,000 shares in 2015, 2014, 2013 and 2012 Issued and fully paid-in capital - 5,000,000,000 shares in 2016, 195,000 shares in 2015, and 100,000 shares in 2014, 2013 and 2012 100,000,000,000 100,000,000,000 100,000,000,000 195,000,000,000 500,000,000,000 Additional paid-in capital 24,045,697,456 24,045,697,456 119,045,697,456 24,045,697,456 25,093,405,789 Exchange difference due to translation of financial statements 51,230,102,645 100,627,151,865 105,769,457,388 141,425,224,187 141,425,224,187 Revaluation surplus of fixed assets – net - 159,897,200,803 155,811,192,447 139,866,947,544 640,440,950,720 Differences equity transactions with non-controlling interest - 510,692,166 510,692,166 510,692,166 1,763,749,431 Retained earnings 29,330,511,387 77,972,229,567 95,450,012,909 165,264,491,867 95,685,208,599 Sub-total 204,606,311,488 463,052,971,857 576,587,052,366 666,113,053,220 1,404,408,538,726 Non-controlling interest 7,795,364,007 9,973,509,441 19,771,319,807 40,870,174,662 25,624,443,100 TOTAL EQUITY 212,401,675,495 473,026,481,298 596,358,372,173 706,983,227,882 1,430,032,981,826 TOTAL LIABILITIES AND EQUITY 910,645,252,211 1,349,015,740,216 1,521,164,526,153 2,014,472,522,107 3,081,874,210,495 Note: audited by Teramihardja, Pradhono Chandra Rödl Partner, Registered Public Accountants, with an unmodified opinion and an emphasis of matter in relation to the change in the functional currency of the Company and certain Subsidiaries from USD to IDR CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME In Rupiah Description For the year ended on December 31 2012 2013 2014 2015 2016 Net sales 723,531,096,947 864,661,692,442 996,105,258,868 1,118,696,671,711 1,323,388,979,039 Cost of goods sold 582,772,257,482 704,985,562,063 836,916,693,334 876,991,059,336 865,229,995,699 GROSS PROFIT 140,758,839,465 159,676,130,379 159,188,565,534 241,705,612,375 458,158,983,340 Selling expenses 21,648,505,013 27,648,289,202 33,182,814,062 45,714,062,523 64,638,717,267 General and administrative expenses 40,260,227,644 48,039,070,893 51,363,844,019 79,944,456,088 110,012,317,898 22 In Rupiah Description For the year ended on December 31 2012 2013 2014 2015 2016 Gain loss on foreign exchange - net 26,456,260,155 8,963,473,651 6,055,309,186 7,297,546,317 9,466,292,727 Interest Expense 32,837,339,068 49,706,414,160 61,416,255,732 67,307,212,559 105,943,138,891 Bank administration charges 1,718,752,959 1,338,508,018 1,212,791,628 3,090,609,915 2,138,867,004 Interest income 290,304,006 218,342,270 222,261,844 749,969,374 893,970,605 Gain loss on disposal of fixed assets 253,931,509 308,662,122 3,074,840,894 18,890,632,216 990,036,967 Miscellaneous - net 4,186,870,067 7,839,421,719 7,168,537,414 8,132,624,499 10,285,055,877 PROFIT BEFORE TAX BENEFIT EXPENSE 22,568,860,208 50,273,747,868 22,384,127,643 42,938,779,264 195,081,224,522 TAX BENEFIT EXPENSE Current 6,533,125,501 6,393,105,871 5,636,464,967 13,771,265,405 58,549,280,250 Deferred 644,776,129 8,089,283,657 1,305,018,788 9,363,792,298 4,549,279,746 Total tax benefit expense - net 5,888,349,372 1,696,177,786 6,941,483,755 4,407,473,107 54,000,000,504 PROFIT FOR THE YEAR 16,680,510,836 51,969,925,654 15,442,643,888 38,531,306,157 141,081,224,018 OTHER COMPREHENSIVE INCOME LOSSES Items that can be reclassified to profit or loss Exchange difference due to translation of financial statements 51,306,485,249 49,649,197,169 8,144,944,662 51,980,001,268 - Items that will not be reclassified to profit or loss Increase decrease on revaluation of fixed assets - net - 160,497,231,388 4,073,415,308 - 506,719,066,642 Remeasurement on employee benefits liabilities - net - 3,373,972,847 236,782,367 1,548,284 190,809,397 Total other comprehensive income 51,306,485,249 213,520,401,404 3,834,746,987 51,981,549,552 506,909,876,039 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 67,986,996,085 265,490,327,058 19,277,390,875 90,512,855,709 647,991,100,057 Profit for the year attributable to: Owners of the parent company 14,642,836,618 51,149,733,145 14,738,392,771 37,891,275,532 140,696,905,072 Non-controlling interest 2,037,674,218 820,192,509 704,251,117 640,030,625 384,318,946 TOTAL 16,680,510,836 51,969,925,654 15,442,643,888 38,531,306,157 141,081,224,018 Total comprehensive income for the year attributable to: Owners of the parent company 67,469,132,467 263,791,391,139 18,534,080,509 89,526,000,854 645,499,410,623 Non-controlling interest 517,863,618 1,698,935,919 743,310,366 986,854,855 2,491,689,434 TOTAL 67,986,996,085 265,490,327,058 19,277,390,875 90,512,855,709 647,991,100,057 BASIC EARNINGS PER SHARE 6.97

24.36 7.02

11.05 43.31

DIVIDEND PER SHARE - - - - 42.90 Note: audited by Teramihardja, Pradhono Chandra Rödl Partner, Registered Public Accountants, with an unmodified opinion and an emphasis of matter in relation to the change in the functional currency of the Company and certain Subsidiaries from USD to IDR KEY CONSOLIDATED FINANCIAL RATIOS Description For the year ended on December 31 2012 2013 2014 2015 2016 Growth Ratios Net Sales 98.19 19.51 15.20 12.31 18.30 Gross profit 89.85 13.44 0.31 51.84 89.55 Profit before income tax benefit expense 77.90 122.76 55.48 91.83 354.32 Profit for the year 79.00 211.56 70.29 149.51 266.15 Comprehensive Income for the year 629.58 290.50 92.74 369.53 615.91 Operating Ratios Profit before income tax benefit expense to net sales 3.12 5.81 2.25 3.84 14.74 Profit before income tax benefit expense to total assets 2.48 3.73 1.47 2.13 6.33 Profit before income tax benefit expense to equity 10.63 10.63 3.75 6.07 13.64 Comprehensive income for the year to net sales 9.40 30.70 1.94 8.09 48.96 Comprehensive income for the year to total assets 7.47 19.68 1.27 4.49 21.03 Comprehensive income for the year to equity 32.01 56.13 3.23 12.80 45.31 Financial Ratios x Current assets to current liabilities 0.94 0.86 0.99 1.07 1.21 23 Description For the year ended on December 31 2012 2013 2014 2015 2016 Non-current liabilities to equity 0.65 0.32 0.34 0.51 0.38 Interest-bearing debt to equity 2.62 1.49 1.23 1.53 0.88 Total liabilities to equity 3.29 1.85 1.55 1.85 1.16 Total liabilities to total assets 0.77 0.65 0.61 0.65 0.54 EBITDAinterest expense on loans 2.64 2.95 2.19 2.53 3.54 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 24 V. MANAGEMENT’S DISCUSSIONS AND ANALYSIS The management’s discussions and analysis on financial condition and operating results presented in this section must be read together with the Company’s consolidated financial statements for the fiscal years ended on December 31, 2016, 2015, and 2014, and related notes, which are presented in Independent Auditor’s Report and the Company’s Consolidated Financial Statement. The discussions and analysis presented below contain forward-looking statements that are subject to a certain level of risks and uncertainties. The Company’s future consolidated financial and operating results may differ significantly with the projections contained in these forward-looking statements. Factors that may cause significant differences from the projections contained in these forward-looking statements are discussed in, but not limited to, the following discussions and other related sections in this Prospectus, particularly Risk Factors. The following discussions have been prepared based on the Company’s consolidated statement of financial position as of December 31, 2016, 2015, and 2014, and consolidated statement of profit or loss and comprehensive income for the years ended on December 31, 2016, 2015, and 2014. The Company’s consolidated financial statement as of December 31, 2016, 2015, and 2014, were audited by Teramihardja, Pradhono Chandra Rödl Partner, Registered Pubic Accountants, with an unmodified opinion and an emphasis of matter in relation to the change of the functional currency of the Company and certain Subsidiaries from USD to Rupiah in its report signed by Agustina Felisa dated April 28, 2017.

1. OVERVIEW