1Q 2017

Agenda

1 Company Overview

2 Key Investment Highlights

3 KKRs Investment in the Company

4 Financial and Operational Highlights

1
1. Company Overview

2
Company overview
Core competencies across the value chain

Upstream Midstream Downstream

Feed Breeding Commercial farming Processing

Poultry

Beef

Aquaculture

3
Industrialized approach drives operational and financial
benefits
A Scale
2nd largest feed and DoC producer in Indonesia with
significant scale across the value chain:
16 feed mills, 66 breeding farms and 24
hatcheries across Indonesia
Over 100 company farms and over 9,000 contract
farms
Consolidated procurement of raw materials with the
broader Japfa Group
C Biosecurity & animal health
Advanced biosecurity measures for disease
prevention and control, comprising (i) isolation; (ii)
sanitation and disinfection; and (iii) traffic control
Stringent process adherence to prevent diseases
In-house vaccine R&D and production unit, PT
Vaksindo, improves efficacy and shortens response
time to disease outbreaks
B Technology & genetics
Exclusive relationship with Aviagen for the sourcing of
grandparent stock with superior genetics which is
tailored for the Indonesian climate
Advanced feed technology for quality control and
optimal feed conversion ratios
Modern farming techniques and industry best
practices to further drive efficiency
D Standardization
Ability to replicate farming best practices and
infrastructural design across feed mills, breeding
farms and hatcheries
Mechanized production processes and established
SOPs allow for consistency
Opportunity to tap human resources across the Japfa
Group facilitates standardization
4
Japfa: Well positioned for long-term growth
Poultry leader with growing presence in other proteins

Cattle fattening
business in Indonesia
Aquaculture is primarily a
feed business with some
farming overlay
Protein diversification
Aquaculture
strategy for varying
6%
consumer preferences
Core business and stable segment of
the value chain
Cost plus pricing model allows the
Company to pass on any adverse
commodity / FX price movement
Others
Cattle
4% 2nd largest player in Indonesia
4%

Poultry Feed Poultry-related activity:

Commercial 45% 86% of total revenue
Farming and
Consumer
Products
30%
Comprises of both in-house and Stable and growing
contract farms; growing proportion of core business
in-house farms to enhance
traceability Day Old Chick
11% FY2016 revenue: IDR 27.0 trillion
DOC and Commercial Farming help
drive sales volume for feed business
Shift downstream via investing in 2nd largest day-old chick (DoC)
more slaughterhouses in order to producer in Indonesia
reduce exposure to fluctuating farm Diversification efforts
gate prices
to position company
for long-term growth

5
2. Key Investment Highlights

6
Investment highlights

1 Attractive industry dynamics driven by strong structural growth in protein consumption

2 Leading integrated poultry national champion with nationwide footprint

3 Core feed business offers stable profitability

4 Japfa Ltd: A Leading Pan-Asian Industrialized Agri-Food Company

5 Experienced and tenured management team

7
1 Attractive industry dynamics driven by strong structural
growth in protein consumption
Ample room for sustained growth in business locations with one of the lowest poultry consumption
per capita rates in Asia.

Strong projected growth in GDP per capita to underpin growing protein consumption

Meat-of-choice given poultrys relative affordability, religious neutrality, consumer preference and
increasing penetration and popularity of quick service restaurants

Potential upside as Indonesians diet evolve to include more meat-based protein from the currently
carbohydrate-heavy diets
Positive correlation between GDP per capita and Poultry
Poultry Meat Consumption meat consumption (2015)
per capita in Asia
(kg per capita - 2015) Rising Consumption in Emerging Asian Markets

60
Malaysia 47.5
Consumption / Capita (Kg) United States
50 Malaysia
Philippines 11.7
40 Saudi Arabia
Brazil
Argentina
Indonesia 10.1 Canada
Singapore
30 South Africa
Mexico
Vietnam 9.9
20 Philippines

China 9.3 10 Vietnam

Indonesia
India
0
0 10,000 20,000 30,000 40,000 50,000 60,000
GDP / Capita (USD)
Source: Frost & Sullivan Estimates, 2017 Source: OECD, UN, Frost & Sullivan Estimates, 2017

8
2 Leading integrated poultry national champion with
nationwide footprint
2nd largest Indonesian poultry feed and DoC Nationwide footprint with presence in all major
producer islands
Poultry feed production capacity market share (%)

34%
31%
Japfa is the largest indigenous
22% Indonesian poultry player

6% 4%

CP Japfa CJ Malindo Others

DoC production capacity share (%)

41%

25%
21%

8% 6%

CP Japfa Malindo Sierad Others

Attractive industry dynamics with CP and Japfa jointly
controlling >50% of the feed and DOC markets
Significant economies of scale given procurement volume
of raw materials, especially in conjunction with the broader
Japfa Group
Logistical feat given that Indonesia is an archipelago;
serves as a barrier to entry and helps defend the
Companys market position
Wide geographical reach offers unparalleled access to both
poultry farmers and domestic corn producers

Heritage of 40 years in the poultry industry provides brand Key to tapping pockets of demand across the country given
recognition the highly localized market, which is a result of (i)
preference for live birds; and (ii) underdeveloped cold chain
and transportation infrastructure

Source: Frost and Sullivan (May 2014), Company information

9
3 Core feed business offers stable profitability
Constitutes >50% of Groups operating profit
Despite volatile commodity prices and weakening IDR
220 15,500
200
180
13,000
160
140 +42% since
Jan 2010
120
10,500
100
80
60 8,000
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Soybean Meal Corn

the Groups feed business has been able to consistently deliver stable gross margins, underscoring the
ability to effectively pass on adverse currency and commodity price movements

20%
Average: 14%
LTM Gross Margin (%)

16%

12%

8%

4%

0%

Source: Bloomberg, Company information

10
3 Core feed business offers stable profitability
Poultry: 4-year segmental trends

Revenues (IDR Billion) Operating Profit (IDR Billion) Operating Profit Margin (%)

30,923 20%
28,396 28,592 3,191 17.5%
15% 16.1%
24,766 348 11.6% 10.9% 13.4%
10,899 9.7% 10.7%
9,412 10,270 690 10% 6.8%
7,608 1,909 7.8% 5.1%
1,963 1,517 3.7%
3,955 5%
2,523 3,157 117 383 3.2%
2,785 1.5%
449 0%
-0.5%
1,910 2,153 -5% -4.1%
14,373 16,461 15,165 16,069 1,655
1,397
-10%

(350) (129) -15%

-13.9%
(43)
FY2013 FY2014 FY2015 FY2016 -20%
FY2013 FY2014 FY2015 FY2016 FY2013 FY2014 FY2015 FY2016
Feed Breeding Commercial farms Feed Breeding Commercial farms
Feed Breeding
Commercial Farms PT Japfa Tbk

The poultry business (Feed, Breeding and Commercial Farms) represents the majority of the Companys
revenue and profits
Revenue trend was mainly impacted by the weakening of Rupiah and lower volumes in FY2015
Profitability in FY2014 to FY2015 was affected by the poultry market downturn from 3Q2014 to 2Q2015
Nonetheless, our Feed business continues to be the stable pillar of our profitability
Our ability to pass on raw material costs increases in our Feed selling prices is reflected in our stable Feed
operating margins, even during the periods of Rupiah volatility and the poultry market downturn

Note: The revenue figures for the poultry operational units shown above include inter-segment sales.
11
4 Japfa Ltd: A Leading Pan-Asian Industrialized Agri-Food Company

WHAT WE DO WHERE WE ARE WHY WE DO IT

We produce quality We employ over 3 billion people living
protein staples, dairy, 32,000 people across in our target markets
and packaged food that Singapore, Indonesia, More than 40% of the
nourish millions of Vietnam, Myanmar, worlds total
people India and China population

A leading pan-Asian, industrialised agri-food company dedicated to

feeding emerging Asia with essential proteins

12
 4 Japfa Ltd: A Leading Pan-Asian Industrialized Agri-Food Company

Leading upstream regional market positions

Milk Yield1 China 36 kg/day #1

Poultry Feed Production Capacity2 Indonesia 24% #2

DOC Production2 Indonesia 29% #2

DOC Production3 Vietnam 20% #3

Poultry Feed Production Capacity3 Myanmar 31% #2

DOC Production Capacity3 Myanmar 21% #2

Leading downstream consumers brands that are key drivers for future growth
Dairy Frozen Consumer Food4 Ambient Temperature Consumer Food4

#1 #2 #3
Others
Heinz ABC
15% PT CP Others
16%
Indonesia 46%
Sierad
Produce 37% Maya Muncar
17% 16%

Canning
Foods
13%
31% 9%
Greenfields, #1 brand of Fresh
Pasteurized Milk in Indonesia5
1. Source: CY2015 and FY2015/FY2016 data from various 5. PT Austasia Food calculation and claim based on value and volume sales
public-listed dairy farming companies operating in China. data provided by Nielsen Scan Track Service for Pasteurized Milk category for
2. Source: Frost & Sullivan Analysis, 2015 data. the 12 months ending September 2016 for Indonesia market.(Copyright
2016, Nielsen).. 13
3. Source: Company estimates, 2016 data.
4. Source: Frost & Sullivan Analysis, 2013 data.
 5 Experienced and tenured management team
Proven track record of guiding the Company through various cycles
Board of Commissioners

Syamsir Siregar Hendrick Kolonas Jaka Prasetya Retno Astuti Ignatius Herry Achmad Syaifudin
President Vice President Commissioner Wibisono Wibowo Haq
Commissioner Commissioner (KKRs Nominee) Independent Independent Independent
Commissioner Commissioner Commissioner
Year of agri Year of agri Year of finance
experience: 12 experience: 21 experience: 15 Year of agri Year of agri Year of agri
experience: 16 experience: 18 experience: 25
Board of Directors
Handojo Santosa Bambang Koesbyanto Tan Yong Nang Rachmat Indrajaya
President Budi Hendarto Setyadharma Director Independent
Director Vice President Director Director
Director
Year of agri Year of agri Year of agri Year of agri Year of agri
experience: 30 experience: 38 experience: 28 experience: 9 experience: 9

Company Established poultry Regional expansion initiative started with Merger with PT Multibreeder, a 73%
1971

1982

2003

2012
established as PT breeding operations establishment of new feedmill owned subsidiary to bring together the
Java Pelletizing to complement feed PT Japfa Tbks first Rupiah Bond groups poultry feed and breeding
2007

Factory Ltd business issuance which raised Rp500 billion operations

Issued IDR1.5 trillion Japfa Bond I
Establishment of new protein line
2008

Poultry PT Japfa Tbk PT Japfa Tbks first USD Bond

2013
1975

1989

through acquisition of a beef feed

feed listed on issuance which raised $225 million
lotter
business Jakarta and Received capital injection of New 2017

2017
2016
started Surabaya Acquired Vaksindo Satwa Nusantara, US$150mln
Rp702 billion from KKR
production Stock an animal vaccine manufacturer through PMTHMETD USD Bond to
Exchanges be used for the
Establishment of a IDR 3.0
Merger with PT Multi Agro redemption of
2009

trillion Re-tap Bond the 2013 USD

Persada (producer and
Programme, which allows Bond
distributor of feed)
the company to tap the IDR
bond market over two years

Timeline of Japfa Comfeed: Over 40 years of best-in-class poultry production

14
3. KKRs Investment in the Company

15
KKRs Investment in the Company
KKR Overview
Leading global investment firm with US$130bn of assets
under management across a wide range of asset classes
including private equity, special situations etc.
Offers suite of value-added capabilities to portfolio
companies to drive long-term sustainable value creation
Deep agricultural sector expertise in Asia, having
invested behind several companies which focus on high
quality food produce:
Asia Dairy
KKRs Value Add and Progress to Date
1 Balance Sheet Optimization: Leverage KKRs in-house
capital markets expertise to determine optimal capital
solution; KKR to be actively involved in ongoing
refinancing discussions
2 Enhance Liquidity: Institutionalize shareholder base and
to increase and improve research coverage through
proactive communication
3 Operational Improvements: Leverage KKRs operational
experience in the sector to drive improvements and to
explore ways to import lessons learned from KKRs
poultry investment in China, Fujian Sunner
Transaction Overview
KKR acquired ~12% stake in the Company through a
combination of primary and secondary share purchase;
shares purchased are subject to a one-year lock-up
Primary proceeds from KKRs investment was used to
strengthen the Companys balance sheet through
deleveraging
Jaka Prasetya, Managing Director at KKR, has been
appointed to join the Board of Commissioners
Successful refinancing of IDR and USD bonds
Improved engagement with credit rating agencies,
research analysts and institutional investors
Increased institutional interest in the Company following
KKRs investment
16
4. Financial and Operational Highlights

17
 PT Japfa Tbk Financial Performance

Revenue Operating Profit EBITDA PAT

IDR Billion IDR Billion IDR Billion IDR Billion

1Q2017 6,625 270 435 135

-31.6% YoY -19.0% YoY -56.0% YoY
+3.0% YoY
537 307
1Q2016 6,434 395

1Q2017 revenue increased but profitability declined due to lower ASP of Broilers and high G&A expenses
In Indonesia, a weaker-than-expected growth in poultry demand caused an oversupply in broiler in 1Q2017. This has resulted in a
lower price environment for broiler in 1Q2017.
ASP for broiler dropped below production cost, resulting in a loss recorded by the commercial farming business.
Feed remained the stable pillar of profitability with 9% growth in sales volume. Although operating margin was affected by higher
raw material costs, it remained at a healthy level.
Breeding recorded 14% growth in sales volume and 4% increase in ASP.
Looking ahead, Ramadan in 2Q2017 should drive demand for poultry and a recovery of broiler ASPs is expected.
The Ministry of Agriculture has started to effect its new decree of culling unhatched broiler DOC eggs nationwide, which is likely
to improve broiler prices for the rest of the year.

18
 PT Japfa Tbk Stable rolling operating profit

PT Japfa Tbk is as an agri-food business will always be subject to cyclicality which directly impacts its revenue and
profitability. Cyclicality is dependent on a variety of external factors which are beyond the Companys control,
including the seasonality of harvest and festivals, as well as macroeconomic factors that affect purchasing power
and government policies.

Feed remains as a stable pillar of profitability.

On a rolling basis, the operating profit has been fairly stable over last year.

Operating profit (IDR Billion)

3,213
2,921 2,796
Headwinds in Indonesia 2,776
(Sep14 to Jun15)
2,013
1,728
1,244 1,301
885

Ending Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17
Sluggish growth in Asian economies

Three months ended Rolling12 months ended

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Proven financial track record
Net Revenues Operating Profit EBITDA Net Profit
(IDR Billion) (IDR Billion) (IDR Billion) (IDR Billion)

6,625

6,434

537 435
395 307
270 135

1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017

Total Assets Net Debt/Equity CAPEX Total Debt

(IDR Billion) (IDR Billion) (IDR Billion)
21,034

17,425
91.5%

6,915 7,241
42.0%

219
106

1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017

Note: Based on Companys 1Q2017 Financial Results

20
PT Japfa Tbk
New 2017 USD Bond & Early Redemption of 2013 USD Bond
New 2017 US$150 million USD Bond

PT Japfa Tbk successfully issued the US$150 million 5-Year bond in March 2017.

Coupon is 5.50% p.a. due March 2022 and Reg S issue.

Purpose: Early partial redemption of the outstanding 2013 USD bond due in May 2018.

P&I are hedged for the full duration of the bond up to the all time high of USD/IDR exchange rate.

Early redemption of 2013 US$225 million USD Bond

PT Japfa Tbk bought back US$30.5 million bond that have been cancelled. Post cancellation,
US$194.5 million 2013 USD bond remains outstanding.

1st Redemption scheduled on 2 May 2017 to redeem US$150 million at the redemption price of
101.5%, funded by the new 2017 USD bond.

Following the 2 May 2017 redemption, the remaining US$44.5 million outstanding bond to be
redeemed with the proceeds from the Second Tap of the new IDR bond.

21
PT Japfa Tbk - IDR 3 trillion Re-tap Bond Programme

PT Japfa Tbk established a IDR 3.0 trillion Re-tap Bond Programme, which allows the company to tap the
IDR bond market over two years.

Amount Pricing

1st Tap I. 3-Year : IDR 0.85 trillion due Dec 2019 I. 3-Year: Coupon 9.25% p.a.
(Launched in Nov 2016)
II. 5-Year: IDR 0.15 trillion due Dec 2021 II. 5-Year: Coupon 9.75% p.a.

Total: IDR 1.0 trillion

2nd Tap 5-Year : IDR 1.0 trillion due April 2022 5-Year: Coupon 9.60% p.a.
(Launched in Mar 2017)

22
Capex FY2015 1Q2017

(IDR Billion)

787
712

219

FY2015 FY2016 1Q2017

23
Thank You

24