Indofood 

I- Compagny profile

a. History :

The humble plant embodies many of the qualities that define Indofood's success. By
embracing change and persevering under difficult circumstances, Indofood has continued to
thrive and grow - from a domestic operation to a major FMCG player with a thriving
international presence. Its desire to constantly innovate and create value for its stakeholders
fuels its passion for continuous improvement and growth amidst challenges.

Indofood is a Total Food Solutions company that operates at all stages of food
manufacturing, from raw material production and processing to consumer products in the
market. It has a reputation for being a well-established company and a leading player in each
category of business in which it operates. In its business operations, Indofood capitalises on
economies of scale and a resilient business model with four complementary strategic
business groups, namely:
- Branded Consumer Products (CBP)
Backed by the strength of its product brands, the CBP Group produces a diverse range of
branded consumer products, including noodles, dairy products, snacks, food seasonings,
nutritional and specialty foods, and beverages.

- Bogasari
The Bogasari Group is primarily a producer of wheat flour and pasta, whose commercial
operations are supported by its own shipping and packaging units.

- Agribusiness
The main activities of the Agribusiness Group range from research and development, seed
selection, cultivation and milling of oil palms, to the production and marketing of branded
cooking oils, margarine and shortening. The group also grows and processes sugarcane,
rubber and other crops.

- Distribution
With the most extensive distribution network in Indonesia, the Distribution Group
distributes the majority of consumer products produced by Indofood and its subsidiaries, as
well as by third parties, to the market.

 Brief history of Indofood

- 1990 :
PT Indofood Sukses Makmur Tbk ("Indofood" or the "Company"), which was incorporated as
PT Panganjaya Intikusuma in 1990, owns various businesses that have been operational
since the early 1980s.

Incorporated as PT Panganjaya Intikusuma.

Entered the snacks business.
 - 1994 :
Renamed PT Indofood Sukses Makmur.
Listed on the Indonesian Stock Exchange (IDX).

- 1995 :
Start of backward integration with the acquisition of the Bogasari flour mill.

- 1997 :
Expansion of commercial integration through the acquisition of a group of companies active
in plantations, food processing and distribution.

- 2005 :
Entry into the shipping sector through the acquisition of PT Pelayaran Tahta Bahtera.

- 2007 :
Listing of the agribusiness group, Indofood Agri Resources Ltd (IndoAgri), on the Singapore
Exchange (SGX).

The agribusiness group expands its plantations by acquiring PT PP London Sumatra Indonesia
Tbk (Lonsum),
a plantation company listed on the IDX.

- 2008 :
Agribusiness Group ventures into the sugar business by acquiring PT Lajuperdana Indah.

CBP Group enters the dairy sector by acquiring PT Indolakto (Indolakto), one of Indonesia's
leading dairy producers.

- 2010 :
CBP Group, PT Indofood CBP Sukses Makmur Tbk (ICBP), is listed on the IDX market.

- 2011 :
Listing of PT Salim Ivomas Pratama Tbk - (SIMP), a subsidiary of the Agribusiness Group, on
the IDX.
Agribusiness Group, on the IDX.

- 2013 :
CBP Group enters the beverage business.

The agribusiness group expands its sugar activities in Brazil and the Philippines through the
acquisition of stakes in Companhia Mineira de Açúcar e Álcool Participações (CMAA) and
Roxas Holdings Inc (Roxas).

- 2014 :
CBP Group expanded its beverage business by entering the packaged water sector, with the
acquisition of packaged water assets, including the Club brand.
 - 2018 :
CBP Group acquires full ownership of beverage and culinary subsidiaries, in addition to
expanding product distribution in the paper nappy business.

- 2020 :
CBP Group expands its instant noodle business by acquiring Pinehill Company Limited (PCL),
an instant noodle producer with operations in Africa, the Middle East and Southeast Europe.

- 2021 :
CBP Group acquires full ownership of the snack food subsidiary.
b. Organizational structure 
 c. Business development 

According to the articles of association, the company's business activities include industry,
trade, agriculture, livestock, water management, research, training and education,
construction, real estate, warehousing, food and beverage accommodation, services and
investment holding. The business activities carried out by the company include, among
others, the flour milling industry, which is itself integrated with the company's branded
consumer products subsidiary, the food processing industry, which includes oil palm
plantations and related processing plants, as well as other types of plantations and
processing operations, and distribution.
II- Financial report analysis
 a. Horizontal and vertical analysis

i. Net Sales
The total sales value of the distribution group increased by 10% to Rp 5.02 trillion in 2021
from Rp 4.56 trillion in 2020, due to increased sales of Indofood Group and third party
products.
ii. Gross Profit and Income from operation (EBIT)

Total operating expenses increased due to higher selling, distribution and general and
administrative expenses, as well as higher depreciation and amortisation of fixed assets.
Despite the increase in total operating expenses, EBIT increased by 31% to Rp 16.88 trillion
in 2021 from Rp 12.89 trillion in 2020 and EBIT margin increased to 17.0% from 15.8% in
2020 due to improved operating results.

iii. Income for the year

Income for the year was Rp 11.20 trillion, an increase of 28% from Rp 8.75 trillion in 2020.
After taking into account non-controlling interests, income for the year attributable to equity
holders of the parent entity increased by 18% to Rp 7.64 trillion from Rp 6.46 trillion in 2020.
Excluding non-recurring items and foreign exchange difference, core profit increased by 35%
to Rp 8.05 trillion in 2021 from Rp 5.96 trillion in 2020.

iv. Other comprehensive income and total comprehensive income for the
year

The total overall result for 2021 is Rp 12.13 trillion, an increase of 31% compared to Rp 9.24
trillion in the previous year.
 v. Total assets

The total assets of the Company as of December 31, 2021 amounted to Rp179.36 trillion, an
increase of 10% from Rp163.14 trillion as of December 31, 2020. These are total current
assets and total long-term assets of Rp54.18 trillion and Rp125.17 trillion respectively,
compared to Rp38.42 trillion and Rp124.72 trillion at the end of 2020. The increase in
The increase in total current assets is mainly due to the increase in cash and cash
equivalents, while the increase in total non-current assets is mainly attributed to an increase
in fixed assets in relation to capacity expansion.

vi. Total liabilities

The company recorded total liabilities as at 31 December 2021 of Rp92.72 trillion, an

increase of 10% from Rp84.00 trillion as at 31 December 2020. The total liabilities at the end
of 2021 consisted of current liabilities of Rp40.40 trillion and long-term liabilities of Rp52.32
trillion, compared to Rp27.98 trillion in 2020.
The total long-term liabilities will be Rp27.98 trillion and Rp56.02 trillion at the end of 2020
respectively. The increase in total current liabilities is mainly due to the retention amount
related to the acquisition of PCL due in April 2022, which was recorded as a non-current
liability as at 31 December 2020.

vii. Total equity

As at 31 December 2021, total equity amounted to Rp86.63 trillion compared to Rp79.14

trillion as at 31 December 2020, mainly due to the increase in non-controlling interests and
profits generated in 2021, net of dividend payments.

viii. Solvency

The company's financial position remained sound and manageable, although the total
funded debt increased to Rp 61.78 trillion from Rp 53.29 trillion at the end of 2020, due to
the issuance of ICBP global bonds to repay the syndicated loan and the amount reserved for
retention payable in connection with the PCL acquisition.
The gross debt to equity and net debt to equity ratios are 0.71 times and 0.37 times in 2021
respectively, compared to 0.67 times and 0.45 times in 2020. The total liabilities to total
equity ratio was 1.07 times, compared to 1.06 times in 2020, while the interest coverage
ratio was 7.3 times in 2021, compared to 8.8 times in 2020.

ix. Statement of cash flows

The company recorded net cash flow from operating activities of Rp14.69 trillion in 2021, an
increase from Rp13.86 trillion last year, mainly due to improvements in operating
performance.
The net cash flow used in investing activities was Rp 6.49 trillion in 2021, mainly for capital
expenditures and additional investments, while we recorded a cash flow used in investing
activities of Rp 37.64 trillion in 2020 due to the acquisition of PCL.
The net cash flow provided by financing activities in 2021 was Rp 3.85 trillion, lower than Rp
27.29 trillion in the previous year, mainly due to the decrease in the additional loan.