IMPORTANT NOTICE

NOT FOR DISTRIBUTION TO ANY PERSON OR ADDRESS IN THE UNITED STATES (UNLESSPURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OFTHE U.S. SECURITIES ACT OF 1933, AS AMENDED) OR INDONESIA

IMPORTANT: This electronic transmission is intended for the named recipient(s) only. If you are not anintended recipient, please delete this electronic transmission from your system immediately. You must readthe following disclaimer before continuing. The following disclaimer applies to the attached offering circulardated 24 November 2015 (the “Offering Circular”). You are therefore advised to read this disclaimer carefullybefore reading, accessing or making any other use of the attached. In accessing the attached, you agree to bebound by the following terms and conditions, including any modifications to them from time to time, each timeyou receive any information from us as a result of such access.

NOTHING IN THIS ELECTRONIC TRANSMISSION CONSTITUTES AN OFFER OF SECURITIES FORSALE IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO DO SO.

Confirmation of Your Representation: You have accessed the attached document on the basis that you haveconfirmed your representation to each of Deutsche Bank AG, Hong Kong Branch and Credit Suisse (Singapore)Limited (the “Joint International Selling Agents”) that:

(1) you are an institutional investor and you and any account you represent are (x) located outside the UnitedStates within the meaning of Regulation S under the U.S. Securities Act of 1933, as amended (the “U.S.Securities Act”) or (y) you are a dealer or other professional fiduciary holding a discretionary account orsimilar account (other than an estate or trust) for the benefit and account of a person who is not, and eachperson on whose behalf you are viewing this transmission is not, a U.S. person as defined in Regulation Sunder the U.S. Securities Act; AND

(2) you consent to delivery of the attached Offering Circular and any amendments or supplements thereto byelectronic transmission.

The attached document has been made available to you in electronic form. You are reminded that documentstransmitted via this medium may be altered or changed during the process of transmission and consequently noneof (i) PT Kino Indonesia Tbk (the “Company”), (ii) PT Kino Investindo (the “Selling Shareholder”), (iii) theJoint International Selling Agents, and (iv) any of their respective employees, representatives or affiliates acceptsany liability or responsibility whatsoever in respect of any discrepancies between the document distributed to youin electronic format and the hard copy version or any difference between the Offering Circular distributed to youin electronic format and the hard copy version available on request from the Joint International Selling Agents.Anyone wishing to acquire securities should read the Offering Circular before deciding whether to acquire thesecurities. You are reminded that the attached Offering Circular has been delivered to you on the basis that youare a person into whose possession the Offering Circular may be lawfully delivered in accordance with the lawsof the jurisdiction in which you are located and you may not nor are you authorised to deliver or forward thisdocument, electronically or otherwise, to any other person. If you have gained access to this transmission contraryto the foregoing restrictions, you will be unable to purchase any of the securities described herein.

NO ACTION HAS BEEN TAKEN OR WILL BE TAKEN THAT WOULD PERMIT A PUBLIC OFFERINGOF THE SHARES OF THE COMPANY TO OCCUR IN ANY JURISDICTION OTHER THAN INDONESIA,OR THE POSSESSION, CIRCULATION OR DISTRIBUTION OF THIS OFFERING CIRCULAR OR ANYOTHER MATERIAL RELATING TO THE COMPANY OR THE SHARES OF THE COMPANY IN ANYJURISDICTION WHERE ACTION FOR SUCH PURPOSE IS REQUIRED. NOTHING IN THISELECTRONIC TRANSMISSION CONSTITUTES AN OFFER OF SECURITIES FOR SALE IN THEUNITED STATES OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DO SO. THESECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE U.S. SECURITIESACT, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR OTHERJURISDICTION (OTHER THAN INDONESIA) AND MAY NOT BE OFFERED OR SOLD WITHIN THEUNITED STATES EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOTSUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT AND ANYAPPLICABLE STATE OR LOCAL SECURITIES LAWS.

Except with respect to eligible investors in jurisdictions where such offer is permitted by law, nothing in thiselectronic transmission constitutes an offer or an invitation by or on behalf of either the Company, the SellingShareholder, Deutsche Bank AG, Hong Kong Branch or Credit Suisse (Singapore) Limited to subscribe for orpurchase any of the securities described herein, and access has been limited so that it shall not constitute directedselling efforts (within the meaning of Regulation S under the U.S. Securities Act) in the United States orelsewhere. If a jurisdiction requires that the offering be made by a licenced broker or dealer and Deutsche BankAG, Hong Kong Branch and Credit Suisse (Singapore) Limited, or any of their affiliates is a licenced broker ordealer in that jurisdiction, the offering shall be deemed to be made by Deutsche Bank AG, Hong Kong Branchand Credit Suisse (Singapore) Limited, or their eligible affiliates (as the case may be) on behalf of the Companyand the Selling Shareholder in such jurisdiction.

You are responsible for protecting against viruses and other destructive items. Your use of this e-mail is at yourown risk and it is your responsibility to take precautions to ensure that it is free from viruses and other items ofa destructive nature.

YOU ARE NOT AUTHORISED AND YOU MAY NOT FORWARD OR DELIVER THE ATTACHEDOFFERING CIRCULAR, IN WHOLE OR IN PART AND ELECTRONICALLY OR OTHERWISE, TO ANYOTHER PERSON OR REPRODUCE SUCH OFFERING CIRCULAR IN ANY MANNER WHATSOEVER,AND, IN PARTICULAR, IT MAY NOT BE FORWARDED TO ANY U.S. ADDRESS (UNLESS PURSUANTTO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S.SECURITIES ACT) OR INDONESIAN ADDRESS. FAILURE TO COMPLY WITH THIS DIRECTIVE MAYRESULT IN A VIOLATION OF THE U.S. SECURITIES ACT OR THE APPLICABLE LAWS OF OTHERJURISDICTIONS.

If you have gained access to this transmission contrary to the foregoing restrictions, you will be unable topurchase any of the securities described herein.

PT KINO INDONESIA TBK(incorporated with limited liability in the Republic of Indonesia)

285,714,400 Offer Shares

This Offering Circular (“Offering Circular”) has been prepared by PT Kino Indonesia Tbk (the “Company”) in connection with the global offeringof 285,714,400 shares of the Company’s common shares of par value Rp100 each (the “Shares”) comprising of a primary offering of 228,571,500Shares (“Primary Shares”) by the Company and a private placement of 57,142,900 existing Shares (the “Placement Shares”) by PT KinoInvestindo (the “Selling Shareholder”). The Primary Shares are being offered (i) in connection with a public offer of Shares in the Republic ofIndonesia (the “Indonesian Offering”); and (ii) to eligible investors resident outside of the Republic of Indonesia (the “International Offering”and together with the Indonesian Offering, the “Primary Offering”). The Placement Shares are being offered only to eligible investors residentoutside of the Republic of Indonesia (the “Private Placement”). The Primary Offering and the Private Placement are collectively referred to asthe “Global Offering”. Shares being offered in the Global Offering are referred to as the “Offer Shares”.

This Offering Circular is being made available with respect to the International Offering and the Private Placement only. In connection with theInternational Offering, Deutsche Bank AG, Hong Kong Branch and Credit Suisse (Singapore) Limited and PT Indo Premier Securities as jointglobal coordinators and joint bookrunners (the “Joint Global Coordinators and Joint Bookrunners”), and Deutsche Bank AG, Hong Kong Branchand Credit Suisse (Singapore) Limited as joint international selling agents (the “Joint International Selling Agents”). The Joint InternationalSelling Agents are soliciting applications from eligible investors resident outside Indonesia on behalf of the Company and on behalf of PTDeutsche Securities Indonesia, PT Credit Suisse Securities Indonesia and PT Indo Premier Securities, as joint domestic lead underwriters (the“Joint Domestic Lead Underwriters”). The Indonesian Offering will be conducted by the Joint Domestic Lead Underwriters. In connection withthe Private Placement, the Joint International Selling Agents are soliciting applications from eligible investors resident outside Indonesia onbehalf of the Selling Shareholders.

We have applied to have the Primary Shares listed on the Indonesia Stock Exchange (“IDX”) upon completion of the Indonesian Offering. TheGlobal Offering is our initial public offering, and no public market currently exists for our Shares. The offering price may not reflect the marketprice of our Shares after the closing of the Global Offering.

This Offering Circular may only be distributed outside Indonesia to persons who are neither citizens of Indonesia (wherever located) norresidents of Indonesia. The Placement Shares may not be offered or sold in Indonesia or to Indonesian citizens wherever they aredomiciled, or to Indonesian residents, in a manner which constitutes a public offering under the laws and regulations of Indonesia.

Investing in our Shares involves a high degree of risk. Before purchasing any of our Shares, prospective purchasers should carefully read “RiskFactors” beginning on page 16 of this Offering Circular.

Offering Price: Rp3,800 per Share

THE INFORMATION CONTAINED IN THIS OFFERING CIRCULAR MAY BE SUPPLEMENTED OR AMENDED. A STATEMENT OFSHARE REGISTRATION HAS BEEN SUBMITTED TO THE INDONESIAN FINANCIAL SERVICES AUTHORITY (OTORITAS JASAKEUANGAN OR “OJK”) BUT WE HAVE YET TO RECEIVE AN EFFECTIVE STATEMENT FROM OJK. THIS OFFERING CIRCULARMAY ONLY BE USED IN CONNECTION WITH THE INITIAL OFFERING OF THE OFFER SHARES DESCRIBED HEREIN. THEOFFER SHARES MAY NOT BE SOLD PRIOR TO THE STATEMENT OF REGISTRATION AS SUBMITTED TO OJK BECOMINGEFFECTIVE. SUBSCRIPTION FOR ANY OF THE OFFER SHARES SHOULD BE EFFECTED ONLY AFTER THE POTENTIALINVESTOR HAS RECEIVED OR HAS HAD AN OPPORTUNITY TO REVIEW THIS OFFERING CIRCULAR.

The Joint International Selling Agents expect to deliver the Primary Shares to purchasers on or about 10 December 2015. Our Shares willbegin trading on the IDX on the listing date, which is expected to be on or about 11 December 2015. The closing of the Private Placementis conditional on the closing of the Primary Offering and the listing of our Shares on the IDX. The Joint International Selling Agents expectto deliver the Placement Shares to purchasers on or about 11 December 2015.

The Offer Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. SecuritiesAct”) or the securities laws of any other jurisdiction other than Indonesia. The Offer Shares are being offered and sold only outside theUnited States in reliance on the exemption from registration provided by Regulation S under the U.S. Securities Act (“Regulation S”).

Joint Global Coordinators and Joint Bookrunners

Deutsche Bank AG, Hong Kong Branch Credit Suisse (Singapore) Limited PT Indo Premier Securities

Joint International Selling Agents

Deutsche Bank AG, Hong Kong Branch Credit Suisse (Singapore) Limited

Joint Domestic Lead Underwriters

PT Deutsche Securities Indonesia PT Credit Suisse Securities Indonesia PT Indo Premier Securities

Offering Circular dated 24 November 2015

TABLE OF CONTENTS

CONVENTIONS WHICH APPLY TO THIS OFFERING CIRCULAR . . . . . . . . . . . . . . . . . . . iii

INDUSTRY AND MARKET DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

FORWARD-LOOKING STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi

ENFORCEABILITY OF CIVIL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

SUMMARY OF THE OFFERING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

SUMMARY FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

EXCHANGE RATES AND EXCHANGE CONTROLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

DIVIDEND POLICY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

USE OF PROCEEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

CAPITALISATION AND INDEBTEDNESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

DILUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

SELECTED FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

RECENT DEVELOPMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

INDUSTRY OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

HISTORY, CORPORATE RESTRUCTURING AND GROUP STRUCTURE . . . . . . . . . . . . . . . 118

BUSINESS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

MATERIAL CONTRACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

REGULATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

PRINCIPAL SHAREHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184

RELATED-PARTY TRANSACTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

SHARE CAPITAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

INDONESIAN CAPITAL MARKETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197

TAXATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212

PLAN OF DISTRIBUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214

LEGAL MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227

INDEPENDENT AUDITORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228

SUMMARY OF CERTAIN PRINCIPAL DIFFERENCES BETWEEN INDONESIAN FASAND IFRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229

INDEX TO FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-1

— i —

The U.S. Securities and Exchange Commission and U.S. state securities regulators have not approved

of, disapproved of or recommended the Offer Shares, nor have any of the foregoing authorities passed

upon or endorsed the merits of the offering of the Offer Shares or the accuracy or adequacy of this

Offering Circular. Any representation to the contrary is a criminal offence in the United States and

may be a criminal offence in other jurisdictions. In addition, the Indonesian Capital Markets and

Financial Institutions Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan or

“BAPEPAM-LK”), which has now been subsumed into the Indonesian Financial Services Authority

(Otoritas Jasa Keuangan or “OJK”) does not declare its approval or disapproval of the Offer Shares,

nor does it declare the accuracy or adequacy of this Offering Circular. Any statement to the contrary

is a violation of Indonesian law. For the purposes of the Indonesian Offering, the formal offering

document is the Indonesian prospectus.

This Offering Circular is strictly confidential and has been prepared by us solely for use in connection

with the proposed International Offering and the proposed Private Placement. This Offering Circular

is personal to each offeree and does not constitute an offer to any person or to the public generally

to purchase, or otherwise acquire, the Offer Shares. Distribution of this Offering Circular to any

person other than the offeree and those persons, if any, retained to advise such offeree with respect

thereto is unauthorised and any disclosure of any of its contents without our prior written consent is

prohibited. Each prospective purchaser, by accepting delivery of this Offering Circular, agrees to the

foregoing and to make no photocopies of this Offering Circular and, if the offeree does not purchase

the Offer Shares or the International Offering and/or Private Placement is terminated, to return this

Offering Circular to the Joint International Selling Agents.

In making an investment decision, you must rely on your own examination of our Company and the

terms of the International Offering and/or Private Placement, including the merits and risks involved.

By receiving this Offering Circular, you acknowledge that (i) you have been afforded an opportunity

to request from us and to review, and have received, all information that you consider necessary to

verify the accuracy of, or to supplement, the information contained in this Offering Circular, (ii) you

have not relied on either of the Joint International Selling Agents or the Joint Domestic Lead

Underwriters or any person affiliated with either of the Joint International Selling Agents or the Joint

Domestic Lead Underwriters in connection with your investigation of the accuracy of any informationin this Offering Circular or your investment decision and (iii) no person has been authorised to giveany information or to make any representation concerning our Company, the Selling Shareholder orthe Offer Shares other than as contained in this Offering Circular and, if given or made, any such otherinformation or representation should not be relied upon as having been authorised by us, the SellingShareholder, the Joint International Selling Agents or the Joint Domestic Lead Underwriters.

No representation or warranty, express or implied, is made by the Joint International Selling Agentsor the Joint Domestic Lead Underwriters as to the accuracy or completeness of the informationcontained in this Offering Circular. Neither the delivery of this Offering Circular nor the offer of theOffer Shares shall, under any circumstances, constitute a representation or create any implication thatthere has been no change in our affairs since the date of this Offering Circular or that any informationcontained herein is correct as at any date subsequent to the date hereof.

None of us, the Selling Shareholder, the Joint International Selling Agents, the Joint Domestic LeadUnderwriters and any of our or their respective affiliates and representatives, is making anyrepresentation to any purchaser of the Offer Shares regarding the legality of an investment by suchpurchaser under applicable laws. In addition, you should not construe the contents of this OfferingCircular as legal, business or tax advice. You should be aware that you may be required to bear thefinancial risks of an investment in the Offer Shares for an indefinite period of time. You should consultwith your own advisors as to the legal, tax, business, financial and related aspects of a purchase ofthe Offer Shares.

— ii —

By receiving this Offering Circular, prospective purchasers acknowledge that the consolidated

financial statements included in this Offering Circular have been prepared in accordance with

Indonesian Financial Accounting Standards (“Indonesian FAS” or “IFAS”), which differ in certain

respects from International Financial Reporting Standards (“IFRS”), and are subject to auditing

standards established by the Indonesian Institute of Certified Public Accountants.

This Offering Circular does not constitute an offer to sell, or an invitation by or on behalf of us or

the Selling Shareholder, the Joint International Selling Agents or the Joint Domestic Lead

Underwriters, or any affiliate or representative of any of us or them to purchase any of the Offer

Shares, and may not be used for the purpose of an offer to, or a solicitation by, anyone, in each case,

in any jurisdiction or in any circumstances in which such offer or solicitation is not authorised or is

unlawful. There are restrictions on the distribution of this Offering Circular and the making of

solicitations pursuant thereto in certain jurisdictions, further details of which are set out under “Plan

of Distribution”. Recipients of this Offering Circular are required to inform themselves about and

observe any applicable restrictions.

The Offer Shares have not been and will not be registered under the U.S. Securities Act or any U.S.

state securities laws and, unless so registered, may not be offered, sold or delivered within the United

States except pursuant to an exemption from, or in a transaction not subject to, the registration

requirements of the U.S. Securities Act and applicable U.S. state securities laws. In making its

purchase, each purchaser of the Offer Shares will be required to make or will be deemed to have made

certain acknowledgements, representations and agreements. For a description of these and certain

further restrictions on offers, sales and transfers of the Offer Shares and distribution of this Offering

Circular, see “Plan of Distribution”.

Each purchaser of the Offer Shares must comply with all applicable laws and regulations in force in

each jurisdiction in which it purchases, offers or sells such Shares or possesses or distributes this

Offering Circular and must obtain any consent, approval or permission required by it for the purchase,

offer or sale by it of such Shares under the laws and regulations in force in any jurisdictions to which

it is subject or in which it makes such purchases, offers or sales and neither we or the Selling

Shareholder, nor the Joint International Selling Agents or the Joint Domestic Lead Underwriters shall

have any responsibility therefor.

CONVENTIONS WHICH APPLY TO THIS OFFERING CIRCULAR

In this Offering Circular, unless otherwise specified or the context otherwise requires, all references

to “Indonesia” are references to the Republic of Indonesia. All references to the “Government” herein

are references to the Government of the Republic of Indonesia. All references to the “United States”

or “U.S.” herein are to the United States of America. All references to the “United Kingdom” herein

are to the United Kingdom of Great Britain and Northern Ireland. All references to “Rupiah” and “Rp”

herein are to the lawful currency of Indonesia and all references to “U.S. dollars” or “US$” herein are

to the lawful currency of the United States.

For convenience, certain Rupiah amounts in this Offering Circular have been translated into U.S.

dollar amounts, based on the middle exchange rate of Rp13,332 = US$1.00, being the average of

buying and selling rates of exchange for Rupiah against U.S. dollars quoted by Bank Indonesia on 30

June 2015. Such translations should not be construed as representations that the Rupiah or U.S. dollar

amounts referred to could have been, or could be, converted into Rupiah or U.S. dollars, as the case

may be, at that or any other rate or at all. See “Exchange Rates and Exchange Controls” for further

information regarding rates of exchange between Rupiah and U.S. dollars.

— iii —

In this Offering Circular, unless otherwise specified or the context otherwise requires, all referencesto:

• “we”, “us”, “our” and “Group” refer to PT Kino Indonesia Tbk and/or its subsidiaries(including DLS, Kino International, KCM, KCP and KVC), as the context requires;

• “Company” refers to PT Kino Indonesia Tbk, previously known as PT Kinocare EraKosmetindo, “PT KEK”;

• “DLS” refers to PT Dutalestari Sentratama, one of our subsidiaries;

• “Kino International” refers to Kino International Pte Ltd, one of our wholly ownedsubsidiaries;

• “KCM” refers to Kinocare (M) Sdn Bhd, one of our wholly owned subsidiaries;

• “KCP” refers to Kino Consumer Philippines, Inc., one of our substantially ownedsubsidiaries;

• “KVC” refers to Kino Vietnam Co. Ltd., one of our wholly owned subsidiaries;

• “PT KSI” refers to PT Kino Sentra Industrindo, previously one of our affiliates, which wasowned by Mr. Harry Sanusi as to 60% and Mr. Harris Sanusi as to 40% before it wasdissolved in November 2013;

• “PT MKI” refers to PT Morinaga Kino Indonesia, a joint venture among our Company, Mr.Harris Sanusi, the younger brother of Mr. Harry Sanusi, and Morinaga & Co, Ltd., aJapanese food manufacturing company, established in July 2013, which is owned by ourCompany as to 29.4%, by Mr. Harris Sanusi as to 19.6% and by Morinaga & Co, Ltd as to51%;

• “distribution centres” are to sales offices of DLS owned branches and third-party localdistributors;

• “direct and indirect outlets” are to retail and wholesale stores through which our personalcare, beverage, food and pharmaceutical products are sold to end consumers;

• “Controlling Shareholders” refers to our direct and indirect controlling shareholders, PTKino Investindo and Mr. Harry Sanusi;

• “Selling Shareholder” refers to PT Kino Investindo;

• “Shares” refers to Shares of par value Rp100 each in the capital of PT Kino Indonesia Tbk;and

• “Offer Shares” refers to the Shares which are the subject of the Global Offering.

In this Offering Circular, references to “2012”, “2013” and “2014” refer to the years ended 31December 2012, 31 December 2013 and 31 December 2014, respectively. Kosasih, Nurdiyaman,Tjahjo & Rekan (a member firm of Crowe Horwath International) has audited and rendered anunqualified audit opinion on our consolidated financial statements for the three years ended 31December 2014 and the six months ended 30 June 2015.

In this Offering Circular, unless otherwise stated, all operational data and financial data are presentedas at 30 June 2015.

— iv —

Unless otherwise stated, all financial information relating to our Company is stated on a consolidated

basis in accordance with Indonesian FAS. Any discrepancies in the tables or in the narrative summary

of financial information including with respect to our Company’s current and planned investments

included in this Offering Circular between the listed amounts and their totals are due to rounding. In

addition, unless we indicate otherwise, all percentage figures included in this Offering Circular are

rounded.

INDUSTRY AND MARKET DATA

This Offering Circular includes industry data and forecasts that we have obtained from industry

publications and surveys and internal company reports and surveys, as well as from industry data we

commissioned from Euromonitor International Limited and The Nielsen Company Indonesia,

respectively. The information that appears in the section headed “Industry Overview” in this Offering

Circular has been prepared by Euromonitor International Limited and The Nielsen Company

Indonesia. The information from Euromonitor International Limited reflects estimates of market

conditions based on publicly available sources and trade opinion surveys, and has been prepared

primarily as a market research tool. References to Euromonitor International Limited should not be

considered as opinions of Euromonitor International Limited as to the value of any security or the

advisability of investing in the Company. The information from The Nielsen Company Indonesia

reflects estimates of market conditions based on samples and has been prepared primarily as a

marketing research tool for consumer packaged goods manufacturers and others in the consumer goods

industry. This information should not be viewed, interpreted or relied upon as a basis for investments

and references to The Nielsen Company Indonesia should not be considered as its opinions or

endorsements as to the value of any security or the advisability of investing in the Company. Industry

publications and surveys and forecasts generally state that the information contained therein has been

obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or

completeness of the information. We, the Selling Shareholder, the Joint International Selling Agents

and the Joint Domestic Lead Underwriters have not independently verified any of the data from third

parties contained in this Offering Circular.

— v —

FORWARD-LOOKING STATEMENTS

This Offering Circular contains “forward-looking” statements that relate to future events, which are,

by their nature, subject to significant risks and uncertainties. All statements other than statements of

historical fact contained in this Offering Circular including, without limitation, those regarding our

future financial position and results of operations, strategy, plans, objectives, goals and targets, future

developments in the markets where we participate or are seeking to participate, and any statements

preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “will”,

“may”, “project”, “estimate”, “anticipate”, “predict”, “seek”, “should” or similar words or expressions

are forward-looking statements. The future events referred to in these forward-looking statements

involve known and unknown risks, uncertainties and other factors, some of which are beyond our

control, which may cause the actual results, performance or achievements, or industry results to be

materially different from any future results, performance or achievements expressed or implied by the

forward-looking statements. These forward-looking statements are based on numerous assumptions

regarding our present and future business strategies and the environment in which we will operate in

the future and are not a guarantee of future performance. Important factors that could cause the actual

results, performance or achievements to differ materially from those in the forward-looking statements

include, among others, the following:

(i) our ability to be and remain competitive;

(ii) the anticipated demand and selling prices for our products and the cost of capital

expenditures and investments;

(iii) the condition of and changes in the Indonesian, Asian or global economies and the social

and political situation in Indonesia;

(iv) our financial condition, business strategy, budgets and projected financial and operating

data as well as the plans and objectives of management for future operations;

(v) our relationship with our joint venture partners and licensors;

(vi) cost of raw materials;

(vii) changes in interest rates and the value of the Rupiah against the U.S. dollar and other

currencies;

(viii) changes in government regulations and licensing of our businesses in Indonesia; and

(ix) other risks, uncertainties and factors set forth under “Risk Factors.”

When relying on forward-looking statements, you should carefully consider the foregoing factors and

other uncertainties and events, especially in light of the political, economic, social and legal

environment in which we operate. Such forward-looking statements speak only as at the date on which

they are made. We do not undertake any obligation to update or revise any of them, whether as a result

of new information, future events or otherwise. We make no representation, warranty or prediction that

the results anticipated by such forward-looking statements will be achieved, and such forward-looking

statements represent, in each case, only one of many possible scenarios and should not be viewed as

the most likely or standard scenario. Accordingly, you should not place undue reliance on any

forward-looking statements.

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ENFORCEABILITY OF CIVIL LIABILITIES

We are a limited liability company incorporated under the laws of Republic of Indonesia. Substantially

all of our commissioners, directors and executive officers reside in Indonesia. Substantially all of our

assets and substantially all of the assets of the Indonesian-citizen/resident directors and executive

officers of our Company are located in Indonesia. As a result, it may be difficult for purchasers to

effect service of process upon such persons, or to enforce against our Company or any of them any

court judgments obtained in courts outside of Indonesia.

We have been advised by our Indonesian legal counsel, Hiswara Bunjamin & Tandjung, that judgments

of courts outside Indonesia are neither recognised nor enforceable in Indonesia. However, a foreign

court judgment may be admissible at trial as evidence with respect to the matter of law tried in the

non-Indonesian court and may be given such evidentiary weight as an Indonesian court, in its sole

discretion, deems appropriate under such circumstances. A claimant may be required to pursue claims

in Indonesian courts on the basis of Indonesian law. Re-examination of the underlying claim de novo

would be required before the Indonesian court. There can be no assurance that the claims or remedies

available under Indonesian law will be the same, or as extensive, as those available in other

jurisdictions.

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SUMMARY

This summary highlights information contained elsewhere in this Offering Circular. This summary isqualified in its entirety by more detailed information and the consolidated financial statements,including the notes thereto, appearing elsewhere in this Offering Circular. For a discussion of certainrisks that should be considered in evaluating an investment in the Offer Shares, see “Risk Factors”.Investors are advised to read this entire Offering Circular carefully, including the consolidatedfinancial statements and related notes contained herein.

Overview

We are one of the leading fast-moving consumer goods (“FMCG”) businesses in Indonesia, with adiverse portfolio of leading personal care brands complemented by a growing portfolio of food andbeverage brands. We have established leading positions in the personal care segment in Indonesia witha number of well-known and organically developed brands targeted primarily at consumers in themiddle to higher income brackets. According to The Nielsen Company Indonesia, we were the largestproducer of hair vitamin, intimate hygiene and 2-in-1 cleansing products in Indonesia in terms of totalretail sales value in the year ended 31 December 2014 with our “Ellips” hair vitamin, “Resik-V”intimate hygiene and “Ovale” 2-in-1 cleanser commanding market shares of 77.0%, 49.2% and 50.2%,respectively. We also sell a broad range of beverage and food products that appeal to middle to higherincome and lower and middle income Indonesian consumers respectively. In July 2013, theestablishment of PT MKI, a joint venture among our Company, Mr. Harris Sanusi and Morinaga & Co.Ltd, a Japanese food manufacturer, extended our target market of food products to higher incomeIndonesian consumers. We place great emphasis on the innovation and development of our productsand seek to differentiate ourselves from large FMCG competitors via our product range, brand equityin selective market segments and extensive nationwide distribution network. We believe part of oursuccess is attributable to our ability to identify segments of the Indonesian market with strong growthpotential based on our close-to-ground knowledge of this market and our end-to-end capabilities, fromproduct development to manufacturing and distribution.

Our business divisions comprise the following:

Personal Care: Our personal care division, which commenced operations in 1999, accounted for51.1%, 51.7%, 41.6% and 50.2% of our sales in 2012, 2013, 2014 and the six months ended 30 June2015 respectively. We offer a wide range of personal care products including hair care, bath andshower, skin care, and baby and child-specific products under various brands to cater to differentmarket segments. Our major personal care brands include “Ellips”, “Resik-V” and “Ovale”. Goingforward we will leverage our local knowledge, culture of innovation and end-to-end capabilities totarget additional personal care segments.

Beverages: Our beverages division, which commenced operations in 2004, accounted for 44.4%,39.9%, 35.0% and 36.2% of our sales in 2012, 2013, 2014 and the six months ended 30 June 2015respectively. We produce a variety of beverages including remedy drinks, energy drinks, herbal drinksand juice drinks under various brands. Our major beverage brands include “Cap Kaki Tiga”, “Panda”and “Panther”.

Food: Our food division, which commenced operations in 1997, accounted for 4.3%, 7.8%, 23.2% and13.4% of our sales in 2012, 2013, 2014 and the six months ended 30 June 2015 respectively. Prior toNovember 2013, we were one of the distributors of food products manufactured by our affiliate, PTKSI, through DLS. In October 2013, DLS became the sole distributor of PT MKI, a joint ventureamong our Company, Mr. Harris Sanusi and Morinaga & Co, Ltd. established in July 2013, and intowhich substantially all of PT KSI’s food business was transferred. All of the food products PT MKImanufactures are exclusively distributed and sold to consumers via DLS. The food brands we

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distribute are currently divided into the Kino Candy, Snackit and Segar Sari ranges, comprising avariety of confectioneries, snacks and powdered drinks. Going forward we expect our range of foodproducts to expand and target more premium consumers as we leverage the technology, expertise andbrands of our joint venture partner.

Pharmaceuticals: Our pharmaceutical division, accounted for 0.1%, 0.6%, 0.2% and 0.1% of our salesin 2012, 2013, 2014 and the six months ended 30 June 2015. Our pharmaceutical products includethree types of balms and a herbal cough remedy under the “Cap Kaki Tiga” brand.

We have established an extensive nationwide distribution and sales network through our distributionarm, DLS, which has allowed us to grow rapidly and penetrate the large Indonesian consumer goodsmarket. DLS is the sole distributor of our products and the food products of PT MKI through its ownedbranches and third-party local distributors. DLS as our first group company started its distributionbusiness in 1991, and provides us a strong heritage and expertise in distribution. As at 30 June 2015,DLS had 29 branches and 124 third-party local distributors with whom DLS has entered into 189distribution agreements (totalling 211 distribution centres), which provided us access to a nationwidenetwork of 941,106 direct and indirect outlets spread across 35 provinces in Indonesia. Our ownedbranches are primarily focused on the Java and Bali regions where we believe consumers generallyhave greater spending power as these regions account for the majority of the population and spendingin Indonesia. In order to penetrate other regions in Indonesia, such as Sumatra, Kalimantan andSulawesi in a cost effective manner, we distribute our products in these regions through third-partylocal distributors, which gives us access to close-to-ground knowledge of regional business conditionsand practices. Our personal care products are also exported to the Philippines through KCP and its 27third-party local distributors, to Vietnam through KVC and its one local distributor, to Malaysiathrough KCM and its one local distributor, and to other countries around the world. The map belowsets out our nationwide sales and distribution network in Indonesia as at 30 June 2015. While ourinternational sales are currently small, we expect these to increase over time.

Notes:

(1) DLS owned branches: 29 distribution centres; third-party local distributors: 211 distribution centres owned by 124third-party local distributors

(2) Total direct and indirect outlets: 941,106, including 201,076 direct outlets of DLS and 740,030 indirect outlets throughthird-party local distributors

We believe that our leading position in the personal care segment in Indonesia complemented by ourgrowing food and beverages businesses will enable us to take advantage of continued growthopportunities in the Indonesian FMCG market. From 2010 to 2014, Indonesia’s real GDP grew at aCAGR of 4.1%. The International Monetary Fund predicts that Indonesia’s real GDP will grow by aCAGR of 7.8% from 2015 to 2020. According to Euromonitor International, Indonesia’s middleincome population, defined as households with between US$7,501 and US$45,000 income per annum,

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has grown by a CAGR of 5.0% from 2010 to 2014 and the disposable income per capita has alsoincreased with a CAGR of 10.8% during the same period. The World Bank forecasted that the middleclass population will represent 80% of Indonesia’s total population by 2030, providing a strongfoundation for future consumption growth, particularly for discretionary products such as FMCG. Asa result of these trends, we believe consumer spending on our products will also increase.

We have four plants located in Cikande (Banten), Cidahu (West Java), Cikembar (West Java) andPandaan (East Java), and PT MKI has two plants located in Sayung (Central Java) and Terboyo(Central Java). The six plants have a total installed capacity of 237,476 kilolitres. We also operatetwelve warehouses, which are used as distribution centres, located in Kapuk, Tangerang (PondokAren), Serang, Depok, Bekasi, Bandung (Ciseureuh), Bandung (Margasuka), Semarang, Sidoarjo,Surabaya, Makassar and Denpasar, accounting for a total of 17,235 pallet positions as at 30 June 2015.

Our sales and net income have continuously increased in recent years. Our sales amounted toRp1,692,137 million, Rp2,267,314 million, Rp3,339,386 million and Rp1,746,627 million (US$131.0million) in the years ended 31 December 2012, 2013, 2014 and the six months ended 30 June 2015respectively. Our net income was Rp31,544 million, Rp51,155 million, Rp104,160 million andRp141,336 million (US$10.6 million) in the years ended 31 December 2012, 2013, 2014 and the sixmonths ended 30 June 2015 respectively.

Our Strengths

Our competitive strengths include the following:

Leading brand positions in multiple segments of Indonesia’s personal care sector complemented bygrowing food and beverage businesses

As one of the leading FMCG businesses in Indonesia with a diverse portfolio of strong brands andwidespread consumer loyalty, we command leading Indonesian market positions in a variety ofpersonal care product segments. Based on data from The Nielsen Company Indonesia, in terms of totalretail sales value in the year ended 31 December 2014, our in-house developed brands such as“Ellips”, “Resik-V”, “Eskulin”, “Ovale”, and three baby and child-specific brands (“Eskulin Kids”,“B&B Kids” and “Master Kids”) were the market leaders in Indonesia for: hair vitamin, with a 80.2%market share; intimate hygiene, with a 49.0% market share; splash cologne, with a 29.1% marketshare; 2-in-1 cleanser, with a 50.2% market share; and kids personal care, with a market share of40.0%.

Our ability to predict and fulfil consumer demands has enabled us to create a portfolio of recognisablepersonal care brands which benefit from strong nation-wide brand loyalty among consumers inIndonesia. We focus on high-growth segments of Indonesia’s personal care industry where we canleverage our innovations in product development and marketing to create leadership positions and helpgrow our product portfolio. We have continuously employed a strategy of exploring selective marketsegments which has resulted in a wide range of product offerings, catering to consumer demandsacross the spectrum. Our current focus categories include selective segments for hair care, skin careand baby and child-specific products targeting middle to higher income consumers, instead of moremainstream personal care products such as soap, shampoo and toothpaste as the market for theseproducts is more competitive and typically attracts lower margins. We may, however, in the future seekto enter into segments of such mainstream personal care products with a view to expand our productsportfolio. As at 30 June 2015, we had 534 personal care SKUs on the market and our leading personalcare brands accounted for 229 SKUs.

Our leading personal care business is complemented by a growing portfolio of food and beveragebrands. In July 2013, our Company and Mr. Harris Sanusi established a joint venture, PT MKI, withMorinaga & Co. Ltd, to produce a wide range of premium branded food products, which we believewill enable us to expand our target consumer market from lower to middle income Indonesianconsumers to also capture higher income consumers. As at 30 June 2015, we had 664 SKUs on the

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market, of which approximately 80.4% were personal care, 10.3% were food, 8.1% were beveragesand the remaining 1.2% were pharmaceutical products. Our presence across various product segmentsenhances brand familiarity and encourages the cross-selling of products due to the familiarity of, andloyalty to, the wider Kino brand.

Growing portfolio of food & beverage brands with access to premium brands via our joint venturewith Morinaga

We have a growing range of branded food and beverages products. We launched our first food productproduced by PT KSI, “Kino Candy”, in 1997 and have since distributed a wide range ofconfectioneries, snacks and powdered drinks targeting lower to middle income Indonesian consumers.In 2013, the establishment of PT MKI, a joint venture among our Company, Mr. Harris Sanusi andMorinaga & Co. Ltd, a Japanese food manufacturer, granted us access to premium brands covering awide range of food products which are quintessential to the Morinaga brand, such as Hi-Chew candies.This joint venture adds a new dimension to our food division with the addition of established premiumbranded food products that will help us extend our target market to higher income consumers inIndonesia. Our strategic joint venture with Morinaga & Co, Ltd has also strengthened our productdevelopment and marketing knowledge by providing us access to premium brands and more advancedtechnologies. This joint venture agreement also illustrates the strength of our business anddemonstrates the willingness of leading international FMCG companies to form long-term strategicrelationships with us.

Our beverages command strong positions in their respective segments. According to EuromonitorInternational, our Asian speciality drinks, which includes our “Cap Kaki Tiga” ready-to-drink remedydrink and our “Panda” herbal drink, achieved a 35.7% market share in the Asian speciality drinkssegment and a 46.2% market share of remedy drinks products, each in terms of total retail sales valuein the year ended 31 December 2014. The “Cap Kaki Tiga” brand is an important member of ourbeverage portfolio and we also sell pharmaceutical products, such as herbal cough remedies and arange of balms, under this brand. This product area represents a large opportunity for growth of ourbusiness. Our licensing arrangement with Wen Ken Drug Co (Pte) Ltd has provided us with a platformfor sharing technology and expertise, and assisted us in the development and expansion of our productofferings.

Pan Indonesia presence with an extensive and modern distribution network supplemented bythird-party distributors outside Java

We have a strong heritage of, and expertise in, distribution. We distribute our products throughoutIndonesia via our distribution subsidiary, DLS, which has expanded from opening its first branch in1991 into an established and efficient infrastructure platform consisting of 29 owned branches and 124third-party local distributors with whom DLS has entered into 189 distribution agreements (totalling211 distribution centres) as at 30 June 2015. This platform provides us with an extensive distributionreach across 35 provinces in Indonesia with a sales force of 1,803 as at 30 June 2015. We have adopteda strategy of establishing a meaningful presence in major cities in Java and Bali, which we consideras our core markets, by opening our owned branches. In other cities in Java and cities outside Java,we generally engage third-party local distributors. Our international network and distribution is alsogrowing through our subsidiaries KCP, KVC and KCM and relationships with internationaldistributors across Asia, Australia, the Middle East and Africa.

Our distribution network supplies our various well-established trade channels (general, modern andinstitutional) which provided us access to 941,106 direct and indirect outlets as at 30 June 2015.Through these channels we are able to leverage local capabilities to increase sales and maintaingrowth momentum. Currently, the general trade channel is the strongest and most important channelin our distribution network, contributing to approximately 65% of our sales in the six months ended30 June 2015. Our local capabilities play a key role in our relationships with direct and indirect outletsand we believe we have an advantage in this distribution channel versus our international competitorsdue to our close knowledge of local Indonesian business practices. The modern trade channel

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contributed to approximately 33% of our sales in the six months ended 30 June 2015. We intend to

grow our modern trade channel presence moving forward, as Indonesian consumers shift to shopping

at larger format retailers such as Carrefour and Lotte. The institutional trade channel contributed

approximately 2% of our sales in the six months ended 30 June 2015, and provides us with additional

avenues to increase the visibility of our products.

We use modern technologies to drive efficiency in inventory control throughout our distribution

network. We use SAP systems for real-time monitoring of critical business information such as new

orders, inventory, point-of-sale (POS) data to customers, delivery, and bill collection. We have also

partnered with reputable information technology providers, such as Hewlett Packard, Telkom

Indonesia, Qlikview and Nielsen Spaceman Professional to implement an integrated IT-based

approach to managing our business. These information management systems allow us to improve

operational efficiencies by maintaining close control over inventory and operating expenses. They also

enable us to adjust product offerings in line with market demand through automated order

replenishment, allowing us to ensure ‘just-in-time’ delivery of products to our customers.

We believe that our extensive distribution operation across the Indonesian archipelago is a key

competitive advantage for us, as the difficulty in establishing an efficient logistics network creates a

strong barrier to entry for smaller competitors and new entrants. In addition, we believe that our

geographically diversified distribution network, supported by a logistics infrastructure with short lead

times, enables us to distribute our products nationwide in a cost-effective manner.

Strong product development and manufacturing capabilities and proven track record of productinnovation

Our strong product development efforts have enabled us to expand the range and improve the qualityof our products over the years. We have dedicated “KINO-Vation” teams for each of our personal care,beverage and pharmaceutical divisions, and PT MKI also has a dedicated team for food products.These teams follow a highly structured innovation and product development process that typicallytakes 18 months to complete, from generating an idea to full commercialisation. Together these teamsconsisted of 99 experts (including those of PT MKI) as at 30 June 2015, including 29 chemists, 28pharmacists, 17 food technologists, 16 chemical engineers, seven food nutritionists and two biologists.These teams regularly collect market intelligence from our sales and marketing teams to develop newproduct lines in order to improve and expand product offerings. These teams also collaborate onproduct research with third parties such as the Pharmacy Department of Gadjah Mada University inIndonesia, the Lubrizol Lab in Singapore and the Seppic Lab in Shanghai.

These product development teams have demonstrated a strong track record of product innovation tomeet changing consumer trends, the evolution of technology and competition. In 2012, 2013, 2014 andthe first half of 2015, we launched 36, 29, 27 and 22 new SKUs of ten, eight, six and eight brandsrespectively, and we re-launched 45, 21, five and 33 SKUs of three, two, one and three brandsrespectively. We believe our product research and development capabilities have enabled us tosuccessfully achieve ongoing product improvement, continuously expand our product offerings anddiversify our product mix, as well as maintain our competitiveness in the FMCG industry in Indonesia.

Our products are manufactured across six plants (including two plants of PT MKI) with a totalinstalled capacity of 237,476 kilolitres. The plants utilise modern and technologically advancedequipment from leading Japanese and European machinery manufacturers, and have obtained a numberof certifications, including ISO 9001:2008 Quality Standard since 2005, Certified GoodManufacturing Practice (GMP) since 2005, halal certification since 2009. We believe that the standardof our production facilities ensures that our customers are provided with quality products inaccordance with best-in-class manufacturing practices.

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Experienced and entrepreneurial management team with a track record of delivering growth andprofitability

Our management team consists of experienced and qualified professionals, with previous workingexperience in leading international FMCG companies, particularly with respect to establishing,managing and operating consumer businesses. Our senior management team of five senior executiveshas been with us for a combined approximately 96 years and possesses extensive industry experiencein Indonesia. This team is led by our CEO and President Director, Mr. Harry Sanusi, who founded ourGroup by establishing our distribution arm, DLS, in 1991, and includes professionals who wereinstrumental in our growth from the introduction of first product, “Kino Candy”, in 1997, and in ourachieving leading market positions across various product segments.

We also benefit from an experienced and entrepreneurial management team which has, over the years,demonstrated the ability to successfully grow our business, develop brand recognition across multipleconsumer segments, grow and sustain a culture of innovation and excellence across our entireorganisation, and drive profitable growth. Led by this team, we have achieved a track record of stableand profitable growth, doubling our revenue and tripling our net income, between 2012 and 2014, byscaling up the business and driving profitability through economies of scale and operationalefficiencies. Our sales grew at a CAGR of 40.5% from Rp1,692,137 million in 2012 to Rp3,339,386million in 2014 and our net income grew at a CAGR of 81.7% from Rp31,544 million in 2012 toRp104,160 million in 2014.

We believe that the market experience and knowledge of our team and the business relationships theyhave developed with key partners, suppliers and customers will continue to benefit our future growthand development.

Business Strategies

Our key business strategies include the following:

Focus on expanding our product portfolio and further solidifying leading market positions

We will continue to promote a consumer-oriented culture focused on continuous product innovationand development. We believe this has provided us with a strong foundation and a first-moveradvantage in developing diverse product lines and will continue to be a key to maintaining andenhancing our long-term competitiveness. We will continue to develop new product categories andvariants and diversify product lines in response to consumer trends and our predictions of consumerdemands based on our deep market knowledge. Our experienced and integrated in-house productdevelopment team provides us with a competitive capability to efficiently develop and launch newproduct variants and categories and to expand our product offering range in each targeted consumersegment.

We will also selectively seek to increase our product offerings and capture market share across productsegments through inorganic growth, such as mergers and acquisitions or cooperation with internationalcompanies like Morinaga & Co, Ltd and Wen Ken Drug Co. (Pte) Ltd to obtain technology andexpertise and enter into new product areas. Our strategic joint venture with Morinaga & Co, Ltd hasalso strengthened our product development and marketing knowledge by providing us access topremium brands and more advanced technologies. Under the terms of the agreement, PT MKI may useMorinaga & Co., Ltd.’s “Hi-Chew” trademark and any of Morinaga & Co., Ltd.’s current or futurebrands or trademarks. PT MKI may also use and manufacture, sell, advertise or promote Morinaga &Co., Ltd.’s “Hi-Chew” brand products and “Bake” brand products, as well as any of Morinaga & Co.,Ltd.’s current or future products. We believe that entering into new product areas will allow us todiversify our product portfolio and position our brands as fulfilling the needs of the entire household.

We will continue to enhance our brand equity through integrated marketing activities, including“Above-the-Line” advertising through free-to-air television commercials, digital advertising, program

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sponsorships, print advertisements and out-of-home billboard advertising. We will continue to developour “In-Store” and “Out-of-Store” programs through displays and planograms, category management,brand ambassadors, in-store promotions, out-store brand activation and consumer engagement. Anintegral part of our marketing activities will be our focused consumer relationship programs with ourdifferent distribution channels.

Continue to expand our distribution and sales network within Indonesia

We intend to further expand our distribution and sales network in Indonesia by establishing moreowned branches and developing more third-party local distributors. Our owned branches currentlyfocus on operations in the larger cities in Java, and we plan to penetrate the markets in smaller citiesin Java by setting up more owned branches. We will also continue to expand beyond the Java regioninto cities which we believe are currently underserved and which contain a large and growing base ofmiddle-income consumers. We aim to develop more third-party local distributors in such areas toachieve a first-mover advantage into these regions. We believe that we have an advantage over largercompanies when venturing into underpenetrated regions as our management personnel have a stronginsight into local market conditions. Through increased cooperation with local distributors, as well asincreasing the number of owned branches, we aim to achieve access to 1.4 million direct and indirectoutlets by 2020. In addition, we aim to increase the sales contribution from owned branches fromapproximately 44% of our total sales as at 30 June 2015 to 60% by 2020. We believe that our increasedfocus on owned branches as the primary point of distribution will afford us greater control of theexpanded distribution process, thereby enhancing efficiency and reducing cost.

In addition, we also plan to strategically expand our overseas operations as we believe that ourbusiness model, which primarily focuses on selective, underserved middle market segments will affordus similar success in other ASEAN regions where consumer trends, demographics and economicgrowth are similar to Indonesia and therefore more familiar to us. In 2016, we plan to establish adistribution subsidiary in Thailand.

Improve cost efficiency and increase production capacity

We will continue our efforts to control costs by seeking to optimise operational efficiency andproductivity through negotiating better terms with suppliers, leveraging our scale, efficient utilisationof raw materials, reducing rejection rates, continuing cost discipline, and reducing general andadministrative expenses. We continually re-evaluate our processing parameters with a focus onreducing waste generated during production. We are also gradually increasing automation levels toenhance productivity, and continue to provide training for employees in order to increase theirtechnical skills. We have partly switched to more economical and efficient energy sources andcontinue to explore ways to increase our use of such energy sources.

We also plan to expand the production capacity of our existing plants through the construction ofadditional factories and warehousing facilities, purchasing additional machinery, and establishing newproduction lines. Many of the plants are already running at above 80% utilisation rates. We plan toexpand our production capacity as we increase production volumes and introduce new products. Weown the land around our existing plants at Cikande, Cidahu and Pandaan, which will allow us toexpand our production capacity quickly and cost effectively. We have also focused on purchasingmodern and technologically advanced manufacturing equipment from Europe and Japan in our recentexpansion and will continue to invest in technology to improve productivity and efficiency.

Corporate Information

Our principal executive offices and registered office are located at Jalan Cibolerang 203, Kav. 03,Bandung, West Java 40225. We also have a representative office located at Datascrip Building 9thFloor, Jl. Selaparang Blok B15, Kavling. 9, Kemayoran, Central Jakarta 10610. Our telephone numberat this address is +(62)(21) 654 5422. Our main website is www.kino.co.id. The information containedin our website does not form part of this Offering Circular.

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SUMMARY OF THE OFFERING

The following summary contains basic information about the Offer Shares and is not intended to be

complete. It does not contain all the information that may be important to prospective purchasers. For

a more complete understanding of the Offer Shares, please refer to the section entitled “Share

Capital—Common Shares” and “Indonesian Capital Markets” in this Offering Circular.

The Issuer PT Kino Indonesia Tbk

The Selling Shareholder PT Kino Investindo

Global Offering The Global Offering consists of a concurrent PrimaryOffering and Private Placement of 285,714,400 Offer Shares.The closing of the International Offering and the PrivatePlacement is conditional upon the closing of the IndonesianOffering. For more information, see “Plan of Distribution”.

Indonesian Offering The Indonesian Offering is being made in Indonesia throughthe Joint Domestic Lead Underwriters by way of a publicoffering, pursuant to Indonesian capital market laws.

International Offering Concurrently with the Indonesian Offering, Offer Shares arebeing offered to eligible investors resident outside Indonesia.The International Offering is being made outside the UnitedStates in reliance on the exemption from registration underRegulation S. The closing of the International Offering isconditional upon the closing of the Indonesian Offering. Formore information, see “Plan of Distribution”.

Private Placement Concurrently with the Indonesian Offering and theInternational Offering, Offer Shares are being offered toeligible investors resident outside Indonesia by PT KinoInvestindo by way of a private placement in reliance on theexemption from registration provided by Regulation S. ThePrivate Placement will be carried out in conjunction with thebookbuilding process of the Primary Offering and thePlacement Shares (if any) are expected to be delivered topurchasers on or about 11 December 2015. The closing of thePrivate Placement is conditional upon the closing of thePrimary Offering and the listing of our Shares on the IDX. Formore information, see “Plan of Distribution”.

Offering Price Rp3,800 per Offer Share.

Offer Shares 228,571,500 Primary Shares and 57,142,900 PlacementShares of par value Rp100, the subject of the Global Offering.

Listing and trading We have applied to have our Shares (including the OfferShares) approved for listing and quotation on the IDX. Iflisting approval is granted, trading in the Offer Shares on theIDX would be expected to commence on or about 11December 2015.

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Lock-up Our Company has agreed that, without the prior writtenconsent of the Joint International Selling Agents, ourCompany will not during the period of 12 months after theEffective Date, (A) offer, pledge, sell, accept subscription forissue, contract to sell, mortgage, charge, assign, sell anyoption, warrant or contract to purchase, purchase any optionor contract to sell, grant any option, right or warrant tosubscribe for or purchase, lend, or otherwise transfer ordispose of or create encumbrance over, directly or indirectly,conditionally or unconditionally, or otherwise any of theOffer Shares or any interests therein or any other securitiesconvertible into or exercisable or exchangeable for or whichcarry rights to subscribe or purchase any Offer Shares or anyinterests therein or file any registration statement with respectto any of the foregoing, (B) enter into any swap, hedge,derivative or other transactions or other arrangement thattransfers to another, in whole or in part, directly or indirectly,any of the economic consequences of ownership of the OfferShares or any interest in the Offer Shares, (C) deposit any ofthe Offer Shares or any securities convertible into orexercisable or exchangeable for or which carry rights tosubscribe or purchase any Offer Shares or any intereststherein in any depository receipt facilities or (D) publiclyannounce any intention to do any of the above without theprior consent of each of Joint International Selling Agents,whether any such transaction described in clause (A), (B), (C)above is to be settled by delivery of Offer Shares or suchother securities, in cash or otherwise.

The Selling Shareholder has agreed to similar restrictions fora period of six months after the Effective Date.

For more information, see “Plan of Distribution—Lock-upArrangements”.

Employee Stock Allocation Pursuant to Deed No.46 dated 14 July 2015 and circularletters of our Board of Commissioners dated 3 August 2015and 7 October 2015, we have agreed to grant an allocation ofPrimary Shares to our employees through an employee stockallocation programme in the amount of 30,000 PrimaryShares.

For more information, see “Management—Employee StockAllocation”.

Use of Proceeds The net proceeds from the Primary Offering, after deductingunderwriting fees and commissions and other estimatedtransaction expenses, are expected to be approximately Rp794billion (US$59.6 million). We intend to use the proceeds asset forth in “Use of Proceeds”. We will not receive anyproceeds from the sale of the Placement Shares by the SellingShareholder.

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Voting Rights Purchasers of the Offer Shares offered in this Global Offeringwill be entitled to the same voting rights as all other holdersof our Shares

Dividends The declaration, amount and any payment of future dividendson the Shares, if any, is discretionary and will be subject tothe recommendation of our Board and our shareholders. Formore information, see “Dividend Policy” and “Share Capital—Dividends”.

Payment for Primary Shares Payment to us for the Primary Shares is expected to be madeon or about 10 December 2015 in immediately availablefunds.

Payment for Placement Shares Payment to the Selling Shareholder for the Placement Sharesis expected to be made on or about 11 December 2015 inimmediately available funds.

Delivery of Primary Shares Delivery of the Primary Shares to successful applicants willbe made in electronic (scripless) form in the CollectiveDepository of the Indonesian Central Securities Depository,PT Kustodian Sentral Efek Indonesia (“KSEI”). See“Indonesian Capital Markets” and “Plan ofDistribution—Registration of the Offer Shares in KSEI.” ThePrimary Shares are expected to be delivered to purchasers onor about 10 December 2015.

Delivery of Placement Shares Delivery of the Placement Shares will be made againstpayment therefor in electronic (scripless) form for theiradministration in KSEI effected through a crossing of suchshares on the IDX on or about 11 December 2015.

Selling Restrictions Our Shares will be subject to certain selling restrictions asdescribed in the “Plan of Distribution—Selling Restrictions”section of this Offering Circular.

Timetable For information about the timetable of the Global Offering,see “Plan of Distribution—Important Dates”.

Risk Factors Prior to making an investment in our Shares, prospectiveinvestors should carefully consider the risks described underthe “Risk Factors” section of this Offering Circular.

Shares Our authorised share capital is Rp480 billion (US$36.0million) consisting of 4.8 billion Shares of par value Rp100each (US$0.01), of which 1.2 billion Shares were issued andoutstanding prior to the closing of the Global Offering and1,428,571,500 Shares will be issued and outstandingimmediately following the closing of the Global Offering,assuming the sale of all of the Offer Shares.

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SUMMARY FINANCIAL INFORMATION

You should read our summary consolidated financial information and other data presented below inconjunction with our consolidated financial statements and the related notes to the consolidatedfinancial statements included elsewhere in this Offering Circular. You should also read the section ofthis Offering Circular entitled “Management’s Discussion and Analysis of Financial Condition andResults of Operations”.

The following tables present the Company’s summary consolidated financial information as at thedates or for each of the periods indicated. The selected consolidated statements of comprehensiveincome for the years ended 31 December 2012, 2013 and 2014 and for the six months ended 30 June2015, and the selected consolidated statements of financial position data as at 31 December 2012,2013 and 2014 and as at 30 June 2015 in the tables below have been derived from the auditedconsolidated financial statements of the Company included elsewhere in this Offering Circular. Theselected consolidated statements of comprehensive income for the six months ended 30 June 2014 andthe selected consolidated statements of financial position data as at 30 June 2014 in the tables belowhave been derived from the unaudited consolidated financial statements of the Company includedelsewhere in this Offering Circular. Results for the interim periods are not necessarily indicative ofthe results for the full year.

Our Company was incorporated on 8 February 1999. Our Group was formed in the second half of 2014pursuant to a group restructuring exercise. As part of the group restructuring exercise, our Companybecame the holding company of our various subsidiaries and recorded such transaction using thepooling-of-interest method in accordance with Indonesia FAS, and restated its financial statements asat and for the year ended 31 December 2012 and 2013 as if such subsidiaries have been acquired asat 1 January 2012. For more details of the group restructuring, see “History, Corporate Restructuringand Group Structure.”

The audited consolidated financial statements of the Company as at and for the years ended 31December 2012, 2013 and 2014, and as at and for the six months ended 30 June 2015, includedelsewhere in this Offering Circular, have been audited by Kosasih, Nurdiyaman, Tjahjo & Rekan (amember firm of Crowe Horwath International), independent public accountants, in accordance withauditing standards established by the IICPA, as stated in their audit report appearing in this OfferingCircular.

The unaudited consolidated financial statements of the Company as at and for the six months ended30 June 2014, included elsewhere in this Offering Circular, have been reviewed by Kosasih,Nurdiyaman, Tjahjo & Rekan (a member firm of Crowe Horwath International), independent publicaccountants, in accordance with SRE 2410 “Standard on Review Engagement” established by theIICPA, as stated in their review report appearing in this Offering Circular (presented combined withthe audit report mentioned above). A review conducted in accordance with SRE 2410 established bythe IICPA is substantially less in scope than an audit conducted in accordance with auditing standardsestablished by the IICPA and, as stated in their review report appearing in this Offering Circular(presented combined with the audit report mentioned above), Kosasih, Nurdiyaman, Tjahjo & Rekan(a member firm of Crowe Horwath International), independent public accountants, did not audit anddo not express any opinion on such unaudited consolidated financial statements included in thisOffering Circular.

Our Financial Statements are reported in Rupiah, and our functional currency is the Rupiah. We haveprepared and presented our consolidated financial statements in accordance with Indonesian FAS,which differ in certain material respects from IFRS. For a description of certain significant differencesbetween Indonesian FAS and IFRS, see “Summary of Certain Principal Differences BetweenIndonesian FAS and IFRS”.

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Consolidated Statements of Financial Position

As at 31 December As at 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

ASSETS

CURRENT ASSETS

Cash and cash equivalents 9,465 62,869 44,354 48,939 3,671

Trade receivables

Third parties — net of allowance forimpairment losses of tradereceivables of Rp1,294 million,Rp8,930 million and Rp8,760million as at 31 December 2012,2013 and 2014 respectively, andRp9,112 million as at 30 June 2015 248,117 301,937 445,839 752,277 56,426

Related parties 33,750 — — — —

Other receivables 1,878 4,470 6,793 5,817 436

Inventories — net of allowance forimpairment and obsolescence ofinventories of Rp13,565 million,Rp6,550 million and Rp3,400 millionas at 31 December 2012, 2013 and2014 respectively, and Rp2,717million as at 30 June 2015 193,649 217,693 329,937 289,712 21,731

Prepaid taxes — 66 821 468 35

Advances 23,198 44,311 42,543 16,107 1,208

Current portion of prepaid expenses 3,230 8,477 18,347 20,048 1,504

TOTAL CURRENT ASSETS 513,287 639,823 888,634 1,133,368 85,011

NON-CURRENT ASSETS

Restricted deposits 11,688 10,453 31,524 38,604 2,896

Due from related parties 4,221 — — — —

Investment in Associates 2,996 44,550 42,925 37,816 2,836

Deferred charges — — 4,820 14,309 1,073

Fixed assets — net of accumulateddepreciation of Rp207,191 million,Rp272,127 million and Rp310,858million as at 31 December 2012, 2013and 2014, and Rp323,428 million asat 30 June 2015 444,097 618,304 870,052 958,829 71,919

Deferred tax assets 8,186 8,603 6,395 6,649 499

Estimated claim for tax refund — — 9,445 9,445 708

Prepaid expenses — net of currentportion 995 1,383 6,341 9,629 722

Other non-current assets 1,517 1,864 3,245 6,132 460

Total Non-current Assets 473,700 685,157 974,747 1,081,413 81,114

TOTAL ASSETS 986,987 1,324,980 1,863,381 2,214,781 166,125

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As at 31 December As at 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

LIABILITIES AND EQUITY-NET

CURRENT LIABILITIES

Short-term bank loans 253,475 265,201 546,504 586,205 43,970

Trade payables

Third parties 228,518 297,788 268,968 334,617 25,099

Related parties 44,987 120,611 157,227 114,851 8,615

Dividend payables 8,319 7,874 — — —

Other payables — 7,452 8,481 7,221 542

Accrued expenses 6,946 29,445 50,048 85,722 6,430

Taxes payable 5,895 9,419 16,083 42,674 3,201

Advances from customers 464 2,065 1,278 907 68

Current portion of long-term liabilities

Bank loans 43,730 31,223 30,656 46,238 3,468

Consumer financing payables 6,847 5,837 2,343 1,229 92

Finance lease payables — 6,229 8,704 8,355 627

Total Current Liabilities 599,181 783,144 1,090,292 1,228,019 92,111

NON-CURRENT LIABILITIES

Due to related parties 8,088 11,117 — — —

Liabilities for employees’ benefits 17,884 15,821 39,972 45,588 3,419

Deferred tax liabilities — — 294 5,563 417

Long-term liabilities — net of currentportion

Bank loans 64,074 41,728 62,228 103,901 7,793

Consumer financing payables 4,916 2,083 1,743 1,379 103

Finance lease payables — 9,895 6,468 2,510 188

Total Non-Current Liabilities 94,962 80,644 110,705 158,941 11,922

TOTAL LIABILITIES 694,143 863,788 1,200,997 1,386,960 104,032

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As at 31 December As at 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

EQUITY

Equity Attributable to Owners of theParent Company

Share capital — par value Rp1 millionper shares Authorised — 480,000shares Issued Issued and fully paidcapital — 120,000 shares as at 31December 2014 and 30 June 2015 and65,000 shares as at 31 December2012 and 2013 65,000 65,000 120,000 120,000 9,001

Capital pro forma arising fromrestructuring transactions of entitiesunder common control (10,720) (31,361) — — —

Additional paid-in capital — — (66,377) (66,377) (4,979)

Difference in value of transactions ofnon-controlling interest — — (1,966) (1,966) (148)

Other comprehensive income 154,812 296,310 409,992 434,956 32,625

Retained earnings

Unappropriated 82,831 130,606 199,453 315,918 23,696

Appropriated — — — 24,000 1,800

Sub Total 291,923 460,555 661,102 826,531 61,996

Non-controlling interest 921 637 1,282 1,290 97

TOTAL EQUITY — NET 292,844 461,192 662,384 827,821 62,093

TOTAL LIABILITIES AND EQUITY— NET 986,987 1,324,980 1,863,381 2,214,781 166,125

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Consolidated Statements of Comprehensive Income

Year ended 31 December Six months ended 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

SALES 1,692,137 2,267,314 3,339,386 1,746,627 131,010COST OF SALES 1,020,631 1,355,230 2,200,936 1,012,231 75,925

GROSS PROFIT 671,506 912,084 1,138,450 734,396 55,085

Selling expenses (477,399) (614,596) (728,308) (375,249) (28,146)General and administrative expenses (120,268) (178,544) (223,816) (128,107) (9,609)Interest expenses (31,141) (36,441) (60,503) (42,853) (3,214)Loss on foreign exchange — net (3,175) (11,751) (4,293) (5,145) (386)Bank administration expenses (1,877) (2,116) (3,143) (1,770) (133)Share of gain (loss) in Associates (55) (446) 2,118 (5,109) (383)Gain on sale of fixed assets 8 735 2,092 1,347 101Gain on sale of scrap 1,048 4,342 1,595 999 75Interest Income 63 634 1,217 977 73Others — net 448 3,592 12,119 7,053 529

INCOME BEFORE INCOME TAXEXPENSES — NET 39,158 77,493 137,528 186,539 13,992

INCOME TAX EXPENSES — NET (12,900) (19,037) (34.273) (45,203) (3,391)

CURRENT YEAR/PERIOD INCOMEBEFORE EFFECT OF PROFORMA ADJUSTMENT 26,258 58,456 103,255 141,336 10,601

Effect of pro forma adjustment oncurrent year/period income 5,286 (7,301) 905 — —

CURRENT YEAR/PERIOD INCOME 31,544 51,155 104,160 141,336 10,601

OTHER COMPREHENSIVEINCOME 177,885 151,122 97,405 24,101 1,808

COMPREHENSIVE INCOMEBEFORE EFFECT OF PROFORMA ADJUSTMENT ONOTHER COMPREHENSIVEINCOME 209,429 202,277 201,565 165,437 12,409

Effect of pro forma adjustment onother comprehensive income (23,329) (6,662) 2,985 — —

COMPREHENSIVE INCOME 186,100 195,615 204,550 165,437 12,409

Current year/period income attributableto: Owners of the Parent Company 31,460 50,893 103,995 141,330 10,601

Non-controlling interest 84 262 165 6 0.5

CURRENT YEAR/PERIOD INCOME 31,544 51,155 104,160 141,336 10,601

Total comprehensive incomeattributable to:Owners of the Parent Company 185,393 195,123 204,460 165,429 12,408

Non-controlling interest 707 492 90 8 0.6

COMPREHENSIVE INCOME 186,100 195,615 204,550 165,437 12,409

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RISK FACTORS

An investment in our Shares involves a number of risks. You should carefully consider all theinformation contained in this Offering Circular, including the risks described below, before making aninvestment decision. The risks set forth below do not purport to be complete or comprehensive in termsof all the risk factors that may arise in connection with our business or any decision to purchase, ownor dispose of our Shares. The risks and risk factors set forth below are not an exhaustive list of thechallenges currently facing us or that may develop in the future. Additional risks, whether known orunknown, may in the future have a material adverse effect on our business, financial condition andresults of operations. The market price of our Shares could decline due to such risks and you may loseall or part of your investment.

Risks relating to our Business and Industry

If we are unable to predict or meet consumer preferences or market trends, our products may losetheir appeal to consumers.

The FMCG market is highly competitive and consumers are tempted to change their choices andpreferences whenever new products are launched or introduced by our competitors. Our successdepends on our ability to predict, identify and interpret the tastes and habits of consumers and to offerproducts that appeal to those preferences and trends. In order to maintain our position in thiscompetitive market, we need to keep improving our existing products and develop new and innovativeproducts to respond to consumers’ demands and market changes.

Failure to successfully translate market trends into attractive product offerings may result in us beingunable to recover development, production and marketing costs of unsuccessful new products ormaintain the quality of our products in the future. This would adversely affect our market share,financial condition and overall profitability and financial performance. We must also be able todistinguish between short-term fads, mid-term trends and long-term changes in consumer preferences.If we are unable to accurately predict shifts in consumer preferences, or if we fail to introduce newand improved products to satisfy those preferences, or if we fail to satisfy consumer preferencesrelative to our competitors, our business, operations and growth potential would be adversely affected.

In addition, because of our varied consumer base, we must offer a sufficient array of products tosatisfy a broad spectrum of consumer preferences. If we fail to expand our product offeringssuccessfully across product categories, to rapidly develop products in faster growing and moreprofitable categories, or to execute our marketing strategy successfully, our business, operations andgrowth potential would be adversely affected.

Our efforts to continuously innovate and develop our products may not be successful.

One of our key business strategies is the development of new consumer goods and brands tocomplement our existing product lines to maintain our position in this competitive market. We havean in-house product development team consisting of 99 personnel as at 30 June 2015, and we alsocollaborate with external laboratories and universities for product development. See “Business—Salesand Marketing—Product Development and Innovation” for further details. For the years ended 31December 2012, 2013 and 2014 and the six months ended 30 June 2015, we spent Rp1,429 million,Rp1,307 million, Rp2,505 million and Rp908 million (US$0.1 million), respectively, on research anddevelopment. In 2012, 2013, 2014 and the first half of 2015, we launched 36, 29, 27 and 22 new SKUsof 10, eight, six and eight brands, respectively, and re-launched 45, 21, five and 33 existing SKUs ofthree, two, one and three brands, respectively. The development of products can be complex, uncertainand costly. While we intend to continue to introduce new products as well as different ranges, sizesand packaging for existing products in the future, our ability to successfully develop new products canbe affected by many factors beyond our control, including our ability to predict, identify and interpret

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consumer preferences and to offer products appealing to consumers accordingly as well as our abilityto meet the relevant regulatory standards and requirements. Further, market acceptance of a new brandor product is inherently uncertain and certain of the products we have introduced have not had themarket acceptance or growth of other products.

The launch and development of a new brand or product may involve considerable time. Further, wewill not be able to recover the related costs of research and development if such activities do not resultin the successful development of a new product. We also risk misjudging market trends, consumerpreferences, levels of demand and the prices to be charged for the new products. New brands andproducts may also face different market challenges, such as those relating to market positioning,marketing strategy, distribution management or regulatory compliance. Finally, we may not be able toreach agreements with our distributors or channel partners for the distribution of, or receive little orno retail demand for, new brands or new products. Failure of any of our new brands or new productscould lead to wasted resources and adversely affect our business, financial condition and results ofoperations.

Our performance and sales of our products may be materially and adversely affected if we fail toeffectively promote our brands.

Our brand image can influence consumers’ decisions in purchasing our products and the reputation andmarket recognition of our brands is one of the significant contributing factors to our success. Ourbusiness and market positions largely depend on our ability to successfully promote our brands. Wepromote and enhance our brand image through marketing and advertising methods, includingtelevision commercials, advertisements, in-store marketing and promotional activities, merchandisingmaterials and social media campaigns and industrial promotional exhibitions. These marketingstrategies, in particular television commercials, play an important role in building up our brand image.Our advertising and promotion expenses represented approximately 22.8%, 21.2%, 15.3% and 15.2%of our sales for the years ended 31 December 2012, 2013, 2014 and the six months ended 30 June2015.

We cannot assure you that our marketing and promotional activities will remain effective. If marketconditions change and if we fail to promote and enhance the image of our brands to adapt to suchchanges, our reputation would be adversely affected and the demand for our products may decline orfail to increase to the degree we have expected. As a result, we would lose our competitive advantagesand our business, financial condition and results of operations would be materially and adverselyaffected. In addition, as we advertise our products, we could be the target of claims relating to allegedfalse or deceptive advertising under applicable laws and regulations or face restrictions on ouradvertisements of our products.

We may be unable to effectively manage our distribution network.

In Indonesia, our Company and PT MKI distribute products through DLS, which in turn distributes theproducts through owned branches and third-party local distributors. DLS became the sole distributorof our Company and PT MKI in August 2014 and October 2013, respectively. As at 30 June 2015, DLShad 29 owned branches and 124 local distributors with whom DLS has entered into 189 distributionagreements (totalling 211 distribution centres), which included a total of 1,803 sales personnel. DLSmay enter into more than one distribution agreement for different business divisions with one localdistributor, and one local distributor may have more than one direct reach distribution outlet. BeforeDLS became the sole distributor of our Company and PT MKI, our Company and PT KSI, our associatewhich previously manufactured food products, sold their products to DLS and to third-party localdistributors directly, and DLS distributed the products through owned branches only. Our Companyalso engages overseas distributors for our overseas distribution and sales.

A significant portion of our revenue is derived from sales by DLS to local distributors. For the yearended 31 December 2014 and the six months ended 30 June 2015, sales to local distributors accountedfor approximately 61% and 56%, respectively, of our total sales. Our reliance on local distributors

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means that their sales performance and their ability to expand their business and sales networks arecrucial to the future growth of our business. The requirements we impose on local distributors mayaffect their willingness to enter into distribution agreements with us. For example, we generally do notallow local distributors to distribute competing brands. Furthermore, since we generally enter intoshort-term distribution agreements, usually for one-year terms, with local distributors, there can be noassurance that such agreements will be renewed on terms that are acceptable to us or at all. Any ofthe foregoing could materially and adversely affect our business, financial condition and results ofoperations.

In addition, we have limited ability to manage the activities of local distributors and overseasdistributors. We cannot assure you that the local distributors or overseas distributors will at all timesstrictly adhere to the terms and conditions under the distribution arrangements or that they will notcompete with each other for the market share of our products or PT MKI’s products, which may in turnhave a material adverse effect on our business. Failure to adequately manage the local distributors andoverseas distributors or non-compliance by the local distributors and overseas distributors with ourdistribution arrangements could harm our corporate image and disrupt our sales. Furthermore, thelocal distributors and overseas distributors may violate applicable laws or otherwise engage in illegalpractices, with respect to their sales and marketing of our products. In such case, we could be liablefor legal action taken against them and be required to pay damages or fines. In addition, our brand andreputation, our sales activities or the price of our products could be adversely affected if we becomethe target of any negative publicity as a result of any improper action taken by the local distributorsor overseas distributors.

We may encounter difficulties in expanding our distribution network.

As part of our business strategy, we plan to expand our distribution network in Indonesia and otherregions and countries in order to boost our business growth. We plan to achieve access to 1.4 milliondirect and indirect outlets by 2020 through increased cooperation with local distributors, as well asincreasing the number of owned branches. However, the success of our expansion plan is subject to,among other things:

• our ability to hire, train and retain skilled sales and managerial personnel for the sale anddistribution of our products;

• the existence and availability of suitable regions and locations for our expansion, inparticular for the expansion of our products;

• our ability to negotiate favourable cooperation terms with our distributors and wholesalers;

• the availability of adequate management and financial resources;

• the availability of suitable distributors;

• adapting of our logistics and other operational and management systems to an expandeddistribution network; and

• aligning the distributors’ interests with our own.

Accordingly, we cannot assure that we will be able to implement our expansion plan effectively orrecruit sufficient new distributors, wholesalers and sales personnel for the distribution of products. Ifwe encounter difficulties in expanding our distribution network, our growth prospects would belimited, which would in turn have a material adverse effect on our business, results of operations andprospects.

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Delays in delivery by us, or the independent third-party logistics providers retained by us, may affectour sales.

Our transportation requirements relating to the transportation and delivery of our products to ourdistributors, wholesalers and retailers are sourced from independent third-party logistics providers, ormet through the use of vans owned or leased by DLS. The vast majority of the products are deliveredby road (within Java) or by sea (outside Java), and we bear the transportation costs of delivery ofproducts from our plants to the warehouses of our distributors, wholesalers or retailers. Transportationcould be interrupted due to unforeseen events and could delay the delivery of our products tocustomers. Delivery disruptions may occur for various reasons beyond our control, including poorhandling by logistics providers, transportation bottlenecks, adverse weather conditions and naturaldisasters, social unrest and labour strikes, which could result in delayed or lost deliveries, and mayresult in loss of revenue and damage to our reputation. Poor handling by logistics providers or us couldalso damage our products.

In addition, any significant increase in the cost of transportation, such as increased fuel cost, willincrease our operating expenses. Distributors may also experience interruptions or delays in thedelivery of products to wholesalers or retailers (including our key customers) due to factors not withinour control, which could indirectly adversely affect us. Any delay or lost deliveries may result in lossof revenue, payments of compensation to customers and damage to our reputation, and may materiallyand adversely affect our business.

Our joint venture with Morinaga & Co. Ltd may expose us to additional financial, management,operational and supervision risks.

In July 2013, our Company and Mr. Harris Sanusi established a joint venture, PT MKI, with Morinaga& Co. Ltd for manufacturing and selling food products, which we believe has positively contributedto our business in respect of brand equity and production knowledge. However, as we only hold aminority interest of 29.4% in PT MKI and less than half the board of directors and board ofcommissioners of PT MKI is appointed by us, we do not have management, operational, or supervisorycontrol over PT MKI and may not be able to ensure that PT MKI’s decisions are consistent with ourbusiness, financial, management, operational and supervision interests.

Under the joint venture agreement, we and Morinaga & Co. Ltd are bound by non-competitioncovenants which prohibit us or Morinaga & Co. Ltd, independently or in collaboration with a thirdparty, other than PT MKI, from manufacturing or selling any food products belonging in any of thecategories of products which either we or Morinaga & Co. Ltd manufacture or sell in Indonesia duringthe period in which the joint venture agreement is effective. We and Morinaga & Co. Ltd are furtherprohibited, either independently or in collaboration with a third party, from causing a third party ofwhich we or Morinaga & Co. Ltd have substantial control or management of, except PT MKI, frommanufacturing or selling any food products belonging in any of the categories of products which eitherwe or Morinaga & Co. Ltd manufacture or sell in Indonesia during the period in which the jointventure agreement is effective. In the event that we or Morinaga & Co. Ltd wish to manufacture orsell any food products within Indonesia other than the food products covered by the joint ventureagreement, we or Morinaga & Co. Ltd must submit a written proposal to the other party for suchproducts to be manufactured or sold by PT MKI, and we or Morinaga & Co. Ltd may only manufactureor sell such products independently or in collaboration with a third party, other than PT MKI, if suchproposal is rejected by the other party within 14 days of receipt of the proposal.

As a newly established company with limited operating history, we cannot assure you that PT MKIwill generate positive net income or positive cash flow, or grow its business as planned. In the sixmonths ended 30 June 2015, the sales of food products manufactured by PT MKI decreased due toweaker market demand as a result of the slowdown in the growth of the Indonesian economy. Theability of the joint venture to ramp up its production capacities and output as planned may faceuncertainties. The joint venture’s limited operating history makes the evaluation of its business andprediction of its future operating results and prospects difficult.

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Further, Morinaga & Co. Ltd may not always have economic or business interests or goals that areconsistent with ours and as a result, Morinaga & Co. Ltd may act contrary to our business objectivesor may be unable or unwilling to perform their obligations under the joint venture agreement.Although we have not been materially constrained by our participation in the joint venture to date, noassurance can be given that the actions or decisions of our joint venture partner will not affect ourventure in a way that hinders our corporate objectives or reduces any anticipated cost savings orrevenue enhancement resulting from the venture. Any of the foregoing could adversely affect ourbusiness, results of operations and prospects.

Our business depends on a stable and adequate supply of raw materials, and our results may bematerially and adversely impacted as a result of increases in the prices of raw materials caused byfluctuations in foreign exchange rates or other conditions beyond our control.

The largest component of our production costs is raw materials, which comprise primarily of sugar,alcohol, gelatine, emollient, surfactant, fragrance and packaging materials such as aluminium cans andplastic bottles. Raw materials (including packaging materials) accounted for 79.2%, 71.2%, 56.5% and60.6% of our cost of sales, respectively, in 2012, 2013, 2014 and the six months ended 30 June 2015.Therefore, our production costs and profitability depend, in part, on our ability to source and maintaina stable and sufficient supply of raw materials at acceptable prices. We procure all of our raw materialsfrom within Indonesia except for aluminium cans, which we import from Singapore and Taiwan, andgelatine which we import indirectly from China. If we are unable to obtain raw materials in thequantities and of a quality that we require, our volume and/or quality of production will decline, whichin turn may have a material adverse effect on our results of operation.

The prices of raw materials fluctuate due to conditions outside of our control, including economicdevelopments, currency fluctuations, availability of supply, weather, consumer demand, taxes andtariffs, changes in governmental policies and programs, and other unforeseen circumstances. Of themain raw materials we use, the price of sugar is the most susceptible to fluctuation, due to the standardshort-term nature of the supply contracts. In addition, the payment for over 50% of the raw materialswe procure every year is made in U.S. dollars. Continued volatility in the prices of raw materials wepurchase and the fluctuations in foreign exchange could increase the costs of our products, and ourprofitability could suffer as a result. We have not hedged historically, and do not hedge currently,against increases in raw material costs. To the extent that any of the foregoing factors affect the pricesof such raw materials and we are unable to increase our prices, the results of our operations could bematerially and adversely affected.

Our business will be adversely affected if we lose our halal certification.

A large proportion of our consumer base is of the Muslim faith and can only consume products whichare halal. In order to assist consumers in determining if products are halal, the Government hasinstituted a certification process whereby vendors that prepare, process and sell their productsaccording to certain standards, including standards of hygiene during the preparation of such products,are permitted to label and market their products as halal. Our personal care products under four of ourpersonal care brands (“Ellips”, “Sasha”, “Resik-V” and “Ovale”) have received halal certificationfrom Indonesian Council of Ulama (Majelis Ulama Indonesia). In addition, all of our and PT MKI’sfood products and beverage products have received halal certification. Given the demographics of ourcore market, continued renewal of our halal certifications is of paramount importance to the successof our business.

Our halal certifications are subject to biennial renewal. The halal certification for our beverageproducts (Cap Panda, Tampico and Panther) expired on 20 November 2015. We are in the process ofrenewing such certification with the Indonesian Council of Ulama. While we believe we are in fullcompliance with the terms of our halal certifications and have processes and procedures to ensurecontinued compliance with these certifications, we do not have such control over the facilities of oursuppliers from whom we purchase raw materials and ingredients for our products. Our policy is topurchase our ingredients from suppliers that also hold valid halal certifications, but we cannot control

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situations in which these suppliers may not fully comply with their halal certification requirements.Such an occurrence may result in our own halal certifications being at risk for having purchased orused non-halal ingredients from such suppliers. If we are at any time unable to renew or maintain ourhalal certifications, or if consumers lose confidence in our products’ compliance with halalrequirements, even if based on unsubstantiated rumours, our business, financial condition, results ofoperations and prospects would be materially and adversely affected.

We have experienced significant growth in the past, and we may not be able to maintain such growthin the future.

We experienced significant growth in our sales and increased our sales from Rp1,692,137 million in2012 to Rp2,267,314 million in 2013 and to Rp3,339,386 million in 2014. Our sales grew fromRp1,595,262 million for the six months ended 30 June 2014 to Rp1,746,627 million (US$131.0million) for the six months ended 30 June 2015. Our gross profit margin for the years ended 31December 2012, 2013 and 2014 and the six months ended 30 June 2015 was 39.7%, 40.2%, 34.1% and42.0%, respectively.

We cannot give any assurance that we will continue to maintain our growth if our operational costscontinue to increase as a result of, among other factors, increased labour, manufacturing, raw materialsor transportation costs. Likewise, our licensors may increase the amount of royalty payment when werenew the licence agreements. We also cannot assure that our brands which have experienced highgrowth historically, such as “Ellips”, “Ovale”, “Eskulin” and “Cap Kaki Tiga”, will continue tomaintain such strong growth. Our profit margins may also be negatively affected if in the face ofincreasing competition, we provide more sales discounts to our local distributors or reduce our retailprices. They may also be affected by our inability to realise any efficiency gains in the production ofour products. Our growth has, and will continue to, put pressure on our managerial, financial,operational and other resources. We may need to increase employee compensation levels in order toretain our existing executives and staff and attract additional personnel. If we are unable to effectivelymanage our expanding operations and control increasing costs, our business, financial condition andresults of operations could be materially and adversely affected.

In addition, our historical results may not be indicative of our future performance. DLS became thesole distributor of our Company and PT MKI in August 2014 and October 2013, respectively. 2014represented the first full year of consolidated revenue and cost of sales following the establishmentof PT MKI. Before that, our Company and PT KSI, our associate which previously manufactured foodproducts, sold their products to DLS and to third-party local distributors directly, and DLS distributedthe products through owned branches only. Therefore, prior to November 2014, sales in our fooddivision reflected revenue generated by DLS owned branches from sale of PT KSI’s food products. Asa result, our historical financial data included in this Offering Circular may not necessarily beindicative of our financial condition and results of operations going forward.

We rely on licence agreements for the design, manufacturing, marketing and sales of some of ourproducts.

We rely on licence agreements with a number of international brands to use their respective brands orcharacters in the design, manufacture, marketing and sales of some of our products. See “Business —Intellectual Property” for details. For example, we have entered into a licence agreement with WenKen Drug Co. (Pte) Ltd for the use of the “Cap Kaki Tiga” brand, which we use for the productionof the “Cap Kaki Tiga” ready-to-drink remedy drink and our pharmaceutical products. Our “Cap KakiTiga” ready-to-drink remedy drink captured significant market share of remedy drinks products in2010-2014 due to strong promotional campaigns as well as new flavour launches. We derive asubstantial amount of our revenue from the sales of our products under licensed brands andtrademarks.

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These licence agreements are typically for a term of one to five years. Exceptionally, however, ourlicence agreement with Wen Ken Drug Co. (Pte) Ltd for the use of the “Cap Kaki Tiga” brand is fora term of 15 years, with the possibility of extension for a further 15 years. Some of the licenceagreements are renewable subject to certain conditions. The licence agreements in respect of thetrademarked characters are non-exclusive. Further, all of the licence agreements require minimumroyalty payments that are due before the scheduled payment dates, and some licence agreementsimpose various specific requirements, such as minimum advertising spending as a percentage of sales.In addition, some of these licence agreements also require our production processes and products tomeet specified quality and control standards and require us to submit promotional plans and materialsto the licensors for approval prior to use. The licence agreements are subject to early termination ifwe fail to meet these requirements or otherwise fail to perform our contractual obligations.

We cannot assure that the licensors will be satisfied with our performance under the licenceagreements, that the licensors will not seek to terminate the licence agreements or to seekcompensation from us due to their different interpretation of major terms of the licence agreements,or that we will be able to renew the licence agreements on the same or similar terms, or at all.Moreover, our licensors may modify the terms of the licence agreements upon renewal to make themless favourable to us. For instance, in 2014 the licensor of the Disney Standard Characters increasedthe yearly minimum guaranteed royalty payments when we renewed our agreement with it to produceand sell Disney “Cooling Water for Kids”. If any of the foregoing occurs or if we fail to renew anyof them upon their expiration, we will be unable to continue the design, manufacture, marketing andsales of products under that licensed brand, and our business, financial condition and results ofoperations will be materially and adversely affected.

Furthermore, there is no assurance that our licensors will continue to own the trademarks and otherintellectual property rights to the licensed characters and brands under our licensing agreements. If thetrademarks under these licensing agreements expire or are transferred to another third party, we maylose the right to use such trademarks and other intellectual property rights in the design, manufacture,marketing and sales of some of our products. This could have a material adverse effect on ourbusiness, financial conditions and results of operations.

We face intense competition, and if we fail to compete effectively, we may lose market share and ourresults of operation may be adversely affected.

The Indonesian consumer goods industry is highly competitive, and we expect it to become even morecompetitive. While we do not seek to compete with large FMCG competitors, there are a large numberof domestic and international manufacturers of products similar to ours. In addition, as we expand ourbusiness and diversify our product offerings, we may face competition for our new products indifferent markets. Competition is primarily manifested in the form of pricing concessions, newproduct introduction and intensive advertising campaigns. Some of our competitors may have been inbusiness longer than we have and may have substantially greater financial, research and development,marketing and other resources than we have. To sustain our competitive edge, we need to investcontinuously in product development, advertising and promotional activities and, as the case mayrequire, reduce our cost of sales.

We price our products based on a combination of different factors, including our ability to differentiateour products from those of our competitors. We have traditionally focused the development of ourproducts to fill selective segments and underpenetrated markets where we have been able to developstrong competitive brand equity. We differentiate our products from our competitors’ by regularlyintroducing new or improved products. However, we cannot assure that our current or potentialcompetitors will not provide products comparable or superior to those we provide or adapt morequickly than we do to evolving industry trends or changing market requirements. It is also possiblethat there will be consolidation in the consumer goods industry among our competitors, or thatalliances may develop among competitors, and that such competitors may rapidly acquire significantmarket share.

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Furthermore, competition may lead our competitors to substantially increase their advertisingexpenditures and promotional activities or to engage in irrational or predatory pricing behaviour. Wecannot assure that we will be able to compete effectively against current and future competitors or thatthird parties will not actively engage in activities, whether legal or illegal, designed to undermine ourbrand and product quality or to influence consumer confidence in our products. Increased competitionmay result in price reduction and loss of market share which could have a material adverse impact onour results of operations and financial condition.

We may be unable to adequately protect our intellectual property rights.

We consider the intellectual property rights relating to our business, particularly the trademarks thatwe use in connection with our products and the trade secrets of our proprietary formulas andproduction processes, to be a significant and valuable aspect of our business. We own the majority ofthe trademarks relating to our products and brands and we also license a few trademarks from thirdparties by way of various licensing agreements. We also use certain Kino trademarks owned by Mr.Harry Sanusi based on a borrow and use agreement between our Company and Mr. Harry Sanusi. See“Business — Intellectual Property” for details. Some of the trademarks relating to our products andbrands are still in the process of registration with the Directorate General of Intellectual Property (the“DGIP”). There can be no assurance that our application to the DGIP to register the trademarks willbe successful or that we can adequately protect our trademarks. Third parties may challenge our rightsto use the trademarks under registration and we could incur substantial costs in defending any claimsrelating to our trademarks.

We also rely on contractual arrangements and legal protections to protect our intellectual propertyrights. We employ a combination of contractual restrictions in agreements, such as confidentialityobligations, with employees, business partners and other entities to which we disclose our proprietaryinformation, including ingredients and production formulas. Furthermore, it is our policy to notdivulge full ingredients and formula of a product to any one employee. Any breach of confidentialityby our employees, business partners or any other entities having access to our formulas and other tradesecrets could result in third parties, including our competitors, gaining access to such formulas andtrade secrets. If our competitors are able to successfully imitate our proprietary formulas and/or ourproducts while managing to provide comparable products at competitive prices, our market share maydecrease. In addition, intellectual property-related laws and their implementation in Indonesia are stilldeveloping, which results in a degree of uncertainty as to interpretation and enforcement and whichmay limit the legal protections available to us. In the event that the protection afforded by law doesnot adequately safeguard our trade secrets and other intellectual property rights, we may suffersignificant losses in revenues, and our business, results of operations and financial position could bematerially and adversely affected.

Counterfeiting and imitation of popular consumer and branded products occurs from time to time inIndonesia. This is often conducted through a process of reverse engineering, which is a commoncounterfeiting method used in Indonesia. We have not experienced any issues with other companiescounterfeiting our brands or trademarks and we believe it would not be easy to do so. However, wecannot assure that we will be able to promptly detect the presence of counterfeited products in themarket, or that our anti-counterfeiting measures in general will prove effective in preventingcounterfeiting and imitation.

As with all businesses in the consumer products industry, we are also unable to assure thatcounterfeiting and misuse of our brands or trademarks will not occur in the future and, if it does occur,that we will be able to detect and deal with it effectively. Any occurrence of counterfeiting, imitationor misuse of our brands or trademarks could negatively impact our reputation, and lead to loss ofconsumer confidence in our brands. In addition, counterfeit and imitation products could result in areduction of our market share and result in an increase in our costs in respect of detection andprosecution.

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Negative publicity regarding the safety of consumer goods could affect our sales, reputation andprofitability.

Selling consumer products involves a number of reputational, regulatory, legal and related risks

regarding the safety of consumer products. Safety defects, including product contamination, spoilage,

product tampering or other adulteration, regardless of whether they actually occur or are merely

rumoured and regardless of whether they implicate our own products or those of our competitors,

could have a negative impact on our business due to adverse publicity, damage to our reputation and

loss of consumer confidence in our products, which may in turn adversely affect our sales. Regulatory

investigations, whether or not they directly involve us, and new regulatory measures regarding the

safety and quality of consumer products that affect our product categories could also adversely affect

our business, financial condition, results of operations and prospects.

We could also be adversely affected if consumers were to lose confidence in the health, nutritional or

lifestyle value of certain products or ingredients. This negative perception may include publicity

regarding the health or nutritional merits of our product segments in general, of other companies’

branded products or of our products specifically. Regulations motivated by concerns over health,

nutritional or lifestyle issues that implicate our products categories or key ingredients may also

adversely affect our business, financial condition, results of operations and prospects.

Negative perceptions concerning the safety of consumer goods, including ours, could influence

consumer preferences and discourage acceptance of some of our products. In turn, this could decrease

demand for our products and adversely affect our business, financial condition, results of operations

and prospects.

We may be subject to product liability claims.

We, like other consumer goods manufacturers, may face product liability claims, although we have not

faced any such claims to date. We may need to recall some of our products if they were to become

contaminated, adulterated, misbranded, or if they were tampered with. A widespread product recall or

market withdrawal may also result in significant losses due to the cost of conducting a recall,

including the destruction of product inventory, and loss of sales due to unavailability of the affected

product for a period of time. We may also be liable if the use of any of our products were to cause

injury, illness or death. This may result from tampering by third parties or product contamination or

degeneration, including the presence of foreign contaminants, chemical substances or other agents or

residues during the various stages of the procurement, production, transportation and storage

processes. Such illegal or harmful substances that we are not able to detect or identify using our

standard procedures may exist in the raw materials or may be brought into the production process due

to failure of our employees to follow our production standards, or may result from improper handling

during transit or by distributors or retailers.

In the event that our products are found to be unfit for consumption or detrimental to health we may

also be subject to regulatory investigations and be required to compensate affected parties. In addition,

adverse publicity about health and safety concerns, whether unfounded or otherwise, may discourage

consumers from buying our products. Even if a product liability claim is unsuccessful or is not fully

pursued, the negative publicity surrounding any assertion that our products caused personal injury or

illness may adversely affect our reputation and our brand image and in turn, adversely affect our

business, financial condition, results of operation and prospects.

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Changes in regulations or failure to comply with existing regulations could have a material adverseeffect on our business.

Our business activities are subject to extensive regulation by various Indonesian Governmentagencies, including the Ministry of Health, the Ministry of Trade, the Ministry of Industry, theMinistry of Finance, the Capital Investment Coordinating Board (Badan Koordinasi PenanamanModal (“BKPM”)), the National Agency of Drug and Food Control (Badan Pengawas Obat danMakanan) (“FDSA”)) and the Ministry of Environment and Forestry. For more information onregulations applicable to our business, see “Regulations”.

The manufacturing, marketing and distribution of consumer goods are subject to regulation that isgenerally becoming more complex and stringent. Those regulations control matters such as foodquality and safety, ingredients, advertising, specific matters regarding relations with distributors,health and safety and the environment. We are also regulated as to our licensing requirements, tradeand pricing practices, and tax matters. For example, we are required to register our food, beverage,cosmetics, and household supply products with Government authorities. Any suspension or revocationof these licenses, permits and approvals may have an adverse impact on our business.

In addition, we cannot assure you that licenses or permits necessary for our business operations willbe granted to or renewed by us in a timely manner, or at all. The need to comply with new or revisedtax, environmental, food quality and safety or other laws or regulations, new or changedinterpretations or enforcement of existing laws or regulations or new requirements from increasingregional autonomy, may have a material adverse effect on our business and results of operations.Further, if we are found to be non-compliant with applicable laws and regulations in these areas, wecould be subject to civil remedies, including fines, injunctions, or recalls, as well as potential criminalsanctions, any of which could have a material adverse effect on our business.

The loss of or failure to obtain, renew or comply with any or all of our licenses and permits couldmaterially and adversely affect our business. Moreover, changes in existing laws aimed at imposingmore stringent standards may cause us to incur additional compliance costs, which could have anadverse impact on our financial position.

Disruption of our production facilities or other operational risks could have an adverse effect onour business, financial condition and results of operations.

Our operations are subject to production limitations such as capacity constraints, mechanical andsystems failures, construction and equipment upgrades and delays in the delivery of machineries, anyof which could cause suspension of production and reduced output. Damage or disruption to ourmanufacturing capabilities due to weather, natural disaster, fire or explosion, terrorism, pandemics,strikes, repairs or enhancements at our facilities, disruptions of utility services, failures of equipment,or similar reasons, could impair our ability to manufacture our products. Some of these events couldalso result in environmental pollution, personal injury or wrongful death claims and other damage toour properties or the properties of others. Scheduled and unscheduled maintenance programs may alsoaffect our production output. We carry out routine maintenance of our production equipment and majormaintenance work during the Idul Fitri period. Any significant manufacturing disruption couldadversely affect our ability to manufacture and sell products, which could have a material adverseeffect on our business, results of operations and financial position.

We have limited insurance to cover our potential losses and claims.

Our operations are subject to various risks inherent in manufacturing operations. Many of theseoperating risks concern recklessness and negligence, which could cause personal injury and loss oflife, damage to or destruction of our properties and the properties of others and environmentalpollution, and could result in suspension of operations and the imposition of civil or criminalpenalties. We maintain property all risk insurance, covering our plants, machinery, equipment andvehicles. We also maintain insurance policies for marine cargo as well as sales fidelity insurance for

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our distribution activities. However, we do not carry product liability insurance for our products

unless required by the relevant license agreements. Under some of our license agreements, we are

required to maintain product liability insurance for our products. If we are found to be non-compliant

with such requirements, we could be in breach of the license agreements, which could have a material

adverse effect on our business.

In addition, we are not insured against business interruptions resulting from natural disasters such as

droughts, floods, earthquakes or severe weather conditions, any suspension or cessation in the supply

of utilities and other calamities. Any interruption to our operations, and the resulting losses or

damages, could materially adversely affect our business, results of operations and financial condition.

We use heavy machinery and equipment such as mixing, filling and packing machinery, which are

potentially dangerous in our operations. In addition, certain steps of our production processes involve

melting sugar and other raw materials at high temperatures using gas and steam, which are potentially

dangerous. Any significant accident caused by the use of such equipment or machinery could interrupt

our operations and result in legal and regulatory liabilities. While we provide personal injury

insurance for our employees and contract workers, our insurance coverage related to accidents

resulting from the proper or improper use of such equipment or tools may be inadequate to offset

losses arising from claims related to such accidents.

Any failure to maintain effective quality control systems in relation to our supplies, procurementand production could have a material adverse effect on our business and operations.

The quality of the products we sell is critical to our success. Maintaining consistent quality depends

significantly on the effectiveness of our quality control systems, which in turn depends on a number

of factors, including the design of our quality control systems and our ability to ensure our employees

adhere to those quality control policies and guidelines. Our quality control systems mainly consist of

quality control measures for supplies, procurement and production. However, there can be no

assurance that our quality control systems will prove to be effective at all times. Any significant

failure or deterioration of our quality control systems could have a material adverse effect on our

reputation, business and results of operations.

Our business operations could be disrupted if our information technology systems fail to performadequately.

The efficient operation of our business depends on our information technology systems. We rely on

our information technology systems, mainly SAP systems, to effectively manage our business,

including procurement of raw materials, production process, order entry and fulfilment, inventory

control and monitoring, billing and other business processes. The failure of our information

technology systems to perform as we anticipate could disrupt our business and could result in

transaction errors, processing and inventory management inefficiencies, and loss of sales, causing our

business and results of operations to suffer. In addition, our information technology systems may be

vulnerable to damage or interruption from circumstances beyond our control, including fire, natural

disasters, systems failures, security breaches, and viruses. Any such damage or interruption could have

a material adverse effect on our business and results of operations.

In order to meet the requirements of ISO 27001, we are currently upgrading our information

technology systems, which includes, among other measures, formalising and implementing regular IT

risk assessments, and developing a more comprehensive disaster recovery plan. We cannot assure you

that we will be able to complete the upgrade of our information technology systems or obtain ISO

27001 certification on time or at all.

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If we are unable to hire or retain key personnel or are unable to attract and retain qualifiedpersonnel, our business operations may be adversely impacted.

Our business depends on our ability to attract and retain key personnel who are highly experiencedin the FMCG industry. We compete for such personnel with other foreign and domestic companies. Inparticular, we are heavily dependent upon our senior management in relation to their expertise in theFMCG industry and product development personnel for development of new products and enrichmentof product offering. Our management team consists of experienced and qualified professionals, withprevious experience in leading international FMCG companies in the consumer and retail industry,particularly with respect to establishing, managing and operating consumer businesses. The departureof any of our senior management or the inability to hire or retain managers, research and developmentpersonnel, engineers and other highly skilled personnel could materially and adversely affect ourbusiness, financial condition, results of operations and prospects.

We face risks associated with our international operations, which could impair our ability to operateour business in overseas markets.

We have been exporting our personal care products to numerous countries and regions outside ofIndonesia, including in countries and regions, such as the Philippines, Malaysia and Vietnam, that aresubject to rapid changes in the economic, political and regulatory environment, which are beyond ourcontrol. For the years ended 31 December 2012, 2013 and 2014 and the six months ended 30 June2015, our sales generated from overseas markets accounted for approximately 1.8%, 4.0%, 3.8% and4.2%, respectively, of our total sales. We intend to continue exploring the overseas market and expectour sales from overseas to increase. As a result, we will continue to be exposed to various risksassociated with changes in the economic, political and regulatory environment in the countries orregions in which we operate. In particular, we face a number of challenges as a result of ourinternational operations and overseas expansion strategy, including: fluctuations in currency exchangerates; difficulties in identifying and establishing good business relationships with local distributors,wholesalers and other business partners who are knowledgeable about, and can function effectively in,overseas markets; and increased costs and complexities associated with the logistics of transportingour products overseas.

In addition, certain countries to which we export our products may impose technical, hygienic,environmental or other requirements on the export, distribution and sales of our products, which maybe more stringent than the standards imposed by the Government authorities. Although we believe thatwe comply in all material respects with all laws and regulations applicable to us and relevant to ourexport sales, it is the responsibility of our overseas distributors to complete all necessary proceduresto obtain all relevant health and safety approvals, certificates, registrations or any other legallyrequired documentation from the relevant government authorities in the destination countries withrespect to the relevant exported products. As such, we cannot assure that all of our overseasdistributors, export agents, our foreign customers or any other entities are in compliance with allaspects of laws and regulations applicable to our export sales, or that they can meet the relevantstandards or obtain the approvals, certificates, registrations or other documentation necessary to ourexport sales. Any of the foregoing could impair our ability to operate or expand our business overseasand could adversely affect our business, financial condition and results of operations.

If we pursue strategic acquisitions or joint ventures, we may not be able to successfully consummatefavourable transactions or successfully integrate acquired businesses.

From time to time, we may evaluate potential acquisitions or joint ventures that would further ourstrategic objectives. With respect to acquisitions and joint ventures, we may not be able to identifysuitable candidates, consummate a transaction on terms that are favourable to us, or achieve expectedreturns and other benefits as a result of integration challenges or anti-monopoly regulations. Further,with respect to joint ventures, our partners may have business interests that are contrary to our ownand may make decisions that may unfavourably affect our corporate objectives.

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Companies or operations acquired or joint ventures created by us may not be profitable or may not

achieve sales levels and profitability that justify the investments made. Non-competition clauses

commonly found in joint venture agreements could potentially lead to lost opportunities which could

hinder our growth. Our corporate development activities may entail financial and operational risks,

including diversion of management attention from existing core businesses, difficulty in integrating

or separating personnel and financial and other systems, and negative impacts on existing business

relationships with suppliers and customers. They could also result in potentially dilutive issuances of

equity securities; the incurrence of debt, contingent liabilities and/or amortisation expenses related to

certain intangible assets; and increased operating expenses, all of which could adversely affect our

business, financial condition, results of operations and prospects.

Our ability to obtain additional financing may be limited, which could delay or prevent thecompletion of one or more of our strategies.

Due to our rapid business expansion in recent years, we had net current liabilities of Rp85,894 million,

Rp143,321 million, Rp201,658 million and Rp94,651 million (US$7.1 million) as at 31 December,

2012, 2013 and 2014 and 30 June 2015. We have financed our working capital and capital expenditure

needs primarily through cash generated from our operating activities, working capital bank loans and

capital contributions. Our working capital needs and our capital expenditure needs may increase in the

future as we continue to expand our business, and we may have net current liabilities in the future

which could constrain our operational flexibility and adversely affect our ability to expand ourbusiness. If we do not generate sufficient cash flow from our operations to meet our present and futurefinancial needs, we may need to rely on additional external capital for funding. Our ability to raiseadditional capital will depend on the financial success of our current business and the successfulimplementation of our key strategic initiatives, as well as financial, economic, regulatory and marketconditions and other factors, some of which are beyond our control. We may not be successful inraising any required capital on reasonable terms and at required times, or at all. If we are unsuccessfulin raising additional capital or if new capital funding costs are higher than our prior capital fundingcosts, our business, financial condition and results of operations may be materially and adverselyaffected.

Legal disputes or proceedings could expose us to liability, divert our management’s attention andnegatively impact our reputation.

We may at times be involved in potential legal disputes or proceedings during the ordinary course ofbusiness operations relating to, among other things, product or other types of liability, employees’claims, labour disputes or contract disputes that could have a material and adverse effect on ourreputation, operations and financial condition. We are not involved in any material legal proceedingsor governmental investigations or enquiries and we are unaware of any material pending claims orlegal proceedings. If we become involved in material or protracted legal proceedings or other legaldisputes in the future, the outcome of such proceedings could be uncertain and could result insettlements or outcomes which adversely affect our financial condition. In addition, any litigation orlegal proceedings could incur substantial legal expenses as well as significant time and attention ofour management, diverting their attention from our business and operations.

Risks relating to Indonesia

Our Company is incorporated in Indonesia and a majority of our operations and assets are located inIndonesia. As a result, future political, economic, legal, regulatory, social conditions in Indonesia, aswell as natural disasters, international developments in or affecting Indonesia, certain actions andpolicies which the Government may, or may not, take or adopt may have a material adverse effect onour business, financial condition, results of operations and prospects.

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Emerging markets such as Indonesia are subject to greater risks than more developed markets, andif those risks were to materialise, their consequences could disrupt our business and you couldsuffer a significant loss to your investment.

We have historically derived a majority of our revenue from operations in Indonesia and we anticipatethat we will continue to do so. Emerging markets such as Indonesia have historically beencharacterised by significant volatility, and their political, social and economic conditions can differsignificantly from those in more developed economies. Specific risks that could have a materialimpact on our business, results of operations, cash flows and financial condition include:

• political, social and economic instability;

• exchange rate volatility;

• acts of warfare, terrorism and civil conflicts;

• state intervention, including tariffs, protectionism and subsidies;

• regulatory, taxation and legal structure changes;

• liability for remedial actions under health and safety regulations;

• the cost and availability of adequate insurance coverage;

• difficulties and delays in obtaining or renewing licenses, permits and authorisations;

• arbitrary or inconsistent governmental action;

• deficiencies in transportation, energy and other infrastructure; and

• expropriation of assets.

If any of the risks associated with investing in emerging markets, and in Indonesia in particular, wereto materialise, our business, results of operations and financial condition could be materially adverselyaffected, and the value of your investment could decline significantly.

Our operations are labour intensive and the increase in minimum wage may increase our operatingcosts.

Our business operations are labour intensive. As at 30 June 2015, we and PT MKI together had 8,076permanent and contract employees across four business divisions. Indonesia has undergone recentchanges in minimum wage policies and minimum wages in Indonesia have grown sharply in the lastcouple of years, possibly as a result of politicians looking for popular support ahead of regionalelections. For example, the minimum wage in Jakarta increased by 43.8% from 2012 to 2013, by10.9% from 2013 to 2014 and by 10.3% from 2014 to 30 June 2015. Any national or regional increaseof wages will directly and indirectly increase our operating costs and thus decrease our profit margin.Further, competition for employees may also result in higher level of wages, which could in turn resultin higher operating costs. If there is any significant increase in wages and we are unable to offset theincrease in our labour costs or pass along such increased labour costs to our customers, ourprofitability and results of operations could be materially and adversely affected.

Our operations could be adversely affected by disruptions to Indonesia’s infrastructure.

Our business operations rely on the effectiveness of Indonesia’s infrastructure in respect oftelecommunications, transportation networks, electricity, and ports. Any disruptions to these criticalinfrastructures could adversely affect our business operations and financial condition. We depend onour real-time information technology systems to effectively manage our business operations and a

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disruption to Indonesia’s telecommunications system could hinder our ability to process our business

data, sales data, inventory management systems and order fulfilment systems. Further, disruption of

electricity supply may impact our manufacturing facilities and as a result, affect our production and

distribution process which could adversely affect our reputation and financial condition. We also rely

on transportation networks and ports to distribute our products domestically and internationally, and

any disruption to these infrastructures could result in delays of our distribution activities or spoilage

of our products. We cannot assure you that any of the foregoing will not cause reputational,

operational and financial risk to our business.

The pollution of water resources in Indonesia could have a detrimental impact on our ability toproduce high quality, safe products.

Water pollution is a significant problem in Indonesia, and one which directly impacts our business as

water is a key ingredient in our beverage and personal care products and plays an important role in

our production process. In terms of water quality and sanitation, Indonesia ranks among the worst

countries in Asia. The economic impact associated with water pollution in Indonesia is considerable,

and this impact is further exacerbated by the pressure which Indonesia’s rising population and

industrial development is putting on water resources and sanitation.

Water is a key component of many of our products and we rely on a sustainable supply of clean water

for the production of our products. Further deterioration of the water resources available to us in

Indonesia could threaten our ability to produce our products to the required standards, both of ourcustomers and of regulators, thereby materially and adversely affecting our businesses, financialcondition, results of operations and prospects.

Depreciation in the value of the Rupiah may adversely affect our business, financial condition,results of operations and prospects.

During the period between 1 January 2012 and 31 December 2014, the Rupiah/U.S. dollar exchangerate ranged from a low of Rp8,892 per U.S. dollar to a high of Rp12,900 per U.S. dollar. In the firsthalf of 2015, the Rupiah continued to depreciate, given the strengthening trend of the U.S. dollar. Asat 30 June 2015, the Rupiah/U.S. dollar exchange rate stood at Rp13,332 per U.S. dollar. We cannotassure you that further depreciation of the Rupiah against other currencies, including the U.S. dollar,will not occur. To the extent the Rupiah depreciates further, our assets under cash and cash equivalent,trade receivables, other receivables and restricted deposits in foreign currencies would decrease inRupiah terms, and our obligations under our trade payables, accrued expenses, other payables,consumer financing payables, finance lease payables and monetary liabilities would increase inRupiah terms. Such depreciation of the Rupiah would result in additional losses on foreign exchangetranslation and significantly impact our other income and net income.

In addition, while the Rupiah has generally been freely convertible and transferable (except thatIndonesian banks may not transfer Rupiah to persons outside of Indonesia who lack a bona fide tradeor investment purpose), from time to time, Bank Indonesia has intervened in the currency exchangemarkets in furtherance of its policies, either by selling Rupiah or by using its foreign currency reservesto purchase Rupiah. We cannot assure you that the current floating exchange rate policy of BankIndonesia will not be modified or that the Government will take additional action to stabilise, maintainor increase the value of the Rupiah, or that any of these actions, if taken, will be successful.Modification of the current floating exchange rate policy could result in significantly higher domesticinterest rates, liquidity shortages, capital or exchange controls or the withholding of additionalfinancial assistance by multinational lenders. This could result in a reduction of economic activity, aneconomic recession, loan defaults or declining usage of our subscribers, and as a result, we may alsoface difficulties in funding our capital expenditures and in implementing our business strategy.

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We may be exposed to uncertainty in the application of Bank Indonesia’s regulation on the use ofRupiah for Indonesian domestic transactions.

Effective 1 July 2015, Bank Indonesia Regulation No. 17/3/PBI/2015 on the Obligation to Use Rupiah(“PBI 17/3/PBI/2015”) requires that whenever an Indonesian party enters into, amends or renews anagreement for transactions with customers domiciled or operating within the territory of Indonesia, itmust denominate the contract price in Rupiah and receive payment in Rupiah, subject to certainexceptions. See “Exchange Rates and Exchange Controls — Indonesian Law on Currency” for furtherdetails. Failure to comply with PBI 17/3/PBI/2015 can be subject to sanctions in the form of writtenwarnings and fine (up to a maximum of 1 billion Rupiah) as well as prohibitions on being involvedin transactions.

A majority of our raw materials are procured from suppliers domiciled or operating in Indonesia. Ourpayments for over half of these raw materials were previously made in U.S. dollars. Currently, we arein the process of renegotiating supply contracts with some of our suppliers and we expect ourpayments in U.S. dollars to decrease. As a majority of our sales is in Rupiah and our functionalcurrency is Rupiah, we do not expect this regulation will have a material adverse effect on ourbusiness and financial condition. Nevertheless, we cannot assure that PBI 17/3/PBI/2015 will notimpact our future business or that any such application will not result in significant changes ineconomic facts and circumstances in turn affecting our business.

Domestic, regional or global economic changes may adversely affect our business.

We derive a majority of our revenue from sales of our products in Indonesia. The success of ourbusiness depends on the condition and growth of the Indonesian consumer market, which, in turn,depends on worldwide economic conditions and individual income levels in Indonesia and their impacton levels of consumer spending. There are many factors affecting the level of consumer spending,including but not limited to interest rates, currency exchange rates, recession, inflation, deflation,political uncertainty, taxation, stock market performance, unemployment level and general consumerconfidence.

The Government has taken many steps to maintain economic stability and public confidence in theIndonesian economy. However, continuation of global financial slowdown or any new financial crisismay negatively impact economic growth, the Government’s fiscal position, the Rupiah’s exchange rateand other facets of the Indonesian economy. In addition, the Government continues to have a largefiscal deficit and a high level of sovereign debt, its foreign currency reserves are modest, the Rupiahcontinues to be volatile with poor liquidity, and the banking sector suffers from high levels ofnon-performing loans. If the economy continues to fluctuate or decline, Indonesia’s economic growth,its fiscal position, the Rupiah’s exchange rate and other facets of its economy may be negativelyaffected.

There can be no assurance that any improvement in Indonesia’s economic condition will bemaintained. In particular, any changes in the regional or global economic environment that result ina loss of investor confidence in the financial systems of emerging and other markets, or other factors,may cause increased volatility in the Indonesian financial markets and inhibit or reverse the growthof the Indonesian economy. Any such increased volatility, slowdown or negative growth couldmaterially and adversely affect our business, financial condition, results of operations and prospects.

Political and social instability may adversely affect us.

Indonesia continues to face various socio-political issues and has, from time to time, experiencedpolitical instability and social and civil unrest. Such instances of unrest have highlighted theunpredictable nature of Indonesia’s changing political landscape. Indonesia also has many politicalparties, with no political party winning a clear electoral majority to date. These events have resultedin political instability, as well as general social and civil unrest on certain occasions in recent years.

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In 2004 Indonesians directly elected the President, Vice-President and representatives in theIndonesian Parliament for the first time. Indonesians have also begun directly electing heads andrepresentatives of local and regional governments. It is likely that increased electoral activity will beaccompanied by increased political activity in Indonesia. Political and related social developments inIndonesia could result in civil disturbances that could directly or indirectly, materially and adverselyaffect our businesses, financial condition, results of operations and prospects.

Labour activism and strikes, or failure to maintain satisfactory labour relations may adverselyaffect our business.

Laws and regulations which facilitate the formation of labour unions, combined with weak economicconditions, have resulted, and may continue to result, in labour unrest and activism in Indonesia. In2000, the Government issued Law No. 21/2000 (the “Labour Union Law”). The Labour Union Lawpermits employees to form unions without employer intervention. On 25 February 2003, a committeeof the Indonesian Parliament, the Indonesian House of Representatives (or Dewan Perwakilan Rakyat(“DPR”)), passed Law No. 13/2003 (the “Labour Law”). The Labour Law took effect on 25 March2003 and requires further implementation of regulations that may substantively affect labour relationsin Indonesia.

The Labour Law increased the amount of mandatory severance, service and compensation paymentspayable to terminated employees and introduced other regulations that may substantively affect labourrelations in Indonesia. For example, the Labour Law requires companies with 50 or more employeesto establish bipartite forums with participation from employers and more than 50% of the employeesof a company in order for a collective labour agreement to be negotiated and creates procedures thatare more permissive to the staging of strikes.

The Government subsequently proposed to amend the Labour Law in a manner which, in the view oflabour activists, would result in reduced pension benefits, the increased use of outsourced employeesand prohibitions on unions to conduct strikes. In April 2006, thousands of workers across Indonesiaprotested against these proposed revisions to the Labour Law. In January 2007, the Governmentattempted to formulate a draft regulation relating to termination payments which would redefine theentitlement of employees to termination payments. The proposed regulation would have introducedsalary caps that would limit the eligibility of employees to termination payments under the LabourLaw. This initiative also met with significant opposition from labour unions and workers’ interestgroups. Discussions relating to the proposed regulation have been suspended indefinitely. TheGovernment has proposed a plan to revise the Labour law to the DPR as the agenda of the NationalLegislation Program (Program Legislasi Nasional). However, no specific law has been enacted tosupersede the Labour Law to date.

Labour unrest and activism in Indonesia could disrupt our operations and could affect the financialcondition of Indonesian companies in general, depressing the prices of Indonesian securities on theIDX or other stock exchanges and the value of the Indonesian Rupiah relative to other currencies. Suchevents could materially and adversely affect our businesses, financial condition, results of operationsand prospects.

Indonesia is located in an earthquake zone and is subject to significant geological risk that couldlead to economic loss.

The Indonesian archipelago is one of the most volcanically active regions in the world. BecauseIndonesia is located in the convergence zone of three major lithospheric plates, it is subject tosignificant seismic activity that can lead to destructive earthquakes and tsunamis, or tidal waves. Inrecent years, a number of natural disasters have occurred in Indonesia, including major earthquakes,which resulted in tsunamis and volcanic activity. In addition to these geological events, Indonesia hasalso been struck by other natural disasters, such as heavy rains and flooding. All of the above resultedin loss of life, the displacement of large numbers of people and widespread destruction of property.

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Future geological occurrences could significantly impact the Indonesian economy. A significantearthquake or other geological disturbance in any of Indonesia’s more populated cities could severelydisrupt the Indonesian economy and undermine investor confidence, thereby materially and adverselyaffecting our businesses and prospects.

Terrorist activities in Indonesia could destabilise the country, thereby adversely affecting ourbusiness, financial condition, results of operations and prospects.

In Indonesia during the last two decades, there have been various bombings directed towards theGovernment, foreign governments and public and commercial buildings frequented by foreigners.Most recently, on 17 July 2009, bombs exploded at the Ritz Carlton and JW Marriott hotels in Jakarta,killing seven people and injuring more than 50 others.

There can be no assurance that further terrorist acts will not occur in the future. Such terrorist actscould destabilise Indonesia and increase pressures on the Government as it considers responses to suchinstability and unrest, thereby adversely affecting investors’ confidence in Indonesia and theIndonesian economy. Violent acts arising from and leading to instability and unrest have in the pasthad, and could continue to have, a material adverse effect on investment and confidence in, and theperformance of, the Indonesian economy, and in turn our businesses. In addition, future terrorist actsmay target our facilities and our insurance policies generally do not cover terrorist attacks.

Judgments of a foreign court may not be enforceable against us.

We are a limited liability company incorporated under the laws of Indonesia. Substantially all of ourcommissioners, directors and executive officers reside in Indonesia. Substantially all of our assets andsubstantially all of the assets of our Indonesian-citizen/resident directors and executive officers arelocated in Indonesia. As a result, it may be difficult for purchasers to effect service of process uponsuch persons, or to enforce against us or any of them any court judgments obtained in courts outsideof Indonesia.

We have been advised by our Indonesian legal advisors that decisions issued by courts outsideIndonesia are not recognised nor are they enforceable in Indonesia, except for the foreign arbitralaward, the execution of which may be requested. However, a foreign court judgment may beadmissible at trial as evidence and may be given such evidentiary weight as an Indonesian court, inits sole discretion, deems appropriate under such circumstances. A claimant may be required to pursueclaims in Indonesian courts under Indonesian law. Re-examination of the underlying claim de novowould be required before the Indonesian court.

The claims and remedies available under Indonesian law may not be as extensive as those availablein other jurisdictions. There can be no assurance that the Indonesian courts would protect the interestsof investors in the same manner or to the same extent as would courts in more developed countriesoutside Indonesia. See “—The Indonesian legal system is subject to considerable discretion anduncertainty” below.

The Indonesian legal system is subject to considerable discretion and uncertainty.

Indonesian legal principles or their practical implementation by Indonesian courts differ materiallyfrom those that would apply within the United States, the European Union and other countries.Indonesia’s legal system is a civil law system based on written statutes as well as judicial andadministrative decisions that do not constitute binding precedent and are not systematically published.Indonesia’s commercial and civil laws were historically based on Dutch law, as in effect prior toIndonesia’s independence in 1945, and some have not been revised to reflect the complexities ofmodern financial transactions and instruments. Indonesian courts may be unfamiliar with sophisticatedcommercial or financial transactions, leading in practice to uncertainty in the interpretation andapplication of Indonesian legal principles. The application of Indonesian law depends upon subjectivecriteria such as the good faith of the parties to the transaction and principles of public policy, the

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practical effect of which is difficult or impossible to predict. Indonesian judges operate in an

inquisitorial system; have very broad fact-finding powers; and a high level of discretion in relation to

the manner in which those powers are exercised. In practice, Indonesian court decisions may omit a

clear articulation of the legal and factual analysis of the issues presented in a case.

As a result, the administration and enforcement of laws and regulations by Indonesian courts and

Indonesian governmental agencies may be subject to considerable discretion and uncertainty. In

addition, because relatively few disputes relating to commercial matters and modern financial

transactions and instruments are brought before Indonesia’s courts, such courts do not necessarily

have the expertise and experience in dealing with such matters, leading in practice to uncertainty in

the interpretation and application of Indonesian legal principles. There is no certainty as to how long

it will take for proceedings in Indonesian courts to be concluded, and the outcome of proceedings in

Indonesian courts may be more uncertain than that of similar proceedings in other jurisdictions.

Accordingly, it may not be possible for purchasers to obtain swift and equitable enforcement of their

legal rights.

Additionally, court services in Indonesia may not be reliable as to the assistance of material disputes,

the filing of winding-up or insolvency petitions or any creditors’ claims or claims with respect to the

enforcement of legal awards.

The interpretation and implementation of legislation on regional governance in Indonesia isuncertain and may adversely affect us.

Indonesia is a large and diverse nation, covering a multitude of ethnicities, religions, languages,

traditions and customs. Prior to 1999, the Government controlled almost all aspects of national and

regional administration. The period following the end of the administration of former President

Soeharto was marked by widespread demand for greater regional autonomy. In response to such

demand, in 1999, the Indonesian Parliament passed Law No. 22 of 1999 on Regional Government,

which has been amended several times. This law was replaced by Law No. 23 of 2014, which was most

recently amended by Law No. 9 of 2015. In 1999, the Indonesian Parliament also passed Law No. 25

of 1999 on Financial Balances Between the Central and Regional Governments, which was later

replaced by Law No. 33 of 2004 on the same subject matter.

Under these laws, regional autonomy was expected to give regional governments greater powers and

responsibilities over the use of national assets and to create a balanced and equitable financial

relationship between the central and regional governments. Regional autonomy laws and regulations

have changed the regulatory environment for companies in Indonesia by decentralising certain

regulatory, taxing and other powers from the Government to regional governments, and this creates

uncertainty. These uncertainties include a lack of implementing regulations on regional autonomy and

a lack of government personnel with relevant sector experience at some regional government levels.

Moreover, limited precedent or other guidance exists on the interpretation and implementation of the

regional autonomy laws and regulations. In addition, pursuant to the regional autonomy laws, regional

governments are given the authority to adopt their own regulations and under the pretext of regional

autonomy, certain regional governments have put in place various restrictions, taxes and levies which

may differ from restrictions, taxes and levies put in place by other regional governments and/or are

in addition to restrictions, taxes and levies stipulated by the central Government. Our business and

operations are located throughout Indonesia and may be adversely affected by conflicting or additional

restrictions, taxes and levies that may be imposed by the applicable regional authorities.

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Indonesian accounting standards differ from those in other jurisdictions.

Our consolidated financial statements are prepared in accordance with Indonesian FAS, which differ

in certain respects from IFRS and U.S. GAAP. As a result, our consolidated financial statements and

reported earnings could be different from those which would be reported under IFRS or U.S. GAAP.

Such differences may be material. This Offering Circular does not contain a reconciliation of our

consolidated financial statements to IFRS or U.S. GAAP. Had our financial statements and other

financial information been prepared in accordance with IFRS or U.S. GAAP, the results of operations

and financial position may have been materially different. Because differences exist between

Indonesian FAS and IFRS or U.S. GAAP, the financial information in respect of us contained in this

Offering Circular may not be an effective means to compare us with other companies that prepare their

financial information in accordance with IFRS or U.S. GAAP. See “Summary of Certain Differences

Between Indonesian FAS and IFRS.” In making an investment decision, investors must rely upon their

own examination of us, the terms of the Global Offering and the financial information contained in

this Offering Circular. Potential investors should consult their own professional advisors for an

understanding of the differences between Indonesian FAS and IFRS or U.S. GAAP, and how such

differences might affect the financial information contained herein.

Downgrades of credit ratings of the Government or Indonesian companies could adversely affectour business.

Certain recognised statistical rating organisations, including Moody’s Investors Service Inc.

(“Moody’s”) and Fitch Ratings (“Fitch”), have previously downgraded Indonesia’s sovereign rating

and the credit ratings of various credit instruments of the Government, as well as a large number of

Indonesian banks and other companies. Indonesia’s sovereign foreign currency long-term debt now is

rated as investment grade by Moody’s and Fitch but there is no assurance as to future performance and

ratings. Any future ratings downgrade could have an adverse impact on liquidity in the Indonesianfinancial markets, the ability of the Government and Indonesian companies, including us, to raiseadditional financing and the interest rates and other commercial terms at which such additionalfinancing is available. Interest rates on any floating rate Rupiah-denominated debt we may have in thefuture would also likely increase. Such events could have material adverse effects on our business,financial condition, results of operations and prospects.

The outbreak of any severe communicable disease in Indonesia or elsewhere may have an adverseeffect on the economies of certain Asian countries and may adversely affect our results ofoperations.

The outbreak of an infectious disease in Asia (including Indonesia) and elsewhere, together with anyresulting travel restrictions or quarantines, could have a negative impact on the economy and businessactivity in Indonesia and thereby adversely affect our financial performance. Examples include theoutbreak in 2003 of Severe Acute Respiratory Syndrome (“SARS”), the outbreak in 2004 and 2005 ofAvian influenza, or “bird flu”, in Asia and, in April 2009, an outbreak of the Influenza A (H1N1) viruswhich originated in Mexico but spread globally including confirmed reports in Indonesia, Hong Kong,Japan, Malaysia, Singapore, and elsewhere in Asia, and the outbreak of the H7N9 flu virus in certainparts of the People’s Republic of China. An outbreak of avian flu, SARS, the Influenza A (H1N1) virusor another contagious disease, or the spread of the H7N9 flu virus in the Asian region, or the measurestaken by the governments of affected countries, including Indonesia, against such potential outbreaks,could seriously interrupt our operations or the services or operations of our suppliers and customers,which could have a material adverse effect on our business, financial condition, results of operationsand prospects. The perception is that an outbreak of avian flu, SARS, the Influenza A (H1N1) virusor another contagious disease that may occur may also have an adverse effect on the economicconditions of countries in Asia, including Indonesia.

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Risks relating to an Investment in Our Shares

Conditions in the Indonesian securities market may affect the price or liquidity of our Shares andthe absence of a prior market in the Shares may contribute to a lack of liquidity.

We have applied to list the Shares on the IDX. There is currently no market for the Shares. There canbe no assurance that a market will develop for the Shares, or if a market does develop, that the Shareswill be liquid. The Indonesian capital markets are less liquid, may be more volatile and have differentreporting standards than capital markets in developed countries. Also, prices in the Indonesian capitalmarkets are typically more volatile than in such other markets. Therefore, we cannot predict whethera trading market for the Shares will develop or how liquid that market will be.

The ability to sell and settle trades on the IDX may be subject to delays. In light of the foregoing, therecan be no assurance that a holder of the Shares will be able to dispose of the Shares at prices or attimes at which such holder would be able to do so in more liquid securities markets or at all.

The Shares will not be listed on the IDX for a maximum of three working days after the end of theallocation period for the Global Offering. During that period, purchasers will be exposed tomovements in the price of the Shares without the ability to dispose of the purchased Shares.

The price of the Shares may fluctuate widely.

The price of the Shares after the Global Offering may fluctuate widely and may trade at pricessignificantly below the Offering Price, depending on many factors, including among others:

• prices of raw materials;

• differences between our actual financial and operating results and those expected bypurchasers and analysts;

• announcements made by us in respect of the opening or acquisition of new productionfacilities/joint ventures/new businesses/expansion of distribution networks;

• changes in analysts’ recommendations or perceptions of us or Indonesia;

• changes in general economic, political or market conditions in Indonesia;

• involvement in litigation;

• changes in prices of equity securities of foreign (particularly Asian) and emerging marketscompanies;

• stock market price fluctuations; and

• the sale of shares by our Controlling Shareholders.

The International Selling Agents and the Joint Domestic Lead Underwriters will not over-allotshares or otherwise stabilise the market price of our Shares.

The International Selling Agents and the Joint Domestic Lead Underwriters will not over-allot theOffer Shares or take other actions to stabilise or maintain the market price of the Offer Shares at levelswhich might not otherwise prevail in the open market. This is commonly done in other securitiesmarkets in the 30-day period immediately following the date of commencement of dealing in securitieson the relevant exchange. As a result, the market price of the Offer Shares will be more susceptibleto a decline than if such International Selling Agents and Joint Domestic Lead Underwriters werepermitted to take such actions.

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Fluctuations in the exchange rate of the Rupiah with respect to the U.S. dollar or other currencieswill affect the foreign currency equivalent of the value of the Shares and any dividends.

Fluctuations in the exchange rates between the Rupiah and other currencies will affect the foreign

currency equivalent of the Rupiah price of the Shares on the IDX. Such fluctuations will also affect

the amount that holders of the Shares will receive in foreign currency upon conversion of: (i) any cash

dividends or other distributions we pay in Rupiah on the Shares; and (ii) any proceeds paid in Rupiah

from any sale of the Shares in a secondary trading market.

Future sales of the Shares could adversely affect the market price of the Shares.

Future sales of substantial amounts of the Shares in a public market, or the perception that such sales

may occur, could adversely affect the prevailing market price of the Shares or our ability to raise

capital through a public offering or rights issue of additional equity or equity-linked securities.

Immediately following the Global Offering, approximately 80% of the total outstanding Shares are

expected to be held directly or indirectly by the current shareholders, assuming the sale of all of the

Offer Shares. We have agreed to certain restrictions on our ability to transfer or otherwise dispose of

the Shares for limited periods following the date the Shares are listed on the IDX.

The interests of our Controlling Shareholders may conflict with the interests of purchasers of theOffer Shares.

After the Global Offering, our Controlling Shareholders will collectively beneficially own

approximately 80% of our outstanding Shares, assuming the sale of all of the Offer Shares. See

“History, Corporate Restructuring and Group Structure” and “Principal Shareholders”. Consequently,

they have, and will continue to have, the power to control us, including the power to:

• approve our merger, consolidation, or dissolution;

• exercise significant influence over our business policies and affairs;

• elect a majority of our directors and commissioners; and

• determine the outcome of any action requiring shareholder approval (other than the

approval of conflict-of-interest transactions in which a controlling shareholder who has a

conflict of interest or is affiliated with a director, commissioner or principal shareholder

(defined as a direct/indirect holder of 20% or more of the voting rights of the Company)

who has a conflict of interest is required to abstain under OJK rules), including the timing

and payment of any future dividends.

Our Controlling Shareholders may have other business interests outside of our operations and may

take actions, which may or may not involve us, that prefer or benefit them or other companies over

us, which could materially and adversely affect our business, financial condition, results of operations

and prospects.

From time to time, we enter into, and expect to continue to enter into, transactions with entities

controlled by our Controlling Shareholders and other related parties in the ordinary course of business.

Any conflict-of-interest transaction that we undertake with related parties after the Offering must be

approved by our independent shareholders and fulfil other requirements under BAPEPAM-LK rules.

There can be no assurance that any amounts we may pay in these transactions would necessarily reflect

the prices that would be paid by an independent third party in comparable transactions.

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Prior dividend distributions are not an indication of our future dividend policy.

Our Company distributed cash dividends of Rp5,850 million, Rp5,850 million and Rp21,931 millionfrom retained earnings for the financial years 2012, 2013 and 2014 respectively. Historical dividenddistributions are not indicative of our future distribution policy and we give no assurance thatdividends of similar amounts or at similar rates will be paid in the future.

Our ability to declare dividends in relation to the Shares will depend on future financial performance,which, in turn, depends on successfully implementing our growth strategy, on competitive, regulatory,technical, environmental and other factors, general economic conditions, demand and selling pricesfor our products, and other factors specific to the consumer goods industry, many of which are beyondour control. In addition, any future debt refinancing and shareholder agreements may containrestrictions on our ability to pay dividends.

The net asset value of the Offer Shares issued in the Global Offering is significantly less than theOffering Price and purchasers will incur immediate and substantial dilution.

The Offering Price is substantially higher than the net asset value per share of the outstanding Sharesissued to our existing shareholders. Therefore, purchasers of the Offer Shares will experienceimmediate and substantial dilution and our existing shareholders will experience a material increasein the net asset value per share of the Shares they own.

Failure to comply with disclosure and internal control and financial reporting requirements, andother risk management and related practices, appropriate for a publicly listed company could harmour operations and our ability to comply with our periodic reporting obligations.

After the completion of the Global Offering, we will become a public company subject to the reportingrequirements of the IDX, the stock exchange on which our Shares will be listed. IDX rules andregulations require, among other things, that we maintain effective disclosure controls and proceduresand relevant internal controls over financial reporting to provide regular financial and other materialbusiness updates to IDX and our investors. Commencing with the fiscal year ending 31 December2015, we will need to comply with listing requirements and implement risk management and relatedpractices which will require that we incur substantial additional professional fees and internal coststo expand our accounting and finance functions and that we expend significant management efforts.We would also need to employ sufficient personnel with an appropriate level of accounting knowledge,experience, and training commensurate with our financial reporting requirements, and a segregationof duties in our finance and accounting functions. We have not had to comply with these types ofobligations in the past and they may place a significant strain on us. If we are not able to comply withthe listing requirements of IDX, or if we are unable to maintain proper and effective internal controls,and otherwise implement other relevant risk management and related practices, we could be requiredto incur additional costs, our business and financial condition and operating results could be harmedand we could be prevented from meeting our reporting obligations. Ineffective disclosure and internalcontrols and risk management and related practices also could cause our shareholders and potentialinvestors to lose confidence in our reported financial information, which would likely have a negativeeffect on the trading price of our Shares. In addition, investors relying upon any misinformation couldmake an uninformed investment decision, and we could be subject to sanctions or investigations bythe IDX, OJK, or other regulatory authorities.

Purchasers may be subject to limitations on minority shareholders rights.

The obligations under Indonesian law of the majority shareholders, commissioners and directors withrespect to minority shareholders may be more limited than those in other developed countries.Consequently, minority shareholders may not be able to protect their interests under currentIndonesian law to the same extent as in other developed countries. Principles of corporate law relatingto such matters as the validity of corporate procedures, the fiduciary duties of our management,commissioners, directors and Controlling Shareholders, and the rights of our minority shareholders are

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governed by Indonesian Company Law, BAPEPAM-LK regulations, OJK regulations and our Articlesof Association. Such principles of law may differ from those that would apply if we were incorporatedin a jurisdiction other than Indonesia. In particular, concepts relating to the fiduciary duties ofmanagement are untested in Indonesian courts. Derivative actions brought in connection with theactivities of directors and commissioners have almost never been brought on behalf of companies orbeen tested in Indonesian courts, and minority shareholders’ rights have only been defined since 1995and are unproven in practice. Even if conduct was actionable under Indonesian law, the absence ofjudicial precedent could make prosecution of such civil proceeding considerably more difficult.Accordingly, there can be no assurance that legal rights or remedies of minority shareholders will bethe same, or as extensive, as those available in other jurisdictions or sufficient to protect the interestsof minority shareholders.

Corporate governance standards in Indonesia may differ from those in certain other countries.

Corporate governance standards in Indonesia differ from those applicable in other jurisdictions insignificant ways, including the independence of the Board of Directors, the Board of Commissionersand the audit committee, as well as internal and external reporting standards. As a result of thesedifferences in corporate governance standards, the directors and commissioners of Indonesiancompanies may be more likely to have interests that conflict with the interests of minorityshareholders generally, which may result in them taking actions that are contrary to the interests ofshareholders.

There may be less company information available on Indonesian securities markets than onsecurities markets in developed countries.

There is a difference between the level of regulation and monitoring of the Indonesian securitiesmarkets and the activities of investors, brokers and other participants and that of certain developedeconomies. OJK and the stock exchanges are responsible for improving disclosure and otherregulatory standards for the Indonesian securities markets. OJK has issued regulations and guidelineson disclosure requirements, including the type of information that must be disclosed on ourCompany’s website, insider trading and other matters. There may still, however, be less publiclyavailable information about Indonesian companies than is regularly made available by publiccompanies in developed countries.

Indonesian law may operate differently from the laws of other jurisdictions with regards to theconvening of, and the right of shareholders to attend and vote at, general meetings of shareholders.

We are subject to Indonesian law and the continuing listing requirements of the IDX. In particular, theconvening and conduct of general meetings of its shareholders will continue to be governed byIndonesian law.

The procedure and notice periods in relation to the convening of general meetings of our shareholders,as well as the ability of our shareholders to attend and vote at such general meetings, may be differentfrom those of jurisdictions outside Indonesia. For instance, our shareholders who would be entitled toattend and vote at general meetings of shareholders are, by operation of Indonesian law, thoseshareholders appearing in our register of shareholders on the market day immediately preceding theday, or record date, on which the notice of general meeting is issued, regardless of whether suchshareholders may have disposed of their Shares following the record date and prior to the generalmeeting of the shareholders.

In addition, investors who have acquired their Shares after the record date (and before the day of thegeneral meeting) are not entitled to attend and vote at the general meeting. Accordingly, potentialinvestors should note that they may be subject to procedures and rights with regards to generalmeetings of our shareholders that are different from those to which they may be accustomed in otherjurisdictions.

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Purchasers may be required to complete their acquisition of the Offer Shares if the IndonesianOffering is required to proceed and complete despite the occurrence of a material adverse change,including in our business or financial condition.

Indonesian regulations permit the cancellation of the Indonesian Offering only in limited

circumstances. See “Plan of Distribution” for a discussion of these circumstances. If a material

adverse change in international or national monetary, financial, political or economic conditions or

certain force majeure events were to occur, or any material adverse change in matters including our

business or financial condition were to arise after we have obtained the OJK effectiveness of the

registration statement and prior to the completion of the Indonesian Offering and the listing of our

Shares, the Company may request permission from OJK to postpone or cancel the Indonesian Offering.

There can be no assurance that the Company will submit such request to OJK or that OJK will grant

the cancellation. As such, OJK may require the Indonesian Offering to proceed and be completed

pursuant to Indonesian regulations.

In this situation, investors who have been allocated Offer Shares may be required to complete their

acquisition of the Offer Shares even if such events limit their ability to sell the shares after the Global

Offering or cause the trading price of the shares after the Global Offering to be at prices significantly

below the Offer Price.

Purchasers’ rights to participate in any rights offerings by us could be limited, which would causedilution to a purchaser’s shareholding.

Under BAPEPAM-LK Rule No. IX.D.1 the attachment to the Decree of Chairman of BAPEPAM-LK

No. KEP-26/PM/2003, dated 17 July 2003, a publicly listed company must offer its shareholders who

are registered on the record date pre-emptive rights to subscribe and pay for a proportionate number

of Shares to maintain their existing ownership percentage prior to the issuance of any new Shares.

To the extent that we offer our shareholders rights to purchase or subscribe for Shares or otherwise

distribute Shares to our shareholders, our foreign shareholders may be unable to exercise such rights

for the Shares absent compliance with securities laws in the jurisdiction of that shareholder, such as

registration of the Shares with the Securities and Exchange Commission in the United States.

Whenever we make a rights or similar offering of Shares, we will evaluate the costs and potential

liabilities associated with, and our ability to comply with, non-Indonesian regulations as well as any

other factors we consider appropriate. However, we may choose not to comply with the securities laws

in certain jurisdictions and, if so, and if no exemption from registration or filing requirements are

available, then holders of the Shares in such jurisdictions would be unable to participate in rights or

similar offerings and would suffer dilution of their shareholdings. Consequently, we cannot assure

purchasers that they will be able to maintain their proportional equity interests in our Shares. Because

rights issues in Indonesia generally enable participants to purchase Shares at a large discount to the

recent trading price, the inability to participate could cause holders of the Shares material economic

harm.

Indonesian law contains provisions that could discourage a takeover of our Company.

Under the regulations of BAPEPAM-LK, if there is any change of control of an Indonesian equity

issuer or public company, the new controlling party must carry out a mandatory tender offer of the

remaining Shares (public Shares, not including Shares of the substantial shareholder and other

controlling shareholders, if any).

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Pursuant to BAPEPAM-LK Regulation No. IX.H.1, the attachment to the Decree of Chairman ofBAPEPAM-LK No. KEP-264/BL/2011, dated 31 May 2011, on the Acquisition of Publicly ListedCompany, an acquisition of more than 50% of the shares of a public company or acquisition of director indirect control of the management or policy of a public company will be deemed as an acquisitionof a public company and thus trigger a mandatory tender offer by the new controlling shareholder.

The new controlling shareholder will have to conduct a mandatory tender offer for all the other sharesin the public company, except for:

• shares owned by shareholders which conducted the acquisition in conjunction with the newcontrolling shareholders;

• shares owned by other parties which received an offer on the same terms and conditionswith the new controlling shareholder;

• shares owned by other parties which are conducting a tender offer at the same time on thesame public company’s shares;

• shares owned by the substantial shareholder; and

• shares owned by the other controlling shareholders in the public company.

Further, in order to ensure that the public continues to hold at least 20% of the equity of the equityissuer or public company, the rule requires the new controlling party to divest its shareholding in theequity issuer or public company to at least 300 persons within two years after completion of themandatory tender offer if, as the result of the mandatory tender offer, the new controlling party holdsmore than 80% of the equity in the equity issuer or public company’s total paid-up capital.

If, as a result of the takeover, the new controlling party already holds more than 80% of the equityissuer or public company’s total paid-up capital, it must still carry out a mandatory tender offer, eventhough it will later have to divest a portion of the Shares it acquires in the mandatory tender offer toat least 300 persons within two years after completion of the mandatory tender offer.

Although such takeover provisions are intended to protect the interests of shareholders by requiringany acquisitions of the Shares that may involve or threaten a change in control of our Company to alsobe extended to all shareholders on the same terms, these provisions may discourage or prevent suchtransactions from taking place at all. Some of our shareholders, which may include you, may thereforebe disadvantaged as a transaction of that kind might have allowed the sale of Shares at a price abovethe prevailing market price.

The projections we have provided to the IDX should not be relied upon.

As part of our listing application, we are required under IDX regulations to submit certain financialprojections to the IDX and have been advised that the IDX may publish such projections. The IDX hasinformed us that they do not consider the projections as a part of the prospectus that will be circulatedto investors for the purposes of the Indonesian Offering and that it will only make the projectionsavailable to the public upon the listing of our Shares, which is after investors in the Global Offeringhave made their investment decision. You should note that the projections that we have provided tothe IDX were prepared solely for the purpose of satisfying IDX requirements and do not form a partof this Offering Circular, which is the only document you should refer to in making your investmentdecision. Neither we, nor any of our affiliates, nor our or their respective directors, officers,employees or agents make any representation or warranty, express or implied, in relation to theaccuracy nor completeness of the information contained in the projections that we have provided tothe IDX and accept no responsibility, obligation or liability in relation to such information.

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The projections, which have been prepared by our management, necessarily are based upon estimates

and forecasts that are inherently subject to many factors including, but not limited to, business,

economic and competitive uncertainties and contingencies, many of which are beyond our control, and

assumptions with respect to future business decisions, which are subject to change. These factors and

assumptions include, among others, those set out in “Forward-Looking Statements”, and other risks

and uncertainties disclosed elsewhere in the Offering Circular. The projections also assume the

success of our business strategy, which is subject to uncertainties and contingencies beyond our

control. No assurance can be given that our strategy will be effective or that the anticipated benefits

from our strategy will be realised in the periods for which the projections have been prepared.

The projections were not prepared under IFAS or any other accounting standards or with a view

towards compliance with any published guidelines regarding forecasts or the preparation and

presentation of prospective financial information. The projections have also not been audited,

reviewed, examined or prepared with the advice of our auditors. The reports of our auditors included

in the Offering Circular relate only to our historical financial information and do not extend to the

projections and should not be read to do so.

You should also note that any views or terms contained in the projections that we have provided to

the IDX are preliminary only and are based on assumptions and factors prevailing as at the date when

we provided the projections to the IDX. The projections are therefore subject to change. However, we

undertake no obligation or responsibility and do not intend to update such projections for future

changes or events after the listing of our Shares. Furthermore, we do not intend to prepare or issue

to the public any future projections or earnings guidance except as required under relevant laws and

regulations.

For the reasons mentioned above, you should not rely in any way on any of our projections that are

made available to or by the IDX.

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EXCHANGE RATES AND EXCHANGE CONTROLS

Exchange Rates

Bank Indonesia is the sole issuer of the Rupiah and is responsible for maintaining its stability. Since1970, Indonesia has implemented three exchange rate systems: (i) a fixed rate between 1970 and 1978,(ii) a managed floating exchange rate system between 1978 and 1997 and (iii) a free-floating exchangerate system since 14 August 1997. Under the second system, Bank Indonesia maintained the stabilityof the Rupiah through a trading band policy, pursuant to which Bank Indonesia would enter the foreigncurrency market and buy or sell Rupiah, as required, when trading in the Rupiah exceeded bid andoffer prices announced by Bank Indonesia on a daily basis. On 14 August 1997, Bank Indonesiaterminated the trading band policy and permitted the exchange rate for the Rupiah to float without anannounced level at which it would intervene, which resulted in a substantial decrease in the value ofthe Rupiah relative to the U.S. dollar. Under the current system, the exchange rate of the Rupiah isdetermined by the market, reflecting the interaction of supply and demand in the market. BankIndonesia may take measures, however, to stabilise, maintain or increase the exchange rates.

The following table shows the exchange rate of Rupiah for U.S. dollars for the periods indicated. Noneof us, the Selling Shareholder, the International Selling Agents or the Joint Domestic LeadUnderwriters make any representations that the U.S. dollar amounts referred to in this OfferingCircular could have been or could be converted into Rupiah or vice versa at the rate indicated or anyother rate at all.

Period End(1) Rupiah Low(2) Rupiah High(2) Average(2)

(Rupiah per US$1.00)

Period:2008 10,950 9,051 12,400 9,6802009 9,400 9,293 12,065 10,3982010 8,991 8,888 9,413 9,0852011 9,068 8,460 9,185 8,7792012 9,670 8,892 9,707 9,3802013 12,189 9,634 12,270 10,4932014 12,440 11,271 12,900 11,878January 2015 12,625 12,444 12,732 12,579February 2015 12,863 12,609 12,887 12,750March 2015 13,084 12,932 13,237 13,067April 2015 12,937 12,838 13,043 12,948May 2015 13,211 12,993 13,229 13,141June 2015 13,332 13,196 13,367 13,313July 2015 13,481 13,304 13,481 13,375August 2015 14,027 13,492 14,128 13,782September 2015 14,657 14,081 14,728 14,396October 2015 13,639 13,288 14,709 13,796November 2015 (through 6 November

2015)13,550 13,461 13,682 13,578

Notes:

(1) For full years, the period end is determined based on the middle exchange rate announced by Bank Indonesia on the lastday of the year. For each month, the period end is determined based on the middle exchange rate announced by BankIndonesia on the last day of the month.

(2) For full years, the high and low amounts are determined, and the average shown is calculated, based on the middleexchange rate announced by Bank Indonesia on the last day of each month during the year indicated. For each month,the high and low amounts are determined, and the average shown is calculated, based on the daily middle exchange rateannounced by Bank Indonesia during the month indicated.

Source: Statistik Ekonomi dan Keuangan Indonesia (Indonesian Economic and Financial Statistics) published monthly byBank Indonesia and available on the website of Bank Indonesia (www.bi.go.id).

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Exchange Controls

Indonesia has limited exchange controls. The Rupiah has been, and in general is, freely convertiblewithin or from Indonesia. However, to maintain the stability of the Rupiah and to prevent theutilisation of the Rupiah for speculative purposes by non-residents, Bank Indonesia has introducedregulations to restrict the movement of Rupiah from banks within Indonesia to offshore banks, anoffshore branch of an Indonesian bank, or any investment denominated in Rupiah with foreign partiesand/or Indonesian parties domiciled or permanently residing outside of Indonesia, thereby limitingoffshore trading to existing sources of liquidity. In addition, Bank Indonesia has the authority torequest information and data concerning the foreign exchange activities of all persons and legalentities that are domiciled, or who plan to be domiciled, in Indonesia for at least one year.

Bank Indonesia regulations also require companies that have total assets or total annual gross revenuesof at least Rp100 billion to report to Bank Indonesia all data concerning their foreign currencyactivities, if the relevant transaction is not conducted through a domestic bank or domestic non-bankfinancial institution (for example, insurance companies, securities companies, finance companies orventure capital companies). However, if the transaction is conducted through a domestic bank and/ordomestic non-bank financial institution, the requirement to report to Bank Indonesia is imposedinstead on the relevant domestic bank or non-bank financial institution that carried out the transaction.The transactions that must be reported include receipt and payment of foreign currency through bankaccounts outside of Indonesia.

Foreign Exchange Transactions against Rupiah with Commercial Banks in Indonesia

Pursuant to the Bank Indonesia Regulation No. 16/16/PBI/2014 concerning Foreign ExchangeTransactions against Rupiah between Banks and Domestic Parties as lastly amended by PBI17/3/PBI/2015, as implemented by Bank Indonesia Circular Letter No. 16/14/DPM, dated 17September 2014, as lastly amended with Bank Indonesia Circular Letter No. 17/20/DPM, dated 28August 2015, any foreign exchange transaction against Rupiah between commercial banks inIndonesia and Indonesian citizens or non-commercial bank legal entities domiciled in Indonesia(“Domestic Customer”) must be based on a contract. Under this regulation, a foreign exchangetransaction is defined as a sale/purchase transaction of foreign currencies against Rupiah in the formof (i) spot transactions, or (ii) standard (plain vanilla) foreign exchange derivative transactions againstRupiah in the form of forwards, swaps, options, and other equivalent transactions. In case (i) thepurchase of foreign currency in the form of a spot transaction is in an amount exceeding US$25,000per month (or its equivalent), (ii) the purchase of foreign currency in the form of derivative transactionis in an amount exceeding US$100,000 per month (or its equivalent), or (iii) the sale of foreigncurrencies against Rupiah through forward or option transactions exceeds US$1,000,000.00 (or itsequivalent) per transaction per Domestic Customer, there must be an underlying transaction.

An underlying transaction is defined as an activity underlying the purchase or sale of foreigncurrencies against Rupiah, including the trade of goods and services (including income and expenseestimation), and/or investment in the form of direct investment, portfolio investment, loans, capital,and other investments, both domestic and overseas, excluding placement of funds in commercial banksin Indonesia (among others in the form of savings, demand deposits, time deposits, and negotiablecertificates of deposit) and transferring funds by a funds transfer company. However, the requirementfor having an underlying transaction is not applicable for settlements of initial derivative transactionsperformed through: (i) a roll over (provided that the roll over shall not exceed with the term of theunderlying transaction), (ii) early termination, or (iii) an unwinding transaction. Further, the amountof foreign currencies that will be purchased or sold must be at the most equal to the nominal valueof the underlying transaction and the term of derivative transaction may not exceed the term of theunderlying transaction.

Any Domestic Customer conducting a foreign exchange transaction against Rupiah exceeding theabove threshold will be required to submit certain supporting documents to the transacting bank,including among others, the relevant underlying transaction document and a duly stamped statement

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or authenticated written statement confirming (i) that the underlying transaction document is valid, (ii)that the purchase or sale of foreign currencies against Rupiah shall not exceed the nominal value ofunderlying transactions in banking system in Indonesia, and (iii) in case the underlying transactiondocument is only an estimation, the total needs, purpose of utilisation, and date of foreign currenciesutilisation (except for the sale of foreign currencies against Rupiah through forward or optiontransactions).

For the purchase of foreign currency in the form of a spot transaction not exceeding US$25,000 anda derivative transaction not exceeding US$100,000, such Domestic Customer must declare in a dulystamped letter or authenticated written statement that its aggregate foreign currency purchases do notexceed each threshold (as applicable) per month in the Indonesian banking system.

Similar provisions apply to foreign parties pursuant to Bank Indonesia Regulation No. 16/17/PBI/2014concerning Foreign Exchange Transactions against Rupiah between Banks and Foreign Parties aslastly amended by Bank Indonesia Regulation No. 17/14/PBI/2015, as implemented by Bank IndonesiaCircular Letter No. 16/15/DPM, dated 17 September 2014, as lastly amended by Bank IndonesiaCircular Letter No. 17/21/DPM, dated 28 August 2015. Key differences include that (i) the definitionof underlying transaction does not include utilisation of Bank Indonesia certificates for derivativetransactions, and (ii) the threshold of US$1,000,000 (or its equivalent) applies for purchasingderivative transactions and selling derivative transactions, per transaction or per outstanding positionof transaction.

Indonesian Law on Currency

On 28 June 2011, the Indonesian House of Representatives passed Law No. 7 of 2011 (the “CurrencyLaw”) concerning the use of Rupiah. Further, on 31 March 2015, Bank Indonesia issued PBI17/3/PBI/2015 as the implementing regulation to the Currency Law and enacted Bank IndonesiaCircular Letter No. 17/11/DKSP on 1 June 2015 as the implementation guideline. Article 21 of theCurrency Law and Article 2 of PBI 17/3/PBI/2015 require the use of Rupiah in transaction payments,monetary settlements and other financial transactions within Indonesia. PBI 17/3/PBI/2015 furtherclarifies that this requirement applies to both cash and non-cash transactions (for non-cashtransactions, the regulation is effective from 1 July 2015). However, there are a number of exceptionsto this requirement, including:

(1) transactions related to the implementation of the state budget;

(2) receipt or grant of offshore grants;

(3) international trading (such as export-import of goods and services);

(4) foreign currency bank deposits;

(5) international financing; and

(6) transactions denominated in foreign currency conducted based on prevailing laws andregulations (such as any business denominated in foreign currency conducted by banks andtransactions in the primary and secondary market of securities issued by the Governmentdenominated in foreign currency).

The Currency Law and PBI 17/3/PBI/2015 prohibit the rejection of Rupiah as a means of payment tosettle obligations or in other financial transactions within Indonesia, unless there is uncertaintyregarding the authenticity of the Rupiah bills offered, or the payment or settlement of obligations ina foreign currency has been agreed to in writing. Article 10 of PBI 17/3/PBI/2015 further clarifies thatthe exemption for written agreements is only applicable to transactions, which are listed above, or fortransactions related to a strategic infrastructure project approved by Bank Indonesia as defined in PBI16/21/2014. However, Frequently Asked Questions to PBI 17/3/PBI/2015 issued by Bank Indonesia

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further clarifies that any written agreements covering other transactions that were executed prior to

1 July 2015 will continue to be valid until their expiry date, provided that such agreements were in

respect of non-cash payments. Any amendment and/or extension to such agreements must comply with

PBI 17/3/PBI/2015.

According to Bank Indonesia Circular Letter No. 17/11/DKSP, a business operator in Indonesia must

quote the price of goods and/or services in Rupiah and is prohibited from making dual quotations

where the price of goods and/or services is listed both in Rupiah and a foreign currency. The

restriction applies to, among others, (i) price tags; (ii) service fees, such as agent fees for the sale and

purchase of property, tourism services fees or consultancy services fees; (iii) leasing fees, such as

apartment rent, housing rent, office rent, land leases, warehouse leases or car leases; (iv) tariffs, such

as loading/unloading tariffs for cargo at seaports or airplane ticket tariffs; (v) price lists; (vi)

contracts, such as clauses for pricing or fees; (vii) documents of offer, order, invoice, such as the price

clause in an invoice, purchase order or delivery order; and (viii) payment evidence, such as the price

listed in a receipt.

Further, CL 17/11/2015 stipulates that conditional exemptions may apply to certain infrastructure

projects, among others, (i) transportation infrastructure; (ii) road infrastructure; (iii) water

infrastructure; (iv) drinking water infrastructure; (v) sanitation infrastructure; (vi) information and

technology infrastructure; (vii) electricity infrastructure; and (viii) natural oil and gas infrastructure.

These exemptions apply if: (a) the project has been declared by the central or regional government as

a strategic infrastructure project, as evidenced by a formal confirmation letter from the relevant

ministry/institution with regards to the project owner; and (b) an exemption approval has been

obtained from Bank Indonesia.

Any non-compliance with regard to cash transactions is punishable by up to one year of imprisonment

and a fine of up to 200 million Rupiah and any non-compliance for non-cash transactions will be

subject to administrative sanctions in the form of a written warning, a fine up to 1 billion Rupiah

and/or a restriction on undertaking further payment activities. Non-compliance with the Currency Law

is punishable by up to one year of imprisonment and a fine of up to 200 million Rupiah.

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DIVIDEND POLICY

Statements contained in this “Dividend Policy” section that are not historical facts are

forward-looking statements. Such statements are subject to certain risks and uncertainties which could

cause actual results to differ materially from those which may be forecasted and projected. Under no

circumstances should the inclusion of such information herein be regarded as a representation,

warranty, or prediction with respect to the accuracy of the underlying assumptions by us, the Joint

International Selling Agents or the Joint Domestic Lead Underwriters, or any other person. Investors

are cautioned not to place undue reliance on these forward-looking statements that speak only as at

the date hereof. See “Forward-Looking Statements”.

Under Indonesian law, specifically the Company Law, we may declare dividends. Following the

Global Offering, our Company will pay dividends, subject to our financial performance and financial

position, of not more than 30% of our net income (before other comprehensive income) each year,

beginning in 2016. The payment of dividends in each financial year is also subject to the provisions

of our Articles of Association, and shareholder approval at the general meeting of shareholders which

shall take into consideration the reasonableness of such payment and the interests of the Company. The

payment of dividends can only be conducted if the Company has positive retained earnings. For

further details, see “Share Capital � Dividends”.

Interim dividends may be distributed prior to the end of each financial year to the extent permitted

by our Articles of Association, and provided that such distribution shall not cause our net assets to be

less than our paid up capital and statutory reserve. The distribution of interim dividends shall be

determined by our Board of Directors after obtaining prior approval from our Board of

Commissioners. If we incur losses after the end of the relevant financial year, the shareholders must

return the distributed interim dividends to us. In such circumstances, our Board of Commissioners and

Board of Directors shall be jointly liable for the loss if any shareholder fails to return such interim

dividends.

The declaration, amount and payment of future dividends on the Shares, if any, will depend on several

factors, including:

• our retained earnings, operating and financial results, financial conditions, liquidity

condition, future business prospects (including capital expenditure and acquisitions), cash

requirement, business opportunities;

• the payment by our subsidiaries of cash dividends to us; and

• any other factors considered to be relevant by our Board of Directors.

There are no restrictions by any third party on the payment of dividends by us to our shareholders.

To the extent that a decision is made to pay dividends, such payments shall be declared and paid in

Rupiah to all shareholders listed on the recording date. Holders of our Shares on the applicable record

dates will be entitled to the full amount of dividends approved, subject to deductions of Indonesian

income tax and withholding tax, if any. Our Board of Directors may change its dividend policy at any

time, subject to the approval of such changes by shareholders at a general meeting of shareholders.

For further details, see “Share Capital — Dividends”.

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All of our issued and paid up Shares, including the Offer Shares offered in the Global Offering, afford

equal rights to our shareholders, including the right to receive dividends.

Dividends received by a Non-Indonesian Holder of Shares will be subject to a 20% Indonesian

withholding tax (which rate may be reduced for a Non-Indonesian Holder of Shares whose country has

entered into a double taxation treaty with Indonesia). Indonesia has concluded double taxation treaties

with a number of countries including Algeria, Australia, Austria, Bangladesh, Belgium, Brunei

Darussalam, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, DPR of Korea, Egypt,

Finland, France, Germany, Hong Kong, Hungary, India, Iran, Italy, Japan, Jordan, Kuwait,

Luxembourg, Malaysia, Mexico, Mongolia, Morocco, the Netherlands, New Zealand, Norway,

Pakistan, Papua New Guinea, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia

(only for air transportation), Seychelles, Singapore, Slovakia, South Africa, South Korea, Spain, Sri

Lanka, Suriname Sudan, Sweden, Switzerland, Syria, Taiwan, Thailand, Tunisia, Turkey, Ukraine,

United Arab Emirates, the United Kingdom, the United States of America, Uzbekistan, Venezuela and

Vietnam. The tax on dividends is different for Indonesian holder of Shares (which is relevant in the

case where an individual change status from a non-Indonesian tax resident to an Indonesia tax resident

while holding the shares). Indonesian individual tax resident receiving such dividend is taxed with a

10% final income tax. For the definition of a Non-Indonesian Holder and further information relating

to Indonesian taxation, see “Taxation—Indonesian Taxation.”

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USE OF PROCEEDS

The net proceeds we will receive from the Primary Offering of the Primary Shares, after deductingunderwriting fees and commissions and other expenses, are expected to be approximately Rp794billion (US$59.6 million).

We intend to use the proceeds in the following manner:

• Approximately 27% is intended to be used for acquisition of trademarks or other assets, or forinvestment in companies in similar industries to support our inorganic growth;

� We consistently look into investment opportunities meeting our investment criteria which,among other things, include market segment, growth potential and investment return. Wehave not identified any specific acquisition target at this stage.

• Approximately 50% is intended to be used for capital expenditure to support our organic growth;and

� We intend to use these proceeds to increase the production capacity of our personal care andbeverages business divisions, and to expand and improve DLS’s distribution network byadding new DLS owned branches and purchasing operating assets such as vehicles andoffice equipment for DLS. We will allocate these proceeds based on the demand of eachbusiness division, the potential impact on our plants’ production capacity and theavailability of strategic distribution points for DLS;

• Approximately 23% is intended to be used as working capital.

� We will use these proceeds to meet operating requirements of our plants and ourrepresentative office, such as purchase of raw materials and payment of salaries and rentals.

The expenses of the Primary Offering, expressed as a percentage of the gross proceeds of the PrimaryOffering, are expected as follows:

• underwriting, selling and management fees amounting to approximately 2.50%;

• incentive fees amounting to approximately 1.00%;

• supporting institutional and professional fees, comprising legal consultant fees, publicaccountant fees, appraisal fees, notary fees and securities administration bureau fees,amounting to approximately 2.86%;

• capital market supporting agency fees, including the Securities Administration Bureauservice fees, amounting to approximately 0.02%;

• financial advisory fees, amounting to approximately 0.42%; and

• advertisement and miscellaneous fees, including listing fees and Indonesian CentralSecurities Depositary (PT Kustodian Sentral Efek Indonesia, or “KSEI”) fees, amounting toapproximately 1.79%.

We will not receive any proceeds from the sale of the Placement Shares by the Selling Shareholder.

In accordance with IDX Rule No. I-E, Attachment to the Decree of Board of Directors of IDX No.Kep-306/BEJ/07-2004 dated 19 July 2004 regarding the Obligation to Submit Information andBAPEPAM-LK Rule No. X.K.4, which is attached to Decree of the Chairman of BAPEPAM-LK No.Kep-27/PM/2003 dated 17 July 2003 regarding Report on the Realisation of the Use of IPO Proceeds,

— 49 —

we will report the realisation of the use of proceeds from the Global Offering every three months to

IDX and OJK and at annual general meetings of shareholders. If any changes to the use of proceeds

are proposed, we will need to explain the proposed changes to OJK and we must also obtain our

shareholders’ approval for such changes at a general meeting of shareholders.

If we conduct a transaction which utilises the proceeds from the Global Offering and which is deemed

to be a material transaction, an affiliated transaction or a conflict-of-interest transaction, we must

comply with BAPEPAM-LK Rule No. IX.E.1 on Affiliated Transaction and Conflict of Interest

Transaction, which is attached to the Decree of the Chairman of BAPEPAM-LK No.

KEP-412/BL/2009, dated 25 November 2009, and also BAPEPAM-LK Rule No. IX.E.2 on Material

Transaction, which is attached to the Decree of the Chairman BAPEPAM-LK No. KEP-614/BL/2011,

dated 28 November 2011.

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CAPITALISATION AND INDEBTEDNESS

The following table shows our capitalisation (including current maturities of long-term loans) as

adjusted to give effect to the Primary Offering. You should read this table in conjunction with our

consolidated financial statements and related notes included elsewhere in this Offering Circular and

the sections in this Offering Circular entitled “Management’s Discussion and Analysis of Financial

Condition and Results of Operations” and “Use of Proceeds”.

As at 30 June 2015

Actual As Adjusted(1)

(Rp millions) (US$ 000) (Rp millions) (US$ 000)

Cash and cash equivalents 48,939 3,671 48,939 3,671

Long-term indebtedness (includingcurrent portion) 163,611 12,272 163,611 12,272

Equity

Share capital 120,000 9,001 142,857 10,715

Additional paid-in capital (66,377) (4,979) 704,727 52,860

Differences in value of transactions withnon-controlling interest (1,966) (147) (1,966) (147)

Other comprehensive income 434,956 32,625 434,956 32,625

Retained earnings 339,918 25,496 339,918 25,496

Non-controlling interest 1,290 97 1,290 97

Total equity — net 827,821 62,093 1,621,782 121,646

Total capitalisation(2) 991,432 74,365 1,785,393 133,918

Notes:

(1) Adjusted to give effect to the Primary Offering (after deduction of underwriting fees and commissions and other

estimated transaction expenses).

(2) Total capitalisation equals long-term indebtedness plus total equity — net.

Except as disclosed in this Offering Circular, there have been no material adverse changes to our

capitalisation since 30 June 2015.

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DILUTION

Dilution created by the Global Offering represents the amount by which the Offering Price paid by the

purchasers of the Shares in the Global Offering exceeds the book value of net assets per Share after

the Global Offering. We have determined the book value of net assets per Share by subtracting our

total liabilities from the total book value of our assets and dividing the difference by the number of

Shares outstanding as at 30 June 2015.

As at 30 June 2015, our net book value was Rp689 per Share, based on 1.2 billion issued and

outstanding Shares as at that date with par value per Share of Rp100 (after giving effect on the change

of par value of the Shares in July 2015). After giving effect to the sale of the Offer Shares at the

Offering Price of Rp3,800 per Offer Share and after deduction of estimated selling, underwriting and

management commissions and estimated expenses related to the Global Offering payable by our

Company, but without taking into account the sale of any Placement Shares in the Private Placement,

our net book value per Share as at 30 June 2015 would increase to Rp1,350 per Share. This represents

an immediate increase in net book value per Share of Rp662 to our existing shareholders and an

immediate dilution of Rp1,134 per Share to purchasers of Offer Shares.

The following table illustrates dilution on a per share basis based on the Offering Price of Rp3,800

per Offer Share:

Offering Price per Offer Share Rp3,800

Net book value per Share as at 30 June 2015 Rp689

Pro forma net book value per Share as at 30 June 2015, assuming that the PrimaryOffering had taken effect as at that date and without taking into account the sale ofany Placement Shares in the Private Placement Rp1,350

Increase in net book value per Share attributable to the sale of Shares in the PrimaryOffering Rp662

Dilution per Share to new investors of Shares in the Primary Offering Rp1,134

Pro forma net book value per Share as at 30 June 2015, assuming that the PrimaryOffering had taken effect as at that date and taking into account the sale of57,142,900 Placement Shares in the Private Placement Rp1,531

Increase in net book value per Share attributable to the sale of Shares in the PrimaryOffering and Private Placement Rp843

Dilution per Share to new investors of Shares in the Primary Offering and PrivatePlacement Rp1,237

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SELECTED FINANCIAL INFORMATION

You should read our selected consolidated financial information and other data presented below inconjunction with our consolidated financial statements and the related notes to the consolidatedfinancial statements included elsewhere in this Offering Circular. You should also read the section ofthis Offering Circular entitled “Management’s Discussion and Analysis of Financial Condition andResults of Operations”.

The following tables present the Company’s selected consolidated financial information as at the datesor for each of the periods indicated. The selected consolidated statements of comprehensive incomeand cash flows for the years ended 31 December 2012, 2013 and 2014 and for the six months ended30 June 2015, and the selected consolidated statements of financial position data as at 31 December2012, 2013 and 2014 and as at 30 June 2015 in the tables below have been derived from the auditedconsolidated financial statements of the Company included elsewhere in this Offering Circular. Theselected consolidated statements of comprehensive income and cash flows for the six months ended30 June 2014 and the selected consolidated statements of financial position data as at 30 June 2014in the tables below have been derived from the unaudited consolidated financial statements of theCompany included elsewhere in this Offering Circular. Results for the interim periods are notnecessarily indicative of the results for the full year.

Our Company was incorporated on 8 February 1999. Our Group was formed in the second half of 2014pursuant to a group restructuring exercise. As part of the group restructuring exercise, our Companybecame the holding company of our various subsidiaries and recorded such transaction using thepooling-of-interest method in accordance with Indonesia FAS, and restated its financial statements asat and for the year ended 31 December 2012 and 2013 as if such subsidiaries have been acquired asat 1 January 2012. For more details of the group restructuring, see “History, Corporate Restructuringand Group Structure.”

The audited consolidated financial statements of the Company as at and for the years ended 31December 2012, 2013 and 2014, and as at and for the six months ended 30 June 2015, includedelsewhere in this Offering Circular, have been audited by Kosasih, Nurdiyaman, Tjahjo & Rekan (amember firm of Crowe Horwath International), independent public accountants, in accordance withauditing standards established by the IICPA, as stated in their audit report appearing in this OfferingCircular.

The unaudited consolidated financial statements of the Company as at and for the six months ended30 June 2014, included elsewhere in this Offering Circular, have been reviewed by Kosasih,Nurdiyaman, Tjahjo & Rekan (a member firm of Crowe Horwath International), independent publicaccountants, in accordance with SRE 2410 “Standard on Review Engagement” established by theIICPA, as stated in their review report appearing in this Offering Circular (presented combined withthe audit report mentioned above). A review conducted in accordance with SRE 2410 “Standard onReview Engagement” established by the IICPA is substantially less in scope than an audit conductedin accordance with auditing standards established by the IICPA and, as stated in their review reportappearing in this Offering Circular (presented combined with the audit report mentioned above),Kosasih, Nurdiyaman, Tjahjo & Rekan (a member firm of Crowe Horwath International), independentpublic accountants, did not audit and do not express any opinion on such unaudited consolidatedfinancial statements included in this Offering Circular.

Our Financial Statements are reported in Rupiah, and our functional currency is the Rupiah. We haveprepared and presented our consolidated financial statements in accordance with Indonesian FAS,which differ in certain material respects from IFRS. For a description of certain significant differencesbetween Indonesian FAS and IFRS, see “Summary of Certain Principal Differences BetweenIndonesian FAS and IFRS”.

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Consolidated Statements of Financial Position

As at 31 December As at 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

ASSETS

CURRENT ASSETS

Cash and cash equivalents 9,465 62,869 44,354 48,939 3,671

Trade receivables

Third parties — net of allowance forimpairment losses of tradereceivables of Rp1,294 million,Rp8,930 million and Rp8,760million as at 31 December 2012,2013 and 2014, and Rp9,112million as at 30 June 2015 248,117 301,937 445,839 752,277 56,426

Related parties 33,750 — — — —

Other receivables 1,878 4,470 6,793 5,817 436

Inventories — net of allowance forimpairment and obsolescence ofinventories of Rp13,565 million,Rp6,550 million and Rp3,400million as at 31 December 2012,2013 and 2014, and Rp2,717million as at 30 June 2015 193,649 217,693 329,937 289,712 21,731

Prepaid taxes — 66 821 468 35

Advances 23,198 44,311 42,543 16,107 1,208

Current portion of prepaid expenses 3,230 8,477 18,347 20,048 1,504

TOTAL CURRENT ASSETS 513,287 639,823 888,634 1,133,368 85,011

NON-CURRENT ASSETS

Restricted deposits 11,688 10,453 31,524 38,604 2,896

Due from related parties 4,221 — — — —

Investment in Associates 2,996 44,550 42,925 37,816 2,836

Deferred charges — — 4,820 14,309 1,073

Fixed assets — net of accumulateddepreciation of Rp207,191 million,Rp272,127 million and Rp310,858million as at 31 December 2012, 2013and 2014, and Rp323,428 million asat 30 June 2015 444,097 618,304 870,052 958,829 71,919

Deferred tax assets 8,186 8,603 6,395 6,649 499

Estimated claim for tax refund — — 9,445 9,445 708

Prepaid expenses — net of currentportion 995 1,383 6,341 9,629 722

Other non-current assets 1,517 1,864 3,245 6,132 460

Total Non-current Assets 473,700 685,157 974,747 1,081,413 81,114

TOTAL ASSETS 986,987 1,324,980 1,863,381 2,214,781 166,125

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As at 31 December As at 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

LIABILITIES AND EQUITY-NET

CURRENT LIABILITIES

Short-term bank loans 253,475 265,201 546,504 586,205 43,970

Trade payables

Third parties 228,518 297,788 268,968 334,617 25,099

Related parties 44,987 120,611 157,227 114,851 8,615

Dividend payables 8,319 7,874 — — —

Other payables — 7,452 8,481 7,221 542

Accrued expenses 6,946 29,445 50,048 85,722 6,430

Taxes payable 5,895 9,419 16,083 42,674 3,201

Advances from customers 464 2,065 1,278 907 68

Current portion of long-term liabilities

Bank loans 43,730 31,223 30,656 46,238 3,468

Consumer financing payables 6,847 5,837 2,343 1,229 92

Finance lease payables — 6,229 8,704 8,355 627

Total Current Liabilities 599,181 783,144 1,090,292 1,228,019 92,111

NON-CURRENT LIABILITIES

Due to related parties 8,088 11,117 — — —

Liabilities for employees’ benefits 17,884 15,821 39,972 45,588 3,419

Deferred tax liabilities — — 294 5,563 417

Long-term liabilities — net of currentportion

Bank loans 64,074 41,728 62,228 103,901 7,793

Consumer financing payables 4,916 2,083 1,743 1,379 103

Finance lease payables — 9,895 6,468 2,510 188

Total Non-Current Liabilities 94,962 80,644 110,705 158,941 11,922

TOTAL LIABILITIES 694,143 863,788 1,200,997 1,386,960 104,032

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As at 31 December As at 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

EQUITY

Equity Attributable to Owners of theParent Company

Share capital — par value Rp1 millionper shares

Authorised — 480,000 shares Issued

Issued and fully paid capital — 120,000shares as at 31 December 2014 and30 June 2015 and 65,000 shares as at31 December 2012 and 2013 65,000 65,000 120,000 120,000 9,001

Capital pro forma arising fromrestructuring transactions of entitiesunder common control (10,720) (31,361) — — —

Additional paid-in capital — — (66,377) (66,377) (4,979)

Difference in value of transactions ofnon-controlling interest — — (1,966) (1,966) (147)

Other comprehensive income 154,812 296,310 409,992 434,956 32,625

Retained earnings

Unappropriated 82,831 130,606 199,453 315,918 23,696

Appropriated — — — 24,000 1,800

Sub Total 291,923 460,555 661,102 826,531 61,996

Non-controlling interest 921 637 1,282 1,290 97

TOTAL EQUITY — NET 292,844 461,192 662,384 827,821 62,093

TOTAL LIABILITIES AND EQUITY— NET 986,987 1,324,980 1,863,381 2,214,781 166,125

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Consolidated Statements of Comprehensive Income

Year ended 31 December Six months ended 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

SALES 1,692,137 2,267,314 3,339,386 1,746,627 131,010

COST OF SALES 1,020,631 1,355,230 2,200,936 1,012,231 75,925

GROSS PROFIT 671,506 912,084 1,138,450 734,396 55,085

Selling expenses (477,399) (614,596) (728,308) (375,249) (28,146)

General and administrative expenses (120,268) (178,544) (223,816) (128,107) (9,609)

Interest expenses (31,141) (36,441) (60,503) (42,853) (3,214)

Loss on foreign exchange — net (3,175) (11,751) (4,293) (5,145) (386)

Bank administration expenses (1,877) (2,116) (3,143) (1,770) (133)

Share of gain (loss) in Associates (55) (446) 2,118 (5,109) (383)

Gain on sale of fixed assets 8 735 2,092 1,347 101

Gain on sale of scrap 1,048 4,342 1,595 999 75

Interest Income 63 634 1,217 977 73

Others — net 448 3,592 12,119 7,053 529

INCOME BEFORE INCOME TAXEXPENSES — NET 39,158 77,493 137,528 186,539 13,992

INCOME TAX EXPENSES — NET (12,900) (19,037) (34.273) (45,203) (3,391)

CURRENT YEAR/PERIOD INCOMEBEFORE EFFECT OF PROFORMA ADJUSTMENT 26,258 58,456 103,255 141,336 10,601

Effect of pro forma adjustment oncurrent year/period income 5,286 (7,301) 905 — —

CURRENT YEAR/PERIOD INCOME 31,544 51,155 104,160 141,336 10,601

OTHER COMPREHENSIVEINCOME 177,885 151,122 97,405 24,101 1,808

COMPREHENSIVE INCOMEBEFORE EFFECT OF PROFORMA ADJUSTMENT ONOTHER COMPREHENSIVEINCOME 209,429 202,277 201,565 165,437 12,409

Effect of pro forma adjustment onother comprehensive income (23,329) (6,662) 2,985 — —

COMPREHENSIVE INCOME 186,100 195,615 204,550 165,437 12,409

Current year/period income attributableto: Owners of the Parent Company 31,460 50,893 103,995 141,330 10,601

Non-controlling interest 84 262 165 6 0.5

CURRENT YEAR/PERIOD INCOME 31,544 51,155 104,160 141,336 10,601

Total comprehensive incomeattributable to:

Owners of the Parent Company 185,393 195,123 204,460 165,429 12,408

Non-controlling interest 707 492 90 8 0.6

COMPREHENSIVE INCOME 186,100 195,615 204,550 165,437 12,409

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Consolidated Statements of Cash Flows

Year ended 31 December Six months ended 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

CASH FLOWS FROM OPERATINGACTIVITIES

Receipt from customers 1,657,800 2,278,421 3,195,148 1,441,557 108,128

Interest income 63 594 1,217 977 73

Payment to suppliers (937,680) (1,196,987) (2,155,310) (869,337) (65,207)

Payment for selling, general andadministrative expenses, and otheroperating activities (497,522) (653,983) (733,194) (338,207) (25,368)

Payment to employees (144,663) (191,502) (319,196) (173,777) (13,035)

Payment for interest (31,140) (36,337) (60,512) (42,910) (3,219)

Payment for taxes (15,969) (16,426) (20,299) (13,381) (1,004)

Net Cash Flows Provided by (Usedfor) Operating Activities 30,889 183,780 (92,146) 4,922 369

CASH FLOWS FROM INVESTINGACTIVITIES

Acquisition of fixed assets (75,782) (58,516) (181,767) (80,749) (6,057)

Disbursement (placement) of restricteddeposits (10,897) 1,235 (21,071) (7,080) (531)

Acquisition of Subsidiaries — — (19,311) — —

Addition of other non-current assets — (387) (175) (2,474) (186)

Liquidation of Associates — — 3,743 — —

Sale of fixed assets 34 1,260 2,963 1,887 142

Investment in Associates — (42,000) — — —

Net Cash Flows Used for InvestingActivities (86,645) (98,408) (215,618) (88,416) (6,632)

CASH FLOWS FROM FINANCINGACTIVITIES

Receipt from short-term bank loans 281,902 327,700 977,878 751,672 56,381

Additional of share capital — — 55,000 — —

Receipt from long-term bank loans 40,000 8,875 54,452 75,000 5,626

Payment of short-term bank loans (216,541) (315,974) (696,575) (711,971) (53,403)

Payment of dividend (3,882) (6,295) (42,805) — —

Payment of long-term bank loans (33,600) (43,730) (34,519) (17,745) (1,331)

Receipt (payment) from due fromrelated parties (2,086) 4,197 (11,589) (2,995) (225)

Payment of finance lease payables — (2,535) (7,143) (4,360) (327)

Payment of consumer financingpayables (7,501) (7,954) (6,179) (1,853) (139)

Additional of Subsidiary’s share capital — 1,070 — — —

Net Cash Flows Provided by (Usedfor) Financing Activities 58,292 (34,646) 288,520 87,748 6,582

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Year ended 31 December Six months ended 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

NET INCREASE (DECREASE) CASHAND CASH EQUIVALENTS 2,536 50,726 (19,244) 4,254 319

EFFECT OF CHANGES INEXCHANGE RATE ON CASH ANDCASH EQUIVALENTS — 311 729 331 25

CASH AND CASH EQUIVALENT OFSUBSIDIARIES WHEN ACQUIRED — 2,367 — — —

CASH AND CASH EQUIVALENTSAT BEGINNING OF THEYEAR/PERIOD 6,929 9,465 62,869 44,354 3,327

CASH AND CASH EQUIVALENTSAT END OF THE YEAR/PERIOD 9,465 62,869 44,354 48,939 3,671

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS

The following management’s discussion and analysis of financial condition and results of operationsshould be read in conjunction with the selected consolidated financial information and other data, theaudited consolidated financial statements and related notes to our consolidated financial statementsas at and for the years ended 31 December 2012, 2013 and 2014 and the six months ended 30 June2015. Results for the interim periods are not necessarily indicative of results for the full year. Ourconsolidated financial statements have been audited by Kosasih, Nurdiyaman, Tjahjo & Rekan (amember firm of Crowe Horwath International).

The discussion in this section contains forward-looking statements and reflects our current view withrespect to future events and financial performance. Actual results may differ materially from thoseanticipated in these forward-looking statements as a result of certain factors, including but not limitedto those set forth under “Forward-Looking Statements”, “Risk Factors” and elsewhere in thisOffering Circular.

Overview

We are one of the leading FMCG businesses in Indonesia, with a diverse portfolio of leading personalcare brands complemented by a growing portfolio of food and beverage brands. We have establishedleading positions in the personal care segment in Indonesia with a number of well-known andorganically developed brands targeted primarily at consumers in the middle to higher income brackets.According to The Nielsen Company Indonesia, we were the largest producer of hair vitamin, intimatehygiene and 2-in-1 cleansing products in Indonesia in terms of total retail sales value in the year ended31 December 2014 with our “Ellips” hair vitamin, “Resik-V” intimate hygiene and “Ovale” 2-in-1cleanser commanding market shares of 77.0%, 49.2% and 50.2%, respectively. We also sell a broadrange of beverage and food products that appeal to middle to higher income and lower and middleincome Indonesian consumers respectively. In July 2013, the establishment of PT MKI, a joint ventureamong our Company, Mr. Harris Sanusi and Morinaga & Co. Ltd, a Japanese food manufacturer,extended our target market of food products to higher income Indonesian consumers. We place greatemphasis on the innovation and development of our products and seek to differentiate ourselves fromlarge FMCG competitors via our product range, brand equity in selective market segments andextensive nationwide distribution network. We believe part of our success is attributable to our abilityto identify segments of the Indonesian market with strong growth potential based on ourclose-to-ground knowledge of this market and our end-to-end capabilities, from product developmentto manufacturing and distribution.

Our business divisions comprise the following:

Personal Care: Our personal care division, which commenced operations in 1999, accounted for51.1%, 51.7%, 41.6% and 50.2% of our sales in 2012, 2013, 2014 and the six months ended 30 June2015 respectively. We offer a wide range of personal care products including hair care, bath andshower, skin care, and baby and child-specific products under various brands to cater to differentmarket segments. Our major personal care brands include “Ellips”, “Resik-V” and “Ovale”. Goingforward we will leverage our local knowledge, culture of innovation and end-to-end capabilities totarget additional personal care segments.

Beverages: Our beverages division, which commenced operations in 2004, accounted for 44.4%,39.9%, 35.0% and 36.2% of our sales in 2012, 2013, 2014 and the six months ended 30 June 2015respectively. We produce a variety of beverages including remedy drinks, energy drinks, herbal drinksand juice drinks under various brands. Our major beverage brands include “Cap Kaki Tiga”, “Panda”and “Panther”.

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Food: Our food division, which commenced operations in 1997, accounted for 4.3%, 7.8%, 23.2% and13.4% of our sales in 2012, 2013, 2014 and the six months ended 30 June 2015 respectively. Prior toNovember 2013, we were one of the distributors of food products manufactured by our affiliate, PTKSI, through DLS. In October 2013, DLS became the sole distributor of PT MKI, a joint ventureamong our Company, Mr. Harris Sanusi and Morinaga & Co, Ltd. established in July 2013, and intowhich substantially all of PT KSI’s food business was transferred. All of the food products PT MKImanufactures are exclusively distributed and sold to consumers via DLS. The food brands wedistribute are currently divided into the Kino Candy, Snackit and Segar Sari ranges, comprising avariety of confectioneries, snacks and powdered drinks. Going forward we expect our range of foodproducts to expand and target more premium consumers as we leverage the technology, expertise andbrands of our joint venture partner.

Pharmaceuticals: Our pharmaceutical division, accounted for 0.1%, 0.6%, 0.2% and 0.1% of our salesin 2012, 2013, 2014 and the six months ended 30 June 2015. Our pharmaceutical products includethree types of balms and a herbal cough remedy under the “Cap Kaki Tiga” brand.

We have established an extensive nationwide distribution and sales network through our distributionarm, DLS, which has allowed us to grow rapidly and penetrate the large Indonesian consumer goodsmarket. DLS is the sole distributor of our products and the food products of PT MKI through its ownedbranches and third-party local distributors. DLS as our first group company started its distributionbusiness in 1991, and provides us a strong heritage and expertise in distribution. As at 30 June 2015,DLS had 29 branches and 124 third-party local distributors with whom DLS has entered into 189distribution agreements (totalling 211 distribution centres), which provided us access to a nationwidenetwork of 941,106 direct and indirect outlets spread across 35 provinces in Indonesia. Our ownedbranches are primarily focused on the Java and Bali regions where we believe consumers generallyhave greater spending power as these regions account for the majority of the population and spendingin Indonesia. In order to penetrate other regions in Indonesia, such as Sumatra, Kalimantan andSulawesi in a cost effective manner, we distribute our products in these regions through third-partylocal distributors, which gives us access to close-to-ground knowledge of regional business conditionsand practices. Our personal care products are also exported to the Philippines through KCP and its 27third-party local distributors, to Vietnam through KVC and its one local distributor, to Malaysiathrough KCM and its one local distributor, and to other countries around the world. While ourinternational sales are currently small, we expect these to increase over time.

We have four plants located in Cikande (Banten), Cidahu (West Java), Cikembar (West Java) andPandaan (East Java), and PT MKI has two plants located in Sayung (Central Java) and Terboyo(Central Java). The six plants have a total installed capacity of 237,476 kilolitres. We also operatetwelve warehouses, which are used as distribution centres, located in Kapuk, Tangerang (PondokAren), Serang, Depok, Bekasi, Bandung (Ciseureuh), Bandung (Margasuka), Semarang, Sidoarjo,Surabaya, Makassar and Denpasar, accounting for a total of 17,235 pallet positions as at 30 June 2015.

Our sales and net income have continuously increased in recent years. Our sales amounted toRp1,692,137 million, Rp2,267,314 million, Rp3,339,386 million and Rp1,746,627 million (US$131.0million) in the years ended 31 December 2012, 2013, 2014 and the six months ended 30 June 2015respectively. Our net income was Rp31,544 million, Rp51,155 million, Rp104,160 million andRp141,336 million (US$10.6 million) in the years ended 31 December 2012, 2013, 2014 and the sixmonths ended 30 June 2015 respectively.

Basis of Presentation

Our Company was incorporated under the name of “PT Kinocare Era Kosmetindo” as an Indonesianlimited liability company on 8 February 1999. Our Group was formed in 2014 pursuant to a grouprestructuring exercise. As part of the group restructuring exercise, our Company became the holdingcompany of our various subsidiaries. For more details, see “History, Corporate Restructuring andGroup Structure.”

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The subsidiaries acquired pursuant to the group restructuring exercise under common control havebeen consolidated using the pooling-of-interest method. In applying the pooling-of-interests method,the components of the financial statements for the period during which the restructuring occurred andfor other periods presented, for comparison purposes, are presented as if the restructuring had alreadyoccurred at the beginning of the period during which the entities were under common control. As aresult, the consolidated financial statements as at and for the years ended 31 December 2012 and 2013have been restated as required by Indonesian FAS. The difference between the carrying amount of thebusiness combination transaction and the consideration transferred is recognised under the account“Additional paid — in capital” in our consolidated statement of financial position.

Our consolidated financial information as at and for the years ended 31 December 2012, 2013 and2014 and the six months ended 30 June 2015 was audited by Kosasih, Nurdiyaman, Tjahjo & Rekan(a member firm of Crowe Horwath International), registered public accountants in Indonesia. Ourconsolidated financial information as at and for the six months ended 30 June 2014 was reviewed byKosasih, Nurdiyaman, Tjahjo & Rekan (a member firm of Crowe Horwath International).

Factors Affecting our Results of Operations

The following are the primary factors that affect our results of operations.

Market Demand for our Products

We offer an extensive range of personal care, beverages, food and pharmaceutical products to ourcustomers primarily in Indonesia. Our historical revenue growth has been primarily attributable to anincrease in the market demand for our products in Indonesia which in turn primarily depends on thegrowth of the Indonesian economy as a whole and the rising individual disposable income inIndonesia. Slower economic growth or recessionary periods may lead to slower growth or evendeclines in our sales. For example, the sales generated by our food business division decreased in thefirst half of 2015 primarily due to a decrease in market demand caused by the slowdown in Indonesia’seconomic growth in the first half of 2015. During periods of economic uncertainty, particularly wherethe disposable income of consumers is affected, consumers may generally purchase fewerdiscretionary consumer goods products or switch to cheaper substitutes. In periods of economicgrowth, we are able to benefit from increased disposable income and consumer purchasing power. Weexpect that the increased purchasing power of consumers in Indonesia will promote their spending onour products and continue to serve as a key driver for our sales growth.

Branding, Product Mix and Pricing

We compete with our competitors on a brand basis. We seek to develop and market brands andproducts in select market segments that are not saturated with other brands and products. For example,we have successfully launched a number of intimate hygiene products under the “Resik-V” brand,which has become one of the best-selling intimate hygiene products in Indonesia. We havesuccessfully established consumers’ awareness and acceptance of our product brands in Indonesia andassociated these brands with images of good quality, health, convenience and safety. Due to our strongbrand, we believe increasing numbers of consumers have purchased our products, which in turn hasled to our revenue and profit growth.

Our ability to expand our product offerings and the diversity of our product mix under our brands havehad, and will continue to have, a significant impact on our results of operations and ourcompetitiveness in the consumer goods industry in Indonesia. Different products have different grossprofit margins depending on factors such as raw material costs, production costs, product pricing andour marketing and branding strategy. Our sales composition, margins and profit level have varied andmay continue to vary as our product mix evolves. We intend to continue to optimise our productportfolio in response to the changes in market conditions and consumer preferences to maximise oursales and profits.

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Our diversified product offerings, coupled with the reputation for good quality, reliability and safetyassociated with our brands, have enabled us to command higher prices as compared with similarproducts offered by other manufacturers. We price our products based on a combination of differentfactors, such as inflation, the market positioning of our product brands, sales channels, anticipatedmarket trend, expected changes in consumer demand for our products, costs of production, and theselling prices of comparable or similar products of our competitors. Historically, we have generallymaintained our sales prices at desired levels by regularly introducing new or improved products. Fromtime to time, we have been able to increase the selling prices of some of our products due to ourenhanced brand recognition and market position. Our ability to continue to price our products atdesired levels has been, and will continue to be, important to our results of operations and financialperformance.

We believe that through the continuous strengthening of our brands, our extensive range of productofferings and other competitive strengths, we have built and solidified the loyalty of our customers,which in turn reduces their sensitivity to the prices of our products.

Expansion of Distribution Network and Development of Distribution Channels

Our results of operations are affected by our access to direct and indirect outlets and the coverage ofour distribution network. As at 30 June 2015, we had established an extensive nationwide distributionnetwork with 29 owned branches and 124 local distributors with whom DLS has entered into 189distribution agreements (totalling 211 distribution centres), located across 35 provinces in Indonesia.We have developed three distribution channels, across the general trade, modern trade and institutionaltrade segments, with access to 941,106 direct and indirect outlets nationwide as at 30 June 2015,including those in the regions of Java, Bali, Nusa Tenggara, Sumatera, Kalimantan, Sulawesi, Malukuand Papua. As Indonesian consumers shift to shopping at larger format retailers, the modern tradechannel will become more significant, but currently general trade is the most important channel in ourdistribution network. Due to differing distribution and promotional costs, the profitability of theproducts we sell varies with the distribution channel. In addition, the advertising costs and thepersonal sales efforts required vary with the distribution channel. Therefore, the expansion of ourdistribution network, the geographic reach of our direct and indirect outlets and the differentdistribution channel directly impact our sales and profitability.

Maintaining and developing our distribution network require time, managerial and financial resources,but, based on our proven track record of success, we believe such efforts are an effective investmentin future sales and profitability growth. Our ability to maintain our existing distribution network andengage additional owned branches, local distributors and wholesalers to sell our products as ourbusiness grows will have a direct impact on our sales and hence our results of operations.

Cost of Raw Materials

Our raw materials primarily comprise sugar, alcohol, gelatine, emollient, surfactant, fragrance andpackaging materials such as aluminium cans and plastic bottles. Raw materials (including packagingmaterials) accounted for 79.2%, 71.2%, 56.5% and 60.6%, respectively, of our cost of sales during theyears ended 31 December 2012, 2013 and 2014 and the six months ended 30 June 2015. The cost ofraw materials as a percentage of our cost of sales decreased in 2014 mainly due to (i) higher salescontribution in 2014 from DLS’s distribution of food products purchased from PT MKI, and (ii) betterpricing terms for raw materials we obtained from a few suppliers.

The price of raw materials, including packaging materials, is determined principally by market forcessuch as commodity price fluctuations and changes in governmental policies, as well as our bargainingpower vis-a-vis suppliers. Leveraging our size of operations since 2014, we have renegotiated supplycontract terms with a number of suppliers by exchanging quicker payment for better pricing terms. Aswe increase our production in accordance with our expansion plans, we expect that our demand for rawmaterials will increase. A majority of the raw materials we procure are purchased from domesticsuppliers to ensure reliable supply and efficient delivery to our plants. Of the main raw materials we

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use, the price of sugar is the most susceptible to fluctuation, due to the standard short-term nature ofthe supply contracts. In addition, the payment for 55.0%, 66.1%, 62.4%, and 58.7% of the rawmaterials we procured in 2012, 2013, 2014 and the six months ended 30 June 2015, respectively, wasmade in U.S. dollars. If the Rupiah depreciates against the U.S. dollar, our procurement of rawmaterials in U.S. dollars will increase in Rupiah terms. However, due to the implementation of PBI17/3/PBI/2015, our exposure to U.S. dollar fluctuations has been decreasing in the second half of 2015as more of our purchases of raw materials will be denominated in Rupiah. We expect that the pricesof our raw materials will continue to fluctuate and be affected by foreign exchange rate movementsin the future.

Advertising and Promotion Expenses

Our results of operations and financial position have been, and will continue to be, affected by ourability to maintain and enhance brand recognition and popularity of our products. In order to furtherstrengthen the image and market awareness of our brands, we plan to increase advertising andpromotional activities. Our level of expenditure for each product category varies and is dependentupon a number of factors, including our strategy for a particular product, the estimated potential sizeof the market, competition, and other factors. For example, we may need to increase spending onadvertising and promotion to protect existing market share or increase market share. We wouldtypically incur a higher level of expenditures for a launch of new products.

Advertising and promotion activities have contributed to our strong branding, which we believe hasbeen, and will continue to be, a factor driving our results of operations. Our advertising and promotionexpenses were Rp385,303 million, Rp479,818 million, Rp510,361 million and Rp266,159 million(US$20.0 million) in 2012, 2013, 2014 and the six months ended 30 June 2015. Our advertising andpromotion expenses as a percentage of sales were 22.8%, 21.2%, 15.3% and 15.2% in 2012, 2013,2014 and the six months ended 30 June 2015. Our advertising and promotion expenses are likely toincrease as our business expands, and we consider such expenditures a necessary investment for asustainable and profitable business.

Joint Venture with Morinaga & Co. Ltd

In July 2013, our Company and Mr. Harris Sanusi established a joint venture, PT MKI, with Morinaga& Co. Ltd to manufacture and sell food products. See “Material Contracts — Joint VentureAgreement”. We own a stake of 29.4% in the joint venture and treat the joint venture as an associateof our Company. After the establishment of PT MKI, our associate, PT KSI, which previouslyundertook food production in Sayung and Terboyo factories, ceased its food production. PT MKI iscurrently manufacturing a variety of confectioneries, snacks and powdered drinks that PT KSIpreviously manufactured, and it commenced production of its first Morinaga branded product in thesecond half of 2015. PT MKI will also begin importing Morinaga products in 2016.

In October 2013, DLS became the sole distributor of PT MKI in Indonesia, and started to distributeall products of PT MKI through owned branches and third-party local distributors. See “Related-PartyTransactions — Distribution Agreements — Distribution Agreement between DLS and PT MKI”. PTMKI provides DLS with certain discounts based on a purchase price list provided by PT MKI. To anextent, the profitability of this distribution arrangement for us depends on the discounts we may beable to obtain from PT MKI, which is beyond our control as we do not have control of PT MKI. Asa result of this distribution arrangement, starting from November 2013, our sales of food productsreflect DLS’s sales of food products manufactured by PT MKI, and our cost of sales include DLS’spurchase of finished goods inventory from PT MKI. Previously DLS distributed PT KSI’s foodproducts through owned branches only. Therefore, prior to November 2013, our sales of food productsreflected DLS owned branches’ sales of food products manufactured by PT KSI, and our cost of salesincluded DLS’s purchase of finished goods inventory from PT KSI. The joint venture is expected tohelp our food business grow faster, increase productivity and generate greater sales. We also expectto benefit from being able to cooperate with Morinaga & Co. Ltd in product innovation anddevelopment which will provide us access to higher income Indonesian consumers when we start to

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distribute Morinaga-branded products. 2014 represented the first full year of consolidated revenue andcost of sales following this joint venture and, with the growth of PT MKI, we expect our salescontributed by food products manufactured by the joint venture will continue to increase in the future.

Critical Accounting Policies

Our critical accounting policies are those that we believe are the most important to the portrayal ofour financial condition and results of operations and that require our management’s most difficult,subjective or complex judgments. In many cases, the accounting treatment of a particular transactionis specifically dictated by Indonesian FAS with no need for the application of our judgment. In certaincircumstances, however, the preparation of financial statements in conformity with Indonesian FASrequires management to make estimates and assumptions that affect the reported amounts of assets andliabilities and disclosures of contingent assets and liabilities at the date of the financial statements andthe reported amounts of revenue and expenses during the reporting period. Actual results could differfrom those estimates. We base our estimates on historical experience and on various other assumptionsthat our management believes are reasonable under the circumstances. However, critical accountingestimates are reflective of significant judgments and uncertainties and are sufficiently sensitive toresult in materially different results under different assumptions and conditions. We believe that ourcritical accounting estimates are those described below. We also have other accounting policies,estimates and judgments that we consider to be less significant which are set forth in detail in Notes2 and 3 to the Accountant’s Report set out in this Offering Circular.

Revenue Recognition

Revenue comprises the fair value of the consideration received or receivable for the sale of goods inthe ordinary course of our activities. Revenue is shown net of rebates, discounts and sales returns andafter eliminating sales within our Group.

We recognise revenue when the amount of revenue can be reliably measured, it is probable that futureeconomic benefits will flow to the entity and when specific criteria have been met for each of ourGroup’s activities as described below.

Sale of goods: Revenue from sales of goods is recognised when the significant risks and rewards havebeen transferred to the customer, which generally occurs at the same time as the physical delivery andreceipt of goods.

Interest income: Interest income arising from the bank and deposits held by our Group are recognisedwhen earned.

Expenses are recognised when incurred (accrual basis).

Depreciation of Fixed Assets

We recognise all fixed assets initially at cost, which comprises its purchase price and any costsdirectly attributable in bringing the asset to the location and condition necessary for it to be capableof operating in the manner intended by our management. Subsequent to initial recognition, fixed assetsexcept land are stated at cost less any subsequent accumulated depreciation and impairment losses.

Depreciation of an asset starts when it is available for use and is computed using the straight-linemethod based on the estimated useful lives of the assets. Effective 1 January 2014, our Company andDLS changed the depreciation method of fixed assets from the double-declining method to thestraight-line method and our Company also changed the estimation of useful lives of some buildingsfrom 10 years to 20 years. Effective 1 January 2015, our Company and DLS made another change on

— 65 —

the estimated useful lives of some buildings from previously 20 years to 40 years. Our Company alsochanged the estimated useful lives of some machinery from previously 4 - 8 years to 4 - 20 years.Changes in these estimates are applied prospectively and are applied after considering the effect ofrepair and maintenance carried out.

Our estimation of useful lives and depreciation method are as follows:

Estimated Useful Life (Years) Depreciation Method

Before 1 January

2015

After 1 January

2015

Before 1 January

2014

After 1 January

2014

Buildings 10 — 20 10 - 40 Straight-line Straight-line

Vehicles 4 — 8 4 - 8 Double-decliningand Straight-line

Straight-line

Office equipment 3 — 8 3 - 8 Double-decliningand Straight-line

Straight-line

Machinery 4 — 8 4 - 20 Double-decliningand Straight-line

Straight-line

The impact of the changes in depreciation method is recognised prospectively in the profit or loss ofthe period of change as follows:

Year Ended

31 December 2014 Six Months ended 30 June 2015

(Rp million) (Rp millions) (US$ millions)

Deduction of Depreciation Expense 24,059 16,880 1.3

Deduction of Income Taxes 6,015 (4,220) (0.3)

Addition of Current Year Income 18,044 12,660 1.0

We value land based on fair value. The fair value of land is evaluated based on an assessmentconducted by an independent valuer. Assessment of assets is carried out once a year to ensure that thefair value of revalued assets does not differ materially from their carrying amount. We review andadjust the residual values, estimated useful lives, and depreciation method at the end of each period,if necessary.

Inventories

Inventories are valued at lower of cost or net realisable value. The cost of our inventories isdetermined using the weighted average method. We determine net realisable value based on theestimated selling price in the ordinary course of business less estimated costs necessary to completeand sell the inventory.

Allowances for impairment and obsolescence of inventories are estimated based on facts andcircumstances, including, but not limited to, the physical condition of inventories held, market price,estimated completion cost, and estimated costs incurred for selling inventories. Obsolescence ofinventories is re-evaluated and adjusted as additional information received affects the estimatedamounts.

Allowance for Impairment of Trade Receivables

We evaluate specific accounts where we have information that certain customers are unable to meettheir financial obligations. Based on the best available facts and circumstances, including but notlimited to, the length of our relationship with the customer and the customer’s current credit status

— 66 —

based on third-party credit reports and known market factors, we record specific provisions for

customers against amounts due to reduce receivable amounts that we expect to collect. We re-evaluate

and adjust provisions when we receive additional information affecting the amounts of allowance for

impairment losses of trade receivables.

Deferred Tax Assets and Liabilities

Deferred tax assets are recognised for all taxable temporary differences to the extent that it is probable

that the temporary differences can be used. Significant management estimates are required to

determine the amount of deferred tax assets that can be recognised, based upon the likely timing and

the level of future taxable profits together with future tax planning strategies. Future tax benefits, such

as unused tax losses, are recognised to the extent such benefits can be realised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period

when the asset is realised or the liability is settled, based on tax laws that have been enacted or

substantively enacted at the end of reporting period. The related tax effects of the provisions for and/or

reversals of all temporary differences during the year, including the effect of change in tax rates, are

included in the consolidated statement of profit or loss and other comprehensive income of the current

year.

Deferred tax assets and liabilities are offset when a legally enforceable right exists to offset current

tax assets against current tax liabilities, or the deferred tax assets and the deferred tax liabilities relate

to the same taxable entity, or the Group intends to settle its current assets and liabilities on a net basis.

The carrying amount of a deferred tax asset is reviewed at each reporting date and reduced to the

extent that it is no longer probable that sufficient taxable income will be available to allow all or part

of the benefit of that deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed

at each reporting date and are recognised to the extent that it has become probable that future taxable

income will allow the deferred tax assets to be recovered.

Restructuring Transaction of Entities under Common Control

Transfer of business within entities under common control does not result in a change of the economic

substance of the ownership of the business being transferred and therefore it will not result in a gain

or loss to the group or to the individual entity within the group. The business being exchanged (i.e.

KCM, KCP, KVC and Kino International) is recorded at book values as a business combination using

the pooling-of-interests method. In applying the pooling-of-interests method, the components of the

financial statements for the period, during which the restructuring occurred and for other periods

presented, for comparison purposes, are presented in such a manner as if the restructuring had already

happened since the beginning of the period during which the entities were under control. The

difference between the carrying amount of the business combination transaction and the consideration

transferred is recognised under the account “Additional paid-in capital.”

The accounts of KCM, KCP, KVC and Kino International, our foreign subsidiaries, were translated

into Rupiah amounts at the middle rate of exchange prevailing at the date of the statement of financial

position and the average rates during the period for profit and loss accounts. The resulting difference

arising from the translations of the financial statements of KCM, KCP, KVC and Kino International

are presented as “other comprehensive income” under the equity section of the consolidated

statements of financial position.

— 67 —

Components of Our Statements of Profit or Loss and Other Comprehensive Income

Sales

Sales consist of revenue from sales, after elimination of inter-group sales. DLS became the sole

distributor of our Company in August 2014 and PT MKI in October 2013, and distributes all products

through owned branches and third-party local distributors. See “Related-Party Transactions —

Distribution Agreements — Distribution Agreement between DLS and PT MKI” and “Related-Party

Transactions — Distribution Agreements — Cooperation Agreement between our Company and DLS”.

Previously our Company and PT KSI, our associate which previously manufactured food products,

sold their products to DLS and to third-party local distributors directly, and DLS distributed the

products manufactured by our Company and PT KSI through owned branches only. Therefore, since

November 2013, our revenue from food sold represents the distribution and sale, by DLS, of food

products manufactured by PT MKI via owned branches and third-party local distributors, while prior

to November 2013, our sales of food products reflected DLS owned branches’ sale of food products

manufactured by PT KSI. All of the food products manufactured by PT MKI are distributed by DLS,

while previously only a portion of food products manufactured by PT KSI were distributed by DLS.

The following table sets forth the total net sales and gross percentages for each of our business

divisions (excluding inter-group sales) for the periods indicated.

Year Ended 31 December Six Months Ended 30 June

2012 2013 2014 2014 2015

(Rp in millions and US$ in thousands)

(Rp) (%) (Rp) (%) (Rp) (%) (Rp) (%) (Rp) (US$) (%)

Personal Care 865,140 51.1 1,172,145 51.7 1,389,297 41.6 713,236 44.7 877,622 65,828 50.2

Beverages 750,935 44.4 904,859 39.9 1,167,612 35.0 548,549 34.4 632,528 47,444 36.2

Food 73,605 4.3 176,852 7.8 775,391 23.2 329,632 20.7 234,099 17,559 13.4

Pharmaceutical 2,457 0.1 13,458 0.6 7,086 0.2 3,845 0.2 2,378 178 0.1

Sales 1,692,137 100.0 2,267,314 100.0 3,339,386 100.0 1,595,262 100.0 1,746,627 131,010 100.0

Cost of Sales

Cost of sales consists primarily of (a) the manufacturing costs of the finished goods inventory sold

and (b) the purchasing costs of the finished goods inventory. The principal costs we incur in

manufacturing goods are: (i) raw materials used, including primarily sugar, alcohol, gelatine,

emollient, surfactant, fragrance and packing materials; (ii) direct labour costs (mainly of employees

and contract workers working at the production lines); and (iii) manufacturing expenses, which consist

primarily of direct costs such as fuel and utility costs, salaries and wages of our plant employees who

play administrative roles, and transportation, which relate directly to production activities, as well as

depreciation charges for fixed assets, which relate to production activities and licensing and other

indirect costs relating to production activities. Our purchase of finished goods inventory mainly

includes the costs of our purchase of food products from PT MKI, and prior to November 2013,

included the costs of our purchase of food products from PT KSI.

— 68 —

The following table sets forth the components of our cost of sales for the periods indicated.

Year Ended 31 December Six Months Ended 30 June

2012 2013 2014 2014 2015

(Rp in millions and US$ in thousands)

(Rp) (Rp) (Rp) (Rp) (Rp) (US$)

Raw material and packingused 808,536 965,587 1,242,795 632,282 613,668 46,030

Direct labour 42,653 58,329 78,918 40,140 43,620 3,272

Factory overhead 140,320 158,022 171,268 75,704 86,918 6,520

Total manufacturing cost 991,509 1,181,938 1,492,981 748,126 744,206 55,821

Work in process inventory

Beginning balance 3,864 3,741 4,648 4,648 5,219 391

Disposal 122 806 1,534 179 322 24

Ending balance (3,741) (4,648) (5,219) (7,959) (6,335) (475)

Cost of good manufactured 991,754 1,181,837 1,493,944 744,994 743,412 55,761

Finished goods inventory

Beginning balance 47,203 88,407 111,819 111,819 188,334 14,126

Purchases 65,211 182,897 767,421 373,657 221,728 16,631

Disposal 4,870 13,908 16,086 4,281 4,506 338

Ending balance (88,407) (111,819) (188.334) (196,319) (145,749) (10,932)

Total cost of sales 1,020,631 1,355,230 2,200,936 1,038,432 1,012,231 75,925

The following table sets forth the cost of sales for each of our business divisions for the periods

indicated.

Year Ended 31 December Six Months Ended 30 June

2012 2013 2014 2014 2015

(Rp in millions and US$ in thousands)

(Rp) (%) (Rp) (%) (Rp) (%) (Rp) (%) (Rp) (US$) (%)

Personal Care 488,531 47.8 568,591 41.9 713,872 32.4 376,967 36.3 402,343 30,179 39.7

Beverages 463,493 45.4 617,690 45.6 760,170 34.5 355,364 34.2 393,392 29,507 38.9

Food 66,685 6.5 159,361 11.8 721,608 32.8 303,544 29.2 214,788 16,111 21.2

Pharmaceutical 1,922 0.2 9,588 0.7 5,286 0.2 2,557 0.2 1,708 128 0.2

Total cost ofsales 1,020,631 100.0 1,355,230 100.0 2,200,936 100.0 1,038,432 100.0 1,012,231 75,925 100.0

Selling Expenses

Selling expenses consist primarily of expenses related to: (i) advertising and promotion; (ii)

transportation; (iii) salaries for sales and marketing personnel; (iv) rent (primarily of warehouses and

branch office space); and (v) training.

— 69 —

The following table sets forth the components of our selling expenses for the periods indicated.

Year Ended 31 December Six Months Ended 30 June

2012 2013 2014 2014 2015

(Rp in millions and US$ in thousands)

(Rp) (Rp) (Rp) (Rp) (Rp) (US$)

Advertising and promotion 385,303 479,818 510,361 254,246 266,159 19,964Transportation 61,448 78,031 114,076 53,292 53,912 4,044Salaries 28,126 47,997 92,105 45,862 47,511 3,564Rent 1,692 6,411 11,315 3,334 7,276 546Training 830 2,339 451 212 391 29

Total 477,399 614,596 728,308 356,946 375,249 28,146

General and Administrative Expenses

General and administrative expenses consist primarily of: (i) salaries, wages, employee benefits andallowances for management as well as general and administrative personnel; (ii) depreciation; (iii)rental; (iv) office supplies; (v) repair and maintenance; (vi) business travel; (vii) water and electricity;(viii) professional fees; (ix) permit and retribution; (x) allowance for impairment and obsolescence ofinventories; and (xi) research and development.

The following table sets forth the components of our general and administrative expenses for theperiods indicated.

Year Ended 31 December Six Months Ended 30 June

2012 2013 2014 2014 2015

(Rp in millions and US$ in thousands)

(Rp) (Rp) (Rp) (Rp) (Rp) (US$)

Salaries, wages andallowances 57,046 87,755 143,519 66,711 85,065 6,381

Depreciation 11,592 15,058 13,279 6,077 7,002 525Rental 5,437 9,891 10,469 5,028 7,231 542Office supplies 6,459 10,964 10,672 6,072 3,523 264Repair and maintenance 4,510 6,796 6,165 2,613 2,681 201Employee benefits 3,634 5,460 5,531 2,669 6,233 468Business travel 6,114 9,597 5,513 2,377 1,568 118Water and electricity 1,570 3,202 5,365 726 2,418 181Professional fees 765 3,013 5,204 3,291 2,384 179Permit and retribution 1,674 3,704 3,749 1,618 2,785 209Allowance for impairment

and obsolescence ofinventories 13,565 6,266 3,084 2,401 2,093 157

Research and development 1,429 1,307 2,505 1,331 908 68Operational 2,044 3,730 2,262 1,229 1,566 117Representation and

entertainment 1,119 1,265 1,349 601 539 40Telephone 1,433 1,622 1,218 2,568 906 68Insurances 468 1,133 1,134 244 16 1Allowance for impairment

losses of receivables 513 5,939 897 845 277 21Transportation 739 671 761 318 617 46Others 157 1,171 1,140 297 295 22

Total 120,268 178,544 223,816 107,016 128,107 9,609

— 70 —

Interest Expenses

Our interest expenses consist of interest on bank loans, consumer financing payables and finance leasepayables. Consumer financing payables and finance lease payables relate to payables on the purchaseof vehicles.

The following table sets forth the components of our interest expenses for the periods indicated.

Year Ended 31 December Six Months Ended 30 June

2012 2013 2014 2014 2015

(Rp in millions and US$ in thousands)

(Rp) (Rp) (Rp) (Rp) (Rp) (US$)

Short-term bank loans 19,172 25,692 49,066 19,181 36,234 2,718

Long-term bank loans 10,620 9,059 9,459 4,164 5,837 438

Consumer financingpayables 1,349 555 841 333 134 10

Finance lease payables — 1,135 1,137 724 648 49

Total 31,141 36,441 60,503 24,402 42,853 3,214

Gain (Loss) on Foreign Exchange

Our financial statements are maintained in Rupiah. Transactions involving foreign currencies arerecorded in the functional currency at the rates of exchange prevailing at the time the transactions aremade. As at the balance sheet date, monetary assets and liabilities denominated in foreign currenciesare adjusted to reflect the average of the buying and selling rates of exchange published by BankIndonesia at the last banking transaction date of the period. Any resulting gains or losses are creditedor charged to operations of the related period.

Bank Administration Expenses

Bank administration expenses include bank charges relating to financing.

Share of Gain (Loss) in Associates

Share of gain (loss) in associates reflect the results of operations of our associates, which include ourshare in net earnings or losses of PT MKI (a 29.4% owned associate) and PT Kinoaid Indonesia (a 24%owned associate which was liquidated in July 2014).

Our investment in associates is accounted for using the equity method. Under the equity method, thecost of investment is increased or decreased by our share in net earnings or losses of, and dividendsreceived from the investee since the date of acquisition. If our share of the losses of an associateequals or exceeds our interest in the associate, we discontinue to recognising our share of furtherlosses.

Gain on Sale of Fixed Assets

Gain on sale of fixed assets reflects our gain on disposal of fixed assets, which equals selling priceminus the book value of the fixed assets.

Gain on Sale of Scrap

Gain on sale of scrap includes our gains on sale of scrap materials such as industrial waste, emptydrums and containers.

— 71 —

Interest Income

Interest income consists of interest arising from cash in banks and time deposits.

Others

Others includes other non-operational income and expenses such as rebates from the purchase of rawmaterials.

Income Tax Expense

Our total tax expenses consist of current income tax and deferred income tax. Current income tax isdetermined based on the taxable income for the period. Deferred tax assets and liabilities arerecognised for subsequent periods and calculated based on the differences between the carryingamounts of existing assets and liabilities in the financial statements and their respective tax bases atthe balance sheet date.

The following table sets forth the components of our income tax expenses (net) for the periodsindicated.

Year ended 31 December Six Months Ended 30 June

2012 2013 2014 2014 2015

(Rp in millions and US$ in thousands)

(Rp) (Rp) (Rp) (Rp) (Rp) (US$)

Income taxes expense/(benefit)

Current (15,096) (19,339) (26,448) (16,309) (39,715) (2,979)

Deferred 2,196 302 (7,825) (3,724) (5,488) (412)

Total (12,900) (19,037) (34,273) (20,033) (45,203) (3,391)

Pro Forma Adjustment on Current Year Income

Pro forma adjustments for each of the years ended 31 December 2012, 2013 and 2014 represent thenet income or loss of DLS, KCP, KCM and KVC for the respective year prior to their acquisitions inJune 2014, July 2014, June 2014 and July 2014 respectively. This is deducted from, or added back to,our current year income before pro forma adjustment to derive our income for the relevant year. Ourcurrent year income before effect of pro forma adjustment reflects the combined net income of ourGroup as if the acquisitions had occurred at the beginning of the relevant year.

Other Comprehensive Income

Other comprehensive income primarily represents revaluation surplus from land.

Pro Forma Adjustment on Other Comprehensive Income

Pro forma adjustment for each of the years ended 31 December 2012, 2013 and 2014 represents theother comprehensive income of DLS, KCP, KCM and KVC for the respective year prior to theiracquisitions. This is deducted from our comprehensive income before pro forma adjustment on othercomprehensive income to derive our comprehensive income for the relevant year.

Our comprehensive income before effect of pro forma adjustment on other comprehensive incomereflects the combined comprehensive income of our Group as if the acquisitions had occurred on thebeginning of the relevant year.

— 72 —

Results of Operations

The following table sets out the results of our operations for the periods indicated.

Year Ended 31 December Six Months Ended 30 June

(Rp in millions and US$ in thousands)

2012 2013 2014 2014 2015

(Rp) (%) (Rp) (%) (Rp) (%) (Rp) (%) (Rp) (US$) (%)

Sales 1,692,137 100.0 2,267,314 100.0 3,339,386 100.0 1,595,262 100.0 1,746,627 131,010 100.0

Cost of sales 1,020,631 60.3 1,355,230 59.8 2,200,936 65.9 1,038,432 65.1 1,012,231 75,925 58.0

Gross profit 671,506 39.7 912,084 40.2 1,138,450 34.1 556,830 34.9 734,396 55,085 42.0

Selling expenses (477,399) (28.2) (614,596) (27.1) (728,308) (21.8) (356,946) (22.4) (375,249) (28,146) (21.5)

General and administrative

expenses (120,268) (7.1) (178,544) (7.9) (223,816) (6.7) (107,016) (6.7) (128,107) (9,609) (7.3)

Interest expenses (31,141) (1.8) (36,441) (1.6) (60,503) (1.8) (24,402) (1.5) (42,853) (3,214) (2.5)

Loss on foreign exchange -

net (3,175) (0.2) (11,751) (0.5) (4,293) (0.1) (1,707) (0.1) (5,145) (386) (0.3)

Bank administration

expenses (1,877) (0.1) (2,116) (0.1) (3,143) (0.1) (1,234) (0.1) (1,770) (133) (0.1)

Share of gain (loss) in

associates (55) — (446) — 2,118 0.1 (2,918) (0.2) (5,109) (383) (0.3)

Gain on sale of fixed assets 8 — 735 — 2,092 0.1 1,183 0.1 1,347 101 0.1

Gain on sale of scrap 1,048 0.1 4,342 0.2 1,595 — 856 0.1 999 75 0.1

Interest income 63 — 634 — 1,217 — 504 — 977 73 0.1

Others - net 448 — 3,592 0.2 12,119 0.4 4,372 0.3 7,053 529 0.4

Income before income taxes

- net 39,158 2.3 77,493 3.4 137,528 4.1 69,522 4.4 186,539 13,992 10.7

Income tax expenses - net (12,900) (0.8) (19,037) (0.8) (34,273) (1.0) (20,033) (1.3) (45,203) (3,391) (2.6)

Current year/period income

before effect of pro

forma adjustment 26,258 1.6 58,456 2.6 103,255 3.1 49,489 3.1 141,336 10,601 8.1

Effect of pro forma

adjustment on current

year/period income 5,286 0.3 (7,301) (0.3) 905 — 862 0.1 — — —

Current year/period income 31,544 1.9 51,155 2.3 104,160 3.1 50,351 3.2 141,336 10,601 8.1

Other comprehensive

income 177,885 10.5 151,122 6.7 97,405 2.9 (7,800) (0.5) 24,101 1,808 1.4

Comprehensive income

before effect of pro

forma adjustment on

other comprehensive

income 209,429 12.4 202,277 8.9 201,565 6.0 42,551 2.7 165,437 12,409 9.5

Effect of pro forma

adjustment on other

comprehensive income (23,329) (1.4) (6,662) (0.3) 2,985 0.1 2,699 0.2 — — —

Comprehensive income 186,100 11.0 195,615 8.6 204,550 6.1 45,250 2.8 165,437 12,409 9.5

Current year/period income

attributable to:

Owners of the Parent

Company 31,460 1.9 50,893 2.2 103,995 3.1 50,241 3.1 141,330 10,601 8.1

Non-controlling interest 84 — 262 — 165 — 110 — 6 0.5 —

Current year/period income 31,544 1.9 51,155 2.3 104,160 3.1 50,351 3.2 141,336 10,601 8.1

Total comprehensive

income attributable to:

Owners of the parent

company 185,393 11.0 195,123 8.6 204,460 6.1 45,225 2.8 165,429 12,408 9.5

Non-controlling interest 707 — 492 — 90 — 25 — 8 0.6 —

Comprehensive income 186,100 11.0 195,615 8.6 204,550 6.1 45,250 2.8 165,437 12,409 9.5

— 73 —

Comparison of Results of Operations

Six Months Ended 30 June 2015 Compared to Six Months Ended 30 June 2014

Sales

Our sales increased by Rp151,365 million (US$11.4 million), or 9.5%, to Rp1,746,627 million(US$131.0 million) in the six months ended 30 June 2015 from Rp1,595,262 million in the six monthsended 30 June 2014, due to increases in the sales of our personal care and beverage products, partiallyoffset by decreases in the sales of food and pharmaceutical products.

Personal care. Total sales for our personal care division increased by Rp164,386 million (US$12.3million), or 23.0%, to Rp877,622 million (US$65.8 million) in the six months ended 30 June 2015from Rp713,236 million in the six months ended 30 June 2014. This increase was primarily due to (i)our increased access to direct and indirect outlets, from 894,927 direct and indirect outlets as at 31December 2014 to 941,106 direct and indirect outlets as at 30 June 2015, and (ii) the addition of 22new SKUs across different personal care product categories.

Beverages. Total sales for our beverages division increased by Rp83,979 million (US$6.3 million), or15.3%, to Rp632,528 million (US$47.4 million) in the six months ended 30 June 2015 from Rp548,549million in the six months ended 30 June 2014. This increase was primarily due to (i) our increasedaccess to direct and indirect outlets, (ii) the addition of four new beverage SKUs we produced andsold, and (iii) an increase in the average selling price of certain beverages.

Food. Total sales for our food division decreased by Rp95,533 million (US$7.2 million), or 29.0%, toRp234,099 million (US$17.6 million) in the six months ended 30 June 2015 from Rp329,632 millionin the six months ended 30 June 2014. This decrease was primarily due to the reduced market demandfor food products caused by the slowdown in Indonesia’s economic growth in the first half of 2015.

Pharmaceuticals. Total sales for our pharmaceutical division decreased by Rp1,467 million (US$0.1million), or 38.2%, to Rp2,378 million (US$0.2 million) in the six months ended 30 June 2015 fromRp3,845 million in the six months ended 30 June 2014. This decrease was primarily due to the reducedmarket demand for pharmaceutical products in the six months ended 30 June 2015.

Cost of sales

Our cost of sales decreased by Rp26,201 million (US$2.0 million), or 2.5%, to Rp1,012,231 million(US$75.9 million) in the six months ended 30 June 2015 from Rp1,038,432 million in the six monthsended 30 June 2014 primarily because (i) the costs of packaging materials (mainly aluminium cans)for our personal care products decreased as we successfully renegotiated better pricing terms with oursuppliers in exchange for quicker payments, (ii) DLS reduced its purchase of food products from PTMKI as the market demand reduced in the six months ended 30 June 2015, and (iii) our depreciationcosts decreased as a result of the change in the depreciation method and estimation of useful life offixed assets of our Company and DLS.

Gross Profit

As a result of the foregoing, our gross profit increased by Rp177,566 million (US$13.3 million), or31.9%, to Rp734,396 million (US$55.1 million) in the six months ended 30 June 2015 from Rp556,830million in the six months ended 30 June 2014. Our gross profit as a percentage of our net salesincreased to 42.0% in the six months ended 30 June 2015 from 34.9% in the six months ended 30 June2014 primarily due to (i) higher sales contribution from personal care products which generally havehigher gross profit margins than other products and (ii) lower cost of sales as discussed above.

— 74 —

Selling Expenses

Our selling expenses increased by Rp18,303 million (US$1.4 million), or 5.1%, to Rp375,249 million(US$28.1 million) in the six months ended 30 June 2015 from Rp356,946 million in the six monthsended 30 June 2014 primarily due to an increase in our advertising and promotion expenses as a resultof our introduction of 22 new personal care SKUs into the market.

General and Administrative Expenses

Our general and administrative expenses increased by Rp21,091 million (US$1.6 million), or 19.7%,to Rp128,107 million (US$9.6 million) in the six months ended 30 June 2015 from Rp107,016 millionin the six months ended 30 June 2014 primarily due to an increase in salaries, wages and allowancesfor our management and general and administrative personnel as we hired more general andadministrative personnel as a result of our business expansion. The increase in salaries, wages andallowances was also attributable to the bonuses we distributed to our employees for the Idul Fitriholiday.

Interest Expenses

Our interest expenses increased by Rp18,451 million (US$1.4 million), or 75.6%, to Rp42,853 million(US$3.2 million) in the six months ended 30 June 2015 from Rp24,402 million in the six months ended30 June 2014 primarily due to higher average balances of short-term and long-term bank borrowings.

Loss on Foreign Exchange — Net

Our loss on foreign exchange — net was Rp5,145 million (US$0.4 million) in the six months ended30 June 2015 compared to a loss on foreign exchange — net of Rp1,707 million in the six monthsended 30 June 2014. The increase in loss on foreign exchange — net was primarily due to the Rupiah’sweakening against the U.S. Dollar in the six months ended 30 June 2015.

Bank Administration Expenses

Our bank administration expenses increased by Rp536 million (US$0.04 million) to Rp1,770 million(US$0.1 million) in the six months ended 30 June 2015 from Rp1,234 million in the six months ended30 June 2014 primarily due to higher average balances of bank borrowings.

Share of Loss in Associates

Our share of loss in associates was Rp5,109 million (US$0.4 million) in the six months ended 30 June2015 as compared to a loss of Rp2,918 million in the six months ended 30 June 2014 due to increasedlosses incurred in PT MKI as a result of its decreased sale of food products caused by reduced marketdemand in the six months ended 30 June 2015.

Gain on Sale of Fixed Assets

Our gain on the sale of fixed assets increased by Rp164 million (US$0.01 million), or 13.9%, toRp1,347 million (US$0.1 million) in the six months ended 30 June 2015 from Rp1,183 million in thesix months ended 30 June 2014 primarily due to our sale of vehicles in the six months ended 30 June2015.

Gain on Sale of Scrap

Our gain on the sale of scrap increased by Rp143 million (US$0.01 million), or 16.7%, to Rp999million (US$0.07 million) in the six months ended 30 June 2015 from Rp856 million in the six monthsended 30 June 2014. This increase was primarily because our increased sale of scrap materials in thefirst half of 2015.

— 75 —

Interest Income

Our interest income increased by Rp473 million (US$0.04 million), or 93.9%, to Rp977 million(US$0.07 million) in the six months ended 30 June 2015 from Rp504 million in the six months ended2014 primarily due to higher average balances of cash in banks and time deposits.

Others — Net

Others — net stood at Rp7,053 million (US$0.5 million) in the six months ended 30 June 2015compared to Rp4,372 million in the six months ended 30 June 2014, primarily due to an increase inthe rebates we received from our suppliers in the six months ended 30 June 2015.

Income Tax Expenses — Net

Our total income tax expenses — net increased by Rp25,170 million (US$1.9 million), or 125.6%, toRp45,203 million (US$3.4 million) in the six months ended 30 June 2015 from Rp20,033 million inthe six months ended 30 June 2014 primarily due to an increase in our taxable income in the sixmonths ended 30 June 2015.

Current Period Income

As a result of the foregoing, our current period income increased by Rp90,985 million (US$6.8million), or 180.7%, to Rp141,336 million (US$10.6 million) in the six months ended 30 June 2015from Rp50,351 million in the six months ended 30 June 2014. Our current period income as apercentage of sales increased to 8.1% for the six months ended 30 June 2015 from 3.2% for the sixmonths ended 30 June 2014.

Other Comprehensive Income (Expense)

Our other comprehensive income increased to Rp24,101 million (US$1.8 million) in the six monthsended 30 June 2015 from other comprehensive expense of Rp7,800 million in the six months ended30 June 2014 primarily due to an increase in revaluation surplus from land in the six months ended30 June 2015.

Comprehensive Income

As a result of the foregoing, our comprehensive income increased by Rp120,187 million (US$9.0million), or 265.6%, to Rp165,437 million (US$12.4 million) in the six months ended 30 June 2015from Rp45,250 million in the six months ended 30 June 2014.

2014 Compared to 2013

Sales

Our sales increased by Rp1,072,072 million, or 47.3%, to Rp3,339,386 million in 2014 fromRp2,267,314 million in 2013, due to increases in the sales of our personal care, beverages and foodproducts.

Personal care. Total sales for our personal care division increased by Rp217,152 million, or 18.5%,to Rp1,389,297 million in 2014 from Rp1,172,145 million in 2013. This was primarily due to (i) ourincreased access to direct and indirect outlets, from 715,017 direct and indirect outlets as at 31December 2013 to 894,927 direct and indirect outlets as at 31 December 2014, and (ii) our launchesof new personal care products, including both new SKUs and new brands. In 2014, we introducedResik-V Keset Wangi and Eskulin Frozen, into the market.

— 76 —

Beverages. Total sales for our beverages division increased by Rp262,753 million, or 29.0%, toRp1,167,612 million in 2014 from Rp904,859 million in 2013. This was primarily due to (i) ourexpanded distribution network, and (ii) our increased marketing and promotion efforts in 2014.

Food. Total sales for our food division increased by Rp598,539 million, or 338.4%, to Rp775,391million in 2014 from Rp176,852 million in 2013. This was primarily due to a full year sale of foodproducts produced by PT MKI after DLS became the sole distributor of PT MKI in October 2013. In2013, the sales reflected the first ten months’ sale of food products manufactured by PT KSI by DLSowned branches and two months’ sale of food products manufactured by PT MKI by DLS ownedbranches and third-party local distributors.

Pharmaceuticals. Total sales for our pharmaceutical division decreased by Rp6,372 million, or 47.4%,to Rp7,086 million in 2014 from Rp13,458 million in 2013. This decrease was primarily due to lowerthan anticipated demand for our pharmaceutical products in 2014.

Cost of sales

Our cost of sales increased by Rp845,706 million, or 62.4%, to Rp2,200,936 million in 2014 fromRp1,355,230 million in 2013 primarily due to (i) an increase in the purchase of food products fromRp167,370 million in 2013 to Rp747,175 million in 2014, and (ii) an increase in the purchase of rawmaterials and packaging materials as our sales of personal care and beverage products increased fromRp952,665 million in 2013 to Rp1,265,991 million in 2014.

Gross Profit

As a result of the foregoing, our gross profit increased by Rp226,366 million, or 24.8%, toRp1,138,450 million in 2014 from Rp912,084 million in 2013. Our gross profit as a percentage of ournet sales decreased to 34.1% in 2014 from 40.2% in 2013 primarily due to DLS’s increased purchaseof food products from PT MKI which provided us a lower margin compared to products manufacturedby our Company.

Selling Expenses

Our selling expenses increased by Rp113,712 million, or 18.5%, to Rp728,308 million in 2014 fromRp614,596 million in 2013 primarily due to increases in advertising and promotion expenses,transportation expenses and distribution expenses, as well as an increase in salaries of our marketingand sales personnel, which was in line in the increase in our sales.

General and Administrative Expenses

Our general and administrative expenses increased by Rp45,272 million, or 25.4%, to Rp223,816million in 2014 from Rp178,544 million in 2013 primarily due to increases in salaries, wages andallowances for our management and general and administrative personnel as a result of our businessexpansion, partially offset by a decrease in allowance for impairment losses of receivables fromRp5,939 million in 2013 to Rp897 million in 2014 because of our improved management of tradereceivables. We adopted a new trade receivables collection mechanism in 2014, which improved ourmanagement of trade receivables and resulted in the reduction of our allowance for impairment losses.

Interest Expenses

Our interest expenses increased by Rp24,062 million, or 66.0%, to Rp60,503 million in 2014 fromRp36,441 million in 2013 primarily due to higher average balances of short-term bank borrowings.

— 77 —

Loss on Foreign Exchange — Net

Our loss on foreign exchange — net was Rp4,293 million in 2014 compared to a loss on foreignexchange - net of Rp11,751 million in 2013. The decrease in loss on foreign exchange — net wasprimarily due to less volatility in the exchange rate of the Rupiah against the U.S. Dollar in 2014.

Bank Administration Expenses

Our bank administration expenses increased by Rp1,027 million in 2014 to Rp3,143 million fromRp2,116 million in 2013 primarily due to higher average balances of bank borrowings.

Share of Gain in Associates

Our share of gain in associates was Rp2,118 million in 2014 as compared to a loss of Rp446 millionin 2013 because in 2014 we recognised operating results of PT MKI for the full year. In 2013 werecognised its operating loss for five months following its establishment.

Gain on Sale of Fixed Assets

Our gain on the sale of fixed assets increased by Rp1,357 million, or 184.6%, to Rp2,092 million in2014 from Rp735 million in 2013 primarily due to our sale of vehicles and machinery in 2014.

Gain on Sale of Scrap

Our gain on the sale of scrap decreased by Rp2,747 million, or 63.3%, to Rp1,595 million in 2014from Rp4,342 million in 2013. This decrease was primarily because our reduced sale of scrapmaterials in 2014.

Interest Income

Our interest income increased by Rp583 million, or 92.0%, to Rp1,217 million in 2014 from Rp634million in 2013 primarily due to higher average balances of cash in banks and time deposits.

Others — Net

Others — net stood at Rp12,119 million in 2014 compared to Rp3,592 million in 2013, primarily dueto a reversal of provisions made for minimum guarantee fees on royalties to our licensors and rebatesfrom purchase of raw materials.

Income Tax Expenses — Net

Our total income tax expenses — net increased by Rp15,236 million, or 80.0%, to Rp34,273 millionin 2014 from Rp19,037 million in 2013 primarily due to an increase in our taxable income in 2014.

Effect of Pro Forma Adjustment on Net Income

The pro forma adjustment on our income for 2014 was Rp905 million which represented a net lossrecorded by acquired subsidiaries for the period from 1 January 2014 to the respective date ofacquisition of such subsidiaries. In 2013, the pro forma adjustment on our income was a negativeRp7,301 million, which represented net income recorded by such subsidiaries in 2013.

Current Year Income

As a result of the foregoing, our current year income increased by Rp53,005 million, or 103.6%, toRp104,160 million in 2014 from Rp51,155 million in 2013. Our current year income as a percentageof sales increased to 3.1% for 2014 from 2.3% for 2013.

— 78 —

Other Comprehensive Income

Our other comprehensive income decreased by Rp53,717 million, or 35.6% to Rp97,405 million, in2014 from Rp151,122 million in 2013 primarily due to a decrease in revaluation surplus from land.

Effect of Pro Forma Adjustment on other Comprehensive Income

The pro forma adjustment on other comprehensive income was Rp2,985 million in 2014 compared toa negative balance of Rp6,662 million in 2013. The negative amount in 2013 reflected othercomprehensive income of Rp6,662 million recorded by the acquired subsidiaries in 2013, while in2014 such subsidiaries recorded Rp2,985 million of other comprehensive loss from 1 January 2014 tothe respective date of acquisition of such subsidiaries.

Comprehensive Income

As a result of the foregoing, our comprehensive income increased by Rp8,935 million, or 4.6%, toRp204,550 million in 2014 from Rp195,615 million in 2013.

2013 Compared to 2012

Sales

Our sales increased by Rp575,177 million, or 34.0%, to Rp2,267,314 million in 2013 fromRp1,692,137 million in 2012, due to increases in sales across all our divisions.

Personal care. Total sales for our personal care division increased by Rp307,005 million, or 35.5%,to Rp1,172,145 million in 2013 from Rp865,140 million in 2012. This was primarily due to (i) ourexpanded distribution network, from 671,023 direct and indirect outlets as at 31 December 2012 to715,017 direct and indirect outlets as at 31 December 2013, and (ii) our launches of new products suchas Master Kids Avenger and Eskulin Kids Mickey & Friends in 2013.

Beverages. Total sales for our beverages division increased by Rp153,924 million, or 20.5%, toRp904,859 million in 2013 from Rp750,935 million in 2012. This was primarily a result of ourincreased marketing efforts.

Food. Total sales for our food division increased by Rp103,247 million, or 140.3%, to Rp176,852million in 2013 from Rp73,605 million in 2012. This increase was primarily due to an increase in themarket demand for our powdered drink.

Pharmaceuticals. Total sales for our pharmaceuticals division increased by Rp11,001 million, or447.7%, to Rp13,458 million in 2013 from Rp2,457 million in 2012. This was primarily a result of ourlicensed use of the well-known “Cap Kaki Tiga” brand for pharmaceutical products since March 2012.

Cost of sales

Our cost of sales increased by Rp334,599 million, or 32.8%, to Rp1,355,230 million in 2013 fromRp1,020,631 million in 2012 primarily due to (i) an increase in the purchase of food products fromRp61,017 million in 2012 to Rp167,370 million in 2013, and (ii) an increase in the purchase of rawmaterials and packaging materials as our sales in personal care and beverages increased fromRp816,936 million in 2012 to Rp952,665 million in 2013.

Gross Profit

As a result of the foregoing, our gross profit increased by Rp240,578 million, or 35.8%, to Rp912,084million in 2013 from Rp671,506 million in 2012. Our gross profit as a percentage of our net salesincreased to 40.2% in 2013 from 39.7% in 2012.

— 79 —

Selling Expenses

Our selling expenses increased by Rp137,197 million, or 28.7%, to Rp614,596 million in 2013 from

Rp477,399 million in 2012 primarily due to increases in advertising and promotion expenses,

transportation expenses and distribution expenses, salaries of our marketing and sales personnel,

rentals and training expenses, which were in line with the increase in our sales.

General and Administrative Expenses

Our general and administrative expenses increased by Rp58,276 million, or 48.5%, to Rp178,544

million in 2013 from Rp120,268 million in 2012 primarily due to increase in salaries, wages and

allowances for our management and general and administrative personnel, allowance for impairment

losses of receivables, rental expenses, office supplies expenses, and travel expenses and depreciation.

Interest Expenses

Our interest expenses increased by Rp5,300 million, or 17.0%, to Rp36,441 million in 2013 from

Rp31,141 million in 2012 because of higher average balances of short-term bank borrowings.

Loss on Foreign Exchange — Net

Our loss on foreign exchange — net was Rp11,751 million in 2013 compared to a loss on foreign

exchange — net of Rp3,175 million in 2012. The increase in loss on foreign exchange — net was

primarily as a result of the Rupiah’s weakening against the U.S. Dollar in 2013.

Bank Administration Expenses

Our bank administration expenses increased by Rp239 million in 2013 to Rp2,116 million from

Rp1,877 million in 2012 primarily due to higher average balances of bank borrowings

Share of Gain (Loss) in Associates

Our share of loss in associates increased by Rp391 million, or 710.9%, to Rp446 million in 2013 from

Rp55 million in 2012 primarily due to our share of the operating loss of PT MKI of Rp387 million.

Gain on Sale of Fixed Assets

Our gain on the sale of fixed assets increased by Rp727 million, or 9,087.5%, to Rp735 million in 2013

from Rp8 million in 2012 primarily due to our sale of vehicles in 2013.

Gain on Sale of Scrap

Our gain on the sale of scrap increased by Rp3,294 million, or 314.3%, to Rp4,342 million in 2013

from Rp1,048 million in 2012. This increase was primarily because of our increased sale of scrap

materials in 2013.

Interest Income

Our interest income increased by Rp571 million, or 906.3%, to Rp634 million in 2013 from Rp63

million in 2012 primarily due to higher average balances of cash in banks and time deposits.

— 80 —

Others — Net

Others — net was an income of Rp3,592 million in 2013 compared to Rp448 million in 2012, primarily

due to insurance claim income, reversal of previous provisions for sales discounts and rebates from

purchase of raw materials.

Income Tax Expenses — Net

Our total income tax expenses — net increased by Rp6,137 million, or 47.6%, to Rp19,037 million

in 2013 from Rp12,900 million in 2012 primarily due to our increased taxable income in 2013.

Effect of Pro Forma Adjustment on Net Income

The pro forma adjustment on our income for 2013 was a negative Rp7,301 million which represented

net income recorded by acquired subsidiaries for the year. In 2012, the pro forma adjustment on our

income was Rp5,286 million which represented net loss recorded by such subsidiaries in 2012.

Current Year Income

As a result of the foregoing, our current year income increased by Rp19,611 million, or 62.2%, to

Rp51,155 million in 2013 from Rp31,544 million in 2012. Our current year income as a percentage

of sales increased to 2.3% for 2013 from 1.9% for 2012.

Other Comprehensive Income

Our other comprehensive income decreased by Rp26,763 million, or 15.0% to Rp151,122 million in

2013 from Rp177,885 million in 2012 primarily due to a decrease in revaluation from surplus.

Effect of Pro Forma Adjustment on other Comprehensive Income

The pro forma adjustment on other comprehensive income was a negative Rp6,662 million in 2013

compared to a negative Rp23,329 million in 2012. The negative amounts in both 2012 and 2013

represented other comprehensive income of acquired subsidiaries in the relevant year.

Comprehensive Income

As a result of the foregoing, our comprehensive income increased by Rp9,515 million, or 5.1%, to

Rp195,615 million in 2013 from Rp186,100 million in 2012.

— 81 —

Assets, Liabilities and Equity

Assets

The following table sets forth our total assets as at the dates indicated.As at 31 December

As at 31 December As at 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

ASSETSCURRENT ASSETSCash and cash equivalents 9,465 62,869 44,354 48,939 3,671Trade receivables

Third parties — net of allowance forimpairment losses of tradereceivables of Rp1,294 million,Rp8,930 million andRp8,760million as at 31 December 2012,2013 and 2014, and Rp9,112million as at 30 June 2015 248,117 301,937 445,839 752,277 56,426

Related parties 33,750 — — —Other receivables 1,878 4,470 6,793 5,817 436Inventories — net of allowance for

impairment and obsolescence ofinventories of Rp13,565 million,Rp6,550 million and Rp3,400 millionas at 31 December 2012, 2013 and2014, and Rp2,717 million as at 30June 2015 193,649 217,693 329,937 289,712 21,731

Prepaid taxes — 66 821 468 35Advances 23,198 44,311 42,543 16,107 1,208Current portion of prepaid expenses 3,230 8,477 18,347 20,048 1,504

TOTAL CURRENT ASSETS 513,287 639,823 888,634 1,133,368 85,011

NON-CURRENT ASSETSRestricted deposits 11,688 10,453 31,524 38,604 2,896Due from related parties 4,221 — — —Investment in Associates 2,996 44,550 42,925 37,816 2,836Deferred charges — — 4,820 14,309 1,073Fixed assets — net of accumulated

depreciation of Rp207,191 million,Rp272,127 million and Rp310,858million as at 31 December 2012, 2013and 2014, and Rp323,428 million asat 30 June 2015 444,097 618,304 870,052 958,829 71,919

Deferred tax assets 8,186 8,603 6,395 6,649 499Estimated claim for tax refund — — 9,445 9,445 708Prepaid expenses — net of current

portion 995 1,383 6,341 9,629 722Other non-current assets 1,517 1,864 3,245 6,132 460

Total Non-current Assets 473,700 685,157 974,747 1,081,413 81,114

TOTAL ASSETS 986,987 1,324,980 1,863,381 2,214,781 166,125

— 82 —

Our total assets increased by 18.9% to Rp2,214,781 million (US$166.1 million) as at 30 June 2015

from Rp1,863,381 million as at 31 December 2014, primarily due to an increase in our trade

receivables as a result of our increased sales during the Idul Fitri holiday season and an increase in

our fixed assets primarily resulting from land revaluation surplus.

Our total assets increased by 40.6% to Rp1,863,381 million as at 31 December 2014 from Rp1,324,980

million as at 31 December 2013 primarily due to increases in our trade receivables and inventories,

which were in line with our business growth, as well as an increase in our fixed assets primarily as

a result of land revaluation surplus.

Our total assets increased by 34.2% to Rp1,324,980 million as at 31 December 2013 from Rp986,987

million as at 31 December 2012, primarily due to an increase in our cash and cash equivalents

resulting from our operating activities and an increase in trade receivables as a result of our increased

sales as well as an increase in our fixed assets primarily as a result of land revaluation surplus.

Liabilities

The following table sets forth our total liabilities as at the dates indicated.

As at 31 December As at 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

CURRENT LIABILITIES

Short-term bank loans 253,475 265,201 546,504 586,205 43,970

Trade payables

Third parties 228,518 297,788 268,968 334,617 25,099

Related parties 44,987 120,611 157,227 114,851 8,615

Dividend payables 8,319 7,874 — —

Other payables — 7,452 8,481 7,221 542

Accrued expenses 6,946 29,445 50,048 85,722 6,430

Taxes payable 5,895 9,419 16,083 42,674 3,201

Advances from customers 464 2,065 1,278 907 68

Current portion of long-term liabilities

Bank loans 43,730 31,223 30,656 46,238 3,468

Consumer financing payables 6,847 5,837 2,343 1,229 92

Finance lease payables — 6,229 8,704 8,355 627

Total Current Liabilities 599,181 783,144 1,090,292 1,228,019 92,112

NON-CURRENT LIABILITIES

Due to related parties 8,088 11,117 — — —

Liabilities for employees’ benefits 17,884 15,821 39,972 45,588 3,419

Deferred tax liabilities — — 294 5,563 417

Long-term liabilities — net of currentportion

Bank loans 64,074 41,728 62,228 103,901 7,793

Consumer financing payables 4,916 2,083 1,743 1,379 103

Finance lease payables — 9,895 6,468 2,510 188

Total Non-Current Liabilities 94,962 80,644 110,705 158,941 11,922

TOTAL LIABILITIES 694,143 863,788 1,200,997 1,386,960 104,032

— 83 —

Our total liabilities increased by 15.5% to Rp1,386,960 million (US$104.0 million) as at 30 June 2015

from Rp1,200,997 million as at 31 December 2014, primarily due to increases in (i) short-term and

long-term bank loans to satisfy our increased working capital requirements as a result of our business

growth, (ii) trade payables as a result of our increased purchase of raw materials to meet our

production needs in anticipation of increased sales during the Idul Fitri holiday season, (iii) accrued

expenses resulting from our increased promotion activities and employees’ welfare, and (iv) tax

payables as a result of our increased taxable income.

Our total liabilities increased by 39.0% to Rp1,200,997 million as at 31 December 2014 from

Rp863,788 million as at 31 December 2013, primarily due to an increase in our short-term bank loans

to satisfy our increased working capital requirements as a result of our business growth.

Our total liabilities increased by 24.4% to Rp863,788 million as at 31 December 2013 from Rp694,143

million as at 31 December 2012, primarily due to an increase in our trade payables as a result of our

purchase of food products and an increase in our accrued expenses as a result of our increased

promotion efforts.

Equity

The following table sets forth our total equity as at the dates indicated.

As at 31 December As at 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

Equity Attributable to Owners of theParent Company

Share capital — par value Rp1 millionper shares

Authorised — 480,000 shares Issued

Issued and fully paid capital — 120,000shares as at 31 December 2014 and30 June 2015 and 65,000 shares as at31 December 2012 and 2013 65,000 65,000 120,000 120,000 9,001

Capital pro forma arising fromrestructuring transactions of entitiesunder common control (10,720) (31,361) — —

Additional paid-in capital — — (66,377) (66,377) (4,979)

Difference in value of transactions ofnon-controlling interest — — (1,966) (1,966) (147)

Other comprehensive income 154,812 296,310 409,992 434,956 32,625

Retained earnings

Unappropriated 82,831 130,606 199,453 315,918 23,696

Appropriated — — — 24,000 1,800

Sub Total 291,923 460,555 661,102 826,531 61,996

Non-controlling interest 921 637 1,282 1,290 97

TOTAL EQUITY — NET 292,844 461,192 662,384 827,821 62,093

— 84 —

Our total equity increased by 25.0% to Rp827,821 million (US$62.1 million) as at 30 June 2015 from

Rp662,384 million as at 31 December 2014, primarily as a result of increases in our retained earnings

and other comprehensive income resulting from land revaluation surplus.

Our total equity increased by 43.6% to Rp662,384 million as at 31 December 2014 from Rp461,192

million as at 31 December 2013, primarily as a result of an increase in issued and paid-up capital

resulting from the issuance of shares by our Company to PT Kino Investindo in June 2014, an increase

in other comprehensive income resulting from land revaluation surplus and an increase in our retained

earnings, partially offset by a decrease in additional paid-in capital resulting from the group

restructuring which represented the differences between the acquisition prices and the carrying value

of investments in DLS, KCM, KCP and KVC.

Our total equity increased by 57.5% to Rp461,192 million as at 31 December 2013 from Rp292,844

million as at 31 December 2012, primarily as a result of an increase in other comprehensive income

resulting from land revaluation surplus and an increase in our retained earnings, partially offset by the

pro forma adjustment arising from the group restructuring in 2014.

Liquidity and Capital Resources

Our primary sources of liquidity have historically been cash generated from operations and bank credit

facilities. Other than the proceeds of the Global Offering, we expect that cash generated from

operations and bank credit facilities will continue to be our primary sources of liquidity.

Cash Flow

The following table sets out a condensed summary of our cash flows for the periods indicated.

Year Ended 31 December Six Months Ended 30 June

(Rp in millions and US$ in thousands)

2012 2013 2014 2014 2015

(Rp) (Rp) (Rp) (Rp) (Rp) (US$)

Net cash provided by (usedfor) operating activities 30,889 183,780 (92,146) (84,375) 4,922 369

Net cash used for investingactivities (86,645) (98,408) (215,618) (85,731) (88,416) (6,632)

Net cash provided by (usedfor) financing activities 58,292 (34,646) 288,520 155,571 87,748 6,582

Net increase (decrease) incash and cash equivalents 2,536 50,726 (19,244) (14,535) 4,254 319

Effect of changes inexchange rate on cash andcash equivalents — 311 729 70 331 25

Cash and cash equivalentsfrom subsidiaries whenacquired — 2,367 — — — —

Cash and cash equivalents atbeginning of year/period 6,929 9,465 62,869 62,869 44,354 3,327

Cash and cash equivalents atend of year/period 9,465 62,869 44,354 48,404 48,939 3,671

— 85 —

Operating activities

Net cash provided by operating activities was Rp4,922 million (US$0.4 million) for the six monthsended 30 June 2015. In the six months ended 30 June 2015, we had payments received from customersof Rp1,441,557 million (US$108.1 million), partially offset by payments to suppliers of Rp869,337million (US$65.2 million), payments for selling, general and administrative expenses and otheroperating activities of Rp338,207 million (US$25.4 million), and payments to employees ofRp173,777 million (US$13.0 million).

Net cash used for operating activities was Rp92,146 million in 2014, primarily due to our businessgrowth. In 2014, we had payments to suppliers of Rp2,155,310 million, payments for selling, generaland administrative expenses and other operating activities of Rp733,194 million, and payments toemployees of Rp319,196 million, partially offset by payments received from customers ofRp3,195,148 million.

Net cash provided by operating activities was Rp183,780 million in 2013, primarily due to an increasein our sales. In 2013, we had payments received from customers of Rp2,278,421 million, partiallyoffset by payments to suppliers of Rp1,196,987 million and payments for selling, general andadministrative expenses and other operating activities of Rp653,983 million.

Net cash provided by operating activities was Rp30,889 million in 2012, primarily due to an increasein our sales. In 2012, we had payments received from customers of Rp1,657,800 million, partiallyoffset by payments to suppliers of Rp937,680 million and payments for selling, general andadministrative expenses and other operating activities of Rp497,522 million.

Investing activities

Net cash used in investing activities was Rp88,416 million (US$6.6 million) for the six months ended30 June 2015, and consisted primarily of buildings and machinery additions relating to our Cidahuplant. We added a production line and certain new machinery for beverage production in our Cidahuplant which was newly built in 2014.

Net cash used in investing activities was Rp215,618 million in 2014 and consisted primarily ofbuildings and machinery additions relating to our Cidahu, Cikembar, Pandaan and Cikande plants.

Net cash used in investing activities was Rp98,408 million in 2013 and consisted primarily ofRp58,516 million in machinery and vehicle additions relating to our Cikembar, Cikande, Pandaan andCidahu plants and the investment of Rp42,000 million in our associate company PT MKI.

Net cash used in investing activities was Rp86,645 million in 2012 and consisted primarily ofRp75,782 million in machinery additions relating to our Cikembar, Cikande and Pandaan plants andRp26,346 million in placement of restricted deposits.

Financing activities

Net cash provided by financing activities was Rp87,748 million (US$6.6 million) for the six monthsended 30 June 2015, primarily as a result of receipt of additional short-term bank loans of Rp751,672million (US$56.4 million), which was partially offset by the repayment of short-term bank loans ofRp711,971 million (US$53.4 million) .

Net cash provided by financing activities was Rp288,520 million in 2014, primarily as a result ofreceipt of additional short-term bank loans of Rp977,878 million, which was partially offset by therepayment of short-term bank loans of Rp696,575 million.

— 86 —

Net cash used for financing activities was Rp34,646 million in 2013, primarily as a result of payment

of short-term and long-term bank loans of Rp359,704 million, partially offset by the receipt ofadditional short-term bank loans of Rp327.700 million.

Net cash provided by financing activities was Rp58,292 million in 2012 primarily as a result of receiptof additional short-term bank loans of Rp281,902 million, partially offset by repayment of short-termbank loans of Rp216,541 million.

Working Capital and Indebtedness

We had net current liabilities of Rp85,894 million, Rp143,321 million, Rp201,658 million andRp94,651 million (US$7.1 million) as at 31 December, 2012, 2013 and 2014 and 30 June 2015. Thenet current liabilities were mainly due to the fact that our business operations have been expandingrapidly. The key components of our current assets include trade receivables, cash and cash equivalentsand inventories. The key components of our current liabilities include trade payables and borrowings.

We expect that our working capital needs will continue to be met by various funding sources,including cash from operating activities and bank loans from existing and/or new facilities. As at 30June 2015, we had Rp264,617 million (US$19.8 million) available to us under existing credit facilitiesthat had not been drawn, and had cash and cash equivalents of Rp48,939 million (US$3.7 million).

Taking into account our cash generated by operating activities and the estimated net proceeds from theGlobal Offering, we expect to have sufficient resources to meet our working capital and capitalexpenditure requirements for at least 12 months from the date of this Offering Circular.

As at 30 June 2015, we had total outstanding indebtedness of Rp749,817 million (US$56.2 million),which consisted of short-term or long-term bank loans, consumer financing payables and finance leasepayables. The following table sets forth details of our indebtedness as at the dates indicated.

As at 31 December As at 30 June

(Rp in millions and US$ in thousands)

2012 2013 2014 2015

(Rp) (Rp) (Rp) (Rp) (US$)

Short-term

Short-term bank loans 253,475 265,201 546,504 586,205 43,970

Current portion of long-term liabilities:

Bank loans 43,730 31,223 30,656 46,238 3,468

Consumer financing payables 6,847 5,837 2,343 1,229 92

Finance lease payables — 6,229 8,704 8,355 627

Sub-total 304,052 308,490 588,207 642,027 48,157

Long-term

Due to related parties 8,088 11,117 — — —

Long-term liabilities — net of currentportion:

Bank loans 64,074 41,728 62,228 103,901 7,793

Consumer financing payables 4,916 2,083 1,743 1,379 103

Finance lease payables — 9,895 6,468 2,510 188

Sub-total 77,078 64,823 70,439 107,790 8,085

Total 381,130 373,313 658,646 749,817 56,242

— 87 —

Bank borrowings

As at 31 December 2012, 2013 and 2014 and 30 June 2015, our outstanding bank borrowings were

Rp361,279 million, Rp338,152 million, Rp639,388 million and Rp736,343 million (US$55.2 million),

respectively. Our bank borrowings increased in 2012, 2013, 2014 and the six months ended 30 June

2015, primarily due to an increase in bank borrowings to satisfy our increased working capital

requirements as a result of our business expansion.

As at 31 December 2012, 2013 and 2014 and 30 June 2015, the average effective interest rates of our

short-term bank borrowings were 8.52-16.00%, 7.75-13.00%, 7.50-13.00% and 11.00-13.00%,

respectively, and the average effective interest rates of our long-term bank borrowings were

10.00-12.50%, 9.50-12.00%, 10.25-13.00% and 10.00-13.00%, respectively.

Our loan agreements with banks contain a number of covenants, undertakings, restrictions and default

provisions. Some of the loan agreements also require us to maintain certain financial ratios. See

“Material Contracts — Financing Agreements” for further details. As at 30 June 2015, none of our

borrowing banks had alleged a default by us under any of the provisions in the loan agreements in the

past three and a half years.

Due to related parties

Due to related parties represents loans received from our shareholders, PT Kino Investindo and Mr.

Harry Sanusi. These loans were agreed without interest rates, collateral or fixed repayment dates, and

were fully repaid in 2014.

Consumer financing payables

Consumer financing payables represents our payables to PT Bank Central Asia Tbk, PT Bank Index

Selindo, TC Capital Resources Sdn., Bhd., Malaysia and Public Bank Bhd., Malaysia for the purchase

of vehicles. Interest expenses on consumer financing payables were Rp1,349 million, Rp555 million,

Rp841 million and Rp134 million (US$0.01 million) for the years ended 31 December 2012, 2013,

2014 and the six months ended 30 June 2015, respectively.

Finance lease payables

Finance lease payables represent our payables to PT Dipo Star Finance, PT Orix Indonesia Finance,

PT BCA Finance and BPI Leasing Corp., Philippines for the purchase of vehicles. Interest expenses

on finance payables were nil, Rp1,135 million, Rp1,137 million and Rp648 million (US$0.05 million)

for the years ended 31 December 2012, 2013, 2014 and the six months ended 30 June 2015,

respectively.

Trade Receivables

Trade receivables mainly represent the balances due from our customers including local distributors,

wholesalers and retailers. Depending on the product and the credit worthiness of the customer, we

typically provide credit terms of between 14 days and 45 days to our customers but occasionally we

provide terms of up to 60 days. Overseas sales are made against cash payment.

— 88 —

The following table sets forth the aging schedule of our trade receivables as at the dates indicated.

As at 31 December As at 30 June

(Rp in millions and US$ in thousands)

2012 2013 2014 2015

(Rp) (Rp) (Rp) (Rp) (US$)

Third parties:

Current 163,138 127,672 376,852 607,651 45,578

Overdue:

1 — 30 days 68,644 150,501 42,712 75,174 5,639

31 — 60 days 7,316 15,599 10,287 45,481 3,411

61 — 90 days 3,718 2,544 6,943 15,227 1,142

More than 90 days 6,595 14,551 17,805 17,856 1,339

Subtotal 249,411 310,867 454,599 761,389 57,109

Less allowance for impairment losses oftrade receivables (1,294) (8,930) (8,760) (9,112) (683)

Net 248,117 301,937 445,839 752,277 56,426

Related parties*:

Current 3,573 — — — —

Overdue:

1 — 30 days 9,369 — — — —

31 — 60 days 3,017 — — — —

61 — 90 days 1,137 — — — —

More than 90 days 16,654 — — — —

Subtotal 33,750 — — — —

Total 281,867 301,937 445,839 752,277 56,426

Note:

* The balance of the trade receivables as at 31 December 2012 represented sales of personal care products to KCP and

KCM.

Our trade receivables increased year-on-year from Rp281,867 million as at 31 December 2012 to

Rp301,937 million as at 31 December 2013, to Rp445,839 million as at 31 December 2014, and to

Rp752,277 million (US$56.4 million) as at 30 June 2015. The increases were primarily attributable to

the continued increases in our sales in the past three and a half years.

Our turnover for trade receivables (calculated based on average trade receivables (based on trade

receivables at the beginning and end of the period divided by two), divided by sales over 360 days,

with sales for the six month periods annualised), was 56 days for 2012, 46 days for 2013, 40 days for

2014, and 62 days for the six months ended 30 June 2015. The turnover days for our trade receivables

decreased in 2012, 2013 and 2014 primarily due to our improved management of our trade receivables.

The turnover days for our trade receivables increased to 62 days in the six months ended 30 June 2015

primarily because of our delayed collection of trade receivables during the Idul Fitri holiday season.

We did not take any measures to lower the turnover days as such seasonal fluctuation was temporary

and commonly seen in previous years. See “— Seasonality” below.

— 89 —

We have evaluated the credit situation of our specific customers to which our trade receivables relate.

As at 31 December 2012, 2013, 2014 and 30 June 2015, we made provisions for impairment of trade

receivables in the amount of Rp1,294 million, Rp8,930 million, Rp8,760 million and Rp9,112 million

(US$0.7 million) respectively, representing 0.5%, 3.0%, 2.0% and 1.2% of our trade receivables for

the respective date. Based on the review of the status of the individual receivable at the end of each

period, we believe that the allowance for impairment losses is adequate to cover any possible losses

on uncollectible trade receivables in the future. We do not have a general provisioning policy for

doubtful debts. We make specific provisions when we are of the view that the collection of an

outstanding debt is doubtful. We believe that our credit management and policies on making

provisions are appropriate.

Trade Payables

Trade payables mainly represent the balances due to our suppliers of raw materials to which we are

generally granted credit terms ranging from 30 to 90 days. The following table sets forth the aging

schedule of our trade payables as at the dates indicated.

As at 31 December As at 30 June

2012 2013 2014 2015

(Rp in millions and US$ in thousands)

(Rp) (Rp) (Rp) (Rp) (US$)

Third parties:

Current 105,620 218,302 227,424 205,368 15,404

Overdue:

1 — 30 days 93,515 66,107 36,961 100,528 7,540

31 — 60 days 9,032 7,638 3,642 22,585 1,694

61 — 90 days 558 411 941 1,965 147

More than 90 days 19,793 5,330 — 4,171 313

Total 228,518 297,788 268,968 334,617 25,099

Related parties*:

Current 11,834 65,666 155,952 99,074 7,431

Overdue:

1 — 30 days 13,228 54,945 1,275 5,749 431

31 — 60 days 3,485 — — 10,028 752

61 — 90 days 3,086 — — — —

More than 90 days 13,354 — — — —

Total 44,987 120,611 157,227 114,851 8,615

Total Trade Payables 273,505 418,399 426,195 449,468 33,713

Note:

* The balances of the trade payables represented payables in connection with the purchase of inventories from PT KSI and

PT MKI.

Our trade payables increased by 5.5% to Rp449,468 million (US$33.7 million) as at 30 June 2015 from

Rp426,195 million as at 31 December 2014. The increase was primarily due to our increased purchase

of raw materials to satisfy our production needs in anticipation of increased sales during the Idul Fitri

holiday season.

— 90 —

Our trade payables increased by 1.9% to Rp426,195 million as at 31 December 2014 from Rp418,399

million as at 31 December 2013. The increase was primarily attributable to our increased purchase of

raw materials to satisfy our production needs and our increased purchase of food products from PT

MKI in 2014.

Our trade payables increased by 53.0% to Rp418,399 million as at 31 December 2013 from Rp273,505

million as at 31 December 2012. The increase was primarily attributable to our increased purchase of

food products from PT MKI in November and December 2013.

Our turnover for trade payables (calculated based on average trade payables (based on trade payables

at the beginning and end of the period divided by two), divided by cost of goods sold over 360 days,

with cost of goods sold for the six months periods annualised) was 87 days for 2012, 92 days for 2013,

69 days for 2014, and 78 days for the six months ended 30 June 2015. The decrease in our turnover

days for trade payables in 2014 was primarily a result of our renegotiation of contract terms with our

suppliers. We agreed to provide quicker payments to some of our raw material suppliers in exchange

for better prices. The increase in our turnover days for trade payables to 78 days in the six months

ended 30 June 2015 was primarily due to longer payment periods we negotiated with certain of our

suppliers as a result of our increased purchases from them.

Inventories

Our inventories comprise raw materials (including packaging materials), work in process and finished

goods. The following table sets forth our inventories as at the dates indicated, pertaining to the

movement of allowance for impairment and obsolescence of inventories.

December As at 30 June

2012 2013 2014 2015

(Rp in millions and US$ in thousands)

(Rp) (Rp) (Rp) (Rp) (US$)

Raw material 115,066 107,776 139,784 140,345 10,527

Work in process 3,741 4,648 5,219 6,335 475

Finished goods 88,407 111,819 188,334 145,749 10,932

Total 207,214 224,243 333,337 292,429 21,934

Less allowance for impairment andobsolescence of inventories (13,565) (6,550) (3,400) (2,717) (204)

Net 193,649 217,693 329,937 289,712 21,731

Balance at the beginning of theyear/period 5,207 13,565 6,550 3,400 255

Balance of subsidiaries on acquisition — 241 — —

Allowance for impairment andobsolescence of inventories forcurrent year/period 13,565 6,266 3,084 2,093 157

Write-off of obsolete inventories (5,207) (13,565) (6,240) (2,999) (225)

Net effect of difference in foreigncurrency translation adjustment — 43 6 223 17

Total allowance for impairment andobsolescence of inventories 13,565 6,550 3,400 2,717 204

— 91 —

Our inventories decreased by 12.3% to Rp292,429 million (US$21.9 million) as at 30 June 2015 from

Rp333,337 million as at 31 December 2014. The decrease was primarily due to a decrease in finished

goods as we sold more finished goods than we produced in the six months ended 30 June 2015.

Our inventories increased by 48.6% to Rp333,337 million as at 31 December 2014 from Rp224,243

million as at 31 December 2013. The increase was primarily due to increases in both raw materials

and finished goods as a result of our business growth.

Our inventories increased by 8.2% to Rp224,243 million as at 31 December 2013 from Rp207,214

million as at 31 December 2012. The increase was primarily due to an increase in finished goods. The

increase in the finished goods was primarily due to DLS’s purchase of food products from PT MKI

in November and December of 2013.

Our allowance for impairment and obsolescence of inventories decreased from Rp13,565 million as at

31 December 2012 to Rp6,550 million as at 31 December 2013, to Rp3,400 million as at 31 December

2014, and further to Rp2,717 million (US$0.2 million) as at 30 June 2015, primarily due to our

enhanced management of our inventories. Based on the review of the status of inventories at the end

of each period, our management believes that our allowance for impairment and obsolescence of

inventories is adequate to cover any possible losses from decline in market values of inventories. Our

allowance for impairment and obsolescence of inventories is estimated based on the applicable facts

and circumstances including, but not limited to, the physical condition of our inventories, the market

price, the estimated completion cost and the estimated cost of selling the inventories.

Our total inventory turnover days (calculated based on average inventories (based on inventories at

the beginning and end of the period divided by two), divided by cost of sales over 360 days, with cost

of sales for the six month periods annualised) was 59 days for 2012, 55 days for 2013, 45 days for

2014, and 55 days for the six months ended 30 June 2015. Our inventory turnover days decreased from

59 days in 2012 to 55 days in 2013 and further decreased to 45 days was primarily due to our enhanced

management of our inventories. The increase in our inventory turnover days to 55 days in the six

months ended 30 June 2015 was primarily due to our increased purchase of raw materials in

anticipation of increased sales during the Idul Fitri holiday season.

Material Contractual Obligations

The following table sets forth information regarding our actual material contractual obligations and

commitments as at 30 June 2015.

Payment Due by Period

Less than 1

Year 1 — 2 Years 3 — 5 Years

More Than 5

Years Total

(In millions of Rp)

Long-term bank loans 46,238 35,986 67,915 — 150,139

Consumer financing payables 1,229 1,379 — — 2,608

Finance lease payables 8,355 2,488 22 — 10,865

Total 55,822 39,853 67,937 — 163,612

Off-Balance Sheet Arrangements and Contingent Liabilities

As at 30 June 2015, we did not have any off-balance sheet arrangements or contingent liabilities.

— 92 —

Capital Expenditures

We regularly make capital expenditures to expand our operations, maintain our equipment andincrease our operating efficiency. The majority of our capital expenditures during the past three anda half years have been related to fixed asset additions. The following table sets forth our historicalcapital expenditures for the periods indicated:

As at 31 December As at 30 June

2012 2013 2014 2015

(Rp millions) (Rp millions) (Rp millions) (Rp millions) (US$ 000)

Land — 6,358 5,154 — —

Buildings 11,801 7,722 73,781 16,787 1,259

Vehicles 10,922 3,848 3,986 1,265 95

Office equipment 12,494 11,068 12,822 1,892 142

Machineries 48,124 26,922 86,687 35,102 2,633

Assets in progress —

Machineries 1,807 2,391 — 19,842 1,488

Buildings — — — 6,162 462

Finance lease-Vehicles — 21,611 7,897 568 43

Total Capital Expenditure 85,148 79,920 190,327 81,618 6,122

Our capital expenditure increased from Rp79,920 million in 2013 to Rp190,327 million in 2014primarily because we were in the final stages of constructing our Cidahu plant for beverage productionand purchased new machinery for this plant in 2014.

Our planned capital expenditures are expected to be approximately Rp56 billion (US$4.2 million) forthe six months ended 31 December 2015, primarily relating to machinery and buildings. For 2016, weestimate capital expenditures of approximately Rp402 billion (US$30.2 million), primarily consistingof Rp350 billion (US$26.3 million) for machinery. These figures are budgeted figures only and aresubject to revisions by us.

Seasonality

Our sales and profits can fluctuate during the course of a financial year due to a number of factorsincluding holiday seasons. Our beverages division which generally experiences lower sales due toweather conditions during the months of January, February and March. During holiday seasons, ourfood and beverage products generally experience an increase in demand. However, long holidayseasons may also negatively impact our business and results of operations. For example, productionand delivery will be adversely impacted during the fasting month of Ramadan and the Muslim holidayof Lebaran when working days are substantially less than in a normal month. As the dates for theseperiods depend on the sighting of the moon, there may be yearly variations of such dates. Suchseasonal variations may cause fluctuations in our interim sales and profits, as well as our inventorylevels, trade receivables and bills payables. As a result, our results of operations may fluctuate withina financial year and our interim results may not proportionately reflect our annual results.

Market Risks

We are exposed to various types of market risks in the ordinary course of business, includingfluctuations in foreign exchange rates and interest rates. Historically, we have not used derivatives tohedge against exposures to market risks or for any other purposes.

— 93 —

Exchange Rate Risk

Currency risk is the risk in terms of fair value or future cash flows that the value of a financial

instrument will fluctuate because of changes in foreign currency exchange rates. Our exposure to

exchange rate fluctuations arises from cash and cash equivalents, trade receivables, other receivables,

other non-current asset, restricted deposits, trade payables, accrued expenses, other payables,

consumer financing payables and finance lease payables in foreign currency.

As at the balance sheet date, we convert all foreign currency monetary assets and liabilities into

Rupiah at the average of the buying and selling rates of exchange published by Bank Indonesia at the

last banking transaction date of the period. We recognise the resulting net foreign exchange gains or

losses in the current period’s statement of income. We reported a net foreign exchange loss of Rp3,175

million in 2012, Rp11,751 million in 2013, Rp4,293 million in 2014 and Rp5,145 million (US$0.4

million) for the six months ended 30 June 2015.

Interest Rate Risk

Interest rate risk is the risk in terms of fair value or future contractual cash flows that the value of

a financial instrument will be affected due to changes in market interest rates. Our exposure to interest

rate risk is mainly related to cash in banks, restricted deposits, short-term bank loans, consumer

financing payables, finance lease payables and long-term bank loans.

Our bank borrowings consist of variable rate debt obligations linked to applicable bank rates. Bank

rates are typically reviewed and adjusted periodically in accordance with prevailing interest rates.

Increases in interest rates would increase interest expenses relating to our outstanding floating rate

borrowings and increase the cost of new debt.

Credit Risk

We are exposed to credit risks arising from our operating activities and from our financing activities,

including deposits with banks, foreign exchange transactions, and other financial instruments. Credit

risks arise mainly from trade receivables from customers and other receivables.

Credit risks arise from trade receivables and other receivables managed by our management in

accordance with the policies, procedures, and our control relating to customer credit risk management

and other receivables. Credit limits are determined for all customers based on internal assessment

criteria. We regularly monitor the balance of customer receivables. We conduct business relationships

only with recognised and credible parties. We implement policies to go through customer credit

verification procedures. In addition, we monitor the amounts of receivables continuously to reduce the

risk of impairment.

Liquidity Risk

Liquidity risk is the risk that we are unable to meet our obligations when they are due. We evaluate

and monitor cash inflows and cash outflows to ensure the availability of funds to settle due

obligations. In general, the funds needed for settlement of current and long-term liabilities are

obtained from sales to customers.

— 94 —

RECENT DEVELOPMENTS

The following discussion and analysis and selected unaudited consolidated financial information andother data should be read in conjunction with “Management’s Discussion and Analysis of FinancialCondition and Results of Operations” in this Offering Circular. The selected unaudited consolidatedfinancial information for the eight months ended 31 August 2015 has been reviewed by Kosasih,Nurdiyaman, Tjahjo & Rekan (a member firm of Crowe Horwath International), independent publicaccountants, in accordance with SRE 2410 “Review of Interim Financial Information Performed bythe Independent Auditor of the Entity” established by the IICPA. Results for interim periods are notnecessarily indicative of results for the full fiscal year.

Our consolidated financial statements have been prepared in accordance with Indonesian FAS.Indonesian FAS differs in certain material respects from IFRS. For a summary of certain differencesbetween Indonesian FAS and IFRS, see “Summary of Certain Differences Between Indonesian FAS andIFRS”.

Results of Operations

We are providing the following discussion on our results of operations for the eight months ended 31August 2014 and 2015 to give investors further information regarding our business and results ofoperations in 2015.

The following table sets out the results of our operations for the periods indicated.

Eight Months

ended 31

August 2014

Eight Months ended

31 August 2015

(Rp millions) (Rp millions) (US$ 000)

(Unaudited) (Unaudited)

Sales 2,105,215 2,277,539 170,833Cost of sales 1,356,630 1,335,243 100,153

Gross profit 748,585 942,296 70,679

Selling expenses (498,020) (499,428) (37,461)General and administrative expenses (141,723) (171,974) (12,899)Interest expenses (35,618) (57,477) (4,311)Gain (loss) on foreign exchange 1,193 (8,018) (601)Share in net earning (losses) in Associates (560) (6,368) (478)Bank administration expenses (1,921) (2,446) (183)Gain on sale of fixed assets 1,642 1,847 139Interest income 716 1,496 112Gain on sale of scrap 1,102 1,002 75Others — net 5,671 8,844 663

Income before income tax expenses — net 81,067 209,774 15,735Income tax expenses — net (23,482) (52,535) (3,941)

Current period income before effect of prop formaadjustment 57,585 157,239 11,794

Effect of pro forma adjustment on current period income 1,292 — —Current period income 58,877 157,239 11,794Other comprehensive income (expenses) (8,797) 23,768 1,783Comprehensive income before effect of pro forma

adjustment on other comprehensive income 50,080 181,007 13,577Effect of Pro forma adjustment on other

comprehensive income 2,597 — —

Comprehensive income 52,678 181,007 13,577

— 95 —

Comparison of Results of Operations

Below is a discussion and analysis of our results of operations for the eight months ended 31 August2015 compared to the eight months ended 31 August 2014.

Sales

Our sales increased by Rp172,324 million (US$12.9 million), or 8.2%, to Rp2,277,539 million(US$170.8 million) in the eight months ended 31 August 2015 from Rp2,105,215 million in the eightmonths ended 31 August 2014:

Personal care. Total sales for our personal care division increased by Rp 158,303 million (US$11.9million), or 16.6%, to Rp1,109,644 million (US$83.2 million) in the eight months ended 31 August2015 from Rp951,341 million in the eight months ended 31 August 2014. This increase was primarilydue to (i) our increased access to direct and indirect outlets, and (ii) the addition of 33 new SKUsacross different personal care product categories.

Beverages. Total sales for our beverages division increased by Rp 121,498 million (US$9.1 million),or 17.2%, to Rp829,215 million (US$62.2 million) in the eight months ended 31 August 2015 fromRp707,717million in the eight months ended 31 August 2014. This increase was primarily due to (i)our increased access to direct and indirect outlets, (ii) an increase in the average selling price ofcertain beverages, and (ii) the addition of four new SKUs across different beverage product categories.

Food. Total sales for our food division decreased by Rp105,542 million (US$7.9 million), or 23.9%,to Rp335,485 million (US$25.2 million) in the eight months ended 31 August 2015 from Rp441,027million in the eight months ended 31 August 2014. This decrease was primarily due to the reducedmarket demand for food products in the eight months ended 31 August 2015.

Pharmaceuticals. Total sales for our pharmaceutical division decreased by Rp1,935 million(US$145,140), or 37.7%, to Rp3,194 million (US$239,574) in the eight months ended 31 August 2015from Rp5,129 million in the eight months ended 31 August 2014. This decrease was primarily due tothe reduced market demand for pharmaceutical products in the eight months ended 31 August 2015.

Cost of sales

Our cost of sales decreased by Rp21,387 million (US$1.6 million), or 1.6%, to Rp1,335,243 million(US$100.2 million) in the eight months ended 31 August 2015 from Rp1,356,630 million in the eightmonths ended 31 August 2014 primarily because (i) the costs of packaging materials (mainlyaluminum cans) for our personal care products decreased as we successfully renegotiated betterpricing terms with our suppliers in exchange for quicker payments, (ii) DLS reduced its purchase offood products from PT MKI as the market demand reduced in the eight months ended 31 August 2015,and (iii) our depreciation costs decreased as a result of the change in the depreciation method andestimation of useful life of fixed assets of our Company and DLS.

Gross Profit

As a result of the foregoing, our gross profit increased by Rp193,711 million (US$14.5 million), or25.9%, to Rp942,296 million (US$70.7 million) in the eight months ended 31 August 2015 fromRp748,585 million in the eight months ended 31 August 2014. Our gross profit as a percentage of oursales increased to 41.4% in the eight months ended 31 August 2015 from 35.6% in the eight monthsended 31 August 2014 primarily due to (i) higher sales contribution from personal care products whichgenerally have higher gross profit margins than other products, and (ii) lower cost of sales asdiscussed above.

— 96 —

Selling Expenses

Our selling expenses increased by Rp1,408 million (US$105,611), or 0.3%, to Rp499,428 million(US$37.5 Million) in the eight months ended 31 August 2015 from Rp498,020 million in the eightmonths ended 31 August 2014 primarily due to increases in salaries of our marketing and salespersonnel, rental and transportation expenses.

General and Administrative Expenses

Our general and administrative expenses increased by Rp30,251 million (US$2.3 million), or 21.3%,to Rp171,974 million (US$12.9 million) in the eight months ended 31 August 2015 from Rp141,723million in the eight months ended 31 August 2014 primarily due to an increase in salaries, wages andallowances for our management and general and administrative personnel as a result of our businessexpansion, as well as increases in our rental expenses, depreciation and employee benefit expenses.

Interest Expenses

Our interest expenses increased by Rp21,859 million (US$1.6 million), or 61.4%, to Rp57,477 million(US$4.3 million) in the eight months ended 31 August 2015 from Rp35,618 million in the eight monthsended 31 August 2014 primarily due to higher average balances of short-term and long term bankborrowings.

Loss on Foreign Exchange — Net

Our loss on foreign exchange — net was Rp8,018 million (US$601,410) in the eight months ended 31August 2015 compared to a gain on foreign exchange — net of Rp1,193 million in the eight monthsended 31 August 2014. The increase in loss on foreign exchange — net was primarily due to theRupiah’s weakening against the U.S. Dollar in the eight months ended 31 August 2015.

Bank Administration Expenses

Our bank administration expenses increased by Rp525 million (US$39,379) to Rp2,446 million(US$183,468) in the eight months ended 31 August 2015 from Rp1,921 million in the eight monthsended 31 August 2014 primarily due to higher average balances of bank borrowings.

Share of Loss in Associates

Our share of loss in associates was Rp6,368 million (US$477,648) in the eight months ended 31August 2015 as compared to a loss of Rp560 million in the eight months ended 31 August 2014 dueto increased losses incurred in PT MKI as a result of its decreased sale of food products caused byreduced market demand in the eight months ended 31 August 2015.

Gain on Sale of Fixed Assets

Our gain on sale of fixed assets increased by Rp205 million (US$15,376) to Rp1,847 million(US$138,539) in the eight months ended 31 August 2015 from Rp1,642 million in the eight monthsended 31 August 2014 primarily due to our sale of vehicles in the eight months ended 31 August 2015.

Gain on Sale of Scrap

Our gain on the sale of scrap decreased by Rp100 million (US$7,500) to Rp1,002 million (US$75,157)in the eight months ended 31 August 2015 from Rp1,102 million in the eight months ended 31 August2014. This decrease was primarily because we sold less scrap materials in the eight months ended 31August 2015.

— 97 —

Interest Income

Our interest income increased by Rp780 million (US$58,581) to Rp1,496 million (US$112,211) in the

eight months ended 31 August 2015 from Rp716 million in the eight months ended 31 August 2014

primarily due to higher average balances of cash in banks and time deposits.

Others — Net

Others — net stood at Rp8,844 million (US$663,317) in the eight months ended 31 August 2015

compared to Rp5,671 million in the eight months ended 31 August 2014, primarily due to an increase

in the rebates we received from our suppliers and insurance claim income in the eight months ended

31 August 2015.

Income Tax Expenses — Net

Our total income tax expenses — net increased by Rp29,053 million (US$2.2 million) to Rp52,535

million (US$3.9 million) in the eight months ended 31 August 2015 from Rp23,482 million in the eight

months ended 31 August 2014 primarily due to an increase in our taxable income in the eight months

ended 31 August 2015.

Current Period Income

As a result of the foregoing, our current period income increased by Rp98,361 million (US$7.6

million) to Rp157,239 million (US$11.8 million) in the eight months ended 31 August 2015 from

Rp58,878 million in the eight months ended 31 August 2014. Our current period income as a

percentage of sales increased to 6.9% for the eight months ended 31 August 2015 from 2.6% for the

eight months ended 31 August 2014.

Other Comprehensive Income (Expense)

Our other comprehensive income increased to Rp23,768 million (US$1.8 million) in the eight months

ended 31 August 2015 from other comprehensive expense of Rp8,797 million in the eight months

ended 31 August 2014 primarily due to an increase in revaluation surplus from land in the eight

months ended 31 August 2015.

Comprehensive Income

As a result of the foregoing, our comprehensive income increased by Rp128,329 million (US$9.6

million) to Rp181,007 million (US$13.6 million) in the eight months ended 31 August 2015 from

Rp52,678 million in the eight months ended 31 August 2014.

— 98 —

INDUSTRY OVERVIEW

The information that appears in this section has been prepared by Euromonitor International Limitedand The Nielsen Company Indonesia. The information from Euromonitor International Limited reflectsits estimates of market conditions based on publicly available sources and trade opinion surveys, andis prepared primarily as a market research tool. References to Euromonitor International Limitedshould not be considered as the opinion of Euromonitor International Limited as to the value of anysecurity or the advisability of investing in the Company. The information from The Nielsen CompanyIndonesia reflects estimates of market conditions based on samples and is prepared primarily as amarketing research tool for consumer packaged goods manufacturers and others in the consumergoods industry. This information should not be viewed, interpreted or relied upon as a basis forinvestments and references to The Nielsen Company Indonesia should not be considered as its opinionor endorsement as to the value of any security or the advisability of investing in the company.

The Directors believe that the sources of information contained in this Industry Overview areappropriate sources for such information and have taken reasonable care in reproducing suchinformation. The Directors have no reason to believe that such information is false or misleading orthat any material fact has been omitted that would render such information false or misleading. Theinformation prepared by Euromonitor International Limited and set out in this Industry Overview hasnot been independently verified by the Group, the Selling Shareholder, the Joint Global Coordinatorsand Joint Bookrunners, the Joint International Selling Agents, the Joint Domestic Lead Underwritersor any other party involved in the Global Offering and neither they nor Euromonitor InternationalLimited give any representations as to its accuracy and the information should not be relied upon inmaking, or refraining from making, any investment decision.

Research Background

Research Objective

The Company is planning an initial public offering on Indonesia Stock Exchange and requires anindependent assessment of the market for the personal care and beverages industry in Indonesia, withThailand, Philippines and Malaysia as an industry benchmark in the form of an Industry Overviewreport.

Sources of the Industry Information

This section contains information extracted from a commissioned research report, or the EuromonitorReport, prepared by Euromonitor International for the purposes of this prospectus. The report was lastupdated in August 2015 based on data available at the time of publishing.

Research Methodologies

In compiling and preparing the Euromonitor Report, Euromonitor International used the followingmethodologies to collect multiple sources, validate the data and information collected, andcross-check each respondent’s information and views against those of others:

• Secondary research, which involved reviewing published sources including Nationalstatistics and official sources such as Badan Pusat Statistik, specialist trade press andassociations such as Asosiasi Pengusaha Ritel Indonesia, company reports includingaudited financial statements where available, independent research reports, and data basedon Euromonitor International’s own research database;

• Primary research which involved interviews with a sample of leading industry participantsand industry experts for latest data and insights on future trends and to verify and crosscheck the consistency of data and research estimates;

— 99 —

• Projected data were obtained from historical data analysis plotted against macroeconomicdata with reference to specific industry-related drivers; and

• Review and cross-checks of all sources and independent analysis to build all final estimatesincluding the size, shape, drivers and future trends of the personal care, beverages,confectionery, and pharmaceutical product markets and prepare the final report.

Forecasting Bases and Assumptions

Euromonitor International based the Euromonitor Report on the following assumptions:

• The Indonesian economy is expected to maintain steady growth over the forecast period;

• The social, economic, and political environment of Indonesia is expected to remain stablein the forecast period;

• There will be no external shock, such as financial crisis or raw material shortage that affectsthe demand and supply of personal care, beverages, confectionery, and pharmaceuticalproducts in Indonesia during the forecast period;

• Key market drivers such as increase in per capita disposable income, rapid urbanization,low per capita consumption compared to benchmarked countries, rising health awareness,and improved distribution network are expected to boost the development of the personalcare, beverages, confectionery and pharmaceutical product markets in Indonesia; and

• Key drivers including increasing disposable income of Indonesians, rising middle class, andrising health awareness among consumers is likely to drive the future growth of thepersonal care, beverages, confectionery and pharmaceutical product markets.

The research results may be affected by the accuracy of these assumptions and the choice of theseparameters. The market research was completed in August 2015 and all statistics in the Euromonitorreport are based on information available at the time of reporting. Euromonitor’s forecast data comesfrom analysis of historic development of the market, the economic environment and underlying marketdrivers, and is cross-checked against established industry data and trade interviews with industryexperts.

About Euromonitor

Established in 1972, Euromonitor International is the world leader in strategy research for bothconsumer and industrial markets. Comprehensive international coverage and leading edge innovationmake our products an essential resource for companies large and small, national and global. Withoffices around the world and analysts in 80 countries, the company is a leading provider of globalmarket intelligence. Our products and services are held in high regard by the international businesscommunity and we have 5,000 active clients including 90% of the Fortune 500 companies.

In this section, data relating to the FMCG industry in Southeast Asia, in particular, Indonesia, andother statistics, including information relating to the Group in the FMCG industry has been included.This information is based on a combination of industry research and information gathered byEuromonitor International and The Nielsen Company Indonesia data. Whilst reasonable care has beentaken to ensure that the information is extracted accurately and in its proper context, we, the JointInternational Selling Agents and the Joint Domestic Lead Underwriters, have not independentlyverified any of the data from third parties contained in this Offering Circular.

— 100 —

Overview of the Indonesia Economy

Positive economic outlook

The current economic outlook is positive with the International Monetary Fund (“IMF”) expecting thatreal Gross Domestic Product (“GDP”) will recover following a slowdown in 2013 and 2014 due tolower foreign investment and sluggish external demand curtailing growth. During the historic periodof 2010 — 2014, Indonesia’s economy witnessed moderate growth of 4.1% CAGR, with the economygrowing to US$889 billion by year end 2014. Growth during the historic period was fuelled by privateconsumption, foreign direct investment and domestic investment.

755893 919 913 889 896 952 1,037 1,117 1,207 1,307

2010 -2014 CAGR: 4.1% : 7.8%

Chart 1: Real GDP, constant prices (US$ billion)

2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E 2019E 2020E

2015E - 2020E CAGR

Source: International Monetary Fund

The IMF predicts that Indonesia’s GDP will make a full recovery by 2017, and grow moderately by7.8% CAGR from 2015 to 2020 with GDP growing to US$1,307 billion by 2020. The moderate outlookfor the Indonesian economy is in-line with the Government’s goals of stabilizing the economy viacontrolling inflation and encouraging foreign investment and capital flow. In the near term, outlookis expected to remain flat with the weakening Indonesian Rupiah still threatening business confidenceand private sector investment. A focus on infrastructure spending, will drive GDP growth in the longterm, with a direct multiplier effect spreads across private consumption, whilst reigniting businessconfidence and encouraging investment. Ratings agencies, S&P and Moody’s have acknowledged thehealthy fundamentals of the economy, albeit with some risks, affording Indonesia country ratings ofBB+ and Baa3 on the back of the large scale and diversity of the economy, attractive governmentpolicies despite some execution risk and favourable demographics.

Growing consumer expenditure supported by attractive economic fundamentals such as risingdisposable income and a young urban population

According to Euromonitor International, consumer expenditure in Indonesia has experienced healthygrowth of 11.8% CAGR from 2010 — 2014 due to rising disposable income and supportive populationdemographics.

3,873 4,357 4,873 5,471 6,050

2010 2011 2012 2013 2014

Chart 2: Consumer expenditure (IDR trillion)

CAGR 2010 –2014: 11.8%

Source: Euromonitor International — Economies and Consumers 2015 Edition

Indonesia’s burgeoning middle class and rising young and urban population will continue to drive theconsumer industry moving forward as spending power increases as well as exposure to a greaterspectrum of products. Discretionary products such as personal care products have largely benefittedfrom Indonesia’s evolving population demographic and rise in disposable income. According to

— 101 —

Euromonitor International, growth in consumer expenditure on personal care products outperformed

overall consumer expenditure growth with 12.4% CAGR from 2010 — 2014 and consumer expenditure

on non-alcoholic beverages and food demonstrated robust growth of 11.6% and 11.5% CAGR,

respectively over the same period.

11.8%

12.4%

11.6% 11.5%

Chart 3: Consumer expenditure (2010 –2014 CAGR %)

Total consumer expenditure Personal care Non-alcoholic beverages Food

Source: Euromonitor International — Economies and Consumers 2015 Edition

Burgeoning middle class with rising personal disposable income

Indonesia’s strong economic growth over the past decade has created a burgeoning middle class with

greater purchasing power. According to Euromonitor International, the middle income population,

defined as households with between US$7,501 and US$45,000 income per annum, represents ~40% of

total households in 2014 has grown by ~5% CAGR over the period of 2010 to 2014. Total disposable

income per capita has also increased by 10.8% CAGR over the same period. The middle income

population is expected to grow, with the World Bank forecasting this population segment to represent

80% of Indonesia’s total population by 2030, providing a strong foundation for future consumption

growth, particularly for discretionary products such as fast moving consumer goods.

64.1% 58.9%

34.5% 39.5%

1.4% 1.6%

2010 2014

< US$ 7,500 US$7,501 - US$ 45,000 > US$45,001

Chart 4: Income split

16,85318,772

20,82523,167

25,397

2010 2011 2012 2013 2014

Chart 5: Disposable income per capita (IDR ‘000)

CAGR 2010 – 2014: 10.8%

Source: Euromonitor International — Economies

and Consumers 2015 Edition

Source: Euromonitor International — Economies

and Consumers 2015 Edition

Young and urban population

According to Euromonitor International, Indonesia had a population of 250 million people at the

end-2014, with a healthy and competitive demographical structure. Indonesia’s large young

population, with 86.8% of Indonesia’s total population under the age of 55, ensures stable economic

and consumption growth in the medium term and underpin economic growth as one of the largest

consumer markets in the world.

— 102 —

Urbanization will further contribute to the economic and consumption growth. The urbanization trendwill result in a more concentrated population pattern benefiting from more convenient access tovarious sales channels in the developed urban areas thereby increasing accessibility to products. With54.4% of the total population in Indonesia still living in rural areas, Indonesia is expected to see a highrate of urbanization moving forward as younger Indonesians migrate to urban areas due to bettercareer prospects.

25.8%

61.0%

13.2%

Chart 6: Population age split (2014)

0 -14 years

15 -54years

55+ years

45.6%

54.4%

Chart 7: Total population split (2014)

Urban

Rural

Source: Euromonitor International — Economies

and Consumers 2015 Edition

Source: Euromonitor International — Economies

and Consumers 2015 Edition

Personal Care in Indonesia

According to Euromonitor International, personal care comprises of baby and child-specific products,bath & shower, deodorants, hair care, colour cosmetics, men’s grooming, oral hygiene, fragrances,skin care, depilatories, sun care and sets/kits. The personal care retail market industry in Indonesia hasbeen reaping the benefits of strong economic performance, rising disposable income, growing urbanpopulation and budding female workforce with personal care retail market size growing at a CAGRof 16.0% to IDR49,444 billion in 2014.

Strong growth in the sector is expected to increase moving forward underpinned by the growingimportance of personal image, personal hygiene, the pursuit of beauty as Indonesians gain exposureto new lifestyle trends and rising disposable income with Euromonitor International expecting theindustry to grow by 17.2% CAGR from 2015 to IDR79,637 billion in 2017.

27,281 31,096 35,867 41,879 49,444 57,979 67,979 79,637

Chart 8: Retail market size (by value) of personal care in Indonesia (IDR billion)

2010 2011 2012 2013 2014 2015E 2016E 2017E

CAGR

CAGR 2015E –2017E: 17.2%

Source: Euromonitor International — Beauty and Personal Care 2015 Edition

20%

5%

5%

11%35%

3%

21%

Chart 9: Sub-segment split within personal care in Indonesia (in terms of 2014 retail value)

Hair Care

Fragrances

Baby and child-specificproducts

Bath and shower productsSkincare

Mens Grooming

Others

Source: Euromonitor International — Beauty and Personal Care 2015 Edition

— 103 —

The personal care market in Indonesia is significantly underpenetrated compared to other Southeast

Asian peers, indicating strong upside potential, as manufacturers leverage on the opportunity to

introduce new SKUs while consumers develop greater awareness for personal care products.

The chart below sets forth per capita expenditure in 2014 on personal care:

371.3

134.059.1 43.3

2010 – 20146.9% 9.6% 5.5% 11.3%

Malaysia Philippines Thailand Indonesia

CAGR

Chart 10: Country benchmarking – 2014 personal care expenditure per capita (US$)

Source: EuromonitorInternational — Countries and Consumers 2015 Edition

Key sector characteristics

Sector-wide price increases spurring more aggressive promotional activities from brands

According to Euromonitor International, unit prices across the personal care industry have increased

across 2010 — 2014 due to various macroeconomic factors affecting the cost of manufacturing which

were subsequently passed on to end users. Fuel price hikes resulting from the removal of government

subsidies and the depreciation of the Rupiah caused increases in raw material pricing and overall

manufacturing costs. With the majority of Indonesian consumers still price-conscious, manufacturers

and retailers have undertaken aggressive marketing activities through value-enhancing propositions,

to sustain and witness growth. Retailers have undertaken promotional campaigns which increase unit

sales without reducing prices such as “buy one get one free” offers.

Female Muslim consumer form a key target market for brands

According to Euromonitor International, Indonesian female consumers have demonstrated a strong

reception for Halal-certified FMCG products (including personal care products), in line with their

religious beliefs. The growing preference for Halal FMCG products has created a market opportunity

for manufacturers as Halal personal care products began making headway in 2010. Local brands have

leveraged on their local expertise to penetrate the trend for Halal products, through various product

launches such as Sophie Paris Indonesia’s Muslimah skincare and fragrance ranges, Pesona

Amaranthine Cosmetiques’ Mazaya range for colour cosmetics, skincare and shampoo and Kino

Indonesia’s Resik-V range for intimate hygiene. Moving forward, Euromonitor International expects

that there will be a growing market for Halal men’s grooming products, in line with the rising

popularity of men-specific products.

Products with natural ingredients gaining popularity

According to Euromonitor International, the growing health and wellness trend have increased demand

for personal care products made from natural ingredients. Products with natural ingredients are

quickly becoming a substitute for health-conscious young urban Indonesians who are concerned by the

potential negative effects of chemical based products. Products with natural ingredients are expected

to continue to gain momentum with various multinational and local brands such as Ponds, Body Shop,

Viva Spirulina and Kino Indonesia introducing products to satisfy this demand.

— 104 —

Haircare in Indonesia

Overview

According to Euromonitor International, haircare includes shampoos, conditioners, styling agents,

2in1 products, perms and relaxants, colourants and salon hair care. The haircare retail market industry

experienced robust growth at 12.6% CAGR from IDR6,251 billion in 2010 to IDR10,044 billion in

2014. In order to maintain and increase market share, manufacturers are focusing on innovative

products to capture market share with specific purposes such as anti aging shampoos and striking

packaging.

Sub-segments driving growth

According to The Nielsen Company Indonesia, conditioners, which comprises creams, masks, tonics,

pastes, gels or liquids that are intended to specifically condition hair, are a leading sub-category

within the haircare market in Indonesia. The conditioner retail market in urban areas of Indonesia, has

grown by 13.0% CAGR from IDR1,000 billion in 2012 to IDR1,277 billion in 2014 spurred by rapid

urbanization.

1,000 1,190 1,277

2012 2013 2014

Chart 11: Retail market size (by value) of conditioner in urban Indonesia (IDR billion)

CAGR 2012 -2014: 13.0%

Source: The Nielsen Company Indonesia

According to The Nielsen Company Indonesia, the hair vitamin market accounts for 24.2% of the total

conditioner market and has grown by 29.2% CAGR from 2012 — 2014. The strong performance of key

brands such as Kino Indonesia and the entrance of new international players such as Sunsilk and Dove

in the hair vitamin segment has also contributed to strong growth of the conditioner segment during

the historic period.

Within the conditioner segment, there is a growing market opportunity for commercial hair products

such as hair masks and hair vitamins which replaces salon treatments due to busier lifestyle choices.

This is largely driven by consumer demand, which is moving beyond basic haircare products such as

shampoo into more sophisticated specialty products.

Competitive landscape

The broader conditioner category is dominated by multinational players capturing the top 2 positions

in terms of retail value market share. Kino Indonesia was the leading local brand in within the

conditioner category backed by its Ellips brand which caters to the low-middle income market. The

Nielsen Company Indonesia data shows the dominance of Indonesian local players in smaller segments

such as hair vitamin, with Kino Indonesia’s brands Ellips and Sasha commanding 77.0% and 3.2%

market of the hair vitamin segment, respectively.

— 105 —

Conditioners market share ranking

based on retail value for 2014

# Brand

Market

share (%)

1 Competitor A 30.0%

2 Competitor B 25.9%

3 Kino Indonesia 20.7%

Source: Euromonitor International — Beauty and PersonalCare 2015 Edition

Hair vitamin market share ranking

based on retail value for 2014

# Company

Market

share (%)

1 Ellips (Kino Indonesia) 77.0%

2 LucidoL (Mandom Indonesia) 7.5%

3 Sunsilk (Unilever Indonesia) 4.1%

Source: The Nielsen Company Indonesia

Fragrances in Indonesia

Overview

According to Euromonitor International, the fragrance retail market industry in Indonesia hasdemonstrated strong growth of 16.6% CAGR from IDR1,372 billion in 2010 to IDR2,537 billion in2014 due to customer base expansion and the overall desire to “smell and look good”. Aggressivepromotional campaigns and increased product launches from manufactures and retailers haveencouraged younger girls to start consuming fragrances. The industry is expected to grow at a CAGRof 14.3% from IDR2,946 billion in 2015 to IDR3,852 billion in 2017, underpinned by increased focuson the desire to “smell and look good” but may be affected by negative movements in the economydue to the highly discretionary nature of fragrance products.

Sub-segments driving growth

Within the fragrance category, segments such as splash colognes have demonstrated growingpopularity According to The Nielsen Company Indonesia, the market for splash colognes in urbanareas of Indonesia has been growing moderately by 4.0% CAGR from IDR523 billion in 2012 toIDR566 billion in 2014.

523

562 566

2012 2013 2014

CAGR 2012 –2014: 4.0%

Chart 12: Retail market size (by value) of splash colognes in urban areas Indonesia (IDR billion)

Source: The Nielsen Company Indonesia

Competitive landscape

The competitive landscape of the wider mass fragrance industry is extremely saturated and primarilydominated by multinationals, with Kino Indonesia and another local player being the only 2 domesticcompanies within the top 5 leading companies of mass fragrances.

According to Euromonitor International, Kino Indonesia is a top 3 player in the mass fragrance retailmarket. Kino Indonesia’s market dominance has been primarily attributable to successful launches ofnew products such as Eskulin cologne gel with moisturizer and marketing campaigns headlined bylocal celebrities such as Cherrybelle and a strong distribution network. Within the splash cologneretail market sub-segment, Kino’s Eskulin brand commands 29.1% market share according to TheNielsen Company Indonesia in 2014.

— 106 —

Mass fragrance market share ranking

based on retail value for 2014

# Company

Market

share (%)

1 Competitor A 14.7%

2 Competitor B 13.0%

3 Kino Indonesia 11.0%

Source: Euromonitor International — Beauty and PersonalCare 2015 Edition

Splash cologne market share

ranking for 2014

# Company

Market

share (%)

1 Eskulin (Kino Indonesia) 29.1%

2 Gatsby (Mandom Indonesia) 13.0%

3 Mustika Puteri (Mustika Ratu) 12.1%

Source: The Nielsen Company Indonesia

Baby and child-specific products

Overview

According to Euromonitor International, baby and child-specific products includes products for babiesand toddlers aged 0-3 years and products for children under 11 years of age. The baby and childspecific product retail market benefitted from improved accessibility to its products, demonstratingstrong growth of 15.1% CAGR from IDR1,326 billion in 2010 to IDR2,327 billion in 2014. Indonesiais the fastest growing market for baby and child-specific products, recording double digit growthcompared to benchmarked Southeast Asian peers such as Malaysia and Thailand which recorded 2010— 2014 CAGR of 4.7% and 8.7% respectively.

Urbanization has increased accessibility to baby and child-specific products and the industry isexpected to grow at a CAGR of 13.5% in the forecast period 2015-2017 to approximately IDR3,428billion in 2017, largely driven by the growing number of urbanized parents, rising disposable incomeand willingness to spend in this product category. Further, low per capita spending indicatessignificant market underpenetration, providing further room for growth.

Sub-segments driving growth

Apart from diapers and baby wipes, kids personal care products, which includes kids shampoo, kidscologne, kids soap and kids toothpaste, is a growing sub-segment of the baby and child-specificproduct retail market. According to the Nielsen Company Indonesia, packaging for kids’ personal carecategory products are typically labeled as “for kids” or “junior”. The Nielsen Company Indonesiaassessed that the kids personal care sub-segment has grown by 15.3% CAGR from IDR523 billion2012 to IDR695 billion in 2014. According to Euromonitor, the increased willingness to spend in theproduct category and strong marketing efforts from manufactures through the use of popular cartooncharacters on product packaging, have contributed to the growth of the kids personal care segment.

523 617

695

2012 2013 2014

Chart 13: Retail market size (by value) of kids personal care in Indonesia (IDR billion)(1)

CAGR 2012 –2014: 15.3%

(1) Kids personal care comprises of kids shampoo, cologne, soap and toothpaste. The retail market size of the categorydemonstrated in the chart above is the sum of the retail market size of kids shampoo, kids soap and kids toothpaste forIndonesia and the sum of retail market size of kids cologne in urban areas.

Source: The Nielsen Company Indonesia

— 107 —

Competitive landscape of baby and child-specific products

The baby and child-specific products market is consolidated with multinational players capturing thelions’ share of the market. Kino Indonesia is the only local player in the top 5, gaining popularity withits Eskulin Kids, B&B Kids, Master Kids and Sleek baby brands. Kino Indonesia was successful ingaining market share by focusing on the production of kids personal care products such as colognesand shampoos, unlike the majority of its competitors that offers a range of products across baby wipesto toiletries. According to The Nielsen Company Indonesia, Kino Indonesia controls 40.0% of thekids’ personal care market via its Eskulin, B&B Kids and Master Kids brands (defined as “KinoKids”).

Baby and child-specific products market share ranking

based on retail value for 2014

# Company

Market

share (%)

1 Competitor A 24.9%

2 Competitor B 22.5%

3 Competitor C 15.3%

4 Competitor D 12.6%

5 Kino Indonesia 9.4%

Source: Euromonitor International — Beauty and PersonalCare 2015 Edition

Kids personal care products market share

based on retail value for 2014

# Company

Market

share (%)

1 Kino Indonesia 40.0%

2 Lionindo Jaya 18.5%

3 Unilever Indonesia 10.8%

4 Cussons Indonesia 9.6%

5 Yuri 7.9%

Source: The Nielsen Company Indonesia

Bath and shower products in Indonesia

Overview

According to Euromonitor International, bath and shower products includes bar soap, bath additives,

body wash/shower gel, intimate washes, intimate wipes, liquid soap and talcum powder. The relative

maturity of the bath and shower industry in Indonesia has stabilized growth, with the retail market

growing moderately at 8.6% CAGR from IDR3,690 billion in 2010 to IDR5,135 billion in 2014.

Moving forward, the segment will continue to grow a stable pace, 8.6% CAGR from 2015 to 2017

driven by aggressive promotional efforts from manufacturers targeted at raising awareness and

specific age groups to expand the consumer base.

Sub-segments driving growth

The intimate hygiene segment will be the key proponent of growth, growing at 18.4% CAGR from

IDR207 billion in 2010 to IDR406 billion in 2014, driven by increased knowledge and familiarity

towards female hygiene products due to above the line and below the line promotional activities. The

intimate hygiene market is expected to continue to exhibit strong growth, at a CAGR of 15.9% from

2015 to 2017, increasing total market size to IDR637 billion. Growth is expected as the market

becomes more penetrated, as manufacturers and retailers engage in extensive marketing efforts to

increase consumer education. Compared to other Southeast Asian nations, the intimate hygiene market

in Indonesia is significantly underpenetrated, with per capita expenditure at US$0.14 compared to

Thailand and Philippines with US$0.36 and US0$0.35, respectively as at 31 December 2014.

— 108 —

207 247 294 347 406 474

551 637

Chart 14: Retail market size (by value) of intimate hygiene products in Indonesia (IDR billion)

2010 2011 2012 2013 2014 2015 E 2016E 2017E

CAGR 2010 –2014: 18.4%

CAGR 2015E–2017E: 15.9%

Source: Euromonitor International — Beauty and Personal Care 2015 Edition

Competitive landscape

Domestic players dominate the intimate hygiene market as multinationals continue to focus on corebath and shower products such as shower gel and talcum powder. Kino Indonesia led the market forintimate hygiene followed by other local names. Kino Indonesia’s prominent position is due to itsResik-V and Absolute brands which offer a wide range of SKUs to cater to consumer needs. Resik-Vboasts 7 different product offerings, catering to different needs through labeling such as “Spa” and“Extra”.

Intimate hygiene market share ranking based on retail value for 2014

# Brand Market share (%)

1 Kino Indonesia 67.0%

2 Competitor B 12.8%

3 Competitor C 9.1%

Source: Euromonitor International — Beauty and Personal Care 2015 Edition

Skincare in Indonesia

Overview

According to Euromonitor International, skincare retail market in Indonesia enjoyed rapid growth of23.2% from IDR7,496 billion in 2010 to IDR17,282 billion in 2014, benefitting from emerging beautytrends and increased consumer focus on physical appearance. The skincare retail market, whichcomprises of facial care, body care and hand care, is dominated by the facial care market with facialcare making up 87.2% of the skincare market in value terms in for the year 2014.

Sub-segments driving growth

Facial care comprises of acne treatments, facial moisturisers, anti-agers, facial cleansers, toners, facemasks, and lip care. Facial care retail market in Indonesia has enjoyed rapid growth of 23.6% CAGRfrom IDR6,444 billion in 2010 to IDR15,064 billion in 2014 as Indonesian consumers emphasize thedesirability of healthy skin and a flawless complexion. Strong growth is expected for the facial caremarket will be maintained moving forward. The industry is expected to grow at a CAGR of 21.2%CAGR from 2015 to 2017, as the rapid rate of urbanization and large population base provides a largeunsaturated potential market. Heavy investments in new product launches and aggressive promotionalcampaigns will also aid to educate consumers and tap the potential market.

According to The Nielsen Company Indonesia, the facial cleanser market is a large contributor togrowth of the facial care market, with facial cleanser growing at 15.3% CAGR from 2012 — 2014 toa total market size of IDR3,436 billion. According to Euromonitor International, specialty productssuch as anti-aging products or products containing natural ingredients saw a rise in demand during the

— 109 —

historic period and the trend is expected to continue moving forward as consumers express specificpreferences. The demand for time-efficient 2-in-1 products may also increase as busier lifestylesreduce time spent on skin care regimes. According to The Nielsen Company Indonesia 2-in-1 facialcleansers, contribute to 6.3% of the total facial cleanser market.

6,444 7,924 9,84412,187

15,06418,494

22,51627,184

Chart 15: Retail market size (by value) of facial care products in Indonesia (IDR billion)

2010 2011 2012 2013 2014 2015E 2016E 2017E

CAGR 2010 –2014: 23.6%

CAGR 2015E –2017E: 21.2%

Source: Euromonitor International — Beauty and Personal Care 2015 Edition

Competitive landscape of facial care market

The facial care retail market in Indonesia is largely fragmented and dominated by multinational firmsdue to the perceived prestige associated with these well-known international brands. Thesemultinational firms also benefit from greater resources to invest in product innovation and marketing.

However, local players are progressively gaining market share in niche sub-segments of the facial caremarket such as in 2-in-1 cleansers. According to The Nielsen Company Indonesia, Kino Indonesia’sOvale brand captured 50.2% retail value share in the 2-in-1 cleanser market in 2014.

Facial care market share ranking

based on retail value for 2014

# Brand

Market

share (%)

1 Competitor A 49.5%

2 Competitor B 13.7%

3 Competitor C 5.6%

Source: Euromonitor International — Beauty and PersonalCare 2015 Edition

2-in-1 cleanser market share ranking

based on retail value for 2014

# Company

Market

share (%)

1 Ovale (Kino Indonesia) 50.2%

2 Pond’s (Unilever Indonesia) 31.1%

3 Pixy (Mandom Indonesia) 7.1%

Source: The Nielsen Company Indonesia

Beverages in Indonesia

Overview

According to Euromonitor International, beverages constitutes carbonates, fruit/vegetable juice,bottled water, functional drinks, concentrates, RTD tea, RTD coffee and Asian specialty drinks. Thebeverage retail market industry has demonstrated moderate growth of 7.4% CAGR from 16,030million litres in 2010 to 21,307 million litres in 2014.

Over the years, rising health awareness has seen a shift in consumer’s preference towards “healthier”drinks such as freshly squeezed juices and Asian drinks that offer health benefits.

Continued stable growth is expected for the beverages market, albeit at a slower pace. The retailmarket volume is expected to grow at a CAGR of 5.9% CAGR from 2015 to 2017. Growth will beaffected by the rising cost of raw materials such as sugar and fuel and increasing health concernsslowing down the soft-drinks segment which comprises a large proportion of the overall beverageindustry. Manufacturers will have to introduce new flavours to sustain interest and protect valueshares for established brands.

— 110 —

16.0 17.3 18.6 19.9 21.3 22.7 24.1 25.4

Chart 16: Retail market size (by volume terms) of beverages in Indonesia (litres bn)

2010 2011 2012 2013 2014 2015E 2016E 2017E

CAGR 2010 –2014: 7.4%CAGR 2015E –2017E: 5.9%

Source: Euromonitor International — Soft Drinks 2015 Edition

Sub-segments of growth

According to Euromonitor International, growth in the beverages retail market will be driven by

healthy drinks and premium products.

As the demand for soft drinks fall due to rising health concerns, consumers will turn to healthy drink

alternatives such as juices and Asian drinks as a substitute to satisfy their demands. Major

manufacturers of Asian drinks such as Kino Indonesia and Sinde Budi Sentosa are capitalizing on this

trend by introducing new flavor variations to capture a wider population base through their Cap Kaki

Tiga and Larutan Cap Badak brands respectively.

The premium segment is expected to experience growth due to the rising middle income population.

Beverages in the premium segment which provide “upgrades” to mass segment products such as Aqua

Reflection Sparkling (carbonated bottled water), Fanta Royal (other non-cola carbonates), Double

Fresh (premium liquid concentrates) and Buavita Royale (juice which is high in antioxidants) have

witnessed strong growth from 2010 to 2014 and the growth trend is expected to continue moving

forward.

Competitive landscape

The overall beverage retail market is fragmented with both domestic and international players due to

the diverse nature of sub-categories. International brands are prominent in the established products

market such as soft drinks and juice while there is consumer preference for Asian specialty drinks

produced by local players due to local advantage.

Juices

Overview

According to Euromonitor International, the juice category is defined as beverages that contain 100%

juice, nectars (25-99% juice content), juice drinks (up to 24% juice content), fruit-flavoured drinks,

and cereal/pulse-based drinks. The juice retail market has grown moderately at 7.6% CAGR from 116

million litres in 2010 to 156 million litres in 2014. Rising disposable income, shift of demand for

packaged instead of homemade juice due to urbanization and busier lifestyles and abundant

promotional campaigns targeted at promoting healthier beverages has underpinned growth during the

historic period.

Moving forward, the expansion of product portfolios to target both the low income and high income

segment, respectively will drive growth. Growth is expected to accelerate moving forward at a CAGR

of 8.0% from 2015 to 2017. However, rising costs due to volatility in fruit prices as a result of

uncertain climate conditions and the rising cost of packaging materials may dampen growth prospects.

— 111 —

116 125 134 145 156 169 182 197

2010 2011 2012 2013 2014 2015E 2016E 2017E

Chart 17: Retail market size (by volume terms) of juices in Indonesia (litres m)

CAGR 2010 –2014: 7.6%CAGR 2015E –2017E: 8.0%

Source: Euromonitor International — Soft Drinks 2015 Edition

Competitive landscape of juice market

According to Euromonitor International, the current juice retail market is fragmented and competitive

with both international and domestic players seeking market share given low barriers to entry and the

willingness of the Indonesian consumer to try new beverages. The top two companies leading the

market in terms of retail volume share are local Indonesian players producing juice brands targeted

at lower income consumers.

Asian specialty drinks

Overview

According to Euromonitor International, Asian specialty drinks are traditional drinks or national

specialties commonly found in Asia. Drinks within this category include remedy drinks and jelly

drinks, amongst others. Remedy drinks, which are positioned to have “cooling” effects, and claim to

be effective in preventing or alleviating common ailments form a large part of Asian specialty drinks,

making up 77.3% of total retail market volume in 2014.

The Asian specialty drink retail market grew robustly from 2010 — 2014 with CAGR of 29.2%

achieving volume sales of 223 million litres in 2014. Remedy drinks are the star performer of the

category, exhibiting strong growth of 45.9% CAGR from 2010 to 2014 to reach volumes of 172 million

litres in 2014. The strong growth of the category is primarily attributable to its wide consumer base,

as the Asian drink market caters to a broad spectrum of consumers. Growth is further spurred by

increasing growing health awareness as these drinks (especially remedy drinks) are associated with

functional health benefits such as cooling properties. Growth moving forward for Asian drinks is

expected to be moderate at 5.6% CAGR from 2015 — 2017 while remedy drinks are expected to grow

by 9.3% over the same period.

42 44 46 48 51 43 36 3238 44

128 151 172 194 214 23180 87

174199 223 236 250 263

Chart 18: Retail market size (by volume terms) of Asian drinks in Indonesia (litres m)

2010 2011 2012 2013 2014 2015E 2016E 2017E

Other drinks Remedy drinks

Remedy drinks CAGR 2010 –2014: 45.9%

Remedy drinks CAGR 2015E –2017E: 9.3%Asian drinks CAGR 2010 –2014: 29.2%

Asian drinks CAGR 2015E –2017E: 5.6%

Source: Euromonitor International — Soft Drinks 2015 Edition

— 112 —

Competitive landscape of Asian drinks market

The Asian specialty drinks retail market is dominated by local players which are trusted by consumersand have a better understanding of the Asian consumer culture. In the broader Asian Drinks category,local manufacturers such as Kino Indonesia with its Cap Kaki Tiga brand have gained significantlyfrom the growing demand for remedy drinks. In remedy drinks, local players commanded the top 2positions. According to Euromonitor International, Kino Indonesia gained significant market sharefrom 2010 — 2014 due to strong promotional campaigns with TV advertisements featuring localcelebrities and prominent brand ambassadors as well as new flavor launches. Kino Indonesia alsobenefited from extending the Cap Kaki Tiga brand to target children, via the launch of Larutan CapKaki Tiga Anak.

Asian drinks market share ranking

based on retail volume sales for 2014

# Company

Market

share (%)

1 Competitor A 41.3%

2 Kino Indonesia 35.7%

3 Competitor B 15.0%

Source: Euromonitor International — Soft Drinks 2015Edition

Remedy drinks market share ranking

based on retail volume sales for 2014

# Company

Market

share (%)

1 Competitor A 53.5%

2 Kino Indonesia 46.2%

3 Competitor C 0.3%

Source: Euromonitor International — Soft Drinks 2015Edition

Sports and energy drinks

According to Euromonitor International, sports drinks are isotonic, hypotonic and hypertonic drinks

while energy drinks are purported to boost energy levels and contain high levels of caffeine and/or

taurine. The sports and energy drinks retail market grew strongly at 12.9% CAGR from 379 million

litres in 2010 to 615 million litres in 2014, underpinned by the integration of sports and energy drinks

into the consumer lifestyle. Further, perceived health benefits due to the isotonic properties of sports

drinks and the growing consumption of sports drinks as an alternative to bottled water have spurred

growth.

The overall segment is predicted to experience strong double digit growth of 11.0% from 2015 to 2017

due to the growth of the increasing popularity of sports drinks as a result of the rising fitness trend.

The energy drink market is expected to grow slowly at 2.3% CAGR from 2015 — 2017, continuing

from the low growth of 4.2% CAGR from 2010 to 2014, due to perceptions surrounding negative

health implications.

97 102 107 111 115 118 120 123282 330 383 441 500 567 640 720379 432 490 552 615 685 760 844

Chart 19: Retail market size (by volume terms) of sports and energy drinks in Indonesia (litres m)

2010 2011 2012 2013 2014 2015E 2016E 2017E

Energy drinks Other sports drinks

Energy drinks CAGR 2010 –2014: 4.2%

Energy drinks CAGR 2015E –2017E: 2.3%

Sports and energy drinksCAGR2010 –2014: 12.9%Sports and drinks CAGR 2015E –2017E: 11.0%

Source: Euromonitor International — Soft Drinks 2015 Edition

— 113 —

Competitive landscape of Sports and Energy drinks market

The competitive landscape for energy drinks contains a mix of domestic and international players.

Local players have made strong progress in the category, through the establishment of successful

product ranges and by capturing market share through an understanding of local consumer preferences.

Energy drinks market share ranking based on retail volume sales for 2014

# Brand Market share (%)

1 Competitor A 44.5%

2 Competitor B 22.0%

3 Competitor C 10.6%

4 Kino Indonesia 7.2%

Source: Euromonitor International — Soft Drinks 2015 Edition

Confectionary in Indonesia

The confectionary category in Indonesia comprises of candy, powdered concentrates and snacks.

According to Euromonitor International, the confectionary retail market experienced strong growth of

11.2% CAGR from IDR20,097 billion in 2010 to IDR30,715 billion in 2014, largely supported by

Indonesia’s large population and wide customer base due to its appeal across all age groups. The

competitive landscape in confectionary will be tipped in favour of domestic players due to Indonesia’s

halal regulation surrounding food and beverage.

6,487 7,150 7,860 8,740 9,785 10,799 11,861 12,9564,272 4,555 4,874 5,264 5,949 6,503 7,080 7,7299,337 10,477 11,679 13,15214,982

16,95419,130

21,52820,097 22,182 24,413

27,15730,715

34,25638,070

42,214

Chart 20: Retail market size (by value terms) of confectionary in Indonesia (IDR billion)

2010 2011 2012 2013 2014 2015E 2016E 2017E

Candy Powder Concentrates Snacks

CAGR 2010 –2014: 11.2%CAGR 2015E –2017E: 11.0%

Source: Euromonitor International — Packaged Food 2015 Edition & Soft Drinks 2015 Edition

Candy

Candy is one of the most affordable indulgence products in Indonesia. According to Euromonitor

International, the candy retail market grew moderately by 10.8% CAGR from IDR6,487 billion in

2010 to IDR9,785 billion in 2014 due to higher prices despite low volume growth. Volume driven

demand for candy has decreased due to the maturity of category and health concerns surrounding

dental hygiene. Growth were driven by the increasing cost of raw materials such as sugar which

manufacturers and retailers passed on to consumers, causing sharp unit price increases, and

consequently driving up retail value sales. Moving forward, Euromonitor International forecasts that

candy will grow by 9.5% CAGR from 2015 to 2017 due to further price increases and the introduction

of innovative products containing functional benefits such as medications and vitamins, catering to the

blossoming consumer health trend.

— 114 —

6,487 7,150 7,860 8,7409,785

10,79911,861

12,956

Chart 21: Retail Market Size (by Value Terms) of Candy in Indonesia (IDR billion)

2010 2011 2012 2013 2014 2015E 2016E 2017E

CAGR 2010 –2014: 10.8%

CAGR 2015E –2017E: 9.5%

Source: Euromonitor International — Packaged Food 2015 Edition

Powder concentrate

Powdered concentrates are granules and blocks/bars/cubes that are diluted with water before

consumption. According to Euromonitor International, the powder concentrate retail market grew

moderately with 8.6% CAGR from IDR4,272 billion in 2010 to IDR5,949 billion in 2014. Popularity

of powdered concentrates amongst low-income consumers as it provides an economical solution, as

an alternative to fresh juice and packaged drinks, underpinned growth during the historic period.

Euromonitor International forecasts that the powder concentrate retail market will continue to grow

moderately at 9.0% from 2015 — 2017, driven by an expanding consumer base but may be threatened

as the middle income population grows as more affluent and busy consumers tend to consume fresh

juices or RTD beverages with convenient packaging.

4,272 4,555 4,874 5,2645,949 6,503 7,080 7,729

Chart 22: Retail Market Size (by Value Terms) of Powdered Concentrates in Indonesia (IDR billion)

2010 2011 2012 2013 2014 2015E 2016E 2017E

CAGR 2010 –2014: 8.6%

CAGR 2015E –2017E: 9.0%

Source: Euromonitor International — Soft Drinks 2015 Edition

Snacks

According to Euromonitor International, the snacks retail market was the strongest category within

confectionary, with strong growth of 12.5% CAGR from IDR9,337 billion in 2010 to IDR14,982

billion in 2014. Strong growth for the industry was underpinned by Indonesia’s large population, the

growing middle income segment as well as the wide distribution of snack products through both

modern and traditional channels, allowing increased accessibility to consumers across Indonesia. The

snacks category, which includes sweet and savoury snacks ranging from fruit chips to nuts is expected

to remain the highest growth subcategory moving forward. Euromonitor International forecasts that

the snacks category will grow by 12.7% CAGR from 2015 to 2017 driven by increased purchasing

power of consumers.

— 115 —

9,337 10,477 11,679 13,15214,982

16,95419,130

21,528

Chart 23: Retail Market Size (by Value Terms) of Snacks in Indonesia (IDR billion)

2010 2011 2012 2013 2014 2015E 2016E 2017E

CAGR 2010 –2014: 12.5%

CAGR 2015E –2017E: 12.7%

Source: Euromonitor International — Packaged Food 2015 Edition

Pharmaceutical products in Indonesia

Pharmaceutical products retail market which includes topical analgesics, cough, cold, and allergy

remedies, and vitamin & dietary supplements, among others, has witnessed double digit growth across

2010 — 2014. Growth during the historic period has been due to lifestyle changes driving demand for

analgesics and positive consumer perception surrounding herbal products.

Factors such as climate change and pollution have increased consumer demand for analgesics due to

more frequent occurrences of ailments. Further, the herbal product category has benefitted from

aggressive marketing campaigns from manufacturers leading consumer perception of product safety

due to natural ingredients.

Topical analgesics

Topical analgesics include creams/ointments/gels/sprays used to alleviate superficial or deep-seated

aches and pain. According to Euromonitor International data, the retail market for topical analgesics

grew strongly from 2010 — 2014 at 16.8% CAGR from IDR651 billion in 2010 to IDR1,211 billion

in 2014 driven by lifestyle changes, pollution and climate change. Adverse weather effects and rising

pollution has caused more Indonesians to become susceptible to the common ailments which boost

demand for analgesics and painkillers.

Moving forward, Euromonitor International forecasts that demand for herbal analgesics will underpin

growth of topical analgesics as consumers rely on their traditional origins to alleviate sore muscles,

pains and skin itches. The sub-category is expected to outpace overall topical analgesics growth, with

a CAGR of 16.1% from 2015 — 2017. Over the forecast period topical analgesics are expected to grow

by 14.0% CAGR in 2015 — 2017 due to urbanization causing greater incidences of headaches and

pains as well as increased awareness providing foothold to gain market share

651 755 8841,039

1,2111,395

1,5951,812

Chart 24: Retail Market Size (by Value Terms) of Topical Analgesic in Indonesia (IDR billion)

2010 2011 2012 2013 2014 2015E 2016E 2017E

CAGR 2010 –2014: 16.8%

CAGR 2015E –2017E: 14.0%

Source: Euromonitor International — Consumer Health 2015 Edition

— 116 —

Cough, allergy and fever medication

Cough, allergy and fever medication comprises of an aggregation of decongestants, cough remedies,

pharyngeal preparations, medicated confectionery, combination products, antihistamines and pediatric

cough, cold and allergy remedies. The retail market of cough, allergy and fever medication registered

healthy growth with a CAGR of 14.2% increasing market size from IDR4,012 billion in 2010 to IDR

6,829 billion in 2014 due to weather inconsistencies causing more people to suffer from the cold and

flu.

As a subset of cough, allergy and fever remedies, herbal remedies grew at a faster rate, with a CAGR

of 16.4% to record IDR2,268 billon in 2014, making up one-third of the total retail value sales of

cough, allergy and hay fever remedies in the year. Growth is attributable to aggressive marketing

efforts of leading manufacturers, successfully leading consumers to perceive herbal/traditional

products to be healthier and safer due to their natural ingredients.

Over the forecast period of 2015 — 2017, cough, allergy and fever remedies is expected to grow by

12.6% CAGR due to climate change continuing to attack immunity and marketing efforts from

manufacturers to convince consumers of the benefits of these products. Increasing health concerns will

present opportunities for herbal cough, cold and allergy remedies, as herbal products are perceived to

have less harmful side effects. The retail value size of these herbal remedies is estimated to lead the

overall cough, allergy and hay fever remedies category at a CAGR of 17.1% over the forecast period.

4,012 4,538 5,187 5,9616,829

7,7438,740

9,823

Chart 25: Retail Market Size (by Value Terms) of Cough, Allergy and Fever Remedies in Indonesia (IDR billion)

2010 2011 2012 2013 2014 2015E 2016E 2017E

CAGR 2010 –2014: 14.2%

CAGR 2015E –2017E: 12.6%

Source: Euromonitor International — Consumer Health 2015 Edition

— 117 —

HISTORY, CORPORATE RESTRUCTURING AND GROUP STRUCTURE

History and Background

Our Company

Our Company was incorporated under the name of “PT Kinocare Era Kosmetindo” under the laws ofthe Republic of Indonesia by Deed of Establishment No. 3 dated 8 February 1999. Our Companyacquired its status as a legal entity after being approved as an Indonesian limited liability companydomiciled in Bandung, West Java by the Minister of Law and Human Rights of the Republic ofIndonesia (“MOLHR”) pursuant to Approval No. C-7429HT.01.01-TH.99 dated 20 April 1999.

In the second half of 2014, our Company changed its name from “PT Kinocare Era Kosmetindo” to“PT Kino Indonesia” and underwent an internal corporate restructuring. The changing of ourCompany’s name was approved by the MOLHR and became effective on 4 September 2014. Therestructuring occurred in three stages. The first stage involved our Company acquiring a majorityownership of DLS. The second stage involved PT Kino Investindo increasing its shareholding in ourCompany to 87.5%. The third and final stage involved a transfer of shares from Mr. Harry Sanusi toKino International, a wholly owned subsidiary of our Company, resulting in KVC and KCM being100% owned by Kino International, and KCP being substantially owned by Kino International.

Our Shareholders

PT Kino Investindo has an 87.5% interest in our Company and Mr. Harry Sanusi, our founder, CEOand President Director, has a 12.5% interest in our Company. PT Kino Investindo is a private companyincorporated under the laws of the Republic of Indonesia by Deed of Establishment No. 89 dated 17June 2009 and acquired its status as a legal entity after being approved as an Indonesian limitedliability company domiciled in Jakarta by the Ministry of Justice (“MOJ”) pursuant to Approval No.AHU-45506.AH.01.01.Tahun2009 dated 14 September 2009. PT Kino Investindo is 99% owned by Mr.Harry Sanusi and 1% owned by Mr. Ali Sanusi.

Before the restructure, PT KEK was owned as to 22.0%, 1.08% and 76.92% by Mr. Harry Sanusi, Mr.Ali Sanusi and PT Kino Investindo respectively. In June 2014, the shareholders of PT KEK agreed toincrease its issued and fully paid capital from Rp65,000 million to Rp120,000 million. The increaseof issued and fully paid capital of Rp55,000 million was subscribed by PT Kino Investindo. Mr. AliSanusi also transferred the 1.08% equity interest in PT KEK to Mr. Harry Sanusi. Upon completionof the transactions, PT KEK was owned as to 87.5% and 12.5% by PT Kino Investindo and Mr. HarrySanusi respectively. In September 2014, PT KEK changed its name to “PT Kino Indonesia”.

DLS

DLS was the first company in our Group and is 99.9% owned by our Company. DLS opened its firstbranch in 1991 and had grown to 29 branches as at 30 June 2015, located across Java, Bali andMakasar. Through its branches and local distributors DLS handles our distribution operationsthroughout Indonesia.

DLS was incorporated under the laws of the Republic of Indonesia by Deed of Establishment No. 159dated 28 August 1991, and acquired its status as a legal entity after being approved as an Indonesianlimited liability company domiciled in Jakarta by the MOJ pursuant to Approval No. C2-9848HT.01.01.Th.94 dated 27 June 1994. In June 2014, the shareholders of DLS agreed to increase theissued and fully paid capital from Rp500 million to Rp13,500 million. This increase of issued and fullypaid capital amounted to Rp13,000 million and was paid entirely by our Company. The DLSshareholders also agreed to sell our Company the shares held by Mr. Harry Sanusi, Ali Sanusi and NgSoi Kiauw amounting to Rp162 million, Rp175 million and Rp150 million, respectively, totalling 487shares or 97.4% ownership of DLS. Subsequently, the shareholders of DLS agreed to increase the

— 118 —

issued and fully paid capital from Rp13,500 million to Rp67,500 million through Notarial Deed No.

9 of Lenny Janis Ishak, S.H., dated 15 October 2014. This increase of issued and fully paid capital

was proportionally paid by all shareholders and amounted to Rp54,000 million. As a result, our

Company now owns 99.9% of DLS, with Mr. Harry Sanusi retaining 0.1%.

PT MKI

PT MKI was incorporated under the laws of the Republic of Indonesia by Deed of Establishment No.

40 dated 19 July 2013 and acquired its status as a legal entity after being approved as an Indonesian

limited liability company domiciled in Jakarta by the MOLHR pursuant to Approval No.

AHU-40874.AH.01.01.Tahun2013 dated 26 July 2013. PT MKI is a joint venture company among our

Company, Mr. Harris Sanusi, the younger brother of Mr. Harry Sanusi, and Morinaga & Co. Ltd. Our

Company, Mr. Harris Sanusi and Morinaga & Co. Ltd own 29.4%, 19.6% and 51% share of the joint

venture respectively. PT MKI produces a wide range of candies, snacks and powdered drinks. Under

the terms of the joint venture, PT MKI may use any of Morinaga & Co., Ltd.’s current or future

trademarks and manufacture, sell, advertise or promote any of Morinaga & Co., Ltd.’s current or

future products. See “Material Contracts — Joint Venture Agreement” for more details. PT MKI has

two factories which are located in Terboyo and Sayung, Central Java.

Overseas Subsidiaries

Kino International, established in 2013, is 100% owned by our Company and in 2014, in conjunction

with the corporate restructuring, became the holding company for our overseas distribution

companies, KCP, KCM and KVC, all of which are wholly owned by Kino International. Kino

International was established on 26 December 2013 and domiciled in Singapore, with one share

(equivalent to US$1), which we own. On 24 September 2014, we increased Kino International’s share

capital to 7,687,439 shares.

KCM is domiciled in Malaysia and started its commercial operations in 2003. On 9 June 2014, Kino

International entered into a Share Sale and Purchase Agreement to acquire a 92.38% ownership stake,

namely the 1,455,000 shares in KCM owned by Mr. Harry Sanusi. Kino International entered into a

further Share Sale and Purchase Agreement on 9 June 2014 with Toh Boon Huat, a third party, to

acquire an additional 120,000 shares in KCM, representing 7.62% ownership. KCM increased its

paid-up capital to Rp25,899,922,095 amounting to 7,124,112 shares on 5 September 2014. Through

Kino International, we have indirect 100% ownership of KCM.

KCP is domiciled in the Philippines and started its commercial operations in 2004. Kino International

acquired 41,035,995 shares in KCP through a Share Sale and Purchase Agreement dated 2 July 2014

for Rp11,196,325,891 from Mr. Harry Sanusi resulting in our indirect substantial ownership of KCP,

through Kino International.

KVC is domiciled in Vietnam and started its commercial operations in 2013. Kino International

acquired ownership of KVC from Mr. Harry Sanusi through a Capital Contribution Sale and Purchase

Agreement dated 2 July 2014 for Rp1,097,499,045 resulting in our indirect 100% ownership of KVC,

through Kino International.

— 119 —

The following diagrams set out our Group’s current shareholding structure and our Group’s anticipated

shareholding structure immediately upon completion of the Global Offering.

GROUP STRUCTURE (before Global Offering)

87.5% 12.5%

29.4% 100% 99.9%

100% 100% 100%

(1)

(2)(3)

(4)

PT Kino Investindo

Mr. Harry Sanusi

PT KinoIndonesia Tbk

PT Duta Lestari Sentratama

Kino International Pte Ltd

PT MKI

Kino Vietnam Co. Ltd.

Kino (M) Sdn Bhd

Kino ConsumerPhilippines

Inc.

Notes:

(1) 99% held by Mr. Harry Sanusi and 1% held by Ali Sanusi.

(2) the remaining 0.1% is held by Mr. Harry Sanusi.

(3) the remaining 19.6% is held by Mr. Harris Sanusi and 51% by Morinaga & Co. Ltd, an independent third party.

(4) Shareholders: Kino International (205,502,944 shares), Mr. Harry Sanusi (1 share), Melissa (1 share), TJ Iang Likson

Chandra (1 share), Juan Carlos R Bondoc (1 share) and Diana (1 share).

— 120 —

GROUP STRUCTURE (after Global Offering)(5)

73.5% 10.5% 16.0%

29.4% 100% 99.9%

100% 100% 100%

PT Kino Investindo(1)

Mr. Harry Sanusi

PT Kino Indonesia Tbk

PT Duta Lestari Sentratama(2)

Kino International Pte Ltd

PT MKI(3)

Kino Vietnam Co. Ltd.

Kino (M) Sdn Bhd

Kino ConsumerPhilippines

Inc.

(4)

Public shareholders

Notes:

(1) 99% held by Mr. Harry Sanusi and 1% held by Ali Sanusi.

(2) the remaining 0.1% is held by Mr. Harry Sanusi.

(3) the remaining 19.6% is held by Mr. Harris Sanusi and 51% by Morinaga & Co. Ltd, an independent third party.

(4) Shareholders: Kino International Pte Ltd (Singapore) (205,502,944 shares), Mr. Harry Sanusi (1 share), Susanto (1

share), Tjiang Likson Chandra (1 share), Juan Carlos R Bondoc (1 share) and Diana (1 share)

(5) without taking into account of the Private Placement by PT Kino Investindo. Immediately following the Global Offering,

our Controlling Shareholders will own approximately 80% of our outstanding Shares, assuming the sale of all of the Offer

Shares.

— 121 —

BUSINESS

Overview

We are one of the leading FMCG businesses in Indonesia, with a diverse portfolio of leading personalcare brands complemented by a growing portfolio of food and beverage brands. We have establishedleading positions in the personal care segment in Indonesia with a number of well-known andorganically developed brands targeted primarily at consumers in the middle to higher income brackets.According to The Nielsen Company Indonesia, we were the largest producer of hair vitamin, intimatehygiene and 2-in-1 cleansing products in Indonesia in terms of total retail sales value in the year ended31 December 2014 with our “Ellips” hair vitamin, “Resik-V” intimate hygiene and “Ovale” 2-in-1cleanser commanding market shares of 77.0%, 49.2% and 50.2%, respectively. We also sell a broadrange of beverage and food products that appeal to middle to higher income and lower and middleincome Indonesian consumers respectively. In July 2013, the establishment of PT MKI, a joint ventureamong our Company, Pak Harris Sanusi and Morinaga & Co. Ltd, a Japanese food manufacturer,extended our target market of food products to higher income Indonesian consumers. We place greatemphasis on the innovation and development of our products and seek to differentiate ourselves fromlarge FMCG competitors via our product range, brand equity in selective market segments andextensive nationwide distribution network. We believe part of our success is attributable to our abilityto identify segments of the Indonesian market with strong growth potential based on ourclose-to-ground knowledge of this market and our end-to-end capabilities, from product developmentto manufacturing and distribution.

Our business divisions comprise the following:

Personal Care: Our personal care division, which commenced operations in 1999, accounted for51.1%, 51.7%, 41.6% and 50.2% of our sales in 2012, 2013, 2014 and the six months ended 30 June2015 respectively. We offer a wide range of personal care products including hair care, bath andshower, skin care, and baby and child-specific products under various brands to cater to differentmarket segments. Our major personal care brands include “Ellips”, “Resik-V” and “Ovale”. Goingforward we will leverage our local knowledge, culture of innovation and end-to-end capabilities totarget additional personal care segments.

Beverages: Our beverages division, which commenced operations in 2004, accounted for 44.4%,39.9%, 35.0% and 36.2% of our sales in 2012, 2013, 2014 and the six months ended 30 June 2015respectively. We produce a variety of beverages including remedy drinks, energy drinks, herbal drinksand juice drinks under various brands. Our major beverage brands include “Cap Kaki Tiga”, “Panda”and “Panther”.

Food: Our food division, which commenced operations in 1997, accounted for 4.3%, 7.8%, 23.2% and13.4% of our sales in 2012, 2013, 2014 and the six months ended 30 June 2015 respectively. Prior toNovember 2013, we were one of the distributors of food products manufactured by our affiliate, PTKSI, through DLS. In October 2013, DLS became the sole distributor of PT MKI, a joint ventureamong our Company, Mr. Harris Sanusi and Morinaga & Co, Ltd. established in July 2013, and intowhich substantially all of PT KSI’s food business was transferred. All of the food products PT MKImanufactures are exclusively distributed and sold to consumers via DLS. The food brands wedistribute are currently divided into the Kino Candy, Snackit and Segar Sari ranges, comprising avariety of confectioneries, snacks and powdered drinks. Going forward we expect our range of foodproducts to expand and target more premium consumers as we leverage the technology, expertise andbrands of our joint venture partner.

Pharmaceuticals: Our pharmaceutical division, accounted for 0.1%, 0.6%, 0.2% and 0.1% of our salesin 2012, 2013, 2014 and the six months ended 30 June 2015. Our pharmaceutical products includethree types of balms and a herbal cough remedy under the “Cap Kaki Tiga” brand.

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We have established an extensive nationwide distribution and sales network through our distribution

arm, DLS, which has allowed us to grow rapidly and penetrate the large Indonesian consumer goods

market. DLS is the sole distributor of our products and the food products of PT MKI through its owned

branches and third-party local distributors. DLS as our first group company started its distribution

business in 1991, and provides us a strong heritage and expertise in distribution. As at 30 June 2015,

DLS had 29 branches and 124 third-party local distributors with whom DLS has entered into 189

distribution agreements (totalling 211 distribution centres), which provided us access to a nationwide

network of 941,106 direct and indirect outlets spread across 35 provinces in Indonesia. Our owned

branches are primarily focused on the Java and Bali regions where we believe consumers generally

have greater spending power as these regions account for the majority of the population and spending

in Indonesia. In order to penetrate other regions in Indonesia, such as Sumatra, Kalimantan and

Sulawesi in a cost effective manner, we distribute our products in these regions through third-party

local distributors, which gives us access to close-to-ground knowledge of regional business conditions

and practices. Our personal care products are also exported to the Philippines through KCP and its 27

third-party local distributors, to Vietnam through KVC and its one local distributor, to Malaysia

through KCM and its one local distributor, and to other countries around the world. The map below

sets out our nationwide sales and distribution network in Indonesia as at 30 June 2015. While our

international sales are currently small, we expect these to increase over time.

Notes:

(1) DLS owned branches: 29 distribution centres; third-party local distributors: 211 distribution centres owned by 124

third-party local distributors

(2) Total direct and indirect outlets: 941,106, including 201,076 direct outlets of DLS and 740,030 indirect outlets through

third-party local distributors

We believe that our leading position in the personal care segment in Indonesia complemented by our

growing food and beverages businesses will enable us to take advantage of continued growth

opportunities in the Indonesian FMCG market. From 2010 to 2014, Indonesia’s real GDP grew at a

CAGR of 4.1%. The International Monetary Fund predicts that Indonesia’s real GDP will grow by a

CAGR of 7.8% from 2015 to 2020. According to Euromonitor International, Indonesia’s middle

income population, defined as households with between US$7,501 and US$45,000 income per annum,

has grown by a CAGR of 5.0% from 2010 to 2014 and the disposable income per capita has also

increased with a CAGR of 10.8% during the same period. The World Bank forecasted that the middle

class population will represent 80% of Indonesia’s total population by 2030, providing a strong

foundation for future consumption growth, particularly for discretionary products such as FMCG. As

a result of these trends, we believe consumer spending on our products will also increase.

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We have four plants located in Cikande (Banten), Cidahu (West Java), Cikembar (West Java) andPandaan (East Java), and PT MKI has two plants located in Sayung (Central Java) and Terboyo(Central Java). The six plants have a total installed capacity of 237,476 kilolitres. We also operatetwelve warehouses, which are used as distribution centres, located in Kapuk, Tangerang (PondokAren), Serang, Depok, Bekasi, Bandung (Ciseureuh), Bandung (Margasuka), Semarang, Sidoarjo,Surabaya, Makassar and Denpasar, accounting for a total of 17,235 pallet positions as at 30 June 2015.

Our sales and net income have continuously increased in recent years. Our sales amounted toRp1,692,137 million, Rp2,267,314 million, Rp3,339,386 million and Rp1,746,627 million (US$131.0million) in the years ended 31 December 2012, 2013, 2014 and the six months ended 30 June 2015respectively. Our net income was Rp31,544 million, Rp51,155 million, Rp104,160 million andRp141,336 million (US$10.6 million) in the years ended 31 December 2012, 2013, 2014 and the sixmonths ended 30 June 2015 respectively.

Our Strengths

Our competitive strengths include the following:

Leading brand positions in multiple segments of Indonesia’s personal care sector complemented bygrowing food and beverage businesses

As one of the leading FMCG businesses in Indonesia with a diverse portfolio of strong brands andwidespread consumer loyalty, we command leading Indonesian market positions in a variety ofpersonal care product segments. Based on data from The Nielsen Company Indonesia, in terms of totalretail sales value in the year ended 31 December 2014, our in-house developed brands such as Ellips,Resik-V, Eskulin, Ovale, and three baby and child-specific brands (Eskulin Kids, B&B Kids andMaster Kids) were the market leaders in Indonesia for: hair vitamin, with a 80.2% market share;intimate hygiene, with a 49.2% market share; splash cologne, with a 29.1% market share; 2-in-1cleanser, with a 50.2% market share; and kids personal care, with a market share of 40.0%.

Our ability to predict and fulfil consumer demands has enabled us to create a portfolio of recognisablepersonal care brands which benefit from strong nation-wide brand loyalty among consumers inIndonesia. We focus on high-growth segments of Indonesia’s personal care industry where we canleverage our innovations in product development and marketing to create leadership positions and helpgrow our product portfolio. We have continuously employed a strategy of exploring selective marketsegments which has resulted in a wide range of product offerings, catering to consumer demandsacross the spectrum. Our current focus categories include selective segments for hair care, skin careand baby and child-specific products targeting middle to higher income consumers, instead of moremainstream personal care products such as soap, shampoo and toothpaste as the market for theseproducts is more competitive and typically attracts lower margins. We may, however, in the future seekto enter into segments of such mainstream personal care products with a view to expand our productsportfolio. As at 30 June 2015, we had 534 personal care SKUs on the market and our leading personalcare brands accounted for 229 SKUs.

Our leading personal care business is complemented by a growing portfolio of food and beveragebrands. In July 2013, our Company and Mr. Harris Sanusi established a joint venture, PT MKI, withMorinaga & Co. Ltd, to produce a wide range of premium branded food products, which we believewill enable us to expand our target consumer market from lower to middle income Indonesianconsumers to also capture higher income consumers. As at 30 June 2015, we had 664 SKUs on themarket, of which approximately 80.4% were personal care, 10.3% were food, 8.1% were beveragesand the remaining 1.2% were pharmaceutical products. Our presence across various product segmentsenhances brand familiarity and encourages the cross-selling of products due to the familiarity of, andloyalty to, the wider Kino brand.

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Growing portfolio of food & beverage brands with access to premium brands via our joint venturewith Morinaga

We have a growing range of branded food and beverages products. We launched our first food productproduced by PT KSI, “Kino Candy”, in 1997 and have since distributed a wide range ofconfectioneries, snacks and powdered drinks targeting lower to middle income Indonesian consumers.In 2013, the establishment of PT MKI, a joint venture among our Company, Mr. Harris Sanusi andMorinaga & Co. Ltd, a Japanese food manufacturer, granted us access to premium brands covering awide range of food products which are quintessential to the Morinaga brand, such as Hi-Chew candies.This joint venture adds a new dimension to our food division with the addition of established premiumbranded food products that will help us extend our target market to higher income consumers inIndonesia. Our strategic joint venture with Morinaga & Co, Ltd has also strengthened our productdevelopment and marketing knowledge by providing us access to premium brands and more advancedtechnologies. This joint venture agreement also illustrates the strength of our business anddemonstrates the willingness of leading international FMCG companies to form long-term strategicrelationships with us.

Our beverages command strong positions in their respective segments. According to EuromonitorInternational, our Asian speciality drinks, which includes our “Cap Kaki Tiga” ready-to-drink remedydrink and our “Panda” herbal drink, achieved a 35.7% market share in the Asian speciality drinkssegment and a 46.2% market share of remedy drinks products, each in terms of total retail sales valuein the year ended 31 December 2014. The “Cap Kaki Tiga” brand is an important member of ourbeverage portfolio and we also sell pharmaceutical products, such as herbal cough remedies and arange of balms, under this brand. This product area represents a large opportunity for growth of ourbusiness. Our licensing arrangement with Wen Ken Drug Co (Pte) Ltd has provided us with a platformfor sharing technology and expertise, and assisted us in the development and expansion of our productofferings.

Pan Indonesia presence with an extensive and modern distribution network supplemented bythird-party distributors outside Java

We have a strong heritage of, and expertise in, distribution. We distribute our products throughoutIndonesia via our distribution subsidiary, DLS, which has expanded from opening its first branch in1991 into an established and efficient infrastructure platform consisting of 29 owned branches and 124local distributors with whom DLS has entered into 189 distribution agreements (totalling 211distribution centres) as at 30 June 2015. This platform provides us with an extensive distribution reachacross 35 provinces in Indonesia with a sales force of 1,803 as at 30 June 2015. We have adopted astrategy of establishing a meaningful presence in major cities in Java and Bali, which we consider asour core markets, by opening our owned branches. In other cities in Java and cities outside Java, wegenerally engage third-party local distributors. Our international network and distribution is alsogrowing through our subsidiaries KCP, KVC and KCM and relationships with internationaldistributors across Asia, Australia, the Middle East and Africa.

Our distribution network supplies our various well-established trade channels (general, modern andinstitutional) which provided us access to 941,106 direct and indirect outlets as at 30 June 2015.Through these channels we are able to leverage local capabilities to increase sales and maintaingrowth momentum. Currently, the general trade channel is the strongest and most important channelin our distribution network, contributing to approximately 65% of our sales in the six months ended30 June 2015. Our local capabilities play a key role in our relationships with direct and indirect outletsand we believe we have an advantage in this distribution channel versus our international competitorsdue to our close knowledge of local Indonesian business practices. The modern trade channelcontributed to approximately 33% of our sales in the six months ended 30 June 2015. We intend togrow our modern trade channel presence moving forward, as Indonesian consumers shift to shoppingat larger format retailers such as Carrefour and Lotte. The institutional trade channel contributedapproximately 2% of our sales in the six months ended 30 June 2015, and provides us with additionalavenues to increase the visibility of our products.

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We use modern technologies to drive efficiency in inventory control throughout our distributionnetwork. We use SAP systems for real-time monitoring of critical business information such as neworders, inventory, point-of-sale (POS) data to customers, delivery, and bill collection. We have alsopartnered with reputable information technology providers, such as Hewlett Packard, TelkomIndonesia, Qlikview and Nielsen Spaceman Professional to implement an integrated IT-basedapproach to managing our business. These information management systems allow us to improveoperational efficiencies by maintaining close control over inventory and operating expenses. They alsoenable us to adjust product offerings in line with market demand through automated orderreplenishment, allowing us to ensure ‘just-in-time’ delivery of products to our customers.

We believe that our extensive distribution operation across the Indonesian archipelago is a keycompetitive advantage for us, as the difficulty in establishing an efficient logistics network creates astrong barrier to entry for smaller competitors and new entrants. In addition, we believe that ourgeographically diversified distribution network, supported by a logistics infrastructure with short leadtimes, enables us to distribute our products nationwide in a cost-effective manner.

Strong product development and manufacturing capabilities and proven track record of productinnovation

Our strong product development efforts have enabled us to expand the range and improve the qualityof our products over the years. We have dedicated “KINO-Vation” teams for each of our personal care,beverage and pharmaceutical divisions, and PT MKI also has a dedicated team for food products.These teams follow a highly structured innovation and product development process that typicallytakes 18 months to complete, from generating an idea to full commercialisation. Together these teamsconsisted of 99 experts (including those of PT MKI) as at 30 June 2015, including 29 chemists, 28pharmacists, 17 food technologists, 16 chemical engineers, seven food nutritionists and two biologists.These teams regularly collect market intelligence from our sales and marketing teams to develop newproduct lines in order to improve and expand product offerings. These teams also collaborate onproduct research with third parties such as the Pharmacy Department of Gadjah Mada University inIndonesia, the Lubrizol Lab in Singapore and the Seppic Lab in Shanghai.

These product development teams have demonstrated a strong track record of product innovation tomeet changing consumer trends, the evolution of technology and competition. In 2012, 2013, 2014 andthe first half of 2015, we launched 36, 29, 27 and 22 new SKUs of ten, eight, six and eight brandsrespectively, and we re-launched 45, 21, five and 33 SKUs of three, two, one and three brandsrespectively. We believe our product research and development capabilities have enabled us tosuccessfully achieve ongoing product improvement, continuously expand our product offerings anddiversify our product mix, as well as maintain our competitiveness in the FMCG industry in Indonesia.

Our products are manufactured across six plants (including two plants of PT MKI) with a totalinstalled capacity of 237,476 kilolitres. The plants utilise modern and technologically advancedequipment from leading Japanese and European machinery manufacturers, and have obtained a numberof certifications, including ISO 9001:2008 Quality Standard since 2005, Certified GoodManufacturing Practice (GMP) since 2005, halal certification since 2009. We believe that the standardof our production facilities ensures that our customers are provided with quality products inaccordance with best-in-class manufacturing practices.

Experienced and entrepreneurial management team with a track record of delivering growth andprofitability

Our management team consists of experienced and qualified professionals, with previous workingexperience in leading international FMCG companies, particularly with respect to establishing,managing and operating consumer businesses. Our senior management team of five senior executiveshas been with us for a combined approximately 96 years and possesses extensive industry experiencein Indonesia.

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This team is led by our CEO and President Director, Mr. Harry Sanusi, who founded our Group byestablishing our distribution arm, DLS, in 1991, and includes professionals who were instrumental inour growth from the introduction of first product, “Kino Candy”, in 1997, and in our achieving leadingmarket positions across various product segments.

We also benefit from an experienced and entrepreneurial management team which has, over the years,demonstrated the ability to successfully grow our business, develop brand recognition across multipleconsumer segments, grow and sustain a culture of innovation and excellence across our entireorganisation, and drive profitable growth. Led by this team, we have achieved a track record of stableand profitable growth, doubling our revenue and tripling our net income, between 2012 and 2014, byscaling up the business and driving profitability through economies of scale and operationalefficiencies. Our sales grew at a CAGR of 40.5% from Rp1,692,137 million in 2012 to Rp3,339,386million in 2014 and our net income grew at a CAGR of 81.7% from Rp31,544 million in 2012 toRp104,160 million in 2014.

We believe that the market experience and knowledge of our team and the business relationships theyhave developed with key partners, suppliers and customers will continue to benefit our future growthand development.

Business Strategies

Our key business strategies include the following:

Focus on expanding our product portfolio and further solidifying leading market positions

We will continue to promote a consumer-oriented culture focused on continuous product innovationand development. We believe this has provided us with a strong foundation and a first-moveradvantage in developing diverse product lines and will continue to be a key to maintaining andenhancing our long-term competitiveness. We will continue to develop new product categories andvariants and diversify product lines in response to consumer trends and our predictions of consumerdemands based on our deep market knowledge. Our experienced and integrated in-house productdevelopment team provides us with a competitive capability to efficiently develop and launch newproduct variants and categories and to expand our product offering range in each targeted consumersegment.

We will also selectively seek to increase our product offerings and capture market share across productsegments through inorganic growth, such as mergers and acquisitions or cooperation with internationalcompanies like Morinaga & Co, Ltd and Wen Ken Drug Co. (Pte) Ltd to obtain technology andexpertise and enter into new product areas. Our strategic joint venture with Morinaga & Co, Ltd hasalso strengthened our product development and marketing knowledge by providing us access topremium brands and more advanced technologies. Under the terms of the agreement, PT MKI may useMorinaga & Co., Ltd.’s “Hi-Chew” trademark and any of Morinaga & Co., Ltd.’s current or futurebrands or trademarks. PT MKI may also use and manufacture, sell, advertise or promote Morinaga &Co., Ltd.’s “Hi-Chew” brand products and “Bake” brand products, as well as any of Morinaga & Co.,Ltd.’s current or future products. We believe that entering into new product areas will allow us todiversify our product portfolio and position our brands as fulfilling the needs of the entire household.

We will continue to enhance our brand equity through integrated marketing activities, including“Above-the-Line” advertising through free-to-air television commercials, digital advertising, programsponsorships, print advertisements and out-of-home billboard advertising. We will continue to developour “In-Store” and “Out-of-Store” programs through displays and planograms, category management,brand ambassadors, in-store promotions, out-store brand activation and consumer engagement. Anintegral part of our marketing activities will be our focused consumer relationship programs with ourdifferent distribution channels.

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Continue to expand our distribution and sales network within Indonesia

We intend to further expand our distribution and sales network in Indonesia by establishing moreowned branches and developing more third-party local distributors. Our owned branches currentlyfocus on operations in the larger cities in Java, and we plan to penetrate the markets in smaller citiesin Java by setting up more owned branches. We will also continue to expand beyond the Java regioninto cities which we believe are currently underserved and which contain a large and growing base ofmiddle-income consumers. We aim to develop more third-party local distributors in such areas toachieve a first-mover advantage into these regions. We believe that we have an advantage over largercompanies when venturing into underpenetrated regions as our management personnel have a stronginsight into local market conditions. Through increased cooperation with local distributors, as well asincreasing the number of owned branches, we aim to achieve access to 1.4 million direct and indirectoutlets by 2020. In addition, we aim to increase the sales contribution from owned branches fromapproximately 44% of our total sales as at 30 June 2015 to 60% by 2020. We believe that our increasedfocus on owned branches as the primary point of distribution will afford us greater control of theexpanded distribution process, thereby enhancing efficiency and reducing cost.

In addition, we also plan to strategically expand our overseas operations as we believe that ourbusiness model, which primarily focuses on selective, underserved middle market segments will affordus similar success in other ASEAN regions where consumer trends, demographics and economicgrowth are similar to Indonesia and therefore more familiar to us. In 2016, we plan to establish adistribution subsidiary in Thailand.

Improve cost efficiency and increase production capacity

We will continue our efforts to control costs by seeking to optimise operational efficiency andproductivity through negotiating better terms with suppliers, leveraging our scale, efficient utilisationof raw materials, reducing rejection rates, continuing cost discipline, and reducing general andadministrative expenses. We continually re-evaluate our processing parameters with a focus onreducing waste generated during production. We are also gradually increasing automation levels toenhance productivity, and continue to provide training for employees in order to increase theirtechnical skills. We have partly switched to more economical and efficient energy sources andcontinue to explore ways to increase our use of such energy sources.

We also plan to expand the production capacity of our existing plants through the construction ofadditional factories and warehousing facilities, purchasing additional machinery, and establishing newproduction lines. Many of the plants are already running at above 80% utilisation rates. We plan toexpand our production capacity as we increase production volumes and introduce new products. Weown the land around our existing plants at Cikande, Cidahu and Pandaan, which will allow us toexpand our production capacity quickly and cost effectively. We have also focused on purchasingmodern and technologically advanced manufacturing equipment from Europe and Japan in our recentexpansion and will continue to invest in technology to improve productivity and efficiency.

History of Business

We started with a small distribution company, DLS, in 1991. We launched our first product, “KinoCandy”, in 1997 which was manufactured by our affiliate, PT KSI. PT KSI produced confectioneries,snacks and powdered drinks and PT KSI was dissolved in 2013, following the injection of its foodmanufacturing business into PT MKI.

The personal care business that we now own began with the launch of “Ovale” under PT KEK (laterrenamed “PT Kino Indonesia Tbk”) in 2000, which now produces personal care products, beveragesand pharmaceutical products. Our personal care business is now the largest of our four business

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divisions with the “Ellips” and “Ovale” brands successfully defending their positions as top brands atthe 2015 Consumer Choice Top Brand Awards. In 2003, we introduced the “Sleek” brand to facilitatea move into the baby care and homecare markets, which has grown over the last 12 years to encompass13 different baby care and homecare products as at 30 June 2015.

Our beverages business grew significantly in 2012 and 2011 with the acquisition of two productionlicenses from Tampico Beverages Inc. USA and Wen Ken Drug Pte Ltd to manufacture and sell“Tampico” juice drinks and “Cap Kaki Tiga” remedy drinks respectively.

In 2013, our food business was strengthened when our Company and Mr. Harris Sanusi established ajoint venture, PT MKI, with Morinaga & Co. Ltd. PT MKI is currently manufacturing a variety ofconfectioneries, snacks and powdered drinks that PT KSI previously manufactured, and it commencedproduction of its first Morinaga branded product in the second half of 2015. PT MKI will also beginimporting Morinaga products in 2016. We have a 29.4% equity interest in PT MKI and DLS is the soledistributor of the food products manufactured by the joint venture. PT KSI ceased to produce foodproducts after the joint venture was established and was dissolved on 14 November 2013.

Our pharmaceutical business is still in its early stages of operations with two types of products, herbalcough remedy and balms, under “Cap Kaki Tiga” brand.

We expanded our business in Southeast Asia in 2003 with the establishment of KCM in Malaysia andin 2004 with the establishment of KCP in the Philippines. In 2013 we established KVC andincorporated Kino International in Singapore, and in 2014 Kino International became the holdingcompany for our overseas distribution companies. In relation to our overseas operations, we focus onexporting personal care products only. KCP focuses on the distribution of a few flagship personal carebrands and launched first brand, “Ellips Cologne”, in 2004.

Most of our businesses and brands have been established for many years now, with a product mixconsisting of 20 brands and 664 SKUs on the market as at 30 June 2015, a number of which are inleading market positions.

The following chart sets forth our historical milestones:

1997•

1999

1991•

•

2003•

2004•

2011•

2012•

2013

••

2014

••

PT KSI was established to produce confectionaries, snacks and powdered drinks

DLS was established.

PT KEK was established and began producing toiletries, cosmetics, personal care, beverages and pharmaceuticals.

KCM was established.

KCP was established.

PT KEK obtained a production licence from Wen Ken Singapore to make and sell “Cap Kaki Tiga” in Indonesia.

PT KEK obtained a production licence from Tampico Beverages Inc. USA.

PT MKI was established following a joint venture agreement with Morinaga & Co, Ltd.Kino International and KVC were established.

PT KEK changed its name to PT Kino Indonesia and underwent a corporate restructuring.Kino International became the holding company of KCP, KCM and KVC.

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Overview of Business Divisions

Our principal brands are spread across our four main business divisions as follows:

Personal Care Beverages Food(3) Pharmaceuticals

Ellips & Sasha (Haircare)(4)

Cap Kaki Tiga(Remedy drinks)(1)(2)

Kino Candy(Confectioneries)(2)(5)

Cap Kaki Tiga (Herbalcough remedy)(1)

B&B, Eskulin Disney& Master Kids(Children’s personalcare) (2)(4)(7)

Panther (Energydrinks)(4)(7)

Segar sari (Powdereddrinks)(5)

Cap Kaki Tiga(Balm)(1)

Resik-V & Absolute(Intimate hygiene)(4)

Panda (Herbaldrinks)(4)

Snack it (Snacks)(2)(6)

Ovale (Skin care)(4) Tampico (Juicedrinks)(1)

Eskulin (Fragrance)(2)(4)

Sleek (Baby)(4)

Master (Men)(4)(7)

Notes:

(1) Licensed from third party

(2) Character licensing

(3) Manufactured by PT MKI

(4) Owned by our Company

(5) Owned by Mr. Harry Sanusi

(6) Owned by PT MKI

(7) In the process of registration with the Directorate General of Intellectual Property of Rights

Personal Care

The personal care business is our largest business division, accounting for 51.1%, 51.7%, 41.6% and

50.2% of our sales in 2012, 2013 and 2014 and the six months ended 30 June 2015, respectively. Our

personal care business contributed to 55.6%, 66.2%, 59.3% and 64.7% of our gross profit in 2012,

2013, 2014 and the six months ended 30 June 2015, respectively. Our personal care business began

with the launch of the “Ovale” brand in 2000. We produce a wide range of personal care products that

cater to both children and adults, including hair care, fragrances, bath and shower, men’s grooming,

baby and child-specific products. Our target consumer segment is middle to higher income consumers.

As at 30 June 2015, we had 534 SKUs for personal care products in production, spanning 11 brands.

Our best-selling brands are “Ellips”, “Ovale” and “Resik-V”.

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The following table contains a breakdown of all of the personal care brands we produced as at 30 June

2015:

Brand Categories Sub-categories

Year of

Launch

Number of

SKUs Target Group Brand Image

Ellips Hair care Four 2005 76 Female 20 —39 years old

Sasha Hair care Three 2007 31 Female 20 —39 years old

Ovale Skin care Nine 1999 61 Female 20 —39 years old

Eskulin Fragrance Four 2000 39 Female 15 —29 years old

Resik-V Intimatehygiene

Six 2002 44 Female 20 —39 years old

Absolute Intimatehygiene

Three 2000 six Female 15 —29 years old

Master Malegrooming

Two 2001 30 Male 15 — 29years old

B&B Kids Children’scare

Eight 2003 65 Male/Female 5— 12 years old

Eskulin Kids Girls care 12 2004 75 Male/Female 5— 12 years old

Master Kids Boys care Six 2005 45 Male 5 — 12years old

Sleek Babycleanser

Five 2008 62 babies underfive years old

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Plants

Our Cikembar plant in West Java, built in 1999, focuses on the manufacture and production of personalcare products. This facility had 45 production lines as at 30 June 2015. The following table sets forthinformation relating to production of personal care products for the periods indicated.

Year Ended 31 December

Six Months

Ended

30 June

2012 2013 2014 2015

(In kilolitres, except percentages)

Production volume 15,904 20,588 19,073 15,753

Production capacity at end of period 22,280 28,987 29,691 19,014

Utilisation (%)(1)

71% 71% 64% 83%

Note:

(1) Calculated based on the production volume for the period divided by the weighted average production capacity for therelevant period. The decrease in the utilisation rate in 2014 was due to the decrease in production volume in that yearas a result of the discontinuation of some exported products, while our sales in 2014 increased primarily as a result ofnew product launches, such as Resik-V Keset Wangi and Eskulin Frozen and our expanded distribution network.

Competition

We compete on a brand basis in the personal care segment. We seek to develop and market brands andproducts in selective areas that are not saturated with other brands and products. We believe that onceour products become popular and if we are first movers, it is difficult for others to compete with usas consumers have very strong brand loyalty. Our personal care products compete in the medium topremium price segments. Our main competing brands in Indonesia are “Pucelle” by PT MandomIndonesia, “Cussons” by PT Cussons, “Sari Ayu” by PT Martha Tilaar and “Kodomo” by PT LionWings.

While we do not seek to compete with large FMCG competitors, we place great emphasis on theinnovation and development of our products and seek to differentiate ourselves from large FMCGcompetitors via our product range, brand equity in selective market segments and extensivenationwide distribution network.

According to The Nielsen Company Indonesia, in terms of total retail sales value in the year ended31 December 2014, we were the market leader in five personal care product categories: ‘hair vitamin’,with a 80.2% market share; ‘intimate hygiene’, with a 67.0% market share; ‘splash cologne’, with a29.1% market share; ‘2-in-1 cleanser’, with a 50.2% market share; and ‘kids personal care’, with amarket share of 40.0%.

Beverages

Beverages is our second largest business division, accounting for 44.4%, 39.9%, 35.0% and 36.2% ofour sales in 2012, 2013, 2014 and the six months ended 30 June 2015, respectively. Our beveragesbusiness contributed to 42.8%, 31.5%, 35.8% and 32.6% of our gross profit in 2012, 2013, 2014 andthe six months ended 30 June 2015, respectively. We started our beverages business in 2004 with thelaunch of “Panther Cup” energy drink. We introduced our key beverage products, “Panther” energydrink and Panda herbal drink, into the market in 2006 and 2009 respectively. Our beverages businessgrew significantly in 2012 and 2011 with the acquisition of two production licenses from TampicoBeverages Inc. USA and Wen Ken Drug (Pte) Ltd to manufacture and sell “Tampico” juice drinks and“Cap Kaki Tiga” remedy drinks. Our beverage products now include remedy drinks, energy drinks,herbal drinks and juice drinks. We had 54 SKUs for beverages in production as at 30 June 2015,spanning four brands.

— 132 —

The following table contains a breakdown of the beverage brands we produced as at 30 June 2015:

Brand Categories Sub-categories

Year of

Launch

Number of

SKUs Target Group Brand Image

Cap KakiTiga

Remedydrinks

Four 2011 28 Male/Female10 — 54 yearsold

Panther Energydrinks

Two 2006 14 Male 15 — 31years old

Panda Herbaldrinks

One 2009 Ten Male/Female20 — 34 yearsold

Tampico Juicedrinks

One 2015 Two Male/Female10 — 24 yearsold

Plants

We have three plants for our beverage products, namely Cidahu located in West Java and Cikande

located in Banten province, built in 2014 and 2002 respectively, and Pandaan located at East Java,

built in 2008. These facilities had ten production lines as at 30 June 2015. The following table sets

forth information relating to production of our beverage products for the periods indicated.

Year Ended 31 December

Six Months

Ended

30 June

2012 2013 2014 2015

(In kilolitres, except percentages)

Production volume 78,462 89,232 107,150 63,001

Production capacity at end of period 125,228 127,982 154,122 83,994

Utilisation (%)(1) 63% 70% 70% 75%

Note:

(1) Calculated based on the production volume for the period divided by the weighted average production capacity for the

relevant period. In 2013, the utilisation increased in line with the increasing production volume and production capacity.

— 133 —

Competition

Our beverage products compete in the medium to premium price segments. Our main competingbrands in Indonesia include “Cap Badak” by PT Sinde Budi Sentosa and “Adem Sari” by Enesis.According to Euromonitor International, our Asian speciality drinks, which includes our “Cap KakiTiga” ready-to-drink remedy drink and our “Panda” herbal drink, achieved a 35.7% market share inthe Asian speciality drinks segment and a 46.2% market share of remedy drinks products, each interms of total retail sales value in the year ended 31 December 2014.

Food

Our third business division is our food division accounting for 4.3%, 7.8%, 23.2% and 13.4% of oursales in 2012, 2013 and 2014 and the six months ended 30 June 2015, respectively. Our food businesscontributed to 1.0%, 1.9%, 4.7% and 2.6% of our gross profit in 2012, 2013, 2014 and the six monthsended 30 June 2015, respectively. Our food business started with the launch of first productmanufactured by our affiliate, PT KSI, “Kino Candy”, in 1997. PT KSI produced confectioneries,snacks and powdered drinks in the Sayung and Terboyo plants and DLS distributed PT KSI’s productsthrough owned branches until November 2013.

Our Company and Mr. Harris Sanusi established a joint venture, PT MKI, with Morinaga & Co. Ltdin July 2013. See “Material Contracts — Joint Venture Agreement” for further details. The focus ofthis joint venture is the manufacturing of premium branded confectionery and snacks. Furthermore,this joint venture has provided us with access to Morinaga & Co. Ltd’s current and future trademarksand products. We own a 29.4% share of PT MKI. Morinaga & Co. Ltd has over 100 years of experiencein food manufacturing and we believe this strategic joint venture partnership will help our growth interms of knowledge in both product development and marketing. PT MKI had 68 SKUs in productionas at 30 June 2015. In October 2013, DLS and PT MKI entered into a distribution agreement, underwhich PT MKI appointed DLS to be the sole distributor of its products in Indonesia. The distributionagreement is valid for five years. See “Related-Party Transactions—Distribution Agreements—Distribution Agreement between DLS and PT MKI” for further details. Confectioneries, snacks andpowdered drinks are currently sold under the Kino Candy, Segar Sari and Snackit brands, respectively.We expect that this joint venture will assist us in expanding the portfolio of food products wedistribute and increasing sales generated by our food division.

The following table shows a breakdown of the food brands PT MKI produced as at 30 June 2015,comprising 68 SKUs spanning three brands:

Brand Categories Sub-categories

Year of

Launch

Number of

SKUs Target Group Brand Image

Snackit Snacks Three 2009 Eight Male/Female 5— 40 years old

Kino Candy ConfectioneryFive 1997 37 Male/Female 5— 35 years old

Segar Sari Powdereddrinks

Five 2009 23 Male/Female 7— 35 years old

— 134 —

Plants

The Terboyo plant and the Sayung plant built in 1997 and 2004 respectively, manufacture

confectioneries, snacks and powdered drinks. The factories were previously owned by PT KSI and

were transferred to PT MKI in November 2013. These two facilities had 11 production lines as at 30

June 2015. The following table sets forth information relating to production of food products by PT

MKI for the periods indicated.

Year Ended 31 December

Six Months

Ended

30 June

2012 2013 2014 2015

(In kilograms, except percentages)

Production volume — 2,136,044 11,534,493 3,073,995

Production capacity at end of period — 2,299,463 15,963,744 4,988,332

Utilisation (%) (1) — 92.9% 72.3% 61.6%

Note:

(1) Calculated based on the production volume for the period divided by the weighted average production capacity for the

relevant period. As PT MKI is a relatively new enterprise, its utilisation rate is expected to fluctuate in the first few years.

Competition

Our food products currently compete in the lower to medium price segments. Our main competing

brands in the food products sector include “Pop Ice” by PT Forisa Nusapersada and “Blaster Candy”

by PT Orang Tua. PT MKI commenced production of its first Morinaga premium branded product in

the second half of 2015, targeting the premium price segment.

Pharmaceuticals

The pharmaceuticals division of our business is still in its early stages of operations, with two “Cap

Kaki Tiga” product ranges being produced at present, a herbal cough remedy (Obat Batuk Madu Cap

Kaki Tiga) and a balm (Balsem Cap Kaki Tiga), available in three variants, used to treat joint pain,

headache and flu symptoms, totalling eight SKUs as at 30 June 2015, spanning two brands.

The following table shows a breakdown of the pharmaceutical brands we produced as at 30 June 2015:

Brand Categories Sub-categories

Year of

Launch

Number of

SKUs Target Group Brand Image

Balsem CapKaki Tiga

Balm One 2012 Six General

Obat BatukMadu CapKaki Tiga

Herbalcoughremedy

One 2014 two General

— 135 —

Plants

Our Cikande factory located in Banten province, built in 2002, manufactures pharmaceutical products.This factory had two product lines as at 30 June 2015. The following table sets forth informationrelating to production of pharmaceutical products for the periods indicated.

Year Ended 31 December

Six Months

Ended

30 June

2012 2013 2014 2015

(In kilolitres, except percentages)

Production volume — 30 55 9

Production capacity at end of period — 207 409 204

Utilisation (%)(1) — 15% 13% 4%

Note:

(1) Calculated based on the production volume for the period divided by the weighted average production capacity for therelevant period.

Sales and Marketing

Domestic Distribution

We sell our products, and PT MKI sells its food products, in Indonesia through our subsidiary, DLS,which in turn distributes all products through branches it owns and third-party local distributors. DLSbecame the sole distributor of our Company and PT MKI in August 2014 and October 2013,respectively. See “Related-Party Transactions — Distribution Agreements — Distribution Agreementbetween DLS and PT MKI” and “Related-Party Transactions — Distribution Agreements —Cooperation Agreement between our Company and DLS”. Before DLS became the sole distributor ofour Company and PT MKI, our Company and PT KSI, our affiliate which previously manufacturedfood products, sold their products to DLS and to third-party local distributors directly, and DLSdistributed the products through owned branches only. The distribution services of DLS are exclusiveto our Company and PT MKI, and DLS does not distribute products for any other manufacturers.Under this distribution arrangement, all of the food products manufactured by PT MKI are distributedby PT DLS while previously only a portion of the products manufactured by PT KSI were distributedby DLS. PT MKI provides DLS with certain discounts based on a purchase price list provided by PTMKI. This change in the distribution arrangement was carried out to ensure the alignment of ourbusinesses and to capture all food products manufactured by PT MKI.

DLS has four business units which correspond to our four business divisions, namely a personal caredivision, a beverages division, a food division, and a pharmaceutical division. DLS was establishedin 1991 and, as at 30 June 2015, it had a total of 29 owned branches and 124 local distributors withwhom DLS has entered into 189 distribution agreements (totalling 211 distribution centres). DLS mayenter into more than one distribution agreement for different business divisions with one localdistributor, and one local distributor may have more than one direct reach distribution outlet. DLS,through owned branches and third-party local distributors, provides us with an extensive distributionreach across 35 provinces in Indonesia, with access to 941,106 direct and indirect outlets nationwide,including those in the regions of Java, Bali, Nusa Tenggara, Sumatera, Kalimantan, Sulawesi, Malukuand Papua. As at 30 June 2015, DLS’s sales force included 1,803 personnel including 961 personnelfrom owned branches and 842 personnel from third-party local distributors. The sales force isresponsible for liaising with direct and indirect outlets for the marketing and promotion of ourproducts as well as the gathering of market intelligence and providing feedback to us. In 2014 and thesix months ended 30 June 2015, DLS owned branches contributed to approximately 39% and 44% ofour sales respectively, while the remaining 61% and 56%, respectively, were contributed by localdistributors.

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DLS’s own branches are mostly located in the Java and Bali areas where the majority of the population

is based and where we believe consumers generally have greater spending power. Owned branches

provide us with most control and, therefore, where it makes financial sense, we plan to increase the

number of owned branches and the proportion of sales from owned branches. See “— Business

strategies — Continue to expand our distribution and sales network within Indonesia” above.

However, the expansion plan (including the number of owned branches and the timeline) is subject to

adjustment from time to time based on our review of the performance of owned branches. See also

“Risk Factors — Risks relating to our Business and Industry — We may encounter difficulties in

expanding our distribution network.” For owned branches, we directly collect the sales proceeds from

the branches and are responsible for inventory and the sales personnel employed at the branches. In

line with industry practice, our owned branches generally do not enter into any long-term sales

contracts with direct and indirect outlets, and most of the sales are made on a short-term basis with

order cycles typically ranging from seven to 14 days.

The local distributors purchase our products as principal and on-sell them to retail and wholesale

customers through various channels based on our suggested pricing structure. This strategy enables us

to increase the exposure of our brands across more consumers and a broader geography, and benefit

from increased revenue without having to incur the investment costs and inventory risks associated

with establishing branches in those areas. This model also enables us to recognise revenue upfront,

reduce bad debts and inventory risks and penetrate into different regions in Indonesia. We recognise

our revenue from the sale of our products to local distributors upon delivery of the goods to them. We

select local distributors on the basis of their coverage of sales network, track record performance and

financial resources.

We have short-term, usually one year, distribution agreements with local distributors, also known as

Surat Perjanjian Kerjasama (SPK) or Perjanjian Kerjasama Sub-Distributor, which govern sales

territory, discounts, logistics, and return policies. We may enter into separate distribution agreements

with the same local distributor for different business divisions. Each of the local distributors is

generally given exclusivity over the area in which it operates. We believe this leads to increased

loyalty and provides greater incentives to our local distributors to expand our market share within

their respective exclusive territory. The distribution agreements are terminable by either party with

three months’ prior written notice and by us upon the occurrence of certain events, such as when the

local distributor has breached the distribution agreement. It is not our policy to accept the return of

products we have sold unless there are product quality issues, in which cases we will replace the

products first. Almost all of our local distributors are independent third parties. We have maintained

stable working relationships with most of our local distributors during the last three and a half years

and have engaged many of them for more than five years. The following table provides the number

of distribution agreements we entered into with local distributors and the turnover for the periods

indicated:

Year ended 31 December

Six months

ended

30 June

Local distributors 2012 2013 2014 2015

Added during the period Eight — 42 Ten

Terminated during the period — One Four Two

Total at end of period 144 143 181 189

— 137 —

Our products are sold to end-consumers through various channels, including general trade, modern

trade and institutional trade. As at 30 June 2015, we had access to 941,106 direct and indirect outlets

through these trade channels. The following table provides the number of our direct and indirect

outlets for the periods indicated:

Year ended 31 December

Six months

ended

30 June

2012 2013 2014 2015

Direct outlets of DLS owned branches (directcover) 133,976 160,778 181,007 201,076

Indirect outlets through local distributors(secondary reach) 537,047 554,239 713,920 740,030

Total direct and indirect outlets at end ofperiod 671,023 715,017 894,927 941,106

General Trade

General trade remains a strong and important channel despite the expansion of modern trade. The

majority of stores in the general trade channel are kiosks and semi-permanent stores as well as

cosmetic stores for personal care products. As at 30 June 2015, this channel included 892,138 direct

and indirect outlets and contributed to approximately 65% of our sales in the six months ended 30 June

2015. We believe that our extensive distribution operation through this channel is a key competitive

strength for us as the difficulty in establishing extensive direct and indirect outlets in this channel

creates a strong barrier to entry for smaller competitors and new entrants.

Modern Trade

The modern trade channel includes large chain operators such as Carrefour, Alfamart, Hypermart and

Lotte. We have a strong relationship with these key account holders at senior management level. We

also have a specialised team tasked with managing our modern trade key accounts. Aside from our

modern trade key accounts, there are approximately 7,600 independently owned outlets in this sales

channel. We also have a dedicated business manager and trade marketing team catering to these

independent modern trade accounts. As at 30 June 2015, this channel included a total of 33,097 direct

and indirect outlets and contributed to approximately 33% of our sales in the six months ended 30 June

2015.

Institutional Trade

Institutional trade accounts are on-premises sales such as in pharmacies and drug stores, airports,

highway rest areas, karaoke bars, canteens and restaurants. As at 30 June 2015, this channel included

15,871 direct and indirect outlets and contributed to approximately 2% of our sales in the six months

ended 30 June 2015. Nevertheless, this channel provides us with additional product visibility avenues.

— 138 —

The following chart illustrates our current major distribution and sales model:

PT Kino Indonesia PT MKI

DLS

Branches Local Distributors

General Trade

Modern Trade

Institutional Trade

General Trade

Modern Trade

Institutional Trade

End Consumers

International Distribution

We have sales and distribution operations in the Philippines, Malaysia and Vietnam. Such overseas

operations focus on distribution of our personal care products, which accounted for 1.8%, 4.0%, 3.8%

and 4.2% of our sales in 2012, 2013, 2014 and the six months ended 30 June 2015, respectively. In

particular, we export products to the Philippines through KCP and its 27 local distributors, to Vietnam

through KVC and its one local distributor with which it has an exclusive distribution arrangement, and

to Malaysia through KCM and its one local distributor with which it also has an exclusive distribution

arrangement. Distribution to other countries, including Australia, New Zealand, China, Japan,

Myanmar, Cambodia, Singapore, Thailand, Brunei, Palestine, Iraq, Tunisia, South Korea, Egypt and

Yemen is conducted directly by us and our overseas distributors. Our distribution agreements with

these overseas distributors grant our distribution partners the exclusive right to sell particular products

or product ranges in particular territories.

Philippines

The Philippines is our largest overseas presence. KCP commenced our Philippines operations in

January 2004. The first brand we launched in the Philippines was Ellips Cologne, followed by other

personal care brands such as Ellips Hair Vitamins and Sasha Colorant.

KCP was a national distributor until 2006, at which point it developed to become a regional

non-exclusive distributor. Our Philippines operation included 24 people as at 30 June 2015. KCP

recorded sales of Rp47,077 million, Rp46,574 million, Rp65,233 million and Rp42,649 million

(US$3.2 million) in 2012, 2013, 2014 and the six months ended 30 June 2015, respectively.

— 139 —

Our business strategy for the Philippines is to focus on a few flagship brands, namely Ellips Cologneand our Kids range. We plan to leverage brand names for synergy in developing other products withinthe Ellips ranges. The marketing of the Kids range, Ellips Hair Vitamins and Sasha Colorant brandsis specifically targeted at those born after 1995. KCP uses social media (Facebook, Twitter andInstagram), TV, print and in-store promotions for promoting and advertising our products to this targetgroup. KCP has also used local celebrities in various advertising campaigns to help generateawareness, for example, for the Ellips Cologne.

KCP has two key retailers: SM Group (a key retailer and one of the largest in the Philippines with over200 retail stores nationwide), and Mercury Drug (a pharmacy store) which enters into agreementsdirectly with KCP’s local distributors. Furthermore, KCP had 27 local distribution partners in thePhilippines as at 30 June 2015.

Product Development and Innovation

We believe that product development has been one of the keys to our growth and success. We continueto engage in product innovation and rejuvenation to meet changing consumer preferences and needs,to keep pace with the evolution of technology, and to maintain our competitiveness. We continuallyevaluate the market to gain a better understanding of consumer preferences, and we also continuallyreview new products as well as the packaging and presentation of our existing products. From timeto time, we introduce new product lines. We have tended to focus on creating brands and products inareas that are not saturated by other products and brands. We believe that this approach is mosteffective where our products are the “first movers”, as this allows us to attempt to create the marketfor our product.

We had 99 personnel in our Quality & Development (Q&D) team as at 30 June 2015 (including 19personnel for PT MKI mainly focused on food products), comprising 29 chemists, 28 pharmacists, 17food technologists, 16 chemical engineers, seven food nutritionists and two biologists. Most of ourQ&D personnel have a Bachelor’s degree or above. The innovation process of a new product typicallytakes about 18 months from capturing ideas to product launching. The following chart illustrates ourproduct innovation process:

18 Months

market visit,

Concept Development Final Evaluation Launch

Capturing consumer need and future trends through:

research,

visit exposition, workshop and desk study

Choosing the right concept:

consumer behaviour, competitor analysis, legal issue, brand equity and concepttest

Comprehensive development on:

formulation, packaging and design, prototyping, communication and sensory test

Commercial product going to consumer, with proper:

marketing plan, budgeting, distribution plan, sales training, brand communication and market education strategy

Idea

Fine tuning and mass production preparation:

technical specification; trial production, quality standardisation, business analysis, final communication strategy and BPOM registration

To support product innovation and rejuvenation, we collaborate with external parties to benefit fromtheir expertise in specified fields, for example we work with the Wacker and Lubrizol Laboratories inSingapore, the Seppic Laboratory in Shanghai and the Ashland Laboratory in Mumbai on thedevelopment of hair styling products. We are also currently exploring the prospect of collaboratingwith the Pharmacy Department of Gadjah Mada University with respect to phytopharmaca products.These collaborations primarily focus on formulation development. Furthermore, we recognise the

— 140 —

importance of understanding recent product trends and the need to constantly develop our teamknowledge. Therefore, we regularly hold training sessions, seminars and development workshops. Forthe years ended 31 December 2012, 2013 and 2014 and the six months ended 30 June 2015, ourresearch and development expenses were Rp1,429 million, Rp1,307 million, Rp2,505 million andRp908 million respectively. Personal care products are allocated the largest portion of our spendingon research and development.

Our joint venture with Morinaga & Co. Ltd, PT MKI, is an important avenue through which we engagein food product development and innovation. Morinaga & Co. Ltd, with over 100 years of experiencein the food manufacturing industry, contributes expertise and innovative products to the joint venture,to which we add the ability to adapt these products to the local tastes and preferences of consumers.This joint venture has also enhanced our product development and marketing knowledge by providingus access to premium brands and more advanced technologies. This joint venture has provided us withaccess to Morinaga & Co. Ltd’s current and future trademarks and products.

Marketing

We believe that our strong brand recognition and reputation have been instrumental to the success ofour business. We promote our brands through a variety of marketing and promotional activities. Ourmarketing utilises the following techniques: above the line - consisting of TV ads (our most importantmarketing channel), program sponsorship and billboards; in-store programs - consisting of displays,category management, brand ambassadors, and in-store promotions; out of store activation - consistingof brand launch and consumer engagement; and distribution - consisting of customer relationshipprograms and geographical expansion. We also have a display program to assist us in persuadingretailers that our products should be prominently displayed. Our advertising and promotion expensesrepresented approximately 22.8%, 21.2%, 15.3% and 15.2% of our sales for the years ended 31December 2012, 2013, 2014 and the six months ended 30 June 2015.

We meet with our local distributors to collect feedback and exchange ideas regarding market trendsand consumer response to our products. We also communicate our latest marketing strategies,including new product launches, with our local distributors to maintain a consistent business operationand brand image across our sales and distribution network.

We had a total of six senior management staff in charge of marketing as at 30 June 2015. Themarketing team is divided into separate divisions comprising product innovation, insight and planning,personal care, beverages, pharmaceuticals, and marketing communication.

Customers

The majority of our sales are made to DLS’s local distributors and our overseas distributors. Theremaining sales are made through owned branches to wholesalers and retailers. Sales through DLS’slocal distributors accounted for approximately 61% and 56% of our sales in 2014 and the six monthsended 30 June 2015 respectively. Overseas exports accounted for 1.8%, 4.0%, 3.8% and 4.2% of oursales in 2012, 2013 and 2014 and the six months ended 30 June 2015 respectively.

We have a diversified customer base. No single customer contributed over 10% of our sales for theyears ended 31 December 2012, 2013, 2014 and the six months ended 30 June 2015.

Depending on the product, we typically provide credit terms of between 14 days and 45 days to ourcustomers, but occasionally we provide terms of up to 60 days. We may also extend the credit termsif there is a delay in the delivery of our products caused by bad weather, natural disasters or otherreasons beyond our control. The extension will generally be equal to the days of such delay indelivery. Our overseas distributors are not offered credit terms. We do not sell any of our products ona consignment basis.

— 141 —

Pricing

Our products compete in various market segments. Our personal care, pharmaceutical and beveragesproducts compete in the medium to premium price segments, while our food products currentlycompete in the lower to medium price segments. We expect to gradually expand our target consumersegment to focus increasingly on the premium price segment when PT MKI launches premium brandedMorinaga food products. We generally price our products having regard to our corporate andmarketing strategies, input costs, purchasing power, competition and logistics expenses. For example,in the past we have adjusted our prices in response to increasing raw material costs, and also inresponse to the prices charged by our competitors.

We typically set a suggested pricing structure for our local distributors and wholesalers, and sell ourproducts at a price that will enable the local distributors and wholesalers to achieve certain margins.Our local distributors resell, directly or through other intermediaries (such as sub-distributors orwholesalers), to end-consumers. During holiday seasons we offer price promotions which are usuallyimplemented in a number of ways: (i) local distributors will bear the cost of the discount; (ii) we willreimburse the local distributors; or (iii) we will share the costs with local distributors.

Raw Materials and Suppliers

Raw Materials

Our primary raw materials are sugar, alcohol, gelatine, emollient, surfactant, fragrance and packagingmaterials such as aluminium cans and plastic bottles. We procure all of our raw materials from withinIndonesia except for aluminium cans, which we import from Singapore and Taiwan, and gelatine,which we import indirectly from China. Raw materials (including packaging materials) accounted for79.2%, 71.2%, 56.5% and 60.6% of our cost of sales in 2012, 2013, 2014 and the six months ended30 June 2015.

Sugar

Sugar is our largest raw material component, and is used primarily to manufacture beverages andcandies. We procure sugar from PT Sugar Labinta. We entered into a short-term supply contract withPT Sugar Labinta in March 2015. The contract will expire in December 2015. For our beverageproducts, we use udolf as a sweetener made from corn. We procure udolf from PT Dian Cipta Perkasa,PT IMCD Indonesia, and PT Parit Padang. We entered into supply contracts with these suppliers in2012, 2013 and 2011, respectively. The contracts are effective unless a written notice of terminationis provided by either party.

Alcohol

Alcohol is our second largest raw material component, and is used primarily to manufacture personalcare products. We procure ethyl alcohol from PT Parama Mandyadana pursuant to a decree issued bythe Ministry of Finance. The decree is valid until 31 October 2016.

Gelatine

Gelatine is our third largest raw material component, and is used as raw material to manufacture softcapsules, especially for our personal care products. We procure gelatine from PT Megasetia AgungKimia and entered into a long-term supply contract with PT Megasetia Agung Kimia in 2006. Thecontract will expire in December 2015.

Emollient

Emollient (moisturiser) is our fourth largest raw material component, and is used primarily tomanufacture personal care products. We procure emollient from PT Avantchem. We entered into along-term supply contract with PT Avantchem in 2006. The contract is effective unless a written noticeof termination is provided by either party.

— 142 —

Surfactant

Surfactant is also one of our primary raw materials, and is used to manufacture personal care products,

such as shampoo, body wash and toothpaste. We procure surfactant from PT BASF Care Chemicals

Indonesia. Although we have not entered into any long-term supply contract with PT BASF Care

Chemicals Indonesia, it has been our supplier since 2003. We place purchase orders with PT BASF

Care Chemicals based on our production needs.

Fragrance

Fragrance is also one of our primary raw materials which is used to manufacture personal care

products. PT Mane Indonesia is our principal supplier of fragrance. We entered into a long-term supply

contract with PT Mane Indonesia on 23 July 2014.

Packaging and Other Materials

We package our products in a variety of packaging materials, including plastic film, plastic bottles,

aluminium cans, glass bottles, EPS cups and corrugated cardboard. Other raw materials used in our

products include essential oil, fragrances, nitrogen, herbs with healing properties, spices, various

seasonings, flavourings, vitamin and mineral supplements and chocolate. These raw materials are

generally available from numerous suppliers. We also use water as a raw material, primarily for certain

of our beverages products and personal care products. Our operations have not experienced any water

shortages.

Suppliers

As at 30 June 2015, we had 490 active suppliers. Of our total raw material purchases, purchases from

our top ten suppliers comprised approximately 53% and 54% of our procurement of raw materials in

2014 and the six months ended 30 June 2015, respectively.

We are generally not dependent on any one supplier as we can easily engage other suppliers if

required. Factors such as efficiency, reliability, capacity, pricing and services are considered before

selecting a supplier. No single supplier accounted for more than 10% of our total cost of sales during

2012, 2013, 2014 and the six months ended 30 June 2015. None of our Directors, key management or

Controlling Shareholders is related to or has any interest, direct or indirect, in any of our suppliers.

Depending on the product, we typically obtain credit terms of between 45 and 90 days from our

suppliers. Since 2014, we have renegotiated supply contract terms with a number of suppliers. We

offer quicker payment for better pricing terms and we generally conduct annual audits of our major

suppliers.

— 143 —

Awards and Certifications

Our brands have received many awards over the years. The table below contains a selection of the

awards which we have received in the periods indicated:

2012 2013 2014 2015 (to date)

• Satria Brand Award:Cap Kaki Tiga

• Indonesian WomenSurvey 2013 #1 ChoiceBrand: Ellips, Resik-V

• SWA Indonesia BestBrand Award: CapKaki Tiga

• SWA IndonesiaOriginal Brands 2012:Master

• Frontier ConsultingGroup TOP BRANDAward: Absolute, CapKaki Tiga, Resik-V,Sasha, Eskulin Kids,Master Kids, SleekBaby

• SWA Word of MouthMarketing #1 Brand:Cap Kaki Tiga

• Warner Bros.Consumer ProductsBest Promotion: PTKEK

• SWA Word of MouthMarketing #1 Brand:Absolute, B&B Kids,Cap Kaki Tiga,Eskulin Kids

• SWA Indonesia BestBrand Award: CapKaki Tiga, Panther

• Frontier ConsultingGroup TOP BRANDAward: Absolute, CapKaki Tiga, Resik-V,Eskulin Kids, SleekBaby, Eskulin CologneGel, Ovale

• Frontier ConsultingGroup Social MediaAward 2013: Cap KakiTiga

• Indonesian WomenSurvey 2013 #1 ChoiceBrand: Resik-V, Ellips

• The Walt DisneyCompany (SoutheastAsia) Product of theYear 2013

• SWA Word of MouthMarketing #1 Brand:Absolute, B&B Kids,Cap Kaki Tiga,Eskulin Kids

• SWA Indonesia BestBrand Award: CapKaki Tiga, Panther

• Frontier ConsultingGroup TOP BRANDAward: Absolute, B&BKids, Cap Kaki Tiga,Ellips, Eskulin Kids,Ovale, Resik-V, Sleek,

• Satria Brand Award:Cap Kaki Tiga

• Merek Terkenal MostInnovative Creativity:Cap Kaki Tiga Anak

• Mother & BabyReader’s Choice Award2014

• Frontier ConsultingGroup TOP BRANDAward: Ovale, Ellips

• Superbrands 2015:Absolute, Ellips,Resik-V

• SWA Indonesia MostCreative Companies2015: PT KinoIndonesia

We also have obtained a number of certifications, including the following:

• ISO 9001:2008 Quality Standard since 2005.

• Certified Good Manufacturing Practice (GMP) since 2005.

• Certified halal for products under four of our personal care brands (“Ellips”, “Sasha”, “Ovale”

and “Resik-V”) since 2009. Also certified halal for all of our food and beverage products. The

halal certification for our beverage products (Cap Panda, Tampico and Panther) expired on 20

November 2015. We are in the process of renewing such certification with the Indonesian

Council of Ulama.

• Disney International Labour Standard & Code of Conduct since 2009. Disney audits our plants

annually and the audit focuses on employee and safety regulations.

We are also in the process of applying for ISO 22000 (Food Safety), ISO 14001 (Environmental

Safety) and ISO 27001 (IT Data Risk Management) certifications.

— 144 —

Logistics and Inventory

Inventory Management

We monitor and control the inventory levels of raw materials and finished products to optimise ouroperations. We have an inventory management system to plan and allocate warehouse space and rawmaterials stocks and finished products to match delivery requirements and schedules.

Our inventory of raw materials primarily includes sugar, alcohol, gelatine, emollient, surfactant,aluminium cans, plastic bottles and fragrance before being further processed. The level of raw materialsupplies that we typically maintain in our inventory varies depending on the sale plan, type of rawmaterial, source of supply, season and plant location. We generally divide the inventory into threecategories, fast moving (used up in less than one month), moving (used up in one to three months) andslow moving (used up in three to six months) inventory and we maintain a minimum inventory levelof 7 days, 10 days and 30 days for each category respectively. A significant amount of inventory mayresult in additional storage and handling fees, increase the risk of obsolescence and put pressure onour working capital, and we therefore actively monitor and review our inventory levels on a regularbasis and seek to maintain a reasonable level of inventories throughout our production process.

Our inventory of finished goods comprises primarily products awaiting delivery to our localdistributors and owned branches. We estimate production volume for our finished products andmaintain a proper level of inventories based on our sales forecasts. We closely monitor and assess thesales performance of relevant products so that we can adjust our product mix and relevant productionplans. We usually maintain a safety inventory level for finished goods sufficient to meet a one month’ssupply requirement in Java and one and a half months’ of supplies outside Java. We have a First-ExpireFirst-Out policy in shipping our products. We use colour and shape coding labels to effectivelycategorise and organise inventories, with 12 colours matching 12 months to easily identify expiry date.

Warehousing

We generally store the raw materials for each production facility and the finished goods produced bythat facility directly in that facility. Raw materials and finished goods are stored in dedicated areasseparate from each other in each facility. We operate 12 warehouses which are being utilised fordistribution purposes by DLS, six of which are leased from third parties. We plan to expand ourwarehouse capacity further so we can be prepared for future expansions and also to provide temporaryadditional capacity as needed. The temperatures in our warehouses are recorded daily, as some of ourproducts are temperature sensitive. We also have dedicated “cold rooms” in which we store rawmaterials which have specific temperature requirements for quality preservation. For moreinformation on our warehouses, see “—Property, Plant and Equipment—Warehouses” below.

Transportation

Our transportation requirements for the procurement of raw materials and the delivery of finishedgoods to local distributors are met by third parties or through vans owned by us or leased from thirdparties.

Information Technology

DLS uses an integrated IT-based approach to improve efficiency in the management of sales, inventorycontrol and logistics. It uses a secure real-time connection over a Virtual Private Network (“VPN”)to keep our business units (including headquarters, plants, branches and sales force) connected. Thenetwork uses fibre optic cabling to ensure the fastest connection possible. The sales force of DLS’sowned branches is fully automated, using Android mobile devices with an application that featuresroute management, order management, stock management, cash management, credit management,GPS, presentation and survey functions. Sales staff take these mobile devices with them when they sellour products and use them to keep track of sales data and customers. The devices are linked to the

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headquarters via our secured VPN, which enables us to track sales data and monitor the performance

of our sales staff. The application used by the sales staff also tracks their route for the day. Each

salesperson has a fixed route and must enter the starting kilometre on their vehicle at the start of the

day before they begin their route. This use of mobile technology assists with ensuring an efficient

distribution of the sales team and allows management to track and analyse sales routes.

DLS promotes the implementation of automated electronic communication with its local distributors.

Currently about 90% of the local distributors have been connected through a designated portal, which

helps effectively monitor the inventory level at local distributors.

We also have a fully integrated enterprise solution architecture connecting all divisions of our

business. We have partnered with reputable information technology providers, such as Hewlett

Packard, Telkom Indonesia, Qlikview and Nielsen Spaceman Professional, to implement an integrated

IT-based approach for our business. We are in the process of applying for an ISO 27001 certificate in

IT data risk management. In order to meet the requirements of ISO 27001, we are currently upgrading

our information technology systems, which includes, among other measures, formalising and

implementing regular IT risk assessments, and developing a more comprehensive disaster recovery

plan. We expect to complete this upgrade of our information technology systems by the end of 2015.

Quality Control

We have implemented a comprehensive total quality management program and adhere to a strict

quality control system over our entire operations, from sourcing of raw materials to

processing/manufacturing, packaging, inspecting of finished goods, inventory storage and distribution

and sales. We strive to source high quality raw materials. Before appointing a supplier, we perform

a supplier audit to ensure its production process fulfils our requirements. The incoming raw materials

are inspected thoroughly through various processes to ensure that they fulfil our quality standards.

Throughout the production process and just before the finished goods are distributed, all of our

products must pass through various quality control inspections. We also monitor the inventories at our

local distributors and/or direct and indirect outlets to ensure product freshness. Defective or expired

products may be returned to us for disposal and replaced with new products. However, we generally

do not deliver products to local distributors which are within six months of their date of expiry (an

exception to this being “Tampico” juice drinks, which have a shelf-life of six months). Furthermore,

local distributors may only return products subject to a value limitation as set out in the applicable

distribution agreement.

We have held halal certification since 2009 for products under four of our personal care brands from

the Assessment Institute for Foods, Drugs and Cosmetics of the Indonesian Council of Ulama (LPPOM

MUI), which is required for consumption by Muslims in accordance with Islamic practices. We and

PT MKI also hold halal certification for all of our food products, beverage products, and plants. The

halal certification for our beverage products (Cap Panda, Tampico and Panther) expired on 20

November 2015. We are in the process of renewing such certification with the Indonesian Council of

Ulama.

We have held an ISO 9001: 2008 Quality Standard certificate from SGS since 2005, as well as a Good

Manufacturing Practice certificate from the Indonesian National Agency of Drug and Food Control

(FDSA). We are also regularly audited by Disney and have been certified since 2009 under the Disney

International Labour Standard & Code of Conduct.

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Licences

In conducting our business activities, we are required to hold various licenses and permits, includingan industrial business license in accordance with Government Regulation No. 13 of 1995 dated 23 May1995 on Industrial Business Licenses. We are also required to register our products pursuant to variousregulations issued by the Ministry of Health and the Food Drug Supervisory Agency. For more detailson licenses, see “Regulations — Key Licences for a Manufacturing Company”. We currently hold suchbusiness license, as well as such registrations for each of our products.

We also hold various environmental licenses; see “—Environmental Impact” below.

Environmental Impact

We consider the implementation of environmentally responsible practices and the maintenance of highenvironmental standards a valuable asset and competitive strength, in addition to significantlyreducing the impact of our operations on the environment as part of our corporate social responsibilitycommitment. Implementing environmentally responsible practices also reduces our risk of exposure toliability under environmental protection laws and regulations. We are subject to various environmentalregulations and certain undertakings that we have provided to the Government under the terms ofvarious licenses that we hold. For more information on Indonesian environmental regulations, see“Regulation — Environmental Regulations”.

We believe that our plants are compliant in all material aspects with applicable environmentalregulations. We equip all of our factories in Indonesia with the necessary facilities and employpersonnel to monitor compliance with established environmental standards. We also have acompliance manager who is in charge of overall compliance. The waste generated by our plants mainlycomprises liquid waste such as waste water. The waste has not exceeded the contamination thresholdlevels stipulated by the relevant government authorities. All of our plants comply with waste licensesrequirements and are inspected regularly for waste management. For our Cidahu plant, we haveentered into a service agreement with a third party to provide waste treatment and disposal servicesfor this plant. In our plants, a flow meter is installed to measure how much waste is disposed of everyday and fish are used to test if the water is safe to dispose.

All of our four plants have already had their Environmental Management Plan and EnvironmentalMonitoring Plan (Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan Lingkungan Hidupor “UKL-UPL”) documents approved by regional governmental authorities and have obtainedenvironmental licences.

Employees

As at 30 June 2015, we had 8,076 permanent and contract employees across the four divisions of thebusiness (including 1,945 permanent and contract employees of PT MKI). The following table sets outthe employees by function:

As at 30 June 2015

Management 29

Production and technical 5,330

Quality and development 99

Sales and marketing 1,030

Finance and accounting 295

General and administration 1,293

Total 8,076

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2,953 of the employees were contract workers (including 414 of PT MKI) as at 30 June 2015. The

contract workers are paid in accordance with minimum wage scales as determined by the Government.

Our human resources unit manages our human resource management policies. Our permanent

employees receive a compensation package which includes a base salary and various additional

allowances and benefits. Permanent employees at certain levels may also receive a discretionary

bonus. We also provide permanent employees with health benefits, which include a medical allowance

and periodic health examinations. Almost all of our plants have a health clinic. All of our permanent

employees are covered by the Government-sponsored social security insurance fund (Jamsostek,

which is now, Health and Manpower Social Security Organising Body), which involves employee and

employer contributions of a percentage of the employee’s base salary as mandated by Indonesian

regulations.

Every plant has its own Bipartite Cooperation Body (lembaga kerja sama bipartit), except for our

Cidahu plant, which is not required to establish a Bipartite Cooperation Body as the total number of

employees of this plant is below the threshold at which a Bipartite Cooperation Body is required. We

have a good relationship with these Bipartite Cooperation Bodies. We have not experienced any

strikes, disputes or industrial action to date. To further facilitate a positive and productive atmosphere

in the workplace, we hold internal meetings with employees every three months. We seek to maintain

good relationships with our employees and in the community in which we operate. We believe this

approach ensures issues can be dealt with quickly and efficiently before they become challenges for

the business.

Occupational Health and Safety

We place great importance on workplace safety in all of our operations and implement Indonesian

standards for industrial health and safety. We have obtained the required health and work safety

licenses for all of our plants. We have obtained utilisation permits for the operation of heavy

machinery. We also carry out periodic assessments on the operation of heavy machinery in our plants

and warehouses. Furthermore, all employees working in our warehouses are supplied with adequate,

job-appropriate safety equipment. We audit our production operations regularly to monitor

implementation of our safety procedures.

Intellectual Property

We consider the intellectual property rights relating to our business to be a significant and valuable

aspect of our business, particularly the trademarks that we use in connection with our business and

also certain, trade secrets, copyrights and licensing agreements. We rely on contractual arrangements

and legal protections to protect our intellectual property rights through trademarks, copyright and/or

trade secret laws, as well as including relevant restrictive terms in our licensing agreements and our

third-party non-disclosure and assignment agreements, and through the practice of policing third-party

misuse of intellectual property.

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As at 30 June 2015, we hold, or have the right to use, intellectual property rights to numeroustrademarks, including those for the majority of our principal brands, as set out below.

Personal Care Beverages Food(3) Pharmaceuticals

Ellips(4)

Sasha(4)

B&B Kids(2)(4)(7)

Eskulin Kids(Disney)(2)(4)(7)

Master Kids(2)(4)(7)

Resik-V(4)

Absolute(4)

Ovale(4)

Eskulin(2)(4)

Sleek(4)

Master(4)(7)

Cap Kaki Tiga(1)(2)

Panther(4)(7)

Panda(4)

Tampico(1)

Kino Candy(2)(5)

Segar Sari(5)

Snackit(2)(6)

Cap Kaki Tiga(1)

Notes:

(1) Licensed from third party

(2) Character licensing

(3) Manufactured by PT MKI

(4) Owned by our Company

(5) Owned by Mr. Harry Sanusi

(6) Owned by PT MKI

(7) In the process of registration with the Directorate General of Intellectual Property of Rights

We have a number of license agreements which govern our relationships with companies which allowus to utilise licensed material to which those companies possess the intellectual property rights. Thesecompanies allow us to use their licensed material to manufacture, distribute, promote and sell ourproducts in various territories, including Indonesia, the Philippines and Malaysia. Such licensedmaterial includes, among others, trademarks, recipes, and style guides. These agreements, and ourability to utilise such licensed material, assist us in extending our customer base and promotingproduct awareness in other markets.

Character Licensing

Since 2004, we have held rights, pursuant to various licensing and sub-licensing agreements, to make,sell, distribute, advertise and promote products using licensed characters. The table below sets forthour licensors and the respective licensed materials:

Licensor Licensed Materials

The Walt Disney Company (SoutheastAsia) Pte. Limited

Properties, trademark and style guide of AvengersClassic Style Guide and Spider-man Classic Style Guide

PT Walt Disney Indonesia Characters works, trademarks and Disney designelements of Disney standard characters

The Walt Disney Company (SoutheastAsia) Pte. Ltd

Characters works, trademarks and Disney designelements of “Baby Pooh” characters, Disney standardcharacters, “Disney Princess” characters, “DisneyFairies” characters, “Frozen” characters, “Sofia the First”characters and “Winnie the Pooh” characters

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Licensor Licensed Materials

Warner Bros. Consumer Products Inc. Comic book characters and other elements from the “DCComics Batman” and “DC Comics Superman” comicbook series, and the cartoon character Tweety andnames, likenesses of such character and other elementstogether with related copyrights and trademarks

Warner Bros. Consumer Products Inc. Comic book characters and other elements from the “DCComics Batman” and “DC Comics Superman” comicbook series, and the names and likenesses of suchcharacters and other elements together with relatedcopyrights and trademarks of the characters in theLooney Tunes Style Guide

Warner Bros. Consumer Products Inc. The names and likenesses of such characters and otherelements together with related copyrights and trademarksof the characters in the Looney Tunes Style Guide

Turner Broadcasting System AsiaPacific, Inc.

Characters’ names, static visual likenesses and otherelements of Ben 10, including but not limited to, thenames of actors and voice-over artists

Turner Broadcasting System AsiaPacific, Inc.

Characters’ names, static visual likenesses and otherelements of Ben 10 and The Powerpuff Girls, includingbut not limited to, the names of actors and voice-overartists

Turner Broadcasting System AsiaPacific, Inc.

Characters’ names, static visual likenesses and otherelements of The Powerpuff Girls, including but notlimited to, the names of actors and voice-over artists

Turner Broadcasting System AsiaPacific, Inc.

Characters’ names, static visual likenesses and otherelements of Ben 10 and Ben 10 — Destroy all Aliens,including but not limited to, the names of actors andvoice-over artists

The AIRD Group Pty Ltd Kimmidoll love range cologne

Mattel Europa BV The mark of “Barbie” and related logos and images

Historically, the total royalties we paid to our licensors under these licensing and sub-licensingagreements were about 0.5-0.9% of our sales revenue each year. The terms of these licensing andsub-licensing agreements range from between one and five years, and are generally on a non-exclusivebasis.

Wen Ken Drug Co (Pte) Ltd

Under a trademark license agreement dated 28 April 2011, and last amended on 15 January 2015 withWen Ken Drug Co (Pte) Ltd, we have an exclusive license to use the “Cap Kaki Tiga” trademark toproduce, sell, market, advertise and distribute goods bearing the trademark in Indonesia. We arerequired to pay a royalty to Wen Ken Drug Co (Pte) Ltd in various amounts, calculated based onspecified formulas for use of the trademark. The term of this agreement runs until 27 April 2026.

Tampico Beverages Inc. USA

Under a bottling and license agreement dated 29 February 2012, as amended on 29 October 2012, withTampico Beverages, Inc., we have an exclusive license to use the “Tampico” trademark in connection

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with the production, processing, packaging, storage, distribution and sale of certain non-alcoholic,non-carbonated fruit-flavoured juice drinks in Indonesia. Under this agreement, we are obliged topurchase formulations of fruit-flavoured concentrates exclusively from Tampico Beverages, Inc. Wemay not use concentrates from any other source, modify the “Tampico” concentrates or use the“Tampico concentrates” in conjunction with any other products or third parties, other than as expresslypermitted by Tampico Beverages, Inc. The term of this agreement runs until 30 April 2017.

Agreements with Mr. Harry Sanusi

Borrow and Use Agreement between the Company and Mr. Harry Sanusi

Our Company has entered into a borrow and use agreement with Mr. Harry Sanusi dated 10 September2015. Pursuant to the agreement, Mr. Harry Sanusi has granted full authority to our Company to usethe “KINO” trademark with registration number IDM000113271 for the purpose of our Company’sbusiness activities in each of the territories in which our Company conducts its business. No royaltypayment will be made by our Company in relation to this borrow and use arrangement. The agreementis valid for 10 years from the date of the agreement and may be extended by the parties. The agreementmay be terminated as follows: (i) by our Company if it no longer needs to use the trademark; (ii) bythe non-breaching party, if the other party has neglected or breached any of its obligations under theagreement; or (iii) by mutual agreement.

Borrow and Use Agreement between Mr. Harry Sanusi and PT MKI

PT MKI has entered into a borrow and use agreement with Mr. Harry Sanusi dated 10 September 2015.Pursuant to the agreement, Mr. Harry Sanusi has granted PT MKI the right to borrow and use the“KINO” trademarks with registration numbers IDM000267643 and IDM000113277, for the purpose ofproduction, marketing and sale of PT MKI products within and outside the Republic of Indonesia. Noroyalty payment will be made by PT MKI in relation to this borrow and use arrangement. Theagreement is valid for five years from the date of the agreement and may be extended by the parties.

Undertaking Letter of Mr. Harry Sanusi

Mr. Harry Sanusi has applied for the registration of a “KINO” trademark to the DGIP. This applicationis still being examined by the DGIP and Mr. Harry Sanusi has not received any approval or rejectionin relation to such application. Pursuant to an undertaking letter dated 10 September 2015, Mr. HarrySanusi undertakes that: (i) upon receipt of the approval of the “KINO” trademark registrationapplication, he will execute an agreement in relation to the utilisation of such “KINO” trademark withthe Company; (ii) Mr. Harry Sanusi shall promptly notify the Company in the event that DGIP rejectssuch registration application; and (iii) Mr. Harry Sanusi will not object to the use of the “KINO”trademark by the Company before the DGIP issues the Kino trademark certificate.

Statement Letter of Mr. Harry Sanusi

Pursuant to a statement letter dated 9 October 2015, Mr. Harry Sanusi has granted our Company theexclusive right to use “KINO” trademarks with registration number IDM000113271 andJ002015010997, which are still being examined by the DGIP, in connection with FMCG businessesand agreed that he will not use or grant permission to other parties to use the “KINO” trademarks inthe same or similar businesses.

Deed of Transfer of Rights of Segar Sari Trademark

Pursuant to a deed of transfer of rights dated 12 May 2015 between Mr. Harry Sanusi and PT MKI,as amended by an addendum dated 10 September 2015, the parties have agreed that, as the transferof rights of the “Segar Sari” trademarks with registration numbers (i) IDM000418298, (ii)

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IDM00041040, (iii) IDM000411576, and (iv) IDM000410762 (“Segar Sari Trademarks”) has not yet

been recorded in the General Register of Trademarks and announced in the Official Gazette of

Trademark, Mr. Harry Sanusi will not object to PT MKI’s use of the Segar Sari Trademarks in the

production, marketing and sale of PT MKI products before the transfer is officially completed.

Sale and Purchase Agreement between our Company and Mr. Harry Sanusi

Pursuant to a sale and purchase agreement dated 23 October 2015 between our Company and Mr.

Harry Sanusi, Mr. Harry Sanusi agreed to sell, and our Company agreed to purchase, the “Panther”

trademark class 32 with registration number IDM000437036 for Rp1,000,000. Mr. Harry Sanusi has

also agreed that he will not object to our Company’s use of the “Panther” trademark in our production,

marketing and selling activities before the transfer of the trademark is officially completed.

Insurance

Our significant insurance policies include property all risk, covering our plants, machinery, equipment

and vehicles. In addition, our distribution activities are covered by sales fidelity insurance. We also

maintain certain insurance coverage on marine cargo. As at 30 June 2015, our fixed assets are insured

against all risks with a coverage of Rp392,098 and inventories are insured against all risks with a

coverage of Rp258,902.

Some of our products carry product liability insurance due to the requirements of relevant licensing

agreements. Furthermore, these products also have to pass the Indonesian National Agency of Drug

and Food Control (Badan Pengawas Obat dan Makanan) requirements.

Legal Proceedings

As is common for Indonesian companies, our Company received tax assessment underpayment letters

from tax authorities for the years ended 31 December 2011, 2012 and 2013 in the aggregate amount

of Rp9,445 million (US$0.7 million) in the second half of 2014. Our Company paid the alleged

underpayment of taxes and filed objections for tax refund. As at the date of this Offering Circular, the

objections were being reviewed by the relevant tax authority. For more details, see note 17e of our

audited consolidated financial statements included in this Offering Circular.

Save as disclosed above, we are not currently involved in any material legal proceedings or

governmental investigations or enquiries and we are unaware of any material threatened claims or

legal proceedings.

Property, Plant and Equipment

Our principal executive offices and registered office are located at Jalan Cibolerang 203, Kav. 03,

Bandung, West Java 40225, premises which we own.

We also have a representative office located at Datascrip Building, 9th floor, J1 Selaparang Blok B-15

Kav. 9, Komplek Kemayoran, Central Jakarta 10610, Indonesia, premises which we lease.

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Plant

We have four plants, and PT MKI has two plants.

The following table provides certain information regarding the plants as at 30 June 2015:

No. Location Type

LandArea

(squaremetres) Type of Land Rights Owner

Expiry of LandRights/Lease Period

1 Cikande Beverages &Pharmaceuticals

162,082 HGB (land certificate:No.11/Sukatani)

Our Company 25 January 2032

HGB (land certificate:No.12/Sukatani)

Our Company 26 February 2032

HGB (land certificate:No.14/Sukatani)

Our Company 5 February 2032

HGB (land certificate:No.18/Sukatani)

Our Company 26 February 2034

HGB (land certificate:No.19/Sukatani)

Our Company 26 February 2034

HGB (land certificate:No.27/Sukatani)

Our Company 19 November 2037

HGB (land certificate:No.61/Leuwi Limus)

Our Company 4 July 2037

HGB (land certificate:No.65/Leuwi Limus)

Our Company 17 January 2038

HGB (land certificate:No.172/Nambo Udik)

Our Company 25 January 2032

HGB (land certificate:No. 218/Nambo Udik

Our Company 17 January 2038

HGB (land certificate:No. 219/Nambo Udik

Our Company 21 January 2038

2 Cikembar Personal Care 55,490 HGB (land certificateNo.27/Kertaraharja)

Our Company 7 November 2038

3 Cidahu Beverages 83,719 HGB (land certificate:No.545/Babakan Jaya)

Our Company 8 November 2043

HGB (land certificate:No.546/Babakan Jaya)

Our Company 8 November 2043

HGB (land certificate:No.547/Babakan Jaya)

Our Company 8 November 2043

HGB (land certificate:No.548/Babakan Jaya)

Our Company 8 November 2043

4 Pandaan Beverages 29,422 HGB (land certificate:No.363/Bulukandang)

Our Company 24 September 2035

HGB (land certificate:No.368/Bulukandang)

Our Company 20 May 2037

HGB (land certificate:No.462/Bulukandang)

Our Company 25 July 2043

5 Sayung Food &Beverages

42,434 Right to Build (landcertificate No.3 /Sayung)

PT MKI 24 July 2020

Right to Build (landcertificate No. 2 /Sayung)

PT MKI 16 May 2020

Right to Build (landcertificate No.19 /Sayung)

PT MKI 12 July 2031

Right to Build (landcertificate No.18 /Sayung)

PT MKI 12 July 2031

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No. Location Type

LandArea

(squaremetres) Type of Land Rights Owner

Expiry of LandRights/Lease Period

6 Terboyo Food 22,121 Right to Build (landcertificate No.63/Trimulyo)

PT MKI 1 November 2023

Right to Build (landcertificateNo.153/Trimulyo)

PT MKI 1 November 2023

Right to Build (landcertificateNo.160/Trimulyo)

PT MKI 1 November 2023

Right to Build (landcertificateNo.403/Trimulyo)

PT MKI 1 November 2023

Right to Build (landcertificateNo.346/Trimulyo)

PT MKI 1 November 2023

Right to Build (landcertificateNo.345/Trimulyo)

PT MKI 1 November 2023

Right to Build (landcertificateNo.375/Trimulyo)

PT MKI 9 September 2023

As at 30 June 2015, the six plants had 68 production lines with the total installed capacity of 237,476

kilolitres. All of the plants are powered by electricity provided by public utilities. The Cikembar plant

is equipped with three diesel power generators for back-up and our Cikande plant also has a back-up

power supply. Other plants do not have back-up power supply as the plants rarely encounter electricity

malfunctions which affect production. The plants normally undergo maintenance during the Idul Fitri

period and it usually takes four days to complete this maintenance.

Warehouses

DLS operates a total of twelve warehouses for distribution purposes, each of which is located in DLS’s

branch offices. We own six of the warehouses, and the remaining six are leased from third parties.

The following table provides certain information regarding DLS’s warehouses as at 30 June 2015:

No. LocationType of

Warehouse

LandArea of

Warehouse(m2) Type of Land Rights Ownership

Expiry of LandRights/Lease Period

1 Kapuk Distributioncentre

5,730 HGB (land certificate:594/Kamal Muara)

Our Company 30 August 2035

HGB (land certificate:598/Kamal Muara)

30 August 2035

2 Tangerang, PondokAren

Distributioncentre

3,960 HGB (land certificate:01409/Desa PondokBetung)

DLS 30 April 2038

HGB (land certificate:01410/Desa PondokBetung)

30 April 2038

3 Serang Distributioncentre

900 — Leased byDLS

29 December 2019

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No. LocationType of

Warehouse

LandArea of

Warehouse(m2) Type of Land Rights Ownership

Expiry of LandRights/Lease Period

4 Depok Distributioncentre

4,691 HGB (land certificate:5020/Sukamaju)

Our Company 14 December 2035

HGB (land certificate:5021/Sukamaju)

14 December 2035

HGB (land certificate:5022/Sukamaju)

14 December 2035

HGB (land certificate:5023/Sukamaju)

14 December 2035

HGB (land certificate:5024/Sukamaju)

14 December 2035

HGB (land certificate:5026/Sukamaju

14 December 2035

5 Bekasi Distributioncentre

6,490 HGB (land certificate:4736/Sepanjang Jaya)

Our Company 17 July 2028

HGB (land certificate:4737/Sepanjang Jaya)

17 July 2028

HGB (land certificate:4738/Sepanjang Jaya)

17 July 2028

HGB (land certificate:4739/Sepanjang Jaya)

17 July 2028

HGB (land certificate:4740/Sepanjang Jaya)

17 July 2028

HGB (land certificate:4743/Sepanjang Jaya)

20 November 2028

HGB (land certificate:4742/Sepanjang Jaya)

20 November 2028

HGB (land certificate:4744/Sepanjang Jaya)

20 November 2028

6 Bandung, Ciseureuh Distributioncentre

2,500 — Leased byDLS

2 April 2020

7 Bandung,Margasuka

Distributioncentre(1)

2,078 HGB (land certificate:10/Margasuka)

Our Company 27 October 2034

HGB (land certificate:11/Margasuka)

27 October 2034

HGB (land certificate:12/Margasuka)

27 October 2034

8 Semarang Distributioncentre

— — Leased byDLS

31 October 2017

9 Sidoarjo Distributioncentre

5,100 HGB (land certificate:1652/Tambaksawah)

Our Company 24 September 2034

10 Surabaya Distributioncentre

2,375 — Leased byDLS

1 July 2019

11 Makassar Distributioncentre

1,968 — Leased byDLS

29 April 2016

12 Denpasar Distributioncentre

3,509 — Leased byDLS

1 October 2019

Note:

(1) A part of the facility is used as our Company’s head office.

In addition, our Company has another four warehouses (excluding warehouses in the plants), which

are used for storage. Our Company owns one of these warehouses and the remaining three are leased

from third parties.

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The following table provides certain information regarding these four warehouses as at 30 June 2015:

No. LocationType of

Warehouse

LandArea of

Warehouse(m2) Type of Land Rights Ownership

Expiry of LandRights/Lease Period

1 Citeureup Storage 5,565 — Leased by ourCompany

1 May 2016

2 Jatake Storage 3,666 — Leased by ourCompany

30 November 2015

3 Semarang Storage 1,204 HGB (land certificate:252/Purwoyoso)

Our Company 3 March 2023

HGB (land certificate:255/Purwoyoso)

3 March 2023

4 Surabaya Storage 1,418 — Leased by ourCompany

13 December 2015

We also own several plots of land, which are deemed as landbanks. The following table provides certain information regarding

these landbanks as at 30 June 2015:

No. Location Type of LandLand

Area (m2) Type of Land Rights OwnershipExpiry of Land

Rights

1 Gowa Landbank 24,000 HGB (land certificate:00010/Pakkatto)

Our Company 24 September 2028

2 Kapuk Muara Landbank 3,140 HGB (land certificate:7881/Kapuk Muara)

DLS 13 August 2020

3 Sunter Landbank 123 HGB (land certificate:2636/Sunter Jaya)

Our Company 23 May 2035

Corporate Social Responsibility

We believe that corporate social responsibility is an integral part of our business. We have been

involved in various programs and activities as part of our endeavour to fulfil our corporate social

responsibility to the community at large. We have engaged in a variety of corporate social

responsibility activities, including Kino Go Green (planting trees), blood donation, HIV/Aids

socialisation, environmental sustainability activities, free medication and educational donations.

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MATERIAL CONTRACTS

The following description summarises selected provisions of certain material agreements of, oraffecting, our Company and its subsidiaries. This description is a summary and should not beconsidered to be a full statement of the terms and conditions of such agreements. For summaries ofour material contracts with related parties, see “Related-Parties Transactions”.

Financing Agreements

Our Company has entered into financing agreements with PT Bank Central Asia Tbk (“BCA”), PTBank CIMB Niaga Tbk. (“CIMB Niaga”), PT Bank Index Selindo (“Index”) and PT Bank SumitomoMitsui Indonesia (“BSMI”), and DLS has entered into facility agreements with PT Bank DBSIndonesia (“DBS”) and PT Bank Danamon Indonesia Tbk (“Danamon”).

BCA Loan Agreements

Our Company has entered into the following financing arrangements with BCA:

Facility Interest Rate Term of Loan

Local Credit Facility 1 in an amountnot exceeding Rp45,000,000,000

11.5% per annum —Up to 31 July 2016

Local Credit Facility 3 in an amountnot exceeding Rp15,000,000,000

11.5% per annum —Up to 31 July 2016

Revolving Loan Time Facility in anamount not exceedingRp107,000,000,000

11.25% per annum —Up to 31 July 2016

Investment Credit Facility 6 in anamount not exceedingRp30,000,000,000

11.25% collected once —Up to 6 July 2017

Investment Credit Facility 7 in anamount not exceedingRp25,900,000,000

11.25% collected once —Up to 13 December 2018

Investment Credit Facility 8 in anamount not exceedingRp22,100,000,000

11.25% collected once —Up to 13 December 2018

Letter of Credit Line Usance Facilityand Bank Guarantees in an amountnot exceeding US$2,000,000

— —Up to 31 July 2016

Forward Line Facility in an amount ofUS$2,000,000

— —Up to 31 July 2016

Our Company is required to pay a provision and commission fee of: (i) 0.5% per annum for LocalCredit Facility 1, Loan Credit Facility 3, and the Revolving Loan Time Facility; (ii) 0.5%, on a one-offpayment basis, for Investment Credit Facility 6, Investment Credit Facility 7, and Investment CreditFacility 8; and (iii) 0.125% for opening a letter of credit with the expiry date of six months and 1%acceptance fee per bank guarantee.

These credit facilities are secured by: (i) land and buildings owned by our Company; (ii) land andbuildings owned by Mr. Harry Sanusi; (iii) personal guaranties by Mr. Harry Sanusi; (iv) security overour machinery; (vi) security over our inventories; and (vii) security over our trade receivables.Security (ii) and (iii) are in the process of being replaced with land and buildings owned by ourCompany.

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The financing agreements contain restrictive covenants which include, among other things,

restrictions on our Company conducting the following activities without prior written consent from

BCA: (i) obtaining a new credit loan and/or binding itself as a guarantor and/or securing its assets;

(ii) granting a loan, including, but not limited to, a loan to an affiliated company, save in the ordinary

course of business; (iii) conducting a consolidation, merger, acquisition, dissolution or change of

company status; and (iv) paying interest upon shareholder loans.

In the event of an initial public offering, our Company is required to submit a written notification to

BCA setting out any of the following applicable changes: (i) change of board/management and

shareholders composition; (ii) amendment of our Articles of Association; and (ii) distribution of any

dividends. Furthermore, our Company is required to obtain prior written approval from BCA if after

the completion of the initial public offering, there is a change in our shareholders’ or board of

directors’ composition which results in Mr. Harry Sanusi no longer holding any management position

in our Company or ceasing to hold a majority of the Shares in our Company.

Under the terms of the financing agreements, our Company is further required to maintain a minimum

debt service coverage ratio (EBITDA/[interest payment + instalment payment]) of 1:1.

CIMB Niaga Loan Agreements

Our Company has entered into the following financing arrangements with CIMB Niaga:

Facility Interest Rate Per Annum Term of Loan

Fixed Credit Facility with a creditamount of Rp177,000,000,000

11.5% Up to 22 May 2016

Current Account Credit Facility with acredit amount of Rp10,000,000,000

12% Up to 22 May 2016

Letter of Credit Facility and/or SuratKredit Berdokumen Dalam Negeriinterchangeable to Bank GuaranteeFacility with a borrowing limit ofUS$4,500,000

UPAS rate: subject tofinancing Bank Rate + 2%

Up to 22 May 2016

Bank Guarantee Facilityinterchangeable to a letter of creditwith a limit of US$4,500,000.

— Up to 22 May 2016

Investment Credit Facility 5 with acredit amount of Rp75,000,000,000

12% Up to 6 March 2020

Investment Credit Facility 4 with acredit amount of Rp45,000,000,000

11.5% 27 August 2012 - 27 July2016

Forex Line (New/Revolving) withPre-Settlement limit US$200,000

— Up to 22 May 2016

Our Company is required to pay: (i) a provision fee of 0.25% per annum and an administration fee of

Rp30,000,000 for the Fixed Credit Facility; (ii) a provision fee of 0.25% per annum and an

administration fee of Rp5,000,000 for the Current Account Credit Facility; (iii) an opening fee of

0.125% per quarter or a minimum fee of US$50 for a letter of credit, an acceptance fee and an

amendment fee, each of 0.25% or a minimum of US$50, and an opening fee for Surat Kredit

Berdokumen Dalam Negeri of 0.0625% or a minimum of US$50; (iv) an opening fee and an

amendment fee of 0.25% or a minimum fee of US$50 for the Bank Guarantee Facility; (v) a provision

fee of 0.5% and an administration fee of Rp25,000,000 for Investment Credit Facility 5; and (vi) a

provision fee of 0.25% for Investment Credit Facility 4.

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These credit facilities are secured by: (i) land and buildings owned by our Company; (ii) security over

our machineries; (iii) security over our inventories; (iv) security over our trade receivables; (v)

personal guarantee from Mr. Harry Sanusi; and (vi) cash collateral of 10% of credit available under

the letter of credit or the bank guarantee.

The financing agreements contain restrictive covenants which include, among other things,

restrictions on our Company conducting the following activities without prior written consent fromCIMB Niaga: (i) selling or otherwise transferring or leasing all or part of our assets; (ii) pledgingassets except for guarantees to CIMB Niaga; (iii) providing loans or receiving loans from otherparties, except for daily business activities; (iv) changing our business nature and activities; (v)changing the composition of the board (our Company is permitted to change the composition of theboard before the initial public offering); (vi) paying dividend to shareholders; and (vii) changingcorporate structure, such as merger, consolidation, acquisition and spin-off.

In relation to the initial public offering process, we have obtained a waiver from CIMB Niaga for (i),(ii), (iv), (v), (vi) and (vii) above. Our Company is not required to obtain prior written consent fromCIMB Niaga to announce and distribute share dividends after the initial public offering as long as thefinancial covenants are in compliance.

In addition to the above, our Company is also required to submit a written notification to CIMB Niagaon any amendment to our Articles of Association, a change of shareholders and shareholdingcomposition, paid-up capital, our Board of Directors’ and Board of Commissioners’ composition, andthe nature and scope of the business of our Company.

Under the financing agreements, we are also required to maintain the following financial ratios: (a)maximum debt to equity ratio of 2.5 times; (b) a sum of cash, account receivables and inventories atleast equal to the sum of short-term bank loans and account payables; (c) a minimum current ratio of1:1; (d) a maximum bank loans to EBITDA ratio of 3:1; and (e) a minimum DSCR of 1.5 times.

Index Loan Agreements

Our Company has entered into the following financing agreements with Index:

Facility Interest Rate Per Annum Term of Loan

Current account credit facility withmaximum credit amount toRp35,000,000,000 and term loancredit facility with a maximumcredit amount of Rp15,000,000,000

13% for the current accountfacility and 13% for theterm loan facility

Up to 1 July 2016 for thecurrent account, which maybe extended for a periodagreed by Index and theCompany upon writtenrequest from the Company.

For the term loan facility,60 months after the end ofthe grace period (2 January2020).

Our Company has to pay a provision fee of 0.5% per annum and an administration fee of 0.4‰ forthe current account, and a provision fee of 0.75% per drawing and an administration fee of 0.40‰ forthe term loan, which is payable on the execution of this loan agreement.

This facility is secured by: (i) land and buildings owned by our Company; and (ii) security over ourinventories.

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The loan agreement contains restrictive covenants which include, among other things, restrictions onour Company conducting the following activities without prior written consent from Index: (i)entering into any security agreement, or any other loan agreement or other agreement withrequirements contrary to this agreement; (ii) renting, selling, transferring or otherwise releasing thesecurity to other parties; and (iii) applying for bankruptcy.

BSMI Loan Agreement

Our Company entered into the following financing facilities with BSMI on 5 November 2015:

Facility Interest Rate Per Annum Term of Loan

Loan Note-1 in an amount ofRp150,000,000,000 or equal valuedenominated in US$

— Withdrawal in Rupiah:1.50% per annum pluscost of funds(1); or

— Withdrawal in US$:2.65% per annum pluscost of funds(1)

Up to 30 November 2016

Loan Note-2 in an amount ofRp100,000,000,000

1.50% per annum plus costof funds(1)

Up to 30 November 2016

Commercial Letter of Credit in anamount of Rp50,000,000,000 orequal value denominated in US$ orEuro

Issuance fee of 0.125% perannum, subject to aminimum fee of US$100 (orits equivalent in Rupiah)

Up to 30 November 2016

Acceptance Facility in an amount ofRp50,000,000,000 or equal valuedenominated in US$ or Euro

Commission fee of 1% perannum

Up to 30 November 2016

Loan on Note Trust Receipt in anamount of Rp50,000,000,000

— Withdrawal in Rupiah:1.50% per annum pluscost of funds(1); or

— Withdrawal in US$:2.65% per annum pluscost of funds(1)

Up to 30 November 2016

Note:(1) “Cost of funds” means the rate of interest per annum at which BSMI pays for Rupiah and US$ deposit in amount

comparable to the amount of loan and for a period corresponding to the applicable interest period. It will be conclusivelydetermined by BSMI from time to time and advised by BSMI to our Company.

The aggregate maximum amount our Company can draw down from the above financing facilities withBSMI is Rp150 billion (the “Aggregate Limit”). In addition to the interest and fee amounts referredto above, the Company is required to pay a fee of 0.25% per annum of the Aggregate Limit. We havenot drawn down any amounts from the above financing facilities as at the date of this OfferingCircular.

These facilities are secured by: (i) a personal guarantee from Mr. Harry Sanusi; (ii) security over ourexisting and future receivables; and (iii) security over our existing and future inventories. Thecombined secured amount under (ii) and (iii) shall be at least equivalent to Rp187,500 million or 125%of the outstanding Aggregate Limit. The related security documents are in the process of beingfinalised.

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The financing facilities contain covenants which include, among other things, restrictions on ourCompany to (without prior written consent from BSMI): (i) enter into any transaction with any partyother than on an arm’s length basis; (ii) lease, assign, transfer or otherwise dispose of any or all ofour assets in a manner which could reasonably be expected to have a material adverse effect on ourCompany’s ability to perform our obligations under the financing facilities; (iii) materially change thenature of our business; (iv) incur or suffer to exist any additional indebtedness for money borrowedor credit extended (including contingent indebtedness by guarantee or otherwise), make any loan toany person or entity other than our affiliates or give a guarantee to or for the benefit of any persons,other than in the ordinary course of business; and (v) create, incur, assume or suffer to exist anysecurity right on our immovables, or encumber our material assets or sell, lease or otherwise disposeof our material assets other than on an arm’s length basis for full consideration in the ordinary courseof business, except for (a) any guarantees that have been disclosed in writing to BSMI before the dateof the loan agreement, and (b) any other security created or outstanding with the prior written consentof BSMI.

Under the financing facilities, our Company is also required to maintain the following financial ratios:(a) an EBITDA to interest expense ratio of not less than 1.25:1; (b) a maximum debt to equity ratioof 2.5:1; (c) a minimum debt service coverage ratio of 1.5:1; and (d) a sum of account receivables andinventories at least equal to the sum of short-term borrowings and account payables to be assessed byBSMI on a quarterly basis and calculated on the basis of the Company’s interim financial statementssubmitted to BSMI.

DLS Loan Agreement with DBS

DLS entered into a loan agreement with DBS on 25 September 2012, which was last amended on 5October 2015. The credit facility granted under, the interest rate of and the term of the loan are asfollows:

Facility Interest Rate Per Annum Term of Loan

Uncommitted account payablesfinancing facility with maximumcredit amount of Rp250,000,000,000

11.5% (floating) Up to 15 August 2016, andDBS has the right toautomatically extend for anadditional three months.

DLS has to pay DBS a facility fee of 0.22% per annum from the total facility amount granted no laterthan three working days from the date of execution.

This facility is secured by: (i) pledge over deposits of DLS and/or Mr. Harry Sanusi with DBS witha value of at least 15% of the loan facility; (ii) security over trade receivables owned by DLS; (iii)security over inventories owned by DLS; and (iv) personal guarantees by Mr. Harry Sanusi.

The loan agreement contains restrictive covenants which include, among other things, restrictions onDLS conducting the following activities without prior written consent from DBS: (i) changing the typeof business activity; (ii) accepting a debt, new loan or additional facility from another bank or anythird party; (iii) applying for bankruptcy or applying for a payment postponement; (iv) participatingas a guarantor for any third party; (v) entering into material agreements which generate profits for amember of the board of directors or board of commissioners or shareholders of DLS; and (vi) effectingor approving a capital expenditure.

Under the loan agreement, DLS is also required to maintain the following financial covenants: (a) debtservice ratio of a minimum 1.25 times on a quarterly basis; (b) gearing ratio of a maximum 5.0 timeson a quarterly basis; (c) change in net worth of a maximum 25% from year to year; and (iv) transferto DBS of a monthly payment amounting to Rp50,000,000,000 (or any other amount determined byDBS based on annual review).

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DLS Loan Agreement with Danamon

DLS has obtained the following credit facilities from Danamon:

Facility

Effective Interest Rate Per

Annum Term of Loan

Uncommitted revolving open accountfinancing facility with maximumcredit amount to Rp83,500,000,000

11.75% (floating) Up to 22 July 2016

Uncommitted revolving overdraftfacility with maximum credit amountto Rp15,000,000,000

11.75% (floating) Up to 22 July 2016

The loan facilities are secured by: (i) land and buildings owned by DLS; (ii) security over inventoriesowned by DLS; (iii) security over trade receivables owned by DLS; (iv) personal guaranties by Mr.Harry Sanusi; (v) land owned by Mr. Harry Sanusi; and (vi) bank deposits owned by DLS. Security(v) is in the process to be replaced by land owned by our Company.

The loan agreements contain restrictive covenants. Without prior written consent from Danamon, DLSis prohibited from conducting the following activities: (i) selling, transferring or handing over use ofthe assets owned by DLS except for the purposes of running DLS’s business; (ii) pledging assetsowned by DLS; (iii) entering into agreements which could result in a payment liability to a third party,except for the purposes of running DLS’s business; (iv) providing a direct/indirect corporate guaranteefor a third party, except for endorsement or securities for the purposes of payment or billing to carryout the business activity of DLS; (v) providing/accepting loans from other parties, except for thepurposes of running DLS’s business; (vi) changing DLS’s business nature and operations; (vii) payingshareholders loan; (viii) changing the management and shareholders of DLS, including participatingin a merger or acquisition, except if the major shareholder continues to be Mr. Harry Sanusi’s familyand the surviving company is DLS; (ix) distributing dividends; and (x) obtaining loans from otherbanks.

In relation to the initial public offering process, we have obtained a waiver from Danamon for (ix)above.

Joint Venture Agreement

On 10 May 2013, Mr. Harry Sanusi and Mr. Harris Sanusi, on one hand, and Morinaga & Co., Ltd.,on the other hand, entered into a joint venture agreement. Pursuant to the agreement, the parties agreedto set up a joint venture company, PT MKI, to manufacture and sell food products in Indonesia. Underthe terms of the agreement, PT MKI may use Morinaga & Co., Ltd.’s “Hi-Chew” trademark and anyof Morinaga & Co., Ltd.’s current or future brands or trademarks. PT MKI may also use andmanufacture, sell, advertise or promote Morinaga & Co., Ltd.’s “Hi-Chew” brand products and “Bake”brand products, as well as any of Morinaga & Co., Ltd.’s current or future products. Under the termsof the joint venture agreement, Mr. Harry Sanusi and Mr. Harris Sanusi will have an aggregate 49%shareholding of PT MKI, while Morinaga & Co., Ltd. will have a 51% shareholding. PT MKI’s boardof directors shall comprise of at least three directors, of which more than half of the directors shallbe nominated by Morinaga & Co. Ltd., with the remaining directors to be nominated by Mr. HarrySanusi and Mr. Harris Sanusi. Under the joint venture agreement, we and Morinaga & Co. Ltd. arebound by non-competition covenants which prohibit us or Morinaga & Co. Ltd., independently or incollaboration with a third party other than PT MKI, from manufacturing or selling any food productsbelonging in any of the categories of products which either we or Morinaga & Co. Ltd manufactureor sell in Indonesia, during the period in which the joint venture agreement is effective. The jointventure agreement is valid until terminated by written agreement of both parties or as per the

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termination provisions of the joint venture agreement in the case of, among other things, breach of thejoint venture agreement by one party. PT MKI is owned by our Company, Mr. Harris Sanusi andMorinaga & Co., Ltd as to 29.4%, 19.6% and 51% respectively. See “History, Corporate Restructuringand Group Structure — History and Background — PT MKI”.

Licensing Agreements

Wen Ken Drug Co (Pte) Ltd

On 28 April 2011, our Company signed a licensing agreement with Wen Ken Drug Co (Pte) Ltd.Pursuant to the agreement, our Company has the exclusive licensed rights to use the brand “Cap KakiTiga” in Indonesia for a period of 15 years, which can be extended for additional 15 years based ona mutual agreement made in writing no later than one year before the expiration of the licensing.

Tampico Beverage Inc. (USA)

On 29 February 2012, our Company signed a license agreement with Tampico Beverage Inc. (USA).Pursuant to the agreement, our Company has the exclusive licensed rights to manufacture anddistribute Tampico products in Indonesia. The agreement is effective until 30 April 2017.

Supply Agreements

Gas Sales and Purchase Agreement

Our Company and PT Perusahaan Gas Negara (Persero) entered into a gas sales and purchaseagreement on 3 May 2013. Pursuant to the agreement, we agreed to use the gas supplied by PTPerusahaan Gas Negara (Persero) as fuel for producing our products. The volume contracted is 83,340up to 100,000 m3 per month. In order to guarantee payments to PT Perusahaan Gas Negara (Persero),our Company provides a guarantee in the form of restricted time deposits in PT Bank Central Asia Tbkand PT Bank CIMB Niaga Tbk. This agreement is valid until 31 March 2018.

Supply Agreement with PT Sugar Labinta

On 31 March 2015, our Company and PT Sugar Labinta entered into a Sales Contract for the purchaseof sugar. The agreement is for the period from April until December 2015.

Bottle Packaging Agreement with PT Hasil Raya Industri

On 16 May 2014, our Company and PT Hasil Raya Industri entered into a bottle packagingdevelopment cooperation agreement. Pursuant to the agreement, PT Hasil Raya Industri will supply250 ml plastic bottles to us, and provide a bottle moulding machine for use in one of our plants. Thisagreement is valid until 16 May 2019.

Cooperation Agreement with PT Merpati Mahardika

Our Company entered into a cooperation agreement with PT Merpati Mahardika on 1 April 2015. OurCompany has agreed to purchase certain flavouring and other raw materials from PT MerpatiMahardika. This agreement is valid from 1 April 2015 until 31 March 2016.

Perfume Product Supplies and Rebate Scheme Agreement with PT Mane Indonesia

Our Company entered into a long-term supply contract with PT Mane Indonesia on 23 July 2014. OurCompany agreed that PT Mane Indonesia will be the main supplier of fragrance products to ourCompany and will purchase fragrance for its personal care products from PT Mane Indonesia only.Subject to certain conditions, PT Mane Indonesia will provide rebates to our Company based on thetotal turnover invoiced by PT Mane Indonesia to our Company.

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Manufacturing Agreements

Manufacturing Agreement with PT Sariguna Primatirta

On 1 April 2015, our Company and PT Sariguna Primatirta entered into an agreement for PT Sariguna

Primatirta to produce certain beverages and beverages packaging materials. This agreement is valid

until 1 April 2016 and may be extended with the prior consent of the parties at least three months

before the expiration of the agreement.

DLS Sub-distribution Agreements

As at 30 June 2015, DLS had entered into 189 distribution agreements with 124 local distributors

(totalling 211 distribution centres) in Indonesia, to support its role as the sole distributor of our

Company and PT MKI. The sub-distribution agreements between DLS and the local distributors are

categorised by the products being distributed, i.e. food products, beverages and personal care

products. Most of the sub-distribution agreements have a term of one year and do not contain any

renewal clause. DLS also accepts direct periodic purchase orders from several local distributors.

All the sub-distribution agreements are exclusively for distribution in Indonesia. DLS has adopted a

standard form of sub-distribution agreement which contains certain customary provisions including,

among other things, restrictions on local distributors from engaging the following activities without

obtaining prior written consent from DLS: (i) engaging another party to assist with the distribution of

the products; (ii) selling, distributing and/or promoting competing products; and (iii) directly

promoting the products. The pricing of the products and discount policy are determined by a purchase

price list provided by DLS. The local distributor must fulfil certain sales targets. DLS is responsible

for any defective products, and the return of such defective products must be in accordance with the

DLS return of goods policy.

The sub-distribution agreement may be terminated by either of the parties with three months’ written

notice. Further, DLS has the right to terminate the sub-distribution agreement at any time if a local

distributor has breached the agreement or if a local distributor is deceased (if the local distributor is

a natural person) or liquidated or suspended.

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REGULATIONS

The regulatory overview provided below is limited to the core business of our Company and itssubsidiaries, which includes the business activities of manufacturing and distributing goods consistingof food, beverage, personal care, and household health products. Aside from the specific regulationson the core business of the Company and its subsidiaries, there also are various laws and regulationsin the industry and trade sectors applicable to the core business of our Company and its subsidiaries.

General Overview

In general, manufacturing activities in Indonesia are subject to the regulations issued by the Ministryof Industry (“MOI”) and trade distribution activities are subject to regulations issued by the Ministryof Trade (“MOT”) and the Ministry of Finance (“MOF”). Food, beverage and personal care productsare subject to the regulations and policies issued by the Ministry of Health (“MOH”) and the FoodDrug Supervisory Agency (“FDSA”).

Key Licences for a Manufacturing Company

Industrial activities in Indonesia, which include manufacturing activities, are regulated by Law No. 3of 2014 dated 15 January 2014 on Industries (the “Industry Law”). Pursuant to the Industry Law, priorto commencement of industrial activities, an industrial company must obtain an Industrial BusinessLicence (Izin Usaha Industri or “IUI”) issued by MOI as further regulated under GovernmentRegulation No 13 of 1995 on Industrial Business Licenses. IUI is the primary licence that an industrialcompany must hold in order to conduct its industrial business operation. The Industry Law alsostipulates that an industrial company which runs an industry activity shall be located in industrialestates, except industrial companies located in regencies or municipalities that do not have anindustrial estate or have an industrial estate but do not have any more space. The exception is alsoavailable for small and medium industries or specific industries that use special raw materials and/orwhose production process requires a specific location. Based on the Industry Law, there are three typesof IUI, categorised according to the scale of the business, taking into consideration manpower andinvestment value. The threshold and procedure for each Industrial Business Licence category will befurther regulated by a government regulation, which has yet to be issued.

Non-compliance with the Industry Law may result in the imposition of various administrativesanctions on the relevant industrial company in the form of, among other things, a warning letter, anadministrative fine, temporary business suspension, and/or suspension and revocation of the industrialcompany’s IUI.

Cosmetics Manufacturing

In addition to the IUI, MOH Regulation No. 1175/MENKES/PER/VIII/2010 dated 20 August 2010 onCosmetic Manufacture Permits, and its amendment in MOH Regulation No. 63 of 2013 dated 25October 2013, further stipulate that each Cosmetic Manufacturer should also obtain a ProductionLicence (Izin Produksi) issued by the General Director of the MOH upon recommendation of the Headof Local FDSA. This production licence is valid for five years and may be extended. Any change ofcategory, board management, or location (as described in the Production License), requires thecompany to submit an application to approve the change to the production license.

Non-compliance with the above requirements may result in the imposition of various administrativesanctions, including, among others, a warning letter, a temporary restriction on product distribution,an order of product destruction, temporary business suspension, and/or suspension or revocation of themanufacturer’s production licence.

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Household Medical Supplies Manufacturing

Pursuant to MOH Regulation No. 1189/MENKES/PER/VIII/2010 dated 23 August 2010 on theManufacture of Health Equipment and Household Medical Supplies (“MOH Reg 1189/2010”),companies which produce Household Medical Supplies (Perbekalan Kesehatan Rumah Tangga or“PKRT”) must obtain a manufacturing certificate issued by the Directorate General of the MOH uponimplementation of the Good Health Equipment and/or Household Medical Supplies ManufacturingPractice (Cara Pembuatan Alat Kesehatan dan/atau Perbekalan Kesehatan Rumah Tangga yang Baik).Any company that conducts manufacturing, repacking, assembling, or reconditioning/remanufacturingof products must report such action at least once each year to the Director General of MOH.

Non-compliance with the above requirements may result in the imposition of various administrativesanctions ranging from a warning letter to revocation of the company’s production licence.

Traditional Medicine Manufacturing

The traditional medicine industry is regulated by MOH Regulation No. 006 of 2012 dated 13 February2013 on Traditional Medicine Industry and Business (“Traditional Medicine Industry Regulation”).The Traditional Medicine Industry Regulation stipulates that traditional medicine can only bemanufactured by traditional medicine industry or businesses. The traditional medicine industry isdivided into two categories: (i) industry of traditional medicine (industri obat tradisional); and (ii)industry of natural ingredient extracts (industri ekstrak bahan alam). A traditional medicine industrylicence issued by MOH must be obtained to enable a company to engage in the traditional medicineindustry and it will remain valid as long as the relevant business is conducted in accordance withapplicable laws. Further, the holder of the licence must submit a report every six months to theDirector General of MOH.

Non-compliance with the provisions stipulated under the Traditional Medicine Regulation may resultin the imposition of various administrative sanctions, including, among others, a warning, an order torecall the product from the market, temporary suspension of manufacturing activity, and revocation ofthe industry licence.

Pharmaceutical Regulation

Pharmaceutical regulation falls under Law No 36 of 2009 on Health (“Health Law”) and theimplementing regulation for the pharmaceutical industry is administered under GovernmentRegulation No 51 of 2009 on Pharmacy Work. Pharmacy work consists of pharmaceutical: (i)procurement; (ii) production; (iii) distribution; and (iv) service activities. Further, the Health Law andMOH Regulation No. 889/MENKES/PER/V/2011 on Registration, Practice Permit, and PharmacyLicense Work stipulate that pharmacy staff must have a registration mark as either: (i) a pharmacist(Surat Tanda Registrasi Apoteker); or (ii) a pharmacy technical staff (Surat Tanda Registrasi TenagaTeknis Kefarmasian). Such registration is valid for five years and is extendable. Besides theregistration requirement, each member of the pharmacy staff must obtain a license falls under topractice as a pharmacist (Surat Izin Praktik Apoteker), a work license as a pharmacist (Surat Izin KerjaApoteker), or a work license as a technical staff (Surat Izin Kerja Tenaga TeknisKefarmasian/SIKTTK). In addition to the work license requirement for the pharmacy staff, a PharmacyIndustry License (Izin Industri Farmasi) must be obtained by every company, which has activities inthe pharmacy industry as set out under MOH Regulation No 1799/MENKES/PER/XII/2010, asamended by MOH No 16 of 2013 regarding Pharmacy Industry (“Pharmacy Industry Regulation”).

Non-compliance with the provisions of the Pharmacy Industry Regulation may result in the impositionof various administrative sanctions, including a warning letter, a temporary restriction on productdistribution, an order of product destruction, temporary business suspension, and/or suspension orrevocation of the Pharmacy Industry License.

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Food Regulation

Law No. 18 of 2012 dated 17 November 2012 on Food (the “Food Law”) contains general provisionsgoverning the food industry, food production, food safety and food security in Indonesia.

Food Registration

MOH Regulation No. 382/MENKES/PER/VI/1989 dated 2 June 1989 on Food Registration stipulatesthat producers and importers must register processed or imported foodstuffs. On 1 February 2010, theGovernment issued MOI Regulation No. 122/M-IND/PER/12/2014 dated 15 December 2014 onDelegation of Authority to Grant Industrial Business-Related Licences to the Head of the CapitalInvestment Coordinating Board, which, among other things, delegates the authority of the MOI to theHead of the Capital Investment Coordinating Board with regard to the granting of industrial businesslicences, expansion licences, industrial area business licences and the expansion of industrial areas forindustries located in provinces. Further, Head of FDSA Regulation No. HK 00/05.1.2569 of 2004 onthe criteria and procedures for food product evaluation states that in order to obtain registration, afood product must satisfy safety, quality assurance, and nutritional standards as well as labellinginformation requirements. In addition, Head of FDSA Regulation No. HK.03.1.5.12.11.09955 of 2011dated 5 December 2011 on Processed Food Registration, as amended by Head of FSDA Regulation No.42 of 2013 dated 28 June 2013, requires that any processed food product distributed in Indonesia,whether manufactured in or imported into Indonesia, must be in receipt of a food registration approvalletter, with the food registration number on the labels of each product, in order to ensure that such foodproduct has satisfied a minimum quality standard for food in Indonesia. The registration approvalletter is valid for five years and extendable through re-registration. Moreover, Head of FDSARegulation No. 1 of 2013 on the application for processed food registration stipulates that theprocessed food registration documents and any changes to the information on the particular processedfood product can be submitted electronically.

Failure to comply with these various food registration requirements may subject the company toadministrative sanctions, including, among others, a warning letter, suspension of productdistribution, suspension of the food registration process, suspension of business activities, andrevocation of the food registration number. Warnings may be served and temporary suspensions on thedistribution of the relevant products may be enforced in the event of expired FDSA approvals.

Cosmetic Notification

Pursuant to the Cosmetics Notification Regulations and MOH Regulation No.1176/MENKES/PER/VIII/2010 dated 20 August 2010 on Cosmetic Notification, any cosmetic productmay only be distributed upon obtaining a Distribution Licence (Izin Edar) in the form of a notificationprior to its distribution within Indonesia. The notification has a validity period of three years and willbe void if: (i) the Production License, Industrial Business License, or Importer’s IdentificationNumber (Angka Pengenal Importir/API) becomes invalid; (ii) based on evaluation, the distributedcosmetic has not fulfilled necessary technical requirements; (iii) requested by the applicant; (iv) thecooperation agreement between the applicant and the licensor company and/or the appointment of anagent by the principal has ended; (v) the distributed cosmetic is not in accordance with the notificationrequest; or (vi) the applicant of notification does not produce, import, or distribute the cosmeticproduct.

Household Medical Supplies Registration

Pursuant to MOH Regulation No. 1190/MENKES/PER/VIII/2010 dated 23 August 2010 onDistribution Licence of Health Equipment and Household Medical Supplies, any health equipment andhousehold medical supplies product may only be distributed after obtaining a Distribution Licence

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(Izin Edar) issued by the Directorate General of MOH. The Distribution License is valid for five years

or in accordance with the period of the agency appointment and it can be renewed. The Distribution

License can be revoked by the Director General of MOH if the product is harmful. In addition, any

holder of a Distribution License must submit an annual monitoring report.

Traditional Medicine Registration

Pursuant to MOH Regulation No. 007 of 2012 dated 13 February 2013 on Traditional Medicine

Registration, traditional medicine that is distributed within the territory of Indonesia must obtain a

distribution licence (Izin Edar) issued by the Head of FDSA. The distribution licence is valid for five

years. Any violation of the provisions may result in the revocation of the distribution licence of therelevant traditional medicine distributor. Other administrative sanctions can be in the form ofdistribution restrictions and/or an order for product destruction.

Food Safety

The Food Law sets out general provisions on food safety regarding sanitation, food additives, geneticengineering, irradiation, packaging, quality assurances, laboratory examination, contamination, andhalal assurance. Government Regulation No. 28 of 2004 on Food Safety, Quality and Nutritionrequires every operator in the food industry to observe sanitation requirements during food cultivationand production, processing, distribution and retailing, as well as in the production of fast foods. Everymanufacturer is also prohibited from using any material for food packaging which can harm humanhealth. Further, there is a requirement to meet Indonesian food quality standards before any food canbe distributed. MOH Regulation No. 239/Men.Kes/Per/V/85 dated 1 May 1985 on Hazardous FoodColorants and Head of FDSA Directive No. 00386/C/SK/II of 1990 stipulate a number of prohibitedfood colorants, such as Orange K1, Red K3, RedK4, Red K10, and Red K11, save where thepermission for their use is granted by the Director General of FDSA.

Furthermore, according to MOH Regulation No. 33 of 2012 on food additives, a number of additives,such as sweetener, preservative, flavour enhancer, and colour, may only be used provided they do notexceed specific maximum limits. Nonetheless, several additives such as boric acid, salicylic acid,diethyl pyrocarbonate, dulcin, potassium chlorate, chloramphenicol, brominated vegetable oil,nitrofurazone, formaldehyde, and potassium bromate are banned from use as food additives. Head ofFDSA may stipulate other banned additives after obtaining MOH Approval.

Head of FDSA Regulation No. 4 of 2014 on Maximum Threshold on The Use of Additional FoodSweetener regulates the types allowed and maximum thresholds applicable to the use of additionalfood sweeteners.

Head of FDSA Regulation No. 36 of 2013 on the Maximum Limit of Preservatives Used as FoodAdditives permits the use of sorbic acid, benzoic acid, ethyl para-hydroxybenzoate, methylpara-hydroxybenzoate, sulphites, nisin, nitrites, propionic acid, and lysozyme hydrochloride aspreservative additives. The use of other types of preservatives must be first approved by the Head ofFDSA.

Head of FDSA Regulation No. 37 of 2013 on the Maximum Limit of Colours Used as Food Additivespermits the use of natural colour such as curcumin, riboflavins, carmines and cochineal extract,chlorophyll, caramel, vegetable carbon, carotenes, annatto extracts, carotenoids, beet red,anthocyanins, and titanium dioxide, as well as synthetic colours, i.e. tartrazine, quinonline yellow,sunset yellow FCF, carmoisinel, cochineal red A, erythrosine, altura red AC, indigo carmine, brilliantblue FCF, fast green FCF, and brown HT. The use of other types of colour must be first approved bythe Head of FDSA.

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Head of FDSA Regulation No. 23 of 2013 on the Maximum Limit of Flavour Enhancers Used as FoodAdditives permits the use of L-glutamic acid, guanylic acid, inosinic acid, and salts of5-ribonucletides. The use of other types of flavour enhancers must be first approved by the Head ofFDSA. Further, there is also regulation which stipulates the maximum limit of microbial and chemicalcontamination contained in food products.

Non-compliance with the above regulations subjects the distribution to administrative sanctions in theform of: (i) written warning; (ii) temporary prohibition on product distribution and/or withdrawal fromdistribution activities; (iii) order for product destruction; and (iv) revocation of distribution licenses.Administrative sanctions can be imposed on food manufacturers if there is food poisoning caused bythe consumption of the contaminated foods. This provision is further regulated under MOH RegulationNo. 2 of 2013 on Extraordinary Events of Food Poisoning.

Labelling and Advertising

The Food Law and Government Regulation No. 69 of 1999 on Food Labelling and Advertising makesit obligatory for food producers and importers to provide information labels inside or outside foodpackaging. The information set out on the label must at a minimum consist of the following: the nameof the product; ingredients; net weight; net contents; the name and address of the producer; expirationdate; registration number; production code; nutrient content; information concerning irradiation orgenetic engineering, raw materials and additives; and other information in the case of certainprocessed foodstuffs for infants, children aged five and under, expectant and lactating mothers, peoplewith particular health conditions, the elderly, and people restricted to special diets. Food productlabels must also comply with Head of FDSA Regulation No. HK. 03.1.23.11.11.09909 of 2011 on theControl of Claim on Processed Food Labelling and Advertisements, which stipulates that anyprocessed food which states, suggests, or implies certain characteristics of a food product regardingits origin, content, nature, production, processing, composition, or other quality factors must publishthis information, including but not limited to a warning regarding the maximum consumption. Headof FDSA Regulation No. HK 00.06.51.0475 of 2005, as amended by FDSA Regulation No. HK.03.1.23.11.11.09605 of 2011, requires the inclusion of nutritional value information on the foodproduct labels. Every food product label must also provide information on: the servings; the numberof servings per package; and an explanation that the nutrition percentages indicated by the nutritionalvalue information are calculated based on energy needs of 2000 kcal. Other nutritional informationthat must be stated on a food product label includes the total energy, fat, protein, carbohydrate, andsodium contents. Information about the nutritional value also must be included on the labels ofpackages of infant formula. The presentation of food product nutritional information must adhere toFDSA Directive No. HK 00.05.52.6291 of 2007 on Guidelines for the Nutritional Information on FoodProduct Labels. Head of FDSA Regulation No. HK 00.06.1.52.6635 of 2007 prohibits on food labelsand advertisements any statement that the product is free from additives.

To increase consumer protection and information disclosure, the Government sets out minimumrequirements for food labels which should include at least: the name of the product; ingredients; netweight or net volume; food manufacture or importer; expiry date; and in the case of processed food:food registration number and production code. Failure to comply may subject the company toadministrative sanctions in the form of, among others: a warning letter; temporary suspension ofproduction; revocation of the industry permit; and/or fines limited to a maximum amount of Rp50million.

In addition, Law No. 8 of 1999 on Consumer Protection stipulates that a food processor must affix anexpiration date to its products and makes it illegal to sell expired foods. Provisions regardinginformation on food expiration are also stipulated under Head of FDSA Regulation NoHK.03.1.23.06.10.5166 of 2010 on Inclusion of Information regarding the Origin Material, Content ofAlcohol, and Expiration Date for Labelling in Medicine, Traditional Medicine, Food Supplement, andFoods. The exact month and year of expiration must be stated clearly. Any failure to comply with thisrequirement may lead to administrative sanctions, including warning letters, product recall/destructionorders, and suspension of distribution license/registration approval.

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All food advertisements must provide clear information about the food in order to avoid misleading

consumers. An advertisement must also not discredit other food products.

Halal Designation

The Food Law also deals with halal designation as part of food labelling. MOH Decree No. 82 of 1996

on the inclusion of the word “Halal” on food labels, as amended by MOH Decree No. 924 of 1996,

stipulates that the label on a food product may designate it as halal. A producer that submits an

application for halal designation will be assessed by the Indonesian Council of Ulama, Majelis Ulama

Indonesia (“MUI”) and Directorate General of FDSA. The obligation to secure halal designation only

arises if the producer represents that the food product in question is permitted to be consumed by

Muslims.

Additionally, on 17 October 2014 the Government issued Law No. 33 of 2014 on Halal Product

Warranty (“Halal Law”) that requires all products which enter, are distributed or traded within the

territory of Indonesia must be certified halal. This requirement will come into effect five years after

the enactment of the Halal Law. In the near future, the Halal Product Assurance Agency (Badan

Penyelenggara Jaminan Produk Halal or “BPJPH”) will be formed as an authorised body to issue the

halal certificate upon written decision from MUI.

To be granted a halal certificate, a product should pass the assessment of the materials and production

process. It must not involve forbidden (in Islamic terms defined as haram) materials under the Halal

Law, which are: (a) carcass; (b) blood; (c) pork; (d) any animal which is not slaughtered in accordance

with sharia principles; (e) material derived from herbs which cause intoxication and/or endanger

health; and (f), material derived from microbes and material resulting from a chemical process,

biological process, or genetic engineering process that have been contaminated with forbidden

material during such process. Furthermore, a company which produces products by using or containing

forbidden materials as mentioned above must provide non-halal information with their products. The

halal certificate is valid for four years and must be renewed by the holder upon expiration.

Packaging

Head of FSDA Regulation No HK.03.1.23.07.11.6664 of 2011 dated 12 July 2011 on Food Packaging

as amended by Head of FSDA Regulation No.16 of 2014 dated 27 November 2014 (“Food Packaging

Regulation”) has established requirements on food packaging by setting out prohibited materials,

permitted materials and materials that require prior safety assessment for food packaging. If a

company uses materials which are not mentioned in the Food Packaging Regulation, the company must

obtain prior approval from the FSDA. Failure to comply with the provisions under the Food Packaging

Regulation may subject the company to administrative sanctions, including, among others, a warning

letter, temporary prohibition on the distribution of the food product, withdrawal of food products from

the market and/or a destruction order of food products, suspension of food registration approval and/or

revocation of food registration approval.

Permitted and prohibited food packaging products are set out in the Food Packaging Regulation. Given

the risks associated with food packaging materials, the Government issued MOI Regulation No.

24/M-IND/PER/2/2010 dated 16 February 2010 on the inclusion of food safety logos and recycling

codes on plastic food packaging. This regulation stipulates that every food package sold in Indonesia

has to bear the food safety logo and recycling code. The recycling code contains information regarding

the type of plastic materials and recyclable packaging. The logo and code should be in Bahasa

Indonesia.

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Cosmetic Products

Cosmetic products to be distributed must satisfy quality standards and safety and usefulness

requirements in accordance with the relevant laws and regulations. The criteria that need to be

satisfied in order to distribute cosmetic products are stipulated in Head of FSDA Regulation No.

HK.03.1.23.12.10.11983 of 2010 dated 13 December 2010, as amended by Head of FDSA Regulation

No. 34 of 2013 on Criteria and Procedure of Cosmetic Notification Application. Cosmetic products

must satisfy safety criteria according to which the materials used must be in accordance with

applicable laws and regulations and must not harm human health. A cosmetic product must conform

to the intended use and claims listed on the product. Before any application for cosmetic notification

is made, the applicant must have a production license granted by the Director of MOH. The

registration of the applicant is made once and the applicant must re-register when there is any change

in the data provided by the applicant. The quality of the cosmetic product must be in accordance with

the requirements of the Good Cosmetics Manufacturing Practice (Cara Pembuatan Kosmetika yang

Baik), which is further regulated by Head of FDSA Decision No. HK.00.05.4.3870 dated 20 October

2003 on Good Cosmetic Manufacturing Practice Guidelines, and the materials used must be in

accordance with the Indonesian Cosmetics Code, and/or other acknowledged standards and the

relevant regulations. Moreover, sufficient and objective information, which is not misleading, is also

required on the label of the relevant product. Further, the cosmetic product to be distributed must fulfil

technical requirements covering the safety, expedience, quality, design, and product claim as regulated

under Head of FDSA Regulation No. HK.03.1.23.12.10.12459 of 2010, as amended by Head of FDSA

Regulation No. 44 of 2013 on Technical Cosmetic Requirement. Any failure to comply with technical

requirements will lead to administrative sanctions, including warning letters, product

recall/destruction orders, and suspension of distribution license/revocation of registration approval.

Cosmetic ingredients must comply with the quality requirements set out under Head of FDSA

Regulation No HK.03.1.23.08.11.07517 of 2011, as amended by Head of FDSA Regulation No. 2 of

2014 on Technical Requirement for Cosmetic Ingredients, which further stipulates the permitted and

restricted cosmetic ingredients. Any failure to comply with this regulation will lead to administrative

sanctions including warning letters, product recall/destruction orders, and suspension of distribution

license/revocation of registration approval.

Supervision of the production and distribution of cosmetics falls under Head of FDSA Regulation No.

HK.03.1.23.12.11.10052 of 2011 on Supervision on Cosmetic Production and Distribution.

Supervision is conducted through investigation of the plants and cosmetic products. The scope of

supervision covers: (i) cosmetic industry; (ii) cosmetic importers; (iii) business entities entering into

production contracts with licensed cosmetic industry entities; (iv) distribution of cosmetic products;

and (v) electronic cosmetic trading. The supervision of cosmetic products covers: (i) legality; (ii)

safety, expediency, and quality; (iii) design and claim; and (v) promotion and advertisement of the

cosmetic product. Any failure to comply with this regulation will lead to administrative sanctions,

including warning letters, product recall/destruction orders, and suspension of distribution

license/revocation of registration approval.

Household Medical Supplies Product

Pursuant to MOH Reg 1189/2010, all PKRT products must meet the standards and/or requirements of

product quality, safety and usefulness. MOH Regulation No. 1190/MENKES/PER/VIII/2010 dated 23

August 2010 on Distribution Licence of Health Equipment and Household Medical Supplies stipulates

that the safety and benefit of the PKRT products must be proven by using non-prohibited materials and

exceed specified thresholds. Additionally, PKRT products need to also satisfy quality criteria, which

are assessed by manufacturing practices and using materials with proper specifications.

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Traditional Medicine Product

According to MOH Reg 007/2012, all traditional medicine products must use materials that meet therequirements of safety and quality and implement the Good Traditional Medicine ManufacturingPractice (Cara Pembuatan Obat Tradisional yang Baik) in the manufacturing process. Traditionalmedicine products also need to meet the requirements of Farmakope Herbal Indonesia or any otherrecognised requirements. Furthermore, traditional medicine should be empirically and/or scientificallyefficacious. The regulations also require that sufficient and objective information is included on thelabel of the relevant product. The provisions are further regulated under Head of FDSA Regulation No.HK.03.1.23.06.11.5629 of 2011 on Technical Requirement on Good Traditional MedicineManufacturing Practice, stipulating that good traditional medicine manufacturing practice must beapplied in every aspect of the traditional medicine manufacturing. Further, upon the implementationof Good Traditional Medicine Manufacturing Practice, the traditional medicine manufacturer will begranted a certificate of good practice as set forth under Head of FDSA Regulation No 35 of 2013 onCertification of Good Traditional Medicine Manufacturing.

National Standards

The Indonesian National Standards, Standar Nasional Indonesia (“SNI”), are provided for byGovernment Regulation No. 102 of 2000 dated 10 November 2000, and are applicable withinIndonesia. While adherence to some standards is voluntary, others are mandatory, and a company thatproduces and/or markets goods and/or services that fail to satisfy the mandatory standards will leaveitself open to administrative and/or criminal sanctions. Administrative sanctions include: therevocation of product certificates, SNI rights, business licences, and/or the recall of goods from themarket.

Environmental Regulations

Environmental protection in Indonesia is governed by various laws, regulations, and decrees,including, among others:

• Law No. 32 of 2009 on Environment Protection and Management (the “EnvironmentalLaw”);

• State Minister of Environmental Affairs Regulation No. 5 of 2012 on Businesses and/orAction Plans, which must be completed with AMDAL (“Reg 5/2012”);

• Government Regulation No. 27 of 2012 on Environmental Licences (“GR 27/2012”);

• State Minister of Environmental Affairs Regulation No. 16 of 2012 on Procedures to DraftEnvironmental Documents (“Reg. 16/2012”); and

• State Minister of Environmental Affairs Regulation No. 8 of 2013 on Guidelines forAssessing and Examining Environmental Documents (“Reg 8/2013”).

Based on the Environmental Law, any party conducting any business and/or activity that may have asubstantial impact on the environment is required to obtain an Environmental Impact Assessment(Analisa Mengenai Dampak Lingkungan or “AMDAL”) document. Examples of “substantial andimportant environmental impact” include: (i) where a change in topography occurs; (ii) where theexploitation of natural resources is involved (whether renewable or non-renewable); (iii) where thereis a potential for pollution or environmental damage, as well the degradation of natural resources; (iv)where there is a potential impact on the natural environment, man-made environment or socio-culturalenvironment; (v) where resources and/or nature conservation areas are affected; (vi) where theintroduction of a new species of flora, fauna or microorganism is involved; (vii) where the production

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and use of biological and non-biological materials occurs; (viii) where the application of technology

has a potentially significant effect on the environment; and (ix) where the activities entail a high level

risk and/or affect state security. Further, the types of businesses and activities that are required to

obtain an AMDAL are stipulated under Reg. 5/2012.

An AMDAL consists of the following documents: (i) Reference Plan (Kerangka Acuan); (ii)

Environmental Impact Analysis (Analisis Dampak Lingkungan Hidup/Andal); and (iii) Environmental

Management Plan (Rencana Pengelolaan Lingkungan/RKL) - Environmental Monitoring Plan

(Rencana Pemantauan Lingkungan/RPL).

Where AMDAL is not required, a company must prepare an Environmental Management Plan and

Environmental Monitoring Plan (Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan

Lingkungan Hidup or “UKL-UPL”). If the business and/or activity do not require a UKL-UPL, the

company is required to provide a Statement Letter of Environmental Management and Monitoring

(Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup or “SPPL”).

Based on the Environmental Law, remedial and preventative measures and sanctions (such as the

obligation to rehabilitate tailings areas, the imposition of substantial criminal penalties and fines and

the cancellation of approvals) may also be imposed to remedy or prevent pollution caused by

operations. The sanctions range from one to 15 years of imprisonment applicable to the management

of the relevant company and/or fines ranging from Rp500 million to Rp15 billion. A fine may be

imposed in lieu of performance of an obligation to rehabilitate damaged areas. The Environmental

Law also requires licensing of all waste disposal. Waste disposal may only be conducted in specified

locations determined by the State Minister of Environmental Affairs.

The Environmental Law and GR 27/2012 stipulate that all business sectors that are required to obtain

an AMDAL and UKL-UPL shall obtain an Environmental Licence which is issued by the State

Minister of Environment Affairs, governor, or mayor/regent (in accordance with their respective areas

of jurisdiction). The issuance of an Environmental Licence is based on an environmental feasibility

decision (keputusan kelayakan lingkungan hidup) or a UKL-UPL recommendation.

The Environmental Law further stipulates that, as at 3 October 2011, all companies that have business

licences but do not have an AMDAL or UKL-UPL within the last two years as of the enactment of the

Environmental Law are required to either complete the environmental audit if they need an AMDAL,

or prepare an environment management document if they need a UKL/UPL. Furthermore, under the

Environmental Law, companies are required to integrate their current environmental permits (AMDAL

or UKL/UPL) into an Environmental Licence within one year of the enactment of the Environmental

Law. Under GR 27/2012, any company and/or activity that is required to obtain an AMDAL or

UKL-UPL is also required to obtain an Environmental Licence issued by the State Minister of

Environmental Affairs, governor, or mayor/regent, as applicable. Subject to the note on GR 27/2012

below, the environmental document approval (e.g. AMDAL approval or UKL-UPL recommendation)

obtained by the companies prior to the issuance of this regulation (i.e., 23 February 2012) will remain

valid and be deemed equivalent to an Environmental Licence. Additionally, an Environmental Licence

is a prerequisite to obtain the operational business licence and shall expire concurrently with such

operational business licence. As such, if the environmental license is revoked, the business license

will also be revoked. Therefore, the environmental license should be amended if there are any changes

which could have an impact on the environment. Companies that fail to comply are subject to criminal

and administrative sanctions, which may be in the form of: (i) a written warning; (ii) government

orders; (iii) suspension of the Environmental Licence; or (iv) revocation of the Environmental

Licence.

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Waste Water Disposal

Waste water disposal is further regulated by Government Regulation No. 82 of 2001 on Water QualityManagement and Water Pollution Control (“GR 82/2001”). GR 82/2001 requires responsible parties,including manufacturing companies, to submit reports regarding their disposal of waste waterdetailing their compliance with the relevant regulations. Under GR 82/2001, there are several permitsrelated to the waste water disposal, which consist of: (i) Licence to Utilise Waste Water into theGround (Izin Pemanfaatan Air Limbah pada Tanah); and (ii) Licence to Dispose the Waste Water intothe Water or Water Source (Izin Pembuangan Air Limbah ke Air atau Sumber Air), that are requiredif the company disposes the waste water into the water surface or springs. GR 82/2001 stipulates thatthe holder of License to Utilise Waste Water into the Ground and/or License to Dispose the WasteWater into the Water or Water Sources must submit periodical reports to the respectiveregent(s)/mayor(s) regarding their compliance with the requirements as stipulated by the licenses. Theresponsible party for the waste water disposal must prevent any possible water pollution. The issuanceof any approval of the waste water disposal will be based on the evaluation of AMDAL/UKL-UPLdocuments. Further, State Minister of Environmental Affairs Regulation No 1 of 2010 on WaterPollution stipulates that the License to Dispose the Waste Water into the Waters or Water Sources isvalid for five years. GR 82/2001 provides that failure to comply with the obligation as mentionedabove may subject the company to an administrative sanction in the form of a warning letter,temporary suspension of business activity, or revocation of business licence.

Underground Water Permit

Pursuant to Government Regulation No. 43 of 2008 on Underground Water (“GR 43/2008”),companies that extract underground water (for manufacturing purposes) require an Underground WaterExtraction Permit (Surat Izin Pengambilan Air Bawah Tanah— “SIPA”), which is valid for three years.As a means of supervision by the regional government, the holder of SIPA is obliged to submitperiodic reports on use of underground water to the regent/mayor at the relevant location every month.Extraction and/or utilisation of underground water without this permit may result in the suspension ofthe business activity and revocation of the business permit. Failure to comply with the obligation toobtain SIPA and/or report the use of underground water may lead to administrative sanctions in theform of, among others: written warnings; temporary suspension of business activities; and revocationof license.

Related Regulations for Trading and Distribution Activity

Trading Licences

Pursuant to MOT Regulation No. 36/M-DAG/PER/9/2007, as amended by MOT Regulation No.46/M-DAG/PER/9/2009 and MOT Regulation No. 39/M-DAG/PER 12/2011, on the Issuance of TradeBusiness Licence (“Reg 36/2007”), a trading company must obtain a Trade Business Licence (SuratIzin Usaha Perdagangan or “SIUP”) issued by the MOT. Under Reg 36/2007, the net asset value ofa company determines the type of Trade Business Licence which it has to procure as set out in the tablebelow:

Net Asset Value (excluding land and building used as business site) Type of SIUP

In excess of Rp50 million up to Rp500 million Small SIUP

In excess of Rp500 million up to Rp10,000 million Medium SIUP

In excess of Rp10,000 million Big SIUP

According to Reg 36/2007, all types of SIUP above must be re-registered every five years. Any changeto the company’s data or management requires the company to submit an application on the Changeof SIUP (SP-SIUP Perubahan). Failure to comply with the provisions set out under Reg. 36/2007 willsubject a company to sanctions ranging from written warning to revocation of SIUP.

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Import Licences

Based on Law No. 7 of 2014 on Trade (“Trade Law”), import of goods may only be conducted by an

importer that holds an importer identification issued by MOT. Every manufacturer or importer of trade

goods must register the information related to the security, safety, and environmental risks of their

goods to MOT to obtain a Registration of Goods Letter (Surat Pendaftaran Barang/SPB). Issuance of

importer identification is regulated by MOT Regulation No 54/M-DAG/PER/10/2009 on General

Provisions for Importers (“Reg. 54/2009”), as further regulated under MOT Regulation No.

27/M-DAG/PER/5/2012, as amended by MOT Regulation No. 84/M-DAG/PER/12/2012, on Importer

Identification Numbers (“Reg. 27/2012”). Based on Reg. 27/2012, an importer must obtain an

Importer Identification Number (Angka Pengenal Importir or “API”) to be able to engage in the import

trade. The API is divided into: (i) General Importer Identification Number (Angka Pengenal Importir

Umum or “API-U”); and (ii) Producer Importer Identification Number (Angka Pengenal Importir

Produsen or “API-P”). An API-U shall be granted only to companies importing certain goods for

trading purposes. Such companies shall only import certain goods as specified in the API-U granted

to each of those companies. An API-P shall be granted only to companies importing goods for their

own purposes as capital goods, raw materials, supporting materials, and/or for supporting the

production process.

The holder of API-P is not allowed to trade or transfer the imported goods to another party. Such

imported goods may be transferred in the event that they have been given customs exemptions and

have been used personally by the holder of an API-P for at least two years since the import custom

notification. Every importer is permitted to have only one API. Both API-U and API-P shall be valid

for as long as the importer conducts its business activities and are required to be re-registered once

every five years.

In addition to the API-P and API-U, pursuant to MOF Regulation No.59/PMK.04/2014 on Custom

Registration (“Reg 59/2014”), an importer of goods is also required to obtain the Custom

Identification Number (Nomor Identitas Kepabeanan or “NIK”). Based on Reg. 59/2014, an importer

must be registered in the Directorate General of Customs and Excise and obtain NIK to access the

customs clearance system and comply with the obligation to pay import duties.

Based on Reg. 54/2009, a failure to obtain API may lead to sanction(s) in the form of suspension or

revocation of appointment and/or import approval, while Reg. 59/2014 is silent on the sanctions for

any failure to obtain these licences. However, in practice, the company will not be able to conduct its

import activities without these licences, as copies of these licences are required to be shown to the

customs officials for each import.

In addition to the above import licences, companies are required to obtain additional specific import

licences for certain regulated goods. For example, Pursuant to the MOT Regulation No.

83/M-DAG/PER/12/2012, as amended by MOT Regulation No. 61/M-DAG/PER/9/2013, MOT

Regulation No.36/M-DAG/PER/7/2014 and MOT Regulation No. 73/M-DAG/PER/10/2014, on the

Import Conditions of Specific Products (“Reg 83/2012”), a company conducting the import of

particular products (i.e. foods and beverage products mentioned in the regulation) shall be classified

as a Particular Product Registered Importer (Importir Terdaftar Produk Tertentu or “IT”). Being

classified as an IT, the company will be required to submit periodic reports on all its import activities.

As stipulated by Reg. 83/2012, a failure to comply with the periodic report requirement may result in

revocation of the IT status. Further, an imported product that is not in accordance with the provisions

under this regulation may subject the company to re-export obligations on such products.

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Distributorship Regulations

Arrangements for distributorships and agencies are regulated by MOT Regulation No.

11/M-DAG/PER/3/2006 on the Guidelines and Procedures for the Issuance of Registration Certificates

for Agents/Distributors of Goods/Services (“Reg 11/2006”).

In a distribution relationship, the local distributor is not acting on behalf of the principal in

distributing the products. The distributor is acting as buyer and independent party to the principal, and

the distributor will be responsible for the product purchased by it. Generally, the principal will not pay

any commission to the distributor, but the distributor will realise a profit from the margin between the

purchase price and the sale price of the products.

Pursuant to Reg 11/2006, a distributor is a domestic trading company who acts for, and on behalf of,

itself based on a contract to purchase, store, sell and market goods and/or services that it owns. The

distributor will be responsible for all of its distribution activities, and the principal will not be liable

or responsible if the products cannot be sold.

Reg 11/2006 requires the registration of all distribution agreements involving Indonesian distributors,

whether the principal is domiciled in Indonesia or overseas. Upon registration, the MOT will issue a

Registration Letter (Surat Tanda Pendaftaran or “STP”) to the registering distributor. Failure to obtain

the STP may subject the company to administrative sanctions ranging from a written warning to

revocation of the SIUP of the company. The STP is valid for two years. In the event that the

distribution agreement between the principal and the distributor is terminated prior to this two-year

period and the principal intends to appoint a new distributor, a clean break letter from the previous

distributor must be obtained. If such clean break letter is not issued by the previous distributor, the

principal will need to wait three months before it can appoint a new distributor and, as consequence,

the respective STP will be declared invalid.

In addition, a distributor company must submit a report every six months to the Director of Business

Development and Company Registration under the MOT. Failure to comply with the reporting

obligation may subject the company to administrative sanctions ranging from a written warning to

suspension or revocation of the STP.

Warehouse

As stipulated under the Trade Law and the MOT Regulation No. 90/M-DAG/PER/12/2014 on

Warehouse Arrangement (“Reg 90/2014”), every warehouse owner is required to register its

warehouse with the MOT and obtain a Warehouse Registration Certificate (Tanda Daftar Gudang or

“TDG”) in accordance with the area and capacity of the warehouse. The TDG will remain valid as long

as such warehouse is used and the warehouse must be re-registered every five years. The requirement

of having a TDG is exempted if the warehouse is located in a bonded warehouse and is attached to

a retail facility and used as temporary storage for retail goods. Pursuant to the Trading Law, failure

to register a warehouse may subject the company to fines up to the maximum amount of Rp2 billion

and/or closing of the warehouse for a certain period.

In addition, subject to the Reg 90/2014, anyone who owns, manages or rents a warehouse is also

required to have a warehouse administrative record which must at least contain information regarding

the amount of stored goods and the amount of goods that come in and out of the warehouse. Failure

to maintain this record may subject the company to revocation of the trade licences of the company

(i.e. SIUP, API-U and/or API-P).

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Health and Safety Permit

Companies engaged in manufacturing activities are required to ensure the safety of their employees

in their workplace. Steam boiler and steam vessel permits, cargo lift permits, forklift permits, lighting

arrester installations, electrical installations, diesel motor permits and fire extinguisher licences are

examples of technical licences required by manufacturing companies in each plant to ensure the safety

of employees. As regulated under Law No. 1 of 1970 on Work Safety, failure to obtain such licences

and comply with regular examination and reporting obligations may subject the Board of Directors of

the company to a maximum term of imprisonment of up to three months or fines up to the maximum

amount of Rp100 thousand. In practice, the maximum sanction is not commonly implemented.

However, officials of the Regional Manpower Office may at any time examine the relevant business

unit to check compliance and temporarily suspend utilisation of the machinery which has not satisfied

periodic report or examination requirements. Further, Law No. 13 of 2003 on Employment (“Law

13/2003”) stipulates that an employer must provide protection covering health and safety at work for

its employees. Law 13/2003 also stipulates that every company must apply a management system for

health and safety at work as further regulated under Government Regulation No. 50 of 2012 on The

Implementation of Management System for Health and Safety at Work. Failure to implement the

management system for health and safety at work may result in administrative sanctions as set out

under Law 13/2013, in any form of warning up to revocation of license.

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MANAGEMENT

In accordance with Indonesian law, the management and day-to-day operations of our Company are

carried out by our Board of Directors under the supervision of our Board of Commissioners, the

members of which are appointed through a general meeting of shareholders. The two boards are

separate and no individual may serve as a member of both boards.

The rights, obligations and requirements of each member of the Board of Commissioners and Board

of Directors are regulated by our Articles of Association and the decisions of our shareholders in a

general meeting, and by Indonesian Company Law, as well as the OJK Regulations and the IDX

Regulations upon listing on the IDX. The Board of Commissioners is currently composed of three

members. The Board of Directors is currently composed of five members. Commissioners and

Directors are elected for a term of office of three years, without prejudice to the rights of the general

meeting of shareholders to dismiss a Commissioner or Director during their term of office. The

executive officers of our Company serve at the discretion of the Board of Directors.

None of the Commissioners, Directors or our key management has faced any conviction in relation to

offences relating to fraud, has been associated with any bankruptcies, receiverships or liquidations,

has been the subject of any official public investigation and/or sanctions by statutory or regulatory

authorities (including designated professional bodies), or has been disqualified by a court from acting

as a member of the Board of Commissioners or the Board of Directors or from acting in the

management or conducting our affairs during the five-year period immediately prior to the date of this

Offering Circular.

The Board of Directors may take action on behalf of our Company when represented by the President

Director. In the event the President Director is not present or is unavailable for any reason, any

Director may represent our Company. For certain transactions where there is a conflict of interest

between or among members of the Board of Directors, Board of Commissioners and/or the

shareholders of our Company, the Board of Directors is required to obtain approval from independent

shareholders at a general meeting of shareholders in accordance with BAPEPAM-LK Regulation No.

IX.E.1.

Under Indonesian Company Law, prior approval from the shareholders is required for, among other

things: (i) the transfer or disposal of rights or encumbrances or the action to encumber all or more than

50% of our total net assets, (ii) amendments to our Articles of Association, (iii) a merger,

consolidation or acquisition, (iv) liquidation, (v) material transactions with a value of more than 50%

of our equity, or (vi) conflict-of-interest transactions (which have various attendance and voting

thresholds). In addition, based on IDX Regulations, at least 30% of the members of the Board of

Commissioners and at least one member of the Board of Directors must be independent.

Board of Commissioners

The principal functions of our Board of Commissioners are to give advice and recommendations to,

and supervise the policies of, our Board of Directors. The Board of Commissioners consists of at least

two members, one of whom is the President Commissioner. Each Commissioner serves a term of three

years. Shareholders at a general meeting of shareholders have the power to nominate, elect and remove

members of the Board of Commissioners by means of a shareholder resolution.

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Certain information with respect to our Commissioners is set out below:

Name Position Age

The First Date of

Current Position

Appointment

Mr. Alfonso Djakaria Rahardja President Commissioner andIndependent Commissioner

65 29 June 2015

Mr. Adjie Rustam Ramdja Commissioner 61 12 October 2012

Mr. Susanto Setiono Independent Commissioner 58 29 June 2015

Alfonso Djakaria Rahardja, President Commissioner and Independent Commissioner. Mr. Rahardjahas been the President Commissioner and Independent Commissioner of our Company since 2015. Hepreviously served as General Manager of PT Golden Star from 1990 to 1992, as Account Director ofPT Inter Admark Dentsu Indonesia from 1992 to 2000, and as Managing Director of PT FortuneIndonesia from 2000 to 2004. He was a Director of PT Kino Indonesia from 2004 until 2014. Mr.Rahardja was awarded a Bachelor’s degree in Medicine from Universitas Islam Sultan Agung in 1976.

Adjie Rustam Ramdja, Commissioner. Mr. Ramdja has been the Commissioner of our Company since2012. He previously served as Chief of Regional Police Riau from 2009 to 2010, and as Main TeachingStaff of High Staff and Management School (Police Education Institution) from 2011 to 2012. Dr.Ramdja graduated from the INP High Staff and Management School in 2000, and National ResilienceInstitute of the Republic of Indonesia in 2005.

Susanto Setiono, Independent Commissioner. Mr. Setiono has been an Independent Commissioner ofour Company since 2015. He previously served as a Credit Analyst at PT Astra International, Inc. —Honda Division from 1982 to 1986, and as a Marketing Officer, and then as Vice President Director,for PT Gajah Surya Multi Finance Jakarta from 1986 to 1992. Mr. Setiono also served at PT BankDagang Nasional Indonesia from 1992 to 1997, his latest position being General Manager of CreditMarketing and Services at Head Office, at PT Bank Ganesha from 1997 to 2012, his latest positionbeing Director of Business, and as Business Development General Manager of PT Equity FinanceIndonesia from 2013 to 2014. Mr. Setiono was awarded a Bachelor’s degree in economics fromAtmajaya University Jakarta in 1981 and a Master’s degree in business administration from HullUniversity (London) in 1991.

Board of Directors

The day-to-day management of our Company is conducted by our Board of Directors. Under ourArticles of Association, the Board of Directors consists of at least two members, one of whom is thePresident Director. Members of the Board of Directors are nominated, elected and removed byshareholders resolutions in a general meeting of shareholders. Each Director serves for a term of threeyears.

Certain information with respect to our Directors is set out below:

Name Position Age

The First Date of

Current Position

Appointment

Mr. Harry Sanusi President Director 48 8 February 1999

Mr. Tjiang Likson Chandra Vice President Director 49 14 August 2002

Mr. Rody Teo Director 43 29 June 2015

Mr. Peter Chayson Director 43 29 June 2015

Mr. Alex Kurniawan Independent Director 38 29 June 2015

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Mr. Harry Sanusi, CEO and President Director. Mr. Sanusi established the first company in the group,DLS, opening its first branch in 1991. He also established PT KSI in 1997, the Company (previouslyknown as PT KEK) in 1999, PT Prime Restaurant Indonesia in 2005, and PT MKI in 2013. Mr. Sanusihas been CEO of DLS and the Company since their dates of establishment to the present date. Mr.Sanusi has also served as Commissioner of PT Prime Restaurant Indonesia from 2013 to the presentdate, Vice President Commissioner of PT MKI from 2013 to the present date, Director of KinoInternational from 2013 to the present date, Director of KCP from 2004 to the present date, Directorof KCM from 2004 to the present date, and Director of KVC from 2013 to the present date. Mr. Sanusiwas awarded a Bachelor’s degree in Pharmacy from Pancasila University in 1991.

Tjiang Likson Chandra, Vice President Director. Mr. Chandra has been the Vice President Director ofour Company since 1999. He previously served as Branch Manager of DLS from 1994 to 1996, asGeneral Manager of DLS from 1996 to 1999, as Director of PT KSI from 2007 to 2013. Mr. Chandrahas also served as a Commissioner of PT MKI from 2013 to the present date, President Director ofKCP from 2004 to the present date, and President Director of KCM from 2006 to the present date. Mr.Chandra was awarded a Bachelor’s degree in Pharmacy from Pancasila University in 1991.

Rody Teo, Director. Mr. Teo has been the Operations Director of our Company since 2012. Hepreviously served as a Plant Manager for us from 1999 to 2004, as a General Manager from 2005 to2007, and as our Plant and Purchasing Director from 2008 to 2012. Mr. Teo was awarded a Bachelorof Economics degree in Accounting from Widyatama University, previously named Sekolah TinggiIlmu Ekonomi Bandung (STIEB) University, in 1996.

Peter Chayson, Director. Mr. Chayson has been the Group Finance Director of our Company since2013. He also currently serves as a Director of Kino International, being appointed to this position in2013. He previously served as Geomarket Treasury Manager at Schlumberger Oilfield Services fromJanuary 2003 to September 2003, as CFO, Financial Controller and Corporate Secretary at PT RigTenders Indonesia Tbk Chuan Hup Holdings (Singapore Office) from 2003 to 2008, and as GeneralManager at PT Berlian Laju Tanker Tbk from 2008 to 2013. Mr. Chayson was awarded a Bachelor ofScience (Hons) degree in applied accounting from Oxford Brookes University, United Kingdom in2002, a Postgraduate Diploma in Finance from Monash University, Australia, in 1999, and a Masterof Business degree in Banking and Finance from Monash University, Australia, in 2000.

Alex Kurniawan, Director. Mr. Kurniawan has been the Marketing Director of our personal care,beverages, and pharmaceutical divisions since 2013. He previously served as Associate BrandManager at Mead Johnson Indonesia from 2002 to 2004, as Brand Manager at Reckitt Benckiser from2004 to 2006, as a Senior Brand Manager at PT Bentoel Prima from 2006 to 2007, as a Sales andMarketing Manager for L’Oreal Indonesia from 2007 to 2008, as Head of Marketing for PepsiCoIndonesia from 2008 to 2013. Mr. Kurniawan was awarded a Bachelor’s degree in Accounting fromthe University of Surabaya in 1999, and a Master of Management degree (Summa Cum Laude) fromthe Prasetiya Mulya Graduate School of Management in 2002.

Compensation

The total remuneration (salary and discretionary bonus) paid to our Commissioners and Directors wasRp2,487 million, Rp11,734 million, Rp29,016 million and Rp16,819 million (net after tax) for 2012,2013 and 2014 and the six months ended 30 June 2015, respectively.

Management and Employee Stock Allocation

Pursuant to Deed No.46 dated 14 July 2015 and circular letters of our Board of Commissioners dated3 August 2015 and 7 October 2015, we have agreed to grant an allocation of Primary Shares to ouremployees through an employee stock allocation programme (“ESA Programme”) in the amount of30,000 Primary Shares. The ESA Programme will be implemented in accordance with Regulation No.IX.A.7.

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A participant in the ESA Programme must satisfy the following requirements:

i. have been a permanent employee for at least one year as at 30 June 2015;

ii. hold a position of assistant manager or higher;

iii. not be subject to administrative sanction/suspension on the implementation date of the ESAProgramme; and

iv. not be on an unpaid leave.

The Board of Directors and the Board of Commissioners of our Company and DLS are not allowedto participate in the ESA Programme. The right to participate in the ESA Programme may beterminated if an employee fails to comply with the terms set out in ESA Programme. The Board of theDirectors has the authority to cancel or withdraw the allocation of shares to the employees in wholeor in part.

The exercise cost of the ESA Programme will be borne by the Company. There are no costs to be borneby the employees who are entitled to participate in the ESA Programme. The Offering Price will beapplied as the ESA exercise price. Each ESA participant is entitled to receive 100 Primary Shares.Payment will be made by our Company to the bank account assigned by the Joint Domestic Leadunderwriters to receive IPO subscription payments (IPO account).

The parties responsible for the ESA Programme from the Company are the corporate secretary and thehuman resource division.

Corporate Governance

Corporate Secretary

In accordance with IDX requirements under IDX Rule No. I-A, Attachment to the Decree of Board ofDirectors of IDX No. Kep-00001/BEI/01-2014 dated 20 January 2014 on The Listing of Shares (Stock)and Equity-Type Securities Other Than Stock Issued by the Company, a company which intends to listits Shares on the IDX must have a corporate secretary for the purpose of implementing good corporategovernance. The function of a corporate secretary must be performed by one of the directors of thelisted company or an official of the listed company who is specifically appointed to conduct suchfunction. In the event the corporate secretary is not a director of the relevant listed company, the boardof directors of the listed company must be responsible for any information submitted by the corporatesecretary. OJK Regulation No. 35/POJK 04/2014 dated 8 December 2014 regarding CorporateSecretary of Issuer or Public Company also provides provisions regarding the corporate secretary andits function. The functions, obligations and requirements of our corporate secretary are determined bythe Board of Directors, and, after our listing on the IDX, are also regulated by the OJK regulationsand the IDX regulations. In accordance with the appointment letter No. 001/BOD-CEO/SK/072015dated 27 July 2015, we have appointed Peter Chayson as our corporate secretary.

Audit Committee

In accordance with IDX requirements under IDX Rule No I-A, Attachment to the Decree of Board ofDirectors of IDX No Kep-00001/BEI/01-2014 dated 20 January 2014 on The Listing of Shares (Stock)and Equity-Type Securities Other Than Stock Issued by the Company, a company which intends to listits Shares on the IDX must have an audit committee or, for any prospective listed company which doesnot have an audit committee, will form an audit committee. We have set up an audit committeeconsisting of three members with Susanto Setiono acting as the chairman. BAPEPAM-LK Rule No.IX.I.5, Attachment to the Decree of Chairman of BAPEPAM-LK No. Kep-643/BL/2012 dated 7December 2012 on the Formation and Guidelines on Working Implementation of Audit Committee

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(“BAPEPAM-LK Rule No. IX.I.5”), also provides provisions regarding the audit committee. Thefunctions, obligations and requirements of each member of our audit committee are regulated by thedecisions of the Board of Commissioners, the Indonesian Company Law, and, after our listing on theIDX, the OJK regulations and the IDX regulations.

Internal Audit

In accordance with BAPEPAM-LK Rule No. IX.I.7, Attachment to the Decree of Chairman ofBAPEPAM-LK No. Kep-496/BL/2008 dated 28 November 2008 regarding Formation and theGuidelines on Drafting the Charter of the Internal Audit Unit and IDX Rule No. I-A, Attachment tothe Decree of Board of Directors of IDX No. Kep-00001/BEI/01-2014 dated 20 January 2014, anissuer or a public company is required to establish an internal audit unit, which is a working unitwithin the issuer or the public company that performs the internal auditing function. The internal auditunit must consist of at least one internal auditor. Where the internal audit unit consists of one internalauditor, he or she must also act as the chief of the internal audit unit. The main duties andresponsibilities of the internal audit unit are as follows:

• preparing an annual audit work plan, including budgets and resources, and coordinatingwith the audit committee of the company;

• conducting special audits at the request of the management;

• using risk analysis to develop audit plans;

• assisting Directors in fulfilling their responsibilities by carrying out examinations andassessments of efficiency and effectiveness in finance, accounting, human resources,operational, marketing, information technology and other activities;

• participating as advisors in system designing;

• ensuring that all company assets have been reported and protected from damage and loss;

• assessing the performance of the work unit in the group with suggested improvements;

• implementing operational and compliance audits on the management activities to ensurethat all policies, plans and procedures of the company have been performed accordingly andthe applicable laws have been complied with;

• preparing and submitting audit reports on significant findings resulting from the assessmentto the President Director and the Board of Commissioners; and

• monitoring, analysing and reporting on suggested improvements and their implementation.

We have appointed Sumianty as the Head of Internal Audit Unit, effective from 27 July 2015.

Nomination and Remuneration Committee

Under OJK Regulation No. 34/POJK.04/2014 on Nomination and Remuneration Committee of theIssuer or Public Company dated 8 December 2014, an issuer or a public company is required to havethe function of nomination and remuneration conducted by the board of commissioners. The board ofcommissioners may form a nomination and remuneration committee consisting of at least threemembers, with an independent commissioner acting as the head of the committee, while the othermembers may be: (i) members of the board of commissioners; (ii) outside the relevant issuer or publiccompany; or (iii) serving managerial positions under the board of directors in charge of humanresources. We have set up a nomination and remuneration committee consisting of the three ofmembers of our Board of Commissioners with Mr. Alfonso Djakaria acting as Chairman.

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The nomination and remuneration committee is responsible for:

• providing recommendations to the Board of Commissioners concerning: (i) the composition

of the Board of Directors and/or the Board of Commissioners; (ii) policies and criteria

required in the nomination process; (iii) policies on the performance evaluation for the

board of directors and/or the Board of Commissioners; (iv) remuneration structure; (v)

remuneration provisions; and (vi) the amount of remuneration;

• assisting the Board of Commissioners in evaluating the performance of the Board of

Directors and/or the Board of Commissioners pursuant to evaluation standards;

• providing recommendations to the Board of Commissioners regarding skill development

program for the board of directors and/or the Board of Commissioners;

• nominating qualified candidates for members of the Board of Directors and/or the Board of

Commissioners to be submitted to the general meeting of Shareholders;

• providing recommendations to the Board of Commissioners on the structure, policies and

nominal of the remuneration; and

• assisting the Board of Commissioners in evaluating the performance of the Board of

Directors and/or the Board of Commissioners in light of the remuneration received by the

Board of Directors and/or the Board of Commissioners.

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PRINCIPAL SHAREHOLDERS

Our authorised share capital is Rp480 billion consisting of 4.8 billion Shares of par value Rp100 each

and the total number of issued and fully paid Shares is Rp120 billion, none of which have so far been

listed on any securities exchange. After the completion of the Global Offering, we will have

1,428,571,500 Shares outstanding, assuming the sale of all of the Offer Shares.

The following table sets forth certain information with respect to the share ownership of our

Controlling Shareholders, PT Kino Investindo and Mr. Harry Sanusi, immediately prior to completion

of the Global Offering, on a pro forma as adjusted basis giving effect to the Primary Offering

(assuming all Primary Shares are fully subscribed and sold), and on a pro forma as adjusted basis

giving effect to the Global Offering (assuming all Offer Shares are fully subscribed and sold).

Actual As Adjusted(1) As Adjusted(2)

ShareholdersNumber of

SharesPercentage of

SharesNumber of

SharesPercentage of

SharesNumber of

SharesPercentage of

Shares

PT Kino Investindo 1,050,000,000 87.5% 1,050,000,000 73.5% 992,857,100 69.5%

Mr. Harry Sanusi 150,000,000 12.5% 150,000,000 10.5% 150,000,000 10.5%

Public shareholders � � 228,541,500 16.0% 285,684,400 20.0%

Employee StockAllocation Programme — — 30,000 0.0%(3) 30,000 0.0%(3)

Total 1,200,000,000 100.0% 1,428,571,500 100.0% 1,428,571,500 100.0%

Notes:

(1) Giving effect to the Primary Offering (assuming all of Primary Shares are fully subscribed and sold).

(2) Giving effect to the Global Offering (assuming all of Offer Shares are fully subscribed and sold).

(3) Rounded down to zero.

Our Controlling Shareholders exercise effective control of our Company, including the power to elect

our Directors and Commissioners and determine the outcome of any action requiring shareholders’

approval. Our Controlling Shareholders may have other business interests outside of our operations

and may take actions, which may or may not involve us, that prefer or benefit them or other companies

over us, which could materially and adversely affect our business, financial condition, results of

operations and prospects. See “Risk Factors — Risks relating to an Investment in our Shares — The

interests of our Controlling Shareholders may conflict with the interests of purchasers of the Offer

Shares”.

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RELATED-PARTY TRANSACTIONS

The material related-party transactions that we and our subsidiaries have entered into with ouraffiliates are summarised below. We believe that each of these arrangements have been entered intoon arm’s-length terms or on terms that we believe have been at least as favourable to us as similartransactions with non-related parties would have been.

Under BAPEPAM-LK Regulation No. IX.E.1, attached to the Decree of Chairman of Capital MarketSupervisory Board and Financial Institution No. KEP-412/BL/2009, dated 25 November 2009, onAffiliated Transaction and Conflict of Interest in Certain Transactions (“BAPEPAM-LK RegulationNo. IX.E.1”), related-party transactions are divided into two categories, namely affiliated-partytransactions and conflict-of-interest transactions.

BAPEPAM-LK Regulation No. IX.E.1 defines a “transaction” as activities related to:

(a) providing and/or receiving loans;

(b) acquiring, disposing of or utilising assets, including in the context of guarantees;

(c) acquiring, disposing of or utilising services or securities of a company or controlled company;or

(d) entering into contracts in relation to the activities mentioned in (a), (b) and (c) above,

whether implemented as a one-time transaction or a series of transactions for a certain objective oractivity.

Affiliated-Party Transaction. An affiliated-party transaction is defined under BAPEPAM-LKRegulation No. IX.E.1 as a transaction conducted between a company listed on IDX or a controlledcompany of the listed company, and an affiliate of the listed company or an affiliate of a member ofthe listed company’s Board of Directors/Board of Commissioners, or a substantial shareholder (beinga shareholder who, directly or indirectly, owns at least 20% of the issued shares, with voting rights,in the listed company or such other lower threshold as determined by OJK). A “controlled company”means a company controlled either directly or indirectly by a listed company.

Affiliated-party transactions not involving a conflict of interest do not require the approval ofindependent shareholders. Generally, detailed information regarding such a transaction and a summaryof the appraisal report regarding the transaction must be publicly announced and the evidence of suchannouncement must be reported to OJK along with supporting documents (including a fairness opinionfrom an independent appraiser) within two business day after such affiliated-party transaction hasbeen conducted. BAPEPAM-LK Regulation No. IX.E.1 also provides exemptions for certainaffiliated-party transactions. If an exemption is available, the transaction will either be exempt fromboth the requirement for public announcement and reporting to OJK, or exempt from the requirementfor public announcement but still subject to the requirement to report the transaction to OJK, asapplicable.

Transactions that are required to be reported to OJK, but not publicly announced, include, amongothers: (i) any transaction concluded to satisfy any obligation under any applicable laws andregulations or court order; (ii) any transaction with a value of less than 0.5% of the total paid-upcapital of the listed company not exceeding Rp5 billion; or (iii) any transaction between the listedcompany and its controlled entity/company where the listed company owns at least 99.0% shares insuch entity/company.

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Transactions that are not required to be disclosed to the public or reported to OJK include, amongothers: (i) any transaction that constitutes the core business of the listed company or its controlledcompany; (ii) any transaction that constitutes supporting activities of the core business of the listedcompany or its controlled company; or (iii) ongoing transactions that have occurred before the initialpublic offering of the listed company or before the submission of the registration statement that hasbeen disclosed in the initial public offering prospectus, provided that the terms and conditions of thetransactions have not changed in a manner that may cause any loss to the listed company.

Conflict-of-Interest Transaction. Any transaction by a company listed on the IDX which entails aconflict of interest must be approved by a majority of the shareholders who are not party to suchconflict of interest in the proposed transaction. A “conflict of interest” is defined in BAPEPAM-LKRegulation No. IX.E.1 as a conflict between the economic interests of a company, on the one hand,and the personal economic interests of any member of the Board of Commissioners, Board of Directorsor substantial shareholders, which has the potential to result in a loss for the company. Whether or nota conflict of interest exists would be determined by an independent appraiser. OJK has the power toenforce this rule, and our shareholders may also bring enforcement actions based on this rule.

A brief description of our significant affiliated-party transactions (as described under BAPEPAM-LKRegulation No. IX.E.1) is provided below.

Distribution Agreements

Distribution Agreement between DLS and PT MKI

DLS and PT MKI, as our associated company, entered into a Distribution Agreement on 10 October2013. PT MKI has appointed DLS to be the sole distributor of its products in the territory of Indonesia.This agreement is valid for five years, or until 10 October 2018, and will be automatically renewedupon expiry.

PT MKI will provide DLS with certain discount based on a purchase price list provided by PT MKI.In principle, PT MKI is responsible for the delivery of its products to DLS. PT MKI is also responsiblefor replacing any defective products. Prior to the return of any defective products to PT MKI, DLSmust submit an application for the return of goods in accordance with the “Return of Goods Policy”established by PT MKI. DLS is responsible for any defective products arising from the handling anddelivery of the products to the local distributors or the customers and, as compensation, PT MKI willprovide additional discount to the prices listed on the purchase price list which will be deducteddirectly from the amounts payable to PT MKI.

The distribution agreement may be terminated by mutual agreement at any time. Additionally, PT MKIhas the right to give DLS a written warning if DLS commits any breach under the agreement. PT MKImay also terminate the agreement and immediately appoint another distributor in Indonesia if DLSbecomes insolvent or bankrupt, or is unable to carry out its usual business activity. Upon terminationof the agreement, DLS must return all the inventories, including marketing materials, point of salematerials, and trademarks, attributable to PT MKI and PT MKI is obliged to repurchase any unsoldproducts of saleable quality.

Cooperation Agreement between our Company and DLS

Our Company and DLS entered into a cooperation agreement on 8 August 2014. Under the terms ofthis cooperation agreement, our Company appointed DLS to distribute and market all of its productsin Indonesia or any other territory agreed between us. Pursuant to this cooperation agreement, DLSmay appoint another party as a sub-distributor to distribute the products inside the agreed territoryupon written notification to our Company, provided that the list of such appointed sub-distributors hasbeen notified to our Company in writing. The purchase price will be determined in a separate pricelist, with any discounted rates being determined later. The cooperation agreement is valid for a periodof five years from 8 August 2014, and will be automatically renewed for a further five years upon

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expiry. The distribution agreement may be terminated by the mutual agreement of both parties at any

time. Our Company has the right to give DLS a written warning if DLS commits any breach under the

agreement, and if no remedy is made by DLS, our Company has a right to terminate the agreement

unilaterally.

Distributor Agreement between our Company and KCP

Our Company and KCP entered into a distributor agreement on 2 January 2014 which was amended

on 2 January 2015. Pursuant to the terms of this distributor agreement, our Company appointed KCP

as the sole distributor of its products (which include, among others, “Ellips”, “B&B Kids”, “Eskulin”,

“Ovale”, “Panther” and “Sasha”) in the territory of the Philippines. However, execution of this

agreement will not diminish our Company’s rights to appoint other distributors in the Philippines. The

agreement is valid for five years, or until 2 January 2019, and will be automatically renewed for a

further five years upon expiry.

Distributor Agreement between our Company and KCM

Our Company and KCM entered into a distributor agreement on 2 January 2014. Pursuant to the terms

of this distributor agreement, our Company appointed KCM as the sole distributor of its products

(which include, among others, “Ellips”, “B&B Kids”, “Master Kids”, “Eskulin”, “Ovale”, “Resik-V”,

“Sleek”, “Intense” and “Sasha”) in the territory of Malaysia. However, execution of this agreement

will not diminish our Company’s rights to appoint other distributors in Malaysia. The agreement is

valid for five years, or until 2 January 2019, and will be automatically renewed for a further five years

upon expiry.

Distributor Agreement between our Company and KVC

Our Company and KVC entered into a distributor agreement on 4 May 2015. Pursuant to the terms of

this distributor agreement, our Company appointed KVC as the sole distributor of its products in the

territory of Vietnam. However, execution of this distributor agreement has not diminished our

Company’s right to appoint other distributors in Vietnam. This distributor agreement is valid for five

years, or until 4 May 2020, and will be automatically renewed for a further five years upon expiry,

unless written notice of termination is given by either party within three months of the expiry date.

Management Service Agreement between our Company and KCM

Our Company and KCM entered into a management service agreement on 2 January 2014. Under the

terms of this agreement, our Company appointed KCM to conduct business development of its

products in ASEAN countries, including, but not limited to, Laos, Cambodia, Thailand, Myanmar,

Malaysia, Singapore, Brunei, Japan and other countries in the ASEAN to be approved or designated

by our Company, such as Japan. Our Company agrees to pay a monthly management fee to KCM of

US$35,227. This agreement was valid until 2 January 2015 and, under the automatic renewal

provisions of the agreement, was renewed for an additional year until 2 January 2016.

Sub-distribution Agreements between DLS and Affiliated Parties

DLS has entered into several sub-distribution agreements with companies owned by Mr. Haryanto

Sanusi, who is a relative of Mr. Harry Sanusi (“Affiliated Sub-distributor Agreements”). The terms and

conditions of the Affiliated Sub-distributor Agreements are the same as those with other independent

third party sub-distributors.

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The following table provides the details of the Affiliated Sub-distributor Agreements entered by DLS:

Agreements Term of Agreement Product Categories

PT Sumber Abadi Sentratama

Sub-distribution Agreement No.046/DLS/SPK-PHC/I/2015 dated 17 January 2015

2 January 2015 —31 December 2015

Personal HealthCare Pharmaceutical

Sub-distribution Agreement No.023/DLS/SPK-FOOD/I/2015 dated 17 January 2015

1 January 2015 —31 December 2015

Beverages CandySnacks

Sub-distribution Agreement No.049/DLS/SPK-BV/I/2015 dated 17 January 2015

2 January 2015 —31 December 2015

Health DrinksEnergy Drinks

PT Tri Havian Sejahtera

Sub-distribution Agreement No.050/DLS/SPK-BV/I/2015 dated 17 January 2015

2 January 2015 —31 December 2015

Health DrinksEnergy Drinks

PT Anugrah Primaraksa

Sub-distribution Agreement No.024/DLS/SPK-FOOD/I/2015 dated 17 January 2015

1 January 2015 —31 December 2015

Beverages

License Agreements

Trademark License Agreement between our Company and KCM

Our Company and KCM entered into a trademark license agreement on 8 January 2015. Pursuant to

the terms of this agreement, our Company granted KCM a non-transferable exclusive license to use

the trademarks of “Absolute”, “B&B” (Class 3), “B&B” (Class 16), “Ellips”, “Eskulin”,

“Mistermaster”, “Ovale”, “Resik-V”, “Samantha” and “Sasha”, for the purposes of marketing,

promoting, selling and distributing our Company’s products in the territory in Malaysia. KCM agrees

to pay a 1% royalty on the total sales value of the Company’s products distributed by KCM in the

territory in Malaysia. This license agreement is valid until 8 January 2016, with an option to renew

upon written notice to the other party at least 30 days prior to the expiry date.

Trademark License Agreement between our Company and KCP

Our Company and KCP entered into a trademark license agreement on 8 January 2015. Pursuant to the

terms of this agreement, our Company granted a non-transferable exclusive license to KCP to use the

trademarks of “B&B”, “Ellips & Device”, “Intense by Master & Device”, “Panda”, “Panther”,

“Samantha & Device”, “Sasha & Device”, “Eskulin”, “Resik-V”, “Resik-V (Stylized)” and

“Absolute”, for the purposes of marketing, promoting, selling and distributing our products in the

Philippines. KCP agrees to pay a 1% royalty on the total sales value of the Company’s products

distributed by KCP in the Philippines. This license agreement is valid until 8 January 2016, with an

option to renew upon written notice to the other party at least 30 days prior to the expiry date.

Trademark License Agreement between our Company and KVC

Our Company and KVC entered into a trademark license agreement on 8 January 2015. Pursuant to

the terms of this agreement, our Company granted a non-transferable exclusive license to KVC to use

the trademarks of “Panda”, “B&B Kids”, “Ellips”, “Eskulin”, “Mister Master & Device”, “Ovale

Maskulin”, “Ovale”, “Panther”, “Resik-V”, “Samantha” and “Sleek”, for the purposes of marketing,

promoting, selling and distributing our products in the Vietnam. KVC agrees to pay a 1% royalty of

the net sales of products in the Vietnam. This license agreement is valid until 8 January 2016, with

an option to renew upon written notice to the other party at least 30 days prior to the expiry date.

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Character License Agreement between our Company and KCP

Our Company and KCP entered into a character license agreement on 2 January 2014. According tothe terms of this agreement, KCP will pay a license fee to our Company in respect of productsmarketed, distributed, imported or sold by KCP, (in addition to the 1% royalty payable under thetrademark license agreement described above) which use Disney standard character, Disney Babies,Disney Princess, Winnie the Pooh, Baby Pooh, Marvel Spiderman Classic Style Guide, DC ComicsBatman, DC Comics Superman, Warner Bros Looney Tunes, Ben 10, Powerpuff Girls and Barbie. Thelicense fee, calculated as a percentage of excess net sales of products which use the charactersspecified above, shall be paid by KCP no later than 90 days following the issuance of an invoice. Thislicense agreement is valid until 2 January 2016 and will be automatically renewed for a further twoyears upon expiry unless written notice of termination is given by either party within 30 days of theexpiry date.

Borrow and Use Agreement between our Company and Mr. Harry Sanusi

The Company has entered into a borrow and use agreement with Mr. Harry Sanusi dated 10 September2015. Pursuant to the agreement, Mr. Harry Sanusi has granted full authority to the Company to usethe “KINO” trademark with registration number IDM000113271 for the purpose of the Company’sbusiness activities in each of the territories in which the Company conducts its business. No royaltypayment will be made by the Company in relation to this borrow and use arrangement. The agreementis valid for 10 years from the date of the agreement and may be extended by the parties. The agreementmay be terminated as follows: (i) by the Company if it no longer needs to use the trademark; (ii) bynon-breaching party, if the other party has neglected or breached any of its obligations under theagreement; or (iii) by mutual agreement.

Borrow and Use Agreement between PT MKI and Mr. Harry Sanusi

PT MKI has entered into a borrow and use agreement with Mr. Harry Sanusi dated 10 September 2015.Pursuant to the agreement, Mr. Harry Sanusi has granted PT MKI the right to borrow and use the“KINO” trademarks with registration numbers IDM000267643 and IDM000113277, for the purpose ofproduction, marketing and sale of PT MKI products within and outside the Republic of Indonesia. Noroyalty payment will be made by PT MKI in relation to this borrow and use arrangement. Theagreement is valid for five years from the date of the agreement and may be extended by the parties.

Undertaking Letter of Mr. Harry Sanusi

Mr. Harry Sanusi has applied for the registration of a “KINO” trademark to the DGIP. This applicationis still being examined by the DGIP and Mr. Harry Sanusi has not received any approval or rejectionin relation to such application. Pursuant to an undertaking letter dated 10 September 2015, Mr. HarrySanusi undertakes that: (i) upon receipt of the approval of the “KINO” trademark registrationapplication, he will execute an agreement in relation to the utilisation of such “KINO” trademark withthe Company; (ii) Mr. Harry Sanusi shall promptly notify the Company in the event that DGIP rejectssuch registration application; and (iii) Mr. Harry Sanusi will not object to the use of the “KINO”trademark by the Company before the DGIP issues the Kino trademark certificate.

Statement Letter of Mr. Harry Sanusi

Pursuant to a statement letter dated 9 October 2015, Mr. Harry Sanusi has granted our Company theexclusive right to use “KINO” trademarks with registration number IDM000113271 andJ002015010997, which are still being examined by the DGIP, in connection with FMCG businessesand agreed that he will not use or grant permission to other parties to use the “KINO” trademarks inthe same or similar businesses.

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Deed of Transfer of Rights of Segar Sari Trademark

Pursuant to a deed of transfer of rights dated 12 May 2015 between Mr. Harry Sanusi and PT MKI,as amended by an addendum dated 10 September 2015, the parties have agreed that, as the transferof rights of the “Segar Sari” trademarks with registration numbers (i) IDM000418298, (ii)IDM00041040, (iii) IDM000411576, and (iv) IDM000410762 (“Segar Sari Trademarks”) has not beenrecorded in the General Register of Trademarks and announced in the Official Gazette of Trademark,Mr. Harry Sanusi will not object to PT MKI’s use of the Segar Sari Trademarks in the production,marketing and sale of PT MKI products before the transfer is officially completed.

Sale and Purchase Agreement between our Company and Mr. Harry Sanusi

Pursuant to a sale and purchase agreement dated 23 October 2015 between our Company and Mr.Harry Sanusi, Mr. Harry Sanusi agreed to sell, and our Company agreed to purchase, the “Panther”trademark class 32 with registration number IDM000437036 for Rp1,000,000. Mr. Harry Sanusi hasalso agreed that he will not object to our Company’s use of the “Panther” trademark in our production,marketing and selling activities before the transfer of the trademark is officially completed.

Lease Agreements

Lease Agreements between our Company and DLS

Our Company and DLS have entered into a number of lease agreements with respect to the leasing ofwarehouses by DLS. The lease rates range from Rp140 million to Rp450 million per year (subject toVAT). Such lease agreements include:

(i) On 30 June 2015, our Company entered into lease agreements, valid until 30 June 2016, withDLS for land and building located at:

a. District of Cilodong, Depok Regency, West Java Province;

b. Bekasi City, West Java Province;

c. Sub-District of Sunter Jaya, North Jakarta City; and

d. District of Waru, Sidoarjo Regency, East Java Province.

(ii) On 2 January 2014, our Company entered into a lease agreement with DLS for land and buildingslocated in the District of Babakan Ciparay, Bandung City, West Java Province. The lease is validuntil 2 January 2016.

(iii) On 30 April 2014, our Company entered into a lease agreement with DLS for land and buildingslocated in the Sub-District of Kamal Muara, District of Penjaringan, North Jakarta City. Thelease is valid until 30 April 2016.

Lease Agreement between DLS and Mr. Harry Sanusi

On 12 December 2013, DLS entered into a lease agreement with Mr. Harry Sanusi for the lease of theDLS head office, located in West Jakarta City. The lease is valid until 31 December 2014, and isautomatically renewed unless terminated by either party.

Borrow and Use Agreement between our Company and Mr. Harry Sanusi

On 23 December 2014, our Company entered into a lease agreement with Mr. Harry Sanusi in relationto the lease of our Company’s warehouse located in Sukomanunggal District, Surabaya City, East JavaProvince. The lease is valid until 22 December 2015, and will automatically be renewed unlessterminated by either party.

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Loan Agreements

Loan Agreement between our Company and Kino International

Our Company and Kino International entered into a loan agreement on 30 May 2014 as lastly amended

by the second amendment on 10 August 2015. Pursuant to the terms of this loan agreement, our

Company grants Kino International a loan in the amount of US$500,000 for the purpose of Kino

International’s operational costs. This loan is subject to 10% interest per annum. This loan agreement

is valid for five years starting from the first loan acceptance date.

Loan Agreement between KVC and Kino International

a. Kino International and KVC entered into a loan agreement on 15 May 2015 as amended by the

first amendment dated 5 June 2015. Pursuant to the terms of this loan agreement, Kino

International grants KVC a loan in the amount of US$200,000 for the purpose of KVC’s

operational costs. This loan is subject to 6.5% interest per annum. This loan agreement is valid

until the loan is fully repaid, at the latest 12 months after KVC received the loan.

b. Kino International and KVC entered into a loan agreement on 16 July 2015 as amended by the

first amendment dated 22 July 2015. Pursuant to the terms of this loan agreement, Kino

International grants KVC a loan in the amount of US$100,000 for the purposes of KVC’s

operational costs. This loan is subject to 6.5% interest per annum. This loan agreement is valid

until the loan is fully repaid, at the latest 12 months after KVC received the loan.

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SHARE CAPITAL

Immediately prior to the Global Offering, our authorised share capital was Rp480 billion consistingof 4.8 billion Shares of par value Rp100 each and the total number of issued and fully paid Shares wasRp120 billion, none of which have been listed on any securities exchange.

On 14 July 2015, the par value of our Shares was reduced from Rp1,000,000 each to Rp100 each witheffect from 15 July 2015.

The following is a summary of the material rights and restrictions related to our Shares underapplicable provisions of Indonesian law and the provisions of our Articles of Association. Thisdescription does not purport to be complete.

Common Shares

All transfers of our common Shares must be evidenced by an instrument of transfer signed by or onbehalf of the transferor, by or on behalf of the transferee or any other documents which, in the opinionof our Board of Directors, are satisfactory evidence of the transfer. In addition, any transfer of ourShares must comply with the laws and regulations of the Indonesian capital market, including, but notlimited to, Law No. 8 of 1995 on Capital Market (“Indonesian Capital Market Law”) and the rules andregulations of the IDX. Transfers of Shares take effect only after the transfer is registered in theShareholder Register (the “Register”). The transferor of any Shares will be treated as the owner ofthose Shares until the name of the transferee has been recorded in the Register. Under the scriplesssystem, KSEI will be registered as the holder of the Shares in the Register, in its capacity as the centralsecurities depositary institution which holds the Shares on behalf of KSEI participants, which in turnhold the Shares on behalf of shareholders (the “Beneficial Shareholders”).

The holders of Shares whose names are recorded in the Register (the “Registered Shareholders”) areentitled to pre-emptive rights in the event we issue new Shares, convertible bonds, warrants or othersecurities convertible into equity securities except as provided below. See “Risk Factors - RisksRelating to an Investment in Our Shares”. For Shares deposited with KSEI, all ownership rights areautomatically distributed by KSEI, through KSEI participants, to purchasers ultimately holding theShares as Beneficial Shareholders (or their assignees). These pre-emptive rights may be sold andtransferred to third parties without the consent of any party to the extent permitted by the IndonesianCapital Market Law and the rules and regulations of the IDX. If the Registered Shareholders or theBeneficial Shareholders (or their respective assignees) do not exercise their pre-emptive rights withina period of time determined by our Board of Directors (in accordance with the prevailing regulations),after the issuance of pre-emptive rights our Board of Directors may issue these shares, convertiblebonds, warrants or other securities to third parties on the same terms and conditions.

In accordance with OJK Regulation No. 38/POJK.04/2014, we may increase our capital withoutproviding a pre-emptive right to Registered Shareholders or Beneficial Shareholders to subscribe forsecurities, provided that:

• if the purpose of the increase of capital is not to improve our financial position, then suchincrease in issued share capital without pre-emptive rights shall be no more than 10% of thepaid-in capital: (i) within two years for increase of capital without shares ownership program;and (ii) within five years for increase of capital with shares ownership program;

• the main objective of the increase in our authorised share capital is to improve our financialposition and we meet one of the following conditions:

(x) we have negative net working capital and have liabilities of more than 80% of our assetsat the time of the general meeting of shareholders approving the capital increase; or

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(xi) we have defaulted or are not capable of avoiding default in payment of our liabilities with

a non-affiliated provider of a loan, and the loan provider or non-affiliated investor agrees

to receive our shares or convertible bonds to settle the loan.

Other than as described above, our authorised share capital may only be increased or decreased by a

resolution of a general meeting of shareholders and amendment to our Articles of Association. Any

such amendment will be effective only after approval from the Minister of Law and Human Rights is

obtained. In the case of a decrease in the authorised share capital, approval from the Minister of Law

and Human Rights may only be given if: (i) the decrease has been approved by a general meeting of

shareholders; (ii) there are no written objections from the creditors within 60 days after the

announcement; (iii) a settlement has been reached on any objection raised; and (iv) a final and binding

judgment has been rendered by the court relating to any creditors’ lawsuit as the result of objections

by creditors.

Shareholders’ Meetings and Voting Rights

Each Share entitles its holder thereof to cast one vote in a general meeting of shareholders. In the case

of Shares held by KSEI, prior to us taking any corporate action, KSEI must provide us details

concerning the Share entitlements of all the Beneficial Shareholders on whose behalf shares are held.

A KSEI participant holding Shares on behalf of a Beneficial Shareholder is obliged to notify the

Beneficial Shareholder of the issuance of any pre-emptive rights, and deliver to that Beneficial

Shareholder any offering memoranda or other notices that we issue from time to time. Beneficial

Shareholders or their legal representatives have the right to be present and vote at general meetings

of shareholders. See “Indonesian Capital Markets”.

An annual general meeting of shareholders must be held by no later than six months after the end of

the fiscal year. Pursuant to the Indonesian Company Law No. 40 of 2007 (the “Company Law”), our

Board of Directors must submit an annual report at the annual general meeting of shareholders, which

should include at least: (i) annual financial reports; (ii) a report on our activities; (iii) a report

providing details of our corporate and social responsibility implementation; (iv) details regarding any

problems arising during the financial year which affects our activities; (v) a report on the supervisory

duties which have been carried out by our Board of Commissioners during the preceding financial

year; (vi) the names of members of Board of Directors and our Board of Commissioners; and (vii)

details with respect to salary and other remunerations of each member of our Board of Directors and

our Board of Commissioners for the preceding year. This annual report must be made available in our

office for inspection by any shareholder from the day that shareholder is notified of the annual general

meeting of shareholders through the date of the annual general meeting of shareholders.

The Board of Directors itself may not convene an extraordinary general meeting of shareholders. An

extraordinary general meeting of shareholders must be convened upon receipt of written notice

requesting a meeting from one or more shareholders who together hold 10% of our issued Shares. In

the event our Board of Directors does not convene this meeting within 15 days upon receipt of written

notice, then the shareholder may request the same to our Board of Commissioner. Our Board of

Commissioner is required to announce or shareholders as the case may be, an extraordinary general

meeting of shareholders within 15 days after receipt of written notice. In the event our Board of

Commissioner does not convene the general meeting of shareholders within such timeframe, the

relevant shareholders may call a meeting at our expense after obtaining approval from the District

Court. The relevant shareholders who held 10% of our issued Shares, pursuant to OJK Regulation No.

32/POJK.04/2014, is or are, as the case may be, not allowed to shareholder(s) transfer its or their

ownership Shares for at least six months after the convention of the extraordinary general meeting of

shareholders.

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Further, pursuant to OJK Regulation No. 32/POJK.04/2014, we are required to notify the OJK at thelatest five business days before the announcement of the extraordinary general meeting ofshareholders (excluding the date of notice). Thereafter, at least 14 days (excluding the date of notice)prior to the issuance of notice of both extraordinary general meetings and annual general meetings ofshareholders, an announcement must be made by placing an advertisement in: (i) one daily newspaperpublished in Indonesia, which must have a wide circulation in Indonesia, in the stock exchangewebsite, and in the public company website that is in Indonesian and a foreign language (the foreignlanguage shall at least be an English language), if the company is listed in the stock exchange; or (ii)one daily newspaper published in Indonesia, which must have a wide circulation in Indonesia, and inthe public company website that is in Indonesian and a foreign language (the foreign language shallat least be an English language) if the company is not listed in the stock exchange, that a shareholders’meeting is to be called. Notice to the shareholders of the meeting must also be made in the samemanner as described previously, published at least 21 days before the date of the meeting (excludingthe date of the notice and the date of the meeting).

The quorum for an annual general meeting of shareholders is shareholders and/or authorised proxiesrepresenting more than 50% of our issued Shares with voting rights to be represented either in personor by a power of attorney at the meeting. The quorum requirement may be greater, depending on thenature of the resolutions to be considered at the meeting.

If a quorum is not established, then no earlier than ten days and no later than 21 days after the originalgeneral meeting, a second meeting may be held to render a legal and binding resolution on matterswhich were not resolved at the first meeting. The second meeting must be attended by shareholdersrepresenting at least one-third of the total issued Shares. Resolutions adopted at the meeting must beapproved by a majority of the total votes present and cast at the meeting. If a quorum is not reachedat the second meeting, on the Company’s request the chairman of OJK may determine the quorumrequirements for the third meeting.

Shareholders may be represented at a general meeting of shareholders by any person holding a powerof attorney, provided that if the proxy is one of our commissioners, directors or employees, then thevote of any proxy shall not be counted. In order to be adopted, resolutions must receive the affirmativevotes of shareholders holding more than 50% of the Shares which are either present or represented inthe meeting (except for resolutions concerning certain transactions such as: (i) the transfer or disposalof rights or encumbrances or the act of encumbering all or more than 50% of our total net assets; (ii)amendments to our Articles of Association; (iii) a merger, consolidation or acquisition; (iv) aliquidation; or (v) a bankruptcy filing, which have various voting thresholds above that level). Inaddition, for certain transactions involving a conflict of interest, approval from independentshareholders must be obtained in accordance with BAPEPAM-LK Regulation IX.E.1.

Dividends

A portion of our profits, as determined by an annual general meeting of shareholders, after deductionof corporate tax, must be used as a reserve fund up to an amount of 20% of the subscribed capital.This can be used only to cover losses suffered by us. Amounts in the reserve fund that exceed 20%of the subscribed capital may be used for working capital or other purposes in our interest, subject tothe approval of our shareholders. Any interest or other profits earned from the reserve fund must beentered in our profit and loss account.

Dividends, if any, are paid in accordance with a resolution adopted by an annual general meeting ofshareholders, which resolution must establish the amount, the time and manner of payment of thedividends. All Shares which are fully paid and outstanding at the time a dividend or other distributionis declared are equally entitled to dividends or other distributions. Dividends are payable to thepersons whose names are recorded in the Register. Our Articles of Association provide that dividends

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unclaimed after a period of five years will be placed in a special reserve fund and any party entitled

to the unclaimed dividends will have the right to claim those dividends from the fund within five years

from the date the dividends are placed in the fund. After the lapse of the ten-year period, any

unclaimed dividends will belong to us.

Amendments to our Articles of Association

Amendments to our Articles of Association can only be effected pursuant to a resolution at a general

meeting of shareholders attended by shareholders or their lawful proxies representing at least

two-thirds of the total issued Shares. Resolutions adopted at a meeting must be approved by more than

two-thirds of the total valid votes cast at the meeting. Any amendment that would change our name,

our objectives and purpose, our business activities or our term of establishment, or that would increase

or reduce our authorised capital, reduce the issued and paid-up capital or change our status from a

private company to becoming a public company or vice versa will only be effective upon approval by

the Minister of Law and Human Rights. The change of status from a private company to a public

limited liability company will only be effective upon the implementation of the initial of public

offering. Any amendment to our Articles of Association must be made in the form of a notarial deed

no later than 30 days from the date of the general meeting of the shareholders and be notified to the

Minister of Law and Human Rights within 30 days from the date of the notarial deed. Any other

amendments will only be effective as of the date of the letter from the Minister of Law and Human

Rights confirming acceptance of notification of these amendments. A resolution reducing our

Company’s capital must be delivered to our creditors and published in the State Gazette of the

Republic of Indonesia and announced in at least two newspapers published in Indonesia with wide

circulation within seven calendar days after the resolution.

Liquidation

We can be dissolved or liquidated pursuant to: (i) a resolution passed at an extraordinary general

meeting of shareholders in accordance with our Articles of Association; (ii) the expiry of our

incorporation period; (iii) a court decision; (iv) a bankruptcy, when our assets are not sufficient to

settle our obligations or if we are declared to be insolvent; or (v) a revocation of our business licence,

which requires us to be liquidated.

A resolution for our dissolution must be approved at a general meeting of shareholders attended by

the holders of at least three-quarters of the total number of Shares outstanding and approved by the

holders of more than three-quarters of the total votes cast at the meeting. If we are wound up,

dissolved or declared bankrupt, subject to insolvency or for any other reason provided under the

Company Law, the general meeting of shareholders must appoint a liquidator to perform certain

liquidation procedures. If the general meeting of shareholders fails to appoint a liquidator, our Board

of Directors shall act as the liquidator.

The Company Law also provides that the Board of Directors, Board of Commissioners or a shareholder

of a company may apply to a court for a company’s dissolution if: (a) the company does not engage

in business activities for three years or more, which is substantiated by a letter of notification

submitted to the tax agency; (b) the addresses of its majority shareholders are unknown after a notice

has been published in a daily newspaper having wide circulation in Indonesia and accordingly a

General Meeting of shareholders cannot be held; (c) the ownership of the company’s shares is divided

causing the general meeting of shareholders to fail to adopt a valid resolution (for example, two

groups of shareholders each own 50% of the shares); or (d) the assets of a company have decreased

in value such that it is not possible for the company to continue its business activities with its current

assets.

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The liquidators must register the resolution for our dissolution in the Company’s register maintained

by the Minister of Law and Human Rights, publish it in the State Gazette and announce it in two daily

newspapers published in Indonesia, notify our creditors and notify the Minister of Law and Human

Rights (by no later than 30 calendar days from our dissolution), the IDX and OJK in accordance with

prevailing regulations.

Rights of Shareholders

In general, Indonesian law has traditionally afforded shareholders fewer rights than those available in

common law jurisdictions such as the United States. See “Risk Factors — Risks Relating to an

Investment in Our Shares”. The Company Law affords certain rights to shareholders, and certain

additional rights to one or more shareholders collectively representing at least 10% of all voting shares

of a company (the “Minority Shareholders”).

A shareholder generally has the right to commence legal action against us if it has been harmed by

any unfair and unreasonable action taken by us. In addition, each shareholder has the right to request

that we repurchase its Shares at the then prevailing market price if the shareholder disagrees with

certain of our actions which harm the interests of that shareholder or us. These actions include: (i) the

amendment of our Articles of Association; (ii) transfer or disposal of rights or encumbrance of our

assets amounting to more than 50% of our net assets; or (iii) a merger, consolidation, acquisition, or

spin-off of us. Under the Company Law, we may repurchase Shares, but that repurchase: (a) must not

cause our net assets (as stated in our most recent financial position, as approved by the shareholders

within the last six months) to fall below its paid-in capital and reserves; (b) may not cause the

aggregate of the number of our Shares repurchased by us and the number of our Shares that are

pledged or otherwise encumbered for the benefit of us or any other company which Shares are directly

or indirectly owned by us to become more than 10% of our outstanding Shares; and (c) must be

conducted in compliance with the procedures and the requirements stipulated in the Indonesian Capital

Market Law and BAPEPAM-LK Regulation No. XI.B.2 attached to the decision of BAPEPAM-LK No.

KEP-105/BL/2010 on Buy Back of Shares Issued by Issuers or Public Companies dated 13 April 2010.

To the extent that a request to repurchase shares exceeds these limitations, we are required to seek a

third-party purchaser for the Shares. Under Article 40 of the Company Law, Shares repurchased by us

may not be used to cast a vote in a general meeting of shareholders, and will not be counted in

determining the quorum that has to be achieved in accordance with the Company Law and our Articles

of Association.

Our Minority Shareholders have certain other rights. These include the rights to call a general meeting

of shareholders, by court order, in the event that the directors or commissioners fail to convene this

meeting within the stipulated time. Minority Shareholders also have the right to lodge a derivative

action on our behalf against directors or commissioners who, through error or negligence, have caused

losses to us. Under the Company Law, directors and commissioners are obliged to act in good faith,

with full responsibility and in our best interests when carrying out their corporate duties. The Minority

Shareholders may request that we be examined by a court-appointed third party if there is any

suspicion that we have committed an act contrary to law which damages our shareholders or a third

party or if there is any suspicion that any of our directors or commissioners has committed an act

contrary to law which damages us, the shareholders, or a third party. Minority Shareholders may also

apply to a court for our dissolution. However, the Company Law does not specify the circumstances

under which this application may be made.

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INDONESIAN CAPITAL MARKETS

The following information has been derived from publicly available information and has not beenindependently verified by us, the Selling Shareholder, the Joint International Selling Agents, the JointDomestic Lead Underwriters or any of their respective advisors.

Overview of OJK (Otoritas Jasa Keuangan)

In 1976, the Government established the Capital Market Executive Agency, Badan Pelaksana PasarModal or BAPEPAM, the Capital Markets Development Agency (Badan Pembina Pasar Modal) anda national investment trust company, PT Danareksa (Persero) to reactivate and promote thedevelopment of a securities market in Indonesia.

Later, the Capital Market Executive Agency changed its name to the Capital Market SupervisoryAgency, Badan Pengawas Pasar Modal, to reflect the shift in emphasis from development toregulation and supervision. In 1995, the Government issued Indonesian Capital Market Law, whichregulates BAPEPAM’s responsibilities for the guidance, regulation, and day-to-day supervisionnecessary to implement orderly, fair and efficient capital markets, and to protect the interests ofinvestors and the public. Based on Ministry of Finance Decree on 30 December 2005, BAPEPAMoperated under its new name, the Indonesian Capital Markets and Financial Institutions SupervisoryAgency, or BAPEPAM-LK. Pursuant to Law No. 21 of 2011 concerning Financial Service Authorityknown as “Law No. 21/2011”, on 22 November 2011, the authority of BAPEPAM-LK was transferredto OJK, effective December 2012.

OJK is an independent body, which is free from intervention by any other party, and has functions,tasks, and authorities to oversee the supervision, examination and investigation of financial serviceactivities in banking, capital markets, insurance, pension funds, financial institutions, and otherfinancial service institutions, led by a Board of Commissioners (Dewan Komisioner) consisting of ninemembers inaugurated by a Presidential Decree. Among the members, there is one ex-officio memberfrom each of Bank Indonesia and the Ministry of Finance. OJK took over the regulatory andsupervisory duties relating to bank activities from Bank Indonesia from 31 December 2013.

Law No. 21/2011 further requires that OJK provide annual activity reports to the President of theRepublic of Indonesia and the House of Representatives. The OJK budget for operational andadministrative activities shall come from the state budget and fees collected from practitioners infinancial services.

OJK has issued a number of new governance related regulations and is expected to issue up to nineregulations in the field of capital markets regulating issuers and public companies within this year.

Overview of the Indonesia Stock Exchange

The first share issuance listed on the JSX or PT Bursa Efek Jakarta took place in August 1977. Upuntil the end of 1988, the shares of 24 companies were listed on the JSX and the volume of sharestraded was relatively low. The operational transfer of the exchange from BAPEPAM to PT Bursa EfekJakarta was effectively commenced on 13 July 1992. During the period from 1988 to 2000, a numberof reform measures affecting the Indonesian capital markets were announced. These led to theprivatisation of JSX and its establishment as a limited liability company, PT Bursa Efek Jakarta,incorporating 221 securities trading companies as its shareholders.

The various reforms have sought to strengthen the operational and supervisory framework of theIndonesian securities market and to improve the Indonesian securities market’s trading environment.The measures also established an over-the-counter market (“Bursa Parallel”) and private stock

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exchanges outside Jakarta, the first of which was established in Surabaya (the “SSX” or “PT Bursa

Efek Surabaya”). In July 1995, the Bursa Parallel and the SSX were merged to form a single exchange

intended to focus on small- and medium- sized companies. A company could elect to list shares on the

JSX, the SSX or both.

On 30 November 2007, the JSX and SSX were merged to form a single exchange, which took the name

PT Bursa Efek Indonesia, or the IDX. In the terms of regulations, IDX has issued various regulations

related to shares listing, share trading and IDX membership. IDX is expected to change its regulations,

especially to review certain conditions, among others, related to the implementation of Good

Corporate Governance principles in listed companies.

Other reforms were also introduced to provide increased protection for minority shareholders, to

improve disclosure requirements and to clarify listing procedures. As on 31 December 2014, there

were 506 companies listed on the IDX, with a market capitalisation of Rp5,228 trillion (US$420.26

billion), compared to 24 listed companies with a market capitalisation of approximately Rp100.0

billion in December 1987, just prior to the introduction of the capital market reform measures. Of the

506 listed companies on the IDX, the 20 most active stocks in total trading volume accounted for

Rp266 trillion in trading value in the year ended 31 December 2014, approximately 18.3% of the total

trading value on the IDX during the year, and accounted for 539.72 billion shares in trading volume

representing 40.7% of the total trading volume during the year.

At present, trading rules on the IDX are generated in the form of decisions by the IDX. There are

currently five daily trading sessions for the regular market, two daily trading sessions for the

negotiated market, and one daily trading session for the cash market as follows:

Trading Session Market Trading Hours

Pre-opening Session Regular Monday — Friday08:45:00 - 08:55:00

1st Session Regular, Cash and Negotiated Monday — Thursday09:00 - 12:00Friday09:00 - 11:30

2nd Session Regular Monday — Thursday13:30:00 - 15:49:59Friday14:00:00 - 15:49:59

Negotiated Monday - Thursday13:30:00 - 16:15:00Friday14:00:00 - 16:15:00

Pre-closing Session Regular Monday — Friday15:50:00 - 16:00:00

Post-closing Session Regular Monday — Friday16:05:00 - 16:15:00

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Trading of securities is divided into three market segments: regular market, negotiated market andcash market (except for rights issues, which may only be traded in the morning sessions of the cashand negotiated markets). The regular market is the mechanism for trading stock in standard lots on acontinuous auction market during exchange hours. Regular market and cash market trading must becarried out in unit lots of 100 shares. The price movements:

• for shares with previous price less than Rp500, in multiples of Rp1, and each pricemovement should be no more than Rp20;

• for shares with previous price of at least Rp500 but less than Rp5,000, in multiples of Rp5and each price movement should be no more than Rp100;

• for shares with previous price of Rp5,000 or more, in multiples of Rp25 and each pricemovement should be no more than Rp500.

Auctioning takes place according to price priority and time priority. Price priority refers to the givingof priority to buying orders at a higher price or selling orders at a lower price. If buying or sellingorders are placed at the same price, priority is given to the buying or selling order placed first (i.e.time priority).

Negotiated market trading is carried out by (i) direct negotiation between members of the IDX or (ii)between clients through one member of the IDX or (iii) between a client and a member of the IDXor (iv) between a member of the IDX and the Indonesian Stock Clearing and Guarantee Company (PTKliring dan Penjaminan Efek Indonesia or KPEI). The negotiated market trading does not use roundlots.

Transactions on the IDX regular market are required to be settled no later than the third trading dayafter the transactions, except for cross trading. Transactions on the negotiated market are settled basedon agreement between the (selling) exchange member and the (buying) exchange member, and aresettled per transaction. Transactions on the IDX cash market are required to be settled on the tradingday of the transactions. In case of a default by an exchange member on settlement, cash market tradingtakes place, pursuant to which trading of securities by means of direct negotiation on cash and carryterms will be conducted. All cash market transactions must be reported to the IDX. An exchangemember is obliged to pay a transaction cost as regulated by the IDX; delay in payment of thetransaction cost will be subject to a fine of 1.0% of the outstanding amount for each day of delay. Forany violation of IDX rules, IDX may impose on an exchange member any of the following sanctions:(i) a fine up to Rp500 million; (ii) a written warning; (iii) a temporary suspension from tradingactivities; or (iv) a revocation of licence as an exchange member.

All transactions involving shares listed only on the IDX which use the services of exchange membersmust be conducted through the IDX. In order for a trade (except a block trade) to be made on the IDX,both the cash and securities settlement must be conducted through the facilities of the IDX. As at 30June 2008, short selling and margin trading by customers are allowed, subject to fulfilment of thefollowing requirements: (i) maintenance of a regular securities account that shows the transactionrecords of the trader, (ii) maintenance of a margin trading or short selling financing securities account,and (iii) an initial deposit of at least Rp200,000,000 into the margin trading or short selling financingsecurities account. Under the prevailing laws, only a member of the IDX that has obtained approvalfrom the IDX can enter into a short selling transaction or margin transaction. Furthermore, the IDXmay cancel a transaction if proof exists of fraud, market manipulation or the use of insiderinformation. The IDX may also suspend trading if there are indications of fraudulent transactions orartificial inflation of share prices, misleading information, use of insider information, counterfeitsecurities or securities blocked from trading, or any other material event. The IDX may suspendtrading of certain securities or suspend certain members of the stock exchange.

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Members of the IDX charge a brokerage fee for their services, based on agreement with their client,up to a maximum of 1.0% of the transaction value. When conducting share transactions on the IDX,exchange members are required to pay a transaction cost in the amount of 0.03% of the transactionvalue for transactions in the regular and cash markets, while for transactions in the negotiated markets,the transaction cost will be determined solely based on IDX policy. The transaction cost to be paid byexchange members is a minimum Rp20 million per month as contribution for the provision ofexchange’s facilities (which continues to apply for exchange members in suspension or with frozenmembership). The clients are responsible for paying a 10.0% value added tax on the amount ofbrokerage fees and transaction costs. Also, Indonesian sellers are required to pay a withholding tax of0.1% (plus an additional 0.5% for founder Shares applicable for all parties holding Shares of ourCompany prior to the initial listing) of the total transaction value. Additionally, stamp duty of Rp3,000is payable on any transaction with a value between Rp250,000 and Rp1,000,000 and stamp duty ofRp6,000 is payable on every transaction with a value of more than Rp1,000,000. See “Taxation” forfurther details.

Shareholders or their appointees may request at any time during working hours that the issuer, or thesecurities administration bureau appointed by the issuer of such shares, register their shares in theissuer’s registry of shareholders. Reporting of share ownership to OJK is mandatory for (i) membersof the board of directors, (ii) members of the board of commissioners, and (iii) shareholders whoseownership has reached 5.0% or more of issued and fully paid-up capital, at the latest ten days fromchanges of such ownership.

The following table sets forth certain information on the IDX for the years indicated.

As at or for the year ended 31 December

As at or for

the six

months ended

30 June

2012 2013 2014 2015

Equities data

Market capitalisation (trillion Rp) 4,127 4,219 5,228 5,000

Trading volume (million shares) 1,053,762 1,342,657 1,327,016 744,891

Average daily trading volume (million shares) 4,284 5,503 5,484 6,300

Trading value (billion Rp) 1,116,113 1,522,122 1,453,392 778,241

Average daily trading value (billion Rp) 4,537 6,238 6,006 6,327

Number of listed companies 459 483 506 513

Source: IDX Summary Statistics

IDX Auto Rejection Regulations

Pursuant to Stock Exchange Trading Regulation No. II-A, Attachment to the Decree of the Board ofDirectors of PT Bursa Efek Indonesia No.Kep-00399/BEI/11-2012 effective on 2 January 2013 (“IDXReg.II-A”) and Decision of IDX Board of Director No. Kep-00096/BEI/08-2015 effective on 25August 2015, the IDX securities trading system (“JATS”) will automatically reject a sale offer and/orpurchase demand for equity type securities if:

• the sale offer or purchase demand price is less than Rp50;

• the sale offer or purchase demand price is:

(i) more than 35% above or 10% below the Reference Price (as defined below) within therange of Rp50 to Rp200;

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(ii) more than 25% above or 10% below the Reference Price within the range of Rp200to Rp5,000; or

(iii) more than 20% above or 10% below the Reference Price over Rp5,000.

• the volume of the sale offer or purchase demand is more than 50,000 lots or 5% out of thetotal number of the company’s shares listed on the IDX (whichever is smaller).

The term “Reference Price” means: (a) the opening price (harga pembukaan) in the regular market (the“Opening Price”); (b) the closing price (harga penutupan) on the previous trading day, if the openingprice is not available (the “Previous Price”); or (c) the theoretical price as a result of a corporate action(harga teoritis hasil tindakan korporasi) for the shares if the company is conducting a corporateaction.

The above restrictions only apply to the regular market and cash market and not the negotiated marketof the IDX. After taking into account trading conditions, the IDX may amend the above provisionsupon a decision of the IDX board of directors with prior approval from the OJK. Such amendmentshall be announced by the IDX and shall be effective, at the earliest, after three trading days from suchannouncement.

Foreign Equity Ownership Restrictions

Direct investment by foreigners in the shares of a company is generally regulated by Law No. 25 of2007 on Capital Investment, and its implementing regulations under the rulings and policies of theBKPM, the regulatory authority for foreign investment. The restriction on foreign ownership of listedequity securities, which is regulated by the Minister of Finance’s Decree No. 1055/KMK.013/1989,was revoked by the Minister of Finance’s Decree No. 455/KMK.01/1997 dated 4 September 1997.Under BAPEPAM’s Letter No. S-2105/PM/97 dated 8 September 1997, Notice of Jakarta StockExchange No. Peng 1176/BEJ/1.1/1997 dated 9 September 1997 and Decision Letter of the Board ofDirectors of Bank Indonesia No. 32/50/KEP/DIR dated 14 May 1999, foreign customers are nowpermitted to purchase up to 100% of shares offered in a public offering and up to 100% of the publiclylisted shares of all Indonesian listed companies, except for certain industries such as broadcasting andtower telecommunications.

Offering, Listing and Reporting Regulations

OJK regulates and monitors securities issues which are publicly offered or listed in Indonesia. Initialsecurities offerings are generally conducted as underwritten public offers for sale by subscription.OJK regulates offering and allocation procedures.

Unless waived, companies are required to meet certain requirements in order to become listed on theIDX which are set out respectively in the Rule No. I-A attachment to the Decision of the Board ofDirectors of IDX No. Kep-00001/BEI/01-2014 dated 20 January 2014 regarding Amendment Rule No.I-A on Listing of Shares and Equity Type Securities other than Shares Issued by a Listed Company aspartially amended pursuant to the Decision of the Board of Directors of IDX No.Kep-00100/BEI/10/2014 dated 20 October 2014 regarding Rule No. I-A.1 on Listing of Shares andEquity Type Securities other than shares issued by company in the field of Mineral and Coal Mining(“IDX Listing Regulation”).

Listed companies are required to submit to OJK and the IDX, among other things, the followingdocuments:

• an annual report to be submitted not later than four months after the end of the financialyear of the company;

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• audited financial statements for the last three years consisting of:

i. an annual financial report audited by an accountant registered with OJK, to besubmitted not later than three months after the date of such report unless it has beensubmitted together with the annual report;

ii. any of the following mid-year reports: (a) a mid-year report (unaudited), to besubmitted not later than one month after the date of such report; (b) a mid-year reportwith limited review by an accountant registered with OJK, to be submitted not laterthan two months after the date of such report; or (c) a mid-year report audited by anaccountant registered with OJK containing a full opinion on the fairness of suchreport, to be submitted not later than three months after the date of such report; and

iii. quarterly reports, the preparation of which is required by the rules of the IDX, to besubmitted to the IDX not later than one month after the date of such report for anon-audited report, two months after the date of such report for a limited audit report,and three months after the date of such report for a fully audited report;

• material information that is important and relevant according to regulations, including anypress release or news, and which may affect the value of the security or an investmentdecision, such as a merger, acquisition, consolidation, stock split, distribution of a stockdividend, obtainment or loss of material contracts, change in management, replacement ofpublic accountant, replacement of trustee, material legal claims, and other importantinformation possibly affecting share prices on the exchange; such information must besubmitted to OJK and announced publicly no later than two working days after suchinformation is revealed;

• a copy of any amendment to the company’s articles of association;

• the purpose of the utilisation of net proceeds from the initial public offering;

• notice of any change in the composition of the company’s board of directors or board ofcommissioners;

• report on shareholding and any change in shareholding which applies only to a shareholderthat owns 5% or more of the paid-up capital of the company;

• report on shareholding and any change in shareholding of the director or commissioner ofa public company in such public company;

• notice on appointment and replacement of corporate secretary; and

• notice of any material deviation from projections published by such companies.

Based on Circular Letter of the Chairman of BAPEPAM-LK No. SE-01/BL/2007, a company thatconsolidates its subsidiaries into its financial statements and who wishes to submit a registration toOJK in relation to a public offering or rights issue is required to submit the following documents:

• the consolidated financial statements of the company;

• individual/stand-alone, unconsolidated financial statements of the company; and

• individual/stand alone, unconsolidated financial statements for each subsidiary whosefinancial statements are consolidated into the financial statements of the company.

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In addition, the annual financial statements submitted to OJK for any subsidiary of a listed companymust be audited by a public accountant if the subsidiary in question fulfils any of the followingrequirements:

• such subsidiary is a public company;

• such subsidiary is engaged in a line of business related to the generation of public funds;

• such subsidiary issues an acknowledgement of indebtedness to the public;

• such subsidiary has assets equal to or greater than Rp50.0 billion;

• such subsidiary is a state enterprise; or

• such subsidiary is otherwise required by law.

Insider trading, fraud and market manipulation of securities are prohibited under Indonesian capitalmarkets laws. In such circumstances, a transaction may be cancelled or suspended by the IDX or OJKmay suspend or revoke the licence of the capital market supporting institution and supportingprofessionals involved. A party engaging in: (i) misleading conduct, fraud or falsification inconnection with the sale of securities; (ii) other actions to mislead the public regarding tradingactivities, market conditions or price; or (iii) insider trading is liable for the loss incurred and mayface a fine of up to Rp15 billion and imprisonment of up to ten years.

Scripless Trading

On 23 December 1997, a private limited company, the Indonesian Central Securities Depositary, orKSEI, was established to serve as the central securities clearing house. On 11 November 1998, KSEIobtained a licence from BAPEPAM to act as an approved central securities depositary and settlementinstitution. The shareholders of KSEI are currently comprised of 26 securities firms, holding 31.5%of KSEI’s shares, nine custodian banks, holding 36.0% of KSEI’s shares, three Share Registrars (BiroAdministrasi Efek), holding 3.0% of KSEI’s shares, the IDX and KPEI holding 29.5% of KSEI’sshares. In 2000, KSEI introduced the Central Depository and Book Entry Settlement System(“C-Best”), a computerised system for the registration and settlement of securities. For moreinformation, see “—KSEI” below.

In 2000, BAPEPAM implemented regulations to provide for a scripless trading system. Under thescripless system, a member broker, sub-broker or local custodian (“KSEI Participant”) may depositwith KSEI certificates evidencing ownership of securities in an account kept for such purpose, makingKSEI the registered holder of those securities. After acceptance, KSEI will hold such securities onbehalf of the KSEI Participant or the clients of the KSEI Participant, and through this system investorsin securities will become beneficial owners of the securities rather than direct owners. Thus, toestablish ownership, each holder of an account for deposit, withdrawal and/or transfer of securities(“KSEI Account Holder”) is obliged to maintain a list of the owners of securities deposited with it.Sales and purchases of securities are settled on the relevant securities deposit account via a computersystem. At the end of each trading day, KSEI delivers a statement showing the balance of securitiesheld for each participant.

A company that intends to register its securities with KSEI enters into a standard registrationagreement with KSEI. Subsequently, KSEI Account Holders or KSEI Participants must issueconfirmations for the benefit of KSEI for the entire value of the securities deposited with KSEI.

Securities registered with KSEI are recorded and administered electronically in securities accountsopened with KSEI (“KSEI Securities Accounts”) and KSEI Account Holders administer deposits,withdrawals and transfers of securities through their KSEI Securities Accounts. Parties that areeligible to become KSEI Account Holders are (i) securities companies, (ii) custodian banks and (iii)

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other parties determined by the prevailing capital market laws and regulations. In addition, anyinstitution becoming a KSEI Participant is required to open at least one securities account with KSEI.Each KSEI Account Holder who maintains customers’ securities and funds must also opensub-accounts for the deposit of securities and funds on behalf of their customers.

In accordance with the KSEI rules on Central Depository Services, C-Best is the central computerisedsystem for depository services and the settlement of securities transactions by book entry settlement.C-Best is provided by KSEI to KSEI Account Holders. Sales, purchases and conveyances of securitiesare settled through the C-Best system by setting off the relevant securities in the appropriate KSEISecurities Accounts. At the end of each trading day, KSEI delivers, through the C-Best system, astatement to each KSEI Account Holder showing the balance of securities held by that KSEI AccountHolder.

Pursuant to a Circular Letter issued by BAPEPAM-LK dated 23 November 2001, listed companiesmust register their shares in a central depository prior to 30 June 2002. On 14 June 2012,BAPEPAM-LK (now OJK) issued BAPEPAM-LK Rule III.C.7, Attachment to the Decree of Chairmanof BAPEPAM-LK No. Kep-326/BL/2012, which requires each KSEI Participant holding securities onbehalf of a client to:

• establish a securities sub-account on behalf of each client and record each client’s securitiesaccount in such sub-account;

• ensure that the balance in the customer’s security account in the KSEI Participant’s booksis always equivalent with the balance in the sub-account with KSEI;

• ensure that the identity of each client is properly recorded by the KSEI Participant; and

• ensure that the securities sub-account balance of each client is and remains correct.

Transfers of Shares

Transfers of listed shares on the IDX are governed by the Company Law and IDX rules. Under theCompany Law, as a general matter, ownership of shares is based on the registration of ownership inthe relevant company’s share register. To be valid against the issuing company, a request for an entryof the transfer into a share registry must be received by the company. To be valid against a third party,the entry of the transfer must actually be made into the share register.

Transfer of scripless shares are made by way of appropriate instructions to the relevant brokers,sub-brokers or custodians with whom the transferor and the transferee involved maintain securitiesaccounts in accordance with the individual arrangements with such brokers, sub-brokers or custodians.Upon receipt of such instructions, the relevant brokers, sub-brokers or custodians will, in accordancewith such arrangements, effect the relevant changes in the register they are required to maintain forrights and entitlements purposes.

Effective as at 30 June 2002, only shares held through KSEI (and which have not been pledged orforeclosed upon based on a court order, or seized for the purpose of criminal proceedings) may betraded on the IDX.

Securities transaction settlement services are part of the central depository services provided for thefulfilment of the rights and obligations as the result of stock exchange transactions or over-the-countertransactions by means of the transfer of securities and or funds between securities accounts. Thesettlement of stock exchange transactions is performed by KSEI based on transfer instructionsreceived from both a selling Clearing Member (defined as a member of a stock exchange registered

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as the KSEI Clearing Member) and a buying Clearing Member. Alter- natively, KSEI may settleover-the-counter transactions based on transfer instructions from a selling KSEI Account Holder andacceptance from a buying KSEI Account Holder and the availability of sufficient securities in thesub-account.

Over-the-counter transfer instructions must also state whether the transaction requires a payment ornot. When a transfer of securities and/or funds is completed and settled, KSEI submits a report toKPEI or the Clearing Member on the settlement of a stock exchange transaction or provides aconfirmation to the relevant KSEI Account Holder for an over-the-counter transaction.

Under BAPEPAM-LK Rule No. IX.H.1, Attachment to the Decree of Chairman of Capital MarketSupervisory Board and Financial Institution No. KEP-264/BL/2011 dated 31 May 2011 on Acquisitionof Publicly Listed Companies (“BAPEPAM-LK Rule No. IX.H.1”), a transfer of more than 50% of theshares of a public company or acquisition of direct or indirect control of the management or policyof a public company will be deemed an acquisition of a public company and thus trigger a mandatorytender offer by the new controlling shareholder. The new controlling shareholder will have to conducta tender offer for all the other shares in the public company, except for: (i) shares owned byshareholders which conduct the acquisition in conjunction with the new controlling shareholders, (ii)shares owned by other parties which received an offer on the same terms and conditions with the newcontrolling shareholder, (iii) shares owned by other parties which are conducting a tender offer at thesame time on the same public company’s shares, (iv) shares owned by the principal shareholders, and(v) shares owned by the other controlling shareholders in the public company. If the mandatory tenderoffer results in the new controlling shareholder holding more than 80% of the total paid-up capital inthe public company, the new controlling shareholder must transfer a certain amount of the shares tothe public so that 20% of the total paid-up shares in the public company is owned by the public,comprising more than 300 parties within two years from the completion of the tender offer. If theacquisition results in the new controlling shareholder obtaining more than 80% of the total paid-upcapital in the public company, the new controlling shareholder will have to transfer the shares to thepublic equal to the percentage of shares obtained in the mandatory tender offer, at a minimum, andthe shares must be owned by at least 300 parties within two years after the completion of themandatory tender offer.

KSEI

KSEI is a self-regulating organisation and is licenced and regulated by OJK. Under KSEI’s rules,securities companies or custodian banks fulfilling certain criteria and authorised by OJK may becomeKSEI Participants, the principal shareholders of KSEI are large custodian banks, broker, dealers, shareregistrars (Biro Administrasi Efek), IDX and KSEI. In the scripless system, the role of KSEI is to settlethe transfer and receipt of securities and to act as the central securities depository. KSEI’s role is toconduct fund settlement.

KSEI is managed by a Board of Directors and supervised by a Board of Commissioners who aresubject to the provisions of the Company Law. KSEI is also a member of several internationalassociations that are related to securities depositories, including the Association of NationalNumbering Agency (“ANNA”), the International Society of Securities Administrators (“ISSA”), theSociety for Worldwide Interbank Financial Telecommunication (“SWIFT”) and Asia Pacific CentralSecurities Depositories Group (“ACG”).

OJK sets standards for the internal controls of KSEI. These standards call for daily reconciliation ofaccount balances between KSEI and the issuers whose securities are held in the name of KSEI. Thisdaily reconciliation is required to be verified continuously by the head of the audit unit of KSEI whomust report this verification to the Internal Control Committee of KSEI, the Board of Directors ofKSEI and OJK. Each KSEI Participant has the right to send auditors to KSEI to verify thereconciliation of its accounts with those of KSEI and the right to send auditors to verify the registryof the securities on the books of the issuer.

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The internal control systems of KSEI are required to be audited annually by an independent auditorwith international experience and reputation and to include a review of the protections against fraud,embezzlement, natural disruptions and electronic damage. This report is to be sent to all KSEIshareholders along with the annual report.

The regulations call for a number of fundamental security measures to ensure the integrity of KSEI:

• access to data processing functions, record-keeping functions and customer account serviceareas at KSEI must be restricted;

• KSEI must have a primary computer and back-up computer at different locations that allowcontinued processing within two hours of a breakdown of the primary computer;

• duplicate electronic records must be maintained in repositories that are at least 30kilometres away from each other;

• software development and maintenance are required to be segregated from data processingoperations; and

• a special security division of KSEI’s own funds is required to be segregated from dataprocessing operations; all debits and credits to securities accounts must be based oninstructions of account holders and controlled by a division that is separate from the dataprocessing division.

In addition to the oversight of internal controls and specific regulations regarding recovery andsecurity, the legal basis for securities accounts permits recovery of an investor’s assets even in theevent of destruction of all records of KSEI. This is done based on investor’s confirmations andstatements and records of the issuer, all of which are maintained independently from the records ofKSEI. With daily reconciliation of key records, strong internal control supervision by major banks,special security measures and legal safeguard, recovery is possible if there is a catastrophicoccurrence.

IDX Listing, Relisting, Delisting and Corporate Governance Rules

The IDX listing rules for equity securities and regulations are aimed at enhancing good corporategovernance and clarifying listing, relisting and delisting criteria, sanctions for violation of stockexchange rules and e-reporting and monitoring.

The listing rules also introduced the two-board system, comprising the Main Board and theDevelopment Board. The Main Board serves as the flag-carrier of the IDX and is intended forcompanies fulfilling regional listing standards relating to size, track record and net tangible assets.The Development Board allows both large and small companies with prospects but who do not qualifyto list on the Main Board yet, as well as companies in the recovery phase, to be listed on the IDX.

Under the IDX Listing Regulation, all companies listed on the IDX must satisfy the following generallisting requirements (“General Listing Requirements”):

• be a legal entity formed as a limited liability company (Perseroan Terbatas, or PT);

• have a registration statement, which has been declared effective by OJK;

• have at least one independent director;

• have an audit committee;

• have an internal audit unit;

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• have appointed a corporate secretary;

• a nominal value of shares of at least Rp100;

• the members of the board of directors and board of commissioners of the company havegood reputations, evidenced by:

(1) never having been convicted of a crime in the last ten years;

(2) never having been declared bankrupt;

(3) never having pleaded guilty for causing the company that the individual managed ormanages to be declared bankrupt;

(4) not having been disrespectfully discharged from a position within the last five years;and

(5) not being under a guardianship,

• if the company is a subsidiary or a holding company of another listed company:

(1) have obtained an appraisal/evaluation by an independent party, stating that upontermination of an affiliation between the company and the listed company, eachcompany can continue to sufficiently perform its operational activities; and

(2) show that either:

(i) the pro forma financial statement of the company, independent of and withoutconsolidation with the financial statement of the listed company, or

(ii) the pro forma financial statement of the listed company, independent of andwithout consolidation with the financial statement of the company,

can satisfy the listing requirement.

• have appointed independent commissioners, comprising at least 30% of the total number ofmembers of the board of commissioners; and

• have full underwriting commitment from the Joint Domestic Lead Underwriters for theinitial public offering.

Listing on Main Board and Development Board

Under the listing rules, a company is deemed qualified to undertake an initial listing on the MainBoard if it fulfils certain requirements, including:

• satisfying the General Listing Requirements;

• net tangible assets of at least Rp100 billion based on the latest audited financial reports ofthe company;

• audited financial reports covering at least the last three years and unqualified audit opinionsfrom the auditor covering the financial reports for the last two years and the last auditedinterim report;

• operating in the same core business for the past three consecutive years;

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• at least 1,000 shareholders, each holding a securities account with the stock exchangemembers;

• booked profit at least in the last financial year; and

• at least 300 million shares owned by minority shareholders immediately after the initiallisting with the following requirements:

� representing 20% of the total paid-in capital for the company having equity value of,prior to the public offering, less than Rp500 billion;

� representing 15% of the total paid-in capital for the company having equity value in,prior to the public offering, the range between Rp500 billion and Rp2 trillion; and

� representing 10% of the total paid-in capital for the company having equity value of,prior to the public offering, more than Rp2 trillion.

Under the listing rules, a company is deemed qualified to undertake an initial listing on theDevelopment Board if it fulfils certain requirements, including:

• satisfying the General Listing Requirements;

• net tangible assets of at least Rp5 billion;

• having operated for at least the past 12 consecutive months in the same core area ofbusiness activity;

• unqualified audit opinions from the auditor covering the financial report for the last 12months and the last audited interim report (if any);

• for a company which has experienced losses or has not booked any profit or has beenoperating for less than two years, (1) based on its financial forecast to be announced on thestock exchange at the latest at the end of the second financial year as at the listing date ithas obtained operational and net profits; or (2) based on its financial forecast by no laterthan at the end of the company’s sixth financial year as at the listing date, it has obtainedoperational and net profits, especially if the proposed listed company is a company that bynature of its business will likely require a longer period of time to reach a break-even point(such as infrastructure, plantation, forestry concession right (“HPH”), or industrial forestconcession right (“HTI”) or other business related to public service);

• at least 500 shareholders, each holding a securities account with the stock exchangemembers;

• shares owned by minority shareholders immediately after the initial listing within five stockexchange days before the listing application which are at least 150 million shares, with thefollowing requirements:

� representing 20% of the total paid-in capital for the company having equity value of,prior to the public offering, less than Rp500 billion;

� representing 15% of the total paid-in capital for the company having equity value in,prior to the public offering, the range between Rp500 billion and Rp2 trillion; and

� representing 10% of the total paid-in capital for the company having equity value of,prior to the public offering, more than Rp2 trillion.

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The IDX listing rules allow a company listed on the Development Board to be promoted to the MainBoard if it fulfils the requirement for listing on the Main Board.

Delisting

A company can be delisted voluntarily or involuntarily by the IDX. A company can be delisted if itfulfils one of the following conditions, (i) suffers certain conditions which adversely affect the goingconcern of the company, financially or legally, or adversely affect the continuing status of thecompany as a publicly listed company and the company has not shown any sufficient remedial actions;or (ii) its shares are suspended from the regular market and the cash market and have only been tradedon the negotiation market at least for the last 24 months.

Buy Back

Pursuant to BAPEPAM-LK Regulation No. XI.B.2 attached to Decision of BAPEPAM-LK No.KEP-105/BL/2010 on Buy Back of Shares Issued by Issuers or Public Companies dated 13 April 2010,an issuer or a public company may repurchase its shares in accordance with Articles 37 and 39Company Law, without breaching Articles 91, 92, 95 and 96 Indonesian Capital Market Law, or tosatisfy Article 62 Company Law. The repurchase of shares shall be completed no later than 18 monthsafter the date of approval of the general meeting of shareholders. The issuer or the public companymay hold the repurchased shares for three years since the completion of the shares repurchase, andshall transfer such shares within a period of two years, which can be extended by one year.

Furthermore, an issuer or a public company may buy its shares back under significantly fluctuatingmarket conditions. Pursuant to OJK Regulation No. 2/POJK.04/2013 concerning Buy Back of SharesIssued by Issuers or Public Companies in Significantly Fluctuating Market Condition, dated 23 August2013, a significantly fluctuating market condition is specified by (i) 15% or more reduction of thecomposite stock price index for three trading days in a row, or (ii) other conditions stipulated by OJK.Under those conditions, the issuer or public company may repurchase its shares up to 20% of thepaid-up capital without approval of the general meeting of shareholders.

Independent Commissioner and Audit Committee

In addition to the IDX Listing Regulation, based on Decision of the Chairman of BAPEPAM-LK No.Kep-643/BL/2012 on Regulation No. IX.I.5 concerning the Formation and Work ImplementationGuidance of the Audit Committee, issued on 24 September 2004 and renewed on 7 December 2012(“BAPEPAM-LK Regulation No. IX.I.5”) and OJK Regulation No. 33/POJK 04/2014 on Board ofDirectors and Board of Commissioners of Issuer and Public company dated 8 December 2014, anindependent commissioner in a listed company must:

• come from outside the listed company;

• not own any shares of the listed company directly or indirectly;

• not have an affiliated relationship with the listed company, commissioners, directors orcontrolling or substantial shareholders of the listed company;

• not have any business relationship which is directly or indirectly related to the listedcompany’s business activity; and

• not be an employee or a person who has any authority or responsibility to plan, lead, controlor supervise the activities of the listed company within the six months prior to itsappointment as an independent commissioner.

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The audit committee must be comprised of at least three members, one of whom must be anindependent commissioner of the listed company who will serve as chairman of the audit committee.The other members must also be independent individuals, at least one of whom must be an expert inthe field of accounting and/or finance.

Pursuant to the BAPEPAM-LK Regulation No. IX.I.5 and Circular Letter issued by IDX in 2001, thefollowing individuals are prohibited from becoming members of the audit committees of a listedcompany:

• any insider individual of the public accountant, legal counsel, public appraiser or otherparty that has given assurance, non-assurance, appraisal, and/or other consultation servicesto the listed company in the last six months before his appointment as a member of the auditcommittee;

• any party that has had the authority and responsibility to plan, direct, control or supervisethe activity of the listed company in the last six months before his appointment as a memberof the audit committee, except an independent commissioner;

• any party that owns shares, either directly or indirectly, in the listed company. In the eventthat a member of the audit committee acquires shares directly or indirectly as a result ofa legal action, then within a period of not more than six months subsequent to suchacquisition, the said shares must be disposed of;

• any party that has a family relationship, either by marriage or blood, up to second degreevertically or horizontally with any commissioner, director or principal shareholder of thelisted company; and/or

• any party that has a business relationship which is directly or indirectly related to the listedcompany’s business activity.

In addition to the above, each member of the Audit Committee must:

• have high integrity, ability, knowledge and adequate experience (including any relevanteducational qualifications) and be able to communicate effectively;

• comply with the code of ethics of the audit committee adopted by the listed company;

• be willing to continuously improve its competency through education and training;

• be capable of reading and understanding financial reports, and at least one of the memberof the Audit Committee must have an educational qualification in accountancy or finance;and

• have adequate knowledge of all capital markets and other relevant regulations.

Independent Director

Pursuant to IDX Listing Regulation, an independent director in a listed company:

• must not have had an affiliated relationship with the listed company’s controllingshareholders for at least six months before his appointment as a non-affiliated director inthe listed company;

• must not have an affiliated relationship with any commissioner or other director of thelisted company;

• must not act as a director of another company; and

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• must not be an insider at a capital market supporting institution or professional of whichits service was used by the listed company for six months before his appointment as adirector of the listed company.

Corporate Secretary

As stipulated in OJK Regulation No. 35/POJK 04/2014 on Corporate Secretary of Issuer or PublicCompany and IDX Listing Regulation No. I-A, a listed company is required to have a corporatesecretary.

The function of a corporate secretary is performed by one of the directors of the listed company, oran official of the listed company designated to carry out such function. The corporate secretary actsas a liaison or contact person between the listed company, Government authorities (including OJK)and the public. The corporate secretary must have access to material and relevant information relatingto the listed company and must be familiar with all statutory regulations relating to capital markets,particularly on disclosure matters.

Nomination and Remuneration Committee

Under OJK Regulation No. 34/POJK.04/2014 on Nomination and Remuneration Committee of theIssuer or Public Company dated 8 December 2014, an issuer or a public company is required to havethe function of nomination and remuneration conducted by the board of commissioners. The board ofcommissioners may form a nomination and remuneration committee consisting of, at least, threemembers, with an independent commissioner acting as the head of the committee, while the othermembers may be coming from (i) the board of commissioners, (ii) outside the relevant issuer or publiccompany, or (iii) the managerial positions under the board of directors in charge of human resources.In addition, a member of the board of directors is not allowed to be appointed as a member of thenomination and remuneration committee. The committee is appointed and dismissed by the board ofcommissioners’ decision.

Further, the nomination and remuneration committee is responsible for:

• providing recommendations to the board of commissioners concerning (i) the compositionof the board of directors and/or board of commissioners, (ii) policies and criteria requiredin the nomination process, (iii) policies on the performance evaluation for the board ofdirectors and/or the board of commissioners, (iv) remuneration structure, (v) remunerationprovisions, and (vi) the amount of the remuneration;

• assisting the board of commissioners in conducting evaluations to the performance of theboard of directors and/or the board of commissioners pursuant to evaluation standards;

• providing recommendations to the board of commissioners regarding skill developmentprogram for the board of directors and/or board of commissioners;

• proposing the qualified candidates for members of the board of directors and/or board ofcommissioners to be submitted to the general meeting of shareholders;

• providing recommendations to the board of commissioners on remuneration; and

• assisting the board of commissioners in conducting evaluations on the performance of theboard of directors and/or the board of commissioners pursuant to the remuneration receivedby the board of directors and/or the board of commissioners.

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TAXATION

The following summary is based on tax laws of Indonesia as in effect on the date of this OfferingCircular, and is subject to changes in Indonesian law, including changes that could have retroactiveeffect. The following summary does not take into account or discuss the tax laws of any countries otherthan Indonesia. Prospective investors in all jurisdictions are advised to consult their own tax advisorsas Indonesian or other tax consequence of the purchase, ownership and disposition of the Shares.

Indonesian Taxation

The following is a summary of the principal Indonesian tax consequences of the ownership anddisposition of our Shares for a non-resident individual or non-resident entity (a “Non-IndonesianHolder”) that holds shares in an Indonesian company. As used in the preceding sentence, a“non-resident individual” is a foreign national who does not reside in Indonesia or is not physicallypresent in Indonesia for more than 183 days during any 12-month period, during which period suchnon-resident individual receives income in respect of the ownership or disposition of shares, and a“non-resident entity” is a corporation or non-corporate body that is established under the laws of ajurisdiction other than Indonesia, is not domiciled in Indonesia and does not have a fixed place ofbusiness or permanent establishment in Indonesia during an Indonesian tax year in which suchNon-Indonesian entity receives income in respect of the ownership or disposition of shares.

Taxation of Dividends

Dividends declared by our Company out of retained earnings and distributed to a Non-IndonesianHolder in respect of Shares are subject to Indonesian withholding tax, currently at the rate of 20.0%,on the amount of the distribution (in the case of cash dividends) or on the shareholders’ proportionalshare of the value of the distribution (normally par value in the case of stock dividends). A lower rateprovided under certain double taxation treaties may be applicable, provided that, among other things,the recipient is the beneficial owner of the dividend and is a resident of a treaty country.

Tax Treaties

Indonesia has concluded double taxation treaties with a number of countries including Australia,Belgium, Canada, France, Germany, Japan, Luxembourg, The Netherlands, Singapore, Sweden,Switzerland, the United Kingdom and the United States of America.

Where a tax treaty exists, provided the eligibility requirements of that treaty are satisfied, there is nomisuse of the tax treaty and the administrative requirements under the domestic tax regulations aremet, a reduced rate of withholding tax may be applicable.

Taxation on the Disposition of Shares

Pursuant to Government regulation No. 41 of 1994 regarding Withholding Tax on Income from ShareTrading Transactions on the Stock Exchange dated 23 December 1994 and its amendments inGovernment Regulation No. 14 of 1997 dated 29 May 1997 later confirmed by Article 4 (2) point cLaw No. 36 year 2008 about Income Tax, the sale or transfer of shares that are listed on an Indonesianstock exchange is subject to final withholding tax of 0.1% of the gross amount of the transaction valueand should be withheld by the broker handling the transaction. Currently, the tax regulations for listedshares do not contain any provision in respect of treaty protections. In practice, the 0.1% finalwithholding tax is applied irrespective of the fact that there may be treaty exemptions. Indonesian taxauthorities have a general rule regarding refunds, which may be used in case of an applicable treatyexemption.

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Stamp Duty

According to Law No. 13 year 1985 about Stamp Duty, and Government Regulation No. 24 of 2000,

a document that effects a sale of Indonesian shares is subject to stamp duty. Currently, the nominal

amount of the Indonesian stamp duty is Rp6,000 for transactions having a value greater than

Rp1,000,000 and Rp3,000 for transactions having a value of greater than Rp250,000. Generally, the

stamp duty is due at the time the document is executed.

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PLAN OF DISTRIBUTION

The Global Offering

We and the Selling Shareholder are offering 285,714,400 Offer Shares, comprising 228,571,500Primary Shares to be offered by us in the Primary Offering and 57,142,900 Placement Shares to beoffered by the Selling Shareholder in the Private Placement, in each case, at the Offering Price. TheGlobal Offering consists of the concurrent Primary Offering and Private Placement. The closing of theInternational Offering is conditional upon the closing of the Indonesian Offering. The closing of thePrivate Placement is conditional upon the closing of the Primary Offering and the listing of our Shareson the IDX.

The Primary Shares may be reallocated between the International Offering and the IndonesianOffering. The Indonesian Offering will be conducted by PT Deutsche Securities Indonesia, PT CreditSuisse Securities Indonesia and PT Indo Premier Securities as the Joint Domestic Lead Underwriters.PT Indo Premier Securities will act as settlement agent.

The International Offering is being made outside the United States in reliance on Regulation S byDeutsche Bank AG, Hong Kong Branch and Credit Suisse (Singapore) Limited, as Joint GlobalCoordinators, Joint Bookrunners and Joint International Selling Agents.

The International Offering

In connection with the International Offering, the Joint Domestic Lead Underwriters and the JointInternational Selling Agents have entered into a selling agency and managers’ agreement dated 24November 2015 (the “Selling Agency Agreement”), which provides for the coordination of theiractivities.

In connection with the International Offering, we and the Selling Shareholder have entered into anagreement dated 24 November 2015 (the “International Coordination Agreement”), with the JointInternational Selling Agents which sets out the terms and conditions upon which the JointInternational Selling Agents will solicit eligible investors resident outside Indonesia to subscribe forthe Offer Shares in the Global Offering. The Offer Shares are being offered outside the United Statesby the Joint International Selling Agents in accordance with Regulation S under the Securities Act.Purchasers of the Offer Shares in the International Offering may be required to pay stamp taxes andother similar charges in accordance with the laws and practices of the country of purchase, in additionto the Offering Price.

If any of the Primary Shares are not subscribed for or purchased and paid for by subscribers pursuantto the International Offering, the Joint Domestic Lead Underwriters have agreed to subscribe for orpurchase and pay for these Primary Shares at the Offering Price.

The circumstances in which we and the Selling Shareholder or the Joint International Selling Agentscan terminate the Selling Agency Agreement or the International Coordination Agreement are limited.See “—Cancellation of the Primary Offering” below.

The Indonesian Offering

In connection with the Indonesian Offering, we have entered into the Deed of Underwriting AgreementNo. 22 dated 11 September 2015, as amended and restated by the Deed of Amendment I andRestatement of Underwriting Agreement No. 14 dated 12 October 2015 and further amended by theDeed of Amendment II and Restatement of Underwriting Agreement No. 93 dated 24 November 2015(the “Underwriting Agreement”), together with the Joint Domestic Lead Underwriters, which sets out

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the terms and conditions upon which the Joint Domestic Lead Underwriters will offer the Primary

Shares on behalf of us at the Offering Price. If any of the Primary Shares are not subscribed or

purchased or paid by subscribers pursuant to the Indonesian Offering, the Joint Domestic Lead

Underwriters have agreed to subscribe or purchase and pay for such Primary Shares at the Offering

Price.

No offer of Offer Shares is being made to citizens of Indonesia (wherever located) or residents of

Indonesia pursuant to this Offering Circular. The issue of Primary Shares to Indonesian citizens

(wherever located) and/or residents of Indonesia will be made pursuant to a prospectus filed with OJK.

The table below sets out the respective underwriting portions of the Joint International Selling Agents

and the Joint Domestic Lead Underwriters pursuant to the Global Offering.

Underwriting Portion

Number of

Primary

Shares Approx. (%)

Number of

Placement

Shares Approx. (%)

Joint International Selling Agents

Deutsche Bank AG, Hong Kong Branch 78,548,580 34.4% 31,771,500 55.6%

Credit Suisse (Singapore) Limited 62,880,030 27.5% 23,371,400 44.4%

Sub-total 141,428,610 61.9% 57,142,900 100.0%

Indonesian Underwriters

PT Deutsche Securities Indonesia, 8,727,620 3.8% — —

PT Credit Suisse Securities Indonesia 6,986,670 3.1% — —

PT Indo Premier Securities 71,428,600 31.3% — —

Sub-total 87,142,890 38.2% — —

Total 228,571,500 100.0% 57,142,900 100.0%

Fees and Expenses

As compensation to the Joint Domestic Lead Underwriters and the Joint International Selling Agents

for services performed in connection with the Primary Offering, we have agreed to pay (a) a gross

commission of 2.5% of the Offering Price and (b) a mandatory incentive fee of 0.5% of the Offering

Price, multiplied by the total Primary Shares. In addition, the Company may pay a discretionary

incentive fee of 0.5% of the Primary Offering proceeds to the Joint Domestic Lead Underwriters and

the International Selling Agents at a date and in a proportion to be determined by the Company in its

sole discretion. Investors in the Primary Offering who are subject to the fixed allotment system will

be required to pay a brokerage fee of 1.0% per Primary Share and may be required to pay stamp taxes

and other similar charges in accordance with applicable regulations.

As compensation to the Joint International Selling Agents for their placement of the Placement Shares

on behalf of the Selling Shareholder, the Selling Shareholder will pay or cause to be paid to the Joint

International Selling Agents (a) a gross commission of 2.5% of the Offering Price and (b) a mandatory

incentive fee of 0.5% of the Offering Price, multiplied by the total Placement Shares. In addition, the

Selling Shareholder may pay a discretionary incentive fee of 0.5% of the Private Placement proceeds

to the International Selling Agents at a date and in a proportion to be determined by the Selling

Shareholder in its sole discretion. Investors in the Private Placement will be required to pay a

brokerage fee of 1.0% per Placement Share and may be required to pay stamp taxes and other similar

charges in accordance with applicable regulations.

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We will reimburse the Joint International Selling Agents and the Joint Domestic Lead Underwriters for

certain costs, fees and expenses incurred in connection with or incidental to the Global Offering and

indemnify them against certain liabilities in connection with the offer and sale of the Primary Shares.

Important Dates

The following events have taken place or are expected to take place on or about the following dates

in connection with the Global Offering (subject to change, in particular depending on the timing of

the declaration by OJK on effectiveness of the registration statement):

Event Date

Effective date of OJK registration statement 1 December 2015

Commencement of offer period in Indonesian Offering 2 December 2015

End of offer period in Indonesian Offering 4 December 2015

Allotment of Primary Shares to successful applicants 8 December 2015

Payment due by investors in the International Offering 10 December 2015

Settlement Date for the Primary Offering 10 December 2015

Listing of Shares on the IDX 11 December 2015

Payment due by purchasers in the Private Placement 11 December 2015

Settlement Date for the Private Placement 11 December 2015

Registration with OJK

We submitted a registration statement to OJK on 11 September 2015. This registration statement is

expected to be declared effective by the Chairman of OJK on or about 1 December 2015, thereby

permitting us to proceed with the Indonesian Offering and the listing of the Shares.

Offering Period for the Indonesian Offering

The offering period for the Indonesian Offering will begin on 2 December 2015 and end on or about

4 December 2015 (the “Offering Period”).

We expect the Joint International Selling Agents and the Joint Domestic Lead Underwriters, to make

payment of the net proceeds to us on or about 10 December 2015 and listing of the our Shares on the

IDX to occur on or about 11 December 2015.

Application for Primary Shares

Each non-Indonesian citizen and non-Indonesian resident must properly complete and submit a share

subscription application form in order to be eligible to purchase the Primary Shares in the

International Offering. The Joint International Selling Agents will be responsible for ensuring

preparation of share subscription forms on behalf of foreign investors purchasing Primary Shares

through them in the International Offering. Share subscription applications and allocations in

connection with the Indonesian Offering are regulated by OJK regulations.

Share applications must be for a minimum amount of 100 Shares and multiples thereof. Each investor

may only submit one share application form. The Joint International Selling Agents and the Joint

Domestic Lead Underwriters are entitled to accept or refuse a share application in full or in part.

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Multiple share applications submitted using more than one share application form may either betreated as a single application for allotment purposes or treated, in full or in part, as invalidapplications at the sole discretion of the Joint International Selling Agents and the Joint DomesticLead Underwriters.

Full payment by non-Indonesian citizens and non-Indonesian residents for the number of PrimaryShares is expected to be made on or about 10 December 2015. Information as to wire transferinstructions will be made available by the Joint International Selling Agents or the Joint DomesticLead Underwriters to eligible investors upon request. All bank and transfer charges with respect tothese payments will be borne by the investors.

Allotment of Primary Shares

Fixed Allotment and Pooling

At the conclusion of the Offering Period, the allotment of the Primary Shares will be made by PT IndoPremier Securities, acting as the allotment manager (the “Allotment Manager”), using a combinedsystem of “fixed allotment” and “pooling” in accordance with applicable Indonesian regulations.Under this rule, the Allotment Manager may determine how to apportion the allotment of the PrimaryShares between the “fixed allotment” and “pooling” systems. The last date by which the AllotmentManager will determine the number of Primary Shares allotted for each applicant is expected to be onor about 8 December 2015.

The Joint International Selling Agents and the Joint Domestic Lead Underwriters have determined thatthe equivalent of 99% of the Primary Shares being offered will be subject to a fixed allotment system,subject to OJK’s approval. The allotment of the equivalent of 1% of the Primary Shares being offeredwill be by a system of pooling.

Allotment to Foreign Institutions

There is generally no limit on the purchase of Shares by foreign institutions. Allocation to foreigninstitutions will be on the same basis as to domestic institutions.

Delivery of Primary Shares

We expect that delivery of the Primary Shares will be made on or about 10 December 2015, which willbe the business day immediately following the expected date of final allotment of the Primary Sharesin the Global Offering. The Primary Shares may not be traded by the purchasers thereof prior to thelisting of the Primary Shares on the IDX.

Cancellation of the Primary Offering

Between the declaration of effectiveness of the Offering by OJK and the end of the offering period,the Indonesian Offering may only be terminated by an application made by the Company to OJK forits approval and only under the following limited circumstances:

• the Indonesian Composite Index is down more than 10% on three consecutive exchangedays on the IDX;

• a disaster, flood, earthquake, volcanic eruption, war, riots, fire or labour strike occurswhich may significantly affect our business; or

• any other event occurs which, in the opinion of OJK in accordance with its regulations, maysignificantly affect our business.

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Prior to the close of and during the Offering Period, we and the Joint International Selling Agentsretain the right to cancel the International Offering under certain circumstances pursuant to theInternational Coordination Agreement. The closing of the International Offering is conditional uponthe closing of the Indonesian Offering. In addition, the International Coordination Agreement may beterminated in certain circumstances.

Private Placement

In connection with the Private Placement, pursuant to the International Coordination Agreement, theSelling Shareholder has appointed the International Selling Agents, and Credit Suisse (Singapore)Limited, as one of the International Selling Agents, has agreed to purchase and/or procureinternational purchasers to purchase all the Placement Shares at the Offering Price.

Pursuant to the International Coordination Agreement, the Selling Shareholder will agree to indemnifythe International Selling Agents against certain liabilities in connection with the Private Placement,and to contribute to payments which the International Selling Agents may make in respect thereof. Inaddition, the Selling Shareholder has agreed to reimburse the International Selling Agents for certainexpenses and taxes in connection with the Private Placement.

The closing of the Private Placement is conditional upon the closing of the International Offering andthe listing of our Shares on the IDX. Assuming these conditions are satisfied, payment to the SellingShareholder for the Placement Shares is expected to take place on or about 11 December 2015 inimmediately available funds, and delivery of the Placement Shares will be made against paymenttherefor in electronic (scripless) form for their administration in KSEI effected through a crossing ofsuch Shares on the IDX on or about 11 December 2015. The International Selling Agents are entitledto terminate the International Coordination Agreement with respect to their obligations under theInternational Coordination Agreement under certain circumstances.

Lock-up Arrangements

Our Company has agreed that, without the prior written consent of the Joint International SellingAgents, our Company will not during the period of 12 months after the Effective Date, (A) offer,pledge, sell, accept subscription for issue, contract to sell, mortgage, charge, assign, sell any option,warrant or contract to purchase, purchase any option or contract to sell, grant any option, right orwarrant to subscribe for or purchase, lend, or otherwise transfer or dispose of or create encumbranceover, directly or indirectly, conditionally or unconditionally, or otherwise any of the Offer Shares orany interests therein or any other securities convertible into or exercisable or exchangeable for orwhich carry rights to subscribe or purchase any Offer Shares or any interests therein or file anyregistration statement with respect to any of the foregoing, (B) enter into any swap, hedge, derivativeor other transactions or other arrangement that transfers to another, in whole or in part, directly orindirectly, any of the economic consequences of ownership of the Offer Shares or any interest in theOffer Shares, (C) deposit any of the Offer Shares or any securities convertible into or exercisable orexchangeable for or which carry rights to subscribe or purchase any Offer Shares or any intereststherein in any depository receipt facilities or (D) publicly announce any intention to do any of theabove without the prior consent of each of Joint International Selling Agents, whether any suchtransaction described in clause (A), (B), (C) above is to be settled by delivery of Offer Shares or suchother securities, in cash or otherwise.

The Selling Shareholder has agreed that, without period written consent of the Joint InternationalSelling Agents, the Selling Shareholder will not during the period of six months after the EffectiveDate, (i) offer, pledge, sell, accept subscription for issue, contract to sell, mortgage, charge, assign,sell any option, warrant or contract to purchase, purchase any option or contract to sell, grant anyoption, right or warrant to subscribe for or purchase, lend, or otherwise transfer or dispose of or createencumbrance over, directly or beneficially owned (as such term is used in Rule 13d-3 of the U.S.Securities Exchange Act of 1934, as amended (the “Exchange Act”)), conditionally or unconditionally,or otherwise any of the Offer Shares or any interests therein or any other securities convertible into

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or exercisable or exchangeable for or which carry rights to subscribe or purchase any Offer Shares orany interests therein or file any registration statement with respect to any of the foregoing(collectively, the “Lock-Up Shares”); (ii) enter into any swap, hedge, derivative or other transactionsor other arrangement that transfers to another, in whole or in part, directly or indirectly, any of theeconomic consequences of ownership of the Lock-Up Shares or any interest in the Lock-Up Shares,(iii) deposit any of the Lock-Up Shares or any securities convertible into or exercisable orexchangeable for or which carry rights to subscribe or purchase any Lock-Up Shares or any intereststherein in any depository receipt facilities or (iv) publicly announce any intention to do any of theabove without the prior consent of each of Joint International Selling Agents whether any suchtransaction described in clause (i), (ii), (iii) above is to be settled by delivery of Lock-Up Shares orsuch other securities, in cash or otherwise.

Registration of the Offer Shares in KSEI

The Offer Shares have been registered into the depository facilities of KSEI in accordance with theAgreement for the Registration of Shares into Central Deposit entered into between KSEI and us onNo. SP-0017/PE/KSEI/D915 dated 1 September 2015.

By registering the Offer Shares in KSEI, we will not issue individual share certificates to successfullyapplicants, but any Offer Shares allotted to an investor will be distributed electronically. In order tosubmit an application for Offer Shares, each investor must hold a securities account with a securitiescompany or custodian bank which is a KSEI Participant to manage and administer any Shares allottedto it on the investor’s behalf.

At the end of the Offering Period, the Allotment Manager will undertake the allotment in the mannerset out above and report the allotment result to us. We will issue a KSEI a confirmation of registrationin our register of the Offer Shares, in the name of KSEI, of the number of Offer Shares allotted as partof the Global Offering. We will then instruct KSEI to credit the Joint International Selling Agents’ andthe Joint Domestic Lead Underwriters’ securities accounts with KSEI to receive and hold the Sharesallotted to the successful applicants. The Joint International Selling Agents and the Joint DomesticLead Underwriters will then instruct KSEI to distribute the number of Offer Shares allotted to asuccessful applicant from their securities accounts to the securities account of the relevant KSEIParticipant.

As evidence of the allotment of the Offer Shares, the Joint International Selling Agents and the JointDomestic Lead Underwriters will deliver allotment confirmation forms to the KSEI Participants whichmust then be passed on to the relevant investor, in exchange for a subscription receipt. Distributionof the allotment confirmation forms is expected to occur at the latest two working days after the lastday of the Offering Period. The Joint International Selling Agents will receive the allotmentconfirmation forms on behalf of investors purchasing Offer Shares through them in the InternationalOffering. Proof of ownership of the Offer Shares will be in the form of a written confirmation letterfrom KSEI or the KSEI Participant charged with managing the relevant investor’s Offer Shares.

The transfer of Shares held with KSEI will be by way of electronic book-entry between securitiesaccounts. The shareholder holding our Shares through KSEI will be entitled to withdraw its Sharesfrom the central deposit and receive a share certificate registered in its name. Only those Shares whichare registered in KSEI will be tradable on the IDX.

Article 60 of the Indonesian Law No. 8 of 1995 Concerning the Capital Market provides that all rightsattaching to Shares held with KSEI, including dividends and other ownership entitlements onsecurities, will be automatically distributed by KSEI to a beneficial shareholder holding Sharesthrough the depository system via its KSEI Participant who holds the Shares on such beneficialshareholder’s behalf. The KSEI Participant is obliged to open a sub-account in the name of therelevant customers and immediately pass such rights and entitlements onto its customers.

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Prior to any corporate action being taken by us, KSEI must provide details to us concerning the share

entitlements of all the beneficial shareholders on whose behalf Shares are held. A KSEI Participant is

obliged to notify a beneficial shareholder of the exercise of any pre-emptive rights, delivery of annual

reports and other notices by us as well as notices of general meetings of shareholders. The beneficial

shareholder, the KSEI Participant it holds the Shares through, or its legal representative has the right

to be present and vote at our general meetings of shareholders.

KSEI is obliged to give us details of the KSEI Participants holding Shares on behalf of beneficial

shareholders either:

• within one working day after the record date set for the purposes of assessing the identity

of the shareholders entitled to a dividend or other such rights attaching to Shares which

have been declared by us; or

• prior to the holding of our general meeting of shareholders; or

• at our request based on an instruction from an authorised person or agency to us in

accordance with the prevailing laws and regulations.

A beneficial shareholder that wishes to obtain a share certificate may withdraw its Shares from the

depository once all of those Shares have been distributed to the securities account of its KSEI

Participant. An application for the withdrawal of Shares must be forwarded to KSEI by the KSEI

Participant, on behalf of the beneficial shareholder, in a specified form. Collective share certificates

in the name of the shareholder will be issued to the beneficial shareholder for any Shares that are

withdrawn from KSEI no later than five business days from the receipt of the withdrawal request by

KSEI from the KSEI Participant, unless KSEI rejects the withdrawal of Shares based on written orders

from OJK or certain other authorised persons if required for the purposes of civil or criminal court

proceedings. Only Shares remaining in KSEI, and which have not been pledged, foreclosed upon based

on a court order or seized for the purposes of criminal court investigation, can be traded on the IDX.

Investors wishing to trade withdrawn Shares on the IDX must convert the withdrawn Shares back into

scripless Shares and deposit the Shares with the KSEI. The process of depositing withdrawn Shares

can take up to five business days.

No Public Trading Market for Our Shares

Before this Global Offering, there has been no public market for our Shares. The Offering Price was

determined through negotiations among us, the Joint Domestic Lead Underwriters and the Joint

International Selling Agents. In addition to prevailing market conditions, the factors considered in

determining the Offering Price were:

• the valuation multiples of publicly traded companies that the Joint Domestic Lead

Underwriters and the Joint International Selling Agents believe to be comparable to us;

• our financial information;

• the history of, and the prospects for, us and the industry in which we compete;

• an assessment of our management, our past and present operations, and the prospects for,

and timing of, our future revenues; and

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• the above factors in relation to market values and various valuation measures of othercompanies engaged in activities similar to ours.

An active trading market for our Shares may not develop. It is also possible that after the GlobalOffering, the Shares will not trade in the public market at or above the Offering Price.

Other Relationships

The Joint International Selling Agents and the Joint Domestic Lead Underwriters and certain of theirrespective affiliates have engaged in, and may in the future engage in, investment banking or financialconsulting activities and other commercial dealings in the ordinary course of business with us and theSelling Shareholder.

Selling Restrictions

General

No action has been taken or will be taken that would permit a public offering of the Offer Shares tooccur in any jurisdiction other than Indonesia, or the possession, circulation or distribution of thisOffering Circular or any other material relating to us or the Offer Shares in any jurisdiction whereaction for such purpose is required. Accordingly, the Offer Shares may not be offered or sold, directlyor indirectly, and neither this Offering Circular or any offering materials or advertisements inconnection with the Offer Shares may be distributed or published in or from any country orjurisdiction except under circumstances that will result in compliance with any applicable rules andregulations of any such country or jurisdiction. The Indonesian Offering will be made in compliancewith the applicable rules of OJK.

Dubai International Financial Centre

This Offering Circular relates to an Exempt Offer in accordance with the Offered Securities Rules ofthe Dubai Financial Services Authority. This Offering Circular is intended for distribution only toPersons of a type specified in those rules. It must not be delivered to, or relied on by, any other Person.

The Dubai Financial Services Authority has no responsibility for reviewing or verifying anydocuments in connection with Exempt Offers. The Dubai Financial Services Authority has notapproved this Offering Circular nor taken steps to verify the information set out in it, and has noresponsibility for it.

The Offer Shares to which this Offering Circular relates may be illiquid and/or subject to restrictionson their resale. Prospective purchasers of the Offer Shares offered should conduct their own duediligence on the Offer Shares.

If you do not understand the contents of this Offering Circular you should consult an authorisedfinancial adviser.

European Economic Area

In relation to each Member State of the European Economic Area that has implemented the ProspectusDirective (each a “Relevant Member State”), with effect from and including the date on which theProspectus Directive is implemented in that Relevant Member State (the “Relevant ImplementationDate”), no Offer Shares have been offered or will be offered to the public in that Relevant MemberState, except that offers of Offer Shares to the public may be made at any time with effect from andincluding the Relevant Implementation Date in a Relevant Member State in accordance with thefollowing exemptions under the Prospectus Directive, if they have been implemented in that RelevantMember State:

(a) to any legal entity which is a qualified investor as defined in the Prospectus Directive;

— 221 —

(b) to fewer than 100 or, if the Relevant Member State has implemented the relevant provisionof the 2010 PD Amending Directive, 150, natural or legal persons (other than qualifiedinvestors as defined in the Prospectus Directive) in such Relevant Member State, aspermitted under the Prospectus Directive, subject to obtaining the prior consent of the JointInternational Selling Agents for any such offer; or

(c) in any other circumstances falling within Article 3(2) of the Prospectus Directive,

provided that no such offer of Offer Shares shall result in a requirement for the publication by theCompany or any Joint International Selling Agent of a prospectus pursuant to Article 3 of theProspectus Directive.

For the purposes of this provision, the expression “an offer of the Offer Shares to the public” inrelation to any of the Offer Shares in any Relevant Member State means the communication in anyform and by any means of sufficient information on the terms of the Global Offering and the OfferShares to be offered so as to enable an investor to decide to purchase or subscribe for the Offer Shares,as the same may be varied in that Relevant Member State by any measure implementing the ProspectusDirective in that Relevant Member State, the expression “Prospectus Directive” means Directive2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extentimplemented in the Relevant Member State) and includes any relevant implementing measure in theRelevant Member State and the expression “2010 PD Amending Directive” means Directive2010/73/EU.

Each subscriber for or purchaser of Offer Shares described in this Offering Circular located within aRelevant Member State will be deemed to have represented, acknowledged and agreed that it is aqualified investor within the meaning of Article 2(1)(e) of the Prospectus Directive. In the case of anyOffer Shares being offered to a financial intermediary as that term is used in Article 3(2) of theProspectus Directive, such financial intermediary will also be deemed to have represented,acknowledged and agreed that any Offer Shares subscribed for or acquired by it have not beensubscribed for or acquired on a non-discretionary basis on behalf of, nor have they been subscribedfor or acquired with a view to their offer or resale to, persons in circumstances which may give riseto an offer of any Offer Shares to the public other than their offer or resale in a Relevant Member Stateto qualified investors as so defined in the Prospectus Directive or in circumstances in which the priorconsent of the Joint International Selling Agents has been obtained to each such proposed offer orresale.

Hong Kong

This Offering Circular has not been delivered for registration to the Registrar of Companies in HongKong and its contents have not been reviewed or authorized by any regulatory authority in Hong Kong.Accordingly: (i) the Offer Shares may not be offered or sold in Hong Kong by means of any documentother than to persons that are considered “professional investors” within the meaning of the Securitiesand Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and any rules made thereunder or inother circumstances which do not result in such document being a “prospectus” as defined in theCompanies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of HongKong) or which do not constitute an offer to the public within the meaning of the Companies (WindingUp and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) and as permittedunder the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong); and (ii) no personmay issue, or have in its possession for the purpose of issue, any invitation, advertisement or otherdocument relating to the Offer Shares whether in Hong Kong or elsewhere, which is directed at, or thecontents of which are likely to be accessed or read by, the public in Hong Kong (except if permittedto do so under the securities laws of Hong Kong) other than with respect to Offer Shares which areor are intended to be disposed of only to persons outside Hong Kong or only to “professionalinvestors” within the meaning of the Securities and Futures Ordinance (Cap. 571 of the Laws of HongKong) and any rules made thereunder.

— 222 —

WARNING: The content of this Offering Circular has not been reviewed by any regulatory authorityin Hong Kong. You are advised to exercise caution in relation to the offering. If you are in any doubtabout any content of this Offering Circular, you should obtain independent professional advice.

Indonesia

This Offering Circular does not constitute a prospectus for a public offering of securities underIndonesian capital market law and regulations. This Offering Circular may not be distributed or passedon within Indonesia or to persons who are citizens of Indonesia or entities of or residents in Indonesiain a manner which constitutes a public offering of securities under Indonesian capital market law andregulations.

Japan

The Offer Shares have not been and will not be registered in Japan pursuant to Article 4, Paragraph1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948, as amended, the“FIEL”) in reliance upon the exemption from the registration requirements since the offeringconstitutes the small number private placement as provided for in “ha” of Article 2, Paragraph 3, Item2 of the FIEL.

Korea

The Company is not making any representation with respect to the eligibility of any recipients of thisdocument to acquire the Offer Shares therein under the laws of Korea, including, but withoutlimitation, the Foreign Exchange Transaction Law and Regulations thereunder.

The Offer Shares have not been and will not be registered under the Financial Investment Services andCapital Markets Act of Korea (the “FSCMA”). Accordingly, the Offer Shares may not be offered, soldor delivered, or offered or sold to any person for re-offering or resale, directly or indirectly, in Koreaor to, or for the account or benefit of, any resident of Korea (as such term is defined under the ForeignExchange Transaction Law of Korea and its Enforcement Decree), for a period of one year from thedate of issuance of the Offer Shares, except (i) where relevant requirements are satisfied, the OfferShares may be offered, sold or delivered to or for the account or benefit of a Korean resident whichfalls within certain categories of qualified professional investors as specified in the FSCMA, itsEnforcement Decree and the Regulation on Securities Issuance and Disclosure promulgatedthereunder, or (ii) as otherwise permitted under applicable Korean laws and regulations.

Furthermore, the Offer Shares may not be re-sold to Korea residents unless the purchaser of the OfferShares complies with all applicable regulatory requirements (including, but not limited to,governmental approval requirements under the Foreign Exchange Transaction Law and its subordinatedecrees and regulations) in connection with purchase of the Offer Shares.

Malaysia

This Offering Circular has not been and will not be registered as a prospectus with the SecuritiesCommission Malaysia under the Malaysian Capital Markets and Services Act 2007 (as amended)(“CMSA”). No prospectus in relation to the Offer Shares has been registered with the SecuritiesCommission Malaysia under the CMSA or with any other regulatory body in Malaysia. Also, noapproval or authorization of the Securities Commission Malaysia has been granted for makingavailable, offering for subscription or purchase, or issuing an invitation to subscribe for or purchasethe Offer Shares in Malaysia. As such, the Offer Shares will only be made available and offered forsale to persons falling within any of paragraphs 10(a) to (k) of Schedule 5 of the CMSA, provided thatthe distribution of such Offer Shares is made by a holder of a Capital Markets Services Licence whocarries on the business of dealing in securities. This Offering Circular does not constitute and may notbe used for the purpose of a public offering or an issue, offer for subscription or purchase, invitationto subscribe for or purchase any securities requiring (a) the approval or authorization of SecuritiesCommission Malaysia and (b) the registration of a prospectus with the Securities CommissionMalaysia under the CMSA.

— 223 —

Singapore

This Offering Circular has not been and will not be registered as a prospectus with the MonetaryAuthority of Singapore. Accordingly, this Offering Circular and any other document or material inconnection with the offer or sale, or invitation for subscription or purchase, of the Offer Shares maynot be circulated or distributed, nor may the Offer Shares be offered or sold, or be made the subjectof an invitation for subscription or purchase, whether directly or indirectly, to any person in Singaporeother than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act(Chapter 289 of Singapore) (the “SFA”)) pursuant to Section 274 of the SFA, (ii) to a relevant person(as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any personpursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any otherapplicable provision of the SFA.

Where the Offer Shares are subscribed or purchased under Section 275 of the SFA by a relevant personwhich is:

(a) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA))the sole business of which is to hold investments and the entire share capital of which isowned by one or more individuals, each of whom is an accredited investor; or

(b) a trust (where the trustee is not an accredited investor) whose sole purpose is to holdinvestments and each beneficiary of the trust is an individual who is an accredited investor,

securities (as defined in Section 239(1) of the SFA) of that corporation or the beneficiaries’ rights andinterest (howsoever described) in that trust shall not be transferred within six months after thatcorporation or that trust has acquired the Offer Shares pursuant to an offer made under Section 275of the SFA except:

(1) to an institutional investor or to a relevant person defined in Section 275(2) of the SFA, orto any person arising from an offer referred to in Section 275(1A) or Section 276(4)(i)(B)of the SFA;

(2) where no consideration is or will be given for the transfer;

(3) where the transfer is by operation of law;

(4) as specified in Section 276(7) of the SFA; or

(5) as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Sharesand Debentures) Regulations 2005 of Singapore.

Switzerland

The Offer Shares may not be publicly offered in Switzerland and will not be listed on the SIX SwissExchange (“SIX”) or on any other stock exchange or regulated trading facility in Switzerland. Thisdocument has been prepared without regard to the disclosure standards for issuance prospectusesunder Article 652a or Article 1156 of the Swiss Code of Obligations or the disclosure standards forlisting prospectuses under Articles 27 ff. of the SIX Listing Manual or the listing rules of any otherstock exchange or regulated trading facility in Switzerland.

Neither this document nor any other offering or marketing material relating to the Offer Shares or theGlobal Offering may be publicly distributed or otherwise made publicly available in Switzerland.Neither this document nor any other offering or marketing material relating to the Offer Shares or theGlobal Offering or us have been or will be filed with or approved by any Swiss regulatory authority.In particular, this document will not be filed with, and the Global Offering will not be supervised by,

— 224 —

the Swiss Financial Market Supervisory Authority FINMA (“FINMA”), and the Global Offering hasnot been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes(“CISA”). The investor protection afforded to acquirers of interests in collective investment schemesunder the CISA does not extend to acquirers of the Offer Shares.

The Offer Shares are being offered in Switzerland by way of a private placement, i.e., to a smallnumber of selected investors only, without any public offer and only to investors who do not purchasethe Offer Shares with the intention to distribute them to the public. The investors will be individuallyapproached from time to time. This document, as well as any other offering or marketing materialrelating to the Offer Shares, is confidential and it is exclusively for the use of the individuallyaddressed investors in connection with the offer of the Offer Shares in Switzerland and it does notconstitute an offer to any other person. This document may only be used by those investors to whomit has been handed out in connection with the Global Offering described herein and may neitherdirectly nor indirectly be distributed or made available to other persons without our express consent.It may not be used in connection with any other offer and shall in particular not be copied and/ordistributed to the public in or from Switzerland.

United Arab Emirates (other than the Dubai International Financial Centre)

This document has not been, and is not intended to be, approved by the UAE Central Bank, the UAEMinistry of Economy, the Emirates Securities and Commodities Authority or any other authority in theUnited Arab Emirates (the “UAE”), or by the Dubai Financial Services Authority or any otherauthority in any of the free zones established and operating in the UAE (the “Free Zones”). It shouldnot be assumed that any of us, the Joint International Selling Agents or any placement agent (i) hasreceived any authorization or license from the UAE Central Bank or any other authorities in the UAEor any Free Zone to sell or market the Offer Shares therein; (ii) is a licensed broker, dealer orinvestment adviser under the laws applicable in the UAE or any Free Zone; or (iii) advises residentsof the UAE or any Free Zone as to the appropriateness of investing in or purchasing or sellingsecurities or other financial products.

This document does not constitute a public offer of securities in the UAE under the UAE CommercialCompanies Law (Federal Law No. 8 of 1984) (as amended) or otherwise. This document is beingdistributed to a limited number of selected institutional and other sophisticated investors in the UAE(a) upon their request and confirmation that they understand that the Offer Shares have not beenapproved or licensed by or registered with the UAE Central Bank or any other relevant licensingauthorities or governmental agencies in the UAE and may not be offered or sold directly or indirectlyto the public in the UAE; and (b) on the condition that this document will not be provided to anyperson other than the original recipient, is not for general circulation in the UAE and may not bereproduced or used for any other purpose. The information contained in this document is not intendedto lead to the sale of any securities or the consummation of any agreement of any nature within theterritory of the UAE.

United Kingdom

Each Joint International Selling Agent has represented and agreed that:

(a) it has only communicated or caused to be communicated and will only communicate or cause tobe communicated an invitation or inducement to engage in investment activity (within themeaning of Section 21 of the Financial Services and Markets Act 2000 (the “FSMA”)) receivedby it in connection with the issue or sale of the Offer Shares in circumstances in which Section21(1) of the FSMA does not apply to the Company; and

(b) it has complied and will comply with all applicable provisions of the FSMA with respect toanything done by it in relation to the Offer Shares in, from or otherwise involving the UnitedKingdom.

— 225 —

United States

The Offer Shares have not been and will not be registered under the U.S. Securities Act, and may not

be offered or sold within the United States except pursuant to an exemption from, or in a transaction

not subject to, the registration requirements of the U.S. Securities Act and applicable state securities

laws. Accordingly, the Offer Shares are being offered and sold only outside the United States in

accordance with Rule 903 of Regulation S.

Each purchaser of the Offer Shares offered hereby in reliance in Regulation S will be deemed to have

represented and agreed that it has received a copy of this document and such other information as it

deems necessary to make an investment decision and that:

• it is aware that the Offer Shares have not been and will not be registered under the U.S.

Securities Act or with any securities regulatory authority of any state or other jurisdiction

of the United States;

• it is purchasing the Offer Shares in an offshore transaction meeting the requirements of

Regulation S; and

• it will not offer, sell, pledge or transfer any Offer Shares, except in accordance with the

U.S. Securities Act and any applicable laws of any state of the United States and any other

jurisdiction.

In addition, until 40 days after the commencement of the Global Offering, any offer or sale of Offer

Shares within the United States by a dealer whether or not participating in the Global Offering may

violate the registration requirements of the U.S. Securities Act if such offer or sale is made otherwise

than in accordance with an exemption from registration under the U.S. Securities Act.

— 226 —

LEGAL MATTERS

Certain legal matters in connection with the Global Offering will be passed upon for us by Hiswara

Bunjamin & Tandjung with respect to matters of Indonesian law and Herbert Smith Freehills LLP with

respect to matters of United States federal securities law and for the Joint Global Coordinators and

Joint International Selling Agents by Melli Darsa & Co. with respect to matters of Indonesian law and

by Clifford Chance Pte. Ltd. with respect to matters of United States federal securities law.

— 227 —

INDEPENDENT AUDITORS

The consolidated financial statements for the years ended 31 December 2012, 2013 and 2014 and the

six months ended 30 June 2015 included in this Offering Circular have been audited by Kosasih,

Nurdiyaman, Tjahjo & Rekan (a member firm of Crowe Horwath International), as stated in its report

included elsewhere in this Offering Circular.

— 228 —

SUMMARY OF CERTAIN PRINCIPAL DIFFERENCES BETWEENINDONESIAN FAS AND IFRS

The consolidated financial statements included in this Offering Circular have been prepared andpresented in accordance with Indonesian FAS, or IFAS, which differ in certain areas from IFRS. Thepreparation of this summary is the responsibility of our Company. This summary should not be takenas an exhaustive list of all the differences between IFAS and IFRS. No attempt has been made toidentify all recognition and measurement, disclosures, presentation or classification differences thatwould affect the manner in which transactions or events are presented in the consolidated financialstatements (or notes thereto). Certain principal differences between IFAS and IFRS that may have amaterial effect on the consolidated financial statements are summarised below. Management has notquantified the effects of the differences discussed below. Accordingly, no assurance can be providedto investors that the respective consolidated financial statements of our Company would not bematerially different if prepared in accordance with IFRS.

Regulatory bodies that promulgate IFAS and IFRS have issued accounting standards which are not yeteffective and have significant ongoing projects that could affect the differences between IFAS andIFRS described below and the impact that these differences would have on the consolidated financialstatements of our Company and our Subsidiary in the future. In making an investment decision,investors must rely upon their own examination of our Company and our Subsidiary, the terms of theGlobal Offering and the financial information. Potential investors should consult their ownprofessional advisors for an understanding of the differences between IFAS and IFRS and how thosedifferences might affect the financial information disclosed in this Offering Circular.

Business Combinations of Entities under Common Control

Under IFAS, business combination of entities under common control is recognised at carrying valuebased on pooling-of-interest method. Any difference between the amount of consideration transferredand the carrying value of each business combination of entities under common control is recognisedas additional paid-in capital as part of equity section.

There is currently no equivalent standard in IFRS on the accounting treatment for combinations amongentities under common control. In such cases where there are no specifically applicable standards orinterpretations in IFRS, under which an entity develops an accounting policy that is reliable and thatis relevant to the decision-making needs of users. The entity first considers the requirements andguidance in other international standards and interpretations dealing with similar issues, and then thecontent of the conceptual framework of the International Accounting Standards Board.

In practice, an entity may choose to apply either the acquisition method under IFRS or the predecessoraccounting that is in line with U.S. or UK GAAP to account for the business combinations betweenentities under common control.

The acquisition method under IFRS requires the acquirer to measure the identifiable assets acquiredand the liabilities assumed at their acquisition date fair values. Goodwill is initially measured as theexcess of the aggregate of the consideration transferred and the amount of non-controlling interestrecognised over the net identifiable assets acquired and liabilities are assumed.

In applying the predecessor accounting standard, the assets and liabilities of the combining entities arereflected at their carrying amounts and no goodwill is recognised as a result of the combination.

Land Use Rights

In Indonesia, land use is regulated through the granting of land rights where the holder of the rightsenjoys the full use of the land for a stated period of time subject to extension.

— 229 —

Under IFAS, land rights are not amortised unless there is an indication that the renewal or extension

of the rights is not probable or cannot be obtained. Costs to obtain those rights for the first time are

capitalised as land under property and equipment but subsequent costs to extend or renew the rights

are recognised as intangible assets and amortised over the shorter of the economic life of the land or

term of the right.

Under IFRS, lease of land is accounted for either an operating lease or finance lease based on the

extent of risks and rewards incidental to ownership of the land. A lease of land is classified as a

finance lease if it transfers substantially all the risks and rewards incidental to ownership; otherwise,

it is an operating lease. Under operating lease, any premium paid for such rights represents prepaid

lease payments which should be amortised over the term of such rights.

— 230 —

INDEX TO FINANCIAL STATEMENTS

Page

Independent Auditors’ Report of (Kosasih, Nurdiyaman, Tjahjo & Rekan(a member firm of Crowe Horwath International)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-5

Report on Review of Interim Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-9

Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-12

Consolidated Financial Statements - as at and for the years ended 31 December 2012,

2013 and 2014 and the six months ended 30 June 2015

Consolidated Statements of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-15

Consolidated Statements of Profit or Loss and other Comprehensive Income . . . . . . . . . F-18

Consolidated Statements of Changes in Equity - Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-20

Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-25

Notes to the Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-27

— F-1 —

— F-2 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA TbkDAN ENTITAS ANAK

LAPORAN KEUANGAN KONSOLIDASIANPERIODE ENAM BULAN YANG BERAKHIR

PADA TANGGAL 30 JUNI 2015 DAN TAHUN YANG BERAKHIR PADA TANGGAL-TANGGAL

31 DESEMBER 2014, 2013, 2012 DAN1 JANUARI 2012/31 DESEMBER 2011 SERTA

PERIODE ENAM BULAN YANG BERAKHIR PADA TANGGAL 30 JUNI 2014 (TIDAK DIAUDIT)

BESERTA LAPORAN AUDITOR INDEPENDEN

PT KINO INDONESIA TbkAND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTSSIX-MONTH PERIOD ENDED JUNE 30, 2015

AND YEARS ENDED DECEMBER 31, 2014, 2013, 2012 AND

JANUARY 1, 2012/DECEMBER 31, 2011 AND SIX-MONTH PERIOD ENDED JUNE 30, 2014 (UNAUDITED)

WITH INDEPENDENT AUDITORS’ REPORT

DAFTAR ISI TABLE OF CONTENTS

Halaman/Pages

Surat Pernyataan Direksi Director’s Statement Letter

Laporan Auditor Independen Independent Auditors’ Report

Laporan atas Reviu Informasi Keuangan Interim Report on Review of Interim Financial Information

Laporan Posisi Keuangan Konsolidasian 1 - 3 Consolidated Statements of Financial Position

Laporan Laba Rugi dan Penghasilan Komprehensif LainKonsolidasian 4 - 5

Consolidated Statements of Profit or Loss and OtherComprehensive Income

Laporan Perubahan Ekuitas - Bersih Konsolidasian 6 - 10 Consolidated Statements of Changes in Equity - Net

Laporan Arus Kas Konsolidasian 11 - 12 Consolidated Statements of Cash Flows

Catatan atas Laporan Keuangan Konsolidasian 13 - 152 Notes to the Consolidated Financial Statements

Lampiran I - VIII 153 - 160 Attachment I - VIII

— F-3 —

RDJA The original consolidated financial statements included

AN

Juninho Widjaja, CPA Registrasi Akuntan Publik No. AP.1029/Public Accountant License No. AP. 1029

3 Agustus 2015/August 3, 2015

— F-4 —

— F-5 —

— F-6 —

— F-7 —

— F-8 —

— F-9 —

— F-10 —

— F-11 —

— F-12 —

— F-13 —

— F-14 —

The original consolidated financial statements included herein are in Indonesian language

1

PT KINO INDONESIA Tbk DAN ENTITAS ANAKLAPORAN POSISI KEUANGAN KONSOLIDASIAN

30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS

OF FINANCIAL POSITIONJune 30, 2015, December 31, 2014, 2013, 2012

and January 1, 2012/December 31, 2011(Expressed in millions of Rupiah,

unless otherwise stated)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 Catatan/ June 30, Notes 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) ASET ASSETSASET LANCAR CURRENT ASSETS 2c,2p,5, Kas dan bank 31,32 48.939 44.354 62.869 9.465 6.929 Cash and banks 2p,6,15,19, Piutang usaha 29,31,32 Trade receivables Pihak ketiga - bersih 752.277 445.839 301.937 248.117 211.250 Third parties - net

Pihak berelasi 2d,7a - - - 33.750 36.020 Related partiesPiutang lain-lain 2p,31,32 5.817 6.793 4.470 1.878 1.879 Other receivables 2e,8,15, Persediaan - bersih 19,29 289.712 329.937 217.693 193.649 142.167 Inventories - netPajak dibayar di muka 2o 468 821 66 - - Prepaid taxesUang muka 9 16.107 42.543 44.311 23.198 21.010 AdvancesBagian lancar beban Current portion of dibayar di muka 2f,10 20.048 18.347 8.477 3.230 1.218 prepaid expenses Jumlah Aset Lancar 1.133.368 888.634 639.823 513.287 420.473 Total Current Assets ASET TIDAK LANCAR NON-CURRENT ASSETSDeposito yang dibatasi 2c,2p,11,15, penggunaannya 31,32,37 38.604 31.524 10.453 11.688 791 Restricted depositsInvestasi pada Investment in Entitas Asosiasi 2h,12 37.816 42.925 44.550 2.996 3.051 AssociatesBeban ditangguhkan 2m,13 14.309 4.820 - - - Deferred charges 2g,2i,2q,14,15Aset tetap - bersih 19,27,29,33 958.829 870.052 618.304 444.097 227.674 Fixed assets - net Aset pajak tangguhan 2o,3,4,17d 6.649 6.395 8.603 8.186 5.364 Deferred tax assets Estimated claim for Taksiran tagihan pajak 17e 9.445 9.445 - - - tax refundBeban dibayar di muka - setelah dikurangi Prepaid expenses - bagian lancar 2f,10 9.629 6.341 1.383 995 574 net of current portion 2d,2p,7b,Piutang pihak berelasi 32 - - - 4.221 2.135 Due from related partiesAset tidak lancar lainnya 2p,31,32 6.132 3.245 1.864 1.517 2.377 Other non-current assets Jumlah Aset Tidak Lancar 1.081.413 974.747 685.157 473.700 241.966 Total Non-Current Assets JUMLAH ASET 2.214.781 1.863.381 1.324.980 986.987 662.439 TOTAL ASSETS

Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian

secara keseluruhan.

The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as

whole.

— F-15 —

The original consolidated financial statements included herein are in Indonesian language

2

PT KINO INDONESIA Tbk DAN ENTITAS ANAKLAPORAN POSISI KEUANGAN KONSOLIDASIAN

30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS

OF FINANCIAL POSITIONJune 30, 2015, December 31, 2014, 2013, 2012

and January 1, 2012/December 31, 2011(Expressed in millions of Rupiah,

unless otherwise stated)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 Catatan/ June 30, Notes 2015 (Disajikan kembali, Catatan 4/As restated, Note 4)

LIABILITAS DAN LIABILITIES AND EKUITAS - BERSIH EQUITY - NET LIABILITAS JANGKA PENDEK CURRENT LIABILITIES 2p,6,7g,8, 11,14,15 19,24,30,Utang bank jangka pendek 31,32,38 586.205 546.504 265.201 253.475 188.114 Short-term bank loans 2p,16,31,Utang usaha 32 Trade payables Pihak ketiga 334.617 268.968 297.788 228.518 179.015 Third parties Pihak berelasi 2d,7c 114.851 157.227 120.611 44.987 41.732 Related partiesUtang dividen 2p,31,32 - - 7.874 8.319 6.350 Dividend payablesUtang lain-lain 2p,31,32 7.221 8.481 7.452 - - Other payablesUtang pajak 2o,17a 42.674 16.083 9.419 5.895 6.768 Taxes payableBeban masih harus 2p,18,31, dibayar 32 85.722 50.048 29.445 6.946 11.074 Accrued expensesUang muka penjualan 2p,31,32 907 1.278 2.065 464 201 Advances from customersBagian liabilitas jangka panjang yang jatuh tempo dalam waktu 2p,30,31, Current portion of satu tahun 32 long-term liabilities 6,7g,8,14, Utang bank 15,19,38 46.238 30.656 31.223 43.730 30.160 Bank loans

Utang pembiayaan Consumer financing konsumen 20 1.229 2.343 5.837 6.847 5.652 payables

Utang sewa Finance lease pembiayaan 2n,21 8.355 8.704 6.229 - - payables Jumlah Liabilitas Jangka Pendek 1.228.019 1.090.292 783.144 599.181 469.066 Total Current Liabilities LIABILITAS JANGKA NON-CURRENT PANJANG LIABILITIESLiabilitas imbalan kerja Liabilities for employees’ karyawan 2j,4,22,29 45.588 39.972 15.821 17.884 15.245 benefits 2d,2p,7d,Utang pihak berelasi 31,32 - - 11.117 8.088 8.088 Due to related partiesLiabilitas pajak tangguhan 2o,3,4,17d 5.563 294 - - - Deferred tax liabilitiesLiabilitas jangka panjang - setelah dikurangi Long-term liabilities bagian yang jatuh tempo 2p,30, - net of current dalam waktu satu tahun 31,32 portion 6,7g,8,14, Utang bank 15,19,38 103.901 62.228 41.728 64.074 71.244 Bank loans Utang pembiayaan Consumer financing konsumen 20 1.379 1.743 2.083 4.916 4.245 payables

Utang sewa Finance lease pembiayaan 2n,21 2.510 6.468 9.895 - - payables Jumlah Liabilitas Total Non-Current Jangka Panjang 158.941 110.705 80.644 94.962 98.822 Liabilities JUMLAH LIABILITAS 1.386.960 1.200.997 863.788 694.143 567.888 TOTAL LIABILITIES

Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian

secara keseluruhan.

The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as

whole.

— F-16 —

The original consolidated financial statements included herein are in Indonesian language

3

PT KINO INDONESIA Tbk DAN ENTITAS ANAKLAPORAN POSISI KEUANGAN KONSOLIDASIAN

30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS

OF FINANCIAL POSITIONJune 30, 2015, December 31, 2014, 2013, 2012

and January 1, 2012/December 31, 2011(Expressed in millions of Rupiah,

unless otherwise stated)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 Catatan/ June 30, Notes 2015 (Disajikan kembali, Catatan 4/As restated, Note 4)

EKUITAS - BERSIH EQUITY - NET Ekuitas yang dapat Equity attributable diatribusikan kepada to owners of Parent pemilik Entitas Induk Entity Modal saham - nilai Share capital - nominal Rp 1.000.000 par value per saham (Rupiah Rp 1,000,000 per penuh) share (Full amount) Modal dasar - Authorized - 480.000 saham 480,000 shares tanggal 30 Juni as of June 30, 2015 dan 2015 and December 31 Desember 2014, 31, 2014 and 65,000 dan 65.000 saham shares as of tanggal 31 Desember December 31, 2013, 2013, 2012 dan 2012 and as of tanggal 1 Januari 2012/ January 1, 2012/ 31 Desember 2011 December 31,2011 Modal ditempatkan dan disetor penuh - Issued and fully 120.000 saham paid capital 120,000 tanggal 30 Juni shares as of June 30, 2015 dan 2015 and December 31 Desember 2014, 31, 2014 and 65,000 dan 65.000 saham shares as of tanggal 31 Desember December 31, 2013, 2013, 2012 dan 2012 and as of tanggal 1 Januari 2012/ January 1, 2012/ 31 Desember 2011 23 120.000 120.000 65.000 65.000 65.000 December 31, 2011Proforma modal yang berasal Capital proforma arising

dari transaksi from restructuring restrukturisasi entitas transactions of entities sepengendali 4 - (31.361) (10.720) (28.763) under common controlTambahan modal disetor 4,23 (66.377) (66.377) - - - Additional paid - in capital Differences in value of Selisih atas transaksi dengan transactions with pihak non-pengendali (1.966) (1.966) - - - non-controlling interestPenghasilan komprehensif Other comprehensive lain 4,25 434.956 409.992 296.310 154.812 - incomeSaldo laba 4 Retained earnings

Belum ditentukan penggunaannya 315.918 199.453 130.606 82.831 58.100 Unappropriated

Telah ditentukan penggunaannya 24.000 - - - - Appropriated Sub-Jumlah - bersih 826.531 661.102 460.555 291.923 94.337 Sub-Total - net Kepentingan non-pengendali 2b,4 1.290 1.282 637 921 214 Non-controlling interest JUMLAH EKUITAS - BERSIH 827.821 662.384 461.192 292.844 94.551 TOTAL EQUITY - NET JUMLAH LIABILITAS DAN TOTAL LIABILITIES EKUITAS - BERSIH 2.214.781 1.863.381 1.324.980 986.987 662.439 AND EQUITY - NET

Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian

secara keseluruhan.

The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as

whole.

— F-17 —

The original consolidated financial statements included herein are in Indonesian language

4

PT KINO INDONESIA Tbk DAN ENTITAS ANAKLAPORAN LABA RUGI DAN PENGHASILAN

KOMPREHENSIF LAIN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF

PROFIT OR LOSS ANDOTHER COMPREHENSIVE INCOME

Six-Month Period Ended June 30, 2015 and Years Ended December 31, 2014, 2013 and 2012

and Six-Month Period Ended June 30, 2014 (Unaudited)

(Expressed in millions of Rupiah,unless otherwise stated)

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, Catatan/ (Disajikan kembali, Catatan 4/ Notes 2015 2014 As restated, Note 4) PENJUALAN 2k,7e,26 1.746.627 1.595.262 3.339.386 2.267.314 1.692.137 SALESBEBAN POKOK PENJUALAN 2k,7f,14,27 1.012.231 1.038.432 2.200.936 1.355.230 1.020.631 COST OF SALES LABA KOTOR 734.396 556.830 1.138.450 912.084 671.506 GROSS PROFIT Beban penjualan 2k,28 (375.249 ) (356.946) (728.308) (614.596) (477.399) Selling expensesBeban umum dan 2k,6,8, General and administrative administrasi 14,22,29 (128.107) (107.016) (223.816) (178.544) (120.268) expenses 2k,15,19, Beban bunga 20,21,30 (42.853) (24.402) (60.503) (36.441) (31.141) Interest expenses Loss on foreign Rugi selisih kurs - bersih 2k,2l,31 (5.145) (1.707) (4.293) (11.751) (3.175) exchange - netBagian atas laba (rugi) Share in net earning bersih Entitas Asosiasi 2h,12 (5.109) (2.918) 2.118 (446) (55) (losses) in Associates Bank administration Beban administrasi bank 2k (1.770 ) (1.234) (3.143) (2.116) (1.877) expenses Gain on sale of Laba penjualan aset tetap 14 1.347 1.183 2.092 735 8 fixed assetsLaba penjualan barang bekas 999 856 1.595 4.342 1.048 Gain on sale of scrap Pendapatan bunga 2k 977 504 1.217 634 63 Interest incomeLain-lain - bersih 7.053 4.372 12.119 3.592 448 Others - net LABA SEBELUM BEBAN PAJAK INCOME BEFORE PENGHASILAN - INCOME TAX BERSIH 186.539 69.522 137.528 77.493 39.158 EXPENSES - NET BEBAN PAJAK INCOME TAX PENGHASILAN - EXPENSES - BERSIH 2o,17b (45.203) (20.033) (34.273) (19.037) (12.900) NET CURRENTLABA PERIODE/ PERIOD/YEAR

TAHUN BERJALAN INCOME BEFORE SEBELUM DAMPAK EFFECT OF

PENYESUAIAN PROFORMA PROFORMA 141.336 49.489 103.255 58.456 26.258 ADJUSTMENT Effect of proformaDampak penyesuaian adjustment on current profoma atas laba periode/ period/year tahun berjalan - 862 905 (7.301) 5.286 income LABA PERIODE/TAHUN CURRENT PERIOD/ BERJALAN 141.336 50.351 104.160 51.155 31.544 YEAR INCOME PENGHASILAN (BEBAN) OTHER KOMPREHENSIF COMPEHENSIVE LAIN 25 24.101 (7.800) 97.405 151.122 177.885 INCOME (EXPENSE) COMPREHENSIVE LABA KOMPREHENSIF INCOME BEFORE SEBELUM DAMPAK EFFECT OF PENYESUAIAN PROFORMA PROFORMA ATAS ADJUSTMENT ON PENGHASILAN OTHER KOMPREHENSIF COMPREHENSIVE LAIN 165.437 42.551 201.565 202.277 209.429 INCOME

Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian

secara keseluruhan.

The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as

whole.

— F-18 —

The original consolidated financial statements included herein are in Indonesian language

5

PT KINO INDONESIA Tbk DAN ENTITAS ANAKLAPORAN LABA RUGI DAN PENGHASILAN

KOMPREHENSIF LAIN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF

PROFIT OR LOSS ANDOTHER COMPREHENSIVE INCOME

Six-Month Period Ended June 30, 2015 and Years Ended December 31, 2014, 2013 and 2012

and Six-Month Period Ended June 30, 2014 (Unaudited)

(Expressed in millions of Rupiah,unless otherwise stated)

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, Catatan/ (Disajikan kembali, Catatan 4/ Notes 2015 2014 As restated, Note 4)

Dampak penyesuaian profoma atas Effect of proforma

penghasilan adjustment on other komprehensif lain - 2.699 2.985 (6.662) (23.329) comprehensive income LABA COMPREHENSIVE KOMPREHENSIF 165.437 45.250 204.550 195.615 186.100 INCOME

Laba periode/tahun berjalan yang dapat diatribusikan Current period/year income kepada: attributable to: Owners of the Parent

Pemilik Entitas Induk 141.330 50.241 103.995 50.893 31.460 Entity Kepentingan Non-controlling non-pengendali 2b 6 110 165 262 84 interest LABA PERIODE/TAHUN CURRENT PERIOD/ BERJALAN 141.336 50.351 104.160 51.155 31.544 YEAR INCOME Laba komprehensif yang dapat diatribusikan Comprehensive kepada: income attributable to: Owners of the Parent

Pemilik Entitas Induk 165.429 45.225 204.460 195.123 185.393 Entity Kepentingan Non-controlling non-pengendali 2b 8 25 90 492 707 interest LABA COMPREHENSIVE KOMPREHENSIF 165.437 45.250 204.550 195.615 186.100 INCOME LABA PER SAHAM BASIC EARNINGS DASAR YANG PER SHARE DIATRIBUSIKAN ATTRIBUTABLE TO KEPADA PEMILIK OWNERS OF THE ENTITAS INDUK PARENT ENTITY (RUPIAH PENUH) 2t,4,35 118 77 112 78 48 (FULL AMOUNT)

Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian

secara keseluruhan.

The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as

whole.

— F-19 —

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— F-24 —

The original consolidated financial statements included herein are in Indonesian language

Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian

secara keseluruhan.

The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as

whole.

11

PT KINO INDONESIA Tbk DAN ENTITAS ANAKLAPORAN ARUS KAS KONSOLIDASIAN

Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2015 dan Tahun yang Berakhir pada

Tanggal-tanggal 31 Desember 2014, 2013 dan 2012 serta Periode Enam Bulan yang Berakhir pada

Tanggal 30 Juni 2014 (Tidak Diaudit)(Dinyatakan dalam jutaan Rupiah,

kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS

Six-Month Period Ended June 30, 2015 and Years Ended December 31, 2014, 2013 and 2012

and Six-Month Period Ended June 30, 2014 (Unaudited)

(Expressed in millions of Rupiah,unless otherwise stated)

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, Catatan/ (Disajikan kembali, Catatan 4/ Notes 2015 2014 As restated, Note 4) ARUS KAS DARI CASH FLOWS FROM AKTIVITAS OPERATING OPERASI ACTIVITIESPenerimaan dari pelanggan 1.441.557 888.130 3.195.148 2.278.421 1.657.800 Receipt from customers Pendapatan bunga 977 504 1.217 594 63 Interest incomePembayaran kepada pemasok (869.337 ) (539.885) (2.155.310) (1.196.987) (937.680) Payment to suppliersPembayaran beban Payment for selling, penjualan, general and umum dan administrasi, administrative expenses,

dan kegiatan operasi and other operating lainnya (338.207 ) (283.114) (733.194) (653.983) (497.522) activitiesPembayaran kepada karyawan (173.777 ) (121.479) (319.196) (191.502) (144.663) Payment to employeesPembayaran bunga (42.910 ) (24.402) (60.512) (36.337) (31.140) Payment for interestPembayaran pajak (13.381 ) (4.129) (20.299) (16.426) (15.969) Payment for taxes Kas Bersih Diperoleh dari Net Cash Flows (Digunakan untuk) Provided by Aktivitas (Used for) Operating Operasi 4.922 (84.375) (92.146) 183.780 30.889 Activities ARUS KAS DARI CASH FLOWS FROM AKTIVITAS INVESTING INVESTASI ACTIVITIESPembelian aset tetap 14 (80.749) (82.025) (181.767) (58.516) (75.782) Acquisition of fixed assetsPenempatan deposito yang Placement of restricted

dibatasi penggunaannya 11 (58.266) (27.657) (63.293) (50.996) (26.346) depositsPenambahan aset Addition of other tidak lancar lainnya (2.474) - (175) (387) - non-current assetsPencairan deposito yang Redemption of restricted

dibatasi penggunaannya 11 51.186 22.826 42.222 52.231 15.449 depositsPenjualan aset tetap 14 1.887 1.774 2.963 1.260 34 Sale of fixed assetsAkuisisi Entitas Anak - (649) (19.311) - - Acquisition of SubsidiariesLikuidasi Entitas Asosiasi 12 - - 3.743 - - Liquidation of AssociatesPenyertaan saham pada Entitas Asosiasi 12 - - - (42.000) - Investment in Associates Kas Bersih Digunakan Net Cash Flows untuk Aktivitas Used for Investing Investasi (88.416) (85.731) (215.618) (98.408) (86.645) Activities ARUS KAS DARI CASH FLOWS FROM AKTIVITAS FINANCING PENDANAAN ACTIVITIESPenerimaan utang bank Proceed from short-term jangka pendek 15 751.672 344.847 977.878 327.700 281.902 bank loansPenerimaan utang bank Proceed from long-term jangka panjang 19 75.000 21.502 54.452 8.875 40.000 bank loansPembayaran utang bank Payment of short-term jangka pendek 15 (711.971) (194.092) (696.575) (315.974) (216.541) bank loansPembayaran utang bank Payment of long-term jangka panjang 19 (17.745) (11.032) (34.519) (43.730) (33.600) bank loansPembayaran utang sewa Payment of finance pembiayaan 21 (4.360) (3.489) (7.143) (2.535) lease payablesPembayaran kepada Payment to related

pihak berelasi (2.995) (21.375) (11.589) - (2.086) partiesPembayaran utang

pembiayaan Payment of customer konsumen 20 (1.853) (3.463) (6.179) (7.954) (7.501) financing payables

— F-25 —

The original consolidated financial statements included herein are in Indonesian language

Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian

secara keseluruhan.

The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as

whole.

12

PT KINO INDONESIA Tbk DAN ENTITAS ANAKLAPORAN ARUS KAS KONSOLIDASIAN

Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2015 dan Tahun yang Berakhir pada

Tanggal-tanggal 31 Desember 2014, 2013 dan 2012 serta Periode Enam Bulan yang Berakhir pada

Tanggal 30 Juni 2014 (Tidak Diaudit)(Dinyatakan dalam jutaan Rupiah,

kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS

Six-Month Period Ended June 30, 2015 and Years Ended December 31, 2014, 2013 and 2012

and Six-Month Period Ended June 30, 2014 (Unaudited)

(Expressed in millions of Rupiah,unless otherwise stated)

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, Catatan/ (Disajikan kembali, Catatan 4/ Notes 2015 2014 As restated, Note 4)

ARUS KAS DARI CASH FLOWS FROM AKTIVITAS FINANCING PENDANAAN ACTIVITIES (lanjutan) (continued)Penambahan modal disetor 23 - 55.000 55.000 - - Additional of share capitalPenerimaan dari Proceed of related

pihak berelasi - 7.621 - 4.197 - partiesPembayaran dividen - (39.948) (42.805) (6.295) (3.882) Payment of dividendPenambahan modal Additional of Subsidiary’s disetor Entitas Anak - - - 1.070 - share capital Kas Bersih Diperoleh dari Net Cash Flows (Digunakan untuk) Provided by Aktivitas (Used for) Financing

Pendanaan 87.748 155.571 288.520 (34.646) 58.292 Activities KENAIKAN (PENURUNAN) NET INCREASE BERSIH KAS DAN (DECREASE) IN BANK 4.254 (14.535) (19.244) 50.726 2.536 CASH AND BANKS EFFECT OF CHANGESDAMPAK PERUBAHAN IN EXCHANGE RATE NILAI TUKAR ATAS ON CASH AND KAS DAN BANK 331 70 729 311 - BANKS KAS DAN BANK CASH AND BANKS OF ENTITAS ANAK SUBSIDIARIES WHEN SAAT DIAKUISISI - - - 2.367 - ACQUIRED CASH AND BANKSKAS DAN BANK AWAL AT BEGINNING OF

PERIODE/TAHUN 44.354 62.869 62.869 9.465 6.929 THE PERIOD/YEAR CASH AND BANKSKAS DAN BANK AKHIR AT END OF

PERIODE/TAHUN 48.939 48.404 44.354 62.869 9.465 THE PERIOD/YEAR

— F-26 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

13

1. UMUM 1. GENERAL

a. Pendirian dan Informasi Umum Entitas Induk a. Establishment and General Information of The Company

PT Kino Indonesia Tbk (“Entitas Induk”) didirikandengan nama PT Kinocare Era Kosmetindoberdasarkan Akta Notaris No. 3 tanggal 8 Februari 1999 yang dibuat di hadapan Hadi Winata, S.H. Akta pendirian tersebut telah disahkan oleh Menteri Kehakiman Republik Indonesia melalui Surat Keputusan No. C-7429 HT.01.01-TH.99 tanggal 20 April 1999 dan diumumkan dalam Berita Negara Republik Indonesia No. 96, Tambahan No. 8015 tanggal 30 Nopember 1999.

PT Kino Indonesia Tbk (the “Company”) was established under the name of PT Kinocare Era Kosmetindo based on Notarial Deed No. 3 of Hadi Winata, S.H., dated February 8, 1999. The deed of establishment was approved by the Minister of Justice of the Republic of Indonesia in its Decision Letter No. C-7429 HT.01.01-TH.99 dated April 20, 1999 and was published in the State Gazette No. 96, Supplement No. 8015 dated November 30, 1999.

Anggaran Dasar Entitas Induk telah mengalami beberapa kali perubahan. Perubahan terakhir diaktakan dengan Akta Notaris No. 07 yang dibuat dihadapan Lenny Janis Ishak, S.H., tanggal 3 September 2014 yaitu mengenai perubahan nama Entitas Induk dari sebelumnya bernama PT Kinocare Era Kosmetindo menjadi PT Kino Indonesia. Akta perubahan Anggaran Dasar tersebut telah mendapat persetujuan dari keputusan Menteri Hukum dan Hak Asasi Manusia Republik Indonesia melalui Surat Keputusan No. AHU-07473.40.20.2014 tanggal 4 September 2014.

The Company’s Articles of Association have been amended several times, most recently by Notarial Deed No. 07 of Lenny Janis Ishak, S.H., dated September 3, 2014 concerning the change of the Company’s name from PT Kinocare Era Kosmetindo to PT Kino Indonesia. This amendment of Articles of Association was approved by the Ministry of Law and Human Rights in its Decision Letter No. AHU-07473.40.20.2014, dated September 4, 2014.

Sesuai dengan Pasal 3 Anggaran Dasar Entitas Induk, ruang lingkup kegiatan Entitas Induk adalah berusahadalam bidang industri makanan, minuman, obat-obatandan kosmetik. Entitas Induk memulai kegiatan operasi komersialnya di tahun 1999.

According to Article 3 of the Company‘s Article of Association, the Company’s scopes of activities are to engage in food industry, beverage, pharmaceutical and cosmetic. The Company started its commercial operations in 1999.

Entitas Induk berdomisili di Bandung dengan alamat di Jalan Cibolerang No. 203, Kav. 23, Bandung, Jawa Barat. Pabrik-pabrik Entitas Induk terdapat di empat (4)kabupaten di Pulau Jawa yaitu Kabupaten Sukabumi, Serang, Pasuruan dan Cidahu.

The Company is domiciled at Jalan Cibolerang No. 203, Kav. 23, Bandung, West Java. The Company’s factories located in four (4) districts in the island of Java, in district of Sukabumi, Serang,Pasuruan and Cidahu.

Entitas Induk langsung Entitas Induk adalah PT Kino Investindo, yang didirikan dan berdomisili di Indonesia, sedangkan pemegang saham utama Entitas Induk adalah Harry Sanusi.

The Company’s parent Company is PT Kino Investindo, which is established and domiciled in Indonesia, while the ultimate shareholder of the Company is Harry Sanusi.

b. Struktur Entitas Induk dan Entitas Anak b. The Company’s Structure and Subsidiaries

Laporan keuangan konsolidasian 30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011, meliputi laporan keuangan Entitas Induk dan Entitas Anaknya (secara kolektif disebut sebagai Grup) yang dimiliki secara langsung dan tidak langsung lebih dari 50% dengan rincian sebagai berikut:

The consolidated financial statements as of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011 include the financial statements of the Company and its Subsidiaries (collectively referred to as Group) that are directly and indirectly owned more than 50% with the following details:

— F-27 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

14

1. UMUM (lanjutan) 1. GENERAL (continued)

b. Struktur Entitas Induk dan Entitas Anak (lanjutan) b. The Company’s Structure and Subsidiaries (continued)

Entitas Anak/Subsidiaries

Lokasi/Domicile

Persentase Kepemilikan/ Percentage of

Ownership

Tahun Pendirian/

Year of Establishment

Jumlah Aset/ Total Assets

30 Juni 2015/

June 30, 2015

31 Desember 2014/

December 31, 2014

31 Desember 2013/

December 31, 2013

31 Desember 2012/

December 31, 2012

1 Januari 2012/31

Desember 2011/

January 1, 2012/

December 31, 2011

Langsung dari Entitas Induk/Directly through the CompanyPT Dutalestari Sentratama (DLS) Jakarta 99,90% 1991 1.010.152 715.725 325.247 234.145 147.582Kino International Pte., Ltd. (KINT) Singapura 100 % 2013 94.107 91.472 - - -

Tidak langsung melalui KINT/Indirectly through KINTKinocare (M) Sdn., Bhd. (KCM) Malaysia 100 % 2003 16.713 16.476 19.978 - -Kino Consumer Philippines Inc. (KCP) Filipina 100 % 2004 44.900 51.267 26.621 - -Kino Vietnam Co., Ltd. (KVC) Vietnam 100 % 2013 3.439 1.665 1.039 - -

PT Dutalestari Sentratama (DLS) PT Dutalestari Sentratama (DLS)

Entitas Induk memiliki secara langsung 99,90% saham DLS yang bergerak dalam bidang perdagangan umum, distributor, industri/pabrik, dan pemberian jasa. DLSberdomisili di Jakarta dan telah beroperasi komersial tahun 1991.

The Company has direct ownership interest of 99.90% in DLS which is engaged in general trading, distribution, industrial/manufacturing, and service. DLS is domiciled in Jakarta and started its commercial operations in 1991.

Berdasarkan Akta Notaris Lenny Janis Ishak, S.H.,No. 24 pada tanggal 12 Juni 2014, pemegang saham DLS menyetujui peningkatan modal ditempatkan dan disetor penuh dari sebesar Rp 500 menjadi sebesar Rp 13.500. Peningkatan modal ditempatkan dan disetor penuh sebesar Rp 13.000 seluruhnya disetor oleh Entitas Induk. Pemegang saham DLS juga menyetujui penjualan saham milik Harry Sanusi, Ali Sanusi dan Ng Soi Kiauw masing-masing sebesar Rp 162, Rp 175 dan Rp 150 atau masing-masing setara dengan 162, 175, dan 150 lembar saham dengan 31,4%, 35%, dan 30% kepemilikan kepadaEntitas Induk.

Based on Notarial Deed No. 24 of Lenny Janis Ishak, S.H., dated June 12, 2014, the DLS’s shareholders agreed to increase the issued and fully paid capital from Rp 500 to Rp 13,500. The increase of issued andfully paid capital amounted to Rp 13,000 was paidentirely by the Company. The DLS’s shareholders also agreed the sale of shares held by Harry Sanusi, Ali Sanusi and Ng Soi Kiauw amounted to Rp 162,Rp 175 and Rp 150, respectively, or equivalent with 162, 175, and 150 number of shares with 31.4%, 35%, and 30% ownership to the Company.

Berdasarkan Akta Notaris Lenny Janis Ishak, S.H.,No. 9 pada tanggal 15 Oktober 2014, pemegang saham DLS menyetujui peningkatan modal ditempatkan dan disetor penuh dari sebesar Rp 13.500 menjadi sebesar Rp 67.500. Peningkatan modal ditempatkan dan disetor penuh sebesar Rp 54.000 disetor oleh seluruh pemegang saham secara proposional.

Based on Notarial Deed No. 9 of Lenny Janis Ishak, S.H., dated October 15, 2014, the DLS’s shareholders agreed to increase the issued and fully paid capital from Rp 13,500 to Rp 67,500. The increase of issued and fully paid capital amounted to Rp 54,000 was proportionally paid by all shareholders.

— F-28 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

15

1. UMUM (lanjutan) 1. GENERAL (continued)

b. Struktur Entitas Induk dan Entitas Anak (lanjutan) b. The Company’s Structure and Subsidiaries(continued)

Kino International Pte., Ltd. (KINT) Kino International Pte., Ltd. (KINT)

Entitas Induk memiliki secara langsung 100% saham KINT yang merupakan Perusahaan Induk dari Entitas -Entitas Anak yang berdomisili di luar negeri. KINT berdomisili di Singapura dan didirikan pada tahun 2013.

The Company has direct ownership of 100% in KINT,which is the holding company of the Company’s Subsidiaries domiciled in overseas. KINT is domiciled in Singapore and was established in 2013.

Pada tanggal 26 Desember 2013, Entitas Induk mendirikan KINT dengan 100% kepemilikan saham dengan 1 saham setara dengan USD 1. Pada tanggal 24 September 2014, Entitas Induk melakukan peningkatan modal saham terhadap KINT sebanyak 7.687.438 lembar saham atau setara dengan USD 7.687.438, sehingga Entitas Induk memiliki 7.687.439 lembar saham KINT dengan 100%kepemilikan atau setara dengan USD 7.687.439.

On December 26, 2013, the Company establishedKINT with 100% ownership with 1 shares equivalent with USD 1. On September 24, 2014, the Company made an increase to KINT’s share capital amounting to 7,687,438 shares or equivalent with USD 7,687,438, hence the Company owns 7,687,439 shares of KINT with 100% of ownership equivalent with USD 7,687,439.

Kinocare (M) Sdn., Bhd. (KCM) Kinocare (M) Sdn., Bhd. (KCM)

Entitas Induk, melalui KINT, memiliki secara tidak langsung 100% saham KCM yang bergerak dalam bidang distribusi. KCM berdomisili di Malaysia dan telah beroperasi komersial tahun 2004.

The Company, through KINT, has indirect ownership of 100% in KCM which is engaged in distribution. KCM is domiciled in Malaysia and started its commercial operations in 2004.

Pada tanggal 9 Juni 2014, KINT menandatangani perjanjian Share Sale and Purchase untuk membeli 92,38% kepemilikan saham di KCM atau sebanyak 1.455.000 lembar saham dari Harry Sanusi, pemegang saham dan presiden direktur, dengan harga akuisisi sebesar Rp 5.333.

On June 9, 2014, KINT entered into a Share Sale and Purchase Agreement to acquire 92.38% ownership or 1,455,000 shares in KCM owned by Harry Sanusi, related party, with acquisition price amounted to Rp 5,333.

Pada tanggal 9 Juni 2014, KINT menandatangani perjanjian Share Sale and Purchase untuk membeli 7,62% kepemilikan saham di KCM atau sebanyak 120.000 lembar saham dari Toh Boon Huat, pihak ketiga, dengan harga akuisisi sebesar Rp 1.127.

On June 9, 2014, KINT entered into a Share Sale and Purchase Agreement to acquire 7.62% ownership or 120,000 shares in KCM owned by Toh Boon Huat, third party, with acquisition price amounted toRp 1,127.

Pada tanggal 5 September 2014, KCM melakukan peningkatan modal disetor sebesar 7.124.112 saham, atau setara dengan Rp 25.900.

On September 5, 2014, KCM increased its paid-upcapital amounted to 7,124,112 shares, or equivalent to Rp 25,900.

Kino Consumer Philippines Inc. (KCP) Kino Consumer Philippines Inc. (KCP)

Entitas Induk, melalui KINT, memiliki secara tidak langsung 100% saham KCP yang bergerak dalam bidang distribusi. KCP berdomisili di Filipina dan telah beroperasi komersial tahun 2004.

The Company, through KINT, has indirect ownership of 100% in KCP which is engaged in distribution. KCP is domiciled in Philippine and started its commercial operations in 2004.

Pada tanggal 2 Juli 2014, KINT menandatangani perjanjian Share Sale and Purchase untuk membeli 99,9% kepemilikan saham di KCP atau sebanyak 41.035.995 lembar saham dari Harry Sanusi, pemegang saham dan presiden direktur, dengan harga akuisisi sebesar Rp 11.196.

On July 2, 2014, KINT entered into a Share Sale and Purchase Agreement to acquire 99.9% ownership or 41,035,995 shares in KCP owned by Harry Sanusi, shareholder and president director, with acquisition price amounted to Rp 11,196.

— F-29 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

16

1. UMUM (lanjutan) 1. GENERAL (continued)

b. Struktur Entitas Induk dan Entitas Anak (lanjutan) b. The Company’s Structure and Subsidiaries(continued)

Kino Vietnam Company Limited (KVC) Kino Vietnam Company Limited (KVC)

Entitas Induk, melalui KINT, memiliki secara tidak langsung 100% saham KVC yang bergerak dalam bidang distribusi. KVC berdomisili di Vietnam dan telah beroperasi komersial tahun 2013.

The Company, through KINT, has indirect ownership of 100% in KVC which is engaged in distribution. KVC is domiciled in Vietnam and started its commercialoperations in 2013.

Pada tanggal 2 Juli 2014, KINT menandatangani perjanjian Share Sale and Purchase untuk membeli 100% kepemilikan saham di KVC dari Harry Sanusi, pemegang saham dan presiden direktur, dengan harga akuisisi sebesar Rp 1.097.

On July 2, 2014, KINT entered into a Share Sale and Purchase Agreement to acquire 100% ownership shares in KVC owned by Harry Sanusi, a related party, with acquisition price amounted to Rp 1,097.

c. Dewan Komisaris, Direksi dan Karyawan c. Board of Commissioners, Directors and Employees

Pada tanggal 30 Juni 2015, susunan dewan komisaris dan direksi Entitas Induk berdasarkan Keputusan Sirkuler Pemegang Saham sebagai pengganti Rapat Umum Pemegang Saham (Catatan 38) tanggal 29 Juni 2015, adalah sebagai berikut:

As of June 30, 2015, the composition of the board of commissioners and directors of the Company based on Circular Statements of Shareholders as subtitute of the Company’s General Shareholders Meetings (Note 38)dated June 29, 2015 are as follows:

Dewan Komisaris/Board of Commissioners

Presiden Komisaris : Alfonso Djakaria Rahardja : President CommissionerKomisaris : Adjie Rustam Ramdja : Commissioner Komisaris Independen : Susanto Setiono : Independent Commissioner

Direksi/Directors

Presiden Direktur : Harry Sanusi : President DirectorWakil Presiden Direktur : Tjiang Likson Chandra : Vice President DirectorDirektur : Peter Chayson : DirectorDirektur : Rody Teo : DirectorDirektur Independen : Alex Kurniawan : Independent Director

Pada tanggal-tanggal 31 Desember 2014, 2013 dan2012, susunan dewan komisaris dan direksi Entitas Induk berdasarkan Pernyataan Keputusan Rapat yang diaktakan sesuai dengan Akta Notaris No. 118 tanggal 15 Oktober 2012 dari DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., dan telah dijelaskan kembali berdasarkan Akta No. 3 tanggal 3 Juli 2013 dari DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., adalah sebagai berikut:

As of December 31, 2014, 2013 dan 2012, the composition of the board of commissioners and directors of the Company based on Statement of Meeting Resolutions which was notarized through Notarial Deed No. 118 dated October 15, 2012 of DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., and hadbeen reaffirmed based on Deed No. 3 dated July 3, 2013 of DR. Fulgensius Jimmy H.L.T., S.H., M.H.,M.M., are as follows:

Dewan Komisaris/Board of Commissioners

Presiden Komisaris : Ali Sanusi : President CommissionerKomisaris : Adjie Rustam Ramdja : Commissioner

Direksi/Directors

Presiden Direktur : Harry Sanusi : President DirectorDirektur : Tjiang Likson Chandra : Director

— F-30 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

17

1. UMUM (lanjutan) 1. GENERAL (continued)

c. Dewan Komisaris, Direksi dan Karyawan (lanjutan) c. Board of Commissioners, Directors and Employees (continued)

Pada tanggal 1 Januari 2012/31 Desember 2011, susunan dewan komisaris dan direksi Entitas Induk berdasarkan Pernyataan Keputusan Rapat yang diaktakan sesuai dengan Akta Notaris No. 27 tanggal 7 Oktober 2009 dari DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M, adalah sebagai berikut:

As of January 1, 2012/December 31, 2011, the composition of the board of commissioner and directors of the Company based on Statement of Meeting Resolutions which was notarized through Notarial Deed No. 27 dated October 7, 2009 of DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., are as follows:

Komisaris/Commissioner

Komisaris : Ali Sanusi : Commissioner

Direksi/Directors

Presiden Direktur : Harry Sanusi : President DirectorDirektur : Tjiang Likson Chandra : Director

Pada tanggal 30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011, Grup belum memiliki komite audit (Catatan 38).

On June 30, 2015, December 31, 2014, 2013, 2012and January 1, 2012/December 31, 2011, the Group have not had audit committee yet (Note 38).

Pada tanggal 30 Juni 2015, 31 Desember 2014, 2013,2012 dan 1 Januari 2012/31 Desember 2011, Grup memiliki 4.371, 4.356, 4.227, 3.212, dan 1.744karyawan tetap (tidak diaudit).

On June 30, 2015, December 31, 2014, 2013, 2012and January 1, 2012/December 31, 2011, the Group have a total of 4,371, 4,356, 4,227, 3,212 and 1,744permanent employees, respectively (unaudited).

d. Penyelesaian Laporan Keuangan Konsolidasian d. The Completion of Consolidated Financial Statements

Manajemen Grup, yang diwakili oleh Harry Sanusi, Presiden Direktur, dan Peter Chayson, Direktur,bertanggungjawab atas penyusunan dan penyajian laporan keuangan konsolidasian yang telah diselesaikan dan disetujui untuk diterbitkan pada tanggal 9 Oktober 2015.

The management of the Group, represented by Harry Sanusi, President Director, and Peter Chayson, Director, is responsible for the preparation and presentation of these consolidated financial statementswhich were completed and authorized for issue on October 9, 2015.

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Dasar Penyusunan Laporan Keuangan Konsolidasian

a. Basis of Preparation of the Consolidated Financial Statements

Laporan keuangan konsolidasian telah disusun dan disajikan sesuai dengan Standar Akuntansi Keuangan di Indonesia (“SAK”), yang mencakup Pernyataan dan Interpretasi yang dikeluarkan oleh Dewan StandarAkuntansi Keuangan Ikatan Akuntan Indonesia(“DSAK”) dan Peraturan-peraturan serta Pedoman Penyajian dan Pengungkapan laporan keuangan yang diterbitkan oleh OJK, dahulu Badan Pengawas Pasar Modal dan Lembaga Keuangan (BAPEPAM-LK).

The consolidated financial statements have been prepared and presented in accordance with Indonesian Financial Accounting Standards (“SAK”), which comprise the Statements and Interpretations issued bythe Financial Accounting Standards Board of the Indonesian Institute of Accountants (“DSAK”) and the Regulations and the Guidelines on Financial StatementPresentation and Disclosures issued by OJK, formerly Capital Market and Financial Institution Supervisory Board (BAPEPAM-LK).

Grup menerapkan PSAK No. 1 (revisi 2013), “Penyajian Laporan Keuangan”. Penerapan standar tersebut tidak berdampak material terhadap laporan keuangan konsolidasian.

Group applied PSAK No. 1 (revised 2013), “Presentation of Financial Statements”. The implementation of this standard does not have significant impact on the consolidated financial statements.

— F-31 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

18

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)

a. Dasar Penyusunan Laporan Keuangan Konsolidasian (lanjutan)

a. Basis of Preparation of the Consolidated Financial Statements (continued)

Beberapa standar akuntansi yang telah direvisi dan diterbitkan diterapkan efektif tanggal 1 Januari 2015 secara prospektif dan retrospektif. Penerapan PSAK tertentu mengakibatkan penyajian kembali laporan posisi keuangan konsolidasian 31 Desember 2014, 2013 dan 2012 (Catatan 4).

Some accounting standards that have been revised and published are implemented effective January 1, 2015 prospectively and retrospectively. The implementation of certain PSAK resulted in the restatement of consolidated statements of financial position as of December 31, 2014, 2013 and 2012 (Note 4).

Laporan keuangan konsolidasian, kecuali untuk laporan arus kas konsolidasian, disusun berdasarkan dasar akrual dengan menggunakan dasar biaya historis, kecuali untuk beberapa akun tertentu yang diukur berdasarkan pengukuran sebagaimana diuraikan dalam kebijakan akuntansi masing-masing akun tersebut.

The consolidated financial statements, except for the consolidated statements of cash flows, are prepared under accrual basis using historical cost concept of accounting, except for certain account which are measured by the measurement as described in related accounting policies of each account.

Laporan arus kas konsolidasian disusun dengan menggunakan metode langsung, menyajikan penerimaan dan pengeluaran kas yang diklasifikasikan dalam aktivitas operasi, investasi dan pendanaan.

The consolidated statements of cash flows have been prepared using the direct method, presenting cash receipts and payments classified into operating, investing and financing activities.

Mata uang pelaporan yang digunakan dalam penyusunan laporan keuangan konsolidasian adalah Rupiah, yang merupakan mata uang fungsional Grup.

The reporting currency used in the preparation of the consolidated financial statements is Indonesian Rupiah, which is the functional currency of the Group.

b. Prinsip - prinsip Konsolidasian b. Principles of Consolidation

Grup menerapkan PSAK No. 65, “Laporan Keuangan Konsolidasian”.

The Group applied PSAK No. 65, “Consolidated Financial Statements”.

Laporan keuangan konsolidasian meliputi laporan keuangan Entitas Induk dan Entitas Anak seperti yang disebutkan pada Catatan 1b, dimana Entitas Induk memiliki pengendalian.

The consolidated financial statements include the financial statements of the Company and itsSubsidiaries as mentioned in Note 1b, in which the Company has control.

Semua saldo dan transaksi antar perusahaan yang material, termasuk keuntungan atau kerugian yang belum realisasi, jika ada, dieliminasi untuk mencerminkan posisi keuangan dan hasil operasi Grupsebagai satu kesatuan usaha.

All material intercompany balances and transactions, including unrealized gains or losses, if any, are eliminated to reflect the financial position and the results of operations of the Group as one business entity.

Entitas-Entitas Anak dikonsolidasi secara penuh sejak tanggal penyajian, yaitu tanggal Entitas Induk memperoleh pengendalian, sampai dengan tanggal Entitas Induk kehilangan pengendalian.

Subsidiaries are fully consolidated from the dates of presentation, being the date on which the Company obtained control, and continue to be consolidated until the date such control ceases.

Pengendalian diperoleh apabila Grup memiliki seluruh hal berikut ini:1. Kekuasaan atas investee2. Eksposur atau hak atas imbal hasil variabel dari

keterlibatannya dengan investee; dan3. Kemampuan untuk menggunakan kekuasaannya

atas investee untuk mempengaruhi jumlah imbal hasil Grup.

Control is achieved when the Group has all the following:1. power over the investee;2. is exposed, or has rights, to variable returns from

its involvement with the investee; and3. the ability to use its power to affect its returns.

— F-32 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

19

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)

b. Prinsip - prinsip Konsolidasian (lanjutan) b. Principles of Consolidation (continued)

Rugi Entitas Anak yang tidak dimiliki secara penuh diatribusikan pada kepentingan non-pengendalibahkan jika hal ini mengakibatkan kepentingan non-pengendali mempunyai saldo defisit.

Losses of a non-wholly owned Subsidiaries are attributed to the non-controlling interest even if such losses result in a deficit balance for the non-controlling interest.

Perubahan dalam bagian kepemilikan Entitas Induk pada suatu Entitas Anak yang tidak mengakibatkan hilangnya pengendalian dicatat sebagai transaksi ekuitas.

Changes in the Company’s ownership interest in a Subsidiary that do not result in loss of control are recorded as equity transactions.

Setiap perbedaan antara jumlah kepentingan non-pengendali disesuaikan dengan nilai wajar imbalan yang diberikan dan diterima diakui secara langsung dalam ekuitas sebagai akun “Selisih atas Transaksi dengan Pihak Non-pengendali”.

The Company shall recognize directly in equity any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received, and attribute it to the owners of the parent, recorded as “Difference in Value of Transactions with Non-Controlling Interest”.

Jika kehilangan pengendalian atas suatu Entitas Anak, maka Grup:

If it loses control over a Subsidiary, the Group:

� menghentikan pengakuan aset (termasuk setiap goodwill) dan liabilitas Entitas Anak;

� menghentikan pengakuan jumlah tercatat setiap kepentingan non-pengendali;

� menghentikan pengakuan akumulasi selisih penjabaran, yang dicatat di ekuitas, bila ada;

� mengakui nilai wajar pembayaran yang diterima;

� mengakui setiap sisa investasi pada nilai wajarnya;

� mengakui setiap perbedaan yang dihasilkan sebagai keuntungan atau kerugian dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian; dan

� mereklasifikasi bagian induk atas komponen yang sebelumnya diakui sebagai penghasilan komprehensif lain ke laba rugi, atau mengalihkan secara langsung ke saldo laba.

� derecognizes the assets (including goodwill) and liabilities of the Subsidiary;

� derecognizes the carrying amount of any non-controlling interest;

� derecognize the cumulative translation differences, recorded in equity, if any;

� recognize the fair value of the consideration received;

� recognize the fair value of any investment retained;

� recognize any surplus or deficit in profit or loss in consolidated statements of profit or loss and other comprehensive income; and

� reclassify the parent’s share of components previously recognized in other comprehensive income to profit or loss or retained earnings, as appropriate.

Kepentingan non-pengendali mencerminkan bagian atas laba atau rugi dan aset neto dari Entitas Anak yang tidak dapat diatribusikan secara langsung maupun tidak langsung kepada Entitas Induk, yang masing-masing disajikan dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian dan dalam ekuitas dalam laporan posisi keuangan konsolidasian, terpisah dari bagian yang dapat diatribusikan kepada pemilik Entitas Induk.

Non-controlling interest represents the portion of the profit or loss and net assets of the Subsidiaries attributable to equity interests that are not owned directly or indirectly by the Company, which are presented in the consolidated statements of profit or loss and other comprehensive income and under the equity section of the consolidated statements of financial position, respectively, separately from the corresponding portion attributable to the owners of the Parent Company.

— F-33 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

20

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)

b. Prinsip - prinsip Konsolidasian (lanjutan) b. Principles of Consolidation (continued)

Transaksi restrukturisasi antara entitas sepengendali Restructuring transactions of entities under common control

Berdasarkan PSAK No. 38, pengalihan bisnis antara entitas sepengendali tidak mengakibatkan perubahan substansi ekonomi kepemilikan atas bisnis yang dialihkan dan tidak dapat menimbulkan laba atau rugi bagi Grup secara keseluruhan ataupun bagi entitas individual dalam Grup tersebut. Karena pengalihan bisnis antara entitas sepengendali tidak mengakibatkan perubahan substansi ekonomi, bisnis yang dipertukarkan dicatat pada nilai buku sebagaikombinasi bisnis dengan menggunakan metode penyatuan kepemilikan.

Under PSAK No. 38, transfer of business within entities under common control does not result in a change of the economic substance of ownership of the business being transferred and would not result in a gain or loss to the Group or to the individual entity within the Group. Since the transfer of business of entities under common control does not result in a change of the economic substance, the business being exchanged is recorded at book values as a business combination using the pooling-of-interests method.

Dalam menerapkan metode penyatuan kepemilikan, komponen laporan keuangan untuk periode terjadi kombinasi bisnis dan periode lain yang disajikan untuk tujuan perbandingan, disajikan sedemikian rupa seolah-olah kombinasi bisinis telah terjadi sejak awal periode terjadi sepengendalian. Selisih antara nilai tercatat transaksi kombinasi bisnis dan jumlah imbalan yang dialihkan diakui dalam akun “Tambahan modal disetor”.

In applying the pooling-of-interests method, the components of the financial statements for the period during which the restructuring occurred and for other periods presented, for comparison purposes, are presented in such a manner as if the restructuring has already happened since the beginning of the period during which the entities were under common control. The difference between the carrying amount of the business combination transaction and the consideration transferred is recognized under the “Additional paid - in capital" account.

c. Kas dan Bank, dan Deposito yang Dibatasi

Penggunaannyac. Cash and Banks and Restricted Deposits

Kas dan bank terdiri dari kas di tangan dan kas di bank yang tidak dibatasi penggunaannya dan tidak dijadikan jaminan.

Cash and banks consists of cash on hand and cash in banks that are not restricted and are not used as collateral.

Deposito yang dibatasi penggunaannya merupakan deposito berjangka dengan jatuh tempo lebih dari 3 bulan sejak tanggal penempatan dan digunakan sebagai jaminan serta dibatasi penggunaannya.

Restricted deposits represent time deposits with maturities of more than 3 months from the date of placement, which are used as collateral and are restricted in use.

d. Transaksi Dengan Pihak-pihak Berelasi d. Transactions with Related Parties

Grup menerapkan PSAK No. 7 (revisi 2010),“Transaksi Pihak Berelasi”.

The Group applied PSAK No. 7 (revised 2010), “Related Parties Transaction”.

Pihak berelasi adalah orang atau entitas yang terkait dengan Grup, jika pihak tersebut:

A related party is a person or entity that is related tothe Group, if the party:

a. Langsung, atau tidak langsung yang melalui satu atau lebih perantara, suatu pihak (i) mengendalikan, atau dikendalikan oleh, atau

berada di bawah pengendalian bersama, dengan Grup;

(ii) memiliki kepentingan dalam Grup yangmemberikan pengaruh signifikan atas Grup; atau

(iii) memiliki pengendalian bersama atas Grup.b. Suatu pihak entitas asosiasi dengan Grup;c. Suatu pihak adalah ventura bersama dalam hal

Grup sebagai venturer;

a. Directly, or indirectly through one or moreintermediaries, the party(i) controls, is controlled by, or is under common

control with, the Group;

(ii) has an interest in the Group that gives significant influence over the Group; or

(iii) has joint control over the Group.b. The party is an associate of the Group;c. The party is a joint venture in which the Group as a

venturer;

— F-34 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

21

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)

d. Transaksi Dengan Pihak-pihak Berelasi (lanjutan) d. Transactions with Related Parties (continued)

d. Suatu pihak adalah anggota dari personil manajemen kunci Grup;

e. Suatu pihak adalah anggota keluarga dekat dari individu yang diuraikan dalam butir (a) atau (d);

f. Suatu pihak adalah entitas yang dikendalikan, dikendalikan bersama atau dipengaruhi signifikan oleh hak suara signifikan pada beberapa entitas, langsung maupun tidak langsung, individu seperti diuraikan dalam butir (d) atau (e); atau

g. Suatu pihak adalah suatu program imbalan pascakerja untuk imbalan kerja dari Grup atau entitas yang terkait dengan Grup.

d. The party is a member of the key management personnel of the Group;

e. The party is a close family member of an individual described in paragraph (a) or (d);

f. The party is an entity that is controlled, jointly controlled or significantly influenced by significant voting rights in several entities, directly or indirectly, individually as described in (d) or (e); or

g. The party has a post-employment benefit plan for the benefit of employees of the Group, or of any entity that is a related party of the Group.

Seluruh transaksi dan saldo yang material dengan pihak-pihak berelasi diungkapkan dalam catatan atas laporan keuangan konsolidasian yang relevan.

All transactions and balances with related parties are disclosed in the relevant notes to the consolidated financial statements.

e. Persediaan e. Inventories

Grup menerapkan PSAK No. 14 (revisi 2008), “Persediaan”.

The Group applied PSAK No. 14 (revised 2008), “Inventories”.

Persediaan dinyatakan sebesar nilai yang lebih rendah antara biaya perolehan atau nilai realisasi bersih. Biaya perolehan persediaan Grup ditentukan dengan menggunakan metode rata-rata. Nilai realisasi bersih ditentukan berdasarkan taksiran harga jual dalam kegiatan usaha biasa setelah dikurangi dengan taksiran beban yang diperlukan untuk menyelesaikan dan menjual persediaan tersebut.

Inventories are valued at lower of cost or net realizablevalue. The cost of Group’s inventories is determined using weighted average method. Net realizable value are determined based on the estimated selling price in the ordinary course of business less estimated costs necessary to complete and sell the inventories.

Penyisihan untuk penurunan nilai dan persediaan usang, jika ada, ditentukan berdasarkan penelaahan atas kondisi persediaan pada akhir periode untuk menyesuaikan nilai persediaan ke nilai realisasi bersih.

Allowance for impairment and obsolescence of inventories, if any, is determined based on a review of the condition of inventories at the end of period to adjust the carrying value of inventories to net realizable value.

f. Beban Dibayar di Muka f. Prepaid Expense

Beban dibayar di muka diamortisasi selama manfaat masing-masing beban dengan menggunakan metode garis lurus dan dibebankan selama umur manfaatnya.Bagian jangka panjang dari beban dibayar di muka dicatat dalam akun “Beban dibayar di muka - setelah dikurangi bagian lancar” sebagai bagian aset tidak lancar pada laporan posisi keuangan konsolidasian.

Prepaid expenses are amortized over the periods benefited of each expense using the straight-line method and charged to operations over the useful lives. The long-term prepaid expenses are recorded in “Prepaid expenses - net of current portion" as part of non-current assets in the consolidated statements of financial position.

g. Aset Tetap g. Fixed Assets

Grup menerapkan PSAK No. 16 (revisi 2011), “Aset Tetap”.

The Group applied PSAK No. 16 (revised 2011), “Fixed Assets”.

Seluruh aset tetap awalnya diakui sebesar biaya perolehan, yang terdiri atas harga perolehan dan biaya-biaya tambahan yang dapat diatribusikan langsung untuk membawa aset ke lokasi dan kondisi yang diinginkan supaya aset tersebut siap digunakan sesuai dengan maksud manajemen.

All fixed assets are initially recognized at cost, which comprises its purchase price and any costs directly attributable in bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

— F-35 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

22

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)

g. Aset Tetap (lanjutan) g. Fixed Assets (continued)

Setelah pengakuan awal, aset tetap kecuali tanah dinyatakan pada biaya perolehan dikurangi akumulasi penyusutan dan akumulasi rugi penurunan nilai.

Subsequent to initial recognition, fixed assets except land are stated at cost less any subsequentaccumulated depreciation and impairment losses.

Penyusutan aset dimulai pada saat aset tersebut siap untuk digunakan sesuai maksud penggunaannya dan dihitung dengan menggunakan metode garis lurus berdasarkan estimasi umur manfaat ekonomis.

Depreciation of an asset starts when it is available for use and is computed using the straight-line method based on the estimated useful lives of the assets.

Efektif tanggal 1 Januari 2014, Entitas Induk dan DLSmengubah metode penyusutan atas aset tetap selain bangunan, dari sebelumnya metode saldo menurun ganda menjadi metode garis lurus. Perubahan estimasi ini diterapkan secara prospektif. Entitas Induk juga mengubah estimasi masa manfaat ekonomis atas beberapa aset tetap bangunan dari sebelumnya 10 tahun menjadi 20 tahun.

Effective January 1, 2014, the Company and DLSchanged the depreciation method of fixed assets,except buildings from the previously double declining method into the straight-line method. Changes in these estimates are applied prospectively. The Company also changed the estimated useful lives of some buildings from previously 10 years into 20 years.

Pengaruh atas perubahan metode penyusutan danestimasi masa manfaat ini diakui secara prospektif pada laba rugi periode terjadinya perubahan tersebut sebagai berikut:

The impact of the changes in depreciation method and estimated useful lives are recognized prospectively in the profit or loss of the period of change as follows:

Pengurangan Beban Penyusutan/Deduction of

Depreciation Expense

Pengurangan Beban Pajak Penghasilan/

Deduction of Income Taxes

Penambahan Laba Tahun Berjalan/Addition of Current

Year IncomeTahun yang berakhir pada tanggal

31 Desember 2014/ For the year ended December 31, 2014 24.059 (6.015) 18.044

Efektif tanggal 1 Januari 2015, Entitas Induk dan DLSkembali mengubah estimasi masa manfaat ekonomis atas beberapa aset tetap bangunan dari sebelumnya 20 tahun menjadi 40 tahun. Entitas Induk juga mengubah estimasi masa manfaat ekonomis atas beberapa mesin dari yang sebelumnya 4 - 8 tahun menjadi 4 - 20 tahun. Perubahan estimasi ini diterapkan secara prospektif. Perubahan estimasi masa manfaat ekonomis ini dilakukan setelah mempertimbangkan efek pemeliharaan dan perbaikan yang dilakukan oleh Entitas Induk dan DLS.

Effective January 1, 2015, the Company and DLS made another change on the estimated useful lives of some buildings from previously 20 years into 40 years. The Company also changed the estimated useful lives of some machineries from previously 4 - 8 years into 4 - 20 years. Changes in these estimates are applied prospectively. Changes in these estimates are applied after considering the effect of repair and maintenance carried out by the Company and DLS.

Pengaruh atas perubahan estimasi masa manfaat ekonomis ini diakui secara prospektif pada laba rugi periode terjadinya perubahan tersebut sebagai berikut:

The impact of the changes in estimated useful lives are recognized prospectively in the profit or loss of the period of change as follows:

Pengurangan Beban Penyusutan/Deduction of

Depreciation Expense

Pengurangan Beban Pajak Penghasilan/

Deduction of Income Taxes

Penambahan Laba Tahun Berjalan/Addition of Current

Year IncomePeriode enam bulan yang berakhir

pada tanggal 30 Juni 2015 / For six-month period ended June 30, 2015 16.880 (4.220) 12.660

— F-36 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

23

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)

g. Aset Tetap (lanjutan) g. Fixed Assets (continued)

Dampak atas perubahan estimasi akuntansi ini di masa yang akan datang adalah akan terdapat penurunan jumlah penyusutan yang dibebankan pada harga pokok penjualan dan beban umum dan administrasi, serta akan terdapat beda waktu atas beban penyusutan bangunan dan mesin antara laba rugi komersial dan laba rugi fiskal.

The impact of changes in accounting estimates in the future is there will be a decrease in the amount of depreciation charged to cost of goods sold and general and admistrative expenses, and there will be temporerdifferences on depreciation expense of the building and machineries between commercial and fiscal income.

Manajemen berkeyakinan bahwa perubahan tersebut akan merefleksikan metode penyusutan dan estimasiatas masa manfaat ekonomis aset tetap Grup yanglebih akurat.

Management believes that such changes will reflect more accurate estimate on the Group’s fixed assets’depreciation method and useful lives.

Metode penyusutan dan estimasi masa manfaat aset tetap Grup adalah sebagai berikut:

The Group’s depreciation method and estimation of useful lives are as follows:

Metode penyusutan/ Depreciation method Sebelum 1 Januari 2014/ Sesudah 1 Januari 2014/ Before January 1, 2014 After January 1, 2014 Bangunan/Buildings Garis lurus/Straight line Garis lurus/Straight-line

Kendaraan/ Vehicles Saldo menurun ganda dan Garis lurus/ Garis lurus/Straight-line Double declining and Straight-line

Peralatan/ Equipments Saldo menurun ganda dan Garis lurus/ Garis lurus/Straight-lineDouble declining and Straight-line

Mesin/ Machineries Saldo menurun ganda dan Garis lurus/ Garis lurus/Straight-line Double declining and Straight-line Estimasi masa manfaat (tahun)/ Estimated useful lives (years) Sebelum 1 Januari 2015/ Sesudah 1 Januari 2015/ Before January 1, 2015 After January 1, 2015 Bangunan/Buildings 10 - 20 10 - 40

Kendaraan/Vehicles 4 - 8 4 - 8 Peralatan/Equipments 3 - 8 3 - 8

Mesin/Machineries 4 - 8 4 - 20

Aset tetap - tanah diukur menggunakan nilai wajar. Nilai wajar tanah disajikan berdasarkan penilaian yang dilakukan oleh penilai independen. Penilaian atas aset tersebut dilakukan setahun sekali untuk memastikan bahwa nilai wajar aset yang direvaluasi tidak berbeda secara material dengan jumlah tercatatnya.

Fixed asset - land measured using fair value. The fair value of the land is presented based on an assessment conducted by an independent appraiser. Assessment of assets is carried out once a year to ensure that the fair value of revalued assets does not differ materially from its carrying amount.

— F-37 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

24

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)

g. Aset Tetap (lanjutan) g. Fixed Assets (continued)

Kenaikan yang berasal dari revaluasi tanah langsung dikreditkan ke akun ”Surplus Revaluasi Tanah” pada penghasilan komprehensif lain, kecuali sebelumnya penurunan revaluasi atas aset yang sama pernah diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian. Dalam hal ini,kenaikan revaluasi sebesar penurunan nilai aset akibat revaluasi tersebut, dikreditkan dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian. Penurunan jumlah tercatat yang berasal dari revaluasi tanah dibebankan dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian apabila penurunan tersebut melebihi saldo surplus revaluasi aset yang bersangkutan, jika ada.

The increase derived from the revaluation of land iscredited directly to the "Revaluation Surplus from Land"account in other comprehensive income, unless previous revaluation decrease on the same asset hadbeen recognized in the consolidated statements ofprofit or loss and other comprehensive income. In this case, the revaluation increment equivalent to thedecrease in the value of assets due to the revaluation, is credited in the consolidated statements of profit or loss and other comprehensive income. A decrease in the carrying amount derived from the revaluation of land are charged in the consolidated statements of profit or loss and other comprehensive income when the decline exceeds the revaluation surplus balance of the asset concerned, if any.

Ketika diperoleh pertama kali, tanah diakui sebesar biaya perolehan pada akun “Aset Tetap” dan tidak disusutkan. Biaya pengurusan atas perpanjangan atau pembaruan legal hak atas tanah diamortisasi sepanjang mana yang lebih pendek antara umur hukum hak dengan umur ekonomis tanah.

When first acquired, land are recognized at cost on "Fixed Assets" account and are not depreciated. Thecost for the extension or renewal of legal land rights are amortized over the shorter term of the legal term to the economic useful lives of the land.

Jumlah tercatat aset tetap dihentikan pengakuannya pada saat dilepaskan atau saat tidak ada manfaat ekonomis masa depan yang diharapkan dari penggunaannya. Saat aset dijual atau dilepaskan, harga perolehan, akumulasi penyusutan dan kerugian penurunan nilai dikeluarkan dari akun. Laba atau rugi yang timbul dari penghentian pengakuan aset diakui dalam laporan laba rugi dan penghasilan komprehensiflain konsolidasian pada periode aset tersebut dihentikan pengakuannya.

The carrying value of fixed assets is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. When assets are sold or retired, the cost, accumulated depreciation and any impairment loss are eliminated from the accounts. Any gain or loss arising from derecognition of fixed assets is included in the consolidated statements of profit or loss and other comprehensive income in the period the item is derecognized.

Beban pemeliharaan dan perbaikan dibebankan pada operasi pada saat terjadinya. Beban pemugaran dan penambahan dalam jumlah besar dikapitalisasi kepada jumlah tercatat aset tetap terkait bila besar kemungkinan bagi Grup manfaat ekonomi masa depan menjadi lebih besar dari standar kinerja awal yang ditetapkan sebelumnya dan disusutkan sepanjang sisamanfaat aset tetap terkait.

Repair and maintenance expenses are taken to the profit or loss when these are incurred. The cost of major renovation and restoration is included in the carrying amount of the related fixed asset when it is probable that future economic benefits in excess of the originally assessed standard of performance of the existing asset will flow to the Group, and is depreciatedover the remaining useful lives of the related assets.

Nilai residu, estimasi masa manfaat dan metode penyusutan direview dan disesuaikan, setiap akhir periode, bila diperlukan.

The residual values, estimated useful lives, and depreciation method are reviewed and adjusted, at the end of each period, if necessary.

Aset tetap dalam pembangunan Construction in progress

Aset tetap dalam pembangunan merupakan aset tetap dalam tahap penyelesaian, yang dinyatakan pada biaya perolehan dan tidak disusutkan. Akumulasi biaya akan direklasifikasi ke akun aset tetap yang bersangkutan dan akan disusutkan pada saat konstruksi selesai secara substansial dan aset tersebut telah siap digunakan sesuai tujuannya.

Construction in progress represents fixed assets under construction which is stated at cost and is not depreciated. The accumulated costs will be reclassified to the respective fixed assets account and will be depreciated when the construction is substantially completed and the asset is ready for its intended use.

— F-38 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

25

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)

h. Investasi Pada Entitas Asosiasi h. Investment in Associates

Grup menerapkan PSAK No. 15 (revisi 2013), “Investasi pada Entitas Asosiasi dan Ventura Bersama”.

The Group applied PSAK No. 15 (revised 2013), “Investments in Associates and Joint Ventures”.

Investasi Grup pada Entitas Asosiasi dicatat dengan mengunakan metode ekuitas. Entitas Asosiasi adalah Entitas dimana Grup mempunyai pengaruh signifikan. Dalam metode ekuitas, biaya investasi ditambah atau dikurangi dengan bagian Grup atas laba atau rugi bersih, dan dikurangi dividen yang diterima dari investee sejak tanggal perolehan.

The Group’s investment in its Associates is accounted for using the equity method. An Associates is an Entity in which the Group has significant influence. Under the equity method, the cost of investment is increased or decreased by the Group’s share in net earnings or losses of, and dividends received from the investee since the date of acquisition.

Laporan laba rugi dan penghasilan komprehensif lainkonsolidasian mencerminkan bagian atas hasil operasi dari Entitas Asosiasi. Bila terdapat perubahan yang diakui langsung pada ekuitas dari Entitas Asosiasi, Grup mengakui bagiannya atas perubahan tersebut dan mengungkapkan hal ini, jika berkaitan, dalam laporan perubahan ekuitas konsolidasian. Laba atau rugi yang belum direalisasi sebagai hasil dari transaksi-transaksi antara Grup dengan Entitas Asosiasi dieliminasi pada jumlah sesuai dengan kepentingan Entitas Induk pada Entitas Asosiasi.

The consolidated statements of profit or loss and other comprehensive income reflects the results of operations of the Associates. If there has been a change recognized directly in the equity of the Associates, the Group recognizes its share of any such changes and discloses this, when applicable, in the consolidated statements of changes in equity. Unrealized gains or losses resulting from transactions between the Group and the Associates are eliminated to the extent of the Group's interest in the Associates.

Laporan keuangan Entitas Asosiasi disusun dengan mengunakan periode pelaporan yang sama dengan Grup.

The financial statements of the Associates are prepared on the same reporting period as the Group.

Grup menentukan apakah perlu untuk mengakuitambahan penurunan nilai atas investasi Grup pada Entitas Asosiasi. Grup menentukan pada setiap tanggal pelaporan apakah terdapat bukti yang obyektif yang mengindikasikan bahwa investasi pada Entitas Asosiasi mengalami penurunan nilai. Dalam hal ini, Grup menghitung jumlah penurunan nilai berdasarkan selisih antara jumlah terpulihkan atas investasi pada Entitas Asosiasi dan nilai tercatatnya dan mengakuinya dalam laporan laba rugi dan penghasilan komprehensiflain konsolidasian.

The Group determines whether it is necessary to recognize an additional impairment loss on the Group’s investment in its Associates. The Group determines at each reporting date whether there is any objective evidence that the investment in the Associates is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the investment in Associatesand its carrying value, and recognizes the amount in the consolidated statements of profit or loss and other comprehensive income.

Jika bagian Grup atas rugi Entitas Asosiasi sama dengan atau melebihi kepentingannya pada Entitas Asosiasi, maka Grup menghentikan pengakuan bagiannya atas rugi lebih lanjut. Kepentingan pada Entitas Asosiasi adalah jumlah tercatat investasi padaEntitas Asosiasi dengan metode ekuitas ditambah dengan setiap kepentingan jangka panjang yang secara substansi, membentuk bagian investasi neto investor pada Entitas Asosiasi.

If the Group’s share of losses of an Associate equals or exceeds its interest in the Associates, the Group discontinue to recognize its share of further losses. The interest in an Associates is the carrying amount of the investment in the Associates under the equity method together with any long - term interest that, in substance, formed part of the investor’s net investment in the Associates.

i. Penurunan Nilai Aset Non-keuangan i. Impairment of Non-financial Assets

Grup menerapkan PSAK No. 48 (revisi 2014), “Penurunan Nilai Aset”. Penerapan standar tersebut tidak berdampak material terhadap laporan keuangankonsolidasian.

The Group applied PSAK No. 48 (revised 2014), “Impairment of Asset”. The implementation of this standard does not have significant impact on theconsolidated financial statements.

— F-39 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

26

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

i. Penurunan Nilai Aset Non-keuangan (lanjutan) i. Impairment of Non-financial Assets (continued)

Pada setiap akhir periode pelaporan, Grup menilai apakah terdapat indikasi suatu aset mengalami penurunan nilai. Jika terdapat indikasi tersebut atau pada saat pengujian penurunan nilai aset diperlukan, maka Grup membuat estimasi formal jumlah terpulihkan aset tersebut.

The Group assesses at each annual reporting period whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount.

Jumlah terpulihkan yang ditentukan untuk aset individual adalah jumlah yang lebih tinggi antara nilai wajar aset atau Unit Penghasil Kas (UPK) dikurangi biaya untuk menjual dengan nilai pakainya, kecuali aset tersebut tidak menghasilkan arus kas masuk yang sebagian besar independen dari aset atau kelompok aset lain. Jika nilai tercatat aset lebih besar daripada nilai terpulihkannya, maka aset tersebut mengalami penurunan nilai dan nilai tercatat aset diturunkan menjadi sebesar nilai terpulihkannya. Dalam menghitung nilai pakai, estimasi arus kas masa depan bersih didiskontokan ke nilai kini dengan menggunakan tingkat diskonto sebelum pajak yang menggambarkan penilaian pasar terkini atas nilai waktu dari uang dan risiko spesifik dari aset. Jika tidak terdapat transaksi tersebut, Grup menggunakan model penilaian yang sesuai untuk menentukan nilai wajar aset. Perhitungan-perhitungan ini dikuatkan oleh penilaian berganda atau indikasi nilai wajar yang tersedia.

An asset’s recoverable amount is the higher of an asset’s or Cash Generating Units (CGU) fair value less costs to sell and its value in use, and is determined for an individual asset unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. If the carrying amount of an asset exceed its recoverable amount, the asset is considered impaired and is written down to its recoverable amount . In assessing the value in use, the estimated net future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If no such transactions can be identified, an appropriate valuation model is used by Group to determine the fair value of the assets. These calculations are corroborated by valuation multiples or other available fair value indicators.

Dalam menentukan nilai wajar dikurangi biaya untuk menjual, digunakan harga penawaran pasar terakhir, jika tersedia. Kerugian penurunan nilai dari operasi yang dilanjutkan, jika ada, diakui pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian sesuai dengan kategori beban yang konsisten dengan fungsi dari aset yang diturunkan nilainya.

In determining fair value less costs to sell, recent market transactions are taken into account, if available. Impairment losses of continuing operations, if any, are recognized in the consolidated statements of profit or loss and other comprehensive income under expense categories that are consistent with the functions of the impaired assets.

Penilaian dilakukan pada akhir setiap periode pelaporan tahunan apakah terdapat indikasi bahwa rugi penurunan nilai yang telah diakui dalam periode sebelumnya untuk suatu aset mungkin tidak ada lagi atau mungkin telah menurun. Jika indikasi dimaksud ditemukan, maka entitas mengestimasi jumlah terpulihkan aset tersebut. Kerugian penurunan nilai yang telah diakui dalam periode sebelumnya untuk suatu aset dibalik hanya jika terdapat perubahan asumsi-asumsi yang digunakan untuk menentukan jumlah terpulihkan aset tersebut sejak rugi penurunan nilai terakhir diakui. Dalam hal ini, jumlah tercatat aset dinaikkan ke jumlah terpulihkannya. Pembalikan tersebut dibatasi sehingga jumlah tercatat aset tidak melebihi jumlah terpulihkannya maupun jumlah tercatat, neto setelah penyusutan, seandainya tidak ada rugi penurunan nilai yang telah diakui untuk aset tersebut pada tahun sebelumnya. Pembalikan rugi penurunan nilai diakui dalam laporan laba rugi danpenghasilan komprehensif lain konsolidasian.

An assessment is made at each annual reporting period as to whether there is any indication that previously recognized impairment losses recognized for an asset may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognized impairment loss for an asset is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. The reversal is limited so that the carrying amount of the assets does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Reversal of an impairment loss is recognized in the consolidated statements of profit or loss and other comprehensive income.

— F-40 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

27

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

j. Imbalan Kerja Karyawan j. Employees’ Benefits

Efektif 1 Januari 2015, Grup menerapkan PSAK No. 24 (revisi 2013), “Imbalan Kerja”, untuk mencatat kewajiban imbalan kerja yang tidak didanai berdasarkan Undang-undang No. 13/2003 tanggal 25 Maret 2003 (Undang-undang).

Effective January 1, 2015, Group applied PSAK No. 24 (revised 2013), "Employees’ Benefits", to recognize an unfunded employees’ benefits liabilities in accordance with Labor Law No. 13/2003 dated March 25, 2003 (the Law).

Menurut PSAK No. 24 (revisi 2013), beban imbalan kerja berdasarkan Undang-undang ditentukan dengan metode penilaian aktuarial “Projected Unit Credit”.

Under PSAK No. 24 (revised 2013), the cost of providing employees’ benefits under the Law is determined using the “Projected Unit Credit” valuation method.

Biaya jasa kini dari program pensiun imbalan pasti diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian pada beban imbalan kerja dimana mencerminkan peningkatan kewajiban imbalan pasti yang dihasilkan dari jasa karyawan dalam tahun berjalan.

The current service cost of the defined benefit plan is recognized in the consolidated statements of profit or loss and other comprehensive income in employeesbenefits expense which reflects the increase in the defined benefit obligation resulting from employeesservice in the current year.

Biaya jasa lalu diakui secara langsung di laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Past service costs are recognized immediately in the consolidated statements of profit or loss and other comprehensive income.

Keuntungan dan kerugian aktuarial yang timbul dari penyelesaian dan perubahan asumsi aktuaria sebagai kelebihan atas dari nilai wajar aset program atau nilai kini liabilitas imbalan pasti seluruhnya dibebankan atau dikreditkan ke ekuitas pada penghasilan komprehensiflainnya pada periode di mana terjadinya perubahantersebut.

After the applied this revised PSAK actuarial gain and losses arising from experience adjustments and changes in actuarial assumptions of the fair value of plan assets or the present value of the defined benefit obligations are charged or credited to equity in other comprehensive income in period in which they arise.

Sebelum penerapan PSAK No. 24 (revisi 2013) ini,keuntungan dan kerugian aktuarial yang timbul dari penyelesaian dan perubahan asumsi aktuaria sebagai kelebihan atas nilai yang lebih tinggi antara 10% darinilai wajar aset program atau 10% dari nilai kini liabilitas imbalan pasti pada awal periode diamortisasi dan diakui sebagai biaya atau keuntungan selama perkiraan rata-rata sisa periode jasa pegawai yang masuk program pensiun.

Before the application of this revised PSAK No. 24 (revised 2013), actuarial gain and losses arising fromexperience adjustments and changes in actuarial assumptions in excess of the greater of 10% of the fair value of plan assets or 10% of the present value of the defined benefit obligations at the beginning of the period are amortized and recognized as expense or gain over the expected average remaining service periods of qualified employees.

Keuntungan atau kerugian atas kurtailmen atau penyelesaian suatu program imbalan pasti diakui ketika kurtailmen atau penyelesaian terjadi.

Gains or losses on the curtailment or settlement of a defined benefit plan are recognized when the curtailment or settlement occurs.

Dampak penerapan PSAK revisi ini diterapkan secara retrospektif (Catatan 4).

The impact of application of this revised PSAK is applied retrospectively (Note 4).

k. Pengakuan Pendapatan dan Beban k. Revenue and Expenses Recognition

Grup menerapkan PSAK No. 23 (revisi 2010), “Pendapatan”.

The Group applied PSAK No. 23 (revised 2010), “Revenues”.

Pendapatan diakui bila besar kemungkinan manfaat ekonomi akan diperoleh Grup dan jumlahnya dapat diukur secara handal.

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.

— F-41 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

28

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

k. Pengakuan Pendapatan dan Beban (lanjutan) k. Revenue and Expenses Recognition (continued)

Grup mengevaluasi pengakuan pendapatan dan beban dengan kriteria tertentu sebagai berikut:

The Group evaluates the recognition of revenues and expenses with certain criteria as follows:

Pendapatan dari penjualan barang yang timbul dari pengiriman fisik produk-produk Grup diakui bila risiko dan manfaat yang signifikan telah berpindah kepada pelanggan, yang bersamaan dengan pengiriman dan penerimaan barang.

Revenue from sales of goods arising from physical delivery of the Group’s product are recognized when the significant risks and rewards have been transferred to the customer, that generally occurs at the same time with the delivery and receipt of goods.

Pendapatan bunga yang timbul dari bank dan deposito yang dimiliki oleh Grup diakui pada saat terjadinya.

Interest income arising from the banks, and deposits held by the Group are recognized when earned.

Beban diakui pada saat terjadinya (dasar akrual). Expenses are recognized when incurred (accrual basis).

l. Transaksi dan Saldo Dalam Mata Uang Asing l. Foreign Currency Transactions and Balances

Grup menerapkan PSAK No. 10 (revisi 2010), “Pengaruh Perubahan Kurs Valuta Asing”.

The Group applied PSAK No. 10 (revised 2010), “The Effects of Changes in Foreign Exchange Rates”.

Transaksi dalam mata uang asing dicatat dalam mata uang fungsional berdasarkan nilai tukar yang berlaku pada saat transaksi dilakukan. Pada tanggal laporan posisi keuangan konsolidasian, aset dan liabilitas moneter dalam mata uang asing disesuaikan untuk mencerminkan kurs yang berlaku pada tanggal tersebut dan laba atau rugi kurs yang timbul dikreditkan atau dibebankan pada usaha periode berjalan.

Transactions involving foreign currencies are recorded in the functional currency at the rates of exchange prevailing at the time the transactions are made. At consolidated statements of financial position date, monetary assets and liabilites denominated in foreign currencies are adjusted to reflect the prevailing exchange rates at such date and the resulting gains or losses are credited or charged to current operations.

Akun KCM, KCP, KVC dan KINT, merupakan Entitas Anak di luar negeri, dijabarkan dalam mata uang Rupiah dengan menggunakan kurs tengah yang berlaku pada tanggal laporan keuangan untuk akun posisi keuangan dan kurs rata-rata selama periode berjalan untuk akun laba rugi. Selisih kurs karena penjabaran laporan keuangan KCM, KCP, KVC dan KINT disajikan sebagai bagian dari “Penghasilan komprehensif lain” pada bagian ekuitas dari laporan posisi keuangan konsolidasian.

The account of KCM, KCP, KVC and KINT, a foreign Subsidiaries, was translated into Rupiah amounts at the middle rates of exchange prevailing at statementsof financial position date for financial position accounts and the average rates during the period for profit orloss accounts. The resulting difference arising from the translations of the financial statements of KCM, KCP, KVC and KINT are presented as “Other comprehensive income” under the equity section of the consolidated statements of financial position.

Pada tanggal 30 Juni 2015 dan 2014, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011, nilai tukar yang digunakan adalah sebagai berikut, yang dihitung berdasarkan rata-rata kurs beli dan jual dari kurs transaksi Bank Indonesia pada tanggal tersebut:

As of June 30, 2015 and 2014, December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011,the exchange rate used is as follows, which is calculated based on the average buying and selling rate of Bank Indonesia transaction rate on that date:

— F-42 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

29

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

l. Transaksi dan Saldo Dalam Mata Uang Asing(lanjutan)

l. Foreign Currency Transactions and Balances(continued)

30 Juni 2015/June 30,

2015

31 Desember 2014/

December 31,2014

30 Juni 2014/

June 30,2014

31 Desember 2013/

December 31,2013

31 Desember 2012/

December 31,2012

1 Januari 2012/31 Desember

2011/ January 1, 2012/December

31, 2011Euro/Euro (EUR) 14.920 15.133 16.333 16.821 12.810 11.739Dolar Amerika Serikat/United

States Dollar (USD) 13.332 12.440 11.969 12.189 9.670 9.068Dolar Singapura/

Singapore Dollar (SGD) 9.895 9.422 9.583 9.628 7.907 6.974Dolar Brunei Darusallam/

Brunei Darusallam Dollar(BND) 9.895 9.422 9.583 9.628 7.907 6.974

Ringgit Malaysia/Malaysian Ringgit (MYR) 3.527 3.561 3.729 3.708 3.160 2.853

Peso Filipina/Philippine Peso(PHP) 295 278 274 275 235 207

Yen Jepang/Japanese Yen(JPY) 109 104 118 116 112 117

Dong Vietnam/Vietnam Dong(VND) 0,61 0,58 0,56 0,58 0,47 -

m. Beban ditangguhkan m. Deferred Charges

Beban-beban yang terjadi sehubungan dengan rencana Entitas Induk untuk melakukan Penawaran Umum Perdana Saham ditangguhkan dan akan disajikan sebagai pengurang akun Tambahan Modal Disetor setelah proses Penawaran Umum Perdana Saham dilaksanakan.

Expenses incurred in connection with the Company’splans to conduct Initial Public Offering were deferred and will be presented as deduction from Additional Paid-in Capital account after the Initial Public Offeringis conducted.

n. Sewa n. Lease

Berdasarkan PSAK No. 30 (revisi 2011), “Sewa”, apabila sewa mengandung elemen tanah dan bangunan sekaligus, entitas harus menelaah klasifikasi untuk setiap elemen secara terpisah apakah sebagai sewa pembiayaan atau sewa operasi.

In accordance with PSAK No. 30 (Revised 2011), “Lease”, when a lease includes both land and building elements, an entity should assess the classification of each element separately whether as a finance or an operating lease.

Grup mengklasifikasikan sewa berdasarkan sejauh mana risiko dan manfaat yang terkait dengan kepemilikan aset sewa pembiayaan berada pada lessor atau lessee, dan pada substansi transaksi daripada bentuk kontraknya.

The Group classify leases based on the extent to which risks and rewards incidental to the ownership of a leased asset are vested upon the lessor or the lessee, and the substance of the transaction rather than the form of the contract.

Sewa Pembiayaan - sebagai Lessee Finance Lease - as Lessee

Suatu sewa diklasifikasikan sebagai sewa pembiayaan jika sewa tersebut mengalihkan secara substansi seluruh risiko dan manfaat yang terkait dengan kepemilikan aset sewaan. Sewa tersebut dikapitalisasi sebesar nilai wajar aset sewaan atau sebesar nilai kini dari pembayaran sewa minimum, jika nilai kini lebih rendah dari nilai wajar. Pembayaran sewa minimum harus dipisahkan antara bagian yang merupakan beban keuangan dan bagian yang merupakan pelunasan liabilitas, sedemikian rupa sehingga menghasilkan suatu tingkat suku bunga periodik yang konstan atas saldo liabilitas. Beban keuangan dibebankan langsung ke operasi periode/tahun berjalan.

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of the leased assets. Such leases are capitalized at the inception of the lease at the fair value of the leased property or, if lower, at the present value of minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of liability. Finance cost are charged directly to profit or loss in the current period/year.

— F-43 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

30

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

n. Sewa (lanjutan) n. Lease (continued)

Sewa Pembiayaan - sebagai Lessee (lanjutan) Finance Lease - as Lessee (continued)

Jika terdapat kepastian yang memadai bahwa lesseeakan mendapatkan hak kepemilikan pada akhir masa sewa, aset sewaan disusutkan selama estimasi masa manfaat aset tersebut. Jika tidak terdapat kepastian tersebut, maka aset sewaan disusutkan selama periode yang lebih pendek antara umur manfaat aset sewaan atau masa sewa. Laba atau rugi yang timbul dari transaksi jual dan sewa-balik kembali ditangguhkan dan diamortisasi selama sisa masa sewa.

If there is reasonable certainty that the lessee will obtain ownership by the end of the lease term, the leased asset is depreciated over the estimated useful lives of the assets. Capitalized leased assets are depreciated over the shorter of the estimated useful lives of the asset or the lease term, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term. Any excess of sales proceeds over the carrying amount of an asset in a sale-and-leaseback transaction is deferred and amortized over the lease term.

Sewa Operasi - sebagai Lessee Operating Lease - as Lessee

Suatu sewa diklasifikasikan sebagai sewa operasi jika sewa tidak mengalihkan secara substansi seluruh risiko dan manfaat yang terkait dengan kepemilikan aset. Dengan demikian, pembayaran sewa diakui sebagai beban dengan dasar garis lurus (straight-line basis) selama masa sewa.

A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of the leased asset. Accordingly, the related lease payments are recognized as expense on a straight-line basis over the lease term.

Sewa Operasi - sebagai Lessor Operating Lease - as Lessor

Sewa di mana Grup tidak mengalihkan secara substansi seluruh risiko dan manfaat yang terkait dengan kepemilikan aset diklasifikasikan sebagai sewa operasi.

Leases where the Group do not transfer substantially all the risks and rewards of ownership of the asset are classified as operating leases.

o. Perpajakan o. Taxation

Grup menerapkan PSAK No. 46 (revisi 2014), “Pajak Penghasilan”. Penerapan standar tersebut tidak berdampak material terhadap laporan keuangankonsolidasian.

The Group applied PSAK No. 46 (revised 2014), “Income Taxes”. The implementation of this standard does not have significant impact on the consolidated financial statements.

Beban pajak kini ditetapkan berdasarkan laba kena pajak periode berjalan.

Current tax expense is based on taxable income for the current period.

Aset dan liabilitas pajak tangguhan diakui atas perbedaan temporer dari aset dan liabilitas antara pelaporan komersial dan pajak pada setiap tanggal laporan. Manfaat pajak masa mendatang, seperti rugi fiskal yang dapat dikompensasi, diakui sepanjang besar kemungkinan manfaat pajak tersebut dapat direalisasikan.

Deferred tax assets and liabilities are recognized for temporary differences between assets and liabilities of financial and tax reporting at each reporting date. Future tax benefits, such as unused tax losses, are recognized to the extent such benefits possibilities can be realized.

Jumlah tercatat aset pajak tangguhan dikaji ulang pada akhir periode pelaporan, dan mengurangi jumlah tercatat jika kemungkinan besar laba kena pajak tidak lagi tersedia dalam jumlah yang memadai untuk mengkompensasi sebagian atau seluruh aset pajak tangguhan. Aset pajak tangguhan yang belum diakui dinilai kembali pada setiap akhir periode pelaporan dan diakui sepanjang kemungkinan besar laba kena pajak mendatang akan memungkinkan aset pajak tangguhan tersedia untuk dipulihkan.

The carrying amount of a deferred tax asset is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the benefit of that deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable income will allow the deferred tax assets to be recovered.

— F-44 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

31

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

o. Perpajakan (lanjutan) o. Taxation (continued)

Aset dan liabilitas pajak tangguhan dihitung berdasarkan tarif yang akan dikenakan pada periodesaat aset direalisasikan atau liabilitas tersebut diselesaikan, berdasarkan undang-undang pajak yang berlaku atau berlaku secara substantif pada akhir periode laporan keuangan. Pengaruh pajak terkait dengan penyisihan dan/atau pemulihan semua perbedaan temporer selama periode berjalan, termasuk pengaruh perubahan tarif pajak, diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian periode berjalan.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax laws that have been enacted or substantively enacted at the end of reporting period. The related tax effects of the provisions for and/or reversals of all temporary differences during the period, including the effect of change in tax rates, are included in the consolidated statements of profit or loss and other comprehensive income of the current period.

Aset dan liabilitas pajak tangguhan disajikan secara saling hapus saat hak yang dapat dipaksakan secara hukum ada untuk saling hapus aset pajak kini dan liabilitas pajak kini, atau aset pajak tangguhan dan liabilitas pajak tangguhan berkaitan dengan entitas kena pajak yang sama, atau Grup bermaksud untuk menyelesaikan aset dan liabilitas pajak kini dengan dasar neto.

Deferred tax assets and liabilities are offset when a legally enforceable right exists to offset current tax assets against current tax liabilities, or the deferred tax assets and the deferred tax liabilities relate to the same taxable entity, or the Group intends to settle its current assets and liabilities on a net basis.

Koreksi terhadap liabilitas perpajakan diakui pada saat surat ketetapan pajak diterima atau, jika Grup mengajukan keberatan pada saat keputusan atas keberatan tersebut telah ditetapkan.

Amendments to tax obligations are recorded when an assessment is received or, if appealed against by the Group, when the result of the appeal is determined.

p. Aset Keuangan dan Liabilitas Keuangan p. Financial Assets and Liabilities

Efektif 1 Januari 2015, Grup menerapkan PSAK No. 50(revisi 2014), “Instrumen Keuangan: Penyajian”, PSAKNo. 55 (revisi 2014), “Instrumen Keuangan: Pengakuan dan Pengukuran”, PSAK No. 60 (revisi 2014), “Instrumen Keuangan: Pengungkapan”. Penerapan standar tersebut tidak berdampak material terhadap laporan keuangan konsolidasian.

Effective January 1, 2015, the Group applied PSAK No. 50 (revised 2014), “Financial Instruments: Presentation”, PSAK No. 55 (revised 2014), “Financial Instruments: Recognition and Measurement”, PSAKNo. 60 (revised 2014), “Financial Instruments: Disclosures”. The implementation of this standard does not have significant impact on the consolidated financial statements.

Klasifikasi Classification

i. Aset Keuangan i. Financial Assets

Aset keuangan diklasifikasikan sebagai aset keuangan yang diukur pada nilai wajar melalui laporan laba rugi dan penghasilan komprehensif lain, pinjaman yang diberikan dan piutang, investasi dimiliki hingga jatuh tempo, atau aset keuangan tersedia untuk dijual, jika sesuai. Grup menentukan klasifikasi atas aset keuangan pada saat pengakuan awal.

Financial assets are classified as financial assets at fair value through consolidated statements of profit or loss and other comprehensive income,loans and receivables, held to maturity investments, or available for sale financial assets. The Group determines the classification of their financial assets at initial recognition.

Aset keuangan Grup terdiri dari kas dan bank,piutang usaha, piutang lain-lain, deposito yang dibatasi penggunaannya, piutang pihak berelasidan aset tidak lancar lainnya - uang jaminan.

The Group financial assets consist of cash andbanks, trade receivables, other receivables, restricted deposits, due from related parties and other non current assets - refundable deposits.

— F-45 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

32

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

p. Aset Keuangan dan Liabilitas Keuangan (lanjutan) p. Financial Assets and Liabilities (continued)

Klasifikasi (lanjutan) Classification (continued)

ii. Liabilitas Keuangan ii. Financial Liabilities

Liabilitas keuangan diklasifikasikan sebagai liabilitas keuangan yang diukur pada nilai wajar melalui laporan laba rugi dan penghasilan komprehensif lain dan liabilitas keuangan yang dicatat berdasarkan biaya perolehan diamortisasi. Grup menentukan klasifikasi atas liabilitas keuangan pada saat pengakuan awal.

Financial liabilities are classified as financial liabilities at fair value through consolidated statements of profit or loss and other comprehensive income or financial liabilities measured at amortized cost, as appropriate. The Group determines the classification of its financial liabilities at initial recognition.

Liabilitas keuangan Grup terdiri dari utang bank jangka pendek, utang usaha, utang dividen, utang lain-lain, beban masih harus dibayar, uang muka penjualan, utang pihak berelasi, utang bank jangka panjang, utang pembiayaan konsumen dan utang sewa pembiayaan.

The Group financial liabilities consist of short-term bank loans, trade payables, dividend payables, other payables, accrued expenses, advance from customers, due to related parties, long-term bank loans, consumer financing payables and finance lease payables.

Pengakuan dan Pengukuran Recognition and Measurement

i. Aset Keuangan i. Financial Assets

Aset keuangan pada awalnya diakui sebesar nilai wajarnya dalam hal investasi yang tidak diukur pada nilai wajar melalui laporan laba rugi dan penghasilan komprehensif lain konsolidasianditambah biaya transaksi yang dapat diatribusikan secara langsung. Pengukuran aset keuangan setelah pengakuan awal tergantung pada klasifikasi aset.

Financial assets are initially recognized at fair value in the case of investments not at fair value through consolidated statements of profit or loss and other comprehensive income, plus transaction costs which are directly attributable. Measurement of financial assets after initial recognition depends on the classification of assets.

Seluruh pembelian dan penjualan yang lazim pada aset keuangan diakui atau dihentikan pengakuannya pada tanggal perdagangan - yaitu tanggal pada saat Grup berkomitmen untuk membeli atau menjual aset. Pembelian atau penjualan yang lazim adalah pembelian atau penjualan aset keuangan yang mensyaratkan penyerahan aset dalam kurun waktu umumnya ditetapkan dengan peraturan atau kebiasaan yang berlaku di pasar.

All regular way purchases and sales of financialassets are recognized or derecognized on the trade date - the date that the Group commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace concerned.

Pinjaman yang diberikan dan piutang Loans and receivables

Pinjaman yang diberikan dan piutang adalah aset keuangan nonderivatif dengan pembayaran tetap atau telah ditentukan dan tidak mempunyai kuotasi di pasar aktif. Setelah pengakuan awal, aset keuangan tersebut dicatat pada biaya perolehan diamortisasi menggunakan metode suku bunga efektif kecuali jika dampak diskonto tidak material, maka dinyatakan pada biaya perolehan. Keuntungan atau kerugian diakui pada laporan laba rugi dan penghasilan komprehensif lainkonsolidasian ketika aset keuangan tersebut dihentikan pengakuannya atau mengalami penurunan nilai, dan melalui proses amortisasi.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Subsequent to initial recognition, such financial assets are carried at amortized cost using the effective interest rate method less impairment, except for those assets in which the interest calculation is not material. Gains or losses are recognized in the consolidated statements of profit or loss and other comprehensive income, when the financial assets are derecognized or impaired, as well as through the amortization process.

— F-46 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

33

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

p. Aset Keuangan dan Liabilitas Keuangan (lanjutan) p. Financial Assets and Liabilities (continued)

Pengakuan dan Pengukuran (lanjutan) Recognition and Measurement (continued)

ii. Liabilitas Keuangan ii. Financial Liabilities

Liabilitas keuangan diakui pada awalnya sebesar nilai wajar, dan dalam hal pinjaman dan utang, termasuk biaya transaksi yang dapat diatribusikan secara langsung.

Financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, inclusive of directly attributable transaction costs.

Liabilitas keuangan yang diukur pada biaya perolehan diamortisasi

Financial liabilities measured at amortized cost

Liabilitas keuangan yang diukur pada biaya perolehan diamortisasi, selanjutnya setelah pengakuan awal diukur pada biaya perolehan diamortisasi, menggunakan suku bunga efektif kecuali jika dampak diskonto tidak material, maka dinyatakan pada biaya perolehan. Beban bunga diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian. Keuntungan atau kerugian diakui pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian ketika liabilitas keuangan tersebut dihentikan pengakuannya dan melalui proses amortisasi.

Financial liabilities measured at amortized cost, subsequent after the initial recognition are measured at amortized cost, using the effective interest rate unless the discount effect is not material, then it stated at cost. Interest expense is recognized in the consolidated statements of profit or loss and other comprehensive income. Gains or losses are recognized in the consolidated statements of profit or loss and othercomprehensive income when the financial liabilities is derecognized and through the amortization process.

Saling Hapus Instrumen Keuangan Offsetting of Financial Instruments

Aset keuangan dan liabilitas keuangan saling hapus dan nilai bersihnya dilaporkan dalam laporan posisi keuangan konsolidasian jika, dan hanya jika, saat ini memiliki hak yang berkekuatan hukum untuk melakukan saling hapus atas jumlah yang telah diakui dan terdapat maksud untuk menyelesaikan secara neto, atau untuk merealisasikan aset dan menyelesaikan liabilitas secara bersamaan.

Financial assets and financial liabilities are offset and the net amount reported in the consolidated statementsof financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

Nilai Wajar Instrumen Keuangan Fair Value of Financial Instruments

Nilai wajar instrumen keuangan yang diperdagangkan secara aktif di pasar keuangan yang terorganisasi, jika ada, ditentukan dengan mengacu pada kuotasi harga di pasar aktif pada akhir periode pelaporan.

The fair values of financial instruments that are actively traded in organized financial markets, if any, are determined by reference to quoted market bid prices at the close of business at the end of the reporting period.

Untuk instrumen keuangan yang tidak memiliki pasar aktif, nilai wajar ditentukan dengan menggunakan teknik penilaian. Teknik penilaian tersebut mencakup penggunaan transaksi-transaksi pasar yang wajar antara pihak-pihak yang mengerti dan berkeinginan; referensi atas nilai wajar terkini dari instrumen lain yang secara substansial sama; analisa arus kas yang didiskonto; atau model penilaian lain.

For financial instruments where there is no active market, fair value is determined using valuation techniques. Such techniques may include using recent arm’s length market transactions; reference to the current fair value of another instrument that is substantially the same; discounted cash flow analysis; or other valuation models.

— F-47 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

34

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

p. Aset Keuangan dan Liabilitas Keuangan (lanjutan) p. Financial Assets and Liabilities (continued)

Biaya Perolehan Diamortisasi dari Instrumen Keuangan

Amortized Cost of Financial Instruments

Biaya perolehan diamortisasi dihitung dengan menggunakan metode suku bunga efektif dikurangi dengan penyisihan atas penurunan nilai dan pembayaran pokok atau nilai yang tidak dapat ditagih. Perhitungan tersebut mempertimbangkan premium atau diskonto pada saat perolehan dan termasuk biaya transaksi dan biaya yang merupakan bagian yang tak terpisahkan dari suku bunga efektif.

Amortized cost is computed using the effective interest rate method less any allowance for impairment and principal repayment or reduction. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate.

Penurunan Nilai Aset Keuangan Impairment of Financial Assets

Setiap akhir periode pelaporan, Grup mengevaluasi apakah terdapat bukti yang obyektif bahwa aset keuangan atau kelompok aset keuangan mengalami penurunan nilai. Aset keuangan atau kelompok aset keuangan diturunkan nilainya dan kerugian penurunan nilai telah terjadi jika, dan hanya jika, terdapat bukti yang obyektif mengenai penurunan nilai tersebut sebagai akibat dari satu atau lebih peristiwa yang terjadi setelah pengakuan awal aset tersebut (peristiwa yang merugikan), dan peristiwa yang merugikan tersebut berdampak pada estimasi arus kas masa depan atas aset keuangan atau kelompok aset keuangan yang dapat diestimasi secara handal.

The Group assess at the end of each reporting period whether there is any objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired and impairment losses have occured if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated.

Penghentian pengakuan Derecognition

i. Aset Keuangan i. Financial Assets

Grup menghentikan pengakuan aset keuangan, jika dan hanya jika, hak kontraktual untuk menerima arus kas yang berasal dari aset keuangan tersebut berakhir; atau Grup mentransfer hak untuk menerima arus kas yang berasal dari aset keuangan atau menanggung liabilitas untuk membayarkan arus kas yang diterima tersebut secara penuh tanpa penundaan berarti kepada pihak ketiga pelepasan; dan (a) Grup telah mentransfer secara substansial seluruh risiko dan manfaat atas aset, atau (b) Grup tidak mentransfer maupun tidak memiliki secara substansial seluruh risiko dan manfaat atas aset, namun telah mentransfer pengendalian atas aset.

The Group derecognize a financial asset if, and only if, the contractual rights to receive cash flows from the asset have expired; or the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass through arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group have neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Ketika Grup telah mentransfer hak untuk menerima arus kas dari aset atau telah menandatangani kesepakatan pelepasan, dan secara substansial tidak mentransfer dan tidak memiliki seluruh risiko dan manfaat atas aset keuangan, maupun mentransfer pengendalian atas aset, aset tersebut diakui sejauh keterlibatan berkelanjutan Grup terhadap aset keuangan tersebut.

When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass through arrangement, and has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Group continuing involvement in the asset.

— F-48 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

35

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

p. Aset Keuangan dan Liabilitas Keuangan (lanjutan) p. Financial Assets and Liabilities (continued)

Penghentian pengakuan (lanjutan) Derecognition (continued)

i. Aset Keuangan (lanjutan) i. Financial Assets (continued)

Dalam hal ini, Grup juga mengakui liabilitas terkait. Aset yang ditransfer dan liabilitas terkait diukur dengan dasar yang mencerminkan hak dan liabilitas yang masih dimiliki Grup.

In that case, the Group also recognizes an associated liability. Transferred asset and theassociated liability are measured on a basis that reflects the rights and obligations that the Group has retained.

Keterlibatan berkelanjutan yang berbentuk pemberian jaminan atas aset yang ditransfer diukur sebesar jumlah terendah dari jumlah tercatat aset dan jumlah maksimal dari pembayaran yang diterima yang mungkin harus dibayar kembali.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.

ii. Liabilitas Keuangan ii. Financial Liabilities

Liabillitas keuangan dihentikan pengakuannya ketika liabilitas yang ditetapkan dalam kontrak dihentikan atau dibatalkan atau kadaluwarsa.

A financial liabilities is derecognized when the liabilities specified in the contract is discontinued or cancelled or expired.

Ketika liabilitas keuangan saat ini digantikan dengan yang lain dari pemberi pinjaman yang sama dengan persyaratan yang berbeda secara substansial, atau modifikasi secara substansial atas ketentuan liabilitas keuangan yang saat ini ada, maka pertukaran atau modifikasi tersebut dicatat sebagai penghapusan liabilitas keuangan awal dan pengakuan liabilitas keuangan baru, dan selisih antara nilai tercatat liabilitas keuangan tersebut diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the consolidated statements of profit or loss and other comperehensive income.

q. Pengukuran Nilai Wajar q. Fair Value Measurement

Efektif 1 Januari 2015, Grup menerapkan PSAK No. 68, “Pengukuran Nilai Wajar”, menyatakan definisi nilai wajar dan menyediakan pedoman pengukuran nilai wajar, dalam hal nilai wajar disyaratkan atau diizinkan, serta memperluas pengungkapan mengenai nilai wajar.

Effective on January 1, 2015, the Group applied PSAK No. 68 “Fair Value Measurements”, clarifies the definition of fair value and provides guidance on how to measure fair value, when fair value is required or permitted, and aims to enhance fair value disclosures.

Nilai wajar adalah harga yang akan diterima untuk menjual suatu aset atau harga yang akan dibayar untuk mengalihkan suatu liabilitas dalam transaksi teratur di antara pelaku pasar pada tanggal pengukuran. Pengukuran nilai wajar didasarkan pada asumsi bahwa transaksi untuk menjual aset atau mengalihkan liabilitas akan terjadi:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

1. di pasar utama untuk aset atau liabilitas tersebut atau;

2. jika tidak terdapat pasar utama, di pasar yang paling menguntungkan untuk aset atau liabilitas tersebut

1. in the principal market for the asset or liability or;

2. in the absence of a principal market, in the most advantageous market for the asset or liability.

— F-49 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

36

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

q. Pengukuran Nilai Wajar (lanjutan) q. Fair Value Measurement (continued)

Grup harus memiliki akses ke pasar utama atau pasar yang paling menguntungkan.

The principal or the most advantageous market must be accessible by the Group.

Nilai wajar aset atau liabilitas diukur menggunakan asumsi yang akan digunakan pelaku pasar ketika menentukan harga aset atau liabilitas tersebut, dengan asumsi bahwa pelaku pasar bertindak dalam kepentingan ekonomi terbaiknya.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participant act in their best economic interest .

Pengukuran nilai wajar aset non-keuanganmemperhitungkan kemampuan pelaku pasar untuk menghasilkan manfaat ekonomik dengan menggunakan aset dalam penggunaan tertinggi dan terbaiknya, atau dengan menjualnya kepada pelaku pasar lain yang akan menggunakan aset tersebut dalam penggunaan tertinggi dan terbaiknya.

A fair value measurement of a nonfinancial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

Grup menggunakan teknik penilaian yang sesuai dalam keadaan dan dimana data yang memadai tersedia untuk mengukur nilai wajar, memaksimalkan penggunaan input yang dapat diobservasi yang relevan dan meminimalkan penggunaan input yang tidak dapat diobservasi.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

Seluruh aset dan liabilitas, baik yang diukur pada nilai wajar, atau dimana nilai wajar aset atau liabilitas tersebut diungkapkan, dikategorikan dalam hirarki nilai wajar, berdasarkan level input terendah yang signifikan terhadap keseluruhan pengukuran, sebagai berikut

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest able input that significant to fair value measurement as a whole:

1. Level 1 - harga kuotasian (tanpa penyesuaian) di pasar aktif untuk aset atau liabilitas yang identik;

2. Level 2 - teknik penilaian dimana level input terendah yang signifikan terhadap pengukuran nilai wajar dapat diobservasi, baik secara langsung maupun tidak langsung;

3. Level 3 - teknik penilaian dimana level input terendah yang signifikan terhadap pengukuran nilai wajar tidak dapat diobservasi.

1. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

2. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable;

3. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Untuk aset dan liabilitas yang diukur pada nilai wajar secara berulang dalam laporan keuangan konsolidasian, maka Grup menentukan apakah telah terjadi transfer di antara level hirarki nilai wajar dengan cara menilai kembali pengkategorian level nilai wajar (berdasarkan level input terendah yang signifikan terhadap keseluruhan pengukuran) pada setiap akhir periode pelaporan.

For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) atthe end of each reporting period.

r. Informasi Segmen r. Segment InformationGrup menerapkan PSAK No. 5 (revisi 2009), “Segmen Operasi”.

The Group applied PSAK No. 5 (revised 2009), “Operating Segment”.

Segmen adalah bagian khusus dari Grup yang terlibat baik dalam menyediakan produk dan jasa (segmen usaha), maupun dalam menyediakan produk dalam lingkungan ekonomi tertentu (segmen geografis), yang memiliki risiko dan imbalan yang berbeda dari segmen lainnya.

A segment is a distinguishable component of the Group that is engaged either in providing certain products (business segment), or in providing certain products within a particular economic environment (geographical segment), which is subject to risk and rewards that are different from those of other segments.

— F-50 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

37

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

r. Informasi Segmen (lanjutan) r. Segment Information (continued)

Jumlah setiap unsur segmen dilaporkan merupakan ukuran yang dilaporkan kepada pengambil keputusan operasional untuk tujuan pengambilan keputusan untuk mengalokasikan sumber daya kepada segmen dan menilai kinerjanya.

The amount of each segment item reported shall be the measure reported to the chief operating decision maker for the purposes of making decisions about allocating resources to the segment and assessing its performance.

Pendapatan, beban, hasil, aset dan liabilitas segmen termasuk item-item yang dapat diatribusikan langsung kepada suatu segmen serta hal-hal yang dapat dialokasikan dengan dasar yang sesuai terhadap segmen tersebut. Segmen ditentukan sebelum saldo dan transaksi antar Grup dieliminasi sebagai bagian dari proses konsolidasi.

Segment revenue, expenses, result, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis to that segment. They are determined before intragroup balances and intragroup transactionsare eliminated in the consolidation process.

s. Peristiwa Setelah Tanggal Pelaporan s. Events After Reporting Date

Grup menerapkan PSAK No. 8 (revisi 2010), “Peristiwa Setelah Periode Pelaporan”.

The Group applied PSAK No. 8 (revised 2010), “Event After Reporting Period”.

Peristiwa setelah akhir periode yang memerlukan penyesuaian dan menyediakan informasi tambahan tentang posisi Grup pada tanggal pelaporan (adjusting event) tercermin dalam laporan keuangan konsolidasian.

Post period-end events that need adjustments and provide additional information about the Grup position at the reporting date (adjusting event) are reflected in the consolidated financial statements.

Peristiwa setelah akhir periode yang tidak memerlukan penyesuaian diungkapkan dalam laporan keuangan konsolidasian apabila material.

Any post period-end event that is not an adjusting event is disclosed in the notes to the consolidated financial statements when material.

t. Laba per Saham Dasar yang Diatribusikan Kepada Pemilik Entitas Induk

t. Basic Earnings per Share Attributable to Owners of the Parent Entity

Grup menerapkan PSAK No. 56 (revisi 2011), “Laba per Saham”.

The Group applied PSAK No. 56 (revised 2011), “Earning per Shares”.

Laba per saham dasar dihitung dengan membagi total laba periode/tahun berjalan yang dapat diatribusikan kepada pemilik Entitas Induk dengan jumlah rata-rata tertimbang saham biasa yang beredar pada periode/tahun yang bersangkutan.

Basic earnings per share amounts are computed by dividing the total income for the period/year attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the period/year.

u. Standar Akuntansi Baru u. New Accounting Standards

Standar akuntansi revisi yang berlaku efektif pada tanggal 1 Januari 2015, yang relevan dan berdampak material terhadap laporan keuangan konsolidasian Grup adalah sebagai berikut:

New accounting standards effective for the financial year January 1, 2015 which are relevant and have a material impact to the consolidated financial statements of the Group are as follows:

- PSAK No. 24 (revisi 2013) "Imbalan Kerja". - PSAK No. 24 (revised 2013), "Employees’ Benefits”.

— F-51 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

38

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)

u. Standar Akuntansi Baru (lanjutan) u. New Accounting Standards (continued)

Standar akuntansi revisi yang berlaku efektif pada tanggal 1 Januari 2015, yang relevan namun tidak berdampak material terhadap laporan keuangan konsolidasian Grup adalah sebagai berikut:

New accounting standards effective for the financial year January 1, 2015 which are relevant but do not have a material impact to the consolidated financial statements of the Group are as follows:

- PSAK No. 1 (revisi 2013), “Penyajian Laporan Keuangan”.

- PSAK No. 4 (revisi 2013), “Laporan Keuangan Tersendiri”.

- PSAK No. 15 (revisi 2013) "Investasi pada Entitas Asosiasi dan Ventura Bersama".

- PSAK No. 46 (revisi 2014) "Pajak Penghasilan".- PSAK No. 48 (revisi 2014) "Penurunan Nilai

Aset".- PSAK No. 50 (revisi 2014) "Instrumen

Keuangan: Penyajian”.- PSAK No. 55 (revisi 2014) "Instrumen

Keuangan: Pengakuan dan Pengukuran".- PSAK No. 60 (revisi 2014) "Instrumen

Keuangan: Pengungkapan".- PSAK No. 65 "Laporan Keuangan

Konsolidasian".- PSAK No. 67 "Pengungkapan Kepentingan

dalam Entitas Lain".- PSAK No. 68 "Pengukuran Nilai Wajar".- ISAK No. 15, “Batas Aset Imbalan Pasti,

Persyaratan Pendanaan Minimum dan Interaksinya”.

- PSAK No. 1 (revised 2013) "Presentation of Financial Satements".

- PSAK No. 4 (revised 2013) "Separate Financial Statements".

- PSAK No. 15 (revised 2013) 'Investment in Associates and Joint Ventures".

- PSAK No. 46 (revised 2014) "Income Taxes".- PSAK No. 48 (revised 2014) "Impairment of

Assets".- PSAK No. 50 (revised 2014) "Financial

instruments: Presentation".- PSAK No. 55 (revised 2014) "Financial

instruments: Recognition and Measurement".- PSAK No. 60 (revised 2014) "Financial

instruments: Disclosures".- PSAK No. 65 "Consolidated Financial

Statements".- PSAK No. 67 "Disclosure of Interests in Other

Entities".- PSAK No. 68 "Fair Value Measurement".- ISAK No. 15, “The Limit on a Defined Benefit

Asset, Minimum Funding Requirements and their Interaction”.

Standar akuntansi revisi yang berlaku efektif pada tanggal 1 Januari 2015, yang tidak relevan terhadap laporan keuangan konsolidasian Grup adalah sebagai berikut:

New accounting standards effective for the financial year January 1, 2015 which are irrelevant to the consolidated financial statements of the Group are as follows:

- PSAK No. 66 "Pengaturan Bersama".- ISAK No. 26 (revisi 2014) "Penilaian Kembali

Derivatif Melekat".

- PSAK No. 66 "Joint Arrangements".- ISAK No. 26 (revised 2014) "Reassessment of

embedded derivatives".

3. PENGGUNAAN PERTIMBANGAN, ESTIMASI DAN ASUMSI

3. USE OF JUDGMENTS, ESTIMATES AND ASSUMPTIONS

Penyusunan laporan keuangan konsolidasian Grup mengharuskan manajemen untuk membuat pertimbangan, estimasi dan asumsi yang mempengaruhi jumlah yang dilaporkan dari pendapatan, beban, aset dan liabilitas, dan pengungkapan atas liabilitas kontijensi, pada akhir periode pelaporan. Ketidakpastian mengenai asumsi dan estimasi tersebut dapat mengakibatkan penyesuaian material terhadap nilai tercatat aset dan liabilitas dalam tahun pelaporan berikutnya.

The preparation of the Group’s consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset and liability affected in future periods.

Pertimbangan Judgments

Dalam proses penerapan kebijakan akuntansi Grup, manajemen telah membuat keputusan berikut, yang memiliki pengaruh paling signifikan terhadap jumlah yang diakui dalam laporan keuangan konsolidasian:

In the process of applying the Group’s accounting policies, management has made the following decisions, which have the most significant effect on the amounts recognized in the consolidated financial statements:

— F-52 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

39

3. PENGGUNAAN PERTIMBANGAN, ESTIMASI DAN ASUMSI (lanjutan)

3. USE OF JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)

Pertimbangan (lanjutan) Judgments (continued)

Klasifikasi Aset dan Liabilitas Keuangan Classification of Financial Assets and Liabilities

Grup menetapkan klasifikasi atas aset dan liabilitas tertentu sebagai aset keuangan dan liabilitas keuangandengan mempertimbangkan bila definisi yang ditetapkan PSAK No. 55 (revisi 2011) dipenuhi. Dengan demikian, aset keuangan dan liabilitas keuangan diakui sesuai dengan kebijakan akuntansi Grup seperti diungkapkan pada Catatan 2p.

The Group determines the classifications of certain assets and liabilities as financial assets and financial liabilities by judging if they meet the definition set forth in PSAK No. 55 (revised 2011). Accordingly, the financial assets and financial liabilities are accounted for in accordance with the Group accounting policies disclosed in Note 2p.

Penentuan Mata Uang Fungsional Determination of Functional Currency

Mata uang fungsional Grup adalah mata uang dari lingkungan ekonomi primer tempat Grup beroperasi. Mata uang tersebut adalah mata uang yang mempengaruhi penjualan dan beban dari produk yang diberikan. Berdasarkan penilaian manajemen Grup, mata uang fungsional Grup adalah Rupiah.

The Group’s functional currency are currency from primary economic environment in which the Group operates. It is the currency that mainly influences the revenue and cost of given product. Based on the Group’s management assessment, the Group’s functional currency is Rupiah.

Penyisihan atas Kerugian Penurunan Nilai atas Piutang Usaha

Allowance for Impairment Losses of Trade Receivables

Grup mengevaluasi akun - akun tertentu jika terdapat informasi bahwa pelanggan yang bersangkutan tidak dapat memenuhi liabilitas keuangannya. Dalam hal tersebut, Grup mempertimbangkan, berdasarkan fakta dan situasi yang tersedia, termasuk namun tidak terbatas pada, jangka waktu hubungan dengan pelanggan dan status kredit dari pelanggan berdasarkan catatan kredit dari pihak ketiga dan faktor pasar yang telah diketahui, untuk mencatat penyisihan penurunan nilai yang spesifik atas jumlah piutang pelanggan guna mengurangi jumlah piutang yang diharapkan dapat diterima oleh Grup.

The Group evaluates specific accounts where it has information that certain customers are unable to meet their financial obligations. In these cases, the Group uses judgment, based on the best available facts and circumstances, including but not limited to, the length of its relationship with the customer and the customer’s current credit status based on third party credit reports and known market factors, to record specific provisions for customers against amounts due to reduce its receivable amounts that the Group expects to collect.

Penyisihan spesifik ini dievaluasi kembali dan disesuaikan jika tambahan informasi yang diterima mempengaruhi jumlah penyisihan kerugian penurunan nilai atas piutang usaha. Penjelasan lebih lanjut diungkapkan dalam Catatan 6.

These specific provisions are re-evaluated and adjusted as additional information received affects the amounts of allowance for impairment losses of trade receivables. Further details are disclosed in Note 6.

Penyisihan Penurunan Nilai dan Persediaan Usang Allowance of Impairment and obsolescence of inventories

Penyisihan penurunan nilai dan persediaan usang diestimasi berdasarkan fakta dan situasi yang tersedia, termasuk namun tidak terbatas kepada, kondisi fisik persediaan yang dimiliki, harga jual pasar, estimasi biaya penyelesaian dan estimasi biaya yang timbul untuk penjualan. Penyisihan penurunan nilai dievaluasi kembalidan disesuaikan jika terdapat tambahan informasi yang mempengaruhi jumlah yang diestimasi.

Allowance for impairment and obsolescence of inventories are estimated based on provided facts and circumstances, including but not limited to, the physical condition of inventories held, market price, estimated completion cost, and estimated costs incurred for selling of inventories. Obsolescence of inventories are re-evaluated and adjusted as additional information receive affects the estimated amounts.

Tagihan dan Keberatan atas Hasil Pemeriksaan Pajak Claims and the Result of Tax Assesments

Berdasarkan peraturan perpajakan yang berlaku saat ini, manajemen mempertimbangkan apakah jumlah tercatat dalam akun taksiran tagihan pajak dapat dipulihkan dan direstitusi oleh Kantor Pajak. Nilai tercatat tahun berjalan atas tagihan dan keberatan atas hasil pemeriksaan pajak Grup pada tanggal pelaporan diungkapkan dalam Catatan 17e.

Based on tax regulations currently enacted, the management judges if the amounts of estimated claim for tax refund account are recoverable from and refundable by the Tax Office. The carrying amount of the Group’s current claims for tax refund and tax assesments under appeal as of reporting dates are disclosed in Note 17e.

— F-53 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

40

3. PENGGUNAAN PERTIMBANGAN, ESTIMASI DAN ASUMSI (lanjutan)

3. USE OF JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)

Pertimbangan (lanjutan) Judgments (continued)

Sewa Lease

Grup mempunyai perjanjian-perjanjian sewa dimana Grup bertindak sebagai lessee untuk sewa peralatan, kendaraan dan bangunan. Grup mengevaluasi apakah terdapat risiko dan manfaat yang signifikan dari aset sewa yang dialihkan berdasarkan PSAK No. 30 “Sewa”, yang mensyaratkan Grup untuk membuat pertimbangan dengan estimasi dari pengalihan risiko dan manfaat terkait dengan kepemilikan aset.

The Group has several lease agreements where the Group acts as lessee in respect of equipments, vehicles andbuildings rental. The Group evaluates whether significant risk and rewards of ownership of the leased assets are transferred based on PSAK No. 30 “Leases”, which requires the Group make judgment and estimates of the transfer of risks and rewards related to the ownership of assets

Berdasarkan hasil penelaahan yang dilakukan Grup atas perjanjian sewa peralatan, kendaraan dan bangunan yang ada saat ini, maka sewa peralatan dan kendaraan diklasifikasikan sebagai sewa pembiayaan sedangkan sewa bangunan diklasifikasikan sebagai sewa operasi.

Based on the review performed by the Group for the current rental agreement of equipments, vehicles andbuildings, accordingly, the equipments and vehicles rental are classified as financing lease, while the buildings rental are classified as operating lease.

Estimasi dan Asumsi Estimates and Assumptions

Asumsi utama masa depan dan sumber utama estimasi ketidakpastian lain pada tanggal pelaporan yang memiliki risiko signifikan bagi penyesuaian yang material terhadap nilai tercatat aset dan liabilitas untuk periode berikutnya diungkapkan di bawah ini. Grup mendasarkan asumsi dan estimasi pada parameter yang tersedia pada saat laporan keuangan konsolidasian disusun. Asumsi dan situasi mengenai perkembangan masa depan mungkin berubah akibat perubahan pasar atau situasi di luar kendali Grup. Perubahan tersebut dicerminkan dalam asumsi terkait pada saat terjadinya.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are disclosed below. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about futuredevelopments may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

Nilai Wajar Aset Keuangan dan Liabilitas Keuangan Fair Value of Financial Assets and Liabilities

Grup mencatat aset dan liabilitas keuangan tertentu pada nilai wajar, yang mengharuskan penggunaan estimasi akuntansi. Sementara komponen signifikan atas pengukuran nilai wajar ditentukan menggunakan bukti obyektif yang dapat diverifikasi, jumlah perubahan nilai wajar dapat berbeda bila Grup menggunakan metodologi penilaian yang berbeda. Perubahan nilai wajar aset dan liabilitas keuangan tersebut dapat mempengaruhi secara langsung laba atau rugi Grup. Nilai wajar aset keuangan dan liabilitas keuangan diungkapkan pada Catatan 32.

The Group carries certain financial assets and liabilities at fair values, which requires the use of accounting estimates. While significant components of fair value measurement were determined using verifiable objective evidences, the amount of changes in fair values would differ if the Grouputilized different valuation methodology. Any changes in fair values of these financial assets and liabilities would affect directly the Group’s profit or loss. The fair value of financial assets and financial liabilities are disclosed in Note 32.

Penurunan Nilai Aset Non-keuangan Impairment of Non-financial Assets

Penelaahan atas penurunan nilai dilakukan apabila terdapat indikasi penurunan nilai aset tertentu. Penentuan nilai wajar aset membutuhkan estimasi arus kas yang diharapkan akan dihasilkan dari pemakaian berkelanjutan dan pelepasan akhir atas aset tersebut. Perubahan signifikan dalam asumsi-asumsi yang digunakan untuk menentukan nilai wajar dapat berdampak signifikan pada nilai terpulihkan dan jumlah kerugian penurunan nilai yang terjadi mungkin berdampak material pada hasil operasi Grup.

The review for impairment performed if there are indications of impairment of certain assets. Determination of fair value assets requires the estimation of cash flows expected to be generated from the continuous use and disposal of the asset. Significant changes in the assumptions used to determine fair value can have a significant impact on the recoverable amount and the amount of impairment loss occurs, that may materially affect recoverable amount the Group's results of operations.

— F-54 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

41

3. PENGGUNAAN PERTIMBANGAN, ESTIMASI, DAN ASUMSI (lanjutan)

3. USE OF JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)

Estimasi dan Asumsi (lanjutan) Estimates and Assumptions (continued)

Penurunan Nilai Aset Non-keuangan (lanjutan) Impairment of Non-financial Assets (continued)

Manajemen berkeyakinan bahwa tidak terdapat indikasi atas penurunan potensial atas nilai aset non-keuangan pada tanggal-tanggal 30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011.

Management believes that there is no event or change in circumstances that may indicate any impairment in the value of its non-financial assets as of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011.

Penyusutan Aset Tetap Depreciation of Fixed Assets

Biaya perolehan aset tetap, kecuali tanah, disusutkan dengan menggunakan metode garis lurus pada tahun 2014, dan menggunakan metode saldo menurun ganda pada tahun 2013, kecuali bangunan menggunakan metode garis lurus, berdasarkan taksiran masa manfaat ekonomisnya. Manajemen mengestimasi masa manfaat ekonomis aset tetap antara 4 sampai dengan 40 tahun. Ini adalah umur yang secara umum diharapkan dalam industri di mana Grup menjalankan bisnisnya. Perubahan tingkat pemakaian dan perkembangan teknologi dapat mempengaruhi masa manfaat ekonomis dan nilai sisa aset, dan karenanya biaya penyusutan masa depan dapat direvisi. Penjelasan lebih lanjut diungkapkan dalam Catatan 14.

The cost of fixed assets, except land, are depreciated on straight-line method in 2014, and on double-declining method in 2013, except buildings which used straight-line method, over their estimated useful lives. Management estimates the useful lives of these fixed assets to be within 4 to 40 years. These are common life expectancies applied in the industries where the Group conducts their business. Changes in the expected level of usage and technological development could impact the economic useful lives and the residual values of these assets, and therefore future depreciation charges could be revised. Further details are disclosed in Note 14.

Revaluasi Aset Tetap - Tanah Revaluation of Fixed Asset - Land

Grup melakukan revaluasi tanah pada nilai revaluasi, perubahan nilai wajar diakui dalam penghasilan komprehensif lain. Grup menggunakan penilaian dari penilai independen untuk menentukan nilai wajar tanah. Penjelasan lebih rinci diungkapkan dalam Catatan 14.

The Group revaluates its land at revaluation value, the changes of fair value are recognized in other comprehensive income. The Group uses valuation of independent appraiser to determine the fair value of land. Further details are disclosed in Note 14.

Pajak Penghasilan Income Tax

Pertimbangan signifikan dilakukan dalam menentukan penyisihan atas pajak penghasilan badan. Terdapat transaksi dan perhitungan tertentu yang penentuan pajak akhirnya adalah tidak pasti dalam kegiatan usaha normal. Grup mengakui liabilitas atas pajak penghasilan badan berdasarkan estimasi apakah akan terdapat tambahan pajak penghasilan badan.

Significant judgment is involved in determining the provision for corporate income tax. There are certain transactions and computation for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognizes liabilities for expected corporate income tax issues based on estimates of whether additional corporate income tax will be due.

Liabilitas Imbalan Kerja Karyawan Liabilities for Employees’ Benefits

Penentuan liabilitas imbalan kerja Grup tergantung pada pemilihan asumsi yang digunakan oleh aktuaris independen dalam menghitung jumlah-jumlah tersebut. Asumsi tersebut termasuk antara lain, tingkat diskonto, tingkat kenaikan gaji, tingkat pengunduran diri karyawan tahunan, tingkat mortalitas, dan usia pensiun. Hasil aktual yang berbeda dari asumsi yang ditetapkan Grup yang memiliki pengaruh terhadap liabilitas imbalan kerja pastidiakui dalam penghasilan komprehensif lain. Sementara Grup berkeyakinan bahwa asumsi tersebut adalah wajar dan sesuai, perbedaan signifikan pada hasil aktual atau perubahan signifikan dalam asumsi yang ditetapkan Grup dapat mempengaruhi secara material. Penjelasan lebih lanjut diungkapkan dalam Catatan 22.

The determination of the Group’s employees’ benefits liabilities are dependent on its selection of certain assumptions used by the independent actuaries and Group’s management in calculating such amounts. Those assumptions include, among others, discount rates, future annual salary increase rate, annual employee turn-over rate, mortality rate, and retirement age. Actual results that differ from the Group’s assumptions which affects the defined benefit obligations are recognized in other comprehensive income. While it is believed that the Group’s assumptions are reasonable and appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the amount of employees’ benefits reserve. Further details are disclosed in Note 22.

— F-55 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

42

3. PENGGUNAAN PERTIMBANGAN, ESTIMASI, DAN ASUMSI (lanjutan)

3. USE OF JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)

Estimasi dan Asumsi (lanjutan) Estimates and Assumptions (continued)

Aset dan Liabilitas Pajak Tangguhan Deferred Tax Assets and Liabilities

Aset dan liabilitas pajak tangguhan diakui atas seluruh beda temporer sepanjang besar kemungkinannya bahwa beda temporer kena pajak tersebut dapat digunakan. Estimasi signifikan oleh manajemen diharuskan dalam menentukan jumlah aset dan liabilitas pajak tangguhan yang dapat diakui, berdasarkan saat penggunaan dan tingkat penghasilan kena pajak serta strategi perencanaan pajak masa depan.

Deferred tax assets and liabilities are recognized for all taxable temporary differences to the extent that it is probable that the temporary differences can be used. Significant management estimates are required to determine the amount of deferred tax assets and liabilities that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

4. PENYAJIAN KEMBALI ATAS LAPORAN KEUANGAN KONSOLIDASIAN

4. RESTATEMENT ON THE CONSOLIDATED FINANCIAL STATEMENTS

Beberapa akun dalam laporan posisi keuangankonsolidasian pada tanggal 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011 telah disajikan kembali sehubungan dengan penerapan PSAK No. 24 (revisi 2013) yang berlaku retrospektif (Catatan 2j).

Certain accounts in the consolidated statements of financial position as of December 31, 2014, 2013, 2012and January 1, 2012/December 31, 2011 have been restated in accordance with the implementation of PSAK No. 24 (revised 2013) that is applied retrospectively (Note 2j).

31 Desember 2014/December 31, 2014

Sebelum Setelahdisajikan disajikan

kembali/ kembali/ Before restated After restated

Aset pajak tangguhan 4.051 6.395 Deferred tax assets Liabilitas imbalan kerja karyawan 15.528 39.972 Liabilities for employees’ benefits

Liabilitas pajak tanguhan 4.060 294 Deferred tax liabilities Tambahan modal disetor (62.468 ) (66.377 ) Additional paid - in capital

Penghasilan komprehensif lain 410.068 409.992 Other comprehensive income Saldo laba 213.694 199.453 Retained earnings

Kepentingan non-pengendali 1.390 1.282 Non-controlling interestLaba per saham 112 112 Earning per share

31 Desember 2013/December 31, 2013

Sebelum Setelahdisajikan disajikan

kembali/ kembali/ Before restated After restated

Aset pajak tangguhan 7.978 8.603 Deferred tax assets Liabilitas imbalan kerja karyawan 13.320 15.821 Liabilities for employees’ benefits Proforma modal yang berasal Capital proforma arising from

dari transaksi restrukturisasi restructuring transactions of entitas sepengendali (30.360 ) (31.361 ) entities under common control

Penghasilan komprehensif lain 296.311 296.310 Other comprehensive income Saldo laba 131.453 130.606 Retained earnings

Kepentingan non-pengendali 664 637 Non-controlling interestLaba per saham 78 78 Earning per share

— F-56 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

43

4. PENYAJIAN KEMBALI ATAS LAPORAN KEUANGAN KONSOLIDASIAN (lanjutan)

4. RESTATEMENT ON THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

31 Desember 2012/December 31, 2012

Sebelum Setelahdisajikan disajikan

kembali/ kembali/ Before restated After restated

Aset pajak tangguhan 6.197 8.186 Deferred tax assetsLiabilitas imbalan kerja karyawan 9.928 17.884 Liabilities for employees’ benefits

Proforma modal yang berasal Capital proforma arising dari transaksi restrukturisasi from restructuring transactions of entitas sepengendali (8.549 ) (10.720 ) entities under common control Saldo laba 86.568 82.831 Retained earnings

Kepentingan non-pengendali 978 921 Non-controlling interestLaba per saham 48 48 Earning per share

1 Januari 2012/31 Desember 2011/January 1, 2012/December 31, 2011

Sebelum Setelahdisajikan disajikan

kembali/ kembali/ Before restated After restated

Aset pajak tangguhan 3.962 5.364 Deferred tax assets Liabilitas imbalan kerja karyawan 9.618 15.245 Liabilities for employees’ benefits

Proforma modal yang berasal Capital proforma arising dari transaksi restrukturisasi from restructuring transactions of entitas sepengendali (27.506 ) (28.763 ) entities under common control

Saldo laba 61.034 58.100 Retained earningsKepentingan non-pengendali 247 214 Non-controlling interest

5. KAS DAN BANK 5. CASH AND BANKS

Kas dan bank terdiri atas: Cash and banks consist of:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Kas Cash Rupiah 5.749 4.606 2.844 1.371 1.891 Rupiah Dollar Amerika United States Dollar (USD 18.469 (USD 18,469 as tanggal 30 Juni 2015 of June 30, 2015 USD 17.538 USD 17,538 as tanggal of December 31, 31 Desember 2014, 2014, USD 13,004 USD 13.004 tanggal as of December 31 Desember 2013, 31, 2013, USD 10.686 USD 10,686 as of tanggal December 31, 31 Desember 2012 2012 and dan USD 13.028 USD 13,028 tanggal 1 Januari as of January 1, 2012/31 Desember 2012/December 2011) 246 218 158 103 118 31, 2011)

— F-57 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

44

5. KAS DAN BANK (lanjutan) 5. CASH AND BANKS (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Kas (lanjutan) Cash (continued) Peso Filipina (PHP 366.905 Philippine Peso tanggal (PHP 366,905 as 30 Juni 2015, of June 30, 2015, PHP 364.170 PHP 364,170 as tanggal of December 31, 31 Desember 2014 2014 and dan PHP 220.800 PHP 220,800 as tanggal of December 31, 31 Desember 2013) 108 101 61 - - 2013) Vietnam Dong Dong Vietnam (VND 141,251,800 (VND 141.251.800 as of tanggal June 30, 2015, 30 Juni 2015, (VND 75,260,000 VND 75.260.000 as of tanggal December 31, 31 Desember 2014 2014 and dan VND 70,972,286 VND 70.972.286 as of tanggal December 31, 31 Desember 2013) 86 44 41 - - 2013) Malaysian Ringgit Ringgit Malaysia (MYR 13,802 as of (MYR 13.802 tanggal Juni 30, 2015, 30 Juni 2015, (MYR 4,846 as of (MYR 4.846 tanggal December 31, 31 Desember 2014 2014 and dan MYR 9.369 MYR 9,369 as of tanggal December 31, 31 Desember 2013) 49 17 35 - - 2013) Jumlah kas 6.238 4.986 3.139 1.474 2.009 Total cash Bank Banks Rupiah Rupiah PT Bank Central PT Bank Central Asia Tbk 15.745 17.339 37.830 4.608 2.821 Asia Tbk PT CIMB Niaga PT Bank CIMB Niaga Syariah 6.305 2 2 221 243 Syariah PT Bank Danamon PT Bank Danamon Indonesia Tbk 3.478 225 5.415 575 - Indonesia Tbk PT Bank Internasional PT Bank International Indonesia Tbk 1.706 1.723 7.229 307 - Indonesia Tbk PT Bank Rakyat PT Bank Rakyat Indonesia Indonesia (Persero) Tbk 1.087 476 - - - (Persero) Tbk PT CIMB Niaga Tbk 866 960 235 573 346 PT CIMB Niaga Tbk PT Bank DBS PT Bank DBS Indonesia 253 625 657 95 - Indonesia PT Bank Mega Tbk 3 - - - - PT Bank Mega Tbk PT Bank Mandiri PT Bank Mandiri (Persero) Tbk 2 - - - - (Persero) Tbk PT Bank Index Selindo - - 74 358 285 PT Bank Index Selindo PT Bank Ganesha - - 11 407 351 PT Bank Ganesha PT Bank Permata Tbk - - - 323 78 PT Bank Permata Tbk Sub-jumlah 29.445 21.350 51.453 7.467 4.124 Sub-total

— F-58 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

45

5. KAS DAN BANK (lanjutan) 5. CASH AND BANKS (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Bank (lanjutan) Banks (continued)

Dollar Amerika United States Dollar PT Bank Central PT Bank Central Asia Tbk Asia Tbk (USD 331.949 (USD 331,949 tanggal as of June 30, 30 Juni 2015, 2015, USD 430.749 USD 430,749 as tanggal of December 31, 31 Desember 2014, 2014, USD 21,597 USD 21.597 tanggal as of December 31 Desember 2013, 31, 2013, USD 4.103 tanggal USD 4,103 as of 31 Desember December 31, 2012 dan 2012 and USD 57.361 tanggal USD 57,361 as of 1 Januari 2012/ January 1, 2012/ 31 Desember December 31, 2011) 4.425 5.359 263 40 520 2011) PT CIMB Niaga Tbk PT CIMB Niaga Tbk (USD 163.895 (USD 163,895 as tanggal of June 30, 30 Juni 2015, 2015, USD 505.937 USD 505,937 as tanggal of December 31, 31 Desember 2014, 2014, USD 511.035 USD 511,035 tanggal as of December 31 Desember 2013, 31, 2013, USD 45.649 USD 45,649 as of tanggal 31 Desember December 31, 2012 dan 2012 and dan USD 25.641 USD 25,641 as of tanggal 1 Januari January 1, 2012/ 2012/31 Desember December 31, 2011) 2.185 6.294 6.229 441 233 2011) ANZ Bank Ltd., Vietnam ANZ Bank Ltd., Vietnam (USD 121.870 (USD 121,870 as tanggal of June 30, 30 Juni 2015, 2015, USD 67.132 USD 67,132 as tanggal of December 31, 31 Desember 2014 2014 and dan USD 9.275 USD 9,275 tanggal as of December 31 Desember 2013) 1.625 835 113 - - 31, 2013) DBS Bank Ltd., DBS Bank Ltd., Singapura Singapore (USD 61.452 (USD 61,452 as tanggal of June 30, 30 Juni 2015 2015 and dan USD 74.635 USD 74,635 as tanggal of December 31, 31 Desember 2014) 819 928 - - - 2014) OCBC Bank Bhd., OCBC Bank Bhd., Malaysia Malaysia (USD 23.790 (USD 23,790 as of tanggal June 30, 30 Juni 2015 2015 and dan USD 5.906 USD 5,906 as of tanggal December 31, 31 Desember 2014) 317 73 - - - 2014)

— F-59 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

46

5. KAS DAN BANK (lanjutan) 5. CASH AND BANKS (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4)

Bank (lanjutan) Banks (continued) Dollar Amerika (lanjutan) United States Dollar (continued) BDO Unibank, BDO Unibank, Filipina Philippine (USD 16.549 (USD 16,549 as tanggal of June 30, 30 Juni 2015, 2015, USD 621 USD 621 as tanggal of December 31, 31 Desember 2014 2014 and dan USD 222 USD 222 tanggal as of December 31 Desember 2013) 221 8 3 - - 31, 2013) PT Bank Index Selindo PT Bank Index Selindo (USD 6.328 (USD 6,328 as tanggal of December 31, 31 Desember 2014, 2014, USD 7.830 USD 7,830 tanggal as of December 31 Desember 2013, 31, 2013, USD 4.405 USD 4,405 as of tanggal 31 Desember December 31, 2012 2012 dan USD 4.699 USD 4,699 as of tanggal 1 Januari January 1, 2012/ 2012/31 Desember December 31, 2011) - 79 95 43 43 2011) Sub-jumlah 9.592 13.576 6.703 524 796 Sub-total

Ringgit Malaysia Malaysian Ringgit The Hongkong and The Hongkong and Shanghai Banking Shanghai Banking Corporation Bhd., Corporation Bhd., (MYR 354.079 (MYR 354,079 as tanggal of June 30, 30 Juni 2015, 2015, MYR 577.025 MYR 577,025 as tanggal of December 31, 31 Desember 2014 2014 and dan MYR 13.102 MYR 13,102 tanggal as of December 31 Desember 2013) 1.249 2.055 49 - - 31, 2013) OCBC Bank Bhd., OCBC Bank Bhd., Malaysia Malaysia (MYR 715 (MYR 715 as tanggal of June 30, 30 Juni 2015, 2015, MYR 9.610 MYR 9,610 as tanggal of December 31, 31 Desember 2014 2014 and dan MYR 85.208 MYR 85,208 tanggal as of December 31 Desember 2013) 3 34 316 - - 31, 2013) Sub-jumlah 1.252 2.089 365 - - Sub-total

— F-60 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

47

5. KAS DAN BANK (lanjutan) 5. CASH AND BANKS (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Bank (lanjutan) Banks (continued) Peso Filipina Philippine Peso Bank of the Philippine Bank of the Philippine Island, Filipina Island, Philippine (PHP 5.234.744 (PHP 5,234,744 tanggal as of June 30, 30 Juni 2015, 2015, PHP 3.713.793 PHP 3,713,793 as tanggal of December 31, 31 Desember 2014 2014 and dan PHP 3.039.971 PHP 3,039,971 tanggal as of December 31 Desember 2013) 1.546 1.032 835 - - 31, 2013) BDO Unibank Inc., BDO Unibank Inc., Filipina Philippine (PHP 2.491.923 (PHP 2,491,923 tanggal as of 30 Juni 2015, June 30,2015, PHP 3.290.725 PHP 3,290,725 as tanggal of December 31, 31 Desember 2014 2014 and dan PHP 705.095 PHP 705,095 tanggal as of December 31 Desember 2013) 736 914 194 - - 31, 2013) Sub-jumlah 2.282 1.946 1.029 - - Sub-total Dong Vietnam Vietnam Dong ANZ Bank Ltd, Vietnam ANZ Bank Ltd, Vietnam (VND 212,482,431 (VND 212.482.431 as of tanggal June 30, 2015, 30 Juni 2015, VND 699,556,758 VND 699.556.758 as of tanggal December 31, 31 Desember 2014 2014 and dan VND 310,217,952 VND 310.217.952 as of tanggal December 31, 31 Desember 2013) 130 407 180 - - 2013) Jumlah bank 42.701 39.368 59.730 7.991 4.920 Total banks Jumlah 48.939 44.354 62.869 9.465 6.929 Total

Pada tanggal 30 Juni 2015, 31 Desember 2014, 2013,2012 dan 1 Januari 2012/31 Desember 2011 tidak ada kas dan bank Grup yang dibatasi penggunaannya atau ditempatkan pada pihak berelasi.

As of June 30, 2015, December 31, 2014, 2013, 2012, and January 1, 2012/December 31, 2011, there is no cash and banks owned by the Group which is restricted in useor is placed in related parties.

— F-61 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

48

6. PIUTANG USAHA 6. TRADE RECEIVABLES

Piutang usaha merupakan tagihan atas penjualan produk-produk Grup kepada pihak-pihak distributor dengan rincian sebagai berikut:

Trade receivable represent receivables related to the salesof the Group's products to distributors with details as follows :

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Pihak ketiga 761.389 454.599 310.867 249.411 212.256 Third partiesDikurangi penyisihan atas Less allowance for kerugian penurunan impairment losses of nilai piutang usaha (9.112) (8.760) (8.930) (1.294) (1.006) trade receivables Bersih 752.277 445.839 301.937 248.117 211.250 NetPihak berelasi (Catatan 7a) - - - 33.750 36.020 Related parties (Note 7a) Jumlah 752.277 445.839 301.937 281.867 247.270 Total

Rincian piutang usaha berdasarkan nama pelanggan adalah sebagai berikut:

The details of trade receivables based on customers’ name are as follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Pihak ketiga Third parties PT Sumber Alfaria PT Sumber Alfaria Trijaya Tbk 39.886 17.569 11.303 13.227 8.648 Trijaya Tbk PT Laut Timur PT Laut TImur Ardiprima 28.737 25.986 21.771 19.744 12.574 Ardiprima PT Sinar Kencana PT Sinar Kencana Multi Lestari 26.132 21.119 8.417 10.735 7.707 Multi Lestari PT Indomarco PT Indomarco Prismatama Tbk 23.975 16.782 10.082 8.547 4.665 Prismatama Tbk PT Trans Retail PT Trans Retail Indonesia 20.139 1.532 3.432 3.535 217 Indonesia PT Dutamasindo PT Dutamasindo Labora Jaya 20.135 19.885 7.175 3.178 2.851 Labora Jaya PT Liefarel PT Liefarel Multiniaga Lestari 16.850 10.669 5.262 2.387 4.208 Multiniaga Lestari UD Duta Air Mentari 13.652 9.717 1.658 - - UD Duta Air Mentari PT Cahaya Lestari PT Cahaya Lestari Teguhmakmur 13.358 9.588 3.759 4.480 1.916 Teguhmakmur PT Matahari PT Matahari Putra Prima Tbk 13.251 8.155 4.230 2.733 2.928 Putra Prima Tbk PT Mestika Sakti 11.935 8.114 9.919 7.727 8.132 PT Mestika Sakti CV Mitra Abadi 11.018 4.795 2.897 - - CV Mitra Abadi CV Sumatera 9.830 4.066 1.250 3.476 1.096 CV Sumatera CV Dimas 9.693 7.013 3.955 3.829 3.851 CV Dimas PT Cendana Perdana PT Cendana Perdana Perkasa 9.269 4.806 4.141 2.977 2.282 Perkasa PT Manna Distrindo 8.580 2.470 3.649 1.439 1.319 PT Manna Distrindo PT Adyajati Lestari 8.529 - 4.254 3.458 2.939 PT Adyajati Lestari PT Indah Permai PT Indah Permai Group 8.082 8.583 6.162 2.685 2.863 Group PT Hero PT Hero Supermarket Tbk 7.521 573 770 910 1.790 Supermarket Tbk

— F-62 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

49

6. PIUTANG USAHA (lanjutan) 6. TRADE RECEIVABLES (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Pihak ketiga (lanjutan) Third parties (continued) UD Sumber Baru 7.375 9.282 - - - UD Sumber Baru PT Bintang Baru PT Bintang Baru Terus Jaya 7.247 4.892 3.012 2.303 2.593 Terus Jaya PT Bina San Prima 7.215 5.272 3.124 1.925 2.568 PT Bina San Prima PT Anugerah PT Anugerah Perkasa Sejahtera 6.890 1.794 2.657 3.140 1.973 Perkasa Sejahtera PT Natura Mega Murni 6.763 3.141 4.180 3.598 4.686 PT Natura Mega Murni UD Yasudaco 6.723 - 2.726 - - UD Yasudaco PT Anugrah PT Anugrah Primakarsa 6.715 - - - - Primakarsa UD Jaya Makmur 6.679 1.038 862 - - UD Jaya Makmur PT Budimas Makmur PT Budimas Makmur Mulia 6.627 3.924 2.961 1.156 994 Mulia CV Ratna Pratama CV Ratna Pratama Mandiri 6.486 3.578 1.606 3.309 1.988 Mandiri UD Roda Mas 6.445 5.339 4.345 4.233 3.242 UD Roda Mas New Link Pte. Ltd., 6.445 3.968 112 - - New Link Pte. Ltd., PT Lotte Mart PT Lotte Mart Indonesia 6.320 280 868 406 12 Indonesia PT Wilrika Citra PT Wilrika Citra Mandiri 5.932 3.926 3.245 2.976 1.636 Mandiri PT Sumber Abadi PT Sumber Abadi Sentratama 5.701 6.766 4.320 2.522 1.483 Sentratama PT Distrindo 5.637 - - - - PT Distrindo UD Ajeka Aditama UD Ajeka Aditama Distribusindo 5.260 - - - - Distribusindo UD Karya Bersama 5.146 617 403 - - UD Karya Bersama PT Irama Lestari 4.181 5.283 2.683 2.759 3.759 PT Irama Lestari PT Surya Donasin 3.779 - 5.021 - - PT Surya Donasin Johan Sanusi 3.550 5.350 1.886 1.732 2.511 Johan Sanusi PT Kebayoran Pharma - 917 6.144 4.976 5.977 PT Kebayoran Pharma Lain-lain (masing-masing Others (each below di bawah Rp 5.000) 333.701 207.810 146.626 119.309 108.848 under Rp 5,000) Jumlah pihak ketiga 761.389 454.599 310.867 249.411 212.256 Total third parties

Dikurangi penyisihan Less allowance for Penurunan nilai (9.112) (8.760) (8.930) (1.294) (1.006) impairment loss Jumlah pihak ketiga - bersih 752.277 445.839 301.937 248.117 211.250 Total third parties - netPihak berelasi (Catatan 7a) - - - 33.750 36.020 Related parties (Note 7a) Jumlah Piutang Total Trade Usaha 752.277 445.839 301.937 281.867 247.270 Receivables

Rincian umur piutang usaha dihitung berdasarkan tanggal faktur adalah sebagai berikut:

The details of trade receivables based on aging of trade receivables are as follows:

— F-63 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

50

6. PIUTANG USAHA (lanjutan) 6. TRADE RECEIVABLES (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Pihak ketiga Third parties Belum jatuh tempo 607.651 376.852 127.672 163.138 160.513 Not yet due Sudah jatuh tempo : Past due : 1 - 30 hari 75.174 42.712 150.501 68.644 31.416 1 - 30 days 31 - 60 hari 45.481 10.287 15.599 7.316 8.922 31 - 60 days 61 - 90 hari 15.227 6.943 2.544 3.718 5.187 61 - 90 days Lebih dari More than 90 hari 17.856 17.805 14.551 6.595 6.218 90 days Sub-jumlah 761.389 454.599 310.867 249.411 212.256 Sub-total Dikurangi penyisihan atas Less allowance for kerugian penurunan impairment losses of nilai piutang usaha (9.112) (8.760) (8.930) (1.294) (1.006) trade receivables Bersih 752.277 445.839 301.937 248.117 211.250 Net

Pihak berelasi Related parties Belum jatuh tempo - - - 3.573 5.696 Not yet due Sudah jatuh tempo : Past due : 1 - 30 hari - - - 9.369 1.623 1 - 30 days 31 - 60 hari - - - 3.017 1.454 31 - 60 days 61 - 90 hari - - - 1.137 1.607 61 - 90 days Lebih dari More than 90 hari - - - 16.654 25.640 90 days Sub-jumlah - - - 33.750 36.020 Sub-total Jumlah 752.277 445.839 301.937 281.867 247.270 Total

Rincian piutang usaha berdasarkan mata uang adalah sebagai berikut:

The details of trade receivables based on their original currency are as follows:

1 Januari

2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Rupiah 708.022 408.218 273.137 250.601 212.274 RupiahPeso Filipina Philippine Peso (PHP 125.311.529 (PHP 125,311,529 tanggal 30 Juni 2015, as of June 30, 2015, PHP 122.607.684 PHP 122,607,684 tanggal as of December 31, 31 Desember 2014 2014 and dan PHP 87.433.417 PHP 87,433,417 tanggal as of December 31 Desember 2013) 37.011 34.068 24.003 - - 31, 2013)

— F-64 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

51

6. PIUTANG USAHA (lanjutan) 6. TRADE RECEIVABLES (continued) 1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Dolar Amerika United States Dollar (USD 657.367 (USD 657,367 as tanggal 30 Juni 2015, of June 30, 2015, USD 601.403 USD 601,403 as tanggal of December 31, 31 Desember 2014, 2014, USD 295.492 USD 295,492 tanggal as of December 31, 31 Desember 2013 2013 USD 3.367.110 tanggal USD 3,367,110 as of 31 Desember 2012 December 31, 2012 USD 3.970.173 USD 3,970,173 tanggal 1 Januari as of January 1, 2012/31 Desember 2012/December 31, 2011) 8.764 7.482 3.602 32.560 36.002 2011)Ringgit Malaysia Malaysian Ringgit (MYR 1.994.191 (MYR 1,994,191 tanggal 30 Juni 2015, as of June 30, 2015, MYR 1.356.077 MYR 1,356,077 as tanggal of December 31, 31 Desember 2014 2014 and dan MYR 2.627.119 MYR 2,627,119 tanggal as of December 31 Desember 2013) 7.034 4.830 9.740 - - 31, 2013)Dong Vietnam Vietnam Dong (VND 913.565.392 (VND 913,565,392 tanggal 30 Juni as of June 30, 2015 dan 2015 and VND 561.730.400 VND 561,730,400 as tanggal of December 31, 31 Desember 2013) 558 - 327 - - 2013)Dolar Brunei Brunei Dollar (BND 137 (BND 137 as tanggal of December 31, 31 Desember 2014 2014 and dan BND 6.080 BND 6,080 tanggal as of December 31 Desember 2013) - 1 58 - - 31, 2013) J umlah 761.389 454.599 310.867 283.161 248.276 Total

Dikurangi penyisihan atas Less allowance for kerugian penurunan impairment losses of nilai piutang usaha (9.112) (8.760) (8.930) (1.294) (1.006) trade receivables Bersih 752.277 445.839 301.937 281.867 247.270 Net

Mutasi penyisihan atas kerugian penurunan nilai atas piutang usaha adalah sebagai berikut:

Mutation of allowance for impairment losses of trade receivables are as follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Saldo awal 8.760 8.930 1.294 1.006 1.006 Beginning balance

Saldo Entitas Anak pada Balance of Subsidiaries on saat akuisisi - - 2.056 - - acquisition

— F-65 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

52

6. PIUTANG USAHA (lanjutan) 6. TRADE RECEIVABLES (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Penyisihan atas kerugian Allowance for impairment penurunan nilai piutang losses of trade usaha periode dan receivables for tahun berjalan current period and (Catatan 29) 277 897 5.939 513 - year (Note 29)Penghapusan selama Write-off during current periode/tahun berjalan (437) (1.160) (1.294) (225) - period/yearEfek bersih penyesuaian Net effect of difference selisih kurs karena in foreign currency penjabaran laporan from translation of

keuangan consolidated konsolidasian 512 93 935 - - financial statements Jumlah penyisihan atas Total allowance for kerugian penurunan impairment losses nilai piutang usaha 9.112 8.760 8.930 1.294 1.006 of trade receivables

Berdasarkan hasil penelaahan terhadap keadaan piutang masing-masing pelanggan pada akhir periode/tahun,manajemen Grup berkeyakinan bahwa penyisihan penurunan nilai cukup untuk menutup kemungkinan kerugian atas tidak tertagihnya piutang usaha di kemudian hari.

Based on the review of the status of the individual receivable at the end of each period/year, the Group’s management believes that the allowance for impairment losses is adequate to cover any possible losses on uncollectible trade receivables in the future.

Piutang usaha dihapuskan pada saat piutang usaha telah jatuh tempo lebih dari 2 tahun.

Trade receivable written-off when the receivable has been overdue for more than 2 years.

Pada tanggal 30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011, saldo piutang usaha Entitas Induk dan DLS digunakan sebagai jaminan atas fasilitas-fasilitas pinjaman bank yang diperoleh Entitas Induk dan DLS (Catatan 15 dan 19) dengan rincian sebagai berikut:

As of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011, trade receivables are pledged as collateral for bank loan facilities obtained by the Company and DLS (Notes 15 and 19) are as follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Rupiah Rupiah PT Bank DBS PT Bank DBS Indonesia 166.667 166.667 42.500 42.500 - Indonesia PT Bank CIMB PT Bank CIMB Niaga Tbk 134.510 114.750 114.750 60.750 60.750 Niaga Tbk PT Bank Central PT Bank Central Asia Tbk 30.000 30.000 30.000 - - Asia Tbk PT Bank Danamon PT Bank Danamon Indonesia Tbk 7.000 7.000 5.000 5.000 10.000 Indonesia Tbk

— F-66 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

53

7. SIFAT, SALDO DAN TRANSAKSI DENGAN PIHAK-PIHAK BERELASI

7. NATURE, BALANCES AND TRANSACTIONS WITH RELATED PARTIES

Dalam kegiatan usaha yang normal, Grup melakukan transaksi dengan pihak-pihak berelasi, berdasarkan persyaratan yang disetujui kedua belah pihak.

In the normal course of business, the Group has engaged in transactions with related parties, which are conducted based on the agreed terms and conditions.

Rincian sifat hubungan dan jenis transaksi yang signifikan dengan pihak-pihak berelasi adalah sebagai berikut:

The nature of the relationship with the related parties are as follows:

Pihak-pihak berelasi/ Sifat dan hubungan/ Jenis transaksi/ Related parties Nature and relationship Transaction type

Kinocare (M) Sdn., Bhd., Malaysia Entitas Anak/ Piutang usaha dan penjualan/ Subsidiary Trade receivables and sales

Kino Consumer Phillippines, Entitas Anak/ Piutang usaha dan penjualan/ Inc., Filipina Subsidiary Trade receivables and sales

Harry Sanusi Pemegang saham dan presiden direktur/ Jaminan dan piutang pihak berelasi/ Shareholder and president director Personal guarantee and due from related parties

PT Kinoaid Indonesia Entitas Asosiasi/ Utang pihak berelasi/ Associates Due to related parties

PT Morinaga Kino Indonesia Entitas Asosiasi/ Utang usaha dan pembelian/Associates Trade payables and purchases

PT Kino Sentra Industrindo Entitas Sepengendali/ Utang usaha dan pembelian/ Under Common Control Trade payables and purchases

Saldo dan transaksi dengan pihak berelasi adalah sebagaiberikut:

Balances and transactions with related parties are as follows:

a. Piutang usaha - pihak berelasi a. Trade receivables - related parties

Rincian piutang usaha dengan pihak-pihak berelasi adalah sebagai berikut:

Detail of trade receivables with related parties are as follows:

30 Juni/June 30, 31 Desember/December 31, 2015 %*) 2014 %*) 2013 %*) 2012 %*) 2011 %*)

Kinocare (M) Sdn., Malaysia - - - - - - 18.865 1,91 17.445 2,63

Kino Consumer Philippines Ltd., Filipina - - - - - - 14.885 1,51 18.575 2,80 Jumlah/Total - - - - - - 33.750 3,42 36.020 5,43

*) Persentase terhadap jumlah aset/Percentage to total assets.

b. Piutang pihak berelasi b. Due from related parties

Grup melakukan transaksi di luar usaha pokok dengan pihak berelasi. Saldo atas transaksi di luar usaha pokok tersebut merupakan pinjaman tanpa bunga, tanpa jaminan dan jatuh tempo pasti yang diberikan Grup kepada Harry Sanusi.

The Group entered into transactions outside the main business with related parties. The balance of the transaction outside the main business represents loan without interest, without guarantee and without certain maturity date given by the Group to Harry Sanusi.

— F-67 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

54

7. SIFAT, SALDO DAN TRANSAKSI DENGAN PIHAK-PIHAK BERELASI (lanjutan)

7. NATURE, BALANCES AND TRANSACTIONS WITH RELATED PARTIES (continued)

c. Utang usaha - pihak berelasi c. Trade payables - related parties

Rincian utang usaha kepada pihak-pihak berelasi adalah sebagai berikut:

Detail of trade payables to related parties are as follows:

30 Juni/June 30, 31 Desember/December 31, 2015 %*) 2014 %*) 2013 %*) 2012 %*) 2011 %*)

PT Morinaga Kino Indonesia 114.851 8,28 157.227 13,09 120.611 13,96 - - - - PT Kino Sentra Industrindo - - - - - - 44.987 6,48 41.732 7,35 Jumlah/Total 114.851 8,28 157.227 13,09 120.611 13,96 44.987 6,48 41.732 7,35

*) Persentase terhadap jumlah liabilitas/Percentage to total liabilities.

d. Utang pihak berelasi d. Due to related parties

Utang pihak berelasi merupakan pinjaman tanpa bunga, tanpa jaminan dan jatuh tempo yang pasti yang diterima oleh Grup dari pihak-pihak berelasi dengan rincian sebagai berikut:

Due to related parties represents loan without interest rate, collateral and certain due date that is received by the Group from its related parties, with details as follows :

30 Juni/June 30, 31 Desember/December 31, 2015 %*) 2014 %*) 2013 %*) 2012 %*) 2011 %*) PT Kinoaid Indonesia - - - - 8.069 0,93 8.088 1,17 8.088 1,42

Harry Sanusi - - - - 3.048 0,35 - - - - Jumlah/ Total - - - - 11.117 1,28 8.088 1,17 8.088 1,42 *) Persentase terhadap jumlah liabilitas/Percentage to total liabilities.

Utang pihak berelasi kepada PT Kinoaid Indonesia dan Harry Sanusi pada tanggal 31 Desember 2013 telah dilunasi masing-masing pada tanggal 29 Agustus 2014dan 25 September 2014.

Due to related parties from PT Kinoaid Indonesia and Harry Sanusi as of December 31, 2013 have been fully paid on August 29, 2014 and September 25, 2014,respectively.

e. Penjualan Bersih e. Net sales

Rincian penjualan bersih pihak-pihak berelasi adalah sebagai berikut:

Details of net sales to related parties are as follows:

30 Juni/June 30, 31 Desember/December 31, 2015 %*) 2014 %*) 2014 %*) 2013 %*) 2012 %*)

Kinocare (M) Sdn., Malaysia - - - - - - - - 6.610 0,39

Kino Consumer Philippines Ltd., Filipina - - - - - - - - 19.157 1,13 Jumlah/ Total - - - - - - - 25.767 1,52 *) Persentase terhadap jumlah penjualan/Percentage to total sales.

— F-68 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

55

7. SIFAT, SALDO DAN TRANSAKSI DENGAN PIHAK-PIHAK BERELASI (lanjutan)

7. NATURE, BALANCES AND TRANSACTIONS WITH RELATED PARTIES (continued)

f. Pembelian f. Purchases

Rincian pembelian dari pihak berelasi adalah sebagai berikut:

Details of purchases from related parties are as follows:

30 Juni/June 30, 31 Desember/December 31, 2015 %*) 2014 %*) 2014 %*) 2013 %*) 2012 %*)

PT Morinaga Kino Indonesia 216.946 21,43% 364.349 35,09% 747.175 33,95% 96.869 7,15% - - PT Kino Sentra Industrindo - - - - - - 70.501 5,20% 61.017 5,98% Jumlah/ Total 216.946 21,43% 364.349 35,09% 747.175 33,95% 167.370 12,35% 61.017 5,98% *) Persentase terhadap jumlah beban pokok penjualan/Percentage to total cost of sales.

g. Jaminan Utang Bank g. Guarantee of bank loans

Jaminan yang diberikan oleh pihak-pihak berelasi atas fasilitas-fasilitas kredit yang didapat Grup terdiri atas:

The guarantees given by related party for credit facilities obtained by the Group are as follows :

PT Bank Ganesha, PT Bank Danamon Indonesia Tbk, dan PT Bank DBS Indonesia (Catatan 15).- Jaminan personal atas nama Harry Sanusi.

PT Bank Central Asia Tbk, PT Bank CIMB Niaga Tbk, dan PT Bank CIMB Niaga Tbk Unit Usaha Syariah (Catatan 15 dan 19).- Jaminan personal dan tanah atas nama Harry

Sanusi.

PT Bank Ganesha, PT Bank Danamon Indonesia Tbk, and PT Bank DBS Indonesia (Note 15).- Personal guarantee on behalf of Harry Sanusi.

PT Bank Central Asia Tbk, PT Bank CIMB Niaga Tbk, and PT Bank CIMB Niaga Tbk Unit Usaha Syariah (Notes 15 and 19).- Personal guarantee and land on behalf of Harry

Sanusi.

h. Gaji dan tunjangan kepada Komisaris dan Direksi g. Salaries and allowance to Commissioners and Directors

Jumlah gaji dan tunjangan yang dibayarkan kepada Komisaris dan Direksi Grup untuk periode enam bulan yang berakhir pada tanggal 30 Juni 2015, dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011 masing-masing sebesar Rp 16.819, Rp 29.016, Rp 11.734, Rp 2.487 dan Rp 2.115.

Total salaries and allowance paid to the Group’s Commissioners and Directors for the six-month period ended as of June 30, 2015, and years ended December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011 amounting to Rp 16,819, Rp 29,016, Rp 11,734, Rp 2,487 and Rp 2,115.respectively.

8. PERSEDIAAN 8. INVENTORIES

Persediaan terdiri atas: Inventories consist of:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Bahan baku 140.345 139.784 107.776 115.066 96.307 Raw materialsBarang dalam proses 6.335 5.219 4.648 3.741 3.864 Work in processBarang jadi 145.749 188.334 111.819 88.407 47.203 Finished goods J umlah 292.429 333.337 224.243 207.214 147.374 Total

— F-69 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

56

8. PERSEDIAAN (lanjutan) 8. INVENTORIES (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4)

Less allowance for Dikurangi penyisihan impairment and penurunan nilai dan obsolescence of persediaan usang (2.717) (3.400) (6.550) (13.565) (5.207) inventories Bersih 289.712 329.937 217.693 193.649 142.167 Net

Mutasi penyisihan penurunan nilai dan persediaan usang adalah sebagai berikut:

Mutation of allowance for impairment and obsolescence of inventories are as follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Saldo awal 3.400 6.550 13.565 5.207 15.692 Beginning balanceSaldo Entitas Anak pada Balance of Subsidiaries on saat akuisisi - 241 - - acquisitionPenyisihan penurunan nilai Allowance for impairment dan persediaan usang and obsolescence of untuk periode dan inventories for current tahun berjalan period and years (Catatan 29) 2.093 3.084 6.266 13.565 5.207 (Note 29) Penghapusan Write-off of obsolete persediaan usang ( 2.999 ) ( 6.240 ) ( 13.565 ) ( 5.207 ) (15.692) inventories Efek bersih penyesuaian Net effect of difference selisih kurs karena in foreign currency penjabaran laporan from translation of keuangan consolidated konsolidasian 223 6 43 - - financial statements Jumlah penyisihan Total allowance for penurunan nilai impairment and dan persediaan obsolescence of usang 2.717 3.400 6.550 13.565 5.207 inventories

Berdasarkan hasil penelaahan terhadap keadaanpersediaan pada akhir periode/tahun, manajemen Grup berpendapat bahwa penyisihan penurunan nilai dan persediaan usang cukup untuk menutup kemungkinankerugian dari penurunan nilai pasar persediaan.

Based on the review of the status of inventories at the endof period/year, the Group’s management believes that allowance for impairment and obsolescence of inventories is adequate to cover any possible losses from decline in market values of inventories.

Persediaan dihapuskan jika sudah tidak dapat digunakan kembali, dikarenakan perubahan design, formula produk dan kadaluarsa.

Inventory written off if it is not reusable, due to design changes, product formula and expired products.

— F-70 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

57

8. PERSEDIAAN (lanjutan) 8. INVENTORIES (continued)

Pada tanggal 30 Juni 2015, 31 Desember 2014, 2013,2012 dan 1 Januari 2012/31 Desember 2011, saldo persediaan Entitas Induk dan DLS digunakan sebagai jaminan atas fasilitas-fasilitas pinjaman bank yang diperoleh Entitas Induk dan DLS (Catatan 15 dan 19) dengan rincian sebagai berikut:

As of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011, the balances of inventories pledged as collateral for bank loan facilities obtained by the Company and DLS (Notes 15 and 19) areas follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Rupiah Rupiah PT Bank DBS PT Bank DBS Indonesia 83.333 83.333 - - - Indonesia PT Bank Danamon PT Bank Danamon Indonesia Tbk 48.000 48.000 50.000 50.000 5.000 Indonesia Tbk PT Bank Central PT Bank Central Asia Tbk 40.000 40.000 40.000 15.130 15.130 Asia Tbk PT Bank CIMB PT Bank CIMB Niaga Tbk 38.283 38.283 38.283 92.283 92.283 Niaga Tbk PT Bank Index PT Bank Index Selindo 7.000 7.000 - - - Selindo

Persediaan diasuransikan terhadap seluruh risiko kepada PT Asuransi Eka Llyod Jaya, PT Asuransi Reliance Indonesia, dan PT Asuransi Allianz Utama Indonesia, pihak ketiga, dengan nilai pertanggungan sebesar Rp 258.902, Rp 252.952, Rp 166.050, Rp 64.150,dan Rp 29.150 masing-masing pada tanggal 30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 December 2011. Manajemen Grup berkeyakinan bahwa nilai pertanggungan tersebut adalah cukup untuk menutup kemungkinan kerugian atas aset yang dipertanggungkan.

Inventories are insured against all risks to PT Asuransi Eka Llyod Jaya, PT Asuransi Reliance Indonesia, and PT Asuransi Allianz Utama Indonesia, third parties, with total sum insured amounting to Rp 258,902, Rp 252,952, Rp 166,050, Rp 64,150 and Rp 29,150 as of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/ December 31, 2011, respectively. The Group’s management believes that the insurance coverage is adequate to cover possible losses on the insured assets.

9. UANG MUKA 9. ADVANCES

Uang muka terdiri atas: Advances consist of:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Pembelian aset tetap 9.196 18.045 27.740 9.306 13.800 Purchase of fixed assetsOperasional 6.889 12.721 8.358 10.626 4.920 Operating advancesBahan baku dan Raw and packaging

pengemas - 2.746 6.669 3.107 1.587 materialsLain-lain 22 9.031 1.544 159 703 Others Jumlah 16.107 42.543 44.311 23.198 21.010 Total

— F-71 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

58

10. BEBAN DIBAYAR DI MUKA 10. PREPAID EXPENSES

Beban dibayar di muka terdiri atas: Prepaid expenses consist of:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Sewa 13.593 10.734 7.548 3.230 1.156 RentRenovasi gedung 5.455 4.082 - - - Building renovationAsuransi 1.809 1.681 1.249 995 636 Insurance

Lainnya 8.820 8.191 1.063 - - Others Jumlah 29.677 24.688 9.860 4.225 1.792 Total

Dikurangi bagian lancar: Less current portion: Sewa 7.910 7.703 6.694 2.369 721 Rent Renovasi gedung 1.826 1.259 - - - Building renovation Asuransi 1.736 1.489 870 861 497 Insurance Lainnya 8.576 7.896 913 - - Others

Jumlah bagian lancar 20.048 18.347 8.477 3.230 1.218 Total current portion

Bagian jangka panjang - Long-term portion - setelah dikurangi net of bagian lancar current portion Sewa 5.683 3.031 854 867 435 Rent Building Renovasi gedung 3.629 2.823 - - - renovation Asuransi 73 192 378 128 139 Insurance Lainnya 244 295 151 - - Others

Jumlah bagian

jangka panjang 9.629 6.341 1.383 995 574 Total long-term portion

11. DEPOSITO YANG DIBATASI PENGGUNAANNYA 11. RESTRICTED DEPOSITS

Deposito yang dibatasi penggunaannya terdiri atas: Restricted deposits consist of:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Deposito yang Deposits used fordipergunakan sebagai collateral of

jaminan utang bank bank loans(Catatan 15) (Note 15)Rupiah Rupiah PT Bank DBS PT Bank DBS Indonesia 29.625 22.500 3.000 4.500 - Indonesia PT Bank Danamon PT Bank Danamon Indonesia Tbk 8.188 8.316 6.317 5.000 - Indonesia Tbk PT Bank Central PT Bank Central Asia Tbk 159 154 154 - - Asia Tbk PT Bank CIMB PT Bank CIMB Niaga Tbk 8 - - - - Niaga Tbk

— F-72 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

59

11. DEPOSITO YANG DIBATASI PENGGUNAANNYA (lanjutan)

11. RESTRICTED DEPOSITS (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4)

Dollar Amerika United States Dollar PT Bank CIMB PT Bank CIMB Niaga Tbk Niaga Tbk (USD 36.196 (USD 36,196 as tanggal of December 31, 31 Desember 2013, 2013, USD 226.221 USD 226,221 as tanggal December 31, 31 Desember 2012 2012 and dan USD 87.215 USD 87,215 as of tanggal January 1, 2012/ 1 Januari 2012/ December 31, 31 Desember 2011) - - 441 2.188 791 2011)

Jaminan lain - lain Other deposit (Catatan 37) 624 554 541 - - (Note 37)

Jumlah 38.604 31.524 10.453 11.688 791 Total

Deposito berjangka yang dibatasi penggunaannya dalam mata uang Dolar Amerika Serikat memperoleh bungaberkisar antara 0,25% - 0,30% per tahun masing-masing pada tanggal 30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011. Deposito berjangka yang dibatasi penggunaannya dalam mata uang Rupiah memperoleh bunga sebesar 5,50% - 7,50% per tahun pada tanggal 30 Juni 2015, 31 Desember 2014, 2013 dan 2012.

Restricted deposits denominated in United States Dollarscurrency are subject with interest rates ranging from 0.25%- 0.30% per year as of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011, respectively. The restricted deposits denominated in Rupiah currency are subject to interest rate of 5.50% -7.50% per year as of June 30, 2015, December 31, 2014, 2013 and 2012, respectively

12. INVESTASI PADA ENTITAS ASOSIASI 12. INVESTMENT IN ASSOCIATES

Rincian investasi dalam bentuk saham pada Entitas Asosiasi adalah sebagai berikut:

Details of investments in Associates are as follows:

30 Juni 2015/June 30, 2015

PT Morinaga Kino PT Kinoaid Indonesia Indonesia Jumlah/Total

Harga perolehan 42.000 - 42.000 CostDikurangi akumulasi bagian laba (rugi) Accumulated share in net earning bersih Entitas Asosiasi (losses) from Associates

Saldo awal 925 - 925 Beginning balance Bagian atas rugi bersih (5.109) - (5.109 ) Share in net losses

Saldo akhir (4.184) - (4.184) Ending balance

Nilai tercatat investasi pada Entitas Carrying value of investment Asosiasi dengan in Associates metode ekuitas 37.816 - 37.816 using equity method

— F-73 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

60

12. INVESTASI PADA ENTITAS ASOSIASI (lanjutan) 12. INVESTMENT IN ASSOCIATES (continued)

31 Desember 2014/December 31, 2014 (Disajikan kembali, Catatan 4/ As restated, Note 4)

PT Morinaga Kino PT Kinoaid Indonesia Indonesia Jumlah/Total

Harga perolehan 42.000 12.600 54.600 Cost Dikurangi akumulasi bagian laba (rugi) Accumulated share in net earnings bersih Entitas Asosiasi (losses) from Associates

Saldo awal (387) (9.663) (10.050) Beginning balance Bagian atas laba bersih 1.312 806 2.118 Share in net earnings

Saldo akhir 925 (8.857) (7.932) Ending balance

Likuidasi Entitas Asosiasi - (3.743) (3.743) Liquidation of Associates

Nilai tercatat investasi pada Entitas Carrying value of investment Asosiasi dengan in Associates metode ekuitas 42.925 - 42.925 using equity method

31 Desember 2013/December 31, 2013 (Disajikan kembali, Catatan 4/ As restated, Note 4)

PT Morinaga Kino PT Kinoaid Indonesia Indonesia Jumlah/Total

Harga perolehan 42.000 12.600 54.600 Cost Dikurangi akumulasi bagian rugi Accumulated share in net bersih Entitas Asosiasi losses from Associates Saldo awal - (9.604 ) (9.604 ) Beginning balance Bagian atas rugi bersih (387) (59 ) (446 ) Share in net losses

Saldo akhir (387) (9.663 ) (10.050 ) Ending balance

Nilai tercatat investasi pada Entitas Carrying value of investment Asosiasi dengan in Associates

metode ekuitas 41.613 2.937 44.550 using equity method

31 Desember 2012/December 31, 2012 (Disajikan kembali, Catatan 4/ As restated, Note 4)

PT Morinaga Kino PT Kinoaid Indonesia Indonesia Jumlah/Total

Harga perolehan - 12.600 12.600 Cost Dikurangi akumulasi bagian rugi Accumulated shares in net losses bersih Entitas Asosiasi from Associates Saldo awal - (9.549 ) (9.549 ) Beginning balance Bagian atas rugi bersih - (55 ) (55 ) Share in net losses

Saldo akhir - (9.604 ) (9.604 ) Ending balance

Nilai tercatat investasi pada Entitas Carrying value of investment Asosiasi dengan in Associates metode ekuitas - 2.996 2.996 using equity method

— F-74 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

61

12. INVESTASI PADA ENTITAS ASOSIASI (lanjutan) 12. INVESTMENT IN ASSOCIATES (continued)

1 Januari 2012/31 Desember 2011/ January 1, 2012/December 31, 2011

(Disajikan kembali, Catatan 4/As restated, Note 4)

PT Morinaga Kino PT Kinoaid Indonesia Indonesia Jumlah/Total

Harga perolehan - 12.600 12.600 Cost Dikurangi akumulasi bagian rugi Accumulated shares in net losses bersih Entitas Asosiasi from Associates Saldo awal - (9.496 ) (9.496 ) Beginning balance Bagian atas rugi bersih - (53 ) (53 ) Share in net losses

Saldo akhir - (9.549 ) (9.549 ) Ending balance

Nilai tercatat investasi pada Entitas Carrying value of investment Asosiasi dengan in Associates metode ekuitas - 3.051 3.051 using equity method

Bagian Entitas Induk atas hasil Entitas Asosiasi utama dan aset dan liabilitas agregat adalah sebagai berikut:

The Company’s share of the results of its principal Associates and its aggregated assets and liabilities, are as follows:

Negara Tempat Jumlah Jumlah Penghasilan Domisili/ Liabilitas/ Penjualan/ Komprehensif/ Country of Jumlah Aset/ Total Total Comprehensive % Kepemilikan/ Domicile Total Assets Liabilities Sales Income % ownership

30 Juni 2015/ June 30, 2015

PT Morinaga Kino Indonesia Indonesia 574.445 97.927 224.149 (17.381) 29,40%

31 Desember 2014/ December 31, 2014

PT Morinaga Kino Indonesia Indonesia 656.165 162.266 755.445 4.463 29,40%

31 Desember 2013/ December 31, 2013

PT Morinaga Kino Indonesia Indonesia 620.958 131.523 109.647 (1.315) 29,40%PT Kinoaid Indonesia Indonesia 12.433 47.496 - (248) 24,00%

633.391 179.019 109.647 (1.563)

31 Desember 2012/ December 31, 2012

PT Kinoaid Indonesia Indonesia 12.661 27.483 - (228) 24,00%

— F-75 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

62

12. INVESTASI PADA ENTITAS ASOSIASI (lanjutan) 12. INVESTMENT IN ASSOCIATES (continued)

Negara Tempat Jumlah Jumlah Penghasilan Domisili/ Liabilitas/ Penjualan/ Komprehensif/ Country of Jumlah Aset/ Total Total Comprehensive % Kepemilikan/ Domicile Total Assets Liabilities Sales Income % ownership

1 Januari 2012/ 31 Desember 2011/ January 1, 2012/

December 31, 2011 PT Kinoaid Indonesia Indonesia 12.889 27.483 (39.788) (219) 24,00%

PT Morinaga Kino Indonesia (MKI) PT Morinaga Kino Indonesia (MKI)

MKI didirikan berdasarkan Akta Notaris DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 40, tanggal 19 Juli 2013, dengan kepemilikan saham oleh Entitas Induk sebesar 60% atau 42.000 saham. Akta pendirian tersebut telah disahkan oleh Menteri Kehakiman Republik Indonesia melalui Surat Keputusan No. AHU-40874.AH.01.01.Tahun 2013 tanggal 26 Juli 2013. Berdasarkan Akta Notaris DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 27 tanggal 9 Oktober 2013, MKI meningkatkan modal ditempatkan dan disetor penuh sebesar Rp 72.857.000.000 yang seluruhnya diambil bagian oleh Morinaga & Co., Ltd., Jepang, sehingga kepemilikan saham MKI oleh Entitas Induk menjadi sebesar 29,4%.

MKI was established by Notarial Deed of DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 40, dated July 19, 2013. The Company's ownership in MKI represents 60% or 42,000 shares. The deed of establishment was approved by the Minister of Law and Human Rights of the Republic of Indonesia in its decision letter No. AHU-40874.AH.01.01.Tahun 2013 dated July 26, 2013. Based on Notarial Deed of DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 27, dated October 9, 2013, MKI increased its issued and fully paid capital amounting to Rp 72,857,000,000 which is entirely taken by Morinaga & Co., Ltd., Japan, hence the Company’s ownership to MKI became 29.4%.

MKI adalah Entitas Asosiasi yang bergerak dalam produksi dan penjualan produk makanan seperti karamel, permen, coklat, biskuit, chillied dessert seperti es krim, serta makanan kesehatan seperti jelly drink dan lain-lain.

MKI is an Associate that is engaged in the production and sale of food products such as caramel, candy, chocolate, biscuits, chillied dessert such as ice cream, as well as health foods such as jelly drink and others.

PT Kinoaid Indonesia (KAI) PT Kinoaid Indonesia (KAI)

Berdasarkan Berita Acara Rapat Pemegang Saham KAI pada tanggal 26 Desember 2008, yang diaktakan dengan Akta Notaris DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 5, tanggal 3 Juli 2013, kepemilikan saham oleh Entitas Induk pada KAI adalah sebesar 24% atau 12.600 saham.

Based on the Minutes of Meeting of the Shareholders of KAI on December 26, 2008, which was notarized through Notarial Deed of DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 5, dated July 3, 2013, the Company’s ownership on KAI is 24% or 12,600 shares.

KAI adalah Entitas Asosiasi yang bergerak dalam bidang industri dan perdagangan.

KAI is an Associate that is engaged in industry and commerce.

Berdasarkan Akta Notaris DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 22, tanggal 15 Juli 2014, KAI telah di likuidasi.

Based on Notarial Deed of DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 22, dated July 15, 2014, KAI has been liquidated.

Berdasarkan hasil penelaahan berkala terhadap nilai realisasi bersih dari investasi pada Entitas Asosiasi, manajemen Grup berkeyakinan bahwa tidak terdapat indikasi penurunan nilai terhadap investasi pada Entitas Asosiasi pada tanggal 30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011.

Based on the periodic review of the net realizable value of investments in Associates, the Group's management believes that there is no indication of impairment of investments in Associates as of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/ December 31, 2011.

— F-76 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

63

12. INVESTASI PADA ENTITAS ASOSIASI (lanjutan) 12. INVESTMENT IN ASSOCIATES (continued)

Sehubungan dengan investasi pada Entitas Asosiasi: In connection with the investment in Associates:

1. Tidak terdapat pengendalian signifikan terhadap Entitas Asosiasi.

2. Tidak terdapat pembatasan signifikan atas kemampuan Entitas Asosiasi untuk mentransfer dana kepada Entitas Induk.

1. There are no significant control of the Associates.

2. There are no significant restrictions on the ability of associates to transfer funds to the Company.

3. Tidak terdapat bagian atas liabilitas kontijensi asosiasi yang terjadi bersama-sama dengan investor lain.

3. There are no contingent liabilities of the Associates together with other investors.

4. Tidak terdapat liabilitas kontijensi asosiasi yang terjadi karena investor berkewajiban bersama-sama untuk semua atau sebagian liabilitas Entitas Asosiasi.

4. There are no contingent liabilities associated because investors are obliged together for all or part of the liabilities of the Associates.

13. BEBAN DITANGGUHKAN 13. DEFERRED CHARGES

Pada tanggal 30 Juni 2015 dan 31 Desember 2014, akun ini merupakan beban jasa tenaga ahli sehubungan rencana Entitas Induk untuk melakukan Penawaran Umum Perdana Saham.

As of June 30, 2015 and December 31, 2014, this accountrepresents professional fee expenses in connection with the Company’s plan to conduct Initial Public Offering.

— F-77 —

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— F-82 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

69

14. ASET TETAP (lanjutan) 14. FIXED ASSETS (continued)

Beban penyusutan untuk periode enam bulan yang berakhir pada tanggal 30 Juni 2015 dan 2014, serta tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 2012 adalah sebagai berikut:

Depreciation expenses for six-month period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012 are as follows :

31 Desember/December 31,

2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated Note 4) Beban pokok penjualan Cost of sales

(Catatan 27) 9.010 15.430 35.770 48.387 36.871 (Note 27)Beban umum dan General and administrative

administrasi (Catatan 29) 7.002 6.077 13.279 15.058 11.592 expenses (Note 29) Jumlah 16.012 21.507 49.049 63.445 48.463 Total Perhitungan penjualan aset tetap adalah sebagai berikut: The calculation of gain on sale of fixed assets are as

follows: 31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated Note 4) Harga Jual 1.887 1.774 2.963 1.260 34 Selling PriceNilai Buku (540) (591) (871) (525) (26) Book Value Laba penjualan Gain on sale of aset tetap 1.347 1.183 2.092 735 8 fixed assets

Aset tetap diasuransikan terhadap seluruh resiko kepada PT Avrist Insurance, PT Asuransi Eka Llyod Jaya, PT Asuransi Central Asia, PT Asuransi Raksa Pratikara, PT ACE Jaya Proteksi, PT Asuransi Reliance Indonesia dan PT MNC Asuransi Indonesia, pihak ketiga, dengan nilai pertanggungan sebesar Rp 392.098, Rp 390.261, Rp 202.611, Rp 193.144, dan Rp 164.656 masing-masing pada tanggal 30 Juni 2015, 31 Desember 2014, 2013,2012 dan 1 Januari 2012/31 Desember 2011. Manajemen Grup berkeyakinan bahwa nilai pertanggungan tersebut adalah cukup untuk menutup kemungkinan kerugian atas aset yang dipertanggungkan.

Fixed assets are insured against all risks to PT Avrist Insurance, PT Asuransi Eka Llyod Jaya, PT Asuransi Central Asia, PT Asuransi Raksa Pratikara, PT ACE Jaya Proteksi, PT Asuransi Reliance Indonesia and PT MNC Asuransi Indonesia, third parties, with total sum insuredamounting to Rp 392,098, Rp 390,261, Rp 202,611, Rp 193,144 and Rp164,656 as of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011, respectively. The Group’s management believes that the insurance coverage is adequate to cover possible losses on the insured assets.

Tanah pada tanggal 30 Juni 2015 dan 31 Desember 2014 dinyatakan berdasarkan nilai wajarnya masing-masing sebesar Rp 537.926 dan Rp 513.800 yang ditentukan berdasarkan laporan penilaian independen Kantor Jasa Penilai Publik Susan Widjojo & Rekan, penilai independen, yang ditandatangani oleh Susan Widjojo, sesuai laporan nya No. 466/SWR/APP-C/O/X/15 tertanggal 8 Oktober 2015 dan No. 053 dan 054/SWR/ADF/III/15 tertanggal 25 Maret 2015, masing-masing dengan menggunakan metode pendekatan data pasar.

Land as of June 30, 2015 and December 31, 2014 are recorded using fair value amounted to Rp 537,926 and Rp 513,800, respectively, determined based on independent appraisal report of Kantor Jasa Penilai Publik Susan Widjojo & Rekan, an independent appraisers, which was signed by Susan Widjojo, according to their report No. 466/SWR/APP-C/O/X/15 dated October 8, 2015 andNo. 053 and 054/SWR/ADF/III/15 dated March 25, 2015,with the valuation method used cost approach,respectively.

— F-83 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

70

14. ASET TETAP (lanjutan) 14. FIXED ASSETS (continued)

Sedangkan tanah pada tanggal 31 Desember 2013 dan 2012 dinyatakan berdasarkan nilai wajarnya masing-masing sebesar Rp 397.271 dan Rp 234.606, yang ditentukan berdasarkan laporan penilaian independen Kantor Jasa Penilai Publik Budi, Edi, Saptono & Rekan, penilai independen, yang ditandatangani oleh Jeffry l. Benyamin, ST., SE., MAPPI, sesuai laporannya No. 2014dan 2015/JIB-BEST/L-PA/VI/14 tertanggal 3 dan 7 April 2014 dan No. 2007 dan 2008/JIB-BEST/L-PA/II/13tertanggal 26 dan 27 Februari 2013, dengan menggunakan penilaian metode pendekatan data pasar.

While, land as of December 31, 2013 and 2012 are recorded based on their fair value amounted to Rp 397,271 and Rp 234,606, respectively, determined based on independent appraisal report of Kantor Jasa Penilai Publik Budi, Edi, Saptono & Rekan, independent appraisers, which was signed by Jeffry l. Benyamin, ST., SE., MAPPI,according to their report No. 2014 and 2015/JIB-BEST/L-PA/VI/14 dated 3 and 7 April 2014 and No. 2007 and2008/JIB-BEST/L-PA/II/13 dated February 26 and 27, 2013, with the valuation method used market approach, respectively.

Selisih nilai wajar tanah dengan nilai tercatat sebesar Rp 24.126 untuk periode enam bulan yang berakhir pada tanggal 30 Juni 2015 dan masing-masing sebesar Rp 111.375, Rp 156.307 dan Rp179.764 untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 2012, diakui sebagai bagian dari “Penghasilan komprehensif lain - Surplus Revaluasi Tanah” pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

The difference in fair value of land with its carrying value amounting to Rp 24,126 for the six-monthperiod ended June 30, 2015 and Rp 111,375, Rp 156,307and Rp 179,764 for the years ended December 31, 2014,2013 and 2012, respectively, is recognized as part of "Other Comprehensive Income - Surplus Revaluation of Land" in the consolidated statements of profit or loss and other comprehensive income.

Jika tanah dicatat sebesar biaya perolehan, nilai tercatat pada tanggal 30 Juni 2015, 31 Desember 2014, 2013 dan2012, masing-masing adalah sebesar Rp 66.354, Rp 66.354, Rp 61.199 dan Rp 54.842.

If the land is carried at cost, the carrying value as of June 30, 2015, December 31, 2014, 2013 and 2012 amounting to Rp 66,354, Rp 66,354, Rp 61,199 and Rp 54,842, respectively.

Perbandingan antara hasil penilaian atas aset tetap bangunan, kendaraan, dan mesin milik Entitas Induk dan DLS, Entitas Anak, berdasarkan laporan penilai independen Kantor Jasa Penilai Publik Susan Widjojo & Rekan, penilai independen, yang ditandatangani oleh Susan Widjojo, sesuai laporannya No. 466/SWR/APP-C/O/X/15 tertanggal 8 Oktober 2015 dengan nilai tercatat aset tetap terkait pada tanggal 30 Juni 2015, adalah sebagai berikut:

Comparison between the appraised value of buildings, vehicles, and machineries of the Company and DLS, Subsidiary, based on the independent appraisal report of Kantor Jasa Penilai Publik Susan Widjojo & Rekan, an independent appraisers, which was signed by Susan Widjojo, according to their report No. 466/SWR/APP-C/O/X/15 dated October 8, 2015 with the carrying value of related fixed assets as of June 30, 2015, are as follows:

Nilai Wajar/ Nilai Tercatat/ Selisih/

Fair Value Carrying Value Difference

Tanah dan bangunan 732.703 690.598 42.105 Lands and buildingsKendaraan 65.021 20.075 44.946 VehiclesMesin 319.493 176.401 143.092 Machineries

Penilaian tersebut dilakukan dengan menggunakan metode pendekatan pendapatan, pasar dan biaya.

The assessment has been conducted by using the income, market and cost approach method.

Manajemen Grup berkeyakinan bahwa tidak terdapat kejadian-kejadian atau perubahan-perubahan yang mengindentifikasikan adanya penurunan nilai aset tetap.

Group management believes that there is no events or changes that indicates impairment of fixed assets.

Pada tanggal 30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011, tanah, mesin dan kendaraan digunakan sebagai jaminan atas fasilitas-fasilitas pinjaman bank yang diperoleh Entitas Induk dan DLS (Catatan 15 dan 19) dengan rincian sebagai berikut:

As of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/ December 31, 2011, land, machineriesand vehicles were used as collateral for bank loan facilities obtained by the Company and DLS (Notes 15 and 19) with details as follows:

— F-84 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

71

14. ASET TETAP (lanjutan) 14. FIXED ASSETS (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Rupiah Rupiah PT Bank Central PT Bank Central Asia Tbk 280.438 280.438 245.888 108.510 154.420 Asia Tbk PT Bank CIMB PT Bank CIMB Niaga Tbk 193.210 172.560 172.270 154.420 94.610 Niaga Tbk PT Bank Index PT Bank Index Selindo 47.927 47.927 - 27.779 27.779 Selindo PT Bank Danamon PT Bank Danamon Indonesia Tbk 17.955 17.955 17.955 17.955 6.864 Indonesia Tbk

Aset dalam pembangunan merupakan pengembangan bangunan dan mesin pabrik. Pada tanggal 30 Juni 2015, 31 Desember 2013, 2012, dan 1 Januari 2012/31 Desember 2011, persentase penyelesaian dari mesin dalam penyelesaian milik Entitas Induk masing-masing berkisar 5%-90%, 10%-60%, 30%-90% dan 60%-70%.Sedangkan pada tanggal 30 Juni 2015, persentase penyelesaian dari bangunan dalam penyelesaian milik Entitas Induk berkisar 25%-90%.

Construction in progress represents the development of buildings and machineries. As of June 30, 2015, December31, 2013, 2012, and January 1, 2012/December 31, 2011,the Company’s machineries in progress has percentage of completion between 5%-90%, 10%-60%, 30%-90% and 60%-70%. Whereas as of June 30, 2015, the Company’s buildings in progress has percentage of completion between 25%-90%.

15. UTANG BANK JANGKA PENDEK 15. SHORT-TERM BANK LOANS

Utang bank jangka pendek terdiri atas: Short-term bank loans consist of:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Entitas Induk The Company PT Bank CIMB PT Bank CIMB Niaga Tbk Niaga Tbk Fasilitas Kredit Overdraft Credit Rekening Koran 6.768 1.731 - - 3.466 Facility Fasilitas Kredit Revolving Loan I Revolving Loan I 177.000 177.000 177.000 24.000 24.000 Credit Facility Fasilitas Kredit Revolving Loan II Revolving Loan II - - - 35.000 35.000 Credit Facility Fasilitas Kredit Special Transaction Transaksi Khusus III - - - 24.000 24.000 Credit Facility III PT Bank Central PT Bank Central Asia Tbk Asia Tbk Fasilitas Kredit Time Revolving Loan Time Revolving Loan 65.225 94.725 46.800 33.100 21.000 Credit Facility Fasilitas Kredit Overdraft Credit Rekening Koran 42.408 14.345 6.401 21.830 15.500 Facility PT Bank Index Selindo PT Bank Index Selindo Fasilitas Kredit Overdraft Credit Rekening Koran 7.142 14.745 - - - Facility Fasilitas Kredit Trust Receipt Trust Receipt - - - 3.758 8.134 Credit Facility

— F-85 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

72

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) PT Bank Ganesha PT Bank Ganesha Fasilitas Kredit Revolving Loan I Revolving Loan I - - - 25.000 25.000 Credit Facility Fasilitas Kredit Revolving Loan II Revolving Loan II - - - 17.500 17.500 Credit FacilityEntitas Anak - PT Dutalestari Subsidiary - PT Dutalestari Sentratama Sentratama PT Bank Danamon PT Bank Danamon Indonesia Tbk Indonesia Tbk Fasilitas Open Open Account Account Financing 81.000 79.500 25.000 25.000 - Financing Facility Fasilitas Kredit Overdraft Credit Rekening Koran 14.662 14.458 - 3.787 4.014 Facility Fasilitas Kredit Berjangka - - - 10.500 10.500 Term Loan Facility PT Bank DBS PT Bank DBS Indonesia Indonesia Fasilitas Account Payable Account Payable Financing 192.000 150.000 10.000 30.000 - Financing Facility Jumlah 586.205 546.504 265.201 253.475 188.114 Total

Entitas Induk The Company

PT Bank CIMB Niaga Tbk (CIMB) PT Bank CIMB Niaga Tbk (CIMB)

Fasilitas-fasilitas kredit yang diperoleh Entitas Induk dari CIMB terdiri atas:

Credit facilities obtained by the Company from CIMB are as follows:

a. Fasilitas kredit Revolving Loan I (RL I), diperoleh pada tanggal 27 Mei 2004, berdasarkan Surat Perjanjian Kredit No. 165/CBG/JKT/2004, dengan batas maksimum pinjaman sebesar Rp 29.000. Fasilitas Kredit RL I digunakan sebagai modal kerja untuk pembelian bahan baku. Berdasarkan Perubahan Perjanjian Kredit No. 240/AMD/CB/JKT/2010 tanggal 7 Mei 2010, fasilitas ini dipecah menjadi Fasilitas Kredit Tetap sebesar Rp 24.000 dan Fasilitas Kredit Rekening Koran (RK) sebesar Rp 5.000.

a. Revolving Loan I Credit Facility (RL I) was obtained on May 27, 2004, based on Credit Agreement No. 165/CBG/JKT/2004, with maximum credit limit amounting to Rp 29,000. RL I credit facility was used as working capital to buy raw material. Based on Credit Agreement Amendment No. 240/AMD/CB/ JKT/2010 dated May 7, 2010, this credit facility has been divided into Fixed Credit Facility amounting to Rp 24,000 and Overdraft Credit Facility amounting to Rp 5,000.

Perjanjian pinjaman telah berubah beberapa kali. Padatanggal 15 Mei 2013, berdasarkan Surat Pernyataan Kembali dan Perubahan ke 13 Perjanjian Kredit No. 165/CBG/JKT/2004, Fasilitas Kredit Revolving Loan II dan Fasilitas Kredit Transaksi Khusus III, masing-masing sebesar Rp 35.000 dan Rp 24.000, dialokasikan ke dalam Fasilitas Kredit RL I.Amandemen ini juga meningkatkan batas maksimum pinjaman RL I sebesar Rp 52.000 yang digunakan untuk melunasi Fasilitas Kredit Revolving Loan dari PT Bank Ganesha, sehingga Fasilitas Kredit RL I menjadi sebesar Rp 135.000.

The loan Agreement has been amended several times.On May 15, 2013, based on 13th Restatement and Amendment Letter to the Credit Agreement No. 165/CBG/JKT/2004, Revolving Loan Credit Facility II and Special Transaction Credit Facility III, amounting to Rp 35,000 and Rp 24,000, respectively, are allocated to the credit facility RL I. This Amendment also increased the maximum credit RL I amounting to Rp 52,000, that is used to repay Revolving Loan credit facility from PT Bank Ganesha, hence the amount of the credit facility RL I become Rp 135,000.

— F-86 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

73

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank CIMB Niaga Tbk (CIMB) (lanjutan) PT Bank CIMB Niaga Tbk (CIMB) (continued)

Pada tanggal 27 Agustus 2013, berdasarkan Surat Pernyataan Kembali dan Perubahan ke 14 Perjanjian Kredit No. 165/CBG/JKT/2004, Entitas Induk memperoleh tambahan batas maksimum Fasilitas Kredit RL 1 sebesar Rp 42.000 yang digunakan untuk tambahan modal kerja, sehingga batas maksimum Fasilitas Kredit RL I menjadi sebesar Rp 177.000. Pinjaman ini dikenai bunga berkisar 11,50%, 11,50% -12,00%, 9,50% - 11,50%, 10,00% - 10,25% dan 10,25% - 11,00% per tahun masing-masing pada tahun 2015, 2014, 2013, 2012 dan 2011. Perjanjian fasilitas kredit ini telah mengalami beberapa kali perubahan, terakhir berdasarkan Surat Perpanjangan Fasilitas Pinjaman No. 207/SX/CBG II/VII/2015 tanggal 22 Juli 2015 sehubungan dengan perpanjangan masa fasilitas pinjaman yang akan berakhir pada tanggal 22 Mei 2016 (Catatan 38).

On August 27, 2013, based on 14th Restatement and Amendment Letter to the Credit Agreement No. 165/CBG/JKT/2004, the Company obtained additional maximum credit limit for Credit Facility RL 1amounting to Rp 42,000, which is used for additional working capital, hence the maximum limit of the loan RL I become Rp 177,000. This facility bears annual interest rate ranging 11.50%, 11.50% - 12%, 9.50% -11.50%, 10.00% - 10.25% and 10.25% - 11.00% in 2015, 2014, 2013, 2012 and 2011, respectively. This credit facility has been amended several times, most recently by Extension Letter of Loan Facility No. 207/SX/CBG II/VII/2015 dated July 22, 2015 in connection with extension of term loan facilities that will expire on May 22, 2016 (Note 38).

b. Fasilitas Kredit Rekening Koran (RK), diperoleh pada tanggal 7 Mei 2010, berdasarkan Perubahan Perjanjian Kredit No. 240/AMD/CB/JKT/2010, dengan batas maksimum pinjaman sebesar Rp 5.000. Pinjaman RK dikenai bunga berkisar 12,00%, 11,00% -13,00%, 11,00% - 13,00%, 10,25% - 11,00% dan 10,25% - 11,00% per tahun masing-masing pada2015, 2014, 2013, 2012 dan 2011 dan digunakan untuk modal kerja operasional. Berdasarkan Surat Perpanjangan Fasilitas Pinjaman No. 207/SX/CBG II/VII/2015 tanggal 22 Juli 2015, Entitas Induk memperoleh tambahan batas maksimum Fasilitas Kredit RK sebesar Rp 5.000 sehingga batas maksimum Fasilitas Kredit RK menjadi sebesar Rp 10.000. Jangka waktu fasilitas pinjaman ini akan berakhir pada tanggal 22 Mei 2016 (Catatan 38).

b. Overdraft Credit Facility (RK) was obtained on May 7, 2010, based on changes in Credit Agreement No. 240/AMD/CB/JKT/2010, with maximum credit limit amounting to Rp 5,000. This facility bears annual interest rate ranging 12.00%, 11.00% - 13.00%, 11.00% - 13.00%, 10.25% - 11.00% and 10.25% -11.00%, in 2015, 2014, 2013, 2012 and 2011,respectively, and is used as operational working capital. Based on Extension Letter of Loan Facility No. 207/SX/CBG II/VII/2015 dated July 22, 2015, the Company obtained additional maximum credit limit for Credit Facility RK amounting to Rp 5,000, hence the maximum limit of the loan RK become Rp 10,000. The loan facility will expire on May 22, 2016 (Note 38).

c. Fasilitas Kredit Revolving Loan II (RL II), diperoleh pada tanggal 27 Juli 2011, berdasarkan Surat Perjanjian Kredit No. 201/CB/JKT/2011, dengan batas maksimum pinjaman sebesar Rp 35.000. Pinjaman ini dikenai bunga berkisar 10,00% - 10,25% per tahun pada tahun 2012 dan digunakan sebagai modal kerja untuk pembelian bahan baku. Perjanjian fasilitas kredit ini telah mengalami beberapa kali perubahan, terakhir berdasarkan surat No. 339/AMD/CB/JKT/2012 tanggal 15 Agustus 2012 sehubungan dengan perpanjangan masa fasilitas pinjaman yang berakhir pada tanggal 22 Mei 2013.

c. Revolving Loan II Credit Facility (RL II), was obtained on July 27, 2011, based on its Credit Agreement No. 201/CB/JKT/2011, with maximum credit limit amounting to Rp 35,000. This facility bears annual interest rate ranging from 10.00% - 10.25% in 2012 and was used as working capital to buy raw materials.This credit facility has been amended several times, most recently by letter No. 339/AMD/CB/JKT/2012 dated August 15, 2012 in connection with extension of term loan facilities that expired on May 22, 2013.

Berdasarkan Surat Pernyataan Kembali dan Perubahan ke 13 perjanjian kredit No. 165/CBG/JKT/JKT/2004, tanggal 15 Mei 2013, RL II telah dialokasikan seluruhnya menjadi bagian dari fasilitas pinjaman RL I.

Based on 13th Restatement and Amendment Letter to the Credit Agreement No. 165/CBG/JKT/JKT/2004, dated May 15, 2013, RL II has been allocated entirely to RL I Credit Facility.

— F-87 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

74

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank CIMB Niaga Tbk (CIMB) (lanjutan) PT Bank CIMB Niaga Tbk (CIMB) (continued)

d. Fasilitas Letter of Credit (LC), diperoleh pada tanggal 7 Mei 2010, berdasarkan Surat Perjanjian Kredit No. 240/AMD/CB/JKT/2010 dengan batas maksimum pinjaman sebesar USD 1.500.000. Fasilitas kredit ini dikenai bunga sebesar Usance Payable At Sight(UPAS) rate + 2% per tahun dan digunakan untuk pembelian impor bahan pengemas kaleng. Perjanjian kredit ini telah mengalami beberapa kali perubahan, berdasarkan surat No. 341/AMD/CB/JKT/2011 tanggal 27 Juli 2011, menambah batas maksimum pinjaman sebesar USD 3.000.000 menjadi sebesar USD 4.500.000 kemudian, berdasarkan Surat Pernyataan Kembali dan Perubahan ke 15 Fasilitas Kredit No.165/CBG/ JKT/2004, tanggal 27 Agustus 2014, Entitas Induk memperoleh Fasilitas Bank Garansi dengan batas maksimum pinjaman yang dapat dipertukarkan dengan fasilitas LC, dan terakhir berdasarkan Surat Perpanjangan Fasilitas Pinjaman No. 207/SX/CBG II/VII/2015 tanggal 22 Juli 2015sehubungan dengan perpanjangan masa fasilitas pinjaman yang akan berakhir pada tanggal 22 Mei 2016 (Catatan 38). Pada tanggal 30 Juni 2015, tidak terdapat saldo terutang atas fasilitas kredit ini.

d. Letter of Credit Facility (LC), was obtained on May 7, 2010, based on its Credit Agreement No. 240/AMD/CB/JKT/2010 with maximum credit limit amounting to USD 1,500,000. This facility bears annual interest rate of Usance Payable At Sight (UPAS) rate + 2% and is used to purchase canned packaging materials. This agreement has been amended several times, most recently by letter No. 341/AMD/CB/JKT/2011 dated July 27, 2011, which increased the maximum borrowing limit of USD 3,000,000 to USD 4,500,000, then based on 15th

restatement and amendment to the Credit Agreement letter No. 165/CBG/JKT/ 2004, dated August 27, 2014, the Company obtained Bank Guarantee Facility with maximum credit limit that can be changed with LC facility, and last based on Extension Letter of Loan Facility No. 207/SX/CBG II/VII/2015 dated July 22,2015 in connection with extension of term loan facilities that will expire on May 22, 2016 (Note 38). As of June 30, 2015, there is no outstanding balance for this credit facility.

Fasilitas utang bank jangka pendek dan utang bank jangka panjang (Catatan 19) dari CIMB dijamin secara gabungan :

Short-term bank loans and long-term bank loans (Note 19) obtained from CIMB, are jointly secured by :

a. Tanah seluas 123 m2 dan bangunan sesuai dengan SHGB No. 2636/Sunter Jaya, atas nama Entitas Induk, tanggal 12 Maret 2007 yang terletak di Kompleks Royal Sunter Blok C-25, Kelurahan Sunter Jaya, Kecamatan Tanjung Priok, Kotamadya Jakarta Utara, Propinsi DKI Jakarta (Catatan 14).

a. Land with total area of 123 sqm and building in accordance with Land of Right of Ownership No. 2636/Sunter Jaya, owned by the Company, dated March 12, 2007, located at complex Royal Sunter Blok C-25, Sunter Jaya village, Tanjung Priok district, North Jakarta, DKI Jakarta Province (Note 14).

b. Tanah seluas 59.584 m2 dan bangunan sesuai denganSHGB No. 11/12/14/18/19/Sukatani dan 172/Nambo Udik, atas nama Entitas Induk, yang terletak di Kawasan Industri Pancatama VII, Desa Sukatani, Kecamatan Cikande, Kabupaten Serang, Propinsi Banten (Catatan 14).

b. Land with total area of 59,584 sqm and building in accordance with Land of Right of Ownership No. 11/12/14/18/19/Sukatani and 172/Nambo Udik,owned by the Company, located at Kawasan Industri Pancatama VII, Sukatani village, Cikande district, Serang, Banten Province (Note 14).

c. Tanah seluas 6.490 m2 dan bangunan sesuai dengan SHGB No.4736, 4737, 4738, 4739, 4740, 4742, 4743, 4744 Sepanjang Jaya, atas nama Entitas Induk, yang terletak di Jalan Siliwangi No. 59, Kelurahan Sepanjang Jaya, Kecamatan Rawa Lumbu, Kota Bekasi, Propinsi Jawa Barat (Catatan 14).

d. Tanah seluas 24.000 m2 dan bangunan sesuai dengan SHGB No. 00010/Pakkato, atas nama Entitas Induk, yang terletak di Desa Pakkato, Kabupaten Gowa, Sulawesi Selatan (Catatan 14).

c. Land with total area of 6,490 sqm and building in accordance with Land of Right of Ownership No. 4736, 4737, 4738, 4739, 4740, 4742, 4743, 4744 Sepanjang Jaya, owned by the Company, located at Jl. Siliwangi No. 59, Sepanjang Jaya village, Rawa Lumbu district, Bekasi, West Java (Note 14).

d. Land with total area of 24,000 sqm and building in accordance with Land of Right of Ownership No. 00010/Pakkato, owned by the Company, located at Pakkato village, Gowa, South Sulawesi (Note 14).

— F-88 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

75

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank CIMB Niaga Tbk (CIMB) (lanjutan) PT Bank CIMB Niaga Tbk (CIMB) (continued)

e. Tanah seluas 4.691 m2 dan bangunan sesuai SHGB No. 5020, 5021, 5022, 5023, 5024, 5026/Sukamaju, Depok, atas nama Entitas Induk, yang terletak di Jl. Raya Jakarta Bogor KM 36 No.12, Kampung Sidamukti, Kecamatan Cilodong, Depok, Propinsi Jawa Barat (Catatan 14).

f. Tanah seluas 43.343 m2 sesuai dengan SHGB No. 27/Sukatani dan 61/Leuwi Limus, atas nama Entitas Induk, yang terletak di daerah Industri Pancatama, Kecamatan Cikande, Kabupaten Serang, Propinsi Banten (Catatan 14).

g. Akta jaminan fidusia No. 15 dengan objek jaminan berupa mesin-mesin milik Entitas Induk (Catatan 14).

h. Akta jaminan fidusia No. 32 dengan objek jaminan berupa mesin, peralatan dan inventaris milik Entitas Induk (Catatan 14).

i. Akta jaminan fidusia No. 24 dan 25 dengan objek jaminan piutang milik Entitas Induk (Catatan 6).

e. Land with total area of 4,691 sqm and building in accordance with Land of Right of Ownership No. 5020, 5021, 5022, 5023, 5024, 5026/Sukamaju, Depok, owned by the Company, located at Jl.Raya Jakarta Bogor KM 36, No.12, Sidamukti village, Cilodong district, Depok, West Java province (Note 14).

f. Land with total area of 43,343 sqm and building in accordance with Land of Right of Ownership No. 27/Sukatani and 61/Leuwi Limus, owned by theCompany, located at Pancatama Industry area, Cikande district, Serang, Banten province (Note 14).

g. Fiduciary deed No. 15 on the Company’s machineries(Note 14).

h. Fiduciary deed No. 32 on the Company’s machineries,tools and office equipments (Note 14).

i. Fiduciary deed No. 24 and 25 on the Company’s trade receivables (Note 6).

j. Akta jaminan fidusia No. 35 dengan objek jaminan berupa bahan baku milik Entitas Induk (Catatan 8).

k. Akta jaminan fidusia No. 33 dengan objek jaminan berupa mesin dan peralatan milik Entitas Induk (Catatan 14).

l. Akta jaminan fidusia No. 34 dengan objek jaminan berupa mesin, peralatan dan inventaris milik Entitas Induk (Catatan 14).

m. Akta jaminan fidusia No. 23 dengan objek jaminan berupa mesin milik Entitas Induk (Catatan 14).

n. Hak atas tagihan-tagihan dan piutang.o. Jaminan personal atas nama Harry Sanusi, pemegang

saham dan presiden direktur (Catatan 7g).p. Jaminan tunai sebesar 10% dari nilai LC dan/atau BG.

j. Fiduciary deed No. 35 on the Company’s raw materials(Note 8).

k. Fiduciary deed No. 33 on the Company’s machineries and tools (Note 14).

l. Fiduciary deed No. 34 on the Company’s machineries,tools and office equipments (Note 14).

m. Fiduciary deed No. 23 on the Company’s machineries(Note 14).

n. Right to bills and trade receivables.o. Personal guarantee by Harry Sanusi, shareholder and

president director (Note 7g).p. Cash deposit amounted to 10% from LC and/or BG.

Selama utang Entitas Induk terhadap CIMB belum dilunasi, tanpa persetujuan tertulis dari CIMB, Entitas Induk dilarang melakukan aktivitas antara lain sebagai berikut:

For the period the Company remains indebted to CIMB, without the prior written consent from CIMB, the Company is prohibited from conducting the following activities:

a. Menjual atau dengan cara lain mengalihkan hak atau menyewakan/menyerahkan pemakaian seluruh atau sebagian kekayaan/aset Entitas Induk, baik barang-barang bergerak maupun tidak bergerak milik Entitas Induk, kecuali dalam rangka menjalankan usaha Entitas Induk sehari-hari.

a. Sell or otherwise transfer the right or lease/give the whole part of the wealth/assets of the Company, whether the goods movable or immovable property ofthe Company, except to run the Company’s daily business.

b. Menjamin/mengagunkan dengan cara bagaimanapun kekayaan Entitas Induk kepada orang/pihak lain, kecuali menjaminkan/mengagunkan kekayaan kepada CIMB sebagaimana termasuk dalam perjanjian-perjanjian jaminan.

b. Guarantee/collateralize assets of the Company in any way to the person/parties, except for guarantee/pledge wealth to CIMB as included in the guarantee agreements.

— F-89 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

76

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank CIMB Niaga Tbk (CIMB) (lanjutan) PT Bank CIMB Niaga Tbk (CIMB) (continued)

c. Mengadakan perjanjian yang dapat menimbulkan kewajiban Entitas Induk untuk membayar kepada pihakketiga, kecuali dalam rangka menjalankan usaha Entitas Induk sehari-hari.

c. Enter into an agreement which could rise the Company’s obligations to pay to third parties, except to run the daily operations of the Company .

d. Menjamin langsung atau tidak langsung pihak ketiga lainnya, kecuali melakukan endorsemen atau surat-surat yang dapat diperdagangkan untuk keperluan pembayaran atau penagihan transaksi-transaksi lain yang lazim dilakukan dalam menjalankan usaha.

d. Directly or indirectly guarantee any other third parties, except doing endorsement or letters that can be traded for purposes of payment or other billing transactions that commonly done in running the business.

e. Memberikan pinjaman kepada atau menerima pinjaman dari pihak lain kecuali dalam rangka menjalankan usaha Entitas Induk sehari-hari.

f. Mengadakan perubahan dari sifat dan kegiatan usaha Entitas Induk seperti yang sedang dijalankan saat ini.

g. Mengubah susunan pengurus, susunan pemegang saham dan nilai saham Entitas Induk.

h. Mengumumkan dan membagikan dividen saham Entitas Induk (Catatan 38).

i. Melakukan merger atau akuisisi.j. Membayar atau membayar kembali tagihan atau

piutang berupa apapun juga yang sekarang dan/atau dikemudian hari akan diberikan oleh pemegang saham Entitas Induk baik berupa jumlah pokok, bunga dan sejumlah uang lain yang wajib dibayar.

k. Mengajukan moratorium, penundaan pembayaran utang dan lain-lain.

l. Mengubah anggaran dasar Entitas Induk.

e. Give loans or receive loans from other parties except torun daily business of the Company.

f. Change the nature and activities of the Company as currently running at this time.

g. Change the composition of the board, shareholders and the value of the Company’s share.

h. Announce and distribute share dividend of theCompany (Note 38).

i. Conduct merger or acquisition.j. Pay or pay back bills or receivables in any form which

will be provided now/in the future by the Company’s shareholders in the form of the amount of principal, interest and other amounts required to be paid.

k. Ask for moratorium, delayed payments and other debts.

I. Change the Company’s Articles of Association.

Berdasarkan Surat Permohonan Pengesampingan No.004/CF-BT/BCIMB/062015, tanggal 17 Juni 2015, Entitas Induk memperoleh persetujuan dari CIMB untuk permohonan pengesampingan atas beberapa larangan atau pembatasan dalam Perjanjian Kredit terutama sehubungan dengan rencana Entitas Induk untuk mengubah anggaran dasar, susunan pengurus, susunan pemegang saham dan nilai saham Entitas Induk. (Catatan 38).

Based on the Application for Waiver Letter No.004/CF-BT/BCIMB/062015, dated June 17, 2015, the Company obtained approval from CIMB to get waiver for some covenants in the Credit Agreements especially in connection with the Company’s plan to change its composition of the board, shareholders, the value of the Company’s share, and articles of incorporation (Note 38).

Berdasarkan Keputusan Sirkuler para Pemegang Saham Sebagai tanggal 29 Juni 2015, para pemegang saham Entitas Induk menyetujui pembentukan cadangan umum sebesar Rp 24.000 dari saldo laba Entitas Induk.

Based on Circular Decision of Shareholders on June 29, 2015, the Company’s Shareholders approved appropriation of general reserve amounting to Rp 24,000 from the Company’s retained earnings.

Berdasarkan surat No. 105/RR/CBGII/V/2014 tertanggal 8 Mei 2014, CIMB telah menyetujui pembagian dividen kas atas laba Entitas Induk dengan batas maksimum pembagian dividen Rp 40.000 (Catatan 24).

Based on the letter No. 105/RR/CBGII/V/2014 dated May 8, 2014, CIMB has approved to distribute cash dividend on the Company's income with the maximum limit of dividend distribution Rp 40,000 (Note 24).

Berdasarkan surat No. 9A/DP/CBGII/I/2014 tertanggal 16 Januari 2014, CIMB telah menyetujui pembagian dividen kas atas laba Entitas Induk tahun 2013 (Catatan 24).

Based on the letter No. 9A/DP/CBGII/I/2014 dated January 16, 2014, CIMB has approved to distribute cash dividend on the Company's income in 2013 (Note 24).

Berdasarkan surat No. 002A/DP/CBGII/I/2013 tertanggal 7 Januari 2013, CIMB telah menyetujui pembagian dividen kas atas laba Entitas Induk tahun 2012 (Catatan 24).

Based on the letter No. 002A/DP/CBGII/I/2013 dated January 7, 2013, CIMB has approved to distribute cash dividend on the Company's income in 2012 (Note 24).

— F-90 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

77

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank CIMB Niaga Tbk (CIMB) (lanjutan) PT Bank CIMB Niaga Tbk (CIMB) (continued)

Selama jangka waktu pinjaman, Entitas Induk harus menjaga dan mempertahankan rasio keuangan sebagai berikut:

During the term of the loan, the Company must keep and maintain the following financial ratios:

a. Rasio lancar minimum 1:1;b. Debt to equity ratio maksimum 2,5:1; c. Nilai piutang usaha dan persediaan minimum sebesar

100% dari jumlah pinjaman modal kerja bank ditambah dengan utang usaha;

a. Minimum current ratio of 1:1;b. Maximum debt to equity ratio of 2.5:1; c. Minimum value of trade receivables and inventories of

100% of total working capital loans and trade payables;

d. Debt service coverage ratio minimum 1,5:1; e. Utang bank terhadap EBITDA maksimum 3:1.

d. Minimum debt service coverage ratio of 1.5:1;e. Maximum bank loans to EBITDA ratio of 3:1.

Pada tanggal 30 Juni 2015, Grup mempunyai rasio lancar sebesar 0,88, interest bearing debt to equity ratio sebesar 0,53, nilai piutang usaha dan persediaan terhadap jumlahpinjaman modal kerja bank ditambah dengan utang usaha sebesar 104%, debt service coverage ratio sebesar 2,99dan utang bank to EBITDA sebesar 2,03.

As June 30, 2015, the Group has current ratio of 0.88,interest bearing debt to equity ratio of 0.53, the value of trade receivables and inventories to total working capital loans and trade payables amounting to 104%, and debt service coverage ratio of 2.99, bank loans to EBITDA amounting to 2.03.

Entitas Induk telah memperoleh waiver dari CIMB atas rasio keuangan yang tidak dapat dipenuhi pada tahun 2015 (Catatan 38).

The Company has obtained waiver from CIMB due to some breached financial ratio covenant in 2015 (Note 38).

Beban bunga dari utang bank jangka pendek dari CIMB untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 2012, disajikan sebagai “Beban Bunga” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian (Catatan 30).

Interest expenses of short-term bank loans from CIMB for the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012are presented as “Interest Expenses” in the consolidated statements of profit or loss and other comprehensive income (Note 30).

PT Bank Central Asia Tbk (BCA) PT Bank Central Asia Tbk (BCA)

Berdasarkan Perjanjian Kredit No. 70 tanggal 22 Mei 2002 yang diaktakan oleh Fulgensius Jimmy H.L.T., S.H., M.H.,M.M., Entitas Induk memperoleh beberapa fasilitas kredit dari BCA. Perjanjian ini telah mengalami beberapa kali perubahan, terakhir dengan Perubahan Perjanjian Kredit No. 0234/PPK/SLK/2015 tanggal 13 Februari 2015sehubungan dengan perpanjangan masa fasilitas kredit.

Based on Credit Agreement No. 70 dated May 22, 2002notarized by Fulgensius Jimmy H.L.T., S.H., M.H., M.M.,the Company obtained credit facilities from BCA. This agreement has been amended several times, most recently by Amendment of Credit Agreement No. 0234/PPK/SLK/2015, dated February 13, 2015 inconnection with extension of term credit facilities.

Fasilitas-fasilitas kredit yang diperoleh Entitas Induk dari BCA terdiri atas:

Credit facilities obtained by the Company from BCA are as follows:

a. Fasilitas Kredit Time Revolving Loan (TRL), dengan batas maksimum pinjaman sebesar Rp 107.000, padatanggal 30 Juni 2015, 31 Desember 2014 dan 2013dan Rp 35.000 pada tahun 2012 dan 1 Januari 2012/31 Desember 2011. Fasilitas kredit ini dikenai bunga berkisar 11,00% - 11,50%, 11,00% - 11,50%, 10,00% - 11,00%, 10,00% - 10,50% dan 10,50% per tahun masing-masing pada tahun 2015, 2014, 2013, 2012 dan 2011 dan digunakan sebagai tambahan modal kerja. Jangka waktu fasilitas ini akan berakhir pada tanggal 31 Juli 2015 (Catatan 38).

a. Time Revolving Loan Credit Facility (TRL) with maximum credit limit amounting to Rp 107,000 as ofJune 30, 2015, December 31, 2014 and 2013 and Rp 35,000 as of January 1, 2012/December 31, 2011. This facility bears annual interest rate ranging from 11.00% - 11.50%, 11.00% - 11.50%, 10.00% - 11.00%, 10.00% - 10.50% and 10.50% in 2015, 2014, 2013, 2012 and 2011, respectively, and is used as addition for working capital. This facility will expire on July 31, 2015 (Note 38).

— F-91 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

78

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)Entitas Induk (lanjutan) The Company (continued)

PT Bank Central Asia Tbk (BCA) (lanjutan) PT Bank Central Asia Tbk (BCA) (continued)

b. Fasilitas Kredit Rekening Koran, dengan batas maksimum pinjaman sebesar Rp 60.000 pada tanggal 30 Juni 2015, 31 Desember 2014, dan 2013, Rp 30.000 pada 31 Desember 2012 dan Rp 20.000 pada 1 Januari 2012/31 Desember 2011. Fasilitas kredit ini dikenai bunga berkisar 11,25%-11,50%,11,25% - 11,50%, 10,25% - 11,25%, 10,25% - 10,75% dan 10,50% - 10,75% per tahun masing-masing pada tahun 2015, 2014, 2013, 2012 dan 2011, dan digunakan sebagai tambahan modal kerja. Jangka waktu fasilitas ini akan berakhir pada tanggal 31 Juli 2015 (Catatan 38).

b. Overdraft Credit Facility, with maximum credit limit amounting to Rp 60,000 as of June 30, 2015, December 31, 2014 and 2013, Rp 30,000 as ofDecember 31, 2012, and Rp 20,000 as of January 1, 2012/December 31, 2011. This facility bears annual interest rate ranging from 11.25%-11.50%, 11.25% -11.50%, 10.25% - 11.25%, 10.25% - 10.75%. and 10.50% - 10.75% in 2015, 2014, 2013, 2012 and 2011, respectively, and is used as addition for working capital. This facility will expire on July 31, 2015 (Note 38).

c. Fasilitas Kredit Omnibus Usance Letter of Credit,dengan batas maksimum pinjaman sebesarUSD 2.000.000 pada tanggal 30 Juni 2015, 31 Desember 2014, dan 2013. Fasilitas kredit ini digunakan sebagai pembiayaan atas pembelian impor bahan baku dan mesin dari supplier. Jangka waktu fasilitas ini akan berakhir pada tanggal 31 Juli 2015(Catatan 38). Pada tanggal 30 Juni 2015, tidak terdapat saldo terutang atas fasilitas kredit ini.

c. Omnibus Usance Letter of Credit Facility, with maximum credit limit amounting to USD 2,000,000 as of June 30, 2015, December 31, 2014 and 2013. This facility is used to finance the purchases of imported raw materials and machineries from supplier. This facility will expire on July 31, 2015 (Note 38). As of June 30, 2015 there is no outstanding balance for this credit facility.

d. Fasilitas Kredit Forward Line, dengan batas maksimum pinjaman sebesar USD 2.000.000 pada tanggal 30 Juni 2015 dan 31 Desember 2014. Fasilitas kredit ini digunakan untuk hedging atas kebutuhan penggunaan mata uang USD oleh Entitas Induk dan akan berakhir pada tanggal 31 Juli 2016 (Catatan 38).Pada tanggal 30 Juni 2015, tidak terdapat saldo terutang atas fasilitas kredit ini.

d. Forward Line Credit Facility, with maximum credit limit amounting to USD 2,000,000 as of June 30, 2015 andDecember 31, 2014. This credit facility is used for hedging of the Company need of USD and will expire on July 31, 2016 (Note 38). As of June 30, 2015 thereis no outstanding balance for this credit facility.

Fasilitas utang bank jangka pendek dan utang bank jangka panjang (Catatan 19) dari BCA dijamin secara gabungan :

Short-term bank loans and long-term bank loans (Note 19),obtained from BCA are jointly secured by :

a. Tanah seluas 5.210 m2 sesuai dengan surat hak milik No.1248/Citeko tanggal 1 Desember 1998 atas nama Harry Sanusi, pemegang saham dan presiden direktur,terletak di Desa Citeko, Kecamatan Cisarua, Kabupaten Bogor, Propinsi Jawa Barat.

b. Tanah seluas 1.418 m2 sesuai dengan surat hak milik No.1776/Sukomanunggal tanggal 29 Mei 2001 atas nama Harry Sanusi, pemegang saham dan presiden direktur, terletak di Desa Sukomanunggal, Kecamatan Sukomanunggal, Kota Surabaya, Propinsi Jawa Timur.

a. Land with total area of 5,210 sqm in accordance with certificate of title No.1248/Citeko, dated December 1, 1998, owned by Harry Sanusi, shareholder and president director, located at Citeko Village, Cisarua District, Bogor, West Java Province.

b. Land with total area of 1,418 sqm in accordance with certificate of title No.1776/Sukomanunggal, dated May 29, 2001, owned by Harry Sanusi, shareholderand president director, located at Sukomanunggal Village, Sukomanunggal District, Surabaya, East Java Province.

c. Tanah seluas 5.100 m2 sesuai dengan SHGB No. 1652/Tambaksawah tanggal 23 September 2004 atas nama Entitas Induk terletak di Desa Tambak Sawah, Kecamatan Waru, Kabupaten Sidoarjo, Propinsi Jawa Timur (Catatan 14).

d. Tanah seluas 608 m2 sesuai dengan SHGB No. 10/Margasuka tanggal 17 Januari 2004 atas nama Entitas Induk terletak di Kelurahan Margasuka, Kecamatan Babakan Ciparay, Kabupaten Tegallega, Propinsi Jawa Barat (Catatan 14).

c. Land with total area of 5,100 sqm in accordance with SHGB No. 1652/Tambaksawah dated September 23, 2004, owned by the Company, located at Tambak Sawah Village, Waru District, Sidoarjo, East Java Province (Note 14).

d. Land with total area of 608 sqm in accordance with SHGB No. 10/Margasuka dated January 17, 2004, owned by the Company, located at Margasuka village, Babakan Ciparay District, Tegallega, West Java Province (Note 14).

e. Tanah seluas 44 m2 sesuai dengan SHGB No.12/Margasuka tanggal 17 Februari 2004 atas nama Entitas Induk terletak di Kelurahan Margasuka, Kecamatan Babakan Ciparay, Kabupaten Tegallega, Propinsi Jawa Barat (Catatan 14).

e. Land with total area of 44 sqm in accordance with SHGB No.12/Margasuka dated February 17, 2004 owned by the Company, located at Margasuka Village, Babakan Ciparay District, Tegallega, West Java Province (Note 14).

— F-92 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

79

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank Central Asia Tbk (BCA) (lanjutan) PT Bank Central Asia Tbk (BCA) (continued)

f. Tanah seluas 1.426 m2 sesuai dengan SHGB No. 11/Margasuka tanggal 17 Februari 2004 atas nama Entitas Induk terletak di Kelurahan Margasuka, Kecamatan Babakan Ciparay, Kabupaten Tegallega, Propinsi Jawa Barat (Catatan 14).

g. Tanah seluas 115 m2 sesuai dengan SHGB No. 211/Keagungan tanggal 5 Mei 1981 atas nama Harry Sanusi, pemegang saham dan presiden direktur, terletak di Kelurahan Keagungan, Kecamatan Taman Sari, Kotamadya Jakarta Barat, Propinsi DKI Jakarta. (Catatan 14).

h. Akta jaminan fidusia No. 114 tanggal 29 Desember 2004 dengan objek jaminan berupa mesin-mesin (Catatan 14).

i. Jaminan personal dan tanah atas nama Harry Sanusi, pemegang saham dan presiden direktur (Catatan 7g).

f. Land with total area of 1,426 sqm in accordance with SHGB No. 11/Margasuka dated February 17, 2004 owned by the Company, located at Margasuka Village, Babakan Ciparay District, Tegallega, West Java Province (Note 14).

g. Land with total area of 115 sqm in accordance with SHGB No. 211/Keagungan dated May 5, 1981, owned by Harry Sanusi, shareholder and president director,located at Keagungan Vilage, Taman Sari District, West Jakarta, DKI Jakarta Province (Note 14).

h. Fiduciary deed No. 114 dated December 29, 2004 onthe Company ’s machineries (Note 14).

i. Personal guarantee and land by Harry Sanusi, shareholder and president director (Note 7g).

j. Akta jaminan fidusia No. 35 dengan objek jaminan berupa mesin-mesin milik Entitas Induk (Catatan 14).

k. Tanah seluas 2.600 m2 dan bangunan seluas 1.200 m2

sesuai dengan SHGB No. 4689/Sunter tanggal 22 Februari 2008 atas nama Entitas Induk yang terletak di Jalan Yos Sudarso No. 103 A Sunter Jaya, Kelurahan Sunter, Kecamatan Tanjung Priok, Kotamadya Jakarta Utara, Propinsi DKI Jakarta (Catatan 14).

j. Fiduciary deed No. 35 on the Company’s machineries(Note 14).

k. Land with total area of 2,600 sqm and building 1,200 sqm in accordance with SHGB No. 4689/Sunter dated February 22, 2008, owned by the Company, located at Jl. Yos Sudarso No. 103 A Sunter Jaya, Sunter, Tanjung Priok district, North Jakarta, DKI Jakarta Province (Note 14).

l. Tanah seluas 55.490 m2 sesuai dengan SHGB No. 27/Kertaraharja tanggal 1 Mei 2009 atas nama Entitas Induk yang terletak dalam Desa Kertaraharja, Kecamatan Cikembar, Kabupaten Sukabumi, Propinsi Jawa Barat, setempat dikenal Blok Panagan Kolot, diuraikan dalam Surut Ukur tanggal 13 April 2009 No.29/Kertaraharja/2009 (Catatan 14).

m. Tanah seluas 54.328 m2 sesuai dengan SHGB No. 65/Leuwi Limus tanggal 17 Januari 2013 atas nama Entitas Induk yang terletak dalam Desa Leuwi Lumis, Kecamatan Cikande, Kabupaten Serang, Propinsi Banten (Catatan 14).

l. Land with total area of 55,490 sqm in accordance with SHGB No. 27/Kertaraharja dated May 1, 2009 owned by the Company, located at Kertaraharja village, Cikembar district, Sukabumi, West Java Province, known as Blok Panagan Kolot, described in the letter of measure, dated April 13, 2009 No.29/Kertaraharja/2009 (Note 14).

m. Land with total area of 54,328 sqm in accordance with SHGB No. 65/Leuwi Limus dated January 17, 2013 owned by the Company, located at Leuwi LumisVillage, Cikande District, Serang, Banten Province (Note 14).

n. Tanah seluas 3.786 m2 sesuai dengan SHGB No. 218/Nambo Udik tanggal 17 Januari 2013 atas nama Entitas Induk yang terletak dalam Desa Nambo Udik, Kecamatan Cikande, Kabupaten Serang, Propinsi Banten (Catatan 14).

o. Tanah seluas 83.719 m2 sesuai dengan SHGB No. 545/546/547/548/Babakanjaya tanggal 8 November 2013 atas nama Entitas Induk yang terletak dalam Desa Babakanjaya, Kecamatan Parung Kuda, Kabupaten Sukabumi, Propinsi Jawa Barat (Catatan 14).

p. Akta jaminan fidusia No. 97 dengan objek jaminan berupa mesin-mesin milik Entitas Induk (Catatan 14).

q. Akta jaminan fidusia No. 60 dengan objek jaminan berupa persediaan milik Entitas Induk (Catatan 8).

n. Land with total area of 3,786 sqm in accordance with SHGB No. 218/Nambo Udik dated January 17, 2013 owned by the Company, located at Nambo Udik village, Cikande district, Serang, Banten Province (Note 14).

o. Land with total area of 83,719 sqm in accordance with SHGB No. 545/546/547/548/Babakanjaya dated November 8, 2013 owned by the Company, located at Babakanjaya village, Parung Kuda district, Sukabumi, West Java Province (Note 14).

p. Fiduciary deed No. 97 on the Company’s machineries(Note 14).

q. Fiduciary deed No. 60 on the Company’s inventories (Note 8).

r. Akta jaminan fidusia No. 72 dengan objek jaminan berupa 41 mesin berikut peralatan milik Entitas Induk (Catatan 14).

s. Akta jaminan fidusia No. 61 dengan objek jaminan berupa piutang usaha milik Entitas Induk (Catatan 6).

t. Akta jaminan fidusia No. 138 dan No. 13 dengan objek jaminan berupa mesin-mesin milik Entitas Induk (Catatan 14).

r. Fiduciary deed No. 72 on the Company’s 41 machineries along with equipments (Note 14).

s. Fiduciary deed No. 61 on the Company’s trade receivables (Note 6).

t. Fiduciary deed No. 138 and No. 13 on the Company’s machineries (Note 14).

— F-93 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

80

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank Central Asia Tbk (BCA) (lanjutan) PT Bank Central Asia Tbk (BCA) (continued)

Selama pinjaman terhadap BCA belum dilunasi, tanpa persetujuan tertulis BCA, Entitas Induk dilarang melakukan aktivitas antara lain sebagai berikut:

During the term of the loan with BCA, without the prior written consent from BCA, the Company is prohibited from conducting the following activities:

a. Memperoleh pinjaman uang atau kredit baru dari pihak lain dan/atau mengikat diri sebagai penanggung/penjamin dalam bentuk dan dengan apapun dan/atau mengagunkan harta kekayaan kepada pihak lain.

b. Meminjam uang, termasuk tetapi tidak terbatas kepada perusahaan afiliasi, kecuali dalam rangka menjalankan usaha sehari-hari.

a. Obtain loans or new credit from other parties and/or bind themselves as underwriter/guarantor in any form and by any and/or mortgaging assets to another party.

b. Borrow money, including but not limited to its affiliated companies, except to run the day-to-day business.

c. Melakukan peleburan, penggabungan, pembubaran atau pengambilalihan.

d. Membebankan bunga atas pinjaman pemegang saham.

c. Conduct merger, dismissal or takeover.

d. Charge interest on shareholder loans.

Selama pinjaman terhadap BCA belum dilunasi, Entitas Induk wajib memberikan pemberitahuan kepada BCA, jika melakukan aktivitas antara lain sebagai berikut:

During the term of the loan with BCA, the Company should notifiy to BCA, if conducting the following activities:

a. Melakukan pembagian/pembayaran dividen kepada para pemegang saham (Catatan 38).

b. Mengubah susunan pengurus, susunan pemegang saham dan nilai saham Entitas Induk.

a. Distribute/pay, dividend to shareholders (Note 38).

b. Change the composition of the board, shareholders and the value of the Company’s share.

Berdasarkan Surat Permohonan Pengesampingan No.003/CF-BT/BBCA/062015, tanggal 17 Juni 2015, Entitas Induk memperoleh persetujuan dari BCA untuk permohonan pengesampingan atas beberapa larangan atau pembatasan dalam Perjanjian Kredit terutama sehubungan dengan rencana Perusahaan untuk mengubah status kelembagaan dan anggaran dasar (Catatan 38).

Based on the Application for Waiver Letter No.003/CF-BT/BBCA/062015, dated June 17, 2015 the Company obtained approval from BCA to get waiver for some covenants in the Credit Agreements especially in connection with the Company’s plan to change its institutional status and articles of incorporation (Note 38).

Selama jangka waktu pinjaman, Entitas Induk harus menjaga dan mempertahankan debt service coverage ratiominimum 1:1.

During the term of the loan, the Company must keep and maintain debt service coverage ratios at a minimum 1:1.

Pada tanggal 30 Juni 2015, Grup mempunyai debt service coverage ratio sebesar 2,99.

As of June 30, 2015, the Group’s debt service coverage ratio was 2.99.

Beban bunga dari utang bank jangka pendek dari BCAuntuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 2012, disajikan sebagai “Beban Bunga” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian (Catatan 30).

Interest expenses of short-term bank loans from BCA for the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012 are presented as “Interest Expenses” in the consolidated statements of profit or loss and other comprehensive income (Note 30).

— F-94 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

81

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank Index Selindo (Index) PT Bank Index Selindo (Index)

Fasilitas-fasilitas kredit yang diperoleh Entitas Induk dari Index terdiri atas:

Credit facilities obtained by the Company from Index are as follows:

a. Fasilitas Kredit Rekening Koran, dengan batasmaksimum pinjaman sebesar Rp 35.000 pada tanggal 1 Juli 2014. Fasilitas kredit ini dikenai bunga 13% per tahun dan digunakan sebagai tambahan modal kerja. Jangka waktu fasilitas ini akan berakhir pada tanggal 1 Juli 2015 (Catatan 38).

a. Overdraft Credit Facility, with maximum credit limit amounting to Rp 35,000 in July 1, 2014. This facility bears annual interest rate ranging from 13% in 2014 and is being used as addition for working capital. This facility will expire on July 1, 2015. (Note 38)

b. Fasilitas Usance Letter of Credit dengan batas maksimum pinjaman sebesar USD 50.000 dan Trust Receipt sebesar Rp 8.625 . Fasilitas kredit ini dikenai bunga sebesar 12,50% per tahun dan digunakan sebagai tambahan modal kerja. Entitas Induk telah melakukan pelunasan atas Fasilitas Kredit Trust Receipt dan Fasilitas Usance Letter of Credit (LC) masing-masing pada tanggal 18 Desember 2013 dantanggal 27 Juli 2014.

b. The Company obtained a credit facility Usance Letterof Credit (LC) with a maximum credit limit amounting to USD 50,000 and sublimit Trust Receipt of Rp 8,625. This facility bears annual interest rate 12.50% and was used as additional working capital.Trust Receipt Facility and Usance Letter of Credit (LC) has been fully paid by the Company on December 18,2013 and July 27, 2014, respectively.

Atas fasilitas utang bank jangka pendek dan utang bank jangka panjang (Catatan 19) dari Index, Entitas Induk memberikan jaminan secara gabungan sebagai berikut:

Short-term bank loans and long-term bank loans obtained from Index (Note 19), are jointly secured by :

a. Satu bidang tanah Sertifikat Hak Guna Bangunan No. 598 seluas 2.537 m2, terletak di Kelurahan Kapuk Muara, Kecamatan Penjaringan, Kotamadya Jakarta Utara, Propinsi DKI Jakarta tercatat atas nama Entitas Induk (Catatan 14).

b. Satu bidang tanah Sertifikat Hak Guna Bangunan No. 594 seluas 3.193 m2, terletak Kelurahan Kapuk Muara, Kecamatan Penjaringan, Kotamadya Jakarta Utara, Propinsi DKI Jakarta tercatat atas nama Entitas Induk (Catatan 14).

c. Fidusia persediaan bahan baku milik Entitas Induk (Catatan 8).

a. Land with total area of 2,537 sqm with certificate of title No. 598, located at Kapuk Muara Villlage, Penjaringan District, North Jakarta, DKI Jakarta Province owned by the Company (Note 14).

b. Land with total area of 3,193 sqm with certificate of title No. 594, located at Kapuk Muara Village, Penjaringan District, North Jakarta, DKI Jakarta Province owned by the Company (Note 14).

c. Fiduciary deed on the Company’s raw materials (Note 8).

Selama jangka waktu pinjaman, Entitas Induk tidak boleh melakukan aktivitas sebagai berikut, tanpa persetujuan tertulis dari Index, antara lain:

During the term of the loan, the Company is prohibited from conducting the following activities, without the written consent of Index, such as:

a. Membuat suatu perikatan jaminan atau perjanjian utang lain atau perjanjian lain yang syarat-syaratnya akan bertentangan dengan Perjanjian Kredit Index.

b. Menyewakan, menjual, mengalihkan atau dengan cara lain melepas barang jaminan kepada pihak lain.

c. Mengajukan permohonan pernyataan pailit kepada Pengadilan Niaga untuk menyatakan pailit dari Debitor.

a. Create a gurantee engagement or other debt agreement or other agreement which terms would be contrary to the Index Credit Agreement.

b. Rent, sell, transfer or otherwise release the collateral to other parties.

c. File for bankruptcy declaration to the Commercial Court to declare the bankruptcy from the debtor.

Beban bunga dari utang bank jangka pendek dari Indexuntuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 2012, disajikan sebagai “Beban Bunga” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian (Catatan 30).

Interest expenses of short-term bank loans from Index for the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012 are presented as “Interest Expenses” in the consolidated statements of profit or loss and other comprehensive income (Note 30).

— F-95 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

82

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank Ganesha (Ganesha) PT Bank Ganesha (Ganesha)

Fasilitas-fasilitas kredit yang diperoleh Entitas Induk dari Ganesha terdiri atas:

Credit facilities obtained by the Company from Ganesha are as follows :

a. Fasilitas Kredit Revolving Loan I, diperoleh pada

tanggal 14 Desember 2006 berdasarkan Surat Perjanjian Kredit No. 096/STL/KRD/KGD/2006, dengan batas maksimum pinjaman sebesar Rp 25.000. Fasilitas kredit ini dikenai bunga sebesar 7,50% - 7,75% dan 7,75% - 8,25% per tahun masing-masing pada tahun 2013 dan 2012 dan digunakan sebagai tambahan modal kerja. Perjanjian kredit ini telah mengalami beberapa kali perubahan, terakhir berdasarkan Surat No. 141/PJPK/KRD/KGD/2012, tanggal 13 Desember 2012 sehubungan denganperpanjangan masa fasilitas kredit yang berakhir pada tanggal 14 Desember 2013. Pinjaman ini telah dilunasi Entitas Induk pada tanggal 28 Mei 2013.

a. Revolving Loan I Credit Facility was obtained on December 14, 2006 based on Credit Agreement No. 096/STL/KRD/KGD/2006, with maximum credit limit amounting to Rp 25,000. This facility bears annualinterest rate ranging 7.50% - 7.75% and 7.75% - 8.25%in 2013 and 2012, respectively, and was used for additional working capital. This credit agreement has been amended several times, most recently by Letter No. 141/PJPK/KRD/KGD/2012, dated December 13, 2012 in connection with extension of term credit facilities that expired on December 14, 2013. This loan has been fully paid by the Company on May 28, 2013.

b. Fasilitas Kredit Revolving Loan II, diperoleh pada tanggal 14 Desember 2006 berdasarkan Surat Perjanjian Kredit No. 096/STL/KRD/KGD/2006, dengan batas maksimum pinjaman sebesar Rp 17.500. Pinjaman ini dikenai bunga sebesar 7,50% - 7,75% dan 7,75% - 8,25% per tahun masing-masing pada tahun 2013 dan 2012 dan digunakan sebagai tambahan modal kerja. Perjanjian kredit ini telah mengalami beberapa kali perubahan, terakhir berdasarkan surat No. 142/PJPK/KRD/KGD/2012, tanggal 13 Desember 2012 sehubungan dengan perpanjangan masa fasilitas kredit yang berakhir pada tanggal 14 Desember 2013. Pinjaman ini telah dilunasi Entitas Induk pada tanggal 28 Mei 2013.

b. Revolving Loan II Credit Facilitiy was obtained on December 14, 2006 based on Credit Agreement No. 096/STL/KRD/KGD/2006, with maximum credit limit amounting to Rp 17,500. This facility bears annualinterest rate ranging 7.50% - 7.75% and 7.75% - 8.25%in 2013 and 2012, respectively, and was used for additonal working capital. This credit agreement has been amended several times, most recently by letter No. 142/PJPK/KRD/KGD/2012, dated December 13, 2012 in connection with extension of term credit facilities that expired on December 14, 2013. This loan has been fully paid by the Company on May 28, 2013.

Fasilitas-fasilitas kredit tersebut dijamin secara personal oleh Harry Sanusi, pemegang saham dan presiden direktur(Catatan 7g).

These credit facilities are secured personally by Harry Sanusi, the Company’s shareholder and president director (Note 7g).

Beban bunga dari utang bank jangka pendek dari Ganesha untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2013 dan 2012, disajikan sebagai “Beban Bunga” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian (Catatan 30).

Interest expenses of short-term bank loans from Ganesha for the years ended December 31, 2013 and 2012 are presented as “Interest Expenses” in the consolidated statements of profit or loss and other comprehensive income (Note 30).

PT Dutalestari Sentratama (DLS) PT Dutalestari Sentratama (DLS)

Pinjaman bank yang diperoleh DLS terdiri atas: Bank loans obtained by DLS are as follows:

PT Bank Danamon Indonesia Tbk (Danamon) PT Bank Danamon Indonesia Tbk (Danamon)

Berdasarkan akta notaris Dr. Ir. Yohanes Wilion, S.E., S.H., MM. No. 55 tanggal 22 Juli 2010, DLS memperoleh beberapa fasilitas pinjaman dari Danamon. Perjanjian ini telah mengalami beberapa kali perubahan, terakhir dengan Perjanjian Perpanjangan terhadap Perjanjian Kredit No. PPWK/168/0714 tanggal 20 Agustus 2014sehubungan dengan perpanjangan masa fasilitas pinjaman.

Based on Notarial Deeds of Dr. Ir. Yohanes Wilion, S.E., S.H., MM. No. 55 dated July 22, 2010, DLS obtained some loan facilities from Danamon. This agreement has been amended several times, most recently by Extension Agreement to Credit Agreement No. PPWK/168/0714, dated August 20, 2014 in connection with extension of term loan facilities.

— F-96 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

83

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)

PT Dutalestari Sentratama (DLS) (lanjutan) PT Dutalestari Sentratama (DLS) (continued)

PT Bank Danamon Indonesia Tbk (Danamon) (lanjutan) PT Bank Danamon Indonesia Tbk (Danamon)(continued)

Fasilitas-fasilitas pinjaman yang diperoleh DLS dari Danamon antara lain adalah sebagai berikut:

Loan facilities obtained by DLS from Danamon are as follows:

a. Fasilitas Open Account Financing dengan batas maksimum pinjaman sebesar Rp 83.500. Fasilitas ini dikenai bunga pinjaman sebesar 12,00% pada tahun 2015 dan 2014, 16% pada tahun 2013 dan 2012 dandigunakan sebagai modal kerja. Fasilitas ini dibayarkan 3 bulan setelah tanggal pencarian. Jangka waktu fasilitas ini akan berakhir pada tanggal 22 Juli 2015 (Catatan 38).

a. Open Account Financing Facility with maximum credit amounted to Rp 83,500. This facility bears annual interest rate of 12.00% in 2015 and 2014, 16.00% in 2013 and 2012, respectively, and used as working capital. This facility is paid 3 months after the date of disbursement. This facility will expire on July 22, 2015(Note 38).

b. Fasilitas Kredit Rekening Koran dengan batas maksimum pinjaman sebesar Rp 15.000. Fasilitas ini dikenai bunga pinjaman sebesar 12,00% pada tahun 2015 dan 2014, 11,00% pada tahun 2013 dan 2012, dan 11,25% pada tahun 2011 dan digunakan sebagai pengadaan barang persediaan. Jangka waktu fasilitas ini akan berakhir pada tanggal 22 Juli 2015 (Catatan 38).

b. Overdraft Facility with maximum credit amounted to Rp 15,000. This facility bears annual interest rate of12.00% in 2015 and 2014, 11.00% in 2013 and 2012, and 11.25% in 2011 and used as purchase of inventories. This facility will expire on July 22, 2015(Note 38).

Untuk fasilitas utang bank jangka pendek dan jangka panjang dari Danamon (Catatan 19), DLS memberikan jaminan secara gabungan sebagai berikut:

For the short-term and long-term bank loan from Danamon(Note 19), DLS provide a combined collateral as follows:

a. Tanah dan bangunan milik DLS yang terletak di beberapa lokasi (Catatan 14).

b. Jaminan fidusia atas persediaan milik DLS (Catatan 8).c. Jaminan fidusia atas piutang usaha milik DLS

(Catatan 6).d. Deposito atas nama DLS (Catatan 11).e. Jaminan pribadi atas nama Harry Sanusi, pemegang

saham dan presiden direktur (Catatan 7g).

a. Land and buildings owned by the DLS located in several locations (Note 14).

b. Fiduciary on inventories owned by DLS (Note 8).c. Fiduciary on trade receivables owned by DLS (Note 6).

d. Deposits owned by DLS (Note 11).e. Personal guarantee of by Harry Sanusi, the Company’s

shareholder and precident director (Note 7g).

Selama liabilitas DLS terhadap Danamon belum dilunasi, tanpa persetujuan tertulis dari Danamon, DLS dilarang melakukan aktivitas antara lain sebagai berikut:

As long as DLS’s liabilities to the Danamon has not been paid, without the written consent of Danamon, DLS is prohibited from conducting activities as follows:

a. Menjual, mengalihkan hak atau menyerahkan pemakaian aset milik DLS, kecuali dalam rangka menjalankan usaha DLS.

b. Menjaminkan aset DLS kepada pihak lain.c. Mengadakan perjanjian yang dapat menimbulkan

liabilitas DLS, kecuali dalam rangka menjalankan usaha DLS.

d. Menjamin pihak ketiga lainnya.e. Mendapatkan pinjaman dari bank lain.

a. Sell, transfer or hand over use of the assets of DLS,except to run DLS’s business activity.

b. Collaterized DLS’s assets to other parties.c. Enter into any agreements, which might rise liabilities

to DLS, except to run DLS’s business activity.

d. Provide corporate guarantee to other third parties.e. Obtain loan from other banks.

f. Merubah sifat dan kegiatan usaha DLS.g. Membayar utang dari pemegang saham.h. Memberikan imbalan atau sejenisnya kepada

karyawan Danamon.

f. Change DLS’s nature and business operations.g. Pay shareholders’ loan.h. Give rewards to Danamon’s employees.

Selama jangka waktu pinjaman, DLS harus menjaga dan mempertahankan jumlah aset lancar (kas, piutang usaha dan persediaan) lebih besar dari liabilitas lancar (utang bank jangka pendek dan utang usaha).

During the term of the loan, DLS must keep and maintain that the total current assets (cash, trade receivables and inventories) is higher than total current liabilities (short-term bank loans and trade payables).

— F-97 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

84

15. UTANG BANK JANGKA PENDEK (lanjutan) 15. SHORT-TERM BANK LOANS (continued)

PT Dutalestari Sentratama (DLS) (lanjutan) PT Dutalestari Sentratama (DLS) (continued)

PT Bank Danamon Indonesia Tbk (Danamon) (lanjutan) PT Bank Danamon Indonesia Tbk (Danamon)(continued)

Beban bunga dari utang bank jangka pendek dari Danamon untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 2012, disajikan sebagai “Beban Bunga” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian (Catatan 30).

Interest expenses of short-term bank loans from Danamonfor the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012 are presented as “Interest Expenses” in the consolidated statements of profit or loss and other comprehensive income (Note 30).

PT Bank DBS Indonesia (DBS) PT Bank DBS Indonesia (DBS)

Berdasarkan Akta Notaris Perjanjian Fasilitas PerbankanNo. 41 tanggal 25 September 2012, DLS memperoleh fasilitas pembiayaan utang (Account Payable Financing Facility) dari DBS. Perjanjian tersebut telah mengalami beberapa perubahan, terakhir dengan Perubahan atas Perjanjian Fasilitas Perbankan No. 482/PFPA-DBS/VIII/2014 tanggal 15 Agustus 2014 sehubungan dengan perpanjangan masa fasilitas dan batas maksimum pinjaman. Batas maksimum fasilitas ini sebesar Rp 250.000 dan dikenakan bunga pinjaman berkisar 11,50% - 13,00% pada tahun 2015, 11,50% - 12,00% pada tahun 2014, 12,00% pada tahun 2013 dan 10,50% pada tahun 2012. Fasilitas ini digunakan untuk keperluan pengadaan barang persediaan dan akan berakhir padatanggal 15 Agustus 2015.

Based on Notarial Deed Bank Facility Agreement No. 41 dated September 25, 2012, DLS obtained Account Payable Financing Facility from DBS. This agreement has been amended several times, most recently by Amendment to the Banking Facility Agreement No. 482/PFPA-DBS/VIII/2014 dated August 15, 2014 in connection with extension and limit of term loan facilities . This facility has maximum credit amounting to Rp 250,000 and bears annual interest rate at 11.50% - 13.00% in 2015, 11.50% -12.00% in 2014, 12.00% in 2013, 10.50% in 2012. This facility is used for procurement of inventories and will expire on August 15, 2015.

Untuk fasilitas ini, DLS memberikan jaminan sebagai berikut:

For this facility, DLS provided collaterals as follows:

a. Perjanjian gadai atas deposito milik DLS dan/atau Harry Sanusi yang disimpan di Bank dengan nilai penjaminan sekurang-kurangnya 15% dari jumlah terhutang (Catatan 11).

b. Jaminan fidusia atas persediaan milik DLS (Catatan 8).c. Jaminan fidusia atas piutang milik DLS (Catatan 6).d. Jaminan pribadi atas nama Harry Sanusi, pemegang

saham dan presiden direktur (Catatan 7g).

a. Pledge agreement over DLS’s and or Harry Sanusi’sdeposit in bank with value at least 15% of total loan (Note 11).

b. Fiduciary on inventories owned by DLS (Note 8).c. Fiduciary on trade receivables owned by DLS (Note 6).d. Personal guarantee owned by Harry Sanusi, the

Company’s shareholder and president director (Note 7g).

Selama jangka waktu pinjaman DLS harus menjaga dan mempertahankan gearing ratio (jumlah utang bank/jumlah ekuitas) maksimal sebesar 5x, debt service ratio minimalsebesar 1,25x dan networth tidak berkurang lebih dari 25,00% setiap tahun.

During the term of the loan, DLS must keep and maintain gearing ratios (total bank loan/total equity) maximum of 5x,debt service ratio minimum debt service ratio of 1.25x and networth is not decreased by more than 25.00% annually.

Pada tanggal 30 Juni 2015, DLS mempunyai gearing ratiosebesar 1,45, debt service ratio sebesar 3,76, dannetworth meningkat sebesar 130%.

As June 30, 2015, DLS has gearing ratio of 1.45, debt service ratio of 3.76, and networth increased by 130%.

Beban bunga dari utang bank jangka pendek dari DBSuntuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 2012, disajikan sebagai “Beban Bunga” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian (Catatan 30).

Interest expenses of short-term bank loan from DBS for the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012 are presented as “Interest Expenses” in the consolidated statements of profit or loss and other comprehensive income (Note 30).

— F-98 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

85

16. UTANG USAHA 16. TRADE PAYABLES

Utang usaha merupakan utang atas biaya ekspedisi, pembelian bahan baku dan bahan pendukung sehubungan dengan proses produksi yang dilakukan oleh Grup.

Trade payables represent payables for expedition expenses, purchase of raw materials and supplies in connection with the production process carried out by the Group.

Rincian utang usaha berdasarkan nama pemasok adalah sebagai berikut:

The details of trade payables based on suppliers’ name are as follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Pihak ketiga Third parties PT Bumimulia Indah PT Bumimulia Indah Lestari 31.446 24.119 24.621 25.612 12.653 Lestari PT Megasetia Agung PT Megasetia Agung Kimia 20.486 10.549 6.480 4.741 3.310 Kimia PT First Position 18.903 10.450 570 - - PT First Position PT Mane Indonesia 18.106 10.426 12.816 11.397 10.022 PT Mane Indonesia PT Dwi Sapta Pratama 16.501 27.467 22.382 16.150 4.612 PT Dwi Sapta Pratama PT Hasil Raya Industri 13.460 10.497 14.256 10.581 8.666 PT Hasil Raya Industri PT Parama PTParama Mandyadana 11.582 10.399 9.916 9.409 8.903 Mandyadana Crown Beverage Cans Crown Beverage Cans Singapore Pte. Ltd., 10.877 7.866 5.394 - - Singapore Pte. Ltd., Great China Great China Metal Ind. Co., Ltd 10.590 27.213 3.232 2.176 5.013 Metal Ind. Co., Ltd PT Avantchem 9.527 3.864 3.192 3.222 3.449 PT Avantchem PT Tritunggal PT Tritunggal Arthamakmur 7.971 7.029 20.766 18.935 13.308 Arthamakmur PT Dian Cipta PT Dian Cipta Perkasa 7.746 5.906 3.874 3.424 285 Perkasa PT Sugar Labinta 6.723 3.332 4.184 2.428 472 PT Sugar Labinta PT Karya Indah PT Karya Indah Multiguna 5.832 4.760 5.341 6.267 5.867 Multiguna PT Master Label 4.180 4.108 5.892 5.411 2.928 PT Master Label PT ICMD Indonesia 1.890 3.120 9.818 - - PT ICMD Indonesia Toko Megah Sarana - - - 6.403 1 Toko Megah Sarana Lain-lain ( masing - masing Other (under each di bawah Rp 5.000) 138.797 97.863 145.054 102.362 99.526 below Rp 5,000) Jumlah pihak ketiga 334.617 268.968 297.788 228.518 179.015 Total third partiesPihak berelasi (Catatan 7c) 114.851 157.227 120.611 44.987 41.732 Related parties (Note 7c) Jumlah Utang Usaha 449.468 426.195 418.399 273.505 220.747 Total Trade Payables

— F-99 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

86

16. UTANG USAHA (lanjutan) 16. TRADE PAYABLES (continued)

Rincian umur utang usaha adalah sebagai berikut: The details of trade payables based on their aging are as follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Pihak ketiga Third parties Belum jatuh tempo 205.368 227.424 218.302 105.620 84.437 Not yet due Sudah jatuh tempo : Past due : 1 - 30 hari 100.528 36.961 66.107 93.515 67.929 1 - 30 days 31 - 60 hari 22.585 3.642 7.638 9.032 11.848 31 - 60 days 61 - 90 hari 1.965 941 411 558 3.651 61 - 90 days Lebih dari More than 90 hari 4.171 - 5.330 19.793 11.150 90 days Jumlah 334.617 268.968 297.788 228.518 179.015 Total

Pihak berelasi (Catatan 7b) Related parties (Note 7b) Belum jatuh tempo 99.074 155.952 65.666 11.834 553 Not yet due Sudah jatuh tempo : Past due : 1 - 30 hari 5.749 1.275 54.945 13.228 3.087 1 - 30 days 31 - 60 hari 10.028 - - 3.485 1.762 31 - 60 days 61 - 90 hari - - - 3.086 4.315 61 - 90 days Lebih dari More than 90 hari - - - 13.354 32.015 90 days Jumlah 114.851 157.227 120.611 44.987 41.732 Total Jumlah Utang Usaha 449.468 426.195 418.399 273.505 220.747 Total Trade Payables

Rincian utang usaha berdasarkan mata uang adalah sebagai berikut:

The details of trade payables based on their original currency are as follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Rupiah 294.627 309.925 311.652 202.631 166.385 RupiahDolar Amerika Serikat United States Dollar (USD 10.236.139 (USD 10,236,139 as tanggal 30 Juni 2015, of June 30, 2015 USD 9.335.170 tanggal USD 9,335,170 as 31 Desember 2014, of December 31, 2014 USD 6.423.427 tanggal USD 6,423,427 as 31 Desember 2013, of December 31 2013, USD 7.153.360 USD 7,153,360 as tanggal 31 Desember of December 31, 2012, 2012, dan USD 5.953.106 and USD 5,953,106 as 1Januari 2012/ of January 1, 2012/ 31 Desember 2011) 136.468 116.130 78.295 69.173 53.983 December 31, 2011)

— F-100 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

87

16. UTANG USAHA (lanjutan) 16. TRADE PAYABLES (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Peso Filipina Philippine Peso (PHP 58.416.160 (PHP 58,416,160 as tanggal 30 Juni 2015 of June 30, 2015 and dan PHP 89.833.381 PHP 89,833,381 as tanggal of December 31, 31 Desember 2013) 17.253 - 24.662 - - 2013)Euro Euro (EUR 42.308 (EUR 42,308 as tanggal 30 Juni 2015 of June 30, 2015 EUR 6.096 EUR 6,096 as tanggal of December 31, 31 Desember 2014, 2014, EUR 135.366 EUR 135,366 tanggal as of December 31, 31 Desember 2013, 2013, EUR 131.675 EUR 131,675 tanggal 31 Desember as of December 31, 2012 dan 2012 and EUR 9.785 EUR 9,785 tanggal 1 Januari as of January 1, 2012/31 Desember 2012/December 31, 2011) 631 92 2.277 1.687 115 2011)Ringgit Malaysia Malaysia Ringgit (MYR 70.582 tanggal (MYR 70,582 as of 30 Juni 2015) 249 - - - - June 30, 2015)Dong Vietnam Vietnam Dong (VND 348.240.565 (VND 348,240,565 tanggal 30 Juni 2015, as of June 30, 2015, VND 37.981.951 VND 37,981,951 as tanggal of December 31, 31 Desember 2014 2014 and dan VND 49.039.943 VND 49,039,943 tanggal as of December 31 Desember 2013) 213 22 29 - - 31, 2013)Dolar Singapura Singapore Dollar (SGD 2.689 (SGD 2,689 as of tanggal 30 Juni 2015, June 30, 2015 SGD 2.735 SGD 2,735 as tanggal of December 31, 31 Desember 2014, 2014, SGD 151.371 SGD 151,371 tanggal as of December 31, 31 Desember 2013, 2013, SGD 595 SGD 595 tanggal 31 Desember as of December 31, 2012 dan 2012 and SGD 540 SGD 540 tanggal 1 Januari as of January 1, 2012/31 Desember 2012/December 31, 2011) 27 26 1.457 4 4 2011)

— F-101 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

88

16. UTANG USAHA (lanjutan) 16. TRADE PAYABLES (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Yen Jepang Japan Yen (JPY 231.778 (JPY 231,778 as tanggal of December 31, 31 Desember 2013, 2013, JPY 87.112 JPY 87,112 tanggal 31 Desember as of December 31, 2012 dan 2012 and JPY 2.227.500 JPY 2,227,500 tanggal 1 Januari as of January 1, 2012/31 Desember 2012/December 31, 2011) - - 27 10 260 2011) Jumlah 449.468 426.195 418.399 273.505 220.747 Total

Pada tanggal 30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011, terdapat jaminan yang diberikan oleh Entitas Induk kepada PT Perusahaan Gas Negara (Persero) Tbk atas penggunaan gas dan listrik (Catatan 11).

On June 30, 2015, December 31, 2014, 2013, 2012 and January 1st 2012/31 December 2011, there is a guarantee given by the Company to PT Perusahaan Gas Negara (Persero) Tbk for the use of gas and electricity (Note 11).

17. PERPAJAKAN 17. TAXATION

a. Utang pajak a. Taxes payable

Akun ini terdiri dari: This account consists of:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4)

Entitas Induk The CompanyPajak penghasilan Income taxes

Pasal 4(2) 85 367 605 227 285 Article 4(2)Pasal 21 1.392 2.139 403 221 173 Article 21

Pasal 23 467 757 393 229 339 Article 23 Pasal 25 1.092 1.161 718 752 616 Article 25

Pasal 26 215 1.046 822 370 128 Article 26Pasal 29 27.397 5 300 322 656 Article 29Pasal 29 - Article 29 -

tahun lalu - 34 - - - previous yearPajak Pertambahan Nilai 7.686 5.640 3.697 2.773 3.991 Value Added Tax

Sub-jumlah 38.334 11.149 6.938 4.894 6.188 Sub-total

— F-102 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

89

17. PERPAJAKAN (lanjutan) 17. TAXATION (continued)

a. Utang pajak (lanjutan) a. Taxes payable (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4)

Entitas Anak SubsidiariesPajak penghasilan Income taxes

Pasal 4(2) 2 1 - - - Article 4(2)Pasal 21 1.014 1.036 400 63 45 Article 21

Pasal 23 39 29 - - - Article 23 Pasal 25 259 192 106 73 - Article 25

Pasal 29 512 1.302 1.148 470 324 Article 29Lainnya 45 221 9 - - Others

Pajak Pertambahan Nilai 2.469 2.153 818 395 211 Value Added Tax Sub-jumlah 4.340 4.934 2.481 1.001 580 Sub-total Jumlah 42.674 16.083 9.419 5.895 6.768 Total

b. Beban pajak penghasilan - Bersih b. Income tax expenses - Net

Akun ini terdiri dari: This account consists of the following:

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated Note 4) Manfaat (beban) Income taxes benefits pajak penghasilan (expenses) Kini (39.715) (16.309) (26.448) (19.339) (15.096) Current Tangguhan (5.488) (3.724 ) (7.825) 302 2.196 Deferred Jumlah (45.203) (20.033) (34.273) (19.037) (12.900) Total

c. Pajak Penghasilan - Kini c. Income Tax - Current

Rekonsiliasi antara laba sebelum beban pajak penghasilan - bersih seperti yang disajikan dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian dengan laba kena pajak untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 2012 adalah sebagai berikut:

Reconciliation between income before income tax expenses - net as presented in the consolidated statements of profit or loss and other comprehensive income with taxable income for the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012 are as follows:

— F-103 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

90

17. PERPAJAKAN (lanjutan) 17. TAXATION (continued)

c. Pajak Penghasilan - Kini (lanjutan) c. Income Tax - Current (continued)

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated Note 4) Laba sebelum beban Income before income pajak penghasilan - tax expenses - net bersih menurut per consolidated laporan laba rugi statements of dan penghasilan profit or loss and komprehensif lain other comprehensive konsolidasian 186.539 69.522 137.528 77.493 39.158 income Bagian laba (rugi) penyertaan saham pada Entitas Share in net earnings Asosiasi - bersih 5.109 2.918 (2.118) 446 55 (loss) in Associates - net Eliminasi untuk konsolidasi (15.558) 3.555 2.997 (3.271) 8.425 Consolidated elimination Rugi sebelum beban Subsidiaries’ loss pajak penghasilan before income Entitas Anak (5.354) (613 ) (11.719) (5.720 ) (4.465) tax expense Rugi atas likuidasi Loss from liquidation of Entitas Asosiasi - - (8.858) - - Associates Laba sebelum beban Income before income pajak penghasilan tax expense Entitas Induk 170.736 75.382 117.830 68.948 43.173 of the Company Beda temporer : Temporary differences: Depreciation of Penyusutan aset tetap (25.464) (9.841 ) (24.059) - - fixed assets Penghapusan Write-off of obsolete persediaan usang (2.999) (3.839 ) (6.240) (13.565 ) (5.207) inventories Sewa (179) - (20) - - Lease Pencadangan bonus Provision of bonuses for karyawan 2.611 - - - - employees Penyisihan penurunan Allowance for impairment nilai dan persediaan value and inventories usang 2.093 - 2.999 6.240 13.565 obsolescence Penyisihan (penghapusan) Allowance (write- off) imbalan kerja for employees’ karyawan 1.563 (1.694 ) (3.575) 2.060 24 benefits Penghapusan Write-off of piutang usaha uncollectible trade tak tertagih - - (855) (1.294) 514 receivables Penyisihan atas Allowance for impairment kerugian penurunan losses of trade nilai piutang usaha - - - 855 (225) receivables Beda permanen : Permanent differences: Sumbangan dan Donations and jamuan 551 777 1.940 1.648 1.439 entertainment Pengobatan dan perawatan 528 668 1.493 372 1.552 Medical allowance Penyusutan kendaraan 313 - 814 983 571 Depreciation of vehicles Perawatan dan Repair and pemeliharaan 52 59 168 182 86 maintenance Pajak 49 42 340 168 43 Tax Telepon 27 47 86 196 155 Telephone

— F-104 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

91

17. PERPAJAKAN (lanjutan) 17. TAXATION (continued)

c. Pajak Penghasilan - Kini (lanjutan) c. Income Tax - Current (continued)

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated Note 4) Penghasilan yang Income subject telah dikenai to final pajak final income tax Pendapatan jasa giro (24) (57 ) (97) (88) (40) Interest income Pendapatan sewa - (300) (2.115) (480) (780) Rental income Lain-lain - 415 807 496 434 Others Laba kena Taxable income - pajak- Entitas Induk 149.857 61.659 89.516 66.721 55.304 the Company Beban pajak kini Current tax expenses Entitas Induk 37.465 15.414 22.379 16.680 13.826 The Company Entitas Anak 2.250 895 4.069 2.659 1.270 Subsidiaries Jumlah beban Total current pajak kini 39.715 16.309 26.448 19.339 15.096 tax expenses Pajak dibayar di muka Prepaid income tax Entitas Induk The Company Pasal 22 3.304 4.958 9.137 5.608 5.202 Article 22 Pasal 23 7 19 141 15 9 Article 23 Pasal 25 6.757 5.214 13.096 10.757 8.293 Article 25

Jumlah 10.068 10.191 22.374 16.380 13.504 Total Entitas Anak 1.738 896 2.767 1.511 800 Subsidiaries Jumlah pajak penghasilan Total prepaid dibayar di muka 11.806 11.087 25.141 17.891 14.304 income tax

Utang pajak penghasilan Income tax payable (pajak dibayar di muka) (prepaid tax) Entitas Induk 27.397 5.223 5 300 322 The Company Entitas Anak 512 (1) 1.302 1.148 470 Subsidiaries Jumlah utang pajak Total income tax penghasilan 27.909 5.223 1.307 1.448 792 payable Jumlah pajak dibayar di muka - 1 - - - Total prepaid tax

Entitas Induk telah melaporkan laba kena pajak tahun 2014, 2013, 2012 dan 2011 seperti yang disebutkan di atas, dalam Surat Pemberitahuan Tahunan (SPT) Pajak Penghasilan Badan yang dilaporkan kepada Kantor Pelayanan Pajak (KPP).

The Company has reported the taxable income for 2014, 2013, 2012 and 2011, as mentioned above, in the Annual Tax Return (SPT) of Corporate Income Tax which is submitted to the Tax Office.

d. Pajak tangguhan d. Deferred tax

Rincian aset (liabilitas) pajak tangguhan berdasarkanbeda temporer antara pelaporan komersial dan pajak dengan menggunakan tarif pajak yang berlaku pada tanggal 30 Juni 2015, 31 Desember 2014, 2013, 2012dan 1 Januari 2012/ 31 Desember 2011 adalah sebagai berikut:

Details of deferred tax assets (liabilities) from temporary differences between commercial and tax reporting by using the applicable tax rate as of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/ December 31, 2011 are as follows:

— F-105 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

92

17. PERPAJAKAN (lanjutan) 17. TAXATION (continued)

d. Pajak tangguhan (lanjutan) d. Deferred tax (continued)

30 Juni 2015/June 30, 2015

Saldo Awal/BeginningBalance

Efek Translasi/Effect of

Translation

Manfaat (Beban)Pajak

Tangguhan/Deferred Tax

Benefits(Expenses)

Dikreditkan pada Penghasilan

Komprehensif Lain/ Credited to Other Comprehensive

Income

Saldo Akhir/EndingBalance

Liabilitas pajak tangguhan -Entitas Induk

Deferred tax liabilities -The Company

Liabilitas imbalan kerja karyawan 4.976 - 391 324 5.691

Liabilities for employees’ benefits

Pencadangan bonuskaryawan - - 653 - 653

Provision of bonuses for employees

Penyisihan penurunan nilai dan persediaan usang 750 - (226) - 524

Allowance for impairment and obsolescence

of inventoriesPenyusutan (6.015) - (6.366) - (12.381) DepreciationSewa (5) - (45) - (50) Leases

Jumlah liabilitas pajak tangguhan - Entitas Induk (294) - (5.593) 324 (5.563)

Total deferred tax liabilities- The Company

Aset pajak tangguhan -Entitas Anak 6.395 185 105 (36) 6.649

Deferred tax assets -Subsidiaries

Jumlah aset pajak tangguhan 6.101 185 (5.488) 288 1.086 Total deferred tax assets

31 Desember 2014 / December 31, 2014(Disajikan kembali, Catatan 4/

As restated, Note 4)

Saldo Awal/BeginningBalance

Efek Translasi/Effect of

Translation

Manfaat (Beban)Pajak

Tangguhan/Deferred Tax

Benefits(Expenses)

Dikreditkan pada Penghasilan

Komprehensif Lain/ Credited to Other Comprehensive

Income

Saldo Akhir/EndingBalance

Liabilitas pajak tangguhan -Entitas Induk

Deferred tax liabilities-The Company

Liabilitas imbalan kerja karyawan 2.456 - (894) 3.414 4.976

Liabilities for employees’ benefits

Penyisihan penurunan nilai dan persediaan usang 1.560 - (810) - 750

Allowance for impairment and obsolescence

of inventoriesPenyusutan - - (6.015) - (6.015) DepreciationSewa - - (5) - (5) LeasesPenyisihan penurunan

kerugian nilai piutang usaha 214 - (214) - -

Allowance for impairment losses of trade

receivablesJumlah liabilitas pajak

tangguhan - Entitas Induk 4.230 - (7.938) 3.414 (294)

Total deferred tax liabilities- The Company

Aset pajak tangguhan -Entitas Anak 4.373 (126) 113 2.035 6.395

Deferred tax assets -Subsidiaries

Jumlah aset pajak tangguhan 8.603 (126) (7.825) 5.449 6.101 Total deferred tax assets

— F-106 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

93

17. PERPAJAKAN (lanjutan) 17. TAXATION (continued)

d. Pajak tangguhan (lanjutan) d. Deferred tax (continued)

31 Desember 2013 / December 31, 2013(Disajikan kembali, Catatan 4/

As restated, Note 4)

Saldo Awal/BeginningBalance

Akuisisi Entitas Anak/ Acquisition of Subsidiaries

Efek Translasi/Effect of

Translation

Manfaat (Beban)Pajak

Tangguhan/Deferred Tax

Benefits(Expenses)

Dikreditkan pada Penghasilan

Komprehensif Lain/ Credited to Other Comprehensive

Income

Saldo Akhir/EndingBalance

Aset pajak tangguhan -Entitas Induk

Deferred tax assets -The Company

Liabilitas imbalan kerja karyawan 2.852 - - 515 (911) 2.456

Liabilities for employees’ benefits

Penyisihan penurunan nilai dan persediaan usang 3.391 - - (1.831) - 1.560

Allowance for impairment and obsolescence

of inventoriesPenyisihan

penurunan kerugian nilai piutang usaha 324 - - (110) - 214

Allowance for impairment losses of trade

receivablesJumlah aset pajak

tangguhan -Entitas Induk 6.567 - - (1.426) (911) 4.230

Total deferred tax assets- The Company

Aset pajak tangguhan -Entitas Anak 1.619 897 488 1.728 (359) 4.373

Deferred tax assets -Subsidiaries

Jumlah aset pajak tangguhan 8.186 897 488 302 (1.270) 8.603 Total deferred tax assets

31 Desember 2012 / December 31, 2012(Disajikan kembali, Catatan 4/

As restated, Note 4)

Saldo Awal/Beginning

Balance

Efek Translasi/Effect of

Translation

Manfaat (Beban)Pajak

Tangguhan/Deferred Tax

Benefits(Expenses)

Dikreditkan pada Penghasilan

Komprehensif Lain/ Credited to Other Comprehensive

Income

Saldo Akhir/Ending Balance

Aset pajak tangguhan -Entitas Induk

Deferred tax assets -the Company

Penyisihan penurunan nilai dan persediaan usang 1.302 - 2.089 - 3.391

Allowance for impairment and obsolescence

of inventoriesLiabilitas imbalan kerja

karyawan 2.553 - 6 293 2.852Liabilities for employees’

benefitsPenyisihan penurunan

kerugian nilai piutang usaha 251 - 73 - 324

Allowance for impairment losses of trade

receivablesJumlah aset pajak

tangguhan - Entitas Induk 4.106 - 2.168 293 6.567

Total deferred tax assets- The Company

Aset pajak tangguhan -Entitas Anak 1.258 - 28 333 1.619

Deferred tax assets -Subsidiaries

Jumlah aset pajak tangguhan 5.364 - 2.196 626 8.186 Total deferred tax assets

— F-107 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

94

17. PERPAJAKAN (lanjutan) 17. TAXATION (continued)

d. Pajak tangguhan (lanjutan) d. Deferred tax (continued)

1 Januari 2012/ 31 Desember 2011January 1, 2012/ December 31 2011,

(Disajikan kembali, Catatan 4/As restated, Note 4)

Saldo Awal/BeginningBalance

Efek Translasi/Effect of

Translation

Manfaat (Beban)Pajak

Tangguhan/Deferred Tax

Benefits(Expenses)

Dikreditkan pada Penghasilan

Komprehensif Lain/ Credited to Other Comprehensive

Income

Saldo Akhir/EndingBalance

Aset pajak tangguhan -Entitas Induk

Deferred tax assets -The Company

Liabilitas imbalan kerja karyawan 2.155 - (64) 462 2.553

Liabilities for employees’ benefits

Penyisihan penurunan nilai dan persediaan usang 3.923 - (2.621) - 1.302

Allowance for impairment and obsolescence

of inventoriesPenyisihan penurunan

kerugian nilai piutang usaha 251 - - - 251

Allowance for impairment losses of trade

receivablesJumlah aset pajak

tangguhan - Entitas Induk 6.329 - (2.685) 462 4.106

Total deferred tax assets- The Company

Aset pajak tangguhan -Entitas Anak 1.049 - (44) 253 1.258

Deferred tax assets -Subsidiaries

Jumlah aset pajak tangguhan 7.378 - (2.729) 715 5.364 Total deferred tax assets

e. Surat Ketetapan Pajak e. Tax Assessment Letter

Pada tanggal 4 Juli 2014, Entitas Induk menerima beberapa Surat Ketetapan Pajak Kurang Bayar Pajak Pertambahan Nilai (SKPKB PPN), untuk masa Januari sampai dengan Desember 2011 sebesar Rp 2.596. Pada tanggal 2 September 2014, Entitas Induk telah melakukan pembayaran atas tagihan kurang bayar Pajak Pertambahan Nilai ini.

On July 4, 2014, the Company received several Tax Underpayment Assessment Letter of Value Added Tax (SKPKB PPN), for period of January to December 2011 amounting to Rp 2,596. On September 2, 2014, the Company had paid this underpayment of Value Added Tax.

Pada tanggal 11 Juni 2014, Entitas Induk menerima beberapa SKPKB PPN, untuk masa Januari sampai dengan Desember 2012 sebesar Rp 3.472. Pada tanggal 8 Juli 2014, Entitas Induk telah melakukan pembayaran atas tagihan kurang bayar Pajak Pertambahan Nilai ini.

On June 11, 2014, the Company received several SKPKB PPN, for period of January to December 2012 amounting to Rp 3,472. On July 8, 2014, the Company had paid this underpayment of Value Added Tax.

Pada tanggal 23 Juli 2014, Entitas Induk menerima beberapa SKPKB PPN, untuk masa Januari sampai dengan Desember 2013 sebesar Rp 3.377. Pada tanggal 22 Agustus 2014, Entitas Induk telah melakukan pembayaran atas tagihan kurang bayar Pajak Pertambahan Nilai ini.

On July 23, 2014, the Company received several SKPKB PPN, for period of January to December 2013 amounting to Rp 3,377. On August 22, 2014, the Company had paid this underpayment of Value Added Tax.

Pada tanggal 3 September 2014, Entitas Induk mengajukan keberatan dan permohonan pengembalian atas SKPKB PPN tahun 2013 dan 2012 yang dibayarkan Entitas Induk pada tahun 2014, masing-masing sebesar Rp 3.377 dan Rp 3.472. Pada tanggal 19 September 2014, Entitas Induk mengajukan keberatan dan permohonan pengembalian atas SKPKB PPN tahun 2011 yang dibayarkan Entitas Induk pada tahun 2014 sebesar Rp 2.596. Sehingga jumlah permohonan pengembalian pajak sebesar Rp 9.445 dan disajikan dalam akun “Taksiran Tagihan Pajak” dalam laporan posisi keuangan konsolidasian 30 Juni 2015 dan 31 Desember 2014.

On September 3, 2014, the Company filed an objection and claim for tax refund for SKPKB PPN 2013 and 2012 that was paid by the Company during the year of 2014 amounting to Rp 3,377 and Rp 3,472,respectively. On September 19, 2014, the Company filed an objection and claim for tax refund for SKPKB PPN 2011 that was paid by the Company during theyear 2014 amounted to Rp 2,596. Therefore, the total amount of claim for tax refund amounting to Rp 9,445,and presented as “Claim for Tax Refund” in the consolidated statements of financial position as of June 30, 2015 and December 31, 2014

— F-108 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

95

18. BEBAN MASIH HARUS DIBAYAR 18. ACCRUED EXPENSES

Beban masih harus dibayar terdiri atas: Accrued expenses consist of:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Promosi 47.235 32.860 19.360 2.291 5.796 PromotionTunjangan karyawan 19.615 4.636 463 - - Employees’ welfareJasa profesional 7.490 2.257 1.038 17 15 Professional feesBunga 3.093 2.435 2.347 1.496 1.539 Interest

Lisensi 2.702 3.508 1.940 - - LicenseEkspedisi 2.323 215 2.637 1.902 2.638 ExpeditionUtilitas 1.796 2.175 1.358 1.053 955 Utilities

Jamsostek - 1.097 117 - - Jamsostek Lain-lain 1.468 865 185 187 131 Others

Jumlah 85.722 50.048 29.445 6.946 11.074 Total

19. UTANG BANK JANGKA PANJANG 19. LONG-TERM BANK LOANS

Utang bank jangka panjang terdiri atas: Long term - bank loans consist of :

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Entitas Induk The Company PT Bank Central PT Bank Central Asia Tbk Asia Tbk Fasilitas Kredit Investment Credit Investasi IV - - - - 573 Facility IV Fasilitas Kredit Investment Credit Investasi V - - 4.794 10.023 15.254 Facility V Fasilitas Kredit Investment Credit Investasi VI 12.546 15.558 21.579 27.602 - Facility VI Fasilitas Kredit Investment Credit Investasi VII 20.547 23.481 5.411 - - Facility VII Fasilitas Kredit Investment Credit Investasi VIII 17.994 20.565 3.466 - - Facility VIII PT Bank CIMB PT Bank CIMB Niaga Tbk Niaga Tbk Fasilitas Kredit Investment Credit Investasi IV 12.507 18.280 29.826 41.371 35.000 Facility IV Fasilitas Kredit Investment Credit Investasi V 72.458 - - - - Facility V PT Bank CIMB PT Bank CIMB Niaga Tbk Unit Niaga Tbk Unit Usaha Syariah Usaha Syariah

Fasilitas Kredit Special Transaction Transaksi of Credit Khusus 5 - - - 1.270 3.766 Facility 5

Fasilitas Kredit Special Transaction Transaksi of Credit Khusus 6 - - 1.000 5.000 9.000 Facility 6 Fasilitas Kredit Special Transaction Transaksi of Credit Khusus 7 - - 4.787 10.009 15.231 Facility 7

— F-109 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

96

19. UTANG BANK JANGKA PANJANG (lanjutan) 19. LONG-TERM BANK LOANS (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Entitas Induk (lanjutan) The Company (continued) PT Bank CIMB PT Bank CIMB Niaga Tbk Unit Niaga Tbk Unit (lanjutan) (continued) Fasilitas Kredit Special Transaction Transaksi of Credit Khusus 8 - - 1.390 6.950 12.510 Facility 8 PT Bank Index PT Bank Index Selindo Selindo Fasilitas Term Loan Term Loan 14.087 15.000 - - - Facility Fasilitas Kredit Investment Credit Investasi I - - - 800 1.661 Facility I Fasilitas Kredit Investment Credit Investasi IX - - - 2.984 5.630 Facility IXEntitas Anak Subsidiary PT Dutalestari PT Dutalestari Sentratama Sentratama PT Bank Danamon PT Bank Danamon Indonesia Indonesia Tbk Tbk Fasilitas Kredit Revolving Angsuran Loan Credit Berjangka - - 698 1.795 2.779 Facility Jumlah 150.139 92.884 72.951 107.804 101.404 Total

Dikurangi bagian yang jatuh tempo Current portion dalam waktu of long-term satu tahun bank loansEntitas Induk The Company PT Bank Central PT Bank Central Asia Tbk Asia Tbk Fasilitas Kredit Investment Credit Investasi IV - - - - 573 Facility IV Fasilitas Kredit Investment Credit Investasi V - - 4.794 5.230 5.230 Facility V Fasilitas Kredit Investment Credit Investasi VI 6.022 6.022 6.023 6.022 - Facility VI Fasilitas Kredit Investment Credit Investasi VII 5.871 5.870 385 - - Facility VII Fasilitas Kredit Investment Credit Investasi VIII 5.141 5.141 601 - - Facility VIII PT Bank CIMB PT Bank CIMB Niaga Tbk Niaga Tbk Fasilitas Kredit Investment Credit Investasi IV 11.545 11.545 11.545 11.545 2.587 Facility IV Fasilitas Kredit Investment Credit Investasi V 15.254 - - - - Facility V PT Bank CIMB PT Bank CIMB Niaga Tbk Unit Niaga Tbk Unit Usaha Syariah Usaha Syariah

Special Fasilitas Kredit Transaction Transaksi of Credit Khusus 5 - - - 1.270 2.496 Facility 5

— F-110 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

97

19. UTANG BANK JANGKA PANJANG (lanjutan) 19. LONG-TERM BANK LOANS (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Entitas Induk (lanjutan) The Company (continued) PT Bank CIMB PT Bank CIMB Niaga Tbk Unit Niaga Tbk Unit Usaha Syariah Usaha Syariah

(lanjutan) Special (continued)Special

Fasilitas Kredit Transaction Transaksi of Credit Khusus 6 - - 1.000 4.000 4.000 Facility 6 Special Fasilitas Kredit Transaction Transaksi of Credit Khusus 7 - - 4.787 5.222 5.222 Facility 7 Special Fasilitas Kredit Transaction Transaksi of Credit Khusus 8 - - 1.390 5.560 5.560 Facility 8 PT Bank Index PT Bank Index Selindo Selindo Fasilitas Term Loan Term Loan 2.405 2.078 - - - Facility Fasilitas Kredit Investment Credit Investasi IX - - - 2.984 2.647 Facility IX Fasilitas Kredit Investment Credit Investasi I - - - 800 861 Facility IEntitas Anak Subsidiary PT Dutalestari PT Dutalestari Sentratama Sentratama PT Bank Danamon PT Bank Danamon Indonesia Indonesia Tbk Tbk Fasilitas Kredit Revolving Angsuran Loan Credit Berjangka - - 698 1.097 984 Facility Jumlah bagian yang jatuh tempo Current portion dalam waktu of long-term satu tahun 46.238 30.656 31.223 43.730 30.160 bank loans Bagian utang jangka panjang 103.901 62.228 41.728 64.074 71.244 Long-term portion

Entitas Induk The Company

Pinjaman bank yang diperoleh Entitas Induk terdiri atas: Bank loans obtained by the Company are as follows:

— F-111 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

98

19. UTANG BANK JANGKA PANJANG (lanjutan) 19. LONG-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank Central Asia Tbk (BCA) PT Bank Central Asia Tbk (BCA)

Fasilitas-fasilitas kredit yang diperoleh dari BCA terdiri atas:

Credit facilities obtained from BCA are as follows:

a. Fasilitas Kredit Investasi IV, diperoleh pada tanggal 17 Januari 2008, berdasarkan Akta Notaris DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 59, dengan batas maksimum pinjaman sebesar Rp 13.760. Fasilitas kredit ini dikenakan bunga berkisar 10,00% - 10,50% dan sebesar 10,50% per tahun masing-masing pada tahun 2012 dan 2011 dan digunakan sebagai modal kerja. Pinjaman ini dibayarkan setiap bulan sebesar Rp 287, dimulai pada tanggal 15 Maret 2008 sampai dengan tanggal 15 Februari 2012. Pinjaman ini telah dilunasi oleh Entitas Induk sesuai dengan tanggal jatuh temponya.

a. Investment Credit Facility IV, was obtained on January 17, 2008, based on Notarial Deed of DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 59, with maximum credit limit amounting to Rp 13,760. This facility bears annual interest rate ranging from 10.00% - 10.50% and10.50% in 2012 and 2011, respectively, and was being used to working capital. This loan is paid in monthly installments amounting to Rp 287, starting from March 15, 2008 until February 15, 2012. This loan has been fully paid by the Company in accordance with its due date.

b. Fasilitas Kredit Investasi V, diperoleh pada tanggal 26 Oktober 2009, berdasarkan Akta Notaris DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 109, dengan batas maksimum pinjaman sebesar Rp 30.000. Fasilitas kredit ini dikenai bunga berkisar 11,00% - 11,25%, 10,00% - 11,00%, 10,00% - 11,50% dan 10,50% per tahun masing-masing pada tahun2014, 2013, 2012 dan 2011, digunakan untuk pembiayaan kembali bangunan di pabrik Cikembar. Pinjaman ini dibayarkan setiap bulan sebesar Rp 436, dimulai pada tanggal 10 Desember 2009 sampai dengan tanggal 10 November 2014. Pinjaman ini telah dilunasi oleh Entitas Induk sesuai dengan tanggal jatuh temponya.

b. Investment Credit Facility V, was obtained on October 26, 2009, based on Notarial Deed of DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 109, with maximum credit limit amounting to Rp 30,000. This facility bears annual interest rate ranging from 11.00% - 11.25%, 10.00% - 11.00%, 10.00% - 11.50% and 10.50% in 2014, 2013, 2012, 2011, respectively, and was being used to refinance the factory building at Cikembar. This loan is paid in monthly installmentsamounting to Rp 436, starting from December 10, 2009 until November 10, 2014. This loan has been fully paid by the Company in accordance with its due date.

c. Fasilitas Kredit Investasi VI, diperoleh pada tanggal 28 Juni 2012, berdasarkan Akta Notaris DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 241, dengan batas maksimum pinjaman sebesar Rp 30.000. Fasilitas kredit ini dikenai bunga berkisar11,00% - 11,25%, 11,00% - 11,25%, 10,00% - 11,00%,dan 10,00% - 10,50% per tahun masing-masing pada tahun 2015, 2014, 2013 dan 2012, digunakan untuk pembiayaan kembali mesin di pabrik Cikembar. Pinjaman ini dibayarkan setiap bulan sebesar Rp 502, dimulai pada tanggal 6 Agustus 2012 sampai dengan tanggal 6 Juli 2017.

c. Investment Credit Facility VI, was obtained on June 28, 2012, based on Notarial Deed of DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., No. 241, with maximum credit limit amounting to Rp 30,000. This facility bears annual interest rate ranging from 11.00% - 11.25%, 11.00% - 11.25%, 10.00% - 11.00% and 10.00% - 10.50% in 2015, 2014, 2013 and 2012,respectively, and is used to refinance machines in Cikembar factory. This loan is paid in monthly installments amounting to Rp 502, starting from August 6, 2012 until July 6, 2017.

d. Fasilitas Kredit Investasi VII, diperoleh pada tanggal 29 Oktober 2013, berdasarkan Akta Notaris Sri Buena Brahmana, S.H., M.kn No. 59, dengan batas maksimum pinjaman sebesar Rp 21.500. Fasilitas kredit ini telah mengalami beberapa perubahanterakhir, berdasarkan Perubahan Perjanjian Kredit No. 137 tanggal 27 Oktober 2014, BCA menambahkan batas maksimum pinjaman menjadi sebesar Rp 25.900. Fasilitas kredit ini dikenai bunga berkisar 11,00% - 11,25%, 11,00% - 11,25% dan 10,75% -11,00% per tahun masing-masing pada tahun 2015, 2014 dan 2013 dan digunakan untuk pembangunan pabrik minuman energi di Cidahu. Pinjaman ini dibayarkan setiap bulan sebesar Rp 489, dimulai pada tanggal 13 Agustus 2014 sampai dengan tanggal 13 Desember 2018.

d. Investment Credit Facility VII, was obtained on October 29, 2013, based on Notarial Deed of Sri Buena Brahmana S.H., M.kn. No. 59, with maximum credit limit amounting to Rp 21,500. This agreement has been amended several times, most recently by Amendment of Credit Facility No. 137 dated on October 27, 2014, BCA which increased the maximum borrowing limit to Rp 25,900. This facility bears annual interest rate ranging from 11.00% - 11.25%, 11.00% -11.25% and 10.75% - 11.00% in 2015, 2014 and 2013, respectively, and is used to construct energy drinks factory in Cidahu. This loan is paid in monthly installments amounting to Rp 489, starting from August 13, 2014 until December 13, 2018.

— F-112 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

99

19. UTANG BANK JANGKA PANJANG (lanjutan) 19. LONG-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank Central Asia Tbk (BCA) (lanjutan) PT Bank Central Asia Tbk (BCA) (continued)

e. Fasilitas Kredit Investasi VIII, diperoleh pada tanggal 29 Oktober 2013, berdasarkan Akta Notaris Sri Buena Brahmana, S.H., M.kn No. 59, dengan batas maksimum pinjaman sebesar Rp 26.500. Fasilitas kredit ini telah mengalami beberapa perubahanterakhir, berdasarkan surat Perubahan Perjanjian Kredit No. 137 tanggal 27 Oktober 2014, BCAmenurunkan batas maksimum pinjaman menjadi sebesar Rp 22.100. Fasilitas kredit ini dikenai bunga berkisar 11,00% - 11,25%, 11,00% - 11,25% dan 10,75% - 11,00% per tahun masing-masing pada tahun 2015, 2014 dan 2013 dan digunakan sebagaimodal kerja untuk pembelian mesin pabrik minuman energi di Cidahu. Pinjaman ini dibayarkan setiap bulan sebesar Rp 283, dimulai pada tanggal 13 Agustus 2014 sampai dengan tanggal 13 Desember 2018.

e. Investment Credit Facility VIII, was obtained on October 29, 2013, based on Notarial Deed of Sri Buena Brahmana S.H., M.kn. No. 59, with maximum credit limit amounting to Rp 26,500. This agreement has amended several times, most recently by Amendment of Credit Facility No. 137 dated on October 27, 2014, BCA reduced the maximum borrowing limit to Rp 22,100. This facility bears annual interest rate ranging from 11.00% - 11.25%, 11.00% -11.25% and 10.75% - 11.00% in 2015, 2014 and 2013, respectively, and is used as working capital for the purchase of energy drink machineries in Cidahu. This loan is paid in monthly installments amounting to Rp 283, starting from August 13, 2014 until December 13, 2018.

Fasilitas-fasilitas pinjaman ini dijamin secara gabungan dengan jaminan fasilitas kredit jangka pendek yang diperoleh dari BCA (Catatan 15).

The loan facilities are cross collateralized with collaterals for short-term bank loans obtained from BCA (Note 15).

Selama pinjaman terhadap BCA belum dilunasi, tanpa persetujuan tertulis BCA, Entitas Induk dilarang melakukan aktivitas seperti yang disyaratkan dalam fasilitas kredit jangka pendek dari BCA (Catatan 15).

During the term of the loan with BCA, without the prior written consent from BCA, the Company is prohibited from conducting activities as required in the short-term credit facilities from BCA (Note 15).

Beban bunga dari utang bank jangka panjang dari BCA untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 2012,disajikan sebagai “Beban Bunga” dalam laporan laba rugidan penghasilan komprehensif lain konsolidasian (Catatan 30).

Interest expenses of long-term bank loans from BCA for the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012 are presented as “Interest Expenses” in the consolidated statements of profit or loss and other comprehensive income (Note 30).

PT Bank CIMB Niaga Tbk (CIMB) PT Bank CIMB Niaga Tbk (CIMB)

Pada tanggal 27 Juli 2011, berdasarkan Surat Perjanjian Kredit No. 201/CB/JKT/2011, Entitas Induk memperoleh Fasilitas Kredit Investasi IV (KI-IV) dengan batas maksimum sebesar Rp 45.000. Pada tanggal 21 Mei 2012, berdasarkan Surat Perubahan Perjanjian Kredit No. 206/AMD/CB/JKT/2012, batas maksimum pinjaman KI-IV dipecah menjadi dua menjadi Fasilitas KI-IV A sebesar Rp 35.000 dan KI-IV B sebesar Rp 10.000. Fasilitas kredit ini dikenai bunga berkisar 11,50% - 12,00%, 11,50% - 12,00%, 10,00% - 10,25%, 10,25% - 11,00% dan10,25% - 11,00% per tahun masing-masing pada tahun 2015, 2014, 2013, 2012 dan 2011 dan digunakan untuk pembiayaan mesin-mesin pabrik di Cikande. Pinjaman KI-IV A dan KI-IV B masing-masing dibayarkan setiap bulan sebesar Rp 754 dan Rp 208, dimulai pada tanggal 27 Agustus 2012 sampai dengan tanggal 27 Juli 2016.

On July 27, 2011, based on Credit Agreement No. 201/CB/JKT/2011, the Company obtained Investment Credit Facility IV (KI-IV) with maximum credit limit amounting to Rp 45,000. On May 21, 2012, based on Amendment Letter of Credit Agreement No. 206/AMD/CB/JKT/2012, the maximum limit is split into facilities KI-IV A amounting to Rp 35,000 and KI-IV B amounting to Rp 10,000. These credit facilities bear annual interest rate ranging from 11.50% - 12.00%, 11.50% -12.00%, 10.00% - 10.25%, 10.25% - 11.00% dan 10.25% -11.00% in 2015, 2014, 2013, 2012 and 2011, respectively,and used for financing factory machines and building at Cikande. Loan KI-IV A and KI-IV B is paid in monthly installments amounting to Rp 754 and Rp 208,respectively, starting from August 27, 2012 until July 27, 2016.

— F-113 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

100

19. UTANG BANK JANGKA PANJANG (lanjutan) 19. LONG-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank CIMB Niaga Tbk (CIMB) (lanjutan) PT Bank CIMB Niaga Tbk (CIMB) (continued)

Pada tanggal 6 Maret 2015, berdasarkan Perubahan ke-16Terhadap Perjanjian Kredit No. 165/CBG/JKT/2004, Entitas Induk memperoleh Fasilitas Kredit Investasi V (KI-V) dengan batas maksimum sebesar Rp 75.000. Fasilitas kredit ini dikenai bunga sebesar 12,00% per tahun dan digunakan untuk refinancing atas capital expenditureyang dikeluarkan di tahun 2013 dan 2014. Pinjaman KI-Vdibayarkan setiap bulan sebesar Rp 1.271, dimulai pada tanggal 27 April 2015 sampai dengan tanggal 6 Maret 2020.

On March 6, 2015, based on 16th Amendment Letter of Credit Agreement No. 165/CBG/JKT/2004, the Company obtained Investment Credit Facility V (KI-V) with maximum credit limit amounting to Rp 75,000. This credit facility bears annual interest rate of 12.00%, and used for refinancing of capital expenditure in 2013 and 2014. Loan KI-V is paid in monthly installments amounting to Rp 1,271, starting from April 27, 2015 until March 6, 2020.

Fasilitas-fasilitas pinjaman ini dijamin secara gabungan dengan jaminan fasilitas kredit jangka pendek yang diperoleh dari CIMB (Catatan 15).

The loan facilities are cross collateralized with collaterals for short-term bank loans obtained from CIMB (Note 15).

Selama pinjaman terhadap CIMB belum dilunasi, tanpa persetujuan tertulis CIMB, Entitas Induk dilarang melakukan aktivitas seperti yang disyaratkan dalam fasilitas kredit jangka pendek dari CIMB (Catatan 15).

During the term of the loan with CIMB, without the prior written consent from CIMB, the Company is prohibited from conducting activities as required in the short-term credit facilities from CIMB (Note 15).

Beban bunga dari utang bank jangka panjang dari CIMBuntuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 2012,disajikan sebagai “Beban Bunga” dalam laporan laba rugidan penghasilan komprehensif lain konsolidasian (Catatan 30).

Interest expenses of long-term bank loans from CIMB for the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012 are presented as “Interest Expenses” in the consolidated statements of profit or loss and other comprehensive income (Note 30).

PT Bank CIMB Niaga Tbk Unit Usaha Syariah (CIMBSyariah)

PT Bank CIMB Niaga Tbk Unit Usaha Syariah (CIMBSyariah)

Fasilitas-fasilitas kredit yang diperoleh Entitas Induk dari CIMB Syariah terdiri atas:

Credit facilities obtained by the Company from CIMB Syariah are as follows :

a. Fasilitas Kredit Pembiayaan Transaksi Khusus 5 -Murabahah, diperoleh pada tanggal 27 Juli 2011, berdasarkan Perjanjian Pembiayaan Murabahah No. 204/PP-Mur/CB/JKT/2011, dengan jumlah batas maksimum sebesar Rp 4.806 atau sebesar pengalihan pokok utang Kredit Investasi I di CIMB. Fasilitas kredit ini dikenai bunga sebesar 10,25% per tahun dan digunakan sebagai modal kerja untuk pembelian bahan baku. Pinjaman ini dibayarkan setiap bulan sebesar Rp 208, dimulai pada tanggal 2 Agustus 2011 sampai dengan tanggal 2 Juni 2013.

a. Special Transaction Credit Facility Financing 5 -Murabahah, obtained on July 27, 2011, based on the Murabahah Financing Agreement No. 204/PP-Mur/CB/JKT/2011, with maximum credit limit amounting to Rp 4,806, or by transfer the principal debt at CIMB Investment Credit I. This credit facility bears annual interest rate of 10.25%, per year and was used for working capital to purchase raw materials. This loan is paid in monthly installment amounting to Rp 208, starting from August 2, 2011 until June 2, 2013.

b. Fasilitas Kredit Pembiayaan Transaksi Khusus 6 -Murabahah, diperoleh pada tanggal 27 Juli 2011, berdasarkan Perjanjian Pembiayaan Murabahah No. 205/PP-Mur/CB/JKT/2011, dengan jumlah batas maksimum sebesar Rp 10.000 atau sebesar pengalihan pokok utang Kredit Investasi II di CIMB. Fasilitas kredit ini dikenai bunga sebesar 10,25% per tahun dan digunakan untuk pembelian mesin di pabrik Cikembar. Pinjaman ini dibayarkan setiap 3 bulan sebesar Rp 1.000, dimulai pada tanggal 15 Agustus 2011 sampai dengan tanggal 15 Januari 2014.

b. Special Transactions Credit Facilities Financing 6 -Murabahah, obtained on July 27, 2011, based on theMurabahah Financing Agreement No. 205/PP-Mur/CB/JKT/2011, with maximum credit limit amounting to Rp 10,000 or by transfer of the principal debt at CIMB Investment Credit II. This credit facility bears annual interest rate of 10.25%, per year and was used for the purchase of machinery in the Cikembar factory. This loan is paid in quarterly installmentsamounting to Rp 1,000 starting from August 15, 2011 until January 15, 2014.

— F-114 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

101

19. UTANG BANK JANGKA PANJANG (lanjutan) 19. LONG-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank CIMB Niaga Tbk Unit Usaha Syariah (CIMBSyariah) (lanjutan)

PT Bank CIMB Niaga Tbk Unit Usaha Syariah (CIMBSyariah) (continued)

c. Fasilitas Kredit Pembiayaan Transaksi Khusus 7 -Murabahah, diperoleh pada tanggal 27 Juli 2011, berdasarkan Perjanjian Pembiayaan Murabahah No. 206/PP-Mur/CB/JKT/2011, dengan jumlah batas maksimum sebesar Rp 17.407 atau sebesar pengalihan pokok utang Kredit Investasi III di CIMB. Fasilitas kredit ini dikenai bunga sebesar 10,25% per tahun dan digunakan untuk pembelian mesin di pabrik Cikande. Pinjaman ini dibayarkan setiap bulan sebesar Rp 435, dimulai pada tanggal 15 Agustus 2011 sampai dengan tanggal 15 November 2014.

c. Special Transactions Credit Facility Financing 7 -Murabahah, obtained on July 27, 2011, based on the Murabahah Financing Agreement No. 206/PP-Mur/CB/JKT/2011, with maximum credit limit amounting to Rp 17,407 or by transfer of the principal debt at CIMB Investment Credit III. This credit facility bears annual interest rate of 10.25%, per year and wasused for the purchase of machinery in the Cikandefactory. This loan is paid in monthly installmentsamounting to Rp 435, starting from August 15, 2011 until November 15, 2014.

d. Fasilitas Kredit Pembiayaan Transaksi Khusus 8 -Murabahah, diperoleh pada tanggal 27 Juli 2011, berdasarkan Perjanjian Pembiayaan Murabahah No. 211/PP-Mur/CB/JKT/2011, dengan jumlah batas maksimum sebesar Rp 14.040 atau sebesar pengalihan pokok utang Kredit Transaksi Khusus I dan II di CIMB. Fasilitas kredit ini dikenai bunga sebesar 10,25% per tahun dan digunakan untuk pembelian mesin di pabrik Cikande. Pinjaman ini dibayarkan setiap 3 bulan sebesar Rp 1.390, dimulai pada tanggal 15 Agustus 2011 sampai dengan tanggal 15 Januari 2014.

d. Special Transactions Credit Facilities Financing 8 -Murabahah, obtained on July 27, 2011, based on the Murabahah Financing Agreement No. 211/PP-Mur/CB/JKT/2011, with maximum credit limit amounting to Rp 14,040, or by transfer of the principal debt at Credit Special Transactions I and II at CIMB. This credit facility bears annual interest rate of 10.25%, per year and was used for the purchase of machinery in Cikande factory. This loan is paid in quarterly installments amounting to Rp 1,390, starting from August 15, 2011 until January 15, 2014.

Pinjaman dari CIMB Syariah ini telah dilunasi Entitas Induk sesuai dengan waktu jatuh temponya.

Loan from CIMB Syariah have been fully paid by the Company in accordance with its due date.

Fasilitas-fasilitas pinjaman ini dijamin secara gabungan dengan jaminan fasilitas kredit jangka pendek yang diperoleh dari CIMB Syariah (Catatan 15).

These loan facilities are cross collateralized with collaterals for short-term bank loans obtained from CIMB Syariah(Note 15).

Selama pinjaman terhadap CIMB Syariah belum dilunasi, tanpa persetujuan tertulis CIMB Syariah, Entitas Induk dilarang melakukan aktivitas seperti yang disyaratkan dalam fasilitas kredit jangka pendek dari CIMB Syariah (Catatan 15).

During the term of the loan with CIMB Syariah, without the prior written consent from CIMB Syariah, the Company is prohibited from conducting activities as required in the short-term credit facilities from CIMB Syariah (Note 15).

Beban bunga dari utang bank jangka panjang dari CIMB Syariah untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013dan 2012, disajikan sebagai “Beban Bunga” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian (Catatan 30).

Interest expenses of long-term bank loans from CIMB Syariah for the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012 are presented as “Interest Expenses” in the consolidated statements of profit or loss and other comprehensive income (Note 30).

PT Bank Index Selindo (Index) PT Bank Index Selindo (Index)

Fasilitas-fasilitas kredit yang diperoleh Entitas Induk dari Index terdiri atas:

Credit facilities obtained by the Company from Index are as follows :

— F-115 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

102

19. UTANG BANK JANGKA PANJANG (lanjutan) 19. LONG-TERM BANK LOANS (continued)

Entitas Induk (lanjutan) The Company (continued)

PT Bank Index Selindo (Index) (lanjutan) PT Bank Index Selindo (Index) (continued)

a. Fasilitas Term Loan, diperoleh pada tanggal 1 Juli 2014, berdasarkan Akta Notaris No. 1 yang dibuat di hadapan Hannywati Gunawan S.H., dengan batas maksimum pinjaman sebesar Rp 15.000. Fasilitas kredit ini dikenai bunga 13,00% pada tahun 2014 dandigunakan untuk penambahan modal. Pinjaman ini dibayarkan setiap bulan sebesar Rp 341, dimulai pada tanggal 1 Februari 2015 sampai dengan tanggal 2 Januari 2020.

a. Term Loan Facility, obtained on July 1, 2014, based on the Deed No. 1, of Hannywati Gunawan SH, with maximum credit limit amounting to Rp 15,000. This credit facility bears annual interest of 13.00% in 2014and is used as additional working capital. This loan ispaid in monthly installments amounting to Rp 341starting from February 1, 2015 until January 2, 2020.

b. Fasilitas Kredit Investasi IX, diperoleh pada tanggal 27 Juni 2011, berdasarkan Akta Notaris No. 86 yang dibuat di hadapan Hannywati Gunawan S.H., dengan batas maksimum pinjaman sebesar Rp 10.000. Fasilitas kredit ini dikenai bunga berkisar 11,50% - 12,00% dan 12,00% - 12,50% per tahun masing-masing pada tahun 2013 dan 2012 dan digunakan sebagai tambahan modal kerja. Fasilitas kredit ini telah dilunasi pada tanggal 2 Desember 2013.

b. Investment Credit Facility IX, obtained on June 27, 2011, based on the Deed No. 86, of Hannywati Gunawan SH, with maximum credit limit amounting to Rp 10,000. This credit facility bears annual interest ranging from 11.50% - 12.00% and 12.00% - 12.50% in 2013 and 2012, respectively and was used as additional working capital. This loan was fully paid on December 2, 2013.

Fasilitas-fasilitas pinjaman ini dijamin secara gabungandengan jaminan fasilitas kredit jangka pendek yang diperoleh dari Index (Catatan 15).

The loan facilities are cross collateralized with collaterals for short-term bank loans obtained from Index (Note 15).

Selama pinjaman terhadap Index belum dilunasi, tanpa persetujuan tertulis Index, DLS, Entitas Anak, dilarang melakukan aktivitas seperti yang disyaratkan dalam fasilitas kredit jangka pendek dari Index (Catatan 15).

During the term of the loan with Index, without the prior written consent from Index, DLS, a Subsidiary, is prohibited from conducting activities as required in the short-term credit facilities from Index (Note 15).

Beban bunga dari utang bank jangka panjang dari Index untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 1 Januari 2013/31 Desember 2012, disajikan sebagai “Beban Bunga” dalam laporan laba rugi dan penghasilankomprehensif lain konsolidasian (Catatan 30).

Interest expenses of long-term bank loans from Index for the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 andJanuary 1, 2013/December 31, 2012 are presented as “Interest Expenses” in the consolidated statements of profit or loss and other comprehensive income (Note 30).

PT Dutalestari Sentratama (DLS) PT Dutalestari Sentratama (DLS)

PT Bank Danamon Indonesia Tbk (Danamon) PT Bank Danamon Indonesia Tbk (Danamon)

Fasilitas-fasilitas kredit yang diperoleh DLS dari Danamon terdiri atas:

Credit facilities obtained by DLS from Danamon are as follows:

Berdasarkan Akta Notaris Dr. Ir. Yohanes Wilion, S.E., S.H., M.M., No. 55 tanggal 22 Juli 2010, DLS memperoleh fasilitas Kredit Angsuran Berjangka dari Danamon. Perjanjian ini telah mengalami beberapa kali perubahan, terakhir dengan Perjanjian Perpanjangan terhadap Perjanjian Kredit No. PPWK/168/0714 tanggal 20 Agustus 2014. Batas maksimum fasilitas ini sebesarRp 4.000 dan digunakan untuk tujuan investasi. Fasilitas kredit ini dikenai bunga sebesar 11% per tahun masing-masing pada tahun 2014, 2013, 2012, dan 2011. Fasilitas ini dilunasi dalam empat puluh delapan (48) kali cicilan bulanan sebesar Rp 103 perbulan, dimulai pada tanggal 22 Agustus 2010 sampai dengan tanggal 22 Juli 2014.Pinjaman ini telah dilunasi oleh DLS sesuai dengan tanggal jatuh temponya.

Based on Notarial Deeds Dr. Ir. Yohanes Wilion, S.E., S.H., M.M. No. 55 dated July 22, 2010, DLS obtained Revolving Loan Credit Facility from Danamon. This agreement had been amended several times, most recently by Extension Agreement to Credit Agreement No. PPWK/168/0714 dated August 20, 2014. Maximum credit of this facility is amounted to Rp 4,000 and was used for investment. This credit facility bears interest rate at 11% in 2014, 2013, 2012, and 2011. This facility is paid in forty eight (48) monthly installments amounted to Rp 103 per month starting from August 22, 2010 until July 22, 2014. This loan has been fully paid by DLS in accordance with its due date.

— F-116 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

103

19. UTANG BANK JANGKA PANJANG (lanjutan) 19. LONG-TERM BANK LOANS (continued)

PT Dutalestari Sentratama (DLS) (lanjutan) PT Dutalestari Sentratama (DLS) (continued)

PT Bank Danamon Indonesia Tbk (Danamon) (lanjutan) PT Bank Danamon Indonesia Tbk (Danamon) (continued)

Untuk fasilitas utang bank jangka panjang, DLSmemberikan jaminan secara gabungan dengan utang bank jangka pendek (Catatan 15).

For the long-term bank loan, DLS provided a combined collateral jointly with short-term bank loan (Note 15).

Selama pinjaman terhadap Danamon belum dilunasi, tanpa persetujuan tertulis Danamon, DLS, Entitas Anak, dilarang melakukan aktivitas seperti yang disyaratkan dalam fasilitas kredit jangka pendek dari Danamon (Catatan 15).

During the term of the loan with Index, without the prior written consent from Danamon, DLS, a Subsidiary, is prohibited from conducting activities as required in the short-term credit facilities from Danamon (Note 15).

Beban bunga dari utang bank jangka panjang dari Danamon untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013dan 2012, disajikan sebagai “Beban Bunga” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian (Catatan 30).

Interest expenses of long-term bank loan from Danamonfor the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012 are presented as “Interest Expenses” in the consolidated statements of profit or loss and other comprehensive income (Note 30).

Fasilitas ini sudah dilunasi DLS pada tanggal 23 Juli 2014. This facility have been fully paid by DLS as of July 23, 2014.

20. UTANG PEMBIAYAAN KONSUMEN 20. CONSUMER FINANCING PAYABLES

Utang pembiayaan konsumen merupakan utang kepada PT Bank Central Asia Tbk, PT Bank Index Selindo, TC Capital Resources Sdn., Bhd., Malaysia dan Public Bank Bhd., Malaysia atas pembelian kendaraan dengan rincian sebagai berikut:

Consumer financing payables represents payables to PT Bank Central Asia Tbk, PT Bank Index Selindo, TC Capital Resources Sdn., Bhd., Malaysia and Public Bank Bhd., Malaysia, for the purchase of vehicles with details as follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Jatuh tempo Due in

2012 - - - - 6.560 2012 2013 - - - 7.814 3.558 2013 2014 - - 6.309 4.440 1.053 2014 2015 703 2.498 1.876 834 - 2015 2016 951 741 300 - - 2016 2017 380 363 84 - - 2017 2018 302 305 14 - - 2018 2019 302 305 - - - 2019 2020 193 194 - - - 2020 2021 16 16 - - - 2021

Jumlah 2.847 4.422 8.583 13.088 11.171 Total

Dikurangi : bunga (239) (336) (663) (1.325) (1.274) Less : interest

Utang pembiayaan Consumer financing konsumen 2.608 4.086 7.920 11.763 9.897 payables

Dikurangi bagian yang

jatuh tempo dalam waktu satu tahun 1.229 2.343 5.837 6.847 5.652 Less current portion

Bagian jangka panjang 1.379 1.743 2.083 4.916 4.245 Long-term portion

— F-117 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

104

20. UTANG PEMBIAYAAN KONSUMEN (lanjutan) 20. CONSUMER FINANCING PAYABLES (continued)

Utang pembiayaan konsumen ini dikenai bunga berkisar 3,75% - 11,44% 3,40% - 10,15%, 6,50% - 8,61%, 6,50%-10,70% dan 6,50% - 10,70% per tahun masing-masing pada tahun 2015, 2014, 2013, 2012 dan 2011.

This facility bears annual interest rate ranging from 3.75% -11.44% 3.40% - 10.15%, 6.50% - 8.61%, 6.50% - 10.70% dan 6.50% - 10.70% in 2015, 2014, 2013, 2012 and 2011, respectively.

Kendaraan milik Grup dijadikan sebagai jaminan atas utang pembiayaan konsumen yang diperoleh oleh Grup.

Vehicles owned by the Group are used as collateral for consumer financing payables acquired by the Group.

Beban bunga dari utang pembiayaan konsumen untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 2012, disajikan sebagai “Beban Bunga” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian (Catatan 30).

Interest expenses on consumer financing payables for the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012, are presented as "Interest Expenses" in the consolidated statements of profit or loss and other comprehensive income (Note 30).

21. UTANG SEWA PEMBIAYAAN 21. FINANCE LEASE PAYABLES

Utang sewa merupakan utang kepada PT Dipo Star Finance, PT Orix Indonesia Finance, PT BCA Finance dan BPI Leasing Corp., Filipina atas pembelian kendaraan dengan rincian sebagai berikut:

Finance lease payables represent payables to PT Dipo Star Finance, PT Orix Indonesia Finance, PT BCA Finance and BPI Leasing Corp., Philippines for the purchase of vehicles with details as follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Jatuh tempo Due in

2014 - - 7.297 - - 2014 2015 4.609 9.682 6.949 - - 2015 2016 6.111 6.130 3.616 - - 2016 2017 510 508 - - - 2017 2018 168 104 - - - 2018 2019 123 - - - - 2019 2020 12 - - - - 2020

Jumlah 11.533 16.424 17.862 - - Total Dikurangi : bunga (668) (1.252) (1.738) - - Less : interest Utang sewa pembiayaan 10.865 15.172 16.124 - - Finance lease payables Dikurangi bagian yang

jatuh tempo dalam waktu satu tahun 8.355 8.704 6.229 - - Less current portion

Bagian jangka panjang 2.510 6.468 9.895 - - Long-term portion

Aset sewa pembiayaan - kendaraan milik Grup dijadikan sebagai jaminan atas utang sewa pembiayaan yang diperoleh oleh Grup.

Finance lease assets - vehicles owned by the Group areused as collateral for finance lease payables acquired by the Group.

Entitas Induk The CompanySelama utang Entitas Induk terhadap PT Orix Indonesia Finance belum dilunasi, tanpa persetujuan tertulis dari PT Orix Indonesia Finance, Entitas Induk dilarang melakukan aktivitas antara lain sebagai berikut:

For the period the Company remains indebted to PT Orix Indonesia Finance, without the prior written consent from PT Orix Indonesia Finance, the Company is prohibited from conducting the following activities:

a. Melakukan suatu perubahan atas kendaraan yang membuat kendaraan menjadi berbeda dari bentuk, identitas, fungsi dan/atau kondisi semula dari kendaraan ketika diserahkan.

a. Make a change on the vehicle that makes the vehicle being different from the form, identity, function and/or the original condition of the vehicle when submitted.

b. Memindahkan hak dan kewajiban kepada pihak lain. b. Transfer the rights and obligations to another party.

— F-118 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

105

21. UTANG SEWA PEMBIAYAAN (lanjutan) 21. FINANCE LEASE PAYABLES (continued)

PT Dutalestari Sentratama (DLS) PT Dutalestari Sentratama (DLS)

Selama utang DLS terhadap PT Dipo Star Finance belum dilunasi, tanpa persetujuan tertulis dari PT Dipo Star Finance, DLS dilarang melakukan aktivitas antara lain sebagai berikut:

For the period DLS remains indebted to PT Dipo Star Finance, without the prior written consent from PT Dipo Star Finance, DLS is prohibited from conducting the following activities:

a. Memindahkan barang dari tempat penyimpanan yang telah disepakati.

a. Move assets from a storage area that has been agreed.

b. Melekatkan barang pada bangunan atau dalam tanah. b. Attach the assets in buildings or in the ground.c. Melekatkan atau menjadikan barang bagian tetap dari

suatu rangkaian barang lain.c. Attach or making assets remain part of a series of other

items.d. Menambah, mengurangi, mengganti, merubah

petunjuk kerja, fungsi, atau mutu dari barang.d. Add, subtract, change, alter work instructions, function,

or quality of the assets.e. Mengambil, mengirim, atau mengizinkan barang

diambil atau dikirim ke luar wilayah Indonesia.e. Take, send, or allow the assets are taken or shipped to

out of Indonesia.

Selama utang DLS terhadap PT Orix Indonesia Finance belum dilunasi, tanpa persetujuan tertulis dari PT Orix Indonesia Finance, DLS dilarang melakukan aktivitas antara lain sebagai berikut:

For the period DLS remains indebted to PT Orix Indonesia Finance, without the prior written consent from PT Orix Indonesia Finance, DLS is prohibited from conducting the following activities:

a. Mengizinkan pihak lain untuk menggunakan peralatan dalam bentuk apapun.

a. Allow others to use the equipment in any form.

b. Melakukan suatu perubahan, baik penambahan ataupun pengurangan atas peralatan.

b. Make a change, either addition or subtraction of equipment.

c. Memindahkan peralatan dari tanah dan bangunan yang telah ditetapkan.

c. Moving the equipment from land and buildings that have been agreed.

Beban bunga dari utang sewa pembiayaan untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014 dan 2013, disajikan sebagai “Beban Bunga” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian (Catatan 30).

Interest expenses on finance lease payables for the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014 and 2013 are presented as "Interest Expenses" in the consolidated statements ofprofit or loss and other comprehensive income (Note 30).

22. LIABILITAS IMBALAN KERJA KARYAWAN 22. LIABILITIES FOR EMPLOYEES’ BENEFITS

Pada tanggal 30 Juni 2015, 31 Desember 2014, 2013,2012 dan 1 Januari 2012/31 Desember 2011, Grup mencatat penyisihan imbalan pascakerja karyawan masing-masing berdasarkan perhitungan aktuaris independen yang dilakukan oleh PT Padma Raya Aktuaria, dalam laporannya masing-masing tertanggal 10 Juli 2015, 10 Februari 2015, 10 Februari 2014,9 Januari 2014 dan 9 Januari 2014, dan menggunakan metode “Projected Unit Credit” dengan asumsi-asumsi sebagai berikut:

As of December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011, the Group recognize employees’ benefits cost based on the independent actuary’s calculation of PT Padma Raya Aktuaria in its reports dated July 10, 2015, February 10, 2015, February 10, 2014, January 9, 2014 and January 9, 2014, respectively, using “Projected Unit Credit” method with the following assumptions:

— F-119 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

106

22. LIABILITAS IMBALAN KERJA KARYAWAN (lanjutan) 22. LIABILITIES FOR EMPLOYEES’ BENEFITS (continued)

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4)

Tingkat diskonto per tahun 8,25% 8,00% 8,25-8,50% 5,00% 5,50-5,75% Discount rateKenaikan gaji rata-rata Average increased salary

per tahun 8,00% 8,00% 5,00% 5,00% 5,00% per yearUsia pensiun normal 55 Tahun/Years 55 Tahun/Years 55 Tahun/Years 55 Tahun/Years 55 Tahun/Years Normal retirement ageTingkat mortalitas 100% TMI3 100% TMI3 100% TMI3 100% TMI3 100% TMI3 Mortality rateTingkat hasil yang Expected rate of

diharapkan atas return on aset program 8,25% 8,00% 8,25-8,50% 5,00% 5,50-5,75% plan assets

Rekonsiliasi jumlah liabilitas imbalan kerja karyawan pada laporan posisi keuangan konsolidasian adalah sebagai berikut:

The details of liabilities for employees’ benefits in the consolidated statements of financial position are as follows:

1 Januari

2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Nilai kini Present value of defined

kewajiban imbalan pasti 61.340 54.597 25.332 25.083 18.467 benefit obligationNilai wajar aset (15.752) (14.625) (9.511) (7.199) (3.222) Fair value of assets Liabilitas imbalan kerja Liabilities for employees’

karyawan 45.588 39.972 15.821 17.884 15.245 benefits

Rincian beban imbalan kerja karyawan yang diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian adalah sebagai berikut:

Details of employees’ benefits expenses recognized in the consolidated statements of profit or loss and other comprehensive income are as follows:

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated, Note 4) Beban jasa kini 4.287 1.649 3.492 4.316 2.802 Current service expense Beban bunga 1.535 629 1.257 881 832 Interest expenseBeban jasa lalu 411 391 782 263 - Past service expense Jumlah beban imbalan Total employees’ benefits

kerja (Catatan 29) 6.233 2.669 5.531 5.460 3.634 expenses (Note 29)

— F-120 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

107

22. LIABILITAS IMBALAN KERJA KARYAWAN (lanjutan) 22. LIABILITIES FOR EMPLOYEES’ BENEFITS (continued)

Rincian beban imbalan kerja karyawan yang diakui pada ekuitas dalam penghasilan komprehensif lain adalah sebagai berikut:

Details of employees’ benefits expenses are recognized on equity in other comprehensive income are as follows:

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated, Note 4) Pengukuran kembali

liabilitas (aset) imbalan Remeasurement on the pasti neto 1.245 (633) (1.265 ) 1.221 (301) net liabilities (assets)

Keuntungan (kerugian) aktuarial yang timbul Actuarial gain (loss) dari: from: Perubahan asumsi Changes in financial keuangan (1.540) 9.671 19.342 (9.618) 1.558 assumptions Penyesuaian berdasarkan Adjustment based on pengalaman liabiltas experience program 1.447 1.860 3.720 3.318 1.248 liabilities program

Total beban yang diakui Total expense recognized

pada penghasilan in other komprehensif lain 1.152 10.898 21.797 (5.079) 2.505 comprehensive income

Mutasi liabilitas imbalan kerja karyawan adalah sebagai berikut:

Movements in liabilities for employees’ benefits are follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Saldo awal 39.972 15.821 17.884 15.245 12.813 Beginning balanceIuran pemberi kerja (1.800) (3.075) (3.175) (3.500) (3.100) Employees’ contributionPembayaran manfaat Payment of employees’

karyawan (37) - - - - benefitsBeban imbalan kerja karyawan Employees’ benefit

tahun berjalan expenses for (Catatan 29) 6.233 5.531 5.460 3.634 2.671 current year (Note 29)

Penghasilan komprehensif Other comprehensive lain 1.152 21.797 (5.079 ) 2.505 2.861 income

Saldo Entitas Anak saat Balance as at acquisition diakusisi - - 693 - - of Subsidiary

Efek translasi 68 (102) 38 - - Translation effect

Saldo akhir 45.588 39.972 15.821 17.884 15.245 Ending balance

Grup menyelenggarakan program pensiun imbalan pasti yang didanai untuk seluruh karyawan tetapnya yang memenuhi syarat. Pendanaan program tersebut dikelola oleh Dana Pensiun Lembaga Keuangan PT Asuransi Jiwa Manulife Indonesia. Iuran pemberi kerja yang dibayarkan masing-masing sebesar Rp 1.800 untuk periode enam bulan yang berakhir pada tanggal 30 Juni 2015 dan Rp 3.075, Rp 3.175, Rp 3.500, dan Rp 3.100 untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011.

The Group provides a funded defined benefit pension plan for all its permanent employees who qualify. The funding program is managed by PT Asuransi Jiwa Manulife Indonesia Pension Fund. Employees’ contribution paid amounted to Rp 1,800 for the six-month period ended June 30, 2015 and Rp 3,075, Rp 3,175, Rp 3,500, and Rp 3,100for the years ended December 31, 2014, 2013, 2012 andJanuary 1, 2012/ December 31, 2011, respectively.

— F-121 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

108

22. LIABILITAS IMBALAN KERJA KARYAWAN (lanjutan) 22. LIABILITIES FOR EMPLOYEES’ BENEFITS (continued)

Manajemen Grup berkeyakinan bahwa jumlah penyisihan imbalan paskakerja karyawan pada tanggal 30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/ 31 Desember 2011 tersebut cukup untuk memenuhi persyaratan Undang-Undang Ketenagakerjaan.

The Group’s management believes that the sum of employees’ benefits liabilities as of June 30, 2015,December 31, 2014, 2013, 2012 dan January 1, 2012/ December 31, 2011 are adequate to cover the requirement of Labor Law.

Informasi historis atas nilai kini liabilitas imbalan pasti, nilai wajar aset program dan penyesuaian adalah sebagai berikut:

Historical information on the present value of the defined benefit obligation, the fair value of plan assets and theadjustments are as follows:

2015 2014 2013 2012 2011

Nilai kini kewajiban imbalan pasti (61.340) (54.597) (25.332) (25.083) (18.467)

Present value obligationdefined benefit

Nilai wajar aset program 15.752 14.625 9.511 7.199 3.222 Fair value of plan assets

Defisit (45.588) (39.972) (15.821) (17.884) (15.245) Deficit

Penyesuaian berdasarkan pengalaman program 1.447 3.720 3.318 1.248 (81)

Adjustments based onexperience

program

Analisis sensitivitas dari perubahan asumsi-asumsi utama terhadap liabilitas imbalan kerja untuk periode enam bulan yang berakhir 30 Juni 2015 adalah sebagai berikut:

The sensitivities analisys from the changes of the main of the liabilities for employees’ benefits for the six-month period ended June 30, 2015 are as follows:

Entitas Induk/The Company

DLS, Entitas Anak/a

SubsidiaryAnalisis sensitivitas Sensitivities analisys

Asumsi tingkat diskonto 34.221 25.931 Discount rate assumptionsTingkat diskonto - 1% 38.001 28.412 Discount rate - 1%Tingkat diskonto + 1% 30.732 23.097 Discount rate + 1%

Metode dalam analisa sensitivitasDeterministic

MethodDeterministic

Method Sensitivities analisys methodIuran yang diharapkan masuk ke dalam

aset program 1.200.000 450Contribution are expected to enter

into plan assetsDurasi rata-rata tertimbang dari liabilitas

imbalan 10,44 8,27Weighted average duration of

benefit obligationssss

Metode Deterministic merupakan metode analisa yang tidak mengandung komponen yang sifatnya probabilistik, sehingga hasil yang dihasilkan akan tetap sama sepanjang data yang di-input sama.

Deterministic method is a method of analysis that does not contain components that are probabilistic, so that the results generated will remain the same throughout the same data entered.

Dalam melakukan pengukuran terhadap analisa sensitivitas, aktuaris menggunakan dasar kejadian-kejadian dengan derajat kepastian yang cukup tinggi berdasarkan data saat ini yang telah terjadi.

In measuring the sensitivity analysis, actuary using the basic events with a fairly high degree of certainty based on current data that has happened.

Tidak terdapat perubahan metode dalam melakukan analisa sensitivitas jika dibandingkan dengan periode sebelumnya.

There is no changes of method in the sensitivities analisys if compared with prior period.

— F-122 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

109

23. MODAL SAHAM DAN TAMBAHAN MODAL DISETOR 23. SHARE CAPITAL AND ADDITIONAL PAID-IN CAPITAL

Berdasarkan Akta Notaris DR. Fulgensius Jimmy H.L.T, S.H., M.H., M.M., No. 48 pada tanggal 15 Desember 2009, susunan pemegang saham Entitas Induk dan kepemilikannya pada tanggal 31 Desember 2013, 2012dan 1 Januari 2012/31 Desember 2011 adalah sebagai berikut:

Based on Notarial Deed of DR. Fulgensius Jimmy H.L.T, S.H., M.H., M.M., No. 48 dated December 15, 2009, the composition of the Company’s shareholders as of December 31, 2013, 2012, and January 1, 2012/December31, 2011 are as follows:

31 Desember 2013, 2012 dan 1 Januari 2012/31 Desember 2011/December 31, 2013, 2012 and January 1, 2012/December 31, 2011

(Disajikan kembali, Catatan 4/As restated, Note 4)

Pemegang Saham

Jumlah Saham Ditempatkan dan Disetor

Penuh/Number of Issued and Fully Paid

Persentase Kepemilikan/ Percentage of

Ownership Jumlah/Total ShareholdersPT Kino Investindo 50.000 76,92% 50.000 PT Kino InvestindoHarry Sanusi 14.300 22,00% 14.300 Harry SanusiAli Sanusi 700 1,08% 700 Ali SanusiJumlah 65.000 100,00% 65.000 Total

Berdasarkan Akta Notaris Lenny Janis Ishak, S.H., No. 55 pada tanggal 30 Juni 2014, pemegang saham Entitas Induk menyetujui peningkatan modal dasar dari sebesar Rp 65.000 menjadi sebesar Rp 480.000, peningkatan modal ditempatkan dan disetor penuh sebesar Rp 55.000oleh PT Kino Investindo. Pemegang saham Entitas Induk juga menyetujui hibah seluruh saham ditempatkan dan disetor penuh milik Ali Sanusi sebesar Rp 700 kepadaHarry Sanusi.

Based on Notarial Deed of Lenny Janis Ishak, S.H., No. 55 dated June 30, 2014, the Company’s shareholders agreed to increase authorized capital Rp 65,000 into Rp 480,000,increase of issued and fully paid capital amounting to Rp 55,000 are subscribed by PT Kino Investindo. The Company’s shareholders also agreed to grant issued and fully paid capital held by Ali Sanusi amounting to Rp 700 to Harry Sanusi.

Susunan pemegang saham Entitas Induk dan kepemilikannya pada tanggal 30 Juni 2015 dan 31 Desember 2014 adalah sebagai berikut:

Therefore, the composition of the Company’s shareholders and their ownership as of June 30, 2015 and December 31, 2014 are as follows:

30 Juni 2015 dan 31 Desember 2014/June 30, 2015 and December 31, 2014

Pemegang Saham

Jumlah Saham Ditempatkan dan Disetor

Penuh/Number of Issued and Fully Paid

Persentase Kepemilikan/ Percentage of

Ownership Jumlah/Total ShareholdersPT Kino Investindo 105.000 87,50% 105.000 PT Kino InvestindoHarry Sanusi 15.000 12,50% 15.000 Harry SanusiJumlah 120.000 100,00% 120.000 Total

— F-123 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

110

23. MODAL SAHAM DAN TAMBAHAN MODAL DISETOR (lanjutan)

23. SHARE CAPITAL AND ADDITIONAL PAID-IN CAPITAL (continued)

Tambahan modal disetor merupakan selisih nilai transaksi restrukturisasi entitas sepengendali sehubungan dengan aktivitas akuisisi Entitas Anak sebagai berikut:

Additional paid-in capital represents the difference in value arising from restructuring transactions with entities under common control with respect to the activities of the acquisition of Subsidiaries as follows:

1 Januari

2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) PT Dutalestari Sentratama 4.057 4.057 - - - PT Dutalestari Sentratama

Kino Consumer Philippines Kino Consumer Philippines Inc. (KCP) (51.837) (51.837) - - - Inc. (KCP)

Kinocare (M) Sdn., Kinocare (M) Sdn., Bhd. (KCM) (17.169) (17.169) - - - Bhd. (KCM) Kino Vietnam Company Kino Vietnam Company Limited (KVC) (1.428) (1.428) - - - Limited (KVC)

Jumlah (66.377) (66.377) - - - Total

PT Dutalestari Sentratama (DLS)

Berdasarkan akta notaris Lenny Janis Ishak, S.H., No. 24 tanggal 12 Juni 2014, Entitas Induk mengakuisisi 487 lembar saham DLS dari Harry Sanusi, Ali Sanusi dan Ng Soi Kiauw (yang masing-masing merupakan pihak berelasi), dengan harga beli sebesar Rp 649. Nilai tercatat investasi DLS adalah sebesar Rp 4.706, sehingga selisih antara harga penjualan dengan harga tercatat investasi pada DLS adalah sebesar Rp 4.057.

PT Dutalestari Sentratama (DLS)

Based on notarial deed of Lenny Janis Ishak, S.H., No. 24 dated June 12, 2014, the Company acquired 487 shares in DLS from Harry Sanusi, Ali Sanusi and Ng Soi Kiauw (all are related parties), with acquisition price amounting to Rp 649. The carrying value of investment in DLS amounted to Rp 4,706, hence the difference between the acquisition price and the carrying value of investment in DLS amounted to Rp 4,057.

Kino Consumer Philippines Inc. (KCP)

Berdasarkan perjanjian Jual Beli Saham pada tanggal 2 Juli 2014, KINT, Entitas Anak, membeli 41.035.995 lembar saham KCP dari Harry Sanusi (pihak sepengendali), dengan harga beli sebesar Rp 11.196. Nilai tercatat investasi KCP adalah sebesar (Rp 40.641), sehingga selisih antara harga penjualan dengan harga tercatat investasi pada KCP adalah sebesar (Rp 51.837).

Kino Consumer Philippines Inc. (KCP)

Based on Share Sale and Purchase Agreement dated July 2, 2014, KINT, Subsidiary, acquired 41,035,995 shares in KCP from Harry Sanusi (entity under common control), with acquisition price amounting to Rp 11,196. The carrying value of investment in KCP amounted to (Rp 40,641), hence the difference between the acquisition price and the carrying value of investment in KCP amounting to (Rp 51,837).

Kinocare (M) Sdn., Bhd. (KCM)

Berdasarkan perjanjian Jual Beli Saham pada tanggal 9 Juni 2014, KINT, Entitas Anak, membeli 1.455.000 lembar saham KCM dari Harry Sanusi (pihak sepengendali), dengan harga beli sebesar Rp 5.333. Nilai tercatat investasi KCM adalah sebesar (Rp 11.836), sehingga selisih antara harga penjualan dengan harga tercatat investasi pada KCM adalah sebesar (Rp 17.169).

Kinocare (M) Sdn., Bhd. (KCM)

Based on Share Sale and Purchase Agreement dated June 9, 2014, KINT, Subsidiary, acquired 1,455,000 shares in KCM from Harry Sanusi (entity under common control), with acquisition price amounting to Rp 5,333. The carrying value of investment in KCM amounted to (Rp 11,836), hence the difference between the acquisition price and the carrying value of investment in KCM amounted to (Rp 17,169).

— F-124 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

111

23. MODAL SAHAM DAN TAMBAHAN MODAL DISETOR (lanjutan)

23. SHARE CAPITAL AND ADDITIONAL PAID-IN CAPITAL (continued)

Kino Vietnam Company Limited (KVC)

Berdasarkan perjanjian Jual Beli Saham pada tanggal 2 Juli 2014, KINT, Entitas Anak, membeli kepemilikan KVC dari Harry Sanusi (pihak berelasi), dengan harga beli sebesar Rp 1.098. Nilai tercatat investasi KVC adalah sebesar (Rp 330), sehingga selisih antara harga penjualan dengan harga tercatat investasi pada KVC adalah sebesar (Rp 1.428).

Kino Vietnam Company Limited (KVC)

Based on Share Sale and Purchase Agreement dated July 2, 2014, KINT, Subsidiary, acquired ownership of KVC from Harry Sanusi (a related party), with acquisition price amounting to Rp 1,098. The carrying value of investment in KVC amounted to (Rp 330), hence the difference between the acquisition price and the carrying value of investment in KVC amounted to (Rp 1,428).

24. DIVIDEN DAN CADANGAN UMUM 24. DIVIDEND AND GENERAL RESERVES

Berdasarkan Keputusan Sirkuler para Pemegang Saham Sebagai tanggal 29 Juni 2015, para pemegang saham Entitas Induk menyetujui pembentukan cadangan umum sebesar Rp 24.000 dari saldo laba Entitas Induk.

Based on Circular Decision of Shareholders on June 29, 2015, the Company’ Shareholders approved appropriaton of general reserve amounting to Rp 24,000 from the Company’s retained earnings.

Berdasarkan surat No. 105/RR/CBGII/V/2014 tertanggal 8 Mei 2014, CIMB telah menyetujui pembagian dividen kas atas laba Entitas Induk dengan batas maksimum pembagian dividen Rp 40.000 (Catatan 15).

Based on the letter No. 105/RR/CBGII/V/2014 dated May 8, 2014, CIMB has approved to distribute cash dividend on the Company's income with the maximum limit of dividend distribution of Rp 40,000 (Note 15).

Berdasarkan Keputusan Sirkuler para Pemegang Saham Sebagai Pengganti Rapat Umum Pemegang Saham Luar Biasa tanggal 6 Juni 2014, Entitas Induk membagikan dividen kas sebesar Rp 21.931 dari saldo laba Entitas Induk.

Based on Circular Decision of Shareholders as a Subtitute of Extraordinary Shareholders General Meetings June 6, 2014, the Company distributed cash dividend amounting to Rp 21,931 from the Company’s retained earnings.

Dalam Rapat Umum Pemegang Saham Tahunan Entitas Induk tanggal 19 Desember 2013, yang berita acaranya diaktakan berdasarkan Akta Notaris No. 91 pada tanggal yang sama, yang dibuat di hadapan DR. Fulgensius Jimmy H.L.T.,S.H.,M.H.,M.M., para pemegang saham menyetujui perhitungan dan pembagian dividen kas untuk tahun buku 2013 sebesar Rp 5.850.

In the General Meeting of Shareholders of the Company on December 19, 2013, notarized by Notarial Deed No. 91 on the same date, which was made in the presence of DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., the shareholders approved the calculation and payment of dividend for the financial year 2013 amounting to Rp 5,850.

Berdasarkan surat No. 9A/DP/CBGII/I/2014 tertanggal 16 Januari 2014, CIMB telah menyetujui pembagian dividen kas atas laba Entitas Induk tahun 2013 (Catatan 15).

Based on the letter No. 9A/DP/CBGII/I/2014 dated January 16, 2014, CIMB has approved to distribute cash dividend on the Company's income in 2013 (Note 15).

Dalam Rapat Umum Pemegang Saham Tahunan Entitas Induk tanggal 31 Desember 2012, yang berita acaranya diaktakan dalam Akta Notaris No. 19 tanggal 5 April 2013 yang dibuat di hadapan DR. Fulgensius Jimmy H.L.T., S.H.,M.H.,M.M., para pemegang saham menyetujui perhitungan dan pembagian dividen kas tahunan untuk tahun buku 2012 sebesar Rp 5.850.

In the General Meeting of Shareholders of the Company on December 31, 2012, notarized by Notarial Deed No. 19 April 5, 2013, which was made in the presence of DR. Fulgensius Jimmy H.L.T.,S.H.,M.H,M.M, the shareholders approved the calculation and distribution of the annual dividend for the financial year 2012 amountingto Rp 5,850.

Berdasarkan surat No. 002A/DP/CBGII/I/2013 tertanggal 7 Januari 2013, CIMB telah menyetujui pembagian dividen kas atas laba Entitas Induk tahun 2012 (Catatan 15).

Based on the letter No. 002A/DP/CBGII/I/2013 dated January 7, 2013, CIMB has approved to distribute cash dividend on the Company's income in 2012 (Note 15).

— F-125 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

112

25. PENGHASILAN KOMPREHENSIF LAIN 25. OTHER COMPREHENSIVE INCOMEPada tanggal 30 Juni 2015, 31 Desember 2014, 2013,2012 dan 1 Januari 2012/31 Desember 2011, rincian penghasilan komprehensif lain adalah sebagai berikut:

As of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011, the details of other comprehensive income are as follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4)

Pos yang tidak akan Items that will not be direklasifikasikan reclassified to ke laba rugi profit or loss Surplus revaluasi tanah Land revaluation surplus Beginning balance of Saldo awal periode/tahun 407.602 296.310 154.812 - - period/year Surplus periode/tahun Current period/year berjalan 24.126 111.376 156.307 179.764 - surplus Kepentingan non-pengendali (2) (84) (385) (649) - Non-controlling interest Dampak penyesuaian Effect of proforma proforma - - (14.424) (24.303) - adjustment

Saldo surplus revaluasi Land revaluation surplus tanah akhir periode/ ending balance of tahun 431.726 407.602 296.310 154.812 - period/year

Pengukuran kembali atas Remeasurement of program imbalan pasti defined benefit plan Beginning balance of Saldo awal periode/tahun - - - - - period/year Keuntungan (kerugian) Current period/year periode/tahun berjalan (1.152) (21.797) 5.079 (2.505) (2.861) actuarial gain (loss)

Pajak penghasilan Income tax of terkait pengukuran remeasurement of kembali atas program defined benefit imbalan pasti 287 5.448 (1.270) 626 715 plan Kepentingan non-pengendali - 158 (28) 26 20 Non-controlling interest Dampak penyesuaian Effect of proforma proforma - 2.974 (1.049) 974 739 adjustment Reklasifikasi ke saldo Reclassification to laba 865 13.217 (2.732) 879 1.387 retained earnings

Saldo pengukuran Remeasurement of kembali atas program defined benefit plan imbalan pasti ending balance of akhir periode/tahun - - - - - period/year

Pos yang akan Items that will not be direklasifikasikan reclassified to ke laba rugi profit or loss Selisih kurs karena Exchange difference on penjabaran laporan translation of keuangan financial statements Beginning balance of Saldo awal periode/tahun 2.390 - - - - period/year Keuntungan (kerugian) Gain (loss) on foreign selisih kurs 840 2.378 (8.994) - - exchange Dampak penyesuaian Effect of proforma proforma - 11 8.811 - - adjustment Kepentingan non-pengendali - 1 183 - - Non-controlling interest

Exchange difference on Selisih kurs karena translation of financial penjabaran laporan statements ending akhir periode/tahun 3.230 2.390 - - - balance of period/year

Jumlah penghasilan Total other comprehensive komprehensif lain 434.956 409.992 296.310 154.812 - income

— F-126 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

113

26. PENJUALAN 26. SALES Rincian penjualan - bersih adalah sebagai berikut: The details of sales - net are as follows : 31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated, Note 4) Perawatan tubuh 877.622 713.236 1.389.297 1.172.145 865.140 Personal careMinuman 632.528 548.549 1.167.612 904.859 750.935 BeverageMakanan 234.099 329.632 775.391 176.852 73.605 FoodsFarmasi 2.378 3.845 7.086 13.458 2.457 Pharmaceutical Jumlah 1.746.627 1.595.262 3.339.386 2.267.314 1.692.137 Total Tidak ada transaksi penjualan kepada satu pelanggan dengan jumlah kumulatifnya di atas 10% dari jumlahpenjualan konsolidasian untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dantahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 2012.

There are no sales transaction to the customers withrevenues exceeding 10% from the total consolidated salesfor the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013 and 2012.

Seluruh penjualan untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal 31 Desember 2014 dan2013 berasal dari pihak ketiga.

All sales for six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014 and2013 were obtained from third parties

27. BEBAN POKOK PENJUALAN 27. COST OF SALES

Rincian beban pokok penjualan adalah sebagai berikut: Details of cost of sales are as follows: 31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated, Note 4) Bahan baku dan pengemas Raw material and packaging yang digunakan used Saldo awal 139.784 107.776 107.776 115.066 96.307 Beginning balance Pembelian 609.496 663.420 1.265.991 952.665 816.936 Purchase Pemusnahan 4.733 2.289 8.812 5.632 10.359 Disposal Saldo akhir (140.345 ) (141.203) (139.784) (107.776) (115.066) Ending balance Sub-jumlah 613.668 632.282 1.242.795 965.587 808.536 Sub-total Tenaga kerja langsung 43.620 40.140 78.918 58.329 42.653 Direct labor Beban pabrikasi Manufacturing overhead Perijinan 22.482 10.648 26.764 29.599 19.562 Licenses Gaji dan upah 15.388 12.064 28.483 20.621 17.887 Salaries and wages Utilitas 11.590 8.546 19.754 13.179 9.582 Utilities Perawatan Repair and dan pemeliharaan 10.830 12.007 25.228 16.992 26.260 maintenances Penyusutan (Catatan 14) 9.010 15.430 35.770 48.387 36.871 Depreciation (Note 14) Bahan bakar 6.947 7.689 13.883 16.513 16.388 Fuel Keperluan kantor 2.677 3.793 7.163 6.302 6.876 Office supplies Pengolahan limbah 2.625 2.471 7.881 2.206 2.587 Sewage cultivation Transportasi 2.144 1.032 2.086 1.002 577 Transportation Sumbangan 217 175 591 391 320 Donations

Asuransi 195 430 264 904 756 Insurances Sampel produk 125 1.100 2.190 1.505 1.827 Product sample Lain-lain 2.688 319 1.211 421 827 Others Total manufacturing Jumlah beban pabrikasi 86.918 75.704 171.268 158.022 140.320 overhead Jumlah beban produksi 744.206 748.126 1.492.981 1.181.938 991.509 Total production costs

— F-127 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

114

27. BEBAN POKOK PENJUALAN (lanjutan) 27. COST OF SALES (continued)

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated, Note 4)

Persediaan barang dalam proses Work in process Saldo awal 5.219 4.648 4.648 3.741 3.864 Beginning balance Pemusnahan 322 179 1.534 806 122 Disposal Saldo akhir (6.335) (7.959) (5.219) (4.648) (3.741) Ending balance Sub-jumlah (794) (3.132) 963 (101) 245 Sub-total

Beban pokok produksi 743.412 744.994 1.493.944 1.181.837 991.754 Cost of goods manufactured Persediaan jadi Finished goods Saldo awal 188.334 111.819 111.819 88.407 47.203 Beginning balance Pembelian 221.728 373.657 767.421 182.897 65.211 Purchase Pemusnahan 4.506 4.281 16.086 13.908 4.870 Disposal Saldo akhir (145.749) (196.319) (188.334) (111.819) (88.407) Ending balance Sub-jumlah 268.819 293.438 706.992 173.393 28.877 Sub-total Jumlah 1.012.231 1.038.432 2.200.936 1.355.230 1.020.631 Total Tidak terdapat transaksi pembelian kepada satu pemasokpihak ketiga dengan jumlah kumulatifnya di atas 10% dari jumlah penjualan konsolidasian pada periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan tahun yang berakhir pada tanggal-tanggal31 Desember 2014, 2013 dan 2012.

There is no purchases to single third-party supplier withpurchases exceeding 10% from the total consolidatedsales for the six-months period ended June 30, 2015 and 2014 and for the years ended December 31, 2014, 2013and 2012.

28. BEBAN PENJUALAN 28. SELLING EXPENSES

Beban penjualan terdiri atas: Selling expenses consist of:

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated, Note 4) Iklan dan promosi 266.159 254.246 510.361 479.818 385.303 Advertising and promotionTransportasi 53.912 53.292 114.076 78.031 61.448 TransportationGaji 47.511 45.862 92.105 47.997 28.126 SalariesSewa 7.276 3.334 11.315 6.411 1.692 RentPelatihan 391 212 451 2.339 830 Training Jumlah 375.249 356.946 728.308 614.596 477.399 Total

— F-128 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

115

29. BEBAN UMUM DAN ADMINISTRASI 29. GENERAL AND ADMINISTRATIVE EXPENSES

Beban umum dan administrasi terdiri atas: General and administrative expenses consist of:

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated, Note 4) Gaji, upah dan Salaries, wages and tunjangan 85.065 66.711 143.519 87.755 57.046 allowancesSewa 7.231 5.028 10.469 9.891 5.437 RentalPenyusutan (Catatan 14) 7.002 6.077 13.279 15.058 11.592 Depreciation (Note 14)Imbalan kerja karyawan Employees’ benefits (Catatan 22) 6.233 2.669 5.531 5.460 3.634 (Note 22)Keperluan kantor 3.523 6.072 10.672 10.964 6.459 Office suppliesIjin dan retribusi 2.785 1.618 3.749 3.704 1.674 Permit and retributionPemeliharaan dan perawatan 2.681 2.613 6.165 6.796 4.510 Repair and maintenance Water, electricity and Air, listrik dan telepon 3.324 3.294 6.583 4.824 3.003 telephoneJasa profesional 2.384 3.291 5.204 3.013 765 Professional feesPenyisihan penurunan nilai Allowance for impairment dan persediaan usang and obsolescence of (Catatan 8) 2.093 2.401 3.084 6.266 13.565 inventories (Note 8)Perjalanan dinas 1.568 2.377 5.513 9.597 6.114 Business travelOperasional 1.566 1.229 2.262 3.730 2.044 OperationalRiset dan pengembangan 908 1.331 2.505 1.307 1.429 Research and developmentTransportasi 617 318 761 671 739 Transportation Representation and Representasi dan jamuan 539 601 1.349 1.265 1.119 EntertaimentPenyisihan atas kerugian Allowances for impairment penurunan nilai piutang losses of trade

usaha (Catatan 6) 277 845 897 5.939 513 receivables (Note 6)Asuransi 16 244 1.134 1.133 468 InsurancesLainnya 295 297 1.140 1.171 157 Others Jumlah 128.107 107.016 223.816 178.544 120.268 Total

30. BEBAN BUNGA 30. INTEREST EXPENSES

Perincian beban bunga berdasarkan sumber pendanaan terdiri dari:

The details of interest expenses based on sources of fundare as follows:

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated, Note 4) Utang bank jangka pendek Short-term bank loans (Catatan 15) (Note 15) PT Bank CIMB PT Bank CIMB

Niaga Tbk 11.080 10.425 21.187 11.894 8.981 Niaga Tbk PT Bank DBS Indonesia 10.446 886 5.927 2.059 135 PT Bank DBS Indonesia PT Bank Central PT Bank Central Asia Tbk 7.618 4.282 11.073 5.163 4.489 Asia Tbk PT Bank Danamon PT Bank Danamon Indonesia Tbk 5.845 3.588 8.861 4.287 1.517 Indonesia Tbk PT Bank Index PT Bank Index Selindo 1.245 - 2.018 742 825 Selindo PT Bank Ganesha - - - 1.547 3.225 PT Bank Ganesha

— F-129 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

116

30. BEBAN BUNGA (lanjutan) 30. INTEREST EXPENSES (continued)

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated, Note 4)

Utang bank jangka panjang Long-term bank loans (Catatan 19) (Note 19)

PT Bank Central PT Bank Central Asia Tbk 3.168 2.308 5.244 3.380 2.646 Asia Tbk PT Bank CIMB PT Bank CIMB Niaga Tbk 1.844 1.855 2.956 3.774 3.067 Niaga Tbk PT Bank Index PT Bank Index Selindo 825 - 964 242 689 Selindo PT Bank CIMB PT Bank CIMB Niaga Tbk Unit Niaga Tbk Unit Usaha Syariah - - 269 1.520 3.961 Usaha Syariah PT Bank Danamon PT Bank Danamon Indonesia Tbk - 1 26 143 257 Indonesia Tbk Utang pembiayaan Customer finance konsumen (Catatan 20) payables (Note 20) PT BCA Finance 64 99 175 220 72 PT BCA Finance PT Bank Index PT Bank Index Selindo 28 200 599 297 1.265 Selindo PT Mitsui Leasing PT Mitsui Leasing Capital - - - - 12 Capital Indonesia Indonesia Lain-lain 42 34 67 38 - Others Utang sewa Finance lease pembiayaan (Catatan 21) payables (Note 21) PT Dipo Star PT Dipo Star

Finance 370 587 772 1.037 - Finance PT Orix Indonesia PT Orix Indonesia Finance 220 90 260 27 - Finance PT Bank Central PT Bank Central Asia Finance 6 22 36 19 - Asia Finance Lain-lain 52 25 69 52 - Others Jumlah 42.853 24.402 60.503 36.441 31.141 Total

31. MANAJEMEN RISIKO KEUANGAN 31. FINANCIAL RISK MANAGEMENT

Tingkat probabilitas risiko yang sangat potensial terjadi dari instrumen keuangan Grup adalah risiko pasar (yaitu risiko mata uang asing dan risiko tingkat suku bunga), risiko kredit, dan risiko likuiditas. Kebijakan akan pentingnya mengelola tingkat risiko ini telah meningkat secara signifikan dengan mempertimbangkan beberapa parameter perubahan dan volatilitas pasar keuangan baik di Indonesia maupun internasional. Direksi Grup menelaah dan menyetujui kebijakan risiko yang mencakup toleransi risiko dalam strategi mengelola risiko-risiko yang dirangkum di bawah ini.

Potential risks arising from the Group’s financial instruments relates to market risk (foreign currencyexchange rate risk and interest rate risk), credit risk and liquidity risk. Policies of the importance of managing the risk level has increased significantly considering changes of several parameters and volatility of financial markets both in Indonesia and internationally. The Group’s Director reviews and approves risk policies covering the risk tolerance in the strategy to manage the risks which are summarized below.

RISIKO PASAR MARKET RISK

Risiko pasar merupakan risiko yang terutama disebabkan karena karena perubahan harga pasar. Grup dipengaruhi oleh risiko pasar, terutama risiko nilai tukar mata uang asing dan risiko tingkat suku bunga.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Group is affected by market risks, especially the risk of foreign currency exchange rate and interest rate risk.

— F-130 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

117

31. MANAJEMEN RISIKO KEUANGAN (lanjutan) 31. FINANCIAL RISK MANAGEMENT (continued)

Risiko Mata Uang Asing Foreign Currency Exchange Risk

Risiko mata uang adalah risiko dalam hal nilai wajar atau arus kas masa datang dari suatu instrumen keuangan akan berfluktuasi akibat perubahan nilai tukar mata uang asing. Eksposur Grup terhadap fluktuasi nilai tukar berasal dari kas dan bank, piutang usaha, piutang lain-lain, deposito yang dibatasi penggunaannya, aset tidak lancarlainnya - uang jaminan, utang usaha, utang lain-lain,beban masih harus dibayar, utang sewa pembiayaan danutang pembiayaan konsumen dalam mata uang asing.

Currency risk is the risk in terms of fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign currency exchange rates. Our exposure to exchange rate fluctuations from cash and banks, trade receivables, other receivables, restricted deposits, other non-current assets - refundable deposits, trade payables, other payables, accrued expenses, finance lease payablesand consumer financing payables in foreign currency.

31 Desember/December 31, 30 Juni 2015 2014 2013 2012 2011 Mata Uang Mata Uang Mata Uang Mata Uang Mata Uang Asing/ Asing/ Asing/ Asing/ Asing/ Foreign Ekuivalen/ Foreign Ekuivalen/ Foreign Ekuivalen/ Foreign Ekuivalen/ Foreign Ekuivalen/ Currency Equivalent Currency Equivalent Currency Equivalent Currency Equivalent Currency Equivalent Aset/AssetsKas dan bank/ cash and banks Kas/cash

USD 18.469 246 17.538 218 13.004 158 10.686 103 13.028 118PHP 366.905 108 364.170 101 220.800 61 - - - -MYR 13.802 49 4.846 17 9.369 35 - - - -VND 141.251.800 86 75.260.000 44 70.972.286 41 - - - -

Bank/banksUSD 719.506 9.592 1.091.308 13.576 549.960 6.703 54.157 524 87.701 795PHP 7.726.667 2.282 7.004.518 1.946 3.745.066 1.028 - - - -MYR 354.794 1.252 586.635 2.090 98.310 364 - - - -VND 212.482.431 130 699.556.758 407 310.217.952 180 - - - -

Piutang usaha/ Trade receivables

USD 657.367 8.764 601.403 7.482 295.492 3.601 3.367.110 32.560 3.970.173 36.002 PHP 125.311.529 37.011 122.607.684 34.068 87.433.417 24.003 - - - -MYR 1.994.191 7.034 1.356.077 4.830 2.627.119 9.740 - - - -VND 913.565.392 558 - - 561.730.400 326 - - - -

BND - - 137 1 6.080 58 - - - -

Piutang lain-lain/ Other receivables USD 208.353 2.778 - - - - - - - -

PHP 842.514 249 3.400.033 945 427.352 117 - - - -MYR 452.151 1.595 238.281 849 2.686 10 - - - -VND - - 8.851.733 5 24.153.322 14 - - - -

Deposito yang dibatasi penggunaannya/ Restricted deposits

USD 46.777 624 44.502 554 80.584 982 226.221 2.188 87.215 791

Aset tidak lancar lainnya - uang jaminan/Other non-current asset - refundable deposits

PHP 209.147 62 254.709 71 202.849 56 - - - -MYR 39.980 141 24.080 86 101.824 377 - - - -VND 314.865.684 192 228.815.500 133 229.815.500 133 - - - -

— F-131 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

118

31. MANAJEMEN RISIKO KEUANGAN (lanjutan) 31. FINANCIAL RISK MANAGEMENT (continued)

RISIKO PASAR (lanjutan) MARKET RISK (continued)

Risiko Mata Uang Asing (lanjutan) Foreign Currency Risk (continued)

31 Desember/December 31, 30 Juni 2015 2014 2013 2012 2011 Mata Uang Mata Uang Mata Uang Mata Uang Mata Uang Asing/ Asing/ Asing/ Asing/ Asing/ Foreign Ekuivalen/ Foreign Ekuivalen/ Foreign Ekuivalen/ Foreign Ekuivalen/ Foreign Ekuivalen/ Currency Equivalent Currency Equivalent Currency Equivalent Currency Equivalent Currency Equivalent Liabilitas/liabilities Utang usaha/ Trade payables USD 10.236.139 136.468 9.335.170 116.130 6.423.427 78.295 7.153.360 69.173 5.953.106 53.983

EUR 42.308 631 6.096 92 135.366 2.277 131.675 1.687 9.785 115 SGD 2.689 27 2.735 26 151.371 1.457 595 5 540 4

VND 348.240.565 213 37.981.951 22 49.039.943 28 - - - - PHP 58.416.160 17.253 - - 89.833.381 24.662 - - - -

MYR 70.582 249 - - - - - - - -JPY - - - - 231.778 27 87.112 10 2.227.500 260

Utang lain-lain/ Other payables PHP 11.653.671 3.442 12.964.739 3.602 9.685.972 2.659 - - - - MYR 605.539 2.136 6.914 25 478.973 1.776 - - - -

VND 81.718.915 50 8.228.440 5 4.506.104 3 - - - - USD 925 12 4.411 55 - - - - - -

Beban masih harus dibayar/ accrued expenses PHP 24.255.454 7.164 31.754.156 8.823 43.141.929 11.844 - - - - MYR 742.508 2.619 637.363 2.270 428.574 1.589 - - - -

VND 217.665.481 133 75.243.374 44 40.000.000 23 - - - - USD 5.937 79 7.568 94 - - - - - -

Utang pembiayaan konsumen/

Consumer financing payables MYR 339.446 1.197 484.839 1.727 185.042 686 - - - -

Utang sewa pembiayaan/

Finance lease payables PHP 2.944.971 870 2.984.480 829 1.529.736 420 - - - - MYR 93.456 330 - - - - - - - -

Aset (liabilitas) moneter - bersih/ Monetary assets (liabilities) - net USD (8.592.529 ) (114.555 ) (7.592.398 ) (94.449 ) ( 5.484.387 ) ( 66.851 ) (3.495.186 ) (33.798 ) (1.794.989 ) (16.277) PHP 37.186.506 10.983 85.927.739 23.877 ( 52.161.534 ) ( 14.320 ) - - - - MYR 1.003.387 3.540 1.080.803 3.850 1.746.719 6.475 - - - - VND 934.540.346 570 891.030.226 518 1.103.343.413 640 - - - - EUR (42.308) (631) (6.096) (92 ) ( 135.366 ) ( 2.277 ) (131.675 ) (1.687 ) (9.785 ) (115) SGD (2.689 ) (27 ) (2.735 ) (26 ) ( 151.371 ) ( 1.457 ) (595 ) (5 ) (540) (4) BND - - 137 1 6.080 58 - - - -

JPY - - - ( 231.778 ) ( 27 ) (87.112 ) (10 ) (2.227.500 ) (260) Jumlah/Total (100.120 ) (66.321 ) (77.759 ) (35.500 ) (16.656)

— F-132 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

119

31. MANAJEMEN RISIKO KEUANGAN (lanjutan) 31. FINANCIAL RISK MANAGEMENT (continued)

RISIKO PASAR (lanjutan) MARKET RISK (continued)

Risiko Mata Uang Asing (lanjutan) Foreign Currency Risk (continued) Analisa Sensitivitas atas Perubahan Selisih Kurs Sensitivity Analysis on Changes in Foreign Exchange Rates

Aset dan liabilitas moneter dalam mata uang asing dinyatakan dengan menggunakan kurs yang berlaku pada tanggal 30 Juni 2015 dan 2014, 31 Desember 2014, 2013dan 2012.

Assets and liabilities denominated in foreign currencies are stated at the exchange rate prevailing on the date as of June 30, 2015 and 2014, December 31, 2014, 2013 and 2012.

Pada tanggal laporan keuangan konsolidasian diselesaikan dan disetujui untuk diterbitkan, nilai tukar adalah Rp 13.521 untuk 1 USD, Rp 294 untuk 1 PHP, Rp 3.274 untuk 1 MYR, Rp 0,61 untuk 1 VND, Rp 15.252 untuk 1 EUR, dan Rp 9.659 untuk 1 SGD. Apabila kurs tersebut digunakan pada tanggal 30 Juni 2015, liabilitas moneter bersih akan meningkat sebesar Rp 1.937.

On the date of the consolidated financial statements were completed and authorized to be issued, the exchange rate is Rp 13,521 for 1 USD, Rp 294 for 1 PHP, Rp 3,274 for 1 MYR, Rp 0.61 for 1 VND, Rp 15,252 for 1 EUR, and Rp 9,659 for 1 SGD. If these exchange rates are used at June 30, 2015, the net monetary liabilities would increasedby Rp 1,937.

Untuk mengelola eksposur atas fluktuasi nilai tukar mata uang asing, Grup menjaga agar eksposur berada pada tingkat yang dapat diterima dengan membeli mata uang asing yang akan dibutuhkan untuk mengatasi fluktuasi jangka pendek.

To manage its foreign currency fluctuation explosure, the Group maintains the exposure at an acceptable level by buying foreign currencies that will be needed to avoid explosure from short term fluctuations.

Grup tidak mempunyai kebijakan lindung nilai yang formal atas eksposur nilai tukar mata uang asing.

The Group does not have any formal hedging policy for foreign exchange explosure.

Risiko Suku Bunga Interest Rate Risk

Risiko suku bunga adalah risiko dalam hal nilai wajar atau arus kas kontraktual masa datang dari suatu instrumen keuangan akan terpengaruh akibat perubahan suku bunga pasar. Eksposur Grup yang terpengaruh risiko suku bungaterutama terkait dengan kas di bank, deposito yang dibatasi penggunaannya, utang bank jangka pendek,utang bank jangka panjang, utang pembiayaan konsumendan utang sewa pembiayaan.

Interest rate risk is the risk in terms of fair value or future contractual cash flows of a financial instrument will be affected due to changes in market interest rates. Exposure of the Group to interest rate risk is mainly related to cash in banks, restricted deposits, short-term bank loans, long-term bank loans, consumer financing payables and finance lease payables.

Grup memonitor secara ketat fluktuasi suku bunga pasar dan ekspektasi pasar sehingga dapat mengambil langkah-langkah yang paling menguntungkan Grup secara tepat waktu. Manajemen tidak menganggap perlunya melakukan swap suku bunga saat ini.

The Group closely monitor fluctuations in market interest rates and market expectations so that they can take the most profitable steps for the Group in a timely manner. Management does not consider the need for interest rate swaps at this time.

— F-133 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

120

31. MANAJEMEN RISIKO KEUANGAN (lanjutan) 31. FINANCIAL RISK MANAGEMENT (continued)

RISIKO PASAR (lanjutan) MARKET RISK (continued)

Risiko Suku Bunga (lanjutan) Interest Rate Risk (continued)

Tabel berikut adalah nilai tercatat, berdasarkan jatuh temponya, atas aset dan liabilitas keuangan Grup yang terkait risiko suku bunga:

The following table is the carrying amount, by maturity, on the Group's financial assets and liabilities related to interest rate risk:

30 Juni 2015/June 30, 2015Rata-rata

Suku Bunga Efektif/

AverageEffective

Interest Rate

Jatuh Tempodalam Satu (1)

Tahun/DueWithin One (1)

Year

Jatuh TempoPada Tahunke - 2/Due in

2nd Year

Jatuh TempoPada Tahunke - 3/Due in

3rd Year

Jatuh TempoPada Tahunke - 4/Due in

4th Year

Jatuh TempoPada Tahunke - 5/Due in

5th Year Jumlah/Total

Aset/AssetsBunga Tetap/Fixed

Rate

Bank/Banks 0,25% - 1,00% 42.701 - - - - 42.701Deposito yang dibatasi

penggunaannya/ Restricted deposits 0,25%-7,5% 38.604 - - - - 38.604

Liabilitas/LiabilitiesBunga Tetap/Fixed

RateUtang bank jangka

pendek/Short-termbank loans 11%-13% 586.205 - - - - 586.205

Utang bank jangka panjang/Long-term bank loans 10%-13% 46.238 35.986 29.881 24.304 13.730 150.139

Utang pembiayaan konsumen/Consumer financing payables 3,45%-10,15% 1.229 1.379 - - - 2.608

Utang sewapembiayaan/Finance leasepayables 3,75%-11,44% 8.355 2.488 22 - - 10.865

31 Desember 2014/December 31, 2014Rata-rata

Suku Bunga Efektif/

AverageEffective

Interest Rate

Jatuh Tempodalam Satu (1)

Tahun/DueWithin One (1)

Year

Jatuh TempoPada Tahunke - 2/Due in

2nd Year

Jatuh TempoPada Tahunke - 3/Due in

3rd Year

Jatuh TempoPada Tahunke - 4/Due in

4th Year

Jatuh TempoPada Tahunke - 5/Due in

5th Year Jumlah/Total

Aset/AssetsBunga Tetap/Fixed

Rate

Bank/Banks 0,25% - 1,00% 39.368 - - - - 39.368Deposito yang dibatasi

penggunaannya/ Restricted deposits 0,25% - 7,25% 31.524 - - - - 31.524

Liabilitas/LiabilitiesBunga Tetap/Fixed

RateUtang bank jangka

pendek/Short-termbank loans 7,50 - 13,00% 546.504 - - - - 546.504

Utang bank jangka panjang/Long-term bank loans 10,25 - 13,00% 30.656 27.864 18.620 15.107 637 92.884

Utang pembiayaan konsumen/Consumer financing payables 3,40 - 10,15% 2.343 690 323 273 457 4.086

Utang sewapembiayaan/Finance lease payables 3,75 - 11,44% 8.704 5.868 496 104 - 15.172

— F-134 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

121

31. MANAJEMEN RISIKO KEUANGAN (lanjutan) 31. FINANCIAL RISK MANAGEMENT (continued)

RISIKO PASAR (lanjutan) MARKET RISK (continued)

Risiko Suku Bunga (lanjutan) Interest Rate Risk (continued)

31 Desember 2013/December 31, 2013Rata-rata SukuBunga Efektif/

AverageEffective

Interest Rate

Jatuh Tempodalam Satu (1)

Tahun/DueWithin One (1)

Year

Jatuh TempoPada Tahunke - 2/Due in

2nd Year

Jatuh TempoPada Tahun ke- 3/Due in 3rd

Year

Jatuh TempoPada Tahunke - 4/Due in

4th Year

Jatuh TempoPada Tahunke - 5/Due in

5th Year Jumlah/Total

Aset/AssetsBunga Tetap/Fixed

Rate

Bank/Banks 0,10% - 0,25% 59.730 - - - - 59.730Deposito yang dibatasi

penggunaannya/ Restricted deposits 0,25% - 7,25% 10.453 - - - - 10.453

Liabilitas/LiabilitiesBunga Tetap/Fixed

RateUtang bank jangka

pendek/Short-term bank loans 7,75% - 13,00% 265.201 - - - - 265.201

Utang bank jangka panjang/Long-term bank loans 9,50% - 12,00% 31.223 19.540 14.730 5.485 1.973 72.951

Utang pembiayaan konsumen/Consumer financing payables 6,50% - 8,61% 5.837 1.800 191 78 14 7.920

Utang sewapembiayaan/Finance lease payables 6,50% - 6,75% 6.229 6.381 3.514 - - 16.124

31 Desember 2012/December 31, 2012Rata-rata

Suku Bunga Efektif/

AverageEffective

Interest Rate

Jatuh Tempodalam Satu (1)

Tahun/DueWithin One (1)

Year

Jatuh TempoPada Tahunke - 2/Due in

2nd Year

Jatuh TempoPada Tahunke - 3/Due in

3rd Year

Jatuh TempoPada Tahunke - 4/Due in

4th Year

Jatuh TempoPada Tahunke - 5/Due in

5th Year Jumlah/Total

Aset/AssetsBunga Tetap/Fixed

Rate

Bank/Banks 0,10% - 0,25% 7.991 - - - - 7.991Deposito yang dibatasi

penggunaannya/ Restricted deposits 0,25% - 6,00% 11.688 - - - - 11.688

Liabilitas/LiabilitiesBunga Tetap/Fixed

RateUtang bank jangka

pendek/Short-term bank loans 8,52% - 16,00% 253.475 - - - - 253.475

Utang bank jangka panjang / Long-term bank loans 10,00% - 12,50% 43.730 30.237 17.567 12.757 3.513 107.804

Utang pembiayaan konsumen/Consumer financing payables 6,50% - 10,70% 6.847 4.114 802 - - 11.763

— F-135 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

122

31. MANAJEMEN RISIKO KEUANGAN (lanjutan) 31. FINANCIAL RISK MANAGEMENT (continued)

RISIKO PASAR (lanjutan) MARKET RISK (continued)

Risiko Suku Bunga (lanjutan) Interest Rate Risk (continued)

1 Januari 2012/31 Desember 2011/January 1, 2012/December 31, 2011Rata-rata

Suku Bunga Efektif/

AverageEffective

Interest Rate

Jatuh Tempodalam Satu (1)

Tahun/DueWithin One (1)

Year

Jatuh TempoPada Tahunke - 2/Due in

2nd Year

Jatuh TempoPada Tahunke - 3/Due in

3rd Year

Jatuh TempoPada Tahunke - 4/Due in

4th Year

Jatuh TempoPada Tahunke - 5/Due in

5th Year Jumlah/Total

Aset/AssetsBunga Tetap/Fixed

Rate

Bank/Banks 0,10% - 0,25% 4.920 - - - - 4.920Deposito yang dibatasi

penggunaannya/ Restricted time deposits 0,25% - 6,00% 791 - - - - 791

Liabilitas/LiabilitiesBunga Tetap/Fixed

RateUtang bank jangka

pendek/Short-term bank loans 8,52% - 16,00% 188.114 - - - - 188.114

Utang bank jangka panjang / Long-term bank loans 10,00% - 12,50% 30.160 35.208 21.715 9.045 5.276 101.404

Utang pembiayaan konsumen/Consumer financing payables 6,50% - 10,70% 5.652 3.231 1.014 - - 9.897

RISIKO KREDIT CREDIT RISK

Risiko kredit adalah risiko dalam hal pihak ketiga tidak akan memenuhi liabilitasnya berdasarkan instrumen keuangan atau kontrak pelanggan, yang menyebabkan kerugian keuangan. Grup dihadapkan pada risiko kredit dari kegiatan operasi dan dari aktivitas pendanaan, termasuk deposito pada bank, transaksi valuta asing, dan instrumen keuangan lainnya. Risiko kredit terutama berasal dari piutang usaha dari pelanggan dan piutang lain-lain.

Credit risk is the risk that a third party failed to discharge its obligation based on financial instrument or customer contract, which will incur a financial loss. The Group is exposed to credit risk arising from its operating activities and from its financing activities, include deposits with banks, foreign exchange transactions, and other financial instruments. Credit risk arises mainly from trade receivables from customers and other receivables.

Risiko kredit yang berasal dari piutang usaha dan piutang lain-lain dikelola oleh manajemen Grup sesuai dengan kebijakan, prosedur, dan pengendalian dari Grup yang berhubungan dengan pengelolaan risiko kredit pelanggan dan piutang lain-lain. Batasan kredit ditentukan untuk semua pelanggan berdasarkan kriteria penilaian secara internal. Saldo piutang pelanggan dimonitor secara teratur oleh manajemen Grup.

Credit risk arise from trade receivables and other receivables managed by the management of the Group in accordance with the policies, procedures, and control of the Group relating to customer credit risk management and other receivables. Credit limits are determined for all customers based on internal assessment criteria. Thebalance of customer receivables is monitored regularly by the management of the Group.

— F-136 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

123

31. MANAJEMEN RISIKO KEUANGAN (lanjutan) 31. FINANCIAL RISK MANAGEMENT (continued)

RISIKO KREDIT (lanjutan) CREDIT RISK (continued)

Tabel berikut ini memberikan informasi mengenai maksimum kredit yang dihadapi oleh Grup pada tanggal-tanggal 30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011:

The following table provides information regarding the maximum exposure to Group’s credit risk as of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011:

1 Januari

2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Piutang usaha 752.277 445.839 301.937 281.867 247.270 Trade receivablesPiutang lain-lain 5.817 6.793 4.470 1.878 1.879 Other receivables Jumlah 758.094 452.632 306.407 283.745 249.149 Total

Grup melakukan hubungan usaha dengan pihak-pihak yang diakui dan kredibel. Grup memiliki kebijakan untuk semua pelanggan yang akan melakukan perdagangan secara kredit harus melalui prosedur verifikasi kredit. Sebagai tambahan jumlah piutang dipantau secara terus menerus untuk mengurangi risiko penurunan nilai piutang.

The Group conducts business relationships only with recognized and credible parties. The Group has policy to go through customers credit verification procedures. In addition, the amounts of receivables are monitored continuously to reduce the risk for impairment.

RISIKO LIKUIDITAS LIQUIDITY RISK

Risiko likuiditas merupakan risiko dalam hal Grup tidak bisa memenuhi liabilitas pada saat jatuh tempo. Manajemen melakukan evaluasi dan pengawasan yang ketat atas arus kas masuk (cash-in) dan kas keluar (cash-out) untuk memastikan tersedianya dana untuk memenuhi kebutuhan pembayaran liabilitas yang jatuh tempo. Secara umum, kebutuhan dana untuk pelunasan liabilitas jangka pendek maupun jangka panjang yang jatuh tempo diperoleh dari penjualan kepada pelanggan.

Liquidity risk is the risk when the Group is unable to meet its obligations when it is due. The management evaluates and monitors cash - in flows and cash - out flows to ensure the availability of fund to settle the due obligation. In general, the fund needed for settlement of current and long - term liabilities is obtained from sales activities to customers.

Tabel di bawah merupakan profil jatuh tempo aset dan liabilitas keuangan Grup berdasarkan pembayaran kontraktual yang tidak terdiskonto pada tanggal 30 Juni 2015, 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011:

The tables below summarize the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments as of June 30, 2015, December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011:

— F-137 —

The

orig

inal

con

solid

ated

fina

ncia

l sta

tem

ents

incl

uded

he

rein

are

in In

done

sian

lang

uage

PT K

INO

IND

ON

ESIA

Tbk

DA

N E

NTI

TAS

AN

AK

CA

TATA

N A

TAS

LAPO

RA

NK

EUA

NG

AN

KO

NSO

LID

ASI

AN

Perio

de E

nam

Bul

an y

ang

Ber

akhi

r pad

a ta

ngga

l 30

Jun

i 201

5 da

n Ta

hun

yang

Ber

akhi

r pad

a Ta

ngga

l-tan

ggal

31 D

esem

ber 2

014,

201

3 da

n 20

12 s

erta

Per

iode

Ena

m B

ulan

yan

g B

erak

hir p

ada

Tang

gal 3

0 Ju

ni 2

014

(Tid

ak D

iaud

it)

(Din

yata

kan

dala

m ju

taan

Rup

iah,

kec

uali

diny

atak

an la

in)

PT K

INO

IND

ON

ESIA

Tbk

AN

D S

UB

SID

IAR

IES

NO

TES

TO T

HE

CO

NSO

LID

ATE

D F

INA

NC

IAL

STA

TEM

ENTS

Six-

Mon

th P

erio

d En

ded

June

30,

201

5 an

d Ye

ars

Ende

d D

ecem

ber 3

1, 2

014,

201

3 an

d 20

12 a

nd

Six-

Mon

th P

erio

d En

ded

June

30,

201

4 (U

naud

ited)

(Exp

ress

ed in

mill

ions

Rup

iah,

unl

ess

othe

rwis

e st

ated

)

124

31.

MAN

AJEM

EN R

ISIK

O K

EUAN

GAN

(lan

juta

n)31

.FI

NA

NC

IAL

RIS

K M

AN

AG

EMEN

T (c

ontin

ued)

RIS

IKO

LIK

UID

ITAS

(lanj

utan

)LI

QU

IDIT

Y R

ISK

(con

tinue

d)

30 J

uni 2

015/

June

30, 2

015

<=1

tahu

n/<=

1 y

ear

1-2

tahu

n/1-

2 ye

ars

3-5

tahu

n/3-

5 ye

ars

>= 5

tahu

n/>=

5 y

ears

Jum

lah/

Tota

lN

ilai w

ajar

/Fa

ir va

lue

Liab

ilita

sLi

abili

ties

Uta

ng b

ank

jang

ka p

ende

k58

6.20

5-

--

586.

205

586.

205

Sho

rt-te

rm b

ank

loan

sU

tang

usa

haTr

ade

paya

bles

Pih

ak k

etig

a33

4.61

7-

--

334.

617

334.

617

Third

par

ties

Pih

ak b

erel

asi

114.

851

--

-11

4.85

111

4.85

1R

elat

ed p

artie

sU

tang

lain

-lain

7.

221

--

-7.

221

7.22

1O

ther

pay

able

sB

eban

mas

ih h

arus

dib

ayar

85.7

22-

--

85.7

2285

.722

Acc

rued

exp

ense

sU

ang

muk

a pe

njua

lan

907

--

-90

790

7A

dvan

ces

from

cus

tom

ers

Uta

ng b

ank

jang

ka p

anja

ng46

.238

35.9

8667

.915

-15

0.13

915

0.13

9Lo

ng-te

rm b

ank

loan

s

Uta

ng p

embi

ayaa

n ko

nsum

en1.

229

1.37

9-

-2.

608

2.60

8C

onsu

mer

fina

ncin

g pa

yabl

esU

tang

sew

ape

mbi

ayaa

n8.

355

2.48

822

-10

.865

10.8

65Fi

nanc

e le

ase

paya

bles

Jum

lah

liabi

litas

1.18

5.34

539

.853

67.9

37-

1.29

3.13

51.

293.

135

Tota

l lia

bilit

ies

31D

esem

ber 2

014/

Dec

embe

r 31,

201

4(D

isaj

ikan

kem

bali,

Cat

atan

4/A

s re

stat

ed, N

ote

4)<=

1 ta

hun/

<= 1

yea

r1-

2 ta

hun/

1-2

year

s2-

5 ta

hun/

3-5

year

s>=

5 ta

hun/

>= 5

yea

rsJu

mla

h/To

tal

Nila

i waj

ar/

Fair

valu

e

Liab

ilita

sLi

abili

ties

Uta

ng b

ank

jang

ka p

ende

k54

6.50

4-

--

546.

504

546.

504

Sho

rt-te

rm b

ank

loan

sU

tang

usa

haTr

ade

paya

bles

Pih

ak k

etig

a26

8.96

8-

--

268.

968

268.

968

Third

par

ties

Pih

ak b

erel

asi

157.

227

--

-15

7.22

715

7.22

7R

elat

ed p

artie

sU

tang

lain

-lain

8.

481

--

-8.

481

8.48

1O

ther

pay

able

sB

eban

mas

ih h

arus

dib

ayar

50.0

48-

--

50.0

4850

.048

Acc

rued

exp

ense

sU

ang

muk

a pe

njua

lan

1.27

8-

--

1.27

81.

278

Adv

ance

sfro

m c

usto

mer

sU

tang

ban

kja

ngka

pan

jang

30.6

5627

.864

33.7

2763

792

.884

92.8

84Lo

ng-te

rm b

ank

loan

s

Uta

ng p

embi

ayaa

n ko

nsum

en2.

343

690

596

457

4.08

64.

086

Con

sum

er fi

nanc

ing

paya

bles

Uta

ng s

ewa

pem

biay

aan

8.70

45.

868

600

-15

.172

15.1

72Fi

nanc

e le

ase

paya

bles

Jum

lah

liabi

litas

1.07

4.20

934

.422

34.9

231.

094

1.14

4.64

81.

144.

648

Tota

l lia

bilit

ies

— F-138 —

The

orig

inal

con

solid

ated

fina

ncia

l sta

tem

ents

incl

uded

he

rein

are

in In

done

sian

lang

uage

PT K

INO

IND

ON

ESIA

Tbk

DA

N E

NTI

TAS

AN

AK

CA

TATA

N A

TAS

LAPO

RA

NK

EUA

NG

AN

KO

NSO

LID

ASI

AN

Perio

deEn

am B

ulan

yang

Ber

akhi

r pad

a Ta

ngga

l 30

Jun

i 201

5 da

n Ta

hun

yang

Ber

akhi

r pad

a Ta

ngga

l-tan

ggal

31 D

esem

ber 2

014,

201

3 da

n 20

12 s

erta

Per

iode

Ena

m B

ulan

yan

g B

erak

hir p

ada

Tang

gal 3

0 Ju

ni 2

014

(Tid

ak D

iaud

it)

(Din

yata

kan

dala

m ju

taan

Rup

iah,

kec

uali

diny

atak

an la

in)

PT K

INO

IND

ON

ESIA

Tbk

AN

D S

UB

SID

IAR

IES

NO

TES

TO T

HE

CO

NSO

LID

ATE

D F

INA

NC

IAL

STA

TEM

ENTS

Six-

Mon

th P

erio

d En

ded

June

30,

201

5 an

d Ye

ars

Ende

d D

ecem

ber 3

1, 2

014,

201

3 an

d 20

12 a

nd

Six-

Mon

th P

erio

d En

ded

June

30,

201

4 (U

naud

ited)

(Exp

ress

ed in

mill

ion

Rup

iah,

unl

ess

othe

rwis

e st

ated

)

125

31.

MAN

AJEM

EN R

ISIK

O K

EUAN

GAN

(lan

juta

n)31

.FI

NA

NC

IAL

RIS

K M

AN

AG

EMEN

T (c

ontin

ued)

RIS

IKO

LIK

UID

ITAS

(lanj

utan

)LI

QU

IDIT

Y R

ISK

(con

tinue

d)

31D

esem

ber 2

013/

Dec

embe

r 31,

201

3(D

isaj

ikan

kem

bali,

Cat

atan

4/A

s re

stat

ed, N

ote

4)<=

1 ta

hun/

<= 1

yea

r1-

2 ta

hun/

1-2

year

s2-

5 ta

hun/

3-5

year

s>=

5 ta

hun/

>= 5

yea

rsJu

mla

h/To

tal

Nila

i waj

ar/

Fair

valu

e

Liab

ilita

sLi

abili

ties

Uta

ng b

ank

jang

ka p

ende

k26

5.20

1-

--

265.

201

265.

201

Sho

rt-te

rm b

ank

loan

sU

tang

usa

haTr

ade

paya

bles

Pih

ak k

etig

a29

7.78

8-

--

297.

788

297.

788

Third

par

ties

Pih

ak b

erel

asi

120.

611

--

-12

0.61

112

0.61

1R

elat

ed p

artie

sU

tang

div

iden

7.87

4-

--

7.87

47.

874

Div

iden

d pa

yabl

esU

tang

lain

-lain

7.

452

--

-7.

452

7.45

2O

ther

pay

able

sB

eban

mas

ih h

arus

dib

ayar

29.4

45-

--

29.4

4529

.445

Acc

rued

exp

ense

sU

ang

muk

a pe

njua

lan

2.06

5-

--

2.06

52.

065

Adv

ance

sfro

m c

usto

mer

sU

tang

ban

kja

ngka

pan

jang

31.2

2319

.540

20.2

151.

973

72.9

5172

.951

Long

-term

ban

k lo

ans

Uta

ng p

embi

ayaa

n ko

nsum

en5.

837

1.80

026

914

7.92

07.

920

Con

sum

er fi

nanc

ing

paya

bles

Uta

ng s

ewa

pem

biay

aan

6.22

96.

381

3.51

4-

16.1

2416

.124

Fina

nce

leas

e pa

yabl

esU

tang

pih

ak b

erel

asi

--

-11

.117

11.1

1711

.117

Due

to re

late

d pa

rties

Jum

lah

liabi

litas

773.

725

27.7

2123

.998

13.1

0483

8.54

883

8.54

8To

tal l

iabi

litie

s

31D

esem

ber 2

012/

Dec

embe

r 31,

201

2(D

isaj

ikan

kem

bali,

Cat

atan

4/A

s re

stat

ed, N

ote

4)<=

1 ta

hun/

<= 1

yea

r1-

2 ta

hun/

1-2

year

s2-

5 ta

hun/

2-5

year

s>=

5 ta

hun/

>= 5

yea

rsJu

mla

h/To

tal

Nila

i waj

ar/

Fair

valu

e

Liab

ilita

sLi

abili

ties

Uta

ng b

ank

jang

ka p

ende

k25

3.47

5-

--

253.

475

253.

475

Sho

rt-te

rm b

ank

loan

sU

tang

usa

haTr

ade

paya

bles

Pih

ak k

etig

a22

8.51

8-

--

228.

518

228.

518

Third

par

ties

Pih

ak b

erel

asi

44.9

87-

--

44.9

8744

.987

Rel

ated

par

ties

Uta

ng d

ivid

en8.

319

--

-8.

319

8.31

9D

ivid

end

paya

bles

Beb

anm

asih

har

us d

ibay

ar6.

946

--

-6.

946

6.94

6A

ccru

ed e

xpen

ses

Uan

g m

uka

penj

uala

n46

4-

--

464

464

Adv

ance

sfro

m c

usto

mer

sU

tang

ban

kja

ngka

pan

jang

43.7

3030

.236

30.3

253.

513

107.

804

107.

804

Long

-term

ban

k lo

ans

Uta

ng p

embi

ayaa

n ko

nsum

en6.

847

4.11

480

2-

11.7

6311

.763

Con

sum

er fi

nanc

ing

paya

bles

Uta

ng p

ihak

ber

elas

i-

--

8.08

88.

088

8.08

8D

ueto

rela

ted

parti

esJu

mla

h lia

bilit

as59

3.28

634

.350

31.1

2711

.601

670.

364

670.

364

Tota

l lia

bilit

ies

— F-139 —

The

orig

inal

con

solid

ated

fina

ncia

l sta

tem

ents

incl

uded

he

rein

are

in In

done

sian

lang

uage

PT K

INO

IND

ON

ESIA

Tbk

DA

N E

NTI

TAS

AN

AK

CA

TATA

N A

TAS

LAPO

RA

NK

EUA

NG

AN

KO

NSO

LID

ASI

AN

Perio

deEn

am B

ulan

yang

Ber

akhi

r pad

a Ta

ngga

l 30

Jun

i 201

5 da

n Ta

hun

yang

Ber

akhi

r pad

a Ta

ngga

l-tan

ggal

31 D

esem

ber 2

014,

201

3 da

n 20

12 s

erta

Per

iode

Ena

m B

ulan

yan

g B

erak

hir p

ada

Tang

gal 3

0 Ju

ni 2

014

(Tid

ak D

iaud

it)

(Din

yata

kan

dala

m ju

taan

Rup

iah,

kec

uali

diny

atak

an la

in)

PT K

INO

IND

ON

ESIA

Tbk

AN

D S

UB

SID

IAR

IES

NO

TES

TO T

HE

CO

NSO

LID

ATE

D F

INA

NC

IAL

STA

TEM

ENTS

Six-

Mon

th P

erio

d En

ded

June

30,

201

5 an

d Ye

ars

Ende

d D

ecem

ber 3

1, 2

014,

201

3 an

d 20

12 a

nd

Six-

Mon

th P

erio

d En

ded

June

30,

201

4 (U

naud

ited)

(Exp

ress

ed in

mill

ion

Rup

iah,

unl

ess

othe

rwis

e st

ated

)

126

31.

MAN

AJEM

EN R

ISIK

O K

EUAN

GAN

(lan

juta

n)31

.FI

NA

NC

IAL

RIS

K M

AN

AG

EMEN

T (c

ontin

ued)

RIS

IKO

LIK

UID

ITAS

(lanj

utan

)LI

QU

IDIT

Y R

ISK

(con

tinue

d)

1 Ja

nuar

i 201

2/31

Des

embe

r 201

1/Ja

nuar

y 1,

201

2/D

ecem

ber 3

1, 2

011

(Dis

ajik

an k

emba

li, C

atat

an 4

/As

resa

tate

d, N

ote

4)<=

1 ta

hun/

<= 1

yea

r1-

2 ta

hun/

1-2

year

s2-

5 ta

hun/

2-5

year

s>=

5 ta

hun/

>= 5

yea

rsJu

mla

h/To

tal

Nila

i waj

ar/

Fair

valu

e

Liab

ilita

sLi

abili

ties

Uta

ng b

ank

jang

ka p

ende

k18

8.11

4-

--

188.

114

188.

114

Sho

rt-te

rm b

ank

loan

sU

tang

usa

haTr

ade

paya

bles

Pih

ak k

etig

a17

9.01

5-

--

179.

015

179.

015

Third

par

ties

Pih

ak b

erel

asi

41.7

32-

--

41.7

3241

.732

Rel

ated

par

ties

Uta

ng d

ivid

en6.

350

--

-6.

350

6.35

0D

ivid

end

paya

bles

Beb

anm

asih

har

us d

ibay

ar11

.074

--

-11

.074

11.0

74A

ccru

edex

pens

esU

ang

muk

a pe

njua

lan

201

--

-20

120

1A

dvan

ces

from

cus

tom

ers

Uta

ng b

ank

jang

ka p

anja

ng30

.160

56.2

2515

.019

-10

1.40

410

1.40

4Lo

ng-te

rm b

ank

loan

sU

tang

pem

biay

aan

kons

umen

5.65

23.

231

1.01

4-

9.89

79.

897

Con

sum

er fi

nanc

ing

paya

bles

Uta

ng p

ihak

ber

elas

i-

--

8.08

88.

088

8.08

8D

ueto

rela

ted

parti

esJu

mla

h lia

bilit

as46

2.29

859

.456

16.0

338.

088

545.

875

545.

875

Tota

l lia

bilit

ies

— F-140 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

127

31. MANAJEMEN RISIKO KEUANGAN (lanjutan) 31. FINANCIAL RISK MANAGEMENT (continued)

PENGELOLAAN MODAL CAPITAL MANAGEMENT

Tujuan utama dari pengelolaan modal Grup adalah untuk memastikan bahwa pemeliharaan peringkat kredit yang tinggi dan rasio modal yang sehat dalam rangka mendukung bisnis dan memaksimalkan nilai pemegang saham. Grup tidak diwajibkan untuk memenuhi syarat-syarat modal tertentu.

The primary objective of the Group’s capital management is to ensure credit rating and healthy capital ratios are maintained in order to support its business and maximize shareholder value. The Group is not required to meet any capital requirements.

Manajemen Grup mengelola struktur permodalan dan melakukan penyesuaian, berdasarkan perubahan kondisi ekonomi. Untuk memelihara dan menyesuaikan struktur permodalan, Grup dapat memilih menyesuaikan pembayaran dividen kepada pemegang saham atau menerbitkan saham baru. Tidak ada perubahan yang dibuat dalam tujuan, kebijakan, atau proses selama periode yang disajikan.

Group’s management manages its capital structure andmake adjustments, based on changes in economic conditions. To maintain and adjust the capital structure, the Group may adjust the dividend payment to shareholders orissue new shares. No changes were made in the objectives, policies or processes during the periods presented.

Kebijakan Grup adalah untuk menjaga rasio modal yang sehat dalam rangka untuk mengamankan pembiayaan pada biaya yang wajar.

Group’s policy is to maintain healthy capital ratios in order to secure financing at a reasonable cost.

Sebagaimana praktik yang berlaku umum, Grup mengevaluasi struktur permodalan melalui rasio utang terhadap modal (gearing ratio) yang dihitung melalui pembagian antara utang bersih dengan modal. Utang bersih adalah jumlah liabilitas sebagaimana disajikan di dalam laporan posisi keuangan konsolidasian dikurangi dengan jumlah kas dan bank. Sedangkan modal meliputi seluruh komponen ekuitas dalam laporan posisi keuangan konsolidasian Pada tanggal-tanggal 30 Juni 2015 dan 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011, perhitungan rasio adalah sebagai berikut:

As generally accepted practice, the Group evaluates its capital structure through debt-to-equity ratio (gearing ratio), which is calculated as net debt divided by total capital. Net debt is total liabilities as presented in the consolidated statements of financial position less cash and banks.Whereas, total capital is all components of equity in the consolidated statements of financial position. As of June 30, 2015 and December 31, 2014, 2013, 2012 dan January 1, 2012/December 31, 2011, the ratio calculation are as follows:

1 Januari 2012/ 31 Desember 2011/January 31 Desember/December 31, 1, 2012/ December 31, 30 Juni 2015/ 2014 2013 2012 2011 June 30, 2015 (Disajikan kembali, Catatan 4/As restated, Note 4) Jumlah liabilitas 1.386.960 1.200.997 863.788 694.143 567.888 Total liabilitiesDikurangi kas Less cash and dan bank (48.939) (44.354) (62.869) (9.465) (6.929) banks Liabilitas bersih 1.338.021 1.156.643 800.919 684.678 560.959 Net debtJumlah ekuitas 827.821 662.384 416.192 292.844 94.551 Total equity Rasio liabilitas terhadap modal 1,62 1,75 1,92 2,34 5,93 Debt-to-equity ratio

— F-141 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

128

32. ASET DAN LIABILITAS KEUANGAN 32. FINANCIAL ASSETS AND LIABILITIES

PSAK No. 60, “Instrumen Keuangan: Pengungkapan” mensyaratkan pengungkapan atas pengukuran nilai wajar dengan tingkat hirarki nilai wajar sebagai berikut:

PSAK No. 60 “Financial Instruments: Disclosures” requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

a. Tingkat 1 : Nilai wajar diukur berdasarkan pada harga kuotasi (tidak disesuaikan) dalam pasar aktif untuk aset atau liabilitas sejenis.

a. Level 1 : Fair values are measured based on quoted prices (unadjusted) in active markets for identical assets or liabilities.

b. Tingkat 2 : Nilai wajar diukur berdasarkan teknik-teknik valuasi, dalam hal seluruh input yang mempunyai efek yang signifikan atas nilai wajar dapat diobservasi baik secara langsung maupun tidak langsung.

b. Level 2 : Fair values are measured based on valuation techniques for which all inputs which have a significant effect on the recorded fair values are observable either directly or indirectly.

c. Tingkat 3 : Nilai wajar diukur berdasarkan teknik-teknik valuasi, dalam hal seluruh input yang mempunyai efek yang signifikan atas nilai wajar tidak dapat diobservasi baik secara langsung maupun tidak langsung.

c. Level 3 : Fair values are measured based on valuation techniques for which inputs which have a significant effect on the recorded fair value are not based on observable market data.

Tabel di bawah ini adalah perbandingan nilai tercatat dan nilai wajar instrumen keuangan Grup yang dicatat di laporan keuangan konsolidasian:

The table below is a comparison of the carrying amount and fair value of the Group’s financial instruments recorded in the consolidated financial statements:

30 Juni 2015/June 30, 2015Nilai Tercatat/Carrying Value

Nilai Wajar/Fair Value

ASET KEUANGAN FINANCIAL ASSETSAset keuangan yang

diklasifikasikan sebagaipinjaman dan piutang

Financial assetsclassified as loans and

receivablesKas dan bank 48.939 48.939 Cash and banksPiutang usaha - pihak ketiga 752.277 752.277 Trade receivables - third partiesPiutang lain-lain 5.817 5.817 Other receivablesDeposito yang dibatasi

penggunaannya 38.604 38.604 Restricted depositsAset tidak lancar lain -

uang jaminan 3.057 3.057Other non-current assets- refundable deposits

Jumlah Aset Keuangan 848.694 848.694 Total Financial Assets

LIABILITAS KEUANGAN FINANCIAL LIABILITIESLiabilitas keuangan yang

dicatat berdasarkan biaya perolehan diamortisasi

Financial liabilitiesmeasured at

amortized costsUtang bank jangka pendek 586.205 586.205 Short-term bank loansUtang usaha Trade payables

Pihak ketiga 334.617 334.617 Third partiesPihak berelasi 114.851 114.851 Related parties

Utang lain-lain 7.221 7.221 Other payablesBeban masih harus dibayar 85.722 85.722 Accrued expensesUang muka penjualan 907 907 Advances from customersUtang bank jangka panjang 150.139 150.139 Long-term bank loansUtang pembiayaan konsumen 2.608 2.608 Consumer financing payablesUtang sewa pembiayaan 10.865 10.865 Finance lease payablesJumlah Liabilitas Keuangan 1.293.135 1.293.135 Total Financial Liabilities

— F-142 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

129

32. ASET DAN LIABILITAS KEUANGAN (lanjutan) 32. FINANCIAL ASSETS AND LIABILITIES (continued)

31 Desember 2014/December 31, 2014(Disajikan kembali, Catatan 4/

As restated, Note 4)Nilai Tercatat/Carrying Value

Nilai Wajar/Fair Value

ASET KEUANGAN FINANCIAL ASSETSAset keuangan yang

diklasifikasikan sebagaipinjaman dan piutang

Financial assetsclassified as loans and

receivablesKas dan bank 44.354 44.354 Cash and banksPiutang usaha - pihak ketiga 445.839 445.839 Trade receivables - third partiesPiutang lain-lain 6.793 6.793 Other receivablesDeposito yang dibatasi

penggunaannya 31.524 31.524 Restricted depositsAset tidak lancar lain -

uang jaminan 2.501 2.501Other non-current assets- refundable deposits

Jumlah Aset Keuangan 531.011 531.011 Total Financial Assets

LIABILITAS KEUANGAN FINANCIAL LIABILITIESLiabilitas keuangan yang

dicatat berdasarkan biaya perolehan diamortisasi

Financial liabilitiesmeasured at

amortized costsUtang bank jangka pendek 546.504 546.504 Short-term bank loansUtang usaha Trade payables

Pihak ketiga 268.968 268.968 Third partiesPihak berelasi 157.227 157.227 Related parties

Utang lain-lain 8.481 8.481 Other payablesBeban masih harus dibayar 50.048 50.048 Accrued expensesUang muka penjualan 1.278 1.278 Advances from customersUtang bank jangka panjang 92.884 92.884 Long-term bank loansUtang pembiayaan konsumen 4.086 4.086 Consumer financing payablesUtang sewa pembiayaan 15.172 15.172 Finance lease payablesJumlah Liabilitas Keuangan 1.144.648 1.144.648 Total Financial Liabilities

31 Desember 2013/December 31, 2013(Disajikan kembali, Catatan 4/

As restated, Note 4)Nilai Tercatat/Carrying Value

Nilai Wajar/Fair Value

ASET KEUANGAN FINANCIAL ASSETSAset keuangan yang

diklasifikasikan sebagaipinjaman dan piutang

Financial assetsclassified as loans and

receivablesKas dan bank 62.869 62.869 Cash and banksPiutang usaha - pihak ketiga 301.937 301.937 Trade receivables - third partiesPiutang lain-lain 4.470 4.470 Other receivablesDeposito yang dibatasi

penggunaannya 10.453 10.453 Restricted depositsAset tidak lancar lain -

uang jaminan 1.430 1.430Other non-current assets- refundable deposits

Jumlah Aset Keuangan 381.159 381.159 Total Financial Assets

— F-143 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

130

32. ASET DAN LIABILITAS KEUANGAN (lanjutan) 32. FINANCIAL ASSETS AND LIABILITIES (continued)

31 Desember 2013/December 31, 2013(Disajikan kembali, Catatan 4/

As restated, Note 4)Nilai Tercatat/Carrying Value

Nilai Wajar/Fair Value

LIABILITAS KEUANGAN FINANCIAL LIABILITIESLiabilitas keuangan yang

dicatat berdasarkan biaya perolehan diamortisasi

Financial liabilitiesmeasured at

amortized costsUtang bank jangka pendek 265.201 265.201 Short-term bank loansUtang usaha Trade payables

Pihak ketiga 297.788 297.788 Third partiesPihak berelasi 120.611 120.611 Related parties

Utang dividen 7.874 7.874 Dividend payablesUtang lain-lain 7.452 7.452 Other payablesBeban masih harus dibayar 29.445 29.445 Accrued expensesUang muka penjualan 2.065 2.065 Advances from customersUtang bank jangka panjang 72.951 72.951 Long-term bank loansUtang pembiayaan konsumen 7.920 7.920 Consumer financing payablesUtang sewa pembiayaan 16.124 16.124 Finance lease payablesUtang pihak berelasi 11.117 11.117 Due to related parties

Jumlah Liabilitas Keuangan 838.548 838.548 Total Financial Liabilities

31 Desember 2012/December 31, 2012(Disajikan kembali, Catatan 4/

As restated, Note 4)Nilai Tercatat/Carrying Value

Nilai Wajar/Fair Value

ASET KEUANGAN FINANCIAL ASSETSAset keuangan yang

diklasifikasikan sebagai pinjaman dan piutang

Financial assetsclassified as loans and

receivablesKas dan bank 9.465 9.465 Cash and banksPiutang usaha Trade receivables

Pihak ketiga 248.117 248.117 Third partiesPihak berelasi 33.750 33.750 Related parties

Piutang lain-lain 1.878 1.878 Other receivablesDeposito yang dibatasi

penggunaannya 11.688 11.688 Restricted depositsPiutang pihak berelasi 4.221 4.221 Due from related partiesAset tidak lancar lain -

uang jaminan 726 726Other non-current assets- refundable deposits

Jumlah Aset Keuangan 309.845 309.845 Total Financial Assets

LIABILITAS KEUANGAN FINANCIAL LIABILITIESLiabilitas keuangan yang

dicatat berdasarkan biaya perolehan diamortisasi

Financial liabilitiesmeasured at

amortized costsUtang bank jangka pendek 253.475 253.475 Short-term bank loansUtang usaha Trade payables

Pihak ketiga 228.518 228.518 Third partiesPihak berelasi 44.987 44.987 Related parties

Utang dividen 8.319 8.319 Dividend payablesBeban masih

harus dibayar 6.946 6.946 Accrued expenses

— F-144 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

131

32. ASET DAN LIABILITAS KEUANGAN (lanjutan) 32. FINANCIAL ASSETS AND LIABILITIES (continued)

31 Desember 2012/December 31, 2012(Disajikan kembali, Catatan 4/

As restated, Note 4)Nilai Tercatat/Carrying Value

Nilai Wajar/Fair Value

LIABILITAS KEUANGAN (lanjutan)

FINANCIAL LIABILITIES(continued)

Uang muka penjualan 464 464 Advances from customersUtang bank jangka panjang 107.804 107.804 Long-term bank loansUtang pembiayaan konsumen 11.763 11.763 Consumer financing payablesUtang pihak berelasi 8.088 8.088 Due to related parties

Jumlah Liabilitas Keuangan 670.364 670.364 Total Financial Liabilities

1 Januari 2012/31 Desember 2011/January 1, 2012/December 31, 2011

(Disajikan kembali, Catatan 4/As restated, Note 4)

Nilai Tercatat/Carrying Value

Nilai Wajar/Fair Value

ASET KEUANGAN FINANCIAL ASSETSAset keuangan yang

diklasifikasikan sebagai pinjaman dan piutang

Financial assetsclassified as loans and

receivablesKas dan bank 6.929 6.929 Cash and banksPiutang usaha Trade receivables

Pihak ketiga 211.250 211.250 Third partiesPihak berelasi 36.020 36.020 Related parties

Piutang lain-lain 1.879 1.879 Other receivablesDeposito yang dibatasi

penggunaannya 791 791 Restricted depositsPiutang pihak berelasi 2.135 2.135 Due from related partiesAset tidak lancar lain -

uang jaminan 692 692Other non-current assets- refundable deposits

Jumlah Aset Keuangan 259.696 259.696 Total Financial Assets

LIABILITAS KEUANGAN FINANCIAL LIABILITIESLiabilitas keuangan yang

dicatat berdasarkan biaya perolehan diamortisasi

Financial liabilitiesmeasured at

amortized costsUtang bank jangka pendek 188.114 188.114 Short-term bank loansUtang usaha Trade payables

Pihak ketiga 179.015 179.015 Third partiesPihak berelasi 41.732 41.732 Related parties

Utang dividen 6.350 6.350 Dividend payablesBeban masih

harus dibayar 11.074 11.074 Accrued expensesUang muka penjualan 201 201 Advances from customersUtang bank jangka panjang 101.404 101.404 Long-term bank loansUtang pembiayaan konsumen 9.897 9.897 Consumer financing payablesUtang pihak berelasi 8.088 8.088 Due to related parties

Jumlah Liabilitas Keuangan 545.875 545.875 Total Financial Liabilities

— F-145 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

132

32. ASET DAN LIABILITAS KEUANGAN (lanjutan) 32. FINANCIAL ASSETS AND LIABILITIES (continued)

Berikut metode dan asumsi yang digunakan untuk mengestimasi nilai wajar:

The following methods and assumptions are used to estimate the fair value:

1. Kas dan bank, piutang usaha pihak ketiga dan pihak berelasi, piutang lain-lain, utang bank jangka pendek, utang usaha pihak ketiga dan pihak berelasi, utang dividen, utang lain-lain, beban masih harus dibayar,uang muka penjualan mendekati nilai tercatatnya karena bersifat jangka pendek yang akan jatuh tempo dalam waktu 12 bulan.

1. Cash and banks, trade receivables third parties and related parties, other receivables, short-term bank loans, trade payables third parties and related parties,other payables, dividend payables, accrued expenses,advances from customers approximate at their carrying values due to the short term nature that will be due within 12 months.

2. Nilai tercatat deposito yang dibatasi penggunaannya, utang bank jangka panjang, utang pembiayaan konsumen dan utang sewa pembiayaan mendekati nilai wajarnya karena suku bunga mengambang dari instrumen keuangan ini tergantung penyesuaian oleh pihak bank dan pembiayaan.

2. The carrying amount of restricted deposits, long-term bank loans, consumer financing payables, and financelease payables approximate at their fair values because of their interest rate floated from financial instruments is depend on adjustment by the banks and financial institutions.

3. Nilai wajar uang jaminan, piutang pihak berelasi dan utang pihak berelasi dicatat sebesar biaya historis karena nilai wajarnya tidak dapat diukur secara handal. Tidak praktis untuk mengestimasi nilai wajar aset tersebut karena tidak ada jangka waktu penerimaan/pembayaran yang pasti walaupun tidak diharapkan untuk diselesaikan dalam jangka waktu 12 bulan setelah tanggal laporan posisi keuangankonsolidasian.

3. Fair value of refundable deposits, due from related parties and due to related parties are carried at historical cost because fair value can not be measured reliably. It is not practical to estimate the fair value of asset because there is no definite period of receipt/payment, although it is not expected to be completed within 12 months after the date of theconsolidated statements of financial position.

33. PENGUKURAN NILAI WAJAR 33. FAIR VALUE MEASUREMENT

Tabel berikut menyajikan aset yang diukur dengan menggunakan nilai wajar adalah sebagai berikut:

The following table presents the asset measured using the fair value is as follows:

30 Juni 2015/June 30, 2015

Pengukuran nilai wajar menggunakan:/ Fair value measurement using:

Input signifikan Input signifikan Harga kuotasian yang dapat di yang tidak dapat dalam pasar aktif/ observasi diobservasi/ (Level 1)/ (Level 2)/ Significant Quoted prices Significant unobservable Nilai Tercatat/ in active markets observable inputs inputs Carrying Values (Level 1) (Level 2) (Level 3)

Aset yang nilai Assets for which fair wajarnya values are disajikan : disclosed : Aset tetap - tanah 537.926 - 537.926 - Fixed assets - land

— F-146 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

133

33. PENGUKURAN NILAI WAJAR (lanjutan) 33. FAIR VALUE MEASUREMENT (continued)

31 Desember 2014/December 31, 2014

Pengukuran nilai wajar menggunakan:/ Fair value measurement using:

Input signifikan Input signifikan Harga kuotasian yang dapat di yang tidak dapat dalam pasar aktif/ observasi diobservasi/ (Level 1)/ (Level 2)/ Significant Quoted prices Significant unobservable Nilai Tercatat/ in active markets observable inputs inputs Carrying Values (Level 1) (Level 2) (Level 3)

Aset yang nilai Assets for which fair wajarnya values are disajikan : disclosed : Aset tetap - tanah 513.800 - 513.800 - Fixed assets - land

31 Desember 2013/December 31, 2013

Pengukuran nilai wajar menggunakan:/ Fair value measurement using:

Input signifikan Input signifikan Harga kuotasian yang dapat di yang tidak dapat dalam pasar aktif/ observasi diobservasi/ (Level 1)/ (Level 2)/ Significant Quoted prices Significant unobservable Nilai Tercatat/ in active markets observable inputs inputs Carrying Values (Level 1) (Level 2) (Level 3)

Aset yang nilai Assets for which fair wajarnya values are disajikan : disclosed : Aset tetap - tanah 397.271 - 397.271 - Fixed assets - land

31 Desember 2012/December 31, 2012

Pengukuran nilai wajar menggunakan:/ Fair value measurement using:

Input signifikan Input signifikan Harga kuotasian yang dapat di yang tidak dapat dalam pasar aktif/ observasi diobservasi/ (Level 1)/ (Level 2)/ Significant Quoted prices Significant unobservable Nilai Tercatat/ in active markets observable inputs inputs Carrying Values (Level 1) (Level 2) (Level 3)

Aset yang nilai Assets for which fair wajarnya values are disajikan : disclosed : Aset tetap - tanah 234.606 - 234.606 - Fixed assets - land

— F-147 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

134

33. PENGUKURAN NILAI WAJAR (lanjutan) 33. FAIR VALUE MEASUREMENT (continued)

Keuntungan dan kerugian yang disajikan ke dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian yang disajikan dalam penghasilan keuangan dan nonkeuangan adalah sebagai berikut:

Gains and losses are presented in the consolidated statements of profit or loss and other comprehensive income presented in the financial income and nonfinancial income is as follows:

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated, Note 4) Keuntungan yang belum terealisasi untuk periode/ Unrealized gain for current tahun berjalan 24.126 - 111.376 156.307 179.764 periods/years

Teknik penilaian Valuation techniques

Tanah pada tanggal 30 Juni 2015 dan 31 Desember 2014 dinyatakan berdasarkan nilai wajarnya masing-masing sebesar Rp 537.926 dan Rp 513.800 yang ditentukan berdasarkan laporan penilaian independen Kantor Jasa Penilai Publik Susan Widjojo & Rekan, penilai independen, yang ditandatangani oleh Susan Widjojo, sesuai laporan nya No. 466/SWR/APP-C/O/X/15 tertanggal 8 Oktober 2015 dan No. 053 dan 054/SWR/ADF/III/15 tertanggal 25 Maret 2015, masing-masing dengan menggunakan metode pendekatan data pasar.

Land as of June 30, 2015 and December 31, 2014 are recorded using fair value amounted to Rp 537,926 and Rp 513,800, respectively, determined based on independent appraisal report of Kantor Jasa Penilai Publik Susan Widjojo & Rekan, an independent appraisers, which was signed by Susan Widjojo, according to their report No. 466/SWR/APP-C/O/X/15 dated October 8, 2015, andNo. 053 and 054/SWR/ADF/III/15 dated March 25, 2015,with the valuation method used cost approach,respectively.

Sedangkan tanah pada tanggal 31 Desember 2013 dan 2012 dinyatakan berdasarkan nilai wajarnya masing-masing sebesar Rp 397.271 dan Rp 234.606, yang ditentukan berdasarkan laporan penilaian independen Kantor Jasa Penilai Publik Budi, Edi, Saptono & Rekan, penilai independen, yang ditandatangani oleh Jeffry l. Benyamin, ST., SE., MAPPI, sesuai laporannya No. 2014dan 2015/JIB-BEST/L-PA/VI/14 tertanggal 3 dan 7 April 2014 dan No. 2007 dan 2008/JIB-BEST/L-PA/II/13tertanggal 26 dan 27 Februari 2013, masing-masingdengan menggunakan penilaian metode pendekatan data pasar.

While, land as of December 31, 2013 and 2012 are recorded based on their fair value amounted to Rp 397,271 and Rp 234,606, respectively, determined based on independent appraisal report of Kantor Jasa Penilai Publik Budi, Edi, Saptono & Rekan, independent appraisers, which was signed by Jeffry l. Benyamin, ST., SE., MAPPI,according to their report No. 2014 and 2015/JIB-BEST/L-PA/VI/14 dated 3 and 7 April 2014 and No. 2007 and2008/JIB-BEST/L-PA/II/13 dated February 26 and 27, 2013, with the valuation method used market approach, respectively.

— F-148 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

135

34. INFORMASI SEGMEN 34. SEGMENT INFORMATION

Grup mengelompokkan dan mengevaluasi usahanya secara jenis produk yang diproduksi, yaitu terdiri dari produk perawatan tubuh, minuman, makanan, farmasi, dan produk lainnya.

The Group manages and evaluates its operations based on type of products that produced that consists of personal care, beverages, foods, pharmaceutical, and other products.

Tabel berikut ini menyajikan informasi segmen mengenai hasil operasi Grup:

The following table provides operating segment information regarding the operating results of the Group:

Laporan Laba Rugi dan Penghasilan Komprehensif Lain Konsolidasian

Consolidated Statements of Profit or Loss and Other Comprehensive Income

30 Juni 2015/June 30, 2015 Perawatan Tubuh/ Personal Minuman/ Makanan/ Farmasi/ Jumlah/ Care Beverages Foods Pharmacutical Total PENJUALAN 877.622 632.528 234.099 2.378 1.746.627 SALES BEBAN POKOK PENJUALAN 402.343 393.392 214.788 1.708 1.012.231 COST OF SALES LABA KOTOR 475.279 239.136 19.311 670 734.396 GROSS PROFIT Beban yang tidak dapat dialokasikan: Unallocated expenses:Beban penjualan (375.249) Selling expensesBeban umum dan administrasi (128.107) General and administrative expensesBeban bunga (42.853) Interest expensesRugi selisih kurs - bersih (5.145) Loss on foreign exchange - netBagian atas rugi Entitas Asosiasi (5.109) Share in losses in AssociatesBeban administrasi bank (1.770) Bank administration expensesLaba penjualan aset tetap 1.347 Gain on sale of fixed assetsLaba penjualan barang bekas 999 Gain on sale of scrap Pendapatan bunga 977 Interest incomeLain-lain - bersih 7.053 Others - net LABA SEBELUM BEBAN PAJAK INCOME BEFORE INCOME PENGHASILAN 186.539 TAX EXPENSES BEBAN PAJAK PENGHASILAN (45.203) INCOME TAX EXPENSES LABA PERIODE BERJALAN CURRENT PERIOD INCOME SEBELUM PENYESUAIAN BEFORE EFFECT OF

PROFORMA 141.336 PROFORMA ADJUSTMENT Dampak penyesuaian proforma atas Effect of proforma adjustment on atas laba periode berjalan - current period income LABA PERIODE BERJALAN 141.336 CURRENT PERIOD INCOME PENGHASILAN OTHER COMPEHENSIVE KOMPREHENSIF LAIN 24.101 INCOME LABA KOMPREHENSIF SEBELUM COMPREHENSIVE INCOME DAMPAK PENYESUAIAN BEFORE EFFECT OF PROFORMA ATAS PROFORMA ADJUSTMENT

PENGHASILAN KOMPREHENSIF OTHER COMPREHENSIVE LAIN 165.437 INCOME Dampak penyesuaian proforma Effect of proforma adjustment

atas penghasilan on other comprehensive komprehensif lain - income LABA KOMPREHENSIF 165.437 COMPREHENSIVE INCOME

— F-149 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

136

34. INFORMASI SEGMEN (lanjutan) 34. SEGMENT INFORMATION (continued)

Laporan Laba Rugi dan Penghasilan Komprehensif Lain Konsolidasian (lanjutan)

Consolidated Statements of Profit or Loss and Other Comprehensive Income (continued)

30 Juni 2014/June 30, 2014 Perawatan Tubuh/ Personal Minuman/ Makanan/ Farmasi/ Jumlah/ Care Beverages Foods Pharmacutical Total PENJUALAN 713.236 548.549 329.632 3.845 1.595.262 SALES BEBAN POKOK PENJUALAN 376.967 355.364 303.544 2.557 1.038.432 COST OF SALES LABA KOTOR 336.269 193.185 26.088 1.288 556.830 GROSS PROFIT Beban yang tidak dapat dialokasikan: Unallocated expenses:Beban penjualan (356.946) Selling expensesBeban umum dan administrasi (107.016) General and administrative expensesBeban bunga (24.402) Interest expensesBagian atas rugi Entitas Asosiasi (2.918) Share in losses in AssociatesRugi selisih kurs - bersih (1.707) Loss on foreign exchange - netBeban administrasi bank (1.234) Bank administration expensesLaba penjualan aset tetap 1.183 Gain on sale of fixed assetsLaba penjualan barang bekas 856 Gain on sale of scrap Pendapatan bunga 504 Interest incomeLain-lain - bersih 4.372 Others - net LABA SEBELUM BEBAN PAJAK INCOME BEFORE INCOME PENGHASILAN 69.522 TAX EXPENSES BEBAN PAJAK PENGHASILAN (20.033 ) INCOME TAX EXPENSES LABA PERIODE BERJALAN CURRENT PERIOD INCOME SEBELUM PENYESUAIAN BEFORE EFFECT OF

PROFORMA 49.489 PROFORMA ADJUSTMENT Dampak penyesuaian proforma atas Effect of proforma adjustment on atas laba periode berjalan 862 current period income LABA TAHUN BERJALAN 50.351 CURRENT YEAR INCOME PENGHASILAN (BEBAN) OTHER COMPEHENSIVE KOMPREHENSIF LAIN (7.800) INCOME (EXPENSE) LABA KOMPREHENSIF SEBELUM COMPREHENSIVE INCOME DAMPAK PENYESUAIAN BEFORE EFFECT OF PROFORMA ATAS PROFORMA ADJUSTMENT

PENGHASILAN KOMPREHENSIF OTHER COMPREHENSIVE LAIN 42.551 INCOME Dampak penyesuaian proforma Effect of proforma adjustment

atas penghasilan on other comprehensive komprehensif lain 2.699 income LABA KOMPREHENSIF 45.250 COMPREHENSIVE INCOME

— F-150 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

137

34. INFORMASI SEGMEN (lanjutan) 34. SEGMENT INFORMATION (continued)

Laporan Laba Rugi dan Penghasilan Komprehensif Lain Konsolidasian (lanjutan)

Consolidated Statements of Profit or Loss and Other Comprehensive Income (continued)

31 Desember 2014/December 31, 2014 (Disajikan kembali, Catatan 4/As restated, Note 4)

Perawatan Tubuh/ Personal Minuman/ Makanan/ Farmasi/ Jumlah/ Care Beverages Foods Pharmacutical Total PENJUALAN 1.389.297 1.167.612 775.391 7.086 3.339.386 SALES BEBAN POKOK PENJUALAN 713.872 760.170 721.608 5.286 2.200.936 COST OF SALES LABA KOTOR 675.425 407.442 53.783 1.800 1.138.450 GROSS PROFIT Beban yang tidak dapat dialokasikan: Unallocated expenses:Beban penjualan (728.308) Selling expensesBeban umum dan administrasi (223.816) General and administrative expensesBeban bunga (60.503) Interest expensesRugi selisih kurs - bersih (4.293) Loss on foreign exchange - netBeban administrasi bank (3.143) Bank administration expensesBagian atas laba Share in earning Entitas Asosiasi 2.118 in AssociatesLaba penjualan aset tetap 2.092 Gain on sale of fixed assetsLaba penjualan barang bekas 1.595 Gain on sale of scrap Pendapatan bunga 1.217 Interest incomeLain-lain - bersih 12.119 Others - net LABA SEBELUM BEBAN PAJAK INCOME BEFORE INCOME PENGHASILAN 137.528 TAX EXPENSES BEBAN PAJAK PENGHASILAN (34.273) INCOME TAX EXPENSES LABA TAHUN BERJALAN CURRENT YEAR INCOME BEFORE SEBELUM PENYESUAIAN EFFECT OF PROFORMA

PROFORMA 103.255 ADJUSTMENT

Dampak penyesuaian proforma atas Effect of proforma adjustment on atas laba tahun berjalan 905 current year income LABA TAHUN BERJALAN 104.160 CURRENT YEAR INCOME PENGHASILAN OTHER COMPEHENSIVE KOMPREHENSIF LAIN 97.405 INCOME LABA KOMPREHENSIF SEBELUM COMPREHENSIVE INCOME DAMPAK PENYESUAIAN BEFORE EFFECT OF PROFORMA ATAS PROFORMA ADJUSTMENT

PENGHASILAN KOMPREHENSIF OTHER COMPREHENSIVE LAIN 201.565 INCOME Dampak penyesuaian proforma Effect of proforma adjustment

atas penghasilan on other comprehensive komprehensif lain 2.985 income LABA KOMPREHENSIF 204.550 COMPREHENSIVE INCOME

— F-151 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

138

34. INFORMASI SEGMEN (lanjutan) 34. SEGMENT INFORMATION (continued)

Laporan Laba Rugi dan Penghasilan Komprehensif Lain Konsolidasian (lanjutan)

Consolidated Statements of Profit or Loss and Other Comprehensive Income (continued)

31 Desember 2013/December 31, 2013 (Disajikan kembali, Catatan 4/As restated, Note 4) Perawatan Tubuh/ Personal Minuman/ Makanan/ Farmasi/ Lain-lain/ Jumlah/ Care Beverages Foods Pharmacutical Others Total PENJUALAN 1.172.057 904.859 176.852 13.458 88 2.267.314 SALES BEBAN POKOK PENJUALAN 568.512 617.690 159.361 9.588 79 1.355.230 COST OF SALES LABA KOTOR 603.545 287.169 17.491 3.870 9 912.084 GROSS PROFIT Beban yang tidak dapat dialokasikan: Unallocated expenses:Beban penjualan (614.596 ) Selling expenses General and administrativeBeban umum dan administrasi (178.544 ) expensesBeban bunga (36.441 ) Interest expensesRugi selisih kurs - bersih (11.751 ) Loss on foreign exchange - netBeban administrasi bank (2.116 ) Bank administration expensesBagian atas rugi Share in losses in Entitas Asosiasi (446 ) AssociatesLaba penjualan barang bekas 4.342 Gain on sale of scrap Laba penjualan aset tetap 735 Gain on sale of fixed assetsPendapatan bunga 634 Interest incomeLain-lain - bersih 3.592 Others - net LABA SEBELUM BEBAN PAJAK INCOME BEFORE INCOME PENGHASILAN - BERSIH 77.493 TAX EXPENSES - NET BEBAN PAJAK PENGHASILAN (19.037 ) INCOME TAX EXPENSES CURRENT YEAR INCOMELABA TAHUN BERJALAN BEFORE EFFECT OF SEBELUM PENYESUAIAN PROFORMA

PROFORMA 58.456 ADJUSTMENT Dampak penyesuaian proforma atas Effect of proforma adjustment on atas laba tahun berjalan (7.301 ) current year income LABA PERIODE/TAHUN CURRENT PERIOD/ BERJALAN 51.155 YEAR INCOME PENGHASILAN OTHER COMPEHENSIVE

KOMPREHENSIF LAIN 151.122 INCOME LABA KOMPREHENSIF SEBELUM COMPREHENSIVE INCOME DAMPAK PENYESUAIAN BEFORE EFFECT OF PROFORMA ATAS PROFORMA

PENGHASILAN KOMPREHENSIF ADJUSTMENT OTHER LAIN 202.277 COMPREHENSIVE INCOME Dampak penyesuaian proforma Effect of proforma adjustment

atas penghasilan on other comprehensive komprehensif lain (6.662 ) income LABA KOMPREHENSIF 195.615 COMPREHENSIVE INCOME

— F-152 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

139

34. INFORMASI SEGMEN (lanjutan) 34. SEGMENT INFORMATION (continued)

Laporan Laba Rugi dan Penghasilan Komprehensif Lain Konsolidasian (lanjutan)

Consolidated Statements of Profit or Loss and Other Comprehensive Income (continued)

31 Desember 2012/December 31, 2012 (Disajikan kembali, Catatan 4/As restated, Note 4) Perawatan Tubuh/ Personal Minuman/ Makanan/ Farmasi/ Lain-lain/ Jumlah/ Care Beverages Foods Pharmacutical Others Total PENJUALAN 859.129 750.935 73.605 2.457 6.011 1.692.137 SALES BEBAN POKOK PENJUALAN 486.028 463.493 66.685 1.922 2.503 1.020.631 COST OF SALES LABA KOTOR 373.101 287.442 6.920 535 3.508 671.506 GROSS PROFIT Beban yang tidak dapat dialokasikan: Unallocated expenses:Beban penjualan (477.399 ) Selling expenses General and administrativeBeban umum dan administrasi (120.268 ) expensesBeban bunga (31.141 ) Interest expensesRugi selisih kurs - bersih (3.175 ) Loss on foreign exchange – netBeban administrasi bank (1.877 ) Bank administration expensesBagian atas rugi bersih Share in net losses in Entitas Asosiasi (55 ) AssociatesLaba penjualan barang bekas 1.048 Gain on sale of scrap Pendapatan bunga 63 Interest incomeLaba penjualan aset tetap 8 Gain on sale of fixed assetsLain-lain - bersih 448 Others - net LABA SEBELUM BEBAN PAJAK INCOME BEFORE INCOME PENGHASILAN - BERSIH 39.158 TAX EXPENSES - NET BEBAN PAJAK PENGHASILAN - INCOME TAX BERSIH (12.900 ) EXPENSES -NET CURRENT YEAR INCOMELABA TAHUN BERJALAN BEFORE EFFECT OF SEBELUM PENYESUAIAN PROFORMA

PROFORMA 26.258 ADJUSTMENT Dampak penyesuaian proforma atas Effect of proforma adjustment on atas laba tahun berjalan 5.286 current year income LABA TAHUN BERJALAN 31.544 CURRENT YEAR INCOME PENGHASILAN OTHER COMPEHENSIVE KOMPREHENSIF LAIN 177.885 INCOME LABA KOMPREHENSIF SEBELUM COMPREHENSIVE INCOME DAMPAK PENYESUAIAN BEFORE EFFECT OF PROFORMA ATAS PROFORMA

PENGHASILAN KOMPREHENSIF ADJUSTMENT OTHER LAIN 209.429 COMPREHENSIVE INCOME Dampak penyesuaian proforma Effect of proforma adjustment

atas penghasilan on other comprehensive komprehensif lain (23.329 ) income LABA KOMPREHENSIF 186.100 COMPREHENSIVE INCOME

— F-153 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

140

34. INFORMASI SEGMEN (lanjutan) 34. SEGMENT INFORMATION (continued)

Laporan Posisi Keuangan Konsolidasian Consolidated Statements of Financial Position 30 Juni 2015/June 30, 2015 Perawatan Tubuh/ Personal Minuman/ Makanan/ Farmasi/ Jumlah/ Care Beverages Foods Pharmacutical Total Aset segmen 326.714 535.953 48.974 8.588 920.229 Segment assetsAset segmen yang tidak dapat dialokasikan 1.294.552 Unallocated segment assets

2.214.781

Liabilitas segmen yang tidak dapat dialokasikan 1.386.960 Unallocated segment liabilities

Pengeluaran modal 32.733 46.125 - 175 79.033 Capital expenditurePengeluaran modal yang tidak dapat dialokasikan 2.585 Unallocated capital expenditure

81.618

31 Desember 2014/December 31, 2014 (Disajikan kembali, Catatan 4/As restated, Note 4) Perawatan Tubuh/ Personal Minuman/ Makanan/ Farmasi/ Jumlah/ Care Beverages Foods Pharmacutical Total Aset segmen 323.702 497.733 46.816 6.988 875.239 Segment assetsAset segmen yang tidak dapat dialokasikan 988.142 Unallocated segment assets

1.863.381

Liabilitas segmen yang tidak dapat dialokasikan 1.200.997 Unallocated segment liabilities

Pengeluaran modal 60.566 115.981 - - 176.547 Capital expenditurePengeluaran modal yang tidak dapat dialokasikan 13.780 Unallocated capital expenditure

190.327

31 Desember 2013/December 31, 2013 (Disajikan kembali, Catatan 4/As restated, Note 4) Perawatan Tubuh/ Personal Minuman/ Makanan/ Farmasi/ Jumlah/ Care Beverages Foods Pharmacutical Total Aset segmen 211.912 316.302 21.249 8.396 557.859 Segment assetsAset segmen yang tidak dapat dialokasikan 767.121 Unallocated segment assets

1.324.980

Liabilitas segmen yang tidak dapat dialokasikan 863.788 Unallocated segment liabilities

Pengeluaran modal 17.102 27.575 - 1.840 46.517 Capital expenditurePengeluaran modal yang tidak dapat dialokasikan 33.403 Unallocated capital expenditure

79.920

— F-154 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

141

34. INFORMASI SEGMEN (lanjutan) 34. SEGMENT INFORMATION (continued)

Laporan Posisi Keuangan Konsolidasian (lanjutan) Consolidated Statements of Financial Position (continued)

31 Desember 2012/December 31, 2012 (Disajikan kembali, Catatan 4/As restated, Note 4) Perawatan Tubuh/ Personal Minuman/ Makanan/ Farmasi/ Jumlah/ Care Beverages Foods Pharmacutical Total Aset segmen 184.310 233.917 13.240 13.434 444.901 Segment assetsAset segmen yang tidak dapat dialokasikan 542.086 Unallocated segment assets

986.987

Liabilitas segmen yang tidak dapat dialokasikan 694.143 Unallocated segment liabilities

Pengeluaran modal 22.891 45.077 - 1.310 69.278 Capital expenditurePengeluaran modal yang tidak dapat dialokasikan 15.870 Unallocated capital expenditure

85.148

1 Januari 2011/31December 2012/ January 1, 2011/December 31, 2012 (Disajikan kembali, Catatan 4/As restated, Note 4) Perawatan Tubuh/ Personal Minuman/ Makanan/ Farmasi/ Jumlah/ Care Beverages Foods Pharmacutical Total Aset segmen 143.198 119.349 18.907 1.034 282.488 Segment assetsAset segmen yang tidak dapat dialokasikan 379.951 Unallocated segment assets

662.439

Liabilitas segmen yang tidak dapat dialokasikan 567.888 Unallocated segment liabilities

Pengeluaran modal 20.266 45.230 - 51 65.547 Capital expenditurePengeluaran modal yang tidak dapat dialokasikan 17.402 Unallocated capital expenditure

82.949

— F-155 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

142

35. LABA PER SAHAM DASAR YANG DIATRIBUSIKAN KEPADA PEMILIK ENTITAS INDUK

35. BASIC EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE PARENT ENTITY

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated, Note 4)

Rata-rata tertimbang Weighted average number saham biasa untuk shares for computation perhitungan laba per of basic earnings

lembar saham dasar 1.200.000.000 650.000.000 927.260.274 650.000.000 650.000.000 per shareLaba bersih Net income for

untuk perhitungan computation of basic saham dasar 141.330 50.241 103.995 50.893 31.460 earnings

Laba bersih per saham Diluted earnings dilusian (Rupiah per share (Full

penuh) 118 77 112 78 48 amount)

36. PENGUNGKAPAN TAMBAHAN LAPORAN ARUS KAS 36. SUPPLEMENTAL DISCLOSURES ON STATEMENTS OF CASH FLOWS

Aktivitas investasi yang tidak mempengaruhi kas dan setara kas terdiri atas:

Noncash investing transactions consist of the following:

31 Desember/December 31, 2014 2013 2012 30 Juni/June 30, (Disajikan kembali, Catatan 4/

2015 2014 As restated Note 4) Perolehan aset tetap - Acquisition of fixed assets - kendaraan melalui utang vehicles through financing sewa - kendaraan 478 4.159 6.170 17.974 - lease payables - vehicle Acquisition of fixed assets -Perolehan aset tetap - vehicles through kendaraan melalui utang consumer financing pembiayaan konsumen 391 - 2.390 3.430 9.366 payables

37. IKATAN DAN PERJANJIAN PENTING 37. COMMITMENTS AND SIGNIFICANT AGREEMENTS

a. Wen Ken Drug Co. Pte. Ltd., Singapura (WKD) a. Wen Ken Drug Co. Pte. Ltd., Singapura (WKD)

Pada tanggal 28 April 2011, Entitas Induk menandatangani perjanjian bagi hasil dengan WKD yang menyatakan bahwa Entitas Induk memiliki hak lisensi untuk menggunakan merek “Larutan Cap Kaki Tiga” untuk jangka waktu 15 tahun dan dapat diperpanjang untuk 15 tahun berikutnya berdasarkan kesepakatan bersama yang dibuat secara tertulis selambat-lambatnya satu tahun sebelum berakhirnya masa lisensi.

On April 28, 2011, the Company entered into profitsharing agreement with WKD which states that the Company has the license rights to use the brand "Larutan Cap Kaki Tiga" for a period of 15 years and can be extended to another 15 years based on a mutual agreement made in writing no later later than one year before the expiration of the license.

Tanpa persetujuan tertulis terlebih dahulu dari WKD, Entitas Induk tidak boleh melakukan aktivitas sebagai berikut:

Without the written consent of WKD, the Company is prohibited from conducting the following activities such as:

a. Mengalihkan sebagian atau keseluruhan isi dari Perjanjian Lisensi “Cap Kaki Tiga”.

b. Melisensikan kembali/ulang atas merek Cap Kaki Tiga kepada pihak lain.

a. Transfer part or all of the contents of the License Agreement “Cap Kaki Tiga”.

b. Sublicense/reprinted brand “Cap Kaki Tiga” to the others.

— F-156 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

143

37. IKATAN DAN PERJANJIAN PENTING (lanjutan) 37. COMMITMENTS AND SIGNIFICANT AGREEMENTS (continued)

a. Wen Ken Drug Co. Pte. Ltd., Singapura (WKD) (lanjutan)

b. Wen Ken Drug Co. Pte. Ltd., Singapura (WKD) (continued)

Beban yang dikenakan WKD sehubungan dengan penggunaan merek adalah sebesar Rp 6.262 dan Rp 3.700 untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan Rp 9.582, Rp 9.509 dan Rp 6.130 untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 31 Desember 2012, disajikan sebagai bagian dari “Beban Pokok Penjualan” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Expenses charged by WKD in accordance with usage of license amounted to Rp 6,262 and Rp 3,700 for the six-month periods ended June 30, 2015 and 2014, and Rp 9,582, Rp 9,509, and Rp 6,130 for the years ended December 31, 2014, 2013, and 2012, respectively, are presented as part of “Cost of Goods Sold” in the consolidated statements of profit or loss and other comprehensive income.

b. Tampico Beverage Incorporation (TB) c. Tampico Beverage Incorporation (TB)

Pada tanggal 1 Mei 2012, Entitas Indukmenandatangani perjanjian lisensi dengan TB, yang menyatakan bahwa Entitas Induk memiliki hak lisensi untuk memproduksi dan mendistribusi produk-produk Tampico dalam teritorial Republik Indonesia. Perjanjian ini mulai berlaku pada tanggal 1 Mei 2012 dan akan berakhir pada tanggal 30 April 2017.

On May 1, 2012, the Company entered into license agreement with TB, which states that the Company has the license rights to manufacture and distribute Tampico’s products in the territory of the Republic of Indonesia. This agreement is effective on May 1, 2012 and will expire on April 30, 2017.

Selama jangka waktu perjanjian antara Entitas Induk dengan TB berlangsung, tanpa persetujuan tertulis dari TB, Entitas Induk dilarang melakukan aktivitas antara lain sebagai berikut:

During the term of agreement between the Company and TB, without the prior written consent from TB, the Company is prohibited from conducting the following activities:

a. Menggunakan atau mengeksploitasi, atau mengijinkan pihak ketiga manapun untuk menggunakan atau mengeksploitasi merk dagang Tampico di luar teritori Tampico.

b. Menjual, mengalihkan, atau mendistribusikan formulasi produk minuman Tampico dalam bentuk apapun kepada pihak ketiga yang tidakberwenang.

c. Memberikan hak pakai kepada pihak ketiga manapun, untuk mendistribusikan, memasarkan, atau memberikan sub lisensi lebih lanjut atas produk Tampico.

d. Dalam jangka waktu 2 tahun setelah perjanjian berakhir, Entidas Induk dilarang berkompetisidengan TB, namun Entitas Induk berhak untuk memproduksi, mendistribusikan, memasarkan dan menjual produk-produk tertentu.

a. Use or exploit, or permit any third party to use or exploit the trade mark outside the territory Tampico.

b. Sell, transfer, or distribute the product formulation Tampico beverages in any form to third parties that are not authorized.

c. Give rights of use to any third party, to distribute, market, or provide further sub-licenses for Tampicoproducts.

d. Within a period of 2 years after the agreement expires, the Company prohibited compete with TB, but the Company reserves the right to manufacture, distribute, market and sell certain products.

e. Mengalihkan atau menggadaikan perjanjian lisensi ini secara keseluruhan atau sebagian kepada pihak ketiga tanpa persetujuan tertulis dari Tampico.

e. Transferring or mortgaging the license agreement in whole or in part to any third party without the prior written consent of Tampico.

Beban yang dikenakan TB sehubungan dengan produksi barang adalah sebesar Rp 585, Rp 1.438 dan Rp 1.412 untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 31 Desember 2012, disajikan sebagai bagian dari “Beban Pokok Penjualan” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Expenses charged by TB in accordance with production of goods amounted to Rp 585, Rp 1,438, and Rp 1,412 for the years ended December 31, 2014, 2013, and 2012, respectively, are presented as part of “Cost of Goods Sold” in the consolidated statements of profit or loss and other comprehensive income.

— F-157 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

144

37. IKATAN DAN PERJANJIAN PENTING (lanjutan) 37. COMMITMENTS AND SIGNIFICANT AGREEMENTS (continued)

c. PT Perusahaan Gas Negara (Persero) Tbk (PGN) c. PT Perusahaan Gas Negara (Persero) Tbk (PGN)

Pada tanggal 30 Juli 2012, Entitas Indukmenandatangani perjanjian jual beli gas dengan PGN, yang menyatakan bahwa PGN akan menyalurkan gas kepada Entitas Induk sebagai bahan bakar untuk produksi produk-produk makanan dan minuman Entitas Induk. Perjanjian ini akan berakhir pada tanggal 31 Maret 2014. Pada tanggal 3 Mei 2013, perjanjian ini telah diperbaharui dan diperpanjang sampai dengan31 Maret 2018. Untuk menjamin pembayaran kepada PGN, Entitas Induk memberikan jaminan berupa penempatan deposito yang dibatasi penggunaannya pada PT Bank Central Asia Tbk dan PT CIMB Niaga Tbk (Catatan 11).

On July 30, 2012, the Company entered into gas sales agreement with PGN, which states that PGN willdeliver gas to the Company as fuel for producing the Company’s food and beverages products. This agreement expired on March 31, 2014. On May 3,2013, this agreement has been renewed and extended until March 31, 2018. In order to guarantee payments to PGN, the Company provides restricted time deposits in PT Bank Central Asia Tbk and PT CIMB Niaga Tbk as guarantee placement (Note 11).

Sejak penandatanganan perjanjian sampai dengan 2 tahun setelah perjanjian berakhir, masing-masing pihak harus merahasiakan ketentuan-ketentuan dalam perjanjian dan tidak akan memberitahukan kepada pihak lain atas hal-hal yang berkaitan dengan bisnis, finansial atau seluruh informasi rahasia yang diperoleh dari perjanjian ini, kecuali atas persetujuan tertulis dari pihak yang memberikan informasi rahasia. Ketentuan tersebut dikecualikan apabila, antara lain karena diharuskan berdasarkan peraturan yang berlaku, ketentuan pasar modal, lembaga keuangan atau putusan pengadilan.

Since the signing of the agreement up to 2 years after the agreement expires, each party must keep the terms of the agreement and will notify the other parties on matters relating to the business, financial or all of the confidential information obtained from this agreement, except written consent of the party providing confidential information. The provision is excluded when, among other things as required under applicable regulations, capital market regulations, financial institution or court decision.

Beban yang dikenakan PGN sehubungan dengan penggunaan bahan bakar adalah sebesar Rp 587 dan Rp 367 untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan Rp 1.011 untuk tahun yang berakhir pada tanggal 31 Desember 2014, disajikan sebagai bagian dari “Beban Pokok Penjualan” dalam laporan laba rugi dan penghasilankomprehensif lain konsolidasian.

Expenses charged by PGN in accordance with usage of fuel amounted to Rp 587 and Rp 367 for the six-month periods ended June 30, 2015 and 2014, and Rp 1,011 for the year ended December 31, 2014,respectively, are presented as part of “Cost of Goods Sold” in the consolidated statements of profit or loss and other comprehensive income.

d. PT Sentra Multigas Utama (SMU) d. PT Sentra Multigas Utama (SMU)

Pada tanggal 27 September 2012, Entitas Indukmenandatangani Perjanjian Pasokan Produk dengan SMU yang menyatakan bahwa Entitas Induk menunjuk SMU untuk memberikan pasokan nitrogen cair. Perjanjian ini mulai berlaku pada tanggal 27 September 2012 dan akan berakhir pada tanggal 27 September 2017.

On September 27, 2012, the Company entered into Product Supply Agreement with SMU in which the Company appointed SMU to provide a supply of liquid nitrogen. This Agreement is effective on September 27, 2012 and will expire on September 27, 2017.

Beban yang dikenakan SMU sehubungan dengan penggunaan nitrogen cair adalah sebesar Rp 377 dan Rp 375 untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan Rp 734, Rp 638 dan Rp 385 untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 31 Desember 2012, disajikan sebagai bagian dari “Beban Pokok Penjualan” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Expenses charged by SMU in accordance with usage of liquid nitrogen amounted to Rp 377 and Rp 375 for the six-month periods ended June 30, 2015 and 2014, and Rp 734, Rp 638, and Rp 385 for the years ended December 31, 2014, 2013, and 2012, respectively, are presented as part of “Cost of Goods Sold” in the consolidated statements of profit or loss and other comprehensive income.

— F-158 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

145

37. IKATAN DAN PERJANJIAN PENTING (lanjutan) 37. COMMITMENTS AND SIGNIFICANT AGREEMENTS (continued)

e. PT Sariguna Primatirta (SP) e. PT Sariguna Primatirta (SP)

Pada tanggal 1 April 2015, Entitas Induk menandatangani perjanjian pembuatan produk dengan SP, yang menyatakan bahwa Entitas Induk menunjuk SP untuk membuat produk minuman untuk kepentingan Entitas Induk. Perjanjian ini mulai berlaku selama satu tahun dan akan berakhir pada tanggal 1 April 2016.

On April 1, 2015, the Company entered into agreement with SP to manufacture products, which states that the Company appoint SP to make beverages products for the benefit of the Company. This agreement valid for one year and will expire on April 1, 2016.

Entitas Induk tidak akan mencantumkan segala hal yang berkaitan dengan SP di dalam produk beserta kemasannya, apabila produksi barang bukan oleh SP dan saat perjanjian ini berakhir, untuk waktu yang tidak terbatas, harus memberlakukan segala pelaksanaan perjanjian ini sebagai rahasia.

The Company will not include all matters relating to the SP in the product and its packaging, if the production of goods not by the SP and when this agreement expires, for an indefinite period, should impose any implementation of this agreement as confidential.

SP dilarang untuk membocorkan rahasia mengenai standar produk kepada pihak lain dan/atau pelanggaran terhadap hak kekayaan intelektual.

SP forbidden to divulge the secrets of product standards to other parties and/or violation of intellectual property rights.

Beban yang dikenakan SP sehubungan dengan produksi barang adalah sebesar Rp 2.861 dan Rp 6.861 untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 danRp 13.546, Rp 11.165 dan Rp 7.840 untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 31 Desember 2012, disajikan sebagai bagian dari “Beban Pokok Penjualan” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Expenses charged by SP in accordance with production of goods amounted to Rp 2,861 and Rp 6,861 for the six-month periods ended June 30, 2015 and 2014, and Rp 13,546, Rp 11,165, and Rp 7,840 for the years ended December 31, 2014, 2013, and 2012, respectively, are presented as part of “Cost of Goods Sold” in the consolidated statements of profit or loss and other comprehensive income.

f. PT Merpati Mahardika (MM) f. PT Merpati Mahardika (MM)

Pada tanggal 1 April 2015, Entitas Induk menandatangani perjanjian Kesepakatan Kerjasama dengan MM bahwa Entitas Induk menunjuk MM untuk memberikan pasokan bahan baku kepada Entitas Induk sehubungan dengan kegiatan produksi Entitas Induk. Perjanjian ini berlaku pada tanggal 01 April 2015 dan akan berakhir pada tanggal 31 Maret 2016.

On April 1, 2015, the Company entered into Partnership Agreement with MM in which the Company appointed MM to provide a supply of raw materials to the Company in connection with the Company’s manufacturing operation. This agreement is effective on April 01, 2015 and will expire on March 31, 2016.

Selama jangka waktu perjanjian antara Entitas Induk dengan MM berlangsung, tanpa persetujuan tertulis dari MM, Entitas Induk dilarang melakukan aktivitas antara lain sebagai berikut:

During the term of agreement between the Company and MM, without the prior written consent from MM, the Company is prohibited from conducting the following activities:

a. Tidak dapat membatalkan order pembelian.b. Tidak dapat memakai atau memperjualbelikan

produk-produk yang dipasok oleh MM kepada pihak manapun, dalam hal produk-produk tersebut dengan alasan apapun tidak terpakai atau tidak dipakai lagi oleh Entitas Induk.

a. Unable to cancel the purchase order.b. Unable to use or trade in the products supplied by

MM to any party, in the case of these products for any reason unused or no longer in use by the Company.

.

— F-159 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

146

37. IKATAN DAN PERJANJIAN PENTING (lanjutan) 37. COMMITMENTS AND SIGNIFICANT AGREEMENTS (continued)

f. PT Merpati Mahardika (MM) (lanjutan) f. PT Merpati Mahardika (MM) (continued)

Beban yang dikenakan MM sehubungan dengan pembelian bahan baku adalah sebesar Rp 1.048 dan Rp 1.936 untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan Rp 3.269, Rp 1.935 dan Rp 2.357 untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 31 Desember 2012, disajikan sebagai bagian dari “Beban Pokok Penjualan” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Expenses charged by MM in accordance with purchase of raw materials amounted to Rp 1,048 and Rp 1,936 for the six-month periods ended June 30, 2015 and 2014, and Rp 3,269, Rp 1,935, and Rp 2,357 for the years ended December 31, 2014, 2013, and 2012, respectively, are presented as part of “Cost of Goods Sold” in the consolidated statements of profit or loss and other comprehensive income.

g. PT Hasil Raya Industri (HRI) g. PT Hasil Raya Industri (HRI)

Pada tanggal 16 Mei 2014, Entitas Induk menandatangani perjanjian pembuatan produk, yang menyatakan bahwa Entitas Induk menunjuk HRI untuk membuat bahan kemasan untuk mendukung produksi Entitas Induk. Perjanjian ini mulai berlaku pada tanggal 16 Mei 2014 dan akan berakhir pada tanggal 16 Mei 2019.

On May 16, 2014, the Company entered into agreement to manufacture products, which states that the Company appointed HRI to make packaging material to support the Company’s production. This agreement is effective on May 16, 2014 and will expireon May 16, 2019.

Tanpa persetujuan tertulis terlebih dahulu dari HRI, Entitas Induk tidak boleh menggunakan mesin produksi botol dan penunjangnya yang ditempatkan oleh HRI di pabrik untuk kepentingan Entitas Induk

Without the written consent of HRI, the Company is prohibited to use the bottle production machine and its supporting placed by HRI in the factory for the benefit of the Company.

Tanpa persetujuan tertulis terlebih dahulu dari Entitas Induk, HRI tidak boleh melakukan aktivitas sebagai berikut:

Without the written consent of the Company, HRI is prohibited from conducting the following activities such as:

a. Menggunakan desain dan/atau hak kekayaan intelektual lainnya selain untuk keperluan produksi botol.

b. Melakukan modifikasi terhadap mould yang ada.c. Memasok botol untuk pihak lain dengan

menggunakan mould milik Entitas Induk.d. Melakukan tindakan pendaftaran, pembaharuan,

atau pelanggaran atas merek dagang atau hak-hak lainnya di bidang kekayaan intelektual milik Entitas Induk.

e. Menunjuk atau mengalihkan setiap hak dan/atau kewajibannya.

a. Using the design and/or other intellectual property rights for purposes other than the production of bottles.

b. Modify the existing mould.c. Supplying bottles to the other party using a mould

owned by the Company.d. Perform acts of registration, renewal, or

infringement of trademark or other rights in the field of intellectual property owned by the Company.

e. Appoint or transfer any rights and/or obligations.

Beban yang dikenakan HRI sehubungan dengan produksi bahan kemasan adalah sebesar Rp 35.949dan Rp 31.541 untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan Rp 60.220, Rp 50.999 dan Rp 33.715 untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 31 Desember 2012, disajikan sebagai bagian dari “Beban Pokok Penjualan” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Expenses charged by HRI in accordance with production of packagings material amounted to Rp 35,949 and Rp 31,541 for the six-month periodsended June 30, 2015 and 2014, and Rp 60,220, Rp 50,999, and Rp 33,715 for the years ended December 31, 2014, 2013, and 2012, respectively, are presented as part of “Cost of Goods Sold” in the consolidated statements of profit or loss and other comprehensive income.

h. PT Sugar Labinta (SL) h. PT Sugar Labinta (SL)

Pada tanggal 1 April 2015, Entitas Induk menandatangani perjanjian pembuatan produk dengan SP, yang menyatakan bahwa Entitas Induk menunjuk SP untuk membuat produk minuman untuk kepentingan Entitas Induk. Perjanjian ini mulai berlaku selama satu tahun dan akan berakhir pada tanggal 1 April 2016.

On April 1, 2015, the Company entered into agreement with SP to manufacture products, which states that the Company appoint SP to make beverages products for the benefit of the Company. This agreement valid for one year and will expire on April 1, 2016.

— F-160 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

147

37. IKATAN DAN PERJANJIAN PENTING (lanjutan) 37. COMMITMENTS AND SIGNIFICANT AGREEMENTS (continued)

h. PT Sugar Labinta (SL) (lanjutan) h. PT Sugar Labinta (SL) (continued)

Beban yang dikenakan SL sehubungan dengan pembelian bahan baku adalah sebesar Rp 15.240 dan Rp 12.721 untuk periode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2015 dan 2014 dan Rp 25.174, Rp 25.509 dan Rp 10.467 untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013 dan 31 Desember 2012, disajikan sebagai bagian dari “Beban Pokok Penjualan” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Expenses charged by SL in accordance with purchase of raw materials amounted to Rp 15,240 and Rp 12,721 for the six-month periods ended June 30, 2015 and 2014, and Rp 25,174, Rp 25,509, and Rp 10,467 for the years ended December 31, 2014, 2013, and 2012, respectively, are presented as part of “Cost of Goods Sold” in the consolidated statements of profit or loss and other comprehensive income.

38. PERISTIWA SETELAH PERIODE PELAPORAN KEUANGAN

38. EVENTS AFTER FINANCIAL REPORTING PERIOD

PT Bank CIMB Niaga Tbk (CIMB) PT Bank CIMB Niaga Tbk (CIMB)

Pada tanggal 22 Juli 2015, berdasarkan Surat Perpanjangan dan Penambahan Fasilitas Pinjaman No. 207/SX/CBG II/VII/2015, Entitas Induk memperoleh perpanjangan atas fasilitas kredit Revolving Loan I, Fasilitas Kredit Rekening Koran dan Fasilitas Letter of Credit sampai dengan tanggal 22 Mei 2016 (Catatan 15).Entitas Induk juga memperoleh fasilitas Forex Line

On July 22, 2015 based on Letter of Extension andAddition Credit Loan Facility No. 207/SX/CBG II/VII/2015,the Company obtained an extension on credit facilities Revolving Loan I, Bank Overdraft, and Letter of Credit until May 22, 2016 (Note 15). The company also obtained Forex Line Credit.

Pada tanggal 13 Juli 2015, berdasarkan Surat Pemenuhan Financial Covenant No. 205/CBGII/SX/VII/2015, Entitas Induk telah memperoleh waiver dari CIMB atas seluruh rasio keuangan yang tidak dapat dipenuhi oleh Entitas Induk pada tahun 2015 (Catatan 15).

On July 13, 2015 based on Financial Compliance Letter No. 205/CBG II/SX/VII/2015, the Company has obtained waiver from CIMB for all breached financial ratio covenantin 2015 (Note 15).

Berdasarkan Surat Akta Notaris No. 13 tanggal 20 Agustus 2015 dari Antoni Halim, S.H., Entitas Indukmemperoleh perpanjangan atas fasilitas kredit Revolving Loan I, Fasilitas Kredit Rekening Koran, Fasilitas Letter of Credit , dan fasilitas Forex Line sampai dengan tanggal 22 Mei 2016 (Catatan 15). Selain itu, terdapat perubahan atas aktivitas yang harus memperoleh persetujuan tertulis dari CIMB yaitu mengenai1. Diperbolehkan untuk merubah pengurus sampai

dengan Penawaran Umum Perdana Saham.2. Penghapusan pembatasan mengenai pembagian

dividen.

Based on Notarial Deed No. 13 dated August 20, 2015 of Antoni Halim, S.H., the Company obtained an extension on credit facilities Revolving Loan I, Bank Overdraft, Letter of Credit, and Forex Line Credit until May 22, 2016 (Note 15).In addition, there are changes in the activity must obtain written approval from CIMB, as follows:

1. Allowed to change the board until the Initial Public Offering.

2. Removal of restrictions on the distribution of dividends.

PT Bank Central Asia Tbk (BCA) PT Bank Central Asia (BCA)

Pada tanggal 27 Juli 2015, berdasarkan Surat Perubahan Perjanjian Kredit No. 171/SPPK/SBK-W08/2015, Entitas Induk memperoleh perpanjangan atas Fasilitas Kredit Rekening Koran I dan III, Time Revolving Loan, Fasilitas Omnibus Usance Letter of Credit, dan Fasilitas Forward Line sampai dengan tanggal 31 Juli 2016 (Catatan 15).

On July 27, 2015, based on the Letter of Credit Agreement Amendments No. 171/SPPK/SBK-W08/2015, the Company obtained an extension on Overdraft Credit Facility I and III,Time Revolving Loan Credit Facility, Omnibus Usance Letter of Credit Facility, and the Forward Line Facility until July 31, 2016 (Note 15).

Pada tanggal 21 Agustus 2015, berdasarkan Surat Perubahan Perjanjian Kredit No. 3105/PPK/SLK/2015,Entitas Induk memperoleh perpanjangan atas fasilitas kredit Letter of Credit Line dan Forward Line sampai dengan tanggal 31 Juli 2016 dan pembatasan mengenai kebijakan Entitas Induk untuk melakukan pembagian dividen telah dihapuskan (Catatan 15).

On August 21, 2015 based on Credit Agreement Amendments No. 3105/PPK/SLK/2015, the Company obtained an extension on credit facilities Letter of Credit Line and Forward Line until July 31, 2016 and restrictions on the Company's policy on distribution of dividends has been eliminated (Note 15).

— F-161 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

148

38. PERISTIWA SETELAH PERIODE PELAPORAN KEUANGAN (lanjutan)

38. EVENTS AFTER FINANCIAL REPORTING PERIOD (continued)

PT Bank Index Selindo (Index) PT Bank Index Selindo (Index)

Pada tanggal 1 Juli 2015, berdasarkan Surat Perubahan Perjanjian Kredit No. 559/PRK/LC3-ASK/VII/2015, Entitas Induk memperoleh perpanjangan atas Fasilitas Kredit Rekening Koran dari Index sampai dengan tanggal 1 Juli 2016 (Catatan 15).

On July 1, 2015, based on the Letter of Credit Agreement Amendments No. 559/PRK/LC3-ASK/VII/2015, the Company obtained an extension on Overdraft Credit Facility from Index until July 1, 2016 (Note 15).

PT Bank Danamon Indonesia Tbk (Danamon) PT Bank Danamon Indonesia Tbk (Danamon)

Pada tanggal 6 Agustus 2015, berdasarkan Perjanjian Perpanjangan terhadap Perjanjian Kredit No. PPWK/176/0715, DLS memperoleh perpanjangan atas Fasilitas Open Account Financing dan Fasilitas Kredit Rekening Koran dari Danamon sampai dengan tanggal 22 Juli 2016 (Catatan 15).

On August 6, 2015, based on Extension Agreement to Credit Agreement No. PPWK/176/0715, DLS obtained an extension on Open Account Financing Facility and Overdraft Facility from Danamon until July 22, 2016 (Note 15).

Pernyataan Keputusan Pemegang Saham dan Perubahan Anggaran Dasar

Statement of Shareholders and Change on Articles of Assocation

Akta Notaris No. 46 dari DR. Fulgensius Jimmy H.L.T., S.H., M.H., M.M., tanggal 14 Juli 2015 menegaskan kembali keputusan pemegang saham yang telah disetujui dalam Keputusan Sirkuler Pemegang Saham sebagai pengganti Rapat Umum Pemengang Saham tanggal 29 Juni 2015, dengan keputusan sebagai berikut:

Notarial Deed No. 46 of DR. Fulgensius Jimmy H.L.T.,S.H., M.H., M.M., on July 14, 2015, reaffirm the Shareholder’s decisions on Circular Statements of Shareholders as subtitute of the Company’s General Shareholders Meetings dated June 29, 2015, with decisions as follows:

� Menyetujui rencana Entitas Induk untuk melakukan Penawaran Umum melalui pasar modal sebanyak-banyaknya sebesar 16% dari modal ditempatkan dan disetor setelah penawaran umum perdana saham.

� Menyetujui perubahan nama Entitas Induk menjadi PT Kino Indonesia Tbk.

� Menyetujui perubahan nilai nominal saham dari Rp 1.000.000 (Rupiah penuh) menjadi Rp 100 (Rupiah penuh) dan mengubah ketentuan pasal 4 anggaran dasar Entitas Induk.

� Agree the Company’s plan to conduct an Initial Public Offering through capital market at most 16% from paid in capital of the Company after the Initial Public Offering.

� Agree to change the Company’s name to PT Kino Indonesia Tbk.

� Agree the change of par value of shares from Rp 1,000,000 (full amount) to Rp 100 (full amount) and amend the article 4 of the Company’s Articles of Association.

� Menyetujui pelaksanaan Program Alokasi Saham Karyawan (Employee Stock Allocation atau “ESA”) Entitas Induk dalam rangka Penawaran Umum dengan tata cara yang akan ditentukan oleh Direksi Entitas Induk, dengan jumlah maksimal 10% dari saham yang ditawarkan.

� Menyetujui untuk mengubah maksud dan tujuan Entitas Induk.

� Menyetujui untuk merubah seluruh anggaran dasar Entitas Induk sehubungan status Entitas Induk menjadi perseroan terbatas terbuka/publik dalam rangka penyesuaian dengan Peraturan Bapepam-LK No. IX.J.1, lampiran Keputusan Ketua Bapepam-LK No. Kep-179/BL/2008 tentang pokok-pokok Anggaran Dasar Perusahaan Yang Melakukan Penawaran Umum Efek bersifat Ekuitas dan Perusahaan Publik (Peraturan No. IX.J.1), Peraturan OJK No. 32/POJK.04/2014 tentang Rencana dan Penyelenggaraan Rapat Umum Pemegang Saham Perusahaan Terbuka dan peraturan OJK No. 33/POJK.04/2014 tentang Direksi dan Dewan Komisaris Emiten atau Perusahaan Publik

� Agree to implementation the Company’s Employee Stock Allocation or "ESA" in connection with the Initial Public Offering with the procedures that will bedetermined by the Directors of the Company, with maximum amount of 10% of offered shares.

� Agree to change the Company’s aim and objectives.

� Agree to change the entire Company’s Article of Association in connection with the status of the Company to be a public company in order to comply with regulation of Bapepam-LK No. IX.J.1, annex of the Chairman of Bapepam-LK No. Kep-179/BL/2008 on the main chapters of the Articles of Association of the Company that conduct Public Offering of Equity Securities and Public Companies (Regulation No. IX.J.1), OJK regulation No. 32/POJK.04/2014 of the Plan and Organization of the General Meeting of Shareholders of Public Company and OJK regulation No. 33 / POJK.04 / 2014 of the Directors and Board of Commissioners of Public Company.

— F-162 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

149

38. PERISTIWA SETELAH PERIODE PELAPORAN KEUANGAN (lanjutan)

38. EVENTS AFTER FINANCIAL REPORTING PERIOD (continued)

Pernyataan Keputusan Pemegang Saham dan Perubahan Anggaran Dasar (lanjutan)

Statement of Shareholders and Change on Articles of Assocation (continued)

� Memberhentikan dengan hormat seluruh anggota Direksi dan Dewan Komisaris Entitas Induk yang lama dengan memberikan pembebasan dan pelunasan sepenuhnya kepada mereka dan seketika itu juga mengangkat anggota Direksi dan anggota Dewan Komisaris Entitas Induk yang baru.

� Honorably dismissed all current members of Directors and Board of Commissioners of the Company by giving exemption and entire repayment to them and instantly appoint the Company’s new members of Directors and Board of Commissioners.

Susunan dewan Komisaris dan Direksi baru menjadi sebagai berikut:

The new composition of the board of Commissioners and Directors of the Company are as flollow:

Dewan Komisaris/Board of Commissioners

Presiden Komisaris : Alfonso Djakaria Rahardja : President CommissionerKomisaris : Adjie Rustam Ramdja : Commissioner Komisaris Independen : Susanto Setiono : Independent Commissioner

Direksi/Directors

Presiden Direktur : Harry Sanusi : President DirectorWakil Presiden Direktur : Tjiang Likson Chandra : Vice President DirectorDirektur : Peter Chayson : DirectorDirektur : Rody Teo : DirectorDirektur Independen : Alex Kurniawan : Independent Director

Berdasarkan surat ketetapan No. 001/BOD-CEO/SK/072015 pada tanggal 27 Juli 2015, Entitas Induk menetapkan Peter Chayson sebagai Sekretaris Entitas Induk .

Based on the letter of Decree No. 001/BOD-CEO/SK/072015 dated on July 27, 2015, the Company assigned Peter Chayson as the Company’s Corporate Secretary.

Berdasarkan surat ketetapan No. 002/BOD-CEO/SK/072015 tanggal 27 Juli 2015, Direksi Perseroan menetapkan bahwa efektif sejak tanggal tersebut, fungsi Kepala Unit Audit Internal dijabat oleh Sumianty.

Based on the letter of Decree No. 002/BOD-CEO/SK/072015 dated on July 27, 2015, the Company's Directors determined that effective since that date, the function of the Head of Internal Audit Unit is held by Sumianty.

Berdasarkan surat ketetapan No. 001/BOC/SK/072015 pada tanggal 27 Juli 2015, Entitas Induk menetapkananggota komite audit Entitas Induk adalah sebagai berikut:

Based on the letter of Decree No. 001/BOC/SK/072015 dated on July 27, 2015, the Company assigned the members of the Company’s audit committee as follows:

Ketua : Susanto Setiono : ChairmanAnggota : Imam Supeno Djojokusumo : MemberAnggota : Siswantoro : Member

Berdasarkan surat ketetapan No. 003/BOC/SK/072015 pada tanggal 27 Juli 2015, Entitas Induk menetapkan, anggota komite nominasi dan remunerasi Entitas Indukadalah sebagai berikut:

Based on the letter of Decree No. 003/BOC/SK/072015 dated on July 27, 2015, the Company assigned the members of the Company’s nomination and remuneration committee as follows:

Ketua : Alfonso Djakaria Rahardja : ChairmanAnggota : Adjie Rustam Ramdja : MemberAnggota : Susanto Setiono : Member

— F-163 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

150

38. PERISTIWA SETELAH PERIODE PELAPORAN KEUANGAN (lanjutan)

38. EVENTS AFTER FINANCIAL REPORTING PERIOD (continued)

Perjanjian penjaminan emisi efek Underwriting agreement

Berdasarkan Akta Notaris No. 22 tanggal 11 September 2015 dari Jose Dima Satria S,H., M.Kn., Entitas Induk: 1. Menunjuk PT Credit Suisse Securities Indonesia

(CB), PT Deutsche Securities Indonesia (DB) dan PT Indo Premier Securities (IPS) sebagai penjamin pelaksana emisi efek.

2. Memperoleh pernyataan penjaminan atas pelaksanaan emisi efek dari CB, DB dan IPS.

Based on Notarial Deed No. 22 dated September 11, 2015 of Jose Dima Satria S,H., M.Kn., the Company:1. Assign PT Credit Suisse Securities Indonesia (CB),

PT Deutsche Securities Indonesia (DB) dan PT Indo Premier Securities (IPS) as underwriter.

2. Obtain assurance statement of execution of securities issuance from CB, DB and IPS.

39. PENERBITAN KEMBALI LAPORAN KEUANGANKONSOLIDASIAN

39. REISSUED CONSOLIDATED FINANCIAL STATEMENTS

Grup telah menerbitkan laporan keuangan konsolidasianuntuk periode enam bulan yang berakhir pada tanggal 30 Juni 2015 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011 serta periode enam bulan yang berakhir pada tanggal 30 Juni 2014 (tidak diaudit). Laporan keuangan konsolidasian untuk periode enam bulan yang berakhir pada tanggal 30 Juni 2015 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2014, 2013, 2012 dan 1 Januari 2012/31 Desember 2011 serta periode enam bulan yang berakhir pada tanggal 30 Juni 2014 (tidak diaudit) telah diaudit oleh Kantor Akuntan Publik Kosasih, Nurdiyaman, Tjahjo & Rekan dengan laporan auditor independen No. KNTR-C2.14.08.2015/05tanggal 14 Agustus 2015. Sehubungan dengan rencana Entitas Induk untuk melakukan Penawaran Umum PerdanaSaham maka laporan keuangan konsolidasian tersebut diterbitkan kembali dengan disertai perubahan maupun tambahan pengungkapan pada catatan atas laporan keuangan konsolidasian sebagai berikut:

Group issued their consolidated financial statements for six-month period ended June 30, 2015 and years ended December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011 and six-month period ended June 30, 2014 (unaudited). The consolidated financial statements for six-month period ended June 30, 2015 and years ended December 31, 2014, 2013, 2012 and January 1, 2012/December 31, 2011 and six-month period ended June 30, 2014 (unaudited) were audited by Kosasih, Nurdiyaman, Tjahjo & Rekan with independent auditors’ report No. KNTR-C2.14.08.2015/05 dated August 14, 2015. In relation with the Company’s plan to conduct InitialPublic Offering, the consolidated financial statements has been reissued with changes and additional disclosures in the notes to the consolidated financial statements as follows:

1. Laporan arus kas2. Perubahan dan tambahan pengungkapan pada:

a. Umum (Catatan 1c dan 1d)b. Prinsip-prinsip konsolidasian (Catatan 2b)c. Transaksi dengan pihak-pihak berelasi (Catatan

2d)d. Persediaan (Catatan 2e)e. Aset tetap (Catatan 2g)f. Investasi pada Entitas Asosiasi (Catatan 2h)g. Penurunan nilai aset non-keuangan (Catatan 2i)h. Imbalan Kerja Karyawan (Catatan 2j)i. Pengakuan pendapatan dan beban (Catatan 2k)j. Transaksi dan saldo dalam mata uang asing

(Catatan 2l)k. Sewa (Catatan 2n)l. Perpajakan (Catatan 2o)m. Pengukuran nilai wajar (Catatan 2q)n. Informasi segmen (Catatan 2r)o. Peristiwa setelah tanggal pelaporan (Catatan 2s)p. Laba per saham dasar yang diatribusikan kepada

pemilik Entitas Induk (Catatan 2t)q. Penyajian kembali atas laporan keuangan

konsolidasian (Catatan 4)r. Piutang usaha (Catatan 6)

1. Statements of cash flows2. Changes and additional disclosures on:

a. General (Notes 1c and 1d)b. Principles of Consolidation (Note 2b)c. Transactions with related parties (Note 2d)

d. Inventories (Note 2e)e. Fixed assets (Note 2g)f. Investment in Associates (Note 2h)g. Impairment of non-financial assets (Note 2i)h. Employees’ benefits(Note 2j)i. Revenue and expenses recognition (Note 2k)j. Foreign currency transactions and balances

(Note 2l)k. Lease (Note 2n)l. Taxation (Note 2o)m. Fair value measurement (Note 2q)n. Segment information (Note 2r)o. Events after reporting date (Note 2s)p. Basic earning per share attributable to owners

of the Parent Entity (Note 2t)q. Restatement on the consolidated financial

statements (Note 4)r. Trade receivables (Note 6)

— F-164 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

151

39. PENERBITAN KEMBALI LAPORAN KEUANGANKONSOLIDASIAN (lanjutan)

39. REISSUED CONSOLIDATED FINANCIAL STATEMENTS (continued)

s. Sifat, saldo dan transaksi dengan pihak-pihak berelasi (Catatan 7)

t. Persediaan (Catatan 8)u. Investasi pada Entitas Asosiasi (Catatan 12)v. Aset tetap (Catatan 14)w. Utang usaha (Catatan 16)x. Utang bank jangka panjang (Catatan 19)y. Utang pembiayaan konsumen (Catatan 20)z. Utang sewa pembiayaan (Catatan 21)aa. Liabilitas imbalan kerja karyawan (Catatan 22)bb. Manajemen risiko keuangan (Catatan 31)cc. Pengukuran nilai wajar (Catatan 33)dd. Ikatan dan perjanjian penting (Catatan 37)

ee. Penerbitan kembali laporan keuangan (Catatan 39)3. Informasi tambahan

s. Nature, balances and transactions with related parties (Note 7)

t. Inventories (Note 8)u. Investment in Associates (Note 12)v. Fixed assets (Note 14)w. Trade payables (Note 16)x. Long-term bank loans (Note 19)y. Consumer financing payables (Note 20)z. Finance lease payables (Note 21)aa. Liabilities for employees’ benefits (Note 22)bb. Financial risk management (Note 31)cc. Fair value measurement (Note 33)dd. Commitments and significant agreements (Note

37)ee. Reissued financial statements (Note 39)

3. Additional information

30 Juni 2015/June 30, 2015

Diterbitkan sebelumnya/ Diterbitkan As previosly Reklasifikasi/ kembali/ issued Reclassifications As re-issued

LAPORAN ARUS KAS STATEMENT OF CASH FLOW ARUS KAS DARI AKTIVITAS CASH FLOW FROM OPERATING OPERASI ACTIVITIES

Penerimaan dari pelanggan 1.445.701 (4.144 ) 1.441.557 Receipt from customersPembayaran kepada pemasok 856.040 13.297 869.337 Payment for suppliers

Pembayaran kepada beban Payment for selling, penjualan, umum dan general and administrative administrasi dan kegiatan expenses, and other operasi lainnya 340.164 (1.957 ) 338.207 operating activities Pembayaran kepada karyawan 185.334 (11.557 ) 173.777 Payment for employees Pembayaran bunga 42.853 (57 ) 42.910 Payment for interest Pembayaran pajak 17.365 (3.984 ) 13.381 Payment for taxes

31 Desember 2014/December 31, 2014

Diterbitkan

sebelumnya/ Diterbitkan As previosly Reklasifikasi/ kembali/ issued Reclassifications As re-issued LAPORAN ARUS KAS STATEMENT OF CASH FLOW ARUS KAS DARI AKTIVITAS CASH FLOW FROM OPERATING OPERASI ACTIVITIES

Penerimaan dari pelanggan 3.192.789 2.359 3.195.148 Receipt from customersPembayaran kepada pemasok 2.152.460 2.850 2.155.310 Payment for suppliers

Pembayaran kepada beban Payment for selling, penjualan, umum dan general and administrative administrasi dan kegiatan expenses, and other operasi lainnya 717.000 16.194 733.194 operating activities Pembayaran kepada karyawan 335.967 16.771 319.196 Payment for employees Pembayaran bunga 60.503 9 60.512 Payment for interest Pembayaran pajak 19.898 401 20.299 Payment for taxes

— F-165 —

The original consolidated financial statements included herein are in Indonesian language

PT KINO INDONESIA Tbk DAN ENTITAS ANAKCATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIANPeriode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk AND SUBSIDIARIESNOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions Rupiah,

unless otherwise stated)

152

39. PENERBITAN KEMBALI LAPORAN KEUANGAN (lanjutan)

39. REISSUED FINANCIAL STATEMENTS (continued)

31 Desember 2013/December 31, 2013

Diterbitkan sebelumnya/ Diterbitkan As previosly Reklasifikasi/ kembali/ issued Reclassifications As re-issued LAPORAN ARUS KAS STATEMENT OF CASH FLOW ARUS KAS DARI AKTIVITAS CASH FLOW FROM OPERATING OPERASI ACTIVITIES

Penerimaan dari pelanggan 2.194.062 84.359 2.278.421 Receipt from customersPendapatan bunga 634 (40) 594 Interest income

Pembayaran kepada pemasok 1.105.686 (91.301) 1.196.987 Payment for suppliers

Pembayaran kepada beban Payment for selling, penjualan, umum dan general and administrative administrasi dan kegiatan expenses, and other operasi lainnya 642.848 11.135 653.983 operating activities Pembayaran kepada karyawan 209.691 (18.189 ) 191.502 Payment for employees Pembayaran bunga 36.441 (104 ) 36.337 Payment for interest Pembayaran pajak 16.414 12 16.426 Payment for taxes

31 Desember 2012/December 31, 2012

Diterbitkan sebelumnya/ Diterbitkan As previosly Reklasifikasi/ kembali/ issued Reclassifications As re-issued

LAPORAN ARUS KAS STATEMENT OF CASH FLOW ARUS KAS DARI AKTIVITAS CASH FLOW FROM OPERATING OPERASI ACTIVITIES

Pembayaran kepada pemasok 926.352 11.328 937.680 Payment for suppliers Pembayaran kepada beban Payment for selling, penjualan, umum dan general and administrative administrasi dan kegiatan expenses, and other operasi lainnya 508.882 (11.360 ) 497.522 operating activities

40. INFORMASI KEUANGAN TERSENDIRI ENTITAS INDUK 40. THE COMPANY’S SEPARATE FINANCIAL STATEMENTS

Informasi keuangan tersendiri Entitas Induk menyajikan laporan posisi keuangan, laporan laba rugi dan penghasilan komprehensif lain, laporan perubahan ekuitas- bersih dan laporan arus kas, dimana penyertaan saham pada Entitas Anak dicatat dengan metode biaya.

Informasi keuangan tersendiri Entitas Induk disajikan sebagai lampiran pada laporan keuangan konsolidasian ini.

Separate financial information of the Company presents statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity - net and statement of cash flows, which the invetsment in Subsidiaries are recorded using cost method.

The separate financial information of the Company is presented as attachment to these consolidated financial statements.

— F-166 —

The original consolidated financial statements included herein are in Indonesian language

153

Lampiran I/Attachment I

PT KINO INDONESIA Tbk ENTITAS INDUK

LAPORAN POSISI KEUANGAN 30 Juni 2015, 31 Desember 2014, 2013, 2012

dan 1 Januari 2012/31 Desember 2011(Dinyatakan dalam jutaan Rupiah,

kecuali dinyatakan lain)

PT KINO INDONESIA Tbk PARENT ENTITY

STATEMENTS OF FINANCIAL POSITIONJune 30, 2015, December 31, 2014, 2013, 2012

and January 1, 2012/December 31, 2011(Expressed in millions Rupiah,

unless otherwise stated)

1 Januari 2012/ 31 Desember 2011/January 30 Juni 2015/ 31 Desember/December 31, 1, 2012/ June 30, December 31, 2015 2014*) 2013*) 2012*) 2011*)

ASET ASSETSASET LANCAR CURRENT ASSETSKas dan bank 9.823 15.909 43.479 6.117 5.243 Cash and banksPiutang usaha Trade receivables Pihak ketiga - bersih 8.512 7.781 162.659 229.465 213.084 Third parties - net Pihak berelasi 450.142 168.749 123.617 33.750 36.020 Related partiesPiutang lain-lain 2.272 2.703 2.627 1.464 1.768 Other receivablesPersediaan - bersih 199.337 227.033 155.704 157.757 121.296 Inventories - net Uang muka 12.148 35.281 44.007 23.198 21.010 AdvancesBeban dibayar di muka 12.224 12.103 5.553 1.821 687 Prepaid expenses

Jumlah Aset Lancar 694.458 469.559 537.646 453.572 399.108 Total Current Assets

ASET TIDAK LANCAR NON-CURRENT ASSETSDeposito yang dibatasi penggunaannya 791 709 1.136 2.188 791 Restricted depositsInvestasi pada Investment in Entitas Asosiasi 194.917 200.026 44.550 2.996 3.051 AssociatesBeban ditangguhkan 14.309 - - - Deferred chargesAset tetap - bersih 857.642 767.128 531.140 391.683 205.383 Fixed assets - net Aset pajak tangguhan 4.230 6.567 4.106 Deferred tax assets Estimated claim forTaksiran tagihan pajak 9.445 9.445 - - - tax refundPiutang pihak berelasi 6.590 1.818 - 4.221 2.135 Due from related partiesAset tidak lancar lainnya 5.090 2.583 920 1.517 2.377 Other non-current assets

Jumlah Aset Tidak Lancar 1.088.784 981.709 581.976 409.172 217.843 Total Non-Current Assets

JUMLAH ASET 1.783.242 1.451.268 1.119.622 862.744 616.951 TOTAL ASSETS

*) Telah disajikan kembali sehubungan dengan penerapan PSAK No. 24 (revisi 2013) yang berlaku efektif 1 Januari 2015 dan diterapkan secara retrospektif.

*) Have been restated in accordance with the implementation of PSAK No. 24 (revised 2013) which effective on January 1, 2015 and applied retrospectively.

— F-167 —

The original consolidated financial statements included herein are in Indonesian language

154

Lampiran II/Attachment II

PT KINO INDONESIA Tbk ENTITAS INDUK

LAPORAN POSISI KEUANGAN 30 Juni 2015, 31 Desember 2014, 2013, 2012

dan 1 Januari 2012/31 Desember 2011(Dinyatakan dalam jutaan Rupiah,

kecuali dinyatakan lain)

PT KINO INDONESIA Tbk PARENT ENTITY

STATEMENTS OF FINANCIAL POSITIONJune 30, 2015, December 31, 2014, 2013, 2012

and January 1, 2012/December 31, 2011(Expressed in millions Rupiah,

unless otherwise stated)

1 Januari 2012/ 31 Desember 2011/January 30 Juni 2015/ 31 Desember/December 31, 1, 2012/ June 30, December 31, 2015 2014*) 2013*) 2012*) 2011*)

LIABILITAS DAN LIABILITIES AND EKUITAS - BERSIH EQUITY - NET LIABILITAS JANGKA PENDEK CURRENT LIABILITIESUtang bank jangka pendek 298.543 302.547 230.201 184.188 173.600 Short-term bank loansUtang usaha - Trade payables - pihak ketiga 335.157 267.870 271.465 227.441 178.559 third partiesUtang dividen - - 7.874 8.319 - Dividend payablesUtang lain-lain 1.065 - 15.836 - Other payablesUtang pajak 38.334 11.148 6.938 4.893 6.188 Taxes payableBeban masih harus dibayar 68.838 35.993 - 6.759 10.943 Accrued expensesUang muka penjualan 907 1.278 2.065 464 201 Advances from customersBagian liabilitas jangka panjang yang jatuh tempo dalam waktu Current portion of satu tahun long-term liabilities Utang bank 46.238 30.656 30.525 42.633 29.176 Bank loans Utang pembiayaan Consumer financing konsumen 899 1.183 2.293 1.669 1.056 payables Finance lease Utang sewa pembiayaan 930 886 - - - payables

Jumlah Liabilitas Jangka Pendek 790.911 651.561 567.197 476.366 399.723 Total Current Liabilities

LIABILITAS JANGKA NON-CURRENT PANJANG LIABILITIESLiabilitas imbalan kerja Liabilities for employees’ karyawan 22.766 19.905 9.825 11.408 10.213 benefitsUtang pihak berelasi - - 8.069 8.089 14.439 Due to related partiesLiabilitas pajak tangguhan 5.563 294 - - - Deferred tax liabilitiesLiabilitas jangka panjang - setelah dikurangi bagian yang jatuh tempo Long-term liabilities dalam waktu satu tahun - net of current portion Utang bank 103.901 62.228 41.728 63.377 69.449 Bank loans Utang pembiayaan Consumer financing konsumen 182 373 887 861 27 payables Finance lease Utang sewa pembiayaan 275 742 - - - payables

Jumlah Liabilitas Jangka Panjang 132.687 83.542 60.509 83.735 94.128 Total Non-Current Liabilities

JUMLAH LIABILITAS 923.598 735.103 627.706 560.101 493.851 TOTAL LIABILITIES

*) Telah disajikan kembali sehubungan dengan penerapan PSAK No. 24 (revisi 2013) yang berlaku efektif 1 Januari 2015 dan diterapkan secara retrospektif.

*) Have been restated in accordance with the implementation of PSAK No. 24 (revised 2013) which effective on January 1, 2015 and applied retrospectively.

— F-168 —

The original consolidated financial statements included herein are in Indonesian language

155

Lampiran III/Attachment III

PT KINO INDONESIA Tbk ENTITAS INDUK

LAPORAN POSISI KEUANGAN 30 Juni 2015, 31 Desember 2014, 2013, 2012

dan 1 Januari 2012/31 Desember 2011(Dinyatakan dalam jutaan Rupiah,

kecuali dinyatakan lain)

PT KINO INDONESIA Tbk PARENT ENTITY

STATEMENTS OF FINANCIAL POSITIONJune 30, 2015, December 31, 2014, 2013, 2012

and January 1, 2012/December 31, 2011(Expressed in millions Rupiah,

unless otherwise stated)

1 Januari 2012/ 31 Desember 2011/January 30 Juni 2015/ 31 Desember/December 31, 1, 2012/ June 30, December 31, 2015 2014*) 2013*) 2012*) 2011*)

LIABILITAS DAN LIABILITIES AND EKUITAS - BERSIH EQUITY - NET

EKUITAS - BERSIH EQUITY - NET Ekuitas yang dapat Equity attributable diatribusikan kepada to owners of Parent pemilik Entitas Induk Entity Modal saham - nilai Share capital - nominal Rp 1.000.000 par value per saham (Rupiah Rp 1,000,000 per penuh) share (Full amount) Modal dasar - Authorized - 480.000 saham 480,000 shares tanggal 30 Juni as of June 30, 2015 dan 2015 and December 31 Desember 2014, 31, 2014 and 65,000 dan 65.000 saham shares as of tanggal 31 Desember December 31, 2013, 2013, 2012 dan 2012 and as of tanggal 1 Januari 2012/ January 1, 2012/ 31 Desember 2011 December 31,2011 Modal ditempatkan dan disetor penuh - Issued and fully 120.000 saham paid capital 120,000 tanggal 30 Juni shares as of June 30, 2015 dan 2015 and December 31 Desember 2014, 31, 2014 and 65,000 dan 65.000 saham shares as of tanggal 31 Desember December 31, 2013, 2013, 2012 dan 2012 and as of tanggal 1 Januari 2012/ January 1, 2012/ 31 Desember 2011 120.000 120.000 65.000 65.000 65.000 December 31, 2011 Penghasilan komprehensif Other comprehensive lain 418.212 396.328 293.395 151.897 (2.915) incomeSaldo laba Retained earnings Belum ditentukan penggunaannya 297.432 199.837 133.521 85.746 61.015 Unappropriated Telah ditentukan penggunaannya 24.000 - - - - Appropriated

JUMLAH EKUITAS - BERSIH 859.644 716.165 491.916 302.643 123.100 TOTAL EQUITY - NET

JUMLAH LIABILITAS DAN TOTAL LIABILITIES AND EKUITAS - BERSIH 1.783.242 1.451.268 1.119.622 862.744 616.951 EQUITY - NET

*) Telah disajikan kembali sehubungan dengan penerapan PSAK No. 24 (revisi 2013) yang berlaku efektif 1 Januari 2015 dan diterapkan secara retrospektif.

*) Have been restated in accordance with the implementation of PSAK No. 24 (revised 2013) which effective on January 1, 2015 and applied retrospectively.

— F-169 —

The original consolidated financial statements included herein are in Indonesian language

156

Lampiran IV/Attachment IV

PT KINO INDONESIA Tbk ENTITAS INDUK

LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN

Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2015 dan Tahun yang Berakhir pada

Tanggal-tanggal 31 Desember 2014, 2013 dan 2012 serta Periode Enam Bulan yang Berakhir pada

Tanggal 30 Juni 2014 (Tidak Diaudit) (Dinyatakan dalam jutaan Rupiah,

kecuali dinyatakan lain)

PT KINO INDONESIA Tbk PARENT ENTITY

STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Six-Month Period Ended June 30, 2015 and Years Ended December 31, 2014, 2013 and 2012

and Six-Month Period Ended June 30, 2014 (Unaudited)

(Expressed in millions of Rupiah, unless otherwise stated)

30 Juni/June 30, 31 Desember/December 31, 2015 2014 2014*) 2013*) 2012*)

PENJUALAN 1.350.737 1.159.633 2.347.669 1.948.890 1.584.650 SALESBEBAN POKOK PENJUALAN 778.196 728.608 1.474.522 1.198.739 970.443 COST OF SALES

LABA KOTOR 572.541 431.025 873.147 750.151 614.207 GROSS PROFIT

Beban penjualan (302.307) (278.312) (575.446 ) (518.693) (439.735 ) Selling expensesBeban umum dan General and administrative administrasi (75.320) (60.852) (131.685 ) (127.144) (100.728 ) expensesBeban bunga (25.936) (18.969) (43.915 ) (28.482) (27.966 ) Interest expenses Loss on foreign Rugi selisih kurs - bersih (4.830) (1.740) (6.119) (11.966) (3.175) exchange - netBagian atas laba (rugi) Share in net earning bersih Entitas Asosiasi (5.110) (2.918) 2.118 (446) (55) (losses) in Associates Bank administration Beban administrasi bank (1.373) (931) (2.349 ) (1.982) (1.757 ) expenses Gain on sale ofLaba penjualan aset tetap 648 1.183 1.602 338 8 fixed assetsLaba penjualan barang bekas 999 856 1.595 4.342 1.047 Gain on sale of scrapPendapatan bunga 127 57 141 88 40 Interest incomeLain-lain - bersih 6.187 3.064 9.717 2.793 1.232 Others - net

LABA SEBELUM BEBAN PAJAK INCOME BEFORE PENGHASILAN - INCOME TAX BERSIH 165.626 72.463 128.806 68.999 43.118 EXPENSES - NET

BEBAN PAJAK INCOME TAX PENGHASILAN - EXPENSES - BERSIH (43.058) (19.258) (30.317 ) (18.106) (11.658 ) NET

CURRENTLABA PERIODE/TAHUN CURRENT PERIOD/ BERJALAN 122.568 53.205 98.489 50.893 31.460 YEAR INCOME PENGHASILAN (BEBAN) OTHER KOMPREHENSIF COMPEHENSIVE LAIN 20.911 (5.120) 92.691 144.230 153.934 INCOME (EXPENSE)

LABA COMPREHENSIVE KOMPREHENSIF 143.479 48.085 191.180 195.123 185.394 INCOME

*) Telah disajikan kembali sehubungan dengan penerapan PSAK No. 24 (revisi 2013) yang berlaku efektif 1 Januari 2015 dan diterapkan secara retrospektif.

*) Have been restated in accordance with the implementation of PSAK No. 24 (revised 2013) which effective on January 1, 2015 and applied retrospectively.

— F-170 —

The original consolidated financial statements included herein are in Indonesian language

157

Lampiran V/Attachment V

PT KINO INDONESIA Tbk ENTITAS INDUK

LAPORAN PERUBAHAN EKUITAS - BERSIH Periode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk PARENT ENTITY

STATEMENTS OF CHANGES IN EQUITY - NETSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions of Rupiah,

unless otherwise stated)

Saldo Laba/Retained EarningsModal SahamDitempatkan

danDisetor Penuh/

Issued andFully Paid

Share Capital

Penghasilan komprehensif

lain/Othercomprehensive

income

Ditentukan penggunaan-

nya/Appropriated

Belum ditentukan penggunaa

nnya/Unappro-priated

Jumlah Ekuitas -Bersih/

Total Equity- Net

Saldo, 1 Januari 2012/31 Desember 2011(Disajikan kembali) 65.000 (2.915 ) - 61.015 123.100

Balance, January 1,

2012/December 31,

2011 (As restated)

Laba tahun berjalan - - - 31.460 31.460

Current yearincome

Penghasilan komprehensif lain - 154.812 - (879 ) 153.933

Othercomprehensive

income

Dividen kas - - - (5.850 ) (5.850 ) Cash dividend

Saldo, 31 Desember 2012(Disajikan kembali) 65.000 151.897 85.746 302.643

Balance, December 31,

2012 (As restated)

Laba tahun berjalan - - 50.893 50.893

Current yearincome

Penghasilan komprehensif lain - 141.498 - 2.732 144.230

Othercomprehensive

income

Dividen kas - - - (5.850 ) (5.850 ) Cash dividend

Saldo, 31 Desember 2013 (Disajikan kembali) 65.000 293.395 - 133.521 491.916

Balance, December 31,

2013 (As restated)

Penambahan modal

saham 55.000 - - - 55.000Addition of share

capital

Laba tahun berjalan - - - 53.205 53.205

Current yearincome

Penghasilan komprehensif lain - - - (5.120 ) (5.120 )

Othercomprehensive

income

Dividen kas - - - (21.931 ) (21.931 ) Cash dividend

Saldo, 30 Juni 2014 120.000 293.395 - 159.675 573.070

Balance, June 30, 2014

*) Telah disajikan kembali sehubungan dengan penerapan PSAK No. 24 (revisi 2013) yang berlaku efektif 1 Januari 2015 dan diterapkan secara retrospektif.

*) Have been restated in accordance with the implementation of PSAK No. 24 (revised 2013) which effective on January 1, 2015 and applied retrospectively.

— F-171 —

The original consolidated financial statements included herein are in Indonesian language

158

Lampiran VI/Attachment VI

PT KINO INDONESIA Tbk ENTITAS INDUK

LAPORAN PERUBAHAN EKUITAS - BERSIH Periode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk PARENT ENTITY

STATEMENTS OF CHANGES IN EQUITY - NETSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions of Rupiah,

unless otherwise stated)

Saldo Laba/Retained EarningsModal SahamDitempatkan

danDisetor Penuh/

Issued and Fully Paid

Share Capital

Penghasilan komprehensif

lain/Othercomprehensive

income

Ditentukan penggunaan-

nya/Appropriated

Belum ditentukan penggunaa

nnya/Unappro-priated

Jumlah Ekuitas -Bersih/

Total Equity- Net

Saldo, 31 Desember 2013 (Disajikan kembali) 65.000 293.395 - 133.521 491.916

Balance, December 31,

2013 (As restated)

Penambahan modal

saham 55.000 - - - 55.000Addition of share

capital

Laba tahun berjalan - - - 98.489 98.489

Current yearincome

Penghasilan komprehensif lain - 102.933 - (10.242 ) 92.691

Othercomprehensive

income

Dividen kas - - - (21.931 ) (21.931 ) Cash dividend

Saldo, 31 Desember 2014(Disajikan kembali) 120.000 396.328 - 199.837 716.165

Balance, December 31,

2014 (As restated)

Laba tahun berjalan - - - 122.568 122.568

Current yearincome

Cadangan umum - - 24.000 (24.000 ) -

Appropriation ofgeneral

reserves

Penghasilan komprehensif lain - 21.884 - (973 ) 20.911

Othercomprehensive

income

Saldo, 30 Juni 2015 120.000 418.212 24.000 297.432 859.644

Balance, June 30, 2015

*) Telah disajikan kembali sehubungan dengan penerapan PSAK No. 24 (revisi 2013) yang berlaku efektif 1 Januari 2015 dan diterapkan secara retrospektif.

*) Have been restated in accordance with the implementation of PSAK No. 24 (revised 2013) which effective on January 1, 2015 and applied retrospectively.

— F-172 —

The original consolidated financial statements included herein are in Indonesian language

159

Lampiran VII/Attachment VII

PT KINO INDONESIA Tbk ENTITAS INDUK

LAPORAN ARUS KAS Periode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk PARENT ENTITY

STATEMENTS OF CASH FLOWSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions of Rupiah,

unless otherwise stated)

30 Juni/June 30, 31 Desember/December 31, 2015 2014 2014*) 2013*) 2012*)

ARUS KAS DARI CASH FLOWS FROM AKTIVITAS OPERATING OPERASI ACTIVITIESPenerimaan dari pelanggan 1.068.250 1.037.470 2.457.483 1.926.575 1.570.802 Receipt from customersPendapatan bunga 127 57 141 88 40 Interest incomePembayaran kepada pemasok (603.041) (739.353) (1.400.401 ) (1.052.222) (876.315 ) Payment to suppliersPembayaran beban Payment for selling, penjualan, general and umum dan administrasi, administrative expenses,

dan kegiatan operasi and other operating lainnya (293.520) (245.209) (618.024 ) (567.590) (478.957 ) activitiesPembayaran kepada karyawan (107.900) (48.271) (188.887 ) (144.750) (109.962 ) Payment to employeesPembayaran bunga (25.935) (18.969) (43.915 ) (28.482) (27.966 ) Payment for interestPembayaran pajak (10.278) (1.025) (18.169) (14.636) (15.119) Payment for taxes

Kas Bersih Diperoleh dari Net Cash Flows (Digunakan untuk) Provided by Aktivitas (Used for) Operating Operasi 27.703 (15.300) 188.228 118.983 62.523 Activities

ARUS KAS DARI CASH FLOWS FROM AKTIVITAS INVESTING INVESTASI ACTIVITIESPembelian aset tetap (79.567) (74.790) (170.337 ) (49.240) (70.643 ) Acquisition of fixed assetsPenambahan aset Addition of other tidak lancar lainnya (2.286) - (175 ) - non-current assetsPenempatan deposito yang Placement of restricted

dibatasi penggunaannya (568) (1.471) (3.807) (12.679) (9.446) depositsPenjualan aset tetap 1.062 1.774 2.449 863 34 Sale of fixed assetsPencairan deposito yang Redemption of restricted

dibatasi penggunaannya 486 1.947 4.235 13.730 8.049 depositsAkuisisi Entitas Anak - (13.649) (157.101 ) - - Acquisition of SubsidiariesLikuidasi Entitas Asosiasi - - 3.743 - - Liquidation of AssociatesPenyertaan saham pada Entitas Asosiasi - - - (42.000) - Investment in Associates

Kas Bersih Digunakan Net Cash Flows untuk Aktivitas Used for Investing Investasi (80.873) (86.189) (320.993) (89.326) (72.006) Activities

ARUS KAS DARI CASH FLOWS FROM AKTIVITAS FINANCING PENDANAAN ACTIVITIESPenerimaan utang bank Proceed from short-term jangka pendek 106.968 108.000 214.421 107.700 18.430 bank loansPenerimaan utang bank Proceed from long-term jangka panjang 75.000 21.502 54.452 8.876 40.000 bank loansPembayaran utang bank Payment of short-term jangka pendek (110.971) (59.092) (142.075 ) (61.687) (7.841 ) bank loans Pembayaran utang bank Payment of long-term jangka panjang (17.746) (10.437) (33.821 ) (42.633) (32.617 ) bank loansPembayaran kepada Payment to pihak berelasi (4.878) (20.363) (9.886 ) - (2.086) related partiesPembayaran utang pembiayaan Payment of customer konsumen (866) (1.222) (2.436 ) (2.458) (1.647 ) financing payablesPembayaran utang sewa Payment of finance pembiayaan (423) - (655 ) lease payablesPenambahan modal disetor - 55.000 55.000 - - Additional of share capitalPenerimaan dari Proceed from pihak berelasi - 7.578 - 4.201 - related parties Pembayaran dividen - (26.948) (29.805 ) (6.294) (3.882 ) Payment of dividend

— F-173 —

The original consolidated financial statements included herein are in Indonesian language

160

Lampiran VIII/Attachment VIII

PT KINO INDONESIA Tbk ENTITAS INDUK

LAPORAN ARUS KAS Periode Enam Bulan yang Berakhir pada Tanggal

30 Juni 2015 dan Tahun yang Berakhir pada Tanggal-tanggal 31 Desember 2014, 2013 dan 2012

serta Periode Enam Bulan yang Berakhir pada Tanggal 30 Juni 2014 (Tidak Diaudit)

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT KINO INDONESIA Tbk PARENT ENTITY

STATEMENTS OF CASH FLOWSSix-Month Period Ended June 30, 2015 and

Years Ended December 31, 2014, 2013 and 2012 and Six-Month Period Ended

June 30, 2014 (Unaudited)(Expressed in millions of Rupiah,

unless otherwise stated)

30 Juni/June 30, 31 Desember/December 31, 2015 2014 2014*) 2013*) 2012*)

Net Cash FlowsKas Bersih Diperoleh dari Provided by Aktivitas Pendanaan 47.084 74.018 105.195 7.705 10.357 Financing Activities

KENAIKAN (PENURUNAN) NET INCREASE BERSIH KAS DAN (DECREASE) IN

BANK (6.086) (27.471) (27.570) 37.362 874 CASH AND BANKS

CASH AND BANKSKAS DAN BANK AWAL AT BEGINNING OF

PERIODE/TAHUN 15.909 43.479 43.479 6.117 5.243 THE PERIOD/YEAR

CASH AND BANKSKAS DAN BANK AKHIR AT END OF

PERIODE/TAHUN 9.823 16.008 15.909 43.479 6.117 THE PERIOD/YEAR

*) Telah disajikan kembali sehubungan dengan penerapan PSAK No. 24 (revisi 2013) yang berlaku efektif 1 Januari 2015 dan diterapkan secara retrospektif.

*) Have been restated in accordance with the implementation of PSAK No. 24 (revised 2013) which effective on January 1, 2015 and applied retrospectively.

— F-174 —

REGISTERED OFFICE

PT Kino Indonesia TbkJalan Cibolerang 203 Kav. 23

Bandung, West Java 40225Indonesia

LEGAL ADVISORS TO OUR COMPANY

as to United States federal securities law as to Indonesian law

Herbert Smith Freehills LLP50 Raffles Place

#24-01 Singapore Land TowerSingapore 048623

Hiswara Bunjamin & Tandjung23rd Floor, Gedung BRI II

Jl. Jend. Sudirman Kav. 44-46Jakarta 10210

Indonesia

LEGAL ADVISORS TO THE JOINT INTERNATIONAL SELLING AGENTS

as to United States federal securities law as to Indonesian law

Clifford Chance Pte. Ltd.12 Marina Boulevard, 25th Floor

Marina Bay Financial Centre, Tower 3Singapore 018982

Melli Darsa & Co.Menara Standard Chartered, 19th Floor

Jl. Prof. Dr. Satrio No. 164Jakarta 12930

Indonesia

INDEPENDENT PUBLIC ACCOUNTANTS

Kosasih, Nurdiyaman, Tjahjo & Rekan (a member firm of Crowe Horwath International)Gedung Jaya, 1st Floor, Suite L01-A3

Jl. M.H. Thamrin No. 12Jakarta 10340

Indonesia