INFO MEMOINFO MEMO

20162016PTPT ARWANAARWANA CITRAMULIACITRAMULIA TbkTbk

To be the BestThe Top Ceramic TileThe Top Ceramic Tile ManufacturerManufacturer in 2016in 2016

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ll. €)

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Tile p

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Main

TileBra

nds /

Comp

anies

225-245 225-245 n.a.

2 SCG Group Thailand 206.0 225.0 11 755.0

907.0(tiles +

sanitaryware)

21 Thailand, 7Vietnam,

4 Indonesia, 1Philippines

Cotto, Prime,Mariwasa,

Sosuco,Campana, Kia,

DK, Trend

3 Lamosa Mexico 105-110(estimates)

140.0 19 551.0 n.a. 10 in Mexico

Lamosa,Porcelanite,

Firenze, Italica,Verve

4 Rak UAE 92.0 113.0 79 490.0

755.0(tiles sanitary

+tableware)

14 UAE, 1Bangladesh,

1 China, 1 India,1 Iran

RAK Ceramics,Elegance

5 Ceramica Carmelo Fior Brazil 80.0 80.0 12 172.0 172.0 4 in BrazilCecafi,

Pisoforte,Fioranno,

Idealle, Ariella

6 Grupo Fragnani Brazil 65.5 72.0 4 157.0 157.0 3 in BrazilIncefra, Incenor,

Tecnogres,Luxory

7 Grupo Cedasa Brazil 63.0 70.0 10 n.a. n.a. 1 in Brazil

Majopar,Cedasa,

Vistabella,Lorenzza

8 Pamesa Spain 60.3 60.3 79 312.0 424.0(tiles, other)

6 in SpainPamesa,

Pamesa Brazil

9 Kajaria India59.0

62.1 2 332.0342.0(tiles,

sanitaryware)11 in India Kajaria

10 Rovese Poland58.0

(estimates)68.7 n.a. n.a.

418.0(2014:tiles,

sanitaryware,others)

10 in Poland,Russia,

Romania, UK,Germany

Cersanit,Opoczno,

MeissenKeramik,

Pilkington, Mito19 Arwana Citramulia Indonesia 43.0 49.3 0 90.0 90.0 5 in Indonesia Arwana, UNO

AmericanOlean, Dal Tile,

KAI, KaremaMarazzi,

Marazzi, Ragno.estimates on official company data

USAMohawk Industries, Inc1 $ 3,013 mill.

$ 8,072 mill.(tiles, carpet,laminate &

wood)

17 in NorthAmerica,Mexico,Europe, Russia,

Grou

p /C

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ny

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(mill.

M2)

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lled

capa

city

(mill.

M2)

Expo

rts sh

are

Turno

ver o

nly TI

LEse

gmen

t (mi

ll. €)

Tota

l turno

ver

(mill.

€)

Tile p

lants

/Lo

catio

n

Main

TileBra

nds /

Comp

anies

225-245 225-245 n.a.

2 SCG Group Thailand 206.0 225.0 11 755.0

907.0(tiles +

sanitaryware)

21 Thailand, 7Vietnam,

4 Indonesia, 1Philippines

Cotto, Prime,Mariwasa,

Sosuco,Campana, Kia,

DK, Trend

3 Lamosa Mexico 105-110(estimates)

140.0 19 551.0 n.a. 10 in Mexico

Lamosa,Porcelanite,

Firenze, Italica,Verve

4 Rak UAE 92.0 113.0 79 490.0

755.0(tiles sanitary

+tableware)

14 UAE, 1Bangladesh,

1 China, 1 India,1 Iran

RAK Ceramics,Elegance

5 Ceramica Carmelo Fior Brazil 80.0 80.0 12 172.0 172.0 4 in BrazilCecafi,

Pisoforte,Fioranno,

Idealle, Ariella

6 Grupo Fragnani Brazil 65.5 72.0 4 157.0 157.0 3 in BrazilIncefra, Incenor,

Tecnogres,Luxory

7 Grupo Cedasa Brazil 63.0 70.0 10 n.a. n.a. 1 in Brazil

Majopar,Cedasa,

Vistabella,Lorenzza

8 Pamesa Spain 60.3 60.3 79 312.0 424.0(tiles, other)

6 in SpainPamesa,

Pamesa Brazil

9 Kajaria India59.0

62.1 2 332.0342.0(tiles,

sanitaryware)11 in India Kajaria

10 Rovese Poland58.0

(estimates)68.7 n.a. n.a.

418.0(2014:tiles,

sanitaryware,others)

10 in Poland,Russia,

Romania, UK,Germany

Cersanit,Opoczno,

MeissenKeramik,

Pilkington, Mito19 Arwana Citramulia Indonesia 43.0 49.3 0 90.0 90.0 5 in Indonesia Arwana, UNO

AmericanOlean, Dal Tile,

KAI, KaremaMarazzi,

Marazzi, Ragno.estimates on official company data

USAMohawk Industries, Inc1 $ 3,013 mill.

$ 8,072 mill.(tiles, carpet,laminate &

wood)

17 in NorthAmerica,Mexico,Europe, Russia,

Total CapacityTotal CapacityTo be the Best 2013 : 49,370,000 sqm/year

+8,000,000 sqm/year - Plant 4A

2016 : 57,370,000 sqm/year+8,000,000 sqm/year - Plant 5A

2018 : 63,870,000 sqm/year+6,000,000 sqm/year - Plant 5B

2019 : 69,370,000 sqm/year+6,000,000 sqm/year - Plant 4B

2020 : 75,370,000 sqm/year+6,000,000 sqm/year - Plant 5C

2013 : 49,370,000 sqm/year+8,000,000 sqm/year - Plant 4A

2016 : 57,370,000 sqm/year+8,000,000 sqm/year - Plant 5A

2018 : 63,870,000 sqm/year+6,000,000 sqm/year - Plant 5B

2019 : 69,370,000 sqm/year+6,000,000 sqm/year - Plant 4B

2020 : 75,370,000 sqm/year+6,000,000 sqm/year - Plant 5C

To be the BestISO 14001:2004Environmental Management System

ISO 9001:2000Quality Management System

ISO 13006:2010Ceramic tiles Definitions, classification,characteristics and marking

Plant I : June 22, 2012Plant II : September 21, 2011

Plant III : September 19, 2007

Plant I : November 21, 2002Plant II : April 26, 2007

Plant III : January 16, 2013

Plant V : March 28, 2016Plant IV : April 22, 2015Plant III : Januari 29, 2014

Plant I : May 07, 2013Plant II : May 07, 2013

2014 2013

To be the BestGreen Industry AwardGreen Industry Award

2012 2011

2015

To be the Best

Asia’s Best Companies 2015Best Managed Company & Most

Committed to Paying Good Dividends2014, 2015

Trifecta AwardFor Winning Three years in a Row

November 26, 2015

Certificate of Appreciation AwardFrom Indonesian Directorate of Taxes

April 23, 2015

Green Industry Award2011, 2012, 2013, 2014, 2015

Best of the Best AwardThe Top 50 Companies

2013, 2014, 2015

Capital Market Award 2014Best Stock Issuer

With Market CapitalizationUp To IDR 10 Trillion

May 13, 2014

Rekor Bisnis (ReBi)Ceramic Industry with the Most Factory

Location in Indonesia2010, 2011, 2013, 2014

Indonesia World-RecordFirst Ceramic IndustryThat Received Green IndustryCertificate fromthe Ministry of Industry &Ceramic Industry withthe Most Factory Locationof Republic of IndonesiaOctober 29, 2013

Forbes AsiaBest Under a Billion Dollar

December 9, 2014

Arwana Vision

To be the best companyin the ceramic tilesindustry,full of creativity andinnovation,and able to contribute tothe development of thecountry and the society

To be the best companyin the ceramic tilesindustry,full of creativity andinnovation,and able to contribute tothe development of thecountry and the society

1995Plant I, Tangerang

Plant IV, Ogan Ilir2013

Plant V, Mojokerto

Creativity5 Different Locations5 Different Locations

2015

2000

Plant III, Gresik

1997

Plant II, Serang

Sumatera2011= 10 & 2,6842012= 10 & 3,0822013= 10 & 3,4102014= 11 & 3,9742015= 11 & 4,201

Kalimantan2011= 5 & 1,4252012= 5 & 1,5602013= 5 & 1,7562014= 5 & 2,0452015= 5 & 2,203

Sulawesi2011= 4 & 7362012= 5 & 8662013= 5 & 9592014= 5 & 1,0732015= 5 & 1,126

Arwana’s Distributors & Outlets 2011-2015

Sorong

2015= 1 & 1

Creativity

Jayapura2011= 1 & 152012= 1 & 212013= 1 & 292014= 1 & 292015= 1 & 30

Jawa & Bali2011= 20 & 9,1952012= 20 & 10,1042013= 20 & 11,2992014= 21 & 13,4872015= 21 & 14,275

Ambon2011= 1 & 292012= 1 & 352013= 1 & 402014= 1 & 402015= 1 & 45

NUMBER OF SUB DISTRIBUTORS & OUTLETS2011 = 41 Sub Distributor & 14,084 outlet (18%)2012 = 42 Sub Distributor & 15,668 outlet (11%)2013 = 42 Sub Distributor & 17,493 outlet (12%)2014 = 44 Sub Distributor & 20,648 outlet (18%)2015 = 45 Sub Distributor & 21,881 outlet (5,9%)

Sorong

2015= 1 & 1

CreativityArwanaArwana’’ss Capacity ExpansionCapacity Expansion

1995

1997

2002

2004

2005

2006

2007

2009

2010

2011

2013

2015

2017

2018

2020

Year

40,870

41,370

57,370

63,370

69,370

75,370

49,370

Plant 3C Phase 2; Plant 2C Extension

Plant 2A Upgrade

Plant 4A

Plant 5A

Plant 5B

Plant 4B

Plant 5C

300 B300 B

300 B150 B2019

2018

2016

1995

1997

2002

2004

2005

2006

2007

2009

2010

2011

2013

2015

2017

2018

2020

Year

Installed Capacity(In Thousand m2)

27,400

22,400

17,370

12,040

2,800

7,490

10,775

40,870

34,280

Plant 1

Plant 2A

Plant 3A

Plant 2 Equipment Upgrade

Plant 3B

Plant 2B Phase 1

Plant 2C Phase 2

Plant 3C Phase 1

Plant 3C Phase 2; Plant 2C Extension

1,050 B2015 – 2020 :

Plant 1 Plant 2 Plant 3 Plant 4 Plant 5

11

Plant ITangerang, Banten (Operated June 1995) Starting Capacity: 2,880,000 sqm / year Current Capacity : 3,780,000 sqm / year ISO 9001 : 2000 Certified ISO 14001 : 2012 Certified

12

Plant IISerang, Banten (Operated July 1997) Starting Capacity : 4,500,000 sqm / year Current Capacity : 19,500,000 sqm / year ISO 9001 : 2000 Certified ISO 14001 : 2011 Certified

13

Plant IIIWringin Anom-Gresik, East Java(Operated May 2002) Starting Capacity : 3,600,000 sqm / year Current Capacity : 18,090,000 sqm / year ISO 9001 : 2007 Certified ISO 14001 : 2013 Certified

14

Ogan Ilir, South Sumatera(Operated September 2013)Current Capacity : 8,000,000 sqm / year SNI - ISO 13006 : 2010 Certified

Plant IV

ISO 9001 : 2008

15

Mojokerto, East Java(Operated January 2016)Current Capacity : 8,000,000 sqm / year

Plant V

SNI - ISO 13006 : 2010 Certified

Plant V

Plant V

1616

Plant V

1717

Arwana Vision

To be the best companyin the ceramic tilesindustry,full of creativity andInnovation,and able to contribute tothe development of thecountry and the society

To be the best companyin the ceramic tilesindustry,full of creativity andInnovation,and able to contribute tothe development of thecountry and the society

Innovation

Heat Recovery Heat Recovery

Multi Mill Continues (MMC)

To be the best companyin the ceramic tiles industry,full of creativity andinnovation,and able to contribute to thedevelopment of the countryand the society

Arwana Vision

To be the best companyin the ceramic tiles industry,full of creativity andinnovation,and able to contribute to thedevelopment of the countryand the society

Free Medical CareWorship Place

Renovation House Renovation

ContributeCorporate Social ResponsibilityCorporate Social Responsibility

2121

Scholarship

Blood DonationSchool Renovation

School Supplies Donation

Homecoming ProgramHomecoming Program

Orphanage Charity

GrowthStrategy Environment

Energy

Product

Technology

Human Resources

Environment

Energy

Product

Technology

Human Resources

Plant I Plant II

Environment

Plant III Plant IV

Plant V

EnergyProduction CostProduction Cost

29% 28% 27% 26% 25% 27% 29%

34% 35% 37% 40% 42%43% 42%

22% 23% 23% 22% 21% 19% 18%

15% 14% 13% 12% 12% 11% 11%

0%

20%

40%

60%

80%

100%

2010 2011 2012 2013 2014 2015 2016

Body Glaze Energy Other

29% 28% 27% 26% 25% 27% 29%

34% 35% 37% 40% 42%43% 42%

22% 23% 23% 22% 21% 19% 18%

15% 14% 13% 12% 12% 11% 11%

0%

20%

40%

60%

80%

100%

2010 2011 2012 2013 2014 2015 2016

Body Glaze Energy Other

(Q3)

Energy Cost

ReductionThroughHeat Recovery andMulti Layer HD

Energy

Energy Cost

Efficiency withMulti Mill

Continues(MMC)

Product (Capacity Utilization)

17.2%35.9%

9.7%

20.3%3.3%

10.5%7.12%

11%

15.1%

19.3%

2001(IPO) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(Q3)

Production(in thousandsqm)

6.489 17.202 23.379 27.397 30.045 36.143 37.349 41.259 44.197 49.082 41.663 36.717

InstalledCapacity (inthousandsqm)

7.175 19.725 23.981 28.962 31.855 38.870 40.870 41.370 49.370 49.370 49.370 43.028

CapacityUtilization 90,44%

87% (Gasshortagein Plant 1

& 3)

97%

94%(MachineModification in Plant

1 & 2)

94% (HeatRecovery inPlant 2B &

3AB)

93%(Ramadhan Holiday)

91%(MachineryInstallation)

100%

Plant 1,2,3Utility 103%

Plant 4Utility 65%

Plant 1,2,3Utility 101%

Plant 4Utility 92%

84%

Plant 1,2,3,4Utility 91%

Plant 5Utility 79%

Heat Recovery

Technology

Kiln SPR System

Horizontal Dryer

Technology

Digital Printing

1. Corporate2. Plant I3. Plant II4. Plant III5. Plant IV6. Plant V

1. 2. 3.

Human Resources

2929

In HouseTraining

5.4.

Human ResourcesArwanaArwana ManagementManagementArwanaArwana ManagementManagement

Edy Suyanto, S.E.Chief Operating Officer1996 - Current

Tandean Rustandy, M.BA.Chief Executive Officer1993 - Current

Ir. Rudy SujantoChief Financial Officer2009 - Current

Hatta Syafrudin S.H, M.SiIndependent Director2015 - Current

3030

Agustinus Kusnadi, SEV. P. Financial Controller2007 - Current

Rally Sudarta B. ComV.P. HR & GA2007 - Current

Ir. Lim Tjhiu IongV.P. Operation1994 - Current

Renny A. Sandi, SEV. P. Marketing2000 - Current

V.P. ProcurementLi Sufan Sufendi , ST

2014 - Current

Human ResourcesArwanaArwana Corporate StructureCorporate StructureArwanaArwana Corporate StructureCorporate Structure

3131

FINANCIAL PERFORMANCEFINANCIAL PERFORMANCE

3232

Net Sales & Net Profit20052005 -- 20162016

11%

21%

27%

13%

20%

20%

3333

8%

51%

28%10%

16%

20% 54% 26% 19% 23% 20%64%

50% 10%

73% 15%

CONSOLIDATED INCOME STATEMENT2013 2014 2015 2016 (Q3)

NET SALES 1.417.640 1.609.759 1.291.926 1.103.46631.981 33.255 32.645 32.291

COST OF GOODS SOLD 915.440 1.087.606 1.003.838 874.74120.652 22.468 25.365 25.598

GROSS PROFIT 502.200 522.153 288.088 228.72535,4% 32,4% 22,30% 20,73%

OPERATING EXPENSESSelling 115.894 134.546 137.713 107.945

2.614 2.780 3.480 3.159General and Administrative 41.944 39.998 40.807 33.495Total Operating Expenses 157.838 174.544 178.520 141.439

3.561 3.606 4.511 4.139INCOME FROM OPERATION 344.362 347.609 109.568 87.285

24,3% 21,60% 8,50% 7,91%OTHER INCOME (EXPENSE)

Gain (loss) on foreign exchange (24.999) (799) (9.237) 5.465Finance Income 2.370 2.321 1.617 37Finance Costs (7.317) (5.768) (8.485) (12.373)Others 1.934 5.322 2.051 2.925Total Other Income (Expense) (28.012) 1.076 (14.054) (3.946)

(632) 22 (355) (115)INCOME BEFORE INCOME TAX 316.350 348.685 95.514 83.340INCOME TAX EXPENSES -net 78.652 86.805 24.304 21.647NET INCOME BEFORE MINORITY INTERESTSON CONSOLIDATED NET INCOME OF SUBSIDIARIES 237.698 261.880 71.210 61.693

MINORITY INTERESTS ON CONSOLIDATED 2.534 2.365 1.428 803NET INCOME OF SUBSIDIARIESNET INCOME 235.164 259.515 69.782 60.890

16,6% 16,10% 5,40% 5,5%Total Sales (m2) 44.328.000 48.406.497 39.575.497 34.172.755Total Production (m2) 44.196.999 49.082.179 41.663.484 36.717.420

3434

CONSOLIDATED INCOME STATEMENT2013 2014 2015 2016 (Q3)

NET SALES 1.417.640 1.609.759 1.291.926 1.103.46631.981 33.255 32.645 32.291

COST OF GOODS SOLD 915.440 1.087.606 1.003.838 874.74120.652 22.468 25.365 25.598

GROSS PROFIT 502.200 522.153 288.088 228.72535,4% 32,4% 22,30% 20,73%

OPERATING EXPENSESSelling 115.894 134.546 137.713 107.945

2.614 2.780 3.480 3.159General and Administrative 41.944 39.998 40.807 33.495Total Operating Expenses 157.838 174.544 178.520 141.439

3.561 3.606 4.511 4.139INCOME FROM OPERATION 344.362 347.609 109.568 87.285

24,3% 21,60% 8,50% 7,91%OTHER INCOME (EXPENSE)

Gain (loss) on foreign exchange (24.999) (799) (9.237) 5.465Finance Income 2.370 2.321 1.617 37Finance Costs (7.317) (5.768) (8.485) (12.373)Others 1.934 5.322 2.051 2.925Total Other Income (Expense) (28.012) 1.076 (14.054) (3.946)

(632) 22 (355) (115)INCOME BEFORE INCOME TAX 316.350 348.685 95.514 83.340INCOME TAX EXPENSES -net 78.652 86.805 24.304 21.647NET INCOME BEFORE MINORITY INTERESTSON CONSOLIDATED NET INCOME OF SUBSIDIARIES 237.698 261.880 71.210 61.693

MINORITY INTERESTS ON CONSOLIDATED 2.534 2.365 1.428 803NET INCOME OF SUBSIDIARIESNET INCOME 235.164 259.515 69.782 60.890

16,6% 16,10% 5,40% 5,5%Total Sales (m2) 44.328.000 48.406.497 39.575.497 34.172.755Total Production (m2) 44.196.999 49.082.179 41.663.484 36.717.420

1Q - 16 1Q - 15 % 2Q - 16 2Q - 15 % 3Q - 16 3Q - 15 %

NET SALES 390.403.430.667 358.973.573.636 8,76% 358.153.820.270 276.372.994.990 29,59% 354.908.661.879 284.542.866.795 24,73%32.201 33.903 -5,02% 32.127 32.216 -0,28% 32.558 31.830 2,29%

COST OF GOODS SOLD 312.035.246.336 252.594.075.477 23,53% 283.692.710.517 216.879.161.918 30,81% 279.013.299.588 231.214.219.300 20,67%25.737 23.856 7,88% 25.447 25.281 0,66% 25.596 25.865 -1,04%

GROSS PROFIT 78.368.184.331 106.379.498.159 -26,33% 74.461.109.753 59.493.833.072 25,16% 75.895.362.291 53.328.647.495 42,32%20,1% 29,6% 20,8% 21,5% 21,4% 18,7%

OPERATING EXPENSE 2.905 3.554 -18,25% 3.156 3.389 -6,87% 3.443 3.449 -0,16%Selling 35.222.122.943 37.626.240.431 -6,39% 35.186.038.082 29.072.844.814 21,03% 37.536.465.215 30.832.862.196 21,74%General and Administrative 11.929.637.993 11.840.371.986 0,75% 11.246.358.717 11.006.472.124 2,18% 10.318.860.274 10.433.775.193 -1,10%Total Operating Expense 47.151.760.936 49.466.612.417 -4,68% 46.432.396.799 40.079.316.938 15,85% 47.855.325.489 41.266.637.389 15,97%

3.889 4.672 -16,75% 4.165 4.672 -10,85% 4.390 4.616 -4,90%INCOME FROM OPERATION 31.216.423.395 56.912.885.742 -45,15% 28.028.712.954 19.414.516.134 44,37% 28.040.036.802 12.062.010.106 132,47%

8,0% 15,9% 7,8% 7,0% 7,9% 4,2%

OTHER INCOME (EXPENSE)Interest Expense (2.766.844.174) (877.260.957) -215,40% (3.002.437.287) (1.296.823.397) -131,52% (6.566.296.366) (1.807.990.158) 263,18%Gain (Loss) on foreign exchange 2.973.638.690 (3.743.299.395) 179,44% 3.169.329.634 (2.279.950.989) 239,01% (678.280.211) (8.366.143.514) -91,89%Others 434.231.951 1.018.616.855 -57,37% 1.117.530.810 1.345.117.816 -16,92% 1.373.494.545 (445.219.902) -408,50%Total Other Income (Expense) 641.026.467 (3.601.943.497) -117,80% 1.284.423.157 (2.231.656.570) -157,55% (5.871.082.032) (10.619.353.574) -44,71%

INCOME BEFORE INCOME TAX 31.857.449.862 53.310.942.245 -40,24% 29.313.136.111 17.182.859.564 70,60% 22.168.954.770 1.442.656.532 1436,68%8,2% 14,9% 8,2% 6,2% 6,2% 0,5%

INCOME TAX EXPENSECurrent 8.821.702.800 14.030.929.251 -37,13% 8.310.366.000 4.870.883.551 70,61% 6.349.035.350 1.360.008.973 366,84%Deferred (593.091.055) (659.475.661) -10,07% (732.631.926) (657.268.154) 11,47% (508.817.573) (710.253.090) -28,36%

INCOME TAX EXPENSE 8.228.611.745 13.371.453.590 -38,46% 7.577.734.074 4.213.615.397 79,84% 5.840.217.777 649.755.883 798,83%

NET INCOME BEFORE MINORITY INTERESTSON CONSOLIDATED NET INCOME OF SUBS 23.628.838.117 39.939.488.655 -40,84% 21.735.402.037 12.969.244.167 67,59% 16.328.736.994 792.900.649 1959,37%

6,1% 11,1% 6,1% 4,7% 4,6% 0,3%MINORITY INTERESTS ON CONSOLIDATEDNET INCOME OF SUBS 603.622.546 331.605.888 82,03% 169.101.796 121.929.555 38,69% 30.536.247 160.004.611 -80,92%

NET INCOME 23.025.215.571 39.607.882.767 -41,87% 21.566.300.241 12.847.314.612 67,87% 16.298.200.747 632.896.038 2475,18%5,9% 11,0% 6,0% 4,6% 4,6% 0,2%

Total Sales (m²) 12.123.930 10.588.215 14,50% 11.148.217 8.578.769 29,95% 10.900.808 8.939.407 21,94%Total Production (m²) 12.003.971 12.255.044 -2,05% 12.855.726 9.730.519 32,12% 11.857.723 8.799.791 34,75%3535

1Q - 16 1Q - 15 % 2Q - 16 2Q - 15 % 3Q - 16 3Q - 15 %

NET SALES 390.403.430.667 358.973.573.636 8,76% 358.153.820.270 276.372.994.990 29,59% 354.908.661.879 284.542.866.795 24,73%32.201 33.903 -5,02% 32.127 32.216 -0,28% 32.558 31.830 2,29%

COST OF GOODS SOLD 312.035.246.336 252.594.075.477 23,53% 283.692.710.517 216.879.161.918 30,81% 279.013.299.588 231.214.219.300 20,67%25.737 23.856 7,88% 25.447 25.281 0,66% 25.596 25.865 -1,04%

GROSS PROFIT 78.368.184.331 106.379.498.159 -26,33% 74.461.109.753 59.493.833.072 25,16% 75.895.362.291 53.328.647.495 42,32%20,1% 29,6% 20,8% 21,5% 21,4% 18,7%

OPERATING EXPENSE 2.905 3.554 -18,25% 3.156 3.389 -6,87% 3.443 3.449 -0,16%Selling 35.222.122.943 37.626.240.431 -6,39% 35.186.038.082 29.072.844.814 21,03% 37.536.465.215 30.832.862.196 21,74%General and Administrative 11.929.637.993 11.840.371.986 0,75% 11.246.358.717 11.006.472.124 2,18% 10.318.860.274 10.433.775.193 -1,10%Total Operating Expense 47.151.760.936 49.466.612.417 -4,68% 46.432.396.799 40.079.316.938 15,85% 47.855.325.489 41.266.637.389 15,97%

3.889 4.672 -16,75% 4.165 4.672 -10,85% 4.390 4.616 -4,90%INCOME FROM OPERATION 31.216.423.395 56.912.885.742 -45,15% 28.028.712.954 19.414.516.134 44,37% 28.040.036.802 12.062.010.106 132,47%

8,0% 15,9% 7,8% 7,0% 7,9% 4,2%

OTHER INCOME (EXPENSE)Interest Expense (2.766.844.174) (877.260.957) -215,40% (3.002.437.287) (1.296.823.397) -131,52% (6.566.296.366) (1.807.990.158) 263,18%Gain (Loss) on foreign exchange 2.973.638.690 (3.743.299.395) 179,44% 3.169.329.634 (2.279.950.989) 239,01% (678.280.211) (8.366.143.514) -91,89%Others 434.231.951 1.018.616.855 -57,37% 1.117.530.810 1.345.117.816 -16,92% 1.373.494.545 (445.219.902) -408,50%Total Other Income (Expense) 641.026.467 (3.601.943.497) -117,80% 1.284.423.157 (2.231.656.570) -157,55% (5.871.082.032) (10.619.353.574) -44,71%

INCOME BEFORE INCOME TAX 31.857.449.862 53.310.942.245 -40,24% 29.313.136.111 17.182.859.564 70,60% 22.168.954.770 1.442.656.532 1436,68%8,2% 14,9% 8,2% 6,2% 6,2% 0,5%

INCOME TAX EXPENSECurrent 8.821.702.800 14.030.929.251 -37,13% 8.310.366.000 4.870.883.551 70,61% 6.349.035.350 1.360.008.973 366,84%Deferred (593.091.055) (659.475.661) -10,07% (732.631.926) (657.268.154) 11,47% (508.817.573) (710.253.090) -28,36%

INCOME TAX EXPENSE 8.228.611.745 13.371.453.590 -38,46% 7.577.734.074 4.213.615.397 79,84% 5.840.217.777 649.755.883 798,83%

NET INCOME BEFORE MINORITY INTERESTSON CONSOLIDATED NET INCOME OF SUBS 23.628.838.117 39.939.488.655 -40,84% 21.735.402.037 12.969.244.167 67,59% 16.328.736.994 792.900.649 1959,37%

6,1% 11,1% 6,1% 4,7% 4,6% 0,3%MINORITY INTERESTS ON CONSOLIDATEDNET INCOME OF SUBS 603.622.546 331.605.888 82,03% 169.101.796 121.929.555 38,69% 30.536.247 160.004.611 -80,92%

NET INCOME 23.025.215.571 39.607.882.767 -41,87% 21.566.300.241 12.847.314.612 67,87% 16.298.200.747 632.896.038 2475,18%5,9% 11,0% 6,0% 4,6% 4,6% 0,2%

Total Sales (m²) 12.123.930 10.588.215 14,50% 11.148.217 8.578.769 29,95% 10.900.808 8.939.407 21,94%Total Production (m²) 12.003.971 12.255.044 -2,05% 12.855.726 9.730.519 32,12% 11.857.723 8.799.791 34,75%

Q3 2016 Q3 2015 %NET SALES 1.103.465.913.016 919.889.435.421 19,96%

32.291 32.729 -1,34%

COST OF GOODS SOLD 874.741.256.440 700.687.456.695 24,84%25.598 24.930 2,68%

GROSS PROFIT 228.724.656.576 219.201.978.726 4,34%20,7% 23,8%

OPERATING EXPENSE 3.159 3.470 -8,97%

Selling 107.944.626.240 97.531.947.441 10,68%General and Administrative 33.494.856.984 33.280.619.303 0,64%Total Operating Expense 141.439.483.224 130.812.566.744 8,12%

4.139 4.654 -11,07%

INCOME FROM OPERATION 87.285.173.352 88.389.411.982 -1,25%7,9% 9,6%

OTHER INCOME (EXPENSE)Interest Expense (12.335.577.827) (3.982.074.512) 209,78%Gain (Loss) on foreign exchange 5.464.688.113 (14.389.393.898) -137,98%Others 2.925.257.206 1.918.514.769 52,48%Total Other Income (Expense) (3.945.632.508) (16.452.953.641) -76,02%

INCOME BEFORE INCOME TAX 83.339.540.844 71.936.458.341 15,85%

INCOME TAX EXPENSECurrent 23.481.104.150 20.261.821.775 15,89%Deferred (1.834.540.554) (2.026.996.905) -9,49%

INCOME TAX EXPENSE 21.646.563.596 18.234.824.870 18,71%

NET INCOME BEFORE MINORITY INTERESTS 61.692.977.248 53.701.633.471 14,88%ON CONSOLIDATED NET INCOME OF SUBSIDIARIES 5,6% 5,8%

MINORITY INTERESTS ON CONSOLIDATED 803.260.589 613.540.054 30,92%NET INCOME OF SUBSIDIARIES

NET INCOME 60.889.716.659 53.088.093.417 14,70%5,5% 5,8%

Total Sales (m²) 34.172.755 28.106.391 21,58%Total Production (m²) 36.717.420 30.785.354 19,27%

3636

Q3 2016 Q3 2015 %NET SALES 1.103.465.913.016 919.889.435.421 19,96%

32.291 32.729 -1,34%

COST OF GOODS SOLD 874.741.256.440 700.687.456.695 24,84%25.598 24.930 2,68%

GROSS PROFIT 228.724.656.576 219.201.978.726 4,34%20,7% 23,8%

OPERATING EXPENSE 3.159 3.470 -8,97%

Selling 107.944.626.240 97.531.947.441 10,68%General and Administrative 33.494.856.984 33.280.619.303 0,64%Total Operating Expense 141.439.483.224 130.812.566.744 8,12%

4.139 4.654 -11,07%

INCOME FROM OPERATION 87.285.173.352 88.389.411.982 -1,25%7,9% 9,6%

OTHER INCOME (EXPENSE)Interest Expense (12.335.577.827) (3.982.074.512) 209,78%Gain (Loss) on foreign exchange 5.464.688.113 (14.389.393.898) -137,98%Others 2.925.257.206 1.918.514.769 52,48%Total Other Income (Expense) (3.945.632.508) (16.452.953.641) -76,02%

INCOME BEFORE INCOME TAX 83.339.540.844 71.936.458.341 15,85%

INCOME TAX EXPENSECurrent 23.481.104.150 20.261.821.775 15,89%Deferred (1.834.540.554) (2.026.996.905) -9,49%

INCOME TAX EXPENSE 21.646.563.596 18.234.824.870 18,71%

NET INCOME BEFORE MINORITY INTERESTS 61.692.977.248 53.701.633.471 14,88%ON CONSOLIDATED NET INCOME OF SUBSIDIARIES 5,6% 5,8%

MINORITY INTERESTS ON CONSOLIDATED 803.260.589 613.540.054 30,92%NET INCOME OF SUBSIDIARIES

NET INCOME 60.889.716.659 53.088.093.417 14,70%5,5% 5,8%

Total Sales (m²) 34.172.755 28.106.391 21,58%Total Production (m²) 36.717.420 30.785.354 19,27%

Profitability Ratios 2008 2009 2010 2011 2012 2013 2014 2015 2016(3Q)

Gross Profit Margin 31% 30% 32% 31% 34% 35% 32% 22% 21%

Net Profit Margin 8% 9% 9,5% 10,3% 14,2% 17,0% 16,1% 5,4% 5,5%

Return on Equity 19% 19% 19% 20% 26% 31% 29% 8% 7%

Return on Assets 7% 8% 9% 11% 17% 21% 21% 5% 4%

Return on Investment 11% 11% 14% 17% 27% 33% 35% 8% 9%

3737

Solvability Ratios

Current Ratio 76% 79% 97% 102% 136% 130% 168% 102% 124%

Debt to Equity Ratio 158% 138% 112% 72% 52% 48% 38% 60% 66%

Gearing Ratio 71% 63% 48% 33% 11% 5% 2% 1% 11%

Debt to Assets 61% 58% 52% 42% 34% 32% 28% 37% 40%

PRODUCTION UNIT COST Q3 2015 Q3 2016 % WEIGHTEXCHANGE RATE 13.268 13.328 0,5%

PRODUCTION COST PER UNITBody 2.803 2.668 -4,8%Glaze 4.651 4.422 -4,9%

Total Raw Material Cost per m2 7.454 7.090 -4,9% -1,5%Direc Labor Cost 854 894 4,7% 0,2%

VARIABLE MANUFACTURING COSTNatural Gas 8.320 8.454 1,6% 0,5%Electricity 2.191 2.079 -5,1% -0,5%Spare Parts 766 1.029 34,3% 1,1%Packing Materials 1.215 1.469 20,9% 1,0%Supporting Materials 251 266 6,0% 0,1%Diesel Oil and Lubricant 141 135 -4,3% 0,0%Total Variablle Manufacturing Cost 12.884 13.432 4,3% 2,2%

TOTAL VARIABLE PRODUCTION COST 21.192 21.416 1,1% 0,9%

FIXED PRODUCTION COST PER UNITDepreciation 1.776 1.891 6,5% 0,5%Salary 1.214 1.296 6,8% 0,3%Others 475 636 33,9% 0,7%

TOTAL FIXED PRODUCTION COST 3.465 3.823 10,3% 1,5%

TOTAL PRODUCTION COST PER UNIT 24.657 25.239 2,4% 3838

PRODUCTION UNIT COST Q3 2015 Q3 2016 % WEIGHTEXCHANGE RATE 13.268 13.328 0,5%

PRODUCTION COST PER UNITBody 2.803 2.668 -4,8%Glaze 4.651 4.422 -4,9%

Total Raw Material Cost per m2 7.454 7.090 -4,9% -1,5%Direc Labor Cost 854 894 4,7% 0,2%

VARIABLE MANUFACTURING COSTNatural Gas 8.320 8.454 1,6% 0,5%Electricity 2.191 2.079 -5,1% -0,5%Spare Parts 766 1.029 34,3% 1,1%Packing Materials 1.215 1.469 20,9% 1,0%Supporting Materials 251 266 6,0% 0,1%Diesel Oil and Lubricant 141 135 -4,3% 0,0%Total Variablle Manufacturing Cost 12.884 13.432 4,3% 2,2%

TOTAL VARIABLE PRODUCTION COST 21.192 21.416 1,1% 0,9%

FIXED PRODUCTION COST PER UNITDepreciation 1.776 1.891 6,5% 0,5%Salary 1.214 1.296 6,8% 0,3%Others 475 636 33,9% 0,7%

TOTAL FIXED PRODUCTION COST 3.465 3.823 10,3% 1,5%

TOTAL PRODUCTION COST PER UNIT 24.657 25.239 2,4%

415.1

483.2

604.8

768.5

909.94 894.73

18.3% 19.0% 19.6%

25.9%

30.6%28.5%

15%

20%

25%

30%

35%

500

600

700

800

900

1000

Profitability Ratio - ROE

3939

63.9 79.0 94.7

156.5

235.2 259.52

69.78

348.3

415.1

7.8%

0%

5%

10%

15%

0

100

200

300

400

2009 2010 2011 2012 2013 2014 2015

Net Profit Equity ROE

97%

102%

117%

130%

161%

102%

124%

95%

78%

100%

120%

140%

160%

180%

Liquidity Ratio – Current ratio

4040

76% 79%

97%78%

66%

33%

11%5% 2% 1%

11%

0%

20%

40%

60%

80%

2008 2009 2010 2011 2012 2013 2014 2015 2016 (Q3)

Current Ratio Gearing Ratio

37,490

28,725

INDONESIAN CERAMIC DEMAND

Total House needed per Year Unit

Population Growth 1.3% per year 839,500

House refurbishment 5% per year 3,238,580

251,850,000 x 1.3%

3.9

251,850,000 x 1.3%

3.9

64,771,600 x 5%House refurbishment 5% per year 3,238,580

House Back Log 1,360,000

5,438,080

13,600,000

10 year

13,600,000

10 year

64,771,600 x 5%64,771,600 x 5%

CERAMIC DEMAND = 435,046,400 M2CERAMIC DEMAND = 435,046,400 M2

Installed Capacity Ceramic DemandCapacity Utility Output

2013 420 80% 330 3602014 450 80% 360 4002015 550 65% 360 3502016 550 73% 400 400

Installed Capacity Ceramic DemandCapacity Utility Output

2013 420 80% 330 3602014 450 80% 360 4002015 550 65% 360 3502016 550 73% 400 400

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