Financial Analysis Ratio - PT Indofood Sukses Makmur Tbk from year 2014-2018

1. FINANCIAL ANALYSIS RATIO
PT INDOFOOD SUKSES MAKMUR Tbk
Presented by:
Eli Ermawati

2. INTRODUCTION
• Over the last two decades, Indofood has
progressively transformed into a Total Food
Solutions company with operations in all
stages of food manufacturing, from the
production of raw materials and their
processing, to consumer products in the
market.

3. COMPANY OVERVIEW
• PT Indofood Sukses Makmur Tbk, which was incorporated as
PT Panganjaya Intikusuma in 1990, has various businesses that
have been operational since the early 1980
• 1990 - Entered the snack foods business through a joint
venture (“JV”) with Fritolay Netherlands Holding B.V.,
an affiliate of PepsiCo Inc
• 1994 - Renamed PT Indofood Sukses Makmur
• 2018 - The CBP Group acquired full ownership of the beverage
and culinary products subsidiaries, in addition to the product
distribution.

4. CONSUMER BRANDED PRODUCTS

5. BUSINESS STRATEGY
PRODUCT
DEVELOPMENT
STRATEGY
MARKET
DEVELOPMENT
STRATEGY
FORWARD
INTEGRATION
BACKWARD
INTEGRATION
MARKET
PENETRATION

6. FINANCIAL PERFORMANCE

7. FINANCIAL PERFORMANCE

8. RATIO ANALYSIS
• Ratio Activity
• Ratio Liquidity
• Ratio Debt
• Ratio Profitability
• Ratio Market

9. RATIO ACTIVITY
0
0.5
1
1.5
2
2014 2015 2016 2017 2018
1.81 1.71
1.51 1.52
1.07
CURRENT RATIO FOR YEAR 2014 - 2018
Current Ratio
Note: Indofood has decrease the amount of current ratio every
year, and also has a good ability to pay liabilities. Because the
comparison of the assets is greater than the obligation owned.

10. RATIO LIQUIDITY
0
0.2
0.4
0.6
0.8
1
1.2
2014 2015 2016 2017 2018
0.67
0.64
0.51 0.52 0.6
0.32 0.34
0.21 0.23
0.42
GEARING RATIO FOR YEAR 2014 - 2018
GR Net
GR Gross
Note: Total trade accounts receivable as of 31 December 2018
was Rp5.40 trillion, of which around 80% are current.

11. RATIO DEBT
0
0.5
1
1.5
2
2014 2015 2016 2017 2018
0.53
0.53
0.47 0.47 0.48
1.14 1.13
0.87 0.88 0.93
LIABILITIES TO ASSET & EQUITY RATIO FOR YEAR
2014 - 2018
LtoE
LtoA
Note: Total liabilities to total equity ratio was 0.93 times
in 2018, an increase from 0.88 times in 2017. Interest coverage
ratio decreased to 7.8 times in 2018 from 8.2 times in 2017,
mainly attributable to higher interest expense in relation to the
increase in funded debt.

12. RATIO DEBT
0
0.2
0.4
0.6
0.8
1
1.2
2014 2015 2016 2017 2018
1.14 1.13
0.87 0.88
0.93
DEBT TO EQUITY RATIO FOR YEAR 2014 - 2018
LtoE
Note: The Company continues to record a healthy solvency ratio. The
debt to equity ratio (DER) in 2018 was 0.93 : 1. This figure was mainly
due to the decrease in bank borrowings and the increase in the
current year’s profit which positively correlated with equity.

13. PROFIT MARGIN
7.32
7.36
8.29 8.68
9.14
2014 2015 2016 2017 2018
(in trillions of rupiah)
NOTE: The Company’s gross profit increased 2.2% to Rp20.21
trillion in 2018 from Rp19.77 trillion in 2017, but gross margin
declined to 27.5% from 28.2% in 2017 mainly on lower
Agribusiness Group performance in relation to lower commodity
prices. EBIT grew 5.3% to Rp9.14 trillion in 2018 from Rp8.68
trillion in 2017, and EBIT margin relatively stable at 12.5% due to
higher foreign exchange gain from operating activities in 2018 and
adjustment on fair value of initial investment in subsidiaries.

14. RATIO PROFITABILITY
0
5
10
15
20
2014 2015 2016 2017 2018
6.4 4.2 6.1 6 5.4
8.9
8.3
9.5 10.2 9.9
ROA FOR YEAR 2014 - 2018
ROA % EBIT
ROA % Net Income
Note: Return represents total return including Non-Controlling
Interests. EBIT grew 5.3% to Rp9.14 trillion in 2018 from Rp8.68
trillion in 2017, and EBIT margin relatively stable at 12.5% due to
higher foreign exchange gain from operating activities in 2018 and
adjustment on fair value of initial investment in subsidiaries.

15. RATIO PROFITABILITY
0
2
4
6
8
10
12
14
2014 2015 2016 2017 2018
13.6
8.9
12.1 11.1
10.2
ROE FOR YEAR 2014 - 2018
ROE %
Note: As of 31 December 2018, the Company’s total equity
was Rp49.92 trillion compared with Rp47.10 trillion as of
31 December 2017, mainly due to earnings generated in
2018 net of dividend payment for the financial year 2017.

16. SHARE PRICE INFORMATION

17. DIVIDEND AND MARKET
CAPITALIZATION
• According to the decision of the shareholders at
AGM on 31 May 2018, a total dividend of Rp2.08
trillion or Rp237 per share, representing around 50%
dividend payout, was distributed to shareholders on
5 July 2018. The dividend payment for the financial
year 2017 was higher than the previous year, in
which Rp2.06 trillion or Rp235 per share,
representing around 50% dividend payout, was
distributed on 6 July 2017.

18. Reference
• Annual Report PT Indofood Sukses Makmur Tbk
from year 2014-2018.

19. THANK YOU