Cimory Go Public, offer 15% shares

JAKARTA. The Covid-19 pandemic that has hit the world as it is today, has increased public awareness of the importance of nutritious food and drinks to maintain a healthy body. Yogurt and Milk are some examples of high nutritional consumer products that play a role in maintaining the body's immunity. It is not surprising that the research institute Euromonitor revealed than the nutritional product categories such as yogurt and milk showed positive growth prospects for the market.

Consumption of dairy products in Indonesia tends to grow, although the level of milk consumption per capita in Indonesia in 2020, according to research by Euromonitor, is still US$6. This amount is still lower than a number of other ASEAN countries such as Malaysia (16 US dollars / capita), Thailand (25 US dollars / capita) and Vietnam (32.0 US dollars / capita). This condition will be an opportunity and have good business prospects for the dairy industry in Indonesia, whose per capita consumption level is expected to almost double to US$ 11.7 by 2025.

This condition gave birth to a commitment from PT Cisarua Mountain Dairy Tbk as a producer of Premium Dairy Products with the Cimory trademark and Premium Consumer Products with the trademarks Besto and Kanzler, to increase production capacity and expand distribution to make it more affordable to meet the needs of nutritious dairy products.

To meet these needs, PT Cisarua Mountain Dairy Tbk will sell 1,190,203,000 shares to the public through an Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX). The number of shares represents 15% of the Company's issued and fully paid capital with a nominal value of Rp10,- per share.

The initial share price is set at around Rp2,780 to Rp3,160 per share. So that the total proceeds from the IPO that will be raised by the Company will reach a maximum of Rp. 3,761,041,480,000,-

After deducting emission costs, the Company will use the funds to:

• Approximately 33% will be used for capital expenditures related to additional capacity for production facilities in the form of: property, plant, equipment.

• Approximately 25% for capital injection to the Subsidiary, namely PT Macroprima Panganutama (MP), a food processing and canning company. The funds will mainly be used by MP to increase capacity for production facilities, as well as for working capital.

• Approximately 20% for capital injection to the Subsidiary PT Macrosentra Niagaboga (MN), a company engaged in agents and distributors. The funds will mainly be used by MN for capital expenditures related to the distribution center expansion plan, as well as for working capital.

• Approximately 15% will be used for capital expenditures related to distribution channel expansion in the form of additions in stores and retail and supporting facilities related to increasing the number of Miss Cimory which includes training and development.

• Approximately 7% will be used for the Company's working capital to finance daily operational needs.

In this initial public offering, the Company has appointed PT CLSA Sekuritas Indonesia and PT Mandiri Sekuritas to act as implementing underwriters.

The following is an indication of the transaction schedule until it is listed on the IDX:

• Initial Offer Period : 10 -17 November 2021

• Estimated Effective Permit : November 26, 2021

• Estimated period of initial public offering of shares : Nov 30– Dec 2 2021.

• Estimated Allotment Date : December 2, 2021

• Electronic Stock Distribution Forecast : December 3, 2021

• Estimated Listing Date on the Indonesia Stock Exchange : December 6, 2021

Company Profile and Performance

The Company was established in 2005, with the main business activities in the field of Premium Dairy Products and the leading Premium Consumers in Indonesia. The company has a number of advantages, including the market leader in the yogurt industry. The Company also has a strong position in modern trading and focuses on developing the Company's footprint in general trading and the exclusive direct to consumer through Miss Cimory.

In addition, the Company's operational model allows setting a premium price for its products. This has contributed to high profitability for the Company, as can be seen from the profit growth for the current period as of June 2021 which reached Rp364.5 billion, growing 798.54% from Rp40.566 billion recorded in June 2020. Meanwhile, as of December 2020 profit current period of Rp. 177,007 billion.

Meanwhile, the Company's net sales as of June 2021 were recorded at Rp1,581.7 billion. An increase of 115.1% from Rp735.4 billion in June 2020. The revenue from net sales as of June 2021 has almost matched the 2020 achievement of Rp1,862 billion.

The high profitability growth was partly supported by the Company's position as the market leader in the overall yogurt product sub-category as well as in the Spoonable Yoghurt and Yogurt Drinks category, which based on Euromonitor's research results, the Company has a market share of 53.2%, 71.9 % and 50.3% as of December 31, 2020. The Company has also built a strong market position for Fresh White Milk products and the sub-category of Cold Processed Meat and Frozen Processed Meat products, ranking 4th as of 2020.

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For more information, please contact:

Phone : +62 21 5874630

Website : www.cimory.com

Email : corsec@cimory.com