PEFINDO Revises the Outlook of PT Tiga Pilar Sejahtera Food Tbk’s Rating to “Stable” from “Credit Watch with Negative Implications”, Ratings are Maintained at “idCCC”

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1. Press Release March 27 , 2018 PT TIGA PILAR SEJAHTERA FOOD Tbk Analysts: Martin Pandiangan / Christyanto Wijaya Phone/Fax/E-mail: (62-21) 72782380 / 72782370 / martin.pandiangan@pefindo.co.id / christyanto.wijaya@pefindo.co.id CREDIT PROFILE FINANCIAL HIGHLIGHTS As of/for the year ended Corporate Rating idCCC/Stable Rated Issues Sukuk Ijarah II/2016 Bond I/2013 Sukuk Ijarah I/2013 idCCC(sy) idCCC idCCC(sy) Rating Period March 26, 2018 – May 1, 2018 Rating History FEB 2018 JAN 2018 DEC 2017 NOV 2017 NOV 2017 JUL 2017 MAY 2017 MAY 2016 JAN 2016-2013 idCCC/C.W Negative Negative idBBB/C.W Negative idBBB/C.W Negative idA/C.W Negative idA/Stable idA/Stable idA/Stable idA-/Stable idBB+/C.W Total adjusted assets [IDR Bn] Total adjusted debt [IDR Bn] Total adjusted equity [IDR Bn] Total sales [IDR Bn] EBITDA [IDR Bn] Net income after MI [IDR Bn] EBITDA margin [%] Adjusted debt to EBITDA [X] Adjusted debt to adjusted equity [X] FFO to adjusted debt [%] EBITDA to IFCCI [X] USD exchange rate [IDR/USD] Sep-2017 Dec-2016 Dec-2015 Dec-2014 (Unaudited) (Audited) (Audited) (Audited) 9,315.7 4,580.6 4,098.3 4,109.0 647.9 173.5 15.8 *5.3 1.1 *7.6 1.9 13,492 8,916.6 4,344.2 3,926.4 6,545.7 1,148.2 593.5 17.5 3.8 1.1 12.6 2.7 13,436 8,526.2 4,112.7 3,432.1 6,010.9 877.9 323.4 14.6 4.7 1.2 8.3 2.1 13,795 6,937.8 3,083.9 3,158.8 5,140.0 764.8 331.8 14.9 4.0 1.0 12.2 2.7 12,440 FFO = EBITDA – IFCCI + Interest Income – Current Tax Expense EBITDA = Operating Profit + Depreciation Expense + Amortization Expense IFCCI = Gross Interest Expense + Other Financial Charges + Capitalized Interest; (FX Loss not included) MI= Minority Interest *Annualized The above ratios have been computed based on information from the company and published accounts. Where applicable, some items have been reclassified according to PEFINDO’s definitions. PEFINDO revises the outlook of PT Tiga Pilar Sejahtera Food Tbk’s rating to “Stable” from “Credit Watch with Negative Implications”, ratings are maintained at “idCCC” PEFINDO has revised the outlook of PT Tiga Pilar Sejahtera Food Tbk (AISA)’s rating to “Stable” from “Credit Watch with Negative Implication” following the results of AISA’s Bondholders General Meeting (Rapat Umum Pemegang Obligasi/RUPO) and Sukuk Ijarah holders General Meeting (Rapat Umum Pemegang Sukuk Ijarah/RUPSI) on March 22, 2018, which extend the maturity date of Bond I/2013 and Sukuk Ijarah I/2013 to April 5, 2019. The 12 months maturity extension reduces its refinancing risk and gives rooms for AISA to execute several corporate actions for repayment purposes. The repayment of Sukuk Ijarah II/2016 may be accelerated if repayment sources are sufficient. The Company will start the next interest payment in July 2018 on a semi-annual basis. At the same time, PEFINDO has maintained its “idCCC” ratings for AISA and its Bond I/2013, and its “idCCC(sy)” ratings for its Sukuk Ijarah I/2013 and Sukuk Ijarah II/2016, as we concern on risks related to the execution of AISA’s corporate actions to settle the repayment sources, such as rice divestment and loans refinancing. Delayed on rice subsidiaries divestment will significantly impact AISA’s capability to repay its maturing bond and sukuk. We may upgrade the rating if the rice subsidiaries divestment and other corporate actions being materialized to repay the maturing bond and sukuk. However, the corporate rating could be put on “Credit Watch with Negative Implication” if delays on the rice divestment process take a longer time than anticipated and/or if the Company’s financial performance further deteriorates. Its maturing bond and sukuk ratings could be lowered to “idD” if there are interests and/or principals’ mispayment on their respective due dates. An obligor rated idCCC is currently vulnerable, and is dependent upon favorable business and financial conditions to meet its financial commitments. The suffix (sy) means the rating mandates compliance with Islamic principles. The ratings also reflect the Company’s weak liquidity and cash flow protection, its aggressive capital structure, its exposure to fluctuating raw material costs, and the tight competition in the industry. However, the ratings are offset by AISA’s relatively diversified products and its above average position in the domestic food market. AISA will focus on its food business (basic and consumer food) after divesting its rice business. Its food production facilities are in Java. As of September 30, 2017, its shareholders were PT Tiga Pilar Corpora (26.10%), JP Morgan Chase Bank Non-Treaty Clients (9.33%), Trophy 2014 Investors Limited (9.09%), Morgan Stanley & Co. LLC-Client Account (6.52%), Maybank Kim Eng Securities (5.48%), Primanex Pte. Limited (5.38%), and the public (38.09%). http://www.pefindo.com March 2018
2. Press Release March 27 , 2018 DISCLAIMER PT Pemeringkat Efek Indonesia (PEFINDO) does not guarantee the accuracy, completeness, timeliness or availability of the contents in this report or publication. PEFINDO cannot be held liable for its use, its partial use, lack of use, in combination with other products or used solely, nor can it be held responsible for the result from its use or lack of its use in any investment or other kinds of financial decision making on which this report or publication is based. In no event shall PEFINDO be held liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses including but not limited to lost profits and opportunity costs in connection with any use of the contents of this report or publication. Credit analyses, including ratings, and statements in this report or publication are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold or sell any securities or to make any investment decision. The contents cannot be a substitute for the skill, judgment and experience of its users, its management employees and/or clients in making investment or other business decisions. PEFINDO also assumes no obligation to update the content following publication in any form. PEFINDO does not act as fiduciary or an investment advisor. While PEFINDO has obtained information from sources it believes to be reliable, PEFINDO does not perform an audit and does not undertake due diligence or independent verification of any information used as the base of and presented in this report or publication. PEFINDO keeps the activities of its analytical units separate from its business units to preserve independence and objectivity of its analytical processes and products. As a result, certain units of PEFINDO may have information that is not available to other units. PEFINDO has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. PEFINDO may receive compensation for its ratings and other analytical work, normally from issuers of securities. PEFINDO reserves the right to disseminate its opinions and analyses. PEFINDO public ratings and analyses are made available on its Website, http://www.pefindo.com (free of charge) and through other subscription-based services, and may be distributed through other means, including via PEFINDO publications and third party redistributors. Information in PEFINDO’s website and its use fall under the restrictions and disclaimer stated above. Reproduction of the content of this report, in full or in part, is subject to written approval from PEFINDO. http://www.pefindo.com March 2018