Sales Kantor Cabang PT. Phillip Securities Indonesia

Kepada Yth. Bapak/Ibu : • • •

Pimpinan/Sales Kantor Cabang PT. Phillip Securities Indonesia Sales PT. Phillip Securities Indonesia Nasabah PT. Phillip Securities Indonesia

di- Tempat =============================================== ============================================ Dengan hormat kami informasikan bahwa Pena wa ran Umum Perda na (Initia l Public Offering / IPO) Saham PT. Sri Reje ki Isma n (SriTex) Tbk., a kan dila ksa naka n pada tanggal 10, 11, 12 Juni 2013. Sehubungan de ngan ha l tersebut, te rlampir kami sampaika n Formulir Aplikasi IPO Saham da n Fact Sheet Researc h da ri PT. Sri Reje ki Isma n (SriTex ) Tbk dima ksud. Selanjutnya, perkena nkan kami menyampa ikan ha l-hal sbb. : •

Pena wa ran Umum Perda na (IPO) Sa ham te rsebut di Phillip Sec urities Indonesia sudah dapat dimula i seja k tanggal 30 Mei 2013, teta pi dibatasi hanya sampai dengan ta ngga l 7 Juni 2013 pukul 12. 00 WIB.

• • •

Harga Pe na wara n Umum a dalah Rp. 240,- setiap saham Ta ngga l Listing di Bursa Efe k Indonesia (BEI) : 17 Juni 2013. Bapak/Ibu Nasabah yang be rminat memesan sa ham te rsebut, silahka n mengisi Formulir Aplikasi IPO Saham terlampir denga n membaca secara seksama, memahami dan mela ksa naka n semua kete ntua n da n tata-cara yang te rcantum di dalam Formulir te rsebut.

Catatan : Formulir Aplikasi IPO Saham ini , juga dapat diunduh dari www.poems.co.id Demikia n informasi ini kami sampa ikan, atas pengertian da n ke rja-sama yang baik dari Bapa k/Ibu, kami ucapka n te rima kasih.

Best Rega rds,

M. N a b a b a n

Corporate Finance Division PT. Phillip Securities Indonesia Telp. : (021) 57900800 Ext. 148 Fax : (021) 57900809

IPO: Sri Rejeki Isman Tbk

s

A Role Model of World Class Textile Companies Phillip Securities Indonesia Research

Phillip Securities Indonesia

May 21, 2013

S

ri Rejeki Isman (Sritex) is an integrated vertical textile – Garment plant comprising of nine spinning plants, three weaving plants, three printing plants and seven garment plants. Sritex is occupying an area of 50 ha in Sukoharjo, Solo, Central Java, Indonesia and employing approximately 16,000 people. Sritex is now an integrated textile factory with the most modern machineries. Sritex started as a trading company namely “Sri Rejeki” that was established in 1966 in Klewer market, Solo, Central Java, Indonesia, from a mere handprint factory. This small trading company expanded, by producing bleached and dyed fabrics in its first factory in Solo in 1968. The spinning division transforms fiber into yarn. Sritex comprises of nine spinning plants with a total of 4,000 employees. The spinning division is supported by 2,500 machines with more than 320,000 ring spindle & modified machines imported from Asia and Europe to accomplish 353,000 bales of yarn / year. The weaving divisions transform yarn into greige. Sritex utilizes outstanding technologies, producing various types of fabric with light, medium and heavy constructions. Weaving division production capacity is 120,000,000 m of greige / year. With more than 45 years of experience in dyeing and printing, sritex has become a role model among world class textile companies. With further expansion, today, the company supplies other military equipments beside uniforms in Indonesia and other countries around the world. Sritex is committed to provide the best quality in material and production for its customer’s satisfaction. The company attempts to fulfill every customer’s unique demand with its ability to create various types of fabric and specification from various materials and weaving style. Only to name a few, successful innovation in Sritex’s R & D includes fabric finish application for water-repellent, insectrepellent, flame-retardant, stain-defender, anti infra-red, light weight, and breathable on multiple types of materials.

Sri Rejeki Isman Report date

21-May-13

Exchange

:

Indonesia

Sector

:

Miscellaneous Industry

Industry

:

Textile garment

Sub-industry

:

Textile garment

IPO Price

:

IDR 230 - 385

Percent of Enlarged Capital Shares Offered

:

30.12%

:

5,600,000,000.00

Underwriter

:

PT Bahana Securities

Bookbuilding

:

20-28 May 2013

Pricing

:

Tuesday, May 28, 2013

Offer Period

:

10 - 12 June 2013

Allotment

:

Thursday, June 13, 2013

H.M Lukminto

:

0.07%

PT Huddleston Indonesia

:

80.24%

Estrada Trading Ltd

:

19.69%

Indicative Schedules

Initial Ownership Structure

: IPO Fund Usage * Approxiamately 87% for expansion of spinning division

Indonesia Retail Industry Retailers continued to accelerate their outlet expansion in 2012, looking at the rising purchasing power of Indonesian consumers. Modern retailers enjoyed dynamic growth in outlet number, resulting in stronger retail value growth compared with 2011. Amid positive outlet growth, traditional grocery retailers and independent small grocers are looking at negative outlet growth, threatened by the increasing presence of modern retailers. Within retail are numerous categories, covering everything from auto dealers, to convenience stores, to clothing. Fragmentation in the industry depends strongly on the specific sub-field – some, such as grocery stores are highly concentrated, while others, like convenience stores, are highly

* Approxiamately 13% for expansion of Garment division Analyst: Pandristo Prasetyo Ginarto [email protected] 62-21-57900900

Please see the back page for rating definition, analysts certification, and important disclosure. Phillip Securities Indonesia (PSI) may seek to do business with companies coverage in its reports. As a result investors, should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

Sri Rejeki Isman Tbk Indonesia Equities Research May 21, 2013

Military Uniforms: Sritex’s Core Product Military clothing has undergone substantial changes over the past two centuries. Military uniforms contrast sharply with the highly decorative although impractical garments were worn during combat in the 18th and 19th centuries. Changes in modes of battle dress since man has engaged in war have been prompted by changes in the way that wars are fought. Since the Second World War improvements in fabric technology have led to dramatic changes in clothing worn by soldiers. These changes pale in comparison with developments made in weaponry. Armies are addressing this imbalance by developing uniforms which improve soldier performance and comfort, and help to save lives during combat. Although military budgets are under pressure, fear of the public's response to war casualties has prompted heavy investment in clothing and equipment which are capable of boosting the survival chances of individual soldiers. Advances in materials have improved the performance of military clothing while providing high levels of protection. Information technology and nanotechnology are already playing a significant role. The military uniform of the future will be a multi-functional, fully integrated combat suit, equipped with the latest electronic technology. It will be lightweight, highly durable, and fire and ballistic-protective. Also, it will be able to change color according to its surroundings. Developments in military clothing also have the potential to be adapted for civilian applications—such as police work and firefighting. And markets for apparel designed for these occupations are substantially greater than those for the military alone.

Risk of Lower Entry Barrier The implementation of free trade (ASEAN – China free trade agreement) will lower the barrier for foreign competitors to take part in the textile industry in Indonesia. Minimum Provincial Wage The recently implemented government regulation about minimum provincial wages will weigh on labor costs, particularly in manufacturer such as Sritex. For Sritex, which is located in Sukoharjo, Solo, Central Java, the impact of raised minimum wage was felt indirectly, with 16.28% increase in minimum wage, from IDR 745,000 to IDR 866.250. Such cost pressure led the company to increase their revenue to pare against high cost. Export Market Scope and Production Capacity In the last five years, the company has been primarily exporting to Asian countries such as Korea, China, Malaysia and Thailand. In overall, the company supplies military uniforms to more than 29 countries. In order to improve their profit potentials, the company plans to increase their production capacity throughout its plants, one of which was via the purchase of additional textile machineries. The textile industry is an improving industry in Indonesia which generates positive contribution to the national revenue. Looking at the past 10 years, retail textile industry has generated USD 6.88 billion in 2002 and reached USD 12.87 billion in 2012.

Unit

fragmented. Because retail depends so vitally on the strengths of the economy, and factors like job growth and interest rates, the economy in general will have to become robust again before the retail sector can rebound fully. As demographics change, retailers will have to keep up with the changing needs of the populations in their locations.

35,000  30,000  25,000  Textile Industry 20,000  Garment and Other  Fiber Product

15,000 

Indonesia Army Order's Domestic Uniform Revenue

China's Textile Enterprise Unit

10,000 

Additional Up to 5,000 

145 

184 

184 

1998 2000 2002 2004 2006 2008 2010

114 

Source: CEIC

116 

Financial Highlights

2010

2011

2012

2013F

Source: Company Business Risk & Strategy Risk of Raw Material Dependence Raw material is one of the key elements in textile and garment business. Sritex, as a company engaging in textile and garment industry, develops a dependence on raw materials. As such, the company relies on supplies of raw materials from other parties.

In 2012, the company’s assets increased by 29.36% compared to the previous year, from IDR 2.747 billion in 2011 to IDR 3.553 billion in 2012. The increase was bolstered by improving fixed assets, which rose 48.39%. The company added new machineries. And as a result, engine capacity was increased by 27% per year, in the aggregate from 2010 to 2012. The increase in fixed assets is accompanied by an increase in the company’s inventory by 27.9%, as stocks of goods and raw materials climbed. Liabilities climbed 34.92%, affected by long-term liabilities which increased 78.17%. Equity rose 20.96% to IDR 1.323 trillion in 2012, from IDR 1.094 trillion a year earlier, as retained profits surged 82.60%.

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Sri Rejeki Isman Tbk Indonesia Equities Research May 21, 2013 The average selling price climbed 5% - 8% during the period, due to higher raw material prices as the result of inflation. Volume of sales also rose, after the company increased the production capacity from 160,000 bales in 2010 to 190,000 bales in 2011 and to 212,000 bales in 2012. The increased production capacity also boosted production in other segments. Sales volume in 2012 surged 41% compared to the previous year. Fabric sales volume also increased, by 9% compared to 2011. Market expansion has helped the company increased its profit margin. Net sales in 2012 amounted to IDR 2.85 billion, up 23.02%, or equivalent to IDR 533.47 billion, compared to the previous year. Increase in sales also contributed by the improvement of gross profit, which enabled the company to record operating profit of 28.24% compared to the previous year, to IDR 461,800 billion. The company also posted 42.03% increase in net profit, from IDR 161.451 trillion in 2011 to IDR 229.309 billion in 2012.

DSN Financial Performance Dharma Satya Nusantara 2010 2011 Total Current Asset 902.578 1054.222 Total Non Current Asset 1212.95 1693.008 Total Asset 2115.52 2747.23 Shorterm Liabilities 1253.3 1107.559 Longterm Liabilities 155.914 545.507 Total Liabilities 1409.21 1653.066 Total Equity 706.312 1094.164 Revenue (IDR bn) 2214.19 2317.508 Gross Profit (IDR bn) 382.459 460.94 Operating Expenses ‐109.08 ‐113.47 Operating Profit 271.397 360.109 Profit Before Income Tax 190.939 219.129 Income Tax ‐48.76 ‐57.67 Net Profit (IDR bn) 142.17 161.451 Growth Ratio (%) Cash Ratio (X) Current Ratio (X) Net Debt to Equity (X) DER (X) ROA ROE Source: Company

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2010         0.02         0.72         0.84         2.00 6.72% 20.13%

2011          0.06          0.95          1.10          1.51 5.88% 14.76%

2012 1489.03 2064.75 3553.79 1372.91 857.401 2230.31 1323.47 2850.99 617.694 ‐148.73 461.8 307.091 ‐77.78 229.309 2012      0.05      1.08      1.22       1.69 6.45% 17.33%

Sri Rejeki Isman Tbk Indonesia Equities Research May 21, 2013

Research Team | Telp: +62-21-57900800 | E-mail: [email protected] Aditya Perdana Putra (AP) Gunawan Sutanto (GS) Hega Kharisma Wahyudi (HK) Pandristo Prasetyo Ginarto (PP)

Rating for Sectors: Overweight : Expect the industry to perform better than the primary market index (JCI) over the next 12 months. Neutral : Expect the industry to perform in line with the primary market index (JCI) over the next 12 months. Underweight : Expect the industry to under perform the primary market index (JCI) over the next 12 months.

Rating for Stocks: Buy : The stock is expected to give total return (price appreciation + dividend yield) of above 15% over the next 12 months. Hold : The stock is expected to give total return of between -15% and 15% over the next 12 months. Sell : The stock is expected to give total return of -15% or lower over the next 12 months. Outperform: The stock is expected to do slightly better than the market return. Equal to “accumulate” or “moderate buy” Underperform: The stock is expected to do slightly worse than the market return. Equal to “weak hold” or “moderate sell”

Analyst Certification The research analyst(s) primarily responsible for the preparation of this research report hereby certify that all of the views expressed in this research report accurately reflect their personal views about any and all of the subject securities or issuers. The research analyst(s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report.

Disclaimers This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not make any representations as to its accuracy or completeness. Phillip Securities Indonesia (PSI) access no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities. PSI and its directors, officials and/or employees may have positions in, and may affect transactions in securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealing PP with respect to these companies. PSI may also seek investment banking business with companies covered in its research reports. As a result investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

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Sri Rejeki Isman Tbk Indonesia Equities Research May 21, 2013

ANZ Tower Level 23B, Jl. Jendral Sudirman Kav 33A, Jakarta, 10220 - Indonesia Telp. (62-21) 57 900 800, Fax. (62-21) 57 900 809, Email : [email protected] Website: www.phillip.co.id | www.poems.co.id | www.poems.web.id Jakarta Komp. Ruko Mega Grosir Cempaka Mas Jl. Let. Jend. Soeprao Blok D No. 7 Jakarta, 10640 Telp. (62-21) 4288 5051 / 52; Fax. (62-21) 4288 5049 E-Mail: [email protected]

Mangga Dua Ruko Bahan Bangunan Mangga Dua Blok F1/8 Jl. Mangga Dua Selatan Jakarta 10730 Telp. (62-21) 6220 3589; Fax. (62-21) 6220 3602 E-Mail: [email protected]

Rukan Sentra Latumenten Jl.Prof.Dr Latumenten no.50 Blk AA 12 Jakarta, 11460 Telp. (62-21) 5694 1781; Fax. (62-21) 5694 1791 E-Mail: [email protected]

Roxy Pusat Niaga Roxy Mas Blok B2/2 Jl. KH. Hasyim Ashari - Jakarta Barat Telp. (62-21) 6386 8308; Fax. (62-21) 6333 420 E-Mail: [email protected]

Pantai Indah Kapuk Jl. Pantai Indah Barat Rukan Ekslusif BGM Blok B-6 Telp. (62-21) 5694 5791/92/93; Fax. (62-21) 56945790 E-Mail: [email protected]

Taman Palem Rukan Malibu Blok H No. 23 Cengkareng, Jakbar 11730 Telp. (62-21) 5694 5055 / 5077; Fax. (62-21) 5694 5013; E-Mail: [email protected]

Sunter Jl. Mitra Boulevard Blok D No. 5 Sunter Jakarta, 14350 Telp. (62-21) 6530 2729; Fax. (62-21) 6583 7463 E-Mail: [email protected]

Kelapa Gading Jl. Boulevard Raya Blok WB2/27 Kelapa Gading Jakarta Utara Telp. (62-21) 7070 0050/4587/9264; Fax. (62-21) 453 2939; EMail: [email protected]

Citra Garden 2 Komp. Citra Niaga Blok A No.18 Citra Garden 2 - Kalideres, JakBar Telp. (62-21) 5436 0175; Fax. (62-21) 5436 0174

Tanah Abang Pusat Grosir Metro Tanah Abang (PGMTA) Lantai 6, Jl.Fachrudin Tanah Abang - Jakarta Pusat 10250 Telp : (021) 3003 6745 / 3003 6746; Fax : (021) 3003 6748 E-Mail: [email protected]

Jawa Tengah Purwokerto Jln. Perintis Kemerdekaan No. 38 Purwokerto - Jawa Tengah, 53110 Telp. (62-281) 626 899; Fax. (62-281) 891 150 E-Mail: [email protected]

Solo Jl. Veteran 140 / 2-3 Solo, Jawa Tengah Telp. (62-271) 655 567, 667 168; Fax. (62-271) 647 288 E-Mail: [email protected]

Semarang Jl. Karang Wulan Timur No. 2 - 4 Semarang Indonesia Telp. (62-24) 355 5959; Fax. (62-24) 351 3194 E-Mail: [email protected]

Tegal Kompleks Nirmala Square Blok C no.7 Jl. Yos Sudarso - Tegal 52121 Telp. (62-283) 340773; Fax. (62-283) 340774

Jawa Barat Komp.Paskal Hypersquare Blok C-21 Jl Pasirkaliki 25-27 Bandung Telp. (62-22) 8606 0690; Fax. (62-22) 8606 0765 E-Mail: [email protected]

Bali Jln. Melati No. 45 Blok E Denpasar - Bali, 80233 Telp. (62-361) 238 987; Fax. (62-361) 229 803 E-Mail: [email protected]

Jawa Timur Jln. Flores No. 11 Surabaya, 60281 Telp. (62-31) 501 5777; Fax. (62-31) 501 0567 E-Mail: [email protected]

Batam Kompleks Mahkota Raya Blok A no. 10 Batam Centre, Kota Batam 29456, Kepri Telp. (62-778) 748 3337/3030/3131; Fax. (62-778) 748 3117; E-Mail: [email protected]

Jambi Jln. GR. Djamin Datuk Bagindo No. 56A Jambi, 36142 Telp. (0741) 707 8260, 7555 699 E-Mail: [email protected]

Kalimantan Barat Jl. Teuku Umar Komplek Pontianak Mal C 23-24 Pontianak, Kalimantan Barat Telp. (62-561) 777 887; Fax. (62-561) 745 103 E-Mail: [email protected]

Lampung Jl. Ikan Tongkol No. 33 Blok 7-8 Teluk Betung - Bandar Lampung, 35223 Telp. (2-721) 474 234; Fax. (62-721) 474 108 E-Mail: [email protected]

Pojok BEI (Phillip Sec Ind. – Univ. Bandar Lampung – BEI) Jl. Z.A Pagar Alam No. 89 Bandar Lampung, 35141 Telp. (62-721) 771 695; Fax. (62-721) 770 261

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FORMULIR APLIKASI IPO SAHAM

PT. Sri Rejeki Isman (SriTex) Tbk 

▪

Nama Saham / Emiten

:

▪

Tanggal Penawaran Umum

: 30 Mei 2013 (s/d 7 Juni 2013 pkl. 12.00 WIB)

▪

Harga Penawaran

: Rp.240,- per saham

A. Persyaratan Aplikasi IPO Saham : (Mohon persyaratan ini dibaca, difahami dan dilaksanakan)) 1.

Nasabah melakukan pembayaran pemesanan saham secara penuh yaitu senilai jumlah saham yang dipesan dikalikan dengan harga per saham (Rp.240,-). Pembayaran tersebut harus dilakukan selambat-lambatnya tanggal 7 Juni 2013 pukul 12.00 Wib (in good funds) dengan menyetor langsung ke Rekening Dana Investor (RDI) milik masing-masing Nasabah.

2. 3.

4.

4.

5. 6. 7. 8.

Nasabah mengisi Formulir Aplikasi IPO Saham pada huruf B dibawah ini dengan lengkap, jelas dan benar dan menanda-tanganinya. Formulir Aplikasi IPO Saham yang sudah ditanda-tangani berikut foto copy KTP atau SIM atau Paspor (untuk orang asing) yang masih berlaku, diserahkan kepada Kantor Cabang (bagi Nasabah dari Kantor Cabang) atau kepada Sales ( bagi Nasabah yang menggunakan jasa Sales) atau langsung kepada PT. Phillip Securities Indonesia Kantor Pusat u.p Divisi Corporate Finance melalui Fax No. 0 2 1 - 5 7 9 0 0 8 0 9 atau melalui email [email protected] (bagi Nasabah Kantor Pusat). Kantor Cabang dan Sales wajib membuat Rekapitulasi Pesanan Nasabah yang memuat : i). Nama Nasabah, ii). Kode Nasabah, iii). Jumlah Pesanan dalam lembar saham dan lot, iv). Nilai pesanan dalam Rupiah dan v). Keterangan tentang pembayaran. Rekapitulasi Pesanan Nasabah tersebut berikut foto copy KTP atau SIM Nasabah, diserahkan / dikirimkan kepada PT. Phillip Securities Indonesia Kantor Pusat (u.p Divisi Corporate Finance melalui Fax No. 0 2 1 - 5 7 9 0 0 8 0 9 atau melalui email [email protected] dengan tembusan kepada [email protected], selambat-lambatnya tanggal 7 Juni 2013 pukul 12.00 Wib. Dalam hal Formulir Pemesanan Pembelian Saham (FPPS) Asli yang diperoleh dari Lead Underwriter / Biro Administrasi Efek (BAE) jumlahnya terbatas, maka pelayanan kepada Nasabah akan dilaksanakan berdasarkan urutan waktu masuknya pesanan kepada Divisi Corporate Finance (first come first served). Formulir Aplikasi IPO Saham yang telah ditanda-tangani tidak dapat dibatalkan namun bukan berarti bahwa pesanan Nasabah akan dipenuhi, karena penjatahan merupakan keputusan dan wewenang mutlak dari Penjamin Pelaksana Emisi (Lead Underwriter). Untuk informasi hasil Penjatahan, silahkan menghubungi Divisi Corporate Finance melalui telepon No. 0 2 1 – 5 7 9 0 0 8 0 0 Pengembalian uang pemesanan (refund) dilaksanakan paling lambat 2 (dua) hari kerja setelah refund diterima in good funds dari Lead Underwriter. Refund tersebut akan ditransfer ke Rekening Dana Investor (RDI) milik masing-masing Nasabah. PT. Phillip Securities Indonesia tidak bertanggung-jawab dan tidak akan menindak-lanjuti pesanan Nasabah apabila tidak memenuhi persyaratan di atas, antara lain Dana Pembayaran di dalam Rekening Dana Investor (RDI) milik Nasabah tidak tersedia atau tidak mencukupi, data / informasi / Rekapitulasi Pesanan Nasabah / Foto copy KTP atau SIM Nasabah yang disampaikan tidak benar (salah) dan atau tidak jelas / tidak terbaca.

B. Formulir Aplikasi IPO Saham (Mohon agar diisi dengan lengkap dan jelas) ▪

Nama & Kode Nasabah

:

▪

No. KTP. / SIM

:

▪

Alamat sesuai KTP. /

:

Kode :

SIM / Paspor ▪

No. Telp./HP/Fax

:

▪

Alamat email

:

▪

Jumlah Pesanan

:

▪

Total Nilai Pemesanan

: Rp.

lembar

(

lot)

Tempat dan Tanggal : ....….…………,………….., …… Kantor Cabang / Sales :

Nasabah :

(…………………………………….)

(…………………………………….)

Nama & Tanda-tangan

Nama & Tanda-tangan