MIRA INFORM REPORT

Report Date :

12.03.2011

IDENTIFICATION DETAILS

Correct Name :	P.T. HEINZ ABC INDONESIA

Registered Office :	Jalan Daan Mogot Km. 12, Cengkareng, Jakarta Barat, 11710

Country :	Indonesia

Date of Incorporation :	02.02.1999

Com. Reg. No.:	No. AHU-AH.01.10-17513

Legal Form :	Limited Liability Company

Line of Business :	Food Processing Industry

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	US$ 5,000,000

Status :	Moderate

Payment Behaviour :	No Complaints

Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Indonesia

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Name of Company

P.T. HEINZ ABC INDONESIA

company Address

Head Office & Factory I

Jalan Daan Mogot Km. 12

Cengkareng

Jakarta Barat, 11710

Indonesia

Phones - (62-21) 6191612 (Hunting)

Fax - (62-21) 6195126

E-mail - abc@abcfood.com

Land Area - 12,500 sq. meters

Building Space - 10,000 sq. meters

Region - Industrial Zone

Status - Owned

Factory II

Desa Walahar, Kecamatan

Karawang,

West Java

Indonesia

Phones - (62-267) 431431 (Hunting)

Fax - (62-267) 43143

Land Area - 14,500 sq. meters

Building Space - 12,000 sq. meters

Region - Industrial Zone

Status - Owned

Factory III

Jalan Bintaro

Gunung Gangsir, Kecamatan Beki

Pasuruan

East Java

Indonesia

Phones - (62-343) 656640-42, 656648-56

Fax - (62-343) 656969

Land Area - 15,000 sq. meters

Building Space - 13,000 sq. meters

Region - Industrial Zone

Status - Owned

Marketing Office

Jalan Peta Selatan No. 48 - A

Kalideres

Jakarta Barat, 11840

Indonesia

Phones - (62-21) 6197530, 6195354

Fax - (62-21) 6197538, 6197531

Building Area - 3 storey

Office Space - 300 sq. meters

Region - Commercial

Status - Owned

Date of Incorporation

2 February 1999

Legal Form

P.T. (Perseroan Terbatas) or Limited Liability Company

Company Reg. No.

The Ministry of Law and Human Rights

- No. AHU-67125.AH.01.02.TH.2008

Dated 22 September 2008

- No. AHU-AH.01.10-17513

Dated 13 October 2009

Company Status

Foreign Investment (PMA) Company

Permit by the Government Department

The Department of Finance

NPWP No. 01.882.487.0-092.000

The Department of Industry and Trade

No. 46/T/Industri/2001

Dated 5 February 2001

The Capital Investment Coordinating Board

- No. 42/1/PMA/1999

Dated 26 January 1999

- No. 224/II/PMA/2001

Dated 4 September 2001

- No. 449/III/PMA/2003

Dated 25 April 2003

Related Company

A Member Company of the ABC Group (see attachment)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : US$ 50,000,000.-

Issued Capital : US$ 28,000,000.-

Paid up Capital : US$ 28,000,000.-

Shareholders/Owners :

a. HEINZ SINGAPORE PTE, LTD. - US$ 18,200,000.-

Address : 50 Raffles Place No. 31-01

Singapore

b. WHELEER RESOURCES (S) PTE, LTD. - US$ 9,800,000.-

Address : 1 Scotts Road #24-10

Singapore

BUSINESS ACTIVITIES

Lines of Business :

Food Processing Industry

Production Capacity :

A. Initial Plant

a. Sweet Soy Sauces - 46,100,000 liters p.a.

b. Chili Sauces - 14,500,000 liters p.a.

c. Salty Soy Sauces - 2,600,000 liters p.a.

d. Other Sauces - 10,600,000 liters p.a.

e. Tomato Ketchups - 9,700,000 liters p.a.

f. Syrups Squashes - 58,200,000 liters p.a.

g. Tetrapack - 5,400,000 liters p.a.

h. Canned Juice/Spices Powder - 400,000 liters p.a.

i. Edible Oil - 200,000 liters p.a.

B. Expansion Plant

a. Sweet Soy Sauces - 68,930,000 liters p.a.

b. Salty Soy Sauces - 4,310,000 liters p.a.

c. Chili Sauces - 18,850,000 liters p.a.

d. Other Sauces - 13,780,000 liters p.a.

e. Tomato Ketchups - 12,610,000 liters p.a.

Total Investment :

A. Initial Plant

a. Equity Capital - US$ 28.0 million

b. Loan Capital - US$ 10.0 million

c. Total Investment - US$ 38.0 million

B. Expansion Plant

a. Equity Capital - None

b. Loan Capital - US$ 42.2 million

c. Total Investment - US$ 42.2 million

Started Operation :

1975 when it was operated by P.T. ABC CENTRAL FOOD INDUSTRY

Brand Name :

Heinz ABC

Technical Assistance :

HEINZ Singapore Pte, Ltd., Singapore

Number of Employee :

2,650 persons

Marketing Area :

Local - 80%

Export - 20%

Main Customer :

P.T. ASIATIC UNION PERDANA (Distributorships)

Market Situation :

Very Competitive

Main Competitors :

a. P.T. FOODEX INTI INGREDIENTS

b. P.T. GUNACIPTA MULTIRASA

c. P.T. INDOFOOD SUKSES MAKMUR Tbk

d. P.T. NESTLE INDONESIA

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank PANIN Tbk

Jalan Jend. Sudirman Kav. 11

Jakarta Pusat

Indonesia

b. P.T. Bank CENTRAL ASIA Tbk

Barclays Building

Jalan Jend. Sudirman Kav. 22-23

Jakarta Selatan

Indonesia

c. P.T. Bank NEGARA INDONESIA Tbk

Wisma 46-Kota BNI

Jalan Jend. Sudirman Kav. 1

Jakarta Pusat

Indonesia

d. JP MORGAN CHASE Bank

Plaza Chase

Jalan Jend. Sudirman Kav. 21

Jakarta Selatan

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – Rp. 1,720.0 billion

2009 – Rp. 1,795.0 billion

2010 – Rp. 1,850.0 billion

Net Profit (estimated) :

2008 – Rp. 103.2 billion

2009 – Rp. 107.7 billion

2010 – Rp. 120.2 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Nilesh Patel

Directors - a. Mrs. Endang Sulistiani AKA Endang Langheck

b. Mr. Anthony John Corthan Clark

c. Mr. Chu Jack Son

d. Mr. Vincent Kus Chu

e. Mr. Mohan Vegulaparanan

f. Mr. Pujiono Djojonegoro

Board of Commissioners :

President Commissioner - Mr. Choo Kok Guan

Commissioners - a. Mr. Leonard Anthony Culio JR

b. Mr. Stephen Sanford Clark

Signatories :

President Director (Mr. Nilesh Patel) or one of the Directors (Mrs. Endang Sulistiani AKA Endang Langcheck, Mr. Anthony John Corthan Clark, Mr. Chu Jack Son, Mr. Vincent Kus Chu, Mr. Mohan Vegulaparanan or Mr. Pujiono Djojonegoro) which must be approved by Board of Commissioner.

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

Credit Risk :

Average

Credit Recommendation :

Credit should be proceeded with monitor

Proposed Credit Limit :

Small amount – periodical review

Maximum Credit Limit :

US$ 5,000,000 on 90 days D/A

OVERALL PERFORMANCE

P.T. HEINZ ABC INDONESIA (P.T. HAI) was established in Jakarta in February 1999 with an authorized capital of US$ 50,000,000 issued and paid up capital of US$ 28,000,000. The founding shareholders are ASIA INVESTMENT CORPORATION of the USA and WHEELER RESOURCES LIMITED of British Virgin Island. The company notary deed had been changed a couple of times. In April 2003, both shareholders withdrew and into the company entered new shareholders namely WHELEER RESOURCES LTD. of British Virgin Island and HEINZ SINGAPORE PTE, LTD., of Singapore. The latest in September 2009, WHELEER RESOURCES LTD., of British Virgin Island pulled out and the whole share sold to WHELEER RESOURCES (S) PTE, LTD., of Singapore as new shareholder. With this time the composition of its shareholders has been changed to become HEINZ SINGAPORE PTE, LTD., of Singapore (65%) and WHELEER RESOURCES (S) PTE, LTD., of Singapore (35%). Concurrently the board of directors and the board of commissioner had been changed (see profile of this report). However the capitalization structure of the company remained the same. The latest revision of notary documents was made by Mr. Sutjipto, SH., a public notary in Jakarta and was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-17513 dated October 13, 2009.

WHELEER RESOURCES (S) PTE, LTD., Singapore is a private company based in Singapore dealing with investment management and business stakes is controlled by the ABC Group. The ABC Group or the INTERCALIN Group, is a large private business group in the country with main business in manufacturing and distribution of food products, dry cell battery, metal printing. The Group is also dealing with sanitary napkin making, cosmetic manufacturing, offset printing, etc.

Meanwhile HEINZ SINGAPORE PTE, LTD., is a member company of the HEINZ Group, a large sized business group based in the United States of America dealing with food processing industries.

P.T. HAI is a Foreign Capital Investment Company (PMA) to deal with food products industry such as syrup, soy-sauce, chili- sauce, tomato-sauce, juices, brewed and sweetened tea. Basically, P.T. HAI took over and continued the activities of its holding company P.T. ABC CENTRAL FOOD INDUSTRY which had been operating since 1975. It manages three plants each located at West Jakarta, 1 unit, Klari (West Java), 1 unit and Pasuruan (East Java), 1 unit. Before the taking over, the three plants had frequently been expanded to increase production capacity. The plant produces of sweet soy sauces, chili sauces, salty soy sauces, other sauces, tomato ketchups, syrups squashes, tetra pack, canned juices/spices powders and edible oils. All products are using well-known brand ABC. It has appointed its affiliated company P.T. ASIATIC UNION PERDANA as sole distributor and by which all ABC food products are distributed to dealers, sub-agents in all over big and small cities in the country. Particularly for fruit-juice is marketed with brand Del Monte under the licenses of DEL MONTE CORPORATION of San Francisco, the USA. Some 20% of the product is exported to Saudi Arabia, Taiwan, Australia, Holland, the USA, Singapore, New Zealand and other countries.

In September 2001 P.T. HAI got an expansion permit from the Capital Investment Coordinating Board (BKPM) to increase production of the above three plants, namely sweet soy sauces of 49.93 million liters for West Jakarta plant and 22.0 million liters for Pasuruan plant, East Java, salty soy sauces of 2.34 million liters for West Jakarta plant and 1.97 million liters for Pasuruan plant, East Java, chili sauces of 18.85 million liters, other sauces of 13.78 million liters, tomato ketchups of 12.61 million liters, the later three products for Karawang plant, West Java, per year respectively. This expansion has absorbed a total investment of US$ 42.25 million entirely coming from loans. The expansion plant has been operating gradually. P.T. HAI is the largest company in soy sauce, chili sauce and syrup industry. It has controlled a wide marketing network in all big and small cities in the country and its brand has been widely known among consumers.

In overall we find the demand for food products like soy sauce, chili sauce, tomato sauce, fruit juice and the likes had been rising by the average 6% to 8% per year within the last five years in line with the growth of supermarkets and a stable economic growth in the period. But since the global economic crisis and tight money policy being imposed by Bank Indonesia in October 2008 the demand was decreased within due to a poor economic condition, decreasing income per capita and a weak in public purchasing power. The demand was increasing in the early 2009 due to economic condition was gradually recovery in the country. The growth rate is now estimated at 5% to 7% per year. Market competition is very tight due to a large number of similar companies operating in the country. Business position of P.T. HAI is favorable for it has controlled a wide marketing network at home and abroad and its brand has been widely known among consumers in the country.

Until this time P.T. HAI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. HAI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2008 amounted to Rp. 1,720.0 billion rose to Rp. 1,795.0 billion in 2009 increased to Rp. 1,850.0 billion in 2010 and projected to go on rising by at least 5% in 2011.

The operation in 2010 yielded an estimated net profit of at least Rp. 120.2 billion and the company has an estimated total networth of at least Rp. 300.0 billion. We observe that P.T. HAI is supported by foreign partner with has financially strong and sound behind it. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.

The management of P.T. HAI is led by Mr. Nilesh Patel (52) a businessman and professional manager of India with experience in food and spices processing industry and trading. The company's management is handled by professional staff in the above business. They have wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. HEINZ ABC INDONESIA is sufficiently fairly good for business transaction.

Attachment:

List of the ABC or INTERCALLIN Group Members

1. ABC CENTRAL FOOD, P.T. (Investment Holding)

2. ABC PRESIDENT ENTERPRISES INDONESIA, P.T. (Animal Feed Compound Milling and Food Processing)

3. ADEI PLANTATION AND INDUSTRY, P.T. (Crumb Rubber Works)

4. AJINDOUNITEDFOODCORPORATION, P.T. (Processing of Extract Tea Powders, Instant Coffee, Soy Sauce Powder and Tomato Sauces)

5. ALFA Bank, P.T. (Banking) Inactive

6. ANCOL TERANG METAL PRINTING INDUSTRI, P.T. (Metal Printing and Can Making)

7. ANCOL TERANG MODERINDO, P.T. (Metal Printing and Trading)

8. ANCOL TERANG MODERINDO BEVERAGE CAN INDUSTRY, P.T. (Metal Printing and Can Making)

9. ANEKA PRIMA, C.V. (Trading)

10. ARJUNA TERANG PRIMA, P.T. (Pressurized Aluminum Can Industry)

11. ARTA BOGA CEMERLANG, P.T. (Food Processing)

12. ASIA BUANA TRAVEL & CO., Thailand (Tour and Travel Agency)

13. ASIASEJAHTERAPERDANAPHARMACEUTICAL, P.T. (Trading and Distributor of Health Drink)

14. ASIATIC UNION PERDANA, P.T. (Distributor of ABC Food Products)

15. AZO INTERNATIONAL (Pte), Singapore (Trading)

16. BRUSHINDO CEMERLANG, P.T. (Food Processing)

17. CITRABUANA UNGGUL, P.T. (Can Making)

18. DEWI PERTIWI OFFSET, P.T. (Offset Printing)

19. DHARMA WUNGU GUNA, P.T. (Integrated Palm Oil Plantation and Refinery)

20. DJOJONEGORO DWITUNGGAL, P.T. (Investment Holding)

21. EMBASSE PRIMA FOOD INDUSTRY, P.T. (Food Processing)

22. EVERBRIGHT, P.T. (Drycell Battery Manufacturing)

23. GOLDEN DRAGON, P.T. (Management Execution and Import)

24. GRAND PLAZA, P.T. (Hotelry)

25. HANIWELL MURNI, P.T. (Sanitary Napkin and Tissue Paper Manufacturing)

26. HARI TERANG, P.T. (Drycell Battery Manufacturing)

27. HEINZ ABC INDONESIA, P.T. (Food Processing Industry, Investment Holding)

28. INDONESIA PET BOTTLE, P.T. (Plastic and Glass Packaging Manufacturing)

29. INTERCALLIN, P.T. (Drycell Battery Manufacturing)

30. KDS INDONESIA, P.T. (Crystal Resonator Component Manufacturing)

31. MULTI KONTROL NUSANTARA, P.T. (Manufacturing of Telex/Off Automations, Data Communication, and other Control Systems; Constructions Services; Telephone Sets Manufacturing)

32. PANGAN MAS INTI PERSADA, P.T. (Flour Milling Processing)

33. PETINDO JAYA SAKTI, P.T. (PET Plastic Container Manufacturing and Investment Holding)

34. PURI NGAYOJOKARTO, P.T. (Hotel and Restaurant Management)

35. SINAR AUTO LAMP, P.T. (Auto Lamp Manufacturing)

36. SINARSINATAELECTRONICINDUSTRY, P.T. (Electrical Goods Manufacturing)

37. SIN TONG TRAVEL SERVICES, Singapore, P.T. (Tour and Travel Bureau)

38. SUMATRA ENAMEL FACTORY, P.T. (Enamel Manufacturing)

39. SUMATRA MATCH FACTORY, P.T. (Safety Matches Manufacturing)

40. ULTRA PRIMA ABADI, P.T. (Manufacturing of Pressure Lamp Mantel, Tooth Brushes and Tooth Pastes)

41. UNIJAYA (KAMPUT), P.T. (Trading)

42. VISTA METAL, P.T. (Steel building Material Manufacturing)

43. Etc.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.21
UK Pound	1	Rs.72.55
Euro	1	Rs.62.43

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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