MIRA INFORM REPORT

Report Date :

13.09.2014

IDENTIFICATION DETAILS

Name :	P.T. AJEINDONESIA
Registered Office :	Delta Silikon II Industrial Park Jalan Damar Block F 1-A Lippo Cikarang, Bekasi, 17550 West Java
Country :	Indonesia
Date of Incorporation :	September 2010
Com. Reg. No.:	1129/III/PMA/2009
Legal Form :	Limited Liability Company
Line of Business :	Subject is a Soft Drink Processing and Bottling Industry
No. of Employees	278

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Indonesia	B1	B1

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

INDONESIA ECONOMIC OVERVIEW

Indonesia, a vast polyglot nation, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

Source : CIA

Company name

P.T. AJEINDONESIA

address

Head Office & Factory

Delta Silikon II Industrial Park

Jalan Damar Block F 1-A

Lippo Cikarang, Bekasi, 17550

West Java

Indonesia

Phones - (62-21) 3048 5800 (Hunting)

Fax - (62-21) 8990 3345

Land Area - 12,000 sq. meters

Office Space - 9,500 sq. meters

Region - Industrial Estate

Status - Rent

Date of Incorporation :

28 August 2009

Legal Form :

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

Company Reg. No. :

The Ministry of Law and Human Rights

- No. AHU-45217.AH.01.01.TH.2009

Dated 14 September 2009

- No. AHU-AH.01.10-13010

Dated 27 March 2014

Company Status :

Foreign Investment (PMA) Company

Permit by the Government Department :

The Department of Finance

Not Available

The Capital Investment Coordinating Board

- No. 862/I/PMA/2009

Dated 21 July 2009

- No. 1129/III/PMA/2009

Dated 24 August 2009

Related Company :

KINLEST INVESTMENTS, S.L., Spain (Investment Holding)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : US$ 4,560,000.-

Issued Capital : US$ 1,185,000.-

Paid up Capital : US$ 1,185,000.-

Shareholders/Owners :

a. KINLEST INVESTMENTS S.L. - US$ 1,183,815.-

Address : Paseo de Gracia 103

Planta, 08008, Barcelona

Spain

b. AJEFIN B.V. - US$ 1,185.-

Address : Amsterdam, Noord-Holland

1082 MS The Netherlands

BUSINESS ACTIVITIES

Lines of Business :

Soft Drink Processing and Bottling Industry

Production Capacity :

BIG Cola - 310 million liters per annum

Total Investment :

a. Equity Capital - US$ 1.2 million

b. Loan Capital - US$ 10.8 million

c. Total Investment - US$ 12.0 million

Started Operation :

September 2010

Brand Name :

AjeIndonesia (Big Cola)

Technical Assistance :

AJEGROUP, Spain

Number of Employee :

278 persons

Marketing Area :

Local - 100%

Main Customer :

Trading and Distribution of Food & Beverages

Market Situation :

Very Competitive

Main Competitors :

a. P.T. ASIASEJAHTERA PERDANA PHARMACEUTCIAL

b. P.T. COCA-COLA BOTTLING INDONESIA

c. P.T. NALA VINA EKA BEVERAGES

d. P.T. POLARI LIMUNUSAINTI

e. P.T. PEPSI COLA INDONESIA

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

B a n k e r :

P.T. Bank CENTRAL ASIA Tbk

Menara BCA Grand Indonesia

Jalan M.H. Thamrin No. 1

Jakarta Pusat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2011 – Rp. 119.0 billion

2012 – Rp. 132.0 billion

2013 – Rp. 145.0 billion

Net Profit (estimated) :

2011 – Rp. 4.7 billion

2012 – Rp. 6.6 billion

2013 – Rp. 8.7 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Charly Federico Canales Larrea

Director - Mr. Hernan Augusto Cordova Solis

Commercial Manager - Mr. Aswan Nasution

Marketing Manager - Mr. Agit Atriantio

Board of Commissioners :

Commissioner - Mr. Carlos Enrique Ananos Jeri

Signatories :

President Director (Mr. Charly Federico Canales Larrea) or the Director (Mr. Hernan Augusto Cordova Solis) which must be approved by Board of Commissioner

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

Credit Risk :

Average

OVERALL PERFORMANCE

P.T. AJEINDONESIA was incorporated in Jakarta based on notary deed of Ms. Maria Cecilia Rina Jahya, SH., No. 06 dated 28 August 2009 with the authorized capital of US$ 4,560,000 issued capital of US$ 1,185,000 fully and paid up. The founding and shareholders of the company are KINLEST INVESTMENTS S.L., of Spain (99.9%) and Mr. Charly Federico Canales Larrea (0.1%). The company notary deed has been changed and according to the revision of notary deed Mrs. Fransiska Lilis Harja, SH., in February 2014 Mr. Charly Federico Canales Larrea withdrew and replaced by AJEFIN B.V., of Netherlands as new shareholder. With this time the composition of its shareholders has been changed to become KINLES INVESTMENTS SL of Spain (99.9%) and AJEFIN B.V., of Netherlands (0.1%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-13010 dated March 27, 2014.

P.T. AJEINDONESIA is a member company of the AJEGROUP Spain started to be operating since September 2010 dealing with soft drink processing and bottling industry. The plant is located at Delta Silikon II Industrial Park, Jalan Damar Block F1-A, Lippo Cikarang, Bekasi, West Java standing on a land of 12,000 sq. meters. The plant produces of soft drink of 70,000 bottles per day by using BIG COLA brand, a brand license from AJEGROUP, Spain. AJEGROUP was founded 23 year ago it is a multinational industry with a corporate presence in Spain and in 20 other countries. The cope with all markets, the company has 22 factories, more than 10,000 employees and 120 company-owned distribution centers. An infrastructure that serves over one million point of slae, and allow each year to sell three billion liters of beverages, including beer, sof drinks, energy drinks, waters, juices and tea.

In the early stage of BIG COLA market targeting traditional markets in Jakarta, Bekasi, Depok, Tangerang, Centraal Java and East Java. After that, BIG COLA will targets on modern markets as well as Sumatera and other island. The BIG COLA price more than competitive than other brands such as COCA-COLA, PEPSI-COLA who first mastered the Indonesian market. BIG COLA strawberry flavor content for 535 ml is Rp. 3000, while the other brands with the same volume of Rp. 6,000. Mr. Agit Atriantio, Marketing Manager of the company explained that the BIG COLA will try to control about 4% carbonated beverage market in the country. But the BIG COLA love to compete with COCA-COLA and PEPSI-COLA are already carbonated beverages market share in the country. We note that the BIG COLA is a carbonates beverage company is small where the operation was not good and besides most of the factory workers protest asking for a raise and small portion laid off. This is caused BIG COLA has not been able to compete with similar drinks COCA-COLA already mastered the carbonated drinks market in the country.

On the whole, we find that the domestic demand for soft drinks has been rising by about 8% to 10% per year in the last five years. The expanding demand is closely correlated with the rising income of the population and the continuous growth of the Indonesian economy. On the other hand, the soft drinks business is intensely competitive on account of the many soft drink plants now in operation in the country. We note that BIG COLA soft drink has been receiving strong competition in the market from COCA-COLA soft drink produced by P.T. COCA COLA BOTTLING INDONESIA, PEPSI soft drink produced by P.T. PEPSI COLA INDOBEVERAGES, RC COLA soft drink produced by P.T. NALA VINI EKA BEVERAGES etc. P.T. AJEINDONESIA is not good because BIG COLA has yet been controlled marketing and distribution in the country.

Production of Soft Drinks (Carbonated) in

Indonesia, 2007 – 2013*

Year	Million Liters
2007	14,319
2008	15,282
2009	16,342
2010	17,531
2011	18,860
2012	20,357
2013	22,392

Until this time P.T. AJEINDONESIA has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of the company is very reclusive towards outsiders and rejected to disclose its financial condition. We estimated that total sales turnover of the company in 2011 amounted at Rp. 119.0 billion, increased to Rp. 132.0 billion in 2012 to Rp. 145.0 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 8.7 billion and the company has an estimated total networth of at least Rp. 47.0 billion. 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. AJEINDONESIA is led by Mr. Charly Federico Canales Larrea (44) a businessman and professional manager with experience in soft drinks processing and distribution. Daily activity he is assisted by Mr. Hernan Augusto Cordova Solis (42) as professional manager of Peru. 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. AJEINDONESIA is sufficiently fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.84
UK Pound	1	Rs.98.72
Euro	1	Rs.78.64

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIS

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
--	NB	New Business	--

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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