PT. Indah Kiat Pulp & Paper Tbk

Investor Kit

June 2012

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Company Profile

� Established as a joint venture in 1976, with the Sinar Mas Group acquiring 67% of total

shares in 1986

� Listed on the Jakarta and Surabaya Stock Exchange since 1990

� Has a fine paper mill in Perawang (Riau), a pulp and paper mill in Tangerang, and a

packaging mill in Serang (Banten)

� Sales outside Indonesia represents approximately 51% of total sales

� The annual BHK pulp production has grown from approximately 1.4 million tons in 1995

to 2.3 million tons by Dec 31, 2011

� The annual paper and packaging production capacity has grown from approx. 1.2 million

tons in 1995 to approx. 2.6 million tons as of Dec 31, 2011

� Currently, 52.7% owned by Purinusa

� Currently has approximately 16,500 employees

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� Currently produce various types of paper products, for example printing and writing

paper, and packaging products, such as containerboard and boxboard

� Produces BHK pulp which is the key raw material for paper products and is also used

in the production of packaging products

� The company’s principal printing and writing paper products are uncoated free-sheet

and cut-sized photocopier paper

� Both Perawang and Tangerang Paper Mills have a combined annual production

capacity of approximately 1,073,050 tons of printing and writing paper. Most of the

paper products are uncoated

� For the packaging products, the company produce ivory board, duplex board and

containerboard

� The packaging products at Serang Packaging Mill has an aggregate annual

production capacity of approximately 1,570,000 tons

Company Profile

3

Business Strategy

� Continued focus on key Asian markets

� Diversified sales to Europe and America

� Market driven expansion of production capacity

� Achieving and maintaining leading market position

� Continued focus on production efficiency

� Woods sustainability

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OPERATIONAL & FINANCIAL PERFORMANCEOPERATIONAL & FINANCIAL PERFORMANCE

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Financial Highlights

* In USD Million unless stated otherwise

2010 2011

Net Sales 2,510 2,560

Cost of Goods Sold 2,070 2,232

Gross Profit 439 328

Operating Expense 248 249

Operating Income 191 78

Other Income (Expenses) (117) (56)

Net Income (Loss) 13 16

Total Assets 5,925 6,319

Total Equity 2,007 2,023

Return on Investment 0.22% 0.25%

Return on Equity 0.65% 0.79%

Current Ratio 101% 106%

Debt to Equity 195% 212%

Debt to Assets 66% 68%

EPS 0.002 0.003

EBITDA 469 337

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2,100

683

1,365

1,984

696

1,393

2,260

781

1,561

2,206

844

1,468

-

500

1,000

1,500

2,000

2,500

2008 2009 2010 2011

Pulp Paper Packaging

Historical Production Volume

1,509

670

1,147

1,367

693

1,243

1,532

759

1,373 1,494

823

1,253

-

500

1,000

1,500

2,000

2008 2009 2010 2011

Pulp Paper Packaging •All are in thousand tons

Historical Sales Volume

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Sales by the Region

2011

2010

Local

49% Export

51%

Export

53%

Local

47%

Sales Composition

Africa

7%America

10%

Asia

62%

Australia

1%

Middle East

11%Europe

9%

Africa

4%America

9%

Asia

67%

Australia

1%

Europe

8%

Middle East

11%

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Our Brands

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THANK YOU