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Attachment I
SUMMARY
PUBLIC EXPOSE
PT DIAMOND FOOD INDONESIA Tbk.
October 20, 2023
Recording Link
Public Expose of PT Diamond Food Indonesia Tbk. (the “Company”) was held on October 20, 2023, the
recording video can be accessed via the following link:
https://www.diamondfoodindonesia.com/public-expose
Public Expose was attended online by individuals, institution and the media.
Public Expose was opened with a presentation by the Company's Director Mr. Philip Min Lih Chen,
regarding Diamond Group at a glance and its operational performance for the first semester of 2023, and
the Company’s strategy. Followed by the President Director of the Company, Mr. Chen Tsen Nan regarding
the financial performance of the first semester of 2023 and presented Diamond Group's Corporate Social
Responsibility activities in 2023.
After the presentation, the Public Expose continued with a question and answer session through the Q&A
column that was provided and questions were answered live by the Company's Board of Directors, the
following is the essence of the question and answer session:
1. Questions from Mrs. Vina from Kontan Newspaper & Mrs. Pramudita R.N
In terms of CAPEX, how much CAPEX or capital expenditure is prepared for 2023? And what
percentage is the absorption or realization of capital expenditure? What is CAPEX utilization stands
for?
Answer:
For 2023, the Company has allocated CAPEX in line with previous years, with continuous adjustments
according to our strategic plan until the end of the year, and we plan to continue evaluating and adjusting
this allocation to optimize efficiency and growth. Meanwhile, until the end of Q2 2023, Diamond Group
has allocated funds of IDR 256 M which may increase as certain projects are completed until the end
of this year, this reflects effective financial management and careful planning and ensures we are ready
to face various business uncertainties.
2. Question from Mrs. Priscila Daniyati
Where do the capital expenditure (CAPEX) funds come from?
Answer:
The source of funding for the Company's capital expenditure in 2023 uses funding sources from internal
cash which is a positive financial result in previous years to finance these capital expenditure needs.
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3. Question from Mrs. Zahra Zardelia Where will the Company's capital expenditure (CAPEX) be allocated in 2023? Answer: Capital expenditure or CAPEX for 2023 is not only prioritized for routine annual needs but the Company is also focused on increasing facility capacity, including production and distribution facilities. This involves the procurement of new machinery and expansion of the warehouse in the MM 2100 Industrial Area, aimed at increasing the Company's competitiveness in the market. Apart from that, fund allocations are also made to meet follow-up project needs from the previous year, in line with the growing demand of the Indonesian market. 4. Questions from Mrs. Vina from Kontan Newspaper & Mr. Viki M. DMND targets to achieve double-digit revenue growth. What are the business projections for the rest of this year? Are you optimistic that the target will be achieved? What is the target for turnover and/or net profit at the end of 2023? Answer: The Company is confident of achieving double digit growth, though it may slightly differ from early target. Referring to the previous year's performance and the results achieved up to the third quarter of this year, the Company estimates that financial performance until the end of 2023 can be maintained or even improved. In line with this, we continue to anticipate various possibilities arising from external and internal factors that could influence the Company's performance, including market fluctuations such as exchange and commodity rates, changes in consumer spending preferences, global geopolitical tensions such as those occurring in Russia-Ukraine as well as the Middle East and global economic conditions that affect supply chains. Nevertheless, we are optimistic that based on existing trends, our financial prospects for the remainder of this year will continue to improve positively, in line with the Government's efforts to maintain stable prices of basic commodities which ultimately keeps people's purchasing power stable. 5. Question from Mrs. Vina from Kontan Newspaper & Mr. Ahmad Leo What are DMND's strategies to achieve this year's targets? You can explain what expansions the Company will carry out during 2023. What is the Company's strategy to increase revenue? Answer: The strategy that the Company will take as previously stated is by developing innovative products in the Company's various portfolios, then by expanding the distribution network, improving the quality of each product and service offered, and increasing operational efficiency to maintain competitiveness in the market, carry out careful planning, and pay attention to market developments and dynamic customer needs.
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6. Question from Mrs. Nadia Santoso How is the Company's financial performance? Answer: The Company's financial performance has been presented in our previous percentages. Until the second quarter of 2023, Revenue has increased by 11.44% compared to the same period in 2022, the Company's operating profit (EBIT) has decreased by 2.58% compared to the same period in 2022 and the Company's Profit (Net Profit) has experienced a decrease of 6.54% compared to the same period in 2022. 7. Question from Mrs. Maria Patricia How much is the Company's current reserve fund? Answer: At the AGMS for the 2022 financial year which was held on June 26, 2023, the Company made provisions for retained earnings of 20% of the total net profit for 2022, or IDR 76,421,000,000, this is in accordance with applicable law. The Company has paid attention to the need for reserve funds to anticipate various funding needs and support business sustainability and future growth. 8. Question from Mrs. Anna Putri With the view of the conditions previously described by Diamond management, how does Diamond management view the business prospects until the end of 2023? Answer: Management shows high optimism regarding business prospects until the end of 2023, driven by key factors such as positive national economic growth which is estimated to reach 5.2%, government initiatives to increase purchasing power through subsidy and social assistance policies, and increasing e-commerce penetration, expanding market coverage, as well as the trend of increasing health awareness which is fueling demand for healthier and more innovative FMCG products. However, Management continues to anticipate various possibilities arising from external and internal factors that could influence the Company's performance as explained in the previous explanation. 9. Question from Mr Tera D What is the impact of current economic conditions on the Company's performance? And how does management respond to this? Answer: The impact of current economic conditions on the Company's performance is quite significant and the majority is positive. Indonesia's economic growth, which is estimated to reach 5.2% in 2023, has provided a strong impetus for increasing consumer purchasing power. In addition, various government policies such as fuel subsidies and social assistance have facilitated public consumption, which directly and indirectly has had a positive impact on demand for the Company's products. Middle-class expansion and e-commerce penetration have also broadened our market reach while increasing health awareness among the masses adds to the appeal of the healthy and nutritious FMCG products we offer.
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We feel optimistic and proactive in taking advantage of this opportunity. We continue to innovate in
product development to meet the increasingly diverse and increasing needs of consumers. Overall, we
are committed to utilizing this positive momentum to improve the Company's performance and provide
added value to stakeholders.
10. Question from Mrs. Cindy Bella
How does the Company maintain customer loyalty?
Answer:
The Company is committed to strengthening customer loyalty through strategic integration which
includes an in-depth understanding of customer needs and preferences in shopping, guaranteed
consistent product quality, on-time delivery, competitive pricing, responsive customer service,
implementation of innovative loyalty programs, continuous adaptation based on feedback, everything
is designed to optimize customer value and experience to maintain customer loyalty.
11. Questions from Mrs. Vina Kontan Newspaper & Mrs. Theresia Putri
Related to the launch of new products. How many products are you launching this year in which product
segments? And what will the performance look like to earnings this year? Is there any plan for a new
product launching?
Answer:
From time to time, the Company always prioritizes innovation and plans in the long term to expand our
product portfolio across all our business lines, by following trends and consumer needs. To date, we
have launched the newest products in the form of new variants and new formats, such as Biokul to Go,
UHT Milk with Honey & Marshmallow flavors, Ice Cream with Mint with Chocolate Chip & Salted
Caramel, Riverland, Edo, and so on. Going forward, both this year and the following years, we will
continue to introduce new products that reflect our commitment to providing added value to consumers.
The Company believes this will strengthen the position and competitiveness of the Company's products
in the market.
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