Financial Release TSPC FY 2023.pdf

The aforesaid increase in BI interest rates did not bode well for the Indonesian
economy because it tightens financial market liguidity and props up bank lending
interest rates, nevertheless it was able to lower the country high inflation rate from
5.51Yo in December 2022 down to 2.61Yo in December 2023, albeit the food and
beverage contribution towards total Indonesian inflation rate was still stubbornly high
at 6.18Yo in December 2023 which had eroded the consumers buying power.

Despite the above challenging market condition, Tempo Scan's FY 2023 net sales
had increased by 7.1”o and amounted to Rp.13,119.8 billion, such a result
was driven by its Pharmaceutical and Consumer Products & Cosmetics divisions' net
sales which respectively grew by 12.4Y6 and 8.8Y4, on the other hand its Distribution
division net sales grew marginally by 1.8Yo. Correspondingly, Tempo Scan's
FY'2023 operating profit has jumped by 48.2”o and amounted to Rp.1,079.8
billion.

Tempo Scan's FY 2023 aforesaid net sales performance major benefactors were as
follows:

1) Tempo Scan's Pharmaceutical division net sales performance remained
robust and it grew double digits by 12.490 and amounted to Rp.4,062.1
billion, such net sales growth was significantly higher when compared to its
growth in previous year whereas this division net sales grew by only 2.0Y6.

This division net sales growth main benefactor continued to be its Consumer
Health products group which net sales increased commendably by
12.9”/o and amounted to Rp.3,987.1 billion. This Consumer Health group's
commendable net sales increase was propelled by its Nutritional products' net
sales which has risen vigorously by 32.9”o year on year. The said
Nutritional products healthy sales growth was attributed by such products
nationwide consumers demand substantial increase in all sales channels and also
by wider geographical distribution penetration especially outside Java island.

On the other hand, its Consumer Health group's OTC and Vitamins products' net
sales marginally increased by 1.0Y6, such a marginal net sales growth was
relatively better compared to the Indonesian Pharmaceutical OTC
(Branded) market which registered a significant decline of 3.53Y6 in
2023, such a decline also commensurate the Indonesian Pharma retail sales which
had declined by 9Y6o year on year.

However, Tempo Scan expects that the abovementioned OTC market malaise will
be temporary, as the overall OTC market must went through a transition phase
from a high demand during Covid-19 pandemic to a normalize demand level during
Covid-19 endemic stage and eventually post Covid-19 period. The aforesaid
Optimistic view was manifested in Tempo Scan aggressive advertising & promotion

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2)

investment toward its OTC & VMS core brand eguities, as it took the opportunity
while competitors were reducing their marketing investments in 2023.

Moving on to Tempo Scan Pharmaceutical division's Prescription Medicines group
net sales which remained sluggish and it has declined by 7.4Y6 or lagging behind
the Indonesian Pharmaceutical Prescription drugs market which was able to grow
by 6.27Y6 (Branded & Unbranded). Henceforth in FY 2023 its net sales amounted
to Rp.75.0 billion. Correspondingly, in FY'2023 Tempo Scan's Consumer Health
products group and its Prescription Medicines group net sales contributions toward
its Pharmaceutical division's total net sales were 98.279 and 1.8Yo respectively.

In addition, this Pharmaceutical division's international business net sales had
increased by 21.6Y6 and amounted to Rp.288,7 billion, such net sales growth was
much higher compared to its growth in previous year which was 0.996.
Conseguently, the aforementioned international business net sales contribution
towards Tempo Scan's Pharmaceutical division total net sales had increased to
7.1Yo or higher compared to its contribution of 6.6Yo in previous year.

Tempo Scan's Consumer Products & Cosmetics (“CPC”) division was able
to deliver a commendable net sales growth with an increase of 8.8Yo and
amounted to Rp.4,119.8 billion. This division's net sales main benefactors
continued to be its Consumer Products group which net sales increased by 7.599
and amounted to Rp.3,296.4 billion, whilst its Cosmetics group's net sales delivered
a strong performance growth of 14.1”o and amounted to Rp.823.5 billion.

The CPC division core brand eguities products are well poised to face the FMCG
market evolving dynamic whereas the retail sales result in 2023 had indicated that
Price/Unit changeYo had declined significantly from 12Y6 in 2022 to become only
5Yo in 2023, therefore such a market dynamic indicated that substantial price
increase opportunity will be lesser in 2024.

Conseguently, the aforementioned Consumer Products group and Cosmetics group
net sales contributions toward Tempo Scan's CPC division's total net sales were
80.0Yo and 20.0Yo respectively in FY'2023, such a contribution was marginally
Changed when compared to these net sales contributions during 2022 which were
at 81.0Yo and 19.0Yo respectively.

For FY'2023, the CPC division's International Business net sales sustained its robust
growth following its sales performance positive turnaround which commenced in
1st Half 2022, and it registered a commendable double-digit net sales increase of
37.9Yo. Such a strong net sales performance was contributed by its
Consumer Products and Cosmetics which net sales have increased by
12.1”o and 45.6” respectively.

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3)Tempo Scan's Distribution division net sales grew marginally by 1.8Yo and
amounted to Rp.4,937.8 billion. Its main contributor of this division net sales growth
was its Non-Pharma Principals' products which net sales rose by 3.4Y9 and
amounted to Rp.4,540.3 billion, while on the other hand this division Pharma
Principals' products registered a decline of 13.8Yo and amounted to Rp.397.6 billion.
Correspondingly, the aforesaid Non-Pharma Principals' products and Pharma
Principals' products net sales contributions toward the Distribution division total net
sales stood at 91.9Y9 and 8.1Yo respectively.

Moving on to Tempo Scan's gross profit result which registered an increase
of 12.9/o and amounted to Rp.4,703.3 billion in FY 2023, such an increase
was significantly higher compared to its net sales growth rate, conseguently its gross
profit margin had increased to become 35.876 versus its gross profit margin
in the previous year which was 34.0Yo. Such gross profit margin increase was
attributed amongst others to its key raw materials prices declined in line with the
global commodity prices downward trend. Moreover, commencing in the beginning of
2023 Tempo Scan has commenced commercial production of its dairy spray drying
manufacturing facility, such a facility substitutes Tempo Scan's base powder milk
which was previously imported from Australia and New Zealand, therefore such
a facility has reduced considerably its cost of goods sold specifically for its infant
formula and children growing up milk products.

As pertained to Tempo Scan's total operating expenses for FY 2023, whereas its selling
expenses and general administrative expenses ratios stood at 21.6Yo and 4.7Yo
respectively, hence lower if compared to these ratios in corresponding period last year
which were 23.946 and 4.6Yo respectively. Moreover, its other operating
Income/(expenses) which net amount was negative by Rp.173.0 billion as such it was
a sharp contrast compared to its other operating income/(expenses) net amount that
was positive by Rp.50.8 billion in 2022. The abovementioned a net negative amount
was mainly caused by its unrealized foreign exchange (forex) losses which amounted
to Rp.65.3 billion in 2023 versus its unrealized foreign exchange gain that amounted
to Rp.129.7 billion in 2022, whereas its aggregate impact was Rp.195.0 billion.
Correspondingly, Tempo Scan's total operating expenses in 2023 had increased by
5.5Yo and amounted to Rp.3,623.5 billion

Notwithstanding the above, FY'2023 Tempo Scan's operating profit managed
to register an increase of 48.2Yo and amounted to Rp.1,079.8 billion, hence
its operating profit margin stood at 8.2” or a sharp increase versus its
operating margin of 5.9Yo in 2022. Albeit on proforma basis if the aforesaid
unrealized forex loss of Rp.65.3 billion would be excluded, conseguently Tempo Scan's
operating profit would be amounted to Rp.1,145.1 billion instead, which shall
represent a substantial increase of 91.2Yo year on year.

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Furthermore, its FY' 2023 net non-operating income had decreased and amounted to
Rp.523.3 billion or slightly lower compared to previous year which amount was
Rp.601,2 billion. As the result, Tempo Scan's 2023 net profit after tax has risen
by 17.6”o and amounted to Rp.1,177.4 billion, conseguently its net profit after
tax margin stood at 9.0Y6o or higher versus its net profit after tax margin in the previous
year which was 8.2Y6. Correspondingly, Tempo Scan's EBITDA had risen by
35.5Yo and amounted to Rp.1,401.8 billion, hence its EBITDA margin in
2023 stood at 10.7”o or higher compared to its EBITDA margin in previous
year which was at 8.470.

As pertained to Tempo Scan's balance sheet position as of 31 December 2023, it
remained solid whereas its cash and cash eguivalent position total amount stood at
Rp.3,694.2 billion or an increase of 6.0Yo compared to previous year. In addition, its
net operating cycle was at 72 days and need further improvement to be brought down.
Lastly Tempo's Scan total assets and shareholders' eguity were amounted to
Rp.11,315.7 billion and Rp.8,065.6 billion respectively.

Tempo Scan's Board of Directors would like to express our highest appreciation to all
Tempo Scan's Board Commissioners, its management team and all of its employees
for their continuous support, advise, dedication, commitment and hard works as well
as to our valued shareholders, business partners, vendors, customers and professional
parties.

Jakarta, 28 March 2024
On behalf of PT. Tempo Scan Pacific, Tbk.

&

I Made Dharma Wijaya
President Director

Copies:
- Mr. Handojo S. Muljadi, Tempo Scan's President Commissioner
- Tempo Scan's Board of Directors

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