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ANNUALREPORT LAPORAN TAHUNAN 2016

CONTENTDAFTAR ISI

02 ANNUAL REPORT Laporan Keuangan 2016

Profil Perusahaan - Company’s Profile

Misi - Mission

Analisa dan Diskusi Manajemen - Mangement Discussion & Analysis

Tata Kelola Perusahaan - Good Corporate Governance

Laporan Keuangan - Financial ReportKomposisi Pemegang Saham - Shareholders Composition

Informasi Perusahaan

Ikhtisar Keuangan - Financial Highlight

Laporan Manajemen - Management Report

Laporan Komisaris - Report from Board of Commissioners

Laporan Direksi - Report from Board of Directors Profil Dewan Komisaris - Profile of Board Commissioners

Profil Dewan Direktur - Profile of Board Directors

Tanggung Jawab Laporan Tahunan - Responsibility for Annual Report

Sejarah Singkat - Brief History

Kronologis Pencatatam Saham - Chronology of the company’s Stock Listing

Tinjauan Bisnis - Bussiness Overview Kinerja Operasi Perusahaan - The Company’s operating Performance Pabrik - Technical Operation Pemasaran - Marketing Tinjauan Keuangan - Financial Overview Posisi Keuangan - Financial Position Arus Kas - Cash Flow Belanja Modal - Capital Expenditure

15 Rapat Umum Pemegang Saham - General Meeting of Shareholders16 Dewan Komisaris - Board of Commissioners16 Komite Audit - Audit Commitee17 Dewan Direktur - Board of Directors18 Sekretaris Perusahaan - Corporate Secretary18 Lembaga & Profesi Penunjang Pasar Modal - Capital Market Supporting Institutions & Professions 19 Pengawasan Internal - Internal Audit TPI Whistleblowing Service21 Kode Etik - Code of Conduct 22 Struktur Organisasi - Organization Chart

06 - 07

05

04

03

10

09

08

11

11

1212

13

141414

77

23

20

BETTER QUALITY

OF LIFE

Memberikan sumbangan bagi masyarakat dengan membuat dan menawarkan produk-produk farmaseutikal dan kesehatan serta informasi dan layanan

kesehatan yang superior dalam cara yang bertanggung jawab secara sosial sehingga memperkaya kehidupan manusia

melalui peningkatan kesehatan dan kecantikan.

To contribute to society by creating and offering superior pharmaceuticals and health-related products as well as healthcare-related information and services in socially

responsible ways that enrich people's lives by improving health and beauty.

Mission

Misi


Ikhtisar KeuanganFinancial Highlight

(Dalam Jutaan rupiah kecuali Laba Bersih Per Saham)(Expressed in Million Rupiah,except Earning Per Share)

566,566 10%

Penjualan bersih% perubahan

514,708 3%

Laba kotor% perubahan

317,232 7%

296,019 0%

Laba sebelum pajak penghasilan% dari penjualan

219,852 39%

Laba komprehensif% dari penjualan

164,299 29%

16,146 11%

Laba bersih per saham-dalam rupiah penuh% dari perubahan

Dividen per saham - dalam rupiah penuh% dari dividen/laba bersih

Modal kerjaAset tetapJumlah asetJumlah ekuitas

Jumlah Kewajiban

Rasio Laba TerhadapJumlah aset (%)

Rasio Laba TerhadapEkuitas(%)

Rasio lancar

Rasio Kewajiban terhadap Ekuitas(%)

Rasio Kewajiban terhadap jumlah aset(%)

Modal Saham

Net Sales% Change

198,630 39%

148,661 29%

14,529 -11%

497,502 17%

295,520 13%

220,107 44%

164,808 33%

16,314 10%

426,436 10%

261,620 12%

199,482 47%

149,521 35%

14,822 10%

387,535 13%

233,052 10%

180,898 47%

135,249 35%

13,439 11%

xxx

xxx

270,082 86,022

479,234 354,830

124,404

34%

46%

3.37

35%

26%

10,240

16,000

110%

263,19690,312

464,028 354,053

109,974

32%

42%

3.57

31%

24%

10,240

36%

45%

4.37

25%

20%

10,240

35%

43%

4.97

21%

18%

10,240

34%

42%

4.85

22%

18%

10,240 Capital Stock

Ratio of Total Liabilities toTotal Assets(%)

Gross profit% Change

Profit before income tax% of sales

Comprehensive Income% of sales

Earning per share - in full rupiah% Change

16,000

98%

282,37487,175

459,353 368,879

90,474

14,000

94%

262,811 87,590

421,188 347,052

74,136

12,500 93%

244,084

84,893

397,144

325,359 71,785

Dividend per share - in full rupiahPay Out Ratio

Working capitalFixed AssetsTotal AssetsTotal Equity

Total Liabilities

Ratio of Total Profit toTotal Assets (%)

Ratio of Total Profit toShareholders' Equity (%)

Current Ratio

Ratio of Total Liabilities toShareholders' Equity (%)

2016 2015 2014 2013 2012


Laporan Dewan KomisarisReport from Board of Commissioners

Dewan Komisaris puas dengan kinerja Perusahaan dengan pencapaian dua digit pertumbuhan dalam Penjualan sebesar 10% dan Laba sebelum pajak sebesar 11% dibandingkan tahun 2015.

Dengan mempertahankan posisi di pasar domestik untuk produk-produk OTC, melihat peluang pertumbu-han baru dan memperkuat kinerja sebagai produsen bagi pasar ekspor di Asia Tenggara, perusahaan berada pada jalurnya dalam memberikan nilai yang berkesinambungan dan meningkat kepada para pemegang saham untuk tahun-tahun mendatang.

Industri farmasi di Indonesia masih memiliki peluang yang baik untuk terus bertumbuh. Kami juga menilai besarnya kemampuan Dewan Direksi untuk memetakan berbagai risiko yang dapat mempengaruhi pertumbuhan sehingga sesuai dengan ekspektasi. Kami beranggapan bahwa Dewan Direksi telah mene-tapkan target berdasarkan hasil analisa dari berbagai aspek, baik kondisi internal dan eksternal perusa-haan.

Untuk menjamin kelangsungan bisnis jangka panjang, Perusahaan selalu menekankan pentingnya pene-rapan tata kelola perusahaan yang baik (GCG). Perusahaan terus menjunjung tinggi penerapan dan pe-negakan nilai-nilai GCG sesuai dengan praktik terbaik sebagai dasar yang kuat untuk mempertahankan pertumbuhan dalam jangka panjang.

Kami memberikan apresiasi kepada Dewan Direksi dan karyawan atas loyalitas, dedikasi dan upaya dalam pencapaian yang baik di tahun 2016 dan beberapa tahun terakhir ini.

Dewan Komisaris juga menyampaikan apresiasi yang tinggi kepada para pemegang saham, pelanggan dan semua pemangku kepentingan lainnya, atas kepercayaan dan dukungannya kepada Perusahaan.

The Board of Commissioners is satisfied with the Company performance for achieving double digit growth in Sales by 10% and Profit before tax by 11% versus 2015.

By maintaining its position in the domestic market for OTC products, seizing new growth opportunities and strengthening performance as manufacturer of products for export markets in Southeast Asia, the Compa-ny is well on track to deliver sustained value to the shareholders in the years to come.

The pharmaceutical industry in Indonesia continues to offer good opportunities to grow. We have assessed the adequacy of the Board of Directors in mapping various risks that could affect the Company’s growth potential. We consider that the Board of Directors has set targets based on result of analysis of various aspects including internal and external conditions of the Company.

To ensure long term business continuity of the Company we always emphasize the importance of imple-menting good corporate governance (GCG). The Company continues upholding the application and enforcement of GCG values in accordance with best practices as a strong foundation for sustaining growth in the long term.

We express appreciation to the Directors and employees for their loyalty, dedication and efforts to record a good performance in 2016 as well as over the past years.

Board of Commissioners also extends the highest appreciation to shareholders, customers and all our other stakeholders, for their vote of confidence and steady support to the company.

Jakarta 19 April 2017Komisaris / Commissioner

Masahiro Mino


Laporan Dewan Direksi

Pemegang Saham yang terhormat,

Dengan ini kami sampaikan Laporan Tahunan PT Taisho Pharmaceutical Indonesia Tbk untuk tahun 2016 beserta Laporan Keuangan yang telah diaudit oleh KAP Tanudiredja, Wibisana, Rintis & Rekan (PwC Indo-nesia).

Pada tahun 2016 Perusahaan berhasil meningkatkan penjualan bersih sebesar 10% dibandingkan tahun 2015, yaitu dari Rp 514, 7 miliar menjadi Rp 566,6 miliar. Peningkatan penjualan ini terutama didorong dengan mempertahankan penguasaan atas produk OTC “Counterpain” dan “Tempra” di pasar domestik dan memperkuatnya kinerja sebagai produsen untuk pasar ekspor di Asia Tenggara. Produk etikal juga memberikan kontribusi dalam pertumbuhan penjualan yaitu dengan kekuatan brand Kenacort, Kenalog dan Mycostatin.

Sejalan dengan pertumbuhan penjualan, laba sebelum pajak juga mencatat kenaikan 11% menjadi Rp 219,8 miliar dan mempertahankan profitabilitas yang sehat untuk rasio penjualan sebesar 38,8%.

Aset perusahaan meningkat menjadi Rp 479,2 miliar dari sebelumnya sebesar Rp 464 miliar. Peningkatan aset ini diikuti oleh peningkatan kewajiban perusahaan. Total kewajiban pada akhir tahun sebesar Rp 124,4 miliar dan perusahaan memiliki rasio lancar yang sehat yaitu sebesar 3,37.

Kami terus memperkuat promosi pada produk utama untuk mempertahankan pangsa pasar yang sehat di pasar domestik dan mendorong pertumbuhan perdagangan di modern channel selain dari apotek dan toko obat.

Selain itu, investasi pada fasilitas manufaktur juga merupakan bagian dari rencana perusahaan untuk meningkatkan kapasitas dan memperkuat budaya kualitas yang berkesinambungan.

Dengan tantangan-tantangan yang telah dihadapi oleh industri farmasi di tahun-tahun sebelumnya, kami percaya perusahaan akan memberikan pertumbuhan positif di tahun 2017, sejalan dengan kinerja yang baik dalam beberapa tahun terakhir ini.

Dengan memperkuat komitmen kami dalam praktik bisnis yang etis, maka mempertegas program untuk memastikan semua pekerja kami mentaati Kode Etik dan mewujudkan standar yang tinggi dalam peker-jaan sehari-hari mereka.

Perusahaan dengan seksama dan sungguh sungguh memastikan ketaatan prinsip-prinsip tata kelola perusahaan yang baik (GCG), hal ini merupakan hal penting untuk bisnis yang keberlanjutan serta reputa-si perusahaan. Perusahaan selalu memastikan laporan keuangan dan laporan lainnya telah memenuhi persyaratan terkait GCG serta standar kode etik yang diharapkan oleh Pemegang Saham.

Kami sampaikan terima kasih kepada para penyedia, distributor dan seluruh rekan kerja atas dukungan pada misi “Dedikasi pada kualitas kehidupan yang lebih baik”.

Ucapan terimakasih kami sampaikan juga kepada para pemegang saham atas dukungannya, kepada konsultan hukum Ibu Kartini Muljadi S.H., dan kepada auditor kami KAP Tanudiredja, Wibisana, Rintis & Rekan.

Penghargaan khusus kami sampaikan kepada Dewan Komisaris dan kepada semua karyawan atas dedi-kasinya yang merupakan peranan yang menjadi pilar utama Perusahaan dalam menghasilkan produk serta layanan yang berkualitas tinggi.

Jakarta 19 April 2017 Presiden Direktur


Report from Board of Directors

Jakarta 19 April 2017Presiden Direktur/President Director

Dear Shareholders,

It’s great pleasure to present Annual Report of PT Taisho Pharmaceutical Indonesia Tbk., for 2016 togeth-er with the Financial Statement audited by KAP Tanudiredja, Wibisana, Rintis & Rekan (PwC Indonesia).

In 2016 the Company was able to grow Net Sales by 10% versus 2015 i.e. from IDR 514.7 billion to IDR 566.6 billion. The growth in sales was mainly driven by maintaining leadership in key OTC brands “Counterpain” and “Tempra” in the Domestic market and strengthening performance as the manufacturer of products for export markets in Southeast Asia. Ethical products also contributed to growth of sales with strong brands Kenacort, Kenalog and Mycostatin.

In line with the sales growth, the Profit before tax also recorded 11% increase to IDR 219.8 billion and maintained a healthy profitability to sales ratio of 38.8%.

Assets increased to IDR 479.2 billion from IDR 464 billion. Increase in asset was followed by increase in liability. Total liabilities at year end amounted to IDR 124.4 billion and the Company maintained healthy current ratio of 3.37.

We continue to sustain promotion spending on key products to maintain healthy market share in domestic market and driving channel growth, e.g. modern trade channel apart from pharmacies and drug stores

In addition, investment in manufacturing facility was also sought as part of company’s plan to increase the capacity and strengthen our sustainable culture of quality.

Even with the number of challenges that the pharmaceutical industry faced in previous years we believe the company will deliver a positive growth in 2017 in line with the performance in the past few years. We reinforced our commitment to ethical business practices, strengthening our program to ensure that associates follow our Code of Conduct and embody high standards in their daily work.

The Company has been very particular and thorough in its efforts to comply with principles of good corpo-rate governance (GCG), which has important role for the company’s business sustainability as well as company’s reputation. Thus the Company ensured the reliability of financial statements and other reports has otherwise complied with the requirement regarding GCG and with the ethical standards and codes expected by Shareholders.

We thank our suppliers, distributor, and all of our colleagues for your continued support to our mission “Dedicated to better quality of life”.

Our thanks also to our shareholders for your support, our legal consultant Mrs. Kartini Muljadi, SH., and to our auditor KAP Tanudiredja, Wibisana, Rintis & Rekan.

Our special appreciation to the Board of Commissioners, and our employees for their dedication which plays an enormous role in our ability to produce high quality products and services.


Profil Dewan KomisarisProfile of Board of Commissioners

Masahiro MinoKomisaris UtamaPresident Commissioner

Naoaki SuganoKomisarisCommissioner

Agus SoewandonoKomisaris IndependenIndependent Commissioner

Masahiro Mino joined Taisho Co., Ltd. in 2010 as the General Manager of Treasury Division Prior to joining Taisho, he worked for The Sumitomo Mitsui Banking Corporation.

Education: Keio University, graduated in 1980.

Bapak Naoaki Sugano bergabung dengan Taisho Co., Ltd. sejak tahun 2002. Posisinya sebagai General Manager pada Business Planning Division. Sebelum bergabung dengan Taisho, beliau beker-ja di Toyama Chemical Co.,Ltd.

Latar belakang pendidikan : Kitasato University School of Pharmacy , lulus pada tahun 1991.

Naoaki Sugano joined Taisho Co., Ltd. in 2002 as General Manager in Business Planning Division.Prior to joining Taisho, he worked for the Toyama Chemical Co.,Ltd.

Education: Kitasato University School of Pharmacy , graduated in 1991.

Bapak Agus Soewandono bergabung dengan PT Taisho Pharma-ceutical Indonesia Tbk pada tahun 2015. Beliau adalah mantan Peneliti Senior pada Badan Penelitian dan Pengembangan Keseha-tan di Kementrian Kesehatan Republik Indonesia serta aktif dalam berbagai Komite Ad Hoc di pemerintahan dan di beberapa badan kesehatan internasional. Saat ini, beliau juga mengajar di Universi-tas Diponegoro dan beberapa universitas lainnya di Indonesia.

Pendidikan: University of Hawaii at Manoa, Amerika Serikat – lulus 1986; Universitas Diponegoro, Indonesia – lulus tahun 1975

Agus Suwandono joined PT. Taisho Pharmaceutical Indonesia Tbk in 2015. He is a former Senior Scientist/Researcher, National Institute of Health Research (NIHRD) & Development, MOH, Indonesia, actively involved in various government Ad Hoc committees and several inter-national health organizations. Currently, he is a lecturer in Dipone-goro University and several other universities in Indonesia.

Education: University of Hawaii at Manoa, graduated 1986; Dipone-goro University, graduated in 1975.

on

ner

Bapak Masahiro Mino bergabung dengan Taisho Co., Ltd. sejak tahun 2010, sebagai General Manager pada Divisi Treasury. Sebe-lum bergabung dengan Taisho, beliau bekerja pada Sumitomo Mitsui Banking Corporation.

Latar belakang pendidikan: Keio University, Jepang, lulus tahun 1980.


Profil Dewan Direktur

Jun KurodaPresiden DirekturPresident Director

Masashi NakauraDirekturDirector

Adeel A. HassanDirekturDirector

Julizar JunaldyDirektur IndependenIndependent Director

Profile of Board of DirectorsBapak Jun Kuroda memiliki lebih dari 25 tahun pengalaman market-ing di Taisho Co., Ltd. Beliau telah malang-melintang pada berbagai subsidiary Taisho di Amerika dan Eropa. Pada saat ini, beliau menja-bat sebagai Executive Officer, International Business Headquarters.

Pendidikan: Management School - Golden Gate University, Amerika Serikat, lulus tahun 1983.Jun Kuroda has 25 years of marketing experience with Taisho Co., Ltd. He worked for Taisho’s subsidiaries in USA and Europe. He is currently in the position of Executive Officer, International Business Headquarters.

Education: Management School - Golden Gate University, USA, graduated in 1983.

Bapak Masashi Nakaura bergabung dengan Taisho Co., Ltd. pada tahun 2001 sebagai Presiden Direktur PT Taisho Indonesia. Sebe-lum menjadi Direktur pada PT Taisho Pharmaceutical Indonesia Tbk, beliau adalah Presiden Direktur pada Taisho Pharmaceutical Inc. Philippines.

Pendidikan: Sophia University, Jepang, lulus tahun 1981Masashi Nakaura joined Taisho Co. Ltd. in 2001 as President Director of PT Taisho Indonesia. Prior to joining as Director in PT Taisho Phar-maceutical Indonesia Tbk, he held the position of President Director of Taisho Pharmaceutical Inc. Philipines.

Education: Sophia University, Japan, graduated in 1981

Bapak Adeel A Hassan bergabung dengan PT Taisho Pharmaceuti-cal Indonesia Tbk pada tahun 2009. Sebelum bergabung dengan Taisho, Bapak Adeel memegang jabatan Regional Finance Director, Bristol-Myers Squibb Asia-Pacific Distributor Markets.

Pendidikan: Karachi University, Pakistan, lulus tahun 1989. Bapak Adeel Hassan memiliki sertifikasi CPA dan CMA.Adeel A. Hassan joined PT Taisho Pharmaceutical Indonesia Tbk in 2009. Before joining as a Director in Indonesia, he held the title of Regional Finance Director, Bristol-Myers Squibb Asia-Pacific Distributor Markets.

Education: Karachi University, Pakistan, graduated in 1989. Mr. Hassan is a holder of ACA and ACMA.

Bapak Julizar Junaldy bergabung dengan PT Taisho Pharmaceutical Indonesia Tbk pada 1 Januari 2010. Sebelum bergabung dengan Taisho, Bapak Julizar memegang jabatan sebagai Business Director untuk Singapore-Malaysia-Indonesia di PT. Bristol Myers Indonesia.Per 20 Desember 2016, mengundurkan diri dari Direktur perusa-haan.

Pendidikan: Universitas Krisna Dwipayana, Jakarta lulus tahun 1983.Julizar Junaldy joined PT Taisho Pharmaceutical Indonesia Tbk in January 1,2010. Before joining Taisho Pharmaceutical Indonesia he held the position as Business Director for Singapore-Malaysia- Indo-nesia in Bristol Myers Indonesia.Effective 20 December 2016, Bapak Julizar Junaldy resigned from his position as a Director

Education: Krisna Dwipayana University, Jakarta, graduated in 1983.

n


Surat Pernyataan Dewan Komisaris dan Dewan Direksitentang tanggung jawab atas

Laporan Tahunan 2016

Board of Commissioners’ and Board of Directors’ Statementon relating to the responsibility on

The 2016 Annual Report

Menyatakan bahwa:Kami bertanggung jawab atas Laporan Tahunan ini,

termasuk Laporan Keuangan yang terdapat di dalamnya

State that: We are responsible for this Annual Report, including the accompanying the Financial Report

Presiden Direktur/President Director

Jun Kuroda

Direktur/Director

Masashi Nakaura Adeel A. Hassan

Presiden Komisaris/President Commissioner

Masahiro Mino

Komisaris Independen/Independent Commissioner Komisaris/ Commissioner

Agus Soewandono Naoaki Sugano


Sejarah SingkatBrief History

PT Taisho Pharmaceutical Indonesia Tbk (“Perusahaan”) awalnya didirikan dengan nama PT Squibb Indo-nesia pada tahun 1970, dan memulai kegiatan komersialnya pada tahun 1972. Perusahaan bergerak di bidang farmasi yaitu pabrikan obat-obatan Over-the-Counter (“OTC”) dan Etikal, baik untuk pasar dalam negeri dan luar negeri.

Sesuai dengan pasal 3 dari Anggaran Dasar Perusahaan, ruang lingkup kegiatan Perusahaan adalah mengembangkan, mendaftarkan, memproses, memproduksi dan menjual produk kimia, farmasi dan kese-hatan.

Pada tahun 2009, kepemilikan Perusahaan diambil alih oleh Taisho Pharmaceutical Co., Ltd., sebuah perusahaan yang berpusat di Jepang .Kantor pusat kami berlokasi di Tamara Center Lt. 10, Jl. Jenderal Sudirman Kav. 24, Jakarta 12920. Pabrik Perusahaan berlokasi di Jl. Raya Jakarta - Bogor Km. 38, Cilangkap Tapos Depok 16458. PT Taisho Pharmaceutical Indonesia Tbk (the “Company”) was initially established as PT Squibb Indonesia in 1970 that commenced its commercial operations in 1972. The Company is involved in pharmaceutical industry, manufacturing Over-the-Counter (“OTC”) and Ethical products, both for domestic and export markets.

In accordance with article 3 of the Company's Articles of Association, the Company's activities are to develop, register, process, produce and sell chemical, pharmaceutical and health care products.

In 2009, the ownership of the Company acquired by Taisho Pharmaceutical Co., Ltd., a company incorpo-rated in Japan. Our head office is located at Tamara Center 10th floor, Jl. Jenderal Sudirman Kav. 24, Jakarta 12920. The Company's manufacturing plant is located at Jl. Raya Jakarta - Bogor Km. 38, Cilang-kap, Tapos Depok 16458.

Kronologis Pencatatan Saham PerseroanChronology of the Company’s Stock Listing

Pada tahun 1983, Perusahaan melakukan Penawaran Umum Perdana Saham sebanyak 972.000 lembar saham atau 30% dari 3.240.000 saham yang ditempatkan dan disetor penuh Perusahaan. Saham yang ditawarkan dalam Penawaran Umum Perdana tersebut dicatatkan di Bursa Efek Jakarta (BEJ) pada tang-gal 29 Maret 1983 dan Bursa Efek Surabaya (BES) pada tanggal 16 Juni 1989.

Pada tahun 2001, Perusahaan menerbitkan saham tambahan untuk saham biasa sehingga jumlah modal saham biasa menjadi 9.268.000 lembar saham. Seluruh saham Perusahaan atau sejumlah 10.240.000 lembar saham telah dicatat pada Bursa Efek Indo-nesia.In 1983, the Company conducted an Initial Public Offering (IPO) of 972,000 shares or 30% of its 3,240,000 issued and fully paid shares. The shares offered in the IPO were registered on the Jakarta Stock Exchange (JSE) on 29 March 1983 and Surabaya Stock Exchange (SSE) on 16 June 1989. In 2001, the Company conducted a right issue on common share so that the common share capital became 9,286,000 shares. All of the Company's shares totaling of 10,240,000 shares have been listed on the Indonesia Stock Exchange.


Kinerja Operasi PerusahaanThe Company’s Operating Performance

Perusahaan berhasil membukukan penjualan bersih sebesar Rp 567 miliar di tahun 2016, meningkat 10% dibanding tahun sebelumnya. Peningkatan ini terutama di dorong pertumbuhan produk OTC. Perusahaan juga melaporkan Laba sebelum pajak penghasilan sebesar Rp. 220 miliar, dan mempertahankan rasio profitabilitas sebelum pajak yang sehat terhadap penjualan sebesar 39%.

The Company booked net sales of IDR 567 billion in 2016 registering an increase of 10% compared to the previous year. The strengthening was mainly supported by the growth of OTC products.The company also reported the Profit before income tax of IDR 220 billion and maintained healthy profitability before tax ratio to sales of 39%.

PabrikTechnical Operation

Tahun 2016 kita menetapkan Slogan “Think Customer – Quality Always” dengan slogan ini kami menem-patkan kualitas dan supply produk kami untuk semua konsumen pada tataran utama dengan cara mening-katkan implementasi penerapan GMP - kualitas supaya dapat mendukung peningkatan kualitas, volume, stabilitas supply hasil Produksi dan mempersiapkan penambahan beberapa jenis produk baru.

“Divisi Technical Operations (Pabrik) meningkatkan perbaikan sistim “continous improvement” di tiap lini produksi untuk menghindari adanya product complaint.Dalam rangka lebih memenuhi persyaratan GMP/CPOB, di tahun 2016 kami juga melakukan pembena-han ruangan QC Laboratorium dan Quality Assurance serta mulai melakukan kajian untuk memper-baiki alur dan fasilitas produksi produk padat.

Dari segi EHS (Environmental Health and Safety) PT Taisho Pharmaceutical juga melakukan pembenahan dalam pengelolaan lingkungan dengan mengikuti program “PROPER” dari kementrian Lingkungan Hidup, hasil untuk tahun 2016 adalah masuk dalam kategori “Biru” yang mengindikasikan PT Taisho Pharmaceu-tical Indonesia 100% memenuhi kaidah dan aturan tentang linkungan hidup.

Disamping itu, PT TPI juga berhasil mempertahankan kinerja keselamatan kerja baik untuk karyawan dan kontraktor sehingga tetap dapat masuk dalam kategori perusahaan yang memperoleh penghargaan “Zero accident” dari pemerintahan kota Depok.

2016 we set the slogan "Think Customer - Quality Always". We put the quality and the product supply to all consumers at the primary level by enhancing implementation of Good Manufacturing Practice (GMP) – ‘quality’ in order to support the improvement of the quality, volume, product stability and prepare for the new product.

Technical Operations Division (Factory) improve "continuous improvement" in each production line to avoid of product complaint.In order to meet the requirements of GMP, we also do an enhancement in QC Laboratory and Quality Assurance and began conducting studies to improve the flow and the facilities of the solid product.

In terms of EHS (Environmental Health and Safety) we also to make improvements in environmental ma-nagement by following the "PROPER" program of the Ministry of Environment, the “Blue Category” result in 2016 is indicates PT Taisho Pharmaceutical Indonesia, 100% meet the requirement regulation of living environments.

Apart from these improvements, the Technical Operation Division of PT Taisho Pharmaceutical Indonesia has maintained a good record of work safety both for employees and contractor that we were one of the companies recognized to be given ‘Zero Accident’ Award by the Municipal Government of Depok.


PemasaranMarketing

Di tahun 2016, PT. Taisho Pharmaceutical Indonesia meluncurkan kampanye baru “ No Pain No Gain” untuk produk Counterpain yang ditujukan untuk generasi muda. Melalui 360 derajat kampanye di media televisi, media digital, social media dan kegiatan-kegiatan di lapangan yang tidak hanya membangun kesadaran atas produk Counterpain, tetapi juga memotivasi generasi muda untuk bekerja keras dan selalu meningkatkan diri untuk meraih mimpi, hal ini merupakan bagian penting dari social responsibility bagi produk yang memimpin pasar.

Tahun 2016 ini, Counterpain patch dan Counterpain patch Hot, merupakan tahun kedua peluncuran ke Indonesia,telah sukses mencapai penetrasi pasar yang lebih luas dan memperoleh dukungan luas dari pencinta Counteprain. Dengan memperluas pangsa pasar di pasar analgesik Patch, Counterpain patch dan Counterpain patch Hot diharapkan untuk terus memberikan kontribusi yang berkelanjutan terhadap pendapatan dan keuntungan dari segmen OTC dan perusahaan.

In 2016, PT Taisho Pharmaceutical Indonesia launched a brand new campaign of “No pain no gain” for Counterpain to young generation. Through a new 360 degree campaign covering television, digital media, social newsfeed, on-ground event, etc, not only has it raised the awareness of Counterpain, but also encouraged young people to work hard and excel themselves to challenge towards dreams, which is a very important social responsibility for a leading brand or a company to embrace.

Counterpain Patch and Counterpain Patch Hot, as the second year of launching to Indonesia, successfully achieved a broader market penetration and gained a wider support from Counterpain fans. With expanding market share in the analgesic patch market, Counterpain Patch and Counterpain Patch Hot are expected to continuously provide a sustainable contribution to the revenue and profit of OTC segment and the com-pany.


Posisi KeuanganFinancial Position

Pada tahun 2016, Perusahaan membukukan penjualan bersih Rp 567 miliar dan laba sebelum pajak Rp 220 miliar, tumbuh masing masing sebesar 10% dan 11% dibandingkan tahun 2015.Sedangkan Rasio Laba untuk margin laba kotor (56%) dan laba sebelum pajak (39%)

Pada 31 Desember 2016, jumlah aset Perusahaan tercatat sebesar Rp 479 miliar, dan total kewajiban Perusahaan sebesar Rp 124 miliar.

Pada 31 Desember 2016, modal kerja netto tercatat positif Rp 270 miliar ekuivalen dengan Rasio Lancar sebesar 3,37 yang menggambarkan likuiditas perusahaan yang sehat.

In 2016, The company booked net sales of IDR 567 billion net and profit before tax of IDR 220 billion , grew by 10% and 11% respectively compared to 2015. Meanwhile, the profitability ratios for Gross Profit Margin (56%) and Profit before Income Tax (39%).

As of 31 December 2016, the Company reported total asset of IDR 479 billion while the total liabilities reported were recorded at IDR 124 billion.

As of 31 December 2016, the net working capital was positive IDR 270 billion, equivalent to a Current Ratio of 3.37 reflecting healthy liquidity position of the Company.

Arus KasCash Flow

Arus kas bersih dari aktivitas operasi sebesar Rp 179 miliar, terutama dari peningkatan kas yang diperoleh dari aktivitas operasi.. Kas bersih yang digunakan aktivitas investasi sebesar Rp 8.8 miliar, dalam rangka perolehan aset tetap. Sementara kas bersih yang digunakan untuk aktivitas pendanaan sebesar Rp 163 miliar adalah untuk pembayaran dividen tunai.

Net cash flow provided by operating activities reached IDR 179 billion, mainly contributed by the increase in cash generated from main operations. Net cash used in investment activities amounting to IDR 8.8 billion, mainly for the acquisition of fixed assets. Net cash used in financing activities amounted to IDR 163 billion for payment of cash dividend.

Belanja ModalCapital Expenditures

Sebagai upaya untuk mendukung pertumbuhan usaha, Perusahaan melakukan belanja modal di tahun 2016 sebesar Rp 10,9 miliar, untuk mendukung penjualan yang positif. Belanja modal utama Perusahaan adalah untuk pembaharuan fasilitas produksi, dan belanja modal lainnya

The company made capital expenditures in 2016 amounting to IDR 10,9 billion to support positive sales growth. The Company's major capital expenditure was for upgrade of manufacturing and production facili-ties.


Rapat Umum Pemegang SahamGeneral Meeting of Shareholders

Pada tahun 2016, Perseroan menyelenggarakan RUPST pada tanggal 16 Juni 2016.

Rapat tersebut membicarakan agenda, sebagai berikut:RUPST:1. Persetujuan atas Laporan Tahunan Perseroan dan pengesahan atas Laporan Keuangan Perseroan serta Laporan Tugas Pengawasan Dewan Komisaris Perseroan untuk tahun buku yang berakhir pada tanggal 31 Desember 2015.2. Penetapan penggunaan laba Perseroan.3. Penunjukan Kantor Akuntan Publik untuk mengaudit buku Perseroan untuk tahun buku yang akan berakhir pada tanggal 31 Desember 2016.4. Pengangkatan para anggota Direksi dan Dewan Komisaris Perseroan serta penetapan jumlah gaji dan tunjangan mereka.5. Laporan Pengangkatan Anggota Komite Audit Perseroan.

Pada tahun 2016, Perseroan menyelenggarakan RUPSLB pada tanggal 20 Desember 2016.RUPSLB dilaksanakan dalam rangka memenuhi ketentuan Pasal 27 jo. Pasal 8 ayat (3) Peraturan Otori-tas Jasa Keuangan Nomor 33/POJK.04/2014 tentang Direksi dan Dewan Komisaris Emiten atau Perusa-haan Publik sehubungan dengan adanya pengunduran diri Sdr. Julizar Junaldy dari jabatannya selaku selaku Direktur.

In 2016, the company held its AGM on June 16, 2016.

Agenda discussed in the meeting was as follows:AGM:

Approval of the Company Annual Report and the endorsement of Company's Financial Statements as well as the report of the Supervisory Task of the Board of Commissioners of the company for the finan-cial year ended on 31 December 2015.Determination of the use of the profit of the Company.Appointment of Public Accountant to audit the books of the company for the financial year that ended on 31 December 2016.Appointment of the members of the Board of Directors and the Board of Commissioners of the company as well as the determination of their salary and benefits.Report on the appointment of members of the Company Audit Committee.

In 2016, the company held an EGM on 20 December 2016. The EGM is held to comply OJK regulation number 33/POJK.04/2014 - Art. 27 jo. Art 8 (3) regarding Directors and Board of Commissioner and Public company due to a resignation of Mr. Julizar Junaldy as a Director.

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Dewan KomisarisBoard of Commissioner

Dewan Komisaris Perseroan melakukan pengawasan atas pengurusan Perseroan oleh Direksi dalam menjalankan Perseroan sebagaimana yang ditetapkan dalam Anggaran Dasar Perseroan. Dewan Komisaris terdiri dari tiga anggota: satu orang Presiden Komisaris , satu Komisaris, dan satu Komisaris Independen, yang bertindak juga sebagai ketua Komite Audit.

Anggota Dewan Komisaris berdasarkan keputusan Rapat Umum Pemegang Saham yang tertuang pada Akta No. 16 tanggal 16 Juni 2016 adalah sebagai berikut:a. Presiden Komisaris: Masahiro Minob. Komisaris: Naoaki Suganoc. Komisaris Independen: Agus Soewandono

The Company Board of Commissioners is responsible for overseeing the management of the company by the Directors as set out in the Company Articles of Association.

The Board of Commissioners consists of three members: a President Commissioner, a Commissioner, and an Independent Commissioners, which also act as the Chairman of the Audit Committee.

Member of the Board of Commissioners is based on Annual General Meeting – Notarial Deed Number 16 dated 16 June 2016 are as follows:a. President Commissioner: Masahiro Minob. Commissioner: Naoaki Suganoc. Independent Commissioners: Agus Soewandono

Komite AuditAudit Committee

Komite Audit dibentuk pada sejak tahun 2009, sejalan dengan diterapkannya prinsip Tata Kelola Perse-roan dan sebagai persyaratan dalam Surat Keputusan Ketua Badan Pengawas Pasar Modal dan Lemba-ga Keuangan (Bapepam-LK) No. 29/PM/2004 tentang Pembentukan dan Pedoman Pelaksanaan Kerja Komite Audit.

Komite Audit memberikan input dan analisa pada laporan keuangan yang diberikan oleh Akuntan Publik.

Komite Audit, terdiri dari tiga anggota, yaitu:a. Ketua: Agus Soewandono b. Anggota:• Anang Yudiansyah• Sylvia Veronica Siregar

Audit Committee was established in 2009 to implement the principles of Good Corporate Governance (GCG) and regulatory requirements as stated in the Decision Letter of Head of Capital Market and Finan-cial Institutions Supervisory Board (Bapepam-LK) No. 29/PM/2004 concerning the Guidelines on estab-lishment and working implementation of Audit Committee.

The Audit Committee gives their input and analysis on Financial Report prepared by Public Accountant.

The Audit Committee consists of three members:a. Chairman: Agus Soewandonob. Members:• Anang Yudiansyah• Sylvia Veronica Siregar


Dewan DirekturBoard of Directors

Direksi Perseroan bertanggung jawab penuh atas pengurusan Perseroan untuk kepentingan dan tujuan Perseroan. Direksi berkewajiban untuk menjaga dan meningkatkan asset Perseroan. Direksi secara langsung menyampaikan laporannya kepada pemegang saham dalam RUPST.

Direksi Perseroan terdiri dari empat anggota, termasuk seorang Presiden Direktur. Susunan anggota Direksi berdasarkan keputusan Rapat Umum Pemegang Saham yang tertuang pada Akta No. 16 tanggal 16 Juni 2016 adalah sebagai berikut:a. Presiden Direktur: Jun Kurodab. Direktur: - Masashi Nakaura - Adeel A. Hassan - Julizar Junaldy Pada tahun 2016, Direksi mengadakan pertemuan secara reguler untuk membahas masalah penting teru-tama terkait dengan aktivitas yang bertujuan untuk pengembangan bisnis dan kondisi keuangan Perse-roan.

Efektif 20 Desember 2016, Bpk Julizar Junaldy mengundurkan diri dari posisinya Direktur perusahaan – pengunduran diri dikukuhkan dengan RUPSLB dan tertuang pada Akta No. 8 tertanggal 20 Desember 2016.

The Company's Board of Directors is fully responsible for the management of the company for the benefit of and in line with the objectives of the company. The Board of Directors is obligated to maintain and increase the asset of the company. The Board of Directors shall directly deliver their report to shareholders in the AGM.

The Company's Board of Directors consists of four members, including a President Director. The composi-tion of the Board of Directors based on Annual General Meeting – Notarial Deed Number 16 dated 16 June 2016 are as follows:a. President Director: Jun Kuroda b. Directors: - Masashi Nakaura - Adeel A. Hassan - Julizar Junaldy

In 2016, the Board of Directors met regularly to discuss important issues particularly related to activities aimed at the development of the business and financial condition of the company.

Effective 20 December 2016, Mr. Julizar Junaldy resigned from his position as a Director. The resignation was confirmed by the EGM – Notarial Deed No.8 dated 20 December 2016.

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Sekretaris PerusahaanCorporate Secretary

Sekretaris Perusahaan dibentuk sejak tahun 2009, sejalan dengan diterapkannya prinsip Tata Kelola Perseroan dan sebagai persyaratan dalam Surat Keputusan Ketua Badan Pengawas Pasar Modal dan Lembaga Keuangan (Bapepam-LK) No. 63 /PM/1996 tentang pengangkatan Sekretaris Perseroan.

Sekretaris Perseroan bertanggung jawab untuk menyediakan materi dan informasi yang relevan dengan kegiatan Perseroan sebagai entitas publik, serta memiliki pengetahuan yang memadai mengenai Pasar Modal dan peraturan Bapepam / OJK berkaitan dengan keterbukaan informasi.Selama tahun 2016, Sekretaris Perusahaan telah mengikuti acara sosialisasi dan diskusi yang diadakan oleh OJK dan BEI.

Sekretaris Perusahaan: Dyah Eka Budiastuti

Diangkat sejak tahun 2009, pendidikan terakhir Fakultas Ilmu Sosial dan Ilmu Politik - Universitas Indone-sia. Sebelum bergabung dengan perseroan, berkarir di Ernst & Young - KAP Hanadi Sarwoko Sandjaya.

Corporate Secretary was established in 2009 to implement the principles of Good Corporate Governance (GCG) and regulatory requirements stated in the Decision Letter of Head of Capital Market and Financial Institutions Supervisory Board (Bapepam-LK) No. 63/PM/1996 concerning the Appointment of Corporate Secretary.

The Corporate Secretary is responsible for providing materials and information relevant to the activities of the Company as a publicly-listed entity, and possesses adequate knowledge on Stock Market and Bapepam/OJK regulations relating to information disclosure.During 2016, Corporate Secretary has attended socializations and discussions conducted by OJK and IDX.

Corporate Secretary: Dyah Eka Budiastuti

Appointed since 2009, education: Faculty of Social and Political Science – University of Indonesia. Prior to joining Taisho, she worked in Ernst & Young - KAP Hanadi Sarwoko Sandjaya.


KustodianCustodyPT Kustodian Sentral Efek Indonesia(Indonesian Central Securities Depository)Indonesia Stock Exchange Building1st Tower 5th FloorJl. Jend. Sudirman Kav. 52-53Jakarta 12190

Biro Administrasi EfekShare Administration BureauPT. Bima RegistraGraha Mir, 6th Floor 2A Jl. Pemuda Raya No. 9 Jakarta 13220

Lembaga & Profesi Penunjang Pasar ModalCapital Market Supporting Institutions & Professions

Akuntan PublikPublic AccountantTanudiredja, Wibisana, Rintis & Rekan (PwC)Plaza 89, Jl. HR Rasuna Said Kav. X-7 No.6 Jakarta 12940

NotarisNotaryHaji Syarif Siangan Tanudjaja, S.H.Jl. Tegalan No.3 Jakarta 13140

Pengawasan InternalInternal Audit

Sesuai dengan Keputusan BKPM-LK KEP- 496/BL/2008 tanggal 28 November 2008 mengenai Pemben-tukan Divisi Audit Internal dan Pedoman Perumusan Piagam Audit, dan untuk memenuhi persyaratan dalam Keputusan ini, Dewan Direksi telah menetapkan Internal Audit Unit pada bulan Oktober 2011 .Divisi Internal Audit memberikan layanan konsultasi dan jaminan kemandirian yang objektif guna pening-katan efektivitas, disiplin dan integritas operasional Perseroan sehingga menunjang pencapaian tujuan Perseroan.

Guna menguatkan peran dan tanggung jawab dari Internal Audit, Piagam Internal Audit telah mendeskripsikan secara jelas yang berisi misi, struktur, tugas, tanggung jawab dan wewenang Internal Auditor, dan persetujuan Presiden Direktur dan Presiden Komisaris atas isi Piagam Audit Internal.

Struktur dan posisi:Unit Internal Audit dikepalai oleh Internal Auditor yang melapor langsung kepada Presiden Direktur.Internal Auditor ditunjuk dan diberhentikan oleh Presiden Direktur dengan persetujuan Dewan Komisaris.Presiden Direktur berhak untuk memberhentikan Internal Auditor jika ia gagal untuk memenuhi persyaratan sebagai Auditor Internal seperti diuraikan dalam Keputusan Ketua BAPEPAM-LK Ketua No. Kep-496/BL/2008 dan/atau gagal atau tidak kompeten dalam melaksanakan tugas.

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Tugas dan Tanggung Jawab:Berdasarkan Piagam Audit Internal, tanggung jawab Unit Audit Internal untuk memastikan bahwa seluruh elemen kontrol,yang terdiri dari lingkungan pengendalian, pertimbangan risiko, aktifitas pengendalian, informasi dan komunikasi serta kegiatan pengawasan telah memadai dan mengarah pada prosedur Tatakelola yang berlaku.

Auditor Internal : Ratih Indriani

In accordance with the Decree of the Capital Market Supervisory Agency and Institute of Finance (BA-PEPAM-LK) No. KEP-496/BL/2008 dated 28 November 2008 concerning the Establishment of the Internal Audit Division and the Guideline for the Formulation of Its Charter, and in order to fulfil this Decree, the Board of Directors has established an Internal Audit Division in October 2011. The Internal Audit Division provides independent, objective assurances and consulting service to improve the effectiveness, discipline and integrity of the Company’s operation and thereby help the Company to achieve its objective.

To strengthen the duties and responsibilities of the Internal Audit, the Internal Audit Charter explicitly describe the mission, structure, duties, responsibilities, authority of the Internal Audit and the President Director’s and President Commissioner’s approval of the content of the Internal Audit Charter.

Structure and Position : The Internal Audit Division is led by Internal Auditor who reports directly to the President Director. Internal Auditor is appointed and dismissed by the President Director with the approval of the Board of Commissioner.

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The President Director has the right to dismiss the Internal Auditor, should he/she fail to fulfil the requirements as Internal Auditor as outlined in BAPEPAM and LK Chairman Decree No. Kep-496/BL/2008 dated November 28, 2008 and/or fail or be incompetent in performing his/her duties.

Duties and Responsibilities:According to the Internal Audit Charter, the responsibilities of the Internal Audit are to ensure that all control elements, consisting of control environment, risk consideration, control activities, information and communication, as well as monitoring activities, are adequately in place and oriented toward accepted governance procedures.

Internal Auditor : Ratih Indriani

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TPI Whistleblowing ServiceSebagai anggota dari Taisho Pharmaceutical Co., Ltd. group, PT Taiso Pharmaceutical Indonesia Tbk. (“TPI”) mengadopsi Kode Etik Korporasi untuk diterapkan dalam menjalankan aktivitas Perusahaan sehari-hari. Sehubungan dengan hal tersebut, TPI membuka kesempatan luas kepada setiap karyawan dan para pemangku kepentingannya untuk turut mengawasi aktivitas perusahaan, yaitu dengan meluncur-kan TPI Whistleblowing Service yang dimulai pada tanggal 15 Maret 2017.

TPI Whistleblowing Service adalah sistem pelayanan pelaporan pelanggaran yang dikelola secara profe-sional dan independen yang dapat diakses oleh seluruh karyawan dan para pemangku kepentingan TPI untuk menyampaikan dugaan pelanggaran yang terjadi di TPI sesuai dengan ruang lingkup pelanggaran yang telah ditetapkan.

Lingkup dari Kebijakan dan Prosedur

Lingkup dugaan pelanggaran yang akan ditindaklanjuti oleh TPI Whistleblowing Service meliputi sebagai berikut:• Kecurangan • Korupsi• Pencurian • Pelanggaran Kebijakan dan Peraturan Perusahaan, termasuk Kode Etik • Benturan Kepentingan• Penyuapan/Gratifikasi• Aktivitas Ilegal

TPI berharap dengan adanya TPI Whistleblowing Service ini, pelanggaran dapat dicegah atau dideteksi secara lebih dini dan ditindaklanjuti dengan tegas sehingga dapat memberikan efek keengganan bagi calon pelanggar.

As a member of Taisho Pharmaceutical Co., Ltd. group, PT Taisho Pharmaceutical Indonesia Tbk. (“TPI”) adopted the Corporate Code of conduct and implement in doing the Company’s day to day activities. In relation to the above matter, TPI provides opportunities to its employees and stakeholders to participate in monitoring the Company’s activities by launching TPI Whistleblowing Service on March 15, 2017.

TPI Whistleblowing Service is a whistleblowing system managed professionally and independently which can be accessed by all employees and stakeholders of TPI to report allegation of misconduct on the princi-ples and guidelines for corporate behavior regulated in the applicable Code of Conducts.

Scope of the Policy and Procedure

Scope of allegations that will be followed up by TPI Whistleblowing Service includes the following:• Fraud • Corruption• Theft


• Breach of the company policy and regulation, including Code of Conducts• Conflict of interest• Bribery/Gratification• Illegal activities

TPI expects through this TPI Whistleblowing Service, violation can be prevented or detected early and followed up firmly so that it can provide a deterrence effect to prospective offenders.

Kode EtikCode of Conduct

Sebagai anggota dari Taisho Pharmaceutical Co., Ltd. group, PT Taisho Pharmaceutical Indonesia Tbk ("Perusahaan") mengadopsi Kode Etik untuk diterapkan dalam menjalankan Perusahaan. Perusahaan juga berupaya secara terbuka untuk mematuhi semua hukum, peraturan dan ketetapan yang dibuat oleh pemerintah Indonesia serta semua komitmen hukum internasional dimana Indonesia menjadi salah satu negara penandatangan. Isi dari Kode Etik dapat dilihat pada corporate website kami : http://www.taisho.co.jp/

Kode Etik ini berlaku untuk semua karyawan dan kontraktor pihak ketiga. Seluruh karyawan dan kontraktor pihak ketiga harus mengakui dalam bentuk tertulis, telah menerima, membaca dan telah memahami dan akan mematuhi Kode Etik ini.

As a member of Taisho Pharmaceutical Co., Ltd., PT Taisho Pharmaceutical Indonesia Tbk ("Company") adopted the Declaration of Corporate Conduct and Code of Conduct. The Company pledges publicly to also adhere to all applicable laws, regulations and statutes of the Government of Indonesia as well as all international legal commitments to which Indonesia is a signatory state. The content of our Code of Conduct is publicly available in our corporate web site: http://www.taisho.co.jp/

The Codes applies to all employees and any contracting third party of the Company. All employees and contracting third parties must acknowledge in writing, that they have received, read and understood and shall abide by this Code.

Gaji dan KompensasiSalary and Compensation

Seperti yang tertuang dalam Anggaran Dasar Perseroan, Dewan Komisaris, yang bertindak berdasarkan mandat dari pemegang saham, menyetujui jumlah kompensasi yang dibayarkan kepada Komisaris Inde-penden dan Dewan Direksi sebesar Rp 3.9 miliar.

As stated in the Company Articles of Association, the Board of Commissioners, acting under mandate from shareholders, approved the amount of compensation paid to Independent Commissioner and Board of Directors in the amount of IDR 3.9 billion.

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Di tahun 2016, Counterpain mendapat penghargaan : ‘Social Media Award” dari majalah ‘Marketing”Counterpain has been rewarded by majalah “Marketing’’ for Social Media Award 2016


Struktur OrganisasiOrganization Chart

Dewan Komisaris

Board of Commissioners

Masahiro Mino

Naoaki Sugano

Agus Soewandono

Presiden Direktur

President Director

Jun Kuroda

Direktur Operasional

Operational Director

Masashi Nakaura

Direktur Keuangan

Finance Director

Adeel A.Hassan

Audit Internal

Internal Audit

Ratih Indriani

Unit Usaha

Business Unit

Vacant

Pabrik

Technical Operations

Mohammad Sumarno

Sumber Daya ManusiaHuman Resources

Yetty Tampubolon

PengadaanPurchasingEvi Rahayu

KeuanganFinance

Edwin Isfandiari

Teknologi Informasi Information Technology

Lisnawati Josefina

Sekretaris PerusahaanCorporate Secretary

Dyah Eka B.


PT TAISHO PHARMACEUTICAL INDONESIA TBK

LAPORAN KEUANGAN / FINANCIAL STATEMENTS

31 DESEMBER 2016 DAN 201531 DECEMBER 2016 AND 2015





PT TAISHO PHARMACEUTICAL INDONESIA Tbk

Lampiran 1/1 Schedule

The accompanying notes form an integral part of thesefinancial statements

LAPORAN POSISI KEUANGAN31 DESEMBER 2016 DAN 2015

STATEMENTS OF FINANCIAL POSITION31 DECEMBER 2016 AND 2015

(Expressed in thousands of Rupiah,unless otherwise stated)

Catatan/2016 Notes 2015

ASET ASSETS

Aset lancar Current assetsCash and cash equivalents

Trade receivablesRelated parties

Third partiesOther receivablesRelated parties

Third partiesInventories

Prepaid expenses andadvances

Overpayments of corporateincome taxes

Total current assets

Aset tidak lancar Non-current assetsDeferred tax assets, net

Fixed assets, net ofaccumulated depreciation

of Rp 107,938,402(2015: Rp 95,349,836)Intangible assets, net of

accumulated amortisation ofRp 4,026,031

(2015: Rp 3,969,296)Other assets

Total non-current assets

JUMLAH ASET TOTAL ASSETS





LAPORAN POSISI KEUANGAN31 DESEMBER 2016 DAN 2015

STATEMENTS OF FINANCIAL POSITION31 DECEMBER 2016 AND 2015



LIABILITAS LIABILITIES

Liabilitas jangka pendek Current liabilitiesTrade payables

Related partiesThird partiesOther payables

Related partiesThird partiesTaxes payable

Corporate income taxOther taxes

AccrualsEmployee benefit obligations

Total current liabilities

Liabilitas jangka panjang Non-current liabilityEmployee benefit obligations

JUMLAH LIABILITAS TOTAL LIABILITIES

EKUITAS EQUITY

Share capitalPreferred share 14.5%

participating andnon-cumulative, authorised,

issued and fully paid up972,000 shares with par

value of Rp 1,000(full Rupiah) per share

Common share, authorised11,988,000 shares,

issued and fully paid up9,268,000 shares with par

value of Rp 1,000(full Rupiah) per share

Additional paid-in capitalRetained earnings

AppropriatedUnappropriated

JUMLAH EKUITAS TOTAL EQUITY

JUMLAH LIABILITAS TOTAL LIABILITIESDAN EKUITAS AND EQUITY



Lampiran 2 Schedule


LAPORAN LABA RUGI DANPENGHASILAN KOMPREHENSIF LAINUNTUK TAHUN-TAHUN YANG BERAKHIR31 DESEMBER 2016 DAN 2015

STATEMENTS OF PROFIT OR LOSS ANDOTHER COMPREHENSIVE INCOME

FOR THE YEARS ENDED31 DECEMBER 2016 AND 2015



Net sales

Cost of goods sold

Laba kotor Gross profit

Selling and distributionexpenses

General and administrativeexpenses

Finance incomeOther income, net

Laba sebelum pajak penghasilan Profit before income tax

Income tax expenses

Laba tahun berjalan Profit for the year

Pos yang tidak akan direklasifikasi Items that will not beke laba rugi reclassified to profit or loss

Remeasurements ofemployee benefit obligations

Related income taxexpense

Kerugian komprehensif lain, Other comprehensivesetelah pajak loss, net of tax

Jumlah penghasilan komprehensif Total comprehensive incometahun berjalan for the year

Laba per saham - Earnings per share -dasar dan dilusian basic and diluted(Rupiah penuh) (full Rupiah)


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Lampiran 4 Schedule


LAPORAN ARUS KASUNTUK TAHUN-TAHUN YANG BERAKHIR31 DESEMBER 2016 DAN 2015

STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED

31 DECEMBER 2016 AND 2015(Expressed in thousands of Rupiah, unless otherwise

stated)


Cash flows from operatingArus kas dari aktivitas operasi activities

Receipts from customersPayments to suppliers

Payments to employees

Cash generated from operations

Corporate income taxes paidFinance income received

Tax refund received

Arus kas bersih diperoleh dari Net cash flows provided fromaktivitas operasi operating activities

Cash flows from investingArus kas dari aktivitas investasi activities

Acquisitions of fixed assetsProceeds from sale of

fixed assets

Arus kas bersih yang digunakan Net cash flows used inuntuk aktivitas investasi investing activities

Arus kas bersih yang digunakan Net cash flows used inuntuk aktivitas pendanaan financing activities

Payments of dividends

Kenaikan/(penurunan) bersih Net increase/(decrease) inkas dan setara kas cash and cash equivalents

Kas dan setara kas pada Cash and cash equivalentsawal tahun at the beginning of the year

Effect of exchangerate change on cash

and cash equivalents

Kas dan setara kas pada Cash and cash equivalentsakhir tahun at the end of the year




CATATAN ATAS LAPORAN KEUANGAN31 DESEMBER 2016 AND 2015

NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2016 AND 2015

(Expressed in thousands of Rupiah, unless otherwise stated)

1. INFORMASI UMUM 1. GENERAL INFORMATION

a. Pendirian dan informasi umum lainnya a. The establishment and other information

PT Taisho Pharmaceutical Indonesia Tbk (the"Company") was established as PT SquibbIndonesia under the framework of the ForeignCapital Investment Law No. 1/1967 based onNotarial Deed No. 24 by Abdul Latief, S.H.dated 8 July 1970. The Deed of Establishmentwas approved by the Minister of Justice of theRepublic of Indonesia in his Decision Letter No.J.A. 5/27/12 dated 20 February 1971 and waspublished in the State Gazette No. 23 dated19 March 1971.

The Company's Articles of Association havebeen amended by Notarial Deed No. 7 dated28 October 2009 of Haji Syarif SianganTanudjaja, S.H., notary in Jakarta, concerningthe change of the Company’s name toPT Taisho Pharmaceutical Indonesia Tbk. TheNotarial Deed was approved by the Minister ofLaws and Human Rights of the Republic ofIndonesia in his Decision Letter No. AHU-58130.AH.01.02 Year 2009 dated30 November 2009.

The Company commenced its commercialoperations in 1972. The head office is locatedat Wisma Tamara 10th floor, JI. JenderalSudirman Kav. 24, Jakarta 12920. TheCompany's manufacturing plant is located atJI. Raya Bogor Km. 38, Cilangkap Depok -16958.

In accordance with Article 3 of the Company'sArticles of Association, the Company's activitiesare to develop, register, process, produce andsell chemical, pharmaceutical and health careproducts. The Company had a total of 144permanent employees as at 31 December 2016and 147 permanent employees as at31 December 2015.

The composition of the Company's Boards ofCommissioners, Directors and Audit Committeeat 31 December 2016 and 2015 is as follows:

2016 2015

: Commissioners

: President Director: Directors

: Head of Audit Committee: Members

*) Resigned on 31 October 2016







1. INFORMASI UMUM 1. GENERAL INFORMATION (continued)

b. Penawaran umum saham Perusahaan b. The Company’s public offering

In 1983, the Company conducted an InitialPublic Offering (“IPO”) of 972,000 shares or30% of its 3,240,000 issued and fully paidshares. The shares offered in the IPO wereregistered on the Jakarta Stock Exchange(“JSE”) on 29 March 1983 and Surabaya StockExchange (“SSE”) on 16 June 1989.

In 2001, the Company conducted a right issueon common shares so that the common sharecapital became 9,268,000 shares.

As at 31 December 2016 and 2015, all of theCompany's shares totaling of 10,240,000shares have been listed on the IndonesiaStock Exchange.

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGPENTING

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES

a. Dasar penyusunan laporan keuangan a. Basis of preparation of the financialstatements

The Company’s financial statements wereauthorised for issue by the Directors on29 March 2017.

Presented below is the summary of thesignificant accounting policies adopted for thepreparation of the financial statements of theCompany, which conform to the IndonesianFinancial Accounting Standards and theregulations imposed by the Financial ServicesAuthority (“OJK”) (formerly the IndonesianCapital Market and Financial InstitutionSupervisory Agency) No. VIII.G.7 regardingGuideline for Financial StatementsPresentation and the Chairman of BAPEPAM-LK Decree No. KEP-347/BL/2012 regardingPresentation and Disclosures of Issuers orPublic Companies - an amendment to Rule No.VIII.G.7.

The financial statements have been preparedunder the historical cost convention, asmodified by amortised cost, and using theaccrual basis except for the statements of cashflows.








2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

a. Dasar penyusunan laporan keuangan a. Basis of preparation of the financialstatements (continued)

The statements of cash flows are preparedusing the direct method by classifying cashflows on the basis of operating, investing andfinancing activities.

Significant accounting estimates applied in thepreparation of these financial statements aredisclosed in Note 24.

Figures in the financial statements are roundedto and expressed in thousands of Rupiah(“Rp”), unless otherwise stated.

Perubahan pada pernyataan standarakuntansi keuangan (“PSAK”) daninterpretasi standar akuntansi keuangan(“ISAK”)

Changes to the statements of financialaccounting standards (“SFAS”) andinterpretations of statements of financialaccounting standards (“ISFAS”)

On 1 January 2016, the Company adopted newand amended SFAS and ISFAS which areeffective for application from that date. Inaddition, on 1 January 2016, the Company alsoapplied annual improvements to SFAS in 2015which effective on 1 January 2016.

The adoption of these new and amendedstandards, interpretations and annualimprovements which are relevant to theCompany’s operation, but did not result insubstantial changes to the Company’saccounting policies and had no material effecton the amounts reported for the current or priorfinancial years are as follows:

- Annual improvement to PSAK 5,“Operating segments”

- Amendment to SFAS 16, ”Fixed asset”- Amendment to SFAS 19, ”Intangible asset”- Amendment to SFAS 24, ”Employee

benefit”









a. Dasar penyusunan laporan keuangan a. Basis of preparation of the financialstatements (continued)

Perubahan pada pernyataan standarakuntansi keuangan (“PSAK”) daninterpretasi standar akuntansi keuangan(“ISAK”)

Changes to the statements of financialaccounting standards (“SFAS”) andinterpretations of statements of financialaccounting standards (“ISFAS”) (continued)

New standards, amendments, annualimprovements and interpretations issued andrelevant to the Company’s operation, but notyet effective for the financial year beginning 1January 2016 are as follows:

Effective 1 January 2017:- Amendment to SFAS 1, “Presentation of

financial statements”- Annual improvement to SFAS 3, “Interim

financial reporting”- Annual improvement to SFAS 24,

“Employee benefits”- Annual improvement to SFAS 60,

“Financial instrument: disclosures”

Effective 1 January 2018:- Amendment to SFAS 16, “Fixed assets”- Amendment to SFAS 2, “Cash flows

statement – disclosure initiative”- Amendment to SFAS 46, “Taxations –

recognition of deferred tax assets forunrealized losses”

Early adoption of the above standards ispermitted.

As at the authorisation date of these financialstatements, the Company is still evaluating thepotential impact of the implementation of thesenew and amendment accounting standards toits financial statements.

b. Penjabaran mata uang asing b. Foreign currency translation

(i) Mata uang fungsional dan penyajian (i) Functional and presentation currency

Items included in the financial statementsof the Company are measured using thecurrency of the primary economicenvironment in which the entity operates(the “functional currency”).

The financial statements are presented inRupiah, which is the functional andpresentation currency of the Company.









b. Penjabaran mata uang asing b. Foreign currency translation (continued)

(ii) Transaksi dan saldo (ii) Transactions and balances

Foreign currency transactions aretranslated into Rupiah using the exchangerates prevailing at the dates of thetransactions. Foreign exchange gains andlosses resulting from the settlements ofsuch transactions and from the translationof monetary assets and liabilitiesdenominated in foreign currencies usingyear-end exchange rates, are recognisedin the statements of profit or loss.

The main exchange rates used as at 31December 2016 and 2015, based on theexchange rates of the bank with which theCompany transacts the most of its foreignexchange transactions, are as follows (fullRupiah):

2016 2015

United States Dollars (“USD”) 1Japanese Yen (“JPY”) 1

c. Kas dan setara kas c. Cash and cash equivalents

Cash and cash equivalents include cash onhand, deposits held on call with banks andother short-term highly liquid investments withoriginal maturities of three months or less.

d. Instrumen keuangan d. Financial instruments

(i) Aset keuangan (i) Financial assets

The Company classifies its financial assetsas loans and receivables. The Companydoes not have financial assets at fair valuethrough profit or loss and available-for-salefinancial assets.

Loans and receivables are non-derivativefinancial assets with fixed or determinablepayments that are not quoted in an activemarket.









d. Instrumen keuangan d. Financial instruments (continued)

(i) Aset keuangan (i) Financial assets (continued)

They are included in current assets, exceptfor maturities greater than 12 months afterthe reporting date, and then they areclassified as non-current assets. TheCompany’s loans and receivables comprise“trade receivables” (Note 4), “otherreceivables” and “cash and cashequivalents” (Note 3). The managementdetermines the classification of its financialassets at initial recognition.

Loans, receivables and financial asset heldto maturity are carried at amortised costusing the effective interest method.Financial assets are derecognised whenthe rights to receive cash flows from theassets have expired and the Company hastransferred substantially all risks andrewards of ownership.

(ii) Liabilitas keuangan (ii) Financial liabilities

The Company classifies its financialliabilities into two categories: financialliabilities at fair value through profit or lossand financial liabilities measured atamortised cost.

As at 31 December 2016 and 2015, theCompany only had financial liabilitiesmeasured at amortised cost, whichconsisted of trade payables, other payablesand accruals. After initial recognition whichis at fair value plus transaction costs, theCompany measures all financial liabilities atamortised cost using the effective interestrate method, except where the effect ofdiscounting would be immaterial. Financialliabilities are derecognised whenextinguished.









e. Piutang usaha dan piutang lain-lain e. Trade and other receivables

Trade and other receivables are recognisedinitially at fair value and subsequentlymeasured at amortised cost using the effectiveinterest method, less provision for impairment.A provision for impairment of trade and otherreceivables is established when there isobjective evidence that the outstandingamounts of the Company’s receivables will notbe collected.

f. Instrumen keuangan disalinghapus f. Offsetting financial instruments

Financial assets and liabilities are offset and thenet amount is reported in the statements offinancial position when there is a legallyenforceable right to offset the recognisedamounts and there is an intention to settle on anet basis, or realise the asset and settle theliability simultaneously. The legally enforceableright must not be contingent on future eventsand must be enforceable in the normal courseof business and in the event of default,insolvency or bankruptcy of the company or thecounterparty.

g. Persediaan g. Inventories

First-In, First-Out (FIFO)

overhead

Inventories are stated at the lower of cost or netrealisable value. Cost is determined by theFirst-In, First-Out (FIFO) method. The costs offinished goods and work in progress compriseraw materials, labour and an appropriateproportion of directly attributable fixed andvariable overheads.

Net realisable value is the estimated sellingprice in the ordinary course of business, less anestimation of the cost of completion and sellingexpenses.

Provision for impairment of inventories isdetermined on the basis of estimated futureusage or sale of inventory items.









h. Aset tetap dan penyusutan h. Fixed assets and depreciation

Fixed assets are stated at cost lessaccumulated depreciation.

Initial legal costs incurred to obtain legal rightsare recognised as part of the acquisition cost ofthe land and these costs are not depreciated.Costs related to renewal land rights arerecognised as intangible assets and amortisedduring the period of the land rights.

Land is not depreciated.

Depreciation on other assets is calculated usingthe straight-line method to allocate their costs totheir residual values over their estimated usefullives, as follows:

Tahun/Years

Buildings and land improvementsLeasehold improvement

Machinery, plant and equipmentFurniture and fixtures

Transportation equipment

Subsequent costs are included in the asset’scarrying amount or recognised as a separateasset, as appropriate, only when it is probablethat future economic benefits associated withthe item will flow to the Company and the costof the item can be measured reliably. Thecarrying amount of the replaced part isderecognised. All other repairs andmaintenance are charged to the statements ofprofit or loss during the financial period in whichthey are incurred.

The assets’ residual values and useful lives arereviewed, and adjusted if appropriate, at eachreporting date.

Gains and losses on disposals of assets aredetermined by comparing the proceeds with thecarrying amounts and are recognised in thestatements of profit or loss.

The accumulated costs of the construction ofbuildings, plants and the installation ofmachinery are capitalised as “construction inprogress”. These costs are reclassified to therespective assets category when theconstruction or installation is complete.Depreciation is charged from the date whenassets are ready for use.









i. Aset takberwujud i. Intangible assets

Intangible assets, which are computer softwareand its licenses, are stated at cost lessaccumulated amortisation. Amortisation iscalculated using the straight-line method toallocate the costs of intangible assets over theirestimated useful lives (five years).

j. Penurunan nilai aset non-keuangan j. Impairment of non-financial assets

Assets are reviewed for impairment wheneverevents or changes in circumstances indicatethat their carrying amounts may not berecoverable. An impairment loss is recognisedfor the amount by which the asset’s carryingamount exceeds its recoverable amount. Therecoverable amount is the higher of an asset’sfair value less costs to sell and its value in use.For the purpose of assessing impairment,assets are grouped at the lowest level for whichthere is separately identifiable cash flows (cash-generating units).

k. Utang usaha dan utang lain-lain k. Trade and other payables

Trade payables and other payables areobligations to pay for goods or services thathave been acquired from suppliers in theordinary course of business. Trade payablesand other payables are classified as currentliabilities if payment is due within one year orless. If not, they are presented as non-currentliabilities.

Trade and other payables are recognisedinitially at fair value and subsequentlymeasured at amortised cost using the effectiveinterest method, except where the effect ofdiscounting would be immaterial.

l. Imbalan kerja l. Employee benefits

Imbalan kerja jangka pendek Short-term employee benefits

Short-term employee benefits are recognisedwhen they are accrued to the employees.

Imbalan pensiun dan imbalan pasca-kerjalainnya

Pension benefits and other post-employment benefits

The Company is required to provide minimumpension benefits as stipulated in LawNo. 13/2003, which represents an underlyingdefined benefit obligation.









l. Imbalan kerja l. Employee benefits (continued)

Imbalan pensiun dan imbalan pasca-kerjalainnya

Pension benefits and other post-employment benefits (continued)

A defined benefit plan is a pension plan thatdefines an amount of pension benefit that anemployee will receive on retirement, usuallydependent on one or more factors such as age,years of service and compensation.

projected-unit-credit

The liabilities recognised in the statement offinancial position in respect of defined benefitpension plans is the present value of thedefined benefit obligation at the statement offinancial position date. The defined benefitobligation is calculated annually by anindependent actuary using the projected-unit-credit method. The present value of the definedbenefit obligation is determined by discountingthe estimated future cash outflows using theyield at the statement of financial position dateof long-term government bonds denominated inRupiah in which the benefits will be paid andthat have terms to maturity similar to the relatedpension obligation.

Remeasurements arising from experienceadjustments and changes in actuarialassumptions are directly recognised in othercomprehensive income. Accumulatedremeasurements reported in retained earnings.

Past service costs arising from amandement orcurtailment programs are recognised asexpense in profit or loss when incurred.

The Company also provides other post-employment benefits, service pay andseparation pay. The service-pay benefit vestswhen the employees reach their retirement age.The separation pay benefit is paid to employeesin the case of voluntary resignation, subject to aminimum number of years of service. Thesebenefits have been accounted for using thesame method as for the defined benefit pensionplan.









l. Imbalan kerja l. Employee benefits (continued)

Imbalan jangka panjang lainnya Other long-term benefits


Other long-term employee benefits such aslong service awards are calculated inaccordance with the Company’s regulationsusing the projected-unit-credit method anddiscounted to present value. These benefits areaccounted for using the same methodology asfor the defined benefit pension plan, except forremeasurements which are recognised in profitor loss.

m. Provisi m. Provisions

Provisions are recognised when the Companyhas a present obligation (legal or constructive)as a result of past events, it is probable that anoutflow of resources embodying economicbenefits will be required to settle the obligation,and a reliable estimate can be made of theamount of the obligation. Provisions are notrecognised for future operating losses.

n. Saham n. Share capital

Preferred and ordinary shares are classified asequity.

Incremental costs directly attributable to theissue of new shares or options are shown inequity as a deduction, net of tax, from theproceeds.

o. Pengakuan pendapatan dan beban o. Revenue and expense recognition

Revenue comprises the fair value of theconsideration received or receivable for thesale of goods in the ordinary course of theCompany’s business. Revenue is shown net ofvalue-added tax, returns, rebates anddiscounts.

Sales are recognised when the significant risksand rewards of ownership of the goods havebeen transferred to customers, can be reliablymeasured and it is probable that futureeconomic benefits will flow to the Company.

Expenses are recognised as incurred on anaccruals basis.









p. Perpajakan p. Taxation

The income tax expense comprises current anddeferred income tax. Tax is recognised in thestatements of profit or loss, except to the extentthat it relates to items recognised in othercomprehensive income or directly in equity. Insuch a case, tax is recognised in othercomprehensive income or directly in equity,respectively.

The current income tax charge is calculated onthe basis of the tax laws enacted at reportingdate. Management periodically evaluatespositions taken in tax returns with respect tosituations in which applicable tax regulation issubject to interpretation. It establishesprovisions where appropriate on the basis ofamounts expected to be paid to the taxauthorities.

Deferred tax is determined using tax rates thathave been enacted at the reporting date andare expected to apply when the relateddeferred tax asset is realised or the deferredtax liability is settled.

Deferred tax assets are recognised to theextent that it is probable that future taxableincome will be available against which thedeductible temporary differences can beutilised.

Deferred income tax assets and liabilities areoffset when there is a legally enforceable rightto offset current tax assets against current taxliabilities and when the deferred income taxesassets and liabilities relate to income tax leviedby the same taxation authority and there is anintention to settle the balances on a net basis.

q. Laba per saham q. Earnings per share

Earnings per share is calculated by dividingprofit for the year less preferred dividends bythe weighted average number of ordinaryshares outstanding during the year.









q. Laba per saham q. Earnings per share (continued)

As at 31 December 2016 and 31 December2015, there were no existing instruments whichcould result in the issue of further ordinaryshares. Therefore, diluted earnings per shareare equivalent to basic earnings per share.

r. Dividen r. Dividends

Final dividend distributions are recognised as aliability when the dividends are approved in theCompany’s General Meeting of Shareholders.

s. Transaksi dengan pihak-pihak berelasi s. Transaction with related parties

The Company engages in transactions withrelated parties as defined in SFAS 7 (Revised2010), “Related Party Disclosures”.

All significant transactions and balances withrelated parties are disclosed in the Note 21 tothe financial statements.

t. Informasi segmen t. Segment information

Segment information is presented based uponidentifiable operating segments. An operatingsegment is a distinguishable component thatengages in business activities from which itmay earn revenues and incur expenses, whoseoperating results were regularly reviewed by theentity’s chief operating decision maker to makedecisions about resources to be allocated to thesegment and assess its performance, and forwhich discrete financial information is available.







3. KAS DAN SETARA KAS 3. CASH AND CASH EQUIVALENTS

2016 2015

Cash in banksRupiah

Citibank, N.A.PT Bank SumitomoMitsui Indonesia

The Hongkong and ShanghaiBanking Corporation Limited

US DollarCitibank, N.A.

PT Bank SumitomoMitsui Indonesia

The Hongkong and ShanghaiBanking Corporation Limited

Time depositRupiah

PT Bank SumitomoMitsui Indonesia

The interest rate for time deposit is 6.30% - 8.70%per annum (2015: 8.00% - 9.25% per annum).

All balance of cash and cash equivalents abovewere placed in banks which were the Company’sthird parties.

Refer to Note 27 for details of balances in foreigncurrencies.

4. PIUTANG USAHA 4. TRADE RECEIVABLES

a. Berdasarkan pelanggan dan mata uang a. By debtors and currencies

2016 2015

Related parties (USD)Third party (Rupiah)

b. Berdasarkan umur b. By age

2016 2015

Not yet due







4. PIUTANG USAHA 4. TRADE RECEIVABLES (continued)

b. Berdasarkan umur b. By age (continued)

The Company did not provide for theimpairment of receivables in 2016 and 2015since management believes that all tradereceivables are collectible based on historicalexperience.

Refer to Note 21 for details of related partybalances and transactions.

Refer to Note 27 for details of balances inforeign currencies.

5. PERSEDIAAN 5. INVENTORIES

2016 2015

Finished goodsRaw and packaging materials

Work in progressInventories in transit

Provision for impairmentof inventories

The movements in the Company’s provision forimpairment of inventories are as follows:

2016 2015

Beginning balanceAddition

Written-off

Ending balance

Management believes that the recorded provisionfor impairment of inventories is adequate to coverlosses due to the decline in value of inventories.

As at 31 December 2016, inventories were insuredwith PT Asuransi Tokio Marine Indonesia againstlosses from fire and other risks with total coverageof Rp 48,641,248 (2015: Rp 41,377,372).Management believes that the insurance coverageis adequate to cover possible losses on the insuredinventories.







6. PERPAJAKAN 6. TAXATION

a. Pajak penghasilan badan lebih bayar a. Overpayments of corporate income taxes

2016 2015

Corporate income tax:2015201420132012

b. Utang pajak b. Taxes payable

2016 2015

Corporate income tax:Article 25Article 29

Other taxes:Article 21Article 22Article 23Article 26

Value added tax

c. Beban pajak penghasilan c. Income tax expenses

2016 2015

Current taxDeferred tax

A reconciliation between the income taxexpenses and the amounts computed byapplying the applicable tax rates to profit beforeincome tax is as follows:

2016 2015

Profit before income tax

Tax expense at applicabletax rates

Income subject to final taxBenefits in kind and

non-deductible expenses

Income tax expenses







6. PERPAJAKAN 6. TAXATION (continued)

c. Beban pajak penghasilan c. Income tax expenses (continued)

A reconciliation between the profit beforeincome tax per statements of profit or loss andtaxable income is as follows:

2016 2015

Profit before income tax

Temporary differences:Difference between accounting

and tax depreciationProvision for sales returns

and accrual for discountsProvision for impairment

of inventoriesProvision for employee benefits

Accrual for sales incentiveand vacation leave

Bonus

Permanent differences:

Non-deductible expenses

Interest income subject to final tax

Taxable income

Current incometax expense

Less prepaid income taxes:Article 22Article 23Article 25

Under/(over) payment ofcorporate income tax








d. Aset pajak tangguhan, bersih d. Deferred tax assets, net

Dikreditkan/ Dikreditkan/(dibebankan) ke penghasilan

ke laporan komprehensiflaba rugi/ lain/Credited/ Credited(charged) to otherto profit comprehensive

2015 or loss income 2016

Difference betweenbook and taxdepreciation

Provision for salesreturn and accrual

for discountsProvision for impairment

of inventoriesProvision for

employee benefitsAccrual for sales incentive

and vacation leaveBonus

Dikreditkan/ Dikreditkan/(dibebankan) ke penghasilan

ke laporan komprehensiflaba rugi/ lain/Credited/ Credited(charged) to otherto profit comprehensive

2014 or loss income 2015

Difference betweenbook and taxdepreciation

Provision for salesreturn and accrual

for discountsProvision for impairment

of inventoriesProvision for

employee benefitsAccrual for sales incentive

and vacation leaveBonus

e. Surat ketetapan pajak penting e. Significant tax assessment letters

Tahun pajak 2015 2015 fiscal year

In October 2016, the Company received thenotification for the corporate income tax auditfor 2015 fiscal year. As at the date of thefinancial statements, the tax audit is still inprocess by the Tax Office.








e. Surat ketetapan pajak penting e. Significant tax assessment letters(continued)


In April 2016, the Company received a tax auditresult for the overpayment of Rp 1,650,970 forcorporate income tax, instead of Rp 2,823,498which was previously recorded by theCompany. The Company received the taxrefund of Rp 1,650,970 in June 2016. In July2016, the Company submitted the objection forthe amount of Rp 1,172,528. As at the date ofthese financial statements, the Company hasnot yet received the objection result.


In April 2015, the Company received a tax auditresult for the overpayment ofRp 1,652,984 for corporate income tax, insteadof Rp 1,692,359 which was previously recordedby the Company. The remaining amount ofRp 39,375 was charged to the 2015 statementof profit or loss. The Company received the taxrefund of Rp 1,545,987 in July 2015. As at thedate of these financial statements, theCompany has not yet received the remainingamount of Rp 106,997.


In June 2014, the Company received a tax auditresult confirming the overpayment ofRp 1,296,472 for corporate income tax, insteadof Rp 2,219,582 which was previously recordedby the Company. The Company received thetax refund of Rp 1,296,472 in August 2014.In September 2014, the Company submitted theobjection for the amount of Rp 400,160.The remaining amount was charged to the 2014statement of profit or loss.

In September 2015, the Directorate General ofTax rejected the objection letter. In December2015, the Company filed a tax appeal letter ofRp 400,160. As at the date of these financialstatements, the Company has not yet receivedthe appeal result.

f. Administrasi f. Administration

Under the taxation laws of Indonesia, theCompany submits tax returns on the basis ofself-assessment. Under the prevailingregulations, Director General of Tax mayassess or amend taxes within five years of thetime the tax becomes due.







7. ASET TETAP 7. FIXED ASSETS

2016 __________Saldo Reklasi- Saldoawal/ Penam- Pengurang- fikasi/ akhir/

Beginning bahan/ an/ Reclassi- Endingbalance Addition Deduction fication balance

Biaya perolehan: Cost:Buildings and land improvements

Leasehold improvementsMachinery, plant and equipment

Furniture and fixturesTransportation equipmentConstruction in progress

Akumulasi penyusutan: Accumulated depreciation:Buildings and land improvements


Furniture and fixturesTransportation equipment

Nilai buku bersih Net book value

2015 __________Saldo Reklasi- Saldoawal/ Penam- Pengurang- fikasi/ akhir/

Beginning bahan/ an/ Reclassi- Endingbalance Addition Deduction fication balance

Biaya perolehan: Cost:Buildings and land improvements


Furniture and fixturesTransportation equipmentConstruction in progress

Akumulasi penyusutan: Accumulated depreciation:Buildings and land improvements


Furniture and fixturesTransportation equipment

Nilai buku bersih Net book value

The details of the sale of fixed assets are as follows:

2016 2015

Proceeds from sale of fixed assetsNet carrying amount

Gain/(loss) on sale of fixed assets







7. ASET TETAP 7. FIXED ASSETS (continued)

Depreciation expenses were allocated as follows:

2016 2015

Manufacturing costs (Note 17)Selling and distribution

expenses (Note 18)General and administrative

expenses (Note 18)

The Company has two parcels of land with LandUse Rights for 30 years until 21 January 2030, andthese can be extended.

On 31 December 2016, fixed assets were insuredwith PT Asuransi Tokio Marine Indonesia againstlosses from fire and other risks with total coverageof Rp 212,799,455 (2015: Rp 198,717,172).Management believes that the insurance coverageis adequate to cover possible losses on the insuredassets.

As at 31 December 2016, the fair value of the landand building based on the latest available propertytax assessment (NJOP) is Rp 67,001,564 (2015: Rp67,001,564). The Company analyses non-financialinstruments carried at fair value, by level 2 ofvaluation method. There is no significant differencebetween the fair value and carrying amount of fixedassets other than land and building.

All reported assets are directly owned by theCompany. As at 31 December 2016 and 2015, therewere no idle assets. Whilst, the acquisition cost offully depreciated assets and still in use wasamounted to Rp 31,597,742 (2015: Rp 29,365,392).

Management believes there was no impairment ofthe fixed assets.

8. ASET TAKBERWUJUD 8. INTANGIBLE ASSETS

Mainly represent software packages for severalmachineries.

Management believes there was no impairment ofthe intangible asset.







9. UTANG USAHA 9. TRADE PAYABLES

2016 2015

Third partiesRelated parties

Trade payables arise from the purchases of goodsand services used in the regular course of businessof the Company

There is no guarantee given on trade payables.

Refer to Note 21 for details of related party balancesand transactions.


10. UTANG LAIN-LAIN 10. OTHER PAYABLES

2016 2015

Related partiesRoyalty

Third partiesDividend

Purchase of fixed assetsAdvertising and promotion

Deferred incomeOthers

Refer to Note 21 for details of related partybalances and transactions.


11. AKRUAL 11. ACCRUALS

2016 2015

Sales returns and discountsAdvertising and promotion

Professional feesPurchase of fixed assets

Others







12. KEWAJIBAN IMBALAN KERJA 12. EMPLOYEE BENEFIT OBLIGATIONS

The employee benefits were calculated by anindependent actuary, PT Watson Wyatt Purbajaga.The actuarial valuation was made using the followingkey assumptions:

2016 2015

Discount rateFuture salary increases

2016 2015

Employee benefit obligations instatement of financial position

consists of:Pension benefits -

Other long-term benefits -

Short-term employee benefits -

Less:Current portion

Non-current portion

Charged to statements of profit or loss and othercomprehensive income:

2016 2015

Pension benefitsOther long-term benefits

The weighted average duration of the definedbenefit pension obligation and other long-termbenefits as at 31 December 2016 is 6.20 years and6.11 years, respectively.

The sensitivity of the defined benefit pensionobligation to changes in the principal actuarialassumptions as at 31 December 2016 are asfollows:

Dampak pada kewajiban imbalan pasti/Impact on defined benefit obligation

Perubahan Kenaikan Penurunanasumsi/ asumsi/ asumsi/Change Increase in Decrease in

in assumption assumption assumption

Discount rate

Future salary increases







12. KEWAJIBAN IMBALAN KERJA 12. EMPLOYEE BENEFIT OBLIGATIONS (continued)


The sensitivity analysis is based on a change in anassumption while holding all other assumptionsconstant. In practice, this is unlikely to occur, andchanges in some of the assumptions may becorrelated. When calculating the sensitivity of thedefined benefit pension obligation to significantactuarial assumptions, the same method (presentvalue of the defined benefit pension obligationcalculated with the projected unit credit method atthe end of the reporting period) has been applied aswhen calculating the pension liability recognisedwithin the statement of financial position.

Through its defined benefit pension plans, theCompany is exposed to a number of risks, which aredetailed below:

i. Interest rate risk. The defined benefit obligationcalculated under SFAS 24 uses a discount rateon bond yields. If bond yields fall, the definedbenefit will tend to increase.

ii. Salary inflation risk. Higher actual increase thanexpected increase in salary will increase thedefined benefit obligation.

a. Imbalan pensiun a. Pension benefits

The Company provides pension benefits for itsqualifying employees in accordance with LaborLaw No. 13/2003.

The details of total expenses recognised in thestatements of profit or loss were as follows:

2016 2015

Current service costInterest cost

Amortisation of past service costAmortisation of

actuarial gainsOthers

The expenses were allocated to cost of goodssold and operating expenses.








a. Imbalan pensiun a. Pension benefits (continued)

The details of total expenses recognised in thestatements of other comprehensive incomewere as follows:

2016 2015

Remeasurements:

Loss from change infinancial assumptions

Experience losses -

The employee benefit liabilities recognised inthe statement of financial position aredetermined as follows:

2016 2015

Present value of obligation

The movements in the obligation recognised inthe statements of financial position were asfollows:

2016 2015

Beginning of yearExpenses during the year

RemeasurementsBenefits paid

b. Imbalan jangka panjang lainnya b. Other long-term employee benefits

The Company provides other long-termemployee benefits in accordance with theCompany’s regulations.

The details of the total expenses/(benefit)recognised in the statements of profit or losswere as follows:

2016 2015

Current service costInterest cost

Actuarial (gains)/losses

The expenses were allocated to cost of goodssold and operating expenses.








b. Imbalan jangka panjang lainnya b. Other long-term employee benefits(continued)

The movements in the obligation recognised inthe statements of financial position were asfollows:

2016 2015

Beginning of year

Expenses/(benefit) during the yearBenefits paid

Ending balance

13. MODAL SAHAM 13. SHARE CAPITAL

2016 dan/and 2015Jumlah Presentase Jumlahsaham/ kepemilikan/ modal disetor/

Number of Percentage Total paid-upshares of ownership capital

Preferred shareholders:Taisho Pharmaceutical

Co., Ltd.Public

Common shareholder:Taisho Pharmaceutical

Co., Ltd.

Preferred shares entitle their holders to receive non-cumulative dividend at the minimum of 14.5% frompar value per share based on the Company’sfinancial ability as decided and approved by theGeneral Meeting of Shareholders. Both preferredand common shares entitle their holders toparticipate in dividends and the proceeds on windingup of the Company in proportion to the number ofthe shares held.

Indonesia Stock Exchange previously issued aregulation, which was effective in January 2016,stated that to be listed in Indonesian StockExchange, there are some requirements need to befulfilled. One of them is the minimum shareownership of 7.5% by public shareholders. As at thedate of the financial statements, the public sharesare only 2% of total shares of the Company.







14. TAMBAHAN MODAL DISETOR 14. ADDITIONAL PAID-IN CAPITAL

The balance consists of differences between thetotal par value of the shares as stated in theCompany's Articles of Association and the amountactually paid by the shareholders amounts toRp 77,036,000.

15. SALDO LABA DICADANGKAN DAN DIVIDEN 15. APPROPRIATED RETAINED EARNINGS ANDDIVIDENDS

Based on the latest Annual General Meeting ofShareholders on 16 June 2016 as stated in NotarialDeed No. 15 of Haji Syarif Siangan Tanudjaja, S.H.dated 16 June 2016, the shareholders agreed toincrease the statutory general reserve by Rp 50,000from the 2015 retained earnings and approved todistribute cash dividends of Rp 16,000 (in fullRupiah) for each common share and preferredshare or equivalent to Rp 163,840,000. The cashdividends were paid in July 2016.

Based on the latest Annual General Meeting ofShareholders on 20 May 2015 as stated in NotarialDeed No. 10 of Haji Syarif Siangan Tanudjaja, S.H.dated 20 May 2015, the shareholders agreed toincrease the statutory general reserve by Rp 50,000from the 2014 retained earnings and approved todistribute cash dividends of Rp 16,000 (in fullRupiah) for each common share and preferredshare or equivalent to Rp 163,840,000. The cashdividends were paid in June 2015.

The Company appropriated retained earnings forspecial reserve for unclaimed dividend to complywith the Limited Liability Company Law No.40/2007.

16. PENJUALAN BERSIH 16. NET SALES

2016 2015

Third party (local sales):PPG -

PT Dos Ni Roha (“DNR”)

Related parties (Note 21)export sales)







17. BEBAN POKOK PENJUALAN 17. COST OF GOODS SOLD

2016 2015

Raw and packaging materials:At beginning of year -

Purchases

In transit -At beginning of year

At end of year

At end of year -

Raw and packagingmaterials used

Labor costsDepreciation (Note 7)

Factory suppliesUtilities

Professional feeRepair and maintenance

Building lease and insuranceCommunication

Business meetingTravel and transportation

Others

Total manufacturing costs

Work in progressAt beginning of year -

At end of year -

Cost of goods manufactured

Finished goodsAt beginning of year -

Purchases -

In transit -At beginning of year

At end of year

At end of year -

Cost of goods sold

There were no purchases from a third party supplierwhich exceeded 10% of net sales.







18. BEBAN USAHA 18. OPERATING EXPENSES

a. Beban penjualan dan distribusi a. Selling and distribution expenses

2016 2015

Advertising and promotionRoyalty (Note 21b)

Salaries, allowances andemployee benefits

Building lease and insuranceDepreciation (Note 7)

Travel and transportationBusiness meetings

Professional feesOthers

b. Beban umum dan administrasi b. General and administrative expenses

2016 2015

Salaries, allowances andemployee benefits

Professional feesBuilding lease and insurance

Depreciation (Note 7)Travel and transportation

Others

19. PENDAPATAN LAIN-LAIN, BERSIH 19. OTHER INCOME, NET

2016 2015

Pendapatan lain-lain, terdiri dari: Other income, are as follows:Compensation of product promotions

(Note 25)Toll manufacturing fee

Gain on sale offixed assets (Note 7)

Foreign exchange gain, netOthers

Beban lain-lain, terdiri dari: Other expenses, are as follows:Foreign exchange loss, net

Tax expensesBank charges

Loss on sale offixed assets (Note 7)

Other income, net







20. LABA BERSIH PER SAHAM 20. EARNINGS PER SHARE

2016 2015

Profit for the yearDividends paid to preferred

shareholders

Profit for the yearafter preferred shares dividends

Weighted average number ofcommon shares

Basic/diluted earnings per share(in full Rupiah)

21. INFORMASI MENGENAI PIHAK BERELASI 21. RELATED PARTY INFORMATION

a. Hubungan dengan pihak berelasi a. The nature of relationships with relatedparties

The nature of relationships and transactionswith related parties are as follows:

Pihak berelasi/Related party

Sifat hubungan/Nature of relationship

Sifat transaksi/Nature of transactions

Ultimate Shareholder Payment of dividend and royalty

Entity under common controlSales of

finished goods

Entity under common controlPayment of royalty, sales of

finished goods and purchase offinished goods


finished goods


finished goods

Entity under common controlPurchase of

finished goods

Entity under common controlPurchase of

finished goods







21. INFORMASI MENGENAI PIHAK BERELASI 21. RELATED PARTY INFORMATION (continued)

b. Transaksi dan saldo dengan pihak berelasiyang signifikan

b. Significant transactions and balances withrelated parties

2016 2015Rp % *) Rp % *)

Penjualan barang Sales of goodsOsotspa

TPSTPHIL

HOE

*) *) % of total net sales

2016 2015Rp % *) Rp % *)

Pembelian barang Purchase of goodsTokuhon

HOETPM

*) *) % of total purchases

2016 2015Rp % *) Rp % *)

Biaya Royalti Royalty ExpenseTPJ

HOE

*) *) % of total net sales per productas defined in the agreement

2016 2015Rp % *) Rp % *)

Piutang Usaha Trade ReceivablesOsotspa

TPSTPHIL

HOE

*) *) % of total asset

Trade receivables from related parties aboveare due 60 days after the date of sales. Basedon good credit history, there are no provisionsfor impairment against receivables from relatedparties.

2016 2015Rp % *) Rp % *)

Utang usaha Trade payablesTokuhon

TPMHOE

*) *) % of total liabilities








b. Transaksi dan saldo dengan pihak berelasiyang signifikan

b. Significant transactions and balances withrelated parties (continued)

2016 2015Rp % *) Rp % *)

Utang lain-lain Other payablesTPJ

HOE

*) *) % of total liabilities

c. Kompensasi manajemen kunci c. Key management compensation

The compensation paid to key management foremployee services is shown below:

31 Desember/ 31 Desember/December 2016 December 2015

Jumlah % *) Jumlah % *)

Direksi DirectorsSalaries and other short-

term employee benefitsPension benefits

Dewan Komisaris Board of CommisionerSalaries and other short-

term employee benefits

*) % of total selling and distribution expenses, andgeneral and administrative expenses

d. Perjanjian d. Agreements

i. Perjanjian royalti i. Royalty agreements

Perjanjian royalti dengan TPJ Royalty agreement with TPJ

"Know-how"

The Company entered into an agreementwith TPJ for Trademark, Patent and Know-how license. The royalty charge wasamended to 5% of net sales per product asdefined in the agreement.

This agreement shall commence from 3November 2009 and continue in force forfive years and thereafter shall automaticallybe renewed for an additional one yearperiod, unless either party provides writtennotice of non-renewal to the other party nolater than sixty days prior to the expirationof the agreement. As at 31 December2016, this agreement is still applicable forthe Company.








d. Perjanjian d. Agreements (continued)

i. Perjanjian royalti i. Royalty agreements (continued)

Perjanjian royalti dengan HOE Royalty agreement with HOE

The Company entered into agreementswith HOE for supply and license. Theroyalty charged is 5% of net sales perproducts.

This agreement shall commence from 27December 2013 and continue in force forthree years and thereafter shallautomatically be renewed for an additionalone year period, unless either partyprovides written notice of non-renewal tothe other party no later than six monthsprior to the expiration of the agreement. Asat 31 December 2016, this agreement isstill applicable for the Company.

ii. Perjanjian distribusi ii. Distribution agreement

Perjanjian distribusi dengan TPS Distribution agreement with TPS

The Company entered into a distributionagreement with TPS, in which TPS shallhave the non-exclusive right to, directly orindirectly, import, store, distribute, promoteand sell certain products manufactured oroffered for sale by the Company in thedesignated territory and endeavour topurchase products from the Companybased on the yearly minimum purchaseamount as stipulated in the agreement.

This agreement commenced from3 November 2009. On 3 December 2015,the Company and TPS agreed to extendthis agreement until 31 December 2017.This agreement shall automatically beextended on yearly basis unless eitherparty provides written notice of non-extension to the other party no later thanthree months prior to the expiration of theagreement.









ii. Perjanjian distribusi ii. Distribution agreement (continued)

Perjanjian distribusi dengan HOE danOsotspa

Distribution agreement with HOE andOsotspa

Based on novation agreements dated28 December 2012, sales to the Malaysiaterritory were assigned to HOE (a relatedparty). While, sales to the Thailand territorywas assigned to Osotspa (a related party).

This agreement shall commence from1 January 2013 and continue in full forcefor five years and thereafter shallautomatically be renewed for an additionalyears.

Perjanjian distribusi dengan TPHIL Distribution agreement with TPHIL

On 27 December 2013, the Companyentered into a supply agreement withTPHIL, a related party. Based on thisagreement, TPHIL shall have the non-exclusive right to, directly or indirectly,import, store, distribute, promote and sellcertain products manufactured or offeredfor sale by the Company in the designatedterritory.

This agreement shall commence from27 December 2013 and continue in fullforce for three years and thereafter shallautomatically be renewed for an additionalone year period, unless either partyprovides written notice of non-renewal tothe other party no later than six monthsprior to the expiration of the agreement.

In April 2015, the Company has signed anamendment to this agreement, whichamend the products list.









iii. Perjanjian penyediaan barang danlisensi

iii. Supply and license agreement

Perjanjian dengan HOE Agreement with HOE

In December 2013, the Company enteredinto a supply and license agreement withHOE, a related party. Based on thisagreement, HOE agreed to grant anexclusive right to the Company todistribute, promote and sell products, ofwhich the trademarks are owned by HOE.

This agreement shall continue in force forthree years and thereafter shallautomatically be renewed for an additionalone year, unless either party provideswritten notice of non-renewal to the otherparty no later than six months prior to theexpiration of the agreement. As at 31December 2016, this agreement is stillapplicable for the Company.

Perjanjian dengan Tokuhon Agreement with Tokuhon

In December 2013, the Company enteredinto a supply agreement with Tokuhon, arelated party. Based on this agreement,Tokuhon agreed to give a non-exclusiveright to the Company, directly or indirectly,to import, store, distribute, promote andsell certain products manufactured oroffered for sale by the Company in thedesignated territory.

This agreement shall continue in force forfive years and thereafter shallautomatically be renewed for an additionalthree years, unless either party provideswritten notice of non-renewal to the otherparty no later than one year prior to theexpiration of the agreement.









iii. Perjanjian penyediaan barang danlisensi

iii. Supply and license agreement(continued)

Perjanjian dengan TPM Agreement with TPM

In December 2013, the Company enteredinto a supply agreement with TPM. Basedon this agreement, TPM agreed to give anon-exclusive right to the Company, directlyor indirectly, to import, store, distribute,promote and sell certain productsmanufactured or offered for sale by theCompany in the designated territory.

This agreement shall continue in force forthree years and thereafter shallautomatically be renewed for an additionalthree years, unless either party provideswritten notice of non-renewal to the otherparty no later than six months prior to theexpiration of the agreement. As at 31December 2016, this agreement is stillapplicable for the Company.

22. INFORMASI SEGMEN 22. SEGMENT INFORMATION

Segmen usaha Business segment

The Company operates in one business segmentwhich is the producing and selling of pharmaceuticalproducts and all of the Company's sales are derivedfrom selling the pharmaceutical products. Theinformation relating to the above business segment,which is used by the chief operating decision makerin running the Company was the net sales and theprofit for the year.

23. MANAJEMEN RISIKO KEUANGAN 23. FINANCIAL RISK MANAGEMENT

a. Faktor risiko keuangan a. Financial risk factors

The Company’s activities expose it to a varietyof financial risks: market risk (including currencyrisk), credit risk and liquidity risk.

The Company’s overall risk managementprogram focuses on the unpredictability offinancial markets and seeks to minimisepotential adverse effects on the Company’sfinancial performance.







23. MANAJEMEN RISIKO KEUANGAN 23. FINANCIAL RISK MANAGEMENT (continued)

a. Faktor risiko keuangan a. Financial risk factors (continued)

Risk management is carried out by the Board ofDirectors (“BoD”). The BoD identifies andevaluates financial risks. The BoD reviews andapproves written principles for overall riskmanagement, as well as written policiescovering specific areas, such as foreignexchange risk, credit risk and liquidity risk.These policies and procedures enablemanagement to make strategic and informativedecision with regard to the operations of theCompany.

(1) Risiko pasar (1) Market risk

Risiko nilai tukar mata uang asing Foreign exchange risk

The Company is exposed to foreignexchange risk arising from variouscurrency exposures. Foreign exchange riskprimarily arises from future commercialtransactions and recognised monetaryassets and liabilities that are denominatedin a currency that is not the Company’sfunctional currency.

Management manages its foreign currencyexchange risk through maintainingsufficient cash in foreign currency to coverits maturing obligations denominated inforeign currency.

Net monetary assets and liabilitiesdenominated in foreign currencies aredisclosed in Note 27.

(2) Risiko kredit (2) Credit risk

The Company is exposed to credit riskprimarily from deposits with banks, tradereceivables, and other receivables. TheCompany manages credit risk by usingbanks with a good reputation and ratings.








a. Faktor risiko keuangan a. Financial risk factors (continued)

(2) Risiko kredit (2) Credit risk (continued)

bankguarantee.

The Company has credit risk because theCompany’s product sales are madethrough two distributors, a third party and arelated party. However, the credit risk isconsidered insignificant because the salesare made to distributors with a good credithistory and the third party distributor alsoprovided a bank guarantee.

The maturity profile of trade receivables isin the range of 60 to 90 days.

The maximum exposure to credit risk at thereporting date is the carrying value of eachfinancial asset.

(3) Risiko likuiditas (3) Liquidity risk

Prudent liquidity risk management impliesmaintaining sufficient cash to meetoperating capital requirements. TheCompany aims to maintain flexibilitythrough adequate cash fund and short-termplacements, and availability of funding inthe form of adequate credit lines.

Management believes that the Companyhas sufficient liquidity to extinguish itsliabilities when they are due which isexpected to be within one year.

The contractual amount of undiscountedcash flows at the reporting date is thecarrying value of each financial liability.

b. Estimasi nilai wajar b. Fair value estimation

The gross carrying amount for financial assetswith a maturity of less than one year, includingcash and cash equivalents and trade and otherreceivables, are assumed to approximate theirfair values due to their short-term maturity.

The carrying values of financial liabilities withmaturity of less than one year, including tradeand other payables, are assumed toapproximate their fair values as the impact ofdiscounting is not considered significant.








c. Manajemen risiko permodalan c. Capital risk management

The Company’s objectives when managingcapital are to safeguard the Company’s abilityto continue as a going concern whilst seekingto maximise benefits to shareholders and otherstakeholders.

The Company periodically reviews andmanages its capital structure to ensure optimalcapital structure and shareholder returns,taking into consideration the future capitalrequirements and capital efficiency of theCompany, prevailing and projected profitability,projected capital expenditures and projectedstrategic investment opportunities. TheCompany also reviews and manages its cashon a daily basis.

Total capital is calculated as “equity” as shownin the statements of financial position plus netdebt.

24. ESTIMASI DAN PERTIMBANGAN AKUNTANSIYANG PENTING

24. CRITICAL ACCOUNTING ESTIMATES ANDJUDGEMENTS

Estimates and judgements used in preparing thefinancial statements are continually evaluated andare based on historical experience and other factors,including expectations of future events that arebelieved to be reasonable. Actual results may differfrom these estimates. The estimates andassumptions that have a significant effect on thecarrying amounts of assets and liabilities aredisclosed below.

Aset tetap Fixed assets

The Company determines the estimated usefullives and related depreciation charges for theCompany’s fixed assets. The Company will revisethe depreciation charge where useful lives aredifferent to those previously estimated, or it willwrite off or write down assets which are technicallyobsolete.







24. ESTIMASI DAN PERTIMBANGAN AKUNTANSIYANG PENTING

24. CRITICAL ACCOUNTING ESTIMATES ANDJUDGEMENTS (continued)

Kewajiban imbalan kerja Employee benefits obligation

The present value of the employee benefitsobligation depends on a number of factors that aredetermined on an actuarial basis using a number ofassumptions. The assumptions used in determiningthe net cost for pensions is the relevant discountrate and salary increase. Any changes in thisassumption will impact the carrying amount ofemployee benefits obligation.

In determining the appropriate discount rate, theCompany considers the interest rates ofgovernment bonds that are denominated in thecurrency in which the benefits will be paid and thathave terms to maturity approximating the terms ofthe related pension obligation.

Other key assumptions for employee benefitsobligation are based in part on current marketconditions.

Perpajakan Taxation

The Company operates under the tax regulations inIndonesia. Significant judgement is required indetermining the provision for income taxes andvalue added taxes. Where the final tax outcome ofthese matters is different from the amounts thatwere initially recorded, such differences will berecorded in profit or loss in the period in which suchdetermination is made.

Penyisihan atas penurunan nilai persediaan Provision for impairment of inventories

Management periodically evaluates the adequacy ofprovision for expired and damaged inventories,including the decline in the net realisable value ofinventories below the recorded costs.

These evaluation require management to estimatefuture demands for those inventory items. Possiblechanges in these estimates could result in revisionsto the provision for impairment of inventories infuture periods.

Akrual Accruals

The Company periodically evaluates theappropriateness of accruals, including sales returnand discounts, advertising and promotion and salesincentives based on historical experiences, actualsales performance achievement and actualactivities incurred during the year.







25. PERJANJIAN – PERJANJIAN PENTING 25. SIGNIFICANT AGREEMENTS

a. Perjanjian distribusi a. Distribution agreement

i. The Company appointed PPG as theexclusive distributor of the Company'sproducts in Indonesia effective at 1 July2016 until 30 June 2019. The distributionagreement with PPG also covers salespromotion and marketing serviceagreement.

ii. The distributorship agreement between theCompany and DNR ended at 30 June2016.

iii. In May 2013, the Company entered into adistributorship agreement with Bristol-Myers Squibb (“BMS”) in which theCompany was appointed as a distributorfor Baraclude products. The Company alsoreceives purchase discounts in relation topromotional services for Baracludeproducts from BMS. This agreement shallcontinue in force for five years and expireon 31 December 2017.

iv. In June 2016, BMS and the Company hasagreed to discontinue the portion of theDistributorship Agreement with respect tothe promotion services. The Companyreceived a compensation of discontinuedpromotion services from BMS ofRp 8,247,162. The Company, however, willcontinue to perform other services in theDistributorship Agreement until the expireddate, which is at 31 December 2017.

b. Perjanjian pinjaman bank b. Bank loan agreement

The Company has a credit facility with PT BankSumitomo Mitsui Indonesia for a maximumamount of USD 5,000,000 or its equivalent inIndonesian Rupiah or Japanese Yen. Thisfacility is for the purpose of working capital andwill expire in June 2017. As at 31 December2016, the Company did not use this facility.

c. Perjanjian pabrikasi c. Manufacturing agreement

Perjanjian pabrikasi dengan PT Johnson &Johnson Indonesia (“J&J”)

Manufacturing agreement with PT Johnson& Johnson Indonesia (“J&J”)

In September 2001, the Company entered intoa manufacturing agreement with J&J. In thisagreement, the Company shall performmanufacturing services for J&J with the certainspecification. J&J shall pay a manufacturingfee to the Company based on the term of theagreement. This agreement shall continue inforce unless there is a written notification eitherfrom the Company or J&J.







26. KOMITMEN 26. COMMITMENTS

The Company leases an office under operatinglease agreements to PT Pantoru Mas. The leaseterms are between one and two years, and themajority of lease agreements are renewable at theend of the lease period at the market rate.

The future aggregate minimum lease paymentsunder non-cancellable operating leases are asfollows:

2016 2015

No later than 1 yearLater than 1 year and no later

than 5 years

On 20 December 2016, the Company entered intoan agreement for manufacturing improvementcompliance with PT Sejahtera Artha Guna (“SAG”),a third party, whereby SAG agreed to provide civiland mechanical electrical works which expected tocomplete in 4 months. Total agreed price wasRp 4,058,632.

As at 31 December 2016, the Company has paid fora certain amount of Rp 1,217,589 and included aspart of "construction in progress".

27. ASET DAN LIABILITAS MONETER DALAMMATA UANG ASING

27. MONETARY ASSETS AND LIABILITIESDENOMINATED IN FOREIGN CURRENCIES

31 Desember/ 31 DesemberDecember 2016 December 2015

Jumlah dalam Jumlah dalammata uang mata uang

Mata uang asing/ Ekuivalen asing/ Ekuivalenasing/ Amount in Rupiah/ Amount in Rupiah/

Foreign foreign Rupiah foreign Rupiahcurrencies currencies equivalent currencies equivalent

Aset AssetsCash and cashequivalents

Trade receivablesOther receivables

Liabilitas LiabilitiesTrade payables

Other payables

Aset bersih Net asset







27. ASET DAN LIABILITAS MONETER DALAMMATA UANG ASING

27. MONETARY ASSETS AND LIABILITIESDENOMINATED IN FOREIGN CURRENCIES(continued)

If the exchange rate of Rupiah as at 31 December2016 appreciates/depreciates by 5% against theforeign currencies of the above monetary assetsand liabilities, with all other variables remainingconstant, the profit after tax of the Company woulddecrease/increase by Rp 4,326,022(2015: Rp 918,092).

28. INFORMASI TAMBAHAN UNTUK LAPORANARUS KAS

28. SUPPLEMENTARY INFORMATION FOR CASHFLOWS

2016 2015

Purchase of fixed assets andconstruction in progress through

incurrence of other payablesand accruals


78


Informasi Harga Saham 2 Tahun Terakhir Share Price Information for the Last 2 Years

Transaksi Per 3 BulanTransaction per Quaterly

TertinggiHighest

TerendahLowest

Januari - MaretJanuary - March

April - JuniApril – June

Juli - SeptemberJuly - September

Oktober - DesemberOctober - December

Januari - MaretJanuary - March

April - JuniApril – June

Juli - SeptemberJuly - September

Oktober - DesemberOctober - December

338,000 305,000 320,000

320,000 307,000 311,000

414,000 311,000 413,500

413,500 413,500 413,500

320,000 315,000 320,000

320,000 290,000 315,000

335,000 290,000 335,000

338,000 335,000 338,000

Komposisi Pemegang Saham Shareholders Composition

Pemegang Saham Preferen (Seri A)Preferred Shareholders (A Series)

Presentase Kepemilikan Saham Share

MasyarakatPublic

Taisho Pharmaceutical Co., Ltd.

Jumlah Total

Pemegang Saham Biasa (Seri B)Common Shares (B Series )

Taisho Pharmaceutical Co., Ltd.

281

1

207,760

764,240

1 9,268,000

282 10,240,000

2%

7%

91%

100%

2016

2015

PenutupanClosing

TahunYear

ANNUAL REPORT Laporan Keuangan 2016

Pemegang SahamShareholders


Penasehat HukumLegal AuditorsKartini Muljadi SH & Associates

Akuntan PublikAuditorsTanudiredja, Wibisana, Rintis & RekanPricewaterhouseCoopers

BankBankCitibank, NA

WebsiteWebsitewww.taisho.co.id

Alamat PabrikFactory AddressJl. Raya Jakarta-Bogor Km. 38Cilangkap, Tapos Depok 16458, IndonesiaTelephone: +62 21 875-2583 / 875-2584Facsimile: +62 21 875-2585

Alamat Kantor PusatHead Office Address Tamara Center 10th FloorJl. Jend. Sudirman Kav. 24Jakarta 12920 Telephone: +62 21 520 6720Facsimile:+62 21 520 6735

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