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PT Gajah Tunggal Tbk GJTLLast Close 08 Apr 2016 Quantitative Fair Value Est 08 Apr 2016 Market Cap 08 Apr 2016 Sector Industry Country of Domicile

745.00 991.38 2,595.9 Bil t Consumer Cycl ic al Rubber & P last ics IDN Indonesia

PT Gajah Tunggal Tbk is a integrated tire manufacturer in

Southeast Asia and produces and markets tires and inner

tubes for motorcycle, passenger cars, commercial and heavy

equipment vehicles.

Quantitative Scores ScoresAll Rel Sector Rel Country

Quantitative Moat None 1 1 1

Valuation Undervalued 97 92 97

Quantitative Uncertainty Very High 38 29 32

Financial Health Moderate 21 10 9

Source: Morningstar Equity Research

t IDN

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Undervalued Fairly Valued Overvalued

ValuationCurrent 5-Yr Avg

SectorMedian

CountryMedian

Price/Quant Fair Value 0.75 0.84 0.87 0.95

Price/Earnings — 16.4 17.7 15.4

Forward P/E — — 13.7 13.9

Price/Cash Flow 2.0 10.5 10.1 8.5

Price/Free Cash Flow — 19.5 16.9 11.2

Trailing Dividend Yield % 1.34 1.01 2.41 2.20

Price/Book 0.5 1.5 1.7 1.2

Price/Sales 0.2 0.6 0.9 1.3

ProfitabilityCurrent 5-Yr Avg

SectorMedian

CountryMedian

Return on Equity % -13.1 14.6 11.8 12.0

Return on Assets % -4.4 5.3 5.3 4.3

Revenue/Employee (Mil) 858.4 906.1 0.5 900.3

Quantitative Moat Score

100

0

20

40

60

80

2009 2010 2011 2012 2013 2014 2015 2016

Financial HealthCurrent 5-Yr Avg

SectorMedian

CountryMedian

Distance to Default 0.3 0.4 0.6 0.6

Solvency Score — — 492.5 546.5Assets/Equity 2.7 2.6 1.8 2.1

Long-Term Debt/Equity 1.0 0.9 0.2 0.3

Price Versus Quantitative Fair Value

826

1,652

2,478

3,304

4,130

2012 2013 2014 2015 2016 2017

Quantitative Fair Value Estimate

Total Return

Sales/Share

Forecast Range

Forcasted Price

Dividend

Split

Momentum: —

Standard Deviation: 53.48

Liquidity: High

418.00 52-Wk 1,30

418.00 5-Yr 3,67

-26.3 -22.4 -14.6 -62.1 40.6 Total Return %

-45.4 -42.8 -11.3 -61.5 41.1 +/– Market (Morningstar WorldIndex)

0.45 1.61 0.70 1.89 — Trailing Dividend Yield %

— — — — 1.34 Forward Dividend Yield %

8.9 10.4 35.6 -2.6 -3.6 Price/Earnings

0.6 0.5 0.4 0.1 0.2 Price/Revenue

Morningstar Rating

QQQQQQQQQQQQQQQ

2010 2011 2012 2013 2014 TTM Financials (Fiscal Year in Bil)

9,854 11,841 12,579 12,353 13,071 12,931 Revenue

24.2 20.2 6.2 -1.8 5.8 -1.1 % Change

1,287 1,010 1,677 166 394 -874 Operating Income

12.4 -21.6 66.1 -90.1 136.7 -321.8 % Change

831 684 1,132 120 270 -716 Net Income

— — — — — — Operating Cash Flow

-749 -800 -1,872 -868 -1,433 -1,468 Capital Spending

262 -496 -165 431 -1,281 -153 Free Cash Flow

2.7 -4.2 -1.3 3.5 -9.8 -1.2 % Sales

238.00 196.00 325.00 35.00 77.00 -205.46 EPS

-8.5 -17.6 65.8 -89.2 120.0 -366.8 % Change230.09 -44.89 -86.06 131.54 -398.21 -43.91 Free Cash Flow/Share

12.75 12.00 10.00 27.00 10.00 10.00 Dividends/Share

766.37 1,241.29 1,456.70 1,652.79 1,698.71 1,445.73 Book Value/Share

3,485 3,485 3,485 3,484 — 3,484 Shares Outstanding (Mil)

Profitability

26.8 17.2 22.9 2.2 4.6 -13.1 Return on Equity %

8.6 6.2 9.3 0.9 1.7 -4.4 Return on Assets %

8.4 5.8 9.0 1.0 2.1 -5.5 Net Margin %

1.02 1.08 1.03 0.88 0.83 0.79 Asset Turnover

2.9 2.6 2.3 2.7 2.7 3.4 Financial Leverage

19.7 14.1 19.4 18.4 18.7 19.5 Gross Margin %

13.1 8.5 13.3 1.4 3.0 -6.8 Operating Margin %

— 3,722 3,769 5,961 6,124 7,259 Long-Term Debt

3,527 4,431 5,478 5,724 5,983 5,038 Total Equity

2.6 2.7 2.3 2.0 1.9 1.6 Fixed Asset Turns

Growth Per Share1-Year 3-Year 5-Year 10-Year

Revenue % 5.8 3.4 10.5 —

Operating Income % 136.7 -26.9 -19.2 —

Earnings % 124.3 -26.7 -21.5 —

Dividends % -63.0 -5.9 — —

Book Value % 4.5 10.1 17.5 —

Stock Total Return % -40.6 -33.1 -19.3 2.3

Quarterly Revenue & EPS

Revenue (Bil) Mar Jun Sep Dec Total

2015 3,075.3 3,120.5 3,347.2 — —

2014 3,199.7 3,362.1 3,120.7 3,388.3 13,070.7

2013 3,038.0 3,091.1 2,979.8 3,244.0 12,352.9

2012 3,145.8 3,220.0 3,015.6 3,197.2 12,578.6

Earnings Per Share ()

2015 -83.00 -17.52 -114.36 — —

2014 96.00 -30.72 -0.94 12.87 77.00

2013 99.00 33.01 -72.85 -24.48 35.00

2012 73.00 78.03 72.19 101.72 325.00

Revenue Growth Year On Year %

-1.2

1.5

5.3

8.8

4.7 4.4

-3.9

-7.2

7

2013 2014 2015

Quantitative Equity Report | Release: 09 Apr 2016, 09:22, GMT-05:00 | Reporting Currency: IDR | Trading Currency: IDR

© Morningstar 2016. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses andopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore is not an offer to buy or sell a security; are not warranted to be correct, complete or accurate; andare subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data,analyses or opinions or their use. The information herein may not be reproduced, in any manner without the prior written consent of Morningstar. Please see important disclosures at the end of this report.

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Quantitative Equity Report Disclosure

The Quantitative Equity Report (“Report”) is derived from data, statistics andinformation within Morningstar, Inc.’s database as of the date of the Report andis subject to change without notice. The Report is for informational purposesonly, intended for financial professionals and/or sophisticated investors(“Users”) and should not be the sole piece of information used by such Users ortheir clients in making an investment decision. While Morningstar has obtaineddata, statistics and information from sources it believes to be reliable,Morningstar does not perform an audit or seeks independent verification of anyof the data, statistics, and information it receives.

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Quantitative Equity RatingsMorningstar’s quantitative equity ratings consist of: (i) Morningstar Rating (Q)Quantitative (ii) Quantitative Fair Value Estimate, (iii) Quantitative Valuation, (Quantitative Uncertainty, (v) Quantitative Economic Moat, and (vi) QuantitativFinancial Health (collectively the “Quantitative Ratings).

The Quantitative Ratings are forward-looking and are generated by a statisticmodel that is based on analyst-driven ratings, including Morningstar’s FairValue Estimate, Morningstar® Economic Moat™ Rating, and Uncertainty Ratias well as financial data points such as earnings yield, average daily volume,and total return volatility, among others.

The Quantitative Ratings are calculated daily and derived from the analyst-driven ratings of a company’s peers as determined by statistical algorithms.Morningstar calculates Quantitative Ratings for companies whether or not italready provides analyst ratings and qualitative coverage. In some cases, theQuantitative Ratings may differ from the analyst ratings because a company’sanalyst-driven ratings can significantly differ from other companies in its peergroup.

i. Morningstar Rating (Q): Intended to represent the ratio of a stock’sQuantitative Fair Value Estimate to its most recent close price.The rating iscalculated daily based on the discount or premium in the last closeprice of the stock compared to the Quantitative Fair Value Estimate. Itexpressed as one through five stars, denoted with a superscript ‘Q’, with 5 sta

representing a stock trading at the most significant discount to the QuantitatiFair Value Estimate and 1 star representing a stock trading at the biggestpremium to the Quantitative Fair Value Estimate.

ii. Quantitative Fair Value Estimate: Intended to represent Morningstar’sestimate of the per share dollar amount that a company’s equity is worth todaMorningstar calculates the Quantitative Fair Value Estimate using a statisticamodel derived from the Fair Value Estimate Morningstar’s equity analystsassign to companies.

iii. Quantitative Economic Moat: Intended to describe the strength of a



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firm’s competitive position. It is calculated using an algorithm designed topredict the Economic Moat rating a Morningstar analyst would assign to thestock. The rating is expressed as None, Narrow, and Wide.

iv. Quantitative Valuation: Intended to represent the ratio of a stock’sQuantitative Fair Value Estimate to its most recent close price and is similar tothe analyst-driven Fair Value Estimate to last market close price ratio. The ratingis expressed as Overvalued, Fairly Valued, and Undervalued.

v. Quantitative Uncertainty: Intended to represent Morningstar’s level ofuncertainty about the accuracy of the Quantitative Fair Value Estimate.

Generally, the lower the Quantitative Uncertainty, the narrower the potentialrange of outcomes for that particular company. The rating is expressed as Low,Medium, High, Very High, and Extreme.

vi. Quantitative Financial Health: Intended to reflect the probability that afirm will face financial distress in the near future. The calculation uses apredictive model designed to anticipate when a company may default on itsfinancial obligations. The rating is expressed as Weak, Moderate, and Strong.

The Quantitative Ratings are not statements of fact. Morningstar does notguarantee the completeness or accuracy of the assumptions or models used indetermining the Quantitative Ratings. In addition, there is the risk that the pricetarget will not be met due to such things as unforeseen changes in demand for

the company’s products, changes in management, technology, economicdevelopment, interest rate development, operating and/or material costs,competitive pressure, supervisory law, exchange rate, and tax rate. Forinvestments in foreign markets there are further risks, generally based onexchange rate changes or changes in political and social conditions. A change inthe fundamental factors underlying the Quantitative Ratings can mean that thevaluation is subsequently no longer accurate.

Prices noted with the Report are the closing prices on the last stock-markettrading day before the publication date stated, unless another point in time isexplicitly stated.

The Quantitative Ratings noted the Report are provided in good faith, are as ofthe date of the Report and are subject to change. While Morningstar has

obtained data, statistics and information from sources it believes to be reliable,Morningstar does not perform an audit or seeks independent verification of anyof the data, statistics, and information it receives.

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