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PT Mega Manunggal Property Tbk


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Agenda presentation

Section Pages

1 Brief profile of MMP 1

2 Review of MMP business 5

3 Investment thesis 12

4 Company recent updates 18

5 Financial review 21

6 Growth Strategy 27

7 Industry 31

8 Investment consideration 37

9 Appendix 1 Financial Information 38


Section 1

Brief Profile of MMP


Company at a glance

7

Overview

PT. Mega Manunggal Property Tbk

(“MMP”) is a warehouse provider that

supports industrial property needs in

Indonesia focusing on develops, owns

and operates logistic properties, with a

focus in warehousing that specifically

meet international standards.

Established on mid 2010, currently

MMP have Net Leasable Area of al a

total 163,911 sqm (including a 90,000

sqm NLA warehouse for PT Unilever

Indonesia, one of the the largest

Unilever warehouses globally)

ProjectsCurrently MMP has 4 assets in 2 different

strategic locations :

Bekasi MM 2100 :

Unilever Mega DC

Li & Fung Logistic

Selayar

Halim Cililitan East Jakarta :

Intirub Business Park

And we were building our 5th warehouses

for LAZADA (the larget

E-commerce in Indonesia in Jalan Raya

Bogor Depok

-

FacilitiesStandard High performance

modern logistic facility

specifications PT. Mega

Manunggal Property Tbk existing

portfolio is comprised of modern

logistics facilities equipped with

high-performance specifications

typically required by international

MNCs and 3PLsto produce high

quality goods and services that

competitive and supportive for

strengthening of national food

resilience based on sound

business ethics.

1


Brief profile of PT Mega Manunggal Property Tbk

MMP’s shareholder structure (as of December 2015)

74,7%

PT Daya Sakti

Perdika

PT Mega Manunggal

Property Tbk

Unilever

Mega DC

Li & Fung

Intirub Business

Park I & II

Selayar

The Nicholas

PT Mega Mandiri

Property

PT Mega

Khatulistiwa

Properti

PT Mega Tridaya

Properti

15%10,3%

69,3%

1%

99,5%

PT Intirub

99,0%99,5%

0,7%

1%

Hungkang

Sutedja

Public30%

PT Mega Dharma

Properti

0,5%

0,5%

99,0%

2


Fernandus Chamsi

President Director

Bonny Budi Setiawan

Independent Director

Johny Johan

Director

Company’s management

Board of

commissioners

Board of directors

Hungkang Sutedja

President Commissioner

Tri Ramadi

Vice President

Commissioner

Nicholas The

Commissioner

Abdul Rahim Tahir

Independent

Commissioner

Debbie Ana Sumargo

Independent

Commissioner

3


Track record of MMP

2018

October 2010

Construction of

Unilever Mega

DC began

8-2010 3-2011 4-2012

5-201312-201110-2010 5-2013

10-2012 6-2014

2-2015 20181-2014 12-20142010 2011 2012 2013 2014 2015

Decemer 2011

DHL began its

operational in

Intirub Business

Park I

NLA: 28.036 m2

2016

December 2014

Construction of

Selayar

completed

NLA: 5.620 m2

August 2010

MMP was

established

May 2013

Construction of Li

& Fung

completed

NLA: 21.612 m2

August 2015

Signing Lazada

December 2016

Acquired 9 ha

land for Lazada

Project

April 2012

Construction of

Unilever Mega

DC completed

NLA: 90.288 m2

June 2014

Construction of

Intirub Business

Park II completed

NLA: 18.355 m2

June 2015

Initial Public

Offering

(IPO)

November 2015

Signing MOU

with Daiwa

4


Section 2

Review of MMP Business


Location MMP’s logistic properties

5

Marunda

Center

Tanjung

Priok

Port

Jababeka

Growing industrial

estates

(automotive,

consumer, light and

medium industries)

Kota Deltamas

Modern

Bekasi

Industrial estates

expansion areas

Jakarta

Industrial

Estate

Soekarno

Hatta

Airport

Unilever

Li & Fung

Selayar

Intirub

Business

Park

Halim

Lippo

Cikarang

Access to Bandung

and Cikampek

(main transportation

route of goods)

Access to Merak

port and

Lampung

(main

transportation

route to

Sumatera)

MM2100

Heavy

industry and

petrochemica

l estates

Lazada

Depok

(in km)Intirub Business

ParkUnilever Mega DC Li & Fung Selayar Lazada

Distance to Jakarta 0 35 35 35 22

Distance to Tanjung Priok port 22 48 48 48 43

Distance to International Airport 39 68 68 68 60


Logistic property profile – Unilever Mega DC

Location : MM2100 industrial estates, West

Cikarang, Bekasi

Land area : 194.297 m2

Gross floor area : 156.462 m2

NLA : 90.288 m2

Lease period : 10 years, with an option to extend

another 10 years

Operator : PT Linfox Logistics Indonesia

Floor capacity : 6 ton per m2

Ceiling height : 12 m (center 17 m)

Specification:

- Super flat floors (FF; Floor Flatness);

- Double deep pallet racking system;

- Heat shield;

- Parking area up to 104 truck;

- 85 loading doors;

- 8 loading dock levelers;

- Sprinkler on each rack, with immediate response;

- Fire extinguisher with standard of ULFM;

- Rental that include racking, sprinkler and office.

6


Logistic property profile – Li & Fung

Location : M2100 industrial estates, West Cikarang,

Bekasi



NLA : 21.612 m2

Lease period : 5 years, with option to extend for another 5

years


Ceiling height : 11 m (center 12,5 m)

Tenant : PT LF Services Indonesia (part of Li &

Fung Ltd. Group) / Fonterra & ARK / Ultra

Jaya

Specification:

- Super flat floor;

- 38 loading doors with tight sealing to keep hygiene;

- Heat shield;

- 19 loading dock levelers

7


Logistic property profile – Intirub Busines Park I & II

Intirub Business Park I

Location : Halim, East Jakarta


Gross floor area : 30.086 m2 (warehouse) + 5.455 m2 (office)

NLA : 23.397 m2 (warehouse) + 4.639 m2 (office)

Floor capacity : up to 4,5 ton per m2

Ceiling height : 10 m

Warehouse specification : warehouse with semi basement, 3 floor

office and parking area

Special specifications : 5 loading dock levelers

Tenants : DHL, ARK/Ingram, Yokogawa, aCommerce

(warehouse), Bank BNI46, DHL,

Mahadasha, Scan Global (office)

Intirub Business Park II

Location : Halim, East Jakarta


Gross floor area : 23.219 m2 (warehouse) + 5.696 m2 (office)

NLA : 13.709 m2 (warehouse) + 4.646 m2 (office)

Floor capacity : up to 4,5 ton per m2

Ceiling height : 9 m

Warehouse specification : warehouse with semi basement, 3 floor

office and parking area

Special specifications : 10 loading dock levelers

Tenants : Grundfos, DHL, ARK, MHE-Demag

(warehouse), Grundfos, Deraya, MHE-

Demag (office)

8


Property logistic profile – Selayar

9

Location : MM2100 industrial estates, West

Cikarang, Bekasi



NLA : 5.620 m2


Ceiling height : 9 m (center 13 m)

Special specifications : 6 loading doors with 2 loading dock

levelers

Tenants : Yusen Logistics Solution Indonesia


Building value delivering result

17

From Abandoned Factory In progress to become the largest DC for LAZADA Indonesia

10


Property logistic profile – Lazada

Location : Tapos, Depok


Gross floor area : +/- 62.000 m2 (phase 1 and phase 2)

Lease period : 10 years, with option to extend for

another 5 years


Ceiling height : 12 m (center 16m)

Tenant : LAZADA

Specification:

- Flat floor;

- Parking Area & Basement Area

- Double Decker (stage 2)

11


Section 3

Investment Thesis


Provider of high quality and international standard logistic properties

Note: Not all MMP’s logistic properties are equipped with the above specifications

Standard

warehouse

Unilever

Mega DCLi & Fung

Intirub

Business ParkSelayar Lazada

Floor

capacity≤ 1,5 ton/m2 s/d 6 ton/m2 s/d 6 ton/m2 s/d 4/4,5 ton/m2 s/d 4 ton/m2 s/d 4 ton/m2

Ceiling

height≤ 5,0 m

12 m

(center 17 m)

11 m

(center 12,5 m)

10 m (Tahap I)

9 m (Tahap II)

9 m

(center 13m)

12 m

(center 16 m)

Distance

between

pillar

≤ 8,0m

Main area:

18 x 36 m

Area aerosol:

9 x 28,5 m

27 x 18 m;

30 x 18 m

Stage 1:

Basement: 8 x 8 m

Ground Floor

8 x 30 m

Stage 2:

Basement:

6 x 15 m

Ground Floor

12 x 30m

30 x 12m24 x 18 and

32 x 18

Level singleSingle (multi

racking)

Single (multi

racking)Multi Single

Single (multi

racking

Flooring standar Super flat Super flat Flat Flat Flat

Warehouse specificationTypical specification from high-performance logistic

properties

1

2

33

Office space

Better working

environment for

employees

2

3

1

Car Berths

Number of facilities that

allow trucks to

loading/unloading efficiently

Dock shelters

To prevent and protect from wind,

rain, moisture, dust, etc., while

handling cargos.

Ceiling height of 5,0 m or

more to provide space for

cargo lifting using

forklifts

Distance between

pillar 8,0 m or more

to increase

efficiency

Floor capacity 1,5 ton/m2

or more to accommodate

use of forklifts

MMP’s existing logistic properties surpass main criteria and specification for modern logistic

properties.

912


2012 2013 2014 2015

Unilever IBP I L&F IBP II Selayar

163.757 163.911

118.199

139.811

Proven track record in developing and delivering logistic properties

Growth in NLA in the past 3 years

MMP has proven track record in acquiring land and developing logistic properties, which generally takes around 9 to 18 months to complete

construction.

Consistency in maintaining occupancy rate above 90%

Project Land Area Gross Floor Area Net Leasable Area Date of Contract Months to develop Delivery date

Unilever Mega DC 194.297 m2 156.462 m2 90.288 m2 15 December 2010 16 months 25 April 2012

Li & Fung 34.637 m2 21.702 m2 21.612 m2 9 July 2012 11 months 15 May2013

Standard Warehouse Building

Project Land Area Gross Floor Area Net Leasable Area Months to develop

Intirub Business Park I 28.195 m2 30.086 m2 (warehouse) + 5.455 m2 (office) 23.397 m2 (warehouse) + 4.639 m2 (office) 9 months

Intirub Business Park II 32.380 m2 23.219 m2 (warehouse) + 5.696 m2 (office) 13.709 m2 (warehouse) + 4.646 m2 (office) 18 months

Selayar 9.164 m2 5.742 m2 5.620 m2 12 months

CAGR 17,7%

Built-to-suit

(m2)

90%

97%

94%Occupancy rate 97%

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5

Unilever IBP I L&F IBP II Selayar

154.623 159.318

105.657

135.311

13


Solid business model

Unilever Mega DC

(operated by Linfox)Li & Fung

Rental revenue

2015:

Rp 85,97 bn

Rental revenue

2015:

Rp 13,95 bn

Intirub Business Park

Rental revenue

2015:

Rp 60,93 bn

Selayar

14

MMP focus towards developing warehouse with size of

5.000 to 100.000 m2.

Built-to-suit tenants that currently contribute around 70%of

total revenues minimizes risks of tenants exiting.

Stable operating cash flow with greater upside potential

from improving economy cycle, while at the same time

sheltered against downside risks from economy slowing.

High operating leverage with high EBITDA margin.

Improve tenants’ efficiency and productivities through

centralization of warehouses.

Competitive advantages Operating assets that provide recurring and stable cash flow

Rental revenue

2015:

Rp 2,64 bn


MMP’s logistic properties are located strategically in Indonesia

Near centre of production and consumption

Easy access towards transportation network

Easy supply of labour workforce and convenient transportation for employees

Provide benefits to tenants in reducing logistic costs

Sumber: Himpunan Kawasan Industri

% Industrial estate areas % Industrial estates that are

developed

Jakarta, Banten &

Jabar71%

Jateng5%

Jatim8%

Riau & Kep. Riau8%

Sumut5%

Sumbar0%

Sulsel2%

Kaltim1%

Jakarta, Banten &

Jabar57%

Jateng6%

Jatim9%

Riau & Kep. Riau9%

Sumut4%

Sumbar1%

Sulsel2%

Sulteng4%

Kaltim3%

Bangka Belitung5%

15

Located in Java Island that is the centre for industries with the largest industrial estates in Indonesia


MMP’s logistic properties are located closer to consumers

BESTCinere

Kunciran

Tangerang

CengkarengPenjaringan

Tanjung Priok

DKI

JakartaKebon

Jeruk

Ulujami

Veteran

(Pd Pinang)

Jagorawi

(Cimanggis)

Jawa Barat

Cibitung

Cikunir

Jatiasih

Hankam Raya

(Jatiwarana)

Taman

Mini

Laut Jawa

Banten

Bekasi

Cakung

Cilincing

(Rorotan)

15

14

1312

9

8

765

3

2

1

16

17

11

4

10

Operational

In construction

Negotiation/tender

Contract signed

1 to 9 JORR I

10 to 17 JORR II

16

Located in Java Island that is the centre for industries with the largest industrial estates in Indonesia

Source: PT Bekasi Fajar Tbk.


Creating trust among our clients

ConsumptionLogistic

Bank

Logistic

E-commerce

Manufacturing

Training

Build to Suit

Multi Tenant

Tenant profile of MMP’s logistic properties as of 31 December 2015

17

Bank0%

Consumer58%

Distributor0%

E-commerce6%

IT0%

Logistics27%

Manufacture6%

Service1%

Trading1% Training

Center1% E-commerce


Section 4

Company recent updates


A strategy that focuses on three factors of success to reach scalable size

Three factors of success

18

Efficiency Funding

Volume

500,000 m2

NLA

Min of 10%

average initial

yield

To achieve our NLA target of 500,000 m2 in 3 years

Continues to reduce construction cost to maximize yield

to cost

Sustainable of funding structure and recycle of cash

To accelerate growth and generate stable cash flow

Sustain profitability and greater EBITDA margin

Timely execution of development

To increase transparency and good corporate

governance

Our strategy is simplified into three factors – funding, efficiency and volume. Timely ability to seek flexible funding structure and continues effort to

reduce cost will maximize yield to cost. This will lead to greater profitability. Our initial scalable size to be achieved over the next 3 years is

500,000m2 NLA.


We have secured partnership DHI, one of the world

largest logistic property developers and in the advanced

discussion with another partnership

This will create transparency and good corporate

governance

The partnership will bring a total of Rp2.7trn of funding

that will accelerate the development of the projects

The partnership will reduce cost of fund and increase

the average overall yield to cost

MMP will continue to have stable cash flow from its

existing 4 warehouses that potentially gives upside to

future dividend payment

All development will be conducted under PT Mega

Khatulistiwa Properti

Each project will be set under one company to monitor

the performance of each project and for the purpose of

future monetization should opportunity arises

Our corporate structure allows for flexible funding

19

Our corporate structure allows for flexible funding structure. Partnership with largest logistic properties developers in the world would expedite the

development of the properties and to ensure that funding is met on timely basis.

PT Mega Manunggal

Property Tbk

Unilever

Mega DC

Li & Fung

Intirub Business

Park I & II

Selayar

PT Mega Khatulistiwa

Properti

PT Manunggal

Persada Property

PT Mega Tridaya

Properti

(67%)

99,5%

PT Intirub

99,0%99,5%

DHI

PT Mega Dharma

Properti

90%

99,0%

(51%)

(49%)

(33%)

GIC


Continuous effort to cut costs amid aggressive capacity expansion

20

We have successfully cut down our construction cost by 10% on recent development plan

We set our yield to cost for at least of 10%

We strengthen our engineers team to look for best possible design that will cut any unnecessary cost

We continue to monitor construction progresses to align with existing budget

Efficiency

Volume

Plan to construct 4 to 5 warehouses this years

Block AE to do ground breaking this year – a 35,000 m2 sheltered warehouse

Phase II warehouse for Lazada to begin in 2H16 – 30,000 m2

Block H to have scheduled set for in the mid of 2016

There are two more warehouses to be built in 2H16, pending land clearance


Section 5

Financial Review


Solid revenues growth

Development of NLA and Occupancy Rate Each asset contribution towards revenues

In the past 2 years, MMP has successfully posted a 51,2% CAGR to Rp141,9bn in 2014 supported by growth in NLA and occupancy rate. As of

December 2015, our NLA stood at 163.911 m2

2012 2013 2014 2015

Net Leasable Area (m2) 118,199 139,811 163,757 163,911

Leased area (m2) 105,657 135,311 154,623 159,318

Occupancy Rate (%) 89% 97% 94% 97%

(Rp bn) 2012 2013 2014 2015

Unilever Mega DC 50.6 88.3 82.9 85.97

Li & Fung - 6.8 16.2 13,95

Intirub Business Park 11.5 24.4 42.8 60.93

Selayar - - - 2.64

Total revenue 62.1 119.5 141.9 163.49

21

118,199

139,811

163,757 163,911

89%

97%94%

97%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

-

50,000

100,000

150,000

200,000

250,000

2012 2013 2014 2015

Net Leasable Area (m2) Occupancy Rate

50.59

88.29 82.95 85.97 -

6.75 16.21 13.95

11.47

24.44

42.76

60.93

2012 2013 2014 2015

Unilever Li & Fung Intirub Business Park Selayar

141.9

163.49

62.1

119.5

CAGR 62.3%


Summary of profit and loss comprehensive

Summary of profit and loss comprehensive

Aside from recurring income from leasing its own logistic properties, MMP also has recurring value creation from recognition over increase in fair

value of investment properties. Each investment properties that have been completed will be measured at fair value.

(Rp bn) 2012 2013 2014 2015

Revenues 62.1 119.5 141.9 163.5

Operating profit 48.8 105.6 114.3 121.7

Interest expenses (16.3) (36.1) (43.9) (51.8)

Forex loss - net (22.0) (117.7) (15.2) (28.9)

Changes in fair value of PII 357.5 222.4 261.1 64.8

Profit before tax 372.3 174.2 309.4 131.0

Income tax (6.3) (12.2) (14.2) (16.3)

Comprehensive profit and loss 313.9 90.5 286.4 114.4

Appraised value of Investment properties per 31 Desember

2015 1(Rp miliar)

Unilever 857.46

Li & Fung 170.08

Selayar 45.54

Landbank 424.9

Intirub Business Park 570.03

Total investment properties 2,068

Note:

1) Appraised value from KJPP Stefanus Tonny Hardi & Rekan

Asset yield

22

357.5

222.4261.1

64.8

62.1

119.5

141.9

163.5

2012 2013 2014 2015

IDR

Bn

Increase in fair value of investments properties Rental Revenue

Component of recurring value creation

495.6

686.5 764.3

833.3 12.5%

17.4%18.6%

19.6%

9.9%

15.4% 14.9% 14.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

(100.0)

100.0

300.0

500.0

700.0

900.0

1,100.0

1,300.0

1,500.0

2012 2013 2014 2015

(%)

Average outstanding investment property at investment cost

Rental revenue / investment cost

Operating profit / investment cost


Summary of financial position

Summary of financial position Asset and capital structure

Investment properties that is measured in the fair value is the largest component of asset in the summary of financial position of MMP. From

liability side, MMP is currently sourcing its financing from the equity, debt and bank loan. With strong value creation from investment properties,

MMP could achieve conservative leverage with debt to equity ratio of 0.4x at the end of 2014.

(Rp bn) 2012 2013 2014 2015

Cash and cash

equivalent6.3 6.4 11.3 383.0

Current asset 88.7 88.9 82.4 518.8

Investment properties 1,409.2 1,748.6 2,037.2 2,388

Non current asset 1,411.5 1,751.1 2,056.1 2,685

Total asset 1,500.1 1,840.0 2,138.5 3,204

Short term liabilities 465.3 604.4 136.6 175.5

Long term liabilities 329.0 367.8 554.4 477.8

Debt 397.4 562.5 597.4 587.44

Total liabilities 794.3 972.2 691.0 653.3

Paid in capital 75.0 75.0 400.0 571.4

Retained earnings 439.1 529.6 816.0 891.57

Total equity 705.8 868.2 1,447.5 2,551

23

1,409

1,749

2,037

2,388

391 556 586

204

706 868

1,448

2,551

0.6x

0.6x

0.4x

0.1x

-0.1x

0.0x

0.1x

0.2x

0.3x

0.4x

0.5x

0.6x

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2012 2013 2014 2015

(x)

IDR

Bn

Investment Properties Debt-to-Equity Equity Debt-to-Equity


Summary of financial position

Revenues, Rp bn EBITDA, Rp bn

Equity, Rp bn Capital Expenditure, Rp bn

24

2012 2013 2014 2015

706868

1.445

2.548

2012 2013 2014 2015

49

106115

123

2012 2013 2014 2015

62

119

142

16351.3%52.8%

2012 2013 2014 2015

1,035

283

233

287


Key performance matrix

25

2012 2013 2014 2015 %CAGR %YoY

Operational metric

Net Leasable Area, m2

Built to suit 90,288 111,900 111,900 111,900 11% 0%

Multi tenants 27,911 27,911 51,857 52,011 37% 0%

Total, m2 118,199 139,811 163,757 163,911 18% 4%

Occupancy rate, %

Built to suit 100% 100% 98% 97% - -

Multi tenants 55% 84% 87% 98% - -

Average occupancy rate, % 89% 97% 94% 97% - -

Average remaining lease term, years 10.0 7.5 6.5 6.0 - -

Revenue by segment

Revenue, Rp bn

Rental built to suit 50,594 94,931 99,160 99,922 41% 1%

Rental multi tenants 11,472 24,555 42,758 63,570 135% 51%

Total revenues, Rp bn 62,066 119,486 141,918 163,492 62% 15%

Profitability

Operating Profit (EBIT), Rp bn

Built to suit 39,365 81,881 83,514 77,544 - -

Multi tenants 9,476 23,721 30,736 44,134 - -

Total EBIT, Rp bn 48,840 105,601 114,251 121,678 70% 8%

EBIT margin, % 79% 88% 81% 75% -

EBITDA, Rp bn 49,296 106,267 115,063 122,852 70% 8%

% margin 79% 89% 81% 75% - -

Interest expense, Rp bn -16,049 -35,991 -42,818 -51,843 38,886 12%

Forex loss nett, Rp bn -21,987 -117,712 -15,201 -32,018 46,465 691%

Profit before tax, Rp bn 372,338 174,187 309,395 131,003 22,446 -41%


50,594

94,931 99,160 99,922 11,472

24,555 42,758

63,570

10,000

30,000

50,000

70,000

90,000

110,000

130,000

150,000

170,000

190,000

2012 2013 2014 2015

Built to Suit Multi Tenants

Built to suit (% of total revenue) 81% 79% 69% 61%

Revenues breakdown

Built to suit warehouses account for two third of total revenues

Revenues breakdown

26

Net leasable composition area

As of 31 Dec 2015

Revenue

IDR Bn

119.486

141.918163.492

62.066


Section 6

Growth Strategy


1

2

3

Constructing new logistics properties in strategic location

Focus in built to suit property logistic

Continue to improve operating efficiency

Our growth strategies

27


Constructing logistic properties with international standard1

Warehouse Site identifiedLand acquired

(downpayment)

Construction permits

securedEstimate opening

Site 1 √ √ √ 4Q 2016-Q1 2017

Site 2 √ √ - 1Q 2017

Site 3 √ √ - 3Q 2017

Site 4 √ √ - 4Q 2017

Site 5 √ √ - 4Q 2017

Site 6 √ √ - 1Q 2018

Strategic location

Target yield 9 – 11%

Has secured tenants

Payback periods 8 years

Penetration outside greater Jakarta to other big cities in

Indonesia such as Surabaya, Kalimantan etc.

Targeting Top 5 Companies in different sectors :

(Consumer, Logistic, Manufactures, E-commerce, Trading)

Development criteria Strategic business

28


Focus in built to suit warehouse2

Facts

MMP has track record to complete complex construction

Our capabilities to build high specification warehouses:

- Superflat floors

- Double decker warehouse

Increase Profitability

Increase Recuring Revenue

Results in higher margin since majority of

the expenses bear by tenant

Increase our brand name

Investing in human capital (marketing team, which shall ensure that our growth strategy will continue to be in placed)

Improve our building management service

Offer our potential clients with value engineering ( offer alternative design & construction to improve client’s optimization and

efficiency )

Develop innovative & high quality ( ex: Green Building Concept)

Improve relationship with existing tenants

High demand from manufacturers company,

eCommerce to built warehouse for their company

Revenues breakdown

29


Continue to improve operating efficiency3

Investing in operating system to release some of the

operational bottleneck and to improve our productivity

Implement a unified database for storage of tenant

records and other information to reduce costs and

improve efficiency

Increase scale of NLA Warehouse will allow us to achieve

economies of scale

Gain greater bargaining power in procurement process

Invest in marketing team

Integrated IT platform Reducing cost

Outsourcing to support our services including cleaning service,

parking etc.

Standardize warehouse specifications to shorten the building

process

Benchmarking our construction cost with other industry

players

Effective tender process to determine the most effective

contractors

Quarterly review of budgeting to ensure that costs are

aligned with the proposed budget

Invest in high quality people to manage estates and to

increase productivity

Management focus Economies of scale

30


Section 7

Industry


Growing market to support logistic industry

ASEAN continues to be the focus for multinational companies to grow and Indonesia is one of the countries prioritized in the region. Demand for

supporting infrastructure including logistic properties is expected to grow along with the increase in investment.

% of respondent that indicate country to be prioritized in their future business

expansion

Source: ASEAN Business Outlook Survey 2015

135

155

0

40

80

120

160

200

2013 2014

USD bn

Growth in Indonesia’s logistic industry

Source: Frost & Sullivan

Frost & Sullivan estimated 14,7% growth in the logistic industry in Indonesia for

2014 helped by growth in service sector and increase in household consumption

Domestic business tends to shift key aspect of supply chain management and

distribution to provider of logistic services, particularly FMCG, electronic and

petrochemical.

31

41%

37%35%

32%30%

28%

21%

18% 18%

13%

7%

Indo

nesia

Vie

tna

m

Mya

nm

ar

Ma

laysia

Th

aila

nd

Fili

pin

a

Ka

mb

oja

Sin

ga

pura

Tid

ak a

da

Lao

s

Bru

ne

i

Indonesia becomes main target for business development in ASEAN

Track record in the strong growth in the logistic industry in Indonesia

E E


High growth, large domestic market

Low growth, small domestic

market

Low growth, small domestic market

Low growth, large domestic market

Indonesia

Singapura

Filipina

Thailand

Malaysia

Jepang

Australia

Vietnam

Myanmar

0

50

100

150

200

250

300

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

Popula

tio

n (m

n)

Rata-rata estimasi pertumbuhan PDB riil 2012-2016F

Indonesia continues to be an attractive target for FDI

32

184 187 183 235 252 283 283 280 321372 400

477234 268 253

292 325 357 391 386 405 432 464 505623

740 697

882

1,040 990 974 988 1,010 1,0301,080 1,130

273 351399

450539

617692

771

862961

1,0601,170

0

200

400

600

800

1,000

1,200

1,400

2007 2008 2009 2010 2011 2012 2013 2014F

2015F

2016F

2017F

2018F

Indonesia Thailand Brazil China

Competitive wages and large domestic market makes Indonesia to be an attractive target for FDI in ASEAN

Source: EIU, International Labour Organisation, IMA Asia

Ave

rag

e m

on

thly

wag

es

(USD

)

Source: EIU, Euromonitor

0%

20%

40%

60%

80%

100%

1990 2000 2010 2015

% h

ousehold

s b

ased o

n in

com

e

level

<5K USD 5K - 10K USD 10K-15K USD >15K USD

Rising middle class income

Retail sales increase in 1Q 2014 supported by election, higher minimum

wages in 2013, and good harvest.

Retail sales in Q1 2014 increased 20% from previous year for food and

beverages, household equipment and clothing.

Although there are concerns that increase in minimum wages will reduce

Indonesia’s attractiveness for FDI, average minimum wages in Indonesia

is expected to be more competitive that in Thailand and China.

Resilient economy growth and large domestic market are expected to boost investment in Indonesia

Increase in minimum wages helps boost consumption in Indonesia, while average minimum wages in Indonesia continue to be competitive compared to Thailand and China


0

50

100

150

200

250

2011 2012 2013 2014

Bekasi Bogor Tangerang

Karawang Serang Rata-rata

Investment support increases in industry property

Demand for industrial estate increase along with the growth in FDI and domestic investment. Such has elevated the increase in land prices which

inevitably forces companies to allocate their capital efficiently towards productive assets and let third parties to handle supporting activities including

logistics.

Source: Colliers International

(USD/m2) 2011 2012 2013 2014% CAGR

(2011-2014)

Bekasi 123 184 215 223 22%

Bogor 107 127 220 174 18%

Tangerang 111 123 126 159 13%

Karawang 83 136 177 185 31%

Serang 78 101 130 133 19%

Average 100 134 174 175 20%

33

Source: Bank Indonesia, Colliers

3.0

3.4

3.0

4.5

5.3

5.0

3.5

5.4

4.5

3.2

5.8

5.6

3.8

4.6

5.9

4.6

5.1

4.9

7.6

4.7

1Q

2010

2Q

2010

3Q

2010

4Q

2010

1Q

2011

2Q

2011

3Q

2011

4Q

2011

1Q

2012

2Q

2012

3Q

2012

4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013

1Q

2014

2Q

2014

3Q

2014

4Q

2014

(US

D m

n)

Foreign Direct Investment Land price (USD/m2)


Asia logistics, industrial yields and rentals

Asia logistics / industrial yields by key centres Asia logistics / industrial rentals by key markets

0%

2%

4%

6%

8%

10%

12%

India China Japan Singapore Hongkong

Yie

ld (

%p

er

an

nu

m)

Yield (%p.a) Risk - free Rates


5% 5%

0%

5%

4%

10%

3%

0%

2%

4%

6%

8%

10%

12%

0

5

10

15

20

25

HongkongSingapore Tokyo Delhi Shanghai Beijing Guangzhou

Rental, US$ per sq ft p.a. (LHS) Forecast growth, % YoY


Due to the sustained flow of investments into Asia, and the region’s subdued inflationary environment, risk-free rates have consistently fallen. The

logistics and industrial property yield spread compared to these risk-free rates narrowed up to 1Q 2013. However, the spread widened in Japan.

In China, long-term real estate funds have been eyeing opportunities for modern warehousing facilities for long-term growth in both the first and

second-tier cities. Investment yields for quality logistics premises in China currently range from 6 to 8% per annum.

The normal rental rate in China is around US$6-7 per sq. ft. per annum; and in most Chinese cities, they are expected to increase in the order of

3-5% per annum, thanks to the sustained growth of industrial production, cargo throughput volume and local retail sales. Beijing is going to deliver

an exceptional performance, primarily due to the accelerating expansion of its third-party logistics (3PL) companies and e-commerce sector.

34


Asia Logistics / Industrial Rental

Capitalization rates for logistic properties in Asia

The average industrial capitalization rate in Asia fell to

an all-time low of 5.8% in 2Q 2012; but edged up again

to 7.1% in 1Q 2013, according to statistics provided by

RCA.

The increase in cap rates reflected growing uncertainty

in the traditional warehousing sector about the

sovereign debt problems in the Eurozone, which had

still not been fully resolved.

However, strong demand continues for quality logistics

warehouses and distribution facilities, particularly those

supported by seasoned managers, and the average

capitalization rates have been compressed.

35


Riding along with the growing E-commerce

Increasing middle class income has helped E-commerce sectors growing at 42% CAGR 2012-15

195 180 145

170

45 85 135 110

2010 2020 2030 2030

Below Global Consuming Class Global Consuming Class

(5-6% GDP Scenario) (7% GDP Scenario)

Source : BPS, Bappenas, UNPP, Mckinsey

Estimated B2C eCommerce sales by country 2013 – 2016 (in USD billion)

2013 2014 2015E 2016E

China 181.6 274.6 358.6 439.7

Japan 118.6 127.1 135.5 143.1

Korea Selatan 18.5 20.2 21.9 23.7

India 16.3 20.7 25.7 30.3

Indonesia 1.8 2.6 3.6 4.9

EEE

Source : BPS, Bappenas, UNPP, Mckinsey

36


Investment Consideration

Section 8


First mover in provider of modern logistic property

Investment consideration

1

Provider of high quality logistic property2

Portfolio of assets that provide stable and recurring cash flow 3

Proven track record in land acquisition and delivery4

Strategically located logistic property in Indonesia5

Strong exposure to consumer sector that has high potential growth6

37


Section 9

Appendix 1


Audited Balance Sheet

Year to Dec 31, Rp mn 2012 2013 2014 2015 % YoY

Cash and Equivalents 6,309 6,368 11,311 382,973 3286%

Trade receivables 381 10,457 13,714 8,775 -36%

Other current assets 81,964 72,054 57,381 127,100 122%

Property & equipment 1,262 1,236 2,107 13,483 540%

Investment properties 1,409,229 1,748,426 2,036,806 2,388,400 17%

Other non-current assets 962 1,469 17,183 283,589.46 1550%

Total assets 1,500,107 1,840,010 2,138,502 3,204,321 50%

Trade payable 178,435 25,081 26,574 12,646 -52%

Unearned revenue 70,345 23,932 23,528 25,281 8%

Bank loans - short term 70,381 181,547 35,636 124,911,250 251%

Other current liabilities 146,123 373,842 50,859 12,630 -75%

Bank loan 325,859 360,440 541,288 460,646 -15%

Customer deposits - 3,665 7,845 11,353 45%

Other long term liabilities 3,149 3,259 4,917 5,826 19%

Total Liabilities 794,291 971,766 690,647 653,294 -5%

Minority interest - - 2,673 2,916 9%

Equity 705,815 868,242 1,445,182 2,548,111 76%38


Audited Profit and Loss

Year to Dec 31, Rp mn 2012 2013 2014 2015 % YoY

Revenue 62,066 119,486 141,918 163,492 15%

Cost of revenue 3,886 5,940 13,084 16,059 23%

Gross profit 58,180 113,546 128,834 147,432 14%

G&A 9,340 7,944 14,616 25,754 76%

Operating profit 48,840 105,602 114,218 121,677 7%

EBITDA 49,296 106,268 115,031 122,852 7%

Net interest income (expense) -16,049 -35,991 -42,818 -23,640 -81%

Increase in fair value Invt Prop 357,511 222,424 261,127 64,787 -303%

Other items -17,964 -117,848 -23,165 31,822 37%

Profit before tax 372,338 174,187 309,363 131,003 -136%

Tax -6,298 -12,201 -14,192 -16,349 -15%

Proforma adjustment -52,110 -71,454 -8,482 - -100.0%

Net income 313,930 90,532 286,404 114,415 -60,1%

Core income -21,593 -14,180 40,479 78,567 94,1%

39


Audited Cashflow

Rp mn 2014 2015 %Change

Cash flow from operating activities

Cash Receipt from Customer 154,744 191,312 24%

Interest Received 1,046 26,529 2437%

Cash Paid for Operating Expenses and Employees (12,981) (23,484) 81%

Payment to Supplier and Others (14,667) (51,923) 254%

Tax paid (13,208) (16,009) 21%

Interest paid (44,620) (50,840) 14%

Net cash provided by operating activities 70,315 75,586 7%

Cash flow from investing activities

Acquisition of Investment Properties 56,776 - -100%

Acquisition of Property and Equipment (93,660) (311,999) 233%

Advance for Purchase of property & equipment (14,850) (264,950) 1684%

Advances for Purchase Asset - (914)

Loan Receivables (56,408)

Acquisition of shares of subsidiary (40,469) -

Net Cash Used in Investing Activities (92,202) (634,271) 588%

Cash flow from financing activities

Loan Receipts from Related Parties 161,689 1,508 -99%

Payment to Related Parties (218,567) (17,826) -92%

Loan Receipts from Bank 235,210 14,957 -94%

Payment to Bank Loan (202,541) (55,985) -72%

Payment of consumer Financing Liabilities (1,188) (646) -46%

Paid-up capital stock non controlling 4

Receipt from Paid in Capital 55,000 987,702 1696%

Net Cash provided by Financing Activities 29,602 929,714 3044%

Changes in cash and cash equivalent 7,715 371,029 4709%

Effect of forex (2,772) 632 -123%

Beginning balance 6,368 11,311 78%

Ending balance 11,311 382,973 3784% 40


End of presentation

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