PT Link Net Tbk Investors Presentation Version Q1 2015 Disclaimer - - PowerPoint PPT Presentation

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PT Link Net Tbk Investors Presentation Version Q1 2015 Disclaimer - - PowerPoint PPT Presentation

PT Link Net Tbk Investors Presentation Version Q1 2015 Disclaimer THE INFORMATION CONTAINED IN THESE MATERIALS IS STRICTLY CONFIDENTIAL AND MAY NOT BE FORWARDED, PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON (WHETHER


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PT Link Net Tbk

Investors Presentation Version Q1 2015

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Disclaimer

THE INFORMATION CONTAINED IN THESE MATERIALS IS STRICTLY CONFIDENTIAL AND MAY NOT BE FORWARDED, PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON (WHETHER WITHIN OR OUTSIDE YOUR ORGANIZATION/FIRM) FOR ANY PURPOSE AND MAY NOT BE REPRODUCED IN ANY MANNER WHATSOEVER. ANY FORWARDING, PUBLICATION, DISTRIBUTION OR REPRODUCTION OF THESE MATERIALS IN WHOLE OR IN PART IS UNAUTHORIZED. IMPORTANT: You must read the following before continuing. In accessing the attached summary information presentation (this “presentation”), you are agree to be bound by the following terms and conditions. Confirmation of Your Representation: These materials and their contents may not be viewed by persons within Canada, Japan, the People’s Republic of China (excluding the Hong Kong Special Administrative Region) or by persons in the United

  • States. By attending or accessing this presentation, you represent that you are outside the United States, Canada, Japan, or the People’s Republic of China (excluding the Hong Kong Special Administration Region).

Neither these materials nor any of their contents may be disclosed or distributed or used for any other purpose without the prior written consent of PT Link Net Tbk (the “Company”). All information herein should be regarded as indicative, preliminary and for illustrative purposes only. Such information reflects prevailing conditions as of the date of this presentation, all of which is subject to change. The Company does not make any representation or warranty (express or implied) or accepts any responsibility or liability for the accuracy or completeness of these materials or any or all of the information in these materials or otherwise made

  • available. Accordingly, none of the Company or any other person shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in these materials, and any such liability is

expressly disclaimed. Nothing contained herein or therein is, or shall be relied upon as a promise, representation or warranty, whether as to the past or the future. You and your Representatives (pursuant to the definition of Law No. 8 of 1995 on Capital Markets (the “Capital Market Laws”)) acknowledge that, in connection with your and their obtainment of this presentation, it is illegal under the Capital Market Laws for any person who has received non-public material information to deal in securities in violation of the Capital Market Laws or to communicate that information to any other person under circumstances in which it is foreseeable that such person is likely to deal in such securities in violation of applicable Indonesian laws. This presentation contains “forward-looking statements”, which are based on current expectations and projections about future events, and include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “plans”, “could”, “should”, “predicts”, “projects”, “estimates”, “foresees” or similar expressions or the negative thereof, as well as predictions, projections and forecasts of the economy or economic trends of the markets, which are not necessarily indicative of the future or likely performance of the Company, and projections and forecasts of their performance, which are not guaranteed. Such forward-looking statements, as well as those included in any other material discussed at the presentation or in these materials, concern future circumstances and results and involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause their actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions and estimates regarding the Company’s present and future business strategies, including expansion plans, dividend policy, and the environment in which they will operate in the future. Forward-looking statements are not guarantees of future performance. These forward-looking statements speak only as at the date of this presentation, and none of the Company or any of

  • ur respective directors, officers, employees, agents, affiliates, advisers or representatives intends or has any obligation or undertakes to supplement, amend, update or revise any forward-looking statements as a result of new information or to

reflect future events or circumstances, except as required under applicable laws. This presentation includes certain forecasts and projections. By their nature, forecast and projected financial information address a hypothetical situation, and therefore do not represent the actual financial position or results of the Company had the transactions described therein been completed at the dates assumed or any other date, or in the future and should not be regarded as an indication of the operating results generated by the Company or of the future financial position of the

  • Company. Given the abovementioned risks, uncertainties and assumptions, you should not place undue reliance on these forecast and projected financial information. Past performance is not necessarily indicative of future performance.

This presentation contains certain non-GAAP measures, including Adjusted EBITDA and EBITDA, that are not audited, not included in the Company's audited financial statements and not presented in accordance with Indonesian Financial Accounting Standards. The measures have been used by management as a supplemental measure of the Company’s performance. Although these measures are either contained in or fully reconcilable to line items on the Company's audited financial statements and/or based on management accounts, they may not be equivalent to similarly named measures used by other companies, and should not be considered as a measure comparable to income statement items for the year in the financial statements. This presentation also contains certain statistical data and analyses (the “Statistical Information”) which have been prepared in reliance upon information furnished by the Company and/or third party sources for which the Company has either

  • btained or is in the process of obtaining the necessary consents for use. Numerous assumptions were used in preparing the Statistical Information, which assumptions may or may not appear herein. As such, no assurance can be given as to

the Statistical Information’s accuracy, appropriateness or completeness in any particular context, nor as to whether the Statistical Information and/or the assumptions upon which they are based reflect present market conditions or future market

  • performance. Moreover, any information from third party sources contained in this presentation may not be used or relied upon by any other party, or for any other purpose, and may not, directly or indirectly, be reproduced, disseminated or

quoted without the prior written consent of such third party. Statistical Information provided by PT Nielsen Audience Management (“Nielsen”) is about demographic trends and not product performance and is aimed at Nielsen clients in the media

  • space. Such information/data reflects estimates of market conditions based on samples, and is prepared primarily as a marketing research tool for media companies, advertising agencies and advertisers. Nielsen’s Consumer Confidence

information/data measures consumer sentiment and confidence in the future of the economy, expenditure and saving patterns and major concerns. Such information/data reflects the optimism of consumers of the overall economic condition which includes future job prospects, and the indication of how consumers will spend and save their money in the next 12 months. This information/data is for general information and research purposes only and should not be viewed as a basis for investments. Any references to Nielsen should not be considered as Nielsen’s opinion or endorsement as to the value of any security or the advisability of investing in the Company This presentation does not purport to be a complete description of the terms of or the risks inherent in any actual or proposed transaction described herein. You should not construe any statements and/or information made in this presentation as tax or legal advice. The recipient of this presentation must conduct its own investigation and analysis of the proposed transaction and the information and data contained in this presentation and in connection with the proposed transaction should you proceed. No information set out in this presentation will form the basis of any contract. In furnishing these materials, none of the Company or any other person undertakes any obligation and/or liability to provide any additional information, to update these materials or to correct any inaccuracies or incompleteness which may become apparent. This presentation does not constitute or form part of and should not be construed as an offer to sell or the solicitation of an offer to buy securities in any jurisdiction in which such offer or sale would be restricted, prohibited or unlawful. ANY FORWARDING, DISTRIBUTION OR REPRODUCTION OF THIS PRESENTATION ELECTRONICALLY OR OTHERWISE, IN WHOLE OR IN PART, TO ANY OTHER PERSON IS UNAUTHORIZED. FAILURE TO COMPLY WITH THIS PARAGRAPH MAY RESULT IN A VIOLATION OF THE SECURITIES ACT, THE CAPITAL MARKETS LAW OR THE APPLICABLE LAWS OF OTHER JURISDICTIONS. IF THIS PRESENTATION HAS BEEN RECEIVED IN ERROR, IT MUST BE DELETED IMMEDIATELY.

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PROPERTY & REAL ESTATE HEALTH CARE RETAIL & STORES SHOPPING MALLS HOTELS & RESORTS UNIVERSITY & SCHOOLS

TMT

BANKING & FINANCE

49 Malls 350 Stores 14 Hospitals

TMT in Lippo

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Lippo TMT Current Business Units

Data Center Electronic Payment IT & BP Outsourcing System Integrator Content Production Online Media Cable TV & Satellite TV Printed Media Broadband Internet Fiber Optic Network 4G Network Satellites Operators Document Management Cinema In Building Services

TECHNOLOGY TELECOM MEDIA

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Fixed Broadband and Pay TV Penetration – A large and underpenetrated market

(a) Based on 2013, Source: Media Partners Asia (b) 2013 – 18 CAGR, Source: Media Partners Asia and BMI (c) Based on 2013, Source: Media Partners Asia (d) Based on 2013, Source: Nielsen (e) Growth from 2010 to 2030, Source: McKinsey Global Institute (f) Based on 2010, Source: McKinsey Global Institute (g) By 2030, Source: McKinsey Global Institute (h) 2013-18 CAGR, Source: Media Partners Asia Source: World Bank, Media Partners Asia, McKinsey Global Institute

Indonesia today… …with a highly compelling macro story

248 million people(a) 4th largest by population country(c) in the world 54% of Indonesians under 30 years of age(a)

One of the youngest(c) populations in the world

5.8% real GDP growth rate(b)

One of the fastest growing economies in the world(b) Consumption contribute to 59%(d) of GDP Consumer class to grow by 90 million(e)

53%(f) urban population contributed to 74%(f) of

GDP

71%(g) urban population to contribute 86%(g)

  • f GDP

5.4% fixed broadband penetration rate(c) Highest fixed broadband growth

  • f 13.4% CAGR(h) in the world

8.6% pay TV penetration rate(c) Fast Pay TV growth of 16% CAGR(h)

Indonesia is a large and attractive cable market with faster growth in larger cities

Large population base Young population High GDP growth GAGR Under-penetrated broadband Under-penetrated pay TV Consumption driven economy Urbanization with GDP concentration in cities

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1.789 3.013 5.437 193 340 860 2011 2013 2018

  • No. of subscribers ('000s)

ADSL Cable 3 Mbps 100 Mbps

speedy linkNet

Link Net is undisputed leader in Next Generation broadband in Indonesia

Large and fast growing market illustrates strong demand…

…and Link Net having the highest number of cumulative homes passed and subscribers

% ADSL subscribers

  • f total

90% 90% 86%

Speed offered

(a) Based on number of subscribers as of 31 December 2013. Link Net homes passed is as of 31 December 2014 Source: Media Partners Asia and Company data

  • Operational challenges leading to significant delay

s

  • SOE on nationwide broadband access versus Link Net's focus

areas and demographics

  • Potential cannibalization of ADSL
  • Limited rollout track record and significantly lower scale
  • High natural barriers to entry in LN's existing areas

…in an industry with only 2 key broadband players…

Market share(a)

(1.4million homes passed) (0.2million homes passed)

Even if competitors can roll out as fast as Link Net, we believe it will take them up to six years to reach where Link Net is TODAY

No other residential NGBB network of scale

2013-18 CAGR

20.4% 12.5%

98% 2%

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  • PT. Link Net Tbk. Key milestones

Network ownership under First Media Network ownership under Link Net

506

655 933

1,194

1,433 1999 2000 2007 – 2008 2011 2013 2014

2010 Dec 2011 2012 2013 2014

1999 Launch of Cable TV services 2000 Launch of Internet services 2002 Sole provider to IDX of remote trading network 2014

  • Fully marketed secondary

placement (Oct) Post transaction shareholding (Dec)

  • First Media:

33.8%

  • CVC:

33.5%

  • Public:

32.7% Jun 2011

  • CVC invested in Link Net
  • Link Net acquired certain

network and related assets from First Media

2002

2007 – 2008 Launch of broadband services and bundled packages

Number of homes passed (‘000)

2010 Launch of HD

553

Jun 2011

2013

  • 1 million homes passed
  • Expanded network to

Greater Surabaya and Bandung

  • First to offer 100 Mbps to

the residential sector

2010

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(a) Based on 2013 Media Partners Asia data (b) HFC stands for Hybrid Fiber-Coaxial (c) Greater Jakarta (Jabodetabek includes: Jakarta DKI, Bogor, Depok, Tangerang, Bekasi). Greater Surabaya (Gerbangkertasusila includes: Gresik, Bangkalan, Mojokerto, Surabaya, Sidoarjo, Lamongan) (d) As at 31 March 2015 (e) RGUs refers to Revenue Generating Units throughout the Information Memorandum (f) Others principally include revenue from installation charges, sales of cable modems and promotional items (g) Converted to using an exchange rate of US$1:IDR13,000 (h) Adjusted EBITDA is a non-GAAP measure and is defined as the Company’s profit for the year before finance costs, finance income, share of loss in associate, income tax expenses, depreciation and amortisation and is adjusted by adding back certain non- recurring expenses to the Company’s profit for the year

Link Net – The Gateway to the Indonesian Consumer Homes

~98% market share(a) for Next Generation broadband (“NGBB”) in Indonesia Technological leader in Indonesia, operating the only NGBB network of scale w/ newly-upgraded 870MHz HFC(b) and

DOCSIS 3.0 enabled network Focus on large and fast-growing affluent core households in the most important metropolitan cities – Greater Jakarta, Greater Surabaya and Bandung(c)

Strong growth trajectory with revenue CAGR of 28% over 2012–14 Strong enterprise offering, with 1,484(d) enterprise customers and serving IDX as a flagship customer since 2002

Large residential consumer base of ~784k RGUs(e) and ~Close to 1.5m homes passed Pioneering innovation through providing reliable, NGBB bundled with rich and differentiated TV entertainment

~ 94% bundled

Source: Company data, Nielsen Consumer and Media View, Media Partners Asia

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Link Net is the only NGBB player of scale in Indonesia

Greater Jakarta

  • Addressable households(a): 3,347k
  • Homes passed: ~1.2m
  • Estimated coverage ratio(b): ~45%
  • Cable length: ~17,800km

Bandung

  • Addressable households(a): 238k
  • Homes passed: ~48k
  • Estimated coverage ratio(b): ~10%
  • Cable length: ~500km

Greater Surabaya

  • Addressable households(a): 474k
  • Homes passed: ~222k
  • Estimated coverage ratio(b): ~45%
  • Cable length: ~2,000km

Bali

  • Cable length: ~100km
  • Focus on hotels

Hubs: 20 Total homes passed: 1,489k Total cable length: 20,308km

(a) Based on addressable market of AB SES households as defined by Nielsen (2013 definition of SES classification) (b) Based on Company’s estimated coverage of areas that the Company believes are addressable and commercially feasible for network buildout Source: Company data (As of December 2014), World bank, Media Partners Asia

Link Net is operating in the most attractive metropolitan areas of Indonesia

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11 15.211 14.386 9.425 130 Jakarta Bandung Surabaya Indonesia 117 107 99 31 Jakarta East Java West Java Rest of Indonesia

(a) Key cities in East Java include Gresik, Bangkalan, Mojokerto, Surabaya, Sidoarjo, Lamongan and West Java includes Bandung (b) Rest of Indonesia figure is the average of the remaining top 12 provinces as per BPS excluding Jakarta, East Java and West Java Source: Media Partners Asia, Biro Pusat Statistik (BPS), Nielsen and Company data

Targeting in most attractive metropolitan areas...

Operating in provinces with high GDP in Indonesia Operating in cities with high population density in Indonesia

% of national GDP

13% 12% 11% 4%

Total population (millions)

10.1 2.5 3.1 248

(b) (a) (a)

Addressable market for Link Net

Per km2 in 2013 2013 GDP (US$ bn)

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E E D D C2 C2 C1 C1 B B A2 A2 A1 A1 2010 2013E Axis title

...and most attractive demographics & fastest growing segment market

Link Net’s target market A1 >4,500 A2 3,000 – 4,500 B 2,000 – 3,000 C1 1,500 – 2,000 C2 1,000 – 1,500 D 700 – 1,000 E < 700 Households in Link Net's operating cities(a)

(a) Cities include Jakarta, Surabaya and Bandung Source: Nielsen, assuming 4 pax per household

Affordable entry level packages also available for C1 segment customers AB Segments of the population growing the fastest 63% Unsatisfied demand for quality broadband and premium entertainment experience ABC1 growth driven by robust Indonesia macro fundamentals where lower income CDE hhs moving to affluent AB hhs

Monthly expenditure (IDR ‘000)

56

2.9% 6.3% 17.8% 23.2% 25.6% 16.9% 7.3% 6.4% 9.1% 28.6% 27.9% 19.1% 6.8% 2.2%

ABC1 50.2% AB 27% ABC1 72% AB 44%

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13

199 359 529 849 1.649 (US$15) (US$28) (US$41) (US$65) (US$127)

(a) US$1 : IDR13,000 exchange rate was assumed Source: Company data as of Feb 2015 All price is including CPE rental All price exclude 10% VAT

Profitability margins are similar across all packages from entry-level to most premium tier package

Catering to a large addressable market from a large C population to a fast growing AB segment D’Lite

  • Basic package offering

for subscribers with basic Internet and TV channel needs

Elite

  • Incremental add-on

packages which deliver faster Internet and more TV channel genres

Supreme

  • Package targeted for

consumers who are looking for full access to high speed Internet and all channels

Maxima

  • Designed for heavy

users of high speed internet who require full access to all channels

1 2 3 4

50 Mbps 160 channels 25 Mbps 160 channels 12 Mbps 130 channels 6 Mbps 106 channels (US$)(a) IDR ‘000

Family

  • Entry-level package
  • ffering for subscribers

with basic Internet and TV Channel needs 2 Mbps 87 channels

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With a wide range of packages catering to a large addressable market

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Examples of customer class areas

53

Premium Intermediate Entry level

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127.290 133.710 162,981 2012 2013 2014

Track record of price increases and repackaging

Successful upselling through focused marketing efforts

(a) 2013 Combo repackage (b) Increase over previous reference period (3Q2013 over 4Q2012 for 3Q2013), (1Q2014 over 3Q2013 for 1Q2014), and (1Q2015 over 3Q2014 for 1Q2015) Source: Company data

  • No. of upgrade transactions each year

4Q 2012 3Q 2013(a,b) 1Q 2014(b) 1Q 2015(b) Family

IDR 150,000 / mth

6.0% Increase 6.3% Increase 17.8% Increase D’lite

IDR 280,000 / mth

10.4% Increase 9.7% Increase 5.9% Increase Elite

IDR 390,000 / mth

10.0% Increase 9.3% Increase 12.8% Increase

Proven track record of package enhancements and upselling to drive ARPU growth

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16

Continuous Innovations to create Point of Difference to Entertainment & Broadband Experience

16

– please do up this slide for me. I’ve indicated what are the key things to highlight.

  • Maintain speed leadership

with launch of 200 Mbps across all cities

TV Anywhere service on First Media Go

Multi-Screen Interactive Experience with next generation cable OTT STB

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17

Key performance indicators show no sign of slowing down

Homes Passed (‘000) RGUs (‘000) ARPU (IDR ‘000) 1.194 1.433 1.489 Dec-13 Dec-142 Mar-15 333 392 407 304 363 377 637 755 784 Dec-13 Dec-142 Mar-15 Broadband Cable TV 203 216 225 151 186 188 2013 2014 3M 2015 Broadband Cable TV 402 412 355

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763 941 222 269 191 256 55 81 553 795 179 216 94 92 21 19 65 52 15 15 1.665 2.136 493 600 2013 2014 3M 2014 3M 2015 Broadband - residential Broadband - Enterprise Cable TV Advertising Others

1

Revenue growth trajectory continues

Revenue (IDR bn)

1 “Others” primarily includes revenue from installation charges, sales of cable modems and promotional items
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19

362 558 138 145

21.8% 26.1% 28.1% 24.2%

200% 220% 240% 260% 280% 300% 320% 340% 360% 380% 400%

  • 50

100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1.000

2013 2014 3M 2014 3M 2015

901 1.231 274 345

54,1% 57,6% 55,7% 57,6%

0% 10% 20% 30% 40% 50% 60%

  • 50

100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1.000 1.050 1.100 1.150 1.200 1.250 1.300 1.350 1.400 1.450 1.500

2013 2014 3M 2014 3M 2015

Healthy margins maintained amidst external pressures

Adjusted EBITDA (IDR bn) Net income (IDR bn)

Adjusted EBITDA and Net income margins

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20

397 168 229

Total Cash Total Debt Net Cash

Capex breakdown1 (IDR bn)

777 554 189 173 184 71 45 39 13

995 777 274

2013 2014 3M 2015

Network-related Capex CPE Capex Other Capex

1 Capital expenditure represents additions to property, plant and equipment (PPE) 2 Network-related capital expenditure is the sum of additions to head-end electronics and network service control points 3 CPE capital expenditure is the sum of additions to converters, decoders, cable modem and set-top boxes 4 Other capital expenditure is the sum of additions to land, buildings, leasehold improvements, furniture and fixtures, office equipment and vehicles 5 Total debt and cash position as of March 2015 6 Total debt includes vendor financing

2 3 4

Net Cash with large leverage capacity5 (IDR bn) Net Cash

6

Expansion plans on track on back of strong balance sheet

xxxxxxxxx

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Deep and experienced management team

  • Over 30 years of experience in CEO / MD / other leadership

positions at leading global and Indonesian technology companies including Microsoft, Motorola, PT Teknologi, Andalan Solusindo Pratama and PT Ander Cakra Buana Richard Kartawijaya, Chief Executive Officer

Complementary skills and expertise with strong domestic and international track record

(a) NRO stands for New Roll Out Source: Company data

  • Over 19 years of experience in finance industry
  • Previously worked in leadership roles in Corporate Finance within

Lippo companies for over 10 years

  • 19 years of experience in technology
  • Previously Vice President of Home Solutions and Architecture at

StarHub

  • 18 years of experience in operations and technology
  • Previously Director of PT First Media Tbk and Senior Vice President
  • f Operations and Technology at Citibank

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Surya Tatang, Chief Financial Officer Desmond Poon, Chief Technology Officer Iris Wee, Chief Marketing Officer

  • 24 years of experience in telecoms, media and marketing
  • Previously Vice President of Home Solutions and

Content at StarHub Dewi Dharma Yanti , Director of Corporate Resources

  • 18 years experience in business services including those at Citibank
  • Currently covering matters related to procurement and HR

Victor Indajang, Director of Operations Agus Setiono, NRO Director(a)

  • 28 years of experience in consumer and operations
  • Previously Vice President of Cards Marketing at Citibank

Clarissa Joesoep, Finance Director

  • Over 15 years experience in audit & consulting services, advertising

and media industries

  • Previously, CFO at PT Indonesia Media Televisi

Liryawati, Investor Relation Director

  • 20 years in FMCG, Electronics and Telco. Expertise in Marketing,

Sales and Retail

  • Previously, worked in Philip Morris, Coca-Cola, Samsung. Last

position as CMO to BOLT! 4G TD-LTE Operator Joseph Lembayung, Enterprise Director

  • 15 years in Information & Communication Technology – Sales,

Account, Project, Channel & Marketing in Carrier, Enterprise and Corporate & regional role

  • Previously Client Director IBM, Deputy Sales Director HUWEI. Last

position in Microsoft Indonesia in Media & Telecommunication

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Industry accolades achieved in 2014

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TOP BRAND AWARD 2014

Internet Service Provider Fixed

From Frontier Consulting Group & Marketing Magazine (2012–2014)

CORPORATE IMAGE AWARD 2014

Pay TV

From Frontier Consulting Group & Tempo Magazine (2012 & 2014)

CORPORATE IMAGE AWARD 2014

Internet Provider

From Frontier Consulting Group & Tempo Magazine (2014)

TOP TELCO 2014

Top Fixed Internet 2014

From Ikatan TI Indonesia & itech Magazine (2014)

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Net Promoter is both a loyalty measure and an organizational discipline that enables an organization to build a customer –centric brand experience that drives growth through building loyal advocates who will continue to use the brand and recommend it to others.

First Media – Link Net awarded Net Promoter Leader BOTH Pay TV & Broadband / Fixed ISP Category since 2011. 4X consecutive wins testament to

  • ur focus on quality and customer experience.

Our most recent achievement

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In Summary – FY 2014 and Q1 2015

Strong growth and profitability continues in 2014 and Q1 2015: FY 2014 Q1 2015

  • Revenue of

Rp2,136.0 billion up 28.3% Rp 599.9 billion up 21.8%

  • Adjusted EBITDA of

Rp1,230.7 billion up 36.6% Rp 345.4 billion up 26.0%

  • NPAT of

Rp557.9 billion up 54.0% Rp 145.2 billion up 4.9% Continued network expansion which at 31 March 2015 comprised:

  • Close to 1.5 million homes passed (additional of 238k in 2014 & 57K in Q1 2015)
  • 406,790 broadband RGUs, 377,404 cable TV RGUs

High bundling rate remains key competitive differentiator:

  • 94% of customers subscribed to both broadband and cable TV Services

Introduced new product enhancements & innovations in Q1 2015:

  • First Media Go (TV Anywhere)
  • New X1 Combo Packs (PVR, VOD and Catch Up TV features)
  • Enhanced existing Combo Packs (upgraded offerings)

Shareholding structure as of Q1 2015:

  • First Media
  • 33.82%
  • ALD
  • 33.45%
  • Public
  • 32.73%

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Expand network coverage into areas with attractive penetration potential ~ 200K to 240K per annum homes passed addition Increase penetration in existing coverage areas ~ Maintain blended 28% to 30% penetration rate overall ARPU growth around 5% to 5.5% per year Increase penetration of large and untapped enterprise market ~ maintain revenue CAGR 40% Grow advertising sales to monetize unutilised inventory

Our strategies to drive future growth

Enterprise

16% of

Revenue(a) Residential

81% of Revenue(a)

A B C D E

(a) Based upon FY2014 total revenues. The remaining FY2014 revenue is derived principally from installation charges, sales of cable modems and promotional items (b) Based on Company’s estimated coverage of areas that the Company believes are addressable and commercially feasible for network buildout (c) As of Dec 2013. Global peer average includes Numericable (35% - Including bulk subscribers which are individual subscribers under collective contracts per building), Charter(37% - % penetration of internet passings), Virgin Media(39%), Shaw Comm.(50% - Based on video % penetration of homes passed as of Nov 2013), Ziggo(63% - Ziggo and Telenet were originally cable TV providers connecting most households with analog TV), Cablevision(63%) and Telenet(72%)

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Appendix