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PT Mega Manunggal Property Tbk

PT Mega Manunggal Property Tbk

PT Mega Manunggal Property Tbk

PT Mega Manunggal Propert erty Tbk

Disclaimer

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• r sell any financial instruments or to participate in any particular trading strategy. No representation or warranty, either expressed or implied, is provided in

relation to the accuracy, completeness or reliability of the information contained in this document (‘the Information’), except with respect to Information concerning PT Mega Manunggal Property Tbk . The Information is not intended to be a complete statement or summary of the securities, markets or developments referred to in the document. PT Mega Manunggal Property Tbk does not undertake to update or keep current the Information. Any opinions expressed in this document may change without notice and may differ or be contrary to opinions expressed by other business areas or groups of PT Mega Manunggal Property Tbk. Any statements contained in this report attributed to a third party represent PT Mega Manunggal Property Tbk’s interpretation of the data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party.

PT Mega Manunggal Propert erty Tbk

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

PT Mega Manunggal Propert erty Tbk

Sectio ion 1

Brie ief f Pr Profi

• file

le of MMP

PT Mega Manunggal Propert erty Tbk

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 area total 163,911 sqm (including a 90,000 sqm NLA warehouse for PT Unilever Indonesia,

• ne
• f

the the largest Unilever warehouses globally)

Projects

Currently 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 largest E-commerce in Indonesia in Jalan Raya Bogor Depok.

• Facilities

Facilities of PT. Mega Manunggal Property Tbk are developed with specifications which are refer to international standards to meet the demand in the Indonesian logistics services business while keeping the specifications comply to local regulations. MMP is committed to give good quality products and deliver added value services to support the client’s business.

1

PT Mega Manunggal Propert erty Tbk

Brief profile of PT Mega Manunggal Property Tbk

MMP’s shareholder structure (as of March 2016)

2

PT Mega Manunggal Property Tbk

Unilever Mega DC Li & Fung Intirub Business Park I & II Selayar PT Mega Khatulistiwa Properti PT Mega Tridaya Properti

(67%)

PT Intirub

99,0% 99,5% 99,0% (33%)

GIC PT Subang Horison Properti PT Mega Dharma Properti PT Manunggal Persada Properti PT Subang Cakrawala Properti

99,5% 90,0% 99,0% 99,0%

PT Mega Manunggal Propert erty Tbk 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 The Nicholas Commissioner Abdul Rahim Tahir Independent Commissioner Debbie Ana Sumargo Independent Commissioner

3

PT Mega Manunggal Propert erty Tbk

Track record of MMP

2018

October 2010 Construction of Unilever Mega DC began

8-2010 3-2011 4-2012 5-2013 12-2011 10-2010 5-2013 10-2012 6-2014 2-2015 2018 1-2014 12-2014

2010 2011 2012 2013 2014 2015

Decemer 2011 DHL began its

• perational 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 December 2015 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) August 2015 Signing Lazada 4

PT Mega Manunggal Propert erty Tbk

Sectio ion 2

Re Review iew of MMP P Busin iness ess

PT Mega Manunggal Propert erty Tbk

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 Park Unilever Mega DC Li & Fung Selayar Lazada Distance to Jakarta 35 35 35 22 Distance to Tanjung Priok port 22 48 48 48 43 Distance to International Airport 39 68 68 68 60

PT Mega Manunggal Propert erty Tbk

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

PT Mega Manunggal Propert erty Tbk

Logistic property profile – Li & Fung

Location : M2100 industrial estates, West Cikarang, Bekasi Land area : 34.637 m2 Gross floor area : 21.702 m2 NLA : 21.612 m2 Lease period : 5 years, with option to extend for another 5 years Floor capacity : 6 ton per m2 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

PT Mega Manunggal Propert erty Tbk

Logistic property profile – Intirub Busines Park I & II

Intirub Business Park I Location : Halim, East Jakarta Land area : 28.195 m2 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

• ffice 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 Land area : 32.380 m2 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

• ffice and parking area

Special specifications : 10 loading dock levelers Tenants : Grundfos, DHL, ARK, MHE-Demag (warehouse), Grundfos, Deraya, MHE- Demag (office)

8

PT Mega Manunggal Propert erty Tbk

Property logistic profile – Selayar

9

Location : MM2100 industrial estates, West Cikarang, Bekasi Land area : 9.164 m2 Gross floor area : 5.742 m2 NLA : 5.620 m2 Floor capacity : 4 ton per m2 Ceiling height : 9 m (center 13 m) Special specifications : 6 loading doors with 2 loading dock levelers Tenants : Yusen Logistics Solution Indonesia

PT Mega Manunggal Propert erty Tbk

Building value delivering result

17

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

10 10

PT Mega Manunggal Propert erty Tbk

Property logistic profile – Lazada

Location : Tapos, Depok Land area : 90.180 m2 Gross floor area : +/- 62.000 m2 (phase 1 and phase 2) Lease period : 10 years, with option to extend for another 5 years Floor capacity : 4 ton per m2 Ceiling height : 12 m (center 16m) Tenant : LAZADA Specification:

• Flat floor;
• Parking Area & Basement Area
• Double Decker (stage 2)

11 11

PT Mega Manunggal Propert erty Tbk

Sectio ion 3

Investm estment ent Thesis is

PT Mega Manunggal Propert erty Tbk

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 DC Li & Fung Intirub Business Park Selayar 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 12m 24 x 18 and 32 x 18 Level single Single (multi racking) Single (multi racking) Multi Single Single (multi racking Flooring standar Super flat Super flat Flat Flat Flat

Warehouse specification Typical specification from high-performance logistic properties

1 2 3 3

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

• r more to accommodate

use of forklifts

MMP’s existing logistic properties surpass main criteria and specification for modern logistic properties. 9 12 12

PT Mega Manunggal Propert erty Tbk

2012 2013 2014 2015 3M16

Unilever IBP I L&F IBP II Selayar

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

(%) 90% 97% 94% Occupancy rate 97%

13 13

2012 2013 2014 2015 3M16

Unilever IBP I L&F IBP II Selayar

118,199 139,811 158,137 163,911 163,911 100%

PT Mega Manunggal Propert erty Tbk

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

PT Mega Manunggal Propert erty Tbk

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 & Jabar 71% Jateng 5% Jatim 8% Riau & Kep. Riau 8% Sumut 5% Sumbar 0% Sulsel 2% Kaltim 1% Jakarta, Banten & Jabar 57% Jateng 6% Jatim 9% Riau & Kep. Riau 9% Sumut 4% Sumbar 1% Sulsel 2% Sulteng 4% Kaltim 3% Bangka Belitung 5%

15

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

PT Mega Manunggal Propert erty Tbk

MMP’s logistic properties are located closer to consumers

BEST

Cinere Kunciran Tangerang Cengkareng Penjaringan Tanjung Priok DKI Jakarta Kebon 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 13 12

9

8 7 6 5 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.

PT Mega Manunggal Propert erty Tbk

Creating trust among our clients

Consumption Logistic Bank Logistic E-commerce Manufacturing Training

Build to Suit Multi Tenant

Tenant profile of MMP’s logistic properties as of 31 Maret 2016

17 E-commerce Bank 0% Consultant 0% Consumer 1% Distributor 0% E-commerce 6% IT 0% Logistics 29% Manufacture 61% Service 0% Trading 1% Training Center 1% Others 1%

PT Mega Manunggal Propert erty Tbk

Sectio ion 4

Compan mpany rece cent nt upda pdates tes

PT Mega Manunggal Propert erty Tbk

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

Three factors of success

18 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.

PT Mega Manunggal Propert erty Tbk

 We have secured partnership with GIC, 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

 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 Properti PT Mega Tridaya Properti

(67%) 99,5%

PT Intirub

99,0% 99,5%

PT Mega Dharma Properti

90% 99,0% (33%)

GIC PT Subang Cakrawala Properti PT Subang Horison Properti

99,0% 99,0%

PT Mega Manunggal Propert erty Tbk

Continuous effort to cut costs amid aggressive capacity expansion

20 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 Q3 2016  There are two more warehouses to be built in Q3 2016, pending land clearance

PT Mega Manunggal Propert erty Tbk

Sectio ion 5

Fin inanci ncial al Re Revie iew

PT Mega Manunggal Propert erty Tbk

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 March 2016, our NLA stood at 163.911 m2

2012 2013 2014 2015 3M16 Net Leasable Area (m2) 118,199 139,811 163,757 163,911 163,911 Leased area (m2) 105,657 135,311 154,623 159,318 163,911 Occupancy Rate (%) 89% 97% 94% 97% 100% (Rp bn) 2012 2013 2014 2015 3M16 Unilever Mega DC 50.6 88.3 82.9 85.97 22,10 Li & Fung

• 6.8

16.2 13.95 4.42 Intirub Business Park 11.5 24.4 42.8 60.93 15.91 Selayar

• 2.64

1.15 Total revenue 62.1 119.5 141.9 163.49 43.58 21 21 CAGR 62.3%

89% 97% 98% 97% 100%

55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 105%

• 50,000

2012 2013 2014 2015 3M16 Net Leasable Area (m2) Occupancy Rate 2012 2013 2014 2015 3M16 Unilever IBP L&F Selayar

PT Mega Manunggal Propert erty Tbk

222.4 261.1 64.8

• 119.5

141.9 163.5 37.2 43.6 2013 2014 2015 3M15 3M16 IDR Bn Increase in fair value of investments properties Rental Revenue

Summary of profit and loss comprehensive

Summary of profit and loss and other comprehensive income 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) 2013 2014 2015 3M15 3M16 Revenues 119.5 141.9 163.5 37.2 43.6 Operating profit 105.6 114.3 121.7 29.6 31.8 Finance Costs (36.1) (43.9) (51.8) (13.2) (12.9) Forex gain / loss - net (117.7) (15.2) (28.9) (14.1) 4.9 Changes in fair value of PI 222.4 261.1 64.8

• Profit before tax

174.2 309.4 131.0 2.5 29.9 Income tax (12.2) (14.2) (16.3) (3.7) (4.4) Comprehensive income (loss) 90.5 286.4 114.4 (1.2) 25.6 Appraised value of Investment properties per 31 Desember 2015 1 (Rp miliar) Unilever 857.47 Li & Fung 170.08 Selayar 45.54 Landbank 464.8 Intirub Business Park 570.12 Total investment properties 2,108

Note: 1) Appraised value from KJPP Stefanus Tonny Hardi & Rekan

Asset yield

22 22

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

PT Mega Manunggal Propert erty Tbk

1,749 2,037 2,388 2 556 586 204 141 868 1,448 2,551 2,576 0.6x 0.4x 0.1x 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

2013 2014 2015 3M16

(x)

IDR Bn Investment Properties Debt-to-Equity Equity Debt-to-Equity

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 0.1x at the end of March 2016.

(Rp bn) 2013 2014 2015 3M16 Cash and cash equivalent 6.4 11.3 383.0 374.0 Current asset (a) 88.9 82.4 518.8 455.5 Investment properties 1,748.6 2,037.2 2,388 2,410 Non current asset (b) 1,751.1 2,056.1 2,685 2,763 Total asset (a+b) 1,840.0 2,138.5 3,204 3,219 Short term liabilities (c) 604.4 136.6 175.5 185.1 Long term liabilities (d) 367.8 554.4 477.8 457.6 Debt 562.5 597.4 587.44 514.5 Total liabilities (c+d) 972.2 691.0 653.3 642.7 Paid in capital 75.0 400.0 571.4 571.4 Retained earnings 529.6 816.0 891.57 957.1 Total equity 868.2 1,447.5 2,551 2,574 23

PT Mega Manunggal Propert erty Tbk

49,296 106,268 115,063 122,852 29,820 32,466 2012 2013 2014 2015 3M15 3M16 EBITDA growth (IDR bn) 119,486 141,918 163,492 37,151 43,587 2013 2014 2015 3M15 3M16 Revenue (Rp bn)

Summary of financial position

Revenues, Rp bn EBITDA, Rp bn Equity, Rp bn Capital Expenditure, Rp bn

24 51.3% 705,815 868,242 1,445,182 2,548,111 1,443,569 2,573,660 2012 2013 2014 2015 3M15 3M16 Equity (IDR Bn) 52.8% 1,034,707 283,301 233,294 286,807 21,835 435,000 2012 2013 2014 2015 3M16 2015F Land (IDR Bn) Building (IDR Bn) CIP (IDR Bn) Total

PT Mega Manunggal Propert erty Tbk

Key performance matrix

25 2013 2014 2015 %CAGR 3M15 3M16 %YOY Operational metric Net Leasable Area, m2 Built to suit 111,900 111,900 111,900 11% 111,900 111,900 0% Multi tenants 27,911 51,857 52,011 37% 51,857 52,011 0% Total, m2 139,811 163,757 163,911 18% 163,757 163,911 4% Occupancy rate, % Built to suit 100% 98% 97%

• 97%

100%

• Multi tenants

84% 87% 98%

• 92%

100%

• Average occupancy rate, %

97% 94% 97%

• 96%

100%

• Average remaining lease term,

years 7.5 6.5 6.0

• 6.0

6.0

• Revenue by segment

Revenue, Rp bn Rental built to suit 94,931 99,160 99,922 41% 23,265 26,528 12% Rental multi tenants 24,555 42,758 63,570 135% 13,886 17,058 19% Total revenues, Rp bn 119,486 141,918 163,492 62% 37,151 43,587 15% Profitability Operating Profit (EBIT), Rp bn Built to suit 81,881 83,514 77,544

• 18,644

19,109

• Multi tenants

23,721 30,736 44,134

• 10,985

12,642

• Total EBIT, Rp bn

105,601 114,251 121,678

• 29,629

31,751 7% EBIT margin, % 88% 81% 75% 58% 80% 73%

• EBITDA, Rp bn

106,267 115,063 122,852 58% 29,820 32,466 8% % margin 89% 81% 75% 80% 74%

• Interest expense, Rp bn
• 35,991
• 42,818
• 51,843

80% 14,065 4,947 12% Forex loss nett, Rp bn

• 117,712
• 15,201
• 32,018

21%

• 691%

Profit before tax, Rp bn 174,187 309,395 131,003

• 41%

2,469 29,944 41%

PT Mega Manunggal Propert erty Tbk 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 Mar 2016 Revenue IDR Bn

94,931 99,160 99,922 26,528 24,555 42,758 63,570 17,058 10,000 60,000 110,000 160,000 210,000 2013 2014 2015 3M16 Built to Suit Multi Tenants

141.918 163.492 43.587 119.486

PT Mega Manunggal Propert erty Tbk

Sectio ion 6

Growth

• wth St

Strat ateg egy

PT Mega Manunggal Propert erty Tbk

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

PT Mega Manunggal Propert erty Tbk

Constructing logistic properties with international standard

1

Warehouse Site identified Land acquired (downpayment) Construction permits secured Estimate 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

PT Mega Manunggal Propert erty Tbk

Focus in built to suit warehouse

2

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 29

PT Mega Manunggal Propert erty Tbk

Continue to improve operating efficiency

3

 Investing in operating system to release some of the

• perational bottleneck and to improve our productivity

 Implement a unified database for storage of tenant records and

• ther 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

• ur

construction cost with

• ther

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

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Sectio ion 7

Indus dustry try

PT Mega Manunggal Propert erty Tbk

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 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 31 41% 37% 35% 32% 30% 28% 21% 18% 18% 13% 7% Indonesia Vietnam Myanmar Malaysia Thailand Filipina Kamboja Singapura Tidak ada Laos Brunei

Indonesia becomes main target for business development in ASEAN Track record in the strong growth in the logistic industry in Indonesia

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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 50 100 150 200 250 300 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Population (mn) Rata-rata estimasi pertumbuhan PDB riil 2012-2016F

Indonesia continues to be an attractive target for FDI

32 32

184 187 183 235 252 283 283 280 321 372 400 477 234 268 253 292 325 357 391 386 405 432 464 505 623 740 697 882 1,040 990 974 988 1,010 1,030 1,080 1,130 273 351 399 450 539 617 692 771 862 961 1,060 1,170 200 400 600 800 1,000 1,200 1,400 2007 2008 2009 2010 2011 2012 2013 2014F2015F2016F2017F2018F 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

Average monthly wages (USD)

Source: EIU, Euromonitor

0% 20% 40% 60% 80% 100% 1990 2000 2010 2015 % households based on income 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

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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 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

1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 (USD mn)

Foreign Direct Investment Land price (USD/m2)

PT Mega Manunggal Propert erty Tbk

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 Yield (%per annum) Yield (%p.a) Risk - free Rates

Source: Colliers International

5% 5% 0% 5% 4% 10% 3% 0% 2% 4% 6% 8% 10% 12% 5 10 15 20 25 HongkongSingapore Tokyo Delhi Shanghai Beijing Guangzhou Rental, US$ per sq ft p.a. (LHS) Forecast growth, % YoY

Source: Colliers International

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.

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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.

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PT Mega Manunggal Propert erty Tbk

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

E E E

Source : BPS, Bappenas, UNPP, Mckinsey

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PT Mega Manunggal Propert erty Tbk

Investm estment ent Consideration sideration

Sectio ion 8

PT Mega Manunggal Propert erty Tbk

First mover in provider of modern logistic property

Investment consideration

1

Provider of high quality logistic property

2

Portfolio of assets that provide stable and recurring cash flow

3

Proven track record in land acquisition and delivery

4

Strategically located logistic property in Indonesia

5

Strong exposure to consumer sector that has high potential growth

6

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PT Mega Manunggal Propert erty Tbk

Sectio ion 9

Append pendix ix 1

PT Mega Manunggal Propert erty Tbk

Audited Balance Sheet

Year to Dec 31, Rp mn 2012 2013 2014 2015 3M15 3M16 % YoY Cash and Equivalents 6,309 6,368 11,311 382,973 4,518 374,027 8179.0% Trade receivables 381 10,457 13,714 8,775 95,800 11,015

• 88.5%

Other current assets 81,964 72,054 57,381 127,100 54,617 70,471 29.0% Property & equipment 1,262 1,236 2,107 13,483 2,184 13,283 508.1% Investment properties 1,409,229 1,748,426 2,036,806 2,388,400 2,038,352 2,410,234 18.2% Other non-current assets 962 1,469 17,183 283,589.46 16,432 340,323 1971.0% Total assets 1,500,107 1,840,010 2,138,502 3,204,321 2,211,903 3,219,353 45.5% Trade payable 178,435 25,081 26,574 12,646 19,898 12,028

• 39.6%

Unearned revenue 70,345 23,932 23,528 25,281 94,739 88,019

• 7.1%

Bank loans - short term 70,381 181,547 35,636 124,911,250 15,658 72,440 362.6% Other current liabilities 146,123 373,842 50,859 12,630 82,999 12,634

• 84.8%

Bank loan 325,859 360,440 541,288 460,646 529,666 440,059

• 16.9%

Customer deposits

• 3,665

7,845 11,353 8,348 11,729 40.5% Other long term liabilities 3,149 3,259 4,917 5,826 14,305 5,791

• 59.5%

Total Liabilities 794,291 971,766 690,647 653,294 765,613 642,700

• 16.1%

Minority interest

• 2,673

2,916 2,721 2,993 10.0% Equity 705,815 868,242 1,445,182 2,548,111 1,443,569 2,573,660 78.3%

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PT Mega Manunggal Propert erty Tbk

Audited Profit and Loss

Year to Dec 31, Rp mn 2012 2013 2014 2015

3M15 3M16 % YoY

Revenue 62,066 119,486 141,918 163,492 37,151 43,587 17.3% Cost of revenue 3,886 5,940 13,084 16,059 4,022 4,164 3.5% Gross profit 58,180 113,546 128,834 147,432 33,129 39,423 19.0% G&A 9,340 7,944 14,616 25,754 3,500 7,672 119.2% Operating profit 48,840 105,602 114,218 121,677 29,629 31,751 7.2% EBITDA 49,296 106,268 115,031 122,852 29,820 32,466 8.9% Net interest income (expense)

• 16,049
• 35,991
• 42,818

23,640 (13,220) (6,818)

• 48.4%

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

• Other items
• 17,964
• 117,848
• 23,165

31,822 (13,939) 5,011

• 136.0%

Profit before tax 372,338 174,187 309,363 131,003 (1,246) 25,586

• 2154.1%

Tax

• 6,298
• 12,201
• 14,192

16,349 (3,715) (4,359) 17.3% Proforma adjustment

• 52,110
• 71,454
• 8,482
• Net income

313,930 90,532 286,404 114,415 (1,294) 25,549

• 2074.4%

Core income

• 21,593
• 14,180

40,479 78,567 48 37

• 23.0%

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PT Mega Manunggal Propert erty Tbk

Audited Cashflow

Rp mn 2015 3M15 3M16 %Change Cash flow from operating activities Cash Receipt from Customer 191,312 37,087 114,067 208% Interest Received 26,529 26 7,272 27869% Cash Paid for Operating Expenses and Employees (23,484) (3,303) (6,632) 101% Payment to Supplier and Others (51,923) (5,972) (8,975) 50% Tax paid (16,009) (1,429) (10,914) 664% Interest paid (50,840) (12,845) (12,533)

• 2%

Net cash provided by operating activities 75,586 13,564 82,285 507% Cash flow from investing activities Acquisition of Investment Properties

• (9,034)

(19,386) 115% Acquisition of Property and Equipment (311,999) (144) (827) 474% Advance for Purchase of property & equipment (264,950) Advances for Purchase Asset (914) Loan Receivables (56,408) Acquisition of shares of subsidiary

• 2,000

(2,160) Net Cash Used in Investing Activities (634,271) (7,178) (22,373) 212% Cash flow from financing activities Loan Receipts from Related Parties 1,508 Payment to Related Parties (17,826) 1,508 Loan Receipts from Bank 14,957 (17,826) (2,500)

• 86%

Payment to Bank Loan (55,985) 14,957

• 100%

Payment of consumer Financing Liabilities (646) (11,966) (68,115) 469% Paid-up capital stock non controlling 4 (157) (186) 18% Receipt from Paid in Capital 987,702 Net Cash provided by Financing Activities 929,714 (13,484) (70,801) 425% Changes in cash and cash equivalent 371,029 (7,098) (10,889) 53% Effect of forex 632 305 (257)

• 184%

Beginning balance 11,311 2,200 Ending balance 382,973 11,311 382,973 3286%40 40

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End of presentation

Thank k you

PT Mega Manunggal Property Tbk