PT SARATOGA INVESTAMA SEDAYA TBK F Y 2 0 1 8 U P D A T E S - - PowerPoint PPT Presentation

PT SARATOGA INVESTAMA SEDAYA TBK

F Y 2 0 1 8 U P D A T E S

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Disclaimer

“These materials have been prepared by PT Saratoga Investama Sedaya, Tbk (the “Company”) from various internal sources and have not been independently

• verified. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or subscribe

for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice. These materials contain embedded statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words whether or not explicitly stated such as “expects,” “plan,” “will,” “estimates,” “projects,” “intends,” or words of similar

• meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those

in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. The Company or any of its affiliates, advisers or representatives accepts no liability whatsoever for any loss howsoever with respect to any use or reliance upon any of the information presented or contained in these materials. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed.”

C O R P O R AT E I N F O R M AT I O N

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Saratoga – A Leading Active Investment Company

▪ Leading active investment company in Indonesia with NAV of approximately USD 1.1 billion ▪ Listed in 2013 and is among the top 100 largest market capitalization stocks on the IDX ▪ Focused on early-stage, growth-stage, and special situation opportunities ▪ Actively engaged with investee companies’ management teams in unlocking value of investments ▪ Invested in key sectors of the Indonesian economy: Consumer, Infrastructure and Natural Resources

Data as of December 2018 Source: Company information

Infrastructure Consumer Power Industrial Telecomm- unications Mobility Healthcare Natural Resources Agriculture Oil & Gas Metals & Mining Lifestyle

5 ✓ Early-stage companies provide large upside potential ✓ Ability to acquire larger stakes allows Saratoga to exert significant influence, develop company strategy and products and generate strong return ✓ Growth companies generate sustainable and healthy cash flows for Saratoga portfolio ✓ Provide great upside potential when growth companies enter into mature phases ✓ Blue-chip Investee Companies are established industry leaders with growth and capital appreciation

• pportunities

✓ Saratoga to remain a long-term shareholder in these businesses

Natural Resources Infrastructure Consumer SC Technology Investment II Provident Growth Fund

% Sum of the Parts (SOTP)

53% 30% 17%

Sihayo Copper Gold Agro Maju Raya Agra Energi Indonesia Listed Blue Chip Companies Growth Companies Early Stage Companies Tenaga Listrik Gorontalo Merdeka Copper Gold Provident Agro Interra Resources Adaro Energy Tri Wahana Universal Nusa Raya Cipta Mitra Pinasthika Mustika Gilang Agung Persada Bumi Hijau Asri Mulia Bosco Logistik Awal Bros Hospital Deltomed Aneka Gas Industri Tower Bersama Infrastructure

Data as of December 2018 Source: Company information

Diversified Investment Portfolio

Gold Palm Oil & Gas Power Gold & Copper Palm Oil & Gas Refinery Construction Coal & Power Telco Tower Auto Lifestyle Property Logistics Healthcare Herbal Medicine Air Gas

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NAV per Share(1)(2) CAGR = 27% JCI Index CAGR = 16%

(1) NAV per Share is adjusted for capital raising. The information contained in this document is intended solely for the use of the internal reference. Saratoga makes no representations or warranties, expressed or implied, with respect to the information herein. (2) For NAV per Share between 2008 and 2014, valuation of listed investee companies are calculated based on 2W VWAP as of year end close. Due to the implementation of new accounting standards in 2016, the 2015 and 2016 calculations for listed investee companies are based on their respective closing share price as of 31 December 2016.

Figures in IDR

Net Asset Value Growth

Data as of December 2018 Source: Company information

539 3,560 7,157 6,108 7,462 6,557 8,174 4,885 7,202 8,240 5,814 1,355 2,534 3,704 3,822 4,317 4,274 5,227 4,593 5,297 6,356 6,194

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 NAV JCI

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• Agra Energi

Indonesia

• Paiton Energy
• LMS

commenced the

• peration of the

Cipali toll-road

• Sumatra Copper

& Gold achieved its first gold pour

• Mulia Bosco

Logistics

• Awal Bros

Hospital Group MPM commenced the building of the new lubricant factory Deltomed Laboratories

• Awal Bros

increased the number of the hospitals

• Mulia Bosco

increased the size of the fleet and storage

• Finders

Resource

• NRC

TWU increased capacity to 16k bopd

• Gilang

Agung Persada

• Merdeka

Copper Gold

MPI’s Sarulla Geothermal Project achieved US$1.2B financial closing

2013 2014 2015 2017 2016

Investment Track Record

Data as of December 2018 Source: Company information

INVEST GROW MONETIZE Aneka Gas Industri Merdeka Copper Gold listed on the IDX

• Divested Pulau

Seroja Jaya

• Divested PALM

Plantation assets

• Divested Lintas

Marga Sedaya

• Divested Medco

Power

• Partial sale of

ADRO Shares

• MPM listed on

IDX

• Saratoga

listed on IDX

Partial sale of TBIG Shares Divested Batu Hitam Perkasa (Paiton Energy)

• Adaro

acquired coal assets in Australia

• Merdeka

acquired copper and assets in Indonesia

2018

I N V E S T M E N T A C T I V I T I E S

9 Data as of December 2018 Source: Company information

101 54 39 8

Desktop Diligence Term Sheet Preliminary Assessments Opportunities

2

New Investments

2015

❖ PT Agra Energi Indonesia ❖ PT Batu Hitam Perkasa (Paiton Energy)

102 41 27 2

Desktop Diligence Term Sheet Preliminary Assessments Opportunities

2

New Investments

2016

❖ Mulia Bosco Logistik ❖ Awal Bros Hospital

Investment Opportunity Selection Process

124 50 31 4

Desktop Diligence Term Sheet Preliminary Assessments Opportunities

1

New Investments

2017

❖ Deltomed Laboratories

91 47 32 8

Desktop Diligence Term Sheet Preliminary Assessments Opportunities

1

New Investments

2018

❖ Aneka Gas Industri

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Investment Activity Summary FY18

Figures in IDR billion

Dividend Income Breakdown

IDR billion 2015 2016 2017 2018 ADRO 174 219 295 483 TBIG

• 190

222 251 NRCA 5 3 5 7 PALM

• 132

79 117 MPMX 15 59 282

• TWU

74 19

• BHP
• 40

Deltomed

• 2

Total dividends 268 622 883 900 # of investees 4 6 5 6

Figures in IDR billion

Investment and Divestment

Data as of December 2018 Source: Company information

Summary

❖ Dividend income reached a new record, contributed by 6 investee companies. Positive sign of strong business growth and operation of the investee companies. ❖ Total investment and divestment in line with the planning of the year.

649 419 543 1,403

• 98

2,254 558

• 500

1,000 1,500 2,000 2,500 2015 2016 2017 2018 Total Investment Total Divestment 268 622 883 900 200 400 600 800 1000 2015 2016 2017 2018 TWU MPMX PALM NRCA TBIG ADRO

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Investments and Divestments in FY18

New investments Divestments

Investment details Company description Investment / divestment thesis

Date of Investment: Accumulated throughout 2018 Committed Capital: IDR 144 billion

The company supply industrial gases, namely air gases (oxygen, nitrogen, and argon), synthetic gases, fuel gases, rare gases, sterilization gases, refrigerant gases and electronic gases. It also supplies mixed, specialty and medical gases along with complimentary equipment and installation

• fferings.

Date of Divestment: December 2018 Sale proceeds: USD 9 million

The company was established in February 1994 and started commercial operation of two power plants (Units 7 and 8) in May and July 1999. The capacity of each unit is

• 615MW. Unit 3 having capacity of 815MW, is

the first super critical coal fired power plant in Indonesia and started commercial

• peration in March 2012.

A 3 year strategic investment on the back of the growth potential of the power industry in Indonesia and the attractive valuation of the

• pportunity. As the target IRR is reached and

the new shareholder of PE will be able to contribute something further to the business of PE we decided to exit the investment.

• First and largest industrial gas company

in the country.

• Market leader with extensive distribution

network.

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Investee Companies Highlights FY18

Activity Investmen t/Divestme nt Summary Amount Investee Company Acquisition Adaro Energy and EMR Capital completed the acquisition of Rio Tinto’s 80% interest in the Kestrel Coal Mine in Australia 2.25B USD Adaro Energy (ADRO) Acquisition Through public tender Merdeka is in the process of acquiring Finders Resources, an Australian public listed entity with copper assets in Indonesia Ongoing Merdeka Copper Gold (MDKA) Divestment A strategic divestment of MPM’s lubricant business to Esso Petroleum Company, Limited and ExxonMobil UK Limited (“ExxonMobil”) 436M USD Mitra Pinasthika Mustika (MPMX) Date August 2018 Ongoing June 2018

F I N A N C I A L H I G H L I G H T S

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Consolidated Statement of Profit and Loss (IDR billions) 2018 2017* % variance Income (loss) (6,179) 3,878 (259%) Expenses (506) (627) 19% (Loss) profit before tax (6,685) 3,251 (306%) Income tax 550 (89) 717% (Loss) profit for the year (6,135) 3,162 (294%) Attributable to owners of the Company (6,195) 3,274 (289%) Attributable to non-controlling interests 60 (112) 153% Other comprehensive income 1 (2) 150% Total comprehensive income for the year (6,134) 3,160 (294%) Attributable to owners of the Company (6,194) 3,272 (289%) Attributable to non-controlling interests 60 (112) 153% Key Balance Sheet Items (IDR billions) 2018 2017 * % variance Investment in equity securities 18,730 24,755 (24%) Cash and cash equivalents 782 902 (13%) Borrowings and Exchangeable Bonds 3,958 3,424 15% Total liabilities 4,151 4,342 (4%) Equity attributable to owners of the Company 15,655 22,033 (28%)

Financial Highlight 2018

* as restated for PSAK 71 implementation

Summary

❖ Loss on investment in equity securities was IDR 6.1 trillion, mainly contributed by the decline of the market price of TBIG and ADRO shares. However the loss is unrealized and mark- to-market. ❖ Dividend income amounted to IDR 900 billions. The contributors for the dividends came from ADRO IDR 483 bio, TBIG IDR 251bio, PALM IDR 117bio and other investees. ❖ Loss after tax to IDR 6.2 trillion, which brings total assets to IDR 20.1 trillion and investment in equity securities to IDR 18.7 trillion. ❖ Cash and Debt level remain stable throughout the year. ❖ The Exchangeable Bond was fully redeemed in late 2018.

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Profit & Loss Statement Statement of Financial Position Net loss on investment in equity securities (7,251)

Dividend, Interest and Investment Income

1,147 Loss on exchange rate (150) Interest Cost (282) Operating Expenses (incl. Salary) (138) Other income (expenses) (11) Loss before tax (6,685) Loss for the year attributable to owners

• f the Company

(6,195)

(1) NAV accounted exchangeable bond on a cash basis instead of fair value

Cash and cash equivalents 782 Receivables 366 Investment in equity securities 18,730 Advances for investment in equity securities 97 Others 140 Total Assets 20,115 Borrowings 3,938 Deferred Tax 122 Others 91 Total Liabilities 4,151 Net Equity attributable to owners of the Company 15,655 Net Asset Value of investment portfolio(1) 15,772 Figures in IDR billion

Key Financial Statement 2018

16 * Consist of Adaro Energy and Tower Bersama ** Consist of Provident Agro, Mitra Pinasthika Mustika, Seroja Investment Limited, Nusa Raya Cipta, Sihayo Gold, and Interra Resources, Merdeka Copper Gold and etc.

Multiple sources of cash and liquidity

Potential Divestment Investment income

Interest income Dividend Income

Blue Chip Listed Investee companies* Other listed investee companies** Unlisted investee companies

Potential sources of liquidity as of December 2018

ADTV - IDR 140 billion

Diversified Sources of Cash and Liquidity

Contributed by investee companies

Data as of December 2018 Source: Company information

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Capital structure

Figures in IDR billion Net Debt / NAV of 20%

Funding sources Loan maturity profile

Strong Capital Structure

Data as of December 2018 Source: Company information

Continue to diversify funding sources and manage cost

• effectively. Healthy leverage is a key part of the active investment
• perating model.

Current Funding Structure ❖ Bank Loans

• Revolving credit facility
• Bilateral Loan

❖ Banking partners: ING, Natixis, DBS, BTMU and HSBC, SCB Alternative Funding sources ❖ Convertible Bond ❖ Exchangeable Bond ❖ Medium Term Notes and others

Figures in IDR billion

Total borrowings as of year end 2018 stands at IDR 3.9T

(1,086) (615) (854) (496) (869) (1,200) (1,000) (800) (600) (400) (200)

• 2019

2020 2021 2022 2023 3,136 15,772 Net Debt NAV

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Operating Expense (Opex)

• Maintain low operating expense to below 1%.
• Expenses include salary, rental, professional fees, and other operating expenses.
• The decrease in Opex/NAV ratio in 2018 was driven by the decrease of Opex related to investment and divestment activities.

Cost ratio & Coverage ratio Opex/NAV Opex + Interest/NAV Dividend/ Interest Dividend/ Interest + Opex 2013 0.61% 1.73% 1.1x 0.7x 2014 0.45% 1.43% 1.2x 0.8x 2015 1.03% 2.81% 1.1x 0.6x 2016 0.73% 2.19% 2.3x 1.5x 2017 0.95% 2.51% 2.5x 1.6x 2018 0.88% 2.67% 3.2x 2.1x

Expense Coverage Ratios

Data as of December 2018 Source: Company information

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PT Saratoga Investama Sedaya Tbk.

Correspondence Address: Menara Karya 15th Floor

• Jl. H.R. Rasuna Said Kav. 1-2

Jakarta 12950 For further information, please contact: Investor Relations at Investor.relations@Saratoga-investama.com