SEPTEMBER 2019 1 2 3 Disclaimer The information contained in - - PowerPoint PPT Presentation

1

PT Mega Manunggal Property Tbk

SEPTEMBER 2019

2

3

4

Disclaimer

The information contained in this presentation has been prepared by PT Mega Manunggal Property Tbk. (the “Company”) and is being furnished to you solely for your information and may not be reproduced or redistributed to any other person, in whole or in part in any manners or for any purpose. In particular, neither the information contained in this presentation nor any copy hereof may be, directly or indirectly, taken or transmitted into or distributed in any jurisdiction which prohibits the same except in compliance with applicable securities laws. This presentation does not contain all material information concerning the Company and the information set forth in these materials is subject to change without notice. The third party information and statistical data in this presentation have been obtained from sources the Company believes to be reliable but there can be no assurance as to the accuracy or completeness of the included information. No reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. None of the Company, its directors, officers, shareholders, advisors or representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of the information in this presentation, and nothing in this presentation is, or should be relied upon as, a promise or representation by any of them. None of the Company, its directors, officers, shareholders, advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Certain statements in this presentation may constitute “forward-looking statements”, including statements regarding the Company’s expectations and projections for future

• perating performance and business prospects. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business

strategies and the environment in which the Company will operate in the future. Such forward-looking statements speak only as of the date on which they are made. Accordingly, the Company expressly disclaims any obligation to update or revise any forward-looking statement contained herein to reflect any change in the Company’s expectations with regard to new information, future events or other circumstances. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Accordingly, parties reviewing this presentation should not place undue reliance on any forward-looking statements. The information contained in this presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. This presentation is not intended to form basis any investment decision to purchase securities of the Company and does not constitute or form part of, and should not be construed as, any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities of the Company in any jurisdiction, including the United States. The Company’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered, sold or delivered within the United States absent registration under or an applicable exemption from the registration requirements of the Securities Act and this presentation does not constitute or form a part of any offer to sell or solicitation of an offer to purchase or subscribe for securities in Indonesia in which such offer, solicitation or sale would be unlawful prior to registration and such registration being deemed effective by the Otoritas Jasa Keuangan. By reviewing this presentation, you acknowledge this Disclaimer and agree to be bound by the foregoing limitations, and you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company.

5

Agenda Presentation

Section Pages 1 Who we are 6 2 Growth strategy 17 3 On the right track 23 4 Strong growth opportunity 28 5 Key financial 47 6 Assets in details 53 7 Other financial info 65

6

Section 1

Who We Are

7

Company At A Glance

Overview

• PT. Mega Manunggal Property Tbk

(“MMP”) is a warehouse provider that supports industrial property needs in Indonesia focusing on developing, owning and operating logistic properties with a focus in warehousing that specifically meet international standards. Established on mid 2010, currently MMP has Net Leasable Area of area total 321,395 m2 - including a 90,000 m2 NLA warehouse for PT Unilever Indonesia,

• ne
• f

the largest Unilever warehouses globally.

Projects Currently MMP has 9 assets in 5 different strategic locations: MM2100, Bekasi:

• Unilever Mega DC
• Li & Fung Logistic
• Selayar
• Block AE

Cikarang, Bekasi:

• Delta Silicon III

Halim Cililitan, East Jakarta:

• Intirub Business Park

Tapos, Depok:

• Lazada warehouse

Jababeka:

• Cibatu warehouse

Cileungsi:

• Cileungsi warehouse

MMP is currently developing Lazada Phase 2 warehouse in Tapos, a warehouse in Delta Silicon III Cikarang Phase II & III, a warehouse in Pondok Ungu Bekasi, a warehouse in Jababeka, Bekasi, and a warehouse in Manyar, East Java.

Facilities

Facilities of PT. Mega Manunggal Property Tbk are developed with specifications which 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.

8

Structure of PT Mega Manunggal Property Tbk

99.99%

MMP’s asset structure

PT Mega Manunggal Property Tbk

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

55.00%

PT Intirub

99.76% 99.50% 45.00%

GIC PT Mega Properti Logistik Nusantara

99.99%

Cibitung Airport Cibitung Cibatu Depok Cileungsi Bekasi Halim Pondok Ungu Manyar Jababeka

99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 95.00% 99.99%

Cikarang PT Mega Dharma Properti PT Manunggal Persada Properti PT Subang Horison Properti PT Subang Cakrawala Properti PT Mega Buana Properti Logistik PT Manunggal Timur Properti PT Bukit Properti Logistik PT Mega Cahaya Properti PT Mega Angkasa Properti PT Ace Dalle Mega Properti PT Mega Cakrawala Internusa Properti PT Mega Jaya Lestari Properti

99.40% 99.40% 99.62%

PT Mega Arga Properti

99.62%

PT Mega Surya Properti

99.62%

PT Mega Aruna Nusantara Properti

9

Board of Directors

Bonny Budi Setiawan President Director Has been the Company’s Director since 2015 and appointed as the President Director in January 2017. Earned a Bachelor of Business Administration in Accounting and Finance from Simon Fraser University, Canada (1997). Previously served as Executive Director of PT UBS Securities Indonesia (2011-2015); Senior Vice President of PT Danareksa Sekuritas, Jakarta (2010 - 2011); Vice President of Research Division of PT Danareksa Sekuritas in Jakarta (2009 - 2010); Vice President of Research Division of Merrill Lynch, Jakarta (2007 - 2009); Vice President of Research Division of PT CIMB-GK Securities, Assistant Vice President of research division of PT Danareksa Sekuritas (2005 - 2007); Supervisor Consultant Financial Advisory Services (FAS) of Prijohandojo Boentoro & Co. (2003 - 2005); Research Analyst of PT Panin Sekuritas (2002 - 2003) and Export Supervisor of PT Pabrik Kertas Tjiwi Kimia (1998-2000). Loa Siong Lie Director Has been appointed as the Independent Director since 2017. He is in charge of technical and construction. He earned Civil Engineering Bachelor’s degree from University of Tarumanegara, Jakarta in 1996. He was Project Manager for PT Sinar Menara Deli (2016 – 2017), Project Manager for PT Supra Megah Utama ( 2012 - 2016), Site Manager for PT Pradani Sukses Abadi (2010 – 2012), Site Manager for PT Intersatria Budi Karya Pratama (2007 – 2010). Construction Manager for PT Praga Artamida ( 1996 – 2007).

10

Company Milestone

11

Investment Consideration

Provider of high quality and international standard logistic properties

1

Proven track record in developing and delivering logistic properties

2

Solid business model that provides stable and recurring cash flow

3

Strategically located logistic properties in Indonesia

4 5

Diversified and strong client base

12

• 1. Provider of high quality and international standard logistic properties

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

Typical specification from high-performance logistic properties

1 2 3 3

Office space Better working environment for employees

3 1

Car Berths Number of facilities that allow trucks to loading/unloading efficiently

2 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

We are the first mover in provider of modern logistic property, focusing on developing, owning and operating logistic properties, with a focus in warehousing that specifically meet international standards

13

Warehouse Specification

Standard warehou se Unilever Mega DC Li & Fung Intirub Business Park Selayar Lazada Cibatu Cileungsi Block AE Delta Silicon III 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 s/d 5 ton/m2 s/d 5 ton/m2 s/d 4 ton/m2 (1st Floor) s/d 4 ton/m2 (2nd Floor) s/d 4 ton/m2 Ceiling height ≤ 5,0 m 12 m (center 17 m) 11 m (center 12,5 m) 10 m (Phase I) 9 m (Phase II) 9 m (center 13m) 12 m (center 16 m) 12 m 12 m 8 m (Upper Floor) 9 m (Ground Floor) 12 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 Phase 1: Basement: 8 x 8 m Ground Floor 8 x 30 m Phase 2: Basement: 6 x 15 m Ground Floor 12 x 30m 30 x 12m 24 x 18 and 32 x 18 18x30m 18x24m 6x12m (1st Floor) No Pillar (2nd Floor) 18x24m Level single Single (multi racking) Single (multi racking) Multi Single Single (multi racking Single Single Multi Single Flooring standar Super flat Super flat Flat Flat Flat Super Flat Reinforce concrete Slab Reinforce concrete Reinforce concrete

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

14

118,199 139,811 163,911 163,911 230,370 300,680 321,395 2013 2014 2015 2016 2017 2018 9M2019

• 2. Proven track record in developing and delivering logistic properties

MMP has proven track record in acquiring land and developing logistic properties, which generally takes around 15 to 18 months to complete construction.

Growth in NLA in the past years

Project Land Area Net Leasable Area Date of Contract Months to develop Delivery date Unilever Mega DC 197,690 m2 90,288 m2 Dec 2010 16 months Apr 2012 Li & Fung 34,637 m2 21,612 m2 Jul 2012 11 months May 2013 Lazada Warehouse 90,041 m2 31,500 m2 Aug 2015 19 months Apr 2017 Cibatu 50,000 m2 36,335 m2 Jun 2016 15 months Dec 2017 Delta Silicon III (Ph 1) 100,000 m2 20,715m2 Mar 2018 24 months Jul 2019

Standard Warehouse Building

Project Land Area Net Leasable Area Date of Contract Months to develop Delivery date Intirub Business Park I 28,190 m2 36,622 m2 (warehouse) + 8,393 m2 (office) Dec 2011 9 months Jan 2012 Intirub Business Park II 32,380 m2 Dec 2013 18 months Apr 2014 Selayar 9,164 m2 5,620 m2 Apr 2015 12 months Apr 2015 Block AE 35,740 m2 38,854 m2 Sep 2016 18 months Feb 2018 Cileungsi 50,004 m2 31,456 m2 Sep 2016 18 months Feb 2018

Built-to-suit

m2 NLA

15

 MMP focuses towards developing warehouse with size of 5.000 to 100.000 m2.  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.

• 3. Solid business model that provides stable and recurring cash flow

Unilever Mega DC Li & Fung

Intirub Business Park

Selayar Operating assets that provide recurring and stable cash flow

Lazada

Cibatu Block AE Cileungsi DS III

16

Jakarta, Banten & Jabar 57% Jateng 6% Jatim 9% Riau &

• Kep. Riau

9% Sumut 4% Sumbar 1% Sulsel 2% Sulte… Kaltim 3% Bangka Belitung 5% Jakarta, Banten & Jabar 71% Jateng 5% Jatim 8% Riau &

• Kep. Riau

8% Sumut 5% Sumbar 0% Sulsel 2% Kaltim 1%

• 4. Strategically located logistic property 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

Source: Himpunan Kawasan Industri

% Industrial estate areas % Industrial estates that are developed

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

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

1

to

9

JORR I 10 to 17 JORR II

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

17

36% 43% 16% 5%

Manufacture Logistics E-commerce Others E-commerce

• 5. Diversified and strong client base

Logistic Manufacturing

Clients Tenant profile of MMP’s logistic properties as of Sept 2019

18

Section 2

Growth Strategy

19

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

Three factors of success

Efficiency Funding Volume

800,000 m2 NLA

 To achieve our NLA target of 800,000 m2 by end of 2021  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 by end of 2021 is 800,000m2 NLA.

20

Focus in built to suit warehouse

Facts  MMP has track record to complete complex construction  Our capabilities to build high specification warehouses:

• Superflat floors
• Double decker warehouse

 Increase profitability  Increase recurring revenue  Results in higher margin since majority of the expenses bear by tenant  Strengthen our brand name  Invest 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 and eCommerce to built warehouse for their company  Create a strong exit barrier

Our focus that will add values to our clients

21

 We have secured partnership with GIC, and in the

advanced discussion with another partnership

 This will create transparency and good corporate

• governance. GIC also help in expanding our

relationship with overseas banks which provide attractive offers.

 The partnership with GIC will bring funding that will

accelerate the development of the projects.

 MMP will continue to have stable cash flow from its

existing 8 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

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 ensure that funding is met on timely basis.

22

Continuous effort to cut costs amid aggressive capacity expansion

 We have successfully cut down our construction cost by 10% on recent development plan  We set our yield to cost for at least of 9-10%  Our formula is to have land cost for 1/3 of total cost  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

 CurPlan to construct 5 warehouses this year  rently under construction : Phase II warehouse for Lazada (35,000 m2) will be completed in

2019, DS-3 phase 1 project will be delivered as well in 2019.Pondok Ungu warehouse (54,000 m2) will be delivered in 2021, Jababeka warehouse will be delivered in 2020, Manyar Warehouse Phase II & III will be delivered in 2021.

23

Continue to improve operating efficiency

 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  Investing in engineers  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

24

Section 3

23

Projects Under Development

25

Projects Under Development

Currently we have 5 (five) projects under construction for approximately 253,195 m2 NLA warehouses, including DS III Phase I.

Location: Tapos, Depok (Phase III) Land area : 50,000 m2 Net leasable area : 35,000 m2 Tenant : Lazada Lease period : 10 years Estimated completion : Q4 2019 Location : Delta Silicon III, Cikarang, Bekasi Land area : 100,000 m2 Net leasable area : 67,475 m2 Tenant : DHL Lease period : 10 years Estimated full completion : 2021 Location : Pondok Ungu, Bekasi Land area : 55,708 m2 Net leasable area : 52,398 m2 Tenant : Multi-tenant Estimated full completion : 2021 Location: Jababeka, Bekasi Land area : 49,351 m2 Net leasable area : 31,680 m2 Estimated completion : 2020 Location: Manyar, East Java Land area : 114,614 m2 Net leasable area : 66,636 m2 Estimated completion : 2021

26

Current pipelines on track to achieve our NLA targets

Inquiries that could lead our 800,000m2 NLA target to be achieved. Achieving this requires approximately Rp4.0trn of capital expenditure. We undertake a strict and proper KYC process in selecting tenants as it is very essential to have good track record, long term tenants. 230k 301k 371k 71k 103k 139k 169k k 100k 200k 300k 400k 500k 600k 700k 800k 2017 2018 2019 Completed Under construction Pipelines

27

Values created from existing assets

Existing operating assets generate high yield to cost

672 827 833 848 1,607 2,155 2,456 1,302 1,612 1,643 1,787 2,852 3,588 4,065 16.8% 15.2% 17.1% 17.6% 13.3% 12.4% 12.0% 8.7% 7.8% 8.7% 8.4% 7.5% 7.5% 7.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2013 2014 2015 2016 2017 2018 Q3 2019 IP at cost IP at fair value Yield to cost Yield to fair value

28

Section 4

Strong Growth Opportunity

29

• The logistics sector in Indonesia remains nascent in comparison to other markets in the region, particularly compared to more

mature markets such as Singapore and Australia.

• Notwithstanding this, the growth potential is huge and there are signs of a fundamental imbalance between available supply and

demand for modern logistics warehousing space. We expect to see the Indonesian logistics market evolve into a modern logistics hub in the same way the sector has evolved in other markets regionally and globally.

Evolution of the logistics sector

30

• The

logistics sector has seen gradual development in recent times.

• However, at present most supply

chain

• perations

remain largely inefficient.

• Only in recent years has the market

begun to evolve from the traditional ‘gudang’ style

• f

warehouse to modern logistics warehouse building specifications for greater efficiency.

Evolution of the logistics sector

31

Demand Situation

31

32

A nascent industry to enter

26% 19% 9% 8% 14% 9% 13% 2016 2020 2035 Singapore Malaysia Japan South Korea

Logistic cost as % of total GDP

33

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

• rder 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

High logistic cost demand better infrastructures

“Besides the very high cost, logistic services in Indonesia are also bad like intervals in Indonesia for imported commodities requiring 5.5 days and transportation is also very costly” – The Indonesia Chamber of Commerce and Industry (Kadin) “Indonesia’s high logistic cost is due to under-utilized logistic assets, exacerbated by long and fragmented supply chains, low port efficiency and road congestion” – World Bank

36

Progress of Toll Road Projects

Ciawi-Sukabumi Cileunyi- Sumedang- Dawuan Krian-Legundi- Bunder-Manyar Pandaan- Malang Balikpapan- Samarinda Manado-Bitung Serang- Panimbang AP Pettarani 1 2 3 4 5 6 7 8 Km (RHS) 54 60.1 38.29 38.48 99.35 39 83.68 4.3 Land % 41.43 44.27 98.99 93.25 98.17 92.21 57.53 Physical % 28.43 26.87 76.02 89.71 85.24 59.25 12.97 20 40 60 80 100 120 20 40 60 80 100

Non Trans Jawa

Km (RHS) Land % Physical % Pejagan - Pemalang Pemalang - Batang Batang - Semarang Semarang - Solo Solo-Ngawi Ngawi- Kertosono Gempol- Pasuruan Pasuruan- Probolinggo Probolinggo- Banyuwangi Porong- Gempol 1 2 3 4 5 6 7 8 9 10 Km (RHS) 57.5 39.2 74.2 72.94 69.35 49.51 34.15 45 163.83 6.34 Land % 100 100 100 100 100 100 100 98.79 100 Physical % 100 100 100 100 100 100 100 100 100 20 40 60 80 100 120 140 160 180 20 40 60 80 100

Trans Jawa

Km (RHS) Land % Physical %

https://finance.detik.com/infrastruktur/d-4543749/mengintip-progres-34-ruas-tol-yang-sedang-dibangun

37

Progress of Toll Road Projects

No Jabodetabek Km (RHS) Land % Physical % 1 Cengkareng-Kunciran 11 63.96 52.52 2 Kunciran-Serpong 10.14 98.7 88.76 3 Serpong-Cinere 11.19 79.23 56.55 4 Cinere-Jagorawi 14.64 65.73 62.6 5 Cimanggis-Cibitung 26.5 70.45 10.47 6 Cibitung-Cilincing 32.76 76.63 48.07 7 Depok-Antasari 21.54 56.6 38.94 8 Bekasi-Cawang-Kp Melayu 21.04 60.53 75.2 9 Semanan-Pulo Gebang 31.1 24.05 8.45 10 Jakarta-Cikampek II Elevated 14.19 100 70.04 11 Japek II Sisi Selatan 62

https://finance.detik.com/infrastruktur/d-4543749/mengintip-progres-34-ruas-tol-yang-sedang-dibangun

38

Attractiveness of Greater Jakarta Connectivity and Established Infrastructures

Toll l Roads ds Airp rports rts Railway ilways

• Greater Jakarta has been

connected by 18 toll roads with length of 292.44 km throughout Jakarta, Bogor, Depok, Tangerang, dan Bekasi.

• 15 toll roads are operated by

Jasa Marga and the other 3 toll roads are operated by private sectors.

• Greater Jakarta has integrated

railways transportation, which include passengers and cargoes transportation.

• Indonesia’s government starts

to build railways project within Soekarno-Hatta International airports in terms of utilizing Indonesia’s railways transportation potential.

• Jakarta is also supported by

two major airports which located in West Jakarta and East Jakarta.

• Indonesia’s government and

state-owned airport operators Angkasa Pura I dan Angkasa Pura II are keen to attract participation through public- private partnership This will positively affect the process of delivering goods and services for tenant companies, which becomes competitive advantage for warehouse investment

39

Tanjung Perak Port

Juanda air Port In the near future, Gresik, Sidoarjo, and Surabaya will become our expansion target

21 Km

22 Km

In terms of land prices and availability, Gresik and Sidoarjo seem potential for warehouse location. It offers effective route to airport and port which could be added value for our future tenant.

35 Km

6 Km

Key Industry Served :FMCG, FnB, Electronic, Chemicals Greater Surabaya

Attractiveness of the locations - Connectivity

40

Industries driving the demand for logistics

Healthy Growth in FMCGs and Retail Urbanisation and growing wealth is already translating into growth in the FMCG sector and retail sales. This will increase the appeal of the logistics real estate market to a broader spectrum of modern international logistics players. Indonesia has a robust manufacturing sector Indonesia has a large manufacturing base driven by a large domestic consumer market and low labour costs. The robust manufacturing sector is another major driver of demand for logistics services and associated real estate. In 2015, manufacturing accounted for 22% of GDP.

Source: JLL

41

Indonesia Manufacturing Industry Snapshot

647 725 812 910 1,020 1,143 2015 2016 2017 2018 2019 2020 9.00% Food d and d Beverage erage Manufact factur urin ing g Sector r GDP P Value ue, , 2015-2020, , IDR R Trillio illions 2,405 2,622 2,858 3,115 3,395 3,700 2015 2016 2017 2018 2019 2020

1. Positive demographics profile 2. Robust economic growth 3. Large number of middle income class 4. High degree of consumption

Growth Drivers rs Market et Restr train aints ts

1. Slowing in global economy 2. Poor logistics infrastructure 3. High logistics cost 4. Regulation

Manufact facturi uring g Industry ustry GDP P Value ue, , 2015-202 020, , IDR R Trillio illions ns

The growing economy will further amplify the manufacturing industry, especially food & beverages that will create bigger demand of warehousing

Source: Frost & Sullivan

42

1. Positive demographics profile 2. Robust economic growth 3. High ICT adoption 4. Large number of local players

Growth Drivers rs Market et Restr train aints ts

1. Poor logistics infrastructure 2. Large unbanked population 3. Low adoption of cashless payment 4. Limited ICT competency

750 1,100 1,350 1,850 2,400 2,950 3,800 2013 2014 2015 2016 2017 2018 2019 31.1%

Indonesia e-Commerce Market Size, 2015-2019, USD Millions

Ecommerce is a growing tent that will push up the demand of warehouse space

Source: Frost & Sullivan

Indonesia E-Commerce Market Snapshot

43

Source: EIU, Euromonitor

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) Estimated average real GDP growth 2012-2016F

Indonesia continues to be an attractive target for FDI

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

Rising middle class income

• Jakarta minimum wage increased 17.9% per year on average,

which will imply in higher labour cost due to higher inflation rate. Productivity issue is assumed to be constant.

• Abundant amount of working-age population will increase labour

availability in the long-term. The composition also shows that male workers are dominating in working-age population.

Resilient economy growth and large domestic market are expected to boost investment in Indonesia Increase in minimum wages helps boost consumption in Indonesia, while minimum wages in Indonesia continue to be in the uptrend

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 2011 2012 2013 2014 2015 Minimum Wage Increase in PMW

Rp

Jakarta’s Historical Minimum Wage 2011 - 2015

Source: JLL

2012 2020

Indonesian population is becoming wealthier and consumption is expected to increase. By 2020, more than half of the population is expected to be middle class or above

30%

Middle and above

70%

Below middle

53%

Middle and above

47%

Below middle

44

Riding along with the growing E-commerce in Indonesia

Successful e-commerce businesses require scale which Indonesia is able to offer. This sector is expected to develop considerably over the short to medium term. While the e-commerce phenomenon has taken hold in many

• ther markets in the region, the sector is still in its infancy in

Indonesia and the potential future growth also presents an

• pportunity.

The Indonesian population has a large online presence. Internet and mobile internet traffic has increased significantly.

45

Section 5

47

Key Financial

46

Solid revenues growth

Development of NLA and Occupancy Rate MMP has successfully posted revenue Rp245.0 bn in 3Q19 supported by stable NLA and occupancy rate. Currently, our NLA stood at 321,395 sqm.

2013 2014 2015 2016 2017 2018 9M19 Net Leasable Area (sqm) 139,811 158,137 163,911 163,911 230,370 300,680 321,395 Leased area (sqm) 135,311 154,623 159,318 163,911 230,157 298,775 318,165 Occupancy Rate (%) 97.0% 94.0% 97.0% 100.0% 99.9% 99.4% 99.0% 139,811 158,137 163,911 163,911 230,370 300,680 321,395 96.8% 94.0% 97.2% 100.0% 99.9% 99.4% 99.0% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 95.0% 100.0% 2013 2014 2015 2016 2017 2018 9M19

• 50,000

100,000 150,000 200,000 250,000 300,000 350,000

47

261 65 323 217 144 107

• 142

163 175 209 299 245 220

2014 2015 2016 2017 2018 3Q19 3Q18 IDR miliar Increase in fair value of investmet properties Revenues

(Rp bn) 2015 2016 2017 2018 3Q19 3Q18 YoY Revenues 163.5 175.3 208.8 299.2 245.0 220.1 11% Operating profit 121.7 117.7 142.4 216.3 182.4 163.9 11% Finance Costs (51.8) (46.8) (52.3) (47.5) 38.0 33.9 11% Forex gain / loss – net (28.9) 3.3 (0.9) (9.2) 2.1

• 12.7

(116%) Changes of IP fair value 64.8 323.3 217.2 144.3 107.4

• 100%

Final Income Tax (16.3) (17.6) (20.9) (30.0) (24.6) (22.1) (11.4%) Profit before Income Tax 114.7 399.2 293.1 281.3 225.0 101.3 122% Income tax

• (0)

(0) (0) (0.0) (0.0) (17%) Net income (loss) 114.7 399.2 293.1 281.3 224.3 101.3 121%

Summary of profit and loss

Summary of profit and loss statement

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.

Asset yield Component of value creation

16.8% 15.2% 17.1% 17.6% 13.3% 12.4% 12.0% 8.7% 7.8% 8.7% 8.4% 7.5% 7.5% 7.2% 0.0% 5.0% 10.0% 15.0% 20.0%

• 1,000

2,000 3,000 4,000 5,000 2013 2014 2015 2016 2017 2018 Q3 2019 IP at cost IP at fair value Yield to cost Yield to fair value

48

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 0.14x at the end of September 2019.

(Rp bn) 2014 2015 2016 2017 2018 Q3' 19 Cash & cash equivalent 11 383 105 201 152 142 Current asset (a) 82 519 200 390 398 474 Investment properties 2,037 2,388 3,319 4,592 5,270 6,004 Non current asset (b) 2,056 2,685 3,766 4,972 5,693 6,213 Total asset (a+b) 2,139 3,204 3,966 5,363 6,091 6,688 Short term liabilities (c) 137 176 235 294 297 571 Long term liabilities (d) 554 478 446 399 486 584 Debt 597 587 520 526 579 801 Total liabilities (c+d) 691 653 682 693 783 1,155 Paid in capital 400 571 571 689 689 689 Retained earnings 816 932 1,273 1,525 1,745 1,869 Total equity 1,448 2,551 3,284 4,670 5,308 5,532 0.41x 0.23x 0.16x 0.11x 0.11x 0.14x 0.00x 0.05x 0.10x 0.15x 0.20x 0.25x 0.30x 0.35x 0.40x 0.45x

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 2014 2015 2016 2017 2018 Q3' 19 Investment Porperty Debt Equity Debt-to-Equity

49

753 986 527 516 672 2016 2017 2018 3Q19 3Q18 2,551 3,284 4,670 5,308 5,532 5,308

• 1,000

2,000 3,000 4,000 5,000 6,000 2015 2016 2017 2018 3Q19 3Q18 122.9 120.8 145.9 220.2 185.9 166.9

• 50.0

100.0 150.0 200.0 250.0 2015 2016 2017 2018 3Q 19 3Q 18

163.5 175.3 208.8 299.2 245.0 220.1 2015 2016 2017 2018 3Q 19 3Q 18

Summary of financial position

Revenues, Rp bn

EBITDA, Rp bn

Equity, Rp bn

Gross Capital Expenditure, Rp bn

(Rp bn)

50 2014 2015 2016 2017 2018 3Q 19 Operational metric Net Leasable Area, m2 Built to suit 111,900 117,520 117,520 185,355 185,355 206,070

Multi tenants 46,237 52,011 46,391 45,015 115,325 115,325 Total, m2 158,137 163,911 163,911 230,370 300,680 321,395 Occupancy rate, % Built to suit 98% 97% 100% 100% 100% 100% Multi tenants 98% 97% 100% 99% 99% 97% Average occupancy rate, % 98.0% 97.0% 99.9% 99.9% 99.4% 99.0% Average remaining lease term, years 6.5 6.0 5.4 5.4 4.4 4.4 Revenue by segment Revenue, Rp bn Rental built to suit 99,160 99,922 106,313 137,015 188.718 116,100 Rental multi tenants 42,758 63,570 69,006 72,452 110.516 128,925 Total revenues, Rp bn 141,918 163,492 175,320 209,467 299,234 245,025

Key performance matrix

Net leasable composition area As of 30 September 2019

Built To Suit 48% Multi Tenant 52%

51

Section 6

Assets in Details

52

Location MMP’s logistic properties and pipeline

(in km) Intirub Business Park Unilever Mega DC Li & Fung Selayar Lazada Block AE Cileungsi Cibatu DS III Distance to Jakarta 32 31 32 22 32 26 35 47 Distance to Tanjung Priok port 22 44 43 44 43 44 41 51 57 Distance to International Airport 39 66 65 66 60 66 59 73 74

T anjung Priok Seaport Industrial E state E x pansion Area Halim PK Airport

Pondok Ungu warehouse Lazada Warehouse Cileungsi Warehouse Intirub Business Park

Jababeka MM2100

Cibatu Warehouse Block AE Warehouse LF Warehouse Selayar Warehouse Unilever Warehouse Block H Warehouse

Delta Silicon

Airport warehouse

Soekarno-Hatta Int’l Airport Toll Road in operation Toll Road under construction

53

Tanjung Perak Port Juanda Air Port

Toll Roads

In Operation Under construction Planning In (Km) Manyar Warehouse Distance to Surabaya 31 Distance to Airport 52 Distance to Tanjung Perak Port 29

Location MMP’s logistic properties and pipeline

MMP prope

• pertie

rties

54

Unilever Mega DC Warehouse

Location : MM2100 industrial estates, West Cikarang, Bekasi Land area : 197.690 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.

55

Li & Fung Warehouse

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

56

Intirub Busines Park I & II Warehouse

Intirub Business Park Location : Halim, East Jakarta Land area : 60.575 m2 Gross floor area : 53.305 m2 (warehouse) + 11.151 m2 (office) NLA : 36.622 m2 (warehouse) + 8.393 m2 (office) Floor capacity : up to 4,5 ton per m2 Ceiling height : 10 m (IBP I) 9 m (IBP II) Warehouse specification : warehouse with semi basement, 3 floor office and parking area Special specifications : 5 loading dock levelers (IBP I) 10 loading dock levellers (IBP II) Tenants : DHL, ARK/Ingram, Yokogawa, aCommerce (warehouse), Bank BNI46, DHL, Mahadasha, Scan Global (office). Grundfos, DHL, ARK, MHE-Demag (warehouse), Grundfos, Deraya, MHE-Demag (office)

58

57

Selayar Warehouse

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 : Windu Persada Cargo

58

Lazada Phase I Warehouse

Location : Tapos, Depok Land area : 90.041 m2 NLA : +/- 67.000 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 (phase 2)

59

Cibatu Warehouse

Location : Scientia Boulevard, Jababeka V Cikarang Land area : 50,000 m2 Net Leasable Area : 36,335 m2 Lease period : 10 years Tenant : Ark Logistics Estimated Completion Year : 2017

Architectural & Structural Specification:

• Floor Load Capacity

: 4 ton/m2

• Foundation

: Concrete Pile

• Floor

: Reinforced Concrete

• Column

: Tappered Steel Column

• Roof Structure

: Tappered Steel Beam

• Floor Flatness

: Superflat

• Effective Ceiling Height

: 12 m

• Wall

: AAC Wall + Metal Cladding

• Roof

: Boltless Metal Roof + Insulation

• Loading Door

: 19 Units

• Canopy Width

: 13 m Mechanical/Electrical Specification:

• Sprinkler

: Yes

• Smoke Detector

: Beam Detector

• Artificial Lighting

: 100 lux (Warehouse)

• Generator Set

: 400 KVA

60

Building value delivering result

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

61

Block AE Warehouse

Location : MM2100 Industrial Estates, West Cikarang, Bekasi Land Area : 35,740 m2 Net Leasable Area : 38,854 m2 Completion Year : 2018

Cawang Intersection Cikunir Intersection MM2100 Industrial Estate

Architectural & Structural Specification:

• Floor Load Capacity

: 4 ton/m2 (Ground Floor) 3 ton/m2 (Upper Floor)

• Foundation

: Concrete Pile

• Floor

: Reinforced Concrete

• Column

: Reinforced Concrete

• Roof Structure: Steel Truss
• Floor Flatness : Flat
• Effective Ceiling Height

: 9 m (Ground Floor) 8 m (Upper Floor)

• Wall

: AAC Wall + Metal Cladding

• Roof

: Boltless Metal Roof + Insulation

• Loading Doors

: 48 Units

• Canopy Width

: 10 m (Ground Floor) 8 m (Upper Floor) Mechanical/Electrical Specification:

• Sprinkler

: Yes

• Smoke Detector

: Beam Detector

• Artificial Lighting

: 120 lux (Warehouse)

• Generator Set

: 300 KVA

62

Cileungsi Warehouse

Location : Jl Raya Narogong KM 17, Cielungsi Land area : 50,004 m2 Net Leasable Area : 31,456 m2 Lease period : 10 years Tenant : Ark Logistics Completion Year : 2018 Mechanical/Electrical Specification:

• Sprinkler

: yes

• Smoke Detector

: yes (laser beam detector

• Artificial Lighting

: 120 lux – 150 lux

• Generator Set

: on design process (around 50% of total power needed) Architectural & Structural Specification:

• Floor Load Capacity

: 2 ton (staging area) & 5 ton (storage area)

• Foundation

: Concrete Pile

• Floor

: Reinforced Concrete Slab

• Column

: Reinforced Concrete Column

• Roof Structure

: Steel Structure (Truss System)

• Floor Flatness

: FF30 FL 20

• Effective Ceiling Height

: 12 m

• Wall

: AAC Wall + Corrugated Metal Cladding

• Roof

: Corrugated Metal Roof (boltless system) with insulation Loading Door

• Loading Door

: 24 (outbond) + 12 (inbound)

• Canopy Width

: 10 - 12 m

63

Delta Silicon III

Location : Delta Silicon 3, Cikarang Land area : 100.000 m2 NLA : +/- 67.475 m2 (phase 1, 2 and 3) Lease period : 10 years Floor capacity : 4 ton per m2 Ceiling height : 14 m Tenant : DHL Specification: Floor : Reinforced Concrete, flatness FF30 FL 25 Foundation : Concrete pile with pile‐cap Slab/Column/Beam : Steel Truss Canopy : Steel Truss

64

Section 7

Other Financial Info

65

Audited Balance Sheet

In Rp mn 2014 2015 2016 2017 2018 3Q19* % YTD Cash and Equivalents 11,311 382,973 104,683 201,516 152,175 141,567

• 7.0%

Other current assets 57,381 127,100 92,962 189,163 245,981 332,731 35.3% Property & equipment 2,107 13,483 13,342 12,327 11,917 9,106

• 23.6%

Investment properties 2,036,806 2,388,400 3,318,776 4,592,009 5,693,167 6,003,658 13.9% Other non-current assets 17,183 283,590 433,700 368,645 411,671 200,680

• 51.3%

Total assets 2,138,502 3,204,321 3,965,769 5,363,669 6,091,323 6,687,743 9.8% ST unearned revenue 23,528 25,281 42,641 25,398 47,993 124,550 159.5% Bank loans - short term 35,636 124,911 89,859 164,117 159,905 257,542 61.1% Other current liabilities 77,433 25,276 102,648 104,997 88,742 188,717 112.7% Bank loan 541,288 460,646 427,901 361,161 419,068 543,905 29.8% LT unearned revenue

• 2,743

10,725 35,656 2,970

• 91.7%

Other long term liabilities 12,762 17,180 15,717 27,081 31,731 37,578 18.4% Total Liabilities 690,647 653,294 681,509 693,479 783,096 1,155,261 47.5% Minority interest 2,673 2,916 393,675 885,106 1,302,443 1,402,698 7.7% Equity (exc. Minority) 1,445,182 2,548,111 2,890,585 3,785,083 4,005,784 4,129,784 3.1%

*) : Unaudited

66

Audited Profit and Loss Statement

In Rp mn 2014 2015 2016 2017 2018 3Q '19* 3Q '18 % Y/Y Revenue 141,918 163,492 175,320 208,794 299,234 245,025

220,134 11.3%

Cost of revenue 13,084 16,059 18,444 20,146 25,396 20,341

18,856 7.9%

Gross profit 128,834 147,432 156,875 188,647 273,838 224,684

201,278 11.6%

G&A 14,616 25,754 39,143 46,202 57,539 20,341

37,352

• 45.5%

Operating profit 114,218 121,677 117,732 142,445 216,299 204,343

163,926 24.7%

EBITDA 115,031 122,852 120,756 145,984 220,184 185,858

166,894 11.4%

Net interest income (expense) (42,818) (23,640) (29,262) (47,363) (39,377) (32,442)

(27,116) 19.6%

Increase in fair value Invt Prop 261,127 64,787 323,288 217,211 144,270 107,388

• 0.0%

Other items (23,165) 31,822 5,073 (1,272) (668.9) (7,804)

(13,157)

• 40.7%

Profit before tax 309,363 131,003 416,831 314,051 311,325 200,397

123,652 62.1%

Income Tax (14,192) (16,349) (17,624) (20,986) (30,011) (24,594)

(22,388) 9.9%

Proforma adjustment (8,482)

• Net income (after NCI)

286,404 114,415 342,166 252,262 281,313 123,999

77,425 60.2%

*) : Unaudited

67

Audited Cashflow

Rp mn 2016 2017 2018 3Q '19* 3Q'18* % Y/Y Cash flow from operating activities Cash Receipt from Customer 221,769 226,867 348,340 330,543 298,434 11% Payment to Supplier and Others (90,742) (174,166) (126,417) (149,688) (96,125) 56% Tax paid (20,404) (20,594)

• 30,229

(29,717) (26,466) 12% Interest paid (30,270) (47,861) (55,451) (41,563) (28,320) 47% Net cash provided by operating activities 80,353 (15,754) 136,243 109,576 147,523

• 26%

Cash flow from investing activities 0% Acquisition of Investment Properties (621,109) (988,416) (326,807) (668,214) (227,921) 193% Other investment activities (5,079) (4,006) (257,800) (320,880) (248,765)

• 229%

Net Cash Used in Investing Activities (626,187) (992,422) (584,607) (347,334) (476,686)

• 27%

Cash flow from financing activities 0% Loan Receipts from Bank 61,239 97,653 294,577 359,610 74,467 383% Payment to Bank Loan (128,967) (92,214) (246,630) (132,176) (138,332)

• 4%

Receipt from Paid in Capital 334,002 1,113,967 356,603 (279) 302,853

• 100%

Others (702) (14,391) (5,483) (553) (1,708)

• 68%

Net Cash provided by Financing Activities 265,573 1,105,014 399,067 227,159 237,280

• 4%

Net increase (decrease) in cash and cash equivalents (280,262) 96,838 (49,297) (10,599) (91,883)

• 88%

Effect of foreign exchange, net (228.) (4) (45) (8)

• 2269%

Cash and cash equivalent of subsidiaries - before acquisition 2,200 0% Cash and cash equivalent, beginning balance 382,973 104,683 201,516 152,175 201,516

• 24%

Cash and cash equivalent ending balance 104,683 201,516 152,175 141,567 109,634 29% *) : Unaudited

68

PT Mega Manunggal Property Tbk