Company Presentation 8.2017 Bringing Dreams to Life 1 Disclaimer - PowerPoint PPT Presentation

Company Presentation 8.2017 Bringing Dreams to Life 1

Disclaimer By attending this presentation, you are agreeing to be bound by the restrictions set out below. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. The information and opinions contained in this presentation are intended solely for your personal reference and are strictly confidential. The information and opinions contained in this presentation have not been independently verified, and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of, the information or opinions contained herein. It is not the intention to provide, and you may not rely on this presentation as providing, a complete or comprehensive analysis of the condition (financial or other), earnings, business affairs, business prospects, properties or results of operations of the company or its subsidiaries. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. The company (including any of its affiliates, advisors and representatives) shall have any responsibility or liability whatsoever (in negligence or otherwise) for the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein nor for any loss howsoever arising from any use of this presentation. In addition, the information contained in this presentation contains projections and forward-looking statements that reflect the company's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change overtime and in many cases are outside the control of the company and its directors. No assurance can be given that future events will occur, that projections will be achieved, or that the company's assumptions are correct. Actual results may differ materially from those forecast and projected. This presentation is not and does not constitute or form part of any offer, invitation or recommendation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. This presentation may not be used or relied upon by any other party, or for any other purpose, and may not be reproduced, disseminated or quoted without the prior written consent of PT Megapolitan Developments Tbk. 2

Table of Contents Page I. Megapolitan Developments at a Glance 4 II. Q2 Financial Updates 12 III. Project Updates 20 IV. NAV Guidance from Management 28 Appendix I : Key Investment Highlights 32 Appendix II : Portfolio Highlights 41 Appendix III : Others 53 3

I. Megapolitan Developments at a Glance

The Premier Property Development Company Group Overview PT Cosmopolitan Persada Lora Melani Lowas Barak Sudjono Barak Rimba Public Developments Rimba 66.78% 3.93% 3.93% 25.36% 99.66% 99.38% 99.00% 99.58% 99.95% 40% PT Mega PT Graha Mentari PT Tirta Persada PT Megapolitan PT Mega Limo Estate Pasanggarahan PT Titan Property Persada Developments Mentari Persada (MLE) Indah (TP) (GMP) (TPD) (MMP) (MPI) Bukit Cinere Megapolitan Sentul City Griya Cinere 5

Our Projects are Situated in Emerging Prime Districts of Greater Jakarta * Karawaci * Kuningan Cinere Sentul 10km 6 * Past Projects

Our Longstanding Track Record since 1970s Centro Cinere • Cinere Bellevue Mall • Cinere Bellevue Suites • Cinere One Residence • Cinere One Commercial Park Cinere Park View • Puri Cinere PT Megapolitan • Griya Cinere 2 Developments Vivo Sentul • Mal Cinere Corporation was • Vivo Mall • Mega Sentul • Bukit Griya Cinere established as • Vivo Walk • The Habitat • Graha Laguna property agent • Galleria Kiosk Mall @Karawaci • Bizpark @Vivo Sentul 1976-1979 1980-1986 1987-1997 1998-2004 2005-2008 2009-2011 2012-now PT Megapolitan • Bellagio Residence • Megapolitan Cinere Estate Developments Tbk • Griya Cinere 1 & Mall (EMDE) listed its • Bellagio Mansion • Cinere Country shares on IDX • Tatya Asri • Cinere Riverside 7

General Corporate Information Megapolitan Developments Tbk (EMDE.IJ) Incorporation Date : 10 September 1976 IPO Date : 12 January 2011 IPO Price : Rp 250 IPO Share : 850.00mm IPO Amount : Rp 212.5bn _______________________________________________________________________ Share Capital @30 June 2017 : Total Shares In Issue : 3,350,000,000 @Rp 100 : Total Paid-Up : Rp 335bn _______________________________________________________________________ Total Value Rupiah per shares Market Capitalization @ 31 July 2017 Rp 898bn Rp 268 Book Value Rp 704bn Rp 214 _______________________________________________________________________ Shareholder Profile : Founders & Associates 74.64% Public 25.36% 8

II. Q2 Financial Updates

The Recovery Momentum Has Started… Good Signals from the Revenue and Marketing Sales Recovery in Marketing Sales (IDR bn) 1 Stable Revenue Growth (IDR bn) 2011-2016 Q2 2016-7 577 330.4 325.3 5Y CAGR 27% 311.3 YoY CAGR 12% 387 225.1 363 Revenue 322 310 148.4 132.4 199 109.0 99.4 174 2012 2013 2014 2015 2016 2017F 2011 2012 2013 2014 2015 2016 Q2 2016 Q2 2017 The Company is experiencing recovery in marketing In Q2 2017, the company achieved a double digit sales growth since 2015 with the Q2 2017 results growth in revenue, driven by the apartment sales in are still relatively on track 2 with the management Cinere (↑ 647% YoY), commercial sales in Sentul budget (no revision), largely driven by residential in (↑ 97% YoY) Cinere (37% of revenue) and commercial space in Sentul (19% of revenue). Rental revenue from shopping malls has been growing slightly above inflation (↑ 7% YoY) With the current development Cinere Terrace providing good cushion while EMDE sustains the Suites, De Vonte, and Vivo Sentul, the marketing market recovery sales are expected to grow steadily. 10 Notes: 1 2017 marketing sales are from management target 2 In Q2 017, the realized marketing sales: IDR 174bn

Good Balance of Recurring and Development Income Revenue Breakdown Q2 2017 Revenue Breakdown Recurring Income Non-recurring Income (in IDR bn) Landed House Commercial Cinere Parkview 26.7 43.1 Rental 18% 29% 28.6 House 19% Apartment 49.9 Cinere mall 34% Apartment Expected Addition in 2018: Cinere Terrace Suites Cinere Bellevue Mall Cinere Terrace Mall and suites Commercial Hotel Kiosk Galleria Vivo Sentul 13% Vivo Vivo Cinere Bellevue Suites Mall Walk 11

Portfolio Diversification Lead to a Stable Profitability Stable Gross Profit with Steady Net Income Growth Stable Gross Profit (IDR bn) Steady Net Income Growth (IDR bn) 2011-2016 Q2 2016-7 2011-2016 Q2 2016-7 Net Income 65.5 5Y CAGR 101% 61.3 5Y CAGR 27% 199.0 192.7 CAGR 6.9% CAGR 4.9% 45.1 157.4 Gross Profit 34.0 115.3 27.9 26.5 88.8 84.6 63.6 58.9 4.2 2.0 2011 2012 2013 2014 2015 2016 Q2 2016 Q2 2017 2011 2012 2013 2014 2015 2016 Q2 2016 Q2 2017 In Q2 2017, Megapolitan gained more revenue Opex is under control with main increase in from apartment than previous period with 18% G&A expenses (↑ 13.0% YoY) mainly of sales are from apartment sale vs 2.7% in Q2 attributable to salary increases. 2016. While the FY 2016 gross profit was slightly The COGS of apartment are mostly driven by lower than the previous year, Megapolitan was construction cost since land was acquired still able to book a growing net income at Q2 before the property market boom (circa 2007), 2017 and achieved a 5Y CAGR of 101%. resulting in overall increase of 25% YoY in COGS. 12

Income Statement Income Statement 30-Jun-16 30-Jun-17 ∆ YoY (%) Revenue 132,392,178,386 148,358,785,015 12% Commercial 19,529,075,455 43,142,696,608 121% Rental 46,612,332,886 49,888,255,914 7% Houses 62,672,868,954 28,590,852,857 -54% Apartment 3,577,901,091 26,736,979,636 647% COGS (47,770,944,349) (59,573,675,974) 25% Commercial (6,346,679,157) (14,569,211,061) 130% Rental (18,082,346,391) (20,229,158,520) 12% Houses (21,985,950,467) (9,145,454,080) -58% Apartment (1,355,968,334) (15,629,852,313) 1053% Gross Profit 84,621,234,037 88,785,109,041 5% Commercial 25,875,754,612 57,711,907,669 123% Rental 64,694,679,277 70,117,414,434 8% Houses 84,658,819,421 37,736,306,937 -55% Apartment 4,933,869,425 42,366,831,949 759% Selling Expenses (6,054,736,116) (7,987,324,787) 32% G&A (32,069,269,039) (36,223,805,626) 13% Net Interest Expense (15,746,100,093) (14,070,905,035) -11% Final Income Tax (6,936,189,401) (5,607,739,451) -19% Other Income (Expenses) (2,715,367,837) (2,991,537,554) 10% Net Income 26,530,307,225 27,886,871,696 5% 13