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PT MD PICTURES Tbk November 2018

Disclaimer This report has been prepared by PT MD Pictures Tbk independently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this report. The information in this report has been obtained from sources which we deem reliable. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without prior notice. We disclaim any responsibility or liability (expressed or implied) of PT MD Pictures Tbk and/or its affiliated companies and/or their respective employees and/or agents whatsoever and howsoever arising which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither PT MD Pictures Tbk and/or its affiliated companies and/or their respective employees and/or agents accepts liability for any errors, omissions or miss- statements, negligent or otherwise, in this report and any inaccuracy herein or omission here from which might otherwise arise.

Table of Contents Industry Overview Industry Overview •4 •4 Company Overview Company Overview •10 •10 Financial Highlights Financial Highlights •27 •27 Looking Ahead Looking Ahead •37 •37

Indonesia Industry Overview HIGH POPULATION AND INCREASE IN INCOME LEADING TO HIGHER MARKET DEMAND Population of Indonesia in 2017 was 261.9 million, estimated to be 265.5 million in 2018 2017 GDP per capita was IDR 51.9 million, estimated to be IDR 56.1 million in 2018. GROWTH IN MOVIE INDUSTRY AND HIGHER REVENUE IN CINEMA TICKETS Revenue in the cinema tickets segment amounts to US$68m as of November 2018. Cinema ticket revenue is expected to show an annual growth rate (CAGR 2018-2023) of 18.1%, resulting in a market volume of US$156 million by 2023. MOVIE VIEWERS PROJECTED TO INCREASE BY 38% IN THE NEXT 5 YEARS Number of viewers is expected to be 30.2 million in 2023 compared to 21.9 million in 2018 an increase in 38% over the next 5 years. The average revenue per user (ARPU) spent on cinema tickets currently amounts to US$3.10 Source: Statistics, BPS

Spending on Indonesian Movies 2017 Rp.38.012 1.6 T 2016 Rp.35.000 1.3 T 2015 2008 2009 Rp.35.000 2014 Rp.13.000 569.1 B Rp.14.000 427.7 B 2012 Rp. 33.000 400.1 B 523.8 B 2010 2011 Rp.22.000 2013 419 B Rp.15.000 Rp.21.000 Rp.30.000 239.4 B 340.1 B 384.5 B Total number of viewers Spending Despite rising ticket prices, there is an increase in spending on local films Source: filmindonesia.org,2018

Total Number of Screens 2020 2500 2019 2100 2018 1750 2017 2016 1412 2015 1192 2014 1125 2013 2012 943 829 774 Total numbers of screens Source: CGV,2018 The total number of screens in Indonesia are projected to rise by over 40% in the next 2 years

Total Audience of Indonesian Films Total of viewers(MD) : 10.4 mio 2017 2008 42,724,610 (Indonesian Films) 2016 32,897,784 2009 37,227,428 28,581,051 2015 16,260,972 2012 19,040,945 2013 12,816,786 2007 2010 2011 2014 15,623,893 15,959,371 15,644,265 15,515,716 In 2017, the local film market share was 38% and as many as 119 local films were released Total number of viewers The numbers in 2018 are estimated to go up to approximately 41% Source: filmindonesia.org, 2018

OUR OPPORTUNITIES + Increasing number of screens + Increasing number of viewers + Increasing spend on entertainment + Other supporting factors including high market potential for digital businesses and removal of the film industry from Negative Investments list

Profile MD PICTURES - Film Production MD PLACE - Unique, cutting edge building symbolizing the living and growing nature of the company - Houses MD Music and MD Entertainment offices - Houses award winning restaurants such as Akira Back, Valentino and AB Steak STUDIO 7 - Develop sound stages and extensive filming facilities

WHAT DO WE STAND FOR? VISION Our vision is for the stories we tell to inspire, and find a place in the homes, hearts and memories of audiences worldwide. MISSION Our mission is to be a front-runner in the local film industry and launch globally by working together collaboratively to innovate, create and consistently produce high value films. VALUES Innovation, Collaboration, Integrity & Passion

Management Team Bachtiar Effendi Dhamoo Punjabi Sanjeva Advani President Commissioner Independent Commissioner Commissioner Manoj Punjabi President Director Soundararajan Venkatachari Shania Punjabi Sanjay Mulani Director Director Independent Director

Corporate Structure Public Shares 13.92% PT MD Global Media 22.79% PT MD Graha Utama 63.29%

MD Group A part of a much larger synergy

Milestones 2002 2005 2008 2018 MD Entertainment began to top the ratings charts and legendary titles emerged. “ONE STOP SHOP” Creation of MD MD Pictures MD pioneered the concept entertainment concept Animation took the IPO on of daily shows expanded industry by storm August 7 th MD Entertainment Integration MD Pictures shattered all was born strategy began time Indonesian movie box office records, initiating a historical shift in the industry 2004 2007 2012

Our Core Business One of the few companies in Indonesia that does the whole process internally Film Value Chain MARKETING Acquisition & PRODUCTION Investment Distribution Theatrical Release CONTRACT Secure SCREENPLAY Digital Distribution TALENT Financing Broadcast Licensing Home Video

Competitive Advantage MARKETING + In 2015, our film Surga Yang Tak Dirindukan changed film marketing in Indonesia + Digital marketing became a norm TALENT MANAGEMENT + Top artists and specialists (such as directors and writers) are on exclusive contracts with MD + MD is associated with commercial success and scale CONVEYOR BELT MODEL + Allows for increased scale and number of films + Easy to replicate models for consistency and efficiency

One Stop Shop Scale: Synergy: Steady increase in number of movies allows for Capitalize on other the specialization of other preferential and exclusive deals. companies. Sales: Success: Increased revenue as a result of increased Our box office successes and awards have viewership of our films. helped synonymize our brand with success.

MD Pictures’ Exceptional Concepts #1 IN 2012 #4 IN 2017 #2 IN 2008 #1 IN 2015 4.583.641 viewers 2.736.157 3.676.135 viewers 1.523.617 viewers viewers

Franchise Value #2 MARCH 2018 #7 IN 2017 #6 IN 2016 #3 IN 2017 2.572.133 1.637.472 viewers viewers 2.012.025 viewers 2.840.159 viewers

2018 Top Box Office Hits 1.680.037 Viewers 2.572.672 Viewers 900.362 Viewers

Awarded to the company that achieves the highest number of viewers

MD Pictures Track Record TOTAL NUMBER OF MOVIES PRODUCED AND ANNUAL NUMBER OF VIEWERS 2014-2017

Ranked Highest in Viewers & Movies Produced 2017 : MD PICTURES’ COMPETITIVE POSITION BASED ON ‘HIT RATIO’ TOTAL NUMBER OF VIEWERS (TOP 15 FILMS) Size of bubble represents the number of films on the Top 15 most watched films list (2017) TOTAL NUMBER OF MOVIES IN 2017 Source: filmindonesia.org, 2018

Leading with Higest Market Share MARKET SHARE 2017 OTHERS 24.1% Source: filmindonesia.org, 2018

Award Highlights 2018 IBOMA Producer of the Year 2017 Producer of the Year Most Favorite TV film 2016 Best Selling Movie of the Year 2015 All Time Box Office Success Best Visual Effects 2013 Movie of the Year 2008 Best Film Editors Choice Award 2008 Most Appreciated Film of the Year 2007 Best Indonesian Language and many more !

Strong Balance Sheet with a leap in Total Assets and decline Total Liabilities IDR million 3Q 2018 2017 YOY Current Assets 351,985 34,876 909% Fixed Assets 1,033,113 166,508 520% Total Assets 1,385,098 201,384 588% Current Liabilities 47,836 53,454 -11% Non-Current Liabilities 6,851 1,598 329% Total Liabilities 54,687 55,052 -1% Total Equity 1,330,411 146,332 809%

Excellent Operations with Solid Financial Performance Jump in Revenue and increase in Net Income 3Q 2018 3Q 2017 YOY Revenue 232,788 139,478 67% Cost of Sales (53,497) (34,765) 54% Gross Profit 179,291 104,713 71% Operating Cost (57,056) (22,392) 155% Operating Profit 122,235 82,321 48% Other Income 3,735 390 858% Other Cost (42) (54) -22% Other Income, Net 3,693 336 999% EBIDTA 125,928 82,657 52% Net Income 96,677 74,342 30%

Revenue Stream Others Building Rental Film 0.90% 5.92% Equipment DVD & VCD Rental 0.08% 0.09% Film DVD & VCD Others Television Television 0.17% 0.39% Equipment 1.49% 6.68% Rental 1.45% Digital Digital Widescreen 4.24% 22.89% 68.64% Widescreen 87.06% Q3 2018 Q3 2017 Shift in revenue contribution, 19% increase in digital sales 67% increase in revenue IDR 139.5 billion IDR 232.8 billion

Earnings Growth Gross Profit & Gross Margin % Net Sales IDR Mil IDR Mil 77,02% 69,85% 59,79% 47,97% 232,788 179,291 153,719 107,379 80,748 59,205 38,733 35,397 2015 2016 2017 Q3 2018 2015 2016 2017 Q3 2018