Toll Roads INDONESIA

January 5, 2012

Jasa Marga
JSMR IJ / JSMR JK Current Rp4,375 Rp5,500 Rp5,500 25.7%
SHORT TERM (3 MTH) LONG TERM

Market Cap

Avg Daily Turnover

Free Float

Target Previous Target Up/downside

US$3,253m
Rp29,750,000m

US$2.63m
Rp23,689m

30%
6,800 m shares

Convicti
Notes from the Field

Time for hustling

The main operator of toll roads will be using the momentum of the new land law to reignite construction in seven areas in 2012, which could serve as stock catalysts.
Jasa Marga has once again entered the construction phase, potentially handling seven projects in one go. 2012 earnings could be lifted by tariff hikes in Oct 11 and the full operation of new roads. We reduce FY13 earnings on lower net interest while maintaining our DCF TP (WACC 10%).

Welcoming the new land law

There are 182km of toll roads that it plans to build in the next 2-3 years. About 70% are in various stages of land acquisition. However, with deliberation days now limited by the new land law, the company is set to finalise land clearance in 280 days, at the maximum. This suggests that seven out of nine of its projects could be finalised by 2014, faster than our 2015/16 estimates.

Lydia Toisuta
T (62) 21 30061724 E lydia.toisuta@cimb.com

We will be very busy constructing new toll roads in 2012/2013. Assuming that the land acquisition measures are on schedule, we hope that operations start in 2014.
Frans Sunito, CEO

Construction year: 2012

Jasa Marga has turned more confident after signing amended concession agreements in 2011 and moving into the construction phase. It has a series of projects set up for groundbreaking: three in 4Q11, two in Jan 12 and potentially two more in 2012. According to our calculations, at least Rp8tr worth of contracts should be under construction in 2012.

Attractive costs/returns
With its recent investment-rating upgrade and exposure to long-term bonds, cost of funds should decline in the long term vs. steady IRRs for new projects. While the stock may seem expensive compared with regional toll-road peers, we estimate a higher net-profit CAGR of 25% vs. regional peers 7%, solely on its existing projects.

Price Close

Relative to JCI (RHS) 124 120 116 112 108 105 101 97 93 89

Financial Summary
Revenue (Rpb) Operating EBITDA (Rpb) Net Profit (Rpb) Core EPS (Rp) Core EPS Growth FD Core P/E (x) DPS (Rp) Dividend Yield EV/EBITDA (x) P/FCFE (x) Net Gearing P/BV (x) Recurring ROE % Change In Core EPS Estimates CIMB/consensus EPS (x) Dec-09A 3,692 1,871 993 130.8 25.7% 33.45 52.0 1.19% 18.05 86.3 44.6% 4.14 12.9% Dec-10A 4,379 2,413 1,193 173.1 32.4% 25.27 87.6 2.00% 14.53 22.7 56.1% 3.84 15.8% Dec-11F 4,964 2,817 1,454 213.8 23.5% 20.46 103.9 2.37% 12.50 41.9 53.2% 3.51 17.9% 0.20% 1.00 Dec-12F 5,327 3,044 1,520 223.5 4.5% 19.58 128.3 2.93% 12.11 57.9 66.6% 3.26 17.2% 0.17% 0.91 Dec-13F 6,235 3,551 1,972 289.9 29.7% 15.09 134.1 3.06% 10.53 129.7 64.5% 2.92 20.4% (7.71%) 1.05

4,300 3,800 3,300 30 2,800

Vol m

20 10
Jan-11 Apr-11 Source: Bloomberg Jul-11 Oct-11

52-week share price range

3,000

4,375 4,375

Current

Target

5,500

SOURCE: CIMB, COMPANY REPORTS IMPORTANT DISCLOSURES. INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT.
Designed by Eight, Powered by EFA

Jasa Marga

January 5, 2012

PEER COMPARISON

Research Coverage
Jasa Marga Bloomberg Code JSMR IJ Market ID Recommendation OUTPERFORM Mkt Cap US$m 3,253 Price 4,375 Target Price 5,500 Upside 25.7%

Rolling P/BV (x)

4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Jan-07 Jan-08 Jan-09 Jan-10 Jasa Marga Jan-11

Rolling FD Core P/E (x)

50 45 40 35 30 25 20 15 10 5 0 Jan-07 Jan-08 Jan-09 Jan-10 Jasa Marga Jan-11

Peer Average: P/BV vs Recurring ROE

4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 20% 18% 15% 13% 10% 8% 5% 3% 0% Rolling P/BV (x) (lhs) Recurring ROE (rhs)

Peer Average: FD Core P/E vs FD Core EPS Growth

50 45 40 35 30 25 20 15 10 5 0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 160% 138% 116% 94% 72% 50% 28% 6% -16% -38% -60% Rolling FD Core P/E (x) (lhs) FD Core EPS Growth (rhs)

Valuation
Jasa Marga FD Core P/E (x) Dec-10 Dec-11 25.27 20.46 Dec-12 19.58 Dec-10 3.84 P/BV (x) Dec-11 3.51 Dec-12 3.26 Dec-10 14.53 EV/EBITDA (x) Dec-11 12.50 Dec-12 12.11

Growth and Returns

Jasa Marga FD Core EPS Growth Dec-10 Dec-11 32.4% 23.5% Dec-12 4.5% Recurring ROE Dec-10 Dec-11 15.8% 17.9% Dec-12 17.2% Dividend Yield Dec-10 Dec-11 2.00% 2.37% Dec-12 2.93%

SOURCE: CIMB, COMPANY REPORTS

Calculations are performed using EFA Monthly Interpolated Annualisation and Aggregation algorithms to December year ends

Jasa Marga

January 5, 2012

BY THE NUMBERS

Share price info

Share px perf. (%) Relative Absolute Major shareholders Indonesian Government 1M 11.7 15.1 3M 0.4 19.9 12M 20.2 24.1 % held 70

P/BV vs Recurring ROE

4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Jan-07 20% 18% 15% 13% 10% 8% 5% 3% 0% Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

FD Core P/E vs FD Core EPS Growth

50 45 40 35 30 25 20 15 10 5 0 Jan-07 200% 175% 150% 125% 100% 75% 50% 25% 0% -25% -50% Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Rolling P/BV (x) (lhs)

Recurring ROE (rhs)

Rolling FD Core P/E (x) (lhs)

FD Core EPS Growth (rhs)

Profit & Loss

In line with recently announced FY11 revenue of Rp4.9tr. Tariff hikes in 4Q11 should have been responsible, among others

(Rpb) Revenue Cost Of Sales Gross Profit Total Operating Costs Operating Profit Operating EBITDA Depreciation And Amortisation Operating EBIT Net Interest Income Exchange Gains Other Income Associates' Profit Profit Before Tax (pre-EI) Exceptional Items Pre-tax Profit Taxation Profit After Tax Minority Interests Net Profit Recurring Net Profit

Dec-09A 3,692 (1,528) 2,164 (647.8) 1,516 1,871 (354.5) 1,516 (445.5) 23.13 1,094 125.0 1,219 (211.7) 1,007 (14.51) 993 889

Dec-10A 4,379 (1,647) 2,732 (743.8) 1,988 2,413 (424.9) 1,988 (532.1) 20.21 1,476 0.0 1,476 (291.9) 1,184 8.99 1,193 1,177

Dec-11F 4,964 (1,793) 3,171 (772.6) 2,398 2,817 (419.2) 2,398 (548.0) 0.00 1,850 0.0 1,850 (401.0) 1,449 4.85 1,454 1,454

Dec-12F 5,327 (1,897) 3,430 (848.8) 2,581 3,044 (463.4) 2,581 (588.7) 0.00 1,992 0.0 1,992 (469.7) 1,523 (3.09) 1,520 1,520

Dec-13F 6,235 (2,229) 4,006 (932.2) 3,074 3,551 (477.7) 3,074 (478.1) 0.00 2,596 0.0 2,596 (588.5) 2,007 (35.55) 1,972 1,972

Cash Flow

75% probability for the realisation of capex in 2012, going by history

(Rpb) Pre-tax Profit Depreciation And Non-cash Adj. Change In Working Capital Tax Paid Other Operating Cashflow Cashflow From Operations Capex Disposals Of FAs/subsidiaries Acq. Of Subsidiaries/investments Other Investing Cashflow Cash Flow From Investing Debt Raised/(repaid) Equity Raised/(Repaid) Dividends Paid Net Cash Interest Other Financing Cashflow Cash Flow From Financing Total Cash Generated Change In Net Cash Free Cashflow To Equity

Dec-09A 1,219 800 (23.5) 211.7 (793) 1,414 (1,597) 0.00 177.5 (1,420) 351 (381.5) (26.68) (57) (63.2) (414) 345

Dec-10A 1,476 957 (67.7) 291.9 (980) 1,677 (1,981) 43.83 12.5 (1,925) 1,557 (656.8) 45.15 945 697.6 (859) 1,309

Dec-11F 1,850 967 128.4 401.0 (1,439) 1,908 (1,192) 0.00 0.0 (1,192) (6) (706.3) 0.00 (712) 3.3 9 710

Dec-12F 1,992 1,052 2.5 469.7 (1,214) 2,302 (2,758) 0.00 0.0 (2,758) 970 (872.5) 0.00 97 (358.5) (1,328) 514

Dec-13F 2,596 956 4.0 588.5 (1,564) 2,580 (2,071) 0.00 0.0 (2,071) (280) (911.8) 0.00 (1,192) (682.4) (402) 229

SOURCE: CIMB, COMPANY REPORTS

Jasa Marga

January 5, 2012

BY THE NUMBERS

Balance Sheet

The company should start leveraging in 2012, by a modest Rp1tr

(Rpb) Fixed Assets Intangible Assets Other Long Term Assets Total Non-current Assets Total Cash And Equivalents Inventories Accounts Receivable Other Current Assets Total Current Assets Trade Creditors Short-term Debt Other Current Liabilities Total Current Liabilities Total Long-term Debt Other Liabilities Deferred Tax Total Non-current Liabilities Shareholders' Equity Minority Interests Preferred Shareholders Funds Total Equity

Dec-09A 11,507 385.3 851.9 12,744 3,314 64.7 51.66 3,430 103.7 2,183 679.2 2,966 4,586 467.1 409.8 5,462 7,183 562.1 7,745

Dec-10A 13,695 499.3 668.2 14,862 4,012 23.6 54.92 4,090 130.3 1,439 908.6 2,478 7,258 452.6 404.0 8,114 7,740 619.5 8,359

Dec-11F 14,467 499.3 668.2 15,635 3,847 81.4 54.92 3,984 59.8 164 908.6 1,132 8,528 452.6 404.0 9,384 8,488 614.6 9,102

Dec-12F 16,762 499.3 668.2 17,930 3,170 87.4 54.92 3,312 63.2 414 908.6 1,385 9,247 452.6 404.0 10,104 9,135 617.7 9,753

Dec-13F 18,355 499.3 668.2 19,522 2,388 102.4 54.92 2,546 74.3 1,133 908.6 2,116 8,247 452.6 404.0 9,104 10,195 653.2 10,848

Key Ratios
Revenue Growth Operating EBITDA Growth Operating EBITDA Margin Net Cash Per Share (Rp) BVPS (Rp) Gross Interest Cover Tax Rate Net Dividend Payout Ratio Accounts Receivables Days Inventory Days Accounts Payables Days ROIC (%) ROCE (%) Dec-09A 10.1% 9.9% 50.7% (508) 1,056 2.04 17.4% 35.6% 4.78 18.06 11.1% 13.3% Dec-10A 18.6% 29.0% 55.1% (689) 1,138 2.60 19.8% 49.9% 3.68 25.93 12.3% 14.1% Dec-11F 13.4% 16.8% 56.8% (712) 1,248 3.50 21.7% 48.6% 3.86 19.35 13.1% 14.5% Dec-12F 7.3% 8.1% 57.2% (955) 1,343 4.17 23.6% 57.4% 5.80 11.86 12.4% 14.0% Dec-13F 17.0% 16.6% 57.0% (1,028) 1,499 5.06 22.7% 46.2% 5.56 11.26 13.3% 16.2%

Key Drivers
Avg daily traffic grth (%, main) Base tollrate/km (% chg, main) Base tollrate/vehicle (%chg, main) Avg daily traffic grth (%, 2ndary) Base tollrate/km (% chg, 2ndary) Base tollrate/vehicle (%chg, 2ndary) Avg daily traffic grth (%, tertiary) Base tollrate/km (% chg, tertiary) Base tollrate/vehicle (%chg, tertiary) Dec-09A 3.8% N/A 5.4% N/A N/A N/A N/A N/A N/A Dec-10A 3.8% N/A 14.2% N/A N/A N/A N/A N/A N/A Dec-11F 7.0% N/A 6.1% N/A N/A N/A N/A N/A N/A Dec-12F 1.8% N/A 5.4% N/A N/A N/A N/A N/A N/A Dec-13F 3.6% N/A 13.1% N/A N/A N/A N/A N/A N/A

SOURCE: CIMB, COMPANY REPORTS

Jasa Marga

January 5, 2012

Table of Contents
1. OUTLOOK 2. VALUATION AND RECOMMENDATION p.5 p.9

Opening the way

1. OUTLOOK 1.1 Road growth of 32% by 2015
Upon the completion of its nine projects by 2015/16, Jasa Margas toll assets could lengthen by 32% to 763km of the total roads under operation. The new land law has substantial ramifications for Jasa Marga, whose projects are in the process of acquiring land (70% of total length). Jasa Marga is negotiating with the government for financial support for Stage 2 development of Semarang-Solo. This will comprise 49.5km of new roads of 68% of the total new roads in the Semarang-Solo section.
Figure 1: Jasa Margas toll-road evolution
km
900 800

Notes from the Field

The land acquisition law states, more clearly and decisively, that the government is obliged to provide land.
Frans Sunito, CEO

272 159

700 600 500 400

10 536 536 536 536 545 555 410 410 410 481 448 448 448 463 463 463 581 581 581 581 581

300 200 100 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Jasa Marga existing operation Jasa Marga new project

SOURCES: CIMB, COMPANY REPORTS

1.2 Construction
Jasa Marga has a number of projects set for groundbreaking: three in 4Q11, two in Jan 12 and potentially two more in 2012. According to our calculations, at least Rp8tr worth of contracts have started construction at end-2011 or could start in 2012.

Jasa Marga

January 5, 2012

Figure 2: 2012 construction

Length (km) Under Operation construction Undeveloped date
12.5 13.9 2.0 9.7 7.6 18.5 3.0 49.6 20.3 5.2 9.7 7.6 15.5 10.6 3Q13 1Q14 1Q14 2013 2013 2013 1Q14

Project
Semarang Solo Stage 1 Section 2 Gempol-Pasuruan Section 1 Bogor Ring Road Section 2A Nusa Dua Benoa JORR W2 Surabaya-Mojokerto Section 4 Gempol-Pandaan Section 1

Operating
14.1 3.8 2.3 -

Notes
Ground breaking Nov11 Start 1Q12 Start Jan12 Started construction Dec11 Started construction Oct11 Potentially starting construction 2012 Potentially starting construction 1Q12

SOURCES: CIMB, COMPANY REPORTS

1.3 Single operator

Jasa Marga has ongoing cost-management programmes such as zero employee growth and early retirement plans. Longer term, we believe it will continue to consolidate toll-road sections where it has market leadership of networks. Jasa Marga has the largest market share of close to 75% (50% by 2015, assuming the completion of Trans Java and JORR 2). It has also been acquiring new projects that are adjacent to its existing projects. Jasa Marga is also known to have minority shares in several operating toll-road sections all over the nation. Trans Java. Jasa Marga is responsible for two projects in the Trans Java network (20% market share) that are in various project stages. It had delivered the first section of Semarang-Solo and Surabaya-Mojokerto in 2011. The latter contributed to 9M11 revenue. Surabaya-Mojokerto is in a much more advanced stage being a shorter toll road and is set for completion in 2014. Semarang-Solo is still the subject of discussions, particularly for its second stage. Feasibility will require government support. Jasa Marga is negotiating for Rp2tr of capital injection by the government for the remaining 49.5km of the toll road.
Figure 3: Trans Java network
1. CikampekPalimanan (116km)Investor:PLUS Expressway(55%) 3. KanciPejagan(35km operate2010) Investor:BakrieTollRoad 5. PemalangBatang (39km) Investor:BakrieTollRoad 7B. BawenSolo(49km) Investor:Jasamarga (60%) 8. SoloKertosono (118km) Investor:Thiess 9. KertosonoMojokerto (41km) Investor:Astratel

10. Surabaya Mojokerto(34km Operate1stsection 2011) Investor:JasaMarga (55%)

2. PalimananKanci(28.8km Operate1998) Investor:JasaMarga(100%)

4. PejaganPemalang (57.5km) Investor:BakrieTollRoad

7A. SemarangBawen(23km Operate2011) Investor:JasaMarga(60%)

6. BatangSemarang(75km) Investor:BakrieTollRoad (potential)

SOURCES: CIMB, BJPT

Jasa Marga

January 5, 2012

Greater Surabaya. Jasa Marga is building a toll road adjacent to its Surabaya toll network. It has operated Surabaya Gempol for 27 years and will add two extensions in the fork: Gempol-Pandaan and Gempol-Pasuruan. Both will be under construction in 2012. Groundbreaking for Gempol-Pandaan should take place in Jan 12. JORR 2. Two of Jasa Margas toll sections in JORR 2 are set for operation in 1H14, assuming 1.5 years of construction, with a total length of 26.4km. At the current pace of land acquisition and taking into account the new land law, the two sections should finish land clearing by 3Q12 and directly start construction thereafter.
Figure 4: JORR 2 network
7.TjPriokAcess(12km) Investor:Departmentof PublicWorks 6.Cibitung Cilincing(34.5km) Investor:MTD

1.Kunciran Cengkareng (15.2km) Investor:JasaMarga

2.KunciranSerpong (11.2km) Investor:JasaMarga andAstratel 3.SerpongCinere (10.1km) Investor:ThiessWaskita

4.Cinere Cimanggis (14.7km) Investor:KompasWaskita

5.Cimanggis Cibitung(25.4km) Investor:BakrieToll Road(potential)

SOURCES: CIMB, BJPT

There are several other projects in the Trans Java and JORR 2 networks that interest Jasa Marga. However, with the current pipeline, we think acquisitions will happen later than sooner unless the government intervenes, such as in Trans Java.

1.4 More to come after 2015

We think Jasa Margas premium should continue after 2015 considering the number of projects that the government is offering. Aside from Trans Java and JORR 2, the government has announced 2,000 km of toll roads for Sumatera and Kalimantan (not included in the table below). Combined with balance-sheet capability, we believe Jasa Marga will continue to acquire new projects.

Jasa Marga

January 5, 2012

Figure 5: Jasa Marga has yet to announce any intention to participate in the following projects

Investment cost Link Priority project Medan-Kualanamu Palembang-Indralaya Tegineneng-Babatan Medan-Binjai (Rpbn) 1,350 1,053 2,727 1,293 (US$m) 150 117 303 144 567 206 114 281 773 1,085 473 636 820 662 769 938 624 587 1,137 642 911 102 399 100 33 676 259 559 889 244 15,197

Length (km) 18 22 50 16

Status Land acquisition process Investment tender Project award Tender preparation Tender preparation Tender preparation

Remarks As of Dec11 is on financial closing process

Cileunyi-Dawuan 5,102 Sukabumi-Ciranjang 1,856 Pasirkoja-Soreang 1,022 Pandaan-Malang 2,528 Kemayoran-Kampung Melayu 6,954 Sunter-Batu Ceper 9,761 Ulujami-Tanah Abang 4,255 Ps. Minggu-Casablanca 5,720 Sunter-Tembelang 7,378 Duri Pulo-Kampung Melayu 5,960 Terusan Pasteur-Gedebage 6,917 8,446 Potential project Pekanbaru-Dumai Manado-Bitung 5,612 Kisaran-Bukit Tinggi 5,280 Bukit Tinggi-Padang 10,230 Terbanggi Besar-Pematang Panggang 5,780 Bakauheni-Terbanggi Besar 8,200 Cilegon-Bojonegara 920 Kamal-Batu Ceper 3,590 Gede Bage-Majalaya 900 Semarang-Demak 296 Yogyakarta-Bawen 6,085 Yogyakarta-Solo 2,330 Bandara Juanda-Tj. Perak 5,030 Probolinggo Banyuwangi 8,000 Batu Ampar-Bandara Hang Nadim 2,200 Total 136,773

59 Tender preparation 28 Tender preparation 15 Tender preparation Finalized in 2011 38 Tender preparation Ongoing 10 23 8 Invesment Tender 10 26 11 27 135 46 60 55 100 1,000 16 Tender preparation 32 at feasibility study 13 24 104 40 23 170 25 2,203

PPP project with soft loan from China Fit and proper evaluation; Govt endorsed The project is of high interest from Jakarta municipal Govt. Most likely will create a consortium to handle Rp40tr work with Jaya Real and Jaya Konstruksi (JRPT and JKON) Govt proposal Govt proposal Feasibility study Feasibility study Feasibility study Feasibility study Feasibility study Feasibility study Feasibility study Feasibility study Feasibility study Feasibility study Feasibility study Feasibility study

SOURCES: CIMB, BJPT

1.5 Working up the balance sheet

The company should start to gear up significantly in 2012 for construction working capital. It may need to spend at least Rp4.2tr in 2012 (21% of its assets), assuming construction is divided evenly between 2012 and 2013. With DER of 70% per project, it may have to raise Rp2.7tr annually in 2012/13, bringing its gearing to 1x and 1.3x respectively (9M11: 0.6x).

2. VALUATION AND RECOMMENDATION 2.1 Premiums justified

We are keeping our forecasts for FY11-12 and adjusting for higher debt in 2013. We are keeping our DCF target price as we have started including new toll roads in Bali from 2014 onwards. The project has one of the better IRRs, based on our calculations, due to its higher tariff base. The company is trading at 17x P/E CY12 vs. regional peers 9.8x. We believe the premium is justified by growth prospects. Our current 5-year net-profit CAGR estimate is 24% (FY11-16) vs. 9% for selected regional players. Our target price is derived from DCF valuation after applying a discount of 45% to NPV. We may remove this discount upon the completion and operation of its projects, as risks dwindle.

Jasa Marga

January 5, 2012

Figure 6: Growth to accelerate in 2015/16

25 1.20

20

20.46

1.00

19.58
0.80

15

15.09 11.76
0.60

10

9.79
0.40

0.20

0.75
2011

0.97
2012

0.80
2013 PEG at current price (RHS)

0.58
2014 PER

0.38
2015

0.00

SOURCES: CIMB, COMPANY REPORTS

Figure 7: Sector Comparisons

Company Jasa Marga Bangkok Expressways Average (all) Bloomberg Ticker JSMR IJ BECL TB Recom. Outperform NR Price (local curr) 4,375 18.10 Tgt Px (local curr) 5,500 n.a. Mkt Cap (US$ m) 3,253 443 Core P/E (x) CY2012 19.6 9.8 14.7 CY2013 13.9 8.1 11.0 P/BV (x) CY2012 3.45 0.70 2.1 Div. Yield (%) CY2012 3% 7% 5%

SOURCES: CIMB, BLOOMBERG

Jasa Marga

January 5, 2012

DISCLAIMER
This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. By accepting this report, the recipient hereof represents and warrants that he is entitled to receive such report in accordance with the restrictions set forth below and agrees to be bound by the limitations contained herein (including the Restrictions on Distributions set out below). Any failure to comply with these limitations may constitute a violation of law. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this report may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMB. CIMB, its affiliates and related companies, their directors, associates, connected parties and/or employees may own or have positions in securities of the company(ies) covered in this research report or any securities related thereto and may from time to time add to or dispose of, or may be materially interested in, any such securities. Further, CIMB, its affiliates and its related companies do and seek to do business with the company(ies) covered in this research report and may from time to time act as market maker or have assumed an underwriting commitment in securities of such company(ies), may sell them to or buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory or underwriting services for or relating to such company(ies) as well as solicit such investment, advisory or other services from any entity mentioned in this report. The views expressed in this report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations(s) or view(s) in this report. CIMB prohibits the analyst(s) who prepared this research report from receiving any compensation, incentive or bonus based on specific investment banking transactions or for providing a specific recommendation for, or view of, a particular company. However, the analyst(s) may receive compensation that is based on his/their coverage of company(ies) in the performance of his/their duties or the performance of his/their recommendations and the research personnel involved in the preparation of this report may also participate in the solicitation of the businesses as described above. In reviewing this research report, an investor should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest. Additional information is, subject to the duties of confidentiality, available on request. The term CIMB shall denote where applicable the relevant entity distributing the report in that particular jurisdiction where mentioned specifically below shall be a CIMB Group Sdn Bhds affiliates, subsidiaries and related companies. (i) As of January 4, 2012, CIMB has a proprietary position in the securities (which may include but not limited to shares, warrants, call warrants and/or any other derivatives) in the following company or companies covered or recommended in this report: (a) (ii) As of January 5, 2012, the analyst(s) who prepared this report, has / have an interest in the securities (which may include but not limited to shares, warrants, call warrants and/or any other derivatives) in the following company or companies covered or recommended in this report: (a) The information contained in this research report is prepared from data believed to be correct and reliable at the time of issue of this report. This report does not purport to contain all the information that a prospective investor may require. CIMB or any of its affiliates does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report and accordingly, neither CIMB nor any of its affiliates nor its related persons shall be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof. This report is general in nature and has been prepared for information purposes only. It is intended for circulation amongst CIMB and its affiliates clients generally and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. The information and opinions in this report are not and should not be construed or considered as an offer, recommendation or solicitation to buy or sell the subject securities, related investments or other financial instruments thereof. Investors are advised to make their own independent evaluation of the information contained in this research report, consider their own individual investment objectives, financial situation and particular needs and consult their own professional and financial advisers as to the legal, business, financial, tax and other aspects before participating in any transaction in respect of the securities of company(ies) covered in this research report. The securities of such company(ies) may not be eligible for sale in all jurisdictions or to all categories of investors. Australia: Despite anything in this report to the contrary, this research is provided in Australia by CIMB Research Pte. Ltd. (CIMBR) and CIMBR notifies each recipient and each recipient acknowledges that CIMBR is exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 (Cwlth) in respect of financial services provided to the recipient. CIMBR is regulated by the Monetary Authority of Singapore under the laws of Singapore, which differ from Australian laws. This research is only available in Australia to persons who are wholesale clients (within the meaning of the Corporations Act 2001 (Cwlth)) and is supplied solely for the use of such wholesale clients and shall not be distributed or passed on to any other person. This research has been prepared without taking into account the objectives, financial situation or needs of the individual recipient. France: Only qualified investors within the meaning of French law shall have access to this report. This report shall not be considered as an offer to subscribe to, or used in connection with, any offer for subscription or sale or marketing or direct or indirect distribution of financial instruments and it is not intended as a solicitation for the purchase of any financial instrument. Hong Kong: This report is issued and distributed in Hong Kong by CIMB Securities (HK) Limited (CHK) which is licensed in Hong Kong by the Securities and Futures Commission for Type 1 (dealing in securities), Type 4 (advising on securities) and Type 6 (advising on corporate finance) activities. Any investors wishing to purchase or otherwise deal in the securities covered in this report should contact the Head of Sales at CIMB Securities (HK) Limited. The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CHK has no obligation to update its opinion or the information in this research report. This publication is strictly confidential and is for private circulation only to clients of CHK. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CHK. Unless permitted to do so by the securities laws of Hong Kong, no person may issue or have in its possession for the purposes of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to the securities covered in this report, which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong). Indonesia: This report is issued and distributed by PT CIMB Securities Indonesia (CIMBI). The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBI has no obligation to update its opinion or the information in this research report. This publication is strictly confidential and is for private circulation only to clients of CIMBI. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBI. Neither this report nor any copy hereof may be distributed in Indonesia or to any Indonesian citizens wherever they are domiciled or to Indonesia residents except in compliance with applicable Indonesian capital market laws and regulations. Malaysia: This report is issued and distributed by CIMB Investment Bank Berhad (CIMB). The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMB has no obligation to update its opinion or the information in this research report. This publication is strictly confidential and is for private circulation only to clients of CIMB. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMB. New Zealand: In New Zealand, this report is for distribution only to persons whose principal business is the investment of money or who, in the course of, and for the purposes of their business, habitually invest money pursuant to Section 3(2)(a)(ii) of the Securities Act 1978. Singapore: This report is issued and distributed by CIMB Research Pte Ltd (CIMBR). Recipients of this report are to contact CIMBR in Singapore in respect of any matters arising from, or in connection with, this report. The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBR has no obligation to update

10

Jasa Marga

January 5, 2012

its opinion or the information in this research report. This publication is strictly confidential and is for private circulation only. If the recipient of this research report is not an accredited investor, expert investor or institutional investor, CIMBR accepts legal responsibility for the contents of the report without any disclaimer limiting or otherwise curtailing such legal responsibility. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBR. As of January 4, 2012, CIMB Research Pte Ltd does not have a proprietary position in the recommended securities in this report. Sweden: This report contains only marketing information and has not been approved by the Swedish Financial Supervisory Authority. The distribution of this report is not an offer to sell to any person in Sweden or a solicitation to any person in Sweden to buy any instruments described herein and may not be forwarded to the public in Sweden. Taiwan: This research report is not an offer or marketing of foreign securities in Taiwan. The securities as referred to in this research report have not been and will not be registered with the Financial Supervisory Commission of the Republic of China pursuant to relevant securities laws and regulations and may not be offered or sold within the Republic of China through a public offering or in circumstances which constitutes an offer within the meaning of the Securities and Exchange Law of the Republic of China that requires a registration or approval of the Financial Supervisory Commission of the Republic of China. Thailand: This report is issued and distributed by CIMB Securities (Thailand) Company Limited (CIMBS). The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBS has no obligation to update its opinion or the information in this research report. This publication is strictly confidential and is for private circulation only to clients of CIMBS. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBS. Corporate Governance Report: The disclosure of the survey result of the Thai Institute of Directors Association (IOD) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. CIMBS does not confirm nor certify the accuracy of such survey result. Score Range 90 100 80 89 70 79 Below 70 or No Survey Result Description Excellent Very Good Good N/A United Arab Emirates: The distributor of this report has not been approved or licensed by the UAE Central Bank or any other relevant licensing authorities or governmental agencies in the United Arab Emirates. This report is strictly private and confidential and has not been reviewed by, deposited or registered with UAE Central Bank or any other licensing authority or governmental agencies in the United Arab Emirates. This report is being issued outside the United Arab Emirates to a limited number of institutional investors and must not be provided to any person other than the original recipient and may not be reproduced or used for any other purpose. Further, the information contained in this report is not intended to lead to the sale of investments under any subscription agreement or the conclusion of any other contract of whatsoever nature within the territory of the United Arab Emirates. United Kingdom: This report is being distributed by CIMB Securities (UK) Limited only to, and is directed at selected persons on the basis that those persons are (a) persons falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (the Order) who have professional experience in investments of this type or (b) high net worth entities, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order, (all such persons together being referred to as relevant persons). A high net worth entity includes a body corporate which has (or is a member of a group which has) a called-up share capital or net assets of not less than (a) if it has (or is a subsidiary of an undertaking which has) more than 20 members, 500,000, (b) otherwise, 5 million, the trustee of a high value trust or an unincorporated association or partnership with assets of no less than 5 million. Directors, officers and employees of such entities are also included provided their responsibilities regarding those entities involve engaging in investment activity. Persons who do not have professional experience relating to investments should not rely on this document. United States: This research report is distributed in the United States of America by CIMB Securities (USA) Inc, a U.S.-registered broker-dealer and a related company of CIMB Research Pte Ltd solely to persons who qualify as "Major U.S. Institutional Investors" as defined in Rule 15a-6 under the Securities and Exchange Act of 1934. This communication is only for Institutional Investors and investment professionals whose ordinary business activities involve investing in shares, bonds and associated securities and/or derivative securities and who have professional experience in such investments. Any person who is not an Institutional Investor must not rely on this communication. However, the delivery of this research report to any person in the United States of America shall not be deemed a recommendation to effect any transactions in the securities discussed herein or an endorsement of any opinion expressed herein. For further information or to place an order in any of the above-mentioned securities please contact a registered representative of CIMB Securities (USA) Inc. Other jurisdictions: In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is only for distribtion to professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

Recommendation Framework #1 *

Stock
OUTPERFORM: The stock's total return is expected to exceed a benchmark's total return by 5% or more over the next 12 months. NEUTRAL: The stock's total return is expected to be within +/-5% of a benchmark's total return. UNDERPERFORM: The stock's total return is expected to be below a benchmark's total return by 5% or more over the next 12 months. TRADING BUY: The stock's total return is expected to exceed a benchmark's total return by 5% or more over the next 3 months. TRADING SELL: The stock's total return is expected to be below a benchmark's total return by 5% or more over the next 3 months. relevant relevant relevant relevant relevant

Sector
OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index over the next 12 months. NEUTRAL: The industry, as defined by the analyst's coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months. UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index over the next 12 months. TRADING BUY: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index over the next 3 months. TRADING SELL: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index over the next 3 months.

* This framework only applies to stocks listed on the Singapore Stock Exchange, Bursa Malaysia, Stock Exchange of Thailand and Jakarta Stock Exchange. Occasionally, it is permitted for the total expected returns to be temporarily outside the prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons. CIMB Research Pte Ltd (Co. Reg. No. 198701620M)

11

Jasa Marga

January 5, 2012

Recommendation Framework #2 **

Stock
OUTPERFORM: Expected positive total returns of 15% or more over the next 12 months. NEUTRAL: Expected total returns of between -15% and +15% over the next 12 months. UNDERPERFORM: Expected negative total returns of 15% or more over the next 12 months. TRADING BUY: Expected positive total returns of 15% or more over the next 3 months. TRADING SELL: Expected negative total returns of 15% or more over the next 3 months.

Sector
OVERWEIGHT: The industry, as defined by the analyst's coverage universe, has a high number of stocks that are expected to have total returns of +15% or better over the next 12 months. NEUTRAL: The industry, as defined by the analyst's coverage universe, has either (i) an equal number of stocks that are expected to have total returns of +15% (or better) or -15% (or worse), or (ii) stocks that are predominantly expected to have total returns that will range from +15% to -15%; both over the next 12 months. UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, has a high number of stocks that are expected to have total returns of -15% or worse over the next 12 months. TRADING BUY: The industry, as defined by the analyst's coverage universe, has a high number of stocks that are expected to have total returns of +15% or better over the next 3 months. TRADING SELL: The industry, as defined by the analyst's coverage universe, has a high number of stocks that are expected to have total returns of -15% or worse over the next 3 months.

** This framework only applies to stocks listed on the Hong Kong Stock Exchange and China listings on the Singapore Stock Exchange. Occasionally, it is permitted for the total expected returns to be temporarily outside the prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons.

Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2010.
ADVANC - Excellent, AMATA - Excellent, AOT - Excellent, AP - Very Good, BANPU - Excellent , BAY - Excellent , BBL - Very Good, BCP - Excellent, BEC - Very Good, BECL Excellent, BGH - Very Good, BH - Very Good, BIGC - Very Good, BTS - Good, CCET - Very Good, CK - Very Good, CPALL - Very Good, CPF - Excellent, CPN - Excellent, DELTA Very Good, DTAC - Very Good, GLOBAL - not available, GLOW - Very Good, HANA - Very Good, HEMRAJ - Excellent, HMPRO - Very Good, ITD - Very Good, IVL - not available, KBANK - Excellent, KTB - Excellent, LH - Very Good, LPN - Excellent, MAJOR - Very Good, MCOT - Excellent, MINT - Very Good, PS - Very Good, PSL - Excellent, PTT Excellent, PTTAR - Excellent, PTTCH - Excellent, PTTEP - Excellent, QH - Very Good, RATCH - Excellent, ROBINS - Excellent, ROJNA - Very Good, SAMART - Excellent, SAMTEL - Excellent, SCB - Excellent, SCC - Excellent, SCCC - Very Good, SIRI - Very Good, SPALI - Very Good, STA - Good, STEC - Very Good, TASCO - Very Good, THAI Very Good, TMB - Excellent, TOP - Excellent, TRUE - Very Good, TTA - Excellent, TTW - Very Good, TUF - Very Good.

12