You are on page 1of 33

PT SARATOGA INVESTAMA SEDAYA Tbk.

PT SARATOGA INVESTAMA SEDAYA TBK

Aug 2014
1

Saratoga, Indonesia’s Leading Active Investment Company
Edwin Soeryadjaya

PT Unitras Pertama

29.2%





Sandiaga S. Uno

31.5%

Public

29.2%

10.2%

Leading active investment company in Indonesia with estimated NAV of IDR 21.8tn (USD 1.8bn)
Listed on the IDX in 2013 with current market cap of IDR 13.6tn (USD 1.13bn)
Edwin Soeryadjaya and Sandiaga Uno founded and invested through the Company since 1998
Focus on early-stage, growth-stage, and special situation opportunities
Actively engage and work closely with investee companies’ management teams in unlocking value of investments
Invested across key sectors of the Indonesian economy: Consumer, Infrastructure and Natural Resources

Consumer
Automotive

Data presented are as of 30 June 2014
IDR/USD as of 30 June 2014 = 11,969
Source: Company information

Infrastructure
Property

Power

Roads

Natural Resources
Telecommunications

Agriculture

Oil & Gas

Metals &
Mining

2

Our Investment Strategy
• Leading active investment company in Indonesia

OUR VISION

• Focus on GROWTH, STRENGTH and REPUTATION

• Partner of choice for investors aspiring to participate in Indonesia’s growth

Investment Mandate

Our Value Proposition

 Good proxy to the Indonesian
economy

Acquire platforms in
strategic sectors

 Three key target sectors:

Consumer

Infrastructure

Natural resources and
agriculture

Partnerships
Organic and/or
inorganic growth of
investments

 Blue-chip listed companies
offering potential for strong
growth with mitigation of
portfolio downside risk
 Smaller early-stage investments
with large upside potential

Our Operating Model

Track Record

Monetization of
investments
3

develop company strategy and products and generate strong returns Growth Companies 4 .Diversified Investment Portfolio Diversified exposure to investments at various stages of growth – early-stage investments provide large upside potential and strategic interests in leading blue-chip companies provide income stability Early Stage Companies  Growth companies generate sustainable and healthy cash flows for SIS’ portfolio  Provides great upside potential when growth companies enter into mature phases Listed Blue Chip Companies  Blue-chip Investee Companies are established industry leaders with growth and capital appreciation opportunities  SIS to remain a long-term shareholder in these businesses Consumer Infrastructure Natural Resources  Early-stage companies provide large upside potential  Ability to acquire larger stakes allows SIS to exert significant influence.

3% 7.17 Market Value ITRR:SP SGD0.821 Investments PT Adaro Energy Tbk PT Provident Agro Tbk PT Mitra Pinasthika Mustika Tbk PT Tower Bersama Infrastructure Tbk Seroja Investment Limited PT Nusa Raya Cipta Tbk Sumatra Copper and Gold plc Sihayo Gold Limited Finders Resources Limited Interra Resources Limited PT Etika Karya Usaha PT Tenaga Listrik Gorontalo PT Medco Power Indonesia PT Agro Maju Raya PT Lintas Marga Sedaya PT Sinar Mentari Prima PT Tri Wahana Universal PT Pulau Seroja Jaya Book Value Book Value Book Value Book Value Book Value Book Value Book Value Book Value + Cash Balance as of 30 June 2014 Net Asset Value for SIS as of 30 June 2014 Notes: Market prices are updated as of 30 June 2014.1% 23.0% 9.969 / 1 USD *Mainly consist of investment in MDM (non-trade receivables) and advances for investment Source: Company information 5 . and debt are according to H1 2014 financial numbers which are unaudited IDR/USD as of 30 June 2014= IDR 11.Debt as of 30 June 2014 2.4% 44.7% 47. Book values.347 2.08 Market Value NRCA IDR793 Market Value SUM:AU AUD0. cash.0% 18.9% 6.3% 12.6% Market Value ADRO IDR1199 Market Value PALM IDR490 Market Value MPMX IDR1237 Market Value TBIG IDR7896 Market Value SER:SP SGD0.034 .0% 50.9% 17.3% 25.06 Market Value SIH:AU AUD0.816 235 261 22 21.8% 29.6% 30.0% 18.0% 35.02 Market Value FND:AU AUD0.40 Others* 6285 1541 2629 11393 70 138 49 32 92 295 91 74 257 224 271 85 241 27 554 525 129 220 952 6 12 4 3 8 25 8 6 22 19 23 7 20 2 46 Sum of investee companies 24.4% 46.792 1.Net Asset Value Effective Ownership Valuation Method Ticker 2wks VWAP Market Price Valuation (IDR bn) Valuation (USD m) 16.8% 14.

INVESTMENT HIGHLIGHTS 6 .

serving as Vice President and Director Ernst & Young Indonesia Entrepreneur Of the Year in 2010 Holds or has held positions as an elected member of the Indonesian Economic Committee and vice president of Micro. London and Vietnam Portfolio Executives   Budianto Purwahjo Yuliantina Wangsawiguna   Kumari Ellie Turjandi   Herman Setya Budi Arif Qasimi Al Bone Supported by 52 full-time employees at the parent-level company Our Multiple Sourcing Channels Investee Companies Fund Financial advisors Investee Companies offer us opportunities to partner with them for larger transactions and often refer other opportunities to us The Fund’s global network of limited partners provides an extensive base of referrals We frequently meet with investment banks and other parties that are representing entities seeking a purchaser or strategic investment partner 7 . UNO President Director EDWIN SOERYADJAYA President Commissioner    Joined PT Astra International in 1978 and worked within the family business for over 15 years.Experienced Founders and Management Team • Our founders and management team’s long-standing experience and network of contacts in the Indonesian investment landscape and multiple sourcing channels provide us with business opportunities that are not available to others • Proven track record in adding value to and growing our investee companies through stronger access to potential business partners. Small and Medium Enterprises and Cooperatives of the Indonesian Chamber of Commerce and Industry and Chairman of the Indonesian Young Entrepreneurs Association Our Management Team MICHAEL SOERYADJAYA Business Development Director   JERRY NGO Finance Director Appointed Director in 2013 Commissioner of PT Multi Pinasthika Mustika Rent since 2012 and Director of PT Bareika Capital since 2010   Appointed Independent Director in 2013. CFO since 2012 Previously Executive Director of Institutional Banking at PT ANZ Bank Indonesia and held a number of senior positions at Standard Chartered Bank in Singapore. financing channels and improved corporate governance Our Founders SANDIAGA S.

773 9.568 319 585 2. Bloomberg .764 1. 2011.518 12.283 8. 2010.401 421 842 8. 2012 and 2013 no adjustments have been made for time value or inflation.Robust track record of strong asset value growth SIS’ investment portfolio has grown significantly and steadily since 2008 in terms of book value as well as market value.382 1.913 2013 book value 2013 market value Notes: All financial numbers are based on their nominal values as of 31 December 2008.579 17.245 2010 market value 2.293 2.844 2. with growth coming from an increasing number of investee companies (IDR bn) Other MPM TBIG Adaro 18.293 190 1. 2009.871 8.382 2.239 8.838 4.292 2. Source: Company financials.155 2008 book value 2008 market value 2009 book value 2009 market value 2010 book value 2.452 2011 market value 2012 book value 2012 market value 5.964 1.265 11.248 2011 book value 7.838 4. The book value of our investments includes the carrying value of our investments and advances for investments.037 1. 2011.781 3.470 15.188 2. 8 The book value of our investment in Tower Bersama includes the book value of our investment in PT Saratoga Infrastruktur The market value of our effective shareholding calculated using two week volume weighted average price as of 31 December 2008.002 1.035 8. 2010.458 3. 2009.891 12.494 5.871 7. The book value of our investment in Adaro Energy includes the book value of our investment in PT Adaro Strategic Capital and PT Adaro Strategic Lestari. 2012 and 2013.074 4.002 1.309 90639 510 2.337 790 4.

12x show substantial equity coverage Debt & Gross/Net Asset Values as of 30 June 2014 (in IDRbn) Maturity Profile 24. 7% unlisted 2.Principal 23 22 2014 2015 0 2016 Note: Please refer to page 5 for asset value breakdown Please refer to page 16 for debt breakdown Gross asset value = NAV + cash The Company calculates the net asset valuation of its investments on the basis of: • For listed companies: the market value of the proportionate shares that are held by SIS • For unlisted companies: the book value of SIS’ shareholding in the company Where: • Market value is derived from the 2 week volume weighted average share price.791 200 150 50 Net Asset Gross Asset Value Value .347 250 207 93% listed. • Book value is derived from investment at cost adjusted by accumulated profit or loss to arrive at the ending balance 9 Note: Financial numbers for the quarter ended 30 June 2014 are unaudited Source: Company financials .13x and 0.Conservative Leverage Strong Debt to Net Asset Value and Total Asset of 0.Interest 100 .817 Debt USD Millions 21.

Sumatra Copper and Gold plc.969 / 1 USD * Source: Company financials as of 31 December 2013 ** Consist of PT Adaro Energy Tbk and PT Tower Bersama Infrastructure Tbk *** Source: Company financials as of 30 June 2014 **** Consist of PT Provident Agro Tbk. Sihayo Gold Limited.Diversified Sources of Cash SIS has multiple internal sources of cash and liquidity Adaro Energy IDR 145 bio* (US$ 12. PT Tri Wahana Universal and PT Pulau Seroja Jaya . PT Agro Maju Raya. Finders Resources Limited and Interra Resources Limited 10 ***** Consist of PT Etika Karya Usaha. PT Lintas Marga Sedaya.477m) Sale of Shares of other Listed Investee Companies**** IDR 4. PT Tenaga Listrik Gorontalo. Seroja Investment Limited. PT Mitra Pinasthika Mustika Tbk.823bio*** (US$ 152m) Notes: Financial numbers for the quarter ended 30 June 2014 are unaudited Values for listed and unlisted companies are based on market cap and book value respectively IDR/USD as of 30 June 2014= IDR 11. PT Sinar Mentari Prima. PT Nusa Raya Cipta Tbk.677 bio*** (US$ 1.3m) Fixed Income Sources of Cash Operating Income Sale of Shares on Investee Companies in Monetization phase** IDR 17.7m) Dividend Income Tower Bersama Investment Income IDR 72 bio* (US$ 6. PT Medco Power Indonesia.846 bio*** (US$ 405m) Monetize Unlisted Investee Companies***** IDR 1.

implementation of risk management and compliance with prevailing laws and regulations 11 .Sound investment strategy and corporate governance framework SIS is highly committed to ensuring that its investments satisfy its strict corporate governance framework and also cooperates with the International Finance Corporation to develop similar practices in investee companies INVESTMENT COMMITTEE  Provide independent recommendations on systems. effectiveness of internal control systems. monitoring of investment performance and active monitoring of investment risk profile ENVIRONMENTAL − − − − Energy and water use Land clearance practices Emissions Levels of natural resources utilization − Air and water pollution − Waste management − Activities in sensitive habitats NOMINATION AND REMUNERATION COMMITTEE INVESTMENT CONSIDERATIONS SOCIAL GOVERNANCE − Anti-corruption policies − Accounting and legal compliance − Related party transactions − Criminal conduct − Pending or threatened litigation − Historical transparency − Local community relationships − Minimum working age − Minimum wage levels − Health and safety record and procedures − Union representation − Security force usage − Historical discrimination − Relationships with NGOs  Provide independent recommendations on the systems and procedures related to succession programs and identification of candidates for the Board of Commissioners and Board of Directors  Provide independent recommendations on the determination of remuneration of members of the Board of Commissioners and Board of Directors AUDIT COMMITTEE  Assist in implementing supervisory function. procedures and implementation thereof in areas related to investment. capitalization of investment and divestments activities. effectiveness of internal and independent audit. especially in financial information management.

FINANCIAL OVERVIEW 12 .

There is no one – off item in 1H 2014. an oil refinery company.500 1.000 569 1. and PT Sinar Mentari Prima (SMP). our revenue is mainly derived from the two consolidated entities of PT Tri Wahana Universal (TWU). 13 Note: Financial numbers for the quarter ended 30 June 2014 are unaudited Source: Company financials .953bn in 2012 as presented in the consolidated financial statements include one-off items due to the change in accounting methods. a floating storage and offloading vessel company.Results of Operations Revenue .500 3.000 IDR Billion 855 Infrastructure 373 2.000 3.net Underlying Profit Contribution from Investee Companies (IDR billion) 4.000 • Natural Resources 2012 2013 1H 2013 1H 2014 2011 637 50 322 210 265 2012 2013 501 293 79 67 147 Consumer 180 171 150 1H 20131H 2014 Given associate nature of most investments.500 314 168 500 118 0 2011 • 897 2. The above profit contribution from investee companies shows the underlying profit contribution from investee companies if these one-off items are excluded. Net share profit from associates amounting to IDR 933bn in 2013 and IDR 1.

000 18.769 Debt / Equity = 0.000 12.Financial Positions Consolidated Total Assets Consolidated Total Liability Consolidated Total Equity 18.000 2.000 14.000 10.000 12.000 6.000 2.000 IDR billion 16.000 16. assets and liability were overstated and normalized back in 2014 Financial numbers for the quarter ended 30 June 2014 are unaudited Source: Company financials Debt Asset 14 .000 8.000 4.000 12.000 18.000 6.000 8.000 4.000 10.943 Debt 2011 2012 2013 1H 2014 Asset *Parent-only include SIS and intermediate holding companies Notes: Due to reclassification of investment at end 2013.000 10.000 IDR billion IDR billion 16.25x 15.816 3.000 8.000 6.000 14.24x 11.000 2.000 14.742 2.000 - - 2011 2012 2013 2011 2012 2013 1H 2014 1H 2014 Parent-Only Debt & Asset as of 30 June 2014 Consolidated Debt & Asset as of 30 June 2014 Debt / Equity = 0.000 4.

54 Interest Expense 500 200 • Interest Service Coverage (x) 2012 2013 1H 2014 2.90 1.Dividend Income & Interest Expense 800 Dividend Income (ADRO) 700 Dividend Income (TBIG) Dividend (NRCA) IDR billion 600 400 358 358 300 222 29 193 217 72 159 100 145 163 2011 153 4 85 63 26 0 • • 8. Nusa Raya Cipta Diversification of sources with additional Dividend Income from NRCA Dividend Income safely covers current interest expense 15 Note: Financial numbers for the quarter ended 30 June 2014 are unaudited Source: Company financials .33 81 2011 2012 2013 1H 2014 Sources of Dividend Income are from Saratoga’s ownership in Adaro Energy. Tower Bersama.25 1.

1% Unamortized transaction cost (IDR 39) TOTAL (SIS + Intermediate Holding Companies + Other Consolidated Operating Companies) IDR 3.2% .Onshore: LIBOR + 4. Bank Central Asia. UOB.5% JIBOR + 12.7% IDR 479 May 2013 DBS USD80m bank loan 5 years LIBOR + 4.5% IDR 50 Unamortized transaction cost (IDR 37) SUB-TOTAL (SIS) PT Wahana Anugerah Sejahtera IDR 2.943 Notes: Data presented are as of 30 June 2014 Financial numbers ended 30 June 2014 are unaudited Source: Company information 16 .Offshore bank: LIBOR + 4.032 Facility B: .Onshore: LIBOR + 3.Offshore: LIBOR + 3.Onshore bank: LIBOR + 5. repaid in 58 monthly instalments Facility C – 5 years Facility A: .223 December 2012 ING USD50m bank loan Earlier of 60 months or 8 November 2016 LIBOR + 5% IDR 598 Unamortized transaction cost (IDR 5) SUB-TOTAL (SIS + Intermediate Holding Companies) IDR 2.Facility C: SBLC Facility A – 5 years Facility B – 5 years.817 PT Sinar Mentari Prima March 2011 Bank UOB Indonesia USD24m bank loan Earlier of 5.25 years or 30 April 2016 LIBOR + 2.Offshore: LIBOR + 3.25% .Facility A: Working capital . Bank UOB Indonesia USD300m syndicated loan 5 years USD: .7% Outstanding (in IDRbn) IDR 1.Facility B: Loan .5% . Bank Ekonomi Rahardja.1% IDR 1. Bank Permata.Borrowings Entity Date Lender(s) Facility Maturity Interest Rate PT Saratoga Investama Sedaya Tbk October 2011 HSBC.75% IDR 134 PT Tri Wahana Universal June 2013 HSBC.043 Rupiah: JIBOR + 4% May 2013 ING USD80m bank loan 60 months LIBOR + 4.7% IDR 688 May 2013 Permata USD10m bank loan 12 months LIBOR + 5. SCB USD150m syndicated loan .

INVESTEE COMPANIES ADARO ENERGY 17 .

9bn tonnes and 1.000 contract 2011 Acquired a further 1% of Adaro Energy at IDR 1. Adaro Energy’s coal is trademarked and marketed as “Envirocoal” and has a high demand in the global export market  Production volume has increased significantly from 36.417 2002 Outlook 2005 Acquired a further 11% of PT Adaro Indonesia for USD10.  Currently constructing what will become the largest coal-fired power plant in Southeast Asia.4%  Key historical financials (IDRbn) Sales Gross profit Net income 2013 34.Overview of PT Adaro Energy Tbk Company overview Second largest thermal coal producer in Indonesia and operates the largest single coal mine in Indonesia First vertically integrated coal producer in Indonesia. trading.1m tonnes in 2007 to 52.343 10.906 1. with mines in Tutupan.2m 2003 Indonesia’s extensive coal resources Diversified operations Key 1Q 2014 operating data 1Q 2014 2. a 2 x 1.944 37.1bn tonnes respectively    As at 31 Mar 2014: Invested: IDR 978bn Value of stake: IDR 5. Uno is Director.346 Production volume (m tonnes) Sales volume (m tonnes) Overburden removal (m bank cubic meters) 2004 Ideally placed to capitalize on Indonesia’s abundant supply of thermal coal and meet the increasing demand for coal.865 31.007 7. transportation.3 m tonnes in 2013.3m and 10% of PT Indonesia Bulk Terminal for USD 0.9  Experienced management team 68.000 MW plant in Central Java  Also investing in independent power producers in Kalimantan and Java in conjunction with reputable global investors in the energy sector  Expansion into power will provide Adaro Energy with the opportunity to take advantage of possible supply synergies and pricing stability  Diversified sources of coal with multiple mines in Indonesia in both Kalimantan and Sumatra  Source diversity complemented by product diversity provided by Adaro Energy’s investments in both thermal and coking coal mines Strong demand Expansion of power operations 14 13.573 per share 2012 Acquired a further 0.078 78. storage. particularly in Asia  Because of its low ash.1tn Effective interest: 16. Significant supplier to the global seaborne thermal coal market and Indonesia’s largest coal producer. sulfur and nitrogen content.8% of Adaro Energy for IDR 203bn Awarded Central Java 2x1.556 Equity 38. spanning coal mining.9% of Adaro Energy at IDR 1. Production guidance for 2014 is 54-56 m tonnes. processing.628 Market capitalization 34. General Affairs Other drivers for growth include: – Significant cost savings achieved by vertical integration of transportation systems and infrastructure – Reduction of operational cost and elimination of third party margins by assigning 50% of Adaro Energy’s production to subsidiaries within the supply chain Partnership with BHP Billiton for Maruwai coal mine 2009 2010 Sold 0. Wara and Paringin Coal resources and reserves calculated in compliance with Australasian JORC Code are estimated to be 4.25m SIS’ first investment of 23.370 per share 2013 18 . and power.2   Other drivers Held interest in entity which acquired 40% of both PT Adaro Indonesia and PT Indonesia Bulk Terminal for USD 45.941 Assets 82.2% of Adaro Energy for IDR 478bn 2006 LBO conducted 2007 Listing of Adaro Energy on IDX 2008 Managed by five well-respected Indonesian families – Edwin Soeryadjaya is the President Commissioner – Sandiaga S.727 2.

0% 2.0% 3.0% 7.0 30.0 23.3 50.0% 2.0 47.3 54 52.0% 7.0% 7.0% Others Source: PT Adaro Energy Tbk Institutional Investor Day 2014 presentation Indonesia Hong Kong Japan Philippines India America Malaysia South Korea China 19 .7 28.Largest Coal Producer in the Southern Hemisphere Strong production capabilities 2013 largest producing concession in Southern Hemisphere Mt Mt 52.0% 10.0% Power Cement 17.0 52 37.0% 87.1 46 44 2011 2012 2013 Adaro Indonesia A B C D E F Diversified customer base with long-term contracts Customer type by % volume (FY2013) Geographical breakdown of customers by revenue (FY2013) 8.0% 21.2 15.0 50 48 47.0% 4.0% 14.0% 11.

1m) 700 IDR Billion 2000 1500 1000 600 500 400 300 200 500 100 • • • • 0 May-14 Jan-14 Sep-13 May-13 Jan-13 Sep-12 May-12 Jan-12 Sep-11 May-11 0 Jan-11 May-14 Jan-14 Sep-13 May-13 Jan-13 Sep-12 May-12 Jan-12 Sep-11 May-11 Jan-11 0 Buy Hold Sell ADRO is included in LQ45 index Saratoga’s share ownership in Adaro Energy as of 30 June 2014 = 5.3tn 20 Source: Bloomberg.199 Market value of Saratoga’s ADRO shares as of 30 June 2014 = IDR 6.Shares of PT Adaro Energy Tbk ADRO Share Price (IDR) .240m shares 2 weeks VWAP Price of ADRO shares of 30 June 2014 = IDR 1. Reuters as at 30 June 2014 .2 weeks VWAP ADRO Share Daily Traded Value Analyst Recommendations 9 900 3000 8 800 2500 Average daily traded volume (100d) = IDR 71bn (USD 6.

INVESTEE COMPANIES TOWER BERSAMA 21 .

392 Market capitalization 27. with majority located in high population density areas such as Java. Telkomsel.572 telecommunication sites serving over 17. Indosat and XL Revenues are derived from long-term lease agreements with tenants Length of tower site lease agreements of generally ten years and length of Distributed Antenna Systems network license agreements of generally five to eight years to provide stable cash flows   Indonesian regulations allow foreign investment only in listed companies in this sector Limited capital available to private companies allows SIS to source attractive entry valuations for add-on acquisitions Limited opportunities for foreign capital to invest in listed companies results in attractive exit opportunities     Management team has a successful track record of growing the company both organically and inorganically and to efficiently integrate acquired towers in the company’s tower portfolio – Edwin Soeryadjaya has been President Commissioner since March 2010 – Herman Setya Budi (President Director) – Budianto Purwahjo (Director)  Continued demand for additional towers in Indonesia supported by rising cellular penetration and 3G/4G upgrades Opportunity to continue stable organic growth.779 Telecommunication sites 10. with over 10.3% One of two leading independent tower businesses in Indonesia.222 tenants in Indonesia as of 31 March 2014 Principal business is leasing space for antennas and other equipment for wireless signal transmission at tower sites and shelter-only sites under long-term lease agreements 2013 1Q 2014 Sales 2. including the four largest in terms of revenues – Telkom.719 19.3tn Value of stake: IDR 8.205 641 Net income 1.6% of Tower Bersama as part of IPO 2010 Sold stake in Tower Bersama for IDR 496bn 2011 Acquired 5.295 661 EBITDA 2.500 towers from Indosat 22 . complemented by opportunistic inorganic growth Attractive towers portfolio mainly consists of high-rise towers which support rising colocation Strong management team Favourable growth prospects Founders acquired Telenet Internusa with Provident Capital 2005 Stable cash flows Attractive regulatory dynamics Tenancy ratio   Key Q1 2014 operating data Key historical financials (IDRbn) 2004 Geographic reach   Listing of Tower Bersama 2009 Sold 4.820 28. Sumatra and Bali Existing footprint coupled with strong relationships with large Indonesian telecom operators allows Tower Bersama to adapt quickly for growth in high-demand locations    As at 31 Mar 2014: Invested: IDR 2.572 Tenants 17.Overview of PT Tower Bersama Infrastructure Tbk Company overview Outlook Has sites across most provinces in Indonesia.71x First invested in Tower Bersama with IDR 27bn 2006 Provided additional financing by acquiring PT Mobile-8 Telecom Tbk’s tower assets with founders 2007 2008 Long-term contracts with ten of the leading telecommunications operators in Indonesia.117 Assets 18.691 781 Gross profit 2.222 1.114 4.352 640 Equity 4.8tn Effective interest: 30.6% of Tower Bersama for IDR 825bn Sold stake in Tower Bersama for IDR 926bn 2012 2013 Tower Bersama acquired 2.

5 1. Telkomsel.5 0.1% Telkomsel XL Axiata Bakrie Tel 1.7% 2.0 1.7 1. XL and Indosat Sources: PT Tower Bersama Infrastructure Tbk IDX Investor Summit presentation.5 1.0 2.0 0.0% Tower portfolio mix (30 Jun 2013) Tower tenancies Thousands 0% 6% 2% 27.9% of revenue from top 4 Indonesian telcos Strong EBITDA growth IDRtn IDRtn 3.0 0.63 20 10 11.5 2.8 1.73 1.7 15 7.2% 6.1 1 2013 Tenancy ratio (RHS) 74. Annual report 2013 .8% 1.0 Thousands Thousands Robust revenue growth 2.0 1.4 1.8% 4.6 13.0 23 Note: Top 4 Indonesian telecommunications companies are Telkom Indo.5 1.A Leading Telecommunication Infrastructure Solution and Services Firm Diversified revenue sources (FY2013) 1.5% 45% ‘000 25 16.0 5 23.5% 12.75 0 28% 2011 Indosat Hutchison Smartfren Telkom Indo Axis Others Ground based (>65m) Ground based (32-50m) Rooftop based (32-50m) Ground based (51-65m) Ground based (<32m) Rooftop based (<32m) 2012 Total tenancies (LHS) (x) 1.3 1.5% 19% 10.5 2.5 0.6 1.2 1.

443m shares 2 week VWAP Price of TBIG shares as of 30 June 2014 = IDR 7.000 7.9bn (USD 1.896 Market value of Saratoga’s TBIG shares as of 30 June 2014 = IDR 11.000 1000 6.000 4.000 200 0 • • • • 0 1. Reuters as at 30 June 2014 24 .000 Buy Hold Sell 0 TBIG is included in LQ45* since January 2014 Saratoga’s share ownership in Tower Bersama as of 30 June 2014 = 1. Source: Bloomberg.Shares of PT Tower Bersama Infrastructure Tbk TBIG Share Price (IDR) .000 2.000 600 400 IDR Billion 800 Average daily traded volume (100d) = IDR 14.2 weeks VWAP TBIG Share Daily Traded Value 1200 8.3m) Analyst Recommendations 8 6 5.000 3.4tn * Capitalization-weighted index of the 45 most heavily traded stocks on the Indonesia Stock Exchange.

INVESTEE COMPANIES MITRA PINASTHIKA MUSTIKA 25 .

564 Assets 11.212 Acquired 50% of MPM for IDR 260bn 2010 Motorcycle sales (unit) Oil Sales Volume (‘000 liter) Rental fleet size (unit) Capital call of IDR 150bn 2011 216.113 16.642 Gross profit 2. and away from agency businesses. 26 . and subscribed to additional shares for IDR 318. supporting cross-selling of products and services  Senior management has extensive operational know-how and long-standing relationships in the Indonesian automotive industry  2013 288 retail distributorships under subsidiary PT Mitra Pinasthika Mulia in East Java and East Nusa Tenggara – Edwin Soeryadjaya is currently President Commissioner of MPM – Michael W. Uno is Member of Nomination & Remuneration Committee 14.220 12. P. consumer parts.024 551 Net income 564 157 Equity 4. consumer parts business. retail.395 4.573 MPM listed on IDX 2012 Extensive network of customer access points with: –    Evolving principal business New sales of two-wheel vehicles enjoyed strong growth of 23% to reach 905. auto-services business and the financial services business respectively   Key historical financials (IDRbn) Key 1Q 2014 operating data 2013 1Q 2014 13. Expanded number of its retail outlets from 38 to 40 Increased sales volume of lubricant products from 45. This represents a two-fold growth compared to 10% growth in entire motorcycle industry new sales. with leading positions in terms of market share in five segments of the Indonesian automotive industry − Motorcycle retail business is conducted under retail outlets branded as “MPMMotor” − Total of eleven subsidiaries that are involved in the motorcycle distribution business.5bn Meaningful organic growth of its existing businesses Added car rental services to MPM via acquisition and rebranding of ANJ Rent – 38 Honda motorcycle MPMMotor retail outlets – 28 master distributors with arrangements with PT Federal Karyatama – 22 MPMRent branches and service points – 47 PT Mitra Pinasthika Mustika Finance branches – 31 PT Sasana Artha Finance branches  Nationwide presence provides platform to reach out to and service existing and potential customers.678 Extensive nationwide network of customer access points Experienced and well-connected management team and shareholders Facilitated a IDR 910bn investment in MPM in the form of convertible bonds.6m liters in 2013 Shifted the mix of its business towards principal-based businesses such as motorcycle retail sales and consumer parts. majority of which had been contributed from sales in East Java and East Nusa Tenggara with a market share of 67%. Soeryadjaya is Commissioner at MPMRent – Sandiaga S.Overview of PT Mitra Pinasthika Mustika Tbk Company overview Outlook Market leading positions  Operates businesses in the distribution.3m liters in 2010 to 60.879 Sales 3. allowing more control over the growth and expansion of its business and providing access to potentially higher margins. auto services and financial services segments of the automotive industry  Achieved market leading positions in its operating geographies  Founded in 1988 as a master distributor for Honda motorcycles in East Java and East Nusa Tenggara Now a diversified automotive company.175 units in 2013.

125m shares 2 weeks VWAP Price of MPM shares as of 30 June 2014 = IDR 1.200 IDR billion 800 600 3 Average daily traded volume (100d) = IDR 1.000 20 15 May-14 Apr-14 Mar-14 Feb-14 Jan-14 Dec-13 Nov-13 Oct-13 Sep-13 Aug-13 Jul-13 May-14 Apr-14 Mar-14 Feb-14 Jan-14 Dec-13 Nov-13 Oct-13 Sep-13 0 Aug-13 Jul-13 5 Jun-13 200 Jun-13 10 400 • • • • Analyst Recommendations MPMX Share Traded Value Buy Hold Sell MPMX was added into the MSCI Small Cap Indices since November 2013 Saratoga’s share ownership in Mitra Pinasthika Mustika as of 30 June 2014 = 2.Shares of PT Mitra Pinasthika Mustika Tbk MPMX Share Price (IDR) .9bn (USD 0.237 Market value of Saratoga’s MPM shares as of 30 June 2014 = IDR 2.6tn 27 Source: Bloomberg as at 30 June 2014 .600 35 1.2 weeks VWAP 1.2m) 25 1.400 30 1.

APPENDIX – SIS 28 .

Finders Resources Ltd. 7.1% 0.0% 47.0% Prima PT Pelayaran Antarbuwana Pertala 30. 25.9% 32.8% 13.9% PT Mutiara Agam 46.9% 60.0% 50.6% Sejahtera Companies consolidated into SIS 100. Ltd. 0.0% PT Nugraha Eka Kencana 7.6% 14.5% PT Telenet Internusa 29 . Sihayo Gold Plc.0% PT Saratoga Infrastruktur PT Tower Bersama Infrastructure Tbk.9% 29.9% 40.Current Shareholding Structure PT Saratoga Investama Sedaya Tbk 25. 23.0% PT Anugerah Bumi Nusantara Abadi PT Provident Agro Tbk.5% PT Sarana Asri PT Tri Wahana Universal 49.9% Companies not consolidated into SIS Operating companies Companies directly held by SIS Data is as of 30 May 2014 Source: Company information 100.1% 30.01% Companies indirectly held by SIS Companies directly held by SSB Seroja Shipping Services Pte.7% PT Satria Sukses Makmur Companies contributing 70-80% of SIS’ net profit PT Kalimantan Mentari Khatulistiwa 25.7% PT Lintas Marga Sedaya 50.0% Trans LK Marine Singapore PT Agro Maju Raya PT Saratoga Power 48.0% 99.0% PT Bangun Daya 92.0% PT Etika Karya Usaha 99.0% PT Mitra Pinasthika Mustika Tbk.9% 73..0% PT DBS Vickers Securities Indonesia PT Baskhara Utama Sedaya 99.8% Interra Resources Ltd.8% PT Tenaga Listrik Gorontalo 51.9% 18.7% PT Sukses Indonesia PT Adaro Energy Tbk 40. 99.0% 44.0% 99.0% PT Medco Power Indonesia PT Wahana Anugerah Sejahtera 50.9% 99.5% Perkasa 24.7% 50.8% PT Adaro Strategic Lestari 99. 48.5% 17.0% PT Adaro Strategic Capital 74.3% Seroja Investment Ltd.0% PT Saratoga Sentra Business (SSB) Sumatra Copper and Gold Plc.0% PT Karunia Barito 33. 99.3% PT Nusa Raya Cipta Tbk.1% 99. PT Laju Kencana Murni PT Interra Indo Resources 1.7% PT Bumi Hijau Asri PT Wana Bhakti Sukses Mineral 60.5% 0.7% PT Adaro Strategic Investments 43.0% PT Pulau Seroja Jaya 99.0% PT Sinar Mentari 30.4% 19.9% 4.

Uno  Director: Michael W. Soeryadjaya  Non-Affiliated Director: Jerry Go Ngo 30 . Soeryadjaya  Member: Jerry Go Ngo  Chairman: Anangga W. BOARD OF COMMISSIONERS      President Commissioner: Edwin Soeryadjaya Commissioner: Joyce Soeryadjaya Kerr Commissioner: Indra Cahya Uno Independent Commissioner: Sidharta Utama Independent Commissioner: Anangga W. P. Roosdiono  Member: Edwin Soeryadjaya  Member: Handianto Ganis AUDIT COMMITTEE  Chairman: Sidharta Utama  Member: Mustofa  Member: Ludovicus Sensi W. Uno  Member: Michael W. Roosdiono S.P. BOARD OF DIRECTORS  President Director: Sandiaga S.H.Management Structure NOMINATION AND REMUNERATION COMMITTEE INVESTMENT COMMITTEE  Chairman: Edwin Soeryadjaya (nonvoting)  Member: Sandiaga S.

APPENDIX – INDONESIA OVERVIEW 31 .

0 6.5% 5 5 7 8 9 10 11 13 15 17 21 24 27 30 33 37 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 3 1999 3 1998 2 1997 5 1996 10 1995 50 and above - Source: Business Monitor International Source: Business Monitor International A growing consuming class… 265 145 180 195 135 170 9.7 0.0 1.0 Indonesians (m) 1996 Consuming class …with further growth expected with growing FDI USDbn IDRm % change yoy 50% 30 25 Indonesian demographic profile (2011) GDP Per Capita 35 32 .8 1999 45 10.0 11.0 Source: Business Monitor International 2011 2010 2009 2008 2007 2006 2005 2004 2003 2030 with 7% GDP growth 2002 2030 with 5-6% GDP growth 2001 -10.6 11.7 13.6 -1.0 2000 2010 5.1 100 0 110 21.9 -4.1 -5.9 0.0 200 150 280 240 1997 250 Below consuming class Net FDI inflows 1995 300 25.6 -3.3% 29.0 1998 50 15.2% 16% 7% 16% 15 17% 19% 15% 20% 16% 11% 14% 0-29 30-49 10% 11% 53.3 5.8 20.2 5.600 at 2005 purchasing power parity Source: Mckinsey 8.0 280 15.0 85 -0.0 2020 Note: Consuming class defined as individuals with annual net income of above $3.Key investment sectors underpin compelling economic growth in Indonesia Indonesia’s resilient and long-term economic growth is driven by strong fundamentals and demographics Healthy GDP per capita growth …supported by a predominantly young population 40 25% 17% 15% 20 13% 18% 11% 17.0 -0.

R.ngo@saratoga. 1-2 Jakarta 12950 For further information.karnali@saratoga-investama.co. H.com 33 .PT Saratoga Investama Sedaya Tbk.com Leona Karnali: leona.id Carlson Lau: carlson. Rasuna Said Kav.lau@saratoga-investama. Correspondence Address: Menara Karya 15th Floor Jl. please contact the following individuals below: Jerry Ngo: jerry.