PT Mitra Pinasthika Mustika Tbk

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1 PT Mitra Pinasthika Mustika Tbk Analyst Gathering 26 July

2 Agenda I. Company Overview II. Results & FY13 Outlook 1

3 I. COMPANY OVERVIEW

A leading automotive company in Indonesia Shareholding and Organization Structure (as of 30 June 2013) PT.

Car financing company Honda motorcycle master distributor in East Java & East Nusa Tenggara (c) Honda

B2B vehicle rental operator Motorcycle financing company Auto and cargo insurance company (a) Includes 14.

4 A leading automotive company in Indonesia Shareholding and Organization Structure (as of 30 June 2013) PT. Saratoga Investama Sedaya Tbk Morninglight Investments S.a.r.l Public and Individual Shareholders (a) 44.9% 15.3% 39.8% 100% 100% 100% % (b) Distribution & Retail Auto Consumer Parts Auto Services Financial Services (c) Car financing company Honda motorcycle master distributor in East Java & East Nusa Tenggara (c) Honda motorcycle retail dealer in 11 provinces Motorcycle lubricant oil manufacturer and distributor nationwide B2B vehicle rental operator Motorcycle financing company Auto and cargo insurance company (a) Includes 14.3% of Individual shareholders in PT Rasi Unggul Bestari (b) 100% for MPMFinance; 60% for SAF; 55% for MPMInsurance (c) Motor Distributor is under our 100% subsidiary, Mulia; Motor Sales is an operating division within MPM 3

5 MPM has the best-in-class management team Board of Commissioners Board of Directors Edwin Soeryadjaya Chairman Tossin Himawan President Director Inghie Kwik Vice Chairman Koji Shima Vice President Director Danny Walla Commissioner Istama Tatang Siddharta Independent Commissioner Simon Halim Independent Commissioner BoC brings strong mix of operational, strategy, M&A and governance expertise Johanes Hermawan Operations Director Troy Parwata Finance Director Titien Supeno HR Director BoD members bring over 140 years of combined experience in the automotive industry 4

Mulia and MSO are among the best distribution and retail franchises for Honda motorcycles in Indonesia Mitra Pinasthika Mulia ( Mulia ) Distributor of Honda motorcycles in East Java and East Nusa

volume growth, driven by aggressive expansion Motorcycle sales 000 units 99 415 (a) 75 86 (a) 54 62 (a) 448 +21% 114 (a) 62 (a) 52 (b) (b) Honda M/S in East Java (%) 2009 2010 2011 2012 2013 Number

6 Mulia and MSO are among the best distribution and retail franchises for Honda motorcycles in Indonesia Mitra Pinasthika Mulia ( Mulia ) Distributor of Honda motorcycles in East Java and East Nusa Tenggara Consistent market share capture, supported by Motorcycle sales 000 units % (a) Mustika Sales Operations ( MSO ) Retail sales and services of motorcycles Rapid sales volume growth, driven by aggressive expansion Motorcycle sales 000 units (a) (a) (a) % 114 (a) 62 (a) 52 (b) (b) Honda M/S in East Java (%) Number of (a) retail outlets 41 (a) best-in-class warehousing and supply chain operations and well-managed retail dealership network (a) 2H13 Outlook (b) As of MSO has 40 retail outlets 5

for Honda motorcycles 1 Matic Products Non-matic Products Strong Product

7 Federal Oil is a leading brand in motorcycle lubricants nationally Federal Karyatama ( FKT ) Producer and manufacturer of Federal Oil motorcycle lubricant oil. Also does blending and packaging for AHM Oil, the OEM motorcycle oil brand for Honda motorcycles 1 Matic Products Non-matic Products Strong Product Portfolio Federal Matic 30 Federal Matic 40 Gear Oil Matic Supreme Ultratec Supreme XX Evotec 30 Evotec 40 2 Attractive Growth Profile Sales Volume KL 43,370 45, % 52,713 56,393 64,874 (a) 32, (a) 32, Best in Class Production Facility (a) 2H13 Outlook 6

MPMR is the 2 nd largest vehicle rental company nationally Mitra Pinasthika Mustika Rent ( MPMR ) Provider of full suite of transportation solutions such as vehicle rental, driver service, fleet

8 MPMR is the 2 nd largest vehicle rental company nationally Mitra Pinasthika Mustika Rent ( MPMR ) Provider of full suite of transportation solutions such as vehicle rental, driver service, fleet management, car pooling, and auto body repair Exceptional Growth in Fleet Size Wide Geographic Presence Fleet size Number of cars 3, , % 6, ,066 (a) 1,896 (a) 7,991 12,104 12, Medan Nunukan Aceh Batam Pontiaak Kutai Barat Sulawesi Utara Jambi Samarinda Padang Palembang** Banjarmasin** Pekanbaru Jakarta Balikpapan Semarang Surabaya Sulawesi Selatan Lampung Cilegon Cirebon Solo Bali Bandung Malang Reputable Corporate Clients (b) Loyal Customer Profile (c) 12,104 18% 30% 2% 50% <= 1 year > 1-5 years > 5-10 years > 10 years (a) 2H13 Outlook (b) Sample customers. MPMR has over 950 customers as of June 2013 (c) Source : MPMRent Data as of June

MPM has three financial services subsidiaries to complement its operations Loan portfolio, Loan portfolio, Gross Premium, 2,242 +22% 2,864 3,353 (a)

5% +1,380% 74 (a) 40 (a) 5 34 FY11 FY13 FY11 FY13 FY13 Focus on new and used car purchases as well as used car and motorcycle refinancing Strong

Outlook Focus on new Honda motorcycle, used motorcycle financing and electronic goods financing Partnership with JACCS, a leading Japanese consumer

9 MPM has three financial services subsidiaries to complement its operations Loan portfolio, Loan portfolio, Gross Premium, 2, % 2,864 3,353 (a) 2, (a) 1, % +11% % 87.0% 1,298 (a) 1, (a) 88.5% +1,380% 74 (a) 40 (a) 5 34 FY11 FY13 FY11 FY13 FY13 Focus on new and used car purchases as well as used car and motorcycle refinancing Strong relationship with funding providers as well as numerous retail car dealers and showrooms 47 branches, 88 outlets and 10 marketing offices (a) 2H13 Outlook Focus on new Honda motorcycle, used motorcycle financing and electronic goods financing Partnership with JACCS, a leading Japanese consumer finance company, to lower overall funding cost 32 branches in 6 provinces Offers vehicle, cargo and property insurance Established to leverage on broader insurance opportunities within MPM Reinsurance treaty with Swiss Reinsurance 6 representative offices 8

10 MPM has clear strategy to grow its businesses and to further capture new opportunities within automotive industry Indonesia s automotive industry is attractive and generated over $59 bn of sales in 2011 New Car Sale New 2W Sale Auto Consumer Parts Auto Services Auto Financial Services Other Car manufacturing ($12.7 bn) Car distribution ($13.1 bn) Car retail ($14.8 bn) 2W manufacturing ($11.2 bn) 2W distribution ($11.9 bn) 2W retail ($13.5 bn) Spare parts ($1.1 bn) Lubricant oil ($1.7 bn) Batteries ($1.1 bn) Tires ($2.1 bn) Car rental ($2.4 bn) Taxi ($0.5 bn) Motorcycle financing ($2.0 bn) Car financing ($1.5 bn) Vehicle insurance ($1.2 bn) Used motorcycle resale ($7.5 bn) Used car resale ($9.7 bn) MPM has a clear 3-prong strategy to capture growth 1 Actively manage our portfolio Market growth rate High <10% 10% Low Other Top 5 Relative market share Push 2 Push inorganic inorganic growth growth Reinforce a seamless 3 Develop a truly integrated nationwide platform: Identity and brand building nationwide Cross-selling of products and services platform Sharing of resources Proximity to customers High Bolt-ons for existing sub-segments Acquisitions and start ups into new sub-segments Invest aggressively in our top performers Maintain and protect leadership positions in our cash generators Develop businesses with strong market growth rate, but not yet in leading positions (a) All amounts in this diagram are converted to US$ at the average 2011 exchange rate of US$1 = IDR 8,000. Source: Frost & Sullivan, management 9

11 II. RESULTS & FY13 OUTLOOK

12 consolidated revenue results 5,177 1, % ,781 2W Distribution + Retail Auto Consumer Parts Rental Finance Companies Elimination % Growth from LY +31% +15% +88% +25% All business units strongly outperform previous year results and are on track to realize FY2013 budget with revenue run rate of 52% 11

13 consolidated net profit after tax results +36% W Distribution + Retail Auto Consumer Parts Rental Finance Companies Head Office Minority Interest Elimination % Growth from LY +45% +1% +74% +79% +22% +34% MPM is successfully growing all of its business units while maintaining strong profitability 12

14 Robust capital structure +20% 10,879 Cash Net Debt (ST & LT Loans) (a) Mandatory Convertible Note Bank Funding for SAF and MPMFinance Payables 9,070 1, ,010 3,216 1,096 1, ,495 1,339 4, % -70% -100% +9% +22% +131% Total debt levels have decreased significantly Mandatory convertible note was converted into common shares of MPM at IPO Bank funding for the finance companies receivables and payables have increased consistent with the growth of MPM s operations Net debt to equity ratio not including funding for the finance companies has reduced significantly from 0.4x in 2012 to 0.05x in Book Value of Equity 1, MPM improved its capital structure in all fronts and is rapidly accumulating its retained earnings (a) ST & LT loans less cash 13

Outperforming the market Motorcycle sales 000 units Mulia MPMMotor Revenue 356 +26% 448 +13% 47 53 3,899 +31% 5,098 +17% 736 +16% 99 863 (a) 115 (a) FY13E +21% 8,128 9,854 Milestones Mulia

to sales volume growth: 2W Market: 6% - Honda: 12% Strong performance despite headwinds: Increase in Syariah down payment requirement in April Increase in BBM price in June Units sold in

15 Outperforming the market Motorcycle sales 000 units Mulia MPMMotor Revenue % % , % 5, % % (a) 115 (a) FY13E +21% 8,128 9,854 Milestones Mulia is significantly outperforming the market. to sales volume growth: 2W Market: 6% - Honda: 12% Strong performance despite headwinds: Increase in Syariah down payment requirement in April Increase in BBM price in June Units sold in the month of June reached a record high of 81.4K motorcycles Total dealership increased to 40 dealers In 2013, MPMMotor opened 2 new dealers Net Profit After Tax FY13E Makassar Pontianak (a) FY2013 Outlook % % FY13E Key Initiatives in 2H13 MPMMotor plans to open 1 dealer in Pamekasan, East Java in September

16 Outperforming the market (continued) 1 East Java is attractive and having a great motorcycle market because 2 GDP Contribution from Various Industries in East Java (a) Trade, Hotel, Resto Manufacturing Agriculture Services Transportation Finance Construction Mining Electricity 2% 1% 6% 5% 5% (a) Source : BPS (b) Bank Indonesia Surabaya 9% 15% 27% 30% % 35% 47% East Java is second largest contributor towards Indonesian economy; while GDP per capita ranked as tenth biggest compared to other provinces (a) 2. Its large size as second most populous province and diverse industry; in 2012, East Java s economy grew at 7.3% faster than national economy growth at 6.5% and aim 7.5% in 2013 (b) 3. Honda s market share in East Java (managed through Mulia) was always above Honda s market share nationally between 2007 and 2012 (c) % 37% 49% % 43% 47% ,173 9% 40% 51% % 29% 63% ,069 9% 25% 66% 2012 (c) Based on police registration data 15 Others Yamaha Honda

17 Good Volume Growth and Efficient Operations Led to Strong Financial Performance Operational Performance Total Sales Volume KL +10% 29,101 32, % 56,393 65,460 (a) FY13E Milestones MPM completed the acquisition of the 17% minority shareholding in FKT on 10 June 2013, making FKT a 100% subsidiary of MPM Through effective marketing, matic product sales volume in has increased by 144% compared to Revenue % 756 1, % 1,537 (a) Key Initiatives in 2H13 Product portfolio shift to further emphasize the higher growth matic segment Brand positioning rejuvenation FY13E Production plant expansion plan is moving into feasibility study Net Profit After Tax (b) +8% % (a) FY13E (a) FY2013 Outlook (b) Does not take into account reduction from minority interest 16

Combination of Organic and Non-organic Growth has Accelerated MPMRent s into the #2 Position Operational Performance

acquired in February 2013, which added a total of 1,830 cars as of FY13E Revenue 252 +88% 473 563 +64% 921 (a) PT

+74% 40 23 FY13E +48% 61 90 (a) FY13E Utilization rates have remained above 92% Key Initiatives in 2H13 Construction

18 Combination of Organic and Non-organic Growth has Accelerated MPMRent s into the #2 Position Operational Performance Milestones Total Fleet Size 6, % 12,104 7, % 14,066 (a) PT Grahamitra Lestarijaya was successfully acquired in February 2013, which added a total of 1,830 cars as of FY13E Revenue % % 921 (a) PT Surya Anugerah Kencana was successfully acquired in June 2013, which added a total of 1,280 cars Net Profit After Tax +74% FY13E +48% (a) FY13E Utilization rates have remained above 92% Key Initiatives in 2H13 Construction of driving school building is expected to complete by end of 2013 with operations to start on 1 April 2014 (a) FY2013 Outlook 17

19 Acquisition of PT Grahamitra Lestarijaya & PT Surya Anugerah Kencana PT Grahamitra Lestarijaya GMLJ as of 6 February 2013,had a vehicle utilization rate of 86.4%, an average long-term contracts tenor of 1.7 years and an average vehicle age of 3.1 years Fleet mix: 72% of Avanza, Xenia, & Innova Customer Composition by Industry % Professional Service (Consultant) 12% Telecommunication 9% Building & Construction 8% Chemical 8% Distribution & Logistics 8% Pharmacy 8% Bank / Finance 7% FMCG 7% Manufacturing 6% Transportation 5% Others 22% PT Surya Anugerah Kencana SAK as of 31 December 2012 had a vehicle utilization rate of 90.0%, an average long-term contracts tenor of 1.8 years and an average vehicle age of 2.5 years Fleet mix: 70% of Avanza & Xenia Customer Composition by Industry % Banking & Finance 27% State Owned Company 14% Pharmacy 10% Manufacturing 10% Distribution & Logistics 6% Food & Beverages 6% Insurance 6% Others 21% 18

20 Strong Performance Underlined by Growth in New Bookings Operational Performance New Booking +2% 1,139 1,167 2, % 2,552 (a) Milestones Total network grew from 45 branches and 87 outlets in to 47 branches, 8 sales offices and 85 outlets in Revenue +23% FY13E +26% (a) # of new accounts increased from 21,163 in to 30,385 in Weighted average Interest rates on new bookings has decreased from 20.0% in to 18.8% in The loan portfolio growth has increased NPL ratio > 90 days from 1.8% in to 2.2% in Net Profit After Tax IDR Billion +20% FY13E +14% (a) Key Initiatives in 2H13 Increase collection efforts to reduce NPL ratio to below 2.0% To increase network to 50 branches, 14 sales offices and 100 outlets FY13E (a) FY2013 Outlook 19

21 A Successful Turnaround from 2012 Operational Performance Milestones New Booking % % 1,056 (a) SAF has successfully turned around from a net loss into a profitable company # of new accounts increased from 31,314 in to 48,255 in Revenue FY13E Weighted average Interest rates on new bookings has increased from 24.2% in to 33.1% in % % 327 (a) NPL ratio > 90 days has decreased significantly from 3.2% in to 1.7% in Key Initiatives in 2H13 Net Profit After Tax FY13E Target to open 14 new Point of Sales, 10 in East Java and 4 in greater Jakarta +567% % 31 (a) Maintain NPL ratio > 90 days at 1.7 % in 2H FY13E (a) FY2013 Outlook 20

22 FY2013 Outlook Key metrics FY11 FY13 CAGR Profit & Loss () Net revenue 8,453 10,777 13, % Gross profit 875 1,618 2, % Net profit from continuing operations GP margin 10.3% 15.0% 15.7% % NP margin 3.2% 3.8% 4.3% FY2013 outlook has been revised upward due to strong performance and momentum Gross profit and net profit margin continues to improve due to stronger contribution from higher margin businesses units (automobile consumer goods, rental, and finance units) Net profit after minority interest Balance sheet () % Cash 166 1, ST & LT loans 219 1,911 1,905 MCNs (a) - 1,010 - Bank funding for SAF and MPMFinance (b) 836 3,216 3,427 Book value of equity 903 1,837 4,580 Despite the Company s rapid growth over the last two years, MPM s net debt level (c) is still at a comfortable level of IDR1,179 billion (US$118 million) as of end of FY13 - This implies net debt to equity ratio of approximately 0.3x (a) MCNs had been converted into common shares of MPM at IPO (b) Only commenced consolidation of MPMFinance borrowings in onwards (c) ST & LT loans less cash 21

23 Disclaimer These materials have been prepared by PT Mitra Pinasthika Mustika Tbk (the Company, MPM ) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. The Company or any of its affiliates, advisers or representatives accepts no liability whatsoever for any loss howsoever arising from any information presented or contained in these materials. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. These materials may contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as expects, plan, will, estimates, projects, intends, or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice. 22

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