Danareksa Snapshot. From Research: From Today s Headlines: (please see our analysts comment inside) From IDX: Wednesday, 16 April 2014

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1 Danareksa Snapshot Wednesday, 16 April 2014 From Research: Automotive sector: Mobilio is a game changer (Neutral) 4W demand remains resilient as new product offerings are luring more potential buyers. Honda Mobilio has been a game changer for Honda, putting the car manufacturer into the top three, with sales continuing to escalate. In March, Mobilio sales reached the 10,000 mark, and while still below Avanza s 16,315 units, Avanza s domination is increasingly threatened. LCGC sales weakened in March, however, mainly dragged down by poor Honda Brio Satya sales. LCGC sales accounted for 12% of total 4W sales in March, down from 15% in February. In our view, possible restrictions on the use of subsidized fuel by LCGC may adversely impact future demand. Unlike the solid growth in the 4W market, 2W sales only grew 1% yy in 1Q14 with sales reaching 1.98m units. From Today s Headlines: (please see our analysts comment inside) BBTN Shares Will Soon be Sold (BI) El Nino Threatens Palm Oil Production (BI) Metland Acquires Land Rp105 Billion (ID) From IDX: Cash announcement Code ExDate Date Payable Amount (Rp) BBNI 29Apr14 14May ITMG 29Apr14 14May PTPP 22Apr14 7May14 26 KAEF 21Apr14 8May14 10 TINS 17Apr14 7May14 56 SMBR 16Apr14 5May14 8 Listing announcement Date Term PT Eka Sari Lorena Transport 15Apr14 IPO (LRNA) Source: Stockwatch Key Index Close Chg Ytd Vol (%) (%) (US$ m) Asean 5 Indonesia 4, Thailand 1,389 (0.0) 7.0 NA Philippines 6, Malaysia 1, (0.7) 631 Singapore 3, ,422 Regional China 2,102 (1.4) (0.7) 14,054 Hong Kong 22,671 (1.6) (2.7) 8,256 Japan 13, (14.1) 10,499 Korea 1, (0.9) 2,830 Taiwan 8, ,978 India 22,485 (0.6) Nasdaq 4, (3.4) 87,258 Dow Jones 16, (1.9) 6,900 Currency and Interest Rate Rate ww mm ytd (%) (%) (%) Rupiah (Rp/1US$) 11,428 (1.2) (1.2) 6.1 SBI rate (%) 7.13 (0.0) (0.0) (0.1) 10y Govt Indo bond (0.1) (0.6) Hard Commodities Unit Price dd mm ytd (%) (%) (%) Coal US$/ton 73 n/a (1.8) (13.8) Gold US$/toz 1, (5.8) 8.1 Nickel US$/mt.ton 17,609 (0.7) Tin US$/mt.ton 23,452 (0.1) Soft Commodities Unit Price dd mm ytd (%) (%) (%) Cocoa US$/mt.ton 3,066 (0.0) Corn US$/mt.ton Crude Oil US$/barrel (1.3) Palm oil MYR/mt.ton 2, (5.8) 4.7 Rubber USd/kg (7.8) (20.8) Pulp US$/tonne 924 n/a Coffee US$/60kg bag 116 (1.4) (9.0) 17.8 Sugar US$/MT Wheat US$/mt.ton 261 (0.1) Source: Bloomberg See important disclosure on the back of this report

2 PT Danareksa Sekuritas Jl. Medan Merdeka Selatan No. 14 Jakarta Indonesia Tel (62 21) , Fax (62 21) Our Research team and sector coverage: Agriculture: Helmy Kristanto (6221) Automotive: Helmy Kristanto (6221) Auto Component: Joko Sogie (6221) ext.3512 Banking: Eka Savitri (6221) ext Cement: Helmy Kristanto (6221) Coal: Stefanus Darmagiri (6221) ext.3520 Construction: Joko Sogie (6221) ext.3512 Consumer: Helmy Kristanto (6221) Heavy Equipment: Stefanus Darmagiri (6221) ext.3520 Media: Lucky Ariesandi, CFA (6221) ext.3530 Metal Mining: Stefanus Darmagiri (6221) ext.3520 Pharmaceutical: Helmy Kristanto (6221) Property: Anindya Saraswati (6221) ext Retail: Anindya Saraswati (6221) ext Strategy: Helmy Kristanto (6221) Telecommunication: Lucky Ariesandi, CFA (6221) ext.3530 Utilities: Helmy Kristanto (6221) Technical Analyst: Lucky Bayu Purnomo (6221) ext.3508 Research Associate: Armando Marulitua (6221) ext.3503 Our Sales team: Ermawati A. Erman (62 21) ext Asfarita Andalusia (62 21) ext Kemal A. Uno (62 21) ext Novrita E. Putrianti (62 21) ext Ehrliech Suhartono (62 21) ext Yunita L. Nababan (62 21) ext Bram Taarea (62 21) ext Martin Joshua (62 21) ext Yofi Lasini (62 21) ext. 3133

3 Wednesday, 16 April 2014 NEUTRAL Jakmanu Index relative to JCI Index Jakamanu (LHS) Relative to JCI Index (RHS) Rp % 1, , , , 2 1, /16/2013 5/22/2013 6/27/2013 8/2/2013 9/9/ /15/ /20/ /26/2013 1/31/2014 3/10/2014 4/15/2014 ASII relative to JCI Index ASII (LHS) Relative to JCI Index (RHS) Rp % 8, , , , /16/2013 5/22/2013 6/27/2013 8/2/2013 9/9/ /15/ /20/ /26/2013 1/31/2014 3/10/2014 4/15/2014 IMAS relative to JCI Index IMAS (LHS) Relative to JCI Index (RHS) Rp % 6, , , , , /16/2013 5/22/2013 6/27/2013 8/2/2013 9/9/ /15/ /20/ /26/2013 1/31/2014 3/10/2014 4/15/2014 SECTOR UPDATE Mobilio is a game changer 4W demand remains resilient as new product offerings are luring more potential buyers. Honda Mobilio has been a game changer for Honda, putting the car manufacturer into the top three, with sales continuing to escalate. In March, Mobilio sales reached the 10,000 mark, and while still below Avanza s 16,315 units, Avanza s domination is increasingly threatened. LCGC sales weakened in March, however, mainly dragged down by poor Honda Brio Satya sales. LCGC sales accounted for 12% of total 4W sales in March, down from 15% in February. In our view, possible restrictions on the use of subsidized fuel by LCGC may adversely impact future demand. Unlike the solid growth in the 4W market, 2W sales only grew 1% yy in 1Q14 with sales reaching 1.98m units. 4W demand remains solid 4W sales in March reached 113,079 units, up 1% mm and 18% yy, and not far from the alltime high of 115k units reached in September Sales in March were mainly underpinned by solid sales in the LMPV segment, with Honda Mobilio continuing to enjoy strong demand and Toyota Avanza sales also improving mm. In the LCGC segment, however, sales were relatively weak in March, down 32% mm, mainly on poor sales of Honda Brio Satya, which slumped 79% mm. Cumulatively in 1Q14, total 4W sales climbed 11% yy to 328,356 units. In first place is still Toyota with market share of 34.6% (vs 35.2% in 1Q13), followed by Daihatsu s 15.7% (14.3%), Suzuki s 12.9% (12.2%) and Honda s 11.0% (9.0%). Honda Mobilio is advancing strongly After quadruple mm sales growth in February, Honda Mobilio continues to show buoyant sales with 10,592 units sold in March. Although Toyota Avanza sales also improved to 16,315 units, Honda Mobilio s strong market reception could lead to erosion in Avanza s market share in the LMPV segment. Daihatsu Xenia sales, meanwhile, dropped 29% mm to 3,640 units, ranking it third within the LMPV segment followed by Suzuki Ertiga s 3,475 units (+8.0% mm). For Honda, the launching of Mobilio is definitely a game changer, catapulting Honda into the top three from fifth place in January. Honda Mobilio sales accounted for a whopping 73% of Honda sales in March. However, we believe the sustainability of Mobilio s strong demand remains unclear, since it has largely been driven by large backlog orders. The LCGC segment weakened in March LCGC sales sank 32% mm in March, mainly dragged down by poor sales of Honda Brio Satya which slumped 72% mm to only 425 units from more than 2,000 units in JanFeb Similarly, Toyota Agya and Daihatsu Ayla sales were also down in March, although not as severely as Honda s. Agya sales reached 6,648 units, down 11% mm, while Ayla sales fell 6% mm to 4,333 units. Nonetheless, the Agya and Ayla duo continued to increase their market share to 82% within the LCGC segment. Overall, LCGC accounted for 12% of total 4W sales in March, or down from 15% in February. In our view, possible restrictions on the use of subsidized fuel by LCGC may adversely impact future demand. Helmy Kristanto (6221) helmyk@danareksa.com Danareksa research reports are also available at Reuters Multex and First Call Direct and Bloomberg. 2W sales only grew 1% yy in 1Q14 2W sales improved to 725,629 units in March, up 6.9% mm and 9.1% yy. Nonetheless, on a cumulative basis, overall 2W sales in 1Q14 only grew by 1% yy to 1.98m units, mainly held back by the weak January figure, which showed a 10% yy decline. Going forward, we believe that demand should continue to improve, although we don t expect full year growth to exceed the 5% level this year. Honda has been able to further increase its market share to 64% in 1Q14 from 62% last year, while Yamaha sales dropped to 31% from 33% last year. See important disclosure on the back of this report

4 4W demand remains solid, up 11% yy in 1Q14 New model offerings at attractive prices have been the key development in Indonesia s 4W market. The advent of LCGC last year, supported by the most recent addition to the LMPV segment, the Honda Mobilio, has helped to sustain demand at a high level. As these new products effectively open up new market segments, sales can continue to grow further going forward. 4W sales in March reached 113,079 units, up 1% mm and 18% yy, and not far from the alltime high of 115k units reached in September Sales in March were mainly underpinned by solid sales in the LMPV segment, with Honda Mobilio continuing to enjoy strong demand and Toyota Avanza sales also improving mm. In the LCGC segment, however, sales were relatively weak in March, down 32% mm, mainly on poor sales of Honda Brio Satya, which slumped 79% mm. Cumulatively in 1Q14, total 4W sales climbed 11% yy to 328,356 units. Exhibit 1. 4W sales grew 11% yy in 1Q W sales, '000 units Aug12 Sep12 Oct12 Nov12 Dec12 Jan13 Feb13 Mar13 Apr13 May Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Dec13 Jan14 Feb14 Mar ASII market share, % 4W sales, '000 units Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales of the duo brands under Astra, Toyota and Daihatsu, continued to dominate the market. In the 4W segment, the number one player is still Toyota with market share of 34.6% (vs 35.2% in 1Q13), followed by Daihatsu s 15.7% (14.3%), Suzuki s 12.9% (12.2%) and Honda s 11.0% (9.0%). For Honda, its market share has improved significantly lately, and in March, it ranked third, with sales underpinned by the extraordinary success of Mobilio. Exhibit 2. Mobilio has helped Honda to improved its rank 3M13 3M14 3M13 3M14 4W sales, '000 units W market share 40% 35% 30% 25% 20% 15% 10% 5% 35% 35% 14% 16% 12% 13% 11% 9% 6% 4% 0 Toyota Daihatsu Suzuki Honda Nissan 0% Toyota Daihatsu Suzuki Honda Nissan 2

5 Exhibit 3.Full monthly breakdown of LMPV sales Honda Mobilio is advancing strongly The battle is definitely on in the Low MPV segment with Honda Mobilio s sales breaking through the crucial 10,000 units level. After quadruple mm sales growth in February, Honda Mobilio continues to show buoyant sales with 10,592 units sold in March. Although Toyota Avanza sales also improved to 16,315 units, Honda Mobilio s strong market reception could lead to erosion in Avanza s market share in the LMPV segment. Daihatsu Xenia sales, meanwhile, dropped 29% mm to 3,640 units, ranking it third within the LMPV segment followed by Suzuki Ertiga s 3,475 units (+8.0% mm). For Honda, the launching of Mobilio is definitely a game changer, catapulting Honda into the top three from fifth place in January. Honda Mobilio sales accounted for a whopping 73% of Honda sales in March. However, we believe the sustainability of Mobilio s strong demand remains unclear, since it has largely been driven by large backlog orders Type Price (Rp mn) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Totoya Avanza All New 1.3 E M/T ,394 3,344 2,059 1,993 1,882 1,626 1,894 1,395 3,938 1,969 2,256 2,671 27,421 All New 1.3 E A/T ,912 All New 1.3 G M/T ,938 9,569 8,122 12,039 9,313 11,014 12,299 8,446 9,451 10,464 11,440 8, ,017 All New 1.5 G M/T ,279 All New 1.3 G A/T ,274 Veloz 1.5 M/T ,062 2,240 1,795 3,250 3,052 2,891 3,494 2,427 3,654 2,843 3,054 3,027 33,789 Veloz 1.5 A/T ,117 1,563 1,228 1, ,079 1, ,153 12,764 Total Avanza 17,471 16,760 14,333 19,798 17,033 18,094 21,306 14,355 20,065 17,809 19,013 17, ,456 Daihatsu Xenia D MT ,547 M MT ,718 X MT ,443 1,604 2,181 1,477 2,251 1,874 1,971 1,260 1,707 1,225 1, ,858 R MT ,975 3,427 3,456 2,999 3,204 2,844 3,181 2,667 1,282 2,935 1, ,785 R AT ,703 Total Xenia 5,905 6,283 7,141 5,660 6,363 5,945 6,251 4,961 5,000 5,918 3,261 1,923 64,611 Suzuki Ertiga GA M/T GL Double Blower ,177 3,095 1,774 2,599 1,601 2,037 2,423 2,034 2,192 1, ,248 24,660 GX Double Blower ,234 3,657 1,902 3,095 1,734 2,148 2,307 2,266 2,355 2, ,046 27,560 GL Double Blower A/T ,146 1, ,289 GX Double Blower A/T ,176 1, ,349 GX M/T Elegant Plus GX A/T Elegant Plus Total Ertiga 5,467 6,784 3,702 5,917 4,022 6,555 6,834 5,627 6,010 4,390 2,610 5,399 63,317 Honda Mobilio S 1.5 M/T E 1.5 M/T 179 E 1.5 CVT A/T Prestige 1.5 CVT A/T 198 Total Mobilio 2014 Type Price (Rp mn) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Totoya Avanza All New 1.3 E M/T ,791 3,484 2,948 9,223 All New 1.3 E A/T All New 1.3 G M/T ,113 6,991 7,521 22,625 All New 1.5 G M/T , ,661 All New 1.3 G A/T ,187 Veloz 1.5 M/T ,627 2,289 3,075 7,991 Veloz 1.5 A/T , ,004 Total Avanza 16,312 15,708 16,315 48,335 Daihatsu Xenia D MT ,055 M MT X MT ,919 2, ,464 R MT ,284 1,847 1,531 5,662 R AT Total Xenia 4,636 5,137 3,640 13,413 Suzuki Ertiga GA M/T GL Double Blower , ,046 4,280 GX Double Blower ,315 1, ,821 GL Double Blower A/T GX Double Blower A/T ,873 GX M/T Elegant Plus GX A/T Elegant Plus Total Ertiga 5,378 3,216 3,475 12,069 Honda Mobilio S 1.5 M/T ,059 E 1.5 M/T 179 1,043 1,646 2,042 4,731 E 1.5 CVT A/T ,952 5,897 9,016 Prestige 1.5 CVT A/T ,139 2,203 3,535 Total Mobilio 1,508 6,241 10,592 18,341 3

6 Mobilio s bestselling models are the more expensive ones: the E1.5 CVT with automatic transmission and a price tag of Rp189.5m/unit, accounting for more than half of Mobilio s sales in March. We have been of the view that Honda s market segmentation is rather different than that of Toyota/Daihatsu. In Honda s case, the company targets the upper end of its market segments as we can see in LCGC as well as LMPV. Unlike Honda, however, the bestselling models of both Toyota and Avanza are in the mid segment and only have manual transmission, making them the typical entry car or operational car for corporates. The Toyota Avanza 1.3G with manual transmission has consistently been the bestselling Avanza (at Rp179.1m/unit), while the Daihatsu Xenia 1.3 X and 1.3R (Rp m/unit) have been the bestselling Xenia models. Given this, we believe that the market segmentation for Honda Mobilio is slightly different and that the car is more targeted toward the premium segment within the LMPV market, or similar to Honda s overall strategy in the LCGC segment. Exhibit 4. Mobilio s bestselling model is the more expensive one Units 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 All New 1.3 E A/T All New 1.3 G A/T Veloz All New 1.5 A/T 1.5 G M/T Veloz 1.5 M/T All New 1.3 E M/T All New 1.3 G M/T Jan Feb Mar Toyota Avanza Daihatsu Xenia Suzuki Ertiga Honda Mobilio M MT 1.0 R AT 1.3 D MT 1.0 R MT 1.3 X MT 1.3 GA M/T GL Double Blower A/T GX Double Blower A/T GL Double Blower GX Double Blower S 1.5 M/T Prestige 1.5 CVT A/T E 1.5 M/T E 1.5 CVT A/T Totoya Avanza Daihatsu Xenia Suzuki Ertiga Honda Mobilio With the huge improvement in Mobilio sales in March, LMPV accounted for 33% of the total 4W sales in Indonesia, or up from 29.8% in JanuaryFebruary. This partly dispels concerns that LCGC will further dilute market share of LMPV. The LCGC segment weakened in March In contrast to the improvement in LMPV, we have started to notice some weakness in LCGC demand. LCGC sales sank 32% mm in March, mainly dragged down by poor sales of Honda Brio Satya which slumped 72% mm to only 425 units from more than 2,000 units in JanFeb Similarly, Toyota Agya and Daihatsu Ayla sales were also down in March, although not as severely as Honda s. Agya sales reached 6,648 units, down 11% mm, while Ayla sales fell 6% mm to 4,333 units. Nonetheless, the Agya and Ayla duo continued to increase their market share to 82% within the LCGC segment. Overall, LCGC accounted for 12% of total 4W sales in March, or down from 15% in February. 4

7 Exhibit 5. Agya and Ayla still dominates the LCGC segment Units 3,000 2,500 2,000 1,500 1, E A/T E M/T G A/T G A/T TRD G M/T TRD Jan Feb Mar Toyota Agya Daihatsu Ayla Honda Brio Suzuki Wagon R G M/T M A/T D+ M/T M M/T X A/T X M/T S 1,2 MT A 1,2 MT E 1,2 MT R GA 1.0 MT R GL 1.0 MT R GX 1.0 MT Toyota Agya Daihatsu Ayla Honda Brio Satya Suzuki Wagon R In our view, possible restrictions on the use of subsidized fuel by LCGC may adversely impact future demand. As such, the LMPV and city cars (above 1,300 cc) are likely to benefit from a possible shift in demand from LCGC. Nonetheless, as the fuel consumption of LCGC is much lower due to smaller engine sizes, the overall operational cost with non subsizided fuel should not be that much different compared to LMPV/city cars with subsidized fuel. LCGC fuel efficiency can reach 22km per liter vs 1015km per liter for LMPV. Exhibit 6. LCGC and Low MPV market share Total 4 W Sales LMPV Mkt Share (RHS) LCGC Mkt Share (RHS) '000 units % Jan13 Mar13 May13 Jul13 Sep13 Nov13 Jan14 Mar14 '000 units Other Low MPV LCGC Jan13 Mar13 May13 Jul13 Sep13 Nov13 Jan14 Mar14 5

8 Exhibit 7. LCGC monthly sales (Unit) Type Price (Rp mn) Sep Oct Nov Dec Total 2013 Share % Jan Feb Mar Total 1Q14 Share % Toyota Agya E M/T , E A/T G M/T ,622 1,790 2,304 2,240 7, ,113 2,296 2,364 6, G A/T ,092 1,567 1,042 4, , ,307 3, G M/T TRD ,080 1,568 4, ,650 2,086 1,376 5, G A/T TRD ,048 1,230 1,099 4, ,320 1,719 1,135 4, Total Agya 4,123 5,343 6,592 6,310 22,376 6,522 7,461 6,648 20, Daihatsu Ayla D M/T D+ M/T M M/T ,237 1, ,084 4, ,154 2, M A/T X M/T ,847 2,156 2,661 2,385 9, ,038 2,488 1,907 6, X A/T ,083 1, , , X ELEGANT AT Total Ayla 4,377 4,929 5,098 4,737 19, ,774 4,590 4,333 12, Honda Brio Satya A 1,2 MT S 1,2 MT , , , , E 1,2 MT ,633 1,056 2, , , Total Brio Satya 1,320 2,110 1,527 4, ,297 2, , Suzuki Wagon R R GA 1.0 MT R GL 1.0 MT , , ,010 1,080 2, R GX 1.0 MT ,628 1,023 2, ,024 1, , Total Wagon R 3,015 1,690 4, ,693 2,158 2,037 5, The launch of Datsun Go has been anticipated this year, especially as it offers larger seating capacity. We believe that the competitive landscape in the LCGC segment will get more intense, but we also believe that both Toyota and Daihatsu will be able to maintain their dominance. Exhibit 8. LCGC and city car monthly sales Unit 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Sep13 Honda Brio Satya Daihatsu Ayla Astra LCGC Mkt Share (RHS) 51% 49% 46% 11% Oct13 43% Nov13 18% 30% 39% 13% Dec13 Toyota Agya Suzuki Wagon R % 12% 12% 13% 80 33% 26% 60 28% 40 44% 46% 46% 20 11% 16% 13% 0 Jan14 Feb14 Mar14 Honda Brio Toyota Etios Mitsubishi Mirage Nissan March KIA Picanto Suzuki Splash Daihatsu Sirion 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Jan13 Feb13 Mar13 Apr13 May13 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Dec13 Jan14 Feb14 Mar14 6

9 2W sales only grew 1% yy in 1Q14 2W sales improved to 725,629 units in March, up 6.9% mm and 9.1% yy. Nonetheless, on a cumulative basis, overall 2W sales in 1Q14 only grew by 1% yy to 1.98m units, mainly held back by the weak January figure, which showed a 10% yy decline. Going forward, we believe that demand should continue to improve, although we don t expect full year growth to exceed the 5% level this year. Exhibit 9. Flat growth in 2W sales W sales, '000 units ASII market share, % 2W sales, '000 units Aug12 Sep12 Oct12 Nov12 Dec12 Jan13 Feb13 Mar13 Apr13 May13 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Dec13 Jan14 Feb14 Mar Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Competition is not as lively in the 2W market as it is in the 4W market. Honda has been able to dominate the market, and this should remain the case in the medium term. In fact, Honda has been able to further increase its market share to 64% in 1Q14 from 62% last year, while Yamaha s sales have slipped to 31% from 33% last year. Exhibit 10. Further improvement on Honda market share 2W sales, '000 units M13 3M Honda Yamaha Suzuki Kawasaki 66% 64% 62% 60% 58% 56% 54% 52% 50% Honda market share (LHS) Yamaha market share (RHS) Sep12 Oct12 Nov12 Dec12 Jan13 Feb13 Mar13 Apr13 May13 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Dec13 Jan14 Feb14 Mar14 39% 37% 35% 33% 31% 29% 27% 25% 7

10 Given the potential slowdown in economic growth and the higher interest rates environment, we expect overall 4W and 2W demand growth to slow to 3.3% and 4.5%, respectively. Nonetheless, any fasterthanexpected improvement in macroeconomic conditions would offer upside potential to our conservative estimates for So far this year, the 4W demand shows some resiliency, suggesting we are rather too conservative at this stage. We maintain our BUY call on Astra International with a TP of Rp 8,050. Note, however, that we have recently removed Astra from our list of top picks given less potential upside following stellar share price performance in 1Q13. We also believe that if Jokowi does become president of Indonesia, then some new regulations might be issued which could adversely impact the 4W sector. Recently, the government indicated that it might forbid the use of subsidized fuel by LCGC. 8

11 DISCLAIMER The information contained in this report has been taken from sources which we deem reliable. However, none of P.T. Danareksa Sekuritas and/or its affiliated companies and/or their respective employees and/or agents makes any representation or warranty (express or implied) or accepts any responsibility or liability as to, or in relation to, the accuracy or completeness of the information and opinions contained in this report or as to any information contained in this report or any other such information or opinions remaining unchanged after the issue thereof. We expressly disclaim any responsibility or liability (express or implied) of P.T. Danareksa Sekuritas, its affiliated companies and their respective employees and agents whatsoever and howsoever arising (including, without limitation for any claims, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a results of acting in reliance upon the whole or any part of the contents of this report and neither P.T. Danareksa Sekuritas, its affiliated companies or their respective employees or agents accepts liability for any errors, omissions or misstatements, negligent or otherwise, in the report and any liability in respect of the report or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expresses disclaimed. The information contained in this report is not be taken as any recommendation made by P.T. Danareksa Sekuritas or any other person to enter into any agreement with regard to any investment mentioned in this document. This report is prepared for general circulation. It does not have regards to the specific person who may receive this report. In considering any investments you should make your own independent assessment and seek your own professional financial and legal advice. 9

12 BBTN Shares Will Soon be Sold (BI) The government gave a strong signal to sell the shares of PT Bank Tabungan Negara (BBTN) to Bank Mandiri (BMRI) which will be decided in the extraordinary general meeting of shareholders on May 21, Director of BTN justify there will be a change of ownership of the company's shares. Comment: We have not obtained detailed information regarding this corporate action. Yet if Extraordinary AGM decided to approve such plan, we believe BBTN will benefit more, particularly for its funding given that BBTN had LDR of 103.4% as of December (Eka) El Nino Threatens Palm Oil Production (BI) The production of Crude Palm Oil (CPO) in Southeast Asia increasingly threatened by the prediction of upcoming El Nino this year. Data from the Commodity Weather Group shows the projected decline in precipitation if El Nino come sooner. And yet the volume of production has been diminished due to drought during the middle of January to March. CPO contract prices for June delivery rose 30 points to 2,665 ringgit per tonne. Metland Acquires Land Rp105 Billion (ID) MTLA will complete the acquisition of the land area of 70 ha in Cibitung, Bekasi, West Java. The acquisition value is about Rp105 billion. Currently, MTLA has development permit area of 440 ha in the area. The Company has acquired land about 300 ha, while the rest 140 ha will be gradually acquired within the next two years. Comment: The Cibitung land acquisition has been included in this year s total capex of Rp600 bn. We see a good prospect of Metland Cibitung project in the future, since this project will be supported by the infrastructure development (toll road and double track railway). (Anindya) In the interest of timeliness, this product was not edited

13 Equity Valuation Price Mkt Cap Net profit, Rp bn EPS (Rp) EPS Growth PER (x) EV / EBITDA (x) PBV (x) Net Gearing ROE Rating Price (Rp) Target Rp Bn Danareksa Universe 2,724, , , , % 14% Auto 328,380 19,844 23,420 28, % 22% Astra International BUY 7,725 8, ,735 19,417 21,600 26, % 24% Gajah Tunggal BUY 2,030 2,550 7, ,455 1, % 3% Multistrada HOLD , % 80% Selamat Sempurna HOLD 3,950 3,350 5, % 25% Banks 850,729 64,296 72,268 81, % 13% BCA HOLD 11, 10, ,671 14,254 15,741 17, % 13% NA NA NA 22.6 BNI BUY 4,995 5,400 93,150 9,058 10,319 11, % 14% NA NA NA 20.0 BRI BUY 9,850 10, ,991 21,218 23,830 26, ,080 12% 12% NA NA NA 27.2 Bank Tabungan Negara BUY 1,270 1,400 13,418 1,562 1,794 2, % 15% NA NA NA 14.7 Bank Mandiri BUY 9,750 10, ,500 18,204 20,584 23, ,001 13% 13% NA NA NA 21.8 Cement 202,056 11,334 11,294 11, % 0% Holcim HOLD 2,800 2,300 21, ,274 1, % 15% Indocement HOLD 23,400 21,300 86,141 5,012 4,839 5,215 1,362 1,315 1,417 3% 8% net cash 21.1 Semen Indonesia BUY 15,925 17,500 94,459 5,370 5,180 4, % 10% Construction 68,736 3,017 4,168 4, % 7% Jasa Marga BUY 5,975 7, 40,630 1,335 2,196 2, % 1% Wijaya Karya BUY 2,265 2, 13, % 21% net cash 19.2 Pembangunan Perumahan BUY 1,805 1,750 8, % 15% Adhi Karya HOLD 3,030 1,830 5, % 16% Waskita Karya HOLD , % 11% net cash 14.8 Consumer 435,012 12,342 14,833 16, % 12% Indofood CBP BUY 10,050 13,050 58,601 2,225 2,949 3, % 25% net cash 21.7 Indofood HOLD 7,150 7,050 62,780 2,504 3,191 3, % 6% Kalbe Farma HOLD 1,515 1,350 71,016 1,922 2,471 2, % 17% net cash 24.3 Unilever HOLD 30,675 28, ,050 5,353 5,775 6, % 5% Nippon Indosari Corpindo BUY 1,140 1,400 5, % 31% Mandom BUY 13,900 13,600 2, ,075 12% 20% Heavy Equipment 83,474 5,116 5,730 6,601 1,119 1,254 1,444 12% 15% Hexindo Adiperkasa HOLD 3,900 3,175 3, % 9% United Tractors BUY 21,500 23,300 80,198 4,834 5,382 6,220 1,296 1,443 1,667 11% 16% net cash 15.6 Mining 142,642 8,400 11,464 13, % 22% Adaro Energy BUY 970 1,220 31,026 2,370 3,167 3, % 2% Timah BUY 2,080 2,025 10, % 13% net cash 12.4 Vale Indonesia BUY 3,490 3,400 34, ,009 1, % 23% net cash 5.2 Aneka Tambang HOLD 1,105 1,000 10, ,063 2, % 115% Bukit Asam HOLD 9,575 11,050 22,062 1,826 2,113 2, ,126 16% 23% net cash 23.3 Indo Tambangraya Megah HOLD 24,900 30,000 28,135 2,373 2,863 3,281 2, 2,534 2,904 21% 15% net cash 25.9 Harum Energy HOLD 2,120 2,850 5, % 4% net cash 15.9 Plantation 82,496 3,210 5,089 6, % 21% Astra Agro Lestari HOLD 27,225 24,700 42,872 1,834 2,527 2,918 1,165 1,604 1,853 38% 15% net cash 25.0 Sampoerna Agro BUY 1,995 2,200 3, % 51% BW Plantation BUY 1,310 1,380 5, % 54% PP London Sumatra BUY 2,310 2,130 15, % 5% net cash 13.8 Salim Ivomas Pratama BUY , , % 29% Property 72,240 6,273 5,777 6, % 10% Alam Sutera BUY ,905 1,286 1,658 1, % 14% Bumi Serpong Damai BUY 1,585 1,960 27,733 2,432 1,896 1, % 5% net cash 15.4 Metropolitan Land BUY , % 24% Surya Semesta Internusa BUY , % 4% net cash 28.9 Lippo Karawaci BUY 1,125 1,040 25,962 1,596 1,102 1, % 15% Telco 293,990 12,456 15,757 18, % 20% XL Axiata HOLD 4,850 5,500 41,392 1,033 (430) (50) % 279% (96.3) Indosat BUY 3,820 4,500 20,758 (2,782) (512) % 24% Telkom BUY 2,300 2, ,840 14,205 15,459 17, % 8% net cash 23.5 Utility 130,904 7,713 9,219 8, % 7% PGN BUY 5,400 6, ,904 7,713 9,219 8, % 7% net cash 31.4 Retail 33,628 1,176 1,404 1, % 21% Mitra Adi Perkasa HOLD 6,325 6,350 10, % 26% Ramayana HOLD 1,350 1,240 9, % 20% net cash 14.4 Ace Hardware HOLD , % 18% net cash 23.2

14 The leaders on Danareksa coverage Price as on Code 15Apr14 14Apr14 Chg, % ww, % mm, % YTD, % Rating Mitra Adi Perkasa MAPI 6,325 5, (1.2) (9.3) 15.0 HOLD Tower Bersama TBIG 6,275 6, BUY Waskita Karya WSKT (6.3) (7.5) 82.7 HOLD Ramayana RALS 1,350 1, (3.2) (5.6) 27.4 HOLD Bumi Serpong Damai BSDE 1,585 1, (3.6) (6.2) 22.9 BUY PP London Sumatra LSIP 2,310 2, BUY AKR Corporindo AKRA 4,855 4, (1.5) BUY Tiga Pilar Sejahtera Food AISA 2,110 2, (1.9) BUY Indocement INTP 23,400 22, (6.2) (2.5) 17.0 HOLD Adhi Karya ADHI 3,030 2, (8.6) (0.7).7 HOLD Sources: Bloomberg The laggards on Danareksa coverage Price as on Code 15Apr14 14Apr14 Chg, % ww, % mm, % YTD, % Rating Adaro Energy ADRO 970 1,010 (4.0) (1.0) (11.0) BUY Metropolitan Land MTLA (2.6) (3.5) (1.6) 16.6 BUY Astra Agro Lestari AALI 27,225 27,750 (1.9) HOLD Harum Energy HRUM 2,120 2,160 (1.9) (1.9) (6.6) (22.9) HOLD Bukit Asam PTBA 9,575 9,750 (1.8) (6.1) HOLD Aneka Tambang ANTM 1,105 1,125 (1.8) (2.2) 1.4 HOLD Telkom TLKM 2,300 2,340 (1.7) (0.9) BUY Indo Tambangraya Megah ITMG 24,900 25,325 (1.7) (12.6) HOLD XL Axiata EXCL 4,850 4,920 (1.4) (6.7) HOLD Bank Central Asia BBCA 11, 11,250 (1.3) HOLD Sources: Bloomberg

15 Disclaimer The information contained in this report has been taken from sources which we deem reliable. However, none of P.T. Danareksa Sekuritas and/or its affiliated companies and/or their respective employees and/or agents makes any representation or warranty (express or implied) or accepts any responsibility or liability as to, or in relation to, the accuracy or completeness of the information and opinions contained in this report or as to any information contained in this report or any other such information or opinions remaining unchanged after the issue thereof. We expressly disclaim any responsibility or liability (express or implied) of P.T. Danareksa Sekuritas, its affiliated companies and their respective employees and agents whatsoever and howsoever arising (including, without limitation for any claims, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a results of acting in reliance upon the whole or any part of the contents of this report and neither P.T. Danareksa Sekuritas, its affiliated companies or their respective employees or agents accepts liability for any errors, omissions or misstatements, negligent or otherwise, in the report and any liability in respect of the report or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expresses disclaimed. The information contained in this report is not be taken as any recommendation made by P.T. Danareksa Sekuritas or any other person to enter into any agreement with regard to any investment mentioned in this document. This report is prepared for general circulation. It does not have regards to the specific person who may receive this report. In considering any investments you should make your own independent assessment and seek your own professional financial and legal advice.