Company Update PT PP Presisi Tbk (PPRE) December 2017
TABLE OF CONTENTS 1 Company Overview 3 2 Business Overview 9 3 Corporate Strategy 16 4 2017 Operational & Financial Update 24 2
1 Company Overview Cikopo Palimanan (Cipali) Toll Road, 116 km, West Java Completed in 2015, the toll road is currently Indonesia s longest toll road LMA performed civil work service for the Cipali toll road
Company Overview VISION AND MISSION Vision To be a leading integrated construction company in Indonesia as well as regional Mission To deliver business lines owned services on an integrated basis to provide value added services to all customers 4
Company Overview KEY MILESTONES Equipment Rental Business Expand Business Portfolio Leap forward through organic and inorganic growth 2004 2014 2015 2016 2017 May Established as PT Prima Jasa Aldodua (PT PJA) which provided equipment rental service June Acquired by PT PP (Persero) Tbk ( PTPP ) and renamed as PT PP Alat Konstruksi ( PP Alkon ) July Renamed as PT PP Peralatan Konstruksi ( PP Peralatan ) June Started business transformation by entering Formwork business line September Entered Ready Mix business September Entered Civil Works business with focus on Toll Road and Dam projects May Renamed as PT PP Presisi ( PP Presisi ) June Acquired 51% stake of PT Lancarjaya Mandiri Abadi ( LMA ) July PTPP increased capital in PP Presisi 5 November PP Presisi listed in IDX 5
Company Overview POSITION OF PP S BUSINESS AMONG GROUP ** **9M2017 proforma post IPO 6
Company Overview SHAREHOLDING AND CORPORATE STRUCTURE Government of Republic Indonesia KKPSPP * Public 51.0% 0.08% 48.92% Public YKKPP ** 0.01% PT PP (Persero) Tbk 23.00% 76.99% 64.96% 99.98% 99.00% 99.98% PT PP Presisi Tbk PT PP Properti Tbk PT PP Urban PT PP Energi PT PP Infrastruktur Subsidiaries with shares below 50% 51.0% PT Lancarjaya Investama Abadi 49.0% PT Lancarjaya Mandiri Abadi (LMA) Note : (*) KKPSPP: Koperasi Karyawan Pemegang Saham PT PP (Persero) Tbk (**) YKKPP: Yayasan Kesejahteraan Karyawan Pembangunan Perumahan 7
Company Overview MANAGEMENT TEAM Average years of experience in Indonesia construction sector: 25 years+ Board of Directors 26 years experience in construction sector Ir. Iswanto Amperawan (President Director) Appointed as President Director since February 2017 Previously served as Head of Branch III (2015-2017) and Head of Branch V at Semarang (2013-2015) 12 years experience in construction sector Benny Pidakso, SE (Director) Appointed as Finance Director since March 2013 Previously served as Head of ASKU Branch VII at Bali (2011-2013) 23 years experience in construction sector Ir. Hasanin Ade Putra (Director) Appointed as Operation Director since August 2016 Previously served as Project Manager, EPC Division, PT PP (Persero) Tbk (2011-2016) 30 years experience in construction sector Ir. Arief Subyandono (Independent Director) Appointed as Director of PP Presisi since August 2017 Previously served as Director of PT PP Energi (2016-2017) Board of Commissioners 25 years experience in construction sector Ir. M. Toha Fauzi, MT (President Commissioner) Appointed as President Commissioner since February 2017 Appointed as Infrastructure Director of PT PP (Persero) Tbk since 2016 Previously served as Head of Operation Division II (2011-2016) 28 years experience in construction sector Ir Nawang Sri Retno Kartiko M.Eng (Commissioner) Appointed as Commissioner since February 2017 Appointed as Head of Supply Chain Management of PT PP (Persero) Tbk since 2016 Previously served as Head of Control and Bussiness PT PP Persero Tbk (2015-2016) 32 years experience in construction sector Ir. Ketut Darmawan (Independent Commissioner) Appointed as Commissioner since August 2017 Previously served as Operation Director of PT PP (Persero) Tbk (2011-2015) 8
2 Business Overview Solo Kertosono (Soker) Toll Road, 177 km, Central Java Construction is ongoing; Once completed, Soker will be Indonesia s longest toll road LMA is chosen as civil work service contractor in the Soker toll road
Business Overview ON POLE POSITION IN INDONESIA S INFRASTRUCTURE DEVELOPMENT As a construction equipment-based contractor, PT PP Presisi is on pole position to seek opportunities in Indonesia s infrastructure development. Government Infrastructure Spending Rptrillion % 450.0 4.0 3.9 400.0 4.5 4.0 Integration of Connectivity Infrastructures to Support Priority Zones 350.0 300.0 2.9 3.4 3.5 3.0 250.0 200.0 150.0 100.0 50.0-1.9 1.9 1.8 409 401 1.6 317 1.3 256 145 156 86 114 155 2010 2011 2012 2013 2014 2015 2016 2017E 2018E Infra Budget % of GDP 2.5 2.0 1.5 1.0 0.5 - Source: Statistic Bureau Centre, Indonesia State Budget Source: Indonesia State Budget 2017, Statistic Bureau Centre Infrastructure Projects in the Planned State Budget (RAPBN) 2018 Road 856 km Toll Road 25 km Railway 639 km Airport 15 locations Dam 47 units Public Towers 7,062 units Source: Minister of Finance 10
Business Overview UNIQUE BUSINESS MODEL Civil Work Ready Mix Foundation Form Work Rental Infrastructure Projects Building Power Plant 11
Business Overview LARGE SCALE FLEET (MOBILE) WITH REPUTABLE BRAND Excavator Dump Truck Bulldozer unit years unit years unit years unit Mixer Truck years unit Vibro Roller years October 2017 Total mobile fleet: 1,663 units Average age: 2.52 years 12
Business Overview LARGE SCALE FLEET (NON-MOBILE) WITH REPUTABLE BRAND Tower Crane Crawler Crane Passenger Hoist unit years unit years unit years unit Batching Plant years unit Bore pile years October 2017 Total non-mobile fleet: 147 units Average age: 4.33 years 13
Business Overview DIVERSIFIED CUSTOMER BASE Past and Present SOE Clients State Owned Enterprise Past and Present Private Clients International Domestic 14
Business Overview NATIONWIDE OPERATIONAL COVERAGE 15
3 Corporate Strategy Way Sekampung Dam, Pringsewu, Lampung Currently ongoing construction This is the first dam project by PP Presisi
Corporate Strategy CORPORATE STRATEGY 1 Expand the Company s heavy equipment capacity in order to meet and anticipate rapid demand for project s contracts 2 Acquire strategically positioned companies that own infrastructure facilities with sizable capacity 3 Continue to increase the number of internally and externally sourced projects 4 Improve innovation to generate higher value added services to the customers 5 6 7 Expanding overseas via joint operation (JO) as well as seeking strategic partners with multinational companies Optimize intra-group synergy and allow synergy as the basis for expanding customer base and increasing exposure to third parties Maintain consistency of excellent service delivery in term of time and quality by implementing ISO9001, ISO14001, OHSAS18001 management systems and applying integrated system with ERP-SAP 17
Corporate Strategy ROADMAP FOR THE NEAR-TERM FUTURE 2004-2012 2013 2015 2016 2017 2018 2021 Construction Equipment Rental Small Size Construction Equipment Rental Medium Size Contractor Construction Specialist Large Size Contractor Integrated Construction & Mining Company Focus on Heavy Equipment HR System Improvement Focus on Light Equipment & Perancah Ready Mix Concrete Business development Contract with main contractors or project owners Erector Power Plant Heavy Equipment Fleet Expansion Ready Mix Concrete Business development Acquisition on Borepile and/or Earth Work companies Structure work Civil work Ready Mix Mining contractor and/or Owner Acquisition on Borepile, Earth Work, and/or Logistic companies SOEs synergy Dredging Global Strategic Alliances Explore the South East Asia Market Organic Growth Organic Growth Inorganic Growth 18
Corporate Strategy BUSINESS TRANSFORMATION (PHASE 1) Heavy Equipment Rental Bekisting (Form Work) Civil Work Ready Mix Foundation (Bore Pile) Genuine expertise Started from light equipment rental for building development i.e. scaffolding Heavy equipment rental for building (TC & PH) Started from vertical formwork for building development Entered the full system formwork (vertical & horizontal) for building development Exploring new technology possibility to improve quality Started on 2016 at Bakauheni- Sidomulyo Toll Road by utilizing our heavy equipment fleet Increasing capacity by acquisition of LMA Started on 2015 under business alliance with Holcim Cement to serve PP Property Independently served the Ahmad Yani Airport and construction of Bakauheni- Sidomulyo and Medan-Kuala Namu-Tebing Tinggi (MKTT) Toll Roads B2B business model Started at Toll Bakauheni- Sidomulyo & Pandaan Malang Toll Roads Plan to enter borepile for building Seek inorganic opportunity to enter sea-borepile business line Our 5 (five) Businesses Lines 19
Corporate Strategy BUSINESS TRANSFORMATION (PHASE 2) Erector Mechanical Electrical Mining Contractor Transportation & Logistic Seek opportunity for erector work for IPP projects in PTPP and its subsidiaries as well as other SOEs and private business players as part of supporting the Government plans in the electricity sector Seek opportunity for high-rise building and EPC projects in PTPP and its subsidiaries as well as other SOEs and private business players, and Government Explore opportunity in Indonesia mining business Seek to pursue synergy with mining-related SOE companies (Antam, Bukit Asam, Inalum etc.) Explore opportunity in transportation and logistics business Plan to integrate current platform with logistic business in order to improve value added to customers Construction Business Non-Construction Business 20
Corporate Strategy OPERATIONAL EXCELLENCE IMPROVEMENT Equipment & Fleet Management Project Management ISO & OHSAS Certification ERP (SAP) Implementation Quick Response Unit (Call Center) ISO 9001:2015- Management Quality ISO 14001:2007 Environmental Management System OHSAS 18001:2015 - Occupational Health and Safety Management Systems 21
Corporate Strategy INTERNATIONAL STANDARD TO IMPROVE EXCELLENT OPERATION ISO 9001 : 2015 ISO 14001 : 2015 OHSAS 18001 : 2007 22
Corporate Strategy DOUBLE IMPACTS OF OUR IPO Expansion Purpose To Finance IPO Use of Proceeds Capex Working Capital 23% of new shares 70% for Capex 30% for Working Capital Financial Capability 30 September 2017 Proforma 30 September 2017 IPO Rp billion Rp billion Bigger Space for Leveraging 1,090 Net Gearing 0.84X 106 Net Gearing 0.05X 23
4 2017 Operational & Financial Update Ready Mix plant at Medan - Kuala Namu - Tebing Tinggi, 61.7 km, North Sumatra The plant ran at daily capacity of 90 cubic meter per hour The first ready mix plant owned and operated by PP Presisi
2017 Operational & Financial Updates 9M 2017 PROFIT & LOSS SUMMARY (in Rupiah Billion) 9M 2017 9M 2016 Δ YoY Revenues 930 251 679 271% Cost of Goods Sold -688-188 -500 266% Gross Profit 241 63 179 285% Operating Expenses -30-10 -20 208% Operating Profit 211 53 158 299% Depreciation & Amortization 111 40 71 177% EBITDA 322 93 229 246% Other Income 18 2 16 861% Other Expenses -13-3 -10 350% Impairment -3-2 -1 50% Leasing and Interest Expenses -59-19 -41 216% Total Other Expenses -57-21 -35 165% Pre-tax Profit 154 32 123 390% Corporate Income Tax -42-5 -37 754% Non-Controlling Interest -24 0-24 N/M Net Profit Attributable to the Owner of Company 89 27 62 234% 25
2017 Operational & Financial Updates 9M 2017 PROFIT & LOSS SUMMARY Revenue Gross Profit (Rp bn.) 930 (Rp bn.) 61% 371 187 32% 68% 223 42% 6% 52% 33% 20% 18% 28% 251 32% 22% 18% 28% 7% 14% 17% 32% Margin 35% 32% 26% 25% 26% Net Profit EBITDA (Rp bn.) * (Rp bn.) Margin 13% 13% 11% 11% 10% A : audited Un : unaudited 9M17 : consolidated with LMA * : after minority interest Margin 54% 47% 37% 37% 35% 26
2017 Operational & Financial Updates 9M 2017 FINANCIAL POSITIONS (Rp bn.) Net Fixed Assets (Rp bn.) Total Assets (Rp bn.) Debt* (Rp bn.) Equity ** A : audited Un : unaudited 9M17 : consolidated with LMA *interest bearing **before minority interest 27
2017 Operational & Financial Updates 2017 NEW CONTRACT* 2017 New Contract (Rp trillion) * Target Awarded Achievement % 5.8 5.9 102% *up to December 15, 2017 28
PT PP Presisi Tbk THANK YOU PT PP Presisi Tbk Plaza PP Jl. TB Simatupang No. 57 Pasar Rebo Jakarta 13760 Phone: +6221 8414119 Fax: +6221 8230353 Email: investor.relations@pp-presisi.co.id 29