LEAPING FORWARD, DELIVERING VALUE Company Update PT PP Presisi Tbk (PPRE) February 2018
TABLE OF CONTENTS 1 Company Overview 3 2 Business Overview 8 3 Corporate Strategy 14 4 2017 Operational & Financial Update 19 5 2018 Guidance 21 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 WHO WE ARE We Are a leading integrated heavy equipment-based construction company in Indonesia. Vision Mission To be a leading integrated construction company in Indonesia as well as regional To deliver business lines owned services on an integrated basis to provide value added services to all customers 4
Company Overview AT A GLANCE UNIQUE BUSINESS MODEL Heavy equipment-based contractor with various construction services LARGE SCALE Operating fleet of more than 1,900 units WIDE PORTFOLIO MULTIPLE AVENUES OF GROWTH Civil work, foundation, ready mix, form work, and equipment rental 2014-2017 CAGR : 115% 2017-2022 CAGR : 50% FINANCIAL STRENGTH Equity : Rp 2.6 trillion* Net Gearing Ratio : 0.1X HIGH MARGIN POSITIVE OPERATING CASH FLOW Notes: * Estimated FY 2017 Net Margin : 10% - 12% Positive Operating Cash Flow : Rp240 miliar* 5
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 6 November PP Presisi listed in IDX 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 : * OJK No : KEP 54/D.04/2017 **Bloomberg : Rp 406/share Listed in the IDX on Nov 24, 2017 @ Main Board Number of shares : 10.224.271.000 with 23% free float Member of Sharia Index* Market Cap 30 Jan 2018 : Rp 4.2 trillion 7
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 RECENT DEVELOPMENT Coal Hauling Contract Audited Financial Report PT Lancarjaya Mandiri Abadi (LMA), subsidiary of PPRE was awarded coal hauling contract for three years by PT Barasentosa Lestari, coal company that operates in South Sumatera. Consolidated financial statements for period ended December 31, 2017 currently is being audited by Hertanto, Grace, Karunawan as Independent Auditor. Its report will be released on 2 nd week of February 2018. 9
Business Overview UNIQUE BUSINESS MODEL integrated Civil Work Ready Mix Foundation Form Work Rental Infrastructure Projects Building Power Plant 10
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 December 2017 Total mobile fleet: 1,685 units Average age: 2.49 years 11
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 December 2017 Total non-mobile fleet: 147 units Average age: 4.33 years 12
Business Overview DIVERSIFIED CUSTOMER BASE Past and Present SOE Clients State Owned Enterprise Past and Present Private Clients International Domestic 13
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 15
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 Services Focus on Light Equipment & Perancah Focus on Heavy Equipment Ready Mix Concrete Business development HR System Improvement Contract with main contractors or project owners Heavy Equipment Fleet expansion Ready Mix Concrete business development Acquisition on civil work company Strengthen integrated construction Expanding to building & water related borepile, mechanical electrical, power plant erector, dredging, logistic & transportation Mining services SOEs synergy Global Strategic Alliances Explore the South East Asia Market Organic Growth Organic Growth Inorganic Growth 16
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 17
Corporate Strategy INTERNATIONAL STANDARD TO IMPROVE EXCELLENT OPERATION ISO 9001 : 2015 ISO 14001 : 2015 OHSAS 18001 : 2007 18
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 2017 NEW CONTRACT & ESTIMATED 2017 FINANCIALS 2017 New Contract (Rp trillion) Target Awarded * Achievement % 5.8 5.9 102% 2017 Financial Update (Rp billion) No Description Consensus Target 2017 estimated %* 1 Revenue 1,711 1,700-1,800 1,800-1,815 6.1% 2 Net Profit** 149 150-162 158-188 26.0% 3 EBITDA 475 508-567 570-590 24.3% * Increase/(decrease) comparing to Consensus **Net Profit After Minority Interest 20
5 2018 Guidance Bakaheuni-Sidomulyo Toll Road, Lampung Currently ongoing construction Part of the Trans Sumatra toll road, PP Presisi and LMA are working together in this project
2018 Guidance OPERATIONAL & FINANCIAL 2018 New Contract (Rp trillion) 2017 Awarded 2018 Target % 5.9 7.0-8.0 27% 2018 Target (Rp billion) No Description Target** Consensus 1 Revenue 4,420-4,910 *** 4,258 2 Net Profit* 434-445 434 3 EBITDA 1,335-1,483 1,283 4 Capex 1,528-1,697 n.a *Net Profit After Minority Interest **based on 23% IPO ***based on 35% IPO 22
2018 Guidance SOLID ORDER BOOK Rp trillion forecast 16.5 10.8 * Additional New Contract * Estimated 2017 23
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: corsec@pp-presisi.com 24