#1237 93 00 8 803 858 144 4747 007 926 B #0000 A 714 CE AE 59 8 4001 147 A7 ww awo AD B F AE D15F2 B 5 903 IBF COA PT Link Net Tbk Company presentation October 2017 92 3 P 2 Link Net#2Link Net Disclaimer These materials are being made available to you for informational purposes only. It is not intended for potential investors and does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase securities of PT Link Net Tbk. (the "Company"), and nothing contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. All information herein reflects prevailing conditions as of the date of this presentation or as of the date specified in this presentation, all of which is subject to change. This presentation contains "forward-looking statements", which are based on current expectations and projections about future events, and include statements concerning the Company's future growth, operating and financial results and dividend policy and all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "plans", "could", "should", "predicts", "projects", "estimates", "foresees" and similar words and expressions or the negative thereof, as well as predictions, projections and forecasts of the economy or economic trends of the markets, which are not necessarily indicative of the future or likely performance of the Company, and projections and forecasts of their performance, which are not guaranteed. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, forward-looking statements are based only on current beliefs, assumptions, and expectations of management regarding the Company's future growth, network roll out and other expansion plans, operating and financial results (including its cash flow generation capacity) and dividend payout target. Because forward-looking statements relate to the future, they are inherently subject to significant known and unknown business, economic and competitive uncertainties, risks and contingencies, many of which are beyond the Company's control and difficult to predict, which could cause actual results to differ materially from those suggested by the forward-looking statements. These include competitive pressures in the Indonesia markets for broadband, cable TV and data communications services; changes in broadband technologies; disruptions or outages affecting the Company's network or other information technology infrastructure and systems; the Company's ability to successfully implement its growth strategies; decline in the Company's ARPU or profitability; increases in the Company's operational costs or capital expenditures; the Company's ability to successfully expand its network; physical or electronic security breaches, piracy, hacking or similar occurrences; changes in governmental regulations and increases in regulatory burdens in Indonesia; economic, social and political conditions in Indonesia; changes in the demographic environment in which the Company operates; actions by customers and suppliers; the Company's dependence on skilled personnel and sophisticated equipment; labor unrest and other difficulties; performance of global financial markets; fluctuations in foreign currency exchange rates; and other risks, uncertainties and factors. Therefore, readers of this communication are cautioned not to place undue reliance on forward-looking statements that speak only as of the date hereof. The Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements, except as required by law. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of these materials or the opinions contained therein. These materials have not been independently verified and will not be updated. These materials, including but not limited to forward-looking statements speak only as at the date of this presentation and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to supplement, amend, update or revise any materials, including any financial data or forward-looking statements, as a result of new information or to reflect future events or circumstances, except as required under applicable laws. Given the abovementioned risks, uncertainties and assumptions, you should not place undue reliance on these forecast and projections. Past performance is not necessarily indicative of future performance. This presentation contains or refers to certain non-GAAP financial measures, including EBITDA, EBITDA margin, EBITDA less cash capital expenditures and return on invested capital, that are not presented in accordance with Indonesian Financial Accounting Standards. The measures have been used by management as a supplemental measure of the Company's performance and liquidity. These measures may not be equivalent to similarly named measures used by other companies, and should not be considered as an alternative to performance or liquidity measures derived in accordance with Indonesian Financial Accounting Standards. This presentation also contains certain statistical data and analyses (the "Statistical Information") which have been prepared in reliance upon information furnished by the Company and/or third party sources for which the Company has either obtained or is in the process of obtaining the necessary consents for use. The Company has not independently verified the accuracy of any Statistical Information herein that has been attributed to third party sources. Numerous assumptions were used in preparing the Statistical Information, which assumptions may or may not appear herein. As such, no assurance can be given as to the Statistical Information's accuracy, appropriateness or completeness in any particular context, nor as to whether the Statistical Information and/or the assumptions upon which they are based reflect present market conditions or future market performance. You should not unduly rely on such information. Statistical Information provided by PT The Nielsen Company Indonesia ("Nielsen") is about demographic trends and not product performance and is aimed at Nielsen clients in the media space. Such information/data reflects estimates of market conditions based on samples, and is prepared primarily as a marketing research tool for media companies, advertising agencies and advertisers. Nielsen's Consumer Confidence information/data measures consumer sentiment and confidence in the future of the economy, expenditure and saving patterns and major concerns. Such information/data reflects the optimism of consumers of the overall economic condition which includes future job prospects, and the indication of how consumers will spend and save their money in the next 12 months. This information/data is for general information and research purposes only and should not be viewed as a basis for investments. Any references to Nielsen should not be considered as Nielsen's opinion or endorsement as to the value of any security or the advisability of investing in the Company. You should not construe any statements and/or information made in this presentation as tax or legal advice. No information set out in this presentation will form the basis of any contract. These materials have been prepared by the Company, and no other party accepts any responsibility whatsoever, or makes any representation or warranty, express or implied, for the contents of these materials, including its accuracy, completeness or verification or for any other statement made or purported to be made in connection with the Company and nothing in these materials or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. This presentation is not an offer of securities for sale in the Republic of Indonesia and does not constitute a public offering in Indonesia under the Indonesian Law No. 8 of 1995 on Capital Markets and its implementing regulations. 1#3Table of contents 1. Company overview 2. 3. 4. Key investment highlights Key strategies Financial overview 5. Appendix Link Net 2#4AE 4D15F B85 IBF COAD 00 AE D 100 100 2 AD 37 2014 59 BF 04E2 F 7 E B1ASE2E15 8 9264 0 390 Section 1 Company overview 147 LA 8 3 2 Link Net#5Link Net - The gateway to Indonesian consumer homes Link Net A leading HSBB (a) provider in Indonesia (b) with ~1.9m Homes passed Targets large and fast growing affluent segment(c). Large subscriber base (~1.1m RGUS) with low and stable churn Innovation led premium product offering supporting premium ARPUS with 97% bundling rate Link Net Strong enterprise portfolio offering with certain governmental and financial institutions including IDX as customers Note: Company data as of 30 June 2017 unless otherwise stated Track record of strong growth - 18% revenue CAGR(d) with 58% EBITDA (e) margin along with resilient balance sheet Technology neutral network with abundant capacity a) HSBB refers to High Speed Broadband which is a fixed network capable of providing internet speeds of at least 4Mbps b) Source: 2017 Media Partners Asia. Link Net is a leading HSBB provider in Indonesia in terms of subscriber market share as of 30 June 2017 according to Media Partners Asia c) 7.3m addressable homes - According to, and based on addressable market of Upper 1, Upper 2 and Middle 1 SEC households, as defined by, Nielsen (2Q17 definition of SEC classification) - For Greater Jakarta, Greater Bandung, Greater Surabaya (Includes Malang) and Medan. Nielsen reports based on number of people aged 10 and above. Addressable homes or households is derived by assuming each home or household has 4 people each d) Revenue CAGR over FY2014 to FY2016 e) Refers to 2016. EBITDA is a non-GAAP financial measure of the Company's performance and should not be considered as an alternative to performance measures derived in accordance with IFAS. Other companies may calculate this non-GAAP measure differently which limits its usefulness as a comparative measure. EBITDA margin is defined as EBITDA divided by revenue 4#6Link Net HSBB provider of SCALE, operating in the some of the most attractive metropolitan areas of Indonesia Medan Addressable households: 380k(a) . Homes passed: ~3.2k Greater Jakarta Addressable households: 5,157k(a) Homes passed: ~1.457m Estimated coverage ratio: ~28% (b) Estimated coverage ratio: ~1%(b) Batam Roll outs started in June 2017(c) 77% Bandung Addressable households: 580k(a) Homes passed: ~97k Estimated coverage ratio: ~17%(b) 5% Total addressable HH's: 7.3m (a) Total LN homes passed: 1.9m Total cable length: 24,890km . 18% Greater Surabaya & Malang Addressable households: 1,204k (a) Homes passed: ~351k Estimated coverage ratio: ~29%(b) Bali Focus on hotels Note: Company data as of 30 June 2017 unless otherwise stated City homes passed / Total homes passed a) According to, and based on addressable market of Upper 1, Upper 2 and Middle 1 SEC households as defined by, Nielsen (2Q17 definition of SEC classification) - For Greater Jakarta, Greater Bandung, Greater Surabaya (Includes Malang) and Medan. Nielsen reports based on number of people aged 10 and above. Addressable homes or households is derived by assuming each home or household has 4 people each b) Coverage ratio calculated as homes passed divided by the total addressable households (based on Nielsen data) c) Nielsen does not report SEC households data for Batam 5#7Key corporate milestones 1999 Launch of Cable TV services 2000 Launch of Internet services 2007-2008 Launch of broadband services and bundled packages ⚫ IPO (June) 2014 • Fully marketed secondary placement (Oct) Launched First Media Go (OTT application) 2015 Introduced SMART STB X1 HD (Android) and Speed Booster 2002 Sole provider to IDX of remote trading network Jun 2011 ⚫ Link Net acquires and begins operating the network and related assets ⚫ CVC invested in Link Net 2010 Launch of HD 1999 2000 2002 2007-2008 2010 Network owned and operated by First Media(b) Number of homes passed (c) ('000) 2016 Link Net 2017 2011 2013 2015 2014 2013 ⚫ 1 million homes passed Expanded network to Greater Surabaya and Bandung ⚫ First to offer 100 Mbps to the residential sector 2016 • Reached 1 million RGUS . Expanded network to Medan • Introduced FTTH services ⚫ Launched FM X, FM Smart Living, My FM app and Smart STB X1 4K • Offered 1Gbps high speed Internet connectivity Network owned and operated by Link Net 2017 • Acquired right to use the pan-Java backbone Shareholding(a) (31 July 2017): - First Media: 34.8% - CVC: 34.4% - Public: 30.8% Jun 2011 2011 2012 2013 2014 2015 2016 1H17 553 655 933 1,194 1,433 1,673 1,826 1,909 a) Based on 2,958,685,584 shares outstanding as at 31 July 2017, which excludes 83,693,800 treasury shares b) The Company acquired certain assets, liabilities and rights of use relating to the Network from PT First Media Tbk ("First Media") in June 2011 and commenced its current broadband and cable TV business thereafter. As of 31 July 2017, First Media held 34.8% of the outstanding shares of Link Net c) Number of homes passed are as at the end date for each period 6#8Operational Link Net Link Net has delivered since 2014 2014 commitment (a) Penetration Penetration rate 27.4% 28.7% (k) Homes passed +476 Homes passed 1,909 1,433 2014 ARPU(b) ARPU (IDRk/month) 402 RGUS (k) Revenue (IDRbn) >1.8m homes passed by 2016 as per 2014 commitment 1H17 419 +320 RGUS 1,075 755 Continued RGU growth 2014 1H17 17.7% CAGR(c) 3,212 2,136 Financial 2014 EBITDA (e) margin 57.6% LTM 1H17 (d) 58.2% EBITDA(e) (IDRbn) 18.2% CAGR (c) 1,869 1,231 2014 (d) LTM 1H17 a) Penetration rate calculated as number of broadband RGUS divided by homes passed Double digit top-line revenue growth Continued profitability growth; operational efficiencies b) ARPU is calculated by dividing revenue generated during a period by the number of total RGUS at the end of such period, then dividing the quotient by the number of months in such period c) 2014-LTM 1H17 CAGR calculated using a factor of 2.5 to account for the 2.5 years from 31 December 2014 to 30 June 2017 d) Last Twelve Months (LTM) 1H17 refers to the twelve months period ended 30 June 2017. The unaudited financial data for LTM 1H17 has been derived by adding the Company's financial data for 2016 to the financial data for 1H17 and subtracting the financial data for 1H16. The information is not indicative of the Company's results of operations for the full financial year ending 31 December 2017 or any interim period and may not reflect the Company's actual performance for the full financial year ending 31 December 2017 e) EBITDA is a non-GAAP financial measure of the Company's performance and should not be considered as an alternative to performance measures derived in accordance with IFAS. Other companies may calculate this non-GAAP measure differently which limits its usefulness as a comparative measure. EBITDA margin is defined as EBITDA divided by revenue 7#9AE D 100 100 2 AD 37 COM OM 2014 59 BF B U NO 04E2 F 7 E B1ASE2E15 8 Section 2 Key investment highlights 390 6336 8 147 LI A AZ 00 AE 4D15F B85 IBF COAD 3 2 Link Net#10Key investment highlights Link Net 1 Highly attractive long term fundamentals for Indonesia's fixed broadband and pay TV markets(a) 2 HSBB provider of significant scale and operating in some of the most attractive metropolitan areas of Indonesia with high barriers to entry(b) 3 Technologically resilient HSBB network Link Net 4 Compelling product offerings with superior service quality 6 5 Strong track record of profitable growth Strong balance sheet and significant cash flow generation have provided high ROIC and positions Link Net for further expansion 7 Experienced management team with a strong track record a) Indonesia is one of the most underpenetrated and fastest growing broadband and pay TV markets globally in terms of subscribers out of the top 20 largest global economies. Source: 2017 Media Partners Asia b) Source: 2017 Media Partners Asia 9#111 Indonesia's highly attractive long term fundamentals Rapid GDP and GDP/capita growth (c) Rising population growth Population (m) ~53% of population under 30 years of age Millennials with "internet lifestyle" "(a) Population CAGR: 1.3% (b) 259 2016 Increasing disposable income(d) Annual household disposable income (US$) 3,770 2016 Disposable income CAGR: 5.7% (b) Source: 2017 Media Partners Asia unless otherwise stated a) As of December 2015 Link Net Nominal GDP per capita (US$) GDP/Capita CAGR: 8.1% 3,598 5,312 Nominal GDP (US$bn) GDP CAGR: 9.5% (b) 276 2021F(b) 1,466 932 2016 2021F(b) Increasing urbanization (e) As % of population Urban 54% 66% 4,973 +12%(b) Rural 46% 34% 2021F(b) 2016 2030F(b) b) Indicates a forecast, which is inherently subject to various risks and uncertainties. Actual results and future events could differ materially c) Source: IMF Data (GDP refers to nominal GDP) d) Source: OECD Data e) Source: World Bank and IMF 10 10#12Highly attractive long term fundamentals for Indonesia's fixed broadband markets and pay TV markets Underpenetrated Broadband segment with ADSL being the dominant technology Broadband penetration (2016) Link Net Explosive growth in Broadband market driven by HSBB demand ~4.7x 7.7% 2.5% 5.2% ■ ADSL ■ HSBB Underpenetrated Pay TV segment Pay TV penetration (2016) (b) ~5.3x 10.5% 7.1% 3.4% Broadband subscribers Broadband penetration 5.9% 7.7% 9.8% 35.9% HSBB penetration 0.7% 2.5% 7.5% 6,831 5,090 CAGR (2016-21) 3,826 1,661 5,231 26% 426 3,400 3,429 1,600 (14)% (e) APAC (a) 2014 2016 2021F ■ ADSL (k) ■ HSBB (k) Explosive growth in Cable TV & IPTV markets Pay TV penetration 9.7% Pay TV subscribers 10.5% 12.4% 55.2% Cable TV + IPTV penetration 1.3% 3.4% 7.7% 5,796 CAGR 4,271 (2016-21) 3,744 2,225 3,243 2,890 3,571 (5)%(c)) 21% (d) 502 1,381 (a) APAC (e) 2014 2016 2021F ■DTH + DTT ■Cable TV + IPTV (k) ■DTH + DTT (k) ■Cable TV + IPTV Source: 2017 Media Partners Asia unless otherwise stated a) Refers to average APAC Broadband and Pay TV penetration rates respectively b) Pay TV penetration is as a % of TV households c) Refers to DTH and DTT CAGR d) Refers to Cable TV and IPTV CAGR e) Indicates a forecast, which is inherently subject to various risks and uncertainties. Actual results and future events could differ materially 11#1317.5% 15.0% 13.3% 4.2% 2 Link Net Link Net - Leading HSBB provider of scale and operating in some of the most attractive metropolitan areas of Indonesia... Operating in provinces with high GDP contribution...(a) % of national ...and in some of the most densely populated cities (a) GDP Total population (millions) 10.3 2.7 3.2 2.2 0.9 1.1 259 158 Population 2016 GDP(b) (US$ bn) 134 120 density Per km², 2016 15,479 15,345 9,143 8,299 37 6,207 1,538 136 Jakarta East Java (c) West Java (c) Rest of (d) Indonesia Jakarta Bandung Surabaya Medan Malang City Batam Indonesia City Link Net's large and fast growing addressable market(e) Anchor provider to affluent households in Indonesia Addressable homes (k) 7.1% CAGR Link Net 7,321 CAGR 6,609 Upper 1 Upper 1 3 Key Metropolitan Cities 10.4% Upper 2 Upper 2 547k, 27.5% Subs. market share Middle 1 Middle 1 - 4.5% 1,445k, 72.5% Others(f) 2015 2Q2017 Source: 2017 Media Partners Asia unless otherwise stated a) Source: Badan Pusat Statistik ("BPS") b) GDP assumes USD/IDR exchange rate of 13,322 c) Key cities in East Java include Gresik, Bangkalan, Mojokerto, Surabaya, Sidoarjo, Lamongan and in West Java includes Bandung d) Rest of Indonesia figure is the average of the remaining top 9 provinces as per BPS excluding Jakarta, East Java and West Java e) According to, and based on addressable market of Upper 1, Upper 2 and Middle 1 SEC households as defined by Nielsen (2Q17 definition of SEC classification) - For Greater Jakarta, Greater Bandung, Greater Surabaya (Includes Malang) and Medan. Nielsen reports based on number of people aged 10 and above. Addressable homes or households is derived by assuming each home or household has 4 people each f) Consists of 5 other key HSBB players in Indonesia g) Refers to P1's nationwide coverage which covers more than 10 cities on Java island, plus key cities in Sumatra (Medan, Banda Aceh, Bandar Lampung, Bengkasi, Palembang, Bengkulu), Kalimantan (Pontianak, Benjarmasin, Balikpapan, Samarinda), Sulawesi (Makassar) and Nusa Tenggara 12#142 ...with high barriers to entry Link Na Link Net High barriers to entry from... Access to Existing Subscribers: Existing subscribers reluctant to provide access for new cable laying, which would result in disruptions and a high degree of inconvenience Financial Capability: Able to invest in significant capital expenditure to improve existing network and support future expansion plans Strong Brand and Customer Base: Established position and significant market share results in attractive economies of scale in the long run Geographic focus Link Net's business profile Urban areas with high population density and GDP concentration (1.9m homes passed) Product focus Demographic focus Superior fixed broadband and pay TV offerings Source: 2017 Media Partners Asia unless otherwise stated a) According to, and based on addressable market of Upper 1, Upper 2 and Middle 1 SEC households as defined by, Nielsen (2Q17 definition of SEC classification) Affluent households Upper 1, Upper 2 & Middle 1(a) 33 13#15Link Net 3 Technologically resilient HSBB network Future proof network with abundant bandwidth capacity and high level of network redundancy Satelitte Dish Headend Fiber Optic Redundant Ring Headend Distribution hubs Distribution hub Node Node Node Node Network Monitoring Power Supply Tap Cluster Coax Distribution hub Subscriber premises Amplifier Drop cable 24,890 km of cable across Indonesia (a) Has access to a total of 780 Gbps of International bandwidth capacity Has the capability to operate at least 8 Tbps fiber lines to Singapore gateway Substantially self-owned last mile roll-out(b) Technologically agnostic approach to future rollout: HFC network in the existing brownfield areas and FTTH network to be rolled out in new areas rolled out within parts of existing coverage areas for enhancement FTTH network to be rolled-out in greenfield areas with market skewed to the fiber-centric infrastructure Offering a high quality network using HFC and FTTH capable of speeds up to 10 Gbps a) As of 30 June 2017 b) Limited exceptions for certain last mile owned by property developers 14#16Link Net ③ Technologically resilient HSBB network (cont'd) Link Net has already completed most of its end-to-end network infrastructure, assuring network quality and reducing future investment requirement International Gateway Inter-city Connection 2 proprietary international fibre lines/submarine cables (a) providing bandwidth to Singapore Jakabare and B2JS in submarine cables (a) + Intra-city Connection Vertically Integrated End-to-end Network Infrastructure Pan-Java backbone(a) + Last Mile Roll-out 24,890 km of cable network (b) 100% proprietary intra- city connection in all of the operating cities + Selective Usage of Third Party Network for Quality Substantially self-owned last mile roll-out(c) a) Link Net acquired an 11-year right to use the Jakabare submarine cables in 2011, a 15-year right to use the B2JS submarine cables in 2015 and a 15-year right to use the pan-Java backbone 2017 b) Total cable length includes HFC and FTTH c) Limited exceptions for certain last mile owned by property developers + 15#17Link Net 4 ④ Compelling product offerings with superior service quality Superior innovation-led product strategy and service quality WB 2012 30 Mbps 2013 100 Mbps • PVR 2012 FM Live You Tube Multi-Screen Interactive Experience with next generation cable OTT STB • 2013 50 HD channels 2015 200 Mbps 2014 • First Media Go SD 720 x 576 HD 1920 x 1080 4K ULTRA HD 3840 x 2160 mu FIRST 2016 1 Gbps 2015 . SMART STB X1 HD (Android) Speed Booster Ultra High Definition Resolutions Bringing Convenience to Subscribers via My FM App First Media Go with First Media X a) Based on average ARPU growth by vintages 2016 2017 ⚫ OTT Partnership (HOOQ) Anti-DDOS Cleanpipe • First Media X SMART STB X1 4K (Android) • 4G LTE - Wireless Bundle . My FM App FM Smart Living X SMART LIVING Smart Living Translate to increase upselling transactions per year On average ARPU increases 13% after 1 year subscription up to 75% in the 6th year (a) 16#184 IDRK (US$)(c) Link Net Compelling product offerings with superior service quality (cont'd) Wide range of product offerings to cater to different customer needs (a,b) 1 Gbps 167 channels (63 HD) 5,090 32 Mbps 100 Mbps 75 Mbps 167 channels (63 HD) 167 channels 2,185 (63 HD) 1,659 200 Mbps 167 channels (63 HD) 3,129 (US$364) 20 Mbps 12 Mbps 144 channels 167 channels (63 HD) 4 Mbps 122 channels (US$224) (52 HD) 103 channels (39 HD) 859 (29 HD) (US$156) 579 399 (US$119) 239(c) (US$61) (US$41) (US$17) (US$29) Family D'Lite Elite Supreme Maxima 1 2 3 4 5 Ultimate 6 Infinite Mach 1 7 8 ■ Entry-level package offering for subscribers with basic internet and TV channel needs ■Basic package offering for subscribers with basic internet and TV channel needs ■Incremental add-on packages which deliver faster internet and more TV channel genres ■ Package targeted for consumers who are looking for full access to high speed internet and all channels ■Designed for heavy users of high speed internet who require full access to all channels ■ Highest tier packages, offering the highest speed available from the Company combined with dedicated premium customer and technical service for users that demand the Company's best service available Note: As of July 2017 a) All price is including CPE rental, excluding 10% VAT and add-on channels. Total Link Net channel offering are 188 channels including 21 add-on channels (19 SD, 2 HD) b) Wireless Docsis 3.0 Modem (previously Docsis 2.0) and HD STB for FAMILY and D'LITE & Wireless Docsis 3.0 Wi-fi Modem and X1 4K STB (previously X1 HD STB) for ELITE. Prices for all packages exclude First Media X c) USD/IDR exchange rate of 14,000 17#195 Strong operating and financial track record Link Net Decreasing expense as % of revenues as business expands leading to industry leading margins 1,433 1,673 890 755 57.6% 56.5% 1,826 1,909 Homes passed (k) 1,024 1,075 RGUS (k) 58.4% 58.2% EBITDA margin(a) 17.7% Revenue CAGR (b) 18.2% EBITDA CAGR(c) 3,212 Revenue (IDRbn) 2,954 2,564 2,136 1,343 Operating expenses (d) 1,227 1,114 905 1,231 2014 1,869 EBITDA(a) 1,727 1,450 2015 2016 LTM 1 H17(e) a) EBITDA is a non-GAAP financial measure of the Company's performance and should not be considered as an alternative to performance measures derived in accordance with IFAS. Other companies may calculate this non-GAAP measure differently which limits its usefulness as a comparative measure. EBITDA margin is defined as EBITDA divided by revenue b) 2014-LTM 1H17 Revenue CAGR calculated using a factor of 2.5 to account for the 2.5 years from 31 December 2014 to 30 June 2017 c) 2014-LTM 1H17 EBITDA CAGR calculated using a factor of 2.5 to account for the 2.5 years from 31 December 2014 to 30 June 2017 d) Operating expenses defined as the summation of Cost of Revenue, Selling Expenses, General and Administrative Expenses and Other Expenses (Income) e) Last Twelve Months (LTM) 1H17 refers to the twelve months period ended 30 June 2017. The unaudited financial data for LTM 1H17 has been derived by adding the Company's financial data for 2016 to the financial data for 1H17 and subtracting the financial data for 1H16. The information is not indicative of the Company's results of operations for the full financial year ending 31 December 2017 or any interim period and may not reflect the Company's actual performance for the full financial year ending 31 December 2017 18#206 Link Net ⑥ Strong balance sheet and significant cash flow generation capabilities (IDRbn) Net cash with potential leverage capacity(a)(b) EBITDA less cash capex(c) (IDRbn) 531 Total Cash 154 Total Debt 377 243 Net Cash 2014 84.7% CAGR 481 831 381 56.2% CAGR 2015 2016 1H16 1H17 595 a) Net cash is defined as total debt (current portion of long-term debt and finance lease payables plus non current portion of finance lease payables) less cash and cash equivalents b) Total cash and debt as of 30 June 2017 c) EBITDA less cash capital expenditures (comprising purchases of property, plant and equipment for installation and purchase of intangible assets plus IDR140bn representing the one-time amount spent on acquisition of B2JS subsea cables in 2015) does not take into account the Company's mandatory debt service requirements or other non-discretionary expenditures and should not be relied on as a measure of the Company's residual cash flow available for discretionary expenditures. EBITDA less cash capital expenditure is a non- GAAP financial measure of the Company's liquidity, excludes components that are significant in understanding and assessing the Company's cash flows and should not be considered as an alternative to liquidity measures derived in accordance with IFAS. The Company's cash from operating activities was IDR1,182.6bn, IDR1, 181.7bn, IDR1,560.7bn, IDR632.4bn and IDR678.7bn for 2014, 2015, 2016 and the six months ended 30 June 2016 and 2017. The Company's cash used in investing activities was IDR1,039.7bn, IDR1,127.6bn, IDR744.6bn, IDR314.3bn and IDR380.6bn for 2014, 2015, 2016 and the six months ended 30 June 2016 and 2017. Other companies may calculate this non-GAAP measure differently which limits usefulness as a comparative measure 19#217 Experienced management team with a strong track record Link Net Irwan Djaja, Chief Executive Officer ■ Over 23 years of experience in auditing, consulting and corporate finance in various industries ■ Holds two doctorate degrees in Management and Law ■ Earned numerous accounting professional certifications ■ Has numerous leadership roles in leading successful companies under Lippo's TMT pillar to growth. Prior experiences include: CEO and CFO First Media, Berita Satu CEO and CFO of Link Net Timotius Sulaiman, Chief Financial Officer ■ Over 21 years of experience in auditing, accounting, in big five accounting firms, various leadership experience roles in multimedia and telco companies, including Orange TV, Nokia Siemens Network, and Mobile-8 Telecom Holds a master degree in Management Previously Director and CFO in BOLT 4G LTE Meena Adnani, Content Director ■ Over 23 years of experience in media, content and marketing and legal counsel ■ Previously EVP, Content Development and Business Affairs in PT First Media Tbk Sutrisno Budidharma, Sales Director ■ Over 27 years of extensive experience in leading product sales teams in banking and branch management in the banking sector Previously Business Development and Direct Sales Director in Link Net Desmond Poon, Chief Technology Officer & Product Director ■ Over 22 years of experience in technology, media and networks ■ Prior to joining Link Net, he was the VP/Head, Home Solutions & Architecture (SHINE) in StarHub Ltd, Singapore Liryawati, Chief Marketing Officer ■ Over 23 years of experience in area of marketing, sales and retail FMCG, major electronic company, and telco ■ Previously worked in Philip Morris International, Samsung Electronics and the last position held was CMO for BOLT 4G LTE Agus Setiono, New Roll Out Director ■ Seasoned leader in operations, marketing in major foreign bank with more than 28 years of experience in technology, media and networks ■ Prior to joining Link Net, he was the VP of Card Marketing in Citibank Indonesia Edward Sanusi, Chief Operation Officer ■ Over 21 years of experience in managing technology related business models for software development, ISP, Cable TV, social media, and system integration ■ Previously Director/CEO in PT Plexis Erakarsa Pirantiniaga (PlasMedia) Ferliana Suminto, Corporate Resource Director ■ Seasoned leader with more than 23 years of experience in finance, business development, information and communication technology, including an exposure in UPH, and PT. Matahari Putra Prima ■ Prior to joining Link Net, she was the Chief Financial Officer in PT. Indonesia Media Televisi Complementary skills and expertise with strong domestic and international track record 20 20#22AE 4D15F B85 IBF COAD 00 AE D 100 100 2 AD 37 2014 59 BF 0 1276 UNUENDOO36 04E2 F 7 B1ASE2E15 E 8 3890 Section 3 Key strategies 147 8 3 2 Link Net#23Description Focus Four strategic growth pillars Maintain expansion momentum through strategic roll-out Maximize capital utilization through intensifications Cementing position as a leading HSBB provider of choice Link Net Continued expansion of enterprise business Extend strategic partnerships & extensions Continue to "Fill in the gaps" in existing cities Explore, utilize and test new technologies Boost penetration rates and increase returns via remarketing initiatives & compelling bundles Upsell with value added services Continuously enhance overall product & network service quality Innovative product offerings Standardized service packages to cater to SMES Experiment different product offerings, technologies and services for large Enterprises Further develop internal resource competencies 22 222#24C Maintain expansion momentum through strategic roll-out Link Net Management seeks to maintain the expansion momentum to achieve 2.8m homes passed by end 2021 A Existing cities Potential ■ 1.9m homes passed vs. 7.3m addressable households (a) ■ Further upside in addressable households with economic growth Commentary ■ Focus on premium locations and selected households ◉ Leverage strong execution track record and technical know-how B New cities ■ Java intercity fiber backbone (acquired right of use in 3Q17) provides instant access to ~43 new cities (b) ■ Selective expansion into key • metropolitan cities in Java Island Employ robust and stringent ROIC(c) analysis in evaluation Strategic partnerships Strategic partnership with reputable real estate developers COLIPPO LIPPO PT LIPPO KARAWACI TBK Sinarmas Land ■ Reduction in upfront capex Provides stronger initial HSBB take- up CIKARANG ModernLand a) According to, and based on addressable market of Upper 1, Upper 2 and Middle 1 SEC households as defined by Nielsen (2Q17 definition of SEC classification) - For Greater Jakarta, Greater Bandung, Greater Surabaya (Includes Malang) and Medan. Nielsen reports based on number of people aged 10 and above. Addressable homes or households is derived by assuming each home or household has 4 people each b) Source: 2017 Media Partners Asia c) Return on invested capital ("ROIC") is defined as tax-adjusted operating profit divided by the average sum of total capital. Tax-adjusted operating profit assumes Indonesia's marginal corporate tax rate of 25% (instead of the Company's actual effective tax rate, which was 26.2%, 25.3%, 24.8% and 24.7% for 2014, 2015 and 2016 and the six months ended 30 June 2017, respectively). Total capital is calculated as the sum of net debt and total equity attributable to owners of the parent and non-controlling interests as of the end of the relevant period. Average sum of total capital is the average of total capital as of the start date and end date of each period. Net debt is calculated as total cash and cash equivalents less total debt. ROIC is a non-GAAP financial measure of the Company's performance and should not be considered as an alternative to performance measures derived in accordance with IFAS. Other companies may calculate this non-GAAP measure differently, which limits s usefulness as a comparative measure 23#25Cementing position as a leading HSBB provider of choice Product innovation leadership & synergistic bundles || HD BOLT FastNet HomeGalle Stop service provider Link Net Superior Customer Service customer arket service FIRST SQ Diamond AWARD my Service Quality Award 2017 This Prestigio SQ disg First Media Category: Pey TV iny Satisfaction Fatal Servier Quality S Peption Surry S Carre My FM app Service Excellence Link Net ☑ Optimal subscriber experience with technological advancements State-of-the-art network quality to Upselling initiatives Marketing strategies and product innovations 4K ULTRA HD X SMART LIVING SD HD 1920 x 1080 3840 x 2160 720x576 Ultra High Definition Resolutions TV Anywhere with First Media X Smart Living 24#26Link Net Continued expansion of enterprise business Strategic roadmap for enterprise business Complementary bandwidth utilization from residential broadband Recent initiatives 1 More competitive product offerings ◉ ■ Standardized service packages ■ End to end solution via bundled offering Value added services and managed services Increasing customer stickiness, especially for SMEs with end-to-end solutions Dedicated internal resource allocation to focus solely on marketing to enterprise customers 2 Continued service expansions and improvements ☐ Pre-wiring of office buildings Standardized and automation of work orders to increase efficiency and reduce delivery lead time IDX(a) Allianz Selected enterprise clients BCA Garena Ritz Carlton Grab 3 Sales capability and internal Kompas Gramedia JIS(b) CIMB Niaga WPP(c) NSIAPay Lippo process improvement DBS JW Marriott Orion Cyber Internet a) Indonesia Stock Exchange b) Jakarta International School c) PT Wira Pariwara Pamungkas (Group M Indonesia) ■ Dedicated sales team Automation of network monitoring and trouble ticketing system 25 25#27AE D 100 100 Section 4 Financial overview 0 9204 U NUENDOOME 8 3890 CA 147 2 AD 37 2014 59 BF 04E2 F 7 B1ASE2E15 E 8 00 AE 4D15F B85 IBF COAD 3 2 Link Net#28Our key drivers since 2014 Homes passed / Penetration (a) (k) 27.4% 28.7% (k) (IDRbn) 1,433 +476 homes 1,909 2014 Revenue 1H17 17.7% CAGR(e) 2,136 755 2014 (IDRbn) 57.6% 3,212 2014 LTM 1H17 (f) a) Broadband penetration based on broadband subscribers divided by homes passed RGUS +320 RGUS 1,075 (IDRk/month) ARPU(b) +IDR17k/mth 1H17 EBITDA & margins(c) 18.2% CAGR(e) 1,231 58.2% (IDRbn) 1,869 2014 LTM 1H17 (f) 402 2014 Link Net 419 1H17 EBITDA less cash capex(d) 243 2014 79.2% CAGR(e) 1,045 LTM 1H17 (f) b) ARPU is calculated by dividing revenue generated during a period by the number of total RGUS at the end of such period, then dividing the quotient by the number of months in such period c) EBITDA is a non-GAAP financial measure of the Company's performance and should not be considered as an alternative to performance measures derived in accordance with IFAS. Other companies may calculate this non-GAAP measure differently which limits its usefulness as a comparative measure. EBITDA margin is defined as EBITDA divided by revenue d) EBITDA less cash capital expenditures (comprising purchases of property, plant and equipment for installation and purchase of intangible assets plus IDR140bn representing the one-time amount spent on acquisition of B2JS subsea cables in 2015) does not take into account the Company's mandatory debt service requirements or other non-discretionary expenditures and should not be relied on as a measure of the Company's residual cash flow available for discretionary expenditures. EBITDA less cash capital expenditure is a non-GAAP financial measure of the Company's liquidity, excludes components that are significant in understanding and assessing the Company's cash flows and should not be considered as an alternative to liquidity measures derived in accordance with IFAS. The Company's cash from operating activities was IDR1,182.6bn, IDR1,181.7bn, IDR1,560.7bn, IDR632.4bn and IDR678.7bn for 2014, 2015, 2016 and the six months ended 30 June 2016 and 2017. The Company's cash used in investing activities was IDR1,039.7bn, IDR1,127.6bn, IDR744.6bn, IDR314.3bn and IDR380.6bn for 2014, 2015, 2016 and the six months ended 30 June 2016 and 2017. Other companies may calculate this non-GAAP measure differently which limits its usefulness as a comparative measure e) 2014-LTM 1H17 CAGR calculated using a factor of 2.5 to account for the 2.5 years from 31 December 2014 to 30 June 2017 f) Last Twelve Months (LTM) 1H17 refers to the twelve months period ended 30 June 2017. The unaudited financial data for LTM 1H17 has been derived by adding the Company's financial data for 2016 to the financial data for 1H17 and subtracting the financial data for 1H16. The information is not indicative of the Company's results of operations for the full financial year ending 31 December 2017 or any interim period and may not reflect the Company's actual performance for the full financial year ending 31 December 2017 27#29Continued robust revenue growth across segments Revenue by services offered Link Net ARPU (IDRK/month)(a) 402 Penetration rate (%) (b) 27.4% 415 407 402 419 27.3% 28.5% 28.2% (c) ■ Broadband ■Cable TV ■ Others 2,954 199 2,564 (IDRbn) 165 2,136 1,086 144 940 795 28.7% Continued growth in our subscriber base Double digit growth of subscriber base since 2011 and penetration rate as of 1H17 at record high since re- IPO ARPU expansion with premium product offerings and upselling to higher product package ■ARPU for 1H17 at record high 97% bundling rate (d) Complementary revenues from enterprise business continue to grow 1,651 102 1,393 85 607 519 1,670 1,460 1,197 942 789 2014 2015 2016 1H16 1H17 a) ARPU is calculated by dividing revenue generated during a period by the number of total RGUS at the end of such period, then dividing the quotient by the number of months in such period b) Penetration rate calculated as number of broadband RGUS divided by homes passed c) Others include advertising sales, fees related to payment gateway providers, fees on late payments, installation charges in connection with new service setup, and sales of customer premises equipment d) As at 30 June 2017 28#30Link Net Operational efficiencies continue to drive profitability growth (IDRbn) EBITDA margin (%) 57.6% 1,231 EBITDA & margins(a) Net profit & margins (b) (IDRbn) Net profit margin (%) 56.5% 58.4% 59.8% 59.1% 26.1% 24.9% 27.7% 28.5% 29.7% 819 1,450 1,727 976 834 490 397 640 558 سلار 2014 2015 2016 1H16 1H17 2014 2015 2016 1H16 1H17 a) EBITDA is a non-GAAP financial measure of the Company's performance and should not be considered as an alternative to performance measures derived in accordance with IFAS. Other companies may calculate this non-GAAP measure differently which limits its usefulness as a comparative measure. EBITDA margin is defined as EBITDA divided by revenue b) Net profit margin is defined as net income / total revenue 20 29#31AE D 100 100 0 1276 2 AD 37 2014 59 BF 04E2 F 7 B1ASE2E15 E 8 00 AE 4D15F B85 IBF COAD 3 Section 5 Appendix 8 147 1 AX 3890 2 Link Net#32Link Net industry accolades and awards of the BEST BEST COMPANIES Best of the Best Companies 2017 2nd place From Forbes Indonesia SQ AWARD Service Quality Award 2017 Forg Third in t First Media Bed Service Qentity Sedg у Загаросткам Bourdon Chader Perception Sun 2017 Jark Julianite Service Quality Award 2017 Diamond (First Rank) Pay TV Category by Service Excellence Magazine and Carre-CCSL M WOW BRAND 2015 FIRST MEDA INDONESIA WOW AND 2015- SWA SWA Word of Mouth Marketing Award 2015 Top Telco 2014-2016 Top Fixed Internet Category From Itech Magazine MTOP BRAND AWARD FIRST MEDIA/ FASTRET Link Net Indonesia WOW Brand 2015 & 2017 Silver Champion for Pay TV Category, 2015 & 2017 Gold Champion for Fixed ISP Category, 2015 From Markplus Inc INDONESIA MOST INNOVATIVE BUSINESS AWARD 2017 Indonesia Most Innovative Business Award 2017 Advertising, Printing, and Media Category From Warta Ekonomi SWA NET PROMOTER LEADER 2016 Pay TV SWA NET PROMOTER LEADER 2016 Broadband/Fixed ISP Customer Loyalty Award Net Promoter Leader Award 2016 Pay TV & Broadband/Fixed ISP category SWA magazine, 2011-2016 NET LEADER fontier TEMPO TO Brand Finance plc Brand Rating 2015 Top Brand Award 2012-2014 PEFINDO25 Index (01/08/2015 to 31/01/2016) SWA Net Promoter Leader Award 2011-2014 TEMPO PT Link Not fontier Corporate Image Award 2012-2014 INDONESIA 2015 EXCELLENCE AWARDS 2015 Frost & Sullivan Indonesia Excellent Awards 31