Investor Presentaiton
C
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
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