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Contact:Equity & Index Valuation DivisionPhone: (6221) 7278 [email protected]

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Catur Sentosa Adiprana, Tbk

Secondary Report

Equity Valuation

March 20, 2014

Target Price

Low High396 464

Distribution and Modern Retail

Stock Performance

Source: Bloomberg, PEFINDO Equity & Index ValuationDivision

Stock Information IDRTicker code CSAPMarket price as of March 19, 2014 226Market price 52 week high 245Market price 52 week low 160Market cap 52 week high (bn) 709Market cap 52 week low (bn) 463

Market Value Added & Market Risk

Source:PT Catur Sentosa Adiprana Tbk, PEFINDO Equity &Index Valuation Division

Stock Valuation Last CurrentHigh 485 464Low 380 396

Shareholders* (%)PT Buanatata Adisentosa 28.51PT Ekasentosa Jayasukses 15.76Others and Public (less than 5%) 55.73

*as of September 30, 2013

Short-Term Challenges, Bright Prospects Ahead

PT Catur Sentosa Adiprana Tbk (CSAP) was formally established in 1983but it traces its history to a small paint shop opened at Jalan Gajah Mada,Jakarta, in 1966. Since 1983, CSAP has been focused on distributingbuilding materials and chemicals. During 1990s, the Company established11 branches selling building materials and chemicals. In 1997, CSAP wentinto the retail business by introducing a modern retail store for buildingmaterials & home improvement called Mitra10. It also opened a modernretail showroom for home furnishings in 2009 called Atria. In 2010, CSAPexpanded its distribution business to include consumer goods. Startingwith P&G products, the business has growing rapidly to involve otherreputable principals. The Company was listed on the Indonesia StockExchange (IDX) in December 2007. CSAP now is one of the leadingcompanies in distribution and logistics as well as modern retail inIndonesia. Last year, CSAP received a prestigious recognition from theIndonesian World Record Museum as the Building Material DistributionCompany with the Largest Distribution Network. Then, P&G Indonesiaawarded CSAP as a Sales Champion and the Best Distributor. It also wasgiven The Top Brand award in the Building Materials Retail category forthe third time for its Mitra10 modern retail. Else, Mitra10 also receivedCorporate Image Award 2013 for Building Material Chainstore category,and the latest is Superbrands Award 2014 for Retail category (Mitra10).

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Target Price AdjustmentWe have made several adjustments to our previous forecast and adjusted our targetprice to IDR396 IDR464 per share, based on the following considerations:

The property industry is estimated to face tougher challenges this year, leadingto a lower growth expectation of 10%. However, this is temporary and theindustry is expected to rebo und, especially considering that Indonesias housingbacklog is estimated to reach 15 million units this year.

In line with the property sectors outlook, we estimate that demand for paintand ceramic tiles will weaken. Even so, the potential for demand to growremains big as the economy will continue to grow strongly.

Election activities are expected to boost consumer good sales. Echoing a recentBank Indonesia survey, household consumption remained strong in 4Q2013,with the retail sales index up 27% from the same period the previous year,despite higher inflation. Further, national modern retail sales are expected torise by at least 10% this year to more than IDR163 trillion.

Despite many economic challenges in 2013, CSAPs revenue growth (28% in9M2013) exceeded our estimate. All segments contributed to the high growth.The distribution segment grew 25% while modern retail was up 36%.Therefore, we revised our revenue target upward in view of this performance

and the Companys ability to maximiz e each business segment s potentialdespite an unfavorable environment. We are optimistic that CSAP would be ableto book revenue of IDR7.8 trillion in 2014.

Even if CSAPs profitability is squeezed, we estimate its EBITDA will remainstrong at more than IDR200 billion, representing an EBITDA coverage ratio of2.6x in 2013. We assumed that CSAP will maintain its gearing ratio at thecurrent level but we expect a higher coverage ratio in accordance with betterprofitability.

Risk-free rate, equity premium, and beta assumption are 8.1%, 3.8% and1.0x, respectively.

Business ProspectsThe prospects for Indonesias economy remain bright on account of the Countryslarge and predominantly young population with a fast-growing middle class. Middleclass households as a percentage of the total population increased from 18% in 2008to 26% in 2012, and are estimated to increase by 10% annually on average to 2016.Indonesias consumer spending is also projected to grow at a faster 12% CAGR from2012-2015 after growing 11% CAGR during 2009-2012. At the same time, thegovernment is continuing to accelerate important infrastructure developments likeroads, airports, ports, railways, power plants, and others. Thus, despite short-termchallenges such as higher inflation and interest rates, we expect economic growth toremain strong , and with it CSAPs growth. The Companys business has seen favorabledevelopments, and we are optimistic for its outlook ahead.

Table 1: Performance Summary2011 2012 2013P 2014P 2015P

Sales [IDR bn] 4,166 5,021 6,411 7,805 9,270

Pre-tax profit [IDR bn] 99 86 100 132 167

Net profit [IDR bn] 67 57 68 89 113

EPS [IDR] 23 20 23 31 39

EPS growth [%] 103.0 (14.4) 18.0 32.1 26.0

P/E [x] 9.9 11.6 7.7 7.3* 5.8*

P/BV [x] 1.1 1.0 0.7 0.8* 0.7*Source: PT Catur Sentosa Adiprana Tbk, PEFINDO Equity & Index Valuation Division Estimates*Based on CSAP s share price as of March 19, 2014, IDR 226/share

INVESTMENT PARAMETER

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Indonesias Economy will Remain StrongAfter the unfavorable circumstances in the previous year, we are positive thatpressures driving inflation and the rupiah depreciation are going to ease. We alsobelieve that the BI rate will unlikely rise by more than 25bps, but we prefer the rate tostay at the current level. We expect economic growth to remain strong, despite short-term challenges. Indonesias economic prospects remain bright on account of theCountrys large and relatively young population (about 70% below age 45), largeworking population (>50% between age 20-55), and fast-growing middle classpopulation. Based on Nielsen research, Indonesias middle class population isestimated to grow by 174% between 2012-2020, and will be the largest contributor tothe South East Asia region. Indonesias consumer spending will also continue toincrease; it grew 11% CAGR from 2009-2012, and is expected to grow at a faster rateof 12% CAGR for 2012-2015. At the same time, the government is continue toaccelerate important infrastructure developments like roads, airports, ports, railways,power plants, and others.

Figure 1: Indonesias Consumer Spending

Source: Frost & Sullivan, IFT, PEFINDO Equity & Index Valuation Division

Expanding its Businesses

CSAP completed its expansion program with the opening of two distribution branchesin Lombok (West Nusa Tenggara) and Bengkulu (Sumatra). For its modern retailbusiness, the Company opened three Atria showrooms in Puri Indah (West Jakarta),Balekota Mall (Tangerang), and Depok Mall (Depok). As part of its strategy, CSAP willcontinue to open new branches/areas for its distribution segment and newstores/showrooms for its modern retail segment along with improvements to itsservice quality. Looking at this year, CSAP targets to open two building materialsdistribution branches and one consumer goods distribution area, as well as threeMitra10 stores and one Atria showroom for the modern retail segment.

Figure 2: Number of DistributionBranches/Areas

Figure 3: Number of Modern RetailStores/Showrooms

Source: PT Catur Sentosa Adiprana Tbk, PEFINDO Equity & IndexValuation Division.

Source: PT Catur Sentosa Adiprana Tbk, PEFINDO Equity & IndexValuation Division.

Improving its Principals and Product Portfolio

Principals are one of the most important parts of CSAPs business. Therefore, theCompany is going to continue efforts to improve its principals and product portfolio. In2013, CSAP added a significant number of principals to its portfolio, both multinationaland national. They include Trilliun Depo Internusa, Wuxi Haopu Titanium Industry,Deqing Yinlong Industrial, SCG Performance Chemicals, Cakrawala Megah Indah

BUSINESS INFORMATION

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(Sinar Mas Group), Focus Distribusi Nusantara, Multi Indocitra, Frisian Flag, DanoneDairy Indonesia, Jamu Air Mancur, Maya Muncar, Electrolux Indonesia, Viva TeknikMandiri, etc. For 2014, CSAP will continue with the strategy of improving its portfolioof principals to strengthen its competitiveness. Some of the principals targeted areWavin Group, Duracell, Nutrifood Indonesia, Samsung Electronics Indonesia, DaikinAirconditioning Indonesia, Ningbo JJ Tools, Chongqing Fancy Sanding Machinery, etc.

Figure 4: Principals and Their Length of Relationship

Source: PT Catur Sentosa Adiprana Tbk, PEFINDO Equity & Index Valuation Division

Recognition for AchievementsFor its remarkable accomplishments, CSAP received numerous prestigious awardsover the past year. These include:

Building Material Distribution Company with the Largest Distribution Networkfrom the Indonesian World Record Museum.

Top Brand 2013 in Building Materials Retail category for the third time(Mitra10).

Sales Champion and the Best Distributor from P&G Indonesia. Corporate Image Award 2013 for Building Material Chainstore category

(Mitra10). Superbrands Award 2014 for Retail category (Mitra10).

Property Industry: To Slow Down TemporarilyThe property industry is expected to face tougher challenges this year, leading todeclining growth expectations of only 10% compared to 15% last year. There aresome factors that we consider will significantly impact the industry:

High BI rate of 7.5% will lead to higher mortgage rates. Loan-to-value regulation could slow down loan disbursement. Developers started several projects in 2012 and majority of these will be

completed in 2014. During elections year, political uncertainty encourages investors to wait and

see. Floods and volcanic eruption could delay project development and decrease

consumer purchasing power.However, the slowdown will only be temporary, and the property industry is expectedto rebound after 2014 . Moreover, Indonesias housing backlog is estimated to reach15 million units this year and housing needs increase by 800,000 units per year.

Table 2: Construction Value of Property Projects (in IDR trillion)No. Sector 2013 2014P Growth (%)1) Residential 65.7 77.2 17.42) Industrial Estate 75.8 56.7 -25.33) Hotel 25.9 43.9 69.54) Office 34.8 41.9 20.55) Retail 21.1 22.8 8.16) Hospital 4.8 6.6 36.47) Education 6.9 5.4 -21.88) Recreation 2.6 3.3 27.1

9) Community 1.7 1.9 11.6Total 239.3 259.6 8.5Source: BCI Asia, Investor Daily, PEFINDO Equity & Index Valuation Division

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Promising Ceramic Tile and Paint Prospects, Short-Term DeclineWith abundant raw material resources, Indonesia is one of major world ceramic tileproducers (sixth of top 30 producers in 2012) and one of the top 10 consumers since2010. Nevertheless, ceramic tile consumption per capita in Indonesia remains lowcompared to Malaysia, Philippines, and Thailand. Therefore, there is a large potentialfor ceramic tile consumption to grow. The ceramic tile market is estimated to grow 7%per annum from 2012-2015, and the market is projected to reach 300 million sqm in2016. Meanwhile, paint consumption has grown by around 10% annually over the lastthree years in Indonesia, and paint sales is estimated to have reached almost IDR14trillion in 2013. Paint sales are expected to hit IDR15 trillion this year, particularly dueto demand from oil refineries. Accordingly, though long-term prospects are promising,we estimate demand for paint and ceramic tiles this year to weaken in line with theproperty sectors outlook .

Figure 5: Ceramic Tile Consumption perCapita (2011) Figure 6: Paint Market in Indonesia

Source: World Bank, Ceramic World Review, Standard Chartered,PEFINDO Equity & Index Valuation Division

Source: Mars Indonesia, PEFINDO Equity & Index Valuation Division

Election Activities to Boost Consumer Goods ConsumptionIn the last five years, consumer goods consumption grew strongly by more than 10%annually, boosted by the growth of modern retail outlets and traditional markets. Thisyear, election activities are expected to boost consumer good sales. Echoing a recentBank Indonesia survey, households consumption remained strong in 4Q2013, with theretail sales index up 27% yoy, despite higher inflation due to fuel price and wagehikes.

Retail Industry to Grow SteadilyThe market share of modern trade outlets increased from 26% in 2003 to 45% in2012 (Nielsen), indicating a stronger preference for shopping convenience. Reflectingon the data, we see good prospects for the retail industry despite the currentoperating cost challenges due to factors such as higher wages, fuel prices, electricitytariff, and rent expenses. The expansion of the middle class has boosted urbanizationand led to higher living standards, creating more room for retailers to expand. Middleclass households as a percentage of the total population increased from 18% in 2008to 26% in 2012, and are estimated to increase by 10% annually on average to 2016(Euromonitor). Moreover, national modern retail sales are expected to grow by atleast by 10% this year to more than IDR163 trillion.

Figure 7: National Modern Retail SalesGrowth

Source: Indonesian Retail Merchants Association, Mandiri Updates, PEFINDOEquity & Index Valuation Division

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Revenue: Surprising AchievementCSAP recorded a 28% revenue growth in 9M2013. This not only exceeded ourestimate, but was also surprising considering the many economic challenges in 2013.Both segments distribution and modern retail recorded a high growth of 25% and36%, respectively. Therefore, we revised our revenue target upward for 2013 toIDR6.4 trillion from IDR6.1 trillion. Given the Companys incredible performance andits ability to maximize the potential of each business segment despite an unfavorableenvironment, in addition to the Companys expansion plans, we are optimist ic thatCSAP can book revenue of IDR7.8 trillion in 2014.

Figure 8: Total Revenue

Source: PT Catur Sentosa Adiprana Tbk, PEFINDO Equity & Index ValuationDivision Estimates

Strengthening Modern Retail SegmentThe modern retail segment is showing an increasing trend in its contribution to totalrevenue. It contributed 26% in 9M2013 compared to 21% in 2010. CSAP prefersfurther strengthening the modern retail segment as it has a higher margin of 19%-20% versus 10%-11% in the distribution segment. In addition to developing newstores and showrooms, CSAP will reinforce internal business capacities in the segment

through the following: Continue to diversify and expand the range of good quality products. Improve display arrangement and pricing strategy. Collaborate with its principals to conduct marketing programs to attract more

customers. Improve employee product knowledge and skills to increase service level

quality. Remodel stores and showrooms to enhance shopping convenience.

Figure 9: Modern Retail Revenue


FINANCE

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Stable Gross Margin, Pressure from Operating ExpensesWith a relatively stable gross margin and in line with its higher revenue, gross profitincreased 29% in 9M2013. But as a result of higher wages, fuel prices, electricity, andinterest rates, CSAP suffered a surge in operating expenses (41%) and interestexpense (23%). Salary and allowances jumped more than 40% while transportationcosts increased more than 50%, leading to a 15% drop in net profit. Despite thesecost challenges, we re main optimistic about CSAPs profitability in the future. TheCompany can renegotiate its contracts with its principals since CSAP has a goodbargaining position. Further, CSAP is committed to increasing the portion of importedproducts in its portfolio from the current 20%, as well as maximizing its workingcapital and investments.

Figure 10: Gross Profit and Gross Margin Figure 11: Net Profit and Net Margin

Source: PT Catur Sentosa Adiprana Tbk, PEFINDO Equity & IndexValuation Division Estimates


EBITDA to Stay StrongCSAPs interest bearing debt grew by 23% in 9M2013 from its 2012 position,particularly with regard to short-term debt, as it had higher trade receivables andinventories. However, the gearing ratio as represented by net-debt to equity ratio thatremained low at only 1.3x, slightly up from 1.1x in 2012. Altough profitability issqueezed, we estimate its EBITDA will remain strong at more than IDR200 billion,representing an EBITDA coverage ratio of 2.6x in 2013. We assume that CSAP willmaintain its gearing ratio at around the current level but we expect a higher coverageratio in accordance with better profitability.

Figure 12: Gearing Figure 13: EBITDA and Coverage Ratio



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Table 3: CSAP and Its Peers Performance Summary as of 9M13CSAP TGKA ERAA KOIN EPMT

Net sales [IDR bn] 4,631 5,972 9,559 813 11,157

Gross profit [IDR bn] 600 619 891 148 1,230Pre-tax profit [IDR bn] 53 154 329 29 393Net profit [IDR bn] 40 119 238 21 290Total asset [IDR bn] 2,914 2,291 5,100 288 5,408Total liabilities [IDR bn] 2,222 1,656 2,458 216 2,544Total equity [IDR bn] 693 635 2,643 72 2,864

Growth [YoY]Revenue [%] 27.8 8.6 (0.9) 31.9 16.4Gross profit [%] 29.1 17.6 4.0 18.7 26.3Pre-tax profit [%] (25.7) 40.4 (25.6) 78.8 16.2Net profit [%] (14.9) 50.2 (27.7) 30.9 14.6

Profitability

Gross margin [%] 13.0 10.4 9.3 18.2 11.0Pre-tax margin [%] 1.1 2.6 3.4 3.6 3.5Net margin [%] 0.9 2.0 2.5 2.6 2.6ROA [%]* 1.8 6.9 6.2 9.9 7.2ROE [%]* 7.7 25.1 12.0 39.2 13.5

LeverageLiabilities to assets [x] 0.8 0.7 0.5 0.7 0.5Liabilities to equity [x] 3.2 2.6 0.9 3.0 0.9

Source: Bloomberg, PT Catur Sentosa Adiprana Tbk, PEFINDO Equity & Index Valuation Division* annualized

INDUSTRY COMPARISON

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VALUATION

Methodology

We applied the Discounted Cash Flow (DCF) method as the main valuationapproach considering that income growth is the value driver in CSAP instead ofasset growth.

Furthermore, we applied the Guideline Company Method (GCM) as a comparisonmethod.

This valuation is based 100% on share price as of March 19 , 2014, using CSAPsfinancial report as of September 30, 2013, for our fundamental analysis

Value Estimation

We used a Cost of Capital of 9.5% and Cost of Equity of 11.8% based on thefollowing assumptions:

Table 4: AssumptionRisk free rate [%]* 8.1

Risk premium [%]* 3.8

Beta [x]** 1.0

Cost of Equity [%] 11.8

Marginal Tax Rate [%] 25.0

WACC [%] 9.5Source: Bloomberg, PEFINDO Equity & Index Valuation Division Estimates* as of March 19, 2014** PEFINDO Beta as of March 13, 2014

Target price for 12 months based on the valuation as of March 19, 2014, is as

follows: Using the DCF method with a discount rate assumption of 9.5% is

IDR369 IDR440 per share. Using the GCM method (PBV 1.9x and P/E 14.9x) is IDR459 IDR520 per

share.

In order to obtain a value that represents both value indications, we haveweighted both DCF and GCM methods by 70%:30%.

Based on the above calculation, the target price of CSAP for 12 months isIDR396 IDR464 per share.

Table 5: Summary of DCF Method Valuation Conservative Moderate Optimistic

PV of Free Cash Flows [IDR, bn] 80 85 89

PV Terminal Value [IDR, bn] 1,857 1,955 2,053

Non-Operating Assets [IDR, bn] 72 72 72

Debt [IDR, bn] (940) (940) (940)

Number of Share, [mn shares] 2,895 2,895 2,895

Fair Value per Share, [IDR] 369 405 440Source: PEFINDO Equity & Index Valuation Division Estimates

TARGET PRICE

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Table 6: GCM CSAP TGKA ERAA GOLD Avg.

P/E [x] 12.9 13.6 13.0 20.0 14.9

P/BV [x] 1.1 3.3 1.7 1.5 1.9Source: Bloomberg, PEFINDO Equity & Index Valuation Division

Table 7: Summary of GCM Method Valuation Multiple [x] Est. EPS [IDR] Est. BV/share

[IDR]Value [IDR]

P/E 14.9 31 - 459

P/BV 1.9 - 277 520Source: Bloomberg, PEFINDO Equity & Index Valuation Division Estimates

Table 8: Fair Value ReconciliationFair Value per Share [IDR]

DCF GCM Average

Upper limit 440 520 464

Bottom limit 369 459 396

Weight 70% 30%Source: PEFINDO Equity & Index Valuation Division EstimatesNote: average price is rounded according to the fractional price prevailing on the IDX

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Table 9: Consolidated Statement of ComprehensiveIncome

IDR bn 2011 2012 2013P 2014P 2015P

Revenue 4,166 5,021 6,411 7,805 9,270

COGS (3,636) (4,389) (5,580) (6,789) (8,057)

Gross profit 530 632 831 1,017 1,213Operating expenses (385) (482) (654) (796) (945)

EBITDA 182 193 240 294 351

Pre-tax profit 99 86 100 132 167

Tax (24) (23) (25) (33) (42)

Net profit 67 57 68 89 113


Table 10: Consolidated Statement of Financial PositionIDR bn 2011 2012 2013P 2014P 2015P

Assets

Cash and cashequivalents 31 66 75 84 90

Short-term investments 9 12 14 17 19

Trade receivables 566 691 832 992 1,152

Inventories 817 849 1,124 1,352 1,586

Other current assets 84 139 200 216 251

Total current assets 1,507 1,757 2,246 2,661 3,098

Property and equipment 415 663 729 837 941

Long-term prepaid rent 27 27 36 41 47

Other non-currentassets 60 64 85 96 108

Total assets 2,009 2,512 3,096 3,635 4,195

Liabilities and equity

Short-term debts 463 580 803 935 1,046

Trade payables 761 955 1,179 1,440 1,715

Other current liabilities 57 59 91 111 131

Total currentliabilities 1,281 1,594 2,074 2,486 2,892

Long-term debts 67 187 198 214 232

Other non-currentliabilities 66 83 111 134 160

Total liabilities 1,415 1,864 2,383 2,834 3,284

Total equity 595 648 713 801 911


Figure 14: P/E and P/BV


Figure 15: ROA, ROE and Total Assets Turnover


Table 11: Key Ratios

2011 2012 2013P 2014P 2015PGrowth [%]

Sales 24.5 20.5 27.7 21.8 18.8

Pre-tax profit 102.3 (13.2) 16.5 32.1 26.0

EBITDA 49.6 6.3 24.2 22.3 19.7

Net profit 103.0 (14.4) 18.0 32.1 26.0

Profitability [%]

Gross margin 12.7 12.6 13.0 13.0 13.1

Pre-tax margin 2.4 1.7 1.6 1.7 1.8

EBITDA margin 4.4 3.8 3.7 3.8 3.8

Net margin 1.6 1.1 1.1 1.1 1.2

ROA 3.3 2.3 2.2 2.5 2.7

ROE 11.3 8.8 9.5 11.2 12.4

Liquidity [x]

Current Ratio 1.2 1.1 1.1 1.1 1.1

Quick Ratio 0.5 0.5 0.5 0.5 0.5

Solvability [x]

Liabilities to equity 2.4 2.9 3.3 3.5 3.6

Liabilities to asset 0.7 0.7 0.8 0.8 0.8

Source: PT Catur Sentosa Adiprana Tbk, PEFINDO Equity & Index Valuation DivisionEstimates

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DISCLAIMER

This report was prepared based on trusted and reliable sources. Nevertheless, we do not guarantee itscompleteness, accuracy and adequacy. Therefore, we are not responsible for any investment decisions madebased on this report. All assumptions, opinions and predictions were solely our internal judgments as of thereporting date, and those judgments are subject to change without further notice.

We are not responsible for any mistakes or negligence that occur by using this report. Recent performancecannot always be used as a reference for future outcome. This report does not offer a recommendation topurchase or hold particular shares. This report might not be suitable for some investors. All opinions in thisreport have been presented fairly as of the issuing date with good intentions; however, they could change atany time without further notice. The price, value or income of each share of the Company stated in this reportmight be lower than investor expectations, and investors may obtain returns lower than the invested amount.Investment is defined as the probable income that will be received in the future; nonetheless such returnsmay fluctuate. As for companies whose shares are denominated in a currency other than Rupiah, foreignexchange fluctuation may reduce their share value, price or the returns for investors. This report does notcontain any information for tax considerations in investment decision-making.

The share price target in this report is a fundamental value, not a fair market value or a transaction pricereference required by regulations.

The share price target issued by the PEFINDO Equity & Index Valuation Division is not a recommendation tobuy, sell or hold particular shares. It should not be considered as investment advice from the PEFINDO Equity& Index Valuation Division and its scope of service to some parties, including listed companies, financialadvisors, brokers, investment banks, financial institutions and intermediaries, does not correlate withreceiving rewards or any other benefits from such parties.

This report is not intended for any particular investor and cannot be used as part of an objective investmentanalysis of particular shares, an investment recommendation, or an investment strategy. We stronglyrecommend investors to consider the suitability of the situation and conditions before making a decision inrelation with the figures in this report. If necessary, consult with your financial advisor.

PEFINDO keeps the activities of the Equity Valuation Division separate from its Ratings Division to preservethe independence and objectivity of its analytical processes and products. PEFINDO has established policies

and procedures to maintain the confidentiality of non-public information received in connection with eachanalytical process. The entire process, methodology and the database used in the preparation of the ReferenceShare Price Target Report as a whole are different from the processes, methodologies and databases used byPEFINDO in issuing ratings.

This report was prepared and composed by the PEFINDO Equity & Index Valuation Division with the objectiveof enhancing the transparency of share prices of listed companies in the Indonesia Stock Exchange (IDX). Thisreport is also free of influence from any other party, including pressure or force either from IDX or the listedcompany reviewed. PEFINDO Equity & Index Valuation Division earns a reward amounting to IDR20 millionfrom IDX and the reviewed company for issuing this report twice a year. For further information, please visitour website at http://www.pefindo.com

This report was prepared and composed by the PEFINDO Equity & Index Valuation Division. In Indonesia, thisreport is published in our website and in the IDX website.

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