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PT SARATOGA INVESTAMA SEDAYA TBK 9M 2015 Results November 2015

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  • 1

    PT SARATOGA INVESTAMA SEDAYA TBK

    9M 2015 Results

    November 2015

  • 2

    Disclaimer

    “These materials have been prepared by PT Saratoga Investama Sedaya, Tbk (the “Company”) from various internal sources and have not been independently verified. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice.

    These materials contain embedded statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words whether or not explicitly stated such as “expects,” “plan,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances.

    No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. The Company or any of its affiliates, advisers or representatives accepts no liability whatsoever for any loss howsoever with respect to any use or reliance upon any of the information presented or contained in these materials. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed.”

  • 3

    CORPORATE INFORMATION

  • 4

    Saratoga, a Leading Active Investment Company

    Infrastructure Consumer

    Power Roads Telecomm-unications

    Automotive Property

    PT Unitras Pertama Edwin Soeryadjaya Sandiaga S. Uno Public

    29.2% 31.5% 29.2% 10.2%

    Natural Resources

    Agriculture Oil & Gas Metals & Mining

    Leading active investment company in Indonesia with an estimated NAV of IDR 15tn

    Listed on the IDX in 2013 among the top 100 largest market capitalization stocks in IDX

    Invested in early-stage, growth-stage, and special situation opportunities and actively engaged with investee

    companies’ management teams in unlocking value of investments

    Focus on key sectors of the Indonesian economy: Consumer, Infrastructure and Natural Resources

    Lifestyle

    22 Operating Companies: 11 Publicly Listed & 11 Non-Listed >40,000 Employees

    Generating >USD 6 B Revenue

    Data presented are as of 30 Sep 2015

    IDR/USD as of 30 Sep 2015 = 14,657

    Source: Company information

  • 5

    Indonesia’s Macro Economic Situation Presents Investment

    Opportunities

    5.61% 5.59% 5.50% 5.61% 5.14% 5.03% 4.92% 5.01% 4.71% 4.67%

    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

    2013 2014 2015

    Quarterly GDP Growth (YoY)

    12,189 12,440 14,657

    -

    5,000

    10,000

    15,000

    20,000

    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

    2013 2014 2015

    USD/IDR

    Source: BPS Source: Bank Indonesia

    93 99.8 100.5 105.3 106.6

    116.2 119.9 120.4 124.6 135.1 140.3

    0

    50

    100

    150

    QI QII QIII QIV QI QII QIII QIV QI QII Q3

    2013 2014 2015

    Investment Realization

    DDI FDI Total

    Source: BKPM

    23% 25% 23% 22%

    12%

    5%

    2% 2% 2%

    2%

    3%

    0.0%

    0.5%

    1.0%

    1.5%

    2.0%

    2.5%

    3.0%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    2010 2011 2012 2013 2014 YTD Aug2015

    Commercial Banking Loan Growth & NPL

    Loan Growth NPL Rate

    Source: Bank Indonesia, BMI

    Current cyclical downturn…

    … indicates a good time and opportunity to invest in Indonesia

  • 6

    Diversified Portfolio in Three Key Sectors

    Early-stage companies provide large upside potential

    Ability to acquire larger stakes allows SIS to exert significant influence, develop company strategy and products and generate strong return

    Growth companies generate sustainable and healthy cash flows for SIS’ portfolio

    Provides great upside potential when growth companies enter into mature phases

    Blue-chip Investee Companies are established industry leaders with growth and capital appreciation opportunities

    SIS to remain a long-term shareholder in these businesses

    Nat

    ura

    l Re

    sou

    rce

    s In

    fras

    tru

    ctu

    re

    Co

    nsu

    me

    r

    SOTP 2% 32% 66%

    % Sum of

    the Parts

    (SOTP)

    35%

    58%

    7%

    Agra Energi Indonesia

    Listed Blue Chip Companies Growth Companies Early Stage Companies

    Data presented are as of 30 Sep 2015

    IDR/USD as of 30 Sep 2015 = 14,657

    Source: Company information

  • 7

    Disciplined Execution in Investment Selection

    139 • Opportunities

    (up from 105 in previous year)

    72 • Preliminary Assessments

    15 • Desktop Diligence

    5 • Term Sheet

    2 • New Investments: Merdeka Copper Gold

    & Gilang Agung Persada

    We follow a disciplined approach in selecting new investments

    New Investments: IDR 336 bio Follow-On Investments: IDR 247 bio Divestments: IDR 51 bio Investments in 2014: IDR 532 bio

    New Investments in 9M 2015

    Data presented are as of 31 Dec 2014

    Source: Company information

    Agra Energi Indonesia: • Through PT Surya Nuansa Ceria (PT SNC), Saratoga signed a

    working agreement with PT Puncak Jaya Berlima to establish PT Agra Energi Indonesia to explore oil and gas.

    • Saratoga is committed to invest up to USD 7.5 million, which represents 30% shares in the company.

    Paiton Energy: • Signed a CSPA to acquire 16.67% shares of PT Batu Hitam

    Perkasa, which holds 5% interest in PT Paiton Energy, an electricity-generating company, which has secured a license to construct, own and operate a coal steam generator located at the Paiton Power Plant complex in Probolinggo Regency, East Java.

    • Paiton operates two electricity generators: unit 7/8 and unit 3 for a total generating capacity of 2,035MW.

    In 2014, we managed to have:

  • 8

    Investing and Growing through the Cycle

    Saratoga Listed on the IDX

    June 2013

    MPM Auto appointed as

    National Dealer by PT Nissan

    Motor Indonesia

    TWU increased

    capacity to 16k bopd

    2014

    Medco Power’s Sarulla Geothermal

    Project achieved USD 1.17B financial

    closing

    Acquired 4.17% in

    Gilang Agung Persada

    Acquired 80% in Trimitra Karya Jaya,

    one of the shareholders in

    Merdeka Copper Gold

    Listed Merdeka

    Copper Gold on the IDX

    2015

    Established PT Agra Energi

    Indonesia and controls 30% of

    the company

    Lintas Marga Sedaya commercially opened

    the 116.75KM toll-road in June 2015

    Sumatra Copper and Gold achieved its first gold pour in October

    2015

    Acquired 16.67% shares of PT Batu

    Hitam Perkasa, holder of 5% interest in PT Paiton Energy

  • 9

    PORTFOLIO HIGHLIGHTS

  • 10

    Natural Resources

    Coal

    PT Adaro Energy Tbk. Investment Date: 2007 Invested: IDR 978B Value of stake: IDR 6.5T Effective interest: 16.4% One of the largest thermal coal producers in Indonesia

    with over 20 years experience. Integrated business from Pit to Port and to Power Estimated JORC Reserves of 1.1Bt (2014) and Resources of

    12.8 Bt (2013) Location: South, East, Central Kalimantan & South Sumatra

    Investment Thesis

    • Proven and sustainable track record of production growth Consistent production volume with 2010-2014 CAGR of 7.4% Expected to produce 52-54 Mt in 2015

    • Diversified customer base with long-term contracts Supplies to more than 12 countries, each with geographical concentration not more than 22% Average length of coal supply agreement is 5 years

    • Cost Discipline while Maintaining Long Term Plan Vertically integrated business model enables cost control Maintain as the lowest cost coal producer at USD 31-33/t

    • Investing in the Three Engines of Growth Expect growing contribution from the non coal mining Power projects provide solid IRR and low cost LT financing

    Strategy Adaro’s strategy is to create sustainable value:

    • Organic growth from current reserve base o Focus on long-term, reliable production

    • Improve efficiency of coal supply chain and focus on cost control

    • Further develop mining services and logistics unit

    • Deepen integration by moving downstream into power generation o Looking to participate in power projects in South and East

    Kalimantan, South Sumatra and Java.

    Key Operational & Financial Metric 2013 2014 9M 2015

    Production (Mt) 52.3 56.2 39.8

    Sales (Mt) 53.5 57.0 41.2

    OB Removal (Mbcm) 294.9 319.1 213.1

    Net Revenue (USD M) 3,285 3,325 2,112

    Net Income (USD M) 229 184 181

    Operational EBITDA (USD M) 860 888 568

    Cash (USD M) 681 745 785

    Coal Cash Cost (USD/ton) 34.8 33.0 28.6

    Net Debt to Equity (x) 0.47 0.35 0.26

    Data presented are as of 30 Sep 2015

    Source: PT Adaro Energy Tbk.’s public disclosures

  • 11

    Infrastructure

    Power

    PT Medco Power Indonesia

    Investment Date: 2011 Invested: IDR 244B Value of stake: IDR 240B (book value) Effective interest: 12.3% A leading IPP focuses on clean and renewable energy: Gas, Hydro,

    and Geothermal. Operates 6 gas-fired power plants with 220MW generating

    capacity located in Batam and S. Sumatera Builds 3 x 110MW Sarulla project, world’s largest single-contract

    geothermal power project to date Provides EPC and OM, e.g. Tanjung Jati B Power Plant owned by

    the Electricity State Company (PLN)

    Investment Thesis

    • Growing Industry with Stable Cash Flow Long term (~15-25 years) Power Purchase Agreement with PLN generating healthy and stable cash flows

    • Focus on Clean and Renewable Energy Leverage on Indonesia position as the largest natural gas producer in the Asia Pacific region and home to 40% of the world’s geothermal resources. Participating in the shift towards clean and renewable energy as the world put more emphasis on reducing harmful emissions.

    • Sizeable Committed Projects Expand on existing operating assets, gas pipeline development, and acquisition of power plants.

    • Strong Demand Indonesian government plans to build 35,000MW power generation in the country over the next five years.

    Key Operational & Financial Metric 2013 2014 9M 2015

    Operating Capacity (MW) 192 220 220

    Revenue (IDR B) 968 1,856 2,252

    Gross Profit 314 344 415

    Gross Profit Margin 32% 19% 18%

    Recent Events

    • Divested half of its stake in the Sarulla geothermal project to a Japanese oil giant, INPEX, thereby reducing MPI’s effective stake in the Sarulla project from 37.25% to 19%.

    • After achieving financial close in mid-2014, the site preparation work for Sarulla’s 1st unit had been completed in Apr 2015. The 1st power generating unit (110 MW) is expected to start commercial operations at the end of 2016.

    • PT Mitra Energi Batam’s combined cycle project started operations late 2014. Gross profit increased since a few major overhauls were conducted in 2014.

    Data presented are as of 30 Sep 2015

    Source: Company Information

  • 12

    Natural Resources

    Gold & Copper

    PT Merdeka Copper Gold Tbk

    Investment Date: 2014 Invested: IDR 580B Value of stake: IDR 1.3T Effective interest: 18.73% A holding company with operating subsidiaries that are engaged in

    the mining business of gold, silver, copper and other related minerals.

    Listed on the IDX in 2015 and has a market capitalization of IDR 7T MCG operates through the subsidiary PT BSI and an Exploration

    IUP through PT DSI of 4,998 ha and 6,623 ha respectively, both located in Banyuwangi, East Java

    The Tujuh Bukit Project, MCG’s main project, is expected to start commercial production in 2016

    Sumatra Copper and Gold

    Investment Date: 2012 Invested: IDR 199.8B Value of stake: IDR 90B Effective interest: 27.4% An emerging gold and silver producer with 100% ownership of

    exploration rights in 7 locations in Sumatera, Indonesia. Project portfolio encompasses greenfields exploration projects, to

    brownfields near-production opportunities. Established in the United Kingdom in 2006 and listed on the

    Australian Securities Exchange in 2009 under the code SUM.

    Investment Thesis

    • Large ore reserves and mineral resources • Low cost structure

    Capital need for heap leach installation is lower than industry similar-sized mines that uses Carbon-In-Leach, due to low water and energy needs, and efficient low cost of waste processing

    Gold (Oz) Silver (Oz) Copper (lbs)

    Oxide Layer’s Reserves 0.9 M 21.6 M

    Oxide Layer’s Resources 2.1 M 75.1 M

    Porphyry Layer’s Resources 28.1 M - 19 B

    Recent Events

    • Sumatra’s flagship asset, the Tembang gold mine located in southern Sumatra, Indonesia, is now in production. The first gold pour has been achieved on September 2015.

    • Tembang project Reserves & Resources: • USD 45 million debt funding provided by Nomura Singapore

    Limited and Indonesia Exim bank completed in Q4 2014 to fund commercial development of Tembang gold project.

    Gold (Oz) Silver (Oz)

    Proven & Probable Reserves 0.181 M 2.1 M

    JORC Resources 0.45 M 5.7 M

    Data presented are as of 30 Sep 2015

    Source: Company Information and public disclosures of PT Merdeka Copper Gold Tbk and Sumatra Copper Gold

  • 13

    Infrastructure

    Telecommunication Infrastructure

    PT Tower Bersama Infrastructure Tbk. Investment Date: 2009 Invested: IDR 936B Value of stake: IDR 9.3T Effective interest: 30.08%

    One of two leading independent tower businesses in Indonesia

    Principal business is leasing space for antennas and other equipment for wireless signal transmission at tower sites and shelter-only sites under long-term lease agreements

    Investment Thesis

    • Strong relationship with highly rated telco operators More than 80% of revenue is coming from the top 4 telco operators in the country

    • Long term customer contracts provide stable cash flows Long term (10 years) contracts provide high visibility of future revenue

    • Extensive build-to-suit and operational experience Capable of organically build 1500-2000 towers per year

    • Significant operating leverage from collocations Generally TBIG’s tower can accommodate 3 tenants Telco’s desire to outsource and need for speed in network rollouts High demand to increase network coverage

    Recent Events • TBIG Won Five Award on Indonesia Human Capital Study (IHCS)

    Awards 2015: Best of HC Index on Infrastructure Sector, Best of Employee Net Promoter Score, Best HC Initiative on Performance Management System, Best All HC Criteria, Best of CEO Commitment of HC Development

    • Completed Hedging on exchange rate and interest rate on all USD loans until 2022.

    Key Operational & Financials Metric 2013 2014 1H 2015

    Telco sites 10,134 11,820 12,159

    Total tenants 16,577 19,072 19,416

    Tenancy Ratio (x) 1.73 1.67 1.65

    Revenue (IDR B) 2,691 3,307 1,672

    EBITDA (IDR B) 2205 2,717 1,417

    Annualized EBITDA Margin (%) 82.0 82.2 84.6

    Net Debt (IDR B) at hedged rate 11,013 13,934 14,060

    Net Debt to Annualized EBITDA (x) 4.55 4.84 4.92

    Data presented are as of 30 Sep 2015

    Source: Company Information, PT Tower Bersama Infrastructure Tbk.’s public disclosures

  • 14

    Infrastructure

    Toll-Road

    PT Lintas Marga Sedaya Investment Date: 2006 Invested : IDR 215B (Equity) USD 8.3M (Mezz) Value of stake: IDR369B (book value) Effective interest: 18.0% Concession holder for the 116KM Cikopo-Palimanan toll

    road, part of Trans Java toll-road. The toll road is expected to create multiplier effects for the

    economic growth in the region. Passes 5 regents in West Java: Purwakarta, Subang,

    Majalengka, Indramayu, and Cirebon. Outlook

    Strong partnership and

    management team

    Successful completion of the project was supported by strong partnership between the shareholders and management team. Saratoga’s top management actively engaged in the company:

    – Edwin Soeryadjaya, President Commissioner

    – Sandiaga S. Uno, Commissioner

    – Arif Bone, GM Finance

    Favourable growth

    prospects

    Since the commercial opening of the toll road, traffic volume has been achieved Crossing the busiest regions in the country, traffic on the Cipali toll-road will continue to grow along with the economic growth in the region

    Project Highlights

    Construction Commencement 1 Feb 2013

    Commercial Opening 13 Jun 2015

    Concession Period 35 years

    Tariff (Class 1) IDR 823/km

    Project Cost IDR 12.6 T

    Company Structure

    UEM BUS

    LMS

    55% 45%

    SRTG

    40%

    2006 First invested IDR2.2B to

    acquire effective 10.5% of LMS through PT Baskhara

    Utama Sedaya

    2012 Acquired a further 18.07% of BUS

    for IDR 43.5B and injected IDR132.5B as an advance capital

    30 Jun 2015 Eff. interest: 18.0% Investment Book

    Value = IDR 362.8B

    2008 Invested

    additional IDR28.2B

    2010 2011 2013 2006 2008 2009 2012 2014 2015 2007

    2013 Commenced Construction

    Provided USD 8.3mio mezzanine loan with 16%

    interest p.a.

    2007 Invested additional

    IDR9.5B Invited PLUS Expressway

  • 15

    Infrastructure

    Oil Refinery

    PT Tri Wahana Universal Investment Date: 2011 Invested: IDR 151B Value of stake: IDR 577B (book value) Effective interest: 35% The only privately-owned oil refinery in Indonesia with

    integrated license from refining to retail distribution. Located in Bojonegoro Regency, East Java, Indonesia, 5 km from

    Banyu Urip oil field operated by Mobil Cepu Ltd Products: High Speed Diesel (68%), Straight-Run Gasoil (2%),

    Residue: Vacuum Tower Bottom (VTB) & Heavy Vacuum Gas Oil (30%)

    Investment Thesis

    • Strategic location to feedstock TWU located 5km from Banyu Urip oil field allowing supply to be transferred through pipe Maintained low transportation cost

    • Capacity expansion and high potential growth Replication of the business model in other places in the country Increase refining capacity in the existing location Improvement in secondary process to increase production efficiency

    • Strong Demand Domestic demand for fuel is expected to grow at 6% CAGR while production growth remain stagnant

    • Experienced Management With more than 20 years experience, senior management has extensive operational know-how and long-standing relationships in the oil refinery industry

    Key Operational & Financials Metric 2013 2014 9M 2015

    Average Production (bopd) 8,757 13,776 15,299

    Refining Capacity 10,000 16,000 16,000

    Revenue (IDR B) 3,579 6,034 3,321

    Gross Profit (IDR B) 337 728 691

    Data presented are as of 30 Sep 2015

    Source: Company Information

  • 16

    FINANCIAL OVERVIEW

  • 17

    Consolidated 9M 2015 Results Continue to Prove Up the Resilience

    of Business Model

    in IDR billions 2013 2014 9M 2014 9M 2015 YOY Change

    Net Revenue 3,659 6,124 4,653 3,400 - 27%

    Gross Profit 373 739 507 729 44%

    Gross Profit Margin 10% 12% 11% 21%

    Net Share Profit from Associate 933 943 814 453 - 44%

    Profit attributable to Shareholders 246 803 762 822 8%

    Cash and Equivalent (include Restricted Cash) 406 538 331 1,045 216%

    Investment in Associate (include Advances) 11,133 11,076 10,534 10,904 4%

    AFS 2,333 2,092 2,417 2,906 20%

    Net Debt 3,452 3,771 3,753 4,448 19%

    • Decrease in Net Revenue is affected by the decline in crude oil price, offset by +13.5% (yoy) in refinery production. • Gross profit increased due to crack spread improvement caused by pricing gap in a declining oil price environment • Profit attributable to shareholders is primarily driven by robust results of refining business (IDR 413B) as well as a one-

    off impact (IDR 1.1T) resulting from reclassification in Merdeka Copper Gold from the equity to cost method due to the dilution following Merdeka’s IPO. Profit is offset by unrealized FX loss of IDR 443B.

    • Decline in Net Share Profit from Associate is mainly driven by challenging environment in our natural resources sector which has also impacted the slow-down in Indonesia’s economic growth including the consumer sector.

    Data presented are as of 30 Sep 2015

    IDR/USD as of 30 Sep 2015 = 14,657

    Source: Company information

  • 18

    Strong Funding Availability to Support Investment Activities

    Aligning Loan Maturity Profile with Investment Duration

    -5

    -31

    -63 (incld. IDR MTN eq. $55)

    -156 (incld. USD 100 EB)

    -92

    -14 -55

    -100

    2015 2016 2017 2018 2019 2020

    Maturity Profile (USD millions) as per 30 Sep 2015

    Diversifying Funding Sources

    Maintaining the ability to tap diverse funding sources whilst managing cost effective and conservative leverage is a key part of our active investment operating model

    • Bank Loans Types: Revolving Credit Facility, Bilateral Loan,

    Syndicated Loan Banks: SCB, ING, Natixis, HSBC, and others

    • Medium Term Notes Issued a 3-year IDR 725 billion MTN in October

    2014 with a fixed rate of 11.75% Offered under private placement Arranger: DBS Vickers

    • Exchangeable Bond Issued a 5-year, put option at year 3, USD 100

    million EB in May 2015 with a coupon of 3%, YTM 3.75%

    Exchangeable to TBIG common shares at IDR 10,707

    Underwriter: SCB and UBS

    Cash Availability:

    • Cash at Saratoga’s parent level (SIS and direct subsidiaries) as of 30 Sep 2015 is amounted to IDR 761 B or equivalent to USD 52 M, ample to cover borrowings in the next two years.

  • 19

    4,441

    10,887

    Net Debt Equity

    Parent Only Net Debt to Equity as of 30 Sep 2015

    Maintaining Conservative Leverage

    The Company calculates the NAV of its investments on the basis of: • For listed companies: the market value of the proportionate shares

    that are held by SRTG • For unlisted companies: the book value of SRTG’ shareholding in the

    company Where: • Market value is derived from the 2 week volume weighted average

    share price. • Book value is derived from investment at cost adjusted by

    accumulated profit or loss to arrive at the ending balance

    Conservative Net Debt to Net Asset Value of 0.31x

    Note: Gross asset value = NAV + cash

    89% listed, 11% unlisted

    0.41x

    4,441

    14,535

    Net Debt Net Asset Value

    Parent Only Net Debt & Net Asset Values as of 30 Sep 2015 (in IDR B)

    0.31x

    Data presented are as of 30 Sep 2015

    IDR/USD as of 30 June 2015 = 14,657

    Source: Company information

    Parent Only is defined as PT Saratoga Investama Sedaya Tbk Parent Company including Direct Subsidiaries. The Company calculates Net Debt to Equity based on : - Gross Borrowings (include EB and MTN) of the Company

    and Direct Subsidiaries adjusted by Cash and Cash equivalent including Restricted Cash.

    - Equity attributable to Shareholders.

  • 20

    Sou

    rces

    of

    Cas

    h

    Investment Income

    Dividend Income

    FY 2014: Adaro Energy

    IDR 129 bio* (USD 10.4m)

    FY 2014: Tower Bersama

    IDR 136 bio* (USD 10.9m)

    New in 2014: Nusa Raya Cipta

    IDR 4.9 bio (US$ 0.4m)

    Fixed Income

    Sale of Shares on Investee Companies liquidly traded*

    IDR 19,411 bio (US$ 1,560m)

    Sale of Shares of other Listed Investee Companies**

    IDR 3,775bio*** (US$ 303m)

    Monetize Unlisted Investee Companies***

    IDR 2,063bio*** (US$ 166m)

    Diversified Sources of Cash

    Saratoga has multiple internal sources of cash and liquidity

    Source: Company financials as of 31 December 2014

    * Consist of Adaro Energy and Tower Bersama

    ** Consist of Provident Agro, Mitra Pinasthika Mustika, Seroja

    Investment Limited, Nusa Raya Cipta, Sumatra Copper and Gold,

    Sihayo Gold, Finders Resources and Interra Resources

    *** Consist of Etika Karya Usaha, Tenaga Listrik Gorontalo, Medco

    Power Indonesia, Agro Maju Raya, Lintas Marga Sedaya, Sinar Mentari

    Prima, Tri Wahana Universal and Pulau Seroja Jaya

    Data presented are as of 31 Dec 2014

    IDR/USD as of 31 Dec 2014 = 12,440

    Source: Company information

    97 129

    145

    136

    72

    5.2

    5

    0

    131

    270

    217

    9M 201520142013

    Dividend Income (IDR B)

    Adaro Energy Tower BersamaNusa Raya Cipta TWUMPM

  • 21

    KEY INVESTMENT HIGHLIGHTS

  • 22

    Strong Sourcing Capability

    Founders

    Management Team

    • Our founders and management team’s long-standing experience and network of contacts in the Indonesian investment landscape and multiple sourcing channels provide us with business opportunities that are not available to others

    • Proven track record in adding value to and growing our investee companies through stronger access to potential business partners, financing channels and improved corporate governance

    EDWIN SOERYADJAYA Founder & President Commissioner

    Joined PT Astra International in 1978 and worked within the family business for over 15 years, serving as Vice President and Director

    Ernst & Young Indonesia Entrepreneur Of the Year in 2010

    SANDIAGA S. UNO Founder

    Chairman of the Association of Indonesian Market Traders Vice president of Micro, Small and Medium Enterprises and

    Cooperatives of the Indonesian Chamber of Commerce and Industry Chairman of the Indonesian Young Entrepreneurs Association

    MICHAEL SOERYADJAYA President Director

    JERRY NGO Finance Director

    ANDI ESFANDIARI Portfolio Director

    Appointed President Director in 2015, Director since 2013

    Commissioner of PT Multi Pinasthika Mustika Rent since 2012 and Director of PT Bareika Capital since 2010

    Appointed Independent Director in 2013, CFO since 2012

    Previously Executive Director of Institutional Banking at PT ANZ Bank Indonesia and held a number of senior positions at Standard Chartered Bank in Singapore, London and Vietnam

    Appointed Director in 2014 Commissioner of PT MPM Finance and PT MPM

    Insurance, PT Agro Maju Raya, and Director of PT Bareika Capital

    Previous experience include Austindo Group, Olympus Capital Holdings Asia, and Peregrine Securities

    Investee Companies Financial advisors

    Investee Companies offer us opportunities to partner with them for larger transactions and often refer other opportunities to us

    We frequently meet with investment banks and other parties that are representing entities seeking a purchaser or strategic investment partner

    1

  • 23

    Together with our partners, we grow our businesses to lead in their respective industries

    Growing through Partnership

    “We sought for a partner whose business focus and principles

    are aligned with ours and one that we can trust.

    PT Saratoga Investama Sedaya fits the criteria perfectly and

    seven years later, our partnership is stronger than ever. In

    many ways, a business partnership is similar to a marriage,

    and we have found our partner in Saratoga.”

    * UEM is Saratoga’s partner in building the 116KM Cipali toll-road

    Dato’ Izzadin Idris

    Group Managing Director

    CEO, UEM Group Berhad

    2

    http://3.bp.blogspot.com/_BSZf0Svsfl8/TDIBgvw05yI/AAAAAAAAAO0/hxn2Fh7B_8Y/s1600/medco_energi_logo.png

  • 24

    Strong Investment Track Record

    510 2,293 2,155

    8,002

    2,309

    11,401

    4,245

    8,248

    4,838

    7,838

    5,494 5,913 5,582 5,500

    90

    190 585

    3,891

    842

    4,035

    2,452

    8,074

    2,188

    8,337

    2,318

    13,911

    319

    421

    790 1,871

    2,458

    2,283

    1,680

    639

    1,037 1,568

    2,265

    1,764

    1,470

    2,964

    1,871

    3,567

    2,095

    1,239 2,293

    3,382

    8,002

    4,781

    15,292

    7,773

    12,283

    9,844

    17,382

    12,518

    18,579

    13,750

    23,186

    2008

    book

    value

    2008

    market

    value

    2009

    book

    value

    2009

    market

    value

    2010

    book

    value

    2010

    market

    value

    2011

    book

    value

    2011

    market

    value

    2012

    book

    value

    2012

    market

    value

    2013

    book

    value

    2013

    market

    value

    2014

    book

    value

    2014

    market

    value

    (IDR billion) Other MPM TBIG Adaro

    Investment portfolio has grown significantly and steadily since 2008 in terms of book value as well as market value, with growth coming from an increasing number of investee companies

    Notes:

    All financial numbers are based on their nominal values as of 31 December 2008, 2009, 2010, 2011, 2012, 2013 and 2014.

    No adjustments have been made for time value or inflation. The book value of our investments includes the carrying value of our investments and advances for investments.

    The book value of our investment in Adaro Energy includes the book value of our investment in PT Adaro Strategic Capital and PT Adaro Strategic Lestari.

    The book value of our investment in Tower Bersama includes the book value of our investment in PT Saratoga Infrastruktur

    The market value of our effective shareholding calculated using two week volume weighted average price as of 31 December 2008, 2009, 2010, 2011, 2012, 2013 2014.

    Source: Company financials, Bloomberg

    3

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    Sound investment strategy and corporate governance

    framework

    SIS is highly committed to ensuring that its investments satisfy its strict corporate governance framework and also cooperates with the International Finance Corporation to develop similar practices in investee companies

    ENVIRONMENTAL

    − Energy and water use

    − Land clearance practices

    − Emissions

    − Levels of natural resources utilization

    − Air and water pollution

    − Waste management

    − Activities in sensitive habitats

    SOCIAL

    − Local community relationships

    − Minimum working age

    − Minimum wage levels

    − Health and safety record and procedures

    − Union representation

    − Security force usage

    − Historical discrimination

    − Relationships with NGOs

    GOVERNANCE

    − Anti-corruption policies

    − Accounting and legal compliance

    − Related party transactions

    − Criminal conduct

    − Pending or threatened litigation

    − Historical transparency

    INVESTMENT COMMITTEE

    Provide independent recommendations on systems,

    procedures and implementation thereof in areas related to

    investment, capitalization of investment and divestments

    activities, monitoring of investment performance and

    active monitoring of investment risk profile

    NOMINATION AND REMUNERATION COMMITTEE

    Provide independent recommendations on the systems and

    procedures related to succession programs and

    identification of candidates for the Board of

    Commissioners and Board of Directors

    Provide independent recommendations on the

    determination of remuneration of members of the Board of

    Commissioners and Board of Directors

    AUDIT COMMITTEE

    Assist in implementing supervisory function, especially in

    financial information management, effectiveness of

    internal control systems, effectiveness of internal and

    independent audit, implementation of risk management

    and compliance with prevailing laws and regulations

    INVESTMENT

    CONSIDERATIONS

    4

  • 26

    Summary

    Saratoga, a partner for investors who wish to participate in the growth of early stage opportunities in Indonesia

    PRUDENT APPROACH

    PROVEN TRACK RECORD

    • Proven track record of investment success in Indonesia

    • Founders and management team’s long-standing experience and network of contacts in the investment landscape provide business opportunities that are not available to others

    • Consistently adding value and growing our investee companies as evidenced in the completion of the Cipali toll-road project.

    • Major portion of our investment portfolio consists of investments in the stable, established, blue chip companies

    • Good Corporate Governance and Prudent Investment Process

    • Conservative leverage and effective risk management

    HIGH GROWTH POTENTIAL

    • Focus on early stage, growth, and special situation opportunities with high growth potential. Our investments in Merdeka Copper Gold and Agra Energi Indonesia are cases in point.

    • Continuously explore additional investments where Saratoga can add value

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    PT Saratoga Investama Sedaya Tbk. Correspondence Address:

    Menara Karya 15th Floor

    Jl. H.R. Rasuna Said Kav. 1-2

    Jakarta 12950

    For further information, please contact:

    Leona Karnali: [email protected]

    VI/2015/11

    mailto:[email protected]:[email protected]:[email protected]