Jasa Marga Update FY2019holders Meeting 1 August 2019 Company Overview
2 Company Overview
Brief Snapshot Company Highlights • Leading toll road operator in Indonesia with 40 years of experience. • Largest toll road operator in Indonesia with 55% market share in term • 33 toll road concessions with total length of 1,527 km. of operated commercial toll roads lengths (±1,162 km). • 70% shares owned by the Government of Indonesia. • The longest concession period holder in Asia reflecting stable income. • Listed on the Indonesia Stock Exchange since 2007, with a market cap • Strategically important with strong government ownership. st IDR 37.6 trillion as of 31 December 2019. • Resilient industry with strong government focus. • Key business • Strong financial profile with promising growth going forward. • Construction, operation and maintenance of toll road • Supporting business / other business • Toll Road Operation Services (Provides operation services for Jasa Marga Group and other toll road investors) Vision & Mission • Toll Road Maintenance Services (Provides maintenance services for Jasa Marga Group and other toll road investor) To be the largest, trusted and sustainable national toll • Related Business (Manages rest areas and other properties on toll Vision road network company. road corridors)
2019 Revenue Breakdown 1. Lead toll road business along the end-to-end value chain professionally and continuously to improve Toll Revenue – Other Business National connectivity Subsidiaries Revenue 2. Optimize regional development for community 8% 16% progress Mission 3. Increase value for shareholders.. 4. Enhance customer satisfaction through service excellence Toll Revenue – Jasa 5. Encourage the development and enhancement of Marga employee performance in a harmonious (13 old concessions environment. in balance sheet) 76% 3 Company Key Development Milestone
✓Government offered the opportunities ✓Jasa Marga was established with focus for the private sector to participate in on business management, maintenance toll road business through Build, and procurement of the toll road Jasa Marga became a public Operate and Transfer (BOT) system network. The authority function was returned company through an Initial Public with Jasa Marga. to the Government, Toll Road Offering (IPO) and listed its shares ✓Jagorawi as the first toll road in ✓Jakarta Toll roads operated by Jasa Regulatory Agency (BPJT) under the on the Indonesia Stock Exchange. Indonesia began its operation. Marga initiated its operations Ministry of Public Works. gradually.
1978 1987 2004 2007
✓Fully implemented electronic payment system in all toll roads ✓Integrate Jakarta-Tangerang and ✓ Currently operating 24 toll road change system in Jagorawi Toll concessions (±1,000 km) Road ✓ Issue alternative financing Forming of PT Jasa ✓Issue alternative financing product: Mutual Fund Limited Implementation of Implementation of Layanan Operasi (non product: Securitization, Project Participation (Reksa Dana e-Toll Pass. e-Toll Card. toll road subsidiary. Bond, Komodo Bond. Penyertaan Terbatas)
2009 2012 2015 2017 2018
4 Company Structure
Jasa Marga has 13 concession of toll roads which operated by Branches (mature toll roads) and 20 concession of toll roads which operated through subsidiaries.
Shareholders Structure Government Parent Level of Indonesia (“GOI”) 1. Cawang-Tomang-Pluit (Jakarta Inner Ring Road) 2. Prof. Dr. Ir. Sedyatmo (Airport) 3. Padalarang Ministry of State-Owned Enterprises 4. Cileunyi (“MSOE”) 5. Jakarta-Cikampek 6. Palikanci 7. Jagorawi 70% 8. Surabaya-Gempol 9. Semarang 10. Jakarta Outer Ring Road 11. Ulujami-Pondok Aren Public 30% 12. Jakarta-Tangerang 13. Belmera
As of 31 December 2019
PT Jasamarga Related Business 40% 99.9%
50.91%
63%
Toll Road Subsidiaries Other Business Subsidiaries 5 Resilient Industry With Favorable Growth Trends
Economic condition, reflected as fluctuating car sales growth in Indonesia, has minimal impact to our transaction volume, however increase in car sales will contribute to higher transaction volumes in the long run.
Toll Revenues on Jasa Marga Toll Road (in Rp Trillion) Car Sales in Indonesia (in million vehicles)
Economic Slow Down
1.23 7.557.74 1.21 7.10 1.12 1.15 1.06 1.08 6.296.55 Fuel Price Hike 1.01 5.505.70 0.89 4.81 0.77 4.28 3.63 0.61 3.32 Economic Crisis 0.53 0.48 0.49 2.62 0.43 2.27 0.39 1.80 0.35 1.53 0.30 0.30 0.32 0.32 1.011.28 0.730.67 0.74 0.85 0.92 0.06 0.09
Consistent growth in revenues demonstrates resilience of toll road Robust estimated growth in car sales indicate batter economic growth is industry a positive driver for the toll road industry
Source: Jasa Marga Source: http://www.gaikindo.or.id (1)
Note: (1) GAIKINDO: Gabungan Industri Kendaraan Bermotor Indonesia (The Association of Indonesian Automotive Industries).
6 Strong Corporate Governance and Highly Qualified Management Team
Experience management with over 25 years of experience, deep understanding on the industry/sector, and long-term relationship with stakeholders.
Desi Arryani – President Director • Indonesia citizen, 56 years old, appointed through Extraordinary GMS on 29th August 2016. • Has working experience in Construction sector more than 20 years. Previously served as Operations Director I of PT Waskita Karya (Persero) Tbk which is SOE contractor in Indonesia. • Completed Bachelor Degree in Civil Engineering from University of Indonesia (1987) and Master degree in Management from Prasetiya Mulya (2008).
Donny Arsal – Director of Finance • Indonesia citizen, 48 years old, appointed through Annual GMS on 15th March 2017. • Has working experience in Financial sector more than 23 years. Previously served as Managing Director PT Mandiri Sekuritas for Investment Banking Division. • Completed Bachelor Degree in Economics from University of Indonesia (1994).
Mohammad Sofyan – Director of Business • Indonesia citizen, 47 years old, appointed through Extraordinary GMS on 15th March 2017. • Joined Jasa Marga since 1997. Has working experience in toll road industry more than 20 years. Previously served as Corporate Secretary Jasa Marga. • Completed Bachelor Degree in Civil Transportation Engineering at Sepuluh November Institute of Technology Surabaya (1996) and Master Degree in Project Management from University of Indonesia (2003) and Master Business & IT from Melbourne University (2007).
Subakti Syukur – Director of Operation • Indonesia citizen, 56 years old, appointed through Extraordinary GMS on 29th August 2016. • Joined Jasa Marga since 1986 and has working experience in toll road operations more than 20 years. Previously served as President Director of PT Marga Lingkar Jakarta, one of Jasa Marga’s Toll Road Subsidiary. • Completed Bachelor Degree in Civil Engineering from Bandung Institute of Technology (1986) and Master degree in Management from University of Kristen Indonesia (2010).
Adrian Priohutomo – Director of Development • Indonesia citizen, 55 years old, appointed through Annual GMS on 10th April 2018. • Has working experience and major success in conceptualizing, developing and managing commercial and housing estates. Previously served as President Director of PT Permata Graha Nusantara, one of PT Perusahaan Gas Negara (Persero), Tbk. • Completed Bachelor Degree at Bandung Institute of Technology (1988).
Alex Denni – Director of Human Resources and Transformation • Indonesia citizen, 50 years old, appointed through Extraordinary GMS on 5th September 2018. • Has working experience in Human Resource Development. Previously served as Chief Human Capital Officer PT Bank Negara Indonesia (Persero) Tbk appointed as Director and Chief Learning Office & Head of Corporation University PT Bank Mandiri (Persero) Tbk. • Completed Bachelor Degree in Management of Industrial Agro at Intitut Pertanian Bogor (1990) and Master Degree in Management at Universitas Atma Jaya (1997) dan Doctoral Degree in Human Capital at Institut Pertanian Bogor (2011). 7 Industry Overview
8 Overview of the Indonesian Toll Regulation
Advantages of Highly Regulated Industry • Certainty of tariff increase every two years according to regulation • The timing of the land acquisition process is faster, if any dispute is decided by the court • Potential for efficiency from cashless transaction Overview of The Authorities Toll Tariff Government of Indonesia • Initial toll tariff is calculated based on • investment feasibility, toll road user’s ability to pay and vehicle operating cost saving • Initial toll tariff is stipulated in concession agreement prior to start
Ministry of State- Ministry of of construction Owned Enterprises Public Works • Tariff adjustment is regulated by law, is calculated based on regional CPI and is adjusted once every 2 years Indonesian Toll Road Directorate General • Initial toll tariff setup and subsequent adjustment is decided by Authority (BPJT) of highways Minister of Public Works decree Concession − The ministry may postpone tariff increases if a toll road fails to agreement Concession comply with minimum service standards Private toll agreement road investors Concession Agreement Method Land acquisition Tender Acquisition Unsolicited • Land acquisition is government’s responsibility and is undertaken by land procurement committee appointed by the Government 100% Cashless Transaction • The land acquisition comprises four stages: planning, preparation, execution and delivery ▪ High efficiency on collection expanse and faster transaction period that − The law also regulates a deadline for land acquisition of 312 to a will reduce traffic flow, minimize the cost of providing change and cash maximum of 552 working days handling and Toll Revenue Security and minimize the potential for any • Price is determined by independent appraiser based on fair market authenticity toll payment instrument price ▪ Improving the Quality of Operational Human Resources (improving health • Investors may provide bridge financing for land acquisition costs to quality of toll collectors), increase transaction capacity without having to speed up the acquisition process, government will repay the add transaction point and efficiency of toll collecting costs investors for the land acquisition costs
9 Company Update
10 Leading Toll Road Industry
Market Share
Operated Toll Road
PT Astra Tol PT Citra Marga 1,527 km Nusantara Nusaphala Persada Commercial Concession Toll Road 11% 3%
PT Waskita Karya 10% PT Jasa Marga ± 1,162 km (Persero) Tbk 55% PT Hutama Karya Accumulated Toll Road in Operation 18%
PT Nusantara Infrastruktur 2% 162 km Lain-lain 1% Additional Operated Toll Road in 2019 Jasa Marga’s • Medan-Kualanamu-Tebing Tinggi Section VII ( 9.26 km) Operated Toll Road 55% • Gempol – Pandaan ( 1.6 km) • Pandaan – Malang Section 1-4 (35.38 km) • Kunciran – Serpong (11.14 km) • Jakarta – Cikampek Elevated (38.00 km) • Balikpapan – Samarinda Section 2 – 4 (66.35 km)
11 Financial Highlight
EBITDA growth and solid capital structure during the business expansion.
Revenue EBITDA EBITDA Margin
Rp Trillion Rp Trillion 6.88 10.98 6.02
62.7% 9.78 61.6%
2018 2019 2018 2019 2018 2019
Interest Bearing Debt to Interest Coverage Ratio Total Liability to Total Equity Total Equity (ICR)
3.30x 3.27x 2.83x 3.08x 1.87x 1.66x
2018 2019 2018 2019 2018 2019 12 Jasa Marga’s Toll Road Network
The Company currently operates 1,162 km toll road which represents 60% market share in terms of the length of operated toll road (km).
Strait of NORTH SUMATERA SUMATERA Malacca▪ BelmeraBelmera:: 42.7 42.70 km km ▪ Medan--KualanamuKualanamu-Tebing-TebingTinggiTinggi: 61.7: 61.70 km km GREATER JAKARTA JAKARTA & WEST & WEST JAVA JAVA ▪ Jagorawi: 59.0 59.00 km km ▪ Jakarta-Tangerang-Tangerang: 33.0: 33.00 km SUMATRASUMATRA km MALUKUMALUKU ▪ Ulujami-Pondok-PondokArenAren: 5.56: 5.55 km km
▪ Jakarta Inner Inner Ring Ring Road: Road: 23.6 23.55 km km SULAWESISULAWESI NORTHORTH SULAWESI SULAWESI ▪ Prof. Dr. Dr. Ir. Ir. Sedyatmo Sedyatmo: 14.3: 14.30 km km KALIMANTANKALIMANTAN ▪ Manado-Bitung-Bitung: 39: 39.9.9kmkm ▪ Jakarta-Cikampek:-Cikampek: 83.0 83.00 km km PAPUAPAPUA EAST KALIMANTAN EAST JAVA JAVA ▪ JORR: 28.3 28.3 km km JavaJava SeaSea EAST KALIMANTAN ▪ Balikpapan-Samarinda: 99.4 km ▪ Surabaya-Gempol:-Gempol: 49.0 49.00 km km ▪ Cikampek-Padalarang-Padalarang: 58.5: 58.50 km km ▪ Balikpapan-Samarinda: 99.35 km Banda Sea ▪ Gempol-Pandaan-Pandaan: 13.6: 13.61 km km ▪ Padaleunyi: 64.4: 64.40 km km ▪ Gempol-Pasuruan: 34.15 km JAVAJAVA ▪ Gempol-Pasuruan: 34.2 km ▪ Palikanci: 2 6.326.30km km ▪ Surabaya-Mojokerto: 36.27 km BALIBALI ▪ Surabaya-Mojokerto: 36.3 km ▪ JORR W2 W2 North: North: 7.7 7.70 km km Timor Sea ▪ Pandaan-Malang:-Malang: 37.6 37.62 km km ▪ Bogor Ring Outer Road: Ring 11.0 Road: km 11.00 km CENTRALCENTRAL JAVA JAVA IndianIndian OceanOcean ▪ Probolinggo-Banyuwangi: 172.9 km ▪ Cengkareng-Kunciran-Kunciran: 14.2: 14.19 km km ▪ ▪Semarang:Semarang: 24.8 km 24.75 km BALI ▪ Kunciran-Serpong:-Serpong: 11.2 11.19 km km ▪ ▪SemarangSemarang-Solo: -72.6Solo: km 72.64 km ▪ Nusa Dua-Ngurah Rai-Benoa: 10.00 km BALI ▪ Cinere-Serpong-Serpong: 10.: 10.1 km14 km ▪ ▪Solo-SoloNgawi-Ngawi: 90.4 :km 90.1 km ▪ Nusa Dua-Ngurah Rai-Benoa: 10.0 km ▪ Jakarta-Cikampek-CikampekII Elevated:II Elevated: 36.4 36.4 km km ▪ ▪NgawiNgawi-Kertosono-Kertosono-Kediri:: 114.9587.02 kmkm ▪ Jakarta-Cikampek II Selatan: 64 km ▪ ▪BatangSemarang-Semarang:-Batang: 75.0 km 75 km Legend Accumulation of Toll Road Operated (km) Accumulation of Concession Right (km) : Fully Operated (24 projects) 1,497 1,527 1,527 1,260 : Partially Operated (4 projects) 1,000 1,162 987 590 593 680 : In Land Acquisition and Construction (5 projects)
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 13 Jasa Marga’s Toll Road Projects
Currently, Government accelerates infrastructure development to connect Indonesia. All Jasa Marga’s toll road projects are part of Strategic National Project and being monitored intensively by Government.
Concession Period Length Jasa Marga Section (year) (km) Ownership Funding Structure Old Concession 13 Old Concession 2044 512.10 100% A. Fully Operated Equity 30% 1 Nusa Dua-Ngurah Rai-Benoa 2057 9.70 55.00% 2 JORR W2 North (part of JORR) 2044 7.67 65.00% 3 Surabaya-Mojokerto (part of Trans Java) 2049 36.27 55.51% Bank Loan at 4 Solo-Ngawi (part of Trans Java) 2055 91.09 40.00% Subsidiary 5 Semarang-Solo (part of Trans Java) 2055 72.64 58.90% Level 6 Gempol-Pasuruan (part of Trans Java) 2058 34.15 99.35% 70% 7 Batang-Semarang (part of Trans Java) 2061 75.00 40.00% 8 Medan-Kualanamu-Tebing Tinggi 2054 61,70 55.00% 9 Gempol-Pandaan 2049 13.61 40.00% B. Partially Operated Historical Cash Capex 10 Bogor Ring Road 2054 11.95 55.00% 11 Ngawi-Kertosono-Kediri (part of Trans Java) 2066 114.92 40.00% Rp Trillion 12 Pandaan-Malang 2051 38.49 60.00% C. In Land Acquisition and Construction 15.48 15.21 13 JORR2 (Cengkareng-Kunciran) 2052 14.19 76.20% 14 JORR2 (Kunciran-Serpong) 2052 11.14 60.00% 11.38 15 JORR2 (Serpong-Cinere) 2052 10.14 55.00% 16 Balikpapan-Samarinda 2055 98.89 63.00% 6.02 17 Manado-Bitung 2056 39.90 65.00% 4.01 18 Jakarta-Cikampek II Elevated 2061 36.40 80.00% 19 Jakarta-Cikampek II South 35 years from effective date 64.00 80.00% 20 Probolinggo-Banyuwangi 35 years from effective date 172.91 94.84% 2015 2016 2017 2018 2019 TOTAL 1.527 14 Jasa Marga’s Upcoming Project: Greater Jakarta
4 projects
Cengkareng – Kunciran (14.19 km) Progress Land Acquisition: 88.12% Progress Construction: 82.38%
Serpong – Cinere (10.14 km) Progress Land Acquisition: 90.61% Progress Construction: 81.42% Jakarta-Cikampek II Selatan (64 km) Progress Land Acquisition: 37.99% Progress Construction: 9.84%
Bogor Ring Road (11 km) (Section 3A Yasmin – Semplak) Progress Land Acquisition: 88.25% Progress Construction: 95.02%
Partially Operated In Land Acquisition and Construction *As of 1st May 2020 15 16 Jasa Marga’s Upcoming Project: Java
Java: 2 Projects Ngawi – Kertosono – Kediri (114.92 km)
JAKARTA Progress Land Acquisition (Wilangan-Kertosono): 0% Progress Construction (Wilangan-Kertosono): 0%
BANDUNG SURABAYA Probolinggo-Banyuwangi (172.91 km) Progress Land Acquisition: 1.31% Progress Construction: 0%
Outside Java: 2 Projects
Manado-Bitung (39 km) MALUKUProgress Land Acquisition: 96.74% Progress Construction: 64.64%
SULAWESI Balikpapan-Samarinda (99.35 km) Progress Land Acquisition: 99.70% KALIMANTAN Progress Construction: 98.38% *As of 1st May 2020 Partially Operated 16 In Land Acquisition and Construction Appendix
17 Transaction Volume by Section (Million vehicle transactions)
*The impact of removal some toll gates due to changes of transaction system from closed system to open system 18 Toll Revenue by Branch/Subsidiary (Rp Billion)
Notes : (1) Deconsolidated since 1H2017 (2) Deconsolidated since Q3 2018 (3) Deconsolidated since 1H 2019 19 Financial Highlight: Balance Sheet (Rp Billion)
20 Financial Highlight: Income Statement (Rp Billion)
21 Disclaimer
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In addition, the information contained in this presentation contains projections and forward-looking statements that reflect the company's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control of the company and its directors. No assurance can be given that future events will occur, that projections will be achieved, or that the company's assumptions are correct. Actual results may differ materially from those forecast and projected.
This presentation is not and does not constitute or form part of any offer, invitation or recommendation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. This presentation may not be used or relied upon by any other party, or for any other purpose, and may not be reproduced, disseminated or quoted without the prior written consent of the company. Any investment in any securities issued by the company or its affiliates should be made solely on the basis of the final offer document issued in respect of such securities. 22 Thank You PT Jasa Marga (Persero) Tbk. Plaza Tol Taman Mini Indonesia Indah Jakarta 13550 - Indonesia Phone. +62 21-8413526, 8413630 Fax. +62 21-8401533, 8413540 Email. [email protected] Email. [email protected] www.jasamarga.com