1H15 Financial Report Highlights

PT Jababeka Tbk (“KIJA”) recorded a total revenue of Rp 1,475 billion in 1H15, an increase of just over 2% compared to the same period in 2014. At the same time, KIJA achieved a revenue growth of more than 12% in 2Q15 compared to 1Q15, mainly as a result of increased sales from the land development segment, which grew 34% QoQ.

Recurring revenue from the infrastructure businesses (mainly power, water & port) make up 62% of the revenue in 1H15, compared to 53% in 1H14. This overall larger portion of recurring revenue is the main reason that the consolidated gross profit margin reduced from 49% in 1H14 to 42% in 1H15. KIJA’s consolidated gross profit margin in 2Q15 stand-alone is calculated at 43%, up from 40% in 1Q15 as a result of relative more contributions from the land development segment. Infrastructure revenue, although providing steady, predictable cash flows, have lower gross profit margins than the land development business.

Net income was recorded at Rp 249 billion as per June 30 2015, lower compared to the prior year when KIJA recorded Rp 419 billion in net income. The main reason for this decline is the result of the aforementioned lower gross profit, which accounts for Rp 90 billion alone. In addition, the impact of foreign exchange gains and losses in 1H15 and 1H14 also has a significant impact on the aforementioned decrease in net income as 1H14 shows an overall net forex gain of Rp 40 billion, whereas 1H15 a net forex loss of Rp 15 billion.

KIJA’s total debt as of June 30 2015 is recorded at Rp 3,926 billion equivalent, however, this still includes the remaining portion of the 2012 Senior Notes amounting to Rp 538 billion equivalent (as per June 30, 2015), which was subsequently fully redeemed on July 26, 2015. Source of funds for this redemption came from the US$ 70 million re-tap issuance of the 2014 Senior Notes that KIJA executed in May 2015.

Moreover, KIJA has recently added an additional US$ 25 million notional worth of call spreads, making the total hedged US$ notional US$ 175 million. As a result of this latest transaction, the average lower strike now stands at 12,864 Rupiah per 1 US$ with an average spread of 1,943 Rupiah. KIJA continues to monitor the markets and contemplates to execute more call spreads in the near to medium term.

Please reach out if you have questions and/or comments.

Thank you for your attention,

Tim Beekelaar

P.S. Please access our 1H15 financial statement sat IDXnet by accessing the following link: www.idx.co.id/Portals/0/StaticData/NewsAndAnnouncement/ANNOUNCEMENTSTOCK/From_EREP/201507/5a0182e493_72475da2d2.pdf or via http://www.idx.co.id/en-us/home/listedcompanies/announcement.aspx and search for KIJA.