Deutsche Bank Research IndoTelco and Tower

Deutsche Bank
Research
Asia Industry Date

Indonesia 2 July 2019
DB IndoTelco and
Telecommunications Industry Update
Telecommunications Tower
Win-win-win scenario
Raymond Kosasih
Wins for all major parties PT Deutsche Verdhana Sekuritas Indonesia
We expect the Indonesian telecom and tower sectors will have three winners in the Research Analyst
long run: (in alphabetical, not preference, order) potentially TBIG, TLKM, and +62-21-2964 4525
TOWR. We have Buy ratings for all three stocks, which will likely continue to domi-
nate their respective sectors. However, all of them are trading at deep discounts to Top Picks
their respective all-time-highs, with TBIG showing the deepest discount of over Telkom (TLKM.JK),IDR4,220.00 Buy
50pct from its historical peak share price. Tower Bersama
Buy
(TBIG.JK),IDR3,850.00
We think the three stocks share a common major catalyst that could catapult their Sarana Menara Nusantara
Buy
share prices to respective highs (and potentially above our target prices), creating (TOWR.JK),IDR705.00
a win-win-win scenario – specifically, we mean the Telkomsel (Tsel) tower portfolio. Source: Deutsche Bank
Companies featured
Telkomsel (Tsel) currently has the most number of towers at approx 18K units
Telkom (TLKM.JK),IDR4,220.00 Buy
spread across the archipelago. As a group, TLKM has approximately 31K towers
2018A 2019E 2020E
altogether, making it the biggest co with the most number of towers. The substan-
P/E (x) 20.8 20.8 18.5
tial tower portfolio has been Tsel’s key competitive advantage. However, as the
industry moves away from legacy services (such as voice and SMS) towards data, EV/EBITDA (x) 7.1 6.9 6.3
we think that within the next three years (current data accounts for over 60pct of Price/book (x) 3.76 3.52 3.34
cellular revenue at Tsel), the strategic value of holding its own towers would erode Tower Bersama (TBIG.JK),IDR3,850.00 Buy
for Tsel. Thus, we think Tsel has a great opportunity to divest its tower portfolio – not 2018A 2019E 2020E
to its sister co Mitratel (not listed) but to independent tower cos, so as to fully realise P/E (x) 35.0 19.5 16.1
the value of these 18K towers. EV/EBITDA (x) 12.6 10.3 9.9
Price/book (x) 4.84 4.09 3.26
Based on reported FY18 numbers, we see that Tsel towers don't generate much Sarana Menara Nusantara
value. TLKM reported tower rental revenue of only Rp909bn (+14% YoY). Although Buy
(TOWR.JK),IDR705.00
above the tower rental revenues booked by its peers – ISAT Rp891bn (++6% YoY) 2018A 2019E 2020E
and XL Axiata Rp315bn (-16% YoY) – TLKM group's tower rental revenue indicates P/E (x) 13.2 13.9 11.9
considerably inefficient towers, given that it has 31K towers (compared to ISAT's
EV/EBITDA (x) 8.3 8.1 7.1
about 8,000 and EXCL's about 4,000). This suggests an extremely low yield on a
Price/book (x) 4.38 3.76 3.17
per-tower basis for TLKM group (and certainly for Tsel).
Source: Deutsche Bank
Should Tsel divest itself of its towers, we think this might fetch a valuation of approx
US$125,000-150,000 per tower, given its more strategic locations than those of
many of its peers. Also, Tsel's superior credit rating would likely result in cheaper
funding cost for the potential acquirer of these towers. This could bring a valuation
Deutsche Bank AG/Hong Kong

This research has been prepared in association with PT Deutsche Verdhana Sekuritas Indonesia. The opinions contained in this
report are those of PT Deutsche Verdhana Sekuritas Indonesia.
Distributed on: 02/07/2019 04:39:08 GMT
Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware
that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report
as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED
IN APPENDIX 1. MCI (P) 066/04/2019.
7T2se3r0Ot6kwoPa
2 July 2019
Telecommunications
DB IndoTelco and Tower
of more than US$2bn, which could be used to pay a special dividend.
The longer-term impact on Tsel's margin will be muted, in our view, given its rising
economies of scale and that the on-going migration of its subscribers towards 4G
could enhance data margin, thereby mitigating any margin risks that might arise.
Meanwhile we see only two potential buyers of Tsel's towers – TBIG and TOWR – not
only because of their scale but also their proven track records as major independent
tower cos. They are also the lowest-cost tower cos (from a debt cost perspective).
Given the above factors, we visualise a win-win-win scenario. Hence, we maintain

our Buy ratings for TBIG, TLKM and TOWR (not in order of preference).
Valuations and risks

TLKM – We maintain our Buy rating and target price of Rp4,575. Our DCF parame-
ters include rf of 6.2%, k of 7.5%, and TG of 2.5%. Downside risks include adverse
macroeconomics, asymmetric regulatory changes, irrational competition, lower
subscriber spending, difficulty in securing new sites for network expansion, tough-
er competition outside of Java, and higher opex (particularly non-regulatory-related
costs such as towers). Another key risk for TLKM is consensus' significantly high-
er earnings projections vs. our estimates, which suggests some risk of TLKM
missing consensus estimates.
For TBIG, we have a TP of Rp6,500. We derive our TP based on DCF (rf 6.2pct, k
7.5pct and TG 2.5pct). Risks are an adverse macro environment, difficulties in get-
ting new sites, lower co-location ratios, lower contract rates including renewal con-
tracts, and/or higher non renewals.
For TOWR, we have a TP of Rp1,000. Our TP is based on DCF with key parameters
rf 6.2pct, k 7.5pct and TG 2.5pct. Downside risks include adverse macroeconomic
trends, lower renewal leasing rates, slower co-lo orders, difficulties in securing new
sites to accommodate demand from telcos, not high exposures to Tsel, and/or fail-
ure to get additional orders from TSEL.
Page 2 PT Deutsche Verdhana Sekuritas Indonesia

2 July 2019
Telecommunications
Model updated: 24 May 2019 Fiscal year end 31-Dec 2016 2017 2018 2019E 2020E 2021E
Running the numbers Financial Summary
Asia DB EPS (IDR) 195.75 223.16 181.34 203.07 228.48 252.86
Reported EPS (IDR) 195.35 223.55 182.03 203.07 228.48 252.86
Indonesia DPS (IDR) 113.19 117.37 167.66 163.82 182.76 205.64
BVPS (IDR) 851.8 935.9 998.5 1,199.5 1,264.1 1,334.2
Telecommunications
Weighted average shares (m) 99,062 99,062 99,062 99,062 99,062 99,062
Average market cap (IDRbn) 376,251 426,544 373,749 416,381 416,381 416,381
Telkom Enterprise value (IDRbn) 397,972 454,115 417,486 447,856 449,592 449,013
Reuters: TLKM.JK Bloomberg: TLKM IJ
Valuation Metrics
P/E (DB) (x) 19.4 19.3 20.8 20.8 18.5 16.7
Buy P/E (Reported) (x) 19.4 19.3 20.7 20.8 18.5 16.7
P/BV (x) 4.67 4.74 3.76 3.52 3.34 3.16
Price (1 Jul 19) IDR 4,220.0
FCF Yield (%) 7.4 4.9 2.5 6.1 5.8 7.1
Dividend Yield (%) 3.0 2.7 4.4 3.9 4.3 4.9
Target Price IDR 4,575.0
EV/Sales (x) 3.4 3.5 3.2 3.3 3.1 2.9
52 Week range IDR 3,270 - 4,220 EV/EBITDA (x) 6.7 7.0 7.1 6.9 6.3 5.9
EV/EBIT (x) 9.7 10.3 11.1 10.8 9.9 8.9
Market cap (m) IDRm 416,381
USDm 29,504 Income Statement (IDRbn)
Sales revenue 116,333 128,256 130,784 137,583 144,727 154,339
Company Profile Gross profit 116,333 128,256 130,784 137,583 144,727 154,339
Telekomunikasi Indonesia is a telecommunication company EBITDA 59,498 64,609 59,181 65,039 71,024 76,035
that provides local and long distance telephone services. Depreciation 18,532 20,446 21,406 23,439 25,700 25,839
In addition, The Company also provides non-telephone Amortisation 0 0 0 0 0 0
telecommunication services such as satellite transponder EBIT 40,966 44,163 37,775 41,600 45,323 50,196
leases, telexes, telegrams, and leased circuits. Net interest income(expense) -1,094 -1,335 -2,493 -2,012 -1,592 -1,689
Associates/affiliates 0 0 0 0 0 0
Exceptionals/extraordinaries 0 0 0 0 0 0
Other pre-tax income/(expense) -1,683 -169 1,123 0 0 0
Profit before tax 38,189 42,659 36,405 39,588 43,732 48,508
Price Performance Income tax expense 9,017 9,958 9,426 9,761 10,717 11,897
6000 Minorities 9,820 10,556 8,947 9,710 10,380 11,562
Other post-tax income/(expense) 0 0 0 0 0 0
4000
Net profit 19,352 22,145 18,032 20,117 22,634 25,049
2000
DB adjustments (including dilution) 40 -38 -68 0 0 0
0 DB Net profit 19,392 22,107 17,964 20,117 22,634 25,049
-2000
Jul '17 Jan '18 Jul '18 Jan '19 Jul '19 Cash Flow (IDRbn)
Telkom Jakarta Comp. Index (Rebased) Cash flow from operations 54,762 53,084 41,024 57,155 57,195 62,880
Net Capex -26,787 -32,294 -31,562 -31,595 -32,845 -33,095
Margin Trends Free cash flow 27,975 20,790 9,462 25,560 24,350 29,785
60
Equity raised/(bought back) 3,090 48 98 0 0 0
Dividends paid -11,213 -11,627 -16,609 -16,229 -18,105 -20,371
50 Net inc/(dec) in borrowings -16,167 -12,068 31,672 18,424 7,246 6,735
Other investing/financing cash flows 0 0 0 0 0 0
40
Net cash flow 3,685 -2,857 24,623 27,754 13,490 16,149
30 Change in working capital 3,875 -232 486 0 0 0
20
16 17 18 19E 20E 21E Balance Sheet (IDRbn)
EBITDA Margin EBIT Margin Cash and other liquid assets 31,238 27,318 18,743 2,410 1,628 3,707
Tangible fixed assets 114,498 130,171 143,248 151,404 158,549 165,806
Growth & Profitibility Goodwill/intangible assets 3,089 3,530 5,032 4,440 3,918 3,457
20 27.5 Associates/investments 1,847 2,148 2,472 2,472 2,472 2,472
Other assets 28,939 35,317 36,701 36,572 38,866 38,623
15 25 Total assets 179,611 198,484 206,196 197,299 205,433 214,064
10 22.5 Interest bearing debt 31,799 35,472 44,087 14,273 14,071 13,869
Other liabilities 42,268 50,882 44,806 44,590 45,365 45,553
5 20 Total liabilities 74,067 86,354 88,893 58,863 59,436 59,422
0 17.5 Shareholders' equity 84,384 92,713 98,910 118,824 125,229 132,173
16 17 18 19E 20E 21E Minorities 21,160 19,417 18,393 19,612 20,768 22,469
Total shareholders' equity 105,544 112,130 117,303 138,436 145,997 154,642
Sales growth (LHS) ROE (RHS) Net debt 561 8,154 25,344 11,862 12,442 10,162
Solvency Key Company Metrics

30 40
Sales growth (%) 13.5 10.2 2.0 5.2 5.2 6.6
20 30 DB EPS growth (%) 23.8 14.0 -18.7 12.0 12.5 10.7
EBITDA Margin (%) 51.1 50.4 45.3 47.3 49.1 49.3
10 20 EBIT Margin (%) 35.2 34.4 28.9 30.2 31.3 32.5
Payout ratio (%) 57.9 52.5 92.1 80.7 80.0 81.3
0 10 ROE (%) 24.3 25.0 18.8 18.5 18.5 19.5
16 17 18 19E 20E 21E Capex/sales (%) 23.0 25.2 24.1 23.0 22.7 21.4
Capex/depreciation (x) 1.4 1.6 1.5 1.3 1.3 1.3
Net debt/equity (LHS) Net interest cover (RHS)
Net debt/equity (%) 0.5 7.3 21.6 8.6 8.5 6.6
Raymond Kosasih, CFA Net interest cover (x) 37.4 33.1 15.2 20.7 28.5 29.7
+62 21 2964 4525 raymond.kosasih@db.com Source: Company data, Deutsche Bank estimates
PT Deutsche Verdhana Sekuritas Indonesia Page 3

2 July 2019
Telecommunications
Model updated: 20 May 2019 Fiscal year end 31-Dec 2016 2017 2018 2019E 2020E 2021E
Asia DB EPS (IDR) 284.76 511.18 150.19 197.69 239.62 293.25
Reported EPS (IDR) 284.76 511.18 150.19 197.69 239.62 293.25
BVPS (IDR) 343.3 681.5 743.8 941.5 1,181.2 1,474.4
Telecommunications
Tower Bersama Enterprise value (IDRbn) 45,587 47,578 46,742 41,812 42,970 43,373
Reuters: TBIG.JK Bloomberg: TBIG IJ
Valuation Metrics
P/E (DB) (x) 20.9 11.9 35.0 19.5 16.1 13.1
Buy P/E (Reported) (x) 20.9 11.9 35.0 19.5 16.1 13.1
P/BV (x) 14.51 9.43 4.84 4.09 3.26 2.61
Price (1 Jul 19) IDR 3,850.0
FCF Yield (%) 6.7 nm nm 5.6 7.0 11.2
Dividend Yield (%) 0.0 3.6 3.2 0.0 0.0 0.0
EV/Sales (x) 12.3 11.8 10.8 8.9 8.6 8.0
52 Week range IDR 3,050 - 5,775 EV/EBITDA (x) 14.2 13.6 12.6 10.3 9.9 9.3
EV/EBIT (x) 15.3 15.8 14.8 12.3 11.7 10.8
USDm 1,308.5 Income Statement (IDRbn)
Sales revenue 3,711 4,023 4,318 4,673 5,005 5,390
TBIG is one of the largest independent tower companies EBITDA 3,220 3,495 3,720 4,044 4,331 4,664
in Indonesia, with tower portfolios extending to Java, Bali, Depreciation 31 36 33 80 85 90
Sumatera and Batam and expanding into Kalimantan and Amortisation 212 446 535 561 561 561
Sulawesi. Services include network planning, land acquisition EBIT 2,978 3,012 3,153 3,403 3,685 4,014
and site licensing, infrastructure design and construction, Net interest income(expense) -1,785 -1,957 -2,063 -2,093 -2,125 -2,140
network installation and project management for tower and Associates/affiliates 0 0 0 0 0 0
DAS, network expansion rollout programs, and ongoing site Exceptionals/extraordinaries 0 0 0 0 0 0
servicing for the term of the lease. Other pre-tax income/(expense) 171 -147 -55 5 0 0
Profit before tax 1,364 908 1,034 1,315 1,560 1,874
Price Performance Income tax expense 63 -1,431 332 390 439 502
10000 Minorities 11 23 22 29 35 43
7500 Other post-tax income/(expense) 0 0 0 0 0 0
Net profit 1,290 2,316 681 896 1,086 1,329
5000
2500 DB adjustments (including dilution) 0 0 0 0 0 0
DB Net profit 1,290 2,316 681 896 1,086 1,329
0
-2500
Jul '17 Jan '18 Jul '18 Jan '19 Jul '19 Cash Flow (IDRbn)
Tower Bersama Jakarta Comp. Index (Rebased) Cash flow from operations 3,163 4,933 3,396 3,680 3,930 4,185
Net Capex -1,360 -21,192 -4,214 -2,695 -2,713 -2,238
Margin Trends Free cash flow 1,803 -16,259 -817 985 1,217 1,947
90
Equity raised/(bought back) 478 2,964 258 0 0 0
Dividends paid 0 -995 -761 0 0 0
85 Net inc/(dec) in borrowings -1 1,828 2,439 2,439 -6 -3
Other investing/financing cash flows -2,210 11,509 -2,066 -1,191 -2,340 -2,307
80
Net cash flow 69 -953 -948 2,233 -1,129 -363
75 Change in working capital 1,124 132 302 1,323 383 416
70
EBITDA Margin EBIT Margin Cash and other liquid assets 365 407 221 2,453 1,324 961
Tangible fixed assets 429 19,799 21,879 23,146 24,417 25,446
Growth & Profitibility Goodwill/intangible assets 534 413 429 429 429 429
12.5 125 Associates/investments 0 0 0 0 0 0
Other assets 22,291 4,977 6,586 7,819 9,308 10,585
10 100
Total assets 23,620 25,596 29,114 33,847 35,478 37,420
7.5 75 Interest bearing debt 18,908 20,380 22,861 25,461 25,455 25,452
5 50 Other liabilities 3,088 2,031 2,573 3,782 4,297 4,872
2.5 25 Total liabilities 21,996 22,411 25,434 29,242 29,752 30,323
0 0 Shareholders' equity 1,556 3,088 3,371 4,266 5,352 6,681
16 17 18 19E 20E 21E Minorities 68 97 309 338 373 416
Sales growth (LHS) ROE (RHS) Net debt 18,543 19,972 22,641 23,007 24,131 24,491

800 1.9
Sales growth (%) 8.5 8.4 7.3 8.2 7.1 7.7
600 1.8 DB EPS growth (%) -4.5 79.5 -70.6 31.6 21.2 22.4
400 1.7 EBITDA Margin (%) 86.8 86.9 86.1 86.5 86.5 86.5
EBIT Margin (%) 80.2 74.9 73.0 72.8 73.6 74.5
200 1.6 Payout ratio (%) 0.0 43.0 111.8 0.0 0.0 0.0
0 1.5 ROE (%) 83.6 99.8 21.1 23.5 22.6 22.1
16 17 18 19E 20E 21E Capex/sales (%) 36.6 526.8 97.6 57.7 54.2 41.5
Capex/depreciation (x) 5.6 43.9 7.4 4.2 4.2 3.4
Net debt/equity (%) nm 627.1 615.3 499.7 421.5 345.1

2 July 2019
Telecommunications
Model updated: 11 April 2019 Fiscal year end 31-Dec 2016 2017 2018 2019E 2020E 2021E
Asia DB EPS (IDR) 68.45 42.67 45.12 50.55 59.29 65.95
Reported EPS (IDR) 68.45 42.67 45.12 50.55 59.29 65.95
BVPS (IDR) 209.9 139.2 157.5 187.5 222.7 260.4
Telecommunications
Sarana Menara Nusantara Enterprise value (IDRbn) 78,351 51,532 40,946 44,395 42,160 40,001
Reuters: TOWR.JK Bloomberg: TOWR IJ
Valuation Metrics
P/E (DB) (x) 20.4 20.6 13.2 13.9 11.9 10.7
Buy P/E (Reported) (x) 20.4 20.6 13.2 13.9 11.9 10.7
P/BV (x) 3.22 5.57 4.38 3.76 3.17 2.71
Price (1 Jul 19) IDR 705.0
FCF Yield (%) 0.9 7.2 0.6 7.0 12.2 12.9
Dividend Yield (%) 0.0 2.2 3.3 2.9 3.4 0.0
EV/Sales (x) 15.5 9.7 7.0 6.9 6.1 5.4
52 Week range IDR 458 - 855 EV/EBITDA (x) 17.8 11.2 8.3 8.1 7.1 6.3
EV/EBIT (x) 17.8 13.6 10.4 9.9 8.7 7.7
USDm 2,548.5 Income Statement (IDRbn)
Sales revenue 5,053 5,338 5,868 6,445 6,951 7,420
Sarana Menara Nusantara (SMN) was established in 2008 with EBITDA 4,408 4,604 4,932 5,491 5,922 6,322
a primary focus to invest in operating companies that specialize Depreciation 0 811 1,008 1,005 1,062 1,088
in owning and operating telecommunication towers. SMN's Amortisation 7 7 5 10 9 10
activities are conducted through its subsidiary, Protelindo. The EBIT 4,401 3,785 3,919 4,477 4,851 5,224
latter was established in 2003 and has become one of the Net interest income(expense) -613 -596 -830 -856 -762 -676
largest independent tower owner and operators in Indonesia. Associates/affiliates 0 0 0 0 0 0
Exceptionals/extraordinaries 0 0 0 0 0 0
Other pre-tax income/(expense) 746 -287 -27 -32 -36 -39
Profit before tax 4,534 2,902 3,062 3,589 4,053 4,508
Price Performance Income tax expense 1,039 726 760 997 1,013 1,127
1000 Minorities 3 0 0 13 15 17
750 Other post-tax income/(expense) 0 0 0 0 0 0
500 Net profit 3,492 2,177 2,302 2,579 3,024 3,364
250 DB adjustments (including dilution) 0 0 0 0 0 0
0 DB Net profit 3,492 2,177 2,302 2,579 3,024 3,364
-250
Jul '17 Jan '18 Jul '18 Jan '19 Jul '19
Cash Flow (IDRbn)
Sarana Menara Nusantara
Jakarta Comp. Index (Rebased) Cash flow from operations 3,425 3,969 4,214 4,504 4,926 5,220
Net Capex -2,761 -741 -4,046 -1,972 -548 -563
Margin Trends Free cash flow 664 3,228 168 2,533 4,379 4,657
90
Equity raised/(bought back) -12 48 -70 0 0 0
Dividends paid 0 -1,006 -1,000 -1,048 -1,228 -1,440
Net inc/(dec) in borrowings 2,749 11 -1,266 -1,140 -1,026 -923
80
Other investing/financing cash flows -3,483 -2,838 783 531 -901 -1,041
Net cash flow -82 -557 -1,385 877 1,224 1,253
70
Change in working capital 113 -203 12 6 0 0
60
EBITDA Margin EBIT Margin Cash and other liquid assets 2,905 2,348 963 1,840 3,064 4,318
Tangible fixed assets 18,508 12,601 15,980 16,947 16,433 15,908
Growth & Profitibility Goodwill/intangible assets 819 742 1,193 1,193 1,193 1,193
20 40 Associates/investments 0 0 0 0 0 0
Other assets 2,793 3,072 4,823 3,823 3,994 4,373
15 35 Total assets 25,025 18,763 22,960 23,803 24,684 25,791
10 30 Interest bearing debt 9,919 8,999 11,627 10,257 9,231 8,308
Other liabilities 4,398 2,663 3,300 3,969 4,063 4,153
5 25 Total liabilities 14,317 11,662 14,926 14,226 13,295 12,461
0 20 Shareholders' equity 10,708 7,102 8,033 9,565 11,361 13,285
16 17 18 19E 20E 21E Minorities 0 0 0 13 28 45
Sales growth (LHS) ROE (RHS) Net debt 7,014 6,650 10,663 8,416 6,167 3,990

200 8
Sales growth (%) 13.1 5.6 9.9 9.8 7.8 6.7
150 7 DB EPS growth (%) 18.0 -37.7 5.7 12.0 17.3 11.2
100 6 EBITDA Margin (%) 87.2 86.2 84.0 85.2 85.2 85.2
EBIT Margin (%) 87.1 70.9 66.8 69.5 69.8 70.4
50 5 Payout ratio (%) 0.0 46.2 43.4 40.6 40.6 0.0
0 4 ROE (%) 38.0 24.4 30.4 29.3 28.9 27.3
16 17 18 19E 20E 21E Capex/sales (%) 76.5 13.9 69.0 30.6 7.9 7.6
Capex/depreciation (x) nm 0.9 4.0 1.9 0.5 0.5
Net debt/equity (%) 65.5 93.6 132.7 87.9 54.1 29.9

2 July 2019
Telecommunications
Appendix 1
Important Disclosures
*Other information available upon request
Disclosure checklist
Company Ticker Recent price* Disclosure
Sarana Menara Nusantara TOWR.JK 705.0 (IDR) 01 Jul 2019 11
Telkom TLKM.JK 4220.0 (IDR) 01 Jul 2019 7, 11, 14
Tower Bersama TBIG.JK 3850.0 (IDR) 01 Jul 2019 11, 14
*Prices are current as of the end of the previous trading session unless otherwise indicated and are sourced from local exchanges via Reuters, Bloomberg and other vendors . Other
information is sourced from Deutsche Bank, subject companies, and other sources. For disclosures pertaining to recommendations or estimates made on securities other than the primary
subject of this research, please see the most recently published company report or visit our global disclosure look-up page on our website at https://research.db.com/Research/Disclosures/
CompanySearch. Aside from within this report, important risk and conflict disclosures can also be found at https://research.db.com/Research/Topics/Equities?topicId=RB0002. Investors
are strongly encouraged to review this information before investing.
Important Disclosures Required by U.S. Regulators

Disclosures marked with an asterisk may also be required by at least one jurisdiction in addition to the United States.See
Important Disclosures Required by Non-US Regulators and Explanatory Notes.
7. Deutsche Bank and/or its affiliate(s) has received compensation from this company for the provision of investment
banking or financial advisory services within the past year.
14. Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company
within the past year.
Important Disclosures Required by Non-U.S. Regulators

Disclosures marked with an asterisk may also be required by at least one jurisdiction in addition to the United States.See
Important Disclosures Required by Non-US Regulators and Explanatory Notes.
7. Deutsche Bank and/or its affiliate(s) has received compensation from this company for the provision of investment
banking or financial advisory services within the past year.
Special Disclosures
11. PT Deutsche Verdhana Sekuritas Indonesia Analyst(s) do not receive any direct compensation for their
recommendation or views but may receive compensation based on the profitability of PT Deutsche Verdhana
Sekuritas Indonesia.
For disclosures pertaining to recommendations or estimates made on securities other than the primary subject of this
research, please see the most recently published company report or visit our global disclosure look-up page on our website
at https://research.db.com/Research/Disclosures/CompanySearch
Analyst Certification
The views expressed in this report accurately reflect the personal views of the undersigned lead analyst about the subject
issuers and the securities of those issuers. In addition, the undersigned lead analyst has not and will not receive any
compensation for providing a specific recommendation or view in this report. Raymond Kosasih.

2 July 2019
Telecommunications
Historical recommendations and target price: Tower Bersama (TBIG.JK)

(as of 07/01/2019)
10000.00 Current Recommendations
Buy
Hold
8000.00 Sell
Not Rated
1 Suspended Rating
Security price
6000.00 2 3 ** Analyst is no longer at

Deutsche Bank
4 5
4000.00
2000.00
0.00
Sep '17 Jan '18 May '18 Sep '18 Jan '19 May '19
Date
1. 08/25/2017 Buy, Target Price Change IDR 8300.00 Raymond 4. 12/14/2018 Buy, Target Price Change IDR 6650.00 Raymond
Kosasih, CFA Kosasih, CFA
3. 09/12/2018 Buy, Target Price Change IDR 7000.00 Raymond
Kosasih, CFA
§§§§$$$$$§§§§§
Historical recommendations and target price: Telkom (TLKM.JK)

(as of 07/01/2019)
Buy
Hold
5000.00 1 Sell
Not Rated
2
6 Suspended Rating
4000.00 5
Security price
3 4
** Analyst is no longer at
Deutsche Bank
3000.00
2000.00
1000.00
0.00
Date
§§§§$$$$$§§§§§

2 July 2019
Telecommunications
Historical recommendations and target price: Sarana Menara Nusantara (TOWR.JK)

(as of 07/01/2019)
Buy
Hold
5000.00 Sell
1 Not Rated
Suspended Rating
4000.00
Security price
** Analyst is no longer at
Deutsche Bank
3000.00 2
2000.00
1000.00 3 5 6 7 8
4
0.00
Date
1. 10/20/2017 Hold, Target Price Change IDR 4200.00 Raymond 5. 12/20/2018 Buy, Target Price Change IDR 800.00 Raymond
2. 06/01/2018 Upgraded to Buy, Target Price Change IDR 4200.00 6. 01/18/2019 Buy, Target Price Change IDR 900.00 Raymond
Raymond Kosasih, CFA Kosasih, CFA
§§§§$$$$$§§§§§
Equity Rating Key Equity rating dispersion and banking relationships
Buy: Based on a current 12- month view of total share-holder

return (TSR = percentage change in share price from current
price to projected target price plus pro-jected dividend yield ) ,
we recommend that investors buy the stock.
Sell: Based on a current 12-month view of total share-holder
return, we recommend that investors sell the stock.
Hold: We take a neutral view on the stock 12-months out and,
based on this time horizon, do not recommend either a Buy or
Sell.
Newly issued research recommendations and target prices

supersede previously published research.

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David Folkerts-Landau
Group Chief Economist and Global Head of Research
Pam Finelli Michael Spencer Steve Pollard

Global Chief Operating Officer Head of APAC Research Head of Americas Research
Research Global Head of Equity Research
Anthony Klarman Kinner Lakhani Joe Liew

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Debt Research Equity Research Equity Research
Jim Reid Francis Yared George Saravelos Peter Hooper

Global Head of Global Head of Rates Research Head of FX Research Global Head of
Thematic Research Economic Research
Andreas Neubauer Spyros Mesomeris

Head of Germany Research Global Head of Quantitative
and QIS Research
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of more than US$2bn, which could be used to pay a special dividend.

Given the above factors, we visualise a win-win-win scenario. Hence, we maintain

Valuations and risks

Page 2 PT Deutsche Verdhana Sekuritas Indonesia

Solvency Key Company Metrics

PT Deutsche Verdhana Sekuritas Indonesia Page 3

Solvency Key Company Metrics

Page 4 PT Deutsche Verdhana Sekuritas Indonesia

Solvency Key Company Metrics

PT Deutsche Verdhana Sekuritas Indonesia Page 5

Important Disclosures Required by U.S. Regulators

Important Disclosures Required by Non-U.S. Regulators

Page 6 PT Deutsche Verdhana Sekuritas Indonesia

Historical recommendations and target price: Tower Bersama (TBIG.JK)

6000.00 2 3 ** Analyst is no longer at

Historical recommendations and target price: Telkom (TLKM.JK)

PT Deutsche Verdhana Sekuritas Indonesia Page 7

Historical recommendations and target price: Sarana Menara Nusantara (TOWR.JK)

Equity Rating Key Equity rating dispersion and banking relationships

Buy: Based on a current 12- month view of total share-holder

Newly issued research recommendations and target prices

Page 8 PT Deutsche Verdhana Sekuritas Indonesia

PT Deutsche Verdhana Sekuritas Indonesia Page 9

Page 10 PT Deutsche Verdhana Sekuritas Indonesia

Korea: Distributed by Deutsche Securities Korea Co.

PT Deutsche Verdhana Sekuritas Indonesia Page 11

Page 12 PT Deutsche Verdhana Sekuritas Indonesia

Pam Finelli Michael Spencer Steve Pollard

Anthony Klarman Kinner Lakhani Joe Liew

Jim Reid Francis Yared George Saravelos Peter Hooper

Andreas Neubauer Spyros Mesomeris

International Production Locations

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