Intiland Development. Exhibit 1 : Financial Highlights. Source : DILD, Ciptadana Estimates

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1 BUY TP: Rp520 (+25.0%) Sector Bloomberg Ticker Share Price Performance Property DILD IJ Last price (Rp) 416 Avg. daily T/O (Rpbn/USDmn) 2.6/0.2 3m 6m 12m Absolute (%) Relative to JCI (%) w High/Low price (Rp) 640/ Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 DILD Outstanding shrs (mn) 10,366 Mkt. Cap (Rpbn/USDmn) 4,312/323 Estimated free float (%) 83.5 Major shareholders UOB AG/ Singapore 22.2% Credit Suiss Singapore 16.5% Dimensional Fund Advisors LP 2.9% EPS Consensus Ciptadana Cons. % Diff 2017F F F Yasmin Soulisa ext. 799 soulisayasmin@ciptadana.com 5% 0% -5% -10% -15% -20% -25% -30% -35% -40% -45% 1yr Rel. to JCI (RHS) Intiland Development Strong 2017 pre-sales from high-end residential and Surabaya industrial park The 57 Promenade delivers Rp1.6 tn of marketing sales Intiland Development (DILD) kicks off the 2H17 with the launching of 57 Promenade, a 3.2 ha mixed use and high rise development located in the Jakarta CBD. The company claimed had booked Rp1.6 tn of marketing sales generated from 302 units apartments sold out of 320 units available in the two towers on the 1 st phase of the development, named the City 57 and Sky 57. The high-end residential project boasts ASP of around Rp50 mn/sqm and consists of studio apartments, 2 bed room (BR) apartments, and 3-BR apartments. The construction of City 57 and Sky 57 is expected to finish by 2022 or 4 years from ground breaking, projected by 1Q18. Before 57 Promenade, Surabaya has been the engine of growth Company s property sales in Surabaya has been supporting DILD s total marketing sales in the last 5 years with CAGR of 15% in , while Jakarta s property sales was somewhat unsatisfactory with 5-year CAGR of -15% from Rp1,081 bn in 2012 to Rp559 bn by 2016 (see Exhibit 5). In 1H17, Surabaya has generated Rp663 bn of pre-sales vs. Rp256 bn from Jakarta properties. However with Rp1.6 tn pouring in from 57 Promenade launching in Aug-17, the proportion from Surabaya would change drastically from currently 72% (see Exhibit 6) to just about 26% of total pre-sales. The flip could benefit the company as Jakarta property price is expected to improve by 3Q17 (see Exhibit 7 ) compared to Surabaya which grew at faster pace last year but shown a shrinking trend since the beginning of Benefited from strong block sales in 2017 with land bank more than 2,100 ha DILD sold 20.3 ha of land in Ngoro Industrial Park (NIP) Surabaya in 2Q17 to Toyota Astra Motor with transaction valued at Rp386 bn. In 1H17, NIP s land sales amounted to Rp531 bn, beyond than initial target of Rp185 bn or 10 ha area to be sold this year. As of end of Jun-17, Ngoro II still has land bank of around 77.2 ha, hence will sustain more than 7 years assuming the company is back to original plan of 10 ha to be sold annually. The next phase of development is expected to be seen in Maja, Greater Jakarta, as the company is banking around 1,083 ha of land or 51% of DILD s total land bank. Around 78% of company s land bank is located in Greater Jakarta occupying area of 1,661 ha while the rest 477 ha is strategically located in Surabaya city. Reinitiate coverage with a BUY and TP of Rp520 The stock is currently trading at 72% discount to our RNAV/share of Rp1,473. It is also trading at 14.8x 2018F PE, slightly higher than its mean 5-year forward PE of 14.3x (see Exhibit 8). With this note, we reinstate our coverage on DILD with new RNAV calculation, incorporating lower assumption of ASPs and higher discount. We have TP to Rp520 which is based on 65% discount to RNAV. As our TP offers 25% upside potential, the stock is rated a Buy. Exhibit 1 : Financial Highlights Year to 31 Dec 2015A 2016A 2017F 2018F 2019F Revenue (Rpbn) 2,201 2,276 2,387 2,364 2,615 Operating profit (Rpbn) Net profit (Rpbn) EPS (Rp) EPS growth (%) EV/EBITDA (x) PER (x) PBV (x) Dividend yield (%) ROE (%) Please see analyst certification and other important disclosures at the back of this report 2

2 Exhibit 2 : RNAV calculation (Rp bn) Total properti value 19,703 Cash as of Dec 18 1,957 Net advances as of Dec Debt as of Debt 18 5,826 RNAV 15,266 Outstanding shares (bn) 10 RNAV/share (Rp) 1,473 Discount to RNAV 65% Target Price (Rp) 520 Source : Ciptadana Estimates Please see analyst certification and other important disclosures at the back of this report 3

3 Exhibit 3 : DILD quarterly marketing sales Exhibit 4 : DILD 1H17 revenue contribution Industrial estate Landed residential Mixed use & high rise (Rp bn) 2,370 2,360 Investment properties 17% Mixed use & high rise 21% 1,619 1, Industrial estate 48% Landed residential 15% H16 1H17 Source : DILD Exhibit 5 : DILD marketing sales breakdown by location Exhibit 6 : DILD marketing sales contribution by percentage Surabaya Jakarta Surabaya Jakarta (Rp bn) 1,587 1,690 1,012 71% 67% 72% 38% 42% 36% 28% 1, % 58% 64% 72% % 33% 28% H16 1H17 Source: DILD, Ciptadana Estimates Source: DILD, Ciptadana Estimates Exhibit 7 : Residential property price index growth (%, yoy) Exhibit 8 : DILD forward PE band Surabaya Greater Jakarta stdev 8.1x -1 stdev 11.2x avg 14.3x +1st dev 17.5x +2 stdev 20.6x P/E Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17* 5 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Source : BI Source: DILD, Bloomberg, Ciptadana Estimates Please see analyst certification and other important disclosures at the back of this report 4

4 Exhibit 9 : Income Statement Year to 31 Dec (Rpbn) 2015A 2016A 2017F 2018F 2019F Revenue 2,201 2,276 2,387 2,364 2,615 COGS -1,158-1,240-1,207-1,188-1,363 Gross profit 1,043 1,036 1,180 1,176 1,252 Oper. expenses Oper. profit EBITDA Interest income Interest expense Other income (exp.) Pre-tax profit Income tax Minority interest Net profit Exhibit 10 : Balance Sheet Year to 31 Dec (Rpbn) 2015A 2016A 2017F 2018F 2019F Cash & cash equivalent ,279 1,957 2,384 Acct, receivables Inventory 2,013 2,067 1,530 1,726 2,199 Other curr, asset Total current asset 2,926 3,034 3,276 4,143 5,101 Fixed assets - net 1,343 1,852 2,039 2,226 2,413 Other non-curr.asset 5,758 6,697 7,152 7,369 8,038 Total asset 10,289 11,840 12,719 13,990 15,806 ST debt + curr. maturity 1,722 1,780 2,110 2,527 3,017 Acct, payable Advances received , ,099 Other curr. liab Long term debt 1,478 2,675 3,209 3,710 4,219 Other non-curr, liab, Total liabilities 5,518 6,783 7,403 8,398 9,754 Shareholder equity 4,682 4,980 5,237 5,431 5,562 Minority interest Total liab + SHE 10,289 11,840 12,719 13,990 15,806 Exhibit 11 : Per Share Data (Rp) 2015A 2016A 2017F 2018F 2019F EPS BVPS DPS FCF per share Please see analyst certification and other important disclosures at the back of this report 5

5 Exhibit 12 : Cash Flow Year to 31 Dec (Rpbn) 2015A 2016A 2017F 2018F 2019F Net income Depreciation Chg in working cap Other -1,811-1,340 1, CF-Oper activities -1, , Capital expenditure Others CF-Investing activities Net change in debt Net change in equity Dividend payment Other financing CF-Financing activities 913 1, Net cash flow Cash - begin of the year ,279 1,957 Cash - end of the year ,279 1,957 2,384 Exhibit 13 : Key Ratios Year to 31 Dec 2015A 2016A 2017F 2018F 2019F Growth Revenue (%) Operating profit (%) Net profit (%) Profitability Ratios Gross margin (%) Operating margin (%) EBITDA margin (%) Net margin (%) ROA (%) ROE (%) Liquidity Ratios Current ratio (x) Quick ratio (x) Cash conversion cycle (days) Activity Ratio Inventory turnover (days) Receivable turnover (days) Payable turnover (days) Solvency Ratio Interest cover (x) Debt to equity ratio (x) Net debt to equity (x) Please see analyst certification and other important disclosures at the back of this report 6

6 HEAD OF RESEARCH ANALYST ANALYST Arief Budiman Erni Marsella Siahaan, CFA Yasmin Soulisa Strategy, Automotive, Heavy Equipment, Banking Property, Plantations Construction, Shipping T ext 919 T ext 799 T ext 819 E siahaanerni@ciptadana.com E soulisayasmin@ciptadana.com E budimanarief@ciptadana.com ANALYST ANALYST ANALYST KurniawanSudjatmiko Nichelle Ongko Niko Margaronis Coal, Metal Mining, Oil & Gas and Services Media, Retail, Others Telecommunication, Tower, Healthcare T ext 739 T ext 740 T ext 734 E sudjatmikokurniawan@ciptadana.com E ongkonichelle@ciptadana.com E margaronisniko@ciptadana.com JUNIOR ECONOMIST TECHNICAL ANALYST RESEARCHASSISTANT Imanuel Reinaldo Trevor Gasman Sumarni T ext 820 T ext 934 T ext 920 E reinaldoimanuel@ciptadana.com E gasmantrevor@ciptadana.com E sumarni@ciptadana.com EQUITY SALES Co HEAD OF INSTITUTIONAL SALES Dadang Mulyana Plaza ASIA Office Park unit 2 Plaza ASIA Office Park unit 2 Jl. Jend. Sudirman Kav. 59 Jl. Jend. Sudirman Kav. 59 Jakarta Jakarta T ext 838 T ext 807 Co HEAD OF INSTITUTIONAL SALES The Fei Ming F F E mulyanadadang@ciptadana.com E thefeiming@ciptadana.com BRANCH OFFICES JAKARTA - MANGGA DUA JAKARTA - PURI KENCANA SURABAYA Komplek Harco Mangga Dua Perkantoran Puri Niaga III Intiland Tower Surabaya Rukan Blok C No.10 Jl. Puri Kencana Blok M8 No.2E Ground Floor Suite 5 & 6 Jl. Mangga Dua Raya Kembangan Jl. Panglima Sudirman Jakarta Jakarta Surabaya T T T F F F SEMARANG Gedung Menara Suara Merdeka 6th Floor Unit 02 Jl. Pandanaran No.30 Semarang T F Please see analyst certification and other important disclosures at the back of this report 7

7 Analyst Certification Each contributor to this report hereby certifies that all the views expressed accurately reflect his or her personal views about the companies, securities and all pertinent variables. It is also certified that the views and recommendations contained in this report are not and will not be influenced by any part or all of his or her compensation. Disclaimer This report does not constitute an offer to buy or sell any security/instrument, invitation to offer or recommendation to enter into any transaction. Nor are we acting in any other capacity as a fiduciary to you. When making and investment decision, you should determine, without reliance upon us or our affiliates, the economic risks and merits (and independently determine that you are able to assume these risks) as well as the legal, tax and accounting characterizations and consequences of any such transaction. In this regard, by accepting this report, you acknowledge that (a) we are not in the business of providing (and you are not relying on us for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks associated with any transaction, (c) you should receive (and rely on) separate and qualified legal, tax and accounting advice and (d) you should apprise senior management in your organization as to such legal, tax and accounting advice (and any risks associated with any transaction and our disclaimer as to these matters. The information contained in this report is based on material we believe to be reliable; however, we do not represent that it is accurate, current, complete, or error free. Assumptions, estimates and opinions contained in this report constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results. PT CIPTADANA SECURITIES AND ITS AFFILIATES SPECIFICALLY DISCLAIMS ALL LIABILITY FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL OR OTHER LOSSES OR DAMAGES INCLUDING LOSS OF PROFITS INCURRED BY YOU OR ANY THIRD PARTY THAT MAY ARISE FROM ANY RELIANCE ON THIS REPORT OR FOR THE RELIABILITY, ACCURACY, COMPLETENESS OR TIMELINESS THEREOF. Disclaimer: This document is not intended to be an offer, or a solicitation of an offer, to buy or sell relevant securities (i.e. securities mentioned herein or of the same issuer and options, warrants or rights to or interest in any such securities). The information and opinions contained in this document have been compiled from or arrived at in good faith from sources believed to be reliable. No representation or warranty, expressed or implied, is made by PT CIPTADANA SECURITIES or any other member of the Ciptadana Capital, including any other member of the Ciptadana Group of Companies from whom this document may be received, as to the accuracy or completeness of the information contained herein. All opinions and estimates in this report constitute our judgment as of this date and there can be no assurance that future results or events will be consistent with any such opinions, forecasts or estimates. The information in this document is subject to change without notice; its accuracy is not guaranteed; and it may be incomplete or condensed. Please see analyst certification and other important disclosures at the back of this report 8