DISCUSSION NOTE : PT Intermedia Capital, Tbk1. Background

The Company is domiciled in South Jakarta, was established in 25 February 2008 and began commercial operations in 2009 as the holding company of broadcasters , namely ANTV , which is part of a media group VIVA(PT Visi Media Asia, Tbk) .As a media group VIVA , the company implements three pillar strategy ,which targets a specific ( micro- targeting), costs low to high yield (low cost high impact) and provide memorable experience for the audience (innovative customer experience).ANTV is focusing on delivering families content, children and entertainment by offering programs reality shows, variety shows,comedy,animation, national and international film and documentarythrough FTA TV. Currently 68% of ANTV content produced in-house. Partiallycontent can also be accessed through the portal viva.co.id , and other platforms. Currently, the company has one (1) direct subsidiaries , namely ANTV and 9 indirect subsidiaries in the field of broadcasting in several regions in Indonesia.2. Shareholders

3. Intermedia and its IndustryMedia industry in Indonesia is driven by domestic consumption and an industry with the fastest growth rate in Asia Pacific. In 2010 Indonesia reached highest net revenue growth for the field of advertising in Asia, which grew 19.5%. Media Partners Asia predicts net advertising revenue in Indonesia will grow at an average growth rate of 11.8% for five years. In 2010, the television contributed 68% of total media advertising expenditure net. The dominance of television is due to the popularity of television networks FTA (free to water) which has a market share of 66% of the total market net advertising industry in 2010. Industry FTA covers approximately 56% of the total number of households in the Indonesia.FTA audiences shares in Indonesia:

Gross advertising shares:

Based on audience share in 2010, it appears that the group has a share MNCN the largest audience that is 36.4%, followed by 24.1% Trans Group, EMTK 15.5% and 11.5% Viva. Based on gross advertising share in 2010 was also dominated group MNCN at 36.8%, followed by 22.7% Trans group, Viva 15.3% and EMTK 13.9%. 4.Competitors

PT Media Nusantara Citra, TbkPT Media Nusantara Citra Tbk (MNC), based in Indonesia, offers integrated media services. The company operates in four business division namely Advertisement, Content, Value Added Services and Others. MNC owns and operates RCTI, TPI and Global TV, national television networks. The company is engaged in content production for movies, drama series, reality shows situational comedies and TV films. It has a content library of approximately 68,000 hours of programming. It also operates in newspaper and magazine publising. It publishes a daily newspaper, Koran Sindo, which focuses on news, business, lifestyle and sports. It also publishes a weekly tabloid, Genie, which is an infotainment paper and focuses on lifestyle and celebrity gossip. The company publishes High End, a lifestyle magazine, and High End Teen, a lifestyle magazine for teenagers. The company operates and manages 18 radio networks under the Trijaya FM, ARH Global, Radio Dangdut TPI and Women Radio brands. It has partnerships with 8 radio stations in Indonesia. MNC offers online media services through its okezone.com web portal, which provides news and other content. The company offers talent management services for TV and radio presenters, talk-show hosts, drama series actors, singers, musicians, comedians and other performers. PT Media Nusantara Citra Tbk launched mobile content services in cooperation with PT Trikomsel Oke, a wireless communication products and gadgets retailer. Its portfolio of services includes Dunia Mobie KD, Mobile Content Sinemart, Mobile Content Linktone, Mobile Content Indonesian IDOL and Mobile Content KDI.

MNC's revenue grew 4% year-on-year in 2013, while its reported EBITDA rose 15%, owing to the 7% growth in advertising revenue and an increase in its share of prime-time viewers. MNC has maintained its leading position in Indonesia's growing free-to-air TV market, with a local prime-time audience share of about 40% compared with 38% at end-2012. However, MNC TV's local prime-time audience share contracted by 3% to 12.2% in 2013 from 15.2% in 2012. In addition, advertising revenue for MNC TV has slowed due to media coverage of the legal dispute related to MNC's ownership of MNC TV. Nonetheless, MNC's reported EBITDA margin improved to 42% in 2013 from 38% in 2012, primarily due to lower programming costs. PT Global Mediacom Tbk owns 69.47% of PT Media Nusantara Citra Tbk. It is currently traded at PE of 23.2xPT Surya Citra Media, TbkPT Surya Citra Media Tbk was formed on 29 January 1999 to operate as a holding company for multimedia services as well as consultancy services in the media and related business. The main purpose behind its creation, however, was to broaden the horizons of PT Surya Citra Televisi (SCTV), one of the largest TV broadcasting stations in Indonesia, today. As a media broadcasting company, SCTV is restricted by law to operate solely and exclusively as a broadcasting company for which it was licenced for. Hence, the establishment of SCM signified the emergence of a highly prospective multimedia group with longterm growth opportunities. SCM subsequently acquired 100% share of SCTV over a period of time between November 2001 and April 2002, and went public in July 2002. Based on Nielsen Audience Measurement, on the prime time

(from 18:00 to 22:30) for the ABC audience, combined audience

share of SCTV (FTA of SCMA) and Indosiar as of 13 March stood

at 21.8%, versus 23.7% in 2012 and 25.9% in 2011. In May 2013, SCTV mergered with Indosiar. However, this merger made 2013 profit margin of SCTV declined.

It is currently traded at PE of 37.4x5.Initial Public OfferingPT Intermedia Capital, Tbk is going for IPO in 11 April 2014. Below are the listing statistics.

Industry : MediaSub-industry : TelevisionIPO Price : IDR 1,380Percent of Enlarged Capital : 10%Shares Offered : 392.12 millionDeal size : Approx. IDR 541.1 billion Use of Proceeds :

1. Approximately 10% is used to pay Debt to VIVA. 2. Approximately 80% will be used for capital expenditure related business development and / or investment new strategic value for the development of the business through acquisitions and the formation of new units in the field media and broadcasting, program development, studio construction, purchase of equipment production, transmission and purchase broadcasting equipment.

3. Approximately 10% will be used for working capital Underwriter : PT Danatama MakmurPT Ciptadana Securities

6.Financials

IDR billionFY2010FY2011FY2012

Revenue 7,742 9,905 11,885

Gross profit 763 958 1,322

GP % 9.86 9.67 11.12

NPAT 355 476 570

NPAT % 4.59 4.81 4.8

IDR$ billionFY2010FY2011FY2012

Non current assets 359 461 603

Current assets 413 697 543

Total assets 772 1,158 1,146

Current liabilities

197 186 232

Non current liabilities 207 451 349

Total liabilities 404 636 581

Equity 368 522 655

Total liabilities and equity 772 1,158 1,146