PT Waskita Karya (Persero) Tbk (WSKT) is Indonesia's largest toll road construction company. It builds and operates toll roads as well as produces precast concrete. WSKT generates most of its revenue from construction but also earns income from toll road operations and building rentals. The company is expanding its precast manufacturing capacity and plans an IPO to raise funds for this division. WSKT is 66% state-owned and benefits from government infrastructure spending focused on building more toll roads.

1. Presented by: Dr. Andrew Stotz, CFA
Waskita Karya

2. 226 August 2016
Background: PT Waskita Karya (Persero) Tbk is Indonesia’s largest
toll road construction company by revenue, and is a 66% state-
owned enterprise (SOE). It is a general contractor, and builds and
operates toll roads. It is also the second largest manufacturer by
volume of precast concrete, which is mainly used in domestic toll
road construction.
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Revenue breakdown, by segment 2015
Stock information:
Name: PT Waskita Karya
(Persero) Tbk Class B
Ticker: WSKT IJ
Price (IDR): 2,790
Mcap: US$2,860m
3MADTO: US$9m
Beta: 0.6x
Sector: Industrials
Industry: Capital Goods
Major shareholders:
66% Government of Indonesia
3% PT Schroder Investment
Management Indonesia
31% Free float
PT Waskita Karya (Persero) Tbk
 WSKT is a state-owned enterprise (SOE) and the largest builder of toll roads in Indonesia
by revenue. It also has the second largest production capacity for precast concrete in
Indonesia
 Public spending is being focused on infrastructure, with further plans for more toll roads
to be built through to at least 2018. The government plans to merge its SOE companies so
that in the future WSKT is likely to become a subsidiary of a larger group, giving it more
negotiating ability to get an even greater share of road building and operations
 Precast concrete accounts for around 15% of total revenue, while the rest is largely
general construction for both the public and private sector, and some building leasing
income
 Apart from building toll roads WSKT generates income from operating them as well as
from building rentals, which in 1Q16 accounted for about 1% of revenue
 WSKT is aggressively expanding its precast manufacturing, now producing 1.8m tons
annually, an IPO is planned for 4Q16 to raise funds
Construction 85.2% Precast 14.6% Income from toll roads
and building rentals 0.2%
50
150
250
350
450
-
500
1,000
1,500
2,000
2,500
3,000
Aug-13 May-14 Feb-15 Nov-15 Aug-16
WSKT IJ (LHS)
Price relative to local index
(IDR) (%)

3. 326 August 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Background: PT Waskita Karya (Persero) Tbk is Indonesia’s
largest toll road construction company by revenue, and is
a 66% state-owned enterprise (SOE).
It is a general contractor, and builds and operates toll
roads.
It is also the second largest manufacturer by volume of
precast concrete, which is mainly used in domestic toll
road construction.
PT Waskita Karya (Persero) Tbk

4. 426 August 2016
50
150
250
350
450
-
500
1,000
1,500
2,000
2,500
3,000
Aug-13 May-14 Feb-15 Nov-15 Aug-16
WSKT IJ (LHS)
Price relative to local index
(IDR) (%)
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Stock information:
Name: PT Waskita Karya (Persero)
Tbk Class B
Ticker: WSKT IJ
Price (IDR): 2,790
Mcap: US$2,860m
3MADTO: US$9m
Beta: 0.6x
Sector: Industrials
Industry: Capital Goods
Major shareholders:
66% Government of Indonesia
3% PT Schroder Investment
Management Indonesia
31% Free float
PT Waskita Karya (Persero) Tbk

5. 526 August 2016
Background: PT Waskita Karya (Persero) Tbk is Indonesia’s largest
toll road construction company by revenue, and is a 66% state-
owned enterprise (SOE). It is a general contractor, and builds and
operates toll roads. It is also the second largest manufacturer by
volume of precast concrete, which is mainly used in domestic toll
road construction.
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Revenue breakdown, by segment 2015
Stock information:
Name: PT Waskita Karya
(Persero) Tbk Class B
Ticker: WSKT IJ
Price (IDR): 2,790
Mcap: US$2,860m
3MADTO: US$9m
Beta: 0.6x
Sector: Industrials
Industry: Capital Goods
Major shareholders:
66% Government of Indonesia
3% PT Schroder Investment
Management Indonesia
31% Free float
PT Waskita Karya (Persero) Tbk
 WSKT is a state-owned enterprise (SOE) and the largest builder of toll roads in Indonesia
by revenue. It also has the second largest production capacity for precast concrete in
Indonesia
 Public spending is being focused on infrastructure, with further plans for more toll roads
to be built through to at least 2018. The government plans to merge its SOE companies so
that in the future WSKT is likely to become a subsidiary of a larger group, giving it more
negotiating ability to get an even greater share of road building and operations
 Precast concrete accounts for around 15% of total revenue, while the rest is largely
general construction for both the public and private sector, and some building leasing
income
 Apart from building toll roads WSKT generates income from operating them as well as
from building rentals, which in 1Q16 accounted for about 1% of revenue
 WSKT is aggressively expanding its precast manufacturing, now producing 1.8m tons
annually, an IPO is planned for 4Q16 to raise funds
Construction 85.2% Precast 14.6% Income from toll roads
and building rentals 0.2%
50
150
250
350
450
-
500
1,000
1,500
2,000
2,500
3,000
Aug-13 May-14 Feb-15 Nov-15 Aug-16
WSKT IJ (LHS)
Price relative to local index
(IDR) (%)

6. 626 August 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 WSKT is a state-owned enterprise (SOE) and the
largest builder of toll roads in Indonesia by
revenue
 It also has the second largest production capacity
for precast concrete in Indonesia
PT Waskita Karya (Persero) Tbk

7. 726 August 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 Public spending is being focused on
infrastructure, with further plans for more toll
roads to be built through to at least 2018
 The government plans to merge its SOE
companies so that in the future WSKT is likely to
become a subsidiary of a larger group,
 giving it more negotiating ability to get an even
greater share of road building and operations
PT Waskita Karya (Persero) Tbk

8. 826 August 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 Precast concrete accounts for around 15% of
total revenue, while the rest is largely general
construction for both the public and private
sector, and some building leasing income
PT Waskita Karya (Persero) Tbk

9. 926 August 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 Apart from building toll roads WSKT generates
income from operating them as well as from
building rentals, but in 1Q16 accounted for less
than 1% of revenue
PT Waskita Karya (Persero) Tbk

10. 1026 August 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 WSKT is aggressively expanding its precast
manufacturing, now producing 1.8m tons
annually, an IPO to raise funds for this division is
planned for 4Q16
PT Waskita Karya (Persero) Tbk

11. 1126 August 2016
Background: PT Waskita Karya (Persero) Tbk is Indonesia’s largest
toll road construction company by revenue, and is a 66% state-
owned enterprise (SOE). It is a general contractor, and builds and
operates toll roads. It is also the second largest manufacturer by
volume of precast concrete, which is mainly used in domestic toll
road construction.
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Revenue breakdown, by segment 2015
Stock information:
Name: PT Waskita Karya
(Persero) Tbk Class B
Ticker: WSKT IJ
Price (IDR): 2,790
Mcap: US$2,860m
3MADTO: US$9m
Beta: 0.6x
Sector: Industrials
Industry: Capital Goods
Major shareholders:
66% Government of Indonesia
3% PT Schroder Investment
Management Indonesia
31% Free float
PT Waskita Karya (Persero) Tbk
 WSKT is a state-owned enterprise (SOE) and the largest builder of toll roads in Indonesia
by revenue. It also has the second largest production capacity for precast concrete in
Indonesia
 Public spending is being focused on infrastructure, with further plans for more toll roads
to be built through to at least 2018. The government plans to merge its SOE companies so
that in the future WSKT is likely to become a subsidiary of a larger group, giving it more
negotiating ability to get an even greater share of road building and operations
 Precast concrete accounts for around 15% of total revenue, while the rest is largely
general construction for both the public and private sector, and some building leasing
income
 Apart from building toll roads WSKT generates income from operating them as well as
from building rentals, which in 1Q16 accounted for about 1% of revenue
 WSKT is aggressively expanding its precast manufacturing, now producing 1.8m tons
annually, an IPO is planned for 4Q16 to raise funds
Construction 85.2% Precast 14.6% Income from toll roads
and building rentals 0.2%
50
150
250
350
450
-
500
1,000
1,500
2,000
2,500
3,000
Aug-13 May-14 Feb-15 Nov-15 Aug-16
WSKT IJ (LHS)
Price relative to local index
(IDR) (%)

12. 1226 August 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Revenue breakdown, by segment 2015
Construction 85.2%
Precast 14.6%
Income from toll roads
and building rentals 0.2%

14. 1426 August 2016
WSKT: Leadership
Sources: A. Stotz Investment Research, company data, FactSet
President
Commissioner
President
Director
2012 2013 2014 2015 Past 12 months
Mohamad Hasan
2012 – Present
Muhammad Choliq
2008 – Present

15. 1526 August 2016
'12 '13 '14 '15 PTM
6 5 4 4 4
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
5 5 4 4 4 10 7 3 2 2
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
3 4 5 8 8 6 5 4 3 3 2 4 5 1 1 4 3 3 2 2
Benchmarked against 1,430 large Industrials companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
CEO, 2008 – Present
Muhammad Choliq
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth
maintained its #4 rank
Ranks better than 858 of
1,430 large Industrials
companies globally
WSKT: A. Stotz Profitable Growth

16. 1626 August 2016
'12 '13 '14 '15 PTM
6 5 4 4 4
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
5 5 4 4 4 10 7 3 2 2
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
3 4 5 8 8 6 5 4 3 3 2 4 5 1 1 4 3 3 2 2
Benchmarked against 1,430 large Industrials companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth
maintained its #4 rank
Ranks better than 858 of
1,430 large Industrials
companies globally
Massive improvement in
Growth, Profitability
maintained its #4 rank
WSKT: A. Stotz Profitable Growth
CEO, 2008 – Present
Muhammad Choliq

17. 1726 August 2016
'12 '13 '14 '15 PTM
6 5 4 4 4
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
5 5 4 4 4 10 7 3 2 2
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
3 4 5 8 8 6 5 4 3 3 2 4 5 1 1 4 3 3 2 2
Benchmarked against 1,430 large Industrials companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth
maintained its #4 rank
Ranks better than 858 of
1,430 large Industrials
companies globally
Massive improvement in
Growth, Profitability
maintained its #4 rank
Profitability driven by
Profit margin, dragged
down by Asset utilization
Growth driven by both
Sales and Margin change
WSKT: A. Stotz Profitable Growth
CEO, 2008 – Present
Muhammad Choliq

18. 1826 August 2016
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for a company in YOUR portfolio?
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and country of listing…and I’ll post it if I have it