This Valuation report is prepared using financial projections prepared by the Company's management, reflecting the fairness of the projections and their ability to be achieved (fiduciary duty).
KJPP RSR is responsible for conducting an analysis and appraising the financial projections prepared by the Company's management. KJPP RSR is responsible for the opinions generated in the valuation report.
The valuation report is open to the public, except for confidential information that may affect the Company's operations.
KJPP RSR has obtained information on the legal status of the valuation object from the Company.
Limiting Conditions
Considering that the IndiHome Business Segment is part of the Company, the IndiHome Business Segment does not have a separate audited financial statement. Therefore, in conducting historical analysis, KJPP RSR relies on the working papers prepared by the Company for the period ending December 31, 2020 – December 31, 2022, which were reviewed by KAP Purwantono Sungkoro & Surja using SAE 3000 accounting standards.
This Business Valuation Report is open to the public; however, the publication of all or part of the report must be approved by the Company's management, given the possibility of confidential information that may affect competition and the Company's operations.
| 5. | Valuation Approach and Method | |
Based on the analysis conducted, the IndiHome Business Segment has good business prospects, where revenue factors are one of the main drivers of the Company's value. Therefore, the valuation is conducted using the income approach as the primary valuation approach. Considering that the IndiHome Business Segment is an ongoing business and information related to comparable companies for similar businesses is available, KJPP RSR applies the market approach as the second valuation approach.
KJPP RSR does not apply the asset approach in this valuation, considering that most of the fixed assets needed to support the IndiHome Business Segment are not transferred and are still managed by the Company.
The approach and valuation method mentioned above are considered by KJPP RSR as the most appropriate to be applied in this assignment.
The Market Value of IndiHome Business Segment as of December 31, 2022, using the income and market approach, is IDR 58,165,000,000,000.
| B. | VALUATION OF PT TELEKOMUNIKASI SELULAR'S SHARES |
KJPP RSR as the independent appraiser to conduct business and stock valuation and provide an opinion on the fairness of the Company's Proposed Transaction.
The following is a summary of the valuation report on the object of the Proposed Transaction as set forth in the Share Valuation Report of PT Telekomunikasi Selular and Subsidiaries dated April 5, 2023.
Please refer to section II.C for identity information of the Company and Telkomsel.
The object of this Valuation is 100% Shares of Telkomsel and Subsidiaries.