PT Pos Indonesia (Persero)’s maturing MTN Syariah Ijarah I Year 2018 rated “idBBB+(sy)”

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1. Press Release October 20 , 2020 s PT Pos Indonesia (Persero) Analysts: Yogie Surya Perdana / Umar Hareddy Phone/Fax/E-mail: (62-21) 72782380/ 72782370/ yogie.perdana@pefindo.co.id / umar.hareddy@pefindo.co.id CREDIT PROFILE Corporate Rating Rated Issues MTN POSINDO-01 MTN POSINDO-02 FINANCIAL HIGHLIGHTS idBBB+/Negative idBBB+ idBBB+ Rating Period October 16, 2020 – September 1, 2021 MTN Syariah Ijarah I/2018 October 16, 2020 – December 28, 2020 Rating History SEP 2020 APR 2020 SEP 2019 SEP 2018 idBBB+/Negative idBBB+/Negative idA-/Stable idA-/Stable As of/for the year ended Total adjusted assets [IDR bn] Total adjusted debt [IDR bn] Total adjusted equity [IDR bn] Total sales [IDR bn]^ EBITDA [IDR bn] Net income after MI [IDR bn] EBITDA Margin [%] Adjusted debt to EBITDA [X] Adjusted debt to adjusted equity [X] FFO to adjusted debt [%] EBITDA to IFCCI [X] USD exchange rate [IDR/USD] Jun-2020 (Unaudited) 11,514.4 1,723.1 4,490.3 2,451.8 153.2 25.5 6.2 *5.6 0.4 *8.2 1.4 14,302 Dec-2019 (Audited) 9,386.4 2,643.3 4,005.5 5,341.6 74.3 120.2 1.4 35.6 0.7 0.1 0.5 13,901 Dec-2018 (Audited) 8,758.7 1,808.3 3,951.6 5,222.3 238.5 120.7 4.6 7.6 0.5 11.3 2.5 14,481 Dec-2017 (Audited) 7,822.7 1,365.5 3,263.8 4,673.2 266.7 355.0 5.7 5.1 0.4 15.8 3.8 13,548 FFO = EBITDA – IFCCI + gross interest income – current tax expense EBITDA = operating profit + depreciation expense + amortization expense IFCCI = gross interest expense + other financial charges + capitalized interest; (FX loss not included) MI = minority interest ^ = include compensation from the government related to USO operations The above ratios have been computed based on information from the company and published accounts. Where applicable, some items have been reclassified according to PEFINDO’s definitions. PT Pos Indonesia (Persero)’s maturing MTN Syariah Ijarah I Year 2018 rated “idBBB+(sy)” PEFINDO has affirmed its “idBBB+(sy)” rating for PT Pos Indonesia (POST)’s Medium-Term Notes (MTN) Syariah Ijarah I/2018 of IDR200 billion that will be due on December 28, 2020. The Company plans to repay the maturing MTN using internal cash. Since the beginning of the year, the Company is provisioning a sinking fund to repay the MTN, recorded at IDR105 billion as of September 30, 2020. Besides the sinking fund, the Company also still had cash and cash equivalents of IDR414 billion and unused credit facility of around IDR100 billion. An obligor rated idBBB has an adequate capacity to meet its long-term financial commitments relative to that of other Indonesian obligors. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments. The plus (+) sign indicates that the rating is relatively strong within the respective rating category. The suffix (sy) means the rating mandates compliance with Islamic principles. The corporate rating reflects our view on the government’s strong support to POST, the Company’s extensive network area, and the increasing of e-commerce activities with their good growth prospects. The rating is constrained by the structural decline in mail sector, weak financial profile, and intense competition and cyclical demand. The rating could be lowered if the Company adds greater debt than projected amid weaker profitability and/or if the COVID-19 outbreak deteriorates the Company's business performance, which will worsen its financial profile beyond projected. A significant deterioration in the government support, such as a material divestment of ownership and/or revocation of the compensation from the government and/or decreasing public service role for the government may also lead to a rating downgrade. On the other hand, the outlook may be revised to stable if the activity levels as social distancing and/or lockdown policies in impacted areas unwind, combined with other factors, such as improvement on its financial profile as its transformation strategies succeed that translate into stronger revenue generation and improved profitability. POST is the national postal service operator that was incorporated in 1906. It traces its roots back to the Dutch system established in 1746 for delivery of mail especially for trading activities, making it the oldest state-owned entity in Indonesia. It collects, processes, and distributes letters and parcel products, and provides various other services, including money transfer and payment services, retail, and property. As of June 30, 2020, it was wholly owned by the Government of Indonesia. http://www.pefindo.com October 2020
2. Press Release October 20 , 2020 DISCLAIMER The rating contained in this report or publication is the opinion of PT Pemeringkat Efek Indonesia (PEFINDO) given based on the rating result on the date the rating was made. The rating is a forward-looking opinion regarding the rated party’s capability to meet its financial obligations fully and on time, based on assumptions made at the time of rating. The rating is not a recommendation for investors to make investment decisions (whether the decision is to buy, sell, or hold any debt securities based on or related to the rating or other investment decisions) and/or an opinion on the fairness value of debt securities and/or the value of the entity assigned a rating by PEFINDO. All the data and information needed in the rating process are obtained from the party requesting the rating, which are considered reliable in conveying the accuracy and correctness of the data and information, as well as from other sources deemed reliable. PEFINDO does not conduct audits, due diligence, or independent verifications of every information and data received and used as basis in the rating process. PEFINDO does not take any responsibility for the truth, completeness, timeliness, and accuracy of the information and data referred to. The accuracy and correctness of the information and data are fully the responsibility of the parties providing them. PEFINDO and every of its member of the Board of Directors, Commissioners, Shareholders and Employees are not responsible to any party for losses, costs and expenses suffered or that arise as a result of the use of the contents and/or information in this rating report or publication, either directly or indirectly. PEFINDO generally receives fees for its rating services from parties who request the ratings, and PEFINDO discloses its rating fees prior to the rating assignment. PEFINDO has a commitment in the form of policies and procedures to maintain objectivity, integrity, and independence in the rating process. PEFINDO also has a “Code of Conduct” to avoid conflicts of interest in the rating process. Ratings may change in the future due to events that were not anticipated at the time they were first assigned. PEFINDO has the right to withdraw ratings if the data and information received are determined to be inadequate and/or the rated company does not fulfill its obligations to PEFINDO. For ratings that received approval for publication from the rated party, PEFINDO has the right to publish the ratings and analysis in its reports or publication, and publish the results of the review of the published ratings, both periodically and specifically in case there are material facts or important events that could affect the previous ratings. Reproduction of the contents of this publication, in full or in part, requires written approval from PEFINDO. PEFINDO is not responsible for publications by other parties of contents related to the ratings given by PEFINDO http://www.pefindo.com October 2020