Circular - Lippo Malls Indonesia Retail Trust - Investor Relations

Basis of ValuationThe International and Indonesian Valuation Standard (Standar Penilaian Indonesia) defined MarketValue as follows :“The estimated amount for which an asset should exchange on the date of valuation between awilling buyer and a willing seller in an arm’s-length transaction after proper marketing wherein theparties had each acted knowledgeably, prudently and without compulsion “. (SPI.1.3.1)We understand that the market of the property is transacted in Rupiah currency; therefore, we havevalued the property on Rupiah currency. We advise that the use of currency other than stated in thisreport is not applicable. However, for your information only, the exchange rate at the date ofvaluation is US $1= Rp9,480/- (middle rate).We advise that the market value opinion is without regard to costs of sale or purchase and withoutoffset of any associated taxes.Assumption of Valuation1. The value that stated in this report is restricted to the purpose of this valuation. The value thatstated in this valuation report cannot be used for other valuation purpose which can bemistakenly quoted.2. The title of the subject property is assumed to be good marketable title and free and clear fromall liens and encumbrances, easements, restriction, or limitation. We did not make any spacemeasurement and we assumed that the situation drawing contained in the certificates and/orprovided by the Client is true and accurate.3. The subject property is managed professionally and competently.4. This valuation certificate depends on the terms, conditions, comments and details as stated inthe full report.Approach of ValuationMarket ValueIdeally the Market Value should be based on market evidence using normal arm’s lengthtransaction of similar property. However, we have found no direct comparable evidence of thesubject property in similar vicinity within close period of time that can be used as comparable in themarket comparison approach. In this valuation, we have used income approach to replicate aninvestor’s point of view in acquiring an income producing property where earning capability is thecritical element affecting property value. In the income approach, we analyses the subject property’scapacity to generate future benefits and capitalizes the net income into an indication of presentvalue.Income Approach – DCF methodWe have utilized the DCF analysis in this income approach valuation by making consideration ofprobable income and expenses over the designation projection period (holding period), which isdifferent between BOT properties and non-BOT properties. In this DCF analysis, we have set forthVALUATION & ADVISORY SERVICESiiD-10