PT Lippo Karawaci Tbk · IDX:LPKR
PT Lippo Karawaci Tbk — Q1 2020 Earnings Presentation
80 slides from PT Lippo Karawaci Tbk's earnings presentation, July 2020
Slide 1: PT Lippo Karawaci Tbk 1Q20 Results Presentation
PT Lippo Karawaci Tbk 1Q20 Results Presentation July 2020
Slide 2: Shareholder Structure
Shareholder Structure As of 31 March 2020 As of 31 December 2019 No. of No. of Change No. Description No. of Shares % No. of Shares % Investors Investors YTD (%) I. Domestic Insurance 30 526,425,940 0.7% 36 629,830,720 0.9% -16.4% Individual 9,692 1,971,940,663 2.8% 10,491 2,134,292,043 3.0% -7.6% C
Slide 3: Contents
Contents Business Model 04 - 06 Recent Developments 07 - 14 1Q20 Financial Data 15 - 34 Subsidiaries 35 - 52 Turnaround Initiatives 53 - 56 Meikarta 57 - 59 Corporate Data 60 - 63 Appendix 64 - 77
Slide 4: One of Indonesia's largest integrated real estate developers
One of Indonesia’s largest integrated real estate developers One of the largest diversified publicly Market leader in property development, lifestyle listed property companies in Indonesia by total malls, and healthcare in Indonesia assets and revenue ◼ Ongoing development of 4 projects (2) with GFA
Slide 5: Simplified organization and refocused strategy
Simplified organization and refocused strategy Pillar Land Banking & Development Real Estate Management & Services Investments and Fund Management ▪ Development of residential, commercial ▪ Management of real estate assets, as ▪ Management of third-party capital for and industrial properties well as
Slide 6: Simplified organization and refocused strategy HoldCo
Simplified organization and refocused strategy Revised strategy focused on disciplined capital allocation approach across segments and supported by efficient asset rotation HoldCo ▪ No increase in head office personal expenses over the next 3 years ▪ No increase in consolidated leverage coupled with
Slide 7: Recent events highlights
Recent events highlights In April 2020, LPKR announced the launching of a share buyback program valued at up to Rp75 billion in shares. Based on the current share price, this implies that LPKR could buy back over 572 A million shares. The Company could buy the shares at a compelling discount to NAV.
Slide 8: Progress on Deleveraging
Progress on Deleveraging Total Debt 2016(1) to Present Debt(1) to Equity Ratios 2016 to Present Rp bn 16,000 (x) 14,872 14,539 13,811 0.90 13,663 1,273 2,134 14,000 12,252 0.79 2,981 0.80 2,977 1,090 12,000 0.74 x 0.70 0.70 10,000 0.60 0.56 x 0.60 x 8,000 13,266 0.50 12,738 0.46 0.49 x 11,162 10,830
Slide 9: Progress on Deleveraging (2)
Progress on Deleveraging (2) Net Debt(1) - 2016 to Present Cost of Debt(1) - 2016 to Present Rp bn (Rp bn) 2016 2017 2018 2019 1H20 (Rp bn) 2016 2017 2018 2019 1Q20 Average Debt 13,014 13,737 14,341 13,562 13,396 Total Debt 13,663 13,811 14,872 12,252 14,539 Interest Expense 160 253 547 894 248 (2)
Slide 10: Where the Existing Pipeline Project Funds Have Been Spent
Where the Existing Pipeline Project Funds Have Been Spent Cost to Completion Construction Progress Percent Complete $ 230mn 80.00% $212m 71.73% 70.00% $180m 60.00% $160m 54.16% 50.00% 40.00% 42.43% $110m 30.00% 31.73% 28.30% 20.00% 10.00% 0.00% Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 1Q2019 2Q2
Slide 11: Commitment to deliver existing key projects
Commitment to deliver existing key projects Hillcrest and Fairview House– Ahead of targeted construction schedule Target Launched 2014 2Q20 completion Estimated Total construction residential 558 $18 mn costs to units completion % Sold as 100,716 Total GFA per 31 Mar 60% December 19 March 20 sqm 202
Slide 12: Commitment to deliver existing key projects (cont'd)
Commitment to deliver existing key projects (cont’d) Kemang Village Hotel / Office – On Schedule Target Launched 2007 N.A completion Estimated construction Total units 95 N.A. costs to completion % Sold as Total GFA 21,937 sqm per 31 Mar 0% December 19 March 20 2020 Holland Village – Ahead of target
Slide 13: Meikarta
Meikarta Construction Status Sales Pickup 60% Rp mn Units 160,000 450 150,401 50% 140,000 400 49% 133,299 415 350 120,000 43% 310 40% 300 100,000 250 30% 80,000 201 69,148 28% 67,053 200 59,013 60,000 162 150 20% 40,000 123 100 14% 10% 20,000 50 11% 7% - - 1Q19 2Q19 3Q19 4Q19 1Q20 0% 4Q18 1Q19 2Q19
Slide 14: Meikarta: Significant progress in 1Q20
Meikarta: Significant progress in 1Q20 December 2019 March 2020 ~500ha of total landbank for long term development over phases Phase 1 ▪ Consists of ~84 ha ▪ Significant funds already invested into key foundation infrastructure for “Phase 1 +” Phase 1A ▪ Consists of ~28 ha ▪ 62 towers, of which 44 t
Slide 15: 1Q20 Financial Data
LIPPO 1Q20 FINANCIAL DATA
Slide 16: LPKR Financials as of 1Q20
LPKR Financials as of 1Q20 Revenue (Rp Bn) EBITDA (Rp Bn) Real Estate Healthcare Malls Others Fund Mgmt. Revenue Real Estate Real Estate Fund Mgmt. EBITDA & Development (Mgmt & Svcs) & Investment & Development Mgmt & Services & Investment Recurring Income Recurring Income Net Profit (Rp Bn) Capex (R
Slide 17: Starting to see resolution in existing pipeline projects
Starting to see resolution in existing pipeline projects Completed projects with units ready to be sold Total Total 4Q19 Est. value 1Q20 Est. value Target 4Q19 Account 1Q20 Account Percentage Project Stake Type GFA residential of Unsold Units of Unsold Units Completion Rec. ($m) Rec. ($m) Sold (sqm)
Slide 18: Net asset value breakdown
Net asset value breakdown Ownership (% ) Land A rea (ha) Build ing A rea (ha) A ssets V alue ($m) URBA N DEV ELOPMEN T: Lippo Village1A) 100% 420 4 2,037 1A) Lippo Cikarang 81% 441 14 879 1C) Tanjung Bunga 62.7% 192 1 100 1A) San Diego Hills 100% 87 4 160 1C) Micro Suburbs 100% 20 N/A 22 SUB TOTA L
Slide 19: Key Financial Highlights
Key Financial Highlights 1Q20 1Q19 Change (%) Presales (Rp billion) 703 623 13% Revenue (Rp billion) 3,101 2,858 8% Recurring Revenue (Rp billion) 2,422 2,254 7% EBITDA (Rp billion) 705 469 50% EBITDA Margin 23% 16% N.A. Net Income (Rp billion) (2,116) 50 -4329% Net Debt/Equity Ratio (X) 0.29 0.31 N
Slide 20: Marketing sales on track with adjusted target
Marketing sales on track with adjusted target FY20 1Q20 Marketing Sales by Location Marketing Marketing 1Q20 1Q20 Land Sales Target Sales Units ASP Project Location (Rp bn) (RpBn) Sold (RpMn/sqm) 43- 82 Lippo Village West Greater Jakarta 750 68 28 18.0 60 Lippo Cikarang : 800 374 339 146 Residential
Slide 21: Property marketing sales by structure
Property marketing sales by structure FY20 (in Rp bn) FY16 FY17 FY18 FY19 1Q19 1Q20 Guidance Residential 973 423 1,336 860 239 578 2,175 Low Rise 573 227 1,190 668 186 403 1,535 High Rise 400 196 146 192 53 175 640 Commercial - 63 19 130 3 5 25 Industrial 75 78 81 714 351 78 100 Unique Product SDH 1
Slide 22: Full impact of rights issue improves B/S & deleveraging
Full impact of rights issue improves B/S & deleveraging (Rp Billio n C o nso lidate d) ASSETS 1 Q2 0 FY19 LIABILITIES & STOC KHOLDERS' EQUITY 1 Q2 0 FY19 C urre nt Asse ts C urre nt Liabilitie s Cash & Cash Equivalent 5,357 4,685 Bank Loan 947 747 Investments 8,068 7,731 Other Debt - Non Bank 69 82
Slide 23: Debt maturity profile
Debt maturity profile Debt breakdown Debt maturity Profile (as of 1Q20) Coupon rate Coupon rate $ million 8.125% pa 6.75% pa 9% 450 420.0 417.0 400 350 300 250 91% 200 150 $ Bonds Rp Bank Loans 100 3% 50 32.4 10.7 9.4 8.4 2.5 0 2020 2021 2022 2023 2024 2025 2026 Rp Loans (Local) Bonds (in $m) 2020 2
Slide 24: 1Q20 Net Loss Compared to 1Q19
1Q20 Net Loss Compared to 1Q19 (in Rp million) 1Q20 1Q19 Change % FY19 FY18 Change % Total Revenues 3,100,671 2,858,242 242,429 8% 12,320,248 11,452,799 867,449 8% COGS 1,771,814 1,616,935 154,879 10% 7,724,006 6,200,783 1,523,223 25% Gross Profit 1,328,857 1,241,307 87,550 7% 4,596,242 5,252,016 (6
Slide 25: Highlights of One off items in 1Q20 vs 1Q19
Highlights of One off items in 1Q20 vs 1Q19 (Rp billion) 1Q20 1Q19 YoY% Comments ◼ All three business pillars reported Revenue 3,101 2,858 8.5% higher revenue in 1Q20 vs 1Q19 ◼ EBITDA was Rp128 billion higher in 1Q20 because of PSAK 73 EBITDA 705 469 50% implementation ◼ Rp depreciation by 17.7% fro
Slide 26: Business is underpinned by a high quality revenue profile
Business is underpinned by a high quality revenue profile with significant visibility High proportion of revenue attributable to recurring income streams Recurring vs Development revenue 76% 24% 73% 27% 76% 24% 79% 21% 78% 22% (Rp bn) 12,320 11,453 10,071 125 213 1696 1779 506 246 1726 403 397 7018
Slide 27: Balance sheet highlights
Balance sheet highlights Total assets (Rp Bn) Total capitalization (Rp Bn) 70,000 50,000 60,000 45,000 6,844 1,049 40,000 12,080 14,363 50,000 11,301 8,315 10,016 1,047 35,000 10,210 5,801 14,621 5,601 40,000 1,114 5,357 30,000 13,638 4,308 1,122 4,685 5,497 2,538 5,830 8,068 25,000 30,000 3,900 1,8
Slide 28: Key credit metrics
Key credit metrics Net debt / EBITDA (x) (1) EBITDA / Interest (x) (2) 20.7 2.0 1.7 1.1 5.6 5.7 0.5 3.2 2017A 2018A 2019A 1Q20A 2017A 2018A 2019A 1Q20A Net debt / Total assets (%) Net debt / Total equity (%) 26% 52% 46% 22% 15% 28% 13% 22% 2017A 2018A 2019A 1Q20A 2017A 2018A 2019A 1Q20A (1) 1Q2020 E
Slide 29: Key Operational Metrics of Recurring Income Assets
Key Operational Metrics of Recurring Income Assets Occupancy Trend Occupancy Trend Occupancy Trend Malls Under Management Network of Hospitals Hotels Under Management 80% 75% 73% 100% 70% 71% 62% 68% 68% 85% 88% 88% 88% 87% 85% 70% 90% 58% 59% 60% 55% 60% 80% 50% 60% 48% 70% 50% 50% 60% 40% 40% 50%
Slide 30: Income statement details
Income statement details Property marketing sales (Rp Bn) Revenue (Rp Bn) 2,000 14,000 1,800 - 142 125 12,000 213 1,600 - 1,696 162 246 1,779 506 10,000 1,400 81 714 403 19 1,726 1,200 1,109 8,000 397 1,000 6,000 5,965 7,018 130 5,306 800 43 29 34 4,000 138 1,336 - 78 390 386 600 30 5 126 78 2,000 1
Slide 31: Historical capex spending & land bank purchases
Historical capex spending & land bank purchases Capex Spending (Rp Bn) 11,000 10,000 9,000 1,925 8,000 7,000 6,000 5,000 1,480 7,011 4,000 3,000 2,401 3,699 2,197 2,000 1,598 1,641 1,000 1,096 1,051 873 98 550 75 844 79 331 248 136 958 798 80 - 331 279 477 468 103 28 2014 2015 2016 2017 2018 2019 1Q
Slide 32: Currency risk is offset by our hedging strategy
Currency risk is offset by our hedging strategy Hedging BOND 2025 15,000 16,000 17,500 BOND 2026 15,000 16,000 17,500 COUPON 2026 15,000 16,000 17,500 Hedged Unhedged Amount Lower Upper Description Maturity ($m) Strike (Rp) Strike (Rp) From time to time, the Company Bond 2025 420 15,000 17,500 Jan-2
Slide 33: Rental Payment to REITS
Rental Payment to REITS Rp Bn ❖ Expected reduction in net rental payments from 2022 onwards as certain lease rental agreements mature and are renegotiated 1,200 ❖ There is a portion that is reflective of exchange rate changes between SGD and IDR ❖ The annual changes are linked to Sg CPI changes and
Slide 34: Extension of the long-stop date for completion of sale of Puri Mall
Extension of the long-stop date for completion of sale of Puri Mall 1 Puri Mall Strata process is currently pending the below: • Regulatory body approval • Governor’s approval • Administrative process to obtain the legalization of segregation deed and registration of title 2 Once Strata is issued, L
Slide 35: Subsidiaries
LIPPO SUBSIDIARIES
Slide 36: Siloam's Strategic Growth to Take Advantage of the Market Potential
36 Siloam’s Strategic Growth to Take Advantage of the Market Potential SH Mataram Owned Hospitals SH Bekasi Timur SH Bangka SH Palangka Raya SH Paal Dua Belitung SH SH Jember RSU Kelapa Balikpapan SH Cirebon Dua SH Lippo BIMC SH Lubuk SH Jambi RSU Syubbanul Cikarang Asri Sentosa SH Mampang Nusa Dua
Slide 37: EBITDA & EBITDA Margin by Segments for 1Q20
EBITDA & EBITDA Margin* by Segments for 1Q20 (IDR bn) Margin: 14% Margin: 41% Contribution: 5% Margin: -15% Contribution: 13% Contribution: -5% 16 Margin: 28% 15 Contribution: -25% Contribution: 56% 40 76 169 Margin: 35% Contribution: 56% 303.45 169 Flagship Mature Distinct BPJS Ramping Up HO Expens
Slide 38: Flagship Hospitals
38 Flagship Hospitals Year GPs & Land/ Bed Operationa Centre of Name Class Region Opene Specialist Nurses Accreditation Building Capacity l Beds Excellence d s Ownership Cardiology, SH Lippo 1. Greater Orthopedics, B 1996 308 274 253 407 Village Jakarta Neuroscience, JCIA Emergency Cardiology, Urolo
Slide 39: Mature Hospitals
39 Mature Hospitals Year GPs & Bed Operation Nurse Land/Buildin Name Class Region Opene Specialist Centre of Excellence Accreditation Capacity al Beds s g Ownership d s SH Surabaya B 3. East Java 2002 160 147 156 247 Cardiology, Emergency SH Lippo Occupational Health, B 2. West Java 2002 164 98 79 1
Slide 40: Mature Hospitals (Cont'd)
40 Mature Hospitals (Cont’d) Year GPs & Bed Operation Nurse Land/Buildin Name Class Region Opene Specialist Accreditation Capacity al Beds s g Ownership d s RS Umum Putera C 2. West Java 2017 114 94 44 116 Bahagia RS Hosana C 2. West Java 2017 98 84 43 91 Bekasi 3. West Nusa SH Mataram C 2017 69 40
Slide 41: Distinct Hospitals
Distinct Hospitals GPs & Date Bed Operation Land/Buildin Name Class Region Specialist Nurses Centre of Excellence Accreditation Opened Capacity al Beds g Ownership s SH 1. Greater C 2012 203 33 22 61 Cardiology Cinere Jakarta BIMC Kuta C 3. Bali 2013 39 18 44 59 Tourists, Emergency 3rd Party BIMC Nu
Slide 42: BPJS Hospitals
BPJS Hospitals GPs & Date Bed Operation Land/Building Name Class Place Specialist Nurses Accreditation Opened Capacity al Beds Ownership s 1. Greater RSUS B 2012 640 250 137 245 Jakarta SH B 2. West Java 2014 235 235 79 263 Purwakarta 3. East SH B Nusa 2014 416 152 68 215 Kupang Tenggara 42 42
Slide 43: Ramping Up Hospitals
Ramping Up Hospitals GPs & Date Bed Operationa Land/Building Name Class Region Specialist Nurses Accreditation Opened Capacity l Beds Ownership s SH Buton C 4. Sulawesi 2016 140 56 33 89 SH 3. East Labuan C Nusa 2016 124 95 27 71 Bajo Tenggara SH Bogor C 2. West Java 2017 246 56 56 65 Related Party
Slide 44: Ramping Up Hospitals (Cont'd)
Ramping Up Hospitals (Cont’d) GPs & Date Bed Operation Land/Building Name Class Region Specialist Nurses Accreditation Opened Capacity al Beds Ownership s RS Siloam Lubuk C 5. Sumatera 2018 175 50 35 54 Linggau SH Jember C 3. East Java 2018 323 30 32 46 SH 2. Central D 2018 50 17 40 24 3rd Party Sem
Slide 45: Lippo Cikarang balance sheet and marketing sales
Lippo Cikarang balance sheet and marketing sales Balance Sheet (Rp Billion) Dec 2016 Dec 2017 Dec 2018 Dec 2019 Mar 2020 Assets 5,727 11,267 9,226 12,219 13,899 Debt - 249 - 200 500 Liabilities 1,483 4,734 1,696 1,337 2,942 Equity 4,244 6,533 7,530 10,882 10,958 Return on Assets (%) 9.4% -7.3% 21.3%
Slide 46: Lippo Cikarang summary income statement
Lippo Cikarang summary income statement Revenue (Rp Bn) EBITDA (Rp Bn) 2,500 1,200 2,210 1,014 985 2,120 1,000 2,000 800 606 1,695 600 496 1,545 1,501 1,500 400 203 200 1,000 - (200) 2015 2016 2017 2018 2019 1Q20 574 (400) 500 (600) (800) - (768) 2015 2016 2017 2018 2019 1Q20 (1,000) Marketing Sales
Slide 47: Lippo Malls
Lippo Malls Dominant position in retail development & property management, through management of 61 malls throughout Indonesia ▪ 3.7 million sqm GFA ▪ As of March 31, 2020 : Overall average occupancy 85.3% and 90.9% in LMIRT properties MANAGED MALLS: PIPELINE MALLS: LIPPO MALL PURI CITY WALK LIPPO V
Slide 48: Retail Malls
Retail Malls Indonesian retail outlook is positive, supported by middle-income growth Occupancy Trend Rental rates in 2016-1Q20 boosted by Specialty stores Growing middle class expected to boost consumer spending Malls Under Average Management rental rate of malls managed by LPKR Middle and affluent
Slide 49: Existing Network
Lippo Malls- Existing Network across Indonesia Existing Network Sumatra Kalimantan Sulawesi Area : 724,839 sqm Area : 24,852 sqm Area : 153,815 sqm NLA* : 344,761 sqm NLA* : 17,704 sqm NLA* : 82,804 sqm Occupancy : 85% Occupancy : 88% Occupancy : 68% ARR* (‘000) : Rp 99/sqm/mo ARR* (‘000) : Rp 95/sq
Slide 50: Aryaduta Hotels
Aryaduta Hotels Aryaduta Hotel Aryaduta Hotel Imperial Aryaduta Aryaduta Hotel Aryaduta Hotel Aryaduta Hotel Jakarta Pekanbaru Hotel & Country Club, LK Medan Manado Kuta Bali Occupancy rate 59.5% 52.5% 59.9% 77.1% 57.8% 56.2% Avg room rate (Rp '000/room/day) 568 303 623 486 436 864 Number of rooms 3
Slide 51: Hotels
Hotels Tourism industry is a key priority of the Government and benefits from favourable initiatives Average room rate(1) Number of Rooms 2016 – 1Q20 2016 – 1Q20 IDR ‘000 per room per day 800 2,200 697 686 2,144 2,144 2,144 700 656 2,150 600 566 545 2,100 500 2,050 400 2,000 1,968 1,950 1,936 300 20
Slide 52: Lippo Malls REIT – Manages retail malls and retail spaces
Lippo Malls REIT – Manages 23 retail malls and 7 retail spaces S$ Millions 1Q20 1Q19 Y-O-Y FY19 FY18 Y-O-Y Gross Rental Income (GRI) 36.6 37.4 -2.3% 155.3 155.2 0.0% Total Gross Revenue 64.9 65.9 -1.5% 273.0 230.3 18.5% Net Property Income (NPI) 39.8 40.5 -1.9% 176.2 165.0 6.8% Distributable Income
Slide 53: Turnaround Initiatives
LIPPO TURNAROUND INITIATIVES
Slide 54: Update on Transformation Plan
Update on Transformation Plan (E) Pro - (A) (C) (D) (B) Status Forma Event Announced Variance Contracted / Comments 1Q20 Variance March 2019 (C=B-A) Committed (E=C+D) LPKR Rights LPKR Rights Issue $730m $787.5m $58m $58m • Investment by anchor investors for over $230m Issue • Strong shareholder resp
Slide 55: Delever, improve liquidity and generate returns
Delever, improve liquidity and generate returns Comprehensive funding programme Strategic initiatives to delever, improve liquidity and generate returns ($m) Shore up 20 Delever liquidity Generate returns 186 246 69 788 808 188 119 LPKR Right Myanmar Total Funding Bond buyback Liquidity Investment I
Slide 56: Commitment to deliver existing key projects
Commitment to deliver existing key projects Investment in existing key projects Sources Uses ($m) ▪ Refers to unsold units from completed projects ▪ Inventories are ready to be sold with no further construction costs 158 110 6 23 ▪ Refers to progress payments to be 150 collected from sold 227 units
Slide 57: Meikarta
LIPPO MEIKARTA
Slide 58: Strategic region for growth
Strategic region for growth – In between 2 of Indonesia’s largest cities (Jakarta & Bandung); West Java is Indonesia’s most populous province SURROUNDED BY FORTUNE 500 COMPANIES ▪ 4.000 MULTINATIONAL COMPANIES ▪ 1 MILLION CAR PRODUCTION / YEAR ▪ 10 MILLION MOTORCYCLES PRODUCTION / YEAR ▪ 12.000 EXPA
Slide 59: New infrastructure underway increasing accessibility to Industrial Estates
New infrastructure underway increasing accessibility to Industrial Estates, Future driver of FDI KERTAJATI INTERNATIONAL AIRPORT PATIMBAN DEEP SEAPORT Estimated cost: Rp 25.4 Tn. Estimated cost: Rp 40.0 Tn. Estimated completion: Already Operational Estimated completion: End of 2021 (Partial) ELEVATE
Slide 60: Corporate Data
LIPPO CORPORATE DATA
Slide 61: 1Q20 Shareholder Structure
1Q20 Shareholder Structure Lippo Related Companies Public < 5% 58.07% 41.93% No of Floating Shares : 70,591,913,869 (excl. Treasury Shares) 51.1% 81.0% 62.7% 100.0% 100.0% Title Two PT Gowa Makassar Title Four Title Three PT Asiatic Sejahtera PT Siloam International PT Bowsprit Asset PT Lippo Cikara
Slide 62: Notes Outstanding
Notes Outstanding Theta Capital Pte. Ltd Theta Capital Pte. Ltd Theta Capital Pte. Ltd $95m $417m $325m 8.125% Senior Notes 6.75% Senior Notes 8.125% Senior Notes Reg S Reg S Reg S Due 2025 Due 2026 Due 2025 February 2020 October 2016 January 2020 D C CC CCC- CCC CCC+ B- B B+ BB- BB BB+ BBB- BBB BBB
Slide 63: New leadership team focused on corp. governance and transparency
New leadership team focused on corp. governance and transparency Board of Commissioners provides adequate representation to minority shareholders John A Prasetio Dr. Stephen Riady George Raymond Zage III Kin Chan Anangga W. Roosdiono Independent President Commissioner Commissioner Commissioner Indep
Slide 64: Appendix
LIPPO APPENDIX
Slide 65: The Lippo Group operates across multiple industries
The Lippo Group operates across multiple industries Regional Presence in China, Hong Kong, Japan, Singapore, Korea, and Macau Indonesia CORE INVESTMENT FOUNDATION Property Healthcare Retail & Financial TMT Education 65
Slide 66: Nationwide presence across Indonesia creates network effect
Nationwide presence across Indonesia creates network effect Business segment Growth metrics Sumatra Kalimantan Sulawesi(4) Cummulative Marketing Sales (Rp Bn)1) 18,975 5 12 2 1 1 4 Property 4.6x Development 3 4 2 4,115 2013A 1Q20A # of malls under management 61 Kalimantan 1.8X Sumatra Lifestyle Mall
Slide 67: Real Estate Development
Real Estate Development Lippo Village – in Karawaci, West of Jakarta Dev. Rights 3,226 ha Acq. Land Jobs 48,734 1,418 ha Landbank 303 ha (Net) Houses 10,593 Roads Built 113,5 km Condos 5,686 Shophouses 1,193 Trees 58,199 planted Population 59,519 Lippo Cikarang– East of Jakarta Dev. Rights Existing
Slide 68: Real Estate Development
Real Estate Development Tanjung Bunga– Makassar, South Sulawesi Dev. Rights 1,500 ha Acq. Land Jobs 14,724 659 ha Landbank 283 ha (Net) Roads Built 26,7 km Houses 7,075 Shophouses 199 Trees 13,199 planted Population 21,030 San Diego Hills Memorial Park & Funeral Homes Master Plan 500 ha Acq. Land 12
Slide 69: Regulatory Accounting Changes - Context
Regulatory Accounting Changes - Context Old PSAK 23/34/44 Revenue Old PSAK 30 Leases Separate models for: Construction Dual lease model Contracts, Real estate developments, Goods and Services Off-balance sheet treatment Focus on risk & reward New PSAK 72 Revenue New PSAK 73 Leases Single m
Slide 70: Key Principles - PSAK 72 & 73
Key Principles - PSAK 72 & 73 PSAK 72 PSAK 73 No impact on actual cash flow. Significant impact on The new standard requires recognition of reporting of financial statements: Revenues based on when control is transfer to the All leases (operating and finance lease) will be customer. recognized: Th
Slide 71: Regulations becoming more conducive to growth
Regulations becoming more conducive to growth Property Type Old Regulation New Regulation In 2019 the regulators have: I II III & above I II & above Landed Property > 70 sqm 85% 80% 75% - 80% ❖ Increased the transaction 22-70 sqm - 85% 80% - 85% price the for super luxury tax <= 21 sqm - - - - - to
Slide 72: Foreign ownership remains a challenge
Foreign ownership remains a challenge 72
Slide 73: Overview of Jakarta's Condominium market
Overview of Jakarta’s Condominium market Condominium Market Overview 1Q20 SALES RATE BY GRADE 80,000 80% 75% 30,000 100% 70,000 72% 71% 25,000 80% 60,000 67% 70% 65% 65% 20,000 60% 64% 63% 62% 60% 50,000 Units 61% 60% 15,000 58% Units 40,000 60% 40% 10,000 30,000 51% 5,000 20% 20,000 50% 0 0% 10,000
Slide 74: Overview of Jakarta's shopping mall & CBD office market
Overview of Jakarta’s shopping mall & CBD office market Retail Market Overview NET ABSORPTION, NEW SUPPLY AND OCCUPANCY RENTAL RATES 250,000 100% 95% 200,000 90% Occupancy 150,000 85% sqm 80% 100,000 75% 70% 50,000 65% 0 60% 2008 2010 2012 2014 2016 2018 2020 2022 2024 Net absorption New Supply Occu
Slide 75: Indonesia – An Underpenetrated Healthcare Market
Indonesia – An Underpenetrated Healthcare Market 53,000 238,000 Doctors in Indonesia(1) Total number of Hospital Beds in Indonesia(1) 2.0 264,000,000 9.0 Doctors to 10,000 population in Indonesia(1) Beds to 10,000 population in Indonesia(1) The Population of Indonesia 12.5 21.0 Doctors to 10,000 pop
Slide 76: Strong growth in private insurance and government healthcare spend
Strong growth in private insurance and government healthcare spend BPJS Participation (million people) (3) Annual value of private medical insurance continue to % of BPJS coverage increase(1). 79% US$2bn 71% 65% 188 208 172 +186% US$0.72bn 2007 2020 2016 2017 2018 The number of insured people by pri
Slide 77: LPKR's trading performance
LPKR’s trading performance LPKR historical Price / NAV per share post global financial crisis Rp Period Price / NAV 2,000 average Min Average Max 2015 1.3X 1.6X 1.9X 1,500 2017 0.5X 0.8X 1.0X 2019 0.2X 0.5X 0.7X 1,000 500 0 Jan-11 Aug-11 Mar-12 Oct-12 May-13 Dec-13 Jul-14 Feb-15 Sep-15 Apr-16 Nov-16
Slide 78: Notes:
Notes:
Slide 79: Notes:
Notes:
Slide 80: Investor Relations
Investor Relations Bret Ginesky Head of Investor Relations : bret.ginesky@lippokarawaci.co.id : +62 21 25669078 : www.lippokarawaci.co.id