Pt Lippo Karawaci Tbk · IDX:LPKR
Pt Lippo Karawaci Tbk — Q3 2020 Earnings Presentation
81 slides from Pt Lippo Karawaci Tbk's earnings presentation, Nov 2, 2020
Slide 1: PT Lippo Karawaci Tbk 3Q20 Results Presentation
PT Lippo Karawaci Tbk 3Q20 Results Presentation 2 November 2020
Slide 2: Shareholder Structure
Shareholder Structure As of 30 September 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 28 480,717,640 0.7% 36 629,830,720 0.9% -23.7% Individual 11,403 2,342,744,538 3.3% 10,491 2,134,292,043 3.0% 9.
Slide 3: Contents
Contents Business Model 04 - 07 Recent Developments 08 - 14 3Q20 Financial Data 15 - 36 Corporate Governance Initiatives 37 - 42 Subsidiaries 43 - 59 Meikarta 60 - 62 Corporate Data 63 - 66 Appendix 67 - 78
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 3 projects (1) 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 ▪ Focused business strategy base off operational ex
Slide 7: Recent events highlights
Recent events highlights On 22 Oct 2020, FREIT announced two months of rental relief totaling S$16.5m for LPKR for the A months of September and October 2020, which is on top of a S$16.4m rental relief for May and June 2020. Total rental relief should result in LPKR paying about 36% lower rental sub
Slide 8: Progress on Deleveraging
Progress on Deleveraging Total Debt(1) 2016 to Present Debt(1) to Equity Ratios 2016 to Present Rp bn (x) 16,000 14,872 14,474 13,663 13,811 0.90 12,252 2,134 14,000 2,377 0.79 0.80 0.74 x 2,981 1,090 2,977 12,000 0.70 0.70 0.60 x 10,000 0.60 8,000 0.56 x 0.50 12,738 0.44 12,097 11,162 0.49 x 10,830
Slide 9: Progress on Deleveraging (2)
Progress on Deleveraging (2) Net Debt - 2016 to Present Cost of Debt - 2016 to Present Rp bn 10.0% 14,000 13,054 9.2% 9.0% 8.9% 12,000 11,273 10,413 10,757 8.0% 8.1% 10,000 7.4% 7,567 7.0% 8,000 6.6% 6,000 6.0% 4,000 5.0% 2,000 4.0% - 3.0% 2016 2017 2018 2019 9M20 2016 2017 2018 2019 9M20 (Rp bn) 20
Slide 10: Where the 2019 Legacy Project Pipeline Funds Have Been Spent
Where the 2019 Legacy Project Pipeline Funds Have Been Spent Cost to Completion Construction Progress(1) Percent Complete $212m 100% 90% 88.9% $180m 81.9% 80% $160m 70% 71.7% 60% $110m 54.2% 50% $87m 42.4% 40% 30% 31.7% $54m 20% 10% 0% Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 2Q19 3Q19
Slide 11: Commitment to deliver 2019 legacy pipeline projects
Commitment to deliver 2019 legacy pipeline projects Embarcadero – On Schedule Target Launched 2014 1Q21 completion Estimated Total construction residential 721 $18 mn costs to units completion % Sold as Total GFA 67,724 sqm per 30 Sep 65% Sep 19 Sep 20 2020 Holland Village Jakarta – Ahead of targete
Slide 12: Commitment to deliver new 2020 projects
Commitment to deliver new 2020 projects Cendana Homes – started construction in 3Q20 Target Launched 2020 2Q21 completion Estimated Total construction residential 324 $8 mn costs to units completion % Sold as Total GFA 20,860 sqm per 30 Sep 100% Cendana Place Sep 20 Cendana Spring Sep 20 2020 Waterf
Slide 13: Meikarta
Meikarta Construction Status District 1 Sales Pickup Rp bn Units 70% 250 550 479 60% 60% 500 472 57% 209.9 200 415 450 50% 49% 180.6 400 155.5 350 43% 150 40% 133.3 310 300 250 30% 100 28% 201 200 69.1 67.1 59.0 162 150 20% 123 50 100 14% 50 10% 11% 0 0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 0% Sales va
Slide 14: Meikarta: Significant progress since 2019, Handovers Commence
Meikarta: Significant progress since 2019, Handovers Commence Jan 2020 Sep 2020 ~500ha of total landbank for long term development over phases Phase 1 ▪ Consists of ~84 ha ▪ Significant funds already invested into key foundation infrastructure for “Phase 1 +”. Phase 1A ▪ Consists of ~28 ha ▪ 28 towe
Slide 15: 9M20 Financial Data
LIPPO 9M20 FINANCIAL DATA
Slide 16: LPKR Financials as of 9M20, Property Business Strengthening
LPKR Financials as of 9M20, Property Business Strengthening Revenue (Rp Bn) EBITDA (Rp Bn) Real Estate Healthcare Malls Others Fund Mgmt. Revenue Real Estate Real Estate Fund Mgmt. EBITDA & Development (Mgmt & Svcs) & Invnt & Development Mgmt & Services & Investment Recurring Income Recurring Income
Slide 17: LPKR cash balance remained resilient in 9M20
LPKR cash balance remained resilient in 9M20 Cash from operating Cash from investing Cash from financing Cash at Business Call option Placement of Asset Fund Loan Buyback of Forex Cash at beginning operations unwinding investments disposal proceeds repayment treasury stock impact end 17
Slide 18: Starting to see resolution in existing pipeline projects
Starting to see resolution in existing pipeline projects Completed projects with units ready to be sold Total 1H20 Est. value 9M20 Est. value Total GFA Target 1H20 Account 9M20 Account Percentage Project Stake Type residential of Unsold Units of Unsold Units (sqm) Completion Rec. ($m) Rec. ($m) Sold
Slide 19: Net asset value breakdown
Net asset value breakdown Ownership (%) Land Area (ha) Building Area (ha) Assets Value ($m) REAL ESTATE DEVELOPMENT: Lippo Village 1A) 100% 420 4 2,294 1A) Lippo Cikarang 84% 441 14 1,012 1C) Tanjung Bunga 62.7% 192 1 113 1C) City of Tomorrow (retail, apart, inv & hotel) 85% 5 N/A 42 1C) Kemang Vill
Slide 20: Key Financial Highlights
Key Financial Highlights 9M20 9M19 Change (%) Presales (Rp billion) 2,276 1,139 100% Revenue (Rp billion) 8,582 8,560 0% Recurring Revenue (Rp billion) 6,212 6,938 -10% EBITDA (Rp billion) 1,584 902 76% EBITDA Margin 18% 11% N.A. Net Income (Rp billion) (2,340) (1,725) -4329% Net Debt/Equity Ratio (
Slide 21: Marketing sales on track with adjusted target
Marketing sales on track with adjusted target Marketing Sales by Location Project Location in RpBn 9M20 Units 9M20 Land FY20 9M20 Sold ASP Marketing Marketing (RpMn/sqm) Sales Target Sales Holdco 1,700 1,348 2,505 Lippo Village West Greater Jakarta 750 710 706 16.0 Holland Village Manado Manado, Nor
Slide 22: Property marketing sales by structure
Property marketing sales by structure FY20 (in Rp bn) FY16 FY17 FY18 FY19 9M19 920 Guidance Residential 973 423 1,336 860 607 1,847 2,175 Low Rise 573 227 1,190 668 425 1,512 1,535 High Rise 400 196 146 192 181 336 640 Commercial - 63 19 130 21 12 25 Industrial 75 78 81 714 402 268 100 Unique Produc
Slide 23: Full impact of rights issue improves B/S & deleveraging
Full impact of rights issue improves B/S & deleveraging (Rp Billion Consolidated) ASSETS 9M20 FY19 LIABILITIES & STOCKHOLDERS' EQUITY 9M20 FY19 Current Assets Current Liabilities Cash & Cash Equivalent 3,717 4,685 Bank Loan 1,652 747 Investments 8,059 7,731 Other Debt - Non Bank 69 82 Account Receiv
Slide 24: Debt maturity profile
Debt maturity profile Debt breakdown Debt maturity Profile (as of 3Q20) Coupon rate Coupon rate $ million 8.125% pa 6.75% pa 9% 450 420.0 417.0 400 350 300 91% 250 200 150 $ Bonds Rp Bank Loans 100 71.5 50 34.4 34.4 0.0 1.1 0.0 0.0 0% 0 2020 2021 2022 2023 2024 2025 2026 Rp Loans (Local) Bonds (in $
Slide 25: 9M20 Revenues grew slightly by 0.3% due to Covid-19
9M20 Revenues grew slightly by 0.3% due to Covid-19 P&L Statement (in Rp billion) 3Q20 3Q19 Change % 9M20 9M19 Change % Total Revenues 3,249 3,087 162 5% 8,582 8,560 22 0% COGS (2,043) (1,861) (181) 10% (5,259) (5,272) 13 0% Gross Profit 1,206 1,226 (19) -2% 3,323 3,289 35 1% Operating Expenses (995
Slide 26: Highlights of Non-core items in 9M20 vs. 9M19
Highlights of Non-core items in 9M20 vs. 9M19 (Rp billion) 9M20 9M19 YoY% Comments ◼ 9M20 revenue is mainly a contribution of 1) handover of Hillcrest & Fairview tower, Revenue 8,582 8,560 0.3% and 2) recovery in hospital business in 3Q20. ◼ EBITDA was Rp682 billion higher in 9M20 because of PSAK 73
Slide 27: 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 19 28 % % 76% 24% 73% 27% 76% 24% 81 72 % % (Rp bn) 12,320 11,453 10,071 125 213 1696 8,560 8,582 1779 506 246 17
Slide 28: Balance sheet highlights
Balance sheet highlights Total assets (Rp Bn) Total capitalization (Rp Bn) 70,000 50,000 7,035 60,000 8,315 45,000 11,301 1,069 40,000 12,080 50,000 10,210 14,474 1,114 1,047 9,937 35,000 40,000 1,122 5,801 3,717 4,685 13,638 14,621 5,601 4,308 5,830 30,000 4,943 2,538 8,059 30,000 1,818 7,731 25,00
Slide 29: 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 5.1 0.5 2017 2018 2019 9M20 2017 2018 2019 9M20 Net debt / Total assets (%) Net debt / Total equity (%) 26% 52% 22% 46% 18% 34% 13% 22% 2017 2018 2019 9M20 2017 2018 2019 9M20 (1) 1H2020 EBITDA is annuali
Slide 30: 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 100% 70% 80% 75% 88% 88% 88% 71% 73% 85% 87% 59% 90% 82% 58% 68% 60% 55% 70% 80% 50% 48% 48% 60% 70% 50% 50% 60% 40% 41% 50% 40% 30%
Slide 31: Income statement details
Income statement details Property marketing sales (Rp Bn) Revenue (Rp Bn) 2,500 14,000 - 125 149 12,000 213 2,000 268 1,696 - 142 10,000 246 1,779 506 12 - 1,726 403 93 66 1,500 162 81 8,000 397 1,186 802 714 1,109 19 444 344 - 109 7,018 1,000 6,000 5,965 130 1,847 5,306 402 5,001 138 1,336 4,000 5,
Slide 32: 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 1,082 2,000 1,598 1,641 1,000 1,096 1,051 873 922 248 98 75 844 331 136 477 958 798 80 468 56 - 331 279 233 2014 2015 2016 2017 2018 2019
Slide 33: 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* 13,300 15,500 17,000 Hedged Unhedged Amount Lower Strike Upper Strike Description Maturity ($m) (Rp) (Rp) From time to time, the Company Bond 2025 420 15,000 17,500 Jan-
Slide 34: 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 35: 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 The Puri Mall Strata process has been completed. Both OJK and SGX have announced official disclosure of transaction on 31 Aug 2020. 2 As of 30 Sep 2020, LPKR has obtained bondholder’s consent in regards to Puri mall transaction wh
Slide 36: Strategic Initiatives
Spending of Rights Issue proceeds (E) Pro - (A) (C) (D) (B) Status Forma Event Announced Variance Contracted / Comments 9M20 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
Slide 37: Corporate Governance Initiatives
CORPORATE GOVERNANCE INITIATIVES
Slide 38: Corporate Governance Framework
Corporate Governance Framework MISSION Corporate Risks 1. Land Banking & 2. Real Estate Management & 3. Fund Management Real Estate Development Services Business & Investments ◼ Low Assets Turnover ◼ Profitability ◼ Development Plan ◼ Failed investment ◼ Business Efficiency to ◼ Fund Management ◼ Pr
Slide 39: Bring Value Added to Lippo
Bring Value Added to Lippo @OLIPPO Good Reputation ¢ Maintain ethical standards which provide long term value administration _ * Build investor confidence corporate committees policy & Organization Efficiency “S) ¢ Build qualified Board members ‘ accountable for efficient organization ¢ Stronger cul
Slide 40: Redefining Lippo Karawaci Governance Principles
Redefining Lippo Karawaci Governance Principles 40
Slide 41: Proposed New Governance Principles
Proposed New Governance Principles 41
Slide 42: Lippo Governance Roadmap
Lippo Governance Roadmap @2DLIPPO Creating a Climate for Change Sustain & Institute NOW . a 07 Urgency to Strong Vision & Work Plans Improve — Quick Wins Instill& Embed in Change Team Strategy & Groups Enhance - for Long Manage Culture 42
Slide 43: Subsidiaries (All)
LIPPO SUBSIDIARIES (ALL)
Slide 44: Siloam's Strategic Growth to Take Advantage of the Market Potential
44 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 Balikpapan SH Jember RSU Kelapa SH Cirebon SH Ambon Dua SH Lippo BIMC SH Lubuk SH Jambi RSU Syubbanul Cikarang Asri Sentosa SH Mampang
Slide 45: EBITDA & EBITDA Margin by Segments for 9M20
EBITDA & EBITDA Margin* by Segments for 9M20 (IDR bn) *EBITDA Margin is calculated by dividing EBITDA with NOR of each segments **Others include non-hospital units (e.g. clinics) *Contribution is calculated by dividing EBITDA from each segments by the total EBITDA for 1H20 45 *EBITDA calculation pri
Slide 46: Flagship Hospitals
46 Flagship Hospitals Land/ Year Bed Operational GPs & Centre of Name Class Region Nurses Accreditation Building Opened Capacity Beds Specialists Excellence Ownership Cardiology, SH Lippo Greater Orthopedics, B 1996 308 274 232 383 JCIA Village Jakarta Neuroscience, JCIA Emergency Cardiology, SH Keb
Slide 47: Mature Hospitals
47 Mature Hospitals Year Bed Operational GPs & Land/Building Name Class Region Nurses Centre of Excellence Accreditation Opened Capacity Beds Specialists Ownership SH Surabaya B 3. East Java 2002 160 124 158 228 Cardiology, Emergency SH Lippo Occupational Health, B 2. West Java 2002 130 98 75 155 Ci
Slide 48: Mature Hospitals (Cont'd)
48 Mature Hospitals (Cont’d) Year Bed Operation GPs & Land/Building Name Class Region Nurses Accreditation Opened Capacity al Beds Specialists Ownership RS Umum Putera C 2. West Java 2017 104 86 41 110 Bahagia Cirebon RS Hosana C 2. West Java 2017 99 74 45 79 Bekasi 3. West Nusa SH Mataram C 2017 69
Slide 49: Distinct Hospitals
Distinct Hospitals Land/Buildi Date Bed Operation GPs & Centre of Name Class Region Nurses Accreditation ng Opened Capacity al Beds Specialists Excellence Ownership SH 1. Greater C 2012 203 33 26 59 Cardiology Cinere Jakarta BIMC Tourists, C 3. Bali 2013 24 18 47 58 3rd Party Kuta Emergency BIMC Cos
Slide 50: BPJS Hospitals
BPJS Hospitals Date Bed Operational GPs & Land/Building Name Class Place Nurses Accreditation Opened Capacity Beds Specialists Ownership Greater RSUS B 2012 640 150 136 221 Jakarta SH B West Java 2014 245 224 81 265 Purwakarta East SH B Nusa 2014 329 134 69 216 Kupang Tenggara 50 50
Slide 51: Ramping Up Hospitals
Ramping Up Hospitals Date Bed Operational GPs & Land/Building Name Class Region Nurses Accreditation Opened Capacity Beds Specialists Ownership SH Buton C 4. Sulawesi 2016 140 65 32 89 3. East SH Labuan C Nusa 2016 108 95 27 71 Bajo Tenggara SH Bogor C 2. West Java 2017 246 60 57 65 RS Siloam 5. Ban
Slide 52: Ramping Up Hospitals (Cont'd)
Ramping Up Hospitals (Cont’d) Date Operational GPs & Land/Building Name Class Region Bed Capacity Nurses Accreditation Opened Beds Specialists Ownership SH Jember C 3. East Java 2018 323 50 33 44 SH 2. Central D 2018 22 17 38 26 3rd Party Semarang Java SH Palangka C 4. Kalimantan 2018 82 56 42 55 3r
Slide 53: 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 Sep 2020 Assets 5,727 11,267 9,226 12,219 14,059 Debt - 249 - 200 1,000 Liability 1,483 4,734 1,696 1,337 3,220 Equity 4,244 6,533 7,530 10,882 10,838 Return on Assets (%) 9.4% -7.3% 21.3%
Slide 54: Lippo Cikarang summary income statement
Lippo Cikarang summary income statement Revenue (Rp Bn) EBITDA (Rp Bn) 1,200 1,014 2,500 985 2,210 1,000 2,120 800 2,000 606 1,695 600 496 1,545 1,592 416 1,501 400 1,500 200 - 1,000 (200) 2015 2016 2017 2018 2019 9M20 (400) 500 (600) (800) - (768) 2015 2016 2017 2018 2019 9M20 (1,000) Marketing Sal
Slide 55: Lippo Malls
Lippo Malls Dominant position in retail development & property management, through management of 56 malls throughout Indonesia ▪ 3.5 million sqm GFA ▪ As of September 30, 2020 : Overall average occupancy 82.1% and 86% in LMIRT properties Covid-19 situation in 9M20 caused avg. rental rates to fall 42
Slide 56: Existing Network
Lippo Malls- Existing Network across Indonesia Existing Network Sumatra Kalimantan Sulawesi Area : 655,535 sqm Area : 24,852 sqm Area : 153,815 sqm NLA* : 304,833 sqm NLA* : 17,667 sqm NLA* : 82,680 sqm Occupancy : 86% Occupancy : 88% Occupancy : 77% ARR* (‘000) : Rp 66/sqm/mo ARR* (‘000) : Rp 78/sq
Slide 57: Aryaduta Hotels – Covid closures significantly impact 9M occupancy
Aryaduta Hotels – Covid closures significantly impact 9M occupancy Aryaduta Hotel Aryaduta Hotel Imperial Aryaduta Aryaduta Hotel Aryaduta Hotel Aryaduta Hotel Jakarta Pekanbaru* Hotel & Country Club, LK* Medan Manado Kuta Bali Occupancy rate 31.6% 71.9% 76.9% 29.0% 19.3% 19.0% Avg room rate (Rp '00
Slide 58: Hotels – Severely impacted by Covid-19 Pandemic
Hotels – Severely impacted by Covid-19 Pandemic Tourism industry is a key priority of the Government and benefits from favourable initiatives Average room rate(1) Number of Rooms 2016 – 9M20 2016 – 9M20 IDR ‘000 per room per day 2,200 800 697 686 2,144 2,144 2,144 2,144 700 656 2,150 600 566 2,100 5
Slide 59: Lippo Malls REIT – Manages 21 retail malls and 7 retail spaces
Lippo Malls REIT – Manages 21 retail malls and 7 retail spaces S$ Millions 9M20 9M19 Y-O-Y FY19 FY18 Y-O-Y Gross Rental Income (GRI) 64.5 115.7 -44.3% 155.3 155.2 0.1% Total Gross Revenue 121.2 203.4 -40.4% 273.0 230.3 18.5% Net Property Income (NPI) 65.7 128.6 -48.9% 176.2 165.0 6.8% Distributable
Slide 60: Meikarta
LIPPO MEIKARTA
Slide 61: Strategic region for growth – Between Jakarta & Bandung
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 62: 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 63: Corporate Data
LIPPO CORPORATE DATA
Slide 64: 9M20 Shareholder Structure
9M20 Shareholder Structure Lippo Related Companies Public < 5% 58.9% 41.1% No of Floating Shares : 70,572,913,869 (excl. Treasury Shares) 55.4% 84.0% 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 Cikarang
Slide 65: 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 66: 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 Anand Kumar George Raymond Zage III Kin Chan Anangga W. Roosdiono Independent President Commissioner Commissioner Commissioner Independent
Slide 67: Appendix
LIPPO APPENDIX
Slide 68: 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 68
Slide 69: Nationwide presence across Indonesia creates network effect
Nationwide presence across Indonesia creates network effect Business segment Growth metrics Cummulative Marketing Sales Sumatra Kalimantan Sulawesi(4) (Rp Bn)1) 20,199 5 12 2 1 1 4 Property 4.9x Development 3 4 2 4,115 2013 9M20 # of malls under management 56 Kalimantan 34 1.6X Sumatra Lifestyle Mal
Slide 70: 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 284 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 71: 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 72: 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 73: Regulations becoming more conducive to growth
Regulations becoming more conducive to growth Property Type Old Regulation New Regulation Last year the regulators: 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 be
Slide 74: Foreign ownership remains a challenge
Foreign ownership remains a challenge 74
Slide 75: Overview of Jakarta's Condominium market
Overview of Jakarta’s Condominium market Condominium Market Overview 80,000 80% 1Q20 SALES RATE BY GRADE 75% 70,000 72% 30,000 100% 71% 60,000 67% 70% 25,000 80% 64% 63% 62% 66% 64% 50,000 61% 60% 60% 20,000 Units 58% Units 60% 40,000 60% 15,000 30,000 51% 40% 10,000 20,000 50% 5,000 20% 10,000 - 40
Slide 76: 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% 150,000 85% Sqm 100,000 80% 75% 50,000 70% 0 65% -50,000 60% Net absorption New Supply Occupancy rate CBD Office Overview OCCUPANCY BY GRA
Slide 77: 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 78: LPKR's trading performance
LPKR’s trading performance LPKR historical Price / NAV per share post global financial crisis Rp 1,600 1,400 1,200 1,000 800 600 400 200 - 04-12 01-19 01-10 04-10 07-10 10-10 01-11 04-11 07-11 10-11 01-12 07-12 10-12 01-13 04-13 07-13 10-13 01-14 04-14 07-14 10-14 01-15 04-15 07-15 10-15 01-16 04-16
Slide 79: Notes:
Notes:
Slide 80: Notes:
Notes:
Slide 81: Investor Relations
Investor Relations Bret Ginesky Head of Investor Relations : bret.ginesky@lippokarawaci.co.id : +62 21 25669078 : www.lippokarawaci.co.id