Pt Surya Semesta Internusa Tbk · IDX:SSIA
Pt Surya Semesta Internusa Tbk — 9M 2018 Earnings Presentation
56 slides from Pt Surya Semesta Internusa Tbk's earnings presentation, Feb 14, 2019
Slide 1: Review Nine Month 2018
PT SURYA SEMESTA INTERNUSA TBK (“SSIA”) Review Nine Month 2018 www.suryainternusa.com 0
Slide 2: Table of Contents
Table of Contents Surya Semesta Internusa in Summary Review of Business Segments • Milestone • Major Subsidiaries, PROPERTY Shareholders & Management • PT Suryacipta Swadaya (“SCS”) • Investment Portfolio • PT SLP SURYA TICON INTERNUSA (“SLP”) • Strategic Roadmap • PT TCP Internusa (“TCP”) • Indones
Slide 3: Surya Semesta Internusa in Summary
Surya Semesta Internusa in Summary 2
Slide 4: PT Surya Semesta Internusa Tbk milestones
PT Surya Semesta Internusa Tbk Operating track record in property sector can be traced back to over 40 2017 years in early 1970s Significant growth since IPO 2014 Divestmet – Raised over IDR 545 billion equity(1) Cikopo Palimanan Acquired location – Raised over IDR 1,600 billion in debt 2012 p
Slide 5: Company Highlights
Surya Semesta Internusa in Summary Company Highlights Shareholding Structure 9.4% Established and commenced operations in 1971, SSIA’s primary 7.9% businesses are in construction, property and hospitality sectors PT Arman Investments Utama PT Persada Capital Investama 6.3% PT Interpid Investmets L
Slide 6: Board of Commissioners and Board of Directors
Board of Commissioners >35 Years >50 Years >50 Years >30 Years >35 Years >20 Years Experience Experience Experience Experience Experience Experience Hagianto Kumala Emil Salim Royanto Rizal William Jusman Steen Dahl Poulsen Crescento Hermawan President Commissioner Vice President Commissioner Commis
Slide 7: Corporate Structure and Key Projects
Corporate Structure and Key Projects PT Surya Semesta Internusa Tbk Market cap: IDR 2.3tn / US$ 153mn 100% 50% 100% 100% 65.4% 22.7%(1) 100% 86.8% 100% PT Nusa Raya Cipta PT SLP PT Lintas PT Ungasan PT Suryalaya PT Surya PT Suryacipta PT TCP PT Sitiagung Tbk SURYA TICON Marga Semesta Anindita Intern
Slide 8: Geographical Presence Across Indonesia
Geographical Presence Across Indonesia Presence in Twelve Indonesian Cities Medan Pekanbaru Subang Karawang Regional office for Nusa Raya Cikopo-Palimanan Suryacipta City of Industry (1,400ha) BATIQA Hotel (Business Hotel, Cipta (“NRCA”) Toll Road – divested on 8 May 3-star, 133 rooms) - Gra
Slide 9: Strategic Roadmap
Strategic Roadmap Vision: To be the most a reliable, trusted and respected Indonesia property, construction and hospitality group of companies Continued focus on the construction and development of 1 Indonesian properties Prudent land banking strategy to deliver sustainable and 2 superior profit mar
Slide 10: Indonesia Economic Indicator
Indonesia Economic Indicator Economic Growth (%YoY) Exchange Rate (Rp/US$) 7.0% 15,500 6.5% 14,500 6.0% 13,500 5.5% 12,500 5.0% 11,500 4.5% 10,500 4.0% 9,500 Inflation BI Rate 10.0% 8.0% 9.0% 7.5% 8.0% 7.0% 7.0% 6.5% 6.0% 6.0% 5.0% 5.5% 4.0% 5.0% 3.0% 4.5% 2.0% 4.0% Source: Bank Indonesia, Indonesia
Slide 11: Revenue and EBITDA By Business Segments for 9M18
Revenue and EBITDA By Business Segments for 9M18 Revenue Across Business Segments EBITDA Across Business Segments (9M2018) (9M2018) 8% 14% 22% 47% 39% 70% Property Construction Hospitality Property Constrution Hospitality 10
Slide 12: 9M18 Financial Highlights
9M18 Financial Highlights Consolidated Revenue Gross Profit (9M17 vs 9M18, IDR Billions) (9M17 vs 9M18, IDR Billions) 2,659 653 2,356 626 9M17A 9M18A 9M17A 9M18A EBITDA Net Income (9M17 vs 9M18, IDR Billions) (9M17 vs 9M18, IDR Billions) 287 214 1,229 -66 9M17A 9M18A 9M17A 9M18A 11
Slide 13: 9M18 Financial Highlights by segment
9M18 Financial Highlights Property Segment Revenue (9M17 vs 9M18, IDR Billions) 311 216 9M17A 9M18A Construction Segment Revenue Hospitality Segment Revenue (9M17 vs 9M18, IDR Billions) (9M17 vs 118, IDR Billions) 1,849 593 1,504 540 9M17A 9M18A 9M17A 9M18A 12
Slide 14: Consolidated Revenue and Recurring Revenue
Consolidated Revenue (2013-2017, IDR Billions) 4,868 4,583 4,464 655 580 626 3,797 3,274 678 697 2,659 2,843 2,356 3517 593 3,243 540 2,460 2,164 1,504 1,849 1,159 596 692 659 412 311 216 2013A 2014A 2015A 2016A 2017A 9M17A 9M18A Property Construction Hospitality Others Recurring Revenue(1) (2013-20
Slide 15: Gross Margins by segment
Gross Margins Hotel Gross Margins % Property Gross Margins % 100% 70% 80% 62.1% 67.2% 65.6% 63.8% 63.4% 64.0% 60% 60% 57.2% 55.7% 40% 50% 48.7% 20% 0% 2014A 2015A 2016A 2017A 9M18A 40% 35.3% Construction Gross Margins(1) % 30% 15% 20% 10.2% 9.9% 10% 9.1% 9.0% 9.4% 10% 5% 0% 0% 2014A 2015A 2016A 2017
Slide 16: Consolidated Operating Results
Financial Highlights Consolidated Operating Results (in IDR Billions) 2013 2014 2015 2016 2017 9M17 9M18 Revenue 4,583 4,464 4,868 3,797 3,274 2,356 2,658 Revenue Growth 29% ‐3% 9% ‐22% ‐14% ‐22% 13% Gross Profit 1,320 1,054 1,179 1,069 864 653 626 Gross Profit Margin 29% 24% 24% 28% 26% 28% 24% EBI
Slide 17: Consolidated Revenue by Business Segment
Financial Highlights Consolidated Revenue by Business Segment (in IDR Billions) 2013 2014 2015 2016 2017 9M17 9M18 Property 1,159 596 692 659 412 311 216 Segment percentage 25% 13% 14% 17% 13% 13% 8% Construction 2,843 3,243 3,517 2,460 2,164 1,504 1,849 Segment percentage 62% 73% 72% 65% 66% 64% 70
Slide 18: Consolidated EBITDA by Business Segment
Financial Highlights Consolidated EBITDA by Business Segment (n IDR Billions) 2013 2014 2015 2016 2017 9M17 9M18 Property 647 290 379 329 149 111 39 Segment percentage 63% 36% 48% 54% 37% 39% 18% Construction 240 386 344 207 165 97 115 Segment percentage 23% 49% 43% 34% 41% 34% 54% Hospitality 179 1
Slide 19: Consolidated Net Profit by Business Segment
Financial Highlights Consolidated Net Profit by Business Segment (in IDR Billions) 2013 2014 2015 2016(1) 2017(1) 9M17(1) 9M18(1) Property 630 245 370 245 89 73 22 Segment percentage 91% 59% 122% 392% 8% 6% ‐33% Construction 128 194 129 78 106 71 47 Segment percentage 19% 47% 43% 125% 9% 6% ‐71% Hos
Slide 20: Consolidated Balance Sheet
Financial Highlights Consolidated Balance Sheet In IDR Billions 2013 2014 2015 2016 2017 9M18 Current Assets 3,719 2,901 2,900 3,381 5,085 3,557 Cash & ST Investments 1,725 1,176 949 1,545 1,180 1,615 Inventories 459 351 476 392 415 464 Other‐Current Assets 1,535 1,374 1,475 1,444 3,491 1,477 Non‐Cu
Slide 21: Key Performance Ratios
Financial Highlights Key Performance Ratios 2013 2014 2015 2016 2017 9M18 Bank/Third parties Loan IDR denominated in IDR Billions 1,279 1,279 1,377 2,456 2,270 1,556 US$ denominated in US$ Millions 3.2 ‐ ‐ ‐ ‐ ‐ Total Debt in IDR Billions 1,318 1,279 1,377 2,456 2,270 1,556 Debt to Equity Ratio 51%
Slide 22: Review of Business Segments
Review of Business Segments 21
Slide 23: Property
PROPERTY - PT Suryacipta Swadaya (“SCS”) - PT SLP SURYA TICON INTERNUSA(“SLP”) - PT TCP Internusa (“TCP”) - PT Sitiagung Makmur (“SAM”) 22
Slide 24: FDI and DDI Realization vs Industrial Land Sales in West Java
Foreign Direct Investment and Domestic Direct Investment Realization (LHS) vs Statistic of Industrial Land Sales in West Java Area in (RHS) 60 500 51.8 450 50 440 41.7 43.6 400 40.9 348 38.4 39.9 350 40 16.1 19.6 14.4 300 13.2 30 14.5 18.0 250 175 200 208 20 150 118 100 10 115 28.5 29.3 28.9 32.2 23
Slide 25: Industrial Sector Fundamentals
Industrial Sector Fundamentals Source: Colliers 3Q 2018 Research 24
Slide 26: Industrial Sector Fundamentals
Industrial Sector Fundamentals Source: Colliers 3Q 2018 Research 25
Slide 27: Industrial/Property Business Model
Master Plan Basic Infrastructure & Marketing Sales Sites Preparation & Finishing Land Create Build basic infrastructure Completion and acquisition masterplan Preparation of site Handover (Industrial/Property) Business Model Execute Interested Marketing Purchase customer Preparation of projects proce
Slide 28: Subang Industrial City strategically located
Subang Industrial City strategically located at • km 88 from Jakarta Trans Java Toll Road Network(1) • 51 km away from new flagship port project Patimban, West Java (initial capacity of 250k Cikopo-Palimanan TEUs and to be completed in 2019) Toll Road • 75 km from new Kertajati international airpo
Slide 29: Well-Diversified Current Tenant Mix
Well-Diversified Current Tenant Mix Tenant Landbank by Sector Tenant Landbank by Country To Jakarta Industrial Area Commercial Area Utility West Karawang Community Facilities Sold Area Interchange 17% 2% 8% 4% Jakarta – Cikampek Toll 1% Toll Road Gate 4% 3% 5% Toll To Karawang Gate East Karawang 9%
Slide 30: Suryacipta City of Industry ASP and Property Segment Revenue
Suryacipta City of Industry ASP (US$ / sqm) 200 150 128 121 120 94 103 100 0 2012A 2013A 2014A 2015A 2016A 2017A Property Business Segment Revenue (2013-2017, IDR Billions) Decrease driven by - Uncertain political 1,600 climate (elections) 1,400 - One-off dispute with 1,159 local villagers in 4Q14 1
Slide 31: Property: Industrial Estate Review
Business Segment Property: Industrial Estate Review Government support for industrialization leads to higher FDI inflow and expansion of domestic manufacturers as they have fully utilized their capacity, spurs demand for land in industrial estate Marketing Sales 2013 2014 2015(1) 2016 2017 9M17 9M18
Slide 32: Industrial Estate Revenue Breakdown
Business Segment Property: Industrial Estate Review Industrial Estate Revenue Breakdown Revenue (in IDR Billions) 2013 2014 2015 2016 2017 9M17 9M18 Land 991 420 677 439 176 139 5 Non Land 89 125 145 166 182 133 159 TOTAL 1,080 545 822 605 358 272 164 31
Slide 33: Property: Rental Property Review (SLP)
Business Segment Property: Rental Property Review • PT Surya Semesta Internusa Tbk (Indonesia) – 50% stake • MITSUI & CO., Ltd (Japan) - 25% stake • TICON Industrial Connection., Public Co Limited (Thailand) – 25% stake PT SLP SURYA TICON • Jointly acquiring 22ha land in SLP Karawang INTERNUSA (“SLP
Slide 34: Rental Property: Occupancy and Revenue
Business Segment Property: Rental Property Review • Rental properties, Graha Surya Internusa office building (GSI) and Glodok Plaza (GP) Occupancy Rate 2013 2014 2015 2016 2017 9M17 9M18 GSI 62% 0% 0% 0% 0% 0% 0% GP 88% 90% 91% 90% 85% 86% 79% Revenue (in IDR billions) 2013 2014 2015 2016 2017 9M17
Slide 35: Property: Operating Result
Financial Highlights Property : Operating Result (in IDR Billions) 2013 2014 2015 2016 2017 9M17 9M18 Revenue 1,159 596 692 659 412 311 216 Revenue Growth ‐5% ‐49% 16% ‐5% ‐37% ‐46% ‐30% Gross Profit 694 332 430 377 201 154 76 Gross Margin 60% 56% 62% 57% 49% 49% 35% EBITDA 647 290 379 329 149 111 3
Slide 36: Photos of Suryacipta City of Industry
Photos of Suryacipta City of Industry Suryacipta City of Industry Entrance Commercial Area Developement Suryacipta City of Industry Factory Toll Exit Leading to Suryacipta City of Industry 35
Slide 37: Construction - PT Nusa Raya Cipta Tbk
CONSTRUCTION - PT Nusa Raya Cipta Tbk (“NRCA”) 36
Slide 38: Construction Business Model
Appointment Delivery and Process Payment Process between Working Parties Handover Tender Invitation Final Delivery Retention And Period Payment of Retention Business Model (Construction) Tender Submission Negotiation Advance Payment Monthly Down Down Payment to (Bank Progress First Payment Payment S
Slide 39: Market Share, Profitability and Customer Profile
Largest Market Share … …and Profitability Amongst Private Companies (2012-2017, Revenue, IDR Trillions) Profit Margin (%) – 9M18 4.0 2.16 3.0 9.5% 2.94 2.0 1.80 3.03 1.0 1.21 4.3% 0.0 3.4% 2012 2013 2014 2015 2016 2017 3.2% Nusa Raya Cipta Jaya Konstruksi Total Bangun Persada Nusa Konstuksi Enjiniri
Slide 40: Construction: Nusa Raya Cipta Major Projects
Business Segment Construction : PT Nusa Raya Cipta Tbk - Major Projects New Contract Classification (in IDR billions) (in IDR Billions) 2015 2016 2017 9M17 9M18 3,180 3,024 2,811 2,841 1,429 Contract on 3% 3% 5% 6% hand ‐ beginning 3,769 3,192 3,527 3,527 4,204 2% 3% 12% 10% 11% 13% 31% Contract 8%
Slide 41: Construction: Operating Result
Business Segment Construction : Operating Result (in IDR Billions) 2013 2014 2015 2016 2017 9M17 9M18 Revenue 3,006 3,311 3,601 2,476 2,164 1,505 1,859 Revenue Growth 49% 10% 9% ‐31% ‐13% ‐23% 23% Gross Profit 251 302 324 253 215 149 175 Gross Margin 8% 9% 9% 10% 10% 10% 9% Income from JO 63 176 112
Slide 42: Construction: Balance Sheet
Financial Highlights Construction : Balance Sheet In IDR Billions 2013 2014 2015 2016 2017 9M18 Assets Cash & Cash Equivalents 351 276 338 447 657 770 Account Receivable 895 811 1,098 1,111 1,085 1,183 Project Advance 59 232 21 23 31 56 Investment Toll Road 120 120 125 125 0 0 Others 203 405 413 428
Slide 43: Construction project examples
The Branz BSD (Tangerang) Mangkuluhur (Jakarta) Ayana Komodo Resort (Labuan Bajo) PIK Mall (Jakarta) Ciputra World (Jakarta) Hotel and Apartment Tentrem (Semarang) 42
Slide 44: Hospitality
Hospitality - PT Suryalaya Anindita International (“SAI”) - PT Ungasan Semesta Resort (“USR”) - PT Surya Internusa Hotels (“SIH”) 43
Slide 45: Jakarta Hotel Market Fundamentals
Jakarta Hotel Market Fundamentals Source: Colliers 3Q 2018 Research & STR Global 44
Slide 46: Bali Hotel Market Fundamentals
Bali Hotel Market Fundamentals Source: Colliers 3Q 2018 Research & STR Global 45
Slide 47: Hotel Revenue, Occupancy Rate and RevPAR
Revenue Occupancy Rate (2013-2017, IDR Billions) (2013-9M18) Opened Six BATIQA Hotels by 2016(1) 90% 80.3% 80% 70% 61.7%(2) 60% 60.9% 55.3% 50% 678 697 40% 655 48.7% 30% 626 80 32 66 20% 576 14 2013 2014 2015 2016 2017 9M18 144 162 151 Gran Melia Melia Bali Banyan Tree BATIQA 155 124 Room RevPar (3)
Slide 48: Hospitality Business ARR and RevPAR
Hospitality Business ARR ($) 2013 2014 2015 2016 2017 9M17 9M18 GMJ 122 117 117 109 103 103 96 MBH 108 107 96 94 101 99 108 BTUR 547 527 487 442 466 467 471 BATIQA (Rp) N/A 547,355 527,990 303,507 300,366 296,373 331,873 Room RevPAR ($) 2013 2014 2015 2016 2017 9M17 9M18 GMJ 66 56 59 50 46 45 47 MBH
Slide 49: Hospitality: Operating Result
Business Segment Hospitality : Operating Result (in IDR Billions) 2013 2014 2015 2016 2017 9M17 9M18 Revenue 580 626 655 678 697 540 593 Revenue Growth 23% 8% 5% 3% 3% 6% 10% Gross Profit 390 421 430 432 441 349 380 Gross Margin 67% 67% 66% 64% 63% 65% 64% EBITDA 179 170 145 145 147 128 139 EBITDA M
Slide 50: Photos of Gran Melia Jakarta
Photos of Gran Melia Jakarta Café Gran Via Café Gran Via Guest Room Lobby 49
Slide 51: Photos of Melia Bali Hotel
Photos of Melia Bali Hotel Villa Main Pool Lobby Hotel Family Suite Room 50
Slide 52: Photos of Banyan Tree Ungasan Resort
Photos of Banyan Tree Ungasan Resort Sanctuary Villa Cliff Edge Villa Ju-Ma-Na terrace The White Dove Wedding Venue Sanctuary Villa Cliff Edge (jetpool) Swimming Pool – Sanctuary Villa 51
Slide 53: Photos of BATIQA Hotels
Photos of BATIQA Hotels Suite Room FRESQA Bistro Exterior view of BATIQA Hotel Cirebon Lobby Meeting Room 52
Slide 54: Strategic partners
Industrial Partner Industrial Partner Industrial Partner Hotel Partner Hotel Partner Trans-Java Toll Road network Trans-Java Toll Road network Country Japan Japan Thailand Spain Singapore Indonesia Malaysia Business One of Japan’s major One of the most Develops and provides One of Spain’s le
Slide 55: Thank You
suryainternusa Thank You INDONESIA 54
Slide 56: Disclaimer
These materials have been prepared by PT Surya Semesta Internusa Tbk (the “Company”, “SSIA”) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented
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