Pt Pakuwon Jati Tbk · IDX:PWON
Pt Pakuwon Jati Tbk — H1 2019 Earnings Presentation
59 slides from Pt Pakuwon Jati Tbk's earnings presentation, 2019
Slide 1: Results Presentation – 1H 2019
Results Presentation – 1H 2019
Slide 2: Disclaimer
Disclaimer By attending this presentation, you are agreeing to be bound by the restrictions set out below. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. The information and opinions contained in this presentation are intended solely for your
Slide 3: Table of contents
Table of contents Section 1 Results summary 3 Section 2 Business summary 7 Section 3 Growth & strategy 13 Section 4 Capital management 17 Appendix A Company overview 21 Appendix B PT Pakuwon Permai acquisition 42 Appendix C Land bank 46 Appendix D Healthcare & Hospital expansion 54 Appendix E Senior
Slide 4: Result summary
Section 1 Result summary SSere= = =e === =- : mo a fI PT PAKUWON JATI
Slide 5: Results summary
Results summary (Rp bn unless otherwise stated) 1H 2019 1H 2018 Variance Comments Revenue 3,505 3,377 +3.8% 7% increase in recurring revenues and 1% increase in development revenue recognition. Pakuwon Permai contributed Rp 1,352bn (39%) of revenues. 1 2,021 1,968 +2.7% Gross Profit Gross Profit Mar
Slide 6: Results breakdown
Results breakdown Revenue by segment (1H 2019) Revenue by project (1H 2019) Revenue by geography (1H 2019) Pakuwon Grand Office City Hotel & Pakuwon leasing 4.9% Serviced 3.1% 3.9% Kota Apartments Royal Plaza Kasablanka 7.6% 1.4% 25.1% Jakarta 38.7% Condo sales 41.3% Gandaria Pakuwon City Mall 11.3%
Slide 7: Key recent developments
Key recent developments Received in June 2018 ratings upgrade from S&P and Fitch to BB, stable outlook Opened Tunjungan Plaza Phase 6 retail mall on 23 September 2017 Received in July 2017 ratings upgrade from Moody’s to Ba2, stable outlook Opened Pakuwon Mall Phase 2 & 3 on 22 February 2017
Slide 8: Business summary
Section 2 Business summary SSere= = =e === =- : mo a fI PT PAKUWON JATI
Slide 9: Residential market update
Residential market update Residential sales in prime locations by established developers remain resilient despite moderate softening in broader non-prime locations ASPs of condos in Jakarta (Rpm psm) ASPs of condos in Surabaya (Rpm psm) 60 40 50 35 30 40 25 30 20 20 15 10 10 5 0 0 1Q 2014 3Q 2014 4Q
Slide 10: Residential development – Strong take-up of existing projects
Residential development – Strong take-up of existing projects Strong pre-sales across all residential and office projects underpins future growth Historical Pre-sales (Rp bn) Pre-sales and construction update (excludes residential township) Superblock / GSA Project name Segment (sqm) % Sold Progress
Slide 11: Retail market update
Retail market update Retail property market helped by limited new supply in Jakarta and Surabaya – driving up occupancy and rents Average asking base rental rates in Jakarta Cumulative retail supply in Surabaya (sqm) (Rp'000 psm / month) Very limited new supply from 2019 - 2021 CBD 900 1,400 800 1,2
Slide 12: Retail malls – Continued strong leasing interest
Retail malls – Continued strong leasing interest Wide appeal of PWON's malls demonstrated by consistently high occupancy Historical Occupancy Lease Expiry Profile (NLA breakdown) 3% 6% 11% 14% 25% 41% • Maintained strong occupancy across portfolio (sqm) 2014 2015 2016 2017 2018 1H 2019 300,000 1 Tun
Slide 13: Office & hotel – Stable rents and rising RevPAR
Office & hotel – Stable rents and rising RevPAR Offices and hotels further diversify income base and increase recurring income, while complementing existing superblocks Average Office Rental (before service charge) Hotel RevPAR 1H 2018 - 1H 1H 2018 - 1H (Rp'000 psm / month) 2014 2015 2016 2017 2018
Slide 14: Growth & strategy
Section 3 Growth & strategy 13
Slide 15: Long term growth strategy on track
Long term growth strategy on track Target 50/50 recurring/development revenue mix over the long term Leverage on strength in retail malls and superblock developments Continue to dominate Surabaya and expand Jakarta portfolio Actively replenish land bank + acquire land around existing project
Slide 16: Growth of recurring income portfolio
Growth of recurring income portfolio Plans to continue growing retail, office, and hotel portfolio to maintain recurring income mix Retail Mall NLA Growth Office Leasing NLA Growth Hotel Room Growth 800 722 180 2,500 159 700 160 646 2100 140 2,000 600 531 120 500 1,500 100 1250 83 400 80 981 958 958
Slide 17: Land bank – Sufficient for >10 years of development
Land bank – Sufficient for >10 years of development 444.5 hectares of land bank to sustain growth and high margins, without being a drag on balance sheet and return on capital Land under Additional Total land Location Project development (ha) land bank (ha) bank (ha) Kota Kasablanka 2.7 3.8 6.5 Sout
Slide 18: Capital management
Section 4 Capital management 17
Slide 19: Strong financial growth and optimized capital structure
Strong financial growth and optimized capital structure Revenue (Rp bn) Adjusted EBITDA1 (Rp bn) 58% 56% 55% 57% 56% 8,000 4,200 56% 60% 7,081 54% 3,900 7,000 3,600 50% 5,749 3,300 6,000 3,000 4,625 4,841 3,613 2,700 40% 5,000 2,400 3,872 2,763 4,000 3,505 2,100 30% 2,288 3,377 3,927 2,314 1,800 3,0
Slide 20: Strong financial position and prudent balance sheet
Strong financial position and prudent balance sheet (Rp bn unless otherwise stated) As of 1H 2019 As of 1H 2018 Cash 4,895 4,320 Total Debt1 5,249 5,778 Net Debt 355 1,458 Net Debt / Equity 2% 11% Net Debt / Assets 1% 6% Fixed Charge Coverage Ratio (FCCR)2 5.6x 5.5x % Fixed Rate Debt 67% 62% Credit
Slide 21: Well balanced debt maturity profile
Well balanced debt maturity profile Average debt maturity of 3.9 years, with cost of debt between 6.1% – 9.85% p.a.1 Debt Maturity Profile (Rp bn) As % of 5% 9% 6% 17% 1% 0% 7% 64% total 4,000 3,500 3,000 2,500 2,000 3,535 1,500 1,000 500 915 301 351 398 50 0 - 1H 2019 3Q-4Q 2019 2020 2021 2022 2023
Slide 22: Company overview
Appendix A Company overview 21
Slide 23: What sets Pakuwon Jati apart
What sets Pakuwon Jati apart The largest retail mall owner amongst Indonesian developers A well-balanced portfolio of development and investment properties Growth and value creation from identified development pipeline Strategically located in Indonesia’s two largest and wealthiest metropoli
Slide 24: Portfolio overview
Portfolio overview Strategically located superblocks and townships in Jakarta and Surabaya Kota Kasablanka Gandaria City Tunjungan City Location Jakarta Fringe CBD South Jakarta Surabaya CBD Description 12.9ha located right next to Jakarta’s Golden 3rd largest superblock in South Jakarta, sitting on
Slide 25: Portfolio overview (cont'd)
Portfolio overview (cont'd) Strategically located superblocks and townships in Jakarta and Surabaya Pakuwon Mall Royal Plaza Blok M Plaza Somerset Berlian Location West Surabaya South Surabaya South Jakarta South Jakarta Description 14.6ha Superblock located in West Surabaya’s Mid-market strata reta
Slide 26: Portfolio overview (cont'd)
Portfolio overview (cont'd) Strategically located superblocks and townships in Jakarta and Surabaya Pakuwon City Grand Pakuwon Bekasi Project Location East Surabaya West Surabaya Greater Jakarta Description Self-contained city in East Surabaya, consisting of Self contained city in West Surabaya, con
Slide 27: Project locations
Project locations Jakarta Surabaya Source: Company Data 26
Slide 28: 37 year track record and growing…
37 year track record and growing… 2016 2014 Acquired 11 ha Acquired 67.1% of land in Daan of PT Pakuwon Mogot, West 2012 Permai Jakarta and Issued US$200m opening of Completed 4 of 7.125% Senior Four Points by 2010 condos, 2 Unsecured Notes Sheraton Completed 2 offices and due 2019. Surabaya Hotel c
Slide 29: Kota Kasablanka Superblock
Kota Kasablanka Superblock 88 KASABLANKA TOWER A Office (for sale and lease) 88 KASABLANKA TOWER B GSA: 58,320 sqm Office (for lease) NLA : 31,546 sqm CASA GRANDE Condominium Kota Kasablanka GSA : 96,168 sqm Superblock Jakarta fringe CBD 12.9 ha of land area 570,500 sqm of GFA 4,500 carpark lots 2.7
Slide 30: Kota Kasablanka Phase 2
Kota Kasablanka Phase 2 CHIANTI TOWER BELLA TOWER PAKUWON TOWER Condominium Condominium Strata-Title ANGELO Office Tower TOWER Condominium Phase 1 Kota Kasablanka Phase 2 Condominium Jakarta fringe CBD and Office Tower 3 condominiums 1 office block Artist rendering 29
Slide 31: Gandaria City
Gandaria City GANDARIA 8 TOWER A Office NLA : 58,685 sqm GANDARIA HEIGHTS Condominiums GSA : 73,633 sqm Gandaria City Units : 715 Superblock South Jakarta GRAND SHERATON HOTEL Gandaria City 9.3 ha of land area 5-star hotel Rooms: 293 573,800 sqm of GFA GANDARIA CITY 4,500 carpark lots Shopping Cente
Slide 32: Gandaria City Phase 2
Gandaria City Phase 2 Phase 2: Condominium Gandaria City expansion South Jakarta Phase 1: Condominiums 1 condominium Completed projects Phase 2: 5-star hotel GRAND SHERATON HOTEL Gandaria City 5-star hotel Phase 1: GANDARIA CITY MALL Artist rendering 31
Slide 33: Tunjungan City
Tunjungan City TP5: TP RESIDENCE Condominium GSA : 29,962 sqm Tunjungan City Superblock SHERATON 5 Star Hotel Surabaya CBD Rooms: 306 TP5: FOUR POINTS Serviced apartments: 53 4-star hotel Rooms: 293 8.8 ha of land area 476,613 sqm of GFA TUNJUNGAN PLAZA MALL NLA : 103,202 sqm TP5: PAKUWON CENTER 4,2
Slide 34: Tunjungan City Phase 5 & 6
Tunjungan City Phase 5 & 6 TP6: PAKUWON TOWER Office GSA: 39,334 sqm TP6: ONE ICON Condominium GSA : 57,800 sqm Tunjungan City Phase 5&6 Surabaya CBD TP5: Mall, offices, condos, TP RESIDENCE hotel Condominium TP5: FOUR POINTS Hotel Completed projects Phase 6: TP5: Retail Mall Tunjungan City Phase 5
Slide 35: Pakuwon City Township
Pakuwon City Township Pakuwon City Pakuwon City entrance Residential Township East Surabaya <30 minutes from city center 212.9 ha township, including : • 27 ha residential and commercial center with 19 condominium towers, a 90k sqm retail mall, and a University, International and Chinese school, hos
Slide 36: Pakuwon City – East Coast Mansion
Pakuwon City – East Coast Mansion BELLA Pakuwon City TOWER 3 Condominium Residential Township Condominium GSA : 30.300 sqm East Surabaya • New projects 3 condominiums • Food and Entertaintment Center Retail Mall NLA: 20,365 sqm Artist rendering 35
Slide 37: Grand Pakuwon Township
Grand Pakuwon Township New middle to high-end gated development in the west of Surabaya poised to replicate the successful roll out of Pakuwon City Township in East Surabaya Grand Pakuwon Township West Surabaya <10 minutes from downtown Surabaya 30 minutes from City Center 164.5 ha residential towns
Slide 38: Pakuwon Mall
Pakuwon Mall At completion Pakuwon Mall will be Indonesia’s largest retail mall with direct connections to 12 condominium towers, 2 hotels and 1 serviced apartment Pakuwon Mall West Surabaya 16.9 ha of land area 960,000 sqm of GFA 4.545 carpark lots Artist rendering 37
Slide 39: Pakuwon Mall Phase 2 and 3
Pakuwon Mall Phase 2 and 3 ORCHARD WESTIN Condominium 204 rooms GSA: 27,628 sqm LA RIZ TOWER Condominium Pakuwon Mall TANGLIN GSA: 41,388 Phase 2 & 3 Condominium West Surabaya GSA: 32,291 sqm 2 Retail Mall 3 condominiums 2 hotels FOUR POINTS 316 rooms Completed projects Phase 2 Retail Mall NLA: 36,9
Slide 40: Pakuwon Mall Phase 4
Pakuwon Mall Phase 4 5-star Hotel ANDERSON 211 LA rooms VIZ TOWER BENSON Phase 2 Condominium Condominium Condominium GSA: 57,101 sqm GSA: 53.400 sqm GSA: 26.700 sqm Phase 2 Pakuwon Mall Phase 4 West Surabaya • 3 condominiums • Retail mall expansion 3-star Hotel 398 rooms Phase 4 Retail Mall Phase 2
Slide 41: Royal Plaza retail mall
Royal Plaza retail mall Royal Plaza South Surabaya 3.2 ha of land area 184,423 sqm of GFA 1,450 carpark lots 40
Slide 42: Blok M Plaza retail mall
Blok M Plaza retail mall Blok M Plaza South Jakarta 1.1 ha of land area 64,049 sqm of GFA 600 carpark lots Parking Lost Mobil 2 000 Motor 4.100 41
Slide 43: PT Pakuwon Permai acquisition
Appendix B PT Pakuwon Permai acquisition 42
Slide 44: Acquisition summary
Acquisition summary Acquisition of 67.1% of PT Pakuwon Permai ("PP") for Rp1,685bn (US$138.1m), net of cash on PP balance sheet • 67.1% of PT Pakuwon Permai ("PP"), which owns 1 superblock (retail, condos, hotel/serviced apartment) + 2 standalone retail malls + 1 standalone serviced apartment Reta
Slide 45: Acquisition shareholding structure
Acquisition shareholding structure EEMF Asian PT Pakuwon Darma PT Pakuwon Jati Developments, B.V. Vendor 32.9% 67.1% PT Pakuwon Permai (Supermal Pakuwon Indah) 75.0% 99.9% 49.0% PT Grama Pramesi Siddhi PT Dwijaya Manunggal PT Pakuwon Sentosa Abadi (Landbank, (Royal Plaza Mall) (Blok M Plaza Mall) Gr
Slide 46: Rationale for the acquisition
Rationale for the acquisition 1 • Diversify current portfolio with the addition of 1 new superblock, 2 retail malls and 1 serviced apartment In line with current strategy and core • Continued balanced mix between recurring and development income, with 23.1% increase in recurring revenue1 expertise •
Slide 47: Land bank
Appendix C Land bank SSere= = =e === =- : mo a fI PT PAKUWON JATI
Slide 48: Expansion into Greater Jakarta – Site map
Expansion into Greater Jakarta – Site map Site overview Jl. Pekayon Raya Location : Bekasi - Jakarta Land Size : 36,000 sqm 47
Slide 49: Bekasi Future Development
Bekasi Future Development 4 condominiums GSA: 118,000 sqm Bekasi Project Greater Jakarta 4-star & 3-star Hotel 1 Retail Mall 330 rooms 4 condominiums 2 hotels Retail Mall GFA: 71,000 sqm 48
Slide 50: Pakuwon Mall Phase 5 Future Development
Pakuwon Mall Phase 5 Future Development 3 condominiums GSA: 104,858 sqm Pakuwon Mall Phase 5 Project West Surabaya 3 condominiums Retail Mall GFA: 71,000 sqm 49
Slide 51: Expansion into South Jakarta CBD – Summary
Expansion into South Jakarta CBD – Summary Overview: Acquisition of land in Simatupang, South Jakarta Ownership structure -1 Pakuwon Jati ("PWON”) together with two partners acquired 4.2 hectares of land in South Jakarta for Rp.490 billion, through its joint-venture company PT Centrum Utama Prima (“
Slide 52: Expansion into South Jakarta CBD – Location map
Expansion into South Jakarta CBD – Location map Strategically located 20 minutes from Superblock Gandaria City, with direct access to TB Simatupang and Jakarta Outer Ring Road 51
Slide 53: Expansion into South Jakarta CBD – Site map
Expansion into South Jakarta CBD – Site map Site overview Jl. TB Simatupang RT002 /RW001 Location : Kebagusan Pasar Minggu Jakarta Selatan Land Size : 44,725 sqm 52
Slide 54: Expansion into West Jakarta – Site map
Expansion into West Jakarta – Site map Site overview Jl. Daan Mogot Rawa Buaya Location : Cengkareng Jakarta Barat Land Size : 110,000 sqm EXIT TOL 53
Slide 55: Healthcare & Hospital expansion
Appendix D Healthcare & Hospital expansion 54
Slide 56: Healthcare expansion - Diversifying recurring income base
Healthcare expansion - Diversifying recurring income base Overview: Acquisition of Usada Insani Hospital ("RSUI") Ownership Structure •1 Pakuwon Jati ("PWON"), through its wholly owned subsidiary PT Pakuwon Sentra Wisata (“PSW”) has acquired a 33.3% stake in PT Surya Cipta Medika ("SCM"), a Pakuwon
Slide 57: Healthcare expansion – Asset overview
Healthcare expansion – Asset overview External View Hospital Overview Location : Jl. KH. Hasyim Ashari No. 24, Cipondoh – Tangerang Established : September 1991 Land Size : 14,030 sqm Building size : 17,000 sqm Parking : 150 cars; 300 motorcycles Beds and Rooms Beds : 350; Bed Occupancy Ratio (BOR)
Slide 58: Senior Unsecured Notes due 2024
Appendix E Senior Unsecured Notes due 2024 57
Slide 59: Offering Summary
Offering Summary Notes Offered US$250mn aggregate principal amount of 5% Senior Unsecured Notes due 2024 (the “Notes”) Maturity Date Feb 14, 2024 Interest The Notes will bear interest from and including Feb 14, 2017, payable semi-annually in arrears Issuer Ratings Ba3, stable (Moody's) / BB-, stable