PT Lippo Karawaci Tbk · IDX:LPKR
PT Lippo Karawaci Tbk — 9M23 Earnings Presentation
56 slides from PT Lippo Karawaci Tbk's earnings presentation, Oct 30, 2023
Slide 1: PT Lippo Karawaci Tbk 9M23 Corporate Presentation
PT Lippo Karawaci Tbk 9M23 Corporate Presentation 30 October 2023
Slide 2: Forward looking statements
Forward looking statements Certain statements in this release are or may be forward-looking statements. These statements typically contain words such as "will", "expects" and "anticipates" and words of similar import. By their nature, forward looking statements involve a number of risks and uncertai
Slide 3: Introduction and Background
INTRODUCTION AND BACKGROUND
Slide 4: Our Values, Mission and Vision
Our Values Mission Values AGILITY 1 To win the hearts and minds of our customers through quality homes, ▪ Thrive in dynamic environments and anticipate change. healthcare and lifestyle offerings, as ▪ Innovate and capitalize on new opportunities. well as people-centric services. Vision CUSTOMER FOCU
Slide 5: Our Company
Our Company Indonesia's Leading Integrated Real Estate Platform Widespread presence in 56 cities and 26 provinces – Scale, Integration and Financial Discipline: across Indonesia #1 by Total Revenue: IDR 15tn in FY22 Revenue breakdown: 66% Healthcare, 26% Real #1 by Recurring Revenue: IDR 11tn in FY2
Slide 6: 9M23 Key Highlights
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Slide 7: 9M23 Key Highlights
9M23 Key Highlights LPKR maintained positive NPAT of IDR 788bn in 9M23, supported by 18% YoY Revenue growth and 41% YoY EBITDA growth. Real Estate Healthcare Lifestyle ▪ Stable 9M23 marketing sales of IDR ▪ Siloam continued to improve on its ▪ Lifestyle segment’s revenue improved by 3.36tn with 3,69
Slide 8: 9M23 Financial Update
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Slide 9: Revenue and EBITDA grew by 18% and 41% YoY respectively
Revenue and EBITDA grew by 18% and 41% YoY respectively Revenue EBITDA (in IDR bn) (in IDR bn) +5% +12% +1% +18% +13% +29% -0.3% +41% 1,314 88 12,435 10,544 489 624 3,089 285 -7 2,187 9M22 Real Estate Healthcare Lifestyle 9M23 9M22 Real Estate Healthcare Lifestyle 9M23 Development Development ▪ 9M23
Slide 10: NPAT of IDR 788bn from revenue, gross profit, EBITDA and underlying NPAT growth
NPAT of IDR 788bn from 18% revenue, 22% gross profit, 41% EBITDA, and 106% underlying NPAT growth Revenue EBITDA (in IDR bn) (in IDR bn) +5% +11% +18% +41% 12,435 3,089 11,338 10,544 2,489 2,187 9M21* 9M22 9M23 9M21* 9M22 9M23 Gross profit NPAT (in IDR bn) (in IDR bn) +6% +141% +22% +106% 788 5,557
Slide 11: Positive Underlying NPAT in 3Q23 despite unrealized FX losses
LPKR continued to maintain positive Underlying NPAT in 3Q23, despite NPAT being adversely impacted by unrealized FX losses Consolidated EBITDA to NPAT EBITDA by segment (in IDR bn) (in IDR bn) Var (YoY) Var (QoQ) In IDR bn 9M23 9M22 3Q23 2Q23 Healthcare IDR % IDR % EBITDA 3,089 2,187 902 41% 1,119 1
Slide 12: Turnaround of Operating Cash Flow resulting in positive FCF
Turnaround of Operating Cash Flow resulting in positive FCF Cashflow movement (9M23) Remarks (in IDR bn) ▪ Operating Cash Flow reflected a 2,626 Operating Investing Financing 2,309 significant turnaround from -IDR 765bn in 9M22 to IDR 662bn in 9M23, mainly driven by improved 662 business operations
Slide 13: Liability Management
Liability Management 2025 Bonds | Principal Outstanding Refinancing Facility (in USD mn) 420 Type of facility : Syndicated Loan Transactions Facility type : Term loan facility in IDR (183) 237 Amount : IDR 5.25tn Interest : BI 7DRR + 2.25% margin p.a. Term : 84 months Collateral : land and building
Slide 14: Improved Debt Profile from earlier Liability Management initiative
Improved Debt Profile from earlier Liability Management initiative Debt breakdown Debt maturity Profile (in IDR bn) USD debt (bonds) IDR debt (bank loans) 3,682 3,022 46% USD debt (bonds) 54% IDR debt (bank loans) 460 529 604 191 352 2023 2024 2025 2026 2027 Historical Net Debt1 Currency Protection
Slide 15: Segment 1: Real Estate Overview
SEGMENT 1: REAL ESTATE OVERVIEW
Slide 16: Real Estate Business Highlights
Real Estate Business Highlights Property Marketing sales New projects in Financial Key takeaways and development performance 3Q23 performance going forward projects sold in 9M23 Landed residential: ▪ LPKR Lippo Village: ▪ Real Estate 9M23 ▪ LPKR successfully 59 projects maintained stable 1) Cendana
Slide 17: Marketing sales momentum and land bank in key growth centers
Marketing sales momentum in the last 3 years and land bank in key growth centers provide strong foundation for future growth Historical marketing sales (in IDR bn) Land bank ▪ ~1,000 hectares of land bank in Jakarta, Greater Jakarta and 31.4% 4,964 4,900 Makassar translate to roughly IDR 155tn in gr
Slide 18: 9M23 marketing sales highlights
9M23 marketing sales highlights 9M23 Marketing sales breakdown in Lippo Village 9M23 Marketing sales breakdown in Lippo Cikarang Marketing sales in Lippo Village were mainly driven by landed housing, Marketing sales in Lippo Cikarang were mainly driven by landed housing, accounting for 79% of the to
Slide 19: New property development project highlights
New property development project highlights In 3Q23, LPKR successfully introduced 5 new products, including 2 landed housing and 3 commercial shophouse products. Landed housing Commercial shophouses Cendana Sold 50 units – 55% The Hive @ Sold 25 units – 63% Gard’n take up rate¹ Essence take up rate
Slide 20: 9M23 project handover highlights
9M23 project handover highlights Real Estate’s 9M23 revenue improved by 18% YoY to IDR 3.3tn, mainly driven by timely handover of landed housing and shophouses. Cendana 60 units – HVDHC 10 units – The HIVE 15 units – Icon 100% Manado 95% @ 94% Premiere completed completed Himalaya completed 60 units
Slide 21: Product Focus: Landed housing (Cendana and The Colony Series)
Product Focus: Landed housing (Cendana and The Colony Series) Cendana Series (First-Home Owners) The Colony Series (Exquisite Designer Homes) Cluster name : Cendana Gard’n Vista Serene Cluster name : The Colony @ Himalaya Handover period : 18 months + 6 months grace period Handover period : 18 month
Slide 22: Product Focus: Commercial shophouse (The Hive Series)
Product Focus: Commercial shophouse (The Hive Series) The Hive Series @ Lippo Cikarang The Hive Series @Lippo Village Cluster name : The Hive @Cosmo Cluster name : The Hive @ Essence Handover period : 15 months + 6 months grace period Handover period : 18 months + 6 months grace period Typical size
Slide 23: Product Focus: Mid-rise (URBNx) and Low-rise (Newville)
Product Focus: Mid-rise (URBNx Series), and Low-rise (Newville Series) Newville (Low-Rise Apartment) URBNx (Mid-Rise Apartment) Area : Lippo Cikarang – East Jakarta Area : Lippo Karawaci – West Jakarta Typical floors :5 Location : In front of UPH – school of medicine Handover period: 30 months + gra
Slide 24: Segment 2: Healthcare Overview
SEGMENT 2: HEALTHCARE OVERVIEW
Slide 25: Record 3Q23 earnings supported by sustained post-covid growth
Record 3Q23 earnings supported by 5 quarters of sustained post-covid growth Revenue¹ (in IDR bn) Revenue¹ EBITDA¹ +4.6% IDR6.37tn IDR1.95tn +12.1% in 9M23 in 9M23 1,501 2,077 1,747 1,685 1,951 2,010 2,047 2,040 2,287 1,340 18.4%| 17.2% 38.9% | 28.9% 4Q19 3Q20 3Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23
Slide 26: Industry leading revenue intensity driven by high complexity clinical programs
Industry leading revenue intensity driven by high complexity clinical programs Average Revenue per Occupied Beds (in IDR bn) Average Revenue per Occupied Beds (in IDR bn) +14.4% Hospital A Hospital B 3.8 3.3 3.0 1.9 2.2 1.3 +6.4% 0.8 0.8 0.9 0.5 0.3 2019 2020 2021 2022 1Q23 2Q23 3Q23 2022 2Q23 Avera
Slide 27: Supported by stable and sustained growth in operations
Supported by stable and sustained growth in operations Operational Results per Quarter – Inpatient Operational Results per Quarter – OPD to IPD Admissions Operational Results per Quarter – Occupancy Rate Conversion Rate (in 000) (in %) (in %) 80 64.4% 65.2% 64.5% 68.2% 3.2% 3.1% +12% 65.0% 2.9% 3.0%
Slide 28: Continual drive to improve margins quarter on quarter
Continual drive to improve margins quarter on quarter Drugs & clinical supplies (IDR bn, % to Revenue) Operating expenses (IDR bn, % to Revenue) 700 35.1% 40 700 36.1% 40 30.7% 35 33.0% 31.8% 600 30.2% 29.8% 29.2% 29.0% 28.6% 28.5% 600 30.7% 31.5% 29.5% 28.4% 28.8% 500 30 30 500 25 400 400 651 20 65
Slide 29: Private Payer Group continue to become majority of total revenue
Private Payer Group continue to become majority of total revenue % Contribution to Revenue 9M22 vs 9M23 0.9% 0.02% Private (OPE, Corp + Insurance) BPJS MoH* 17.1% 17.80% Private patients’ (OPE, Corporate & Insurance) 82.20% revenue contribution maintained above 80% of total 81.5% Revenue 9M22 9M23 P
Slide 30: Sustained Growth from High Complexity Clinical Programs
Sustained Growth from High Complexity Clinical Programs (Cardiology, Oncology, Neurology, Gastro, Orthopedics) C.O.N.G.O Throughput (‘000) 77 81 68 74 73 66 45 50 36 42 31 32 11 10 10 1Q23 2Q23 3Q23 1Q23 2Q23 3Q23 1Q23 2Q23 3Q23 1Q23 2Q23 3Q23 1Q23 2Q23 3Q23 C.O.N.G.O ARPD (Rp mn) 3.3 3.5 3.3 3.5 3.
Slide 31: Siloam Hospitals Expansion Progress
Siloam Hospitals Expansion Progress Siloam Hospitals Lippo Village Accelerator Siloam Hospitals Makassar Expected Expected opening at opening 1Q24 at 3Q24 Sept 2023 54.67% Sept 2023 40.72% Siloam Hospitals New Gubeng Surabaya Siloam Hospitals Sentosa Bekasi Expected Expected Opening opening at 1Q25
Slide 32: Siloam's achievements in digital transformation
Siloam’s achievements in digital transformation Enhancing patient’s experience to be more seamless Digitized Patient Voice Patient Booking Channels Resolved 80% Siloam has achieved ▪ Seamless lab and radiology booking complaints in 24 hours 532,285 experience through MySiloam apps and website with S
Slide 33: Hospital customer segmentation, business strategy and value proposition
Siloam has adopted a new method for classifying our hospitals, based on each hospital’s customer segmentation, business strategy and value proposition Flagship Mature Distinct BPJS Ramping Up Well established hospitals with high Profitable with high potential for Operates in distinct niche markets M
Slide 34: Segment 3: Lifestyle Overview
SEGMENT 3: LIFESTYLE OVERVIEW
Slide 35: Lifestyle segment consists of mall and hotel businesses
The lifestyle segment primarily consists of its mall and hotel businesses Malls business highlights Hotels business highlights ▪ 9M23 mall revenue¹ increased by 12% YoY to IDR 410bn; ▪ 9M23 Hotel revenue¹ increased by 23% YoY to IDR 317bn, propelled by better Malls footfall traffic during Lebaran an
Slide 36: Malls and hotels 9M23 revenue up 12% and 23% YoY
Malls and hotels businesses continue to benefit from post-covid recovery with 9M23 revenue increased by 12% and 23% YoY respectively Malls revenue¹ Hotels revenue¹ (in IDR bn) (in IDR bn) +47% +37% +12% +23% 410 317 368 257 190 170 9M21 9M22 9M23 9M21 9M22 9M23 Malls EBITDA¹ Hotels EBITDA¹ (in IDR b
Slide 37: Stable YoY growth in malls and hotels key operational metrics
Stable YoY growth in malls and hotels’ key operational metrics in 9M23, catching up to pre-covid level Consistent YoY growth of malls visitors¹ Hotels occupancy only 7% below 2019 pre-COVID (Average monthly visitors; in mn visitors) +14% +24% +4% +11% 71% 64% 66% -7% 9.9 51% 8.9 6.5 9M21 9M22 9M23 9
Slide 38: Sustainability
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Slide 39: Sustainability Strategy
Sustainability Strategy ESG Approach ESG Priorities • Fully committed to integrating sustainability in business Environment Social Governance strategy, operations, and governance structure, in line with global best practices Decarbonization roadmap Implementation of social Climate risk and and GHG i
Slide 40: Sustainability Framework & Governance
Sustainability Framework & Governance SUSTAINABILITY FRAMEWORK SUSTAINABILITY GOVERNANCE VISION Advancing the Well-Being of Indonesians at Every Stage of Life Enhancing Caring for Investing in Our Championing Quality of Life Our Environment People Best Practices Drive sustainable economic Improve re
Slide 41: 2030 Sustainability Agenda
2030 Sustainability Agenda ENHANCING QUALITY OF LIFE CARING FOR OUR ENVIRONMENT INVESTING IN OUR PEOPLE CHAMPIONING BEST PRACTICES AFFORDABLE HOUSING OPERATIONAL EMISSIONS OCCUPATIONAL HEALTH & SAFETY BUSINESS ETHICS 2030 TARGET 2022 PERFORMANCE 2022 PERFORMANCE 2030 TARGET 2022 PERFORMANCE 2030 TAR
Slide 42: 2022 Sustainability Highlights
2022 Sustainability Highlights ENHANCING QUALITY OF LIFE CARING FOR OUR ENVIRONMENT INVESTING IN OUR PEOPLE Rp 14,809B Conducted first bottom-up Developed Group-wide 64 % 40 % >170M Climate Risk Female Decarbonization 16,249 Female senior executives Indonesians served Revenue Assessment Strategy Empl
Slide 43: Social Engagement Framework
Social Engagement Framework Lippo untuk Indonesia PASTI (Pintar, Asri, Sejahtera, Tangguh, Independen) embodies the firm and bold spirit that drives our holistic advancement of Indonesia’s sustainability agenda. We are committed to enhancing our quality of life for all stakeholders in our ecosystem,
Slide 44: Green Building Certification
Green Building Certification Two of our biggest malls were awarded EDGE green building certification for sustainable design and resource efficiency Sun Plaza Medan 24% energy savings 35% water savings Rp 8.5Bio utility cost savings per year Lippo Mall Puri 21% energy savings 31% water savings Rp 9Bi
Slide 45: Looking Ahead
Looking Ahead Real Estate Healthcare Lifestyle ▪ Despite the economic uncertainty and ▪ Hospitals will be differentiated through ▪ Strong path to recovery on our Malls and higher inflation in 1Q23 and higher interest archetypes which is based on each Hotels with loosening restriction on travel rate,
Slide 46: Appendices
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Slide 47: Consolidated Statutory Statement of Profit and Loss
Consolidated Statutory Statement of Profit and Loss P&L Highlights (in IDR bn) 9M23 9M22 YoY Changes Total Revenues 12,435 10,544 18% COGS (6,986) (6,138) 14% Gross Profit 5,449 4,406 24% Operating Expenses (3,270) (3,202) 2% Operating Profit 2,179 1,204 81% Other Income & Expenses - Net 971 (1,068)
Slide 48: Consolidated Statutory Statement of Financial Position
Consolidated Statutory Statement of Financial Position Balance Sheet Highlights (in IDR bn) 9M23 9M22 9M23 9M22 ASSETS LIABILITIES & EQUITY CURRENT ASSETS CURRENT LIABILITIES Cash & Cash Equivalent 2,309 2,626 Bank Loans 2,714 2,046 Trade Accounts Receivable 2,049 1,742 Lease Liabilities 709 600 Inv
Slide 49: Consolidated Statutory Statement of Cash Flow
Consolidated Statutory Statement of Cash Flow Cash Flow Highlights (in IDR bn) 9M23 9M22 YoY Changes Cash at beginning 2,626 4,888 -46% Cash from operating activities: 662 (765) 186% Business operations 585 (11) 5362% Placement for restricted funds 77 (754) 110% Cash from investing activities: (473)
Slide 50: Cash breakdown
Cash breakdown Cash breakdown – Sep 2023 Cash breakdown – Dec 2022 13 218 (1%) 207 (9%) (8%) 17 (1%) 1,060 (46%) 1,336 1,066 (51%) 1,017 (41%) (44%) Consolidated cash: IDR 2,309bn Consolidated cash: IDR 2,626bn Holdco (incld. Subs) LPCK Holdco (incld. Subs) LPCK SILO GMTD SILO GMTD 50
Slide 51: Financial Results (9M23 vs 9M22)
Financial Results (9M23 vs 9M22) 9M23 9M22 Real Estate Healthcare Lifestyle Total Particulars Real Estate Healthcare Lifestyle Total Real Estate Healthcare Lifestyle Total Rp % Rp % Rp % Rp % Revenue 3,279 8,246 911 12,435 2,790 6,931 822 10,544 489 18% 1,314 19% 88 11% 1,891 18% Gross profit 1,493
Slide 52: Financial Results (3Q23 vs 2Q23)
Financial Results (3Q23 vs 2Q23) 3Q23 2Q23 Real Estate Healthcare Lifestyle Total Particulars Real Estate Healthcare Lifestyle Total Real Estate Healthcare Lifestyle Total Rp % Rp % Rp % Rp % Revenue 1,095 2,964 301 4,359 1,319 2,628 314 4,261 (224) -17% 336 13% (14) -4% 98 2% Gross profit 515 1,296
Slide 53: Financial Results (3Q23 vs 3Q22)
Financial Results (3Q23 vs 3Q22) 3Q23 3Q22 Real Estate Healthcare Lifestyle Total Particulars Real Estate Healthcare Lifestyle Total Real Estate Healthcare Lifestyle Total Rp % Rp % Rp % Rp % Revenue 1,095 2,964 301 4,359 914 2,522 289 3,724 181 20% 442 18% 12 4% 635 17% Gross profit 515 1,296 201 2
Slide 54: Thank You
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Slide 55: Notes
@2LIPPO Notes 55
Slide 56: Investor Relations
INVESTOR RELATIONS PT LIPPO KARAWACI TBK Head of Investor Relations Dr. Randi Bayu Prathama Email: Randi.Prathama@lippokarawaci.co.id Mobile: +62811225873 Deputy Head of Investor Relations Indra Agina Sinuraya Email: Indra.Sinuraya@lippokarawaci.co.id Mobile: +6281310008957 56