Pt Surya Semesta Internusa Tbk · IDX:SSIA
Pt Surya Semesta Internusa Tbk — Investor Presentation (September 2020)
53 slides from Pt Surya Semesta Internusa Tbk's investor presentation, Sep 10, 2020
Slide 1: Review First Half 2020
5 77 BUILDING A BETTER INDONESIA suryainternusa PT Surya Semesta Internusa Tbk (“SSIA”) Review First Half 2020 www. suryainternusa. com
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
Slide 4: Significant growth since IPO and 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) • Acquired location Cikopo Palimanan – Raised over IDR 1,600 billion in debt 2012 p
Slide 5: Company overview and shareholding structure
Shareholding Structure 9.0% • Established and commenced operations in 1971, SSIA’s primary 7.9% PT Arman Investments Utama businesses are in construction, property and hospitality sectors PT Persada Capital Investama 7.7% Intrepid Investments Limited Reksa Dana HPAM Ekuitas Progresif • One of the Le
Slide 6: Board of Commissioners and Board of Directors
Board of Commissioners >40 Years >50 Years >50 Years >45 Years >20 Years Experience Experience Experience Experience Experience Hagianto Kumala Emil Salim Royanto Rizal Steen Dahl Poulsen Crescento Hermawan President Commissioner Vice President Commissioner Commissioner Commissioner Commissioner Pri
Slide 7: Group structure
PT Surya Semesta Internusa Tbk Market cap: IDR 1.8tn / US$ 128mn 100% 50% 100% 100% 66.0% 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 Internusa Swadaya Internusa Makmur Market C
Slide 8: Presence in Fourteen Indonesian Cities
Presence in Fourteen Indonesian Cities Medan Pekanbaru Subang Karawang • Regional office for Nusa Raya • Acquired location permit of • Suryacipta City of Industry (1,400ha) • BATIQA Hotel (Business Hotel, Cipta (“NRCA”) 2,000ha 3-star, 133 rooms) - Grand • BATIQA Hotel & Apartments Karawang (Busines
Slide 9: Vision and strategy
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 margins 3 Continued p
Slide 10: Indonesia economic indicators
Source: Bank Indonesia, Indonesian Bureau Statistics April 2016 onwards rate refers to BI 7-day (Reverse) Repo Rate
Slide 11: Revenue and EBITDA by Business Segments for 1H20
Revenue and EBITDA By Business Segments for 1H20 Revenue Across Business Segments EBITDA Across Business Segments (1H2020) (1H2020) 60% 11% 12% -78% IDR 1,466bn IDR 47bn 77% 118% Property Construction Hospitality Property Construction Hospitality
Slide 12: Consolidated Revenue, Gross Profit, EBITDA, Net Income
Consolidated Revenue Gross Profit (1H19 vs 1H20, IDR Billions) (1H19 vs 1H20, IDR Billions) 1,814 1,466 1H19 1H20 EBITDA Net Income (1H19 vs 1H20, IDR Billions) (1H19 vs 1H20, IDR Billions)
Slide 13: Segment Revenue
Property Segment Revenue (1H19 vs 1H20, IDR Billions) Construction Segment Revenue Hospitality Segment Revenue (1H19 vs 1H20, IDR Billions) (1H19 vs 1H20, IDR Billions)
Slide 14: Consolidated and Recurring Revenue
Consolidated Revenue (2015-2019, IDR Billions) 4,868 655 3,797 3,682 4,006 3,274 678 811 803 697 3601 1,814 1,466 2,476 2,611 363 2,454 153 2,164 1,310 1,132 880 660 588 414 442 142 181 2015 2016 2017 2018 2019 1H19 1H20 Property Construction Hospitality Others Recurring Revenue(1) (2015-2019, IDR B
Slide 15: Gross Margins by segment
Hotel Gross Margins % Property Gross Margins % 100% 70% 80% 63.8% 63.4% 64.7% 63.5% 60.9% 60% 60% 57.2% 40.7% 40% 52.2% 51.0% 50% 48.8% 20% 0% 38.8% 2016 2017 2018 2019 1H19 1H20 40% 31.9% Construction Gross Margins(1) % 30% 15% 10.2% 10.2% 10.4% 10.5% 10.2% 20% 9.9% 10% 10% 5% 0% 0% 2016 2017 2018
Slide 16: Financial Highlights: Consolidated Operating Results
suryainternusa Financial Highlights tas Consolidated Operating Results Revenue 3,797 3,274 3,682 4,006 1,814 1,466 Revenue Growth -22% -14% 12% 9% 19% -19% Gross Profit 1,069 864 981 1,091 403 248 Gross Profit Margin 28% 26% 27% 27% 22% 17% EBITDA 613 413 455 533 149 47 EBITDA Margin 16% 13% 12% 13%
Slide 17: Consolidated Revenue by Business Segment
suryainternusa vrs Financial Highlights Consolidated Revenue by Business Segment Property 660 414 442 588 142 181 Segment percentage 17% 13% 12% 15% 8% 12% Construction 2,476 2,164 2,454 2,611 1,310 1,132 Segment percentage 65% 66% 66% 65% 72% 77% Hospitality 678 697 803 811 363 153 Segment percenta
Slide 18: EBITDA definition
EBITDA defined as net income, before interest expenses, tax expenses, depreciation and amortization expenses, includes JO income (loss)
Slide 19: Consolidated Net Profit by Business Segment
suryainternusa vrs Financial Highlights Consolidated Net Profit by Business Segment Property 234 80 127 159 (7) (33) Segment percentage 77% 48% 49% 58% -17% 37% Construction 101 153 123 105 71 4 Segment percentage 33% 92% 48% 39% 163% -46% Hospitality (29) (66) 8 8 (20) (97) Segment percentage -10%
Slide 20: Consolidated Balance Sheet
In IDR Billions 2016 2017 2018 2019 1H20 Current Assets 3,381 5,085 3,459 4,058 3,446 Cash & ST Investments 1,520 1,145 1,372 1,527 1,104 Inventories 392 415 463 422 468 Other-Current Assets 1,469 3,525 1,624 2,108 1,874 Non-Current Assets 3,815 3,766 3,946 4,035 4,376 Investment in Joint Ventures 8
Slide 21: Debt and financial ratios
2016 2017 2018 2019 1H20 Bank/Third parties Loan IDR denominated in IDR Billions 2,457 2,271 1,507 1,194 1,234 US$ denominated in IDR Billions - - - 662(1) 684(1) Total Debt in IDR Billions 2,457 2,271 1,507 1,856 1,918 Debt to Equity Ratio 73% 51% 34% 41% 44% 2016 2017 2018 2019 1H20 ROE 2.1% 29.4%
Slide 22: Review of Business Segments
s > Vaan) BUILDING A BETTER INDONESIA suryainternusa Review of Business Se
Slide 23: Property
: suryainternusa Vaan) BUILDING A BETTER INDONESIA PROPERTY - PT Suryacipta Swadaya (“SCS”) - PT SLP SURYA TICON INTERNUSA(“SLP”) - PT TCP Internusa (“TCP”) - PT Sitiagung Makmur (“SAM”)
Slide 24: DDI and FDI investment
60 400 54 54 348 52 350 50 45 44 19.6 24.5 25.8 300 40 16.1 274 250 14.4 208 28 30 200 26 186 175 150 20 12.2 14.4 112 100 90 10 29.3 28.9 32.2 29.3 28.2 50 14.2 13.6 0 0 2015 2016 2017 2018 2019 1H19 1H20 DDI (US$ b) FDI (US$ b) Total FDI+DDI Land Sales (ha) Source: BKPM (Indonesia Investment Coord
Slide 25: Industrial Sector Fundamentals
INDUSTRIAL SECTOR FUNDAMENTALS Source: Colliers 2Q 2020 Research
Slide 26: Industrial Sector Fundamentals
INDUSTRIAL SECTOR FUNDAMENTALS Source: Colliers 2Q 2020 Research
Slide 27: Business Model (Industrial/Property)
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 location
Subang Industrial City strategically located at • km 88 from Jakarta Trans Java Toll Road Network(1) • 37.7 km away from new flagship port project Patimban, West Java (initial capacity of 250k • Cikopo-Palimanan TEUs) Toll Road • 75 km from new Kertajati international airport Soekarno-Hatta Merak In
Slide 29: Subang City of Industry, 2000 Hectares
2000 HECTARES e \ a, JAKARTA- SURABAYA ‘Semi High-Speed Railway TRANS JAVA TOLL ROAD =a} SUBANG CITY OF INDUSTRY Strategic Location Subang Smart & Sustainable City PATIMBAN SEAPORT KERTAJATI 4 International Airport \“ Ay —— SUBANG CITY OF INDUSTRY
Slide 30: 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 31: Suryacipta ASP and Property Segment Revenue
Suryacipta City of Industry ASP (US$ / sqm) 200 150 121 120 120 121 100 0 2015A 2016A 2017A 2018A 2019A Property Business Segment Revenue (2015-2019, IDR Billions) 880 55 660 55 588 71 442 414 825 71 55 142 181 605 517 358 371 28 36 106 153 2015 2016 2017 2018 2019 1H19 1H20 Industrial Estate Rental
Slide 32: Government support for industrialization leads to higher FDI
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
Slide 33: Industrial Estate Revenue Breakdown
Industrial Estate Revenue Breakdown 40 105 113 106 153
Slide 34: PT SLP Surya Ticon Internusa
• PT Surya Semesta Internusa Tbk (Indonesia) – 50% stake • MITSUI & CO., Ltd (Japan) - 25% stake • Frasers Property Plc. (formerly Ticon Industrial Connection Plc.) (Thailand) PT SLP SURYA – 25% stake TICON INTERNUSA (“SLP”) • Jointly acquiring 22ha total land area in SLP Karawang • 160,255 sqm util
Slide 35: Glodok Plaza
Glodok Plaza (GP) Occupancy Rate (%) Revenue (in IDR billions) 100% 60 55 55 56 90.0% 53 90% 85.0% 79.0% 79.0% 79.3% 50 80% 77.2% 70% 40 60% 50% 30 28 40% 21 20 30% 20% 10 10% 0% 0 2016 2017 2018 2019 1H19 1H20 2016 2017 2018 2019 1H19 1H20
Slide 36: Property: Operating Result
suryainternusa vrs Financial Highlights Property : Operating Result in IDR Billions) [owe wr ae | Revenue 660 414 442 588 142 181 Revenue Growth -25% -37% 7% 33% -0.1% 28% Gross Profit 378 202 225 307 45 70 Gross Margin 57% 49% 51% 52% 32% 39% EBITDA 315 139 175 244 18 36 EBITDA Margin 48% 34% 40% 4
Slide 37: Suryacipta City of Industry photos
Suryacipta City of Industry Entrance Commercial Area Developement Suryacipta City of Industry Factory Toll Exit Leading to Suryacipta City of Industry
Slide 38: Construction
y 5 Vaan) BUILDING A BETTER INDONESIA suryainternusa CONSTRUCTION - PT Nusa Raya Cipta Tbk (“NRCA”)
Slide 39: Business Model (Construction)
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 40: Largest Market Share and Profitability Amongst Private Companies
Largest Market Share … …and Profitability Amongst Private Companies (2014-2019, Revenue, IDR Trillions) Profit Margin (%) – 1H20 5.0 2.62 4.0 3.0 2.47 1.90 2.0 1.0 3.95 0.0 0.90 2014 2015 2016 2017 2018 2019 Nusa Raya Cipta Jaya Konstruksi Total Bangun Persada Nusa Konstuksi Enjiniring ACSET Source:
Slide 41: New Contract Classification
(in IDR Billions) 2016 2017 2018 2019 1H19 1H20 New Contract Classification (in IDR billions) 2,811 2,841 2,693 2,028 589 Contract on hand 1% 5% 0% - beginning 3,192 3,527 4,204 4,444 4,444 3,479 2% 6% 7% 3% 17% 11% 10% 13% 39% Contract obtained 2,811 2,841 2,693 2,028 1,526 589 3% Less: Revenue 13%
Slide 42: NRCA Operating Result
Note: NRCA Operating Result doesn’t include intercompany eliminations ROE are annualized
Slide 43: NRCA balance sheet
In IDR Billions 2016 2017 2018 2019 1H20 Assets Cash & Cash Equivalents 447 657 736 689 696 Account Receivable 1,111 1,085 1,198 1,468 1,373 Project Advance 23 31 38 34 40 Investment Toll Road 125 0 0 0 0 Others 428 569 283 272 276 Total Assets 2,134 2,342 2,255 2,463 2,385 Liabilities Bank Debt - -
Slide 44: Excellent Work Quality Across Sectors
Excellent Work Quality Across Sectors RS Budi Medika (Lampung) Mayapada Hospital (Bandung) Ayana Komodo Resort (Labuan Bajo) The Park Mall Sawangan (Depok) Pacific Garden (Tangerang) Pembelajaran Arntz-Geise Unpar (Bandung)
Slide 45: Hospitality
y 5 Vaan) BUILDING A BETTER INDONESIA suryainternusa Hospitality - PT Suryalaya Anindita International (“SAI”) - PT Ungasan Semesta Resort (“USR”) - PT Surya Internusa Hotels (“SIH”)
Slide 46: Hotel market research
Source: Colliers 2Q 2020 Research & STR Global
Slide 47: Hotel market research
Source: Colliers 2Q 2020 Research & STR Global
Slide 48: Hospitality revenue, occupancy and RevPar
Revenue Occupancy Rate (2015-2019, IDR Billions) (2015-1H20, %) Opened Seven BATIQA Hotels(1) 80% 70% 35.9%(2) 60% 50% 29.6% 40% 803 811 20.3% 30% 697 97 101 20% 19.7% 678 10% 655 2015 2016 2017 2018 2019 1H20 66 80 32 144 144 Gran Melia Melia Bali Banyan Tree BATIQA 162 155 151 Room RevPar (3) (201
Slide 49: ARR and RevPAR by hotel
ARR ($) 2016 2017 2018 2019 1H19 1H20 GMJ 109 103 94 88 88 94 MBH 94 101 113 118 107 113 BTUR 442 466 468 440 427 451 BATIQA (Rp) 303,507 300,366 332,953 314,449 317,983 304,919 Room RevPAR ($) 2016 2017 2018 2019 1H19 1H20 GMJ 50 46 48 40 36 19 MBH 73 77 87 93 79 34 BTUR 287 281 257 254 248 91 BATI
Slide 50: Hospitality: Operating Result
suryainternusa vrs Business Segment Hospitality : Operating Result — _ __ Revenue 678 697 803 814 363 153 Revenue Growth 4% 3% 15% 1% 5% -58% Gross Profit 433 442 519 515 221 62 Gross Margin 64% 63% 65% 64% 61% 41% EBITDA 138 148 186 177 55 (47) EBITDA Margin 20% 21% 23% 22% 15% -381% Operating Prof
Slide 51: 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 52: Disclaimer
These materials have been prepared by PT Surya Semesta Internusa Tbk (the “Company”, “SSIA”) and solicitation or invitation of any offer to buy or subscribe for any securities of the Company, in any have not been independently verified. No representation or warranty, expressed or implied, is made ju
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