Pt Pakuwon Jati Tbk · IDX:PWON
Pt Pakuwon Jati Tbk — Q3 2014 Earnings Presentation
53 slides from Pt Pakuwon Jati Tbk's earnings presentation, 2014
Slide 1: Pakuwon Jati Results Presentation – 3Q 2014
Strictly Confidential Pakuwon Jati Results Presentation – 3Q 2014 0
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 20 Appendix B PT Pakuwon Permai acquisition 40 Appendix C 4.2ha South Jakarta land bank 44 Appendix D Healthcare & Hospital expansion
Slide 4: Results summary
Section 1 Results summary PP) PT. PAKUWON JATI
Slide 5: Results summary
Results summary (Rp bn unless otherwise stated) 9M 2014 9M 2013 Variance Comments Higher sales recognition of condominiums and Revenue 2,716 2,315 +17.3% landed residential units Gross Profit 1,625 1,353 +20.1% Higher margins from landed houses Gross Profit Margin (%) 59.8% 58.4% EBITDA 1,591 1,322
Slide 6: Results breakdown
Results breakdown Revenue by segment (9M 2014) Revenue by project (9M 2014) Revenue by geography (9M 2014) Office Hotel leasing 4.3% 3.9% Educity Kota Condo sales 17.3% Kasablanka 32.9% 30.1% Pakuwon Jakarta Retail City 42.6% leasing 37.1% 16.5% Surabaya 57.4% Gandaria Landed 12.5% Office sales hous
Slide 7: Key recent developments
Key recent developments Acquired 67.1% of PT Pakuwon Permai ("PP") for Rp1,685bn (US$138.1m), net of cash on PP balance sheet • Acquired from EEMF Asian Developments B.V., an unaffiliated third party vendor • Funded via proceeds from US$200m 2019 USD bonds issued in July 2014 • Completed on 10 Oct
Slide 8: Business summary
Section 2 Business summary PP) PT. PAKUWON JATI
Slide 9: Residential market update
Residential market update Residential sales resilient as developers have provided more flexible payment terms to offset new mortgage regulations enacted in 2Q 2014 ASPs of condos in Jakarta (Rpm psm) ASPs of condos in Surabaya (Rpm psm) 45 40 40 CBD 35 35 30 South 30 Jakarta 25 Jakarta 25 Average 20
Slide 10: Residential development – Strong take-up of existing projects
Residential development – Strong take-up of existing projects Strong pre-sales across all residential and office projects underpins future growth Historical Pre-sales (Rp bn) Pre-sales and construction update (excludes residential township) 3,500 Superblock / GSA Project name Segment % Sold Progress
Slide 11: Retail market update
Retail market update Retail property market helped by limited new supply in Jakarta and Surabaya – driving up occupancy and rents Average asking base rental rates in Jakarta Cumulative retail supply in Surabaya (sqm) (Rp'000 psm / month) Very limited new supply from 2012 - 2015 1,000 800 CBD 700 800
Slide 12: Retail malls – Continued strong leasing interest
Retail malls – Continued strong leasing interest Wide appeal of PWON's malls demonstrated by consistently high occupancy Historical Occupancy Lease Expiry Profile (NLA breakdown) • Maintained strong occupancy across portfolio 4% 11% 21% 30% 35% • Some vacancies in Supermal Pakuwon Indah due to tenan
Slide 13: Office & hotel – Stable rents and rising RevPAR
Office & hotel – Stable rents and rising RevPAR Offices and hotels further diversify income base and increase recurring income, while complementing existing superblocks Average Office Rental (before service charge) Hotel RevPAR 2013-14 2013-14 (US$ psm / month) 2012 2013 2014 2012 2013 2014 % Chg %
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 700 +26% 180 2,000 1,884 643 162 160 +126% 1,800 600 140 1,600 +272% 512 500 1,400 120 1,200 400 100
Slide 17: Land bank – Sufficient for >10 years of development
Land bank – Sufficient for >10 years of development 404 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 Location Project development (ha) land bank (ha) land bank (ha) Kota Kasablanka 2.7 2.9 5.6 South
Slide 18: Capital management
Section 4 Capital management 17
Slide 19: Strong financial position and prudent balance sheet
Strong financial position and prudent balance sheet Modest increase in gearing to acquire 67% of PT Pakuwon Permai, which provides immediate cashflows as well as a strong pipeline of developments As of 30 As of 30 (Rp bn unless otherwise stated) Comments Sep-14 Jun-14 Cash 2,1101 2,280 Increase from
Slide 20: Well balanced debt maturity profile
Well balanced debt maturity profile Average debt maturity of 3.6 years, with cost of debt between c.10 – 11% p.a.1 Debt Maturity Profile (Rp bn) As % of 2% 11% 25% 10% 0% 52% 1% total 3,000 2,500 2,000 1,500 2,442 1,000 708 Repaid 500 516 459 467 31 0 102 2014 2015 2016 2017 2018 2019 2020 Onwards B
Slide 21: Company overview
Appendix A Company overview 20
Slide 22: 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 23: Portfolio overview
Portfolio overview Strategically located superblocks and townships in Jakarta and Surabaya Kota Kasablanka Gandaria City Tunjungan City Pakuwon City Grand Pakuwon Location Jakarta Fringe CBD South Jakarta Surabaya CBD East Surabaya West Surabaya Description 12.5ha located right next to 3rd largest s
Slide 24: Portfolio overview (cont'd)
Portfolio overview (cont'd) Strategically located superblocks and townships in Jakarta and Surabaya Supermal Pakuwon Indah 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 s
Slide 25: Project locations
Project locations Jakarta Surabaya Newly acquired PP assets Source: BPS Indonesia 24
Slide 26: 30 year track record and growing…
30 year track record and growing… 2014 Acquired 67.1% of PT Pakuwon Permai Issued US$200m of 7.125% 2012 Senior Unsecured Notes due Completed 4 2019 2010 condos, 2 offices and opened Kota Increased shareholding of Completed 2 condos,1 4.2ha Simatupang land bank Kasablanka mall with office tower, and
Slide 27: Kota Kasablanka Superblock
Kota Kasablanka Superblock 88 KASABLANKA TOWER 88 KASABLANKA TOWER A A Office (for sale and lease) GSA : (for Office 58,320 sqm sale) GSA : 57,320 sqm CASA GRANDE Kota Kasablanka Condominium 88 KASABLANKA TOWER B Superblock GSA : 96,168 sqm Office (for lease) NLA : 31,546 sqm Jakarta fringe CBD 12.4
Slide 28: Kota Kasablanka Phase 2
Kota Kasablanka Phase 2 Strata-Title Office Tower Phase 1 Condominium and MILANO TOWER BELLA TOWER ANGELO TOWER Office Tower Condominium Condominium Condominium Kota Kasablanka Phase 2 Jakarta fringe CBD 3 condominiums 1 office block Artist rendering 27
Slide 29: Gandaria City
Gandaria City GANDARIA 8 TOWER A Office NLA : 58,685 sqm GANDARIA HEIGHTS Condominium Gandaria City GSA : 73,633 sqm Units : 715 SHERATON HOTEL Superblock Gandaria City South Jakarta 5-star hotel Rooms: 294 9.4 ha of land area 573,800 sqm of GFA1 4,800 carpark lots GANDARIA CITY Shopping Center 0.9
Slide 30: Gandaria City Phase 2
Gandaria City Phase 2 Phase 2: Strata Title Office Tower Gandaria City expansion South Jakarta Phase 1: Condominiums 5-star hotel 1 office tower Phase 2: SHERATON HOTEL Gandaria City 5-star hotel Phase 1: GANDARIA CITY MALL Artist rendering 29
Slide 31: Tunjungan City
Tunjungan City TP5: THE PEAK Condominium GSA : 29,962 sqm Tunjungan City SHERATON Superblock 5 Star Hotel Surabaya CBD Rooms: 306 TP5: FOUR POINTS Serviced apartments: 53 4-star hotel Rooms: 293 7.7 ha of land area TUNJUNGAN PLAZA MALL 315,292 sqm of GFA1 NLA : 103,202 sqm 4,200 carpark lots TP5: PA
Slide 32: Tunjungan City Phase 5 & 6
Tunjungan City Phase 5 & 6 TP6: Office Tower GSA: 37,800 sqm TP6: ONE ICON Condominium GSA : 48,757 sqm Tunjungan City Phase 5 & 6 Surabaya CBD TP5: Mall, offices, condos, THE PEAK hotel Condominium TP5: FOUR POINTS Hotel TP5: Phase 6: PAKUWON Retail Mall TOWER Office TP5: Retail Mall Artist renderi
Slide 33: Pakuwon City Township
Pakuwon City Township Pakuwon City Pakuwon City entrance Residential Township East Surabaya <30 minutes from city center 224 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, hospit
Slide 34: Pakuwon City - Educity
Pakuwon City - Educity Pakuwon City Residential Township East Surabaya Projects currently under development 4 EduCity condominiums Artist rendering 33
Slide 35: 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 <30 minutes from downtown Surabaya 127 ha residential township Artist rendering 34
Slide 36: Supermal Pakuwon Indah
Supermal Pakuwon Indah At completion Supermal Pakuwon Indah will be Indonesia’s largest retail mall with direct connections to 12 condominium towers, 2 hotels and 1 serviced apartment Supermal Pakuwon Indah West Surabaya 14.6 ha of land area 274,577 sqm of GFA1 2,852 carpark lots1 Artist rendering N
Slide 37: Supermal Pakuwon Indah Phase 2
Supermal Pakuwon Indah Phase 2 ORCHARD Condominiums Phase 3 GSA: 27,628 sqm TANGLIN Condominiums Phase 3 Supermal Pakuwon GSA: 32,291 sqm Indah Phase 2 West Surabaya Retail mall expansion 2 condominium towers Phase 2 Retail Mall GSA: 36,914 sqm ..% old Artist rendering; Company data as of August 201
Slide 38: Supermal Pakuwon Indah Phase 3
Supermal Pakuwon Indah Phase 3 5-star Hotel Pullman 211 rooms Phase 2 THE RITZ TOWER Condominiums GSA: 41,388 Phase 2 Supermal Pakuwon Indah Phase 3 West Surabaya Retail mall expansion 1 condominium 3-star Hotel 2 hotels IBIS Styles 398 rooms Phase 2 Phase 3 Retail Mall GSA: 36,465 sqm ..% old Artis
Slide 39: Royal Plaza retail mall
Royal Plaza retail mall Royal Plaza South Surabaya 3.1 ha of land area 184,423 sqm of GFA1 1,450 carpark lots 38
Slide 40: 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 GFA1 632 carpark lots Parking Lost Mobil 2 000 Motor 4.100 39
Slide 41: PT Pakuwon Permai acquisition
Appendix B PT Pakuwon Permai acquisition 40
Slide 42: 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 Retail
Slide 43: 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 44: 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 22.2% increase in recurring revenue1 expertise •
Slide 45: 4.2ha South Jakarta land bank
Appendix C 4.2ha South Jakarta land bank 44
Slide 46: 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 47: 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 46
Slide 48: 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 : 42,140 sqm C A B D E F F G H I 47
Slide 49: Healthcare & Hospital expansion
Appendix D Healthcare & Hospital expansion 48
Slide 50: 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 51: 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 52: Senior Unsecured Notes due 2019
Appendix E Senior Unsecured Notes due 2019 51
Slide 53: Offering Summary
Offering Summary Notes Offered US$200mn aggregate principal amount of 7.125% Senior Unsecured Notes due 2019 (the “Notes”) Maturity Date July 2, 2019 Interest The Notes will bear interest from and including July 2, 2014, payable semi-annually in arrears Issuer Ratings B1, stable (Moody's) / B+, stab