Pt Pakuwon Jati Tbk · IDX:PWON
Pt Pakuwon Jati Tbk — Pakuwon Jati — Q1 2017 Earnings Presentation
55 slides from Pt Pakuwon Jati Tbk's earnings presentation, 2017
Slide 1: Pakuwon Jati Results Presentation – 1Q 2017
Strictly Confidential Pakuwon Jati Results Presentation – 1Q 2017 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 21 Appendix B PT Pakuwon Permai acquisition 41 Appendix C Jakarta land bank 45 Appendix D Healthcare & Hospital expansion 50 Appendix
Slide 4: Results summary
Section 1 Results summary PP) PT. PAKUWON JATI
Slide 5: Results summary
Results summary (Rp bn unless otherwise stated) 1Q2017 1Q2016 Variance Comments Revenue 1,378 1,246 +10.6% 10% increase in recurring revenues and 11% increase in development revenue recognition. Pakuwon Permai contributed Rp 196bn (14%) of revenues. 1 794 766 +3.7% Gross Profit Decline in gross prof
Slide 6: Results breakdown
Results breakdown Revenue by segment (1Q 2017) Revenue by project (1Q 2017) Revenue by geography (1Q 2017) Hotel & Grand Serviced Pakuwon Apartments Pakuwon City 9.3% 6.9% 4.3% Office leasing Royal Plaza 4.8% 1.5% Kota Condo sales Kasablanka 39.2% Pakuwon Mall 39.9% Surabaya 10.2% 45.6% Jakarta Reta
Slide 7: Key recent developments
Key recent developments Opened Pakuwon Mall Phase 2 & 3 in 22 February 2017 Refinanced USD200m of 7.125% Senior Unsecured Note due 2019 Issued USD250m of 5.0% Senior Unsecured Note due 2024 Acquired in June 2016, 11ha land in Daan Mogot, West Jakarta Completed Four Points by Sheraton Surab
Slide 8: Business summary
Section 2 Business summary PP) 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) 40 50 45 35 40 30 35 25 30 25 20 20 15 15 10 10 5 5 0 0 1Q 2013
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) GSA % Superblock / Township Project name Segment Progress u
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) 1,400 CBD 1,200 900 800 1,000 700 Outside CBD 800 600 500 600
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% 14% 14% 12% 6% 50% • Some vacancies in Tunjungan Plaza and Pakuwon Mall
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 2016 - 1Q 2016 - 1Q (Rp psm / month) 2013 2014 2015 2016 1Q 17 (Rp psm /
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 +9% 700 662 180 2,000 166 605 +43% 1,784 160 +95% 1,800 600 140 1,600 500 531 1,400 120 1,251 400 1,2
Slide 17: Land bank – Sufficient for >10 years of development
Land bank – Sufficient for >10 years of development 456.4 hectares of land bank to sustain growth and high margins, without being a drag on balance sheet and return on capital Land under Additional land Total land Location Project development (ha) bank (ha) bank (ha) Kota Kasablanka 2.7 3.4 6.1 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) 4,841 54% 60% 5,000 56% 56% 58% 55% 4,625 2,700 56% 60% 4,500 3,872 2,400 4,000 50% 2,288 2,100 3,500 2,314 3,030 1,800 40% 3,000 2,082 1,500 2,500 2,165 30% 2,666 2,627 1,596 1,200 2,000 2,162 1,223 1,2
Slide 20: Strong financial position and prudent balance sheet
Strong financial position and prudent balance sheet (Rp bn unless otherwise stated) As of 1Q 2107 As of 1Q 2106 Cash 2,855 2,071 Total Debt1 5,934 4,968 Net Debt 3,079 2,897 Net Debt / Equity 27% 31% Net Debt / Assets 14% 15% Fixed Charge Coverage Ratio (FCCR) 2 3,5x 3,8x % Fixed Rate Debt 56% 56% C
Slide 21: Well balanced debt maturity profile
Well balanced debt maturity profile Average debt maturity of 5.2 years, with cost of debt between c.6.1 – 11% p.a.1 Debt Maturity Profile (Rp bn) As % of 3% 10% 6% 11% 10% 4% 0% 0% 56% total Repaid 3,500 3,000 2,500 2,000 3,330 1,500 1,000 Repaid 500 574 634 627 353 213 0 202 0 1Q 2107 2Q-4Q 2107 20
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 Pakuwon City Grand Pakuwon Location Jakarta Fringe CBD South Jakarta Surabaya CBD East Surabaya West Surabaya Description 12.9ha located right next to 3rd largest s
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: Project locations
Project locations Jakarta Surabaya Newly acquired PP assets Source: Company Data 25
Slide 27: 35 year track record and growing…
35 year track record and growing… 2014 2016 Acquired 67.1% Acquired 11 2012 of PT Pakuwon ha of land in Permai Daan Mogot, Issued US$200m West Jakarta Completed 4 2010 of 7.125% Senior and opening condos, 2 Unsecured of Four Points Completed 2 offices and Notes due 2019. by Sheraton condos,1 office
Slide 28: 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 29: Kota Kasablanka Phase 2
Kota Kasablanka Phase 2 Strata-Title Office Tower Unity Square Phase 1 Condominium and CHIANTI TOWER BELLA TOWER ANGELO TOWER Office Tower Condominium Condominium Condominium Kota Kasablanka Phase 2 Jakarta fringe CBD 3 condominiums 1 office block Artist rendering 28
Slide 30: Gandaria City
Gandaria City GANDARIA 8 TOWER A Office NLA : 58,685 sqm GANDARIA HEIGHTS Condominium 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 Center
Slide 31: Gandaria City Phase 2
Gandaria City Phase 2 Phase 2: Strata Title Office Tower Gandaria City expansion South Jakarta Phase 1: Condominiums 1 office tower Completed projects Phase 2: 5-star hotel GRAND SHERATON HOTEL Gandaria City 5-star hotel Phase 1: GANDARIA CITY MALL Artist rendering 30
Slide 32: 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 8.8 ha of land area TUNJUNGAN PLAZA MALL 476,613 sqm of GFA NLA : 103,202 sqm 4,200 carpark lots TP5: PAK
Slide 33: 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 Completed projects Phase 6: Retail Mall Tunjungan City Phase 5 TP5: NLA:23,800 s
Slide 34: Pakuwon City Township
Pakuwon City Township Pakuwon City Pakuwon City entrance Residential Township East Surabaya <30 minutes from city center 233.5 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 35: Pakuwon City – East Coast Mansion
Pakuwon City – East Coast Mansion Pakuwon City TOWER 2 Condominiums Residential Township TOWER 3 AMOR East Surabaya Condominiums Condominiums • New projects 3 condominiums • Food and Entertaintment Center Retail Mall NLA: 20,472 sqm Artist rendering 34
Slide 36: 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 158.9 ha residential towns
Slide 37: 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 14.6 ha of land area 960,000 sqm of GFA 4.545 carpark lots Artist rendering 36
Slide 38: Pakuwon Mall Phase 2 and 3
Pakuwon Mall Phase 2 and 3 ORCHARD 5-star Hotel Condominiums 204 rooms GSA: 27,628 sqm LA RIZ TOWER Condominiums Pakuwon Mall TANGLIN GSA: 41,388 Phase 2 Condominiums West Surabaya GSA: 32,291 sqm Completed projects • Orchard & Tanglin condominiums • Retail mall expansion Phase 2 & 3 4-star Hotel 32
Slide 39: Pakuwon Mall Phase 4
Pakuwon Mall Phase 4 5-star Hotel 211 rooms BENSON Phase 2 Condominiums ANDERSON THE RITZ TOWER Condominiums Condominiums GSA: 57,101 sqm GSA: 41,388 TOWER 3 Condominiums Phase 2 Pakuwon Mall Phase 4 West Surabaya • 3 condominiums • Retail mall expansion 3-star Hotel 398 rooms Retail Mall Phase 2 Ph
Slide 40: 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 39
Slide 41: Blok M Plaza retail mall Future Development
Blok M Plaza retail mall Future Development Blok M Plaza South Jakarta 1.1 ha of land area 247,373 sqm of GFA1 632 carpark lots Parking Lost Mobil 2 000 Motor 4.100 Artist rendering Note 1 : Completed GFA only 40
Slide 42: PT Pakuwon Permai acquisition
Appendix B PT Pakuwon Permai acquisition 41
Slide 43: 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 44: 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 45: 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 46: Jakarta land bank
Appendix C Jakarta land bank 45
Slide 47: 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 48: 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 47
Slide 49: 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 48
Slide 50: 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 49
Slide 51: Healthcare & Hospital expansion
Appendix D Healthcare & Hospital expansion 50
Slide 52: 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 53: 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 54: Senior Unsecured Notes due 2024
Appendix E Senior Unsecured Notes due 2024 53
Slide 55: 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