PT Lippo Karawaci Tbk · IDX:LPKR
PT Lippo Karawaci Tbk — H1 2024 Earnings Presentation
63 slides from PT Lippo Karawaci Tbk's earnings presentation, Sep 19, 2024
Slide 1: PT Lippo Karawaci Tbk 1H24 Corporate Presentation
PT Lippo Karawaci Tbk 1H24 Corporate Presentation 19 September 2024
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 Leader in Fully Integrated Estate Operations – Scale, Widespread presence in 56 cities and 26 provinces Integration and Financial Discipline: across Indonesia #1 by Total Revenue: IDR 8tn in 1H24 Revenue breakdown: 63% Healthcare, 29% Real #2 by Total Assets: IDR 54tn in 1H24 Estate, 8%
Slide 6: 1H24 Key Highlights
1H24 Key Highlights LPKR recorded 1H24 NPAT of IDR 20tn supported by continuous improvement in business performance and strategic asset divestment Real Estate Healthcare Lifestyle ▪ 1H24 Revenue and EBITDA booked at ▪ 1H24 Revenue¹, Underlying EBITDA2, ▪ 1H24 Revenue booked at IDR 652bn IDR 2.29tn (
Slide 7: 1H24 Financial Update
@2LIPPO ~N = — Ry & & — yy a — N Ry 1H24 FINANCIAL UPDATE
Slide 8: Revenue and EBITDA stable despite SILO deconsolidation
Revenue and EBITDA have been stable despite deconsolidation of SILO for June 2024 Revenue Underlying EBITDA1 (in IDR bn) (in IDR bn) +8% -4% +7% 0% +12% -3.5% +2% +4% +1% 8,016 172 -229 42 0 8,002 1,911 67 -48 3 5 1,938 1H23 Real Estate Healthcare¹ Lifestyle Holdco 1H24 1H23 Real Estate Healthcare¹
Slide 9: Proforma Revenue and Underlying EBITDA improved
On a proforma1 basis for comparison, Revenue and Underlying EBITDA improved by +11% and +13% respectively Revenue Underlying EBITDA2 (in IDR bn) (in IDR bn) +8% +14% +5% +11% +10% +15% -6% +7% +13% 731 30 8,938 203 -9 9 2,168 8,016 161 1,911 54 1H23 Real Estate Healthcare¹ Lifestyle Holdco 1H24 1H23
Slide 10: Underlying NPAT increased by 578% YoY
Underlying NPAT increased by +578% YoY to IDR 164bn from improvement in business performance and liability management activities Revenue (in IDR bn) Underlying EBITDA1 (in IDR bn) +17% +31% +51% 8,938 8,016 8,002 6,814 +69% 1,911 2,168 1,938 1,285 1H22 1H23 1H24 (Proforma3) 1H24 (Statutory) 1H22 1H2
Slide 11: Underlying NPAT closing at Rp153bn
Financials continue to improve despite Silo deconsolidation with 1H24 Underlying NPAT closing at Rp153bn vs –Rp34bn last year Consolidated Underlying EBITDA to NPAT EBITDA by segment Var (YoY) Var (QoQ) (in IDR bn) In IDR bn 1H24 1H23 2Q24 1Q24 Healthcare4 IDR % IDR % Revenue 8,002 8,016 (14) -0.2%
Slide 12: Improved Operating Cash Flow
Improved business performance resulted in positive improvement on Operating Cash Flow Cashflow movement (1H24) Remarks (in IDR bn) Operating Investing Financing ▪ Operating Cash Flow reflected an increase from IDR 157bn in 1H23 2,650 2,981 to IDR 1,688bn in 1H24, driven by 1,688 1,606 2 improvement
Slide 13: Continual deleveraging from SILO shares divested
Continual deleveraging from SILO shares divested in June 2024 Net Debt Reduced by 32% Improvement on FX Risk Profile Remarks Loan Outstanding (in Rp bn) (in Rp bn) Lippo Karawaci divested 10.4% of Siloam shares (equivalent to IDR 3.9tn). Post -32% -34% divestment, LPKR owned 47.67% of SILO 11,730 14
Slide 14: Improved Debt Profile
Improved Debt Profile from earlier Liability Management initiative Debt breakdown Debt maturity Profile (in IDR bn) USD debt (bonds) IDR debt (bank loans) 36% 2,378 USD debt (bonds) IDR debt (bank loans) 1,093 64% 722 460 529 604 352 2024 2025 2026 2027 2028 Historical Net Debt1 Currency Protection
Slide 15: 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 (354) Amount : IDR 5.25tn Interest : BI 7DRR + 2.25% margin p.a. 66 Term : 84 months Collateral : land and building I
Slide 16: Events After Reporting Period – Voluntary Tender Offer of Siloam
Events After Reporting Period – Voluntary Tender Offer of PT Siloam International Hospitals Tbk In 13 September 2024, LPKR participated in the Voluntary Tender Offer of SILO shares: • LPKR have sold 18.57% of its ownership in SILO, reducing its ownership to 29.09%. • LPKR received IDR 6.9tn; approxi
Slide 17: Segment 1: Real Estate Overview
SEGMENT 1: REAL ESTATE OVERVIEW
Slide 18: Real Estate Business Highlights
Real Estate Business Highlights Property Marketing sales Financial Key takeaways and development New projects in 1H24 performance performance going forward projects sold in 1H24 Landed residential: ▪ LPKR achieved Lippo Karawaci: ▪ Real Estate 1H24 ▪ We continue to 65 projects 1H24 marketing 1) Q Li
Slide 19: 1H24 Marketing Sales and Land Bank
1H24 Marketing Sales achieved IDR 3.14tn, reaching 58% of FY24 marketing sales driven by sales of Park Serpong and Lippo Cikarang Cosmopolis from the launch of new product series Historical marketing sales (in IDR bn) Land bank ▪ ~1,000 hectares of land bank in Jakarta, Greater Jakarta and Makassar
Slide 20: 1H24 Marketing Sales Highlights
1H24 Marketing Sales Highlights 1H24 Marketing sales breakdown in Lippo Karawaci 1H24 Marketing sales breakdown in Lippo Cikarang Marketing sales in Lippo Karawaci were mainly driven by landed housing, Marketing sales in Lippo Cikarang were mainly driven by landed housing, accounting for 85% of the
Slide 21: 1H24 Project Handover Highlights
1H24 Project Handover Highlights Real Estate’s 1H24 revenue improved by 8% YoY to IDR 2.29tn, mainly driven by timely handover of landed housing and shophouses. Cendana 96 units – Cendana 61 units – Brava 2 units – Gard’n 94% Essence 27% Himalaya 94% completed Site A completed completed 102 units 22
Slide 22: Product Focus: Park Serpong XYZ Series
Product Focus: Park Serpong Landed Housing (XYZ Series) Type X Type Y Type Z Handover Period: 18 months + 6 months grace Handover Period: 18 months + 6 months grace Handover Period: 18 months + 6 months grace period period period Typical type size and Starting Price: Typical size and Starting Price:
Slide 23: Product Focus: Park Serpong Q Livin Series
Product Focus: Park Serpong Landed Housing (Q Livin Series) Q10 Q11 Q20 Q21 Handover Period: 18 months + 6 months Handover Period: 18 months + 6 months Handover Period: 18 months + 6 months Handover Period: 18 months + 6 months grace period grace period grace period grace period Typical size and Sta
Slide 24: Product Focus: Cendana and The Hive Series
Product Focus: Park Serpong Landed Housing (Cendana) and Shophouses (The Hive Series) Cendana Series The Hive Series (Commercial) Handover Period: 18 months + 6 months grace period Handover Period: 18 months + 6 months grace period Typical size and Starting Price: Typical size and Starting Price: ▪
Slide 25: Park Serpong New Product Development (9en Series)
Product Focus: Park Serpong New Product Development (9en Series) Cendana Suites Blackslate Homes Typical size and Starting Price: Typical size and Starting Price: ▪ Type 5 (67.5m2 land / 78.1m2 ▪ Type Standard (112m2 land / building) price at IDR 943mn 125.5m2 building) price at IDR ▪ Type 5.5 (79.8
Slide 26: Customer enthusiasm on new product launches
Customer enthusiasm on new product launches Zen Series @Park Serpong Zen Series @LCC The Hive @Parkhills Launch Date: 27 April 2024 Launch Date: 15 June 2024 Launch Date: 20 July 2024 26
Slide 27: Segment 2: Healthcare Overview
SEGMENT 2: HEALTHCARE OVERVIEW
Slide 28: Siloam YoY growth outside Covid influence
2024’s YoY growth demonstrates the sustained growth potential for Siloam outside the influence of Covid Revenue¹ (in IDR bn) Revenue¹ Underlying EBITDA2 Annual Revenue Quarterly Revenue IDR4.66tn IDR1.39tn 13.3% in 1H24 in 1H24 7,637 8,663 4.1% 7,393 5,262 5,758 14.0% 15.3% 1,685 1,951 2,010 2,047 2
Slide 29: Growth anchored by improving revenue intensity
This growth is anchored by ongoing strategy to improve revenue intensity Average Revenue per Occupied Beds (in IDR bn) Average Revenue per Occupied Beds (in IDR bn) ARPOB in 2Q24 continued to improve by 3.5% YoY and 1.1% QoQ Hospital A Hospital B +10.7% 3.80 1.9 1.9 3.00 3.30 3.30 1.3 1.2 2.20 +3.5%
Slide 30: Throughput improved steadily
Besides ARPOB, throughput has also improved steadily after allowing for 2Q24 seasonal factors Quarterly Results YTD +13.9% +15.0% 71,316 71,645 80,230 79,272 82,840 81,626 142,961 164,466 65,908 67,995 Inpatient 49,608 51,235 55,704 Admissions 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1
Slide 31: EBITDA margin remains stable
EBITDA margin remains stable resulting from various efficiency initiatives Drugs & clinical supplies (IDR bn, % to Revenue) Operating expenses (IDR bn, % to Revenue) 33.0% 29.9% 35.3% 28.9% 28.8% 28.8% 28.2% 27.9% 31.9% 31.7% 31.7% 30.5% 29.3% 28.9% 2,419 2,345 2,200 2,213 1,737 1,854 1,839 1,667 1,
Slide 32: Corporate and Insurance market continue to grow
Corporate and Insurance market continue to grow in challenging environment % Contribution to Revenue 1H23 vs 1H24 OPE 17.7% 18.10% Corp & Ins 49.6% 50.00% BPJS 32.7% 31.90% Corporate and Insurance revenue contribution maintained 50% of total revenue 1H23 1H24 Payee Group Contribution to Revenue (IDR
Slide 33: 1H24 Highlights
1H24 Highlights Awards and Recognition Updated Facilities MRCCC has successfully climbed Siloam Agora has opened the ranking of Best Specialized new LINAC and Cathlab on Hospitals Asia Pacific 2024. to grow our oncology and cardiology craft group. This achievement inspires us to continue to strive t
Slide 34: CONGO Performance
CONGO Performance CONGO Needle Movers show tremendous growth, due to focused initiatives to enhance complexity and clinical excellence in our CONGO craft groups 11.2% 17.9% in 1H24 vs 1H23 in 1H24 vs 1H23 Cardiology Oncology Y-o-Y Revenue Y-o-Y Revenue Growth Growth 12% 55% CONGO CONGO Needle Revenu
Slide 35: Key Pipeline Project: Hospital Expansion
Key Pipeline Project in Development Hospital Expansion SHMK Extension SHLV Oncology Centre Siloam Surabaya Gubeng ASRI Extension Est Completion Q4 2024 Q1 2025 Q1 2025 2026 Hospital Type Type B Type B Type B Type B Addition #Bed 50 beds 16 Onco Beds 200 beds 57 Beds GFA 12,801 sqm 5,301 sqm 30,187 s
Slide 36: Key Pipeline Project: Ongoing Greenfield Project
Key Pipeline Project in Development Ongoing Greenfield Project SH CITO SH MERR SH Semarang Srondol SH Samarinda SH Kemang Antasari Est Completion 2024 Q2 2025 Q3 2025 Q1 2026 2027/2028 Hospital Type Type 3 Type C Type B Type C Type B Number of beds 127 beds 100 beds 200 beds 100 beds COE Ortho, Mom
Slide 37: Digital Patient Channels transformation
Over the past few years, we have successfully transformed our Digital Patient Channels to deliver seamless patient experience and positive operational performance Patient Voice Patients’ Complaints MySiloam App & Website SOFAS Approximately 90% complaints received in Gather as much data possible com
Slide 38: Segment 3: Lifestyle Overview
SEGMENT 3: LIFESTYLE OVERVIEW
Slide 39: Lippo Mall Indonesia: Largest mall operator in Indonesia
Lippo Mall Indonesia: The largest mall developer and operator in Indonesia About LMI Leading player in the number of malls operated ▪ Lippo Mall Indonesia is the largest mall developer and operator in 59 Indonesia with 59 managed malls nationwide across 39 cities in 60 Indonesia. The company has the
Slide 40: Malls financial performance
Malls business booked stable financial performance with IDR 336bn revenue and IDR 74 bn EBITDA Malls Revenue1 Malls EBITDA1 (in IDR bn) (in IDR bn) 25% 22% +2% 330 336 -9% 81 74 1H23 1H24 1H23 1H24 Consistent YoY growth of malls visitors2 Stable malls occupancy rate2 (Average monthly visitors; in mn
Slide 41: Lifestyle events driving visitor numbers
Lifestyle events are becoming increasingly popular, leading to a surge in visitors numbers. Wonderful Ramadhan Puri Daebak . During the festive season of Eid, Lippo Mall Puri held a bazzar called the ‘Puri Daebak’, the biggest Korean festival with 100 tenants serving Korean ‘Wonderful Ramadhan’. Thi
Slide 42: Hotels: Aryaduta brand premium hotel player
Hotels: A prominent player in the premium hotel sector under the Aryaduta brand About Aryaduta Strategically located in top cities in Indonesia ▪ Aryaduta Hotels is a Jakarta Bali Bandung heritage luxury hotel chain located strategically in 9 top cities across Indonesia. ▪ Known as "Iconically Indon
Slide 43: Hotels: Stable growth of operational metrics
Hotels: Stable growth of hotels operational metric which reflects on 10% YoY revenue growth and 11% YoY EBITDA growth Hotels revenue¹ Hotels EBITDA¹ (in IDR bn) (in IDR bn) 37% 37% +10% 221 201 +11% 75 83 1H23 1H24 1H23 1H24 Hotels occupancy Average room rates (in IDR) -2% +8% 64% 63% 603,959 561,02
Slide 44: Customer engagement events at Aryaduta
Continuous customer engagement through events such as “Fun Triathlon Relay 2024”, “Tjakap Djiwa” : Closing Event, and “Sapta Rasa” Fun Triathlon Relay 2024 Tjakap Djiwa: Closing Event Sapta Rasa Triathlon Relay is sports triathlon which consists of 3 people in Aryaduta Hotels Group held “Tjakap Djiw
Slide 45: Ongoing AEIs Scheduled for 2024
Ongoing AEIs Scheduled AEIs for 2024 Istana Plaza Mal Lippo Cikarang Lippo Plaza Kramat Jati Sun Plaza Lippo Plaza Ekalosari Est Completion Completed Q3 2024 Q2 2024 Completed Q4 2024 NLA 2,458 sqm 3,455 sqm 7,770 sqm 5,463 sqm 6,306 sqm Function Asset enhancement to prepare Extension ground floor t
Slide 46: Planned AEIs 2024–2026
Planned AEIs Scheduled AEIs for 2024 – 2026 Palembang Square The Plaza Semanggi Cibubur Junction Gajah Mada Plaza Est Completion Q1 2025 2026 2026 Completed NLA 14,788 sqm 59,328 sqm 34,113 sqm 29,869 sqm Function Re-layout and refurbishment for ex- Major refurbishment of interior façade, Major refu
Slide 47: Sustainability
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Slide 48: Sustainability Strategy
Sustainability Strategy ESG Approach ESG Priorities • Integrate sustainability in business strategy, Environment Social Governance operations, and governance structure, in line with global best practices Accessible and affordable Decarbonization roadmap Climate risks and homes and healthcare and GHG
Slide 49: ESG Reporting
ESG Reporting Reporting Standards and Commitments GRI Standards TCFD Framework SASB OJK Requirements WEF Stakeholder UN Global UN SDGs Standards Capitalism Compact ESG Ratings ISSB Transition • Early adoption of TCFD Framework and SASB standards since 2022 SR, which form the basis for ISSB standards
Slide 50: 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 2023 PERFORMANCE 2023 PERFORMANCE 2030 TARGET 2023 PERFORMANCE 2030 TAR
Slide 51: 2030 Performance Highlights
2030 Performance Highlights Enhancing Quality of Life Caring For Our Environment Investing In Our People Championing Best Practices >185 million people served 2 New Green Buildings 40% Socialization for in 26 provinces across Indonesia EDGE Certification for Lippo Mall Puri & Female senior executive
Slide 52: Community Engagement Framework
Community 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 ecosyste
Slide 53: Looking Ahead
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Slide 54: Looking Ahead
Looking Ahead Real Estate Healthcare Lifestyle ▪ We have seen stable Malls’ occupancy rate ▪ We continue to offer unique products such ▪ SILO’s strategy to focus on enhanced at 79.9%, averaging 10.4 million visitors as the Cendana Suites, XYZ, Q Livin, complexity and clinical excellence in per month
Slide 55: Appendices
PT TTTTTTTLLLLLLA APPENDICES
Slide 56: Consolidated Statutory Statement of Profit and Loss
Consolidated Statutory Statement of Profit and Loss P&L Highlights (in IDR bn) 1H24 1H23 YoY Changes Total Revenues 8,002 8,018 0% COGS (4,534) (4,615) -2% Gross Profit 3,468 3,403 2% Operating Expenses (2,099) (2,092) 0.3% Operating Profit 1,369 1,311 4% Other Income & Expenses - Net 19,860 1,265 1
Slide 57: Consolidated Statutory Statement of Financial Position
Consolidated Statutory Statement of Financial Position Balance Sheet Highlights (in IDR bn) 1H24 FY23 1H24 FY23 ASSETS LIABILITIES & EQUITY CURRENT ASSETS CURRENT LIABILITIES Cash & Cash Equivalent 1,606 2,650 Bank Loans 1,408 2,787 Trade Accounts Receivable 576 1,934 Lease Liabilities 92 575 Invent
Slide 58: Consolidated Statutory Statement of Cash Flow
Consolidated Statutory Statement of Cash Flow Cash Flow Highlights (in IDR bn) 1H24 1H23 YoY Changes Cash at beginning 2,650 2,626 1% Cash from operating activitites: 1,688 157 973% Business operations 1,995 131 1,421% Placement for restricted funds (306) 26 -1,271% Cash from investing activities: 2
Slide 59: Cash breakdown
Cash breakdown Cash breakdown – June 2024 Cash breakdown – Dec 2023 179 206 (7%) (8%) 25 13 (1%) (0%) 1,245 1,401 (47%) 1,009 (39%) (54%) 1,186 (45%) Consolidated cash: IDR 1,606bn Consolidated cash: IDR 2,650bn Holdco (incld. Subs) LPCK Holdco (incld. Subs) LPCK SILO GMTD SILO GMTD 59
Slide 60: Financial Results (1H24 vs 1H23)
Financial Results (1H24 vs 1H23) 1H24 1H23 Real Estate Healthcare Lifestyle Holdco Total Particulars Real Estate Healthcare Lifestyle Holdco Total Real Estate Healthcare Lifestyle Holdco Total Rp % Rp % Rp % Rp % Rp % Revenue 2,296 5,053 652 0 8,002 2,124 5,282 610 - 8,016 172 8% (229) -4% 42 7% (0)
Slide 61: Thank You
PT TTTTTTTLLLLLLA THANK YOU
Slide 62: Notes
@2LIPPO Notes 62
Slide 63: 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 63