Pt Lippo Karawaci Tbk · IDX:LPKR
Pt Lippo Karawaci Tbk — H1 2023 Earnings Presentation
55 slides from Pt Lippo Karawaci Tbk's earnings presentation, Jul 28, 2023
Slide 1: PT Lippo Karawaci Tbk 1H23 Corporate Presentation
PT Lippo Karawaci Tbk 1H23 Corporate Presentation 28 July 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: 65% Healthcare, 27% Real #1 by Recurring Revenue: IDR 11tn in FY2
Slide 6: 1H23 Key Highlights
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Slide 7: 1H23 Key Highlights
1H23 Key Highlights LPKR achieves positive NPAT in 2Q23 backed by improved business fundamentals across all business segments, without any one- off events. Real Estate Healthcare Lifestyle ▪ Strong 1H23 marketing sales ▪ Siloam successfully maintained its ▪ Malls 1H23 Revenue increased by 59% achiev
Slide 8: 1H23 Financial Update
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Slide 9: Revenue and EBITDA grew by 19% and 39% YoY respectively
Revenue and EBITDA grew by 19% and 39% YoY respectively Revenue EBITDA (in IDR bn) (in IDR bn) +5% +13% +1% +19% +6% +31% +2% +39% 872 77 8,076 6,814 314 439 23 1,970 1,417 91 1H22 Real Estate Healthcare Lifestyle 1H23 1H22 Real Estate Healthcare Lifestyle 1H23 Development Development ▪ 1H23 consoli
Slide 10: Healthy revenue and EBITDA QoQ growth from all business segments
Healthy revenue and EBITDA QoQ growth from all business segments despite seasonality factor of holiday season especially to the healthcare segment Revenue EBITDA (in IDR bn) (in IDR bn) +12% -1% +0.5% +12% +21% +1% +3% +25% 453 19 4,261 3,815 (26) 8 24 1,093 184 877 1Q23 Real Estate Healthcare Lifes
Slide 11: NPAT booked at IDR 1.1tn on 19% revenue growth
NPAT booked at IDR 1.1tn on the back of 19% revenue growth, 21% gross profit growth, 39% EBITDA growth, and 103% underlying NPAT growth Revenue EBITDA (in IDR bn) (in IDR bn) +5% +11% +19% +39% 8,076 1,970 7,374 6,814 1,600 1,417 1H21* 1H22 1H23 1H21* 1H22 1H23 Gross profit NPAT (in IDR bn) (in IDR
Slide 12: 2Q23 performance driven by 25% QoQ EBITDA growth
2Q23’s performance was driven by 25% QoQ EBITDA growth, resulting from improved business performance across all segments, with no one-off event impacting the result Consolidated EBITDA to NPAT EBITDA by segment (in IDR bn) (in IDR bn) Var (YoY) Var (QoQ) In IDR bn 1H23 1H22 2Q23 1Q23 Healthcare IDR
Slide 13: Significant turnaround of cash from operating activities
Significant turnaround of cash from operating activities along with the improvement in business operations Cashflow movement (1H23) Remarks (in IDR bn) ▪ Operating Cash Flow reflected a 2,626 Operating Investing Financing significant turnaround from -IDR 2,086 834bn in 1H22 to IDR 157bn in 1H23, mai
Slide 14: 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 15: Liability Management
Liability Management Debt breakdown Debt maturity Profile (in IDR bn) USD debt (bonds) IDR debt (bank loans) 3,563 2,925 45% USD debt (bonds) 55% IDR debt (bank loans) 460 529 604 191 352 2023 2024 2025 2026 2027 Historical Net Debt1 Currency Protection with Call Spread Options (in IDR bn) 14,000 12
Slide 16: Segment 1: Real Estate Overview
SEGMENT 1: REAL ESTATE OVERVIEW
Slide 17: Real Estate Business Highlights
Real Estate Business Highlights Property Marketing sales New projects in Financial Key takeaways and development performance 2Q23 performance going forward projects sold in 1H23 ▪ Landed residential: ▪ LPKR reports ▪ The Colony in ▪ Real Estate ▪ 1H23 marketing 51 projects strong 1H23 Lippo Village:
Slide 18: 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 19: 1H23 marketing sales highlights
1H23 marketing sales highlights 1H23 Marketing sales by location 1H23 Marketing sales by product type Lippo Village remained the largest contributor to 1H23 marketing sales with Landed housing sales contributed 53% to 1H23 marketing sales, mostly driven contributions of 41%, followed by Lippo Cikara
Slide 20: 1H23 project handover highlights
1H23 project handover highlights Real Estate’s 1H23 revenue improved by 17% YoY to IDR 2.2tn with 2Q23 revenue also improved by 52% QoQ, mainly driven by timely project handovers of landed housing and shophouses in Lippo Village and Lippo Cikarang. Lippo Village Lippo Cikarang Cendana 60 units – HVD
Slide 21: 1H23 marketing sales – new property development project highlights
1H23 marketing sales – new property development project highlights Throughout the first half of this year, LPKR successfully introduced a range of new products that have proven to be appealing to the market as shown by the strong take up rates. 1Q23 2Q23 Cendana Sold 92 units – 100% The Colony Sold
Slide 22: Product Focus: Landed housing (Cendana and The Colony Series)
Product Focus: Landed housing (Cendana and The Colony Series) LPKR continues to introduce highly appealing products under the Cendana Homes series, and in 2Q23, the Company debuts The Colony @ Himalaya, a premium designer home concept, located in the prestigious Lippo Village Central. Cendana Series
Slide 23: Product Focus: Mid-rise (URBNx) and Low-rise (Newville)
Product Focus: Mid-rise (URBNx Series), and Low-rise (Newville Series) Expanding horizons, LPKR introduces Newville – a low-rise apartment that seeks to create a vibrant urban living experience in Lippo Cikarang; and URBNx – a modern loft apartment concept to attract younger homeowners. Newville (Lo
Slide 24: Segment 2: Healthcare Overview
SEGMENT 2: HEALTHCARE OVERVIEW
Slide 25: Siloam maintains strong quarterly earnings despite Lebaran season
Siloam maintains strong quarterly earnings despite Lebaran season Quarterly Revenue¹ Revenue booked at EBITDA recorded at IDR4.09tn IDR1.21tn (in IDR bn) in 1H23 in 1H23 +5.4% 1,951 2,010 2,047 2,040 19.1% | 21.0% 47.6% | 47.7% 1,657 1,748 1,747 1,685 1,340 in 1H23 vs 1H22 in 2Q23 vs 2Q22 in 1H23 vs
Slide 26: Quarterly EBITDA is 335% higher compared to pre-COVID
Quarterly EBITDA is 335% higher compared to pre-COVID (2Q19) Revenue¹ EBITDA¹ (in IDR bn) (in IDR bn) +13% +35% 1,889 2,040 607 1,685 478 1,252 411 1,020 181 82 2Q19 2Q20 2Q21 2Q22 2Q23 2Q19 2Q20 2Q21 2Q22 2Q23 NPAT Operating Cash Flow (in IDR bn) (in IDR bn) +237% +29% 259 583 553 164 442 466 111 2
Slide 27: Supported by stable and sustained growth in operations
Supported by stable and sustained growth in operations Operational Results per Quarter – Inpatient Admissions Operational Results per Quarter – Occupancy Rate 68 71 72 64% 65% 61% 65% 66 55% 55% 56 51% 51% 51% 46 50 51 39 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q2
Slide 28: Private Payer Group continue to become majority of total revenue
Private Payer Group continue to become majority of total revenue % Contribution to Revenue 1H22 vs 1H2023 Private (OPE, Corp + Insurance) BPJS MoH* 17% 17.0% 2% 0.0% Private patients’ (OPE, Corporate & Insurance) 82% 82.9% revenue contribution remained above 80% in 1H2023 1H22 1H23 Payee Group Contr
Slide 29: Volume Contribution from Top 6 Craft Groups
Volume Contribution from Top 6 Craft Groups Top 6 Craft Groups Average Revenue per Day Top 6 Craft Groups Throughput (‘000) (Rp, mn) 200 4.5 +29.6% +38.4% 180 4.0 160 +12.6% 3.5 +28.2% 140 +11.9% 3.0 120 +29.8% 2.5 100 +15.1% 2.0 80 +18.9% +9.5% 1.5 60 +19.8% +8.2% +12.9% 1.0 40 20 0.5 0 0.0 2Q22 2Q
Slide 30: New method for classifying hospitals by customer segmentation
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 31: New Hospital Expansion – Manyar, Surabaya, East Java
New Hospital Expansion – Manyar, Surabaya, East Java Surabaya is the second largest city in Indonesia and is the most populous and developed in East Java by a large margin. In line with Siloam’s strategy to increase presence in premium markets, the Company has purchased a plot of land in Manyar regi
Slide 32: New Hospital Expansion – Kemang Antasari, South Jakarta
New Hospital Expansion – Kemang Antasari, South Jakarta Siloam is the leader in Premium Segment in its core Jakarta areas and Tangerang, and should continue to cement its position. In alignment with Siloam’s strategy to double down on premium market, the Company purchased a plot of land in Kemang, J
Slide 33: Segment 3: Lifestyle Overview
SEGMENT 3: LIFESTYLE OVERVIEW
Slide 34: Lifestyle segment: mall and hotel businesses
The lifestyle segment primarily consists of its mall and hotel businesses Malls business highlights Hotels business highlights ▪ 1H23 Mall revenue¹ increased by 59% YoY to IDR 275bn, ▪ 1H23 Hotel revenue¹ increased by 28% YoY to IDR 201bn, EBITDA¹ grew by 37% YoY to IDR 47bn; propelled by better EBI
Slide 35: Malls and hotels benefit from post-covid recovery
Malls and hotels businesses continues to benefit from post-covid recovery with 1H23 revenue increased by 59% and 28% YoY respectively Malls revenue¹ Hotels revenue¹ (in IDR bn) (in IDR bn) +39% +25% +59% +28% 275 201 158 173 128 143 1H21 1H22 1H23 1H21 1H22 1H23 Malls EBITDA¹ Hotels EBITDA¹ (in IDR
Slide 36: Malls and hotels occupancy rates catching up to pre-covid level
Malls and hotels 1H23 occupancy rate reached 81% and 64% respectively, catching up to pre-covid level Malls visitors¹ as % of average 2019 visitors Hotels occupancy only 4% below 2019 pre-COVID +12% +11% +13% +6% 69% 64% 67% 61% 61% -4% 55% 53% 1H21 1H22 1H23 1H21 1H22 1H23 1H19 (pre-covid) Mall occ
Slide 37: Sustainability
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Slide 38: 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 39: 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 40: 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 41: 2022 Sustainability Highlights
2022 Sustainability Highlights ENHANCING QUALITY OF LIFE CARING FOR OUR ENVIRONMENT INVESTING IN OUR PEOPLE Rp 14,809 B Conducted first bottom-up Developed Group-wide 64 % 40 % >170M Climate Risk Female Decarbonization 16,249 Female senior executives Indonesians served Revenue Assessment Strategy Emp
Slide 42: 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 43: Looking Ahead
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Slide 44: Looking Ahead
Looking Ahead Real Estate Healthcare Lifestyle ▪ Despite the economic uncertainty and ▪ Adoption of a new method for classifying ▪ Strong path to recovery on our Malls and higher inflation in 1Q23, we managed to hospitals, which is based on each Hotels with loosening restriction on travel achieve st
Slide 45: Appendices
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Slide 46: Consolidated Statutory Statement of Profit and Loss
Consolidated Statutory Statement of Profit and Loss P&L Highlights (in IDR bn) 1H23 1H22 YoY Changes Total Revenues 8,076 6,814 19% COGS (4,615) (3,987) 16% Gross Profit 3,461 2,826 22% Operating Expenses (2,092) (2,057) 1.7% Operating Profit 1,369 769 78% Other Income & Expenses - Net 1,265 (692) -
Slide 47: Consolidated Statutory Statement of Financial Position
Consolidated Statutory Statement of Financial Position Balance Sheet Highlights (in IDR bn) 1H23 1H22 1H23 1H22 ASSETS LIABILITIES & EQUITY CURRENT ASSETS CURRENT LIABILITIES Cash & Cash Equivalent 2,086 2,626 Bank Loans 2,568 2,046 Trade Accounts Receivable 2,002 1,742 Lease Liabilities 812 600 Inv
Slide 48: Consolidated Statutory Statement of Cash Flow
Consolidated Statutory Statement of Cash Flow Cash Flow Highlights (in IDR bn) 1H23 1H22 YoY Changes Cash at beginning 2,626 4,888 -46% Cash from operating activities: 157 (834) 119% Business operations 131 (164) 180% Placement for restricted funds 26 (670) 104% Cash from investing activities: (479)
Slide 49: Cash breakdown
Cash breakdown Cash breakdown – Jun 2023 Cash breakdown – Dec 2022 20 207 236 (1%) (8%) (11%) 17 (1%) 1,057 1,336 (51%) (51%) 1,066 774 (41%) (37%) Consolidated cash: IDR 2,086bn Consolidated cash: IDR 2,626bn Holdco (incld. Subs) LPCK Holdco (incld. Subs) LPCK SILO GMTD SILO GMTD 49
Slide 50: Financial Results (1H23 vs 1H22)
Financial Results (1H23 vs 1H22) 1H23 1H22 Real Estate Healthcare Lifestyle Total Particulars Real Estate Healthcare Lifestyle Total Real Estate Healthcare Lifestyle Total Rp % Rp % Rp % Rp % Revenue 2,184 5,282 610 8,076 1,870 4,410 533 6,814 314 17% 872 20% 77 14% 1,262 19% Gross profit 978 2,150
Slide 51: Financial Results (2Q23 vs 1Q23)
Financial Results (2Q23 vs 1Q23) 2Q23 1Q23 Real Estate Healthcare Lifestyle Total Particulars Real Estate Healthcare Lifestyle Total Real Estate Healthcare Lifestyle Total Rp % Rp % Rp % Rp % Revenue 1,319 2,628 314 4,261 865 2,654 296 3,815 453 52% (26) -1% 19 6% 446 12% Gross profit 606 1,067 223
Slide 52: Financial Results (2Q23 vs 2Q22)
Financial Results (2Q23 vs 2Q22) 2Q23 2Q22 Real Estate Healthcare Lifestyle Total Particulars Real Estate Healthcare Lifestyle Total Real Estate Healthcare Lifestyle Total Rp % Rp % Rp % Rp % Revenue 1,319 2,628 314 4,261 1,006 2,188 284 3,478 313 31% 440 20% 30 11% 783 23% Gross profit 606 1,067 22
Slide 53: Thank You
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Slide 54: Notes
@2LIPPO Notes 54
Slide 55: 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 55