53 slides from Pt Megapolitan Developments Tbk's investor presentation, August 2017
Slide 1: Company Presentation 8.2017 Bringing Dreams to Life
Company Presentation 8.2017 Bringing Dreams to Life 1
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 Page I. Megapolitan Developments at a Glance 4 II. Q2 Financial Updates 12 III. Project Updates 20 IV. NAV Guidance from Management 28 Appendix I : Key Investment Highlights 32 Appendix II : Portfolio Highlights 41 Appendix III : Others 53 3
Slide 4: I. Megapolitan Developments at a Glance
I. Megapolitan Developments at a Glance
Slide 5: The Premier Property Development Company: Group Overview
The Premier Property Development Company Group Overview PT Cosmopolitan Persada Lora Melani Lowas Barak Sudjono Barak Rimba Public Developments Rimba 66.78% 3.93% 3.93% 25.36% 99.66% 99.38% 99.00% 99.58% 99.95% 40% PT Mega PT Graha Mentari PT Tirta Persada PT Megapolitan PT Mega Limo Estate Pasangga
Slide 6: Our Projects are Situated in Emerging Prime Districts of Greater Jakarta
Our Projects are Situated in Emerging Prime Districts of Greater Jakarta * Karawaci * Kuningan Cinere 10km Sentul 6 * Past Projects
Slide 7: Our Longstanding Track Record since 1970s
Our Longstanding Track Record since 1970s Centro Cinere • Cinere Bellevue Mall • Cinere Bellevue Suites • Cinere One Residence • Cinere One Commercial Park Cinere Park View PT Megapolitan • Puri Cinere Developments • Griya Cinere 2 • Mal Cinere Vivo Sentul Corporation was • Bukit Griya Cinere • Mega
Slide 8: General Corporate Information
General Corporate Information Megapolitan Developments Tbk (EMDE.IJ) Incorporation Date : 10 September 1976 IPO Date : 12 January 2011 IPO Price : Rp 250 IPO Share : 850.00mm IPO Amount : Rp 212.5bn _______________________________________________________________________ Share Capital @30 June 2017 :
Slide 9: II. Q2 Financial Updates
II. Q2 Financial Updates
Slide 10: The Recovery Momentum Has Started
The Recovery Momentum Has Started… Good Signals from the Revenue and Marketing Sales Recovery in Marketing Sales (IDR bn)1 Stable Revenue Growth (IDR bn) 2011-2016 Q2 2016-7 577 5Y CAGR 27% 325.3 330.4 311.3 YoY CAGR 12% 387 225.1 363 310 322 Revenue 148.4 132.4 199 109.0 99.4 174 2012 2013 2014 201
Slide 11: Good Balance of Recurring and Development Income
Good Balance of Recurring and Development Income Revenue Breakdown Q2 2017 Revenue Breakdown Recurring Income Non-recurring Income (in IDR bn) Landed House Commercial Cinere Parkview 26.7 43.1 Rental 18% 29% 28.6 House 19% 49.9 Apartment 34% Cinere mall Apartment Expected Addition in 2018: Cinere Te
Slide 12: Portfolio Diversification Lead to a Stable Profitability
Portfolio Diversification Lead to a Stable Profitability Stable Gross Profit with Steady Net Income Growth Stable Gross Profit (IDR bn) Steady Net Income Growth (IDR bn) 2011-2016 Q2 2016-7 2011-2016 Q2 2016-7 Net Income 65.5 5Y CAGR 101% 61.3 5Y CAGR 27% 199.0 192.7 CAGR 6.9% 157.4 CAGR 4.9% 45.1 G
Slide 13: Income Statement
Income Statement Income Statement 30-Jun-16 30-Jun-17 ∆ YoY (%) Revenue 132,392,178,386 148,358,785,015 12% Commercial 19,529,075,455 43,142,696,608 121% Rental 46,612,332,886 49,888,255,914 7% Houses 62,672,868,954 28,590,852,857 -54% Apartment 3,577,901,091 26,736,979,636 647% COGS (47,770,944,349
Slide 14: Growing with Prudent Capital Management
Growing with Prudent Capital Management High FCCR and Spread Debt to Maturity New Under Construction Assets Coming Live Development Total Asset (in IDR bn) Hotel CAGR 11.1% 1,596.0 1,363.6 1,179.0 1,196.0 Vivo Vivo 894.5 938.5 Cinere Terrace Mall and suites 886.4 Mall Walk Increase in gearing since
Slide 15: Balance Sheet: Asset Breakdown
Balance Sheet Asset Breakdown Balance Sheet 30-Jun-16 30-Jun-17 ∆ YoY (%) Current Asset 560,685,748,660 974,227,848,769 74% Cash and cash equivalent 69,588,192,153 176,773,377,449 154% Trade receivables 136,403,259,106 177,313,798,391 30% Inventory 315,886,811,447 588,513,906,093 86% Advance and pre
Slide 16: Balance Sheet: Liabilities and Equity
Balance Sheet Liabilities and Equity Balance Sheet 30-Jun-16 30-Jun-17 ∆ YoY (%) Current Liabilities 326,515,929,824 363,610,733,362 11% Trade payables 73,644,958,393 76,073,757,976 3% Other Payables 17,173,645,324 20,857,307,389 21% Unearned revenue 143,898,216,355 96,017,477,256 -33% CPLTD1 32,367
Slide 17: III. Project Updates
III. Project Updates
Slide 18: Upside in Cinere Projects from Toll Roads
Upside in Cinere Projects from Toll Roads Continuing the Dominant Presence in Cinere Megapolitan Cinere Projects: The development of the two toll roads will give better access between Jakarta to Cinere area. This is expected to boost demand for Cinere property, and surely its market value. Depok-Ant
Slide 19: Cinere Parkview Landmark
Cinere Parkview EGAPOLITAN Landmark DEVELOPMENTS
Slide 20: Cinere Terrace Suites Construction Progress
Cinere Terrace Suites Construction Progress
Slide 21: Securing the Potential Upside in Cinere: Future Projects
Securing the Potential Upside in Cinere Future Projects at Cinere De Vonte Apartment Tower A Gross Area 16,196 sqm De Vonte Apartment Total Unit 512 will be located in Jl. Launch Date 2017 Cinere Raya, just Construction Start 2018 across the Cinere Target Completion Date 2020 Mall. De Vonte will Tow
Slide 22: Sentul, the Next Suburb of Greater Jakarta
Sentul, the Next Suburb of Greater Jakarta New Super Complex with Excellent Accessibility Megapolitan Sentul Projects: The under-construction LRT station in Sentul Circuit will be near the Vivo Sentul and Megapolitan Sentul City Project. The Bogor-Outer-Ring toll road will also give greater access b
Slide 23: Vivo Sentul Construction Progress
Vivo Sentul Construction Progress 23
Slide 24: Sentul as the Next Cinere for Megapolitan
Sentul as the “Next Cinere” for Megapolitan Future Projects at Sentul Vivo Residence Vivo Residence Type Landed house Vivo Residence is a Land Area 35,000sqm landed house project Total Unit 110 near the Vivo Sentul Launch Date 2018 super complex. Construction Start 2019 Target Completion Date 2021 S
Slide 25: IV. NAV Guidance from Management
IV. NAV Guidance from Management
Slide 26: Undervalued Price Considering Current NAV
Undervalued Price Considering Current NAV Management Estimates on Company’s NAV Acreage Estimate Amount Ha IDR thousand/sqm IDR bn Current Development Land Graha Cinere 1.8 2,250 40.9 Cinere Parkview 3.5 2,250 79.6 Centro Cinere & Riverside 17.9 6,000 1,075.8 Vivo Sentul Cimandala 6.6 5,000 331.2 Ha
Slide 27: Undervalued Price Considering Current NAV
Undervalued Price Considering Current NAV Management Estimates on Company’s NAV Megapolitan acquired land-bank in Sentul and Karawaci at a very low cost before the property boom (circa 2007 – 2010). The Company stands to reap huge upside potential when all these projects are fully developed. Current
Slide 28: Thank You
Thank You Contact Us: PT. Megapolitan Developments, Tbk The Bellagio Residence Jl. Mega Kuningan Barat Kav. E4 No. 03 Jakarta 12950 – Indonesia Telp : +62 21 3001 9938 Fax : +62 21 3001 9939 Email : corporate.secretary@megapolitan-group.com www.megapolitan-group.com 28
Slide 29: Appendix I: Key Investment Highlights
Appendix I : Key Investment Highlights 29
Slide 30: Key Investment Highlights
Key Investment Highlights 1. The Greater Jakarta Market’s Robust Growth Story 2. Ample Land Bank Inventory to Capture Future Growth 3. Diverse Project Portfolio Ensuring Earnings Stability 4. Professional Management Team with > 40 Years’ Experience 5. Holistic and Well Planned Business Strategy 30
Slide 31: Robust Potential of Greater Jakarta Markets
1. Robust Potential of Greater Jakarta Markets Modest Property Price Recovery Expected A. From 2010 to 2015, Jakarta population’s growth is much slower than Bogor Regency and Tangerang City population growth. It goes along with the assumption that Jakarta residents are looking for housing on the out
Slide 32: Upside in Jabodetabek Suburb from Infra Support
1. Robust Potential of Greater Jakarta Markets Upside in Jabodetabek Suburb from Infra Support C. Government budget for infrastructure development has been rising sharply since President Jokowi entered 1 office, reflected from the 225 infrastructure projects nationwide . We see potential positive va
Slide 33: Ample Land Bank Inventory for Future Growth
2. Ample Land Bank Inventory for Future Growth 348ha of Land Bank for Future Development Land under Available Land Bank Total Land Bank Location Project Development (ha) (ha) (ha) Graha Cinere 1.8 65.2 67.1 Cinere Parkview 3.5 - 3.5 Cinere Centro Cinere & Cinere Riverside 17.9 - 17.9 Puri Cinere - 1
Slide 34: Diverse Project Portfolio Ensures Stability
3. Diverse Project Portfolio Ensures Stability Portfolio of Recurring and Development Income Category Project Location Launch Date Type Status Cinere Bellevue Mall Cinere 2012 Leased mall 80% leased Cinere Terrace Walk Cinere 2014 Leased mall 30% leased Recurring Mall Cinere Cinere 1993 Leased mall
Slide 35: Experienced & Professional Management Team: Commissioners
4. Experienced & Professional Management Team Board of Commissioners Hongisisilia, SE Ak. Barbara Barak Rimba Experienced accountant and top 19 years of experiences as top management in multiple companies management in multiple companies Position : Independent Commissioner Position : Company Commiss
Slide 36: Experienced & Professional Management Team: Directors
4. Experienced & Professional Management Team Board of Directors Sentosa Budiman Ronald Wihardja 35 years of experience in developer 18 years of experience as top company management in multiple companies Position : Director since 2008 Position : Mananging Director since 2013 Lora Melani Lowas One of
Slide 37: Holistic and Well Planned Business Strategy
5. Holistic and Well Planned Business Strategy Aiming for Stable and Measured Growth Long Term Business Focus Expansion Strategies PROJECT CAPITAL OPTIMIZATION MANAGEMENT BUSINESS FINANCIAL • Amplify project • Strengthen Increasing competitive Maximizing financial commercial capital through advantag
Slide 38: Appendix II: Portfolio Highlights
Appendix II: Portfolio Highlights
Slide 39: Past Project Highlights
Past Project Highlights Bellagio Office, Mall, and Apartment Puri Cinere Office, mall, and apartment located in Mega Kuningan, Jakarta. 44.4ha area of landed house project in Cinere, Constructed in 2002 and finished in 2005 with more than 1,000 unit sold completed in 2000 and managed to sold >400 un
Slide 40: Cinere Project Locations
Cinere Project Locations EGAPOLITAN DEVELOPMENTS Pondok Indah ——_Fatmawati Cilandak Pasar Minggu | TOLL JAKARTA - SERPONG TOLL LINGKAR LUAR JAKARTA 8 MRT = mM Universitas F -_ — = Cinere > | fo Pangkalan Bellevue Mall fg sae Got Jakarta s Montessori 2 _ f School RS. Puri Cinere = Ati aya Univ. > & P
Slide 41: Centro Cinere – Cinere Bellevue
Centro Cinere – Cinere Bellevue Cinere Bellevue Mall , Suites, Commercial, and Kiosk Cinere Bellevue Mall Type Leased mall Apartment, mall, and Gross Floor Area 64,618sqm shop-houses on a Net lease area 22,949sqm 1.65ha block, located No of floor 6 Launch Date 2012 in Jl. Cinere Raya, Construction S
Slide 42: Centro Cinere – Cinere Terrace
Centro Cinere – Cinere Terrace Cinere Terrace Walk, Suites, and Commercial Cinere Terrace Walk Type Leased mall Another masterpiece on Gross Floor Area 21,471sqm 2.2ha of land on Cinere Net lease area 11,779sqm Raya. The super block is a No of floor 3 combination of mall, Launch Date 2014 apartment,
Slide 43: Centro Cinere – Residential
Centro Cinere – Residential Cinere One Residence Cinere One Residence Type Landed house Total land area 17,700sqm No of unit 47 Launch Date 2012 Construction Start 2013 Completion Date 2015 Status 92% sold Cinere One Residence is located in Jl. Cinere Raya as part of the super complex, Centro Cinere
Slide 44: Mall Cinere and De Vonte
Mall Cinere and De Vonte Mall Cinere Mall Cinere Type Leased mall Mall Cinere has become Total land area 13,000sqm one of main city landmark Gross area 24,149sqm in Cinere. Cinere No of floor 4 residents are familiar and Launch Date 1993 comfortable with the mall, Construction Start 1990 inferred by
Slide 45: Cinere Junction – Residential
Cinere Junction – Residential Cinere Parkview Cinere Parkview Type Landed house Total land area 73,000sqm No of unit 358 Launch Date 2013 Construction Start 2013 Target Completion Date 2017 Status 40% sold Graha Cinere – Phase IV Graha Cinere Type Landed house Total land area 23,960sqm No of unit 77
Slide 46: Sentul Project Locations
Sentul Project Locations Megapolitan Sentul City 46
Slide 47: Vivo Sentul
Vivo Sentul Vivo Mall, Walk, and Galeria Kiosk Vivo Mall, Walk, and Galeria Kiosk Total land area 28,000sqm Gross floor area 39,792sqm Hotel No of floor 7 Launch Date 2015 Construction Start 2016 Completion Date 2018 Vivo Vivo Mall Walk Construction in progress Vivo Mall & Walk Type Leased mall Stat
Slide 48: Tatya Asri Sentul
Tatya Asri Sentul New Jantra New Jantra Type Landed house Total land area 4,823sqm No of unit 35 Launch Date 2017 Construction Start 2018 Target Completion Date 2019 New Jantra is an affordable housing complex targeted for Indonesia middle class. House type sold are 40/72 Tatya Asri Commercial 3-4 T
Slide 49: Karawaci – The Habitat
Karawaci – The Habitat The Habitat The Habitat Type Apartment Total land area 18,700sqm No of tower 5 No of floor 5-6 Total unit 722 Launch Date 2008 Construction Start 2010 Target Completion Date 2018 Status 87% sold 49
Slide 50: Appendix III: Others
Appendix III: Others 50
Slide 51: Corporate Mission and Vision
Corporate Mission and Vision VISION Developing Quality Space in Balance and Harmony for Global Living Continuously Increase Company Performance and Give the Best Result to Our Stakeholders by 1. DELIVERING CUSTOMER SATISFACTION THROUGH HIGH QUALITY PRODUCTS, HIGH VALUE INVESTMENT, SAFETY AND SECURIT
Slide 52: Awards
Awards 2015 and previous years 2016 Action International Anugerah Perempuan Business Coaching Indonesia Award Melani Lowas Barak Top Property Award in Top Performer in The Best Action Plan Rimba as Top Woman Superblock Category – Property & Building Indonesia Region Leader Indonesia Vivo Sentul Cons
Slide 53: Awards
EGAPOLITAN DEVELOPMENTS