PT Indonesian Paradise Property Tbk · IDX:INPP
PT Indonesian Paradise Property Tbk — Investor Presentation (February 2020)
34 slides from PT Indonesian Paradise Property Tbk's investor presentation, February 2020
Slide 1: Company Presentation
PT INDONESIAN PARADISE PROPERTY TBK C O N F I D E N T I A L Company Presentation February 2020
Slide 2: Disclaimer
Disclaimer You must read the following before continuing. This presentation (the "Presentation") is for information purposes only, and does not constitute or form part of any offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for, or any offer to under
Slide 3: I. Company overview
Plaza Indonesia – Jakarta I. Company overview 2
Slide 4: An established integrated developer of iconic properties across key cities in Indonesia
An established integrated developer of iconic properties across key cities in Indonesia Target the Experienced Team Upper Middle Class in Indonesia through behind the success of various Quality Assets within its landmark projects Integrated Ecosystem Replicated Success across key cities in Indonesia
Slide 5: Focused business model on four key verticals
Focused business model on four key verticals 1 COMMERCIAL 2 HOSPITALITY 3 PROPERTY SALES 4 INVESTMENT Portfolio comprises of 3(1) Hospitality portfolio comprises Developer of over 600 35.3% stake in Plaza Description modern lifestyle concept 7 operating hotels under 7 exclusive units of high rise In
Slide 6: Presence across key cities in Indonesia
Presence across key cities in Indonesia Presence in 10 cities 16 operational assets 7 projects under development across Indonesia Across Hospitality, Commercial & In strategically chosen locations across Focused on tapping the upper-middle Property sales Indonesia income population Batam* Balikpapan
Slide 7: Diversified business model with high quality, resilient earnings profile
Diversified business model with high quality, resilient earnings profile INPP relative to its listed peers Debt to total equity(1) (%) 120% Highest 100% Proportion of recurring revenue IDR 13.8tn IDR 3.2tn Lowest 80% Proportion of debt to total equity SMRA APLN IDR 60% 18.1tn CTRA IDR IDR 16.3tn 40%
Slide 8: Portfolio overview
Portfolio overview Commercial portfolio beachwalk Lifestyle Mall – Bali 27,991 m2 NLA 23 Paskal Shopping Center – Bandung Park 23 Entertainment Center – Bali 41,520 m2 NLA 11,510 m2 NLA Note: Only selected commercial assets included on this page. Confidential | 7
Slide 9: Portfolio overview (cont'd)
Portfolio overview (cont’d) Hospitality portfolio Sheraton Kuta Hotel – Bali Maison Aurelia – Bali 203 rooms 42 rooms HARRIS Hotel Tuban – Bali HARRIS Hotel Batam Center – Batam 166 rooms 166 rooms HARRIS Resort Waterfront – Batam HARRIS fX Suites – Jakarta POP! Sangaji – Yogyakarta 250 rooms 144 ro
Slide 10: Portfolio overview (cont'd)
Portfolio overview (cont’d) Property sales beachwalk Expansion – Bali Aloft Hotel (178 rooms), Yello Hotel (145 rooms), Residence (36 rooms), Retail 5,325m2 NLA One Residence – Batam 31 Sudirman Suites – Makassar Residence (331 units) Residence (256 units), Hyatt Place (147 rooms) Note: Only selecte
Slide 11: Portfolio overview (cont'd)
Portfolio overview (cont’d) Investments portfolio Plaza Indonesia – Jakarta The Plaza Office Tower – Jakarta 73,002 m2 NLA 54,162 m2 NLA Grand Hyatt Hotel – Jakarta 427 rooms fX Sudirman Mall – Jakarta HARRIS Tebet – Jakarta Keraton at The Plaza –Jakarta 33,235 m2 NLA 179 rooms 140 rooms Confidentia
Slide 12: II. Key investment highlights
beachwalk Lifestyle Mall – Bali II. Key investment highlights 11
Slide 13: Key investment highlights
Key investment highlights 1 Established integrated real estate developer with diversified, high quality and resilient business model 2 End-to-end business model complete with a DIRE platform 3 Proven track record of growth driving value accretion for shareholders 4 Well-positioned trends to capture
Slide 14: Established integrated real estate developer with diversified and resilient business model
1 Established integrated real estate developer with diversified and resilient business model Complementary portfolio with diversified business segments… …supported by robust debt metrics (%) Net revenue by segment GP by segment Property Property sales sales 40% 10% Hospitality 18% Hospitality 35% 38
Slide 15: End-to-end business model complete with a DIRE platform
2 End-to-end business model complete with a DIRE platform Recurring revenue Property Property development Asset recycling and reinvestment management Local network and partnerships High quality earnings profile Potential to leverage on DIRE by recurring revenue as an instrument to raise funds
Slide 16: Total asset growth and key milestones
3 Proven track record of growth, … INPP has been able to pivot its business model to adapt to changes in the real estate landscape in Indonesia, allowing it to exponentially increase its asset size at a CAGR (FY10-19) of 29% Focus on CBD Property Sales as Focused on Mixed-use areas in key part of mi
Slide 17: … driving value accretion for shareholders
3 … driving value accretion for shareholders Sahid Kuta Lifestyle Resort expansion (SKLR 2) In Q1 2017, we demolished our HARRIS Kuta Hotel and we are developing a mixed used property at the same location It is expected to consist of two hotels (a three-star hotel, YELLO and a four-star hotel Al
Slide 18: Well-positioned to capture upside from favorable macro and industry trends
4 Well-positioned to capture upside from favorable macro and industry trends Strongest GDP amongst ASEAN countries Young population and consumptive culture driving retail demand GDP (USD bn) Percentage of population between 25 and 44 as a % of total population based on 2018 4.2% Largest economy with
Slide 19: INPP's strategy is aligned with key government initiatives & strong macroeconomic tailwinds
4 INPP’s strategy is aligned with key government initiatives & strong macroeconomic tailwinds Balikpapan Bali Semarang INPP’s current and upcoming developments Key Government Initiatives • Ground breaking will • Government is planning to • A new toll road is planned commence for the new build a new
Slide 20: Experienced management team with support and commitment from founder
5 Experienced management team with support and commitment from founder Management team Agoes Soelistyo Santoso Anthony Prabowo Susilo Diana Solaiman Alexander N. Nartates Vice President Commissioner Vice President Director & Director & CFO Chief of Investor Relations & former CEO CEO 20 4 16 5 Pre
Slide 21: III. Growth strategy
One Residence – Batam III. Growth strategy 20
Slide 22: Focus on the development of larger, integrated multi-purpose real estate developments
Focus on the development of larger, integrated multi-purpose real estate developments In the coming years, INPP expansion plan is to progress away from single-asset developments to focus on LARGER INTEGRATED PROJECTS Existing Current Developments Upcoming Developments Bali – Park 23 Entertainment Ce
Slide 23: Current and upcoming project launches
Current and upcoming project launches Current Upcoming 31 Sudirman beachwalk Dome CBD Pearl of Java, One Residence Sentul City Cikarang Suites Expansion Balikpapan Semarang Location Batam Makassar Bali Sentul Balikpapan Semarang Cikarang Project site area (m2) 3,883 3,752 17,040
Slide 24: Strategy to drive next phase of growth
Strategy to drive next phase of growth Optimize returns and productivity through active management initiatives at the asset level Leverage successful track record in developing Focus on core and operating iconic lifestyle destinations competencies, Continued focus on mixed use development, ope
Slide 25: IV. Financial highlights
23 Paskal Shopping Center – Bandung IV. Financial highlights 24
Slide 26: Key financial highlights
Key financial highlights Net revenue(1) Gross profit (GP) (IDR bn) (IDR bn) 770 598 4 681 64% 62% 70% 71 2 2 122 – 375 293 300 494 303 321 416 422 256 2017 2018 9M2019 2017 2018 9M2019 Hospitality Commercial Property Sales Others GP GP margin EBITDA(2) Net profit for the year (IDR bn) (IDR bn) 25% 1
Slide 27: Revenue breakdown: Commercial
Commercial Key financial and operating highlights Weighted average rental rate(1) Weighted average occupancy rate(1) Lease Expiry Profile(1) (IDR ‘000) (%) (% of NLA of leases expiring) 52.6% Operating highlights 90.3% 93.4% 83.4% 199 214 212 WALE of 3.7 years as of 9M 2019 21.8% 11.3% 8.2% 6.0% 201
Slide 28: Revenue breakdown: Hospitality
Hospitality Key financial and operating highlights Weighted average daily room rate(1) Weighted average occupancy rate(1) Weighted RevPAR(1) (IDR ‘000) (%) (IDR ‘000) Operating highlights 753 76.7% 72.2% 604 575 748 68.6% 501 698 2017 2018 9M2019 2017 2018 9M2019 2017 2018 9M2019 Net revenue(2) (IDR
Slide 29: Capital expenditure and debt maturity profile
Capital expenditure and debt maturity profile Total projected capex over the next 3 years (IDR bn) 2,010 1,465 567 2020 2021 2022 Debt maturity profile (as of 30 Sep 2019) USD and IDR debt (IDR bn) Total debt (IDR tn) 469 1.5 1.7 1.2 120 40.3% 45.6% 255 66.3% 144 350 147 138 95 255 59.7% 73 54.4% 14
Slide 30: Appendix
Sheraton Bali Kuta Resort – Bali Appendix 29
Slide 31: Estimated appraised value of assets (Sep 19)
Estimated appraised value of assets (Sep 19) Assets Land INPP Asset Valuation INPP value Start of Category stake 30-Sep-19 (based on Company Project Location operation Sqm (%) (IDR mn) % stake) Sheraton Bali Kuta Resort 694,962 437,095 IPI Bali 2012 35,422 62.89% beachwalk Shopping Center 1,506,933
Slide 32: Corporate structure
Corporate structure Star East Development Elysium Investment PT Grahatama Kreasibaru Anemone Continental SA Others Corporation Partners Ltd 37.0% 22.1% 20.6% 18.0% 2.2% Market capitalisation of IDR 11.0tn(1) Commercial Hospitality Property sales Investments Name Stake Name Stake Name Stake Name Stak
Slide 33: Illustrative DIRE financial impact on INPP
Illustrative DIRE financial impact on INPP Before DIRE Simas Plaza Indonesia transaction After DIRE Simas Plaza Indonesia transaction INPP INPP 35.3% 42.6% DIRE Simas Plaza Indonesia PLIN 44.1% 95.3% PIM PLIN Plaza Indonesia - fX Sudirman Mall - Plaza Indonesia - Jakarta Jakarta Keraton at T
Slide 34: DIRE Regulation
DIRE Regulation On December 21, 2017, OJK issued OJK Regulation No. 64/POJK.04/2017 of 2017 regarding Real Estate Investment Fund in the Form of Collective Investment Contract (“OJK Regulation 64 of 2017”) which became effective as of December 22, 2017 Investment A DIRE may be used as an instrumen
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