PT Lippo Karawaci Tbk · IDX:LPKR

PT Lippo Karawaci Tbk — FY2019 Earnings Presentation

80 slides from PT Lippo Karawaci Tbk's earnings presentation, June 2020

  1. Slide 1: PT Lippo Karawaci Tbk FY19 Results Presentation

    PT Lippo Karawaci Tbk FY19 Results Presentation June 2020

  2. Slide 2: Shareholder Structure

    Shareholder Structure As of 31 December 2019 As of 31 December 2018 No. of No. of Change No. Description No. of Shares % No. of Shares % Investors Investors YTD (%) I. Domestic Insurance 36 629,830,720 0.9% 17 780,351,000 3.4% -19.3% Individual 10,491 2,134,292,043 3.0% 8,503 1,163,018,443 5.0% 83.5

  3. Slide 3: Contents

    Contents Business Model 04 - 06 Recent Developments 07 - 14 FY19 Financial Data 15 - 34 Subsidiaries 35 - 51 Turnaround Initiatives 52 - 55 Meikarta 56 - 59 Corporate Data 60 - 63 Appendix 64 - 77

  4. Slide 4: One of Indonesia's largest integrated real estate developers

    One of Indonesia’s largest integrated real estate developers One of the largest diversified publicly Market leader in property development, lifestyle listed property companies in Indonesia by total malls, and healthcare in Indonesia assets and revenue  Ongoing development of 6 projects (2) with GFA

  5. Slide 5: Simplified organization and refocused strategy

    Simplified organization and refocused strategy Pillar Land Banking & Development Real Estate Management & Services Investments and Fund Management  Development of residential, commercial  Management of real estate assets, as  Management of third-party capital for and industrial properties well as

  6. Slide 6: Simplified organization and refocused strategy HoldCo

    Simplified organization and refocused strategy Revised strategy focused on disciplined capital allocation approach across segments and supported by efficient asset rotation HoldCo  No increase in head office personal expenses over the next 3 years  No increase in consolidated leverage coupled with

  7. Slide 7: Recent events highlights

    Recent events highlights PT Lippo Karawaci Tbk ("LPKR") and Japan-based SoftBank Corp. ("SoftBank"), announced a cooperation in the development of “Artificial Intelligence” (AI) and "Internet of Things" (IoT) powered A solutions. We aim to develop Lippo Village as a Smart City. Smart Cluster Managem

  8. Slide 8: Progress on Deleveraging

    Progress on Deleveraging Total Debt 2016(1) to Present Debt(1) to Equity Ratios 2016 to Present Rp bn (x) 16,000 14,872 0.90 13,663 13,811 2,134 14,000 12,252 0.79 x 2,981 0.80 2,977 0.74 x 1,090 12,000 0.70 x 0.70 0.60 x 10,000 0.60 8,000 0.56 x 0.50 12,738 0.49 x 11,162 10,830 10,686 6,000 0.40 0.

  9. Slide 9: Progress on Deleveraging (2)

    Progress on Deleveraging (2) Net Debt(1) - 2016 to Present Cost of Debt(1) - 2016 to Present Rp bn 9.5% 9.2% 14,000 13,054 9.0% 8.9% 12,000 11,273 8.5% 10,413 10,000 8.0% 7,567 7.5% 8,000 7.4% 7.0% 6,000 6.5% 6.6% 4,000 6.0% 2,000 5.5% - 5.0% 2016 2017 2018 2019 2016 2017 2018 2019 (Rp bn) 2016 2017

  10. Slide 10: Where the Existing Pipeline Project Funds Have Been Spent

    Where the Existing Pipeline Project Funds Have Been Spent Cost to Completion Construction Progress Percent Complete 60.00% $ 230mn 54.16% $ 212 mn 50.00% $ 180 mn $ 160 mn 40.00% 42.43% 30.00% 31.73% 28.30% 20.00% 10.00% 0.00% March 2019 June 2019 September 2019 December 2019 1Q2019 2Q2019 3Q2019 4Q

  11. Slide 11: Commitment to deliver existing key projects

    Commitment to deliver existing key projects Millenium Village – Ahead of targeted construction schedule Target Launched 2014 1Q20 completion Estimated Total construction residential 454 $33 mn costs to units completion % Sold as 100,716 Total GFA per 31 Dec 73% September 19 December 19 sqm 2019 Emba

  12. Slide 12: Commitment to deliver existing key projects (cont'd)

    Commitment to deliver existing key projects (cont’d) Kemang Village Hotel / Office – On Schedule Target Launched 2007 1Q20 completion Estimated construction Total units 95 N.A. costs to completion % Sold as Total GFA 21,937 sqm per 31 Dec 0% September 19 December 19 2019 Holland Village – Ahead of t

  13. Slide 13: Meikarta

    Meikarta Construction Status Sales Pickup Rp mn Units 50% 49% 60,000 140 45% 132 43% 48,938 120 40% 50,000 111 46,555 114 35% 100 35% 40,000 37,368 37,806 98 36,859 35,480 30% 80 74 28% 30,000 80 25% 25,352 24,549 60 20% 63 20,000 40 15% 14% 13,067 39 10,465 7,231 10,000 28 24 10% 20 11% 21 4,842 7%

  14. Slide 14: Meikarta: Significant progress in 2019

    Meikarta: Significant progress in 2019 October 2019 December 2019 ~500ha of total landbank for long term development over phases Phase 1  Consists of ~84 ha  Significant funds already invested into key foundation infrastructure for “Phase 1 +” Phase 1A  Consists of ~28 ha  62 towers, of which 44

  15. Slide 15: FY19 Financial Data

    LIPPO FY19 FINANCIAL DATA

  16. Slide 16: LPKR Financials as of FY19

    LPKR Financials as of FY19 Revenue (Rp Bn) EBITDA (Rp Bn) Real Estate Healthcare Malls Others Fund Mgmt. Revenue Real Estate Real Estate Fund Mgmt. EBITDA & Development (Mgmt & Svcs) & Investment & Development Mgmt & Services & Investment Recurring Income Recurring Income Net Profit (Rp Bn) Free Cas

  17. Slide 17: Starting to see resolution in existing pipeline projects

    Starting to see resolution in existing pipeline projects Completed projects with units ready to be sold Total Total 3Q19 Est. value 4Q19 Est. value Target 3Q19 Account 4Q19 Account Percentage Project Stake Type GFA residential of Unsold Units of Unsold Units Completion Rec. ($m) Rec. ($m) Sold (sqm)

  18. Slide 18: Net asset value breakdown

    Net asset value breakdown Ow n ersh i p ( % ) Lan d A rea ( h a) A ssets V al u e ( $m) U RB A N DE V E LOPME N T : 1A) Lippo Village 100% 424 2,399 1A) Lippo Cikarang 81% 455 1,035 1C) Tanjung Bunga 62.7% 192 118 1A) San Diego Hills 100% 91 189 1C) Micro Suburbs 100% 20 25 SU B T OT A L 3,765 LA RG

  19. Slide 19: Key Financial Highlights

    Key Financial Highlights FY19 FY18 Change (%) Presales (Rp billion) 1,846 1,598 16% Revenue (Rp billion) 12,320 11,453 8% Recurring Revenue (Rp billion) 9,345 8,360 12% EBITDA (Rp billion) 1,299 2,296 -43% EBITDA Margin 11% 20% -2% Net Income (Rp billion) (1,983) 720 -375% Net Debt/Equity Ratio (X)

  20. Slide 20: Marketing sales on track with adjusted target

    Marketing sales on track with adjusted target FY19 FY19 FY19 FY19 Land Marketing Sales by Location Marketing Project Location Marketing Units ASP (Rp 16 Sales Target Sales (Rp Bn) Sold Mn/sqm) (Rp Bn) 142 392 155 Lippo Village West Greater Jakarta 154 362 19 18.9 Lippo Cikarang: 832 978 198 111 Resi

  21. Slide 21: Property marketing sales by structure

    Property marketing sales by structure F Y 19 (in Rp bn) F Y 15 F Y 16 F Y 17 F Y 18 F Y 19 G uidance Residential 3,039 973 423 1,336 860 915 Low Rise 1,129 573 227 1,190 668 685 High Rise 1,910 400 196 146 192 230 Commercial 127 - 63 19 130 45 Industrial 279 75 78 81 714 405 Unique Product SDH 178 1

  22. Slide 22: Full impact of rights issue improves B/S & deleveraging

    Full impact of rights issue improves B/S & deleveraging (Rp Billion C onsolidated) ASSETS FY19 FY18 LIABILITIES & STOC KHOLDERS' EQUITY FY19 FY18 C urrent Assets C urrent Liabilities Cash & Cash Equivalent 4,685 1,818 Bank Loan 747 1,495 Investments 7,731 4,846 Other Debt - Non Bank 82 119 Account R

  23. Slide 23: Debt maturity profile

    Debt maturity profile Debt breakdown Debt maturity Profile (as of FY19) Coupon rate Coupon rate $ million 7% pa 6.75% pa 8% 450 409.3 417.0 400 350 300 92% 250 200 $ Bonds Rp Bank Loans 150 100 5% 42.1 50 5.3 12.5 8.2 3.0 0 2020 2021 2022* 2023 2024 2026 Rp Loans (Local) Bonds (in $m) 2020 2021 2022

  24. Slide 24: 4Q19 Net Loss Compared to 4Q18

    4Q19 Net Loss Compared to 4Q18 (in Rp million) 4Q19 4Q18 Change % FY19 FY18 Change % Total Revenues 4,046,249 3,184,641 861,608 27% 12,320,248 11,452,799 867,449 8% COGS 2,738,595 1,804,390 934,205 52% 7,724,006 6,200,783 1,523,223 25% Gross Profit 1,307,654 1,380,251 (72,597) -5% 4,596,242 5,252,01

  25. Slide 25: Review of One off items

    Review of One off items (Rp billion) FY19 FY18 YoY% Comments  FY18 had one time sales of Rp838 Revenue 12,320 11,453 7.6% bn and FY19 of Rp65 bn that impacted revenues  Impacted by non-recurring gains in EBITDA 1,299 2,296 -43.4% 2018 and non-recurring losses in 2019 Net income (1,983) 720 -375.4%

  26. Slide 26: High quality revenue profile with significant visibility

    Business is underpinned by a high quality revenue profile with significant visibility High proportion of revenue attributable to recurring income streams Recurring vs Development revenue 73% 27% 76% 24% 73% 27% 76% 24% (Rp bn) 12,320 11,453 10,962 10,071 125 213 1,696 228 1,779 506 2,224 246 1,726 4

  27. Slide 27: Balance sheet highlights

    Balance sheet highlights Total assets (Rp Bn) Total capitalization (Rp Bn) 60,000 50,000 45,000 50,000 8,315 1,047 40,000 12,080 11,301 10,210 5,801 35,000 40,000 8,062 1,114 1,122 4,308 4,685 13,638 14,621 5,601 1,299 5,830 30,000 3,527 2,538 7,731 30,000 3,900 1,818 25,000 13,536 3,250 4,700 4,367

  28. Slide 28: Key credit metrics

    Key credit metrics Net debt / EBITDA (x) (1) EBITDA / Interest (x) (2) 20.7 2.1 1.7 1.1 5.6 5.7 0.5 4.2 2016A 2017A 2018A 2019A 2016A 2017A 2018A 2019A Net debt / Total assets (%) Net debt / Total equity (%) 26% 53% 52% 24% 46% 22% 13% 22% 2016A 2017A 2018A 2019A 2016A 2017A 2018A 2019A (1) FY 2019

  29. Slide 29: Key Operational Metrics of Recurring Income Assets

    Key Operational Metrics of Recurring Income Assets Occupancy Trend Occupancy Trend Occupancy Trend Malls Under Management Network of Hospitals Hotels Under Management 90% 70% 76% 75% 88% 88% 58% 59% 88% 60% 57% 55% 88% 87% 74% 73% 50% 48% 50% 86% 85% 72% 71% 71% 40% 84% 70% 30% 68% 82% 68% 82% 68% 2

  30. Slide 30: Income statement details

    Income statement details Property marketing sales (Rp Bn) Revenue (Rp Bn) 2,500 14,000 12,000 125 213 1,696 2,000 228 10,000 246 1,779 506 - 142 2,224 1,726 403 938 353 - 8,000 397 1,500 162 81 19 714 7,018 1,109 6,000 5,965 154 5,168 5,306 1,000 75 - 4,000 130 138 1,336 2,000 78 2,990 2,396 3,093 2

  31. Slide 31: Historical capex spending & land bank purchases

    Historical capex spending & land bank purchases Capex Spending (Rp Bn) 12,000 SILO GMTD LPCK LPKR 10,000 1,925 8,000 6,000 1,480 7,011 4,000 2,401 2,197 3,699 2,000 1,598 1,641 1,096 1,051 873 98 75 844 331 331 248 136 477 958 798 80 468 - 279 2014 2015 2016 2017 2018 2019 Acquisition of Land for De

  32. Slide 32: Currency risk is offset by our hedging strategy

    Currency risk is offset by our hedging strategy Hedging BOND 2022 11,500 14,000 17,000 BOND 2026 11,500 14,500 17,000 COUPON 2026 13,300 15,500 17,000 Hedged Unhedged Amount Lower Upper Description Maturity ($m) Strike (Rp) Strike (Rp) From time to time, the Company Bond 2022 409.3 11,500 14,000 Apr

  33. Slide 33: Rental Payment to REITS

    Rental Payment to REITS Rp Bn  Expected reduction in net rental payments from 2022 onwards as certain lease rental agreements mature and are renegotiated 1,189  There is a portion that is reflective of exchange rate changes between SGD and 1,200 IDR  The annual changes are linked to Sg CPI change

  34. Slide 34: Extension of the long-stop date for completion of sale of Puri Mall

    Extension of the long-stop date for completion of sale of Puri Mall 1 Puri Mall Strata process is currently pending the below: • Regulatory body approval • Governor’s approval • Administrative process to obtain the legalization of segregation deed and registration of title 2 Once Strata is issued, L

  35. Slide 35: Subsidiaries

    LIPPO SUBSIDIARIES

  36. Slide 36: Siloam's Strategic Growth to Take Advantage of the Market Potential

    36 Siloam’s Strategic Growth to Take Advantage of the Market Potential SH Mataram Owned Hospitals SH Bekasi Timur SH Bangka SH Palangka Belitung Raya SH Paal Dua SH SH Cirebon SH Jember RSU Kelapa Dua Balikpapan SH Lippo BIMC SH Lubuk RSU Syubbanul SH Jambi Asri Sentosa Cikarang Nusa Dua Linggau Wat

  37. Slide 37: Siloam hospitals EBITDA & EBITDA Margin by Segments FY19

    Siloam hospitals EBITDA & EBITDA Margin* by Segments FY19 (IDR bn) Margin: 9% Margin: 37% Contribution: 4% Margin: -46% Contribution: 14% Contribution: -13% Margin: 27% 39 Contribution: 63% 141 134 Contribution: -27% 266 623 Margin: 31% Contribution: 59% 994 591 Flagship Mature Distinct BPJS Ramping

  38. Slide 38: Siloam Hospitals - Flagship Hospitals

    38 Siloam Hospitals - Flagship Hospitals Land/ Year Bed Operational GPs & Name Class Region Nurses Centre of Excellence Accreditation Building Opened Capacity Beds Specialists Ownership Cardiology, SH Lippo 1. Greater Orthopedics, B 1996 308 274 253 407 Village Jakarta Neuroscience, JCIA Emergency C

  39. Slide 39: Siloam Hospitals - Mature Hospitals

    39 Siloam Hospitals - Mature Hospitals Year Bed Operational GPs & Land/Building Name Class Region Nurses Centre of Excellence Accreditation Opened Capacity Beds Specialists Ownership SH Surabaya B 3. East Java 2002 160 147 156 247 Cardiology, Emergency SH Lippo Occupational Health, B 2. West Java 20

  40. Slide 40: Siloam Hospitals - Mature Hospitals (Cont'd)

    40 Siloam Hospitals - Mature Hospitals (Cont’d) Year Bed Operational GPs & Land/Building Name Class Region Nurses Accreditation Opened Capacity Beds Specialists Ownership RS Umum Putera C 2. West Java 2017 114 94 44 116 Bahagia RS Hosana C 2. West Java 2017 98 72 43 91 Bekasi 3. West Nusa SH Mataram

  41. Slide 41: Siloam Hospitals - Distinct Hospitals

    41 Siloam Hospitals - Distinct Hospitals Date Bed Operational GPs & Land/Building Name Class Region Nurses Centre of Excellence Accreditation Opened Capacity Beds Specialists Ownership 1. Greater SH Cinere C 2012 203 33 22 61 Cardiology Jakarta BIMC Kuta C 3. Bali 2013 39 18 44 59 Tourists, Emergenc

  42. Slide 42: Siloam Hospitals - BPJS Hospitals

    42 Siloam Hospitals - BPJS Hospitals Date Bed Operational GPs & Land/Building Name Class Place Nurses Accreditation Opened Capacity Beds Specialists Ownership 1. Greater RSUS B 2012 640 250 137 245 Jakarta SH B 2. West Java 2014 235 228 79 263 Purwakarta SH 3. East Nusa B 2014 416 140 68 215 Kupang

  43. Slide 43: Siloam Hospitals – Ramping Up Hospitals

    43 Siloam Hospitals – Ramping Up Hospitals Date Bed Operational GPs & Land/Building Name Class Region Nurses Accreditation Opened Capacity Beds Specialists Ownership SH Buton C 4. Sulawesi 2016 140 80 33 89 SH 3. East Labuan C Nusa 2016 124 95 27 71 Bajo Tenggara SH Bogor C 2. West Java 2017 246 56

  44. Slide 44: Siloam Hospitals – Ramping Up Hospitals (Cont'd)

    44 Siloam Hospitals – Ramping Up Hospitals (Cont’d) Date Bed Operational GPs & Land/Building Name Class Region Nurses Accreditation Opened Capacity Beds Specialists Ownership RS Siloam Lubuk C 5. Sumatera 2018 175 45 35 54 Linggau SH Jember C 3. East Java 2018 323 30 32 46 SH 2. Central D 2018 50 17

  45. Slide 45: Lippo Cikarang balance sheet and marketing sales

    Lippo Cikarang balance sheet and marketing sales Balance Sheet (Rp Billion) Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Assets 5,477 5,727 11,267 9,226 12,219 Debt 30 - 249 - 200 Liability 1,813 1,483 4,734 1,696 1,337 Equity 3,633 4,244 6,533 7,530 10,882 Return on Assets (%) 16.7% 9.4% -7.3% 21.3

  46. Slide 46: Lippo Cikarang summary income statement

    Lippo Cikarang summary income statement Revenue (Rp Bn) EBITDA (Rp Bn) 2,500 1,200 2,210 1,014 985 2,120 1,000 932 2,000 1,803 800 606 1,695 600 496 1,545 1,501 1,500 400 200 1,000 - 2014 2015 2016 2017 2018 2019 (200) (400) 500 (600) (800) - (768) 2014 2015 2016 2017 2018 2019 (1,000) Marketing Sal

  47. Slide 47: Lippo Malls

    Lippo Malls Dominant position in retail development & property management, through management of 51 malls throughout Indonesia  3.5 million sqm GFA  As of December 31, 2019 : Overall average occupancy 87.3% and 91.5% in LMIRT properties MANAGED MALLS: PIPELINE MALLS: LIPPO MALL PURI CITY WALK LIPP

  48. Slide 48: Lippo Malls - Existing Network across Indonesia

    Lippo Malls- Existing Network across Indonesia Sumatra Existing Network Kalimantan Sulawesi Area : 687,378 sqm Area : 24,852 sqm Area : 142,620 sqm NLA* : 322,774 sqm NLA* : 17,606 sqm NLA* : 73,712 sqm Occupancy : 90% Occupancy : 83% Occupancy : 73% ARR* (‘000) : Rp 106/sqm/mo ARR* (‘000) : Rp 95/s

  49. Slide 49: Aryaduta Hotels

    Aryaduta Hotels Aryaduta Hotel Aryaduta Hotel Imperial Aryaduta Aryaduta Hotel Aryaduta Hotel Aryaduta Hotel Jakarta Pekanbaru Hotel & Country Club, LK Medan Manado Kuta Bali Occupancy rate 71.0% 60.1% 80.7% 82.3% 78.9% 77.4% Avg room rate (Rp '000/room/day) 563 345 608 520 424 853 Number of rooms 3

  50. Slide 50: Lippo Malls REIT – Manages retail malls and retail spaces

    Lippo Malls REIT – Manages 23 retail malls and 7 retail spaces S$ Millions 4Q19 4Q18 Y-O-Y FY19 FY18 Y-O-Y Gross Rental Income (GRI) 39.5 36.6 8.1% 155.3 155.2 0.0% Total Gross Revenue 69.6 63.7 9.2% 273.0 230.3 18.5% Net Property Income (NPI) 47.6 38.4 23.9% 176.2 165.0 6.8% Distributable Income to

  51. Slide 51: First REIT – LPKR decreases ownership to 4.0% in 4Q19

    First REIT – LPKR decreases ownership to 4.0% in 4Q19 S$ Millions 4Q19 4Q18 Y-O-Y FY19 FY18 Y-O-Y Rental and Other Income 28.9 29.3 -1.6% 115.3 116.2 -0.8% Net Property Income 28.3 28.5 -0.8% 112.9 114.4 -1.3% Distributable Income 17.2 17.0 0.9% 68.5 67.7 1.2% DPU (cents) 2.15 2.15 - 8.60 8.60 - S$

  52. Slide 52: Turnaround Initiatives

    LIPPO TURNAROUND INITIATIVES

  53. Slide 53: Update on Transformation Plan / Funding Program

    Update on Transformation Plan (E) Pro - (A) (C) (D) (B) Status Forma Event Announced Variance Contracted / Comments FY19 Variance March 2019 (C=B-A) Committed (E=C+D) LPKR Rights LPKR Rights Issue $730m $787.5m $58m $58m • Investment by anchor investors for over $230m Issue • Strong shareholder resp

  54. Slide 54: Delever, improve liquidity and generate returns

    Delever, improve liquidity and generate returns Comprehensive funding programme Strategic initiatives to delever, improve liquidity and generate returns ($m) Shore up 20 Delever liquidity Generate returns 186 186 218 218 48 788 808 188 188 168 168 LPKR Right Myanmar Total Funding Bond buyback Liquid

  55. Slide 55: Commitment to deliver existing key projects

    Commitment to deliver existing key projects Investment in existing key projects Sources Uses ($m)  Refers to unsold units from completed projects  Inventories are ready to be sold with no further construction costs 200 160 18 21  Refers to progress payments to be 150 collected from sold 229 units

  56. Slide 56: Meikarta

    LIPPO MEIKARTA

  57. Slide 57: Meikarta: our next development initiative (cont'd)

    Meikarta: our next development initiative (cont’d) Investment in LPCK / Meikarta Sources Uses ($m)  LPCK will launch a concurrent rights issue to raise the funds required for the completion of its Meikarta project 180  LPKR invested $188m through rights issuance of LPCK 400  Rights issuance was c

  58. Slide 58: Strategic region for growth – between Jakarta & Bandung

    Strategic region for growth – In between 2 of Indonesia’s largest cities (Jakarta & Bandung); West Java is Indonesia’s most populous province SURROUNDED BY FORTUNE 500 COMPANIES  4.000 MULTINATIONAL COMPANIES  1 MILLION CAR PRODUCTION / YEAR  10 MILLION MOTORCYCLES PRODUCTION / YEAR  12.000 EXPA

  59. Slide 59: New infrastructure underway increasing accessibility to Industrial Estates

    New infrastructure underway increasing accessibility to Industrial Estates, Future driver of FDI KERTAJATI INTERNATIONAL AIRPORT PATIMBAN DEEP SEAPORT Estimated cost: Rp 25.4 Tn. Estimated cost: Rp 40.0 Tn. Estimated completion: Already Operational Estimated completion: End of 2021 (Partial) ELEVATE

  60. Slide 60: Corporate Data

    LIPPO CORPORATE DATA

  61. Slide 61: 4Q19 Shareholder Structure

    4Q19 Shareholder Structure Lippo Related Companies Public < 5% 58.07% 41.93% No of Floating Stocks : 70,591,913,869 (excl. Treasury Stocks) 51.1% 81.0% 62.7% 100.0% 100.0% Title Two PT Gowa Makassar Title Four Title Three PT Asiatic Sejahtera PT Siloam International PT Bowsprit Asset PT Lippo Cikara

  62. Slide 62: Notes Outstanding

    Notes Outstanding Theta Capital Pte. Ltd Theta Capital Pte. Ltd Theta Capital Pte. Ltd $260m $417m $149.3m 7.0% Senior Notes 6.75% Senior Notes 7.0% Senior Notes Reg S Reg S Reg S Due 2022 Due 2026 Due 2022 August 2016 October 2016 April 2014 D C CC CCC- CCC CCC+ B- B B+ BB- BB BB+ BBB- BBB BBB+A- A

  63. Slide 63: New leadership team focused on corp. governance and transparency

    New leadership team focused on corp. governance and transparency Board of Commissioners provides adequate representation to minority shareholders John A Prasetio Dr. Stephen Riady George Raymond Zage III Kin Chan Anangga W. Roosdiono Independent President Commissioner Commissioner Commissioner Indep

  64. Slide 64: Appendix

    LIPPO APPENDIX

  65. Slide 65: The Lippo Group operates across multiple industries

    The Lippo Group operates across multiple industries Regional Presence in China, Hong Kong, Japan, Singapore, Korea, and Macau Indonesia CORE INVESTMENT FOUNDATION Property Healthcare Retail & Financial TMT Education 65

  66. Slide 66: Nationwide presence across Indonesia creates network effect

    Nationwide presence across Indonesia creates network effect Business segment Growth metrics Cummulative Marketing Sales Sumatra Kalimantan Sulawesi(4) (Rp Bn)1) 18,272 5 10 2 1 1 3 Property 4.4x Development 3 4 2 4,115 2013A 2019A # of malls under management 51 Kalimantan 34 1.5X Sumatra Lifestyle M

  67. Slide 67: Residential & Urban development

    Residential & Urban development Lippo Village – in Karawaci, West of Jakarta Dev. Rights 3,226 ha Acq. Land 1,418 ha Jobs 48,734 Landbank 304 ha Houses 10,593 Roads Built 113,5 km Condos 5,686 Shophouses 1,193 Trees Population 59,519 58,199 planted Lippo Cikarang– East of Jakarta Dev. Rights 3,250 h

  68. Slide 68: Residential & Urban development

    Residential & Urban development Tanjung Bunga– Makassar, South Sulawesi Dev. Rights 1,500 ha Acq. Land 651 ha Jobs 14,724 Landbank 276 ha Houses 7,075 Roads Built 26,7 km Shophouses 199 Trees Population 21,030 13,199 planted San Diego Hills Memorial Park & Funeral Homes Master Plan 500 ha Acq. Land

  69. Slide 69: Regulatory Accounting Changes - Context

    Regulatory Accounting Changes - Context Old PSAK 23/34/44 Revenue Old PSAK 30 Leases  Separate models for: Construction  Dual lease model Contracts, Real estate developments, Goods and Services  Off-balance sheet treatment  Focus on risk & reward New PSAK 72 Revenue New PSAK 73 Leases  Single m

  70. Slide 70: Key Principles - PSAK 72 & 73

    Key Principles - PSAK 72 & 73 PSAK 72 PSAK 73 No impact on actual cash flow. Significant impact on reporting of financial statements: The new standard require recognition of Revenue based on when control is transfer to the customer.  All leases (operating and finance lease) will be recognized: Ther

  71. Slide 71: Regulations becoming more conducive to growth

    Regulations becoming more conducive to growth Property Type Old Regulation New Regulation In 2019 the regulators have: I II III & above I II & above Landed Property > 70 sqm 85% 80% 75% - 80%  Increased the transaction 22-70 sqm - 85% 80% - 85% price the for super luxury tax <= 21 sqm - - - - - to

  72. Slide 72: Foreign ownership remains a challenge

    Foreign ownership remains a challenge 72

  73. Slide 73: Overview of Jakarta's Condominium market

    Overview of Jakarta’s Condominium market Quarterly & Annual Condominium Sales 8,000 25,000 7,000 20,000 6,000 5,000 15,000 Units 4,000 Units 3,000 10,000 2,000 5,000 1,000 0 0 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

  74. Slide 74: Overview of Jakarta's shopping mall & CBD office market

    Overview of Jakarta’s shopping mall & CBD office market Quarterly and Annual Shopping Mall Net Absorption 120,000 295,000 100,000 245,000 80,000 195,000 60,000 Sqm 145,000 Sqm 40,000 95,000 20,000 0 45,000 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13

  75. Slide 75: Indonesia – An Underpenetrated Healthcare Market

    Indonesia – An Underpenetrated Healthcare Market 53,000 238,000 Doctors in Indonesia(1) Total number of Hospital Beds in Indonesia(1) 2.0 264,000,000 9.0 Doctors to 10,000 population in Indonesia(1) Beds to 10,000 population in Indonesia(1) The Population of Indonesia 12.5 21.0 Doctors to 10,000 pop

  76. Slide 76: Strong growth in private insurance and government healthcare spend

    Strong growth in private insurance and government healthcare spend BPJS Participation (million people) (3) Annual value of private medical insurance continue to % of BPJS coverage increase(1). 79% US$2bn 71% 65% 188 208 172 +186% US$0.72bn 2007 2020 2016 2017 2018 The number of insured people by pri

  77. Slide 77: LPKR's trading performance

    LPKR’s trading performance LPKR historical Price / NAV per share post global financial crisis Rp Period Price / NAV 2,000 average Min Average Max 2015 1.3X 1.6X 1.9X 1,500 2017 0.5X 0.8X 1.0X 2019 0.2X 0.5X 0.7X 1,000 500 0 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 NAV pe

  78. Slide 78: Notes

    Notes:

  79. Slide 79: Notes

    Notes:

  80. Slide 80: Investor Relations

    Investor Relations Bret Ginesky Head of Investor Relations : [email protected] : +62 21 25669078 : www.lippokarawaci.co.id

PT Lippo Karawaci — FY2019 Earnings Presentation on 6ix