PT Jababeka Tbk. Nomura Asian High Yield Corporate Day November 10 Hong Kong

Transcription

1 PT Jababeka Tbk Nomura Asian High Yield Corporate Day 2016 November 10 Hong Kong

2 Leading township developer & infrastructure powerhouse PT Jababeka Tbk ("KIJA") is a leading township developer with an established track record in industry-based townships supported by residential & commercial components... Jababeka ("KIJA") overview Real Estate Industrial PT Jababeka Tbk Infrastructure Power Business segments FY15 Revenue Breakdown (%) (Rp 3,140 billion) Infrastructure & Port, 12% Real Estate & Others, 41% Residential Infrastructure Commercial Dry Port Established in 1989 and became the first publicly listed industrial estate developer in Indonesia in 1994 Kota Jababeka, KIJA's flagship development, is a mature industrybased integrated township in Cikarang with on-site power plant and dry port Pipeline projects: Kendal Industrial Park in Central Java and tourism-based township in Tanjung Lesung, Banten Large and strategically located land bank of 3,297 hectares as of 30 June 2016 Vision: To Create Modern Self Sustained Cities in Every Province in Indonesia and Provide Jobs for Better Life Power Plant, 48% Power Plant, 15% FY15 Gross Profit Breakdown (%) (Rp 1,389 billion 44% GPM) Infrastructure & Port, 12% Real Estate & Others, 72% with world class infrastructure to support its developments 1

3 Established track record in large-scale industrial estate + infrastructure More than 25 years track record in industrial township development Selected awards #1 #1 #1 Ministry of Industry Best Industrial Estate Infrastructure & Facilities #1 Indonesia Property Watch The best township development concept Fortune Indonesia Best Company award Investor Magazine Top 10 Best performing listed companies and Best listed company in property Bekasi Power Plant commenced operations D Khayangan Senior Living Launched Frontier Consulting Group Award 2014 #1 Corporate Image Industrial Estate 1989 Jababeka Group established and started development of the industrial estate 1994 IPO on Jakarta and Surabaya Stock Exchange Supply Chain Asia Awards 2014 Asia Logistics Centre/Park of the Year 1996 Acquisition of Menara Batavia in Jakarta CBD 2001 Inauguration of Education Park, including President University 2003 Commenced development of Jababeka CBD 2010 Cikarang Dry Port begins operations Acquisition of 1,500 ha land in Tajung Lesung, Banten Entered into a JV with Sembcorp to develop Kendal Industrial Park in Central Java 2

4 Sizeable land bank in strategic locations with upside potential Kota Jababeka Cikarang Master plan: 5,600 hectares 35km east of Jakarta Land Bank: 1,232ha (1) Karawang Tanjung Lesung Master plan: 1,551 hectares 170km southwest of Jakarta Land Bank: 1,551ha (1) Kendal, Central Java Master plan: 2,700 hectares 450km east of Jakarta Land Bank: 484ha (1) Note: 1 Land bank as at 30 June

5 Key credit strengths 1 Leading industry-based integrated township developer in Indonesia 2 The ONLY industrial developer with on-site power and dry port 3 Stable, USD-denominated recurring income from infrastructure operations 4 Diversified land bank and projects 5 Clear strategic focus over different time frames 6 Robust operating and financial performance 7 Experienced management team 8 Beneficiary of favourable macro and sector fundamentals 4

6 1 Kota Jababeka Flagship industry-based integrated township Kota Jababeka is a mature industry-based township strategically located in close proximity to Jakarta CBD, sea port and airport Toll Road Future Toll Road Soekarno- Hatta International Airport Tajung Priok Port (in km) Distance from Kota Jababeka Heavy industries & Petrochemicals Tangerang DKI JAKARTA Bekasi Automotive, Consumer, Electronics & other Light to medium industries Jakarta CBD 35 South Tangerang Kota Jababeka Seaport 55 Airport Strategically located in Cikarang area, the most established industrial estate zone in Greater Jakarta Close to central Jakarta, sea-port, airport and accessible by both toll and railroads Mature township with a well-established talent/labor pool supported by complementary facilities (residential, commercial, hospitality, etc) Superior infrastructure facilities which serve to enhance Kota Jababeka's competitive positioning for customers and is home to over 1,600 local and multinational customers from over 20 countries 5

7 1 Kota Jababeka Anchored by a blue-chip customer base The portfolio of high quality multinational and domestic customers at Kota Jababeka is a testament to the township's strategic location and superior infrastructure facilities Diverse mix of occupants across sectors (breakdown by number of occupants) As of 30 June 2016 Portfolio of high quality customers Electronics, 12% Consumer Goods, 7% Others, 44% Machinery, 7% Chemicals, 6% Automotive, 6% Textile, 2% Building, 3% Food, 5% Metal Fabrication, 4% Plastics, 6% 6

8 1 Kota Jababeka Continued build-out of complementary facilities Kota Jababeka has successfully achieved a critical mass of occupants which provides an opportunity to continue introducing complementary services and infrastructure to enhance the township's value proposition Residential Commercial Housing clusters High-rise residence The Veranda Tropikana Garden Elvis Tower Senior housing Sentra Niaga Square D Java Residence Simprug Garden Senior D Khayangan Simprug Plaza Mixed-use superblock developments within Kota Jababeka Partnered with Plaza Indonesia to develop MAYFAIR Estate & Park Land 70% Phase 1 Phase 2 30% 70% 30% Mixed use superblock on a 12-ha site Groundbreaking happened in June 2015; first stage of Phase 1 targeted completion in 2018 Phase 2 to be developed on a 4-ha site 7

9 2 Enhancing Kota Jababeka's value proposition: Bekasi Power Plant Jababeka is the only industrial estate developer in Indonesia with its own power plant located within its estate Integrated Power Generation & Distribution Process 130MW gas fired combined cycle plant % output to PLN Buy back from PLN (+16% margin) Direct sale to factories (+ margin) Improving efficiency, has led to higher margins PLN Factories Key highlights of operations at Bekasi Power Plant Providing a significant marketing advantage over its competitors as access to reliable electricity supply is one of the primary concerns for industrial clients in Indonesia 20 year 100% off-take agreement from Perusahaan Listrik Negara ( PLN ) Rate per KWH: ~US$11 cents Average gas cost / MMBTU: ~US$ Fuel costs borne by PLN on a pass-through basis Fully contracted gas supply Flexibility to buy back power and resell it at a premium In 2Q 2016, a leakage was found in a boiler of one of the Heat Recovery Steam Generators of the power plant. The repair was successfully completed in mid August During the repair, power plant operated at about 50% of the usual capacity IDR billion Description H16 1,600 1, % Net Dependable Capacity 118.8MW 120MW 119.9MW 1,400 1, % 14.0% 1,200 1, % 12.0% Load Factor 108MW 110MW 95MW 1, % 9.1% Capacity factor 90.01% 90.01% 79.97% % % % Equivalent Availability Factor 90.34% 96.39% 79.95% 400 Planned Outage Factor 7.88% 3.09% 8.15% % % - 0.0% Equivalent Forced Outage Rate 1.78% 0.52% 1.84% H16 Revenue Gross Profit Gross Profit Margin 8

10 1 Enhancing Kota Jababeka's value proposition: Cikarang Dry Port Strategic location in the heart of the largest manufacturing zone along the Bekasi-Cikampek industrial corridor MM 2100 EJIP LIPPO HYUNDAI JABABEKA GIIC 62% 1 SURYA CIPTA International Port Code: IDJBK Surrounded by 11 Industrial Estates and more than 3,000 manufacturing companies KIIC KIM KIKC KBI Notes: 1 Estimated % of total throughput at Tanjung Priok Port originating from this area 9

11 1 Enhancing Kota Jababeka's value proposition: Cikarang Dry Port Facilities & services offered at Cikarang Dry Port Container Yard Reefer Services Terminal Operation 24/7 Bonded Trucking Container Freight Station Rail Freight Service 24/7 Security Bonded Logistics Center 2 (under construction) Office: CDP, Customs, Quarantine, Banking Bonded Logistics Center Gate To Surabaya CFS Reefer Mobile X-Ray Physical Inspection Railway Emplacement To Tg Priok Bonded Logistics Center Special Containers Handling Integrated Customs & Quarantine Empty Container Depot Online Tracking & INSW Connected 10

12 2 Enhancing Kota Jababeka's value proposition: Cikarang Dry Port Cikarang Dry Port (CDP) is the first and only integrated customs and service estate in Indonesia Overview In April 2011, CDP became an official port of origin and destination with an international port code, IDJBK Adjacent to the main railway line that runs from west Java to east Java for domestic distribution Upside potential from direct rail connection to Tanjung Priok port Trial already took place in 1Q16. Bonded Logistics Centre for Cotton result from the 2 nd Economic Stimulus Package by the government Selected customer & partner profile at Cikarang Dry Port Strong momentum in CDP operations Revenue (IDR billion) Throughput (TEU) 60,000 50, H16 50, ,000 30,000 25,808 37,507 31,972 20,000 10,000 3,334 5, H16 allowing customers to more efficiently manage their imports and exports and benefit from cost savings 11

13 3 Sizeable and stable USD-denominated recurring income base The provision of these infrastructure services has enabled the progressive build out of a significant recurring revenue base Recurring (1) Real Estate (2) Total Revenue & Breakdown 41% % Recurring revenue & EBITDA (IDR billion) 2,000 1,800 1,600 1,400 1,592 1,349 1, ,200 43% 57% IDR 3,139 billion 1, % 51% 17% IDR 1,401 billion % IDR 2,740 billion IDR 2,799 billion H16 Recurring EBITDA Recurring Revenue based on USD pricing terms (power & water), further enhancing stability and visibility of cash flows for Jababeka and also providing a natural hedge for its USD-denominated interest expenses Furthermore, US$ 200 million notional is hedged by means of call spreads with an average lower strike at 13,021 Rupiah and an average upper strike of 15, Notes: 1 Recurring revenue/ebitda includes contribution from power plant, dry port and service & maintenance fees 2 Comprises real estate, golf and other non-infrastructure segments 12

14 4 Diversified land bank A geographically diversified land bank allows KIJA to capture different market segments and enhances earnings resilience Land bank breakdown by location (in hectares) Township Location Acquired land bank (June 30, 2016) Kota Jababeka Cikarang 1,232 Kendal Industrial Park Central Java 484 Tanjung Lesung Banten 1,551 Total 3,268 Kota Jababeka Established MNCs and domestic companies willing to pay a premium for strategic location and mature township with top notch infrastructure in place Kendal Industrial Park More cost-conscious customers looking for an alternative to Greater Jakarta industrial estates that still provides top notch infrastructure Tanjung Lesung Tourism, leisure and hospitality focused integrated township to tap into entertainment/leisure spending by rising middle class in Indonesia in addition to benefiting from future infrastructure developments across its land bank locations 13

15 4 Diversified projects: Kendal Industrial Park Kendal Industrial Park benefits from Sembcorp's expertise in developing and marketing industrial zones across Asia (China, Vietnam, Batam, Bintan, etc) Kendal Industrial Park is a JV between KIJA and Sembcorp Excellent connectivity to major infrastructure in Central Java 49% 51% Kendal Port Tanjung Emas Seaport Ahmad Yani Int'l Airport Semarang Total planned area: up to 2,700 ha Phase 1: 860 ha (484 ha acquired as of 30 June, 2016) Tanjung Emas Int'l Seaport Ahmad Yani Int'l Airport Semarang (provincial capital) Distance to Kendal Industrial Park 25 km 20 km 21 km and complemented by KIJA's long track record and experience in Indonesian industrial estate developments and infrastructure operations 14

16 Monthly minimum wage (IDR m) Average industrial land prices (USD/sqm) 4 Diversified projects: Kendal Industrial Park Our Kendal Industrial Park development in Central Java is well-positioned to benefit from growing demand for relatively low cost industrial estates with good connectivity and competitive labor costs Why Central Java? Affordable land prices relative to Greater Jakarta industrial estates Avg. Greater JKT industrial land price: US$175/sqm Bekasi Karawang Bogor Tangerang Serang Source: Colliers Indonesia Research 4Q 2014, converted using 1USD =12,245 IDR Relative low wages Semarang Serang Surabaya Bekasi Source: Colliers Indonesia Research 4Q 2014 Less congested infrastructure Kendal Industrial Park is situated along the Jakarta-Semarang-Surabaya Economic Corridor Increasing traffic congestion at Tanjung Priok Port in Jakarta has led to growing interest in alternative sites with good connectivity via air and sea Kendal Industrial Park's location provides access to Tanjung Emas Port in Semarang (25km away), the 3 rd largest deep sea port in Indonesia after Tanjung Priok (Jakarta) and Tanjung Perak (Surabaya) Ahmad Yani International Airport at Semarang is also only 20km away 15

17 4 Diversified projects: Kendal Industrial Park 16

18 4 Diversified projects: Tanjung Lesung Tanjung Lesung overview Location ~ 170 km southwest of Jakarta in Banten Concept Tourism-based integrated township (hotels, apartments, sailing, diving & beach clubs) Access Currently accessible by toll road from Jakarta in ~ 3.5 hours 17

19 4 Diversified projects: Tanjung Lesung Strong government support for Tanjung Lesung's development as a tourism zone, particularly in the form of building new toll road access to the area Facilities and infrastructure at Tanjung Lesung Strong government support for development of Tanjung Lesung Existing infrastructure includes access roads, a water treatment plant, wastewater treatment plant, electricity supply and telecommunication links Visitors currently have access to ~ 300 rooms spread out over two hotels/resorts, a bed and breakfast and several cottages Other facilities: restaurant and bar, driving range, a swimming pool, a spa, a beach club, a sailing club, school, mosque, residential housing units, and a medical clinic Included in the Master Plan for Acceleration and Expansion of Indonesian Economic Development (MP3EI) Infrastructure development pipeline which will improve access for Tanjung Lesung: New toll road from Serang Timur to Panimbang Recent events at Tanjung Lesung President Joko Widodo speaking on Tanjung Lesung s designation as Special Economic Zone for Tourism President Joko Widodo targets the development of the Tanjung Lesung special tourism economic area to complete in three years.. President Widodo said he set the three year deadline in line with construction time of the Serang-Panimbang toll road. President Widodo said the toll road will be built by the government. Indonesia Finance Today 23 Feb 2015 is expected to increase interest from potential investors/partners for the project 18

20 4 Diversified projects: Tanjung Lesung Golf course Beach at Tanjung Lesung Aerial view Villa with private pool at Tanjung Lesung 19

21 5 Clear strategic focus Jababeka's existing pipeline provides visible opportunities over different time frames Short Term Short-term focus will be to continue developing Kota Jababeka Township Medium Term Development of Bekasi Power Plant Phase 2 on vacant site adjacent to existing facility Development of Kendal Industrial Park in partnership with Sembcorp in central Java Development of Tanjung Lesung tourism-based township Long Term Vision Replicate Kota Jababeka's industry-based integrated township model throughout Indonesia Build out an infrastructure facility portfolio (power, water, ports, etc.) to support these new townships 20

22 6 Strong financial performance... Revenue breakdown (IDR billion) Gross profit (IDR billion) and Gross profit margin (%) 3,500 3,000 2,500 2,000 1,500 3,140 2,740 2,799 1,272 1,207 1,390 1,401 1,361 1,148 1, ,868 1,161 1, , ,600 1,400 1,200 1, % 53% ,389 1,252 1,171 41% 43% 45% 44% H H16 Recurring revenue Real estate & other revenue Gross profit Gross profit margin % 60% 50% 40% 30% 20% 10% 0% EBITDA (IDR billion) and EBITDA margin (%) 1,400 1,200 1, % 44% ,130 1,167 1,019 40% 37% 31% 37% H16 EBITDA EBITDA margin 60% 50% 40% 30% 20% 10% 0% Net income (IDR billion) H16 1 Notes: 1 Approximate unrealized foreign exchange loss (non cash) for FY11: IDR 7 billion, FY12: IDR 62 billion, FY13: IDR 420 billion, FY14: IDR 65 billion and FY15: IDR 156 billion 2 1H16 includes unrealized foreign exchange gain (non cash) of approximately IDR 174 billion 21

23 6 Robust balance sheet position Assets and cash (IDR billion) 12,000 10,000 8,000 6,000 4,000 2, ,470 6, ,660 7,911 8,914 9, H16 Cash and cash equivalents EBITDA/Interest expense (x) , , Notes: 1 Includes capitalized interest + Hedging Fees 8,255 8, ,741 10,036 Total assets (excluding cash) H16 Debt, Equity (IDR billion) and Debt/Equity 6,000 5,000 4,000 3,000 2,000 1, ,497 3, ,046 Net debt/ebitda (x) , ,186 2,572 2,705 4, ,978 5, ,510 3, H Total debt Total equity Debt/Equity H

24 7 Experienced management team Average of more than 20 years of industrial township development experience Board of Commissioners Setyono Djuandi Darmono President Commissioner (Founder) Bacelius Ruru Hadi Rahardja Vice President Commissioner Commissioner Independent Commissioner (Founder) Gan Michael Commissioner Ketut Budi Wijaya Commissioner / Independent Commissioner Board of Directors Budianto Liman Hyanto Wihadhi Sutedja Sidarta Darmono Tjahjadi Rahardja Setiawan Mardjuki President Director Director Director Director Director 23

25 China India US Indonesia Brazil Pakistan Nigeria Bangladesh Russian Mexico Japan Philippines Ethiopia Vietnam Egypt Germany Iran Turkey Congo Thailand UK France Italy S.Africa Myanmar Tanzania Korea Colombia Spain Kenya ,376 1,311 8 Favorable macro and sector fundamentals Strong real GDP growth outlook (%) F 2017F 2018F F 2017F 2018F Source: Statistics Indonesia, EIU - July 2016 Sizeable domestic market size world's 4 th largest population Continued growth in direct investments both FDI and domestic (IDR trn) Source: BKPM H Domestic Direct Investment FDI Greater Jakarta average industrial land prices (USD/sqm) 1,600 1, H Source: United Nations Department of Economic and Social Affairs - Population Division, as of July 2015 Source: Colliers Indonesia International research 24

26 Thank You