Leading township developer & infrastructure powerhouse

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2 Leading township developer & infrastructure powerhouse PT Kawasan Industri Jababeka Tbk. ("KIJA") is a leading township developer with an established track record in industrybased townships supported by residendal & commercial components... KIJA overview Real Estate PT Kawasan Industri Jababeka Tbk Infrastructure Business segments FY16 Revenue Breakdown (%) (Rp 2,931 billion) Infrastructure & Port 14% Industrial ResidenDal Commercial Power Infrastructure Dry Port Power Plant 45% Real Estate & Others 41% 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 Park by the Bay in Central Java, tourism-based township in Tanjung Lesung, Banten and a tourism development project in Morotai Large and strategically located land bank of 3,394 hectares as of 30 September 2017 Vision: To Create Modern Self Sustained Ci4es in Every Province in Indonesia and Provide Jobs for Be>er Life Power Plant 13% FY16 Gross Profit Breakdown (%) (Rp 1,243 billion 42% GPM) Infrastructure & Port 16% Real Estate & Others 71% with world class infrastructure to support its development 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 Investor Magazine Top 10 Best performing listed companies and Best listed company in property Indonesia Property Watch The best township development concept Fortune Indonesia Best Company award SWA Magazine Top 25 Most Crea_ve Companies in Indonesia #1 FronDer ConsulDng Group Award 2014 #1 Corporate Image Industrial Estate Jababeka Group established and started development of the industrial estate 1994 IPO on Jakarta and Surabaya Stock Exchange Supply Chain Asia Awards 2014 Asia Logis_cs Centre/Park of the Year 1996 Acquisi_on of Menara Batavia in Jakarta CBD Inaugura_on of Educa_on Park, including President University #1 Ministry of Industry Best Industrial Estate Infrastructure & Facili_es Commenced development of Jababeka CBD 2010 Cikarang Dry Port begins opera_ons 2011 Acquisi_on of 1,500 ha land in Tanjung Lesung, Banten Bekasi Power Plant commenced opera_ons D Khayangan Senior Living Launched Groundbreaking Kendal Industrial Park Park by the Bay 2

4 Sizeable land bank in strategic locadons with upside potendal Kota Jababeka Cikarang Master plan: 5,600 hectares 35km east of Jakarta Land Bank: 1,231ha (1)! Fully integrated and matured city development 35km east of Jakarta, 45mins from Jakarta s CBD! Most established industrial area in Greater Jakarta, home to >2,000 local and muldnadonal companies INDONESIA Tanjung Lesung Kota Jababeka Cikarang Kendal, Central Java Semarang Surabaya Karawang Tanjung Lesung Master plan: 1,551 hectares 170km southwest of Jakarta Land Bank: 1,551ha (1)! Designated strategic estate Kendal, Central Java status under presidendal! Designated as a Special Economic Zone Master plan: 2,700 hectares decree 450km east of Jakarta! Strategically located along Located 170km southwest of Jakarta and covers 1,500 Land Bank: 583ha the Jakarata-Semarang-! (1) ha of untouched peninsula facing the Indian Ocean! Surabaya Economic Envisaged to become a first-class integrated resort Offers a deep pool of young Corridor desdnadon for both domesdc and internadonal tourists! and skilled labour at a compeddve cost Note: 1 Land bank as at 30 September

5 Overview of Porholio Three diversified pillars of growth underpinned by strong recurring revenue base Real Estate (1) Industrial Water Treatment Plant Infrastructure Waste Water Treatment Plant Leisure & Hospitality Golf & Country Club Senior Khayangan The Jababeka Industrial Estate ResidenDal Veranda Commercial D Cataluna Candi Residence at D Java The Oscar Beverly Hills D Java Residence Tropikana Garden Graha Asri Riverview Residence Kota Jababeka Bekasi Power Cikarang Jababeka Golf & Country Club President Lounge Magelang Borobudur Interna4onal Golf & Country Club Ruko Hollywood Arcade Thamrin Boulevard East Park Commercial Centre Boulevard Arcade EducaDon Park Ruko D Java Sentra Niagra Square Movie Boulevard Cortes Resto Plaza Trace Rodeo Drive Hollywood Boulevard Ruko Green Market Kios Green Market Riverwalk Cikarang Dry Port Main Lobby, The President Lounge - Jakarta Metro Suites Metro Hotel Kota Jababeka Botanic Garden Kota Jababeka Educa4on Park Note: 1 KIJA also owns 5,947 sqm of space in the Jakarta strata _tle building Menara Batavia and has _tle to 12,035.7 sqm in The City Center, a strata _tled office tower adjacent to Menara Batavia Jababeka Botanic Gardens 4

6 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 operadons 4 Diversified land bank and projects 5 Clear strategic focus over different Dme frames 6 Robust operadng and financial performance 7 Experienced management team 8 Beneficiary of favourable macro and sector fundamentals 5

7 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-Hana InternaDonal Airport Tanjung Priok Port Heavy industries & Petrochemicals Tangerang DKI JAKARTA (in km) Distance from Kota Jababeka South Tangerang Bekasi AutomoDve, Consumer, Electronics & other Light to medium industries Jakarta CBD 35 Seaport 55 Kota Jababeka 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/labour pool supported by complementary facili_es (residen_al, commercial, hospitality, etc) Superior infrastructure facili_es which serve to enhance Kota Jababeka's compe ve posi_oning for customers and is home to over 1,600 local and mul4na4onal customers from over 20 countries 6

8 1 Kota Jababeka Anchored by a blue-chip customer base The porholio of high quality muldnadonal and domesdc customers at Kota Jababeka is a testament to the township's strategic locadon and superior infrastructure facilides Diverse mix of occupants across sectors (breakdown by number of occupants) As of 30 Sept 2017 Porholio of high quality customers Electronics, 11% Customer Goods, 7% Others, 44% Machinery, 7% Chemicals, 6% Automotive, 6% Plastics, 6% Tekstile, 2% Metal Fabrication, 4% Building, 4% Foods, 5% 7

9 1 Jababeka Residence A City for Your World Kota Jababeka has successfully achieved a cridcal mass of occupants which provides an opportunity to condnue introducing complementary services and infrastructure to enhance the township's value proposidon ResidenDal Housing clusters The Veranda Tropikana Garden D Java Residence Senior housing Simprug Garden High-rise residence D Khayangan - Senior living Elvis Tower Commercial Sentra Niaga Square Simprug Plaza 8

10 1 Kota Jababeka Enhancing value through Joint Venture projects PT PP ProperD (Persero) Tbk PT Plaza Indonesia Realty Tbk JV 1 51% 49% Riverview Residence JV 1 30% 70% MAYFAIR Estate & Park Land 4 apartment towers strategically located near the toll exit Catering to the lower end of the market Tower 1 Mahakam Tower 90% sold out & topped off, hand-over expected late 2018 Tower 2 Bangawan Tower soo-launched with > 140 units sold 47.4% Mixed use superblock on a 12-ha site right next to the golf course Groundbreaking happened in June 2015; piling completed Launch imminent JV % 70% Mixed use superblock on a 4.6-ha site With 6 apartment towers and Japanese style mall First apartment tower to be launched later this year JV 2 30% To be developed on 4-ha site adjacent to JV 1 Concept to be decided on at a later stage to support / complement JV 1 9

11 1 Kota Jababeka Kawana Golf Residence Kawana Golf Residence The One & Only Golf Residence in Indonesia Kawana Golf Residence is a JV between KIJA s Jababeka Residence (60%) and Creed Group (40%) from Japan High-end golf view apartment tower with 234 units Phase 1 launched in December: 100% sold phase 2 to be launched later 10

12 2 Enhancing Kota Jababeka's value proposidon: Bekasi Power Plant KIJA is the only industrial estate developer in Indonesia with its own power plant located within its estate Integrated Power GeneraDon & DistribuDon Process Financial Highlights IDR billion 1,600 1,400 1,200 1, , % , % output to PLN Buy back from PLN (+16% margin) Direct sale to factories (+ margin) 12.2% 1, % 1, % 16.5% 1, M17 Revenue Gross Profit Gross Profit Margin PLN Factories 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 130MW gas fired combined cycle plant 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 OperaDonal Highlights DescripDon M17 Net Dependable Capacity 118.8MW 120MW 120MW 120MW Load Factor 108MW 110MW 93MW 107.1MW Capacity factor 90.01% 90.01% 81.85% 93.05% Equivalent Availability Factor 90.34% 96.39% 82.85% 98.06% Planned Outage Factor 7.88% 3.09% 15.15% 1.16% Equivalent Forced Outage Rate 1.78% 0.52% 2.00% 0.29% Providing a significant marke4ng advantage over its compe4tors as access to reliable electricity supply is one of the primary concerns for industrial clients in Indonesia 11

13 2 Enhancing Kota Jababeka's value proposidon: Cikarang Dry Port Strategic locadon in the heart of the largest manufacturing zone along the Bekasi-Cikampek industrial corridor Enhanced Accessibility with New Toll Gate KM 29 Cikarang Utama Toll Gate Highway Exit KM 29 New Toll Gate KM 29 MM 2100 EJIP LIPPO JABABEKA 62% 1 HYUNDAI GIIC SURYA CIPTA Flyover to Jakarta KIIC KIM KIKC KBI InternaDonal Port Code: IDJBK Surrounded by 11 Industrial Estates and more than 3,000 manufacturing companies with excellent transport connec4vity Notes: 1 Estimated % of total throughput at Tanjung Priok Port originating from this area 12

14 2 Enhancing Kota Jababeka's value proposidon: Cikarang Dry Port FaciliDes & services offered at Cikarang Dry Port Container Yard Reefer Services Terminal OperaDon 24/7 Bonded Trucking Container Freight StaDon Rail Freight Service 24/7 Security New 10,000 m2 warehouse New Customs Office Office: CDP, Quarantine, Banking Bonded Logistics Center Gate To Surabaya CFS Reefer Mobile X-Ray Physical Inspection Railway Emplacement To Jakarta / Tanjung Priok Bonded LogisDcs Center Special Containers Handling Integrated Customs & QuaranDne Empty Container Depot Online Tracking & INSW Connected 13

15 2 Enhancing Kota Jababeka's value proposidon: Cikarang Dry Port Cikarang Dry Port (CDP) is the first and only integrated customs, quarandne and logisdcs facility in Indonesia Strong momentum in CDP operadons Overview Since 2012, Cikarang Dry Port is an official port of origin and des_na_on with interna_onal port code IDJBK now connected with 29 major shipping lines Integrated port and logis_cs facili_es with mul_ modal transporta_on services Besides export/import, CDP also serves as hub for domes_c distribu_on via main railway line that runs from west Java to east Java Bonded Logis_cs Centre (FTZ facili_es) for Coxon & minerals/ metals with a 2 nd warehouse completed in 1Q 2017 to accommodate more coxon traders and other commodi_es Selected customer & partner profile at Cikarang Dry Port Shipping Lines: Revenue (IDR billion) , Throughput (TEU) , M17 Third Party LogisDcs Provider (3PL): 60,000 50,000 50,844 54,191 Shippers / Consignees: 40,000 30,000 25,808 37,507 20,000 10,000-5, M17 allowing customers to more efficiently manage their imports and exports and benefit from cost savings 14

16 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 Total Revenue & Breakdown Recurring revenue (IDR billion) Recurring (1) Real Estate (2) 41% % 2,000 1,800 1,600 1,400 1, % 1,349 1, % 1, % 1, % 1, % 30.0% 25.0% , % % IDR 2,799 billion 57% IDR 2,931 billion % M % 10.0% 83% 17% Recurring EBITDA Recurring Revenue EBITDA Margin IDR 1,401 billion 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 no4onal is hedged by means of call spreads with an average lower strike of 13,021 Rupiah and an average upper strike of 15,997 Rupiah Notes: 1 Recurring revenue/ebitda includes contribu_on from power plant, dry port and service & maintenance fees 2 Comprises real estate, golf and other non-infrastructure segments 15

17 4 Diversified land bank A geographically diversified land bank allows KIJA to capture different market segments and enhances earnings resilience Diversified by geography, posidoning and segment Land Bank Total (1) : 3,365ha Kota Jababeka Kendal Industrial Park Park by the Bay Tanjung Lesung 1,231ha 583ha 1,551ha PosiDoning Established MNCs and domes_c companies willing to pay a premium for strategic locadon and mature township with top notch infrastructure in place More cost-conscious customers looking for an alternadve to Greater Jakarta industrial estates that sdll provides top notch infrastructure Tourism, leisure and hospitality focused integrated township to tap into entertainment/leisure spending by rising middle class in Indonesia Well diversified across muldple segments (Breakdown of segments by 2016 revenue contribudon) Real Estate (2) : 41% Recurring (3) : 59% 3% 6% 7% 1% 2% 45% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Land Industrial Commercial Residen_al Tourism Golf Power Plant Service & Maintenance in addi4on to benefi4ng from future infrastructure developments across its land bank loca4ons Notes: 1 As per 30 September 2017 and excluding Morotai, with 29ha of land bank 2 Comprises real estate, golf and other non-infrastructure segments 3 Recurring revenue includes contribu_on from power plant, dry port and service & maintenance fees 16

18 4 Diversified projects: Kendal Industrial Park Park by the Bay Kendal Industrial Park Park by the Bay benefits from Sembcorp's experdse in developing and markedng industrial zones across Asia (China, Vietnam, Batam, Bintan, etc) Kendal Industrial Park Park by the Bay is a JV between KIJA and Sembcorp Excellent connecdvity to major infrastructure in Central Java 49% 51% Kendal Port Tanjung Emas Seaport Ahmad Yani Int'l Airport Semarang Total planned area: 2,700 hectares Phase 1: 860 ha (583 hectares as of 30 September 2017) Distance to Kendal Industrial Park Park by the Bay Tanjung Emas InternaDonal Seaport (Indonesia's 3 rd largest) 25 km Ahmad Yani InternaDonal Airport 20 km Semarang (Central Java capital) 21 km and complemented by KIJA s long track record and experience in Indonesia industrial estate developments and infrastructure opera4ons 17

19 4 Diversified projects: Kendal Industrial Park Park by the Bay Our Kendal Industrial Park Park by the Bay development in Central Java is well-posidoned to benefit from growing demand for reladvely low cost industrial estates with good connecdvity and compeddve labor costs Key Highlights Kendal Industrial Park Park by the Bay offers customers an affordable product with top notch infrastructure Low labour costs in Central Java makes Kendal Industrial Park Park by the Bay par_cularly interes_ng for labor intensive industries Kendal Industrial Park Park by the Bay is situated along the Jakarta-Semarang-Surabaya Economic Corridor Increasing traffic conges_on at Tanjung Priok Port in Jakarta has led to growing interest in alterna_ve sites with good connec_vity via air and sea Diverse mix of occupants across sectors (breakdown by number of occupants) As of 30 September 2017 Others, 9% F&B, 9% Manufacturing, 34% Furniture, 13% Official opening ceremony on November 14 th 2016 by the President of Indonesia, Mr Joko Widodo, and the Prime Minister of Singapore, Mr Lee Hsien Loong Building Materials, 16% Logis_cs, 19% 18

20 4 Diversified projects: Kendal Industrial Park Park by the Bay 19

21 4 Diversified projects: Tanjung Lesung Malaysia Tanjung Lesung overview Singapore Indonesia Tanjung Lesung LocaDon Concept ~ 170 km southwest of Jakarta in Banten Tourism-based integrated township apartments, sailing, diving & beach clubs) (hotels, Australia Access Currently accessible by toll road from Jakarta in ~ 3.5 hours Merak SOEKARNO HATTA InternaDonal Airport Krakatau Mountain Anyer Serang Jakarta Tanjung Lesung Panaitan Island Labuan Panimbang Pandeglang Future Toll road Jakarta-Merak Toll Road Ujung Kulon NaDonal Park President Joko Widodo speaking on Tanjung Lesung s designadon as Special Economic Zone for Tourism 20

22 4 Diversified projects: Tanjung Lesung Strong government support for Tanjung Lesung's development as a tourism zone... FaciliDes and infrastructure at Tanjung Lesung Exis_ng infrastructure includes access roads, a water treatment plant, wastewater treatment plant, electricity supply and telecommunica_on links Visitors currently have access to ~ 300 rooms spread out over two hotels/resorts, a bed and breakfast and several coxages Golf course Other facili_es: restaurant and bar, driving range, a swimming pool, a spa, a beach club, a sailing club, school, mosque, residen_al housing units, and a medical clinic Strong government support for development of Tanjung Lesung " One of 10 New Tourism Des_na_ons in Indonesia that the Indonesian Government is promo_ng Aerial view " New toll road from Serang Timur to Panimbang: A consor_um led by PT Wijaya Karya Tbk (Persero) won the tender for this project, land acquisi_on and prepara_ons for construc_on are underway " Tanjung Lesung has been designated as Special Economic Zone for Tourism Villa with private pool at Tanjung Lesung is expected to increase interest from poten4al investors/partners for the project 21

23 4 Diversified projects: Tanjung Lesung Current property products KALICAA VILLA 22

24 4 Diversified projects: Morotai Future tourism and logisdcs hub strategically located in the heart of Pacific Asia with natural tropical beauty and World War 2 charm Morotai Strategically located in the Halmahera group of eastern! Indonesia s Maluku islands, in the heart of Pacific Asia in between Asia and Australia 3 hours flight from Singapore and Taipei! Great potendal for tourism, agricultural and fishing! industries and as a logisdcs hub Morotai is a Special Economic Zone for tourism and 1 of 10! new tourism desdnadons promoted by the government Beach view at Morotai PT Jababeka Morotai has been appointed as the implemen_ng en_ty of the Morotai development project by the Coordina_ng Ministry of Economic Affairs of the Republic of Indonesia Currently holds 29ha of land bank at Morotai for development Evening view at Morotai 23

25 5 Clear strategic focus KIJA's exisdng pipeline provides visible opportunides over different Dme frames Con_nue to develop and capitalize on Kota Jababeka Township Short Term Further development of Kendal Industrial Park in partnership with Sembcorp in Central Java Medium Term 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 porholio (power, water, ports, etc.) to support these new townships 24

26 6 Strong financial performance... Revenue breakdown (IDR billion) Gross profit (IDR billion) and Gross profit margin (%) 3,500 1,600 3,140 2,931 3,000 1,400 61% 2,739 2,799 2,500 1,272 2,329 1,200 1,208 1,207 1,000 43% 45% 44% 2,000 1,390 42% % 1,500 1,401 1, ,171 1,252 1,243 1,000 1,161 1, ,592 1,723 1,349 1, M M17 Recurring revenue Real estate & other revenue Gross profit Gross profit margin 70% 60% 50% 40% 30% 20% 10% 0% EBITDA (IDR billion) and EBITDA margin (%) 1,400 1,200 53% 1,000 40% 37% 37% % % 1,130 1,167 1,019 1, M17 EBITDA EBITDA margin 60% 50% 40% 30% 20% 10% 0% Net income (IDR billion) (1) 101 (1) 399 (1) M17 (1) (2) (1) Notes: 1 Approximate unrealized foreign exchange loss (non cash) for FY12: IDR 62 billion, FY13: IDR 420 billion, FY14: IDR 65 billion, FY15: IDR 156 billion and 9M17 IDR 26 billion 2 FY16 ncludes unrealized foreign exchange gains (non cash) of approximately IDR 135 billion 25

27 6 Robust balance sheet posidon Assets and cash (IDR billion) 12,000 9,942 10,208 10,000 8,914 7,660 7,911 8,000 6,836 6,000 4,000 2, M17 Cash and cash equivalents Total assets EBITDA/Interest expense (x) Debt, Equity (IDR billion) and Debt/Equity (x) 6,000 5,638 5,851 4,978 5,000 4,662 4,186 3, ,810 4,000 3,510 3, , ,572 2,705 2,046 2,000 1, M17 Total debt Total equity Debt/Equity Net debt/ltm EBITDA (x) M M17 Notes: 1 Includes capitalized interest + Hedging Fees 26

28 7 Experienced management team Average of more than 20 years of industrial township development experience Board of Commissioners Setyono Djuandi Darmono President Commissioner Bacelius Ruru Vice President Commissioner Hadi Rahardja Commissioner Gan Michael Commissioner Ketut Budi Wijaya Commissioner / (Founder) Independent Commissioner (Founder) Independent Commissioner Board of Directors Budianto Liman Hyanto Wihadhi Sutedja Sidarta Darmono Tjahjadi Rahardja SeDawan Mardjuki President Director Director Director Director Director 27

29 8 Favourable macro and sector fundamentals Strong real GDP growth outlook (%) E 2018F 2019F 2020F ConDnued growth in direct investments both FDI and domesdc (IDR trn) Source: Sta_s_cs Indonesia, EIU February 2018 Source: BKPM FDI Domes_c Direct Investment Total Sizeable domesdc market size world's 4 th largest populadon Greater Jakarta average industrial land prices (USD/sqm) 1,600 1,400 1,200 1,372 1, , China India US Indonesia Brazil Pakistan Nigeria Bangladesh Russian Mexico Japan Ethiopia Philippines Vietnam Egypt Germany Congo Iran Turkey Thailand UK France Italy Tanzania South Africa Myanmar Korea Kenya Colombia Spain Q Source: EIU Popula_on Data as of February 2018 Source: Colliers Indonesia Interna_onal research Q

30 8 Favourable macro and sector fundamentals Government Budget on Infrastructure Spend in Indonesia (IDRtrn) Government inidadves to sdmulate industry Budget Actual FDI in Infrastructure-related Sectors in Indonesia (USDbn) 12,000 10,000 9,320 9,637 10,298 11,291 10,742 8,818 9,015 8,000 6,000 5,819 1 Upgrading of Infrastructure 2 Capital spending on ailing infrastructure network gained trac_on from late 2015 Upgrades to ports, roads, toll roads and power plants Jakarta airport railway Trans-Sumatera toll road New Jakarta container terminal (New Priok) New Terminal 3 at Jakarta airport Equity injec_ons into infrastructure-related State Owned Enterprises ( SOEs ) Further streamlining and improvements to the land acquisi_on process cri_cal for infrastructure development and a bigger budget allocated to the new land acquisi_on agency Improvement in investment climate via cuzng red tape and easing bureaucracy Restric_ons on foreign par_cipa_on in several logis_cs related sectors have been loosened 4,000 2, DeregulaDon of Investment and Tax IncenDves Licenses have already been granted to operate bonded logis_cs centre Secured funding from interna_onal development agencies Mining Electricity, Gas & Water Supply Transport, Storage & Communica_on Construc_on Introduced many regulatory reforms to create a more conducive environment for private sector par_cipa_on in infrastructure Source: PWC: Indonesian Infrastructure Report ; Ministry of Finance; BKPM 29

31 Thank You 30