Right Place, Right Time, Right Company PT Lippo Karawaci Tbk Indonesia s Largest and Most Integrated Property Group Leaders in Integrated Developments, Hospitals, Retail Malls, Hotels and Asset Management
DISCLAIMER This presentation has been prepared by PT Lippo Karawaci Tbk ( LPKR ) and is circulated for the purpose of general information only. It is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of LPKR. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this report constitute our judgment as of this date and are subject to change without prior notice. LPKR disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this presentation and neither LPKR nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or otherwise, in this presentation and any inaccuracy herein or omission here from which might otherwise arise. Forward-Looking Statements The information communicated in this presentation contains certain statements that are or may be forward looking. These statements typically contain words such as "will", "expects" and "anticipates" and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this presentation. Factors that could cause actual results to differ include, but are not limited to, economic, social and political conditions in Indonesia; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulations and compliance costs; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for LPKR s developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits and training, governmental and public policy changes; LPKR s ability to be and remain competitive; LPKR s financial condition, business strategy as well as the plans and objectives of LPKR s management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although LPKR believes that the expectations of its management as reflected by such forward-looking statements are reasonable based on information currently available to us, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as of the date hereof, and LPKR undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
CONTENTS LIPPO GROUP 01 CORPORATE STRUCTURE 02 LARGEST & MOST INTEGRATED PROPERTY COMPANY 03 FOUR BUSINESS DIVISIONS 04 MOST RECENT FINANCIAL RESULTS 05-06 DIVERSIFIED LANDBANK & PROJECTS 07-08 MOST INTEGRATED BUSINESS MODEL IN INDONESIAN PROPERTY SECTOR 09 HIGHLY EXPERIENCED & PROFESSIONAL MANAGEMENT 10 GROWTH STRATEGIES 11-12 OUR PORTFOLIO 13-29 FINANCIAL PERFORMANCE 30-35 APPENDICES 36-54
LIPPO GROUP An Indonesian Business Leader Growing in Stewardship Impacting Lives REGIONAL PRESENCE IN CHINA, HONG KONG, SINGAPORE, PHILIPPINES, KOREA, MACAU INDONESIA RETAIL PROPERTY PT Lippo Karawaci Tbk HOSPITALS PT Siloam International Hospitals Tbk PT Matahari Putra Prima Tbk PT Matahari Department Store Tbk MEDIA PT First Media Tbk PT Berita Satu Holdings TECHNOLOGY PT Multipolar Technology Tbk EDUCATION Pelita Harapan Foundation 01
CORPORATE STRUCTURE LIPPO RELATED COMPANIES 25.66% PUBLIC 74.34 % As of 30 June 2014 No. of Outstanding Shares : 23,077,689,619 Code : LPKR.JK ; LPKR IJ DEVELOPMENT REVENUE RECURRING REVENUE RESIDENTIAL & URBAN DEVELOPMENT HOSPITALS COMMERCIAL ASSET MANAGEMENT Lippo Village Lippo Cikarang Tanjung Bunga San Diego Hills Memorial Park Kemang Village The St. Moritz City of Tomorrow Park View Apartments The Nine Residence Holland Village St Moritz Panakukang Embarcadero Siloam Hospitals Retail Malls Aryaduta Hotels Town Management Services, Leisure and Restaurants REIT, Mall & Hotel Management 02
LARGEST & MOST INTEGRATED PROPERTY COMPANY Largest listed property Company by Revenue and Total Assets. Revenue and Net Income for 6M 2014: USD348 million and USD57 million, respectively. Fastest growing Indonesian real estate group (market cap grew by more than 9x to USD 1.9 billion 1 since the merger of eight property related companies in 2004). Market leader in townships & residential property, hospitals, and retail malls. Integrated business model with ability to recycle capital, and largest diversified landbank throughout Indonesia. Only Property Company rated by three rating agencies (BB- by Standard & Poor s 2, BB- by Fitch 3, Ba3 by Moody s 4 ) Included in MSCI Global Standard Indices & major Indonesia Stock Exchange Indices: LQ45,IDX30, Jakarta Islamic Index, Bisnis-27, Kompas-100, ISSI, MNC-36, and Investor-33. Strong International Partners and Shareholders. Multi Award winning Developer. 1 As of June 30 2014 2 Affirmed on April 2, 2014 3 Affirmed on April 2, 2014 4 Affirmed on May 29, 2014 03
FOUR BUSINESS DIVISIONS RESIDENTIAL AND URBAN DEVELOPMENT HOSPITALS COMMERCIAL ASSET MANAGEMENT Development rights: 8,048 ha Land already acquired: 4,847 ha Landbank Inventory: 1,300 ha 17 hospitals with more than 3,900 beds capacity under the Siloam Hospitals network. 23 hospitals in the pipeline (Target: 40 hospitals and 10,000 beds capacity by 2017) National and International (JCI) accreditation Malls: Own and/or manage 36 malls (GFA of 3 million sqm) 14 malls in the pipeline Hotels: Own and/or manage 8 hotels with 1,663 rooms 10 upscale hotels and 40 midscale hotels in the pipeline by 2020 Manages 2 public listed REITs in SGX : First REIT & LMIRT USD2.2 billion Assets Under Management Town Management 04
REVENUE & EBITDA CONTRIBUTION REVENUE 6M 14: Rp4.109 Trillion EBITDA 6M 14: Rp1.203 Trillion 38% 17% 47% 13% 8% 7% 63% 7% Residential & Urban Development Hospitals Commercial Asset Management Source : Company as of 6M 2014 05
INCOME STATEMENTS : 6M 2014 AND 6M 2013 2,500 2,000 1,500 1,000 500 - Rp bn 1,918 1,320 - Residential & Urban Development REVENUE 6M 14: RP 4.109 TRILLION REVENUE 6M 13: RP 3.067 TRILLION 1,568 1,201 299 267 324 279 - Healthcare - Commercial - Asset Management 34% EBITDA 6M 14: RP 1.203 TRILLION EBITDA 6M 13: RP 903 BILLION 33% Rp bn 900 800 700 600 500 400 300 200 100-765 553 - Residential & Urban Development 208 133 152 135 78 82 - Healthcare - Commercial - Asset Management Source : Company as of 6M 2014 NPAT 6M 14: RP 673 BILLION NPAT 6M 13: RP 546 BILLION 23% 06
DIVERSIFIED LANDBANK AND PROJECTS INDONESIA Binjai Supermall Grand Palladium Medan Sun Plaza Plaza Medan Fair Lippo Plaza Medan Aryaduta Hotel Medan Aryaduta Hotel Manado Siloam Hospitals Manado Aryaduta Hotel Pekanbaru Siloam Hospitals Balikpapan Siloam Hospitals Jambi Palembang Square PSx Mall Siloam Hospitals Palembang Aryaduta Hotel Palembang Palembang Icon Mall Bandung Indah Plaza Istana Plaza Residential & Urban Development Hospitals Retail Malls Hotels City of Tomorrow, Surabaya Siloam Hospitals Surabaya KALIMANTAN Projects in Greater Jakarta Siloam in Greater Jakarta (7) Malang Town Square JAVA Siloam Hospitals Purwakarta SULAWESI St Moritz Panakukang Tanjung Bunga Township Siloam Hospitals Makassar GTC Makassar Siloam Hospitals Nusa Dua, Kuta, Sunset (Bali) Lippo Plaza Sunset Lippo Mall Kuta MALUKU PAPUA 07
DIVERSIFIED LANDBANK AND PROJECTS PROJECTS IN GREATER JAKARTA Jakarta Population : 12 million 1 Greater Jakarta Population : 30 million 1 JAVA SEA Pluit Village N International Airport Soekarno Hatta Metropolis Town Square Lippo Village Township Millenium Village (LV new CBD) Siloam Hospitals Lippo Village Siloam General Hospitals Aryaduta Hotel & Country Club WTC Matahari Royal Serpong Village BANTEN PROVINCE Residential & Urban Development Hospitals Retail Malls Hotels Offices TOLL ROAD 1 Indonesia Central Statistic Bureau WEST JAKARTA St. Moritz Lippo Mall Puri PX Pavilion Siloam Hospitals Kebon Jeruk Embarcadero Bintaro SOUTH JAKARTA Kemang Village Lippo Mall Kemang Siloam Hospitals TB Simatupang Siloam Hospitals Cinere Pejaten Village Depok Town Square Park View Apartments Gajah Mada Plaza Holland Village CENTER OF JAKARTA Aryaduta Hotel Jakarta Lippo Thamrin MRCCC Aryaduta Hotel Semanggi The Plaza Semanggi The Nine Residence EAST JAKARTA NORTH JAKARTA Kramat Jati Indah Plaza Tamini Square Cibubur Junction Bellanova Country Mall Eka Lokasari Mall Puncak Resort Grand Mall Bekasi Blu Plaza Bekasi San Diego Hills Memorial Park Lippo Cikarang Township Orange County (LC new CBD) Siloam Hospitals Lippo Cikarang Lippo Cikarang Mall WEST JAVA PROVINCE 08
MOST INTEGRATED BUSINESS MODEL IN INDONESIAN PROPERTY SECTOR DEVELOPERS Majority of Indonesian Developers Developer, Operator and REIT & Portfolio Managers PROPERTY OPERATIONS Majority of Indonesian Developers REITs Proven Experience & Track Record Prudent & Sustainable Financial Management Capitalizing on Group Synergies Sophisticated Marketing Existing Landbank & Proactive Land Acquisition Integrated Projects Across Property Value Chain Projects: Residential Industrial Commercial Service: Healthcare Hospitality Leased Mall Management Development Income Buyers: Individual Corporate Recurring Income Middle income and upper market segment THIRD PARTIES DEVELOPMENT AND OPERATING CAPABILITIES ACROSS THE SPECTRUM OF REAL ESTATE PRODUCTS 09
HIGHLY EXPERIENCED & PROFESSIONAL MANAGEMENT BOARD OF COMMISSIONERS: Theo L. Sambuaga Chairman Surjadi Soedirja Vice Chairman Agum Gumelar Tanri Abeng Farid Harianto H. Sutiyoso Muladi Viven Sitiabudi Benny Haryanto BOARD OF DIRECTORS: Ketut Budi Wijaya President Director Tjokro Libianto Djoko Harjono Stephen Choo Jenny Kuistono Rahmawaty Ninik Nathan SENIOR EXECUTIVES: Romeo Lledo MC Loh Johannes Janny Ivan Budiono 10
LIPPO KARAWACI : ON A TRANSFORMATIONAL JOURNEY 2010-2015 Transforming USD3 billion to USD8 billion in 5 years. Performance and promotion to double Lippo Karawaci s Market Cap in short term. Build significant Leadership Premium. Globalize Lippo Karawaci Investor Base. Strengthen Residential / Township Group. Realize USD3 billion Retail Malls Group. Transformational Hospital Group scale-up to USD3.5 billion in 5 years. Build a USD7.5 billion Asset Management / REIT Group in 5 years. More focus on Asset-Turn Deals. Realize Maximum Value for Hotel Group. Build Strong Recurring Extraordinary Earnings. 11
GROWTH STRATEGIES RESIDENTIAL AND URBAN DEVELOPMENT HOSPITALS COMMERCIAL ASSET MANAGEMENT Continue to complete and deliver on project pipeline with due consideration of recent regulations in a more realistic launch schedule Continue to diversify into other types of property developments, i.e. office. Enhance value of our landbank through various infrastructural and commercial initiatives. Ramp up our marketing sales to capitalise on current opportunities and our industry leading position. Wider price range to capture broad market coverage Deliver as promised on our hospital expansion program whilst further enhancing our position as the leading hospital and healthcare group in Indonesia. Continue our operational and cost efficiency programs to shorten stabilisation periods of new hospitals. Set the benchmark for innovative medical packages that meet the needs of our growing middle class. Create new medical package to meet the needs of broad market segment for world class healthcare RETAIL MALLS Execute on planned pipeline developments Expedite the development of pipeline projects Fast track asset enhancement projects in existing malls. Enhance process and culture to create Indonesia s premier malls operator. HOTELS Increase market share and profitability of our existing hotel portfolio Entry into the middle market through launch of three star hotel chain Deliver a significant growth in scale in our REITs through our asset light strategy. Continue to grow our fee income contribution which strengthen our recurring revenue base. 12
RESIDENTIAL & URBAN DEVELOPMENT LIPPO VILLAGE AT KARAWACI, JAKARTA WEST LIPPO CIKARANG, JAKARTA EAST Development Rights 3,066 ha Residential Houses > 9,757 Condos > 1,120 Shophouses > 1,160 Land already acquired 1,184 ha Population > 58,372 112 km roads built, 56,850 trees planted, 21% green space Landbank inventory 286 ha Jobs 48,600 Residential Industrial Development Rights 887 ha 2,364 ha Residential Houses > 12,500 Condos > 184 Shophouses > 892 No. of Factories Industrial > 800 Land already acquired 981 ha 1,775 ha Population > 45,000 180 km roads built, and 91,451 trees planted, Global Names : Toyota Tsusho, Hankook, Danone, Epson, Sanyo, KIA Motors Landbank inventory 170 ha 300 ha Workers 350,000 13
RESIDENTIAL & URBAN DEVELOPMENT TANJUNG BUNGA, MAKASSAR, SOUTH SULAWESI SAN DIEGO HILLS MEMORIAL PARK AND FUNERAL HOME Development Rights 1,500 ha Residential Houses > 6,136 Shophouses > 156 Land already acquired 644 ha Population > 9,878 Landbank inventory 307 ha Jobs 11,495 Master Plan 500 ha Plot Sold 33,500 Land already acquired 125 ha Landbank inventory 95 ha (+ 14 ha family center & lake} 27 km roads built, and 6,270 trees planted, 14
TOTAL LAND AREA : 15 Ha 15
A LANDMARK PROJECT SOUTH JAKARTA THE COSMOPOLITAN THE TIFFANY THE BLOOMINGTON THE INTERCON THE INFINITY SOLD (AS OF 30 JUNE 2014) THE RITZ 98% THE COSMOPOLITAN 97% THE EMPIRE 97% THE RITZ Rp 438 bio 100% completion Rp 388 bio 100% completion Rp 338 bio 100% completion THE EMPIRE THE TIFFANY THE INFINITY THE INTERCON JW MARRIOTT HOTEL 100% 100% 100% International School Rp 599 bio 100% completion Rp 386 bio 100% completion Rp 354 bio 95% completion LIPPO MALL KEMANG Construction Progress as at 31 Dec 2013 THE BLOOMINGTON 91% Rp 915 bio 45% completion PAYMENT PROFILE Cash 28% Mortgage 53% 12-36 Monthly Installment 19% 16
THE NEW CROWN JEWEL CBD WEST JAKARTA
TOTAL LAND AREA : 11.4 Ha NEW ROYAL SUITE (197 units) ROYAL SUITE (231 units) AMBASSADOR SUITE (144 units) PRESIDENTIAL SUITE (140 units) NEW PRESIDENTIAL SUITE (159 units) SOLD (AS OF 30 JUNE 2014) PRESIDENTIAL SUITES 96% AMBASSADOR SUITES 92% ROYAL SUITES 96% Rp 420 bio Rp 297 bio Rp 299 bio New AMBASSADOR SUITE (171 units) 100% completion NEW PRESIDENTIAL SUITES 100% completion NEW AMBASSADOR SUITES 100% completion NEW ROYAL SUITES 82% 86% 98% Rp 530 bio Rp 462 bio Rp 355 bio LIPPO MALL PURI 57% completion 55% completion 95% completion PAYMENT PROFILE Cash 27 % Construction Progress as at 31 Dec 2013 Mortgage 50 % 12-36 Monthly Installment 23 % 18
PROJECTS LAUNCHED IN 2014 ST. MORITZ PANAKUKANG EMBARCADERO BINTARO OFFICE TOWER AT HOLLAND VILLAGE Type : Apartments Location : CBD Makassar Launched : 18 Jan 2014 Land area : 2.7 Ha Total no of unit : 300 ASP : Rp 18 mn/sqm Pre-sold : Rp 213 Bn [75%] Type : Apartments Location : South Jakarta Launched : 8 Mar 2014 Land area : 2.4 Ha Total no of unit : 400 ASP : Rp 19 mn/sqm Pre-sold : Rp 324 Bn (83%) Type : Office Tower Location : CentralJakarta Launched : 9 May 2014 Total SGA : 21,360 sqm Number of floor : 18 ASP : Rp 22 mn /sqm Pre-sold : Rp 362 Bn [78%] Payment Profile on launched date Payment Profile on launched date Payment Profile on launched date Cash 23% Mortgage 1% Installment 76% Cash 13% Mortgage 18% Installment 69% Cash 5% Mortgage 80% Installment 15% 19
PIPELINE IN 2014 HILLCREST HOUSE LIPPO VILLAGE HOLLAND VILLAGE KEMANG ANTASARI ORANGE COUNTY LIPPO CIKARANG LIPPO THAMRIN Type : Apartments Type : Apartments Location : Lippo Village Location : Central Jakarta SGA : 58,338 sqm SGA : 21,369 sqm Tentative Launch Date : Aug Sep 2014 Tentative Launch Date : Aug-Sep 2014 Type : Apartments Location : South Jakarta SGA : 21,000 sqm Tentative Launch Date : Oct Nov 2014 Type : Apartments Type : Office Tower Location : Lippo Cikarang Location : CentralJakarta SGA : 58,000 sqm GFA : 5,500 sqm Tentative Launch Date : Nov Dec 2014 Tentative Launch Date : Dec 2014 20
PRE-SOLD PROJECTS UNDER CONSTRUCTION OFFICE TOWER AT THE ST. MORITZ THE NINE RESIDENCE PARK VIEW APARTMENTS HOLLAND VILLAGE LIPPO THAMRIN Type : Office Tower Location : West Jakarta GFA : 20,280 sqm Number of floor : 13 ASP : Rp 20 mn/sqm Pre-sold : Rp 295 Bn [90%] Type : Apartments Location : South Jakarta Launched : 4 August 2012 Land area : 0.9 Ha Number of unit : 352 ASP : Rp 18 mn/sqm Pre-sold : Rp 251 Bn [100%] Type : Apartments [2 towers] Location : Depok Launched : 2011 Number of units : 839 ASP : Rp 9 mn/sqm Pre-sold : Rp 247 Bn [100%] Type : Apartments Location : Central Jakarta Launched : 18 May 2013 Land area : 4 Ha Number of units : 240 ASP : Rp 20 mn/sqm Pre-sold : Rp 510 Bn [100%] Type : Office Tower Location : CentralJakarta Launched : 24-25 Oct 2013 GFA : 13,055 sqm Number of floor : 13 ASP : Rp 47.5m /sqm Pre-sold : Rp 619 Bn [100%] 21
PREMIER HOSPITAL GROUP SILOAM HOSPITALS NETWORK Unrivalled scale across Indonesia 25 Sumatra Population : 50.6 mio Sulawesi Population : 17.4 mio Maluku Population : 2.6 mio JCI Standard Kalimantan Population : 13.8 mio Papua Population : 3.6 mio Java Population : 136.6 mio Nusa Tenggara Population : 9.2 mio Bali Population : 3.9 mio Operational Hospitals (17) Future Developments (29) Greater Jakarta Population : 28 mio Jakarta Population : 10 mio 22
PREMIER HOSPITAL GROUP MATURE AND DEVELOPING HOSPITALS 26 SILOAM HOSPITALS LIPPO VILLAGE TANGERANG (West of Jakarta) 308 Bed Capacity 234 GP and Specialists 455 Nurses Centre of Excellence : Neurosience & Heart Centre SILOAM HOSPITALS KEBON JERUK WEST JAKARTA 279 Bed Capacity 198 GP and Specialists 342 Nurses Centre of Excellence : Urology & Orthopaedic SILOAM HOSPITALS SURABAYA EAST JAVA 162 Bed Capacity 144 GP and Specialists 265 Nurses Centre of Excellence : Fertility Centre SILOAM HOSPITALS CIKARANG BEKASI (East of Jakarta) 118 Bed Capacity 91 GP and Specialists 161 Nurses Centre of Excellence : Occupational Health JCIA MRCCC SILOAM SEMANGGI SOUTH JAKARTA 331 Bed Capacity 172 GP and Specialists 220 Nurses Centre of Excellence : Cancer Centre SILOAM HOSPITALS JAMBI EAST SUMATERA 100 Bed Capacity 65 GP and Specialists 127 Nurses Centre of Excellence : Emergency & Trauma 83% Ownership SILOAM HOSPITALS BALIKPAPAN EAST KALIMANTAN 228 Bed Capacity 92 GP and Specialists 180 Nurses Centre of Excellence : Emergency & Trauma and Orthopedics 79.45% Ownership 23
PREMIER HOSPITAL GROUP NEW HOSPITALS IN 2012 SILOAM GENERAL HOSPITAL (RSUS) TANGERANG (West of Jakarta) 664 Bed Capacity 49 GP and Specialists 214 Nurses SILOAM HOSPITALS CINERE DEPOK (South of Jakarta) 37 Bed Capacity 19 GP and Specialists 51 Nurses Centre of Excellence: Cardiology 27 SILOAM HOSPITALS MANADO NORTH SULAWESI 230 Bed Capacity 98 GP and Specialists 126 Nurses Centre of Excellence : Emergency & Trauma 80% Ownership SILOAM HOSPITALS MAKASSAR SOUTH SULAWESI 360 Bed Capacity 97 GP and Specialists 247 Nurses Centre of Excellence : Cardiology and Emergency & Trauma SILOAM HOSPITALS SRIWIJAYA PALEMBANG, SOUTH SUMATERA 347 Bed Capacity 119 GP and Specialists 161 Nurses Centre of Excellence : Emergency & Trauma 70.39% Ownership 24
PREMIER HOSPITAL GROUP NEW HOSPITALS IN 2013 SILOAM HOSPITALS BALI BALI 281 Bed Capacity 97 GP and Specialists 179 Nurses Centre of Excellence : Emergency, medical tourism, orthopaedics & cardiology BIMC Kuta BALI 28 19 Bed Capacity 51 GP and Specialists 65 Nurses Centre of Excellence : Emergency & Trauma 80% Ownership SILOAM HOSPITALS TB SIMATUPANG SOUTH JAKARTA 269 Bed Capacity 110 GP and Specialists 136 Nurses Centre of Excellence : Emergency and Trauma cardiology, oncology & neuroscience BIMC Nusa Dua BALI 31 Bed Capacity 57 GP and Specialists 74 Nurses Centre of Excellence : Emergency & Cosmetic Surgery 80% Ownership NEW HOSPITALS IN 2014 SILOAM HOSPITALS PURWAKARTA WEST JAVA 203 Bed Capacity 34 GP and Specialists 105 Nurses Centre of Excellence : Emergency & Trauma 25
PREMIER HOSPITAL GROUP HOSPITALS UNDER CONSTRUCTION 29 SILOAM HOSPITALS MEDAN NORTH SUMATERA SILOAM HOSPITALS KUPANG EAST NUSA TENGGARA 26
DOMINANT POSITION IN RETAIL DEVELOPMENT & PROPERTY MANAGEMENT MANAGES 36 MALLS THROUGHOUT INDONESIA 3 million sqm GFA, and 1 million sqm NLA Over 2,300 retailer brands in 4,200 units As of Jun 30, 2014 : Overall average occupancy 82% and 95% in LMIRT properties PX PAVILLION LIPPO MALL KUTA LIPPO MALL KEMANG NEW MALLS IN THE PIPELINE : LIPPO MALL PURI LIPPO MALL JOGYA LIPPO PLAZA MAMPANG 27
MANAGES 8 HOTELS THROUGHOUT INDONESIA Pipeline: 10 upscale hotels and 40 midscale hotels by 2020 As of Jun 30, 2014 : Overall average occupancy 66% HOTEL ARYADUTA LIPPO VILAGE (192 rooms) HOTEL ARYADUTA JAKARTA (302 rooms) HOTEL ARYADUTA MEDAN (197 rooms) HOTEL ARYADUTA PEKANBARU (158 rooms) HOTEL ARYADUTA MANADO (146 rooms) HOTELS UNDER ARYADUTA MANAGEMENT : HOTEL ARYADUTA SEMANGGI (274 rooms) HOTEL ARYADUTA MAKASSAR (224 rooms) HOTEL ARYADUTA PALEMBANG (170 rooms) 28
ASSET MANAGEMENT UNIQUE FOR AN INDONESIAN PROPERTY COMPANY 100% 100% 100% 100% BOWSPRIT CAPITAL CORPORATION LTD 33.57% LMIR TRUST MANAGEMENT LTD 27.76% PT LIPPO MALLS INDONESIA PT ARYADUTA INTERNATIONAL MANAGEMENT REIT MANAGER Code : FIRT REIT MANAGER Code : LMRT MALL MANAGEMENT SERVICES HOTEL OPERATOR Management Fee Management Fee Management Fee Fees -Base fee : 0.4% p.a. of the value of the Deposited Property. -Performance fee : 5.0% p.a. of the Net Property Income. - Investment & Divestment fee. -Base fee : 0.25% p.a. of the value of the Deposited Property. -Performance fee : 4.0% p.a. of the Net Property Income. - Investment & Divestment fee. - 2% p.a. of the gross revenue of the retail malls. - 2% p.a. of the Net Property Income of the retail malls. - 0.5% p.a. of the retail malls in lieu of leasing commission. Fees consists among others Management Fee and Incentive Fee which computed based on certain percentage from Revenue and GOP, respectively. As of 30 June 2014 IN SINGAPORE IN INDONESIA 29
FINANCIAL PERFORMANCE
STRONG FINANCIAL PERFORMANCE TOTAL REVENUE (RP TRILLION) EBITDA (RP BILLION) NET PROFIT AFTER TAX (RP BILLION) 11.55 2) 3,872 2) 2,806 2) 3.00 1,400 1,250 6.16 1) 0.88 1,686 1) 3.13 4.19 5.28 6.66 8.55 854 1,083 365 1,321 1,801 2,472 525 1,060 1) 358 708 702 1,228 1,556 2010 2011 2012 2013 2014P 2010 2011 2012 2013 2014P 2010 2011 2012 2013 2014P 1) FY 2012 includes Revenue, EBITDA, and Extraordinary Net Income After Tax amounting to Rp879M, Rp 365 M dan Rp 358M respectively 2) Projection FY 2014 includes Revenue, EBITDA and Extraordinary Net Income After Tax amounting to Rp 3T, Rp 1.4T dan 1.25T respectively Source : Company as of 6M 2014 31
BALANCE SHEET AS OF 31 DECEMBER (Unless otherwise stated) Rp Billion 30 JUN 2014 2013 2012 2011 2010 TOTAL ASSET 34.606 31.300 24.869 18.259 16.155 TOTAL LIABILITIES 18.773 17.123 13.399 8.850 7.976 TOTAL EQUITY 14.113 12.801 10.656 8.834 7.710 TOTAL DEBT 9.427 7.808 6.014 3.753 3.376 CASH AND CASH EQUIVALENTS 2.704 1.855 3.337 2.175 3.660 D/E RATIO 0.7 0.6 0.6 0.4 0.4 NET GEARING RATIO 0.5 0.5 0.3 0.2 - Source : Company as of 6M 2014 32
DEBT MATURITY PROFILE* USD million 450 400 Coupon rate 7% pa Coupon rate 6.125% pa 403.3 Coupon rate 7% pa 350 130.00 130.0 300 252.8 250 200 150 100 50 0 250 273.31 250.00 150.00 0.4 1.4 2.8 2013 2014 2016 2019 2020 2022 273.3 Bonds Bank Central Asia Bank Pembangunan Daerah Kalimantan Timur Source : Company as of 6M 2014 * Bank Loans (except Bonds) are denominated in IDR 33
ATTRACTIVE ASSET VALUE Ownership (%) Land Area (ha) Assets Value (Rp bn) URBAN DEVELOPMENT: Lippo Village 100 414 25,377 Lippo Cikarang 54.4 661 13,274 Tanjung Bunga 50.3 296 4,492 San Diego Hills 100 100 2,000 Micro Suburbs 100 20 260 SUB TOTAL 1) 45,403 LARGE SCALE INTEGRATED DEVELOPMENT: City of Tomorrow (retail, apart, inv & hotel) 85 5 665 Kemang Village 92 8 1,787 St Moritz 100 11 3,232 Others (land, retail space inv & other devt) 100 2,235 SUB TOTAL 1) 7,919 RETAIL MALLS: 3 Malls 100 1,749 Retail Space Inventory 100 723 SUB TOTAL 2) 2,472 HOSPITALS: ** 9 Hospitals FREIT 14,260 SH Jambi, Balikpapan & Cinere 83; 79.6 & 80 1,910 2 BIMC Bali 80 570 2 Hospitals 1,143 SUB TOTAL 2) 17,883 HOTELS: 2 Hotels FREIT 680 4 Hotels 100 1,673 SUB TOTAL 2) 2,353 REIT Units 3) 5,368 ESTIMATED TOTAL ASSET VALUE 81,398 Add: Cash 3) 2,704 Less: Debt 3) 9,427 Less: Advances from Customers 3) 5,181 ESTIMATED NAV 69,494 1 2 3 Appraised value as of 31 Dec 2013 by: - Rengganis Hamid & Partner (in stategic alliance with CB Richard Ellis) & - Ihot, Dollar & Raymond (an independent member of Baker Tilly International) Business Value : - Hospitals - 11.18% WACC - Malls - 12.96% WACC - Hotels - 13.00% WACC As of 30 Jun 2014 ** SILO Market Cap as of 31 Dec 2013 : Rp 11 tn (+/- USD 1bn) 34
PROPERTY MARKETING SALES Rp BILLION PROJECTS 2011 2012 1H'13 2013 1H'14 Budget 2014 (Rev) URBAN DEVELOPMENT Lippo Village 152 241 73 113 20 600 Lippo Cikarang 1,301 2,061 1,209 1,698 343 1,500 Tanjung Bunga 303 577 225 433 140 200 San Diego Hills 126 185 69 156 82 200 Sub Total 1,882 3,064 1,576 2,400 585 2,500 CONDOMINIUM Kemang Village 495 747 239 310 6 50 The St Moritz (JKT) 568 655 220 187 105 150 Park View 222 17 8 11 - - Nine Residence - 182 70 67 4 - City of Tommorow 1 - - - - - Holland Village - - 478 510 362 650 Lippo Thamrin Office - - - 619-300 St Moritz Makassar - - - - 219 225 Embarcadero Suites - - - - 356 400 New Projects - - - - - 400 Sub Total 1,286 1,601 1,015 1,704 1,052 2,175 RETAIL INVENTORIES 11 18 5 11 3 - Sub total - Property 3,179 4,683 2,596 4,115 1,639 4,675 ASSET SOLD TO THE REITS - 2,077 1,482 1,482-3,200 TOTAL MARKETING SALES 3,179 6,760 4,078 5,597 1,639 7,875 Source : Company as of 6M 2014 35
APPENDICES
INDONESIA: ATTRACTIVE GROWING MARKET Economic Indicators Size of Middle Class (in mn) 2012 2013 2014 Assumption Economic Growth (%) 6.2 5.8 5.3 Inflation Rate (%) 4.3 8.4 6.5 Exchange Rate (Rp/USD) 9,670 12,189 11,700 3-month SBI Rate (%) 5.75 7.50 7.50 Oil Price (USD/bbl) 105 110 105 Lifting (k bbl/day) 930 900 818 Source : Bank of Indonesia, Statistics Indonesia, World Bank Destination of World Investment (2010-2013) based on Capex Source : Indonesia Investment Coordinating Board 37
INDONESIA PROPERTY SECTOR HAS ROOM TO GROW Rapid urbanisation Growing middle class Strong savings and income growth Low mortgage penetration Property as investment Improving regulatory environment Banking innovation Property prices cheapest in the region Highest yields in the region ASIA PACIFIC PROPERTY Capital Value (USD/sqm) Hong Kong Singapore Bangkok 3,282 Manila 2,807 Kuala Lumpur 2,629 Jakarta 2,544 17,709 20,660 HOUSING AFFORDABILITY Country House price per sqm GDP per capita Housing (in USD) (in USD) Affordability (A) (B) C= (A/B) X 12 Indonesia 2,544 3,469 8.80 Phillipine 2,807 2,255 14.93 Malaysia 2,629 8,617 3.66 Thailand 3,282 5,281 7.46 Singapore 17,709 50,714 4.19 Hongkong 20,660 34,393 7.21 China 6,932 5,184 16.05 India 11,604 1,527 91.19 USA 15,284 48,147 3.81 UK 17,575 39,604 5.32 Source : Global Property Guide Rental Yield Manila 7.06% Jakarta 7.05% Bangkok 6.29% Kuala Lumpur 4.87% Hong Kong 3.00% Singapore 2.41% Source : Global Property Guide 38
PROPERTY FOREIGN OWNERSHIP LAND TITLES AVAILABLE : 1. Freehold : may be held by Indonesian citizens only (not even by fully Indonesian- owned companies). 2. Right to Build (renewable leasehold) : may be held by Indonesian citizens and any company established in Indonesia for an initial 30 years. 3. Right to Use (renewable leasehold) : may be held by Indonesian citizens, any company and foreign citizens, for an initial 25 years. OPTIONS FOR FOREIGN OWNERSHIP : 1. Establish a company with approval for full or part foreign ownership (PMA company) to own the property. 2. Purchase the property in your own name under Right to Use title. 3. Through Indonesian nominees, establish a locally owned company. 4. Use an Indonesian professional third party corporate nominee. 5. Private unregistered lease. 6. Establish a person to person arrangement with an Indonesian private individual who will personally own the property. 39
OVERVIEW OF JAKARTA S CONDOMINIUM MARKET Source : Q2 2014 Market Review for Jakarta Jones Lang LaSalle Research 40
OVERVIEW OF JAKARTA S RETAIL MARKET Source : Q2 2014 Market Review for Jakarta Jones Lang LaSalle Research 41
OVERVIEW OF JAKARTA S OFFICE MARKET - CBD AREA Source : Q2 2014 Market Review for Jakarta Jones Lang LaSalle Research 42
OVERVIEW OF JAKARTA S OFFICE MARKET non CBD AREA Source : Q2 2014 Market Review for Jakarta Jones Lang LaSalle Research 43
Indonesia - Severely Underserved Healthcare Market Beds and Doctors Beds /1,000 population 3.50 3.00 238,373 beds v. Global: Shortage of 229,491 beds (1) v. OECD: Shortage of 977,189 beds (1) Global Average = 3.0 OECD Average = 4.93 2.84 2.84 2.95 Doctors /1,000 population 3.00 2.50 70,655 doctors v. Global: Shortage of 267,000 doctors (1) v. OECD: Shortage of 718,086 doctors (1) OECD Average = 3.14 2.31 2.79 2.50 2.00 2.01 2.16 2.00 1.77 Lack of Beds 1.50 1.00 0.97 1.02 1.63 and Qualified Doctors 1.50 1.00 Global Average = 1.4 0.74 1.26 1.48 0.50 0.50 0.30 0.31 0.00 (2) 0.00 (2) Indo India MY TH SG UK US China TH Indo India MY China SG US UK Indonesia s bed to population ratio way below global average Ample opportunity for private healthcare operators to fill the supply gap Doctor to population ratio also way below global average Ability to attract and retain doctors and specialists is a critical success factor for hospitals 44
INDONESIA HEALTHCARE LANDSCAPE Population Growth Primary Care Accessibility Now = 240 Million 2040 = 360 Million Now = 8,300 2040 = 12,000 Universal Coverage Health Spend 58% Coverage 100% Coverage USD 20 Bn USD 640 Bn Now= 140 Million 2017 = 264 Million Now = 2.5% of GDP (USD 800 Bn) 2040 = 8% of GDP (USD 8Tr) Changing Disease Pattern Morbidity Per Capita Spend 45% 55% 35% 65% 1 st 10 Years USD 82 USD 1,780 60% Succeeding 20 Years 40% Now Infection Life-Style 2017 Now 2040 45
MARKET DRIVERS & RESTRAINTS IN INDONESIA S HEALTHCARE SECTOR MARKET DRIVERS A large population base with a booming economy, emerging middle class and rising affluent Longer life expectancy and a population pyramid increasing towards the older population The epidemiological transition has presented Indonesia s healthcare sector with a double burden Universal health insurance coverage would give more people access to healthcare services 2010 2015 Shortage of healthcare professionals Quality of healthcare professional education Lost of domestic spending in Indonesia due to high level of outbound medical tourism 2010 2015 MARKET RESTRAINTS 2012 KPMG Services Pte. Ltd (Registration No. 200003956 G), a Singapore incorporated company & a member firm of the KPMG network of indpendent member firms affiliated with KPMG international cooperative ( KPMG International ), a Swiss entity. All rights reserved. 46
HOSPITALS IN INDONESIA YEAR 2008-2014 No OWNER 31 Dec 08 31 Dec 09 31 Dec 10 31 Dec 11 31 Dec 12 31 Dec 13 30 Jun 14 1 MOH 31 31 31 32 32 33 34 2 PROVINCE GOVERNMENT 3 MUNICIPAL GOVERNMENT 82 84 85 85 89 96 98 54 59 63 86 88 92 92 4 DISTRICT GOVERNMENT 341 378 403 411 444 455 459 5 ARMY / POLICE 112 125 131 134 155 159 170 6 OTHER MINISTRIES / PUBLIC COMPANIES 78 78 79 80 79 79 79 7 PRIVATE 673 768 840 893 1,179 1,314 1,397 TOTAL 1,371 1,523 1,632 1,721 2,066 2,228 2,329 Source : Ministry of Health 47
COUNTRIES HEALTH PROFILE Indonesia Vietnam Malaysia Singapore South Korea India China Australia USA UK Hospital beds/ 10,000 9 20 19 20 103 7 38 39 29 29 Physician/10,000 2 12 12 19 21 7 15 33 25 28 Nurse & Midwife / 10,000 14 11 33 64 50 17 15 107 98 88 Life expectancy at birth (years) 71 72 74 83 81 66 75 83 79 81 IMR per 10,000 live birth 260 190 70 20 30 440 120 40 60 40 MMR per 10,000 live birth 19 5 3 1 3 19 3 1 3 1 % Government Expenditure 38 45 55 33 55 31 56 68 48 83 % Private Expenditure 62 55 45 67 45 70 44 32 52 17 Healthcare Spend as % of GDP 3 7 4 4 7 4 5 9 18 9 Per capita total expenditure on healthcare (USD) 132 227 619 2,556 2,198 146 423 3,890 8,467 3,364 Source : WHO 2014 48
LIPPO KARAWACI S MILESTONES Corporate Actions June Initial Public Offering of 30.8 mn shares February 1 st Rights Issue of 607.8 mn shares at Rp 500/share, issued & listed on the JSX & SSX August Stock Split 1 for 2 March USD 250 mn bonds issuance, at the rate of 8.875% p.a. issue price 100%, due 2011 November LMIRT was listed in SGX, sponsored by the Company November Total 1,055 mn warrants are fully exercised, generating total cash of Rp 923 bn May USD 270 mn bonds issuance, at the rate of 9% p.a. Issue price 100%, due 2015 May Non Pre-emptive Rights Issuance of 1.45 bn new shares at Rp 660/share, March USD 125 mn bonds issuance, at the rate of 9% p.a. offered at 108%, due 2015 October USD 100 mn bonds issuance, at the rate of 7% p.a. offered at 105.25%, due 2019 May USD 150 mn bonds issuance, at the rate of 7% p.a. offered at 99.32%, due 2019 April USD150 mnbonds issuance, at the rate of 7% p.a. offered at par due 2022 March LPKR placed 82.5 mn SILO shares or 7.1% of total shares outstanding for total proceed of Rp 858bn 1990 1993 1996 1998 2005 2006 2007 2010 2011 2012 2013 2014 January 2 nd Rights Issue of 881.9 mn new shares at Rp 1,050/share December The listing of First REIT on the SGX, offering 271.4 mn units at price of SGD 0.71/unit December Stock Split 1 for 2.5 December 3 rd Rights Issue of 4.32 bn new shares at Rp 550/share, November USD273.3 mn Debt Exchange at the rate of 6.125% p.a. due 2020 January USD 130 mn bonds issuance, at the rate of 6.125% p.a. offered at 104.4%, due 2020 September SILO successfully listed in IDX at Rp 9000/share, valuing Siloam at USD 1 billion 49
LIPPO KARAWACI S MILESTONES Corporate Developments July August March October Established under the name PT Tunggal Reksakencana January Started Lippo Village Township October Started Lippo Cikarang Township September Launched its first retail stratatitled project, and followed by 7 others July Merger of 8 property-related companies, in Property, Healthcare & Hospitality business Launched Kemang Village, a large scale integrated dev t. in South Jakarta January Launched San Diego Hills Memorial Park Opened Px Pavilion at St Moritz, as part of integrated development in West Jakarta January The Company formalised its 6 BU : Urban Devt, Large Scale Integrated, Healthcare, Retail Malls, Hospitality & Infras, and Property & Portfolio Mgmt. Launched Embarcedero, an integrated development in Bintaro, South Jakarta January Launched St Moritz Panakukang, an integrated development in the city center of Makassar 1990 1993 1997 2002 2004 2005 2007 2008 2009 2012 2013 2014 June September August August May May Started Tanjung Bunga Township Launched City of Tomorrow (CITO), its first large scale integrated development in Surabaya Launched The St.Moritz, a large scale integrated development in West Jakarta December Opening of Pejaten Village, its first leased mall, in South Jakarta Launched Nine Residence, a large scale integrated development in North Kemang Jakarta Launched Holland Village, a large scale integrated development in Central Jakarta October Launched Lippo Thamrin, an Office Tower in CBD Jakarta Launched Holland Village Office Tower in Central Jakarta 50
LATEST AWARDS Lippo Karawaci received Top Ten Developer In Indonesia 2014 (from BCI Asia) Siloam Hospitals received The European Awards for Best Practices 2014 (from European Society for Quality Research (ESQR)) Siloam Hospitals received Corporate Image Award 2014 (from Frontier Consulting) Siloam Hospitals received Indonesia Healthcare Most Reputable Brand 2014 In 7 big cities, Jabodetabek, Makassar and Depansar (from Swa Magazine) Lippo Cikarang received Top Performing Listed Companies 2014 For Market Cap < Rp10 trillion (from Investor Indonesia) Siloam Hospitals received Indonesia Best New Issuer 2014 (from Warta Ekonomi Indonesia) Lippo Karawaci received Most Admired Companies 2014 The Third in Property Industry (from Fortune Indonesia) Lippo Karawaci received The 2014 Best Company For Leadership Property Development in Indonesia (from IAIR Hongkong) South East Asia Property Awards : Best Developer in SE ASIA 2013 (from Ensign Media) South East Asia Property Awards : Best Developer in Indonesia 2013 (from Ensign Media) 51
SHARE PRICE PERFORMANCE Closing Price (Rp) 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 - (LPKR.JK ; LPKR IJ) Volume (Shares) 1,000,000,000 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 900,000,000 800,000,000 700,000,000 600,000,000 500,000,000 400,000,000 300,000,000 200,000,000 100,000,000 - Average Daily Trading Value Jul 13 Jun 14 (in USD) Market Cap as of 30 Jun 2014 in Comparison with Peers 16,000,000 2,312 (in USDmn) 14,000,000 1,878 12,000,000 10,000,000 1,424 1,388 8,000,000 1,189 6,000,000 736 4,000,000 2,000,000 - Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Source : Indonesia Stock Exchange Dec 13 Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Lippo Karawaci Bumi Serpong Damai Pakuwon Jati Summarecon Agung Ciputra Development Alam Sutra 486 Agung Podomoro 52
TOP 20 LISTED COMPANIES BY TRADING VALUE Period : January June 2014 20 Most Active Stocks by Trading Value No. Listed Stocks 1. Bank Rakyat Indonesia (Persero) Tbk. 4,922,705,014 46,194,958,719,596 6.48 531,434 119 2. Astra International Tbk. [S] 5,782,490,061 41,978,314,517,837 5.89 3. Telekomunikasi Indonesia (Persero) Tbk. [S] 17,507,776,590 40,883,040,748,332 5.73 4. Bank Mandiri (Persero) Tbk. 4,044,194,476 Total Trading Volum e Value (Rp) % 38,319,503,524,214 5. Trada Maritime Tbk. 17,123,096,354 29,842,369,528,497 4.19 5.38 Freq. (X) Trading Days 501,817 119 566,314 119 453,727 119 111,019 102 6. Bank Central Asia Tbk. 2,436,448,175 25,902,087,858,817 3.63 7. Semen Indonesia (Persero) Tbk. [S] 1,280,853,770 19,554,654,624,618 2.74 8. Bank Negara Indonesia (Persero) Tbk. 3,643,193,873 9. Perusahaan Gas Negara (Persero) Tbk. [S] 2,997,316,389 15,126,930,840,074 2.12 10. Siloam International Hospitals Tbk. [S] 1,306,554,674 14,650,948,001,475 2.06 11. Matahari Putra Prima Tbk. [S] 5,257,005,891 12,976,917,157,605 1.82 12. Lippo Karaw aci Tbk. [S] 11,582,908,099 13. Kalbe Farma Tbk. [S] 7,180,890,559 10,576,262,851,584 1.48 14. Saw it Sumbermas Sarana Tbk. [S] 9,984,296,585 10,472,331,507,812 1.47 15. Matahari Department Store Tbk. 768,690,128 10,392,922,668,943 1.46 16. Indocement Tunggal Prakarsa Tbk. [S] 428,044,107 17,154,048,590,050 11,849,296,414,238 9,764,370,598,407 17. Wijaya Karya (Persero) Tbk. [S] 4,350,853,409 9,585,244,671,472 1.34 18. Adhi Karya (Persero) Tbk. [S] 3,592,722,700 9,316,170,549,043 1.31 19. Indofood Sukses Makmur Tbk. [S] 1,319,552,079 9,298,720,701,592 1.30 20. PP London Sumatra Indonesia Tbk. [S] 4,418,180,664 9,100,197,501,428 1.28 2.41 1.66 1.37 305,974 119 359,627 119 379,265 119 390,181 119 38,538 119 108,084 119 244,300 119 545,300 119 739,512 119 238,939 119 259,225 119 317,281 119 322,006 119 244,226 119 332,318 119 Source : IDX 53
INVESTOR RELATIONS Mark Wong (Executive Director) email :Mark.Wong@lippokarawaci.co.id Address : Menara Matahari, 22 nd Floor 7 Boulevard Palem Raya Lippo Village Tangerang 15811 Banten Indonesia telp.+62 21 25669000 fax. +62 21 25669098 website : www.lippokarawaci.co.id 54