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.
Largest listed property Company by Revenue and Total Assets. Revenue and Net Income for Q1 2014: US$176 million and US$30 million, respectively. Fastest growing Indonesian real estate group (market cap grew by more than 10x to US$ 2.2 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 Mar 28 2014 2 Affirmed on April 2, 2014 3 Affirmed on April 2, 2014 4 Affirmed on April 2, 2014
N KALIMANTAN SULAWESI MALUKU PAPUA JAVA
N NORTH JAKARTA WEST JAKARTA CENTER OF JAKARTA SOUTH JAKARTA EAST JAKARTA
DEVELOPERS Majority of Indonesian Developers Developer, Operator and REIT & Portfolio Managers PROPERTY OPERATIONS Majority of Indonesian Developers REITs
Transforming US$3 billion to US$8 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 US$3 billion Retail Malls Group. Transformational Hospital Group scale-up to US$3.5 billion in 5 years. Build a US$7.5 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.
JW MARRIOTT HOTEL 500 UNITS NEW AMBASSADOR SUITES 167 UNITS NEW PRESIDENTIAL SUITES 159 UNITS OFFICE AMBASSADOR SUITES 144 UNITS NEW ROYAL SUITES 197 UNITS ROYAL SUITES 231 UNITS SILOAM HOSPITALS PRESIDENTIAL SUITES 140 UNITS CONVENTION CENTER SEA WORLD CLUB HOUSE WEDDING CHAPEL SHOPPING MALL INTERNATIONAL SCHOOL
Building the CBD of Makassar Payment Profile Cash 23% Mortgage 1% Installment 76%
Integrated Development in South Jakarta Payment Profile Cash 13% Mortgage 18% Installment 69%
25 Unrivalled scale across Indonesia JCI Standard Operational Hospitals (16) Future Developments (24)
26 SILOAM HOSPITALS LIPPO VILLAGE TANGERANG (West of Jakarta) 308 Bed Capacity 271 GP and Specialists 476 Nurses Centre of Excellence : Neurosience & Heart Centre SILOAM HOSPITALS KEBON JERUK WEST JAKARTA 279 Bed Capacity 210 GP and Specialists 340 Nurses Centre of Excellence : Urology & Orthopaedic SILOAM HOSPITALS SURABAYA EAST JAVA 182 Bed Capacity 150 GP and Specialists 272 Nurses Centre of Excellence : Fertility Centre SILOAM HOSPITALS CIKARANG BEKASI (East of Jakarta) 110 Bed Capacity 90 GP and Specialists 160 Nurses Centre of Excellence : Occupational Health JCIA MRCCC SILOAM SEMANGGI SOUTH JAKARTA 331 Bed Capacity 166 GP and Specialists 238 Nurses Centre of Excellence : Cancer Centre SILOAM HOSPITALS JAMBI EAST SUMATERA 106 Bed Capacity 56 GP and Specialists 126 Nurses Centre of Excellence : Emergency & Trauma 83% Ownership SILOAM HOSPITALS BALIKPAPAN EAST KALIMANTAN 228 Bed Capacity 82 GP and Specialists 153 Nurses Centre of Excellence : Emergency & Trauma and Orthopedics 79.6% Ownership
27 SILOAM GENERAL HOSPITAL (RSUS) TANGERANG (West of Jakarta) 666 Bed Capacity 69 GP and Specialists 209 Nurses SILOAM HOSPITALS CINERE DEPOK (South of Jakarta) 37 Bed Capacity 8 GP and Specialists 48 Nurses Centre of Excellence: Cardiology SILOAM HOSPITALS MANADO NORTH SULAWESI 230 Bed Capacity 79 GP and Specialists 134 Nurses Centre of Excellence : Emergency 80% Ownership SILOAM HOSPITALS MAKASSAR SOUTH SULAWESI 360 Bed Capacity 85 GP and Specialists 259 Nurses Centre of Excellence : Cardiology & Emergency SILOAM HOSPITALS SRIWIJAYA PALEMBANG, SOUTH SUMATERA 347 Bed Capacity 117 GP and Specialists 177 Nurses Centre of Excellence : Emergency & Trauma
28 SILOAM HOSPITALS BALI BALI 281 Bed Capacity 99 GP and Specialists 186 Nurses Centre of Excellence : Emergency, medical tourism, orthopaedics & cardiology BIMC Kuta BALI 19 Bed Capacity 52 GP and Specialists 65 Nurses Centre of Excellence : Emergency 80% Ownership SILOAM HOSPITALS TB SIMATUPANG SOUTH JAKARTA 270 Bed Capacity 91 GP and Specialists 141 Nurses Centre of Excellence : Emergency, cardiology, oncology & neuroscience BIMC Nusa Dua BALI 31 Bed Capacity 34 GP and Specialists 74 Nurses Centre of Excellence : Emergency 80% Ownership SILOAM HOSPITALS MEDAN NORTH SUMATERA SILOAM HOSPITALS KUPANG EAST NUSA TENGGARA SILOAM HOSPITALS PURWAKARTA WEST JAVA
11.55 2) 3,872 2) 2,806 2) 3.00 1,400 1,250 6.16 1) 3.13 4.19 0.88 5.28 6.66 8.55 854 1,083 1,686 1) 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
1,000 900 800 700 600 500 400 300 200 100-951 620 - Residential & Urban Development 751 584 146 163 124 148 - Healthcare - Commercial - Asset Management 400 350 300 250 200 150 100 50-360 231 - Residential & Urban Development 110 85 65 62 61 59 - Healthcare - Commercial - Asset Management
AS OF 31 DECEMBER (Unless otherwise stated) Rp Billion 31 Mar 2014 2013 2012 2011 2010 TOTAL ASSET 31.615 31.300 24.869 18.259 16.155 TOTAL LIABILITIES 16.500 17.123 13.399 8.850 7.976 TOTAL EQUITY 13.614 12.801 10.656 8.834 7.710 TOTAL DEBT 7.303 7.808 6.014 3.753 3.376 CASH AND CASH EQUIVALENTS 1.945 1.855 3.337 2.175 3.660 D/E RATIO 0.5 0.6 0.6 0.4 0.4 NET GEARING RATIO 0.4 0.5 0.3 0.2 -
450 400 350 300 250 200 252.9 403.3 130.00 150 100 50 0 273.31 250.00 150.00 0.4 1.6 2.9 2013 2014 2016 2019 2020 2022 * Bank Loans (except Bonds) are denominated in IDR
PROJECTS 2011 2012 Q1'13 2013 Q1'14 Budget 2014 URBAN DEVELOPMENT Lippo Village 152 241 36 113 4 975 Lippo Cikarang 1,301 2,061 551 1,698 175 2,000 Tanjung Bunga 303 577 126 433 53 700 San Diego Hills 126 185 28 156 41 200 Sub Total 1,882 3,064 741 2,400 273 3,875 CONDOMINIUM Kemang Village 495 747 211 310 6 51 The St Moritz (JKT) 568 655 162 187 40 440 Park View 222 17 3 11 - Nine Residence - 182 29 67 3 City of Tommorow 1 - - - - New Projects - - - - - 1,450 - Holland Village - - - 510 3 661 - Lippo Thamrin Office - - - 619-342 - St Moritz Makassar - - - - 219 - - Embarcadero Suites - - - - 356 - Sub Total 1,286 1,601 405 1,704 627 2,944 RETAIL INVENTORIES 11 18 4 11 2 - Sub total - Property 3,179 4,683 1,150 4,115 901 6,819 ASSET SOLD TO THE REITS - 2,077-1,482-3,200 TOTAL MARKETING SALES 3,179 6,760 1,150 5,597 901 10,019
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
45% 55% 35% 65% 1 st 10 Years 60% Succeeding 20 Years 40%
No OWNER 31 Dec 08 31 Dec 09 31 Dec 10 31 Dec 11 31 Dec 12 31 Dec 13 31 Mar 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 341 378 403 411 444 455 456 5 ARMY / POLICE 112 125 131 134 155 159 168 6 OTHER MINISTRIES / PUBLIC COMPANIES 78 78 79 80 79 79 79 7 PRIVATE 673 768 840 893 1,179 1,314 1,362 TOTAL 1,371 1,523 1,632 1,721 2,066 2,228 2,289
- 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 700,000,000 800,000,000 900,000,000 1,000,000,000-100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 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- 13-5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 2,196 2,509 1,543 1,479 1,348 1,026 509 Lippo Karawaci Bumi Serpong Damai Ciputra Development Pakuwon Jati Summarecon Agung Alam Sutra Agung Podomoro
20 Most Active Stocks by Trading Value No. Listed Stocks Total Trading Trading Volume Value (Rp) % Freq. (X) Days 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Bank Rakyat Indonesia (Persero) Tbk. Astra International Tbk. [S] Bank Mandiri (Persero) Tbk. Trada Maritime Tbk. Telekomunikasi Indonesia (Persero) Tbk. [S] Bank Central Asia Tbk. Semen Indonesia (Persero) Tbk. [S] Bank Negara Indonesia (Persero) Tbk. Perusahaan Gas Negara (Persero) Tbk. [S] Matahari Department Store Tbk. Lippo Karaw aci Tbk. [S] Siloam International Hospitals Tbk. [S] Bank Tabungan Pensiunan Nasional Tbk. Matahari Putra Prima Tbk. [S] Kalbe Farma Tbk. [S] Saw it Sumbermas Sarana Tbk. PP London Sumatra Indonesia Tbk. [S] Indofood Sukses Makmur Tbk. [S] Wijaya Karya (Persero) Tbk. [S] Indocement Tunggal Prakarsa Tbk. [S] 2,853,324,368 3,069,685,362 2,172,914,059 10,298,090,718 7,466,759,229 1,233,419,875 600,225,486 1,957,846,634 1,711,520,781 526,340,340 6,955,503,898 635,336,613 994,459,848 3,026,090,510 4,306,488,177 6,295,103,000 2,805,666,930 647,188,289 2,177,851,294 199,871,493 25,281,055,691,909 21,547,150,668,511 19,624,877,453,396 17,352,515,613,009 16,718,758,086,284 12,620,788,306,358 9,067,714,767,037 8,850,822,989,425 8,188,216,155,045 6,866,034,811,870 6,847,989,869,231 6,442,301,064,400 6,430,511,193,200 6,425,028,681,875 6,073,977,195,005 6,014,578,352,500 5,348,314,159,827 4,602,799,424,245 4,592,538,209,995 4,457,575,289,105 7.08 6.03 5.50 4.86 4.68 3.53 2.54 2.48 2.29 1.92 1.92 1.80 1.80 1.80 1.70 1.68 1.50 1.29 1.29 1.25 286,093 261,500 240,352 63,155 301,995 163,885 170,275 204,145 241,736 129,458 138,625 20,280 6,367 51,322 306,003 366,484 192,077 119,460 150,967 130,492 60 60 60 60 60 60 60 60 60 60 60 60 59 60 60 60 60 60 60 60
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