PT Kawasan Industri Jababeka Tbk. Investor Presentation March 2021 (With FY20 Audited Report Highlights & FY21 Guidance)
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PT Kawasan Industri Jababeka Tbk. Investor Presentation March 2021 (with FY20 Audited Report Highlights & FY21 Guidance) 0 Disclaimer This presentation material has been prepared by PT Kawasan Industri Jababeka Tbk (the “Company”) and may contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as “expects,” “plan,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice. The information has been compiled from sources believed to be reliable. The information contained in this section is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the Company. The Company makes no representation regarding, or assumes any responsibility or liability for, the accuracy or completeness of, or any errors in or omissions from, any information contained herein. 1 Outlook & Guidance for 2021 Marketing Sales & Other Highlights Cash Flow Overview for 2021: 2020 Real Estate Marketing Sales Achievement Cash inflow: • Rp1,450bn • Rp898.7bn realized in 2020, about 46% less compared - 50% Backlog (3/4 Cikarang/others – 1/4 Kendal) to 2019 mainly due to the Covid-19 pandemic - 50% New Sales (2/3 Cikarang/others – 1/3 • On a positive note, the performance in 2H20 was Kendal) more than 2.5x 1H20 on the back of an industrial • Rp400bn Recurring EBITDA from power, water, port pick-up in Kendal and Cikarang, and a successful and other recurring businesses launch of a landed residential project in Cikarang • Total: Rp1,850 billion 2021 Real Estate Marketing Sales Target Cash outflow • Rp1,400bn: • Rp250bn Construction & Land Development in - Rp1,000bn Cikarang & Others: 50/50 split Cikarang between Industrial vs Residential/Commercial • Rp400bn Infrastructure & Land Development in Kendal - Rp400bn Kendal: all industrial • Rp100bn Maintenance Capex • Positive momentum of 2H20 carried on into early • Rp150bn Land Acquisition (discretionary) 2021 • Rp400bn Interest • Solid pipeline for industrial in both Cikarang and • Rp450bn SG&A (excl. infra) Kendal • Rp150bn Tax • Launch plan of 3-4 residential & commercial products • Total: Rp1,900 billion Infrastructure – resilient in terms of margin, cash flow Cash balance of Rp1.15trillion as at 31 December 2020 despite pressure on volume in 2020 (yoy reductions of (compared to about Rp1trillion at the end of 2019). 15% for water, 9% for power end-users, 24% for TEU port volume – offset by PLN capacity payments and other Total debt expected to stay flat for the year as principal infrastructure services in 2020 2021 expected to be in repayments of loans at subsidiary / JV levels are mostly line with 2020 offset by drawdown of maximum Rp100bn (likely less in 2021) of a new loan (provided by OCBC) at Kendal for Leisure & Hospitality – not very material with overall infrastructure development (cost of ~10% per annum) small contributions to earnings & cash flow 2 Jababeka Group Joins the Fight against Covid-19 Together with President University, Jababeka Group initiated a crowd- funding exercise, which has raised nearly Rp 7 billion (and counting) for medical equipment required to combat Covid-19 Collaboration with tenants Croda Indonesia, Evonik Indonesia and Danone Indonesia for the production and packaging of hand sanitizers and disinfectant fluids – totally producing 15 tons so far Together with several tenants produced 50,000 fabric face masks for the Covid-19 task force in Bekasi Together with President University and numerous tenants provided Rp 7.2 billion in to the Bekasi Regency to combat and prevent the spread of Covid-19 Distribution of free face masks in and around Kota Jababeka Providing social aid to 13 villages in and around Kota Jababeka Preventive spraying of disinfectants at all office premises, providing hand sanitizer for all staff, checking body temperatures, etc. Jababeka Fighting Covid which includes Jababeka, tenants and Government create a routine event called Treasure Market which sell used clothes and the revenue from that event will be used to develop MSME. 3 Leading township developer & infrastructure powerhouse PT Kawasan Industri Jababeka Tbk. ("KIJA") is a leading township developer with an established track record in industry- based townships supported by residential & commercial components... FY20 Revenue Breakdown (%) PT Kawasan Industri Jababeka Tbk (Rp 2,396 billion) Dry Port; 6% Real Estate Infrastructure Water / Estate; 12% Industrial Power Residential Water & Estate Real Estate & Others; Power; 27% 56% Commercial Dry Port Established in 1989 and became the first publicly listed industrial estate developer in Indonesia in 1994 FY20 Gross Profit Breakdown (%) Kota Jababeka, KIJA's flagship development, is a mature industry- (Rp 1,018 billion – 43% GPM) based integrated township in Cikarang with on-site power plant and dry port Dry Port ; 4% Kendal Industrial Park – Park by the Bay in Central Java, tourism- Water / Estate; 14% based townships in Tanjung Lesung, Banten, and in Morotai, North Maluku - all three enjoy Special Economic Zone status Large and strategically located land bank of 5,090 hectares as 31 December 2020 Power; 17% Real Estate Vision: To Create Modern Self Sustained Cities in Every & Others; Province in Indonesia and Provide Jobs for Better Life 65% …with world class infrastructure to support its development 4 Milestones & Selected Awards More than 30 years track record in township development Golden Property 6th Property Award 2019 Indonesia Awards 2016 The Best Township 2018 Development Project – The Recommended Groundbreaking Kota Jababeka Condominium Kendal Industrial Cikarang Development in 2014 Park – Park by Cikarang - Kawana the Bay Golf Residence D’Khayangan 2013 Senior Living Golden Property Launched Award 2019 Bekasi 2011 Lifetime Achievement Power Plant commenced Award to Mr.Setyono Acquisition 2010 operations Djuandi Darmono of 1,500 ha land in 2003 Cikarang Dry Port begins Tanjung 2001 operations Lesung, Commenced Banten 1996 development of Inauguration of Property Guru - 2020 1994 Jababeka CBD Education Park, Best Developer & 1989 Acquisition of including President Industrial Estate IPO on Menara Batavia University Jababeka Group Jakarta and in Jakarta CBD established and Surabaya started Stock development of Exchange the industrial estate 5 Sizeable land bank in strategic locations with upside potential Kota Jababeka Cikarang Fully integrated and matured city development 35km east of Jakarta, 45mins from Jakarta’s CBD Master plan: 5,600 hectares 35km east of Jakarta Most established industrial area in Greater Jakarta, home Land Bank: 1,240ha(1) to >2,000 local and multinational companies INDONESIA Tanjung Lesung Kota Jababeka Kendal, Cikarang Central Java Semarang Karawang Surabaya Tanjung Lesung Master plan: 1,500 hectares 170km southwest of Jakarta Land Bank: 1,496ha(1) Kendal, Central Java Special Economic Zone for Master plan: 2,700 hectares Industrial Estate Designated as a Special Economic Zone for Tourism 450km east of Jakarta Located 170km southwest of Jakarta and covers more than Land Bank: 560ha(1) Strategically located along the 1,500 ha of land on a peninsula facing the Indian Ocean Jakarta-Semarang-Surabaya Envisaged to become a first-class integrated resort Offers a deep pool of young Economic Corridor destination for both domestic and international tourists and skilled labour at a competitive cost Note: 1 Land bank as at 31 December 2020 6 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… • 35 KM from Jakarta City • Close to International Airport & Seaport JORR 2 Toll Road Cibitung – Tanjung • Accessible by toll road and railway Priok Seaport ±1.5 • Connectivity with 3 Toll Access / Exit hours • Development of Major Transportation KOTA Infrastructure JAKARTA JABABEKA Cikarang Train Station Lemah Abang 6 lane Highway of Jakarta Inner Ring Road Train Station Proposed MRT Station KM 29 LRT MRT High speed train KM 31 Tranportation infrastructure (Proposed / Under Construction) KM 34 LRT Track High Speed Train Elevated Toll Road MRT Track Double-double track Railway Commuter train Elevated toll road JORR 2 Jakarta 2nd Outer Ring (JORR) Road 7 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