PT Lippo Karawaci Tbk Investor Presentation
January 2020 1 Indonesia’s leading integrated real estate platform
Disciplined financial management The largest real estate company The only fully integrated business model supported by Fitch & S&P recent upgrades Investments Real Estate & Fund Management #1 #1 #1 Management B- B- Real Estate & Services B3 by revenues by recurring by assets 8,000+ ha Fitch Standard Development Moody’s revenues of development & Poor's rights
Recurring revenues driven by market One of the strongest balance sheet Largest by total revenues leading Healthcare & Mall franchises with low Debt / Equity
(IDR tn) (IDR tn) 0.93x 0.83x 8.3 6.8 0.53x 5.2 5.2 4.7 4.4 0.39x 2.7 0.35x 0.29x 2.0 1.7 1.4 1.2 0.4
LPKR PWON BSDE CTRA SMRA ASRI LPKR PWON SMRA CTRA BSDE ASRI SMRA ASRI CTRA BSDE LPKR PWON
Largest by total assets Largest by AUM No significant debt maturing until 2022(1) (IDR tn) (IDR tn) (USD mn) IDR Loans Bonds 56.8 600 53.3 417 35.5 20 400 325 25.7 23.9 21.8 10 200 99 - - - - 6 6 14 9 2 - LPKR BSDE CTRA PWON SMRA ASRI LPKR BSDE CTRA PWON SMRA ASRI 2020 2021 2022 2023 2024 2025 2026
Note: All figures as of year-to-date or on the day of 30 September 2019, as applicable 2 (1) Post USD 310mn of 2022 bonds being called in February 2020 Why invest in PT Lippo Karawaci Tbk (“LPKR”) now?
1 2 Indonesia property market’s Simplified organization and indicators signal a potential refocused strategy acceleration
Operations are ideally Valuation is low positioned for growth and uncorrelated with fundamental value 3 4
3 1 Indonesia property market’s indicators signal a potential acceleration
Annualized property price growth in Q2 2019 is at 15 year low Marketing sales expected to grow at double digit rate in 2020
16% 20% 12% 16% 8% 15%
4% 1.5% 11% Average: 11% 10% 10% - 10% Mar-03 Jun-06 Sep-09 Dec-12 Mar-16 Jun-19 7% Source: Bank of International Settlements . Greater Jakarta property price growth slowed in 2Q2019 1.5% YoY, the lowest 5% growth rate in more than 15 years
Jakarta high-rise residential sales remains at historically low levels - Analyst 1 Analyst 2 Analyst 3 Analyst 4 Analyst 5
Source: Company filings, analysts report. Percentages based on average of each analysts’ forecast on a set of listed peers ‘000 units 8.0 . Going into 2020, marketing sales are expected to pick up sharply supported 7.0 by: 6.0 ‒ Government policy support 5.0 4.0 ‒ Post-election political stability 3.0 ‒ Decreasing mortgage rates resulting in improvement in affordability of 2.0 home purchases 1.0 ‒ Increased focus on lower-middle end projects to meet stronger
-
3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q10 demand in the affordable housing segment
Source: JLL 4 1 Indonesia property market’s indicators signal a potential acceleration Supported by solid fundamental drivers and… Indonesia GDP growth projected at 5.0% - 5.5% Rapid urbanization driving residential demand Real GDP YoY growth (%) actual & projected Urbanization rate (%) actual & projected
5.4% 2015 Urbanization Rate 2025 Projected Urbanization Rate 5.3% 5.3% 5.3% 5.3% 6% 6% 5% 1% 100% 100% 5.2% 5.2% 5.2% 5.2% 80% 5.2% 75% 5.1% 60% 5.1% 5.1% 54% 5.0% 45% 40% 44% 5.0% 4.9% 34%
4.9%
4.8% 2014 2015 2016 2017 2018 2019F 2020F 2021F 2022F 2023F 2024F Vietnam Indonesia Malaysia Philippines Singapore Source: Bloomberg, IMF Source: World Cities Report, United Nations
Home ownership is low in Jakarta relative to regional peers Mortgage loan penetration is low relative to regional peers Home ownership rates among resident households (%) Housing loans as % of GDP (2018)
91% 91% 90% 87% 80% 49% 73% 42%
48% 23%
13%
3%
Singapore Vietnam China India Malaysia Indonesia Jakarta Malaysia Singapore Thailand Philippines Indonesia
Source: National census results, Peking University Institute of Social Sciences, Badan Pusat Statistik (BPS) Source: Bloomberg 5 1 Indonesia property market’s indicators signal a potential acceleration …catalysts for an acceleration in the near term Cheaper mortgage loans bolster home affordability Government driving supportive regulatory regime Blended mortgage rates (%)
. Bank Indonesia relaxed mortgage policies : 11.0% o Loan-to-value for mortgages increased from 85% to 100% for 10.58% first-time home buyers 10.5% 10.12% o Limit on mortgage facilities per consumer increased from 2 to 5 10.0% 9.87% o Accelerated mortgage disbursement from banks for each stage 9.68% 9.53% of development of property 9.42% 9.5% 9.36%
. The Ministry of Finance increased the threshold of the 20% luxury 9.0% tax in Jun 2019 to IDR 30bn from IDR 10bn and IDR 20bn for Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19
apartments and landed houses respectively Source: Residential Property Survey, Bank Indonesia
Marketing sales growth have picked up post-elections in 3Q2019 . The Ministry of Public Housing broadened eligibility to receive QoQ growth of total marketing sales value of major developers(1) mortgage interest subsidies to include civil servants, military personnel, police officers, and low-to-middle income millennials in 80% a bid to increase home ownership 60% 63%
40% 37%
20% 13% - (21%) (20%) (21%) (33%) (40%) (27%) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Company filings
Notes: (1) Calculated from the aggregate quarterly marketing sales value of LPKR, Bumi Serpong Damai, Ciputra Development, Pakuwon Jati, and Summarecon Agung 6 2 Simplified organization and refocused strategy 3 pillars leveraging on LPKR’s unique strengths
Pillar Land Banking & Development Real Estate Management & Services Investments and Fund Management
. Development of residential, commercial . Management of real estate assets, as . Management of third-party capital for and industrial properties well as the services that operate within real estate related investments including healthcare, malls, hotels, . Development of cohesively designed . Managed synergistically and with Description parking, town management and independent townships independence from the real estate cemetery services development business to generate returns and unlock value of assets . LPKR: holding company and developer . Healthcare: controlling shareholder of . Strategic stakes in SGX-listed REITS: of high-rise and landed properties across Siloam, the largest private hospital group ‒ LMIR Trust: c. SGD 2bn AUM portfolio Indonesia including projects such as in Indonesia with 36 hospitals across 24 of premier retail assets in Indonesia(1) Holland Village Jakarta, Holland Village cities Manado, Kemang Office, Millennium ‒ First REIT: c. SGD 1bn AUM portfolio . Malls: largest mall operator in Indonesia Village and Embarcadero Suites of 20 high-quality healthcare assets managing 51 malls including 3 in Singapore and 1 in . LPCK: developer of Lippo Cikarang, the Position . Hotels: operator of Aryaduta Hotels, one South Korea largest integrated township in the of the largest hotel groups in Indonesia eastern corridor of Jakarta – including . Fund Management: manager of LMIR with 10 locations across the country Orange County mixed used development Trust (including 4 owned hotels) . GMTD: developer of the Tanjung Bunga area in Makassar
. Quality, sizable and low cost landbank . Market leading position for key growth . Unique organic growth pipeline segments: healthcare & malls Competitive . Integrated ecosystem supports creation . The only Indonesian developer with SGX- Advantage of mixed-use developments listed REIT
The only integrated end-to-end real estate platform with unique growth potential and competitive advantage across the value chain in Indonesia
Notes: (1) Based on portfolio valuation as of 2018 7 2 Simplified organization and refocused strategy Revised strategy focused on disciplined capital allocation approach across segments and supported by efficient asset rotation
HoldCo
. No increase in head office personal expenses over the next 3 years . No increase in consolidated leverage coupled with active maturity management of existing debt
Land Banking & Development Real Estate Management & Services Investments and Fund Management
No equity in new projects developed: ROCE-accretive growth Active approach to managing projects being effectively self-funded proprietary portfolio of assets as well by leveraging on LPKR’s existing Operating and efficiency as 3rd party assets Capital landbank and future marketing sales improvement targeting substantial Allocation EBITDA margin improvement Explore alternative avenues to Strategy Value vs Volume: focus on new recycle capital landed projects with shorter time Active asset recycling / disposal frame for completion strategy Incremental capital requirement limited to seeding minority position in New projects focused around 3 core new funds areas: Karawaci, Makassar and Cikarang where LPKR has differentiated landbank assets
Active portfolio management strategy to be executed with IDR 3 – 4 tn worth of non-core assets (excl. sale of Puri Mall) identified for ROCE-accretive disposals
8 2 Simplified organization and refocused strategy New leadership team focused on corporate governance and transparency
Board of Commissioners provides adequate representation to minority shareholders
John A Prasetio Dr. Stephen Riady George Raymond Zage III Kin Chan Anangga W. Roosdiono Independent President Commissioner Commissioner Commissioner Independent Commissioner Commissioner
President Commissioner of the Executive Chairman of OUE Founder and Chief Executive Founding shareholder and Chief Founder and Senior Partner of Indonesia Stock Exchange since Limited, Executive Director of Lippo Officer of Tiga Investments Investment Officer of Argyle Street Roosdiono & Partners. Prior to the 2017 Limited and Hong Kong Chinese Prior to the role, he served as Chief Management role, he served as Senior Legal Other notable roles include Limited Executive Officer, Managing Previous roles as Executive Director Advisor at PT Mobil Oil Indonesia Indonesian Ambassador to Strong record of public service Director and Portfolio Manager at at Goldman, Sachs & Co, Chief and Partner at Makarim & Taira Republic of Korea, Asia Pacific including the role as an Advisor in Farallon Capital Management Executive and Managing Director of Vice Chairman of the Indonesian CEO of Andersen Worldwide, the Hong Kong and Macao Office of Non-executive Director of Lazard Asia Limited Arbitration Board and member of Executive Chairman of EY the State Council Whitehaven Coal Limited the ASEAN Business Advisory Indonesia, Independent Council Commissioner of PT Global Independent Director of Toshiba Mediacom Tbk Corporation
Key Management Team with appropriate ESOP in place to ensure alignment of interests
John Riady Surya Tatang Peter Yu Rudy Halim Bret Ginesky Chief Executive Officer Chief Financial Officer Director of Projects Chief Operating Officer Head of Investor Relations
Director of PT Lippo Karawaci Tbk Previously Chief Financial Officer Previously Manager of Property Previously Group President Director Previously Head of Investor and various executive positions at and Independent Director of PT Development at various regional of PT Mitra Pinasthika Mustika Tbk, Relations at PT Indika Energy, and Lippo Group companies Link Net Tbk, and Corporate firms including Impiana Group, IGE a leading player in Indonesia’s Head of Investor Relations at PT President Commissioner of PT Finance at PT Star Pacific Tbk Group of Companies, Keppel Land motorcycle distribution industry, and Bank Mandiri Siloam International Hospitals Tbk Formerly the Head of Research at and MK Land Energy Business Head / Director of Formerly a Research Analyst at PT Sinarmas Group Holds degrees in Political Sucorinvest Central Gani CLSA Indonesia covering Philosophy and Economics from Strong experience in operations, Indonesian banks and multifinance Georgetown University; an MBA leading company transformations companies from the Wharton School of and investments Previously worked as an equity Business, and a Juris Doctor from Held several senior roles in IDX- analyst covering US Banking sector the Columbia University Law School listed and private Indonesian at Stifel Nicolaus and Hibernia companies Southcoast Capital
9 3 Successfully repositioned operations for growth Strengthened balance sheet following USD 788mn rights issue
Gearing is at historically low levels No significant debt maturing until April 2022(1)
0.80x Coupon rate IDR Loans Bonds USD million 6.75% pa 450 0.70x Coupon rate 417 0.70x 400 8.125% pa 350 325 0.60x 300 0.60x 0.57x 250 Coupon rate 200 7% pa 150 0.50x 0.54x 0.53x 0.47x 99 0.46x 100 50 0.46x 6 6 14 9 2 0.40x - 0.35x 2020 2021 2022 2023 2024 2025 2026
0.30x Currency risk is offset by hedging strategy 0.31x 0.30x IDR : USD 0.20x COUPON 2026 0.21x 13,300 17,000 B O N D 2 0 2 6 0.10x 11,500 14,500 17,000 B O N D 2 0 2 2 11,500 14,000 17,000 - Hedged Unhedged 2016 2017 2018 1Q19 2Q19 3Q19 . From time to time, LPKR enters into non-deliverable USD call Net Debt / Equity Debt / Equity spread options to protect USD denominated bonds principal & coupon payments.
Note: 10 (1) Post USD 310mn of 2022 bonds being called in February 2020 3 Successfully repositioned operations for growth LPKR’s on-going projects are on track to be fully completed by end of 2020 OccupancySignificant Trendconstruction progress since rights issue MallsAggregate Under LPKR Management projects under construction(1)
Construction progress 100% 100% 97% 91% 90% 81% 80%
70% Apartment 65% Office
60%
50% 42%
40% 32% 28% 30%
20%
10%
0% 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Actual Forecast
Note: (1) Refers to the 7 key LPKR projects under construction in 2019 i.e. Holland Village Jakarta, Millenium Village, Embarcadero and Holland Village Manado 11 3 Successfully repositioned operations for growth LPKR’s businesses have unique organic growth potential
Land Banking & Development Real Estate Management & Services
Significant GDV well-positioned to take advantage of demand pick-up High growth in recurring income businesses Gross development value (“GDV”)(1) by subsidiary (excluding land sales) Revenue EBITDA IDR bn IDR bn IDR tn LPKR LPCK GMTD CAGR: 10% 17% CAGR: 14% 29% 25.0 IDR 16.2tn of GDV to be 1,438 launched in 2020 7,750 1,282 1,224 6,987 to 2022 6,435 6,551 1,098 5,591 947 20.0 4.5 19.4 - 0.3 2.3 IDR 3.2tn of GDV 5.5 2.3 15.0 completed or in - 9.3 progress 2.0 3.5 10.0 6.2 2016 2017 2018 9M18 9M19 2016 2017 2018 9M18 9M19 - 4.3 5.0 9.8 1.6 1.9 Investments and Fund Management - 1.6 1.6 0.3 0.7 - 0.5 Completed In New New New Total Strong pipeline of proprietary assets Progress Projects Projects Projects 2020 2021 2022 . 20 hospitals, malls and hotels currently owned by LPKR which can be injected into related funds and release capital while generating GDV by type(2) GDV by price (IDR / sqm)(2) recurring management fee income . Unparalleled ability to source acquisition opportunities to increase High-rise > 15 AUM by injecting 3rd party assets 23% 11%
Landed 10 < x ≤ 15 77% 89% 4 Hotels Notes: 1 Hospital 15 Malls (1) Defined as management’s estimate of total marketing sales achievable for such developments, subject to successful development and relevant licenses and permits obtention as applicable 12 (2) GDV breakdown by value 4 Historically low valuation uncorrelated with fundamental value LPKR is currently trading at undemanding valuation from historical and relative perspective LPKR Historical Share Price Price-to-Book Price per share close to its historical low LPKR is trading well below its peers’ average IDR 1,600 2.50x
1,200
2.03x 800 2.00x 1.90x
400 IDR 242
- Peers’ average: 1.32x 2015 2016 2017 2018 2019 1.50x 1.32x LPKR vs Siloam Share Price LPKR has not benefitted from Siloam’s rally since March announcement of rights issue IDR 1.00x 500 0.85x 450 +111% 400 0.58x 0.48x 350 0.50x 300 +20% 250 200
150 - Mar-2019 May-2019 Jul-2019 Sep-2019 Nov-2019 SMRA PWON CTRA BSDE LPKR ASRI LPKR Siloam (Rebased)
Source: Company filings, Bloomberg 13 4 Historically low valuation uncorrelated with fundamental value LPKR’s share price implies an 83% discount on its core Land Banking & Development segment
Value Per share(1) (IDR): IDR billion 242 140 382 6 29 82 48 14 23 181 968
80,000 81% Discount 70,000 68,319
60,000
50,000
Pillar 3 Pillar 2 Pillar 1 40,000 9% of Total Asset Value 44% of Total Asset Value 47% of Total Asset Value 30,000 9,893 26,977 394 2,076 5,768
20,000 17,083 3,376 966 1,643 12,754 10,000
- (2) Market Cap Net Debt & Enterprise FREIT LMIRT Siloam Malls Hotels Others Implied Value Appraised Customer Value of Land Value of Land Advances Banking & Banking & Market Value Market Value Market Value 10x 10x 7.5x (3) Valuation Implied Implied 10.8x EV/EBITDA EV/EBITDA EV/EBITDA Development Development Methodology Dividend Yield: Dividend Yield: EV / EBITDA 2019E 2019E 2019E 8.6% 8.9% 2019E Notes: vs 25.2x peers’ avg. (1) Derived based on total number of shares outstanding of 70.6bn as of 31 Dec 2019 (2) Others include Town Management Division, San Diego Hills, Sky Parking, Asiatic Finance, Bowspirit Capital, Prima Cipta Lestari and Sunshine Food Group 14 (3) Appraised value by local partner of CBRE, local partner of CB Richard Ellis, local partners of Baker Tilly International, and FAST. Assuming IDR : USD of 14,174 KEY UPDATES
15 Pillar 1 – Marketing sales execution
OccupancyMarketing Trendsales have started to stabilize and pick up in 2019 Marketing sales are supported by a diversified portfolio driven by projects construction progress Malls Under Management Marketing sales breakdown by nature Marketing sales breakdown by subsidiary
IDR bn IDR bn
3,000 3,000
Peers(1): (1.4%) 2,500 CAGR: (13.6%) 2,500 2,500 2,500
2,138 2,138
2,000 277 1,846 2,000 1,812 1,812 1,846 - 155 142 221 1,598 937 1,598 - 1,500 749 168 1,500 162 310 81 1 714 978 1,109 154 1,000 1,000 75- 1,033 87
1,281 139 1,354 1,112 500 500 79 972 54 903 713 397 432
- - 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Target Target LPKR LPCK GMTD Residential Commercial Industrial San Diego Hills Assets Sold to REIT
Notes: (1) Peers include Bumi Serpong Damai, Ciputra Development, Pakuwon Jati, and Summarecon Agung 16 Pillar 2 – Summary financial performance
Revenue Revenue Revenue Revenue Healthcare Retail Malls Hotels Others
IDR bn IDR bn IDR bn CAGR: 9% CAGR: 7% CAGR: 42% CAGR: 4% 7,000 19% 700 500 12% 900 820 5,965 23% 444 783 6,000 600 450 800 13% 5,168 5,306 5,216 529 522 374 369 486 400 700 5,000 4,396 500 450 335 328 350 600 558 366 300 495 4,000 400 500 250 407 400 3,000 300 200 300 2,000 200 150 100 200 1,000 100 50 100 - - - 0 2016 2017 2018 9M18 9M19 2016 2017 2018 9M18 9M19 2016 2017 2018 9M18 9M19 2016 2017 2018 9M18 9M19
EBITDA & EBITDA Margin EBITDA & EBITDA Margin EBITDA & EBITDA Margin EBITDA & EBITDA Margin Healthcare Retail Malls Hotels Others
IDR bn IDR bn IDR bn IDR bn
12.6% 13.3% 12.8% 12.5% 13.5% 53.9% 44.0% 57.8% 58.8% 55.3% 28.9% 25.0% 26.3% 20.3% 20.5% 17.7% 31.0% 30.4% 24.5% 35.4%
CAGR: 7% CAGR: 4% CAGR: 86% CAGR: 8% 28% 1,000 300 63% 350 302 16% 140 123 243 249 764 114 13% 250 800 705 703 300 262 120 102 651 233 249 198 250 215 100 200 600 547 74 200 80 63 150 121 150 400 60 100 72 100 40 200 50 50 20 0 - - - 2016 2017 2018 9M18 9M19 2016 2017 2018 9M18 9M19 2016 2017 2018 9M18 9M19 2016 2017 2018 9M18 9M19 17 Pillar 2 – Healthcare Siloam is driven by strong market fundamentals and significant operating improvement potential OccupancyNet GOR growth Trend by hospital type Indonesia healthcare spend expected to triple by 2027 Malls9M2018 Under – 9M2019Management Annual healthcare spending, 2017 – 2027E
IDR tn CAGR: 12.0% 78.0% 1,400 1,224 1,200 CAGR: 11.0% 1,000
800 692 600 404 18.7% 18.7% 15.4% 400
3.8% 200 - Flagship Mature Distinct BPJS New 2017 2022 2027 Average Rental Rate Trend Average Revenue InpatientSource: per BMI day Research MallsEBITDAR Under and Management EBITDAR margin by hospital type Network of Hospitals Healthcare infrastructure underpenetrated relative to regional peers 9M2018 – 9M2019 Hospital bed density
IDR bn0.4 5.4 10.4 15.4 40% Hospital bed per 10,000 population 900 29%30% 26 24%26% 24 21%23% 30% 700 21 523 13% 20% 492 10% 19 500 391 405 10% 300 12 0% 100 116 47 41 100 (63) (84) -10% (100) Flagship Mature Distinct BPJS New -20% (300) -30% 9M18 9M19 (29%) Vietnam Singapore Thailand Malaysia Indonesia (500) (35%) -40%
Source: WHO 18 Pillar 2 – Retail Malls Indonesian retail outlook is positive, supported by middle-income growth OccupancyRental rates Trend grew 9% y-o-y in 9M2019 boosted by Specialty stores Growing middle class expected to boost consumer spending MallsAverage Under rental Management rate of malls owned and leased by LPKR Middle and affluent class(1) share of total population
IDR ‘000 per sqm per month 2017 – 2030 5.5% 5.5% 5.2% 2.2% 2.9% CAGR: 113 100.0% 78.0% 108 60.0% 105 104 104 50.0% 44.0% 34.0% 25.0%
0.0% 2016 2017 2018 9M2018 9M2019 Vietnam Philippines Indonesia Thailand Malaysia Source: Boston Consulting Group Occupancy rates remain high at 88% - 89% Occupancy expected to remain around 80% in Greater Jakarta Occupancy rates across malls managed by Lippo Malls Indonesia Occupancy rates (2013 – 2023E)
Jakarta Greater Jakarta 100% 89% 89% 80%
60%
88% 88% 88% 40%
20%
- 2016 2017 2018 9M2018 9M2019 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: Colliers Notes: (1) Based on Boston Consulting Group’s income classification based on relative purchasing power. In Indonesia, middle and affluent income households have monthly incomes exceeding US$224. In the Philippines, these households have 19 monthly incomes exceeding US$465, in Thailand US$442, and in Vietnam US$660. Pillar 2 – Hotels Tourism industry is a key priority of the Government and benefits from favourable initiatives Average room rate(1) Key Drivers 2016 – 9M2019
IDR ‘000 per room per day 5% . Growth in the Indonesian tourism industry has accelerated to 20% p.a. since 2016 from a c. 9% CAGR from 2010 to 2016 on the back of 560 favourable government initiatives:
535 ‒ “The 10 New Balis” initiative in 2016 to replicate Bali’s success in 524 10 new tourist destinations in Indonesia 517 ‒ Total investments of c. USD 20bn to improve connectivity and facilities to these destinations 481 ‒ Infrastructure expansion to meet passenger demand for air travel to increase the total capacity of Indonesia’s 9 largest airports by more than 50% within 4 years ‒ Visa exemption was launched for 169 countries in 2016 in support 2016 2017 2018 9M2018 9M2019 of the tourism industry Occupancy ‒ Engaged in intensive promotion of border tourism and Indonesia as 2016 – 9M2019 a MICE and sports-tourism destination ‒ Aggressive development of ‘halal tourism’ 75%
. The Indonesian tourism industry remains a key priority for the Jokowi 71% 71% 71% administration ‒ Inbound revenue from the tourism sector is critical to reduce future 68% current-account deficits arising from the country’s high dependence on commodity exports ‒ The government has set ambitious targets of 20m visitors and USD 18bn in tourism revenue by 2020
2016 2017 2018 9M2018 9M2019
Notes: (1) Includes Aryaduta Hotel Kuta Bali from 2018 onwards 20 Pillar 3 – Fund management
LMIRT’s AUM has grown at a high CAGR of 12% over last decade Real Estate to attract strong inflows of USD 190bn over 2020-25 LMIRT Portfolio Valuation (2008 – 2018) Breakdown of APAC fund management AUM by fund type
IDR tn USD bn CAGR: 12% 25 8,000 CAGR: 16% CAGR 19 20 2020-25E 20 18 18 17 6,948 7,000 15 14 14 11 10% 6,000 10 8 1,998 6 7 5 5,000 - CAGR: 5% 1,289 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 31% 4,000 CAGR: 17% 3,334 LMIRT has built a diversified portfolio of high-quality assets 382 15% 2,857 Number of LMIRT portfolio properties (2008 – 2018) 3,000 1,246 # Properties 982 35 2,000 336 30 30 173 16% 30 158 192 3,279 26 27 24 25 23 23 1,000 610 1,544 1,560 20 17 15 15 15 245 17 15 90 - 258 10 2007 2017 2020e 2025e 5
- Private Equity Real Estate Infrastructure Assets Hedge Funds 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: PricewaterhouseCoopers
21 Consolidated financial performance
Revenue Gross profit & gross profit margins Consolidated Consolidated
IDR bn IDR bn 48% 45% 50% 49% 42% 12,000 10,962 11,057 10,071 6,000 5,520 10,000 5,215 8,268 8,274 5,000 4,558 8,000 4,073 4,000 3,490 6,000 3,000 4,000 2,000
2,000 1,000
- - 2016 2017 2018 9M18 9M19 2016 2017 2018 9M18 9M19
EBITDA & EBITDA Margins(1) Net profit & net profit margins Consolidated Consolidated
IDR bn IDR bn 22% 5% 21% 21% 11% 11% (7%) 15% 11% (20%)
3,000 2,000 1,663 2,435 1,227 2,295 2,500 884 1,000 2,000 1,777
1,500 - 902 1,000 537 (1,000) (677) 500
- (2,000) (1,693) 2016 2017 2018 9M18 9M19 2016 2017 2018 9M18 9M19 Notes: (1) YoY decline in 9M19 EBITDA mainly due to one-off items such as penalties, cost overruns and other items related to project completion delays. This one-off items are part of new management’s efforts to clean up, and management is 22 confident that the nature of this item is one-off, exhaustive and prudent Key updates – Meikarta
Significant construction progress since rights issue Marketing sales have started to pick up
40.0% IDR mn / sqm(1) 7.9 8.5 8.4 7.8 7.7 7.8 7.8 7.6 7.7 IDR bn Units 35% 35.0% 60.0 180 54.3 51.5 51.2 160 30.0% 28% 50.0 156 140 145 25.0% 141 40.0 120
20.0% 32.2 100 30.0 26.9 14% 92 15.0% 80
11% 73 20.0 60 10.0% 15.4 7% 11.3 10.6 40 5% 10.0 42 5.0% 20 25 1.6 23 - - 8 - Aug-18 Dec-18 Mar-19 Jun-19 Sep-19 Nov-19 Jan Feb Mar Apr May Jun Jul Aug Sep 2019 2019 2019 2019 2019 2019 2019 2019 2019 Sales Value (LHS) Sales Volume (RHS) . 20 of 28 towers in District 1 were topped off by YE2019 . 3Q2019 marketing sales have picked up supported . All 28 towers are expected to be topped off by Feb 2020 by positive construction progress
Notes: (1) Apartment units only, excludes lofts 23 Key updates – Puri Mall
LPKR and LMIRT have agreed to an extension of the long stop date of the transaction 1 to June 30, 2020
Puri Mall Strata process is currently pending the below: • Regulatory body approval 2 • Governor’s approval • Administrative process to obtain the legalization of segregation deed and registration of title
Once Strata is issued, LMIRT and LPKR will start the completion process, 3 which involves processes including SGX clearance, fund raising, and unitholder extraordinary general meeting,
4 Transaction to be completed in 1H 2020
24 Key updates – Rental payment to REITs
Net rental payment from LPKR to REITs(1) 1,200 IDR bn
1,005 1,000 946 947
839 844 808 800 778
590 600 580
400 329
221 203 198 200 175 135
- 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 . Expected reduction in net rental payments from 2022 onwards as certain lease rental agreements mature . There is a portion that is reflective of exchange rate changes between SGD and IDR . The annual changes are linked to Sg CPI changes and Siloam revenues
Notes: (1) Estimates above are subject to change and based off of exchange rates and Sg CPI and will change over time 25 Company Structure as of 31 Dec 2019 LEGEND Lippo Group Public <5%
Subsidiaries 52.7% 47.3%
PT Lippo Karawaci Tbk Operating Divisions (IDX : LPKR)
Pillar 1 Pillar 2 Pillar 3 Land Banking & Development Real Estate Management & Services Investment & Fund Management
PT Siloam International First Real Estate 51.1% 4.2% LPKR Projects Hospitals Tbk Investment Trust (IDX : SILO) (SGX: AW9U)
PT Gowa Makassar 62.7% 30.9% Lippo Malls Indonesia Tourism Development Tbk Retail Malls Retail Trust (IDX : GMTD) (SGX: D5IU)
PT Lippo Cikarang Tbk 81.0% Hotels Fund Management (IDX : LPCK)
49.7%
PT Mahkota Sentosa Others Utama (“Meikarta”) 26 2020 commitments summary
1 Disposal of Puri Mall to LMIRT
2 Disposal of IDR 2tn of non-core assets
3 Finalize construction of LPKR projects
4 Achieve IDR 2.5tn of marketing sales
5 No increase in consolidated leverage
27