PT Lippo po Ka Karawaci ci Tbk 1H19 9 Results ults Presenta sentati tion on Septemb mber er 2019
Content nts Shareholder structure 03 Business Model 04 -05 Recent Developments 06 -12 1H19 Financial Data 13 - 31 Subsidiaries 32 - 48 Turnaround Initiatives 49 - 51 Meikarta 52 - 55 Corporate Structure, Board & Management 56 – 58 Appendix 59 - 70
Shareho reholde der r Struct cture ure As of 30 June 2019 As of 31 Dec 2018 Change No. of No. of Description No. of Shares % No. of Shares % YTD (%) No. Investors Investors I. Domestic 100 17,943,046,650 77.8% -2.5% Corporation 102 17,500,587,565 75.8% Individual 9,880 1,469,736,239 6.4% 8,503 1,163,018,443 5.0% 26.4% Insurance 24 760,312,500 3.3% 17 780,351,000 3.4% -2.6% 31 270,081,330 1.2% -20.9% Mutual Fund 29 213,504,420 0.9% Pension Fund 26 43,387,040 0.2% 22 16,514,340 0.1% 162.7% 2 175,000 0.0% 3728.1% Foundation 3 6,699,200 0.0% Banks 6 625,378 0.0% 6 625,378 0.0% 0.0% 33 526,776 0.0% 0.0% Employees 33 526,776 0.0% Cooperative 2 460,000 0.0% 2 460,000 0.0% 0.0% Sub Total 10,105 19,995,839,118 86.6% 8,716 20,174,798,917 87.4% -0.9% II. International Institutional 259 3,044,208,821 13.2% 256 2,878,854,078 12.5% 5.7% 54 24,036,624 0.1% 56.6% Retail 63 37,641,680 0.2% Sub Total 322 3,081,850,501 13.4% 310 2,902,890,702 12.6% 6.2% Total 10,427 23,077,689,619 100.0% 9,026 23,077,689,619 100.0% 0.0% 3
One of Indonesia’s largest integrated real estate developers One of the largest diversified publicly Market leader in property development, listed property company in Indonesia by total lifestyle malls, and healthcare in Indonesia assets and revenue Ongoing development of 6 projects (2) with GFA of Total assets as of 1H2019: US$3,722m approximately 297K sqm LTM revenue: US$776m Manage 51 malls with GFA of 3.4 million sqm Market capitalization: US$1,267m (1) Network of 37 hospitals with 3,660 beds Largest diversified land bank with development rights of over 8,000 Nationwide platform with presence ha across 36 cities in the country c. 1,467 ha available across Indonesia, providing more than 15 years of development pipeline Recapitalized capital structure Integrated business model with ability to with one of the lowest net debt to recycle capital. equity of 29% vs. peers (3) Sale of Malls and Hospitals to REIT provides capital to finance expansion Notes: IDRUSD of 14,212 used throughout unless otherwise stated (1) Bloomberg as of 30/8/2019 (2) Projects directly owned by LPKR (3) Peers include Pakuwon Jati, Bumi Serpong Damai, Ciputra Development, Summarecon Agung, Puradelta Lestari; Peer 4 average net debt to equity of 21.9%
Refocus used d strateg egy: y: Building ilding on our core streng ngths ths Urban n Housing ing Lifes estyle tyle Malls Healthc thcare are Expan pand our Urban n Homes es produc uct to Currently the leader er in Indon ones esian ian Maintain intain marke ket leader ership ip in lif ifes estyl yle e cater to the rising mass affluent healt lthca care e with network of 37 malls ls , capitalising on Indonesia’s segment, capitalising on urbanization hospitals strong consumption themes trend and rapid increase in home ownership Focus on clinica inical l qualit lity and patient ient Proactive leasing strategies and care improved execution to driv ive e better er Our large ge and low w cost st land ndbank ank asset et yield lds uniquely positions us to capitalise on this opportunity Returns urns and cash flow ow oriented ented approach to hospital expansion Actively review portfolio to optimise Leverage on our integrated ecosystem returns through efficient asset et to create value ue-added ed mixed xed-us use recycli ycling ng strategies egies developments elopments Highly ly attractiv ive e indus ustry fueled by supportive Indonesia demographics Use e tech chno nology logy and innov ovation ion to shorten time-to-market and improve cash flow cycle Strong ong exec ecutio ion and cor orpor orate e gover ernance ance Disci sciplined lined cap apital ital managem agement 5
Up Updat ates to fundin ding programme amme announc unced d in March 2019 Announced initiatives Status US$788m from rights issuance completed in July 2019 ┼ US$730m to be raised from rights issuance Investment by anchor investors for over US$230m Strong shareholder response to rights issuance indicating renewed confidence in LPKR Completed in April 2019 ┼ US$20m to be raised from sale of Myanmar healthcare joint ventures Bond tender completed in March 2019 - Total of US$8.67m – US$150m to be used for bond tender offer tendered US$75m bond repayment completed in Aug 2019 – US$125m to be used for repayment of other existing indebtedness due within next 2 years US$50m UBS-DB syndicated loan repayment completed in Mar 2019 Other bank loans paid down in 1H19 LPCK rights issuance completed in July 2019 - US$187.7m – US$200m to be used for investment in Lippo Cikarang (“LPCK”) / invested Meikarta Increased liquidity buffer to US$330m – US$315m to be used for liquidity buffer and working capital till 2020 Increased working capital to US$104m US$150m to be used for investment in existing pipeline projects – US$100m to be used for investment in existing pipeline projects Projects restarted Delay in the regulatory strata tilting process ┼ US$260m to be raised from sale of retail mall components of Lippo Mall Puri Extension of the long-stop date for completion of sale of Puri – US$60m to be used for related transaction expenses, including rental Mall to 30 June 2020 support for Puri transaction – US$60m to be used for LPKR to subscribe to its pro-rata stake in potential equity financing by LMIRT 6
Recent operatio tional nal highlig hlights hts New w organiz anizatio ational al structu ture e at proj ojec ect level el • Relocation of senior project management nearer to project sites • Allows for faster decision making, improved communication and accountability • Increased empowerment of project staff to make decision • Simplifies financial authority system • Significant efficiencies in project team headcount Com omple letion tion of first st round d of cost st ratio ionali alization tion resu sult lting ing in approximat imately ely Rp Rp 40 billio lion of annual alize ized d savi vings Ram ampin ing up construc tructio ion at Mille leniu ium Villag llage and d Holla land d Villag llage Jak akar arta ta • Completion of Millenium Village expected to be ahead of target schedule (target completion was 4Q21) • Completion of Holland Village expected to be ahead of target schedule (target completion was 4Q21) Increase ased d oper eratio ional al effic icie iency in malls lls • Regionalizing back office functions (e.g. finance and accounting) of the malls to save costs • Adjusted shifts of security officers to be aligned with higher traffic times Launch of Lippo o Malls lls loyalt alty car ard app • Soft launch in early 2019 • One of the fastest engagement loyalty cards approximately 50K members (as of August 2019) within 6 months • Largest mall-implemented loyalty card in Indonesia allowing visitors to earn points for shopping across the 51 malls in more than 23 cities across the country 7
Accompl plishme ishment nts s since March 12 announc unceme ment nt Bond d Tender er Offer er Completed ed and US$8.6 8.67 7 millio ion of 2022 and 2026 bonds ds were tendered. ered. Ad Advan ance ced d subsc scripti ption on of US$280 0 million ion receiv ived ed befor ore e the end of 1Q19 The The sal sale of of the the Myanma nmar Hosp ospit itals stak stake was com compl plet eted ed in in April ril, genera generati ting ng US US$ 19.5 million 19 ion Rights Rights Iss ssue ue su success ccessful fully com completed (Jul (July 2019) rai aisi sing ng Rp Rp11 11.2 trillion on ($78 787.5 million ion) with strong ng minor ority ty partici icipat ation ion. S&P Global al Ratin ings gs raised LPKR to to B- from CCC+, C+, with a ‘Stable’ outlook ook Fitch ch Rating tings upgraded ded the Compa pany to to B- from CCC+ CC+ Redeemed emed our $75 75 million on 2020 2020 Corporat ate Bond on on August ust 5, 2019. YTD 2019, the Compan mpany has paid off major or local al bank loans 8
Commitment itment to deliver er existi ting ng key project cts Milleni nium um Village ge – Ahead of target eted ed constr structi uction n schedul edule Target Launched 2014 4Q 2021 completion Estimated Total construction residential 452 US$52m costs to units completion % Sold as per 73% Total GFA 100,716 sqm 30 June 2019 December 18 June 19 Embarca cader dero – On Schedul dule Target Launched 2014 4Q 2020 completion Estimated Total construction residential 776 US$49m costs to units completion % Sold as per Total GFA 67,724 sqm 64% 30 June 2019 December 18 June 19 9
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