1 - Jababeka

PT Jababeka Tbk
Investor Presentation
Investor Presentation
October 2015
Leading township developer & infrastructure powerhouse
PT Jababeka Tbk ("KIJA") is a leading township developer with an established track record in industry‐based townships supported by residential & commercial components...
Jababeka ("KIJA") overview
Business segments
June 30 2015 Revenue Breakdown (%)
(Rp 1,475 billion)
PT Jababeka Tbk
Real Estate




Infrastructure
Industrial
Power
Residential
Infrastructure
Commercial
Dry Port
Established in 1989 and became the first publicly listed industrial estate developer in Indonesia in 1994
Kota Jababeka, KIJA's flagship development, is a mature industry‐
based integrated township in Cikarang with on‐site power plant and dry port Pipeline projects: Kendal Industrial Park in Central Java and tourism‐based township in Tanjung Lesung, Banten
L
Large and strategically located land bank
d t t i ll l t d l d b k of 3,169 hectares as of 30 f 3 169 h t
f 30
Jun 2015
Infrastructure & Port, 12%
Real Estate & Others; 38%
Power Plant; 50%
June 30 2015 Gross Profit Breakdown (%)
(Rp 616 billion)
Infrastructure Infrastructure
& Port; 13%
Power Plant; 18%
Real Estate & Real
Estate &
Others; 69%
Vision: To Create Modern Self Sustained Cities in Every Province in Indonesia and Provide Jobs for Better Life
f
f
…with world class infrastructure to support its developments
1
Established track record in large‐scale industrial estate + infrastructure
More than 25 years track record in industrial township development
Selected awards
#1
2013
Supply Chain Asia Awards 2014 Asia Logistics Centre/Park of the Year (Cikarang Dry Port)
Fortune Indonesia ‐ 2013 Fortune Indonesia ‐ 2012
#10 in 50 Fastest Growing Best Company award
Companies in Indonesia
Investor Magazine ‐ 2012
Top 10 Best performing listed companies and Best listed company in property
2011
2012
Bekasi Bekasi
Power Plant commenced operations
Entered into a JV Acquisition with Sembcorp of 1,500 ha to develop 2010
Ministry of Industry ‐ 2013 Kendal Industrial land in Frontier Consulting Group Award 2014 Cikarang Dry Best infrastructure & facilities Park in Central Tajung #1 Corporate Image Industrial Estate 2003
Port begins among industrial developers
Java and Lesung, operations
commenced
commenced Banten
Commenced 2001
land acquisition
development of 1996
Inauguration of Jababeka CBD
1994
Education Park, Acquisition of including 1989
Menara Batavia in President
President IPO on
IPO on Jakarta CBD
University
Jakarta and Jababeka Group Surabaya established and Acquisition of 1,000 Stock started ha industrial land in Exchange
development of Cilegon, Banten (fully the industrial divested in 2013)
divested in 2013) estate #1
2
Sizeable land bank in strategic locations with upside potential
Kota Jababeka Cikarang
Master plan 5 600 hectares
Master plan: 5,600 hectares
35km east of Jakarta
Land Bank: 1,219ha(1)
Karawang
Tanjung Lesung
M t
Master plan: 1,545 hectares
l 1 545 h t
170km southwest of Jakarta
Land Bank: 1,544ha(1)
**NEW**
NEW
Kendal, Central Java
Master plan: 2,700 hectares
450km east of Jakarta
Land Bank: 406ha(1)
Note:
1
Land bank as at 30 June 2015
3
Key credit strengths
1
Leading industry‐based integrated township developer in Indonesia
2
The ONLY industrial developer with on‐site power and dry port
3
Stable, USD‐denominated recurring income from infrastructure operations
4
Diversified land bank and projects
5
Clear strategic focus over different time frames 6
Robust operating and financial performance 7
Experienced management team
8
Beneficiary of favourable macro and sector fundamentals
4
1
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…
Toll Road
Toll Road
Future Toll Road
Tajung Tajung
Priok Port
Soekarno‐
Soekarno
Hatta International Airport
Heavy industries & Petrochemicals Tangerang
& Petrochemicals
DKI DKI
JAKARTA
Bekasi
(in km)
Distance from Kota Jababeka
J k t CBD
Jakarta CBD
35
Seaport
55
Airport
65
South South
Tangerang
Automotive, Consumer, Electronics & other Light to medium industries
Kota Jababeka
1
Strategically located in Cikarang area, the most established industrial estate zone in Greater Jakarta
2
Close to central Jakarta, sea‐port, airport and accessible by both toll and railroads
3
Mature township with a well‐established talent/labor pool supported by complementary facilities (residential, commercial, hospitality, etc)
4
Superior infrastructure facilities which serve to enhance Kota Jababeka's competitive positioning for customers
…and is home to over 1,600 local and multinational customers from over 20 countries 5
1
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 of occupants across sectors (breakdown by number of occupants) – As of 31 Dec 2014
Electronics
12%
Others
44%
Portfolio of high quality customers
Customer Goods
7%
Machinery
7%
Automotive
6%
Textile
2%
Building
3%
Chemicals
6%
Metal Fabrication
4%
Foods
4%
Plastics
6%
6
1
Kota Jababeka – Continued build‐out of complementary facilities
Kota Jababeka has successfully achieved a critical mass of occupants which provides an opportunity to continue introducing complementary services and infrastructure to enhance the township's value proposition Residential
Housing clusters
The Veranda
The Veranda
D’J
D’Java Residence
Commercial
High‐rise residence
Tropikana Tropikana
Garden
Simprug Si
Garden
Elvis Tower
Elvis Tower
Sentra Niaga Sentra
Niaga
Square
Senior housing
SSenior Living @ i Li i @
D’Khayangan
Simprug Plaza
Mixed‐use superblock developments within Kota Jababeka
Partnered with Plaza Indonesia to develop superblocks
70%
Phase 1 Phase 2
30%


30%
Mixed use superblock on a 12‐ha site Groundbreaking happened in June 2015; first stage of Phase 1 targeted completion in 2018

70%
Phase 2 to be developed on a 4‐ha site
7
Enhancing Kota Jababeka's value proposition: Bekasi Power Plant
2
Jababeka is the only industrial estate developer in Indonesia with its own power plant located within its estate
Integrated Power Generation & Distribution Process
1
100% output to PLN
Buy back from PLN ( 16%
(+16% margin)
i )
2
3
Key highlights of operations at Bekasi Power Plant

130MW gas fired combined cycle plant

20 year 100% off‐take agreement from Perusahaan Listrik Negara (“PLN”)
PLN
–
–
–
–
–
Direct sale to factories
(+ margin)
Rate per KWH: ~US$11 cents
Rate
per KWH: ~US$11 cents
Average gas cost / MMBTU: ~US$10.0
Fuel costs borne by PLN on a pass‐through basis
Fully contracted gas supply
Flexibility to buy back power and resell it at a premium Factories
Bekasi Power Plant's operations have ramped up since opening in 2013 and efficiency continues to improve, leading to higher margins IDR billion
1.500 1.267 15%
2014
1.062 1.000 Gross profit margin (%)
Gross
profit margin (%)
20%
2013
June 2015
734 15%
10%
500 82 155 112 ‐
12%
8%
5%
0%
Revenue
Gross Profit
2013
2014
June 2015
Providing a significant marketing advantage over its competitors as access to reliable electricity supply is one of the primary concerns for industrial clients in Indonesia
8
2
Enhancing Kota Jababeka's value proposition: Cikarang Dry Port
Strategic location in the heart of the largest manufacturing zone along the Bekasi‐Cikampek industrial corridor
JABABEKA
MM 2100
MM 2100
EJIP
62%1
LIPPO
HYUNDAI
SURYA CIPTA
GIIC
KIIC
KIKC
KIM
KBI
International Port Code: IDJBK
Surrounded by 11 Industrial Estates and more than 3,000 manufacturing companies
th 3 000
f t i
i
Notes:
1 Estimated % of total throughput at Tanjung Priok Port originating from this area
9
2
Enhancing Kota Jababeka's value proposition: Cikarang Dry Port
Facilities & services offered at Cikarang Dry Port
Container Yard
Reefer Services
Terminal
Terminal Operation 24/7
Container
Container Freight Station
Bonded Trucking
Rail Freight Service
24/7 Security
Empty Depot
Railway
Office
Gate
CY
CFS
Physical Check
Logistics Park
• Warehouses
• TPP
Reefer
Port:
• Customs
• Quarantine
• Physical Check
• Container Yard
• Reefer Plugs
• CFS
General Warehouse
Special Containers Handling
10
Integrated Customs & Quarantine
Empty Container Depot
Online Tracking & INSW Connected
2
Enhancing Kota Jababeka's value proposition: Cikarang Dry Port
Cikarang Dry Port (CDP) is the first and only integrated customs and service estate in Indonesia…
Overview

In April 2011, CDP became an official port of origin and In
April 2011, CDP became an official port of origin and
destination with an international port code, IDJBK

Adjacent to the main railway line that runs from west Java to east Java for domestic distribution
Strong momentum in CDP operations
Revenues (IDR billion)
100
100 78 80 62 62 60 
Upside potential from direct rail connection to Tanjung Priok port
40 
The dry port can also service occupants outside of Kota Jababeka 20 9 15 ‐
Selected customer profile at Cikarang Dry Port
Selected customer profile at Cikarang Dry Port 2011
2012
2013
2014
June 2015
June 2015
Minimal capex needs required as CDP has throughput capacity of up to 250k TEU
Throughput (TEU)
37.507 40.000 35.000 30.000 25.808 24.622 25.000 20.000
20.000 15.000 10.000 5.000 3.334 5.995 ‐
2011
2012
2013
2014
June 2015
…allowing customers to more efficiently manage their imports and exports and benefit from cost savings
11
3
Sizeable and stable USD‐denominated recurring income base
The provision of these infrastructure services has enabled the progressive build out of a significant recurring revenue base…
T t lR
Total Revenue & Breakdown
& B kd
2014
Recurring(1)
43%
Real Estate(2)
Real Estate
57%
2013
IDR 2,799 billion
2012
2011
IDR 2,740 billion
IDR 1,401 billion
16%
84%
IDR 1,148 billion
As per June 2015:
IDR 1,475 billion revenue
62% recurring
Recurring revenue (IDR billion)
1.800 1.600 1.400 1.200 1 000
1.000 800 600 400 240 183 200 ‐
2011
2012
Recurring EBITDA (IDR billion)
400 350
350 300 250 200 150 64
64 100
100 40 50 0 2011
2012
1.592 1.349 916 2013
2014
June 2015
345 210 2013
206 2014
June 2015
…based on USD pricing terms, further enhancing stability and visibility of cash flows for Jababeka
based on USD pricing terms further enhancing stability and visibility of cash flows for Jababeka and also providing a and also providing a
natural hedge for its USD‐denominated interest expenses
Notes:
1 Recurring revenue/EBITDA includes contribution from power plant, dry port and service & maintenance fees
2 Comprises real estate, golf and other non-infrastructure segments
12
4
Diversified land bank
A geographically diversified land bank allows KIJA to capture different market segments and enhances earnings resilience…
Land bank breakdown by location (in hectares)
y
(
)
Township
Location
Total licensed area (Dec 31, 2014)
Acquired land bank (June 30, 2015)
Kota Jababeka
Cikarang
3,628 1,219
Kendal Industrial Park
Central Java
2,200 406
Tanjung Lesung
Banten
1,977 1,544
7,805 3,169
Total
Kota Jababeka
Kendal Industrial Park
Tanjung Lesung
Established MNCs and domestic companies willing to pay a premium for strategic location and mature township with top notch infrastructure in place
g
More cost‐conscious customers looking for an alternative to Greater Jakarta industrial estates
Tourism, leisure and hospitality focused integrated township to tap into entertainment/leisure spending by rising middle class in Indonesia
…in addition to benefiting from future infrastructure developments across its land bank locations
13
4
Diversified projects: Kendal Industrial Park
Kendal Industrial Park benefits from Sembcorp's expertise in developing and marketing industrial zones across Asia (China, Vietnam, Batam, Bintan, etc)…
Kendal Industrial Park is a JV between KIJA and Sembcorp
Excellent connectivity to major infrastructure in Central Java
K d lP t
Kendal Port
49%
Tanjung Emas
Seaport
51%
Ahmad Yani
Int'l Airport
Semarang
Total planned area: up to 2,700 ha
Phase 1: 860 ha (406 ha acquired as of 30 June, 2015)
Distance from Kendal Distance
from Kendal
Industrial Park
Tanjung Emas Int'l Seaport
25 km
Ahmad Yani Int'l Airport
g y (p
capital)
p )
Semarang City (provincial
20 km
21 km
…and complemented by KIJA's long track record and
experience in Indonesian industrial estate developments and infrastructure operations
14
4
Diversified projects: Kendal Industrial Park
Our Kendal Industrial Park development in Central Java is well‐positioned to benefit from growing demand for relatively low cost industrial estates with good connectivity and competitive labor costs
Affordable land prices relative to Greater Jakarta industrial estates
Averagge industrial land pricees (USD/sqm)
Why Central Java? y
300
224 200
185 174 Karawang
Bogor
Avg. Greater JKT industrial land price: US$175/sqm
159 133 100
0
Bekasi
Tangerang
Serang
Relative low wages
Month
hly minimum wagee (IDR m)
Source: Colliers Indonesia Research 4Q 2014, converted using 1USD =12,245 IDR
3,0
2,0
2,4 2,7
2,8 Surabaya
Bekasi 1,7 1,0
0,0
Semarang
Serang
Source: Colliers Indonesia Research 4Q 2014
Less congested infrastructure

Kendal Industrial Park is situated along the Jakarta‐Semarang‐Surabaya Economic Corridor
g
g
y

Increasing traffic congestion at Tanjung Priok Port in Jakarta has led to growing interest in alternative sites with good connectivity via air and sea

Kendal Industrial Park's location provides access to Tanjung Emas Port in Semarang (25km away), the 3rd largest deep sea port in Indonesia after Tanjung Priok (Jakarta) and Tanjung Perak (Surabaya)

Ahmad Yani International Airport at Semarang is also only 20km away
15
4
Diversified projects: Kendal Industrial Park
Waste water
treatment plant
Vacant site for
potential
infrastructure
16
4
Diversified projects: Tanjung Lesung
Tanjung Lesung overview
Location
~ 170 km southwest of Jakarta in Banten
Concept
Tourism-based integrated township
(hotels, apartments, sailing, diving & beach clubs)
Access
Currently accessible by toll road from Jakarta in
~ 3.5 hours
17
4
Diversified projects: Tanjung Lesung
Strong government support for Tanjung Lesung's development as a tourism zone, particularly in the form of building new toll road access to the area…
Facilities and infrastructure at Tanjung Lesung
Strong government support for development of Tanjung Lesung
 Included in the Master Plan for Acceleration and Expansion of Indonesian 
Existing infrastructure includes access roads, a water treatment plant, wastewater treatment plant, electricity supply and telecommunication links

Visitors currently have access to Visitors
currently have access to ~ 300 rooms spread out over 300 rooms spread out over
two hotels/resorts, a bed and breakfast and several cottages

Other facilities: restaurant and bar, driving range, a swimming pool, a spa, a beach club, a sailing club, school, mosque, residential housing units, and a medical clinic
Economic Development (MP3EI)
 Infrastructure development pipeline which will improve access for T j
Tanjung Lesung:
L
–
New toll road from Serang Timur to Panimbang
Recent events at Tanjung Lesung
“President Joko Widodo targets the development of the Tanjung Lesung special tourism economic area to complete in three years.…. President Widodo said he set the three year deadline in line with construction time of the Serang‐Panimbang toll road. President Widodo said the toll road will be built by the government…. y
g
President Joko Widodo speaking on Tanjung Lesung’s designation as Special Economic Zone for Tourism Indonesia Finance Today
23 Feb 2015
”
…is expected to increase interest from potential investors/partners for the project
18
4
Diversified projects: Tanjung Lesung
Aerial view
Beach at Tanjung Lesung
Aerial view
Villa at Tanjung Lesung
19
5
Clear strategic focus
Jababeka's existing pipeline provides visible opportunities over different time frames

Short Term
Short‐term focus will be to continue developing Kota Jababeka Township:
–
Target fast growing, low‐middle end residential & commercial segment
residential & commercial segment
–
Cater to preference for smaller land plots, standard factory buildings
–
Maintain/further improve operational efficiency at Bekasi Power Plant
–

Development of Kendal Industrial Park in partnership with Sembcorp in central Java

Development of Bekasi Power Plant Phase 2 on t it dj
tt
i ti f ilit
vacant site adjacent to existing facility
Medium Term
Increase utilization rates at Cikarang Dry Port
–

Ongoing discussions with PLN; to commence only upon securing off‐take agreement with PLN similar to existing power plant
Development of Tanjung Lesung tourism‐based township Long Term Vision
 Replicate Kota Jababeka's industry‐based integrated township model throughout Indonesia
 Build out an infrastructure facility portfolio (power, water, ports, etc.) to support these new townships
20
6
Strong financial performance...
Revenue breakdown (IDR billion)
3.000 Gross profit (IDR billion) and Gross profit margin (%)
2,740
2,799
1.400 2 500
2.500 1.390 ‐
1.207 1.000 1,475
1,401
600 559 965 1.161 1.349 1.592 916 183 240 2011
2012
Recurring revenue
800 600 1.019 39%
44%
741 37%
40%
509
509 577 400 200 0 2012
EBITDA
40%
43%
614 616 30%
20%
200 10%
0%
2011
2012
2013
2014
June 2015
June 2015
Gross profit
Gross profit margin
Net income (IDR billion)
1.130 2011
50%
42%
0 1.200 1.000 45%
860 60%
400 2013
2014
June 2015
June 2015
Real estate & other revenue
EBITDA (IDR billion) and EBITDA margin (%)
53%
1 171
1.171 53%
800 1,148
1.000 500 61%
1.200 2.000 1.500 70%
1.252
1.252 2013
2014
EBITDA margin
60% 450 400 50%
350 40% 300 250 30%
200
200 20% 150 100 10%
50 0%
0 June 2015
Notes:
1 FY2013 includes unrealised foreign exchange loss (non cash) of approximately IDR 421 billion
394
394 380 326 249 1
101 2011
2012
2013
2014
June 2015
21
6
Robust balance sheet position…
Assets and cash (IDR billion)
Debt, Equity (IDR billion) and Debt/Equity
10.000 12.000 0,79 10,074
10 000
10.000 8,255
0,61 7,078
8.000 6.000 8.000 8,505
6.000 5,597
4 000
4.000 0,51 0,43 3 502
3.502 3.975 4.000 1.429 2.000 0
0 128 242 2011
2012
Cash and cash equivalents
EBITDA/Interest expense (x)1
4,5 4,0 3,2 3,5 3,1 3,0 2,5 20
2,0 1,5 1,0 0,5 0,0 2011
2012
Notes:
1 Includes capitalized interest
2 Assumes EBITDA LTM as per June 30 2015
595 2.000 2.046 1.497 4.186 2.572 0,80 0,70 0,58 4.662 0,60 4.908 0,50 0,40 3.901 0,30 2.705 0,20 0,10 595 0
0 2013
2014
June 2015
Total assets (including cash)
38
3,8 0,90 0,00
0,00 2011
2012
Total debt
2013
Total equity
2014
June 2015
Debt/Equity
Net debt/EBITDA (x) 3,0 2,7
2,7 38
3,8 3,5 2,4 2,5 2,0 1,9 1,9 1,8 2013
2014
June 2015
2
1,5 1,0 0,5 0,0 ,
2013
2014
June 2015
2011
2012
22
7
Experienced management team
Average of more than 20 years of industrial township development experience
Board of Commissioners
Setyono Djuandi Darmono
Bacelius Ruru
President Commissioner
Vice President Commissioner Commissioner
(Founder)
Independent Commissioner (Founder)
j
Hadi Rahardja
Gan Michael
Ketut Budi Wijaya
Commissioner
Commissioner / Independent Commissioner
Board of Directors
Budianto Liman
Hyanto Wihadhi
Sutedja Sidarta Darmono
Tjahjadi Rahardja
Setiawan Mardjuki
President Director
Director
Director
Director
Director
23
Favorable macro and sector fundamentals
8
Strong real GDP growth outlook (%)
Continued growth in direct investments – both FDI and domestic (IDR trn) 8,0
500
6,4
62
6,2
60
6,0
6,0
463
399
5,6
5,0
4,7
4,9
5,1
5,2
4,0
2,0
400
300
251
200
76
100
0,0
2009
2010
2011
2012
2013
2014
2015F 2016F 2017F
156
323
128
260
93
85
175
230
270
2012
2013
307
174
0
2011
FDI
2014
Domestic direct investment
Source: BKPM
Sizeable domestic market size — world's 4th largest population
Greater Jakarta average industrial land prices (USD/sqm)
300
200
100
310
240
195
174
158
149
143
127
113
1
93
3
88
8
83
3
82
2
81
1
74
4
73
69
66
63
62
61
50
48
48
46
46
45
45
400
1200
1,341
1
1,225
Source: Statistics Indonesia, EIU
1400
500
Q2 2015
200
174
172
2014
Q2
2015
159
160
120
114
118
2011
2012
81
80
56
62
2008
2009
40
China
India
US
Indonesia
Brazil
Paakistan
Nigeria
N
Bangladesh
Russia
Japan
Mexico
M
Philippines
Vietnam
Etthiopia
Germany
Egypt
Iran
TTurkey
Th
hailand
Congo
FFrance
UK
Italy
S.Africa
Korea
Myanmar
Colombia
Spain
Ukraine
U
Tanzania
0
Source: Broker research reports, Bloomberg, UN Population Database, ING Real Estate Research & Strategy, A.T.Kearney, Euromonitor, UN 0
2010
Source: Colliers Indonesia International research
2013
24
Thank You
h k
www.jababeka.com