1 - Jababeka

PT Jababeka Tbk
Investor Presentation
UBS Indonesia Conference
March 7-9, 2016
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
September 30 2015 Revenue Breakdown (%)
(Rp 2,283 billion)
PT Jababeka Tbk
Real Estate
Industrial
Power
Residential
Infrastructure
Commercial




Infrastructure
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 industrybased 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
Large and strategically located land bank of 3,169 hectares as of 30
September 2015
Vision: To Create Modern Self Sustained Cities in Every
Province in Indonesia and Provide Jobs for Better Life
Infrastructure
& Port, 12%
Real Estate &
Others, 38%
Power
Plant, 50%
September 30 2015 Gross Profit Breakdown (%)
(Rp 992 billion)
Infrastructure
& Port, 12%
Power
Plant, 17%
Real Estate &
Others, 71%
…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
#1
Frontier Consulting Group Award 2014
#1 Corporate Image Industrial Estate
Ministry of Industry - 2013
Best infrastructure & facilities
among industrial developers
2001
1996
1994
1989
Jababeka Group
established and
started
development of
the industrial
estate
IPO on
Jakarta and
Surabaya
Stock
Exchange
Acquisition of
Menara Batavia in
Jakarta CBD
Inauguration of
Education Park,
including
President
University
Investor Magazine - 2012
Top 10 Best performing
listed companies and Best
listed company in
property
2011
2010
2003
Commenced
development of
Jababeka CBD
Cikarang Dry
Port begins
operations
2012
Acquisition
of 1,500 ha
land in
Tajung
Lesung,
Banten
Bekasi
Power Plant
commenced
operations
Entered into a JV
with Sembcorp
to develop
Kendal Industrial
Park in Central
Java and
commenced
land acquisition
Acquisition of 1,000
ha industrial land in
Cilegon, Banten (fully
divested in 2013)
2
Sizeable land bank in strategic locations with upside potential
Kota Jababeka Cikarang
Master plan: 5,600 hectares
35km east of Jakarta
Land Bank: 1,219ha(1)
Karawang
Tanjung Lesung
Master plan: 1,545 hectares
170km southwest of Jakarta
Land Bank: 1,544ha(1)
**NEW**
Kendal, Central Java
Master plan: 2,700 hectares
450km east of Jakarta
Land Bank: 433ha(1)
Note:
1
Land bank as at 30 September 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
Future Toll Road
Tajung
Priok Port
SoekarnoHatta
International
Airport
Heavy industries
& Petrochemicals
DKI
JAKARTA
Tangerang
Bekasi
(in km)
Distance from
Kota Jababeka
Jakarta CBD
35
Seaport
55
Airport
65
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 Plastics
6%
4%
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
D’Java
Residence
Commercial
High-rise residence
Tropikana
Garden
Simprug
Garden
Elvis Tower
Sentra Niaga
Square
Senior housing
Senior Living @
D’Khayangan
Simprug Plaza
Mixed-use superblock developments within Kota Jababeka
Partnered with Plaza Indonesia to develop “MAYFAIR Estate & Park Land”
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
2
Enhancing Kota Jababeka's value proposition: Bekasi Power Plant
Jababeka is the only industrial estate developer in Indonesia with its own power plant located within its estate
Integrated Power Generation & Distribution Process
1
Key highlights of operations at Bekasi Power Plant
100% output to PLN
2
3
Buy back from PLN
(+16% margin)

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
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
Gross profit margin (%)
1,400
1,200
1,267
1,062
1,135
2013
2014
1,000
September 2015
800
600
400
82
200
155
Revenue
Gross Profit
169
16%
14%
12%
10%
8%
6%
4%
2%
0%
15%
12%
8%
2013
2014
September 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
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
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
Operation 24/7
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
destination with an international port code, IDJBK

Adjacent to the main railway line that runs from west Java to
east Java for domestic distribution

Upside potential from direct rail connection to Tanjung Priok
port

The dry port can also service occupants outside of Kota
Jababeka
Strong momentum in CDP operations
Revenues (IDR billion)
100
90
80
70
60
50
40
30
20
10
-
89
78
62
9
2011
Selected customer profile at Cikarang Dry Port
15
2012
2013
2014
September
2015
Minimal capex needs required as CDP has throughput capacity of up to
250k TEU
Throughput (TEU)
40,000
37,507
36,465
2014
September
2015
35,000
30,000
25,808
25,000
20,000
15,000
10,000
5,000
5,995
3,334
2011
2012
2013
…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…
Recurring revenue (IDR billion)
Total Revenue & Breakdown
2014
Recurring(1)
43%
Real Estate(2)
57%
2013
IDR 2,799 billion
2012
1,800
1,600
1,400
1,200
1,000
800
600
400
200
-
1,592
1,408
1,349
183
240
2011
2012
2013
2014
September
2015
IDR 2,740 billion
Recurring EBITDA (IDR billion)
2011
IDR 1,401 billion
16%
84%
IDR 1,148 billion
As per September 2015:
IDR 2,283 billion revenue
62% recurring
400
350
300
250
200
150
100
50
0
344
295
210
40
2011
64
2012
2013
2014
September
2015
…based on USD pricing terms, further enhancing stability and visibility of cash flows for Jababeka 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)
Township
Location
Total licensed area
(Dec 31, 2014)
Acquired land bank
(September 30, 2015)
Kota Jababeka
Cikarang
3,628
1,219
Kendal Industrial Park
Central Java
2,200
433
Tanjung Lesung
Banten
1,977
1,544
7,805
3,196
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
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
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 (433 ha acquired as of 30 September, 2015)
Distance from Kendal
Industrial Park
Tanjung Emas Int'l Seaport
25 km
Ahmad Yani Int'l Airport
20 km
Semarang City (provincial capital)
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
Average industrial land
prices (USD/sqm)
Why Central Java?
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
Monthly minimum wage
(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

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

Existing infrastructure includes access roads, a water treatment
plant, wastewater treatment plant, electricity supply and
telecommunication links

Visitors currently have access to ~ 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
 Included in the Master Plan for Acceleration and Expansion of Indonesian
Economic Development (MP3EI)
 Infrastructure development pipeline which will improve access for
Tanjung Lesung:
–
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….
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
–
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
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
2,283
2,500
1,390
2,000
1,500
500
-
1,207
800
1,148
965
1,161
183
240
2011
2012
Recurring revenue
1,349
1,592
1,408
2013
2014
400
20%
200
10%
0%
2011
935
60%
450
50%
400
350
37%
40%
2012
2013
2014
Sep-15
Gross profit margin
Net income (IDR billion)
1,019
741
40%
41%
40%
30%
509
394
380
326
300
250
200
400
20%
200
10%
0
0%
2011
43%
50%
30%
Gross profit
44%
600
45%
43%
614
Real estate & other revenue
1,200
800
860
600
Sep-15
1,130
1,000
60%
992
0
EBITDA (IDR billion) and EBITDA margin (%)
53%
70%
1,252
53%
1,000
876
1,401
1,000
61%
1,200
1,171
2012
2013
EBITDA
2014
Sep-15
150
101 1
100
71
2
50
0
2011
2012
2013
2014
Sep-15
EBITDA margin
Notes:
1 FY2013 includes unrealized foreign exchange loss (non cash) of approximately IDR 421 billion
2 Sep-15 includes unrealized foreign exchange loss (non cash) of approximately IDR 376 billion
21
6
Robust balance sheet position…
Assets and cash (IDR billion)
Debt, Equity (IDR billion) and Debt/Equity
12,000
5,000
9,587
10,000
8,255
3,000
7,660
7,911
8,729
6,836
5,470
242
0
2011
2012
Cash and cash equivalents
595
595
858
2013
2014
Sep-15
3.8
3.1
0.58
0.61
0.51
2,572
0.43
3,720
2,705
0.90
0.80
0.70
0.60
0.50
2,046
0.40
1,497
0.30
1,000
0.20
500
0.10
0
0.00
2011
2012
Total debt
2013
Total equity
2014
Sep-15
Debt/Equity
Net debt/EBITDA (x)
4.5
3.5
0.79
3,502
Total assets (including cash)
EBITDA/Interest expense (x)1
4.0
2,000
1,500
2,000
128
2,500
4,186
3,975
3,500
5,597
4,000
4,500
4,000
7,078
8,000
6,000
8,505
4,715
4,662
3.0
3.8
3.2
3.2
3.0
2.7
2.4
2.5
2.3 2
1.9
2.0
1.9
2.5
1.5
2.0
1.5
1.0
1.0
0.5
0.5
0.0
0.0
2011
2012
2013
Notes:
1 Includes capitalized interest + Hedging Fees
2 Assumes EBITDA LTM as per September 30 2015
2014
Sep-15
2011
2012
2013
2014
Sep-15
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)
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
6.0
4.7
6.2
6.0
5.6
5.0
4.9
5.1
5.2
200
2.0
100
0.0
398
400
300
4.0
463
323
400
156
128
133
93
251
76
175
230
270
307
267
2012
2013
2014
YTD Sept
2015
0
2009 2010 2011 2012 2013 2014 2015F 2016F 2017F
2011
FDI
Domestic direct investment
Source: BKPM
Sizeable domestic market size — world's 4th largest population
Greater Jakarta average industrial land prices (USD/sqm)
400
1200
300
200
100
310
240
195
174
158
149
143
127
113
93
88
83
82
81
74
73
69
66
63
62
61
50
48
48
46
46
45
45
1400
500
1,341
1,225
Source: Statistics Indonesia, EIU
200
159
174
168
2014
Q3
2015
160
120
114
118
2011
2012
81
80
56
62
2008
2009
40
China
India
US
Indonesia
Brazil
Pakistan
Nigeria
Bangladesh
Russia
Japan
Mexico
Philippines
Vietnam
Ethiopia
Germany
Egypt
Iran
Turkey
Thailand
Congo
France
UK
Italy
S.Africa
Korea
Myanmar
Colombia
Spain
Ukraine
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
www.jababeka.com