Lippo Malls Indonesia Retail Trust Annual General Meeting 18 April 2018
Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. These forward-looking statements reflect our current views with respect to future events and financial performance and are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in the Indonesian retail industry including those factors which may affect our ability to attract and retain suitable tenants, our ability to manage our operations, reduced demand for retail spaces, our ability to successfully complete and integrate potential acquisitions, liability for damages on our property portfolios, the success of the retail malls and retail spaces we currently own, withdrawal of tax incentives, political instability, and legal restrictions on raising capital or acquiring real property in Indonesia. In addition to the foregoing factors, a description of certain other risks and uncertainties which could cause actual results to differ materially can be found in the section captioned "Risk Factors" in our preliminary prospectus lodged with the Monetary Authority of Singapore on 19 October 2007. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. We undertake no obligation to COPY FOR ASTRA INTERNATIONAL publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. 1
Portfolio Overview Key Highlights in FY 2017 Financial Highlights Growth Outlook 2
A Snapshot COPY FOR ASTRA INTERNATIONAL 3
A Grow ing Portfolio Portfolio Valuation (Rp‘billion) 19,475 CAGR 18,124 17,764 17,257 13.2% 13,769 13,574 10,667 7,636 7,077 6,403 COPY FOR ASTRA INTERNATIONAL 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Number of Properties 30 27 26 24 23 23 17 15 15 15 4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 4
Strategically Located Portfolio COPY FOR ASTRA INTERNATIONAL 23 Retail Malls 7 Retail Spaces Retail Malls 5 Retail Spaces
Well-diversified Portfolio In Jakarta In Jakarta 8 Properties Outside Jakarta Outside Jakarta 22 Properties Breakdow n by Valuation Breakdow n by NLA COPY FOR ASTRA INTERNATIONAL 41% 43% 371,001 sqm Rp8,463.2 59% 57% billion 539,581 sqm Rp11,012.3 billion 6 6
Land Title Profile HGB/Strata Title HGB/Strata Title 20 Properties BOT Title BOT Title 10 Properties Breakdow n by Valuation Breakdow n by NLA COPY FOR ASTRA INTERNATIONAL 35% Rp6,815.1 45% billion 55% 65% 408,693 sqm 501,889 sqm Rp12,660.3 billion 7 7
Occupancy Rate and Lease Profile High Occupancy Rate 95.0% 94.7% 94.3% 94.0% 93.7% 89.7% Portfolio Average 85.4% 85.3% 84.8% 84.7% Industry Average (Cushman & Wakefield) COPY FOR ASTRA INTERNATIONAL FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Long Lease Profile Weighted Average Lease Expiry (by 38% NLA) as at 31 December 2017: 4.13 years Balanced mix of long-term anchor 20% leases and shorter-term leases for non- 15% anchor tenants provide both stability 10% 5% and growth potential Average rental reversion of 5.6% 2018 2019 2020 2021 >2022 8
Diversified Quality Tenants Trade Sector Breakdow n by Trade Sector Breakdow n by Gross Revenue* Net Lettable Area Casual Leasing Department Store 15% All Other Sectors 20% 23% All Other Sectors 31% COPY FOR ASTRA INTERNATIONAL F&B / Food Court Leisure & 15% 2017 2017 Entertainment 4% Supermarket / Hypermarket Department Store 19% 9% Leisure & Entertainment Fashion 13% 9% Supermarket / Hypermarket Fashion F&B / Food Court Parking 10% 11% 10% 11% * Exclude other rental income and income from rental of mechanical, electrical and mall operating equipment 9
Related-Party Tenants Contribution of Related-Party Tenants to Gross Revenue Income derived from Related Party Tenants contributed Master Lease - approximately 33% of the FY Retail Spaces 6.3% 2017 Gross Revenue Master Lease - Kemang 11.1% Master Lease - Other related party tenants Kuta 2.4% include Nobu Bank, 4G Bolt, COPY FOR ASTRA INTERNATIONAL Maxx Kitchen, UPH, Maxx Matahari Coffee, Big TV & Books & 4.5% Hypermart & Foodmart Beyond 2.7% Cinemaxx 0.4% Timezone 0.4% Master Lease for Retail Non related party Sky Parking Spaces expired in Nov 2017; tenants 4.3% 67.0% area is currently leased to Other related party multiple tenants with tenants 1.0% occupancy rate at 88.6% 10
Portfolio Overview Key Highlights in FY 2017 Financial Highlights Growth Outlook 11
Three Acquisitions Kediri Tow n Square Lippo Plaza Kendari COPY FOR ASTRA INTERNATIONAL Lippo Plaza Jogja Purchase Price Purchase Price Purchase Price Rp345.0 billion Rp310.0 billion Rp570.0 billion S$34.4 million S$32.2 million S$57.0 million Valuation Valuation Valuation Rp364.0 billion Rp316.0 billion Rp599.0 billion Net Lettable Area Net Lettable Area Net Lettable Area 16,840 sqm 20,146 sqm 23,023 sqm Occupancy Occupancy Occupancy 99.6% 99.4% 98.6% 12
Key Operational Highlights Completed enhancement works at Lippo Plaza Ekalokasari Bogor with occupancy improving to 86.9% as at 31 December 2017, compared to 71.3% as at 31 December 2016 Transferred adjoining retail wing extension of Plaza Medan Fair to LMIR Trust, increasing total mall NLA by 16.8% to 64,303 sqm Completed additions and alterations works at Istana Plaza COPY FOR ASTRA INTERNATIONAL Extended strata titles under Java Supermall Units for another 20 years to 24 September 2037 Extended strata titles under Mall WTC Matahari for another 20 years to 8 April 2038 Entered into new lease agreements for the seven retail spaces 13
Portfolio Overview Key Highlights of FY 2017 Financial Highlights Growth Outlook 14
Continued Grow th in Revenue and NPI Gross Revenue (S$’000) 5.0% 8.7% 26.3% 197,376 188,066 173,004 136,985 COPY FOR ASTRA INTERNATIONAL FY 2014 FY 2015 FY 2016 FY 2017 Net Property Income (S$’000) 7.2% 8.4% 25.8% 184,251 171,860 158,565 126,007 FY 2014 FY 2015 FY 2016 FY 2017 15
Steady Grow th in Distribution Distributable Income to Unitholders (S$’000) 1.6% 11.6% 25.8% 96,960 95,468 85,553 68,014 COPY FOR ASTRA INTERNATIONAL FY 2014 FY 2015 FY 2016 FY 2017 DPU (Singapore Cents) 0.9% 10.0% Based on closing 12.3% price of S$0.40 as at 29 December 2017, annualised distribution yield 3.44 was 8.6% 3.41 3.10 2.76 FY 2014 FY 2015 FY 2016 FY 2017 16
Healthy Balance Sheet and Gearing Balance Sheet (S$’million) 2,063.9 2,065.2 2,017.5 1,987.7 140.0 260.0 Perpetuals 1,292.7 1,387.5 1,274.5 1,108.9 3 Equity Debt 5 1 695.0 695.0 COPY FOR ASTRA INTERNATIONAL 650.7 630.0 4 1 6 7 3 2014 2015 2016 2017 2 7 8 Gearing Gearing is well below the regulatory 35.0% 33.7% gearing limit of 45% 31.5% 31.2% 2014 2015 2016 2017 17
Debt Maturity Profile Fixed Rate Debt Ratio Weighted Average Maturity Weighted Average Interest Interest Cover of Debt Rate Per Annum 47.5% 2.13 years 4.7% 6.0 times As at 31 December 2017 300 4 250 3 100 75 200 5 150 1 5 90 COPY FOR ASTRA INTERNATIONAL 6 2 4 1 100 175 175 6 7 3 50 2 80 7 8 0 2018 2020 2021 Revolving Credit Term Loans Bonds Notes: 1 S$80 million 1.80% + SOR revolving credit facility 2 S$100 million 4.50% bond due 23 November 2018 3 S$90 million 3.00% + SOR term loan due 15 December 2018 4 S$75 million 4.10% bond due 22 June 2020 5 S$175 million 2.95% + SOR term loan due 25 August 2020 6 S$175 million 3.15% + SOR term loan due 25 August 2021 Perpetual: S$140 million 7.0% Subordinated Perpetual Securities was issued on 27 September 2016 Perpetual: S$120 million 6.6% Subordinated Perpetual Securities was issued on 19 June 2017 18
Portfolio Overview Key Highlights in FY 2017 Financial Highlights Growth Outlook 19
Attractive Indonesian Retail Outlook Strong Middle- Income Growth COPY FOR ASTRA INTERNATIONAL Potential for rents to catch-up to that of other markets in the long term 20
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