2025 earnings call today. My name is Agus Arismunandar, Head of Investor Relations, and I'll be your host today.

Presenting our full-year 2025 results will be Pak Fendi Santoso, our Group CFO. During his presentations, you can submit your questions using the chat box features, and then we will answer your questions in the Q&A sessions that follows the presentations.

Pak Fendi, I think you can start the presentations.

Thank you, Pak Agus. Good morning, everyone.

Thank you for joining our earnings call today. I'll be taking you through the financial results 2025 for LPKR.

Let me just go straight jump into the business performance highlight for 2025. Our real real estate revenue on on on our real estate pillar, marketing sales, we're pleased to report that we've reached we've booked at about 5.3 trillions of marketing sales.

This is 85% of what we've targeted to achieve in in in 2025. Slightly below, and this is on the back of a quite a subdued consumer buying power in 2025 that everyone experienced across not only on the property sectors, but all consumer-facing businesses.

Nevertheless, we are still able to find pocket of opportunity for growth and able to sustain our performance, and with focus on, obviously, the the the the the segments of more affordable landed housings in our markets. Revenue for the real estates, we clocked in at about 7.7 trillions, which is about 52% increase from last year in 2024.

This is driven by a very strong handovers across all our landed residentials, high-rise, and commercials. In particular, in our developments in Park Serpong, which we launched late in 2023, we've managed to deliver most of the the marketing sales that we've had then in 2025, and also the handover for Meikarta units in the 2025.

That supported our revenue for basically the the drivers of our growth in revenue in 2025. Whereas EBITDA rose by about 4%, we've recorded a 1.15 trillions of EBITDA.

This is slightly lower than, obviously, the top-line growth because of the drags from the, some of the legacy products that we handed over this years that had a much lower margins compared to the others. In 2025, we've launched a few of our newly premium newly launched premium series innovations.

Belmont Homes, Beverly Homes, and Allegra is one of the few that we've introduced to our customers in 2025. Obviously, we've also continued to innovate on our affordable housing series, including the TreeTop Living, Q Living, Bronze, Quartz Living, which I'm going to show some pictures later on in the next few slides.

On our lifestyle business, which comprises of malls and hotels, revenue booked at about 1.4 trillions, with EBITDA increases by about 60%, hitting at about 448 billions in 2025. This is mostly driven by our mall business, which continued to see improvements in all our key operating metrics, with the footfalls reached at about 11 million visitors per month, benchmarking about 5% year on year, whereas the occupancies also improved from 81% in 2024 to 86.5% in 2025, which is about 7% increase year on year.

On hotels, it's it's it's pretty challenging year for a lot of hospitality business across Indonesia given the the the budget cut spending that was introduced by the government in the first quarter of 2025. Nevertheless, we continue to see improvements across the year, from Q1, Q2, Q3, and Q4, with occupancy continue to strengthens and average hotel room rates able to increase by about 2% year on year.

Now in terms of revenue for 2025, overall, consolidated basis, we've booked at about 9 trillions of revenue, which is slightly which is lower compared to last year in 2024 at 11.5 trillions. This is because of in 2024, the first half of the year, we're still consolidate Siloam as part of our subsidiaries in Lippo Karawaci.

That's the reasons why it was 11.5. Now if we were to assume that Siloam was were to be deconsolidated in 2024, it will reduce you will reduce the the revenue to 6.5 trillions.

On on a like-for-like basis, our top line is actually improved by about 38% year on year. This is driven by, again, real estate developments that I alluded earlier in the in the previous slides.

On the EBITDA, total 2025 closed at about 1.7 trillions, lower compared to last year. This is, again, because of the Siloam still being consolidated.

If we were to do a pro forma on the deconsolidated Siloam, our revenue is actually increase on a our our EBITDA actually increased by about 4% on a like-for-like basis. Now moving on to the P&L.

Now, I've already touched on revenue and EBITDA, but our underlying NPAT is about 630 billion for the full-year 2025, grew from last year 402, grew by about 57%. This is driven by improvements in income from associates because of the deconsolidations of Siloam now.

If for the full for the for the full year of 2025, we've recognized income contribution from Siloam in income from associates, and plus also improvements in the income contributions from Premiere. Our net interest expenses also continued to improve, lower by about 61% to 326 billion.

This is in line with the liability management that we've initiative that we've introduced since couple years ago and as we continue to delever our balance sheets. On the bottom line, NPAT 270 billion.

Obviously, this is not comparable to the previous years given that we had a lot of one-off gains from the big from the sale of Siloam and also the deconsolidations of Siloam that we enjoy in 2024. Our cash balance remains extremely strong, we closed the year at about close to 2 trillions of cash balance.

Now, our focus in 2025, as you can see, is mostly on delivering our projects to our customers. As such, the outflow for payments to contractors has been pretty strong.

Net interest expenses continued to improve. Last year, we had a 935 billions of interest net interest expenses, which dropped to 242 billion.

Also we continue to pay down delever our balance sheets, and the reason why it's a negative cash from financing activities. Now on on the last years, we've managed to refinance our syndicated loans with BTN loans, which basically improve our cost of funding by about 70 basis point.

Now we are paying about BI 7-Day Rate plus 1.4, which is pretty pretty strong for for a real estate play like Lippo Karawaci. Balance sheets has improved quite considerably.

We've paid all our USD-denominated loans in 2025. Then so today, I'm pleased to report that all our interest-bearing liabilities are all in rupiah, which is basically eliminated the FX FX risk from from then onwards.

Our historical net debt is at about has been very low compared to the previous years at about 4 trillions, with debt maturity profile is pretty linear. This is on the back of the refinancing that we had last years.

Moving on just to on real estate overview. In 2025, it it's it's pretty a busy year where we've launches close to about 12 launches in in 2025.

With Lippo Karawaci, we had about six launches throughout the years; Lippo Cikarang, three launches; and Tanjung Bunga, three launches. We sold about 98 projects of of landed residentials and about six mid low- to high-rise projects and 21 shophouses projects.

It's it's pretty a busy year last years, and we we continue to see that this year will remain busy. Our focus will still going to be continue to diversify our portfolio, not only in our existing market, but also expanding to new markets with focus on affordable housings for young families, with extensions to premium residence for mass affluent segments.

Now, this is the evolutions of marketing sales. If we compare to 2021, 2021 we've we've almost triples of our marketing sales, with the latest 2025 at about 5.3.

We'll continue to to have about continue to have a pretty ample land bank that we can leverage, which roughly has an estimated of gross development value of about 155 trillions. This is comprises of about 1,300 hectares of land banks that we have.

Marketing sales in Lippo Karawaci continue to be dominated by landed housing at 79%, followed by shophouses. In Lippo Cikarang, similarly, landed housings 57% of the total marketing sales in 2025, followed by commercial landed, and also land plots comprises of about 33% to the marketing sales.

On payment method, mortgage still dominating at about 64%, followed by installment 21% and cash at 15%. This basically indicates that the majority of customers that the majority of buyers of our properties are all mostly end users.

With the ticket size still dominated by affordable homes at about 2/3 of our marketing sales below 1 billion ticket size, and followed by between 1 to 2 billions, 24%. The majority is actually below 2 billions as we continue to focus on the more affordable products.

This is just the highlights of the handovers for in 2025 across all our developments. In in Lippo in in Park Serpong, three clusters that we introduced in phase one, Cendana Park East, Park North, and Park West, mostly completed handover by about 97% to 98%.

In Lippo Village, also the same, between 88% to 99% fully handed over to our customers. The slightly newer product that we've recently launched in Cikarang, XYZ Livin phase one and The Hive @ Neo Pavillion, we started to do the handover, completed 25% for XYZ Livin and 3% for The Hive @ Neo Pavillion.

Just to give you a sense of the product innovations, and this is something that I'm personally very proud of the team, we've continued to be on the frontier on on product innovations. We've introduced this three-stories landed housings last years, which attracted a lot of interest from our customers: the Gold Pops and the TreeTops.

Price range is between 650 to 900 million rupiah, which is still below 1 billion. Also continue to evolve our two-stories landed housings ranging from the Urban to Gold series with starting price of about 300 million rupiah per units.

Now moving on to lifestyle. Lippo Malls, just to recap, Lippo Malls Indonesia is the largest mall developer and operator with 59 malls managed nationwide in all over 39 cities across Indonesia, with net leasable area of about 2.5 million square meters.

We have a very well-diversified tenant mix across supermarket, department store, F&B, leasures, fashions, supported by some of the strong international and local brands. In terms of performance, it continued to be very strong, with top line increased by about 7% at 729 billion for the full-year 2025.

EBITDA 173 billions, increased by about 7% compared to last years, the margins at 24%. We have continue to see all operating metrics in across our malls continue to improve, with mall visitors improved by about 5% to 11 million per month, and occupancy rate rate improved from 81% to 86.5% in 2025.

This is just some of the activities that our malls conducted in in 2025 in the fourth quarter 2025. In particular, in Sun Plaza Medan, the Baby Shark Camp was was hosted, getting a lot of tractions from the families in Medan.

Palembang Square, we've also launched the new atriums, which strengthened our offerings for our customers in Palembang. Also Senayan Park also introduced this event, drone show, that attracted a lot of attentions from people in Jakarta, went viral in in some of the social media.

It's it's pretty much strengthened the positions of Senayan Park as a leading lifestyle entertainment destinations in Jakarta. On hotels, again, recap, we've exist in about nine top cities across Indonesia with 10 hotel properties and also couples leisure facilities.

Now in terms of market last year, as I mentioned earlier, it it was not an easy year for hospitality business last years given the government budget cut spending that was introduced in the first quarter of 2025. Our revenue decline by about 5% in 2025, registered at about 474 billion, with EBITDA at 164 billion, dropped by about 17%.

Occupancies obviously contracted 99 69% to 64% in 2025. However, we managed to improve our room rate by about 2%.

Now in 2025 alone, we are seeing that things are recovering on quarter-on-quarter basis. We're continue to see that in in 2026, things will continue to progress, and hopefully we we are starting to see that the market recover and we are able to improve our occupancies back to where it was in the previous years.

That's all for from me. Now I'll give it back to Pak Agus for the Q&A section sessions.

Thank you, Pak Fendi, for the presentations. We will now start the Q&A sessions based on the question that we received.

However, I don't see any questions yet in the chat box, in my chat box at least. Pak Fendi, do you see any questions in your chat box?

I

haven't seen anything. Probably we wait for a minute or so.

Just happy to take on questions from participants if there's any.

Yes. You can use the chat box, which is one of the buttons on the bottom of your screen to ask any questions.

I think there's one: "How much is the Park Serpong project has been launched, and how many hectares are left?" Pak Fendi, would you like to take this questions?

Sure. I think so far it's probably about 20%, 30% of the area that we've earmarked for the real estate development in Park Serpong has been launched.

We still have an ample land banks that we could develop in Park Serpong. I don't remember the exact numbers, but I'll get back to you on that.

Yeah.

If you remember the Seven Wonders projects, that's the seventh phase of the Park Serpong project. They have completed six, and right now we are on phase seven.

Thank you for the question. Then the next one: "What is the government's budget for hotels in 2026, and how does the company view the hotel sector in 2026?

Will that improve back to the 2024 level?" Pak Fendi, do you have any visibility to the government's budget?

Yeah.

I don't have the exact government budgets for travels and events and what not. As we are seeing improvements in quarter on quarter on government spendings in events and hotels, if the trend continues, we should be seeing 2026 continue to improve.

From what we see that we are hopeful that the performance will improve back to 2024 level as you've suggested. Is there possibility of increasing the pricing in Park Serpong?

Yes, of course. This is something that we are seeing as we've evolved from phase one to phase, I believe, nine, the latest launch, we continue to see the price point continue to increase with I think the improvement in access to the other cluster and developments within Park Serpong.

We are going to introduce a more premium products in Park Serpong, so that will improve the pricings for the secondary home as well as for the new launches. Yes, the short answer is yes, we are continue to push for an increase in price point in Park Serpong.

Is there any presales guidance in 2026? Yes.

Our guidance for 2026 is 6 trillions of marketing sales. Now, this is on the back of we think that 2026 continue to be slightly more subdued given what's happening geopolitically across the globe, as well as while we are seeing things are improving in terms of buying power, remain cautiously optimistic of the situations in Indonesia for 2026.

Any latest update on Meikarta, and how much handover is left? I think the majority of the handover has been completed in 2025.

We still have about slightly more than 2,000 units that we need to handover until 2027. We are optimistic given the volume that we've completed and handed over in 2025, this should not be an issues.

I think we cover all the questions, Pak Agus. Yeah.

Thank you. Because we don't have any more questions, with that, I think we have reached the end of today's earnings call.

The presentation material will be sent to you shortly after this, and we'd like to thank you, everyone, again, for attending Lippo Karawaci's full-year 2025 earnings call today, and we wish you all a very good day ahead. Thank you again.

Thank you, everyone. Have a good day.