LIPPO-MAPLETREE - Lippo Malls Indonesia Retail Trust - Investor ...

The SponsorThe business structure of the Sponsor comprises the following three main aspects:HEALTHCAREThe Sponsor owns Siloam Hospitals Lippo Cikarang and manages four hospitals being, Siloam HospitalsLippo Cikarang, Siloam Hospitals Lippo Karawaci, Siloam Hospitals West Jakarta and Siloam HospitalsSurabaya, with a total 591 operational beds, and a maximum bed capacity of 835, located in Jakarta,Greater Jakarta and Surabaya. Specialist medical services offered include complex surgical procedures,laboratory, radiology and imaging, general healthcare and emergency services. In its hospitals, theSponsor has developed “centres of excellence” 1 in various areas of healthcare which are recognised asproviding premium healthcare services in Indonesia.HOSPITALITY AND INFRASTRUCTUREThe Sponsor manages hotel operations and operates a number of restaurants and other facilities locatedaround Indonesia. The Sponsor has developed over 280 km of roads, water treatment plants, trafficcontrol services, in addition to four hotels with a total of over 800 rooms and a 2,125 sq m food court. TheSponsor also provides quality urban management services such as security, water and sewage treatment,daily garbage collection, health and hygiene services, landscape, roads and drains maintenance andpublic transportation services to the residents of Lippo Karawaci, Lippo Cikarang and Tanjung Bungaurban developments. This provision of high quality, privately operated and commercially-run urbanmanagement is unique in Indonesia.HOUSING AND LAND DEVELOPMENTThis business aspect deals with the urban development of residential, commercial, retail and industrial realestate. Starting in 1993 with the development of the Lippo Karawaci urban development and subsequentLippo Cikarang and Tanjung Bunga urban developments, the Sponsor has pioneered the development of“Edge Cities” in Indonesia. “Edge Cities” are designed and constructed with all necessary infrastructure toestablish self-contained cities beyond the boundaries of larger cities, in the case of Lippo Karawaci andLippo Cikarang, to the west and east of Jakarta, respectively. The Sponsor is internationally recognisedand has won awards for such “Edge Cities” developments. These three urban developments have acombined population of more than 70,000 residents, 20,000 homes and employ more than 120,000workers. In addition, the Sponsor owns eight commercial and retail centres, amounting to over250,000 sq m of saleable area and 40,000 sq m of retail space available for leasing.The Sponsor’s total revenue was Rp. 1,905.0 billion (approximately S$330.2 million) in the financial yearended 31 December 2006. Its market capitalisation on the JSX was Rp. 10,609.2 billion (approximatelyS$1.8 billion) based on the closing price per ordinary share on the JSX of Rp. 1,790.0 as at 18 October2007. 50.0% of its revenue in 2006 was derived from recurring income (including rental income from itsresidential, commercial and retail, and revenues from the operation of five medical facilities and operationof its hotels. 50.0% of its revenue in 2006 was derived from development income (including thedevelopment and sale of residential, commercial and retail and light industrial properties).The table below, which was prepared based on Indonesian generally accepted accounting principles, setsforth the unaudited consolidated revenues, generated by each of the Sponsor’s Housing and LandDevelopment, Healthcare and Hospitals as well as Hospitality and Infrastructure business segments in theperiod indicated.The consolidated revenues shown in the table below have been translated for convenience and as amatter of arithmetical computation only. The consolidated revenue is translated at an average rate ofRp. 5,770 per S$1.00. Such translations should not be construed as a representation that the Singaporedollar amounts could be converted into Indonesian Rupiah at the above rate or other rate.1 “Centres of excellence” is a term used by the Sponsor to describe a particular area of medicalspecialisation, proficiency and excellence, with the relevant specialist doctors, nursing staff andstate-of-the-art medical equipment and facilities, at a hospital.209