Investor Presentaiton

Key Principles - PSAK 72 & 73 SOLIPPO PT LIPPO KARAWACI TOK PSAK 72 The new standard require recognition of Revenue based on when control is transfer to the customer. Therefore, for certain contracts where the Group does not have enforceable right to payment, revenue is recognized only when the completed residential project is delivered to the customers and the customers have accepted it in accordance with the sales contract. Thus, some of the project that has been recognized as Revenue in the financial statements is being reversed. PSAK 73 No impact on actual cash flow. Significant impact on reporting of financial statements: All leases (operating and finance lease) will be recognized: Right-of-use (ROU) assets Lease liability Any deferred gain on sale and leaseback will be allocated against ROU assets on adoption Lease expense is replaced by: Depreciation of ROU Assets Interest expense on lease liability For sub-lease arrangement, the lessor must recognizes any difference between the ROU asset and the net investment in the sublease in profit or loss 70 0

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