ITOCHU Announces Execution of Memorandum of Understanding To Develop Successful Healthcare Business in Asia

June 27, 2017

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that it has executed a memorandum of understanding to explore and develop healthcare business opportunities in Asian countries with Lippo Group (hereinafter “Lippo") and its property and healthcare arm Lippo Karawaci Tbk. (hereinafter “LPKR”).

Lippo operates LPKR, the largest listed property company in Indonesia by total assets and revenue, with a unique and integrated business model. This businesses comprise residential/township, retail malls, hospitals, hotels and asset management. Lippo also operates Indonesia’s premier hospital group, Siloam Hospitals, which operates 26 hospitals, and 16 clinics in 19 cities throughout Indonesia.

In Asia, demand for better healthcare is growing and need for significant investment in hospital and healthcare infrastructure is rising in light of the rapidly transforming society and changing population demographics as over 50% of the world’s population currently lives in Asia and over 1.3 billion people are expected be over 50 years old by 2025.

Both ITOCHU and Lippo will jointly conduct a detailed feasibility study for the establishment of a joint venture in Singapore to mutually develop healthcare business opportunities including but not limited to the following areas:

1. Collaboration in healthcare areas in Asian countries:
a) investment and operation of clinics, hospitals and other healthcare facilities in
countries such as Vietnam, Myanmar, Philippines, Malaysia, and Australia

2. Collaboration in healthcare areas in Indonesia:
a) development and operation of Japanese-style hospitals in Indonesia
b) investment and operation clinics, hospitals and other healthcare facilities

3. Collaboration in Other Areas:
a) business cooperation opportunities in construction and real estate industries
including the possible investment or involvement in REIT business and hospital construction projects
b) outsourcing of certain medical services which are typically conducted by
hospitals and clinics themselves in Indonesia and Asian countries, and to
establish separate entities to provide such services

Overview of LPKR

Name PT Lippo Karawaci Tbk.
Representative Ketut Budi Wijaya
Location Indonesia
Established 1990
Business activities Residential construction and sales, hospital construction and operation, real estate management