Pt Map Aktif Adiperkasa Tbk · IDX:MAPA
Pt Map Aktif Adiperkasa Tbk — Investor Presentation (December 2018)
59 slides from Pt Map Aktif Adiperkasa Tbk's investor presentation, December 2018
Slide 1: MAP Active Company Presentation
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Slide 2: Forward-looking statements disclaimer
This presentation contains "forward-looking statements", which are based on current expectations and projections about future events, and include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words
Slide 3: Overview of MAP Active
Overview of MAP Active 3
Slide 4: In 2011, Indonesia's Triyaningsih won Asean Games Gold medals
In 2011, Indonesia’s Triyaningsih won 3 Asean Games Gold medals in 5 days. A feat never before achieved Triyaningsih a 5000M : GOLD 10.000M : GOLD MARATHON : GOLD Res Pelt
Slide 5: To bring Sports & Healthy Living to all Indonesians
Our Vision To bring Sports & Healthy Living to all Indonesians To enjoy the Game of Life ! 5
Slide 6: MAP Active partners with CVC
MAP Active partners with CVC 6
Slide 7: MAP Active at a glance
MAP Active at a glance #1 sports retailer in Indonesia with 63% dominant market share in 20171 Operates 1,074 stores and 194,677sqm of selling space in 74 cities as of December 31, 20182 73.6% of sales generated through our 10+ proprietary multi-brand chains 150+ brands, of which 40+ are exclusive b
Slide 8: Our Business: Indonesia's #1 sports retail marketing powerhouse
Our Business Indonesia's #1 sports retail marketing powerhouse with no close competitor Unique multi-tier retail Comprehensive product strategy catering to wide offering with the largest range of consumer segments portfolio of exclusive brands in sports Unrivalled reach with Sustained operational na
Slide 9: Key investment highlights
Key investment highlights 9
Slide 10: Indonesia's #1 sports retail marketing powerhouse
Indonesia's #1 sports retail marketing powerhouse 1. Significant growth opportunity in highly underpenetrated Indonesia sports market 2. Indonesia's #1 sports retail marketer strategically positioned to capture the strong macro trends 3. Unique multi-tier and diversified portfolio of proprietary ret
Slide 11: Indonesia as the perfect staging ground for MAP Active's expansion
1 Indonesia as the perfect staging ground for MAP Active’s expansion Indonesia – 4th largest in the world, largest in … with growth supported by strong … and a young population Southeast Asia domestic demand… 3x 3x 4x 8x 47x Indonesia’s relative 9.5% 264 9.1% 8.7% 2012 - 2018 Nominal GDP CAGR size (
Slide 12: Indonesia sports retail is an exciting market geared for transformational growth
1 Indonesia sports retail is an exciting market geared for transformational growth Market share of international brands(a) 51% 60% 71% International Sportswear Retail Value 15.5% US$1,128 m Consumers adopting an increasingly more active CAGR lifestyle, leading to the growing popularity of sports a
Slide 13: Unrivalled nationwide retail network
2 Unrivalled nationwide retail network Presence across 74 cities, 1,074 stores and 194,677 sqm of selling space1 and best positioned to capture significant market2 growth of 12% Sumatra 10% of sales Sulawesi 4% of sales Kalimantan 3% of sales Others Java (Jakarta) 3% of sales 75% (43%) of sales Bali
Slide 14: Comprehensive coverage of retail channels
2 Comprehensive coverage of retail channels Our multi-brand stores account for over 70% of our revenue Sports • 10+ store banners across different formats, price points and images reaching all Multi-brand customer groups stores • Aggregators of different brands and Retail products Stores Leisure Kid
Slide 15: Growing leisure and kids segments
2 Growing leisure and kids segments We are utilizing a similar multi-tier retail approach for our growing leisure and kids segments Net revenue and growth (IDRbn, %) • Multi-brand banners1: Ogaan, Payless 22.3% 19.0% • Broad range of leisure footwear, accessories and 889 747 Leisure apparel from wel
Slide 16: Unique multi-tier portfolio of proprietary retail banners
3 Unique multi-tier portfolio of proprietary retail banners to achieve strong profitability Multi-tier portfolio of banners, ranging from Premium to Value, accounting for 70+% of sales Distinct retail concepts addressing wide consumer segments with comprehensive product offering Go-to sports retaile
Slide 17: Distinctive capability to distribute full range of products via multi-tier retail
3 Distinctive capability to distribute full range of products via multi-tier retail Our unique store portfolio allows us to distribute a wide range of products for brands like Skechers, capturing a significant part of the value chain PREMIUM Rp 1,299M Rp 999.000 Rp 1,299M Rp 499.000 LEISURE SPORTS R
Slide 18: Comprehensive product offering underpinned by 40+ exclusive brands
4 Comprehensive and differentiated product offering underpinned by 40+ exclusive brands We market over 150+ brands across sports, leisure and kids business lines We retail and distribute a differentiated portfolio of 40+ exclusive brands Comprehensive product offering to consumers and invaluable ins
Slide 19: Trusted partner of choice for international brands
4 Trusted partner of choice for international brands Top 5 international brand1 Top 5 international Top 5 international brand1 brand1 Leading mono-brand international sportswear retailer in Indonesia Key Partner Benefits with MAP Active • Instant and unrivalled access to the Indonesian consumer as #
Slide 20: Focus on inventory throughput and formalized clearance strategy
5 Focus on inventory throughput and formalized clearance strategy In the absence of established outlet malls in Indonesia, our multi-tier retail platform provides us with a unique in-house ecosystem to actively manage our inventory flow Centralized Analytics & Multi-tier retail banners Unique ”Clear
Slide 21: Performance update
Performance update 21
Slide 22: MAP Active at a glance
MAP Active at a glance #1 sports retailer in Indonesia with 63% dominant market share in 20171 Operates 1,074 stores and 194,677sqm of selling space in 74 cities as of December 31, 20182 73.6% of sales generated through our 10+ proprietary multi-brand chains 150+ brands, of which 40+ are exclusive b
Slide 23: Select growth initiatives in 2018
Select growth initiatives in 2018 Planting seeds New store openings New brands Digital development Vietnam expansion 24,154sqm net new LEGO, maximizing Opened 1st O2O Opened two stores and selling space potential to penetrate kids Planetsports.Asia as a office in Vietnam1, play and early learning hu
Slide 24: FY2018 Financial highlights
FY2018 Financial highlights Powerful combination of exciting revenue growth and sizable margin expansion Net revenue and growth (IDRbn, %) Gross profit and margin (IDRbn, %) 23.0% 44.9% 45.3% 42.9% 12.0% 6,246 2,828 5,076 2,278 4,534 1,945 2016 2017 2018 2016 2017 2018 Adjusted EBITDA and margin1 (I
Slide 25: FY2018 Operational Highlights
FY2018 Operational Highlights Accelerated expansion drive and impactful operational excellence Same-store sales growth1 (%) Selling space evolution (sqm)3 11.8% 14.2% 11.1% 8.5% 8.3% 194,677 157,217 170,523 2016 2017 2018 2016 2017 2018 Selling space Selling space growth Inventory days2 Inventory ag
Slide 26: Improvement in sell-through with further upside
Improvement in sell-through with further upside Top 10 brands Sell-through of current season products at end of current season1 (% of quantity) 47% 41% 38% 32% SS17 FW17 SS18 FW18 Sales contribution of products with no discount (% of quantity) 43% 36% 2017 2018 Note: 1. SS refers to Spring/Summer se
Slide 27: Future growth strategies
Future growth strategies 27
Slide 28: Future growth strategies
Future growth strategies 1 2 3 Profitable Enhance Focus on store product cycle top brands expansion efficiency Target 10% CAGR Maintain strong Focus on ROI and increase in selling area SSSG and further Productivity over next two years improve margins 4 5 6 Execute digital Long term Strategic s
Slide 29: Enhance our integrated digital retail platform
Future growth strategies 4 Continue to enhance our integrated digital retail platform 3rd party online Mono-brand Offline stores Own digital platform marketplaces websites Indonesia site Launched in 2018 launched in 2018 Development plans for digital retail Planet Sports FitWalk APP - Mobile applica
Slide 30: Explore South East Asia expansion opportunities
Future growth strategies 5 Explore South East Asia expansion opportunities for long term Pan-ASEAN presence Attractive and sizeable market 2017 Population (m) 264 105 96 66 32 Vietnam - MAP Active's first step of geographic expansion 6 Two stores in Ho Chi Minh1, ID PH VN TH MY SG expected to open a
Slide 31: Open to opportunistic strategic acquisitions
Future growth strategies Open to opportunistic strategic acquisitions that are complementary to our existing brand and 6 store portfolio Additional proprietary brands that are complementary to our product range to help drive traffic Focus on brands with specialized products that are underserved by o
Slide 32: Financial highlights
Financial highlights 32
Slide 33: Key financial themes
Key financial themes Strong cash flows • Focused on cash flow Profitable management • Strategic capex allocation Outstanding • Gross margin expansion from • Continuous cash conversion cycle improvement growth better merchandising and inventory management • Achieving operational leverage • Track reco
Slide 34: FY2018 Financial highlights
FY2018 Financial highlights Powerful combination of exciting revenue growth and sizable margin expansion Net revenue and growth (IDRbn, %) Gross profit and margin (IDRbn, %) 23.0% 44.9% 45.3% 42.9% 12.0% 6,246 2,828 5,076 2,278 4,534 1,945 2016 2017 2018 2016 2017 2018 Adjusted EBITDA and margin1 (I
Slide 35: FY2018 Operational Highlights
FY2018 Operational Highlights Accelerated expansion drive and impactful operational excellence Same-store sales growth1 (%) Selling space evolution (sqm)3 11.8% 14.2% 11.1% 8.5% 8.3% 194,677 157,217 170,523 2016 2017 2018 2016 2017 2018 Selling space Selling space growth Inventory days2 Inventory ag
Slide 36: Selling and G&A expenses
Selling and G&A expenses We have demonstrated our ability to maintain cost control while achieving strong growth in sales, demonstrating our capability to achieve operating leverage SG&A expenses and as % of revenue (IDRbn, %) SG&A breakdown (2018) 32.8% 32.8% Other G&A 31.4% expenses 24% Rental and
Slide 37: Improvement in working capital
Improvement in working capital Focused inventory management has resulted in a material improvement of the cash conversion cycle, with further gains expected to be delivered Cash conversion cycle (days)1 Inventory days2 201 168 156 180 151 2016 2017 2018 137 Trade receivables days3 8 9 8 2016 2017 20
Slide 38: Free Cash Flows
Free Cash Flows Highly cash generative business with promising momentum • 2016 - Positive net working capital due to big improvement in inventory days • 2017 - Further improvement in working capital with inventory days declining from 201 days in 2016 to 168 days in 2017 - Higher capex due to strong
Slide 39: Reconciliation of Adj. EBITDA and Adj. net income
Reconciliation of Adj. EBITDA and Adj. net income Reconciliation of adjusted EBITDA to net income Commentary (IDRbn) 2016 2017 2018 • Day 1 gain in fiscal year 2015 is the difference between the nominal value and fair Net income for the year 257 293 353 value of the Rp 1.5tn bond held by ASH Income
Slide 40: Epilogue
EPILOGUE “1 won my first world title as a Junior in 1986. And once | got a taste of victory there were No Limits! First it was the Indonesia Open in 1988, then the All England 1990, the World Cup 1991, and finally the Olympics,1992 Winning became a state of mind that | took throught my life, and tha
Slide 41: Additional materials
Additional materials 41
Slide 42: Indonesia's #1 sports retail marketer
2 Indonesia's #1 sports retail marketer #1 player in Indonesia's International Sportswear Market in 20171 63.4% Largest retail network of 1,074 stores across 74 cities2 Comprehensive coverage through a multi-tier, multi-format platform Dominant player Powerful brand management capabilities across pr
Slide 43: Operational excellence and culture of continuous improvement
5 Operational excellence and culture of continuous improvement Focused strategy of operational excellence, and a culture of on going improvement, via optimization of the business flow across major functions, driving profitability improvement and efficiency Operational Excellence Future Growth Driver
Slide 44: Beneficial relationship with MAPI
7 Beneficial relationship with MAPI Leading lifestyle retailer in Indonesia with 25+ years of experience Businesses across fashion apparel, department stores, sports, kids, beauty, food & beverage and lifestyle Providing selected central services such as tax, legal, human resources and licensing Ben
Slide 45: Additional materials: Business overview
Additional materials: Business overview 45
Slide 46: No Limits
NO LIMITS he 0000 & Ste of MZW IAA PA Cfi-eS MLPLAT ANALYZE! PLANET SPORTS. ASIA PRENUILA q pz ¢_ MULTI TIER _5, wXessertor BUY! ‘ges “RETAL SPORTS STATION VALLE SELL STUFF ! DISTRIBUTE ! ALLOCATE !
Slide 47: Our Multi Tier Retail Kingdom
Retail network Our Multi Tier Retail Kingdom • 10+ multi-brand chains with strong recognition throughout Indonesia • Each of the multi-brand chains has a distinct retail concept and store identity, targeted at a specific consumer segment • The retail concept determines the interior design, the produ
Slide 48: Multi-brand stores
Retail network Multi-brand stores Key statistics • Total selling space: 23,030 sqm (11.8% of total) • # of stores: 39 • Size range: 300 – 1,500 sqm • Positioning: Premium • 2018 net revenue: ~IDR 676bn (10.8% of total) Premium sports stores merchandised by sports category and located in top malls •
Slide 49: Multi-brand stores
Retail network Multi-brand stores Key statistics • Total selling space: 83,871 sqm (43.1% of total) • # of stores: 354 • Size range: 100 – 2,000 sqm • Positioning: Medium to value • 2018 net revenue: ~IDR 2,248bn (36.0% of total) Value sports stores that offers a wide range of the latest competitive
Slide 50: Multi-brand stores
Retail network Multi-brand stores Key statistics • Total selling space: 2,336 sqm (1.2% of total) • # of stores: 21 • Size range: 100 – 300 sqm • Positioning: Medium to premium Fashion and specialty athletic footwear and apparel stores primarily located in grade A shopping malls 50
Slide 51: Multi-brand stores
Retail network Multi-brand stores Key statistics • Total selling space: 2,913 sqm (1.5% of total) • # of stores: 50 • Size range: 50 – 120 sqm • Positioning: repositioned for 2019 as Indonesia's entry branded sports store • Aim to take advantage of the emerging classes frequenting "mom & pop" stores
Slide 52: Multi-brand stores
Retail network Multi-brand stores Key statistics1 • Total selling space: 2,294 sqm (1.2% of total) • # of stores: 15 • Size range: 80 – 100 sqm • Positioning: Medium to premium Specialty golf shops offering equipment, apparel, footwear and accessories. Primarily located in grade A and grade B shoppi
Slide 53: Multi-brand stores
Retail network Multi-brand stores Key statistics1 • Total selling space: 745 sqm (0.4% of total) • # of stores: 12 • Size range: 80 – 100 sqm • Positioning: Medium to premium Premium Sports footwear, apparel and accessories products for kids aged from 0 – 12 years old Located across grade A to grade
Slide 54: Multi-brand stores
Retail network Multi-brand stores Key statistics • Total selling space: 2,956 sqm (1.5% of total) • # of stores: 5 • Size range: 300 - 800 sqm • Positioning: Fast Fashion Value Footwear Family Footwear stores selling international and private label casual, office, active, and kids shoes Primarily lo
Slide 55: Multi-brand stores
Retail network Multi-brand stores Key statistics • Total selling space: 18,388 sqm (9.4% of total) • # of stores: 87 • Size range: 180 – 200 sqm • Positioning: Value Family footwear stores catered to the value segment and located across grade A to grade C shopping malls Products are merchandised by
Slide 56: Multi-brand stores
Retail network Multi-brand stores Key statistics • Total selling space: 22,590 sqm (11.6% of total) • # of stores: 82 • Size range: 150 – 800 sqm • Positioning: Medium to Premium Specialty branded toys and early learning stores with products divided into departments e.g. hobby craft and collectibles
Slide 57: Mono-brand stores
Retail network Mono-brand stores Selected brand principals Overview of mono brand stores ADIDAS ASICS BIRKENSTOCK • Market leader in mono-brand specialty stores for international sporting and leisure brands in Indonesia, with proven ability to maintain and enhance unique identity of brands • Over 30
Slide 58: Product Purchase Cycle
Information technology and inventory management Product Purchase Cycle MAP Active merchandising value chain involves an end-to-end, highly-interdependent flow, to deliver a superior product experience to our customers PLAN BUY MAKE MOVE SELL • Brand and category • Collection review • Sourcing optimi
Slide 59: Brand management
Brand and product portfolio Brand management Overview of brand arrangements • Typically in the form of distribution or license agreements for an average term ranging from 5 to 25 years. There are typically minimum purchase requirements and sales targets • Under the brand arrangements, MAP Active to:
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