Pt Express Transindo Utama Tbk · IDX:TAXI
Pt Express Transindo Utama Tbk — FY2014 Earnings Presentation
54 slides from Pt Express Transindo Utama Tbk's earnings presentation, Apr 23, 2015
Slide 1: Company Presentation
Company Presentation
Slide 2: Agenda
Agenda 1. Business overview 2. Industry overview 3. Investment highlights 4. Financial highlights 5. Appendix Due Diligence Meeting & Public Expose 1
Slide 3: 1. Business Overview
Presentation2 Care & Commitment Motivation & Inspiration Persistence Teamwork & Discipline 1. Business Overview Due Diligence Meeting & Public Expose 2
Slide 4: Express Group Today
Express Group Today Taksi Regular One of the leading transportation operator in Indonesia Taksi Premium 25+ years of business operations 11,000+ regular taxi fleets by 2014 Supported by more than 11,000 primary and 13,000 reserve drivers VATB Due Diligence Meeting & Public Expose 3
Slide 5: Evolution of Express Group
Evolution of Express Group Start / invent partnership scheme Begin major expansion IPO Bond Issuance A 25+ years of Track track record Record 1989 2002 2008 2010 2011 2012 2013 2014 with the same management Start commercial operation UNDP recognition Launch Bus & Eagle Taxi Commission-based Partners
Slide 6: Board of Directors & Commissioners
Board of Directors & Commissioners President Director Director Director Independent Director Daniel Podiman Herwan Gozali David Santoso Shafruhan Sinungan Due Diligence Meeting & Public Expose 5
Slide 7: Express Group Corporate Overview
Express Group Corporate Overview Regular Taxi Premium Taxi VATB 100% 20% * 100% 20% * 100% Bali, Bandung, Bali, Jakarta Jakarta Jakarta Lombok TAXIS Car Rental Limousine Eagle High service Product offering * The remaining 80% shareholding is owned by a third party, PT Mahkota Imperia Due Diligence M
Slide 8: Snapshot of Express' Business Operations
Snapshot of Express’ Business Operations… More than 10,550 fleet as of 31 Dec 2014 Operates principally in Greater Jakarta, Surabaya, Semarang, Medan and Padang Regular Taxi In preparation for expansion to other cities New brand “Eagle Taxi” is exclusively ready to serve hotels and other she
Slide 9: Limo & Car Rental and Bus
Snapshot of Express’ Business Operations… Limo & Car Rental Comprises primarily of limousine services in Bandung, Bali and Lombok, operated by a subsidiary and through an associated company V There are approximately 200 operating units as of 31 December 2014 A Business T Segments B Bus New bus
Slide 10: … and its geographical locations
… and its geographical locations Strategically located business operations with strong growth potential Regular Medan Key Highlights More than 30 taxi pools and 70 shelters (including hotels) served Rapidly growing population in key cities Padang Increasing business travels due to strong economi
Slide 11: Hotels with Express Tiara, Limousine and Eagle Taxi
Hotels with Express Tiara, Limousine and Eagle Taxi We continuously serve the following 5-stars Hotels in Jakarta, Bandung, Bali and Lombok. We will expand to many other hotels to serve our customers better. Due Diligence Meeting & Public Expose 10
Slide 12: 2. Industry Overview
Presentation2 Care & Commitment Motivation & Inspiration Persistence Teamwork & Discipline 2. Industry Overview Due Diligence Meeting & Public Expose 11
Slide 13: Overview of Indonesia taxi industry
Overview of Indonesia taxi industry Market size¹ (in Rp.bn) Breakdown by vehicle type and geography % of 2013 market size¹ Premium 5% Others 15,470 33% 14,181 12,862 11,439 9,547 Regular 5% 8,153 6,253 6,832 Greater Jakarta 4,080 4,997 67% 2009 2010 2011 2012 2013 2014E2015E2016E2017E2018E By vehicl
Slide 14: Huge untapped market potential
Huge untapped market potential Demand (taxi ridership in mm) Demand for ground transportation has continued to show an upward trend in recent years Indonesia‟s ridership in the taxi industry has grown at 766 an average of approximately 12.3% since 2007 to 2011 637 538 Expected growth in riders
Slide 15: Regional Comparison
Regional Comparison Level of taxi services penetration in Greater Jakarta area, measured by number of taxis per 1,000 people, is the lowest amongst several capital cities in Asia: 10.2 5.3 2.5 1.4 Greater Jakarta Hong Kong Singapore Bangkok Fleet size 41,623 18,138 28,210 107,204 Population (‘000) 2
Slide 16: Growth facts
Growth facts Size of regular taxi 10,550 Licenses 4,922 • Approximately 1,500 unutilized licenses as of 31 December 2014 2010 2014 Drivers • Innovative partnership scheme to Revenue (IDR in billion) recruit drivers 890 Land and Depot • Purchase total 10.4 hectares of land in 219 Greater Jakarta Area
Slide 17: Key growth for taxi industry in Indonesia
Key growth for taxi industry in Indonesia 1. Limitations on private car ownership Government introducing policies curbing growth of private vehicles to mitigate congestion - Higher tax for 2nd private car (since December 2014) - Increase of minimum down payment ratio to 25% for vehicle purchases (si
Slide 18: Barriers to Entry in Indonesia Market
Barriers to Entry in Indonesia Market Auction Process The requirements set by the government depend on the quota and current Announcement for auction of taxi taxi industry condition. However, it is generally categorized into 3 types: licenses in media by the government Category A: High standard of r
Slide 19: Scouting Strategy for New Taxi Drivers
Scouting Strategy for New Taxi Drivers ProKB (Program Kemitraan Berjenjang) To motivate existing drivers to continuously help the Company looking for new drivers Roadshow Brand Ambassador Bus as facilitation for roadshow to Driver‟s In certain events, our top performer village helps to accommodate e
Slide 20: Update on fuel price and taxi tariff comparison
Update on fuel price and taxi tariff comparison Gasoline RON 88 Price (IDR) Taxi Lower Tariff per KM (IDR) 8,500 6,500 6,700 6,000 5,500 5,000 4,500 4,500 2,400 4,000 4,000 3,000 2,500 2,500 2,500 2,500 1,800 1,800 1 Mar 2005 1 Oct 2005 24 May 2008 1 Dec 2008 15 Dec 2008 15 Jan 2009 22 Jun 2013 18 N
Slide 21: 3. Investment Highlights
Presentation2 Care & Commitment Motivation & Inspiration Persistence Teamwork & Discipline 3. Investment Highlights Due Diligence Meeting & Public Expose 20
Slide 22: Investment Highlights
Investment Highlights One of the leading taxi provide Solid support from major with premium brand image and shareholder excellent services Pioneering Business business We offer opportunities for with strong our investor to take part in model with and stable the rapid growth of partnership Indonesian
Slide 23: Second largest market share translated into premium brand equity
1 Express’ second largest market share has translated premium brand equity Awards received for premium brand imaging and top customer services Indonesia New Best Emiten 2013 from Warta Ekonomi Silver Brand Champion of Taxi Operator in Jakarta, from Markplus Insight and Marketeers Magazine The Best I
Slide 24: Second largest market share translated into premium brand equity
1 Express’ second largest market share has translated premium brand equity Awards received for premium brand imaging and top customer services One of the Express Group’s driver achieve an award #2 AKUT National 2014 (National award for taxi drivers across Indonesia) Due Diligence Meeting & Public Ex
Slide 25: Pioneering business model
2 Pioneering business model PARTNERSHIP SCHEME MODEL Provides security deposit and pays a fixed Express Drivers Purchases and operates the taxi revenue stream to company Provides training and facilities Reward eligible driver with the option to purchase the vehicle after 5 – 7 years if certa
Slide 26: Partnership Model vs Commission Model
Partnership Model vs Commission Model Regular Taxi – Express Group Regular Taxi – Competitor Partnership Commission Car Ownership • Drivers have the option to purchase the • Drivers have the option to purchase the car car after 6-7 years (length of the contract) after 5 years (useful life of asset)
Slide 27: Strong scalable platform with a proven growth track record
3 Strong scalable platform with a proven growth track record Operational and Simple & Scalable Obtain driver licenses Converting awarded income Income to Express Income to Express platform taxi licenses to directly correlated to utilized new fleet generating fleet scale of operations Regular Taxi Fl
Slide 28: Resilient and stable cash business
4 Resilient and stable cash business Key highlights Stable cash inflows Initial security deposit of Rp.7.5mm1 collected Daily collection of fixed driver tariff fee of Rp.285,000 1,2 provides stable cash inflows Rp.40,0001,2 collected on a daily basis as contribution towards maintenance reser
Slide 29: …coupled with strong sponsor support
5 …coupled with strong sponsor support Established 1st privately owned GSM provider (XL) Established 1st free-to-air television provider (RCTI) Developed Express into No. 2 player in Indonesia Innovative & entrepreneurial creativity Manages a portfolio of Proven Turn around of Bentoel1 inv
Slide 30: Our strategic roadmap going forward
Our strategic roadmap going forward 1 ACCELERATE MARKET POSITION 2 EXPAND VALUE ADD SPECTRUM Further expand market share in Further expand into Premium and Greater Jakarta and other regions value-added through fleet expansion transportation businesses Fortify market position in tourist Diver
Slide 31: 4. Financial Highlights
Presentation2 Care & Commitment Motivation & Inspiration Persistence Teamwork & Discipline 4. Financial Highlights Due Diligence Meeting & Public Expose 30
Slide 32: Key Revenue Drivers
Key Revenue Drivers Regular Taxi Segments VATB Segments Revenue Number of Ridership Operating Fixed tariffs Tariffs Volume Revenue Fleet drivers Revenue Revenue proportion as of Dec 2014 Revenue proportion as of Dec 2013 Taxi vehicles Spare parts Vehicles for rent Others Taxi vehicles Spare parts Ve
Slide 33: Margin Comparison of Business Segment
Margin Comparison of Business Segment Regular Express Tiara Express Eagle High The margin diagram below is based on the cost Type of vehicle: Toyota Etios Toyota Alphard Mercedes-Benz Big Bus calculation worksheet with No. of vehicles: 100 200 100 the following assumptions: Useful live (years): 6 5
Slide 34: Key Financial Summary
Key Financial Summary Profit Loss Growth (in billion Rp) Margin Analysis Revenue EBITDA Net Income For The Year EBITDA Margin Net Income Margin 890 72% CAGR Revenue = 35 % 69% CAGR EBITDA = 34 % 64% 64% 59% 59% CAGR Net Income = 110 % 687 524 472 442 338 278 19% 219 232 16% 18% 188 159 13% 120 133 1
Slide 35: Comparison of operating profit
Comparison of operating profit Audited Income Statement (In Rp Million) 31-Dec-14 31-Dec-13 Movement % Total Comprehensive Income 118,286 131,783 (13,498) -10% To exclude gain on available-for-sale financial assets: Realized gain on sale - (7,578) 7,578 -100% Realized gain on foreign exchange - (21,
Slide 36: Additional Fund from Issuance of Bonds
Additional Fund from Issuance of Bonds Principal: IDR 1,000,000,000,000 (1 Trillion Rupiah) Issuance date: 17 June 2014 Period: 5 years Utilization Plan on Bond Funds Interest rate: 12.25% p.a. Interest payment: Quarterly Term of payment: Rating: Bullet Payment idA (Single A) * Purchase of 40% Land
Slide 37: Key Takeaways
Key Takeaways Strong scalable platform with a proven growth track record Pioneering partnership model that aligns interest Young and well-maintained taxi fleet Large & growing pool of drivers to increase market position Resilient and growing cash flow profile Innovative cash management system Strong
Slide 38: Achievements in 2014
Achievements in 2014 We keep on expanding our business through recent activities in 2014: a. Additional 150 bus units and 300 premium taxi units b. Launching of Multi-Purpose Vehicle (“MPV”) taxi c. New brand - Eagle Taxi (commission based taxi) d. Utilization of mall‟s parking lot as taxi depot e.
Slide 39: Additional Bus and Premium Taxi
Additional Bus and Premium Taxi Additional new units for “Eagle High” bus and “Tiara Express” premium taxi will increase the revenue contribution from VATB business line. We are in the process of adding 130 units of big bus and 20 units of medium bus. Besides, new brand “Illusion” is also in progres
Slide 40: Launching of Multi-Purpose Vehicle Taxi
Launching of Multi-Purpose Vehicle (“MPV”) Taxi Public Company Need and demand for spacious trunk High resale value of the car PT Satria Express Perdana (“SEP”), in Semarang (Central Java), operated using Toyota Avanza as regular taxi. There are 200 units of regular taxi operated in Semarang, so far
Slide 41: New Brand - Eagle Taxi; Utilization of Mall's Parking Lot
New Brand - Eagle Taxi (commission based taxi) Eagle Taxi has operated since early 2014. We have 500 units by end of year 2014. Utilization of Mall’s Parking Lot as Taxi Depot Taxi depots for Eagle Taxi are now located at empty parking lot of malls, such as Kuningan City and WTC Mangga Dua. Having t
Slide 42: Improvement of Call Center; Launching of Express Card
Improvement of Call Center All of the Call Center activities are now run by VADS (outsourcing) in Jakarta and Yogyakarta. This will help to improve the Call Center activities to serve the customers at best. Launching of Express Card Express Card was launched in June 2014. We have approached several
Slide 43: Launching of Express Now (Mobile Apps)
Launching of Express Now (Mobile Apps) We have launched Mobile Applications “Taksi Express” and “Express Now” to the market. This applications ease our customers to book taxi through their smartphones. Taksi Express facilitates customer to book a taxi at a later time and location that they wish, whi
Slide 44: Cooperation with Grab Taxi
Cooperation with Grab Taxi POTENTIAL BENEFITS Taxi Fleet Operators Taxi Drivers Passengers Offers a cost-effective technology that The platform will enable drivers to earn Taxi users are primarily looking for greater provides a differentiating factor for fleets, more money by sending more passenger
Slide 45: Cash Handling Machine; Shipping Container Offices
Installation of Cash Handling Machine at Taxi Depots We have installed the cash handling machines at our 25 taxi depots since September 2014. These machines operate 24-hours and become a solution for drivers to anytime deposit their daily taxi fixed tariff to the cashier at every taxi depots. Use of
Slide 46: Purchase of Lands as Taxi Depot
Purchase of Lands as Taxi Depot In 2014, the Company bought 2 lands at: 1. Tangerang (1.2 hectares) 2. Cibubur (9.2 hectares) Those lands will be used for: 1. Taxi depots for Eagle Taxi (commission based taxi) and Eagle High (bus) 2. Training site for taxi drivers Due Diligence Meeting & Public Expo
Slide 47: Multi-Level-Marketing Hiring Program (ProKB)
Implementation of Multi-Level-Marketing Hiring Program Program Kemitraan Berjenjang (ProKB) ProKB is a driver recruitment system which adopts the multi-level-marketing system, with minimum of 2 binaries and depth of 10 levels down. This program is open to internal staff (including existing drivers)
Slide 48: Infrastructures Improvement Plan in 2015
Infrastructures Improvement Plan in 2015 We will overhaul our infrastructures in 2015 as follow: a. ERP System b. Rapid Dispatch System (RDS) c. Passenger Censor d. Car Hire Due Diligence Meeting & Public Expose 47
Slide 49: ERP System
ERP System The Company is currently planning to develop an upgraded operational system using web-based application with Cloud technology (cooperate with Microsoft) to create real-time and accurate data, in term of processing and recording driver‟s deposits, driver master data, vehicle and its licens
Slide 50: Rapid Dispatch System (RDS)
Rapid Dispatch System (RDS) Consolidating major taxi devices into one device (tablet). Fully integrated into central server for real-time fleet monitoring. Easy over-the-air application and taxi rate upgrade. Multiple rate accuracy check. Cheaper but more accurate system. Easier to maint
Slide 51: Passenger Censor
Passenger Censor Passenger Censor is a device planted in the taxi vehicle, to detect and measure the passengers inside our taxi vehicles. This is to prevent drivers from cheating the passengers without the taxi meter being run. The system will be integrated will our centralized system in centr
Slide 52: Car Hire
Car Hire Carhire is a web-based fleet management system that helps the Company to increase the effectiveness and efficiency of order booking, vehicle monitoring, invoicing, rental agreement issuance, etc. for Bus & Limousine services. Due Diligence Meeting & Public Expose 51
Slide 53: Car Hire
Car Hire Implementing this system will enabling us to monitor the efficiency of our VATB business line‟s in its operational and financial activities, especially for our new business unit (Bus). Due Diligence Meeting & Public Expose 52
Slide 54: Due Diligence Meeting & Public Expose
Presentation2 PT Express Transindo Utama Tbk Gedung Express Jl. Sukarjo Wiryopranoto No.11 Jakarta 11160 Telepon : (021) 2650 7000 Faksmili : (021) 2650 7008 Email : investor.relation@expressgroup.co.id Website : www.expressgroup.co.id Due Diligence Meeting & Public Expose 53
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