Pt Mega Manunggal Property Tbk · IDX:MMLP
Pt Mega Manunggal Property Tbk — Q3 2020 Earnings Presentation
68 slides from Pt Mega Manunggal Property Tbk's earnings presentation, September 2020
Slide 1: PT Mega Manunggal Property Tbk
PT Mega Manunggal Property Tbk SEPTEMBER 2020 1
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Slide 4: Disclaimer
Disclaimer The information contained in this presentation has been prepared by PT Mega Manunggal Property Tbk. (the “Company”) and is being furnished to you solely for your information and may not be reproduced or redistributed to any other person, in whole or in part in any manners or for any purpo
Slide 5: Agenda Presentation
Agenda Presentation Section Pages 1 Who we are 6 2 Growth strategy 17 3 On the right track 23 4 Strong growth opportunity 28 5 Key financial 47 6 Assets in details 53 7 Other financial info 65 5
Slide 6: Section 1 Who We Are
Section 1 Who We Are 6
Slide 7: Company At A Glance
Company At A Glance Overview Projects Facilities Currently MMP have 11 assets under PT. Mega Manunggal Property Tbk management in many different strategic Facilities of PT. Mega Manunggal -“MMP”) is a warehouse provider locations: Property Tbk are developed with that supports industrial property spe
Slide 8: Structure of PT Mega Manunggal Property Tbk
Structure of PT Mega Manunggal Property Tbk PT Mega Manunggal Manulife Keppel Property Tbk 30% 99.50% 99.76% 70% 24.9% 75.1% PT Intirub PT Mega Tridaya PT Indo Log Advisory Keppel-MMP Properti 100% 32.1% 42.6% Indolog Pte Ltd 99.40% 99.40% 55.00% PT Mega 25.3% 45.00% PT Mega Jaya Cakrawala PT Mega K
Slide 9: Board of Directors
Board of Directors Hungkang Sutedja President Director Has been appointed as the Independent Director since 2020. He earned Bachelor of Finance degree from University of Missouri, Columbia, United States (1993). Currently he also serves a number of strategic positions in several other companies, Com
Slide 10: Company Milestone
Company Milestone Lazada OCTOBER 2017 LAZADA phase 2 project storted Ready for SEPTEMBER 208 round Breaking MMPs Bihan 7th Marhuce rojet ea CILEUNGS! WAREHOUSE} FEBRUARY 2018 BLOCK AE WAREHOUSE Reatly for lease AUGUST 2018 083 Project started uy 2018 OCTOBER 2018 NANYAR WAREHOUSE NIELS Project start
Slide 11: Investment Consideration
Investment Consideration 1 Provider of high quality and international standard logistic properties 2 Proven track record in developing and delivering logistic properties 3 Solid business model that provides stable and recurring cash flow 4 Strategically located logistic properties in Indonesia 5 Div
Slide 12: Provider of high quality and international standard logistic properties
1. Provider of high quality and international standard logistic properties We are the first mover in provider of modern logistic property, focusing on developing, owning and operating logistic properties, with a focus in warehousing that specifically meet international standards Typical specificatio
Slide 13: Proven track record in developing and delivering logistic properties
2. Proven track record in developing and delivering logistic properties MMP has proven track record in acquiring land and developing logistic properties, which generally takes around 9 to 18 months to complete construction. Growth in NLA in the past years NLA 500,000 98.2% 99.9% 99.9% 99.6% 98.6% 92
Slide 14: Solid business model that provides stable and recurring cash flow
3. Solid business model that provides stable and recurring cash flow MMP focuses towards developing warehouse with size of 10.000 to 100.000 m2. Stable operating cash flow with greater upside potential from improving economy cycle, while at the same time sheltered against downside risks from eco
Slide 15: Strategically located logistic property in Indonesia
4. Strategically located logistic property in Indonesia Located in Java Island that is the centre for industries with the largest industrial estates in Indonesia Bangka Near centre of production and consumption Kaltim 3% Belitung 5% Sulsel Kaltim Sumbar2% 1% Sulsel Sulte… Jakarta, Sumut 0% 2% Bant
Slide 16: Diversified and strong client base
5. Diversified and strong client base Tenant profile of MMP’s logistic properties as of Sept 2020 Clients Logistic E- commerce 1% 5% 28% 27% Automotive Manufacturing 39% Manufacture Logistics E-commerce Trading Others 16
Slide 17: Section 2 Growth Strategy
Section 2 Growth Strategy 17
Slide 18: A strategy that focuses on three factors of success
A strategy that focuses on three factors of success to reach scalable size Our strategy is simplified into three factors – funding, efficiency and volume. Timely ability to seek flexible funding structure and continues effort to reduce cost will maximize yield to cost. This will lead to greater prof
Slide 19: Focus in built to suit warehouse
Focus in built to suit warehouse Facts MMP has track record to complete complex construction Increase profitability Our capabilities to build high specification warehouses: Increase recurring revenue - Superflat floors - Double decker warehouse Results in higher margin since majority of th
Slide 20: Our corporate structure allows for flexible funding
Our corporate structure allows for flexible funding Our corporate structure allows for flexible funding structure. Partnership with largest logistic properties developers in the world would expedite the development of the properties and ensure that funding is met on timely basis. We have secured p
Slide 21: Continuous effort to cut costs amid aggressive capacity expansion
Continuous effort to cut costs amid aggressive capacity expansion We have successfully cut down our construction cost by 10% on recent development plan We set our yield to cost for at least of 9-10% Efficiency Our formula is to have land cost for 1/3 of total cost We strengthen our engineers
Slide 22: Continue to improve operating efficiency
Continue to improve operating efficiency Integrated IT platform Reducing cost Investing in operating system to release some of the Outsourcing to support our services including cleaning service, operational bottleneck and to improve our productivity parking etc. Implement a unified database fo
Slide 23: Section 3 Projects Under Development
Section 3 Projects Under Development 23
Slide 24: Projects Under Development
Projects Under Development Currently we have 3 (three) projects under construction for approximately 160,000 m2 NLA warehouses, including Osowilangun, Manyar, and Pondok Ungu projects. Location: Manyar, East Java Location : Pondok Ungu, Bekasi Location : Osowilangun, East Java Land area : 114,614 m2
Slide 25: Current pipelines on track to achieve our NLA targets
Current pipelines on track to achieve our NLA targets Inquiries that could lead our 600,000m2 NLA target to be achieved. Achieving this requires approximately Rp1.2trn of capital expenditure. We undertake a strict and proper KYC process in selecting tenants as it is very essential to have good track
Slide 26: Values created from existing assets
Values created from existing assets Existing operating assets generate high yield to cost • Annualized for Q3 2020 4,500 20.0% 17.6% 4,000 17.1% 18.0% 16.8% 15.2% 16.0% 3,500 13.3% 13.1% 14.0% 3,000 12.4% 12.0% 2,500 10.0% 8.7% 8.7% 2,000 8.4% 8.4% 7.8% 7.5% 7.6% 7.5% 8.0% 6.2% 1,500 6.0% 1,000 4.0%
Slide 27: Section 4 Strong Growth Opportunity
Section 4 Strong Growth Opportunity 27
Slide 28: Evolution of the logistics sector
Evolution of the logistics sector The logistics sector in Indonesia remains nascent in comparison to other markets in the region, particularly compared to more mature markets such as Singapore and Australia. Notwithstanding this, the growth potential is huge and there are signs of a fundamental
Slide 29: Evolution of the logistics sector
Evolution of the logistics sector • The logistics sector has seen gradual development in recent times. • However, at present most supply chain operations remain largely inefficient. • Only in recent years has the market begun to evolve from the traditional ‘gudang’ style of warehouse to modern logis
Slide 30: Demand Situation
Demand Situation a! 700,000 93% 97% gig 109% 93% 100% | mu | ° 86% 90% | 20% 600,000 . i aan Almost half of the _ 500,000 70% modern warehouse : | space is occupied by — 400,000 Gh I 3PLs 0% ! 60% § 300,000 | | Ea | 50% 20% | 40% ti) 40% Due to the build to suit = | P| nature of the market, | oO 0%
Slide 31: A nascent industry to enter
A nascent industry to enter Logistic cost as % of total GDP 26% 19% 14% 13% 9% 8% 9% 2016 2020 2035 Singapore Malaysia Japan South Korea 31
Slide 32: Asia logistics, industrial yields and rentals
Asia logistics, industrial yields and rentals Asia logistics / industrial yields by key centres Asia logistics / industrial rentals by key markets 25 12% 12% 10% 10% 10% 20 Yield (%per annum) 8% 8% 15 5% 5% 5% 6% 6% 10 4% 3% 4% 4% 5 2% 2% 0% 0 0% 0% HongkongSingapore Tokyo Delhi Shanghai Beijing Gua
Slide 33: Asia Logistics / Industrial Rental
Asia Logistics / Industrial Rental Capitalization rates for logistic properties in Asia The average industrial capitalization rate in Asia fell to an all-time low of 5.8% in 2Q 2012; but edged up again to 7.1% in 1Q 2013, according to statistics provided by RCA. The increase in cap rates reflect
Slide 34: High logistic cost demand better infrastructures
High logistic cost demand better infrastructures “Besides the very high cost, logistic services in Indonesia are also bad like intervals in Indonesia for imported commodities requiring 5.5 days and transportation is also very costly” – The Indonesia Chamber of Commerce and Industry (Kadin) “Indonesi
Slide 35: Progress of Toll Road Projects
Progress of Toll Road Projects Non Trans Jawa 100 120 80 100 60 80 40 60 40 20 20 0 0 Cileunyi- Krian-Legundi- Pandaan- Balikpapan- Serang- Ciawi-Sukabumi Sumedang- Manado-Bitung AP Pettarani Bunder-Manyar Malang Samarinda Panimbang Dawuan 1 2 3 4 5 6 7 8 Km (RHS) 54 60.1 38.29 38.48 99.35 39 83.68
Slide 36: Progress of Toll Road Projects
Progress of Toll Road Projects No Jabodetabek Km (RHS) Land % Physical % 1 Cengkareng-Kunciran 11 63.96 52.52 2 Kunciran-Serpong 10.14 98.7 88.76 3 Serpong-Cinere 11.19 79.23 56.55 4 Cinere-Jagorawi 14.64 65.73 62.6 5 Cimanggis-Cibitung 26.5 70.45 10.47 6 Cibitung-Cilincing 32.76 76.63 48.07 7 Depok
Slide 37: Attractiveness of Greater Jakarta Connectivity and Established Infrastructures
Attractiveness of Greater Jakarta Connectivity and Established Infrastructures Toll Roads Railways Airports Greater Jakarta has been Greater Jakarta has integrated Jakarta is also supported by connected by 18 toll roads with railways transportation, which two major airports which length of 292
Slide 38: Attractiveness of the locations - Connectivity
Attractiveness of the locations - Connectivity In the near future, Gresik, Sidoarjo, and Surabaya will become our expansion target Greater Surabaya Key Industry Served :FMCG, FnB, Electronic, Chemicals Tanjung Perak Port 6 Km 21 Km 22 Km Juanda air Port 35 Km In terms of land prices and availability
Slide 39: Industries driving the demand for logistics
Industries driving the demand for logistics Healthy Growth in FMCGs and Retail Urbanization and growing wealth is already translating into growth in the FMCG sector and retail sales. This will increase the appeal of the logistics real estate market to a broader spectrum of modern international logis
Slide 40: Indonesia Manufacturing Industry Snapshot
Indonesia Manufacturing Industry Snapshot Growth Drivers Market Restraints 1. Positive demographics profile 1. Slowing in global economy 2. Robust economic growth 2. Poor logistics infrastructure 3. Large number of middle income class 3. High logistics cost 4. High degree of consumption 4. Regulatio
Slide 41: Indonesia E-Commerce Market Snapshot
Indonesia E-Commerce Market Snapshot Growth Drivers Market Restraints 1. Positive demographics profile 1. Poor logistics infrastructure 2. Robust economic growth 2. Large unbanked population 3. High ICT adoption 3. Low adoption of cashless payment 4. Large number of local players 4. Limited ICT comp
Slide 42: Indonesia continues to be an attractive target for FDI
Indonesia continues to be an attractive target for FDI Competitive wages and large domestic market makes Indonesia to be an attractive target for FDI in ASEAN Resilient economy growth and large domestic market are expected to boost investment in Indonesia Rising middle class income Low growth, large
Slide 43: Riding along with the growing E-commerce in Indonesia
Riding along with the growing E-commerce in Indonesia The Indonesian population has a large online presence. Internet and mobile internet traffic has increased significantly. While the e-commerce phenomenon has taken hold in many other markets in the region, the sector is still in its infancy in Ind
Slide 44: Section 5 Key Financial
Section 5 Key Financial 44
Slide 45: Solid revenues growth
Solid revenues growth MMP has successfully posted revenue Rp268 bn in Q3 20 supported by stable NLA and occupancy rate. Currently, our NLA stood at 450,827 sqm. Development of NLA and Occupancy Rate 500,000 99.9% 99.9% 99.6% 98.6% 450,827 100.0% 98.2% 450,000 95.0% 92.9% 400,000 90.0% 340,001 350,00
Slide 46: Summary of profit and loss
Summary of profit and loss Aside from recurring income from leasing its own logistic properties, MMP also has recurring value creation from recognition over increase in fair value of investment properties. Each investment properties that have been completed will be measured at fair value. Summary of
Slide 47: Summary of Financial Position
Summary of Financial Position Investment properties that is measured in the fair value is the largest component of asset in the summary of financial position of MMP. From liability side, MMP is currently sourcing its financing from the equity, debt and bank loan. With strong value creation from inve
Slide 48: Summary of financial position
Summary of financial position Revenues, Rp bn EBITDA, Rp bn 300.0 334.0 249.5 299.2 250.0 220.2 267.9 245.0 192.4 185.7 208.8 200.0 175.3 145.9 163.5 150.0 122.9 120.8 100.0 50.0 2015 2016 2017 2018 2019 Q3 20 Q3 19 - 2015 2016 2017 2018 2019 Q3 20 Q3 19 Equity, Rp bn Gross Capital Expenditure, Rp b
Slide 49: Key performance matrix
Key performance matrix 2015 2016 2017 2018 2019 Q3 20 Net Leasable Area, m2 Built to suit 117,520 117,520 185,355 185,355 223,084 288,622 Multi tenants 52,011 46,391 45,015 115,325 116,917 162,205 Operational metric Total, m2 163,911 163,911 230,370 300,680 340,001 450,827 Occupancy rate, % Built to
Slide 50: Section 6 Assets in Details
Section 6 Assets in Details 50
Slide 51: Location MMP's logistic properties and pipeline
Location MMP’s logistic properties and pipeline Tanjung Priok Seaport Industrial Estate Soek arno-Hatta Ex pansion Area Int’ l Airport Airport warehouse Pondok Ungu warehouse Intirub Business Park Halim PK Airport MM2100 Jababeka LF Warehouse Delta Silicon Cibatu Warehouse Selayar Warehouse Block AE
Slide 52: Location MMP's logistic properties and pipeline
Location MMP’s logistic properties and pipeline MMP properties Tanjung Perak Port Juanda Air Port Toll Roads In Operation Under construction Planning In (Km) Manyar Warehouse Distance to Surabaya 31 Distance to Airport 52 Distance to Tanjung Perak Port 29 52
Slide 53: Unilever Mega DC Warehouse
Unilever Mega DC Warehouse Location : MM2100 industrial estates, West Cikarang, Bekasi Land area : 197.690 m2 Gross floor area : 156.462 m2 NLA : 90.288 m2 Lease period : 10 years, with an option to extend another 10 years Operator : PT Linfox Logistics Indonesia Floor capacity : 6 ton per m2 Ceilin
Slide 54: Li & Fung Warehouse
Li & Fung Warehouse Location : M2100 industrial estates, West Cikarang, Bekasi Land area : 34.637 m2 Gross floor area : 21.702 m2 NLA : 21.612 m2 Lease period : 5 years, with option to extend for another 5 years Floor capacity : 6 ton per m2 Ceiling height : 11 m (center 12,5 m) Tenant : PT LF Servi
Slide 55: Intirub Busines Park I & II Warehouse
Intirub Busines Park I & II Warehouse Intirub Business Park Location : Halim, East Jakarta Land area : 57.894 m2 Gross floor area : 53.305 m2 (warehouse) + 11.151 m2 (office) NLA : 36.622 m2 (warehouse) + 8.393 m2 (office) Floor capacity : up to 4,5 ton per m2 Ceiling height : 10 m (IBP I) 9 m (IBP
Slide 56: Selayar Warehouse
Selayar Warehouse Location : MM2100 industrial estates, West Cikarang, Bekasi Land area : 9.164 m2 Gross floor area : 5.742 m2 NLA : 5.620 m2 Floor capacity : 4 ton per m2 Ceiling height : 9 m (center 13 m) Special specifications : 6 loading doors with 2 loading dock levelers Tenants : Windu Persada
Slide 57: Lazada Warehouse
Lazada Warehouse Location : Tapos, Depok Land area : 90.041 m2 NLA : +/- 67.000 m2 (phase 1 and phase 2) Lease period : 10 years, with option to extend for another 5 years Floor capacity : 4 ton per m2 Ceiling height : 12 m (center 16m) Tenant : Lazada Specification: - Flat floor; - Parking Area & B
Slide 58: Cibatu Warehouse
Cibatu Warehouse Location : Scientia Boulevard, Jababeka V Mechanical/Electrical Specification: Cikarang - Sprinkler : Yes Land area : 50,000 m2 - Smoke Detector : Beam Detector Net Leasable Area : 36,335 m2 - Artificial Lighting : 100 lux (Warehouse) Lease period : 10 years - Generator Set : 400 KV
Slide 59: Block AE Warehouse
Block AE Warehouse Location : MM2100 Industrial Estates, West Cikarang, Bekasi Land Area : 35,740 m2 Net Leasable Area : 38,854 m2 Cawang Completion Year : 2018 Intersection Cikunir Intersection Architectural & Structural Specification: -Floor Load Capacity : 4 ton/m2 (Ground Floor) MM2100 3 ton/m2
Slide 60: Cileungsi Warehouse
Cileungsi Warehouse Location : Jl Raya Narogong KM 17, Cielungsi Mechanical/Electrical Specification: Land area : 50,004 m2 - Sprinkler : yes Net Leasable Area : 31,456 m2 - Smoke Detector : yes -laser beam detector Lease period : 10 years - Artificial Lighting : 120 lux – 150 lux Tenant : Ark Logis
Slide 61: Delta Silicon III Warehouse
Delta Silicon III Warehouse Location : Delta Silicon 3, Cikarang Land area : 100.000 m2 NLA : +/- 67.475 m2 (phase 1, 2 and 3) Lease period : 10 years Floor capacity : 4 ton per m2 Ceiling height : 14 m Tenant : DHL Specification: Floor : Reinforced Concrete, flatness FF30 FL 25 Foundation : Concret
Slide 62: Jababeka Warehouse
Jababeka Warehouse Location : Jababeka, Bekasi Land area : 49,351 m2 NLA : +/- 31,680 m2 Floor capacity : 4 ton per m2 Ceiling height : 14 m Specification: Floor : Reinforced Concrete, flatness FF30 FL 25 Foundation : Concrete pile with pile‐cap Slab/Column/Beam : Steel Truss Canopy : Steel Truss 62
Slide 63: Manyar Phase I Warehouse
Manyar Phase I Warehouse Location : Manyar, East Java Land area : 22,755 m2 NLA : +/- 13,680 m2 Floor capacity : 3.5 ton per m2 Ceiling height : 12 m Specification: Floor : Reinforced Concrete, flatness FF30 FL 25 Foundation : Concrete pile with pile‐cap Slab/Column/Beam : Steel Truss Canopy : Steel
Slide 64: Section 7 Other Financial Info
Section 7 Other Financial Info 64
Slide 65: Audited Balance Sheet
Audited Balance Sheet In Rp mn 2015 2016 2017 2018 2019 Q3'20* % YTD Cash and Equivalents 382,973 104,683 201,516 152,175 129,320 1,213,228 838% Other current assets 127,100 92,962 189,163 245,981 438,046 661,744 51.1% Property & equipment 13,483 13,342 12,327 11,917 8,213 2,612 (68.2)% Investment p
Slide 66: Audited Profit and Loss Statement
Audited Profit and Loss Statement In Rp mn 2015 2016 2017 2018 2019 Q3'20* Q3 '19* % Y/Y Revenue 163,492 175,320 208,794 299,234 333,987 267,915 245,025 9.3% Cost of revenue 16,059 18,444 20,146 25,396 28,566 22,120 20,341 8.7% Gross profit 147,432 156,875 188,647 273,838 305,421 245,794 224,684 9.4
Slide 67: Audited Cashflow
Audited Cashflow Rp mn 2016 2017 2018 2019 Q3'20* Q3 '19 * % Y/Y Cash flow from operating activities Cash Receipt from Customer 221,769 226,867 348,340 416,182 281,508 330,543 (15%) Payment to Supplier and Others (90,742) (174,166) (126,417) (178,896) (118,553) (149,688) (21%) Tax paid (20,404) (20,
Slide 68: PT Mega Manunggal Property Tbk
PT Mega Manunggal Property Tbk 68
PT Mega Manunggal Property — Q3 2020 Earnings Presentation on 6ix