Pt Erajaya Swasembada Tbk · IDX:ERAA
Pt Erajaya Swasembada Tbk — 9M 2024 Earnings Presentation
25 slides from Pt Erajaya Swasembada Tbk's earnings presentation, November 2024
Slide 1: Company Update 9M 2024
Company Update 9M 2024 PT ERAJAYA SWASEMBADA TBK | IDX:ERAA
Slide 2: Erajaya Today
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Slide 3: Vast grown retailer & distributor of mobile devices and lifestyle products
Vast grown retailer & distributor of mobile devices and lifestyle products • Est. in 1996 as smartphone • #1 retailer and distributor for • Expansion to new business • Included in several indices: dealer handset and telco business in verticals: Digital, Active JII 70, IDX 80, IDX ESG region wide omn
Slide 4: Extensive coverage across region
Extensive coverage across region 81 distribution centers 2,115 retail outlets +/- 54,000 3rd Party billed Outlets Domestic retail channel International retail channel As of 30 September 2024 Domestic distribution center International distribution center 4
Slide 5: Investment Highlights
A erajaya INVESTMENT HIGHLIGHTS
Slide 6: Key investment highlights
Key investment highlights: 1. The biggest single entity with more than 50% market share of handset business 2. Diversified business portfolio into higher margin businesses such as accessories, IoT, fashion, F&B, and beauty 3. Strong omni-channel infrastructure to create valuable synergy across all b
Slide 7: Erajaya Digital is the biggest single entity with more than 50% market share
1. Erajaya Digital is the biggest single entity with more than 50% market share for handset business Expediting Erajaya Digital retail business CAGR 2019 – 2023: 11% 1,581 1,591 1,620 1,308 1,040 1,002 922 • Store closure setback during early COVID- 19 period due to lockdown . • Momentum from WFH po
Slide 8: Erajaya Digital: biggest handset retail channel nationwide
1. Erajaya Digital is the biggest single entity with more than 50% market share for handset business Started with small store in 1996, now Erajaya turns into the biggest handset retail channel nationwide RETAIL BRAND DOMESTIC: 1,620 stores INTERNATIONAL: 251 stores ERAJAYA OWNED RETAIL BRAND STORE E
Slide 9: Our strategy going forward
1. Erajaya Digital is the biggest single entity with more than 50% market share for handset business Our strategy going forward… BROADEN OUR KEEP ON WIDENING PROVIDE ADDITIONAL TARGET AUDIENCE BRAND PORTFOLIO RETAIL VALUE TO OUR CUSTOMERS • Cater all segments. • Established good & long-term • More t
Slide 10: Erajaya Active Lifestyle
2. Diversified business portfolio into higher margin businesses such as IoT ecosystem, fashion, F&B, and beauty. ERAJAYA ACTIVE LIFESTYLE Focus on lifestyle related products such as IoT ecosystem, accessories, fashion, and active lifestyle with gross margin ~13% BRAND SEGMENT OUR STRATEGY 1. Focus o
Slide 11: Erajaya Beauty & Wellness
2. Diversified business portfolio into higher margin businesses such as IoT ecosystem, fashion, F&B, and beauty. ERAJAYA BEAUTY & WELLNESS Focus on health & beauty business, ~20% gross profit margin RETAIL BRAND B2B OUR STRATEGY 1. Increase brand awareness through marketing and communities activitie
Slide 12: Erajaya Food & Nourishment
2. Diversified business portfolio into higher margin businesses such as IoT ecosystem, fashion, F&B, and beauty. ERAJAYA FOOD & NOURISHMENT Focus on F&B and groceries business, ~20% gross profit margin RETAIL BRAND OUR STRATEGY 1. Continue expansion to grow retail presence across Indonesia GrandLuck
Slide 13: Strong omni-channel infrastructure across business verticals
3. Strong Omni-channel infrastructure to create valuable synergy across all business verticals OUR PLATFORM Synergizing our connected commerce to support business growth across verticals INTEGRATED COMMERCE MARKETPLACE through website & mobile app iBox.co.id JDSports.id CONVERSATIONAL COMMERCE OFFLI
Slide 14: Customer loyalty program membership
3. Strong Omni-channel infrastructure to create valuable synergy across all business verticals is a customer loyalty program that provides the best experience in every transaction you make at Erajaya Group Enhance customer experience to enjoy cross-synergies across Erajaya Group retail channel. Tota
Slide 15: Focus on ESG to create sustainable environment
4. Focus on ESG to create sustainable environment supporting business development SUSTAINALYTICS ESG SCORE 14.36* Support UMKM through expo and bazaar Achieved 10 SDG goals Lentera Cerdas (Education) Support business flow process and business Social donation for Qurban Idul Adha and for Waisak Day n
Slide 16: Operational Update
OPERATIONAL UPDATE A erajaya 16
Slide 17: List of stores by verticals
List of stores by verticals – Total 177 new stores opening in 9M24 Erafone 1,041 Urban Republic 118 INTERNATIONAL BUSINESS 1,017 Republic 121 Samsung 135 96 132 Switch Total Stores ERAJAYA DIGITAL 93 Ibox 163 9M24: 251 116 Others 37 38 9M23: 252 83 Xiaomi 84 Total Stores 76 9M24: 1,620 Gross stores
Slide 18: Increasing channel awareness through various attractive events
Increasing channel awareness through various attractive events GO Erafone & More Papua Erafone Gadget Festival URMazing Run 2024 GO Grandlucky Citraland Surabaya iBoxing Week 2024 PRJ 2024 18
Slide 19: Productivity improvement of new stores led to positive SSSG
Productivity improvement of new stores led to positive SSSG Implementation of initiative strategies into action to boost retail store productivity Widen and improve product portfolio, focusing on the mass market product (affordable price range) Improve the service quality and front-liners in the
Slide 20: Financials
FINANCIALS A erajaya 20
Slide 21: P&L Highlights
P&L Highlights Net Sales (in Rp Billion) Gross Profit (in Rp Billion) 10.1% 10.6% 12.0% 10.5% 11.2% GPM +11.3% 48,608 42,816 +32.4% -5.9% 5,436 +7.0% 4,483 13,919 16,467 15,491 1,406 1,738 1,860 3Q23 2Q24 3Q24 9M23 9M24 3Q23 2Q24 3Q24 9M23 9M24 Operating Profit (in Rp Billion) Net Profit (in Rp Bill
Slide 22: Segmented sales breakdown – 9M24
Segmented sales breakdown – 9M24 Records double digit growth of 13.5% still supported by handset business, however most of other verticals are giving a potential sales uptrend on yearly basis. Sales by Segment Sales by Vertical 42,816 48,608 48,608 42,816 21 11.9% 12.3% 1,316 110 2.8% 4.0% 722 1,674
Slide 23: Consolidated key ratios
Consolidated key ratios Description 9M 2023 9M 2024 CAPEX (IDR billion) 712 491 Inventories (IDR billion) 8,043 8,722 Net Debt (IDR billion) 6,758 6,958 Net Working Capital (IDR billion) 1,385 2,504 Net Debt/Equity (x) 0.87 0.79 Net Working Capital/Net Sales*annualized (%) 2.4% 3.9% ROCE*annualized
Slide 24: Volume & average selling price - Handset
Volume & average selling price - Handset Volume Avg. Selling Price (in Mn units) (in Mn IDR) -0.9% YoY 11.35 +15.1% YoY 10.23 10.03 9.05 8.47 4.78 4.69 4.65 4.28 7.37 3.03 2.54 2020 2021 2022 2023 9M23 9M24 2020 2021 2022 2023 9M23 9M24 24
Slide 25: Email and website
EMAIL: investor.relations@erajaya.com WEBSITE: www.erajaya.com 25
PT Erajaya Swasembada — 9M 2024 Earnings Presentation on 6ix