Pt Mega Manunggal Property Tbk · IDX:MMLP
Pt Mega Manunggal Property Tbk — FY2017 Earnings Presentation
71 slides from Pt Mega Manunggal Property Tbk's earnings presentation, 2018
Slide 1: PT Mega Manunggal Property Tbk
PT Mega Manunggal Property Tbk 1
Slide 2: PT Mega Manunggal Property Tbk
PT Mega Manunggal Property Tbk 2
Slide 3: PT Mega Manunggal Property Tbk
PT Mega Manunggal Property Tbk 3
Slide 4: Disclaimer
Disclaimer PT Mega Manunggal Property Tbk 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
Slide 5: Agenda presentation
Agenda presentation PT Mega Manunggal Property Tbk Section Pages 1 Who we are 6 2 Growth strategy 17 3 On the right track 22 4 Strong growth opportunity 27 5 Key financial 46 6 Assets in details 53 7 Other financial info 65 5
Slide 6: Who We Are
PT Mega Manunggal Property Tbk Section 1 Who We Are 6
Slide 7: Company at a glance
Company at a glance PT Mega Manunggal Property Tbk Overview Facilities Projects PT. Mega Manunggal Property Tbk Facilities of PT. Mega Manunggal Currently MMP has 6 assets in 3 different (“MMP”) is a warehouse provider that Property Tbk are developed with strategic locations: supports industrial pro
Slide 8: Brief profile of MMP's asset structure
Brief profile of PT Mega Manunggal Property Tbk PT Mega Manunggal Property Tbk MMP’s asset structure Unilever Mega DC Bekasi Li & Fung Selayar PT Mega Manunggal Property Tbk 99,5% 99,0% Intirub Business PT Mega Tridaya Halim PT Intirub Park I & II Properti 55.0% PT Mega 45.0% Khatulistiwa GIC Proper
Slide 9: Board of Directors
Board of Directors PT Mega Manunggal Property Tbk Bonny Budi Setiawan President Director Has has been the Company’s Director since 2015 and appointed as the President Director in January 2017. Earned a Bachelor of Business Administration in Accounting and Finance from Simon Fraser University, Canada
Slide 10: Track record of MMP
Track record of MMP PT Mega Manunggal Property Tbk August 2010 April 2012 June 2014 June 2015 August 2015 September 2016 December 2016 October 2017 MMP was Construction of Construction of Ground breaking Initial Public MMP signed lease Ground breaking Ground breaking established Unilever Mega DC Int
Slide 11: Investment consideration
Investment consideration PT Mega Manunggal Property Tbk 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 logisti
Slide 12: Provider of high quality and international standard logistic properties
1. Provider of high quality and international standard logistic properties PT Mega Manunggal Property Tbk 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
Slide 13: Proven track record in developing and delivering logistic properties
2. Proven track record in developing and delivering logistic properties PT Mega Manunggal Property Tbk 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 230,370 C
Slide 14: Solid business model that provides stable and recurring cash flow
3. Solid business model that provides stable and recurring cash flow PT Mega Manunggal Property Tbk Competitive advantages Operating assets that provide recurring and stable cash flow MMP focuses towards developing warehouse with size of Unilever Mega DC Li & Fung 5.000 to 100.000 m2. (operated by
Slide 15: Strategically located logistic property in Indonesia
4. Strategically located logistic property in Indonesia PT Mega Manunggal Property Tbk 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 S
Slide 16: Diversified and strong client base
5. Diversified and strong client base PT Mega Manunggal Property Tbk Tenant profile of MMP’s logistic properties as at 31 Dec 2017 Clients E-commerce Logistic Others 3% E-commerce 19% Logistics 35% Manufacturing Consumption Manufacture 43% 16
Slide 17: Growth Strategy
PT Mega Manunggal Property Tbk 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 PT Mega Manunggal Property Tbk 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.
Slide 19: Focus in built to suit warehouse
Focus in built to suit warehouse PT Mega Manunggal Property Tbk 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 hig
Slide 20: Our corporate structure allows for flexible funding
Our corporate structure allows for flexible funding PT Mega Manunggal Property Tbk 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 ti
Slide 21: Continuous effort to cut costs amid aggressive capacity expansion
Continuous effort to cut costs amid aggressive capacity expansion PT Mega Manunggal Property Tbk 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 cos
Slide 22: Continue to improve operating efficiency
Continue to improve operating efficiency PT Mega Manunggal Property Tbk 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.
Slide 23: On The Right Track
PT Mega Manunggal Property Tbk Section 3 On The Right Track 23
Slide 24: On the right track...
On the right track... PT Mega Manunggal Property Tbk Currently we have 3 (three) projects under construction during 2016-2017 for a total of approximately 105,780 m2 NLA warehouses. Location: MM2100 Industrial estates, West Cikarang, Location: Tapos, Depok (Phase 2) Location:Jl Raya Narogong KM 17,
Slide 25: Current pipelines on track to achieve our NLA targets
Current pipelines on track to achieve our NLA targets PT Mega Manunggal Property Tbk Inquiries that could lead our 500,000m2 NLA target to be achieved within 3-years. Achieving this requires approximately Rp2.5trn of capital expenditure. We undertake a strict and proper KYC process in selecting tena
Slide 26: Values created from existing assets
Values created from existing assets PT Mega Manunggal Property Tbk Existing operating assets generate high yield to cost 3,000.0 20.0% 17.6% 18.0% 2,500.0 16.8% 17.1% 16.0% 15.2% 14.4% 14.0% 2,000.0 12.0% 1,500.0 9.8% 10.0% 8.7% 8.7% 8.4% 8.1% 8.0% 7.8% 1,000.0 5.5% 6.0% 4.0% 500.0 2.0% - 0.0% 2012
Slide 27: Simulation for cash recycle
Simulation for cash recycle PT Mega Manunggal Property Tbk Equity value of Unilever has grown 2x over 5 years 1,000.0 945.8 800.0 600.0 400.0 445.5 200.0 - 2012 2017 Cash recycle is earnings lucrative. If we were to recycle Unilever WDC and invest in 10% yield warehouse, EBITDA is expected to increa
Slide 28: Strong Growth Opportunity
PT Mega Manunggal Property Tbk Section 4 Strong Growth Opportunity 29
Slide 29: Evolution of the logistics sector
Evolution of the logistics sector PT Mega Manunggal Property Tbk 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 th
Slide 30: Evolution of the logistics sector
Evolution of the logistics sector PT Mega Manunggal Property Tbk • 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’ sty
Slide 31: A nascent industry to enter
A nascent industry to enter PT Mega Manunggal Property Tbk Logistic cost as % of total GDP 26% 19% 14% 13% 9% 8% 9% 2016 2020 2035 Singapore Malaysia Japan South Korea 32
Slide 32: The Potential Opportunity
The Potential Opportunity PT Mega Manunggal Property Tbk Economic Growth and Scale Recent disruptions in the commodities markets hit the Indonesian economy hard, but government spending began to pick up in 2015, economic growth started to improve and Indonesia remains the largest economy in Southeas
Slide 33: Asia logistics, industrial yields and rentals
Asia logistics, industrial yields and rentals PT Mega Manunggal Property Tbk 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 T
Slide 34: Asia Logistics / Industrial Rental
Asia Logistics / Industrial Rental PT Mega Manunggal Property Tbk 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. Th
Slide 35: High logistic cost demand better infrastructures
High logistic cost demand better infrastructures PT Mega Manunggal Property Tbk “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
Slide 36: Future toll road that will create value to our properties
Future toll road that will create value to our properties PT Mega Manunggal Property Tbk 37
Slide 37: Attractiveness of Greater Jakarta Connectivity and Established Infrastructures
Attractiveness of Greater Jakarta Connectivity and Established Infrastructures PT Mega Manunggal Property Tbk 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 maj
Slide 38: Attractiveness of the Locations – Connectivity
Attractiveness of the Locations – Connectivity PT Mega Manunggal Property Tbk 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
Slide 39: Industries driving the demand for logistics
Industries driving the demand for logistics PT Mega Manunggal Property Tbk Healthy Growth in FMCGs and Retail Urbanisation 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 spectru
Slide 40: Indonesia Manufacturing Industry Snapshot
Indonesia Manufacturing Industry Snapshot PT Mega Manunggal Property Tbk 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 deg
Slide 41: Indonesia e-Commerce Market Snapshot
Indonesia e-Commerce Market Snapshot PT Mega Manunggal Property Tbk 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 lo
Slide 42: Government's investment on infrastructure will boost efficiency
Government’s investment on infrastructure will boost efficiency for wholesale, retail, and automotive sector PT Mega Manunggal Property Tbk Greater Jakarta GDRP by Key Industries, 2015 (% of GDRP) IDR 257.64 Tn • Wholesale, retail, and automotive sector was 17.0 percent of 2015 GDRP equivalent to ID
Slide 43: Infrastructure initiatives help boost economic improvement
Infrastructure initiatives help boost economic improvement PT Mega Manunggal Property Tbk Growth of Service Segment 2011- 2016 (f) Government investment plan and initiatives on infrastructure sector are expected to reach IDR 313 trillion in 2016, approximately 8.0% increase from 2015. GDP’s share fo
Slide 44: Indonesia continues to be an attractive target for FDI
Indonesia continues to be an attractive target for FDI PT Mega Manunggal Property Tbk 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
Slide 45: Demand and land price overview in industry property
Demand and land price overview in industry property PT Mega Manunggal Property Tbk This shows that demand for warehouse complex in Jabodetabek area is still growing, which this will be great opportunity to invest in the area. Stable land prices over the year encourages acquisition of new lands to sa
Slide 46: Riding along with the growing E-commerce in Indonesia
Riding along with the growing E-commerce in Indonesia PT Mega Manunggal Property Tbk 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
Slide 47: Key Financial
PT Mega Manunggal Property Tbk Section 5 Key Financial 48
Slide 48: Solid revenues growth
Solid revenues growth PT Mega Manunggal Property Tbk MMP has successfully posted revenue Rp208.8 bn in FY17 supported by stable NLA and occupancy rate. Currently, our NLA stood at 230,370 m 2. Development of NLA and Occupancy Rate Each asset contribution towards revenues 250,000 105% 100% 100% 100%
Slide 49: Summary of profit and loss
Summary of profit and loss PT Mega Manunggal Property Tbk 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 mea
Slide 50: Summary of financial position
Summary of financial position PT Mega Manunggal Property Tbk 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
Slide 51: Summary of financial position
Summary of financial position PT Mega Manunggal Property Tbk Revenues, Rp bn EBITDA, Rp bn 145.9 208.8 115.1 122.9 120.8 163.5 175.3 106.3 141.9 IDR miliar 119.5 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Revenues Equity, Rp bn Gross Capital Expenditure for investment property only, Rp bn 1,1
Slide 52: Key performance matrix
Key performance matrix PT Mega Manunggal Property Tbk 2013 2014 2015 2016 2017 Net Leasable Area, m2 Built to suit 111,900 111,900 111,900 111,900 179,735 Multi tenants 27,911 51,857 52,011 52,011 50,635 Operational metric Total, m2 139,811 163,757 163,911 163,911 230,994 Occupancy rate, % Built to
Slide 53: Revenues breakdown
Revenues breakdown PT Mega Manunggal Property Tbk Revenues breakdown Net leasable composition area As of 31 Dec 2017 Multi Tenants, 35% Built to suit , 65% Built to suit warehouses account for two third of total revenues Revenue IDR Bn 208.8 250 175.3 163.5 200 141.9 119.5 72.5 150 69.0 42.8 63.6 10
Slide 54: Assets in Details
PT Mega Manunggal Property Tbk Section 6 Assets in Details 55
Slide 55: Location MMP's logistic properties and pipeline
Location MMP’s logistic properties and pipeline PT Mega Manunggal Property Tbk Tanjung Priok Seaport Industrial Estate Soekarno-Hatta Expansion Area Int’l Airport Airport warehouse Pondok Ungu warehouse Intirub Business Park Halim PK Airport MM2100 Jababeka LF Warehouse Delta Silicon Cibatu Warehous
Slide 56: Location MMP's logistic properties and pipeline
Location MMP’s logistic properties and pipeline PT Mega Manunggal Property Tbk 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 57 Distance to Tanjung Perak Port 29
Slide 57: Logistic property profile – Unilever Mega DC
Logistic property profile – Unilever Mega DC PT Mega Manunggal Property Tbk Location : MM2100 industrial estates, West Cikarang, Bekasi Land area : 194.297 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 Logisti
Slide 58: Logistic property profile – Li & Fung
Logistic property profile – Li & Fung PT Mega Manunggal Property Tbk 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 h
Slide 59: Logistic property profile – Intirub Business Park I & II
Logistic property profile – Intirub Busines Park I & II PT Mega Manunggal Property Tbk Intirub Business Park I Location : Halim, East Jakarta Land area : 28.195 m2 Gross floor area : 30.086 m2 (warehouse) + 5.455 m2 (office) NLA : 23.397 m2 (warehouse) + 4.639 m2 (office) Floor capacity : up to 4,5
Slide 60: Property logistic profile – Selayar
Property logistic profile – Selayar PT Mega Manunggal Property Tbk 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 wit
Slide 61: Property logistic profile – Lazada
Property logistic profile – Lazada PT Mega Manunggal Property Tbk Location : Tapos, Depok Land area : 90.180 m2 Gross floor area : +/- 62.000 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) T
Slide 62: Property Profile – Cibatu Warehouse
Property Profile – Cibatu Warehouse PT Mega Manunggal Property Tbk Location : Scientia Boulevard, Jababeka V Mechanical/Electrical Specification: Cikarang - Sprinkler : Yes Land area : 50,000 m2 - Smoke Detector : Beam Detector Net Leasable Area : 36,216 m2 - Artificial Lighting : 100 lux (Warehouse
Slide 63: Building value delivering result
Building value delivering result PT Mega Manunggal Property Tbk From Abandoned Factory In progress to become the largest DC for LAZADA Indonesia 63
Slide 64: Property Profile – AE Warehouse
Property Profile – AE Warehouse PT Mega Manunggal Property Tbk Location : MM2100 Industrial Estates, West Cikarang, Bekasi Land Area : 35,740 m2 Net Leasable Area : 21,328 m2 (ground floor) Cawang 18,718 per m2 (upper floor) Intersection Estimated Completion Year : 2017 Cikunir Intersection Architec
Slide 65: Property Profile – Cileungsi Warehouse
Property Profile – Cileungsi Warehouse PT Mega Manunggal Property Tbk Location : Jl Raya Narogong KM 17, Cielungsi Mechanical/Electrical Specification: Land area : 50,000 m2 - Sprinkler : yes Net Leasable Area : 31,392 m2 - Smoke Detector : yes (laser beam detector Lease period : 10 years - Artifici
Slide 66: Other Financial Info
PT Mega Manunggal Property Tbk Section 7 Other Financial Info 67
Slide 67: Audited Balance Sheet
Audited Balance Sheet PT Mega Manunggal Property Tbk Year to Dec 31, Rp mn 2013 2014 2015 2016 2017 % YtD Cash and Equivalents 6,368 11,311 382,973 104,683 93% 201,516 Other current assets 72,054 57,381 127,100 92,962 180,651 94% Property & equipment 1,236 2,107 13,483 13,342 12,327 -8% Investment p
Slide 68: Audited Profit and Loss Statement
Audited Profit and Loss Statement PT Mega Manunggal Property Tbk Year to Dec 31, Rp mn 2013 2014 2015 2016 2017 % Y/Y Revenue 119,486 141,918 163,492 175,320 208,794 19% Cost of revenue 5,940 13,084 16,059 18,444 20,146 9% Gross profit 113,546 128,834 147,432 156,875 188,647 20% G&A 7,944 14,616 25,
Slide 69: Audited Cashflow
Audited Cashflow PT Mega Manunggal Property Tbk Rp mn 2016 2017 %Y/Y Cash flow from operating activities Cash Receipt from Customer 221,769 226,867 2% Payment to Supplier and Others (53,098) (131,671) 148% Tax paid (20,404) (20,594) 1% Interest paid (49,175) (52,925) 8% Net cash provided by operatin
Slide 70: Thank you
PT Mega Manunggal Property Tbk End of presentation Thank you
Slide 71: PT Mega Manunggal Property Tbk
PT Mega Manunggal Property Tbk
PT Mega Manunggal Property — FY2017 Earnings Presentation on 6ix