PT Hanjaya Mandala Sampoerna Tbk · IDX:HMSP
PT Hanjaya Mandala Sampoerna Tbk — Investor Summit and Capital Market Expo 2015
31 slides from PT Hanjaya Mandala Sampoerna Tbk's conference presentation, Nov 13, 2015
Slide 1: Investor Summit and Capital Market Expo 2015
An affiliate of Philip Morris International Investor Summit and Capital Market Expo 2015 November 13, 2015
Slide 2: Forward-Looking and Cautionary Statements
Forward-Looking and Cautionary Statements This presentation has been prepared by the management of PT Hanjaya Mandala Sampoerna Tbk. (“HMS”) solely for use in connection with the presentation to analyst and the public during the Investor Summit and Capital Market Expo 2015 and does not constitute
Slide 3: History of Sampoerna
History of Sampoerna Philip Morris International acquired majority ownership Celebrated 99 years Listed on IDX 2012 2005 2nd family generation 2001 1990 1989 1978 4th family generation 1959 Launch of A Mild 1913 3rd family generation Sampoerna’s Offering Operations started in 1913 by Liem Seeng Tee
Slide 4: Diversity and Experienced
Diversity and Experienced PAUL JANELLE President Director 24 years of experience MICHAEL SANDRITTER TROY MODLIN Director Finance Director Corporate Affairs 21 years of experience 10 years of experience WAYAN MERTASANA TANTRA YOS ADIGUNA GINTING Director Sales Director External Affairs 28 years of ex
Slide 5: Three Hands Philosophy
Three Hands Philosophy Society at large “To be regarded as the most respected company in Indonesia” 5
Slide 6: Cigarette Industry Volume
Cigarette Industry Volume Volume (billion units) +1.9% +8.1% +1.9% +9.8% 308 314 302 280 (1.1%) 232 2011 2012 2013 2014 YTD Sep 2015 2015 Cigarette industry volume expected to be flat vs. 2014 Source: Company Estimates 6
Slide 7: Cigarette Product Category
Cigarette Product Category (s kah tae) (s kah m) (s pe m) SKT Hand-rolled Kretek SKM Machine-made Kretek SPM Whites Share of Market Share of Market Share of Market (YTD Sep 2015) (YTD Sep 2015) (YTD Sep 2015) 19% 75% 6% Non filter Filter No clove Two sub-segments Conically-shaped cigarette
Slide 8: Cigarette Product Category Share of Market
Cigarette Product Category Share of Market (%) – Industry Sampoerna Share Sampoerna of Segment Position YTD Sep 2015 55% 63% 75% SKM 31% 37% 29% SKT 39% 19% 8% 8% 6% SPM 81% 2005 2010 YTD Sep 2015 Shift towards SKM product category Source: Company Estimates 8
Slide 9: Trend of Premiumization
Trend of “Premiumization” Sampoerna Focused on Mid Industry Trend of “Premiumization” and Premium Priced Segment ∆ YTD Sep 2015 vs. 2010 +2.1 pp 35.5% 37.6% 68.5% 99.9% 43.6% +2.7 pp 46.3% (4.8) pp 31.4% 20.9% 16.1% 2010 YTD Sep 2015 YTD Sep 2015 Premium Mid Low Source: Company Estimates 9
Slide 10: Sampoerna is the Market Leader
Sampoerna is the Market Leader Share of Market (%) 35.2% 30.9% Sampoerna 27.4% 26.4% 23.2% 23.2% Gudang Garam 21.2% 19.4% 19.3% Djarum 15.9% 12.3% 11.5% Others 8.8% 5.7% 6.5% BAT 5.5% 3.6% 4.3% Nojorono 2005 2010 YTD Sep 2015 Source: Company Estimates 10
Slide 11: Unmatched Portfolio of Leading Brands
Unmatched Portfolio of Leading Brands Share of Market (%) YTD September 2015 15.0 7.1 5.1 4.9 3.0 SampoernaA GG Sampoerna GGSurya Djarum Surya Djarum Dji DjiSam Marlboro Sam Marlboro U Mild U Mild GG GGFIM FIM Dunhill Dunhill Clas Mild Clas Sampoerna Mild Sampoerna A Super Soe Kretek Super Soe Krete
Slide 12: Sampoerna A
Sampoerna A Share of Market (%) 15.0 14.4 14.4 13.9 Best-selling brand 2012 2013 2014 YTD Sep 2015 Source: Company Estimates and Financials 12
Slide 13: Dji Sam Soe
Dji Sam Soe Share of Market (%) 7.8 0.6 6.8 7.1 6.3 1.1 2.1 3.0 SKM 7.2 5.7 Unparalleled brand 4.2 4.1 SKT equity and heritage 2012 2013 2014 YTD Sep 2015 Source: Company Estimates and Financials 13
Slide 14: Sampoerna U
Sampoerna U Share of Market (%) 5.4 4.9 4.4 3.3 Recently extended to full flavor 2012 2013 2014 YTD Sep 2015 Source: Company Estimates and Financials 14
Slide 15: Sampoerna Kretek
Sampoerna Kretek Share of Market (%) 4.5 4.3 3.4 3.0 Leading mid-price SKT brand 2012 2013 2014 YTD Sep 2015 Source: Company Estimates and Financials 15
Slide 16: Marlboro
Marlboro Share of Market (%) 5.2 5.1 5.1 4.8 Leading international cigarette brand in the world Leading brand in SPM 2012 2013 2014 YTD Sep 2015 Source: Company Estimates and Financials. Note: Marlboro sales via distribution agreement with PMID 16
Slide 17: Balanced Portfolio
Balanced Portfolio SKM (Machine-made Kretek) SKT (Hand-rolled Kretek) SPM (Whites) Premium Price LTLN FF Offering A Mild 16s Dji Sam Soe 12s Marlboro 20s DSS Magnum DSS Magnum 12s Sampoerna Blue 16s Kretek 12s New 2015 U Mild 16s U Bold 12s Mid Price Offering 17
Slide 18: Manufacturing Footprint
Manufacturing Footprint Java 29,700 permanent employees (2014) Balanced production platform – 2 machine-made facilities Karawang – 5 hand-rolled facilities Surabaya (3) Kraksaan – 38 third party operators (TPOs) Malang with 48,400 employees (2014) 2 Machine-Made Manufacturing Centers Sukorejo 5
Slide 19: Sampoerna Extensive Distribution Network
Sampoerna Extensive Distribution Network Strong sales force of >3,600 with touch points across the entire country Sampoerna Distribution Sampoerna SKT TPOs Plants (7) (38) Distribution Centers (6) Distribution Warehouses & Distribution Point Centers (106) 84% 6% 10% Volume contribution General & Mod
Slide 20: Sampoerna Domestic Volume
Sampoerna Domestic Volume (in billion units) CAGR 2010/2014 = 8.7% 111.3 109.7 107.7 Year on Year change 91.7 0.1% 81.8 81.9 78.6 56.6 63.3 69.0 45.4 36.3 51.0 53.2 36.6 31.9 30.3 33.7 24.6 18.6 16.9 12.0 12.6 14.5 16.1 16.1 12.2 11.8 2010 2011 2012 2013 2014 YTD Sep 2014 YTD Sep 2015 Machine-made H
Slide 21: Adjusted Net Revenues
Adjusted Net Revenues (in IDR trillion) CAGR 2010/2014 = 13.6% 38.7 37.5 Year on Year change 7.7% 32.6 30.4 28.2 27.4 23.2 2010 2011 2012 2013 2014 YTD Sep 2014 YTD Sep 2015 Source: Company financials Note: Adjusted Net Revenues are net revenues excluding VAT and excise taxes on SKT, SKM and SPM. 21
Slide 22: Gross Profit and EBITDA
Gross Profit and EBITDA1 (in IDR trillion) 55.5% 56.8% 54.5% 53.5% 53.0% 53.2% 51.8% 40.7% 42.4% 39.7% 40.3% 37.2% 37.9% 35.9% CAGR 2010/2014 Gross Profit = 12.8% Year on Year change EBITDA = 11.8% Gross Profit = 4.9% EBITDA = 1.9% 20.1 20.5 18.5 15.2 15.1 15.0 15.7 13.8 14.4 12.7 11.2 10.7 10.9 9.2
Slide 23: EBITDA
EBITDA Clove prices increased significantly in the past, recent prices have decreased Mixed impact from the shift from SKT to SKM Minimum wages SKT capacity adjustment (IDR 604 billion in Q2 2015) 23
Slide 24: Earnings per Share
Earnings per Share (in IDR) CAGR 2010/2014 = 12.2% 2,468 Year on Year change 2,269 2,323 (0.8%) 1,840 1,747 1,733 1,465 2010 2011 2012 2013 2014 YTD Sep 2014 YTD Sep 2015 2010 – 2014 Net income: IDR 45.4 trillion Source: Company financials 24
Slide 25: Dividends Paid Out During the Year
Dividends Paid Out During the Year Dividend Payout 131.3% 111.9% 95.1% 100.0% 98.4% 120.3% Ratio 12.3 10.7 10.0 7.7 (in IDR trillion) 7.2 6.7 2010 2011 2012 2013 2014 YTD Sep 2015 2010 – YTD Sep 2015 Dividends: IDR 54.5 trillion Source: Company financials Note: Dividend payout ratio = Current year‘s
Slide 26: Growth Model
Growth Model Building-blocks for Profitability Growth (2010-2014 Bridge) 4.9% 13.6% (0.8)% 12.8% (0.6)% 12.2% 3.3% 5.4% Industry Share of Price / Adjusted COGS Gross SG&A EBIT Volume Market Mix Net Profit Costs Revenues1 • Expected • Over indexed to • Track • Robust • Relatively less • Re-investment
Slide 27: Excise Tax 2016
Excise Tax 2016 Excise + Regional Tax (IDR/stick) Cigarette Share of Market (%) Tax Tier Type YTD Sep-2015 2015 2016 Increase (%) V1 P1 64.3% 456.5 528.0 15.7% SKM V2 P1 3.2% 335.5 374.0 11.5% V2 P2 6.4% 291.5 330.0 13.2% V1 P1 5.5% 467.5 544.5 16.5% SPM V2 P1 0.3% 297.0 335.5 13.0% V2 P2 0.8% 242.0
Slide 28: Rights Issue
Rights Issue Comply with minimum 7.5% public float Exercise price at IDR 77,000/share Total gross proceeds IDR 20.768 trillion Price earnings ratio 29x (2016 estimated earnings, syndicate bank consensus) 28
Slide 29: Stock Price Performance
Stock Price Performance HMSP Stock Price (IDR/Share) The largest market capitalization Rights IDR 456 trillion (as of Nov 11, 2015) Issue Average daily transaction value IDR 97,900 339 billion vs. IDR 0.8 billion (pre- deal) (Oct 26 - Nov 11, 2015) Inclusion in MSCI Global Index Gradual incl
Slide 30: Conclusion
Conclusion # 1 market capitalization # 1 leading tobacco company International governance standards Strong brand portfolio Strong financial record 30
Slide 31: Investor Summit and Capital Market Expo 2015
An affiliate of Philip Morris International Investor Summit and Capital Market Expo 2015 November 13, 2015 -- End --
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