Pt Mitra Adiperkasa Tbk · IDX:MAPI
Pt Mitra Adiperkasa Tbk — Q3 2020 Earnings Presentation
38 slides from Pt Mitra Adiperkasa Tbk's earnings presentation, November 2020
Slide 1: Q3 & 9M Investor Call
SHOPPING FOR EVERYONE Q3 & 9M INVESTOR CALL NOVEMBER 2020 1
Slide 2: Overview: The Way Ahead
OVERVIEW The Way Ahead MAP retail Sports, Fashion, Department stores, Digital Technology, F&B, Travel, Lifestyle & Convenience stores Our diversified portfolio of brands are unified via our MAPclub APP which creates a new shopper dimension by conveying who shops where, when, why & how across the arc
Slide 3: MAP is Shopping for Everyone from dawn to dusk
MAP is SHOPPING FOR EVERYONE from dawn to dusk 3
Slide 4: Milestones
MILESTONES 1995 1997 2002 2003 2004 • Incorporation • Foray into Kids • Diversified into Food & • Ventured into • IPO of MAP (Listed Started with Sports products (toys & Beverage with Department on Indonesia Stock before venturing apparel) Starbucks Coffee Stores Exchange) into Fashion and Lifestyle
Slide 5: Milestones
MILESTONES 2014 2015 2016 2017 2018 • Most Powerful & • Most Admired • Launch of • IPO of MBA (F&B) • IPO of MAA Valuable Company in Companies in MAPEMALL.com • Further expansion in (MAP Active) Indonesia (Retail) Indonesia (Retail) • Launch of MAP Club Vietnam (Zara in Hanoi, – Warta Ekonomi – Wart
Slide 6: Our Values
OUR VALUES We are a P.E.O.P.L.E Oriented Company People Centered Approach Principles We put our customers, employees and the community We subscribe to the highest principles of at the heart of all our business decisions integrity and honesty. Empowerment Loyalty We empower our people with authority.
Slide 7: Organization Structure
ORGANIZATION STRUCTURE BOARD of COMMISSIONERS BOARD of DIRECTORS Sri Indrastuti Hadiputranto H.B.L. Mantiri Independent President Commissioner Independent President Director GBPH. H. Prabukusumo, S.Psi V.P. Sharma Independent Vice President Commissioner Vice President Director Hendry Hasiholan Batub
Slide 8: Shareholder Structure
SHAREHOLDER STRUCTURE PUBLIC 51% PT SATYA MULIA 44% GEMA GEMILANG 5% EMPLOYEES PROVIDENT FUND Malaysia MAP – as at 30 September 2020 Local Share Ownership 64.2% Foreign Share Ownership 35.8% There is no affiliation between numbers of the board of Commissioners, the Board of Directors, or Majority an
Slide 9: Our Vision & Mission
OUR VISION & MISSION To be the leading omni-channel retailer in Indonesia To bring health, happiness and a more fulfilling lifestyle to our valued customers through our portfolio of world class brands and omni-channel retail network 9
Slide 10: More Than 150 Exclusive Brands
MORE THAN 150 EXCLUSIVE BRANDS ENTERTAIN OUR SHOPPERS 24 HOURS A DAY Department Food & New Growth Specialty Stores Stores Beverage Engines Active Fashion SOGO Sports Spalding Zara BCBGMaxazria Starbucks Coffee MAPClub Sports Station 2XU Massimo Dutti True Religion SEIBU Pizza Marzano Digimap (APPLE)
Slide 11: Unifying Our Retail Experience
UNIFYING OUR RETAIL EXPERIENCE seamlessly between Physical, Digital, and Social channels 1. POWER BRANDS 2. GROUP CRM & SALES 3. VALUE Apple • Converse • Foodhall Kidz Station • Lacoste • M&S Mango • New Balance • P&B Sports Station & Planet Sports • Stradivarius Brand Factory Outlets Starbucks • Sk
Slide 12: Contribution to the SDGs
CONTRIBUTION TO THE SDG’s • MAP helps to grow Indonesian Economy and eradicate poverty by providing jobs and social protection to more than 30,000 employees • Our business activities also create income to other business (landlord, vendors, etc) and to the government (taxes) • We work together with s
Slide 13: Contribution to the SDGs
CONTRIBUTION TO THE SDG’s • Our CSR Program provide clean water to the communities • We constantly remind our employees to reduce energy, save water and implement more sustainable lifestyle • Our Rumah Belajar Anak Bintang (RAJAB) also encourage young people to adopt more sustainable lifestyle from
Slide 14: MSCI ESG Ratings
MSCI ESG RATINGS*) COMPARISON WITH GLOBAL PEERS PT MITRA ADIPERKASA TBK (RETAIL) Retail – Consumer Discretionary | ID Weight Score Quartile Industria de Diseno Textil, S.A. AAA Environment 20.0% 3.3 Marks and Spencer Group P.L.C. AAA Product Carbon Footprint 10.0% 2.1 Adidas AG AAA Raw Material Sour
Slide 15: COVID-19 Tactical Actions
COVID-19 TACTICAL ACTIONS KEEP EMPLOYEES & CUSTOMERS SAFE SALES INITIATIVES Store and office sanitation, Continue to serve customer through provide hand sanitizer and E-Commerce, both own platform or impose health protocols collaboration with 3rd party marketplaces Rp and delivery aggregators
Slide 16: 9M Flash
9M FLASH 2,681 Retail Stores*) 110+ Retail Concepts 12+ Online Concepts 150+ Exclusive brands Physical stores in 81 Cities ASEAN presence in Philippines, Thailand & Vietnam Rp10.2 trillion sales in 9M 2020 Digital sales expansion at 394% 13.4% EBITDA margin -6.6% net income margin in 9M 2020 *) Incl
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS (In Rp bn, %) FY17 FY18 FY19 9M19 9M20* 9M20 RETAIL FOOTPRINT Net Revenue 16,306 18,921 21,579 15,410 10,169 10,169 No. stores Space (sqm) TOTAL 2,358 895,473 % Growth 16% 14% -34% -34% DEPT STORE 55 357,230 EBIT 1,121 1,506 1,931 1,342 (611) (460) SPC. STORE 1,615 393,138 EBIT
Slide 18: Specialty Store
SPECIALTY STORE (In Rp bn, %) FY17 FY18 FY19 9M19 9M20* 9M20 ACTIVE No. of stores: 1,199 Net Revenue 11,263 13,552 15,167 11,015 6,337 6,337 SPORTS STATION 378 outlets PLANET SPORTS 37 outlets % Growth 20% 12% -43% -43% SKECHERS 110 outlets CONVERSE 56 outlets REEBOK 11 outlets EBIT 1,004 1,275 1,59
Slide 19: Food & Beverage
FOOD & BEVERAGE (In Rp bn, %) FY17 FY18 FY19 9M19 9M20* 9M20 F&B No. of stores: 571 Net Revenue 2,119 2,589 3,103 2,236 1,458 1,458 STARBUCKS 456 outlets COLD STONE 24 outlets % Growth 22% 20% -35% -35% PIZZA MARZANO 20 outlets KRISPY KREME 34 outlets GODIVA 4 outlets EBIT 149 155 221 142 (180) (152
Slide 20: Department Store
DEPARTMENT STORE (In Rp bn, %) FY17 FY18 FY19 9M19 9M20* 9M20 No. of stores : 55 stores Net Revenue 2,482 2,300 2,060 1,532 1,296 1,296 : 19 stores % Growth -7% -10% -15% -15% : 1 store EBIT 36 201 161 119 (153) (122) : 1 store EBIT Margin (%) 1% 9% 8% 8% -12% -9% Supermarket : 34 stores *) Before P
Slide 21: Net Revenue & Growth
NET REVENUE & GROWTH (IDR bn, %) 2017 2018 2019 9M19 9M20 Rev Growth +15% +16% +14% +11% -34% 21,579 18,921 16,306 15,410 10,169 2017 2018 2019 9M19 9M20 21
Slide 22: Profitability
PROFITABILITY (IDR bn, %) 2017 2018 2019 9M19 9M20 Gross Margin 48.2% 47.8% 47.5% 48.1% 41.8% EBITDA Margin 11.2% 12.1% 12.9% 12.8% 13.4% EBIT Margin 6.9% 8.0% 8.9% 8.7% -4.5% EBIT 1,931 1,506 1,342 1,121 2017 2018 2019 9M19 9M20 -460 22
Slide 23: Operational Expenditure (as % of sales)
OPERATIONAL EXPENDITURE (as % of sales) 9M20 9M19 2019 2018 2017 LABOUR 16.1% 13.4% 12.8% 13.0% 13.5% RENTAL 0.6% 11.7% 11.1% 11.8% 12.3% DEPR. & AMORT. 17.8% 4.1% 3.9% 4.1% 4.3% UTILITIES 1.9% 1.5% 1.7% 1.8% 2.0% A&P 1.1% 0.8% 1.4% 1.3% 1.1% OTHERS 8.8% 7.9% 7.7% 7.9% 8.1% TOTAL OPEX 46.3% 39.4% 38
Slide 24: Operational Expenditure (IDR bn, %)
OPERATIONAL EXPENDITURE (IDR bn, %) In IDR bn % growth In IDR bn % growth 9M20* 9M19 9M20* vs 9M19 3Q20* 3Q19 3Q20* vs 3Q19 LABOUR 1,642 2,064 -20.4% 536 697 -23.0% RENTAL 1,321 1,806 -26.9% 427 622 -31.4% DEPR. & AMORT. 702 628 11.8% 229 215 6.7% UTILITIES 194 229 -15.3% 58 79 -26.5% A&P 111 130 -1
Slide 25: Inventory Level
INVENTORY LEVEL (Days, IDR bn, %) 2017 2018 2019 9M20 Aging inventory 29% 25% 23% 45% > 6 month INVENTORY DAYS 169 129 115 109 2017 2018 2019 9M20 While inventory days have been increasing over the 9M20 against slower sales during pandemic, in absolute amount it was relatively flat at Rp4.2 trillion
Slide 26: Cash Cycle Days
CASH CYCLE DAYS (Days) 169 129 115 109 106 90 76 72 66 49 47 49 10 8 7 9 2017 2018 2019 9M20 Cash cycle days A/P days A/R days Inventory Days 26
Slide 27: Debt Structure & Leverage
DEBT STRUCTURE & LEVERAGE (IDR bn, %) DEBT DEBTPROFILE PROFILE LEVERAGE LEVERAGE* 2017 2018 2019 9M20 Net DER 21% 9% -4% 13% 14% Blended CoF 8.8% 9.7% 6.9% 6.7% 2,574 2,189 1,930 1,507 86% Loan with Floating Interest Rate 2017 2018 2019 9M20 Loan with Zero Coupon *) Exclude zero coupon bond (GA) 27
Slide 28: Financial Charges Structure
FINANCIAL CHARGES STRUCTURE (IDR bn) 2017 2018 2019 9M20 Interest expense 257 200 171 160 on loans Amortized interest 147 336 41 25 on zero coupon bond Interest expense on - - - 252 lease liabilities FINANCE CHARGES 536 437 404 212 2017 2018 2019 9M20 28
Slide 29: Balance Sheet
BALANCE SHEET (IDR bn) As of As of As of LIABILITIES & As of As of As of ASSETS 30 Sep 20 31 Dec 19 31 Dec 18 EQUITY 30 Sep 20 31 Dec 19 31 Dec 18 Cash & 1,731 1,817 1,412 Bank loan 2,564 1,493 1,434 equivalents Account 519 596 702 Account Payable 2,970 2,550 2,018 Receivables Inventories 4,251 3,61
Slide 30: Thank You
THANK YOU INVESTOR RELATIONS CONTACT DETAILS: " This presentation material contains the latest financial information, business strategies and the prospective financial Ratih Darmawan Gianda information of the Company. The business strategies are subject to changes due to uncertainties that could aff
Slide 31: Appendix
APPENDIX 31
Slide 32: New Accounting Standard Implementation Notes
NEW ACCOUNTING STANDARD IMPLEMENTATION NOTES PSAK 73 SEWA (IAI) or IFRS 16 LEASES (IASB) Effective in Indonesia from 2020 We adopt this new standard with Modified Retrospective method (no restatement for FY19 book) Old Standard (PSAK 30) New Standard (PSAK 73) Commitment on lease Off balance she
Slide 33: Financial Highlights (IDR bn, %)
FINANCIAL HIGHLIGHTS (IDR bn, %) AFTER PSAK 73/ Growth Growth IFRS 16 9M20 9M19* 3Q20 3Q19* (%) (%) Net sales 10,169 15,410 -34% 3,377 5,393 -37% Gross Profit 4,250 7,410 -43% 1,358 2,471 -45% GPM (%) 41.8% 48.1% 40.2% 45.8% EBIT (460) 1,342 -134% (129) 372 -135% EBIT Margin (%) -4.5% 8.7% -3.8% 6.9
Slide 34: Financial Highlights (IDR bn, %)
FINANCIAL HIGHLIGHTS (IDR bn, %) PRIOR PSAK 73/ Growth Growth IFRS 16 9M20 9M19 3Q20 3Q19 (%) (%) Net sales 10,169 15,410 -34% 3,377 5,393 -37% Gross Profit 4,250 7,410 -43% 1,358 2,471 -45% GPM (%) 41.8% 48.1% 40.2% 45.8% EBIT (611) 1,342 -146% (208) 372 -156% EBIT Margin (%) -6.0% 8.7% -6.2% 6.9%
Slide 35: Quarterly Income Statement (IDR bn, %)
QUARTERLY INCOME STATEMENT (IDR bn, %) IDR bn YoY Growth (%) 9M20 3Q20 2Q20 1Q20 9M20 3Q20 2Q20 1Q20 Net sales 10,169 3,377 2,083 4,708 -34.0% -37.4% -61.0% 0.6% Gross Profit 4,250 1,358 743 2,149 -42.6% -45.0% -72.9% -2.2% GPM (%) 41.8% 40.2% 35.7% 45.6% EBITDA 1,362 468 114 780 -31.1% -20.6% -87.2
Slide 36: Quarterly Income Statement (IDR bn, %)
QUARTERLY INCOME STATEMENT (IDR bn, %) Growth Growth 3Q20 2Q20 2Q20 1Q20 (%) (%) Net sales 3,377 2,083 62.1% 2,083 4,708 -55.8% Gross Profit 1,358 743 82.7% 743 2,149 -65.4% GPM (%) 40.2% 35.7% 35.7% 45.6% EBITDA 468 114 309.0% 114 780 -85.3% EBITDA Margin (%) 13.9% 5.5% 5.5% 16.6% EBIT (129) (492)
Slide 37: Unifying Our Retail Experience
UNIFYING OUR RETAIL EXPERIENCE Online leads, current offline becomes physical distribution network Dedicated Multi-brand platforms Mono-brand sites SHOP. .COM/ID ID. .COM Chat and Buy Initiatives 3rd Party Online Market Places and Online Deliveries 37
Slide 38: Our Loyalty Program
OUR LOYALTY PROGRAM • Launched in 2016 • #1 Loyalty Program in Indonesia • Database for cross-selling and marketing • Over 60,000 Social Media followers • More than 20,000 mobile apps users • Potential to create lifestyle coalition loyalty program • Members: 3.25 million (>290,000 new members YTD) •