9M17 MPM Company Highlights and Financial Results (Ticker: MPMX) November 2017
MPM: FROM “PIPELINE” TO “PLATFORM” BUSINESS OUR VISION To positively impact lives through smart mobility and social integration OUR MISSION To create ecosystems of the best ideas (game changing innovation) delivered through the most relevant products and services (understanding people better) in the most effective ways (optimized business models & cross selling) , by the most talented people (high performance culture) in our industry OUR CREDO Progressive Thinking Active Ownership Collaboration 2
TABLE OF CONTENT MPM: Company Highlights 01 02 Consolidated Financial Results: 9M17 Updates 03 Business Segment Performance 3
MPM IN A SNAPSHOT: LEADING SMART MOBILITY COMPANY IN INDONESIA Market expertise Strong Corporate Significant Growth With 30 year of experience Governance & Financials Potentials Est. in 1987 by W. Soeryadjaya as BOC & BOD has over 100 years of 4 main business segments, each with • • • 2W distribution business for Honda management and governance with growth potential industry experts, independent Expertise and leading market Network and presence across • • commissioners, and professionals positions in consumer automotive archipelago serving 10MM+ individual in place (2W & 4W) supply chain and value customers, 1,000+ corporate clients, chain Listed in IDX (Ticker: MPMX) in and 10,000+ 3 rd party channels • 2013, raising Rp 1.5T from public Recognized by industry as 2017 8,000+ employees with high • • (22% enlarged TSO) Top 50 Best Company in Indonesia performance culture (Forbes) and other various awards Total Equity @ Rp 5.0T with cash • balance @ Rp 1.7T (September 17)* Resource: MPMX, as of 30 September 2017 4 *Figures are post MPMF deconsolidation
MPM BUSINESS: COLLECTIVE POWER Distribution & Retail Consumer Parts 77% 10% 6% 2W Honda distribution in E. Java + NTT 2W & 4W engine lubricant principal & • • with 288 dealer relationships, serving parts distribution company 7% ~4.6MM active customers 3,300+ Federal Oil Centers & 10,000+ 3 rd • Rp 17.7T 2W Honda 3S dealerships with 40 party workshops nationwide, serving • outlets across Indonesia 10MM+ customers per year FY16 Revenue Auto Services 4W Nissan & Datsun 3S dealerships • with 5 outlets across Indonesia Independent 4W rental/lease company • with 13K+ fleet, serving 1,000+ corporates Financial Services* Fleet & logistic management services • Independent 2W, 4W, lease financing Non-life general insurance including • • business with 86 outlets nationwide, 2W, 4W, cargo, & property with 26 serving 130K+ customers offices & 6 service points nationwide Resource: MPMX, as of 30 Sep 2017 * MPM Finance was deconsolidated from MPM since May 2017 5
GOVERNANCE AND MANAGEMENT Board of Commissioners Board of Directors Strong mix of operational, strategy, M&A, and governance Over 100 years of combined professional experience expertise Rudy Halim Edwin Soeryadjaya Group CEO Chairman Agung Kusumo Troy Parwata Titien Supeno Andi Esfandiari Tossin Himawan Lee Chul Joo Danny Walla Managing Director Group CFO HR Director Director Commissioner Commissioner Commissioner Shareholding Morninglight Investment S.a.r.l 15.3% Istama Siddharta Simon Halim 48.6% Claris Investment Pte. Ltd. 6.8% Independent Independent PT Saratoga Investama Commissioner Commissioner Sedaya Tbk Public & Others 29.3% Resource: MPMX, as of 30 Sep 2017 6
MPM GROUP NETWORK: PRESENCE ACROSS INDONESIA 26 MPM Insurance Offices & Outlets 48 FKT Distributors for Federal Oil & Federal Mobil 35 MPM Rent Offices & Service Points 5 MPM Auto Dealers 86 MPM Finance Offices & Outlets 40 MP Motor Retail Outlets 288 MP Mulia Dealers Resource: MPMX, as of 30 Sep 2017 7
TABLE OF CONTENT MPM: Company Highlights 01 02 Consolidated Financial Results: 9M17 Updates 03 Business Segment Performance 8
9M17 REVENUES: SEGMENT CONTRIBUTION & MOVEMENT Revenues 9M17 Revenues Growth % YOY, in Rp billion 11% Rp 11.9T 80% (637) (20) 173 43 (25) 8% 12,384B 11,919B 4.3% QoQ, -3.8% YoY -4% 1% 9M17 9M16 YoY revenue growth %YoY -6% +21% +45% -2% Distribution & Retail Consumer Parts Elimination Auto Services *Financial Services Summary Total Revenue though slightly down on a YoY basis, performed resiliently against weak consumer purchasing power in 2017. Strong growth from Auto Services and Financial Services. 2W Sales improved on a quarterly basis, though still slightly down on a YoY basis. Lubricant Sales followed similar trend of improving revenue on a quarterly basis but slightly down on a YoY basis. * MPMInsurance only 9
9M17 NPATMI: SEGMENT CONTRIBUTION & MOVEMENT NPATMI 9M17 NPATMI Growth % YOY, in Rp billion Rp 363B -79.4% QoQ, 25.4% YoY (21) 69 33 16 (34) 12 (2) 363B Distribution & Retail 41% 290B Consumer Parts +25% 41% 9M17 9M16 YoY NPATMI growth Auto Services 10% Financial Services *8% %YOY -143% -1% -15% +70% +54% +567% +50% Distribution & Retail Consumer Parts 0% 10% 20% 30% 40% 50% Auto Services **Financial Services *Includes Discontinued Operation (MPMFinance) 7% and MPMInsurance 1% Minority Interest Discontinued Operation Head Office Summary NPATMI grew 25% YoY driven by combination of improvement in operational efficiency and one-off gain in MPMF divestment. Higher operational efficiency contributed to the significant increase in profitability for Auto Services. Improved asset quality and strong business growth drove the solid profitability in Financial Services. Despite lower revenue, the profitability of 2W business managed to grow due to significant OPEX savings. ** Includes MPMInsurance only 10
9M17 Financial Highlights P&L Highlights B/S Highlights %Rev Key Ratios 9M17 9M16 9M17 QoQ% YoY% 9M17 QoQ% YoY% N/A Cash and Cash Equiv. Net Debt/EBITDA* 0.8x 4.2x Net Revenues 11,919 4.3% -3.8% 1,719 30.8% 31.1% 11.5% Total Asset Net Debt/Equity 0.2x 0.9x Gross Profit 1,368 1.6% -0.1% 10,176 4.4% -30.4% 3.0% Bank Funding ROE* 10.1% 6.9% NPATMI 363 -79.4% 25.4% 2,921 803.0% -20.3% 9.2% BV of Equity ROA* 5.0% 2.7% EBITDA 1,095 -23.5% 17.2% 5,036 -1.2% -12.8% 3.6% FCCR 3.8x 3.7x CAPEX 423 31.7% -31.0% (In Rp Billion) Summary Gross margin, EBITDA margin and Net margin all increased compared to the same period last year. CAPEX spending continues to come down, in line with the key focus of 2017. Strong balance sheet with healthy leverage ratios. ROE and ROA ratio have improved significantly. * Annualized figure 11
KEY FOCUS 2017: (1) COST LEADERSHIP Financial Highlights (in Rp billion) %Rev 9M17 QoQ% YoY% 6.9% Total Opex 819 1.0% -0.4% 2.7% Compensation & Benefit 0.5% -2.3% • 324 1.3% Advertising & Promotion 155 9.1% -11.4% • 0.5% Transportation & Storage 60 -0.8% -9.8% • 0.2% Provision -5.6% 85.6% • 19 Revenue/HC 4.2 Average COF 8.5% Summary Major OPEX items: C&B, A&P, T&S, have decreased YoY in line with the key focus of 2017. Continue monitoring Revenue per Headcount as part of productivity benchmark . Average COF excluding early refinancing costs of Bonds (non-recurring), continues downward trend. 12
KEY FOCUS 2017: (2) OPERATING CASH FLOW 9M17 Cash Flow (in Rp billion) Operational Highlights 1,719 1,484 1,311 1,202 9M16 9M17 YoY% 9M16 9M17 822 735 AR Days 16.9 16.8 -0.8% 365 AP Days 27.9 27.7 -0.8% Inventory Days 15.0 16.0 6.4% (344) (566) (671) Balance as of Operating Balance as of Investing Financing December 31 st Activities September 30 th Activities Activities Summary YoY% 9M17 Beg. Balance of Disc. Op. - Keep up the momentum of producing positive and (83) Adj. Beg. Balance* - growing cash flow. 1,202 CF from Operating 11.8% CF from Investing grow significantly due to the 822 CF from Investing 206.4% proceeds from MPMF divestment. 365 CF from Financing -18.6% Continue to monitor Cash Conversion Cycle. (671) Ending Balance 31.1% 1,719 * Net off with the Beginning balance of Disc. Operation. 13
KEY FOCUS 2017: (3) COLLABORATIVE ECONOMY & NEW GROWTH Collaborative Economy- ACE Performance Improving cross-selling and up-selling between operating companies, aligned with the Accelerated Collaborative Economy initiatives. New Growth-MPM Planet-The Power of Network Effects Rally Point App is the “window” to our MPM planet. Stretch Dollar is key to the value proposition of MPM planet. New business-online 4W multi-brand platform launched in August. 14
Bidbox: 4W Online Multi-brand Platform 15
RECENT KEY EVENTS: Aug – Oct 2017 Aug’17 Sep’17 Oct’17 Oct’17 Oct’17 MPM Group awarded Most MPM Group is listed on FKT received 2 Indonesia MP Mulia is ranked MPM Insurance awarded Forbes Indonesia “50 Best 1 s t in Astra Honda 1 st for Best Financial Best Brand Award 2017 for Powerful Companies 2017, of the Best Companies The Most Valuable Brand in Category: Wholesale, Sector: Performance General Technical Skill 2017” for consecutive Indonesia category Trade, Services & Investment Insurance Company Contest 2017, years Motorcycle Lubricant and by Warta Ekonomi category Service with Rp 400-600B asset Advisor Matic Motorcycle Lubricant by Warta Ekonomi 16
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