Company Presentation 30 Juni 2018 This document is being furnished - - PowerPoint PPT Presentation

27 June 2012

Company Presentation

30 Juni 2018

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PT Ace Hardware Indonesia, Tbk.

Company ny Backgroun und Business iness Overview view

• Established in Jakarta in 1996
• Part of Kawan Lama Group
• Listed in 2007
• Free float 40%, market cap of

USD 1.51 bn (share price IDR 1.270; IDR/USD 14,404)

• Targeted at mid-up level of

customers

• Operates 157 retail outlets
• Around 68,000 SKUs of Home

Improvements and Lifestyle, divided into 17 departments

• Entered toys business in mid 2010

3,000 sqm

Store e Classif sifica catio ion

Ace Home Center:

• More Lifestyle

products

• 34 outlets

Ace Hardware:

• More Home

Improvement products

• 123 outlets

1

Parent Company

Company ny Descripti cription

• PT Kawan Lama Sejahtera
• Established in 1955
• Major shareholder of 59.97% in ACES

Business iness

• Distributor & supplier of commercial and

industrial tools, i.e. generator, welding equipments, cleaning equipments, cutting equipments, etc.

• Exclusive distributor of various

international brands, e.g. Nilfisk, Metabo, Rubbermaid, Victorinox, Brabantia, etc.

2

Licensor

Company ny Descripti cription

• Ace Hardware Corporation
• Established in 1928
• Headquarter located in Oak Brook, IL, USA
• 4,400 stores across all 50 states in USA
• Presence in 70 foreign countries with sales
• f more than USD 10 bn

Licen ense se Agree eemen ent

• 15 years period
• Second term of license agreement of 2010

to 2024

3

887 1280 1398 1689 2426 3223 4020 4670 4874 5082 6103 26 36 39 45 53 76 95 110 117 129 144 20 40 60 80 100 120 140 160 1000 2000 3000 4000 5000 6000 7000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sales # of Stores

Milestone

4 Sales (IDR bn) # of stores

Listed In IDX Entered Toys Business

Financial Performance

1H18 1H17 Change Sales* Gross profit Operating profit Net profit** Profitability Ratios Operating margin (%) Net margin (%) Gross margin (%) 3,384.7 2,759.9 22.6% 22.6% 474.4 373.8 26.9% 430.1 326.7 31.6% 46.2 46.6 12.2 11.5 13.5 13.2

* Outright + net consignment

5

1,620.5 1,322.2

In IDR (bn)

** Including IDR 70 bn gain from sale of land

Financial Performance Trend

2013 Sales Net profit In percentage

Gross margin

• Opr. profit margin

Net margin

In IDR bn 2014 2016 2015 4,742.5 4,541.5 3,895.4 584.9 556.7 503.0 780.7 12.0 11.9 12.5 12.8 14.1 14.2 14.0 14.2 46.2 47.0 48.1 46.4

6

2017 4,935.9 706.2 13.9 14.4 46.3 5,938.6

Regional Presence

157 stores in 36 cities

Sales by Region

2014 2015 2016 2017

Jakarta

28.2 34.0 32.4

Java ex Jakarta

44.6 39.8 40.8

Ex Java

27.2 26.2 26.7

Total

100.0 100.0 100.0 100.0 100.0

7

29.4 43.7 27.0

In Percentage to Sales

1H18 26.8 45.6 27.6

Sales – Consignment vs Outright

In Percentage to Sales

8

98 98 98 98 98 96 2 2 2 2 2 4

• 20

40 60 80 100 2013 2014 2015 2016 2017 1H18 Outright Consignment

Merchandise Sources

In Percentage to Sales

9

81 81 82 80 79 80 19 19 18 20 21 20

• 20

40 60 80 100 2013 2014 2015 2016 2017 1H18 Import Local

Lifestyle

Home Improvement

Total

38.6 56.9 100.0 100.0

10

38.7 56.8 100.0 40.1 55.2

Toys

4.5 4.5 4.7

2015 2017 2016

46.4 47.0 37.8 46.2

gross margin (%)

Home Improvement

Lifestyle Toys Total

46.5 47.1 36.2 46.3

1H18

46.4 47.4 38.2 46.5

2015 2017 2016

as percentage to total Sales

1H18

Sales & Gross Profit by Categories of Products

100.0 41.6 53.3 4.9 45.9 47.0 40.8 46.2

11

Number of Stores by Type and Format

By Type Home Center 2016 2015 2014

30 28 27

Hardware

99 89 83

2016 2015 2014

81 75 71 48 42 39

By Format Mall Independent

129 117 110

Total

129 117 110

Total 2017 2017

90 54 144 33 111 144

1H18 1H18

99 58 157 34 123 157

Space Growth

Beginning New 2014 2017 2016 2015 312,900 276,170 19,400 42,750 Resize & Closure Total

• 1,880
• 6,020

356,980 330,420 312,900

In sqm 12

330,420 28,880

• 2,320

1H18 392,100 356,980 38,900

• 3,780

418,020 392,100 25,920

Number of Employees

Total employees Sales/employee (IDR mn) 2014 2017 2016 2015 11,348 11,746 417.9 397.6 Space/employee (sqm) 28.7 26.3

13

11,874 415.7 30.3 1H18 13,266 447.7 29.6 13,514 505.1 30.9

Reward Card

Total members (th) Sales by members (%) 2014 2017 2016 2015 1,316.2 1,092.9 64.8 63.1 Average ticket- member (IDR th) 652.6 634.6 Average ticket-

• verall (IDR th)

377.2 354.0

14

1,572.4 66.8 670.9 389.9 1H18 1,825.0 65.5 667.0 380.8 1,977.2 65.6 678.0 386.5

Capex & Insurance

Capital expenditures 2018 projection: IDR200 bn Insurance

• Value insured: USD175.4 mn by PT Asuransi Multi

Artha Guna, Tbk.

• Covers all risks, including riot, strike, flood, fire and

malicious damage

• Period covered until 31 Dec 2018

15

Expansion Criteria

Demography minimum of:

• 300 thousand people, for Home Center
• 100 thousand people, for Hardware

Availability of infrastructure and transportation Availability of other national retailers Availability of modern property, such as commercial and housing estates

16