27 June 2012 Company Presentation
30 Juni 2018 This document is being furnished to you solely for your information on a confidential basis & may not be reproduced, redistributed or passed on, in whole or in part, to any other person. We caution all investors that all statements has not been independently verified. No representation or warranty expressed or implied is made as to, & no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The Company’s reasonable judgments on its forward-looking views and is subject to changes caused by unforeseeable risks and other uncertainties that could affect the Company’s business.
PT Ace Hardware Indonesia, Tbk. Company ny Backgroun und Business iness Overview view -Established in Jakarta in 1996 -Targeted at mid-up level of -Part of Kawan Lama Group customers -Listed in 2007 -Operates 157 retail outlets -Free float 40%, market cap of -Around 68,000 SKUs of Home USD 1.51 bn (share price IDR Improvements and Lifestyle, divided 1.270; IDR/USD 14,404) into 17 departments -Entered toys business in mid 2010 Store e Classif sifica catio ion Ace Home Center : Ace Hardware : - More Lifestyle - More Home products Improvement products 3,000 sqm - 34 outlets - 123 outlets 1
Parent Company -PT Kawan Lama Sejahtera Company ny Descripti cription -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 -Ace Hardware Corporation Company ny Descripti cription -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 of more than USD 10 bn Licen ense se Agree eemen ent -15 years period -Second term of license agreement of 2010 to 2024 3
Milestone Sales (IDR bn) # of stores 7000 160 144 140 6000 129 117 120 110 5000 95 100 Entered 4000 Toys 76 80 Business 6103 3000 53 60 Listed 5082 4874 In IDX 45 4670 39 2000 4020 36 40 3223 26 2426 1000 20 1689 1398 1280 887 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sales # of Stores 4
Financial Performance In IDR (bn) 1H18 1H17 Change Sales* 3,384.7 2,759.9 22.6% 1,322.2 Gross profit 1,620.5 22.6% Operating profit 474.4 373.8 26.9% Net profit** 430.1 326.7 31.6% Profitability Ratios Gross margin (%) 46.2 46.6 13.5 13.2 Operating margin (%) Net margin (%) 12.2 11.5 * Outright + net consignment ** Including IDR 70 bn gain from sale of land 5
Financial Performance Trend 2013 2014 2015 2016 2017 In IDR bn Sales 3,895.4 4,541.5 4,742.5 4,935.9 5,938.6 Net profit 503.0 556.7 584.9 706.2 780.7 In percentage 48.1 47.0 46.2 46.3 46.4 Gross margin 14.0 14.2 14.1 14.4 14.2 Opr. profit margin 12.5 11.9 12.0 13.9 12.8 Net margin 6
Regional Presence 157 stores in 36 cities Sales by Region In Percentage to Sales 2014 2015 2016 2017 1H18 34.0 32.4 29.4 28.2 26.8 Jakarta 39.8 40.8 43.7 44.6 45.6 Java ex Jakarta 26.2 26.7 27.0 27.2 27.6 Ex Java 100.0 100.0 100.0 100.0 100.0 Total 7
Sales – Consignment vs Outright In Percentage to Sales 98 98 98 98 98 96 100 80 60 Outright Consignment 40 20 4 2 2 2 2 2 - 2013 2014 2015 2016 2017 1H18 8
Merchandise Sources In Percentage to Sales 100 82 81 81 80 80 79 80 60 Import Local 40 21 20 20 19 19 18 20 - 2013 2014 2015 2016 2017 1H18 9
Sales & Gross Profit by Categories of Products as percentage to total Sales 2015 2016 2017 1H18 56.9 56.8 55.2 53.3 Home Improvement 38.6 38.7 40.1 41.6 Lifestyle 4.5 4.5 4.7 4.9 Toys Total 100.0 100.0 100.0 100.0 gross margin (%) 2015 2016 2017 1H18 45.9 Home Improvement 46.4 46.5 46.4 Lifestyle 47.0 47.0 47.1 47.4 Toys 40.8 37.8 36.2 38.2 Total 46.2 46.2 46.3 46.5 10
Number of Stores by Type and Format 2014 2015 2016 2017 1H18 By Type Home Center 27 28 30 33 34 Hardware 83 89 99 111 123 Total 110 117 129 144 157 2014 2015 2016 2017 1H18 By Format Mall 71 75 81 90 99 Independent 39 42 48 54 58 Total 110 117 129 144 157 11
Space Growth In sqm 2014 2015 2016 2017 1H18 Beginning 276,170 312,900 330,420 356,980 392,100 New 42,750 19,400 28,880 38,900 25,920 Resize & Closure -6,020 -1,880 -2,320 -3,780 - Total 312,900 330,420 356,980 392,100 418,020 12
Number of Employees 2014 2015 2016 2017 1H18 Total employees 11,746 11,348 11,874 13,266 13,514 Sales/employee 397.6 417.9 415.7 447.7 505.1 (IDR mn) Space/employee 26.3 28.7 30.3 29.6 30.9 (sqm) 13
Reward Card 2014 2015 2016 2017 1H18 Total members 1,092.9 1,316.2 1,572.4 1,825.0 1,977.2 (th) Sales by members 63.1 64.8 66.8 65.5 65.6 (%) Average ticket- 634.6 652.6 670.9 667.0 678.0 member (IDR th) Average ticket- 354.0 377.2 389.9 380.8 386.5 overall (IDR th) 14
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 modern property, such as commercial and housing estates Availability of other national retailers Availability of infrastructure and transportation 16
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