Q1 2018 Earnings Call 30 April 2018 1
Table of Content Operational & Strategic Updates Indonesia Macro Overview 4 Store Network Q1 2018 16 Key Financial Highlights Initiatives roll out update 6 17 Mataharistore.com Sales and DP/CV Mix 18 7 Same Store Sales Growth Appendix 8 Regional GDP, Sales and SSSG 9 Shareholding Structure 21 Gross Profit and Margin 10 OPEX 11 EBITDA and Margin 12 Net Income and Margin 13 Inventory and Cash Position 14 2
Indonesia Macro Overview Indonesia Macro Overview 3
Indonesian economy at a glance Consumer Confidence Index GDP Growth 125.9 126.4 126.1 123.8 123.4 123.7 122.1 121.6 122.5 121.5 121.9 122.4 5.06%5.19% 5.14% 120.7 5.01% 5.01% 117.1 5.02% 4.92% 115.3 4.71% 5.18% 5.04% 5.03% 4.92% 4.94% 5.01% 4.67% 4.73% Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 . Inflation 4.37% 4.17% 3.40% 3.25% 4.33% 3.88% 3.82% 3.72% 3.58% 3.30%3.61% 3.61% 3.18% Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Source: Bank Indonesia and BPS 4
Q1 2018 Financials 5
Key Financial Highlights Q1 ‘17 Q1 ‘ 18 IDR Bn 3,214 3,368 4.8% Gross Sales -3.5% 4.8% SSSG 1,165 1,218 4.5% Gross Profit 389 398 2.4% EBITDA 244 247 1.0% Net Income Gross Margin 36.3% 36.2% 10 bps 12.1% 11.8% 30 bps EBITDA Margin Net Margin 7.6% 7.3% 30 bps 6
Total sales, and direct purchase contribution, continue to grow Sales IDR Bn 17,496 17,294 3,368 3,214 Q1' 17 Q1' 18 FY '16 FY '17 Sales mix Sales mix DP 37.0% 37.2% DP 36.9% 38.1% CV 63.0% 62.8% CV 63.1% 61.9% 7
SSSG improved to 4.8% in Q1 2018 SSSG % Q1 FY 5.5% 4.8% -1.2% -3.5% FY ‘16 FY ‘17 Q1 ‘17 Q1 ‘18 8
Greater Jakarta leads sales growth, Kalimantan strengthens Gross Sales by Region (%) Q1 2018 SSSG Outside Java Q1 : 5.7% Greater Jakarta 27.0% Java exc Jkt 33.6% Outside Java Kalimantan 39.4% Total Sales 100.0% Sumatra Greater Jakarta East Java Bali and East Indonesia SSSG Greater Jkt Q1 : 6.1% West Java Central Java > 7% SSSG Java 6% < GDP ≤ 7% Q1 : 2.7% 5% < GDP ≤ 6% 4% < GDP ≤ 5% Note: Regional GDP as of Q4 2017 GDP ≤ 4% Source: Bank Indonesia for GDP growth Negative 9
Merchandise margins 10 bps lower in Q1 on clearance Gross profit and margins IDR Bn 36.3% 36.2% 35.5% 35.5% 6,203 6,146 1,218 1,165 Q1' 17 Q1' 18 FY' 16 FY' 17 Gross profit as a % of Gross Sales 10
Same store opex expenses leverage in Q1 Opex (1) as a % of Gross Sales Comp store Total Company 18.9% 18.6% 19.4% Q1' 17 Q1' 18 18.9% Total Company 24.4% 24.2% FY' 16 FY' 17 Q1' 17 Q1' 18 Note 1. Opex calculated as Adjusted Gross Profit less Adjusted EBITDA 11
Q1 EBITDA grew by 2.4% yoy EBITDA and Margins IDR Bn 16.6% 16.0% 12.1% 11.8% 2,872 2,808 398 389 Q1' 17 Q1' 18 FY' 16 FY' 17 Notes EBITDA as a % of Gross Sales EBITDA adjusted for severance pay 12
Net income was Rp247bn in Q1 2018 Net Income (IDR Bn) 11.7% 10.9% 7.6% 7.3% 2,020 1,907 247 244 7.6% 7. 6% FY' 16 FY' 17 Q1' 17 Q1' 18 Net Income as a % of Gross Sales 13
Balance sheet remains healthy INVENTORY DAYS, CASH POSITION AND OUTSTANDING BANK LOAN BALANCE Inventory days and cash position improved End of Dec 2017 End of Mar 2018 LTM Ave. Inventory Days 118 days 120 days Cash on Hand Rp 1,583 Bn Rp 1,106 Bn Outstanding Bank Loan Balance Rp 0 Rp 0 CAPEX AND REFURBISHMENTS FY 2017 FY 2018E Capex Rp 323 Bn Rp 400-500 Bn Refurbishments 16 15-20 14
Operational and Strategic Updates 15
FY2018 expansion plans Store Count Split by Region o Forecast revised to 4-6 new stores Greater Jakarta Java exc Jkt Outside Java o 2 new stores prior to Lebaran 35.3% 36.8% 39.7% o 1 stores impacted by fire 40.1% 40.4% 40.6% o 1 underperforming store lease expired in 36.2% 35.2% 31.1% 32.8% 32.4% 33.5% April and will not be renewed (Grand Palladium, Medan) 28.5% 28.0% 28.5% 27.5% 27.5% 25.8% 2012 2013 2014 2015 2016 2017 New Store Opening Actual Forecast Plan No Geographic area FY2017 Q1 2018 FY2018E Future Pipeline 2019 and onwards # of stores # of stores # of stores # of stores % mix 1 Jabodetabek (Greater Jakarta) 40 40 0 4 12.1% 2 Java (Exc Greater Jakarta) 52 51 3-5 11 33.3% 3 Outside Java 63 63 1 18 54.5% Total 155 154 4-6 33 100.0% 16
Key merchandising initiatives roll-out update DP Handbags Disney 154 stores 98 stores IFF Designers - Naura & Neona Muslimwear 92 stores 67 stores 17
Mataharistore.com performance update Sales by Region – Online (1Q18) Mataharistore.com Q1 Q4 Q1 Java excl. G. Jkt, 2017 2017 2018 52.8% No. of transactions (‘000) 67 215 270 Store pick-ups (%) 2.4% 3.7% 3.5% Greater DP: CV sales mix ratio 77:23 73:27 79:21 Jakarta, Outside 39.7% Java, 7.5% Sales by Category - Offline (Q1 2018) Sales by Category - Online (Q1 2018) Shoes, 17.8% Children, Ladies/youth 11.5% Children, girl, 18.5% 14.7% Cosmetics, Ladies/ 8.0% Bags/ youth girl, Shoes, accessories, 26.7% Bags/Access 21.1% 5.3% ories, 2.6% Cosmetics, 0.3% Others, 7.1% Men/ Youth Others, Men/youth boy, 36.5% 4.7% boy, 31.1% 18
Summary Same store sales growth increased from 3.7% in Q4 2017 to 4.8% in Q1 2018 Growth drivers were an increase in transactions and unit volumes Merchandising initiatives are performing well, with the Home initiative being piloted in the middle of the year 2018 Store expansion plans have been pulled back, anticipating developer delays Mataharistore.com performance continues to show strong growth in terms of both transactions and sales 19
Appendix 20
Shareholding Structure Public Multipolar 82.5% 17.5% PT Matahari Department Store Tbk 21
Notes 22
Notes 23
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