Investor & Analyst Gathering - MPM | We Are Smart Mobilitympmgroup.co.id/public/uploads/2014/08/2014.08.25 MPMX Analyst... · Investor & Analyst Gathering 28 August 2014 ... ADIRA

Investor & Analyst Gathering 28 August 2014

www.mpmgroup.co.id

PT Mitra Pinasthika Mustika Tbk

Mission

To provide high quality and friendly transportation products and services that make our customers happy

MPM CREDO

Vision

Become a friendly household name through resourceful and passionate people led by respectable and humble leaders

MPM Core Values

1. Passion for Excellence

2. Customer Focus

3. Continuous Improvement

4. Respect & Humble

5. Gratefulness

6. Integrity

7. Adaptability

8. Teamwork

KEY MESSAGES (NPAT GROWTH)

3

About MPM Leading End-to-End Consumer Automotive Company in Indonesia

Company Updates Progressing despite macro challenges

1H14 Summary & Business Segments Performance Strong 2W business despite natural disasters, Strengthen 4W businesses

FY14 Outlook ~15% revenue growth, ~5% NPATMI growth year-on-year

26 YEAR SUCCESSFUL LEGACY AND EXPERTISE IN AUTOMOTIVE...

4

1987

Founded by William Soeryadjaya as 2W

distribution business

1988

FKT was established

1992

MPMMotor 1st retail outlet was

opened

Establishment – Pre 2012

1994

Acquired initial shareholding in SAF,

originally established in 1982

2010 - 2011

Mulia was established; distribution business was transferred from

MPM to Mulia

Jan ‘12

Acquired MPMRent and MPMFinance

May ‘12

MPMInsurance was established

Dec ‘12

JACCS acquired significant

minority shares in SAF + options

May ‘13

Listed in Indonesian Stock Exchange, Ticker: MPMX

Aug ‘13

MPMAuto was established, signed Dealer and Service

Agreement with Nissan Motor Indonesia

2012 - Present

May ‘14

Merger of MPMFinance

and SAF

5

...CREATING AN END-TO-END NATIONWIDE ECOSYSTEM SERVING VAST CONSUMERS IN AUTOMOTIVE SECTOR...

2,6M+ active 2W customers,

~850 new 4W orders since inception

3200+ Federal Oil Centers, 13,000+ 3rd

party retailers, 10M+ 2W customers

1,500+ corporate clients

240K+ finance & lease customers, 34K+ insurance

clients

DISTRIBUTION & RETAIL AUTO CONSUMER PARTS AUTO SERVICES FINANCIAL SERVICES

2W Honda distribution in E. Java + E. Nusa

Tenggara with 287 dealer relationships

2W Honda retail dealers with 40 outlets

nationwide

2W engine lubricant brand principal with 32

distributors and 15,000+ outlets nationwide

4W engine lubricants (currently in bulk)

Independent 4W rental/lease company

with 36 outlets and workshops

Independent 2W, 4W, lease financing business

with 178 outlets nationwide

Non-life insurance including 2W, 4W, cargo,

& property with 10 offices & 9 service points

nationwide

N/A

4W Nissan & Datsun dealership, opened 1st

outlet in Mar ‘14

Data as of 1H14

...WITH MARKET LEADING POSITION DRIVING GROWTH

6

14% 2W volume growth

GROWTH (1) SCALE POSITION +

#1 E. Java, 70% market share

14% 2W retail volume growth #5 nationwide by volume

850 unit sales since inception 1 of 2 nationwide dealer

10% lube volume growth #1 for Honda, 23% market share

44% fleet size growth #2 largest nationwide by fleet size (2)

19% booking growth YoY Top 2 non-bank finco

1,380% premium growth vs. ‘12 Scalable non-life insurance

DISTRIBUTION & RETAIL

AUTO CONSUMER

PARTS

AUTO SERVICES

FINANCIAL SERVICES

(1) 3-year growth (2010 – 2013 CAGR) unless otherwise noted (2) Based on market survey and analysis by FKT

7

13%

9%

34%

44%

Revenues FY13

IDR 13.9T

BALANCED SEGMENT PROFIT CONTRIBUTION IN THE ECOSYSTEM

Revenues 1H14

IDR 7.8T

NPATMI FY13

IDR 526B NPATMI 1H14

IDR 284B

Distribution & Retail Auto Consumer Parts Auto Services Financial Services

7% 7%

10%

76%

+29% YoY

+14% YoY

20%

9%

28%

43% +41% YoY

7% 7%

10%

76%

+16% YoY

8

STRONG GOVERNANCE AND MANAGEMENT IN PLACE WITH ACTIVE MAJOR SHAREHOLDERS

BOARD OF COMMISSIONERS BOARD OF DIRECTORS

Shareholder Composition

BoC brings strong mix of operational, strategy, M&A, and governance expertise

BoD members bring over 80 years of combined professional experience

47.6%

15.3%

6.8%

30,3%

PT Saratoga Investama Sedaya Tbk and Affiliates

Morninglight Investments S.a.r.l

Claris Investment Pte. Ltd.

Public & Others



Company Updates Continued scale building and growth across all business segments



Company Updates Continued scale building and growth across all business segments

9


10

2Q14 KEY EVENTS: PROGRESSING THROUGH DESPITE MACRO BACKGROUND

MPMAuto delivered 1st Datsun to its customer,~200 units YTD

7 Jun ‘14

MPMAuto opened Nissan UCARS dealership, 1st in Indonesia

7 Jul ‘14

SAF rated #1 multifinance for 2013 performance by InfoBank Magazine

3 Aug ‘14

Kick-off Customer Satisfaction independent measurement by Ipsos,

average score 7.0+ on each Opco

Apr – Jun ‘14

Mulia received top awards from AHM for digital channels, achieved 100,000 unit sale in Jun ‘14

Jun ‘14

Federal Oil received WOW Brand award from MarkPlus

25 Jun ‘14

Start of Sales (SOS)

11

MPMAUTO: THE FIRST OF ITS KIND BUSINESS MODEL IN BUILDING NISSAN-DATSUN DEALERSHIPS

Nissan Tj. Priok Opened Mar ‘14

Alam Sutera Coming soon

Sep ‘14

Local Partnership Scheme • Increase brand presence • Reduce CAPEX • 100% MPMAuto management

control • Fast pace expansion

Finco Partnership Scheme • Max 4 other fincos • Pre-approved customer names • 1-day loan disbursement post

document completion

Product Differentiation • Body Shop • Spare part whosaler center • Nissan U-Cars • MPMA customer loyalty card • Virtual community, website &

social media

5 mio

10 mio

70 mio

20 mio

Population

FINANCE COMPANY NETWORK CUSTOMER

BCA Finance & KKB 1,062 3,000,000

ADIRA Finance 669 1,600,000

BFI Finance 185 500,000

OTO Multiartha Finance 177 200,000

MPM Finance 62 30,000

Finance Company Alliance

12

In IDR B (%) denotes percentage of net IPO proceeds.

MPM HAS USED UP 77% OF THE PROCEEDS RAISED IN THE IPO

20%

3% 8%

13%

16%

17%

23% 970,000,000 shares

(21.7% of enlarged TSO) were offered to public market

at IDR1,500 per share

The 2013 P/E valuation is about 10.7X, with MPMX

price at IDR 1,300

Has been executed

To be executed

220 MPMRent acquisition

of SAK (1,280 cars)

225 MPMRent purchase

new cars

115 Loan repayment

175 MPMAuto build dealers

300 FKT 17% stake acquisition

45 MPMRent organic & inorganic opportunities

275 FKT factory

1,355 Net IPO proceeds




1Q14 Summary & Business Segments Performance Stable 2W business despite natural disasters, Strong 4W business growth


1Q14 Summary & Business Segments Performance Stable 2W business despite natural disasters, Strong 4W business growth

13


14

2W DISTRIBUTION & RETAIL: MANAGING PRUDENT GROWTH

736 905 970

FY12 FY13 FY14E

+7% +23%

448 480

1H13 1H14

+7%

Sales Volume (000 units, YoY%)

211 266 278

FY12 FY13 FY14E

+4.5% +26%

Revenue (IDR B, YoY%)

NPAT (IDR B, YoY%)

1H14 Highlights

FY14 Initiatives

• 1H14: volume impacted by flooding in Jan ‘14 and Kelud volcano eruption in Feb ’14

• Achieved record sales of 100,144 units during Jun’ 14

• Received top awards from AHM for digital channels including “top positions” in the following categories:

- Facebook

- Twitter

• Manage more efficient distribution by adding 1 warehouse to cater Southern area of E. Java

• Increase retail sales volume by adding sales points and review financing sales portion

• Focus on operational improvement and CRM activities

Mulia

99 110 123

FY12 FY13 FY14E

+12% +11%

53 54

1H13 1H14

+2% MSO

9,112

FY12 FY13 FY14E

11,602 13,128

+13% +27%

1H13 1H14

6,398 5,637

+13%

139 152

1H13 1H14

+9%

15

4W DEALERSHIP: READY TO LAUNCH

Sales Volume (Car Units, YoY%)

0 -0.3

(14)

FY12 FY13 FY14E

NPAT (IDR B, YoY%)

1H14 Highlights

FY14 Initiatives

• MPMX 1st dealer was opened in Enggano, North Jakarta... For Nissan & upcoming Datsun brand

• Opened first Nissan U-cars dealer in Indonesia

• Launched New Teana in Mar’14, Datsun Go+ in May’14 and New Elgrand in Jun’ 14

• Open 7 dealers nationwide focusing on “3S”: showroom, services, and spare parts

• Tap into e-community channels + loyalty programs

• Partners with major financing companies & local partners

• Nissan to launch New X-Trail during Q3 or Q4:

- (3)

1H13 1H14

16,670

FY12 FY13 FY14E1H13 1H14

475

- 130

3,500

-


0

FY12 FY13 FY14E

1,444 570

1H13 1H14

100

387 - - 23

- (0)

FY12 FY13

16

CONSUMER PARTS: CONTINUING BRAND BUILDING & DISTRIBUTION ACTIVITIES IN FKT(1) TO INCREASE GROWTH

FY12 FY13 FY14E

+11% +8%

1H13 1H14

+0%

Sales Volume (KL, YoY%)

202 218 250

FY12 FY13 FY14E

+15% +8%


NPAT (IDR B, YoY%)

1H14 Highlights

FY14 Initiatives

• Revenue and NPAT steady growth at +7%

• Lingering effect from election affecting sales to wholesalers

• Awarded Top Brand and WOW Brand Award during 1H14

• Ongoing ATL and BTL marketing and promotion activities to strenghten brand equity

• Focus on higher growth MATIC segment: product/SKU refinement and new product formulation introduction

• Continue feasibility study on blending plant expansion + operational efficiencies

• Tap into 4W lubricant business: develop suitable 4W lubricant formulation, manufacture, promote and market own 4W branded products

1,286

FY12 FY13 FY14E

1,444

1,727

+20% +12%

1H13 1H14

814 756

+8%

119 130

1H13 1H14

+9%

32,124 32,176 56,393 60,632

67,000

(1) FKT = PT Federal Karyatama through its lubricant brand

17

AUTO SERVICES: STRONG PIPELINE, FOCUS ON OPERATIONAL IMPROVEMENTS

FY12 FY13 FY14E

+19%

+69%

1H13 1H14

+44%

Fleet Size (Units, YoY%)

60 83

92

4.5 FY12 FY13 FY14E

+11% +38%


NPAT (IDR B, YoY%)

1H14 Highlights

FY14 Initiatives

• Launched drivers training school in Mar ‘14 ... Key differentiator for corporate customers

• Average length of contract: 2.5 years

• Key Customers:

• Revenue & margin enhancement

– Portfolio rebalancing in customer segments, vehicle types, and products

– Optimum driver service quality

• Expand network out side Java

– Focus on quality customers rental rate and cost efficiencies

• Expand focus from B2B to B2C

562

FY12 FY13 FY14E

938 1,185

+26% +67%

1H13 1H14

571

416

+37%

38 46

1H13 1H14

+21%

10,751

15,460

7,991

13,502

16,017

• Top New Customers:

18

MPMFINANCE: MERGER TO STRENGTHEN FRONT-END AND BACK END CAPABILITIES

3,778 4,424 4,779

FY12 FY13 FY14E

+8% +17%

1H13 1H14

+20%

New Booking (IDR B, YoY%)

811 979

1,300

FY12 FY13 FY14E

+33% +21%

470 569

1H13 1H14

+21%

94 141

178

FY12 FY13 FY14E

+26% +50%

1H13 1H14

69

+5%


NPAT (IDR B, YoY%)

1H14 Highlights

FY14 Initiatives

• Execute merger with SAF with JACCS as 40% partner

• Steady growth in new booking, contributed equally between financial lease and 2W + 4W financing

• Revenue offset by opex and additional provisionings due to commodity business situation outside Java

• NPL Performance (>90 days):(1)

• Seamless post-merger integration of SAF with MPMFinance

• Diversify new product offerings, especially to support the growth of MPMAuto (Nissan & Datsun dealership)

• Establish Risk Management Directorate

• Increase collection efforts to reduce NPL to become <2.0%

(1) Note: Assume combined MPMFinance and SAF financials for FY14E

1,646 1,975

66

2.2% 2.6%

Jun '13 Jun '14

19

MPMINSURANCE: STRONG GROWTH THROUGH GROUP AND NON-GROUP BUSINESSES

Gross Premium (IDR B, YoY%)

5

15

FY12 FY13 FY14E

1

+200%

+400%

1H13 1H14

+350%

NPAT (IDR B, YoY%)

1H14 Highlights

FY14 Initiatives

• Additional businesses generated via co-operation with insurance brokers servicing both wholesale and individual market

• 10 nationwide representative offices are registered (Jakarta, Surabaya, Medan, Bandung, Denpasar, Bogor, Pekanbaru, Makasar, Malang and Semarang)

• Open 5 additional locations for representative offices in FY14

• Build a solid management information system to support decision making process

• Increase new partnerships with banks, financing companies and brokers

2

9

76

FY12 FY13 FY14E

151

+99%

+1,420%

33

60

1H13 1H14

+82%

5




FY14 Outlook [20 - 25%] revenue growth, [8 - 15%] NPATMI growth year-on-year


FY14 Outlook [20 - 25%] revenue growth, [8 - 15%] NPATMI growth year-on-year

20


MPM LOOKING TO MAINTAIN 20+% GROWTH, CONTINUING POSITIVE TRENDS OVER THE LAST 5 YEARS

21

Revenue (IDR Billion)

20+% CAGR

16,500 -

16,700

13,879

10,777

8,453 7,725

FY10 FY11 FY12 FY13 FY14E

NPAT (IDR Billion)

25+% CAGR

540 - 550 526

374

220 213


NPATMI (IDR Billion)

25+% CAGR

600 - 610 564

406

268 250


1H14 SUMMARY AND FY2014 OUTLOOK

22

Key Metrics FY12 FY13 % FY14E % 1H13 1H14 %

Profit & Loss (IDR Billion)

Net Revenue 10.777 13.879 29% 16.500-16.700 19%-20% 6.781 7.848 16%

Gross Profit 1.618 2.024 25% 1.015 1.144 13%

GP Margins 15,0% 14,6% 15,0% 14,6%

Operating Profit 746 901 21% 463 490 6%

OP Margins 6,9% 6,5% 6,8% 6,2%

Net Profit from Cont. Operations 405 564 39% 278 303 9%

NP Margins 3,8% 4,1% 4,1% 3,9%

NPAT 406 564 39% 600-610 6%-8% 278 303 9%

NPAT Margins 3.8% 4,1% 3.6% 4.0% 3.9%

NPATMI 374 526 41% 540-550 3%-5% 248 284 14%

NPATMI Margins 3,5% 3,8% 3.3% 3,7% 3,6%

EBITDA 958 1.254 31% 1.440-1.450 15%-16% 606 681 12%

EBITDA % of Revenue 8,9% 9,0% 9% 8,9% 8,7%

1H14 SUMMARY AND FY2014 OUTLOOK (CONTINUED)

23 (1) MPMFinance and SAF

Key Metrics FY12 FY13 % FY14E % 1H14 %

Balance Sheet (IDR Billion)

Cash 1,192 1,103 -7% 1,055 -4% 1,061 -4%

ST & LT Loans*) 1,911 1,987 4% 2,826 42% 2,583 30%

MCNs 1,010 - - - - - -

Bank Funding for SAF and MPMFinance 3,216 3,551 10% 4,200 18% 3,455 -3%

Book Value of Equity 1,837 4,395 139% 5,339 21% 5,203 18%

Ratios

Net Debt / Equity 2.69x 1.01x 1.12x 0.96x

Net Debt / Equity without SAF and MPMF 0.39x 0.20x 0.33x 0.29x

ROA 4.51% 5.05% 4.20x 4.61%

Debt / EBITDA 5.35x 4.42x 4.88x 4.40x

Debt / EBITDA without SAF and MPMF 1.99x 1.58x 1.96x 1.88x

Disclaimer

24

• These materials have been prepared by PT Mitra Pinasthika Mustika Tbk (the “Company”, “MPM”) and have not been independently

verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or

completeness of the information presented or contained in these materials. The Company or any of its affiliates, advisers or

representatives accepts no liability whatsoever for any loss howsoever arising from any information presented or contained in these

materials. The information presented or contained in these materials is subject to change without notice and its accuracy is not

guaranteed.

• These materials may contain statements that constitute forward-looking statements. These statements include descriptions

regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of

operations and financial condition of the Company. These statements can be recognized by the use of words such as “expects,”

“plan,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking statements are not guarantees of

future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements

as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking

statements to reflect future events or circumstances.

• These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer

to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied

upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to purchase or subscribe

for any securities of the Company should be made after seeking appropriate professional advice.

Documents

Investor & Analyst Gathering - MPM | We Are Smart Mobilitympmgroup.co.id/public/uploads/2014/08/2014.08.25 MPMX Analyst... · Investor & Analyst Gathering 28 August 2014 ... ADIRA