6
48.6 15.3
6.8 29.3
PT Saratoga Investama Sedaya
Tbk Affiliates Morninglight Investment S.a.r.l
Claris Investment Pte. Ltd. Public Others
Board of Commissioners
Strong mix of operational, strategy, MA, and governance expertise
Board of Directors
Over 100 years of combined professional experience
Rudy Halim
Group CEO
Troy Parwata
Group CFO
Agung Kusumo
Managing Director
Titien Supeno
HR Director
Andi Esfandiari
Director
Edwin Soeryadjaya
Chairman
Tossin Himawan
Commissioner
Danny Walla
Commissioner
Lee Chul Joo
Commissioner
Istama Siddharta
Independent Commissioner
Simon Halim
Independent Commissioner
Shareholding
Resource: MPMX, as of 31 Mar 2017
7
Resource: MPMX, as of 31 Mar 2017
16 MPMInsurance Offices Outlets
47 FKT Distributors for Federal Oil Federal
Mobil 33 MPMRent Offices
Service Points 10 MPMAuto Dealers
83 MPMFinance Offices Outlets
40 MPMotor Retail Outlets
290 MPMulia Dealers
8
01 MPM: Company Highlights
02 Consolidated Financial Results: FY 16 and 1Q 17 Updates
03 Business Segment Performance
9
Revenues 1Q17
Rp 4.0T
-12.6 QoQ, -4.5 YoY
75 10
7 8
1 Non Financial Services : Mulia, MPMMotor, FKT, PMP, MPMAuto, MPMMobil, MPMRent, Grahamitra, DSS SAK
2 Financial Services : MPMFinance MPMInsurance
-7 -5
+12 +11
252 21
32 31
26
YOY 1Q16
1Q17 3,959
4,143
-4.5
YoY revenue growth
Distribution Retail Consumer Parts
Auto Services Financial Services
Elimination
Revenues Growth YOY, in Rp billion
Summary
Lower sales from Distribution Retail is due to limited product availability of 4W and unfavourable weather affecting 2W sales Lubricant sales decrease slightly on the back of year-end promotion and slow traffic to outlets
Higher revenue from Auto Services due to achieving better disposal value Financial Services booked higher new bookings during the period
10
10 8
44 38
10 20
30 40
50
Financial Services Auto Services
Auto Consumer Parts Distribution Retail
Rp 129B
81.0 QoQ, 80.2 YoY
NPATMI 1Q17
1 Non Financial Services : Mulia, MPMMotor, FKT, PMP, MPMAuto, MPMMobil, MPMRent, Grahamitra, DSS SAK
2 Financial Services : MPMFinance MPMInsurance
YOY
-23 -2
+137 +781
+80 11
1 7
41 38
72 1Q16
1Q17 129
17
+74 -901
YoY NPATMI growth
Distribution Retail Consumer Parts
Auto Services Financial Services
Head Office
Minority Interest
NPATMI Growth YOY, in Rp billion
Summary
One-off gain of Rp36B from the sale of fixed asset attributed from Head Office Lower COF and higher asset quality drive the significant rise in NPATMI from Financial Services
NPATMI in Distribution Retail fell due to the low 4W sales as a result of limited product availability
11
Financial Highlights in Rp billion
Net Revenues Gross Profit
NPATMI EBITDA
CAPEX 1Q17
3,959 627
129 366
124
QoQ
-12.6 -16.9
81.0 3.4
-30.5
YoY
-4.5 4.3
80.2 36.3
-24.4
1Q17 3,650
413 102
307 122
QoQ
-13.0 4.8
422.7 27.9
-30.6
YoY
-5.5 -3.3
46.2 14.8
-25.0
1Q17
322 225
46 59
2
QoQ
-7.5 -39.1
-47.3 -48.1
-20.9
YoY
10.7 23.0
1105.9 5899.5
37.6
Consolidated Non Financial Services
Financial Services
Summary
Strong growth in earnings recorded +80 YoY, due to overall improvement in operations across all business Excluding one-off gain on sale of fixed assets Rp 36B, earnings during the period grew by 30 YoY
Slight decline in revenue -4.5 YoY, lower sales especially in 4W business due to limited product availability
1 Non Financial Services : Mulia, MPMMotor, FKT, PMP, MPMAuto, MPMMobil, MPMRent, Grahamitra, DSS SAK
2 Financial Services : MPMFinance MPMInsurance
NPAT
Rev
- 15.8
3.3 9.3
3.1
Rev
- 11.3
2.8 8.4
3.3
Rev
- 69.9
14.2 18.3
0.6
12
Financial Highlights in Rp billion
Net Revenues Gross Profit
NPATMI EBITDA
CAPEX FY16
17,723 2,631
361 1,289
792
FY15 16,640
2,299 285
1,160 876
YoY
6.5 14.5
26.6 11.1
-9.6
FY16 16,509
1,728 290
1,144 785
FY15 15,471
1,581 254
1,093 851
YoY
6.7 9.3
14.0 4.7
-7.8
FY16 1,259
938 121
145 7
FY15 1,209
745 54
67 25
YoY
4.1 25.9
124.7 117.5
-73.9
Consolidated Non Financial Services
Financial Services
Summary
FY16 earnings grew by 27 YoY, driven by successful implementation of key strategic initiatives by the management Revenue grew by 7 YoY, highlighted by robust sales in 2W despite the downward trend nationwide in 2016
1 Non Financial Services : Mulia, MPMMotor, FKT, PMP, MPMAuto, MPMMobil, MPMRent, Grahamitra, DSS SAK
2 Financial Services : MPMFinance MPMInsurance
NPAT
Rev
- 14.8
2.0 7.3
4.5
Rev
- 10.5
1.8 6.9
4.8
Rev
- 74.5
9.6 11.5
0.5
13
Cash and Cash Equivalents Total Asset
Bank Funding Bonds
MTN BV of Equity
1Q17
812 14,802
4,061 2,631
300 5,828
QoQ
-36.8 -0.8
-5.4 -2.4
- 3.2
YoY
-46.2 1.8
1.9 0.9
- 6.0
1Q17
540 9,177
335 2,631
- 4,806
QoQ
-45.4 -3.7
-55.1 -2.4
- 3.2
YoY
-45.0 -5.8
-54.4 0.9
- 5.5
1Q17
272 6,562
3,726 -
300 1,937
QoQ
-7.7 3.8
5.1 -
- 1.7
YoY
48.6 14.6
14.7 -
- 4.1
Consolidated Non Financial Services
Financial Services
1 Non Financial Services : Mulia, MPMMotor, FKT, PMP, MPMAuto, MPMMobil, MPMRent, Grahamitra, DSS SAK
2 Financial Services : MPMFinance MPMInsurance
2.2x 0.5x
6.2 3.3
3.8x
Net DebtEBITDA Net DebtEquity
ROE ROA
FCCR
4.6x 1.1x
8.3 3.3
4.7x 4.2x
1.1x 7.5
2.8 4.2x
4.9x 0.9x
5.3 2.0
3.6x 2.6x
0.5x 1.7
0.8 2.8x
2.2x 0.5x
6.1 2.9
3.6x 15.8x
1.9x 9.5
2.8 -
7.8x 1.9x
18.2 5.5
- 724.1x
1.5x 0.8
0.3 -
Annualize figure
Cash and NFS Bank Funding level decreased driven by positive effect of centralized treasury center ROE ROA improvement significantly due to increased in net profit
Improved FCCR due to lower interest expenses
1Q17 4Q16
1Q16 1Q17
4Q16 1Q16
1Q17 4Q16
1Q16
14
Cash Total Asset
Bank Funding Bonds
BV of Equity FY16
1,285 14,926
4,293 2,696
5,647 FY15
1,484 14,480
4,338 2,754
5,340
YoY
-13.4 3.1
-1.0 -2.1
5.8
FY16
990 9,534
747 2,696
4,657 FY15
1,160 9,741
936 2,754
4,399
YoY
-14.6 -2.1
-18.6 -2.1
-5.8
FY16
295 6,325
3,546 -
1,905 FY15
324 5,671
3,402 -
1,855
YoY
-9.0 11.5
4.2 -
2.7
Consolidated Non Financial Services
Financial Services
1 Non Financial Services : Mulia, MPMMotor, FKT, PMP, MPMAuto, MPMMobil, MPMRent, Grahamitra, DSS SAK
2 Financial Services : MPMFinance MPMInsurance
2.2x 0.5x
6.2 3.0
3.4x
Net DebtEBITDA Net DebtEquity
ROE ROA
FCCR
4.7x 1.1x
7.3 2.7
3.9x 4.8x
1.1x 5.8
2.1 3.6x
- -
- -
- 2.3x
0.6x 5.8
2.6 3.4x
- -
- -
- -
1.9x 6.3
1.9 -
- 1.7x
2.9 0.9
- -
- -
- -
Cash and NFS Bank Funding level decreased due to the Centralized treasury center impact Great improvement on ROE and ROA due to the increased net profit
15
Financial Highlights in Rp billion
1Q17
5.2 250
103 45
17 4
Summary
Focus on productivity such as Revenue per Head Count
Continusly monitoring OPEX items especially CB, AP and TS
AP has increased due to 2W slow demand as well as reclassification of 2W OHC cost in Dec’16 to COGS
Lower provision number reflects better quality of assets booked from MPMFinance
Optimization of Capital Structure and reduce overall cost of funding
Set up Treasury centre to manage funds more efficiently within the group and reduce admin expenses
1 Non Financial Services : Mulia, MPMMotor, FKT, PMP, MPMAuto, MPMMobil, MPMRent, Grahamitra, DSS SAK
2 Financial Services : MPMFinance MPMInsurance
Revenue HC Total Opex
• CB • AP
• TS • Provision
Average CoF 1Q17
3.6 412
170 51
18 74
8.8
Consolidated Non Financial Services
Financial Services QoQ
-17.4 -27.5
-1.8 88.1
-29.3 -54.2
YoY
-4.3 -5.7
-1.5 -9.8
-11.6 -16.7
QoQ
-20.2 -21.2
1.1 108.6
-29.4 -73.0
YoY
-9.8 -4.0
-1.2 -15.1
-12.1 9.5
1Q17
0.8 181
67 6
1 70
QoQ
-8.2 -33.3
-6.0 9.3
17.1 -52.3
YoY
19.8 -7.5
-2.0 65.0
38.6 -17.9
Rev
- 10.6
4.3 1.3
0.4 1.9
Rev
- 6.9
2.8 1.2
0.5 0.1
Rev
- 56.3
20.9 1.9
0.1 21.7
Note: CB:
Compensation Benefit
AP: Advertising Promotion
TS: Transport Storage
16
AR Days AP Days
Inventory Days 1Q16
18.8 30.3
22.4
YoY
-11.5 -14.6
-0.6
Operational Highlights
Non Financial Services
Summary
Focus on generating positive and growing OCF Decreasing operating CF and increasing financing CF of FS
are due to growing new booking of MPMFinance Lower Financing CF of NFS indicate less reliance on new
borrowing Shortened AR days show improvement in cash collection
1,285
-165 -82
-226 812
1,484
303 -146
-130 1,511
1Q16
Beginning Balance
Operating Activities
Investing Activities
Financing Activities
Ending Balance
1Q17
1Q17 Cash Flow in Rp billion
Beginning Balance CF from Operating
CF from Investing CF from Financing
Ending Balance 1Q17
1,285 -165
-82 -226
812
YoY
-13.4 -154.4
43.9 -73.4
-46.2 1Q17
990 47
-71 -426
540
YoY
-14.6 -71.3
48.8 -109.5
-45.0
1Q17
295 -212
-11 200
272
YoY
-9.0 -252.6
-53.3 173.9
-48.6
Consolidated Non Financial Services
Financial Services
1 Non Financial Services : Mulia, MPMMotor, FKT, PMP, MPMAuto, MPMMobil, MPMRent, Grahamitra, DSS SAK
2 Financial Services : MPMFinance MPMInsurance
1Q17
16.6 25.9
22.3
17
Summary
Kick off Accelerate Collaborative Economy initiative within MPM Group
Focus on Financing and Insurance penetration to MPM’s distribution and retail business Launch MPM Planet initiative through RallyPoint App
Ecosystem to build customer engagement and loyalty
18
MPMX JACCS Plans in MPMFinance
Established as 60:40 JV between MPMX and JACCS
after the merger between SAF and MPMFinance.
Jun ‘14
MPMX announced plan to sell partial stakes in MPMFinance
to JACCS. MPMX will to hold 40 and JACCS to hold 60 in
MPMFinance post transaction.
Feb ‘17
MPMX JACCS announced formal signing of definitive
agreement. MPMFinance will be deconsolidated from MPMX.
JACCS will take the lead of the direction and MPMX to support
through its network, while allowing access to diversified
and competitive funding sources.
Mar ‘17
Transaction finalization expected to be in 2Q17
2Q17
19
Mulia received Best Performance PIC
Community 2016 from AHM
Jan’17
MPM received The Most Innovative
Business Award 2017 for category
Wholesale from Warta Ekonomi
Feb’17
FKT received Top Brand Award 2017 category
2W Engine Lubricant for its brand Federal Oil
Feb’17
Federal Oil received Silver Champion of
Indonesia WOW Brand 2017 for category 2W
engine lubricant
Mar’17
MPM rebranding with its new vision mission
Mar’17
20
01 MPM: Company Highlights
02 Consolidated Financial Results: FY 16 and 1Q 17 Updates
03 Business Segment Performance
21
902 912
897 FY15
FY16 1Q17
-2
Revenue in Billions of Rupiah, YoY
Sales Volume Unit in thousands, YoY
+1
261 338
339 FY15
FY16 1Q17
+30
Mulia
129 132
131 FY15
FY16 1Q17
+2
MSO
FY15 FY16
1Q17 14,459 14,365
+7
13,544
-0
-1
+0
9,823
NPAT
in Billions of Rupiah, YoY
1Q17 Highlights
Overall sales volume in 1Q17 was slightly lower than 1Q16 but well above industry average due to the following:
o
Unfavorable weather condition affected the local economy, thus lower purchasing power.
o
Higher inventory at dealers.
o
The national motorcycle sales slipped 8 YoY to 1.4M.
Key Initiatives
o
Launch of new scooter sport motorcycles.
o
Ramp up sales promotion activities to consumer, dealers, and financing companies.
o
Improve cost efficiency by relocating outsourced labor.
o
Finalize third warehouse construction to lower rental costs.
o
Continuously improve current business processes.
CONTINUE LEADERSHIP IN E. JAVA AND NTT
1Q16 1Q17
1Q16 1Q17
72 73
1Q16 1Q17
1Q16 1Q17
212 197
29 28
3,184 3,278
-7
-2
-3
+0
22
-85 -102
-112
IMPROVE SALES PRODUCTIVITY SERVICE LEVEL
Sales Volume Units, YoY
1Q17 Highlights
Overall sale volume was decreased in 1Q17 due to the following: o
528 units of Nissan-Datsun cars were sold, representing a 66 decrease from the same period due to the limited
product availability.
Key Initiatives
o Focus on operational efficiency and sales productivity as
well as after-sales service quality to the customers for the rest of the year.
FY15 FY16
1Q17
-22 +29
-13
260
-10
9,823
NPAT in Billions of Rupiah, YoY
Revenue
in Billions of Rupiah, YoY
FY15 FY16
1Q17 FY15
FY16 1Q17
773 619
+20
643
-20
1Q16 1Q17
1Q16 1Q17
256
-25 -35
1Q16 1Q17
1,551 528
102
-66
-60
-38
3,680 4,755
3,732
23
FKT maintained stable performance despite the slowdown in the economy. Here are the drivers:
o Low consumer traffic to retail outlets due to weather
impacted the level of demand. o
Steady profit illustrates a solid foundation of the business.
Key Initiatives
o Federal Oil 2W
o
Strengthen channel development
o
Increase product quality o
Federal Mobil 4W
o
Focusing on market growth outside of Jakarta and Surabaya
o
Improve B2B channels
Sales Volume Units in thousand litres, YoY
FY15 FY16
1Q17
+7
260 9,823
NPAT
in Billions of Rupiah, YoY
Revenue in Billions of Rupiah, YoY
-0
FY15 FY16
1Q17 1,675
1,651 1,582
-1
59,200 63,341
63,320
-0 1Q17 Highlights
1Q16 1Q17
-7
14,590
1Q16 1Q17
-6
69 69
1Q16 1Q17
-0 -10
48 253
+6
15,611
409 385
272 272
1Q17 FY16
FY15
24
1
8
-
33
1Q17 Highlights
MAINTAIN OPERATIONAL EXCELLENCE CASH FLOW
An excellent first quarter for MPMRent. Here is the summary: o
Strong net profit delivered, representing a significant growth from last year.
o Fleet size grows steadily.
o Strong growth was driven by higher gross profit, OpEx cost
saving, and lower financing cost.
Key Initiatives
o Continue improving operational efficiency and productivity
o Improve the portfolio of corporate clients, including new
offerings to customers
Fleet Size Units, YoY
FY15 FY16
1Q17
+1
260 9,823
NPAT
in Billions of Rupiah, YoY
Revenue in Billions of Rupiah, YoY
+2
FY15 FY16
1Q17 1,091
1,092 1,123
-3 +0
13,935 14,137 14,425
+700
1Q16 1Q17
+2
1Q16 1Q17
+
266 267
5 12
1Q16 1Q17
+ 169
+103
13,847 14,135
1Q17 FY16
FY15
25
1,185 1,189
1,164
+2 +3
An excellent first quarter performance for MPMFinance, and here is why.
o Asset quality greatly improved, posting NPL level of 2.3 in
1Q17 from 3.3 last year.