Earnings Slide 17 Feb 2015
Matahari Department Store
Q4 2014/ FY 2014 Results Update
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Key Highlights Q4 2014 and FY 2014
Financial Update
Summary
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• Total gross sales increased by 10.9% over LY to Rp3,442 bn
• Delivered a 8.7% comp store sales growth
• Merchandise gross margin increased to 35.2% of gross sales, up 50 bps over LY
• EBITDA increased by 13.1% over LY to Rp557 bn, at 16.2% of gross sales (30 bps
over LY)
• Comparable and reported net income increased by 43.1% from Rp251 bn in Q4
2013, compared to Rp359 bn in Q4 2014
Key Highlights Q4 2014
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• Gross sales increased by 13.2% over LY to Rp14,421 bn
• Delivered a FY comp sales growth of 10.7%
• Merchandise gross margin increased to 34.9% of gross sales, up 80 bps over
LY
• EBITDA increased by 15.0% to Rp2,411 bn, at 16.7% of gross sales (20 bps
over LY)
• Comparable net income* increased by 31.0% from Rp1,150 bn in FY 2013 to
Rp1,507 bn in FY 2014
• Reported net income increased by 23.4% over LY to Rp1,419 bn
FY 2014 Recap
*Comparable Net Income: 2014 net income income excludes the one-off amortization of loan fees and the charge in Q1 (See Q2 earnings slides for detail)
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2,096 2,411 1 501 1,001 1,501 2,001 2,501 3,001 FY2013 FY2014 1,150 1,419 200 400 600 800 1,000 1,200 1,400 1,600 FY2013 FY2014 IDR Bn Gross Sales SSSG IDR Bn EBITDA EBITDA Margin IDR Bn
Reported Net Income
Net Income Margin
Financial Snapshot FY2014
6 Comparable Net Income
12,735 14,421 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 FY2013 FY2014 12.1%
10.7% 16.7%
16.5% 1,150 1,507 500 1,000 1,500 2,000 FY2013 FY2014 9.0% 10.5% 9.0% 9.8%
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DP, 34.0%
CV, 66.0% DP, 32.0%
CV, 68.0%
DP, 33.6%
CV, 66.4% DP, 32.6%
CV, 67.4%
MDS’s exclusive brands
continue to deliver strong performance
DP accounted for 34.0% of gross sales in FY14, as compared to 32% in FY 2013 % of Gross Sales
FY13 FY14
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8 8
East Java
16 stores (9 cities)
Sumatra
22 stores (11 cities)
(2 new stores)
Kalimantan, Bali and East Indonesia
West Java
10 stores (7 cities)
Greater Jakarta
36 stores (11 cities)
(2 new stores)
Central Java
MDS Store Overview
No. of Stores
As of 31 Dec 2013 125
Added up to December 2014 8 Closed up to December 2014 2
Total 131
17 stores (8 cities)
30 stores (16 cities)
(4 new stores)
Retail store network as of December 2014
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oOpened 6 new stores in 4Q14 (1 in Oct, 1 in Nov and 4 in Dec), to give a total of 8 new store openings in 2014
oIn 2015, we are forecasting 12-14 new store openings
Opened 8 new stores in 2014; Forecasting 12-14 new stores in 2015
No Geographic area
As at 31 Dec 2013 As at 31 Dec 2014 2015F Future Pipeline 2016 onwards
# of stores % mix # of stores % mix # of stores # of stores % mix
1 Jabodetabek (Greater Jakarta) 35 28.0% 36 27.5% 1 15 23.1%
2 Java (Exc Greater Jakarta) 44 35.2% 43 32.8% 4-5 20 30.8%
3 Outside Java 46 36.8% 52 39.7% 7-8 30 46.2%
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Indonesia’s Most Preferred Department Store 10
Financial Update
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3,102 3,442 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 Q4'13 Q4'14 12,735 14,421 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 FY'13 FY'14 IDR Bn
Strong sales growth continues
Q4 FY 10,867 12,735 5,000 10,000 FY'12 FY'13
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12.1%
10.7%
FY13 FY14
13.3%
8.7%
Q4'13 Q4'14
SSSG %
Driven by improved double-digit same-store sales growth
11.1%
12.1%
FY12 FY13
Average 11.6%
12
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3,685 4,348 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 FY12 FY13 4,348 5,029 1 1,001 2,001 3,001 4,001 5,001 6,001 FY13 FY14 1,075 1,210 1 501 1,001 1,501 Q4'13 Q4'14
Gross profit and margins IDR Bn
Merchandise margins continue to strengthen
Gross profit as a % of Gross Sales
34.7%
35.2%
33.9%
34.1% 34.1%
34.9%
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18.8% 19.0%
Q4'13 Q4'14
17.2% 17.7%
FY12 FY13
14.0% 14.0%
FY13 FY14
Opex(1) as a % of Gross Sales
Expenses came in lower than planned, with stores continuing to offset
labor cost increases with operational efficiencies
Note
1. Opex calculated as Adjusted Gross Profit less Adjusted EBITDA
14
Comp store
Total Company
14.8% 14.5%
Q4'13 Q4'14
17.7% 18.2%
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2,096 2,411 1 501 1,001 1,501 2,001 2,501 3,001 FY13 FY14 493 557 100 200 300 400 500 600 Q4'13 Q4'14 1,819 2,096 FY12 FY13
EBITDA and Margins IDR Bn
EBITDA grew by 13.1% in Q4 2014, YTD up 15.0%
EBITDA as a % of Gross Sales
15.9% 16.2% 16.7% 16.5% Q4 FY 16.7% 16.5% Notes
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251 359 100 200 300 400
Q4 '13 Q4 '14
251 359 100 200 300 400
Q4 '13 Q4 '14
1,150 1,507 200 400 600 800 1,000 1,200 1,400 1,600 FY13 FY14 1,150 1,419 200 400 600 800 1,000 1,200 1,400 1,600 FY13 FY14 771 1,150 FY12 FY13
Net Income and Margins
FY2014 comparable net income increased by 31.0% over 2013
IDR Bn
Net Income as a % of Gross Sales
8.1% 7.1%
9.0%
16
Q4 FY
Reported Net Income
9.0%
10.5%
Comparable Net Income
9.0%
9.8% 10.4%
8.1%
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1,669
1,569 1,650
1,280
700
2013 1Q14 1H14 9M14 FY14
Total Gross Debt (in Rp Billion)
In 4Q14, we made additional payments of Rp580bn
As of end of 31 December 2014, our total gross debt balance is Rp700bn As at year end 2014 the Company was
in a net cash position
Commentary
Notes
1. Effective interest rate is computed by dividing interest expense (excluding amortization of upfront fees) during the relevant period by beginning gross debt of the relevant period
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Sales Growth and SSSG by region
Strong comp performance across geographic regions
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Geographic Area Stores as at Dec 2014
Store Mix % to Total
Sales (IDR Bn)
Total Sales % growth YTD
SSSG%
Q4’ 2014
SSSG% FY 2014
Greater Jakarta 36 27.5% 4,188 45.6% 5.3% 7.4%
Java exclude Greater
Jakarta 43 32.8% 4,762 49.7% 14.2% 14.8%
Outside Java 52 39.7% 5,471 53.0% 7.0% 9.7%
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IDR Bn
Key Profit & Loss Items
Financial Summary
4Q13 3Q14 4Q14 FY2013 FY2014
Gross Sales 3,102.0 5,008.1 3,441.5 12,735.0 14,421.4
SSSG 13.3% 9.7% 8.7% 12.1% 10.7%
Growth 18.1% 12.0% 10.9% 17.2% 13.2%
Net Revenue 1,646.0 2,710.5 1,886.1 6,754.3 7,925.5
Growth 20.5% 14.5% 14.6% 20.2% 17.3%
Gross Profit 1,074.9 1,722.7 1,210.4 4,347.8 5,028.6
Margin 34.7% 34.4% 35.2% 34.1% 34.9%
EBITDAR 702.3 1,255.9 797.4 2,912.4 3,352.7
Margin 22.6% 25.1% 23.2% 22.9% 23.2%
EBITDA 492.7 1,000.7 557.3 2,095.8 2,411.1
Margin 15.9% 20.0% 16.2% 16.5% 16.7%
Income before tax 343.5 880.1 460.4 1,523.6 1,850.5
Margin 11.1% 17.6% 13.4% 12.0% 12.8%
Reported net Income 250.7 698.7 358.7 1,150.2 1,419.1
Margin 8.1% 14.0% 10.4% 9.0% 9.8%
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Indonesia’s Most Preferred Department Store 20
Summary
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Sales and earnings results in 2014 were in line with expectations, and reflect a continuing strength in consumer demand in our middle income segment
Improvements were achieved in both Direct Purchase and Consignment
margins during 2014, and are expected to continue into 2015
Expense pressures were offset by merchandise margin improvements
enabling the Company to improve EBITDA margins to 16.7%
Accelerated debt payments continued into Q4, with the Company ending
the year in a net cash position
Robust store pipeline for 2015 and beyond indicates an opportunity for
acceleration in store openings going forwards
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Indonesia’s Most Preferred Department Store 22
End of Presentation
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1,669
1,569 1,650
1,280
700
2013 1Q14 1H14 9M14 FY14
Total Gross Debt (in Rp Billion)
In 4Q14, we made additional payments of Rp580bn
As of end of 31 December 2014, our total gross debt balance is Rp700bn
As at year end 2014 the Company was in a net cash position
Commentary
Notes
1. Effective interest rate is computed by dividing interest expense (excluding amortization of upfront fees) during the relevant period by beginning gross debt of the relevant period 2. Total debt comprises of the bank loan
Debt continues to be paid down at an accelerated rate
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Sales Growth and SSSG by region
Strong comp performance across geographic regions
Geographic Area Stores as at Dec 2014
Store Mix % to Total
Sales (IDR Bn)
Total Sales % growth YTD
SSSG%
Q4’ 2014
SSSG% FY 2014
Greater Jakarta 36 27.5% 4,188 45.6% 5.3% 7.4%
Java exclude Greater
Jakarta 43 32.8% 4,762 49.7% 14.2% 14.8%
Outside Java 52 39.7% 5,471 53.0% 7.0% 9.7%
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IDR Bn
Key Profit & Loss Items
Financial Summary
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4Q13 3Q14 4Q14 FY2013 FY2014
Gross Sales 3,102.0 5,008.1 3,441.5 12,735.0 14,421.4
SSSG 13.3% 9.7% 8.7% 12.1% 10.7%
Growth 18.1% 12.0% 10.9% 17.2% 13.2%
Net Revenue 1,646.0 2,710.5 1,886.1 6,754.3 7,925.5
Growth 20.5% 14.5% 14.6% 20.2% 17.3%
Gross Profit 1,074.9 1,722.7 1,210.4 4,347.8 5,028.6
Margin 34.7% 34.4% 35.2% 34.1% 34.9%
EBITDAR 702.3 1,255.9 797.4 2,912.4 3,352.7
Margin 22.6% 25.1% 23.2% 22.9% 23.2%
EBITDA 492.7 1,000.7 557.3 2,095.8 2,411.1
Margin 15.9% 20.0% 16.2% 16.5% 16.7%
Income before tax 343.5 880.1 460.4 1,523.6 1,850.5
Margin 11.1% 17.6% 13.4% 12.0% 12.8%
Reported net Income 250.7 698.7 358.7 1,150.2 1,419.1
Margin 8.1% 14.0% 10.4% 9.0% 9.8%
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Summary
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Sales and earnings results in 2014 were in line with expectations, and reflect a continuing strength in consumer demand in our middle income segment
Improvements were achieved in both Direct Purchase and Consignment
margins during 2014, and are expected to continue into 2015
Expense pressures were offset by merchandise margin improvements
enabling the Company to improve EBITDA margins to 16.7%
Accelerated debt payments continued into Q4, with the Company ending
the year in a net cash position
Robust store pipeline for 2015 and beyond indicates an opportunity for
acceleration in store openings going forwards
Summary
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