earnings 2q17 v8b (3)
July 2017
PT. Matahari Department Store Tbk.
(2)
Table of Content
Indonesia Macro Overview 4
Q2 2017/ 1H 2017 Financials
Key Financial Highlights 6
Sales and DP/CV Mix 7
Same Store Sales Growth 8
Regional GDP, Sales and SSSG 9
Gross Profit and Margin 10
OPEX 11
EBITDA and Margin 12
Net Income and Margin 13
Inventory and Cash Position 14
Operational Updates
Store network 16
Nevada Store 17
Mataharistore.com 18
Strategic Updates 20
Summary 21 Appendix
(3)
Indonesia Macro Overview
(4)
7.26% 7.26% 7.18% 6.83% 6.25%4.89% 3.35% 4.14% 4.42% 4.45% 3.60% 3.33% 3.45% 3.21% 2.79% 3.07% 3.31%3.58% 3.02% 3.49% 3.83% 3.61% 4.17% 4.33% 4.37% Jun -15 Jul -15 A ug -15 S ep -15 O ct -15 N ov-15 D ec-15 Jan -16 Fe b-16 M ar-16 A pr-16 M ay-16 Jun -16 Jul -16 A ug -16 S ep -16 O ct-16 N ov-16 D ec-16 Jan -17 Fe b-17 M ar-17 A pr-17 M ay-17 Jun -17 5.14% 5.03% 4.92% 5.01% 4.71% 4.67% 4.73% 5.04% 4.92% 5.18% 5.02% 4.94% 5.01% 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 111.3 109.9 112.6 97.5 99.3 103.7 107.5 112.6 110.0 109.8 109.0 112.1 113.7 114.2 113.3 113.3 110.0 116.8 115.9 115.4 115.3 117.1 121.5 123.7125.9 122.4 Jun -15 Jul -15 A ug -15 S ep -15 O ct -15 N ov-15 D ec-15 Jan -16 Fe b-16 M ar-16 A pr-16 M ay-16 Jun -16 Jul -16 A ug -16 S ep -16 O ct -16 N ov -16 D ec-16 Jan -17 F eb -17 M ar-17 A pr-17 M ay-17 Jun -17 Inflation
Consumer Confidence Index
Source: Bank Indonesia and BPS
Key Macro-Economic Data
GDP Growth GDP Regional . 4.19% 5.38% 1.97% 4.33% 4.05% 5.66% 4.92% 5.01%
Sumatra Java Kalimantan Eastern Indonesia
(5)
Indonesia Macro Overview
(6)
Key Financial Highlights
Q2 ‘16 Q2 ‘17
5,774 6,802 17.8%
40.0% 14.6%
1,239 1,470 18.6%
913 1,094 19.8%
Gross Sales
EBITDA
Net Income SSSG
IDR Bn
36.4% 36.0% 40 bps
21.5% 21.6% 10 bps
15.8% 16.1% 30 bps
Gross Margin
EBITDA Margin
1H ‘16 1H ‘17
9,034 10,017 10.9%
27.1% 8.0%
1,626 1,859 14.3%
1,157 1,338 15.6%
Gross Sales
EBITDA
Net Income SSSG
IDR Bn
36.0% 36.1% 10 bps
18.0% 18.6% 60 bps
12.8% 13.4% 60 bps
Gross Margin
EBITDA Margin
(7)
35.5%
37.0%
64.5% 63.0%
FY '15 FY '16
37.2% 37.1%
62.8% 62.9%
1H '16 1H '17
IDR Bn
Overall sales increased by 17.8% in 2Q 2017 and 10.9% in 1H 2017
1H
FY Q2
37.4% 37.0%
62.6% 63.0%
Q2 '16 Q2 '17
9,034
10,017
5,774
6,802
DP
CV
DP
CV 15,491
16,347
DP
(8)
SSSG %
SSSG was 14.6% in Q2 2017 and 8% in 1H 2017
FY Q2
40.0%
14.6%
Q2' 16 Q2' 17
6.8%
5.5%
FY' 15 FY' 16
1H
27.1%
8.0%
(9)
East Java Sumatra
Bali and East Indonesia West Java
Greater Jakarta
Central Java
Gross Sales by Region (%) Q2 2017 1H 2017 Greater Jakarta 28.1% 28.4%
Java exc Jkt 36.0% 35.0%
Outside Java 35.9% 36.6%
Total Sales 100.0% 100.0%
GDP growth, SSSG and Sales per region
Kalimantan
>7% 6%< GDP≤ % 5%< GDP≤ % 4%< GDP≤ %
GDP≤ % Negative
Note: Regional GDP as of Q1 2017 Source: Bank Indonesia for GDP growth
SSSG Greater Jkt Q2 : 13.5% 1H : 6.9%
SSSG Java Q2 : 15.4% 1H : 9.9%
SSSG Outside Java Q2 : 14.8%
(10)
2,104
2,450
Q2' 16 Q2' 17
Gross profit and margins
IDR Bn
Merchandise margins declined on seasonality in Q2, up 10 bps in 1H
Gross profit as a % of Gross Sales 36.4%
36.0%
Q2 5,627
6,146
FY' 15 FY' 16
35.2%
35.5%
FY
3,254
3,615
1H' 16 1H ' 17
36.0%
36.1%
(11)
18.6% 18.9%
FY' 15 FY' 16
15.0% 14.4%
Q1' 16 Q2' 17
11.9% 10.8%
2Q' 16 2Q' 17
Opex(1) as a % of Gross Sales
Store opex continues to be managed tightly
Note
1. Opex calculated as Adjusted Gross Profit less Adjusted EBITDA
Total Company Total Company
Comp store Q2
FY
14.4% 13.4%
1H' 16 1H' 17
1H
18.0%
17.5%
(12)
2,661
2,872
FY' 15 FY' 16
FY
16.6% 16.7%
1,239
1,470
Q2' 16 Q2' 17
EBITDA and Margins
IDR Bn
Operating leverage achieved owing to strict cost control measures
EBITDA as a % of Gross Sales
Notes
EBITDA adjusted for severance pay
21.6% 21.5%
Q2
1,626
1,859
1H' 16 1H' 17
18.6% 18.0%
(13)
Net income up by 19.8% in 2Q 2017 and 15.6% in 1H 2017
Net Income as a % of Gross Sales
913
1,094
Q2' 16 Q2' 17
15.8% 9.8%
11.1%
7.6% Net Income (IDR Bn)
1,781
2,020
FY' 15 FY' 16
11.1%
11.7%
Q2 FY
1,157
1,338
1H ' 16 1H' 17
12.8%
1H
16.1%
(14)
Inventory days and cash position improvedINVENTORY DAYS, CASH POSITION AND LOAN BALANCE
CAPEX AND REFURBISHMENTS
FY 2016 FY 2017E
Capex Rp357 Bn Rp400-450 Bn
Refurbishments 16 stores 20-25 stores
End of Mar 2017 End of Jun 2017
LTM Ave. Inventory Days 109 days 112 days
Cash on Hand Rp1,003 Bn Rp 2,550 Bn
Outstanding Bank Loan Balance Rp 0 Rp 0
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(16)
o Opened 4 new stores as of the end of June
2017
o Opened 1 new store in July
o Forecasting a total of 6-8 new stores by the
end of 2017
Store expansion plans on track
28.5% 28.0% 27.5% 27.5% 28.5%
36.2% 35.2% 32.8% 32.4% 31.1%
35.3% 36.8% 39.7% 40.1% 40.4%
2012 2013 2014 2015 2016
Greater Jakarta Java exc Jkt Outside Java
No Geographic area
Actual Forecast
FY2016 As of 30 June 2017 Balance in 2017 Future Pipeline 2018 and onwards # of stores # of stores # of stores # of stores % mix
1 Jabodetabek (Greater Jakarta) 43 43 0 10 19.6%
2 Java (Exc Greater Jakarta) 47 50 1 12 23.5%
3 Outside Java 61 62 1-3 29 56.9%
Total 151 155 2-4 51 100.0%
(17)
o Launch date: October 2016 o Size: 976 sqm
o Future plans: open 1-2 more
stores
Nevada Store
(18)
Q1 2017 Q2 2017
No. of transactions ~67,000 ~133,000 DP: CV sales mix ratio 77:23 83:17 Top 5 exclusive brands
(% to DP online sales) 47% 47%
Nevada
(% to DP online sales) 22% 24%
Mataharistore.com - Q2 2017 Performance
Sales by Region (Q2 2017) Top 5 exclusive brands = 47% of DP Q2 2017 sales
Greater Jakarta, 81% Java excl. G. Jkt, 9% Outside Java, 10% Nevada, 24% Connexion, 7% Little M, 7%
Super T,
5% Cole, 3%
Merchandise Mix (1H 2017)
Youth boy, 20.2% Shoes, 19.6% Children, 14.8%
Men, 12.5% Ladies, 12.2%
Youth girl, 11.4%
Others, 9.2%
(19)
(20)
Strategic Focus
Enhance Product
Offering Optimize Store Space
Increase Cost
Efficiencies Improve Productivity
Grow market share
and protect earnings
(21)
Despite weaker consumption trends, overall sales YTD were up 10.9%, with SSSG of 8% in 1H 2017
Net income grew by 13.4%, with margins improving 60 bps Expansion plans remain on track for the year
On-line sales continue to post strong growth
Strategic initiatives in terms of further improving product assortments, along with strong cost and efficiency programs, are in place to not only withstand against near-term macro headwinds, but also to achieve long-term sustainable growth
(22)
(23)
82.5% 17.5%
PT Matahari Department Store Tbk
Public Multipolar
(24)
(1)
19
(2)
Strategic Focus
20
Enhance Product
Offering Optimize Store Space Increase Cost Efficiencies Improve Productivity
Grow market share
and protect earnings
(3)
Despite weaker consumption trends, overall sales YTD were up 10.9%, with SSSG of 8% in 1H 2017
Net income grew by 13.4%, with margins improving 60 bps
Expansion plans remain on track for the year
On-line sales continue to post strong growth
Strategic initiatives in terms of further improving product assortments, along with strong cost and efficiency programs, are in place to not only withstand against near-term macro headwinds, but also to achieve long-term sustainable growth
Summary
(4)
22
(5)
23
82.5% 17.5%
PT Matahari Department Store Tbk
Public Multipolar
(6)
24