Earnings Slides Q2 2015
PT Matahari Department Store Tbk.
Q2 2015/ 1H 2015 Results Update
Earnings call: July 30, 2015
Indonesia’s Most Preferred Department Store
1
Key Highlights Q2 2015 and 1H 2015
Financial Update
Summary
2
Key Highlights Q2 2015 / 1H 2015
3
Key Highlights Q2 2015
• Total gross sales increased by 21.2% over LY to Rp3,994 bn
• Delivered a 17.8% comp store sales growth
• Merchandise gross margin increased to 36.2% of gross sales, up 50 bps over LY
• EBITDA increased by 31.8% over LY to Rp683 bn, at 17.1% of gross sales
• Reported net income increased by 94.0% from Rp239 bn in Q2 2014, compared to
Rp463 bn in Q2 2015
• Comparable net income increased by 55.1% from Rp299 bn in Q2 2014*,
compared to Rp463 bn in Q2 2015
*Net income before non-recurring expense related to prior years of Rp59.9bn
4
Key Highlights 1H 2015
• Total gross sales increased by 15.1% over LY to Rp6,875 bn
• Delivered a 12.2% comp store sales growth
• Merchandise gross margin increased to 35.6% of gross sales, up 50 bps over LY
• EBITDA increased by 18.3% over LY to Rp1,009 bn, at 14.7% of gross sales
• Reported net income increased by 79.1% from Rp362 bn in 1H 2014, compared to
Rp648 bn in 1H 2015
• Comparable net income increased by 44.0% from Rp450 bn in 1H 2014*,
compared to Rp648 bn in 1H 2015
*Net income before non-recurring expense related to prior years of Rp88 bn
5
Financial Snapshot Q2 2015
Reported Net Income
EBITDA
Gross Sales
IDR Bn
IDR Bn
IDR Bn
5,500
500
5,000
400
463
239
300
4,500
200
3,994
3,500
7.2%4.6%
100
4,000
-
3,295
Q2 '14
3,000
Q2 '15
Comparable Net Income
2,500
801
2,000
601
683
518
1,500
600
401
1,000
15.7%
17.1%
201
500
-
11.6%
6.4%
1
Q2 '14
Q2 '15
Q2 '14
Q2 '15
463
400
299
200
9.1%
11.6%
Q2 '14
Q2 '15
Net Income Margin
6
MDS’s exclusive brands continue to deliver strong performance
DP accounted for 36.7% of gross sales in Q2 2015, as compared to 35.4% in Q2 2014
% of Gross Sales
Q2 2014
Q2 2015
DP, 35.4%
DP, 36.7%
FY 2014
DP, 34.0%
CV, 63.3%
CV, 64.6%
1H 2015
1H 2014
CV, 66.0%
DP, 34.9%
DP, 36.0%
CV, 65.1%
CV, 64.0%
7
7 new stores opened in Q2 2015; 8 opened in 1H 2015
MDS Store Overview
No. of Stores
Kalimantan, Bali and East
Indonesia
34 stores (20 cities)
(4 new stores, 4 new cities)
Sumatra
22 stores (11 cities)
As of 31 Dec 2014
131
Additions
8
Closures
0
Total as of 30 June 2015
139
Greater Jakarta
38 stores (11 cities)
(2 new stores)
West Java
11 stores (7 cities)
(1 new store)
Central Java
18 stores (8 cities)
(1 new store)
East Java
16 stores (9 cities)
8
Opened 7 new stores in Q2 2015; Forecasting 12-14 new stores in 2015
o Q2 update:
Opened 7 new stores (2 Greater Jakarta, 2 Java and 3 outside Java)
o Balance of the year:
Forecasting 1-2 additional stores in Q3 and 3-5 in Q4
No
Geographic area
As at 31 Dec 2014
As at 30 Jun 2015
Balance in 2015
Future Pipeline 2016 onwards
# of stores
% mix
# of stores
% mix
# of stores
# of stores
% mix
1
Jabodetabek (Greater Jakarta)
36
27.5%
38
27.3%
1-2
14
21.2%
2
Java (Exc Greater Jakarta)
43
32.8%
45
32.4%
1
18
27.3%
3
Outside Java
52
39.7%
56
40.3%
2-3
34
51.5%
131
100.0%
139
100.0%
4-6
66
100.0%
Total
9
Financial Update
10
10
Overall Sales growth strengthened in Q2 2015
IDR Bn
1H
Q2
6,000
14,421
4,000
12,735
8,000
2,000
6,875
7,000
5,972
0,000
6,000
5,500
5,000
8,000
5,000
4,500
3,994
4,000
6,000
3,500
4,000
3,295
3,000
3,000
2,500
4,000
2,000
2,000
1,500
2,000
1,000
1,000
500
-
-
FY'13
FY'14
Q2 '14
Q2 '15
-
1H'14
1H'15
11
Shift in Lebaran helped drive double digit SSSG in Q2 2015
SSSG %
1H
Q2
17.8%
15.4%
Q2'14
Q2'15
12.6%
12.2%
1H'14
1H'15
12
Merchandise margins improved 50 bps over LY
Gross profit and margins
IDR Bn
1H
Q2
001
3,001
5,029
001
2,450
2,501
4,348
2,096
001
2,001
2,001
001
1,501
001
1,444
1,501
1,176
35.6%
1,001
1,001
35.1%
36.2%
34.9%
001
501
35.7%
501
34.1%
1
1
Q2'14
1
FY13
Q2'15
1H'14
1H'15
FY14
Gross profit as a % of Gross Sales
13
Operating leverage improved on stronger sales
Comp store
1H
Q2
Opex(1) as a % of Gross Sales
Comp store
14.0%
14.0%
FY13
FY14
Total Company
15.6%
Q2 '14
16.4%
16.1%
1H '14
1H '15
20.8%
21.0%
1H '14
1H '15
14.4%
Q2 '15
Total Company
17.7%
18.2%
FY13
FY14
20.0%
19.1%
Q2 '14
Q2 '15
Note
1. Opex calculated as Adjusted Gross Profit less Adjusted EBITDA
14
EBITDA increased by 31.8% in Q2 2015
EBITDA and Margins
IDR Bn
3,001
1H
Q2
2,411
2,501
2,096
2,001
1,201
1,009
1,001
1,501
853
801
16.7%
1,001
16.5%
801
601
683
601
518
14.7%
14.3%
201
1
401
401
501
FY'13
Notes
EBITDA adjusted for severance pay
FY'14
1
17.1%
15.7%
Q2 '14
201
Q2 '15
1
1H'14
1H'15
EBITDA as a % of Gross Sales
15
Q2 2015 comparable net income increased by 55.1% over 2014
Reported Net Income (IDR Bn)
Reported Net Income (IDR Bn)
700
463
500
400
239
11.6%
200
100
362
300
9.4%
200
7.2%
100
6.1%
-
Q2 '14
Comparable Net Income (IDR Bn)
600
500
400
300
648
Q2 '15
1H'14
Comparable Net Income (IDR Bn)
700
500
450
400
350
300
250
200
150
100
50
-
Net Income as a % of Gross Sales
1H'15
463
600
500
299
648
450
400
11.6%
9.4%
300
200
9.1%
100
7.5%
Q2 '14
Q2 '15
1H'14
1H'15
*Net income before non-recurring expense related to prior years of Rp59.9bn (Q2’ 14) and Rp88 bn (1H’ 14)
16
Dividend was paid at the end of Q2
Debt balance was Rp700 bn at the end of Q2 2015
Cash balance at the end of Q2 2015 was Rp694 bn, after dividend payments
Total Gross Debt (in IDR Bn)
Total Gross Debt and Cash (in IDR Bn)
1,669
708
700
700
700
420
694
FY '13
FY '14
Q1 '15
Q2 '15
Debt
Cash
Dividends paid
Notes
1. Total debt comprises of the bank loan
2. Rp708 bn represents part payment of the total dividend amount of Rp851 bn
17
Sales growth and SSSG performance across geographic regions
No. Of stores
as at
June 2015
Store
Mix
% to
Total
Q2 2015
Sales
(IDR Bn)
Q2 2015
Sales
% Growth
1H 2015
Sales
(IDR Bn)
1H 2015
Sales
% Growth
Q2 2015
SSSG%
1H 2015
SSSG%
Greater
Jakarta
38
27.3%
1,140
19.8%
1,996
13.8%
17.8%
12.0%
Java exclude
Greater
Jakarta
45
32.4%
1,391
25.0%
2,315
18.1%
25.6%
19.1%
Outside Java
56
40.3%
1,463
19.0%
2,564
13.6%
10.8%
6.5%
139
100.0%
3,994
21.2%
6,875
15.1%
17.8%
12.2%
Geographic
Area
Total
18
Financial Summary
Key Profit & Loss Items
IDR Bn
Q2 2014
Q1 2015
Q2 2015
1H 2014
1H 2015
3,294.5
2,880.6
3,993.9
5,971.8
6,874.5
SSSG
15.4%
5.4%
17.8%
12.6%
12.2%
Growth
18.2%
7.6%
21.2%
15.7%
15.1%
1,849.2
1,613.2
2,307.7
3,328.9
3.920,9
Growth
24.6%
9.0%
24.8%
21.5%
17.8%
Gross Profit
1,176.1
1,005.6
1,444.4
2,095.5
2.449.9
35.7%
34.9%
36.2%
35.1%
35.6%
748.9
566.7
948.3
1,299.4
1,515.0
22.7%
19.7%
23.7%
21.8%
22.0%
518.2
326.1
682.8
853.0
1,008.9
15.7%
11.3%
17.1%
14.3%
14.7%
328.6
240.6
586.6
510.1
827.1
10.0%
8.4%
14.7%
8.5%
12.0%
238.6
185.0
462.8
361.7
647.8
Margin
7.2%
6.4%
11.6%
6.1%
9.4%
growth
30.6%
50.3%
94.0%
36.5%
79.1%
Gross Sales
Net Revenue
Margin
EBITDAR
Margin
EBITDA
Margin
Income before tax
Margin
Reported net Income
19
Summary
20
Summary
Despite a weak economic environment, our target market continues to
show some resilience and we delivered strong results for the 1st Half
In the 1st half, total sales were up by 15.1%, same store sales were up by
12.2%, improvements in gross margin and operational leverage all
contributed to driving significant increases in earnings
The company’s store openings in 2015, along with the locations already
identified for 2016 and beyond, indicate it is well positioned to continue to
grow market share going forward
21
End of Presentation
22
Q2 2015/ 1H 2015 Results Update
Earnings call: July 30, 2015
Indonesia’s Most Preferred Department Store
1
Key Highlights Q2 2015 and 1H 2015
Financial Update
Summary
2
Key Highlights Q2 2015 / 1H 2015
3
Key Highlights Q2 2015
• Total gross sales increased by 21.2% over LY to Rp3,994 bn
• Delivered a 17.8% comp store sales growth
• Merchandise gross margin increased to 36.2% of gross sales, up 50 bps over LY
• EBITDA increased by 31.8% over LY to Rp683 bn, at 17.1% of gross sales
• Reported net income increased by 94.0% from Rp239 bn in Q2 2014, compared to
Rp463 bn in Q2 2015
• Comparable net income increased by 55.1% from Rp299 bn in Q2 2014*,
compared to Rp463 bn in Q2 2015
*Net income before non-recurring expense related to prior years of Rp59.9bn
4
Key Highlights 1H 2015
• Total gross sales increased by 15.1% over LY to Rp6,875 bn
• Delivered a 12.2% comp store sales growth
• Merchandise gross margin increased to 35.6% of gross sales, up 50 bps over LY
• EBITDA increased by 18.3% over LY to Rp1,009 bn, at 14.7% of gross sales
• Reported net income increased by 79.1% from Rp362 bn in 1H 2014, compared to
Rp648 bn in 1H 2015
• Comparable net income increased by 44.0% from Rp450 bn in 1H 2014*,
compared to Rp648 bn in 1H 2015
*Net income before non-recurring expense related to prior years of Rp88 bn
5
Financial Snapshot Q2 2015
Reported Net Income
EBITDA
Gross Sales
IDR Bn
IDR Bn
IDR Bn
5,500
500
5,000
400
463
239
300
4,500
200
3,994
3,500
7.2%4.6%
100
4,000
-
3,295
Q2 '14
3,000
Q2 '15
Comparable Net Income
2,500
801
2,000
601
683
518
1,500
600
401
1,000
15.7%
17.1%
201
500
-
11.6%
6.4%
1
Q2 '14
Q2 '15
Q2 '14
Q2 '15
463
400
299
200
9.1%
11.6%
Q2 '14
Q2 '15
Net Income Margin
6
MDS’s exclusive brands continue to deliver strong performance
DP accounted for 36.7% of gross sales in Q2 2015, as compared to 35.4% in Q2 2014
% of Gross Sales
Q2 2014
Q2 2015
DP, 35.4%
DP, 36.7%
FY 2014
DP, 34.0%
CV, 63.3%
CV, 64.6%
1H 2015
1H 2014
CV, 66.0%
DP, 34.9%
DP, 36.0%
CV, 65.1%
CV, 64.0%
7
7 new stores opened in Q2 2015; 8 opened in 1H 2015
MDS Store Overview
No. of Stores
Kalimantan, Bali and East
Indonesia
34 stores (20 cities)
(4 new stores, 4 new cities)
Sumatra
22 stores (11 cities)
As of 31 Dec 2014
131
Additions
8
Closures
0
Total as of 30 June 2015
139
Greater Jakarta
38 stores (11 cities)
(2 new stores)
West Java
11 stores (7 cities)
(1 new store)
Central Java
18 stores (8 cities)
(1 new store)
East Java
16 stores (9 cities)
8
Opened 7 new stores in Q2 2015; Forecasting 12-14 new stores in 2015
o Q2 update:
Opened 7 new stores (2 Greater Jakarta, 2 Java and 3 outside Java)
o Balance of the year:
Forecasting 1-2 additional stores in Q3 and 3-5 in Q4
No
Geographic area
As at 31 Dec 2014
As at 30 Jun 2015
Balance in 2015
Future Pipeline 2016 onwards
# of stores
% mix
# of stores
% mix
# of stores
# of stores
% mix
1
Jabodetabek (Greater Jakarta)
36
27.5%
38
27.3%
1-2
14
21.2%
2
Java (Exc Greater Jakarta)
43
32.8%
45
32.4%
1
18
27.3%
3
Outside Java
52
39.7%
56
40.3%
2-3
34
51.5%
131
100.0%
139
100.0%
4-6
66
100.0%
Total
9
Financial Update
10
10
Overall Sales growth strengthened in Q2 2015
IDR Bn
1H
Q2
6,000
14,421
4,000
12,735
8,000
2,000
6,875
7,000
5,972
0,000
6,000
5,500
5,000
8,000
5,000
4,500
3,994
4,000
6,000
3,500
4,000
3,295
3,000
3,000
2,500
4,000
2,000
2,000
1,500
2,000
1,000
1,000
500
-
-
FY'13
FY'14
Q2 '14
Q2 '15
-
1H'14
1H'15
11
Shift in Lebaran helped drive double digit SSSG in Q2 2015
SSSG %
1H
Q2
17.8%
15.4%
Q2'14
Q2'15
12.6%
12.2%
1H'14
1H'15
12
Merchandise margins improved 50 bps over LY
Gross profit and margins
IDR Bn
1H
Q2
001
3,001
5,029
001
2,450
2,501
4,348
2,096
001
2,001
2,001
001
1,501
001
1,444
1,501
1,176
35.6%
1,001
1,001
35.1%
36.2%
34.9%
001
501
35.7%
501
34.1%
1
1
Q2'14
1
FY13
Q2'15
1H'14
1H'15
FY14
Gross profit as a % of Gross Sales
13
Operating leverage improved on stronger sales
Comp store
1H
Q2
Opex(1) as a % of Gross Sales
Comp store
14.0%
14.0%
FY13
FY14
Total Company
15.6%
Q2 '14
16.4%
16.1%
1H '14
1H '15
20.8%
21.0%
1H '14
1H '15
14.4%
Q2 '15
Total Company
17.7%
18.2%
FY13
FY14
20.0%
19.1%
Q2 '14
Q2 '15
Note
1. Opex calculated as Adjusted Gross Profit less Adjusted EBITDA
14
EBITDA increased by 31.8% in Q2 2015
EBITDA and Margins
IDR Bn
3,001
1H
Q2
2,411
2,501
2,096
2,001
1,201
1,009
1,001
1,501
853
801
16.7%
1,001
16.5%
801
601
683
601
518
14.7%
14.3%
201
1
401
401
501
FY'13
Notes
EBITDA adjusted for severance pay
FY'14
1
17.1%
15.7%
Q2 '14
201
Q2 '15
1
1H'14
1H'15
EBITDA as a % of Gross Sales
15
Q2 2015 comparable net income increased by 55.1% over 2014
Reported Net Income (IDR Bn)
Reported Net Income (IDR Bn)
700
463
500
400
239
11.6%
200
100
362
300
9.4%
200
7.2%
100
6.1%
-
Q2 '14
Comparable Net Income (IDR Bn)
600
500
400
300
648
Q2 '15
1H'14
Comparable Net Income (IDR Bn)
700
500
450
400
350
300
250
200
150
100
50
-
Net Income as a % of Gross Sales
1H'15
463
600
500
299
648
450
400
11.6%
9.4%
300
200
9.1%
100
7.5%
Q2 '14
Q2 '15
1H'14
1H'15
*Net income before non-recurring expense related to prior years of Rp59.9bn (Q2’ 14) and Rp88 bn (1H’ 14)
16
Dividend was paid at the end of Q2
Debt balance was Rp700 bn at the end of Q2 2015
Cash balance at the end of Q2 2015 was Rp694 bn, after dividend payments
Total Gross Debt (in IDR Bn)
Total Gross Debt and Cash (in IDR Bn)
1,669
708
700
700
700
420
694
FY '13
FY '14
Q1 '15
Q2 '15
Debt
Cash
Dividends paid
Notes
1. Total debt comprises of the bank loan
2. Rp708 bn represents part payment of the total dividend amount of Rp851 bn
17
Sales growth and SSSG performance across geographic regions
No. Of stores
as at
June 2015
Store
Mix
% to
Total
Q2 2015
Sales
(IDR Bn)
Q2 2015
Sales
% Growth
1H 2015
Sales
(IDR Bn)
1H 2015
Sales
% Growth
Q2 2015
SSSG%
1H 2015
SSSG%
Greater
Jakarta
38
27.3%
1,140
19.8%
1,996
13.8%
17.8%
12.0%
Java exclude
Greater
Jakarta
45
32.4%
1,391
25.0%
2,315
18.1%
25.6%
19.1%
Outside Java
56
40.3%
1,463
19.0%
2,564
13.6%
10.8%
6.5%
139
100.0%
3,994
21.2%
6,875
15.1%
17.8%
12.2%
Geographic
Area
Total
18
Financial Summary
Key Profit & Loss Items
IDR Bn
Q2 2014
Q1 2015
Q2 2015
1H 2014
1H 2015
3,294.5
2,880.6
3,993.9
5,971.8
6,874.5
SSSG
15.4%
5.4%
17.8%
12.6%
12.2%
Growth
18.2%
7.6%
21.2%
15.7%
15.1%
1,849.2
1,613.2
2,307.7
3,328.9
3.920,9
Growth
24.6%
9.0%
24.8%
21.5%
17.8%
Gross Profit
1,176.1
1,005.6
1,444.4
2,095.5
2.449.9
35.7%
34.9%
36.2%
35.1%
35.6%
748.9
566.7
948.3
1,299.4
1,515.0
22.7%
19.7%
23.7%
21.8%
22.0%
518.2
326.1
682.8
853.0
1,008.9
15.7%
11.3%
17.1%
14.3%
14.7%
328.6
240.6
586.6
510.1
827.1
10.0%
8.4%
14.7%
8.5%
12.0%
238.6
185.0
462.8
361.7
647.8
Margin
7.2%
6.4%
11.6%
6.1%
9.4%
growth
30.6%
50.3%
94.0%
36.5%
79.1%
Gross Sales
Net Revenue
Margin
EBITDAR
Margin
EBITDA
Margin
Income before tax
Margin
Reported net Income
19
Summary
20
Summary
Despite a weak economic environment, our target market continues to
show some resilience and we delivered strong results for the 1st Half
In the 1st half, total sales were up by 15.1%, same store sales were up by
12.2%, improvements in gross margin and operational leverage all
contributed to driving significant increases in earnings
The company’s store openings in 2015, along with the locations already
identified for 2016 and beyond, indicate it is well positioned to continue to
grow market share going forward
21
End of Presentation
22