Earning Slide 31 Oct 2013..
Matahari Department Store
YTD September 2013 Results Update
Earnings call: October 31, 2013
Indonesia’s Most Preferred Department Store
1
Key Highlights
Business Update
Financial Update
Summary
2
Key Highlights
Indonesia’s Most Preferred Department Store
3
Key Highlights – YTD September 2013
•
Consumer demand remains strong despite changes in the macroeconomic
environment
•
Opened 5 new stores in the period, with an additional store opening on 17 October,
giving a total of 6 new stores or 122 stores in total
•
3 additional stores are planned to open by year end, giving a total of 125 stores
•
Total gross sales were up 16.9% YTD
•
Delivered a 9% comp store growth in Q3, bringing the year to date total comp store
growth to 11.7%, beating last years comp store growth for the same period, and our
internal plans
•
YTD net income is up 42.8% YTD
4
Business Update
Indonesia’s Most Preferred Department Store
5
Business Update – YTD September 2013
• Total gross sales Rp9,633 Bn, 16.9% over 2012
• Merchandise gross margin improved 10 bps over 2012
• Despite known cost pressures, expenses came in under plan
• Adjusted EBITDA exceeded last year by 12.0%, beating our internal plan
• Net Income increased 42.8% to Rp 900 Bn
6
Financial Snapshot YTD September 2013
Gross Sales
Adjusted EBITDA
Net Income
IDR Bn
IDR Bn
IDR Bn
1,603
9,633
900
1,431
8,241
630
16.6%
9.3%
11.7%
17.3%
10.8%
7.6%
9M'12
9M'13
SSSG
9M'12
9M'13
Adjusted EBITDA Margin
9M'12
9M'13
Net Income Margin
7
Private label brands continue to deliver strong performance
DP increases mix of business by 270 bps YTD September 2013, as compared to FY2012
% of Gross Sales
YTD Sep’12
FY12
DP
29.1%
YTD Sep ’13
DP
29.0%
CV
70.9%
DP
31.8%
CV
71.0%
CV
68.2%
8
6 new stores opened year-to-date
122 stores in 59 cities across Indonesia
Up to Oct 2013 (1)
MDS Store Overview
No. of Stores
Kalimantan, Bali and East
Indonesia
25 stores (14 cities)
(2 new stores)
Sumatra
19 stores (10 cities)
(1 new store)
As of 31 Dec 2012
116
Added up to Sep 2013
5
Total at Sep 2013
121
Added in Oct 2013
1
Total at Oct 2013
122
Greater Jakarta
35 stores (11 cities)
(2 new stores)
West Java
11 stores (7 cities)
Central Java
16 stores (8 cities)
East Java
16 stores (9 cities)
(1 new store)
9
Store pipeline continues to grow
No
Geographic area
As at 31 Dec 2012
As at 30 Sep 2013
Future Pipeline 2013-2015
# of stores
% mix
# of stores
% mix
# of stores
% mix
1
Jabodetabek (Greater Jakarta)
33
28.5%
34
28.1%
15
20.0%
2
Java (Exc Greater Jakarta)
42
36.2%
43
35.5%
23
30.7%
3
Outside Java
41
35.3%
44
36.4%
37
49.3%
Total
116
100.0%
121
100.0%
75
100.0%
10
Financial Update
Indonesia’s Most Preferred Department Store
11
Q3 delivered a 14.1% sales growth, YTD growth is 16.9%
Strong sales growth
IDR Bn
Q3
YTD September
9,633
10,884
4,473
8,241
Q3'13
9M'12
3,921
9,247
201 1
201 2
Q3'12
9M'13
12
Healthy Q3 SSSG maintains a double digit increase YTD
Strong SSSG
SSSG %
Q3
YTD September
13.6%
Average 12.4%
11.7%
11.1%
2011
2012
10.8%
9.1%
9.0%
Q3'12
Q3'13
9M'12
9M'13
13
Expense pressures continue, driven by minimum wage
and electricity increases
Adjusted Opex(1) as a % of Gross Sales
17.7%
17.3%
17.1%
16.5%
2011
2012
9M'12
9M'13
Note
1. Opex calculated as Adjusted Gross Profit less Adjusted EBITDA
14
YTD EBITDA grew by 12.0% YTD, equivalent to 16.6% sales
Adjusted EBITDA and Margins
IDR Bn
Q3
YTD September
1,819
1,603
1,431
884
16.7%
1,479
16.6%
816
17.3%
19.8%
16.0%
2011
20.8%
2012
Q3'12
Q3'13
9M'12
9M'13
Adjusted EBITDA as a % of Gross Sales
15
YTD net profit increased 42.8% over 2012
Net Profit and Margins
IDR Bn
Q3
Ytd September
771
900
635
466
7.1%
630
9.3%
14.2%
5.0%
473
7.6%
12.1%
2011
2012
Q3'12
Q3'13
9M'12
9M'13
Net Profit as a % of Gross Sales
Note
Effective Q3 2013 the company is using a base tax rate of 20% per regulation no. 238/PMK.03/2008 dated 30 December 2008. (See FS note 2 (q))
16
Debt repayment plan is on track for 2013
Commentary
Total Debt and Interest Expense
Total Debt
Interest expense
Total debt as at 30th September 2013 is Rp1.9 T,
following Rp1.1 T in repayment through 30
September
2,959
325
In line with guidance given, management plans
on additional voluntary prepayments during Q4
211
Effective interest rate declined from 12.5% in
9M‘12 to 11.4% in 9M’13, driven by the
refinancing in 2012
1,888
The interest rate going forwards is JIBOR +
2012
Sep'13
9M'12
9M'13
4.75%
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, revolving facility, less anamortized upfront fee
17
Strong comp performance across geographic regions
Sales Growth and SSSG by region – YTD September 2013
Geographic Area
Stores as at
Sep 2013
Store Mix
% to Total
Sales
(IDR Bn)
Total Sales
% growth YTD
SSSG%
Q3
SSSG%
YTD Sep
Greater Jakarta
34
28.1
2,876.2
15.1
9.2
12.3
Java exclude Greater
Jakarta
43
35.5
3,180.5
19.4
11.5
14.9
Outside Java
44
36.4
3,576.2
16.2.
6.3
8.2
Total
121
100.0
9,633.0
16.9
9.0
11.7
18
Financial Summary
Key Profit & Loss Items
IDR Bn
9M 2012
Q1. 2013
Q2 2013
Q3 2013
9M2013
8,240.9
2,372.4
2,787.2
4,479.4
9,633.0
SSSG
10.8%
13.2%
14.9%
9.0%
11.7%
Growth
17.3%
18.3%
20.4%
14.1%
16.9%
4,251.0
1,257.2
1,483.7
2,367.3
5,108.3
18.4%
21.6%
24.4%
16.9%
20.2%
2,790.1
794.0
959.8
1,519.2
3,272.9
33.9%
33.5%
34.4%
34.0%
34.0%
1,950.0
486.0
617.5
1,106.5
2,210.1
23.7%
20.5%
22.2%
24.7%
22.9%
1430.9
296.7
422.0
884.3
1,603.1
Margin
17.3%
12.5%
15.1%
19.8%
16.6%
Profit before tax
943.6
138.1
274.5
767.5
1,180.1
Margin
11.4%
5.8%
9.9%
17.2%
12.3%
629.9
82.2
182.7
634.6
899.5
Margin
7.6%
3.5%
6.6%
14.2%
9.3%
growth
77.1%
82.8%
62.4%
34.3%
42.8%
Gross Sales
Net Revenue
Growth
Adjusted Gross Profit
Margin
Adjusted EBITDAR
Margin
Adjusted EBITDA
Net Profit
19
Summary
Indonesia’s Most Preferred Department Store
20
Summary
Results in Q3 continue to show strength in sales and earning growth
Management continues to have a positive outlook for the balance of the
year
Accelerated debt repayments remain on track in 2013
Store pipeline continues to be sufficient to drive future growth plans
21
End of Presentation
Indonesia’s Most Preferred Department Store
22
YTD September 2013 Results Update
Earnings call: October 31, 2013
Indonesia’s Most Preferred Department Store
1
Key Highlights
Business Update
Financial Update
Summary
2
Key Highlights
Indonesia’s Most Preferred Department Store
3
Key Highlights – YTD September 2013
•
Consumer demand remains strong despite changes in the macroeconomic
environment
•
Opened 5 new stores in the period, with an additional store opening on 17 October,
giving a total of 6 new stores or 122 stores in total
•
3 additional stores are planned to open by year end, giving a total of 125 stores
•
Total gross sales were up 16.9% YTD
•
Delivered a 9% comp store growth in Q3, bringing the year to date total comp store
growth to 11.7%, beating last years comp store growth for the same period, and our
internal plans
•
YTD net income is up 42.8% YTD
4
Business Update
Indonesia’s Most Preferred Department Store
5
Business Update – YTD September 2013
• Total gross sales Rp9,633 Bn, 16.9% over 2012
• Merchandise gross margin improved 10 bps over 2012
• Despite known cost pressures, expenses came in under plan
• Adjusted EBITDA exceeded last year by 12.0%, beating our internal plan
• Net Income increased 42.8% to Rp 900 Bn
6
Financial Snapshot YTD September 2013
Gross Sales
Adjusted EBITDA
Net Income
IDR Bn
IDR Bn
IDR Bn
1,603
9,633
900
1,431
8,241
630
16.6%
9.3%
11.7%
17.3%
10.8%
7.6%
9M'12
9M'13
SSSG
9M'12
9M'13
Adjusted EBITDA Margin
9M'12
9M'13
Net Income Margin
7
Private label brands continue to deliver strong performance
DP increases mix of business by 270 bps YTD September 2013, as compared to FY2012
% of Gross Sales
YTD Sep’12
FY12
DP
29.1%
YTD Sep ’13
DP
29.0%
CV
70.9%
DP
31.8%
CV
71.0%
CV
68.2%
8
6 new stores opened year-to-date
122 stores in 59 cities across Indonesia
Up to Oct 2013 (1)
MDS Store Overview
No. of Stores
Kalimantan, Bali and East
Indonesia
25 stores (14 cities)
(2 new stores)
Sumatra
19 stores (10 cities)
(1 new store)
As of 31 Dec 2012
116
Added up to Sep 2013
5
Total at Sep 2013
121
Added in Oct 2013
1
Total at Oct 2013
122
Greater Jakarta
35 stores (11 cities)
(2 new stores)
West Java
11 stores (7 cities)
Central Java
16 stores (8 cities)
East Java
16 stores (9 cities)
(1 new store)
9
Store pipeline continues to grow
No
Geographic area
As at 31 Dec 2012
As at 30 Sep 2013
Future Pipeline 2013-2015
# of stores
% mix
# of stores
% mix
# of stores
% mix
1
Jabodetabek (Greater Jakarta)
33
28.5%
34
28.1%
15
20.0%
2
Java (Exc Greater Jakarta)
42
36.2%
43
35.5%
23
30.7%
3
Outside Java
41
35.3%
44
36.4%
37
49.3%
Total
116
100.0%
121
100.0%
75
100.0%
10
Financial Update
Indonesia’s Most Preferred Department Store
11
Q3 delivered a 14.1% sales growth, YTD growth is 16.9%
Strong sales growth
IDR Bn
Q3
YTD September
9,633
10,884
4,473
8,241
Q3'13
9M'12
3,921
9,247
201 1
201 2
Q3'12
9M'13
12
Healthy Q3 SSSG maintains a double digit increase YTD
Strong SSSG
SSSG %
Q3
YTD September
13.6%
Average 12.4%
11.7%
11.1%
2011
2012
10.8%
9.1%
9.0%
Q3'12
Q3'13
9M'12
9M'13
13
Expense pressures continue, driven by minimum wage
and electricity increases
Adjusted Opex(1) as a % of Gross Sales
17.7%
17.3%
17.1%
16.5%
2011
2012
9M'12
9M'13
Note
1. Opex calculated as Adjusted Gross Profit less Adjusted EBITDA
14
YTD EBITDA grew by 12.0% YTD, equivalent to 16.6% sales
Adjusted EBITDA and Margins
IDR Bn
Q3
YTD September
1,819
1,603
1,431
884
16.7%
1,479
16.6%
816
17.3%
19.8%
16.0%
2011
20.8%
2012
Q3'12
Q3'13
9M'12
9M'13
Adjusted EBITDA as a % of Gross Sales
15
YTD net profit increased 42.8% over 2012
Net Profit and Margins
IDR Bn
Q3
Ytd September
771
900
635
466
7.1%
630
9.3%
14.2%
5.0%
473
7.6%
12.1%
2011
2012
Q3'12
Q3'13
9M'12
9M'13
Net Profit as a % of Gross Sales
Note
Effective Q3 2013 the company is using a base tax rate of 20% per regulation no. 238/PMK.03/2008 dated 30 December 2008. (See FS note 2 (q))
16
Debt repayment plan is on track for 2013
Commentary
Total Debt and Interest Expense
Total Debt
Interest expense
Total debt as at 30th September 2013 is Rp1.9 T,
following Rp1.1 T in repayment through 30
September
2,959
325
In line with guidance given, management plans
on additional voluntary prepayments during Q4
211
Effective interest rate declined from 12.5% in
9M‘12 to 11.4% in 9M’13, driven by the
refinancing in 2012
1,888
The interest rate going forwards is JIBOR +
2012
Sep'13
9M'12
9M'13
4.75%
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, revolving facility, less anamortized upfront fee
17
Strong comp performance across geographic regions
Sales Growth and SSSG by region – YTD September 2013
Geographic Area
Stores as at
Sep 2013
Store Mix
% to Total
Sales
(IDR Bn)
Total Sales
% growth YTD
SSSG%
Q3
SSSG%
YTD Sep
Greater Jakarta
34
28.1
2,876.2
15.1
9.2
12.3
Java exclude Greater
Jakarta
43
35.5
3,180.5
19.4
11.5
14.9
Outside Java
44
36.4
3,576.2
16.2.
6.3
8.2
Total
121
100.0
9,633.0
16.9
9.0
11.7
18
Financial Summary
Key Profit & Loss Items
IDR Bn
9M 2012
Q1. 2013
Q2 2013
Q3 2013
9M2013
8,240.9
2,372.4
2,787.2
4,479.4
9,633.0
SSSG
10.8%
13.2%
14.9%
9.0%
11.7%
Growth
17.3%
18.3%
20.4%
14.1%
16.9%
4,251.0
1,257.2
1,483.7
2,367.3
5,108.3
18.4%
21.6%
24.4%
16.9%
20.2%
2,790.1
794.0
959.8
1,519.2
3,272.9
33.9%
33.5%
34.4%
34.0%
34.0%
1,950.0
486.0
617.5
1,106.5
2,210.1
23.7%
20.5%
22.2%
24.7%
22.9%
1430.9
296.7
422.0
884.3
1,603.1
Margin
17.3%
12.5%
15.1%
19.8%
16.6%
Profit before tax
943.6
138.1
274.5
767.5
1,180.1
Margin
11.4%
5.8%
9.9%
17.2%
12.3%
629.9
82.2
182.7
634.6
899.5
Margin
7.6%
3.5%
6.6%
14.2%
9.3%
growth
77.1%
82.8%
62.4%
34.3%
42.8%
Gross Sales
Net Revenue
Growth
Adjusted Gross Profit
Margin
Adjusted EBITDAR
Margin
Adjusted EBITDA
Net Profit
19
Summary
Indonesia’s Most Preferred Department Store
20
Summary
Results in Q3 continue to show strength in sales and earning growth
Management continues to have a positive outlook for the balance of the
year
Accelerated debt repayments remain on track in 2013
Store pipeline continues to be sufficient to drive future growth plans
21
End of Presentation
Indonesia’s Most Preferred Department Store
22