Morgan Stanley Fifth Annual Hong Kong Investor Summit

Transcription

1 PT Mitra Pinasthika Mustika Tbk Morgan Stanley Fifth Annual Hong Kong Investor Summit May

2 MPM CREDO Mission To provide high quality and friendly transportation products and services that make our customers happy Vision Become a friendly household name through resourceful and passionate people led by respectable and humble leaders MPM Core Values 1. Passion for Excellence 2. Customer Focus 3. Continuous Improvement 4. Respect & Humble 5. Gratefulness 6. Integrity 7. Adaptability 8. Teamwork

3 KEY MESSAGES About MPM Leading End-to-End Consumer Automotive Company in Indonesia Company Updates Continued scale building and growth across all business segments Summary & Business Segments Performance Stable 2W business despite natural disasters, Strong 4W business growth FY14 Outlook ~20% revenue growth, ~10% NPATMI growth year-on-year 3

4 26 YEAR SUCCESSFUL LEGACY AND EXPERTISE IN AUTOMOTIVE... Establishment Pre Founded by William Soeryadjaya as 2W distribution business FKT was established MPMMotor 1st retail outlet was opened Acquired initial shareholding in SAF, originally established in 1982 Mulia was established; distribution business was transferred from MPM to Mulia Present Jan 12 May 12 Dec 12 May 13 Aug 13 Apr 14 Acquired MPMRent and MPMFinance MPMInsurance was established JACCS acquired significant minority shares in SAF + options Listed in Indonesian Stock Exchange, Ticker: MPMX MPMAuto was established, signed Dealer and Service Agreement with Nissan Motor Indonesia Signed merger deed of MPMFinance and SAF 4

5 ...CREATING AN END-TO-END NATIONWIDE ECOSYSTEM SERVING VAST CONSUMERS IN AUTOMOTIVE SECTOR... DISTRIBUTION & RETAIL AUTO CONSUMER PARTS AUTO SERVICES FINANCIAL SERVICES 2W Honda distribution in E. Java + E. Nusa Tenggara with 288 dealer relationships 2W engine lubricant brand principal with 13,000+ outlets nationwide N/A Independent 2W financing business with 44 outlets nationwide 2W Honda retail dealers with 40 outlets nationwide Independent 4W financing business with 162 outlets nationwide 4W Nissan & Datsun dealership, opened 1st outlet in Mar 14 4W engine lubricants (currently in bulk) Independent 4W rental/lease company with 34 outlets nationwide Non-life insurance including 2W, 4W, cargo, & property with 10 offices nationwide 2,4M+ active 2W customers, ~500 new 4W customers since inception Federal Oil Centers, 10,000+ 3rd party retailers, 10M+ 2W customers 1,400+ corporate clients 220K+ finance & lease customers, 33K+ insurance clients Data as of 5

6 ...WITH MARKET LEADING POSITION DRIVING GROWTH SCALE POSITION + GROWTH (1) DISTRIBUTION & RETAIL #1 E. Java, 67% market share #5 nationwide by volume 1 of 2 nationwide dealer 14% 2W volume growth 14% 2W retail volume growth 500 unit sales since inception AUTO CONSUMER PARTS #1 for Honda, 23% market share 10% lube volume growth AUTO SERVICES #2 largest nationwide by fleet size 44% fleet size growth FINANCIAL SERVICES Top 5 non-bank finco Scalable non-life insurance 19% booking growth YoY 1,380% premium growth vs. 12 (1) 3-year growth ( CAGR) unless otherwise noted 6

7 BALANCED SEGMENT PROFIT CONTRIBUTION IN THE ECOSYSTEM 7% 7% 8% 7% Revenues FY13 IDR 13.9T +29% YoY 10% Revenues IDR 3.6T +13% YoY 11% 76% 74% 20% 15% NPATMI FY13 IDR 526B 43% +41% YoY 9% NPATMI IDR 152B 43% +32% YoY 10% 28% 32% Distribution & Retail Auto Consumer Parts Auto Services Financial Services 7

8 STRONG GOVERNANCE AND MANAGEMENT IN PLACE WITH ACTIVE MAJOR SHAREHOLDERS BOARD OF COMMISSIONERS BoC brings strong mix of operational, strategy, M&A, and governance expertise BOARD OF DIRECTORS BoD members bring over 79 years of combined professional experience Shareholder Composition 47.2% 15.3% 37.5% PT Saratoga Investama Sedaya Tbk and Affiliates Morninglight Investments S.a.r.l Public & Others 8

9 KEY MESSAGES About MPM Leading End-to-End Consumer Automotive Company in Indonesia Company Updates Continued scale building and growth across all business segments Summary & Business Segments Performance Stable 2W business despite natural disasters, Strong 4W business growth FY14 Outlook ~20% revenue growth, ~10% NPATMI growth year-on-year 9

10 4Q13 KEY EVENTS: BUILDING FOUNDATION FOR FUTURE GROWTH Mar Mar Mar 14 1st MPM Dealership for Nissan opened in Enggano, JKT MPMRent driving school opened in Bogor, W. Java MPMFinance and SAF merger announced 2 Feb Nov 13 Oct 13 Mar 14 3 FKT received Top Brand Award for 2W lube category MPMX added into MSCI Small Cap Indices HR talent development and GCG continuous improvements, CPM finalized Mar 14 More details to be discussed in subsequent slides 10

11 1 MPMAUTO: THE FIRST OF ITS KIND BUSINESS MODEL IN BUILDING NISSAN-DATSUN DEALERSHIPS Nissan Tj. Priok Opened Mar 14 Alam Sutera Coming soon Sep 14 Local Partnership Scheme Increase brand presence Reduce CAPEX 100% MPMAuto management control Fast pace expansion Start of Sales (SOS) Finco Partnership Scheme Max 4 other fincos Pre-approved customer names 1-day loan disbursement post document completion Product Differentiation Body Shop Spare part whosaler center Nissan U-Cars MPMA customer loyalty card Virtual community, website & social media Finance Company Alliance Population FINANCE COMPANY NETWORK CUSTOMER BCA Finance & KKB 1,062 3,000,000 ADIRA Finance 669 1,600,000 BFI Finance ,000 OTO Multiartha Finance ,000 MPM Finance 62 30,000 5 mio 10 mio 20 mio 70 mio 11

12 2 MPMF AND SAF MERGER WILL CREATE LEADING INDEPENDENT AUTOMOTIVE FINANCING COMPANY IN INDONESIA 3.5% 3, % 47.5% 28.2% FY13 3.6% 3, % 48.3% 28.3% 4.2% 4, % 48.6% 29.7% FY14E % Loan Portfolio, IDR B +28% YoY +44% YoY 1.0% 9.0% 1, % FY13 1.0% 9.0% 1, % 1.0% 9.0% 1, % FY14E 5.0% 0.3% 4, % 34.2% 25.3% 20.3% FY13 5.1% 0.3% + +33% YoY 4, % 34.5% 25.6% 20.2% 5.7% 0.3% 6, % 33.9% 27.3% 20.7% FY14E New car financing Used car financing Used 2W financing Finance lease New 2W financing Used 2W financing Electronic goods New car financing Used car financing New 2W financing Used 2W financing Finance lease Electronic goods Focus on new and used car purchases as well as used car and motorcycle refinancing Strong relationship with funding providers as well as numerous retail car dealers and showrooms Focus on new Honda motorcycle and used motorcycle financing Strong relationship with dealers especially in East Java Strengthen foothold in financing business Become more efficient and competitive through a stronger capital base and network expansion in Indonesia Lead to positive business synergy with other MPMX business entities 12

13 2 MPMF AND SAF MERGER PROFORMA (ILLUSTRATION) FOR ILLUSTRATION ONLY Merger Impact to MPM IDR Billion Assumptions [+] New Capital Injection 27 IDR 510 B at 20% yield [+] CoF Savings bps savings on bank borrowings [+] Cost Synergies 1 50 bps savings on combined opex [-] Dilution Impact (39) MPM ownership from 84.86% to 60% Full Benefit FY14E 1 Year 1 impact ROE before Full Benefit 12% ROE with Full Benefit 12% Leverage pre-capital injection 3.6x Leverage post-capital injection 2.5x Based on post tax (25%), annualized FY14E figures 13

14 3 MPM HAS FINALIZED CORPORATE POLICY MANUAL (CPM) IN MARCH 2014 Corporate Document Hierarchy Content Set According to Organization Building Blocks A. Company Core Vision, Mission, Strategy Governance 1. Strategy & organization management 2. Portfolio & investment management 3. Supervision & control 4. Human resources management 5. Corporate identity management Organization Business Process B. Supporting Business Units HR & Capabilities 1. Information Technology 2. Finance & accounting 3. Sourcing 4. General Administration 5. Legal Next: C. Operating Companies Derivatives from CPM Holding level 14

15 MPM HAS USED UP 77% OF THE PROCEEDS RAISED IN THE IPO In IDR B (%) denotes percentage of net IPO proceeds. 225 MPMRent purchase new cars 17% 300 FKT 17% stake acquisition 220 MPMRent acquisition of SAK (1,280 cars) 175 MPMAuto build dealers 16% 970,000,000 shares (21.7% of enlarged TSO) were offered to public market at IDR1,500 per share 13% The 2013 P/E valuation is about 10.7X, with MPMX price at IDR 1,300 8% 3% 23% 20% 275 FKT factory 1,355 Net IPO proceeds 115 Loan repayment Has been executed To be executed 45 MPMRent organic & inorganic opportunities 15

16 KEY MESSAGES About MPM Leading End-to-End Consumer Automotive Company in Indonesia Company Updates Continued scale building and growth across all business segments Summary & Business Segments Performance Stable 2W business despite natural disasters, Strong 4W business growth FY14 Outlook ~20% revenue growth, ~10% NPATMI growth year-on-year 16

17 & FY13 CONSOLIDATED REVENUE RESULTS IDR B 3, % (11) 3,642 % Growth from LY +9% +7% +45% +26% 2, (119) 13,879 10, % FY12 Stable revenue growth in all business units FY13 % Growth from LY +27% +12% +67% +25% Distribution & Retail Auto Consumer Parts Auto Services Financial Services Elimination 17

18 & FY13 CONSOLIDATED NET PROFIT AFTER TAX RESULTS IDR B 17 8 (5) % % Growth from LY +5% +7% +20% +20% -29% -57% % (9) (5) (56) 526 FY12 Distribution & Retail Positive growth in all business units while maintaining strong profitability % Growth from LY +27% +9% +159% +54% Auto Consumer Parts Auto Services Financial Services +4% +16% Head Office Minority Interest Elimination FY13 18

19 2W DISTRIBUTION & RETAIL: OUTPERFORM MARKET IN FY13, MANAGING IMPACT JAN-FEB 14 Sales Volume (000 units, YoY%) Mulia MSO 25 0% -3% % +7% % % 126 FY13 / Highlights FY13: 23% sales volume growth vs. 10% industry : volume impacted by flooding in Jan 14 and Kelud volcano eruption in Feb 14, by Mar 14 volume back to normal Revenue (IDR B, YoY%) +7% 2,695 2,897 NPAT (IDR B, YoY%) +5% % +10% 12,807 11,602 9, % +8% FY14 Initiatives Manage more efficient distribution by adding 1 warehouse to cater Southern area of E. Java Plan inventory level especially for Festive season preparation in July 14 Increase retail sales volume by adding sales points and review financing sales portion Focus on operational improvement and CRM activities 19

20 4W DEALERSHIP: READY TO LAUNCH Sales Volume (Car Units, YoY%) 4,203 16, Revenue (IDR B, YoY%) FY13 / Highlights Signed agreement with Nissan Motor Distributor Indonesia in Aug 13 MPMX 1st dealer was opened in Enggano, North Jakarta... For Nissan & upcoming Datsun brand Sold 365 units since its inception in Nov 13 Nissan launched New Teana in Mar NPAT (IDR B, YoY%) - (0) 1, (0) FY12 FY FY14E FY14 Initiatives Open at least 7 dealerships nationwide focusing on 3S : showroom, services, and spare parts Tap into e-community channels + loyalty programs Partners with major financing companies & local partners Upcoming new lineups launching by Nissan: (14) 20

21 CONSUMER PARTS: CONTINUING BRAND BUILDING & DISTRIBUTION ACTIVITIES IN FKT (1) TO INCREASE GROWTH Sales Volume (KL, YoY%) +0% 16,670 16,678 Revenue (IDR B, YoY%) 387 NPAT (IDR B, YoY%) 62 +7% % 67 +8% 56,393 60, % 1, % 1,444 +8% , % 1, % 247 FY13 / Highlights Revenue and NPAT steady growth at +7% Slower volume growth due to lower repacking volume (FY13) and FO price increase (Feb 14)... Competitors allowing last bite price Introduce new Y-MATIC product in 4Q13 to tap new market segment... Branding Spesialis Dingin Ongoing ATL and BTL marketing and promotion activities to strenghten brand equity FY14 Initiatives Focus on higher growth MATIC segment... Product/SKU refinement and new product formulation introduction Implement key marketing and branding initiatives: Festive Season, World Cup, Racing events Strengthen sales and distribution organization Enter 4W lubricant business Continue feasibility study on blending plant expansion + operational efficiencies (1) FKT = PT Federal Karyatama through its lubricant brand 21

22 AUTO SERVICES: STRONG PIPELINE, FOCUS ON OPERATIONAL IMPROVEMENTS Fleet Size (Units, YoY%) 10, % 14,573 Revenue (IDR B, YoY%) 7, % 13, % 18,514 FY13 / Highlights FY13 fleet growth supported by 2 acquisitions, organic growth at 25% YoY Launched drivers training school in Mar Key differentiator for corporate customers Average length of contract: 2.5 years Key Customers: % % % 1,256 Top New Customers: NPAT (IDR B, YoY%) +20% % +30% FY14 Initiatives Focus on operational improvements while growing customer base especially in MNCs Increase B2B brand awareness on MPMRent Strengthen MIS and CRM / CS capabilities 22

23 MPMFINANCE: MERGER TO STRENGTHEN FRONT-END AND BACK END CAPABILITIES New Booking (IDR B, YoY%) % 709 Revenue (IDR B, YoY%) % 183 NPAT (IDR B, YoY%) 24-5% 23 +3% 2,286 2, % 4, % % 1,280-4% % 196 FY13 / Highlights Strong growth in new booking... Contributed equally between financial lease, 2W + 4W financing Increased revenue due to network expansion and higher lending rate Offset in opex and additional provisionings due to commodity business situation outside Java NPL performance: FY14 Initiatives 2.2% 2.5% 2.4% Execute merger with SAF with JACCS as 40% partner Diversify new product offerings, especially to support the growth of MPMAuto (Nissan & Datsun dealership) Strengthen risk management... Centralized Desk Collection and recovery of write-offs Implementation of life insurance for car financing 2.6% Jun '13 Sep '13 Dec '13 Mar '14 Increase collection efforts to reduce NPL to become <2.0% Note: Assume combined MPMFinance and SAF financials for FY14E 23

24 SAF: TURNAROUND PERFORMANCE IN 2013 New Booking (IDR B, YoY%) +61% FY12 +86% FY13 FY13 / Highlights Strong turn-around performance in new booking and profitability Offset in additional provisionings / write-offs due to commodity business situation outside Java NPL performance: Revenue (IDR B, YoY%) +49% FY12 +31% 305 FY13 FY14 Initiatives 2.0% 1.7% 1.5% 1.5% Jun 13 Sep 13 Dec 13 Mar 14 Execute merger with SAF with JACCS as 40% partner NPAT (IDR B, YoY%) +83% N/A Strengthen risk management and collection capabilities Maintain NPL <2% (6) FY12 FY13 Note: Please refer to MPMFinance FY14E outlook for post-merger estimation 24

25 MPMINSURANCE: STRONG GROWTH THROUGH GROUP AND NON-GROUP BUSINESSES Gross Premium (IDR B, YoY%) FY13 / Highlights +132% +1,411% +72% Additional businesses from new channels nationwide representative offices are registered (Jakarta, Surabaya, Medan, Bandung, Denpasar, Bogor, Pekanbaru, Makasar, Malang and Semarang) NPAT (IDR B, YoY%) +287% +517% +146% 3 13 FY14 Initiatives Increase new partnerships with banks, financing companies and brokers Open 5 additional locations for representative offices 25

26 KEY MESSAGES About MPM Leading End-to-End Consumer Automotive Company in Indonesia Company Updates Continued scale building and growth across all business segments Summary & Business Segments Performance Stable 2W business despite natural disasters, Strong 4W business growth FY14 Outlook [20 ~20% - 25%] revenue revenue growth, growth, ~10% [8 NPATMI - 15%] NPATMI growth year-on-year growth year-on-year 26

27 MPM LOOKING TO MAINTAIN 20+% GROWTH, CONTINUING POSITIVE TRENDS OVER THE LAST 5 YEARS Revenue (IDR Billion) 20+% CAGR NPAT (IDR Billion) 25+% CAGR 13,879 16,600-16, FY10 FY11 7,725 8,453 10,777 NPATMI (IDR Billion) 25+% CAGR FY10 FY FY10 FY11 27

28 SUMMARY AND FY2014 OUTLOOK Key Metrics FY12 FY13 % FY14E % % Profit & Loss (IDR Billion) Net Revenue 10,777 13,879 29% 16,600-16, % 3,233 3,642 13% Gross Profit 1,618 2,024 25% % GP Margins 15.0% 14.6% 14.8% 15.1% Operating Profit % % OP Margins 6.9% 6.5% 6.7% 6.7% Net Profit from Cont. Operations % % NP Margins 3.8% 4.1% 4.0% 4.3% NPAT % % % NPAT Margins 3.8% 4.1% % 4.0% 4.3% NPATMI % % % NPATMI Margins 3.5% 3.8% % 3.6% 4.2% EBITDA 958 1,254 31% % EBITDA % of Revenue 8.9% 9.0% 8.9% 9.3% 28

29 SUMMARY AND FY2014 OUTLOOK (CONTINUED) Key Metrics FY12 FY13 % FY14E % % Balance Sheet (IDR Billion) Cash 1,192 1,103 (7%) 771 (30%) 1,052 (5%) ST & LT Loans 1,911 1,987 4% 3,107 56% 2,102 6% MCNs 1,010 - (100%) - - 0% Bank Funding for fincos (1) 3,216 3,551 10% 4,071 15% 3,770 6% Book Value of Equity 1,837 4, % 5,794 32% 4,564 4% Ratios Net Debt / Equity 2.69x 1.01x 1.11x 1.06 x Net Debt / Equity excl. Fincos (1) 0.39x 0.20x 0.40x 0.23x ROA 4.51% 5.05% 4.19% 5.16% Debt / EBITDA 5.35x 4.42x 4.81x 4.34x Debt / EBITDA excl. Fincos (1) 1.99x 1.58x 2.08x 1.55x (1) MPMFinance and SAF 29

30 Disclaimer These materials have been prepared by PT Mitra Pinasthika Mustika Tbk (the Company, MPM ) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. The Company or any of its affiliates, advisers or representatives accepts no liability whatsoever for any loss howsoever arising from any information presented or contained in these materials. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. These materials may contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as expects, plan, will, estimates, projects, intends, or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forwardlooking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice. 30