3Q14 MPMX ANALYST & INVESTOR PRESENTATION

Transcription

1 PT Mitra Pinasthika Mustika Tbk 3Q14 MPMX ANALYST & INVESTOR PRESENTATION 4 November

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 (NPAT GROWTH) About MPM Leading End-to-End Consumer Automotive Company in Indonesia Company Updates Progressing despite macro challenges Business Segments Performance Strong 2W business despite natural disasters, Strengthen 4W businesses 5-Year & 9M14 Summary Maintain Prudent Growth 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 May-Jun 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 Merger of MPMFinance- SAF, JACCS becomes 40% owner 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 290 dealer relationships 2W Honda retail dealers with 40 outlets nationwide 2W engine lubricant brand principal with 35 distributors and 15,000+ outlets nationwide N/A Independent 2W, 4W, lease financing business with 133 outlets nationwide 4W Nissan & Datsun dealership, opened 1st outlet in Mar 14 4W engine lubricants (currently in bulk) Independent 4W rental/lease company with 36 outlets and workshops Non-life insurance including 2W, 4W, cargo, & property with 10 offices & 9 service points nationwide 2,6M+ active 2W customers, ~1,000 new 4W orders since inception Federal Oil Centers, 13,000+ 3rd party retailers, 10M+ 2W customers 1,500+ corporate clients 240K+ finance & lease customers, 34K+ insurance clients Data as of 3Q14 5

6 ...WITH MARKET LEADING POSITION DRIVING GROWTH SCALE POSITION + GROWTH (1) DISTRIBUTION & RETAIL #1 E. Java, 71% market share #5 nationwide by volume 1 of 2 nationwide dealer 14% 2W volume growth 14% 2W retail volume growth 850 unit orders since inception AUTO CONSUMER PARTS #1 for Honda, 23% market share (2) 10% lube volume growth AUTO SERVICES #2 largest nationwide by fleet size 44% fleet size growth FINANCIAL SERVICES Top 2 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 (2) Based on market survey and analysis by FKT 6

7 BALANCED SEGMENT PROFIT CONTRIBUTION IN THE ECOSYSTEM 7% 7% 7% 7% Revenues 9M13 IDR 10.3T +31% YoY 11% Revenues 9M14 IDR 12.0T +16% YoY 9% 75% 77% 20% -1% 10% 7% NPATMI 9M13 IDR 411B 43% +56% YoY 9% NPATMI 9M14 IDR 399B 47% -3% YoY 37% 28% Distribution & Retail Auto Consumer Parts Auto Services Financial Services Others 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 80 years of combined professional experience Shareholder Composition 47.6% 30,3% 15.3% 6.8% PT Saratoga Investama Sedaya Tbk and Affiliates Morninglight Investments S.a.r.l Claris Investment Pte. Ltd. Public & Others 8

9 KEY MESSAGES (NPAT GROWTH) About MPM Leading End-to-End Consumer Automotive Company in Indonesia Company Updates Continued Progressing scale despite building macro and challenges growth across all business segments Business Segments Performance Strong 2W business despite natural disasters, Strengthen 4W businesses 5-Year & 9M14 Summary Maintain Prudent Growth 9

10 JUNE SEPTEMBER 2014 KEY EVENTS: PROGRESSING THROUGH DESPITE MACRO BACKGROUND Jun 14 Jun - Jul 14 Jul Aug 14 Mulia received top awards from AHM for sales & digital channels, achieved 100,000 unit sale in Jun 14 Aug - Sep 14 MPMAuto delivered 1st Datsun to its customer,~200 units YTD + opened Nissan UCARS dealership Sep 14 MPMInsurance rated #11 for Insurance Co < IDR250B premium and SAF rated #1 for Finco by InfoBank magazine Sep 14 Federal Oil received WOW Brand award from MarkPlus, launched 4W lube product in Sep Nissan launched new X-Trail, top rated new SUV MPMX successfully launched US$200 million bond, 5Y coupon rate 10

11 MPMAUTO: BUILDING DEALERSHIPS, FOCUS ON PRODUCTIVITY 1 Customer Service Differentiation 2 Tap Digital / Virtual Channels Alam Sutera: 3S type, largest in SEA, 51 service bays Nissan UCARS dealership In-house training for CS service level Improve employee quality Create virtual community forums Interactive website Digital marketing activities to promote and educate customers No Dealership Start of Sales 1 Tanjong Priok - Jakarta Mar 14 2 Pluit - Jakarta Jul 14 3 Alam Sutera - Tangerang Oct 14 4 Cilacap - C. Java Oct 14 5 Tambun - Bekasi Oct 14 6 Tanjong Pinang - Riau Nov 14 7 Kenjeran - Surabaya Dec 14 8 Bengkulu Jan 15 3 Partnership with FinCos + Local Partners Tap new customer database Increase productivity / dealer 100% MPM controlled brand & operations Manage capex 11

12 MPM HAS USED UP 88% OF THE PROCEEDS RAISED IN THE IPO In IDR B (%) denotes percentage of net IPO proceeds. 270 MPMRent purchase new cars 20% 300 FKT 17% stake acquisition 23% 220 MPMRent acquisition of SAK (1,280 cars) 16% 970,000,000 shares (21.7% of enlarged TSO) were offered to public market at IDR1,500 per share The 2013 P/E valuation is about 10.7X, with MPMX price at IDR 1,300 12% 1,355 Net IPO proceeds 175 MPMAuto build dealers 13% 8% 8% 160 FKT factory 115 Loan repayment Has been executed To be executed 115 FKT factory 12

13 KEY MESSAGES (NPAT GROWTH) About MPM Leading End-to-End Consumer Automotive Company in Indonesia Company Updates Progressing despite macro challenges 1Q14 Business Summary Segments & Business Performance Segments Performance Stable Strong 2W business despite natural disasters, Strong Strengthen 4W business 4W businesses growth 5-Year & 9M14 Summary Maintain Prudent Growth 13

14 2W DISTRIBUTION & RETAIL: INCREASE MARKET SHARE DESPITE MACRO CHALLENGES Sales Volume (000 units, YoY%) Mulia 677 9M13 MSO 83 9M13 +8% 732 9M14 +4% 86 9M % +6% % +3% Q14 Highlights 3Q14: increased sales volume due to logistics improvement and tobacco harvest time Achieved sales of 92,400 units during Sep 14 8% increase in motorcycle sales in East Java and East Nusa Tenggara year-to-date allowing Mulia to command 71% market share in these regions Revenue (IDR B, YoY%) +13% 8,661 9,790 9M13 9M14 NPAT (IDR B, YoY%) +11% M13 9M14 9, % 11,602 12, % +6% +6% FY14 Initiatives Establish additional warehouse facilities to cater for southern area of East Java Recruit more productive sales force for indirect sales Review overhead expenses including advertising & promotional expenses Increase sales volume by designing more competitive and attractive credit/installment program 14

15 4W DEALERSHIP: SCALING UP AND EXECUTION Sales Volume (Car Units, YoY%) 16,670-9M M ,112-3Q14 Highlights MPM Auto s 3rd dealership was opened in Cilacap, Central Java... For Nissan & Datsun brand Signed a MoU with BCA Finance in Sept 14 to sell Nissan and Datsun cars to BCA customers Launched Datsun Go Hatchback in Aug 14 and New X- Trail in Sept 14 Revenue (IDR B, YoY%) 1, M13 9M14 NPAT (IDR B, YoY%) (9) 1, (9) M13 9M14 FY14 Initiatives Open 7 dealers nationwide by year end focusing on 3S : showroom, services, and spare parts Tap into e-community channels + loyalty programs Partners with major financing companies & local partners Open Alam Sutera flagship dealer, largest in SEA (1) MPM Auto commenced selling cars on November

16 CONSUMER PARTS: CONTINUING BRAND BUILDING & DISTRIBUTION ACTIVITIES IN FKT (1) TO INCREASE GROWTH Sales Volume (KL, YoY%) +0% 47,037 47,355 9M13 9M14 +8% 56,393 60,632 +0% 60,950 3Q14 Highlights Federal Oil received WOW Brand award from MarkPlus Increased position from #4 in 2013 to #2 in 2014 in Indonesian Customer Satisfaction Award for 2W engine lubricant category Ongoing ATL and BTL marketing and promotion activities to strenghten brand equity Revenue (IDR B, YoY%) +8% 1,114 1,207 9M13 9M14 NPAT (IDR B, YoY%) +11% M13 9M14 1, % 1,444 +6% 1,537 +8% +10% FY14 Initiatives Focus on higher growth MATIC segment: product/sku refinement and new product formulation introduction Lock-in location for blending plant expansion Continuous focus on operational efficiencies Entry into 4W lubricant business: launch own 4W lubricant branded products (1) FKT = PT Federal Karyatama through its lubricant brand 16

17 AUTO SERVICES: SOLID ORGANIC GROWTH, FOCUS ON OPERATIONAL IMPROVEMENTS Fleet Size (Units, YoY%) 13,030 9M13 +24% 16,112 9M14 7, % 13, % 16,584 3Q14 Highlights Refinance existing bank facilities through proceeds obtained from the bond issuance completed in Sept 14 Re-focus its strategy to more prudent growth by selective new customer acquisition + cost control Average length of contract: 2.5 years Key Customers: Revenue (IDR B, YoY%) +27% M13 9M14 NPAT (IDR B, YoY%) 63 9M13-16% 53 9M % % +20% 1,122 +0% Top New Customers: FY14 Initiatives Revenue & margin enhancement Portfolio rebalancing in customer segments, vehicle types, and products Optimum driver service quality Focus on quality customers rental rate and cost efficiencies Expand from B2B to B2C 17

18 MPMFINANCE: FINALIZE MERGER AND GROW PORTFOLIO New Booking (IDR B, YoY%) 2,511 9M13 +20% 3,002 9M14 Revenue (IDR B, YoY%) +17% +11% 3,778 4,424 4,915 3Q14 Highlights Post-merger integration still underway The volume booking grew by 20% in the 3rd quarter 2014 compared to the same period last year Revenue offset by opex and increased in provisioning expenses NPL Performance (>90 days): (1) 723 9M13 +19% 863 9M % % 1, % 2.2% 2.3% 2.6% 2.5% Sep '13 Dec '14 Mar '14 Jun '14 Sep '14 FY14 Initiatives Post-merger integration of SAF with MPMFinance NPAT (IDR B, YoY%) -18% M13 9M % -13% Diversify new product offerings, especially to support the growth of MPMAuto (Nissan & Datsun dealership) Establish new Risk Management Directorate Increase collection efforts to reduce NPL (1) Note: combined MPMFinance and SAF financials for FY14 18

19 MPMINSURANCE: STRONG GROWTH THROUGH GROUP AND NON-GROUP BUSINESSES Gross Premium (IDR B, YoY%) 53 9M13 +87% 99 9M ,420% % 122 3Q14 Highlights Strong performance in 3Q14 with gross premium grew by +80% and Net Profit +300% YoY compared to 2013 Opened 3 new offices in Solo, Purwokerto and Palembang during 3Q14 bringing the total number of representative offices to 12 (excluding head office) Introduced 3 new products during 3Q14 in addition to existing 7 products already available in the market NPAT (IDR B, YoY%) +300% M13 9M % % 12 Further co-operation with insurance brokers servicing both wholesale and individual markets to generate additional business FY14 Initiatives Open 2 additional locations for representative offices in FY14 Build a solid management information system to support decision making process Increase new partnerships with banks, financing companies and brokers 19

20 KEY MESSAGES (NPAT GROWTH) About MPM Leading End-to-End Consumer Automotive Company in Indonesia Company Updates Progressing despite macro challenges Business Segments Performance Strong 2W business despite natural disasters, Strengthen 4W businesses FY14 5-Year Outlook & 9M14 Summary [20 Maintain - 25%] Prudent revenue Growth growth, [8-15%] NPATMI growth year-on-year 20

21 MPM LOOKING TO MAINTAIN 20+% GROWTH, CONTINUING POSITIVE TRENDS OVER THE LAST 5 YEARS Revenue (IDR Billion) 20+% CAGR NPATMI (IDR Billion) 25+% CAGR ,879 15, FY FY FY12 FY13 FY10 FY11 FY12 FY Q14 3Q14 7,725 8,453 10,777 NPAT (IDR Billion) 25+% CAGR FY10 FY11 FY12 FY13 3Q FY10 FY11 FY12 FY13 3Q14 21

22 5-YEAR & 9M14 SUMMARY Key Metrics FY12 FY13 % 9M13 9M14 % Profit & Loss (IDR Billion) Net Revenue % % Gross Profit % % GP Margins 15,0% 14,6% 14,7% 14,4% Operating Profit % % OP Margins 6,9% 6,5% 7,0% 6,0% NPAT % % NPAT Margins 3,8% 4,1% 4,3% 3,5% NPATMI % % NPATMI Margins 3.5% 3.8% 4.0% 3.3% EBITDA % % EBITDA % of Revenue 8,9% 9,0% 9,4% 8,5% 22

23 5-YEAR & 9M14 SUMMARY (CONTINUED) Key Metrics FY12 FY13 % 9M14 % Balance Sheet (IDR Billion) Cash 1,192 1,103-7% 1,932 75% ST & LT Loans*) 1,911 1,987 4% 1,130-43% MCNs 1, Bonds ,395 - Bank Funding for SAF and MPMFinance 3,216 3,551 10% 3,569 1% Book Value of Equity 1,837 4, % 5,340 22% Ratios Net Debt / Equity 2.69x 1.01x 0.97x Net Debt / Equity without SAF and MPMF 0.39x 0.20x 0.30x Net Debt / EBITDA 4.11x 3.54x 3.94x Net Debt / EBITDA without SAF and MPMF 0.75x 0.71x 1.22x Note: *) Loan without SAF and MPM Finance 23

24 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 forward-looking 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. 24