FY17 MPM Company Highlights and Financial Results. (Ticker: MPMX) April 2018

Transcription

1 FY17 MPM Company Highlights and Financial Results (Ticker: MPMX) April 2018

2 WE ARE SMART MOBILITY OUR VISION To positively impact lives through smart mobility and social integration. OUR MISSION To create ecosystems of the best ideas (game changing innovation) delivered through the most relevant products and services (understanding people better) in the most effective ways (optimized business models & cross selling), by the most talented people (high performance culture) in our industry.

3 TABLE OF CONTENT MPM: Company Highlights Consolidated FY17 Financial Results Business Segment Performance

4 COMPANY HIGHLIGHTS Founded 1987 by Mr William Soeryadjaya as 2W distribution company Listed in 2013 (IDX:MPMX), M-Cap: $320 MM as of 31 Dec 2017 Indonesia s Leading Smart Mobility Company with businesses: 2W & 4W Distribution & Retail, Aftermarket, Transportation, and Others FY17 Highlights (YoY%): Revenue Rp16.1 T (-3%), Core Earnings (1) Rp403 B (+16%), NPATMI Rp384 B (+6%), EBITDA Rp1.4 T (+6%) Total Employees: 5,200 as of 31 Dec 2017 (1) Core earnings: NPATMI excluding one-time & non-recurring P&L items

5 MPM BUSINESSES: COLLECTIVE POWER (2) (1) #1 M/S for 2W Distributor in E.Java & NTT #1 M/S and brand for 2W aftermarket lubricant Top 5 M/S for 4W aftermarket lubricant #3 largest fleet company with 12~13K cars #1 General Insurance by Warta Ekonomi for financial performance #1 online car sale platform (1) Others include MPMInsurance, MPMFinance and technology enabled businesses (2) Core earnings: NPATMI excluding one-time & non-recurring P&L items

6 MPM GROUP NETWORK 6

7 RECENT KEY EVENTS 2017 Oct 17 Oct 17 Oct 17 Nov 17 Dec 17 FKT received 3 Stellar Workplace 2017 awards in Employee Commitment, Employee Satisfaction and Best Stellar Workplace for Small Size Employer. MPMFinance ranked 2 nd in Multifinance Consumer Choice Award 2017 as Multifinance Company With Very Good Performance for category total asset Rp 5 Rp 10 trillion PMP ranked 1 st as Top Customer Maintenance Free Battery 2017 from Bosch Automotive Aftermarket Indonesia. MPM Group was listed in Top 50 Mid Market Capitalization Public Listed Companies by the Indonesian Institute for Corporate Directorship (IICD). MPMulia received 3 awards for Safety Riding from Astra Honda Motor for category Best Safety Riding Publication, Best Safety Riding Report and Best Safety Riding Achievement 7

8 TABLE OF CONTENT MPM: Company Highlights Consolidated FY17 Financial Results Business Segment Performance

9 FY17: SEGMENT CONTRIBUTION & MOVEMENT Summary FY17 Revenue Rp 16.1T (-3%YOY) FY17 Core Earnings (2) Rp 403B (+15.5%YOY) o Total Revenue though slightly down on a YoY basis, performed better vs. overall market in 2017 o Core earnings which exclude one-off items grew 15.5% reflecting improvement in overall operational levers (1) Others include MPMInsurance, MPMFinance and technology enabled businesses (2) Core earnings: NPATMI excluding one-time & non-recurring P&L items

10 FY17 Financial Highlights P&L Highlights FY17 FY16 YoY% %Rev B/S Highlights FY17 FY16 YoY% Key Ratios FY17 FY16 Net Revenues 16,086 16, % N/A Cash and Equiv. 1,241 1, % Net Debt/EBITDA 1.4x 4.7x Gross Profit 1,835 1, % 11.4% Total Asset 9,741 14, % Net Debt/Equity 0.4x 1.1x NPATMI % 2.4% Bank Funding 3,132 4, % ROE 8.9% 7.3% Core Earnings (1) % 2.5% BV of Equity 4,625 5, % ROA 4.2% 2.7% EBITDA 1, % 8.5% FCCR 3.2x 3.8x CAPEX % 4.0% (In Rp Billion) Summary o Overall profitability improved as a result of smart spending, improved discipline and better productivity o Strong balance sheet with lower leverage ratio and abundant cash for potential M&A opportunities, driven by the divestment of MPMFinance o Financial key levers are heading to the right direction, in line with company s key focus of (1) Core earnings: NPATMI excluding one-time & non-recurring P&L items

11 KEY FOCUS 2017: (1) COST LEADERSHIP Financial Highlights (in Rp billion) FY17 FY16 YoY% %Rev Total Opex 1,126 1, % 7.0% Compensation & Benefit % 2.6% Advertising & Promotion % 1.3% Transportation & Storage % 0.5% Provision % 0.2% Revenue/HC % Average COF 8.4% Summary o Overall Opex has decreased as a result of smart spending and better operational efficiency o Continue monitoring Revenue per Headcount as part of productivity benchmark o Average COF is reduced driven by more competitive interest rates of syndicated loan used to refinance bonds 11

12 KEY FOCUS 2017: (2) OPERATING CASH FLOW FY17 Cash Flow (in Rp billion) Operational Highlights FY16 FY17 YoY% AR Days % AP Days % Inventory Days % Beginning Balance Operating Activities Investing Activities Financing Activities Ending Balance Beginning Balance CF from Operating CF from Investing CF from Financing Ending Balance FY17 1, (669) 1,241 YoY% -13.4% 77.0% 142.2% % -3.4% Summary o Better Cash Conversion Rate and Operational efficiency resulted in the overall improvement in CF from Operating o CF from Investing grew due to the proceeds from MPMF divestment o CF from Financing is down due to payment of special dividend 12

13 KEY FOCUS 2017: (3) NEW GROWTH New Growth-MPM Planet-The Power of Network Effects Indonesian Costumers are socially engaged and community driven market. Rally Point App is the window to our MPM planet. Stretch Dollar is key to the value proposition of MPM planet. New business-online 4W multi-brand platform launched in August. 13

14 14 Bidbox: 4W Online Multi-brand Platform

15 TABLE OF CONTENT MPM: Company Highlights Consolidated FY17 Financial Results Business Segment Performance

16 2W DISTRIBUTION & RETAIL : CONTINUE LEADERSHIP IN E. JAVA AND NTT FY17 Highlights o The market share of the business continued to increase despite lower sales volume. o Revenue went down due to exceptionally bad weather and higher vehicle registration cost. o NPAT was down slightly in line with the lower revenue. Key Initiatives o Launch of 8 new models and revamped 18 models during o Increase in promotional activities to consumer, dealers and financing companies. o New warehouse built in Jombang with total capacity of 18,000 motorcycles which will increase capacity, lower rental costs and optimize distribution network. Sales Volume (Unit in thousands, YoY%) +1% -8% Mulia 902 FY15A 912 FY16A 843 FY17A +2% +3% MSO Revenue (in Billions of Rupiah, YoY%) +7% -3% Mulia + MSO 14,459 13,544 14,000 NPAT (in Billions of Rupiah, YoY%) +30% -3% Mulia + MSO

17 4W DEALERSHIP : IMPROVE SALES PRODUCTIVITY & SERVICE LEVEL FY17 Highlights o Revenue fell by 48% YoY driven by lower sales volume as a result of highly competitive 4W market environment, lack of product launch and scaling down of the dealerships during the year. o Loss was reduced significantly through cost saving as well as restructuring of assets within the business. Sales Volume (Units, YoY%) +29% 4,755 3,680-66% 1,711 1,711 Revenue (in Billions of Rupiah, YoY%) Key Initiatives o Focus on operational efficiency and sales productivity as well as after-sales service quality to the customers. o New multi-brand 4W initiative via Bidbox. 9, % -49% NPAT (in Billions of Rupiah, YoY%) % -19% 17

18 AFTERMARKET: STRENGTHEN CHANNEL & NEW PRODUCT DEVELOPMENT FY17 Highlights o Volume fell slightly mainly due to slower market condition. o Despite the lower volume, revenue is slighty higher due to the increase in ASP to adjust for higher raw material cost. o NPAT is stable, reflecting prudent cost management operational efficiency. Key Initiatives o New Cilegon Plant commenced in August 2017 o o Blending capacity increased to 100 million litres per annum. Lower workforce requirements with automation. o Federal Mobil (4W) o o Focus on market growth outside of Jakarta and Surabaya. Improve B2B channels. Sales Volume (Units in thousands of liters, YoY%) +7% -3% 59,200 63,341 61,346 Revenue (in Billions of Rupiah, YoY%) +6% +1% 1,582 1,675 1,682 FY15A 9,823 FY16A FY17A NPAT (in Billions of Rupiah, YoY%) -10% 0%

19 TRANSPORTATION: MAINTAIN OPERATIONAL EXCELLENCE & CASH FLOW FY17 Highlights o Fleet size is reduced as compared to last year, in line with business strategy to minimize idle rate of the fleet and dispose older vehicles. o Revenue increased significantly driven by higher disposal value of used vehicles. o NPAT has improved but at a lower extent compared to Revenue due to higher provision expense. Key Initiatives o Continuous improvement on operational efficiency and utilization of the fleet. o Improve the portfolio of corporate clients, including new offerings to customers. Fleet Size (Units, YoY%) +1% 13,935 14,137 Revenue (in Billions of Rupiah, YoY%) 1,123 1,095 1,324 NPAT (in Billions of Rupiah, YoY%) -9% 12,843-3% +21% +107% +80% FY15A 0 FY16A 0 FY17A 19

20 MPMINSURANCE: INCREASE PENETRATION GROUP & NON-GROUP BUSINESSES FY17 Highlights o Higher Gross Premium achieved through continuous growth especially in MV segment as well as good retention strategy of existing policy holders. o Higher NPAT is driven by the increase in net underwriting income revenue as well as net investment income. Gross Premium (in Billions of Rupiah, YoY%) +49% +25% Key Initiatives o Increase market penetration in MPM Group business as well as non-affiliated businesses. o Increase network penetration via opening up new branches (Pontianak and Lampung). o Working together closely with strategic brokers both online and offline to grow portfolio and acquire new clients. NPAT (in Billions of Rupiah, YoY%) +30% +65%

21 MPMFINANCE: SOLID GROWTH WHILE MAINTAINING FOCUS ON ASSET QUALITY FY17 Highlights o Asset quality improved YoY basis as reflected by NPL level. o Higher revenue was driven by the increase in new 4W bookings as a result of effective marketing program and more competitive interest rates. o NPAT increased as a result of better asset quality and lower provision cost. Key Initiatives 3.2% 3.2% 2.7% 2.3% 2.6% 2.8% 2.4% Jun'16 Sept'16 Dec'16 Mar'17 Jun'17 Sept'17 Dec'17 o Constantly looking for the most competitive funding in order to support the business growth. o Work together with various 4W brands to increase channel and leads to grow the business. o Implement prudent credit and underwriting process to maintain low NPL level. New Booking (in Billions of Rupiah, YoY%) 2, % 4,015 Revenue (in Billions of Rupiah, YoY%) 9,823 NPAT (in Billions of Rupiah, YoY%) +27% 5,113 +2% +9% 1,164 1,185 1, % +23%

22 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. 22