Matahari Department Store
Transcript of Matahari Department Store
Indonesia’s Most Preferred Department Store1
April 30, 2013
Matahari Department Store
Q1’FY13 Results Update
Indonesia’s Most Preferred Department Store2
Today’s Agenda
� Key Highlights
� Business Update
� Financial Update
� Conclusion
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Key Highlights
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Key Highlights
• Successfully completed the share offering
• Strong Q1 results despite the impact of flooding in the Jakarta area
• Completed voluntary debt prepayment of IDR 700 Bn
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Recap of Share Offering
• Share offering completed in March 2013 with subsequent exercise of over-allotment
option in April 2013
• Strong positive response from high quality global investors
• Free float increased to 47.4%
• Including the exercise of the over-allotment option, 1,327,765,500 shares were placed
out to investors at an offer price of Rp10,850 per share
Post-Offering Shareholding Structure
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32.2%47.4% 20.5%
PT Matahari Department Store Tbk
Public ACC Multipolar
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Business Update
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Business Highlights Q1’13
• Total gross sales IDR 2,372 Bn, 18.3% over Q1 2012
• Same store sales growth of 13.2%
• Merchandise gross margin improved 10 bps over 2012
• Net Income increased 82.8% to IDR 82.2 Bn
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Financial Snapshot
2,006
2,372
Q1'12 Q1'13
IDR Bn
Gross Sales
SSSG
18.3%
13.2%
255
297
Q1'12 Q1'13
IDR Bn
Adjusted EBITDA
12.7%
Adjusted EBITDA Margin
16.3%
12.5%
45
82
Q1'12 Q1'13
IDR Bn
Net Income
2.2%
Net Income Margin
82.8%
3.5%
11.7%
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Operating 118 Stores Across 57 Cities
No new stores scheduled in Q1 2013, 2 stores opened in April 2013 in line with schedule
East Java
16 Stores (9 cities)
Sumatra
18 stores (10 cities)
Kalimantan, Bali and East
Indonesia
24 Stores (13 cities)
MDS Store Overview
No. of Stores
As of 31 Dec 2012 116
Added up to April 2013 2
Total at April 2013 118
Up to April 2013 (1)
West Java
11 stores (7 cities)
Greater Jakarta33 stores (10 cities)
Central Java
16 stores (8 cities)
Note
1. Numbers in brackets indicate new stores added up to April 2013
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Strong Store Pipeline
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# of stores % mix # of stores % mix
1 Jabodetabek (Greater Jakarta) 33 28.5% 13 20.0%
2 Java (Exc Greater Jakarta) 42 36.2% 16 24.6%
3 Outside Java 41 35.3% 36 55.4%
Total 116 100.0% 65 100.0%
2013-2015Geographic areaNo
As at 31 Dec 2012
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Strong Performance From Private Label Brands In Q1 2013
DP Increase Mix Of Business to + 2.6% in Q1 2013
% of Gross Sales
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DP
29.1%
CV
70.9%
DP
29.0%
CV
71.0%
FY12
DP
31.6%
CV
68.4%
Q1’12 Q1’13
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Financial Update
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Strong Total Sales Growth
IDR Bn
Strong sales growth in Q1 2013
9,247
10,884
2,006
2,372
2011 2012 Q1'12 Q1'13
+18.3%
+17.7%
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Driven by double-digit same-store sales growth
SSS growth %
Strong same-store sales growth in Q1 2013
13.6%
11.1%11.7%
13.2%
2011 2012 Q1'12 Q1'13
Average 12.4%
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20.7%21.0%
Q112 Q113
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Wages pressure affected opex in Q1 as anticipated
Note
1. Opex calculated as Adjusted Gross Profit less Adjusted EBITDA
Adjusted Opex(1) as a % of Gross Sales
17.7%
17.1%
2011 2012
(60) bps
+30 bps
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EBITDA increased 16.3% over 2012
Adjusted EBITDA and Margins
1,479
1,819
255 297
2011 2012 Q1'12 Q1'13
+16.3%
16.0%
16.7%
12.7% 12.5%
IDR Bn
Adjusted EBITDA as a % of Gross Sales
+23.0%
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45
82
Q1'12 Q1'13
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Net profit margin increased 82.8% over 2012
Net Profit and Margins
466
771
2011 2012
+82.8%
5.0%
7.1%
2.2%
3.5%
IDR Bn
Net Profit as a % of Gross Sales
+65.4%
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Note: Q1 2013 assumes a 25% base tax rate. If base tax rate was 20%, net profit margin would be 93.4 Bn, 3.9% of gross sales and an increase of
108% over last year.
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Voluntary prepayment of IDR 700Bn was made in Q1’13
Total Debt and Interest Expense
� Total debt declined by 441Bn, due to voluntary
prepayment
� Management intends to make additional
voluntary prepayments during the course of the
year
� Effective interest rate declined from 13.1% in
Q1 ‘12 to 11.1% in Q1 ’13 following the
refinancing of the loan from Matahari Pacific in
August 2012.
Commentary
Notes
1. Excluding amortization of upfront fees
2. 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
3. Total debt comprises of bank loan, revolving loan and vendor loan
2,959
2,518
Q4'12 Q1'13
111
81
Q1'12 Q1'13
Total Debt Interest expense
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Strong SSSG across each region
Sales Growth and SSSG by Region
Geographic AreaStores as at
Q1’13
Store Mix
% to Total
Q1 Sales
(IDR Bn)
Q1 Total Sales
% growthSSSG%
Greater Jakarta 33 28.5 727.5 14.3 12.2
Java exclude Greater Jakarta 42 36.2 738.4 22.8 18.1
Outside Java 41 35.3 906.4 18.0 10.1
Total 116 100.0 2,372.3 18.3 13.2
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Financial Summary
Q1’12 Q1’13
Gross Sales 2,005.9 2,372.4
SSSG 11.7% 13.2%
Growth 16.5% 18.3%
Net Revenue 1,033.8 1,257.2
Growth 17.2% 21.6%
Adjusted Gross Profit 669.4 794.0
Margin 33.4% 33.5%
Adjusted EBITDAR 415.6 486.0
Margin 20.7% 20.5%
Adjusted EBITDA 255.1 296.7
Margin 12.7% 12.5%
Profit before tax 95.7 138.1
Margin 4.8% 5.8%
Net Profit 45.0 82.2
Margin 2.2% 3.5%
growth 82.8%
IDR Bn
Key Profit & Loss Items
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Summary
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Q1’13 Summary and Plans for 2013
• Exceeded Company internal plans in Q1
• Seeing strength in sales and earning growth, driven by the increased
disposable income in our target segment
• Management has a positive outlook for the balance of the year
• Accelerated debt repayment is on track in 2013
• Store pipeline continues to grow
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End of Presentation