Q2 2018 / 1H 2018 Earnings Call 31 July 2018...
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1 Q2 2018 / 1H 2018 Earnings Call 31 July 2018
Transcript of Q2 2018 / 1H 2018 Earnings Call 31 July 2018...
1Q2 2018 / 1H 2018 Earnings Call 31 July 2018
Contents
Indonesia Macro Overview 4
Q2 2018/ 1H 2018
Key Financial Highlights 6
Sales and DP/CV Mix 7
Same Store Sales Growth 8
Regional GDP, Sales and SSSG 9
Gross Profit and Margin 10
OPEX 11
EBITDA and Margin 12
Net Income and Margin 13
Inventory and Cash Position 14
Operational & Strategic Updates
Store Network 16
Mataharistore.com 17
Summary 18
Appendix
Shareholding Structure 20
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3Indonesian Macro Overview
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4.17%
4.33%
4.37%
3.88%
3.82%
3.72%
3.58%
3.30%
3.61%
3.25%
3.18%
3.40%
3.41%
3.23%
3.12%
Ap
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Ma
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Ju
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Ju
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Au
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Se
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Oct-
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No
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De
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Ja
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Feb
-18
Ma
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Ap
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Ma
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5.14%
5.03%4.92%
5.01%
4.71%
4.67% 4.73%
5.04%
4.92%
5.18%
5.02%
4.94% 5.01%
5.01%5.06%
5.19%
5.06%
1Q
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2Q
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3Q
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4Q
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1Q
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2Q
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3Q
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4Q
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1Q
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2Q
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3Q
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4Q
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1Q
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2Q
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3Q
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4Q
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1Q
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115.3117.1
121.5
123.7125.9
122.4
123.4
121.9
123.8
120.7
122.1
126.4126.1
122.5121.6
122.2
125.1
128.1
Ja
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Feb
-17
Ma
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Ap
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Ma
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Ju
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Ju
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Au
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Se
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Oct-
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No
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De
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Ja
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Feb
-18
Ma
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Ap
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Ma
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Inflation
Consumer Confidence Index
Source: Bank Indonesia and BPS
Indonesian economy at a glance
GDP Growth
.
5Q2 2018 Financials
1st HALF
(in Rp Bn) 2017 2018 YoY
Gross Sales 10,017 10,370 +3.5%
SSSG 8.0% 4.6%
Gross Profit 3,615 3,744 +3.6%
EBITDA 1,859 1,884 +1.4%
Net Income 1,338 1,345 +0.5%
Gross Margin 36.1% 36.1% 0 bps
EBITDA Margin 18.6% 18.2% -40 bps
Net Margin 13.4% 13.0% -40 bps
Key Financial Highlights
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2ND QUARTER
(in Rp Bn) 2017 2018 YoY
Gross Sales 6,802 7,002 +2.9%
SSSG 14.6% 4.5%
Gross Profit 2,450 2,526 +3.1%
EBITDA 1,470 1,486 +1.1%
Net Income 1,094 1,098 +0.4%
Gross Margin 36.0% 36.1% +10 bps
EBITDA Margin 21.6% 21.2% -40 bps
Net Margin 16.1% 15.7% -40 bps
Total sales continue to grow
Sales
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FY ‘16 FY ‘17
DP 37.0% 37.2%
CV 63.0% 62.8%
17,294 17,496
Q2 ‘17 Q2 ‘18
DP 37.2% 36.6%
CV 62.8% 63.4%
6,802 7,002
1H ‘17 1H ‘18
DP 37.1% 37.1%
CV 62.9% 62.9%
10,016 10,370
SSSG %
SSSG was 4.5% in Q2 2018 and 4.6% in 1H 2018
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14.6%
4.5%
Q2' 17 Q2' 18
8.0%
4.6%
1H' 17 1H' 18
5.5%
-1.2%
FY ‘16 FY ‘17
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East Java
Sumatra
Bali and East Indonesia
West Java
Greater Jakarta
Central Java
Gross Sales by Region
(%)
Q2 2018 1H 2018
Greater Jakarta 26.7% 26.8%
Java exc Jkt 36.3% 35.5%
Outside Java 37.0% 37.8%
Total Sales 100.0% 100.0%
Outside Java outperformed the other regions
Kalimantan
Note: Regional GDP as of Q1 2018
Source: Bank Indonesia for GDP growth
SSSG Greater Jkt
Q2 : 3.5%
1H : 4.3%
SSSG Java
Q2 : 3.8%
1H : 3.4%
SSSG Outside Java
Q2 : 6.0%
1H : 5.9%
> 7%
6% < GDP ≤ 7%
5% < GDP ≤ 6%
4% < GDP ≤ 5%
GDP ≤ 4%
Negative
2,450 2,526
Q2' 17 Q2' 18
Gross profit and margins
IDR Bn
Merchandise margins increased in Q2, flat in 1H
+10 bps
Gross profit as a % of Gross Sales
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3,6153,744
1H '17 1H '18
36.0% 36.1% 36.1% 36.1%
6,146 6,203
FY' 16 FY' 17
35.5% 35.5% 0 bps0 bps
14.4%14.9%
Q2' 17 Q2' 18
10.9% 10.7%
2Q' 17 2Q' 18
Opex(1) as a % of Gross Sales
Store opex leverages, overall marketing spend up over last year
Note
1. Opex calculated as Adjusted Gross Profit less Adjusted EBITDA
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Total Company
Total Company Comp store
13.5% 13.3%
1H' 17 1H' 18
17.5%
17.9%
1H' 17 1H' 18
18.9%
19.4%
FY' 16 FY' 17
2,872 2,808
FY' 16 FY' 17
1,470 1,486
Q2' 17 Q2' 18
EBITDA and Margins
IDR Bn
Operating EBTDA up 1.4% for 1H 2018
EBITDA as a % of Gross Sales
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Notes
EBITDA adjusted for severance pay
1,859 1,884
1H' 17 1H' 18
16.6% 16.0% 21.6% 21.2% 18.6% 18.2%-40 bps -40 bps-60 bps
Net income up by 0.4% in 2Q 2018 and 0.5% in 1H 2018
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Net Income as a % of Gross Sales
1,094 1,098
Q2' 17 Q2' 18
7.6%
Net Income (IDR Bn)
1,338 1,345
1H' 17 1H' 187.6%
2,0201,907
FY' 16 FY' 17
16.1% 15.7% 13.4% 13.0%11.7% 10.9%-80 bps -40 bps -40 bps
Post Lebaran cash on hand is Rp 2.5T
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INVENTORY DAYS, CASH POSITION AND OUTSTANDING BANK LOAN BALANCE
(in IDR Bn) End of Mar 2018 End June 2018
LTM Ave. Inventory Days 120 days 123 days
Cash on Hand Rp 1,106 Bn Rp 2,502 bn
Outstanding Bank Loan Balance Rp 0 Rp 0
CAPEX AND REFURBISHMENTS
(in IDR Bn) FY 2017 FY 2018E
Capex Rp 323 Bn Rp 350-450 Bn
Refurbishments 16 10-20
Operational and Strategic Updates15
o Opened 2 new stores in Q2
o May: Mamuju, Sulawesi (new city)
o May: Cilegon, West Java
o Closed 1store in Q2
o Apr: Medan, Sumatra (Lease expiry)
o Will open 1-2 more new stores in 2H18
FY2018 expansion plans
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28.5% 28.0% 27.5% 27.5% 28.5% 25.8%
36.2% 35.2% 32.8% 32.4% 31.1% 33.5%
35.3% 36.8% 39.7% 40.1% 40.4% 40.6%
2012 2013 2014 2015 2016 2017
Greater Jakarta Java exc Jkt
No Geographic area
Actual FY2018 Forecast
FY2017 Q2 2018 Balance Future Pipeline 2019 and onwards
# of stores # of stores # of stores # of stores % mix
1 Jabodetabek (Greater Jakarta) 40 40 0 6 15.8%
2 Java (Exc Greater Jakarta) 52 52 1-2 13 34.2%
3 Outside Java 63 63 0 19 50.0%
Total 155 155 1-2 38 100.0%
Store Count Split by Region
Matahari.com performance update
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Sales by Region – Online (Q2 2018)
Sales by Category - Offline (Q2 2018)
Greater Jakarta, 38.5%
Java excl. G. Jkt, 52.9%
Outside Java, 8.6%
Men/ Youth boy, 36.5%
Ladies/ youth girl,
23.5%
Shoes, 19.3%
Children, 19.1%
Bags/ accessories,
5.3%
Cosmetics, 0.1%
Others, 3.4%
Sales by Category - Online (Q2 2018)
MATAHARI.COM
Q2 ’18
Sales growth (QoQ) 32%
Basket size growth (QoQ) 46%
Men/youth boy, 33.5%
Shoes, 19.0%
Ladies/youth girl, 18.4% Children,
18.5%
Cosmetics, 4.7%
Bags/Accessories, 1.7%
Others, 4.2%
Same store sales growth in Q2 was 4.5% and gross margin rose 10 bps following a tighter
and more selective promotions strategy
Total same store sales growth for the 1st half was 4.6%
Our new merchandising initiatives continue to gain traction
2018 new stores are now seen at 3-4 stores for the year
Our Online business is on track to double sales from last year
“Mataharistore.com” has been rebranded to “Matahari.com”, with the new app to be
launched by the end of this year
Summary
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19Appendix
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82.5% 17.5%
PT Matahari Department Store Tbk
Public Multipolar
Shareholding Structure
Notes
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Notes
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