0
PT Mitra Pinasthika Mustika Tbk
Analyst Gathering26 July 2013
www.mpmgroup.co.id
Agenda
1
I. Company Overview
II. 1H13 Results & FY13 Outlook
I. COMPANY OVERVIEW
Distribution & Retail Auto Consumer Parts Auto Services Financial Services
(a) Includes 14.3% of Individual shareholders in PT Rasi Unggul Bestari(b) 100% for MPMFinance; 60% for SAF; 55% for MPMInsurance(c) Motor Distributor is under our 100% subsidiary, Mulia; Motor Sales is an operating division within MPM
3
Honda motorcycle master distributorin East Java & East Nusa Tenggara
Honda motorcycle retail dealerin 11 provinces
Motorcycle lubricant oilmanufacturer and distributor
nationwide
B2B vehicle rental operator
Car financingcompany
Motorcyclefinancingcompany
Auto and cargoinsurancecompany
PT. SaratogaInvestamaSedaya Tbk
MorninglightInvestments S.a.r.l
Public and IndividualShareholders(a)
100%100% 100% 55-100%
39.8%15.3%44.9%
(b)
(c)
A leading automotive company in Indonesia
(c)
Shareholding and Organization Structure (as of 30 June 2013)
Simon HalimIndependent
Commissioner
Titien SupenoHR Director
Troy ParwataFinance Director
JohanesHermawanOperations
Director
Koji ShimaVice President
Director
Tossin HimawanPresident Director
Board of DirectorsBoard of Commissioners
Edwin SoeryadjayaChairman
Inghie KwikVice Chairman
Danny WallaCommissioner
Istama TatangSiddharta
IndependentCommissioner
MPM has the best-in-class management team
4
BoD members bring over 140 years of combinedexperience in the automotive industry
BoC brings strong mix of operational, strategy, M&Aand governance expertise
5(a) 2H13 Outlook(b) As of 1H13 MSO has 40 retail outlets
Mitra Pinasthika Mulia (“Mulia”) Mustika Sales Operations (“MSO”)Distributor of Honda motorcycles inEast Java and East Nusa Tenggara
Retail sales and services of motorcycles
Rapid sales volume growth, driven by aggressive expansion…Consistent market share capture, supported by…
…best-in-class warehousing and supply chain operations …and well-managed retail dealership network
Honda M/S inEast Java (%)
Motorcycle sales‘000 units
Motorcycle sales‘000 units
Number ofretail outlets47 51 63 66 66(a) 17 22 31 38 41(a)
415 (a) 62 (a)
(b)
656611504736
+14%
2013
863(a)
448
415(a)
2012201120102009
99867554
+21%
2013
114(a)
52(b)
62(a)
2012201120102009
Mulia and MSO are among the best distribution and retailfranchises for Honda motorcycles in Indonesia
6
Federal Karyatama (“FKT”)
Producer and manufacturer of Federal Oil motorcycle lubricant oil. Also does blending and packaging forAHM Oil, the OEM motorcycle oil brand for Honda motorcycles
Sales VolumeKL
32.124
+11%
2013
64,874(a)
32,12432,750(a)
2012
56,393
2011
52,713
2010
45,270
2009
43,370
(a) 2H13 Outlook
Federal Oil is a leading brand in motorcycle lubricantsnationally
Strong ProductPortfolio
Strong ProductPortfolio
Attractive GrowthProfile
Attractive GrowthProfile
Best in ClassProduction Facility
Best in ClassProduction Facility
11
22
33
Matic Products
FederalMatic 30
FederalMatic 40
Gear OilMatic
Non-matic Products
SupremeUltratec
SupremeXX
Evotec 30 Evotec 40
7
Exceptional Growth in Fleet Size
Fleet sizeNumber of cars
Provider of full suite of transportation solutions such as vehicle rental, driver service, fleet management,car pooling, and auto body repair
Wide Geographic Presence
12,104
(a) 2H13 Outlook(b) Sample customers. MPMR has over 950 customers as of June 2013 (c) Source : MPMRent Data as of June 2013
+41%
2013
14,066(a)
12,104
1,896 (a)
2012
7,991
2011
6,196
2010
4,490
2009
3,578
MPMR is the 2nd largest vehicle rental company nationally
Reputable Corporate Clients (b)
12,104
Loyal Customer Profile(c)
Mitra Pinasthika Mustika Rent (“MPMR”)
18%
30%
50%
2%<= 1 year> 1 - 5 years> 5 - 10 years> 10 years
JakartaSurabaya
BalikpapanSemarang
SoloCilegon
Malang
Palembang**
Pekanbaru
Medan
Bandung
Banjarmasin**
LampungSulawesi Selatan
Sulawesi Utara
Bali
Padang
Nunukan
Aceh Kutai Barat
Cirebon
BatamPontia
n
ak
SamarindaJambi
8
• Focus on new and used car purchases aswell as used car and motorcyclerefinancing
• Strong relationship with fundingproviders as well as numerous retail cardealers and showrooms
• 47 branches, 88 outlets and 10marketing offices
• Focus on new Honda motorcycle, usedmotorcycle financing and electronicgoods financing
• Partnership with JACCS, a leadingJapanese consumer finance company,to lower overall funding cost
• 32 branches in 6 provinces
• Offers vehicle, cargo and propertyinsurance
• Established to leverage on broaderinsurance opportunities within MPM
• Reinsurance treaty with SwissReinsurance
• 6 representative offices
Loan portfolio, IDR billion Loan portfolio, IDR billion
88.5%95.9% 87.0%88.4%
(a) 2H13 Outlook
MPM has three financial services subsidiaries to complementits operations
+22%
FY13
3,353(a)
2,999
354 (a)
FY12
2,864
FY11
2,242
+11%
FY13
1,298(a)
1,119
179(a)
FY12
951
FY11
1,061
34
+1,380%
FY13
74(a)
40(a)
FY12
5
Gross Premium, IDR billion
9
MPM has clear strategy to grow its businesses and to furthercapture new opportunities within automotive industryIndonesia’s automotive industry is attractive andgenerated over $59 bn of sales in 2011 MPM has a clear 3-prong strategy to capture growth
Car manufacturing ($12.7 bn)
Car distribution ($13.1 bn)
Car retail ($14.8 bn)
2W manufacturing ($11.2 bn)
2W distribution ($11.9 bn)
2W retail ($13.5 bn)
Spare parts ($1.1 bn)
Lubricant oil ($1.7 bn)Batteries ($1.1 bn)
Tires ($2.1 bn)
Car rental ($2.4 bn)
Taxi ($0.5 bn)
Motorcycle financing ($2.0 bn)
Car financing ($1.5 bn)
Vehicle insurance ($1.2 bn)
Used motorcycle resale ($7.5 bn)
Used car resale ($9.7 bn)
New CarSale
New 2WSale
AutoConsumerParts
AutoServices
Other
AutoFinancialServices
Push inorganicgrowth
Reinforce aseamlessnationwideplatform
Relative market share
Invest aggressivelyin our topperformers
Maintain andprotect leadershippositions in our“cash generators”
Develop businesseswith strong marketgrowth rate, but notyet in leadingpositions
Other Top 5
<10%
≥10%
Mar
ket g
row
th ra
te
• Develop a truly integrated nationwide platform: Identity and brand building Cross-selling of products and services Sharing of resources Proximity to customers
High
Low High
• Push inorganic growth Bolt-ons for existing sub-segments Acquisitions and start ups into new sub-segments
• Actively manage our portfolio1
2
3
(a) All amounts in this diagram are converted to US$ at the average 2011 exchange rate of US$1 = IDR 8,000.Source: Frost & Sullivan, management
II. 1H13 RESULTS & FY13 OUTLOOK
11
1H13 consolidated revenue results
6,781
5,177
+31%
1H13FinanceCompanies
95
Rental
221
AutoConsumer
Parts
100
2WDistribution
+ Retail
1,200
1H12
12
Elimination
% Growthfrom LY +31% +15% +88% +25%
All business units strongly outperform previous year results and are on track to realize FY2013 budget withrevenue run rate of 52%
IDR billion
12
1H13 consolidated net profit after tax results
248
182
+36%
1H13Elimination
5
MinorityInterest
8
Head Office
17
FinanceCompanies
30
Rental
17
AutoConsumer
Parts
1
2WDistribution
+ Retail
48
1H12
% Growthfrom LY +45% +1% +74% +79% +22% +34%
MPM is successfully growing all of its business units while maintaining strong profitability
IDR billion
13
Robust capital structure
MPM improved its capital structure in all fronts and is rapidly accumulating its retained earnings
1,096
1,339
1,010
1H13
10,879
4,240
3,495
+20%
Book Value of Equity
Payables
Bank Funding for SAFand MPMFinance
Mandatory ConvertibleNote
Net Debt (ST & LT Loans)(a)
0 220
1,585
2012
9,070
1,837
Cash
3,216
719
1,192
(a) ST & LT loans less cash
• Total debt levels havedecreased significantly
• Mandatory convertible notewas converted into commonshares of MPM at IPO
• Bank funding for the financecompanies receivables andpayables have increasedconsistent with the growth ofMPM’s operations
• Net debt to equity ratio notincluding funding for thefinance companies hasreduced significantly from0.4x in 2012 to 0.05x in 1H13
+33%+33%
-70%-70%
-100%-100%
+9%+9%
+22%+22%
+131%+131%
IDR billion
14
• Mulia is significantly outperforming themarket. 1H12 to 1H13 sales volume growth:
• 2W Market: 6% - Honda: 12%
• Strong performance despite headwinds:
₋ Increase in Syariah down paymentrequirement in April
₋ Increase in BBM price in June
• Units sold in the month of June reached arecord high of 81.4K motorcycles
• Total dealership increased to 40 dealers
• In 2013, MPMMotor opened 2 new dealers
Makassar Pontianak
• MPMMotor plans to open 1 dealer inPamekasan, East Java in September 2013
Outperforming the market
Motorcycle sales‘000 units +26%
448356
+17%
863(a)736
1H13 Milestones
Key Initiatives in 2H13
IDR billion +31%
1H13
5,098
1H12
3,899
Revenue+21%
FY13EFY12
8,128 9,854
IDR billion+45%
1H13
159
1H12
110
Net Profit After Tax
221
FY12 FY13E
+23%
271
(a) FY2013 Outlook
47 53
1H131H12
+13% 99
FY12
+16%
115(a)
FY13E
MPMMotor
Mulia
15
Outperforming the market(continued)
East Java is attractive and having a greatmotorcycle market because
GDP Contribution from Various Industries in East Java (a)
Agriculture
Trade, Hotel, Resto
Manufacturing
Transportation
Construction
Electricity
Finance
Mining
Services
1%
15%
27%
2%
5%
30%
5%
9%
6%
1. East Java is second largest contributortowards Indonesian economy; while GDP percapita ranked as tenth biggest compared toother provinces (a)
2. Its large size as second most populousprovince and diverse industry; in 2012 , EastJava’s economy grew at 7.3% faster thannational economy growth at 6.5% and aim7.5% in 2013 (b)
3. Honda’s market share in East Java (managedthrough Mulia) was always above Honda’smarket share nationally between 2007 and2012 (c)
(a) Source : BPS(b) Bank Indonesia – Surabaya (c) Based on police registration data
11
22
1,069
66%
25%9%
2011
989
63%
29%9%
2010
1,173
51%
40%
9%979
47%
43%
10%
2008
915
49%
37%
14%
2007
733
47%
35%
18%
20122009
YamahaOthers
Honda
33
16
• MPM completed the acquisition of the 17%minority shareholding in FKT on 10 June2013, making FKT a 100% subsidiary of MPM
• Through effective marketing, matic productsales volume in 1H13 has increased by 144%compared to 1H12
• Product portfolio shift to further emphasizethe higher growth matic segment
• Brand positioning rejuvenation
• Production plant expansion plan is movinginto feasibility study
Good Volume Growth and Efficient Operations Led toStrong Financial Performance
Total SalesVolume KL +10%
1H13
32,124
1H12
29,101
Operational Performance+16%
FY13E
65,460(a)
FY12
56,393
IDR billion+15%
1H13
756
1H12
656
Revenue
FY12
1,286
+20%
FY13E
1,537(a)
IDR billion+1%
1H13
119
1H12
118
Net Profit After Tax(b)
+8%
FY13E
218(a)
FY12
202
1H13 Milestones
Key Initiatives in 2H13
(a) FY2013 Outlook(b) Does not take into account reduction from minority interest
17
• PT Grahamitra Lestarijaya was successfullyacquired in February 2013, which added atotal of 1,830 cars as of 1H13
• PT Surya Anugerah Kencana was successfullyacquired in June 2013, which added a total of1,280 cars
• Utilization rates have remained above 92%
• Construction of driving school building isexpected to complete by end of 2013 withoperations to start on 1 April 2014
Combination of Organic and Non-organic Growthhas Accelerated MPMRent’s into the #2 Position
Total FleetSize +74%
1H13
12,104
1H12
6,955
Operational Performance
+76%
FY13E
14,066(a)
FY12
7,991
IDR billion+88%
1H13
473
1H12
252
Revenue
563
+64%
FY13E
921(a)
FY12
IDR billion
4023
1H12
+74%
1H13
Net Profit After Tax
61
+48%
FY13E
90(a)
FY12
1H13 Milestones
Key Initiatives in 2H13
(a) FY2013 Outlook
18
Acquisition of PT Grahamitra Lestarijaya &PT Surya Anugerah Kencana
• GMLJ as of 6 February 2013,had a vehicleutilization rate of 86.4%, an average long-termcontracts tenor of 1.7 years and an averagevehicle age of 3.1 years
• Fleet mix: 72% of Avanza, Xenia, & Innova
• SAK as of 31 December 2012 had a vehicleutilization rate of 90.0%, an average long-termcontracts tenor of 1.8 years and an averagevehicle age of 2.5 years
• Fleet mix: 70% of Avanza & Xenia
PT Surya Anugerah Kencana
Customer Composition by Industry %
Professional Service (Consultant) 12%Telecommunication 9%Building & Construction 8%Chemical 8%Distribution & Logistics 8%Pharmacy 8%Bank / Finance 7%FMCG 7%Manufacturing 6%Transportation 5%Others 22%
Customer Composition by Industry %
Banking & Finance 27%State Owned Company 14%Pharmacy 10%Manufacturing 10%Distribution & Logistics 6%Food & Beverages 6%Insurance 6%Others 21%
PT Grahamitra Lestarijaya
19
• Total network grew from 45 branches and 87outlets in 1H12 to 47 branches, 8 salesoffices and 85 outlets in 1H13
• # of new accounts increased from 21,163 in1H12 to 30,385 in 1H13
• Weighted average Interest rates on newbookings has decreased from 20.0% in 1H12to 18.8% in 1H13
• The loan portfolio growth has increased NPLratio > 90 days from 1.8% in 1H12 to 2.2% in1H13
• Increase collection efforts to reduce NPLratio to below 2.0%
• To increase network to 50 branches, 14 salesoffices and 100 outlets
Strong Performance Underlined by Growth inNew Bookings
New BookingIDR billion +2%
1H13
1,167
1H12
1,139
Operational Performance
+12%
FY13E
2,552(a)
FY12
2,286
IDR billion+23%
1H13
327
1H12
266
Revenue
+26%
FY13EFY12
694(a)549
IDR Billion
4941+20%
1H12 1H13
Net Profit After Tax
FY13EFY12
100 114(a)
+14%
1H13 Milestones
Key Initiatives in 2H13
(a) FY2013 Outlook
20
• SAF has successfully turned around from anet loss into a profitable company
• # of new accounts increased from 31,314 in1H12 to 48,255 in 1H13
• Weighted average Interest rates on newbookings has increased from 24.2% in 1H12to 33.1% in 1H13
• NPL ratio > 90 days has decreasedsignificantly from 3.2% in 1H12 to 1.7% in1H13
• Target to open 14 new Point of Sales , 10 inEast Java and 4 in greater Jakarta
• Maintain NPL ratio > 90 days at 1.7 % in2H13
New BookingIDR billion +58%
1H13
479
1H12
304
Operational Performance+91%
FY13E
1,056(a)
FY12
552
IDR billion+24%
1H13
143
1H12
115
Revenue
+82%
FY13E
327(a)
FY12
180
IDR billion
17
-3
1H12
+567%
1H13
Net Profit After Tax
-6
31(a)
FY12
+650%
FY13E
1H13 Milestones
Key Initiatives in 2H13
A Successful Turnaround from 2012
(a) FY2013 Outlook
FY2013 Outlook
21
Key metrics FY11 FY12 FY13 CAGR
Profit & Loss (IDR billion)
Net revenue 8,453 10,777 13,281 25.4%
Gross profit 875 1,618 2,080 54.2%
GP margin 10.3% 15.0% 15.7%
Net profit fromcontinuingoperations
266 405 567 46.0%
NP margin 3.2% 3.8% 4.3%
Net profit afterminority interest 220 374 540 56.7%
Balance sheet (IDR billion)
Cash 166 1,192 726
ST & LT loans 219 1,911 1,905
MCNs(a) - 1,010 -
Bank funding for SAFand MPMFinance(b) 836 3,216 3,427
Book value of equity 903 1,837 4,580
• FY2013 outlook has been revisedupward due to strong 1H13performance and momentum
• Gross profit and net profit margincontinues to improve due to strongercontribution from higher marginbusinesses units (automobileconsumer goods, rental, and financeunits)
• Despite the Company’s rapid growthover the last two years, MPM’s netdebt level(c) is still at a comfortablelevel of IDR1,179 billion (US$118million) as of end of FY13
- This implies net debt to equityratio of approximately 0.3x
(a) MCNs had been converted into common shares of MPM at IPO(b) Only commenced consolidation of MPMFinance borrowings in FY12 onwards(c) ST & LT loans less cash
Disclaimer
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• These materials have been prepared by PT Mitra Pinasthika Mustika Tbk (the “Company”, “MPM”) and have not beenindependently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed onthe accuracy, fairness or completeness of the information presented or contained in these materials. The Company or anyof its affiliates, advisers or representatives accepts no liability whatsoever for any loss howsoever arising from anyinformation presented or contained in these materials. The information presented or contained in these materials is subjectto change without notice and its accuracy is not guaranteed.
• These materials may contain statements that constitute forward-looking statements. These statements include descriptionsregarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results ofoperations 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 statementsare not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those inthe forward-looking statements as a result of various factors and assumptions. The Company has no obligation and doesnot 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 ofany offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form thebasis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Anydecision to purchase or subscribe for any securities of the Company should be made after seeking appropriate professionaladvice.
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