2016.11.01 MPMX 9th dbAccess Conference

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9 th

_{dbAccess Indonesia}

Conference 2016

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KEY MESSAGES

MPM Updates

Leading End-to-End Consumer Automotive Company in Indonesia

1H16 Business Segments Performance

Positive Growth in all Business Segments

1H16 Summary

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Founded by William

Soeryadjaya as 2W

distribution business

for Honda

Listed in IDX

(Code: MPMX),

appointed Nissan

Datsun dealership

2W development:

retail, parts, finance

Entered 4W business

rental & finance,

established insurance

Leading consumer

automotive company

in Indonesia

4

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MPM BUSINESS:

3,9M+

active 2W

customers,

~4,000

4W sale 9M16

3,300+

2W FO Centers

15,000+

retailers,

~20%

market share 2W lube

(

#1

aftermarket)

1,300+

Corporate clients

14K

fleet size (

#3 largest

)

159K+

finance & lease

customers,

125K+

insurance clients

DISTRIBUTION & RETAIL

AUTO CONSUMER PARTS

AUTO SERVICES

FINANCIAL SERVICES

2W lubricant principal 35 distributors nationwide

4W lubricants since 2015 1,000+ workshops lease financing business

99 outlets nationwide

Non-life insurance including 2W, 4W, cargo,

& property 16 offices & 4 service

points nationwide 2W Honda distribution in E.

Java + E. Nusa Tenggara 289 dealer relationships

2W Honda retail dealers with 40 outlets nationwide

N/A

4W Nissan & Datsun nationwide dealership

10 dealers since 2014

Data as of 9M16

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5% 52% 46%

-3%

1%

5% 46%

48%

SEGMENT CONTRIBUTION

Revenues 1H15

IDR 8.2T

Revenues 1H16

IDR 8.9T

NPATMI 1H15

IDR 233B

NPATMI 1H16

IDR 180B

Distribution & Retail

Auto Consumer Parts

Auto Services

Financial Services

7%

6%

10%

77%

+9%/+14%

YoY / QoQ

1) Non Financial Services : Mulia, MPMMotor, FKT, PMP, MPMAuto, MPMMobil, MPMRent, Grahamitra, DSS & SAK 2) Financial Services : MPMFinance & MPMInsurance

+4%

YoY

7%

9%

77%

5 -23%/+52%

YoY / QoQ

-18%

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1H16 CONSOLIDATED REVENUE RESULTS

% Growth

from LY

+10%

+30%

-5%

-2%

Distribution

& Retail

Auto Consumer

Parts

Auto Services

Financial

Services

Elimination

8,181

1H15

1H16

8,883

+9%

IDR B, YoY

₇₀₂

₂₂₄

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(12)

(185)

IDR B, QoQ

+14%

17%

+9%

+5%

+6%

585

44

14

19 (66)

4,143

Q1-16

Q2-16

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1H16 CONSOLIDATED NPATMI RESULTS

IDR B, YoY

% Growth

from LY

-7%

-41%

-26%

Distribution

& Retail

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10 (8)

(8)

1H16

(42)

233 1H15

Auto

Consumer

Parts

Auto

Services

Financial

Services

-23%

+52%

-69%

+25%

Elimination

Head

Office

Minority

Interest

180

3

7

72 Q2-16

108 % Growth

from Q1-16

IDR B, QoQ

+31%

+21%

+29%

+216%

+0%

-263%

15

14

1

11 (5)

Q1-16

0

(8)

1,484

445 (406)

217 1,739

1,422

309 (246)

(92)

1,393

1H16 CONSOLIDATED CASH FLOW POSITION

Rp Billions

Operating

activities

Investing

activities

Financing

activities

Operating

activities

Beginning

Balance

Ending

Balance

1H16

1H15

Operating

cash inflow

increases

+44%

Investing cash

outflow

increases

+65%.

Cash inflow

from

financing

activities

increases by

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PT Saratoga Investama Sedaya

Tbk and Affiliates

Morninglight Investments S.a.r.l

Claris Investment Pte. Ltd.

Public & Others

Shareholder Composition as of 30 June 2016

GOVERNANCE AND MANAGEMENT

BOARD OF COMMISSIONERS

BOARD OF DIRECTORS

BoC brings strong mix of operational, strategy, M&A,

and governance expertise

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2016 YTD KEY EVENTS

MPM

Finance

won the Best

Structured Trade Finance Solution

Indonesia at The Asset Triple A

Awards 2016 held by The Asset in

Hong Kong

May 16

_{Jun 16}

MPM

Insurance

awarded The Best

General Insurance 2016 from

Infobank magazine for category of

gross premium below IDR 250 bio

MPMInsurance awarded The Best Financial Performance General Insurance 2016 from Warta Ekonomi magazine for category of company asset

between IDR 400 - 600 bio

Sep

1

6 FKT received 2 Best Brand Awards for

The Best W

Matic

Lu ri a t a d

The Best W Lu ri a t

Sep 16

Jun 16

Mulia launched Honda BigBike 500 series CBR 500R & CB 500F in Surabaya

MPM Group listed as one of 50 Best Companies by Forbes Indonesia

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USD SENIOR NOTES HEDGING COVERAGE

–

ORIGINAL & TOP UP

Rp 12,000

Rp 14,000

Rp 15,000

Rp 16,000

USD Spot Rate

@ Market Spot Rate

@ Rp 12,000

Original Coverage

Settlement

@ Rp 2,000 subsidy

–

(Spot Rate

–

Rp 15,000)

@ Rp 2,000 subsidy

@ Rp 1,000 subsidy

Ave. Premium

Coverage

Participants

2.18%

Principal @ maturity (Sep 2019)

Coupon up to 2017

Deutsche Bank, Morgan Stanley, ANZ, MUFG

Top-Up Coverage

Settlement

@ Market Spot Rate

Back to original cover

@ Rp 14,000

0.73% p.a.

Principal @ maturity (Sep 2019)

Deutsche Bank, Morgan Stanley

+

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KEY MESSAGES

MPM Updates

Leading End-to-End Consumer Automotive Company in Indonesia

Company Updates

Continued scale building and growth across all business segments

Company Updates

Continued scale building and growth across all business segments

1H16 Business Segments Performance

Positive Growth in all Business Segments

1H16 Summary

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2W DISTRIBUTION & RETAIL:

CONTINUE LEADERSHIP IN E. JAVA AND NTT

972 902 903

FY14

FY15

1H16 LTM

+0%

-7%

Sales Volume

(000 units, YoY%)

293

• 2W sales volume in YTD 2016 is showing stable growth vs national sales of -5% in 1H16 relative to 1H15.

• Lebaran festive was positive contributing factor to the 2W sales.

• Higher actual revenue than last year due to sales volume growth and increase in sales price in 2016, as well as the increase contribution comes from sports type.

• Higher YTD NPAT compared to June 2015 is driven by positive gross profit growth paired with lower interest expenses from dealers financing

• Launching of new scooter & sport motorcycles

• Ramping-up sales promotion activities to consumer, dealers, and financing companies

• Improve cost efficiency by relocating outsourced labor

• Finalizing third warehouse construction to lower rental costs

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1H15

1H16

4W DEALERSHIP:

IMPROVE SALES PRODUCTIVITY & SERVICE LEVEL

-14

-85

FY14

FY15

2Q16 LTM

-102

Sales Volume

(Car Units, YoY%)

NPAT

(IDR B, YoY%)

• Higher sales volume as of June 2016 relative to last year due the increase in sales productivity and scaling-up of operations (currently 11 dealers for new cars).

• Lower YTD NPAT as of June 2016 compared to 2015 due to higher opex because of the scaling-up of the operations and addtional interest expense which is realized after the contruction of the new dealer is completed.

+166%

+32%

FY15

1H16 LTM

Key Initiatives

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CONSUMER PARTS:

STRENGTHEN CHANNEL & NEW PRODUCT DEVELOPMENT

FY14

FY15

1H16 LTM

• Higher sales volume as of YTD June 2016 compared to YTD June 2015 due to sales volume increase in the majority of sales categories, including:

 Non Matic and Matic 2W segment.  4W new segment

• The revenue increase as of YTD June 2016 is in line with the increment from sales volume as mentioned above.

• Higher NPAT as of June 2016 compare to last year mainly due to the stable COGS.

63,172

Federal Oil (2W)

• Strengthen channel development

• Increase product quality

Federal Mobil (4W)

• Focusing on market growth outside Jakarta and Surabaya

• Improve B2B channels

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AUTO SERVICES:

MAINTAIN OPERATIONAL EXCELLENCE & CASH FLOW

20 but recovers from FY15.

• Stable utilization rate of around 90%.

• Lower revenue as of June 2016 compared to last year because of the decrease in car rental revenue which is mainly driven by smaller fleet size.

• Lower NPAT as of June 2016 than last year due primarily to slightly higher maintenance costs.

• Cash balance of Rp437B at the end of June 16.

-1%

-2%

-27%

Key Initiatives

• Improving operational efficiency and productivity

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1H15

1H16

MPM

FINANCE

:

SELECTIVE GROWTH WHILE MAINTAINING FOCUS ON ASSET QUALITY

4,093

• Higher new bookings as of June 2016 compared to last year with early re-monitoring system which focus on the assets quality.

• Lower NPAT as of June 2016 compared to last year due to higher provision for doubtful accounts (the introduction of automatic 4W provisioning in January 2016).

• NPL 90+:

2.9%

3.2%

3.1%

3.3%

3.2%

Jun'15 Sep'15 Dec'15 Mar'16 Jun'16

+7%

-3%

-44%

Key Initiatives

• Continuously monitoring and managing asset quality by and implementing early warning system across the network

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MPM

INSURANCE

:

INCREASE PENETRATION GROUP & NON-GROUP BUSINESSES

Gross Premium

(IDR B, YoY%)

31 34

FY14

FY15

1H16 LTM

+95%

NPAT

(IDR B, YoY%)

1H16 Highlights

204

1H15

1H16

108

• Gross premium as of June 2016 is higher than last year due to growth in most premium categories including MV, Fire, Marine Cargo and Others (engineering business) categories.

• Higher NPAT as of June 2016 than last year mainly due to higher net underwriting income and net investment income.

259

16

+37%

Key Initiatives

• Increasing market penetration in MPM Group businesses as well as non-group businesses.

+75%

259

FY14

FY15

1H16 LTM

+96%

148

20

1H15

1H16

16

+88%

+26%

354

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KEY MESSAGES

MPM Updates

Leading End-to-End Consumer Automotive Company in Indonesia

1Q14 Summary & Business Segments Performance

Stable 2W business despite natural disasters, Strong 4W business growth

1Q14 Summary & Business Segments Performance

Stable 2W business despite natural disasters, Strong 4W business growth

1H16 Business Segments Performance

Positive Growth in all Business Segments

1H16 Summary

+9% YoY Revenue Growth & -23% YoY / +52% QoQ NPATMI Growth

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KEY METRICS - CONSOLIDATED

distribution, consumer parts business, and insurance business.

• Gross profit margin in 1H16 is higher compared to FY15 and is comparable relative to 1H15.

• Moderate increase in opex excluding provision from 1H15 to 1H16.

• Higher provision than last year since the financial services business has introduced automatic 4W provisioning starting in Q1-16.

• On a YoY consolidated basis, lower operating profitability in 1H16 is mainly driven by the

Profit & Loss (IDR Billion)

Net Revenue 16,640 8,883 8,181 8.6% 4,739 4,143 14.4% Gross Profit 2,299 1,265 1,168 8.3% 664 601 10.5%

GP Margins 13.8% 14.2% 14.3% 14.0% 14.5%

Operating Expenses Without Provision (1,444) (735) (661) -11.2% (377) (357) -5.6%

EBITDA Margin 7.0% 6.8% 8.0% 7.1% 6.5%

Balance Sheet (IDR Billion)

Net Debt/Equity 1.1x 1.0x 1.1x -7.7% 1.0x 0.9x 2.1%

ROA *) 2.1% 2.5% 3.4% -26.5% 3.0% 2.0% 50.6%

Net Debt/EBITDA *) 4.8x 4.5x 4.4x 2.4% 4.0x 4.9x -17.3%

FCCR 3.6x 3.5x 4.5x -21.4% 3.4x 3.6x -6.2%

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KEY METRICS

–

NON FINANCIAL SERVICES

*) For 1H16 & 1H15 using Annualized

21 1H16 Highlights

• The YoY growth in net revenue and gross profit is mainly due to the performance of our 2W distribution and consumer parts business.

• Moderate increase in opex excluding provision from 1H15 to 1H16.

• On a YoY, lower operating profitability in 1H16 is mainly driven by higher opex and lower other income which is the result of exchange rate fluctuations.

KEY METRICS

FY15 1H16 1H15 YoY (%) 2Q16 1Q16 QoQ (%)

Net Revenue 15,471 8,307 7,591 9.4% 4,443 3,864 15.0% Gross Profit 1,581 910 799 13.9% 484 427 13.3%

GP Margins 10.2% 11.0% 10.5% 10.9% 11.0%

Operating Expenses Without Provision (1,004) (543) (433) -25.4% (286) (257) -11.3%

EBITDA Margin 7.1% 7.1% 8.2% 7.3% 6.9%

ROA *) 2.6% 3.4% 4.7% -27.4% 4.0% 2.9% 39.3%

FCCR 3.4x 3.4x 4.2x -19.2% 3.3x 3.6x -10.0%

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KEY METRICS

–

FINANCIAL SERVICES

22 1H16 Highlights

• Smaller growth of net revenue and gross profit mainly due to our selective consumer financing business action in order to grow more healthy portfolio of assets.

• Decrease in opex excluding provision from 1H15 to 1H16.

• YoY provision is higher since we have put in place automatic 4W provisioning in our financing business in Q1-16.

• On a YoY, lower operating profitability in 1H16 is mainly driven by the introduction of the automatic provisioning.

• There has been an improvement in our cash position in 1H16 relative to FY15 due to the have been issued MTNs in 1H16.

KEY METRICS

FY15 1H16 1H15 YoY (%) 2Q16 1Q16 QoQ (%)

Net Revenue 1,209 600 611 -1.8% 309 291 6.4% Gross Profit 745 373 383 -2.6% 190 183 4.0%

GP Margins 61.6% 62.2% 62.6% 61.5% 62.9%

Operating Expenses Without Provision (472) (212) (245) 13.5% (101) (110) 8.2%

EBITDA Margin 5.5% 2.7% 5.7% 4.9% 0.3%

ROA *) 0.9% 0.7% 0.9% -26.4% 1.1% 0.3% 297.5%

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