1H17
MPM Company Highlights
and Financial Results
(Ticker: MPMX)
2
MPM: FROM PIPELINE TO PLATFORM BUSINESS
OUR
CREDO
Progressive Thinking
Active Ownership
Collaboration
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
3
TABLE OF CONTENT
01
MPM: Company Highlights
02
Consolidated Financial Results: 1H 17 Updates
4
MPM IN A SNAPSHOT: LEADING SMART MOBILITY COMPANY IN INDONESIA
•
Est. in 1987 by W. Soeryadjaya as
2W distribution business for Honda
•
Expertise and leading market
positions in consumer automotive
(2W & 4W) supply chain and value
chain
•
Recognized by industry as 2016
Top 50 Best Company in Indonesia
(Forbes) and other various awards
Market expertise
With 30 year of experience
•
BOC & BOD has over 100 years of
management and governance with
industry experts, independent
commissioners, and professionals
in place
•
Listed in IDX (Ticker: MPMX) in
2013, raising Rp 1.5T from public
(22% enlarged TSO)
•
Total Equity @ Rp 5.1T with cash
balance @ Rp
1.3T (June ’17)*
Strong Corporate
Governance & Financials
•
4 main business segments, each with
growth potential
•
Network and presence across
archipelago serving 10MM+ individual
customers, 1,000+ corporate clients,
and 10,000+ 3
rdparty channels
•
8,000+ employees with high
performance culture
Significant Growth
Potentials
5
MPM BUSINESS: COLLECTIVE POWER
Rp 17.7T
FY16 Revenue
77%
10%
6%
7%
Distribution & Retail
•
2W Honda distribution in E. Java + NTT
with 290 dealer relationships, serving
~4.2MM active customers
•
2W Honda 3S dealerships with 40
outlets across Indonesia
•
4W Nissan & Datsun 3S dealerships
with 5 outlets across Indonesia
Consumer Parts
•
2W & 4W engine lubricant principal &
parts distribution company
•
3,300+ Federal Oil Centers & 10,000+ 3
rdparty workshops nationwide, serving
10MM+ customers per year
Auto Services
•
Independent 4W rental/lease company
with 13K+ fleet, serving 1,000+
corporates
•
Fleet & logistic management services
Financial Services
•
Independent 2W, 4W, lease financing
business with 87 outlets nationwide,
serving 135K+ customers
•
Non-life general insurance including
2W, 4W, cargo, & property with 22
offices & 6 service points nationwide
6
GOVERNANCE AND MANAGEMENT
48.6%
15.3%
6.8%
29.3%
PT Saratoga Investama Sedaya Tbk
Morninglight Investment S.a.r.l
Claris Investment Pte. Ltd.
Public & Others
Board of Commissioners
Strong mix of operational, strategy, M&A, and governance
expertise
Board of Directors
Over 100 years of combined professional experience
Rudy Halim
Group CEO
Troy Parwata
Group CFO
Agung Kusumo
Managing Director
Titien Supeno
HR Director Andi Esfandiari Director
Edwin Soeryadjaya
Chairman
Tossin Himawan
Commissioner
Danny Walla
Commissioner
Lee Chul Joo
Commissioner
Istama Siddharta
Independent Commissioner
Simon Halim
Independent Commissioner
Shareholding
7
MPM GROUP NETWORK: PRESENCE ACROSS INDONESIA
Resource: MPMX, as of 30 Jun 2017
22 MPMInsurance Offices & Outlets
47 FKT Distributors for Federal Oil & Federal Mobil
30 MPMRent Offices & Service Points
5 MPMAuto Dealers
87 MPMFinance Offices & Outlets
40 MPMotor Retail Outlets
8
TABLE OF CONTENT
01
MPM: Company Highlights
02
Consolidated Financial Results: 1H17 Updates
9
1H17 REVENUES: SEGMENT CONTRIBUTION & MOVEMENT
Revenues 1H17
Rp 7.7T
9.9% QoQ, -7.7% YoY
80%
11%
8%
1%
-10% -4% +19% +38%
-7.7%
(777) (40) 106 24 46
%YoY
1H16 1H17
7,708 8,349
YoY revenue growth
Distribution & Retail Consumer Parts Auto Services *Financial Services Elimination
Revenues Growth % YOY, in Rp billion
Summary
Total Revenue was impacted by s
horter working period during Lebaran holidays.
Sales from 2W distribution was affected by slow harvest condition in East Java while consumer cautious spending affected
Consumer Parts sales.
Higher revenue in Auto Services was driven by stable rental business and higher disposal value of used cars.
Financial Services continues to deliver strong performance.
10
%YOY -17% -14% +114% +51% +79%
(18) (21)
13 10
38
180 1H16
1H17 323 141
+9,950% +136%
YoY NPATMI growth
1H17 NPATMI: SEGMENT CONTRIBUTION & MOVEMENT
*8% 10%
41% 41%
0% 10% 20% 30% 40% 50% Financial Services
Auto Services Consumer Parts Distribution & Retail
Rp 323B
50.6% QoQ, 79.5% YoY
NPATMI 1H17
Distribution & Retail Consumer Parts Auto Services **Financial Services
Discontinued Operation Head Office
NPATMI Growth % YOY, in Rp billion
Summary
NPATMI strong growth is driven by overall improvement of operational efficiency and one-off gain of MPM
Finance
divestment.
Higher operational efficiency contributed to the significant increase of profitability in Auto Services.
Improved asset quality and strong business growth drove the solid profitability in Financial Services.
The profitability in Distribution & Retail and Consumer Parts were impacted by the lower sales.
-226% (20)
Minority Interest
*Includes Discontinued Operation (MPMFinance) 7% and MPMInsurance 1%
11
1H17 Financial Highlights
Summary
Gross margin, EBITDA margin and Net margin all increased compared to the same period last year.
CAPEX spending continues to come down, in line with the key focus of 2017.
Strong balance sheet with healthy Net Debt/Equity ratio.
ROE, ROA and FCCR ratio have improved significantly.
* Annualized figure
Net Debt/EBITDA*
Net Debt/Equity
ROE*
Key Ratios
P&L Highlights
Net Revenues
Gross Profit
NPATMI
Total Asset
Bank Funding
Bonds
12
MPM
Finance
Divestment and Deconsolidation Impact
* Annualized figure
Without MPMF Divestment (Estimated)
1H17 Income statement (in Rp T)
Revenue
EBITDA
NPAT
NPATMI
1H17 Balance sheet (in Rp T)
Assets
Liabilities
Equity
Net Debt
Key ratios
EBITDA margin
NPAT margin
ROA*
ROE*
Net Debt to Equity
Net Debt to EBITDA*
After MPMF Divestment (Actual)
1H17 Income statement (in Rp T)
Revenue
1H17 Balance sheet (in Rp T)
Assets
Key ratios
EBITDA margin
NPAT margin
ROA*
ROE*
Net Debt to Equity
Net Debt to EBITDA*
13
KEY FOCUS 2017: (1) COST LEADERSHIP
Financial Highlights (in Rp billion)
Summary
Major OPEX items: C&B, A&P, T&S, have decreased YoY in line with the key focus of 2017.
Provision was driven by MPM
Rent
as a result of the introduction of prudent accounting management.
Continue monitoring Revenue per headcount as part of the key focus of 2017.
Revenue / HC
Total Opex
•
Compensation & Benefit
•
Advertising & Promotion
•
Transportation & Storage
14
KEY FOCUS 2017: (2) OPERATING CASH FLOW
AR Days
AP Days
Inventory Days
1H17
Operational Highlights
Summary
Keep up the momentum of producing positive cash
flow.
CF from Investing grow significantly due to the
proceeds from MPMF divestment.
CF from Financing decreased significantly due to the
effect of centralized treasury center.
Continue to monitor Cash Conversion Cycle.
1H17 Cash Flow (in Rp billion)
* Net off with the Beginning balance of Disc. Operation. Beg. Balance of Disc. Op.
Adj. Beg. Balance*
CF from Operating
CF from Investing
15
KEY FOCUS 2017: (3) COLLABORATIVE ECONOMY & NEW GROWTH
Collaborative Economy- ACE Performance
Improving cross-selling and up-selling between
operating companies, aligned with the Accelerated
Collaborative Economy initiatives.
New Growth-MPM Planet-The Power of Network Effects
Rally Point App is the
window
to our MPM planet.
Stretch Dollar is key to the value proposition of MPM planet.
16
2Q17 KEY EVENTS
FKT was
recognized by the HR Asia Award as HR Asia Best Companies to work for in Asia 2017
Apr’17
MPMInsurance
awarded 1st for Best General Insurance Award for companies with Rp 150-250 billion equity by Media Asuransi
May
’17
FKT received Superbrands 2017 award for category Automotive Lubricants
Jun’17
Jun’17
MPMulia launched All New Honda Brands 2017 with a US$ 181 mio Brand Value & A Brand Rating from SWA Magazine
MPM Group named Top 5 Best at Investor Relations by FinanceAsia
Jul’17
Jul’17
17
TABLE OF CONTENT
01
MPM: Company Highlights
02
Consolidated Financial Results: 1H 17 Updates
18
1H16 1H17 Sales Volume (Unit in thousands, YoY%)
902 912 863
FY15 FY16 TTM
-5%
Revenue (in Billions of Rupiah, YoY%)
+1%
261 338 330
FY15 FY16 TTM
+30%
Mulia
129 132 131
FY15 FY16 TTM +2%
MSO
FY15 FY16 TTM
14,459 13,961
NPAT (in Billions of Rupiah, YoY%) 1H17 Highlights
o Lower sales volume was driven by slow harvest, increase in
vehicle registrations and earlier Lebaran break.
o NPAT fell marginally in line with lower revenue for the period
Key Initiatives
o Launch of 6 new models and revamped 11 models during 2017.
o Increase in promotional activities to consumer, dealers and
financing companies.
o Built the third warehouse to lower rental costs and optimize
distribution.
2W DISTRIBUTION & RETAIL :
CONTINUE LEADERSHIP IN E. JAVA AND NTT
19
-85
-102 -96
4W DEALERSHIP :
IMPROVE SALES PRODUCTIVITY & SERVICE LEVEL
Sales Volume (Units, YoY%) 1H17 Highlights
o Intense competition in the 4W market and the decline in
market attractiveness of Nissan and Datsun brand from
lack of new products contributed to the fall in sales.
o Number of dealerships is also lower as compared to last
year due to scaling down of operations.
Key Initiatives
o Focus on operational efficiency and sales productivity as
well as after-sales service quality to the customers.
FY15 FY16 TTM
-43%
NPAT (in Billions of Rupiah, YoY%) Revenue (in Billions of Rupiah, YoY%)
FY15 FY16 TTM
FY15 FY16 TTM
773
20
1H16 1H17
-6%
CONSUMER PARTS:
STRENGTHEN CHANNEL & NEW PRODUCT DEVELOPMENT
o Shorter working days in June impacted the sales volume.
o Gross margin remain stable though revenue was slightly lower.
o NPAT was lower due to the lower revenue and less finance
income.
Key Initiatives
o Federal Oil (2W)
o Strengthen channel development
o Increase product quality
o Federal Mobil (4W)
o Focus on market growth outside of Jakarta and Surabaya
o Improve B2B channels
Sales Volume (Units in thousand litres, YoY%)
FY15 FY16 TTM
+7%
260 9,823
NPAT (in Billions of Rupiah, YoY%) Revenue (in Billions of Rupiah, YoY%)
-3%
FY15 FY16 TTM
1,675 1,629
1,582
-3%
59,200 63,341 61,297
-7%
1H17 Highlights
1H16 1H17
FY15 1H16 1H17
-12%
21
+103%
1 15
-33 1H17 Highlights
AUTO SERVICES:
MAINTAIN OPERATIONAL EXCELLENCE & CASH FLOW
o Higher revenue was driven by stable rental business and higher
disposal value of used cars.
o Higher NPAT driven by OPEX efficiencies and finance cost saving.
Key Initiatives
o Continuous improvement on operational efficiency and
productivity of the fleet.
o Improve the portfolio of corporate clients, including new offerings
to customers.
Fleet Size (Units, YoY%)
FY15 FY16 TTM
+1%
260
NPAT (in Billions of Rupiah, YoY%) Revenue (in Billions of Rupiah, YoY%)
-6%
FY15 FY16 TTM
22
31 41 51
FY15 FY16 TTM FY15 FY16 TTM
385 393
259
41 42
1H17 Highlights
MPM
INSURANCE
:
INCREASE PENETRATION GROUP & NON-GROUP BUSINESSES
Gross Premium (in Billions of Rupiah, YoY%)
+49%
31
9,823
NPAT (in Billions of Rupiah, YoY%)
+2%
+32% +24%
204
212
1H16 1H17
20 30
1H16 1H17
+51% +4%
o Gross premium grew steadily driven by increase in new policies especially for the MV segment.
o NPAT increased in 1H17 primarily due to higher
underwriting and investment income.
Key Initiatives
o Increase market penetration in MPM Group business as well as non-affiliated businesses.
o Plans to increase network penetration via opening up new branches (Pontianak and Lampung).
23
1H17 Highlights
1,185
SELECTIVE GROWTH WHILE MAINTAINING FOCUS ON ASSET QUALITY
o Asset quality improved YoY basis as reflected by NPL level.
o New Booking growth was driven by new 4W financing through strengthening relationship with various dealers.
o Increased NPAT was due to higher gross profit and improved
asset quality.
New Booking (in Billions of Rupiah, YoY%)
FY15 FY16 TTM +37%
9,823
NPAT (in Billions of Rupiah, YoY%) Revenue (in Billions of Rupiah, YoY%)
+18%
2,934 4,015
4,728
Key Initiatives
o Continuously monitor and manage asset quality by implementing
early warning system across network.
o Diversify and optimize source of funding to ensure competitive pricing.
24
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
