Earning Slide 31 Oct 2013..

Indonesia’s Most Preferred Department Store 1

Matahari Department Store

Earnings call: October 31, 2013



Key Highlights



Business Update



Financial Update

Indonesia’s Most Preferred Department Store 3

•

Consumer demand remains strong despite changes in the macroeconomic

environment

•

Opened 5 new stores in the period, with an additional store opening on 17 October,

giving a total of 6 new stores or 122 stores in total

•

3 additional stores are planned to open by year end, giving a total of 125 stores

•

Total gross sales were up 16.9% YTD

•

Delivered a 9% comp store growth in Q3, bringing the year to date total comp store

growth to 11.7%, beating last years comp store growth for the same period, and our

internal plans

•

YTD net income is up 42.8% YTD

Indonesia’s Most Preferred Department Store 5

•

Total gross sales Rp9,633 Bn, 16.9% over 2012

•

Merchandise gross margin improved 10 bps over 2012

•

Despite known cost pressures, expenses came in under plan

•

Adjusted EBITDA exceeded last year by 12.0%, beating our internal plan

•

Net Income increased 42.8% to Rp 900 Bn

7

8,241

9,633

9M'12

9M'13

IDR Bn

Gross Sales

SSSG 11.7%

1,431

1,603

9M'12

9M'13

IDR Bn

Adjusted EBITDA

Adjusted EBITDA Margin

16.6% 630 900 9M'12 9M'13 IDR Bn

Net Income

7.6%

Net Income Margin

9.3%

10.8%

Financial Snapshot YTD September 2013

Private label brands continue to deliver strong performance

DP increases mix of business by 270 bps YTD September 2013, as compared to FY2012

% of Gross Sales

DP

29.1%

CV

70.9%

DP

29.0%

CV

71.0%

FY12

CV

68.2%

DP

31.8%

9 9

122 stores in 59 cities across Indonesia

East Java

16 stores (9 cities)

(1 new store) Sumatra

19 stores (10 cities)

(1 new store)

Kalimantan, Bali and East Indonesia

25 stores (14 cities)

(2 new stores)

Up to Oct 2013 (1)

West Java

11 stores (7 cities)

Greater Jakarta

35 stores (11 cities)

(2 new stores)

Central Java

16 stores (8 cities)

6 new stores opened year-to-date

MDS Store Overview

No. of Stores

As of 31 Dec 2012 116

Added up to Sep 2013 5

Total at Sep 2013 121

Added in Oct 2013 1

Store pipeline continues to grow

# of stores

% mix

# of stores

% mix

# of stores

% mix

1

Jabodetabek (Greater Jakarta)

33

28.5%

34

28.1%

15

20.0%

2

Java (Exc Greater Jakarta)

42

36.2%

43

35.5%

23

30.7%

3

Outside Java

41

35.3%

44

36.4%

37

49.3%

Total

116

100.0%

121

100.0%

75

100.0%

As at 31 Dec 2012

Future Pipeline 2013-2015

Geographic area

Indonesia’s Most Preferred Department Store 11

Strong sales growth

IDR Bn

Q3 delivered a 14.1% sales growth, YTD growth is 16.9%

9,247

10,884

3,921

4,473

Q3

YTD September

8,241

13 13

Strong SSSG

SSSG %

Healthy Q3 SSSG maintains a double digit increase YTD

13.6%

11.1%

2011 2012

9.1%

9.0%

Q3'12

Q3'13

Average 12.4%

10.8%

11.7%

9M'12

9M'13

Adjusted Opex

(1)

as a % of Gross Sales

Expense pressures continue, driven by minimum wage

and electricity increases

16.5%

17.3%

17.7%

15 15

Adjusted EBITDA and Margins

IDR Bn

YTD EBITDA grew by 12.0% YTD, equivalent to 16.6% sales

1,431

1,603

9M'12

9M'13

1,479

1,819

2011

2012

816

884

Q3'12

Q3'13

Q3

YTD September

Adjusted EBITDA as a % of Gross Sales

Net Profit and Margins

YTD net profit increased 42.8% over 2012

IDR Bn

466

771

630

900

473

635

5.0%

7.1%

12.1%

7.6% 14.2%

9.3%

17 17

Total Debt and Interest Expense



Total debt as at 30

th

September 2013 is Rp1.9 T,

following Rp1.1 T in repayment through 30

September



In line with guidance given, management plans

on additional voluntary prepayments during Q4



Effective interest rate declined from 12.5% in

9M‘12 to 11.4% in 9M’13, driven by the

refinancing in 2012



The interest rate going forwards is JIBOR +

4.75%

Commentary

Notes

1. 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 2. Total debt comprises of the bank loan, revolving facility, less anamortized upfront fee

2,959 1,888 2012 Sep'13 325 211 9M'12 9M'13

Total Debt

Interest expense

Sales Growth and SSSG by region

–

YTD September 2013

Geographic Area

Stores as at

Sep 2013

Store Mix

% to Total

Sales

(IDR Bn)

Total Sales

% growth YTD

SSSG%

Q3

SSSG%

YTD Sep

Greater Jakarta

34

28.1

2,876.2

15.1

9.2

12.3

Java exclude Greater

Jakarta

43

35.5

3,180.5

19.4

11.5

14.9

Outside Java

44

36.4

3,576.2

16.2.

6.3

8.2

19

9M 2012 Q1. 2013 Q2 2013 Q3 2013 9M2013

Gross Sales 8,240.9 2,372.4 2,787.2 4,479.4 9,633.0

SSSG 10.8% 13.2% 14.9% 9.0% 11.7%

Growth 17.3% 18.3% 20.4% 14.1% 16.9%

Net Revenue 4,251.0 1,257.2 1,483.7 2,367.3 5,108.3

Growth 18.4% 21.6% 24.4% 16.9% 20.2%

Adjusted Gross Profit 2,790.1 794.0 959.8 1,519.2 3,272.9

Margin 33.9% 33.5% 34.4% 34.0% 34.0%

Adjusted EBITDAR 1,950.0 486.0 617.5 1,106.5 2,210.1

Margin 23.7% 20.5% 22.2% 24.7% 22.9%

Adjusted EBITDA 1430.9 296.7 422.0 884.3 1,603.1

Margin 17.3% 12.5% 15.1% 19.8% 16.6%

Profit before tax 943.6 138.1 274.5 767.5 1,180.1

Margin 11.4% 5.8% 9.9% 17.2% 12.3%

Net Profit 629.9 82.2 182.7 634.6 899.5

Margin 7.6% 3.5% 6.6% 14.2% 9.3%

growth 77.1% 82.8% 62.4% 34.3% 42.8%

IDR Bn

Key Profit & Loss Items



Results in Q3 continue to show strength in sales and earning growth



Management continues to have a positive outlook for the balance of the

year



Accelerated debt repayments remain on track in 2013



Store pipeline continues to be sufficient to drive future growth plans

Summary