9M16 MPMX ANALYST
PRESENTATION
KEY MESSAGES
MPM Updates
Leading End-to-End Consumer Automotive Company in Indonesia
9M16 Business Segments Performance
Positive Growth in all Business Segments
9M16 Summary
-
+9% YoY Revenue Growth
-
-13% YoY NPATMI Growth
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
3
MPM BUSINESS:
4
3,9M+
active 2W
customers,
~4,000
4W sales
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 distribution since 2014 with 10 dealers
*Data as at 30 September 2016
-2% 4% 53% 45%
1% 7% 54% 38%
SEGMENT CONTRIBUTION
Revenues 9M15
IDR 12.1T
Revenues 9M16
IDR 13.2T
NPATMI 9M15
IDR 334B
NPATMI 9M16
IDR 290B
Distribution & Retail
Auto Consumer Parts
Auto Services
Financial Services
7%
6%
10%
77%
+9%
YoY
1) Non Financial Services : Mulia, MPMMotor, FKT, PMP, MPMAuto, MPMMobil, MPMRent, Grahamitra, DSS & SAK 2) Financial Services : MPMFinance & MPMInsurance
+1%
YoY
7%
7%
10%
76%
5
-13%
YoY
-16%
9M16 CONSOLIDATED REVENUE RESULTS (in Billions of Rupiah)
% Growth from
Last Year
+11%
+25%
-4%
-0%
Distribution
& Retail
Auto Consumer
Parts
Auto Services
Financial
Services
Elimination
12,133
9M15
9M16
13,193
+9%
YoY
1,087
296
(37)
(1)
(285)
6
QoQ
-9%
-11%
-6%
-3%
+1%
(444)
(31)
(9)
2
53
4,739
2Q16
3Q16
4,310
9M16 CONSOLIDATED NPATMI RESULTS (in Billions of Rupiah)
YoY
+5%
+156%
-18%
Distribution
& Retail
8
(51)
10
(8)
9M16
(6)
334
9M15
Auto
Consumer
Parts
Auto
Services
Financial
Services
-13%
+1%
-4%
+21%
Elimination
Head
Office
Minority
Interest
290
3
7
108
3Q16
110
QoQ
-9%
-8%
-27%
-16%
+32%
+15%
(6)
(6)
(2)
(3)
1
2Q16
18
-18%
% Growth from
Last Year
1,484
773
(498)
(448)
1,311
1,422
622
(441)
(151)
1,452
8
Operating
activities
Investing
activities
Financing
activities
Operating
activities
Beginning
Balance
Ending
Balance
9M16
9M15
Operating
cash inflow
increases
+24%
Investing cash
outflow
increases
+13%.
Financing cash
outflow
increases
+197%.
PT Saratoga Investama Sedaya
Tbk and Affiliates
Morninglight Investments S.a.r.l
Claris Investment Pte. Ltd.
Public & Others
Shareholder Composition as of 30 September 2016
GOVERNANCE AND MANAGEMENT
BOARD OF COMMISSIONERS
BOARD OF DIRECTORS
BoC brings strong mix of operational, strategy, M&A,
and governance expertise
2016 YTD KEY EVENTS
MPM Group listed as one of 50 Best
Companies by Forbes Indonesia
Aug 16
Sep 16
FKT received 2 Best Brand Awards for
The Best W
Matic
Lu ri a t a d
The Best W Lu ri a t
MPM Group received the Indonesia Living Legend Companies Award 2016 – as The Strong Business Fundamentals in Automotive & Component Industry from
Warta Ekonomi magazine
Nov
1
6
Federal Oil received Social Media
Award for category 2W Engine
Lubricant
Oct 16
Sep 16
MPMInsurance awarded The Best Financial Performance General Insurance 2016 from Warta Ekonomi magazine for category of company asset
between IDR 400 - 600 bio
Mulia opened MPM Learning Center & Safety Riding Center in Sidoarjo
Sep 16
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
+
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
9M16 Business Segments Performance
Positive Growth in all Business Segments
9M16 Summary
-
+9% YoY Revenue Growth
-
-13% YoY NPATMI Growth
94 96
9M15
9M16
2W DISTRIBUTION & RETAIL:
CONTINUE LEADERSHIP IN E. JAVA AND NTT
972 902 917
FY14
FY15
TTM
+2%
-7%
Sales Volume
(Unit in thousands, YoY%)
292
261
289
FY14
FY15
TTM
-11%
Revenue
(in Billions of Rupiah, YoY%)
NPAT
(in Billions of Rupiah, YoY%)
9M16 Highlights
• 2W sales volume maintains stable growth with +2% in 9M16 relative to 9M15.
• Lebaran festive period was a positive contributing factor to the 2W sales although the various natural disasters (flood,
earthquake, landslide) still distracted market condition.
• Higher revenue (+2% YoY) is driven by growth in sales volume, increase in unit price in 2016 and greater contribution from higher price models such as the scooter and sports type.
• 13% rise in NPAT as at 9M16 as compared to 9M15 is driven by improved profitability at Retail level as well as lower interest expense from dealers financing.
Mulia
• 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
• Continuously improving current business processes
-52
-73
9M15
9M16
9M15
9M16
4W DEALERSHIP:
IMPROVE SALES PRODUCTIVITY & SERVICE LEVEL
-14
Sales Volume
(Units, YoY%)
NPAT
(in Billions of Rupiah, YoY%)
9M16 Highlights
FY14
FY15
TTM
1,382
3,680
5,296
Revenue
(in Billions of Rupiah, YoY%)
FY14
FY15
TTM
856
643
FY14
• Higher sales volume as at 30 September 2016 relative to same period last year (+67% YoY).
• 50% increase in revenue as at 9M16 is driven by higher sales volume as compared to same period last year.
• Lower NPAT as at 9M16 as compared to 9M15 is due to higher OPEX in relation to scaling-up of the 4W operations as well as additional interest expense which is realized after the contruction of the new dealerships are completed.
+166%
+33%
FY15
TTM
Key Initiatives
1,166
9M15
9M16
1,262
CONSUMER PARTS:
STRENGTHEN CHANNEL & NEW PRODUCT DEVELOPMENT
FY14
FY15
TTM
FY14
FY15
TTM
+7%
-5%
Sales Volume
(Unit in thousand litres, YoY%)
251
253
FY14
FY15
TTM
+20%
Revenue
(in Billions of Rupiah, YoY%)
NPAT
(in Billions of Rupiah, YoY%)
9M16 Highlights
-1%
62,116
59,200
• Sales volume as at September 2016 risen by 10% as compared to same period last year. Overall increase is contributed by improving sales performance in all segments.
• 8% increase in revenue as at 9M16 is in line with higher sales volume as compared to same period last year.
• Lower NPAT as at 9M16 as compared to same period last year is due to one-off gain in the Sale of Land & Building (+Rp 48B) in 9M15. However, if that was taken out, NPAT for the 2 periods would be relatively similar.
63,514
Federal Oil (2W)
• Strengthen channel development
• Increase product quality
Federal Mobil (4W)
• Focusing on market growth outside Jakarta and Surabaya
• Improve B2B channels
1,678
67
MAINTAIN OPERATIONAL EXCELLENCE & CASH FLOW
6
9M15
9M16
16
9M15
9M16
FY14
FY15
TTM
-9%
Fleet Size
(Units, YoY%)
Revenue
(in Billions of Rupiah, YoY%)
NPAT
(in Billions of Rupiah, YoY%)
year but recovers from FY15 figure.• 5% fall in revenue as at 9M16 in comparison to same period last year is due to lower rental income as a result of smaller fleet size as well as decrease in used car sales.
• Higher NPAT as at 30 September 2016 (+144% YoY) is driven by higher finance income and other non-operating income (gain on forex & gain on sale of building).
-2%
-3%
Key Initiatives
• Improving operational efficiency and productivity
• Improving the portfolio of corporate clients, including new offerings to customers
* TTM figure exclude Rp 32 Billions Loss on sale of Mining Vehicles
9M15
9M16
MPM
FINANCE
:
SELECTIVE GROWTH WHILE MAINTAINING FOCUS ON ASSET QUALITY
4,093
2,934 3,582
FY14
FY15
TTM
-28%
New Booking
(in Billions of Rupiah, YoY%)
1,145 1,164 1,126
Revenue
(in Billions of Rupiah, YoY%)
NPAT
(In Billion Rupiah, YoY%)
9M16 Highlights
• 30% rise in new bookings as at 9M16 in comparison to 9M15 is driven by increase in overall segment categories (especially finance lease) as well as greater emphasis on early monitoring system to reduce overall NPL.
• Lower NPAT as at 30 September 2016 in comparison to same period last year is due to higher provision for doubtful accounts (introduction of automatic 4W provisioning in January 2016).
• NPL 90+:
3.2%
3.1%
3.3%
3.2%
3.2%
Sep'15 Dec'15 Mar'16 Jun'16 Sep'16
+22%
-3%
-48%
Key Initiatives
• Continuously monitoring and managing asset quality by and implementing early warning system across the network
MPM
INSURANCE
:
INCREASE PENETRATION GROUP & NON-GROUP BUSINESSES
Gross Premium
(In Billion Rupiah, YoY%)
31 35
FY14
FY15
TTM
+95%
NPAT
(In Billion Rupiah, YoY%)
9M16 Highlights
275
9M15
9M16
183
• Gross premium rise by Rp 92B as at 30 September 2016 (+50% YoY) driven by solid growth in most premium categories including MV, Fire, Marine Cargo and Others (Engineering Business).
• 18% higher NPAT as at 9M16 as compared to same period last year is mainly due to higher net underwriting income and net investment income.
259
16
+36%
Key Initiatives
• Increasing market penetration in MPM Group businesses as well as non-group businesses.
+75%
259
FY14
FY15
TTM
+96%
148
28
9M15
9M16
24
+50%
+18%
351
18
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
9M16 Business Segments Performance
Positive Growth in all Business Segments
9M16 Summary
- +9% YoY Revenue Growth
- -13% YoY NPATMI Growth
KEY METRICS
FY15 9M16 9M15 YoY (%) 1Q16 2Q16 3Q16 QoQ (%) Profit & Loss (IDR Billion)
Net Revenue 16,640 13,193 12,133 8.7% 4,143 4,739 4,310 -9.1% Gross Profit 2,299 1,876 1,721 9.0% 601 664 611 -7.9%
GP Margins 13.8% 14.2% 14.2% 14.5% 14.0% 14.2%
Operating Expenses Without Provision (1,444) (1,084) (1,023) 5.9% (357) (377) (349) -7.5%
EBITDA Margin 7.0% 7.1% 8.3% 6.5% 7.1% 7.6%
Balance Sheet (IDR Billion)
Net Debt/Equity 1.1x 0.9x 1.1x -14.0% 0.9x 1.0x 0.9x -6.8% ROA 2.1% 2.8% 3.2% -13.4% 2.0% 3.0% 3.2% 3.8% Net Debt/EBITDA 4.8x 4.2x 4.3x -3.4% 4.9x 4.0x 4.0x -1.1% FCCR 3.6x 3.7x 3.2x 16.5% 3.6x 3.4x 4.2x 24.4%
CONSOLIDATED
KEY METRICS - CONSOLIDATED
* Using Annualized
20
9M16 Highlights
• Net revenue and gross profit experienced positive growth in 9M16 relative to 9M15 mainly due to our robust performance in 2W distributions and consumer parts.
• GP margin as at 9M16 is stable at 14.2% relative to 9M15 but slightly improved in comparison to FY15 figure.
• Moderate increase of 5.9% in OPEX excluding provision from 9M15 to 9M16. business has introduced automatic 4W provisioning starting in 1Q16.
• On a YoY consolidated basis, lower NPAT as at 9M16 than 9M15 is mainly driven by lower other income and higher provisioning as mentioned above.
KEY METRICS
FY15 9M16 9M15 YoY (%) 1Q16 2Q16 3Q16 QoQ (%)
Profit & Loss (IDR Billion)
Net Revenue 15,471 12,316 11,251 9.5% 3,864 4,443 4,009 -9.8% Gross Profit 1,581 1,334 1,180 13.0% 427 484 423 -12.4%
GP Margins 10.2% 10.8% 10.5% 11.0% 10.9% 10.6%
Operating Expenses Without Provision (1,004) (795) (685) 16.1% (257) (286) (252) -11.9%
EBITDA Margin 7.1% 7.3% 8.5% 6.9% 7.3% 7.8%
Balance Sheet (IDR Billion)
Net Debt/Equity 0.6x 0.4x 0.6x -25.9% 0.5x 0.5x 0.4x -19.5% ROA 2.6% 3.8% 4.3% -12.2% 2.9% 4.0% 4.3% 7.0% Net Debt/EBITDA 2.3x 1.7x 2.0x -14.7% 2.2x 1.9x 1.6x -14.3% FCCR 3.4x 3.6x 3.1x 18.3% 3.6x 3.3x 4.1x 24.4%
NON-FINANCIAL SERVICES
KEY METRICS
–
NON FINANCIAL SERVICES
* Using Annualized
21
distribution and consumer parts business.• GP margin as at 9M16 is stable at 14.2% relative to 9M15 but slightly improved in comparison to FY15 figure.
KEY METRICS
FY15 9M16 9M15 YoY (%) 1Q16 2Q16 3Q16 QoQ (%)
Profit & Loss (IDR Billion)
Net Revenue 1,209 911 911 0.0% 291 309 311 0.6% Gross Profit 745 568 560 1.4% 183 190 195 2.7%
GP Margins 61.6% 62.4% 61.5% 62.9% 61.5% 62.8%
Operating Expenses Without Provision (472) (317) (362) -12.6% (110) (101) (105) 3.2%
EBITDA Margin 5.5% 3.4% 5.2% 0.3% 4.9% 4.7%
Balance Sheet (IDR Billion)
Net Debt/Equity 1.7x 1.7x 1.8x 0.4% 1.5x 1.6x 1.7x 5.8%
ROA 0.9% 0.7% 0.9% -16.2% 0.3% 1.1% 0.9% -13.3%
FINANCIAL SERVICES
KEY METRICS
–
FINANCIAL SERVICES
* Using Annualized
22
9M16 Highlights
• Net revenue remains the same YoY while there is a slight increase in gross profit due to our selective consumer financing business as part of our initiative provision from 9M15 to 9M16.
• Provision has increased as at 9M16 since the financial services business has introduced automatic 4W provisioning starting in 1Q16.
• Lower NPAT as at 9M16 than 9M15 is mainly driven by the introduction of the automatic provisioning as mentioned above.
*
