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October 2017
PT Matahari Department Store Tbk
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Table of Content
Indonesia Macro Overview 4
Operational and Strategic Updates Store network 16
Operations, Merchandising and Marketing 17
Mataharistore.com 18
Logistics 19
Summary 20
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Indonesia Macro Overview
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Consumer Confidence Index
Source: Bank Indonesia and BPS
Key Macro-Economic Data
GDP Growth
GDP Regional
4.09%
Sumatra Java Kalimantan Eastern Indonesia
2Q16 2Q17
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Indonesia Macro Overview
Key Financial Highlights
Gross Sales
EBITDA
Net Income SSSG
IDR Bn
34.8% 34.7% 10 bps
15.5% 9.6% 590 bps
10.8% 5.2% 560 bps
Gross Margin
EBITDA Margin
Gross Sales
EBITDA
Net Income SSSG
IDR Bn
35.6% 35.8% 20 bps
17.2% 16.4% 80 bps
12.2% 11.4% 80 bps Gross Margin
EBITDA Margin
Net Margin Net Margin
35.5%
Sales in Q3 impacted by seasonality, YTD sales flat with LY
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to Yohana’s
berly’s
15,491
16,347
DP
SSSG %
SSSG was -26% in Q3 2017 and -2.7% YTD for 9M 2017
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FY
Q3
-22.2% -26.0%
Q3’ 1 Q3’ 1
6.8%
5.5%
FY' 15 FY' 16
9M
6.0%
-2.7%
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East Java Sumatra
Bali and East Indonesia
West Java
Greater Jakarta
Central Java
Gross Sales by Region (%)
Q3 2017 9M 2017
Greater Jakarta 27.3% 28.1%
Java exc Jkt 34.1% 34.8%
Outside Java 38.6% 37.1%
Total Sales 100.0% 100.0%
GDP growth, SSSG and Sales per region
Kalimantan
Note: Regional GDP as of Q2 2017
1,456
1,109
Q3' 16 Q3' 17
Gross profit and margins
IDR Bn
Merchandise margins declined on seasonality in Q3, up 20 bps in 9M
18.6% 18.9%
On a comp store opex basis, the impact of weaker sales is less pronounced
Note
1. Opex calculated as Adjusted Gross Profit less Adjusted EBITDA
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Total Company Total Company
2,661
EBITDA and Margins
IDR Bn
Expense savings partially offset seasonality and weaker sales
EBITDA as a % of Gross Sales
12 Notes
EBITDA adjusted for severance pay
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Inventory days and cash position improved
INVENTORY DAYS, CASH POSITION AND OUTSTANDING BANK LOAN BALANCE
CAPEX AND REFURBISHMENTS
FY 2016
FY 2017E
Capex
Rp357 Bn
Rp400-450 Bn
Refurbishments
16 stores
20-25 stores
End of Jun 2017
End of Sep 2017
LTM Ave. Inventory Days
112 days
118 days
Cash on Hand
Rp 2,550 Bn
Rp 768 Bn
Outstanding Bank Loan Balance
Rp 0
Rp 0
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o
Opened 1 new store in July
o
Still on track to open 1-3 more new
stores by the end of 2017
Expansion policy remains unchanged
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28.5% 28.0% 27.5% 27.5% 28.5% 36.2% 35.2% 32.8% 32.4% 31.1% 35.3% 36.8% 39.7% 40.1% 40.4%
2012 2013 2014 2015 2016
Greater Jakarta Java exc Jkt Outside Java
No Geographic area
Actual Forecast
FY2016 As of 30 Sep 2017 Balance in 2017 Future Pipeline 2018 and onwards
# of stores # of stores # of stores # of stores % mix
Merchandising
•Entered into a multi-year strategic agreement with Disney
•Rolling out new Direct Purchase Handbag lines
•Extending our shoes and apparel collection to cater for active lifestyle customers
Operations
•Reformatting merchandise assortments in stores
•Reducing over-assorted areas
•New fixture programs being implemented
•Widening aisles and improving access
Marketing
•Enhancing both Matahari and Private Label brand positioning
•Implementing simpler promotional policies
•Continuing with the increased emphasis on digital media
•Further leveraging our growing loyalty customer base
Operational updates
Q2 2017
Q3 2017
No. of transactions
~133,000
~130,000
Store pick-ups (%)
1.3%
2.7%
DP: CV sales mix
83:17
86:14
Mataharistore.com performance update
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Sales by Region (9M 2017)
Sales by Category - Offline (9M17)
Shoes,
Youth Girl, 10.2% youth girl,
26.1%
Expanding our Logistics Capabilities
Created a 100% owned subsidiary to focus on Logistics
Delivery to both Stores and consumers
Developed an e-commerce fulfillment facility in central Jakarta
Expanding our Surabaya and Bandung operational hubs
Increased investment in owned and operated fleet
Q3 SSSG came in at -26% primarily due to the seasonal shift in Lebaran, with YTD SSSG being
-2.7%
Expansion plans remain unchanged, with 6-8 new stores earmarked for completion in 2017
Merchandise and operational initiatives are on track, including the signing of the multi-year
agreement with Disney
Further developing logistics capabilities to support both offline and online sales and at the
same time reducing costs
Overall strategy is to continuously explore ways to better serve our existing customers, as
well as to grow our overall customer base
Summary
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22
82.5%
17.5%
PT Matahari Department Store Tbk
Public
Multipolar
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