Indonesia’s Most Preferred Department Store
1
Matahari Department Store
Key Highlights Q4 2013
Key Highlights FY 2013
Financial Update
Indonesia’s Most Preferred Department Store
• Consumer demand in our middle income segment continues to be strong
• Net Income up 77.8%
• Total gross sales were up 18.1%
• Comp store growth accelerated to 13.3%
• Strong Gross Margin performance
• Opened 4 new stores in Q4, or 9 new stores in FY2013, giving a total of 125
Indonesia’s Most Preferred Department Store
• Net income increased by 49.2% to Rp1,150 bn or 9.0% of gross sales
• Total gross sales Rp12,735 bn, 17.2% over 2012
• Comp store sales growth 12.1%
• Merchandise gross margin improved 20 bps over 2012
• Adjusted EBITDA was 15.2% over LY, at 16.5% of gross sales, 20 bps lower
than LY
7
10,867
12,735
FY12 FY13
IDR Bn
Gross Sales
SSSG
12.1%
1,819
2,096
FY12 FY13
IDR Bn
Adjusted EBITDA
Adjusted EBITDA Margin
16.5%
771
1,150
FY12 FY13
IDR Bn Net Income
7.1%
Net Income Margin
9.0%
11.1%
Financial Snapshot FY2013
MDS’s exclusive brands continue to deliver strong performance
DP increased by 280 bps in FY2013, as compared to FY2012
% of Gross Sales
9 new stores opened in 2013
125 stores in 61 cities across Indonesia Up to Jan 2014
East Java
16 stores (9 cities)
(1 new store)
Sumatra
20 stores (11 cities)
(2 new stores)
Kalimantan, Bali and East Indonesia
West Java
11 stores (7 cities)
Greater Jakarta
35 stores (11 cities)
(2 new stores)
Central Java
17 stores (8 cities)
(1 new store)
26 stores (15 cities)
(3 new stores)
MDS Store Overview
No. of Stores
As of 31 Dec 2012 116
Added in 2013 9
Total 125
Store pipeline continues to grow
# of stores % mix # of stores % mix # of stores % mix
1 Jabodetabek (Greater Jakarta) 33 28.5% 35 28.0% 14 19.2%
2 Java (Exc Greater Jakarta) 42 36.2% 44 35.2% 22 30.1%
3 Outside Java 41 35.3% 46 36.8% 37 50.7%
Total 116 100.0% 125 100.0% 73 100.0%
As at 31 Dec 2012 Future pipeline 2014-2016 Geographic area
Indonesia’s Most Preferred Department Store
Strong sales growth IDR Bn
Q4 delivered a 18.1% sales growth, FY13 growth was 17.2%
2,626
3,102
10,867
12.0%
13.3%
Q4'12 Q4'13
11.1%
12.1%
FY12 FY13
13 13 Strong SSSG
SSSG %
17.2%
17.7%
FY12 FY13
19.2%
18.8%
Q4'12 Q4'13
Adjusted Opex(1)as a % of Gross Sales
15 15 Adjusted EBITDA and Margins
IDR Bn
EBITDA grew by 15.2% in FY13 , equivalent to 16.5% sales
1,819
2,096
FY12 FY13
390
493
Q4'12 Q4'13
Adjusted EBITDA as a % of Gross Sales
14.9%
15.9%
16.5%
Net Profit and Margins
FY13 net profit increased 49.2% over 2012
IDR Bn
771
1,150
FY12 FY13
141
251
Q4'12 Q4'13
7.1%
9.0%
5.4%
17 17 Total Debt and Interest Expense
Total debt at the end of 2013 was Rp1.6 T, following Rp1.4 T of debt pay-down, in line with
the guidance given
On Dec 30th, 2013, we made a prepayment of
Rp300 bn
Additional debt prepayment of Rp100 bn was made on Jan 30th, 2014
Management will continue the debt prepayment this year
Effective interest rate declined from 12.3% in FY12 to 11.6% in FY13, driven by the
refinancing in 2012
The current interest rate 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
1,596 1,496
2012 2013 Jan-14
416
269
2012 2013
Total Debt Interest expense
Sales Growth and SSSG by region – FY2013
Geographic Area Stores as at
Dec 2013
Store Mix % to Total
Sales (IDR Bn)
Total Sales % growth FY13
SSSG% Q4
SSSG% FY13
Greater Jakarta 35 28.0 3,780.0 15.6 12.6 12.4
Java exclude Greater
Jakarta 44 35.2 4,132.0 19.5 17.0 15.4
Outside Java 46 36.8 4,823.0 16.5 10.8 8.9
Total 125 100.0 12,735.0 17.2 13.3 12.1
19
FY 2012 Q1. 2013 Q2 2013 Q3 2013 Q4 2013 FY 2013
Gross Sales 10,866.9 2,372.4 2,787.2 4,473.4 3,102.0 12,735.0
SSSG 11.1% 13.2% 14.9% 9.0% 13.3% 12.1%
Growth 17.7% 18.3% 20.4% 14.1% 18.1% 17.2%
Net Revenue 5,616.9 1,257.2 1,483.7 2,367.3 1,646.0 6,754.3
Growth 19.5% 21.6% 24.4% 16.9% 20.5% 20.2%
Adjusted Gross Profit 3,685.3 794.0 959.8 1,519.2 1,074.9 4,347.9
Margin 33.9% 33.5% 34.4% 34.0% 34.7% 34.1%
Adjusted EBITDAR 2,515.0 486.1 617.5 1,106.5 702.3 2,912.4
Margin 23.1% 20.5% 22.2% 24.7% 22.6% 22.9%
Adjusted EBITDA 1,818.6 296.8 422.0 884.3 492.7 2,095.8
Margin 16.7% 12.5% 15.1% 19.8% 15.9% 16.5%
Profit before tax 1,159.0 138.1 274.5 767.5 343.5 1,523.6
Margin 10.7% 5.8% 9.8% 17.2% 11.1% 12.0%
Net Profit 770.9 82.2 182.7 634.6 250.7 1,150.2
Margin 7.1% 3.5% 6.6% 14.2% 8.1% 9.0%
growth 65.6% 82.9% 62.4% 34.3% 77.8% 49.2%
IDR Bn
Key Profit & Loss Items
Results in Q4 continue to show strength in sales and earning growth
Management continues to have a positive outlook for 2014
Accelerated debt prepayments were on track in 2013 and will continue in
2014
Store pipeline continues to be sufficient to drive future growth plans
