PT ADI SARANA ARMADA
TBK
PUBLIC EXPOSE
Table of Content
1
2
3
5
Overview of PT Adi Sarana Armada Tbk (“ASSA”)
Investment Highlights
Business Strategies
Financial Highlights
2
3
1
2007 June.
Organization & Business
Restructuring
Focus on IT Investment to support
business
Operating
around 2,000 rental unit
Milestone
200 8 200
8 20020099 20120100
2011
2011
2012
2012
2003 January.
Start Operational as ADIRA Rent
800++ rental units
2004 October.
Established ADIRA Driver Services
2011 March.
Receive ReBi Award as Highest Growth Indonesia Rental Car Company
2011 June.
Receive IMAC Award as Indonesia’s Most Admired Companies
2010 October.
Change Company’s Brand from
ADIRA into ASSA
2012 November.
GO Public – Listed in IDX
2011 February.
Start Galeri Mobil as used car business unit
2009 February.
Obtained ISO 9001:2000
2008 February.
Launched iSTAR system
2008
Launched 6 (six) new branches in Malang,
Pekanbaru,Bata m, Manado, Bali and Semarang
2006 May.
Established ADIRA Logistics Service
2012 April.
Receive ReBi Award
as Highest Growth Indonesia Rental Car Company
2011 November.
Receive Indonesia Excellence Award as Emerging Logistics Service Provider of the Year
2012 June.
Receive IMAC Award as Indonesia’s
Most Admired Companies
2011 July.
Obtained ISO 9001:2008
2011 August.
Obtained ISO 14001:2004
2011 September.
Obtained Ohsas 18001:2007
2013 March.
Receive Contact Center Service Excellence Award for call center category
2013 February.
Receive Top Brand Award for car rental
category
2013
2013
2014
2014
2013 December
Receive Indonesia Best Corporate Transformation 2013
Receive Indonesia Good Corporate Governance Award 2013
2013 December.
12,937 rental units
2,600++
drivers
2014
Established BidWin (Automotive Auction)
Target fleet: 15000++ rental units
2013 November
Obtained ISO 9001, ISO 14001, OHSAS 18001 & UKAS
Receive Corporate Image Award 2014, car rental category
Receive The Best Contact Center Indonesia 2014 (Platinum category for Supervisor)
Line of Business
Rental
Logistic
Used Car
Driver
Service
ASSA Rent provides long term car rental service that includes package with
monthly periods (at least 1 month) and annually. These services help your companies in managing
transportation needs, both for operations and vehicles for the management team.
ASSA Rent short term rental service includes
daily and weekly
rental packages to accommodate business travel, personal agenda, and family.
ASSA also provides integrated logistics services to fulfill your company needs of transportation
management through route optimization, delivery management, setting delivery times, and the application of risk management in accordance with best practice industry standards.
ASSA Logistics is intended to meet the needs of customers in supply chain
management to
provide qualified goods storage facilities
Galeri Mobil engages in trading (buying-selling) of high quality used cars by wholesale and retail
ASSA Driver
Services was
established to meet customer needs of driver for operating vehicle rented from
ASSA Rent or
ASSA Logistics.
Thus ASSA Driver Services, which currently managing more than 2,500 personnel, strive to provide qualified professional driver with high skills through training and good coaching.
Used Car Auction
14,095++ rental unit
18 branch offices 600++ logistic unit8 operational point
100++ car unit capacity
2 Showroom
2,600++ drivers
SMART Driver
5
1 Auction site
Bidwin was
established in mid 2014. Currently we auction around 200 units per month, and we also have network of 500 used car dealer across the nation.
The size of our operation site in Jakarta is
approximately 2.7 hectare
Business Highlights
The Business
Market
Leader
Nationwide
Prestigious
Customers
Robust 1H2014
Financial
Leading corporate car rental in Indonesia
Corporate Transportation and Integrated Logistic Solution Provider, and related value chain
No. 2 corporate car rental in Indonesia based on numbers of rental unit*)
14,095++ rental
unit
Nationwide coverage
18 branch offices
8 logistic
operation points
2 used car outlets
597++
authorized service centers
2,600++ drivers
Diversified industry of customers
significant
portion of
customer which is leader in their industry
*)Company estimate
6
Vision
To be the Best Corporate Transportation
& Integrated Logistic Solution Provider
Mission
“We dedicate ourselves in maximizing
& serving through a commitment that leads the organization to highest levels of quality, customer
care, employee engagement & shareholder value”
Value
S
pirit of unityP
erfection in all we doE
mpathic communication(TP Rachmat and Family) 50.08%
Corporate Structure
PT Adi Sarana
Armada Tbk
PT Adi Sarana
Armada Tbk
PT Adi Dinamika Investindo
PT Adi Dinamika Investindo
PT Plaza Auto Mitra
PT Plaza Auto Mitra
PT Daya Adicipta Mustika
PT Daya Adicipta
Mustika TP Rachmat
TP Rachmat ManagementManagement
24.94% 19.17% 5.97% 4.58% 12.19%
99.80%
PT Duta Mitra
Solusindo
*)PT Duta Mitra
Solusindo
*)*) PT Duta Mitra Solusindo operates ASSA Driver Service
**) Established on July 2012 to handle ASSA Logistic Service As of March 31st 2014
***)Established on June 2014 to handle Bidwin Auction Service 7
PT Adi Sarana
Logistik
**)PT Adi Sarana
Logistik
**)99.50%
Public
Public
33.51%
PT Adi Sarana
Lelang
***)PT Adi Sarana
Lelang
***)ASSA is run by a dedicated team of professionals, the majority of which had
relevant experience of over 10 years.
Rudyanto
Hardjanto
Commissioner
Board of Commissioners – Strong Focus on Corporate Governance
Board of Commissioners & Directors
Hadi Kasim
President
Commissioner
Thomas H.
Setjokusumo
Independent
Commissioner
Board of Directors – Committed to Shareholder Value Creation
Prodjo
Sunarjanto
President
Director
Hindra Tanujaya
Finance Director
Jany Candra
Business &
Services
Director
Maickel Tilon
Operational Director
Rallyati A. Wibowo
Logistic & GA Director
(Un-affiliated Director)
Triputra Group
Triputra Agro Persada
Palm Oil Producer
Kirana Megatara
Largest Crumb Rubber Processor
Padang Karunia Group
A Group of Mining Companies Numerous Subsidiaries in Mining, Infrastructure, Trading &
Contractor companies
Binabusana Internusa
Garment and Apparel Manufacturers
Dharma Group
Metal Based manufacturing Companies
Lemindo Abadi Jaya
Adhesive Manufacturer & Exporter and with a diversified portfolio in
Chemical Products
Pako Group
Producer & Exporter of Steel & Alloy wheel rims
Assa Rent
2nd Largest Indonesian Corporate Car Rental
Bank Sahabat Purbadanta
Microfinance services
Daya Adicipta Mustika
Honda Motorcycle Dealer
Daya Motor
Motorcycle Retailer
Puninar Logistics
Logistics Solutions Provider
Triputra Group is one of Indonesia’s leading Business groups, owned by Mr. TP Rachmat, who
previously worked with Astra Group for over 30 years including 16 years as the CEO and 6 years as Commissioner of PT Astra International Tbk.
Triputra Group was voted as one of the Top 10 Business Groups in Indonesia based on a
survey by Globe Asia 2011.
10
Strategically Positioned to Meet
Indonesian Market
1
Rental
Logistic
Used Car
Driver
Service
#2 in the market *)
14,095++ rental unit
18 branch offices
600++ logistic unit
8 operational point
100++ car unit capacity
2 Showroom 2,600++ driversSMART Driver
*) Company estimate based
on numbers of unit
Indonesia is one of the largest
market for automotive industry in
Asia
Indonesia is one of the largest
market for automotive industry in
Asia
Large demand driven by corporate
segment still could not fulfilled by
Indonesian rental companies
Large demand driven by corporate
segment still could not fulfilled by
Indonesian rental companies
Increasing corporate policy to
outsource its vehicles
Increasing corporate policy to
outsource its vehicles
As Indonesia’s leading corporate rental company, ASSA is strategically positioned to benefit from the robust growth in
car rental market in Indonesia, especially corporate segment
Why Companies Prefer to Rent ?
• No need for Down payment
• Companies can focus on its core business
• Risk transfer for insurance, vehicle maintenance, human resources, depreciation
12
Fast-Growing Company in the Industry
(Rental Units) (Fleet size 2014)
14,095++ vehicles and going strong (as of today)
Regardless of a significant number of players, the opportunity for growth is still enormous for
ASSA to capture.
ASSA does not have to win price wars, because this will only lower the quality of services
provided
ASSA wins by differentiating its range of products and increasing further the quality of services it
provides.
The increased market share, brand recognition of ASSA, and efficient operation management,
speaks for itself of the successful direction of ASSA.
13
Car Rental Company with The Highest Growth Record in Indonesia (2011-2012)
Source: Company Website
Leading Indonesian corporate rental company
R1 ASSA R2 R3
14095 14000
8000
2007 2008 2009 2010 2011 2012 2013 8M2014 0
4158 4972
7049
8894
10969
12937
Proven Business Performance
1
Historical per year Fleet utilization ratio
In Percentage (%)
The dedicated and experienced
management and staff ,can estimate and maintain a high Utilization ratio (average at 90%).
A high Utilization rate is key to cost
effectiveness and higher profitability. As the operations span the Indonesian country, ASSA is strategically positioned to facilitate better services and has the ability to quickly respond to new orders.
Car Rental Services still contributes
approximately 80% of total revenue for the last 5 (five) years. However ASSA’s other line of business, also booked strong revenue growth.
The dedicated and experienced
management and staff ,can estimate and maintain a high Utilization ratio (average at 90%).
A high Utilization rate is key to cost
effectiveness and higher profitability. As the operations span the Indonesian country, ASSA is strategically positioned to facilitate better services and has the ability to quickly respond to new orders.
Car Rental Services still contributes
approximately 80% of total revenue for the last 5 (five) years. However ASSA’s other line of business, also booked
strong revenue growth. 14
ASSA’s fleet expansion not only translates into
robust revenue growth from its Car Rental Services, but also provides future income from Used Car Sales Services.
ASSA’s fleet expansion not only translates into
robust revenue growth from its Car Rental Services, but also provides future income from Used Car Sales Services.
Revenue Contribution
In IDR million
392,37 Leading Indonesian corporate rental company
2009 2010 2011 2012 2013 1H2014 92 92.2
91.4
92.2
92.6
93.1
2010 2011 2012 2013 1H2014 0%
77.40% 75.80% 69.08%
66.34% 71.96% 13.71% 14.69%
18.59% 19.70% 13.82% 8.89% 9.51% 12.33% 13.96% 14.22%
Logistic Used Car Rent
Excellent Vehicle Portfolio Mix
1
Fleet Composition by Brand
As non-affiliated Car Rental Company to certain
brand of car manufacturer, the company retains the flexibility to diversify its fleet composition to better fulfill customer demand and also to obtain higher resale value.
Understanding and managing the mix of brands, is
a key to both the development of a winning business strategy and its successful implementation.
Our strategic growth challenges can be addressed
through our portfolio, and the choices of brands provides the resources we need to succeed to sustain market or enter new markets, and provide new products and better service.
Fleet Composition by Type of Vehicle
As of 1H2014, Total Unit: 14,095 Vehicle
Majority of the fleet is comprised of passenger vehicles due to its higher operating margin and higher resale value. The higher operating margin is due to the fact that passenger vehicle customers are less price sensitive compared to the other type of customers.
The brand credibility and good track record in our Rental division have served well in the Driver Services division as well. Our well-trained employees in the Driver Services division will continue to strengthen our brand name.
The company’s policy on vehicle’s disposal is approximately 4 years for passenger and 7 years for commercial vehicles. This policy is well reflected in the fleet composition with 82% of the company’s vehicles are less than 4 years old.
15
Fleet Composition by Vehicle Age
Leading Indonesian corporate rental company
45.41%
4.05% 1.97% 1.27%
Toyota
Isuzu Honda
<less than 1 year; 22.68%
1-2 years; 27.48%
2-3 years; 21.85% 3-4 years; 19.41%
<=1year 15%
>1- 3years 20%
>3- 6years 40% >6years
25%
Focus on Long-Term Rental Customer
2
16
Long Term Relationship with Key customer
As of June 2014
Number of Customer
As of June 2014
Strong Relationship with high quality corporate customers
Focus on long term base customer to secure contracts
2007 2008 2009 2010 2011 2012 2013 1H2014 0
100 200 300 400 500 600 700 800 900 1000
137
211 235
402
518 560
800
Top Customer
Secure Long Term Contract with
Corporate Customer
2
Over 800 corporate customers with
secure and flexible long term
contract for ASSA side
Over 800 corporate customers with
secure and flexible long term
contract for ASSA side
1.3 trn IDR outstanding contract until
2020
1.3 trn IDR outstanding contract until
2020
Prestigious corporate customers
Prestigious corporate customers
Strong track record for long term contract with its major customers
17
Contribution from Top Customer by Fleet Size
Customer oriented corporate culture to provide highest
quality of service
3
18
SMART
driver
SPEED
S
pirit of unity,
P
erfection in all we do,
E
mpathic communication,
E
njoyable working
environment,
D
iscipline and integrity
AQUCARE
A
ppearance,
Q
uick
R
esponse,
U
nderstanding
C
ustomer,
C
ourtesy,
A
ccuracy,
R
ight
S
olutions and
E
asy to Access
Indonesia’s Most Admired Companies
Category Car Rental Company (Bloomberg Business Week &
Frontier - 2011 & 2012) Indonesia Emerging Domestic Logistics
Service Provider of the Year (Frost & Sullivan - 2011)
ISO 9001 ISO 14001 OHSAS 18001
UKAS
Customer oriented corporate culture to provide best quality of service and achieve high customer satisfaction
Deep and Nationwide Coverage
4
We combine technical skills with marketing excellence.
Our extensive geographical coverage is a key factor to our success.
Through geographical research, discipline and experience
in strategy implementation, we can place our excellent and trained sales force and branches where it matters to our clients.
18 Branch & 16 Affiliated Offices
597++ Authorized Service Centers
24/7 Support & Emergency Road Assistance
18 Branch & 16 Affiliated Offices
597++ Authorized Service Centers
24/7 Support & Emergency Road Assistance
19
Fleet size by City
As of September 2014
Growth in Branch
# of Branch Deep and nationwide coverage supported by customized IT platform
Bali; 637 Balikpapan ; 661 Bandung ; 1015
Banjarmasin; 577 Jakarta1; 1233
Jakarta2; 1419 Jakarta3; 923 Makassar; 1121 Medan ; 1675
Palembang; 858 Pekanbaru ; 911 Semarang ; 906
Upgrading Our IT Platform to SAP
4
20
One of the company’s breakthrough in escalating
operational process quality is by forming a customized IT
platform called iSTAR or Integrated System Technology
ASSA Rent, which integrates whole company’s aspects,
from front to back end processes.
As our company gets bigger and business development
becoming more complicated, we see the necessity for us
to upgrade our operating system from iStar to SAP. With a
strong and proven IT platform, we believe it will benefit
the development of our business in the long run.
Seamless Business Technology
Integration
4
SERVICE OREIENTED CULTURE
SERVICE OREIENTED CULTURE
CUSTOMIZED IT SYSTEM
CUSTOMIZED IT SYSTEM
3rd Party
Workshop
Call Center
ASSA Branches
ASSA Service Point
(3) . Service
Delivery
(1.a) Preventive
Maintenance Call
(2) . Dispatch
Order
(4) . Customer Satisfaction
Confirmation Call
(1.b) Service Request
Experienced Management Team
5
Prodjo
Sunarjanto
President Director
Hindra Tanujaya
Finance Director
Jany Candra
Business and Services Director
Maickel Tilon
Operational Director
Rallyati A.
Wibowo
Logistic & GA Director
(Un-Affiliated Director) 22
Current position since 2011,
Working Experience in Industry: 21 Years
Previously held position: CEO PT Astra International – Toyota Sales Operation Auto 2000 (2005-2010), Commissioner PT Serasi Autoraya (2006-2007), President Commissioner PT Toyo Fuji Logistic (2005-2007), Director Astra Mitra Ventura (2000-2005), President Director PT Serasi Autoraya (1994-2005), General Manager PT Serasi Autoraya (1991-1994)
Current position since 2007,
Working Experience in Industry : 21 Years
Previously held position: Operational General Manager Mobil’88 (PT Astra International – Used Car) (2006-2007), Accounting and Finance General
Manager PT Serasi Autoraya (1997), Accounting Manager PT Astra International – Toyota Sales Operation Auto 2000 (1991)
Current position since 2007,
Working Experience in Industry : 13 Years
Previously held position: Management and Business Development Manager PT Serasi Autoraya (2005-2007), Marketing and Customer Service Manager PT Serasi Autoraya (2005)
Current position since 2007,
Working Experience in Industry : 18 Years
Previously held position: Regional Manager PT Serasi Autoraya (1994-2007)
Current position since 2012
Previously held position: Finance and Administrative Director PT Indospec Asia (April 2012-July 2012), Audit Committee PT Tugu Pratama Indonesia (2010-2011), Vice President of Risk Management PT Surya Citra Media (April 2009-October 2009), Vice President of Accounting and Finance, Human Resource, and General PT Surya Citra Media (2005-2009), Vice President Finance and Accounting PT Kustodian Sentral Efek Indonesia (1995-2005), Vice President of Corporate Comptroller PT Sewu New York Life (1992-1995), Assistant Manager Price Waterhouse (1986-1992)
23
Key Strategies
Expand Market
Share
More Effective &
Efficient
Diversify the
Business
24
Add new branch and
representative offices
Improve on customer
service, quality as well as product availability and choices offered to customers
Increase customer
satisfaction by
improving brand image, technology, vehicles, human resource development and loyalty program
Continuous evaluation
on business process and continuous
improvement on
operational procedures
Continuous human
resource development, QCC Convention, GCG, Risk Management and HSE
Continuous evaluation
and development of AQUCARE and SMART driver
Internal development
of information technology
Provide driver for hire
service to customers
Galeri Mobil:
Alternative sourcing of vehicles through
external wholesale purchase and provide credit facility to
customers
ASSA Logistic:
Integrated warehouse and distribution
management
Bidwin: Establish Used
New
Productive
Assets /
Vehicles
Rent & Maintain
Vehicle
Disposal
± 4 years forpassenger ± 7 years for
commercial
Matching Cash Flow to Debt
Management Strategy
Reven
ue
Monthly Rental
Revenue
Ballon Payment
on Outstanding
Loan
Payment to reduce
outstanding loans
Loan
Facility
Loan to
purchase
productive
assets / new
vehicles
Entering the Used Car Auction
Business
Reasons to enter Used Car Auction Business?
• Synergic with ASSA business, which practically an extension of our existing used car tender
• Demand for Used Automotive is still very high, car in the lifecycle changed ownership up to 4 times
• Growing market for repossess vehicles services, in which financial companies must outsource the sales of repossess vehicle to a third party
• Create a transparent market making activity for our customers
Detail of Operation
• Operation will commence beginning of June 2014 in our existing land in Tipar, Cakung Jakarta.
27
GDP Growth Car Sales in Indonesia
High Growth Potential in the Industry
•
New car sales in Indonesia have shown positive growth in the last several years with some
growth potentials expected ahead
•
Positive GDP growth and car sales growth expectations will translate to increasing demand of
car rental services
28
Source: Gaikindo Source:
29
ASSA 1H2014 Highlight
Balance
Sheet
1H2014 2013
1H201
3
Total Asset
2363.2
2172.2
2002.3
Total Liability
1541.9
1347.2
4
1347.2
Total Equity
821.3
824.99
825
Income
Statement
1H2014
FY2013 1H2013
YoY
growth
Revenue
531.3
1018.9
494.7
7.40%
Gross Profit
167.9
345.7
164.9
1.82%
Operating
Income
97.7
218.86
110.8
-11.82%
EBITDA
232.1
463.6
227.5
2.02%
Net Income
26.9
92.01
43.1
-37.59%
Unit in Operation 13841
12937
12059
14.78%
(IDR in billions)
Sustainable Growth in Key Businesses
ASSA Rent Used Car
ASSA Logistics
Revenue
Revenue
Revenue
(IDR in billions)(IDR in billions)
(IDR in billions)
2013 1H2013 1H2014
0 100 200 300 400 500 600 700 800
675.94
330.4 382.33
2013 1H2013 1H2014
0 20 40 60 80 100 120 140
160 147
113.2
73.5
2013 1H2013 1H2014
0 20 40 60 80 100 120
98
Strong Operating Performance
Revenue
EBITDA
Operating
Profit
(IDR in billions) (IDR in billions)
Net Profit
(IDR in billions) FY2013 1H2013 1H2014
0
494.7 531.3
2013 1H2013 1H2014
0
500 463.6
227.5 232.1
2013 1H2013 1H2014 0
2013 1H2013 1H2014
0
100 92.01
43.1
