1H17 MPM Company Highlights and Financial Results (Ticker: MPMX) August 2017
MPM: FROM “PIPELINE” TO “PLATFORM” BUSINESS OUR VISION To positively impact lives through smart mobility and social integration OUR MISSION To create ecosystems of the best ideas (game changing innovation) delivered through the most relevant products and services (understanding people better) in the most effective ways (optimized business models & cross selling) , by the most talented people (high performance culture) in our industry OUR CREDO Progressive Thinking Active Ownership Collaboration 2
TABLE OF CONTENT MPM: Company Highlights 01 02 Consolidated Financial Results: 1H 17 Updates 03 Business Segment Performance 3
MPM IN A SNAPSHOT: LEADING SMART MOBILITY COMPANY IN INDONESIA Market expertise Strong Corporate Significant Growth With 30 year of experience Governance & Financials Potentials Est. in 1987 by W. Soeryadjaya as BOC & BOD has over 100 years of 4 main business segments, each with • • • 2W distribution business for Honda management and governance with growth potential industry experts, independent Expertise and leading market Network and presence across • • commissioners, and professionals positions in consumer automotive archipelago serving 10MM+ individual in place (2W & 4W) supply chain and value customers, 1,000+ corporate clients, chain Listed in IDX (Ticker: MPMX) in and 10,000+ 3 rd party channels • 2013, raising Rp 1.5T from public Recognized by industry as 2016 8,000+ employees with high • • (22% enlarged TSO) Top 50 Best Company in Indonesia performance culture (Forbes) and other various awards Total Equity @ Rp 5.1T with cash • balance @ Rp 1.3T (June ’17)* Resource: MPMX, as of 30 June 2017 4 *Figures are post MPMF deconsolidation
MPM BUSINESS: COLLECTIVE POWER Distribution & Retail Consumer Parts 77% 10% 6% 2W Honda distribution in E. Java + NTT 2W & 4W engine lubricant principal & • • with 290 dealer relationships, serving parts distribution company 7% ~4.2MM active customers 3,300+ Federal Oil Centers & 10,000+ 3 rd • Rp 17.7T 2W Honda 3S dealerships with 40 party workshops nationwide, serving • outlets across Indonesia 10MM+ customers per year FY16 Revenue Auto Services 4W Nissan & Datsun 3S dealerships • with 5 outlets across Indonesia Independent 4W rental/lease company • with 13K+ fleet, serving 1,000+ corporates Financial Services Fleet & logistic management services • Independent 2W, 4W, lease financing Non-life general insurance including • • business with 87 outlets nationwide, 2W, 4W, cargo, & property with 22 serving 135K+ customers offices & 6 service points nationwide Resource: MPMX, as of 30 Jun 2017 5
GOVERNANCE AND MANAGEMENT Board of Commissioners Board of Directors Strong mix of operational, strategy, M&A, and governance Over 100 years of combined professional experience expertise Rudy Halim Edwin Soeryadjaya Group CEO Chairman Agung Kusumo Troy Parwata Titien Supeno Andi Esfandiari Tossin Himawan Lee Chul Joo Danny Walla Managing Director Group CFO HR Director Director Commissioner Commissioner Commissioner Shareholding Morninglight Investment S.a.r.l 15.3% Istama Siddharta Simon Halim 48.6% Claris Investment Pte. Ltd. 6.8% Independent Independent PT Saratoga Commissioner Commissioner Investama Sedaya Public & Others 29.3% Tbk Resource: MPMX, as of 30 Jun 2017 6
MPM GROUP NETWORK: PRESENCE ACROSS INDONESIA 22 MPM Insurance Offices & Outlets 47 FKT Distributors for Federal Oil & Federal Mobil 30 MPM Rent Offices & Service Points 5 MPM Auto Dealers 87 MPM Finance Offices & Outlets 40 MP Motor Retail Outlets 290 MP Mulia Dealers Resource: MPMX, as of 30 Jun 2017 7
TABLE OF CONTENT MPM: Company Highlights 01 02 Consolidated Financial Results: 1H17 Updates 03 Business Segment Performance 8
1H17 REVENUES: SEGMENT CONTRIBUTION & MOVEMENT Revenues 1H17 Revenues Growth % YOY, in Rp billion Rp 7.7T 11% 80% (777) (40) 106 46 24 8% 9.9% QoQ, -7.7% YoY 8,349 -7.7% 7,708 1% 1H17 1H16 YoY revenue growth %YoY -10% +19% +38% -4% Distribution & Retail Consumer Parts Elimination Auto Services *Financial Services Summary Total Revenue was impacted by s horter working period during Lebaran holidays. Sales from 2W distribution was affected by slow harvest condition in East Java while consumer cautious spending affected Consumer Parts sales. Higher revenue in Auto Services was driven by stable rental business and higher disposal value of used cars. Financial Services continues to deliver strong performance. * Includes MPMInsurance only 9
1H17 NPATMI: SEGMENT CONTRIBUTION & MOVEMENT NPATMI Growth % YOY, in Rp billion NPATMI 1H17 Rp 323B 50.6% QoQ, 79.5% YoY (20) 141 323 38 1H17 (18) Distribution & Retail 41% (21) 10 13 180 Consumer Parts +79% 41% 1H16 YoY NPATMI growth Auto Services 10% Financial Services *8% %YOY -226% -17% -14% +114% +51% +9,950% +136% Distribution & Retail Consumer Parts 0% 10% 20% 30% 40% 50% Auto Services **Financial Services *Includes Discontinued Operation (MPMFinance) 7% and MPMInsurance 1% Minority Interest Discontinued Operation Head Office Summary NPATMI strong growth is driven by overall improvement of operational efficiency and one-off gain of MPM Finance divestment. Higher operational efficiency contributed to the significant increase of profitability in Auto Services. Improved asset quality and strong business growth drove the solid profitability in Financial Services. The profitability in Distribution & Retail and Consumer Parts were impacted by the lower sales. ** Includes MPMInsurance only 10
1H17 Financial Highlights P&L Highlights B/S Highlights %Rev YoY% Key Ratios 1H17 QoQ% YoY% 1H17 QoQ% 1H17 1H16 N/A Cash and Cash Equiv. -24.4% Net Debt/EBITDA* Net Revenues 7,708 9.9% -7.7% 1,314 61.8% 1.2x 4.5x 11.6% Total Asset -35.7% Net Debt/Equity Gross Profit 893 9.6% -4.4% 9,751 -34.1% 0.3x 1.0x 4.2% Bank Funding -92.3% ROE* NPATMI 323 50.6% 79.5% 324 -92.0% 11.0% 6.7% 10.1% Bonds 1.6% ROA* EBITDA 779 12.6% 28.5% 2,679 1.8% 5.8% 2.5% 3.3% BV of Equity -9.0% FCCR CAPEX 253 7.0% -42.5% 5,097 -12.5% 4.3x 3.5x (In Rp Billion) Summary Gross margin, EBITDA margin and Net margin all increased compared to the same period last year. CAPEX spending continues to come down, in line with the key focus of 2017. Strong balance sheet with healthy Net Debt/Equity ratio. ROE, ROA and FCCR ratio have improved significantly. * Annualized figure 11
MPM Finance Divestment and Deconsolidation Impact Without MPMF Divestment (Estimated) After MPMF Divestment (Actual) 1H17 Income statement (in Rp T) 1H17 Income statement (in Rp T) Revenue 8.3 Revenue 7.7 EBITDA 0.68 EBITDA 0.78 NPAT NPAT 0.35 0.25 NPATMI 0.21 NPATMI 0.32 MPMF 1H17 Balance sheet (in Rp T) Deconsolidation 1H17 Balance sheet (in Rp T) Impact Assets 15.4 Assets 9.8 Liabilities 9.5 Liabilities 4.7 Equity 5.9 Equity 5.1 Net Debt Net Debt 1.7 6.7 Key ratios Key ratios 8.2% EBITDA margin EBITDA margin 10.1% NPAT margin 3.0% NPAT margin 4.5% 3.2% ROA* ROA* 5.8% 8.5% ROE* ROE* 11.0% Net Debt to Equity 1.1x Net Debt to Equity 0.3x 4.9x Net Debt to EBITDA* Net Debt to EBITDA* 1.2x * Annualized figure 12
KEY FOCUS 2017: (1) COST LEADERSHIP Financial Highlights (in Rp billion) %Rev QoQ% YoY% 1H17 Revenue / HC - 13.0% -4.6% 2.5 Total Opex 7.0% 9.4% -4.4% 536 Compensation & Benefit 2.8% • -3.7% -2.0% 217 Advertising & Promotion 1.3% • 7.4% -21.7% 99 Transportation & Storage 0.5% • 20.4% -12.1% 39 Provision 0.2% • 85.0% 56.1% 12 Average CoF 10.1% Summary Major OPEX items: C&B, A&P, T&S, have decreased YoY in line with the key focus of 2017. Provision was driven by MPM Rent as a result of the introduction of prudent accounting management. Continue monitoring Revenue per headcount as part of the key focus of 2017. 13
KEY FOCUS 2017: (2) OPERATING CASH FLOW 1H17 Cash Flow (in Rp billion) Operational Highlights 1,869 1H16 1H17 1,739 YoY% 1,314 1,202 1H16 1H17 AR Days 18.3 17.8 2.6% 407 314 243 AP Days 28.4 22.5 -20.7% Inventory Days 20.6 17.6 -14.7% (176) (268) (538) Balance as of Operating Balance as of Investing Financing Summary Activities June 30 th December 31 st Activities Activities Keep up the momentum of producing positive cash 1H17 YoY% flow. Beg. Balance of Disc. Op. - (83) CF from Investing grow significantly due to the Adj. Beg. Balance* 1,202 - proceeds from MPMF divestment. CF from Operating -22.6% 243 CF from Financing decreased significantly due to the CF from Investing 252.2% 407 effect of centralized treasury center. CF from Financing -206.4% (538) Continue to monitor Cash Conversion Cycle. Ending Balance -24.4% 1,314 * Net off with the Beginning balance of Disc. Operation. 14
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