1H17 MPM Company Highlights and Financial Results
(Ticker: MPMX)
August 2017
2
MPM: FROM “PIPELINE” TO “PLATFORM” BUSINESS
OUR CREDO
Progressive Thinking Active Ownership Collaboration
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
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TABLE OF CONTENT
01 MPM: Company Highlights
02 Consolidated Financial Results: 1H 17 Updates
03 Business Segment Performance
4
MPM IN A SNAPSHOT: LEADING SMART MOBILITY COMPANY IN INDONESIA
• Est. in 1987 by W. Soeryadjaya as 2W distribution business for Honda
• Expertise and leading market positions in consumer automotive (2W & 4W) supply chain and value chain
• Recognized by industry as 2016 Top 50 Best Company in Indonesia (Forbes) and other various awards
Market expertise With 30 year of experience
• BOC & BOD has over 100 years of management and governance with industry experts, independent commissioners, and professionals in place
• Listed in IDX (Ticker: MPMX) in 2013, raising Rp 1.5T from public (22% enlarged TSO)
• Total Equity @ Rp 5.1T with cash balance @ Rp 1.3T (June ’17)*
Strong Corporate Governance & Financials
• 4 main business segments, each with growth potential
• Network and presence across archipelago serving 10MM+ individual customers, 1,000+ corporate clients, and 10,000+ 3rd party channels
• 8,000+ employees with high performance culture
Significant Growth Potentials
Resource: MPMX, as of 30 June 2017 *Figures are post MPMF deconsolidation
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MPM BUSINESS: COLLECTIVE POWER
Rp 17.7T FY16 Revenue
77% 10%
6%
7%
Distribution & Retail
• 2W Honda distribution in E. Java + NTT with 290 dealer relationships, serving ~4.2MM active customers
• 2W Honda 3S dealerships with 40 outlets across Indonesia
• 4W Nissan & Datsun 3S dealerships with 5 outlets across Indonesia
Consumer Parts
• 2W & 4W engine lubricant principal & parts distribution company
• 3,300+ Federal Oil Centers & 10,000+ 3rd party workshops nationwide, serving 10MM+ customers per year
Auto Services
• Independent 4W rental/lease company with 13K+ fleet, serving 1,000+ corporates
• Fleet & logistic management services Financial Services
• Independent 2W, 4W, lease financing business with 87 outlets nationwide, serving 135K+ customers
• Non-life general insurance including 2W, 4W, cargo, & property with 22 offices & 6 service points nationwide
Resource: MPMX, as of 30 Jun 2017
6
GOVERNANCE AND MANAGEMENT
48.6%
15.3%
6.8%
29.3%
PT Saratoga Investama Sedaya Tbk
Morninglight Investment S.a.r.l
Claris Investment Pte. Ltd.
Public & Others
Board of Commissioners Strong mix of operational, strategy, M&A, and governance expertise
Board of Directors Over 100 years of combined professional experience
Rudy Halim Group CEO
Troy Parwata Group CFO
Agung Kusumo Managing Director
Titien Supeno HR Director
Andi Esfandiari Director
Edwin Soeryadjaya Chairman
Tossin Himawan Commissioner
Danny Walla Commissioner
Lee Chul Joo Commissioner
Istama Siddharta Independent
Commissioner
Simon Halim Independent
Commissioner
Shareholding
Resource: MPMX, as of 30 Jun 2017
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MPM GROUP NETWORK: PRESENCE ACROSS INDONESIA
Resource: MPMX, as of 30 Jun 2017
22 MPMInsurance
Offices & Outlets
47 FKT Distributors for
Federal Oil & Federal
Mobil
30 MPMRent Offices &
Service Points
5 MPMAuto Dealers
87 MPMFinance Offices
& Outlets
40 MPMotor Retail
Outlets
290 MPMulia Dealers
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TABLE OF CONTENT
01 MPM: Company Highlights
02 Consolidated Financial Results: 1H17 Updates
03 Business Segment Performance
9
1H17 REVENUES: SEGMENT CONTRIBUTION & MOVEMENT
Revenues 1H17
Rp 7.7T 9.9% QoQ, -7.7% YoY
80% 11%
8%
1%
-10% -4% +19% +38%
-7.7%
(777) (40) 106 24 46
%YoY
1H16 1H17
7,708 8,349
YoY revenue growth
Distribution & Retail Consumer Parts Auto Services *Financial Services Elimination
Revenues Growth % YOY, in Rp billion
Summary Total Revenue was impacted by shorter 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
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%YOY -17% -14% +114% +51%
+79%
(18) (21) 13 10 38
180
1H16
1H17 323
141
+9,950% +136%
YoY NPATMI growth
1H17 NPATMI: SEGMENT CONTRIBUTION & MOVEMENT
*8%
10%
41%
41%
0% 10% 20% 30% 40% 50%
Financial Services
Auto Services
Consumer Parts
Distribution & Retail
Rp 323B 50.6% QoQ, 79.5% YoY
NPATMI 1H17
Distribution & Retail Consumer Parts Auto Services **Financial Services
Discontinued Operation Head Office
NPATMI Growth % YOY, in Rp billion
Summary NPATMI strong growth is driven by overall improvement of operational efficiency and one-off gain of MPMFinance 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.
-226%
(20)
Minority Interest *Includes Discontinued Operation (MPMFinance) 7% and MPMInsurance 1%
** Includes MPMInsurance only
11
1H17 Financial Highlights
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
Net Debt/EBITDA*
Net Debt/Equity
ROE*
ROA*
FCCR
1H17
1.2x
0.3x
11.0%
5.8%
4.3x
1H16
4.5x
1.0x
6.7%
2.5%
3.5x
Key Ratios P&L Highlights
Net Revenues
Gross Profit
NPATMI
EBITDA
CAPEX
1H17
7,708
893
323
779
253
QoQ%
9.9%
9.6%
50.6%
12.6%
7.0%
YoY%
-7.7%
-4.4%
79.5%
28.5%
-42.5%
%Rev
N/A
11.6%
4.2%
10.1%
3.3%
(In Rp Billion)
Cash and Cash Equiv.
Total Asset
Bank Funding
Bonds
BV of Equity
1H17
1,314
9,751
324
2,679
5,097
QoQ%
61.8%
-34.1%
-92.0%
1.8%
-12.5%
YoY%
-24.4%
-35.7%
-92.3%
1.6%
-9.0%
B/S Highlights
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MPMFinance Divestment and Deconsolidation Impact
* Annualized figure
Without MPMF Divestment (Estimated)
1H17 Income statement (in Rp T) Revenue EBITDA
NPAT NPATMI
1H17 Balance sheet (in Rp T) Assets Liabilities Equity Net Debt
Key ratios EBITDA margin NPAT margin ROA* ROE* Net Debt to Equity Net Debt to EBITDA*
After MPMF Divestment (Actual)
1H17 Income statement (in Rp T) Revenue EBITDA
NPAT NPATMI
7.7 0.78 0.35 0.32
1H17 Balance sheet (in Rp T) Assets Liabilities Equity Net Debt
9.8 4.7 5.1 1.7
Key ratios EBITDA margin NPAT margin ROA* ROE* Net Debt to Equity Net Debt to EBITDA*
10.1% 4.5% 5.8%
11.0% 0.3x 1.2x
MPMF Deconsolidation
Impact
8.3 0.68 0.25 0.21
15.4 9.5 5.9 6.7
8.2% 3.0% 3.2% 8.5% 1.1x 4.9x
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KEY FOCUS 2017: (1) COST LEADERSHIP
Financial Highlights (in Rp billion)
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 MPMRent as a result of the introduction of prudent accounting management.
Continue monitoring Revenue per headcount as part of the key focus of 2017.
Revenue / HC
Total Opex
• Compensation & Benefit
• Advertising & Promotion
• Transportation & Storage
• Provision
Average CoF
1H17
2.5
536
217
99
39
12
10.1%
QoQ%
13.0%
9.4%
-3.7%
7.4%
20.4%
85.0%
YoY%
-4.6%
-4.4%
-2.0%
-21.7%
-12.1%
56.1%
%Rev
-
7.0%
2.8%
1.3%
0.5%
0.2%
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KEY FOCUS 2017: (2) OPERATING CASH FLOW
AR Days
AP Days
Inventory Days
1H17
18.3
22.5
17.6
YoY%
2.6%
-20.7%
-14.7%
Operational Highlights
Summary
Keep up the momentum of producing positive cash
flow.
CF from Investing grow significantly due to the
proceeds from MPMF divestment.
CF from Financing decreased significantly due to the
effect of centralized treasury center.
Continue to monitor Cash Conversion Cycle.
1H17 Cash Flow (in Rp billion)
1H16
17.8
28.4
20.6
Balance as of December 31st
Operating Activities
Investing Activities
Financing Activities
Balance as of June 30th
* Net off with the Beginning balance of Disc. Operation.
Beg. Balance of Disc. Op.
Adj. Beg. Balance*
CF from Operating
CF from Investing
CF from Financing
Ending Balance
1H17
(83)
1,202
243
407
(538)
1,314
YoY%
-
-
-22.6%
252.2%
-206.4%
-24.4%
1H17 1H16
1,869
314
(268) (176)
1,739 1,202
243 407
(538)
1,314
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KEY FOCUS 2017: (3) COLLABORATIVE ECONOMY & NEW GROWTH
Collaborative Economy- ACE Performance
Improving cross-selling and up-selling between
operating companies, aligned with the Accelerated
Collaborative Economy initiatives.
New Growth-MPM Planet-The Power of Network Effects
Rally Point App is the “window” to our MPM planet.
Stretch Dollar is key to the value proposition of MPM planet.
New business models and concepts to be launched in 2H17.
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2Q17 KEY EVENTS
FKT was recognized by the HR Asia Award as HR Asia Best Companies to work for in Asia 2017
Apr’17
MPMInsurance awarded 1st for Best General Insurance Award for companies with Rp 150-250 billion equity by Media Asuransi
May ’17
FKT received Superbrands 2017 award for category Automotive Lubricants
Jun’17 Jun’17
MPMulia launched All New Honda Scoopy in Surabaya
Jun’17
MPM is ranked 32nd in Most Valuable Indonesian Brands 2017 with a US$ 181 mio Brand Value & A Brand Rating from SWA Magazine
MPM Group named Top 5 Best at Investor Relations by FinanceAsia
Jul’17 Jul’17
MPMFinance rank 2nd for Best Multifinance Company for category Asset under 5T by Infobank
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TABLE OF CONTENT
01 MPM: Company Highlights
02 Consolidated Financial Results: 1H 17 Updates
03 Business Segment Performance
18
1H16 1H17
Sales Volume (Unit in thousands, YoY%)
902 912 863
FY15 FY16 TTM
-5%
Revenue (in Billions of Rupiah, YoY%)
+1%
261 338 330
FY15 FY16 TTM
+30%
Mulia
129 132 131
FY15 FY16 TTM
+2%
MSO
FY15 FY16 TTM
14,459 13,961
+7%
13,544
-0%
-3%
-2% NPAT (in Billions of Rupiah, YoY%)
1H17 Highlights
o Lower sales volume was driven by slow harvest, increase in
vehicle registrations and earlier Lebaran break.
o NPAT fell marginally in line with lower revenue for the period
Key Initiatives
o Launch of 6 new models and revamped 11 models during 2017.
o Increase in promotional activities to consumer, dealers and
financing companies.
o Built the third warehouse to lower rental costs and optimize
distribution.
2W DISTRIBUTION & RETAIL : CONTINUE LEADERSHIP IN E. JAVA AND NTT
1H16 1H17
1H16 1H17
1H16 1H17
455 406
63 63
6,673 7,172
-11%
-1%
-7%
-5%
149 157
Mulia + MSO
Mulia + MSO
19
-85 -102 -96
4W DEALERSHIP : IMPROVE SALES PRODUCTIVITY & SERVICE LEVEL
Sales Volume (Units, YoY%) 1H17 Highlights
o Intense competition in the 4W market and the decline in
market attractiveness of Nissan and Datsun brand from
lack of new products contributed to the fall in sales.
o Number of dealerships is also lower as compared to last
year due to scaling down of operations.
Key Initiatives
o Focus on operational efficiency and sales productivity as
well as after-sales service quality to the customers.
FY15 FY16 TTM
-43% +29%
-19%
260
-10%
9,823
NPAT (in Billions of Rupiah, YoY%)
Revenue (in Billions of Rupiah, YoY%)
FY15 FY16 TTM
FY15 FY16 TTM
773 502
+20%
643 -35%
1H16 1H17
1H16 1H17
480
-48 -32
1H16 1H17
3,078 1,023
209
-67%
-57%
-22%
3,680 4,755 2,700
48 -16* -16*
*One-off loss from sale of fixed asset.
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1H16 1H17
-6%
CONSUMER PARTS: STRENGTHEN CHANNEL & NEW PRODUCT DEVELOPMENT
o Shorter working days in June impacted the sales volume.
o Gross margin remain stable though revenue was slightly lower.
o NPAT was lower due to the lower revenue and less finance
income.
Key Initiatives
o Federal Oil (2W)
o Strengthen channel development
o Increase product quality
o Federal Mobil (4W)
o Focus on market growth outside of Jakarta and Surabaya
o Improve B2B channels
Sales Volume (Units in thousand litres, YoY%)
FY15 FY16 TTM
+7%
260 9,823
NPAT (in Billions of Rupiah, YoY%)
Revenue (in Billions of Rupiah, YoY%)
-3%
FY15 FY16 TTM
1,675 1,629 1,582
-3%
59,200 63,341 61,297
-7%
1H17 Highlights
1H16 1H17
-6%
30,002
-10%
48
253
+6%
32,046
845 799
272 254
TTM FY16 FY15 1H16 1H17
-12% 153 135
21
+103% 1 15
-33
1H17 Highlights
AUTO SERVICES: MAINTAIN OPERATIONAL EXCELLENCE & CASH FLOW
o Higher revenue was driven by stable rental business and higher disposal value of used cars.
o Higher NPAT driven by OPEX efficiencies and finance cost saving.
Key Initiatives
o Continuous improvement on operational efficiency and productivity of the fleet.
o Improve the portfolio of corporate clients, including new offerings to customers.
Fleet Size (Units, YoY%)
FY15 FY16 TTM
+1%
260
NPAT (in Billions of Rupiah, YoY%)
Revenue (in Billions of Rupiah, YoY%)
-6%
FY15 FY16 TTM
1,091 1,197 1,123
-3% +10%
13,935 14,137 13,327
+1,318%
1H16 1H17
-6%
1H16 1H17
+19%
547
12 25
1H16 1H17
+114%
14,334 13,524
TTM FY16 FY15
653
22
31 41 51
FY15 FY16 TTM
FY15 FY16 TTM
385 393
259
41 42
1H17 Highlights
MPMINSURANCE: INCREASE PENETRATION GROUP & NON-GROUP BUSINESSES
Gross Premium (in Billions of Rupiah, YoY%)
+49%
31 9,823
NPAT (in Billions of Rupiah, YoY%)
+2%
+32% +24%
204 212
1H16 1H17
20 30
1H16 1H17
+51%
+4%
o Gross premium grew steadily driven by increase in new policies especially for the MV segment.
o NPAT increased in 1H17 primarily due to higher underwriting and investment income.
Key Initiatives
o Increase market penetration in MPM Group business as well as non-affiliated businesses.
o Plans to increase network penetration via opening up new branches (Pontianak and Lampung).
o Working together closely with strategic brokers both online and offline to grow portfolio and acquire new clients.
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1H17 Highlights
1,185 1,226
1,164
+2% +3%
MPMFINANCE: SELECTIVE GROWTH WHILE MAINTAINING FOCUS ON ASSET QUALITY
o Asset quality improved YoY basis as reflected by NPL level.
o New Booking growth was driven by new 4W financing through strengthening relationship with various dealers.
o Increased NPAT was due to higher gross profit and improved asset quality.
New Booking (in Billions of Rupiah, YoY%)
FY15 FY16 TTM
+37%
9,823 NPAT (in Billions of Rupiah, YoY%)
Revenue (in Billions of Rupiah, YoY%)
+18%
2,934 4,015 4,728
Key Initiatives
o Continuously monitor and manage asset quality by implementing early warning system across network.
o Diversify and optimize source of funding to ensure competitive pricing.
1H16 1H17
+40%
2,522
1H16 1H17
588
82 128
27
+198% +56%
2 48 1H16 1H17
+2,313%
1,808
+8%
547
TTM FY16 FY15
TTM FY16 FY15
3.3% 3.2% 3.2% 2.7% 2.3% 2.60%
Mar'16 Jun'16 Sep'16 Dec'16 Mar'17 Jun'17
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DISCLAIMER • These materials have been prepared by PT Mitra Pinasthika Mustika Tbk (the
“Company”, “MPM”) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. The Company or any of its affiliates, advisers or representatives accepts no liability whatsoever for any loss howsoever arising from any information presented or contained in these materials. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed.
• These materials may contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as “expects,” “plan,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances.
• These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice.
Thank You