9M19 EARNINGS CALL

November 2019
0
360º RETAILING

TOUCHING THE LIFE OF EVERY

MIDDLE CLASS INDONESIAN
ALL PRODUCT CATEGORIES – UNLIMITED POTENTIAL!
• Sports & Leisure • F&B and • Travel & Luggage
• Fashion & Lifestyle Entertainment • Books & Stationaries
• Departement Stores & • Café & Restaurants • Accessories &
Supermarket • Gifts & Sourvenirs Jewelleries
• Kids & Toys • Health & Beauty • Digital Solution /
• Indonesian handycrafts • Home & Living Products, etc
• Batik
OUR CONSUMERS:
MIDDLE TO HIGH INCOME GROUP
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OUR PRESENCE

76 Cities in Indonesia >30k >130

2 Cities in Vietnam Employees (as of Brands under
Sept 19, included our portfolio
1 City in Thailand BK and DP) >2,200 Stores

NET SALES CONTRIBUTION BY REGION – PER SEP’19

2%

6%
Jakarta
15%
Java ex-Jakarta
Outside Java Island
57%
20% Vietnam
Thailand

2
STORE COUNT and SPACE

As per Sep’19 No. of Store Space (SQM)

Total MAP & Subsidiaries 2,243 850,676

Department Store 51 347,943
Specialty Store
(Active & Fashion) 1,540 371,392
Food & Beverage 523 112,798
Others 129 18,553
* Excluding Burger King: 149 stores and Domino’s Pizza: 127 stores

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NET REVENUE and SSSG (IDR bn, %)
Sales Growth +10.3% +15.2% +16.0% +11.4%
SSSG 4% 3% 4% 8% 8% 3%

18,921

16,306
15,410 Net revenue YoY growth SSSG
14,150 13,828
12,833
1Q19 4,679.9 8.4% 2%

2Q19 5,336.5 11.7% 4%

3Q19 5,393.5 13.9% 2%

9M19 15,409.9 11.4% 3%

2015 2016 2017 2018 9M 18 9M 19

The net revenue rose by 11.4% YoY in 9M19 on the back of 3% consolidated SSSG
and on track expansion, supported by resilient market, better merchandising and healthy inventory level.

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PROFITABILITY (IDR bn, %)
EBIT OPEX TO SALES RATIO

EBITDA
Margin 8.7% 10.8% 11.2% 12.1% 11.9% 12.8%

EBIT Margin 4.1% 6.3% 6.9% 8.0% 7.7% 8.7%

1,506 42.7%
42.3%
1,342

1,121 41.3%
1,062
888
39.9%
39.4%
39.1%
523

2015 2016 2017 2018 9M 18 9M 19 2015 2016 2017 2018 9M 18 9M 19

The continuous improvement on opex-to-sales ratio in the last 5 years resulting in expansion of both
EBIT and EBITDA margin was expanded by 100bps and 90bps YoY, respectively.
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PROFITABILITY (IDR bn, %)
NET PROFIT NORMALIZED NET PROFIT

Normalized
NPM 0.2% 1.5% 2.1% 4.3% 4.3% 5.3% NPM 0.2% 1.9% 3.4% 4.7% 4.7% 5.5%

814 813 889

846

588 644
551

350

266
208

30 30

2015 2016 2017 2018 9M18 9M19 2015 2016 2017 2018 9M18 9M19

Overall improvement in efficiency and productivity combined with better merchandising mix
and focus on top performing brands led to 100 bps improvement on track with our guidance.
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INVENTORY and CASH FLOW

200 60%

180 173
157 50%
160
41% 40%
140 129
119 40%
115
120

100
29% 30%
25% 26%
80
20%
60

40
10%
20

0 0%
2015 2016 2017 2018 9M 19

Aging Inventory (> 6 months) Inventory Days

Over the years, we have been able to improve our inventory level to 119 days.
More positive outcome from better inventory management.
More-than-6 month aging inventory is remain stable at only 26%, comparable with global benchmark.
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DEBT and LEVERAGE (IDR bn)
Net Debt to Equity Ratio 71% 29% 21% 9% 9%
Blended Cost of Fund 10.7% 10.4% 8.8% 9.8% 7.8%

2,615
2,469

2,189

1,930

1,484

2015 2016 2017 2018 9M 19

Our net debt to equity ratio has been down to 9% as per September 2019 following
stronger cash flow and lower blended cost of fund by 200 bps from 9.8% to 7.8%.
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SEGMENTAL CONTRIBUTION
REVENUE & EBIT CONTRIBUTION (%) SEGMENT

120%

100%
10%
9% Department
Dept. Store
Store
80%

Specialty
Specialty Store Store
60% (Active & Fashion)
71% 84%

40%
Food &
Food & Beverage
Beverage
20%
15%
4% 11%
0% Others Others
-4%
REVENUE EBIT

-20%

Our specialty store remained the major contributor of revenue and EBIT.

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BUSINESS UNIT PERFORMANCE

Department
DEPT STORE SPECIALTY
Specialty Store F&B
Food & OTHERS
Others
Store (Active & Fashion) Beverage

9M18 9M19 9M18 9M19 9M18 9M19 9M18 9M19

Net sales (IDR bn) 1,752 1,532 9,854 11,015 1,886 2,236 336 626
%YoY growth -12.6% 11.8% 18.6% 86.5%
SSSG (%) 5% 2% 10% 3% 7% 4% 5% -1%
GPM (%) 53% 53% 40% 41% 72% 72% 38% 25%
EBIT Margin (%) 9% 8% 9% 10% 7% 6% -16% -8%
EBITDA Margin (%) 14% 15% 12% 13% 14% 14% -15% -7%

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PROFIT & LOSS
( In IDR bn)
Growth
9M 19 9M 18 FY 18 FY 17
YoY (%)

NET REVENUE 15,410 13,828 11.4% 18,921 16,306

GROSS PROFIT 7,410 6,472 14.5% 9,052 7,856

% margin 48.1% 46.8% 47.8% 48.2%
EBITDA 1,976 1,646 20.1% 2,296 1,824

% margin 12.8% 11.9% 12,1% 11.2%

OPERATING INCOME 1,342 1,062 26.4% 1,506 1,121

% margin 8.7% 7.7% 8,0% 6.9%

Financing charges -162 -463 -536 -404

Gain (Loss) on Forex -1 -7 36 12
Gain (Loss) on sale of FA -14 239 216 -79
Others -66 -20 -47 -52
Tax -286 -223 -360 -247

NET INCOME 813 588 38.2% 814 350

% margin 5.3% 4.3% 4.3% 2.2%

NORMALIZED NET INCOME 846 644 31.4% 889 551

% margin 5.5% 4.7% 4.7% 3.4%

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BALANCE SHEET
( In IDR bn) UN-AUDITED AUDITED

9M 19 FY 2018 FY 2017

CASH & CASH EQUIVALENT 882 1,412 1,286

OTHER FINANCIAL ASSETS 866 759 555
ACCOUNT RECEIVABLES 552 702 709
ASSETS

INVENTORIES 3,872 3,231 3,066

ADVANCES 315 293 380
PREPAID EXPENSES 1,009 871 828
PROPERTY, PLAN & EQUIPMENT - NET 4,234 4,034 3,427
REFUNDABLE DEPOSIT & OTHERS 1,339 1,332 1,175

TOTAL ASSETS 13,069 12,632 11,425

BANK LOAN, BONDS PAYABLE & LEASED
AND EQUITY
LIABILITIES

PAYABLE 1,861 2,753 3,534

ACCOUNT PAYABLE 2,349 2,018 1,990
ACCRUED EXPENSES & TAX PAYABLE 580 717 555
POST-EMPLOYMENT BENEFITS OBLIGATION 629 574 568
OTHERS 594 508 537

TOTAL LIABILITIES 6,014 6,570 7,183

MINORITY INTEREST 1,137 610 205

EQUITY 5,918 5,452 4,038

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FUTURE GROWTH STRATEGY

1 2 3
Closely monitoring
• Prudent Prioritizing more strategic
investment based Active, opportunities
on certain ROI Beauty and within ASEAN
• Focus on Cosmetics, region, after
efficiency, F & B particularly successful
productivity and Starbucks and launch
SSSG Genki Sushi and of Inditex brands
Omni – Channel and Active
in Vietnam
market.

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" This presentation material contains the latest financial information, business strategies and the prospective financial information of the Company. The business strategies are subject to
changes due to uncertainties that could affect the business of the Company and are not within the Company's control. The prospective financial information is prepared based on the
assumption made by the Company and is presented on a basis consistent with the accounting policies adopted by the Company and it reflects the current reasonable judgment of the
Company regarding the expected conditions. The prospective financial information is based on a number of assumptions which are inherently subject to significant uncertainty due to factors,
which are not within the Company's control. The Company's actual result may differ from such forecast and such differences may be material. Under no circumstances should this prospective
financial information be regarded as a representation or warranty with respect to the achievement by the Company of any particular result and there can be no assurance that the business
strategies will not vary." 14