q2 2018 / 1h 2018 earnings call 31 july 2018...

1Q2 2018 / 1H 2018 Earnings Call 31 July 2018

Contents

Indonesia Macro Overview 4

Q2 2018/ 1H 2018

Key Financial Highlights 6

Sales and DP/CV Mix 7

Same Store Sales Growth 8

Regional GDP, Sales and SSSG 9

Gross Profit and Margin 10

OPEX 11

EBITDA and Margin 12

Net Income and Margin 13

Inventory and Cash Position 14

Operational & Strategic Updates

Store Network 16

Mataharistore.com 17

Summary 18

Appendix

Shareholding Structure 20

2

3Indonesian Macro Overview

4

4.17%

4.33%

4.37%

3.88%

3.82%

3.72%

3.58%

3.30%

3.61%

3.25%

3.18%

3.40%

3.41%

3.23%

3.12%

Ap

r-1

7

Ma

y-1

7

Ju

n-1

7

Ju

l-1

7

Au

g-1

7

Se

p-1

7

Oct-

17

No

v-1

7

De

c-1

7

Ja

n-1

8

Feb

-18

Ma

r-1

8

Ap

r-1

8

Ma

y-1

8

Ju

n-1

8

5.14%

5.03%4.92%

5.01%

4.71%

4.67% 4.73%

5.04%

4.92%

5.18%

5.02%

4.94% 5.01%

5.01%5.06%

5.19%

5.06%

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

115.3117.1

121.5

123.7125.9

122.4

123.4

121.9

123.8

120.7

122.1

126.4126.1

122.5121.6

122.2

125.1

128.1

Ja

n-1

7

Feb

-17

Ma

r-1

7

Ap

r-1

7

Ma

y…

Ju

n-1

7

Ju

l-1

7

Au

g-…

Se

p-…

Oct-

17

No

v-…

De

c-…

Ja

n-1

8

Feb

-18

Ma

r-1

8

Ap

r-1

8

Ma

y…

Ju

n-1

8

Inflation

Consumer Confidence Index

Source: Bank Indonesia and BPS

Indonesian economy at a glance

GDP Growth

.

5Q2 2018 Financials

1st HALF

(in Rp Bn) 2017 2018 YoY

Gross Sales 10,017 10,370 +3.5%

SSSG 8.0% 4.6%

Gross Profit 3,615 3,744 +3.6%

EBITDA 1,859 1,884 +1.4%

Net Income 1,338 1,345 +0.5%

Gross Margin 36.1% 36.1% 0 bps

EBITDA Margin 18.6% 18.2% -40 bps

Net Margin 13.4% 13.0% -40 bps

Key Financial Highlights

6

2ND QUARTER

(in Rp Bn) 2017 2018 YoY

Gross Sales 6,802 7,002 +2.9%

SSSG 14.6% 4.5%

Gross Profit 2,450 2,526 +3.1%

EBITDA 1,470 1,486 +1.1%

Net Income 1,094 1,098 +0.4%

Gross Margin 36.0% 36.1% +10 bps

EBITDA Margin 21.6% 21.2% -40 bps

Net Margin 16.1% 15.7% -40 bps

Total sales continue to grow

Sales

7

FY ‘16 FY ‘17

DP 37.0% 37.2%

CV 63.0% 62.8%

17,294 17,496

Q2 ‘17 Q2 ‘18

DP 37.2% 36.6%

CV 62.8% 63.4%

6,802 7,002

1H ‘17 1H ‘18

DP 37.1% 37.1%

CV 62.9% 62.9%

10,016 10,370

SSSG %

SSSG was 4.5% in Q2 2018 and 4.6% in 1H 2018

8

14.6%

4.5%

Q2' 17 Q2' 18

8.0%

4.6%

1H' 17 1H' 18

5.5%

-1.2%

FY ‘16 FY ‘17

9

East Java

Sumatra

Bali and East Indonesia

West Java

Greater Jakarta

Central Java

Gross Sales by Region

(%)

Q2 2018 1H 2018

Greater Jakarta 26.7% 26.8%

Java exc Jkt 36.3% 35.5%

Outside Java 37.0% 37.8%

Total Sales 100.0% 100.0%

Outside Java outperformed the other regions

Kalimantan

Note: Regional GDP as of Q1 2018

Source: Bank Indonesia for GDP growth

SSSG Greater Jkt

Q2 : 3.5%

1H : 4.3%

SSSG Java

Q2 : 3.8%

1H : 3.4%

SSSG Outside Java

Q2 : 6.0%

1H : 5.9%

> 7%

6% < GDP ≤ 7%

5% < GDP ≤ 6%

4% < GDP ≤ 5%

GDP ≤ 4%

Negative

2,450 2,526

Q2' 17 Q2' 18

Gross profit and margins

IDR Bn

Merchandise margins increased in Q2, flat in 1H

+10 bps

Gross profit as a % of Gross Sales

10

3,6153,744

1H '17 1H '18

36.0% 36.1% 36.1% 36.1%

6,146 6,203

FY' 16 FY' 17

35.5% 35.5% 0 bps0 bps

14.4%14.9%

Q2' 17 Q2' 18

10.9% 10.7%

2Q' 17 2Q' 18

Opex(1) as a % of Gross Sales

Store opex leverages, overall marketing spend up over last year

Note

1. Opex calculated as Adjusted Gross Profit less Adjusted EBITDA

11

Total Company

Total Company Comp store

13.5% 13.3%

1H' 17 1H' 18

17.5%

17.9%

1H' 17 1H' 18

18.9%

19.4%

FY' 16 FY' 17

2,872 2,808

FY' 16 FY' 17

1,470 1,486

Q2' 17 Q2' 18

EBITDA and Margins

IDR Bn

Operating EBTDA up 1.4% for 1H 2018

EBITDA as a % of Gross Sales

12

Notes

EBITDA adjusted for severance pay

1,859 1,884

1H' 17 1H' 18

16.6% 16.0% 21.6% 21.2% 18.6% 18.2%-40 bps -40 bps-60 bps

Net income up by 0.4% in 2Q 2018 and 0.5% in 1H 2018

13

Net Income as a % of Gross Sales

1,094 1,098

Q2' 17 Q2' 18

7.6%

Net Income (IDR Bn)

1,338 1,345

1H' 17 1H' 187.6%

2,0201,907

FY' 16 FY' 17

16.1% 15.7% 13.4% 13.0%11.7% 10.9%-80 bps -40 bps -40 bps

Post Lebaran cash on hand is Rp 2.5T

14

INVENTORY DAYS, CASH POSITION AND OUTSTANDING BANK LOAN BALANCE

(in IDR Bn) End of Mar 2018 End June 2018

LTM Ave. Inventory Days 120 days 123 days

Cash on Hand Rp 1,106 Bn Rp 2,502 bn

Outstanding Bank Loan Balance Rp 0 Rp 0

CAPEX AND REFURBISHMENTS

(in IDR Bn) FY 2017 FY 2018E

Capex Rp 323 Bn Rp 350-450 Bn

Refurbishments 16 10-20

Operational and Strategic Updates15

o Opened 2 new stores in Q2

o May: Mamuju, Sulawesi (new city)

o May: Cilegon, West Java

o Closed 1store in Q2

o Apr: Medan, Sumatra (Lease expiry)

o Will open 1-2 more new stores in 2H18

FY2018 expansion plans

16

28.5% 28.0% 27.5% 27.5% 28.5% 25.8%

36.2% 35.2% 32.8% 32.4% 31.1% 33.5%

35.3% 36.8% 39.7% 40.1% 40.4% 40.6%

2012 2013 2014 2015 2016 2017

Greater Jakarta Java exc Jkt

No Geographic area

Actual FY2018 Forecast

FY2017 Q2 2018 Balance Future Pipeline 2019 and onwards

# of stores # of stores # of stores # of stores % mix

1 Jabodetabek (Greater Jakarta) 40 40 0 6 15.8%

2 Java (Exc Greater Jakarta) 52 52 1-2 13 34.2%

3 Outside Java 63 63 0 19 50.0%

Total 155 155 1-2 38 100.0%

Store Count Split by Region

Matahari.com performance update

17

Sales by Region – Online (Q2 2018)

Sales by Category - Offline (Q2 2018)

Greater Jakarta, 38.5%

Java excl. G. Jkt, 52.9%

Outside Java, 8.6%

Men/ Youth boy, 36.5%

Ladies/ youth girl,

23.5%

Shoes, 19.3%

Children, 19.1%

Bags/ accessories,

5.3%

Cosmetics, 0.1%

Others, 3.4%

Sales by Category - Online (Q2 2018)

MATAHARI.COM

Q2 ’18

Sales growth (QoQ) 32%

Basket size growth (QoQ) 46%

Men/youth boy, 33.5%

Shoes, 19.0%

Ladies/youth girl, 18.4% Children,

18.5%

Cosmetics, 4.7%

Bags/Accessories, 1.7%

Others, 4.2%

Same store sales growth in Q2 was 4.5% and gross margin rose 10 bps following a tighter

and more selective promotions strategy

Total same store sales growth for the 1st half was 4.6%

Our new merchandising initiatives continue to gain traction

2018 new stores are now seen at 3-4 stores for the year

Our Online business is on track to double sales from last year

“Mataharistore.com” has been rebranded to “Matahari.com”, with the new app to be

launched by the end of this year

Summary

18

19Appendix

20

82.5% 17.5%

PT Matahari Department Store Tbk

Public Multipolar

Shareholding Structure

Notes

21

Notes

22