PT Mega Manunggal Property Tbk

Transcription

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6 Section 1 Who We Are 6

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9 Bonny Budi Setiawan President Director PT Mega Manunggal Property Tbk Has has been the Company s Director since 2015 and appointed as the President Director in January Earned a Bachelor of Business Administration in Accounting and Finance from Simon Fraser University, Canada (1997). Previously served as Executive Director of PT UBS Securities Indonesia ( ); Senior Vice President of PT Danareksa Sekuritas, Jakarta ( ); Vice President of Research Division of PT Danareksa Sekuritas in Jakarta ( ); Vice President of Research Division of Merrill Lynch, Jakarta ( ); Vice President of Research Division of PT CIMB-GK Securities, Assistant Vice President of research division of PT Danareksa Sekuritas ( ); Supervisor Consultant Financial Advisory Services (FAS) of Prijohandojo Boentoro & Co. ( ); Research Analyst of PT Panin Sekuritas ( ) and Export Supervisor of PT Pabrik Kertas Tjiwi Kimia ( ). Timothy Eugene Alamsyah Independent Director Has been appointed as the Independent Director since He is in charge of finance division. He earned Economics and Finance Bachelor s degree from University of Melbourne, Australia in He was Chief Financial Officer for PT Nirvana Development ( ), Corporate Secretary / Director for PT Nirvana Development ( ), Analyst for PT Trimegah Securities ( May 2015 September 2015), Analyst for PT UBS Securities Indonesia ( ). Loa Siong Lie Independent Director Has been appointed as the Independent Director since He is in charge of technical and construction. He earned Civil Engineering Bachelor s degree from University of Tarumanegara, Jakarta in He was Project Manager for PT Sinar Menara Deli ( ), Project Manager for PT Supra Megah Utama ( ), Site Manager for PT Pradani Sukses Abadi ( ), Site Manager for PT Intersatria Budi Karya Pratama ( ). Construction Manager for PT Praga Artamida ( ). 9

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15 DKI Jakarta (Jatiwarana) BEST Operational Contract signed In construction Negotiation/tender (Cimanggis) Jawa Barat 15

16 Others 3% E-commerce 19% Logistics 35% Manufacture 43% 16

17 Section 2 Growth Strategy 17

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23 Section 3 On The Right Track 23

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25 Pipelines (NLA sqm) complected under construction pipelines 330k 143k 31k 164k 440k 106k 230k 274k 338k E 25

26 3, % 2, , , % 17.1% 18.7% 2, % 19.4% 17.0% 20.0% 1, , , % , , , % 9.1% 8.7% , , % 9.1% 15.0% 10.0% 5.0% Q1 '18 (LTM/Annualised) IP at cost (Rp bn) IP at current value (Rp bn) Yield to cost Yield to current value 0.0% 26

27 1, E Additional EBITDA Total EBITDA 27

28 Section 4 Strong Growth Opportunity 28

29 The logistics sector in Indonesia remains nascent in comparison to other markets in the region, particularly compared to more mature markets such as Singapore and Australia. Notwithstanding this, the growth potential is huge and there are signs of a fundamental imbalance between available supply and demand for modern logistics warehousing space. We expect to see the Indonesian logistics market evolve into a modern logistics hub in the same way the sector has evolved in other markets regionally and globally. 29

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32 Economic Growth and Scale Recent disruptions in the commodities markets hit the Indonesian economy hard, but government spending began to pick up in 2015, economic growth started to improve and Indonesia remains the largest economy in Southeast Asia or 16th globally. Annual GDP growth has averaged 5.8% over the past 10 years and historically, domestic consumption has driven the national economy. Indonesia weathered the global economic turmoil in 2008 better than most neighboring countries due to domestic demand. The current administration is now spearheading a shift to further stimulate growth through investment. 32

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37 Toll Roads Railways Airports This will positively affect the process of delivering goods and services for tenant companies, which becomes competitive advantage for warehouse investment 37

38 In the near future, Gresik, Sidoarjo, and Surabaya will become our expansion target Greater Surabaya Key Industry Served :FMCG, FnB, Electronic, Chemicals 21 Km Tanjung Perak Port 6 Km 22 Km Juanda air Port 35 Km In terms of land prices and availability, Gresik and Sidoarjo seem potential for warehouse location. It offers effective route to airport and port which could be added value for our future tenant. 38

39 Healthy Growth in FMCGs and Retail Urbanisation and growing wealth is already translating into growth in the FMCG sector and retail sales. This will increase the appeal of the logistics real estate market to a broader spectrum of modern international logistics players. Indonesia has a robust manufacturing sector Indonesia has a large manufacturing base driven by a large domestic consumer market and low labour costs. The robust manufacturing sector is another major driver of demand for logistics services and associated real estate. In 2015, manufacturing accounted for 22% of GDP. 39

40 Indonesia Manufacturing Industry Snapshot PT Mega Manunggal Property Tbk Growth Drivers 1. Positive demographics profile 2. Robust economic growth 3. Large number of middle income class 4. High degree of consumption Market Restraints 1. Slowing in global economy 2. Poor logistics infrastructure 3. High logistics cost 4. Regulation Manufacturing Industry GDP Value, , IDR Trillions Food and Beverage Manufacturing Sector GDP Value, , IDR Trillions 2,405 2,622 2,858 3,115 3,395 3, % 910 1,020 1, The growing economy will further amplify the manufacturing industry, especially food & beverages that will create bigger demand of warehousing 40

41 Growth Drivers 1. Positive demographics profile 2. Robust economic growth 3. High ICT adoption 4. Large number of local players Market Restraints 1. Poor logistics infrastructure 2. Large unbanked population 3. Low adoption of cashless payment 4. Limited ICT competency Indonesia e-commerce Market Size, , USD Millions 31.1% 41

42 Greater Jakarta GDRP by Key Industries, 2015 (% of GDRP) IDR Tn Wholesale, retail, and automotive sector was 17.0 percent of 2015 GDRP equivalent to IDR Trillion Investment in existing infrastructure, mainly on toll roads, will further amplify logistics efficiency for wholesale and retail companies in Indonesia, which include time and cost reducing 42

43 Growth of Service Segment (f) Government investment plan and initiatives on infrastructure sector are expected to reach IDR 313 trillion in 2016, approximately 8.0% increase from GDP s share for transport, storage and courier is estimated grow around 38.0 percent in 2016 at IDR 798 trillion. where 23 share percent accounts for warehousing Source: World Bank, Indonesian Statistical Agency, Frost & Sullivan 43

44 Indonesia continues to be an attractive target for FDI PT Mega Manunggal Property Tbk Competitive wages and large domestic market makes Indonesia to be an attractive target for FDI in ASEAN Resilient economy growth and large domestic market are expected to boost investment in Indonesia Low growth, large domestic market High growth, large domestic market 30% Middle and above 47% Below middle Low growth, small domestic market Low growth, small domestic market 70% Below middle 53% Middle and above Indonesian population is becoming wealthier and consumption is expected to increase. By 2020, more than half of the population is expected to be middle class or above Source: JLL Jakarta s Historical Minimum Wage Rp 50.00% 40.00% 30.00% 20.00% 10.00% 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 Jakarta minimum wage increased 17.9% per year on average, which will imply in higher labour cost due to higher inflation rate. Productivity issue is assumed to be constant. Abundant amount of working-age population will increase labour availability in the long-term. The composition also shows that male workers are dominating in working-age population. 0.00% Minimum Wage Increase in PMW 44

45 USD/sqm PT Mega Manunggal Property Tbk This shows that demand for warehouse complex in Jabodetabek area is still growing, which this will be great opportunity to invest in the area. Stable land prices over the year encourages acquisition of new lands to satisfy the growing demand in the industry property Warehouse Demand Index, (Quarterly) Increase 9% in Q from Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4e Greater Jakarta Industrial Land Price Source: Central Bank of Indonesia; Frost & Sullivan Analysis Bogor Bekasi Tangerang Karawang Source: Analysis by Frost & Sullivan 45

46 The Indonesian population has a large online presence. Internet and mobile internet traffic has increased significantly. While the e-commerce phenomenon has taken hold in many other markets in the region, the sector is still in its infancy in Indonesia and the potential future growth also presents an opportunity. 46

47 Section 5 Key Financial 47

48 350, , , , , ,000 50, % 99.9% 300, % 230, % 97.2% 163, , , , % Q Net Leasable Area (m2) Occupancy Rate (%) 101.0% 100.0% 99.0% 98.0% 97.0% 96.0% 95.0% 94.0% 93.0% 92.0% 91.0% 48

49 (Rp bn) Q1 18 Q1 17 Y/Y Revenues % Operating profit % Finance Costs (43.9) (51.8) (46.8) (52.3) (8.6) (9.7) -11.6% Forex gain / loss net (15.2) (28.9) 3.3 (0.8) (2.1) % Changes in fair value of PI Profit before tax % Income tax (14.2) (16.3) (17.6) (20.9) (6.8) (4.4) 53.3% Net income (loss) % 3, , , , , % 17.1% 18.7% 19.2% 19.4% 9.0% 8.3% 9.1% 8.7% 9.1% 9.1% Q1 '18 (LTM/Annualised) IP at cost (Rp bn) IP at current value (Rp bn) Yield to cost Yield to current value 17.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 49

50 (Rp bn) Q1 18 Cash and cash equivalent , x 0.70x Current asset (a) , x Investment properties 1,749 2,037 2,388 3,319 4,592 Non current asset (b) 1,751 2,056 2,685 3,766 4,972 2, x 0.50x Total asset (a+b) 1,840 2,139 3,204 3,966 5,363 2, x Short term liabilities (c) Long term liabilities (d) Debt Total liabilities (c+d) ,500 1, x 0.16x 0.11x 0.11x 0.30x 0.20x 0.10x Paid in capital Retained earnings ,273 1, x Total equity 868 1,448 2,551 3,284 4,670 50

51 EBITDA 4,670 5,007 1, ,551 3, , Q1 17 Q1 18 Capex (Rp bn) 51

52 Q 18 Net Leasable Area, m2 Built to suit 111, , , , , ,325 Multi tenants 27,911 51,857 52,011 52,011 50, ,325 Operational metric Total, m2 139, , , , , ,680 Occupancy rate, % Built to suit 100% 98% 97% 100% 100% 100% Multi tenants 84% 87% 98% 100% 99% 99.8% Average occupancy rate, % 97.0% 94.0% 97.0% 100.0% 99.9% 99.9% Average remaining lease term, years Revenue, Rp bn Revenue by segment Rental built to suit 94,931 99,160 99, , ,015 46,228 Rental multi tenants 24,555 42,758 63,570 69,006 72,452 21,730 Total revenues, Rp bn 119, , , , ,467 67, Multi tenants 38% 150 Built to suit 62% Q17 1Q18 Built to suit Multi Tenants 52

53 Section 6 Assets in Details 53

54 Soekarno-Hatta Int l Airport Airport warehouse Tanjung Priok Seaport Pondok Ungu warehouse Industrial Estate Ex pansion Area Intirub Business Park Halim PK Airport MM2100 Jababeka LF Warehouse Cibatu Warehouse Delta Silicon Selayar Warehouse Block AE Unilever Warehouse Warehouse Block H Warehouse Lazada Warehouse Cileungsi Warehouse Toll Road in operation Toll Road under construction 54

55 MMP properties Tanjung Perak Port Juanda Air Port Toll Roads In Operation Under construction Planning In (Km) Manyar Warehouse Distance to Surabaya 31 Distance to Airport 52 Distance to Tanjung Perak Port 29 55

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62 Building value delivering result PT Mega Manunggal Property Tbk 62

63 Cawang Intersection Cikunir Intersection MM2100 Industrial Estate 63

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65 Section 7 Other Financial Info 65

66 Year to Dec 31, Rp mn *Q1 18 % YTD Cash and Equivalents 6,368 11, , , , , % Other current assets 72,054 57, ,100 92, , , % Property & equipment 1,236 2,107 13,483 13,342 12,327 11, % Investment properties 1,748,426 2,036,806 2,388,400 3,318,776 4,592,009 4,971, % Other non-current assets 1,469 17, , , , , % Total assets 1,840,010 2,138,502 3,204,321 3,965,769 5,363,669 5,747, % ST unearned revenue 23,932 23,528 25,281 42,641 25,398 48, % Bank loans - short term 181,547 35, ,911 89, , , % Other current liabilities 398,923 77,433 25, , , , % Bank loan 360, , , , , , % LT unearned revenue ,743 10,725 23, % Other long term liabilities 6,924 12,762 17,180 15,717 27,081 28, % Total Liabilities 971, , , , , , % Minority interest - 2,673 2, , ,106 1,195, % Equity 868,242 1,445,182 2,548,111 2,890,585 4,670,189 5,007, % *) : Unaudited 66

67 Year to Dec 31, Rp mn *Q1 18 *Q1 17 % Y/Y Revenue 119, , , , ,794 67,958 44, % Cost of revenue 5,940 13,084 16,059 18,444 20,146 (5,718) (4,702) 21.6% Gross profit 113, , , , ,647 62,234 39, % G&A 7,944 14,616 25,754 39,143 46,202 (10,485) (7,681) 36.5% Operating profit 105, , , , ,445 51,755 31, % EBITDA 106, , , , ,984 52,706 32, % Net interest income (expense) (35,991) (42,818) (23,640) (29,262) (47,363) (8,592) (9,720) -11.6% Increase in fair value Invt Prop 222, ,127 64, , , % Other items (117,848) (23,165) 31,822 5,073 (1,272) (2,253) 1, % Profit before tax 174, , , , ,051 40,910 23, % Tax (12,201) (14,192) (16,349) (17,624) (20,986) (6,821 ) (4,449) 53.3% Proforma adjustment (71,454) (8,482) Net income 90, , , , ,262 34,090 19, % *) : Unaudited 67

68 Rp mn *Q1 18 *Q1 17 % Y/Y Cash flow from operating activities Cash Receipt from Customer 221, ,867 84, , % Payment to Supplier and Others (53,098) (131,671) (32,371) (20.011) 61.8% Tax paid (20,404) (20,594) (7,916) (10,190) -22.3% Interest paid (49,175) (52,925) (8,309) (10,427) -20.3% Net cash provided by operating activities 80,352 (15,754) 35,821 69, % Cash flow from investing activities Acquisition of Investment Properties (497,879) (1,034,729) (337,608) (102,307) 230.0% Other investment activities (2,120) (180) (324) (222) 45.9% Net Cash Used in Investing Activities (626,187) (992,422) (337,931) (102,528) 229.6% Cash flow from financing activities Loan Receipts from Bank 61,239 97,653 21,237 22, % Payment to Bank Loan (128,967) (92,214) (21,938) (41,877) -47.6% Receipt from Paid in Capital - 432, , , % Others (598) (214) 179.2% Net Cash provided by Financing Activities 265,573 1,105, , , % Net increase (decrease) in cash and cash equivalents (280,262) 96,837 (566) 158, % Effect of foreign exchange, net 228) (4) (5) (7) -20.0% Cash and cash equivalent of subsidiaries - before acquisition 2,200 Cash and cash equivalent, beginning balance 382, , , ,683 Cash and cash equivalent ending balance 104, , , ,916 *) : Unaudited 68

69 Thank you PT Mega Manunggal Property Tbk

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