PT Mega Manunggal Property...
Transcript of PT Mega Manunggal Property...
PT Mega Manunggal Property Tbk
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Section 1
Who We Are
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(MMLP effective ownerships)
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Bonny Budi SetiawanPresident Director
Has has been the Company’s Director since 2015 and appointed as the President Director in January 2017. Earned a Bachelor of Business Administration inAccounting and Finance from Simon Fraser University, Canada (1997). Previously served as Executive Director of PT UBS Securities Indonesia (2011-2015);Senior Vice President of PT Danareksa Sekuritas, Jakarta (2010 - 2011); Vice President of Research Division of PT Danareksa Sekuritas in Jakarta (2009 -2010); Vice President of Research Division of Merrill Lynch, Jakarta (2007 - 2009); Vice President of Research Division of PT CIMB-GK Securities, AssistantVice President of research division of PT Danareksa Sekuritas (2005 - 2007); Supervisor Consultant Financial Advisory Services (FAS) of PrijohandojoBoentoro & Co. (2003 - 2005); Research Analyst of PT Panin Sekuritas (2002 - 2003) and Export Supervisor of PT Pabrik Kertas Tjiwi Kimia (1998-2000).
Timothy Eugene AlamsyahIndependent Director
Has been appointed as the Independent Director since 2017. He is in charge of finance division. He earned Economics and Finance Bachelor’s degree fromUniversity of Melbourne, Australia in 2010. He was Chief Financial Officer for PT Nirvana Development (2016 – 2017), Corporate Secretary / Director for PTNirvana Development ( 2015 - 2016), Analyst for PT Trimegah Securities ( May 2015 – September 2015), Analyst for PT UBS Securities Indonesia (2011 –2014).
Loa Siong LieIndependent Director
Has been appointed as the Independent Director since 2017. He is in charge of technical and construction. He earned Civil Engineering Bachelor’s degreefrom University of Tarumanegara, Jakarta in 1996. He was Project Manager for PT Sinar Menara Deli (2016 – 2017), Project Manager for PT Supra MegahUtama ( 2012 - 2016), Site Manager for PT Pradani Sukses Abadi (2010 – 2012), Site Manager for PT Intersatria Budi Karya Pratama (2007 – 2010).Construction Manager for PT Praga Artamida ( 1996 – 2007).
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24 x 18 and
32 x 18
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139,811 158,137 163,911 163,911
230,370
300,680
100,000
150,000
200,000
250,000
300,000
350,000
2013 2014 2015 2016 2017 2Q 2018
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BEST
DKI
Jakarta
(Cimanggis)
Jawa Barat
(Jatiwarana)
Operational
In construction
Negotiation/tender
Contract signed
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FMCG36%
Logistics36%
E-commerce20%
Trading1%
Others7%
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Section 2
Growth Strategy
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Section 3
On The Right Track
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143k
440k330k31k
106k274k
164k
230k
338k
k
100k
200k
300k
400k
500k
600k
700k
800k
900k
1000k
2016 2017 2018E
Pipelines Under construction Completed
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16.8%
15.2%
17.1%17.6%
13.3% 13.2%
8.7%
7.8%
8.7%8.4%
7.5%
8.3%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%
19.0%
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2013 2014 2015 2016 2017 2Q 18*
IP at cost IP at fair value Yield to cost Yield to fair value
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46 46
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84 84
-
20
40
60
80
100
120
140
2017E Additional EBITDA Total EBITDA
445.5
945.8
-
200.0
400.0
600.0
800.0
1,000.0
2012 2017
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Section 4
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Strong Growth Opportunity
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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.
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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.
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“”
“ ’”
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Toll Roads AirportsRailways
This will positively affect the process of delivering goods and services for tenant companies,
which becomes competitive advantage for warehouse investment
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Tanjung Perak Port
Juanda air Port
In the near future, Gresik, Sidoarjo, and Surabaya will become our expansion target
21 Km
22 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.
35 Km
6 Km
Key Industry Served :FMCG, FnB, Electronic,
Chemicals
Greater Surabaya
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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.
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Indonesia Manufacturing Industry Snapshot
647 725812
9101,020
1,143
2015 2016 2017 2018 2019 2020
9.00%
Food and Beverage Manufacturing Sector
GDP Value, 2015-2020, IDR Trillions
2,405 2,622 2,858 3,115 3,3953,700
2015 2016 2017 2018 2019 2020
1. Positive demographics profile
2. Robust economic growth
3. Large number of middle income class
4. High degree of consumption
Growth Drivers Market Restraints
1. Slowing in global economy
2. Poor logistics infrastructure
3. High logistics cost
4. Regulation
Manufacturing Industry GDP Value,
2015-2020, IDR Trillions
The growing economy will further amplify the manufacturing industry,
especially food & beverages that will create bigger demand of warehousing
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1. Positive demographics profile
2. Robust economic growth
3. High ICT adoption
4. Large number of local players
Growth Drivers Market Restraints
1. Poor logistics infrastructure
2. Large unbanked population
3. Low adoption of cashless payment
4. Limited ICT competency
31.1%
Indonesia e-Commerce Market Size, 2015-2019, USD Millions
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IDR 257.64
Tn
• Wholesale, retail, and automotive sector was 17.0 percent of 2015 GDRP equivalent to IDR 304.65 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
Greater Jakarta GDRP by Key Industries, 2015
(% of GDRP)
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Government investment plan and initiatives on
infrastructure sector are expected to reach IDR 313
trillion in 2016, approximately 8.0% increase from
2015.
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
Growth of Service Segment 2011- 2016 (f)
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High growth, large domestic
market
Low growth, small
domestic market
Low growth, small domestic
market
Low growth, large domestic market
Indonesia continues to be an attractive target for FDI
Competitive wages and large domestic market makes Indonesia to be an attractive target for FDI in ASEAN
• 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.
Resilient economy growth and large domestic market are expected to boost investment in Indonesia
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
2011 2012 2013 2014 2015Minimum Wage Increase in PMW
Rp
Jakarta’s Historical Minimum Wage 2011 - 2015
Source: JLL
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
30%Middle and above
70%Below middle 53%
Middle and above
47%Below middle
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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.
Source: Central Bank of Indonesia; Frost & Sullivan Analysis
94.00
96.00
98.00
100.00
102.00
104.00
106.00
108.00
110.00
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4e
2014 2015 2016
Warehouse Demand Index, 2014-2016
(Quarterly)
0
50
100
150
200
250
2011 2012 2013 2014 2015U
SD/s
qm
Greater Jakarta Industrial Land Price
Bogor Bekasi Tangerang Karawang
Increase 9% in
Q4 2016 from
Q1 2014
Source: Analysis by Frost & Sullivan
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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.
The Indonesian population has a large online presence.
Internet and mobile internet traffic has increased significantly.
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Section 5
Key Financial
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139,811
158,137 163,911 163,911
230,370
300,680
96.8%97.8% 97.2% 100.0% 99.9%
94.1%
60.0%
65.0%
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
100,000
150,000
200,000
250,000
300,000
350,000
2013 2014 2015 2016 2017 1H18
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IDR
bn
(Rp bn) 2014 2015 2016 2017 2Q‘17 2Q’18 Y/Y
Revenues 141.9 163.5 175.3 208.8
Operating profit 114.3 121.7 117.7 142.4
Finance Costs (43.9) (51.8) (46.8) (52.3)
Forex gain / loss – net (15.2) (28.9) 3.3 (0.8)
Changes of IP fair value 261.1 64.8 323.0 217.2
Profit before tax 309.4 131.0 416.6 314.0
Income tax (14.2) (16.3) (17.6) (20.9)
Net income (loss) 286.4 114.4 342.2 252.3
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16.8%
15.2%
17.1% 17.6%
13.3% 13.2%
8.7%7.8%
8.7% 8.4%
7.5%8.3%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%
19.0%
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2013 2014 2015 2016 2017 2Q 18*
IP at cost IP at fair value Yield to cost Yield to fair value
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(Rp bn) 2013 2014 2015 2016 2017 2Q ‘18
Cash & cash equivalent 6 11 383 105 201 156
Current asset (a) 89 82 519 200 390 385
Investment properties 1,749 2,037 2,388 3,319 4,592 5,001
Non current asset (b) 1,751 2,056 2,685 3,766 4,972 5,380
Total asset (a+b) 1,840 2,139 3,204 3,966 5,363 5,764
Short term liabilities (c) 604 137 176 235 294 332
Long term liabilities (d) 368 554 478 446 399 394
Debt 563 597 587 520 526 464
Total liabilities (c+d) 972 691 653 682 693 726
Paid in capital 75 400 571 571 689 689
Retained earnings 530 816 932 1,273 1,525 1,574
Total equity 868 1,448 2,551 3,284 4,670 5,038
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1,749 2,037
2,388
3,319
4,592
5,001
563 597 587 520 524 464
868
1,448
2,551
3,284
4,670
5,038 0.65x
0.41x
0.23x 0.16x
0.11x0.09x
0.00x
0.10x
0.20x
0.30x
0.40x
0.50x
0.60x
0.70x
-
1,000
2,000
3,000
4,000
5,000
6,000
2013 2014 2015 2016 2017 2Q '18
Investment Porperty Debt Equity Debt-to-Equity
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635 626
992
278
415
119.5
141.9
163.5 175.3
212.0
98.7
143.6
106.3 115.1
122.9 120.8
145.9
72.1
108.2
EBITDA
867.2
1,447.50
2,551
3,284
4,670 5,038
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Operational metric
Net Leasable Area, m2
Built to suit 111,900 111,900 117,520 117,520 185,355 185,325
Multi tenants 27,911 46,237 52,011 46,391 45,015 115,325
Total, m2 139,811 158,137 163,911 163,911 230,370 300,680
Occupancy rate, %
Built to suit 100% 98% 97% 100% 100% 100%
Multi tenants 84% 98% 97% 100% 99% 85%
Average occupancy rate, % 97.0% 98.0% 97.0% 99.9% 99.9% 94.1%
Average remaining lease term, years 7.5 6.5 6.0 5.4 5.4 4.6
Revenue by segment
Revenue, Rp bn
Rental built to suit 94,931 99,160 99,922 106,313 137,015 91,504
Rental multi tenants 24,555 42,758 63,570 69,006 72,452 49,135
Total revenues, Rp bn 119,486 141,918 163,492 175,320 209,467 140,639
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Multi tenants34.9%
Built to suit65.1%
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Section 6
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Assets in Details
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Tanjung Priok
Seaport Industrial Estate
Ex pansion Area
Halim PK Airport
Pondok Ungu warehouse
Lazada Warehouse
Cileungsi Warehouse
Intirub Business Park
JababekaMM2100Cibatu Warehouse
Block AE Warehouse
LF WarehouseSelayar Warehouse
Unilever WarehouseBlock H Warehouse
Delta Silicon
Airport warehouse
Soekarno-Hatta
Int’ l Airport
Toll Road in operation Toll Road under construction
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Tanjung Perak Port
Juanda Air Port
Toll RoadsIn Operation
Under construction
Planning
In (Km) Manyar Warehouse
Distance to Surabaya 31
Distance to Airport 52
Distance to Tanjung Perak Port 29
MMP properties
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Building value delivering result
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Cawang
Intersection Cikunir
Intersection
MM2100
Industrial Estate
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Section 7
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Other Financial Info
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Year to Dec 31, Rp mn 2013 2014 2015 2016 2017 2Q '18*
Cash and Equivalents 6,368 11,311 382,973 104,683 201,516 155,550 -22.8%
Other current assets 72,054 57,381 127,100 92,962 189,163 229,175 21.2%
Property & equipment 1,236 2,107 13,483 13,342 12,327 10,652 -13.6%
Investment properties 1,748,426 2,036,806 2,388,400 3,318,776 4,592,009 5,001,427
Other non-current assets 1,469 17,183 283,590 433,700 368,645 367,575 -0.3%
Total assets 1,840,010 2,138,502 3,204,321 3,965,769 5,363,669 5,764,379
ST unearned revenue 23,932 23,528 25,281 42,641 25,398 36,314 43.0%
Bank loans - short term 181,547 35,636 124,911 89,859 164,117 142,182 -13.4%
Other current liabilities 398,923 77,433 25,276 102,648 104,997 153,170 45.9%
Bank loan 360,440 541,288 460,646 427,901 361,161 321,910
LT unearned revenue - - - 2,743 10,725 36,314
Other long term liabilities 6,924 12,762 17,180 15,717 27,081 36,194
Total Liabilities 971,766 690,647 653,294 681,509 693,479 726,085
Minority interest - 2,673 2,916 393,675 885,106 1,203,885
Equity 868,242 1,445,182 2,548,111 2,890,585 3.785.083 3,834,409
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Year to Dec 31, Rp mn 2013 2014 2015 2016 2017 2Q ‘18* 2Q ‘17*
Revenue 119,486 141,918 163,492 175,320 208,794 143,585 98,704
Cost of revenue 5,940 13,084 16,059 18,444 20,146 12,321 9,865
Gross profit 113,546 128,834 147,432 156,875 188,647 131,265 88,838
G&A 7,944 14,616 25,754 39,143 46,202 24,929 18,400
Operating profit 105,602 114,218 121,677 117,732 142,445 106,336 70,438
EBITDA 106,268 115,031 122,852 120,756 145,984 108,214 72,121
Net interest income (expense) (35,991) (42,818) (23,640) (29,262) (47,363) (18,145) (19,458)
Increase in fair value Invt Prop 222,424 261,127 64,787 323,288 217,211 - 20,482
Other items (117,848) (23,165) 31,822 5,073 (1,272) (8,535) 1,318
Profit before tax 174,187 309,363 131,003 416,831 314,051 79,656 72,781
Tax (12,201) (14,192) (16,349) (17,624) (20,986) (14,405) (9,930)
Proforma adjustment (71,454) (8,482) - - - -
Net income 90,532 286,404 114,415 342,166 252,262 65,251 62,852
67*) : Unaudited
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Rp mn 2016 2017 2Q ’18* 2Q ’17* % Y/Y
Cash flow from operating activities
Cash Receipt from Customer 245,678 144,143 -23.2%
Payment to Supplier and Others (69,658) (50,660) 61.8%
Tax paid (21,742) (13,749) -22.3%
Interest paid (18,363) (21,387) -20.3%
Net cash provided by operating activities 135,914 58,348 -48.3%
Cash flow from investing activities
Acquisition of Investment Properties (413,837) (276,966) 230.0%
Other investment activities (1,086) (932) 45.9%
Net Cash Used in Investing Activities (414,923) (277,898) 229.6%
Cash flow from financing activities
Loan Receipts from Bank 41,800 30,427 -6.2%
Payment to Bank Loan (110,119) (56,179) -47.6%
Receipt from Paid in Capital 302,843 210,919 43.6%
Others (1,480) (437) 179.2%
Net Cash provided by Financing Activities 233,043 184,730 57.5%
Net increase (decrease) in cash and cash equivalents (45,966) (34,820) -100.4%
Effect of foreign exchange, net (4) (0) (0) -20.0%
Cash and cash equivalent of subsidiaries - before acquisition
Cash and cash equivalent, beginning balance 201,516 104,683 92.5%
Cash and cash equivalent ending balance 155,550 69,863 -23.6%
68*) : Unaudited
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Thank you
PT Mega Manunggal Property Tbk