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%


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

38

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


Section 4

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Strong Growth Opportunity


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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•

•

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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


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


(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


92

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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2013 2014 2015 2016 2017 2Q 18

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%


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


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


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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*) : Unaudited


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


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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