Pt Mega Manunggal Property Tbk · IDX:MMLP
Pt Mega Manunggal Property Tbk — FY2020 Earnings Presentation
49 slides from Pt Mega Manunggal Property Tbk's earnings presentation, December 2020
Slide 1: PT Mega Manunggal Property Tbk - December 2020
PT Mega Manunggal Property Tbk DECEMBER 2020 1
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Slide 4: Disclaimer
Disclaimer The information contained in this presentation has been prepared by PT Mega Manunggal Property Tbk. (the “Company”) and is being furnished to you solely for your information and may not be reproduced or redistributed to any other person, in whole or in part in any manners or for any purpo
Slide 5: Agenda Presentation
Agenda Presentation Section Pages 1 Who we are 6 2 Growth strategy 17 3 Assets and Projects under Development 23 4 Growth opportunity 29 5 Key financial 39 6 Other financial info 45 5
Slide 6: Section 1: Who We Are
Section 1 Who We Are 6
Slide 7: Company At A Glance
Company At A Glance Overview Projects Facilities Currently MMP have 11 assets under management in PT. Mega Manunggal Property Tbk - many different strategic locations: Facilities of PT. Mega Manunggal “MMP”) is a warehouse provider that Property Tbk are developed with supports industrial property ne
Slide 8: Structure of PT Mega Manunggal Property Tbk
Structure of PT Mega Manunggal Property Tbk PT Mega Manunggal Property Tbk 99.50% 99.76% PT Intirub PT Mega Tridaya Properti 52.2% 28.8% 19.0% 99.40% 99.40% 55.00% 45.00% PT Mega Jaya PT Mega Cakrawala PT Mega Khatulistiwa Properti PT Indo Log One Lestari Properti Internusa Properti 99.99% 99.99% 99
Slide 9: Board of Directors
Board of Directors Hungkang Sutedja President Director Has been appointed as the Independent Director since 2020. He earned Bachelor of Finance degree from University of Missouri, Columbia, United States (1993). Currently he also serves a number of strategic positions in several other companies, Com
Slide 10: Company Milestone
Company Milestone Lazada OCTOBER 2017 LAZADA phase 2 project storted Ready for SEPTEMBER 208 round Breaking MMPs Bihan 7th Marhuce rojet ea CILEUNGS! WAREHOUSE} FEBRUARY 2018 BLOCK AE WAREHOUSE Reatly for lease AUGUST 2018 083 Project started uy 2018 OCTOBER 2018 NANYAR WAREHOUSE NIELS Project start
Slide 11: Investment Consideration
Investment Consideration 1 Provider of high quality and international standard logistic properties 2 Proven track record in developing and delivering logistic properties 3 Solid business model that provides stable and recurring cash flow 4 Strategically located logistic properties in Indonesia 5 Div
Slide 12: Provider of high quality and international standard logistic properties
1. Provider of high quality and international standard logistic properties We are the first mover in provider of modern logistic property, focusing on developing, owning and operating logistic properties, with a focus in warehousing that specifically meet international standards Typical specificatio
Slide 13: Proven track record in developing and delivering logistic properties
2. Proven track record in developing and delivering logistic properties MMP has proven track record in acquiring land and developing logistic properties, which generally takes around 9 to 18 months to complete construction. Growth in NLA in the past years 500,000 NLA 93.7% 100.0% 99.9% 99.9% 99.6% 9
Slide 14: Solid business model that provides stable and recurring cash flow
3. Solid business model that provides stable and recurring cash flow MMP focuses towards developing warehouse with size of 10.000 to 100.000 m2. Stable operating cash flow with greater upside potential from improving economy cycle, while at the same time sheltered against downside risks from eco
Slide 15: Strategically located logistic property in Indonesia
4. Strategically located logistic property in Indonesia Located in Java Island that is the centre for industries with the largest industrial estates in Indonesia Bangka Near centre of production and consumption Kaltim 3% Belitung 5% Sumut 0% Sulsel Kaltim Sumbar 2% 1% SulselSulteng… Jakarta, 2% Ba
Slide 16: Diversified and strong client base
5. Diversified and strong client base Tenant profile of MMP’s logistic properties as of December 2020 Clients Logistic E- commerce 8% 1% 24% 28% Automotive Manufacturing 39% Manufacture Logistics E-commerce Trading Others 16
Slide 17: Section 2: Growth Strategy
Section 2 Growth Strategy 17
Slide 18: A strategy that focuses on three factors of success
A strategy that focuses on three factors of success to reach scalable size Our strategy is simplified into three factors – funding, efficiency and volume. Timely ability to seek flexible funding structure and continues effort to reduce cost will maximize yield to cost. This will lead to greater prof
Slide 19: Focus in built to suit warehouse
Focus in built to suit warehouse Facts ✓ MMP has track record to complete complex construction ✓ Increase profitability ✓ Our capabilities to build high specification warehouses: ✓ Increase recurring revenue - Superflat floors - Double decker warehouse ✓ Results in higher margin since majority of th
Slide 20: Our corporate structure allows for flexible funding
Our corporate structure allows for flexible funding Our corporate structure allows for flexible funding structure. Partnership with largest logistic properties developers in the world would expedite the development of the properties and ensure that funding is met on timely basis. We have secured p
Slide 21: Continuous effort to cut costs amid aggressive capacity expansion
Continuous effort to cut costs amid aggressive capacity expansion We have successfully cut down our construction cost by 10% on recent development plan We set our yield to cost for at least of 9-10% Efficiency Our formula is to have land cost for 1/3 of total cost We strengthen our engineers
Slide 22: Continue to improve operating efficiency
Continue to improve operating efficiency Integrated IT platform Reducing cost ✓ Investing in operating system to release some of the ✓ Outsourcing to support our services including cleaning service, operational bottleneck and to improve our productivity parking etc. ✓ Implement a unified database fo
Slide 23: Section 3: Assets and Projects Under Development
Section 3 Assets and Projects Under Development 23
Slide 24: Location MMP's logistic properties and pipeline
Location MMP’s logistic properties and pipeline Tanjung Priok Seaport Industrial Estate Soek arno-Hatta Ex pansion Area Int’ l Airport Airport warehouse Pondok Ungu warehouse Intirub Business Park Halim PK Airport MM2100 Jababeka LF Warehouse Delta Silicon Cibatu Warehouse Selayar Warehouse Block AE
Slide 25: Location MMP's logistic properties and pipeline
Location MMP’s logistic properties and pipeline 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 25
Slide 26: Projects Under Development
Projects Under Development Currently we have 3 (three) projects under construction for approximately 160,000 m2 NLA warehouses, including Osowilangun, Manyar (Phase I – operational), and Pondok Ungu projects. Location: Manyar, East Java Location : Pondok Ungu, Bekasi Location : Osowilangun, East Jav
Slide 27: Current pipelines on track to achieve our NLA targets
Current pipelines on track to achieve our NLA targets Inquiries that could lead our 600,000m2 NLA target to be achieved. Achieving this requires approximately Rp1.2 trn of capital expenditure. We undertake a strict and proper KYC process in selecting tenants as it is very essential to have good trac
Slide 28: Values created from existing assets
Values created from existing assets Existing operating assets generate high yield to cost • Assume Annualized 4,500 Performance 20.0% 17.6% 4,000 17.1% 18.0% 16.8% 16.0% 3,500 15.2% 14.0% 13.3% 3,000 13.1% 12.4% 12.0% 2,500 10.0% 10.0% 8.7% 8.7% 2,000 8.4% 7.8% 8.4% 7.9% 8.0% 7.5% 7.5% 1,500 6.0% 1,
Slide 29: Section 4: Growth Opportunity
Section 4 Growth Opportunity 29
Slide 30: Evolution of the logistics sector
Evolution of the logistics sector ▪ 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
Slide 31: Evolution of the logistics sector
Evolution of the logistics sector • The logistics sector has seen gradual development in recent times. • However, at present most supply chain operations remain largely inefficient. • Only in recent years has the market begun to evolve from the traditional ‘gudang’ style of warehouse to modern logis
Slide 32: Demand Situation
Demand Situation a! 700,000 93% 97% gig 109% 93% 100% | mu | ° 86% 90% | 20% 600,000 . i aan Almost half of the _ 500,000 70% modern warehouse : | space is occupied by — 400,000 Gh I 3PLs 0% ! 60% § 300,000 | | Ea | 50% 20% | 40% ti) 40% Due to the build to suit = | P| nature of the market, | oO 0%
Slide 33: A nascent industry to enter
A nascent industry to enter Logistic cost as % of total GDP 26% 19% 14% 13% 9% 8% 9% 2016 2020 2035 Singapore Malaysia Japan South Korea 33
Slide 34: High logistic cost demand better infrastructures
High logistic cost demand better infrastructures “Besides the very high cost, logistic services in Indonesia are also bad like intervals in Indonesia for imported commodities requiring 5.5 days and transportation is also very costly” – The Indonesia Chamber of Commerce and Industry (Kadin) “Indonesi
Slide 35: Progress of Toll Road Projects
Progress of Toll Road Projects Non Trans Jawa 100 120 80 100 60 80 40 60 40 20 20 0 0 Cileunyi- Krian-Legundi- Pandaan- Balikpapan- Serang- Ciawi-Sukabumi Sumedang- Manado-Bitung AP Pettarani Bunder-Manyar Malang Samarinda Panimbang Dawuan 1 2 3 4 5 6 7 8 Km (RHS) 54 60.1 38.29 38.48 99.35 39 83.68
Slide 36: Progress of Toll Road Projects
Progress of Toll Road Projects No Jabodetabek Km (RHS) Land % Physical % 1 Cengkareng-Kunciran 11 63.96 52.52 2 Kunciran-Serpong 10.14 98.7 88.76 3 Serpong-Cinere 11.19 79.23 56.55 4 Cinere-Jagorawi 14.64 65.73 62.6 5 Cimanggis-Cibitung 26.5 70.45 10.47 6 Cibitung-Cilincing 32.76 76.63 48.07 7 Depok
Slide 37: Attractiveness of Greater Jakarta Connectivity and Established Infrastructures
Attractiveness of Greater Jakarta Connectivity and Established Infrastructures Toll Roads Railways Airports ▪ Greater Jakarta has been ▪ Greater Jakarta has integrated ▪ Jakarta is also supported by two connected by 18 toll roads with railways transportation, which major airports which located in le
Slide 38: Attractiveness of the locations - Connectivity
Attractiveness of the locations - Connectivity In the near future, Gresik, Sidoarjo, and Surabaya will become our expansion target Greater Surabaya Key Industry Served :FMCG, FnB, Electronic, Chemicals Tanjung Perak Port 6 Km 21 Km 22 Km Juanda air Port 35 Km In terms of land prices and availability
Slide 39: Section 5: Key Financial
Section 5 Key Financial 39
Slide 40: Solid revenues growth
Solid revenues growth MMP has successfully posted revenue Rp 336.8 bn in 2020 supported by stable NLA and occupancy rate. Currently, our NLA stood at 450,827 sqm. Development of NLA and Occupancy Rate 500,000 100.0% 99.6% 93.7% 450,000 99.9% 99.9% 95.0% 98.2% 98.6% 400,000 90.0% 450,827 350,000 85.0
Slide 41: Summary of profit and loss
Summary of profit and loss Aside from recurring income from leasing its own logistic properties, MMP also has recurring value creation from recognition over increase in fair value of investment properties. Each investment properties that have been completed will be measured at fair value. Summary of
Slide 42: Summary of Financial Position
Summary of Financial Position Investment properties that is measured in the fair value is the largest component of asset in the summary of financial position of MMP. From liability side, MMP is currently sourcing its financing from the equity, debt and bank loan. With strong value creation from inve
Slide 43: Summary of financial position
Summary of financial position Revenues, Rp bn EBITDA, Rp bn 300.0 334.0 336.8 249.5 299.2 250.0 220.2 216.1 200.0 208.8 145.9 163.5 175.3 150.0 122.9 120.8 100.0 50.0 - 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Equity, Rp bn Gross Capital Expenditure, Rp bn 7,000 986 6,000 5,627 5,
Slide 44: Key performance matrix
Key performance matrix 2014 2015 2016 2017 2018 2019 2020 Net Leasable Area, m2 Built to suit 111,900 117,520 117,520 185,355 185,355 223,084 288,622 Multi tenants 46,237 52,011 46,391 45,015 115,325 116,917 162,205 Total, m2 158,137 163,911 163,911 230,370 300,680 340,001 450,827 Operational metric
Slide 45: Section 6: Other Financial Info
Section 6 Other Financial Info 45
Slide 46: Audited Balance Sheet
Audited Balance Sheet Year to Dec 31, Rp mn 2015 2016 2017 2018 2019 2020 % YTD Cash and Equivalents 382,973 104,683 201,516 152,175 129,320 1,252,298 868% Other current assets 127,100 92,962 189,163 245,981 438,046 376,235 -14.1% Property & equipment 13,483 13,342 12,327 11,917 8,213 2,251 -72.6% I
Slide 47: Audited Profit and Loss Statement
Audited Profit and Loss Statement Year to Dec 31, Rp mn 2015 2016 2017 2018 2019 2020 % Y/Y Revenue 163,492 175,320 208,794 299,234 333,987 336,777 0.8% Cost of revenue 16,059 18,444 20,146 25,396 28,566 27,385 -4.1% Gross profit 147,432 156,875 188,648 273,838 305,421 309,392 1.3% G&A 25,754 39,143
Slide 48: Audited Cashflow
Audited Cashflow Rp mn 2016 2017 2018 2019 2020 % Y/Y Cash flow from operating activities Cash Receipt from Customer 221,769 226,867 348,340 416,183 277,298 -33% Payment to Supplier and Operating expenses - 90,742 - 174,166 - 126,417 - 174,279 - 111,377 -36% Tax paid - 20,404 - 20,594 - 30,229 - 40,
Slide 49: PT Mega Manunggal Property Tbk
PT Mega Manunggal Property Tbk 49
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