PT Mega Manunggal Property Tbk
PT Mega Manunggal Property Tbk
PT Mega Manunggal Property Tbk
PT Mega Manunggal Property Tbk
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PT Mega Manunggal Property Tbk
Agenda presentation
Section Pages
1 Brief profile of MMP 1
2 Review of MMP business 5
3 Investment thesis 12
4 Company recent updates 18
5 Financial review 21
6 Growth Strategy 27
7 Industry 31
8 Investment consideration 37
9 Appendix 1 Financial Information 38
PT Mega Manunggal Property Tbk
Section 1
Brief Profile of MMP
PT Mega Manunggal Property Tbk
Company at a glance
7
Overview
PT. Mega Manunggal Property Tbk
(“MMP”) is a warehouse provider that
supports industrial property needs in
Indonesia focusing on develops, owns
and operates logistic properties, with a
focus in warehousing that specifically
meet international standards.
Established on mid 2010, currently
MMP have Net Leasable Area of al a
total 163,911 sqm (including a 90,000
sqm NLA warehouse for PT Unilever
Indonesia, one of the the largest
Unilever warehouses globally)
ProjectsCurrently MMP has 4 assets in 2 different
strategic locations :
Bekasi MM 2100 :
Unilever Mega DC
Li & Fung Logistic
Selayar
Halim Cililitan East Jakarta :
Intirub Business Park
And we were building our 5th warehouses
for LAZADA (the larget
E-commerce in Indonesia in Jalan Raya
Bogor Depok
-
FacilitiesStandard High performance
modern logistic facility
specifications PT. Mega
Manunggal Property Tbk existing
portfolio is comprised of modern
logistics facilities equipped with
high-performance specifications
typically required by international
MNCs and 3PLsto produce high
quality goods and services that
competitive and supportive for
strengthening of national food
resilience based on sound
business ethics.
1
PT Mega Manunggal Property Tbk
Brief profile of PT Mega Manunggal Property Tbk
MMP’s shareholder structure (as of December 2015)
74,7%
PT Daya Sakti
Perdika
PT Mega Manunggal
Property Tbk
Unilever
Mega DC
Li & Fung
Intirub Business
Park I & II
Selayar
The Nicholas
PT Mega Mandiri
Property
PT Mega
Khatulistiwa
Properti
PT Mega Tridaya
Properti
15%10,3%
69,3%
1%
99,5%
PT Intirub
99,0%99,5%
0,7%
1%
Hungkang
Sutedja
Public30%
PT Mega Dharma
Properti
0,5%
0,5%
99,0%
2
PT Mega Manunggal Property Tbk
Fernandus Chamsi
President Director
Bonny Budi Setiawan
Independent Director
Johny Johan
Director
Company’s management
Board of
commissioners
Board of directors
Hungkang Sutedja
President Commissioner
Tri Ramadi
Vice President
Commissioner
Nicholas The
Commissioner
Abdul Rahim Tahir
Independent
Commissioner
Debbie Ana Sumargo
Independent
Commissioner
3
PT Mega Manunggal Property Tbk
Track record of MMP
2018
October 2010
Construction of
Unilever Mega
DC began
8-2010 3-2011 4-2012
5-201312-201110-2010 5-2013
10-2012 6-2014
2-2015 20181-2014 12-20142010 2011 2012 2013 2014 2015
Decemer 2011
DHL began its
operational in
Intirub Business
Park I
NLA: 28.036 m2
2016
December 2014
Construction of
Selayar
completed
NLA: 5.620 m2
August 2010
MMP was
established
May 2013
Construction of Li
& Fung
completed
NLA: 21.612 m2
August 2015
Signing Lazada
December 2016
Acquired 9 ha
land for Lazada
Project
April 2012
Construction of
Unilever Mega
DC completed
NLA: 90.288 m2
June 2014
Construction of
Intirub Business
Park II completed
NLA: 18.355 m2
June 2015
Initial Public
Offering
(IPO)
November 2015
Signing MOU
with Daiwa
4
PT Mega Manunggal Property Tbk
Section 2
Review of MMP Business
PT Mega Manunggal Property Tbk
Location MMP’s logistic properties
5
Marunda
Center
Tanjung
Priok
Port
Jababeka
Growing industrial
estates
(automotive,
consumer, light and
medium industries)
Kota Deltamas
Modern
Bekasi
Industrial estates
expansion areas
Jakarta
Industrial
Estate
Soekarno
Hatta
Airport
Unilever
Li & Fung
Selayar
Intirub
Business
Park
Halim
Lippo
Cikarang
Access to Bandung
and Cikampek
(main transportation
route of goods)
Access to Merak
port and
Lampung
(main
transportation
route to
Sumatera)
MM2100
Heavy
industry and
petrochemica
l estates
Lazada
Depok
(in km)Intirub Business
ParkUnilever Mega DC Li & Fung Selayar Lazada
Distance to Jakarta 0 35 35 35 22
Distance to Tanjung Priok port 22 48 48 48 43
Distance to International Airport 39 68 68 68 60
PT Mega Manunggal Property Tbk
Logistic property profile – Unilever Mega DC
Location : MM2100 industrial estates, West
Cikarang, Bekasi
Land area : 194.297 m2
Gross floor area : 156.462 m2
NLA : 90.288 m2
Lease period : 10 years, with an option to extend
another 10 years
Operator : PT Linfox Logistics Indonesia
Floor capacity : 6 ton per m2
Ceiling height : 12 m (center 17 m)
Specification:
- Super flat floors (FF; Floor Flatness);
- Double deep pallet racking system;
- Heat shield;
- Parking area up to 104 truck;
- 85 loading doors;
- 8 loading dock levelers;
- Sprinkler on each rack, with immediate response;
- Fire extinguisher with standard of ULFM;
- Rental that include racking, sprinkler and office.
6
PT Mega Manunggal Property Tbk
Logistic property profile – Li & Fung
Location : M2100 industrial estates, West Cikarang,
Bekasi
Land area : 34.637 m2
Gross floor area : 21.702 m2
NLA : 21.612 m2
Lease period : 5 years, with option to extend for another 5
years
Floor capacity : 6 ton per m2
Ceiling height : 11 m (center 12,5 m)
Tenant : PT LF Services Indonesia (part of Li &
Fung Ltd. Group) / Fonterra & ARK / Ultra
Jaya
Specification:
- Super flat floor;
- 38 loading doors with tight sealing to keep hygiene;
- Heat shield;
- 19 loading dock levelers
7
PT Mega Manunggal Property Tbk
Logistic property profile – Intirub Busines Park I & II
Intirub Business Park I
Location : Halim, East Jakarta
Land area : 28.195 m2
Gross floor area : 30.086 m2 (warehouse) + 5.455 m2 (office)
NLA : 23.397 m2 (warehouse) + 4.639 m2 (office)
Floor capacity : up to 4,5 ton per m2
Ceiling height : 10 m
Warehouse specification : warehouse with semi basement, 3 floor
office and parking area
Special specifications : 5 loading dock levelers
Tenants : DHL, ARK/Ingram, Yokogawa, aCommerce
(warehouse), Bank BNI46, DHL,
Mahadasha, Scan Global (office)
Intirub Business Park II
Location : Halim, East Jakarta
Land area : 32.380 m2
Gross floor area : 23.219 m2 (warehouse) + 5.696 m2 (office)
NLA : 13.709 m2 (warehouse) + 4.646 m2 (office)
Floor capacity : up to 4,5 ton per m2
Ceiling height : 9 m
Warehouse specification : warehouse with semi basement, 3 floor
office and parking area
Special specifications : 10 loading dock levelers
Tenants : Grundfos, DHL, ARK, MHE-Demag
(warehouse), Grundfos, Deraya, MHE-
Demag (office)
8
PT Mega Manunggal Property Tbk
Property logistic profile – Selayar
9
Location : MM2100 industrial estates, West
Cikarang, Bekasi
Land area : 9.164 m2
Gross floor area : 5.742 m2
NLA : 5.620 m2
Floor capacity : 4 ton per m2
Ceiling height : 9 m (center 13 m)
Special specifications : 6 loading doors with 2 loading dock
levelers
Tenants : Yusen Logistics Solution Indonesia
PT Mega Manunggal Property Tbk
Building value delivering result
17
From Abandoned Factory In progress to become the largest DC for LAZADA Indonesia
10
PT Mega Manunggal Property Tbk
Property logistic profile – Lazada
Location : Tapos, Depok
Land area : 90.180 m2
Gross floor area : +/- 62.000 m2 (phase 1 and phase 2)
Lease period : 10 years, with option to extend for
another 5 years
Floor capacity : 4 ton per m2
Ceiling height : 12 m (center 16m)
Tenant : LAZADA
Specification:
- Flat floor;
- Parking Area & Basement Area
- Double Decker (stage 2)
11
PT Mega Manunggal Property Tbk
Section 3
Investment Thesis
PT Mega Manunggal Property Tbk
Provider of high quality and international standard logistic properties
Note: Not all MMP’s logistic properties are equipped with the above specifications
Standard
warehouse
Unilever
Mega DCLi & Fung
Intirub
Business ParkSelayar Lazada
Floor
capacity≤ 1,5 ton/m2 s/d 6 ton/m2 s/d 6 ton/m2 s/d 4/4,5 ton/m2 s/d 4 ton/m2 s/d 4 ton/m2
Ceiling
height≤ 5,0 m
12 m
(center 17 m)
11 m
(center 12,5 m)
10 m (Tahap I)
9 m (Tahap II)
9 m
(center 13m)
12 m
(center 16 m)
Distance
between
pillar
≤ 8,0m
Main area:
18 x 36 m
Area aerosol:
9 x 28,5 m
27 x 18 m;
30 x 18 m
Stage 1:
Basement: 8 x 8 m
Ground Floor
8 x 30 m
Stage 2:
Basement:
6 x 15 m
Ground Floor
12 x 30m
30 x 12m24 x 18 and
32 x 18
Level singleSingle (multi
racking)
Single (multi
racking)Multi Single
Single (multi
racking
Flooring standar Super flat Super flat Flat Flat Flat
Warehouse specificationTypical specification from high-performance logistic
properties
1
2
33
Office space
Better working
environment for
employees
2
3
1
Car Berths
Number of facilities that
allow trucks to
loading/unloading efficiently
Dock shelters
To prevent and protect from wind,
rain, moisture, dust, etc., while
handling cargos.
Ceiling height of 5,0 m or
more to provide space for
cargo lifting using
forklifts
Distance between
pillar 8,0 m or more
to increase
efficiency
Floor capacity 1,5 ton/m2
or more to accommodate
use of forklifts
MMP’s existing logistic properties surpass main criteria and specification for modern logistic
properties.
912
PT Mega Manunggal Property Tbk
2012 2013 2014 2015
Unilever IBP I L&F IBP II Selayar
163.757 163.911
118.199
139.811
Proven track record in developing and delivering logistic properties
Growth in NLA in the past 3 years
MMP has proven track record in acquiring land and developing logistic properties, which generally takes around 9 to 18 months to complete
construction.
Consistency in maintaining occupancy rate above 90%
Project Land Area Gross Floor Area Net Leasable Area Date of Contract Months to develop Delivery date
Unilever Mega DC 194.297 m2 156.462 m2 90.288 m2 15 December 2010 16 months 25 April 2012
Li & Fung 34.637 m2 21.702 m2 21.612 m2 9 July 2012 11 months 15 May2013
Standard Warehouse Building
Project Land Area Gross Floor Area Net Leasable Area Months to develop
Intirub Business Park I 28.195 m2 30.086 m2 (warehouse) + 5.455 m2 (office) 23.397 m2 (warehouse) + 4.639 m2 (office) 9 months
Intirub Business Park II 32.380 m2 23.219 m2 (warehouse) + 5.696 m2 (office) 13.709 m2 (warehouse) + 4.646 m2 (office) 18 months
Selayar 9.164 m2 5.742 m2 5.620 m2 12 months
CAGR 17,7%
Built-to-suit
(m2)
90%
97%
94%Occupancy rate 97%
2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5
Unilever IBP I L&F IBP II Selayar
154.623 159.318
105.657
135.311
13
PT Mega Manunggal Property Tbk
Solid business model
Unilever Mega DC
(operated by Linfox)Li & Fung
Rental revenue
2015:
Rp 85,97 bn
Rental revenue
2015:
Rp 13,95 bn
Intirub Business Park
Rental revenue
2015:
Rp 60,93 bn
Selayar
14
MMP focus towards developing warehouse with size of
5.000 to 100.000 m2.
Built-to-suit tenants that currently contribute around 70%of
total revenues minimizes risks of tenants exiting.
Stable operating cash flow with greater upside potential
from improving economy cycle, while at the same time
sheltered against downside risks from economy slowing.
High operating leverage with high EBITDA margin.
Improve tenants’ efficiency and productivities through
centralization of warehouses.
Competitive advantages Operating assets that provide recurring and stable cash flow
Rental revenue
2015:
Rp 2,64 bn
PT Mega Manunggal Property Tbk
MMP’s logistic properties are located strategically in Indonesia
Near centre of production and consumption
Easy access towards transportation network
Easy supply of labour workforce and convenient transportation for employees
Provide benefits to tenants in reducing logistic costs
Sumber: Himpunan Kawasan Industri
% Industrial estate areas % Industrial estates that are
developed
Jakarta, Banten &
Jabar71%
Jateng5%
Jatim8%
Riau & Kep. Riau8%
Sumut5%
Sumbar0%
Sulsel2%
Kaltim1%
Jakarta, Banten &
Jabar57%
Jateng6%
Jatim9%
Riau & Kep. Riau9%
Sumut4%
Sumbar1%
Sulsel2%
Sulteng4%
Kaltim3%
Bangka Belitung5%
15
Located in Java Island that is the centre for industries with the largest industrial estates in Indonesia
PT Mega Manunggal Property Tbk
MMP’s logistic properties are located closer to consumers
BESTCinere
Kunciran
Tangerang
CengkarengPenjaringan
Tanjung Priok
DKI
JakartaKebon
Jeruk
Ulujami
Veteran
(Pd Pinang)
Jagorawi
(Cimanggis)
Jawa Barat
Cibitung
Cikunir
Jatiasih
Hankam Raya
(Jatiwarana)
Taman
Mini
Laut Jawa
Banten
Bekasi
Cakung
Cilincing
(Rorotan)
15
14
1312
9
8
765
3
2
1
16
17
11
4
10
Operational
In construction
Negotiation/tender
Contract signed
1 to 9 JORR I
10 to 17 JORR II
16
Located in Java Island that is the centre for industries with the largest industrial estates in Indonesia
Source: PT Bekasi Fajar Tbk.
PT Mega Manunggal Property Tbk
Creating trust among our clients
ConsumptionLogistic
Bank
Logistic
E-commerce
Manufacturing
Training
Build to Suit
Multi Tenant
Tenant profile of MMP’s logistic properties as of 31 December 2015
17
Bank0%
Consumer58%
Distributor0%
E-commerce6%
IT0%
Logistics27%
Manufacture6%
Service1%
Trading1% Training
Center1% E-commerce
PT Mega Manunggal Property Tbk
Section 4
Company recent updates
PT Mega Manunggal Property Tbk
A strategy that focuses on three factors of success to reach scalable size
Three factors of success
18
Efficiency Funding
Volume
500,000 m2
NLA
Min of 10%
average initial
yield
To achieve our NLA target of 500,000 m2 in 3 years
Continues to reduce construction cost to maximize yield
to cost
Sustainable of funding structure and recycle of cash
To accelerate growth and generate stable cash flow
Sustain profitability and greater EBITDA margin
Timely execution of development
To increase transparency and good corporate
governance
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 profitability. Our initial scalable size to be achieved over the next 3 years is
500,000m2 NLA.
PT Mega Manunggal Property Tbk
We have secured partnership DHI, one of the world
largest logistic property developers and in the advanced
discussion with another partnership
This will create transparency and good corporate
governance
The partnership will bring a total of Rp2.7trn of funding
that will accelerate the development of the projects
The partnership will reduce cost of fund and increase
the average overall yield to cost
MMP will continue to have stable cash flow from its
existing 4 warehouses that potentially gives upside to
future dividend payment
All development will be conducted under PT Mega
Khatulistiwa Properti
Each project will be set under one company to monitor
the performance of each project and for the purpose of
future monetization should opportunity arises
Our corporate structure allows for flexible funding
19
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 to ensure that funding is met on timely basis.
PT Mega Manunggal
Property Tbk
Unilever
Mega DC
Li & Fung
Intirub Business
Park I & II
Selayar
PT Mega Khatulistiwa
Properti
PT Manunggal
Persada Property
PT Mega Tridaya
Properti
(67%)
99,5%
PT Intirub
99,0%99,5%
DHI
PT Mega Dharma
Properti
90%
99,0%
(51%)
(49%)
(33%)
GIC
PT Mega Manunggal Property Tbk
Continuous effort to cut costs amid aggressive capacity expansion
20
We have successfully cut down our construction cost by 10% on recent development plan
We set our yield to cost for at least of 10%
We strengthen our engineers team to look for best possible design that will cut any unnecessary cost
We continue to monitor construction progresses to align with existing budget
Efficiency
Volume
Plan to construct 4 to 5 warehouses this years
Block AE to do ground breaking this year – a 35,000 m2 sheltered warehouse
Phase II warehouse for Lazada to begin in 2H16 – 30,000 m2
Block H to have scheduled set for in the mid of 2016
There are two more warehouses to be built in 2H16, pending land clearance
PT Mega Manunggal Property Tbk
Section 5
Financial Review
PT Mega Manunggal Property Tbk
Solid revenues growth
Development of NLA and Occupancy Rate Each asset contribution towards revenues
In the past 2 years, MMP has successfully posted a 51,2% CAGR to Rp141,9bn in 2014 supported by growth in NLA and occupancy rate. As of
December 2015, our NLA stood at 163.911 m2
2012 2013 2014 2015
Net Leasable Area (m2) 118,199 139,811 163,757 163,911
Leased area (m2) 105,657 135,311 154,623 159,318
Occupancy Rate (%) 89% 97% 94% 97%
(Rp bn) 2012 2013 2014 2015
Unilever Mega DC 50.6 88.3 82.9 85.97
Li & Fung - 6.8 16.2 13,95
Intirub Business Park 11.5 24.4 42.8 60.93
Selayar - - - 2.64
Total revenue 62.1 119.5 141.9 163.49
21
118,199
139,811
163,757 163,911
89%
97%94%
97%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
-
50,000
100,000
150,000
200,000
250,000
2012 2013 2014 2015
Net Leasable Area (m2) Occupancy Rate
50.59
88.29 82.95 85.97 -
6.75 16.21 13.95
11.47
24.44
42.76
60.93
2012 2013 2014 2015
Unilever Li & Fung Intirub Business Park Selayar
141.9
163.49
62.1
119.5
CAGR 62.3%
PT Mega Manunggal Property Tbk
Summary of profit and loss comprehensive
Summary of profit and loss comprehensive
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.
(Rp bn) 2012 2013 2014 2015
Revenues 62.1 119.5 141.9 163.5
Operating profit 48.8 105.6 114.3 121.7
Interest expenses (16.3) (36.1) (43.9) (51.8)
Forex loss - net (22.0) (117.7) (15.2) (28.9)
Changes in fair value of PII 357.5 222.4 261.1 64.8
Profit before tax 372.3 174.2 309.4 131.0
Income tax (6.3) (12.2) (14.2) (16.3)
Comprehensive profit and loss 313.9 90.5 286.4 114.4
Appraised value of Investment properties per 31 Desember
2015 1(Rp miliar)
Unilever 857.46
Li & Fung 170.08
Selayar 45.54
Landbank 424.9
Intirub Business Park 570.03
Total investment properties 2,068
Note:
1) Appraised value from KJPP Stefanus Tonny Hardi & Rekan
Asset yield
22
357.5
222.4261.1
64.8
62.1
119.5
141.9
163.5
2012 2013 2014 2015
IDR
Bn
Increase in fair value of investments properties Rental Revenue
Component of recurring value creation
495.6
686.5 764.3
833.3 12.5%
17.4%18.6%
19.6%
9.9%
15.4% 14.9% 14.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
(100.0)
100.0
300.0
500.0
700.0
900.0
1,100.0
1,300.0
1,500.0
2012 2013 2014 2015
(%)
Average outstanding investment property at investment cost
Rental revenue / investment cost
Operating profit / investment cost
PT Mega Manunggal Property Tbk
Summary of financial position
Summary of financial position Asset and capital structure
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 investment properties,
MMP could achieve conservative leverage with debt to equity ratio of 0.4x at the end of 2014.
(Rp bn) 2012 2013 2014 2015
Cash and cash
equivalent6.3 6.4 11.3 383.0
Current asset 88.7 88.9 82.4 518.8
Investment properties 1,409.2 1,748.6 2,037.2 2,388
Non current asset 1,411.5 1,751.1 2,056.1 2,685
Total asset 1,500.1 1,840.0 2,138.5 3,204
Short term liabilities 465.3 604.4 136.6 175.5
Long term liabilities 329.0 367.8 554.4 477.8
Debt 397.4 562.5 597.4 587.44
Total liabilities 794.3 972.2 691.0 653.3
Paid in capital 75.0 75.0 400.0 571.4
Retained earnings 439.1 529.6 816.0 891.57
Total equity 705.8 868.2 1,447.5 2,551
23
1,409
1,749
2,037
2,388
391 556 586
204
706 868
1,448
2,551
0.6x
0.6x
0.4x
0.1x
-0.1x
0.0x
0.1x
0.2x
0.3x
0.4x
0.5x
0.6x
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2012 2013 2014 2015
(x)
IDR
Bn
Investment Properties Debt-to-Equity Equity Debt-to-Equity
PT Mega Manunggal Property Tbk
Summary of financial position
Revenues, Rp bn EBITDA, Rp bn
Equity, Rp bn Capital Expenditure, Rp bn
24
2012 2013 2014 2015
706868
1.445
2.548
2012 2013 2014 2015
49
106115
123
2012 2013 2014 2015
62
119
142
16351.3%52.8%
2012 2013 2014 2015
1,035
283
233
287
PT Mega Manunggal Property Tbk
Key performance matrix
25
2012 2013 2014 2015 %CAGR %YoY
Operational metric
Net Leasable Area, m2
Built to suit 90,288 111,900 111,900 111,900 11% 0%
Multi tenants 27,911 27,911 51,857 52,011 37% 0%
Total, m2 118,199 139,811 163,757 163,911 18% 4%
Occupancy rate, %
Built to suit 100% 100% 98% 97% - -
Multi tenants 55% 84% 87% 98% - -
Average occupancy rate, % 89% 97% 94% 97% - -
Average remaining lease term, years 10.0 7.5 6.5 6.0 - -
Revenue by segment
Revenue, Rp bn
Rental built to suit 50,594 94,931 99,160 99,922 41% 1%
Rental multi tenants 11,472 24,555 42,758 63,570 135% 51%
Total revenues, Rp bn 62,066 119,486 141,918 163,492 62% 15%
Profitability
Operating Profit (EBIT), Rp bn
Built to suit 39,365 81,881 83,514 77,544 - -
Multi tenants 9,476 23,721 30,736 44,134 - -
Total EBIT, Rp bn 48,840 105,601 114,251 121,678 70% 8%
EBIT margin, % 79% 88% 81% 75% -
EBITDA, Rp bn 49,296 106,267 115,063 122,852 70% 8%
% margin 79% 89% 81% 75% - -
Interest expense, Rp bn -16,049 -35,991 -42,818 -51,843 38,886 12%
Forex loss nett, Rp bn -21,987 -117,712 -15,201 -32,018 46,465 691%
Profit before tax, Rp bn 372,338 174,187 309,395 131,003 22,446 -41%
PT Mega Manunggal Property Tbk
50,594
94,931 99,160 99,922 11,472
24,555 42,758
63,570
10,000
30,000
50,000
70,000
90,000
110,000
130,000
150,000
170,000
190,000
2012 2013 2014 2015
Built to Suit Multi Tenants
Built to suit (% of total revenue) 81% 79% 69% 61%
Revenues breakdown
Built to suit warehouses account for two third of total revenues
Revenues breakdown
26
Net leasable composition area
As of 31 Dec 2015
Revenue
IDR Bn
119.486
141.918163.492
62.066
PT Mega Manunggal Property Tbk
Section 6
Growth Strategy
PT Mega Manunggal Property Tbk
1
2
3
Constructing new logistics properties in strategic location
Focus in built to suit property logistic
Continue to improve operating efficiency
Our growth strategies
27
PT Mega Manunggal Property Tbk
Constructing logistic properties with international standard1
Warehouse Site identifiedLand acquired
(downpayment)
Construction permits
securedEstimate opening
Site 1 √ √ √ 4Q 2016-Q1 2017
Site 2 √ √ - 1Q 2017
Site 3 √ √ - 3Q 2017
Site 4 √ √ - 4Q 2017
Site 5 √ √ - 4Q 2017
Site 6 √ √ - 1Q 2018
Strategic location
Target yield 9 – 11%
Has secured tenants
Payback periods 8 years
Penetration outside greater Jakarta to other big cities in
Indonesia such as Surabaya, Kalimantan etc.
Targeting Top 5 Companies in different sectors :
(Consumer, Logistic, Manufactures, E-commerce, Trading)
Development criteria Strategic business
28
PT Mega Manunggal Property Tbk
Focus in built to suit warehouse2
Facts
MMP has track record to complete complex construction
Our capabilities to build high specification warehouses:
- Superflat floors
- Double decker warehouse
Increase Profitability
Increase Recuring Revenue
Results in higher margin since majority of
the expenses bear by tenant
Increase our brand name
Investing in human capital (marketing team, which shall ensure that our growth strategy will continue to be in placed)
Improve our building management service
Offer our potential clients with value engineering ( offer alternative design & construction to improve client’s optimization and
efficiency )
Develop innovative & high quality ( ex: Green Building Concept)
Improve relationship with existing tenants
High demand from manufacturers company,
eCommerce to built warehouse for their company
Revenues breakdown
29
PT Mega Manunggal Property Tbk
Continue to improve operating efficiency3
Investing in operating system to release some of the
operational bottleneck and to improve our productivity
Implement a unified database for storage of tenant
records and other information to reduce costs and
improve efficiency
Increase scale of NLA Warehouse will allow us to achieve
economies of scale
Gain greater bargaining power in procurement process
Invest in marketing team
Integrated IT platform Reducing cost
Outsourcing to support our services including cleaning service,
parking etc.
Standardize warehouse specifications to shorten the building
process
Benchmarking our construction cost with other industry
players
Effective tender process to determine the most effective
contractors
Quarterly review of budgeting to ensure that costs are
aligned with the proposed budget
Invest in high quality people to manage estates and to
increase productivity
Management focus Economies of scale
30
PT Mega Manunggal Property Tbk
Section 7
Industry
PT Mega Manunggal Property Tbk
Growing market to support logistic industry
ASEAN continues to be the focus for multinational companies to grow and Indonesia is one of the countries prioritized in the region. Demand for
supporting infrastructure including logistic properties is expected to grow along with the increase in investment.
% of respondent that indicate country to be prioritized in their future business
expansion
Source: ASEAN Business Outlook Survey 2015
135
155
0
40
80
120
160
200
2013 2014
USD bn
Growth in Indonesia’s logistic industry
Source: Frost & Sullivan
Frost & Sullivan estimated 14,7% growth in the logistic industry in Indonesia for
2014 helped by growth in service sector and increase in household consumption
Domestic business tends to shift key aspect of supply chain management and
distribution to provider of logistic services, particularly FMCG, electronic and
petrochemical.
31
41%
37%35%
32%30%
28%
21%
18% 18%
13%
7%
Indo
nesia
Vie
tna
m
Mya
nm
ar
Ma
laysia
Th
aila
nd
Fili
pin
a
Ka
mb
oja
Sin
ga
pura
Tid
ak a
da
Lao
s
Bru
ne
i
Indonesia becomes main target for business development in ASEAN
Track record in the strong growth in the logistic industry in Indonesia
E E
PT Mega Manunggal Property Tbk
High growth, large domestic market
Low growth, small domestic
market
Low growth, small domestic market
Low growth, large domestic market
Indonesia
Singapura
Filipina
Thailand
Malaysia
Jepang
Australia
Vietnam
Myanmar
0
50
100
150
200
250
300
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%
Popula
tio
n (m
n)
Rata-rata estimasi pertumbuhan PDB riil 2012-2016F
Indonesia continues to be an attractive target for FDI
32
184 187 183 235 252 283 283 280 321372 400
477234 268 253
292 325 357 391 386 405 432 464 505623
740 697
882
1,040 990 974 988 1,010 1,0301,080 1,130
273 351399
450539
617692
771
862961
1,0601,170
0
200
400
600
800
1,000
1,200
1,400
2007 2008 2009 2010 2011 2012 2013 2014F
2015F
2016F
2017F
2018F
Indonesia Thailand Brazil China
Competitive wages and large domestic market makes Indonesia to be an attractive target for FDI in ASEAN
Source: EIU, International Labour Organisation, IMA Asia
Ave
rag
e m
on
thly
wag
es
(USD
)
Source: EIU, Euromonitor
0%
20%
40%
60%
80%
100%
1990 2000 2010 2015
% h
ousehold
s b
ased o
n in
com
e
level
<5K USD 5K - 10K USD 10K-15K USD >15K USD
Rising middle class income
Retail sales increase in 1Q 2014 supported by election, higher minimum
wages in 2013, and good harvest.
Retail sales in Q1 2014 increased 20% from previous year for food and
beverages, household equipment and clothing.
Although there are concerns that increase in minimum wages will reduce
Indonesia’s attractiveness for FDI, average minimum wages in Indonesia
is expected to be more competitive that in Thailand and China.
Resilient economy growth and large domestic market are expected to boost investment in Indonesia
Increase in minimum wages helps boost consumption in Indonesia, while average minimum wages in Indonesia continue to be competitive compared to Thailand and China
PT Mega Manunggal Property Tbk
0
50
100
150
200
250
2011 2012 2013 2014
Bekasi Bogor Tangerang
Karawang Serang Rata-rata
Investment support increases in industry property
Demand for industrial estate increase along with the growth in FDI and domestic investment. Such has elevated the increase in land prices which
inevitably forces companies to allocate their capital efficiently towards productive assets and let third parties to handle supporting activities including
logistics.
Source: Colliers International
(USD/m2) 2011 2012 2013 2014% CAGR
(2011-2014)
Bekasi 123 184 215 223 22%
Bogor 107 127 220 174 18%
Tangerang 111 123 126 159 13%
Karawang 83 136 177 185 31%
Serang 78 101 130 133 19%
Average 100 134 174 175 20%
33
Source: Bank Indonesia, Colliers
3.0
3.4
3.0
4.5
5.3
5.0
3.5
5.4
4.5
3.2
5.8
5.6
3.8
4.6
5.9
4.6
5.1
4.9
7.6
4.7
1Q
2010
2Q
2010
3Q
2010
4Q
2010
1Q
2011
2Q
2011
3Q
2011
4Q
2011
1Q
2012
2Q
2012
3Q
2012
4Q
2012
1Q
2013
2Q
2013
3Q
2013
4Q
2013
1Q
2014
2Q
2014
3Q
2014
4Q
2014
(US
D m
n)
Foreign Direct Investment Land price (USD/m2)
PT Mega Manunggal Property Tbk
Asia logistics, industrial yields and rentals
Asia logistics / industrial yields by key centres Asia logistics / industrial rentals by key markets
0%
2%
4%
6%
8%
10%
12%
India China Japan Singapore Hongkong
Yie
ld (
%p
er
an
nu
m)
Yield (%p.a) Risk - free Rates
Source: Colliers International
5% 5%
0%
5%
4%
10%
3%
0%
2%
4%
6%
8%
10%
12%
0
5
10
15
20
25
HongkongSingapore Tokyo Delhi Shanghai Beijing Guangzhou
Rental, US$ per sq ft p.a. (LHS) Forecast growth, % YoY
Source: Colliers International
Due to the sustained flow of investments into Asia, and the region’s subdued inflationary environment, risk-free rates have consistently fallen. The
logistics and industrial property yield spread compared to these risk-free rates narrowed up to 1Q 2013. However, the spread widened in Japan.
In China, long-term real estate funds have been eyeing opportunities for modern warehousing facilities for long-term growth in both the first and
second-tier cities. Investment yields for quality logistics premises in China currently range from 6 to 8% per annum.
The normal rental rate in China is around US$6-7 per sq. ft. per annum; and in most Chinese cities, they are expected to increase in the order of
3-5% per annum, thanks to the sustained growth of industrial production, cargo throughput volume and local retail sales. Beijing is going to deliver
an exceptional performance, primarily due to the accelerating expansion of its third-party logistics (3PL) companies and e-commerce sector.
34
PT Mega Manunggal Property Tbk
Asia Logistics / Industrial Rental
Capitalization rates for logistic properties in Asia
The average industrial capitalization rate in Asia fell to
an all-time low of 5.8% in 2Q 2012; but edged up again
to 7.1% in 1Q 2013, according to statistics provided by
RCA.
The increase in cap rates reflected growing uncertainty
in the traditional warehousing sector about the
sovereign debt problems in the Eurozone, which had
still not been fully resolved.
However, strong demand continues for quality logistics
warehouses and distribution facilities, particularly those
supported by seasoned managers, and the average
capitalization rates have been compressed.
35
PT Mega Manunggal Property Tbk
Riding along with the growing E-commerce
Increasing middle class income has helped E-commerce sectors growing at 42% CAGR 2012-15
195 180 145
170
45 85 135 110
2010 2020 2030 2030
Below Global Consuming Class Global Consuming Class
(5-6% GDP Scenario) (7% GDP Scenario)
Source : BPS, Bappenas, UNPP, Mckinsey
Estimated B2C eCommerce sales by country 2013 – 2016 (in USD billion)
2013 2014 2015E 2016E
China 181.6 274.6 358.6 439.7
Japan 118.6 127.1 135.5 143.1
Korea Selatan 18.5 20.2 21.9 23.7
India 16.3 20.7 25.7 30.3
Indonesia 1.8 2.6 3.6 4.9
EEE
Source : BPS, Bappenas, UNPP, Mckinsey
36
PT Mega Manunggal Property Tbk
Investment Consideration
Section 8
PT Mega Manunggal Property Tbk
First mover in provider of modern logistic property
Investment consideration
1
Provider of high quality logistic property2
Portfolio of assets that provide stable and recurring cash flow 3
Proven track record in land acquisition and delivery4
Strategically located logistic property in Indonesia5
Strong exposure to consumer sector that has high potential growth6
37
PT Mega Manunggal Property Tbk
Section 9
Appendix 1
PT Mega Manunggal Property Tbk
Audited Balance Sheet
Year to Dec 31, Rp mn 2012 2013 2014 2015 % YoY
Cash and Equivalents 6,309 6,368 11,311 382,973 3286%
Trade receivables 381 10,457 13,714 8,775 -36%
Other current assets 81,964 72,054 57,381 127,100 122%
Property & equipment 1,262 1,236 2,107 13,483 540%
Investment properties 1,409,229 1,748,426 2,036,806 2,388,400 17%
Other non-current assets 962 1,469 17,183 283,589.46 1550%
Total assets 1,500,107 1,840,010 2,138,502 3,204,321 50%
Trade payable 178,435 25,081 26,574 12,646 -52%
Unearned revenue 70,345 23,932 23,528 25,281 8%
Bank loans - short term 70,381 181,547 35,636 124,911,250 251%
Other current liabilities 146,123 373,842 50,859 12,630 -75%
Bank loan 325,859 360,440 541,288 460,646 -15%
Customer deposits - 3,665 7,845 11,353 45%
Other long term liabilities 3,149 3,259 4,917 5,826 19%
Total Liabilities 794,291 971,766 690,647 653,294 -5%
Minority interest - - 2,673 2,916 9%
Equity 705,815 868,242 1,445,182 2,548,111 76%38
PT Mega Manunggal Property Tbk
Audited Profit and Loss
Year to Dec 31, Rp mn 2012 2013 2014 2015 % YoY
Revenue 62,066 119,486 141,918 163,492 15%
Cost of revenue 3,886 5,940 13,084 16,059 23%
Gross profit 58,180 113,546 128,834 147,432 14%
G&A 9,340 7,944 14,616 25,754 76%
Operating profit 48,840 105,602 114,218 121,677 7%
EBITDA 49,296 106,268 115,031 122,852 7%
Net interest income (expense) -16,049 -35,991 -42,818 -23,640 -81%
Increase in fair value Invt Prop 357,511 222,424 261,127 64,787 -303%
Other items -17,964 -117,848 -23,165 31,822 37%
Profit before tax 372,338 174,187 309,363 131,003 -136%
Tax -6,298 -12,201 -14,192 -16,349 -15%
Proforma adjustment -52,110 -71,454 -8,482 - -100.0%
Net income 313,930 90,532 286,404 114,415 -60,1%
Core income -21,593 -14,180 40,479 78,567 94,1%
39
PT Mega Manunggal Property Tbk
Audited Cashflow
Rp mn 2014 2015 %Change
Cash flow from operating activities
Cash Receipt from Customer 154,744 191,312 24%
Interest Received 1,046 26,529 2437%
Cash Paid for Operating Expenses and Employees (12,981) (23,484) 81%
Payment to Supplier and Others (14,667) (51,923) 254%
Tax paid (13,208) (16,009) 21%
Interest paid (44,620) (50,840) 14%
Net cash provided by operating activities 70,315 75,586 7%
Cash flow from investing activities
Acquisition of Investment Properties 56,776 - -100%
Acquisition of Property and Equipment (93,660) (311,999) 233%
Advance for Purchase of property & equipment (14,850) (264,950) 1684%
Advances for Purchase Asset - (914)
Loan Receivables (56,408)
Acquisition of shares of subsidiary (40,469) -
Net Cash Used in Investing Activities (92,202) (634,271) 588%
Cash flow from financing activities
Loan Receipts from Related Parties 161,689 1,508 -99%
Payment to Related Parties (218,567) (17,826) -92%
Loan Receipts from Bank 235,210 14,957 -94%
Payment to Bank Loan (202,541) (55,985) -72%
Payment of consumer Financing Liabilities (1,188) (646) -46%
Paid-up capital stock non controlling 4
Receipt from Paid in Capital 55,000 987,702 1696%
Net Cash provided by Financing Activities 29,602 929,714 3044%
Changes in cash and cash equivalent 7,715 371,029 4709%
Effect of forex (2,772) 632 -123%
Beginning balance 6,368 11,311 78%
Ending balance 11,311 382,973 3784% 40
PT Mega Manunggal Property Tbk
End of presentation
Thank you
PT Mega Manunggal Property Tbk