ekspres mutiara

Company Presentation
Due Diligence Meeting & Public Expose
Agenda
1. Business overview
2. Industry overview
3. Investment highlights
4. Financial overview
5. Appendix
Due Diligence Meeting & Public Expose
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Presentation2
Care &
Commitment
Motivation &
Inspiration
Persistence
Teamwork & Discipline
1. Business Overview
Due Diligence Meeting & Public Expose
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Indonesia
 24+ years of business operations
 11,000+ regular taxi fleet in H1Y2014
 Supported by more than 11,000 primary and
Taksi Premium
 One of the leading transportation operator in
Taksi Regular
Express Group Today
VATB
13,000 reserve drivers
Due Diligence Meeting & Public Expose
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Board of Director
Professional management with various experience in transportation industry
President Director
Director
Director
Independent Director
Daniel Podiman
Herwan Gozali
David Santoso
Shafruhan Sinungan
 President Director since
Agustus1999
 >20 year experience in taxi
industry
 COO since Agustus1999
 >20 year experience in taxi
industry
 CFO since September
2007
 >7 year in taxi industry
 Director since September
2012
 >12 year in Organda DKI
Due Diligence Meeting & Public Expose
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Commissioner
Commissioner effectively monitoring Company’s operational standard
President
Commissioner
Commissioner
Commissioner
Independent
Commissioner
Independent
Commissioner
Stephen K. Sulistyo
Darjoto Setyawan
Tan Tjoe Liang
S.Y. Wenas
Paul Capelle
 Since March 2012
 Since June 2010
 Since March 2012
 Since July 2012
 Join the Company as
 Currently is Managing
 Currently is Managing
 Previously served as Deputy
Commissioner in June 2010
 Currently is the Senior
Managing Director PT
Rajawali Corpora (2010now)
Director of Mining and
Resources PT Rajawali
Corpora (2005-now)
Director PT Rajawali
Corpora (1993-now)
Operations of Indonesian
National Police Force (20092010) and Head of Police
Mobile Brigade Corps (20032009)
 Since July 2012
 Currently act as member of
BWPT audit comiitee (2012now), Commissioner of PT
Aini (2012-now), member of
audit committee at WINS
(2011-now) and President
Commissioner of JSPT
(2011-now)
Due Diligence Meeting & Public Expose
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Evolution of Express Group
Start / invent partnership scheme
Track
Record
1989
1994
2002
2004
Begin major expansion
2005
2008
2010
2011
A
IPO
2012
24+ years of
track record
with the same
management
2013
UNDP recognition ISO9001:2008 implementation
Start commercial operation
Commission-based
Partnership-scheme
B
Regular Taxi
Business
Evolution
Pioneering
business model
with integrated
offering
Greater Jakarta, Surabaya, Semarang and Medan
Salary + Commission
VATB2 & Premium Taxi3
Greater Jakarta, Bali, Lombok, Bandung
1,000 fold increase in fleet size since inception
1
10,000+
C
8,035
6,002
Fleet size
Profile
Fleet profile
demonstrates
ability to grow
and expand
4,922
3,198
1,000+
10
2009
2010
2011
2012
2013
Premier Transportation Operator with a proven operating and growth track record in Indonesia
Note: 1 Unit by end of 2013 2 On a Salary scheme; 3 On a Commission scheme
Due Diligence Meeting & Public Expose
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Express Group Corporate Overview
100%
20%
Regular Taxi
Premium Taxi
Approx. 85% of YTD December 2013
Revenue
Approx. 85% of 6 month period 2014
Revenue (unaudited)
VATB
Approx. 15% of YTD December 2013
Revenue
Approx. 15% of 6 month period 2014
Revenue (unaudited)
100%
Bali, Bandung,
Jakarta
TAXIS
Car Rental
Product offering
Limousine
service
20%
Bali,
Lombok
Eagle High
Due Diligence Meeting & Public Expose
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Express Group Corporate Structure
ETU
99,8000%
MKS
(Jakarta)
Premium Taxi
Regular Taxi
SIP
(Jakarta)
ESBC
(Bekasi)
99,9996%
99,8000%
FMT
(Tangerang)
EKL
(Depok)
99,9967%
99,6000%
99,9960%
99,6000%
WMK
(Tangerang)
99,9600%
99,6000%
MEP
(Bekasi)
EKP
(Surabaya)
99,9000%
99,0000%
SEP
(Semarang)
ISL
(Surabaya)
TSS
(Jakarta)
EMK
(Bekasi)
ESU
(Padang)
VATB
19,9600%
EKJJ
(Jakarta)
99,8000%
ELN
(Medan)
19,9600%
19,9600%
EMP
(Jakarta, Bali,
Bandung)
NT
(Bali)
ERU
(Lombok)
99,9000%
99,8857%
99,9900%
EKL
EKP
ELN
EMP
ESBC
FMT
ISL
MEP
MKS
:
:
:
:
:
:
:
:
:
PT Express Kencana Lestari
PT Express Kartika Perdana
PT Express Limo Nusantara
PT Ekspres Mulia Perdana
PT Ekspres Sarana Batu Ceper
PT Fajar Mutiara Timur
PT Indo Semesta Luhur
PT Mutiara Express Perdana
PT Mutiara Kencana Sejahtera
SEP
SIP
TSS
WMK
EMK
ESU
EKJJ
ERU
NT
:
:
:
:
:
:
:
:
:
PT Satria Express Perdana
PT Semesta Indoprima
PT Tulus Sinar Selatan
PT Wahyu Mustika Kinasih
PT Ekspres Mulia Kencana
PT Ekspres Sabana Utama
PT Express Kencanakelola Jayajasa
PT Express Rinjani Utama
PT Nirbaya Transarana
Due Diligence Meeting & Public Expose
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Snapshot of Express’ Business Operations…
Regular Taxi
 108 licensed premium taxis as of December 2013 through
 Operates principally in Greater Jakarta, Surabaya, Semarang
and Medan
 In preparation for expansion to other cities
associated company
 Taxi service provided under the Tiara Express line
 Operate in Greater Jakarta area
 Comprises primarily of limousine services in Bandung, Bali
VATB
Business
Segments
 More than 10,800 fleet as of June 2014
Premium Taxi
Overview
and Lombok, operated by a subsidiary and through an
associated company
 Commenced operations in Greater Jakarta and Bandung in
2012
 Expand into charter bus services with another new additional
bus targeted to be fully purchased by the end of Y2014
Due Diligence Meeting & Public Expose
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… and its geographical locations
Strategically located business operations with strong growth potential
Key Highlights
Medan
 Rapidly growing population in key
cities
 Increasing business travels due
to strong economic growth
Padang
 Increased intra-city transportation
as other key cities grow
 Expected strong growth in tourist
Jadetabek
areas like Bali and Lombok etc
All business line
Semarang
Bandung
Surabaya
Regular Taxi
Bali
Lombok
VATB
New city for Regular Taxi operational expansion in
2014
Due Diligence Meeting & Public Expose
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Presentation2
Care &
Commitment
Motivation &
Inspiration
Persistence
Teamwork & Discipline
2. Industry Overview
Due Diligence Meeting & Public Expose
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Huge untapped market potential
 Demand for ground transportation has continued to
Demand (taxi ridership in mm)
766
637
213
241
259
292
338
393
456
show an upward trend in recent years
 Indonesia’s ridership in the taxi industry has grown at
an average of approximately 12.3% since 2007 to 2011
 Expected growth in ridership from 2012E to 2016E is
538
at a CAGR of 18.2% which is higher than historical
rates
 Indonesia still has large untapped potential in the
2007 2008 2009 2010 2011 2012E2013E2014E2015E2016E
Supply (taxi fleet size in ‘000s)
ground transportation sector vis-à-vis other Southeast
Asian countries
Large untapped potential in Indonesia
128
Taxi per 1,000 people in SEA as of year-end 20111
5.20
109
50
52
52
57
59
71
81
3.12
94
0.24
Indonesia
Malaysia
Singapore
2007 2008 2009 2010 2011 2012E2013E2014E2015E2016E
Source: Global Insight, Euromonitor report as of July 2012
Note; 1 Based on 59.1K taxis in Indonesia, 90.0K taxis in Malaysia, and 27.0K taxis in Singapore; Based on 242.3mm population in Indonesia, 28.9mm population in Malaysia, and 5.2mm
population in Singapore
Due Diligence Meeting & Public Expose
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Favorable structural dynamics
Lack of
public
transport
systems
 Lack of reliable rapid mass transportation
 Trouble from traffic congestions deters
commuters to use own vehicles
 Grant tax facility to claim back luxury tax
Government
stimulate
growth
incurred for taxi companies
 Increase parking tariff to limit the usage of
private vehicles
 New policy on minimum down payments for
Regulatory
environment
car ownership limits the growth of private
vehicles
 Increasing fuel prices discourage people to buy
private vehicles
Due Diligence Meeting & Public Expose
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Overview of Indonesia taxi industry
Market size¹ (in Rp.bn)
Breakdown by vehicle type and geography
0.22 0.22 0.22 0.24 0.24 0.29 0.33 0.38 0.43 0.50
11,767
4,114 5,066
3,232
2,635
1,982 2,346
6,183
7,639
% of 2011 market size
Luxury Car3
6.2%
9,405
Saloon2
Standard
93.8%
Others
28.7%
Greater Jakarta
65.7%
Bali
5.6%
2007 2008 2009 2010 2011 2012E2013E2014E2015E2016E
By geography
By vehicle type
Taxis per 1,000 people
Competitive landscape
Key players overview
% of 2011 fleet – Indonesia taxi market
Business model
Fleet (‘000s)4
Company A
Company A
10.2%
Approx. 45% of
market share
controlled by
top 4 players
Company B
Company C
0%
10%
20%
30%
Commission based
15.7
Partnership scheme
8.0
40%
Source: Euromonitor report as of July 2012
¹ Refers to the consumer spend on Taxi Services stemming from both “Standard Saloon” and “Luxury Car” types; 2 “Standard Saloon” is defined to be a regular car, below 2000cc; 3 “Luxury
Car” is defined to be a high-end car, above 2000cc; 4 As of year end 2011
Due Diligence Meeting & Public Expose
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Presentation2
Care &
Commitment
Motivation &
Inspiration
Persistence
Teamwork & Discipline
3. Investment Highlights
Due Diligence Meeting & Public Expose
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Investment Highlights
One of the leading taxi provide
with premium brand image and
excellent services
Pioneering
business
model with
partnership
scheme
Solid support from major
shareholder
We offer opportunities for
our investor to take part in
the rapid growth of
Indonesian Economic
Development, especially in
land transportation
services
Enhancement of service
quality with newest
innovation
Business
with strong
and stable
cash flow
stream
Strong platform with proven track
record
Due Diligence Meeting & Public Expose
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1
Express’ second largest market share has translated premium brand equity
Awards received for premium brand imaging and top customer services
Indonesia New Best Emiten 2013 from Warta Ekonomi
Silver Brand Champion of Taxi Operator in Jakarta, from Markplus Insight and Marketeers Magazine
The Best Innovation in Marketing and The Best in Social Marketing from Marketing Magazine
Indonesia Superbrand 2013 from Superbrands Indonesia
SPEx2 2013 Award, The Best in Inclusive Strategy, from GML and Fortune Indonesia
The Most Impressive SME Report 2012 from UNCSR
Market position as an industry leader translates into key tangible benefits to Express
Due Diligence Meeting & Public Expose
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Pioneering business model
PARTNERSHIP SCHEME MODEL
 Provides security deposit and pays a fixed
 Purchases and operates the taxi
 Provides training and facilities
revenue stream to company
 Reward eligible driver with the option to purchase
the vehicle after 5 – 7 years if certain criteria are met
Drivers
Express
2
Pioneering business model aligns and marries the key incentives of all key parties resulting in successful end results
Express Group
Customers / Drivers
+ High vehicle utilization rate with strong
emphasis on driver performance
+ Attracts strong pool of quality of drivers with
Drivers
+ Strong sense of ownership forging
entrepreneurial mindset
+ Opportunity to own a vehicle creates motivation
high retention rates
to perform
+ Well maintained fleet to serve its customers
+ Drivers highly motivated to provide high
quality service - creates strong equity
branding for company
+ High motivation by drivers to earn additional
income
+ Opportunity to train and upgrade improving
overall customer service
Customers
+ High quality services and service consistency
Alignment of key incentives between parties translates into a consistently
high quality of service to customers
Due Diligence Meeting & Public Expose
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3
Enhancement of Quality Services with Newest Innovation
Multi Purpose
Vehicle
Regular Taxi
Payment with Express Card
or BCA Flazz could be used
for
Centralized
Call Center
(021) 500-122
Innovation for the Enhancement of Quality Services
Due Diligence Meeting & Public Expose
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4
Strong scalable platform with a proven growth track record
Simple & Scalable
platform
Obtain driver licenses
Converting awarded
taxi licenses to
utilized new fleet
Operational and
income
generating fleet
Income to Express
directly correlated to
scale of operations
Income to Express
Regular Taxi Fleet Size
3,198
2009
6,002
4,922
2010
2011
8,035
2012
10,029
11,000
2013
H1Y2014
EBITDA (Rp.mm)
500
400
38%
300
442
200
100
120
159
2009
2010
232
327
254
2011
2012
2013
H1Y2014*
Simple, scalable business model which directly correlates income from
our regular taxi operations to the size of our fleet
Due Diligence Meeting & Public Expose
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5
Resilient and stable cash business
Key highlights
 Stable cash inflows
 Initial security deposit of Rp.7.5mm1 collected
 Daily collection of fixed driver tariff fee of Rp.240,0001,2 provides stable cash inflows
 Rp.40,0001,2 collected on a daily basis as contribution towards maintenance reserve
 Pricing flexibility
 Ability to revise deposit amount and introduce different tariffs across drivers and vehicles
depending on market conditions
 Fixed operational costs
 Bulk of the operational costs include wages and salaries for staff and insurance costs for the
taxis
 Regular taxi business segments also do not bear the fuel and maintenance costs
Pioneering cash management system provides us with a sustainable and
positive source of working capital and allows for stable and attractive EBITDA margins
Note: 1 As of December 2013 ; 2 From regular taxi drivers
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6
…coupled with strong sponsor support
 Established 1st privately owned GSM provider (XL)
 Established 1st free-to-air television provider (RCTI)
 Developed Express into No. 2 player in Indonesia
Innovative
&
entrepreneurial
creativity
 Manages a portfolio of
investments in hotels,
property, agriculture,
infrastructure and
mining
 Relationships with
multinational companies
across a variety of
industries
Proven
capital
allocation /
execution
expertise
Strong
linkage to
international &
local
investors
Track record
of value
creation
 Turn around of Bentoel1
 Significantly increased
the value of Semen
Gresik1
Strong
domestic
access in
Indonesia
 Strong domestic network
 Strong foothold in various
strategic sectors in Indonesia
(Hotels, property, agriculture,
infrastructure and mining)
1
Note: Indonesian publicly listed company
Due Diligence Meeting & Public Expose
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Our strategic roadmap going forward
1
ACCELERATE MARKET POSITION
2
 Further expand market share in
EXPAND VALUE ADD SPECTRUM
 Further expand into Premium and
Greater Jakarta and other regions
through fleet expansion
value-added
transportation businesses
 Fortify market position in tourist
 Diversify into chartered bus
destinations (Bali, Lombok,
Bandung)
business to further integrate service
offering
3
INCREASED FOCUS ON
TECHNOLOGY & HUMAN
RESOURCES
 Equip GPS and calling service
gadgets into the taxi fleet
 Roll out of pre-paid services to
expand corporate base
 Training for drivers and
employees
Due Diligence Meeting & Public Expose
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Presentation2
Care &
Commitment
Motivation &
Inspiration
Persistence
Teamwork & Discipline
4. Financial Highlight
Due Diligence Meeting & Public Expose
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Key Revenue Drivers
Regular Taxi Segments
VATB Segments
Revenue Breakdown
VATB
12%
Revenue
drivers
No. of
License
Fleet
Fixed tariffs
Ridership
Volume
FY2012A
Regular
Taxi
88%
Tariffs
FY2013A
VATB
16%
Revenue
Revenue
 Current fixed tariffs: Rp240,000
 Historical tariff growth a good measure
of forward rates
 Fleet size increase to more than
10,800 by June 2014 with revenue
constitutes approx. 85% for 6 month
period ended June 2014
 Relatively predictable revenue given
 Rental revenue constitutes approx. 15%
of FY13A revenue
 VATB revenue constitutes approx. 15%
for revenue of 6 month period ended 30
June 2014
 Historical revenue split between
regular and VATB a good measure of
contribution in the near term
Regular
Taxi
85%
 Regular taxi will continue to form
bulk of the contribution in the near
term despite planned VATB
expansion initiative
secured fixed tariffs which will start
contributing at the moment when taxi
fleet become operational
Due Diligence Meeting & Public Expose
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Key Financial Summary
Significant increase in our financial profile resulting from the aggressive
expansion in fleet size starting from 2010
Revenue (Rp billion)
687
521
38%
409
338
188
219
2009
2010
2011
2012
2013
H1Y2014*
Gross Profit (Rp billion)
72%
138
25
2009
184
Aggresive expansion
resulted an increasing
of Revenue and Gross
Profit, showing a
promising
development of our
Company
220
136
56
2010
2011
2012
2013
H1Y2014*
Source: Company audited financial statements
* Unaudied numbers as per June 2014
Due Diligence Meeting & Public Expose
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Key Financial Summary
As we’re reached total unit of 11,000 on Regular taxi, growth of Net Income shows
a promising development of our Company
EBITDA (Rp billion)
38%
120
159
2009
2010
232
2011
327
442
254
2012
2013
H1Y2014*
Net Income (Rp billion)
161%
133
3
35
2009
2010
60
2011
79
2012
79
2013
H1Y2014*
Source: Company audited financial statements;
* Unaudied numbers as per June 2014
Due Diligence Meeting & Public Expose
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Return of Investment
Return on Assets
Return on Equity
29,1%
5,4%
25,0%
6,2%
6,0%
4,5%
16,6%
11,6%
6,0%
0,9%
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
The growing profile of Return of Investment
as well as the increasing of Company’s ability in creating profitability
will be supported by the positive growing of transportation sector in Indonesia
Due Diligence Meeting & Public Expose
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Key Takeaways
Strong scalable platform with a proven growth track record
Pioneering partnership model that aligns interest
Young and well-maintained taxi fleet
Large & growing pool of drivers to increase market position
Resilient and growing cash flow profile
Innovative cash management system
Strong management with a proven operational record
Strong sponsor with a proven track record to add value
Due Diligence Meeting & Public Expose
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Presentation2
Thank You
PT Express Transindo Utama Tbk
Gedung Express
Jl. Sukarjo Wiryopranoto No.11
Jakarta 11160
Telepon : (021) 2650 7000
Faksmili : (021) 2650 7008
Email
: [email protected]
Website : www.expressgroup.co.id
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