Back to announcement
20240226_LPPF_Laporan Informasi dan Fakta Material_31580729_lamp3.pdf
Other Text extracted LPPFSource file signed link, expires in 15 minutes
Extracted text 24
Page 1
LPPF.IJ / LPPF.JK FY 2023 Earnings Call 26 February 2024
Page 2
Agenda
No Topic Page Presenter
1 Executive Summary 3–4 Monish Mansukhani
2 Financial Performance and Capital Allocation 5 – 11 Niraj Jain
3 Strategy Updates 12 – 20 Monish Mansukhani
4 Closing Remarks 21 – 22 Monish Mansukhani
2
Page 3
Executive Summary
Sales FY23: IDR 12.6Tn (+1.1% / SSSG • Strategic direction: Repositioning to relevant middle income customers, with
-2.4%). Performance affected by weak impact on store locations, merchandise, and customer experience.
Lebaran sales and anemic recovery in
subset of malls, leading to excess • Store network optimization: Expecting to open 4-6 new stores in 2024.
inventory that was not cleared in a timely Prioritizing the rejuvenation of high-impact stores. Identified 29 watch list
fashion. stores for rental renegotiation, downsizing, and potential closure of 10 stores
during the year.
Gross Margin FY23: 34.2% (vs. FY22:
35.7%) driven by aged inventory
• Merchandise transformation: Improving Direct Purchase (DP) offering
clearance.
through re-invigorated private labels while onboarding new, well-known
Consignment Vendors (CV) brands. Clearing inventory faster to maintain
EBITDA FY23: IDR 1.4Tn (vs. FY22: IDR
freshness, although this may have an impact on margins.
2.0Tn) from lower GM and 17% higher
operating expenses, including the
reduction of rental subsidies. • Digital: Extending in-store fulfilment to include CV inventory and expand
reach from 56 to 96 stores.
Net Income FY23: IDR 675Bn, with
IDR 200/share dividend proposed (67% • OPEX optimization: Review of cost base with particular attention on
Dividend Payout Ratio). improving productivity and securing performance-linked commercial terms.
3
Page 4
2023 Season Challenges & 2024 Opportunity
The key 2023 Lebaran season was challenging Opportunity in Lebaran 2024
• Challenging Lebaran due to unexpected delay in • While there remains uncertainty in trading performance, we are
THR payout, early Mudik, and other better planned and have taken a more conservative approach
macroeconomic factors.
• Fresh stocks planned tighter vs. 2023 with strategic promotional
planning to enhance sell through
• Lebaran planning had built up higher inventory,
staff, marketing and bazaars, which did not • New intake pricing more competitive vs. 2023 in key volume
materialize. areas
• More dynamic and timely trading of older merchandise
• DP underperformance in selective areas led to in order to reduce proportion of aged inventory
aging stock, which we began to clear during
4Q23 with discounts. • Prioritizing investment in high quality stores with higher
performance
• Store underperformance in certain malls was • Focusing more on rebalancing & multiskilling staff for agile
driven by poor post-COVID recovery. Stores in changes
these malls with low occupancy, traffic, and
maintenance are now under watch list. • More effective marketing planned, with greater use of digital
media for broader reach and greater segmentation
4
Page 5
154 Stores
82 Cities
600+ suppliers
94% local
9,092
employees
Financial Performance
and Capital Allocation
5
Page 6
Financial Highlights
Sales grew 1.1% mainly driven by new stores
Year Q4
In IDR Bn
2023 2022 % Growth 2023 2022 % Growth
Gross Sales 12,552 12,413 1.1% 2,937 2,929 0.3%
SSSG % -2.4% 20.8% -2.9% 2.4%
Gross Profit 4,295 4,429 -3.0% 939 1,039 -9.6%
Gross Margin % 34.2% 35.7% 32.0% 35.5%
OPEX (2,884) (2,461) 17.2% (663) (615) 7.9%
EBITDA 1,411 1,968 -28.3% 275 424 -35.1%
EBITDA Margin % 11.2% 15.9% 9.4% 14.5%
Net Income (Loss) 675 1,383 -51.2% 45 329 -86.4%
Net Income Margin % 5.4% 11.1% 1.5% 11.2%
6
Page 7
Sales Performance
Watch list stores dragging down overall performance
Store Performance Merchandise Performance
IDR Bn +1.1%
SSSG 12,413 12,552
-2.4%
30.5% 29.7%
Regular stores Watch-list stores
-1.5% -12.8%
69.5% 70.3%
The performance under watch list dragged
down the total performance
FY 2022 FY 2023
7
Page 8
Sales Performance Gross Sales by
Bali drove outside Java performance post-restriction Region (%)
FY 2023
SSSG Greater Jakarta 22.8%
Outside Java
FY : 1.6% Java exc Jkt 34.3%
Outside Java 42.9%
Sumatra Total Sales 100.0%
Kalimantan
Bali and East Indonesia
Greater Jakarta
SSSG East Java
Greater Jkt
West Java
FY : -2.0%
Central Java
SSSG
Java ex Jkt
FY : -3.7%
8
Page 9
Sales Performance
Active members jumped, with higher sales contribution, in line with more personalized values
Active loyalty members
8.6
6.9 3.2 Mn newly acquired members; ~60% of
2022 members returned to shop in 2023
4.0
2021 2022 2023
>232 Mn personalized messages sent in a
year through various CRM channels
Active member sales contribution
78.4%
65.9%
51.8%
NPS improved from 66 at December 2022 to
74 at December 2023 (63 at FY22 vs. 73 at
FY23)
2021 2022 2023
9
Page 10
Financial Highlights
Cash and Bank Balance at IDR 508 Bn
ASSET LIABILITIES & EQUITY
In IDR Bn Dec '23 Dec '22 In IDR Bn Dec '23 Dec '22
Cash and Bank Balance 508 354 Bank Loan 550 -
Trade Receivables 60 64 CV Trade Payables 770 664
Inventories 793 896 DP Trade Payables 457 546
Right-of-Use Assets 2,509 2,527 Lease Liabilities 3,051 2,933
Other Assets 1,306 1,223 Other Liabilities 1,022 1,026
Fixed Assets 705 686 Equity 31 580
Total Asset 5,880 5,750 Total Liabilities & Equity 5,880 5,750
Remarks:
• Bank loan utilization reduces from IDR 1,000Bn to IDR 550Bn, net debt at only IDR 42Bn.
• We have renewed our bank loan of IDR 1.7 Trn with better commercial terms with Bank CIMB Niaga.
10
Page 11
Capital Allocation
CAPITAL ALLOCATION | Capital Allocation Strategy
Balancing organic growth and shareholders value maximization
Capital well allocated to enhance shareholder value for forward growth
Capex Dividend
Continuous investment into the business IDR 200/share
Planned IDR 300 Bn
New Stores, Refurbishment, and
Information Technology
Business Shareholder’s Value
Acquisition Strategic Buyback
No investment planned No new share buyback plan
for 2024
11
Page 12
154 Stores
82 Cities
600+ suppliers
94% local
9,092
employees
Strategy Updates
12
Page 13
Strategy Highlights
Further progress on our previously stated strategic initiatives
Environmental,
Merchandise Full Store Network Omnichannel Loyalty & Operational OPEX Social, &
Potential Optimization Expansion Personalization Excellence Optimization Corporate
Governance
• Agile trading in • Focus on top • Expand fulfilment • Growing active • Improving store • Partnering with • Continued
season and post- stores, monitor 29 from stores members further navigation landlords to get progress on
season watch-list stores through performance- roadmap
• Onboard CV acquisitions, • Increasing linked including waste
• DP and CV • Selectively onto platform reactivations, touchpoints for commercial management,
refresh and expand, focusing and frequency improved terms diversity &
rationalization on quality instead drive convenience inclusion, and
• Improve labor
of quantity social impact
productivity
Key focus area to deliver
earnings growth in next 12 months
13
Page 14
Pants: SUKO, Men, Clean Cargo Pants, Dusty Pink
T-shirt: SUKO Ladies, Short Sleeve Baby Terry Oversize Crop, Taupe Grey
Cardigan: SUKO Ladies, Knit Cardigan, Vanilla
Merchandising Transformation
Initiatives to improve assortment
Focus on selected categories like denim and rationalize
underperforming segments like toys & accessories.
SUKO, our new DP brand, to expand from 34 stores to more than
60 by year end.
Refresh CV brands, particularly in top stores with 25 new, well
known & local trending brands.
Accelerate reach of our best CV brands, based on customer
demand, giving them more stores & space.
Faster sell through of merchandise underway for improved
freshness via increased promotions and dynamic trading.
14
Page 15
Store Network Optimization
Portfolio renewal in progress, with introduction MU&KU concept store planned for this year
Store Expansion & Rejuvenation Store Rationalization
• Selective store openings in strong catchment • 29 Stores under watch-list: Several stores faced
areas (4-6 stores) challenges due to low mall occupancy
• One MU&KU store opening expected in 4Q24 • Planned closure of 10 underperforming stores in 2024
with lease expiry, negative/marginal profitability
• Accelerating rebranding / rejuvenation options
for prioritized top stores to boost the store appeal • Exploring space rationalization for higher productivity
15
Page 16
Omnichannel Expansion
Further integrating technology and processes, while enhancing customer experience
Technology • Implement Order Management System & Warehouse Management System
and business
• Onboard 80% CV Brands for fulfilment from stores to expand product offering
integration
• Cultivate omnichannel customer engagement
• Improved assortment with CV onboarding
• Launch integrated social commerce
Customer • Improved rewards system with offline integration and tiered-based features
Experience like free shipping and exclusive sales previews
• Launch same-day delivery and multiple courier service providers
• Introduce live streaming on Matahari.com
16
Page 17
Loyalty & Personalization
Active members growing amid wider benefit options
Grow active members beyond 8.6 Mn members through new
members acquisitions & inactive customers reactivations
Expand benefit selections beyond points and promotions through
partnerships with merchants and third parties
Streamline benefit options both in-store & online for integrated
customer experience
Encourage higher basket size through hyper personalization
messages & benefits that induce multiple buys
17
Girl: Long sleeve midi dress | Aero Unicorn Jacket Hoodie Girl | Little M
Boy: Short sleeve T-shirt stripe Yarn-dyed | Little M Jacket Knit Quilting | Little M
Denim Short | Little M
Page 18
Operational Excellence
Improving customer journey, expanding touchpoints for improved customer engagement
Optimized space utilization will improve store Extending sales touchpoints out of stores (bazaars,
navigation and drive better customer Shop & Talk) is bearing fruit, with stronger
satisfaction awareness and increased contribution
18
Page 19
OPEX Optimization
Regularly identifying opportunities to improve productivity and cost structure
Exploring innovative ways to Piloting of performance Partnering with landlords
manage expenses amid incentives and productivity to secure
challenging sales growth benchmark exercise have performance-linked
environment shown results commercial terms
19
Page 20
Environmental, Social, Governance
Making progress in sustainability
Collected 1.8 tons of textile Increased the contribution of Supported 4,000+
waste via Post-consumer eco-friendly merchandise underprivileged children
Textile Waste Management to 2% of total private label with education, merchandise,
program for recycling assortment (apparel) and financial assistance
20
Page 21
154 Stores
82 Cities
600+ suppliers
94% local
9,092
employees
Closing Remarks
21
Page 22
Closing Remarks
Moving forward with strategic initiatives
Challenging 2023, but cautiously optimistic 2024 with better
Lebaran planning.
Store network optimization continues, with selective store
expansion (4-6 stores in 2024) and 29 watch-list stores.
Merchandise to be strengthened through revamped private labels
and addition of new CV brands.
To leverage technology to enable fulfilment from stores and
provide more payment and delivery options for customers.
Subject to statutory approval, dividend of IDR 200 per share is
proposed. No new share buyback plan is proposed.
22
Short Sleeve Blouse Skipper | Connexion
Long Pants Basic 2 Big Waistband | Connexion
Pointed Bustong Shoes | Connexion
Page 23
Contact us
PT Matahari Department Store Tbk
Menara Matahari 12th Floor,
Jl Boulevard Palem Raya No.7
Karawaci, Tangerang 15811, Indonesia
Phone: +6221 547 5228 | +62811 9610 1111
Email: ir@matahari.com
www.matahari.com
DISCLAIMER: This presentation has been prepared by PT Matahari Department Store Tbk (“LPPF” or “Company”) for
informational purposes. Neither this presentation nor any of its content may be reproduced, disclosed or used
without the prior written consent of the Company.
This presentation may contain forward looking statements which represent the Company’s present views on the
probable future events and financial plans. These views are based on current assumptions, are exposed to various
risks, and are subject to considerable changes at any time. The Company warrants no assurance that such outlook
will, in part or as a whole, eventually be materialized. Actual results may differ materially from those projected.
The information is current only as of its date and shall not, under any circumstances, create any implication that the
information contained therein is correct as of any time subsequent to the date thereof or that there has been no
change in the financial condition or affairs of LPPF since such date. This presentation may be updated from time to
time and there is no undertaking by LPPF to post any such amendments or supplements on this presentation.
The Company will not be responsible for any consequences resulting from the use of this presentation as well as the
reliance upon any opinion or statement contained herein or for any omission.
23
Page 24
Thank you
Names mentioned 2 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Matahari Department Store Tbk
p.23 ×4
Extraction attempts how the parser did, and what it refused
Nothing structured was extracted from this document — the attempts below say why.
No extraction attempted yet.