ANNUAL REVIEW 2010 AND TARGET 2011

PT. ADITYA MANDIRI SEJAHTERA

VISION

To be the number one Indonesian Retail Fashion Company that serves various level customers in the region, with a vertical integration process from design to the end consumers, where their people can grow expressed their self, unlimited, in the friendly environment.Furthermore, to expand the company ability to the unlimited sector, where we can divert our resources so that we can improve our country, and prosperity.

MISSIO

N

• Improve the company operations into the most efficient and profitability growth.

• Become the no 1 Fashion Retail Company in Indonesia

• To be the first Indonesian Retail that successfully develop and grow the vertical integration process, nation wide.

2010 STRATEGIC OVERVIEW

ORGANIZATIONAL STRUCTURE

•Slim But Energic•Efficient and Flexible•One roof to improve communication

FINANCIAL•Control of Cost•Benchmarking•Presenting Accurate Data, timely•Dynamic Financial

INFORMATION TECHNOLOGY

•System Upgraded•Complete and Informative data•Accurate data, timely

STORE ENVIRONTMENT

• Improve store Ambiance

• Modern and Friendly

DRIVING SALES•Average Purchase•Conversion Rate•SALE/events•Benchmarking•Will to Sell

MARKETING

•Strategic Marketing Plan•Visual Merchandizing•Service Standard

INVESTMENT IN OUR PEOPLE

•Training & Development•Reward & Accountability

MERCHANDIZE/PRODUCT

• Merch. Re categorize• High Quality w/

affordable Price• Continually Fresh• Strategic Purchasing

ROADMAP TO IMPROVED SALES/PROFITABILITYDRIVING A SELLING CULTURE

RETAIL GRO

WTH

STRATEGY

PT. AMS

STRATEGY

RETAIL FORMAT

TARGET MARKET

EXISTING NEW

EXISTING

MARKET PENETRATION• + Economy pack item• Store resizing. Rubah small store

menjadi medium size store (+ 100 sqm)

• Marketing program

MARKET DVELOPMENT / EXPANSION• Buka temporary store untuk melihat

penerimaan pasar di lokasi-lokasi pasar yg baru.

• Convert menjadi permanent store if possible.

NEW

RETAIL FORMAT DEVELOPMENT• Develop “new Bazaar” concept store di

setiap kota

DIVERSIFICATION• Mengembangkan brand Mississippi dan

Celcius untuk differensiasi pasar.

RETAIL GRO

WTH

STRATEGY

RETAIL GRO

WTH

STRATEGY

2010 – QUANTITATIVE TARGET

ACHIEVEM

ENT 2010

IWAN FASHIONTOTAL AMS

MISSISSIPPI

CELCIUS -

5,000,000,000

10,000,000,000

15,000,000,000

20,000,000,000

25,000,000,000

SALES ACHIEVEMENT

2009 2010 Trgt 2010

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -

2,000,000,000 4,000,000,000 6,000,000,000 8,000,000,000

10,000,000,000 12,000,000,000

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -

1,000,000,000

2,000,000,000

3,000,000,000

4,000,000,000

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -

1,000,000,000 2,000,000,000 3,000,000,000 4,000,000,000 5,000,000,000

2010 RESULT

OUR ACHIEVEMENT

2009 2010 D

No. of Stores 97 120 23

Square Meter 8.677 11.331 2.654

Sales (Rp. Juta) 97.363 117.218 19.855

Gross Margin (Rp.juta) 42.753 61.628 18.875

Sales Productivity (Rp juta/sqm) 11,221 10,345 -876

GM Productivity (Rp. juta/sqm) 4,927 5,439 512

Store Footage (sqm) 89,45 94,43 4,98

# of Employee 1.200 1.150 -50

GMROL (Rp.juta/HQ) 35,627 53,590 17.963

2010 RESULT

OUR ACHIEVEMENT

2009 2010 D

Inventory @ Closing Year (Rp juta @cost) 31.082 54.755 23.673

GMROI 1.09 1.44 0.35

Inventory Turnover 3.13 2.14 -0.99

Personel Cost (Store level) 9.5% 10.5% 1.0%

Operating Exp. (Store level) 31.1% 36.6% -5.5%

Nett Profit -5.1% 3.2% 8.3%

OBJECTIVE

TARGET 2010

TOTAL SALES: Rp. 150.510.000.000F3 : Rp.

83,385,000,000 RM : Rp.

30,120,000,000RC : Rp.

28,690,000,000Bazaar : Rp.

8,315,000,000GROSS MARGIN :

TEORITICAL MARGIN 60 % ACTUAL MARGIN > 50 %

OPERATING EXP.: Rp. 60.860.436.000,- (< 40%)HO : Rp.

16,122,131,000STORE : Rp.

44,738,149,000EBIT : Rp. 12.315.824.000 (8,2%)

ACHIEVEMENT 2010

Rp. 117.218.027.743Rp. 64.992.753.903Rp. 21.251.376.330Rp. 24.785.113.910Rp. 6.188.783.600

52,6%Rp. 52.741.059.760Rp. 9.887.029.220Rp. 42.854.030.540

77.9%77.9%70.6%86.4%74.4%

105%-99%113%104%

%

THE STRATEG

YAND WHAT WE HAVE DONE

MARKET SEGMENTATION• Regular Store

• Targeting to middle –middle up social economic class (SES B+, B)• Secondary Market to the “me too”

BRAND STRATEGY• Promoting the Mississippi and Celcius brand as a premium-middle up market

product. • Maintain Iwan Fashion brand as a middle lower class, but starting to

diversified to middle up market through premium store ambiance.

THE STRATEG

YAND WHAT WE HAVE DONE

BRAND AWARENESS• Improving the awareness of Mississippi, Celcius and Iwan Fashion brand

through Brand Consistency and well planned marketing activity• Start to introduce “new brand” as a single identity product to launce as a

“new store”PRODUCT DEVELOPMENT & PURCHASING

• Improving product quality and design to compete the middle up market. • Expanding overseas (CHINA) purchasing up to 70% of total• Preparing new brand launching by Q3 2010• In store zoning by brand (F3)

THE STRATEG

YAND WHAT WE HAVE DONE

STORE CONCEPTAligning store ambiance and fit out with Brand Image and awareness for

creating differentiation and improve the brand competition position.EXPANSION STRATEGY

Expand to all primary city in Indonesia for complete brand force.Expand-ready to all primary and secondary city, with full information on hand.Start studying for “GO INTERNATIONAL” project.

THE STRATEG

YAND WHAT WE HAVE DONE

PROCUREMENTCost reduction program on all aspectReduce buying cost by moving up stream

FINANCIAL STRATEGYStrictly Cost Control Management,Dynamic Treasury Management

IT STRATEGYLeap to next phase

THE STRATEG

YAND WHAT WE HAVE DONE

CORPORATE IDENTITYCorporate image “face lift”

HUMAN RESOURCESPreparing all our “partner” for go global.

Continuous skill training for all level of staff

ACHIEVEM

ENT 2010

IWAN FASHIONTOTAL AMS

MISSISSIPPI

CELCIUS

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

PURCHASE (pcs)

TARGET ACTUAL

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -

100,000 200,000 300,000 400,000 500,000

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -

50,000 100,000 150,000 200,000 250,000

MISSISSIPPI Series2

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -

50,000 100,000 150,000 200,000 250,000

CELCIUS Series2

COMPANY GROWTH 2005 - 2010

COM

PANY G

ROW

TH 2005 - 2010

IWAN FASHIONTOTAL AMS

MISSISSIPPI

CELCIUS

2005 2006 2007 2008 2009 20100

20,000,000,000

40,000,000,000

60,000,000,000

80,000,000,000

100,000,000,000

120,000,000,000

140,000,000,000

SALES

2005 2006 2007 2008 2009 20100

5,000,000,000

10,000,000,000

15,000,000,000

20,000,000,000

25,000,000,000

2005 2006 2007 2008 2009 20100

5,000,000,000

10,000,000,000

15,000,000,000

20,000,000,000

25,000,000,000

2005 2006 2007 2008 2009 20100

20,000,000,000

40,000,000,000

60,000,000,000

80,000,000,000

100,000,000,000

IWAN FASHION

2005 2006 2007 2008 2009 2010

33.53%39.27%

44.37% 45.55%

40.68%

48.39%42.60% 44.60%

43.10% 44.30%

46.70%TOTAL AMS

MISSISSIPPI

2005 2006 2007 2008 2009 2010

35.63% 39.95%

43.94% 50.95% 51.15% 58.80%42.60% 44.60%

43.10% 44.30% 46.70%

CELCIUS

2005 2006 2007 2008 2009 2010

35.04%43.29%

48.15% 51.34% 50.12% 59.26%44.60% 47.50%

45.70% 46.00% 48.20%

2005 2006 2007 2008 2009 2010

33.92%39.68%

44.69%47.39% 43.91%

52.58%

43.30% 42.70%

41.10% 43.50% 44.30%

GROSS MARGIN

GROSS MARGIN BENCHMARK

COM

PANY G

ROW

TH 2005 - 2010

IWAN FASHION

2005 2006 2007 2008 2009 2010-0.04%

5.48% 6.39% 7.27%

-10.67%

-4.27%

1.70% 2.00% 2.30% 1.60% 1.40%

TOTAL AMS

MISSISSIPPI

2005 2006 2007 2008 2009 2010

7.19%

13.45%10.68%

16.97%

0.82%

9.24%

1.70% 2.00% 2.30% 1.60%1.40%

CELCIUS

2005 2006 2007 2008 2009 20101.02%

10.19%12.98%

18.01%11.80%

19.45%

1.70%2.70% 2.80% 0.90% 2.00%

PROFIT BENCHMARK

2005 2006 2007 2008 2009 2010

1.04%

7.39% 7.91%10.62%

-5.12%

3.19%3.90%

1.90%1.60%

2.40%

2.60%

NET PROFIT

PROFIT BENCHMARK

COM

PANY G

ROW

TH 2005 - 2010

IWAN FASHIONTOTAL AMS

MISSISSIPPI

CELCIUS

2005 2006 2007 2008 2009 20100.0

1.0

2.0

3.0

4.0

5.0

6.0

INVENTORY TURNOVER

TURNOVER BENCHMARK

2005 2006 2007 2008 2009 20100.01.02.03.04.05.06.07.0

2005 2006 2007 2008 2009 20100.01.02.03.04.05.06.0

2005 2006 2007 2008 2009 20100.01.02.03.04.05.0

COM

PANY G

ROW

TH 2005 - 2010

IWAN FASHIONTOTAL AMS

MISSISSIPPI

CELCIUS

2005 2006 2007 2008 2009 2010

0

10,000,000,000

20,000,000,000

30,000,000,000

40,000,000,000

50,000,000,000

60,000,000,000

INVENTORY 2005 2006 2007 2008 2009 2010

010,000,000,00020,000,000,00030,000,000,00040,000,000,000

2005 2006 2007 2008 2009 2010

010,000,000,00020,000,000,00030,000,000,00040,000,000,000

2005 2006 2007 2008 2009 2010

05,000,000,000

10,000,000,00015,000,000,000

COM

PANY G

ROW

TH 2005 - 2010

IWAN FASHIONTOTAL AMS

MISSISSIPPI

CELCIUS

2005 2006 2007 2008 2009 2010

1.92

2.29

2.00

1.51

1.09

1.44

2.00

GMROI

GMROI Series2

2005 2006 2007 2008 2009 2010

2.01

2.302.07

1.48

1.011.35

2.00

2005 2006 2007 2008 2009 2010

2.012.39

1.651.40 1.59

0.98

2.00

2005 2006 2007 2008 2009 2010

1.14

1.992.31

1.81 1.74

1.16

2.00

COM

PANY G

ROW

TH 2005 - 2010

………. PERCEPTION???

AN IMPRESSION PERSEPTION

"Courage is what it takes to stand up and speak.

Courage is also what it takes to sit down and listen.”

-- Sir Winston Churchill