Pitchbook US template - expressgroup.co.id€¦ · Due Diligence Meeting & Public Expose ar aksi m B Express Group Today 3 One of the leading transportation operator in Indonesia

Due Diligence Meeting & Public Expose

Company Presentation


Agenda

1

2. Industry overview

3. Investment highlights

4. Financial overview

1. Business overview

5. Appendix


Presentation2

Teamwork & Discipline

Motivation & Inspiration

Care & Commitment

Persistence

1. Business Overview

2


Ta

ks

i R

eg

ula

r Ta

ks

i P

rem

ium

V

AT

B

Express Group Today

3

One of the leading transportation operator in

Indonesia

24+ years of business operations

11,000+ regular taxi fleet in H1Y2014

Supported by more than 11,000 primary and

13,000 reserve drivers


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

Board of Director

Professional management with various experience in transportation industry

President Director

President Director since

Agustus1999

>20 year experience in taxi

industry

Daniel Podiman

Director

Herwan Gozali

Director

David Santoso

Independent Director

Shafruhan Sinungan

4


Commissioner

Commissioner effectively monitoring Company’s operational standard

Independent

Commissioner

Since July 2012

Previously served as Deputy

Operations of Indonesian

National Police Force (2009-

2010) and Head of Police

Mobile Brigade Corps (2003-

2009)

S.Y. Wenas

Independent

Commissioner

Since July 2012

Currently act as member of

BWPT audit comiitee (2012-

now), Commissioner of PT

Aini (2012-now), member of

audit committee at WINS

(2011-now) and President

Commissioner of JSPT

(2011-now)

Paul Capelle

President

Commissioner

Since March 2012

Join the Company as

Commissioner in June 2010

Currently is the Senior

Managing Director PT

Rajawali Corpora (2010-

now)

Stephen K. Sulistyo

Commissioner Commissioner

Since March 2012

Currently is Managing

Director PT Rajawali

Corpora (1993-now)

Tan Tjoe Liang

Since June 2010

Currently is Managing

Director of Mining and

Resources PT Rajawali

Corpora (2005-now)

Darjoto Setyawan

Commissioner

5


Evolution of Express Group

6

2009 2010 2011 2012 2013

Greater Jakarta, Bali, Lombok, Bandung

Track

Record

Business

Evolution

Commission-based Partnership-scheme

Regular Taxi

VATB2 & Premium Taxi3

Salary + Commission

Greater Jakarta, Surabaya, Semarang and Medan

Fleet size

Profile

10

1,000+

3,198 4,922

6,002

10,000+1

24+ years of

track record

with the same

management

A

Pioneering

business model

with integrated

offering

B

Fleet profile

demonstrates

ability to grow

and expand

C 1,000 fold increase in fleet size since inception

Premier Transportation Operator with a proven operating and growth track record in Indonesia

1989 1994 2002 2004 2005 2008 2010 2011 2012

Start commercial operation UNDP recognition

Start / invent partnership scheme Begin major expansion

ISO9001:2008 implementation

Note: 1 Unit by end of 2013 2 On a Salary scheme; 3 On a Commission scheme

2013

8,035

IPO

Due Diligence Meeting & Public Expose 7

Express Group Corporate Overview

Regular Taxi Premium Taxi VATB

100% 20%

Bali, Bandung,

Jakarta

Bali,

Lombok

TAXIS Car Rental Eagle High Limousine

service Product offering

Approx. 85% of YTD December 2013

Revenue Approx. 15% of YTD December 2013

Revenue

Approx. 85% of 6 month period 2014

Revenue (unaudited)

Approx. 15% of 6 month period 2014

Revenue (unaudited)

100% 20%


Express Group Corporate Structure

Premium Taxi VATB

EKJJ

(Jakarta)

EMP

(Jakarta, Bali,

Bandung)

NT

(Bali)

ERU

(Lombok)

SIP

(Jakarta)

ESBC

(Bekasi)

ISL

(Surabaya)

WMK

(Tangerang)

EKP

(Surabaya)

ESU

(Padang)

FMT

(Tangerang)

EKL

(Depok)

ELN

(Medan)

MEP

(Bekasi)

SEP

(Semarang)

99,8000%

19,9600%

19,9600%

19,9600% 99,8000%

99,6000%

99,6000%

99,6000%

99,0000%

99,9996%

99,9967%

99,9960%

99,9600%

99,9000%

99,9900%

TSS

(Jakarta)

99,9000%

EMK

(Bekasi) 99,8857%

Regular Taxi

ETU 99,8000%

MKS

(Jakarta)

EKL : PT Express Kencana Lestari

EKP : PT Express Kartika Perdana

ELN : PT Express Limo Nusantara

EMP : PT Ekspres Mulia Perdana

ESBC : PT Ekspres Sarana Batu Ceper

FMT : PT Fajar Mutiara Timur

ISL : PT Indo Semesta Luhur

MEP : PT Mutiara Express Perdana

MKS : PT Mutiara Kencana Sejahtera

8

SEP : PT Satria Express Perdana

SIP : PT Semesta Indoprima

TSS : PT Tulus Sinar Selatan

WMK : PT Wahyu Mustika Kinasih

EMK : PT Ekspres Mulia Kencana

ESU : PT Ekspres Sabana Utama

EKJJ : PT Express Kencanakelola Jayajasa

ERU : PT Express Rinjani Utama

NT : PT Nirbaya Transarana


Business

Segments

Re

gu

lar

Ta

xi

Pre

miu

m T

ax

i V

AT

B

More than 10,800 fleet as of June 2014

Operates principally in Greater Jakarta, Surabaya, Semarang

and Medan

In preparation for expansion to other cities

108 licensed premium taxis as of December 2013 through

associated company

Taxi service provided under the Tiara Express line

Operate in Greater Jakarta area

Comprises primarily of limousine services in Bandung, Bali

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

Overview

9

Snapshot of Express’ Business Operations…


Bandung

Jadetabek

Medan

Semarang

Bali Lombok

Surabaya All business line

Regular Taxi

VATB

Key Highlights

New city for Regular Taxi operational expansion in

2014

Padang

Rapidly growing population in key

cities

Increasing business travels due

to strong economic growth

Increased intra-city transportation

as other key cities grow

Expected strong growth in tourist

areas like Bali and Lombok etc

10

… and its geographical locations

Strategically located business operations with strong growth potential


Presentation2



Care & Commitment

Persistence

2. Industry Overview

11


Huge untapped market potential

0.24

3.12

5.20

Indonesia Malaysia Singapore

Large untapped potential in Indonesia

Demand for ground transportation has continued to

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

at a CAGR of 18.2% which is higher than historical

rates

Indonesia still has large untapped potential in the

ground transportation sector vis-à-vis other Southeast

Asian countries

Taxi per 1,000 people in SEA as of year-end 20111

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

213 241 259 292 338 393

456 538

637

766

2007 2008 2009 2010 2011 2012E2013E2014E2015E2016E

50 52 52 57 59 71

81 94

109

128

2007 2008 2009 2010 2011 2012E2013E2014E2015E2016E

Demand (taxi ridership in mm)

Supply (taxi fleet size in ‘000s)


Favorable structural dynamics

New policy on minimum down payments for

car ownership limits the growth of private

vehicles

Increasing fuel prices discourage people to buy

private vehicles

Grant tax facility to claim back luxury tax

incurred for taxi companies

Increase parking tariff to limit the usage of

private vehicles

Lack of reliable rapid mass transportation

Trouble from traffic congestions deters

commuters to use own vehicles

Government

stimulate

growth

Regulatory

environment

Lack of

public

transport

systems


Overview of Indonesia taxi industry

Standard Saloon2

93.8%

Breakdown by vehicle type and geography

Key players overview

% of 2011 market size

Greater Jakarta

65.7%

Bali

5.6%

Others

28.7%

Luxury Car3

6.2%

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

By vehicle type By geography

Fleet (‘000s)4 Business model

Commission based

Partnership scheme

15.7

8.0

1,982 2,346 2,635 3,232 4,114 5,066

6,183 7,639

9,405

11,767

2007 2008 2009 2010 2011 2012E2013E2014E2015E2016E

Market size¹ (in Rp.bn)

Competitive landscape

0% 10% 20% 30% 40%

% of 2011 fleet – Indonesia taxi market

Approx. 45% of

market share

controlled by

top 4 players

0.22 0.22 0.22 0.24 0.24 0.29 0.33 0.38 0.43 0.50

Taxis per 1,000 people

10.2%

Company A

Company B

Company C

Company A


Presentation2



Care & Commitment

Persistence

3. Investment Highlights

15


Investment Highlights

Pioneering

business

model with

partnership

scheme

Enhancement of service

quality with newest

innovation

One of the leading taxi provide

with premium brand image and

excellent services

Business

with strong

and stable

cash flow

stream

Solid support from major

shareholder

Strong platform with proven track

record

16

We offer opportunities for

our investor to take part in

the rapid growth of

Indonesian Economic

Development, especially in

land transportation

services


1

17

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


2

18

Pioneering business model

Provides security deposit and pays a fixed revenue stream to company

Reward eligible driver with the option to purchase the vehicle after 5 – 7 years if certain criteria are met

Purchases and operates the taxi

Provides training and facilities

PARTNERSHIP SCHEME MODEL

Ex

pre

ss D

rive

rs

Express Group Customers / Drivers

Drivers

+ Strong sense of ownership forging

entrepreneurial mindset

+ Opportunity to own a vehicle creates motivation

to perform

+ High motivation by drivers to earn additional

income

+ Opportunity to train and upgrade improving

overall customer service

Customers

+ High quality services and service consistency

+ High vehicle utilization rate with strong

emphasis on driver performance

+ Attracts strong pool of quality of drivers with

high retention rates

+ Well maintained fleet to serve its customers

+ Drivers highly motivated to provide high

quality service - creates strong equity

branding for company

Alignment of key incentives between parties translates into a consistently high quality of service to customers

Pioneering business model aligns and marries the key incentives of all key parties resulting in successful end results


Enhancement of Quality Services with Newest Innovation 3

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

19


4

20

Strong scalable platform with a proven growth track record

Regular Taxi Fleet Size

EBITDA (Rp.mm)

Simple & Scalable platform

Obtain driver licenses Operational and

income generating fleet

Income to Express Converting awarded

taxi licenses to

utilized new fleet

Income to Express

directly correlated to

scale of operations

Simple, scalable business model which directly correlates income from our regular taxi operations to the size of our fleet

3,198 4,922 6,002

8,035 10,029 11,000

2009 2010 2011 2012 2013 H1Y2014

120 159 232

327 442

254

-

100

200

300

400

500

2009 2010 2011 2012 2013 H1Y2014*

38%


5

21

Resilient and stable cash business

Note: 1 As of December 2013 ; 2 From regular taxi drivers

Pioneering cash management system provides us with a sustainable and positive source of working capital and allows for stable and attractive EBITDA margins

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


…coupled with strong sponsor support

Strong domestic network

Strong foothold in various

strategic sectors in Indonesia

(Hotels, property, agriculture,

infrastructure and mining)

Turn around of Bentoel1

Significantly increased

the value of Semen

Gresik1

Established 1st privately owned GSM provider (XL)

Established 1st free-to-air television provider (RCTI)

Developed Express into No. 2 player in Indonesia

Manages a portfolio of

investments in hotels,

property, agriculture,

infrastructure and

mining

Track record

of value

creation

Strong

domestic

access in

Indonesia

Proven

capital

allocation /

execution

expertise

Innovative

&

entrepreneurial

creativity

Strong

linkage to

international &

local

investors

6

Relationships with

multinational companies

across a variety of

industries

Note: 1 Indonesian publicly listed company


Our strategic roadmap going forward

EXPAND VALUE ADD SPECTRUM ACCELERATE MARKET POSITION

INCREASED FOCUS ON

TECHNOLOGY & HUMAN

RESOURCES

Further expand market share in

Greater Jakarta and other regions

through fleet expansion

Fortify market position in tourist

destinations (Bali, Lombok,

Bandung)

Further expand into Premium and

value-added

transportation businesses

Diversify into chartered bus

business to further integrate service

offering

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

1 2

3


Presentation2



Care & Commitment

Persistence

4. Financial Highlight

24


Regular Taxi 85%

VATB 16%

Regular Taxi 88%

VATB 12%

FY2013A

Key Revenue Drivers

Revenue

drivers

Revenue

No. of

License

Fleet

Fixed tariffs

Regular Taxi Segments

Ridership

Volume Tariffs

VATB Segments Revenue Breakdown

Regular taxi will continue to form

bulk of the contribution in the near

term despite planned VATB

expansion initiative

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

secured fixed tariffs which will start

contributing at the moment when taxi

fleet become operational

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

FY2012A

Revenue


Key Financial Summary

Significant increase in our financial profile resulting from the aggressive expansion in fleet size starting from 2010

Revenue (Rp billion)

Gross Profit (Rp billion)

Source: Company audited financial statements

* Unaudied numbers as per June 2014

Aggresive expansion resulted an increasing of Revenue and Gross Profit, showing a promising development of our Company

188

219

338

521

687

409

2009 2010 2011 2012 2013 H1Y2014*

38%

25 56

138 184

220

136

2009 2010 2011 2012 2013 H1Y2014*

72%


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)

Net Income (Rp billion)

Source: Company audited financial statements;

* Unaudied numbers as per June 2014

120 159 232

327 442

254

2009 2010 2011 2012 2013 H1Y2014*

38%

3 35 60

79

133

79

2009 2010 2011 2012 2013 H1Y2014*

161%


Return on Assets Return on Equity

0,9%

5,4% 6,0%

4,5%

6,2%

2009 2010 2011 2012 2013

6,0%

25,0%

29,1%

11,6%

16,6%

2009 2010 2011 2012 2013

Return of Investment

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

28


Key Takeaways

Pioneering partnership model that aligns interest

Young and well-maintained taxi fleet

Strong scalable platform with a proven growth track record

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

29


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

30

Documents

Pitchbook US template - expressgroup.co.id€¦ · Due Diligence Meeting & Public Expose ar aksi m B Express Group Today 3 One of the leading transportation operator in Indonesia