Matahari Department Store

Q4 2014/ FY 2014 Results Update

Earnings call: February 17, 2015

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Indonesia’s Most Preferred Department Store
 Key Highlights Q4 2014 and FY 2014

 Financial Update

 Summary

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 Key Highlights Q4 2014 / FY 2014

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Indonesia’s Most Preferred Department Store
 Key Highlights Q4 2014

• Total gross sales increased by 10.9% over LY to Rp3,442 bn

• Delivered a 8.7% comp store sales growth

• Merchandise gross margin increased to 35.2% of gross sales, up 50 bps over LY

• EBITDA increased by 13.1% over LY to Rp557 bn, at 16.2% of gross sales (30 bps
over LY)

• Comparable and reported net income increased by 43.1% from Rp251 bn in Q4

2013, compared to Rp359 bn in Q4 2014

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 FY 2014 Recap

• Gross sales increased by 13.2% over LY to Rp14,421 bn

• Delivered a FY comp sales growth of 10.7%

• Merchandise gross margin increased to 34.9% of gross sales, up 80 bps over

LY

• EBITDA increased by 15.0% to Rp2,411 bn, at 16.7% of gross sales (20 bps
over LY)

• Comparable net income* increased by 31.0% from Rp1,150 bn in FY 2013 to

Rp1,507 bn in FY 2014

• Reported net income increased by 23.4% over LY to Rp1,419 bn

*Comparable Net Income: 2014 net income income excludes the one-off amortization of loan fees and the charge
in Q1 (See Q2 earnings slides for detail)

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 Financial Snapshot FY2014

Gross Sales EBITDA Reported Net Income

IDR Bn IDR Bn IDR Bn

1,600 1,419
16,000 1,400
14,421 1,150
3,001 1,200
14,000 1,000
12,735
2,411 800
2,501 9.8%
12,000 600
9.0%
2,096 400
10,000 2,001 200
-
FY2013 FY2014
8,000 12.1%
1,501 Comparable Net Income
6,000 10.7% 16.7% 2,000
1,001 16.5% 1,507
4,000 1,500
1,150
501
2,000 1,000
10.5%
- 1 500 9.0%
FY2013 FY2014 FY2013 FY2014

SSSG EBITDA Margin -

FY2013 FY2014
Net Income Margin

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 MDS’s exclusive brands continue to deliver strong performance

DP accounted for 34.0% of gross sales in FY14, as compared to 32% in FY 2013

% of Gross Sales

DP, 32.6% DP, 33.6%

CV, 67.4% CV, 66.4%

Q4’ 13 Q4 ‘14

DP, 32.0% DP, 34.0%

CV, 68.0%
CV, 66.0%

FY13 FY14

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Retail store network as of December 2014

MDS Store Overview

No. of Stores
Kalimantan, Bali and East
As of 31 Dec 2013 125
Sumatra Indonesia
22 stores (11 cities) 30 stores (16 cities) Added up to December 2014 8
(2 new stores) (4 new stores)
Closed up to December 2014 2

Total 131

Greater Jakarta
36 stores (11 cities)
(2 new stores)

West Java
10 stores (7 cities)
Central Java
17 stores (8 cities) East Java
16 stores (9 cities)

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Opened 8 new stores in 2014; Forecasting 12-14 new stores in 2015

o Opened 6 new stores in 4Q14 (1 in Oct, 1 in Nov and 4 in Dec), to give a total of 8
new store openings in 2014

o In 2015, we are forecasting 12-14 new store openings

As at 31 Dec 2013 As at 31 Dec 2014 2015F Future Pipeline 2016 onwards

No Geographic area
# of stores % mix # of stores % mix # of stores # of stores % mix

1 Jabodetabek (Greater Jakarta) 35 28.0% 36 27.5% 1 15 23.1%

2 Java (Exc Greater Jakarta) 44 35.2% 43 32.8% 4-5 20 30.8%

3 Outside Java 46 36.8% 52 39.7% 7-8 30 46.2%

Total 125 100.0% 131 100.0% 12-14 65 100.0%

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 Financial Update

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Indonesia’s Most Preferred Department Store
 Strong sales growth continues

IDR Bn
Q4 FY

16,000
14,421
14,000 12,735
12,735
12,000
5,500
10,867
5,000 10,000
10,000 4,500
4,000 8,000
3,442
3,500 3,102
3,000 6,000
2,500
5,000 2,000 4,000
1,500
1,000 2,000
500
- - -
Q4'13 Q4'14 FY'13 FY'14
FY'12 FY'13

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Driven by improved double-digit same-store sales growth

SSSG %
Q4 FY

12.1% 13.3%
Average 11.6%
11.1% 12.1%

10.7%

8.7%

FY12 FY13 Q4'13 Q4'14 FY13 FY14

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 Merchandise margins continue to strengthen

Gross profit and margins

IDR Bn
Q4 6,001 FY

5,029
5,001
5,000
4,348
4,500 4,348
4,001
4,000 3,685
3,500
3,001
3,000
1,501
2,500 1,210
1,075
2,000
2,001
1,001
1,500 35.2% 34.9%

1,000
34.1%
501
34.7% 1,001 34.1%
33.9%
500

- 1 1
FY12 FY13 Q4'13 Q4'14 FY13 FY14
Gross profit as a % of Gross Sales

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 Expenses came in lower than planned, with stores continuing to offset
labor cost increases with operational efficiencies

Opex(1) as a % of Gross Sales

Comp store

14.8% 14.5% 14.0% 14.0%

17.2% 17.7%

Q4'13 Q4'14 FY13 FY14

Total Company
18.8% 19.0%

17.7% 18.2%

FY12 FY13
Q4'13 Q4'14 FY13 FY14

Note
1. Opex calculated as Adjusted Gross Profit less Adjusted EBITDA

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 EBITDA grew by 13.1% in Q4 2014, YTD up 15.0%

EBITDA and Margins

IDR Bn

Q4 FY
3,001

2,501 2,411

2,096
2,096
2,001
1,819

1,501
600 557
493
16.7% 500 16.7%
16.5% 16.5%

400 1,001
16.2%
300
15.9%
200 501
100
- 1
FY12 FY13 Q4'13 Q4'14 FY13 FY14
EBITDA as a % of Gross Sales
Notes
EBITDA adjusted for severance pay

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 FY2014 comparable net income increased by 31.0% over 2013

Net Income and Margins Q4 FY

IDR Bn Reported Net Income 1,600 1,419
1,400
1,150
400 1,200
359
1,000
300 251
800
1,150 10.4% 9.8%
200 600 9.0%
8.1%
400
100
200
- -
771 Q4 '13 Q4 '14 FY13 FY14
9.0%
Comparable Net Income
1,600 1,507
1,400
7.1% 1,150
1,200
400 359
1,000
300 251 800 10.5%
10.4%
200 600
8.1% 9.0%
400
100
FY12 FY13 200
- -
Q4 '13 Q4 '14 FY13 FY14
Net Income as a % of Gross Sales

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 Debt continues to be paid down at an accelerated rate

Total Gross Debt (in Rp Billion) Commentary

 In 4Q14, we made additional payments

1,669 1,650 of Rp580bn
1,569
 As of end of 31 December 2014, our
1,280
total gross debt balance is Rp700bn

 As at year end 2014 the Company was

700 in a net cash position

2013 1Q14 1H14 9M14 FY14

Notes
1. Effective interest rate is computed by dividing interest expense (excluding amortization of upfront fees) during the relevant period by beginning gross debt of the relevant period
2. Total debt comprises of the bank loan

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 Strong comp performance across geographic regions

Sales Growth and SSSG by region

Stores as at Store Mix Sales Total Sales SSSG% SSSG%

Geographic Area
Dec 2014 % to Total (IDR Bn) % growth YTD Q4’ 2014 FY 2014

Greater Jakarta 36 27.5% 4,188 45.6% 5.3% 7.4%

Java exclude Greater

43 32.8% 4,762 49.7% 14.2% 14.8%
Jakarta

Outside Java 52 39.7% 5,471 53.0% 7.0% 9.7%

Total 131 100.0% 14,421 49.7% 8.7% 10.7%

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 Financial Summary

Key Profit & Loss Items

IDR Bn
4Q13 3Q14 4Q14 FY2013 FY2014
Gross Sales 3,102.0 5,008.1 3,441.5 12,735.0 14,421.4

SSSG 13.3% 9.7% 8.7% 12.1% 10.7%

Growth 18.1% 12.0% 10.9% 17.2% 13.2%

Net Revenue 1,646.0 2,710.5 1,886.1 6,754.3 7,925.5

Growth 20.5% 14.5% 14.6% 20.2% 17.3%

Gross Profit 1,074.9 1,722.7 1,210.4 4,347.8 5,028.6

Margin 34.7% 34.4% 35.2% 34.1% 34.9%

EBITDAR 702.3 1,255.9 797.4 2,912.4 3,352.7

Margin 22.6% 25.1% 23.2% 22.9% 23.2%

EBITDA 492.7 1,000.7 557.3 2,095.8 2,411.1

Margin 15.9% 20.0% 16.2% 16.5% 16.7%

Income before tax 343.5 880.1 460.4 1,523.6 1,850.5

Margin 11.1% 17.6% 13.4% 12.0% 12.8%

Reported net Income 250.7 698.7 358.7 1,150.2 1,419.1
Margin 8.1% 14.0% 10.4% 9.0% 9.8%
growth 77.8% 10.1% 43.1% 49.2% 23.4%

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 Summary

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Indonesia’s Most Preferred Department Store
 Summary

 Sales and earnings results in 2014 were in line with expectations, and
reflect a continuing strength in consumer demand in our middle income
segment

 Improvements were achieved in both Direct Purchase and Consignment

margins during 2014, and are expected to continue into 2015

 Expense pressures were offset by merchandise margin improvements

enabling the Company to improve EBITDA margins to 16.7%

 Accelerated debt payments continued into Q4, with the Company ending
the year in a net cash position

 Robust store pipeline for 2015 and beyond indicates an opportunity for
acceleration in store openings going forwards

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 End of Presentation

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Indonesia’s Most Preferred Department Store