Multi Indocitra, Tbk - PT. PEFINDO

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GROWTH VALUE MAP “Disclaimer statement in the last page is an integral part of this report” www.pefindo.com Multi Indocitra, Tbk Growth-Value Map provides overview of market expectations for the companies listed on IDX. Current Performance (“CP”) metric, running along the horizontal axis, is a portion of current stock market value that can be linked to the perpetuity of current company’s performance in profitability. Growth Expectations (“GE”) metric, plotted on the vertical axis, is the difference between current stock market value and the value of current performance. Both metrics are normalized by the company’s book value. Growth-Value Map divides companies into four clusters, they are: Excellent Value Managers (“Q-1”) Market expects companies in Q-1 to surpass their benchmark in profitability and growth. Expectation Builders (“Q-2”) Market has relatively low expectations of profitability from companies in Q- 2 in the short term, but has growth expectations exceed the benchmark. Traditionalists (“Q-3”) Market has low growth expectations of companies in the Q-3, although they showed a good profitability in the short term. Asset-loaded Value Managers (“Q-4”) Market has low expectations in terms of profitability and growth for companies in Q-4. Growth Expectations 6 5 4 3 2 1 0 -1 -2 -3 -4 Q-2 Q-4 Figure 1: Growth-Value Map of MICE 0 1 2 3 4 Current Performance (CP) October 18 th 2012 Page 4 of 11 MICE Source: Bloomberg, Pefindo Equity & Index Valuation Division Based on financial statement and market value, MICE is lying in Asset Loaded Manager cluster. Market has relatively low expectation to MICE in term of profitability and growth. However, we believe MICE’s strategic plan to boost Pigeon brand and HORI brand by opening new plenty outlets across Indonesia will lift its revenue up. Also, it may still need a better investor relation effort to make investors realize the company profitability potentials. MICE has the opportunity to move to Excellent Value Managers’ cluster by way of strengthening their internal growth capabilities and doing actions to drive market perceptions of their economic success. Q-1 Q-3
BUSINESS INFORMATION “Disclaimer statement in the last page is an integral part of this report” www.pefindo.com Multi Indocitra, Tbk The Only Company in this Industry Listed in IDX Since 2005, MICE has been listed in Indonesia Stock Exchange (IDX). This action reflects MICE’s seriousness in developing its business and introducing its identity to public. Among many local and foreign players in this industry, MICE is the only listed company that engage in baby care products. Through its long experience and underpinned by Pigeon brand, currently MICE takes dominant position in baby care industry with around 65% market share. Improving Economic Condition Benefits MICE’s Business Indonesia’s economic growth which attained 6.4% YoY in 1H12 has attracted many foreign companies to invest in domestic. We estimate that the growth of Indonesian economy may reach 6.2% YoY in 2012. Along with manageable inflation of 4.53% YoY in 1H12, low benchmark interest rate (BI Rate) of 5.75%, and improving GDP per capita which may break USD 4,000 level in 2012, we believe that MICE’s business, as baby care producer, will remain prospective. Supported by other factors namely huge number of young family generation, stable growth of birthrate, strong Pigeon brand equity as well as strong demand of CFL, we eye that MICE could enjoy satisfactory revenue growth in the years ahead. Table 2: Indonesia’s Economic Indicators, 2008 – 1H12 Indicators Unit 2008 2009 2010 2011 1H12 GDP Growth % YoY 6.1 4.5 6.1 6.5 6.4 Inflation Rate % YoY 11.06 2.78 6.98 3.79 4.53 Mid-Exchange Rate Rp/USD 9,136 9,680 10,398 8,779 9,480 BI Rate % 9.25 6.50 6.50 6.00 5.75 GDP per Capita USD 2,245 2,350 3,010 3,543 Third Party Funds Rp tn 1,682 1,913 2,304 2,736 2,867 Foreign Exchange Reserves USD bn 52 66 96 110 107 Source: Bank Indonesia, Central Bureau of Statistic, Pefindo Equity & Index Valuation Division Providing High-Quality Products One important factor that makes MICE can retain the biggest market share in its industry is due to the quality of its products. The manufacturing of Pigeon products, which is carried out by the subsidiary and affiliated company have been carefully checked for its quality to make sure that the quality standard which is stipulated by Pigeon Corporation of Japan are followed. PT. Multielok Cosmetics and PT. Pigeon Indonesia have obtained some certifications, namely: PT. Multielok Cosmetics: Certification AS/NZS ISO 9001:2000 from SAI Global Limited Australia, Certification for Good Manufacturing Process (GMP) from the Indonesian Medicines and Food Supervisory Body PT. Pigeon Indonesia: Certification AS/NZS ISO 9001:2000 from SAI Global Limited Australia. Wide Distribution Coverage to Boost Sales We believe MICE’s effort to promote their products across Indonesia will be running smoothly. Besides doing partnership with the hospitals in remote area to introduce Pigeon, MICE also distribute the products in wide coverage. Currently, MICE’s distribution channel is supported by 15,500 outlets in modern market and 21,000 outlets in general retail trade. Such condition positively affects MICE’s revenue as it grew by 15% CAGR during 2008 – 2011 periods. This year, MICE plans to spend Rp 70 billion for promotion, add new machines as well as distribution area. And we expect such investment could lead MICE’s revenue to climb by 14% YoY to reach Rp 532 billion in 2012. October 18 th , 2012 Page 5 of 11
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