Pine Capital Limited Incorporating Story-i and its subsidiary
Agenda 1. Executive summary 2. Indonesia, Asia s Next Big Opportunity 3. Overview of Story-I 4. Map of Existing and Planned Stores 5. Key management 6. Growth Strategy 7. Online and Social Media strategy 8. Financials 9. Investment summary 10. Appendix
Disclaimer This presentation may contain forward-looking statements that may involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, competition, changes in operating expenses, public policy changes and the continued availability of financing to support future business. You are cautioned not to put undue reliance on these forward-looking statements, which are based on the Management s current view of future events.
1. Executive Summary A market leader as an APPLE Authorized Reseller in Indonesia. Other brands distributed include Apple accessories, and Lenovo. Starting from 1 store in mid 2010 we have since expanded to 14 stores in 10 cities. By the end of 2015 we expect to reach 23 stores in 17 cities in Indonesia with the potential of expanding to Myanmar and Vietnam. Strong revenue growth to $A18.3 m in FY13 from a doubling of store openings
For personal use only Indonesia Asia s Next Big Opportunity
2. Indonesia: Asia s Next Big Opportunity Indonesia is the worlds' 4th most populous country with a population of 253 million which is expected to grow to 265 million by 2020. Its MAC (middle-class and affluent consumers) population is expected to double to 141 million by 2020. Indonesia s demographics are compelling More than 60% of its residents are currently aged 20 to 65 Another 27% of Indonesia s population is below age 15, giving the country a large incoming workforce and a low dependency ratio. Keys to success: Continuing our early mover advantage with a highly focused Clicks and Bricks strategy
3. Overview of Story-i Representing 3 global brands - Apple, Samsung, Lenovo that cater to the lifestyle of the MAC population Story-i to target the entire range of Apple products, Sync/IConnect to target life style products of global brand ( Apple, Lenovo, Samsung) and accessories GeekZone provides service and software including both warranty and upgrade offerings in addition to the Story I accessory range
4. Map of Existing and Planned Stores Medan Pekanbaru Jakarta Tangerang Pontianak Balikpapan Banjarmasin Banjarbaru Cibinong Solo Semarang Samarinda Mataram Manado Makassar Kupang Jayapura City with other apple reseller Our Existing Location Our planned location
Store Pipeline 30 24 18 12 6 0 Story-i Store expansion since 2010 23 14 10 7 1 5 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY15 Store Future Development 1. Malang Town Square - East Java (under negotiation) 2. One Bel Park Fatmawati - Jakarta (under negotiation) 3. Jimbaran Junction Bali ( under negotiation) 4. Hartono Mall Jogjakarta (under negotiation ) 5. CSB Mall Cirebon (under negotiation) 6. U City Mall Medan (under negotiation) 7. Lombok Epicentrum (under negotiation
Existing Stores Story-i Living World Story-i Semarang Story-i Balikpapan Geekzone Balikpapan Sync Jayapura Lenovo Solo
Selected New Store Location Jimbaran Junction - Bali Star Square - Manado Big Mall - Samarinda CSB Mall - Cirebon
5. Key Management Yulius Halim - CEO Yulius has more than 26 years in the IT industry with working experience in channel management for consumer, small medium business and distribution of IT products ranging from hardware, accessories, software and networking equipment. He has held senior management positions in the industry most recently as Managing Director of P.T. Ingram Micro Indonesia, as Country Manager for Dell business in Indonesia and as Director, SMSP ( Small & Medium Market, Solution and Partner ) for Microsoft Indonesia. Yulius holds an Engineering degree in Electrical Engineering from the National Institute of Science and Technology, Jakarta. Hai En (Michael Chan) (Executive Director) Mr Chan is the founder of Story-I. Starting with one store in mid-2010 he has built up the Company to its current network of 12 stores in over 10 cities in Indonesia. His primary responsibility is working with the management team to expand the store network to over 23 stores by the end of 2015 in Indonesia as well as in Vietnam and Myanmar. He has over 15 years of business experience and has held various management positions in companies within the telecommunications and IT industry in Malaysia and Indonesia. Djohan Widodo ( Chairman) Mr Widodo is currently the Chief Executive Officer of the Senopati Group whose activities include logistics, warehousing and distribution of automotive parts for Mitsubishi vehicles in Indonesia. Mr Widodo has over 15 years of working experience with the group. Mr Widodo graduated from the University of Southern California with a Master of Science in Industrial Engineering. Michael Pixley ( Non-Executive Director) Mr Pixley has worked as a merchant banker specializing in strategic corporate development, joint ventures and acquisitions. He has over 20 years experience in the Asian business sector and has extensive network and relationships with key personnel in government, corporate and private sectors in the Asia pacific region. Mr Pixley was part of a management team of a prominent Asian group which over a period of 10 years oversaw the development of industrial properties throughout China, developments in Australia and the expansion of industrial manufacturing plants in Asia. He has been a director of both listed and unlisted companies in Australia and the United States. He is currently a director of Pan Asia Corporation Limited (ASX:PCZ), and Oklo Resources Limited (ASX:OKU)
6. Growth Strategy New Stores 11 more to be opened by 2015 in high traffic areas targeting the identified and rapidly growing MAC demographic. Increased Penetration Apple products with new launches have high growth profiles. In existing locations,story-i will drive increased traffic to locations with promotions linked to Apple/Lenovo/Samsung using their innovative online community and reach. AAR Lifestyle Accesories Corporate Opportunities Leverage the strength of Apple brand. Significant growth opportunities for Apple brand Significant growth opportunities in accessories and lifestyle products, including headphones(beats),jawbone sound fashion accessories addons down to fashion accessories such such as satchels, bags, and cases/covers. Significant M&A opportunities to increase the early mover advantage and Story-I I growth in Indonesia and the region
6. Growth Strategy In Stores : The only APPLE Authorized Reseller that keeps on growing the outlets aggressively. Equip our selves with services : in warranty and out warranty GeekZone Top of mind for buying Apple products in several cities Daily, and Weekly promo for Accessories Passionate and knowledgeable staff High level of loyalty and trust from Apple and customers Activities (Games, Training), Promos, Memberships, Social Medias, Networking with Other Tenants, Tapping Malls Traffic, Creating Traffic (Flier)
6. Growth Strategy Out Stores : Existing activities: Actively join events in the strategic areas of the malls Networking with inside tenants and outlets outside of the malls Planned Activities: Full rollout of Online Lifestyle Products Shop Mobile Kiosk and Service
7. Online and Social Media Strategy Online Online shop of lifestyle products to penetrate 71 Million Internet users Daily Interesting Promo Will Start on Dec 1, 2014 Social Media Accounts in Facebook and Twitter to broadcast daily, weekly promo and useful information to selectively target active Facebook and Twitter users Weekly Quiz to add like and followers Prizes for certain activities like : Selfie contest
8. Financials ( In AUD ) FY 31 Dec FY12 Audited FY13 Audited Revenues 4,217,003 18,318,136 Cost Of sales (3,221,468) (15,121,695) Gross Profit 995,535 3,196,441 Operating Expenses (813,351) (1,774,426) PROFIT/(LOSS) BEFORE TAX 182,184 1,422,015 Tax Benefits (Expenses) (45,562) (360,623) NET PROFIT/(LOSS) 136,622 1,061,392
9. Investment Summary Strong Indonesia Demographic Large and growing population projected to grow from 253 million to 265 million by 2020 with middle income segment growing from 74 million to 141 million by 2020, GDP Growth Above 6% p.a. over the last 4 years, Well Known Global Brands Apple, Samsung and Lenovo Corporate Growth : Expanding retail presence Projected 23 stores in 20 major cities in Indonesia by 2015 Regional opportunities We are finalising plans to grow in Myanmar and Vietnam Acquisition Opportunities In negotiation with several parties which could add 16 stores and 4 service centres to our network.
Appendix
Indonesia Population Demographics
Indonesia Population and MAC