Oro Jackson PT Mitra Adiperkasa Tbk

Ticker: MAPI.IJ Recommendation : STRONG BUY

Indonesian Stock Exchange (IDX) Price (November 3, 2020) : IDR 640
Industry: Trade ,Service, and Investment Target Price : IDR 1.113
Sector: Retail Trade Potential Upside : 74%

Faza Verdana M. Ilham Gunawan Grace N. Christiadhi

Investment Summary

Market Overview We issue a STRONG BUY recommendation on MAPI.IJ with a target price of IDR 1.113
52 Week Price Range (IDR/Share) IDR 414-1.105
per share using Discounted Cash Flow valuation with the Free Cash Flow to the Firm
Average Daily Volume 20.961.785
Adjusted Beta 1,34 approach. Presenting 74% potential upside from MAPI's closing price on 3 November
Share Outstanding (in million) 16.600 2020 at the price of IDR 640 / share. We see that in the foreseeable future, MAPI will
Market Capitalization (in billion IDR) 10.560
generate wealthy profits with their business expansion strategy marked by robust
Book Value per Share (IDR) 311
PT Satya Mulia growth of BVPS at 4.9% CAGR of 2021F-2025F. The base reasons we recommend buy
Major Shareholder
Gema Gemilang on MAPI are: a) Strong business fundamental performance, b) Robust growth strategy,
and c) Sustainable profitability.
MAPI VS JKSE 1 YEAR

1.200 7.000 Resilient Sales Maneuver and Strong Brand Equity to Potentially Ripping the
1.000 6.000
Indonesia Lifestyle Market
800 5.000
MAPI's business outlook remains promising in the long term. Compared to its peers,
600 4.000

400 3.000
there is the possibility that its revenues will rebound faster as MAPI's target market
200 2.000
comprises middle-upper income class customers who are more financially resilient
12/2019 03/2020 06/2020 09/2020 during an economic downturn due to COVID-19. Digital Strategy maneuver that MAPI
MAPI JKSE
prove from the great managerial team in facing the pandemic by book growth at CAGR
Source: Yahoo Finance
98.98% and contribute at significant 28% revenue for Q2 2020. Beside that Brand
FORECASTED ROE VS CAPEX Equity for MAPI Brand Principals is at a robust and growing demand in the future as
1.000 20% the consumer spending of Indonesia people projected to grow quadruple in 2030.
800 10%

600 0% Measured Robust Expansion Strategy

400 -10% In the future, the growth of capital expenditures will be reflected in the company's
200 -20% financial performance. MAPI’s capex will experienced a robust growth (18,5% CAGR
0 -30% 2020F – 2021F), in line with the growth of its ROE. In our long-term view is that MAPI
2020F 2021F 2022F 2023F 2024F 2025F
will continue to pursue a healthy organic growth with the measured allocated capex
CAPEX ROE
Sources: Company Data, Team Estimates
to expanding through offline and online channel in which turn to drive a strong 2025F
ROE of 17,3%. This is also followed by strong cash flow generation which benefited
FORECASTED CONSUMER SPENDING
from MAPI's business model which deals directly with end-to-end markets.
2011-2030 CAGR
10,5% Discount Cost of Capital and Solid FCFF Growth
7,5%

6,2%
Since there is an economic crisis in worldwide, include in Indonesia, most of central
6,0% banks, include Bank Indonesia, decrease their interest rates for several basis points.
5,3%
This policy lead into a discount in national risk-free rate and other financing
5,2%

5,0% instrument, not exception to bank loan. Moreover, with the domestic consumption
4,7% forecast specific in Apparel and Food and Beverages goods in the following years 2011
4,6%

4,5%
– 2030F with CAGR 5% and 5,2% respectively, will lead into prosperous MAPI revenue.
0% 5% 10% 15% Thus, we forecast the MAPI equity value will grow at 28,48% CAGR for 2020F – 2025F
Source: Euromonitor and perpetual growth.
 Business Description
MAPI OPERATIONAL SEGMENTS
Incorporated in 1995, MAP is the leading lifestyle retailer in Indonesia with over 2.615
retail stores and a diversified portfolio that includes over 2.600 retail stores, Portfolio
10,10% of over 150 brands, Over 25.000 employees, Presence in 81 Indonesian Cities, Over
110 retail concepts. Listed on the Indonesia Stock Exchange on 10 November 2004,
13,95%
MAP also has dozens of subsidiaries engaged in various fields, such as retail,
61,42%
department stores, cafes and restaurants, bookstores, manufacturing, and others.
14,54%
In Indonesia, MAPI not only runs its business, it also expands its markets in neighboring
countries: Singapore, Malaysia, Australia, Thailand, etc. In 2016, the major step
expansion of foreign market was signed by the launch of Zara's first store in the
Vietnam. MAPI's sales channel that is rampant in Indonesia and even its expansion in
Retail sales Department Stores
Cafe and Restaurant Others ASEAN countries makes MAPI the market leader of the F&B and Fast Fashion retail
Source: Company Data business, which strengthens its core business as an extension of brand equity for
middle-up consumer brands.

REVENUE BY SEGMENT MAPI also continuously Expanding the market with over 2.600 retail stores across 71
110%
major cities, it dominates the Indonesian market of lifestyle business, projected by
holistic end-to-end merchant value chain of MAPI (Appendix A-1).

70% Business Model

For MAPI business process were generated by the operational segments of MAPI
consist of:
30%

• Retail Sales: Retail activity include Trading of clothes and accessories, Trading
of sports equipment and accessories, Trading of toys and accessories on
-10% 2016 2017 2018 2019 2020 Q1
Specialty Store (active for sports, leisure & kids, and fashion including
Retail sales Department Stores cosmetics & beauty) sales, earned from 110 retail concept stores sales across
Cafe and Restaurant Others
Indonesia that cover on Fashion & Lifestyle, Sports, Kids industry. This
Source: Company Data segment was the largest revenue contributor (70,3%).
• Café and Restaurants: as a food and beverage retail concepts, Café and
SALES SEGMENT CONTRIBUTION restaurants contribute to second largest revenue for MAPI, at 14,4%
• Department Store: Contribution from Department Stores was Rp2,1 trillion
77,90%
(9,5%), the third largest revenue contributor for MAPI, namely: Sogo, Seibu,
20,14% Galeries Lafayette, and The FoodHall.
• Others: Other Business segment covers Property, Investment, Book store,
1,41% Handicraft trading, Manufacturing, Cellular phones, tablets, computers and
accessories at 5,8% revenue contributor for MAPI. Although, this segment was
0,52%
contributed to least, this segment is predicted to have a new source of
0,03% support, which is Digimap, one of the authorized sellers for Apple products in
Indonesia, that were high in demand during the pandemic.
0% 20% 40% 60% 80% 100%

Source: Company Data

For contribution per sales method of each business segment were separated into 4
different sales method. Consecutively, Retail Sales still dominated the revenue by
MAPI DIGITAL SALES GROWTH
77,9%, Consignment Sales by 20,1%, Wholesale by 1,4%, Rent and Service Revenues
2020 by 0,5%, Others by 0,03%.
700 582
Outstanding MAPI Omnichannel Strategy as Survival Strategy Amidst COVID-19
500
Outbreak
300 As majority of customers continue to shift to online shopping during pandemic, MAP’s
147
e-commerce business has shown tremendous growth. Major giant step of MAPI to
100
launch 5 new e-commerce platforms and partnership with third party marketplaces
-100 2020Q1 2020Q2 during the pandemic has led to significant online sales and customer acquisition
Source: Company Data resulting in e-Commerce sales growth of almost 400% during the first half, while in
2Q20 alone it grew over 600% YoY. With 28% of MAPI revenue were generated from
 online store activity in Q2 2020, Mapemall, Online sales coming from digital platform
MAPI F&B RETAIL NO. OF STORES
like MAPEMALL, PlanetSports.asia, Zara.id, Sephora.id, Kidzstation.asia and
750 marketplaces might also help to offset the sales decline in MAPI’s traditional stores.
541 566
600
465
450 384 Starbucks as Coffee Retail Champions as the Largest Contributor for MAPI Food &
321
Beverage Business
300
Through its subsidiary MAP B, MAPI has a very big opportunity in welcoming the
150
booming market demand in Indonesia in 2030 (Appendix A-2). Through a brand
0
2016 2017 2018 2019 2020 principal that has a strong brand equity, this opportunity can be captured by
Source: Company Data leveraging its market leading F&B business, where MAP B's biggest contribution comes
from Starbucks outlets, with total outlets increasing every year. MAP B's speed in
MAPI FASHION RETAIL SAME-STORE-SALES
GROWTH
adapting is also reflected in the increasing proportion of food delivery sales projected
in high contribution of Dominos Pizza, one of MAPI Brand principal that has 5% of total
15% 9%
11% market share on Indonesia total market of food delivery service (Appendix A-3).
8%
6%

5%
Dominant Player in Fashion Retails
-5%
2016 2017 2018 2019 2020 MAPI has the Largest retail network of 991 stores across 70 cities. Comprehensive
coverage through a multi-tier, multi-format platform with same-sale store growth
-15%
-15%
which continues to increase every year. Inclusive of store-in-store Strong
Sources: Company Data, Team Estimates
understanding of the Indonesian consumer through 20+ years of experience Best-in-
class operational expertise and dominant knowhow in Indonesian sports retail
OWNERSHIP STRUCTURE marketing. MAPI has a fashion retail line that is also a market leader, where one of the
key drivers demands that becomes a source of income is the MAPI sportswear industry
that have 73% market share of Fashion Retail among Indonesia competitors. With
40,00%
opportunity of Indonesia sportswear market that is under-penetrate yet the selling
51% spaces is still can be upwarded (Appendix A-4), MAPI has the potential of quadrupled
Indonesia fashion retail market.

2% Ownership Structure
3%
3,5%
Ownership structure of MAPI is owned by PT. Satya Mulia Gema Gemilang for 51% and
Pt Satya Mulia Gemilang Schroder Investment public for 40%. Besides, MAPI share ownership is also held by foreign investors, with a
Norges Bank E Ohman Fonder
quite high proportion of 3,5% held by schroder investment from United States.
Public

Source: Company Data

PURCHASING MANAGER INDEX Macroeconomic Analysis & Industry Analysis

70
60 Macroeconomic Outlook 2020 – 2025: Bright Future
50
40
Temporary Plummeted Aggregate Demand
30 The decreased of demand aggregate worldwide, that is reflected by shortfall of most
20
consumer confidence index (e.g. US, China, and Indonesia), forced industries to stop
10
0
their production or economic activities, which led to a significant decreased of
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
commodities price (e.g. Oil, Gas, Nickel). The phenomenon impacted significantly to
China US Indonesia macroeconomy of Indonesia, specifically to its current account (CA). The CA of
Source: IMF Indonesia was experiencing a surplus for several months in pand emics and turned out
into the national inflation rate fell off to 1.32% in August 2020 from 2.68% in the
COMMODITY PRICE 1 YEAR
January 2020.
80 20.000

60
15.000 Rebound Commodity Price
40
Despite of the fact that, the aggregate demand for commodities was recover in the
20 10.000
end of November 2020 to date. The happen is reflected by the rebound of
0
5.000 commodities price recently and are projected to be prolonged for the next year due to
-20
economy recovery worldwide, include in Indonesia. Thus, it will affect the
-40 0
12/2019 03/2020 06/2020 09/2020 macroeconomy of Indonesia.
Natural Gas Crude Oil Nickel
Sources: Yahoo Finance, investing.com
 INDONESIA CURRENT ACCOUNT Current Account and Trade Balance Get Better
BALANCE FORECASTED Since the domestic aggregate demand of import of the commodity also increase in
parallel with the commodities’ price are rebound, the current account of Indonesia is
0 forecasted by International Monetary Fund (IMF) will be deficit 2,4% in 2021 from
-0,5 forecasted deficit 1,3% in 2020. However, the current account deficit will be narrowed
-1,3
-1
-1,6
down for the FY 2022 to 2025, which will be at level deficit 1,8% in 2025, forecasted
-1,8
-1,5
-2 -2
-1,9 by IMF. This event is aligned with the projection of Inflation rate of Indonesia by IMF.
-2,3
-2 The IMF projected that the Indonesia’s inflation rate will goes up and stable at level
-1,8
-2,5 3% until 2025. In response the projection, the central bank of Indonesia (Bank
-2,4
-3
-3,1 -2,7 Indonesia / BI) is expected will retain the BI7 DRRR (BI 7-day Reverse Repo Rate) at
-2,9
-3,5 3,75% in supporting the national economy recovery.
Source: IMF

Revive Domestic Consumption and Rally Purchasing Power Parity

GDP BASED ON
When there are stable inflation rate and low central bank rate, are expected that the
PURCHASING POWER PARITY
domestic consumption, both household and corporation, will revive. This will
2,8
2,7 positively affect national economy desire thoroughly. Moreover, the IMF also
2,6
projected that Purchasing Power Parity of Indonesia will rally in the following years.
2,5
2,4 These projections are positive catalysator for Indonesia’s economy, not exception to
2,3
2,2
Indonesia retail industry.
2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Source: IMF Key Retail Industry Demand Drivers: Strong Positive Signals
Breeze Amid Pandemics
REAL RETAIL SALES INDEX Since the Covid-19 outbreaks, people in Indonesia are facing an extreme uncertainty
in many aspects of life, no exception for economy issue. Most people were afraid to
0
consume and prefer to hold their cash for anticipation the prolonged pandemics. Thus,
this will negatively affect towards retail sales in Indonesia, which plummeted and still
-28 at negative level since the Covid-19 outbreaks to date. Nevertheless, the government
-30 -40 of Indonesia struggle and succeed to manage the crisis by taking a decisive response
to the covid-19 to minimize and break the virus spread chain, which shown by the
-61 -60 -59
-65
-60 -…
-67 Government Response Stringency Index. Moreover, the first wave of vaccine of Covid-
-74 -74
19 for Indonesia was arrived at Soekarno Hatta International Airport in 6th of December
2020. The vaccine brings more certainty in the future for the country and recognized
-90
Source: Bank Indonesia as a trigger to consume and produce back for household and corporation.

COVID-19 GOVERNMENT
Robust Domestic Consumption Further
STRINGENCY INDEX Furthermore, the government of Indonesia projected that Gross National Income per
90 capita for 2020 to 2024 will be $4.360, $4.730, $5.110, $5.500, and $5.930 in 2024
80
70 respectively. Thus, Indonesia is classified as upper-middle income country by the
60 World Bank. The recognition is aligned with the consumption level of people within
50
40 the country. Moreover, the unemployment rate of Indonesia is projected decrease to
30
20
the 5,3% level in the following years up to 2025 by IMF. Thus, it will strengthen
10 purchasing power of retail consumer in Indonesia that positively affect to retail
0
industry in Indonesia.
24
47
70
93
1

116
139
162
185
208
231
254
277
300
323

Source: OurWorldInData.org

Key Retail Industry Supply Drivers: Prolonged Breath

GROSS NATIONAL INCOME
2020F - 2024F
Beneficial Fiscal Stimulus
The government of Indonesia has been reformulated the posture of APBN of 2020
8.000

5.500
5.930 through the revision of The President Policy (Perpres) 54/2020 to The President Policy
6.000 5.110
4.360
4.730 (Perpres) 72/2020. The urgency of this revision was to accommodate the needs of
4.000 government expenditure to handle the Covid-19 and National Economy Recovery
(PEN) program. One of the government expenditures is the tax reduction for
2.000
2020F 2021F 2022F 2023F 2024F corporations and SMEs which could help the enterprises to be resilient amid this
Source: RPJMN Narasi 2019 coronavirus pandemic, not exception to MAPI and other retail companies. The
 company could save the profit up to 25% of operating profit. Moreover, there is
another response of the government to help and keep safe the enterprises within the
country. Recently, the government just ratificated the Omnibus Law.

Competitive Positioning: Porter Five Forces

WORLD INTERNALTIONAL TOURISM Bargaining Power of Consumer: Sole Luxury Fast-Fashion and Lifestyle Retail Business
ARRIVALS 2020 Market Leader
Jan Feb Mar Apr May Jun Jul Aug Unrivaled exclusive brand partnerships that become the key power to consumer that
0%
-16% MAPI had. Nevertheless, customer In Indonesia still have Jeep Purchaser or Jasa Titip
-20%
-10% choice to shop for brands owned by MAPI in different countries. Jeep purchaser is a
-40%
-65% person or entity that buys the item according to the request of the customer while
-60%
-81% -79% they were travel to some place. This Jeep Purchasing model becomes a very profitable
-97% -91%
-80% -97% business then it started to catch by Indonesian Tax Authority (Ditjen Pajak) to be
-100%
regulated, apart from customer gets the items they want because this service business
-120%
also has the service chat and buy, customer also gets a nominal advantage because
Source: World Trade Organization usually goods purchased via jeep purchaser are cheaper than even online and imposes
0.5% tax on <50 million transaction (Appendix C-1). However, this business model is
currently constrained due to COVID-19, where activities for traveling are declining
worldwide.
SSSG COMPARISON

15% Competitor Rivalry: Comprehensive and Differentiated of Exclusive Brand Segments

10% The rivalry is low in the retail industry. As consequence, existing players may place
5% barriers to the entry of new players into the industry. MAPI is the fashion retail brand
0% that have the largest distribution system and the mechanism for the supply chain with
2016 2017 2018 2019 2020
-5% robust sales growth, shown from same-sales-store growth (SSSG) compared from
-10% another competitors. Also, the key of sustainable competitive position that MAPI had
-15%
are the robust growth of expansion (Appendix C-2) and having a multi-segment on
MAPI LPPF RALS brand equity matrix (Appendix C-3). MAPI also have a diversified line of business
Sources: Company Data, Team Estimates compare of its competitor in Indonesia and ASEAN (Appendix C-4).

Bargaining Power of Supplier: Loyal & Strong Bond Brand Principal

MAPI has maintained a long-lasting relationship with Brands Principals and Landlords,
the data shows that landlord's principal partner that MAPI claims for their outlets
GROSS NET PRICING AND VACANCY
RATE ON JAKARTA PROPERTY LEASE reach an average of 30% of premium malls in big cities in Indonesia, so there’s a high
PAYMENT bargaining position for MAPI as a landlord principal with total of 888.287 m2 outlet
$75 $67 75%
$65
$62 $60 58% area. During pandemic, lease payment for retail were lower, projected in Gross Net
$60 40%
$50 Pricing. But according to Cushman & Wakefield survey on Q1 2020 towards rent price
50%
$45 $40
52% 51% in Jakarta, there are unchanged price expectations in Rp807.700/SQM/Month.
55%
43%
$30 Moreover, the tenants also expected and requested to postpone their lease payment
25%
$15
to the landlords in Jakarta. As a result, there are no significant changes in vacancy rate
in rental space in Indonesia, specifically in Jakarta. This good cooperation between
$- 0%
2015 2016 2017 2018 2019 Q3 2020 retailers towards its supplier (the landlords) gives a good impact to the company's cash
GROSS RENT PRICING VACANCY RATE
flow.
Source: Cushman & Wakefield
Bargaining Power of Substitutes: COVID-19 change the consumer preferences of
spending drastically over the past month. Apparently, consumer spending has shifting
from offline spending activity into more online, from the data shows that demand of
Entertaintement at home has value as a fourth significant change in net intent of
consumer behaviour based on McKinsey survey (Appendix C-5).
 E-COMMERCE MARKET SHARE Threat of New Entrants: Strong Base of Partnership Retail Network
Indonesian Fashion Retail industry has enormous growth prospects of 13,4% (CAGR
Shopee 32%
2020-2025), and the consumer trends of online shopping were at 60% growth during
Tokopedia 26%
pandemic, make the Retail Industry shift a digital strategy to thrive. Therefore,
Bukalapak 16%
collaboration and build digital sales channel requiring companies to be prepared incur
Other 12%
intensive capital costs to increase e-commerce Gross Merchandise Volume and on
Mapemall 1% Indonesia e-commerce market. We believe that MAPI partnerships with several Top 3
Zalora 1% of Indonesia e-commerce will support sustainable growth for MAPI domestic sales
Berry Benka 0,02% given generally high switching costs for clients.
0,00% 10,00% 20,00% 30,00% 40,00%

Source: iPrice

Financial Analysis

TABLE A: KEY FINANCIAL RATIOS

Key Financial Ratios 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F
Profitability Ratio
Gross Profit Margin (%) 46.8% 48.6% 48.2% 47.8% 47.5% 42.6% 42.5% 42.4% 42.6% 42.7% 42.6%
Operating Profit Margin (%) 4.1% 6.3% 6.9% 8.0% 8.9% -4.9% -3.8% -2.7% 4.0% 5.1% 5.9%
EBT Margin (%) 1.2% 2.8% 3.7% 6.2% 7.5% -7.1% -7.1% -5.3% 1.9% 3.5% 4.7%
Net Profit Margin (%) 0.3% 1.5% 2.1% 3.9% 4.3% -7.0% -6.5% -4.9% 1.3% 2.4% 3.3%
Return on Assets (%) 0.4% 2.0% 2.9% 5.8% 6.7% -5.2% -6.0% -5.0% 1.6% 3.2% 4.9%
Return on Equity (%) 1.3% 6.5% 8.3% 13.5% 15.1% -18.4% -22.9% -22.6% 6.8% 12.7% 17.3%

Growth Ratio
Equity Growth (%) 20.8% 7.7% 26.0% 35.0% 13.2% -16.4% -18.7% -18.4% 7.3% 14.5% 20.9%
Liability Growth (%) 5.5% 14.9% -4.0% -8.5% -0.1% 86.6% -10.0% 3.6% 1.2% 1.5% 1.7%
Sales Growth (%) 8.5% 10.3% 15.2% 16.0% 14.0% -37.0% 8.2% 8.2% 19.4% 19.4% 19.4%

Solvency Ratio
Debt to Equity Ratio (x) 2.2 2.3 1.8 1.2 1.1 2.4 2.6 3.3 3.1 2.8 2.3
Current Ratio (x) 1.7 1.6 1.5 1.3 1.4 1.0 1.0 1.0 1.1 1.2 1.4
Cash Ratio (x) 0.2 0.4 0.3 0.3 0.3 0.4 0.2 0.2 0.2 0.2 0.2
Interest Coverage Ratio (x) 1.31 2.11 2.78 2.81 9.09 -1.90 -1.13 -1.02 1.89 3.08 4.73
Net Gearing Ratio (%) 123% 140% 88% 50% 31% 138% 130% 158% 137% 111% 83%

Shareholders Indicator
BVPS 1,792 1,930 2,432 328 372 311 253 206 221 253 306
EPS 22.49 125.59 201.60 44.33 56.23 -57.23 -57.99 -46.58 15.12 32.09 53.00

FORECASTED SALES GROWTH

Future Strong and Flourishing Growth in Sales
CAGR 8,21% 2020F – 2022F
30.000
CAGR 19,38% 2023F – 2025F
27.064 It has been proved by MAPI performance in terms of generating a high and sustainable
25.000 22.670
growth sales historically (13,87% 2015-2019 CAGR) (Appendix D-1). For the outlook,
18.990
20.000
15.907
We see MAPI will experience growth in revenue amidst pandemic (8,21% CAGR) and
14.700
13.584
15.000 robust growth after pandemic (19,38% CAGR) fueled primarily by it’s online channel
10.000 growth and re-operating offline channel capacity after pandemic ends. In Q2 2020,
5.000 online channel contribution to the total sales increased 406% compared to 2019. As a
- result, in the first half 2020, online channel contributed 28% to the total sales (online
2020F 2021F 2022F 2023F 2024F 2025F
sales volume: Rp1,9 trillion), it’s a significant growth compared to 2019 which is only
Sources: Company Data, Team Estimates
contributed 1.1% to the total sales (online sales volume: Rp242 billion). In terms of
offline channel, MAPI has ± 2.300 retail stores. However, due to the pandemic rises,
REVENUE CONTRIBUTION CHANNEL
98,9% offline channel contribution experienced a significant decrease due to limitation of
100%
capacity and operating hours. Yet, after the pandemic ends in 2023 (Appendix D-2),
80% 72,0%
offline channel will operate in full-capacity. Therefore, while the offline channel starts
60%
40% 28,0%
operating in full capacity plus the online channel maximization, we believe MAPI can
20% achieve a high level of growth.
1,1%
0%
2019 Q2 2020
Online Channel Offline Channel
Sources: Company Data, Team Estimates
 Sustainable Efficiency Improvement to Achieve High Margins
FORECASTED OPERATING PROFIT
Since 2015, operating profit margin has growth significantly from 4,1% to 8,9% with
MARGIN 21,38% CAGR. In 2020, MAPI put an enormous effort to increasing efficiency in
9% 5,9%
6% 4,0%
5,1% operating expenses to survive amidst this pandemic condition, such as: restructured
3% their back-end staff and freeze the staff recruitment, as well as closing stores that are
0%
not performing well in which the rental period has also expired, etc (Appendix D-3).
-3%
-6% -3,8%
-2,7% As a result, MAPI succeeded in reducing the operating costs by 39% than it should
-4,9%
-9% have. With strong historical efficiency performance, in the future, we expect MAPI to
2020F 2021F 2022F 2023F 2024F 2025F
Sources: Company Data, Team Estimates
continue conduct an operating efficiency as usual and resulting -5.02% CAGR in
operating expenses.

FORECASTED LIABILITY & EQUITY Healthy Capital Structure Growth to Support Expansion
GROWTH From 2015-2019, equity growth has been greater than liability growth (Appendix D-4).
CAGR 2,0% CAGR 4,9%
This indicates that so far, the company has had an organic growth that is greater than
14.000 12.251 11.731 11.935
12.000 11.023 11.425 11.560 the growth in leverage. In 2020, liabilities jump dramatically to IDR 12,2 trillion,
10.000 causing DER jumped to 2,4 x. However, this did not occur due to a drastic increase in
8.000
6.162 6.076 debt, but only because of the impact of implementing the new SFAS, namely SFAS 73
6.000 5.012 5.025
4.389
4.000
4.089
(Appendix D-5) in which it doesn’t affect MAPI’s fundamental performance. Having a
2.000 fairly good historical performance, we believe that in the foreseeable future, equity
-
2020F 2021F 2022F 2023F 2024F 2025F
CAGR will be 4,9% and liabilities CAGR will be 2,0%. Which means, the company can
Liability Equity generate an bigger organic growth from equity rather than leveraged growth from
Sources: Company Data, Team Estimates liability.

FORECASTED CFO TO REVENUE

Prosperous Cashflow Generation as a Safety Net for Expansion
15% Cashflow is the most important thing in business. Without cashflow, there’s no
10,5% 10,4% 10,4%
12% 9,4% business that can survive. MAPI is engaged in the retail industry, in which there are no
9% 6,9%
5,4% huge amount of receivables from customers, because most of its customers are retail
6%
3% customers. With its historical healthy balance sheet and strong cash flow generation,
0% MAPI is well-equipped to pursue future growth endeavors (Appendix D-6). In the
2020F 2021F 2022F 2023F 2024F 2025F
future, MAPI’s will have a strong cash flow generation ability, shown by average CFO-
Sources: Company Data, Team Estimates
to-revenue of 10,9% 2020F-2025F, makes it well-positioned to fund expansion plans
with minimal risks of capital raising as well as far away from potential bankruptcy.

FORECASTED BV AND ROE Fundamental Recovery Leads to Wealthy Shareholders Return

375
17,3%
20%
As a result of the pandemic, the company's book value fell by 18,7%. However,
311 12,7% 12,7%
300 253
6,8%
253
306
10% overtime MAPI will recover from the pandemic impact and grow its Book Value by
221
225 206 0% 4,9% CAGR of 2021F-2025F. Supported by the EPS generated by ROE which recovered
150 -10%
-18,4% from time to time from a negative condition until return to above 15% as in 2019. We
75 -20%
0
-22,9%
-30%
believe this can be achieved by seeing various supports from healthy financial growth
2020F 2021F 2022F 2023F 2024F 2025F & effiency, adaptive business models, and GCG with a solid management team.
BV ROE

Sources: Company Data, Team Estimates

COMPARISON CONSUMER CONFIDENCE Valuation

INDEX 2008 VS 2020
150

124 126
122 118
125 114 We used a Free Cash Flow to Firm (FCFF) DCF valuation method to calculate an intrinsic
101 99
95 92 90 89 94 95 96 value of MAPI and relative valuation to validate the previous DCF valuation. The target
100 86
87
82 84
price from the valuation is Rp1113 / share which indicates that there is about 74%
92
75 85
78 79 82
87
83
79 potential upside from the recent price as of 3rd November 2020 at Rp640 / share. Our
50 key assumptions are as follows:

2008 2020

Source: Investing.com
 Strong Revenue Growth
Team noticed that there is a similar pattern in leading indicators, namely consumer
confidence index, between 2008 and 2020. This year, the index was plummeted to its
REVENUE 2008 - 2013 vs 2020F - 2025F bottom at the level of around 80 and the values rally right after hit the bottom point,
30.000 likewise in 2008. Therefore, team expected in the following years will create a similar
25.000 pattern which affected to company’s revenue growth with CAGR 8,21% between
20.000 2020F – 2022F which resulted from the Effective Annual Rates (EAR) of average retail
15.000 sales growth MoM in May 2020 – Sept 2020 and 19,38% in 2023F – 2025F which an
10.000 average of MAPI sales in 2009 – 2011.
5.000
Higher Productivity, More Efficient Working Capital
0
As the business recover and improvements in company’s sales systems, the firm also
Sources: Company Data, Team Estimates
is expected to be more productive in the next years. The team expects that the days
sales inventory will gradually decline from 154 days in 2020F to 128 days in 2025F. This
will lead into more efficient working capital each year to less inventory cost will be
DAYS SALES INVENTORY
needed.
170
154
155
140
134 134
129 128 128 Wider EBIT Margin
125 Aligned with the projected revenue growth, team also expected that there will be a
110 solid growth in MAPI’s EBIT in the following years. Since the company has shown some
2020F 2021F 2022F 2023F 2024F 2025F
Sources: Company Data, Team Estimates
initiatives to retain their performance amidst this coronavirus crisis, namely
renegotiate with the landlords for lease stores payment, cuts in employee salaries
(staffs, leaders, and management level), and automation in their offices.
FORECASTED EBIT AND SG&A EXPENSES
TO REVENUE
Effective and Efficient CAPEX allocation
2000 50%
39%
1601
The company is expected to be more careful in terms of business expansion in the
47% 46% 1152 40%
1000
45%
37% following years. This assumption based on the MAPI public expose in 2020 that stated
763
38% 30%
the company’s focus will mostly on a digitalization project, Instead offline stores
20%
0 number expansion. However, there will also an allocation of CAPEX to offline stores
10%
-662 -555
-433 but limited to strategic-location offline stores as the company targets. Thus, it is
-1000 0%
2020F 2021F 2022F 2023F 2024F 2025F expected to be a positive signal that there will be an effective and efficient-organic
EBIT growth in the future.
Percentage SG&A expenses to Revenue

Sources: Company Data, Team Estimates

Flourish D&A as Non-cash expenses
As non-cash expenses, the stable growth in depreciation and amortization are
FORECASTED CAPEX AND D&A beneficial since it will contribute to give an addition to free cash flow to firm (FCFF).
3000
Thus, the expected FCFF will get higher as the D&A expenses raise in the following
2.635
2.411 years.
2.223
2250 2.065
1.940 1.985
1.824
1.663
1.393
WACC
1500
930 1.007 1.090 We used WACC method to calculate the discount rate of the valuation. The rate is
750 11,80% which came from the 16,95% cost of equity and 7,63% cost of debt after tax.
The cost of equity is calculated by using CAPM method with the assumption as shown
0
2020F 2021F 2022F 2023F 2024F 2025F in given table below.
CAPEX D&A
Sources: Company Data, Team Estimates Key Assumption Rate Methodology
Risk-free rate 6,21% Forward yield of 10-year Indonesia government bond
Market premium 8,03% Using synthethic calculation by Damodaran
Beta 1,34 Adjusted beta based on PEFINDO calculation
Cost of Equity 16,95% Calculated via CAPM
Estimated future borrowing rate of MAPI based on a forecasted interest
Cost of debt 7,63%
expense and amount of interest bearing debt
Divided Total Liabilities to Total Equity Attributables for the owners of the
Debt to equity 2,77
company
WACC 11,80% The sum of weighted cost of equity and weighted cos of debt
Terminal growth 5,03% Using Real GDP Growth of Indonesia in 2019
 Terminal Growth
In addition, we adapt a real GDP growth rate of Indonesia in 2019 which was 5,03% as
PRICE TO CASH FLOW RATIO
a benchmark for our terminal growth rate, which resulted a terminal value as of
10 8,4
7,3 7,6 7,4
Rp46.188,8 billion.
8

6
3,6 Stock Price (IDR) PER (x) PBV (x) ROE (%)
4 Stock Code EV/Sales

2 2019 2020 2019 2020F 2019 2020F 2019 2020F 2020F

0 ERAA 1.795 1.775 19,4 25,0 1,2 1,1 6,1% 4,6% 16,3
2016 2017 2018 2019 2020 HERO 890 805 52,7 -8,3 1,0 1,0 1,8% -12,2% 0,9
Sources: Company Data, Team Estimates LPPF 4.210 950 8,6 -3,5 6,8 2,4 78,3% -68,0% 3,0
RALS 1.065 550 11,7 364,0 1,8 0,9 15,5% 0,3% 1,2
Average 23,1 94,3 2,7 1,4 25,4% -18,8% 5,4
MAPI 1.055 640 18,8 -13,9 2,8 2,0 15,1% -14,3% 1,2

MAPI HISTORICAL PBV VS ROE

Relative Price to Book Value (PBV) Valuation
15%
Furthermore, we also consider that multiple market PBV ratio to validate our previous
3,5 20%
13%
3,0
2,8 2,8 DCF valuation. PBV multiples is calculated from MAPI forecasted book value and latest
2,5
2,5
2,5
2,0
10% stock price on 3rd November 2020, which are Rp312 / share and Rp640 / share
8%
2,0 7%
0% respectively. Hence, recent PBV of the MAPI is around 2, while the average of peers
1,5
1,0
PBV is at 1,4. Thus, we arbitrary set the PBV for MAPI at 1,4 and with the forecasted
-10%
0,5 -14% book value. As a result, the fair value of the MAPI from this valuation is Rp437 / share.
0,0 -20% Even though MAPI has strong brand equity within the Industry, the team also
2016 2017 2018 2019 2020

PBV ROE
considered the real uncertainty condition. Thus, we recognized the peer valuation as
Sources: Company Data, Team Estimates
a minority weight of the valuation, which is 30% out of 100% weight for the valuation.

Risk Analysis

Economic Uncertainty Risk

Economic condition really play a big role in the MAPI’s overall performance. Because MAPI is in the retail
business that sells tertiary goods (e.g: High-end fashion and upper middle class F&B), their business is closely
related with the society’s buying power. In the recession period, one of the indication of economic downturn is
the falling of CCI Index (Consumer Confidence Index), in which affect the society’s willingness to spend their
money, especially for tertiary goods.
Risk management: To encounter the economic risk, MAPI build a solid management with their expertise to work
together as a team, and MAPI has survived several economic crises (1998, 2008, 2015). Strategies implemented
to survive amidst the crisis are different, depends on the crisis condition. Yet, the key success factor for crisis
survival is the people that run the business.

Foreign Exchange Risk

MAPI is exposed to the effect of foreign currency exchange rate fluctuations mainly because of other financial
assets and purchases of inventories denominated in USD, EUR and GBP.
Risk management: MAPI manages the foreign currency exposure by performing natural hedging, by
determining the price of products based on certain rate. When the purchase value of the goods exceeds that
rate limit, the Group will adjust the selling price. MAPI also entered into foreign exchange forward contracts
within established parameters. MAPI entered into several foreign exchange forward contracts with Standard
Chartered Bank, Bank CIMB Niaga, Deutsche Bank AG, Bank Mandiri and Bank Central Asia.

Interest Rate Risk

The Group’s exposure to the market interest fluctuation arises primarily from borrowings with variable interest
rates.
Risk management: MAPI reviews the interest rate movements to enable management to take appropriate
measures such as maintaining reasonable mix of fixed and variable rate borrowings to help manage the
exposure.
 Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligation resulting in financial
loss to MAPI. MAPI has no one largest customer, therefore MAPI does not have significant credit exposure to
any single counterparty or any group of counterparties having similar characteristics.
Risk management: MAPI places its bank balances and time deposits with credit worthy financial institutions to
diversify interest income and spread risk. Trade accounts receivable are entered with reputable credit card
issuers and other credit worthy parties

Liquidity Risk
Liquidity risk is the risk that arises due to difficulty providing cash within a certain period of time.
Risk management: MAPI has established an appropriate liquidity risk management framework for the
management of the MAPI’s short, medium and long-term funding and liquidity management requirements.
MAPI also manages liquidity risk by maintaining adequate reserves, banking facilities and reserves borrowing
facilities, and by continuously monitoring forecast and actual cash flows.

Scenario & Sensitivity Analysis

We note that our WACC should increase by 150 bps before our recommendation turns into a HOLD and 340 bps
before it becomes a SELL, with our base case forecasts already factoring in a 50-bps rate hike in 2020F.
WEIGHTED AVERAGE COST OF CAPITAL (%)
1.113 10,3% 10,8% 11,3% 11,8% 12,3% 12,8% 13,3%
3,53% 1.196 1.091 1.000 920 850 787 732
TERMINAL 4,03% 1.287 1.168 1.065 976 899 830 769
GROWTH 4,53% 1.393 1.256 1.140 1.040 953 877 810
RATE (%) 5,03% 1.520 1.361 1.227 1.113 1.016 931 857
5,53% 1.674 1.485 1.329 1.199 1.088 992 909
6,03% 1.863 1.635 1.450 1.298 1.171 1.062 969
6,53% 2.103 1.820 1.597 1.417 1.268 1.144 1.038

GCG and ESG Analysis

MAPI'S STOCK PRICE 5 YEARS GCG: Good Coordination & Growth

The company is committed to continuing to implement good corporate governance
1.200
and implementing it based on the eighth principles of the OJK as outlined in the
900
Circular letter of OJK No.39/SEOJK.04/2015 pertaining to the public company’s
600
guideline of corporate governance. Moreover, the Board of Commissioner and Board
300
of Directors are very professional in carrying out their respective duties with good
0
Des/2015 Des/2016 Des/2017 Des/2018 Des/2019
coordination and communication. Thus, it leads into good performance that could be
Source: Yahoo Finance seen from the tremendous growth in MAPI stock price for last 5 years. As a result, the
board could be recognized that they have been successfully carried out their duties,
which is maximizing shareholders wealth.

MAPI ESG SCORE 2019

Environmental, Society, Governance: Surpassing the Industry
Other than the good GCG, MAPI is also recognized as the company which has higher
Governance 68,2
ESG ratings within the industry. This achievement surely comes from a good ESG score
of the company. 1 out of 3 big components of the ESG score, the social aspect was
Social 76,9 being the highest scores among others. The high score of social aspects are proven
from the consistent and impactful Corporate Social Responsibility program in place.
Environment 56,4
The company mainly focused on the Education aspect for their CSR Program through
0 20 40 60 80 100 ”Rumah Belajar Anak Bintang” or called RAJAB. Aside from the social purpose, the
Source: Sense Folio events also help leverage the equity branding of the company, which lead into higher
potential revenue in the future.
 APPENDIX

BUSINESS DESCRIPTION

APPENDIX A-1: END TO END MERCHANT VALUE CHAIN

APPENDIX A-2: FORECASTED CONSUMER APPENDIX A-3: INDONESIA TOTAL

SPENDING 2011-2030 CAGR MARKET FOR FOOD DELIVERY SERVICES

10,50%
7,50%
6,20% 15%
6,00% 25%
5,30%
5%
5,20%
5,00% 10%
4,70%
4,60% 20%
4,50%

0,00% 2,00% 4,00% 6,00% 8,00% 10,00% 12,00%

Gojek Grab Food McDelivery

Source: Euromonitor Dominos Others
Source: Statista

APPENDIX A-4: UNDERPENETRATED APPENDIX A-4: SELLING SPACES /

SPORTSWEAR MARKET sqm / '000 PEOPLE
120 14
98,7 11,5
100 12
10,1
Potential Upside
80
10
8
60
6
40
34,4 3,9
24,3 21,6 4 2,7
20
1,7 1,3
4,6 3,4 3,3 2 0,9
0 0

Source: Euromonitor Source: Euromonitor

MACROECONOMIC OUTLOOK

Key Industry Supply Driver: Flourish Omnibus Law

The retail industry will take some benefits due to ratification of the Omnibus Law by the Government. The article 112 of
the Job Creation Law discusses the deletion of delivery taxable goods (BKP) on a consignment basis from the definition of
delivery taxable goods (BKP). This will make the company have a lower amount of tax expenses, specifically in value-
added tax (PPn) accounts. Thus, the industry companies will have more flexible cash allocation and could increase their
net profit margin (NPM) ratio, which is good as one of the profitability ratios. Not only from the government, the retail
companies, include MAPI, also received any supports from the landlords

Based on the macroeconomic outlook, MAPI will have the bright future at least for the next five years with the
expectation of domestic consumption will revive soon and the inflation will be more stable further. The revive of
domestic consumption and stable inflation are critical for the certainty of revenue projection in the following years
for retail industry companies, such as MAPI. Moreover, the projection of Indonesia’s Purchasing Power Parity will
rally in the following years is also a good catalysator since the purchasing power of people getting higher, they will
prefer to consume the global brand or import brand, which is most of MAPI’s brand are global brand. Thus, this
phenomenon hopefully will give a positive significant impact to MAPI’s sales in the next years.

Furthermore, the support of government in terms of low rate of BI7 DRRR is a positive catalysator for the
enterprises, include MAPI. Since the central bank rate stay low, the companies could issue the bonds or loan to
banks with a low interest rate. Thus, the companies, include MAPI, will be able to recover soon and expand the
business further with relatively low financial expense. As well as the macroeconomic, the industry level also provide
a solid positive signal ahead both from demand and supply side.

From the industry level, empirically, the people of Indonesia hesitate to consume amid the uncertainty of the end
of coronavirus pandemic. Hence, the arrival of the first vaccine in Indonesia bring new hopes and recognized as a
breeze to national sectors, include retail sectors, since it would increase the certainty of the pandemic situations in
the future and trigger the public to purchase retail goods. Moreover, the e-commerce growth also supports the
competitiveness in retail industry which will be good to MAPI improvement in further. Thus, the competitiveness
level of the MAPI will stronger that today. Likewise, the potential growth in demand in the future, the drivers of
supply side of Industry also help the retail companies, especially MAPI, be more resilient amid this coronavirus
pandemic.

The cooperative landlords that willing to give postponement payment is beneficial to the firm due to it help the
significant reduction in amount of operating expenses. Moreover, the fast response of the government to recover
the national economy, by ratificating the Omnibus Law, will give benefits to the enterprises. Specifically, to the
retail companies, such as MAPI which have a big portion in consignment sales, the Omnibus Law will eliminate the
tax expenses in delivery taxable goods (BKP) on a consignment basis. Thus, MAPI will have a discretion in their
financial expenses in the future.
COMPETITIVE POSITIONING: PORTER FIVE FORCES

APPENDIX C-1: JEEP PURCHASER TAX TARIFF

Goods Price : US$ 1.200 A high tax charge for Jeep Purchasing
Exemption : US$ 500
Business, for value of goods that
Price after Exemption : US$ 600
exceeds $12000 or Rp. 18.000.000,
Kurs : Rp 14.500
Customs Value : Rp 8.700.000
eventhough the customer could shop
Import duty (10% x Customs) : Rp 870.000 according to their preferences,
Import Value (Customs Value + Entrance domestic price that MAPI had still
Customs ) : Rp 9.570.000 cheaper than the Jeep Purchaser
PPN (10%) : Rp 957.000
charge.
PPh Pasal 22 with NPWP (7.5%) : Rp 717.750
Import Tax in Total (PDRI) : Rp 1.674.750

APPENDIX C-2
Luas Area (sqm)
Brand
2014 2015 2016 2017 2018 2019
Department Store 348.012 357.386 379.024 373.634 341.541 350.681
Specialty Stores 240.373 256.859 268.378 271.344 301.993 299.586
Food&Beverage 59.407 52.250 47.994 60.628 76.895 79.279
Other 2.686 2.686 2.686 2.920 2.920 2.920

Area (sqm)
Brand
2014 2015 2016 2017 2018
Starbucks 34.692 41.489 51.186 64.815 67.334
Krispy Kreme Doughnut 448 677 901 1.017 1.074
Pizza Marzano 2.249 2.530 3.086 3.916 3.942
Cold Stone 618 686 635 722 716
Godiva 66 66 161 108 108

APPENDIX C-3: MULTI-SEGMENT BRAND EQUITY

APPENDIX C-5: INTENT FOR INDONESIA

CONSUMER SPENDING POST COVID-19

32 45 23
25 55 20
APPENDIX C-4
Line of Business
21 53 26
Company Cafe and 14 64 22
Retail sales Department Stores
Restaurant
Indonesia 22 47 31
MAPI v v v
LPPF v v x 12 62 26
RALS v v x
HERO v x v
16 48 36
ERAA v x x 9 61 30
Singapore
Metro Holdings v v x 7 50 43
Malaysia
Parkson Holdings Bhd v v x 11 40 49
Thailand
Robinson PCL v v x
0 20 40 60 80 100 120
Philippines
SM Investment Corp v v v
Decrease Stay the Same Increase

Source: Mckinsey
FINANCIAL ANALYSIS

A. Future Strong and Flourishing Growth in Sales

It has been proved by MAPI performance in terms of generating a high and sustainable growth sales
historically (13.87% 2015-2019 CAGR). For the outlook, We see MAPI’s growth in revenue amidst
pandemic (8.21% CAGR) and robust growth after pandemic (19.38% CAGR) fueled primarily by it’s online
channel growth and re-operating offline channel capacity after pandemic ends.

Online channel that MAPI develop during the pandemic, before pandemic arises, online sales
contribution isn’t so significant. But, because of the pandemic arises, MAPI forced to put more concern
on developing the online channel. In Q2 2020, online channel have contributed 28% to the total sales,
increased 406% compared to 2019. In fact, in Q1 2020, online channel only contribute 3.1% from the total
sales. Therefore, robust online channel growth is certainly a factor that will drive sales growth.

Re-operating offline channel in full-capacity, In 2019, online channel only contributes 1.1% to the total
sales (sales volume: Rp242 billion). With 2,317 retail stores, offline channel contributes 98.9% to the total
revenue (sales volume: Rp21.3 Trillion). In other words, MAPI actually has an offline channel capacity
(2,317 retail stores) that can generate that much sales. However, because of the pandemic rises, offline
channel contribution experienced a significant decrease (due to limitation of operating hours and
limitation of visitor capacity by 50%.

During pandemic, MAPI has no plan to forcibly close their stores. So far, the MAPI stores that have been
closed are stores that have indeed expired their contracts (public expose), not stores that have been
forced to close due to the pandemic. Therefore, when the pandemic ends, MAPI still have the offline
channel capacity to generate sales as big as sales in 2019. For now, its just the matter of demand. So,
when pandemic ends in 2023 (Mckinsey), offline channel will operate in full-capacity in which will drive a
high growth in sales. Therefore, the sales will experience a robust growth to catch up the optimal point
(at full-capacity offline channel). Significant sales growth happens because during the pandemic, offline
channel isn’t in the full-capacity. So, when the offline channel returns to operate in full-capacity, MAPI
will experience a significant high growth in sales. Thus, the offline channel starts operating in full capacity,
plus the online MAPI channel which is already efficient because it was forged during Covid. Then MAPI's
sales growth in 2023F-2025F will grow by 19.38% CAGR.

APPENDIX D-1: HISTORICAL SALES APPENDIX D-2: COVID-19 END FORECASTED BY MCKINSEY
GROWTH

25.000 21.579
18.921
20.000 16.306
12.833 14.150
15.000
10.000
5.000
0
2015 2016 2017 2018 2019
Source: Company Data
BALANCE SHEET
Balance Sheet (in billion)

Balance Sheet 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F
ASSETS
CURRENT ASSETS
Cash & cash equivalents 503,9 1.525,7 1.286,4 1.412,1 1.816,7 3.128,2 1.242,4 1.183,9 1.437,6 1.755,5 2.134,4
Other financial assets 3,6 215,3 287,9 357,2 453,9 582,1 746,4 957,2 1.227,4 1.574,0 2.018,3
Trade accounts receivable:
Related parties 0,1 0,3 0,2 0,1 0,2 0,1 0,2 0,2 0,2 0,2 0,3
Third parties 334,3 375,3 501,5 389,3 407,7 333,6 361,0 390,7 466,4 556,8 664,7
Other accounts receivable:
Related parties 2,9 2,5 5,2 74,3 7,4 26,4 26,4 26,4 26,4 26,4 26,4
Third parties 230,7 199,9 201,8 237,8 180,5 188,5 188,5 188,5 188,5 188,5 188,5
Inventories 3.356,5 3.007,0 3.066,2 3.230,9 3.615,4 2.985,9 3.235,9 3.507,8 4.173,0 4.973,1 5.947,2
Advances 252,2 248,0 247,0 261,5 236,5 349,6 349,6 349,6 349,6 349,6 349,6
Prepaid taxes 523,1 494,8 511,6 605,1 592,7 721,1 721,1 721,1 721,1 721,1 721,1
Prepaid expenses 488,8 547,3 689,4 744,2 849,1 156,1 156,1 156,1 156,1 156,1 156,1
Derivative financial instruments 0,1 0,1 1,5 0,2 0,2 1,0 1,0 1,0 1,0 1,0 1,0
Total Current Assets 5.696,2 6.616,3 6.798,5 7.312,8 8.160,2 8.472,6 7.028,5 7.482,3 8.747,3 10.302,2 12.207,6
NON-CURRENT ASSETS
Long-term portion of prepaid rent 116,4 114,7 138,6 126,5 163,4 0,0 0,0 0,0 0,0 0,0 0,0
Investment in associates 186,5 192,8 212,8 222,2 226,5 198,3 198,3 198,3 198,3 198,3 198,3
Investments in joint ventures 0,0 0,0 0,0 122,2 144,2 138,3 138,3 138,3 138,3 138,3 138,3
Other financial assets 74,9 77,2 54,5 57,2 76,3 78,5 78,5 78,5 78,5 78,5 78,5
Deferred tax assets 63,0 130,8 177,3 191,7 188,4 342,6 342,6 342,6 342,6 342,6 342,6
Investment properties 235,8 231,7 323,6 562,6 565,1 562,9 562,9 562,9 562,9 562,9 562,9
Property, plant and equipment 2.437,9 2.637,0 3.103,3 3.471,3 3.784,8 3.454,1 3.114,4 2.770,1 2.550,6 2.388,0 2.293,4
Right-of-use assets 0,0 0,0 0,0 0,0 0,0 4.511,7 3.918,3 3.286,9 2.676,5 2.091,0 1.535,2
Deferred license fees and brand 90,7 104,0 113,1 136,6 146,6 167,0 167,0 167,0 167,0 167,0 167,0
Refundable deposits 296,5 333,6 371,1 398,4 456,8 464,0 464,0 464,0 464,0 464,0 464,0
Advance for purchases of property, plant, and equipment 246,6 243,5 132,6 31,3 24,8 22,7 22,7 22,7 22,7 22,7 22,7
Goodwill 38,4 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
Others 0,0 1,9 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
Total Non-current Assets 3.786,7 4.067,2 4.626,9 5.319,9 5.776,9 9.940,2 9.007,1 8.031,4 7.201,4 6.453,3 5.803,0
TOTAL ASSETS 9.482,9 10.683,4 11.425,4 12.632,7 13.937,1 18.412,8 16.035,5 15.513,7 15.948,7 16.755,5 18.010,6
LIABILITIES & EQUITY
CURRENT LIABILITIES
Bank loans 790,5 752,6 1.463,7 1.347,7 1.492,8 2.861,5 1.593,0 2.118,2 2.354,5 2.528,2 2.609,9
Trade accounts payable:
Related parties 17,2 19,9 34,0 38,7 45,5 26,9 29,1 31,6 37,5 44,7 53,5
Third parties 1.138,3 1.034,4 1.216,9 1.301,9 1.712,4 1.148,0 1.244,1 1.348,7 1.604,4 1.912,0 2.286,6
Other accounts payable:
Related parties 2,2 3,7 0,0 4,3 3,2 0,2 0,2 0,2 0,2 0,2 0,2
Third parties 608,7 579,9 739,2 672,9 789,2 1.100,5 1.100,5 1.100,5 1.100,5 1.100,5 1.100,5
Taxes payable 146,4 132,7 165,8 177,9 214,2 373,0 418,4 499,6 476,3 540,5 572,5
Accrued expenses 235,4 293,8 389,0 539,1 584,7 750,7 818,0 868,5 858,1 894,2 791,0
Unearned income 204,7 227,5 320,9 335,1 418,2 601,4 686,8 737,7 806,2 733,0 781,3
Current maturities of long-term liabilities:
Bank loan 145,9 170,3 228,3 40,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
Bonds payable 0,0 964,7 0,0 948,8 401,0 0,0 0,0 0,0 0,0 0,0 0,0
Liabilities for purchase of vehicles 0,0 1,1 6,9 9,2 8,3 7,0 4,3 0,8 0,1 0,0 0,0
Lease liabilities 0,3 0,1 0,0 0,0 0,0 1.215,6 1.215,6 1.055,8 885,6 721,2 563,4
Derivative financial instruments 0,8 0,6 0,1 3,3 4,1 1,0 1,0 1,0 1,0 1,0 1,0
Total Current Liabilities 3.290,5 4.181,3 4.564,7 5.418,9 5.673,6 8.085,8 7.111,1 7.762,4 8.124,6 8.475,5 8.759,8
NON-CURRENT LIABILITIES
Bank loan 239,1 99,6 0,0 46,7 0,0 0,0 0,0 0,0 0,0 0,0 0,0
Bonds payable 2.480,0 2.509,1 1.841,9 370,3 0,0 0,0 0,0 0,0 0,0 0,0 0,0
Liabilities for purchases of vehicles 0,0 2,4 11,1 7,5 5,5 5,3 1,0 0,2 0,0 0,0 0,0
Lease liabilities 0,1 0,0 0,0 0,0 0,0 3.054,5 2.652,8 2.225,3 1.812,0 1.415,6 1.039,4
Tenants' deposits 10,6 11,6 24,6 29,7 36,3 37,5 51,1 69,6 94,7 128,9 175,4
Employment benefits obligation 425,9 459,1 567,6 574,0 698,0 789,7 893,5 1.011,0 1.143,9 1.294,3 1.464,5
Deferred tax liabilities 37,8 33,7 13,3 8,8 11,1 17,6 30,6 43,8 34,8 18,0 36,1
Decommissioning cost 24,0 26,1 29,6 37,1 64,3 82,3 105,3 134,7 172,3 220,4 282,0
Derivative financial instruments 0,0 156,9 130,1 77,6 77,8 177,8 177,8 177,8 177,8 177,8 177,8
Total Non-current Liabilities 3.217,5 3.298,6 2.618,3 1.151,6 893,0 4.164,7 3.912,1 3.662,4 3.435,5 3.255,0 3.175,1
TOTAL LIABILITIES 6.508,0 7.479,9 7.183,0 6.570,5 6.566,6 12.250,5 11.023,2 11.424,8 11.560,1 11.730,5 11.934,9
EQUITY
Capital stock 823,4 823,4 823,4 823,4 825,1 825,1 825,1 825,1 825,1 825,1 825,1
Difference in value of equity transaction with non-controlling
0,0 0,0 565,7 1.222,2 1.194,9 1.194,9 1.194,9 1.194,9 1.194,9 1.194,9 1.194,9
interests
Difference due to change in equity of subsidiaries, associates
15,6 15,6 18,8 34,0 35,7 35,7 35,7 35,7 35,7 35,7 35,7
and joint ventures
Other comprehensive income -48,3 -28,2 -56,0 13,1 -16,7 -79,9 -79,9 -79,9 -79,9 -79,9 -79,9
Other capital - deferred shares purchase plan 0,0 0,0 0,0 4,1 7,4 9,0 9,0 9,0 9,0 9,0 9,0
Other equity component 507,9 507,9 507,9 507,9 507,9 507,9 507,9 507,9 507,9 507,9 507,9
Retained earnings 1.697,1 1.905,6 2.198,9 2.868,6 3.636,7 2.686,6 1.723,9 950,7 1.201,7 1.734,4 2.614,2
Less treasury shares -20,9 -20,9 -20,9 -20,9 -20,0 -20,0 -20,0 -20,0 -20,0 -20,0 -20,0
Total Equity Attributable To The Owners Of The Company 2.974,9 3.203,5 4.037,8 5.452,4 6.171,0 5.159,3 4.196,6 3.423,4 3.674,4 4.207,2 5.086,9
Non-controlling Interests 0,0 0,0 204,6 609,7 1.199,5 1.002,9 815,8 665,5 714,2 817,8 988,8
Total Equity 2.974,9 3.203,5 4.242,4 6.062,2 7.370,5 6.162,2 5.012,4 4.088,9 4.388,7 5.025,0 6.075,7
TOTAL LIABILITIES & EQUITY 9.482,9 10.683,4 11.425,4 12.632,7 13.937,1 18.412,8 16.035,5 15.513,7 15.948,7 16.755,5 18.010,6
INCOME STATEMENT
Income Statement (in billion)

Income Statement 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F
Net Revenues 12.832,8 14.149,6 16.305,7 18.921,1 21.578,7 13.584,0 14.699,7 15.907,2 18.990,0 22.670,2 27.063,7
Cost of goods sold and direct cost -6.830,6 -7.276,6 -8.449,6 -9.869,4 -11.322,6 -7.799,3 -8.452,3 -9.162,5 -10.900,2 -12.990,0 -15.534,6
Gross Profit 6.002,2 6.873,0 7.856,1 9.051,7 10.256,1 5.784,6 6.247,4 6.744,6 8.089,7 9.680,2 11.529,1

Selling expenses -4.641,7 -5.033,0 -5.673,9 -6.437,5 -7.051,7 -5.395,6 -5.692,2 -6.005,2 -6.205,7 -7.222,4 -8.405,7
General and administrative expenses -837,9 -952,1 -1.061,7 -1.108,7 -1.273,7 -1.050,9 -1.110,0 -1.172,5 -1.120,9 -1.306,2 -1.522,0
Operating Profit 522,6 887,9 1.120,5 1.505,5 1.930,8 -661,9 -554,9 -433,0 763,2 1.151,7 1.601,5

Finance cost -399,3 -420,7 -403,6 -536,1 -212,4 -348,7 -491,6 -424,1 -404,6 -373,6 -338,9
Share in net income/loss of associates and joint ventures -25,9 -31,0 -5,6 -1,4 17,0 -34,2 0,0 0,0 0,0 0,0 0,0
Final tax expense -20,5 -21,9 -23,3 -39,4 -30,3 -20,5 -23,4 -25,4 -30,4 -37,0 -42,1
Gain (Loss) on disposal/sale of property, plant and equipment
-31,3 -42,7 -78,8 215,6 -31,8 -10,1 0,0 0,0 0,0 0,0 0,0
and investment properties
Gain (loss) on foreign exchange -32,4 34,2 12,4 35,7 -7,9 15,6 0,0 0,0 0,0 0,0 0,0
Interest income 11,3 9,5 33,2 30,4 46,5 67,8 33,1 36,8 41,3 42,6 44,7
Other gains and losses 123,7 -13,9 -57,4 -37,0 -86,3 23,0 0,0 0,0 0,0 0,0 0,0
Income Before Tax 148,1 401,5 597,5 1.173,4 1.625,5 -968,9 -1.036,8 -845,7 369,4 783,7 1.265,2

Income tax expense -118,0 -193,0 -247,4 -359,5 -462,0 0,0 0,0 0,0 -92,3 -195,9 -316,3
Net Income 30,1 208,5 350,1 813,9 1.163,5 -968,9 -1.036,8 -845,7 277,0 587,8 948,9

Net Income Attributable To:

Non-controlling Interests -7,2 0,0 15,4 78,1 230,0 -18,8 -74,1 -72,5 26,1 55,1 69,1
Owners of the Company 37,3 208,5 334,7 735,8 933,5 -950,1 -962,7 -773,2 251,0 532,8 879,8

CASHFLOW STATEMENT
Cash Flow Statement

Cash Flow Statement 2020F 2021F 2022F 2023F 2024F 2025F

Net Income -950,1 -962,7 -773,2 251,0 532,8 879,8

Depreciation 1.824,15 1.939,92 2.065,21 2.222,71 2.410,73 2.635,19
(Increase)/Decrease in Inventory 629,5 -250,0 -271,9 -665,3 -800,1 -974,1
(Increase)/Decrease in Account Receivables 47,1 -27,4 -29,7 -75,7 -90,4 -108,0
Increase/(Decrease) in Account Payables -274,8 98,4 107,0 261,8 314,8 383,3
Increase/(Decrease) in Lease Liabilities 0,0 0,0 -159,9 -170,1 -164,5 -157,8
Total Cash Flow from Operating Activities 1275,8 798,2 1097,4 1994,4 2367,8 2816,1

(Increase)/Decrease in Right of Use Assets -548,1 -593,2 -641,9 -766,3 -914,8 -1092,1
(Increase)/Decrease in Fix Assets -382,3 -413,7 -447,6 -626,4 -747,8 -892,8
Total Cash Flow from Investing Activities -930,4 -1.006,8 -1.089,5 -1.392,7 -1.662,6 -1.984,9

Increase/(Decrease) in Short-Term Debt 966,4 -1.271,2 361,9 65,5 9,1 -76,1

Increase/(Decrease) in Long-Term Debt -0,3 -406,0 -428,2 -413,4 -396,4 -376,2

Total Cash Flow from Financing Activities 966,2 -1.677,2 -66,4 -348,0 -387,3 -452,4

Net Cash Flow 1311,6 -1885,9 -58,5 253,7 317,9 378,9

Beginning Cash 1.816,7 3.128,2 1.242,4 1.183,9 1.437,6 1.755,5
Ending Cash 3128,2 1242,4 1183,9 1437,6 1755,5 2134,4

RETAINED EARNINGS
Retained Earnings (in million) 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F
Beginning Retained Earnings 1.653 1.697 1.906 2.199 2.869 3.637 2.687 1.724 951 1.202 1.734
Add : Profit 37 208 335 736 933 -950 -963 -773 251 533 880
Less : Dividends 0 -415 -66 -166 0 0 0 0 0 0 0

End Retained Earnings 1.697 1.906 2.199 2.869 3.637 2.687 1.724 951 1.202 1.734 2.614
DEBT SCHEDULE
Debt Schedule 2020F 2021F 2022F 2023F 2024F 2025F
Cash Balance (End of Last Year) 1.817 3.128 1.242 1.184 1.438 1.756
Plus : CFO & CFI 345 -209 8 602 705 831
Plus : CFF (Before L.O.C) 0 -406 -428 -413 -396 -376
Less : Minimum Cash Balance 1.151 1.245 1.347 1.608 1.920 2.292
Total Cash Available or (Required) from L.O.C 1.011 1.269 -525 -236 -174 -82
Line of Credit 2.861,5 1.593,0 2.118,2 2.354,5 2.528,2 2.609,9

Long-term debt:
Bank loan 0,0 0,0 0,0 0,0 0,0 0,0
Bonds payable 0,0 0,0 0,0 0,0 0,0 0,0
Liabilities for purchases of vehicles 5,3 1,0 0,2 0,0 0,0 0,0
Lease liabilities 3.054,5 2.652,8 2.225,3 1.812,0 1.415,6 1.039,4
Current maturities of long-term liabilities:
Bank loan 0,0 0,0 0,0 0,0 0,0 0,0
Bonds payable 0,0 0,0 0,0 0,0 0,0 0,0
Liabilities for purchase of vehicles 7,0 4,3 0,8 0,1 0,0 0,0
Lease liabilities 1.215,6 1.215,6 1.055,8 885,6 721,2 563,4

Debt to Payed debt

Bank loan to Payed bank loan 0,85 0,85 0,85 0,85 0,85 0,85
Bonds payable to Payed bonds payable 1,00 1,00 1,00 1,00 1,00 1,00
Liabilities for purchases vehicles to Payed liabilities for
0,76 1,22 1,22 1,22 1,22 1,22
purchases vehicle
Lease liabilities to Payed lease liabilities 2,51 2,51 2,51 2,51 2,51 2,51

Interest Expense
Interest rate Line of credit 7,33% 7,33% 7,33% 7,33% 7,33% 7,33%
Interest rate Long-term Bank loan 0% 0% 0% 0% 0% 0%
Interest rate Long-term Bonds payable 0% 0% 0% 0% 0% 0%
Interest rate Long-term Liabilities for purchases of vehicles 0% 0% 0% 0% 0% 0%
Interest rate Long-term Lease liabilities 8,05% 8,05% 8,05% 8,05% 8,05% 8,05%

Interest expense long-term debt 189,1 328,3 288,0 240,7 194,6 150,5
Interest expense line of credit 159,6 163,3 136,0 164,0 179,0 188,3
Total Interest Expense 348,7 491,6 424,1 404,6 373,6 338,9

PROPERTY, PLANT, & EQUIPMENT

Property, Plant, and Equipment 2020F 2021F 2022F 2023F 2024F 2025F
Beginning Gross PPE 7.943,4 8.325,6 8.739,3 9.186,9 9.813,4 10.561,2
Net Additions (Capital Expenditures) 382,3 413,7 447,6 626,4 747,8 892,8
Ending Gross PPE 8.325,6 8.739,3 9.186,9 9.813,4 10.561,2 11.454,0

Beginning Accumulated Depreciation -4.153,8 -4.871,5 -5.624,9 -6.416,8 -7.262,8 -8.173,2

Depre Charge -717,7 -753,4 -792,0 -846,0 -910,4 -987,4
Ending Accumulated Depre -4.871,5 -5.624,9 -6.416,8 -7.262,8 -8.173,2 -9.160,6

PPE 3.454,1 3.114,4 2.770,1 2.550,6 2.388,0 2.293,4

Net Additions to Sales 2,8% 2,8% 2,8% 3,3% 3,3% 3,3%
Depreciation to Gross PPE -8,6% -8,6% -8,6% -8,6% -8,6% -8,6%

RIGHT OF USE ASSETS

Right of Use Assets 2020F 2021F 2022F 2023F 2024F 2025F
Beginning At Cost 7.643,8 8.192,0 8.785,1 9.427,0 10.193,3 11.108,1
Net Additions 548,1 593,2 641,9 766,3 914,8 1092,1
Ending At Cost 8.192,0 8.785,1 9.427,0 10.193,3 11.108,1 12.200,2

Beginning Accumulated Depreciation -2.573,8 -3.680,3 -4.866,8 -6.140,1 -7.516,8 -9.017,1

Depre Charge -1.106,4 -1.186,6 -1.273,2 -1.376,7 -1.500,3 -1.647,8
Ending Accumulated Depre -3.680,3 -4.866,8 -6.140,1 -7.516,8 -9.017,1 -10.664,9

Right of Use Assets 4.511,7 3.918,3 3.286,9 2.676,5 2.091,0 1.535,2

Net Additions to Sales 4,0% 4,0% 4,0% 4,0% 4,0% 4,0%
Depreciation to Ending At Cost -13,5% -13,5% -13,5% -13,5% -13,5% -13,5%
B. Sustainable Efficiency Improvement to Achieve High Margins
APPENDIX D-3:
According to VP Investor Relations & Corporate Communications MAP Group, Ratih Darmawan Gianda,
this year MAPI focuses on operational efficiency, namely by:
• Will not open new stores and focus on maximizing existing stores (2,317 stores).
• Focus on existing brands rather than releasing new brands. So that the operational load is more controlled.
• Closing stores that are not performing well and the rental period has also expired.
• MAPI has also get a lot support from their brand principal. The brand principal delays the delivery of goods in
the second half in order to avoid a pile up of goods, to support MAPI’s efficiency.
• MAPI also did a restructuring of the back end staff by changing processes that can be automated with software
and does not renew the contract for employees under the contract
• 60% of the total cost spent by rental and labor. In Q2 2020, MAPI will receive support in the form of relaxation
for rents from landlords. Then, for labor recruitment is also freeze first so that it can reduce operating expenses
by 39%.

C. Healthy Capital Structure Growth to Support Expansion

APPENDIX D-4: HISTORICAL LIABILITY &

EQUITY GROWTH
14.000
CAGR 13,4% CAGR 16,5% 12.214
12.000

10.000

8.000 7.480 7.183 7.371

6.508 6.570 6.567 6.384
6.062
6.000
4.242
4.000 2.975 3.204

2.000

-
2015 2016 2017 2018 2019 2020F

Liability Equity

Source:
Source:Company
CompanyData
Data

APPENDIX D-5:
PSAK 73, Leases
PSAK 73 requires the recognition of most leases on the statement of financial position. PSAK 73 effectively
removes the classification of leases as either finance or operating leases and treats all leases as finance
leases for lessees with optional exemptions for short-term leases where the term is 12 months or less.
The accounting treatment for lessors remains essentially unchanged, with the requirement to classify
leases as either finance or operating leases.

D. Prosperous Cashflow Generation as a Safety Net for Expansion

APPENDIX D-6: HISTORICAL CFO TO

REVENUE
12% 11,0%

10% 8,7% 8,3% 8,4%

8%

6%

4%
2,0%
2%

0%
2015 2016 2017 2018 2019
Source: Company Data
VALUATION

FCFF DCF VALUATION

2020F 2021F 2022F 2023F 2024F 2025F
Items
IDR bn IDR bn IDR bn IDR bn IDR bn IDR bn
EBIT -662 -555 -433 763 1.152 1.601
Less: Cash Taxes -20 -23 -25 -123 -233 -358
Plus: D&A 1.824 1.940 2.065 2.223 2.411 2.635
Less: CAPEX -930 -1.007 -1.090 -1.393 -1.663 -1.985
Less: Change in NWC -2.601 1.414 -302 478 721 1.084
FCFF -2.390 1.769 215 1.949 2.388 2.978
Terminal Value 46.189
Transaction CF -2.390 1.769 215 1.949 2.388 49.167
WACC 12%
Multiply: Discount Factor 0,9 0,8 0,7 0,6 0,6 0,5
Discounted CF -2.137 1.415 154 1.247 1.367 25.176

WEIGHTED VALUATION
Method Value Weighted Fair Value
DCF Valuation 1.403 70% 982
Relative Valuation 437 30% 131
Weighted Fair Value 1.113
Current price (3 Nov 2020) 640
Potential Upside 73,95%

CAPITAL STRUCTURE 2020F – 2025F

2020F 2021F 2022F 2023F 2024F 2025F Average
Interest bearing debt 7.144 5.467 5.400 5.052 4.665 4.213 -
Interest expenses 349 492 424 405 374 339 -
Yield interest debt 4,9% 9,0% 7,9% 8,0% 8,0% 8,0% 7,6%
Total equity 5.159 4.197 3.423 3.674 4.207 5.087 -
Total capital 12.303 9.663 8.824 8.727 8.872 9.300 -

Portion Debt 58% 57% 61% 58% 53% 45% 55%

Portion Equity 42% 43% 39% 42% 47% 55% 45%

Peer Comparison
We conduct a peer comparison by using market multiples P/E ratio, PBV ratio, Return on Equity (%), and EV/Sales
ratio as our multiples. We compare MAPI to its peers in trade subsectors in Indonesia which have similar business
model with the company. We only compare to national companies, instead of international peers, due to different
government response policy amidst this pandemic. The different policy will lead into different performance of the
enterprises. Based on the peer comparison, we know that P/E ratio of MAPI is below among others. However, the
PBV ratio, indicates that the price of MAPI’s share to its book value is above the average among others. It is normal
since MAPI has strong brand equity which is make sense that the company is valued more expensive than its peers.
Moreover, this is not significantly critical since the performance of MAPI among its industries is relatively better,
which is reflected by better ROE performance and EV/sales ratio among others amid this coronavirus pandemic.
GCG & ESG ANALYSIS

JOINT MEETING ATTENDANCE BOD & BOC

Name Meeting Attendance % Attendance
Board of Commissioner
Mari Elka Pangestu 3 100%
GBPH H. Prabukusumo, S.Psi 2 67%
Chiew Guan Chao 2 67%
Hendry H. Batubara 3 100%
Johanes Ridwan 3 100%
Board of Directors
H.B.L. Mantiri 3 100%
V.O. Sharma 3 100%
Susiana Latif 3 100%
Sjeniwati Gusman 3 100%
Michael D. Capper 3 100%
Handaka Santosa 3 100%
Sintia Kolonas 3 100%

JOINT MEETING ATTENDANCE BOD & BOC

Environment Social Governance
Sub-category Score Sub-category Score Sub-category Score
Climate Change Health & Safety Board Leadership
Air Quality 55,3 Health Safety 76,7 Board Leadership 65,8
Compliance Environmental Regulations 54,5 Employee Standards CEO Executive Leadership 60,6
Energy Management 46,3 Fair Labor Practices 69,1 Management Leadership 65,9
Fuel Management 38,1 Labor Management Relations 78,9 Internal Control Risks 82,4
GHG Emissions 53,8 Training Education 77,3 Business Innovation & Performance
Sustainability Diversity Equal Opportunity 77,8 Economic Performance 49,4
Environmental Impacts Assets Operations 83,4 Compensation Benefits 69,5 Industry Innovation Infrastructure 74,4
Supplier Environmental Assessment 56,5 Recruitment Development Retention 68,0 Market Presence 67,0
Environ Business Development 49,0 Community Responsibility Outside Activities
Evaluation Environ KPI 56,0 Access Affordability 79,9 Indirect Economic Impacts 73,5
Life cycle Impacts Products Services 47,4 Customer Health Safety 69,2 Partnerships 62,7
Product Packaging 57,2 Customer Privacy 76,6 Peace Justice Institutions 78,8
Product Quality Safety 65,1 Fair Disclosure Labeling 82,7 Transparency 68,5
Responsible Consumption Production 47,1 Fair Marketing Advertising 74,0 Business Ethics
Biodiversity & Water Local Communities 74,7 Anti-Corruption Policies 51,6
Biodiversity Impacts 56,7 Social Impacts Assets Operations 82,9 Anti-Competitive Behavior 92,5
Water Waste Management 58,2 Human Rights Business Ethics Transparency Payments 62,6
Waste Hazardous Materials Management 77,6 Child Labor 80,4 Regulatory Capture Political Influence 67,4
Freedom Association Collective Bargaining 83,3
Human Rights 74,2
Non Discrimination 84,6
Rights Indigenous Peoples 81,6