PT.

ADITYA MANDIRI SEJAHTERA

ANNUAL REVIEW 2010 AND TARGET 2011

ANNUAL REVIEW 2010

VISION

To be the number one Indonesian Retail Fashion Company that serves various level customers in the region, with a vertical integration process from design to the end consumers, where their people can grow expressed their self, unlimited, in the friendly environment. Furthermore, to expand the company ability to the unlimited sector, where we can divert our resources so that we can improve our country, and prosperity.

MISSION

Improve the company operations into the most efficient and profitability growth. Become the no 1 Fashion Retail Company in Indonesia To be the first Indonesian Retail that successfully develop and grow the vertical integration process, nation wide.

2010 STRATEGIC OVERVIEW

ROADMAP TO IMPROVED SALES/PROFITABILITY

DRIVING A SELLING CULTURE
DRIVING SALES Average Purchase Conversion Rate SALE/events Benchmarking Will to Sell MARKETING Strategic Marketing Plan Visual Merchandizing Service Standard INVESTMENT IN OUR PEOPLE Training & Development Reward & Accountability MERCHANDIZE/PROD UCT Merch. Re categorize High Quality w/ affordable Price Continually Fresh Strategic Purchasing

RETAIL GROWTH STRATEGY

ORGANIZATIONAL STRUCTURE Slim But Energic Efficient and Flexible One roof to improve communication

FINANCIAL Control of Cost Benchmarking Presenting Accurate Data, timely Dynamic Financial

INFORMATION TECHNOLOGY System Upgraded Complete and Informative data Accurate data, timely

STORE ENVIRONTMENT Improve store Ambiance Modern and Friendly

MARKET PENETRATION

RETAIL FORMAT

+ Economy pack item Store resizing. Rubah small store menjadi medium size store (+ 100 sqm) Marketing program
RETAIL FORMAT DEVELOPMENT

PT . A M S ST R A TE G Y
TARGET MARKET
EXISTING NEW MARKET DVELOPMENT / EXPANSION
Buka temporary store untuk melihat penerimaan pasar di lokasi-lokasi pasar yg baru. Convert menjadi permanent store if possible.

RETAIL GROWTH STRATEGY

EXISTING

DIVERSIFICATION
Mengembangkan brand Mississippi dan Celcius untuk differensiasi pasar.

NEW

Develop new Bazaar concept store di setiap kota

RETAIL GROWTH STRATEGY

SUPPLY SOURCING
Increase Productivity All brand New Brands Development

MARKET ABSORBTION
Horizontally Vertically

STORE
Achieve Minimum Economic Scale Operationally efficient

2010

QUANTITATIVE TARGET

Millions
10,000 15,000 20,000 25,000 5,000

TOTAL AMS

JAN FEB APR 2010

Millions 2,000 4,000 6,000

2009 Trgt 2010

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

SALES ACHIEVEMENT

MAR MAY JUN JUL AUG SEP OCT NOV DEC

MISSISSIPPI CELCIUS

IWAN FASHION

Millions 4,000 3,000 2,000 1,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Millions
10,000 15,000 5,000

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

ACHIEVEMENT 2010

2010 RESULT

OUR ACHIEVEMENT
2009 No. of Stores Square Meter Sales (Rp. Juta) Gross Margin (Rp.juta) Sales Productivity (Rp juta/sqm) GM Productivity (Rp. juta/sqm) Store Footage (sqm) # of Employee GMROL (Rp.juta/HQ) 97 8.677 97.363 42.753 11,221 4,927 89,45 1.200 35,627 2010 120 11.331 117.218 61.628 10,345 5,439 94,43 1.150 53,590 ( 23 2.654 19.855 18.875 -876 512 4,98 -50 17.963

2010 RESULT

OUR ACHIEVEMENT
2009 Inventory @ Closing Year (Rp juta @cost) GMROI Inventory Turnover Personel Cost (Store level) Operating Exp. (Store level) Nett Profit 31.082 1.09 3.13 9.5% 31.1% -5.1% 2010 54.755 1.44 2.14 10.5% 36.6% 3.2% ( 23.673 0.35 -0.99 1.0% -5.5% 8.3%

TARGET 2010

ACHIEVEMENT 2010

OBJECTIVE

TOTAL SALES: Rp. 150.510.000.000 F3 : Rp. 83,385,000,000 RM : Rp. 30,120,000,000 RC : Rp. 28,690,000,000 Bazaar : Rp. 8,315,000,000 GROSS MARGIN : TEORITICAL MARGIN 60 % ACTUAL MARGIN > 50 % OPERATING EXP.: Rp. 60.860.436.000,- (< 40%) HO : Rp. 16,122,131,000 STORE : Rp. 44,738,149,000 EBIT : Rp. 12.315.824.000 (8,2%)

Rp. Rp. Rp. Rp. Rp.

117.218.027.743 64.992.753.903 21.251.376.330 24.785.113.910 6.188.783.600

77.9% 77.9% 70.6% 86.4% 74.4%

Rp. Rp. Rp.

52,6% 52.741.059.760 9.887.029.220 42.854.030.540

105% -99% 113% 104%

AND WHAT WE HAVE DONE

MARKET SEGMENTATION Regular Store Targeting to middle middle up social economic class (SES B+, B) Secondary Market to the me too BRAND STRATEGY Promoting the Mississippi and Celcius brand as a premium-middle up market product. Maintain Iwan Fashion brand as a middle lower class, but starting to diversified to middle up market through premium store ambiance.

THE STRATEGY

AND WHAT WE HAVE DONE

BRAND AWARENESS Improving the awareness of Mississippi, Celcius and Iwan Fashion brand through Brand Consistency and well planned marketing activity Start to introduce new brand as a single identity product to launce as a new store PRODUCT DEVELOPMENT & PURCHASING Improving product quality and design to compete the middle up market. Expanding overseas (CHINA) purchasing up to 70% of total Preparing new brand launching by Q3 2010 In store zoning by brand (F3)

THE STRATEGY

AND WHAT WE HAVE DONE

STORE CONCEPT Aligning store ambiance and fit out with Brand Image and awareness for creating differentiation and improve the brand competition position. EXPANSION STRATEGY Expand to all primary city in Indonesia for complete brand force. Expand-ready to all primary and secondary city, with full information on hand. Start studying for GO INTERNATIONAL project.

THE STRATEGY

AND WHAT WE HAVE DONE

PROCUREMENT Cost reduction program on all aspect Reduce buying cost by moving up stream FINANCIAL STRATEGY Strictly Cost Control Management, Dynamic Treasury Management IT STRATEGY Leap to next phase

THE STRATEGY

THE STRATEGY

AND WHAT WE HAVE DONE

CORPORATE IDENTITY Corporate image face lift HUMAN RESOURCES Preparing all our partner for go global. Continuous skill training for all level of staff

ACHIEVEMENT 2010

TOTAL AMS

IWAN FASHION

Thousands

600 400 200 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

PURCHASE (pcs)
800 700 600 500 400 300 200 100 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Thousands TARGET ACTUAL Thousands
MISSISSIPPI

Thousands

400 200 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC MISSISSIPPI

CELCIUS

400 200 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC CELCIUS

COMPANY GROWTH 2005 - 2010

COMPANY GROWTH 2005 - 2010

TOTAL AMS

IWAN FASHION

Millions

100,000 50,000 0 2005 2006 2007 2008 2009 2010

SALES
Millions
140,000 120,000 100,000 80,000 60,000 40,000 20,000 0
CELCIUS MISSISSIPPI

Millions

30,000 20,000 10,000 0 2005 2006 2007 2008 2009 2010

2005 2006 2007 2008 2009 2010

25,000 20,000 15,000 10,000 5,000 0 2005 2006 2007 2008 2009 2010

Millions

COMPANY GROWTH 2005 - 2010

TOTAL AMS

IWAN FASHION

42.60% 33.53%

44.60% 39.27%

44.37% 43.10%

45.55% 44.30%

46.70% 40.68%

48.39%

GROSS MARGIN
52.58% 43.91% 2005
MISSISSIPPI

2006

2007

2008

2009

2010

43.30%

42.70%

44.69%

47.39%

39.68% 33.92%

41.10%

43.50%

44.30%

42.60% 35.63%

44.60% 39.95%

50.95% 43.94% 43.10% 44.30%

58.80% 51.15% 46.70%

2005 2005 2006 2007 GROSS MARGIN 2008 2009 BENCHMARK 2010
CELCIUS

2006

2007

2008

2009

2010

44.60% 35.04% 2005

47.50% 43.29%

48.15% 45.70%

51.34% 46.00%

50.12% 48.20%

59.26%

2006

2007

2008

2009

2010

COMPANY GROWTH 2005 - 2010

TOTAL AMS

IWAN FASHION

1.70% -0.04% 2005

5.48% 2.00% 2006

6.39% 2.30% 2007

7.27% 1.60% 2008

1.40% 2009 -4.27% 2010

NET PROFIT
7.39% 3.90% 7.91% 10.62%
MISSISSIPPI

-10.67%

16.97% 2.60% 3.19% 7.19% 1.70% 2005

CELCIUS

13.45%

10.68% 1.60% 2008 1.40% 0.82% 2009

9.24%

1.04% 1.90%

1.60%

2.40%

2.00% 2006

2005

2006

2007

2008

2009

2010

2.30% 2007

2010

-5.12% PROFIT BENCHMARK 1.70% 1.02% 2005 12.98% 2.80% 18.01% 0.90% 11.80% 2.00% 19.45%

10.19% 2.70% 2006

2007 PROFIT

2008

2009

2010

BENCHMARK

COMPANY GROWTH 2005 - 2010

TOTAL AMS

IWAN FASHION

INVENTORY TURNOVER
6.0 5.0 4.0 3.0 2.0 1.0 0.0

8.0 6.0 4.0 2.0 0.0 2005

MISSISSIPPI

2006

2007

2008

2009

2010

6.0 4.0 2.0 0.0 2005

CELCIUS

2006

2007

2008

2009

2010

2005

2006

2007

2008

2009

2010
6.0 4.0 2.0 0.0 2005 2006 2007 2008 2009 2010

TURNOVER

BENCHMARK

COMPANY GROWTH 2005 - 2010

TOTAL AMS

IWAN FASHION

Millions

40,000 20,000 0 2005 2006 2007 2008 2009 2010

INVENTORY
Millions
60,000 50,000 40,000 30,000 20,000 10,000 0
CELCIUS MISSISSIPPI

Millions

40,000 20,000 0 2005 2006 2007 2008 2009 2010

Millions

2005 2006 2007 2008 2009 2010

15,000 10,000 5,000 0 2005 2006 2007 2008 2009 2010

COMPANY GROWTH 2005 - 2010

TOTAL AMS

IWAN FASHION

2.30 2.01

2.07 1.48 1.01

2.00 1.35

2.29 1.92

GMROI
2.00 2.00 1.51 1.09 1.44

2005
MISSISSIPPI

2006

2007

2008

2009

2010

2.01

2.39 1.65 1.40 1.59

2.00 0.98

2005

2006

2007

2008

2009

2010

2005

2006

2007

2008

2009

2010

CELCIUS

GMROI
1.14

1.99

2.31 1.81 1.74

2.00 1.16

2005

2006

2007

2008

2009

2010

. PERCEPTION???

AN IMPRESSION PERSEPTION

"Courage is what it takes to stand up and speak. Courage is also what it takes to sit down and listen.
-- Sir Winston Churchill