public expose - mba) i...indonesian history and culture. • starbucks “water for change” in...
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Public Expose Presentation by Anthony Cottan
President Director
Jakarta, August 27th 2020
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MBA Today Overview (End June 2020)
REtAil StoRES EmPloyEESF&B BRAnDSPREmium
CitiES
liStED on inDonESiA
StoCk ExChAngE
A mEmBER oF mAP gRouPStRAtEgiC
PARtnERShiP with gEnERAl AtlAntiC
566 6,3297
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2019 Financial
Highlights
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Financial Highlights 2019
Revenue
EBIT
EBITDA
Net Prof it
3.09 trillion
223.4 billion
457.2 billion
165.7 billion
+ 20%
+ 38%
+ 29%
+ 50%
growth vs ly
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Growth Summary
* as restated - to include acquisition of ownership interest in PT Sari Food Lestari (Paul) in Jan 2019
** In 2020, Group has adopted PSAK 73, Leases. Normalized income is without the impact of PSAK 73
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Consolidated Income Statement
* as restated - to include acquisition of ownership interest in PT Sari Food Lestari (Paul) in Jan 2019
** In 2020, Group has adopted PSAK 73, Leases. Normalized income is without the impact of PSAK 73
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Segmental Sales Contribution
* as restated - to include acquisition of ownership interest in PT Sari Food Lestari (Paul) in Jan 2019
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Balance Sheet Consolidated
* as restated - to include acquisition of ownership interest in PT Sari Food Lestari (Paul) in Jan 2019
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1,056,739
1,389,125
1,744,618
2,102,609
2,576,852
3,094,880
37.33%
31.45%
25.59%
20.52%
22.55%
20.10%
-50,000
450,000
950,000
1,450,000
1,950,000
2,450,000
2,950,000
3,450,000
2014* 2015* 2016* 2017* 2018* 2019A
(In M
illio
n Ru
piah
)
Sales Growth (2014 - 2019)
* as restated - to include acquisition of ownership interest in PT Sari Food Lestari (Paul) in Jan 2019
CAgR: 23.98%
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52,946
77,360
114,720
91,828
110,688
165,726
167.35%
46.11%
48.29%
-19.95%
20.54%
49.72%
(5,000)
15,000
35,000
55,000
75,000
95,000
115,000
135,000
155,000
175,000
2014* 2015* 2016* 2017* 2018* 2019A
(In M
illio
n Ru
piah
)Net Prof it Growth (2014 - 2019)
* as restated - to include acquisition of ownership interest in PT Sari Food Lestari (Paul) in Jan 2019
CAgR: 25.64%
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Number Of Stores (2017 - Jun 2020)
* as restated - to include acquisition of ownership interest in PT Sari Food Lestari (Paul) in Jan 2019
402
465
541 566
75
92
119 125
-
50
100
150
200
250
300
350
400
450
500
550
600
2017* 2018* 2019 1H 20 Number of Stores Sqm (in thousand sqm)
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2019 Marketing Highlights
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Store Opening 2019new store opening : 81 new stores (76 net store addition)
Starbucks : 57Genki Sushi : 6Krispy Kreme : 8Pizza Marzano : 3Cold Stone Creamery : 4Godiva : 2The Mill : 1
End 2019 : 541 stores(including 10 Free Standing Starbucks stores)
Penetrated 2 new cities
• Labuan Bajo
• Gresik
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Opening of Starbucks Dewata - Biggest in South East Asia
Size: 1,850 sqm
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Opening of First MRT StoreStarbucks mRt Bundaran hi
StARBuCkS 400th StoRE
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Starbucks Rewards Loyalty Program
Acquired over 258,000 new members
End 2019 : 1.68 million members - accounted for 27% of Starbucks revenue in 2019
Aug 2020 : 1.71 million members
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Greener Way of Operating
Expansion of our “greener nusantara” movement to Bandung, lombok and labuan Bajo
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Sustainability Initiatives
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Sustainability Initiatives• Starbucks “Rebuilding lombok” with habitat for humanity. Mobilized 500
Partners (Employees) to support rebuilding efforts after earthquake in Lombok.
• Starbucks “Creative youth Entrepreneurship” program for vocational students in 4 cities.
• Starbucks “Ayo ke museum”, annual program to raise public interest in Indonesian history and culture.
• Starbucks “water for Change” in partnership with Planet water Foundation – build water towers to provide access to clean water across 10 communities.
• Cooperation with love Pink indonesia to increase breast cancer awareness.
• Starbucks “Drop of hope”, annual donation of uniform and stationeries to NGOs.
• Covid-19 : Delivered over 40,000 free F&B packages to 46 hospitals and 22 check points in 25 cities.
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Starbucks 17th Anniversary Collection - indonesian Folklore theme
Starbucks 17th Anniversary Exemplifying“Glocalization
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First Starbucks Community StoreStarbucks opens First Community Store in indonesia
Starbucks tanah AbangThe store will support two local NGOs to create educational opportunities for children in Jakarta’s Tanah Abang neighbourhood
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Krispy Kreme - New Store Formatlaunch of krispy kreme Smart kiosk
The first of its kind with in-store digital capabilities
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Digital InitiativesRole of digital initiatives in Starbucks: A Seamless customer Journey.....
E-Commerce
• On 27 Apr’20 we launched official store in Lazada
• Focusing on merchandise products• Contribution to merchandise sales
• Customer order thru WhatsApp with multiple pick-up options
• Pilot in 5 stores
• Converting all physical voucher into electronic
• Opening a new channel of sales by distributing the voucher to B2B and B2C
• Target Q3-2020
Seamless order through whatsApp
Future Projects
Current Starbucks Digital Presence
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Starbucks Digital Menu Board
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Online Delivery & Financial Technology Expansion of Fintech partnership & collaboration
with Delivery aggregators
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2020 & Beyond: Post Covid-19 Strategy
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Post Covid-19: Seizing Opportunities
...and in 2030economy in the world
members of the consuming class
skilled workers needed
market opportunity in consumer services, agriculture and fisheries, resources, and education
of the population in cities producing of GDP
7th-largest135 million
113 million$1.8 trillion
71% 86%
inDonESiA: BeyOnD The Crisis
inDonESiA: F&B POTenTiAL wiLL remAin DurABLe.....
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2020 & Beyond: Post Covid-19 Strategy
Customers Behavior• Location & availability of goods are key factors why customers changed stores.• Locations with closer proximity are important for convenience & safety. • Location is critical to accommodate delivery coverage for home orders.
Store type Preference.• Drive-thru & curbside pickup offer ideal solutions for safer & quicker customer interactions
(Qsr magazine) • Freestanding store (Drive Thru/curbside pick up) have performed significantly better during
pandemic as it is perceived as a safer channel
Competitive landscape• maintain positioning as a market leader while competitors re-strategize for survival.• Take over competitors’ prime locations and expanding further in new area with location
technology (GapMap) based software to gain dominance in real estate.
Real Estate tenant market • Opportunity on real estate market oversupply to secure affordability for long-term growth
Stores vs Digital vs hybrid
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2020 & Beyond: Post Covid-19 Strategy“Rightsizing”
overall F&B market will continue to grow but Covid-19 will alter customer behaviour• new strategic initiatives like Digital, Drive-Thru, etc., call for different expertise.
• A need to streamline processes for highest efficiency & cost effectiveness, less bureaucracy from group
• shift in consumer behaviours demands a faster organizational response. Flatter.
• resolve other organization issues amid crisis
• use of third parties and one-off project consultants
We need to support the development of organization to drive all these changes.
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2020 & Beyond: Post Covid-19 StrategyPrudent expansion
Store optimisation - store rebuilds and adjustment to store areas
Beijing express store, just 40m2no seating just order by app and pick up
PhySiCAl & ViRtuAl
= the hybrid
Curbside pick up, smaller footprint…
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2020 & Beyond: Post Covid-19 Strategy
Enhanced in-store digital ordering capabilities
• New“experiential-first”storeformat• SmartKiosks• KrispyKremeHarapanJaya,Bekasi
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2020 & Beyond: Post Covid-19 Strategy
Future Projects of Starbucks Rewards
EnhAnCED loyAlty PRogRAmSDigitAl Revolution that Starbucks calls the “4th Place”
mobile order & Pay• mobility, Convenience and Cashless Lifestyle.• Customer Database & Big Data Analytics on sBuX Platform• Target Q4-2020
E-Vouchers/E-gifting• monetary / Gift-Vouchers distributions via sr apps.• Fuller members experience with friends & families.• Target Q4-2020
Cashless Store• Piloting a store (Tokopedia Tower) with only cashless transaction.
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Starbucks Strategic Priorities
• Focus on Drive Thru store format as the only coffee chain with this concept
• Taking advantage of wFh trend by growing presence in new cluster of residential areas
• Benefit from larger site selection availability with affordable rental for long term
• Opportunity to redefine new store concept as a “3rd or 4th place” on “new normal”
• east indonesia market presence inline with government delayed PON in Papua Oct 2021
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Growth Brands Strategic Priorities
• Opportunity on increase site vacancy due to competitors’ downsizings’ or out of business
• Leverage on good relationship with Big Developers
• Benefit from crisis / disruption to gain market share
• showcase different store type especially for Genki Sushi and Pizza Marzano
• Capturing residential cluster with stand alone store in Jabodetabek
• entering new market outside Jakarta
• new normal concept store to accommodate social distancing, delivery and pick up service more
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thank you