ANNUAL REPORT 2012 We grow our core business to maximize shareholders’ value We maintain a clear focus on meeting our customers’ needs by delivering greater range of quality products and better shopping experience across all business formats. Vision Company 03 and Mission 04 Achievement 12 Company Financial Milestones 09 Highlights Letter from Board of Commissioners Operational Good Corporate 16 22 Review 32 Governance Matahari Audit Food Division 50 Committee Report Letter from Board of Directors Human Corporate 52 Resources 56 Social Responsibility 66 Matahari’s Management Presence In 54 Profile Indonesia 58 Corporate Information VISION MISSION 03 To be Consumers’ Most Preferred To consistently bring value fashion-right Retailer products and services that enhance the consumers’ quality of lifestyle COMPANY MILESTONES 1958 First store in Pasar Baru, Jakarta 1972 Pioneer of Departement Store concept in Indonesia 1980 Opening of first store outside Jakarta - Sinar Matahari Bogor 1992 IPO at Jakarta Stock Exchange and Surabaya Stock Exchange 1995 Core Business Expansion to Supermarket Operation. 1st Rights Issue - Rp 75 B 1996 Issuance of 5-year US$ 100 Million Bond. 2nd Rights Issue - Rp 226 B 1997 Multipolar became majority shareholder. 3rd Rights Issue - Rp 902 B 2000 Launch of Matahari Club Card (MCC) 2001 Settlement of 5-year US$ 100 Million Bond 2002 t/FX.BOBHFNFOU5FBNt$PSF#VTJOFTT3FTUSVDUVSJOH.BUBIBSJ%FQBSUFNFOU4UPSF .BUBIBSJ4VQFSNBSLFU 5JNF;POFt*OEFQFOEFOUBOEUSBOTQBSFOU#VTJOFTT6OJUT*TTVBODFPGZFBS0CMJHBTJ*3Q# 2003 t$POTPMJEBUJPO:FBSt$MPTVSFPG/POQSPGJUBCMFTUPSFTt3FGPDVTUPJOUFSOBMJOGSBTUSVDUVSF SFTPVSDFT company’s foundation 2004 t-BVODIPG)ZQFSNBSUt5PQ"TJB1BDJGJD3FUBJM"XBSE*OEPOFTJB*TTVBODFPGZFBS0CMJHBTJ**3Q 300 B & Syariah I Rp 150 B 2005 t4VDDFTTGVMM"HHSFTJWFFYQBOTJPO%FQBSUFNFOU4UPSFT ,JET,JET )ZQFSNBSUT $VU1SJDFT .BUBIBSJ 4VQFSNBSLFUt'JSTU.BUBIBSJ%FQBSUFNFOU4UPSFJO$IJOB t5PQ"TJB1BTJGJD3FUBJM"XBSE*OEPOFTJB 2006 t$POUJOVFEBHHSFTJWFFYQBOTJPO OFX.%4)ZQFSNBSU4QFDJBMUZ4UPSFT t5PQ"TJB1BTJGJD3FUBJM"XBSE*OEPOFTJBt*TTVBODFPGZFBS64. 6OTFDVSFE/PUFTt $PNQBOZ3BUJOHT# .PPEZT BOE# 4UBOEBSEBOE1PPST 2007 t$POUJOVFEBHHSFTJWFFYQBOTJPO OFX.%4)ZQFSNBSU4QFDJBMUZ4UPSFTSE%JTUSJCVUJPO$FOUFS JO&BTUFSO*OEPOFTJBt-BVODIPG1BSJTJBOOFXEFQBSUFNFOUTUPSFDPODFQUt5PQ"TJB1BDJGJD3FUBJM "XBSE#FTUPGUIF#FTUt5PQ"TJB1BDJGJD3FUBJM"XBSE*OEPOFTJBtUI3JHIUT*TTVF3Q5SJMMJPOt 4VDDFTTGVMMQBSUJDJQBUJPOJO3&*5QSPHSBNt$PNQBOZ3BUJOHT# 4UBOEBSE1PPST # .PPEZT BOE" 1&'*/%0 2008 t"HHSFTJWFFYQBOTJPO.%4 JODM/FX(FOFSBUJPO4UPSFT )ZQFSNBSUT 'PPENBSUT 5JNFT#PPLTUPSFTt"DIJFWFNFOUT501"TJB1BDJGJD3FUBJM"XBSE#FTUPG5IF#FTU 501 "TJB1BDJGJD3FUBJM"XBSE*OEPOFTJB 4FSWJDF2VBMJUZ(PME"XBSE&YDFMMFOU *OEPOFTJB.PTU"ENJSFE $PNQBOZt$PNQBOZ3BUJOHT# XJUI4UBCMF0VUMPPL 4UBOEBSE1PPST #XJUI4UBCMF0VUMPPL .PPEZT BOE" XJUI4UBCMF0VUMPPL 1&'*/%0 2009 t*TTVBODFPGZFBS64.ZFBS0CMJHBTJ***3Q#ZFBS4ZBSJBI**3Q#t$PNQBOZ3BUJOHT # XJUI4UBCMF0VUMPPL 4UBOEBSE1PPST #XJUI4UBCMF0VUMPPL .PPEZT BOE" XJUI4UBCMF0VUMPPL 1&'*/%0 t"DIJFWFNFOUt*40$FSUJGJDBUJPOGPS'PPE4BGFUZBOE.BOBHFNFOU4ZTUFNt 5PQ"TJB1BDJGJD3FUBJM"XBSE#FTUPGUIF#FTUt5PQ"TJB1BDJGJD3FUBJM"XBSE*OEPOFTJBt '"13"#FTU.PEFSO3FUBJMFS"TJB1BDJGJD"XBSEt5PQ#SBOE"XBSECZ'SPOUJFS(SPVQt*OEPOFTJBT .PTU"ENJSFE$PNQBOJFT"XBSECZ#VTJOFTT8FFLBOE'SPOUJFS(SPVQt4FSWJDF2VBMJUZ"XBSE&YDFMMFOU Award by Marketing Magazine. 2010 t.%4EJWFTUNFOUWBMVFEBU3QUSJMMJPO&BSMZ3FEFNQUJPOPG64.JMMJPO#POE3QUSJMMJPOJOUFSJNTQFDJBM dividends. t$PNQBOZ3BUJOHT# XJUI4UBCMF0VUMPPL 4UBOEBSE1PPST #XJUI4UBCMF0VUMPPL .PPEZT BOE" XJUI4UBCMF0VUMPPL 1&'*/%0 t"DIJFWFNFOU5PQ"TJB1BDJGJD3FUBJM"XBSEi)BMMPG'BNFw 5PQ"TJB1BDJGJD3FUBJM"XBSEo*OEPOFTJB461&3#3"/%"XBSE 2011 t3BUJOHT" SBUJOHXJUI4UBCMF0VUMPPLGSPN1&'*/%0# SBUJOHXJUI4UBCMF0VUMPPLGSPN4UBOEBSE1PPST #SBUJOHXJUI/FHBUJWF0VUMPPLGSPN.PPEZTt"DIJFWFNFOUT3FUBJM"TJB5PQ"XBSETGPSUIFUI DPOTFDVUJWFZFBSTGSPN3FUBJM"TJB &VSPNPOJUPS*OUFSOBUJPOBMBOE,1.(TU3BOLJOHPG48"*OEPOFTJB#FTU 1VCMJD$PNQBOJFTGPS3FUBJMJOH$BUFHPSZ 3FDPSECSFBLJOHGPSUIFPQFOJOHPG)ZQFSNBSUTUPSFT 2012 t#SBUJOHXJUI4UBCMF0VUMPPLGSPN.PPEZT" XJUI4UBCMF0VUMPPLGSPN1&'*/%0# XJUI4UBCMF0VUMPPL GSPN4UBOEBSE1PPSTt"DIJFWFNFOUT3FUBJM"TJB5PQ"XBSETGSPN3FUBJM"TJB &VSPNPOJUPS *OUFSOBUJPOBM ,1.(4VQFS#SBOET"XBSEGSPN4VQFS#SBOET*OEPOFTJB4PDJBM.FEJB"DIJFWFNFOU"XBSE GSPN.BKBMBI.BSLFUJOH1VCMJDBUJPO4PMP#FTU#SBOE*OEFY"XBSEGSPN4PMP1PT.FEJB1VCMJTIJOHBOE &YDFMMFOU#SBOE"XBSEGSPN4PMP574UBUJPOOFX)ZQFSNBSUTUPSFTPQFOJOH PT Matahari Putra Prima Tbk. | Annual Report 2012 04 We are a prominent FMCG modern retailer with global standard of best practices. 2012 Total Revenues Net Earning After Tax Hypermart’s CAGR reached Rp 10.8 trillion, reached Rp 238.5 billion, Growth since 2004 or increased or increased increased )FSSZ4FOKBZB71'JOBODF"DDPVOUJOH.'% 4FOKBZB)POHHP-JOBOEP4SBUFHJD1MBO#VTJOFTT"OBMZTU %JHJUBM$IBOOFM%JW)FBE.'% -JFN7BMFOUJOVT71/PO'PPE.'% 4BGSJEB,BSUJOJ4JIPNCJOH(.)ZQFSNBSU3FHJPOBM 3. Eka Supriadi -- VP Logistic MFD "OUP4VXBSUPOP714BMFT%FWFMPQNFOU(SPDFSZ/PO'PPE.'% 0OH5IJBO:PF71'SFTI.'% 4BOOZ)BSUPOP71(SPDFSZ.'% 5VOHHVM4JOBHB71)ZQFSNBSU0QFSBUJPO 0LUBWJBOVT,VTVNB(.$VTUPNFS-PZBMUZ.'% 7JODFOUJVT4BSJZP(.)ZQFSNBSU3FHJPOBM :PFMJVT4BQVUSB(..BSLFUJOH1SPNPUJPO.'% PT Matahari Putra Prima Tbk. | Annual Report 2012 05 1 2 3 4 5 6 7 8 9 10 11 12 PT Matahari Putra Prima Tbk. | Annual Report 2012 /PUIJOHNPSFQSFDJPVT than a happy face of our customer 07 COMPANY ACHIEVEMENT 2012 Total Revenue /FU&BSOJOHT )ZQFSNBSUT$"(3 After Tax Growth In millions Rp Total Revenues /FU&BSOJOHT"GUFS5BY Total Equity - net 10,868,164 238,448 3,845,754 Operating Income Total Asset 312,867 8,225,206 "$)*&7&.&/5 Superbrands Indonesia’s Choice Anugerah Solo Best Brand Index Retail Asia Pacific Top 500 2012 2012 2012 Excellent Brand Award Social Media Award 2012 2012 PT Matahari Putra Prima Tbk. | Annual Report 2012 09 '*/"/$*"- HIGHLIGHTS $0.1"/: SHAREHOLDING STRUCTURE (as of 31 December 2012) 338,419,625 2,701,386,108 198,584,000 2,338,157,067 PT STAR PACIFIC Tbk. PT MULTIPOLAR Tbk. 53&"463:4)"3&4 .*/03*5: 4)"3&)0-%&34 NOTE : Figures in parentheses represents shareholding structure ownership including treasury shares 4)"3&13*$& PERFORMANCE (as of 31 December 2012) RP 2,000 2008 2009 2010 2011 2012 Highest 690 1,050 1,830 1,850 1,630 1,800 Lowest 500 510 910 840 870 1,600 Average 669 749 1,162 1,259 1,117 1,400 1,200 1,000 800 600 400 200 2008 2009 2010 2011 2012 PT Matahari Putra Prima Tbk. | Annual Report 2012 %*7*%&/%HISTORY (for the last 5 years) Fiscal Net Profit Dividend/Share Number of Total Cash Dividend Dividend Payout Ratio Year (in mio Rp) (Rp) Shares (in mio Rp) (%) 2006 160,500 10.4 4,711,922,000 49,004 30.5% 2007 180,200 11.5 4,711,922,000 54,187 30.1% 2009 300,035 16 4,721,073,575 75,537 25.2% 16 834,755,115 13,356 (1) 4.5% 2010 5,800,640 180 5,555,812,690 1,000,046 (2) 17.2% 180 5,559,284,239 1,000,671 (3) 17.3% 180 5,576,546,800 1,003,778 (4) 17.3% 300 5,576,546,800 1,672,964 (5) 28.8% 2011 105,037 6 5,576,546,800 32,268 30.70% (1) Additional warrant exercise from 31 December 2009 until 10 June 2010 (2) Interim Dividend I (paid on May 12, 2010) (3) Interim Dividend II (paid on June 28, 2010) (4) Interim Dividend III (paid on January 10, 2011) (5) Final Dividend IV (paid on March 22, 2011) HISTORY0'4)"3&-*45*/( Description Listing Date at BEI Total Shares Initial Public Offering 15 December 1992 8,700,000 Company Listing 15 December 1992 33,366,320 Conversion of Convertible Bond 19 July 1993 926,457 Conversion of Convertible Bond 6 August 1993 1,727,628 Conversion of Convertible Bond 13 August 1993 824,250 Conversion of Convertible Bond 13 August 1993 3,297 Conversion of Convertible Bond 25 August 1993 1,648,500 Conversion of Convertible Bond 02 September 1993 3,297 Conversion of Convertible Bond 13 September 1993 3,297 Conversion of Convertible Bond 23 September 1993 3,297 Conversion of Convertible Bond 24 September 1993 2,884,875 Conversion of Convertible Bond 23 March 1994 3,297 Conversion of Convertible Bond 30 March 1994 3,297 Conversion of Convertible Bond 16 May 1994 9,891 Bonus Share 15 July 1994 100,215,406 Conversion of Convertible Bond 17 October 1994 9,891 Rights Issue I 30 June 1995 75,166,500 Rights Issue II 10 October 1996 225,499,500 Stock Split 15 September 1997 450,999,000 Rights Issue III 03 November 1997 1,803,996,000 Rights Issue IV 11 January 2007 2,005,928,000 Warrant Exercise September 2009 3,181,000 Warrant Exercise October 2009 5,970,375 Warrant Exercise December 2009 200 Warrant Exercise January 2010 36,532,200 Warrant Exercise February 2010 131 Warrant Exercise March 2010 24,775,000 Warrant Exercise April 2010 754,259,092 Warrant Exercise May 2010 19,185,192 Warrant Exercise June 2010 12,469,100 Warrant Exercise July 2010 8,252,510 Total Listed Shares 5,576,546,800 * As of November 27, 2012, the Company’s share nominal value has been changed from Rp 500/share to Rp 50/share. '*/"/$*"-HIGLIGHTS (in Billions Rp) 2010* 2011 2012 Consolidated Statements of Comprehensive Income Net Sales 8,545 8,909 10,868 Gross Profit 1,867 1,558 1,897 Profit For The Year 5,819 120 239 Profit Attributable To: Owners of The Parent 5,800 105 220 Non-controlling Interest 19 15 19 Total Comprehensive Income For The Year 5,906 120 238 Total Comprehensive Income Attributable To: Owners of The Parent 5,887 105 219 Non-controlling Interest 19 15 19 Earning per share (in full Rp) 1,122 20 41 Consolidated Statements of Financial Position Total Assets 11,421 10,308 8,225 Total Liabilities 4,227 4,625 4,379 Total Equity 7,194 5,683 3,846 Financial Ratios Profit For The Year / Total Assets (%) 51.0 1.2 2.9 Profit For The Year / Total Equity (%) 80.9 2.1 6.2 Profit For The Year /