BUSINESS ACTIVITIES AND BUSINESS TRENDS AND PROSPECTS

GENERAL OVERVIEW

PT Multitrend Indo TBK (MTI) is a division of the Kanmo Group. It holds the licenses for various retail brands in the baby and kids space and also has a distribution division servicing other retailers through a mix of owned brands as well as licensed brands. A strong omnichannel focus underpins the company’s efforts, with multiple brand websites, 30+ marketplace stores, a strong own retail network and as well as a 3rd party distribution network.  Founded by Hitesh and Manoj Bharwani, in 2005, with its first store in Mall Taman Anggrek, the company now operates 126 retail stores featuring well known brands including Mothercare, ELC, Gingersnaps, Justice, The Children’s Place, Wilio as well as plays in travel retail at Soekarno Hatta Airport Terminal 3. MTI’s distribution division handles a diverse portfolio of over 21 global, local and owned brands. The company’s footprint now extends to over 100 cities, and 35.000+ distribution points in Indonesia.  MTI remains dedicated to its vision of “Inspiring and Enriching Life’s Journeys”. This commitment extends not just to customers of its diverse brands but critically to employees, fostering a positive work environment and driving empowerment. The company, as part of the overall Kanmo Group has recently earned the distinguished honor of being awarded HR Asia's prestigious "Best Companies To Work For in Asia" accolade in 2023.

Our Vision

Inspiring and enriching life's journey (Inspiring and Enriching Life's Journey).

Our Mission

1. Care for customers

Commitment to retain internal and external customers, do things that meet customer wants and needs through suggestions, ideas, support, and a good work ethic. To understand and identify customer needs, and provide them with the best.

2. Pull together

To operate as a team where different functions work to help each other to win and are united by a common goal. Share understanding and cooperation in groups. Having a broad and strong network, respecting differences, and looking for opportunities to work together in overcoming challenges.

3. Make Business Stronger

Always looking for space and how to be more, looking for opportunities to make things better. Explore new ideas, look for opportunities to make them happen, and challenge the establishment. It's not about doing more, but doing things better.

4. Own and Complete

Everyone's ability to be responsible, find solutions and work on them to completion. It's about taking leadership yourself, making it happen, and not stopping until it's done.

As a leading baby and children's clothing retail company, the Company is engaged in 3 (three) main areas, including: (i) offline retail; (ii) online retail (iii) distribution;Information regarding the 3 (three) main areas of the Company are as follows:

Offline Retail

The Company acts as Indonesia's exclusive licensee for global baby and children's brands such as Mothercare, ELC, Gingersnaps, Justice and Wilio whereby the Company obtains products from these principals and sells them in the Company's retail stores in various shopping centers.

Brand	Product Category
	Baby and children clothing and equipment
	Fashion for girls aged 10-15
	Educational toys ages 0-5
	Fashion for boys/girls in the age range 1-12 yrs
	Fashion age 0-5
	Branded goods at Soekarno Hatta airport Terminal 3
	Fashion for boys/girls ages 10-15
Kanmo Airport	Accessories store for travel needs

Online Retail

To strengthen the Company's customer reach, the Company has increased its presence online through product sales on websites and ecommerce platforms in Indonesia. This way customers can choose to go to a store or online experience based on their preferences.

Distribution

In addition to several brands that the Company sells in its own stores, the Company sells its principal and own products at retail partners through its subsidiary, KMG. These brands include the following: Banz, HEAD, Jazwarez, J&J, MICRO, NUBY, Playgro, TY Brand, YAMATOYA, ZOGGS, PT Actavis Indonesia

MARKETING

The Company's sales are carried out through online and offline retail which cover major cities throughout Indonesia. The following are the Company's marketing and distribution areas:

AWARDS

Following are the awards received by the Company in the last few years until this Prospectus was published:

COMPANY BUSINESS PROSPECTS

Indonesia's Economic Growth and Population Demographics

National economic growth in the third quarter of 2022 was recorded at 5.72% (yoy). The strengthening of the economic recovery was demonstrated by economic growth in Q3 2022 compared to Q2 2022 of 1.8% (qtq). With this growth rate, the cumulative level of national GDP until the third quarter of 2022 is 6.6% above the cumulative levels I-III 2019. On the expenditure side, the growth rate of household consumption is still relatively high at 5.4% (yoy). This is in line with several indicators of public consumption, including the average Real Sales Index which grew 5.5% in the third quarter of 2022. Indonesia's trade balance performance is also still strong. Exports continue to record high growth, as well as imports to grow to support the supply needs of domestic production. Exports in real terms grew 21.6% (yoy) in the third quarter of 2022, while imports grew 23.0% (yoy). In terms of business sector, economic growth was driven by positive growth in all sectors. This shows that the wheels of the economy are moving again almost evenly in all economic sectors.

Source: https://www.kemenkeu.go.id/formasi-public/publikasi/berita-utama/Perekonomian-Indonesia-Triwulan-III-2022-5,7

Baby and Child Industry in Indonesia

According to Euromonitor, while the economic pressure created by the COVID-19 pandemic is weighing on consumer spending, it has not affected children's clothing as much as men's or women's clothing as children's clothing is widely considered more important. Indonesia's Economic Growth and Population Demographics Purchasing is considered unavoidable for parents of babies, babies and young children, who grow out of their clothes very quickly. The global baby clothing market size was USD 62.04 billion in 2019 and is projected to reach USD 82.54 billion by 2027, showing a CAGR of 4.2% during the forecast period. The growing influence of social media and changing fashion trends are having a strong impact on the children's clothing industry. Modern day parents are interested in clothing choices for their children and thus driving the demand for fashionable clothes. The development of medical science has resulted in a reduction in infant mortality, which in turn greatly supports product consumption. For example, according to the report, World Mortality 2019' from the Department of Economic and Social Affairs of the United Nations Secretariat, the infant mortality rate has decreased by 54% from 1994 to 2019, which is approximately 28 deaths in under one year.