MATERIAL DISCUSSION PT Jasa Armada Indonesia, Tbk.

Transcription

1 MATERIAL DISCUSSION PT Jasa Armada Indonesia, Tbk. December, 2018

2 Table of Contents Section Title Page 1 Company Overview 3 2 Business Process & Model 6 3 Business Development 13 4 Operational & Financial Highlights 20 5 Key Investment Highlights 25 1

3 Section 1 Company Overview 2

4 Shareholders and Group Structure Shareholders Pelindo II (IPC) Group Pemerintah Republik Indonesia % PT Pelabuhan Indonesia II (Persero) Koperasi Pegawai Maritim 1.00% 99.00% Public 23% 76.89% PT Multi Terminal Indonesia 0.11% PT Jasa Armada Indonesia Tbk 3

5 Key Facilities Pelabuhan Jambi Pelabuhan Teluk Bayur Sumatera Pelabuhan Pangkal Balam Kalimantan Pelabuhan Palembang Pelabuhan Pontianak 74 Vessels (Tugboat, Pilot boat, Mooring and Bulk Carrier) 11 Pelabuhan Bengkulu Java Pelabuhan Tanjung Pandan Operational offices Pelabuhan Panjang Pelabuhan Banten Pelabuhan Tanjung Priok Pelabuhan Cirebon 879 Professional Employees 4

6 Section 2 Business Process & Model 5

7 Line of Business Pilotage and Towage JAI provides pilotage & towage services to ensure smooth and safe berthing for vessels entering and departing Seaports, Inland Waterways, and Oil& Gas Offshore Ship-to-Ship (STS) Activities. Based on Ministry of Transportation (MoT) regulations which complies with international regulations,allvesselsabove500gtaresubjecttopilotageandtowage,inwhichmandated port operators and STS operators has to provide such activity under Indonesian maritime law. Pilotage is essentialy an activity under State Authority, in respective port operators as state representatives. which delegated and mandated to Pilot on Board Vessel Arrival Piloting& Towing IN Berthing Vessel Departure Piloting& Towing OUT Pilotage & Towage Flow Chart Loading& Unloading Pilot off Board 6

8 Use of Services Guardian of Commodity, Trade& Environment Pilotage& Towage for Container Vessels Pilotage& Towage for Bulk & Liquid Cargos Pilotage& Towage for Inland Wateways Pilotage& Towage for Offshore STS Piloting and towing are essentials for maneuvering ships through dangerous or congested waters, such as harbors, river mouths or offshore transshipments. Without pilot and allportsandoil transshipment exposed risks. towing services, & gas offshore would be with unacceptable 7

9 Business Segments Public Port Private Terminal/TUKS Inland Waterways Tersus/STS Cargo Shipping 8

10 Pricing Policies IPC Public Ports Pilotage& Towage tariffs are similar to how taxi fares are charge: Fixed floor charge, similar to taxi metre starts; Variable tariffs based on he category of ships and their tonnage multiplied by the hours of service on multiples of 30 minutes. International vessels are charged in USD. The price is around 10% higher than in PSA Singapore. Local vessels are charged in IDR, the price is much lower than international vessels. Upfront payment with low risk to default. Tariff revision every 2 years. JAI and INSA(Indonesia National decide tariff incremental, approved by MoT. Shipwoners Association) Domestic Vessels, 29.58% International Vessels, 70.42% 9

11 Pricing Policies Private Terminals Pilotage& Towage tariff for Private Terminals follows Port Terminal tariff structure. Inland Waterways Pilotage& Towage only required upon Municipal regulations in special locations due to dangerous or congested waters. Tariff structure follows Port Terminal, but historically round 300% higher. STS Pilotage& Towage tariffs are charged based on: Towage Rental: calculated on USD x HP x 360 days, paid by O&G companies (STS operator); Service Charge: on Ship Call basis, paid by the Shippers. 10

12 Fleet Maintenance Fleet Inspection& Upgrading Afterspunoff,in2015JAIhiredThomeConsultingtoinspectandupgradethefleet,from previous grade 2.4 (48% from highest grade 5) to become currently grade 3.6 (72%). Average vessel age is 8.5 years, relatively young for 20 years lifetime. Excellent Maintenance System Trained by Thome Consulting, JAI executes daily maintenance for engine and lubricant, body and painting by the crews, supervised by Technical Superintendents, using AMOS IT maintenance management. Cost Effectiveness: Lubricants and Painting with vendor guarantee to replace at their own cost shall the spareparts lifetime not exceeding the guaranteed duration. Inventories are provided just in time. Docking Comply with class & statutory regulations, docking every 2.5 years and checked by Class Surveyors. Under Water Inspection in Lieu of Dry Docking(UWILD) An internationally accepted alternative to dry-docking inspection surveys, with sub-surface inspection to reduce downtime. 11

13 Section 3 Business Development 12

14 New Customer Service : Pilotage, Towage and STS Operations Customer : Coal Miners Along Musi River Location : Ambang Luar Sungai Musi, Palembang Start Operation : October 2018 Volume Target : ± 14 Vessels per month. 13

15 New Customer Service Customer Location Start Operation Volume Target : Pilotage, Towage and STS Operations : ExxonMobil Oil Terminal : Lamongan, Jawa Timur : On Progress : ± 8-10 Domestic vessels and 2-4 Foreign vessels per month. 14

16 Investment Progress : Keel Laying on 27 November 2018 with PT Citra Shipyard Item : 4 units Tugboat 2 x 2200 HP type Azimuth Stern Drive (ASD) Contract Value : IDR 223,85 Billion. 15

17 Section 4 Operational & Financial Highlights 16

18 Operational Highlights No Type of Fleet Owned Leased Total Fleet 1 Tug Boat 1200 HP Tug Boat 2400 HP Tug Boat 3200 HP Pilot Boat Mooring Boat Bulk Carrier Total

19 Operational Highlights Time & GT (Towage) 200, , , , , , , , ,701 99, ,000 50, M17 9M18 Time GT (in'0000) HSD average price (Rp/liter) 12,000 9,591 10,000 8,000 7,372 7,253 6,075 6,000 4,000 2,000 Utilization Rate (Towage) M17 9M18 Utilization rate (%) Tonnage Shipping and Freight (IDR) 250, , , , , , , ,000 97,190 50, , M17 9M M17 9M18 HSD Tonnage Freight (IDR) 18

20 Financial Highlights Financial Position (IDR billion) Balance sheet (Rp bn) M18 Assets 598 1,356 1,277 Liabilities Equity 598 1,356 1,059 Current ratio Net gearing Net cash Net cash Net cash Net debt to EBITDA 1.2 Net cash Net cash Operating Profit (IDR billion) & Operating Margin 23.0% 22.0% 21.0% 20.0% 19.0% 18.0% % 22.4% % 20.1% M17 9M Revenues (IDR billion) 1, Revenues Towage Pilotage Others M18 EBITDA (IDR billion) & EBITDA Margin % % 24.0% % % % 21.0% % 20.2% 20.0% 19.0% % M17 9M18 Note: Revenue during 2017 decreased compared to 2016 due to Pelindo II policy to fully comply government regulation, of which the government has delegated pilotage services to Pelindo II for Pelindo II territories, therefore pilotage revenue 2017 and onward is accounted as Pelindo II s revenue. Although JAI s revenue is declined, its EBITDA Margin and Net Profit Margin increased because pilotage tariffs in public ports (Pelindo II) are considered as public service obligations. In 2018 revenue sharing from Pelindo II to JAI is 85% compared to 99% in As of January 2018, PNBP obligation belongs to Pelindo II. 19 Operating profit (IDR bn) Operating margin EBITDA EBITDA margin

21 Financial Highlights Revenue Contribution per Segment Revenue Contribution per Area 4.4% 7.7% Jasa Pelayanan Kapal Freight services Fleet management 8% 12% 7% 6% 6% 13% 48% Tanjung Priok Palembang Kantor Pusat Banten Panjang Teluk Bayur Cabang Lain 87.8% In 9M18, Revenue is dominated by ship service segment in the form of towage service of 89%. Nevertheless, the Company is developing a new business segment of which sea freight service and ship management that contributes of some 16% to total revenue. Port of TanjungPriokcontributes 48% of total revenue. 61% of JAI s total revenue is contributed by 2 major ports which are TanjungPriokand Palembang. And the new business segment which is sea freight service contributes 12% of total revenue. 20

22 Revenue & Cost Structure I/S Structure Revenue Structure 100% 67% 13% 17% Net Profit GA Expense COGS Net Revenue COGS Structure SG&A Structure 21

23 Section 4 Key Investment Highlights 22

24 Key Investment Highlights Special Delegation from State Authority 1 Experienced Management Team 7 2 Captive & Prepaid Customers STS & Shipping Market Acquisition to Create More Value 6 3 The Largest, Most Reliable and Most Profitable Pilotage & Towage Company Solid Growth, infully Funded Port Development 5 4 Capex Light with Clean Balance Sheet 23

25 1. Special Delegation from State Authority Ministry of Transportation Pilotage Regulations Allvessels500GT andabove enteringanddepartingbup aresubjecttopilotageand towage. Port & STS Operator License(BUP) Public Ports: Onlygrantedto4 SOEs (PelindoI IV),operatedin separate territories Private Terminals(TUKS): Granted to some companies that have sea/river terminals, for private use only STSOperators(Tersus): Oil& Gas Offshore Ship-to- Ship Operators Note: BUP excludes Pilotage Delegation Pilotage Delegations Public Ports: Onlygrantedto4 SOEs (PelindoI IV).JAI isthe sole operator in IPC jurisdictions. PrivateTerminals(TUKS): Grantedto 3SOE subs:jai; KBS (doesnothavepilotsnor tugs);ptba s (nolonger operates).alsograntedtovery few terminal owners. STS(Tersus): JAI istheonlycompanythat has pilotage delegation in STS territories 24

26 2. Captive and Prepaid Customers IPC Public Ports are the only choices for the industries nearby in strategic locations. JAI is the only pilot and towage vessel provider in all Public Ports under IPC jurisdictions. IPC requires allcustomersto payservicepricein advancewithlowriskto default. 25

27 3. The Largest, Most Reliable & Most Profitable in The Business TheLargestFleet in The Business The Most Experienced 74 Vessels With74fleetsunder managementto support11 IPC ports,more than50tuksand its STS businesses. Relatively young vessels age of 8.5 yearto supportfuture expansion The Most Prominent and Acknowledged Marine Service Company TheCompany has beengrantedwith SafetyManagement certifications. 57 Years Since the commencementofits service in 1960, JAI has become the oldest existing pilotage and towage service provider in Indonesia. Advanced Protection& Indemnity Coverage 500 Maximum coverage, including third party assets coverage. USD Million The Most Profitable Pilotage& Towage Company 17% NPM JAI is the most profitable pilotage& towage company in Indonesia. 26

28 4. Capex Light with Clean Balance Sheet JAIisin netcashpositionwith afleetof74vessels.itis operatingat49%utilizationasof 9M18, with utilisation ceiling at 65% and sufficient for next 3 years. OperatingOffices inipcports in 11 Strategic Locations Maximizing Fleet Utilization, Minimizing Costs Private Terminals Inland Waterways Offshore STS 27

29 5. Captive Growth In Fully Funded Port Development IPC plans to develop new ports, declared as National Strategic Projects by Presidential Decrees. With these projects, IPC will double its capacity in next 5 years. Total project cost is USD 1.6B,fullyfunded.JAI willbe thesolepilot&towageproviderinthenewports. New Priok, Jakarta Cikarang Bekasi Laut Port of Kijing, West Kalimantan Port of Sorong 28

30 6. STS Market Acquisition to Create More Value On May 23rd, 2017, MoT has declared to enforce pilotage compiance in all port and STS activities. Currently, JAI is the only operator that has license in those Extraordinaty Pilotage Territories. JAI is committed to support MoT and SKK Migas (MoE as theownerofoil&gas resources) to enforce compliance with MoT pilotage regulations. Through this law enforcement scheme, JAI aims to increase market share from currently 10% to become 50% in next 3years. 29

31 Thank You PT Jasa Armada Indonesia, Tbk