CLSA AsiaUSA F orum 2 9 November 2011

Transcription

1 CLSA AsiaUSA F orum 2 9 November 2011 Top 10 Best Performing companies in Indonesia Best Overall for Corporate Governance in Indonesia

2 Key Investment Highlights Strong Future Growth Largest Private sector Petroleum distributor of Unsubsidised fuel in Indonesia Robust Financial Performance Largest Bulk Chemicals Distributor in Indonesia Entry into Coal Mining and Coal Logistics First Private Company allowed to distribute Subsidised Fuel Extensive Logistics to handle bulk products 2

3 Integrated Logistics and Supply Chain Company Coal Mining & Coal Infrastructure in Central Kalimantan Petroleum distribution Unsubsidised fuel Container Ports, Coal Terminals, Bulk Cargo Ports in Guigang, China Retail Stations For Subsidised Petroleum Port Operations bulk cargo & containers Indonesia Logistics Basic Chemicals distribution Independent Petroleum Storage & Value added services 3

4 Infrastructure spread across the vast Indonesian Archipelago Tank Terminals, bulk warehouse, Ports, Petroleum tankers, Trucks to service customers across Indonesia Operates in 18 major sea and river ports in Indonesia 1 Sumatera: 1. Medan 2. Parawang (Terminal & Dermaga)** 3. Palembang (Terminal & Dermaga) 4. Lampung 2 Kalimantan: 11 Stagen 12 Pontianak 13 Banjarmasin 14 Buntok Baru** 15 Balikpapan ** 16 Satui Sulawesi: Makassar 18. Bitung** 18 Eastern Indonesia : 19. Tanker*** 20. Tanker*** ** Under construction Jawa: 5. Ciwandan (Merak) Bali: *** Tankers being acquired 6. Jakarta 7. Bandung 8. Semarang 9. Surabaya 10. Benoa 4

5 Assets - Petroleum and Chemical Tank Terminals Location: Medan- Palembang- Lampung- Banten- Bandung- Jakarta- Semarang- Surabaya- Tanjung Benoa- Pontianak- Stagen- Satui- Banjarmasin- Muara Tewe- Sanga-Sanga- Pangkep Number of Tanks: 135 Tanks Total Cap: 542,650 KL Under construction: 76,900 KL 5

6 Assets Sea and River Transport SPOB AKRA 20 Vessel Capacity (DWT) Ownership Permit MT AKRA AKR SIOPSUS. No B XXXIV.239/AT 54 SPOB AKRA AKR MT & TNB Chartered (20 Units) TOTAL

7 Assets Road Transport units units fleet ( Owned + 3 rd Party )

8 Assets Bulk Warehouses Location : Medan Bandung Jakarta Semarang Surabaya Total Space : 58,240 M2 8

9 Assets River Ports in Pearl River China 5 River Ports handling Containers and General Cargo Coal and Bulk Cargo in the Pearl River 9 Guigang- Guangxi- China

10 Largest distributor of Basic Chemicals Principals Basic Chemical Portfolio Caustic Soda Hydrochloric Acid PVC Resin Soda Ash Sodium Sulfate Sulfuric Acid Methanol Customes covering entire spectrum of Indonesian Economy Chemicals Textiles Paper Construction Consumer Industry Fertilizers Agriculture Plywood and wood working Food and Pharmaceuticals Mining Energy Bunker Services AKR is Indonesia s largest Basic Chemicals distributor with over 50 years of operation history (since 1960 s) Dominant market share as a supplier of many of the Basic Chemicals that it distributes Stable Revenues Stream: Predominantly commission based products 10

11 Basic Chemical Performance Indonesian GDP and consumer growth drives Revenues Quarterly Volume of Basic Chemicals (k MT) Quarterly Basic Chemicals Revenue (Rp bio) Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Quarterly Basic Chemicals ASP (Rp / kg) 1,707 1,745 1,677 1,702 1,935 2,085 2,261 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 11

12 Evolving into a major player in Distribution of Petroleum Products in Indonesia 12

13 First Mover in Import of Unsubsidised Petroleum Building on a strong platform in Energy distribution 2010 Re-awarded subsidized fuel distribution quota for 2011 Inaugurated the 250,000 KL petroleum terminal at Jakarta Port (Phase 1) Signed Sale Purchase Agreement for divestment of Sorini 2009 Expanded petroleum storage capacity in various locations Awarded subsidized fuel distribution quota for 2010 Acquired 5 coal mining concessions in Central Kalimantan Entered Kalimantan market and commissioned Stagen 50,000 KL HUB terminal Signed joint venture with Royal Vopak, the world s largest tank terminal operator, for 450,000 KL fuel storage terminal Acquired 5 river ports including a coal port/terminal in Guigang, China Integrated Supply Chain 2005 First mover in non subsidized fuel distribution in Indonesia Prior 2005 Indonesia s largest distributor of basic chemicals and leading Sorbitol producer in Asia Pacific Basic Chemicals Distribution Business Petroleum Distribution Business 13 Coal Mining & Coal Logistic Business

14 Overview of Indonesian Petroleum downstream Market Indonesia Consumption of Refined Products Indonesia Downstream Petroleum Market % Non- Subsidized 26.4 Mn KL Fuel, 25 Non Subsidised Subsidised Subsidized 38.6 Mn KL Fuel, 37 Source : Ministry of Finance Subsidy quota for Mn KL 60% Increase in Imports to meet shortfall in domestic production (k bbl/day) 1,500 1,400 1,300 1,200 1,100 1, Consumption Production Consumption Linear Trendline Source : BP Statistical Review of World Energy Indonesia is one of the largest downstream petroleum market in the Region Deregulation mandated by Law 22/2001 implemented from Oct 2005 Commodity boom and Strong GDP growth is driving energy demand AKR being the first mover has invested in infrastructure and registered significant increase in Petroleum sales 14

15 Indonesia now a Net Importer of Petroleum products - Falling crude and refinery output pushes Imports 000 BBL Forecast of Indonesian Petroleum Consumption 'Miillion Kilo liters Year Gasoline Diesel Kerosene Fuel Oil Refined Products consumption Gasoline Diesel Kerosene Fuel Oil Total Mn KL Total '000 Bbl per day 1,153 1,463 2,027 Source: BCG Report / Pertamina 15

16 Delivering fuels from Reliable and efficient end-to-end supply chain End-to-end supply chain International Suppliers AKR Corporindo Logistics/Supply Chains Customers Refineries Hub Terminal Terminal Inv Mgmt System Import Small Vessel Barge Truck Petroleum Products How AKR adds value to our Petroleum customers: Gasoil Fuel Oil Industrial Diesel Oil Mogas Controls the entire Supply Chain thereby ensuring Quality products and reliability in supplies Petroleum products from Reputed Oil Majors Competitive pricing Innovative solutions to customer requirements 16

17 Providing value added solutions to coal miners in Kalimantan Kalimantan and Eastern Indonesia contributes to over 70% of AKR fuel sales Driven by demand from coal mining/energy related sector. Infrastructure such as Tank Terminal in Stagen, SPOB in place New terminals / expansions planned in Banjarmasin, Pontianak, Balikpapan, Muara Tewe during the year 2011 Kalimantan Island Stagen, Pulau Laut Hub (80,000 KL) Pontianak Muara Teweh Sanga-Sanga Balikpapan Existing Terminal Banjarmasin Stagen (HUB Terminal) Proposed New terminal 17 SPOB for river transport

18 Petroleum sales volume grew 51% CAGR ( ) Low base offers future growth opportunity 21 Yearly Petroleum Sales Volume (k KL) ,025 5 Years CAGR ( F) of 42% 1,356 2,119 * 9M ,589 2,005 2,006 2,007 2,008 2,009 2,010 2,011 (Million KL) AKR Market Share 8.0% 24.4 AKR Market Share 0.3% Non Subsidized Subsidized * Annualized AKR Other Players Enjoying First mover advantage first private company to import and distribute petroleum products in Indonesia ( October 2005) AKR has established itself as a reliable, competitive and innovative supplier Controls the entire supply chain from Refinery to customer locations Bagged supply contracts from large Mining, Power sector and commercial establishments Strong Platform for growth in the near term considering the large market opportunity 18

19 Petroleum distribution strong revenue growth Quarterly Volume of Petroleum (k KL) Quarterly Petroleum revenue (Rp bio) ,461 3,747 4, ,391 1,642 2,105 2,336 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Quarterly Petroleum ASP (Rp / L) Petroleum Volume by Region 6,825 7,646 7,249 5,382 5,597 5,279 5,767 Jawa & Bali 21% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Kalimantan, Sulawesi, Papua 71% Sumatera 8% 19

20 1 st Indonesian Private Player in Subsidised Sector Opportunity for growth in Retail Sector 20

21 Growth Opportunity in Subsidised Segment AKR is the only private Indonesian company allowed to distribute subsidised fuel by BPH Migas Operates retail stations Own / Franchisee owned in 31 locations Province # petrol station North Sumatra 7 Lampung 10 West Kalimantan 5 South Kalimantan 5 East Kalimantan 3 South Sulawesi 1 Total 31 Franchisee Based Business Model I T systems and packages implemented to control operations Presents Growth Opportunity as Subsidised segment is deregulated 21

22 Fuel subsidy removal priority of the Indonesian Government (Rp, Fuel Subsidies Budget (Rp, Trillion) Energy Subsidies Allocation as % of budget Education 21% Defence 11% Health 3% Soc Security 1% Energy Subsidy 32% Capital Invst 32% Source: Ministry of Finance Subsidies availed by the well to do class Mis allocation of subsidies Higher Income range Middle Income Range 22 Lower Income Range

23 Timeline for removal of subsidies set Entry of Majors in retail Timeline for Removal of Subsidies Oil Majors are currently only selling Un subsidised Gasoline 23

24 Provider of Petroleum logistics facilities to oil majors - Independent Tank Storage and Haulier Services Independent Tank terminal facilities from the largest Private Tank Storage facilities in Tanjung Priok Port Joint venture with Royal Vopak Premium haulier for meeting the transportation needs of Oil Companies Largest Independent Petroleum Storage facility in Jakarta inaugurated 2010 Premium Transportation Provider 24

25 Petroleum Distribution Growth Plan Consolidate and grow market share Mining, Power Industrial and Commercial Sector ( Un subsidised ) Develop Franchise Based Retail distribution supported by Network Participate in opening up of Retail Sector ( Now subsidised ) Provide Value added Terminal and Haulier Facilities to Third Parties

26 2011 Year of Profitable growth in Trading and Distribution 26

27 High Growth in Revenue and Net Profits Strong Revenue Growth 14,383 7 Years CAGR of 36% 5,895 9,476 8,960 12,195 Top line growth driven by Volume growth 1,382 2,187 2,828 3, M 2011 Consistent Earning Growth 456 Core Net Profit for 9M 2011 double YOY Years CAGR of 35% M

28 Top line driven Strong growth performance in all segments reported during 9M 2011 drives profitability Products Unit 9M11 9M10 % increase Trading and Distribution Petroleum KL 1,589, , % Basic Chemicals MT 905, , % Logistics - General & Bulk BU, UEPN, & ADH MT 6,925,268 5,376, % AGP & AGTP MT 2,604,167 3,228, % Logistics - Container Indonesia TEUs 108, , % GGACP TEUs 58,795 33, % Manufacturing Aruki MT 66,835 53, % Khalista MT 69,226 46, % Coal Trading MT 17,742 12, % 28

29 Impressive 9M 2011 performance Trading & Distribution Parent Company Only Financial Statement represents performance of Trading and Distribution Business Income Statement (IDR billion) 9M11 9M10 % increase Sales 13,594 6, % Cost Of Goods Sold 12,996 6,389 Gross profit % Operating expense Operating profit % Interest expense Forex gain (loss) Other income (expense) 46 5 Earning Before Tax % Tax Earning before minority interest % Minority interest 0 0 Net income % gross margin 4.4% 4.4% operating margin 3.1% 2.4% net margin 3.2% 2.2% PT AKR Corporindo Tbk September

30 9M 2011 consolidated financial performance Our strong core net profit and revenue growth in 9M 2011 was driven by strong petroleum performance Consolidated Income Statement (IDR billion) 9M11 9M10 % increase Sales 14,383 8, % Cost Of Goods Sold 13,626 7,858 Gross profit % Operating expense Operating profit % Interest expense Forex gain (loss) Other income (expense) Earning Before Tax % Tax Earning before minority interest % Minority interest Net income % Extraordinary items 1,683 0 Net income including extraordinary items 2, % Gross margin 5.3% 8.0% Operating margin 3.2% 3.8% Net margin 3.2% 2.6% Revenue Breakdown 9M 2011 Basic Chemical s, 13% Manufact Logistics, uring, 4% 1% Petroleu m, 81% Revenue Breakdown 9M 2010 Logistics, Manufact 3% uring, 20% Basic Chemical s, 17% Petroleu m, 60% 30

31 Growth drivers for short / medium term Building an Integrated Coal Mining & Coal Logistics Business 31

32 It is not just about mining; it is about logistics Capitalizing on its strong logistics and supply chain capabilities AKR is now investing and building a robust coal mining and coal logistics business in Central Kalimantan Why Coal Business? Map of Kalimantan Coal Resources in Central Kalimantan Inferred Indicated Measured Total : 2,427,890,674 MT : 1,576,837,874 MT : 1,353,795,594 MT : 5,358,524,142 MT Source: Central Kalimantan Government AKR Buntok Baru Coal Terminal 213 km 239 km Muara Tewe 51 km AKR Teluk Timbau Intermediate Stock Pile (ISP) Coal Logistics Network from Buntok Baru to Taboneo Transshipment Port 32 AKR Coal Mining Strong demand for Coal in Indonesia, China and India Coal mining and distribution is dependent on logistics capabilities Ability to control coal infrastructure key to successful coal business Why Central Kalimantan? Home for medium to high calorie coal Requires significant investment in coal logistics infrastructure AKR can synergize its coal infrastructure to expand petroleum business

33 Synergies between coal, petroleum, and logistics Key Strategies: 1. Mine and distribute coal from Own mines in a cost effective way 2. Synergize with Petroleum distribution business 3. Develop hauling roads, coal terminals for own use and also generate 3 rd parties logistics income 4. Opportunity to buy coal directly from surrounding mine sites 5. Explore opportunities to acquire undervalued coal concessions surrounding AKR coal logistics network 6. Market coal to China through AKR Coal Terminal in Guigang River Ports: Blend with high sulfur Chinese coal and sell as environmentally friendly coal Increase coal handled in AKR Coal Terminal in China Linking the world s largest thermal coal exporter with the world s largest consumer of coal Coal Mining Hauling Road Indonesia coal terminal 33 Guigang Coal Terminals

34 Coal logistics network - kicking off a new growth phase Coal Concessions Status: In Production 58km Hauling Roads JV 50:50 w/ Forest Concession Holder Serve AKR and 3 rd Parties Capex Rp 90 bio (2011/12) Status: Road Upgrading 51 km AKR Coal Mine Profile: Acquired : November 2009 for Rp 60 billion AKR Shareholding : 94.6% Area : 24,388 ha (5 concessions) Location : Central Kalimantan Reserve : 12 Mn MT (1 st of 5 coal concessions) CV : 5,800 6,100 kcal Striping Ratio : 1 : 8 Production Target 2015 : 5 mn MT(own coal) + 2 Mn ( 3 rd party) Latest Development : - All licenses received : - Contractor Appointed - Secured hauling roads - Production has started since June 11 Coal Terminal Status: Completed Location : Muara Tewe Area : 38 ha Capacity : 1,000 MT/hour Ownership: 100% AKR Handle AKR and 3 rd Parties Coal Capex Rp 30 bio (2010) Intermediate Coal Terminal Status: In Progress Location :Teluk Timbau Area : 42 ha Functioned as intermediate stockpile coal port Ownership: 100% AKR Capex Rp 40 bio (2012) 34 AKR Guigang Coal Terminal Status: In operation Location: Guigang, China Coal Terminal capacity 8 mn MT Acquired in 2006 Coal Market: End Users (Power Plants, Steel Factory, Industrials, etc)

35 Strong Financial Position Offers platform for improved returns to shareholders 35

36 Strong balance sheet to fund growth Balance sheet as at September 30, 2011 compared to June 30, 2011 and Dec 31, 2010 Consolidated Balance Sheet (IDR billion) 30-Sep Jun Dec-10 Current asset Cash 1,334 1, Trade receivable 2,198 2,192 1,607 Other receivable Inventory 1, ,425 Prepaid expense Other current asset Noncurrent asset Fixed asset 2,370 2,314 3,038 Other noncurrent asset Total asset 8,109 8,115 7, Working Capital Turnover M10 6M10 9M10 12M10 3M11 6M11 9M11 Current liabilities Trade payable 3,269 2,688 1,967 Other payable Advance received Accrued expense Short-term loan ,441 Other short-term liabilities Long-term liabilities Long-term loan Other long-term liabilities Minority interest Equity Capital 1,114 1,076 1,173 Retained earning 2,069 2,652 1,213 Total liabilities and equity 8,109 8,115 7,666 Receivable Days Inventory Days Payable Days Net Gearing Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q

37 Key financial ratio Ratios Unit 9M11 9M10 profitability gross margin % 5.3% 8.0% operating margin % 3.2% 3.8% net margin % 3.2% 2.6% Return On Asset * % 7.5% 4.2% Return On Equity * % 19.1% 12.6% asset management * total asset turnover x receivable period days inventory period days payable period days cash conversion cycle days 0 37 leverage current ratio x asset / equity days net gearing days times interest earned days * Annualized 37

38 Increasing shareholder value Share Performance 1 Week 1 Month 6 Months 1 Year 5 Years AKR Corporindo Tbk PT %+30.11% % % % JSX COMPOSITE INDEX +1.18% % -2.0% +2.05% % AKRA IJ Source: (26 Oct 2011) Over the last five years AKR consistently outperformed the INDONESIA COMPOSITE INDEX 38

39 Consistent payout of dividend Consistent dividend payout ratio above 30% in the last 7 years. Year Cash Dividend per Share (Rp) (1) Net Profits (Rp Mn) Total Dividend (Rp Mn) Payout Ratio ,117 24, % ,289 37, % ,084 40, % ,208 59, % ,033 65, % ,718 94, % , , % (2) 1,958,263 (3) 1,276,355 - na - (1) adjusted with a 1: 5 stock split (3) 6M 2011 Net Profit (2) Interim dividend. Including Interim Dividend II of Rp 200/share paid on 8 September 2011 (Cum Date is on 22 August 2011) (Rp Bio) Historical Cash Dividend Payment (%) Consistent Payout Ratio 39% % % 35% 33% % 32% 31% 31% % %

40 Corporate structure and shareholding PT Arthakencana Rayatama 59.68% Public 40.32% ** Trading and Distribution Logistics Coal Business Manufacturing 99.99% 99.99% 51.0% Stock data * Indonesia PT Usaha Era Pratama Nusantara PT Andahanesa Abadi PT Jakarta Tank Terminal Bloomberg Code : AKRA IJ Market Cap (US$ mn) : 1,295 Issued Shares (mn) : 3,822 Major Shareholders (%) China AKR Guigang Guangxi Container Port AKR Guigang Port Co AKR Guigang Transshipment Port AKR Guigang Coal Trading PT Arthakencana Rayatama : 59.68% Others : 40.32% 94.64% 100.0% 78.0% 100.0% % PT Anugrah 99.96% Karya Raya 99.99% PT Bumi Karunia 99.96% Pertiwi 99.99% PT Sarana Tambang Utama 99.99% PT Rizki Tambang Selaras 99.99% PT Mineral Tambang Wahan 99.99% PT Baruta Abadi 50% PT Berkah Rukun Bersama China 100.0% Khalista (Liuzhou) Chemical Industries Ltd Indonesia 99.96% PT Arjuna Utama Kimia * Market capitalization as of 26 Oct 2011 Shareholding as of 30 Sept 2011 ** Free float > 40% - AKR eligible for 5% reduction in corporate income tax rate

41 Strong emphasis on Corporate Governance 2011 Corporate Governance Asia Recognition Award 2011: The Best of Asia Top 10 Best Performing Companies in Indonesia 2010 Best Overall for Corporate Governance in Indonesia Best for Disclosure and Transparency in Indonesia Best for Responsibilities of Management and the Board of Directors in Indonesia Best for Shareholder s Right and Equitable Treatment in Indonesia Best for Investor Relations in Indonesia Best Investor Relations Officer in Indonesia Asia Best Companies Indonesia s Best Investor Relations 2009 The Best Managed Small-Cap Corporate in Indonesia Haryanto Adikoesoemo E & Y Entrepreneur of the year- Indonesia 2008 Best Investor Relations Officer in Indonesia 41

42 Thank you Please visit us at Mailing address: PT AKR Corporindo Tbk. Wisma AKR, 6-8 th Floor Jl. Panjang no.5, Kebon Jeruk Jakarta Indonesia Contacts: V Suresh Director AKR Corporindo Tbk. suresh.vembu@akr.co.id ph Disclaimer: This communication is solely for the addressees) and may contain confidential or privileged information. This publication does not have regard to specific investment objectives, financial situation and the particular needs of any specific person or entity who may receive this report. Accordingly, neither we nor any of our affiliates nor persons related to us accept any liability whatsoever for any direct, indirect or consequential losses or damages that may arise from the use of information or opinions in this publication. Many factors, including those discussed more fully elsewhere in this release and in PT AKR Corporindo Tbk Or its affiliates' filings with the respective regulatory authorities particularly their quarterly financial statements, annual reports, corporate presentations as well as others, could cause results to differ materially from those stated. Opinions expressed may be subject to change without notice. Please contact us if you do not wish to receive these communications in the future. 42