CORPORATE PRESENTATION

Transcription

1 CORPORATE PRESENTATION February, 2015

2 Snapshot of Indonesia: Biggest Archipelago in The World GDP 2013 USD billion GDP per kapita USD 5,477 (2014 est) Population Land area Sea area Coast line million (4 th biggest population) 1,904,443 sq km 3,116,163 sq km 81,000 km A young population with rising middle class accounting for more than 56% of the population 2

3 Prospects and Challenges Prospects Indonesia is one of the fastest growing economies among G20 countries GDP growth in 2013 recorded 5.78% slightly lower than 6.2% recorded in 2012 Significant FDI inflows and interest of foreign firms to invest in Indonesia Stable political environment with vibrant democracy Resilient financial markets with strong macro economic fundamentals Challenges Indonesia needs structural reform on infrastructure Logistics and supply chain remains a challenge in this large archipalego More progress needed on Infrastructure : sea ports, airports, toll road, railways, electricty and telecommunications Implementation challenges : land clearing, project design, clear coordination between central and local governments and long term financing 3

4 Infrastructure Bottlenecks and Impact on Costs Logistics cost highest in region and needs improvement Lack of efficient infrastructure results in high operational costs Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia (MP3EI) is a nation wide integrated infrastructure development initiative set up in 2011 to implement infrastructure projects Combination of government projects as well as through Public Private Partnerships (PPP) Competitiveness of Logistic Industry Country Rank Singapore 1 Malaysia 29 Thailand 38 Philippines 52 Vietnam 53 Indonesia 59 Cambodia 129 Indonesia Competitiveness in Infrastructrure Rank Pillar of Infra (out of 144 countries) Overall Infrastructure 72 Quality of roads 72 Railroads 41 Ports Infrastructure 77 Air transport 64 Quality of Electricity 84 Fixed telephone lines 71 Source: World Economic Forum, The Global competitiveness report 4

5 Vision The leading provider of logistic services and supply chain solutions for bulk chemical & energy distribution in Indonesia 5

6 Business Model Logistic Services and Supply Chain Solutions Extensive Infrastructure across Indonesia Distribution of Basic Chemicals and Petroleum Third party logistics and inventory management Added Value to Customers Largest bulk logistics and supply chain network in private sector Largest national private distributor of petroleum products to industrial customers Since 2010, appointed by Government to distribute subsidized petroleum nationwide Largest basic chemical distributor in Indonesia with leading market share The only private sector company appointed by government to distribute subsidized petroleum Investing in Indonesia s largest Integrated Port and Industrial Estate to serve Indonesian industry 6

7 Over 50 years of Leadership in Logistics s Chemicals trading business was founded at Surabaya s The business was incorporated as PT Aneka Kimia Raya on November 28, s AKR commenced building of storage tanks for basic chemicals and warehouses in several major ports in Indonesia GO PUBLIC AKR conducted IPO and its shares were listed on Indonesia Stock Exchange on October 3, s The first national private company to distribute subsidized petroleum in Indonesia. The first national private company to import and distribute nonsubsidized petroleum in Indonesia in AKR acquired and commenced operation of ports in China in AKR expanded its logistic infrastructure AKR built more petrol stations in 1 st Phase of Jakarta Tank Terminal, AKR s subsidiary in tank terminal business at Tanjung Priok, was inaugurated in AKR expanded its logistic infrastructure. Sumatera, Java, Bali, Kalimantan and Sulawesi. AKR and Pelindo III jointly develop Java Integrated Industrial and Ports Estate (JIIPE) which integrates industrial estate and deep sea port at Gresik East Java. 7

8 Extensive Supply Chain Network in Indonesia Medan Pontianak Bitung Palembang Samarinda Muara Teweh Lampung Banten Jakarta Bandung Banjarmasin Satui Semarang Surabaya Bali Stagen Logistic Facilities Sea ports in Indonesia River Ports in Indonesia River Ports in China Storage Tanks Terminal Self-propelled Oil Barges and Vessels Warehouses Trucks Harbor Mobile Crane Total / Capacity 9 ports 6 ports 5 ports 599,600 KL 12 units 25 units ± 350 units 8 units 8

9 Storage Tank Terminals in Major Ports Jakarta Tank Terminal, Tanjung Priok - Jakarta 250,000 KL; 51% owned by AKR Stagen, Pulau Laut Kalimantan 80,000 KL Tanjung Perak, Surabaya 92,500 KL Ciwandan 36,700 KL 9

10 Efficient Sea and Land Transportation Units Sea Transportation SPOB AKRA 60 SPOB AKRA 70 SPOB AKRA 80 Currently AKR owns 12 units of barges capable of sailing through shallow rivers. Land Transportation Operational trucks Trucks to serve third party AKR owns around 350 trucks to serve logistics for internal and third party. 10

11 Bulk Handling and Port Operations in Indonesia Warehouse Dry bulk and container port at Tanjung Perak Port handling and warehouse operations at Surabaya conducted by AKR s subsidiary, PT Usaha Era Pratama Nusantara. 11

12 Large River Ports Operations in Pearl River China Container port at Guigang Port operations at Pearl River, Guigang, Guangxi province Coal port at Guigang 12

13 Products: Trading and Distribution Leading Distributor of Basic Chemicals and Petroleum Products Basic Chemicals: Caustic Soda Hydrochloric Acid PVC Resin Soda Ash Sodium Sulfate Sulfuric Acid Methanol Hydrogen Peroxide Sodium Hypoc Petroleum: High Speed Diesel Fuel Oil Industrial Diesel Oil Motor Gasoline 13

14 Basic Chemicals Distribution Principals Basic Chemicals Sales (Rp billion) Asahimas Chemicals Solvay USA Established and maintain long-term relationship with principals and customers Commission based business model: stable margins, profitable business Demand grows in line with Indonesia economic growth. Industries served: - textile - fertilizer - pharmaceutical - pulp and paper - plywood - chemical - consumer goods - food - etc 14

15 Petroleum: Efficient and Cost Effective Solutions Unique business model with effective risk management and stable margins End to end management of supply chain including import terminals, trucks, Self Propelled Oil Barges ensuring timely deliveries to customers Efficient Fuel Management solutions with extensive use of Information Technology to control, report and billing operations Sourcing of petroleum products from overseas refineries as per customer requirements Procurement from refinery Storage tank terminals Transportation units Information technology 15

16 Downstream Petroleum Market Update Indonesia, despite of having oil production fields and is among the top 25 oil-producing nations in the world, has turned into a net importer of petroleum since Current refining capacity is insufficient to meet demand growth. Since the construction of the Balongan refinery in 1994, no refineries have been built in Indonesia. Petroleum consumption reached more than 1.6 million bbl/d in 2013 while domestic refinery could meet only about 64% of domestic oil products consumption. Oil product imports met the remaining demand. A strong economy, population growth and state subsidies for fuels have worked together to push domestic oil demand beyond supply. Declining Oil Production vs Increasing Consumption Indonesian Downstream Petroleum Volume Million KL Petroleum Volume Subsidized petroleum Nonsubsidized petroleum Total Volume

17 Petroleum Distribution Projected Segment Wise Breakdown 2014 Power, 12% Total Petroleum Revenues (Rp billion) Subsidized - Retail, 20% Industrial, 15% Coal Mining, 35% Non-coal Mining, 18% Stable business model, effective risk management and stable margin Growth from 2005 to 2013 driven by expanding customer base in industrial, mining and power sector. With increased allocation of subsidized fuel to be distributed in 2014, expect continued growth driven by entry into retail segment 17

18 Subsidized Petroleum Update 18

19 Public Service Obligation (PSO) Mandate BPH Migas has retained AKR as the only private company to distribute subsidized petroleum other than Pertamina. Allocation for the year 2015 is 645,000 KL consisting of 625,000 KL diesel (Gas Oil) and 20,000 KL gasoline (Mogas 88). In 2014, the allocation consisted of 500,000 KL diesel and 140,000 KL gasoline. Number of AKR Petrol Stations Additional 38 locations awarded for 2015 which are planned to operate before the end of first semester of Due to Government policy for removal of subsidy for Mogas, entry into retail for non-subsidized petroleum being considered. Number of petrol stations to distribute subsidized petroleum nationwide Region Java Sumatera Kalimantan Bali 2 2 Sulawesi 1 Total

20 Indonesia Removes Subsidy for Gasoline Benefits anticipated by AKR No need for obtaining any more quotas for MOGAS and opening of new petrol stations to sell to motorists will be faster. This will enable retail sales segment of AKR to grow at a faster rate during the coming years. Sales of RON 92 fuel through petrol stations will now become economically feasible and add a new product to AKR portfolio of products. Distribution margins for subsidized price has been doubled. Distribution of subsidized petroleum will be more profitable. Private and foreign companies will be able to enter the market - need for infrastructure and petroleum terminal and transportation/logistics. Subsidized diesel sales in Java and subsidized MOGAS sales outside Java still allowed only through AKR and Pertamina. Overall improvement in working capital cycles as no longer subsidies will be paid by Government but will be collected upfront from retail customers. 20

21 New Petrol Stations SPBKB Melak SPBKB Gringsing Batang SPBKB Cempaka SPBKB Sekadau SPBN Bajomulyo - Pati SPBN Jambean - Pekalongan 21

22 New Petrol Stations SPBN Moro Demak SPBN sendang Sikucing - Kendal SPBN Tambaklorok - Semarang SPBN Tegal Sari Tegal SPBN Losari - Brebes SPBN Mlonggo - Jepara 22

23 Innovative IT Solutions to Control Operations Recognized by regulatory authorities as an effective tool for control and accounting of fuel supplies Transmission of transaction data real time using SMS AKR Online access / data retrieval and report of daily sales BPH Migas Outlet SPBKB / SPBN Finance Ministry Car registration number 23

24 Financial 9M14 Performance 24

25 Sustainable Growth in Revenue and Profits Sales and Revenues (Rp billion) Gross Profit (Rp billion) Operating Profit (Rp billion) Net Income (Rp billion) * Excluding extraordinary gain from divestment of Rp 1, billion * 25

26 Strong Financial Position for Future Growth Financial Position 30-Sep Dec Sep-13 Current Assets Cash and cash equivalents ,238.9 Trade receivables 5, , ,781.5 Inventories 1, , ,738.5 Other current assets Total Current Assets 7, , ,617.1 Non-Current Assets Property, plant and equipment 4, , ,158.2 Industrial estate land inventory under development 1, , ,109.7 Other non-current assets 1, , ,136.7 Total Non-current Assets 7, , ,404.6 TOTAL ASSETS 15, , ,021.7 Working Capital Management Unit 9M M13 Total asset turnover x Receivable period days Inventory period days Payable period days During Q4 2014: AKR has collected significant portion of the subsidy amount due from the government. Liabilities Trade payables 3, , ,243.0 Bank loans and others 3, , ,225.3 Bond payables 1, , ,490.2 Other liabilities Total Liabilities 10, , ,643.8 Equity Equity attributable to equity holders of the parent entity 5, , ,793.0 Non-controlling interests Total Equity 5, , ,377.9 TOTAL LIABILITIES AND EQUITY 15, , ,

27 Improvement in Margins and Lower Gearing Ratios Unit 9M M13 Profitability Gross margin % Operating margin % Net margin % Return On Asset * % Return On Equity * % Net Gearing Leverage Current ratio x Asset / equity x Net gearing x * annualized 27

28 Sustainable Growth in Revenue and Profits Statements of Income 9M14 9M13 Growth Sales and Revenues 16, , % Cost of Sales and Revenues -15, ,203.4 Gross Profit 1, % Gross margin 7.2% 6.0% Operating expenses Operating Profit % Operating margin 4.5% 3.6% Finance income Finance costs Other income (expenses) Profit before tax % Tax Profit for the period % Non-controlling interests Guidance for 2014* : Improvement in operational performance due to higher gross margin. Finance costs expected to be lower in 2015 due to lower subsidy claim and better working capital management. Forex risk well-managed despite of Rupiah depreciation. * subject to audit Profit for the period attributable to equity holders of the parent entity % Net margin 3.4% 3.2% 28

29 Segment Wise Performance Sales and Revenues by Segment (IDR billion) 9M14 9M13 Growth TRADING AND DISTRIBUTION Petroleum 13, , % Basic chemical 2, , % Sub-total 15, , % MANUFACTURING Sorbitol, starch and starch derivatives % Others % Sub-total % LOGISTICS SERVICES - third parties % COAL MINING AND TRADING % TOTAL 16, , % 29

30 Next Growth Opportunity: Java Integrated Industrial and Ports Estate 30

31 JIIPE Provides Logistics and Energy Solutions PURPOSES OF JIIPE Factories and bulk warehouses Electricity and utilities 1. Contribute to lower the logistic cost of Indonesia 2. Provide competitive energy Water treatment and waste management Large scale Industrial Estate 1,761 Ha BKMS Industrial Estate Gas and energy terminal Railway sidings 3. Support Indonesian companies to be global suppliers utilizing JIIPE s deep sea port INTEGRATED Deep sea port (-16 draft) BMS Port Bulk and clean port Container terminal Energy terminal 31

32 Public Private Partnership PT AKR CORPORINDO Tbk A public listed company, leading in integrated logistic services and bulk chemical & energy distribution in Indonesia PT PELABUHAN INDONESIA III A state owned enterprise handling all the public ports in Central Java, East Java, Bali, South Kalimantan, Central Kalimantan and Nusa Tenggara 99.99% 96.84% PT USAHA ERA PRATAMA NUSANTARA Logistic services provider PT BERLIAN JASA TERMINAL INDONESIA Forwarding services provider at Tanjung Perak Port Surabaya 60% 40% 40% 60% 32

33 Gresik : Ideal location to set up manufacturing companies Gresik Located at Gresik, 30 km outside Surabaya, Indonesia s second largest city. Bordered by a long coastline fronting deep sea, connected by Rail and Toll roads as well as the Port. Surabaya is the manufacturing hub for Eastern part of Indonesia and also home to consumer goods manufacturers. Gresik is now the preferred destination for manufacturing units to set base with host of Smelters, Cement and Fertilizer plants already operating. Madura Strait Situated at the mouth of the Strait of Madura, the project has access to deep water and sheltered from open sea by the Island of Madura

34 Master Plan ZONING AREA MARK Z O N E RESIDENTIAL ESTATE INDUSTRIAL ESTATE SEA PORT ESTATE AREA ( Ha ) PERCENTA GE (%) , TOTAL 2,

35 MASTER PLAN IN STAGES 35

36 Well-Planned Industrial Estate with Excellent Facilities 36

37 Industrial Estate Development Update Land Upgradation Access Road from main entrance to sea side completed Tanggok Bridge across the river is complete Entrance Access Road > 7 km Land Upgradation 37

38 Deep Water Sea Port for Bulk and Energy View of Madura Straits with overlay of proposed port reclamation proposed jetty length 6,000 m Deep sea port of draft -16 meters, capable of handling large size vessels Sheltered with natural break water: Madura island. Creates recurring income from the following business opportunities: - port operations - coal terminals - gas and energy distribution Road access from industrial estate to port nearly complete 38

39 Phase 1 of sea port expected to be completed by Q Bridge and Trestle The trestle connecting the port and jetty is under construction. Phase I Sea reclamation is proceeding. Jetty The piling work for jetty is on going. 39

40 Aerial Photograph of Project Jetty PT Maspion Access road from industrial estate Reclamation 40

41 Sea Port: Land Reclamation Progress 41

42 Sea Port: 80 ha land reclaimed - Port 42

43 Trestle 43

44 Port Bridge 44

45 Developing a Recurring Income Model JIIPE Project business plan is to create value to stakeholders in the long run Energy and Recurring Income Real estate sales will generate significant and profitable revenues Plans to build power generation plants, LNG receiving terminals and coal distribution facilities jointly with partners Opportunity to enter into new business such as gas distribution and expand current business Energy Recurring Joint Venture Real Estate Gas Income - Power plants Sales (New) (New) - Oil & Gas Terminals - Water supplies - Coal terminals - Railway depot - Port operations Envisages a recurring and superior revenue stream comprising of: Distribution of energy, raw materials and products Recurring income from Industrial Estate Logistics income from warehousing, railway terminal operations, port operations Fees and other income from provision of utilities Overall a superior return to stakeholders 45

46 Corporate Information 46

47 Shareholding Structure and Share Performance Majority Shareholders Shareholders per Dec 31, 2014 Shares Ownership PT Arthakencana Rayatama 2,300,410, % Management 28,270, % Public 1,584,956, % Total 3,913,637, % Soegiarto Adikoesoemo Chairman & Founder Haryanto Adikoesoemo President & Group CEO 47

48 Consistent Dividend Payout above 30% Year Cash Dividend per share Net Income (Rp bn) Total Dividend (Rp bn) Dividend Payout Ratio % % % ,293.4 * 1, % % % ** * Including extraordinary gain on divestment ** Interim dividend 59.9% 31.2% 34.4% 39.3% 38.7% 39.0%

49 Recognized for Corporate Governance 1 st Rank Annual Report Awards 2013 for category Private Nonfinancial Listed Best Investor Relations: PT AKR Corporindo Tbk Asia s Best CFO (Investor Relations): Suresh Vembu by Corporate Governance Asia Excellence Recognitions Awards 2014 Asia s Icon on Corporate Governance 2014 by Corporate Governance Asia Peringkat 2 Most Admired Companies 2014 Category Trade and Services by Fortune Indonesia 49

50 Thank You V Suresh Director suresh.vembu@akr.co.id Erik Budiman Investor Relations erik.budiman@akr.co.id PT AKR Corporindo Tbk Wisma AKR Lantai 8 Jl. Panjang No. 5 Kebon Jeruk Jakarta Barat Indonesia 50

51 Disclaimer These materials have been prepared by PT AKR Corporindo Tbk (the Company ) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. The Company or any of its affiliates, advisers or representatives accept no liability whatsoever for any loss howsover arising from any information presentated or contained in these materials. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. These materials contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. Such forwardlooking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice. 51