Pt Akr Corporindo Tbk · IDX:AKRA
Pt Akr Corporindo Tbk — Investor Presentation (August 2023)
44 slides from Pt Akr Corporindo Tbk's investor presentation, Aug 28, 2023
Slide 1: Better visibility of Potential from JIIPE - Riding Indonesia's Industrial transformation
Better visibility of Potential from JIIPE - Riding Indonesia’s Industrial transformation Corporate Presentation AUGUST 2023 28-Aug-23
Slide 2: Disclaimer Forward Looking Statement
Disclaimer Forward Looking Statement No representations and warranties shall be made in relation to the reasonableness, accuracy, completeness or correctness of the information or opinions contained in this presentation. PT AKR Corporindo Tbk (the "Company) together with members of the Board of Dire
Slide 3: AKR at glance
AKR at glance ❑ AKR is a leading private company that provides supply chain logistics services for petroleum products and basic chemicals in Indonesia. ❑ AKR has 60 years of experience in Logistics Services from upstream to downstream ❑ AKRA is currently developing core competencies to enter retail,
Slide 4: Four Pillars of AKR growth
Four Pillars of AKR growth Pioneer and leader in all business segments Solutions provider with extensive infrastructure investments Petroleum Basic Chemical Industrial Estate Recurring Income ✓ Distributing Chlor ✓ Largest integrated ✓ Flow of consistent ✓ Largest private alkali, Acids, and other in
Slide 5: 3C's of AKRA Sustainable Growth
3C’s of AKRA Sustainable Growth Promoters with Proven Track record ❑ High quality business – Consistently generating CAGR 20% (2005-2022) ❑ Net Profit Grew 235% in 3 years (2019-2022) Compounder ❑ Sustainable growth from trading & distribution and investments in JIIPE ❑ Delivering strong earnings in
Slide 6: Providing Logistic solutions for B2B and B2C Customer
Providing Logistic solutions for B2B and B2C Customer with Extensive logistics and supply chain capabilities Across Indonesian Archipelago Main Hub Terminals Infrastructure built over 5 decades Jakarta Tank Terminal JV with Royal Vopak AKR has 820,000 Stagen, KL Chemical and South Kalimantan Petrole
Slide 7: 1H 2023 Result Highlights
1H 2023 Result Highlights – Continuing strong performance delivered in 2022 1H23 performance highlights Strong growth despite pandemic & supply chain disruption 2,403 +116% Net Profit EBITDA Gross Profit 12%yoy Rp Bn 8%yoy 13%yoy 1,112 925 717 Rp 1,031 Bn Rp 1,604 Bn Rp 1,810 Bn 2019 2020 2021 2022
Slide 8: Key success Factor of AKR
Consistently delivered Net Profit growth CAGR 20% (2005-2022) AKR has been delivered net profit growth CAGR of 20.1% growth in 16 years Key success Factor of AKR 3.0 3,000 2.5 2,403 2,500 Proven business model Commission based/Formula based Pricing 2.0 2,000 Cost Efficiency 1.5 1,500 1,112 Disciplin
Slide 9: Highlight of Profit and Loss - 6 Months ended 30th June 2023
Highlight of Profit and Loss – 6 Months ended 30th June 2023 6M 2023 Income Statement (IDR bn) Revenue Breakdown 1H23 In Rp Bn 1H23 1H22 % Logistic and Industrial Estate Manufacturing 3% Total Revenue 19,855 22,109 -10% 4% Cost of Sales and Revenue (18,045) (20,491) -12% Gross Profit 1,810 1,618 12%
Slide 10: Improvement in Gross Profit with Significant contribution from JIIPE
Improvement in Gross Profit with Significant contribution from JIIPE Consistent Gross Profit Improvement (IDR bn) Consistent Earnings Improvement (IDR bn) 1H23 Gross Profit Breakdown 1,810 Logistic and 1,031 Manufacturing 1,618 6% 955 Industrial Estate 18% 1,092 1,024 Trading and 550 Distribution 83
Slide 11: Trading & Distribution: Volumes on target with margins sustained
Trading & Distribution : Volumes on target with margins sustained Petroleum Basic Chemicals Petroleum Sales Volume ASP Petroleum Chemical ASP Chemicals Sales Volume May-19 Sep-19 May-20 May-21 May-22 May-23 Jan-19 Jan-20 Sep-20 Jan-21 Sep-21 Jan-22 Sep-22 Jan-23 2Q22 1Q23 2Q23 2Q22 1Q23 2Q23 ➢ Q 2 2
Slide 12: B2B petroleum - Growth driven by volume and sustained margins
B2B petroleum – Growth driven by volume and sustained margins Petroleum sales Volume (mn KL) Growth 6-8% Key Factors aiding growth Despite supply chain disruptions, deliveries assured due to strength in infrastructure Million Kilo Litres Strong supply relationship Increase in Market share in key cus
Slide 13: Proven Business Model
Proven Business Model Delivered strong earnings in all business cycles AKR Business model enables passthrough of price movements and ensuring consistent margins Pricing Mechanism Chemicals commissioned mechanics Oil price movement vs Net profit 120.00 Purchasing Period Selling Period Ref. Price Dome
Slide 14: Growth Outlook for Petroleum remains positive
Growth Outlook for Petroleum remains positive Mining Industries Still Growing Growth Opportunity for Retail from Government Policy to Reduce subsidized Fuel 40.0 30.0 Mn KL 20.0 10.0 - 2014 2015 2016 2017 2018 2019 2020 2021 Source: MEMR Source: MEMR, Energy Non subsidised Mogas Subsidised Mogas Han
Slide 15: Expansion of Petroleum Retail Network with bp
Expansion of Petroleum Retail Network with bp - World Class fuel & non fuel offers boosting volumes Significant Providing high change quality on Mogas fuel and landscape user experience Significant Growth in sales over past 6 months One-stop-shop with front store parking Compact Concept to Accelerat
Slide 16: Basic Chemicals - increasing demand from Smelters & other Industry
Basic Chemicals – increasing demand from Smelters & other Industry Chemical Sales Volume Basic Chemicals Products distributed Caustic Soda Hydrochloric Acid Smelter 2Q22 1Q23 2Q23 PVC Resins Textile Caustic soda customer Rayon Sodium Other 31% Manufacture soap 9% Hypochlorite 10% Sulphuric Acid Food
Slide 17: Demand for Basic Chemicals Set to Rise with Down-streaming of Minerals
Demand for Basic Chemicals Set to Rise with Down-streaming of Minerals Indonesia Caustic Soda Estimate (Th MT) Rising Number of Smelters being Commissioned 4,500 4,500 OTHER TEXTILE MSG CHEMICAL 53 53 4,000 SOAP NICKEL 4,000 3,500 ALUMINA RAYON 3,500 3,000 3,000 2,500 2,500 28 23 2,000 2,000 19 16 1
Slide 18: Java Integrated Industrial & Port Estate Special Economic Zone (JIIPE SEZ)
Java Integrated Industrial & Port Estate Special Economic Zone (JIIPE SEZ) 28-Aug-23
Slide 19: Favorable Condition for Industrial Estate Development (1)
Favorable Condition for Industrial Estate Development (1) Indonesia strategy to Improving Investment develop Downstream conditions with various Industry Incentives Indonesia is undergoing development of As commitment of Government of Indonesia industrialization and downstreaming as effort to build a
Slide 20: Factor/Condition favorable for Industrial Estate Development (2)
Factor/Condition factorable for Industrial Estate Development (2) Indonesia FDI Investment in Nickel belt area; More Investment Outside Java (Sulawesi and Maluku, %to Total FDI) 46 35% 30% 30% 25% 26% 32 25% 21% 31 USD Bn 29 29 29 29 28 29 20% 16% 15% 11% 12% 9% 10% 8% 6% 5% 0% Source: BKPM2014 2015
Slide 21: What investors expect to invest in Indonesia and how JIIPE position itself?
What investors expect to invest in Indonesia and how JIIPE position itself? What Investors demand What JIIPE offers Providing fiscal and non-fiscal benefits through Ease of Doing Business Special Economic Zone awarded by Government and One-Stop Solution (OSS) from Indonesia Board of Investment (BKPM
Slide 22: Progress of JIIPE
Progress of JIIPE J une 2 0 12 J a nua ry 2 0 1 3 J a nua ry 2 0 1 4 J a nua r y 2 0 1 6 09 March 2018 2021 JIIPE Gresik Special Economic Zone which was ratified as PT Berkah Kawasan Manyar The construction of the PT BKMS obtained an The port managed by The JIIPE Industrial Estate was a Technology &
Slide 23: Current Development of JIIPE
Current Development of JIIPE Integrated Industrial and Port Estate offering World class facilities Jointly Developed with Indonesian Port authority Ownerships Business segment Subsidiary UEPN BJTI Industrial Estate BKMS 60% 40% Port BMS 40% 60% 28-Aug-23 23
Slide 24: Our Existing Tenants
Our Existing Tenants 28-Aug-23 24
Slide 25: BMS Port Expansion
BMS Port Expansion Expected to handle 10 million Metric tons of cargo JIIPE Port Jetty Cargo Handled by BMS 2,500,000 2,000,000 1,500,000 Ton 1,000,000 500,000 Jetty existing : 500 x 50 m Freeport Jetty with Total Capacity: Total Capacity: 5 Mn Tones/year (Ship Crane) 5 Mn Tonnes/year - 2016 2017 20
Slide 26: JIIPE SEZ offers significant fiscal and Non fiscal benefits
JIIPE SEZ offers significant fiscal and Non fiscal benefits Projected to Will create Attract Foreign employment Direct opportunity for Investment of USD 16.3 Billion 200,000 Jobs Vide Decree of the Chairman of the KEK National Council No. 1 of 2022 on November 8, 2022,KEK Special Economic Zone- alre
Slide 27: JIIPE Land Sales Accelerated in 2022
JIIPE Land Sales Accelerated in 2022 Targeting 70-75 Ha land Sales in FY2023 400 JIIPE cumulative land Utilization (HA) BKMS Revenue Growth in 3 years (IDR Bn) 350 332.1 1,800 312.5 300 268 250 185 185 HA 200 163 172 185 150 100 103 103 1,149 H1’23 52 52 147.1 50 24 83 127.5 536 613 52 52 60 69 0 24
Slide 28: World's Largest Single Line Copper Smelter Project at JIIPE
World's Largest Single Line Copper Smelter Project at JIIPE Opening up opportunities for the formation of an industrial ecosystem based on copper products Current Progress: 75% Expected Operational: May 2024 Largest single line copper smelter 28-Aug-23 28
Slide 29: Potential Investors and Strategic Investors
Potential Investors and Strategic Investors** Pipeline of Land Inquiries Total Foreseeable electricity and land requirement in each industry Petrochemical 200 HA 200 MW > 800 MW Steel 100 HA 200 MW Potential Power Base Metal Refinery 60 HA 147 MW Requirement Copper Manufacturer 60 HA 70 MW EV Batter
Slide 30: Monetization Strategy
Monetization Strategy Land Monetization Impact to AKR Gross Profit Contribution Land Total: 1,761 HA 2022 1H23 2027* Industrial estate, 14% Industrial Estate 19% Industrial estate, 33% Trading and Trading and distribution, distribution, Trading and 86% 67% Distribution 81% Total value of land in the
Slide 31: Creating Recurring Income and Superior Returns
Creating Recuring Income and Superior Returns** Projected Power Requirement BKMS Revenue Projection from Land sales and Utilities 1000 pln Internal Powerplant 800 16,000 14,000 600 MW 12,000 400 10,000 IDR bn 200 8,000 0 6,000 2021 2022 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 4,000 Projected
Slide 32: Green Industrial Estate Initiatives
Green Industrial Estate Initiatives Gas Power Plant Existing Solar Panel and Expansion Plan Zero Water Runoff Support Facilities 28-Aug-23 32
Slide 33: Strong & Leaner Balance Sheet
Strong & Leaner Balance Sheet 28-Aug-23
Slide 34: Balance Sheet Summary
Balance Sheet Summary Balance Sheet as at 30th June 2023 (in IDR billion) Assets Liabilities & Equity Current Assets Current Liabilities Cash and Equivalents 4,574 Trade Payables 5,749 Trade Receivables 6,133 Short term bank loans 10 Inventories 1,274 Current Maturities of LT bank loans 1,011 Indust
Slide 35: Stronger Working Capital and Leaner Balance Sheet
Stronger Working Capital and Leaner Balance Sheet Improving Current Ratio Consistent ROE and ROA ➢ AKR Current ratio shows 25.0% 21.0% consistent improvement over 21.9% 1.8 17.5% years from 1.4x in 4Q22 to 1.8x 20.0% 1.7 18.8% 1H23. 15.0% 1.5 10.0% 8.1% ➢ The working capital of 1H23 is 1.4 1.4 10.2%
Slide 36: Consistent Track record of Dividend payouts
Consistent Track record of Dividend payouts Interim Dividend 6M 2023 Dividend per Total Dividend payout Year share (IDR Bn) DPR (%) Div. Interim Dividend (IDR/share) Yield 2016 2017* 24 40 479 801 46% 47% 3% 6% IDR 50/share; IDR 986.9bn 2018* 48 963 67% 11% 2019 22 442 62% 9% 2020 25 494 53% 8% 2021
Slide 37: Outlook & ESG Initiatives
Outlook & ESG Initiatives 28-Aug-23
Slide 38: Petroleum Segment Outlook
Petroleum Segment Outlook Industrial Petroleum Retail Petroleum Dry season in 2H23 AKR bp Retail Fuel Outlet Rollout 350 50 Number of Outlet 36 300 Target 350 250 Outlets in 2 2030 Season Zone 200 2018 2022 2023B 150 Contribution from Retail Fuel 100 2022 2028 50 Retail 15% Retail 0 6% Industrial Be
Slide 39: Guidance 2023
Guidance 2023 BOD AKR released Guidance for FY 2023 with projection of Double-digit growth in Net Profit of the Company driven by sustained demand for Petroleum and chemical distribution from Industrial customers; Industrial land sales also budgeted to increase in 2023 2023 Guidance Expected EPS Net
Slide 40: AKR ESG Purpose & Goal
AKR ESG Purpose & Goal Vision The Leading Provider of Logistic Services and Supply Chain Solutions for Bulk Chemical & Energy Distribution in Indonesia → To be the leading company, AKR must continuously improve, adjust, can anticipate changes, do innovation to win competition Mision Optimizing Our P
Slide 41: Focus of AKR Supply Chain towards a Sustainable Future
Focus of AKR Supply Chain towards a Sustainable Future Supply Chain Innovation & Improve CO2 Reporting Sustainable Fuel Offering Optimization • Data Collection • Improvements to Supply Chain • Cleaner Fuel for Greener • Data Analysis of Supply Chain • Reduction of Carbon Foot Print Transition Emissi
Slide 42: Recognition of Our Sustainability Initiatives
Recognition of Our Sustainability Initiatives Proud to receive prestigious Emission Intensity ESG Rating & Indices Recognitions 0.044 “PLATINUM Grade for 0.036 Emission Disclosure (kgCO2 eq/Rp 2023” from Bumi Global Karbon and Investor 0.02 Daily from B Universe “The Best Company in the Oil & Gas Ca
Slide 43: Key Performance Highlights
Key Performance Highlights 43
Slide 44: Thank You
THANK Contact Details: Corporate Secretary YOU corporate.secretary@akr.co.id Investor Relation ir@akr.co.id AKR Tower Jl. Panjang No.5 Kebon Jeruk Jakarta Barat 11530 Indonesia http://www.akr.co.id/ 28-Aug-23
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