Pt Krakatau Steel (persero) Tbk Class B · IDX:KRAS
Pt Krakatau Steel (persero) Tbk Class B — FY2011 Earnings Presentation
20 slides from Pt Krakatau Steel (persero) Tbk Class B's earnings presentation, Mar 15, 2012
Slide 1: Analyst Meeting
Analyst Meeting PT Krakatau Steel (Persero) Tbk. KANTOR PUSAT Jl. Industri No. 5 P.O. Box 14 Cilegon, Banten 42435 Telepon : (+62 254) 392159, 392003 (Hunting) Faksimili : (+62 254) 372246 KANTOR JAKARTA Gedung Krakatau Steel, Lantai 4 Jl. Jend. Gatot Subroto Kav. 54 Jakarta Selatan 12950 Telepon :
Slide 2: Disclaimer
Disclaimer This document has been prepared by PT Krakatau Steel (Persero) Tbk. (“Krakatau Steel” or the “Company”) and may not be taken away, reproduced or redistributed, in whole or in part, to any other person without the prior written consent of the Company. This document is intended for financia
Slide 3: Agenda
Agenda 1. Overview 2. 2011 Results 3. Strategic Projects 4. Indonesian Steel Market 3
Slide 4: Section 1: Overview
KRAKATAU STEEL SECTION 1 OVERVIEW
Slide 5: Highlights
Highlights Unit FY2010 FY2011 Chg (%) Production (HRC) Million tons 1.504 1.761 17.1 Sales volume Million tons 1.914 2.068 8.0 Average selling price (HRC) Rp/kg 6,938 7,555 8.9 Revenue 14,940 17,915 19.9 Cost of revenues 12,672 16,317 28.8 Net profit 1,061 1,023 3.6 EBITDA 1,781 1,152 35.3 Assets Rp
Slide 6: Key Issues
Key Issues Iron Ore Pellets and Gas Prices Iron ore pellets prices increased 41.5% Year-on- Year (YoY), resulting in higher cost of revenues by 28.8% YoY. Uncertainties arising from the pricing of iron ore pellets, which is conducted on a quarterly basis, have continued to put pressure on the comp
Slide 7: Section 2: 2011 Results
KRAKATAU STEEL SECTION 2 2011 RESULTS
Slide 8: Financial results
Financial results In billions of rupiah, except for earnings per share Description FY 2010 FY 2011 Change (%) Income Statement Net Revenues 14,940 17,915 19.9 Cost of Revenues 12,672 16,317 28.8 Gross Profit 2,269 1,599 -29.5 Operating Profit 1,027 359 -65.1 EBITDA 1,781 1,152 -35.3 Net Income 1,061
Slide 9: Operating results
Operating results Production Capacity Utilization Production In thousands of tpy Product FY 2010 FY 2011 Change (%) Sponge Iron 1,274 1,228 -3.6 Slab Steel 1,084 1,014 -6.5 Hot Rolled Coil 1,504 1,761 17.1 Cold Rolled Coil 415 414 -0.2 Wire Rod 201 238 18.4 Steel Bar 114 121 5.9 Steel Section 76 81
Slide 10: Marketing results
Marketing results Sales Volume Average HRC Price (1) Sales Volume Tons Product FY 2010 FY 2011 Change (%) Hot Rolled Coil 958,041 1,053,784 10.0 Cold Rolled Coil 421,508 405,435 -3.8 Wire Rod 201,318 227,399 13.0 Steel Bar 174,601 186,421 6.8 Steel Section 98,360 100,008 1.7 ERW & Spiral Pipes 60,30
Slide 11: Section 3: Strategic Projects
SECTION 3 STRATEGIC PROJECTS 11
Slide 12: Progress of strategic projects
Progress of strategic projects As of 29 February 2012 No. Project Status Progress 1. Revitalization of Existing Production Facilities a. Hot Strip Mill (HSM) - Work is conducted by Pomini, Tenova, and Consortium SMS Demag AG, Siemens AG, Siemens Indonesia, Lykmas Jaya. - The revitalization project w
Slide 13: Progress of strategic projects (cont'd)
Progress of strategic projects (cont’d) As of 29 February 2012 No. Project Status Progress 5. Infrastructure Development a. Port development to support - Technical review. Completion in 2013 Blast Furnace and JV Krakatau – POSCO b. Power plant development - Work is conduted by Consortium Imeco and P
Slide 14: Section 4: Indonesian Steel Market
SECTION 4 INDONESIAN STEEL MARKET 14
Slide 15: Domestic & regional market overview
Domestic & regional market overview The ongoing debt crisis in Europe had no significant impact on the Asian steel market but eventually depressed international prices. Nonetheless, steel demand in Indonesia remained strong last year and is expected to continue growing in 2012, triggered by the co
Slide 16: Indonesia's steel demand
Indonesia’s steel demand Finished steel consumption in Indonesia Local supply shortage Total finished steel consumption tonnes (m) % of 47% 56% 46% 54% 53% imports Domestic supply gap Source: SEAISI Indonesia’s steel demand drivers Mining, oil & gas development which Mining Sector requires plates,
Slide 17: Leadership in the Indonesian market
Leadership in the Indonesian market HRC CRC Wire rod in Indonesia (2011) Market share 24% 25% 41% Others Others 76% 75% Others 52% Total demand: 3.6 million tons Total demand: 1.7 million tons Total demand: 0.9 million tons Production capacity (2011) (mtpy) (mtpy) (mtpy) Source: CRU Strategies, Comp
Slide 18: Strong and diversified customer base
Strong and diversified customer base High proportion of direct sales(1) Low customer concentration Diverse end-markets Proportion of direct sales to Top 5 customers of steel sales Automotive HRC total steel sales in 2011 in 2011 Mechanical A engineering and boiler 6% B pressure vessels 5% C Ge
Slide 19: Enhance marketing channel and trade barriers
Enhance marketing channel and trade barriers Enhance marketing channel Trade barriers New Market Focus More Services Existing barriers Shipbuilding projects Increase in product sales to SNI – mandatory standard (HRC, CRC, Rebar, automotive segment through galvanised sheet, galvalume sheet) I
Slide 20: Thank You
KRAKATAU STEEL THANK YOU
PT Krakatau Steel (Persero) — FY2011 Earnings Presentation on 6ix