Pt Inocycle Technology Group Tbk · IDX:INOV
Pt Inocycle Technology Group Tbk — Q3 2019 Earnings Presentation
40 slides from Pt Inocycle Technology Group Tbk's earnings presentation, Nov 1, 2019
Slide 1: Turning Waste Into Resources - 3Q19 Investor Presentation
TURNING WASTE INTO RESOURCES 3Q19 Investor Presentation PT Inocycle Technology Group Tbk (“INOV”) Jakarta, 1 November 2019
Slide 2: Table of Contents
TABLE OF CONTENTS Company Overview 3 Our Raw Material 10 Products & Plants 14 3Q19 Financial Highlights 22 Key Investment Highlights 27 2
Slide 3: Company Overview
We Turn Waste Into Resources Company Overview 3 3
Slide 4: Vision, Mission & Values
Vision, Mission & Values VISION “To become the Biggest Sustainable Eco-friendly Recycled Fiber Company that produces world-class quality product.” MISSION • To produce world class eco polyester fiber with industry professionals • To expand business through Plastic Pay across Indonesia in a sustainab
Slide 5: Business Overview
Business Overview The company's main business is the production and sales of recycle polyester staple fiber (Re-PSF). It purchases waste PET bottles as its main raw material and directly produces into bottle flake, which is used as raw material for Re-PSF. Re-PSF accounts for about 75% of total sale
Slide 6: Shareholder's Composition
Shareholder’s Composition 99,99% PT Hilon Indonesia PT Samudera Industri Sandiana Soemarko Public HSBC – Fund Service A/C 45.54% 20.83% 11.24% 16.07% 6.32% 52,40% PT Urecel Indonesia 45,80% Data per: 3Q19 6
Slide 7: Inocycle at a Glance
Inocycle at a Glance PT Inocycle Technology Group ("Inocycle") was established in 2001, under the name of PT Hilon Felt with its first factory in Tangerang. Inocycle is part of the Hilon Indonesia group, which is one of the largest integrated Non Woven producers in Indonesia with more than 40 years
Slide 8: Key Milestones
Key Milestones Expansion of Mojokerto plant with total annual fiber production capacity of 13,200 PT Hilon Felt tons and Indonesia was Tangerang plant established, start to produce with its first fiber with total factory in Expansion of annual production Karanganyar Tangerang Karanganyar capacity of
Slide 9: Management Team
Management Team Jung Hyo Choi Dr. Ir. Widhyawan Prawiraatmadja President Commissioner Independent Commissioner Jaehyuk Choi Yoon Chong Hyun Seung Koo Yang President Director Finance Director Director Wonhyuk Choi Victor Choi Suhendra Setiadi Director Director Business Dev. Director 9
Slide 10: Our Raw Material
CHAPTER 2: Products & Distribution Products, Distribution & Plants Our Raw Material 10
Slide 11: How Re-PSF is different with Virgin PSF
How Re-PSF is different with Virgin PSF To produce Fiber or Re-PSF products, Inocycle uses Recycled PET (Polyethylene terephthalate) bottle as its main raw material, where virgin PSF use crude oil. The raw materials can be in form of bottles or flakes. While the raw material for Non Woven products a
Slide 12: Raw Materials (Cont'd.)
Raw Materials (Cont’d.) (In IDR) Average Purchase Price of Waste PET Bottle 8000 7000 6000 5000 4000 3000 2000 1000 0 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Apr-14 Apr-13 Jan-14 Apr-15 Apr-16 Apr-17 Apr-18 Jan-13 Jan-15 Jan-16 Jan-17 Jan-18 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 The purchase p
Slide 13: Polyester Staple Fiber Manufacturing Process
Polyester Staple Fiber Manufacturing Process PET Bottle Recycle Staple Fiber Operation Production Waste PET Drying Sorting Spinning Crushing Stretching Setting & Washing Cutting Bottle Flake Bale Packing 13
Slide 14: Products & Plants
CHAPTER 2: Products & Distribution Products & Plants 14
Slide 15: Recycle Polyester Staple Fiber Product (Re-PSF)
We turn Polyethylene Terephthalate (PET) waste Recycle Polyester Staple bottles into Product (“Re-PSF”). We are the only company in Indonesia that is certified to the Global Recycled Standards (GRS) in this process. Re-PSF is the core of many and diverse industry’s raw material ranging from automoti
Slide 16: Inocycle Product - Fiber
Inocycle Product - Fiber Plant Location and Fiber produced by Inocycle are of high quality that can be used for pillows, dolls, Production Capabilities bedding, furniture, carpet/automotive interior and non-woven/woven products. The fiber produced by Inocycle can be divided into three types: Hollow
Slide 17: Product - Fibers
Product - Fibers Diverse Re-PSF from Waste Bottle to Our Customer’s Product From Transparent Waste Bottles From Green Waste Bottles From Blue Waste Bottles Filling for Jacket, Toys, Pillow, Shoes, Automotive, Etc. 17
Slide 18: Inocycle Product – Non Woven
Inocycle Product – Non Woven Plant Location and In addition to Fiber, Inocycle directly produce and sell Geotextile non-woven products which are made using Re-PSF. Non Woven Geotextile itself is a product Production Capabilities used in various industries such as mining, construction, agriculture, m
Slide 19: Product – Non-Woven
Product – Non-Woven Non-Woven Products from Re-PSF and its Diverse Functions Non-Woven Geotextile for Construction Non-woven for Cars • Non-woven Products can be used for various industries such as garments, automotive and homewares. • Geotextile Non-woven can be used for concrete curing, constructi
Slide 20: Inocycle Product – Bedding
Inocycle Product – Bedding Inocycle also produce some household items such as bedclothes that are made from Re-PSF. Inocycle has established vertical integration that covers upstream Plant Location and and downstream business of PSF, and it has shown stable business activities. Production Capabiliti
Slide 21: Product - Bedding
Product - Bedding As Smooth As Cloud Pillow Blanket Under brand Hippo, we create and sell home ware products. Bolster Mattress 21
Slide 22: 3Q19 Financial Highlight
~ Se <i i 3Q19 Financial Highlight
Slide 23: 3Q19 Financial Highlight
3Q19 Financial Highlight Revenue Operating Profit Net Profit 380 298 48 24 23 5 9M18 9M19 9M18 9M19 9M18 9M19 Revenue Breakdown 299 301 237 150 112 64 66 59 30 23 26 0.1 29 1.5 18 1.6 2016 2017 2018 9M19 Fiber Non Woven Homeware Others Expressed in billion IDR 23
Slide 24: 3Q19 Revenue Breakdown & Composition
3Q19 Revenue Breakdown & Composition 28% yoy IDR 298 / 100% IDR 380 / 100% IDR 0.3 / 0.1% 477% yoy IDR 6 / 0.4% IDR 24 / 8% -23% yoy IDR 18 / 4.8% IDR 53 / 18% 12% yoy IDR 59 / 15.6% Others 36% yoy Home Ware IDR 220 / 74% IDR 301 / 79.2% Non Woven Fiber 9M18 9M19 Expressed in billion IDR 24
Slide 25: 3 Years Financial Trend
3 Years Financial Trend Asset Liability Equity 712 573 380 333 375 414 406 240 264 150 135 166 2016 2017 2018 9M19 2016 2017 2018 9M19 2016 2017 2018 9M19 Revenue Net Profit Operating Profit 327 396 380 24 46 48 315 15 16 29 7 21 2016 2017 2018 9M19 2016 2017 2018 9M19 2016 2017 2018 9M19 Expressed
Slide 26: Financial Ratios
Financial Ratios ROA & ROE Debt to Equity & Debt to Asset Operating Margin & Net Profit Margin 244% 10% 10% 178% 176% 114% 12% 13% 7% 9% 5% 4% 7% 6% 2% 3% 3% 64% 64% 71% 53% 5% 4% 2% 2016 2017 2018 9M19 2016 2017 2018 9M19 2016 2017 2018 9M19 ROA ROE Debt to Equity Debt to Asset Operating Margin Net
Slide 27: Key Investment Highlights
Key Investment Highlights 27
Slide 28: Key Investment Highlights
Key Investment Highlights 01 Growing Markets with Opportunities from Domestic and Global Condition 02 The Largest Hollow Conjugated Re-PSF Producer In Indonesia Full Support From Parent Company 03 04 Robust Relationship With Customers High Barriers To Entry 05 28
Slide 29: Growing Markets with Opportunities from Domestic Demand and Global Condition
Growing Markets with Opportunities from Domestic 1 Demand and Global Condition Indonesia Polyester Staple Fiber is recognized as one of the Estimated Indonesia Non-Woven Automotive Consumption best quality products. (in Kilotons) The demand for the staple fiber in Indonesia is estimated to 21.4 incr
Slide 30: Growing Markets with Opportunities (Cont'd)
Growing Markets with Opportunities from Domestic 1 Demand and Global Condition (Cont’d) Indonesia Non-Woven Building/Roof Consumption (in Indonesia Infant and Adults Above 70 years Old Population Kilotons) Estimation 12.5 6.9 34.5 5.6 33.9 33.4 32.5 32.9 31.6 32.0 3.2 31.1 30.3 30.7 2015 2016 2017 2
Slide 31: Growing Markets with Opportunities (Cont'd)
Growing Markets with Opportunities from Domestic 1 Demand and Global Condition (Cont’d) Polyester Contributed 77% of the Total Apparel Non-Woven Upholstery/Beddings Material The application of the PSF as Consumption 8.60% 1.50% the substitution to the cotton 34.4 12.90% in the apparel market is esti
Slide 32: Growing Markets with Opportunities (Cont'd)
Growing Markets with Opportunities from Domestic 1 Demand and Global Condition (Cont’d) China Re-PET Import in 2016 - 2017 In 2018, China has announced the policy to ban 300 import of 32 types of waste and scrap material 250 including waste PET bottle and also PET bottle flakes. The regulation in Ch
Slide 33: The Largest Hollow Conjugated Re-PSF Producer in Indonesia
2 The Largest Hollow Conjugated Re-PSF Producer in Indonesia With an annual production capacity of 33,600 Tons, Inocycle is the largest Hollow Conjugated Re-PSF Producer in Indonesia. Production Capacity Company Re-PSF Type Main Sales Channel Quality Level Annual (Tons) Inocycle 33,600 HC Domestic-E
Slide 34: Full Support from Parent Company
3 Full Support from Parent Company Inocycle is part of the Indonesian Hilon Group which has more than 40 years of experience in the Re-PSF processing industry, with its main product being Non Woven. Hilon Indonesia is a brand that is well known and has reliable quality. Hilon Indonesia has factories
Slide 35: Hilon Group Structure
Hilon Group Structure 45.54% 20.83%
Slide 36: Hilon Group Network
Hilon Group Network 36
Slide 37: Robust Relationship with Key Customers
4 Robust Relationship with Key Customers Inocycle and Hilon Group have abundant knowhow and experience in product production, so that stable and efficient quality maintenance and production activities are possible and meet customer satisfaction. More than 20 years of relationship 37
Slide 38: High Barriers to Entry
5 High Barriers to Entry Inocycle is the largest producer of Hollow Conjugated Re-PSF in Indonesia, with two other competitors who have smaller capacity and quality under Inocycle. The lack of Re-PSF producers in Indonesia is caused by several things. Efforts to obtain a significant amount of PET bo
Slide 39: Disclaimer
DISCLAIMER The information contained in this presentation material has been taken from sources which we deem reliable. However, none of PT Inocycle Technology Group Tbk and/or its affiliated companies and/or their respective employees makes any representation or warranty (express or implied) or acce
Slide 40: Corporate Secretary and Investor Relations
Corporate Secretary PT Inocycle Technology Group Tbk info@inocycle.com ; corp.secretary.inocycle@gmail.com i Investor Relations PT Inocycle Technology Group Tbk ir_inov@yahoo.com www.inocycle.com 40
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