Pt Barito Pacific Tbk · IDX:BRPT
Pt Barito Pacific Tbk — PT Chandra Asri Petrochemical — UBS Indonesia Conference 2018
43 slides from Pt Barito Pacific Tbk's conference presentation, Mar 6, 2018
Slide 1: Company Presentation
UBS Indonesia Conference 2018 Company Presentation Jakarta - March 6th, 2018
Slide 2: Table of Contents
Table of Contents 1. Company Overview 2. Business Updates 3. Growth Projects 4. Financial Highlights 5. Appendix Key Investment Highlights Petrochemicals Industry Outlook 1
Slide 3: Company Overview
Chandra Asrt Petrochemical 1. Company Overview
Slide 4: Chandra Asri – Indonesia's Leading and Preferred Petrochemical Company
Chandra Asri – Indonesia’s Leading and Preferred Petrochemical Company Largest Integrated Petrochemical Producer in Indonesia Largest integrated petrochemical producer in Indonesia and operates the country’s only naphtha cracker, styrene monomer and butadiene plants Market leadership in highly attra
Slide 5: 25 Year Track Record of Successful Growth
25 Year Track Record of Successful Growth CAP 510m 2011 2015 Merger of CA and TPI 155m effective from 1 Jan 2011 Completed cracker expansion project and (US$) Adjusted 135m 2.1bn Completed de- bottlenecking to raise TAM 2017 polypropylene capacity to EBITDA 1.9bn 1.9bn 480 KT/A SCG Chemicals
Slide 6: Vision to be Indonesia's Leading and Preferred Petrochemical Company
Vision to be Indonesia’s Leading and Preferred Petrochemical Company 1 Increase capacity and build on leading market position Expand product offerings and further optimize integration along the 2 petrochemical value chain 3 Develop feedstock advantage to improve cost competitiveness 4 Develop and nu
Slide 7: Integrated Production of Diverse Products
Integrated Production of Diverse Products Use of Goods (examples) Capacity (KT/A) Capacity (KT/A) Polyethylene (336) Naphtha Ethylene (860) Styrene Naphtha Monomer (340) consumption of 2,450 KT/A at full Merchant capacity market (430) Propylene (470) Polypropylene (480) Pyrolysis Gasoline (400) Mi
Slide 8: CAP is Indonesia's Largest Petrochemical Producer
CAP is Indonesia’s Largest Petrochemical Producer Capacities of Petrochemical Producers in Indonesia (March 2017) Capacity ('000 tons per year) Polytama Others Total Ethylene 860 860 Propylene 470 608 1,078 LLDPE 200 200 400 HDPE 136 250 386 Polypropylene 480 45 240 765 Ethylene Dichloride 644 370 1
Slide 9: Strategically Located to Supply Key Customers
Strategically Located to Supply Key Customers CAP’s Integrated Petrochemical Complexes Rhone Poulenc SBL Sulfindo Adi. Sulfindo Adiusaha EDC, VCM NAOH, CL2 Santa Fe Sulfindo Adi. PVC Showa Esterindo Redeco Styrene Monomer Polychem Plant Puloampel- Cont Carbon CB Sintetikajaya Trans Bakrie Capacity 3
Slide 10: CAP is the Indonesian Market Leader
CAP is the Indonesian Market Leader 1 Largest Petrochemical Company in Indonesia(1) Olefin Top 10 South East Asia Producers(3) ('000 tons per year) Olefin Polyethylene 5,000 4,000 3,000 7 Pertamina CAP LCT(2) CAP 2,000 24% 24% 1,000 52% 31% 0 PTTGC SCG PCG Pertamina ExxonMobil IRPC Shell/QPI Lotte C
Slide 11: Business Updates
Chandra Asrt Petrochemical 2. Business Updates
Slide 12: Continuing healthy product spreads despite increasing feedstock price
Continuing healthy product spreads despite increasing feedstock price (US$/MT) 1,500 1,200 900 600 300 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018F 2018F 2018F 2018F Ethylene Polyethylene Naphtha Polypropylene Note: Forecasted price based on IHS 2 March 2018 11
Slide 13: Strong Track Record of Delivering Operational Excellence and Performance
Strong Track Record of Delivering Operational Excellence and Performance Naphtha Cracker Utilization(1) TAM/ Expansion tie-ins: Q4/2015 103% 99% 99% 100% 99% 102% Ramp-up of new capacity: Q1/2016 97% 90% 92% 74% 76% 66% 65% 57% 11% 2015 2016 2017 2017 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016
Slide 14: Production and Sales Volumes
Production and Sales Volumes Naphtha Cracker Polyethylene Plant (KT) (KT) 855 329 320 327 316 771 224 227 450 381 339 82 2015 2016 2017 2015 2016 2017 Prod Sales Prod Sales Polypropylene Plant Styrene Monomer Plant Butadiene Plant (KT) (KT) (KT) 449 451 356 349 444 440 117 118 428 427 276 276 88 85
Slide 15: Growth Projects
Chandra Asrt Petrochemical 3. Growth Projects
Slide 16: Strategic Growth via Expansion and Debottlenecking (Excluding Second Petrochemical Complex)
Strategic Growth via Expansion and Debottlenecking (Excluding Second Petrochemical Complex) SSBR PE expansion C2, C3, MTBE operation, BD & PP Debotlenecking and Butene-1 expansion 2016 – 2020 CAGR: 6.2% C2: ∆40KT C3: ∆20KT PE: ∆400KT SSBR: ∆120KT MTBE: ∆130KT PP: ∆110KT BD: ∆37KT B1: ∆43KT After dou
Slide 17: Strategic Growth via Expansion and Debottlenecking
Strategic Growth via Expansion and Debottlenecking Increase Production Capacity Butadiene Plant Expansion New Polyethylene Plant Furnace Revamp Increase BD capacity by 100 KT/A to 137 KT/A New facility of total 400 KT/A to produce LLDPE, Increase cracker capacity by modifying heat Rationale:
Slide 18: Capital Expenditure Plan to Pursue Value-Accretive Growth
Capital Expenditure Plan to Pursue Value-Accretive Growth Capex Plans Breakdown by Year 2017 – 2020 (US$m) Sources of Funding 568 Internal generated cash flows 536 Proceeds from Rights Issue 207 333 30 Bond proceeds 104 223 26 77 17 68 - 114 47 35 - 165 8 15 17 1 22 70 63 70 2- 17 18 27 - - 20
Slide 19: Financial Highlights
Chandra Asrv Petrochemical 4. Financial Highlights
Slide 20: Resilient Revenue Driven by Diverse Product Portfolio and Increased Volumes
Resilient Revenue Driven by Diverse Product Portfolio and Increased Volumes Revenue by Product Segments Sales Volume (US$m) (KT) 2,137 2,419 117 7 1,908 252 85 349 1,930 277 7 433 139 439 289 427 1,378 1,173 4 46 78 943 230 256 327 885 316 7 260 449 236 187 869 153 783 227 610 0 450 107 381 171 32 8
Slide 21: Strong Financials Further Enhanced by Economies of Scale
Strong Financials Further Enhanced by Economies of Scale Gross Profit Adjusted EBITDA (unaudited) (US$m) 494 545 Adjusted EBITDA 11% 26% 23% +239% margin yoy 510 550 (US$m) +229% yoy 146 155 2015 2016 2017 2015 2016 2017 Net Profit Cashflow from Operations, Capex (US$m) Net Profit 2% 16% 13% Margin
Slide 22: Strong Balance Sheet Supported by Financial Profile Strengthening
Strong Balance Sheet Supported by Financial Profile Strengthening Cash Balance Debt and Net Debt (US$m) (US$m) 843 633 548 451 425 299 126 *Net cash 97 position of USD$210m 2015 2016 2017 2015 2016 2017 Adjusted EBITDA / Finance Costs (1) Leverage Ratios (2) (x) 16.0x 15.3x 3.5x 0.8x 1.1x 2.9x 6.9x
Slide 23: Appendix
Chandra Asrt Petrochemical Appendix
Slide 24: Key Investment Highlights
Key Investment Highlights 23
Slide 25: Key Investment Highlights
Key Investment Highlights 1 Attractive industry outlook Well-positioned to benefit from attractive Indonesian growth 2 fundamentals Indonesia’s leading petrochemical producer with a diverse 3 product portfolio 4 High degree of operational integration Diversified customer base and strategically locat
Slide 26: Attractive Industry Fundamentals Providing Tailwinds for Petrochemicals Demand Growth in SEA
1 Attractive Industry Fundamentals Providing Tailwinds for Petrochemicals Demand Growth in SEA Polyolefins Demand in SEA Expected to Outpace Global Market Growth… Polyolefin Spreads Expected to Remain Resilient (US$/t) Polyethylene consumption growth (2017 – 2023E CAGR) 850 4.4% 800 3.4% 3.9% 750 70
Slide 27: Well-Positioned to Benefit from Attractive Indonesian Macroeconomic Growth
2 Well-Positioned to Benefit from Attractive Indonesian Macroeconomic Growth and Consumption Trends GDP Growth CAGR (2017 – 2020F)(1) Polyolefins Consumption per Capita(2)(3)(4) 10% 7.7% Bubble size indicates 6.8% demand in 2016, million tons Projected CAGR 2017-2023F 6.3% 6.2% 8% 5.4% India 9 4.8%
Slide 28: Strong Demand Growth for Petrochemical Products in Indonesia
2 Strong Demand Growth for Petrochemical Products in Indonesia Total Demand Growth (1) End Markets (2017F – 2023F CAGR) Plastic films Containers 4.4% Polyethylene PE Bottles 3.4% Plastic bags Packaging Films and sheets 4.7% Polypropylene Fibers and filaments PP 3.6% Toys Automotive
Slide 29: Increasing Gap Between Supply and Demand in Indonesia
2 Petrochemical Market in Indonesia will Continue to See an Increasing Gap Between Supply and Demand Ethylene Propylene Polyethylene (KT/A) 2,357(1) (KT/A) (KT/A) 1,900(1) 1,078 1,078 1,078 1,824 1,625 1,638 1,658 899 1,317 1,384 811 876 1,231 1,231 860 890 900 833 (457)(1) 267 202 179 (484) (394) (
Slide 30: CAP is the Indonesian Market Leader
3 CAP is the Indonesian Market Leader 1 Largest Petrochemical Company in Indonesia(1) Olefin Top 10 South East Asia Producers(3) ('000 tons per year) Olefin Polyethylene 5,000 4,000 3,000 7 Pertamina CAP LCT(2) CAP 2,000 24% 24% 1,000 52% 31% 0 PTTGC SCG PCG Pertamina ExxonMobil IRPC Shell/QPI Lotte
Slide 31: Highly Integrated Production Process with Operational Flexibility
4 Highly Integrated Production Process with Operational Flexibility Cogen Naphtha cracker, polyethylene and butadiene plants Naphtha Cracker Fuel Gas 51.56MW GTG source approximately half of the power from PLN and & 31.25MW STG the remaining half from the GTG, with the STG being used HDPE & LLDPE
Slide 32: Strategically Located to Supply Key Customers
5 Strategically Located to Supply Key Customers CAP’s Integrated Petrochemical Complexes Rhone Poulenc SBL Sulfindo Adi. Sulfindo Adiusaha EDC, VCM NAOH, CL2 Santa Fe Sulfindo Adi. PVC Showa Esterindo Redeco Styrene Monomer Polychem Plant Puloampel- Cont Carbon CB Sintetikajaya Trans Bakrie Capacity
Slide 33: Diversified Client Base of Industry Leaders
5 Diversified Client Base of Industry Leaders Sales & Marketing Strategy Top 10 Customers (2017) % of Customer Customer Products Location Long term relationships with key customers Revenue Since Connected to production facilities via CAP’s pipeline (ethylene and Customer 1 Polyethylene, 7.53% 19
Slide 34: Stable and Flexible Feedstock Supply
6 Stable and Flexible Feedstock Supply Feedstock Procurement Overview Main Raw Materials (2017) Long-standing stable supplier relationships Naphtha/ 100% No material feedstock supply disruption historically Condensate Flexibility in feedstock purchasing (spot vs. contract) Benzene 100% − Avoid
Slide 35: Strong Commitment from Shareholders
7 Strong Commitment from Shareholders Shareholder Structure (as of 31 Dec 2017) Prajogo Marigold Public Pangestu(1) Resources(2) 41.51% 14.75% 4.75% 30.57% 8.42% Barito Pacific Key benefits of partnership Indonesia based conglomerate with business interests in property, Barito Pacific is committ
Slide 36: Strong Management Team with Substantial Industry Experience
8 Strong Management Team with Substantial Industry Experience Board of Commissioners DJOKO SUYANTO TAN EK KIA HO HON CHEONG AGUS SALIM LOEKI SUNDJAJA CHAOVALIT CHOLANAT President Commissioner VP Commissioner Commissioner, PANGESTU PUTERA EKABUT(1) YANARANOP(1) Independent Independent Independent Com
Slide 37: Strong Success of Both Vertical and Horizontal Expansion
8 Strong Success of Both Vertical and Horizontal Expansion (KT/A) Successfully acquired and integrated SMI and TPI Cracker Merger with expansion & TPI & BD Plant Cracker Acquisiton Increase PE operation expansion of SMI Capacity Expanded naphtha cracker in 2015 to achieve economies of scale and
Slide 38: Petrochemicals Industry Outlook
Petrochemicals Industry Outlook 37
Slide 39: Ethylene World Supply Growth and Capacity
Ethylene World Supply Growth and Capacity Ethylene World Supply Growth (million tons) (Operating rates) 250 Actual Forecast 100% 200 90% 150 100 80% 50 0 70% 2009 2011 2013 2015 2017 2019 2021 2023 Ethylene Consumption Total Capacity (with Unsactioned Capacity) Total Capacity (with No Unsactioned Ca
Slide 40: The Petrochemical Industry is in a Long Term Cyclical Phase
The Petrochemical Industry is in a Long Term Cyclical Phase Ethylene Spreads Over Naphtha Gap over naphtha (US$/t) % Utilisation 700 100% 600 Average 2013-2016: US$567 Average 2017-2019: US$568 90% 500 Average 2020-2023: US$424 400 80% Average 2009-2012: US$306 300 200 70% 100 0 60% 2009 2010 2011 2
Slide 41: Strong Demand Growth for Petrochemicals in Indonesia
Strong Demand Growth for Petrochemicals in Indonesia Ethylene (CAGR ’17 – ’23) Propylene (CAGR ’17 – ’23) Butadiene (CAGR ’17 – ’23) 3.2% 3.1% 5.4% 17.7% 2.4% 3.4% 1.7% 5.5% 2.4% Global SEA Indonesia Global SEA Indonesia Global SEA Indonesia Polyethylene (CAGR ’17 – ’23) Polypropylene (CAGR ’17 – ’2
Slide 42: Prudent Financial Policies
Prudent Financial Policies Maintain natural economic hedge as underlying sales and majority of costs and borrowings are denominated in US$ Foreign Exchange Treasury risk management on Rupiah currency risks: − Sales are hedged via pricing to customers and forward swaps with reputable banks − Mini
Slide 43: Chandra Asri Petrochemical
Chandra Asrt Petrochemical Address: Contact: PT Chandra Asri Petrochemical Tbk Investor Relations Wisma Barito Pacific Tower A, Lt. 7 Email: JI. Let. Jend. S. Parman Kav. 62°63 é el: +62 21 530 7950 Jakarta 11410 Fax: +62 21 530 8930 al Visit our website at te % | f Important Notice * This document
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