Pt Avia Avian Tbk · IDX:AVIA
Pt Avia Avian Tbk — Q2 2022 Earnings Presentation
24 slides from Pt Avia Avian Tbk's earnings presentation, 2022
Slide 1: PT Avia Avian Tbk Investor Presentation Q2 2022 Results
PT Avia Avian Tbk Investor Presentation Q2 2022 Results
Slide 2: Disclaimer
Disclaimer All investments is highly speculative in nature and involves substantial risk of loss. We encourage our investors to invest very carefully. We also encourage investors to get personal advice from your professional investment advisor and to make independent investigations before acting on
Slide 3: Avian Brands team
Avian Brands team Ruslan Tanoko Robert Tanoko Kurnia Hadi Andreas Hadikrisno Vice President Operations & Finance Director Head of Investor Director Development Relations Director ruslan.tanoko robert.tanoko kurnia.hadi investor.relations @avianbrands.com @avianbrands.com @avianbrands.com @avianbrand
Slide 4: Avian Brands Q2 2022 snapshot
Avian Brands Q2 2022 snapshot SALES GROSS PROFIT EBITDA NET PROFIT IDR 1.74 T IDR 718 B IDR 460 B IDR 392 B ( US$ 121 m ) ( US$ 50 m ) ( US$ 32 m ) ( US$ 27 m ) 41.3% 26.4% 22.5% C o n s u m e r s EMPLOYEES DISTRIBUTION COVERAGE CUSTOMERS CENTERS 37 Provinces 54,500+ 8,000+ 139 98 Cities Retail shop
Slide 5: Business update
Business update ▪ Inflation effects continue to impact businesses in Indonesia ▪ The government eased mobility curbs during Ramadan, marking the first time it had officially eased restrictions on holiday festivities in the last two years ▪ This lead to improvements in paint consumption prior to Rama
Slide 6: New product launched
New product launched ▪ Avitex Anti Viruz was launched in April 2022 ▪ This product is Green Label Singapore certified ▪ It has passed Coronavirus tests from the Analytical Lab Group (USA) as well as Airlangga University (Indonesia) ▪ More than 1500 shops have participated since its launch ▪ Press co
Slide 7: New product launched
New product launched ▪ In April 2022, No Drop Tape was launched ▪ Adding product variants to expand and strengthen the waterproofing segment ▪ Distinguishing feature against competitors’ products: can be painted with wall paint to blend in with its surrounding area ▪ More than 6,000 retail shops hav
Slide 8: Distribution centers expansion
Distribution centers expansion 139 Distribution centers spread across the nation: 105 wholly-owned DCs and 34 third-party DC Benefits from continued expansion of distribution centers: ▪ Improve product penetration and service quality ▪ Enhance inventory management and minimize loss opportunity ▪ Max
Slide 9: Consolidated business segment - sales
Consolidated business segment - sales Q2 sales by value H1 sales by value (IDR billion) (IDR billion) as % of total sales as % of total sales 26.2% 24.6% 22.6% 21.1% 22.9%(1) 48.2% 45.6% 44.0% 47.7% 44.5%(1) 1,740 3,379 3,234 1,395 1,433 1,342 1,296 2,585 2,468 2,522 2018 2019 2020 2021 2022 2018 20
Slide 10: Consolidated business segment - customers
Consolidated business segment - customers Q2 number of customers H1 number of customers 52,736 49,591 50,769 47,220 47,374 43,938 44,255 41,261 39,729 36,986 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 10
Slide 11: H1 2022 sales split by regions
H1 2022 sales split by regions 10.7% 12.6% 8.3% 6.7% 7.5% KALIMANTAN SULAWESI 5.3% REST OF INDONESIA SUMATRA 17.2% 21.9% JAWA 52.0% 57.8% ▪ Avian Brands sales split by regions vs. Indonesia GDP AVIA ▪ We are trailing Indonesia GDP in Jawa and Sumatra islands GDP(1) ▪ We are significantly ahead of In
Slide 12: Consolidated business segment
Consolidated business segment H1 2022 sales by segment H1 2022 sales by customers Trading Goods Modern Retail Outlets 18.0% 6.6% Supporting Product, 1.8% Furniture, 3.5% Pipe, 12.8% Wall, 22.9% Other, 8.1% Waterproofing, Woodcare, Wood & 24.8% 7.0% Metal; 19.2% Architectural Solutions Traditional Re
Slide 13: Consolidated business segment - margin
Consolidated business segment - margin Quarterly Gross margin 42.1% 40.3% 39.1% 41.7% 40.8% 41.3% 41.0% Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 H1 22 Quarterly EBITDA margin 28.5% 27.3% 29.3% 27.9% 27.1% 26.8% 26.4% Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 H1 22 Quarterly Net income margin 20.9% 21.2% 23.5%
Slide 14: Architectural solutions segment - sales
Architectural solutions segment - sales Q2 sales by value H1 sales by value (IDR billion) (IDR billion) as % of total sales as % of total sales 26.8% 25.8% 23.3% 21.2% 24.0%(1) 49.0% 47.3% 45.2% 49.0% 46.6%(1) 2,769 1,428 2,599 1,118 1,159 1,123 2,128 1,052 2,042 2,035 2018 2019 2020 2021 2022 2018
Slide 15: Architectural solutions segment - volume
Architectural solutions segment - volume Q2 sales by volume(2) H1 sales by volume(2) (metric ton) (metric ton) as % of total sales as % of total sales 27.8% 26.5% 23.6% 21.9% 23.7%(1) 50.2% 48.1% 45.5% 49.8% 45.6%(1) 91,805 45,853 45,322 86,684 45,050 82,883 82,152 76,094 40,417 39,492 2018 2019 202
Slide 16: Architectural solutions segment - customers
Architectural solutions segment - customers Q2 number of customers H1 number of customers 47,388 44,704 45,397 42,272 41,917 39,170 38,929 36,487 34,843 32,652 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 16
Slide 17: Trading goods segment - sales
Trading goods segment - sales Q2 sales by value H1 sales by value (IDR billion) (IDR billion) as % of total sales as % of total sales 23.4% 20.1% 20.0% 21.0% 18.7%(1) 44.4% 38.9% 39.7% 43.1% 36.6%(1) 310 312 635 610 236 245 487 224 456 426 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 (1) based
Slide 18: Trading goods segment - customers
Trading goods segment - customers Q2 number of customers H1 number of customers 42,474 40,409 38,015 36,396 34,298 34,904 32,367 29,372 29,707 24,980 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 18
Slide 19: Quarterly gross margin
Quarterly gross margin Architectural solutions segment 5%-7% 4%-6% 3%-8% 3%-5% Price increase Price increase Price increase Price increase (1 April) (1 October) (1 March) (1 May) 5%-7% (1 July ) Price increase (1 December) 47.5% 46.2% 46.4% 47.8% 45.1% 46.2% 45.6% Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22
Slide 20: Well-managed cost structure
Well-managed cost structure Cost Breakdown (as % of sales) 2018 2019 2020 2021 H1 22 G & A(1) 3.0% 3.5% 2.8% 2.7% 3.1% Continuous SG&A improvement Sales & Marketing(2) 15.1% 15.8% 16.0% 13.1% 14.1% COGS(3) 57.1% 58.6% 56.1% 58.3% 59.0% Total 74.4% 75.2% 77.9% 74.9% 76.2% Cost advantage through verti
Slide 21: COGS breakdown
COGS breakdown 2018 2019 2020 2021 H1 22 Raw materials 61.2% 51.8% 47.5% 58.2% 56.8% ~ 35% of raw material is Direct labor 1.9% 1.9% 2.1% 1.9% 1.9% imported Factory overhead 4.2% 3.7% 4.2% 4.2% 4.3% WIP and FG 21.9% 31.1% 33.8% 24.8% 24.0% BTL marketing 10.8% 11.4% 12.4% 11.0% 13.0% expenses Direct
Slide 22: Robust cash-flow generation
Robust cash-flow generation Trade working capital Free cash-flow (IDR billion) (IDR billion) as % of total sales as % of total sales 31.6% 29.9% 26.5% 27.2% 28,3%(1) 6.2% 14.0% 22.8% 16.6% 17,9% 1,844 1,910 1,306 1,694 1,123 1,617 1,519 927 877 789 719 776 793 520 504 360 288 367 605 1,001 1,166 1,1
Slide 23: Guidance for 2022
Guidance for 2022 Sales projection FY 22 ▪ Value growth 10 – 15% ▪ Volume growth 1 – 5% Planned actions in Q3 and Q4: ▪ Expansion of Distribution Centers will continue ▪ New product launch will take place as planned. Various sales & marketing strategies will be deployed to gain market share ▪ Comple
Slide 24: Indonesia decorative paints & coatings market size
Indonesia decorative paints & coatings market size Indonesia Decorative Paint and Coating by Product Category (IDR Trillion) Market growth slow-down due to Covid exceptional events (2019 pandemic Indonesia General Elections) 43.6 39.9 21F: 6.7 20A: +11.2% 36.4 33.0 6.2 1.9 (0.1%) 30.1 5.7 1.8 3.8 26