Slide 1: A Leading Indonesian Energy Group
A LEADING INDONESIAN ENERGY GROUP Barito Pacific | Company Presentation 2 March 2021 #Impact Beyond Returns
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the management of PT Barito Pacific Tbk. (“Barito Pacific” or the “Company”) for information purposes and contains general background information about Barito Pacific group including forward-looking statements on its business, financial condition and
Slide 3: Overview of Barito Pacific Group
OVERVIEW OF BARITO PACIFIC GROUP 3
Slide 4: Barito Pacific at a Glance
Barito Pacific at a Glance ● Listed on the IDX since 1993, Barito Pacific has a market capitalization of c.US$5.9bn as at 31 January 2021 ● Barito Pacific’s largest shareholder is Prajogo Pangestu with a 71.64% stake as at 31 January 2021 Petrochemicals Energy Property and Others 66.67% 34.00%(2) 10
Slide 5: Barito Pacific at a Glance: key assets located in Java
Barito Pacific at a Glance … with the Group’s key assets strategically located in Java Wisma Barito Pacific Office complex in West Jakarta with GFA of 38k sqm Wisma Barito Pacific Chandra Asri Petrochemical Particle Board (“CAP”) Java 9 & 10 Manufacturing Evaluating second petrochemical complex. Ham
Slide 6: World class partners in every business
World class partners in every business Energy Petrochemicals Partners Partners ■ Acquired 33.33% stake in Star Energy for a total consideration of US$357m ■ Acquired 30% stake in CAP in 2011 in July 2017 ■ Currently owns a 30.57% stake in CAP ■ Sharing of technical and operational expertise ■ Partne
Slide 7: Petrochemical
Barito Pacific } Petrochemical
Slide 8: Chandra Asri at a Glance: Largest and the only integrated petrochemical producer in Indonesia
Chandra Asri at a Glance: Largest and the only integrated petrochemical producer in Indonesia Largest Integrated petrochemical producer in Indonesia and operates the Vital National Object status country’s only naphtha cracker and the only producer of Styrene Monomer, Transformed in 2016 follow
Slide 9: Strategically Located to Supply Key Customers
Strategically Located to Supply Key Customers CAP’s Integrated Petrochemical Complex BASF Indonesia Styrene Monomer Plant Sulfindo Adi Usaha. EDC, VCM Redeco Petrolin Utama Styrene Monomer Plant Gajah Tunggal Tbk -SBR Capacity 340 KT/A Polychem Indonesia Tbk. Merak Location proximity and well Integr
Slide 10: Integrated Production of Diverse Products
Integrated Production of Diverse Products . 10
Slide 11: Production Capacity Growth of Chandra Asri
Production Capacity Growth of Chandra Asri CAP Capacity Expansion (in KTPA) Cracker BD plant Merger with expansion & BD plant Cracker expansion & PE MTBE and TPI & increase acquisition operation expansion SSBR Synthetic Expansion Butene-1 PE capacity of SMI Rubber 4.232 4.232 4.061 171 603 MTBE: Δ12
Slide 12: CAP is the Company's Market Leader for its Product Portfolio in Indonesia
CAP is the Company’s Market Leader for its Product Portfolio in Indonesia and a leading player in the region 12
Slide 13: Chandra Asri – Largest and most integrated petrochemical producer in Indonesia
Chandra Asri – Largest and most integrated petrochemical producer in Indonesia CAP offers the most diverse product range and is a dominant producer with ~40% of the country’s petrochemical capacity Capacity ('000 tons per year) (%) Others Total Ethylene 100% 900 - - - - - - - 900 Propylene 44% 490 -
Slide 14: Strong Track Record of Operational Performance
Strong Track Record of Operational Performance Ethylene Polyethylene Polypropylene (1) (1) (1) 96% 95% 102% 110% 89% 91% 101% 77% 87% (3) (3) (3) FY-2018 9M-2019 9M-2020 FY-2018 9M-2019 9M-2020 FY-2018 9M-2019 9M-2020 Styrene Monomer Butadiene MTBE /Butene-1 (2) (1) 106% 89% (4) 69% 79% 78% 79% 70%
Slide 15: Energy
Barito Pacific } Energy 15
Slide 16: Star Energy Geothermal Operating Assets
Star Energy Geothermal Operating Assets Three Geothermal Operation with a Total Installed Capacity of 875MW Wayang Windu Salak Darajat ◼ Bandung Regency, West Java ◼ Sukabumi Regency and Bogor Regency, West Java ◼ Garut Regency and Bandung Regency, West Java ◼ 227 MW total installed capacity ◼ 377 M
Slide 17: Star Energy – Market leader in Geothermal Power
Star Energy – Market leader in Geothermal Power Largest geothermal power producer in Indonesia… third largest in the world. Geothermal Energy Producers in Indonesia Top Geothermal Energy Producers Globally 2017 Installed Capacity (MW) 1,169 2017 Installed Capacity (MW) 1 3 875 899 875 874 725 617 1
Slide 18: Strong Track Record of Operational Performance
Strong Track Record of Operational Performance Star Energy Geothermal Operating Assets – Average Net Capacity Factor Wayang Windu Salak Units 1 to 3 Salak Units 4 to 6 (IP operated turbine) (3) 97% 95% 97% 97% 91% 96% 98% 99% 99% FY-2018 9M-2019 9M-2020 FY-2018 9M-2019 9M-2020 FY-2018 9M-2019 9M-202
Slide 19: Star Energy – Unique ESG issuer in green debt capital markets
Star Energy – Unique ESG issuer in green debt capital markets ($1.7bn issued) Issuer Star Energy Geothermal - Wayang Windu Star Energy Geothermal – Salak & Darajat Year issued April 2018 October 2020 Credit Investment Grade : Baa3 (stable) by Moody’s / BBB- (stable) by Ba3 (stable) by Moody’s / BB-
Slide 20: Java 9 & 10 - Ultra Super Critical coal-fired power project
Java 9 & 10 - Ultra Super Critical coal-fired power project Description Project Ownership ◼ 2,000 MW (2 x 1,000 MW) ultra supercritical coal-fired power project developed 100% Govt. under a BOOT scheme Owned ◼ Located in Suralaya, Banten province 100% ◼ The site is located in close proximity to CAP’
Slide 21: 9M-2020 Financial Highlights
9M-2020 FINANCIAL HIGHLIGHTS 21
Slide 22: 9M-2020 Business Highlights
9M-2020 Business Highlights • Achieved consolidated EBITDA of US$168m for Q3-2020, bringing 9M-2020 consolidated EBITDA to US$386m (23.2% margin) vs US$450m 9M-2019 • CAP Improved profitability with Q3-2020 EBITDA of US$61m vs Q2-2020 of US$18m, realizing double digit EBITDA margin. Continued reboun
Slide 23: 9M-2020 Consolidated Financial Results
9M-2020 Consolidated Financial Results Debt to DEBT TO EBITDA / EBITDA Net Revenue TOTAL ASSETS & CASH BALANCE Net Debt to NET DEBT TO EBITDA 7,270 EBITDA 5.1x 1,772 1,666 7,182 Total Assets 14 4.3x 12 Cash 3.8x 378 394 3.0x 611 495 560 132 2 2 7 1,380 1,260 130 132 744 657 477 363 421 Q1-2020 Q2-20
Slide 24: Medium Term Growth Strategy
MEDIUM TERM GROWTH STRATEGY 24
Slide 25: Track record of deploying significant capital and delivering meaningful projects
Track record of deploying significant capital and delivering meaningful projects Completed Major Projects Capex (U$m) Year CAP: Cracker expansion project and TAM 380 2015 STAR ENERGY: Acquired Salak/Darajat Geothermal 2,103 2017 CAP: Formed JV with Michelin, SBR Plant and Butadiene Plan Expansion 47
Slide 26: Sizeable and Tangible Pipeline Growth
Sizeable and Tangible Pipeline Growth Strong track record paving for a clear path of growth 2nd Naphtha Cracker Hamiding & Sekincau (Preliminary Survey & ➢ 1,100 ktpa ➢ Shareholding structure yet to Exploration) be finalized – in discussion ➢ Right to match the best with various parties tender offer
Slide 27: Unlocking Value of Barito Group
Unlocking Value of Barito Group • Star Energy Geothermal (SEG) ➢ Evaluating several possible markets for IPO - IDX, SGX, HKEx, and US. ➢ Market that appropriately values unique ESG footprint of SEG ➢ Tax efficiency ➢ Target within 2 years or installed capacity upwards of 1,200MW (currently 875MW). •
Slide 28: Environmental Social Governance
Environmental Social Governance 28
Slide 29: Global AUM dedicated to ESG investing continues to grow
Global AUM dedicated to ESG investing continues to grow Rising awareness of ESG in making investment decisions Barito Pacific Group has adopted UN Sustainable Development Goals “Sustainable practice can affect financial performance” 29
Slide 30: Current ESG rating of Barito Pacific
Current ESG rating of Barito Pacific.. On the path of continuous improvement. Rating Provider Current Score Target MSCI ESG LEADERS √ BB A Sustainalytics 34.1 (High Risk) 25-27 (Medium Risk) FTSE ESG Under review • ESG ratings are a relatively new phenomena but catching up fast. • Barito acknowledge
Slide 31: Environmental → Reducing water usage, energy consumption and greenhouse gas emission
Environmental → Reducing water usage, energy consumption and greenhouse gas emission despite increase in production capacity • CAP total production capacity increase by 28% • total GWh of electricity sold from renewable energy source 15.485 (2017: 5.152GWh ; 2018: 5.229GWh ; 2019: 5.104GWh) • Geothe
Slide 32: Environmental → What we've done
Environmental → What we’ve done • 4.8 % Reforestation and Green Corridor ; Natural Spring revitalization • Reduction Plastic Asphalt Program • 53 New fleet electrical forklifts replacing diesel • Install Solar Panels to reduce CO2 emissions • Invest in Enclosed Ground Flare - leaves no air discharge
Slide 33: Environmental → What to expect next in 2021
Environmental → What to expect next in 2021 4.8 % • Longer term Emission and reduction targets Reduction • CAP Water usage and water intensity to be improved on partnership with ECO LABS. Announced Dec 2020. • CAP Enclosed ground flare project delivered. Started construction in 2018. Delivered in 20
Slide 34: Social → Yayasan Bakti Barito: Corporate Social Responsibility Arm
Social → Yayasan Bakti Barito: Corporate Social Responsibility Arm of Barito Pacific Expenditure Pillars of Bakti Barito Period (Rp billion) Education 40.8 Since 2011 Teachers’ training ; Scholarship Program ; Vocational School ; Early Childhood program; digital library Environment 40.0 Since 2011 R
Slide 35: Social → COVID relief efforts of Barito Group
Social → COVID relief efforts of Barito Group 35
Slide 36: Governance → Highly Experienced Management Team
Governance → Highly Experienced Management Team Board representation for partners, highly experienced and diverse team Name Position Company Name Position Company Prajogo Pangestu President Commissioner BRPT Tanawong Areeratchakul Commissioner CAP Henky Susanto Independent Commissioner BRPT Thammasa
Slide 37: Governance → Creating impact beyond returns for all stakeholders
Governance → Creating impact beyond returns for all stakeholders • Board of Commissioners and Board of Directors represent an average of more than 15 years of experience in our industries. Our global partners are represented at the board level in all our group companies. • Board composition and dive
Slide 38: Sustainability - a path, not just a goal
Sustainability - a path, not just a goal Thank you Office Address: Contact: PT Barito Pacific Tbk Investor Relations /Corporate Secretary Wisma Barito Pacific Tower B, Fl. 8 Email: investor.relations@barito.co.id Jl. Letjen. S. Parman Kav. 62-63 corpsec@barito.co.id Jakarta 11410 Telp: +62 21 530 67