Pt Barito Pacific Tbk · IDX:BRPT
Pt Barito Pacific Tbk — Barito Pacific — Investor Presentation (October 2019)
62 slides from Pt Barito Pacific Tbk's investor presentation, October 2019
Slide 1: A Leading Indonesian Energy Group
A LEADING INDONESIAN ENERGY GROUP Barito Pacific | Company Presentation October 2019
Slide 2: Table of Contents
Table of Contents 1 OVERVIEW OF BARITO PACIFIC 2 KEY BUSINESS HIGHLIGHTS 3 3M-2019 RESULTS 4 GROWTH STRATEGY APPENDIX 2
Slide 3: Overview of Barito Pacific
Section 1 OVERVIEW OF BARITO PACIFIC
Slide 4: Barito Pacific at a Glance
Barito Pacific at a Glance As of today Group Organization Chart PT Barito Pacific Tbk (“Barito Pacific”) Petrochemicals Energy Property and Others 46.26%(1) 66.67%(6) 49.00%(4) 100.00% PT Chandra Asri Star Energy Group PT Indo Raya Tenaga PT Griya Idola Petrochemical Tbk Holding Pte Ltd Indonesia’
Slide 5: Petrochemicals
Barito Pacific S&S Section 1.A PETROCHEMICALS
Slide 6: Chandra Asri Petrochemical at a Glance
Chandra Asri Petrochemical at a Glance Largest integrated petrochemical producer in Indonesia Largest integrated petrochemical producer in Low production cost base and operating efficiencies Indonesia and operates the country’s only ◦ Benefits from scale of feedstock sourcing and naphtha cracker
Slide 7: Integrated Production of Diverse Products
Integrated Production of Diverse Products Capacity (ktpa) Use of Goods (examples) Capacity (ktpa) Polyethylene Naphtha (336) Ethylene (860) Styrene Naphtha Monomer consumption of (340) 2,450 ktpa at full Merchant capacity market (430) Polypropylene Propylene (470) (480) Pyrolysis Gasoline (400) Bu
Slide 8: 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 Redeco Showa Esterindo Styrene Monomer Polychem Plant Puloampel- Cont Carbon CB Sintetikajaya Trans Bakrie Capacity 3
Slide 9: CAP is Indonesia's Largest Petrochemical Producer
CAP is Indonesia’s Largest Petrochemical Producer Source: Nexant; and CAP (1) Butadiene capacity was expanded from 100KTA to 137KTA in mid 2018. (2) SRI, a joint venture of CAP and Michelin, started up in Q3 2018. Synthetic rubber includes styrene butadiene rubber and polybutadiene rubber 9
Slide 10: Energy
Barito Pacific S&S Section 1.B ENERGY
Slide 11: Star Energy at a Glance
Star Energy at a Glance Operating assets Wayang Windu Salak Darajat Garut Regency and Bandung Regency, Bandung Regency, West Java Sukabumi Regency and Bogor Regency, West Java 227 MW total installed capacity West Java 271 MW total installed capacity Unit 1 (Power): 110 MW 377 MW total
Slide 12: Star Energy's Competitive Edge
Star Energy’s Competitive Edge Indonesia’s premier geothermal platform Well-established history of operational Highly experienced technical team performance and reliability which has consistently received Systematic and robust maintenance industry accolades procedures in place to ensure Stro
Slide 13: Property
Barito Pacific S&S Section 1.C PROPERTY
Slide 14: Property Business
Property Business Wisma Barito Pacific Wisma Barito Pacific 2 Located in West Jakarta, 2 towers of office space with a total of 23 Expansion of Wisma Barito Pacific floors (tower A: 11 floors, tower B: 12 floors) Land size: 5,290 sqm Operation started in November 1990 GFA: 46,530 sqm Lan
Slide 15: Key Business Highlights
Section 2 KEY BUSINESS HIGHLIGHTS
Slide 16: Key Business Highlights
Key Business Highlights Market leading positions in Indonesia’s petrochemical and energy sector with 1 key assets strategically located in Java 2 Strong track record of operational performance Predictable and stable cash flows from geothermal power 3 business 4 World class partners Track record of d
Slide 17: Market Leading Positions
1 Market Leading Positions Star Energy is the largest geothermal power producer in Indonesia… Geothermal Energy Producers in Indonesia Top Geothermal Energy Producers Globally 2017 Installed Capacity (MW) 2017 Installed Capacity (MW) 1,169 1 3 899 875 875 874 725 617 220 120 1 largest geothermal ene
Slide 18: Market Leading Positions
1 Market Leading Positions Star Energy is the largest geothermal power producer in Indonesia… 2016 Production 2016 Capacity World Renewables 5,885,504 (GWh) World Renewables 2,011,446 (MW) 82,654 39,509 12,266 10,656 8,851 6,931 1,644 875 Indonesia World Indonesia Star Indonesia World Indonesia Star
Slide 19: Market Leading Positions
1 Market Leading Positions …while CAP is the largest petrochemical company in Indonesia... Olefin producers in Indonesia Polyolefin producers in Indonesia (1) 2018 Olefin Supply in Indonesia 2018 Polyolefin Supply in Indonesia Imports 27% 24% 50% Imports 2.6 mtpa 55% 3.5 mtpa Lotte Chem 13% Pertamin
Slide 20: Leading Indonesian Integrated Energy Group
1 Leading Indonesian Integrated Energy Group …with the Group’s key assets strategically located in Java Wisma Barito Java Pacific 9 & 10 Sekincau (Preliminary Particle Board Survey & Exploration) Manufacturing Java Hamiding (Preliminary Jakarta Griya Idola Survey & Exploration) Chandra Asri Industri
Slide 21: Strong Track Record of Operational Performance
2 Strong Track Record of Operational Performance Star Energy Operational Geothermal Assets – Average Net Capacity Factor Wayang Windu Salak Unit 1 to 3 Salak Unit 4 to 6 Darajat Unit 1 Darajat Unit 2 & 3 (IP operated turbine) (IP operated turbine) (5) (2) (1) PLN Take or pay 97% 98% 98% 99% 80% 97%
Slide 22: Predictable and Stable Cash Flows from Geothermal Business
Predictable and Stable Cash Flows from Geothermal 3 Business Long-term offtake agreements with state-owned enterprises (PLN Remaining Contract Life by Asset (years) and Pertamina) Current contracts have a capacity weighted average remaining term of ~24 years 27 PLN 23 22 Capacity contracted on t
Slide 23: World Class Partners
4 World Class Partners Business model which thrives upon long-term strategic and customer relationships Power Business Petrochemicals Business Partners Partners ■ Acquired 33.33% stake in Star Energy for a total ■ Acquired 30% stake in CAP in 2011 consideration of US$357m in July 2017 ■ Currently ow
Slide 24: Track Record of Delivering Strategic Projects on Time and on Budget
5 Track Record of Delivering Strategic Projects on Time and on Budget CAP Historical Expansions (in ktpa) Star Energy Historical Expansions (in MW) Cracker Merger with BD plant Acquisition of expansion & TPI & BD plant Cracker expansion & Acquired COD Wayang Salak and acquisition increase PE operati
Slide 25: Sizeable and Tangible Pipeline Growth
6 Sizeable and Tangible Pipeline Growth High quality organic growth pipeline paving the way for successful expansion Growth Factors Development Opportunities Low electricity consumption per capita in Indonesia as compared Star Energy will focus on renewable energy opportunities to other ASEAN co
Slide 26: Sizeable and Tangible Pipeline Growth (cont'd)
6 Sizeable and Tangible Pipeline Growth (cont’d) High quality organic growth pipeline paving the way for successful expansion 2nd Naphtha Cracker 1,100 ktpa Shareholding structure yet to be finalised – Hamiding & Sekincau in discussion with various parties (Preliminary Survey & PP Plant Debottle
Slide 27: Well Positioned to Benefit from Indonesia's Growth
7 Well Positioned to Benefit from Indonesia’s Growth Operates in key industries with strong underlying growth prospects… Key Growth Drivers in Indonesia GDP Growth CAGR (2017-2020E) 7.7% Rising Quality of Life 6.8% Population 6.3% 6.2% 5.4% 4.8% Product Consumer 3.3% Substitution Spending 2.6% 2.0%
Slide 28: Attractive Industry Outlook
8 Attractive Industry Outlook Power generation and geothermal industry outlook in Indonesia The 2026 Electricity Supply Business Plan (Rencana Umum Penyediaan Tenaga Listrik – “RUPTL”), lays out the government’s electricity development plan from 2017 to 2026 The RUPTL aims to achieve an electrif
Slide 29: Attractive Industry Outlook
8 Attractive Industry Outlook Petrochemical industry outlook in Indonesia Total Demand Growth Demand and Supply Gap End Markets (2017E–2023E CAGR) (ktpa) Plastic films 1,317 1,625 1,824 Indonesia 4.4% Containers 1,231 1,231 Polyethylene Bottles 833 Global 3.4% Plastic bags (484) (394) (593)
Slide 30: Highly Experienced Management Team
9 Highly Experienced Management Team …all backed by a team with years of operational expertise adept at forging strategic relationships Barito Pacific Prajogo Pangestu Henky Susanto Lim Chong Thian Salwati Agustina President Commissioner Independent Commissioner Commissioner Independent Commissioner
Slide 31: Highly Experienced Management Team
9 Highly Experienced Management Team …all backed by a team with years of operational expertise adept at forging strategic relationships Star Energy – Board of Directors Tan Ek Kia Agus Salim Pangestu Rudy Suparman Hendra Soetjipto Tan Bundit Sapianchai Chairman, SEGHPL Director, SEGHPL Director, SEG
Slide 32: 1H-2019 Results
Barito Pacific S&S 1H-2019 RESULTS
Slide 33: Executive Summary – 1H-2019
Executive Summary – 1H-2019 • PT Barito Pacific Tbk • Achieved consolidated EBITDA of US$159m for 2Q-2019, bringing 1H-2019 EBITDA to US$321m with healthy EBITDA margin of 24.6%, an 11.5% decrease on a year-on-year basis • Successfully refinanced US$250m term loan (Bangkok Bank - due Sept 2019) with
Slide 34: Executive Summary – 1H-2019
Executive Summary – 1H-2019 • PT Chandra Asri Petrochemical Tbk • CAP partners with Total to install solar panels to power its laboratory, warehouse and office building in Cilegon to generate renewable energy and affirms its commitment to sustainability • S&P Global Ratings upgraded CAP credit ratin
Slide 35: Financial Profile by Subsidiary
Financial Profile by Subsidiary (Per 30 June 2019) (in US$m) 536; 8% Assets Total Debt 325; 12% 770; 29% 3,194; 46% 3,257; 46% 1,560; 59% Net Revenues EBITDA 4; 0% -7; -2% 245; 19% 132; 39% 1,053; 81% 196; 59% 35
Slide 36: Financial Highlights – 1H-2019
Financial Highlights – 1H-2019 Consolidated EBITDA (US$ Million) 431 321 1H-2018 1H-2019 Consolidated Net Income (US$ Million) 136 68 1H-2018 1H-2019 36
Slide 37: Financial Performance – 1H-2019
Financial Performance – 1H-2019 Profit & Loss (US$m) Balance Sheet (US$m) Component 1H-2019 1H-2018 YoY Δ% Component 1H-2019 FY-2018 YoY Δ% Net Revenues 1,302 1,550 (16.0%) Cash and Eqv 720 801 (10.1%) Cost of Revenues (973) (1,105) (11.9%) Fixed Assets 2,756 2,682 2.8% Gross Profit 329 445 (26.1%)
Slide 38: Growth Strategy
Barito Pacific S&S Section 4 GROWTH STRATEGY
Slide 39: Growth Strategy Chandra Asri Petrochemical
Growth Strategy Chandra Asri Petrochemical CAP 2 will deliver the next phase growth for Chandra Asri After doubling the size of production capacity over historical 10 years, the expected further growth in the following years will come from several expansion & debottlenecking initiatives and construc
Slide 40: CAP 2 Master Schedule
CAP 2 Master Schedule Gate 1: Sep - 2017 Gate 3: 2Q - 2020 Stage 0 Stage 1 Stage 2 Stage 3 Stage 4 1. Prelim Cap 2 Concept project return 1. Prelim 1. EPC Bidding project 2. return Technology 1. Complex 1. FEED 2. Final TIC Award 2. Technology 1. EPC Work Configuration 2. AMDAL 3. Investment Award 3
Slide 41: Geothermal Development Projects
Geothermal Development Projects Salak Expansion Geothermal Exploration Salak Binary Sekincau Proposed Start-up: 2021 Located in West Lampung, Sumatera 15 MW capacity Right to match the best tender offer for the license to develop the Development stage: feasibility studies resource area D
Slide 42: Wayang Windu Unit 3 Expansion Potential
Wayang Windu Unit 3 Expansion Potential Potential for Unit 3, scaling up gross power generation by up to 60 MW Expansion aimed at enhancing competitiveness, given growing demand, cost competitiveness and underutilized offtake agreement Star Energy has extensive experience and efficient busines
Slide 43: Java 9 & 10 Power Project
Java 9 & 10 Power Project Description Project Timeline 2,000 MW (2 x 1,000 MW) ultra supercritical coal-fired power project June 2017: developed under a BOOT scheme Conditional PPA with PLN signed Located in Suralaya, Banten province 1H 2018: EPC contractor selection 2H 2018: The site is locat
Slide 44: Java 9 & 10 Power Project: Master Schedule
Java 9 & 10 Power Project: Master Schedule Gate 1: Nov - 17 Gate 3: Q4 - 18 Stage 0 Stage 1 Stage 2 Stage 3 Stage 4 Jawa 9/10 1. Environmental concept 1. EPC bidding license for process. 1. Provisional 1. EPC transmission 2. Land line and ash 1. Unit 1 targeted PPA. contract improvement disposal. CO
Slide 45: Thank You
Barito Pacific S&S THANK YOU
Slide 46: Debt Profile
Barito Pacific S&S Appendix DEBT PROFILE
Slide 47: Enlarged Barito Pacific Debt Analysis (as of 30 June 2019)
Enlarged Barito Pacific Debt Analysis (as of 30 June 2019) Net carrying Borrowing Initial Repayment Recourse Maturity amount Key Covenants Use of Proceeds entity Principal Profile (US$m) • Net Debt / EBITDA <= 3 Used as an advance for the acquisition of Star PT Barito Pacific US$250m (1) NA Amortizi
Slide 48: Enlarged Barito Pacific Debt Analysis (cont'd)
Enlarged Barito Pacific Debt Analysis (cont’d) (as of 30 June 2019) Net carrying Borrowing Initial Repayment Recourse Maturity amount Key Covenants Use of Proceeds entity Principal Profile (US$m) • Ratio of consolidated bearing liabilities and Equity shall not PT Chandra Asri exceed 1:1 Partial refi
Slide 49: Acquisition of Star Energy
Appendix ACQUISITION OF STAR ENERGY
Slide 50: Acquisition Rationale
Acquisition Rationale Consolidate leadership positions in the Indonesian energy market Transform Barito Pacific into an integrated energy group with full operational capabilities Secure long-term contracted cash flows from energy assets Diversification of sources of earnings Gain exposure
Slide 51: Star Energy Group Milestone
Star Energy Group Milestone Mitsubishi becomes shareholder of EGCO becomes shareholder of Acquisition of Chevron Darajat and Salak SEGHPL SEGHPL with 648 MW COD Wayang Windu COD Wayang Windu Unit 2 with Preliminary Survey of Hamiding Ayala becomes shareholder of SEG Unit 1 with 110 MW 117 MW Concess
Slide 52: Effective Shareholdings in Star Energy
Effective Shareholdings in Star Energy Barito Pacific’s Effective Interests Star Energy’s effective shareholding in: 66.67% 33.33% Wayang Windu 60.00% x 100.00% = 60.00% Salak 60.00% x 40.90% x 100.00% + 27.41% x 100.00% = 51.95% Darajat 60.00% 69.75% Barito Pacific’s effective shareholding in: Star
Slide 53: Acquisition of a 66.67% stake in Star Energy
Acquisition of a 66.67% stake in Star Energy Financial impacts of the transaction Total Purchase Consideration of US$755 (1) FYE 31 December EBITDA Net Net Debt (6) / Net Debt (6) million 2017 (US$m) (4), (5) Income (Net Cash) / US$3.2bn Implied Enterprise Value (2) EBITDA 9.1x 2017 EBITDA (3)
Slide 54: Star Energy Operations
Appendix STAR ENERGY OPERATIONS
Slide 55: Wayang Windu
Wayang Windu Asset overview The Wayang Windu geothermal power project is situated near the town of Pangalengan in West Java, Indonesia The 12,950 ha contract area contains plantations and protected forest reserves. Wayang Windu project above-ground structures only utilize 128 ha Shareholders o
Slide 56: Salak
Salak Asset overview The Salak geothermal power project is situated near Sukabumi regency and Bogor regency in West Java, Indonesia The 10,000 ha contract area contains a nature reserve and protected forest reserves. Above-ground structures only utilize 236 ha The Salak project is Indonesia’s
Slide 57: Darajat
Darajat Asset overview The Darajat geothermal power project is situated near Garut regency and Bandung regency in West Java, Indonesia The 5,000 ha contract area contains a nature recreational park, protected forest and private land. Above-ground structures only utilize 85.7 ha The Darajat pro
Slide 58: Geothermal Operational and Financial Performance
Geothermal Operational and Financial Performance Average Net Capacity Factor (1) Wayang Windu Salak (2) Darajat (3) 98% 97% 97% 94% 92% 90% 90% 95% 45% FY-2017 FY-2018 1H-2019 FY-2017 FY-2018 1H-2019 FY-2017 FY-2018 1H-2019 Units 1-3 Units 4-6 Unit 1 Units 2-3 Net Dispatch (GWh) 1,568 1,561 1,910 1,
Slide 59: Chandra Asri Petrochemical Operations
Appendix CHANDRA ASRI PETROCHEMICAL OPERATIONS
Slide 60: Track Record of Successful Growth
Track Record of Successful Growth CAP 337m 550m 2011 2015 (US$) Merger of CA and TPI Completed cracker 510m effective from 1 January expansion project and EBITDA 155m 2011 TAM Completed de- bottlenecking to raise 2018 polypropylene capacity to 2015 2016 2017 Sept 2018 480 ktpa SCG Chemicals
Slide 61: CAP 2 Product Flows and Production Capacities
CAP 2 Product Flows and Production Capacities 61
Slide 62: Growth Strategy Chandra Asri Petrochemical (continued)
Growth Strategy Chandra Asri Petrochemical (continued) Strategic Growth via Expansion and Debottlenecking (Exclude CAP 2) Schedule CAPEX Funding Capacity Cumulative Proposed (US$m) Status Increase Capacity Project Description Start Start up Current Production Capacity 3,458 KT/A PP Debottlenecking 4
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