Pt Chandra Asri Pacific Tbk · IDX:TPIA
Pt Chandra Asri Pacific Tbk — PT Chandra Asri Petrochemical — Q3 2019 Earnings Presentation
34 slides from Pt Chandra Asri Pacific Tbk's earnings presentation, January 2020
Slide 1: Company Presentation: Q3 2019 Results & Update
PT Chandra Asri Petrochemical Tbk COMPANY PRESENTATION Q3 2019 Results & Update January 2020
Slide 2: Contents
Contents 1 Company Profile 2 YTD Q3-2019 3 Strategic & Growth 4 Outlook & Priorities Performance Projects Update 2
Slide 3: Company Profile
2 = Chandra Asri Company Profile
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 a
Slide 5: 27-year track record of successful growth
27-year track record of successful growth 2018 CAP 2015 2016 2017 (USD) 2011 2015 Merger of CA and Completed cracker expansion 3.2bn TPI effective from 1 project in December 2015, Jan 2011 resulting to increased capacity 2018 3.0bn Completed de- to 860KTA 1.9bn 2.1bn bottlenecking to Appoint
Slide 6: Integrated production of diverse products for CAP
Integrated production of diverse products for CAP 1 CAP’s products encompass a wide range across the consumer products value-chain, and its leading position & strategic location enhances its competitiveness Capacity (KT/A) Use (Examples) Capacity Polyethylene KT/A) Naphtha (736) Ethylene (900) Styre
Slide 7: Strategically located to supply key customers
Strategically located to supply key customers CAP’s Integrated Petrochemical Complexes Inti Everspring Indonesia BASF Indonesia Merak Energi Lobunta Kencana Rhone Poulenc SBL Sulfindo Adiusaha NAOH, Cl2 Santa Fe Sulfindo Adi Usaha. EDC, VCM Indochlor Sauh Bahtera samudera Sulfindo Adi. PVC Gumindo P
Slide 8: Solid track record
Solid track record CAP is an Indonesian market leader across all its products 1 Largest Petrochemical Company in Indonesia1 Olefin Top 10 South East Asia Producers2 (’000 tons per year) Olefins Polyethylene 5,000 7 4,000 CAP CAP 3,000 Pertamina 50% LCT 20% 2,000 23% Total 27% Total 1,000 Supply Supp
Slide 9: CAP is Indonesia's largest petrochemical producer
CAP is Indonesia’s largest petrochemical producer Capacities of Petrochemical Producers in Indonesia (2019) Capacity ('000 tons per year) s Others Total Ethylene 900 - - - - - - - 900 Propylene 490 - 625 - - - - - 1,115 LLDPE 400 200 - - - - - - 600 HDPE 336 250 - - - - - - 586 Polypropylene 590 - 4
Slide 10: Indonesian petrochemical market overview
Indonesian petrochemical market overview Attractive Indonesian macroeconomic growth and consumption trends GDP Growth CAGR (2017 – 2020F)(1) Polyolefin Consumption per Capita(2) 10% 7.7% Bubble size indicates 6.8% 6.3% 6.2% demand in 2018, million tons 5.4% 8% 4.8% 11 India 3.3% China 2.6% 2.0% 6% I
Slide 11: Indonesian petrochemical market overview
Indonesian petrochemical market overview Attractive Indonesian macroeconomic growth and consumption trends End Markets Total Demand Growth (2018 – 2025F CAGR(1)) Plastic films Containers 4.8% Polyethylene Bottles PE Plastic bags 3.8% Packaging Films and sheets Fibers and filaments 5.4%
Slide 12: Petrochemical market supply in Indonesia
Petrochemical market supply in Indonesia CAP is well-positioned to benefit from increasing supply-demand gap in Indonesia Ethylene Propylene Butadiene (KTA) 3 crackers needed to catch (KTA) (KTA) up with domestic demand 3,070 2,992 2,448 425 1,000 1,646750 130 1,849 1,518 70 227 1,007 1,078 1,025 1,
Slide 13: Shareholder Structure
Shareholder Structure Strong commitment from Shareholders The Siam Cement Public Company Limited Prajogo Pangestu 100.00% 70.35% SCG Chemicals PT Barito Pacific Tbk Prajogo Pangestu Marigold Resources(2) Company Limited Public float 41.88% 13.99% 4.75% 30.57% 8.81% Barito Pacific Key benefits of par
Slide 14: Strong management team with substantial industry experience
Strong management team with substantial industry experience Board of Commissioners DJOKO SUYANTO TAN EK KIA HO HON CHEONG AGUS SALIM LIM CHONG THIAN THAMMASAK CHOLANAT President VP Commissioner Commissioner, PANGESTU Commissioner SETHAUDOM(1) YANARANOP(1) Commissioner Independent Independent Commiss
Slide 15: Clear focus on ESG factors across 4 Key Pillars
Clear focus on Environmental, Social and Governance factors across 4 Key Pillars Health Environment Immunization and family planning services Converted over 2m used plastic bags into more than 6km2 Distribution of milk and supplementary food for infants of plastic-asphalt road that is 40% more
Slide 16: Year to Date Q3-2019 Performance
Year to Date Q3-2019 Performance
Slide 17: Summary Highlights
Summary Highlights 44 million work hours without Loss Time Accident as of 30 September 2019. 2019 year to date financial performance reflects continued moderation of global petrochemical margins due to new capacity additions, soft global macroeconomic environment (e.g. US-China trade war, drone
Slide 18: Year To Date Operating Rates
Year To Date Operating Rates During Aug-Sep 2019, we performed plant shutdown to conduct a Turn-Around Maintenance (TAM). The TAM was successfully executed in 51 days and we resumed operations in September 2019. As a result of the TAM, we recorded lower operating rates in Q3-19. year to date data Na
Slide 19: Year To Date Production and Sales Volumes
Year To Date Production and Sales Volumes (in KT) (1) Ethylene Polyethylene Plant Polypropylene Plant year to date data Prod Sales Prod Sales Prod Sales 624 498 392 399 312 327 306 259 261 223 219 219 Q3-18 Q3-19 Q3-18 Q3-19 Q3-18 Q3-19 Butadiene Plant Total Production & Sales Volume Styrene Monomer
Slide 20: Product Spreads (in US$/MT)
Product Spreads (in US$/MT) Product prices and spreads esp. Ethylene and Polyethylene were adversely affected due to global capacity additions with steady demand, along with declining feedstock prices. OLEFINS POLYOLEFINS OTHERS 1,500 1,500 2,250 2,000 1,173 1,250 1,250 1,750 1,000 879 1,000 1,500 1
Slide 21: Year To Date Net Revenues
Year To Date Net Revenues Lower Net Revenues by 29.3% ytd to US$1,387.6 million in Q3 2019, reflecting lower sales volume coupled with declined realized ASP for all products, primarily for Ethylene and Polyethylene. Revenues by Segment (in US$mn) year to date 1962 8 140 316 1388 8 133 286 903 645 59
Slide 22: Key Financials (in US$mn)
Key Financials (in US$mn) year to date Gross Profit EBITDA Underlying EBITDA margin 17% 11% 345 337 167 155 Q3-18 Q3-19 Q3-18 Q3-19 Net Profit Cash Flow from Operations, Capex Net Profit Margin CFO Capex 9% 2% 273 174 209 165 32 Q3-18 Q3-19 Q3-18 (18)Q3-19 Underlying EBITDA = Earnings Before Interes
Slide 23: Key Financials (in US$mn)
Key Financials (in US$mn) Cash Balance Debt and Net Debt Debt Net Debt 824 727 618 569 254 * Net Cash position of US$109m 31-Dec-18 30-Sep-19 31-Dec-18 30-Sep-19 Underlying EBITDA / Finance Costs Leverage Ratios (x) 3.7x 1.5x 1.2x -0.3x Min 32% 26% Max 2.5x 50% FY 2018 Q3-19 FY 2018 Q3-19 Debt to Ca
Slide 24: CAPEX Spending (in US$mn)
CAPEX Spending (in US$mn) CAP1’s remaining ongoing projects is MTBE and Butene-1 will be on stream by Q3 2020 whereas CAP2 is the majority spending for next year’s budget. 430 362 69 50 333 273 54 34 152 114 12 11 30 10 8 68 67 54 2019LE 2020F YTD Q3 2019 PE expansion PP expansion Furnace Revamp Oth
Slide 25: Strategic & Growth Projects Update
Strategic & Growth Projects Update
Slide 26: Strategic Growth via Expansion & Debottlenecking
Strategic Growth via Expansion & Debottlenecking After doubling the size of production capacity over historical 10-yrs, expected further growth in the next 5-yrs will come from several expansion & debottlenecking initiatives (KTA) SSBR New PE, PP expansion, MTBE and operation, BD Furnace revamp Bute
Slide 27: Projects
Projects On Stream and On Track Increase Production Capacity Butadiene Plant Expansion New Polyethylene Plant Furnace Revamp Increase BD capacity by 100 KT/A to 137 New facility of total 400 KT/A to produce Increase cracker capacity by modifying KT/A LLDPE, HDPE and Metallocene LLDPE heat inte
Slide 28: CAP 2 – Project Master Schedule
CAP 2 – Project Master Schedule Ongoing progress for selection of Strategic Investor. Target to have FID Approval by Q4 2020. Gate 1: Sep’17 Gate 3: Q2’20 • Budget approval for Land (partial)/ • Funding structure clarity License/ BEP/ PDP • Budget for EPC Bidding Pre-Launch Stage 1 Stage 2 Stage 3 S
Slide 29: New 400KTA Polyethylene Plant
New 400KTA Polyethylene Plant Officiated by the President of the Republic of Indonesia, Mr. Joko Widodo “The development of Chandra Asri’s new plant is a concrete step [that] is needed by our country,” President Jokowi said on Friday – The Jakarta Post, 9 Dec 2019 “PT Chandra Asri is a pioneer in th
Slide 30: Our Sustainability
Our Sustainability Incorporating ESG In Chandra Asri, sustainability is an inherent part of our business strategy. Along with the company’s growth, Environmental, Social and Governance aspects have become embedded in our operational activities and become our priorities. To share the update of our ES
Slide 31: Outlook & Priorities
2 = Chandra Asri Outlook & Priorities
Slide 32: Margins Outlook (in US$/MT)
Margins Outlook (in US$/MT) Petrochemical margins are moderating along with new capacity additions, softening demand, and global economy uncertainties 1,500 1,250 1,173 1,045 1,000 774 750 525 500 250 - Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19FQ1-20FQ2-20FQ3-20FQ4-20F
Slide 33: Key Priorities
Key Priorities Ramping up production of new 400 KTA PE plant and PP plant post debottlenecking in September with new increased capacity of 590KTA. Complete MTBE and Butene-1 plant project by Q3 2020 and achieve total production capacity of 4.2 MTA. Conclude the internal merger of CAP-PBI by 1
Slide 34: For more information please contact
For more information please contact: Head Office Address: Contact: PT Chandra Asri Petrochemical Tbk Investor Relations Wisma Barito Pacific Tower A, 7th Floor Email: investor-relations@capcx.com Jl. Let. Jend. S. Parman Kav. 62-63 Tel: +62 21 530 7950 Jakarta 11410 Fax: +62 21 530 8930 Visit our we
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