Pt Gunung Raja Paksi Tbk · IDX:GGRP
Pt Gunung Raja Paksi Tbk — Investor Presentation (2024)
39 slides from Pt Gunung Raja Paksi Tbk's investor presentation, 2024
Slide 1: Public Expose Insidentil
gunungrajapaksi.com PRIVATE AND CONFIDENTIAL PUBLIC EXPOSE INSIDENTIL Driving Future Growth Through Sustainable Steel: GRP’s Commitment to Long-Term Sustainability Member of STRICTLY CONFIDENTIAL This information is confidential; It is not to be distributed to any party other than for the intended p
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by PT Gunung Raja Paksi Tbk (“Company” or “GGRP”) and consists of written materials/slides for a presentation concerning GGRP. By reviewing/attending this presentation, you agree to be bound by the following considerations: No representation or warranty
Slide 3: Topic Agenda
Text Topic Agenda 01. Company Overview Unusual Market Activity and Suspended Shares of 02. GRP 03. GRP Financial Highlight GRP’s Upcoming Strategy 04. Low Carbon Steel Project 3 gunungrajapaksi.com 3 PRIVATE AND CONFIDENTIAL
Slide 4: Section 1: Company Overview
Section 1: Shaping Tomorrow Company Overview
Slide 5: Management Team: Board of Commissioners
Management Team Board of Commissioners Mr. JAYA YULIANTO Mr. FREDDY KARYADI Independent Commissioner Independent Commissioner Mr. BUDI RAHARJO LEGOWO President Commissioner 51
Slide 6: Management Team: Board of Directors
Management Team Board of Directors Mr. ROYMOND Mr. BIPLAP KUMAR DUTTA Director Director Mr. FEDAUS President Director 6
Slide 7: Management Team: Key Management
Management Team Key Management President Director Director Director Fedaus Biplab Kumar Roymond Dutta Chief Chief Strategy Head of Technology Officer Sustainability Officer Michael Daniel Zhang Sheren Jianwei Ma Omega 73
Slide 8: Leading the Way as One of Indonesia's Largest Private Steelmakers
Leading the Way as One of Indonesia’s Largest Private Steelmakers PT Gunung Raja Paksi Tbk (GRP) is one of the largest steel producers in Indonesia, with over 50 years of experience in producing high-quality steel. Company Overview Company Product Overview Flat Downstream One of Indonesia's leading
Slide 9: Diversified Customer Base
High-quality Steel for Building the Nation and Globally Product portfolio that continues to grow and adapt to market needs GUNUNG RAJA PAKSI FLAT STEEL PRODUCT National and Regional Steel Distributor & Wholesaler Building & Construction Diversified Customer Base Hot Roll Coil (HRC) Steel Plate Coil
Slide 10: Proven track record of domestic and International Projects
Proven track record of domestic and International Projects We have a strong track record of supporting domestic and International corporations in serving variety of landmark projects Domestic Projects International Projects Bridges Industrial Plants Transport & Power Plants Merah Putih Rangka (Truss
Slide 11: Indonesian Steel Industry Poised for 4.8x Growth
Unlocking Vast Potential: Indonesian Steel Industry Poised for 4.8x Growth, Driven by Low Per Capita Consumption Compared Other ASEAN Countries Steel consumption as an economic Expansive Growth Potential for the Indonesian Steel Industry: Exploring Untapped Horizons Amidst indicator Low Per Capita C
Slide 12: Section 2: Unusual Market Activity & Suspension of Shares of GRP
Section 2: Unusual Market Activity & Shaping Tomorrow Suspended of Shares of GRP
Slide 13: Unusual Market Activity
Unusual Market Activity Company Explanation of the Unusual Market Activity 1. On July 26th, 2024, GGRP has obtained the approval from the shareholders to conduct the capital reduction in the form of reduction of share value from Rp 500 / shares become Rp 140/shares. The difference from capital reduc
Slide 14: Suspension of Shares
Suspension of Shares Company Explanation of the Suspension of Shares 1. In order to cooling down, as a form of 800 31 Okt 2024: Rp645/share protection for Investors against a significant 700 B 4 Nov 2024: cumulative share price decline of GGRP, the Rp530/share 600 IDX has temporarily suspended tradi
Slide 15: Section 3: GRP Financial Highlights
Section 3: Shaping Tomorrow GRP Financial Highlights
Slide 16: Macroeconomics and Political challenges in 2024: Surge in Steel Imports from China
Shaping Tomorrow Macroeconomics and Political challenges in 2024: The surge in steel imports from China and Election Year Two key external factors contributing to the decline in steel demand 1. Chinese products are flooding the national steel market at low prices Data in thousand CAGR 16% 5,311 • II
Slide 17: Financial Performance Summary Until Q3 2024
Shaping Tomorrow Financial Performance Summary Until Q3 2024 EBITDA from Profit before tax from Net profit from continuing operations continuing operations continuing operations USD50.1 million USD29.6 million USD31.0 million 18.7% EBITDA margin 11.0% Profit before tax margin 11.6% Net profit margin
Slide 18: Debt to Equity and Debt Service Coverage Ratios
Shaping Tomorrow Based on the presented charts below, the Company maintains a healthy financial position, including its debt levels, even after the capital reduction. This reflects the Company's strong capability to meet its obligations. As of September 2024, the Company's Debt-to-Equity Ratio (DER)
Slide 19: Other Important Ratios
Shaping Tomorrow Other Important Ratios Current Ratio 1) Days Sales Outstanding 2) Days Payables Outstanding 3) 7.00x 8 Days 50.00x 6.50x The Company’s 8 Days The short Days Sales 47 Days liquidity is strong, as Outstanding (DSO) ratio indicated by the ratio 45.00x indicates efficient 6.00x 7 Days 1
Slide 20: Section 4: GRP's Upcoming Strategy Low Carbon Steel Project
Section 4: GRP’s Upcoming Strategy Shaping Tomorrow Low Carbon Steel Project
Slide 21: Global Focus on Carbon Issue Increasing, with CBAM Emerging
Shaping Emerging Trends in the Global Steel Market Tomorrow Global Focus on Carbon Issue is Increasing, with CBAM Emerging as a Key Protective Measure Against Non-Green Steel Products This trend offers GRP a unique opportunity to capitalize on its first-mover advantage with Electric Arc Furnace (EAF
Slide 22: Majority of Steel Producers Still Rely on Blast Furnaces
Shaping Emerging Trends in the Global Steel Market Tomorrow While the majority of steel producers (71.1%) still rely on blast furnaces, there remains a limited number of low-carbon steel producers Global Share of steel production The adoption of EAF (Green Steel Scrap to play a dominating role in ev
Slide 23: Southeast Asian steel capacity is poised to expand unsustainably
Southeast Asian steel capacity is poised to expand unsustainably Aggressive expansion of steelmaking capacity in Region-wise EAF shares of steelmaking routes Southeast Asia, predominantly via the BF & BOF route The decarbonization of the steel sector is expected to drive an China EU+UK USA increase
Slide 24: Sustainability: Regulatory pressures make sustainable innovations essential
Sustainability: Growing regulatory pressures make sustainable innovations essential for maintaining a competitive edge in the steel industry Strategic Choices for GRP as Steel Suppliers First Mover Implications 1. Educate the value chain on Product the benefits of low-carbon Differentiation products
Slide 25: Product Compliance Regulation
Product Compliance Regulation To strengthen competitiveness in the domestic market and ensure compliance with government regulations, GRP products are equipped with SNI Certificate (National Standards) and TKDN Certificate (Domestic Component Level). In addition to that, Green Industry Standard for
Slide 26: GRP leading the sustainability charge against all odds
Decommissioning of Blast Furnace GRP leading the sustainability charge against all odds - Forging ahead towards sustainability without government backing European governments have announced US$ 9.43 bn. aid for …. In addition to the financial aid, Govt. is supporting domestic steel decarbonization o
Slide 27: Value chain overview for Phases 1 and 2 of the Low Carbon Steel Project
The high-level value chain overview for Phases 1 (2025-2026) and Phase 2 (2026 - 2028) of the Low Carbon Steel Project For 2025-2026, while the new rolling mill is under construction, GRP will focus on maximizing its existing assets and products Feed Material Steelmaking Upstream Middlestream Plate
Slide 28: Our upcoming products cater to a wide range of industries (1/2)
Our upcoming products caters requirement of a wide range of industries and end-use (1/2) Automotive steel *) Internal part of automotive High strength & weather-resistant steel Roof Structure Frame/Body Petrochemicals Shipbuilding/ Panels / Offshore Shipping containers Wheel Rims Rail Cars Construct
Slide 29: Our upcoming products cater to a wide range of industries (2/2)
Our upcoming products caters requirement of a wide range of industries and end-use (2/2) High Hole Expansion Steel HRC CQ & DP (2/2) Aerospace/ Hazardous Metal Defense material Power Plants Fabrication/ container Welding Transmission Electrical Heavy Structural tower* Equipment Equipment Beam/ colum
Slide 30: GRP Existing Carbon Footprint profile
GRP Existing Carbon Footprint profile While Scope 1 will require continuous internal energy improvement initiatives as explained in previous pages, for GHG Inventory at Company’s level Scope 2 GRP will need to work closely with existing energy provider, below are the options available : GHG Inventor
Slide 31: GRP is aiming for the green premium
GRP is aiming for the green premium: A sustained and notable premium for niche green HRC A sustained green premium in Asian HRC stands out within global Asian green steel premium pricing offers an advantage green steel markets over conventional steel Historical comparison price of green HRC and conv
Slide 32: Partnering with Development Finance Institutions to Advance Decarbonization
Partnering with Development Finance Institutions (DFIs) to Advance Decarbonization in Indonesia's Steel Sector World Bank's IFC Marks Its First Loan Investment in Asia's IFC Will Assist GRP in Entering the Global Green Steel Market Steel Sector 1. IFC will support GRP in identifying new market oppor
Slide 33: Partnering with DFI to Advance Decarbonization in Indonesia's Steel Sector
Partnering with DFI to Advance Decarbonization in Indonesia's Steel Sector Strong focuses on technical assistance to enhance operational efficiencies, sustainability initiatives, and governance practices Advisory support with Technical Assistance over Energy Technical Assistance over decarbonization
Slide 34: New Government Sets Bold Agenda to Drive Economic Growth
New Government Sets Bold Agenda to Drive Economic Growth One of example through steel demand from one of Housing Ministry, from 2025 – 2029 will require 19,1 million ton of steel GRP’s Upcoming Strategy GRP has signed a commitment letter and will work closely with Steel Construction Association to c
Slide 35: Green Industry Standard – Ministry of Industry
Green Industry Standard – Ministry of Industry To support overall Indonesia Net Zero emission target by 2060 or faster, one of key initiatives conducted by Indonesia government through Ministry of Industry is the establishment of Green Industry Standard. • The development of the SIH will prioritize
Slide 36: GRP achieves Gold designation for Green Label Indonesia certification
GRP achieves Gold designation for Green Label Indonesia certification GRP’s Upcoming Strategy GRP officially achieved the Green Label Indonesia certificate from the Green Product Council Indonesia (GPCI) in January 2024. • The comprehensive assessment from production process to finished products inc
Slide 37: GRP Supporting Indonesia's Digital Growth with Decarbonized Infrastructure
GRP Supporting Indonesia’s Digital Growth with Decarbonized Infrastructure Rising demand for decarbonized infrastructure development to support digitalization in Indonesia GRP’s Product Value Proposition High Strength Low Alloy (HSLA): (+) Stronger & Harder than ordinary carbon steel (+) Ductile, ea
Slide 38: Traceability of our product
EXISTING INFORMATION Traceability of our product Ensuring data transparency and product traceability is a crucial aspect of our sustainability journey. At GRP, we contribute to this effort through small initiatives, such as including detailed product information on our products, to enhance data tran
Slide 39: Thank You!
Thank You! www.gunungrajapaksi.com PT Gunung Raja Paksi Gunungrajapaksi.tbk +622-1890-0111 gunungrajapaksi.com 39