Isdn Holdings Limited · SGX:I07
Isdn — Investor Presentation (January 2023)
22 slides from Isdn's investor presentation, Jan 13, 2023
Slide 1: Presentation Slides for Investor Briefing
The Singapore Exchange Securities Trading Limited, Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoe
Slide 2: Investor update January 2023
Investor update January 2023
Slide 3: Disclaimer
Disclaimer This is a presentation of general information relating to the current activities of ISDN Holdings Ltd (“ISDN”). It is given in summary form and does not purport to be complete. The presentation may contain forward-looking statements relating to financial trends for future periods, compare
Slide 4: Welcome
Welcome • Thank you for your continued support and strategic patience • It has been difficult to disclose more details until recently: We couldn’t jeopardise good progress we made in complex policy and commercial discussions • Today, we’re pleased to brief investors on an historic milestone in ISDN’
Slide 5: Today's agenda
Today’s agenda 1 Introduction 2 The market opportunity 3 Lau Biang 1 (“LB1”) update 4 Outlook and potential 5 Q&A
Slide 6: ISDN had early vision in the shift to sustainable industries
ISDN had early vision in the shift to sustainable industries ISDN doesn’t just provide technologies for Asia’s industrial future: We also embody a sustainable future with our clean industries business ISDN automation expertise and commitment to clean industry Core industrial automation portfolio Eme
Slide 7: Why hydro-power? The market opportunity
Why hydro-power? The market opportunity
Slide 8: A massive and growing market opportunity
A massive and growing market opportunity $2bn to $5bn in investment per year ISDN strategically positioned to needed for Indonesia’s 2030 build value for our shareholders renewables target (IESR, Dec 2021) • We are early in a clear growth market Hydropower • 9 years of hydro power experience in is 7
Slide 9: A compelling business model
A compelling business model 25 years of high quality, Transfer to public utility ~4-5 years recurring earnings at end of BOT construction Build- operate- Investment highlights transfer (BOT) model ~2-4 years capex ... • Very profitable when operational • Quality, recurring earnings with long term vi
Slide 10: We have strategic plant locations
We have strategic plant locations Strategic rural locations with Medan, North clear need for sustainable power Sumatra Lau Biang 1 • Clear win-win benefit for rural communities who depend on fossil fuels to generate power today • Good competitive dynamics: competitors unlikely to pick the same locat
Slide 11: Lau Biang 1
Lau Biang 1 = prac a success for ISDN ae
Slide 12: Lau Biang business model
Lau Biang 1 business model Many delays for first commercial launch but Lau Biang 1 profile we’ve resolved many policy and stakeholder issues: Next 2 plants will be much faster (~2023-24) Commercial operations (31 Dec 2022) 8 year long construction phase: COVID-19 delays, Transfer to policy & stakeho
Slide 13: Impact on ISDN earnings
Impact on ISDN 7 prac earnings oe
Slide 14: Solid and high-quality earnings impact from LB1
Solid and high-quality earnings impact from LB1 P&L and earnings contribution Return on investment Strong earnings accretion: We estimate that LB1 will be +20% accretive to earnings and +19% accretive to PATMI. Solid return on Earnings are of high quality: recurring, cash-rich, with long-term visibi
Slide 15: Outlook for our hydro portfolio
Outlook for our hydro portfolio
Slide 16: More plants entering commercial operations
2 more plants entering commercial profits Anggoci and Sisira are paid-for, COD should happen faster operational, and awaiting COD for Anggoci and Sisira Lau Biang 1 Anggoci Sisira • Policy is now supportive (e.g. Sep 2022 Presidential Regulation 112 in Indonesia) 10MW 10MW 4.6MW • LB1 COD has cleare
Slide 17: Unlocking shareholder return for ISDN
Unlocking shareholder return for ISDN Public comparable companies in Indonesia trade at ~30-37x P/E Once 3 plants are commercialised, ISDN’s energy We have several ways to business should have significant equity value realise value for ISDN shareholders List Co 1 List Co 2 List Co 3 Listed peers - A
Slide 18: Group outlook: both growth engines are now operational
Group outlook: both growth engines are now operational Core industrial automation business Clean energy business • China re-opening is a clear positive, but may Lau Biang 1 Anggoci Sisira take several quarters to build momentum 10MW 10MW 4.6MW • Our solutions are well-positioned in China as Industry
Slide 19: Q&A session
Q&A session
Slide 20: Thank you
e Gomi Thank you
Slide 21: Appendix
Appendix
Slide 22: Lau Biang business model phases: BOT
Lau Biang 1 business model phases: BOT Build Invest equity Capex EPC & Other investors LB1 construction contractors Debt Construction Project lenders financing Operate 25-year contract 59% equity deliver power 41% equity Other investors LB1 Indonesia’s buy deliver Debtholders debt energy power to po