Pt Avia Avian Tbk · IDX:AVIA
Pt Avia Avian Tbk — IPO Roadshow (November 2021)
33 slides from Pt Avia Avian Tbk's IPO roadshow presentation, November 2021
Slide 1: PT Avia Avian Tbk Company Presentation
PT AVIA AVIAN TBK Company Presentation NOVEMBER 2021
Slide 2: Disclaimer
Disclaimer You must read the following before continuing. The following applies to the confidential information following this page, any oral presentation of such information and other materials distributed at, or in connection with, the following, and you (each referred to hereafter as a “Recipient
Slide 3: Disclaimer
Disclaimer To the extent available, the industry, market and competitive position data contained in this presentation has come from official or third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources
Slide 4: Avian Presentation Team
Avian Presentation Team Ruslan Tanoko Robert Tanoko Kurnia Hadi Vice President Director Director Director 4
Slide 5: Agenda
Agenda 1 Overview of Avian Brands 2 Key Investment Highlights 3 Financial Overview Offering Summary and Indicative 4 Timetable 5
Slide 6: Overview of Avian Brands
OVERVIEW OF AVIAN BRANDS SECTION 1
Slide 7: Avian Brands at a Glance
Avian Brands at a Glance Leading decorative paint player in Indonesia… …with a differentiated and vertically integrated business model IDR6,391bn IDR 6.39T 20% 88% 2 ( US$ 448m ) #1 market share in Indonesian sales through wholly-owned manufacturing facilities with LTM-May21 Sales(1) LTM-May21 Sales
Slide 8: Avian – Ownership Structure
Avian – Ownership Structure The Tanoko Family Since Avian’s founding in 1978, the Tanoko family has been Global perspective and reach through GIC’s worldwide committed to making the company a clear leader in platform; Rigorous corporate governance framework Indonesia’s paints and coatings industry 9
Slide 9: Our History
Our History At the forefront of paints & coatings in Indonesia since 1978 1978 1981 1985 1986 1992 1996 2000 2005 2006 Established in Expanded into Expanded paint Commenced Invested in a Established 2nd Established PT Expanded into Awarded ISO Sidoarjo, East wall paint product rang
Slide 10: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS SECTION 2
Slide 11: Key Investment Highlights
Key Investment Highlights 1 The Leading Decorative Paints Producer in Indonesia with Strong Brand Recognition Well-positioned to Take Advantage of the Favorable Industry Growth Dynamics in 2 Indonesia Comprehensive Paints & Coatings Product Offerings in Architectural Solutions 3 and Trading Goods, C
Slide 12: The Leader in Indonesia’s Paints and Coatings Market…
1 The Leader in Indonesia’s Paints and Coatings Market… Avian is the Market Leader in the Indonesia Decorative Paints and Coatings Industry Indonesia Competitive Market Landscape in Decorative Paint and Coating(1) Market share of decorative paints and coatings in Indonesia, 2020, % by value Leading
Slide 13: …With Best-in-class Brand Recognition
1 …With Best-in-class Brand Recognition Strong Brand Visibility Synonymous with High-quality Products, Resulting in Strong Customer Loyalty and Stickiness Award Winning Brand Unparalleled Brand Awareness and Customer Loyalty #1 Most Valued Brand in Indonesia(1) Domestically and Excellence in ESG Int
Slide 14: Well-positioned to Take Advantage of Industry Growth Dynamics in Indonesia
Well-positioned to Take Advantage of the Compelling Industry 2 Growth Dynamics in Indonesia Indonesia’s Nominal GDP is expected to grow at 7.7% between 2021 – 2025, Indonesia has only 6.0 Litres per capita consumption level in paints, sets the representing one of the fastest growing economies in the
Slide 15: Industry Growth Dynamics in Indonesia (Cont’d)
Well-positioned to Take Advantage of the Compelling Industry 2 Growth Dynamics in Indonesia (Cont’d) The combination of supportive market fundamentals and the strength of our vertically integrated business model allows us to generate highly attractive product margins Structurally Advantaged Business
Slide 16: Full Suite of Architectural Solutions Catering to Diverse Applications
Full Suite of Architectural Solutions Catering to Diverse 3 Applications and Price Segments The Wide Product Range Enables Us to Cater to a Broad Customer Base That Includes Professional and Retail Customers, While Maximizing the Full Range of Our Manufacturing, Distribution and R&D Capabilities Key
Slide 17: Distribution Network Across Indonesia with Self-owned DCs
Distribution Network Across Indonesia Underpinned By Expansive 4 Distribution Model with Established Self-owned DCs We Have the Largest Network of Owned DCs and Retailers Across Indonesia, Spanning a Total of 33 Provinces and 88 Cities Avian Self-owned Distribution Independent Distributors 5,459(1)
Slide 18: Production Excellence Underpinned by Vertically Integrated Manufacturing
Production Excellence Underpinned by our Vertically Integrated 5 Manufacturing Capabilities New Cirebon Factory • Construction to be completed in 2025 • Expected total production of 225,000 MT • Backward integration into resins and packaging • Budget of IDR 750bn SERANG Factory SIDOARJO Factory • Es
Slide 19: Strong Track Record of Delivering Innovative and Differentiated Products
Strong Track Record of Delivering Innovative and Differentiated 6 Products… Our Goal: Continuously Anticipating and Catering for Emerging Consumer Needs and Preferences with Innovative and Market-ready Solutions Continuously Aiming at Augmenting Our Value Notable New Products Launched in Recent Year
Slide 20: Supported by Leading R&D Facilities
6 …Supported by Leading R&D Facilities Newly Established Integrated R&D Center With Highly Qualified Expert Professionals Avian Innovation Center is One of the Largest Paint and Building Materials R&D Facilities in Indonesia Key Highlights Key Areas of Focus for Innovation • Strategically located ne
Slide 21: Highly Committed and Visionary Management Team
7 Highly Committed and Visionary Management Team Strong Leadership Team Across Three Generations of Tanoko Family with Over 38 Years of Proven Track Record Driving Avian’s Growth, Backed by Reputable Long-Term Strategic Partner Board of Commissioners Board of Directors Hermanto Tanoko 38 Wijono Tano
Slide 22: Committed to Stakeholder Value Creation with Purpose
7 We are Committed to Stakeholder Value Creation with Purpose Minimizing waste by recycling waste materials Proper waste disposal by licensed 3rd party professional Responsible Relevant ESG and CSR issues are discussed at the Board level practices Annual assessment and updating of risk matri
Slide 23: Our Key Strategies
7 Our Key Strategies Committed to Growth, with Purpose 1 Our Priority Markets Value added Indonesia Architectural applications and innovative solutions Our Avenues for Long-term and Profitable Growth 2 3 4 5 Continued expansion Actively pursue accretive Maintain operational Spearhead sustainability
Slide 24: Financial Overview
FINANCIAL OVERVIEW SECTION 3
Slide 25: Key Financial Highlights
Key Financial Highlights Industry-leading Profitability and Capital Light Growth Strong Market Outlook… Outstanding Growth Profile Attractive demographics in Indonesia Secular industry trends +12% +16% Sales FY17 – LTM-May21(1) EBITDA(2) FY17 – LTM-May21(1) CAGR CAGR +19% + Profit for the Year F
Slide 26: Our Business Segments
Our Business Segments Architectural Solutions Represents Our Core Paint Business with Trading Goods Operating as a Synergistic Add-on 2020 Sales by Segment 2020 Gross Profit by Segment Trading Goods Supporting Trading Goods 21.4% Paint 7.5% Products(1) Furniture 1.7% 4.6% Pipe Wall 15.1% 21,4% Other
Slide 27: Outstanding Growth Profile
Outstanding Growth Profile Consistent Top-line Expansion and Profit Increase Continued Profitable Growth 5.731 6.391 5.122 5.670 +32.3% Sales 4.312 2.702 (IDRbn) 2.043 (1) FY17 FY18 FY19 FY20 LTM-May21¹ 5M20 5M21 1.994 +80.4% 1.624 1.215 1.385 1.395 EBITDA(2) 829 459 (IDRbn) FY17 FY18 FY19 FY20 LTM-
Slide 28: Architectural Solutions - Key Financial Highlights
Architectural Solutions - Key Financial Highlights Combining Unmatched Profitability with Strong Growth Momentum Y-o-y growth (%) 16.4% 8.0% 0.2% 32.5% Sales 4,497 4,506 5,043 3,577 4,164 (IDRbn) 2,190 1,653 FY17 FY18 FY19 FY20 LTM-May21¹(1) 5M20 5M21 Y-o-y growth (%) 16.0% 6.0% 8.1% 32.8% 2,604 Gro
Slide 29: Trading Goods - Key Financial Highlights
Trading Goods - Key Financial Highlights Complementary Business Benefitting from the Expansion of Our Distribution Network and Stable Margins Y-o-y growth (%) 30.5% 22.4% 4.5% 31.5% 1,348 1,173 1,225 Sales 958 734 (IDRbn) 512 390 FY17 FY18 FY19 FY20 LTM-May21¹(1) 5M20 5M21 Y-o-y growth (%) 25.4% 18.
Slide 30: Proven Resilience and Growth Through the COVID-19 Crisis
Proven Resilience and Growth Through the COVID-19 Crisis Strong Resilience Through COVID-19 with Top-line and Bottom-line Growth Sales & Marketing Operational Excellence Cost Management • Strong pricing power with ability to • Superior procurement processes • Flexible cost position with ability to p
Slide 31: Offering Summary and Indicative Timetable
OFFERING SUMMARY AND INDICATIVE TIMETABLE SECTION 4
Slide 32: Offering Summary
Offering Summary Issuer PT Avia Avian Tbk Public Offering Structure Up to 10% of enlarged capital Offering Price per Share Rp780 – Rp930 • Working capital Use of Proceeds • Capital expenditure • Repayment of debt Dividend Payout Ratio Minimum 50% of distributable net profit Joint Global Coordinators
Slide 33: Indicative Timetable
Indicative Timetable Book Building Period 12 – 18 November 2021 OJK Effective Statement 29 November 2021 Offering Period 1 – 3 December 2021 Allotment 3 December 2021 Distribution & Payment to Issuer 6 December 2021 Refund 6 December 2021 IDX Listing 7 December 2021 33