Pt Avia Avian Tbk · IDX:AVIA
Pt Avia Avian Tbk — FY2022 Earnings Presentation
22 slides from Pt Avia Avian Tbk's earnings presentation, 2023
Slide 1: PT Avia Avian Tbk Investor Presentation FY 2022 Results
PT Avia Avian Tbk Investor Presentation FY 2022 Results
Slide 2: Disclaimer
Disclaimer All investments are highly speculative in nature and involve substantial risk of loss. We encourage our investors to invest very carefully. We also encourage investors to get personal advice from your professional investment advisor and to make independent investigations before acting on
Slide 3: Avian Brands team
Avian Brands team Ruslan Tanoko Robert Tanoko Kurnia Hadi Andreas Hadikrisno Vice President Operations & Finance Director Head of Investor Director Development Director Relations ruslan.tanoko robert.tanoko kurnia.hadi investor.relations @avianbrands.com @avianbrands.com @avianbrands.com @avianbrand
Slide 4: Avian Brands FY 2022 snapshot
Avian Brands FY 2022 snapshot FY SALES FY GROSS PROFIT FY EBITDA FY NET PROFIT IDR 6.69 T IDR 2,717 B IDR 1,664 B IDR 1,400 B ( US$ 456 m ) ( US$ 185 m ) ( US$ 113 m ) ( US$ 95 m ) 40.6% 24.9 % 20.9% EMPLOYEES DISTRIBUTION COVERAGE CUSTOMERS CENTERS 37 Provinces 56,000+ 8,000+ 146 98 Cities Retail s
Slide 5: FY 2022 financial performance highlights
FY 2022 financial performance highlights In IDR billion 2022 2021 Change ▪ The Architectural Solutions segment (except per share data) outperformed the Trading Goods segment Consolidated Sales 6,694 6,780 -1.3% supported by growth in wall paints and waterproofing. Architectural Solutions 5,384 5,306
Slide 6: Business update in FY 2022
Business update in FY 2022 ▪ Inflation proved to be a major headwind in 2022. Weak Indonesia Inflation Rate(1) consumer demand due to high inflation affected various industries, including paints and building 5.5% materials. ▪ The government’s decision to cut fuel subsidies in September 2022 further
Slide 7: New product launched in FY 2022
New product launched in FY 2022 ▪ In 2022, we launched 12 new products. We expanded Wall paints Waterproofing our products in the following segments: wall, waterproofing, wood & metal, and wood care. ▪ Supported by more than 70 qualified chemists, we continue to develop innovative products that meet
Slide 8: Distribution centers expansion
Distribution centers expansion Benefits from continued expansion of distribution centers: ▪ Improve product penetration and provide superior quality of service. ▪ Enhance customer relationships. ▪ Increase inventory management and minimize loss opportunity. ▪ In FY 2022, we opened 8 wholly-owned DCs
Slide 9: Financial highlights for the last 5 years
Financial highlights for the last 5 years Sales Gross profit EBITDA Net profit (IDR billion) (IDR billion) (IDR billion) (IDR billion) margin in % margin in % margin in % 42.9 41.4 43.9 41.7 40.6 27.0 24.6 28.3 29.3 24.9 20.3 16.9 19.8 21.2 20.9 2,826 2,717 1,990 1,435 1,400 6,780 6,694 2,519 2,345
Slide 10: Sales and gross profit for the last 5 years
Sales and gross profit for the last 5 years Architectural Solutions Trading Goods Sales Gross profit Sales Gross profit (IDR billion) (IDR billion) (IDR billion) (IDR billion) margin in % margin in % 49.0 48.0 51.8 47.8 46.3 16.3 15.8 15.5 19.5 17.3 2,537 2,491 1,474 5,306 5,384 2,329 1,310 2,161 28
Slide 11: Architectural solutions volume for the last 5 years
Architectural solutions volume for the last 5 years Volume(1) ▪ Architectural Solutions’ volume declined by 12.6% (metric ton) compared to last year. ▪ Volume grew 10.3% in 2021, the highest in the last five years, due to pent-up demand following the Covid-19 outbreak in 2020. 184,450 ▪ Faced with m
Slide 12: Number of customers for the last 5 years
Number of customers for the last 5 years Consolidated Architectural Solutions Trading Goods as % of the total number of customers as % of total number of customers 87.7 87.6 88.3 89.3 89.7 82.5 83.3 85.2 84.4 85.0 56,132 54,498 51,635 52,406 50,354 48,648 47,700 46,374 45,216 46,293 46,020 44,633 43
Slide 13: FY 2022 sales split by regions
FY 2022 sales split by regions 11.1% 12.4% +21% +77% 9.2% 7.0% 8.0% +54% 5.2% 17.3% -21% 22.0% 51.2% -9% 56.5% ▪ Avian Brands sales split by regions vs. Indonesia GDP. AVIA ▪ We are trailing Indonesia GDP in Jawa (Jakarta area) and Sumatra islands (northern part). GDP(1) ▪ We are significantly ahead
Slide 14: Consolidated business segment
Consolidated business segment Sales by distribution FY 2022 sales by segment Sales by customers networks 2.2% 1.2% 0.9% 0.3% 0.5% Trading Goods 6.1% 6.3% 6.0% 6.3% 6.8% 19.6% 11.0% 11.5% 11.1% 12.4% 12.3% 1.9% Supporting 3.6% Furniture Product(1) 22.4% Wall 14.1% Pipe 93.9 93.7 94.0 93.7 93.2 86.7 8
Slide 15: Well-managed cost structure
Well-managed cost structure Cost Breakdown (as % of sales) 2018 2019 2020 2021 2022 SG&A expenses increase as a result in G & A(1) 3.0% 3.5% 2.8% 2.7% 3.2% DC expansion related cost, travelling cost, Sales & Marketing(2) 15.1% 15.8% 16.0% 13.1% 15.3% salary & wages, and transport cost. COGS(3) 57.1%
Slide 16: COGS breakdown
COGS breakdown 2018 2019 2020 2021 2022 Increase of BTL as a Raw materials 61.2% 51.8% 47.5% 58.2% 53.9% result of more aggressive marketing Direct labor 1.9% 1.9% 2.1% 1.9% 1.9% activities in response to Factory overhead 4.2% 3.7% 4.2% 4.2% 4.2% the actions of competitors. WIP and FG 21.9% 31.1% 33
Slide 17: Robust cash-flow generation
Robust cash-flow generation Trade working capital Free cash flow and capex (IDR billion) (IDR billion) as % of total sales 31.6% 29.9% 26.5% 27.2% 29.1% 1,306 1,844 1,947 1,123 1,099 1,694 1,617 1,519 927 953 789 719 793 776 520 494 360 288 367 938 1,001 1,166 1,074 425 796 318 -322 -392 -489 167 19
Slide 18: On-time account receivable collection
On-time account receivable collection ▪ Amid challenging market conditions impacted by On-time collection Covid-19, inflationary pressures, as well as fuel subsidy reduction, Avian Brands has been able to achieve stable on-time account receivable (AR) collection. Election Covid Covid Covid + inflati
Slide 19: Commitment in ESG - Environment
Commitment in ESG - Environment Improve energy management by obtaining ISO 251,894 kWh from renewable energy with 50001 certification. installation of solar panels. Achieve Green PROPER from Ministry of Environment Replace diesel forklifts with electric forklifts, and Forestry. Reduce emissions by 7
Slide 20: Commitment in ESG - Social
Commitment in ESG - Social Achieve Certificate “PLATINUM” for handling 16.25% reduction of total Recordable Injury and prevention Covid-19 from East Java Rate. Government. Reduce Ergonomic Injuries by implementing Achieve Zero Accident Certificate from East technology that helps in manufacturing sit
Slide 21: AVIA is listed in national and international indexes
AVIA is listed in national and international indexes Jakarta Islamic ▪ JII70 Index for the period of December 2022 – May 2023. ▪ JII70 was launched by Indonesian Stock Exchange in 2018. Index 70 ▪ From 150 shariah companies with the largest market capitalization, 70 companies are (JII70)(1) selected
Slide 22: Guidance for 2023
Guidance for 2023 Full year 2023 Operating environment ▪ Value growth 8 – 12%. ▪ Volume growth 2 - 6%. Positives Watching Challenges ▪ Gross Margin and EBITDA improvements from FY 2022. More disposable ▪ Adding 9 new wholly owned DCs and 9 mini DCs. income through National consumer Higher interest r