Pt Avia Avian Tbk · IDX:AVIA
Pt Avia Avian Tbk — Q3 2022 Earnings Presentation
27 slides from Pt Avia Avian Tbk's earnings presentation, 2022
Slide 1: PT Avia Avian Tbk Investor Presentation Q3 2022 Results
PT Avia Avian Tbk Investor Presentation Q3 2022 Results
Slide 2: Disclaimer
Disclaimer All investments is highly speculative in nature and involves 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 Q3 2022 snapshot
Avian Brands Q3 2022 snapshot SALES GROSS PROFIT EBITDA NET PROFIT IDR 1.58 T IDR 594 B IDR 360 B IDR 303 B ( US$ 106 m ) ( US$ 40 m ) ( US$ 24 m ) ( US$ 20 m ) 37.6% 22.8% 19.2% EMPLOYEES DISTRIBUTION COVERAGE CUSTOMERS CENTERS 37 Provinces 54,500+ 8,000+ 140 98 Cities Retail shops Convenience tran
Slide 5: Business update
Business update ▪ The impact of inflation in Indonesia has severely Indonesia Inflation Rate(1) hampered growth in the building materials industry, including paints. ▪ The government’s recent decision to reduce fuel 5.2% subsidies has further weakened purchasing power ▪ Nonetheless, Avian Brands con
Slide 6: New product launched
New product launched ▪ No Drop Anti Panas waterproofing paint was launched on 1 July, 2022 ▪ In addition to being a waterproofing paint, this product can reduce the indoor temperature by up to 7°Celcius ▪ The price is 34.8% more expensive than No Drop waterproofing paint ▪ This product is Green Labe
Slide 7: New product launched
New product launched ▪ Avitex Gold wall paint was launched on 12 September, 2022 ▪ The pricing is 20.3% more expensive than Avitex wall paint ▪ This product is Green Label Singapore certified ▪ In the first 19 days after its launch, more than 5,800 retail shops have participated ▪ Although market co
Slide 8: New brand ambassador
New brand ambassador ▪ Press conference to appoint Cinta Laura as the new brand ambassador for Supersilk Anti Noda premium interior wall paint was held on 23 September, 2022 ▪ Cinta’s appointment is intended to accelerate consumers brand awareness of this premium interior wall paint ▪ Various cooper
Slide 9: Distribution centers expansion
Distribution centers expansion 140 Distribution centers spread across the nation: Benefits from continued 105 wholly owned DC and 35 third-party DC expansion of distribution centers: ▪ Improve product penetration and provide superior quality of service ▪ Maximize 1-day delivery service for retail sh
Slide 10: Consolidated business segment - sales
Consolidated business segment - sales Q3 sales by value YTD Q3 sales by value (IDR billion) (IDR billion) as % of total sales as % of total sales 25.4% 28.9% 26.7% 25.7% 20.8%(1) 73.6% 74.5% 70.7% 73.4% 65.3%(1) 4,977 4,958 1,743 4,223 1,639 1,579 4,054 1,531 3,770 1,302 2018 2019 2020 2021 2022 201
Slide 11: Consolidated business segment - customers
Consolidated business segment - customers Q3 number of customers YTD Q3 number of customers 52,942 54,573 48,478 49,561 49,378 50,887 45,900 43,878 43,433 39,230 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 11
Slide 12: YTD Q3 2022 sales split by regions
YTD Q3 2022 sales split by regions 10.9% 12.4% +25% +80% 8.7% 6.9% 7.8% +50% 5.2% 17.3% -27% 22.0% 51.7% -10% 57.1% ▪ 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 ah
Slide 13: Consolidated business segment
Consolidated business segment YTD Q3 2022 sales by segment YTD Q3 2022 Sales by customers Trading Goods Supporting Product(1), 6.1% 6.3% 6.0% 6.3% 6.5% 19.3% 1.9% Furniture, 3.5% Pipe, 13.9% Wall, 22.6% Other(2), 8.0% 93.9% 93.7% 94.0% 93.7% 93.5% Woodcare(3), 6.6% Wood & Waterproofing Metal, 19.2%
Slide 14: Consolidated business segment - margin
Consolidated business segment - margin Quarterly Gross margin 40.3% 39.1% 41.7% 40.8% 41.3% 37.6% 40.0% Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 YTD Q3 22 Quarterly EBITDA margin 28.5% 27.3% 29.3% 27.9% 26.4% 25.8% 22.8% Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 YTD Q3 22 Quarterly Net income margin 20.9% 21.2
Slide 15: Architectural solutions segment - sales
Architectural solutions segment - sales Q3 sales by value YTD Q3 sales by value (IDR billion) (IDR billion) as % of total sales as % of total sales 24.7% 28.3% 26.5% 25.9% 20.7%(1) 73.8% 75.7% 71.7% 74.8% 67.3%(1) 3,971 3,999 1,372 1,275 1,230 3,403 1,195 3,230 3,072 1,030 2018 2019 2020 2021 2022 2
Slide 16: Architectural solutions segment - volume
Architectural solutions segment - volume Q3 sales by volume(2) YTD Q3 sales by volume(2) (metric ton) (metric ton) as % of total sales as % of total sales 24.5% 28.3% 26.5% 25.8% 18.8%(1) 74.7% 76.3% 71.9% 75.6% 64.4%(1) 139,380 48,358 130,510 47,575 123,394 122,411 44,253 120,347 40,511 35,727 2018
Slide 17: Architectural solutions segment - customers
Architectural solutions segment - customers Q3 number of customers YTD Q3 number of customers 48,967 47,338 43,476 44,448 44,983 43,361 40,746 38,603 38,144 34,708 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 17
Slide 18: Trading goods segment - sales
Trading goods segment - sales Q3 sales by value YTD Q3 sales by value (IDR billion) (IDR billion) as % of total sales as % of total sales 28.5% 31.0% 27.5% 25.2% 21.0%(1) 72.9% 69.9% 67.2% 68.3% 57.6%(1) 1,006 959 364 371 336 349 820 823 698 273 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 (1)
Slide 19: Trading goods segment - customers
Trading goods segment - customers Q3 number of customers YTD Q3 number of customers 45,571 42,332 43,620 36,443 37,583 40,322 35,204 33,336 34,762 28,653 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 19
Slide 20: Quarterly gross margin
Quarterly gross margin Architectural solutions segment 4%-6% Price increase 3%-8% 3%-5% 3%-5% (1 October) Price increase Price increase Price increase 5%-7% (1 March) (1 May) (1 July) Price increase (1 December) 46.2% 46.4% 47.8% 45.1% 46.2% 44.2% 45.2% Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 YTD Q3 22
Slide 21: Well-managed cost structure
Well-managed cost structure Cost Breakdown (as % of sales) 2018 2019 2020 2021 YTD Q3 22 SG&A expenses G & A(1) 3.0% 3.5% 2.8% 2.7% 3.2% increase as a result in DC expansion Sales & Marketing(2) 15.1% 15.8% 16.0% 13.1% 14.6% related cost COGS(3) 57.1% 58.6% 56.1% 58.3% 60.0% Total 74.4% 75.2% 77.9%
Slide 22: COGS breakdown
COGS breakdown 2018 2019 2020 2021 YTD Q3 22 Increase of BTL as a Raw materials 61.2% 51.8% 47.5% 58.2% 56.6% result of more aggressive marketing Direct labor 1.9% 1.9% 2.1% 1.9% 1.9% activities in response Factory overhead 4.2% 3.7% 4.2% 4.2% 4.4% to the actions of competitors WIP and FG 21.9% 31.1
Slide 23: 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% 29.5% 1,306 1,844 1,947 1,123 1,694 1,519 1,617 927 914 793 820 789 719 776 520 583 360 288 367 1,001 1,166 1,019 425 796 938 318 -322 -392 -489 -568 167
Slide 24: On-time account receivable collection
On-time account receivable collection ▪ Avian Brands has been able to achieve stable on- On-time collection time account receivable (AR) collection over several (IDR billion) challenging years ▪ This shows the quality of relationships with our Election Covid Covid Covid + customers across the nation
Slide 25: Training programs for painters
Training programs for painters ▪ Nationwide training program for painters was launched in April 2022 ▪ To save costs, most training programs are conducted in distribution centers ▪ Around 40 painters take part in each training program ▪ Each session kicks off with the launch of Avian Brands’ Painter
Slide 26: Notable ESG initiatives
Notable ESG initiatives Product Stewardship 20 17 10 5 2 2018 2019 2020 2021 2022* ▪ We continue our commitment to a gradual shift to more environmentally friendly products (Green Label certified & Indonesian National Standard certified) ▪ We recognise that conducting business in a responsible and s
Slide 27: Guidance for 2022
Guidance for 2022 Sales projection FY 22 ▪ Value growth 1 – 5% ▪ Volume decline 10% - 15% Planned actions in Q4: ▪ Expansion of 4 distribution centers will take place ▪ 1 last new product will be launched for the year 2022. ▪ Completion of permit for the Cirebon factory continues to be a challenge d