PT Chandra Asri Pacific Tbk · IDX:TPIA
PT Chandra Asri Pacific Tbk — PT Chandra Asri Petrochemical — Q1 2020 Earnings Presentation
21 slides from PT Chandra Asri Pacific Tbk's earnings presentation, Jun 5, 2020
Slide 1: Q1 2020 Results
PT Chandra Asri Petrochemical Tbk Q1 2020 Results Earnings Call – 5th June 2020 21 1
Slide 2: Forward Looking Statements
Forward Looking Statements IMPORTANT NOTICE: This document contains forward-looking statements concerning the financial condition, results of operations and business of PT Chandra Asri Petrochemical Tbk. All statements other than statements of historical fact are, or may be deemed to be, forward-loo
Slide 3: Contents
Contents 1 Summary Highlights 2 Performance Overview 3 Strategy & Growth 4 Questions & Answers 21 3
Slide 4: Management Overview
Management Overview 3 Key Imperatives. Given the unprecedented uncertainty the world is 1 experiencing due to COVID-19, Chandra Asri is focused on (1) Business Continuity, (2) Operational Excellence, and (3) Financial Resilience. Challenging Macro Environment. Q1 2020 performance reflects challengin
Slide 5: COVID-19 Response
COVID-19 Response Chandra Asri’s Key Imperatives to Navigate the Unprecedented Uncertainty Business Operational Financial Continuity Excellence Resilience • Stringent day-to-day • Focus on Asset Integrity, • Capex reduced by $295m operational protocol with smooth and safe in 2020 • Senior Management
Slide 6: COVID-19 Response – Business Continuity
COVID-19 Response – BUSINESS CONTINUITY Protecting the safety of our staff, stakeholders and community Protect & Prevent • Continuous Undisrupted Operations at all sites • Dedicated COVID-19 Task Force to support daily operations • Preventive measures at all locations ▪ Physical distancing – no larg
Slide 7: COVID-19 Response – Business Continuity
COVID-19 Response – BUSINESS CONTINUITY Protecting the safety of our staff, stakeholders and community Enhanced Cleaning and Disinfection Physical Distancing Support Front Line Workers Donation of Medical Equipment Food Aid for Affected Communities 7
Slide 8: COVID-19 Response – Operational Excellence
COVID-19 Response – OPERATIONAL EXCELLENCE Maintain Asset Integrity, Productivity, and Customer-Focus Maintain Staff Productivity Maintain Robust IT Asset Infrastructure Integrity Customer Support and Interface Supply Chain Resilience 8
Slide 9: COVID-19 Response – Financial Resilience
COVID-19 Response – FINANCIAL RESILIENCE Rephase Capex, Reduce Opex, and Optimise Working Capital Milestones Achieved for 2020 US$295m US$41m Reduction in capex budget Cash release from working 2020 from $430m to $135m capital optimisation US$11m >US$10m Reduction in conversion costs Reduction in op
Slide 10: Product Spreads
Product Spreads Q1 2020 product spreads were very tight for the global petchem industry, but have since rebounded with the collapse in crude prices. OLEFINS POLYOLEFINS OTHERS 1,500 2,250 2,000 1,250 1,036 1,750 1,000 1,500 837 1,250 874 913 750 1,000 713 500 750 872 521 521 500 250 521 250 0 - Q1 2
Slide 11: Production and Sales
Production and Sales With the 400KTA New Polyethylene coming on stream, Chandra Asri’s PE production & sales have doubled. (all figures in KT) Ethylene Polyethylene Plant Polypropylene Plant Prod Sales Prod Sales Prod Sales 201 210 163 154 138 148 148 94 (1) 83 83 128 34 YTD Q1-19 YTD Q1-20 YTD Q1-1
Slide 12: Operating Rates
Operating Rates Key focus is to run the plant full with clear eye on safety, whilst optimising economics and spreads. Naphtha Cracker Polyethylene Plant Polypropylene Plant 107% 101% 99% 94% 94% 84% YTD Q1-19 YTD Q1-20 YTD Q1-19 YTD Q1-20 YTD Q1-19 YTD Q1-20 Styrene Monomer Plant Butadiene Plant All
Slide 13: Net Revenues
Net Revenues Lower Net Revenues by 14% ytd to US$477 million in Q1 2020, reflecting lower realized Average Selling Price for all products, primarily for Ethylene and Polyethylene. Net Revenues by segment (in US$mn) Net Revenues % Split Butadiene 9% Olefin 552 16% 3 477 Styrene 55 Monomer 1 41 13% 97
Slide 14: Key Financials
Key Financials Q1 2020 impacted by margins which were lower than historical average but have since picked up Gross Profit ($m) Underlying EBITDA ($m) Debt and Net Debt ($m) Underlying EBITDA margin Debt Net Debt 885 12% (3%) 791 66 62 261 131 YTD Q1-19 YTD Q1-20 YTD Q1-19 YTD Q1-20 (17) (14) 31-Dec-
Slide 15: Robust Liquidity Pool
Robust Liquidity Pool With strong balance sheet position and US$880m of liquidity, Chandra Asri is well positioned to weather the crisis Key Highlights Total Liquidity Pool Marketable (in US$mn) ▪ Strong cash balance of US$624m Securities ▪ Robust liquidity with available Revolving Credit Facility l
Slide 16: Updated Capex Budget 2020
Updated Capex Budget 2020 Capex channeled towards maintaining asset integrity and safety, and prudent progress being made with new growth projects Opportunity Classification Original Capex Budget 2020 Revised Capex Budget 2020 Asset Integrity US$23m US$37m Margin US$19m US$14m Improvement Growth Pro
Slide 17: Outlook for Key Value Drivers
Outlook for Key Value Drivers Overall, there is cautious optimism as societies begin to unwind lockdowns and economic activity picks up, notwithstanding global macro economic uncertainties VOLUME Volumes remain very robust, as Chandra Asri is the leading and preferred domestic DEMAND player. Limited
Slide 18: Projects and Growth Update
Projects and Growth Update MTBE-B1 expected to come onstream by Q3 2020 to get to 4.2Mln TPA total capacity, and complete Vertical Integration Master Plan Cracker Merger with SSBR PE Expansion Expansion and TPI and BD Plant Cracker C2, C3, MTBE, Operation and and PP Acquisition of Increase PE Operat
Slide 19: CAP 2 – Project Master Schedule to Grow to >8Mln TPA Capacity
CAP 2 – Project Master Schedule to Grow to >8Mln TPA Capacity Re-phased due to COVID-19. Continuous focus on Capital Discipline with Stage-Gated Approach Gate 1: Sep’17 Gate 3: 2021 • Budget approval for Land (partial)/ • Funding structure confirmation License/ BEP/ PDP • Budget for EPC Bidding Pre-
Slide 20: CAP 2 – Key Milestones and Ongoing Progress
CAP 2 – Key Milestones and Ongoing Progress 1 Ongoing discussions with international Strategic Investors 2 Land acquisitions on track Shareholder approval for pre- 3 emptive rights TIC estimates +/- 30% by 3rd party 4 within projections 5 Tax Holiday confirmed (20 years @ 100% + 2 years @ 50%) 6 Fun
Slide 21: For more information please contact
For more information please contact: Head Office Address: Contact: PT Chandra Asri Petrochemical Tbk Investor Relations Wisma Barito Pacific Tower A, 7th Floor Email: investor-relations@capcx.com Jl. Let. Jend. S. Parman Kav. 62-63 Tel: +62 21 530 7950 Jakarta 11410 Fax: +62 21 530 8930 Visit our we
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