Pt Chandra Asri Pacific Tbk · IDX:TPIA
Pt Chandra Asri Pacific Tbk — PT Chandra Asri Petrochemical — Citi Pan-Asia Regional Investor Conference 2020
32 slides from Pt Chandra Asri Pacific Tbk's conference presentation, May 19, 2020
Slide 1: Company Presentation, Citi Pan-Asia Regional Investor Conference
Indonesia’s LEADING and PT Chandra Asri Petrochemical Tbk COMPANY PRESENTATION PREFFERED Citi Pan-Asia Regional Investor Conference Petrochemical Company Jakarta, May 19th, 2020 Jakarta, May 19th, 2020
Slide 2: Contents
Contents 1 Company Profile 2 Investment Highlights 3 Covid-19 Resilience Strategy 2
Slide 3: Company Profile
2 = Chandra Asri Company Profile
Slide 4: Chandra Asri – Indonesia's leading and preferred petrochemical company
Chandra Asri – Indonesia’s leading and preferred petrochemical company Largest Integrated Petrochemical Producer in Indonesia Largest integrated petrochemical producer in Indonesia and operates the country’s only naphtha cracker, styrene monomer and butadiene plants Market leadership in highly a
Slide 5: 28-year Track Record of Successful Growth
28-year Track Record of Successful Growth 2015 2016 2017 2018 2019 CAP (USD) 2013 2016 Strategic partnership with Issued 2016 Bond IDR500b 3.5bn Michelin to establish PT Corporate rating upgrade by 2019 Synthetic Rubber Moody’s from B2 to B1 3.2bn Indonesia 2.1bn 3.0bn Revised rating outlook
Slide 6: Vision and Business Strategy
Vision and Business Strategy Vision to be Indonesia’s Leading and Preferred Petrochemical Company 1 Increase capacity and product offerings to build on leading market position 2 Expand value proposition to increase profitability 3 Develop feedstock advantage to improve cost competitiveness 4 Develop
Slide 7: Integrated production of diverse products
Integrated production of diverse products CAP’s products encompass a wide range across the consumer products value-chain, and its leading position & strategic location enhances its competitiveness Capacity (KT/A) Use (Examples) Capacity Polyethylene KT/A) Naphtha (736) Ethylene (900) Styrene Napht
Slide 8: Our Sustainability
Our Sustainability Incorporating ESG In Chandra Asri, sustainability is an inherent part of our business strategy. Along with the company’s growth, Environmental, Social and Governance aspects have become embedded in our operational activities and become our priorities. Leadership in Energy Manageme
Slide 9: Holistic Focus ESG Factors Across 4 Key Pillars
Holistic Focus ESG Factors Across 4 Key Pillars Health Environment Distributing aid for the victims of natural disaster Working with local Government in implementing plastic asphalt project Holding several health events for both internal and external parties Supporting community-based waste
Slide 10: Investment Highlights
2 = Chandra Asri EN ights ighl Investment H
Slide 11: Key Investment Highlights
Key Investment Highlights 1 Well-positioned to benefit from attractive Indonesian growth fundamentals 2 Indonesia’s leading petrochemical producer with a diverse product portfolio 3 Diversified customer base and strategically located to supply key customers 4 Diverse and secured sources of feedstock
Slide 12: Well-Positioned to Benefit from Attractive Indonesian Macroeconomic Growth and Consumption Trends
1 Well-Positioned to Benefit from Attractive Indonesian Macroeconomic Growth and Consumption Trends GDP Growth CAGR (2017 – 2020F)(1) Polyolefin Consumption per Capita(2) 10% 7.7% Bubble size indicates 6.8% 6.3% 6.2% demand in 2018, million tons 5.4% 8% 4.8% 11 India 3.3% China 2.6% 2.0% 6% Indonesi
Slide 13: Strong Demand Growth for Petrochemical Products in Indonesia
1 Strong Demand Growth for Petrochemical Products in Indonesia End Markets Total Demand Growth (2018 – 2025F CAGR(1)) Plastic films Containers 4.8% Polyethylene Bottles PE Plastic bags 3.8% Packaging Films and sheets Fibers and filaments 5.4% Polypropylene PP Toys 4.4% Automotive p
Slide 14: Six Key Growth Strategic Imperatives, with CAP 2 as the Cornerstone
1 Six Key Growth Strategic Imperatives, with CAP 2 as the Cornerstone Optimize Value Chain Expand Polymer customer Present new High-Value integration through base to absorb capacity Added (HVA) Grades with expansion and increase strong R&D focus debottlenecking of CAP1 Launch Sustainability Implemen
Slide 15: CAP is the Largest Petrochemical Producer in Indonesia
2 CAP is the Largest Petrochemical Producer in Indonesia Capacities of Petrochemical Producers in Indonesia (2019) Capacity ('000 tons per year) s Others Total Ethylene 900 - - - - - - - 900 Propylene 490 - 625 - - - - - 1,115 LLDPE 400 200 - - - - - - 600 HDPE 336 250 - - - - - - 586 Polypropylene
Slide 16: CAP is the Country's Market Leader for its Product Portfolio
2 CAP is the Country’s Market Leader for its Product Portfolio CAP is a market leader in Indonesia across all of its products, and a leading player in the region 1 Largest Petrochemical Company in Indonesia1 Olefin Top 10 South East Asia Producers2 (’000 tons per year) Olefins Polyethylene 5,000 7 4
Slide 17: Strong Brand with Diversified Client Base of Industry Leaders
3 Strong Brand with Diversified Client Base of Industry Leaders, Developed Over Many Years Sales & Marketing Strategy Top 10 Customers (2019) Long term relationships with key customers Customer Products % of Revenue Customer Since Location Network of 300+ customers, with diversified clientele Cu
Slide 18: Strategically Located Key Customers, with Location Proximity & a Proprietary Pipeline
3 Strategically Located Key Customers, with Location Proximity & a Proprietary Pipeline CAP’s Integrated Petrochemical Complexes Inti Everspring Indonesia BASF Indonesia Merak Energi Lobunta Kencana Rhone Poulenc SBL Sulfindo Adiusaha NAOH, Cl2 Santa Fe Sulfindo Adi Usaha. EDC, VCM Indochlor Sauh Ba
Slide 19: Stable & Flexible Feedstock Supply from long-term International Suppliers
4 Stable & Flexible Feedstock Supply from long-term International Suppliers Feedstock Procurement Overview Main Raw Materials (2019) Long-standing stable supplier relationships Naphtha/ 100% No material feedstock supply disruption historically Condensate Flexibility in feedstock purchasing (sp
Slide 20: Strong Commitments from Shareholders, Realizing Significant Partnership Benefits
5 Strong Commitments from Shareholders, Realizing Significant Partnership Benefits Strong commitment from Shareholders The Siam Cement Public Company Limited Prajogo Pangestu 100.00% 71.52% SCG Chemicals PT Barito Pacific Tbk Prajogo Pangestu Marigold Resources(2) Company Limited Public float 41.88%
Slide 21: Barito Pacific Group – A Leading Indonesian Conglomerate
5 Barito Pacific Group – A Leading Indonesian Conglomerate with Diversified Assets Business Description Business Segments1 Barito was originally established in 1979 under the name of PT Bumi Raya Pura Mas Breakdown by FY2019 Sales Breakdown by FY2019 EBITDA PT Barito Pacific Tbk (“Barito”) is a Ka
Slide 22: SCG – Thailand's Largest Industrial Conglomerate and Asia's Leading Chemicals Producer
5 SCG – Thailand’s Largest Industrial Conglomerate and Asia’s Leading Chemicals Producer Business Description Business Segments SCG is a leading business conglomerate in the ASEAN region and engaged in the Breakdown by FY2019 Breakdown by FY2019 Siam Cement Group (“SCG”) is a leading production an
Slide 23: Strong Management Team with Substantial Industry Experience
6 Strong Management Team with Substantial Industry Experience Board of Commissioners DJOKO SUYANTO TAN EK KIA HO HON CHEONG AGUS SALIM LIM CHONG THIAN THAMMASAK TANAWONG President VP Commissioner Commissioner, PANGESTU Commissioner SETHAUDOM(1) AREERATCHAKUL(1) Commissioner Independent Independent C
Slide 24: Solid Track Record of Delivering Operational Excellence and Performance
6 Solid Track Record of Delivering Operational Excellence and Performance In Aug-Sep 2019, we performed a Turn-Around Maintenance (TAM), resulting in lower operating rates vs 2018. The TAM was successfully executed in 51 days vs a budget of 55 days, and we resumed operations in September 2019. Napht
Slide 25: Robust Strategy-Execution with Clear Vision for Profitable and Sustainable Growth
6 Robust Strategy-Execution with Clear Vision for Profitable and Sustainable Growth Cracker Merger New PE, SSBR Expansion with TPI PP BD Plant Cracker operation, MTBE and and and expansion, CAP2 Operation Expansion BD Butene-1 Acquisition Increase PE Furnace expansion of SMI Capacity revamp 8,089 8,
Slide 26: CAP 2 will Deliver the Next Phase of Transformative Growth
6 CAP 2 will Deliver the Next Phase of Transformative Growth 1 SUPPLY 2 CRACKER 3 PRODUCTION PLANTS & OFFTAKE Ethylene (240 KTPA) LDPE Low-density polyethylene (300 KTPA) Ethylene (1,100 KTPA) HDPE High-density polyethylene (450 KTPA) Naphtha (2,800 KTPA) Propylene PP Polypropylene (450 KTPA) (600 K
Slide 27: Covid-19 Resilience Strategy
Covid-19 Resilience Strategy
Slide 28: Our Response To Covid-19 Pandemic Situation
Our Response To Covid-19 Pandemic Situation As measures have been taken by the management in response to Covid-19 pandemic, we navigate the situation by emphasizing 3 key focus areas of Business Continuity, Operational Excellence and Financial Resilience Business Continuity Operational Excellence Fi
Slide 29: Business Continuity
Business Continuity Ensuring the safety and health of employees to manage business continuity Corporate Level Top-down strict policy Screening and Containment (body temperature check, health declaration, zoning system, deep cleaning) Teleconference enhancement Wear face mask and physical distancing
Slide 30: Operational Excellence
Operational Excellence Anticipate plant operation disruptions, maintain supply chain resilience, and ensure smooth logistics and delivery 1 Ensuring smooth and safe plant operations 2 Running the plants at optimum operating rates 3 Managing smooth supply chain and logistics 4 Maintain our supply vol
Slide 31: Financial Resilience
Financial Resilience With strong balance sheet position and liquidity, we are well positioned to weather the crisis Focus Areas Liquidity Pool (in US$mn) Marketable Strong cash balance of US$660m Securities $31 Strong liquidity with RCF line of US$300m Marketable securities of US$31m Explori
Slide 32: 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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