Pt Chandra Asri Pacific Tbk · IDX:TPIA
Pt Chandra Asri Pacific Tbk — PT Chandra Asri Petrochemical — Citi 16th Annual Asia Pacific Investor Conference 2019
35 slides from Pt Chandra Asri Pacific Tbk's conference presentation, Feb 28, 2019
Slide 1: Company Presentation
Citi 16th Annual Asia Pacific Investor Conference 2019 Company Presentation Singapore – February 28th, 2019 0
Slide 2: Contents
Contents 1. Company Overview 2. Business Performance 3. Financial Highlights 4. 2019 Priorities 1
Slide 3: 1. Company Overview
Chandra Asrt Petrochemical 1. Company Overview
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 attra
Slide 5: Integrated Production of Diverse Products
Integrated Production of Diverse Products Capacity (KT/A) Use (Examples) Capacity (KT/A) Polyethylene (336) Naphtha Ethylene (860) Styrene Naphtha Monomer consumption of (340) 2,450 KT/A at full Merchant capacity market (430) Polypropylene Propylene (470) (480) Pyrolysis Gasoline (400) Mixed C4 (3
Slide 6: CAP is Indonesia's Largest Petrochemical Producer
CAP is Indonesia’s Largest Petrochemical Producer Capacities of Petrochemical Producers in Indonesia Capacity ('000 tons per year) Polytama Others Total Ethylene 860 860 Propylene 470 608 1,078 LLDPE 200 200 400 HDPE 136 250 386 Polypropylene 480 45 240 765 Ethylene Dichloride 644 370 1,014 Vinyl Ch
Slide 7: CAP is the Indonesian Market Leader
CAP is the Indonesian Market Leader 1 Largest Petrochemical Company in Indonesia(1) Olefin Top 10 South East Asia Producers(3) ('000 tons per year) Olefin Polyethylene 5,000 4,000 3,000 7 Pertamina CAP LCT(2) CAP 2,000 24% 24% 1,000 52% 31% 0 PTTGC SCG PCG Pertamina ExxonMobil IRPC Shell/QPI Lotte C
Slide 8: Strategically Located to Supply Key Customers
Strategically Located to Supply Key Customers CAP’s Integrated Petrochemical Complexes Rhone Poulenc SBL Sulfindo Adi. Sulfindo Adiusaha EDC, VCM NAOH, CL2 Santa Fe Sulfindo Adi. PVC Showa Esterindo Redeco Polychem Styrene Monomer Puloampel- Cont Carbon CB Plant Trans Bakrie Serang Sintetikajaya Cap
Slide 9: Solid Commitment from Shareholders
Solid Commitment from Shareholders Shareholder Structure (as of 31 December 2018) Prajogo Marigold Public(3) Pangestu(1) Resources(2) 41.51% 14.77% 4.75% 30.57% 2.08% 6.32% Barito Pacific Key benefits of partnership Indonesia based conglomerate with business interests in property, Barito Pacific
Slide 10: Strong Management Team with Substantial Industry Experience
Strong Management Team with Substantial Industry Experience Board of Commissioners DJOKO SUYANTO TAN EK KIA HO HON CHEONG AGUS SALIM LOEKI SUNDJAJA THAMMASAK CHOLANAT President Commissioner VP Commissioner Commissioner, PANGESTU PUTERA SETHAUDOM(1) YANARANOP(1) Independent Independent Independent Co
Slide 11: Our Sustainability Footprint
Our Sustainability Footprint In all of its business operations, CAP implements principles of good governance and sustainability. These principles encompass the triple bottom line of People, Planet and Profit. PEOPLE PLANET PROFIT Empowering communities Preserve biodiversity Consistent growth
Slide 12: Empowering Communities and Preserving the Environment
Empowering Communities and Preserving the Environment Health Environment Immunization and family planning services. Converted over 2mn used plastic bags into more than 6km2 of Distribution of milk and supplementary food for infants. plastic-asphalt road that is 40% more durable. Socioeconomic Educat
Slide 13: Sustainability Initiatives – Plastic Asphalt Road
Sustainability Initiatives – Plastic Asphalt Road Plastic Asphalt Road Chandra Asri Plant Area, July 2018 Chandra Asri will support Cilegon City to build 10 KM of plastic asphalt road in 2019 12
Slide 14: Sustainability Initiatives – Waste Bank
Sustainability Initiatives – Waste Bank 13
Slide 15: 2. Business Performance
Chandra Asrt Petrochemical 2. Business Performance
Slide 16: 2018 Overview
2018 Overview Safety Operations Commercial A new milestone: >20mn Production better than plan Sustained premium work hours without LTA Scheduled maintenance activities pricing for polymers Embedded Pause for LIFE effectively executed Satisfactory growth in ways of working Expansion pla
Slide 17: Product Spreads Remain Healthy Through the Cycle
Product Spreads Remain Healthy Through the Cycle (US$/MT) 1,500 1,250 1,000 750 500 250 - Ethylene Polyethylene Naphtha Polypropylene Note: Forecast prices based on IHS 31 January 2019. 16
Slide 18: Strong Track Record of Delivering Operational Excellence and Performance
Strong Track Record of Delivering Operational Excellence and Performance Naphtha Cracker Utilization 99% 99% 103% 100% 99% 102% 100% 97% 97% 94% 95% 90% 92% 65% Ramp-up of new capacity: Q1/2016 2016 2017 9M 2018 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 Polyethylen
Slide 19: Production and Sales Volumes
Production and Sales Volumes Naphtha Cracker Polyethylene Plant (KT) (KT) 855 329 320 327 316 771 259 261 624 450 381 306 2016 2017 9M 2018 2016 2017 9M 2018 Prod Sales Prod Sales Polypropylene Plant Styrene Monomer Plant Butadiene Plant (KT) (KT) (KT) 451 440 356 349 428 427 117 118 392 399 276 276
Slide 20: 3. Financial Highlights
Chandra Asrv Petrochemical 3. Financial Highlights
Slide 21: Resilient Revenue Driven by Diverse Product Portfolio and Increased Capacity
Resilient Revenue Driven by Diverse Product Portfolio and Increased Capacity Revenue by Product Segments Sales Volume (US$m) (KT) 1962 1798 8 1603 1537 139 89 6 64 196 316 264 226 323 340 399 903 706 243 7 261 197 63 167 123 51 567 596 341 306 9M 2017 9M 2018 9M 2017 9M 2018 Ethylene Propylene Py-ga
Slide 22: Strong Financials Further Enhanced by Economies of Scale
Strong Financials Further Enhanced by Economies of Scale (in US$m) Gross Profit EBITDA (Unaudited) Adjusted EBITDA margin 18% 16% 24% 16% 426 430 345 337 97 107 104 105 Q2-18 Q3-18 9M 2017 9M 2018 Q2-18 Q3-18 9M 2017 9M 2018 Net Profit Cash flow from Operations, Capex Net Profit Margin CFO Capex 7%
Slide 23: Robust Balance Sheet Supported by Financial Profile Strengthening
Robust Balance Sheet Supported by Financial Profile Strengthening Cash Balance Debt and Net Debt (US$m) (US$m) Debt Net Debt 843 688 633 633 590 356 * Net Cash * Net Cash * Net Cash position of position of position of US$210m US$277m US$98m 31-Dec-2017 2017 30-Sep-17 30-Sep-18 31-Dec-2017 2017 30-Se
Slide 24: Competitive, Diversified and Well-Sculpted Long Term Debt (1 of 2)
Competitive, Diversified and Well-Sculpted Long Term Debt (1 of 2) Type of debt Principal Outstanding Maturity Interest rate Key Collateral Term Loan US$220m US$26.4m 29 September 2019 LIBOR+Margin 28 November 2023 Term Loan US$199.8m US$159.8m LIBOR+Margin Series A: Series A: Senior Secured IDR500
Slide 25: Competitive, Diversified and Well-Sculpted Long Term Debt (2 of 2)
Competitive, Diversified and Well-Sculpted Long Term Debt (2 of 2) Type of debt Principal Outstanding Maturity Interest rate Key Collateral Senior Unsecured IDR500 billion Notes (IDR) US$32.9m 19 Dec 2021 IDR10.00%pa ~US$32.9m II Phase I 2018 Unsecured JBIC Buyer’s Up to Undrawn 10 Sep 2026 LIBOR+Ma
Slide 26: Capital Expenditure Plan to Pursue Value-Accretive Growth
Capital Expenditure Plan to Pursue Value-Accretive Growth Capex Plan 2018-2020 US$ mn 465 403 136 73 312 16 54 112 16 177 256 6 156 10 10 78 19 25 37 2018LE 2019Plan 2020F BD expansion PE expansion PP expansion Furnace Revamp Others/TAM MTBE & Butene-1 New cracker initial spend 25
Slide 27: 4. 2019 Priorities
Chandra Asrt Petrochemical 4. 2019 Priorities
Slide 28: 2019 Key Priorities
2019 Key Priorities • New 400 KTA Polyethylene Plant to achieve on-spec product by Q4 2019 • 23% increase in Polypropylene capacity to 590KTA with completion of expansion programme by Q4 2019 • Complete Furnace Heater Revamping to increase ethylene and propylene production capacity by end 2019 • Suc
Slide 29: The Petrochemical Industry is in a Long Term Cyclical Phase
The Petrochemical Industry is in a Long Term Cyclical Phase Ethylene Spreads Over Naphtha Gap over naphtha (US$/t) % Utilisation 700 100% 600 Average 2013-2016: US$567 Average 2017-2019: US$568 90% 500 Average 2020-2023: US$424 400 80% Average 2009-2012: US$306 300 200 70% 100 0 60% 2009 2010 2011 2
Slide 30: Attractive Indonesian Macroeconomic Growth and Consumption Trends
Attractive Indonesian Macroeconomic Growth and Consumption Trends GDP Growth CAGR (2017 – 2020F)(1) Polyolefins Consumption per Capita(2)(3)(4) 10% 7.7% Bubble size indicates 6.8% demand in 2016, million tons Projected CAGR 2017-2023F 6.3% 6.2% 8% 5.4% India 9 4.8% 6% Brazil 4 3.3% China Indonesia 3
Slide 31: Strategic Growth via Expansion and Debottlenecking
CAP 1 Strategic Growth via Expansion and Debottlenecking In KTA COMPLETED SSBR PE expansion C2, C3, MTBE operation, BD & PP Debotlenecking and Butene-1 expansion 2016 – 2020 CAGR: 6.2% 4,201 4,201 3,968 233 3,458 510 C2: ∆40KT 3,301 C3: ∆20KT 157 PE: ∆400KT SSBR: ∆120KT MTBE: ∆130KT PP: ∆110KT BD: ∆
Slide 32: Projects are On Stream and On Track
Projects are On Stream and On Track Increase Production Capacity Butadiene Plant Expansion New Polyethylene Plant Furnace Revamp Increase BD capacity by 100 KT/A to 137 New facility of total 400 KT/A to produce Increase cracker capacity by modifying heat KT/A LLDPE, HDPE and Metallocene LLDPE
Slide 33: CAP is Well-Positioned to Benefit from the Demand-Supply Gap in Indonesia
CAP is Well-Positioned to Benefit from the Demand-Supply Gap in Indonesia In KTA Ethylene 3 crackers needed Propylene Butadiene to catch up with 2,216 2,042 427 3,000 domestic demand 2,717 1,122 1,000 1,829 1,041 925 947 1,341 803 1,100 602 137 860 900 455 455 100 283 900 470 492 174 492 122 (94) 20
Slide 34: CAP2 Project Master Schedule
CAP2 Project Master Schedule Gate 1: Sep’17 Gate 3: Q4’19 • Budget approval for Land (partial)/ • Funding structure clarity License/ BEP/ PDP • Budget for EPC Bidding Pre-Launch Stage 1 Stage 2 Stage 3 Stage 4 1. Preliminary Cap 2 Concept 1. EPC Bidding project return 1. EPC Work 1. Complex 1. FEED
Slide 35: Contact and Important Notice
Chandra Asrt Petrochemical Address: Contact: PT Chandra Asri Petrochemical Tbk Investor Relations Wisma Barito Pacific Tower A, Lt. 7 etm Email: JI. Let. Jend. S. Parman Kav. 62°63, 2, +62 215307950 Jakarta 11410 Fax: +62 21 530 8930 Visit our website at “s : . we Important Notice a) ek 4 3 a.’ £74
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