Pt Avia Avian Tbk · IDX:AVIA
Pt Avia Avian Tbk — Investor Presentation (2022)
31 slides from Pt Avia Avian Tbk's investor presentation, 2022
Slide 1: PT Avia Avian Tbk 2021 Investor Presentation
PT Avia Avian Tbk 2021 Investor Presentation
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 presentation team
Avian Brands presentation team Ruslan Tanoko Robert Tanoko Kurnia Hadi Vice President Operations & Finance Director Director Development Director ruslan.tanoko robert.tanoko kurnia.hadi @avianbrands.com @avianbrands.com @avianbrands.com 3
Slide 4: Table of content
Table of content 1 Company overview 2 Business overview 3 Financial performance Avian World Strategy and future 4 outlook 4
Slide 5: Company Overview
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Slide 6: Avian Brands FY21 snapshot
Avian Brands FY 21 snapshot SALES GROSS PROFIT EBITDA NET PROFIT IDR 6.78 T IDR 2.83 T IDR 1.99 T IDR 1.43 T ( US$ 473 m ) ( US$ 197 m ) ( US$ 139 m ) ( US$ 100 m ) 41.7% 29.3% 21.2% C o n s u m e r s FOUNDED EMPLOYEES COVERAGE CUSTOMERS 1978 7,700+ 34 Provinces 54,500+ 98 Cities Retail shops Note(s
Slide 7: Avian Brands shareholders' structure (as of Dec 2021)
Avian Brands shareholders’ structure (as of 31 Dec 2021) Robert T (2.27%) PT Wahana PT Tancorp Public Rudi T (1.68%) Lancar Rejeki Surya Sentosa Rony T (1.68%) 18.98% 6.30% 32.49% 36.60% 5.63% PT Cipta Mortar Utama 50.00% 50.00% 99.99% 99.90% 67.00% PT Bangun PT Tirtakencana PT Solusi Rumah PT Multi
Slide 8: Milestone
Milestone 1978 1981 1985 1986 1992 1996 2000 2005 2006 § Established in § Expanded into § Expanded § Commenced § Invested in a § Established 2nd § Established PT § Expanded into § Awarded ISO Sidoarjo, East wall paint paint product in-house metal can manufacturing Tirtakencana waterproofing
Slide 9: Highly committed and visionary management team
Highly committed and visionary management team Management team has extensive experiences in paint & coating industry with over 38 years proven track records driving Avian’s growth Board of Commissioners Hermanto Tanoko M. Noor Rachman Soejoeti President Commissioner Independent Commissioner • Joined
Slide 10: Business Overview
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Slide 11: Avian Brands is the leader in Indonesia's paints and coatings market
Avian Brands is the leader in Indonesia’s paints and coatings market Market share of decorative paints and coatings in Indonesia, 2020, % by value(1) 20% Others 26% Pacific Paint 4% 15% Nippon Paint Jotun 5% Mowilex 8% 12% Akzo Nobel 11% Propan Raya Avian Brands is leading the decorative paints and
Slide 12: Production excellence underpinned by our vertically integrated manufacturing capabilities
Production excellence underpinned by our vertically integrated manufacturing capabilities New CIREBON Factory • Construction to be completed in 2025 • Planned production capacity of 225,000 MT • Supported by backward integration SERANG Factory • Budget of IDR 750bn SIDOARJO Factory • Established:199
Slide 13: Supported by leading R&D facilities
Supported by leading R&D facilities Avian Innovation Center is One of the Largest Paint R&D Facilities in Indonesia Key Highlights of Avian Innovation Key Areas of Focus for Innovation Center • Strategically located near key production facility • Innovate market leading products • 11 Laboratories eq
Slide 14: Strong track record of delivering innovative and differentiated products
Strong track record of delivering innovative and differentiated products Our Goal: Continuously Anticipating and Catering for Emerging Consumer Needs and Preferences with Innovative and Market-ready Solutions Notable New Products Launched in Recent Years 2019 2020 2021 Sunguard Supersilk Anti No Odo
Slide 15: Architectural solutions product range
Architectural solutions product range Key Product Segments Price Range Premium 5 4 3 2 1 Economic Everglo No Odor Aquamatt ARIES ARIES Sunguard AIO Supersilk AN Gold Avitex Wall Exterior Avitex Platinum Avian Glovin Yoko Wood & Metal No Drop No Drop No Drop No Drop Plaston Bitumen Mortar Waterproofi
Slide 16: Extensive distribution coverage across Indonesia
Extensive distribution coverage across Indonesia 101 Wholly-owned DCs REST OF INDONESIA 33 Third-party DCs 3,500+ 750+ 290,000+ 54,500+ 5,500+ Sales force(1) Delivery Sqm of Retail shops Tinting trucks warehouse machine Note(s): 1. includes sales people, supervisors, and product consultants 16
Slide 17: Business segment
Business segment Architectural Solutions Represents Our Core Paint Business with Trading Goods Operating as a Synergistic Add-on Sales by Segment FY 21 Sales by Customer FY 21 Supporting Paint Trading Goods Modern Outlet Furniture Products(1) … 21.7% 6.3% 3.9% Pipe Wall 16.0% 20.8% Others(2) 7.3% Wo
Slide 18: Commitment in ESG – Product stewardship
Commitment in ESG – Product stewardship Environmental PRODUCT STEWARDSHIP Corporate Health and friendly social that are more eco-friendly safety • Progressively converting to products production responsibility workplace of raw materials used in 75% of product portfolio are water based(1) 43% product
Slide 19: Commitment in ESG - Environment
Commitment in ESG - Environment Environmental ENVIRONMENT Corporate Health and friendly social Management System (since 2012) safety • Obtained ISO 14001 for Environmental production responsibility workplace • Successfully received Blue Proper Certificates 7 times in annual program for Pollution Con
Slide 20: Commitment in ESG - Social
Commitment in ESG - Social Environmental SOCIAL Corporate Health and friendly Health & Safety social safety production responsibility workplace • Obtained ISO 45001 for Occupational Health & Safety Management (since 2009, previously known as OHSAS 18001) • Zero case for fatal work accidents for the
Slide 21: Commitment in ESG - Governance
Commitment in ESG - Governance Environmental GOVERNANCE Corporate Health and friendly • The company implements 5social safety fundamental principles of Good Corporate Governance, production including: transparency, independency, responsibility workplace accountability, responsibility and fairness. •
Slide 22: Financial Performance
Financial Performance 22
Slide 23: Financial highlights
Financial highlights Sales Gross Profit EBITDA Net Profit (IDR bn) (IDR bn) (IDR bn) (IDR bn) margin in % margin in % margin in % 43.7 42.9 41.4 43.9 41.7 28.2 27.0 24.6 28.3 29.3 18.6 20.3 16.9 19.8 21.2 2,826 6,780 1,990 1,435 2,519 2,345 5,670 5,731 2,196 1,624 1,136 5,122 1,385 1,395 1,038 1,882
Slide 24: Architectural solutions and trading goods segment
Architectural solutions and trading goods segment Architectural Solutions Trading Goods Sales Gross Profit Sales Gross Profit (IDR bn) (IDR bn) (IDR bn) (IDR bn) margin in % margin in % 49.1 49.0 48.0 51.8 47.8 17.0 16.3 15.8 15.5 19.5 2,537 1,474 288 5,306 2,329 4,497 4,506 2,161 1,225 2,039 1,173
Slide 25: Balance sheet
Balance sheet Total Asset Total Liabilities Total Equities Cash(1) (IDR bn) (IDR bn) (IDR bn) (IDR bn) 1,458 9,416 10,874 1,362 1,294 1,288 1,186 951 855 5,871 728 4,684 5,053 4,947 4,410 4,219 642 583 3,950 3,367 17 18 19 20 21 17 18 19 20 21 17 18 19 20 21 17 18 19 20 21 Notes: 1 Does not include
Slide 26: Robust cash flow generation
Robust cash flow generation Operating Cash Flow(1) Cash Conversion Rate(2) (IDR bn) (%) 2,009 88.0 90.8 92.3 76.4 1,608 69.3 1,254 1,120 1,020 17 18 19 20 21 17 18 19 20 21 Notes: 1 Operating cash flow before interest and tax payment 26 2. Cash Conversion Rate = (EBITDA – Capex) / EBITDA
Slide 27: We aim to maximize capital allocation
We aim to maximize capital allocation Capex Expansion of Dividend Strategic Investment owned DCs Policy JV or M&A Policy Target: Target: Target: Target: ~2% of sales EBITDA positive Minimum 50% Maximum in 12 months of net profit synergy in decorative paint 27
Slide 28: Strategy and Future Outlook
Strategy and Future Outlook 27
Slide 29: Sustainable growth strategy
Sustainable growth strategy Continuous innovation in R&D in the architectural solutions segments to 1 anticipate market needs and gain market share Maximize distribution network capabilities 2 to accelerate growth Maintain vertical integration in order to 3 achieve superior operational excellence Ac
Slide 30: Why invest in Avian Brands (AVIA : IJ)
Why invest in Avian Brands (AVIA : IJ) Growth opportunities Market leading brands Robust cash flow Innovative products generation Experienced Superior margin profile management team Extensive distribution Vertically integrated coverage Responsible corporate Efficient supply chain citizen 30
Slide 31: Questions?
Questions? 31