Pt Inocycle Technology Group Tbk · IDX:INOV
Pt Inocycle Technology Group Tbk — 9M 2020 Earnings Presentation
38 slides from Pt Inocycle Technology Group Tbk's earnings presentation, Dec 8, 2020
Slide 1: Invest for Our Future
PT Inocycle Technology Group Tbk (“INOV”) INVEST FOR OUR FUTURE Investor Presentation | 9M-2020 Performance | December 08, 2020
Slide 2: Sustainable Lifestyle Initiative
Sustainable Lifestyle Initiative Background Objectives Indonesia is a second largest plastic polluter in the world 01 Promotes Sustainable 01 Lifestyle which in line with SDGs Lack of awareness of recycling lifestyle in Indonesia 02 02 Increase recycling rate in Indonesia INOV needs more PET Bottles
Slide 3: Why Indonesia Needs INOV?
Why Indonesia According to Indonesian Ministry Needs INOV? of Environment and Forestry (KLHK) in 2019, Indonesia Indonesia is the second produces : largest producer of plastic 175K tons waste in the world of waste per day 64 Annually produces 3.22 million metric tonnes (MMT) of million tons unmanage
Slide 4: INOV Production Process: From Trash to Re-PSF
INOV Production Process: From Trash to Re-PSF PET bottles Clean bottles as Flaked Recycled Polyester waste raw materials bottles Staple Fiber (Re-PSF) 04
Slide 5: Inocycle – Hilon Group
INOCYCLE – HILON GROUP 05 1
Slide 6: The Founder’s Journey
The Founder’s Journey THINK LOCAL. ACT GLOBAL PT Inocycle Technology Group Tbk (“INOV”) is part of the HILON Indonesia Group which has over 40 years of experience in the nonwoven and plastic management industry. In 1970, Mr J.H Choi, the founder of HILON, Banda Aceh successfully made Hilon as a well
Slide 7: INOV’s Journey
INOV’s Journey 2001 2011 2013 2014 Tangerang Karanganyar Palembang & Salatiga Karanganyar non-woven plant Re-PSF plant for Non-Woven & Plant established established Homeware Expansion 2016 2018 2019 2020 Mojokerto Mojokerto plant expansion & GRS Certification & IPO, July 2019 Received sustainability
Slide 8: Who is INOV?
Inocycle is an Indonesian Clean-Tech company that A global to Who is focuses on processing & recycling PET bottles and other solution to a INOV? plastic waste into Recycled Polyester Staple Fiber. local problem. Turning waste Established in 2001, under the name of PT Hilon Felt (subsidiary into a re
Slide 9: Vision and Mission
VISION “To become the Biggest Sustainable Eco-friendly Recycled Fiber Company that produces world-class quality product.” MISSION • To produce world class eco polyester fiber with industry professionals • To expand business through ‘PlasticPay’ throughout Indonesia on an ongoing basis. • To provide
Slide 10: Management Team
Management Team COMMISSIONERS Jung Hyo Choi Dr. Ir. Widhyawan Prawiraatmadja President Commissioner Independent Commissioner • Also served as Commissioner of PT Hilon Indonesia • Has held several senior positions in the Government, SOEs, • Previously held several important positions in Korean or mul
Slide 11: Shareholder’s Composition
Shareholder’s Composition 99,99% PT Hilon Indonesia PT Samudera Industri Sandiana Soemarko Public HSBC – Fund Service A/C 45.54% 20.83% 11.24% 16.04% 6.35% PT Urecel Indonesia PT Plasticpay Teknologi Daurulang 45.80% 19.96% As of September 2020 11
Slide 12: Products
PRODUCTS 12 1
Slide 13: Main Product: Eco-friendly Fiber
Main Product: Eco-friendly Fiber Recycled Polyester Staple Fiber (Re-PSF), a synthetic ✓ Highest quality Re-PSF similar to virgin grade fiber from recycled PET ✓ Anti-Static bottles waste. It is an ✓ Anti-Bacterial effective way to utilize the ✓ Flame retardant waste since PET bottle is not bio-degr
Slide 14: Product: Non-Woven
Product: Non-Woven INOV produces various types of Non-Woven products such as Padding, Needle Punch, Geotextile, Thermal bonding, etc. Our products are used as an essential raw The product has several types materials in various industries such including AR, FA, Hal, HDP, Carded Fiber, Padding, and HP
Slide 15: Product: Homeware
Product: Homeware INOV also produces several Home Appliances (Homeware) made from Re-PSF. This is the result of INOV's business vertical integration which has included downstream and upstream channels in integrated PSF production. Pillows, Bolsters, Mattresses, Blankets, Bed Covers, Carpets, Quilt,
Slide 16: INOV’s Products Application
INOV’s Products Application Consumer products that can be produced Re-PSF Non-woven Homeware As stuffing for your plushies, jackets, shoes, etc. As bedding products like As geotextile for constructions, car pillows, blankets, etc. paddings, etc. Re-PSF plant Non-Woven plant Homeware plant • Tangeran
Slide 17: Production Process & Plants
PRODUCTION PROCESS & PLANTS 17 1
Slide 18: From PET Bottle to Re-PSF
From PET Bottle PET Bottle Recycle Operation to Re-PSF PET (Polyethylene terephthalate) bottles, are plastic bottles that are commonly used to store beverages. Waste PET Sorting Crushing Washing Bottle Flake Staple Fiber Production Drying Spinning Stretching Setting & Cutting Bale Packing 18
Slide 19: INOV’s Washing Facilities & Plants
INOV’s Washing Facilities & Plants Raw Material KARANGANYAR PALEMBANG TANGERANG MOJOKERTO SALATIGA PLANT(S) Solo, Central South Plastic flakes Banten East Java Central Java Sumatra Java Re-PSF Non-Woven Homeware Capacity 10,200 10,200 13,200 2,000 2,000 Washing facilities (Tons) • Solo, Central Java
Slide 20: ESG (Environmental, Social, Governance)
ESG (Environmental, Social, Governance) 20 1
Slide 21: INOV received The Sustainability Certification on ESG from The Planet Mark
INOV received The Sustainability Certification on ESG from The Planet MarkTM INOV’s achievements in The Sustainability Certification: Processing 2 billions of plastic bottles waste into resources annually. Reducing carbon footprint to 0.0005 tCO2 emission per production unit. Partially substituting
Slide 22: Progress Made Towards UN SDGs
Progress Made Towards UN SDGs Sustainability certification which we attained by measuring and reducing our carbon footprint from The Planet Mark, can directly and measurably contribute to up to 7 SDGs addressing 25 SDG. INOV is currently contributing to 4 SDGs and 5 SDG Targets 11. Sustainable Citie
Slide 23: Sustainable Improvement
Sustainable Improvement Inocycle’s commitment to sustainable improvement through The Planet Mark by protecting an acre of the world’s most endangered rainforest. 23
Slide 24: Circular Economy
INOV applies the circular economy concept, production A global solution Who is with caring about the environment : to a local INOV? problem. Turning waste CIRCULAR into a resource. Invest in our PROVIDER ECONOMY future. USER MANUFACTURE MATERIAL 024
Slide 25: Safety, Health & Environment
Safety, Health & Environment INOV always prioritizes employee safety at work and we have a GRS (Global Recycled Standard) certification which is one of our concerns for the environment in processing (recycle) PET plastic bottles into new products that are useful for the wider community. INOV already
Slide 26: Financial Highlights 9M-2020
FINANCIAL HIGHLIGHTS 9M-2020 26
Slide 27: Financial Performances FY19
Financial Performances FY19 Revenue (IDR billion) Gross Profit (IDR billion) EBITDA (IDR billion) +25.0% 495 +20.8% -14.0% 396 +47.1% 107 92 +9.5% 327 +43.4% 57 73 52 36 2017 2018 2019 2017 2018 2019 2017 2018 2019 EBIT (IDR billion) Net Profit (IDR billion) Margin +10.8% 51 Gross 46 +55.1% +40.5% 2
Slide 28: Balance Sheet Summary & Key Financial Ratios FY19
Balance Sheet Summary & Key Financial Ratios FY19 Asset (IDR billion) Liabilities (IDR billion) Equity (IDR billion) +20.7% 691 406 -11.3% 331 +38.3% 573 360 +53.9% +98.9% 414 264 +10.8% 166 150 2017 2018 2019 2017 2018 2019 2017 2018 2019 ROE (%) ROA (%) DER (x) Current Ratio (x) 12,00% 4,00% 3.7%
Slide 29: 9M-2020 Performance
9M-2020 Performance Net Sales Gross Profit Net Income In IDR billion -0.4% In IDR billion In IDR billion -15.3% 380 378 -168.6% 73 62 24 76.00% 46.83 104.91% (116.01)% 1,510.60% 35.60 -17 9M19 9M20 9M19 9M20 9M19 9M20 (0.73)% 29.40% Margin (Quarterly) Financial Ratios 9M20 ▪ INOV 9M20 performance wa
Slide 30: Revenue By Product (IDR Billion)
Revenue By Product (IDR Billion) By Product Third and Affiliated 380 378 380 378 2 2 18 116 41 157 59 68 301 267 223 262 76.00% 46.83 1,510.60% 35.60 9M19 9M20 9M19 9M20 Fiber Non-woven Homeware Others Third Party Related Party (0.73)% (95.42)% (20.96)% 29.40% ▪ Sales dropped by 0.4% YoY ▪ Fiber sal
Slide 31: Future Market Opportunities
FUTURE MARKET OPPORTUNITIES 31
Slide 32: Market Opportunities
Market Opportunities Estimated Indonesia Non-Woven Automotive Global Polyester Staple Fiber (PSF) Consumption Forecast Consumption (in Kilotons) (in thousands of Kilotons) 23,5 22,4 21,4 20,4 18,7 19,5 17,0 17,8 15,5 16,2 21,4 17,6 14,4 10,6 2012 2015 2018 [E] 2022 [E] 2016 2017 2018 2019 2020 2021
Slide 33: Market Opportunities
Market Opportunities Polyester Contributed 77% of the Total Non-Woven Upholstery/Beddings Apparel Material Consumption 1,50% Polyester Nylon 8,60% Arcylic Others 12,90% 34,4 27,1 27,9 22,7 77% 2012 2015 2018 [E] 2022 [E] Source : www.fibre2fashion.com, Shinhan Sekuritas Indonesia, Source : Company,
Slide 34: Recycling Trend
Recycling Trend Big companies move in recycling trend 2030 Global Polyester Staple Demand of Fiber(PSF) Market : recycled PET $ 39.3 B by 2025, 50% recycled CAGR of 6.3% 2025 content 100% renewable and recycled 2020 100% rPET (2024) 100% recyclable, 100% recyclable reusable or compostable or reusabl
Slide 35: How We Invest for a Better Future?
HOW WE INVEST FOR A BETTER FUTURE? 35
Slide 36: Invest in INOV
INVEST IN INOV 01 02 03 04 05 INOV is The Only Indonesian ESG & GRS Plastic Bottles The Largest Re- Comprehensive Environmental- Certified by Recycling PSF Producer in Business Model Minded Global Companies in Indonesia & Value Chain Company Institutions Indonesia Stock Market The first waste plasti
Slide 37: Disclaimer
DISCLAIMER The information contained in this presentation material has been taken from sources which we deem reliable. However, none of PT Inocycle Technology Group Tbk and/or its affiliated companies and/or their respective employees makes any representation or warranty (express or implied) or acce
Slide 38: Invest for a Better Future, Invest in INOV
INVEST FOR A BETTER FUTURE, INVEST IN INOV PT INOCYCLE TECHNOLOGY GROUP Tbk Kawasan Industri Pasar Kemis Jl. Putera Utama No. 10, Ds. Suka Asih Kec. Pasar Kemis, Kab. Tangerang 15560 Banten, Indonesia P. 021 590 9629 | F. 021 590 3310 info@inocycle.com www.inocycle.com Corporate Secretary Investor R
PT Inocycle Technology Group — 9M 2020 Earnings Presentation on 6ix