Pt Bank Tabungan Negara (persero) Tbk · IDX:BBTN
Pt Bank Tabungan Negara (persero) Tbk — IPO Roadshow (October 2012)
42 slides from Pt Bank Tabungan Negara (persero) Tbk's IPO roadshow presentation, October 2012
Slide 1: Roadshow Presentation October 2012
PT Bank Tabungan Negara (Persero) Tbk Roadshow Presentation October 2012
Slide 2: Disclaimer
Disclaimer IMPORTANT: The following disclaimer forms part of this presentation, and should be read in conjunction with the other contents of this presentation. This presentation has been prepared by PT Bank Tabungan Negara (Persero) Tbk. (the “Company”) solely for information purposes only and may n
Slide 3: Issuer and underwritten renounceable rights issue terms
Issuer PT Bank Tabungan Negara (Persero) Tbk (“BTN”) Expected exercise price of between IDR1,000 – 1,400(1) Underwritten IDR1,513 – 2,118bn (US$159 – 221m)(1) renounceable rights issue 94,943 rights for every 555,000 existing shares, to issue 1,512,858,200 Class B common shares: ~17.1% of sh
Slide 4: Indicative timetable
Indicative timetable International roadshow Mon – Tue, 22 October 2012 – 30 October 2012 November 2012 Placement Start of bookbuilding Mon, 22 October 2012 M T W T F S S 1 2 3 4 Pricing and trade date (T) Fri, 2 November 2012 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Settlement (T+13) Fri, 23 Nov
Slide 5: Table of Contents
Table of Contents 1 Company Overview 6 2 Key investment highlights 13 3 Additional financial information 31 4 Appendix 38 5
Slide 6: 1. Company Overview
1. COMPANY OVERVIEW Bank @ BTN
Slide 7: Company highlights
Company highlights Largest mortgage provider in Indonesia(1) with over Key statistics(1) (IDR bn) (US$ mn) 110 years of operational track record Market Capitalization (as of 19 Oct 2012) 13,527 1,424 Total assets 98,756 10,395 Dominant market share (c.98%) in government Gross customer loans 76,5
Slide 8: Company ownership and share price development
Company ownership and share price development Share price development since IPO Share ownership composition 2,500.0 250 Ownership # of Shares % GOI 6,354,000,000 71.8% 2,000.0 200 Share Price (IDR) Volume (m) Public 2,489,583,000 28.2% 1,500.0 150 1,000.0 100 Domestic 912,035,519 36.6% 500.0 50 Fore
Slide 9: Liquidity and funding structure
Liquidity and funding structure Strong track record of deposit growth Funding mix (30 September 2012) (in IDR trillions, unless otherwise stated) Repurchase agreements Deposits 4.1% 69 from banks Non-bank 1.1% 62 Securities deposits issued 8.9% 48 40 40 34 32 24 15 18 9 11 13 12 7 5 Third party 2009
Slide 10: Relative capital position
Relative capital position Tier 1 CAR CAR BTPN 20.6% Citibank 24.3% Danamon 18.1% BTPN 21.6% BNI 15.8% Danamon 18.1% Mega 15.4% BNI 17.4% BRI 14.7% OCBC NISP 17.1% (1) BTN 14.5% HSBC 16.7% OCBC NISP 14.4% Mega 16.2% Mandiri 14.0% Mandiri 16.2% BCA 13.7% Bukopin 15.9% HSBC 13.6% BRI 15.9% Panin 12.4%
Slide 11: Indonesia's macroeconomic environment
Indonesia’s macroeconomic environment Largest Southeast Asia economy Strong real GDP growth (2011) Thailand Vietnam 16.8% 6.0% 6.5% 5.9% 5.1% 4.9% Malaysia 13.5% Indonesia 3.7% 41.1% Singapore 11.6% 0.1% Philippines 10.9% Indonesia Vietnam Malaysia Singapore Philippines Thailand 2011 Southeast Asia
Slide 12: Mortgage industry in Indonesia
Mortgage industry in Indonesia Mortgage outstanding (in IDR billions, unless otherwise stated) 50.2% 182,639 45.7% 140,599 32.7% 123,721 108,019 29.9% 83,521 64,676 14.5% 48,743 29.1% 29.3% 13.6% 22,276 32,459 2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A House and apt mortgages outstanding
Slide 13: 2. Key Investment Highlights
2. KEY INVESTMENT HIGHLIGHTS 13
Slide 14: Key investment highlights
Key investment highlights 1 Well regarded franchise and the largest mortgage provider in Indonesia 6 2 Experienced management team Sustained market leadership due to unique competitive advantages 5 3 Strong growth potential Strong asset quality and relatively low-risk business model 4 Extensive dist
Slide 15: Well regarded franchise and the largest mortgage provider in Indonesia
1 Well regarded franchise and the largest mortgage provider in Indonesia Well regarded franchise Leading market share in mortgages (30 June 2012) Long history of operations in the Indonesian mortgage market BTN 22.4% Others 29.6% Recognizable nationwide distribution network Dominant market pos
Slide 16: Well regarded franchise (cont'd): one of four state-owned banks
1 Well regarded franchise and the largest mortgage provider in Indonesia (cont’d) One of only four state-owned banks 71.8%(1) 60.0% 60.0% 56.8% Source: Company filings as of 30 June 2012, except BTN, which is as of 30 September 2012. (1) Will decrease to 60% post rights issue and placement of GOI’s
Slide 17: Well regarded franchise (cont'd): loan composition
1 Well regarded franchise and the largest mortgage provider in Indonesia (cont’d) Total Housing loans Non-housing loans (in IDR billions) 76,566 40,733 25,652 26,384 19,088 12,482 8,816 8,831 2,783 5,236 3,792 687 1,647 1,901 Total loans Subsidized mortgages Non-subsidized mortgages Other housing Co
Slide 18: Sustained market leadership due to unique competitive advantages
2 Sustained market leadership due to unique competitive advantages Sustained market leadership Focused on mortgage finance since 1976 Requisite Leverage large and growing pool of middle income customers with its strong and recognized brand credentials and Multiple housing finance awards, inc
Slide 19: Strong asset quality and relatively low-risk business model
3 Strong asset quality and relatively low-risk business model Gross NPL ratios Net NPL ratios 4.4% 4.2% 4.2% 3.7% 4.1% 4.0% 3.4% 3.5% 3.4% 3.5% 4.0% 3.4% 3.7% 3.5% 2.8% 3.4% 2.5% 3.2% 2.4% 2.2% 2.7% 3.3% 2.2% 2.8% Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 De
Slide 20: Strong asset quality (cont'd): FLPP subsidy scheme
3 Strong asset quality and relatively low-risk business model (cont’d) Old scheme – prior to October 2010 Current FLPP criteria – since May 2012 2 types of mortgage subsidies provided by GOI Max price Minimum down Max loan − Interest rate subsidy Category Region (Rp mn) payment (Rp mn) − Down paym
Slide 21: Extensive distribution network
4 Extensive distribution network Total cash outlets, offices and branches Post offices ATMs 711 1,277 640 2,922 1,181 2,661 2,738 335 2,045 415 324 745 286 528 304 316 376 286 111 - 2009 2010 2011 Sep-12 2009 2010 2011 Sep-12 2009 2010 2011 Sep-12 Cash outlets Offices and branches Office and branch
Slide 22: Extensive distribution network (cont'd): PT Pos Indonesia
4 Extensive distribution network (cont’d) PT Pos Indonesia overview Established cooperation in 2005; renewed in December 2010 Post offices electronically connected to BTN on real time basis Offers banking products and services such as opening of bank accounts, deposits and withdrawals, checkin
Slide 23: Strong growth potential
5 Strong growth potential Indonesia nominal GDP per capita Mortgage loan as a % of GDP (2011) (in US$) 88.6% 6,904 6,157 5,465 4,829 40.4% 39.3% 4,255 29.7% 3,797 3,509 15.6% 10.7% 3.7% 2.5% 2.3% USA Taiwan Thailand Philippines Malaysia Singapore Indonesia China India 2011A 2012E 2013E 2014E 2015E 2
Slide 24: Strong growth potential (cont'd)
5 Strong growth potential (cont’d) Indonesia housing price index Housing supply shortage (2011) 130 125 120 115 110 105 100 95 90 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Source: Bank Indonesia, indexed to 100 as of January 2007. Source: www.bps.go.id, www.kemenpera.go.id. Low housing price compare
Slide 25: Strong growth potential (cont'd): Sharia business
5 Strong growth potential (cont’d) Sharia business overview Sharia revenue and revenue contribution (in IDR billions) Sharia business was established in 2005 Operates separately from consumer and 2.3% 2.7% 2.9% 2.9% 3.6% commercial banking As of 30 September 2012, BTN had 50 Sharia branches, 2
Slide 26: Experienced management team: Board of Directors
6 Experienced management team Board of Directors Name: Iqbal Latanro Name: Evi Firmansyah Name: Sunarwa Position: President Director / CEO Position: Vice President Director / COO Position: Managing Director / CRO Years in banking: > 27 Years in banking: > 27 Years in banking: > 27
Slide 27: Experienced management team: Board of Commissioners
6 Experienced management team (cont’d) Board of Commissioners Name: Mulabasa Hutabarat Name: Zaki Baridwan Position: Commissioner Position: President Commissionner - Independent Years in BTN: 4 Years in BTN: 4 Present: Head of Pension Fund Bureau Bapepam-LK of Ministry of Former: Pre
Slide 28: Management initiatives
6 Experienced management team (cont’d) Management initiatives Achievements Successfully listed BTN on the Indonesia Stock Exchange in 2009 Pioneered mortgage securitization in Indonesia − Issued first ever mortgage backed security (MBS) in Feb 2009 − Since then, has issued three further series o
Slide 29: Key strategies
Key strategies Increase third party funding and reduce Continue to improve risk management 1 maturity mismatch 2 Increase higher margin loans 3 capabilities Widen distribution reach Standardize loan origination and Open cash outlets in post offices with Increase focus on non-subsidized mortg
Slide 30: Key investment highlights – recap
Key investment highlights – recap 1 Well regarded franchise and the largest mortgage provider in Indonesia 6 2 Experienced management team Sustained market leadership due to unique competitive advantages 5 3 Strong growth potential Strong asset quality and relatively low-risk business model 4 Extens
Slide 31: 3. Additional Financial Information
3. ADDITIONAL FINANCIAL INFORMATION 31
Slide 32: Financial highlights
Financials Financial highlights (in IDR billions, unless otherwise stated) 2009 2010 2011 2009 - 2011 2012 Dec Dec Dec CAGR Sep Total asset 58,448 68,386 89,121 23.5% 98,756 Total loan & financing (gross) 40,733 51,550 63,564 24.9% 76,566 Deposits from customers 40,215 47,546 61,970 24.1% 69,212 Equ
Slide 33: Income statement highlights
Financials (cont’d) Income statement highlights (in IDR billions) 2009 2010 2011 2009 - 2011 2011 2012 Dec Dec Dec CAGR Sep Sep Net profit 506 916 1,119 48.7% 704 1,021 Basic earning per share (IDR) 76 105 127 29.3% 80 116 Net interest margin 4.6% 6.0% 5.8% NA 5.5% 6.0% Cost to income ratio 68.7% 58
Slide 34: Balance sheet highlights
Financials (cont’d) Balance sheet highlights (in IDR billions) 2009 2010 2011 2009 - 2011 2012 Dec Dec Dec CAGR Sep Total assets 58,448 68,386 89,121 23.5% 98,756 Placement with Bank Indonesia and other banks 2,665 2,372 9,778 91.5% 4,424 Securities 2,951 928 734 (50.1%) 736 Government bonds 7,380 7
Slide 35: Loan composition
Financials (cont’d) Loan composition (in IDR billions, unless otherwise stated) 2009 2010 2011 CAGR 2012 Dec Dec Dec 2009 - 2011 Sep Housing loans 38,145 46,710 55,805 21.0% 66,088 Subsidized mortgages 19,088 21,945 25,804 16.3% 25,652 Non-subsidized mortgages 12,482 15,635 18,611 22.1% 26,384 Other
Slide 36: Loan performance and gross NPL breakdown
Financials (cont’d) Loan performance and gross NPL breakdown (in IDR billions, unless otherwise stated) 2009 2010 2011 2012 Dec Dec Dec Sep Current 34,326 43,215 54,051 63,637 Special mentioned 5,037 6,653 7,769 10,110 Performing loans 39,363 49,868 61,820 73,747 Substandard 120 153 177 450 Doubtful
Slide 37: Ratings
Ratings Corporate rating idAA Stable Bond idAA National long term AA(idn) Stable Bonds AA(idn) Bank deposits - domestic Baa3/P-3 currency Stable Bank financial strength D- Baseline credit assessment Ba3 37
Slide 38: 4. Appendix
4. APPENDIX Bank @ BTN 38
Slide 39: Subsidized Housing
Subsidized Housing •Standard houses located in Yogyakarta Indonesia that are covered by subsidized mortgages • At least 36 m2 of building • Maximum sale price of IDR88 million 39 39
Slide 40: Non Subsidized Housing
Non Subsidized Housing • Standard houses located in Bangil East Java Indonesia that are covered by non-subsidized mortgages • Original LTV 80% 40 40
Slide 41: Non Subsidized Housing
Non Subsidized Housing • Standard houses located in West Jakarta Indonesia that are covered by non-subsidized mortgages • Original LTV 80% 41 41
Slide 42: Thank You
Thank You Bank @ BTN
PT Bank Tabungan Negara (Persero) — IPO Roadshow (October 2012) on 6ix