Pt Sri Rejeki Isman Tbk · IDX:SRIL
Pt Sri Rejeki Isman Tbk — Non-Deal Roadshow (October 2019)
30 slides from Pt Sri Rejeki Isman Tbk's roadshow presentation, October 2019
Slide 1: PT Sri Rejeki Isman Tbk Company Presentation
Strictly Private and Confidential PT Sri Rejeki Isman Tbk Company Presentation October 2019
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY O
Slide 3: Table of Contents
Table of Contents 1. Company Overview 2. Key Company Highlights 3. Key Financial Highlights 4. Indonesia Textile Industry 5. Appendix A. Company Strategy 2
Slide 4: 1. Company Overview
1. Company Overview 3
Slide 5: Sritex — A Leader in Southeast Asia's Textile Industry
Sritex — A Leader in Southeast Asia’s Textile Industry Sritex is one of the largest vertically integrated textile companies in Southeast Asia, with operations across Spinning, Weaving, Finishing and Garment manufacturing, located in Central Java, Indonesia. Company Overview Business Segments (1H 201
Slide 6: Key milestones – A Long History of Growth and Successes
Key milestones – A Long History of Growth and Successes 1966 2014 2016 2018 Founded by H.M. Lukminto Issued Issued US$350m Acquired BIS and Sales by segment and total EBITDA1 as a traditional trading US$270m 9.00% 8.25% Senior PMJ for US$85m (US$m) company in Pasar Klewer, Senior Notes Notes due 202
Slide 7: Shareholding Structure
Shareholding Structure Sritex Shareholding Structure1 Founder Shares2 PT Huddleston Indonesia2 Public 1.08% 59.03% 39.89% PT Sri Rejeki Isman Tbk Indonesia Singapore 99.90% 99.99% 99.99% 100.0% PT Sinar Pantja Djaja PT Bitratex Industries PT Primayudha Mandirijaya Golden Legacy Pte. Ltd.3 100.0% Gol
Slide 8: 2. Key Company Highlights
2. Key Company Highlights 7
Slide 9: Key Company Highlights
Key Company Highlights 1 One of the largest vertically integrated textile manufacturers in Southeast Asia 2 Strategically located production facilities 3 Superior product quality and broad product portfolio 4 Large and diversified customer base with high customer loyalty Strong financial profile wit
Slide 10: One of the Largest Vertically Integrated Textile Manufacturers in Southeast Asia
1 One of the Largest Vertically Integrated Textile Manufacturers in Southeast Asia Sritex’s vertically integrated business model allows it to offer full solutions to clients supported by economies of scale, consistent high quality, shorter leadUp-stream times, enhanced operational Mid-stream and cos
Slide 11: Strategically Located Production Facilities
2 Strategically Located Production Facilities Close proximity and excellent infrastructure connectivity between Sritex’s production facilities and the port which supports supply chain efficiencies, while availability of a large pool of low cost and skilled labour allows Sritex to maintain its cost c
Slide 12: Superior Product Quality and Broad Product Portfolio
3 Superior Product Quality and Broad Product Portfolio Sritex offers a broad product portfolio and is able to cater to customers’ individual design interests and preferences. Comprehensive Product Portfolio Operating Performance Spinning Weaving Finishing Apparel < 1% of sales subject to claims of
Slide 13: Large and Diversified Customer Base with High Customer Loyalty
4 Large and Diversified Customer Base with High Customer Loyalty The company has a large and diverse customer base which minimizes reliance on any single customer or geographic market. Diversified Geographic Presence Diversified Product Offering (1H2019 Sales Split) (1H2019 Sales Split) Australia UA
Slide 14: Strong Financial Profile with Proven Track Record of Consistent and Profitable Growth
5 Strong Financial Profile with Proven Track Record of Consistent and Profitable Growth Sales Gross Profit and Gross Profit Margin (US$m) (US$m) 22.6% 20.2% 1,034 21.4% 18.5% 17.8% 759 184 171 680 632 145 539 128 100 2016 2017 2018 1H2018 1H2019 2016 2017 2018 1H2018 1H2019 EBITDA and EBITDA Margin
Slide 15: Consistent and Profitable Growth (cont'd)
5 Strong Financial Profile with Proven Track Record of Consistent and Profitable Growth (cont’d) Total Sales Contribution by Segment (US$m) Gross profit margin Sales CAGR by segment (2016-18) (1H2019) 1,034 24% +18.6% 29.3% 759 680 26% 24% 632 +19.3% 25.4% 26% 539 27% 7% 26% 23% +3.6% 16.0% 26% 27%
Slide 16: Experienced Management Team with Proven Track Record
6 Experienced Management Team with Proven Track Record Senior management team with an average of over 20 years of experience led by President Director, Iwan Setiawan Board of Commissioners Board of Directors Hj. Susyana Lukminto Iwan Setiawan Lukminto Karunakaran President Commissioner President Dir
Slide 17: 3. Key Financial Highlights
3. Key Financial Highlights 16
Slide 18: Gross Profit ("GP") by Segment
Gross Profit (“GP”) by Segment Gross Profit Margins (“GPM”) across the Spinning, Weaving, Finishing, and Garment businesses have been relatively stable over the years. Spinning GP and GPM Weaving GP and GPM Sales and GPM (US$m) (US$m) (US$m) Decline in GPM in 2018 driven by 30.0% higher sales contri
Slide 19: Sales and Cost Breakdown
Sales and Cost Breakdown Sales Breakdown (2017) Sales Breakdown (2018) Sales Breakdown (1H2019) Domestic Domestic 39.7% 40.3% Domestic 46.7% Export 53.3% Export Export 60.3% 59.7% Cost Breakdown (2017) Cost Breakdown (2018) Cost Breakdown (1H2019) Selling Selling expenses Selling expenses 1.7% expen
Slide 20: Robust Balance Sheet
Robust Balance Sheet Total Assets Cash and Cash Equivalents (US$m) (US$m) 1,435 1,364 137 127 128 1,193 947 $61 2016 2017 2018 1H2019 2016 2017 2018 1H2019 Total Equity Total Interest Bearing Debt1 (US$m) (US$m) 773 565 721 516 654 442 568 331 2016 2017 2018 1H2019 2016 2017 2018 1H2019 Note: 1. Tot
Slide 21: Significant Investment Over the Years While Maintaining a Robust Capital Structure
Significant Investment Over the Years While Maintaining a Robust Capital Structure CAPEX Spent (US$m) 84 4 67 37 35 25 7 37 35 13 17 2016 2017 2018 1H2019 Maintenance Expansion Payment of advances for fixed assets Debt/EBITDA Ratios1 Interest Coverage Ratios2 4.2x 4.0x 3.8x 3.8x 3.0x 3.5x 2.9x 3.2x
Slide 22: 4. Indonesia Textile Industry
4. Indonesia Textile Industry 21
Slide 23: Indonesia's Textile Industry – Key Updates
Indonesia’s Textile Industry – Key Updates Industry Outlook Update Indonesia Textile Exports (July 2018 – July 2019) Indonesia’s textile industry remains in a healthy condition, with (US$m) exports value targeted to grow to up to US$14.6bn by end of 2019 1,263 1,243 1,199 1,229 1,233 1,104 1,124 1
Slide 24: 5. Appendix
5. Appendix 23
Slide 25: A. Company Strategy
A. Company Strategy 24
Slide 26: Strategy Overview
Strategy Overview 1 Improve Production Efficiency and Reduce Costs Expand Product Offering to Focus on Higher Value 2 Added Products 3 Expand Customer Base Network 25 Supporting Information
Slide 27: Improve Production Efficiency and Reduce Costs
1 Improve Production Efficiency and Reduce Costs Supported by modern production facilities and an integrated quality control system, Sritex has maintained the quality of its production to the point where claims or sales returns amount to less than 1% of total sales. Modern and Superior Production Eq
Slide 28: Expand Product Offering to Focus on Higher Value Added Products
Expand Product Offering to Focus on Higher Value 2 Added Products The Company will increase its focus and production in higher value added products to generate higher margins. 1H2019 Segment Gross Profit Margins1 29.3% 25.4% 16.0% 11.5% Spinning Weaving Finishing Garment Increasing focus on higher-v
Slide 29: Expand Customer Base Network
3 Expand Customer Base Network The Company will continue expanding its customer networks through the implementation of its marketing strategies. Marketing Strategy Geographical Mix1 1H2019 Sales Participate in events and exhibitions relating to the textile 1 and clothing industry Europe Advertise in
Slide 30: Thank You
Thank You CLOTHING THE WORLD Integrated Vertical Textiles – Garments Plant an ISO 9001 & ISO 14001 Certified Company JL. KH. Samanhudi 88 Jetis, Sukoharjo 57511, Solo, Central Java, Indonesia (62-271) 593 188 | (62-271) 593 488 (Fax) The Energy Building 20th Floor SCBD Lot. 11A Jl. Jendral Sudirman
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