Public Expose 2016 PT Chandra Asri Petrochemical Tbk Jakarta, 6 June - - PowerPoint PPT Presentation

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Public Expose 2016 PT Chandra Asri Petrochemical Tbk Jakarta, 6 June - - PowerPoint PPT Presentation

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Public Expose 2016 PT Chandra Asri Petrochemical Tbk Jakarta, 6 June 2016 1. Company Profile 2. Operational & Financial Performance 3. Project Updates 4. Industry Outlook 2 1. Company Profile 3. Project Updates 2. Operational &

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SLIDE 1

Public Expose 2016

PT Chandra Asri Petrochemical Tbk

Jakarta, 6 June 2016

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SLIDE 2
  • 1. Company Profile

2. Operational & Financial Performance 3. Project Updates 4. Industry Outlook

2

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SLIDE 3
  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates

Company Profile (“CAP”)

 The largest integrated producer of Olefins and Polyolefins in Indonesia.  Producing plastic raw materials and chemicals used in a variety of everyday consumer products (packaging, pipes, jerry cans, automotive, electronics, shoes, etc.).  Owns the only Naphtha Cracker, Styrene Monomer, and Butadiene plant in Indonesia.  The largest producer

  • f

Propylene (470KTA) & Polypropylene (480KTA) in Indonesia.  Sole producer of Ethylene (860KTA); and one of two Polyethylene producers (336KTA) in Indonesia.  Strategic/adjacent plant location with customers in the industrial estate of Cilegon-Merak.  Operates 3 Jetty with capacity of DWT 6K, 10K, and 80K within the plant complex to facilitate logistics.  Majority Shareholders, Barito Pacific Grup* (65.2%) and SCG Chemicals (30.5%) as of May 2016.

Integrated Petrochemical Complex Styrene Monomer Plant Butadiene Plant Naphtha Cracker Polypropylene Plant

Notes: (*) Including the ownership of Marigold Resources and Magna Resources. KTA: Kilo tonnes per annum; DWT: Dead-weight ton

3

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SLIDE 4

Integrated Business Operations

“Integrated business operations from upstream to downstream resulting in higher efficiency, lower costs, and value- added”.

4

New Generation Synthetic Rubber Polypropylene Polyethylene Styrene Monomer Upstream Petrochemical Ethylene Propylene Py-Gas Mixed C4 Midstream Petrochemical Oil & Gas

CAP Products Future products by SRI

Crude Oil

Diesel Kerosene Gasoline

Refinery

Naphtha Cracker

Naphtha LPG Raffinate - 1 Butadiene Condensate

CAP Facility Legend:

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 5

Integrated Business Operations (cont’d)

Notes: (1) LLDPE: Linear Low Density Polyethylene (2) HDPE: High Density Polyethylene

Homopolymer Random Copolymer Impact (Block) Copolymer Ethylene

Key Products Plant Main Process Key Markets

330 KTPA 860 KTPA 430 KTPA 100 KTPA Propylene 470 KTPA Py-Gas 400 KTPA Crude C4 315 KTPA

 Domestic  Exporr  Domestic  Domestic  Export  Export  Domestic  Export  Domestic

Naphtha Cracker licensed by Lummus and KBR.

Polypropylene  W.R. Grace  480 KTPA Styrene Monomer  Licensed by Mobil-Badger and Lummus  340 KTPA LLDPE(1) HDPE(2) Polyethylene  Licensed by Univation  336 KTPA

Naphtha 2,300 KTPA

Butadiene  BASF/Lummus  100 KTPA

Improved margins along the integration of the production value chain 5

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 6

Strategic Location

“Adjacent and interlinked with customer’s facilities (45 km Ethylene pipeline)”.

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Anyer Cilegon Merak Jetty CAP Pipeline New Toll Road Existing Road Puloampel- Serang Main Plant  Main Plant Capacity (ktpa) – Ethylene: 860 – Propylene: 470 – Py-Gas: 40 0 – Mixed C4: 315 – Polyethylene: 336 – Polypropylene: 480  Butadiene Plant: 100 ktpa  On-Site Power Styrene Monomer Plant Capacity 340 ktpa

Sriwie Dongjin Lautan Otsuka Asahimas Polypet PET Polyprima PTA ARCO PPG

Amoco Mitsui

TITAN PE Mitsubishi Kasei PIPI PS and SBL Unggul Indah AB Prointail Statomer PVC Buana Sulfindo Santa Fe Rhone Poulenc SBL Sulfindo Adiusaha NAOH, CL2 Golden Key ABS Multisidia Risjad Brasali EPS, SAN Trans Bakrie Cont Carbon CB Indochlor Sintetikajaya Showa Esterindo Sulfindo Adi. PVC Polychem Redeco Cabot Siemens Hoechst KS Dow Chemical Air Liquide UAP

Existing customers with pipeline access

NSI Sulfindo Adi. EDC, VCM

Indonesia

Cilegon

Main Plant

CAP’s Petrochemical Complexes

N

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 7

Loyal & Broad Customer Base

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Top 10 Customer’s Sales Breakdown  Diversified clientele. Top 10 Customers contribute 40% of revenues in 2015.  Key Customers are loyal customers who have long term relationship.  Convenience for customers who are directly linked with pipes integrated with CAP's production facilities.  Strong marketing and distribution platform with wide network serving ~300+ Customers.  Short delivery trend time resulting in pricing premium to market reference prices. Key Customers

40% 60%

Top 10 Customer's Sales Others

Total Net Revenues 2015: US$1,377 million

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 8

1. Company Profile

  • 2. Operational & Financial Performance

3. Project Updates 4. Industry Outlook

8

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SLIDE 9

Ethylene

Plan Utilization Rate

Polyethylene, Polypropylene, Styrene Monomer, Butadiene  Decline of utilization in 2015 was due to shutdowns in the 4th quarter for Tie-in work of the Cracker Expansion

  • project. In addition, within the 85-day shutdowns period were also conducted a Turnaround Maintenance (TAM).

 1st Quarter -2016, plant utilization showed an increase post Expansion completion in Dec-2015. Cracker plant has a new capacity of 860 KTA (up to 43%) and ramp up gradually to optimum capacity.  Butadiene Plant operates since Sept-2013.

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates

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(dalam %)

94 93 80 89 95 99 92 89 95 74 69 72 76 79 47 76 2013 2014 2015 1Q-16 Polyethylene Polypropylene Styrene Monomer Butadiene 99 94 57 66

2013 2014 2015 1Q-16

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SLIDE 10

10 Ethylene Volume (KT) Price & spread (US$/ton) Propylene Volume (KT) Price & spread (US$/ton)

109 139 19 51 1Q-15A 1Q-16 296 182 32 32 2014A 2015A 59 78 4 18 1Q-15A 1Q-16 447 479 931 552 1.378 1.031 2014A 2015A 375 550 574 376 949 926 1Q-15A 1Q-16 415 256 931 552 1.345 808 2014A 2015A 182 268 574 376 756 644 1Q-15 1Q-16 561 339 189 82 2014A 2015A

Volume and Price by products Olefins

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 11

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Volume and Price by products Polyolefins

Polypropylene

Volume (KT) Price & spread (US$/ton)

Polyethylene

Volume (KT) Price & spread (US$/ton) 477 444 471 449 2014A 2015A 118 105 124 110 1Q-15A 1Q-16 311 224 314 227 2014A 2015A 74 74 74 68 1Q-15A 1Q-16 739 697 931 552 1.670 1.249 2014A 2015A 694 642 574 376

1.268 1.018

Q1-15A Q1-16 711 807 931 552 1.642 1.359 2014A 2015A 712 825 574 376

1.286 1.201

Q1-15A Q1-16

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 12

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Volume and Price by products Styrene Monomer and Butadiene

79 47 82 46 2014A 2015A

Butadiene

Volume (KT) Price & spread (US$/ton)

(1)Styrene Monomer and by products (Toluene and Ethyl Benzene)

Styrene Monomer(1)

Volume (KT) Price & spread (US$/ton)

(3)

16 19 13 17 1Q-15A 1Q-16 250 234 257 230 2014A 2015A 52 60 50 62 1Q-15A 1Q-16 398 391 931 552 1.329 943 2014A 2015A 231 370

574 376 805 746

Q1-15A Q1-16 326 373 1.280 721 1.605 1.094 2014A 2015A 238 390

733 567 971 957

Q1-15A Q1-16

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 13

Financial Highlights: Financial Position FY-2015 and 1Q-2016

31-Dec-2014 (US$ ‘000) 31-Dec-2015 (US$ ‘000) 31-Mar-2016 (US$ ‘000) Changes Yoy (%) Changes Ytd (%) Cash and cash equivalents 207,939 96,835 141,242

  • 53.4

45.9 Current Assets (exclude Cash and cash equivalents) 458,495 319,799 339,572

  • 30.3

6.2 Non Current Assets 1,257,077 1,445,752 1,461,442 15.0 1.1 TOTAL ASSETS 1,923,511 1,862,386 1,942,256

  • 3.2

4.3 Current Liabilities 477,912 377,753 440,255

  • 21.0

16.5 Non Current Liabilities 579,737 597,787 579,753 3.1

  • 3.0

Equity 865,862 886,846 922,248 2.4 4.0 TOTAL LIABILITIES AND EQUITY 1,923,511 1,862,386 1,942,256

  • 3.2

4.3

13

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 14

Financial Highlights: Profit or Loss FY-2015 and 1Q-2016

FY-2014 (US$ ‘000) FY-2015 (US$ ‘000) Changes (%) 3M-2015 (US$ ‘000) 3M-2016 (US$ ‘000) Changes (%) Net Revenues 2,460,051 1,377,573

  • 44.0

357,933 358,895 0.3 Cost of Revenues 2,342,587 1,231,844

  • 47.4

341,186 296,396

  • 13.1

Gross Profit 117,464 145,729 24.1 16,747 62,499 273.2 Operating Profit (Loss) 50,187 79,222 57.9 (531) 45,894 8,742.9 Profit (Loss) For The Year 18,439 26,256 42.4 2,849 35,402 1,142.6 EBITDA 133,762 154,825 15.7 31,299 68,091 117.6 Gross Profit Margin (%) 4.8 10.6 4.7 17.4 Operating Profit Margin (%) 2.0 5.8

  • 0.1

12.8 Net Profit Margin (%) 0.7 1.9 0.8 9.9 EBITDA Margin (%) 5.4 11.2 8.7 19.0

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  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 15

Diverse Product Portfolio

Olefins Polyolefins Butadiene Styrene Monomer Ethylene Py-Gas Propylene Mixed C4 Polypropylene Polyethylene

Established PT Synthetic Rubber Indonesia, JV between SMI and Michelin, to build Styrene Butadiene Rubber plant.

Net Revenues US$869 million Net Revenues US$171 million Net Revenues US$256 million Net Revenues US$78 million 63% 12% 19% Net Revenues FY-2015: US$1,377 million (100%) 6% 15

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 16

358 359 4.7% 17.4%

0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0% 16,0% 18,0% 20,0% 357 358 358 358 358 358 359 359

1Q-2015 1Q-2016 18 26 0.7% 1.9%

0,2% 0,3% 0,4% 0,5% 0,6% 0,7% 0,8% 0,9% 1,0% 1,1% 1,2% 1,3% 1,4% 1,5% 1,6% 1,7% 1,8% 1,9% 2,0%

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8 12 16 20 24 28

2014 2015 2.8 35.4 0.8% 9.9%

0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0%

  • 5,0

10,0 15,0 20,0 25,0 30,0 35,0 40,0

1Q-2015 1Q-2016

Financial Performance

16 2,460 1,378 4,8% 10.6%

0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0%

  • 50

100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1.000 1.050 1.100 1.150 1.200 1.250 1.300 1.350 1.400 1.450 1.500 1.550 1.600 1.650 1.700 1.750 1.800 1.850 1.900 1.950 2.000 2.050 2.100 2.150 2.200 2.250 2.300 2.350 2.400 2.450 2.500 2.550 2.600

2014 2015

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates

Net Revenues (million US$) & Gross Profit Margin (%) Net Profit (million US$) & Net Profit Margin (%)

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SLIDE 17

1. Company Profile 2. Operational & Financial Performance

  • 3. Project Updates

4. Industry Outlook

17

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SLIDE 18
  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates

18 18 DA-415 New Propylene Tower EBR Compressor BA-109 New Furnace

 Achieved Mechanical Completion on 9 December 2015.  TAM/Expansion tie-in works successfully completed on

  • schedule. Cracker re-started with on-spec products on

19 December, 5-days ahead of plan.  Total spending US$378m vs budget of US$380m as of 31 December 2015.  Cracker facility capacity increased to 860 KTA (up to 43%) since early 2016.

Cracker Expansion Project

"With Cracker capacity equivalent to world-class capacity added with plant modernization, CAP further established its position in the petrochemical industry in Indonesia".

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Cracker Expansion Project

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 20

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 EPC contract awarded to Toyo Engineering & IKPT in June 2015.  CAP has fully injected total equity of US$54m.  Overall progress 27% as of May 2016.  Drainage work & temporary site facility completed.  Soil improvement work, civil construction work, structure and building erection, on-going.

Future SBR Plant Facility Area Soil Improvement CCR & Substation Temporary Site Facility

SBR plant project

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 21

1. Company Profile 2. Operational & Financial Performance 3. Project Updates

  • 4. Industry Outlook

21

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SLIDE 22
  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates

80% 82% 84% 86% 88% 90% 100 200 300 400 500 600 700 2009 2011 2013 2015 2017F 2019F 2021F % Utilisation rates Gap over naphtha (Dollars per ton) Ethylene Delta Over Net Raw Material Cost Global utilisation rates

Note:

  • 2015 is based on actual on year to date basis (Jan-Nov)
  • Forecast price is based on Brent Crude at $30 (2016-2020) and $50 (2021-2022) per barrel

60% 70% 80% 90% 200 400 600 800 1000 1200 2009 2011 2013 2015 2017F 2019F 2021F % Utilisation rates Gap over naphtha (Dollars per ton) Polyolefins Delta Over Net Raw Material Cost Global polyolefins utilisation rates

Note:

  • 2015 is based on actual on year to date basis (Jan-Nov)
  • Forecast price is based on Brent Crude at $30 (2016-2020) and $50 (2021-2022) per barrel

SEA Ethylene price spreads over naphtha

“Demand fundamental remain good for petrochemical industry over the next few years, new capacity additions post 2015 resulting in modest decline in average margins following period of sustained higher profitability”

Source: Nexant (Feb 2016)

SEA Polyolefins price spreads over naphtha

Industry Outlook

22

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SLIDE 23

70% 80% 90% 100% 100 200 300 400 500 600 2009 2011 2013 2015 2017F 2019F 2021F % Utilisation rates Gap over net raw material cost (Dollars per ton) Styrene Delta Over Net Raw Material Cost* Global utilisation rates

Note: - 2015 is based on actual on year to date basis (Jan-Nov)

  • Forecast price is based on Brent Crude at $30 (2016-2020) and $50 (2021-2022) per barrel

* Styrene market price less net raw material prices (benzene*.0.78 + ethylene*0.28)

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60% 70% 80% 90% 100% 500 1000 1500 2000 2500 2009 2011 2013 2015 2017F 2019F 2021F % Utilisation rates Gap over naphtha (Dollars per ton) Butadiene Delta Over Net Raw Material Cost Global utilisation rates

Note:

  • 2015 is based on actual on year to date basis (Jan-Nov)
  • Forecast price is based on Brent Crude at $30 (2016-2020) and $50 (2021-2022) per barrel

SEA Butadiene price spreads over Net Raw Material Cost SEA SM price spreads over Net Raw Material Cost

Source: Nexant (Feb 2016)

Industry Outlook (Cont’d)

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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SLIDE 24

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“CAP is a market leader in Indonesia across all of its products and a leading player in the region”.

1000 2000 3000 4000 5000 SCG PTT ExxonMobil Lotte TPC Chandra Asri PCG Chevron Phillips Polytama JG Summit Nghi Son Refinery &… Thousand tons per year HD LL LD PP

Polyolefin Top 10 South East Asia Producers Largest Petrochemical company in Indonesia(1)

Ethylene (2015) Polyethylene (2015) 1 Polypropylene (2015) Styrene Monomer (2015)

Source: CAP, Nexant (Feb 2016) Note: (1) By production excluding fertilizer producers

Total Supply: 1.4M tons Total Supply: 1.6M tons Total Supply: 0.2M tons

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Source: Nexant (Feb-2016)

Total Supply: 1.4M tons

  • 1. Company Profile
  • 2. Operational & Financial Performance
  • 4. Industry Outlook
  • 3. Project Updates
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Thank You

Disclaimer: Important Notice

  • This document was prepared solely and exclusively for the parties presently being invited for the purpose of discussion. Neither this document nor any
  • f its content may be reproduced, disclosed or used without the prior written consent of PT Chandra Asri Petrochemical Tbk.
  • This document may contain statements that convey future oriented expectations which represent the Company’s present views on the probable future

events and financial plans. Such views are presented on the basis of current assumptions, are exposed to various risks and are subject to considerable changes at any time. Presented assumptions are presumed correct, and based on the data available on the date, which this document is assembled. The company warrants no assurance that such outlook will, in part of as a whole, eventually be materialized. Actual results may diverge significantly from those projected. The information in this document is subject to change without notice, its accuracy is not verified or guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Company.

  • None of the Company, PT Chandra Asri Petrochemical Tbk or any person connected with any of them accepts any liability whatsoever for any loss

howsoever arising from any use of this document or its contents or otherwise arising in connection therewith.

Address: PT Chandra Asri Petrochemical Tbk Wisma Barito Pacific Tower A, Lt. 7

  • Jl. Let. Jend. S. Parman Kav. 62-63

Jakarta 11410 Contact: Investor Relations Email: investor-relations@capcx.com Tel: +62 21 530 7950 Fax: +62 21 530 8930 Visit our website at www.chandra-asri.com