presentasi akra di forum osk singapura 6-7 januari 2011
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8/8/2019 Presentasi AKRA Di Forum OSK SIngapura 6-7 Januari 2011
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Corporate Presentation
November 2010
OSK Asean Corporate Day 2011Fullerton Hotel, Singapore, 6-7 January 2011
Best Company InIndonesia for Corporate
Governance
2010
Best Indonesian SmallCap
2009 & 2007
Best Investor RelationsOfficer
2008
Asia’s Best Companies
2010
Indonesia’s BestInvestor Relations
AKR & Sorini
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2PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Who We Are
Trading businessis expanded
Listed in JSX. Built 2nd
sorbitol plant in javaand China. Bulk terminaloperations expanded
Acquired 5river ports inChina
Stagen 50,000 KLterminalcommissioned.Acquired 1st fuelvessel.
1960’s 1970’s 1980’s 1990’s 2005 2006 2007 2008 2009
Chemicalbusiness isfounded inSurabaya
Built tank andwarehousefacilities. Builtfirst 5,000 MTsorbitol plant
1st privatecompany toimport & distributedunsubsidized fuel
Signed JV withRoyal Vopak tobuild 450,000 tankterminal
Awarded right todistribute subsidizedfuel in 2010.
Acquired coal mining.
• Established in 1960, AKR Corporindo isIndonesia’s largest private distributor of basicchemicals and petroleum with integratednetwork across the country.
• Operates in 9 sea ports and 11 river ports in
two major Asia economic Indonesia & China• AKR listed in Jakarta Stock Exchange in 1994
Brief overview
• Bloomberg Code : AKRA:IJ
• Market Cap (US$ mn) : 730
• Issued Shares (mn) : 3,792
• Major Shareholders (%)
• PT Arthakencana Rayatama: 59.2
• Others : 40.8
Stock data (as of 30/12/10)
50 years growing with the nation
2010
Successfully conductedrights issue II.
Awarded right todistribute subsidizedfuel in 2011
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3PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Strong Historical Performance
Steady Sales Growth Sustainable Net Profit Growth
Rising EBITDA Low Leverage (Net Debt/Equity)
2,8283,970
5,895
9,4768,960
8,538
0
1,000
2,000
3,000
4,0005,000
6,000
7,000
8,000
9,000
10,000
2005 2006 2007 2008 2009 9M2010
(IDR bn)
119 128
191210
275
225
0
50
100
150
200
250
300
2005 2006 2007 2008 2009 9M2010
(IDR bn)
290330
516
762708
492
0
100
200300
400
500
600
700
800
900
2005 2006 2007 2008 2009 9M2010
(IDR bn)
0.350.37
0.63
1.041.11
0.71
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2005 2006 2007 2008 2009 9M 2010
(x)
6 y r s C
A G R =
2 6 %
6 y r s C
A G R =
2 4 %
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4PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Key Investment Highlights
• Leading petroleum and chemical distributor supported with integratedinfrastructure network
• Leading producer of Sorbitol & Starch Sweeteners with strong presence inAsia Pacific & China Capitalizing large opportunity in Indonesia petroleummarket
• Capturing growth opportunities through strategic investment in infrastructureand energy related sector
• Beneficiary of strong domestic consumer demand
• To focus and further strengthen its Petroleum and Chemicals Distribution andLogistic Business in the coming years
Manufacturing
Indonesia China
• Sorbitol• Starch sweeteners• Tapioca starch• Cassava plantation• Wood adhesives
Trading and Distribution
Chemicals Petroleum
• Basic chemicals• Refined petroleum :
• High Speed Diesel• Fuel Oil• Industrial Diesel Oil
Logistic
Indonesia China• Petroleum tank terminal• Bulk terminals – chemicals• Ports & terminal operator• Stevedoring• Warehousing• Physical transportation
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5PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Update on Sorini Divestment
Rationale
• AKRA focus is now re-oriented towards fast growing energy, petroleum and chemicaldistribution and logistics infrastructure
• This divestment of Sorini is at very attractive price, unlocking value of Sorini and will addvalue to the shareholders by enabling to reinvest the proceeds of the divestment in thesefocus businesses.
Use of Proceeds• Strategic investment in an attractive and fast growing energy related sector.
• Further expansion in AKR core expertise in distribution business and logistic infrastructurei.e. tank storage and logistic network to support future growth
• To exploit new market opportunities: Eastern Indonesia and other sectors
• To capture opportunities from subsidized fuel segment deregulation
Number of Shares : 629,166,945 Shares
Sales Price : Rp 3,500 per Share
Proceeds (Net) :Rp 2,179 billion
Or equivalent to : US$ 242 million
Transaction Multiple* : - 27.5x 2010F P/E- 14.5x 2010F EV/EBITDA
* Bloomberg Consensus’s EPS and EBITDA
Transaction Update• On 15 December 2010, AKRA has
entered into agreement (CSPA) to sell629,166,945 shares of Sorini(68.82%) to Cargill at Rp 3,500 pershare.
• The completion of this deal is subjectto AKR shareholders approval in theEGM which will be held on 26 January2011
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6PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Impact of Sorini Divestment on AKR Financials
Balance Sheet
Historical Adjustment Pro Forma
Current Assets 2,694,116 1,674,873 4,368,989
Cash or Cash Equivalents 273,694 (115,050) 158,644
Proposed Transaction - 2,226,834 2,226,834
Account Receivables 1,298,938 (138,672) 1,160,266
Inventories 709,518 (246,119) 463,399
Others Current Assets 411,966 (52,120) 359,846
Non Current Assets 3,364,954 (728,215) 2,636,740
Deferred Tax Assets 68,468 (25,680) 42,788
Fixed Assets 2,859,238 (676,027) 2,183,211
Others Non Current Assets 437,248 (26,508) 410,740
Total Assets 6,059,070 946,658 7,005,729
Current Liabilities 2,810,284 (301,282) 2,509,002
Account Payables 1,111,622 (56,753) 1,054,869
Short-term Debt 1,256,353 (229,601) 1,026,752
Other Current Liabilities 442,309 (14,928) 427,381
Non Current Liabilities 1,021,968 (156,531) 865,437
Long-term Debt 952,415 (126,439) 825,976 Other Long-term Liabilities 69,553 (30,092) 39,461
Total Liabilities 3,832,253 457,813 3,374,439
Minority Interest 485,757 (265,395) 220,362
Equity 1,741,060 1,669,867 3,410,927
Income Statement
Historical Adjustment Pro Forma
Revenues 8,959,842 - 8,959,842
Gross Profit 953,631 - 953,631
Operating Profit 539,968 - 539,968
Other Income/Expenses (71,713) 1,760,216 1,688,504
Pretax Income 468,256 1,760,216 2,228,472
Tax Expenses (128,359) - (128,359) Net Income 274,719 1,760,216 2,034,935
Pro Forma Financial Statement as of 31 December 2009
Key Important Date
• CSPA Date : 15 Dec 2010
• Announcement of EOGM : 27 Dec 2010
• Information Disclosure : 27 Dec 2010
• DPS Date : 10 Jan 2011
• Notice to the Shareholders : 11 Jan 2011
• EOGM : 26 Jan 2010
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7PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Segmental Revenues and Gross Profit
Segmental Revenue Contribution 9M10 vs. 2009
9M10 2009
Trading & Distribution 77% 75%Manufacturing - Sorini 16% 16%
Manufacturing - Others 4% 5%
Logistic 3% 4%
Segmental Gross Profit Contribution 9M10 vs. 2009
9M10 2009
Trading & Distribution 33% 22%
Manufacturing - Sorini 38% 49%
Manufacturing - Others 15% 15%Logistic 15% 15%
Trading and Distribution’s contribution to AKR’s revenues and gross profit willcontinue increasing
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8PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
9M10 Volume Performance and 2010 Estimates
UOM 9M10A 2010E
Trading & Distribution
Chemical MT 950,691 1,133,495
Petroleum KL 826,828 1,314,989 Manufacturing
Indonesia MT 317,352 425,663
China MT 46,817 69,432
Logistic
Indonesia - Cargo/Others MT 5,376,498 7,070,865
Indonesia - Container TEUs 143,070 182,883
China - Cargo/Others MT 3,228,106 4,449,308
China - Container TEUs 33,142 47,313
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9PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Latest Award in Corporate Governance
• Asiamoney’s Corporate Governance Polls
for 2010, announced in December 2010,ranked PT AKR Corporindo Tbk. as theBest Company in Indonesia For CorporateGovernance.
• AKR swept ALL categories of the
Asiamoney Corporate Governance Pollsfor 2010
• The management would like to thank allthe analysts and investors that voted AKRas Indonesia’s best company for
corporate governance in Asiamoney’sCorporate Governance Poll for 2010.
Best Company In
Indonesia for CorporateGovernance
2010
Best Indonesian SmallCap
2009 & 2007
Best Investor RelationsOfficer
2008
Asia’s Best Companies
2010
Indonesia’s BestInvestor Relations
AKR & Sorini
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10PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Corporate Presentation
Trading and Distribution
Indonesia’s largest private distributor of refined petroleum products
Indonesia’s largest distributor of bulk chemicals
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11PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Petroleum Distribution Quarterly Performance
48% YoY 50% YoY
Quarterly Volume
270
320
259293
399364
100
150200
250
300
350
400
450
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E
(k KL)Quarterly Revenue
1,405
1,690
1,3911,642
2,105 2,065
100
600
1,100
1,600
2,100
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E
(Rp, bn)
Avg. Selling Price (Rp/lt)
4,2984,579
5,238 5,276 5,4045,606
5,290 5,478
3,0003,500
4,000
4,500
5,000
5,500
6,000
1 Q 0 9
2 Q 0 9
3 Q 0 9
4 Q 0 9
1 Q 1 0
2 Q 1 0
3 Q 1 0
4 Q 1 0 E
(Rp/lt)
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12PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Latest Development on Fuel Subsidies Policy
• In Nov 2010, subsidized fuel consumption has surpassed quota allocated for2010 of 36.5 million KL.
• The above combined with rising in world oil prices has put a significantpressure on Government budget
• The Government has announced (approved by the House of Representative)
to remove subsidies for private car owner starting Mar 2011.
• According the Government plan, the limitation would be carried out at severalphases:
• Phase 1 – Mar 2011 - the Greater Jakarta Area.
• Phase 2 – Jul 2011 – Java & Bali.
• Phase 3 – 2012 - Kalimantan
• Phase 4 – 2013 - Sulawesi
• Main beneficiary would be foreign retail player such as Shell, Total, Petronas
as at open market competition consumer will prefer buying non-subsidizedproducts from foreign retail gas station for better quality and services.
• AKR through its Jakarta Tank Terminal would be also one of the keybeneficiaries as it is the only Independent storage available in the GreaterJakarta area in anticipating volume growth from foreign retail player.
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13PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Sufficient Capacity to Cater Immediate Volume Growth
• AKR Pioneered construction of Bulk Storage terminals in 1980’s to grow basicchemicals business
• Pro-actively invested in key infrastructural facilities to capitalise on growthopportunities in Petroleum downstream sector
• Platform for maintaining volume growth in the coming years
150,000 KL 248,500 KL
509,185 KL+
65,000 KL (2011)+
200,000 KL (JTT phase 2)
20052009
2011-2012
509,185 KL
June 2010
Current tank capacity allocation:
• Petroleum:151,035 KL
• Chemicals: 108,150 KL
• Jakarta Tank Terminal (JTT): 250,800 KL
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14PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Participating in Retail for future growth
• Large market for subsidized fuel (60% of Indonesia Petroleum Market) beingderegulated
• First time Private companies are allowed to distribute subsidized fuels in 2010
• In September 2010 AKR has been again appointed as the only privatecompany to distribute subsidized 103,220 KL fuels for the year 2011
• Provides a platform to understand and build capabilities to serve this large
market opportunity from AKR network• AKR has set up retail locations in 6 provinces in Outside Java.
– North Sumatra
– Lampung
– West Kalimantan
– South Kalimantan– East Kalimantan
– South Sulawesi
1. Existing mini petrol station, 2. Four-island station, 3. Two-islands station, 4. One-island station
Pictures no2-4 are artist impressions
1 2
43
• AKR has a total of 31retail gas stations (17 of
which are New stationscommencing in January2011) selling subsidizedfuel.
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15PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Large Market For Energy With Limited Supply
• Indonesia consumes 62 million KL of refinedpetroleum products per annum.
• Gap between domestic refinery production anddomestic demand continues to grow 30% of refined products imported
• Fuel Subsidies continue to grow, necessitatingreduction in coming years
Domestic Refined Products Production vs. Demand in 2012
472 419
38 114152
382256
564
0
400
800
1200
1600
Production Demand
Others Fuel Oil Gasolin Diesel
918
1479(kbpd)
Source: Ministry of Finance Source: Pertamina
Source: Ministry of Finance
Subsidized vs. Non Subsidized Fuel Consumpsion (%)
61 61 61 59 60
39 39 39 41 40
0%
20%
40%
60%
80%
100%
2006 2007 2008 2009 2010
Subsidized Non Subsidized
Indonesia Consumption of Refined Products(Million KL)
SubsidizedFuel, 25Non-
Subsidized
Fuel, 37
Non
60%
40%
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16PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Reducing Fuel Subsidies is National Priority
• Increasing fuel prices and demand for subsidized fuel putting pressure onIndonesian Budget
• Fuel subsides in 2010 expected to reach Rp 92.8 trillion ( US$ 10.4 billion)
• Indonesian Government actively planning to reduce the fuel subsidies bylimiting consumption of subsidized fuels
• Roadmap laid to remove subsidies in full by 2014 – opportunities for players indownstream sector
Source: Ministry of Finance
62
32 32
73
40
67
88
160
58
93 96
-
20
40
60
80
100
120
140
160180
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Transfer to
Region, 33%
Interest
Payment, 10%
Line Ministries
Expenditure,
35%
Non-FuelSubsidy, 11%
Fuel Subsidy,
8%
Others, 3%
Subsidies, 19%
Annual Fuel Subsidies Allocation 2001 -2011 (Rp, Trillion) 2010 Fuel Subsidies Allocation vs. Public Expenditure (%)
Source: Ministry of Finance
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17PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Capitalizing on Petroleum Deregulation
• In 2001, the Government allowed privateplayer to distribute refined products
• In 2005, AKR became the first privatecompany to import and distribute non-subsidized fuel and sales volume grew from
only 21,000 KL in 2005 to 1,025 k KL in 2009• In 2009, first private company allowed to
distribute subsidized fuel by BPH Migas for2010
• In 2010, reappointed as the only private
company to distribute subsidized fuel for 2011
2001
Legislation
passed Lawon PetroleumDeregulation
Oct 2005
1st Private
Player toimport Non-subsidizedfuel inIndonesia
2006 - 2007
Significant
growth inSales & Expansionsstoragefacilities
2008 - 2009
Entry into
Kalimantanand Sumatra,servicingmining andpower sectors
2010 onwards
Growth in
Non-SubsidizedFuel & Opportunitiesin SubsidizedFuel Market
Construction
of LargestPrivatePetroleumTank Terminalin Indonesia
Petroleum Sales Volume
21
258
522
671
1025
1315
0
300
600
900
1200
1500
2 0 0 5
2 0 0 6
2 0 0 7
2 0 0 8
2 0 0 9
2 0 1 0 E
(k KL)
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18PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Largest Private Distributor of Non Subsidized Fuel
• AKR imports and distributes petroleum in Indonesia• Main products are High Speed Diesel, Fuel Oil, and Industrial Diesel Oil
• Customers includes mining, manufacture, power generation, plantation, andfishery industries
• Good growth prospects with increasing demand for diesel and shortages indomestic supplies
• Providing value added and customized solutions to customer requirements
Refineries Petroleum Hub Terminal
Customers
Small Vessel
Supplier and transporter
Oil Tanker
Retail Stations
AKR Corporindo
Business Flow
TruckBarge
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19PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Energy distributor with integrated infrastructure network
• Pioneer in establishing key infrastructure in Indonesian ports: operates in 9sea ports and 6 river ports
• Only private sector petroleum distributor with integrated network
• Efficient Supply Chain Management with focus on exceptional reliability,high fulfillment rates, high quality standard, competitive pricing, and top-
notch service that result in a differentiating experience for customers
• Use of innovative technologies to:
• Increase productivity through integrated and automated business processes
• Reduce transportation and fuel costs through better distribution efficiency
• Improve demand planning and fulfillment to increase customer satisfaction andloyalty
Jakarta
Banten
Bandung
Semarang
Surabaya
Benoa Bali
Lampung
PalembangStagen
Pontianak
* Floating Storage
Medan
Sanga Sanga*
Banjarmasin *
Tonasa *Jakarta
Banten
Bandung
Semarang
Surabaya
Benoa Bali
Lampung
PalembangStagen
Pontianak
* Floating Storage
Medan
Sanga Sanga*
Banjarmasin *
Tonasa *
Terminals509,185 KL
Petroleum tanker3,000 KL
SPOB and charteredbarges
40,307 KL
TrucksOver 200 units
Kalimantan
Jawa
Sumatra
Eastern Part
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20PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Largest Distributor of Basic Chemicals in Indonesia
• Raw material for production of consumer goods
– Demand growth in line with Indonesian GDP
• Long term relationship with our Principals
• Strong Supply Chain adds value to customers and Principals
• Minimum Risk :
– Stable margins
– Foreign exchange - natural hedge
T r a d i n g
& D
i s t r i b u t i o n
Key Chemicals Principals Customer Industries
Caustic Soda Liquid
PVC Resins
Hydrochloric Acid
Sodium HypochloriteSoda Ash Dense
Sodium Sulphate
Sulphuric Acid
Methanol
Hydrogen Peroxide
Asahimas Chemical
Solvay
Qing Dao Soda Ash
Lian Yung Gang Soda Ash
LG International
Indo Bharat Rayon
South Pacific Viscose
Rayon industry
Textile industry
Glass & construction
Soaps & detergentsChemicals
MSG
Consumer goods
Pulp & paper
Others
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21PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Basic Chemicals Quarterly Performance
27% YoY26% YoY
Quarterly Volume
225249 261
280 286307
100
150
200
250
300
350
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E
(MT) Quarterly Revenue
380 394
446488 480
554
200
260
320
380
440
500
560
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E
(Rp, bn)
Avg. Selling Price (Rp/kg)
2,1801,915
1,732 1,6271,752 1,757 1,696 1,736
500
1,000
1,500
2,000
2,500
1 Q 0 9
2 Q 0 9
3 Q 0 9
4 Q 0 9
1 Q 1 0
2 Q 1 0
3 Q 1 0
4 Q 1 0 E
(Rp/kg)
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22PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Corporate Presentation
Manufacturing
The world’s second largest producer of Sorbitol
Leading producer of wood adhesive in Indonesia
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23PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Sorbitol Business – World’s Second Largest Producer
• AKR through its subsidiary; Sorini and Khalista is the world’s 2nd largestSorbitol producer
– Sorini (68.82% AKR ownership) is based in Indonesia and the preferredsupplier to global FMCG companies exporting to over 78 countries
– Khalista (100% AKR ownership) is based in China and only cateringdomestic market
• Sorini has extended its production to other type of starch sweeteners as wellas going up stream producing tapioca starch
• Sorini was incorporated in 1983 and listed in the Indonesian Stock Exchangesince1992 with ticker code: SOBI
24 hours
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24PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Sorini - Operation and production facilities
J A V A
SUMATRA
JakartaSurabaya
BandarLampung
Sorini Way Bungur (60,000MT)
BTJ (45,000MT)
Sorini Unit II (30,000MT)
Sorini Kedaton (30,000MT)
SIP (30,000MT)
Sorini Pandaan (232,800MT)
STBC (55,000MT)
Plantation Office (AAM)
Starch Factories
Starch Sweetener Factories
Operational Offices
Production capacity by products ('000 MT)
30 3078 90
195 195
215 228
244245
245288
-
100
200
300
400
500
2005 2006 2007 2008 2009 2010
Starch Starch sweeteners
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25PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Sorini - Primary focus in Asia Pacific
• Higher growth potential from emerging anddeveloping countries where households areimproving incomes and living standards
• Strategically located near the rapidlygrowing and largely populated countries of India and China
• Focused on potential markets in the MiddleEast and Asia Pacific region
• Asian markets combined (includingIndonesia) contribute to over 86% of totalsales value
Sorbitol market share:
Global – 15%
Indonesia – 96%
China – 12%
Japan – 35%
Thailand – 50%
Malaysia – 70%
Philippines – 85%
Singapore – 60%
Vietnam – 45%
Sorini is exporting to over 78 countries
Khalista caters China market
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26PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Sorini - Performance 2006 - 9m10
Sales (Rpbn)
807
1,042
1,493 1,471
1,339
400
600
800
1,000
1,200
1,400
1,600
F Y 0 6
F Y 0 7
F Y 0 8
F Y 0 9
9 m 1 0
GrossProfit (Rpbn)
159
302
462 466
256
100
200
300
400
500
F Y 0 6
F Y 0 7
F Y 0 8
F Y 0 9
9 m 1 0
Net Profit (Rpbn)
28
94
142158
67
0
40
80
120
160
F Y 0 6
F Y 0 7
F Y 0 8
F Y 0 9
9 m 1 0
Sales Volume ('000 MT)
215
246
288 289
264
200
230
260
290
320
F Y 0 6
F Y 0 7
F Y 0 8
F Y 0 9
9 m 1 0
Return on Equity
12.8%
27.9%
18.8%17.6%
8.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
3 Q 0 9
4 Q 0 9
1 Q 1 0
2 Q 1 0
3 Q 1 0
Gross Margin
18.0%17.4%
22.3%
29.1%32.5%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
3 Q 0 9
4 Q 0 9
1 Q 1 0
2 Q 1 0
3 Q 1 0
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27PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Khalista – Catering Domestic Sorbitol Market in China
• AKR through subsidiary, Khalista(100% ownership), is a leadingSorbitol producer in China
• Khalista, commenced operation in
1995, has a installed capacity of 120,000 MT p.a. and is supplying toconsumer goods companies in China
• Main products includes SorbitolSolution, Maltitol Solution, MannitolSolution
• Khalista performance has beenimproving and we expect to have apositive bottom line in 2011
• We are increasing volumes andcontinue implementing variousmeasures to improve profitability
69,950 68,816
58,444
63,033
70,540
40,000
50,000
60,000
70,000
3Q09 4Q09 1Q10 2Q10 3Q10
(Rp, bn)
Quarterly Volume
Quarterly Revenue
19,651
16,577
14,356
15,554
16,907
10,000
15,000
20,000
3Q09 4Q09 1Q10 2Q10 3Q10
(MT)
1% YoY
-14% YoY
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28PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Aruki – Leading Wood Adhesive Producer in Indonesia
• AKR through subsidiary ,PT Arjuna Utama Kimia or Aruki (99.99% owned byAKR), is a leading Wood Adhesive producer in Indonesia
• Established in 1975, Aruki is serving both local and export market.
• In 2007, AKR acquired 65% stake from Mitsui Chemicals to increase itsshareholding to 99.99%
• Aruki contributes nearly to 10% of AKR’s net profit in 2009 and 2010
• Main products includes wood adhesive (90%) and paper chemicals (10%)
• Product applications:
– Plywood
– Block Board
– Particle Board
– MDF Board
– Wood working
– Wood Furniture
– Paper Making
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29PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Corporate Presentation
Other Businesses
Synergy from strategic investmentsin infrastructure and energy related sector
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30PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Coal Mining as a Strategic Investment
• In 2009, AKR acquired 87.5% stakein PT Anugrah Karya Raya, a holdingcompany with 5 coal miningconcessions in the North BaritoDistrict, Kalimantan (Borneo) with atotal area approximately 24,388 Ha
• Expected to mine medium calorificvalue coal with low sulphur content
• The coal mining concessions arelocated nearby AKR’s Muarateweriver port
• Potential markets:
– Indonesian customers– Export to AKR’s Guigang Port in
China for sale to Chinesecustomers after blending
• As with other Indonesian coalproducers, majority of capitalexpenditure for production in thefuture would be funded by miningcontractors
Location of coal miningconcessions - North
Barito District*
Muaratewe
River port
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31PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
China River Ports: As a Hub of South West China
• River Ports in Pearl River in GuigangCity, Guangxi Province, China,acquired in 2006
• The ports are the largest port in PearlRiver, and the 13th largest river port in
China• Modernization of facilities completed
to efficiently handle containers, coal,cement, paper and other bulk cargo
• Current Capacity includes
– Container : 140,000 TEU pa– General cargo : 1,500,000 MT pa
– Bulk cargo : 5,900,000 MT pa
• Profitable Operations; China Portscontributed nearly 10% of
Consolidated profits in 2009
Liuzhou
Guigang
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32PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Corporate Presentation
Consolidated Financial Statements
9 months ended 30th September 2010
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33PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Manufacturing
, 20%
Basic
Chemicals,
17%
Logistic, 3%
Petroleum,
60%Manufacturing
, 23%
BasicChemicals,
20%
Logistic, 4%
Petroleum,
53%
Sales Volumes
Segment UOM 9M10 9M09 Inc (Dec)
Trading & Distribution
Petroleum KL 950,691 705,170 35%
Basic Chemical MT 826,828 655,372 26%
Manufacturing
Indonesia MT 317,352 257,778 23%China MT 46,817 49,020 -4%
Bulk Logistic
Indonesia MT 5,376,498 4,478,948 20%
China MT 3,228,106 2,936,042 10%
Container Logistic
Indonesia TEUs 143,070 148,194 -3%China TEUs 33,142 32,412 2%
9M10 Revenue Breakdown 9M09 Revenue Breakdown
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34PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Income Statements
Quarterly Net Profit
81 83
70 71
85
30
50
70
90
3Q09 4Q09 1Q10 2Q10 3Q10
(Rp, bn)Quarterly Revenue
2,3712,653
2,4332,789
3,317
1,000
1,500
2,000
2,500
3,000
3,500
3Q09 4Q09 1Q10 2Q10 3Q10
(Rp, bn)
in IDR Billion 9M10 9M09 Inc (Dec)
Net Sales 8,538 6,307 35%
Gross Profit 680 720 -6%
Operating Profit 320 427 -25%
Net Profit before Tax 317 347 -9%
Net Profit 225 192 17%EPS ( Full Amount) 61.3 61.4 0%
Key Ratio (%)
Gross Margin 8.0% 11.4%
Operating Margin 3.8% 6.8%
Net Margin 2.6% 3.0%
ROE 12.6% 15.3%
ROA 4.2% 4.6%
40% YoY 4% YoY
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35PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Balance Sheets
In Rp Billion 9M10 9M09
Cash & Cash Equivalent 578 493
Receivables 1,797 1,138
Inventories 1,079 599
Fixed Assets 2,947 2,652
Other Assets 810.47 722.22 Total Assets 7,211 5,604
Payable 1,786 1,214
Total Debt 2,257 1,944
Other Liabilities 322 300
Total Liabilities 4,365 3,458
Minority Interest 470 474
Total Equity 2,376 1,672
Total Liabilities & Equity 7,211 5,604
Key Ratio
Receivable Days 54 46 Inventory Days 38 29
Payable Days 54 49
Net Gearing (x) 0.71 0.88
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36PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Working Capital & Net Gearing
41
4546
53
42
52
54
39
34
29
32 3335
38
41
60
4951
39
44
54
20
25
30
35
40
45
50
55
60
65
3 M 0
9
6 M 0
9
9 M 0
9
1 2 M 0
9
3 M 1
0
6 M 1
0
9 M 1
0
Receivable Days Inventory Days
Payable Days
(Days)
Working Capital Turnover Net Gearing
0.79
0.64
0.88
1.12
0.64
0.76
0.71
0.40
0.50
0.60
0.700.80
0.90
1.00
1.10
1.20
3M09 6M09 9M09 12M09 3M10 6M10 9M10
(x)
Loan Breakdown
Entity Loan (Rp Bio) %
AKR 660 29%
Usaha Era Nusa Pratama 3 0%
Guigang Ports 312 14%
Khalista 19 1%
Total Debt - Without Sorini & JTT 994 44%
Jakarta Tank Terminal (JTT) 491 22%
Total Debt - Without Sorini 1,485 66%
Sorini 772 34%
Total Debt 2,257 100%
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37PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Capital Expenditure 2010-11
To fund part of the long term working capital and capital expenditure plans,raised Rp 531 billion (net) through Rights Issue in 1Q10
Location
Petroleum Terminals
Palembang tanks 6,000 KL
Gabion, North Sumatra tanks 10,000 KL
Stagen, South Kalimantan tanks 30,000 KL
Pontianak, West Kalimantan tanks 19,000 KL
Nilam Utara, East Jawa jetty 65,000 DWT
Transportation Units
Trucks
Petroleum vessels
Add. CapacityType of Assets
Site PlanTank No. 13Tank No. 12
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38PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Outlook & Strategies 2010
Chemicals• Strong domestic demand for basic chemicals from consumer industries arisingfrom robust GDP growth in Indonesia
• We expect 2010 Sales Volume to grow by 20% compared to last year
Petroleum• Increase Sales Volume growth in key sectors including mining, power
generation, bunker, etc
• Further expansion in Tank storage to support growth
• Optimizing through-puts and improving capacity utilization
• New market exploration: Eastern Indonesia and other sectors
• Opportunities from subsidized fuel segment deregulation
Manufacture (Sorini)• Continue focusing on the Domestic market to increase sales volume
• Closely reviewing raw material purchasing and selling price
• Increasing sales of Starch Sweeteners from the new capacities
• Restructuring and improving efficiencies in the Starch plants
• Increasing production capacity of Starch and its utilization facilities
C t St t d h h ldi
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39PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Corporate Structure and shareholding
PT Arthakencana
Rayatama
59.24% (2)
Public
40.76% (2)
Trading and Distribution LogisticsManufacturing
PT Sorini Agro AsiaCorporindo Tbk.
PT Sorini TowaBerlian Corporindo
68.82% (2)
PT SaritanamPratama
PT Agro AsiaManunggal
PT Bumi TapiokaJaya
50.1%
70.0% (1)
(1) PT AKR Corporindo Tbk also owns 30% directly in PT Saritanam Pratama(2) Shareholding as of 30th Novemberl 2010
65.0%
99.99%
Khalista (Liuzhou)Chemical Industries Ltd
100.0%
Indonesia China Indonesia China
PT Arjuna Utama Kimia99.96%
AKR Guigang Port
Co
AKR Guigang
Transshipment Port
AKR Guigang CoalTrading
AKR Guigang
Guangxi ContainerPort
PT Usaha Era Nusa
Pratama
PT Andahanesa
Abadi
PT Jakarta TankTerminal
PT Anugrah Karya
Raya
99.99%
99.99%
51.0%
87.5%
93.98%
100.0%
78.0%
100.0%
Free float >40% - AKR eligible for 5%reduction in corporate tax rate
I i Sh h ld V l
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40PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Increasing Shareholder Value
na113,790225,341***302010**
YearCash Dividend
per Share(Rp)*
Net Profits(Rp Mio)
Dividend(Rp Mio)
PayoutRatio
2004 8 76,117 24,960 32.8%
2005 12 119,289 37,440 31.4%
2006 13 128,084 40,560 31.7%
2007 19 191,208 59,379 31.0%
2008 21 210,033 65,633 31.2%
2009 25 274,718 94,591 34.4%
*adjusted with a 1: 5 stock split
Consistent dividend payout ratio above30% since 2004
Rights Issue and divestment of Majority
shareholder’s shareholding has resultedin enhancement of the stock’s liquidity
AKR will continue the efforts to increaseshareholders value, including by way of investing in fast growing businesses(i.e. petroleum distribution)
Source: Financial Time (3 January 2011)
** Interim dividend payable on 9 Dec 2010
AKRA
** 9M10 net profit
Share Performance 1 Week 1 Month 6 Months 1 Year 5 Years
AKR Corporindo Tbk PT 2.40% 8.23% 66.02% 54.17% 501.27%JSX COMPOSITE INDEX 2.99% 1.01% 29.76% 47.32% 215.15%
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41PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011
Disclaimer: This communication is solely for the addressee(s) and may contain confidential or privileged information. This publicationdoes not have regard to specific investment objectives, financial situation and the particular needs of any specific person or entity whomay receive this report. Accordingly, neither we nor any of our affiliates nor persons related to us accept any liability whatsoever for anydirect, indirect or consequential losses or damages that may arise from the use of information or opinions in this publication. Manyfactors, including those discussed more fully elsewhere in this release and in PT AKR Corporindo Tbk Or its affiliates' filings with therespective regulatory authorities particularly their quarterly financial statements, annual reports, corporate presentations as well asothers, could cause results to differ materially from those stated. Opinions expressed may be subject to change without notice. Pleasecontact us if you do not wish to receive these communications in the future.
Please visit us at www.akr.co.id
Mailing address:PT AKR Corporindo Tbk.Wisma AKR, 8th FloorJl. Panjang no.5, Kebon JerukJakarta 11530Indonesia
Contacts:V Suresh Teguh SunyotoDirector – Investor Relations ManagerAKR Corporindo Tbk. AKR Corporindo Tbk.
e-mail [email protected] e-mail [email protected] +62 21 531 1177 ph +62 21 531 1110
cell +62 8128255911
Thank You