Professional Documents
Culture Documents
November 2010
Best Company In
Indonesia for Corporate
Governance Asia’s Best Companies
2010 2010
Best Indonesian Small Indonesia’s Best
Cap Investor Relations
2009 & 2007 AKR & Sorini
1960’s 1970’s 1980’s 1990’s 2005 2006 2007 2008 2009 2010
Trading business Listed in JSX. Built 2nd Acquired 5 Stagen 50,000 KL Successfully conducted
is expanded sorbitol plant in java river ports in terminal rights issue II.
and China. Bulk terminal China commissioned.
operations expanded Awarded right to
Acquired 1st fuel
distribute subsidized
vessel.
fuel in 2011
200
0.2
100
0 0.0
2005 2006 2007 2008 2009 9M2010 2005 2006 2007 2008 2009 9M 2010
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 infrastructure
i.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
PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 5
Impact of Sorini Divestment on AKR Financials
Pro Forma Financial Statement as of 31 December 2009
Income Statement Balance Sheet
Historical Adjustment Pro Forma Historical Adjustment Pro Forma
Revenues 8,959,842 - 8,959,842 Current Assets 2,694,116 1,674,873 4,368,989
Gross Profit 953,631 - 953,631 Cash or Cash Equivalents 273,694 (115,050) 158,644
Operating Profit 539,968 - 539,968 Proposed Transaction - 2,226,834 2,226,834
Other Income/Expenses (71,713) 1,760,216 1,688,504 Account Receivables 1,298,938 (138,672) 1,160,266
Pretax Income 468,256 1,760,216 2,228,472 Inventories 709,518 (246,119) 463,399
Tax Expenses (128,359) - (128,359) Others Current Assets 411,966 (52,120) 359,846
Net Income 274,719 1,760,216 2,034,935
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
Key Important Date
Total Assets 6,059,070 946,658 7,005,729
• CSPA Date : 15 Dec 2010
Current Liabilities 2,810,284 (301,282) 2,509,002
• Announcement of EOGM : 27 Dec 2010 Account Payables 1,111,622 (56,753) 1,054,869
• Information Disclosure : 27 Dec 2010 Short-term Debt 1,256,353 (229,601) 1,026,752
• DPS Date : 10 Jan 2011 Other Current Liabilities 442,309 (14,928) 427,381
• Notice to the Shareholders : 11 Jan 2011
Non Current Liabilities 1,021,968 (156,531) 865,437
• EOGM : 26 Jan 2010
Long-term Debt 952,415 (126,439) 825,976
Other Long-term Liabilities 69,553 (30,092) 39,461
9M10 2009
Trading & Distribution 77% 75%
Manufacturing - Sorini 16% 16%
Manufacturing - Others 4% 5%
Logistic 3% 4%
Best Company In
Indonesia for Corporate
Governance Asia’s Best Companies
2010 2010
Best Indonesian Small Indonesia’s Best
Cap Investor Relations
2009 & 2007 AKR & Sorini
(Rp/lt)
Avg. Selling Price (Rp/lt)
6,000 5,606
5,238 5,276 5,404 5,290 5,478
5,500
5,000 4,579
4,298
4,500
4,000
3,500
3,000
09
09
09
09
10
10
10
E
10
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
2011-2012
June 2010
2009
2005
509,185 KL
+
150,000 KL 248,500 KL 509,185 KL 65,000 KL (2011)
+
200,000 KL (JTT phase 2)
Current tank capacity allocation:
• Petroleum:151,035 KL
• Chemicals: 108,150 KL
• Jakarta Tank Terminal (JTT): 250,800 KL
1. Existing mini petrol station, 2. Four-island station, 3. Two-islands station, 4. One-island station
Pictures no2-4 are artist impressions
Subsidized vs. Non Subsidized Fuel Consumpsion (%) (kbpd) Domestic Refined Products Production vs. Demand in 2012
1600 1479
100%
80% 39 39 39 41 40 1200 564
918
60%
800 256 382
40% 152
61 61 61 59 60 38 114
20% 400
472 419
0% 0
2006 2007 2008 2009 2010 Production Demand
Subsidized Non Subsidized Others Fuel Oil Gasolin Diesel
• Increasing fuel prices and demand for subsidized fuel putting pressure on
Indonesian 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 by
limiting consumption of subsidized fuels
• Roadmap laid to remove subsidies in full by 2014 – opportunities for players in
downstream sector
Annual Fuel Subsidies Allocation 2001 -2011 (Rp, Trillion) 2010 Fuel Subsidies Allocation vs. Public Expenditure (%)
180 160
160
Line Ministries Others, 3%
140 Expenditure, Fuel Subsidy,
120 35% 8%
93 96
100 88
80 73 67 Interest Subsidies, 19%
62 58
60 Payment, 10%
40 Non-Fuel
40 32 32 Subsidy, 11%
Transfer to
20 Region, 33%
-
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
E
05
06
07
08
09
10
20
20
20
20
20
20
2001 Oct 2005 2006 - 2007 2008 - 2009 2010 onwards
Business Flow
Medan
Terminals
509,185 KL
Kalimantan
Pontianak
Petroleum tanker
Sumatra Sanga Sanga* 3,000 KL
Palembang
Stagen
Banjarmasin * SPOB and chartered
Lampung Jakarta
Semarang
Tonasa * barges
Banten Eastern Part 40,307 KL
Surabaya
Bandung
Benoa Bali
Jawa
Trucks
Over 200 units
* Floating Storage
1,500
1,000
500
09
09
09
09
10
10
10
E
10
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
Manufacturing
24 hours
• Sorini has extended its production to other type of starch sweeteners as well
as going up stream producing tapioca starch
• Sorini was incorporated in 1983 and listed in the Indonesian Stock Exchange
since1992 with ticker code: SOBI
400
288
245
BTJ (45,000MT) 300
245
200 244
SUMATRA 228
215
78 90
30 30
-
2005 2006 2007 2008 2009 2010
Starch Starch sweeteners
Bandar
Lampung
STBC (55,000MT)
Sorini Kedaton (30,000MT) Surabaya
Jakarta
JAVA
1,400 1,339
400 120
1,200
94
1,042
302
1,000 300 80
256 67
807
800
200 40
159 28
600
400 100 0
9m10
FY06
FY07
FY08
FY09
9m10
9m10
FY06
FY07
FY08
FY09
FY06
FY07
FY08
FY09
Sales Volume ('000 MT) Gross Margin Return on Equity
320 35.0% 30.0%
27.9%
32.5% 29.1% 25.0%
288 289 30.0%
290
20.0% 18.8%
17.6%
25.0%
264
22.3%
260 15.0%
246 12.8%
20.0%
17.4% 8.6%
18.0% 10.0%
230
15.0%
215 5.0%
FY07
FY08
FY09
3Q09
4Q09
1Q10
2Q10
3Q10
3Q09
4Q09
1Q10
2Q10
3Q10
PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 26
Khalista – Catering Domestic Sorbitol Market in China
(MT) Quarterly Volume
19,651
20,000
60,000 58,444
50,000
40,000
3Q09 4Q09 1Q10 2Q10 3Q10
• AKR through subsidiary ,PT Arjuna Utama Kimia or Aruki (99.99% owned by
AKR), 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 its
shareholding 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
Other Businesses
(Rp, bn) Quarterly Revenue 40% YoY (Rp, bn) Quarterly Net Profit 4% YoY
3,500 3,317 90 83 85
81
3,000 2,653 2,789 70 71
2,371 2,433 70
2,500
2,000
50
1,500
1,000 30
3Q09 4Q09 1Q10 2Q10 3Q10 3Q09 4Q09 1Q10 2Q10 3Q10
Key Ratio
Receivable Days 54 46
Inventory Days 38 29
Payable Days 54 49
Net Gearing (x) 0.71 0.88
(Days) (x)
1.20 1.12
65
1.10
60 1.00 0.88
60 0.90 0.79
53 54 0.76
55 52 0.80 0.71
54 0.70 0.64 0.64
50
46 51 0.60
45 49
45 42 0.50
41
44 0.40
40 3M09 6M09 9M09 12M09 3M10 6M10 9M10
41
39 39
35 38
34 35 Loan Breakdown
30 32 33
29 Entity Loan (Rp Bio) %
25 AKR 660 29%
Usaha Era Nusa Pratama 3 0%
20 Guigang Ports 312 14%
Khalista 19 1%
09
09
09
10
10
10
09
3M
6M
9M
3M
6M
9M
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
To fund part of the long term working capital and capital expenditure plans,
raised Rp 531 billion (net) through Rights Issue in 1Q10
Site Plan
Tank No. 12 Tank No. 13
PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 37
Outlook & Strategies 2010
Chemicals
• Strong domestic demand for basic chemicals from consumer industries arising
from 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
100.0%
99.96% Khalista (Liuzhou) 99.99% AKR Guigang 93.98%
PT Arjuna Utama Kimia PT Usaha Era Nusa
Chemical Industries Ltd Guangxi Container
Pratama
Port
68.82% (2)
99.99% PT Andahanesa AKR Guigang Port 100.0%
PT Sorini Agro Asia
Abadi Co
Corporindo Tbk.
AKRA
Mailing address:
PT AKR Corporindo Tbk.
Wisma AKR, 8th Floor
Jl. Panjang no.5, Kebon Jeruk
Jakarta 11530
Indonesia
Contacts:
V Suresh Teguh Sunyoto
Director – Investor Relations Manager
AKR Corporindo Tbk. AKR Corporindo Tbk.
e-mail suresh.vembu@akr.co.id e-mail teguh.sunyoto@akr.co.id
ph +62 21 531 1177 ph +62 21 531 1110
cell +62 8128255911
Disclaimer: This communication is solely for the addressee(s) and may contain confidential or privileged information. This publication
does not have regard to specific investment objectives, financial situation and the particular needs of any specific person or entity who
may receive this report. Accordingly, neither we nor any of our affiliates nor persons related to us accept any liability whatsoever for any
direct, indirect or consequential losses or damages that may arise from the use of information or opinions in this publication. Many
factors, including those discussed more fully elsewhere in this release and in PT AKR Corporindo Tbk Or its affiliates' filings with the
respective regulatory authorities particularly their quarterly financial statements, annual reports, corporate presentations as well as
others, could cause results to differ materially from those stated. Opinions expressed may be subject to change without notice. Please
contact us if you do not wish to receive these communications in the future.
PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 41