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Ap r il 2017
FUNDAMENTALS OF AKR BUSINESS
BASIC
PETROLEUM LOGISTIC JIIPE MANUFACTURING
CHEMICALS
DISTRIBUTION SERVICES
DISTRIBUTION
% of Revenue*
68% 22% 5% 2% 4%
% of Gross Profits* 80% 5% 8% 7%
Industrial/Mining/ Various Industries In Indonesia & China ~2200 Ha of Indonesia & China
Target Market Power/Fisheries in Indonesia industrial and
Independent port estate
Segments Retail Petrol Petroleum Storage
stations Terminal Deep water port
Port handling Complete energy
Caustic Soda and logistic Adhesives
Main Diesel Soda Ash Transportation solution Sorbitol
Products/ Fuel Oil PVC Warehousing
Services Gasoline Acids
Vendor managed 3
*FY 2016 inventory
TRACK RECORD OF DELIVERING SUPERIOR
RETURNS
1 2 3
EBITDA: ROA :
Strategic Investment in JIIPE
Rp 1,521 billion 6.4%
From Rp 330 billion in 2006 to strengthen AKR long term
17% CAGR growth Project aimed at developing Netdebt/Equity :
Recurring Income model and 0.33 x
Net Earnings: strengthen energy, logistics
Rp 1,011 billion and distribution Dividend payout :
From Rp 128 billion in 2005 46% in 2015
23% CAGR growth ( Rp.3,084 billion paid in
dividends from 2005-2015)
4
All information for FY 2016 unless otherwise stated
Business Performance & Strategies
2017 : Improving Operating Conditions in
Mining & Retail segments
15
28 28 29
30
26 26
25
20
With entry into Retail Gasoline & A viation market segments A KR will now
address the complete fuel market o f Indonesia
Break down of Indonesia Petroleum Demand
Kerosene
Diesel -
Sub
Gasoline Ron
Additional 90/92/95
SUBSIDISED (mKL) NON-SUBSIDISED (mKL)
new
Diesel 15 Gasoline RON 88 18 Addressable
Kerosene 2 15 Fuel Oil
Gasoline RON90/92/95 market for
Total 17 16 Gasoline
Diesel AKR Ron 88
Avtur 6 Diesel -
Fuel Oil 3 Non sub
Total 58 Avtur
Sources :Internal 8
AKR STRATEGY FOR RETAIL
Expand from
129 petrol
stations to 144
in 2017
9
AKR – BP explore formation of Retail JV
AKR and BP signed a Heads of agreement for progressing towards a JV on 15th Nov 2016
The joint venture company have ownership
structure with AKR at 50.1% & BP at 49.9%
The purpose and objective of entering into HOA is
to explore the creation of joint venture to establish
and grow retail fuel network to supply premium
quality fuel
Mr Haryanto Adikoesoemo, President Director of AKR and
Mr Richard Harding, VP Commercial Development Downstream
PROPOSED PRODUCT
OFFERING
Retail JV will
High Quality High Quality leverage on
gasoline/Diesel Retail Stores
Lubricants AKR
infrastructure
10
Low Petroleum retail penetration in Indonesia
Phillipines Malaysia
14,000
1,700
1,061770 7,000 8,108
660 400 6,000
300 3,700 2,648
Spreads
11
Source : Internal
Increase in Sales of Higher Octane Fuel
• Diesel & Gasoline • Diesel subsidy reduced to Rp.1000/l • Diesel subsidy reduced to Rp.500/l
subsidized • No subsidy on gasoline & no • Gasoline prices adjusted according
• New station , pricing restriction on pricing & location to international oil prices
subject to control
12
Source : Internal
AKR BP ESTABLISH AVIATION FUEL JV
BP AKR
Air BP is one of the world’s largest AKR with its wide and strong
supplier of aviation fuel infrastructure and supply chain
network provides storage and
Air BP provides the services related to logistic services to JV
Aviation Fuel supplies & handling to
JV 13
INDONESIA IS 5TH LARGEST DOMESTIC
AVIATION FUEL MARKET IN THE WORLD
With Existing 57 Airports and new 15 Airports planned the Aviation Fuel market is poised for
strong growth
Indonesian aviation fuel market is around 6 million KL and growing at 20% p.a.
666
600
550
258
150
In 2015 the government removed subsidies on Gasoline and reduced subsidy on Diesel to a fixed Rp.1000/l and in 2016 now
reduced to Rp.500/l Indonesia Oil Production & Consumption in '000 bopd
2,000 Production
1,800 Consumption
Exit OPEC
1,600
600
Imports now account for more than 50% of consumption Net imports ( '000 bbl/day)
823 803
Government wants to upgrade existing refineries and develop 713 761
637
greenfield refineries but the imports are expected to grow many
fold in coming years 399
346
281 302
207 226
Government also wants to have one price policy across nation for
subsidized diesel, RON 88 Gasoline & kerosene.
Chart Source :bpstatistics 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 16
JAVA INTEGRATED
INDUSTRIAL AND PORTS ESTATE
(JIIPE) PROJECT
Java Integrated Industrial and Ports Estate (JIIPE)
AREA
MARK ZONE (%)
(Ha)
RESIDENTIAL
800 27
ESTATE
9 km
Bunder INDUSTRIAL
1,761 59
ESTATE
SEA PORT
406 14
ESTATE
TOTAL 2,967 100
• Land Area +/- 800 ha • Land Area +/- 465 ha • Land Area +/- 531 ha
• Road Access +/- 9 km to port estate • 500 MW Power Plant (GAS) • 660 MW Power Plant (Coal Fired)
• 23 MW Power plant GAS & MFO • 1000 L/s Water Treatment Plant • 119,8 ha Reclamation Area
• 100 m3/hour Water Treatment Plant • 139,87ha Reclamation Area for • Additional Jetty 3 & 4 (4600 m)
• Marketing & Port operational Back Coal Terminal & Storage Tank
Office • Additional Jetty 1 & 2 (1500 m)
• 80 ha reclamation area
• 250 x 30 m (Jetty 1)
23
Java Integrated Industrial and Ports Estate (JIIPE)
INDUSTRIAL ESTATE & PORT ESTATE > PROGRESS
24
Utilities and supplies for Phase 1 in progress
INDUSTRIAL ESTATE > PROGRESS OTHER UTILITIES
22
Audited Financial performance
FY 2016
FINANCIAL HIGHLIGHT
Audited financial statements FY 2016
ASSETS LIABILITIES
Current Assets Current Liabilities
Cash and cash equivalents 1,367 Trade payables 3,184
Trade receivables 2,569 Short term bank loan & others 824
Inventories 862 Current maturities of long-
Industrial estate land inventory 2,270 term bank loans & Bond 1,383
Other current assets 323 Other current liabilities 425
Total Current Assets 7,391 Total current liabilities 5,816
25
Maintain Strong Balance sheet with Low
Leverage
Net gearing(x)
0.81
PEFINDO affirmed
0.54 “idAA-” rating for
0.35 Corporate & Bond
0.30 0.33 rating
Leverage
Current ratio x 1.27 1.50
Debt / equity x 0.59 0.63
Net gearing x 0.33 0.35
27
CORPORATE PROFILE
KEY MILESTONES OVER 5 DECADES
2012-
2010 2016
2005 Retail station JIIPE
1994 Petroleu JIIPE
1980’s GO m AKR and
Started
Infrastructur PUBLIC Pelindo III
1970’s Commenced
distributing
e subsidized jointly
1960’s Incorporatio Petroleum petroleum in develop Java
AKR
Trading n conducted
distribution Indonesia. Integrated
AKR business Industrial and
business commenced IPO Ports Estate
PT Aneka Listed on (JIIPE)
Kimia Raya building of
Chemicals storage tanks Indonesia
trading Incorporated and Stock
business on November warehouses Exchange
28, 1977. in several
Founded in
major ports
Surabaya.
in Indonesia.
Nov. 2016
Signing of JV for Aviation
Fuel supplies with Air BP &
HOA for Retail with BP
29
Impressive growth in Profits and Payout
1,034 1,011
Net Income Rp. bi llion 810
619 649 648
+23%10yr
275 311
CAGR 128 191 210
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Shareholder Composition
(as of 31st Jan 2016)
Total Outstanding 3,991,781,170
Shares
Market Cap* ( Rupiah Rp. 27.34
trillion)
Public Market Cap* (US$b) US$ 2.0
( as on 31 th Jan’17)
40.70% PT Arthakencana
Rayatama
Constituent of MSCI
58.58% Global index
Management
0.72%
LQ- 45 index
IDX 30 index
31
Recent Awards
Forbes Award for Top 50 companies in In Top 50 listed companies for Good Corporate governance
Indonesia and winning 3 years in a row by Indonesian Institute of Corporate directorship
Best Annual report award 3 rd SWA award for Best Most innovative business in
year in a row Wealth Creator Wholesale category in Indonesia 32
FORWARD‐LOOKING STATEMENTS
These materials have been prepared by PT AKR Corporindo Tbk (the “Company”) and have not been
independently verified. No representation or warranty, expressed or implied, is made and no reliance
should be placed on the accuracy, fairness or completeness of the information presented or contained in
these materials.
The Company or any of its affiliates, advisers or representatives accept no liability whatsoever for any loss
howsover arising from any information presentated or contained in these materials. The information
presented or contained in these materials is subject to change without notice and its accuracy is not
guaranteed. These materials contain statements that constitute forward-looking statements. These
statements include descriptions regarding the intent, belief or current expectations of the Company or its
officers with respect to the consolidated results of operations and financial condition of the Company. Such
forward-looking statements are not guarantees of future performance and involve risks and uncertainties,
and actual results may differ from those in the forward-looking statements as a result of various factors and
assumptions. The Company has no obligation and does not undertake to revise forward-looking statements
to reflect future events or circumstances.
These materials are for information purposes only and do not constitute or form part of an offer, solicitation
or invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor
should it or any part of it form the basis of, or be relied upon in any connection with, any contract,
commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities of
the Company should be made after seeking appropriate professional advice.
Thank You