Presentasi AKRA Di Forum OSK SIngapura 6-7 Januari 2011

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



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




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 %




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




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




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




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




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




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





Trading and Distribution

Indonesia’s largest private distributor of refined petroleum products

Indonesia’s largest distributor of bulk chemicals




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)




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.




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




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.




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%




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


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 (%)





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)




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




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




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




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)





Manufacturing

The world’s second largest producer of Sorbitol

Leading producer of wood adhesive in Indonesia




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




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




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




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




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




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





Other Businesses

Synergy from strategic investmentsin infrastructure and energy related sector




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




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





Consolidated Financial Statements

9 months ended 30th September 2010




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




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




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




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%




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




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




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




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%




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

Presentasi AKRA Di Forum OSK SIngapura 6-7 Januari 2011

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Transcript of Presentasi AKRA Di Forum OSK SIngapura 6-7 Januari 2011