Public Expose 2017 Presentation
Table of Contents
1. Company Overview
2. Key Credit Highlights
3. Growth Plans
4. Financial Highlights & Projections
5. Petrochemical Industry Outlook
1.
Company Overview
Chandra Asri Petrochemical at a Glance
Market leadership in highly attractive Indonesia and SE Asia petrochemical market
̶
c. 35% market share of Indonesia’s olefins and polymers production capacity
Long-standing relationships with diverse customer base:
̶
No single customer accounts for more than 7% of consolidated revenue
̶
In 2016, 74% of products by revenue were sold to domestic market
Integration from upstream cracker to downstream polyolefin products
̶
Strategically located near key customers
Low production cost base and operating efficiencies
̶
Benefit from scale of feedstock sourcing and stable supplier relationships
̶
Naphtha cracker utilization rate of 98% in 1H2017
Transformed in 2016 following the 4Q2015 Naphtha Cracker expansion, resulting in
Adjusted EBITDA increase, reinforced balance sheet, and a more diversified product mix
̶
2015 – 2016 Adjusted EBITDA growth of +229%
̶
Reduced debt and Debt / Adjusted EBITDA at 0.8x
Captive distribution network provides significant cost efficiencies
̶
Key customers integrated with CAP production facilities via CAP’s pipelines
̶
Provides significant cost efficiencies to key customers
New projects fueling strategic growth
̶
Projects include partnership with Michelin to expand downstream products, new
polyethylene plants, debottlenecking, and other efficiency improvements
̶
Evaluation of a second petrochemical complex underway
Strong and experienced management team
CAP’s main integrated manufacturing complex
2015 Revenue
US$
1,378m
2016 Revenue
US$
1,930m
Support from Barito Pacific Group and Siam Cement Group
Vital National Object status
We are the largest integrated petrochemical producer in Indonesia, and own the only naphtha
cracker, styrene monomer and butadiene plants in Indonesia
3
25 Year Track Record of Successful Growth
CAP
510m
2015
155m
(US$)
2.1bn
134m
Adjusted
EBITDA
Appointed Toyo Eng. Corp for
construction of SBR Plant
2011
Refinanced US$150m loan
Merger of CA and TPI
with lower cost US$94.98m
effective from 1 Jan 2011
7-year term loan
Completed debottlenecking in Apr 2011
to raise polypropylene
capacity to 480 KT/A
1.9bn
1.9bn
Total
assets
2014
2015
2010
2007
Added extra furnace,
increasing ethylene
Product
production by 80
expansion
KT/A
through
Acquisition of 100%
selling of
shares of SMI
Mixed C4
2004
1995
CA
Commercial
production
begins at CAP
with initial
cracker
capacity of 520
KT/A
2004
1992
TPI
1992
1995
1993
1993
Started
commercial
production of
polypropylene
comprising
annual capacity
of 160 KT/A
Increased
capacity of
polypropylene
plant to 240
KT/A
Increased
capacity of
polypropylene
plant to 360
KT/A
SCG acquired 30% of CAP
from Barito Pacific and
Apleton Investments
Limited
2015
2013
2011
2009
2013
Formed JV with
Michelin (SRI) in June
2013 for construction of
SBR Plant
Commenced operation
of Butadiene plant in
Sept 2013
Secured funding for
cracker expansion:
2009
1995
Issued
inaugural
5-year
US$230m
Bond
2010
2007
2017
2016
2016
Completed cracker expansion
project in Dec 2015 to raise
capacity to 860 KT/A
Increased
capacity of
polypropylene
plant to 480
KT/A
2016
Public offering of CAP
I Bonds 2016
Received upgraded
corporate rating from
Moody’s from B2 to
B1 and revised rating
outlook from S&P
from Stable to
Positive B+. Received
idA+ rating from
Pefindo
2017
Received
upgraded
corporate rating
from Moody’s
from B1 to Ba3
US$378m rights
issue in Sep 2017
− US$128m rights
issue in November
2013
− US$265m TermLoan facility
Track record of achieving operational and structured growth
4
Vision and Business Strategy
Vision to be Indonesia’s Leading and Preferred Petrochemical Company
1
Increase capacity and build on leading market position
2
Expand product offerings and further optimize integration along the
petrochemical value chain
3
Develop feedstock advantage to improve cost competitiveness
4
Develop and nurture human capital
5
Continue to strengthen and leverage the Company’s advantage to maintain
premium relationship with stakeholders
6
Maintain and further improve best-in-class operating standards, cost efficiency,
and safety, health and environment
5
Integrated Production of Diverse Products
Capacity (KT/A)
Capacity
(KT/A)
Polyethylene (336)
Naphtha
Ethylene (860)
Naphtha
consumption of
2,450 KT/A at full
capacity
Use of Goods (examples)
Styrene
Monomer (340)
Merchant
market (430)
Polypropylene (480)
Propylene (470)
Pyrolysis
Gasoline (400)
Mixed C4 (315)
Support
facilities
Co-generation
plants
Butadiene (100)
Utilities &
facilities
Water
facilities
Jetty
facilities
(
CAP’s products encompass a wide range across the consumer products value-chain, and its
leading position and strategic location enhances its competitiveness
6
2.
Key Credit Highlights
Key Credit Highlights
Attractive industry outlook
1
Well-positioned to benefit from attractive Indonesian growth
fundamentals
2
3
4
High degree of operational integration
5
Diversified customer base and strategically located to supply
key customers
6
7
8
Indonesia’s leading petrochemical producer with a diverse
product portfolio
Diverse and secured sources of feedstock and raw materials
Strong shareholder support
Highly experienced management team with proven track record of
managing and expanding operations
8
1
Attractive Industry Fundamentals Providing Tailwinds
for Petrochemicals Demand Growth in SEA
Polyolefins Demand in SEA Expected to Outpace Global
Market Growth…
Polyethylene consumption growth (2017 – 2023E CAGR)
(US$/t)
850
800
4,4%
3,9%
3,4%
Polyolefin Spreads Expected to Remain Resilient
750
700
Global
SEA
Indonesia
650
600
Polypropylene consumption growth (2017 – 2023E CAGR)
500
4,7%
4,2%
3,6%
550
450
400
Global
SEA
350
Indonesia
2009
…while Asian Naphtha Prices Remain Below Historical
Average
(US$/t, real prices)
2011
900
2015 2017F 2019F 2021F 2023F
LDPE - Naphtha
HDPE - Naphtha
(US$/t)
1200
2013
LLDPE - Naphtha
PP - Naphtha
Last 5 Years Average
Next 5 Years Average
LDPE – Naphtha
662
754
LLDPE – Naphtha
631
705
HDPE – Naphtha
630
689
PP – Naphtha
582
583
Past 5-year average price: US$713/t
600
300
2009
2011
2013
2015
2017F
2019F
2021F
2023F
Average spreads of key products will be continue to be resilient
Source: Nexant
9
Well-Positioned to Benefit from Attractive Indonesian
Macroeconomic Growth and Consumption Trends
GDP Growth CAGR (2017 – 2020F)
Polyolefins Consumption per Capita(1)(2)(3)
10%
6,8%
6,2% 6,0%
5,6%
4,8%
Germany
1,6% 1,3%
UK
2,0%
US
2,5%
Singapore
Thailand
Malysia
Indonesia
China
Philippines
Vietnam
3,1%
Projected CAGR 2017-2023F
7,8%
India
2
Foreign Direct Investment in Indonesia (2012 – 2016)
Bubble size indicates
demand in 2016, million tons
8%
India 9
6%
4%
Brazil
4
China
Indonesia 3
4 8
FSU
SEA
46
2
CE/WE
28
2%
Japan
5
19
US
24
0%
0
10
20
30
40
50
60
70
Consumption per capita (2016) kilogram per capita
(US$bn)
29,3
28,6
28,5
Domestic trends
29,0
Rising Population
Quality of Life
Product Substitution
Consumer Spending
Urbanization
Manufacturing
24,5
2012
2013
2014
2015
2016
(1) SEA excludes Indonesia
(2) Polyolefins include HDPE, LLDPE, LDPE and PP
(3) FSU means Former Soviet Union, CE means Central Europe, WE means Western Europe
Source: Nexant, IMF, BKPM
10
2
Strong Demand Growth for Petrochemical Products in
Indonesia
End Markets
Total Demand Growth (1)
(2017F – 2023F CAGR)
Plastic films
Containers
Bottles
Plastic bags
PE
Polypropylene
Packaging
Films and sheets
Fibers and filaments
Toys
Automotive parts
PP
Styrene Monomer
Drinks cups
Food containers
Car interiors
Helmet padding
SM
Butadiene
Vehicle tires
Synthetic rubber
Gloves and footwear
Polyethylene
BD
4,4%
3,4%
4,7%
3,6%
10,5%
1,6%
17,7%
2,4%
Indonesia
Global
Petrochemical products are fundamental to the production of a wide variety of consumer and
industrial products, such as packaging, containers, automotive and construction materials
(1)
By volume
Source: Nexant
11
2 Petrochemical Market in Indonesia will Continue to See an
Increasing Gap Between Supply and Demand
Ethylene
Propylene
2,357(1)
(KT/A)
Polyethylene
(KT/A)
(KT/A)
1,900(1)
1.384
1.078
2016
(748)
2020
(KT/A)
765
2016
1.231
179
2020
2023
1.231
(484)
(394)
2016
2020
Butadiene
Styrene Monomer
(KT/A)
(KT/A)
845
137
100
165
178
137
(1.049)
(1.282)
2020
2023
(593)
2023
Capacity
365
347
255
64
2016
366
341
185
36
(748)
1.824
1.625
833
202
2016
1.317
899
2.127
1.894
845
267
(758)
2023
Polypropylene
1.513
1.078
876
811
(457)(1)
(524)
1.078
900
890
860
1.658
1.638
156
(28)
(41)
2020
2023
Consumption
111
2016
2020
18
2023
Gap
Indonesia is expected to remain in deficit and dependent on imports
(1)
Includes unsanctioned capacity of 1MT
Source: Nexant
12
CAP is the Indonesian Market Leader
1
Largest Petrochemical Company in Indonesia(1)
Olefin Top 10 South East Asia Producers(3)
('000 tons per year)
Styrene Monomer
Pertamina
Sumitomo
Chandra Asri
PCG
IRPC
5.000
4.000
3.000
2.000
1.000
0
Total Supply: 0.3M tons
HD
LL
LD
PP
Chevron Phillips
JG Summit
6
PCG
CAP
100%
Import
53%
Total Supply: 1.6M tons
Shell/QPI
('000 tons per year)
IRPC
CAP
29%
Polyolefin Top 10 South East Asia Producers(3)
Chandra Asri
Polypropylene
Total Supply: 1.4M tons
Propylene
Propylene Capacity Addition
TPC
Total Supply: 2.6M tons
Ethylene
Ethylene Capacity Addition
Lotte Chemical
Titan
Import
45%
SCG
7
Lotte Chemical
Titan
Import
24%
Polytama
15%
Pertamina
3%
CAP
24%
PTTGC
LCT(2)
31%
PTTGC
CAP
52%
5.000
4.000
3.000
2.000
1.000
0
ExxonMobil
Pertamina
24%
Polyethylene
SCG
Olefin
ExxonMobil
3
Polyolefins Capacity Addition
CAP is a market leader in Indonesia across all of its products, and a leading player in the region
(1)
By production excluding fertilizer producers
(2)
Refers to Lotte Chemical Titan
(3)
Chandra Asri capacity is inclusive of SCG’s equity in Chandra Asri
Source: Nexant
13
3
CAP is Indonesia’s Largest Petrochemical Producer
Capacities of Petrochemical Producers in Indonesia (March 2017)
Capacity
Polytama
('000 tons per year)
Ethylene
860
Propylene
470
LLDPE
200
200
HDPE
136
250
Polypropylene
480
Others
Total
860
608
1,078
400
386
45
240
765
Ethylene Dichloride
644
370
1,014
Vinyl Chloride Monomer
734
130
864
Polyvinyl Chloride
507
95
202
804
Ethylene Oxide
240
240
Ethylene Glycol
220
220
Acrylic Acid
140
140
Butanol
20
20
Ethylhexanol
140
140
Py-Gas
400
400
Crude C4
315
315
Butadiene
100
100
Benzene
Para-Xylene
Styrene
Total
125
400
298
540
525
838
340
3,301
340
450
1,076
240
1,885
595
940
962
9,449
CAP offers the most diverse product range and is a dominant producer with c. 35% market
share of Indonesia’s olefins and polymers production capacities
Source: Nexant
14
4
Highly Integrated Production Process with Operational
Flexibility
Naphtha
Cracker
Cogen
51.56MW GTG
& 31.25MW STG
Fuel Gas
Ethylene
HDPE & LLDPE
Train 1
HDPE Train 2
Steam & Electricity
SM Plant 1
2 emergency
generators
Naphtha cracker, polyethylene and butadiene plants
source approximately half of the power from PLN and
the remaining half from the GTG, with the STG being used
as backup
Polypropylene, styrene monomer and butadiene plant
source power primarily from PLN. Two emergency
generators provides part of the power required for the
styrene monomer plants
One of our polyethylene plants is a swing plant that
allows production to be switched between LLDPE and
HDPE based on market demand
Integrated production system allows improvement of
feedstock yields and lower unit cost
Specialised software considers variables such as
product prices, freight, product yield of naphtha and
naphtha prices to determine the optimum ratio of
naphtha grades required
Modular set-up allows units to operate independently,
thus minimizing production disruptions
SM Plant 2
PP Train 1
Propylene
PP Train 2
PP Train 3
Pyrolysis
Gasoline
Mixed C4
BD Plant
Intermediate product
Process plant in Cilegon
Process plant in Serang
Integration allows us to take advantage of operational savings and synergies, and provides
flexibility to respond to changes of key products
15
5 Strategically Located to Supply Key Customers
CAP’s Integrated Petrochemical Complexes
Sulfindo Adi.
EDC, VCM
Santa Fe
Rhone Poulenc SBL
Sulfindo Adiusaha
NAOH, CL2
Sulfindo Adi. PVC
Showa Esterindo
PuloampelSerang
Merak
Integrated Complex
Main Plant Capacity (KT/A)
Styrene Monomer
Redeco
Polychem
Plant
Cont Carbon CB
Trans Bakrie Capacity 340 KT/A
Sintetikajaya
Risjad Brasali
Indochlor
EPS, SAN
Multisidia
Golden Key ABS
Buana Sulfindo
Statomer PVC
− Ethylene: 860
N
Prointail
Unggul Indah AB
PIPI PS and SBL
Mitsubishi Kasei
− Propylene: 470
− Py-Gas: 400
− Mixed C4: 315
− Polyethylene: 336
TITAN PE
− Polypropylene: 480
Butadiene Plant: 100 KT/A
On-Site Power
Amoco Mitsui
Cabot
UAP
Dow Chemical
Siemens KS
Air Liquide
Indonesia
Hoechst
ARCO PPG
Polyprima PTA
Polypet PET
Asahimas
Lautan Otsuka
Dongjin
Cilegon
Cilegon
NSI
Sriwie
Jakarta
Anyer
Integrated Complex
Jetty
Toll Road
CAP Pipeline
Road
Customers with pipeline access
Location proximity to key customers and reliability of supply leading to premium pricing, with
integration of facilities creating high barriers to entry
16
5
Diversified Client Base of Industry Leaders
Sales & Marketing Strategy
Top 10 Customers (2016)
% of
Revenue
Customer
Since
Customer 1
Polyethylene,
polypropylene
7.4%
1995
Indonesia
Customer 2
Ethylene, propylene
and styrene monomer
5.1%
2002
Japan
Customer 3
Styrene monomer and
butadiene
5.1%
2004
Indonesia
Customer 4
Polyethylene,
polypropylene
4.6%
1995
Indonesia
Customer 5
Customer 6
Ethylene
Ethylene
4.5%
4.1%
1995
2007
Indonesia
Indonesia
Strong marketing and distribution platform with nation-wide network
Customer 7
Butadiene, raffinate,
styrene monomer, C4
3.9%
2002
Singapore
–
Short delivery times result in premium pricing over benchmarks
–
Onground technical support
Customer 8
Customer 9
Customer 10
Pygas
Propylene
Ethylene
3.7%
2.8%
2.5%
2011
2011
2006
Thailand
Indonesia
Indonesia
Long term relationships with key customers
Connected to production facilities via CAP’s pipeline (ethylene and
propylene customers)
Network of 300+ customers, with diversified clientele
Customer
–
Top 10 customers account for only 43.6% of revenues in 2016
–
Majority of top 10 customers have been with CAP for >10 years
Trademarked brand names
–
“Asrene” for polyethylene products, “Trilene” for polypropylene
products, “Grene” for environmental friendly PE resin products
Products
Top 10 Customers % of Revenue
Location
43.6%
Sales Breakdown (2014 – 2016)
(US$m)
Domestic
514
41%
171
51%
610
1.303
2%
2014
49%
2015
4%
98%
96%
2016
419
256
289
35%
26%
31%
2014
2015
Polyolefin
2016
219
81%
65%
58%
Olefins & by-products(1)
(1)
885
2%
42%
98%
59%
869
Export
2014
74%
2015
82%
139
2016
2.455
1.374
1.923
23%
17%
26%
77%
83%
74%
2014
2015
2016
80%
69%
Styrene Monomer & byproducts
Includes ethylene, propylene, and by-products such as pygas and mixed C4
- Propylene: Majority used as feedstock for polypropylene production internally
- Mixed C4: Majority used as feedstock for butadiene production internally
- Pygas: Primarily sold to SCG
78
19%
18%
20%
2014
2015
2016
Butadiene & by-products
Total
17
6
Stable and Flexible Feedstock Supply
Feedstock Procurement Overview
Main Raw Materials (2016)
Long-standing stable supplier relationships
No material feedstock supply disruption historically
Flexibility in feedstock purchasing (spot vs. contract)
− Avoids single supplier dependence
− 76% of naphtha under contract with major oil trading companies
in 2016
Procurement synergies with SCG
Substantial naphtha storage capacity to support 27 days of
operations
Naphtha Supply (2016)
30%
70%
2014
Naphtha/
Condensate
100%
Benzene
100%
Propylene
40%
60%
Ethylene
100%
C4
100%
Externally Sourced
Internally Sourced
Suppliers of Naphtha (2016)
24%
30%
76%
70%
2015
Contract Purchase
2016
Spot Purchase
Supplier
US$m
%
Vitol Asia Pte Ltd
304.2
35.6%
Marubeni Petroleum C Ltd
237.5
27.8%
SCG Chemicals Co. Ltd
81.8
9.6%
Chevron U.S.A. Inc
78.4
9.2%
Shell International Eastern Trading
69.4
8.1%
Shell MDS (Malaysia) Sendirian
Konsorsium PT. Titis Sampurna
PT Surya Mandala SaKTi
PT Sadikun Chemical Indonesia
Others
Total
26.2
22.0
3.2
0.5
31.6
854.9
3.1%
2.6%
0.4%
0.1%
3.7%
100.0%
Customer-centric approach has resulted in long-standing relationships
18
7
Strong Commitment from Shareholders
Shareholder Structure
Barito Pacific Group
Prajogo
Pangestu
46.26%
(1)
14.82%
Public
(2)
Barito Pacific
Indonesia based conglomerate with business interests in property,
timber, plantation, power generation and petrochemicals
30.57%
Key benefits of partnership
Barito Pacific is committed to the growth and development of CAP
− Available land for expansion
− Financial commitment (e.g. full subscription to 2013 rights offering)
Siam Cement Group
Key benefits of partnership
Thailand’s largest industrial conglomerate and Asia’s leading
chemicals producer
Invested 30% in CAP in 2011
Second largest olefins and polyolefins producer in South East Asia
8.35%
Production know-how and sharing of best operational practices
Raw material procurement savings
Sales and marketing collaboration
Access to Thai financial institutions
Accelerate CAP’s expansion plans
Strong backing from long term marquee strategic regional investors committed to the
development of the business
(1)
(2)
Including 4.75% shares of Marigold Resources Pte. Ltd.
Owns 69.23% of PT Barito Pacific Tbk
19
8
Strong Management Team with Substantial Industry
Experience
Board of Commissioners
DJOKO SUYANTO
TAN EK KIA
HO HON CHEONG
President Commissioner
Independent
Commissioner
VP Commissioner
Independent
Commissioner
Commissioner,
Independent
Commissioner
2 years in Industry
2 year with CAP
44 years in Industry
6 years with CAP
2 years in Industry
2 years with CAP
AGUS SALIM
PANGESTU
LOEKI SUNDJAJA
PUTERA
CHAOVALIT
EKABUT(1)
CHOLANAT
YANARANOP(1)
Commissioner
Commissioner
Commissioner
Commissioner
11 years in Industry
11 years with CAP
15 years in Industry
15 years with CAP
11 years in Industry
5 years with CAP
30 years in Industry
5 years with CAP
Board of Directors
ERWIN CIPUTRA
President Director
KULACHET
DHARACHANDRA(1)
VP Director of Operations
BARITONO
PRAJOGO
PANGESTU
LIM CHONG THIAN
SURYANDI
Director of Finance
Director of Human
Resource and Corp.
Administration,
Independent Director
VP Director of Polymer
Commercial
13 years in Industry
13 years with CAP
(1)
Representative of SCG
23 years in Industry
1 year with CAP
12 years in Industry
12 years with CAP
37 years in Industry
12 years with CAP
27 years in Industry
27 years with CAP
PIBOON
FRANSISKUS RULY
SIRINANTANAKUL(1)
ARYAWAN
Director of
Manufacturing
24 years in Industry
1 year with CAP
Director of Monomer
Commercial
15 years in Industry
15 years with CAP
20
Strong Track Record of Delivering Operational
Excellence and Performance
Naphtha Cracker Utilization(1)
92%
100%
97%
98%
97%
98%
TAM/ Expansion tie-ins: Q4/2015
Ramp-up of new capacity: Q1/2016
97%
82%
79%
74%
92%
98%
103% 100%
97%
76%
66%
65%
Unscheduled repair
91%
86%
93%
Q2-17
Q1-17
Q2-16
YTD June
2017
YTD June
2016
Q2-17
YTD
June
2017
2Q2017
4Q2016
3Q2016
2Q2016
1Q2017
116%
116%
100%
88%
80%
Q1-17
YTD
June
2016
1Q2016
89%
74%
Q2-16 Q1-17 Q2-17
103%
Q2-17
91%
96%
117%
107%
Q1-17
92%
97%
100%
Butadiene Plant Utilization
Q2-16
99%
100%
4Q2015
3Q2015
Styrene Monomer Plant Utilization
YTD
June
2016
YTD
June
2017
Polypropylene Plant Utilization
YTD
June
2016
YTD
June
2017
Polyethylene Plant Utilization
2Q2015
YTD
June
2017
1Q2015
YTD
June
2016
4Q2014
Q2-17
3Q2014
Q1-17
1Q2014
Q2-16
2Q2014
11%
Q2-16
8
Plant utilization has remained high due to our operational process optimization initiatives
(1)
In September to December 2015, we conducted a scheduled TAM and expansion tie-in-works in conjunction with our cracker expansion project, which resulted in the
shutdown of our cracker facility for 85 days and limited our production capacity for 2015. 2016 utilisation was reduced due to ramp-up in 1Q 2016
21
8
Strong Success of Both Vertical and Horizontal
Expansion
(KT/A)
Cracker
expansion &
Acquisiton
of SMI
Merger with
TPI &
Increase PE
Capacity
BD Plant
operation
Successfully acquired and integrated SMI and TPI
Expanded naphtha cracker in 2015 to achieve
economies of scale and take advantage of significant
ethylene shortage in Indonesia
Cracker
expansion
3.301
3.301
− Mechanical completion on 9 Dec 2015, on time and
within budget (c. US$380m)
625
2.576
496
2.080
1.510
570
2.676
100
BD: ∆100KT
C3: ∆150KT
− Total actual project cost in line with budget (c.
US$380m)
Pygas:∆120KT
C4:∆95KT
PE: ∆16KT
PP:
C2: ∆260KT
∆480KT(1)
C2: ∆80KT
− Achieved high utilization rates
C3: ∆50KT
Pygas:∆60KT
C4:∆40KT
SM: ∆340KT
2005
2007
2011
2013
2016
Currently undertaking next stage of expansions and
growth
2016
Expansion of production capacity and product range has enabled us to maintain our market
leading position
(1)
Represents addition to capacity due to merger with TPI that had installed propylene capacity of 480 KT/A at the time of merger
22
3.
Growth Plans
23
Strategic Growth Plan (Excluding Second Petrochemical
Complex)
(KT/A)
SSBR
operation, BD
expansion
PE
expansion, &
PP
Debotlenecking
3.968
3.301
3.458
157
SSBR: ∆120KT
BD: ∆37KT
2016
2018
Furnace
revamping,
MTBE and
Butene-1
4.201
4.201
233
510
C2: ∆40KT
PE: ∆400KT
C3: ∆20KT
PP: ∆110KT
MTBE: ∆130KT
2019
2020
B1: ∆43KT
2020
24
Increase Production Capacity
Butadiene Plant Expansion
New Polyethylene Plant
Increase BD capacity by 100 KT/A to 137
KT/A
New facility of total 400 KT/A to produce
LLDPE, HDPE and Metallocene LLDPE
Rationale:
Further vertical integration
− Add value to incremental C4 post 2015
cracker expansion
− Avoid opportunity loss of exporting
excess C4
− Enjoy BD domestic premium and fulfill
SRI’s BD requirement
Increase cracker capacity by modifying heat
internals to increase ethylene capacity from
860 KT/A to 900 KT/A and propylene
capacity from 470 KT/A to 490 KT/A
Rationale:
Estimated cost: US$45m
− Further vertical integration;
Funding structure: 100% internal cash
− Protect and grow leading polymer
market position in Indonesia
Commenced revamp project in March 2017
Proposed start-up: 1Q2020
License: UNIPOL Polyethylene Process
from Univation Technologies, LLC
Funding structure: 100% internal cash
Estimated cost US$350m
Awarded EPC work to Toyo Engineering
Korea Limited (January 2017); EPC start in
January 2017
Funding structure: Debt and Equity
Awarded Toyo Engineering for EPC work
(Sept 17)
Proposed start-up: 4Q2019
Estimated cost: US$42m
Proposed start-up: 2Q2018
Furnace Revamp
25
Expand Product Offering by Moving Downstream
Synthetic Rubber Project (through SRI Joint Venture)
Part of downstream integration strategy and efforts to produce higher-value added products
Partnership with leading global player Michelin (ownership 55:45%)
Production capacity: 120 KT/A
Estimated total project cost: US$570m
Funding structure: US$120m internal cash and the remaining in debt, with debt fully funded by
Michelin
Construction began in November 2015
Proposed start-up: 1Q2018
Completion progress 93.5% per Sept-2017
Process System
Utility System
SRI Plant Site
Tank Farm
26
Additional Expansion and Product Offering Initiatives
PP Debottlenecking
Debottleneck PP plant to increase capacity
by 110 KT/A from 480 KT/A to 590 KT/A
Rationale:
MTBE and Butene – 1 Plant
Production of 130 KT/A and 43 KT/A of
MTBE and Butene-1, respectively
Rationale:
− Demand and supply gap for PP expected
to widen in Indonesia
− Secure supply of MTBE and Butene-1
which are used in the production of
Polyethylene
− Opportunity to increase PP sales
Estimated cost: US$40m
Funding structure: 100% internal cash
Proposed start-up: 3Q2019
Second Petrochemical Complex
Expected to conduct feasibility study for the
construction and operation of second
integrated petrochemical complex
Complex expected to comprise:
− 1,000 KT/A ethylene cracker
− Excess demand for MTBE in Indonesia
Estimated cost: US$87m
Funding structure: 100% internal cash
Proposed start-up: 3Q2020
− Various downstream derivative products
Project expected to cost US$4 – 5bn
Set up new company (PT Chandra Asri
Perkasa) to undertake new project
Shareholding structure yet to be finalized
and CAP is in discussion with various third
parties
There is land available adjacent to main
petrochemical complex which would be
available for future acquisition as necessary
27
4.
Financial Highlights & Projections
Prudent Financial Policies
Foreign Exchange
Maintain natural economic hedge as underlying sales and majority of costs and borrowings are
denominated in US$
Treasury risk management on Rupiah currency risks:
− Sales are hedged via pricing to customers and forward swaps with reputable banks
− Minimum Rupiah cash holdings of up to 10 – 15% of idle cash to meet operational needs
Maximum total debt to capitalization of 40% on sustainable basis
Maximum Net Debt / Adjusted EBITDA of 3.0x
Minimum Interest Service cover of 1.75x
Minimum Adjusted EBITDA / Interest cover of 3.0x
Liquidity
Seek to maintain minimum cash of US$100m at all times
Return on Capital
Seek minimum 15% IRR for new investments
Payout in the amount of c. 40% of consolidated net profit subject to:
Leverage
Coverage
Dividend Policy
− Liquidity, leverage and reserves
− Financial performance / sustainability
− Projected operational and capital expenditure
29
Credit Ratings
Ba3 / Stable
B+ / Developing;
BB- (SACP)
idA+
Outstanding Bonds:
CAP I 2016 Series A: IDR 361,4bn, coupon 10.8% pa., rating idA+, due date 22 Dec 2019
CAP I 2016 Series B: IDR 138,6bn, coupon 11.3% pa., rating idA+, due date 22 Dec 2021
30
Resilient Revenue Driven by Increase in Sales Volume
Revenue by Product Segments
Sales Volume
(US$m)
(KT)
1.116
1.195
936
5
147
101
882
633
523
4
41
71
239
4
88
107
563
239
217
1
60
110
168
196
175
Q2-16
Q1-17
Q2-17
5
64
131
217
456
432
250
370
YTD Jun 2016 YTD Jun 2017
Note:
138
176
131
529
555
560
59
68
116
68
82
114
77
5
70
14
125
70
93
111
70
0
60
45
111
76
6
63
31
110
Q2-16
Q1-17
Ethylene
Mixed C4
Styrene Monomer
Q2-17
Propylene
Polyethylene
Butadiene
225
225
144
8
116
50
161
147
5
130
59
236
YTD Jun 2016 YTD Jun 2017
Py-gas
Polypropylene
TAM in 2015 and ramp-up in 2016.
31
Financial Highlights
Strong financials further enhanced by economies of scale (in US$m)
Gross Profit
EBITDA
292
295
218
156
224
176
Q2-16
Q1-17
Q2-17
172
154
116
123
YTD Jun 2016 YTD Jun 2017
Q2-16
Net Profit
Net Profit
18%
Margin
Q1-17
Q2-17
YTD Jun 2016 YTD Jun 2017
Cash flow from Operations, Capex
17%
12%
15%
CFO
15%
Capex
198
180
174
132
96
125
108
88
66
4
Q2-16
Q1-17
Q2-17
65
55
YTD Jun 2016 YTD Jun 2017
Q2-16
47
37
18
Q1-17
Q2-17
YTD Jun 2016 YTD Jun 2017
32
Average Realized Prices
Olefins
Polyolefins
Others
2.183
1.358
1.201
1.030
1.028
926
983
1.057
975
972
736
710
376
404
406
442
Q1
2016
Q2
2016
Q3
2016
Q4
2016
729
644
551
2015
Ethylene
Naphtha
1.270 1.318
1.226 1.213 1.232 1.200
1.230 1.225 1.201 1.265 1.200
1.249
1.018
963
805
1.270
1.095
957
746
551
466
Q2
2017
Propylene
2015
507
406
442
Q1
Q2
Q3
20162 20162 2016
Q4
2016
376
Q1
2017
1.183
980
941
721
507
1.062 1.033 1.074
1.008
1.284
404
Polyethylene
Q1
2017
551
466
Q2
2017
Polypropylene
2015
376
404
406
442
Q1
2016
Q2
2016
Q3
2016
Q4
2016
SM
Butadiene
507
Q1
2017
466
Q2
2017
Naphtha
Naphtha
33
Gross Product Margins
Olefins
Polyolefins
27,2%
28,7%
32,2%
32,0%
29,9%
28,2%
15,8%
2,0%
2014
7,0%
(0,9%)
2015
2016
1H2016
1H2017
Styrene Monomer and by-products
2014
2015
2016
1H2016
1H2017
Butadiene and by-products
16,9%
8,7%
7,1%
11,1%
6,1%
8,1%
5,0%
2,9%
1,7%
(5,1%)
2014
2015
2016
1H2016
1H2017
2014
2015
2016
1H2016
1H2017
Improving product margins due to higher utilization rates
34
Strong Balance Sheet Supported by Recent
Financial Profile Strengthening
Cash Balance
Debt and Net Debt
(US$m)
(US$m)
463
278
384
212
373
307
156
161
106
Q2-16
Q1-17
Q2-17
Q2-16
Adjusted EBITDA / Interest(a)
Q1-17
Q2-17
Leverage Ratios(b)
(x)
16,0x
16,0x
16,3x
3,6x
3,2x
0,8x
6,9x
Min
3.0x
4,2x
2014
2015
2016
1H2016
1H2017
2,1x
36%
2014
1,6x
0,6x
2,6x
36%
0,2x
27%
2015
2016
Debt to capital
1,1x
32%
1H2016
0,3x
24%
Max
50%
1H2017
Debt to Adjusted EBITDA
Net debt to Adjusted EBITDA
(a) Adjusted EBITDA / Interest calculated as Adjusted EBITDA divided by finance costs. For 1H2017 calculated as LTM Adjusted EBITDA divided by LTM finance costs.
(b) Debt to capital calculated as total debt divided by (total debt + equity). Debt to Adjusted EBITDA calculated as total debt divided by Adjusted EBITDA. Net Debt to Adjusted
EBITDA calculated as Net Debt divided by Adjusted EBITDA. Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA for 1H2017 calculated as total debt divided by
35
LTM Adjusted EBITDA and Net Debt divided by LTM Adjusted EBITDA respectively.
Capital Expenditure Plan to Pursue Value-Accretive
Growth
Capex Plans Breakdown by Year 2017 – 2019 (US$m)
Sources of Funding
Internal generated cash flows
Proceeds from Rights Issue
Debt drawdown
534
398
303
154
253
81
9
62
12
8
39
45
24
16
30
42
10
11
98
137
19
23
2017F
2018F
2019F
63
BD expansion
PP expansion
Others/TAM
New cracker initial spend
PE expansion
Furnace Revamp
MTBE & Butene-1
Estimated US$1.2b over next 3 years, mainly for Expansion and Debottlenecking
36
5.
Petrochemical Industry Outlook
Ethylene World Supply Growth and Capacity
Ethylene World Supply Growth
(million tons)
(Operating rates)
Actual
250
Forecast
100%
200
90%
150
100
80%
50
70%
0
2009
2011
2013
2015
2017
2019
Ethylene Consumption
Total Capacity (with Unsactioned Capacity)
Operating Rates (with Unsactioned Capacity)
Operating Rates (with No Unsactioned Capacity)
Ethylene Production Capacity: 218MT in 2023
CTO/MTO and
Others
Shale Gas
5%
6%
-
Global ethylene demand
forecasted to grow at c.3.2%
CAGR between 2017 – 2023
As many as 20-26 new ethylene
plants expected to be build
7 – 8 years required from
planning to startup
2021
2023
Total Capacity (with No Unsactioned Capacity)
New Capacity by Region: 25MT (2017 – 2023)
SEA
9%
Asia Pacific (exc.
SEA and China)
1%
Americas
34%
Middle East/Africa
17%
Naphtha
NGLs Cracking
44%
Naphtha/Liquids
Cracking
45%
Europe
19%
China
20%
38
The Petrochemical Industry is in a Long Term Cyclical
Phase
Ethylene Spreads Over Naphtha
Gap over naphtha (US$/t)
% Utilisation
700
100%
600
Average 2013-2016: US$567
Average 2017-2019: US$568
90%
500
Average 2020-2023: US$424
400
80%
Average 2009-2012: US$306
300
200
70%
100
0
60%
2009
2010
2011
2012
2013
2014
2015
Ethylene Delta Over Net Raw Material Cost
2016
2017F
2018F
2019F
2020F
2021F
2022F
2023F
Global Operating Rates with Unsanctioned Capacity
Global Operating Rates with no Unsanctioned Capacity
Petrochemical industry profitability to continue on path of sustainable recovery post 2012 as a
result of improving demand and lower capacity addition
Note: Forecast price is based on Brent Crude at US$55 (2017), US$65 (2018), US$70 (2019 – 2025) per barrel (constant 2016 dollars)
Source: Nexant
39
Strong Demand Growth for Petrochemicals in Indonesia
Ethylene (CAGR ’17 – ’23)
Propylene (CAGR ’17 – ’23)
3,2%
Butadiene (CAGR ’17 – ’23)
5,4%
3,1%
17,7%
2,4%
3,4%
1,7%
5,5%
2,4%
Global
SEA
Indonesia
Polyethylene (CAGR ’17 – ’23)
3,4%
3,9%
Global
SEA
Indonesia
Polypropylene (CAGR ’17 – ’23)
4,4%
4,2%
Global
SEA
Indonesia
Styrene Monomer (CAGR ’17 – ’23)
4,7%
10,5%
3,6%
1,6%
Global
SEA
Indonesia
Global
SEA
Indonesia
Global
2,3%
SEA
Indonesia
Petrochemical demand in Indonesia expected to outpace other regions
Source: Nexant
40
Q&A
1. Company Overview
2. Key Credit Highlights
3. Growth Plans
4. Financial Highlights & Projections
5. Petrochemical Industry Outlook
1.
Company Overview
Chandra Asri Petrochemical at a Glance
Market leadership in highly attractive Indonesia and SE Asia petrochemical market
̶
c. 35% market share of Indonesia’s olefins and polymers production capacity
Long-standing relationships with diverse customer base:
̶
No single customer accounts for more than 7% of consolidated revenue
̶
In 2016, 74% of products by revenue were sold to domestic market
Integration from upstream cracker to downstream polyolefin products
̶
Strategically located near key customers
Low production cost base and operating efficiencies
̶
Benefit from scale of feedstock sourcing and stable supplier relationships
̶
Naphtha cracker utilization rate of 98% in 1H2017
Transformed in 2016 following the 4Q2015 Naphtha Cracker expansion, resulting in
Adjusted EBITDA increase, reinforced balance sheet, and a more diversified product mix
̶
2015 – 2016 Adjusted EBITDA growth of +229%
̶
Reduced debt and Debt / Adjusted EBITDA at 0.8x
Captive distribution network provides significant cost efficiencies
̶
Key customers integrated with CAP production facilities via CAP’s pipelines
̶
Provides significant cost efficiencies to key customers
New projects fueling strategic growth
̶
Projects include partnership with Michelin to expand downstream products, new
polyethylene plants, debottlenecking, and other efficiency improvements
̶
Evaluation of a second petrochemical complex underway
Strong and experienced management team
CAP’s main integrated manufacturing complex
2015 Revenue
US$
1,378m
2016 Revenue
US$
1,930m
Support from Barito Pacific Group and Siam Cement Group
Vital National Object status
We are the largest integrated petrochemical producer in Indonesia, and own the only naphtha
cracker, styrene monomer and butadiene plants in Indonesia
3
25 Year Track Record of Successful Growth
CAP
510m
2015
155m
(US$)
2.1bn
134m
Adjusted
EBITDA
Appointed Toyo Eng. Corp for
construction of SBR Plant
2011
Refinanced US$150m loan
Merger of CA and TPI
with lower cost US$94.98m
effective from 1 Jan 2011
7-year term loan
Completed debottlenecking in Apr 2011
to raise polypropylene
capacity to 480 KT/A
1.9bn
1.9bn
Total
assets
2014
2015
2010
2007
Added extra furnace,
increasing ethylene
Product
production by 80
expansion
KT/A
through
Acquisition of 100%
selling of
shares of SMI
Mixed C4
2004
1995
CA
Commercial
production
begins at CAP
with initial
cracker
capacity of 520
KT/A
2004
1992
TPI
1992
1995
1993
1993
Started
commercial
production of
polypropylene
comprising
annual capacity
of 160 KT/A
Increased
capacity of
polypropylene
plant to 240
KT/A
Increased
capacity of
polypropylene
plant to 360
KT/A
SCG acquired 30% of CAP
from Barito Pacific and
Apleton Investments
Limited
2015
2013
2011
2009
2013
Formed JV with
Michelin (SRI) in June
2013 for construction of
SBR Plant
Commenced operation
of Butadiene plant in
Sept 2013
Secured funding for
cracker expansion:
2009
1995
Issued
inaugural
5-year
US$230m
Bond
2010
2007
2017
2016
2016
Completed cracker expansion
project in Dec 2015 to raise
capacity to 860 KT/A
Increased
capacity of
polypropylene
plant to 480
KT/A
2016
Public offering of CAP
I Bonds 2016
Received upgraded
corporate rating from
Moody’s from B2 to
B1 and revised rating
outlook from S&P
from Stable to
Positive B+. Received
idA+ rating from
Pefindo
2017
Received
upgraded
corporate rating
from Moody’s
from B1 to Ba3
US$378m rights
issue in Sep 2017
− US$128m rights
issue in November
2013
− US$265m TermLoan facility
Track record of achieving operational and structured growth
4
Vision and Business Strategy
Vision to be Indonesia’s Leading and Preferred Petrochemical Company
1
Increase capacity and build on leading market position
2
Expand product offerings and further optimize integration along the
petrochemical value chain
3
Develop feedstock advantage to improve cost competitiveness
4
Develop and nurture human capital
5
Continue to strengthen and leverage the Company’s advantage to maintain
premium relationship with stakeholders
6
Maintain and further improve best-in-class operating standards, cost efficiency,
and safety, health and environment
5
Integrated Production of Diverse Products
Capacity (KT/A)
Capacity
(KT/A)
Polyethylene (336)
Naphtha
Ethylene (860)
Naphtha
consumption of
2,450 KT/A at full
capacity
Use of Goods (examples)
Styrene
Monomer (340)
Merchant
market (430)
Polypropylene (480)
Propylene (470)
Pyrolysis
Gasoline (400)
Mixed C4 (315)
Support
facilities
Co-generation
plants
Butadiene (100)
Utilities &
facilities
Water
facilities
Jetty
facilities
(
CAP’s products encompass a wide range across the consumer products value-chain, and its
leading position and strategic location enhances its competitiveness
6
2.
Key Credit Highlights
Key Credit Highlights
Attractive industry outlook
1
Well-positioned to benefit from attractive Indonesian growth
fundamentals
2
3
4
High degree of operational integration
5
Diversified customer base and strategically located to supply
key customers
6
7
8
Indonesia’s leading petrochemical producer with a diverse
product portfolio
Diverse and secured sources of feedstock and raw materials
Strong shareholder support
Highly experienced management team with proven track record of
managing and expanding operations
8
1
Attractive Industry Fundamentals Providing Tailwinds
for Petrochemicals Demand Growth in SEA
Polyolefins Demand in SEA Expected to Outpace Global
Market Growth…
Polyethylene consumption growth (2017 – 2023E CAGR)
(US$/t)
850
800
4,4%
3,9%
3,4%
Polyolefin Spreads Expected to Remain Resilient
750
700
Global
SEA
Indonesia
650
600
Polypropylene consumption growth (2017 – 2023E CAGR)
500
4,7%
4,2%
3,6%
550
450
400
Global
SEA
350
Indonesia
2009
…while Asian Naphtha Prices Remain Below Historical
Average
(US$/t, real prices)
2011
900
2015 2017F 2019F 2021F 2023F
LDPE - Naphtha
HDPE - Naphtha
(US$/t)
1200
2013
LLDPE - Naphtha
PP - Naphtha
Last 5 Years Average
Next 5 Years Average
LDPE – Naphtha
662
754
LLDPE – Naphtha
631
705
HDPE – Naphtha
630
689
PP – Naphtha
582
583
Past 5-year average price: US$713/t
600
300
2009
2011
2013
2015
2017F
2019F
2021F
2023F
Average spreads of key products will be continue to be resilient
Source: Nexant
9
Well-Positioned to Benefit from Attractive Indonesian
Macroeconomic Growth and Consumption Trends
GDP Growth CAGR (2017 – 2020F)
Polyolefins Consumption per Capita(1)(2)(3)
10%
6,8%
6,2% 6,0%
5,6%
4,8%
Germany
1,6% 1,3%
UK
2,0%
US
2,5%
Singapore
Thailand
Malysia
Indonesia
China
Philippines
Vietnam
3,1%
Projected CAGR 2017-2023F
7,8%
India
2
Foreign Direct Investment in Indonesia (2012 – 2016)
Bubble size indicates
demand in 2016, million tons
8%
India 9
6%
4%
Brazil
4
China
Indonesia 3
4 8
FSU
SEA
46
2
CE/WE
28
2%
Japan
5
19
US
24
0%
0
10
20
30
40
50
60
70
Consumption per capita (2016) kilogram per capita
(US$bn)
29,3
28,6
28,5
Domestic trends
29,0
Rising Population
Quality of Life
Product Substitution
Consumer Spending
Urbanization
Manufacturing
24,5
2012
2013
2014
2015
2016
(1) SEA excludes Indonesia
(2) Polyolefins include HDPE, LLDPE, LDPE and PP
(3) FSU means Former Soviet Union, CE means Central Europe, WE means Western Europe
Source: Nexant, IMF, BKPM
10
2
Strong Demand Growth for Petrochemical Products in
Indonesia
End Markets
Total Demand Growth (1)
(2017F – 2023F CAGR)
Plastic films
Containers
Bottles
Plastic bags
PE
Polypropylene
Packaging
Films and sheets
Fibers and filaments
Toys
Automotive parts
PP
Styrene Monomer
Drinks cups
Food containers
Car interiors
Helmet padding
SM
Butadiene
Vehicle tires
Synthetic rubber
Gloves and footwear
Polyethylene
BD
4,4%
3,4%
4,7%
3,6%
10,5%
1,6%
17,7%
2,4%
Indonesia
Global
Petrochemical products are fundamental to the production of a wide variety of consumer and
industrial products, such as packaging, containers, automotive and construction materials
(1)
By volume
Source: Nexant
11
2 Petrochemical Market in Indonesia will Continue to See an
Increasing Gap Between Supply and Demand
Ethylene
Propylene
2,357(1)
(KT/A)
Polyethylene
(KT/A)
(KT/A)
1,900(1)
1.384
1.078
2016
(748)
2020
(KT/A)
765
2016
1.231
179
2020
2023
1.231
(484)
(394)
2016
2020
Butadiene
Styrene Monomer
(KT/A)
(KT/A)
845
137
100
165
178
137
(1.049)
(1.282)
2020
2023
(593)
2023
Capacity
365
347
255
64
2016
366
341
185
36
(748)
1.824
1.625
833
202
2016
1.317
899
2.127
1.894
845
267
(758)
2023
Polypropylene
1.513
1.078
876
811
(457)(1)
(524)
1.078
900
890
860
1.658
1.638
156
(28)
(41)
2020
2023
Consumption
111
2016
2020
18
2023
Gap
Indonesia is expected to remain in deficit and dependent on imports
(1)
Includes unsanctioned capacity of 1MT
Source: Nexant
12
CAP is the Indonesian Market Leader
1
Largest Petrochemical Company in Indonesia(1)
Olefin Top 10 South East Asia Producers(3)
('000 tons per year)
Styrene Monomer
Pertamina
Sumitomo
Chandra Asri
PCG
IRPC
5.000
4.000
3.000
2.000
1.000
0
Total Supply: 0.3M tons
HD
LL
LD
PP
Chevron Phillips
JG Summit
6
PCG
CAP
100%
Import
53%
Total Supply: 1.6M tons
Shell/QPI
('000 tons per year)
IRPC
CAP
29%
Polyolefin Top 10 South East Asia Producers(3)
Chandra Asri
Polypropylene
Total Supply: 1.4M tons
Propylene
Propylene Capacity Addition
TPC
Total Supply: 2.6M tons
Ethylene
Ethylene Capacity Addition
Lotte Chemical
Titan
Import
45%
SCG
7
Lotte Chemical
Titan
Import
24%
Polytama
15%
Pertamina
3%
CAP
24%
PTTGC
LCT(2)
31%
PTTGC
CAP
52%
5.000
4.000
3.000
2.000
1.000
0
ExxonMobil
Pertamina
24%
Polyethylene
SCG
Olefin
ExxonMobil
3
Polyolefins Capacity Addition
CAP is a market leader in Indonesia across all of its products, and a leading player in the region
(1)
By production excluding fertilizer producers
(2)
Refers to Lotte Chemical Titan
(3)
Chandra Asri capacity is inclusive of SCG’s equity in Chandra Asri
Source: Nexant
13
3
CAP is Indonesia’s Largest Petrochemical Producer
Capacities of Petrochemical Producers in Indonesia (March 2017)
Capacity
Polytama
('000 tons per year)
Ethylene
860
Propylene
470
LLDPE
200
200
HDPE
136
250
Polypropylene
480
Others
Total
860
608
1,078
400
386
45
240
765
Ethylene Dichloride
644
370
1,014
Vinyl Chloride Monomer
734
130
864
Polyvinyl Chloride
507
95
202
804
Ethylene Oxide
240
240
Ethylene Glycol
220
220
Acrylic Acid
140
140
Butanol
20
20
Ethylhexanol
140
140
Py-Gas
400
400
Crude C4
315
315
Butadiene
100
100
Benzene
Para-Xylene
Styrene
Total
125
400
298
540
525
838
340
3,301
340
450
1,076
240
1,885
595
940
962
9,449
CAP offers the most diverse product range and is a dominant producer with c. 35% market
share of Indonesia’s olefins and polymers production capacities
Source: Nexant
14
4
Highly Integrated Production Process with Operational
Flexibility
Naphtha
Cracker
Cogen
51.56MW GTG
& 31.25MW STG
Fuel Gas
Ethylene
HDPE & LLDPE
Train 1
HDPE Train 2
Steam & Electricity
SM Plant 1
2 emergency
generators
Naphtha cracker, polyethylene and butadiene plants
source approximately half of the power from PLN and
the remaining half from the GTG, with the STG being used
as backup
Polypropylene, styrene monomer and butadiene plant
source power primarily from PLN. Two emergency
generators provides part of the power required for the
styrene monomer plants
One of our polyethylene plants is a swing plant that
allows production to be switched between LLDPE and
HDPE based on market demand
Integrated production system allows improvement of
feedstock yields and lower unit cost
Specialised software considers variables such as
product prices, freight, product yield of naphtha and
naphtha prices to determine the optimum ratio of
naphtha grades required
Modular set-up allows units to operate independently,
thus minimizing production disruptions
SM Plant 2
PP Train 1
Propylene
PP Train 2
PP Train 3
Pyrolysis
Gasoline
Mixed C4
BD Plant
Intermediate product
Process plant in Cilegon
Process plant in Serang
Integration allows us to take advantage of operational savings and synergies, and provides
flexibility to respond to changes of key products
15
5 Strategically Located to Supply Key Customers
CAP’s Integrated Petrochemical Complexes
Sulfindo Adi.
EDC, VCM
Santa Fe
Rhone Poulenc SBL
Sulfindo Adiusaha
NAOH, CL2
Sulfindo Adi. PVC
Showa Esterindo
PuloampelSerang
Merak
Integrated Complex
Main Plant Capacity (KT/A)
Styrene Monomer
Redeco
Polychem
Plant
Cont Carbon CB
Trans Bakrie Capacity 340 KT/A
Sintetikajaya
Risjad Brasali
Indochlor
EPS, SAN
Multisidia
Golden Key ABS
Buana Sulfindo
Statomer PVC
− Ethylene: 860
N
Prointail
Unggul Indah AB
PIPI PS and SBL
Mitsubishi Kasei
− Propylene: 470
− Py-Gas: 400
− Mixed C4: 315
− Polyethylene: 336
TITAN PE
− Polypropylene: 480
Butadiene Plant: 100 KT/A
On-Site Power
Amoco Mitsui
Cabot
UAP
Dow Chemical
Siemens KS
Air Liquide
Indonesia
Hoechst
ARCO PPG
Polyprima PTA
Polypet PET
Asahimas
Lautan Otsuka
Dongjin
Cilegon
Cilegon
NSI
Sriwie
Jakarta
Anyer
Integrated Complex
Jetty
Toll Road
CAP Pipeline
Road
Customers with pipeline access
Location proximity to key customers and reliability of supply leading to premium pricing, with
integration of facilities creating high barriers to entry
16
5
Diversified Client Base of Industry Leaders
Sales & Marketing Strategy
Top 10 Customers (2016)
% of
Revenue
Customer
Since
Customer 1
Polyethylene,
polypropylene
7.4%
1995
Indonesia
Customer 2
Ethylene, propylene
and styrene monomer
5.1%
2002
Japan
Customer 3
Styrene monomer and
butadiene
5.1%
2004
Indonesia
Customer 4
Polyethylene,
polypropylene
4.6%
1995
Indonesia
Customer 5
Customer 6
Ethylene
Ethylene
4.5%
4.1%
1995
2007
Indonesia
Indonesia
Strong marketing and distribution platform with nation-wide network
Customer 7
Butadiene, raffinate,
styrene monomer, C4
3.9%
2002
Singapore
–
Short delivery times result in premium pricing over benchmarks
–
Onground technical support
Customer 8
Customer 9
Customer 10
Pygas
Propylene
Ethylene
3.7%
2.8%
2.5%
2011
2011
2006
Thailand
Indonesia
Indonesia
Long term relationships with key customers
Connected to production facilities via CAP’s pipeline (ethylene and
propylene customers)
Network of 300+ customers, with diversified clientele
Customer
–
Top 10 customers account for only 43.6% of revenues in 2016
–
Majority of top 10 customers have been with CAP for >10 years
Trademarked brand names
–
“Asrene” for polyethylene products, “Trilene” for polypropylene
products, “Grene” for environmental friendly PE resin products
Products
Top 10 Customers % of Revenue
Location
43.6%
Sales Breakdown (2014 – 2016)
(US$m)
Domestic
514
41%
171
51%
610
1.303
2%
2014
49%
2015
4%
98%
96%
2016
419
256
289
35%
26%
31%
2014
2015
Polyolefin
2016
219
81%
65%
58%
Olefins & by-products(1)
(1)
885
2%
42%
98%
59%
869
Export
2014
74%
2015
82%
139
2016
2.455
1.374
1.923
23%
17%
26%
77%
83%
74%
2014
2015
2016
80%
69%
Styrene Monomer & byproducts
Includes ethylene, propylene, and by-products such as pygas and mixed C4
- Propylene: Majority used as feedstock for polypropylene production internally
- Mixed C4: Majority used as feedstock for butadiene production internally
- Pygas: Primarily sold to SCG
78
19%
18%
20%
2014
2015
2016
Butadiene & by-products
Total
17
6
Stable and Flexible Feedstock Supply
Feedstock Procurement Overview
Main Raw Materials (2016)
Long-standing stable supplier relationships
No material feedstock supply disruption historically
Flexibility in feedstock purchasing (spot vs. contract)
− Avoids single supplier dependence
− 76% of naphtha under contract with major oil trading companies
in 2016
Procurement synergies with SCG
Substantial naphtha storage capacity to support 27 days of
operations
Naphtha Supply (2016)
30%
70%
2014
Naphtha/
Condensate
100%
Benzene
100%
Propylene
40%
60%
Ethylene
100%
C4
100%
Externally Sourced
Internally Sourced
Suppliers of Naphtha (2016)
24%
30%
76%
70%
2015
Contract Purchase
2016
Spot Purchase
Supplier
US$m
%
Vitol Asia Pte Ltd
304.2
35.6%
Marubeni Petroleum C Ltd
237.5
27.8%
SCG Chemicals Co. Ltd
81.8
9.6%
Chevron U.S.A. Inc
78.4
9.2%
Shell International Eastern Trading
69.4
8.1%
Shell MDS (Malaysia) Sendirian
Konsorsium PT. Titis Sampurna
PT Surya Mandala SaKTi
PT Sadikun Chemical Indonesia
Others
Total
26.2
22.0
3.2
0.5
31.6
854.9
3.1%
2.6%
0.4%
0.1%
3.7%
100.0%
Customer-centric approach has resulted in long-standing relationships
18
7
Strong Commitment from Shareholders
Shareholder Structure
Barito Pacific Group
Prajogo
Pangestu
46.26%
(1)
14.82%
Public
(2)
Barito Pacific
Indonesia based conglomerate with business interests in property,
timber, plantation, power generation and petrochemicals
30.57%
Key benefits of partnership
Barito Pacific is committed to the growth and development of CAP
− Available land for expansion
− Financial commitment (e.g. full subscription to 2013 rights offering)
Siam Cement Group
Key benefits of partnership
Thailand’s largest industrial conglomerate and Asia’s leading
chemicals producer
Invested 30% in CAP in 2011
Second largest olefins and polyolefins producer in South East Asia
8.35%
Production know-how and sharing of best operational practices
Raw material procurement savings
Sales and marketing collaboration
Access to Thai financial institutions
Accelerate CAP’s expansion plans
Strong backing from long term marquee strategic regional investors committed to the
development of the business
(1)
(2)
Including 4.75% shares of Marigold Resources Pte. Ltd.
Owns 69.23% of PT Barito Pacific Tbk
19
8
Strong Management Team with Substantial Industry
Experience
Board of Commissioners
DJOKO SUYANTO
TAN EK KIA
HO HON CHEONG
President Commissioner
Independent
Commissioner
VP Commissioner
Independent
Commissioner
Commissioner,
Independent
Commissioner
2 years in Industry
2 year with CAP
44 years in Industry
6 years with CAP
2 years in Industry
2 years with CAP
AGUS SALIM
PANGESTU
LOEKI SUNDJAJA
PUTERA
CHAOVALIT
EKABUT(1)
CHOLANAT
YANARANOP(1)
Commissioner
Commissioner
Commissioner
Commissioner
11 years in Industry
11 years with CAP
15 years in Industry
15 years with CAP
11 years in Industry
5 years with CAP
30 years in Industry
5 years with CAP
Board of Directors
ERWIN CIPUTRA
President Director
KULACHET
DHARACHANDRA(1)
VP Director of Operations
BARITONO
PRAJOGO
PANGESTU
LIM CHONG THIAN
SURYANDI
Director of Finance
Director of Human
Resource and Corp.
Administration,
Independent Director
VP Director of Polymer
Commercial
13 years in Industry
13 years with CAP
(1)
Representative of SCG
23 years in Industry
1 year with CAP
12 years in Industry
12 years with CAP
37 years in Industry
12 years with CAP
27 years in Industry
27 years with CAP
PIBOON
FRANSISKUS RULY
SIRINANTANAKUL(1)
ARYAWAN
Director of
Manufacturing
24 years in Industry
1 year with CAP
Director of Monomer
Commercial
15 years in Industry
15 years with CAP
20
Strong Track Record of Delivering Operational
Excellence and Performance
Naphtha Cracker Utilization(1)
92%
100%
97%
98%
97%
98%
TAM/ Expansion tie-ins: Q4/2015
Ramp-up of new capacity: Q1/2016
97%
82%
79%
74%
92%
98%
103% 100%
97%
76%
66%
65%
Unscheduled repair
91%
86%
93%
Q2-17
Q1-17
Q2-16
YTD June
2017
YTD June
2016
Q2-17
YTD
June
2017
2Q2017
4Q2016
3Q2016
2Q2016
1Q2017
116%
116%
100%
88%
80%
Q1-17
YTD
June
2016
1Q2016
89%
74%
Q2-16 Q1-17 Q2-17
103%
Q2-17
91%
96%
117%
107%
Q1-17
92%
97%
100%
Butadiene Plant Utilization
Q2-16
99%
100%
4Q2015
3Q2015
Styrene Monomer Plant Utilization
YTD
June
2016
YTD
June
2017
Polypropylene Plant Utilization
YTD
June
2016
YTD
June
2017
Polyethylene Plant Utilization
2Q2015
YTD
June
2017
1Q2015
YTD
June
2016
4Q2014
Q2-17
3Q2014
Q1-17
1Q2014
Q2-16
2Q2014
11%
Q2-16
8
Plant utilization has remained high due to our operational process optimization initiatives
(1)
In September to December 2015, we conducted a scheduled TAM and expansion tie-in-works in conjunction with our cracker expansion project, which resulted in the
shutdown of our cracker facility for 85 days and limited our production capacity for 2015. 2016 utilisation was reduced due to ramp-up in 1Q 2016
21
8
Strong Success of Both Vertical and Horizontal
Expansion
(KT/A)
Cracker
expansion &
Acquisiton
of SMI
Merger with
TPI &
Increase PE
Capacity
BD Plant
operation
Successfully acquired and integrated SMI and TPI
Expanded naphtha cracker in 2015 to achieve
economies of scale and take advantage of significant
ethylene shortage in Indonesia
Cracker
expansion
3.301
3.301
− Mechanical completion on 9 Dec 2015, on time and
within budget (c. US$380m)
625
2.576
496
2.080
1.510
570
2.676
100
BD: ∆100KT
C3: ∆150KT
− Total actual project cost in line with budget (c.
US$380m)
Pygas:∆120KT
C4:∆95KT
PE: ∆16KT
PP:
C2: ∆260KT
∆480KT(1)
C2: ∆80KT
− Achieved high utilization rates
C3: ∆50KT
Pygas:∆60KT
C4:∆40KT
SM: ∆340KT
2005
2007
2011
2013
2016
Currently undertaking next stage of expansions and
growth
2016
Expansion of production capacity and product range has enabled us to maintain our market
leading position
(1)
Represents addition to capacity due to merger with TPI that had installed propylene capacity of 480 KT/A at the time of merger
22
3.
Growth Plans
23
Strategic Growth Plan (Excluding Second Petrochemical
Complex)
(KT/A)
SSBR
operation, BD
expansion
PE
expansion, &
PP
Debotlenecking
3.968
3.301
3.458
157
SSBR: ∆120KT
BD: ∆37KT
2016
2018
Furnace
revamping,
MTBE and
Butene-1
4.201
4.201
233
510
C2: ∆40KT
PE: ∆400KT
C3: ∆20KT
PP: ∆110KT
MTBE: ∆130KT
2019
2020
B1: ∆43KT
2020
24
Increase Production Capacity
Butadiene Plant Expansion
New Polyethylene Plant
Increase BD capacity by 100 KT/A to 137
KT/A
New facility of total 400 KT/A to produce
LLDPE, HDPE and Metallocene LLDPE
Rationale:
Further vertical integration
− Add value to incremental C4 post 2015
cracker expansion
− Avoid opportunity loss of exporting
excess C4
− Enjoy BD domestic premium and fulfill
SRI’s BD requirement
Increase cracker capacity by modifying heat
internals to increase ethylene capacity from
860 KT/A to 900 KT/A and propylene
capacity from 470 KT/A to 490 KT/A
Rationale:
Estimated cost: US$45m
− Further vertical integration;
Funding structure: 100% internal cash
− Protect and grow leading polymer
market position in Indonesia
Commenced revamp project in March 2017
Proposed start-up: 1Q2020
License: UNIPOL Polyethylene Process
from Univation Technologies, LLC
Funding structure: 100% internal cash
Estimated cost US$350m
Awarded EPC work to Toyo Engineering
Korea Limited (January 2017); EPC start in
January 2017
Funding structure: Debt and Equity
Awarded Toyo Engineering for EPC work
(Sept 17)
Proposed start-up: 4Q2019
Estimated cost: US$42m
Proposed start-up: 2Q2018
Furnace Revamp
25
Expand Product Offering by Moving Downstream
Synthetic Rubber Project (through SRI Joint Venture)
Part of downstream integration strategy and efforts to produce higher-value added products
Partnership with leading global player Michelin (ownership 55:45%)
Production capacity: 120 KT/A
Estimated total project cost: US$570m
Funding structure: US$120m internal cash and the remaining in debt, with debt fully funded by
Michelin
Construction began in November 2015
Proposed start-up: 1Q2018
Completion progress 93.5% per Sept-2017
Process System
Utility System
SRI Plant Site
Tank Farm
26
Additional Expansion and Product Offering Initiatives
PP Debottlenecking
Debottleneck PP plant to increase capacity
by 110 KT/A from 480 KT/A to 590 KT/A
Rationale:
MTBE and Butene – 1 Plant
Production of 130 KT/A and 43 KT/A of
MTBE and Butene-1, respectively
Rationale:
− Demand and supply gap for PP expected
to widen in Indonesia
− Secure supply of MTBE and Butene-1
which are used in the production of
Polyethylene
− Opportunity to increase PP sales
Estimated cost: US$40m
Funding structure: 100% internal cash
Proposed start-up: 3Q2019
Second Petrochemical Complex
Expected to conduct feasibility study for the
construction and operation of second
integrated petrochemical complex
Complex expected to comprise:
− 1,000 KT/A ethylene cracker
− Excess demand for MTBE in Indonesia
Estimated cost: US$87m
Funding structure: 100% internal cash
Proposed start-up: 3Q2020
− Various downstream derivative products
Project expected to cost US$4 – 5bn
Set up new company (PT Chandra Asri
Perkasa) to undertake new project
Shareholding structure yet to be finalized
and CAP is in discussion with various third
parties
There is land available adjacent to main
petrochemical complex which would be
available for future acquisition as necessary
27
4.
Financial Highlights & Projections
Prudent Financial Policies
Foreign Exchange
Maintain natural economic hedge as underlying sales and majority of costs and borrowings are
denominated in US$
Treasury risk management on Rupiah currency risks:
− Sales are hedged via pricing to customers and forward swaps with reputable banks
− Minimum Rupiah cash holdings of up to 10 – 15% of idle cash to meet operational needs
Maximum total debt to capitalization of 40% on sustainable basis
Maximum Net Debt / Adjusted EBITDA of 3.0x
Minimum Interest Service cover of 1.75x
Minimum Adjusted EBITDA / Interest cover of 3.0x
Liquidity
Seek to maintain minimum cash of US$100m at all times
Return on Capital
Seek minimum 15% IRR for new investments
Payout in the amount of c. 40% of consolidated net profit subject to:
Leverage
Coverage
Dividend Policy
− Liquidity, leverage and reserves
− Financial performance / sustainability
− Projected operational and capital expenditure
29
Credit Ratings
Ba3 / Stable
B+ / Developing;
BB- (SACP)
idA+
Outstanding Bonds:
CAP I 2016 Series A: IDR 361,4bn, coupon 10.8% pa., rating idA+, due date 22 Dec 2019
CAP I 2016 Series B: IDR 138,6bn, coupon 11.3% pa., rating idA+, due date 22 Dec 2021
30
Resilient Revenue Driven by Increase in Sales Volume
Revenue by Product Segments
Sales Volume
(US$m)
(KT)
1.116
1.195
936
5
147
101
882
633
523
4
41
71
239
4
88
107
563
239
217
1
60
110
168
196
175
Q2-16
Q1-17
Q2-17
5
64
131
217
456
432
250
370
YTD Jun 2016 YTD Jun 2017
Note:
138
176
131
529
555
560
59
68
116
68
82
114
77
5
70
14
125
70
93
111
70
0
60
45
111
76
6
63
31
110
Q2-16
Q1-17
Ethylene
Mixed C4
Styrene Monomer
Q2-17
Propylene
Polyethylene
Butadiene
225
225
144
8
116
50
161
147
5
130
59
236
YTD Jun 2016 YTD Jun 2017
Py-gas
Polypropylene
TAM in 2015 and ramp-up in 2016.
31
Financial Highlights
Strong financials further enhanced by economies of scale (in US$m)
Gross Profit
EBITDA
292
295
218
156
224
176
Q2-16
Q1-17
Q2-17
172
154
116
123
YTD Jun 2016 YTD Jun 2017
Q2-16
Net Profit
Net Profit
18%
Margin
Q1-17
Q2-17
YTD Jun 2016 YTD Jun 2017
Cash flow from Operations, Capex
17%
12%
15%
CFO
15%
Capex
198
180
174
132
96
125
108
88
66
4
Q2-16
Q1-17
Q2-17
65
55
YTD Jun 2016 YTD Jun 2017
Q2-16
47
37
18
Q1-17
Q2-17
YTD Jun 2016 YTD Jun 2017
32
Average Realized Prices
Olefins
Polyolefins
Others
2.183
1.358
1.201
1.030
1.028
926
983
1.057
975
972
736
710
376
404
406
442
Q1
2016
Q2
2016
Q3
2016
Q4
2016
729
644
551
2015
Ethylene
Naphtha
1.270 1.318
1.226 1.213 1.232 1.200
1.230 1.225 1.201 1.265 1.200
1.249
1.018
963
805
1.270
1.095
957
746
551
466
Q2
2017
Propylene
2015
507
406
442
Q1
Q2
Q3
20162 20162 2016
Q4
2016
376
Q1
2017
1.183
980
941
721
507
1.062 1.033 1.074
1.008
1.284
404
Polyethylene
Q1
2017
551
466
Q2
2017
Polypropylene
2015
376
404
406
442
Q1
2016
Q2
2016
Q3
2016
Q4
2016
SM
Butadiene
507
Q1
2017
466
Q2
2017
Naphtha
Naphtha
33
Gross Product Margins
Olefins
Polyolefins
27,2%
28,7%
32,2%
32,0%
29,9%
28,2%
15,8%
2,0%
2014
7,0%
(0,9%)
2015
2016
1H2016
1H2017
Styrene Monomer and by-products
2014
2015
2016
1H2016
1H2017
Butadiene and by-products
16,9%
8,7%
7,1%
11,1%
6,1%
8,1%
5,0%
2,9%
1,7%
(5,1%)
2014
2015
2016
1H2016
1H2017
2014
2015
2016
1H2016
1H2017
Improving product margins due to higher utilization rates
34
Strong Balance Sheet Supported by Recent
Financial Profile Strengthening
Cash Balance
Debt and Net Debt
(US$m)
(US$m)
463
278
384
212
373
307
156
161
106
Q2-16
Q1-17
Q2-17
Q2-16
Adjusted EBITDA / Interest(a)
Q1-17
Q2-17
Leverage Ratios(b)
(x)
16,0x
16,0x
16,3x
3,6x
3,2x
0,8x
6,9x
Min
3.0x
4,2x
2014
2015
2016
1H2016
1H2017
2,1x
36%
2014
1,6x
0,6x
2,6x
36%
0,2x
27%
2015
2016
Debt to capital
1,1x
32%
1H2016
0,3x
24%
Max
50%
1H2017
Debt to Adjusted EBITDA
Net debt to Adjusted EBITDA
(a) Adjusted EBITDA / Interest calculated as Adjusted EBITDA divided by finance costs. For 1H2017 calculated as LTM Adjusted EBITDA divided by LTM finance costs.
(b) Debt to capital calculated as total debt divided by (total debt + equity). Debt to Adjusted EBITDA calculated as total debt divided by Adjusted EBITDA. Net Debt to Adjusted
EBITDA calculated as Net Debt divided by Adjusted EBITDA. Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA for 1H2017 calculated as total debt divided by
35
LTM Adjusted EBITDA and Net Debt divided by LTM Adjusted EBITDA respectively.
Capital Expenditure Plan to Pursue Value-Accretive
Growth
Capex Plans Breakdown by Year 2017 – 2019 (US$m)
Sources of Funding
Internal generated cash flows
Proceeds from Rights Issue
Debt drawdown
534
398
303
154
253
81
9
62
12
8
39
45
24
16
30
42
10
11
98
137
19
23
2017F
2018F
2019F
63
BD expansion
PP expansion
Others/TAM
New cracker initial spend
PE expansion
Furnace Revamp
MTBE & Butene-1
Estimated US$1.2b over next 3 years, mainly for Expansion and Debottlenecking
36
5.
Petrochemical Industry Outlook
Ethylene World Supply Growth and Capacity
Ethylene World Supply Growth
(million tons)
(Operating rates)
Actual
250
Forecast
100%
200
90%
150
100
80%
50
70%
0
2009
2011
2013
2015
2017
2019
Ethylene Consumption
Total Capacity (with Unsactioned Capacity)
Operating Rates (with Unsactioned Capacity)
Operating Rates (with No Unsactioned Capacity)
Ethylene Production Capacity: 218MT in 2023
CTO/MTO and
Others
Shale Gas
5%
6%
-
Global ethylene demand
forecasted to grow at c.3.2%
CAGR between 2017 – 2023
As many as 20-26 new ethylene
plants expected to be build
7 – 8 years required from
planning to startup
2021
2023
Total Capacity (with No Unsactioned Capacity)
New Capacity by Region: 25MT (2017 – 2023)
SEA
9%
Asia Pacific (exc.
SEA and China)
1%
Americas
34%
Middle East/Africa
17%
Naphtha
NGLs Cracking
44%
Naphtha/Liquids
Cracking
45%
Europe
19%
China
20%
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The Petrochemical Industry is in a Long Term Cyclical
Phase
Ethylene Spreads Over Naphtha
Gap over naphtha (US$/t)
% Utilisation
700
100%
600
Average 2013-2016: US$567
Average 2017-2019: US$568
90%
500
Average 2020-2023: US$424
400
80%
Average 2009-2012: US$306
300
200
70%
100
0
60%
2009
2010
2011
2012
2013
2014
2015
Ethylene Delta Over Net Raw Material Cost
2016
2017F
2018F
2019F
2020F
2021F
2022F
2023F
Global Operating Rates with Unsanctioned Capacity
Global Operating Rates with no Unsanctioned Capacity
Petrochemical industry profitability to continue on path of sustainable recovery post 2012 as a
result of improving demand and lower capacity addition
Note: Forecast price is based on Brent Crude at US$55 (2017), US$65 (2018), US$70 (2019 – 2025) per barrel (constant 2016 dollars)
Source: Nexant
39
Strong Demand Growth for Petrochemicals in Indonesia
Ethylene (CAGR ’17 – ’23)
Propylene (CAGR ’17 – ’23)
3,2%
Butadiene (CAGR ’17 – ’23)
5,4%
3,1%
17,7%
2,4%
3,4%
1,7%
5,5%
2,4%
Global
SEA
Indonesia
Polyethylene (CAGR ’17 – ’23)
3,4%
3,9%
Global
SEA
Indonesia
Polypropylene (CAGR ’17 – ’23)
4,4%
4,2%
Global
SEA
Indonesia
Styrene Monomer (CAGR ’17 – ’23)
4,7%
10,5%
3,6%
1,6%
Global
SEA
Indonesia
Global
SEA
Indonesia
Global
2,3%
SEA
Indonesia
Petrochemical demand in Indonesia expected to outpace other regions
Source: Nexant
40
Q&A