PT Pelabuhan Indonesia III (Persero)
DISCLAIMER
This presentation has been prepared by PT Pelabuhan Indonesia (Persero) (“Pelindo III” or the “Issuer”). This presentation is being presented solely
for your information and is subject to change without notice. By accessing this presentation, you are agreeing to be bound by the restrictions set out
below. Any failure to comply with these restrictions may constitute a violation of applicable securities laws.
This presentation contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts are
forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results,
performance or achievements of Pelindo III to be materially different from those expressed or implied by the forward-looking statements.
This presentation may not be reproduced, disseminated or quoted without the prior written consent of the Pelindo III. Relaying copies of this
presentation to other persons in your company or elsewhere is prohibited
2
PRIVATE & CONFIDENTIAL
TABLE OF CONTENT
I
COMPANY OVERVIEW
4
II
INDUSTRY OVERVIEW
12
III
KEY CREDIT HIGHLIGHTS
15
IV
FINANCIAL HIGHLIGHTS
25
3
PRIVATE & CONFIDENTIAL
I
COMPANY OVERVIEW
COMPANY OVERVIEW
LEADING PORT OPERATOR IN INDONESIA
Pelindo III is a leading port operator in Indonesia, serving the fast growing regions of Central and Eastern Indonesia,
focusing on both the domestic and international container market
Pelindo III’s container traffic (1)
(TEUs '000)
CAGR (2015 – 2017) : 6.2%
4,360
2,504
4,611
Operates 4 out of the top 10 container ports in Indonesia
43 ports in some of the largest and fastest growing provinces
2,802
2,643
1,856
1,968
2,117
2015
2016
2017
Domestic
Operating history of more than 57 years
YoY 3.1%
4,919
2,378
Strategically important to the maritime development of Indonesia
2,451
1,023
1,055
1,355
1,396
1H 2017
1H 2018
Gateway hub to Central and Eastern Indonesia
International
CARGO SERVICES (78%) (2)
Cargo handling services and provision of
cargo storage and transportation facilities:
- Containerized
- Dry Bulk
- Liquid Bulk
- General Cargo
SHIP SERVICES (11%) (2)
Complete range of ship services
including:
- Pilotage
- Towage
- Berthing Services
(1) Based on internal estimates and excluding private ports and non-commercial government-owned ports
(2) As a percentage of net revenue for 1H 2018
OTHER SERVICES (11%)
(2)
Complementary value added services,
such as:
- Provision of fresh water
- Electricity
- Medical services
- Other non port related services
5
COMPANY OVERVIEW
INTEGRATED SERVICE OFFERING
8,849
NET REVENUE GROWTH
6,480
(Rp Billions)
755
709
7,486
1,375
1,444
864
4,559
4,176
685
493
849
513
6,610
410
5,357
5,016
3,553
2,917
2015
2016
2017
Cargo Services
CARGO SERVICES (78%) (1)
1H 2018 REVENUE SPLIT PER BUSINESS LINE
1H 2017
Ship Services
1H 2018
Other Services
SHIP SERVICES (11%) (1)
OTHER SERVICES (11%)
1H 2018 REVENUE SPLIT PER BUSINESS LINE
(1)
YoY REVENUE TREND
1,600
2% 4%
7%
25%
1,400
14%
20%
19%
1,200
20%
25%
11%
16%
1,000
Rp3.5
Trillion
Rp0.5
Trillion
800
12%
1,444
11%
1,375
10%
600
400
849
755
40%
21%
76%
15%
5%
493
200
0%
-
Containers
General Cargo
Liquid Bulk
Other Cargo Services
(1) As a percentage of net revenue for 1H 2018
2015
Dry Bulk
Pilotage
Towage
Berthing
Other Ship Services
2016
Other Services
2017
1H 2017
(%) of net revenue
1H 2018
6
COMPANY OVERVIEW
GROUP AND SHAREHOLDING STRUCTURE
6
DIRECT SUBSIDIARIES
4
AFFILIATES
13
INDIRECT SUBSIDIARIES
Pelindo III is 100% owned by the Republic of Indonesia
7
COMPANY OVERVIEW
GATEWAY DOMESTIC AND INTERNATIONAL PORT
Pelindo III’s main branch in Tanjung Perak serves as the gateway port for Surabaya (Indonesia’s second largest city), as the domestic hub
for Central and Eastern Indonesia, and one of the key hub identified in the Sea Toll Program
T AN J U N G P E R AK
Tanjung Emas (TEUs)
Tanjung Perak (TEUs)
(B)
2,500
60.0%
608
41.4%
40.2%
10,000
314
310
52.3%
500
1,191
1,487
203
24.7%
243
50.0%
3,327
1,714
29.7%
4,000
5,497
10.0%
5,633
6,761
40.0%
800
30.0%
600
388
408
26.3%
6,761
310
25.0%
147
151
20.0%
1,000
40.0%
15.0%
13.9%
30.0%
1,100
825
400
619
1,132
927
2,652
207
192
426
2,306
1,617
24.7%
261
800
20.0%
5,763
212
51.1%
1,778
394
393
554
1,400
1,200
19.7%
1,577
30.0%
60.0%
1,000
3,533
1H 2018
26.8%
422
20.0%
1,577
62.8%
1H 2017
OTHER PORTS
1,600
50.0%
3,121
19.9%
70.0%
60.0%
56.8%
8,000
6,000
1,577
2017
65.9%
40.0%
30.0%
1,000
1,200
B AN J AR M AS I N
Other Ports (TEUs)
1,400
50.0%
634
2016
70.0%
59.1%
51.1%
2,000
Banjarmasin (TEUs)
(C)
12,000
1,500
524
T AN J U N G E M AS
2015
615
1,126
S
Small Port
(A)
905
879
2,533
2,666
4,647
3,880
3,590
Port Net Revenue (Rp Billions)
619
18.5%
25.7%
825
600
984
20.0%
1,058
1,158
1,058
13.0%
1,158
10.0%
400
5.0%
2,000
10.0%
10.0%
200
200
-
0.0%
0.0%
-
2015
2016
Capacity
2017
1H 2017
Throughput
Utilization
1H 2018
2015
2016
Capacity
2017
1H 2017
Throughput
Utilization
1H 2018
0.0%
0.0%
-
2015
2016
Capacity
2017
1H 2017
Throughput
Utilization
1H 2018
2015
2016
Capacity
2017
Throughput
1H 2017
1H 2018
Utilization
8
COMPANY OVERVIEW
EVOLUTION OF PELINDO III TO A FULLY-FLEDGED
COMMERCIAL PORT AGENCY
2015
Sea Toll Program
Implementation
1999
Pelindo III entered into a
JV with DP World Asia
Holdings Limited
(“DPW”) under 20 year
concession ending 2019
2011
Pelindo III commenced the
development of Teluk
Lamong Terminal in order to
reduce overcrowding at
Tanjung Perak and to
provide additional capacity
2013
commenced
operations of the
international
container terminal
at Teluk Lamong
Formally incorporated as
a limited liability company
pursuant to Deed No. 5
dated December 1, 1992
We pioneered the window
system at Nilam Terminal at
Tanjung Perak and TPKB at
Banjarmasin
2018 - 2022
Key future developments
2016
2012
2010
Achieved capacity of
more than 10 million
TEUs and close to 5
million TEUs throughput
ESTABLISHED
2014
1992
2017
We entered into two joint
ventures with PT Usaha Era
Pratama Nusantara (“UEPN”),
a subsidiary of PT AKR
Corporindo (“AKR”) to
develop and operate Java
Integrated Industrial Port and
Estate (“JIIPE”)
Awarded 25 years
concession for Surabaya
West Access Channel and
established APBS
commenced
operations of the
domestic dry and
liquid bulk terminal
at JIIPE Port
• Phase III of Teluk Lamong
Terminal
• JIIPE Project
• Kendal Port
• Tanjung Bulupandan
• New Gili Mas Terminal at
port in Lembar
• Expansion of Benoa port
in Bali
9
COMPANY OVERVIEW
KEY BUSINESS STRATEGIES
Corporate Culture Transformation
People
Processes
Cultivate a productive culture in the
organization
Business Processes
Participative leadership culture
Maintain optimal number of
employees with appropriate skill
sets
Compatible values
Improve competencies and
understanding of the Company
through rotation of roles
Standardize services in all ports to
increase efficiency
Technology
Enables People & Processes, and
supports daily operations
Port Community System
Automation of services
ICT Based System
Finance platform for payment
transfers
10
COMPANY OVERVIEW
KEY STRATEGIES
Clustering of Services
To Achieve Greater Operational
and Cost Efficiency
•
•
•
Reconfiguring our terminals to cluster our cargo handling
services at our major ports and at our other ports where
feasible
Each terminal will have designated areas that are dedicated to
handling specific types of cargo, thereby improving
productivity and reducing the waiting time for customers
Example of clustering services plan:
• Tanjung Perak Port: Nilam Termina to focus on
container and bulk commodities services and
Kalimas Terminal to focus on providing traditional
shipping services, logistics and docking of small
boats
• Tanjung Emas Port: West Kalibaru Terminal to focus
on dry and liquid bulk terminal services and Tambak
Lorok to focus on traditional shipping services
•
•
•
Diversify Into Complementary
Business Lines
•
•
•
Modernizing our port equipment and infrastructure throughout
our port facilities to increase the capacity of our ports and
improve the services provided to our customers
Modernizing our IT infrastructure, together with state of the art
cargo handling equipment, will eliminate equipment down
time, increase berth utilization and continuously maximize
efficiency and throughput at our ports
•
•
•
Recently established subsidiaries to operate and grow new
non-core lines of business
•
•
Focusing on utilizing information technology as a key aspect in
creating value for customers, partners and stakeholders
in the process of implementing an information and
communication technology (“ICT”) based system to monitor,
coordinate and execute our business activities
Plan to establish a fully integrated terminal and logistics
handling system by 2019
Expanding our operations by increasing capacity at our
existing facilities and developing new ports in strategic
locations
For example:
•
•
Modern equipment will provide greater automation of services
and minimize costs
Implement Technological
Improvements
Expanding service offerings into other lines of business to
optimize the utilization of resources and diversify revenue base
Net revenue from our non-core lines of business is expected to
contribute more than 20.0% of total net revenue by 2019
Prudent Development and
Expansion of New and Existing
Ports and Related Infrastructure
Modernization of Facilities at
Existing Ports
The development of our Teluk Lamong Terminal in
2011 order to reduce overcrowding at Tanjung Perak
The development of JIIPE port, an in integrated port
and industrial estate, featuring multipurpose cargo
handling capabilities
Develop Our Human Resources
and Corporate Culture
•
•
Focus on developing human resources and corporate culture
as a recognition of the need to uphold a corporate culture that
is aligned with business, industry and strategy
in recent years, employee benefits are reviewed and changes
are implemented which we is believed contributed to a
reduction in employee turnover rate
11
PRIVATE & CONFIDENTIAL
II
INDUSTRY OVERVIEW
INDUSTRY OVERVIEW
MARKET OVERVIEW
Growth rate of container rate throughput has risen 4.9% globally since 2006-2017, with most contribution from Asia (60%) as an impact of
potentially untapped markets and a rising middle class
ASIA DRIVING GLOBAL CONTAINER GROWTH
REGIONAL CONTAINER THROUGHPUT MARKET
SHARE (2017)
GLOBAL PORT GROWTH 2006 - 2017
6.6%
6.2%
5.8%
3%
6% 2%
4.9%
4.3%
4.0%
Asia
Europe
9%
3.1%
743
Million
TEUs
9%
2.3%
Middle East-Indian
Sub-Continent
North America
54%
Asia
Middle East
- Sub
Continent
Europe
North
America
Latin
America
Africa
Asia accounting for 54%
container throughput for 2017
of
global
Latin America
17%
World
PROMINENT ASIA MARKET
Asia growing at 5.8%, outpacing global
growth of 4.9% between 2006 to 2017
Africa
Oceania
Impact of potentially untapped markets and
a rising middle class in Asia
Oceania
Source: Drewry Maritime Research
Source: Drewry Maritime Research
Source: Drewry Maritime Research
FAVOURABLE MARKET CONDITIONS IN INDONESIA
INTER-ISLAND CONNECTIVITY
INDONESIA CONTAINER THROUGHPUT
GOVERNMENT INITIATIVES
Million TEUs
15
10
GDP: CAGR
5.7%
5
Sea Toll Programme to support major
domestic sea lanes
Pendulum Nusantara system in an effort to
reduce high logistic costs.
0
2010
2011
2012
2013
2014
2015
2016
Source: Drewry Maritime Research
Source: Drewry Maritime Advisors
A majority of inter-island trade and approximately 90% of
international trade is conducted via maritime transport’
Positive economic conditions have led to Indonesia’s
throughput growth gaining further pace in 2017, with total
throughput volume estimated to have risen between 2016 and
2017 by 7.8% to about 14.8 million TEUs
State
owned
enterprise
companies
(Pelindos) handling most of the container
volumes in Indonesia
13
INDUSTRY OVERVIEW
MARKET OVERVIEW
Strong domestic economic and trade development, geographic reliance on maritime transport, and stimulus packages from the Government
could support port industry in Indonesia to grow further
PENDULUM NUSANTARA
INDONESIA TOP 10 CONTAINER PORTS - 2017
Collaboration of four Pelindo companies in an effort to reduce high
logistic costs.
7%
Develop a more efficient domestic shipping network between six of
Indonesia’s major ports (Belawan, Batam, Tanjung Priok, Tanjung Perak,
Makassar and Sorong) by upgrading these port facilities and increasing
their water depth
OTHERS
4%
4%
21%
14.8
Million
•
•
•
•
•
•
23%
Banjarmasin 2.8%
Teluk Lamong 3.3%
Pontianak 1.9%
Samarinda 1.5%
Bitung 1,5%
Remaining (each 20 years experience
Mohammad Iqbal
Commercial and Operational Director
•
•
•
Education: University of Diponegoro (Bachelor), Sekolah Tinggi Manajemen
(Masters)
Previous position: CEO PT Samudera Golden Mitra
c.20 years experience
Commissioner
Husein Latief
•
Engineering & IT Director
•
•
Education: Trisakti University (Bachelor), University of Indonesia (Masters),
University of Indonesia (Doctor)
Current position: Head of Human Resources Development Division, the Ministry of
Transportation
Appointed to Pelindo III BoC in 2016
•
•
•
Education: Bandung Institute of Technology (Bachelor), IHE-Delft (Masters)
Previous position: Commercial and Business Development Director, Pelindo III
>25 years experience
Heddy Lugito
Toto Heli Yanto
Commissioner
HR & General Affairs Director
•
•
•
•
•
•
Education: Diponegoro University (Bachelor)
Current position: Editor in Chief Gatra
Appointed to Pelindo III BoC in 2016
Dedi Syaruf Usman
Commissioner
•
•
•
Education: Parahyangan University (Bachelor), University of Colorado (Masters)
Current position: Director of Separated State Asset, Ministry of Finance
Appointed to Pelindo III BoC in 2018
Education: Merdeka Surabaya University (Bachelor), Airlangga University (Masters)
Previous position: General Manager of Tanjung Perak
c.19 years experience
U. Saefudin Noer
Finance Director
•
•
•
Education: University of Indonesia (Bachelor & Masters)
Previous position: Senior Vice President, CIMB Niaga
c.21 years experience
24
PRIVATE & CONFIDENTIAL
IV
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
STRONG REVENUE GROWTH AND STABLE MARGINS
NET REVENUE
OPERATING INCOME
(Rp Billions)
3,500
35%
34%
33%
33%
3,000
8,849
27%
7,486
2,500
1,375
864
6,480
1,444
685
755
709
4,559
4,176
3,173
493
513
849
410
6,610
5,357
5,016
2,000
2,229
1,500
2,084
OIM(1)
1,000
1,394
3,553
2,917
Operating Income
1,543
500
-
2015
2016
2017
Cargo Services
1H 2017
Ship Services
1H 2018
2016
2017
1H 2017
1H 2018
Other Services
EBITDA
NET CASH FROM OPERATING ACTIVITIES
(Rp billions)
(EBITDA in Rp Billions | EBITDA margin in %)
46%
0.5
0.5
2015
42%
44%
45%
4,500
4,000
5,015
37%
0.4
3,500
0.4
3,000
0.3
2,500
0.3
4,088
2,000
EBITDA
EBITDA Margin
3,248
0.2
0.2
2,739
2,806
1,500
1,828
0.1
2,061
1,953
2,156
2016
2017
2,558
1,000
500
0.1
0.0
-
2015
2016
2017
1H 2017
1H 2018
2015
1H 2017
1H 2018
26
(1) Operating Income Margin
(2) Profit for the Year Margin
FINANCIAL HIGHLIGHTS
HEALTHY BALANCE SHEET
NET CASH
TOTAL ASSETS
(Rp Billions)
(Rp Billions)
4,755
Net Cash
18,971
2,751
2,618
22,182
25,409
28,712
Assets
1,816
2015
2016
2017
1H2018
2015
TOTAL DEBT (1)
9,821
Debt
5,016
11,281
1,359
(1) Intereset Bearing Debt
1H 2018
(Rp Billions)
15,034
2015
2017
NET CURRENT ASSETS
(Rp Billions)
8,488
2016
2016
2017
1H 2018
2015
932
1,082
2016
2017
1H 2018
Net Current
Assets
27
FINANCIAL HIGHLIGHTS
RESILIENT CREDIT METRICS & PRUDENT DEBT MANAGEMENT
NET DEBT/EQUITY
NET DEBT/EBITDA
Net Debt/EBITDA
Net Debt/Equity
3.8x
0.9x
0.8x
0.8x
2.9x
0.8x
2.1x
2.1x
2015
2016
1H 2018
2017
2015
2017
LTM 2018
DEBT PROFILE (1)
EBITDA/FINANCE CHARGES
EBITDA/Finance
Charges
6.9x
2016
(Rp Billions)
14,258
6.8x
6.3x
5.9x
5.4x
-
2015
2016
2017
(1) As of 30 June 2018
(2) Current Maturity of Long Term Liabilities
1H 2017
1H 2018
Short Term
Bank Loan
175
601
CMLTM (2)
Long Term
Bank Loan
Bonds
Payable
28
This presentation has been prepared by PT Pelabuhan Indonesia (Persero) (“Pelindo III” or the “Issuer”). This presentation is being presented solely
for your information and is subject to change without notice. By accessing this presentation, you are agreeing to be bound by the restrictions set out
below. Any failure to comply with these restrictions may constitute a violation of applicable securities laws.
This presentation contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts are
forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results,
performance or achievements of Pelindo III to be materially different from those expressed or implied by the forward-looking statements.
This presentation may not be reproduced, disseminated or quoted without the prior written consent of the Pelindo III. Relaying copies of this
presentation to other persons in your company or elsewhere is prohibited
2
PRIVATE & CONFIDENTIAL
TABLE OF CONTENT
I
COMPANY OVERVIEW
4
II
INDUSTRY OVERVIEW
12
III
KEY CREDIT HIGHLIGHTS
15
IV
FINANCIAL HIGHLIGHTS
25
3
PRIVATE & CONFIDENTIAL
I
COMPANY OVERVIEW
COMPANY OVERVIEW
LEADING PORT OPERATOR IN INDONESIA
Pelindo III is a leading port operator in Indonesia, serving the fast growing regions of Central and Eastern Indonesia,
focusing on both the domestic and international container market
Pelindo III’s container traffic (1)
(TEUs '000)
CAGR (2015 – 2017) : 6.2%
4,360
2,504
4,611
Operates 4 out of the top 10 container ports in Indonesia
43 ports in some of the largest and fastest growing provinces
2,802
2,643
1,856
1,968
2,117
2015
2016
2017
Domestic
Operating history of more than 57 years
YoY 3.1%
4,919
2,378
Strategically important to the maritime development of Indonesia
2,451
1,023
1,055
1,355
1,396
1H 2017
1H 2018
Gateway hub to Central and Eastern Indonesia
International
CARGO SERVICES (78%) (2)
Cargo handling services and provision of
cargo storage and transportation facilities:
- Containerized
- Dry Bulk
- Liquid Bulk
- General Cargo
SHIP SERVICES (11%) (2)
Complete range of ship services
including:
- Pilotage
- Towage
- Berthing Services
(1) Based on internal estimates and excluding private ports and non-commercial government-owned ports
(2) As a percentage of net revenue for 1H 2018
OTHER SERVICES (11%)
(2)
Complementary value added services,
such as:
- Provision of fresh water
- Electricity
- Medical services
- Other non port related services
5
COMPANY OVERVIEW
INTEGRATED SERVICE OFFERING
8,849
NET REVENUE GROWTH
6,480
(Rp Billions)
755
709
7,486
1,375
1,444
864
4,559
4,176
685
493
849
513
6,610
410
5,357
5,016
3,553
2,917
2015
2016
2017
Cargo Services
CARGO SERVICES (78%) (1)
1H 2018 REVENUE SPLIT PER BUSINESS LINE
1H 2017
Ship Services
1H 2018
Other Services
SHIP SERVICES (11%) (1)
OTHER SERVICES (11%)
1H 2018 REVENUE SPLIT PER BUSINESS LINE
(1)
YoY REVENUE TREND
1,600
2% 4%
7%
25%
1,400
14%
20%
19%
1,200
20%
25%
11%
16%
1,000
Rp3.5
Trillion
Rp0.5
Trillion
800
12%
1,444
11%
1,375
10%
600
400
849
755
40%
21%
76%
15%
5%
493
200
0%
-
Containers
General Cargo
Liquid Bulk
Other Cargo Services
(1) As a percentage of net revenue for 1H 2018
2015
Dry Bulk
Pilotage
Towage
Berthing
Other Ship Services
2016
Other Services
2017
1H 2017
(%) of net revenue
1H 2018
6
COMPANY OVERVIEW
GROUP AND SHAREHOLDING STRUCTURE
6
DIRECT SUBSIDIARIES
4
AFFILIATES
13
INDIRECT SUBSIDIARIES
Pelindo III is 100% owned by the Republic of Indonesia
7
COMPANY OVERVIEW
GATEWAY DOMESTIC AND INTERNATIONAL PORT
Pelindo III’s main branch in Tanjung Perak serves as the gateway port for Surabaya (Indonesia’s second largest city), as the domestic hub
for Central and Eastern Indonesia, and one of the key hub identified in the Sea Toll Program
T AN J U N G P E R AK
Tanjung Emas (TEUs)
Tanjung Perak (TEUs)
(B)
2,500
60.0%
608
41.4%
40.2%
10,000
314
310
52.3%
500
1,191
1,487
203
24.7%
243
50.0%
3,327
1,714
29.7%
4,000
5,497
10.0%
5,633
6,761
40.0%
800
30.0%
600
388
408
26.3%
6,761
310
25.0%
147
151
20.0%
1,000
40.0%
15.0%
13.9%
30.0%
1,100
825
400
619
1,132
927
2,652
207
192
426
2,306
1,617
24.7%
261
800
20.0%
5,763
212
51.1%
1,778
394
393
554
1,400
1,200
19.7%
1,577
30.0%
60.0%
1,000
3,533
1H 2018
26.8%
422
20.0%
1,577
62.8%
1H 2017
OTHER PORTS
1,600
50.0%
3,121
19.9%
70.0%
60.0%
56.8%
8,000
6,000
1,577
2017
65.9%
40.0%
30.0%
1,000
1,200
B AN J AR M AS I N
Other Ports (TEUs)
1,400
50.0%
634
2016
70.0%
59.1%
51.1%
2,000
Banjarmasin (TEUs)
(C)
12,000
1,500
524
T AN J U N G E M AS
2015
615
1,126
S
Small Port
(A)
905
879
2,533
2,666
4,647
3,880
3,590
Port Net Revenue (Rp Billions)
619
18.5%
25.7%
825
600
984
20.0%
1,058
1,158
1,058
13.0%
1,158
10.0%
400
5.0%
2,000
10.0%
10.0%
200
200
-
0.0%
0.0%
-
2015
2016
Capacity
2017
1H 2017
Throughput
Utilization
1H 2018
2015
2016
Capacity
2017
1H 2017
Throughput
Utilization
1H 2018
0.0%
0.0%
-
2015
2016
Capacity
2017
1H 2017
Throughput
Utilization
1H 2018
2015
2016
Capacity
2017
Throughput
1H 2017
1H 2018
Utilization
8
COMPANY OVERVIEW
EVOLUTION OF PELINDO III TO A FULLY-FLEDGED
COMMERCIAL PORT AGENCY
2015
Sea Toll Program
Implementation
1999
Pelindo III entered into a
JV with DP World Asia
Holdings Limited
(“DPW”) under 20 year
concession ending 2019
2011
Pelindo III commenced the
development of Teluk
Lamong Terminal in order to
reduce overcrowding at
Tanjung Perak and to
provide additional capacity
2013
commenced
operations of the
international
container terminal
at Teluk Lamong
Formally incorporated as
a limited liability company
pursuant to Deed No. 5
dated December 1, 1992
We pioneered the window
system at Nilam Terminal at
Tanjung Perak and TPKB at
Banjarmasin
2018 - 2022
Key future developments
2016
2012
2010
Achieved capacity of
more than 10 million
TEUs and close to 5
million TEUs throughput
ESTABLISHED
2014
1992
2017
We entered into two joint
ventures with PT Usaha Era
Pratama Nusantara (“UEPN”),
a subsidiary of PT AKR
Corporindo (“AKR”) to
develop and operate Java
Integrated Industrial Port and
Estate (“JIIPE”)
Awarded 25 years
concession for Surabaya
West Access Channel and
established APBS
commenced
operations of the
domestic dry and
liquid bulk terminal
at JIIPE Port
• Phase III of Teluk Lamong
Terminal
• JIIPE Project
• Kendal Port
• Tanjung Bulupandan
• New Gili Mas Terminal at
port in Lembar
• Expansion of Benoa port
in Bali
9
COMPANY OVERVIEW
KEY BUSINESS STRATEGIES
Corporate Culture Transformation
People
Processes
Cultivate a productive culture in the
organization
Business Processes
Participative leadership culture
Maintain optimal number of
employees with appropriate skill
sets
Compatible values
Improve competencies and
understanding of the Company
through rotation of roles
Standardize services in all ports to
increase efficiency
Technology
Enables People & Processes, and
supports daily operations
Port Community System
Automation of services
ICT Based System
Finance platform for payment
transfers
10
COMPANY OVERVIEW
KEY STRATEGIES
Clustering of Services
To Achieve Greater Operational
and Cost Efficiency
•
•
•
Reconfiguring our terminals to cluster our cargo handling
services at our major ports and at our other ports where
feasible
Each terminal will have designated areas that are dedicated to
handling specific types of cargo, thereby improving
productivity and reducing the waiting time for customers
Example of clustering services plan:
• Tanjung Perak Port: Nilam Termina to focus on
container and bulk commodities services and
Kalimas Terminal to focus on providing traditional
shipping services, logistics and docking of small
boats
• Tanjung Emas Port: West Kalibaru Terminal to focus
on dry and liquid bulk terminal services and Tambak
Lorok to focus on traditional shipping services
•
•
•
Diversify Into Complementary
Business Lines
•
•
•
Modernizing our port equipment and infrastructure throughout
our port facilities to increase the capacity of our ports and
improve the services provided to our customers
Modernizing our IT infrastructure, together with state of the art
cargo handling equipment, will eliminate equipment down
time, increase berth utilization and continuously maximize
efficiency and throughput at our ports
•
•
•
Recently established subsidiaries to operate and grow new
non-core lines of business
•
•
Focusing on utilizing information technology as a key aspect in
creating value for customers, partners and stakeholders
in the process of implementing an information and
communication technology (“ICT”) based system to monitor,
coordinate and execute our business activities
Plan to establish a fully integrated terminal and logistics
handling system by 2019
Expanding our operations by increasing capacity at our
existing facilities and developing new ports in strategic
locations
For example:
•
•
Modern equipment will provide greater automation of services
and minimize costs
Implement Technological
Improvements
Expanding service offerings into other lines of business to
optimize the utilization of resources and diversify revenue base
Net revenue from our non-core lines of business is expected to
contribute more than 20.0% of total net revenue by 2019
Prudent Development and
Expansion of New and Existing
Ports and Related Infrastructure
Modernization of Facilities at
Existing Ports
The development of our Teluk Lamong Terminal in
2011 order to reduce overcrowding at Tanjung Perak
The development of JIIPE port, an in integrated port
and industrial estate, featuring multipurpose cargo
handling capabilities
Develop Our Human Resources
and Corporate Culture
•
•
Focus on developing human resources and corporate culture
as a recognition of the need to uphold a corporate culture that
is aligned with business, industry and strategy
in recent years, employee benefits are reviewed and changes
are implemented which we is believed contributed to a
reduction in employee turnover rate
11
PRIVATE & CONFIDENTIAL
II
INDUSTRY OVERVIEW
INDUSTRY OVERVIEW
MARKET OVERVIEW
Growth rate of container rate throughput has risen 4.9% globally since 2006-2017, with most contribution from Asia (60%) as an impact of
potentially untapped markets and a rising middle class
ASIA DRIVING GLOBAL CONTAINER GROWTH
REGIONAL CONTAINER THROUGHPUT MARKET
SHARE (2017)
GLOBAL PORT GROWTH 2006 - 2017
6.6%
6.2%
5.8%
3%
6% 2%
4.9%
4.3%
4.0%
Asia
Europe
9%
3.1%
743
Million
TEUs
9%
2.3%
Middle East-Indian
Sub-Continent
North America
54%
Asia
Middle East
- Sub
Continent
Europe
North
America
Latin
America
Africa
Asia accounting for 54%
container throughput for 2017
of
global
Latin America
17%
World
PROMINENT ASIA MARKET
Asia growing at 5.8%, outpacing global
growth of 4.9% between 2006 to 2017
Africa
Oceania
Impact of potentially untapped markets and
a rising middle class in Asia
Oceania
Source: Drewry Maritime Research
Source: Drewry Maritime Research
Source: Drewry Maritime Research
FAVOURABLE MARKET CONDITIONS IN INDONESIA
INTER-ISLAND CONNECTIVITY
INDONESIA CONTAINER THROUGHPUT
GOVERNMENT INITIATIVES
Million TEUs
15
10
GDP: CAGR
5.7%
5
Sea Toll Programme to support major
domestic sea lanes
Pendulum Nusantara system in an effort to
reduce high logistic costs.
0
2010
2011
2012
2013
2014
2015
2016
Source: Drewry Maritime Research
Source: Drewry Maritime Advisors
A majority of inter-island trade and approximately 90% of
international trade is conducted via maritime transport’
Positive economic conditions have led to Indonesia’s
throughput growth gaining further pace in 2017, with total
throughput volume estimated to have risen between 2016 and
2017 by 7.8% to about 14.8 million TEUs
State
owned
enterprise
companies
(Pelindos) handling most of the container
volumes in Indonesia
13
INDUSTRY OVERVIEW
MARKET OVERVIEW
Strong domestic economic and trade development, geographic reliance on maritime transport, and stimulus packages from the Government
could support port industry in Indonesia to grow further
PENDULUM NUSANTARA
INDONESIA TOP 10 CONTAINER PORTS - 2017
Collaboration of four Pelindo companies in an effort to reduce high
logistic costs.
7%
Develop a more efficient domestic shipping network between six of
Indonesia’s major ports (Belawan, Batam, Tanjung Priok, Tanjung Perak,
Makassar and Sorong) by upgrading these port facilities and increasing
their water depth
OTHERS
4%
4%
21%
14.8
Million
•
•
•
•
•
•
23%
Banjarmasin 2.8%
Teluk Lamong 3.3%
Pontianak 1.9%
Samarinda 1.5%
Bitung 1,5%
Remaining (each 20 years experience
Mohammad Iqbal
Commercial and Operational Director
•
•
•
Education: University of Diponegoro (Bachelor), Sekolah Tinggi Manajemen
(Masters)
Previous position: CEO PT Samudera Golden Mitra
c.20 years experience
Commissioner
Husein Latief
•
Engineering & IT Director
•
•
Education: Trisakti University (Bachelor), University of Indonesia (Masters),
University of Indonesia (Doctor)
Current position: Head of Human Resources Development Division, the Ministry of
Transportation
Appointed to Pelindo III BoC in 2016
•
•
•
Education: Bandung Institute of Technology (Bachelor), IHE-Delft (Masters)
Previous position: Commercial and Business Development Director, Pelindo III
>25 years experience
Heddy Lugito
Toto Heli Yanto
Commissioner
HR & General Affairs Director
•
•
•
•
•
•
Education: Diponegoro University (Bachelor)
Current position: Editor in Chief Gatra
Appointed to Pelindo III BoC in 2016
Dedi Syaruf Usman
Commissioner
•
•
•
Education: Parahyangan University (Bachelor), University of Colorado (Masters)
Current position: Director of Separated State Asset, Ministry of Finance
Appointed to Pelindo III BoC in 2018
Education: Merdeka Surabaya University (Bachelor), Airlangga University (Masters)
Previous position: General Manager of Tanjung Perak
c.19 years experience
U. Saefudin Noer
Finance Director
•
•
•
Education: University of Indonesia (Bachelor & Masters)
Previous position: Senior Vice President, CIMB Niaga
c.21 years experience
24
PRIVATE & CONFIDENTIAL
IV
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
STRONG REVENUE GROWTH AND STABLE MARGINS
NET REVENUE
OPERATING INCOME
(Rp Billions)
3,500
35%
34%
33%
33%
3,000
8,849
27%
7,486
2,500
1,375
864
6,480
1,444
685
755
709
4,559
4,176
3,173
493
513
849
410
6,610
5,357
5,016
2,000
2,229
1,500
2,084
OIM(1)
1,000
1,394
3,553
2,917
Operating Income
1,543
500
-
2015
2016
2017
Cargo Services
1H 2017
Ship Services
1H 2018
2016
2017
1H 2017
1H 2018
Other Services
EBITDA
NET CASH FROM OPERATING ACTIVITIES
(Rp billions)
(EBITDA in Rp Billions | EBITDA margin in %)
46%
0.5
0.5
2015
42%
44%
45%
4,500
4,000
5,015
37%
0.4
3,500
0.4
3,000
0.3
2,500
0.3
4,088
2,000
EBITDA
EBITDA Margin
3,248
0.2
0.2
2,739
2,806
1,500
1,828
0.1
2,061
1,953
2,156
2016
2017
2,558
1,000
500
0.1
0.0
-
2015
2016
2017
1H 2017
1H 2018
2015
1H 2017
1H 2018
26
(1) Operating Income Margin
(2) Profit for the Year Margin
FINANCIAL HIGHLIGHTS
HEALTHY BALANCE SHEET
NET CASH
TOTAL ASSETS
(Rp Billions)
(Rp Billions)
4,755
Net Cash
18,971
2,751
2,618
22,182
25,409
28,712
Assets
1,816
2015
2016
2017
1H2018
2015
TOTAL DEBT (1)
9,821
Debt
5,016
11,281
1,359
(1) Intereset Bearing Debt
1H 2018
(Rp Billions)
15,034
2015
2017
NET CURRENT ASSETS
(Rp Billions)
8,488
2016
2016
2017
1H 2018
2015
932
1,082
2016
2017
1H 2018
Net Current
Assets
27
FINANCIAL HIGHLIGHTS
RESILIENT CREDIT METRICS & PRUDENT DEBT MANAGEMENT
NET DEBT/EQUITY
NET DEBT/EBITDA
Net Debt/EBITDA
Net Debt/Equity
3.8x
0.9x
0.8x
0.8x
2.9x
0.8x
2.1x
2.1x
2015
2016
1H 2018
2017
2015
2017
LTM 2018
DEBT PROFILE (1)
EBITDA/FINANCE CHARGES
EBITDA/Finance
Charges
6.9x
2016
(Rp Billions)
14,258
6.8x
6.3x
5.9x
5.4x
-
2015
2016
2017
(1) As of 30 June 2018
(2) Current Maturity of Long Term Liabilities
1H 2017
1H 2018
Short Term
Bank Loan
175
601
CMLTM (2)
Long Term
Bank Loan
Bonds
Payable
28