PT Nipress Tbk. Analyst Meeting Presentation. Indonesia Stock Exchange Conference Room Tower 2, 1 st Fl 22 November 2013

Transcription

1 PT Nipress Tbk. Analyst Meeting Presentation Indonesia Stock Exchange Conference Room Tower 2, 1 st Fl 22 November 2013

2 Important Notice and Disclaimer The information and opinions contained in this presentation have not been independently verified, and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of, the information or opinions contained herein. It is not the intention to provide, and you may not rely on this presentation as providing, a complete or comprehensive analysis of the condition (financial or other), earnings, business affairs, business prospects, properties or results of operations of the company or its subsidiaries. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. Neither the company (including any of its affiliates, advisors and representatives) nor the underwriters (including any of their respective affiliates, advisors or representatives) shall have any responsibility or liability whatsoever (in negligence or otherwise) for the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein nor for any loss howsoever arising from any use of this presentation. In addition, the information contained in this presentation contains projections and forward-looking statements that reflect the company's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control of the company and its directors. No assurance can be given that future events will occur, that projections will be achieved, or that the company's assumptions are correct. Actual results may differ materially from those forecast and projected. This presentation is not and does not constitute or form part of any offer, invitation or recommendation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. This presentation may not be used or relied upon by any other party, or for any other purpose, and may not be reproduced, disseminated or quoted without the prior written consent of the company. Any investment in any securities issued by the company or its affiliates should be made solely on the basis of the final offer document issued in respect of such securities. 2

3 Overview PT Nipress Tbk. Stored Energy Solution Company Introduction Established in 1970 Business area: Battery manufacturing Capacity: 2.5 million automobile and industrial battery per year and 3 million motorcycle battery per year Location: Jl Raya Narogong Km. 26 Cileungsi, Bogor Land area: 11 hectare System certification: ISO 9001:2008, ISO TS 16949:2002, ISO 14001:2004, OHSAS 18001:2007 Shareholding Structure PT Tritan Adhitama Public > 5 and/or Public Nugraha Affiliated Individual <

4 History and Recent Development 1970 Initiated joint venture with production of positive and negative plates for automobile batteries. Founded by Mr. Robertus Tandiono. Nippondenchi Kogyo Co. joint venture with PT Pemuda Express established PT Nipress 1985 Having Japanesse Technical Expert support until First in Indonesia export to Asian countries 1991 The company go public by listed the shares in Jakarta and Surabaya Stock Exchange 1996 Launched complete range of motorcycle battery type casing made of polypropylene 1999 Implementation and certification of DIN ES ISO 9001:1994 DIN ES ISO 9001: Implementation and certification of ISO 14001:2004 from RW TUV Implementation and certification of ISO TS from RW TUV 2010 Implementation and certification of OHSAS 18001: Changed the status of the company from foreign investment (PMA) to domestic investment company (PMDN) Start production of positive and negative plates for motorcycle batteries 1994 Company s factory relocated to Jl. Raya Narogong Km 26 Cileungsi Bogor West Java Launched complete range of automobile battery type casing made of polypropylene 2003 Participated on AEDSI Project Kaizen Program Appointed to develop Lithium Battery for National Electric Vehicle Certification of TKDN (VRLA) Certification of Quality Assurance Telkom (NS Battery) 2013 Launched NS Admiral battery VRLA technology for motorcycle Declared Bonus Shares and Stock Split 4

5 Board of Commissioners & Directors Board of Commissioners Ferry J Robertus Tandiono President Commissioner Feliawati Commissioner Raja Sirait Independent Commissioner Appointed as President Commissioner of the Company since More than 30 years active in Battery Industry He began his career in the Company and has held various positions such as Director, Production Supervisor and Production Manager. Appointed as Commissioner of the Company since More than 30 years active in Battery Industry Previously served the Company as Director Appointed as Independent Commissioner of the Company since He is currently serving as Managing Partner Law Firm Raja Sirait & Partners Board of Directors Jackson Tandiono President Director Richard Tandiono Director Herman Selamat Director Appointed as President Director of the Company since More than 12 years active in Battery Industry He began his career in the Company and has held various positions such as Director, Production Supervisor and Plant Manager Appointed as Director of the Company since More than 7 years active in Battery Industry He began his career in the Company and has held various positions such as Director, General Manager. Appointed as Director of the Company since More than 30 years active in Battery Industry He began his career in the Company and has held various positions such as Director, Supervisor and Manager. 5

6 Products and Revenue Breakdown Key Products Revenue Breakdown by Product (IDR bn) Automotive Motorcycle Industrial OEM OEM Transportation After Market Private Brand Stationary Private Brand Motive Fleet Domestic Customer Mercedes-Benz Benelli PT Daihatsu Suzuki Telekomunikasi KIA Indobattery Sellular Nissan Bosch PT Indosat Tbk. Bosch PLN Holcim Ministry of Defence Ministry of Energy and Mineral Resources AMB MCB Industrial Revenue Breakdown by Market Domestic Export

7 Summary Financials Growing Revenue with Improving Margin Financial Highlights Revenue Growth (IDR bn) Income Statement (IDR bn) Q Revenue Gross Profit Operating Income Net Income EBITDA Balance Sheet (IDR bn) Q Cash Total Current Assets Total Noncurrent Assets Total Asset Total Current Liabilities , Total Non Current Liabilities Total Liabilities Total Equity Ratios Q Gross Margin Operating Margin Profit Margin EBITDA Margin A/R Days Turnover * A/P Days Turnover * Inventory Days Turnover * *annualized income statement CAGR Q Net Profit Growth (IDR bn) CAGR Q YoY 97.5 YoY Q Q

8 Corporate Actions September 2013 EGMS Bonus Shares Capitalized Bonus Shares of Rp Additional new shares of shares. Total number of shares become December 2013 EGMS Rights Issue Target Proceeds : Rp billion Use of Proceeds: Industrial Battery Expansion (Rp.147 billion) and Working Capital (Rp billion) 25 October 2013 EGMS Stock Split Stock Split Ratio 1:20 Total number of shares become

9 Business Plan Strategy Expand Production Capacity to increase market share Increase in capacity from 2,5 million to 3 million for Automotive Battery The increase in capacity is planned together with additional capacity for Industrial battery from 200,000 to 544,000. Increase capacity from 3 million to 4 million for Motorcycle Battery Develop and Provide New Battery Types Nipress continue to develop a new battery types to meet market demand in other industrial fields such as Industrial Battery for telecommunications which was started since 2011, batteries for electricity, batteries for UPS, Power Supply and Solar Home Systems Develop the working relationships and increase the supply to the main / largest sole agents Beside continue to develop the working relationships and increase the supply to the main and largest sole agents in Indonesia such as Daihatsu, Mercedes Benz and Nissan, Nipress also starts a relationship with Suzuki,Honda and General Motor. Improve productivity & Increasing the battery knowledge Nipress constantly strives to improve productivity, one of the steps is to improve education for employees to be more competent in their fields Increasing the battery knowledge with the ultimate aim to increase the efficient use of raw materials or other materials 9

10 000 Units 000 Units Automotive & Motorcycle Industry Prospect 4W Sales in Indonesia, F 2W Sales in Indonesia, F CAGR : CAGR : 21 1,814 1,512 1,116 1, ,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000-7,383 8,013 7,956 7,590 7,064 7,241 5, W Sales Volumes 2W Sales Volumes The future automotive and motorcycle industry shows good prospect since 4W and 2W sales are expected to grow with CAGR 21 and 4. This growth also means growth opportunity for automobile battery industry. Sales of automobile battery are also expected to grow in line with Automobile sales growth. Source: Gaikindo, Various Sources 10

11 In USD Telco Power Solution Market Power Solution Market, 2013F-2017F 350,000,000 CAGR ( 13-17) of ,000, ,429, ,556, ,000, ,000, ,431, ,659, ,576, ,000, ,000,000 50,000, Source: Frost & Sullivan 11

12 Telco Power Solution Potential Target Market Market share of Power Solution industry in Indonesia (ytd 2013) Telkomsel 1 Indosat HDTE Abhimata Westindo Wyraki Tricipta 14 4 HDTE Westindo Emerson XL Graha Emerson 85 Source: Various Sources HDTE : Hariff Daya Tunggal Engineering 12

13 Telco Power Solution Market (cont d) Tsel Indosat XL Others Forecast Power Solution Market (USD), Tsel 77,148,194 80,872,367 86,089,455 99,050, ,796,506 Indosat 37,063,362 38,603,077 40,347,101 45,632,976 48,813,512 XL 34,444,755 36,662,140 39,643,373 46,438,263 51,719,078 Others 52,775,005 59,522,062 68,496,242 77,307,629 82,227,523 Source: Frost & Sullivan 13

14 Market Position Automobile Market Share Motorcycle Market Share Industrial Battery Market Share GS Yuasa Nipress Gforce Incoe GS Yuasa Nipress Others NS Battery Other The Company is one of the leading automobile battery producer with a market share of 13 The Company is the top three market leader with 18 of market share in motorcycle battery market The Company is the only local company that produce Industrial battery in Indonesia with a market share of 10 Growing market and increasing market share provide plenty of room for the Company to expand Source : Company, GIAM, Data as per

15 Industrial Battery Expansion Plan Industrial Battery Development Strategy Capacity Plan for Industrial Battery Expansion Industrial Battery Uom Installed Capacity (000) units Production Volume (000) units Utilization Rate Total estimated capex to expand Industrial battery : Rp281 billion. 15

16 Industrial Battery Expansion Plan (cont d) 1 Attractive Domestic Market in Telco Power Solution 4 Brand enhancement by successfully utilized battery as a power supply in remote areas 2 Government regulations imposed for the use of domestic products (TKDN) 3 Reduce cost due to lower marketing expense costs 16

17 Capex Plan & Rights Issue Proceeds Capex Plan 2014 Automotive Plant Expansion Building IDR mn Machinery IDR mn Total Investment IDR mn Industrial Plant Expansion Building IDR mn Machinery IDR mn Total Investment IDR mn Financing Structure Capex Requirement: Rp338 billion Debt Financing : Rp170.8 billion Equity Financing : Rp147.2 billion W/C Requirement : Rp112.8 billion (100 Equity) Total Funding Requirement : Rp430.8 bn Rights Issue Use of Proceeds Industrial Plant Expansion IDR mn Working Capital IDR mn Grand Total IDR mn

18 Rights Issue Timetable Events Date Notice of EGMS : 11 November 2013 EGMS Announcement : 19 November 2013 Rights Issue EGMS : 19 December 2013 Cum date : 4 th week of December Ex date : 4 th week of December Recording date : Early January 2014 Listing of rights, trading and exercise period : 3 rd Week of January 2014 Distribution period of shares subscribed from rights : 3 rd Week of January 2014 Last date of additional subscription payment : 4 th week of January 2014 Allotment and Refund : 4 th week of January

19 Investment Highlights Improving Financial Performance Strong Future Growth Solid and Well Experienced Management The only local public listed battery manufacturer in Indonesia Technology Collaboration with Overseas R&D Institutions Well Equipped Production Facility to Produce High Quality Battery High Demand In Automotive and Industrial Battery Market 19

20 THANK YOU