To be the Best. Group /Company. segment (mill. ) Turnover only TILE. Exports share. Total turnover (mill. ) Companies Installed.

Transcription

1 INFO MEMO PT ARWANA CITRAMULIA Tbk 2016

2 To be the Best 2 3 SCG Group Lamosa 4 Rak 5 Ceramica Carmelo Fior 6 Grupo Fragnani Grupo Cedasa Pamesa Kajaria 10 Rovese 19 Arwana Citramulia Exports share estimates on official company data Main Tile Brands / Companies Installed capacity (mill. M2) n.a. Tile plants / Location Production (mill. M2) Total turnover (mill. ) USA Turnover only TILE segment (mill. ) 1 Mohawk Industries, Inc Country Group /Company The Top Ceramic Tile Manufacturer in 2016 $ 3,013 mill. $ 8,072 mill. (tiles, carpet, laminate & w ood) 17 in North America,Mexico, Europe, Russia, American Olean, Dal Tile, KAI, Karema Marazzi, Marazzi, Ragno (tiles + sanitaryw are) 21 Thailand, 7 Vietnam, 4 Indonesia, 1 Philippines Cotto, Prime, Mariw asa, Sosuco, Campana, Kia, DK, Trend Lamosa, Porcelanite, Firenze, Italica, Verve Thailand Mexico (estimates) n.a. 10 in Mexico UAE (tiles sanitary + tablew are) 14 UAE, 1 Bangladesh, 1 China, 1 India, 1 Iran Brazil in Brazil Brazil n.a. n.a. 1 in Brazil Spain (tiles, other) 6 in Spain Cecafi, Pisoforte, Fioranno, Idealle, Ariella Incefra, Incenor, Tecnogres, Luxory Majopar, Cedasa, Vistabella, Lorenzza Pamesa, Pamesa Brazil (tiles, sanitaryw are) 11 in India Kajaria 10 in Poland, Russia, Romania, UK, Germany Cersanit, Opoczno, Meissen Keramik, Pilkington, Mito 5 in Indonesia Arw ana, UNO Brazil India 59.0 Poland 58.0 (estimates) 68.7 n.a. n.a (2014: tiles, sanitaryw are, others) Indonesia in Brazil RAK Ceramics, Elegance

3 To be the Best Total Capacity 2013 : 49,370,000 sqm/year +8,000,000 sqm/year - Plant 4A 2016 : 57,370,000 sqm/year +8,000,000 sqm/year - Plant 5A 2018 : 63,870,000 sqm/year +6,000,000 sqm/year - Plant 5B 2019 : 69,370,000 sqm/year +6,000,000 sqm/year - Plant 4B 2020 : 75,370,000 sqm/year +6,000,000 sqm/year - Plant 5C

4 To be the Best ISO 14001:2004 ISO 9001:2000 ISO 13006:2010 Environmental Management System Quality Management System Ceramic tiles Definitions, classification, characteristics and marking Plant I Plant II Plant III Plant I : November 21, 2002 Plant II : April 26, 2007 Plant III : September 19, 2007 Plant I Plant II Plant III Plant IV Plant V : June 22, 2012 : September 21, 2011 : January 16, 2013 : May 07, 2013 : May 07, 2013 : Januari 29, 2014 : April 22, 2015 : March 28, 2016

5 To be the Best Green Industry Award

6 To be the Best Trifecta Award For Winning Three years in a Row November 26, 2015 Certificate of Appreciation Award From Indonesian Directorate of Taxes April 23, 2015 Asia s Best Companies 2015 Best Managed Company & Most Committed to Paying Good Dividends 2014, 2015 Green Industry Award 2011, 2012, 2013, 2014, 2015 Best of the Best Award The Top 50 Companies 2013, 2014, 2015 Capital Market Award 2014 Best Stock Issuer With Market Capitalization Up To IDR 10 Trillion May 13, 2014 Indonesia World-Record Rekor Bisnis (ReBi) Ceramic Industry with the Most Factory Location in Indonesia 2010, 2011, 2013, 2014 Forbes Asia Best Under a Billion Dollar December 9, 2014 First Ceramic Industry That Received Green Industry Certificate from the Ministry of Industry & Ceramic Industry with the Most Factory Location of Republic of Indonesia October 29, 2013

7 Arwana Vision To be the best company in the ceramic tiles industry, full of creativity and innovation, and able to contribute to the development of the country and the society

8 Creativity 5 Different Locations 2013 Plant IV, Ogan Ilir Plant V, Mojokerto 2015 Plant I, Tangerang Plant III, Gresik Plant II, Serang

9 Creativity Arwana s Distributors & Outlets Sumatera 2011= 10 & 2, = 10 & 3, = 10 & 3, = 11 & 3, = 11 & 4,201 Sulawesi Kalimantan 2011= 4 & = 5 & = 5 & = 5 & 1, = 5 & 1, = 5 & 1, = 5 & 1, = 5 & 1, = 5 & 2, = 5 & 2,203 Sorong 2015= 1 & 1 Jawa & Bali 2011= 20 & 9, = 20 & 10, = 20 & 11, = 21 & 13, = 21 & 14,275 NUMBER OF SUB DISTRIBUTORS & OUTLETS 2011 = 41 Sub Distributor & 14,084 outlet (18%) 2012 = 42 Sub Distributor & 15,668 outlet (11%) 2013 = 42 Sub Distributor & 17,493 outlet (12%) 2014 = 44 Sub Distributor & 20,648 outlet (18%) 2015 = 45 Sub Distributor & 21,881 outlet (5,9%) Ambon 2011= 1 & = 1 & = 1 & = 1 & = 1 & 45 Jayapura 2011= 1 & = 1 & = 1 & = 1 & = 1 & 30

10 Creativity Arwana s Capacity Expansion Arwana Year 75, , , , ,370 Plant 4A 41, , , ,400 22, , , Plant 4B Plant 5B Plant 5A Plant 5C Plant 2A Upgrade Plant 3C Phase 2; Plant 2C Extension Plant 3C Phase 1 Plant 2C Phase 2 Plant 2B Phase 1 Plant 3B Plant 2 Equipment Upgrade 10,775 Plant 3A 7,490 Plant 2A 2,800 Plant 1 Plant 1 Installed 2Capacity (In Thousand m ) Plant 2 Plant 3 Plant 4 Plant : 1,050 B 300 B 150 B 300 B 300 B

11 Plant I Tangerang, Banten (Operated June 1995) Starting Capacity: 2,880,000 sqm / year Current Capacity : 3,780,000 sqm / year ISO 9001 : 2000 Certified ISO : 2012 Certified 11

12 Plant II Serang, Banten (Operated July 1997) Starting Capacity : 4,500,000 sqm / year Current Capacity : 19,500,000 sqm / year ISO 9001 : 2000 Certified ISO : 2011 Certified 12

13 Plant III Wringin Anom-Gresik, East Java (Operated May 2002) Starting Capacity : 3,600,000 sqm / year Current Capacity : 18,090,000 sqm / year ISO 9001 : 2007 Certified ISO : 2013 Certified 13

14 Plant IV Ogan Ilir, South Sumatera (Operated September 2013) Current Capacity : 8,000,000 sqm / year SNI - ISO : 2010 Certified ISO 9001 :

15 Plant Plant V V Mojokerto, East Java (Operated January 2016) Current Capacity : 8,000,000 sqm / year SNI - ISO : 2010 Certified 15

16 Plant V 16

17 Plant V 17

18 Arwana Vision To be the best company in the ceramic tiles industry, full of creativity and Innovation, and able to contribute to the development of the country and the society

19 Innovation Heat Recovery Multi Mill Continues (MMC)

20 Arwana Vision To be the best company in the ceramic tiles industry, full of creativity and innovation, and able to contribute to the development of the country and the society

21 Contribute Corporate Social Responsibility Worship Place Renovation Free Medical Care School Renovation Blood Donation School Supplies Donation Scholarship House Renovation Homecoming Program Orphanage Charity 21

22 Growth Strategy Environment Energy Product Technology Human Resources

23 Environment Plant II Plant I Plant V Plant III Plant IV

24 Energy Production Cost 100% 15% 14% 23% 11% 19% 18% 43% 42% 25% 27% 29% % 12% 23% 22% 21% 40% 42% 26% % 22% 11% 13% 60% 34% 35% 37% 29% 28% 27% % 20% 0% Body Glaze Energy Other 2016 (Q3)

25 Energy Energy Cost Reduction Through Heat Recovery and Multi Layer HD Energy Cost Efficiency with Multi Mill Continues (MMC)

26 Product (Capacity Utilization) 11% 10.5% 20.3% 17.2% 7.12% 15.1% 3.3% 19.3% 9.7% 35.9% Production (in thousand sqm) Installed Capacity (in thousand sqm) Capacity Utilization 2001 (IPO) % (Gas shortage 90,44% in Plant 1 & 3) 97% % 94% (Heat (Machine 93% 91% Recovery in Modificati (Ramadha (Machinery Plant 2B & on in Plant n Holiday) Installation) 3AB) 1 & 2) % Plant 1,2,3 Plant 1,2,3 Utility 103% Utility 101% Plant 4 Plant 4 Utility 65% Utility 92% % 2016(Q3) Plant 1,2,3,4 Utility 91% Plant 5 Utility 79%

27 Technology Heat Recovery Horizontal Dryer Kiln SPR System

28 Technology Digital Printing

29 Human Resources Corporate Plant I Plant II Plant III Plant IV Plant V 5. In House Training 29

30 Human Resources Arwana Management Tandean Rustandy, M.BA. Edy Suyanto, S.E. Ir. Rudy Sujanto Hatta Syafrudin S.H, M.Si Chief Executive Officer Current Chief Operating Officer Current Chief Financial Officer Current Independent Director Current Ir. Lim Tjhiu Iong Renny A. Sandi, SE Rally Sudarta B. Com V.P. Operation Current V. P. Marketing Current V.P. HR & GA Current Agustinus Kusnadi, SE V. P. Financial Controller Current Li Sufan Sufendi, ST V.P. Procurement Current 30

31 Human Resources Arwana Corporate Structure 31

32 FINANCIAL PERFORMANCE 32

33 Net Sales & Net Profit % 27% 20% 21% 20% 11% 16% 10% 28% 51% 8% 20% 54% 26% 19% 23% 20% 64% 50% 10% 73% 15% 33

34 CONSOLIDATED INCOME STATEMENT NET SALES COST OF GOODS SOLD GROSS PROFIT OPERATING EXPENSES Selling General and Administrative Total Operating Expenses INCOME FROM OPERATION OTHER INCOME (EXPENSE) Gain (loss) on foreign exchange Finance Income Finance Costs Others Total Other Income (Expense) INCOME BEFORE INCOME TAX INCOME TAX EXPENSES -net NET INCOME BEFORE MINORITY INTERESTS ON CONSOLIDATED NET INCOME OF SUBSIDIARIES MINORITY INTERESTS ON CONSOLIDATED NET INCOME OF SUBSIDIARIES NET INCOME Total Sales (m2) Total Production (m2) (Q3) ,4% 32,4% 22,30% 20,73% ,3% 21,60% 8,50% 7,91% (24.999) (7.317) (28.012) (799) (5.768) (9.237) (8.485) (14.054) (12.373) (3.946) (355) (115) (632) ,6% 16,10% 5,40% 5,5%

35 1Q - 16 NET SALES COST OF GOODS SOLD GROSS PROFIT 1Q - 15 % 2Q Q - 15 % 3Q Q - 15 % ,76% ,59% ,02% ,28% ,73% 2,29% ,53% ,81% ,67% ,88% ,66% ,04% ,33% ,16% ,32% 20,1% 29,6% 20,8% 21,5% 21,4% 18,7% OPERATING EXPENSE Selling General and Administrative Total Operating Expense ,25% ,87% ,16% ,39% 0,75% -4,68% ,03% 2,18% 15,85% ,74% -1,10% 15,97% ,75% ,85% ,90% INCOME FROM OPERATION ,15% ,37% ,47% 8,0% 15,9% 7,8% 7,0% 7,9% 4,2% OTHER INCOME (EXPENSE) Interest Expense Gain (Loss) on foreign exchange Others Total Other Income (Expense) ( ) ( ) ( ) ( ) -215,40% 179,44% -57,37% -117,80% ( ) ( ) ( ) ( ) -131,52% 239,01% -16,92% -157,55% ( ) ( ) ( ) ( ) ( ) ( ) ( ) 263,18% -91,89% -408,50% -44,71% INCOME BEFORE INCOME TAX ,24% ,60% ,68% 8,2% 14,9% 8,2% 6,2% 6,2% 0,5% ( ) ( ) ,13% -10,07% -38,46% ( ) ( ) ,61% 11,47% 79,84% ( ) ( ) ,84% -28,36% 798,83% ,84% ,59% ,37% 6,1% 11,1% 6,1% 4,7% 4,6% 0,3% ,03% ,69% ,92% ,87% ,87% ,18% 5,9% 11,0% 6,0% 4,6% 4,6% 0,2% INCOME TAX EXPENSE Current Deferred INCOME TAX EXPENSE NET INCOME BEFORE MINORITY INTERESTS ON CONSOLIDATED NET INCOME OF SUBS MINORITY INTERESTS ON CONSOLIDATED NET INCOME OF SUBS NET INCOME Total Sales (m²) Total Production (m²) 14,50% -2,05% 29,95% 32,12% 21,94% 3534,75%

36 NET SALES Q Q % 19,96% ,34% COST OF GOODS SOLD ,84% ,68% GROSS PROFIT ,34% 20,7% OPERATING EXPENSE Selling General and Administrative Total Operating Expense 23,8% ,97% ,68% 0,64% 8,12% ,07% ,9% ,6% -1,25% ( ) ( ) ( ) ( ) ( ) 209,78% -137,98% 52,48% -76,02% INCOME BEFORE INCOME TAX INCOME TAX EXPENSE Current Deferred INCOME TAX EXPENSE ( ) ,89% -9,49% 18,71% ,88% 5,6% 5,8% ,92% ,70% 5,5% 5,8% INCOME FROM OPERATION OTHER INCOME (EXPENSE) Interest Expense Gain (Loss) on foreign exchange Others Total Other Income (Expense) NET INCOME BEFORE MINORITY INTERESTS ON CONSOLIDATED NET INCOME OF SUBSIDIARIES MINORITY INTERESTS ON CONSOLIDATED NET INCOME OF SUBSIDIARIES NET INCOME Total Sales (m²) Total Production (m²) ( ) ,85% 21,58% 19,27% 36

37 Profitability Ratios (3Q) Gross Profit Margin 31% 30% 32% 31% 34% 35% 32% 22% 21% Net Profit Margin 8% 9% 9,5% 10,3% 14,2% 17,0% 16,1% 5,4% 5,5% Return on Equity 19% 19% 19% 20% 26% 31% 29% 8% 7% Return on Assets 7% 8% 9% 11% 17% 21% 21% 5% 4% 11% 11% 14% 17% 27% 33% 35% 8% 9% 76% 79% 97% 102% 136% 130% 168% 102% 124% 158% 138% 112% 72% 52% 48% 38% 60% 66% Gearing Ratio 71% 63% 48% 33% 11% 5% 2% 1% 11% Debt to Assets 61% 58% 52% 42% 34% 32% 28% 37% 40% Return on Investment Solvability Ratios Current Ratio Debt to Equity Ratio 37

38 PRODUCTION UNIT COST EXCHANGE RATE PRODUCTION COST PER UNIT Body Glaze Total Raw Material Cost per m2 Direc Labor Cost VARIABLE MANUFACTURING COST Natural Gas Electricity Spare Parts Packing Materials Supporting Materials Diesel Oil and Lubricant Total Variablle Manufacturing Cost TOTAL VARIABLE PRODUCTION COST FIXED PRODUCTION COST PER UNIT Depreciation Salary Others TOTAL FIXED PRODUCTION COST TOTAL PRODUCTION COST PER UNIT Q Q % WEIGHT ,5% ,8% -4,9% -4,9% 4,7% -1,5% 0,2% ,6% -5,1% 34,3% 20,9% 6,0% -4,3% 4,3% 1,1% 0,5% -0,5% 1,1% 1,0% 0,1% 0,0% 2,2% 0,9% ,5% 6,8% 33,9% 10,3% 0,5% 0,3% 0,7% 1,5% ,4%

39 Profitability Ratio - ROE % 30.6% % % 30% % % 19.0% % 20% % % 10% % 0% Net Profit 2012 Equity 2013 ROE

40 Liquidity Ratio Current ratio 180% 161% 160% 140% 124% 130% 120% 100% 117% 102% 95% 78% 80% 76% 79% 60% 102% 97% 66% 40% 33% 20% 11% 11% 5% 2% 1% 0% Current Ratio Gearing Ratio (Q3) 40

41 37,490 28,725

42 INDONESIAN CERAMIC DEMAND Total House needed per Year Unit Population Growth 1.3% per year 839, ,850,000 x 1.3% 3.9 House refurbishment 5% per year 3,238,580 64,771,600 x 5% House Back Log 1,360,000 13,600, year 5,438,080 CERAMIC DEMAND = 435,046,400 M2

43 Installed Capacity Ceramic Demand Capacity Utility Output % % % %

44 THANK YOU