April 5 th, 2016 Distributor and Manufacturer - Basic and Specialty Chemicals INVESTOR NEWSLETTER Contents 1... Investor Update 2... Financial Highlights 6... Share Price History 7... About LTLS
INVESTOR UPDATE PT LAUTAN LUAS Tbk completed the new Distribution Centre strategically located in Semper, near the Tanjung Priok port, as part of efforts to strengthen the distribution network. This bulk chemical handling facility addresses the commitment of the Company to provide modern quality control systems. 1
FINANCIAL HIGHLIGHTS PT LAUTAN LUAS Tbk is pleased to announce its full year 2015 results as follows: Despite the domestic and regional economic environment, Lautan Luas (LTLS) posted full year 2015 revenue of Rp 6,466 billion, up by 9.8% compared to the previous year result of Rp 5,888 billion. The increase was driven mainly by growth in the Distribution segment, which was reflected to several product segments. Gross margin for the year was down slightly compared to the previous year on the weakness of the Rupiah due to the slow market conditions. Operating income was down by 22.5% versus the prior year period due mainly to lower other income. Last year, the Company recorded a net other income of Rp 104 billion, derived primarily from a gain on the sale of an investment undertaken in line with the Company s plan to focus on its core businesses. Net profit in the reported period was also impacted by increased financing costs due to higher bank borrowings, as well as less favorable performance from our affiliate companies. In 2015, EBITDA reached Rp 408 billion, down by Rp 118 billion from the prior year. The decrease was primarily due to lower other income on the 2014 sale of an investment undertaken in line with the Company s plan to focus on its core businesses, as described earlier. Global economic instability impacted Indonesian equity markets as well. Management approved a program to take advantage of the depressed valuations by authorizing a buyback of Company shares with a value up to 3% of paid-in capital. The program was funded through internal cash flows. 2
FINANCIAL HIGHLIGHTS CONSOLIDATED INCOME STATEMENT in Billion IDR FY15 FY14 YoY% 4Q15 3Q15 QoQ% Revenue 6,466 5,888 9.81 1,627 1,515 7.38 Gross Profit 1,084 1,019 6.41 273 252 8.23 Gross Profit Margin 16.77% 17.31% (0.54) 16.76% 16.63% 0.13 Selling, general and administrative (749) (684) 9.46 (196.85) (185.05) 6.38 expenses Forex Gain (Loss) (22) (19) 16.05 (6.64) 3.85 (272.55) Other Income (Expenses) 12 104 (88.60) 7.45 0.87 757.42 Operating Income 326 420 (22.47) 77 72 7.03 Operating Income Margin 5.04% 7.13% (2.10) 4.72% 4.73% (0.02) Profit Before Income Tax 77 277 (72.22) (3) 1 (349.12) Total Comprehensive Income 157 217 (27.61) (89) 39 (324.88) Profit for The Year Attributable to Owners of the Parent Entity 4 165 (97.53) (20) (14) 42.12 Net Margin 0.06% 2.80% (2.74) (1.25%) (0.95%) (0.28) EBITDA* 408 526 (22.33) 103 77 33.18 USD : IDR Exchange Rate Average Rate** 13,457 11,802 13,457 13,261 Ending Rate 13,795 12,440 13,795 14,657 * EBITDA does not include foreign exchange gains or losses for the relevant period ** Average Rate is defined as the average closing rate at the end of each day for the relevant period 3
FINANCIAL HIGHLIGHTS CONSOLIDATED BALANCE SHEET in Billion IDR Dec-2015 Dec-2014 YoY% Dec-2015 As of 30- Sept-2015 QoQ% Cash & Equivalent 120 228 (47.29) 120 420 (71.33) Short Term Investments net 24 13 89.19 24 25 (3.70) Trade Receivables 1,333 1,127 18.28 1,333 1,239 7.64 Inventories 900 897 0.25 900 919 (2.17) Others 272 231 17.71 272 492 (44.75) Current Assets 2,649 2,497 6.11 2,649 3,095 (14.41) Fixed Assets 1,589 1,161 36.88 1,589 1,480 7.37 Others 1,155 1,017 13.54 1,155 1,217 (5.13) Non-Current Assets 2,744 2,178 25.98 2,744 2,698 1.73 Total Assets 5,393 4,675 15.37 5,393 5,793 (6.90) in Billion IDR Dec-2015 Dec-2014 YoY% Dec-2015 As of 30- Sept-2015 QoQ% Bank Borrowings 1,338 849 57.58 1,338 1,680 (20.35) Trade Payables 1,146 1,027 11.60 1,146 1,055 8.65 Leasing / Bank 89 80 11.14 89 86 2.68 Others 154 129 19.36 154 187 (17.43) Current Liabilities 2,727 2,085 30.79 2,727 3,008 (9.33) Bond/Leasing/Bank 866 904 (4.20) 866 877 (1.28) Others 180 151 19.60 180 141 28.17 Non-Current Liabilities 1,046 1,055 (0.80) 1,046 1,018 2.79 Equity 1,620 1,535 5.53 1,620 1,767 (8.33) Total Liabilities & Equity 5,393 4,675 15.37 5,393 5,793 (6.90) 4
Financial Highlights Working Capital Cycle in Billion IDR 2015 2014 2013 2012 2011 Trade Receivables (T/R) 1,333 1,127 1,143 942 1,049 T/R Days 74 69 72 55 68 Inventories 900 897 891 818 1,009 Inventory Days 60 66 67 55 75 Trade Payables (T/P) 1,146 1,027 1,133 892 995 T/P Days 77 76 85 60 74 Working Capital Trade 1,087 997 901 868 1,063 (T/R + Inv T/P) days 58 59 54 50 69 Key Performance Ratios 2015 2014 2013 2012 2011 Asset Growth (%) 15.37 3.08 11.77 0.36 12.51 Revenue Growth (%) 9.81 2.67 (7.70) 12.38 41.71 Gross Margin (%) 16.77 17.31 16.30 13.19 12.24 Operating Margin (%) 5.04 7.10 4.85 4.32 3.66 EBITDA */Net Int. Exp. ** (X) 2.25 4.26 5.19 3.30 2.64 Net Debt ***/Equity (X) 1.34 1.03 1.13 1.50 1.86 Net Debt ***/EBITDA* (X) 5.32 3.04 2.62 4.01 5.96 Current Ratio (X) 0.97 1.20 1.14 ****0.82 1.04 * EBITDA does not include foreign exchange gains or losses for the relevant period ** Net Interest Expense is defined as Interest Expense less Interest Income *** Net Debt is defined as Total Interest Bearing Loans less Cash & Cash Equivalents **** The Current Ratio includes the Company s Bond III/2008 obligations which matured in March 2013 5
Share Price History Share(millions) 1,560 Price in 2015, Dec 30 (Rp) 500 Price / Earning (x) 166.67 Dividend Yield (%) 9.20 ROE (%) 0.25 52wk High (Rp) 375 52wk Low (Rp) 825 EPS (in Rp) 3 6 6
About LTLS Established in 1951, PT LAUTAN LUAS Tbk is a distributor and manufacturer of basic and specialty chemicals. The Company represents over 100 international principals, distributing over 1,000 chemical products to more than 2,000 industrial customers throughout Indonesia and the Asia Pacific region. In addition to the Jakarta headquarter, the Company operates five branches and nine representative offices located in various major cities throughout the archipelago, including a regional office in Singapore that oversees company operations in China, Thailand, and Vietnam. In manufacturing, the Company currently has stakes in seventeen production facilities in Indonesia, two facilities in China, and one in Vietnam. Its Support & Services business comprise of three subsidiaries that were previously the Company s internal departments, offering supply chain, IT, and laboratory services. For more information, please contact Investor Relations Eurike Hadijaya Investor.relations@lautan-luas.com +62 21 5369 6280 UPCOMING EVENT May 25 th, 2016 Analyst Meeting FY15 & 1Q16 Rose Garden International Restaurant Graha Indramas, 3 rd Floor Jln. AIP II K.S. Tubun Raya No. 77, Jakarta 11410 www.lautan-luas.com PT Lautan Luas Tbk @PTLAUTANLUASTbk 7