Management Presentation PT Chandra Asri Petrochemical Tbk [TPIA.JK] - PowerPoint PPT Presentation

Management Presentation PT Chandra Asri Petrochemical Tbk [TPIA.JK] Jakarta, September 2016

1. Company Profile 2. Operational & Financial Performance 3. Project Updates 4. Industry Outlook 2

1. Company Profile 3. Project Updates 2. Operational & Financial Performance 4. Industry Outlook Company Profile (“ CAP ”)  The largest integrated producer of Olefins and Polyolefins in Indonesia.  Producing plastic raw materials and chemicals used in a variety of everyday consumer products (packaging, pipes, jerry cans, automotive, electronics, shoes, etc.).  Owns the only Naphtha Cracker, Styrene Monomer, and Butadiene plant in Indonesia.  The largest producer of Propylene (470KTA) & Integrated Petrochemical Complex Polypropylene (480KTA) in Indonesia.  Sole producer of Ethylene (860KTA); and one of two Polyethylene producers (336KTA) in Indonesia.  Strategic/adjacent plant location with customers in the industrial estate of Cilegon-Merak.  Operates 3 Jetty with capacity of DWT 6K, 10K, and 80K Polypropylene Plant Naphtha Cracker within the plant complex to facilitate logistics.  Backed by strong principal shareholders, Barito Pacific Grup* (65.2%) and SCG Chemicals (30.5%) as of Aug 2016. Notes: (*) Including the ownership of Marigold Resources and Magna Resources. KTA: Kilo tonnes per annum; DWT: Dead-weight ton Styrene Monomer Plant Butadiene Plant 3

1. Company Profile 3. Project Updates 2. Operational & Financial Performance 4. Industry Outlook 23 years track record of successful growth 2004 2011 2012 2010  Product expansion through  Refinanced bond with  Issued  Merger of CAP and TPI effective selling of Mixed C 4 lower cost US$220m 7- inaugural 5- from 1 Jan 2011 PT Chandra Asri year term loan, year US$230m  Completed de-bottlenecking in substantially reducing Bond Apr 2011 to raise capacity of PT Chandra Asri Petrochemical Tbk. 2007 interest expense polypropylene plant to 480ktpa  Added an extra furnace,  SCG acquired 30% of CAP from increasing ethylene production 1995 Barito Pacific and Temasek by 80ktpa and extended 2014  Commercial production pipeline network by 25 km  Commenced Cracker begins at CAP with initial  Acquired 100% of PT Styrindo expansion project 600KTPA cracker capacity of Mono Indonesia (“SMI”) to 860 KTPA. 520ktpa 2007 2011 1992 1993 1995 2004 2009 2010 2012 2013 2014 2015 PT Tri Polyta Indonesia Tbk. 2013 2015 1995 2009  Formed JV with Michelin (SRI)   Increased Completed 1992  Completed Cracker in June 2013 for construction of  Train 3, raising capacity of PP 2011 Started commercial production expansion project in Dec SBR Plant capacity of plant to 480KT of polypropylene comprising of 2  2015 to raise capacity to Commenced  Commenced operation of polypropylene trains with annual capacity of 860KTPA. construction of plant to Butadiene plant in Sept 2013 160ktpa Indonesia’s first  Appointed Toyo Eng. Corp 360ktpa butadiene plant in  Secured funding for Cracker for construction of SBR Aug 2011 expansion: Plant.  Secured US$150m  US$128m rights issue in  Refinanced US$150m loan 1993 term loan to fund November 2013  with lower cost the butadiene Increased capacity of PP plant to  US$265m 7-yrs term loan in US$94.98m 7-year term project in Nov 240ktpa December 2013 loan. 2011 4

1. Company Profile 3. Project Updates 2. Operational & Financial Performance 4. Industry Outlook Strong management team with extensive industry experience Board of Commissioners Agus Salim Loeki Cholanat Djoko Suyanto Tan Ek Kia Ho Hon Cheong Chaovalit Ekabut (1) Pangestu Sundjaja Putera Yanaranop (1) 4 years in industry 41 years in industry 9 months in industry 10 years in industry 15 years in industry 11 years in industry 28 years in industry 1 year with CAP 5 years with CAP 9 months with CAP 9 years with CAP 14 years with CAP 4 years with CAP 4 years with CAP Senior Management Erwin Ciputra President Director 13 years in industry 12 years with CAP Kulachet Piboon Baritono Terry Lim Chong Fransiskus Suryandi Dharachandra (1) Sirinantanakul (1) Pangestu Thian Ruly Aryawan Director of Human VP Director of Director of VP Director of Director of Director of Resource and Corp. Operations Manufacturing Polymer Commercial Finance Monomer Commercial Administration 19 years in industry 10 years in industry 34 years in industry 26 years in industry 22 years in industry 13 years in industry Started June16 with CAP 9 years with CAP 10 years with CAP 26 years with CAP Started Jan16 with CAP 13 years with CAP (1) Appointed by SCG. 5

1. Company Profile 3. Project Updates 2. Operational & Financial Performance 4. Industry Outlook Integrated Business Operations “ Integrated business operations from upstream to downstream resulting in higher efficiency, lower costs, and value- added ” . Crude Oil Oil & Gas Refinery Diesel Kerosene Gasoline Naphtha LPG Condensate Petrochemical Naphtha Cracker Upstream Ethylene Propylene Py-Gas Mixed C4 Petrochemical Styrene Monomer Polyethylene Polypropylene Butadiene Raffinate - 1 Midstream New Generation Synthetic Rubber Legend: Future products by SRI CAP Facility CAP Products 6

1. Company Profile 3. Project Updates 2. Operational & Financial Performance 4. Industry Outlook Integrated Business Operations ( cont’d ) Plant Main Process Key Markets Key Products Polyethylene LLDPE (1)  Domestic Ethylene 330  Licensed by  Exporr KTPA Univation HDPE (2) 860 KTPA  336 KTPA 430  Domestic KTPA Styrene Monomer  Licensed by  Domestic 100 Mobil-Badger  Export KTPA and Lummus Naphtha Naphtha  340 KTPA Cracker Homopolymer 2,300 licensed by Lummus and KTPA Polypropylene Propylene KBR. Random  Domestic  W.R. Grace Copolymer 470 KTPA  480 KTPA Impact (Block) Copolymer Py-Gas  Export 400 KTPA Butadiene  Domestic Crude C 4  BASF/Lummus  Export 315 KTPA  100 KTPA Notes: Improved margins along the integration of the production value chain (1) LLDPE: Linear Low Density Polyethylene (2) HDPE: High Density Polyethylene 7

1. Company Profile 3. Project Updates 2. Operational & Financial Performance 4. Industry Outlook Strategic Location “Adjacent and interlinked with customer’s facilities (45 km Ethylene pipeline)”. CAP’s Petrochemical Complexes Rhone Poulenc SBL Sulfindo Adiusaha Sulfindo Adi. NAOH, CL 2 EDC, VCM Santa Fe Sulfindo Adi. PVC Redeco Showa Esterindo Styrene Monomer Plant Polychem Cont Carbon CB Puloampel- Capacity 340 ktpa Trans Bakrie Sintetikajaya Serang Risjad Brasali Indochlor Merak EPS, SAN Main Plant Multisidia Golden Key ABS  Main Plant Capacity (ktpa) – Buana Sulfindo Ethylene: 860 N Statomer PVC – Propylene: 470 Prointail – Py-Gas: 40 0 Unggul Indah AB PIPI PS and SBL – Mixed C4: 315 Mitsubishi Kasei – Polyethylene: 336 – TITAN PE Polypropylene: 480 Amoco Mitsui UAP  Butadiene Plant: 100 ktpa Cabot Dow Chemical Indonesia Siemens Air Liquide KS  On-Site Power Hoechst Cilegon ARCO PPG Polyprima PTA Polypet PET Asahimas Lautan Otsuka Dongjin Cilegon NSI Sriwie Anyer Main Plant Jetty New Toll Road CAP Pipeline Existing Road Existing customers with pipeline access 8

1. Company Profile 3. Project Updates 2. Operational & Financial Performance 4. Industry Outlook Loyal & Broad Customer Base  Diversified clientele. Top 10 Customers Top 10 Customer’s Sales Breakdown contribute 46% of revenues in 1H-2016. Total Net Revenues 1H-2016: US$882.1 million  Key Customers are loyal customers who have long term relationship. 46%  Convenience for customers who are directly 54% Top 10 Customer's Sales linked with pipes integrated with CAP's Others production facilities. Key Customers  Strong marketing and distribution platform with wide network serving ~300+ Customers.  Short delivery trend time resulting in pricing premium to market reference prices. 9

1. Company Profile 2. Operational & Financial Performance 3. Project Updates 4. Industry Outlook 10

1. Company Profile 3. Project Updates 4. Industry Outlook 2. Operational & Financial Performance Plan Utilization Rate (%) Ethylene Polyethylene, Polypropylene, Styrene Monomer, Butadiene Polyethylene Polypropylene Styrene Monomer Butadiene 99 99 94 95 95 94 93 93 92 91 88 80 80 79 79 76 74 69 57 47 2013 2014 2015 1H-16 2013 2014 2015 1H-16  Consistently achieved high utilization rate of above 90%.  Decline of utilization in 2015 was due to shutdowns in the 4th quarter for Tie-in work of the Cracker Expansion project. In addition, within the 85-day shutdowns period were also conducted a Turnaround Maintenance (TAM).  Post Expansion completion in Dec-2015, Cracker plant operates with new capacity of 860 KTA (up to 43%).  Butadiene Plant operates since Sept-2013. 11