Public Expose 2013 PT Chandra Asri Petrochemical Tbk Jakarta, 18 - PowerPoint PPT Presentation

Public Expose 2013 PT Chandra Asri Petrochemical Tbk Jakarta, 18 December 2013

Contents I. Company At a Glance II. Petrochemical Industry Updates III. Financial & Operational Performance IV. Strategic Initiatives 2

I. Company At a Glance 3

Company At a Glance (“CAP”)  The largest and integrated producer of Olefins and Polyolefin in Indonesia.  Owns the only Naphtha Cracker, Styrene Monomer, and Butadiene plant in Indonesia.  Manufactures chemicals and plastics that are used in a variety of everyday consumer and industrial products including packaging materials, containers, storage materials, tires, and others.  End-user consumer of plastic products amounted to 70% Integrated manufacture complex of CAP's total sales (30% from industrial markets).  Have unique position to capitalize the high growth prospects of petrochemical industry in Indonesia and the rising of consumers demand. Polypropylene plant Ethylene plant  Supported by strong majority Shareholders, Barito Pacific Group (65.20%)* and SCG Chemicals Co. Ltd. (30.12%) - ownership as of 30 Nov-2013 . Notes: (*) Including CAP ownership which are owned by Marigold Resources Pte. Ltd. and Magna Resources Corp. Pte. Ltd. Styrene Monomer plant Butadiene plant 4

CAP Vision & Mission VISION The Leading and Preferred Petrochemical Company in Indonesia Continue to grow and improve our leadership position through integration, development of human capital, and preferred MISSION partnership, in a sustainable manner that will contribute to the growth of Indonesia. 5

CAP Key Strengths 1 Diverse Product Portfolio 7 2 Solid & Experienced Management supported Integrated Business by Strong Commitment Operations from Shareholders 6 3 Loyal and Broad Strategic Location Customer Base 5 4 Stable and Flexible High Operating Rates Feedstock Supply 6

Diverse Product Portfolio 1 Net Revenue YTD Sept-2013: US$1,813 million 51% of Net Revenue 27% of Net Revenue 22% of Net Revenue Polyolefin Olefins Styrene Monomer Butadiene Net Revenue Net Revenue Net Revenue Operating 4Q-2013 YTD Sept-2013 : US$928 million YTD Sept-2013 : US$480 million YTD Sept-2013 : US$402 million Polyethylene Ethylene Propylene Polypropylene Py-Gas Mixed C 4 Established a JV between PBI and Michelin to build Synthetic Butadiene Rubber ("SBR") plant facility. 7

Integrated Business Operations 2 Vertically integrated business operations resulting in higher efficiency and lower costs. Crude Oil Exploration Production Refining LPG Gasoline Naphtha Diesel Kerosene Marketing Refining Petrochemicals Upstream Naphtha Cracker Ethylene Propylene Py-Gas Mixed C4 Petrochemicals Midstream Styrene Monomer Butadiene Raffinate - 1 New generation Petrochemicals Synthetic Rubber HDPE Polypropylene Downstream LLDPE Products produced by CAP Construction starts in 2015 8

Strategic Location 3 Adjacent and interlinked with Customer's Facilities. 9

Stable and Flexible Feedstock Supply 4 Feedstock Overview Naphtha Purchases: Spot vs. Contract • 28% Various feedstock can be used for Cracker, 30% 33% 47% including: Naphtha › LPG › 72% 70% 67% 53% Condensates › • Long-standing and stable relationships with our YTD Sept-2013 suppliers. 2010 2011 2012 3Q 2013 Contract purchase Spot purchase • No material interruptions to deliveries of own feedstock over the last five years. Key Feedstock Source YTD Sept-2013 • Combination of supply arrangements and spot Benzene 100% purchases provide flexibility. • Diverse set of Naphtha suppliers: no single Propylene 37% 63% supplier dependence. Trading Companies in Singapore and › Ethylene 100% Malaysia. Direct purchases from refineries . › Naphtha/LPG 100% 0% 20% 40% 60% 80% 100% 10 Externally sourced Internally sourced

High Operating Rates 5 CAP continued to achieve high capacity utilization rates, mainly due to robust demand from the domestic market in Indonesia which is a net petrochemical importing country and focusing on energy yield and efficiency improvements. CAP Utilization Rates Ethylene Polyethylene, Polypropylene, Styrene Monomer 2011: 45- day planned shutdown maintenance year in Oct-Nov 105% 97% 102% 95% 100% 96% 96% 89% 92% 91% 90% 90% 89% 89% 78% 76% YTD Sept-2013 YTD Sept-2013 2010 2011 2012 Q3 2013 2010 2011 2012 Q3 2013 Polyethylene Polypropylene Styrene Monomer 11

Loyal and Broad Customer Base 6  Diversified clientele with Top 10 Customers Top 10 Customer’s Sales Breakdown accounting for only 38% of revenues in YTD Net Revenue CAP – YTD Sept-2013: US$ 1,813 million Total Pendapatan Bersih CAP – YTD 2013: US$1.813 juta 2013. Top 10 Customers's  Solid and long term relationships with key 38% sales Customers. 62% Others  Customers integrated with CAP production facilities via CAP’s pipeline. Selected Key Customers  Strong marketing and distribution platform with wide network serving ~300+ Customers.  Short delivery trend time and historically commanded pricing premium to benchmark prices. 12

Solid and Experienced Management 7 Board of Commissioners George Allister Agus Salim Loeki Cholanat Tan Ek Kia Hanadi Rahardja Chaovalit Ekabut Lefroy Pangestu Sundjaja Putera Yanaranop Board of Directors Erwin Ciputra President Director Paramate Raymond Terry Lim Chong Suryandi Baritono Paisan Nisagornsen Budhin Thian Director Pangestu Lekskulchai Vice President Vice President Director Director Director Director Director 13

Strong Commitment from Shareholders 7 Shareholding Structure – per 30 Nov 2013 Public 30.12% 4.67% 65.20% (*) Barito Pacific Siam Cement Group  An Indonesian-based business group headquartered  Thailand’s largest industrial conglomerate and Asia’s in Jakarta. leading chemicals producer.  Engaged in a diversified range of business, including  Invested in CAP in 2011 through acquiring 30% of CAP petrochemical, property, and palm plantations. from Barito Pacific and Temasek.  Listed on IDX since 1993.  Long-term Shareholder with substantial experience  Majority Shareholder is Prajogo Pangestu. and expertise in petrochemicals committed to supporting the development of the business. Notes: (*) Including CAP ownership which are owned by Marigold Resources Pte. Ltd. and Magna Resources Corp. Pte. Ltd. 14

II. Petrochemicals Industry Updates 15

Strong Demand Growth in Indonesia Demand of petrochemical products will remain strong in several periods ahead. Petrochemical products are fundamental to production of a wide variety of consumer and industrial products, such as packaging materials, containers, and storage materials. Total Demand Growth End Markets CAGR (2013 – 2019)F  Indonesia Global Plastic films  Containers 5,0% Polyethylene  Bottles 4,6%  Plastic bags  Packaging  Films and sheets 5,1%  Polypropylene Fibers and filaments 4,7%  Toys  Automotive parts  Drinks cups 5,6% Styrene  Food containers 3,0%  Monomer Car interiors  Helmet padding  4,3% Vehicle tires Butadiene  Synthetic rubber 3,1%  Gloves and footwear Source: Nexant , Sep 2013 16

Dominant Market Positions in Indonesia Retains its dominant position as market leader in many categories of petrochemical products in Indonesia. The only producer of Ethylene, Styrene Monomer, and Butadiene. Largest Petrochemical Company in Indonesia (1) Top 10 Largest Polyolefins Producers in South East Asia 1 Ethylene (2012) Polyethylene (2012) Import Import 53% CAP 27% 31% CAP 47% Others 42% 6 Total Demand: 1.28 million ton Total Demand: 1.06 million ton Polypropylene (2012) Styrene Monomer (2012) CAP 29% Import 45% CAP 100% Others 26% Total Demand: 1.66 million ton Total Demand: 0.16 million ton Source: Nexant, Sep 2013 Source: Nexant, Sep 2013 17 Notes: (1) Exclude fertilizer producers

III. Financial & Operational Performance 18

Trend of Sales and Production Volume Ethylene (1) Polyethylene KT KT Sales Vol Production Vol Sales Vol Production Vol 600 600 450 450 300 567 300 531 468 436 150 325 330 337 322 150 293 284 234 230 181 129 120 155 - - YTD Sept-2013 YTD Sept-2013 2010 2011 2012 Q3 2013 2010 2011 2012 Q3 2013 Styrene Monomer Polypropylene Sales Vol Production Vol KT KT Sales Vol Production Vol 600 600 450 450 300 300 458 461 416 410 382 380 345 343 150 322 305 309 150 302 259 254 238 234 - - YTD Sept-2013 2010 2011 2012 Q3 2013 YTD Sept-2013 2010 2011 2012 Q3 2013 Note: (1) The additional ethylene produced is consumed internally to produce polyethylene.