2018 brpt public expose final aua - barito pacific relations...t } o o w v 3rzhu...
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PT Barito Pacific Tbk[IDX: BRPT]
Public Expose 201828 November 2018
Contents
Company Overview
2018 Business Highlights
9M-2018 Consolidated Financial and Operation Performance
Growth Strategy
2
Company Overview
3
Barito Pacific Profile
Barito Pacific is a publicly listed company since 1993. It has now transformed
into an integrated energy company with multiple power and industrial assets
Barito Pacific owns a controlling share in PT Chandra Asri Petrochemical Tbk,
Indonesia’s largest and only integrated petrochemical company
Barito Pacific also owns a controlling share in Star Energy, the largest
geothermal company in Indonesia and the third largest geothermal company
in the world
Along with Indonesia Power, a subsidiary of PLN, Barito Pacific is developing
Java 9 & 10, a 2 x 1,000MW Ultra Super-critical class power plant, one of the
most energy efficient and environmentally friendly coal technology in the
market.
4
Current Organization Structure
PT Griya Idola
Property and Others
100.00%
Wisma Barito Pacific office complex in Jakarta
Integrated industrial park: 60 ha
Wisma Barito Pacific 2 (expected completion: 2Q 2020)
Hotel Mambruk Anyer
46.26%
PT Chandra Asri Petrochemical Tbk
Petrochemicals
Domestic market share (including imports) of approximately 52% and 27% in olefin and polyolefins, respectively(1)
Market capitalization of c.US$5.7bn as at 31 Oct 2018
Energy
PT Indo Raya Tenaga
2,000 MW ultra supercritical coal-fired power project (scheduled COD in 2023)
Consortium with PLN
PT Barito Pacific Tbk (“Barito Pacific”)
49.00%
Star Energy Group Holding Pte Ltd
875 MW Geothermal Power Plant (The largest operator in Indonesia and Number 3 in the world
Long-term offtake contract agreement with Pertamina and PLN with average contract period of 24 years (from 2017)
66.67%
5
(1) For the year ended 31 December 2016 according to Nexant; polyolefin market share based on combined figures of polyethylene and polypropylene
As of 31 October 2018
World Class Partners
6
Petrochemicals BusinessPower Business
Partners Partners
Reputable Suppliers & Customers
■ Largest supplier of naphtha feedstock to CAP, accounting for 23.1% of total supply in 2017
■ Key supplier of naphtha feedstock to CAP, accounting for 17.8% of total supply in 2017
■ Acquired 30% stake in CAP in 2011■ Currently owns a 30.57% stake in CAP■ Sharing of technical and operational expertise■ Access to Thai financial institutions
■ Key customer / offtaker of ethylene from CAP
■ Key customers of CAP
■ Partner to CAP in the Synthetic Rubber JV (45% held by CAP(1) and 55% held by Michelin)
Strong support from world class partners is a testament to the quality of Barito Pacific’s assets
■ Recently partnered with Barito Pacific in the development of Java 9 & 10, a 2 x 1,000 MW ultra supercritical coal-fired power project
■ Acquired 33.33% stake in Star Energy for a total consideration of US$357m in July 2017
■ Partnered with Star Energy on the acquisition of Salak and Darajat geothermal assets from Chevron on 31 March 2017
■ Partnered with Star Energy on the acquisition of Salak and Darajat geothermal assets from Chevron in April 2017
■ Acquired 20.00% stake in Wayang Windu in 2012
■ Partnered with Star Energy on the acquisition of Salak and Darajat geothermal assets from Chevron in April 2017
■ Acquired 20.00% stake in Wayang Windu in 2014
■ Star Energy’s counterpart under the Joint Operation Contract basis to develop geothermal fields in Indonesia
■ PLN has been an offtaker of Star Energy since 1994
Customers & Counterparts
Barito Pacific Management
7
Agus Salim Pangestu President Director
23 years in industry21 years with Barito Pacific
Rudy SuparmanVice President Director
31 years in industry1 year with Barito Pacific
Andry SetiawanDirector
15 years in industryAppointed in April 2018
David KosasihIndependent Director
7 years in industryAppointed in April 2018
Board of Directors
2018 Business Highlights
8
2018 Business Highlights Barito Pacific
Completed Rp8.9 trillion Rights Issue and successfully acquired 66.67% ownership
interest in Star Energy Group Holdings Pte. Ltd (Star Energy) on 7 June 2018.
Successfully extended the tenure of its US$250m term loan with Bangkok Bank for
another 12 months (due in September 2019).
Recently obtained new US$175m term loan facility (with Greenshoe option of
US$25m) from DBS and Barclays, to refinance Bangkok Bank loan.
Declared US$30m dividend (25.4% of 2017 net income attributable to owners of the
company) paid in July 2018 @ Rp24.43/share.
Groundbreaking of Wisma Barito Pacific 2 that is expected to be completed in 2Q-
2019, through PT Griya Idola.
Completed sale of PT Royal Indo Mandiri’s 95% ownership in plantation for
US$67.9m.
Appointed David Kosasih and Andry Setiawan, as the new Directors of the company,
at the same time accepted the resignations of Henky Susanto and Salwati Agustina
from the BoD.9
2018 Business Highlights PT Chandra Asri Petrochemical Tbk (CAP)
Completed its Butadiene Plant expansion to 137ktpa (up by 37%) in June 2018.
Awarded 6 License and engineering design agreements to world-class licensors for
its new petrochemical complex (CAP 2).
Awarded EPC to Toyo Engineering Group for its new MTBE (127ktpa) and Butene-1
(43ktpa) plants that are expected to commercially operate in 3Q-2020.
Achieved mechanical completion of PT Synthetic Rubber Indonesia, JV with Michelin.
The first plant in Indonesia to produce the feedstock of environmentally-friendly tire,
using Michelin’s proprietary technology.
Inaugurated Plastic Asphalt Road as a form of support to the Government’s target to
reduce plastic waste to 70% by 2025.
Issued Shelf Registration Bonds I Phase II - Rp500bn (~US$36.3m) in March 2018 to
prepaid the US$94.98m term loan and for working capital.
Signed US$120m working capital facility agreement with Bank Mandiri.
10
2018 Business Highlights
Star Energy
Issued 15-year US$580m Green Bond in April 2018 with coupon rate of 6.75% to
refinanced the US$660m Wayang Windu term loan.
Repaid amortizing loan principal of Salak and Darajat totalling US$52.5m for 9M-
2018.
11
9M-2018 Consolidated Financial and Operation Performance
12
9M-2018 Consolidated Financial PerformanceAs Restated
9M-2018 9M-2017 % Change 9M- 2017Net Revenues 2,357 1,823 29.3% 2,101
CAP 1,962 1,798 9.1% 1,798 Star Energy 391 - 0.0% 294 Others 4 25 -84.0% 9
Cost of Revenues 1,696 1,402 21.0% 1,441 Gross Profit 661 421 57.0% 660 Finance Costs 159 42 278.6% 106 Net Income After Tax 217 220 -1.3% 286 Attributable to:
Owners of the company 70 96 -27.1% 121 Non-controlling interests 147 124 18.5% 165
EBITDA 635 432 47.0% 682 Gross Profit Margin (%) 28.0 23.1 21.2% 31.4 EBITDA Margin (%) 26.9 23.7 13.5% 32.5 Debt to Capital (%) 47.7 24.7 93.1% 48.1 Debt to EBITDA (x) - LTM 2.90x 1.20x 141.7% 2.70x Net Debt to EBITDA (x) - LTM 1.90x net cash 0.0% 1.90x
As Restated9M-2018 FY-2017 % Change FY-2017
Cash Balance 827 881 -6.1% 906 Total Debt 2,482 913 171.8% 2,629 Net Debt 1,655 32 5071.9% 1,723
As Previously Reported
As Previously Reported
Note: To better understand geothermal contribution to BRPT 9M-2018, management is using the comparison between the9M-2018 vs 9M-2017
13
9M-2018 Consolidated Financial Profile
3,060; 45%
3,262; 48%
430; 7% Assets
581; 23%
1,650; 67%
251; 10%
Total Debt
1,962; 83%
391; 17%
4; 0%Net Revenues
339; 52%305; 47%
-9; -1%EBITDA
Amounts in US$m
14
Petrochemical
15
Chandra Asri Petrochemical at a Glance
16
Market leader in highly attractive Indonesia and SE Asia petrochemical market
◦ Domestic market share (including imports) of approximately 52% and 27% in olefin and polyolefins, respectively
3.4 mtpa of existing production capacity
Integration from upstream cracker to downstream polyolefin products
Strategically located near key customers with a captive distribution network
◦ Significant cost efficiencies for CAP and its key customers
Long-standing relationships with diversified customer base
◦ No single customer accounts for more than 8% of consolidated revenue
◦ Most customers produce for the domestic market and not for export
CAP’s main integrated manufacturing complex
Low production cost base and operating efficiencies
◦ Benefits from scale of feedstock sourcing and stable supplier relationships
Transformed in 2016 following the 4Q 2015 naphtha cracker expansion, resulting in significant EBITDA growth, reinforced balance sheet and a more diversified product mix
Support from Barito Pacific Group and Siam Cement Group (“SCG”)
◦ Barito Pacific’s stake in CAP: 46.26%
◦ SCG’s stake in CAP: 30.57%
Vital National Object status
Track Record of Successful Growth
17
CAP
EBITDA
1992
TP
IC
A
1992
Started commercial production of polypropylene comprising annual capacity of 160 ktpa
1993
1993
Increased capacity of polypropylene plant to 240 ktpa
1995
1995
Increased capacity of polypropylene plant to 360 ktpa
2009
2009
Increased capacity of polypropylene plant to 480 ktpa
1995
Commercial production begins at CAP with initial cracker capacity of 520 ktpa
2004
2004
Product expansion through selling of Mixed C4
2007
2007
Added a furnace at its naphtha cracker to increase ethylene production to 600 ktpa, propylene production to 320 ktpa, pygas production to 280 ktpa and mixed C4 production to 220 ktpa
Acquisition of 100% shares of SMI
2010
2010
Issued inaugural 5-year US$230m Bond
2011
2015
2016
2015
Completed cracker expansion project and TAM
2013
Strategic partnership in the synthetic rubber business with Michelin to establish PT Synthetic Rubber Indonesia
Commenced operations of our butadiene plant with a nameplate capacity of 100 ktpa
Secured funding for cracker expansion:
− Limited public offering of shares with pre-emptive rights of approximately US$127.9m in the IDX
2011
Merger of CA and TPI effective from 1 January 2011
Completed de-bottlenecking to raise polypropylene capacity to 480 ktpa
SCG Chemicals acquired 23.0% of Company from Apleton Investments Limited, a wholly-owned subsidiary of Temasek Holdings (Private) Limited, and 7.0% from Barito Pacific
2015
155m
2016
510m
2017
550m(US$)
2016
Issued CAP IDR Bond I –2016
Received upgraded corporate rating from Moody’s from B2 to B1
Revised rating outlook from S&P from Stable to Positive B+.
Received idA+ rating from Pefindo
2017
2013
2017
Upgrade of long-term corporate credit rating from B1 to Ba3 by Moody's
Completed rights issue of approximately US$377m
Issued US$300m 7NC4 bond
Issued CAP IDR Bond II –2017
Obtained long-term credit rating of BB-Stable from Fitch.
Track record of achieving operational and structured growth
Sept 2018
337m
2018
Issued CAP I Phase II Bonds 2018
Maintained rating from Pefindo idAA-
S&P revised CAP Global Bond outlook to Stable
Completed debottlenecking of Butadiene plant to 137 ktpa
New Synthetic Rubber Plant of 120 ktpa on stream (JV with Michelin).
2018
Integrated Production of Diverse Products
18
Ethylene (860)
Propylene (470)
PyrolysisGasoline (400)
Mixed C4 (315)
Polypropylene (480)
Naphtha consumption of 2,450 ktpa at full capacity
Polyethylene (336)
Styrene Monomer (340)
Naphtha
Co-generation plants
Utilities & facilities
Water
facilitiesJetty facilities
Support facilities
Butadiene (100)
(ktpa)
Merchant market (430)
Capacity
Capacity (ktpa) Use of Goods (examples)
CAP’s products encompass a wide range across the consumer products value-chain, and its leading position and strategic location enhances its competitiveness
Strategically Located to Supply Key Customers
19
Cilegon
Merak
Jetty CAP PipelineToll Road Road
Puloampel-
Serang
Styrene Monomer Plant
Capacity 340 ktpa
Sriwie
DongjinLautan Otsuka
AsahimasPolypet PET
Polyprima PTAARCO PPG
Amoco MitsuiTITAN PE
Mitsubishi KaseiPIPI PS and SBL
Unggul Indah ABProintail
Statomer PVCBuana Sulfindo
Santa Fe
Rhone Poulenc SBLSulfindo Adiusaha
NAOH, CL2
Golden Key ABSMultisidia
Risjad BrasaliEPS, SAN
Trans BakrieCont Carbon CB
Indochlor
Sintetikajaya
Showa EsterindoSulfindo Adi. PVC
Polychem
Redeco
Cabot
Siemens
Hoechst
KS
Dow Chemical
Air Liquide
UAP
Customers with pipeline access
NSI
Sulfindo Adi. EDC, VCM
Indonesia
Cilegon
Integrated ComplexAnyer
NIntegrated Complex
Main Plant Capacity (ktpa)
− Ethylene: 860
− Propylene: 470
− Py-Gas: 400
− Mixed C4: 315
− Polyethylene: 336
− Polypropylene: 480
Butadiene Plant: 137 ktpa
On-Site Power
Jakarta
Location proximity and well established pipeline ensures excellent connectivity to key customers. This coupled with reliability of supply lead to premium pricing, with integration of facilities creating significant barriers to entry
Market Leading Positions - Petrochemical
20
CAP52%
Pertamina24%
Import24%
CAP27%
LCT14%
Polytama8%
Pertamina2%
Import49%
Olefin producers in Indonesia Polyolefin producers in Indonesia (1)
2.6 mtpa 3.0 mtpa
largest Olefin producer in Southeast Asia7 largest Polyolefin producer in Southeast Asia6
largest Olefin producer in Indonesia1 largest Polyolefin producer in Indonesia1
2016 Olefin Supply in Indonesia 2016 Polyolefin Supply in Indonesia
Source: Nexant(1) Based on combined figures of polyethylene and polypropylene
Strong Operating Performance
Cracker Polyethylene
Polypropylene Styrene Monomer Butadiene
Product 9M17 (KT)
9M18 (KT) YoY Δ%
Ethylene 636 624 (1.9%)
PE 232 259 11.6%
PP 339 392 15.6%
SM 266 225 (15.4%)
BD 87 62 (28.7%)
Production Volume
Planned shutdown (Mar-May) for
expansion tie-ins
Maintained high operating rates. Butadiene planned shutdown for expansion tie-ins
99% 97%
9M-2017 9M-2018
92%103%
9M-2017 9M-2018
94%
109%
9M-2017 9M-2018
104%
88%
9M-2017 9M-2018
116%
71%
9M-2017 9M-2018
21
Energy
22
Star Energy at a Glance
23
Operating assets
Sukabumi Regency and Bogor Regency, West Java
377 MW total installed capacity Units 1 to 3 (Steam): 3 x 60 MW(1)
Units 4 to 6 (Power): 3 x 65.6 MW SEGHPL effective ownership: 51.95% Acquired from Chevron on 31 March 2017
Salak
Garut Regency and Bandung Regency, West Java
271 MW total installed capacity Unit 1 (Steam): 55 MW Unit 2 (Power): 95 MW Unit 3 (Power): 121 MW
SEGHPL effective ownership: 51.95% Acquired from Chevron on 31 March 2017
and from PT DGI on 27 September 2017
Darajat
Bandung Regency, West Java 227 MW total installed capacity
Unit 1 (Power): 110 MW Unit 2 (Power): 117 MW
SEGHPL effective ownership: 60.00% Tariff increase of US¢3.11/kWh effective
April 2016
Wayang Windu
Exploration projects
Both PT Star Energy Geothermal Suoh Sekincau and PT Star Energy Geothermal Indonesia have completed the preliminary survey (“PSP”) and have right to match the best tender offer for the license to develop the resource area
The third largest geothermal IPP globally and the largest in Indonesia(2)
(1) While contractual capacity is 55 MW, Star Energy generally provides steam flow up to 60 MW (2) Based on 2017 installed capacity, according to Frost & Sullivan
24
Geothermal Energy Producers in Indonesia Top Geothermal Energy Producers Globally
1
largest geothermal energy producer in Indonesia1 largest geothermal energy producer globally3
3
2017 Installed Capacity (MW) 2017 Installed Capacity (MW)
Source: Frost & Sullivan, company websites, company filings
Listed Southeast Asia IPPs with Geothermal Exposure
EDC
PhilippinesVivant Corp
Philippines
Phinma Energy
Philippines
BCPG
Thailand
First Gen
Philippines
Aboitiz Power
Philippines EGCO
Thailand
Market Leading Positions - Geothermal
875
617
220
120
1,169
899 875 874
725
Stable Cash Flows from Geothermal Business
25
Long-term offtake agreements with state-owned enterprises (PLN and Pertamina)
Capacity contracted on take-or-pay basis:
Wayang Windu: 95.0%
Darajat: 80.0% (Unit 1); 95.0% (Units 2 and 3)
Salak: 95.06% (Units 1 to 3); 90.14% (Units 4 to 6)
Tariffs protected against macroeconomic risks
FX risk: Capacity payment tariffs denominated in USD
Inflation risk: O&M portion of tariffs adjusted for Indonesia and US inflation
Cost inflation risk: Tariffs adjusted for machinery and tools inflation
Current contracts have a capacity weighted average remaining term of ~24 years
PLN
Remaining Contract Life by Asset (years)
Stable cash flows underpinned by long-term take-or-pay offtake agreements from the geothermal business will provide a cushion against the cyclical nature of the petrochemical business
2223
27
Wayang Windu Salak Darajat(1)
(1) Capacity-weighted based on Unit 1 and Unit 2 remaining contract life of 24 years and Unit 3 remaining contract life of 30 years
Strong Operating Performance
Net Dispatch (G1)
1,925 1,910
1,420
FY-2016 FY-2017 9M-2018
165 182
136
FY-2016 FY-2017 9M-2018
Revenue (US$m)
1,405 1,3441,089
1,521 1,561
1,187
FY-2016 FY-2017 9M-2018
Units 1-3 Units 4-6
195 194
149
FY-2016 FY-2017 9M-2018
SalakWayang WinduNet Dispatch (GWh) Net Dispatch (GWh) (1)
Darajat
381 41891
1,699 1,682
1,325
FY-2016 FY-2017 9M-2018
Unit 1 Units 2-3
Revenue (US$m) Revenue (US$m)
132 135
105
FY-2016 FY-2017 9M-2018
(1) Darajat Unit 1 power plant is operated by PT Indonesia Power, a subsidiary of PLN. There were 3.5 days unplanned shutdown in January 2018 and has been shutdown since 18 March 2018 due to high vibration and back to commercial operation on 30 September 2018.
26
Growth Strategy
27
Growth StrategyGrowth Factors Development Opportunities
Low electricity consumption per capita in Indonesia as
compared to other ASEAN countries; headroom for rapid
growth
Government development plan to increase electrification
ratio
Significant growth in coal power and geothermal power
capacity required, of which majority is allocated to IPPs
Star Energy will focus on renewable energy opportunities
Further expansion of existing operational geothermal
projects.
Development of current exploration assets in
Indonesia – Hamiding & South Sekincau.
Greenfield or brownfield renewable energy
opportunities in Indonesia and outside.
Diversification into coal-fired power generation
Indonesia only
2 x 1,000 MW ultra supercritical coal-fired power plant
(Java 9 & 10) in partnership with Indonesia Power, a
subsidiary of PLN
Rising population and median incomes to drive consumer
spending and GDP growth in Indonesia
Strong domestic demand for petrochemical products and
basic chemicals
Increase production capacity, expand product offering and
further optimize integration
Improve operational efficiency
28
Strategic Growth via Expansion and Debottlenecking (Excluding 2nd Petrochem Complex)
29
157
510
233
3,301 3,458
3,968 4,201 4,201
2017 2018 2019 2020 2020
(KT / A)
2016 – 2020 CAGR: 6.2%
BD: ∆37KT
C2: ∆40KT
C3: ∆20KT
MTBE: ∆130KT
B1: ∆43KT
BD expansion & SSBR operation
C2, C3, MTBE and Butene-1
PE: ∆400KT
PP: ∆110KT
PE expansion& PP
Debotlenecking
After doubling the size of production capacity over historical 10 years, the expected further growth in the next 5 years will come from several expansion & debottlenecking initiatives.
Note: SSBR – Solution Styrene Butadiene RubberBD Expansion - Butadiene Plant Expansion
PE - PolyethylenePP – Polypropylene
MTBE - Methyl tert-butyl ether C2 / C3 – Refers to furnace revamp
SSBR: ∆120KT
30
Strategic Growth via Expansion and Debottlenecking
ScheduleCAPEX (US$m)
Funding Status
Capacity Increase
Cumulative CapacityProject Description Start Proposed
Start up
Current Production Capacity 3,301 KT/A
Butadiene Plant Expansion 2Q – 2017 2Q – 2018 42.0 Fully Funded 37 KT/A 37 KT/A
Synthetic Rubber Project (through SRI JV) 4Q – 2015 3Q – 2018 570.0 Fully Funded 120 KT/A 120 KT/A
Production Capacity at the end of 2018 3,458 KT/A
PP Debottlenecking 4Q - 17 3Q – 2019 39.5 Fully Funded 110 KT/A 110 KT/A
New Polyethylene Plant 1Q – 2018 4Q – 2019 380.0 Fully Funded 400 KT/A 400 KT/A
Production Capacity at the end of 2019 3,968 KT/A
Furnace Revamp 3Q – 2018 1Q – 2020 48.0 Fully Funded 40 KT/A C2; 20 KT/A C3
60 KT/A
MTBE and Butene – 1 Plant Not yet started 3Q – 2020 114.0 Fully Funded 130 KT/A MTBE;
43 KT/A B1173 KT/A
Production Capacity at the end of 2020 4,201 KT/A
Completed
31
Wayang Windu Unit 3 Expansion Potential Potential for Unit 3, scaling up gross power generation by up to 60 MW
Expansion aimed at enhancing competitiveness, given growing demand, cost competitiveness and underutilized offtake agreement
Star Energy has extensive experience and efficient business processes to identify optimal growth strategy and maximize upside while limiting capex
Decision on Unit 3 to depend on the outcome of initial exploration drilling programs and returns generated from the capex
Significant upside from Resource Availability
GeothermEx estimates Wayang Windu geothermal energy reserves going forward are sufficient to sustain current generation of Unit 1 & 2 at or near 227 MW gross, with sufficient reserves to support output at 280 MW for 30 years and at 390 MW for 20 years
Potential to add up to 60 MW through Unit 3, increasing installed capacity to up to 287 MW
Capital expenditure could be in excess of US$120m, and depends on outcome of drilling program in 2018 – 2021
Star Energy already has the exclusive rights to the geothermal development of the land that contains the resources
Strong Past Track Record provides Confidence for Future Expansion
Have past experience of over 2 decades of dealing with the regulators and local communities
Experience in successfully drilling wells for Units 1 and 2
Timely completion of drilling programs with Unit 2 having started operations 14 days ahead of schedule
Star Energy employs reputed and experienced drilling contractors and consultants
Star Energy employs experienced suppliers and contractors for the plant construction
Star Energy will utilize a third party geothermal consultant of international standing to confirm the existence of sufficient geothermal resources in the Wayang Windu area to support any expanded generation capacity for a period of no less than 20 years before incurring any capital expenditures for new geothermal units.
32
Geothermal Development Projects
Salak Binary
Proposed Start-up: 2021
15 MW capacity
Development stage: feasibility studies
Salak Unit 7
Proposed Start-up: 2023
55 MW power generation capacity
Development stage: feasibility studies
Salak Expansion Geothermal Exploration
Sekincau
Located in West Lampung, Sumatera
Right to match the best tender offer for the license to develop the resource area
Development stage: preliminary survey & exploration
Kota Agung
Bandar Lampung
Kotabumi
Sekincau
Hamiding
Located in North Halmahera, Maluku
Right to match the best tender offer for the license to develop the resource area
Development stage: preliminary survey & exploration
Tobelo
Hamiding
Sofifi
TernateSindangoli
Supu
Pandanga
33
Java 9 & 10 Power ProjectProject Timeline
Project Ownership
Description
2,000 MW (2 x 1,000 MW) ultra supercritical coal-fired power project developed under a BOOT scheme
Located in Suralaya, Banten province
The site is located in close proximity to CAP’s integrated petrochemical complex in Cilegon
Land for the project has already been secured and currently undergoing initial site preparations
The project, which is targeted to commence operations in 2023, is at an advanced development stage
Conditional PPA with PLN signed in June 2017
Under the Java 9 & 10 PPA, the project is contracted to PLN for 25 years
PLN takes fuel supply risk with relation to the project
Furthermore, PLN purchases the project power capacity on a take-or-pay basis, such that the project bears no dispatch risk
Project sponsors intend to enter into a turnkey fixed price EPC contract with a reputable, experienced EPC contractor
Total project cost budgeted at US$3.1 billion
The Java 9 & 10 project will be financed by a competitive long-term limited recourse project financing on a 70:30 debt-to-equity ratio basis, in line with precedent Indonesian power projects
Financial close targeted for 1H 2019
1H 2024: Unit 2 targeted COD
June 2017: Conditional PPA with PLN signed
1H 2018: EPC contractor selection 2H 2018:
EPC contract signing
1H 2019: Financial close + notice to proceed
2H 2023: Unit 1 targeted COD
(1) Held indirectly though PT Barito Wahana Lestari(2) Java 9 & 10 project company
Project Finance
Debt
EPC Contract
100% Govt.
Owned
51%
EPC Contractor
(TBD)
PT Indo Raya Tenaga (1)
49%1
Project Financing
(TBD)
100%
PPA
Electricity
Coal
Appendix
34
CAP 2 Project Master Schedule
35
Gate 3: 4Q - 2019Gate 1: Sep - 2017
Cap 2 Concept
1. Complex Configuration
2. Feed Design Basis
3. Preliminary Investment
1. Prelim project return
2. Technology Award
4. License/ BEP/ PDP
5. FEED ITB
1. FEED
2. AMDAL
3. Bankability Report
4. EPC ITB
1. EPC Bidding
2. Final TIC
3. Investment Return Report
4. Firmed Funding Plan
5. Permits
1. EPC Work
2. Financial Close
3.Commissioning
4. Startup
Stage 0 Stage 1 Stage 2 Stage 3 Stage 4
Gate 2: 1Q - 2019 Gate 4: 2Q - 2020
1. Prelim project return2. Technology Award3. Appoint FA
We are here… • Budget Approval for land/ FEED/ AMDAL/ ITB (170 + MUSD) • FID Approval
CAP 2 Progress…• Investment license granted and preparing to apply for income tax holiday at
least 20 years.• Completed technology selection• Developing basic engineering designs which will be completed by December
2018 (current progress: 80%)• Awarded Technology Licensors and Basic Design Package in April 2018
36
Production Plant Licensor
Olefins(1.1 MMTA C2) • Lummus
Butadiene(160 KTA BD) • BASF/ Lummus
Aromatics(335 KTA BZ, 220 KTA TL, 243 KTA MX) • GTC
Production Plant Licensor
HDPE(450KTA) • Texplore
LDPE(300 KTA) • Lyondellbasell
PP(450 KTA) • Lyondellbasell
• Selected HSBC as financial advisor.• Developing bankability study report which will be completed by March 2019.
High-density polyethylene (450)
Low-density polyethylene (300)
Polypropylene (450)
Butadiene (160)
Benzene (335)
Capacity (KTA)
Toluene (220)
Mixed Xylenes (243)
Merchant (260)
CAP1 & Merchant
(140)
SMI (270) & Merchant
Propylene (600)
Mixed C4 (400)
Capacity (KTA)
Ethylene (1,100)
Pyrolysis Gasoline (900)
Est. Flow (KTA)
Naphtha(2,800)
Propane(Flexible up
to 70%)
CAP1 Pygas(440)
Est. Flow (KTA)
CAP 2 Product flows and production capacities
37
38
Thank You
Office address: Contact: PT Barito Pacific Tbk Investor Relations /Corporate SecretaryWisma Barito Pacific Tower B, Fl. 8 Email: [email protected]. Letjen. S. Parman Kav. 62-63 [email protected] 11410 Telp: +62 21 530 6711
Visit our website at www.barito-pacific.co.id
Disclaimer: This document was prepared solely and exclusively for the parties presently being invited for the purpose ofdiscussion. Neither this document nor any of its content may be reproduced, disclosed or used without the prior written consentof PT Barito Pacific Tbk. This document may contain statements that convey furute oriented expectations which represents theCompany’s present views on the probably future events and financial plans. Such views are presented on the basis of currentassumptions, are exposed to various risks and are subject to considerable changes at any time. Actual results can be differentfrom the projection.
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