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Corporate Presentation

November 2010

Best Company In
Indonesia for Corporate
Governance Asia’s Best Companies
2010 2010
Best Indonesian Small Indonesia’s Best
Cap Investor Relations
2009 & 2007 AKR & Sorini

OSK Asean Corporate Day 2011 Best Investor Relations


Officer
Fullerton Hotel, Singapore, 6-7 January 2011
2008
Who We Are
Brief overview Stock data (as of 30/12/10)
• Established in 1960, AKR Corporindo is • Bloomberg Code : AKRA:IJ
Indonesia’s largest private distributor of basic
chemicals and petroleum with integrated • Market Cap (US$ mn) : 730
network across the country. • Issued Shares (mn) : 3,792
• Operates in 9 sea ports and 11 river ports in • Major Shareholders (%)
two major Asia economic Indonesia & China
• PT Arthakencana Rayatama : 59.2
• AKR listed in Jakarta Stock Exchange in 1994
• Others : 40.8

50 years growing with the nation


 Built tank and  1st private  Awarded right to
 Chemical  Signed JV with
warehouse company to distribute subsidized
business is Royal Vopak to
facilities. Built import & fuel in 2010.
founded in build 450,000 tank
first 5,000 MT distributed
Surabaya terminal  Acquired coal mining.
sorbitol plant unsubsidized fuel

1960’s 1970’s 1980’s 1990’s 2005 2006 2007 2008 2009 2010

 Trading business  Listed in JSX. Built 2nd  Acquired 5  Stagen 50,000 KL  Successfully conducted
is expanded sorbitol plant in java river ports in terminal rights issue II.
and China. Bulk terminal China commissioned.
operations expanded  Awarded right to
Acquired 1st fuel
distribute subsidized
vessel.
fuel in 2011

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 2


Strong Historical Performance

Steady Sales Growth Sustainable Net Profit Growth


(IDR b n) (IDR b n)
9,476
10,000 6% 8,960 300 275
9,000 R =2 8,538
24%
AG 250
R = 225
8,000
sC AG 210
7,000 6yr s C 191
6yr
5,895 200
6,000
5,000 3,970 150 119 128
4,000 2,828
3,000 100
2,000
50
1,000
0 0
2005 2006 2007 2008 2009 9M2010 2005 2006 2007 2008 2009 9M2010

Rising EBITDA Low Leverage (Net Debt/Equity)


(IDR b n) (x)
900 1.2 1.11
762 1.04
800 708 1.0
700
600 516 0.8 0.71
492 0.63
500
0.6
400 330
290 0.37
300 0.4 0.35

200
0.2
100
0 0.0
2005 2006 2007 2008 2009 9M2010 2005 2006 2007 2008 2009 9M 2010

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 3


Key Investment Highlights
• Leading petroleum and chemical distributor supported with integrated
infrastructure network
• Leading producer of Sorbitol & Starch Sweeteners with strong presence in
Asia Pacific & China Capitalizing large opportunity in Indonesia petroleum
market
• Capturing growth opportunities through strategic investment in infrastructure
and energy related sector
• Beneficiary of strong domestic consumer demand
• To focus and further strengthen its Petroleum and Chemicals Distribution and
Logistic Business in the coming years

Manufacturing Trading and Distribution Logistic


Indonesia China Chemicals Petroleum Indonesia China
• Petroleum tank terminal
• Sorbitol • Basic chemicals
• Bulk terminals – chemicals
• Starch sweeteners • Refined petroleum :
• Ports & terminal operator
• Tapioca starch • High Speed Diesel
• Stevedoring
• Cassava plantation • Fuel Oil
• Warehousing
• Wood adhesives • Industrial Diesel Oil
• Physical transportation

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 4


Update on Sorini Divestment
Transaction Update Number of Shares : 629,166,945 Shares
• On 15 December 2010, AKRA has Sales Price : Rp 3,500 per Share
entered into agreement (CSPA) to sell
629,166,945 shares of Sorini Proceeds (Net) : Rp 2,179 billion
(68.82%) to Cargill at Rp 3,500 per Or equivalent to : US$ 242 million
share.
Transaction Multiple* : - 27.5x 2010F P/E
• The completion of this deal is subject
to AKR shareholders approval in the - 14.5x 2010F EV/EBITDA
EGM which will be held on 26 January * Bloomberg Consensus’s EPS and EBITDA
2011
Rationale
• AKRA focus is now re-oriented towards fast growing energy, petroleum and chemical
distribution and logistics infrastructure
• This divestment of Sorini is at very attractive price, unlocking value of Sorini and will add
value to the shareholders by enabling to reinvest the proceeds of the divestment in these
focus businesses.

Use of Proceeds
• Strategic investment in an attractive and fast growing energy related sector.
• Further expansion in AKR core expertise in distribution business and logistic infrastructure
i.e. tank storage and logistic network to support future growth
• To exploit new market opportunities: Eastern Indonesia and other sectors
• To capture opportunities from subsidized fuel segment deregulation
PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 5
Impact of Sorini Divestment on AKR Financials
Pro Forma Financial Statement as of 31 December 2009
Income Statement Balance Sheet
Historical Adjustment Pro Forma Historical Adjustment Pro Forma
Revenues 8,959,842 - 8,959,842 Current Assets 2,694,116 1,674,873 4,368,989
Gross Profit 953,631 - 953,631 Cash or Cash Equivalents 273,694 (115,050) 158,644
Operating Profit 539,968 - 539,968 Proposed Transaction - 2,226,834 2,226,834
Other Income/Expenses (71,713) 1,760,216 1,688,504 Account Receivables 1,298,938 (138,672) 1,160,266
Pretax Income 468,256 1,760,216 2,228,472 Inventories 709,518 (246,119) 463,399
Tax Expenses (128,359) - (128,359) Others Current Assets 411,966 (52,120) 359,846
Net Income 274,719 1,760,216 2,034,935
Non Current Assets 3,364,954 (728,215) 2,636,740
Deferred Tax Assets 68,468 (25,680) 42,788
Fixed Assets 2,859,238 (676,027) 2,183,211
Others Non Current Assets 437,248 (26,508) 410,740
Key Important Date
Total Assets 6,059,070 946,658 7,005,729
• CSPA Date : 15 Dec 2010
Current Liabilities 2,810,284 (301,282) 2,509,002
• Announcement of EOGM : 27 Dec 2010 Account Payables 1,111,622 (56,753) 1,054,869
• Information Disclosure : 27 Dec 2010 Short-term Debt 1,256,353 (229,601) 1,026,752
• DPS Date : 10 Jan 2011 Other Current Liabilities 442,309 (14,928) 427,381
• Notice to the Shareholders : 11 Jan 2011
Non Current Liabilities 1,021,968 (156,531) 865,437
• EOGM : 26 Jan 2010
Long-term Debt 952,415 (126,439) 825,976
Other Long-term Liabilities 69,553 (30,092) 39,461

Total Liabilities 3,832,253 457,813 3,374,439


Minority Interest 485,757 (265,395) 220,362

Equity 1,741,060 1,669,867 3,410,927

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 6


Segmental Revenues and Gross Profit
Trading and Distribution’s contribution to AKR’s revenues and gross profit will
continue increasing

Segmental Revenue Contribution 9M10 vs. 2009

9M10 2009
Trading & Distribution 77% 75%
Manufacturing - Sorini 16% 16%
Manufacturing - Others 4% 5%
Logistic 3% 4%

Segmental Gross Profit Contribution 9M10 vs. 2009


9M10 2009
Trading & Distribution 33% 22%
Manufacturing - Sorini 38% 49%
Manufacturing - Others 15% 15%
Logistic 15% 15%

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 7


9M10 Volume Performance and 2010 Estimates

UOM 9M10A 2010E


Trading & Distribution
Chemical MT 950,691 1,133,495
Petroleum KL 826,828 1,314,989
Manufacturing
Indonesia MT 317,352 425,663
China MT 46,817 69,432
Logistic
Indonesia - Cargo/Others MT 5,376,498 7,070,865
Indonesia - Container TEUs 143,070 182,883
China - Cargo/Others MT 3,228,106 4,449,308
China - Container TEUs 33,142 47,313

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 8


Latest Award in Corporate Governance
• Asiamoney’s Corporate Governance Polls
for 2010, announced in December 2010,
ranked PT AKR Corporindo Tbk. as the
Best Company in Indonesia For Corporate
Governance.
• AKR swept ALL categories of the
Asiamoney Corporate Governance Polls
for 2010
• The management would like to thank all
the analysts and investors that voted AKR
as Indonesia’s best company for
corporate governance in Asiamoney’s
Corporate Governance Poll for 2010.

Best Company In
Indonesia for Corporate
Governance Asia’s Best Companies
2010 2010
Best Indonesian Small Indonesia’s Best
Cap Investor Relations
2009 & 2007 AKR & Sorini

Best Investor Relations


Officer
2008

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 9


Corporate Presentation

Trading and Distribution

Indonesia’s largest private distributor of refined petroleum products

Indonesia’s largest distributor of bulk chemicals

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 10


Petroleum Distribution Quarterly Performance
48% YoY 50% YoY
(Rp, bn) Quarterly Revenue
(k KL) 2,105
Quarterly Volume 2,065
450 2,100
399
400 364 1,690 1,642
350 320 1,600 1,405 1,391
293
300 270 259 1,100
250
200 600
150
100 100
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E

(Rp/lt)
Avg. Selling Price (Rp/lt)
6,000 5,606
5,238 5,276 5,404 5,290 5,478
5,500
5,000 4,579
4,298
4,500
4,000
3,500
3,000
09

09

09

09

10

10

10

E
10
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 11


Latest Development on Fuel Subsidies Policy
• In Nov 2010, subsidized fuel consumption has surpassed quota allocated for
2010 of 36.5 million KL.
• The above combined with rising in world oil prices has put a significant
pressure on Government budget
• The Government has announced (approved by the House of Representative)
to remove subsidies for private car owner starting Mar 2011.
• According the Government plan, the limitation would be carried out at several
phases:
• Phase 1 – Mar 2011 - the Greater Jakarta Area.
• Phase 2 – Jul 2011 – Java & Bali.
• Phase 3 – 2012 - Kalimantan
• Phase 4 – 2013 - Sulawesi
• Main beneficiary would be foreign retail player such as Shell, Total, Petronas
as at open market competition consumer will prefer buying non-subsidized
products from foreign retail gas station for better quality and services.
• AKR through its Jakarta Tank Terminal would be also one of the key
beneficiaries as it is the only Independent storage available in the Greater
Jakarta area in anticipating volume growth from foreign retail player.
PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 12
Sufficient Capacity to Cater Immediate Volume Growth
• AKR Pioneered construction of Bulk Storage terminals in 1980’s to grow basic
chemicals business
• Pro-actively invested in key infrastructural facilities to capitalise on growth
opportunities in Petroleum downstream sector
• Platform for maintaining volume growth in the coming years

2011-2012
June 2010
2009
2005

509,185 KL
+
150,000 KL 248,500 KL 509,185 KL 65,000 KL (2011)
+
200,000 KL (JTT phase 2)
Current tank capacity allocation:
• Petroleum:151,035 KL
• Chemicals: 108,150 KL
• Jakarta Tank Terminal (JTT): 250,800 KL

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 13


Participating in Retail for future growth
• Large market for subsidized fuel (60% of Indonesia Petroleum Market) being
deregulated
• First time Private companies are allowed to distribute subsidized fuels in 2010
• In September 2010 AKR has been again appointed as the only private
company to distribute subsidized 103,220 KL fuels for the year 2011
• Provides a platform to understand and build capabilities to serve this large
market opportunity from AKR network
• AKR has set up retail locations in 6 provinces in Outside Java.
– North Sumatra
– Lampung
– West Kalimantan
– South Kalimantan
– East Kalimantan
– South Sulawesi 1 2
• AKR has a total of 31
retail gas stations (17 of
which are New stations
commencing in January
2011) selling subsidized
fuel.
3 4

1. Existing mini petrol station, 2. Four-island station, 3. Two-islands station, 4. One-island station
Pictures no2-4 are artist impressions

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 14


Large Market For Energy With Limited Supply
Indonesia Consumption of Refined Products
(Million KL)
• Indonesia consumes 62 million KL of refined
petroleum products per annum.
Non
• Gap between domestic refinery production and
Subsidized 40% domestic demand continues to grow 30% of
Fuel, 25
Non- refined products imported
60% Subsidized
Fuel, 37 • Fuel Subsidies continue to grow, necessitating
reduction in coming years

Source: Ministry of Finance

Subsidized vs. Non Subsidized Fuel Consumpsion (%) (kbpd) Domestic Refined Products Production vs. Demand in 2012
1600 1479
100%
80% 39 39 39 41 40 1200 564
918
60%
800 256 382
40% 152
61 61 61 59 60 38 114
20% 400
472 419
0% 0
2006 2007 2008 2009 2010 Production Demand
Subsidized Non Subsidized Others Fuel Oil Gasolin Diesel

Source: Ministry of Finance Source: Pertamina

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 15


Reducing Fuel Subsidies is National Priority

• Increasing fuel prices and demand for subsidized fuel putting pressure on
Indonesian Budget
• Fuel subsides in 2010 expected to reach Rp 92.8 trillion ( US$ 10.4 billion)
• Indonesian Government actively planning to reduce the fuel subsidies by
limiting consumption of subsidized fuels
• Roadmap laid to remove subsidies in full by 2014 – opportunities for players in
downstream sector

Annual Fuel Subsidies Allocation 2001 -2011 (Rp, Trillion) 2010 Fuel Subsidies Allocation vs. Public Expenditure (%)

180 160
160
Line Ministries Others, 3%
140 Expenditure, Fuel Subsidy,
120 35% 8%
93 96
100 88
80 73 67 Interest Subsidies, 19%
62 58
60 Payment, 10%
40 Non-Fuel
40 32 32 Subsidy, 11%
Transfer to
20 Region, 33%
-
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Ministry of Finance Source: Ministry of Finance

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 16


Capitalizing on Petroleum Deregulation
(k KL)
Petroleum Sales Volume
• In 2001, the Government allowed private 1500
1315
player to distribute refined products
1200
• In 2005, AKR became the first private 1025
company to import and distribute non-
900
subsidized fuel and sales volume grew from
671
only 21,000 KL in 2005 to 1,025 k KL in 2009
600 522
• In 2009, first private company allowed to
distribute subsidized fuel by BPH Migas for 300 258
2010
21
• In 2010, reappointed as the only private 0

company to distribute subsidized fuel for 2011

E
05

06

07

08

09

10
20

20

20

20

20

20
2001 Oct 2005 2006 - 2007 2008 - 2009 2010 onwards

Legislation 1st Private Significant Entry into Construction Growth in


passed Law Player to growth in Kalimantan of Largest Non-
on Petroleum import Non- Sales & and Sumatra, Private Subsidized
Deregulation subsidized Expansions servicing Petroleum Fuel &
fuel in storage mining and Tank Terminal Opportunities
Indonesia facilities power sectors in Indonesia in Subsidized
Fuel Market

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 17


Largest Private Distributor of Non Subsidized Fuel
• AKR imports and distributes petroleum in Indonesia
• Main products are High Speed Diesel, Fuel Oil, and Industrial Diesel Oil
• Customers includes mining, manufacture, power generation, plantation, and
fishery industries
• Good growth prospects with increasing demand for diesel and shortages in
domestic supplies
• Providing value added and customized solutions to customer requirements

Business Flow

Supplier and transporter AKR Corporindo Customers

Refineries Petroleum Hub Terminal Retail Stations

Oil Tanker Small Vessel Barge Truck

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 18


Energy distributor with integrated infrastructure network
• Pioneer in establishing key infrastructure in Indonesian ports: operates in 9
sea ports and 6 river ports
• Only private sector petroleum distributor with integrated network
• Efficient Supply Chain Management with focus on exceptional reliability,
high fulfillment rates, high quality standard, competitive pricing, and top-
notch service that result in a differentiating experience for customers
• Use of innovative technologies to:
• Increase productivity through integrated and automated business processes
• Reduce transportation and fuel costs through better distribution efficiency
• Improve demand planning and fulfillment to increase customer satisfaction and
loyalty

Medan
Terminals
509,185 KL
Kalimantan
Pontianak
Petroleum tanker
Sumatra Sanga Sanga* 3,000 KL
Palembang
Stagen
Banjarmasin * SPOB and chartered
Lampung Jakarta
Semarang
Tonasa * barges
Banten Eastern Part 40,307 KL
Surabaya
Bandung

Benoa Bali
Jawa
Trucks
Over 200 units
* Floating Storage

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 19


Largest Distributor of Basic Chemicals in Indonesia

Key Chemicals Principals Customer Industries

Trading & Distribution


Caustic Soda Liquid Asahimas Chemical Rayon industry
PVC Resins Textile industry
Solvay
Hydrochloric Acid Glass & construction
Qing Dao Soda Ash
Sodium Hypochlorite Soaps & detergents
Soda Ash Dense Lian Yung Gang Soda Ash Chemicals
Sodium Sulphate LG International MSG
Sulphuric Acid Indo Bharat Rayon Consumer goods
Methanol Pulp & paper
South Pacific Viscose
Hydrogen Peroxide Others

• Raw material for production of consumer goods


– Demand growth in line with Indonesian GDP
• Long term relationship with our Principals
• Strong Supply Chain adds value to customers and Principals
• Minimum Risk :
– Stable margins
– Foreign exchange - natural hedge

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 20


Basic Chemicals Quarterly Performance
27% YoY (Rp, bn) 26% YoY
(MT) Quarterly Volume Quarterly Revenue
554
560
350 307 488 480
500 446
300 280 286
249 261 440 394
225 380
250 380
200 320
150 260
100 200
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E

(Rp/kg) Avg. Selling Price (Rp/kg)


2,500 2,180
1,915
2,000 1,732 1,627 1,752 1,757 1,696 1,736

1,500
1,000
500
09

09

09

09

10

10

10

E
10
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 21


Corporate Presentation

Manufacturing

The world’s second largest producer of Sorbitol

Leading producer of wood adhesive in Indonesia

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 22


Sorbitol Business – World’s Second Largest Producer
• AKR through its subsidiary; Sorini and Khalista is the world’s 2nd largest
Sorbitol producer
– Sorini (68.82% AKR ownership) is based in Indonesia and the preferred
supplier to global FMCG companies exporting to over 78 countries
– Khalista (100% AKR ownership) is based in China and only catering
domestic market

24 hours

• Sorini has extended its production to other type of starch sweeteners as well
as going up stream producing tapioca starch
• Sorini was incorporated in 1983 and listed in the Indonesian Stock Exchange
since1992 with ticker code: SOBI

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 23


Sorini - Operation and production facilities

Sorini Unit II (30,000MT) Production capacity by products ('000 MT)


500

400

288
245
BTJ (45,000MT) 300

245
200 244
SUMATRA 228
215

Sorini Way Bungur (60,000MT) 100 195 195

78 90
30 30
-
2005 2006 2007 2008 2009 2010
Starch Starch sweeteners
Bandar
Lampung
STBC (55,000MT)
Sorini Kedaton (30,000MT) Surabaya
Jakarta

JAVA

Sorini Pandaan (232,800MT)


SIP (30,000MT)

Operational Offices Starch Factories

Starch Sweetener Factories Plantation Office (AAM)

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 24


Sorini - Primary focus in Asia Pacific
Sorbitol market share:
Global – 15%
Sorini is exporting to over 78 countries
Indonesia – 96%
Khalista caters China market China – 12%
Japan – 35%
Thailand – 50%
Malaysia – 70%
Philippines – 85%
Singapore – 60%
Vietnam – 45%

• Higher growth potential from emerging and


developing countries where households are
improving incomes and living standards
• Strategically located near the rapidly
growing and largely populated countries of
India and China
• Focused on potential markets in the Middle
East and Asia Pacific region
• Asian markets combined (including
Indonesia) contribute to over 86% of total
sales value

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 25


Sorini - Performance 2006 - 9m10
Sales (Rpbn) GrossProfit (Rpbn) Net Profit (Rpbn)
158
1,600 500 160
1,493 1,471 462 466 142

1,400 1,339
400 120
1,200
94
1,042
302
1,000 300 80
256 67
807
800
200 40
159 28
600

400 100 0

9m10
FY06

FY07

FY08

FY09
9m10

9m10
FY06

FY07

FY08

FY09

FY06

FY07

FY08

FY09
Sales Volume ('000 MT) Gross Margin Return on Equity
320 35.0% 30.0%

27.9%
32.5% 29.1% 25.0%
288 289 30.0%
290
20.0% 18.8%
17.6%
25.0%
264
22.3%
260 15.0%
246 12.8%
20.0%
17.4% 8.6%
18.0% 10.0%
230
15.0%
215 5.0%

200 10.0% 0.0%


9m10
FY06

FY07

FY08

FY09

3Q09

4Q09

1Q10

2Q10

3Q10

3Q09

4Q09

1Q10

2Q10

3Q10
PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 26
Khalista – Catering Domestic Sorbitol Market in China
(MT) Quarterly Volume
19,651
20,000

• AKR through subsidiary, Khalista 16,577 16,907


(100% ownership), is a leading 15,554
Sorbitol producer in China 15,000 14,356
• Khalista, commenced operation in
1995, has a installed capacity of
120,000 MT p.a. and is supplying to
consumer goods companies in China -14% YoY
10,000
• Main products includes Sorbitol 3Q09 4Q09 1Q10 2Q10 3Q10
Solution, Maltitol Solution, Mannitol
Solution
• Khalista performance has been
improving and we expect to have a Quarterly Revenue

positive bottom line in 2011 (Rp, bn)


• We are increasing volumes and 69,950 68,816
70,540
continue implementing various 70,000 1% YoY
measures to improve profitability 63,033

60,000 58,444

50,000

40,000
3Q09 4Q09 1Q10 2Q10 3Q10

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 27


Aruki – Leading Wood Adhesive Producer in Indonesia

• AKR through subsidiary ,PT Arjuna Utama Kimia or Aruki (99.99% owned by
AKR), is a leading Wood Adhesive producer in Indonesia
• Established in 1975, Aruki is serving both local and export market.
• In 2007, AKR acquired 65% stake from Mitsui Chemicals to increase its
shareholding to 99.99%
• Aruki contributes nearly to 10% of AKR’s net profit in 2009 and 2010
• Main products includes wood adhesive (90%) and paper chemicals (10%)
• Product applications:
– Plywood
– Block Board
– Particle Board
– MDF Board
– Wood working
– Wood Furniture
– Paper Making

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 28


Corporate Presentation

Other Businesses

Synergy from strategic investments


in infrastructure and energy related sector

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 29


Coal Mining as a Strategic Investment
• In 2009, AKR acquired 87.5% stake
in PT Anugrah Karya Raya, a holding
company with 5 coal mining
concessions in the North Barito
District, Kalimantan (Borneo) with a
total area approximately 24,388 Ha
• Expected to mine medium calorific
value coal with low sulphur content
• The coal mining concessions are
located nearby AKR’s Muaratewe
river port
• Potential markets:
– Indonesian customers
– Export to AKR’s Guigang Port in
China for sale to Chinese
customers after blending
• As with other Indonesian coal
producers, majority of capital
expenditure for production in the Location of coal mining Muaratewe
concessions - North
future would be funded by mining Barito District*
River port
contractors

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 30


China River Ports: As a Hub of South West China

• River Ports in Pearl River in Guigang


City, Guangxi Province, China,
acquired in 2006
• The ports are the largest port in Pearl
River, and the 13th largest river port in
China
• Modernization of facilities completed
to efficiently handle containers, coal,
cement, paper and other bulk cargo
• Current Capacity includes
– Container : 140,000 TEU pa
– General cargo : 1,500,000 MT pa
– Bulk cargo : 5,900,000 MT pa
• Profitable Operations; China Ports
contributed nearly 10% of Liuzhou

Consolidated profits in 2009


Guigang

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 31


Corporate Presentation

Consolidated Financial Statements

9 months ended 30th September 2010

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 32


Sales Volumes

Segment UOM 9M10 9M09 Inc (Dec)

Trading & Distribution


Petroleum KL 950,691 705,170 35%
Basic Chemical MT 826,828 655,372 26%
Manufacturing
Indonesia MT 317,352 257,778 23%
China MT 46,817 49,020 -4%
Bulk Logistic
Indonesia MT 5,376,498 4,478,948 20%
China MT 3,228,106 2,936,042 10%
Container Logistic
Indonesia TEUs 143,070 148,194 -3%
China TEUs 33,142 32,412 2%
9M10 Revenue Breakdown 9M09 Revenue Breakdown
Logistic, 3% Logistic, 4%
Basic
Basic
Chemicals,
Chemicals,
17%
20%
Petroleum,
Manufacturing Petroleum, 53%
, 20% 60%
Manufacturing
, 23%

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 33


Income Statements
in IDR Billion 9M10 9M09 Inc (Dec)

Net Sales 8,538 6,307 35%


Gross Profit 680 720 -6%
Operating Profit 320 427 -25%
Net Profit before Tax 317 347 -9%
Net Profit 225 192 17%
EPS ( Full Amount) 61.3 61.4 0%

Key Ratio (%)


Gross Margin 8.0% 11.4%
Operating Margin 3.8% 6.8%
Net Margin 2.6% 3.0%
ROE 12.6% 15.3%
ROA 4.2% 4.6%

(Rp, bn) Quarterly Revenue 40% YoY (Rp, bn) Quarterly Net Profit 4% YoY

3,500 3,317 90 83 85
81
3,000 2,653 2,789 70 71
2,371 2,433 70
2,500
2,000
50
1,500
1,000 30
3Q09 4Q09 1Q10 2Q10 3Q10 3Q09 4Q09 1Q10 2Q10 3Q10

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 34


Balance Sheets

In Rp Billion 9M10 9M09

Cash & Cash Equivalent 578 493


Receivables 1,797 1,138
Inventories 1,079 599
Fixed Assets 2,947 2,652
Other Assets 810.47 722.22
Total Assets 7,211 5,604

Payable 1,786 1,214


Total Debt 2,257 1,944
Other Liabilities 322 300
Total Liabilities 4,365 3,458

Minority Interest 470 474


Total Equity 2,376 1,672
Total Liabilities & Equity 7,211 5,604

Key Ratio
Receivable Days 54 46
Inventory Days 38 29
Payable Days 54 49
Net Gearing (x) 0.71 0.88

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 35


Working Capital & Net Gearing
Working Capital Turnover Net Gearing

(Days) (x)
1.20 1.12
65
1.10
60 1.00 0.88
60 0.90 0.79
53 54 0.76
55 52 0.80 0.71
54 0.70 0.64 0.64
50
46 51 0.60
45 49
45 42 0.50
41
44 0.40
40 3M09 6M09 9M09 12M09 3M10 6M10 9M10
41
39 39
35 38
34 35 Loan Breakdown
30 32 33
29 Entity Loan (Rp Bio) %
25 AKR 660 29%
Usaha Era Nusa Pratama 3 0%
20 Guigang Ports 312 14%
Khalista 19 1%
09

09

09

10

10

10
09
3M

6M

9M

3M

6M

9M

Total Debt - Without Sorini & JTT 994 44%


12

Jakarta Tank Terminal (JTT) 491 22%


Receivable Days Inventory Days Total Debt - Without Sorini 1,485 66%
Payable Days Sorini 772 34%
Total Debt 2,257 100%

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 36


Capital Expenditure 2010-11
Location Type of Assets Add. Capacity

Petroleum Terminals
Palembang tanks 6,000 KL
Gabion, North Sumatra tanks 10,000 KL
Stagen, South Kalimantan tanks 30,000 KL
Pontianak, West Kalimantan tanks 19,000 KL
Nilam Utara, East Jawa jetty 65,000 DWT
Transportation Units
Trucks
Petroleum vessels

To fund part of the long term working capital and capital expenditure plans,
raised Rp 531 billion (net) through Rights Issue in 1Q10

Site Plan
Tank No. 12 Tank No. 13
PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 37
Outlook & Strategies 2010
Chemicals
• Strong domestic demand for basic chemicals from consumer industries arising
from robust GDP growth in Indonesia
• We expect 2010 Sales Volume to grow by 20% compared to last year

Petroleum
• Increase Sales Volume growth in key sectors including mining, power
generation, bunker, etc
• Further expansion in Tank storage to support growth
• Optimizing through-puts and improving capacity utilization
• New market exploration: Eastern Indonesia and other sectors
• Opportunities from subsidized fuel segment deregulation

Manufacture (Sorini)
• Continue focusing on the Domestic market to increase sales volume
• Closely reviewing raw material purchasing and selling price
• Increasing sales of Starch Sweeteners from the new capacities
• Restructuring and improving efficiencies in the Starch plants
• Increasing production capacity of Starch and its utilization facilities

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 38


Corporate Structure and shareholding
PT Arthakencana
Public
Rayatama

59.24% (2) 40.76% (2)

Manufacturing Trading and Distribution Logistics

Indonesia China Indonesia China

100.0%
99.96% Khalista (Liuzhou) 99.99% AKR Guigang 93.98%
PT Arjuna Utama Kimia PT Usaha Era Nusa
Chemical Industries Ltd Guangxi Container
Pratama
Port

68.82% (2)
99.99% PT Andahanesa AKR Guigang Port 100.0%
PT Sorini Agro Asia
Abadi Co
Corporindo Tbk.

50.1% PT Sorini Towa 51.0% 78.0%


PT Jakarta Tank AKR Guigang
Berlian Corporindo Terminal Transshipment Port

70.0% (1) PT Saritanam


Pratama 87.5% PT Anugrah Karya AKR Guigang Coal 100.0%
Raya Trading
65.0% PT Agro Asia
Manunggal

99.99% PT Bumi Tapioka


Jaya
Free float >40% - AKR eligible for 5%
reduction in corporate tax rate
(1) PT AKR Corporindo Tbk also owns 30% directly in PT Saritanam Pratama
(2) Shareholding as of 30th Novemberl 2010

PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 39


Increasing Shareholder Value
Source: Financial Time (3 January 2011)

AKRA

Share Performance 1 Week 1 Month 6 Months 1 Year 5 Years


AKR Corporindo Tbk PT 2.40% 8.23% 66.02% 54.17% 501.27%
JSX COMPOSITE INDEX 2.99% 1.01% 29.76% 47.32% 215.15%
Cash Dividend
Net Profits Dividend Payout  Consistent dividend payout ratio above
Year per Share
(Rp Mio) (Rp Mio) Ratio
(Rp)* 30% since 2004
2004 8 76,117 24,960 32.8%
 Rights Issue and divestment of Majority
2005 12 119,289 37,440 31.4%
shareholder’s shareholding has resulted
2006 13 128,084 40,560 31.7% in enhancement of the stock’s liquidity
2007 19 191,208 59,379 31.0%
 AKR will continue the efforts to increase
2008 21 210,033 65,633 31.2%
shareholders value, including by way of
2009 25 274,718 94,591 34.4% investing in fast growing businesses
2010** 30 225,341*** 113,790 na (i.e. petroleum distribution)
*adjusted with a 1: 5 stock split ** Interim dividend payable on 9 Dec 2010
** 9M10 net profit
PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 40
Thank You

Please visit us at www.akr.co.id

Mailing address:
PT AKR Corporindo Tbk.
Wisma AKR, 8th Floor
Jl. Panjang no.5, Kebon Jeruk
Jakarta 11530
Indonesia

Contacts:
V Suresh Teguh Sunyoto
Director – Investor Relations Manager
AKR Corporindo Tbk. AKR Corporindo Tbk.
e-mail suresh.vembu@akr.co.id e-mail teguh.sunyoto@akr.co.id
ph +62 21 531 1177 ph +62 21 531 1110
cell +62 8128255911
Disclaimer: This communication is solely for the addressee(s) and may contain confidential or privileged information. This publication
does not have regard to specific investment objectives, financial situation and the particular needs of any specific person or entity who
may receive this report. Accordingly, neither we nor any of our affiliates nor persons related to us accept any liability whatsoever for any
direct, indirect or consequential losses or damages that may arise from the use of information or opinions in this publication. Many
factors, including those discussed more fully elsewhere in this release and in PT AKR Corporindo Tbk Or its affiliates' filings with the
respective regulatory authorities particularly their quarterly financial statements, annual reports, corporate presentations as well as
others, could cause results to differ materially from those stated. Opinions expressed may be subject to change without notice. Please
contact us if you do not wish to receive these communications in the future.
PT AKR Corporindo Tbk | OSK Asean Corporate Day – January 2011 41