material discussion pt jasa armada indonesia, tbk. · pelindo ii (ipc) group public 23%... 4 key...
TRANSCRIPT
December, 2018
MATERIAL DISCUSSION
PT Jasa Armada Indonesia, Tbk.
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1
Table of Contents
Section Title Page
1 Company Overview 3
2 Business Process & Model 6
3 Business Development 13
4 Operational & Financial Highlights 20
5 Key Investment Highlights 25
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2
Section 1
Company Overview
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3
Shareholders and Group Structure
Shareholders
PT Jasa Armada Indonesia Tbk
PT Pelabuhan Indonesia II
(Persero)
PT Multi Terminal Indonesia
Koperasi Pegawai Maritim
76.89%0.11%
99.00%
1.00%
Pemerintah Republik Indonesia
100.00%
Pelindo II (IPC) Group
Public23%
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4
Key Facilities
74Vessels
(Tugboat, Pilot boat, Mooringand Bulk Carrier)
879Professional Employees
11Operational offices
Sumatera
Java
Kalimantan
PelabuhanTeluk BayurPelabuhan
Teluk Bayur
PelabuhanBengkuluPelabuhanBengkulu
PelabuhanPanjang
PelabuhanPanjang
PelabuhanJambi
PelabuhanJambi
PelabuhanPangkal Balam
PelabuhanPangkal Balam
PelabuhanPalembangPelabuhanPalembang
PelabuhanTanjung Pandan
PelabuhanTanjung Pandan
PelabuhanBanten
PelabuhanBanten
PelabuhanTanjung Priok
PelabuhanTanjung Priok
PelabuhanCirebon
PelabuhanCirebon
PelabuhanPontianakPelabuhanPontianak
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5
Section 2
Business Process & Model
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6
Line of Business
Pilotage and Towage
JAI provides pilotage & towage services to ensure smooth and safe berthing for vesselsentering and departing Seaports, Inland Waterways, and Oil & Gas Offshore Ship-to-Ship(STS) Activities.
Based on Ministry of Transportation (MoT) regulations which complies with internationalregulations, all vessels above 500 GT are subject to pilotage and towage, in which mandated port operators and STS operators has to provide such activity under Indonesian maritime law.
Pilotage is essentialy an activity under State Authority, inrespective port operators as state representatives.
which delegated and mandated to
Piloton Board
Piloting &Towing INVessel Arrival Berthing
Loading &Unloading
VesselDeparture
Piloting &Towing OUT
Pilotoff Board
Pilotage & Towage Flow Chart
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Use of Services
Guardian of Commodity, Trade & Environment
Piloting and towing are essentialsfor maneuvering ships throughdangerous or congested waters,such as harbors, river mouths oroffshore transshipments.
Without pilot andall ports and oil transshipment
towing services,& gas offshore
would beexposedrisks.
with unacceptable
Pilotage & Towage for
Offshore STSPilotage & Towage for
Inland Wateways
Pilotage & Towage for
Container Vessels
Pilotage & Towage for
Bulk & Liquid Cargos
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Business Segments
Private Terminal/TUKSPublic Port
Inland Waterways Tersus/STS
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Cargo Shipping
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9
Pricing Policies
IPC Public Ports
• Pilotage & Towage tariffs are similar to how taxi fares are charge:
• Fixed floor charge, similar to taxi metre starts;
• Variable tariffs based on he category of ships and their tonnage multiplied by thehours of service on multiples of 30 minutes.
• International vessels are charged in USD. The price is around 10% higher than in PSA
Singapore. Local vessels are charged in IDR, the price is muchvessels.
lower than international
• Upfront payment with low risk to default.
• Tariff revision every 2 years. JAI and INSA (Indonesia Nationaldecide tariff incremental, approved by MoT.
Shipwoners Association)
Domestic
Vessels,
29.58%
International
Vessels,
70.42%
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Pricing Policies
Private Terminals
Pilotage & Towage tariff for Private Terminals follows Port Terminal tariff structure.
Inland Waterways
Pilotage & Towage only required upon Municipal regulations in special locations due to dangerousor congested waters. Tariff structure follows Port Terminal, but historically round 300% higher.
STS
Pilotage & Towage tariffs are charged based on:
• Towage Rental: calculated on USD x HP x 360 days, paid by O&G companies (STSoperator);
• Service Charge: on Ship Call basis, paid by the Shippers.
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11
Fleet Maintenance
Fleet Inspection & Upgrading
• After spun off, in 2015 JAI hired Thome Consulting to inspect and upgrade the fleet, fromprevious grade 2.4 (48% from highest grade 5) to become currently grade 3.6 (72%). Average vessel age is 8.5 years, relatively young for 20 years lifetime.
Excellent Maintenance System
• Trained by Thome Consulting, JAI executes daily maintenance for engine and lubricant,body and painting by the crews, supervised by Technical Superintendents, using AMOS ITmaintenance management.
Cost Effectiveness:
• Lubricants and Painting with vendor guarantee to replace at their own cost shall the
spareparts lifetime not exceeding the guaranteedtime.
Docking
duration. Inventories are provided just in
• Comply with class & statutoryregulations, docking every 2.5 yearsand checked by Class Surveyors.
Under Water Inspection in Lieu of DryDocking (UWILD)
• An internationally accepted alter-
native to dry-docking inspectioninspectionsurveys, with sub-surface
to reduce downtime.
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Section 3
Business Development
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13
New Customer
Service : Pilotage, Towage and STS Operations
Customer : Coal Miners Along Musi River
Location : Ambang Luar Sungai Musi, Palembang
Start Operation : October 2018
Volume Target : ± 14 Vessels per month.
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New Customer
Service : Pilotage, Towage and STS Operations
Customer : ExxonMobil Oil Terminal
Location : Lamongan, Jawa Timur
Start Operation : On Progress
Volume Target : ± 8-10 Domestic vessels and 2-4 Foreign vessels per month.
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15
Investment
Progress : Keel Laying on 27 November 2018 with PT Citra ShipyardItem : 4 units Tugboat 2 x 2200 HP type Azimuth Stern Drive (ASD)Contract Value : IDR 223,85 Billion.
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Section 4
Operational & Financial Highlights
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Operational Highlights
No Type of Fleet Owned Leased Total Fleet
1 Tug Boat 1200 HP - 12 12
2 Tug Boat 2400 HP 3 11 14
3 Tug Boat 3200 HP 9 2 11
4 Pilot Boat 9 21 30
5 Mooring Boat 2 3 5
6 Bulk Carrier - 2 2
Total 23 51 74
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Operational Highlights
Tonnage Shipping and Freight (IDR)HSD average price (Rp/liter)
Utilization Rate (Towage)Time & GT (Towage)
155,144
118,370
97,190
186,111 184,107
219,105
-
50,000
100,000
150,000
200,000
250,000
2017 9M17 9M18
Tonnage Freight (IDR)
6,075
7,372 7,253
9,591
-
2,000
4,000
6,000
8,000
10,000
12,000
2016 2017 9M17 9M18
HSD
161,206 152,401
112,014 122,417
132,069 134,233
99,925 109,701
-
50,000
100,000
150,000
200,000
2016 2017 9M17 9M18
Time GT (in '0000)
52
55
54
49
46
48
50
52
54
56
2016 2017 9M17 9M18
Utilization rate (%)
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19
Financial Highlights
EBITDA (IDR billion) & EBITDA MarginOperating Profit (IDR billion) & Operating Margin
Revenues (IDR billion)Financial Position (IDR billion)
Note:
• Revenue during 2017 decreased compared to 2016 due to Pelindo II policy to fully comply government regulation, of which the
government has delegated pilotage services to Pelindo II for Pelindo II territories, therefore pilotage revenue 2017 and onward is
accounted as Pelindo II’s revenue. Although JAI’s revenue is declined, its EBITDA Margin and Net Profit Margin increased because
pilotage tariffs in public ports (Pelindo II) are considered as public service obligations.
• In 2018 revenue sharing from Pelindo II to JAI is 85% compared to 99% in 2017. As of January 2018, PNBP obligation belongs to
Pelindo II.
Balance sheet (Rp bn) 2016 2017 9M18
Assets 598 1,356 1,277
Liabilities 262 352 218
Equity 598 1,356 1,059
Current ratio 2.0 2.6 4.0
Net gearing Net cash Net cash Net cash
Net debt to EBITDA 1.2 Net cash Net cash
172 174
109
130
20.8%
23.4%
20.2%
23.8%
18.0%
19.0%
20.0%
21.0%
22.0%
23.0%
24.0%
25.0%
-
50
100
150
200
2016 2017 9M17 9M18
EBITDA EBITDA margin
169 167
107 110
20.4%
22.4%
19.8%20.1%
-
50
100
150
200
18.0%
19.0%
20.0%
21.0%
22.0%
23.0%
2016 2017 9M17 9M18
Operating profit (IDR bn) Operating margin
828
668
159
8
747 685
-65
546 546
-66
-
200
400
600
800
1,000
Revenues Towage Pilotage Others
2016 2017 9M18
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20
Financial Highlights
Revenue Contribution per Area
In 9M18, Revenue is dominated by ship service
segment in the form of towage service of 89%.
Nevertheless, the Company is developing a new
business segment of which sea freight service and
ship management that contributes of some 16% to
total revenue.
Revenue Contribution per Segment
Port of Tanjung Priok contributes 48% of total
revenue. 61% of JAI’s total revenue is contributed
by 2 major ports which are Tanjung Priok and
Palembang. And the new business segment which
is sea freight service contributes 12% of total
revenue.
48%
13%
12%
8%
7%6% 6%
Tanjung Priok
Palembang
Kantor Pusat
Banten
Panjang
Teluk Bayur
Cabang Lain
87.8%
4.4%7.7%
Jasa Pelayanan Kapal
Freight services
Fleet management
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17%
13%
67%
100%
Net Profit GA Expense COGS Net Revenue
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Revenue & Cost Structure
SG&A StructureCOGS Structure
Revenue Structure
I/S Structure
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Section 4
Key Investment Highlights
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23
Key Investment Highlights
1
2
3
45
6
7
Special Delegationfrom State Authority
Captive & Prepaid Customers
The Largest, Most Reliableand Most ProfitablePilotage & Towage Company
Capex Light withClean Balance Sheet
STS & Shipping Market Acquisition
to Create More Value
Solid Growth,in Fully Funded
Port Development
ExperiencedManagement Team
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1. Special Delegation from State Authority
Ministry of Transportation
Granted to some companies
for private use only
JAI is the only company that
Delegation
Pilotage RegulationsPort & STS Operator
License (BUP)Pilotage Delegations
All vessels 500 GT and above entering and departing BUP
are subject to pilotage and towage.
Public Ports:
Only granted to 4 SOEs (Pelindo I – IV), operated in
separate territories
Public Ports:
Only granted to 4 SOEs
(Pelindo I – IV). JAI is the sole operator in IPC jurisdictions.
Private Terminals (TUKS): Granted to 3 SOE subs: JAI;
KBS (does not have pilots nor tugs); PTBA’s (no longer
operates). Also granted to very few terminal owners.
Private Terminals (TUKS):
that have sea/river terminals,
STS Operators (Tersus):
Oil & Gas Offshore Ship-to-Ship Operators STS (Tersus):
has pilotage delegation in STS
territoriesNote: BUP excludes Pilotage
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2. Captive and Prepaid Customers
IPC Public Ports are the only choices for the industries nearby in strategic locations. JAI is theonly pilot and towage vessel provider in all Public Ports under IPC jurisdictions.all customers to pay service price in advance with low risk to default.
IPC requires
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3. The Largest, Most Reliable & Most Profitable in The Business
the oldest existing pilotage and
Indonesia.
Marine Service Company
Pilotage & Towage Company
pilotage & towage company in
The Most Profitable
17%NPM
JAI is the most profitable
Indonesia.
Coverage
Maximum coverage, including
Advanced Protection & Indemnity
500USD Million
third party assets coverage.
The Most Prominent and Acknowledged
The Company has been granted with Safety Management certifications.
The Most Experienced
57Years
Since the commencement of its service in 1960, JAI has become
towage service provider in
The Largest Fleet in The Business
74Vessels
With 74 fleets under management to support 11 IPC ports, more than 50 TUKS and its STS businesses.
Relatively young vessels age of
8.5 year to support future expansion
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4. Capex Light with Clean Balance Sheet
JAI is in net cash position with a fleet of 74 vessels. It is operating at 49% utilization as of9M18, with utilisation ceiling at 65% and sufficient for next 3 years.
Fleet
Offshore STS
Private Terminals
Inland Waterways
Maximizing
Utilization, Minimizing
Costs
Operating Offices in IPC Ports
in 11 StrategicLocations
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5. Captive Growth In Fully Funded Port Development
IPC plans to develop new ports, declared as National Strategic Projects by PresidentialDecrees. With these projects, IPC will double its capacity in next 5 years. Total projectUSD 1.6 B, fully funded. JAI will be the sole pilot & towage provider in the new ports.
cost is
Port of SorongPort of Kijing, West Kalimantan
Cikarang Bekasi LautNew Priok, Jakarta
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6. STS Market Acquisition to Create More Value
On May 23rd, 2017,MoT has declared toenforce pilotagecompiance in all portand STS activities.
Currently, JAI is theonly operator that
has license in those“ExtraordinatyPilotage Territories”.
JAI is committed tosupport MoT andSKK Migas (MoE asthe owner of oil & gasresources) to enforcecompliance with MoTpilotage regulations.
Through this lawenforcement scheme,JAI aims to increasemarket share fromcurrently 10% tobecome 50% in next3 years.
PT Jasa Armada Indonesia, Tbk
Thank You