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PT Krakatau Steel (Persero) Tbk

Management Presentation

October 2016
Table of Contents

1. Company Overview 2

2. Growth Strategies 16

3. Financial Highlights 21

Attachments

1
Section 1
Company Overview

2
Brief Overview
 PT Krakatau Steel (Persero) Tbk (“KS” or the “Company”) is the largest steel
producer in Indonesia with over 46 years of experience in the steel industry and total
rolling capacity of 3.15 million tons per annum (mtpa)(1). The Company is 80% owned
by Government of Indonesia and 20% by public
- #1 in hot rolled coil (“HRC”) and cold rolled coil (“CRC”)
- #2 in wire rod (“WR”)
• The Company has planned to increase its total rolling capacity by 47.62% to 4.65
mtpa with an additional capacity of 1.5 mtpa through the construction of Hot Strip Mill
#2 by 2019
• The Company’s integrated upstream and downstream production facilities with VISION
supporting infrastructure are strategically located in Cilegon, Banten province with An integrated steel company with competitive
convenient access to raw materials and customers edges to grow continuously toward a leading global
• The Company has formed strategic partnership with the world’s leading steel enterprise
companies:
MISSION
- Posco (South Korea): joint venture (JV) establishment of PT Krakatau Providing the best quality steel products and related
Posco(2), an integrated steel producer with a capacity of 3.0 mtpa services for the prosperity of the nation
- Nippon Steel Sumitomo Metal Corp. (Japan): JV establishment of PT
Krakatau Nippon Steel Sumikin(3), a steel manufacturer for automotive
industry with a capacity of 500,000 tpa
- Osaka Steel Co., Ltd. (Japan): JV establishment of PT Krakatau Osaka
Steel(3), a producer of steel bars and sections with a capacity of 500,000 tpa
• The Company has grown its asset by over 11% CAGR 2011-2015 with its 11
subsidiaries and 15 associated entities (including JVs) and increased its steel
sales volume significantly by 40% Year-On-Year (YoY) in 1H2016

(1) Existing total rolling capacity of Hot Strip Mill (2.4 million ton), Wire Rod Mill (0.45 million ton), Bar Mill (0.15 million ton), and Section Mill (0.15 million ton), excluding JV’s rolling capacity
(2) KS owns 30% of the JV; (3) KS owns 20% of the JV

The first and largest integrated steel producer in Indonesia with leading
domestic market share
3
Key Milestones
Port Expansion to 25 mtpa
handling capacity
Commercial operation of:
Expansion of - ERW #2: 150,000 tpa
Section Mill to - KDL CCPP 120 MW
150,000 tpa Revitalization
of HSM (2.4 mtpa)
Completed Modernization
expansion of of HSM (2.0 mtpa)
Wire Rod Mill to
0.45 mtpa
2014 2016
Commercial operation of:
- Slab Steel Plant I (1.0 mtpa) 2011 2013
2010
- HSM (1.0 mtpa) 2005
2003
Commercial operation of: 2001
- Bar Mill (150,000 tpa) 1997
Commercial operation
- Section Mill (45,000 tpa) 1993 Optimization of: IPO
of PT Krakatau Posco
- CRM (3.0 mtpa)
1983 Started construction of
- HSM
Expansion of HSM #2 (1.5 mtpa)
PT Krakatau Steel 1978
established - Direct Reduction Plant (1.3 mtpa)
1975 - Slab Steel Plant II (0.8 mtpa)
- HSM (1.8 mtpa)
Integrated Operation of KS
- DR Hyl I (2.0 mtpa)
1970 - Billet Plant (0.5 mtpa)
- Wire Rod Mill (0.22 mtpa)
Note: mtpa: million tons per annum
- Coal-fired Steam Power Plant & Port

Sustainable development through the expansion and modernization

4
Business Portfolio
Raw Material Ironmaking Steelmaking Rolling Down Stream
Raw Material Sponge iron Steel Profile & Pipe
Steel Business

Solution Producer Core Business Bar Producer Producer

1. Flat Product
(Steel Slab, HRC/P, CRC/S)

PT Krakatau PT Meratus 2. Long Product PT Krakatau PT KHI Pipe


National Jaya Iron and (Steel Billet, Wire Rod) Wajatama Industries
Resources Steel (100%) (100%)
(100%) (66%)

Supporting Business Other Business


Non - Steel Business

Electricity Port Service Industrial Water IT Service Health Care Industrial Estate EPC
Provider Provider Provider Provider Service Provider Company

PT Krakatau Daya PT Krakatau PT Krakatau Tirta PT Krakatau PT Krakatau PT Krakatau PT Krakatau


Listrik Bandar Samudera Industri Information Medika Industrial Estate Engineering
(100%) (100%) (100%) Technology (98%) Cilegon (100%)
(100%) (100%)

• PT Krakatau Posco (30%)* • PT Latinusa (20.10%)


Affiliates

• PT Krakatau Nippon Steel Sumikin (20%)* • PT Kerismas Witikco Makmur (29.31%)


Major

• PT Krakatau Osaka Steel (20%)* • PT Krakatau Semen Indonesia (50%)


• PT Indo Japan Steel Center (20%)
Effective ownership: direct/indirect ownership
*KS has the rights to increase its ownership up to 45% in Krakatau Posco, 51% in Krakatau Nippon Steel
Sumikin, and 51% in Krakatau Osaka Steel

Diversified business portfolio to supports KS’ business performance


5
PTKS Production Process

PT Krakatau Posco
Slab Steel Plant Steel Slab Plate Mill
Plate
3.0 mtpy 1.5 mtpy

1x300 ton 1xLF, 1xRH 1xCCM

PT Krakatau Steel Steel 1.5 mtpy Cold


Slab Rolled
Slab Steel Plant 2 Coil
Direct 2.0
Reduction
Hot Strip Mill Hot
DRI mtpy Rolled 0.85
Plant
Coil Cold mtpy
1.7 mtpy 2x130 ton 1xLF, 1xRH 1xCCM
Rolling Mill
2.4mtpy Cold Rolled
Slab Steel Plant 1
Coil/Sheet

Hot Rolled
4x130 ton 2xLF 2xCCM Coil/Plate
Blast
Furnace Steel Wire
Billet Rod
Billet Steel Plant Wire Rod Mill
0.65 mtpy 0.45 mtpy
Wire Rod
Bars & Sections
4x60 ton 1xLF 2xCCM
0.2 mtpy Bars &
Undergoing
Sections

PT MJIS Rotary Kiln 0.3 mtpy

2x150.000 ton

6
Leadership in the Indonesian Steel Market

HRC CRC WR
Market share in Indonesia

17% 33%
20%
29% 11%
43% (10%)*
(39%)* (29%)*
#2
(1H2016)

#1 #1
54% 55%
37%

Total Demand 2015: Total Demand 2015: Total Demand 2015:


3.97 million tons 1.83 million tons 1.27 million tons

KS Import Other domestic producers *( ) 2015 market share


Production capacity

Krakatau Steel 2.4* Krakatau Steel 0,85 Ispat Indo 0,7

Krakatau Posco 1,5 Essar Indonesia 0,4 Krakatau Steel 0,45


(2016)

Gunung Raja Paksi 0,7 Little Giant Master Steel


0,23 0,25
Indonesia

Gunawan Dianjaya 0,35 Gunung Garuda 0,12 Gunung Gahapi 0,1

(mtpa) (mtpa) (mtpa)

*) new production capacity of 3.9 mtpa

Dominant market position across major steel products in Indonesia

7
Advantageous Pricing over Imports

 Faster physical delivery


Historical premium price to imports
Location  Short turnaround and lead times
advantages 200
 Accommodate both large and small orders
155
129
109

USD/ton
100 78
Dominant
 Economies of scale in production
position and
customer  Negotiating power with our suppliers and
0
relationships customers due to our size 2013 2014 2015 1H2016
Note: (1) Defined as KS HRC domestic selling price less Far East import HRC price
and excludes duties and freight
2013: US$681-US$572
 Fair trade practices when necessary
2014: US$649-US$520
 Re-registration of steel importers 2015: US$493-US$338
1H2016: US$426-US$348
Support for  Indonesia National Standard (SNI) certification (2) Breakdown of 2015 imports by region: Japan (39%), South Korea (32%), and

domestic steel requirements Taiwan (10%)


(3) Currency conversions based on exchange rate as of June 30, 2016 Rp.
industry  Local content policy 13.885/US$1

 Presidential decree that encourages the Source: CRU Strategies, Company data

consumption of local products

KS enjoys favorable pricing due to its competitive advantage and strong Government support

8
Integrated Production Facilities Across Value Chain

#1 Raw materials access on-site #2 Integrated production facilities #3 Close to customers

Bar & Section Galvanized Steel /Annealed


Power Downstream
Producer CRC Producer
PT Krakatau Daya Listrik PT KHI Pipe Industries 63% of customers are located in
PT Krakatau Osaka Steel PT Krakatau Nippon Steel Sumikin
(Electricity Generation) (Pipe & Coating Producer) Greater Jakarta(1)

94 km from
Jakarta via
 Toll road
 Rail

KS

(1) Based on 2015 steel products sales volume


Port Integrated Steel Integrated Steel Mill Water Bar &
Mill (Slab, Billet, HRC, Section
PT Krakatau Bandar (Slab & Plate PT Krakatau Tirta Industri Producer
Samudera
CRC, WR Producer)
Producer) (Industrial Water Provider)
(Port Service) PT Krakatau Wajatama
PT Krakatau Steel
PT Krakatau Posco

Transportation cost savings, supply chain efficiency and


faster customer responsiveness provide KS with significant advantages over our competition
9
Strong and Diversified Customer Base

Product Diverse end-markets Strong sales proportion (1) Low customer concentration
End-markets Proportion of total steel sales in 1H2016 Top 5 customers of total steel
sales in 1H2016
HRC  Automotive
 Mechanical engineering and
boiler pressure vessels
A
 General structure
9%
 Oil and gas pipes B
 Shipbuilding 5% C
Stockist & Coil 5%
Center D
34% 4%
 Automotive Manufacturing All other
CRC E
Company customers
 Coil Centers 66%
7%
70%
 Drum
 Pipes, tube packaging, tin
plates
 Home-office appliance
 Enamel
 Galvanized steel sheet

Wire  Automotive
 Appliances Sales volume: 1.17 million tons
 Bolts and nuts, nails
 Construction, welding
 Cable wires, wire rope
 Spring bed’ electrode
 Nails, welding

Our customer and distribution mix provides us with leverage in the market

10
Global Steel Price (Hot Rolled Coil)
Hot Rolled Coil; CFR East Asia (USD/ton)
1200
Jul-08; 1090

1000

800

600
Sep-16; 400,5

400

200 Des-15; 265,5

Steel price hit a lowest point at December 2015, but start to increase since beginning of 2016

11
Performance of Chinese Steel Mills

Profit/(Loss) (USD Million) – 2015 Production Cost and Export Price

Chongqing (922)

Maanshan (740)

Angang (708)

Hunan Valin (456)

Xinjiang Ba Yi (387)

Shagang (12)

Lingyuan 7

Baosteel 156

(1.100) (900) (700) (500) (300) (100) 100 300


Source: World Steel Dynamics (Inside Track, September 2015)
Source: Morningstar (accessed April 2016) Operating Cost (Before Depreciation and Interest)

 51% of Chinese steel producers suffered losses  Chinese HRC export price lower than its
in 2015. Total losses reached USD 12.6 billion production cost (Operating Cost). At August
(WSD, Inside Track 146, 2016). 2015, the difference reached USD 60 per ton.

Low steel prices have an impact on the loss of Chinese steel mills

12
Indonesia’s Steel Demand
Indonesia’s Real GDP (billion USD) Finished steel consumption in Indonesia (mn ton)
Source: World Bank Source: South East Asia Iron & Steel Institute
Consumption Import
Imports 46% 55% 61% 63% 65% 57% 61%

893 918 910 889 12,7 12,9


862 12,5
11,0 11,4
755
9,0
7,9 8,2
540 7,4 7,3 7,6
6,7
4,9
3,4

2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015

Indonesia’s steel demand drivers

Demand for infrastructure  Infrastructure, including among others, toll-road, airports, seaports, bridges, and ship building

High population density  Steel intensive construction, including among others, residential and non-residential buildings, high-rise buildings

Energy sector  Power plant, electric transmission and oil & gas development projects

Indonesian steel consumption has increased with limited domestic supply.


Hence, market opportunity is significantly high.

13
Per Capita Steel Consumption

Lower steel consumption per capita compared to other Indonesia set to enter a highly “steel-intensive”
selected ASEAN countries phase of growth
Steel consumption per capita in 2014 (kg)
889,8

Kg per Capita
GDP per Capita

391,9

297,4

181,7

85,9
60,8

Indonesia Philippines Vietnam Thailand Malaysia Singapore

Source: World Steel Statistic (2015) Source: World Steel Statistic (2015), World Economic Outlook

Steel consumption per capita typically increases with higher overall economic growth

14
Government Support for Indonesia Steel Industry

Gas Price PP No. 40, 2016 and PM ESDM No. 16, 2016
Policy Steel industry is among industries which benefit from a more favorable gas price policy

Supply of 200,000 tons/year of steel for the construction of 46,000 km power transmission circuits in
5 years (Decree of Minister of Industry No. 15/M-Ind/Per/3/2016). First shipment was made on 26 Oct
2016.
Supply of 250,000 tons/year of steel for the construction 36 km of Jakarta - Cikampek elevated toll
road
SOEs
Supply of corrugated steel for the planned construction of flyovers along 8,000 rail-road intersections
Synergy in several cities in Java island
Steel supply for State-Owned Enterprises (SOEs) projects: Kuala Tanjung Port - Medan (Pelindo I),
Celukan-Bali and Banyuwangi Ports (Pelindo III), and construction of Unloading Port (Pelindo I)
Steel supply for SOEs in heavy industry and shipbuilding sectors in relation to the National
Shipbuilding and Heavy Industry Forum, i.e. PAL, DPS, DKB, IKI, Barata Indonesia, BBI

Steel Implementation of Indonesia National Standard (SNI) for steel products


Implementation of tariff barriers (anti dumping duty, safeguard and import duty) and non-tariff barriers
Market
(trade regulation for alloy steel and local content policy/TKDN) to protect domestic steel industry from
Policy unfair trade practices

Capital injection by the government (PMN) of Rp 1.5 trillion as stipulated in Law No. 12/2016
Funding
regarding revision of Law No. 14/2015 regarding 2016 state budget (APBN 2016)

The government provides strong support for the growth of domestic steel industry

15
Section 2
Growth Strategies

16
Capacity and Competitiveness Improvement

Completion
Program Additional Capacity Project Cost
Schedule
1 HSM #2(1) 1.5 million ton HRC USD 505 million 2019
Capacity
Improvement 2 Push Pull Pickling Line 0.6 million ton HRPO 2018
USD 52 million
3 Reversing Mill 0.4 million ton CRC 2018

4 PT KOS(2) 0.5 million ton Bar & Section USD 220 million 2016

Completion
Program Lower Production Cost(3) Project Cost
Schedule
1 Blast Furnace 58.2 USD per ton HRC USD 716 million 2016(4)
Competitiveness
2 Coal-fired Boiler 2x80 MW 5.5 USD per ton HRC USD 102 million 2019
Improvement
3 Coal-Fired Steam Power Plant 1x150 MW(1) 5.0 USD per ton HRC USD 175 million 2019
4 HSM #2 7.2 USD per ton HRC USD 505 million 2019

(1) Part of the project cost will be funded by 2016 Rights Issue proceeds
(2) PT Krakatau Osaka Steel, JV with Osaka Steel Co., Ltd. in which KS has a 20% share
(3) PricewaterhouseCoopers report (PwC), 2015
(4) Start operating/first blow-in

Focus on capacity expansion and competitiveness improvement to meet increasing steel demand
and to face increasingly stiff competition

17
Increased Value-Added Products and Non Steel Business

Program Capacity Product Schedule


1 PT KNSS(1) 0.5 million ton Galvanized/Annealed CRC for 2017
Increased Value- automotive
Added Products
2 PT KSI(2) 0.75 million ton Grinded Blast Furnace Slag for 2017
cement raw materials

Program Capacity Product / Service Schedule


Non-Steel 1 Jetty/Dock Development 7.3 (3) 1.3 million ton Loading and unloading services 2017
Business for bulk materials
Improvement Cipasauran Dam 750 lt/second Raw water for industrial needs 2019
2
Development(4)

(1) PT Krakatau Nippon Steel Sumikin, JV with Nippon Steel Sumitomo Metal Corporation (NSSMC) in which KS owns a 20% share
(2) PT Krakatau Semen Indonesia, JV with PT Semen Indonesia (Persero) Tbk in which KS owns a 50% share
(3) By PT Krakatau Bandar Samudera, a subsidiary which is 100% owned by KS
(4) By PT Krakatau Tirta Industri, a subsidiary which is 100% owned by KS

Expansion of steel products to meet increasing demand from automotive sector

18
Roadmap of Cost Efficiency
As-is
1 USD 496/ton
HRC Operating Cost Curve *
900 Blast Furnace
Tier I Tier II Tier III Tier IV 2
800 USD 58.2 / ton
700 3. HSM #2 HSM #2
Q1 15 HRC domestic price
USD 597 / ton USD 430/ton 3
600
5. Coal-firedSteam Power Plant USD 7.2 / ton
USD/ton

500 1 x 150 MW 1 1. As-is


USD 420/ton 5 4 3 2 USD 496/ton 4 Coal Boiler 2x80 MW
400 6 2. Blast Furnace
USD 437/ton USD 5.5 / ton
300

6. Gas price at USD 5 / 4. Coal Boiler 2 x 80 MW


200
MMBtu USD 425/ton 5 Coal-firedSteam Power Plant
1x150 MW
100 USD 407/ton
0 USD 5.0 / ton
100,000 200,000 300,000 400,000 500,000 600,000 700,000
Production capacity (cumulative) in thousand tons 6 Gas price at
Note: * Operating cost excludes depreciation, interest and SG&A of approximately USD 13 – 19 / ton, USD 5 / MMBtu
USD 17 / ton and USD 45 – 55 / ton, respectively.
Source: PTKS, Metal Bulletin Q1 2015, PwC analysis USD 12.8 / ton

Total : USD 88.7 / ton

Development program will enhance the competitiveness of the Company's products

19
Future Project Development

Picture of reference plant

Hot Strip Mill #2 PT Krakatau Osaka Steel PT Krakatau Semen Indonesia Coal-fired Steam Boiler 2x80MW

Product : Hot Rolled Coil Product : Bar & Section Product : Grinded Blast Furnace Slag Product : Electricity
Capacity : 1.5 million ton per year Capacity : 0.5 million ton per year Capacity : 0.75 million ton per year Capacity : 2x80MW
Progress : Groundbreaking August 2016 Progress : 70.9% (July 2016) Progress : 26% (July 2016) Progress : -
Completion : 1H2019 Completion : End of 2016 Completion : 2017 Completion : 2019

Picture is a 3D model

Blast Furnace PT Krakatau Nippon Steel Sumikin Jetty 7.3 Development Coal-fired Steam Power Plant 1x150MW

Product : Hot Metal Product : Galvanized/Annealed CRC Product : Harbor Service Product : Electricity
Capacity : 1.2 million ton per year Capacity : 0.5 million ton per year Capacity : 1.3 million ton Capacity : 1x150MW
Progress : 96.0% (July 2016) Progress : 52.3% (July 2016) Progress : 7.1% (July 2016) Progress : -
Completion : End of 2016 (FBI) Completion : Mid-2017 Completion : Early 2017 Completion : 2019

20
Section 3
Performance Highlights

21
Sales Performance
Steel Sales Volume Market Share
(million tons) (%)

2,3
22.25 1H 1H
1,9 2015 2015 2016
%
1,7
1,4
HRC 38.6 33.9 43.5

CRC 29.2 25.9 29.2

WR 10.1 10.2 11.1


2014 2015 M92015 M92016

Sales Value Breakdown


2014 2015 M92015 M92016

18% 17% HRC


27% 34%
45% 37% 6% CRC
8%
46% 53% WR
6% 24%
5% 28% Others
22% 24%

Significant increase in sales volume, mainly on the HRC sales volume


22
Financial Performance
Revenue & COGS Operating Income (Loss)
(million USD) (1) (2)/(1)
(million USD)
(2)
M9 2015 M9 2016 %
1.869 29
1.828 Revenue 993.4 982.3 (1.1)
COGS 1,014.3 844.3 (16.8)

2014 2015 M92015 M92016


1.358
1.322

(71)
993 1.014 982
844 (118)

(184)
2014 2015 M92015 M92016
Gross Profit (Loss) EBITDA*
(million USD) (million USD)
138
97

41

2014 2015 M9 2015 M9 2016


2014 2015 M92015 M92016 (8)

(36) (21) (69)


(86)
*EBITDA calculation excludes share of loss in associated company

Financial performance improvement gained momentum in M9 2016 compared to M9 2015

23
Financial Position
Cash & cash equivalents Total Liabilities
(million USD) (million USD)
2.032
Cash and Cash equivalent 1.914
237
Operating Cashflow

133 1.718
102

21
(2) (74)

2014 2015 M9 2016 2014 2015 M9 2016

Total Assets Total Equity


(million USD) (million USD)

3.702 3.832 1.800


1.788

2.604

886

2014 2015 M9 2016 2014 2015 M9 2016

24
Disclaimer

IMPORTANT: The following forms part of, and should be read in conjunction with, this presentation
This presentation contains privileged information and has been prepared solely for the recipient. By accepting a copy (or the contents) of this presentation, you are deemed to have acknowledged
and agreed to the provisions appearing hereinafter. The existence of this presentation and the contents thereof should not be disclosed, reproduced, copied or otherwise disseminated to any other
person or published, in whole or in part, without prior consent of PT Krakatau Steel (Persero) Tbk. (“KS” or the “Company”)
Unless otherwise stated, the Company is the source for all data contained in this presentation. This presentation is not directed to, or intended for distribution to or use by, any person or entity that is
a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, transmission, publication, availability or use would be contrary to law or regulation or which
would require any registration or licensing within such jurisdiction
This presentation is made solely for information purposes and does not constitute or form part of any offer for sale or invitation, or solicitation of an offer, to subscribe for or purchase any securities
and should not be treated as giving investment advice, and neither this document nor anything contained herein shall form the basis of or be relied on in connection with any contract or commitment
whatsoever. This presentation does not constitute a prospectus or other offering circular in whole or in part. Any decision to purchase or subscribe for securities should be made only on the basis of
the information contained in a prospectus or offering circular issued by the Company in connection with any such offering. This presentation has no regard to the specific investment objectives,
financial situation or particular needs of any recipient.
This presentation contains forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-
looking statements as a result of a number of risks, uncertainties and assumptions. Although the Company believes that such forward-looking statements are based on reasonable assumptions, it
can give no assurance that such expectations will be met. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost
of capital and capital availability, and competition from other companies. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of the
management on future events
Information and opinions contained in this presentation are provided for reference of the recipients only and are not to be relied upon as authoritative or without the recipient’s own independent
verification or taken in substitution for the exercise of the recipient’s own judgment. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or
reliability of the information contained herein. Any reference to past performance should not be taken as an indication of future performance. The information contained in this presentation is subject
to changes without notice. In furnishing the presentation, the Company has not undertaken to provide the recipient with access to any additional information or updates. None of the Company or the
banks warrant or guarantee whatsoever that this presentation will lead to the successful completion or consummation of any transactions
Accordingly, the Company and the banks disclaim any liability whatsoever in connection therewith and with any decisions that might be taken upon the basis of this presentation, directly or indirectly.
None of the Company, its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this material or
otherwise arising in connection with this presentation. In particular, the Company and the banks owe no duty to the recipient (except as required by applicable laws) to exercise any judgment on its
behalf as to the merits or suitability of any transaction. This document is not intended to provide and should not be relied upon for tax, legal or accounting advice, investment recommendations or a
credit or other evaluation of any transaction. The recipient agrees that the merits or suitability of any such transaction to its particular situation will be independently determined by the recipient
including consideration of the legal, tax, accounting, regulatory, financial and other related aspects thereof
The recipient of this presentation shall only use the information contained herein solely in the context of the evaluation of the proposals set out in this presentation and not for any other purposes,
commercial or otherwise. Subject to the above, this presentation and the contents thereof are strictly confidential and remains at all times the property of the Company

25
Attachments

26
Steel Production Process

Gas-based Route
Scrap Hot & Cold
Strip Car - White
Goods
Pellet DRI
Plate
Iron Ore
Pelletizing Plant Electric Arc
Direct Welded pipes
Furnace - Ships
Reduction
Plant
Liquid Coils
Steel
Slab,
Billet,
Bloom
Hot Rolled
Bar Rebar
Ladle
Coal-based Route Metallurgy
Rolling Mill
Cotinuous
Rods Tire Wire –
Casting
Machine Nut bolt
Lump Ore Liquid
Pellet
Scrap Steel
Tube Rounds
Pelletizing Plant Pipelines
Hot
Fine Ore Sinter Metal

Sintering Plant
Coke Basic Oxygen Structural Profile
Blast Furnace Furnace Shape
Coking Coal
Coke Oven Plant
Rails
PCI Coal
Railway
27
Solid and Experienced Management Team
 Appointed as President Director since 2015, with over 9 years in KS and 18 years in finance industry
Sukandar
 Previously Finance Director of KS since 2007, Director of PT Bahana Pembinaan Usaha Indonesia (SOE), Vice
President Director President Head of Corporate Banking Citibank, Surabaya and head of marketing CIMB Niaga Surabaya

Hilman Hasyim  Appointed as Director of Production & Technology since 2012, with over 30 years in KS
Director of Production &  Previously President Director of PT KHI Pipe Industries and several positions including GM of Rolling Mill, GM of
Technology R&D, Manager of Product Development, Superintendent of Quality Qontrol, and Engineer in Quality Control of KS

 Appointed as Director of Marketing since 2015, with over 28 years in KS


Dadang Danusiri
 Previously Director of HR & GA since 2007 and several positions including GM of Production Planning, Manager of
Director of Marketing Organization Planning and MS and Production Handling Manager of KS

 Appointed as Director of HR & Business Development since 2015, with over 28 years in KS
Imam Purwanto
 Previously Director of Logistics in KS, President Director PT Krakatau Engineering, Director of Business & Operation
Director of HR & Business PT Krakatau Engineering, and several positions including Manager of Engineering & Procurement and Deputy
Development Manager of Engineering & Procurement Division of PT Krakatau Engineering

 Appointed as Director of Logistic since 2015, with over 15 years in logistic & infrastructure industry
Ogi Rulino
 Previously Director of PT Portco Infranusantara, General Manager Business Development of PT Nusantara
Director of Logistics Infrastructure Tbk, and Regional Process Leader for ASEAN South PT Mitsui OSK Lines

 Appointed as Director of Finance since 2016, with over 19 years in finance industry
Tambok P.Setyawati S.  Previously worked in PT Bank Negara Indonesia (Persero) Tbk as SEVP Digital Banking, CEO Region Jakarta-
Director of Finance Kemayoran, CEO Region Semarang, Market Intelligence & Business Portfolio Leader, Project Manager BNI
Reformasi, and Indonesian Ministry of National Development Planning (Bappenas)

Our management possess significant expertise and proven track record in steel and related industry

28
Solid and Experienced Management Team (cont’d)
 Appointed as President Commissioner in 2016
Binsar H. Simanjuntak  Currently serving as Deputy PIP BPKP on Politics, Social, and Security since 2013
President Commissioner  Previously Commissioner of KS since 2013, Chair of the Audit Committee of PT Dirgantara Indonesia from 2012 to
2013

 Appointed as Commissioner in 2012


Tubagus Farich Nahril  Currently serving as President Commissioner of PT Tri Kharisma Harapindo, Serving as Senior Advisor PT Trans
Commissioner Production
 Previously Special Staff for the Vice President of the Republic of Indonesia from 2004 to 2009

 Appointed as Commissioner in 2015


Harjanto  Currently serving as Director General of Manufacturing Industrial Base at the Indonesian Ministry of Industry
Commissioner
 Previously Director of International Cooperation of Region I and Multilateral from 2010 to 2014

 Appointed as Commissioner in 2015


Roy E. Maningkas
 Previously Investor Relation Consultant for PT Bank Tabungan Negara in 2014, Investor Relation Consultant for PT
Commissioner Bukopin from 2010 to 2011 and Financial/Investor Relation Advisor for PT BNI 46 from 2008 to 2010

 Appointed as Commissioner in 2016


 Currently serving as Deputy for Resources and Infrastructure, Coordinating Ministry of Maritime Affairs since 2015
Ridwan Djamaluddin
 Previously Deputy Chairman for Natural Resource Development Technology for BPPT in 2010 to 2015, Director of
Commissioner
Center of Technology for Land Resources, Regional Development and Disaster Mitigation for BPPT in 2009 to 2010
and Head of Technology Center for Marine Survey for BPPT from 2003 to 2009

Oversighted by experienced and reputable shareholders’ representatives with


knowledge of industry best practice

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