COMPANY PROFILE PT. PAN BROTHERS Tbk. & SUBSIDIARIES

Transcription

1 COMPANY PROFILE 2017 PT. PAN BROTHERS Tbk. & SUBSIDIARIES 1

2 CONTENTS COMPANY OVERVIEW 3 FINANCIAL OVERVIEW 19 APPENDIX 23 2

3 COMPANY OVERVIEW 3

4 PT. PAN BROTHERS Tbk. Vision: TO BE AN INTEGRATED AND WORLDWIDE APPAREL SUPPLIER Indonesia s largest listed garment manufacturer. Well-established business founded in 1980 and listed on the Indonesia Stock Exchange since Intense focus on exports markets include US, Europe, Asia, Canada, Australia and New Zealand. Long-standing relationships with numerous top global fashion and apparel brands, while maintaining strong work ethics and CSR. Plants located in Tangerang, West Java and Central Java with 26,626 sewing machines and a production capacity of 90 million Garments annualy. Selective expansion in both upstream and downstream segments. 4

5 GROUP STRUCTURE PT. Trisetijo Manunggal Utama 27.98% PT. Ganda Sawit Utama 19.86% Public 52.16% PT. Pan Brothers Tbk PT. Pancaprima Ekabrothers (99.91%) PT. Eco Smart Garment Indonesia (85.00%) PT. Hollit International (51.04%) Cosmic Gear Limited (51.00%) PT. Ocean Asia Industry (51.00%) PT. Prima Sejati Sejahtera (99.00%) Continent 8 Pte. Ltd. (51.00%) PT. Teodore Pan Garmindo (51.00%) PT. Apparelindo Prima Sentosa (99.00%) PT. Victory Pan Multitex (51.00%) PT. Berkah Indo Garment (99.00%) PB International B.V. (100.00%) PB. Island Pte. Ltd. (51.00%) 5

6 GROUP OVERVIEW Business Garment Manufacturing Group Companies PT Pan Brothers Tbk PBT PT Pancaprima Ekabrothers PPEB PT Eco Smart Garment Indonesia ESGI PSS PT Teodore Pan Garmindo TPG PT Berkah Indo Garment BIG Brief Description Started in Manufactures Woven Garments such as Padded and Light Weight Jackets, Pants, Shorts and Casual Pants. Acquired in Manufactures Technical, Functional and Active Wear Jackets and Outer Wear suited for Snow Boarding, Skiing, Jogging, Hiking, and other Sports and Outdoor Activities Established in 2013 as a JV with Mitsubishi. Planned to build 6 garment manufacturing facilities 4 Facilities already built in And expansion of ESGI expected to be done in Manufactures woven garments Established in Manufactures Technical, Functional and Active Wear Jackets and Outer Wear suited for Boarding, Skiing, Jogging, Hiking, Snow and other Sports and Outdoor Activities Established in Manufactures Cut and Sewn Knit Garments such as Polo Shirts, Golf Shirts, Track Suits, Sweat Suits Established in Manufactures Woven Garment such as Casual Shirts, Tops, Casual Bottoms, Casual Shorts, Denims, Garments Dyeing. 6

7 GROUP OVERVIEW Business Product Development and Marketing Group Companies PT Hollit International Hollit Continent 8 Pte Ltd C8 Cosmic Gear Limited Cosmic PBL PB Island Pte. Ltd PBL PB International B.V. PB Fashion B.V. PBF Brief Description Acquired in A product development company focusing on the development and creation of latest trends in styling, finishing and material. Also manages the collection and production of world renowned fashion brands. Incorporated in Singapore. Engages in sourcing activities that allow the group s products to reach wider international markets. A product development company focusing on the development and creation of latest trends in styling, finishing and material. Incorporated in Hong Kong to help the group better cater the international market. Engages in product development and material sourcing. Incorporated in Singapore. Engages in sourcing activities that will allow the Group s products to reach more international markets. A product development company focusing on the development and creation of latest trends in styling, finishing and material. Incorporated in Netherlands PBF is in the business as an agent and engages in garment trading activities. PBF was set up to support the group s activities in Europe. 7

8 GROUP OVERVIEW Business Sewing & Embroidery Thread Fabric Supply Retail & Others Group Companies PT Victory Pan Multitex VPM PT Ocean Asia Industry OAI PT Apparelindo Prima Sentosa APS Brief Description Established in Produces various Sewing and embroidery thread. Started in Produces various kinds of knit fabrics, such as single knits and double knits (Single Jersey and Lycra Single Jersey, Pique and Lacoste, Fleece / French Terry Interloop / Lycra Interloop, Jacquard Jersey) and flat knits. Started in Incorporated in Indonesia to engage in apparel retail business Launched its women s fashion brand, ZOE label in JV men s fashion brand : S n P, Asylum, F T L, etc. in Launched online brand Wastu in

9 PBRX MILESTONES Established PBT (Cut & Sewn Knit OEM Factory) a) Expansion of PPEB at Boyolali (Woven Factory) b) Expansion of PBT at Sragen (Woven Factory) a) Expansion of PBT at Boyolali (Woven Factory) b) Expansion of PPEB at Boyolali (Woven Factory) Set up OAI (Apparel material manufacturer) 2012 a) Set up TPG at Bandung (Cut & Sewn Knit Factory) b) Set up VPM at Bandung (Sewing and Embroidery thread) c) Set up PSS at Boyolali (Woven Factory) Set up PB Island Pte. Ltd. (Product Development) a) Set up Berkah Indo Garment at Ungaran and Demak (Woven Factory) b) Set up PB International BV (Buying Agent and Marketing Office ) c) TPG Tasik expansion Set up Cosmic Gear (Product Development) 2005 a) Set up APS (Apparel Retail & Brand etc) b) Set up ESGI (Woven Factory) 1980 Acquired PPEB (Light & Heavy Woven Jacket Factory) Acquired Hollit (Product Development Company)) 9

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11 INDUSTRY OUTLOOK Strong Outlook Despite Global Uncertainties Textile and garment exports from Indonesia are expected to grow from US$11.9bn in 2016 ( /04/12/ /) to US$ 75.3bn in Proportion of Indonesian exports in total global demand to rise from 1.7% in 2016 to 5% in Indonesian Government Support on Textile & Garment Industry Key Asian Garment Suppliers Face Growth Constraints Economic Policy Packages issued for labor intensive industries providing corporate & payroll tax incentives, electricity tariff discounts. FTA with the European Union expected to be signed in 2018 Government has expressed support to strengthen the domestic manufacturing industry and reducing dependence on commodity based exports China faces rising labor cost and lack of labor supply. India & Bangladesh are constrained by inadequate infrastructure and rising labor wages. Vietnam & Cambodia have smaller workforce relative to Indonesia and are constrained by rising labor cost. Indonesian Retail Outlook Indonesia has huge population of more than 260 Million People. In 2030, it is expected the middle class income earners will reach 141 mio peoples from 2016 was 74 mio peoples. Source: KemenPerin; Index Valuation Division API Publication; Goverment Policy Package;PWC Outlook; Boston Consulting; BPS 11

12 INTEGRATED BUSINESS MODEL Raw Material Production Textile Manufacturing Apparel Manufacturing Branded Apparel Players Retailers Fibre Production Spinning, Fabric weaving, knitting, finishing Designing, cutting, sewing, buttonholing, ironing Marketing and distribution Retail Outlets Upstream expansion Garment Manufacturing Downstream expansion Joint Venture with Mitsubishi to set up Actively pursuing JV / M&A 6 factories in Central Java area, with 4 Set up product development company. opportunities into fabric mills sector. factories already built in 2014, and Established Apparelindo Prima Sentosa another 2 factories in 2019 Set up Prima Sejati Sejahtera in Boyolali in Central Java in 2014 to increase presence in apparel retail business, with in-house brand, ZOE Label, SnP, FTL, Asylum and Wastu. Set up Teodore Pan Garmindo in West JV / M&A with some local brands and Java in 2014, expansion at Tasikmalaya multi-brand retailer. in 2016 and another expansion in

13 KEY PILLARS OF GROWTH Upstream Backward Vertical integration Manufacturing Expansion Downstream Channel Expansion Process Optimalization Expansion into new sectors, such as: Fabric mills (synthetic woven fabric) Target route: JV or M&A Domestic JV with Mitsubishi (ESGI) increasing capacity to another 21 million pcs with total 48 million pcs by TPG (Teodore Pan Garmindo) expansion at West Java BIG (Berkah Indo Garment) at Central Java Year 2019 total setup capacity expected 117 million pcs. Regional Expansion to other countries to improve access to target markets and avail of local competitive advantages. Target countries: Vietnam and other prospect countries. Continuous expansion of brands, ZOE Label, SnP, FTL, Asylum and Wastu. Joint venture with local and overseas partners for retail brands. Collaboration with global fashion brand. Planning to enter the e- commerce sector. Target route: JV or M&A Automation in some process. Increasing capability in garment embroidery facility, garment printing facility, and garment wash / laundry facility. 13

14 GARMENT MANUFACTURING Production and distribution spread across key Asian markets Key production facilities Tangerang Hong Kong Ungaran Demak Boyolali Sragen Taiwan Vietnam Marketing Office Rep offices Plants Singapore Indonesia Indonesia Manufacturing Capabilities in Indonesia years 2017 Category Total Machines (Units) Manufacturing Capacity ( 000pcs) Indonesia production facilities are situated across Tangerang in Banten; Bandung and Tasikmalaya in West Java; Boyolali, Sragen, Demak, Ungaran in Central Java Mix catagories (Technical, Woven Garment and Cut & Sewn Knit) 26,626 90,000 Strategically positioned throughout Asia with offices in Taiwan, Singapore and Hong Kong to serve customers in regional & global markets The largest garment manufacturing capabilities in Indonesia Maintains close proximity to both customers regional offices in Hong Kong and Singapore as well as key fabric suppliers in Taiwan 14

15 ACCREDITATIONS AND AWARDS ACCREDITATIONS ISO 9001:2015 SA 8000 ISO 14001:2004 ISO 9001:2015 ISO WRAP GSV SA 8000 OHSAS C-TPAT Note: ISO 9001 : Quality Management System ISO : Environment Management System WRAP : Workplace Environment Management System GSV similar to C-TPAT : Global Security Verification Program SA 8000 : Social Accountability Management System OHSAS : Occupational Health & Safety Management System 15

16 ACCREDITATIONS AND AWARDS AWARDS Indonesia Export Award 2016 Green Industry Award 2017 Top 5 GCG in Textile & Garment Award 2017 The Top 50 Companies 2017 TOP CSR 2017 on Garment and Textile Industry Excelence Public Company 2017 Most Innovative Business 2017 Asia Corporate Excelence & Sustainablility Fastest Growing Company 2017 Green Industry Award 2017 from Tangerang Government 16

17 CORPORATE SOCIAL RESPONSIBILITY Providing sewing Trainers to Vocational Training Center Conducting Science and Technology Olympics regularly Awarding Scholarships to 3000 high performing High School students from Central Java (step one ) Awarding Scholarships to 100 University of Indonesia Students for the bachelor degree program ( ) Organizing Employment programs on Synergy investment in association with Madrasahs and PonPes Receiving students on internships both technical and management. Sponsoring medical trip to Papua organized by The HOPE Organizing health education through awareness programs for cancer, HIV, etc Donating to victims of natural disaster. Organizing blood donation camps on regular basis. 17

18 CORPORATE SOCIAL RESPONSIBILITY Providing Sewing Trainers to Vocational Training Center Conducting Science and Technology Olympiads regularly Awarding Scholarships to 3000 high performing students from Central Java High Schools ( ) Awarding Scholarships to 100 University of Indonesia Students for the bachelor s degree program ( ) Organizing employment programs on Synergy investment in association with Madrasahs and PonPes Sponsoring medical trip to Papua organized by The Hope Organizing health education through awareness programs for Cancer, HIV etc 18 Donating to victims of natural disasters Organizing blood donation camps on a regular basis

19 FINANCIAL OVERVIEW 19

20 GLOBAL PRESENCE BY SALES 0.33% 1.12% 1.05% 1.07% 4.59% 38.78% 30.43% 44.44% 50.79% 55.70% 52.63% 28.97% 19.88% 16.83% 16.78% OTHERS ASIA EUROPE USA 30.46% 25.47% 28.29% 26.40% 26.00%

21 FINANCIAL HIGHLIGHTS SALES (US$m) GROSS PROFIT (US$m) / SALES (%) 12.3% 11.7% 12.8% 13.5% 13.9% EBITDA (US$m) / SALES NET PROFIT (US$m) / SALES (%) 7.7% 6.4% 6.8% 8.1% 7.7% (%) 3.1% 2.8% 2.1% 2.8% 1.4%

22 FINANCIAL HIGHLIGHTS TOTAL DEBT & CASH (US$m) DEBT / EQUITY (x) Total Cash Total Debt TOTAL ASSETS (US$m) OUTSTANDING SHARES (mn shares) , , , , ,

23 APPENDIX 23

24 SUMMARY Income Statement (US$m) Net sales % growth COGS (297.9) (299) (365) (416.9) (472.7) % of sales (87.7) (88.3) (87.2) (86.4) (86.1) Gross profit % margin Selling expenses (5.5) (5.3) (8.5) (13.3) (17.3) % of sales (1.6) (1.6) (2.0) (2.7) (3.2) G&A (17.5) (20.8) (28.0) (29.9) (31.3) % sales (5.2) (6.1) (6.7) (6.2) (5.7) Operating profit % margin % growth Net interest expense (4.7) (0.9) (3..8) (6.3) (15.5) Other income (expenses) (1.8) 2.6 (1.6) Profit before tax Income tax expense (2.3) (3.6) (2.9) (4.9) (3.1) Profit for the year % margin % growth Net Profit (Loss) attributable to equity holders % margin

25 SUMMARY Balance Sheet (US$m) 2013* 2014* Cash and bank balances Trade receivables Inventories Other current assets Total current assets Tangible assets Intangible assets Other Total non-current assets Total assets Short-term borrowings Trade payables Other current liabilities Total current liabilities Long-term borrowings (Syndication, Bonds, Etc) Other long-term liabilities Total non-current liabilities Total liabilities Shareholders' funds Total shareholders' funds Non-controlling interest * As restated on PSAK No.24 (Revised 2013) 25

26 RETAIL Z O E label ZOE label side with STYLE over trends, think TIMELESS is never outdated. ZOE label don t believe MINIMALISM as underdressed ZOE label is confident to let our personality shines and use our clothes to enhance it. For us, the charm is in the MIX. The essence is EFFORTLESS CHIC. ZOE label is an INDONESIAN BRAND, but ZOE label source our fabrics from around the world. Our design, sourcing & production teams serve not us only, but also well-known international brands. ZOE label take pride in our VALUE & QUALITY. Website: zoethelabel 26

27 RETAIL Founded in 2017, Wastu is an Indonesian brand specializing in the elegantly understated piece and crafted from the ideas of an Indonesian fashion designer, Auguste Soesastro. Taken from Javanese Sanskrit, Wastu means 'Architecture', which has been Auguste's interest and has inspired him to harmonize architectural lines, geometry, and structures into wearable items. Wastu embodies a way of life in stylish collections affordable for any budget. Website: 27

28 RETAIL Salt n Pepper is a contemporary men casual brand for upper middle class. Inspired by designs and trends in the USA and Europe, Salt n Pepper is tailored to bring the latest trends in a perfect fitting for Asian sizes. It s a catchy brand, unisex, global meaning and easy for people to remember Just like how food is tasteless without salt and pepper, we believe that clothes need to have details added to make it look great Other brands are FTL and Asylum Website: 28

29 GARMENT MAKING PROCESS Warehouse Fabric Inspection Lab Test Cutting Sewing Inspection Metal Detection Embroidery/Print 29

30 PT. Pan Brothers Tbk. Address : Jl. Siliwangi No. 178, Jatiuwung, Tangerang 15133, Indonesia Phone : Fax : apbrxswk@pbrx.co.id/ pbt@pbrx.co.id Website : 30

31 STRICLY PRIVATE AND CONFIDENTIAL DISCLAIMER This document is intended to be general information for discussion purposes only and does not create any legally binding obligations on the part of PBRX. The information contained in this document is based on materials we believe to be reliable, however we do not represent that it accurate, current, complete, or error free. Information in this document constitute our judgment as of the period of preparing the document and are subject to change without notice. Any opinion in this information may not necessarily represent the opinion of PBRX or any entity in the PBRX and Group. Any person and entity receiving this information shall treat the information as confidential and not misuse, copy, disclose, or distribute, in whole or in part, without PBRX express written permission. PBRX disclaims all liability for any direct, indirect, consequential or other losses or damages incurred by anyone that may arise from any reliance on this document or for the reliability, accuracy, completeness or timeliness thereof. 31