Rajawali Nusantara Indonesia (PT RNI Group) 4th Czech-Asian Business Forum Praque Background Milestones 1964-1985 1986-1998 2001-2003 2004-2007 2008- Present Business Consolidated Business Expansion Selective Development Product Diversification Optimization and Stabilization Restructuring business unit Expansion coverage (outside Java) • Non-operating holding • Refocusing business unit • Creating value-add • By-product Development Internal business improvement Rehabilitation of production machinery Vision & Mission Vision To be the best company in agro-industry, pharmaceuticals-health care and trading business that prepare for the challenges and high competition • Strengthening competitive advantage • Financial restructuring • Enlarging business performance Mission • To achieve best improving performance through the creation of synergy among the three line of group business of agro-industry, pharmaceuticals-health care and trading. • To become professionally managed company based on high quality of product and excellent customer services as the reliable work place for the employee to perform, grow and develop to meet the stakeholders expectations. • To build competence and innovative companies to outperform in the era of competition • To become a company with high commitment to environmental sustainability Business Portfolios & Strategy Agro Industry • Sugar cane • CPO • Tea • Rubber industry Pharmaceutical & Healthcare • Healthcare • Pharmaceutical Corporate Strategy Sustainable Growth Core Competence Financial & Resource Improvement Manufacturing • Plastic industry • Leathers • Others Trading & Distribution 42 branches over Indonesia Financial Policy Generate internal return State-owned financial institutions Local / overseas banks Corporate Objective Business Unit Current Future Agro -Bulk Sugar and molasses - Revitalization, enlargement, and diversification (ethanol, retail) - CPO and Palm Kernel - Enlargement and diversification (organic fertilizer, fatty-acid industry) - Green tea and black tea Product diversification (Tea packaged and Extract green tea) - Local market (Indonesia) - Regional market (ASEAN and Australia) - National standard (c-GMP) - Regional standard approval (ASEAN Harmonization Policies) - Focus products portfolio (ethical, OTC, generic & agro medicine, condom & disposable syringe) - Focus products portfolio(ethical, OTC, Food suplement , healthcare, and especially agro medicine) - Trading: commodities composition -> 70% from internal products, 30% from external products - Increasing external products composition with selective and prospective principals - Distribution: pharmaceutical, healthcare, and consumer goods -Development coverage area, services, good trading practice -Regional player Pharmaceutical and healthcare Trading & Distribution Agro Industry Profile Company Factory, Location Product Capacity Profile PT PG Rajawali I 2 Factories (East java) PG Krebet Baru (Malang) PG Rejo Agung Baru (Madiun) Sugar, Mollases, 16.500 TCD PT PG Rajawali II 6 Factories (West java): PG Sindang Laut, PG Karang Suwung, PG Tersana Baru, PG Jatitujuh, PG Subang. Sugar, Mollases, 14.000 TCD PSA Palimanan Ethanol, Arak 30 KLPD PT PG Candi Baru PG Candi Baru (Sidoarjo) Sugar, Mollases 2.500 TCD PTP Mitra Ogan 2 Factories (Palembang/South Sumatra) CPO, Palm Kernel Two Factories CPO, areal plantation 26.452 Ha Rubber Existing areal plantation 983 Ha, additional areal in 2010 more/less 1.000 Ha Green Tea, Black Tea Existing areal plantation 1.500 Ha PT Mitra Kerinci Kerinci, Padang/West Sumatra Manufacturing, Trading & Distribution Profile Company Factory, Location Product Market Profile PT Rajawali Mitra Banjaran Bandung, West Java Condom, Disposible syringe Local and export market PT Phapros Tbk Semarang, Central java Ethical, OTC, generic & agro medicine Local (Hospital, Pharmacies and institution) PT Rajawali Nusindo Jakarta (42 branches around Indonesia) Pharmaceutical, Healthcare ,consumer Goods And Agro Products Local (Modern and Tra PT GIEB Bali Consumer goods Bali area (modern market & traditional market) PT Rajawali Tanjungsari Sidoarjo, East java Leather Local and Export PT Rajawali Citramass Mojokerto, East java Plastic sack Captive market group RNI (sugar industry & others) and non-captive market Business Opportunities with PT RNI Some of the potential business opportunities for the next two years. Business Unit Opportunity Agro Sugar Cane Industry (revitalization to optimizing capacity, Co-generation , Bioethanol and Building New Factory with 6.000 TCD at East Java) Crude palm oil ( areal expansion, Bio-Energy and new factory) Rubber ( area and factory expansion) Pharmaceutical and healthcare Pharmaceutical product (Co-marketing,cobranding and licensing) Diagnostic reagent(Product acquisition and licensing) Trading & Distribution •Warehousing • Product licensing • New principle •Commodity trading (sugar & CPO) SUGAR INDUSTRY ROADMAP OF RNI GROUP 2014 2013 2012 Process optimation 2011 2010 Process improvement -Infrastructure improvement (drainage and irrigation) -effisiencies - Strategic Partnership - Best Practices Application Finansial restructuring & Process standardisation - Innovative Product Development (bioethanol, cogeneration,dll) - Standardisasi on farm & off farm - Improving Productivity - Debt Equity Conversion - Improving Competitiveness - Selective investment - Finance Resources Development Revitalization - Land and resources expantion - Product and process inovation - Market penetration - Cost efficiencies and effectivity - Improving product portfolio to ritel market Excellent Company with Professionally Managed Value Creation - Business Sustainability - Improving economic of scale - Business enlargement Thank You