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PT Inocycle Technology Group Tbk (“INOV”)
3Q19 Investor Presentation
TURNING WASTE INTO RESOURCES
Jakarta, 1 November 2019
TABLE OF CONTENTS
Company Overview 3
Our Raw Material 10
Products & Plants 14
3Q19 Financial Highlights 22
Key Investment Highlights 27
2
33
We Turn Waste Into Resources
Company Overview
4
VISION
MISSION
Vision, Mission & Values
“To become the Biggest Sustainable Eco-friendly
Recycled Fiber Company that produces world-class
quality product.”
• To produce world class eco polyester fiber with industry
professionals
• To expand business through Plastic Pay across Indonesia in a
sustainable way
• To provide significant contribution in reducing national waste
pollution and creating an ideal and sustainable living environment
• To establish a nationwide production and sales network covering
all major cities in Indonesia for recycled fiber business
Palembang
Tangerang
Salatiga
Karanganyar -Solo
Mojokerto
Business Overview
5
The company's main business is the production and sales of recycle polyester staple fiber (Re-PSF). It purchases waste PET bottles as its
main raw material and directly produces into bottle flake, which is used as raw material for Re-PSF. Re-PSF accounts for about 75% of total
sales.
Current Capacity and UtilizationLocation Product Capacity Utilization
Tangerang -
BantenRe-PSF 10,200 Tons 85%
Karanganyar Solo
– Central JavaRe-PSF 10,200 Tons 95%
Mojokerto – East
JavaRe-PSF 13,200 Tons 90%
Salatiga – Central
JavaNon-Woven 2,000 Tons 82%
Palembang –
South SumateraNon-Woven 1,800 Tons 75%
Sales and Distribution
Approximately 47% of Inocycle total revenues are sold to
affiliated parties to be processed into another product such as
Geotextile and Bedding Products and sold to their customer.
While the other 53% are sold directly to our customer.
• Domestic: Jabodetabek, Central Java, East Java and West
Java, and South Sumatera.
• International: United States of America, Europe, Asia,
Africa and Australia
Customer Mix
• Through Affiliated Parties :
• Direct :
and Furniture, Garment and Toys Manufacturers
Shareholder’s Composition
Data per: 3Q19
PT Hilon Indonesia
45.54%PT Samudera Industri
20.83%
Sandiana Soemarko
11.24%
Public
16.07%HSBC – Fund Service A/C
6.32%
PT Urecel Indonesia
45,80%
52,40%
99,99%
6
Inocycle at a Glance
7
PT Inocycle Technology Group ("Inocycle") was established in 2001, under the name of PT Hilon Felt with its first
factory in Tangerang. Inocycle is part of the Hilon Indonesia group, which is one of the largest integrated Non
Woven producers in Indonesia with more than 40 years of experience in its field and production quality with
international standards. Inocycle itself is a company engaged in the production of Recycle Polyester Staple Fiber
(“Re-PSF”) by processing recycled plastics with zero waste and considered as the largest Hollow Conjugated
Polyester Staple Fiber producer in Indonesia. Re-PSF is the core of many and diverse ranging from nonwoven
manufacturing to Automotive, construction, agriculture, and infrastructure, Garment and Furniture. Inocycle is the
only company in Indonesia that is certified to the Global Recycled Standards (GRS) in Recycled Polyethylene
terephthalate (PET) bottles.
More Than 1 Billion Bottle
Sourcing PET bottles from Indonesia and in the
region where the second largest plastic waste is
produced, then we recycle them and export as
Eco-polyester fiber
Global Recycle Standard
The only Company with Global Recycled
Standard in Indonesia
More than 10 Countries
Exporting Eco-polyester fiber to more than 10
different countries
Eco-friendly fiber
Producing currently 3000 ton per month of
value added eco-polyester fiber, and the
production can scale up through setting up
factories in different cities.
Inocycle is an Indonesian clean-
tech company focusing on
managing and recycling PET and
other plastic waste. A global solution
to a local problem. Transforming
rubbish into resources.
Certification
Key Milestones
8
2001
2011
2012
2013
2014
2016
2018
2019
PT Hilon Felt
Indonesia was
established,
with its first
factory in
Tangerang
which has the
capacity to
produce 3.3
million meters
Of non woven
products
Karanganyar
plant was
established with
annual Fiber
production
capacity of
8,000 tons
Karanganyar
plant start to
produce Fiber
with annual
capacity of
7,200 tons
Expansion of
Karanganyar
plant with total
annual fiber
production
capacity of
10,200 tons
Mojokerto
plant is
established
with annual
fiber
production
capacity of
6,000 tons and
Inocycle
obtained
Bureau Veritas
Certification
Expansion of
Mojokerto plant
with total annual
fiber production
capacity of 13,200
tons and
Tangerang plant
start to produce
fiber with total
annual production
capacity of 10,200
tons. In the same
year, Inocycle has
also managed to
obtained California
65 and Intertek
Certification
Palembang and
Salatiga plant
were
established to
produce
homeware and
non woven
product
PT Hilon Felt
change its
name to PT
Inocycle
Technology
Group and
obtained GRS
Certification
Management Team
9
Jung Hyo ChoiPresident Commissioner
Dr. Ir. Widhyawan PrawiraatmadjaIndependent Commissioner
Wonhyuk Choi
Director
Victor Choi
Director
Suhendra Setiadi
Business Dev. Director
Jaehyuk Choi
President Director
Yoon Chong Hyun
Finance Director
Seung Koo Yang
Director
CHAPTER 2:
Products & Distribution
10
Products, Distribution & PlantsOur Raw Material
How Re-PSF is different with Virgin PSF
11
To produce Fiber or Re-PSF products, Inocycle uses Recycled PET (Polyethylene terephthalate) bottle as its main raw material, where virgin PSF
use crude oil. The raw materials can be in form of bottles or flakes. While the raw material for Non Woven products and Homeware Inocycle comes
from Fiber or Re-PSF produced by Inocycle. At present, 15% of Inocycle's raw material comes from affiliated parties, 8% comes from Korean
petrochemical companies, while the rest comes from third parties with a composition of less than 3% for each supplier. Inocycle does not depend on
one particular supplier.
Crude Oil
PTA MEG
PET Resin
PET Waste
PET Bottle
Bottle Flake
Re-PSF
Non-Woven
Garment
Bedding Goods
Automotive
Construction
Polyester Staple
Fiber Application
Raw Materials (Cont’d.)
12
The purchase price of waste PET bottles has risen from 5,000 Rupiah per Kg in early 2013 to 6,000 Rupiah in early 2014, but dropped slightly to
4,000 Rupiah at the end of 2016 due to falling oil prices and economic slowdown. However, due to export demand, it has risen rapidly from the
second half of 2016 to the first half of 2017, rising to an average of 7,000 Rupiah.
In May of 2017, it began to decline rapidly due to the restriction of imports due to environmental regulations in China. Even in China, re-PET
import prices have risen since mid-2016 and have increased rapidly from April 2016 to April 2017, but they are beginning to decline again,
which is in line with the domestic price trend in Indonesia.
In 2018, the average purchase price slightly increase due to the commence of fiber production in Tangerang Plant. The plant in Tangerang
require higher grade and larger volume of waste PET bottle, resulting on increased average purchase prices in the late 2018. In the first quater
of 2019, the average purchase price has decreased to the level of 6,100 Rupiah per Kg.
(In IDR)
0
1000
2000
3000
4000
5000
6000
7000
8000
Jan
-13
Ap
r-1
3
Jul-
13
Oct
-13
Jan
-14
Ap
r-1
4
Jul-
14
Oct
-14
Jan
-15
Ap
r-1
5
Jul-
15
Oct
-15
Jan
-16
Ap
r-1
6
Jul-
16
Oct
-16
Jan
-17
Ap
r-1
7
Jul-
17
Oct
-17
Jan
-18
Ap
r-1
8
Jul-
18
Oct
-18
Average Purchase Price of Waste PET Bottle
Polyester Staple Fiber Manufacturing Process
13
Waste PET
Sorting
Crushing
Washing
Bottle Flake
Drying
Spinning
Stretching
Setting &
Cutting
Bale Packing
PET Bottle Recycle
OperationStaple Fiber
Production
CHAPTER 2:
Products & Distribution
14
Products & Plants
15Recycle Polyester Staple Fiber Product
We turn Polyethylene Terephthalate (PET) waste
bottles into Recycle Polyester Staple
Product (“Re-PSF”). We are the only
company in Indonesia that is certified to the
Global Recycled Standards (GRS) in
this process. Re-PSF is the core of many and
diverse industry’s raw material ranging from
automotive, construction, agriculture,
infrastructure, garment and furniture.
Inocycle Product - Fiber
16
Fiber produced by Inocycle are of high quality that can be used for pillows, dolls,bedding, furniture, carpet/automotive interior and non-woven/woven products.The fiber produced by Inocycle can be divided into three types: HollowConjugated Fiber, Solid Fiber and Special Function Fiber. Most of the fibersproduced by Inocycle are Anti Static, Anti Bacterial and Flame Retardant.Inocycle fiber is regarded as the closest quality to the virgin grade that peoplecan buy in the global market.
Plant Location and
Production Capabilities
Tangerang - Banten PlantArea size: 65,423 m2
Production Area: 28,156 m2
Max Capacity: 10,200 tons
Facilities: Fiber Machine
Karanganyar Solo – Central Java PlantArea size: 44,865 m2
Production Area size: 14,085 m2
Max Capacity: 10,200 tons
Facilities: Crusher, Fiber Machine, Washer
Mojokerto – East Java PlantArea size: 22,884 m2
Production Area size: 7,222 m2
Max Capacity: 13,200 tons
Facilities: 1 Washer, 3 Boiler, 2 Fiber Machine
Hollow Conjugated Fiber
Solid Fiber
Special Function Fiber
Sales & Distribution
• Domestic: Jabodetabek, Central Java, East Java
and West Java (60%)
• International: United States of America, Japan,
Phillipines, India, Saudi Arabia, Morocco,
Germany, Spain, Italy and Australia (40%)
Products
Application
Fiber products sold by Inocycle can be applied or reprocessed into severalproducts that can be found in various places, including bedding and homewareproducts, garment, automotive, insulation to withstand heat or sound andGeotextile (Woven & Non-Woven).
Product - Fibers
17
Diverse Re-PSF from Waste Bottle to Our Customer’s Product
From Transparent Waste Bottles From Green Waste Bottles From Blue Waste Bottles
Filling for Jacket, Toys, Pillow, Shoes, Automotive, Etc.
18
In addition to Fiber, Inocycle directly produce and sell Geotextile non-wovenproducts which are made using Re-PSF. Non Woven Geotextile itself is a productused in various industries such as mining, construction, agriculture,manufacturing, to infrastructure. This product can be used as erosion,separation and stabilization, protection, filtration and drainage.
Plant Location and
Production Capabilities
Salatiga – Central Java PlantLand Area size: 28,644 m2
Production Area: 9,479 m2
Max Capacity: 2,000 tons
Product: AR, FA, Hal, HDP, CF
Facilities: HDP Line, CF Line, Sewing Machine, Press
Machine, Blower, Quilting Machine, Comforter Machine
Palembang – South Sumatera PlantArea size: 137,163 m2
Production Area: 13,766 m2
Max Capacity: 1,800 tons
Product: HDP, HP, Padding, HD, Carded Fiber
Facilities : HDP Line, CF Line, Sewing Machine, Press
Machine, Blower, Quilting Machine, Comforter Machine
Sales & DistributionCentral Java, East Java and South Sumatera
Products
In selling non Woven geotextile products, Inocycle uses its own brand thatreflects the best quality
Brand
Product Group Common Name Type of products (internal)
Chemical Bonding Padding AR, FA, Hal etc.
Physical Bonding Needle Punching NP, HP, HD, Geotextile etc.
Thermal Bonding High Density Padding HDP, HDX, HRA etc.
Inocycle Product – Non Woven
Product – Non-Woven
19
Non-Woven Products from Re-PSF and its Diverse Functions
Geotextile for Construction Non-woven for Cars
Non-Woven
• Non-woven Products can be used for various industries such as garments, automotive and
homewares.
• Geotextile Non-woven can be used for concrete curing, construction protection, filtration,
separation, drainage, stabilization, geo bag, agriculture etc.
20
Inocycle also produce some household items such as bedclothes that are madefrom Re-PSF. Inocycle has established vertical integration that covers upstreamand downstream business of PSF, and it has shown stable business activities.
Plant Location and
Production Capabilities
Palembang – South Sumatera Plant
Area size : 137,163 m2
Production Area : 13,766 m2
Products : Pillow, Bolster, Mattress, blanket, Bed
Cover Set, Carpet, Quilting, Mattress Protector
Facilities : HDP Line, CF Line, Sewing Machine, Press
Machine, Blower, Quilting Machine, Comforter
Machine
Salatiga – Central Java Plant
Land Area size : 28,644 m2
Production Area size : 9,479 m2
Products : Pillow, Bolster, Mattress, blanket
Facilities: HDP Line, CF Line, Sewing Machine, Press
Machine, Blower, Quilting Machine, Comforter
Machine
Sales & DistributionCentral Java and South Sumatera
ProductsPillow, Bolster, Mattress, blanket, Bed Cover Set, Carpet, Quilting, MattressProtector
Inocycle Product – Bedding
Product - Bedding
21
As Smooth As Cloud
Pillow Blanket
Bolster Mattress
Under brand Hippo, we create and
sell home ware products.
22
3Q19 Financial Highlight
3Q19 Financial Highlight
23
298
380
9M18 9M19
Revenue
23
48
9M18 9M19
Operating Profit
5
24
9M18 9M19
Net Profit
Expressed in billion IDR
150
237299 301
11264 66 59
30 26 29 1823 0.1 1.5 1.6
2016 2017 2018 9M19
Fiber Non Woven Homeware Others
Revenue Breakdown
3Q19 Revenue Breakdown & Composition
24
9M18 9M19
Others
Home Ware
Non Woven
Fiber
28% yoy
Expressed in billion IDR
IDR 298 / 100% IDR 380 / 100%
IDR 220 / 74%
IDR 53 / 18%
IDR 24 / 8%
IDR 0.3 / 0.1%
IDR 301 / 79.2%
IDR 59 / 15.6%
IDR 18 / 4.8%
IDR 6 / 0.4%477% yoy
-23% yoy
12% yoy
36% yoy
375 414 573712
2016 2017 2018 9M19
3 Years Financial Trend
25
Asset
Expressed in billion IDR
240 264406 380
2016 2017 2018 9M19
135 150 166
333
2016 2017 2018 9M19
Liability Equity
715 16
24
2016 2017 2018 9M19
315 327 396 380
2016 2017 2018 9M19
21 2946 48
2016 2017 2018 9M19
Revenue Net Profit Operating Profit
Financial Ratios
26
2% 4% 3% 3%5%
10% 10%7%
2016 2017 2018 9M19ROA ROE
178% 176%
244%
114%
64% 64% 71% 53%
2016 2017 2018 9M19
Debt to Equity Debt to Asset
7% 9%12% 13%
2%5% 4% 6%
2016 2017 2018 9M19
Operating Margin Net Profit Margin
ROA & ROE Debt to Equity & Debt to Asset Operating Margin & Net Profit Margin
150%165%
100%
164%
90%107%
57%
115%
14% 19% 19%41%
2016 2017 2018 9M19Current Ratio Quick Ratio Cash Ratio
Liquidity
27
Key InvestmentHighlights
Key Investment Highlights
28
01
02
03
04
05
Full Support From Parent Company
High Barriers To Entry
Robust Relationship With
Customers
The Largest Hollow Conjugated
Re-PSF Producer In Indonesia
Growing Markets with
Opportunities from Domestic and
Global Condition
29
Growing Markets with Opportunities from Domestic Demand and Global Condition
10.6
14.4
17.6
21.4
2012 2015 2018 [E] 2022 [E]
6.7
10.4
13.6
21.7
2012 2015 2018 [E] 2022 [E]
Indonesia Polyester Staple Fiber is recognized as one of the
best quality products.
The demand for the staple fiber in Indonesia is estimated to
increase along with the increasingly GDP growth and the huge
population which could be translated in the rising spending. The
demand for the Re-PSF in Indonesia also can be described
through its various application of non-woven consumption in
Indonesia at automotive sector, construction and civil works,
bedding and apparel sector.
Estimated Indonesia Non-Woven Automotive Consumption
(in Kilotons)
Source : Company, Smithers Apex, PwC Analys Shinhan Sekuritas Indonesia,
Indonesia Non-Woven Consumption in Civil Engineering
(in Kilotons)
Source : Company, Smithers Apex, PwC Analys Shinhan Sekuritas Indonesia
Indonesia Non-Woven Consumption (in Kilotons)
Source : Company, Smithers Apex, PwC Analys Shinhan Sekuritas Indonesia
1
8999
112 116 118
138
154162
168 172
62 7372 74
88
13 18 22 2227
13 14 15 16 17
Output Consumption Imports Exports
30
Growing Markets with Opportunities from Domestic Demand and Global Condition (Cont’d)
3.2
5.6
6.9
12.5
2012 2015 2018 [E] 2022 [E]
The consumption of nonwoven building/roof is estimated to
increase by 12% (CAGR) to 10.85 kilotons at 2022 or reflecting 2.x of
GDP growth as reflected at the historical pattern.
The potential growth is also coming from nonwoven hygiene that
has been grew by 7.7% to 57.1 kilotons at 2022 from 2018 at 41
kilotons. The potential demand from nonwoven hygiene is believed
would be expanded further on the back of the growing Indonesia
population of infant and adult above 70 years old that at 31.6mn
last year and forecasted to pick up by 1.4% CAGR to 34.5mn people
at 2024. This segment would need the nonwoven hygiene as a
material for diaper both for adult and infant.
Indonesia Non-Woven Building/Roof Consumption (in
Kilotons)
Source : Company, Smithers Apex, PwC Analys Shinhan Sekuritas Indonesia
30.3 30.7 31.131.6 32.0
32.5 32.933.4
33.934.5
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Indonesia Infant and Adults Above 70 years Old Population
Estimation
Source : Company, Smithers Apex, PwC Analys Shinhan Sekuritas Indonesia,
Indonesia Non-Woven Hygiene (in Kilotons)
27.3
34.4
41.0
57.1
2012 2015 2018 [E] 2022 [E]
Source : Company, Smithers Apex, PwC Analys Shinhan Sekuritas Indonesia
1
31
Growing Markets with Opportunities from Domestic Demand and Global Condition (Cont’d)
The application of the PSF as
the substitution to the cotton
in the apparel market is
estimated to grow steadily.
The Inocycle as the re-PSF
producer has become the
prominent supplier for non-
woven materials in Indonesia
ranging from jackets, shoes,
hats and bags. The middle
income growth couples with
the large population would
provide the large opportunity
for the Inocycle to expand its
business. The total market
size as indicated by apparels
revenue in Indonesia for male
and female amounted to
US$5,340mn in 2018 or up by
5%yoy. The total apparels
market is estimated to grow
by 5.9% at USD 6,245mn to
2021 by assuming the same
pace growth.
Indonesia bedding related product and
mattress as the application of recycled
polyester fiber and garment fabric is
estimated to increase by 4.3% CAGR from
27.9 kilotons at 2018 to 34.4kilo tons at
2022. The growth of hotel and tourism has
also triggered the demand for the bedding
goods product. 70% of the spring bad
producer in Indonesia used inocycle
nonwoven product.
30712507
37203963
42594542
48075088
53405656
59316245
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F 2021F
Indonesia Market Size for Female and Male
(in mn USD)
Source : Bank Indonesia, Shinhan Sekuritas Indonesia, Estimation
22.7
27.1 27.9
34.4
2012 2015 2018 [E] 2022 [E]
Non-Woven Upholstery/Beddings
Consumption
Source : Company, Smithers Apex, PwC Analys Shinhan Sekuritas Indonesia,
Estimation
77.00%
12.90%
8.60% 1.50%
Polyester Nylon Arcylic Others
Polyester Contributed 77% of the Total Apparel
Material
Source : www.fibre2fashion.com, Shinhan Sekuritas Indonesia,
1
32
Growing Markets with Opportunities from Domestic Demand and Global Condition (Cont’d)
In 2018, China has announced the policy to ban
import of 32 types of waste and scrap material
including waste PET bottle and also PET bottle flakes.
The regulation in China is expected to drive Re-PSF
price higher and offered an opportunity for exports.
In the global PSF market, China production is the
largest with a proportion of 59% of the total global
production. However, China’s Re-PSF industry is
highly dependent on imports as the country imports
about half of its raw material needs. It is expected
that the supply of Re-PSF in the global market to
decreased due to China’s waste plastics import
regulations. The shortage of supply that arise along
with China declining production volume, expected to
boost the price of Re-PSF.
As a result of this import ban, Inocycle has now
succeeded in expanding the scope of its exports.
Some countries that have been reached by Inocycle in
distributing their products are United States of
America, Germany and Italy and going forward
Inocycle expect that there will be many other
countries that can become Inocycle permanent
customers.
In addition, in 2018 the price of imported PET bottles
from Australia also decreased so this situation has
benefited Inocycle.
1
China Re-PET Import in 2016 - 2017
0
50
100
150
200
250
300
Jan Feb Mar Apr May Jun Jul Aug Sep Okt Nov Des
2016 2017
China Re-PET Import Origins
0 50 100 150 200 250 300 350
Others
South Korea
German
Phillipines
Mexico
Vietnam
Thailand
US
Indonesia
Japan
Hongkong
The Largest Hollow Conjugated Re-PSF Producer in Indonesia
33
With an annual production capacity of 33,600 Tons, Inocycle is the largest Hollow Conjugated Re-PSF Producer in Indonesia.
Inocycle has market dominance in the domestic market for Hollow
Conjugated Re-PSF, with an approx market share of more than 40%.
We expect the market share and dominance to expand when
Inocycle completes Re-PSF facility expansion.
The demand for Re-PSF in the future is expected to continue to
increase along with the increase in vehicle production which is
expected to continue to increase, infrastructure development that
will continue to run and increase in population which will have an
impact on increasing demand for clothing. If this happens, Inocycle
is a company in Indonesia that has the greatest potential to absorb
all of the increase in demand with its production capacity and its
ability to handle large scale production.
CompanyProduction Capacity
Annual (Tons)Re-PSF Type Main Sales Channel Quality Level
Inocycle 33,600 HC Domestic-Export Medium - High
PT HI 24,000 HC Export Medium
PT LJF 18,000 HC Domestic Medium – Low
PT HF 18,000 Solid Export Low
PT TF 12,000 Solid Domestic Medium – High
PT GF 10,800 Solid Domestic Low
PT HDT 6,000 Solid Domestic Medium – Low
Other 3 - 4 small companies 15,000 Solid Domestic Low
Total 133,800
15,520 16,249 17,013 17,812 18,650 19,526 20,444 21,405 22,411 23,464
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Global Polyester Staple Fiber (PSF) Consumption Forecast
(in Kilotons)
Source : Company, Shinhan Sekuritas Indonesia
CAGR : 4.7%
2
Source : Company
34
Inocycle is utilising the Hilon Indonesia’s domestic sales
network to distribute its Re-PSF, hence the stable sales
growth is achieved. Additionally, any b-grade
products/fibers are consumed appropriately by Hilon
Indonesia to maximise Inocycle’s production efficiency.
As the core of Indonesia's Hilon Group, Inocycle will
continue to get full support from Hilon Indonesia, both in
the form of quality control, development of new product,
marketing support and raw material support so that in the
future Inocycle will continue to grow to be the best.
Inocycle is part of the Indonesian Hilon Group which has more than 40 years of experience in the
Re-PSF processing industry, with its main product being Non Woven. Hilon Indonesia is a brand that
is well known and has reliable quality.
Hilon Indonesia has factories spread across several locations, including Jakarta, Bandung, Surabaya,
Semarang, Palembang, Medan, Denpasar and Makassar. Hilon also has extensive marketing
branches, namely Klaten, Padang, Aceh, Lombok, Banjarmasin, Balikpapan and Manado.
50% Market ShareApproximately
Of Indonesian Non Woven & PSF Market
Full Support from Parent Company3
45.54%
20.83%
Hilon Group Structure
36
Hilon Group Network
37
Inocycle and Hilon Group have abundant knowhow and experience in product production, so that stable and efficient quality maintenance
and production activities are possible and meet customer satisfaction.
Robust Relationship with Key Customers4
More than 20 years of relationship
38
Inocycle is the largest producer of Hollow Conjugated Re-PSF in Indonesia, with two other competitors who have smaller capacity and quality under
Inocycle. The lack of Re-PSF producers in Indonesia is caused by several things.
Efforts to obtain a significant amount of PET bottles can be a
challenge, especially for new players who do not have the connections
to large suppliers. The government also has strict policies in terms of
importing PET bottles from abroad. Inocycle itself is one of several
companies that are permitted to import PET bottles. One of the
requirements of the Government to obtain import permits is to have
adequate technology and infrastructure, which requires considerable
costs.
Building marketing networks from scratch will be difficult, time-consuming and
costly, hence not all companies will be able to survive with these conditions.
Inocycle also has several experts who have experiences at Samsung,
Hyosung and Kolon, bringing valuable business ideas as well as
advanced tecnology knowledge to the Company. Having industry
experts like them will be a challenge.
High Barriers to Entry
Inocycle is the only company in Indonesia that is certified to the Global Recycled
Standard (GRS) in Recycled PET bottles. To obtain this certification, a company
will need to implement ISO 9001, ISO 14000 and OHSAS 18000.
5
DISCLAIMER
The information contained in this presentation material has been taken from sources which we deem reliable. However, none of PT
Inocycle Technology Group Tbk and/or its affiliated companies and/or their respective employees makes any representation or
warranty (express or implied) or accepts any responsibility or liability as to, or in relation to, the accuracy or completeness of the
information and opinions contained in this report or as to any information contained in this report or any other such information or
opinions remaining unchanged after the issue thereof.
We expressly disclaim any responsibility or liability (express or implied) of PT Inocycle Technology Group Tbk, its affiliated
companies and their respective employees whatsoever and howsoever arising (including, without limitation for any claims,
proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a
results of acting in reliance upon the whole or any part of the contents of this presentation material and neither PT Inocycle
Technology Group Tbk, its affiliated companies or their respective employees accepts liability for any errors, omissions or
misstatements, negligent or otherwise, in the presentation material and any liability in respect of the report or any inaccuracy
therein or omission there from which might otherwise arise is hereby expresses disclaimed.
The information contained in this presentation material is not be taken as any recommendation made by PT Inocycle Technology
Group Tbk or any other person to enter into any agreement with regard to any investment mentioned in this document. This
presentation material is prepared for general circulation. It does not have regards to the specific person who may receive this
presentation material. In considering any investments you should make your own independent assessment and seek your own
professional financial and legal advice.
2
40
Corporate Secretary
PT Inocycle Technology Group Tbk
[email protected] ; [email protected]
i
Investor Relations
PT Inocycle Technology Group Tbk
www.inocycle.com
