Ver.

02 May 1, 2011

Project Mystic
Discussion Material

Jakarta 2010

This document is confidential and is intended solely for the use and
information of the party to whom it is addressed.
Project Mystic Executive Summary
Transaction Snapshot Company Overview
j Name
Project : Project
j Mystic
y  DCP is an integrated
g steel manufacture and EPC group
g p
Company name : PT Dutacipta Pakarperkasa established in 1982 with businesses in steel
construction, galvanizing, tower fabricator and tower
Country : Indonesia
leasing provider. The galvanizing business started in
Industry : Steel fabricator, Infrastructure, 2001 which overall marked 26 years of solid
Construction, Engineering experience and track records in steel industry.
industry Based in
Business Group : Bukitjaya Abadi, Dutacipta Surabaya, DCP Group is now grab market share in
Konsultama tower business and infrastructure all over Indonesia
Book Value : Rp 700 bn  Its tower fabricator which producing 5,000 T steel per
IPO target
g Rp
p 500 bn yyear is currentlyy the market leader for East Indonesia
Market with 11 Lines of production
Situation Update Investment Opportunity
 DCP and its group is a 100% family controlled  DCP expanding its business in 2008 to produce Angle
company and JE Sendajaja (JES) is the lead person of Steel and Round Bar Rolling Mill (ASRM) to secure its
the business. JES realised that DCP would not be able raw material as well as go to downstream industry.
to grow internally and need the help of financial  The expansion was cancelled due to global economic
partner to expand the business and catch up the crisis that hit the industry, and the plan was
industry momentum as well as to reach his big vision postponed.
p p However,, DCP put
p 10% down p payment
y for
in integrated steel industry the machine worth USD 500,000 to the Chinese
 A piece of land as big as 6 ha had already been manufacturer
acquired for the ASRM project. Chinese machine  There is opportunity to be financing partner of DC as a
factory pushed DCP to pay the machine in full. group and developing the business to upstream
 DCP iis lack
l k off iinternall fi
financing
i d due to tight
i h cashflow
hfl products
d suchh as ASRM, H Beam, steell bbillet,
ll etc.
and difficulties to get capex financing from the bank  The entry strategy is from the ASRM expansion
and other traditional financing institution project .
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Project Mystic Company Overview
Key Personnel ‐ Company Vision EPC Company
JE Sendjaja Founder  Bukit Jaya
y Abadi is the first company
p y and the
Hans William Sendjaja President Commisioner beginning of the DCP Group established by JES in
Sisca Damayanti President Director 1982.
Agustines Iman Himawan Director
 The company starts with small construction and
Martinus H Koentjoro Deputy Director
Purwanto g
Finance Manager engineering company building many kinds of
structure such
h as housing,
h i warehouse
h andd then
h
Vision expand the business into tower fabricator
To become one of Indonesia’s prides through a strong global  The EPC company remains the sales generator and
presence in its core business fields provide some order in the fabrication facilities

Engineering Company Fabricator

 Dutacipta Konsutama is the brain of the steel group  DCP is the crown jewel of the business which asset
that
h provides
id technology,
h l kknowledge
l d and d efficient
ffi i exceedd Rp
R 500b
500bn and d growing
i rapidly
idl to be
b the
h
working process for the fabricator biggest tower producers in Indonesia and counted as
 DCK employs more than 60 high qualified engineers top 10 fabricator in the industry.
that capable using latest engineering design software.  The company has long outstanding track record
 DCK supportst DCP in
i maximising
i i i their
th i production
d ti as producing steel structure for major national and
well as BJA to create engineering design multinational companies in Indonesia
 In 2007, JES resigned as the president director and
hand over the business to his two children that focus
in DCP.

2
Project Mystic Fast Development of DCP – 2004

3
Project Mystic Fast Development of DCP – 2006

4
Project Mystic Fast Development of DCP – 2008

In 2009 all area is built and fully used

5
Project Mystic International Certifications

ƒ QHSE System : ISO 9001 : 2000

OHSAS 18001 : 2007
ISO 14001 : 2004

Quality Management System Health & Safety Standard Environmental Standard

ISO 9001:2000
9001 2000 OHSAS 18001:2007
18001 2007 ISO 14001:2004
14001 2004

6
Project Mystic Tower Production Output

A. Tower Production Output In Tonnage

Weight (Tons)

30,000.00
25,885.20

25,000.00
19070
20,000.00
,

15,000.00
8,815.50
10,000.00
4,754.33
5,000.00 1,680.00

0.00
2004 2005 2006 2007 2008
Year

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Project Mystic Heavy Steel Structure Output

4500

4000

3500

3000

2500

2000

1500

1000

500

0 Capacity
Nov'09 Des '09 Jan '10 Feb '10 Mar '10 Apr '10 Load

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Project Mystic DCP Organisation and Operation
DCP Production Structure Operation System
 Online ORACLE system
Integrated from finance, distribution, manufacturing and project.
 Online Barcode system
To trace and control work in process product until finished on the
right place, right time, right quantity and right quality.
LSRTU Supporting HSRTU

telco tower, Span bridge,

transmission tower
and gantry, sub‐
Engineering bridge,
station, broadcast powerplant
tower, radio tower structure,
f
from, industrial
d l airport, high rise
conveyor, wind Q&A
energy tower
building

Engineering Competencies Barcode System

 DCP has up to sixty professionals with a wide range of
Check and
engineering disciplines to assure product and customer service, Machine Put Barcode
scan by
Check and
experienced in many project field Process Label scan by QC
Production

 The company utilise industry‐accepted software package

program such as: Check
Ch k and
d
Material
Check
Ch k and
d
Galvanizing send to
• Tekla Structure for modeling and steel detailing, scan by Galv
Galvanize
scan by WIP
• Staad Pro and SAP 2000 for steel structure analysis,
• FastCAM for nesting.
Check &
Check Setting FGI
scan by
andd scan Packing Storage
QC
by Setting

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Project Mystic Product Application – Light Steel Structure

Aesthetic tower

10
Project Mystic Product Application – Light Steel Structure

Transmission and Telecommunication Tower

11
Project Mystic Product Application – Light Steel Structure

• Conveyors

Conveyor
y Trestle

Conveyor Gantry 41 M

Transfer Tower

12
Project Mystic Product Application – Heavy Steel Structure

• Bridges

Long Span Bridge 100 ‐ 500 m

13
Project Mystic Product Application – Heavy Steel Structure

• Bridges

Bridge, A‐40 Bridge, A‐50

Bridge, A‐45 Bridge, A‐60

14
Project Mystic Product Application – Heavy Steel Structure

• Power Plant

Central Control Room Main Frame

15
Project Mystic Product Application – Heavy Steel Structure

• Tanks

16
Project Mystic Product Development – Floating Knock Down Jetty

Knockdown Jetty and

wave attenuator. This
kind of product is
suitable to be
implemented in
I d
Indonesia
i as a
archipelago country.

17
Project Mystic Product Development – Floating Marina

Perspective view of
floating structure for
marina

Knockdown
oc do syste
system for
o
floating structure

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Project Mystic Product Development – Gelagar®

• Objective:
– To satisfy
f wide
d range off structurall and
d aesthetic
h design
d requirement
– To fulfill an almost unlimited range building configuration
• Benefit:
– Tapered build up primary structure (column & rafter) could reduce up
to 25% weight of the main rigid frame
– Structure
S ffoundation
d i requirements
i are ffewer and
d lilighter
h

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Project Mystic Product Development – Gelagar ®

• Product
P d S d d Building:
Standard B ildi
– Single Span Gelagar ®
– Multi Span Gelagar ®
– Low Rise Building Gelagar ®
• Product Non Standard Building:
– Vehicle Parking Gelagar ®
– Fuel Service Gelagar ®
– Storage Gelagar ®
– Aircraft Hangar Gelagar ®
• Product Flooring:
g
– Mezzanines Gelagar ®
– Walkway Gelagar ®

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Project Mystic Working Condition at DCP

Installing New Machines Welding

Area to Produce Telco Tower Worker on Punching Machine

21
Project Mystic Raw Material ‐ Cutting

Raw Material Angle Steel Raw Material Angle Steel

Raw Material Angle Steel Drawing and Cutting

22
Project Mystic Machines – CNC Angle Line

23
Project Mystic Machines – CNC Plate Working

24
Project Mystic Machines – CNC Plate Working

25
Project Mystic Production Process

Punching Angle Steel Punching Hole

Drawing CNC Interface

26
Project Mystic Products

Bended H‐Beam for Kuala Namu Airport Steel Construction for Bridge

Steel Construction for Bridge Steel to Draw and Punch

27
Project Mystic Galvanizing

Galvanizing Pond Cleaning Machine

Product to be Galvanized Galvanize Products

28
Project Mystic Galvanizing

Acid Pickling, Rinsing & Fluxing Area Zinc Bath Furnace, Size W. 1500 x L. 7500 x D. 2200 mm

Acid Filtering & Recycling Area

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Project Mystic Loading Process

30
Project Mystic Miscellaneous

Tower in Assembly (Trial) Bending Machine (Turkey)

Double Crane for loading/unloading Site Picture

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Project Mystic Angle Steel and Round Bar Rolling Mill
Project Snapshot Product and Production Capacity
 90% of raw material from transmission and telco Product Name Specification Capacity
tower is angle steel. The raw angle steel would later Angle Steel L 40 100,000 T/Year or 18 T/Hour
L 50 100,000 T/Year or 18 T/Hour
be processed in drawing, cutting and punching to
L 60 100,000 T/Year or 26 T/Hour
create the tower. L 70 100,000 T/Year or 26 T/Hour
 Until now many of the raw material is still imported L 80 100,000 T/Year or 26 T/Hour
Round Bar Mill Ø 16mm 100,000 T/Year or 18 T/Hour
f
from China
Chi and d nott many local
l l producers
d produce
d Ø 19mm 100,000 T/Year or 18 T/Hour
angle steel (Krakatau Steel and Pulogadung Steel Ø 22mm 100,000 T/Year or 18 T/Hour
produced are the local producers) Ø 25mm 100,000 T/Year or 26 T/Hour
Ø 28mm 100,000 T/Year or 26 T/Hour
 The angle steel price is somewhat fluctuates that Ø 32mm 100,000 T/Year or 26 T/Hour
affects many steel construction producers, and this is
create opportunity for DCP to secure their supply or
raw material
Development Schedule Factory Layout
 Tooling and equipment  Size of factoryy buildingg is ((21+24)) x 200 meters.
Contract sign :T=0  Totally 3 building:
First delivery : 6 months
Last delivery : 8 months
‐ 2 building for production.
Installation : 9 months ‐ 1 building for storage.
Trial production : 3 months after installation  Open storage: 2 line for 24 x 200 meters
meters.
Commercial production : 4 months after installation
 Layout drawing (arm layout)
 Construction
Site Acquisition :T=0
Cut and fill : 1 months
Main building construction : 4 months
Side building construction : 2 months
Totally ready to use : 6 months

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Project Mystic Factory Layout

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Project Mystic Location of New ASRM Plant
Location Location and Its Surrounding

Location of the proposed manufacture plant is at Jl. Wringinanom

Km. 37, Desa Kedunganyar , Kecamatan Wringinanom, Kabupaten
Gresik. The location is 2 Km west of DCP current location

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Project Mystic The Future Development Site (ASRM plant)

Entrance to the Site ASRM Area

Bridge to the Next Site (right side) ASRM Area

35
Project Mystic The Future Development Site (ASRM plant)

Further Development Up To 20 Ha ASRM Area

ASRM Area ASRM Area

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Project Mystic Production Process

a) Billet preparation for QC checking and cutting

b) Pushing billet to heat furnace and heat it at 1,150°C – 1,200°C
c) Using roller conveyer, heated billet is place in the ø520 rough rolling mill and roll it for 5 – 7 times
d) The next process is through ø460 mild rolling mill (vertical roller)
e)) Form verticall roller,
ll heated
h d billet
b ll is process into ø420 tandem d rolling
ll millll and
d rollll it for
f 7 times
f) In total, there are 14 times rolling process before billet is ready as finished product
g) The last rolling process needs 850°C ‐ 950°C temperature with speed about 5.5m/second
h) Using roller conveyor, the finished product is processed in cooling bed and cut in particular measurement
i) The finished product would later go through straighten process and QC department will inspect, measured,
packed and placed in the warehouse

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Project Mystic Productions

Steel Billet Conveyor to Furnace

Billet Is Rolled Into Furnace Outside Look of Furnace

38
Project Mystic Productions

Rolling Process Rolling Process

Cooling Bed Finished Goods

39
Project Mystic Thought Process of the Transactions
DCP and IPO Plan Story Line
 The founder currentlyy realised that the company
p y Sh tTTerm
Short M di Term
Medium T L TTerm
Long
could not grow organically due to lack of internal
finance. JES also acknowledge the important of
Infrastructure
financial partner to realised his dream of efficient‐ Engineering
Concession
integrated steel manufacturer
 IPO is one of the capital raising options the company Product Medium Scale Large Scale Overseas
DCP
considers at the moment. Expansion Fabricator Fabricator EPC Projects
 The proceeding of the fund is to lower the debt and
interest cost, invest in stronger EPC team and moving BJA Upstream
Construction
to upstream market of the industry to control the Products

supply chain as well as increasing margin DCK

Business Strategy Analysis

 Development of DCP should rely in two main
objectives, (1) moving the business to upstream
products and (2) creating sales arms that will keep the
fabricator and upstream business running.
 Sales arms are the EPC business and its contracts
(building airport, port, etc), infrastructure concession
(bridges, toll road, other public facilities), and
overseas EPC projects.
 In the future main business of DCP would be large
scale fabricator as well as producing raw material for
steel construction
 DCP has a strong and professional management team.
Even though family influence remains strong, the
incoming of young professionals in technical and
business development has help to shape the company
current strong performance.
performance
 With stronger EPC team, the company would be able
to secure its fabrication capacity. Through upstream
investment such as ASRM and H‐beam facility, the
company
p y would be able to increase its margin
g as well
as control the process from downstream to upstream.
 The upstream business risk is lower due to internal
consumption of the product to own group.
40
Project Mystic Financial Highlight

De sc r i p t i o n PT. DCP - 2010 PT. BJA - 2010

Current Asset
Cash and Bank 7,564,837,180 1.40% 7,146,001,027 2.95%
Account Receivable 168,924,312,672 31.22% 50,221,029,791 20.75%
Inventory 136,298,345,785 25.19% 123,355,416,034 50.96%
Other Current Assets 85,332,087,145 15.77% 14,774,985,519 6.10%
Total Current Assets 398,119,582,782 73.59% 195,497,432,371 80.76%
Fixed Assets
Acquisitions Cost 167,554,076,406 30.97% 95,855,306,475 39.60%
Acc. Dep. (24,672,565,497) -4.56% (49,268,736,655) -20.35%
NET Fixed Assets 142,881,510,909 26.41% 46,586,569,820 19.24%
Total Assets 541,001,093,691 100.00% 242,084,002,191 100.00%
-
Current Liabilities
Account Payables 84,625,209,652 15.64% 195,751,336,239 80.86%
Bank Loan 309 986 092 224
309,986,092,224 57 30%
57.30% 12 068 426 746
12,068,426,746 4 99%
4.99%
Other Current Liabilities 70,445,598,688 13.02% 12,404,160,831 5.12%
Total Current Liabilities 465,056,900,564 85.96% 220,223,923,816 90.97%
Long Term Liabilities
Bank Loan 35,856,868,663 6.63% -
Total Long Term Liabilities 35,856,868,663 6.63% - 0.00%
Total Liabilities 500,913,769,227 92.59% 220,223,923,816 90.97%
Equity
Share 20,000,000,000 3.70% 649,992,500 0.27%
Revaluation FA 99,861,660 0.04%
Retained Earning 8,709,701,677 1.61% 17,252,382,515 7.13%
Current Year Earnings 11 377 622 787
11,377,622,787 2 10%
2.10% 3 857 841 700
3,857,841,700 1 59%
1.59%
Total Equity 40,087,324,464 7.41% 21,860,078,375 9.03%
Total Liabilities & Equity 541,001,093,691 100.00% 242,084,002,191 100.00%

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Project Mystic Financial Highlight

D e sc r i p t i o n PT DCP - 2010
PT. PT BJA - 2010
PT.

Net Revenue 325,027,123,724 100.00% 91,549,254,512 100.00%

Cost of Good Sold (254,452,750,663) -78.29% (68,364,813,402) -74.68%
Gross Profit 70,574,373,062 21.71% 23,184,441,110 25.32%
Opex (25,122,720,558) -7.73% (19,460,051,519) -21.26%
Operating Income 45,451,652,504 13.98% 3,724,389,591 4.07%
Other Income / (expenses) (34,074,029,717) -10.48% 133,452,110 0.15%
Net Profit before TAX 11,377,622,787 3.50% 3,857,841,700 4.21%

Ration ; PT. DCP - 2010 PT. BJA - 2010

Current Ratio 0.86 0.89
Total Debt Ratio 0.93 0.91
Debt/Equity Ratio 12 50
12.50 10 07
10.07

Gross Profit Margin 21.71% 25.32%

Operating Margin 13.98% 4.07%
Net Margin before Tax 3 50%
3.50% 4 21%
4.21%
EBITDA 18.02% 13.76%

Return on Assets Ratio 2.10% 1.59%

Return on Equity Ratio 28.38% 17.65%

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End of Document