PT Chandra Asri Pacific Tbk : Earnings Updates - 9M 2025 Transcript

Sarah Soraya

Good afternoon, everyone, and welcome to Chandra Asri Group's Nine-Month 2025 Earnings Call. My

name is Sarah Soraya from the Investor Relations team, and I'll be your host for today's session.

To begin, please note that during this call, the Company may provide Forward-looking Statements which encompass projections of our future results, business operations, and strategies. These statements are grounded in our current expectations and may involve inherent risks and uncertainties that could significantly differ from actual events or descriptions outlined in these forward-looking statements.

Let me briefly outline today's agenda and introduce our speakers.

I am delighted to introduce Pak Andre Khor, Company's Group Chief Financial Officer and Director, along with Ibu Alexandra Sukanegara and Pak Philippe Pangestu from the Investor Relations team.

For today's agenda, we will begin with an overview of Chandra Asri Group's business updates, followed by the key achievements for the first nine months of 2025. We will then share our next steps as we continue shaping the future of Chandra Asri Group, before concluding today's session with a Q&A session.

On that note, I'd like to hand over to Pak Andre. The floor is yours.

Andre Khor

Thank you, Sarah. Now, let me walk you through the latest Chandra Asri Group's business portfolio. We have continued to further expand and strengthen our businesses.

First, is Energy. In addition to our Bukom Refinery, and Condensate Splitter Unit, totalling 300,000 barrels of crude per day processing capacity - now being rejuvenated and expected to resume commercial operations in 2026 - recently, we have added a third sub-pillar by announcing the signing of a Sale and Purchase Agreement, to acquire all of ExxonMobil's Esso-branded retail stations in Singapore - targeted for completion by end-2025, subject to regulatory approval.

From the refinery to the roadside, we power progress. Our energy platform is built for reliability, efficiency, and growth - fuelling not just vehicles, but the heartbeat of communities and industries we serve. This is how we connect opportunity with impact, driving sustainable growth across the region.

Our Second Pillar is Chemicals. Totalling 10 million tons of chemical products per annum, our downstream chemicals portfolio includes our upcoming Chlor-Alkali and Ethylene Dichloride complex that is on track to come on stream in 2027.

And thirdly, Infrastructure. We are growing more robust with the extended synergy between the infrastructure assets in Indonesia and Singapore. Power fuels progress and connection; ports open gateways to trade and opportunity; logistics move what matters most; and water sustains every community. Behind all our investments in infrastructure is a shared purpose - to keep life flowing, economies thriving, and people connected to the essentials that move the world forward.

Let's walk through our key achievements for the nine months of 2025.

First, we delivered strong financial results - achieving a net profit of USD 1.7 billion and maintaining solid liquidity of USD 3.7 billion, which drove the interim dividend declaration of USD 20 million, and the successful securing of USD 1 billion in financing.

As part of our Energy Pillar, Chandra Asri Group has entered into a Sale and Purchase Agreement with ExxonMobil to acquire close to 60 Esso-branded retail fuel sites, including almost half freehold in Singapore - marking a significant step in our strategic expansion into the downstream segment of the energy value chain.

We have made strong progress on our latest chemicals initiative - the CA-EDC plant - which has now reached 33% construction completion. The project remains firmly on track, with plant start-up targeted for 2027, featuring 900 KTA capacity and creating 3,250 jobs. This marks an important milestone in the continued advancement of our Chemicals Pillar while advancing Indonesia's chemical self-sufficiency and down streaming agenda.

We are also actively expanding our infrastructure platform through strategic fleet growth, integrated logistics, and the development of renewable energy projects across Indonesia. Notably, we have signed a USD 125 million agreement for the rejuvenation of a Single Buoy Mooring and partnered with Sembcorp to develop a 16 MWp solar power project in Singapore.

In parallel, Chandra Asri Group continues to advance its sustainability agenda. We are investing in next-generation sustainable fuel technologies, and are nurturing future talent through engineering bursaries to universities. These initiatives deepen the Group's sustainability and community impact across the region.

Deep diving into the first highlight: our Financial Performance for the first nine months of 2025.

We delivered an exponential revenue growth, with total revenue increasing from USD 1.2 billion in 9M2024 to USD 5.1 billion in 9M2025, representing a 314% year-on-year increase. This growth was driven by strong contributions from Aster acquisition completed in April 2025.

In terms of profitability, we saw a transformative turnaround. Net profit after tax surged, enabling us to announce an interim dividend of USD 20 million, reflecting our strong earnings momentum and commitment to shareholder returns.

This performance underscores the strength of our integrated platform and the successful execution of our strategic initiatives.

Turning to our balance sheet performance for the first nine months of 2025, we have seen a substantial strengthening across all key financial indicators compared to FY2024.

• Total Assets increased by 94%, reflecting the impact of our strategic investments and asset growth.

• Shareholders' Equity grew by 69%, driven by strong profitability and discipline capital allocation, reinforcing our capital base and long-term resilience.

Most notably, our Liquidity Pool increased by 76%, providing us with a robust financial buffer. This enhanced liquidity not only supports our ongoing operations and growth initiatives but also equips us to better navigate the inherent cyclicality and market volatility of the petrochemical sectors. It ensures that we remain agile and resilient, even amid market uncertainties.

These results underscore the Group's financial health and reaffirm our commitment to building long-term value for all stakeholders.

Within the financial achievement of the Group, Aster-our majority-owned subsidiary-successfully completed a USD 1 billion Sustainability-linked Loan. This was a landmark transaction, reflecting strong demand and oversubscription from leading global banks across Asia, the Middle East, and Europe.

The facility was underwritten by DBS and OCBC, as part of a consortium of 11 international banks. This underscores strong market confidence in Chandra Asri Group's credit quality, strategic direction, and sustainability focus.

Proceeds from this financing will be used to support asset rejuvenation projects on Pulau Bukom and Jurong Island. These projects are critical to strengthening our operational resilience and ensuring longterm sustainable growth for the Chandra Asri Group.

This transaction not only boosts our financial strength but also accelerates our journey toward becoming a more sustainable and future-ready organisation.

Now, I'll hand it over to Philippe to walk us through the key milestones of our latest acquisition.

Philippe Pangestu

Thank you, Pak Andre, for your insightful overview of Chandra Asri Group's strong financial performance over the first 9 months of 2025. Now, let me shift gears a bit. I have some exciting news for you on a recent acquisition of ours. We are delighted to announce that on October 2025, Chandra Asi Group has officially entered into a Sale and Purchase Agreement with ExxonMobil to acquire all its Esso-branded fuel retail sites across Singapore. This acquisition really marks a significant milestone as we expand into the downstream retail segment of the energy value chain. Through it, we will inherit a trusted consumer brand with a strong nationwide presence built over decades. The Esso retail network provides Chandra Asri Group with a solid platform to broaden our regional footprint and diversify our energy portfolio beyond our existing refining segment. We really see this as a big step for us towards our vision of becoming Southeast Asia's leading energy, chemicals and infrastructure solutions company.

As Singapore's number one fuel retailer, Esso is truly a landmark asset. Let me highlight some key figures for you just to gain some perspective of its scale and strength. Currently, Esso is the market leader in multiple ways. We are number one by sites, with 32% of all retail fuel sites in Singapore, being Esso retail fuel sites. That's around 60 retail sites, including almost half of them being freehold land.

We are also number one by fuel volumes, with around, 33% of all fuel volume sold by retail stations in Singapore, coming from Esso retail stations. That equates to around more than 2.4 million barrels of fuel sold every year through Esso retail sites. Finally, most importantly, today the network serves over 350,000 loyalty members who have all placed their trust in the Esso brand. We deeply value that loyalty, and as to under Chandra Asri Group, we are committed to upholding the same standards of excellence and customer experience that have become the bedrock of Esso's success over the years. Beyond fuel retailing, Esso also offers a strong non-fuel proposition. We do this through partnerships with leading convenience store brands, as well as car wash facilities, delivery lockers, ATMs, and loyalty programs that enhance customer experience while driving recurring revenue. These ancillary business lines present attractive avenues for further growth and development under the Chandra Asri Group going forward. Looking ahead, we also see opportunities to equip selected sites with EV charging infrastructure. This would position the network to support Singapore's low carbon mobility transition, and it will also help us tap into the growing EV ecosystem.

Now that we know more about the asset, let's look at the strategic rationale behind this acquisition. Particularly in the context of the broader Chandra Asri Group. Firstly, the main reason for this acquisition is to enable Chandra Asri Group to enter the downstream retail segment by leveraging Aster's establish expertise and operational capabilities. Over time, we see clear potential for integration within our broader energy ecosystem. This includes alignment with our refinery network. Most importantly, Esso retail sites also provide a steady cash flow that complements the more cyclical nature of Chandra Asri Group's refining and chemical businesses. This will ensure stronger earnings resilience, for the Group as a whole. In addition to this, we are also acquiring a strong brand with proven market leadership. As previously mentioned, Esso's network commands ~33% market share in both volume and retail sites in Singapore.

Furthermore, this is underpinned by a strong customer base of over 350,000 loyalty members. Another point is that we want to highlight is the fact that this acquisition positions Chandra Asri Group for future inorganic growth. It allows us to further explore opportunities in the region for expansion and downstream integration across the Group. Finally, this asset also comes with a portfolio of close to 60 retail sites, almost half of which being freehold land. In today's Singapore real estate market, we all know that such holdings are exceptionally rare. This presents a unique opportunity for future development and value creation for the Chandra Asri Group.

So, building on that, the Exxon retail network will also play a significant role in strengthening Chandra Asri Group's presence across Singapore and Indonesia. We see this acquisition as not only a significant step forward for Chandra Asri Group, but also as for Indonesia as a whole. It signals Indonesia's growing corporate strength and highlights our ability as a country to expand confidently into international markets such as Singapore. Beyond market presence, this platform also fosters knowledge sharing. We will be able to draw on Esso's operation on digital retail experience to build stronger downstream capabilities in Indonesia. Finally, this asset will also be able to generate sustainable foreign income that will repatriate directly into Indonesia's balance of payments. This stands as another example of Chandra Asri Group's contribution to the national value creation and regional growth. With that, I'll hand it over to Alexa, who will share some updates on the development of Chandra Asri Group, CA-EDC project in Indonesia.

Alexandra Sukanegara

Thanks Philippe, for the overview of the Esso acquisition. Moving on, our next highlight is on the Chlor Alkali and Ethylene Dichloride (CA-EDC) project in Cilegon, which continues to advance, with 33% of construction now complete.

This project is key part of Chandra Asri Group's integrated chemical portfolio, designed to strengthen domestic manufacturing supply chains and reduce import dependence. Once it's operational, the facility will create over 3,200 new jobs and will generate around IDR 10 trillion in economic impact, driven by import reduction and export growth. This will not only strengthen national down streaming, but also provide essential raw materials for various domestic industries, ranging from water treatment, soap and detergent production, alumina refining, to nickel processing, ultimately positioning Indonesia more strongly in the global market.

The complex includes a 400 KTA Caustic Soda Plant, fully dedicated to domestic markets such as alumina, nickel refining, and water treatment; and a 500 KTA EDC Plant, fully export-oriented, supplying feedstock for the VCM-PVC chain - supporting downstream industries like construction and packaging.

This project not only enhances national supply security but also contributes to Indonesia's long-term industrial competitiveness.

Moving to our Infrastructure Pillar - our infrastructure-arm, PT Chandra Daya Investasi Tbk or CDI continues to build strong momentum beyond the IPO, with growth driven by project delivery and portfolio expansion.

Firstly, CDI is constructing two new 9,000 Deadweight Tonnage vessels in Japan which will be used by CDI to expand logistics capacity and strength the connectivity in the region.

Secondly, 20 new trucks have been added to the land logistics fleet, enhancing cargo handling efficiency and service reliability across Indonesia.

Thirdly, CDI increased its shareholding in maritime subsidiaries CSI and MIM to 99.99% ownership, through a transaction valued at IDR 2.7 trillion - further strengthening operational control and integration.

And lastly, through KCE, CDI continues to drive the energy transition with the installation of 4.7 MWp of solar capacity in Cilegon, increasing the Group's total solar capacity to 11 MWp and reducing carbon emissions by nearly 10,000 tons per year, equivalent to over 469,000 trees.

In parallel, we continue investing to strengthen the reliability and sustainability of our infrastructure

assets.

We signed a USD 125 million contract with Allseas and DOF to rejuvenate the Single Buoy Mooring and subsea pipeline system in Bukom - a critical logistics asset for crude transfer to Aster's refinery. This upgrade will improve both efficiency and operational resilience.

Additionally, we also partnered with Sembcorp Solar Singapore to develop a 16 MWp solar project across Bukom and Jurong Island by end of 2026, supporting our decarbonisation goals and reducing energy intensity across our industrial sites.

Finally, on sustainability - we continue to make progress across multiple fronts.

Aster signed an MoU with Aether Fuels, backed by Xora, to advance next-generation sustainable fuel technologies, reinforcing our commitment to innovation and low-carbon solutions. Once proven and advanced into the implementable state, this green technology will be implemented across Southeast Asia region, especially Indonesia.

Chandra Asri Group also achieved the top ranking at the 2025 Green Industry Awards, with a 14.2% reduction in carbon intensity since 2018, underscoring our commitment to decarbonisation and sustainable growth.

We launched an SGD 1.5 million bursary program to support engineering students across three universities, strengthening our role in talent development and sustainability education. By investing in young talents, especially engineering students, Chandra Asri Group invests the future Southeast Asia talented leaders, including Indonesia.

While in Indonesia, we also continue our environmental initiatives - we will be planting over 500 mangrove trees in Banten as part of our 'One Kilometer, One Mangrove' program at the Jakarta Running Festival 2025.

These milestones reflect our consistent focus on sustainability, innovation, and regional integration as core drivers of long-term value creation for the Group.

With that, this concludes the updates from my side.

I will now hand it over to Pak Andre to conclude our earnings call for nine months of 2025 and share some key next steps focuses of Chandra Asri Group.

Andre Khor

Thank you, Alexa. As we look ahead, we remain focused on disciplined execution and value creation across all pillars of the Group.

First, we will complete the Esso acquisition in Singapore smoothly ,which will expand our regional energy footprint and strengthen integration within our portfolio.

Second, the CA-EDC project remains on track for start-up in early 2027, marking a major USD 1 billion

milestone in Indonesia's chemical integration journey.

Third, we will continue to advance our infrastructure agenda - expanding logistics capacity, adding renewables, and strengthening reliability across our assets.

We will also continue to drive decarbonisation and community initiatives, reinforcing our leadership in sustainability.

And finally, we will pursue strategic partnerships and value-accretive investments to drive regional growth, competitiveness, and long-term shareholder value.

To conclude, thank you very much for joining today's Earnings Call. We are grateful for your confidence as we continue to build a stronger, more integrated, and more sustainable Southeast Asia's leading energy, chemicals, and infrastructure solutions company.

With that, I will now hand the floor over for the Q&A session.