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PT Avia Avian Tbk
   Investor Presentation
      Q3 2024 Results
Page 4
    Disclaimer
All investments are highly speculative in nature and involve substantial risk of loss. We encourage our investors to
invest very carefully. We also encourage investors to get personal advice from their professional investment advisor
and to make independent investigations before acting on the information that we publish. Much of our information is
derived directly from information published by companies or submitted to governmental agencies which we believe
are reliable but are without our independent verification. Therefore, we cannot assure you that the information is
accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take
in reliance on our statements or recommendations.
Past performance is not necessarily indicative of future results. All investments carry significant risk and all investment
decisions of an individual remain the specific responsibility of that individual. There is no guarantee that systems,
indicators, or signals will result in profits or that they will not result in a full loss or losses. All investors are advised to fully
understand all risks associated with any kind of investing they choose to do.
Various statements contained in this presentation, including those that express a belief, expectation, or intention, as
well as those that are not statements of historical fact, are forward-looking statements. These forward-looking
statements may include projections and estimates concerning the timing and success of strategies, plans, or
intentions. We have based these forward-looking statements on our current expectations and assumptions about
future events. These assumptions include, among others, our projections and expectations regarding market trends
litigation and our ability to create an opportunity with attractive current yields and upside. While we consider these
expectations and assumptions to be somewhat reasonable, they are inherently subject to significant business,
economic, competitive, regulatory, and other risks, contingencies, and uncertainties, most of which are difficult to
predict and many of which are beyond our control and could cause actual results to differ materially from any future
results, performance or achievements expressed or implied by these forward-looking statements. Investors should not
place undue reliance on these forward-looking statements. We undertake no obligation to update any forward-
looking statements to conform to actual results or changes in our expectations unless required by applicable law.



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    Avian Brands team




       Ruslan Tanoko       Robert Tanoko          Kurnia Hadi      Andreas Hadikrisno
       Vice President      Operations &         Finance Director    Head of Investor
          Director      Development Director                           Relations



       ruslan.tanoko       robert.tanoko          kurnia.hadi       investor.relations
     @avianbrands.com    @avianbrands.com      @avianbrands.com    @avianbrands.com




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    Avian Brands Q3 2024 snapshot


              SALES                               GROSS PROFIT                                       EBITDA          NET PROFIT
           IDR 1.8 T                                   IDR 776 B                                    IDR 427 B        IDR 352 B
            ( US$ 113 m )                                ( US$ 49 m )                                ( US$ 27 m )      ( US$ 22 m )
                                                            43.5%                                       24.0%             19.7%




        EMPLOYEES                                  DISTRIBUTION                                    COVERAGE         CUSTOMERS
                                                     CENTERS
                                                                                                   38 Provinces       57,000+
             8,000+                                          162                                     99 Cities      Retail outlets

Convenience translation from IDR based on the average USD/IDR exchange rate in Q3 2024 of 15,821




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    Q3 2024 financial performance highlights

          In IDR billion                     2024               2023             Change                 ▪ In Q3, consolidated sales were recorded at
       (except per share data)                                                                            IDR 1.8 trillion, marking a 7.8% increase
    Consolidated sales                       1,784              1,656                 7.8%                compared to the same period last year.
     Architectural solutions                 1,352              1,292                  4.7%             ▪ The inflationary pressures have softened.
                                                                                                          However, consumer spending remains
     Trading goods                              432                364               18.7%
                                                                                                          sluggish, reflecting continued challenges in
    Gross profit                                776                697               11.2%                the economic environment.
     Architectural solutions                    660                634                 4.1%             ▪ The slight decline in EBITDA and net profit
     Trading goods                              116                 63               82.3%                margins was attributable to the increase in the
                                                                                                          promotion and marketing activities in
    Gross margin                            43.5%              42.1%                  1.3%
                                                                                                          response to the more aggressive competition.
     Architectural solutions                48.8%              49.1%                  -0.3%
                                                                                                        ▪ Avian Brands is focused on executing its
     Trading goods                          26.7%              17.4%                   9.3%               sustainable growth strategies, aiming to grab
    EBITDA                                      427                410                4.2%                market share from other competitors amidst
                                                                                                          the tough market conditions.
    EBITDA margin                           24.0%              24.8%                 -0.8%
    Net profit                                  352                334                5.4%
    Net profit margin                       19.7%              20.2%                 -0.4%
    EPS                                       5.8(1)               5.4                8.0%
(1) Calculated based on the weighted average number of shares in Q3 2024 after taking into account the treasury shares




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    New products launched in Q3 2024
    Key product segments                                                                         Price range
                            Premium                     5                          4                      3                          2           1   Economic
                                Sunguard                 Supersilk  Supersilk
                                All-in-One   Sunguard   Semi Kilap Anti Noda Supersilk

          Wall
                                               No Drop         No Drop Beton No Drop         No Drop          No Drop
                                              Anti Panas        & Batu Alam Plus 3in1 No Drop Basic           Bitumen

     Waterproofing
                                                  Avian Lem           Avian Lem                    Avian Non-           Avian Non-
                                                 Epoxy Super         Epoxy Hemat                   Sag Super            Sag Hemat

          Glue
                                                            GML500           GM510       GM270    GM480       GM220        GM380         GM385

     Instant cement


▪ During Q3 2024, we launched a total of 4 products
     as indicated in blue labels.
▪ Our robust research, development, & innovation
     (RDI) capabilities empower us to continuously
     deliver best-in-class products, strengthening our
     leading position in the market.




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    Distribution center expansion

                                                                                             Distribution centers by
                                                                                             regions:(2)
                                                                                             Java: 69
                                                                                             ▪ Greater Jakarta: 12
                                                                                             ▪ West Java: 15
                                                                                             ▪ Central Java: 19
                                                                                             ▪ East Java: 23
                                                                                             Outer Java: 93
                                                                                             ▪ Sumatra: 35
                                                                                             ▪ Kalimantan: 19
                                                                                             ▪ Sulawesi: 20
                                                                                             ▪ Rest of Indonesia: 19
▪ Our strong logistical infrastructure enables us to make ~13,000 daily deliveries.          Total: 162
▪   We are able to achieve 92%(1) 1-day delivery service fulfilment.
▪ The company is committed to strengthening our delivery capability and optimizing the
  supply chain efficiency.
(1) For retail outlets located within a 50 km radius of a wholly-owned distribution center
(2) Excluding mini distribution centers



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    Consolidated business – sales & customers

     Q3 sales by value           9M sales by value            Q3 number of      9M number of
            (IDR billion)               (IDR billion)          customers         customers




                                                   5,405                       55,101   56,153
                       1,784      5,164
      1,656                                                  49,593   50,990




       23                   24     23                   24    23       24       23       24



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    Consolidated business – sales

                  9M 2024 sales by segments                                        9M sales by customers           9M sales by distribution
                                                                                                                          networks


      Trading goods
                                                                                                                      0.7%          0.6%
           21%
                                                                                      7.1%             7.9%           11.7%         10.1%




                                                                                     92.9%             92.1%          87.6%         89.3%




                                                                                      23                 24            23            24
                                             Architectural solutions(1)               Modern retail outlets              Others
                                                       79%                                                               Third-party DCs
                                                                                      Traditional retail outlets         Wholly-owned DCs
(1) For investors who require details on the sales breakdown by segments, please
contact our Head of Investor Relations



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 Consolidated business – gross profit

     Q3 gross profit               9M gross profit            ▪ In Q3, Avian Brands recorded a consolidated gross
            (IDR billion)                (IDR billion)          profit of IDR 776 billion, indicating an increase of
                                                                11.2% year-on-year. The gross margin for the quarter
                                                                was 43.5%.
            margin in %                 margin in %
                                                              ▪ For the nine months, consolidated gross profit
     42.1                   43.5   44.2            44.5
                                                                reached IDR 2.4 trillion, representing a 5.4% year-on-
                                                                year increase. During the same period, gross margin
                            776                     2,405       was registered at 44.5%.
                                   2,281
     697                                                      ▪ Raw material prices exhibited a relatively stable
                                                                trend in Q3. The company is actively monitoring
                                                                fluctuations in the USD/IDR exchange rate and the
                                                                upward trend in certain materials.




     23                     24      23                   24



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 Consolidated business – EBITDA & net profit

       Q3 EBITDA                     9M EBITDA                    Q3 net profit              9M net profit
            (IDR billion)                 (IDR billion)               (IDR billion)                 (IDR billion)



            margin in %                   margin in %                 margin in %                   margin in %
     24.8                   24.0   27.6                   26.5   20.2            19.7        22.1                   21.5


                                   1,425             1,430
     410                    427                                                       352   1,142              1,160
                                                                 334




     23                     24      23                    24     23                   24     23                     24



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 Architectural solutions – sales

      Q3 sales by value             9M sales by value           Q3 sales by volume(1)        9M sales by volume(1)
              (IDR billion)                (IDR billion)                 (metric ton)                 (metric ton)




                                     4,180            4,247                        42,552     119,918          124,409
       1,292               1,352                                  37,955




         23                    24     23                   24       23                  24       23                  24
(1) Excluding instant cement




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 Architectural solutions – customers

      Q3 number of              9M number of
       customers                 customers

     as % of total customers   as % of total customers
      91.3             91.5     91.1             91.7



                               50,191         51,496
     45,285         46,664




                                                         27th August 2024 - Avian Brands’ customer gathering, Bandung

      23               24       23              24



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 Trading goods – sales & customers

     Q3 sales by value            9M sales by value            Q3 number of              9M number of
            (IDR billion)                (IDR billion)          customers                 customers

                                                              as % of total customers   as % of total customers
                                                               75.7             76.8     82.9             83.6


                                                    1,158
                            432                                                         45,694         46,919
                                    984                                      39,145
       364                                                    37,566




       23                   24      23                   24    23              24        23              24



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 Gross profit by segments

                      Architectural solutions                                            Trading goods


     Q3 gross profit                   9M gross profit            Q3 gross profit                   9M gross profit
            (IDR billion)                    (IDR billion)              (IDR billion)                       (IDR billion)



            margin in %                     margin in %                margin in %                          margin in %
     49.1                   48.8       50.4            50.8       17.4            26.7               17.8                   21.3


                            660        2,106            2,158                                                               247
     634                                                                                116
                                                                                                     175
                                                                   63




     23                     24          23                   24   23                    24           23                     24



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 Well-managed cost structure

 Cost breakdown (as % of sales)
                                             2023      9M 24     ▪ Avian Brands maintained an
                                                                   aggressive approach in its
 G & A(1)                                       3.2%      3.4%
                                                                   marketing efforts. This led to an
 Sales and marketing(1)                        17.7%     18.1%     increase in the sales and
 COGS(1)                                       54.6%     55.5%     marketing expenses.

 Total                                        75.5%      77.1%
 COGS breakdown (as % of sales)
                                             2023      9M 24     ▪ Raw material prices remain
                                                                   relatively stable during the
 Raw material                                  27.8%     25.3%
                                                                   nine-month period.
 Direct labour                                  1.1%      1.1%   ▪ The company intensified its
 Factory overhead                               2.4%      2.7%     promotional activities amidst
                                                                   the growing competition,
 WIP and FG                                    15.8%     17.8%     contributing to an increase in
 Below-the-line (BTL) expenses                  7.6%      8.6%     BTL expenses.

 Total                                        54.6%      55.5%
(1) Includes depreciation and amortization




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 Robust cash-flow generation & AR management

  Trade working capital                              Capital expenditure                                    Free cash flow                               On-time collection
                (IDR billion)                                    (IDR billion)                                    (IDR billion)



            as % of total sales                              as % of total sales                              as % of total sales                         Inflation             Inflation
           30.1             30.2                            3.1               4.5                           16.7             16.1                         pressure              pressure


          2,112              2,173
                                                                                                                                                           90.2%                 90.1%
                                                                                 244                       1,171
           997               1,021                         216
                                                                                 67                                               870
           523                  513                         88
          1,243              1,286
                                                                                 177
                                                           128
          -651                -647


           23               9M 24                          23                9M 24                           23               9M 24                          23                 H1 24
     AR                     RM inventory                      Expansion capex
     FG inventory           AP                                Routine capex(1)
(1) The routine capex consists of upgrades to the manufacturing facilities and IT infrastructure, trucks and vehicles in the distribution centers, and tinting machines for retail outlets




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 Updates on the share buyback program

      Number of shares                 Value in Rupiah           ▪ Avian Brands launched a share buyback program in
                (million)                    (IDR billion)         December 2023.
                                                                 ▪ The maximum authorized number of shares for the
                                                                   buyback program is 1.4 billion shares with a budget
                                                                   limit of IDR 1 trillion.
                                                                 ▪ As of September 2024, the company has
                                                                   successfully acquired ~53% of the maximum number
                            1,425                       1,000      of shares, using ~40% of the allocated fund.
                                                                 ▪ The primary objective of the share buyback
                                                                   program is to bolster investor confidence.

         758
                                        398




     Realization(1)        Maximum   Realization(1)    Maximum


(1) As of September 2024




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 Guidance for 2024

FY 2024 sales guidance:
▪ Value growth 6 - 10%
▪ Volume growth 4 - 8%
Planned actions in 2024:
▪ Launch new products in various segments and
     accelerate the deployment of tinting machines at
     retail outlets.
▪ Expand the distribution centers to strengthen
     product penetration and market presence.
▪ Elevate our service quality to deliver exceptional           Painting a Beautiful Picture of
     value to customers.                                                 Indonesia
▪ Proceed with the share buyback program.
▪ Optimize internal operations and strengthen ESG
     initiatives to drive efficiency and sustainable growth.




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