Conference Call. FY2008 Results: Delivering Higher Performance

Transcription

1 Conference Call FY2008 Results: Delivering Higher Performance March 17, 2009

2 SGG IS THE #1 CEMENT COMPANY IN INDONESIA BRIEF BRIEF HISTORY HISTORY 1957 Inauguration of Gresik I 1991 Initial Public Offering, Market Cap IDR0.63tn, resulting shareholding post IPO: Government of Republic of Indonesia: 73% Public: 27% 1995 Acquisition of PT Semen Padang (Persero) and PT Semen Tonasa (Persero) 1998 Cemex became a strategic partner by buying a 14% stake, Market Cap IDR 4.9tn 1999 Cemex upsized its stake to 25% by end Total installed production capacity: 16.92mm t.p.a., Market Cap IDR 10.6tn 2006 Blue Valley Holdings bought Cemex s 24.9% stake in SGG 2008 Total Installed Capacity: 18.00mm t.p.a, Market Cap IDR 24.8tn OWNERSHIP OWNERSHIP STRUCTURE1 1 Blue Valley Holdings Pte. Ltd. (24.9%) The Government of the Republic of Indonesia (51.0%) SGG SGG CAPACITY CAPACITY BUILD-OUT BUILD-OUT (MM (MM TONS) TONS) Current capacity = 18.0 mm tons Public (24.1%) PT Semen Gresik (Persero) Tbk. PT Semen Padang (99.99%) PT Semen Tonasa (99.99%) Five subsidiaries Non-cement producers Six subsidiaries Non-cement producers ¹ As of December 2008 Striving to maximize value 1

3 SGG s PRODUCTION FACILITIES ARE WELL SUPPORTED BY STRATEGICALLY LOCATED MARKETING AND DISTRIBUTION FACILITIES Aleh Kuala Lumpur Belawan Singapore Bitung Batam Samarinda Teluk Bayur Installed Cap.: 5.9 mn tons Cement Plant Packing Plant Port Warehouse Tanjung Priok Sumatera West Java Serang Tangerang Bogor Cibitung Bandung Tasik Malaya Cirebon Narogong Ciwandan Jakarta Central Java Tegal Purwokerto Kudus Magelang Solo/Palur Alas Tuwo Mojopahit Sayung Tuban Java Kalimantan Banjarmasin Surabaya DI Yogyakarta Lempuyangan East Java Janti Margomulyo Tanjung Wangi Bangkalan Swabina Pelabuhan Tuban Bali Bali Tabanan Denpasar Singarajan Installed Cap.: 8.3 mn tons Biringkasi Makassar Lombok Pelabuhan Gresik Palu Sulawesi Maluku Ambon Installed Cap.: 3.5 mn tons Papua Distribution warehouses in all areas of Java, Bali, Sumatra, Kalimantan, Sulawesi and Irian 15 large packing plants Nationwide distribution network Operate 4 special sea ports: Padang, Tuban, Gresik, Biringkassi Total installed cap. EoY 2007: 17.1 mn tons and EoY 2008: 18.0 mn tons Striving to maximize value 2

4 INDUSTRY STRUCTURE AND PLANTS LOCATION 1 Kuala Lumpur Singapore Total Installed National Capacity in 2008: mn tons/ year (EoY 2007:45.72 mn tons cement / year). National cement consumption in 2008: mn tons (11.5% growth y-o-y) and 34.2 mn tons in 2007 (6.6% growth y-o-y). Domestic utilization rate in 2008: 82% (EoY 2007: 75%) SGG Semen Andalas Indonesia Lhok Nga, Nanggroe Aceh D. Cap. 1.6 mn tons (under plant reconstruction) Semen Baturaja Palembang, South Sumatera Cap mn tons 4. Indocement Tunggal Perkasa Jakarta Cap mn tons PT Semen Gresik (Persero) Tbk Total Total Cap. Cap. 18,0 18,0 mn mn tons tons Semen Padang West Sumatera, Cap. 5.9 mn tons Semen Gresik East Java, Cap. 8.6 mn tons Semen Tonasa South Sulawesi, Cap. 3.5 mn tons 5. Holcim Indonesia Jakarta Cap. 7.9 mn tons Semen Bosowa Maros Maros, South Sulawesi Cap. 1.8 mn tons Semen Kupang Kupang, East Nusa Tenggara Cap mn tons Striving to maximize value 3

5 INDONESIA HAS EXPERIENCED SOLID ECONOMIC AND DOMESTIC CEMENT CONSUMPTION GROWTH DOMESTIC CEMENT CONSUMPTION, CEMENT GROWTH, GDP GROWTH AND CONSTRUCTION GROWTH IN INDONESIA (mio tons) 60.0 Domestic consumption (LHS) Cement growth (RHS) Construction growth (RHS) GDP growth % (RHS) 14.0% % 9.7% 9.0% 8.3% *) 7.48% 7.3% 8.2% 6.3% 5.8% 5.7% 5.1% 5.6% 5.4% 6.6% 6.1% 4.4% 4.7% 4.2% 4.1% Growth: Growth: Growth: Growth: Growth: Growth: 1.1% 1.8% Growth: 5.8% 1.1% 9.7% 4.2% 1.8% 6.6% 19.4% % 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Source: Indonesian Cement Association, *) Q Construction Growth - Reuters Striving to maximize value 4

6 MARKET LEADER IN TERMS OF REVENUE, CAPACITY & MARKET SHARE REVENUE REVENUE SHARE SHARE 9M2008 9M2008 Player % Player % SGG 45.1% Total Revenue = IDR 19,488tn CAPACITY CAPACITY SHARE SHARE Player % Others 7.72% Semen Gresik 18.4% Semen Padang 12.6% SGG Total 38.7% DOMESTIC DOMESTIC MARKET MARKET SHARE SHARE Others Semen 10.5% Gresik 21.9% Player % Semen Padang 13.4% SGG Total 43.7% Semen Player 1 Tonasa 36.6% 7.7% Total Capacity = mn tons Player 1 Semen 31.6% Tonasa 8.4% Total Consumption = mn tons Leading market share for the past several years Source: Research reports, management plan Striving to maximize value 5

7 MARKET BY GEOGRAPHY (FY2008) Indonesia Java remains as the largest market *) 6.4% 5.0% 2.5% 6.8% Sumatera 23.5% Java 55.8% East of Indonesia Nusa Tenggara Kalimantan Sulawesi Indonesia Market Share in Java *) 0.0% 20.7% Holcim Ind Indocement 40.3% 1.3% SG Group 37.7% Others *) *) Source: Source: ASI ASI (Indonesia (Indonesia Cement Cement Association) Association) Striving to maximize value 6

8 MARKET BY. cont d Indonesia Market Share in Sumatera *) 7.2% 11.9% 0.8% 15.0% 17.5% Indocement S Andalas S Bosowa S Baturaja Holcim Indo 47.6% SG Group Indonesia Market Share in Kalimantan *) Holcim 9.6% Bosowa 5.8% Indocement 31.5% SG Group 53.1% *) *) Source: Source: ASI ASI (Indonesia (Indonesia Cement Cement Association) Association) Striving to maximize value 7

9 MARKET BY. cont d Indonesia Market Share in Sulawesi *) Bosowa 21.4% Indocement 13.8% SG Group 64.8% Indonesia Market Share in Eastern Part *) Kupang 0.8% Bosowa 11.2% Holcim 3.2% SG Group 49.3% Indocement 35.5% *) *) Source: Source: ASI ASI (Indonesia (Indonesia Cement Cement Association) Association) Striving to maximize value 8

10 FOCUS ON COST & REVENUES MANAGEMENT COGS/ton Rp (full amount) SGG domestic average selling price Rp/ton COGS / Ton FY 2007 FY2008 CHANGE (%) Rp Packaging 28,274 34,830 23% 750, , ,000 Fuel 70, ,959 52% 675, ,000 Electricity 50,336 51,681 3% 625, ,000 Maintenance 31,823 35,489 12% 575, ,000 Transportation 47,322 59,568 26% 525, , ,000 Other 102,497 99,664 (3%) Jan Feb Mar Apr Mei Jun Jul Agt Sept Okt Nop Des COGS 330, ,191 17% Striving to maximize value 9

11 SGG HAS EXPERIENCED ROBUST FINANCIAL GROWTH Revenue Gross Profit Operating Profit Ebitda Net Profit (Rp billions) Revenue Gross Profit CAGR ( ) 19% 27% ,601 4, ,210 5,355 Change (%) Operating profit 37% 2,397 3, EBITDA Net profit Total assets Total Equity 29% 49% 12% 22% 2,855 1,775 8,515 6,627 3,867 2,524 10,603 8, Striving to maximize value 10

12 FY2008 KEY FINANCIAL HIGHLIGHTS Description (Rp bn) Revenue Cost of Revenue Gross Profit FY2007 9,601 5,600 4,001 FY ,210 6,855 5,355 Change (%) Strong performance in FY2008: Net income grew 42.1% y-o-y, on 27.2% higher revenue. Operating Expenses 1,604 1, Operating Income 2,397 3, EBITDA 2,849 3, Pre-tax Profit 2,560 3, Net Income 1,775 2, EPS (full amount) Total Assets 8,515 10, Total Liabilities 1,796 2, Total Equity 6,627 8, Gross Margin Operating Margin EBITDA Margin Pre-tax Margin Net Margin ROA ROE Debt to Equity Striving to maximize value 11

13 PRODUCTION OPTIMIZATION Production estimates (mm tons) Incremental production from/debottlenecking/optimization plans Installed base production mm mm tons tons additional additional capacity capacity in in through through debottlenecking debottlenecking project project Total cost production optimization program ( ): USD 86.7 mio Striving to maximize value 12

14 10. PROJECTION DOMESTIC PRODUCTION DEVELOPMENT (Mio Ton) PROJECTION PRODUCTION DEVELOPMENT (Mio Ton) Base production New production ST 3.5 ST 4.1 ST 4.2 ST SP SP SP SP SGG SGG SGG SGG SG SG SG SG Striving to maximize value 13

15 INVESTMENT COSTS OF STRATEGIC PROJECTS New Plants Location Capacity (mn tons) Investment (US$ mn) Start Construction Completed Investment US$/Tons Java Sulawesi Sub Total Power Plants Location Capacity (MW) Investment (US$ mn) Start Construction Completed Investment US$ mn/mw Sulawesi 2 x Sub Total TOTAL CAPEX US$ 784 Striving to maximize value 14

16 2009 STRATEGIC INITIATIVES Revenue Management: Maintain operating margin Maintain market share. Cost Management: Energy Cost: minimize oil consumption, decrease coal consumption index, increase energy alternative use, decrease electricity consumption index, stabilize the productivity production level. Procurement & Inventory Management: improving procurement synergy among the group, joint inventory of raw material and spare parts, improve centralizing coal procurement. Maintenance Cost: lowering spare-parts use index, improve the total predictive maintenance & autonomous program. Packaging Cost: lowering craft paper index, increase the use of local craft paper. Transportation: improve cross bagging initiatives, improve the performance of packing plants among the group Capacity & Energy Management: De-bottlenecking/optimization project: additional capacity of 1,000,000 tons cement. The construction of 2 (two) new cement plants in Java and Sulawesi with installed capacity of 2.5 million tons of cement respectively. The construction of the plant in Java to be completed in 2012 and the cement plant in Sulawesi in The constructions of 2 x 35 MW power plants in Sulawesi, to be completed in Striving to maximize value 15

17 T h a n k y o u IMPORTANT NOTICE THIS PRESENTATION IS NOT AND DOES NOT CONSTITUTE OR FORM PART OF, AND IS NOT MADE IN CONNECTION WITH, ANY OFFER FOR SALE OR SUBSCRIPTION OF OR SOLICITATION, RECOMMENDATION OR INVITATION OF ANY OFFER TO BUY OR SUBSCRIBE FOR ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT, COMMITMENT OR INVESTMENT DECISION WHATSOEVER. THE SLIDES USED IN THIS PRESENTATION ARE STRICTLY CONFIDENTIAL AND HAVE BEEN PREPARED AS A SUPPORT FOR ORAL DISCUSSIONS ONLY. THE INFORMATION CONTAINED IN THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER PERSON, IN WHOLE OR IN PART. This presentation includes forward-looking statements, which are based on current expectations and forecast about future events. Such statements involve known / unknown risks uncertainties and other factors, which could cause actual results to differ materially from historical results or those anticipated. Such factors include, among others: economic, social and political conditions in Indonesia, and the impact such conditions have on construction and infrastructure spending in Indonesia; the effects of competition; the effects of changes in laws, regulations, taxation or accounting standards or practices; acquisitions, divestitures and various business opportunities that we may pursue; changes or volatility in inflation, interest rates and foreign exchange rates; accidents, natural disasters or outbreaks of infectious diseases, such as avian influenza, in our markets; labor unrest or other similar situations; and the outcome of pending or threatened litigation. We can give no assurance that our expectations will be attained. DISCLAIMER The information contained in this report has been taken from sources which we deem reliable. However, none of PT Semen Gresik (Persero) Tbk and/or its affiliated companies and/or their respective employees and/or agents make 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 Semen Gresik (Persero) Tbk, its affiliated companies and their respective employees and agents whatsoever and howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither PT Semen Gresik (Persero) Tbk, its affiliated companies or their respective employees or agents accepts liability for any errors, omission or misstatements, negligent or otherwise, in the report and any liability in respect of the report or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expresses disclaimed. Main Office: Main Building of Semen Gresik Jln. Veteran Gresik Indonesia Phone: (62-31) , Fax: (62-31) , Representative Office: Graha Irama Building, 11 th Floor, Jln. HR Rasuna Said, Kuningan, Jakarta Indonesia Phone: (62-21) Fax : (62-21) Striving to maximize value 16