PT Semen Indonesia (Persero) Tbk. And the Prospect of Indonesia Cement Industry. Corporate Presentation - April 2018

Transcription

1 PT Semen Indonesia (Persero) Tbk. And the Prospect of Indonesia Cement Industry Corporate Presentation - April 2018

2 Cement Companies in Indonesia Domestic Capacity 2017 Total Mio Ton 2017 SMGR market share 2017 was 40.8% despite of only 33.4% capacity share 2

3 Sales Volume April 2018 (in Ton) Semen Indonesia Group Industry - Domestic source: company data, Indonesia Cement Association 3

4 Domestic and SMGR s Market Consumption (up to April 2018) Type of Cement Domestic Demand SMGR Sales BULK 26.1% BAG 73.9% Ready-mix (infrastructure): ± 60% Fabricator (pre-cast, fiber cement, cement based industry): ± 35% Projects (mortar, render): ± 5% BULK 30.2% BAG 69.8% source: Indonesia Cement Association Demand Growth by Type Housing: ± 90% Cement based industry: ±10% 15,5% 13,6% 14,5% 5,5% 3,6% 2,5% 2,2% 2,0% 1,5% -1,4% Bag Bulk Retail (residential) sector is still the largest consumer of cement in Indonesia Bulk cement growth is higher than bag cement in the last two years. Bulk demand growth up to April 2018 was 20.1% while demand for bag was 2.3% 4

5 Market by Geography up to April 2018 Domestic Cement Demand SMGR Market Destination Sulawesi 12% Bali & Nusa Tenggara 4% East Indonesia 3% Sumatera 23% Kalimantan 7% Bali & Nusa Tenggara Sulawesi 5% 8% East Indonesia 2% Sumatera 22% Kalimantan 7% East Java 23% West Java, DKI Jakarta & Banten 12% Central Java & DIY 16% East Java 14% SMGR Market Share per Region Central Java & DIY 15% West Java, DKI Jakarta & Banten 27% 41,4% 40,6% 66,5% 40,9% 61,2% 44,5% Java represent 56% of Domestic cement consumption in Indonesia. 17,4% 32,0% Sumatera West Java, Central DKI Jakarta Java & DIY & Banten East Java Kalimantan Sulawesi Bali & Nusa Tenggara East Indonesia 5

6 Key Factors Supporting Domestic Cement Consumption Infrastructure Development Continuous increase in infrastructure budget (Rp Tn) 388,3 410,4 Cement Consumption per Capita (2016) 155,9 154,7 256,1 269, Source: Ministry of Finance Commercial & Industrial High growth in retail, commercial and institutional sector in urban and semi-urban area High growth industry segment (precast, light brick, cement fiber, pave, ready mixed concrete) LTV Policy Bank Indonesia loosening macro-prudential policies in the form of an increase in Loan to Value Ratio Interest Rate Average (ex China) = 462 kg BI policy on interest rate is expected to remain low which drives demand for housing loan 7,50 7,50 7,50 7,50 6,75 Potential Market The fourth largest population in the world: 267 millions people (2017) Demographic bonus: rapidly growing productive population in Indonesia Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 5,25 5,00 4,75 4,50 4,50 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 4,25 4,25 4,50 Sep 17 Dec 17 May 18 6

7 Strategic Projects (2017) Strategic Projects Capacity Investment Start Construction Completion Start up commercial Packing Plant North Maluku 500,000 ton/year IDR 66 Bio January 2017 Q Q Packing Plant Bengkulu 300,000 (bags) 200,000 (bulk) IDR 75 Bio February st Half st Half 2018 Waste Heat Recovery Power Generation (WHRPG) Tuban Plant 30.6 MW IDR 574 Bio Q Q Q Packing Plant North Maluku Packing Plant - Bengkulu Waste Heat Recovery Power Generation (WHRPG) Tuban Plant 7

8 Our facilities Kiln 1 unit 1 unit Integrated Cement Plant Kiln 5 location 17 Unit 29 Unit Grinding Plant 4 location Grinding Plant 1 unit Cement Mill Warehouse 6 Unit 30 location Packing Plant 30 location Grinding Plant 1 unit Cement Mill Sea Port 17 location Kiln 6 unit 9 unit Grinding Plant 1 unit Kiln 1 unit 2 unit Kiln 5 unit 11 unit Grinding Plant 3 unit Cement Mill Kiln 4 unit 6 unit 8

9 Opportunity Regional Cement Market 9

10 Financial Summary Q Operating Profit 28,8% 26,5% 22,2% 19,9% 12,0% 11,3% 7,06 7,15 5,98 5,20 3,34 0, Q Operating Profit Operating Profit Margin EBITDA Net Profit 33,1% 30,8% 27,5% 26,6% 21,9% 20,6% 16,9% 17,3% 19,4% 18,0% 7,2% 6,2% 8,10 8,30 7,43 6,96 5,40 1,19 5,37 5,56 4,56 4,52 2,01 0, Q EBITDA EBITDA Margin Q Net Income Net Income Margin 10

11 Cost of Revenue Breakdown Q COST STRUCTURE 19,4% 16,1% 10,0% 9,2% 8,2% 8,0% 7,9% 13,5% 2,8% 2,6% 1,8% 0,7% -0,3% Cost of Revenue Q1 2018: Rp 4,901 Bn 11

12 Balance Sheet Cash Balance (IDRbn) Total Interest Bearing Debt (IDRbn) Q Debt/EBITDA (x) Q Net Debt/Equity 1,93 1,98 20,80% 20,18% 0,93 11,10% 0,5 0,47 0, Q ,60% -0,45% 0% Q

13 Dividend Pay Out Dividen Pay Out (DPO) Dividend Per Share (DPS) 13

14 KEY STRATEGY (Growth) Strategy Refresh Supply Chain Optimization Centralize Marketing Centralize Procurement Cost Transformation & Enable Corporate Growth 14

15 Thank You 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 Indonesia (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 Indonesia (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 Indonesia (Persero) Tbk, its affiliated companies or their respective employees or agents accepts liability for any errors, omission or mis-statements, 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. Head Office: Gedung Utama Semen Indonesia Jalan Veteran, Gresik 61122, East Java Indonesia Phone: (62-31) , Fax: (62-31) , Representative Office: The East Tower, 18th floor Jalan Dr. Ide Anak Agung Gde Agung Kav. E3.2 No. 1 Jakarta 12950, Indonesia Telp.: (62-21) , ; Fax : (62-21)