PUBLIC EXPOSE - indocement.co.id · PUBLIC EXPOSE Jakarta, 18 March 2016 . AGENDA Sekilas...

PUBLIC EXPOSE Jakarta, 18 March 2016

AGENDA

Sekilas Indocement

Kondisi Pasar Semen Domestik Saat ini

Laporan Keuangan 2010

Rencana Strategi Investasi

Tinjauan 2011

Indocement at Glance

Current Domestic Market Condition

Financial Update 2015

Investment Plan Strategy

Outlook 2016

Q & A

Corporate Social Responsibility and Awards

2

AGENDA

Sekilas Indocement




Outlook 2016

Q & A



3

INDOCEMENT HISTORY 1985

PT Indocement Tunggal Prakarsa (“Indocement”) incorporated following

merger of 6 companies owning 8 cement plants

1989 Public listing of Indocement on the Indonesia Stock Exchange

1991

Acquired the 9th plant in Palimanan

Completed Surabaya cement terminal

Started ready-mix concrete business

1996-1999 Completed the 10th in Palimanan and 11th plants in Citeureup

2001 HeidelbergCement Group became a major shareholder through its

subsidiary Kimmeridge Enterprise Pte. Ltd.

2003 Kimmeridge Enterprise Pte. Ltd. transferred shares in Indocement to HC

Indocement GmbH

2005 Introduced Portland Composite Cement (“PCC”) product to Indonesian

market

2006 HC SE Asia GmbH, was merged into HeidelbergCement AG which then

controlled 65.14% shares of Indocement

2007 Acquisition of 51% stake in PT Gunung Tua Mandiri

Completed modification of the 8th plant which provided an additional

annual capacity of 600,000 tons of cements

2014 Commissioning of new grinding mill (VRM) at Citeureup in January 2014

Acquired 12th Plant via merger with PT Indo Kodeco Cement 2000

2010

Additional capacity of 1.5 mt cement mills capacity by August 2010 in

Cirebon Factory

2013

On March 25, 2013, the Company has signed the agreement concerning

the equipment supply and engineering with Tianjin Cement Industry Design & Research Institute Co,.Ltd. as part of the construction of a new brownfield project with the capacity of 4.4 mt in Citeureup

Acquisition of PT Tarabatuh Manunggal

2009 Placement of 14.1% HeidelbergCement’s shares in June 2009

4

INDOCEMENT TODAY Leading Indonesian producer of quality & specialty cement products

Second largest cement manufacturer in Indonesia, listed on the

Indonesia Stock Exchange.

Integrated cement operations with a total current production capacity of

20.5mt of cement.

Diversified product range including

PCC, Portland Cement I, II and V, Oil Well Cement, and

The one and only White Cement producer in Indonesia to date.

One of the world’s largest cement producers, HeidelbergCement

Group, is the majority & controlling shareholder – 51%, Salim – 13%

and Public – 36%.

As of December 31, 2015, Indocement’s market capitalization is

approximately at IDR 82 trillion (IDR 22,325/share) - one of the largest

in IDX.

As end of 2015, almost 7,000 employees (Cement 4,805; RMC &

Aggregates 2,123).

Well established “Tiga Roda” brand.

5

BOARD OF COMMISSIONERS & BOARD OF DIRECTORS

Board of

Commissioners

Dr. Albert Scheuer

President

Commissioner

Dr. Lorenz Naeger

Commissioner

Daniel Gauthier

Commissioner

Tedy Djuhar

VP Commissioner,

Independent

Commissioner

I Nyoman Tjager

VP Commissioner,

Independent

Commissioner

Dr. Bernd Scheifele

Commissioner

Board of Directors

Kuky Permana

Independent

Director

Franciscus

Welirang

VP Director

Hasan Imer

Director

Ramakanta

Bhattacharjee

Director

Troy Dartojo

Soputro

Director

Daniel Fritz

Director

Christian

Kartawijaya

President Director

Benny S. Santoso

Director

Daniel Lavalle

Independent

Commissioner

Tju Lie Sukanto

Director

6

INDOCEMENT’S BUSINESS STRUCTURE Cement is the core business comprising over 90% of sales

INDOCEMENT

CEMENT RMC OTHERS

Citeureup Factory

9 plants

Palimanan Factory

2 plants

Tarjun Factory

1 plant

PT Pionirbeton Industri &

PT Indomix Perkasa –

37 batching plants in

Jabodetabek, West Java,

and Central Java –

capacity more than 4.0

million m3.

PT Dian Abadi Perkasa –

99.9% (Cement Distributor)

PT Multi Bangun Galaxy –

99.9% (Terminal-Land

Operation)

PT Pama Indo Mining - 40%

(Mining Services in Tarjun)

PT Bahana Indonor – 99.9%

(Owns 1 ship and 1 floating

terminal)

PT Cibinong Center Industrial

Estate - 50% (Industrial

Estate in Citeureup)

PT Mineral Industry

Sukabumi

99.9% (Trass Quarry)

PT Lintas Bahana Abadi -

49% (Owns 1 floating

terminal)

AGGREGATES

PT Mandiri Sentra

Sejahtera – 99%

(Aggregates Business)

PT Tarabatuh

Manunggal – 99.9%

(Aggregates Business)

7

INDOCEMENT FACTORY AND TERMINAL LOCATIONS

Citeureup Factory

9 plants with

production

capacity of 13.8mt

Tj. Priok Terminal

Palimanan Factory

2 plants with

production capacity

of 4.1mt

Surabaya

Terminal

Lombok Terminal

Tarjun Factory

1 plant with

production capacity

of 2.6mt

Banyuwangi Terminal

Samarinda Terminal

Denpasar Terminal

Cigading Terminal

Sepanjang

Terminal

Citeureup Factory is one of the largest integrated factory complexes in the world.

State-of-art technology with some of the most efficient kilns in operation today.

Current total capacity is 20.5 mt of cement.

Cement distribution using train for some locations.

AGENDA





Outlook 2016

Q & A



9

10

INDONESIAN CEMENT MARKET GROWTH

Large infrastructure projects (MRT, road,

rail, harbor, airport), more expected to

come - MP3EI

Growing middle class with growing

income base

Urbanization

Effects on Demand

Source: ASI Published data

Effects on Supply

A lot of new capacity coming this year and

next year

Increasing gap between supply and demand due to higher growth

in capacity addition vs. growth in demand

40.827.5 31.5 31.9 34.2 38.1 38.430.2 61.059.958.055.048.0

+1.8% +1.5% +0.9%

+5.5%+3.3% +1.8%+4.2%

+11.4%

+17.7%

+6.2%+9.7%+7.0%

+14.5%47.144.9 45.5

72.2

47.1

53.0

48.046.246.1

78.0

64.2

59.3

54.3

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Domestic Consumption Consumption Growth Domestic Capacity

CURRENT TRADING – December 2015 Indocement sales volumes comparison

Indocement’s domestic sales volume in 2015 decreased by 7.7% YoY.

Export sales volume increased by 37% to 213.2 k tons (previous year: 155.7 k tons).

11

15.4

9.6 10.010.7

12.3 11.812.8

17.9 18.0 18.5 17.1

0.140.1 0.220.61.01.62.33.83.2

2.5

0.1

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Domestic Export

29.7%30.6% 30.9%

31.7%30.2% 30.9% 31.5% 32.0%

30.4% 30.4%

27.5%

Market Share

Domestic Consumption Growth & Market Share per Region -

YTD December 2015

12

Regions Year-to-Date (in Tons) 2015-12 2014-12

2015 2014 Inc./Dec. INTP SMGR SMCB INTP SMGR SMCB

Jakarta 5,580,024 5,782,219 -202,195 -3.5% 41.1% 19.0% 25.1% 40.5% 25.2% 27.2%

Banten 3,307,709 3,204,137 103,572 3.2% 45.7% 28.6% 15.4% 45.3% 36.1% 18.6%

West Java 8,933,035 8,842,493 90,542 1.0% 51.6% 23.1% 16.4% 58.3% 24.3% 17.4%

Central Java 7,245,553 6,907,373 338,180 4.9% 36.9% 41.5% 18.2% 40.9% 40.3% 18.8%

Yogyakarta 940,386 998,579 -58,193 -5.8% 20.9% 37.1% 40.7% 25.0% 40.0% 35.0%

East Jawa 8,100,049 7,997,367 102,682 1.3% 13.0% 69.3% 11.9% 13.4% 71.2% 10.4%

Java 34,106,755 33,732,168 374,587 1.1% 36.2% 38.2% 17.7% 38.8% 40.4% 18.3%

Sumatera 13,072,169 12,492,473 579,696 4.6% 10.6% 43.6% 14.6% 14.1% 42.9% 14.7%

Kalimantan 4,087,810 4,546,680 -458,870 -10.1% 27.2% 52.5% 9.7% 29.6% 50.2% 11.1%

Sulawesi 4,879,593 4,527,959 351,634 7.8% 11.2% 62.1% 1.3% 13.3% 63.1% 0.9%

Nusa Tenggara 3,503,499 3,335,788 167,712 5.0% 33.0% 37.0% 5.7% 33.4% 38.9% 5.4%

East Indonesia 1,357,647 1,274,375 83,273 6.5% 18.6% 56.0% 1.2% 20.9% 56.8% 0.7%

Outside Java 26,900,720 26,177,274 723,446 2.8% 16.5% 48.1% 9.6% 19.5% 47.8% 9.8%

Indonesia 61,007,475 59,909,442 1,098,033 1.8% 27.51% 42.6% 14.2% 30.4% 43.7% 14.6%

SALES VOLUME

Domestic Sales Volume

Thousand tons Export Sales Volume

Thousand tons

Decrease of domestic sales volume compared to last year

13

4,2

19

4,5

14

4,1

87

5,0

54

4,2

96

4,6

76

4,2

26

5,3

01

3,947 4,300

3,965

4,870

-

1,000

2,000

3,000

4,000

5,000

6,000

Q1 Q2 Q3 Q4

2013 2014 2015

10

67

10

6

34

17

26

78

35

21

52

74 66

-

20

40

60

80

100

120

Q1 Q2 Q3 Q4

2013 2014 2015

AGENDA





Outlook 2016

Q & A



14

CONSOLIDATED INCOME STATEMENT

15

Q4 2015 Q4 2014 Change

Sales Volume (k Tons)

In Billion IDR

Net Revenues 17,798.1 19,996.3 -11.0%

Cost of Revenues -9,888.9 -10,890.0 -9.2%

Gross Profit 7,909.1 9,106.2

as % of Net Revenues 44.4% 45.5%

Operating Expenses -2,879.7 -3,226.5 -10.7%

Other Operating Income /

(Expenses)27.5 121.1 -77.3%

Operating Income 5,056.9 6,000.9


EBITDA 6,010.6 6,879.1


Finance Income (Cost) 562.9 790.1 -28.8%

Equity in Net Earnings of

Associated Companies 25.3 24.5 3.3%

Income for the period 4,356.7 5,293.4 -17.7%

TOTAL COMPREHENSIVE

INCOME FOR THE PERIOD4,258.6 5,165.5 -17.6%

17,295

-15.7%

-12.6%

18,654 -7.3%

-13.1%

MANUFACTURING COSTS

27%

17%

26%

10%

20%

Fuels

Electricity

Materials

Labour

ManufacturingOverhead

Dependent on macroeconomic drivers:

1. Exchange rate move of IDR vs. USD Approximately 50-60% of costs related

to foreign currency, such as: Fuels,

Materials and Manufacturing

Overheads

2. Coal price Indonesia’s coal reference price (HBA)

decreased by 9% since the beginning

of 2015

3. Electricity Electricity costs policy (PLN Pricing

Policy)

4. Inflation rate Labor and raw material costs follow

Inflation rate trend

Manufacturing Cost at Indocement

Stabilization of Indonesian Rupiah and decrease of energy cost will be good catalyst for

cement industry

16

OPERATIONAL EFFICIENCY IMPROVEMENTS IN 2015

Operating the most EFFICIENT Kiln:

Kiln 1 & 2 (the oldest plants and inefficient)

have not operated for 7-8 months during low

demand

VRM was fully commissioned in 2015

Prioritizing supply to the closest market to

cement factories and terminals:

To save logistics cost, cement is supplied to the

closest location to factories and terminals (Java,

South Sumatera, Kalimantan and Lombok)

Adding bulk cement supply in Java

1

2

These initiatives have further enhanced margins

17

AGENDA





Outlook 2016


Q & A


18

1 brownfield project with capacity of 4.4 mio ton and investment cost of Rp5.5–6 trillion (first

clinker by end of Q1/2016)

1 unit Aero Derivative Gas Turbine (ADGT) to supply 73 MW (including power supply from

Steam Turbine) to Citeureup Factory with electricity cost cheaper than current PLN cost

(ADGT & Steam Turbine will run in full by Q3/2016)

1 cement and packing terminal in Pontianak to strengthen bagged cement supply in West

Kalimantan area (ready by Q2/2016)

2 greenfield or brownfield projects with each capacity of 2.5 mio ton one in Central Java and

one outside Java are under preparation by taking into account market condition

16.6 30-33 17.1 18.6 20.6 25

2005 2007 2010 2014 2016 2020/2025

Million Tons

+ 0.6 mt + 1.5 mt

+ 1.9 mt + 4.4 mt

+ 5-8 mt

Strategically well positioned to capitalize on further demand

CAPACITY EXPANSION & GAS TURBINE POWER SUPPLY TO

PARTICIPATE IN INDUSTRY GROWTH

READY-MIX CONCRETE EXPANSION • Strengthening Ready-Mix Concrete business

particularly high-grade quality in order to meet the

increase demand of infrastructure development in

Indonesia.

• Current focus is on infrastructure projects and its

domino-effect on development of residential,

industrial area and high rise building.

• In 31 December 2015, sales volume decreased by

14.4% YoY due to slowing down of construction

activities across nation and lower economic growth

generally.

• Pionirbeton, a subsidiary, is the market leader in

RMC business.

20

800630 683

930 9561,221

2,429

4,430

3,947

3,3773,517

100

400

700

1,000

1,300

1,600

1,900

2,200

2,500

2,800

3,100

3,400

3,700

4,000

4,300

4,600

4,900

20052006

20072008

20092010

20112012

20132014

2015

000m3

AGENDA





Outlook 2011

Q & A

Outlook 2016


21

Outlook for 2016

Market Condition

• National market 2016 estimated to grow about 3%-5%.

• Strong concrete and bulk cement demand anticipated due to Government's infra projects.

Secured concrete market by signing exclusive and long-term contract of andesite and

sand supply from Ketapang and Belitung.

• Several new market players expected to enter the market.

• Possible price pressure in weak quarters but stabilizing trend in stronger months.

Indocement

• P14 will be ramped up quickly to capitalize on cost savings.

• Clinker exports will be done in low demand periods.

• Lower Capex spending due to finalization of our brownfield project P14.

• Strong balance sheet with no gearing provides sufficient headroom for leading the market

well especially in our home market.

AGENDA





Outlook 2011

Q & A

Outlook 2016


23

Corporate Social Responsibility (CSR)

5-Pillars: CSR Program Applications

Fostering, Scholarship, Production Training, SMEs Training, Learning

Facilities, School Library, Indocement Apprentice School, Truck Operator

Training, Cooperation with Other Institutions, Skill Training

Mobile Clinic, Health Education, Providing Additional Food/Supplement,

Clean Water Infrastructure, Cataract Operation

SMEs Rolling Capital, Upgrade Current Business, Local Purchase

Social Activity Aid, Culture, Religion, Sport and Infrastructure

Building/Improvement, RUTILAHU

Community Security, Linmas Training, Linmas Uniform Aid, Limnas

Coordination Meeting

SDP Training Center and Community Empowerment (P3M), Bioenergy, BMT,

IWEC, UPK

Resilience of climate change (Ministry of Environment and Forestry), includes: Resilience of Environment, Food Security, Resilience of Water, Resilience of Public Health

Villages that receive PROKLIM from BLHD of West Java Province

Achievement of Proklim Program

Currently, Proklim development is progressing at Randakari, Ciwandan Sub-district, Cilegon, with main activity

“Bank Sampah Berkah Lestari “ and “Kelompok Rumah Pangan”.

No Location Village Sub-district Regency/City Province

Biogas Use

Compost House

Water Conversion Optimization of Irrigation

Limited Land Utilization Rain Water Utilization

Fishery Bio-pore Campaign Infiltration Well Clean Water

Animal Husbandry Compost Processing

Mushroom Cultivation

Municipal Management

Fishery Cultivation

Water Pond

Fishery Product

Achievement of Proklim Program

Agricultural Product

Indocement supports SMP

Bantarjati – Citeureup, Bogor,

and SMPN 1 Gempol, Cirebon,

to embody “Adiwiyata” school

that cares and has environment

culture.

● Awareness

● Knowledge

● Attitude

● Skill

● Participation

Achievement of “Adiwiyata” Program Commitment and persistance of all components in

both schools eventually resulting an achievement in

ADIWIYATA NATIONAL LEVEL

Achievement of “Adiwiyata” Programaa

Adiwiyata school is also demanded to implement “influence program” for other schools

Mangrove Conservation at Langadai Village, is a community care in preserving ecological balance, particularly for marine biota. The community has realized the imporant role of mangrove as an education and tourism object which provides economic benefit for surrounding. The area of mangrove is about 4 hectars.

Mangrove Conservation at Langadai Village, South

Kalimantan

Mangrove Conservation at Langadai Village, South

Kalimantan

Mangrove fruits process training to become food has been provided to small enterprises and housewives. To ensure the sustainability of this conservation program, other programs have been integrated, such as: • Endangered animal sanctuary “IWEC”

– for wildlife area of bekantan. • Waste Bank “Andesia” – to maintain

cleanliness and handycraft materials.

Batik Ciwaringin Cooperative

Ciwaringin Batik Cooperative was re-

developed in 2012 to support economy

and autonomy at Ciwaringin Village,

Ciwaringin Sub-district, Cirebon

Regency.

● Previously, local craftsman had

various obstacles, such as limited

production, bad quality and promotion

difficulty.

● Currently, there are 43 craftsman who

carry out Cirebon “Traditional Batik

Painting”.

● Using natural colors. Research is

cooperated with Gadjah Mada

University.

● The quality has been recognized in

national and overseas, routinely

participate in various exhibitions.

Batik Ciwaringin Cooperative

PKBL is a lending program to the business

partners for additional capital to improve their

business.

● Indocement has cooperated with Bank

Mandiri (2008 – 2013) and Bank BRI (2005

– present) for this program.

● Indocement recommends visible SMEs to

obtain additional capital.

● Together with banks, Indocement is also

assisting.

● Total loans disbursed reaches Rp8.7 billion.

● Non-Performance Loan (NPL) for 2015 has

reached 10%.

● 710 SMES successfully joined, spread over

on four location (Citeureup, Palimanan,

Tarjun & others non-plant areas of

operation).

Community Development Partnership Program (PKBL)

Number of SMEs

One of the product

of SMEs in the field

of handicrafts

CSR Programs at Pati up to middle of 2015, among others:

“Srikandi Cooperative”, Tambakromo Village has total 470 members.

Preservation of “Pancur Cave” at Jimbaran Village, Kayen Districts, as a tourist

spot managed by local community.

Conservation and water resources management at Brati dan Maitan villages.

“Srikandi Cooperative” “Pancur Cave” Water Sources

CSR Programs at Pati, Central Java

Another CSR Programs…

• 17 February - Indocement received an award from Indonesia Journalist Association (PWI) from

Bogor Regency for good contribution to the local media.

• 6 May - Three of Indocement’s cultivated villages in Citeureup Factory, received Proklim Awards

from the Ministry of Environment of Republic of Indonesia.

• 4 June - Indocement received awards for five categories at “Indonesia Green Awards 2015”,

namely:

• Developing New and Renewable Energy

• Developing Integrated Waste Processing

• Saving Water Resources

• Developing Biodiversity

• Pioneer of Pollution Prevention

• 10 June - Indocement received its 10th “Corporate Image Award 2015” for Cement category.

• 10 June - Indocement triumphed as a “Care National Company” from Pakuan Raya Daily.

• 1 July - Semen Tiga Roda received its 9th “Top Brand Award" for Cement category and Mortar

category for its Mortar TR30.

• 23 July - Indocement won six awards in “Culture Based Community Empowerment Exhibition

(GPMB) Awards 2015” for categories: − Platinum Award, SDGs Goal 4 − Gold Award, SDGs Goal 2 − Gold Award, SDGs Goal 3 − Gold Award, SDGs Goal 14 − Silver Award, SDGs Goal 4 − Best 3, Individual Category

• 7 August - Indocement received an award from West Java Province Government as an Active

Company for Participating in the Empowerment of Medium & Small Scale Business (UMKM) in

Bogor Regency during 2015.

Awards 2015

• 11 August - Indocement received an award from the National Search & Rescue Agency

(Basarnas) of West Java Province for its active participation during the search of avalanche

victims of Gunung Kuda, Cirebon Regency.

• 20 August - Indocement’s Citeureup Factory and Palimanan Factory received Gold Plaque

and Gold Certificate Reward from the Police Force of Indonesia for achieving certification of

Security Management System (SMP).

• 25 August - Indocement received an award in "Warta Ekonomi Top 10 Social Business

Innovation Companies Awards 2015”.

• 30 September – Semen Tiga Roda received “Indonesia Best Brand Platinum Awards 2015”

from SWA Magazine and MARS.

• 8 October - Indocement received two awards in the International Convention Quality Control

Circle (ICQCC), namely: Gold and Best Performance.

• 8 October - Indocement Wildlife Education Center (IWEC) received Indonesia Biodiversity

Award from Center of Study and Biodiversity Conservation of Indonesia.

• 16 November - Indocement received “Top 50 Public Listed Companies” award in the 7th IICD

Corporate Governance Conference and Award.

• 25 November - Indocement, for the second time, achieved “Best of the Best 2015” of top 50

public companies from Forbes Magazine.

• 26 November - Indocement received an award of Dutiful Taxpayer in 2015 from the

Directorate General of Taxation Regional Office, DJP Central and South Kalimantan Tax

Office, Batulicin.

• 4 December - Indocement received an award of Dutiful Taxpayer 2015 from the Tax Office

Cileungsi, Bogor.

Awards 2015

• 14 December - National Adiwiyata Awards for Indocement Cultivated Schools, SMP Bantarjati,

Klapanunggal Sub-district, Bogor Regency and SMPN 01 Gempol, West Palimanan Sub-district,

Cirebon Regency.

• 15 December - Indocement triumphed “The Best Disclosure On Waste Utilization“ on

Sustainability Reporting Awards 2015 conducted by National Center for Sustainability Reporting.

• 16 December - Three of Indocement factories received Level 5 of “Green Industry Awards” from

the Ministry of Industry of Republic of Indonesia.

Awards 2015

Thank you

PUBLIC EXPOSE - indocement.co.id · PUBLIC EXPOSE Jakarta, 18 March 2016 . AGENDA Sekilas...

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Transcript of PUBLIC EXPOSE - indocement.co.id · PUBLIC EXPOSE Jakarta, 18 March 2016 . AGENDA Sekilas...