PT Semen Indonesia (Persero) Tbk. And the Prospect of Indonesia Cement Industry - Corporate Presentation - August 2018 - IDX
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PT Semen Indonesia (Persero) Tbk.
And the Prospect of Indonesia Cement Industry
Corporate Presentation - August 2018
Cement Companies in Indonesia
Domestic Capacity 2017
Total
107.4 Mio Ton
2017
SMGR market share 2017 was 40.8% despite of only 33.4% capacity share
2
Sales Volume - August 2018 (in Ton) Semen Indonesia Group Industry - Domestic source: company data, Indonesia Cement Association Note: The market data is not final since one small player has not updated its sales volume. 3
Domestic and SMGR’s Market Consumption (up to August 2018)
– Type of Cement
Domestic Demand SMGR Sales
Ready-mix (infrastructure): ± 60%
Fabricator (pre-cast, fiber cement,
cement based industry): ± 35%
BULK Projects (mortar, render): ± 5%
26.2% BULK
30.7%
BAG
73.8%
BAG
69.3%
source: Indonesia Cement Association
Housing: ± 90%
Demand Growth by Type Cement based industry: ±10%
15,5%
14,5%
13,6%
Retail (residential) sector is still the largest
consumer of cement in Indonesia
5,5%
3,6%
2,5% 2,2% 2,0% Bulk cement growth is higher than bag cement in
1,5% the last two years. Bulk demand growth up to
-1,4%
2013 2014 2015 2016 2017
July 2018 was 12.3% while demand for bag was
2.0%
Bag Bulk
4Market Share (“MS”) by Geography – up to August 2018
SMGR is still the dominant player in all regions other than West Java & Jakarta where
the competition is more intense
SMGR MS SMGR MS
41.8% 39.6%
6.4% of total SMGR MS
national demand 59%
21.6% of total 8.1% of total
national demand national demand
2.2% of total
SMGR MS national demand
WEST JAVA, 17.4%
DKI JAKARTA,
BANTEN
26.5% of total SMGR MS
national demand 41.7% SMGR MS SMGR MS
66% 32%
CENTRAL JAVA
16 % of total EAST JAVA 5.6% of total
national demand 13.6% of total national demand
national demand
52018 - KEY STRATEGY
Supply Chain Optimization
(Growth)
Strategy Centralize Marketing
Refresh Centralize Procurement
Cost Transformation & Enable Corporate Growth
6Financial Summary 1H-2018
Operating Profit
28,8%
26,5%
22,2% 19,9%
12,0% 12,8%
7,06 7,15
5,98
5,20
3,34 1,70
2013 2014 2015 2016 2017 1H 2018
Operating Profit Operating Profit Margin
EBITDA Net Profit
33,1%
21,9% 20,6%
30,8% 16,9% 17,3%
27,5% 26,6%
19,4% 19,5%
7,2% 7,3%
8,10 8,30 5,37 5,56
7,43 6,96 4,56 4,52
5,40
2,60
2,01 0,97
2013 2014 2015 2016 2017 1H 2018 2013 2014 2015 2016 2017 1H 2018
EBITDA EBITDA Margin Net Income Net Income Margin
7Cost of Revenue Breakdown 1st Half 2018
COST STRUCTURE
20,9%
15,9%
13,0%
10,0% 8,6%
8,0% 7,0%
3,7% 3,5% 2,6% 4,3%
1,9% 0,7%
8Balance Sheet
Cash Balance (IDRbn) Total Interest Bearing Debt (IDRbn)
5.032 10.019 10.312
4.213
3.989
3.665
3.105 6.260
2.847
4.083 3.913 3.999
2013 2014 2015 2016 2017 1H 2018 2013 2014 2015 2016 2017 1H 2018
Debt/EBITDA (x) Net Debt/Equity
23,53%
1,93 1,93 20,80%
0,93 11,10%
0,5 0,47 0,54
0%
-0,60% -0,45%
2013 2014 2015 2016 2017 1H 2018 2013 2014 2015 2016 2017 1H 2018
9Key Factors Supporting Domestic Cement Consumption
Infrastructure Development Cement Consumption per Capita (2016)
Continuous increase in infrastructure budget
(Rp Tn) 410,4
388,3
256,1 269,1
155,9 154,7
2013 2014 2015 2016 2017 2018
Source: Ministry of Finance
Commercial & Industrial
High growth in retail, commercial and institutional Average (ex China) = 462 kg
sector in urban and semi-urban area
High growth industry segment (precast, light brick, Interest Rate
cement fiber, pave, ready mixed concrete)
BI policy on interest rate is expected to remain low which
drives demand for housing loan
LTV Policy 7,50 7,50
Bank Indonesia loosening macro-prudential policies in 6,75
the form of an increase in Loan to Value Ratio
5,25 5,00 5,25 5,50
4,75 4,50 4,50
4,25 4,25 4,50
Potential Market
The fourth largest population in the world: 267
millions people (2017)
Demographic bonus: rapidly growing productive Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec May June Aug
15 15 16 16 16 16 17 17 17 17 18 18 18
population in Indonesia
10Our facilities
Kiln 1 unit
Integrated Cement Plant 5 location
Cement Mill
1 unit Kiln 17 Unit
Cement Mill 29 Unit
Grinding Plant 4 location
Cement Mill 6 Unit
Grinding 1 unit Cement
Plant Mill Warehouse 30 location
Packing Plant 30 location
Sea Port 17 location
Grinding 1 unit Cement
Plant Mill
Kiln 6 unit
Cement Mill 9 unit
Grinding 1 unit
Plant Cement Mill
Kiln 4 unit
Kiln 1 unit Kiln 5 unit
Cement Mill 6 unit
Cement Mill 2 unit Cement Mill 11 unit Grinding 3 unit Cement
Plant Mill 11Opportunity Regional Cement Market
12Dividend Pay Out
Dividen Pay Out (DPO)
Dividend Per Share (DPS)
13Thank 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: Representative Office:
Gedung Utama Semen Indonesia The East Tower, 18th floor
Jalan Veteran, Gresik 61122, East Java – Indonesia Jalan Dr. Ide Anak Agung Gde Agung Kav. E3.2 No. 1
Phone: (62-31) 3981731 -2, 3981745 Jakarta 12950, Indonesia
Fax: (62-31) 3983209, 3972264 Telp.: (62-21) – 5261174, 5261175;
Fax : (62-21) – 5261176
www.semenindonesia.com
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