Pt Indocement Tunggal Prakarsa Tbk · IDX:INTP
Pt Indocement Tunggal Prakarsa Tbk — Q1 2017 Earnings Presentation
21 slides from Pt Indocement Tunggal Prakarsa Tbk's earnings presentation, May 8, 2017
Slide 1: Indocement Q1 2017 Results
INDOCEMENT HEIDELBERGCEMENTGroup
Slide 2: Indonesia Macroeconomic Overview
Indonesia Macroeconomic Overview INDOCEMENT World Bank anticipates Indonesia’s economy to grow by 5.3% in 2017 and 5.5% in 2018 and 2019 supported by resilient domestic demand and improvement in private investment IMF: In 2017, growth is expected to rise modestly to 5.1%, led by a gradual pickup
Slide 3: Indonesian Cement Industry 2017 Landscape
Indonesian Cement Industry 2017 Landscape INDOCEMENT Lafarge Indonesia 1.6 mio ton Semen Bosowa 0.2 mio ton (g) 4.0 mio ton 2.5 mio ton (g) Indocement Anhui Conch 24.2 mio ton 2.6 mio ton Semen Indonesia 10.3 mio ton Semen Indonesia 0.9 mio ton (g) 7.8 mio ton Semen Baturaja Semen Kupang/Merah Putih
Slide 4: Demand/Supply Outlook: Oversupply Market
Demand/Supply Outlook: Oversupply Market INDOCEMENT in mio Tons CAGR Supply 2001-2015: 3.6% CAGR Supply 2016-2025: 4.6% CAGR Demand 2001-2015: 6.5% CAGR Demand 2016-2025: 6.9% Year Over Supply 91.9% 92.4% 2015 15.4 88.7% 85.4% 132.3 134.3 134.3 2016 27.9 84.8% 84.1% 126.8 2017 37.1 78.9% 80.2% 80.1%
Slide 5: Cement demand shows down trend 4 years in a row
Cement demand shows down trend 4 years in a row as multiplier INDOCEMENT effect of infrastructure spending has not been realized Source: Indonesian Cement Association, BPS Statistic 59.9 62.0 62.0 17.7% 55.0 58.0 15.2% 48.0 14.5% 38.1 38.4 40.8 31.5 31.9 34.2 27.5 30.2 9.7% 25.7 27.1 7.0% 11.4% 5.2%
Slide 6: Domestic Consumption Growth & Market Share per region
Domestic Consumption Growth & Market Share per region YTD March 2017 INDOCEMENT Source: Indonesia Cement Association Market Growth: >15% For Q1 2017, Indocement’s home market, Western Java recorded negative growth of -3.2% YoY. Java indicated recovery with overall growth of 3.9% 10-15% supported by
Slide 7: Java is still key market area in delivering strong results
Java is still key market area in delivering strong results INDOCEMENT Geographic composition of Sales 76% 31% 30% 75% 30% 29% 74% 28% 29% 28% 28% 73% 28% 27% 27% 72% 27% 27% 26% 71% 26% 70% 26% 25% 69% 25% 24% 68% 23% 73% 74% 75% 72% 73% 70% 74% 71% 72% 72% 73% 67% 22% Q1 '15 Q2 '15 Q3 '15 Q4'15 FY
Slide 8: The importance of bulk sales continues
The importance of bulk sales continues INDOCEMENT In thousand tons Bag/Bulk sales composition Jan - Dec 20,000 18,000 16,000 3,517 20% 3,931 21% 4,109 24% 3,860 14,000 24% 12,000 • Stronger focus on increasing bulk sales 10,000 • High bulk volume in Jakarta 8,000 • Indocement benefits from 14,459 14
Slide 9: Continuous focus on cost control with disciplined spending
Continuous focus on cost control with disciplined INDOCEMENT spending on promotional activities Composition of Manufacturing Cost as % Fixed Cost Control – bio IDR Trend 600 542 -6% 524 +7% 490 50% 45.4% 500 -10% 40% 400 30% 300 22.8% 20.5% 20% 42.6% 200 152 141 +8% 11.3% 130 24.2% 24.1% +0% 10% -15
Slide 10: Continue in Cost Leadership to maintain a decent margin in Q1 2017
Continue in Cost Leadership to maintain a decent margin INDOCEMENT in Q1 2017 New market entrants leading to higher competition and pricing pressure but Indocement maintains better margin compared to peers INTP Gross margin development INTP EBITDA margin development 50.0% 40.0% 40.0% 35.0% 34.5% 30.
Slide 11: Financial Result
Financial Result INDOCEMENT Consolidated Statement of Comprehensive Income • Operating margin reduction from 27.5% to 14.8% contributed by lower revenues by -14.1% due to strong competition on weak demand situation which impact was reduced by cost efficiency in production (-0.8%) amid cost pull from
Slide 12: Balance Sheet
Balance Sheet INDOCEMENT Consolidated Statement of Financial Position • Trade receivables are declining following weak demand on start up year after reach its peak at end of year’s quarter. Inline with receivables sides, lower activities reduced the payable balance. • Increase in Non-Current Assets
Slide 13: Our P14 in Citeureup has already started
Our P14 in Citeureup has already started INDOCEMENT A new Tiga Roda cement plant, with annual installed production capacity of 4.4 million cement at Citeureup, Bogor - Indonesia. IDR ~6 Trillion investment. A production line that equipped with modern and energy efficient facility. Designed to utiliz
Slide 14: Capacity Expansion & Future Investment to participate in Industry Growth
Capacity Expansion & Future Investment to participate in INDOCEMENT Industry Growth Full Operation in 2017 with combined cycle operation of 1 unit of aero derivative gas turbine (ADGT) to supply 73 MW (including power supply from Steam Turbine to Citeureup factory); Investment cost: IDR 468.3 Bio
Slide 15: Ready Mix Concrete and Aggregates Expansion
Ready Mix Concrete and Aggregates Expansion INDOCEMENT • 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 r
Slide 16: Cement Market Outlook for 2017
CEMENT MARKET Outlook for 2017 INDOCEMENT Market Condition • National cement consumption growth is predicted to be better around 3 to 5% in 2017 (versus flat in 2016) • Consumption in 2017 will increase in line with higher Government’s projects and some commercial and residential projects after Tax
Slide 17: Indocement's Action Plan in 2017
Indocement’s Action Plan in 2017 INDOCEMENT • Run P14 production (10,000 tpd) in full-swing by Q1/2017 will help to reduce further production cost by about USD 7-8 per ton • Optimize product mix from 13 line of cement production will bring competitive advantages of Indocement to introduce different
Slide 18: New Brand of Rajawali as fighting brand
New Brand of “RAJAWALI” as “fighting brand” INDOCEMENT • The public need for cement at affordable prices is increasing signed by new entry cement players growth. • Indocement realizes the importance of building every home in Indonesia with quality products. • Semen Rajawali present is to answer the
Slide 19: End User Program
End User Program INDOCEMENT Slide 19 - May 2017 source: www.sementigaroda.com Q1 Results - Indocement
Slide 20: Thank You
41 Years Building Indonesia KOKOH INDOCEMENT Slide 20 - May 2017 THANK YOU Q1 Results - Indocement
Slide 21: Important Notice
Important Notice INDOCEMENT Disclaimer This presentation contains general information which provided without any representations or warranties, express or implied and does not constitute or form part of, and is not made in connection with, any offer for sale or subscription of or solicitation, recom
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