PT Indocement Tunggal Prakarsa Tbk · IDX:INTP
PT Indocement Tunggal Prakarsa Tbk — Q3 2014 Earnings Presentation
26 slides from PT Indocement Tunggal Prakarsa Tbk's earnings presentation, November 2014
Slide 1: Jakarta, November 2014
Jakarta, November 2014 1
Slide 2: Agenda
AGENDA Sekilas Indocement General Information about Indocement Kondisi Pasar Current Domestic Semen Market Domestik Condition Saat ini Laporan Keuangan Financial Update Q32010 2014 Rencana Strategi Investment Plan Strategy Investasi Tinjauan2014 Outlook 2011 Q&A 2
Slide 3: Agenda
AGENDA Sekilas Indocement General Information about Indocement Current Domestic Market Condition Financial Update Q3 2014 Investment Plan Strategy Outlook 2014 Q&A 3
Slide 4: Indocement History
INDOCEMENT HISTORY PT Indocement Tunggal Prakarsa (“Indocement”) incorporated 1985 following merger of 6 companies owning 8 cement plants 1989 Public listed of Indocement in the Indonesia Stock Exchange Acquired the 9th plant in Palimanan 1991 Completed Surabaya cement terminal Started ready-mix con
Slide 5: Indocement Today
INDOCEMENT TODAY Leading Indonesian producer of quality & specialty cement products • 2nd largest cement manufacturer in Indonesia, listed on the Indonesia Stock Exchange • Integrated cement operations with a total current production capacity of 20.5mn tons • Diversified product range including • PC
Slide 6: Board of Commissioners & Board of Directors
BOARD OF COMMISSIONERS & BOARD OF DIRECTORS Board of Commissioners Dr. Albert Scheuer Dr. Lorenz Naeger Dr. Bernd Scheifele Daniel Gauthier President Commissioner Commissioner Commissioner Commissioner Tedy Djuhar I Nyoman Tjager M. Jusuf Hamka VP Commissioner, VP Commissioner, Independent Independe
Slide 7: Indocement's Business Divisions
INDOCEMENT’S BUSINESS DIVISIONS Cement is the core division comprising over 90% of sales INDOCEMENT Cement RMC AGGREGATES Others Citeureup Factory PT Dian Abadi Perkasa – - 9 plants PT Pionirbeton Industri 99.9% (Cement Trading) Palimanan Factory PT Mandiri Sentra and PT Indomix PT Multi Bangun Gala
Slide 8: Indocement Factory and Terminal Locations
INDOCEMENT FACTORY AND TERMINAL LOCATIONS Samarinda Terminal Tarjun Factory 1 plant with production capacity of 2.6mt Tj. Priok Terminal Banyuwangi Terminal Citeureup Factory 9 plants with Surabaya Terminal production capacity Palimanan Factory Lombok Terminal Denpasar of 13.8mt 2 plants with produc
Slide 9: Agenda
AGENDA General Information about Indocement Current Domestic Market Condition Financial Update Q3 2014 Investment Plan Strategy Outlook 2014 Q&A 9
Slide 10: Indonesian Cement Market Growth
INDONESIAN CEMENT MARKET GROWTH 73.0 Million tons 68.0 63.0 59.3 54.3 53.0 +17.7% 47.1 47.1 46.1 46.2 48.0 +14.5% 44.9 45.5 +9.7% +11.4% +6.2% +5.5% +4.5% +6.0% +7.0% +1.8% +4.2% +1.5% +0.9% 31.5 31.9 34.2 38.1 38.4 40.8 48.0 55.0 58.0 64.3 27.5 30.2 60.6 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 11: Current Trading – September 2014
CURRENT TRADING – September 2014 Indocement sales volumes comparison Market Share 31.7% 32.0% 31.5% 30.6% 30.9% 30.9% 30.4% 30.5% 30.2% 30.2% 29.7% 17.9 mt 18.0 mt 15.4 mt 12.3 mt 11.8 mt 12.8 mt 12.9 mt 13.2 mt 10.7 mt 9.6 mt10.0 mt 3.2 mt 3.8 mt 2.5 mt 2.3 mt 1.6 mt 1.0 mt 0.6 mt 0.1 mt 0.22 mt 0.
Slide 12: Market Share per Region YTD September 2014
Market Share per Region YTD September 2014 12
Slide 13: And There Is Still More Potential
AND THERE IS STILL MORE POTENTIAL Cement consumption per capita in 2013 2,000 1,800 1,774 kg/capita 1,600 1,400 1,200 1,116 1,000 800 600 554 493 400 229 207 210 200 143 0 CH* SG VN TH ID PH IN ID Source: Deutsche Bank 2005 Indonesia cement consumption per capita increased by 60% from 143 kg/capit
Slide 14: Sales Volumes
Sales Volumes Domestic Sales Volume In thousand tons Export Sales Volume In thousand tons 19,000 0.5% 2012 2013 2014 240 17,000 2012 2013 2014 220 15,000 200 -0.2% 2.1% 180 13,000 160 140 11,000 2.7% 120 0.5% 9,000 100 80 7,000 60 1.8% 40 5,000 2.1% 20 39 10 17 57 77 42 78 183 121 95 217 4,132 4,219
Slide 15: Agenda
AGENDA General Information about Indocement Current Domestic Market Condition Financial Update 2010 Q3 2014 Investment Plan Strategy Outlook 2014 Q&A 15
Slide 16: Consolidated Income Statement
Consolidated Income Statement Q3 2014 Q3 2013 Change Description IDR Bio IDR Bio % Total Sales Volume (thousand tons) 13,318 13,104 1.6% In Billion IDR Net Revenues 14,166.9 13,348.0 6.1% Cost of Revenues (7,819.2) (7,098.6) 10.2% GROSS PROFIT 6,347.6 6,249.5 1.6% % of Net Revenues 44.8% 46.8% Opera
Slide 17: Manufacturing Costs
Manufacturing Costs Dependent on following macroeconomic drivers: 1. Exchange rate Development of IDR vs. USD Approximately 50-60% of costs related Manufacturing Cost at Indocement to foreign currency such as: Fuels, Materials and Manufacturing Fuels Overheads 20% Electricity 27% 2. Coal price I
Slide 18: Operational efficiency improvements
Operational efficiency improvements 1 New vertical raw mill Capacity: 1.9m tons In operation since May Lower energy consumption compared to other mills Lower clinker ratio possible due to distinct technical specifications of the VRM Capable to grind the slag in significant amount 2 Slag co
Slide 19: Agenda
AGENDA General Information about Indocement Current Domestic Market Condition Financial Update Q3 2014 Investment Plan Strategy Outlook 2014 Q&A 19
Slide 20: Capacity Expansion to Participate in Industry Growth
CAPACITY EXPANSION TO PARTICIPATE IN INDUSTRY GROWTH Projects New cement mill with capacity of 1.9 MT in Citeureup which is in operation in Q2 2014 1 brownfield project with capacity of 4.4 million tons with an overall investment value of IDR 5.5 to 6.5 trillion 2 greenfield projects with capa
Slide 21: Potential Capacity Increase
Potential Capacity Increase North Sumatra 2018: Greenfield 2.5-3m tons Investment: 200-250 USD/ton Tarjun 2014: 2.6m tons Citeureup Cirebon 2014: 13.8m tons 2015: Brownfield 4.4m tons 2014: 4.1m tons Central Java Investment: USD 150/ton 2018: Greenfield 2.5-3m tons Investment: 200-250 USD/ton 21
Slide 22: Ready-Mix Concrete Expansion
READY-MIX CONCRETE EXPANSION • Indocement keeps strengthening its ready-mix concrete in order to meet the increase of demand in ready mix concrete for the construction of residential and high rise building in Jakarta and West Java area by heavily investing in new batching plants and mixer trucks. Th
Slide 23: Agenda
AGENDA General Information about Indocement Current Domestic Market Condition Financial Update Q3 2014 Investment Plan Strategy Outlook 2014 2011 Q&A 23
Slide 24: Outlook for Year-end 2014
Outlook for Year-end 2014 Market Environment • National market 2014 still estimated to grow about 4~5% • Infrastructure projects expected to pick-up with the election of the new government • Changing market environment as new competitors are entering the market • Hike in electricity costs will hampe
Slide 25: Agenda
AGENDA General Information about Indocement Current Domestic Market Condition Financial Update Q3 2014 Investment Plan Strategy Outlook 2014 2011 Q&A 25
Slide 26: Thank you
Thank you INDOCEMENT 26 HEIDELBERGCE MENT Group
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