PT Indocement Tunggal Prakarsa Tbk · IDX:INTP
PT Indocement Tunggal Prakarsa Tbk — H1 2018 Earnings Presentation
29 slides from PT Indocement Tunggal Prakarsa Tbk's earnings presentation, Aug 1, 2018
Slide 1: PT Indocement Tunggal Prakarsa Tbk H1 2018 Results
INDOCEMENT PT Indocement Tunggal Prakarsa Tbk H1 2018 Results
Slide 2: Agenda
Agenda INDOCEMENT Indocement : a well positioned player Market & Financial Update Vision 2020 – Strategies & Outlook Final Message Slide 2 - 16 Aug 2018 H1 2018 Results - Indocement
Slide 3: Indocement: a well positioned player
Indocement: a well positioned player INDOCEMENT Favorable • Presence in strongly growing markets West and Central Java regional exposure • Strong RMC position in Jakarta with pull-through on CEM Innovative • Innovative ways to maintain competitive cash cost, while still ways to maintaining high prod
Slide 4: Strong footprint in West Java as a key advantage
Strong footprint in West Java as a key advantage INDOCEMENT Integrated CEM plant AGG plant Country capital ANDAMAN SEA CEM terminal RMC plant BRUNEI MALAYSIA Asset base 25 mt CEM capacity 2.8 mt AGG capacity 43 RMC plants Jakarta INDIAN OCEAN West Java is one of the fastest growing part of the count
Slide 5: Strategic location of plants & terminals
Strategic location of plants & terminals INDOCEMENT 13 CEM 8 CEM 2 AGG 39 RMC 18 172 plants terminals plants plants distributors warehouses Market position Trends & potential Strategy & focus 50% market share in West Huge infra projects in West Defending market share in Java and 40% in Jakarta
Slide 6: Brand is a very important marketing tool in Indonesia
Brand is a very important marketing tool in Indonesia INDOCEMENT Our premium Perception Award brand • “Tiga Roda” brand is perceived to have best quality & service in the country. • “Top Brand” since eleven years. • In 2017, we won in the three categories: cement, white cement and mortars. BUILDING
Slide 7: Agenda
Agenda INDOCEMENT Indocement : a well positioned player Market & Financial Update Vision 2020 – Strategies & Outlook Final Message Slide 7 - 16 Aug 2018 H1 2018 Results - Indocement
Slide 8: New LTV Relaxation Regulation to Boost Property Sector
New LTV Relaxation Regulation to Boost Property Sector INDOCEMENT 40% No LTV 30% 1 20% 10% 2 Jokowi step into Office 0% 5 4 3 3. June 15 4. August 16 5. August 18 -10% LTV for LTV for LTV for 1. March 2012 2. September 2013 • 1st House at 80% • 1st House at 85% • 1st House at 100% LTV for 1st House
Slide 9: Indonesia – Favorable macroeconomic environment
Indonesia – Favorable macroeconomic environment INDOCEMENT Strong population Key: growing middle Upward trend in growth class urbanization +32 million +107 million 62.8% 53.3% 264 296 222 +9.5% 115 2017 2030 2017 2030 2015 2030 One of the fastest By 2050 almost 75% of growing countries Middle class
Slide 10: Long-term potential of Indonesia is clearly visible
Long-term potential of Indonesia is clearly visible INDOCEMENT Cement consumption tons per capita in kg Essroc adds 1.7mt 1,648 1,000 Average 763 excluding 617 China: 458 399 462 262 248 244 163 China South Malaysia Vietnam Thailand Australia Indonesia Phillippines India Pakistan Korea Significant h
Slide 11: Recent years were challenging but the worst is left behind
Recent years were challenging but the worst is left behind INDOCEMENT New entrants adopted low-pricing policies to gain market share which put pressure on pricing in the recent years. Price Development Our dual-brand strategy has successfully stopped a falling trend in pricing. Slide 11 - 16 Aug 201
Slide 12: Regional Shift of Demand
Regional Shift of Demand: INDOCEMENT Better Growth Outlook in Central Java and Sumatera Market shares based on cement domestic sales (Q2 2017, Q2 2018) Indonesia: Data in Box: Utilization Rate and Growth Rates YoY per area for Q2 2018 65% , +3.6% Kalimantan: 29.0Mt 30.0Mt 74% , +8.4% Sulawesi: 15.0
Slide 13: Solid footing to capitalize on demand recovery in key markets
Solid footing to capitalize on demand recovery in key markets INDOCEMENT Near bottom: <10% vol. growth rate from lowest point in ’14 – ‘18 Recovery: 10% - 30% vol. growth rate from lowest point in ’14 – ‘18 Strong Recovery: >30% vol. growth rate from lowest point in ’14 – ‘18 Indonesia • C. Java • J
Slide 14: Indocement's Strategies under Current Tight Competition
Indocement’s Strategies under Current Tight Competition: INDOCEMENT More bulk sales focus - as Jakarta & West Java Projects started Bag/Bulk sales composition • High bulk volume in Jakarta • Indocement benefits from proximity 20,000 to Jakarta & West Java Projects In thousand tons 18,000 16,000 3,51
Slide 15: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income INDOCEMENT • EBITDA margin reduction from 22.0% to 13.5% contributed by a. Lower sales volume during EID holiday due to truck ban that causes effective day to be 1 week lower than last year 1 b. higher cost of production amidst soaring coal prices, c. h
Slide 16: Vertical Integration in Ready-Mix Concrete & Aggregates
Indocement’s Strategies under Current Tight Competition: INDOCEMENT Vertical Integration in Ready-Mix Concrete & Aggregates Strengthening Ready-Mix Concrete business particularly high-grade quality in order to meet the increase demand of infrastructure development in Indonesia. 5,000 000m3 RMC Sales
Slide 17: Impact of truck ban and road closure to cement sales
Impact of truck ban and road closure to cement sales INDOCEMENT particularly severe in Western Java region • Industry sales volume during Ramadhan and Lebaran in Western Java has fared worse compared to nationwide sales volume during same time period in the past four years due to truck ban and road
Slide 18: Balance Sheet
Balance Sheet INDOCEMENT • Cash and cash equivalents at IDR 5.5 trn. • Capital expenditures for H1 2018 was IDR 282.3 bio. • Dividend Payment history: in Bio IDR 2012 2013 2014 2015 2016 2017 EBITDA 6,650 6,874 6,853 6,011 4,649 3,065 Net Income 4,763 5,218 5,154 4,259 3,800 1,838 Capex 1,063 2,200
Slide 19: Agenda
Agenda INDOCEMENT Indocement : a well positioned player Market & Financial Update Vision 2020 – Strategies & Outlook Final Message Slide 19 - 16 Aug 2018 H1 2018 Results - Indocement
Slide 20: Vision 2020 – To be the prominent cement producer in Indonesia
Vision 2020 – To be the prominent cement producer in Indonesia INDOCEMENT Highest operating margin in the industry Turn around in selling price Cost leadership Highest customer satisfaction & increase market share “Sales is a Science” program to increase our sales and create customer value
Slide 21: Clear drivers of future growth
Clear drivers of future growth INDOCEMENT Strong volume momentum and outlook Unique market position of Growth Improving supply – demand Indocement drivers dynamics Pricing stabilized and improving Slide 21 - 16 Aug 2018 H1 2018 Results - Indocement
Slide 22: Potential market consolidation as an additional upside
Potential market consolidation as an additional upside INDOCEMENT Newcomers operate Consolidation at cash losses seems to be imminent Unfavorable cost structure due lower Newcomers actively look for capacity and inferior equipment buyers for their assets Interest to be paid on debt-financed Consolid
Slide 23: Lampung terminal construction
INDOCEMENT 50 % ( Civil & Mechanical) Located in Katibung, South Lampung Coverage area : Lampung 3 steel silos cement @ 4,000 ton (total cap. 12,000 ton) 1 Packers 180 ton/hour 1 Line of bulk loading system 1 Truck scale cap. 100 ton 1 Warehouse 1,000 M2 Area 4.2 Ha 1 Jetty Port
Slide 24: Karawang terminal construction
INDOCEMENT Located in Puspanegara village, Karawang – West Java Building Permit process 60% (Civil & Mechanical) Coverage area : Karawang & vicinity 2 steel silos cement @ 500 ton (total cap. 1,000 ton) 1 Line of bulk loading system 1 Truck scale cap. 80 ton Area 500 M2 Commissioning T
Slide 25: Slag Cement Concrete fc' – At Lampung Jetty
Slag Cement Concrete fc’ 35 – At Lampung Jetty INDOCEMENT Mix Design Time 13:30 14:30 15:30 Compressive Strength (MPa) Development Minutes 0’ 30’ 60’ Slag Cement 50 28 539 kg / m³ Compressive Strength (MPa) General Type Slump (cm) 16 15 15 40 Temperature (°C) 30 30 32 Silica Fume 20 kg / m³ Initial
Slide 26: Outlook of Indonesian Cement Market
Outlook of Indonesian Cement Market INDOCEMENT National cement consumption growth started to turn positive and grew by 7.6% in 2017 (versus negative growth of -0.6% in 2016) and expected to grow by 7-8% in 2018 Consumption in 2018 will still be driven by infrastructure projects and some of commercia
Slide 27: Agenda
Agenda INDOCEMENT Indocement : a well positioned player Market & Financial Update Vision 2020 – Strategies & Outlook Final Message Slide 27 - 16 Aug 2018 H1 2018 Results - Indocement
Slide 28: Indocement: a well positioned player
Indocement: a well positioned player INDOCEMENT Favorable • Presence in strongly growing markets West and Central Java regional exposure • Strong RMC position in Jakarta with pull-through on CEM Innovative • Innovative ways to maintain competitive cash cost, while still ways to maintaining high prod
Slide 29: 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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