Pt Indocement Tunggal Prakarsa Tbk · IDX:INTP
Pt Indocement Tunggal Prakarsa Tbk — Q3 2020 Earnings Presentation
38 slides from Pt Indocement Tunggal Prakarsa Tbk's earnings presentation, Nov 10, 2020
Slide 1: Continuous Improvement: Leaner and Greener
mit mid mtn ay Continuous Improvement: Leaner and Greener
Slide 2: Agenda
AGENDA Indonesia Cement Industry Financial Update YTD Q3 2020 Investment Strategy Cement Market Outlook HR, Good Works & Awards Q&A Slide 2 - 10 November 2020 Public Expose - Indocement
Slide 3: Indonesia Cement Industry at a Glance
I N D O N E S I A C E M E N T I N D U S T R Y AT G L A N C E Strong Footprint in West Java as Key Advantage for Indocement National Cement Consumption 56.4% 54.7% 9M2019 9M2020 Capital City : Jakarta 20.5% 21.7% Population : ~ 271 Million 6.4% 6.3% 8.5% 8.3% 8.3% 9.1% Indonesia Density : 149/km2 Fac
Slide 4: Indonesia Cement Landscape 2020
INDONESIA CEMENT LANDSCAPE 2020 Sumatera: 16.9 Kalimantan: 6.1 Sulawesi: 14.1 Indonesia: 116.4 SI: 9.4 (I+GM) INTP: 2.8 (I) SBI: 1.8 (I) CCI: 3.0 (I) SI: 7.4 (I) Integrated: 101.1 SMBR: 3.9 (I+GM) SEM: 0.3 (GM) BSM: 4.4 (I) Grinding Mill: 15.3 BSM: 1.2 (GM) CCI: 2.3 (I) MP:
Slide 5: Indonesia Cement Capacity Share
I N D O N E S I A C E M E N T C A PA C I T Y S H A R E C a p a c i t y i n M i l l i o n To n s p e r A n n u m 1. Semen Indonesia + SBI (Ex Holcim): 44% 76 94 107 111 114 116 2. Indocement: 21% 3. Conch: 10% 76 76 4. Bosowa: 6% 68 74 76 64 5. Cemindo Gemilang (MP): 5% 6. Semen Baturaja: 3% 12 12 7.
Slide 6: Cement Market Evolution
CEMENT MARKET EVOLUTION 97.9% Economy 95.1% Indocement LHI Pandemic 93.2% 91.9% 92.9% Crisis Acquisition by Acquisition Crisis 88.7% 123.8 125.3 125.3 HeidelbergCement 87.1% by SIG 120.5 122.4 84.6% 81.8% 116.4 81.7% 113.9 78.9% 80.2% 110.6 75.1% 107.1 71.2% 94.3 68.3% 65.7% 65.4% 63.6% 61.9% 62.9%
Slide 7: Indonesia Monthly Sales Volume
I N D O N E S I A M O N T H LY S A L E S V O L U M E 7,344 Covid started by mid 6,819 7,188 7,088 Mar-20 in Indonesia 6,533 6,777 6,423 6,471 6,526 5,696 6,416 6,176 5,671 6,408 6,101 5,624 5,337 5,869 - 9.4% 5,205 +29.3% 5,454 5,208 5,195 4,884 5,166 - 14.9% - 8.5% 4,816 4,863 YTD Sep20 - 7.4% 4,82
Slide 8: (Outside) Java and Bag/Bulk Market
( O U T S I D E ) JAVA a n d B A G / B U L K M A R K E T (volume in k ton) Java 82% - Bag 71% - Java 18% - Bulk Bag 29% - Outside Java Outside Java Bulk 44% 44% 27% 27% 44% 26% 18,769 18,897 46% 24% 16,938 30,531 30,863 84% - Bag 14,794 69% - Java 28,885 28,194 16% - Bulk 73% 73% 31% - Outside Java
Slide 9: Agenda
AGENDA Indonesia Cement Industry Financial Update YTD Q3 2020 Investment Strategy Cement Market Outlook HR, Good Works & Awards Q&A Slide 9 - 10 November 2020 Public Expose - Indocement
Slide 10: Financial Highlight
FINANCIAL HIGHLIGHT YTD Q3 2019 YTD Q3 2020 Resilient Financial Result Operational Result Decrease -9.7% Decrease -10.6% o Net Revenues % decreased more than sales volume due to blend-in effect of lower average price in 2020 13,503 11,347.9 12,197 10,149.6 o Cost of Revenues decreased by -12.5% due
Slide 11: Consolidated Statement of Comprehensive Income
C O N S O L I D AT E D S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E YTD Q3 2020 YTD Q3 2019 Variance Description IDR Bio IDR Bio IDR Bio % Total Sales Volume (thousand tons) 12,197 13,503 -1,307 -9.7% • Revenues decreased by -10.6% higher than sales Domestic Sales Volume (thousand tons)
Slide 12: Operating Efficiencies & Cost Discipline
O P E R AT I N G E F F I C I E N C I E S & C O S T D I S C I P L I N E YTD Q3 Composition of Manufacturing Cost YTD Q3 Operating Expenses (bio IDR) 2018 2019 2020 Selling Expense G&A Expense 48% 1,968 45% 1,868 1,834 42% +5.4% -6.8% 23% 24% 23% 24% 20% 21% 514 524 475 10% 10% 11% -9.2% +2.0% Raw Mat
Slide 13: Fixed Cost Monitoring to Improve Efficiency
FIXED COST MONITORING TO IMP ROVE EFFICIENCY Gross Margin Development EBITDA Margin Development 2018 2019 2020 2018 2019 2020 39% 40% 26% 35% 34% 23% 31% 32% 21% 21% 29% 30% 29% 20% 27% 19% 23% 16% 15% 14% 10% 8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 During challenging & uncertain time, the Company continues to f
Slide 14: Consolidated Balance Sheet
C O N S O L I D AT E D B A L A N C E S H E E T Sep 30, 2020 Dec 31, 2019 Variance Description IDR Bio IDR Bio Bio IDR % Current Assets 11,823.3 12,829.5 -1,006.2 -7.8% Non-Current Assets 14,514.3 14,878.3 -363.9 -2.4% Current Liabilities 3,209.3 3,873.5 -664.2 -17.1% Non-Current Liabilities 783.4 75
Slide 15: Agenda
AGENDA Indonesia Cement Industry Financial Update YTD Q3 2020 Investment Strategy Cement Market Outlook HR, Good Works & Awards Q&A Slide 15 - 10 November 2020 Public Expose - Indocement
Slide 16: The New Branded Feature of Tiga Roda Bag
T H E N E W B R A N D E D F E AT U R E O F T I G A R O D A B A G A logo representing Semen Tiga Roda with three circles, describing the three main components forming one strong best quality & consistent cement formula that has been perfected through 45 years of experience & mastery: 1. Best material
Slide 17: 3 Digital Pillars in Indocement
3 D I G I TA L P I L L A R S I N I N D O C E M E N T Key levers Key levers Key levers • Additional (service) revenues • More throughput • Leverage scale and global • New customer segments • Reduced energy cost footprint • Reduced logistics cost • Reduced maintenance cost • Fewer back-office resource
Slide 18: Digital Pillars: TR-Connect
3 D I G I TA L P I L L A R S I N I N D O C E M E N T TR – Connect SFA (Sales Force Automation) Go-Live by early 2019 starting in our Home Market • Used by all Java sales person including the Distributors’ sales person in 2020 • Plan to be used by all areas outside Java in 2021 • Purpose: for more ac
Slide 19: Digital Pillars: TR-Produce
3 D I G I TA L P I L L A R S I N I N D O C E M E N T TR – Produce Products enabling real-time insights, immediate remote support & advanced analytics optimizers Slide 19 - 10 November 2020 Public Expose - Indocement
Slide 20: TR-Produce: Improving Cost Base & Customer Service
T R– P ROD UC E: I M PROV ING CO ST B A SE & C USTO ME R SE RV I C E Example: Batch Control Center • Consolidating batching, transport, dispatch, call center & quality control in one central location • Increasing trucking fleet efficiency & on-time delivery through real-time coordination • Improving
Slide 21: Digital Pillars: TR-Service
3 D I G I TA L P I L L A R S I N I N D O C E M E N T TR – Service Building the next generation Shared Service Center (SSC) unlocking a step change in efficiency Slide 21 - 10 November 2020 Public Expose - Indocement
Slide 22: Indocement Sustainability Project for Reducing Dust Emission
I N D O C E M E N T S U S TA I N A B I L I T Y P R O J E C T for Reducing Dust Emission P9 Bag House • New regulation require continues emission monitoring and mandatory online reporting by end 2020 • Indocement received Green Label Indonesia GOLD Certification for PCC Cement Type at Citeureup & Cir
Slide 23: New Aggregates Quarry - Pamoyanan Project
N E W A G G R E G AT E S Q UA R R Y - PA M OYA N A N P R O J E C T close to Jakarta – Bogor – Cikampek area • Commercial production has started by October 2020 • Production target is 100k ton/month of Aggregates product for the first year • Annual production capacity of 2.5mio ton/year • Ready to su
Slide 24: New Instant Cement Product: Grey Mortar
N E W I N S TA N T C E M E N T P R O D U C T: G R E Y M O R TA R TIGA RODA Grey Mortar (Instant Cement Mix) is to be launched within near future Target Production Capacity: 180k ton/year Target Market: Jabodetabek & other West Java region Source of Raw Materials: Internal Sourcing from Citeure
Slide 25: Agenda
AGENDA Indonesia Cement Industry Financial Update YTD Q3 2020 Investment Strategy Cement Market Outlook HR, Good Works & Awards Q&A Slide 25 - 10 November 2020 Public Expose - Indocement
Slide 26: Cement Market Outlook
CEMENT MARKET OUTLOOK FY 2020 Demand growth is expected to be -9% to -10% (NB: YTD Sept 2020 growth: -9.0%). Some factors ! that potentially hinder the growth: start of rainy season, demonstration activities against UU CiptaKerja, Regional Election in December, and the shift of Lebaran holiday at th
Slide 27: Agenda
AGENDA Indonesia Cement Industry Financial Update YTD Q3 2020 Investment Strategy Cement Market Outlook HR, Good Works & Awards Q&A Slide 27 - 10 November 2020 Public Expose - Indocement
Slide 28: Indocement Safety Culture
INDOCEMENT SAFETY CULTURE No Fatality for the past 3 years Certain Programs Roll Out in 2020: • Management has positioned SAFETY & HEALTH as highest attention and commitment • Regular BOD safety walk and safety conversation • Quick action in Covid-19 measurements • Discipline in the execution of saf
Slide 29: Next Generation Is Coming!!!
NEXT GENERATION IS COMING!!! Top 10 University selected: ITB, UI, ITS, UGM, Atmajaya, Trisakti, Parahyangan, Padjajaran, Diponegoro, Brawijaya, Hasanudin Selection process: Total applicants : 5,896 Meet criteria : 775 Written test : 475 Interview test : 120 Presentation test : 75 Candidate selected
Slide 30: Indocement HiPo Development Program
INDOCEMENT HI PO DEVELOPMENT PROGRAM o An Executive Development Program to create the future leaders of Indocement. o Prasetya Mulya Business Institute as our strategic partner to develop and roll out the program. 1ST batch Roll out in Jan 16, 2020 Program Kick Off & Insights from CEO – Nov 2019 Sli
Slide 31: Indocement Good Works
INDOCEMENT GOOD WORKS We develop 29 “desa binaan” through “bilikom” Citeureup Plantsite Palimanan Plantsite Tarjun Plantsite Desa Gunung Putri Desa Walahar Desa Sungai Dua Desa Nambo Desa Palimanan Barat Desa Desa Tarjun Desa Citeureup Desa Cikeusal Desa Cantung Kiri Hilir Desa Gunungsari Desa Kedun
Slide 32: Indocement Good Works
INDOCEMENT GOOD WORKS THE MOVEMENT OF “INDOCEMENT PEDULI” The floods and landslides that hit the Greater Jakarta area in the new year of Jan 1, 2020, left a deep sorrow. Through “Indocement Peduli” movement, we collected donation from Management and Employees to help the victims at surrounding B
Slide 33: Indocement Good Works
INDOCEMENT GOOD WORKS THE MOVEMENT OF “INDOCEMENT GOES TO COMMUNITY” Board of Directors, Managers, Staff Management, Labor Union, Muspika and the villagers voluntary doing the good works for community Painting the Mosque “Rutilahu” Projects National Clean up day Slide 33 - 10 November 2020 Indocemen
Slide 34: HR - Goodworks - Awardings
HR - GOODWORKS - AWARDINGS AWARDINGS 8 January 15 January “PROPER Green Rating” for “ISO 45001:2018” for Cirebon Factory from Ministry of Indocement - a new standard Environment and Forestry of the to assist organizations to Republic of Indonesia reduce issues related to OSH, provide safe and health
Slide 35: HR - Goodworks - Awardings
HR - GOODWORKS - AWARDINGS AWARDINGS 9 July 23 July “Indonesia's Top 100 “Best CEO 2020” - Most Valuable Brands Building Material 2020’ for Indocement Category for Christian from SWA Magazine in Kartawijaya from The collaboration with Brand Iconomics Finance Indonesia 29 July 29 July Two “TOP CSR Aw
Slide 36: Agenda
AGENDA Indonesia Cement Industry Financial Update YTD Q3 2020 Investment Strategy Cement Market Outlook HR, Good Works & Awards Q&A Slide 36 - 10 November 2020 Public Expose - Indocement
Slide 37: Thank You
THAN K YOU Slide 37 - 10 November 2020 Public Expose - Indocement
Slide 38: Important Notice
Important Notice 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, recommendation,
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