PT Indocement Tunggal Prakarsa Tbk · IDX:INTP
PT Indocement Tunggal Prakarsa Tbk — Q3 2019 Earnings Presentation
28 slides from PT Indocement Tunggal Prakarsa Tbk's earnings presentation, Nov 11, 2019
Slide 1: PT Indocement Tunggal Prakarsa Tbk YTD Q3 2019 Financial Results
INDOCEMENT PT Indocement Tunggal Prakarsa Tbk YTD Q3 2019 Financial Results Photo: Cirebon Quarry – Mountains Kromong https://www.quarrylifeaward.es/quarries/indonesia/cirebon-quarry
Slide 2: Agenda
Agenda Current Financial Indocement Domestic Investment Outlook Update YTD Fact Sheet Market Strategy 2019 Q3 2019 Condition Slide 2 - November 11, 2019 PT Indocement Tunggal Prakarsa Tbk – YTD Q3 2019 Financial Results
Slide 3: Indonesia at a Glance
Indonesia at a Glance Strong Footprint in West Java as Key Advantage for Indocement Cement Consumption YTD Q3 2019 Others 8% Sulawesi 9% Balikpapan - Samarinda Manado - Bitung Kalimantan 6% Sumatera Java 21% Medan – Binjai 56% Pekanbaru - Dumai Palembang - Inderalaya Makassar Airport Toll Toll Road
Slide 4: Indocement Overview YTD Q3 2019
Indocement Overview YTD Q3 2019 Strong position with further upside potential Source of growth is now back to our home market – Western Java, +2.0% YoY growth compared to last year. Net Revenues increased by +5.3% to IDR 11.3 trillion due to higher average selling price (domestic) by +8.0% YoY c
Slide 5: Agenda
Agenda Current Financial Indocement Domestic Investment Outlook Update YTD Fact Sheet Market Strategy 2019 Q3 2019 Condition Slide 5 - November 11, 2019 PT Indocement Tunggal Prakarsa Tbk – YTD Q3 2019 Financial Results
Slide 6: Indonesia Cement Industry 2019 Landscape
Indonesia Cement Industry 2019 Landscape Sumatera: 17.7 Kalimantan: 5.8 Sulawesi: 14.1 Indonesia: 114.8 SI: 10.4 (I) SI: 7.4 (I) INTP: 2.8 (I) Integrated: 102.2 SBI: 1.8 (I) BSM: 4.4 (I) CCI: 3.0 (I) Grinding Mill: 12.6 SMBR: 3.9 (I) CCI: 2.3 (I) BSM: 1.2 (GM) MP: 0.4 (I) Wes
Slide 7: Indonesia Cement Industry 2019 Capacity Share
Indonesia Cement Industry 2019 Capacity Share Capacity in million Tons per Annum (Capacity Share) 1. Semen Indonesia + SBI: 51.7 (45.1%) 75.9 94.3 108.0 111.5 114.8 (SBI: ex. LHI) 2. Indocement: 25.5 (22.2%) 5 16 21 22 6 25 3. Conch: 11.2 (9.7%) 10 12 12 12 4. Bosowa: 7.4 (6.4%) 5. Cemindo Gemilang
Slide 8: Regional Shift of Demand
Regional Shift of Demand: West Java remains strong with increasing demand at East side of Indonesia Market shares based on cement domestic sales (YTD September 2018, YTD September 2019) Indonesia: 57% , -1.5% Data in Box: Utilization Rate and Growth Rates YoY per area for YTD September 2019 Kalimant
Slide 9: Total September 2019 Volume is -1.5% YoY
Total September 2019 Volume is -1.5% YoY However volume in September started to show recovery Q1 Q2 Q3 Q4 Indonesia monthly sales volume (kt) 6,819 7,188 6,419 6,533 6,777 6,471 6,101 5,696 4,884 5,658 6,394 6,392 5,205 5,337 5,624 4,821 5,166 5,195 4,816 3,739 National 3,334 Election 2019 2018 +31%
Slide 10: Demand shifts back to Java towards end of year
Demand shifts back to Java towards end of year Java vs. Outside Java 80,000 In thousand tons 83% - Bag Java 70,000 86% - Bag 17% - Bulk Outside Java 14% - Bulk 60,000 83% - Bag 30,531 +6% 17% - Bulk 50,000 28,885 +2% 27,544 28,194 +2% 40,000 21,785 21,438 -2% 30,000 20,000 37,464 +12% 39,010 +4% 34,
Slide 11: Stronger demand for Bulk
Stronger demand for Bulk Bag vs. Bulk Volume 80,000 72% - Java In thousand tons 28% - Outside Java Bag 73% - Java 70,000 27% - Outside Java Bulk 60,000 18,769 +11% 71% - Java 16,938 +14% 14,501 14,794 +2% 29% - Outside Java 50,000 13,169 13,104 -1% 40,000 30,000 47,494 49,412 +5% 50,772 +3% 46,845 -
Slide 12: Agenda
Agenda Current Financial Indocement Domestic Investment Outlook Update YTD Fact Sheet Market Strategy 2019 Q3 2019 Condition Slide 12 - November 11, 2019 PT Indocement Tunggal Prakarsa Tbk – YTD Q3 2019 Financial Results
Slide 13: Financial Highlights
Financial Highlights Financial Attributes Net Revenues increased by +5.3% to IDR 11.3 trillion vs. IDR 10.8 trillion Gross Profit improved by +27.8% to IDR 3.7 trillion vs. IDR 2.9 trillion Cost of Revenues of YTD Q3 2019 decreased by -2.8% due to lower sales volume of -1.9% coupled with lower
Slide 14: Our home market West Java continues strong on Bulk
Our home market West Java continues strong on Bulk Bag/Bulk Sales Composition 20,000 In thousand tons Bag 18,000 Bulk 16,000 4,658 +11% 4,109 -6% 4,203 +9% 14,000 +5% 3,860 12,000 3,286 3,381 +3% 10,000 8,000 -11% -3% +4% 12,943 12,518 12,891 +3% 13,415 6,000 74% -4% 76% 76% 75% 9,800 9,448 4,000 2,
Slide 15: Challenging Years, but The Worst is Left Behind
Challenging Years, but The Worst is Left Behind More Stable Pricing in 2019 Sep-18 to Sep-19 increase of +10% Source: average of Tiga Roda selling price surveyed across retailers in Java Our dual-brand strategy has successfully stopped a falling trend in pricing! Slide 15 - November 11, 2019 PT Indo
Slide 16: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income YTD Q3 2019 YTD Q3 2018 Variance Description EBITDA margin expansion from IDR Bio IDR Bio IDR Bio % Total Sales Volume (thousand tons) 13,503 13,759 -256 -1.9% 13.9% to 18.4% attributed to: Domestic Sales Volume (thousand tons) 13,400 13,659 -259 -1.9%
Slide 17: Strategic cost allocation to capitalize on market growth
Strategic cost allocation to capitalize on market growth Composition of Manufacturing Cost Operating Expenses 9M17 9M18 9M19 Selling Expense G&A Expense In Bio Trend 1,968 1,868 1,685 44.7% +10.9% +5.4% 23.7% 21.2% 47.7% 486 514 524 10.4% 22.7% 19.9% 23.3% 11.1% 9.7% 45.1% 20.5% +5.7% +2.0% Raw Mate
Slide 18: Continue in Cost Leadership maintaining decent margin
Continue in Cost Leadership maintaining decent margin Pricing discipline point to sustain recovery period while continuing efficiency effort on fixed cost Gross Margin Development EBITDA Margin Development 43.2% 40.3% 41.4% 40.0% 33.9% 35.0% 29.6% 29.6% 27.9% 31.2% 30.1% 18.9% 20.9% 14.6% 34.5% 34.0
Slide 19: Strategy under current tight competition
Strategy under current tight competition Vertical Integration in Ready-Mix Concrete & Aggregates RMC Sales Volume – ‘000 m3 AGG Sales Volume – ‘000 t 5,000 000m3 3,000 000 tons 2,849 4,430 2,473 3,947 2,500 2,383 2,370 4,000 2,284 2,173 3,377 2,988 2,000 3,000 1,656 2,372 2,400 1,500 1,157 2,000 1,7
Slide 20: Major ReadyMix Projects
Major ReadyMix Projects o Major projects from Commercial/Private sector: • Pakubuwono Menteng • Bintaro Xchange Mall • Indonesia One • Kingland Avenue • The Stature – Kebon Sirih Desari - Toll Road Bocimi - Toll Road Jakarta Cikampek Elevated Tanjung Jati - Power Plant - Toll Road Batang - Power Pla
Slide 21: Persistence of strong Balance Sheet position
Persistence of strong Balance Sheet position Sep 30, 2019 Dec 31, 2018 Variance Description IDR Bio IDR Bio Bio IDR % Current Assets 11,518.4 12,315.8 -797.4 -6.5% Non-Current Assets 14,860.5 15,472.8 -612.3 -4.0% Current Liabilities 3,320.5 3,925.6 -605.1 -15.4% Non-Current Liabilities 686.0 641.3
Slide 22: Agenda
Agenda Current Financial Indocement Domestic Investment Outlook Update YTD Fact Sheet Market Strategy 2019 Q3 2019 Condition Slide 22 - November 11, 2019 PT Indocement Tunggal Prakarsa Tbk – YTD Q3 2019 Financial Results
Slide 23: Indocement Vision 2020
Indocement Vision 2020 To be the prominent cement producer in Indonesia 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 24: Controlling Dust Emission
Controlling Dust Emission Replace Kiln Electrostatic Precipitators (EP) to Bag House to reduce dust emission Target of dust emission by installing bag house <10 mg/Nm³ (Government regulation <65-75 mg/Nm³) Total capex spending 2017 – 2019 for Bag House: IDR 280.2 bio Filter Bag Installation
Slide 25: Cost Efficiency Measure
Cost Efficiency Measure Increasing Usage of Alternative Fuel 100% 2.3 98% 3.4 3.2 5.8 96% 7.7 94% 8% LCV 92% 97.7 90% 96.6 96.8 67% LCV 94.2 88% 92.3 86% 84% 2015 2016 2017 2018 YTD Q3 2019 Fossil Fuels Alternative Fuels Continuous effort on reducing coal as primary source of energy Slide 25 - Novem
Slide 26: Agenda
Agenda Current Financial Indocement Domestic Investment Outlook Update YTD Fact Sheet Market Strategy 2019 Q3 2019 Condition Slide 26 - November 11, 2019 PT Indocement Tunggal Prakarsa Tbk – YTD Q3 2019 Financial Results
Slide 27: Outlook of Indonesian Cement Market
Outlook of Indonesian Cement Market Foreseen positive growth in Q4 2019 due to stable political situation after inauguration of President and Vice President combined with dry season and most projects to maximize their 2019 budget spending this last quarter. However it is estimated that full year gro
Slide 28: THANK YOU!
THANK YOU! THANK YOU www.tokotigaroda.com Better shelter for better life… The information contained in this material presentation strictly confidential and legally privileged. It is intended to be received only by the named addressee. If you are not the named addressee, any use, disclosure, copying
PT Indocement Tunggal Prakarsa — Q3 2019 Earnings Presentation on 6ix