PT Indocement Tunggal Prakarsa Tbk · IDX:INTP
PT Indocement Tunggal Prakarsa Tbk — Q4 2018 Earnings Presentation
46 slides from PT Indocement Tunggal Prakarsa Tbk's earnings presentation, March 2019
Slide 1: Q4 2018 Financial Results
INDOCEMENT PT Indocement Tunggal Prakarsa Tbk Q4 2018 Financial Results
Slide 2: Agenda
Agenda INDOCEMENT Indocement Fact Sheet & Indocement Today Current Domestic Market Condition Financial Update 2018 Investment Strategy Outlook 2019 SHE & Corporate Social Responsibility and Awards Q&A Slide 2 - March 2019 Public Expose - 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 • Strong RMC position in Jakarta with pull-through on CEM exposure 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 (Jakarta) Asset base CEM terminal RMC plant 25.5 mt CEM capacity BRUNEI MALAYSIA 2.8 mt AGG capacity 44 RMC plants Palembang Pontianak Samarinda Tanjung Priok Tarjun Cement Cirebon
Slide 5: 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 2018, we won in the three categories: cement, white cement and mortars. BUILDING
Slide 6: Board of Commissioners and Directors
Board of Commissioners and Directors INDOCEMENT Board of Commissioners Kevin Gluskie Dr. Lorenz Naeger Dr. Bernd Scheifele Dr. Albert Scheuer President Commissioner Commissioner Commissioner Commissioner Simon Subrata Tedy Djuhar VP Commissioner, VP Commissioner, Independent Independent Commissioner
Slide 7: Agenda
Agenda INDOCEMENT Indocement Fact Sheet & Indocement Today Current Domestic Market Condition Financial Update 2018 Investment Strategy Outlook 2019 SHE & Corporate Social Responsibility and Awards Q&A Slide 7 - March 2019 Public Expose - Indocement
Slide 8: 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 9: 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 Source: gover
Slide 10: Indonesia Cement Industry 2019 Capacity Share
Indonesia Cement Industry 2019 Capacity Share INDOCEMENT Capacity in million Tons per Annum (Capacity Share) 1. Semen Indonesia: 37.0 (32.2%) 75.9 94.3 108.0 111.5 114.8 2. Indocement: 25.5 (22.2%) 5 16 21 22 3. LHI: 14.7 (12.9%) 6 25 10 12 12 4. Conch: 11.2 (9.7%) 12 5. Bosowa: 7.4 (6.4%) 64 6. Cem
Slide 11: Indonesia – Volume Growth Amidst Oversupply Market
Indonesia – Volume Growth Amidst Oversupply Market INDOCEMENT Oversupply of 43 mtpa in 2019 100 91 85 % % 85 84 82% 17 % % 5 76 76 71 74% 76% 80 % % % 67 % 68% 64 63% 62% 61% 64% % 58% % 118 12 55% 57% 113 114 60 5 99 104 % 10 0 81 73 40 75 69 60 79 % 54 56 73 52 69 47 47 47 47 46 45 45 45 65 50 58
Slide 12: Regional Shift of Demand
Regional Shift of Demand: Better Growth Outlook in Central Java and Sumatera INDOCEMENT Market shares based on cement domestic sales (FY 2017, FY 2018) Indonesia: 62% , +4.8% Data in Box: Utilization Rate and Growth Rates YoY per area for FY 2018 Kalimantan: 66.3Mt 69.5Mt 83% , +7.2% Sulawesi: 45% ,
Slide 13: More bulk sales focus of Indocement
More bulk sales focus of Indocement - as Jakarta & INDOCEMENT West Java Projects started Bag/Bulk sales composition 20,000 Bag Bulk In thousand tons 18,000 3,517 3,931 +12% 16,000 4,658 +5% 4,109 -6% 4,203 +9% +11% 14,000 3,860 12,000 10,000 +1% -11% -3% +3% +4% 8,000 14,459 14,568 12,943 12,518 12,
Slide 14: Challenging Years, but The Worst is Left Behind
Challenging Years, but The Worst is Left Behind INDOCEMENT Declining ASP in 2017 due to tight competition was finally halted in 2018: Flat ASP in H1, then ASP starts to increase in Q3 2018 & stabilized upto now Jun ‘18 – Dec ’18 increase of +10.3% Source: average of Tiga Roda selling price surveyed
Slide 15: 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 Regions Year-to-Date (i
Slide 16: Agenda
Agenda INDOCEMENT Indocement Fact Sheet & Indocement Today Current Domestic Market Condition Financial Update 2018 Investment Strategy Outlook 2019 SHE & Corporate Social Responsibility and Awards Q&A Slide 16 - March 2019 Public Expose - Indocement
Slide 17: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income INDOCEMENT Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 FY 2017 FY18 vs. FY17 Description Bio IDR Bio IDR Bio IDR Bio IDR Bio IDR Bio IDR Variance (% ) Total Sales Volume (thousand tons) 4,432 3,915 5,411 5,409 19,168 17,909 7.0% Domestic Sales Volume (thous
Slide 18: Drivers Behind Outlook Upgrade
Drivers Behind Outlook Upgrade INDOCEMENT Q1 Q2 Q3 Q4 • Active end user program • Terminal in Palembang was • Higher volume by +9% • IDR appreciation initiated during beginning of the commissioned • Higher blended ASP • Declining coal price year to support volume growth achieved due to second tier •
Slide 19: 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. RMC Sales Volume AGG
Slide 20: Balance Sheet
Balance Sheet INDOCEMENT Dec 31, 2018 Dec 31, 2017 Variance Description Bio IDR Bio IDR Bio IDR % Current Assets 12,315.8 12,883.1 -567.3 -4.4% Non-Current Assets 15,472.8 15,980.6 -507.8 -3.2% Current Liabilities 3,925.6 3,479.0 446.6 12.8% Non-Current Liabilities 641.3 828.1 -186.8 -22.6% Equity 2
Slide 21: Continue in Cost Leadership to Maintain a Decent Margin
Continue in Cost Leadership to Maintain a Decent Margin INDOCEMENT 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 Continuing competitive environment, Manageme
Slide 22: Agenda
Agenda INDOCEMENT Indocement Fact Sheet & Indocement Today Current Domestic Market Condition Financial Update 2018 Investment Strategy Outlook 2019 SHE & Corporate Social Responsibility and Awards Q&A Slide 22 - March 2019 Public Expose - Indocement
Slide 23: Lampung terminal (Katibung, South Lampung)
Located in Katibung, South Lampung Coverage area : Lampung (Bag PCC & Bulk OPC). Capacity : 3 steel silos cement @ 4,000 ton (total cap. 12,000 ton) 1 Packers (rotary packer 12 spout) 180 ton/hour 1 Line of bulk loading system 1 Truck scale cap. 100 ton 1 Warehouse 1,000 M2 Area 4.2
Slide 24: Karawang terminal (Puspanegara, West Java)
Located in Puspanegara village, Karawang – West Java 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 Slide 24 - 31 January 2019 PT Indocement Tunggal Prakarsa Tbk – Mandiri Confe
Slide 25: Cost Efficiency Measure
Cost Efficiency Measure INDOCEMENT Increasing Usage of Alternative Fuel Sources 2015 2016 2017 2018 2030 • Signed agreement with Governor of Coal 96.3% 95.5% 95.8% 93.5% 70.0% West Java on Sept. 4, 2018 to purchase Natural Gas 0.5% 0.2% 0.4% 0.2% 500 ton of Refuse Derived Fuel, Fuel Oil 0.9% 0.9% 0.
Slide 26: Agenda
Agenda INDOCEMENT Indocement at Glance Current Domestic Market Condition Financial Update 2018 Investment Strategy Outlook 2019 SHE & Corporate Social Responsibility and Awards Q&A Slide 26 - March 2019 Public Expose - Indocement
Slide 27: Outlook of Indonesian Cement Market
Outlook of Indonesian Cement Market INDOCEMENT National cement consumption growth started to turn positive and grew by 5% in 2018 (versus 7.6% in 2017) and expected to grow by 4% in Election Year of 2019 Consumption in 2019 will be driven by infrastructure projects plus commercial and residential pr
Slide 28: Agenda
Agenda INDOCEMENT Indocement Fact Sheet & Indocement Today Current Domestic Market Condition Financial Update 2018 Investment Strategy Outlook 2019 SHE & Corporate Social Responsibility and Awards Q&A Slide 28 - March 2019 Public Expose - Indocement
Slide 29: Toward The World Class Safety Culture
Toward The World Class Safety Culture INDOCEMENT Indocement-Safety Culture Development to achieve Zero Harm toward World Class Safety Culture" Management has positioned SAFETY & HEALTH as highest attention and commitment Safety Leadership to demonstrate Management’s commitment and ensure all w
Slide 30: Indocement's Local Villages ("Desa Binaan")
Indocement’s Local Villages (“Desa Binaan”) INDOCEMENT 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 Kedungbunder Desa
Slide 31: Indocement's Good Works: Education & Health
Indocement’s Good Works: Education & Health INDOCEMENT Scholarship Education Infrastructure Education Facilities Improvement • Furniture Skillfull Trainings • Since 1990 • School Books • Total beneficaries 13.152 • School Renovation • Garmen Training students • Build Clasroom • Construction SMP: 4
Slide 32: Indocement's Good Works: Social & Culture
Indocement’s Good Works : Social & Culture INDOCEMENT Construction of Public Sport Assistance Construction of Worship Facilities Facilities • Soccer training from an • Building Bridge early age • Concreting Road • Badminton training from an early age Before After RUTILAHU Program (Uninhabitable Hous
Slide 33: Indocement's Good Works: SDP "Local Hero"
Indocement’s Good Works: SDP “Local Hero” INDOCEMENT They arelocal agents of change who act as movers and motivators for other communities to improve welfare through empowerment programs in each region. They are not just a real example for local residents in achieving independence, but also have to
Slide 34: Indocement's Good Works: SDP "Batik Ciwaringin"
Indocement’s Good Works: SDP “Batik Ciwaringin” INDOCEMENT 6 In 2013-2015 5 In 2011-2012 7 In 2016-2017 2 In 1960 In 2005-2015 • Implementation of 3 • Batik training clean production - Capital • Facilities ECONID • Competency Use of natural assistance from building • Cooperative certification of bat
Slide 35: Indocement's Good Works: SDP Tourism "Banyu Panas"
Indocement’s Good Works: SDP Tourism“Banyu Panas” INDOCEMENT WISATA BANYU PANAS Addition of Official Travel cold water Destinations pools & play Fencing, by the facilities Arrangement wading pools, play facilities, Cirebon of springs, toilets, stalls Regency Construction construction for MSME Touris
Slide 36: Indocement's Good Works: SDP "Mangrove Conservation"
Indocement’s Good Works: SDP “Mangrove Conservation” INDOCEMENT Since 2012, Indocement has been conserving mangroves with almost 10 hectares area in Langadai Village In the past, people cut Mangrove trees to be used as firewood Indocement educates the communities to utilize Mangrove fruit processing
Slide 37: Indocement's Good Works: SDP "Vocational School"
Indocement’s Good Works: SDP “Vocational School” INDOCEMENT School Name Indocement supports the C 1 SMK Negeri 1 Cibinong T 2 SMK Negeri 1 Gn. Putri Ministry of Industry's Industrial R 3 SMK Budiniah Vocational program with P 4 5 SMK Al Murqoniyah activities: SMK Ash-Shoheh 1 Teacher Apprenticeship
Slide 38: Indocement's Good Works: "Indocement Peduli"
Indocement’s Good Works: “Indocement Peduli” INDOCEMENT Indocement's Management, Employees and Labor Unions voluntarily contribute to reduce the suffering of victims of the National disaster at Lombok, Palu and Donggala Earthquakes and the Banten Tsunami Indocement built a Supporting Puskesmas with
Slide 39: Awarding
INDOCEMENT Awarding Slide 39 - March 2019 Public Expose - Indocement
Slide 40: Awards 2018
Awards 2018 INDOCEMENT 13 February “Property Product Satisfaction awards” for Cement and White Cement Category from Property-in Magazine 23 February Two awards “Indonesia Corporate Social Responsibility Award-II-2018” as Platinum Awards (Excellent–A) for Public Company category and “The Big 7 – The
Slide 41: Awards 2018
Awards 2018 INDOCEMENT 26 July Indocement received three “Top Brand Indonesia Awards 2018” for Cement, White Cement, and Mortar TR30. 6 September “Indonesian Sustainable Development Goals Award (ISDA) 2018” for Platinum Category - SDGs 4 (Quality Education) on Center of Community Training and Empowe
Slide 42: Awards 2018
Awards 2018 INDOCEMENT 27 October Two Indocement’s Quality Control Circles received Gold award on “International Convention on Quality Control Circle (ICQCC) 2018” 2 November “Good Corporate Governance Awards 2018/4th IGCGA 2018” and “Operational Excellence Awards-I-2018” from Economic Review Magazi
Slide 43: Awards 2018 and 2019
Awards 2018 INDOCEMENT 11 December Three Indocement Factory received “Green Industry Awards Level 5” from Ministry of Industry of Republic of Indonesia 12 December “Top 50 Big Capitalization Public Listed Company” as a company with the best GCG practice in the 10th IICD - Corporate Governance Confer
Slide 44: Agenda
Agenda INDOCEMENT Indocement Fact Sheet & Indocement Today Current Domestic Market Condition Financial Update 2018 Investment Strategy Outlook 2019 SHE & Corporate Social Responsibility and Awards Q&A Slide 44 - March 2019 Public Expose - Indocement
Slide 45: Thank You
INDOCEMENT THANK YOU Better shelter for better life… Slide 45 - March 2019 Public Expose - Indocement Indocement’s Palimanan Factory
Slide 46: 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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