Pt Indocement Tunggal Prakarsa Tbk · IDX:INTP
Pt Indocement Tunggal Prakarsa Tbk — Indocement — Q2 2017 Earnings Presentation
22 slides from Pt Indocement Tunggal Prakarsa Tbk's earnings presentation, August 2017
Slide 1: Indocement
INDOCEMENT HEIDELBERGCEMENTGroup
Slide 2: Indonesia Macroeconomic Overview
Indonesia Macroeconomic Overview INDOCEMENT World Bank anticipates Indonesia’s economy to grow by 5.3% in 2017 and 5.5% in 2018 and 2019 supported by resilient domestic demand and improvement in private investment IMF: In 2017, growth is expected to rise modestly to 5.1%, led by a gradual pickup
Slide 3: Indonesian Cement Industry 2017 Landscape
Indonesian Cement Industry 2017 Landscape INDOCEMENT Lafarge Indonesia 1.5 mio ton Semen Bosowa 0.2 mio ton (g) 4.4 mio ton 3.0 mio ton (g) Indocement Anhui Conch 24.9 mio ton 4.5 mio ton Semen Indonesia 7.2 mio ton Semen Indonesia 0.9 mio ton (g) 7.4 mio ton Semen Baturaja Semen Kupang/Merah Putih
Slide 4: Demand/Supply Outlook: Oversupply Market
Demand/Supply Outlook: Oversupply Market INDOCEMENT in mio Tons CAGR Supply 2001-2015: 4.0% CAGR Supply 2016-2025: 2.4% CAGR Demand 2001-2015: 6.5% CAGR Demand 2016-2025: 6.8% 200 Mio Ton 100% 91.0% 91.2% 180 84.8% 85.3% 83.9% 85.2% 81.7% 79.7% 80% 160 76.1% 75.8% 76.2% 74.4% 73.7% 71.2% 70.5% 68.3%
Slide 5: Cement demand shows down trend 4 years in a row
Cement demand shows down trend 4 years in a row as multiplier INDOCEMENT effect of infrastructure spending has not been realized Source: Indonesian Cement Association, BPS Statistic 59.9 62.0 61.6 17.7% 55.0 58.0 15.2% 14.5% 48.0 38.1 38.4 40.8 9.7% 29.0 31.5 31.9 34.2 7.0% 29.4 5.2% 27.5 30.2 11.4%
Slide 6: Heavy Equipment Order may Reach 20% Higher YoY
Heavy Equipment Order may Reach 20% Higher YoY INDOCEMENT Confirmation of commodity sector recovery and infrastructure strong progress Heavy equipment order is a leading indicator for cement demand Slide 6 - August 2017 Q2 Results - Indocement Source: HINABI, Indonesian Heavy Equipment Association;
Slide 7: Domestic Consumption Growth & Market Share per region
Domestic Consumption Growth & Market Share per region YTD June 2017 INDOCEMENT Source: Indonesia Cement Association Market Growth: Note: >15% - Lebaran season in June 2017 corrected the market growth +4.1% in Ytd May 10-15% 2017. - Contrary, prior year Lebaran that hit the 5-10% market was occurred
Slide 8: Java is still key market area in delivering strong results
Java is still key market area in delivering strong results INDOCEMENT Geographic composition of Sales 76% 31% 30% 75% 30% 29% 74% 28% 29% 28% 28% 73% 28% 27% 27% 72% 27% 27% 26% 71% 26% 26% 26% 70% 25% 69% 25% 24% 68% 23% 73% 74% 75% 72% 73% 70% 74% 71% 72% 72% 73% 74% 67% 22% Q1 '15 Q2 '15 Q3 '15 Q
Slide 9: The importance of bulk sales continues
The importance of bulk sales continues INDOCEMENT In thousand tons Bag/Bulk sales composition Jan - Dec 20,000 18,000 16,000 3,517 3,931 20% 21% • Stronger focus on increasing 4,109 24% 3,860 14,000 24% bulk sales • High bulk volume in Jakarta 12,000 • Indocement benefits from 10,000 proximity to Ja
Slide 10: Continuous focus on cost control with disciplined spending on promotional activities
Continuous focus on cost control with disciplined INDOCEMENT spending on promotional activities Composition of Manufacturing Cost as % Fixed Cost Control – bio IDR Trend 1,200 1,095 +6% -7% 1,027 965 1,000 50% 44.4% -12% 40% 800 30% 600 23.2% 21.0% 20% 40.9% 340 +7% 319 326 +2% 400 11.4% 25.7% 23.1%
Slide 11: Continue in Cost Leadership to maintain a decent margin in H1 2017
Continue in Cost Leadership to maintain a decent margin INDOCEMENT in H1 2017 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 50.0% 40.0% 40.0% 35.0% 34.5% 34.
Slide 12: Financial Result
Financial Result INDOCEMENT Consolidated Statement of Comprehensive Income H1 2017 H1 2016 Variance Description Bio IDR Bio IDR Bio IDR % Total Sales Volume (thousand tons) 7,932 8,129 -196.1 -2.4% Domestic Sales Volume (thousand tons) 7,829 7,938 -109.2 -1.4% Export Sales Volume (thousand tons) 103
Slide 13: Balance Sheet
Balance Sheet INDOCEMENT Consolidated Statement of Financial Position • Outside dividend payment impact, inventories balance increased to anticipate peak volume in 2nd half. Inline with production, payable balance slightly higher. • Increase in Non-Current Assets compare to same period last year was
Slide 14: Our P14 in Citeureup has already started
Our P14 in Citeureup has already started INDOCEMENT A new Tiga Roda cement plant, with annual installed production capacity of 4.4 million cement at Citeureup, Bogor - Indonesia. IDR ~6 Trillion investment. A production line that equipped with modern and energy efficient facility. Designed to utiliz
Slide 15: Capacity Expansion & Future Investment to participate in Industry Growth
Capacity Expansion & Future Investment to participate in INDOCEMENT Industry Growth Full Operation in 2017 with combined cycle operation of 1 unit of aero derivative gas turbine (ADGT) to supply 73 MW (including power supply from Steam Turbine to Citeureup factory); Investment cost: IDR 468.3 Bio
Slide 16: Ready Mix Concrete and Aggregates Expansion
Ready Mix Concrete and Aggregates Expansion INDOCEMENT • Strengthening Ready-Mix Concrete business particularly high- grade quality in order to meet the increase demand of infrastructure development in Indonesia. • Current focus is on infrastructure projects and its domino-effect on development of r
Slide 17: Cement Market Outlook for 2017
CEMENT MARKET Outlook for 2017 INDOCEMENT Market Condition • National cement consumption growth started to turn positive and expected to grow around 4-5% in 2017 (versus negative growth of -0.6% in 2016) • Consumption in 2017 will increase in line with higher Government’s projects and some commercia
Slide 18: Indocement's Action Plan in 2017
Indocement’s Action Plan in 2017 INDOCEMENT • Run P14 production (10,000 tpd) in full-swing in 2017 will help to reduce further production cost by about USD 4-5 per ton • Optimize product mix from 13 line of cement production will bring competitive advantages of Indocement to introduce different typ
Slide 19: New Brand of Rajawali as fighting brand
New Brand of “RAJAWALI” as “fighting brand” INDOCEMENT • Through its existing distribution channel, Rajawali was initially launched on Oct 10, 2016 with presence in three cities in 2016 and already available in 30 cities, like: Jakarta, 15 cities in West Java, 6 Cities in Banten, and 8 Cities in Cen
Slide 20: End User Program
End User Program INDOCEMENT Slide 20 - August 2017 source: www.sementigaroda.com Q2 Results - Indocement
Slide 21: Thank You
INDOCEMENT 42 Years Building Indonesia KOKOH THANK YOU
Slide 22: 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