PT Semen Indonesia (Persero) Tbk. billion in FY16. Ther e w ere increases in ot her income f rom fair value adjust m ent from st ep acquiit ion and w ast e t reat ment income; and deferred t ax from asset revaluat ion, t o support t he bot t om line
Sem en Indonesia’s t ot al sales volume in FY16 including Thang Long Cem ent in Viet nam reached 29 million t onnes (mt ) of cement , up by only 0.3% YoY. Indonesia’ domest ic sales volume w as 25.7 million t onnes FY16, dow n 1.1% YoY ref lect ing a w eak market .
PT Semen Indonesia (Persero) Tbk. 2
SEM EN INDONESIA REPORTS AUDITED CONSOLIDATED FY2016 RESULTS
PT Sem en Indonesia (Persero) Tbk. (“ SM GR” or “ t he Company” ) announced it s audit ed full year result s for t he period of t w elve mont hs ended in December 31, 2016. The Company recor ded r evenue and pre-t ax profit of Rp26,134 billion and Rp5,085 billion, respect ively, for t he period of FY16. Net incom e befor e minorit y int erest s w as recorded at Rp4,522 billion. The audit ed financial st at em ent s w ere prepar ed in accordance w it h t he Indonesian Generally Accept ed Account ing Principles. For more det ailed informat ion, please r ef er t o t he Company’s Consolidat ed Financial St at em ent s as filed w it h Indonesia Financial Service Aut horit y and t he Indonesia St ock Exchange on February 20, 2017.
PERFORM ANCE REVIEW
Sales Volume
Sem en Indonesia’ sales volume r eached 28.87 million t onnes in FY16, up 0.3% YoY. Demand w as rat her slow in t he last quart er of 2016. Domest ic sales volum e in Indonesia w as 25.68 million t onnes in FY16,
M illion tonnes Dec-16 Dec-15 Cha nge (%) 12M 16 12M 15 Cha nge (%)
Revenue
The Company’ s t ot al sales revenue in FY16 r eached Rp26,134 billion, dow n by only 3% YoY from Rp26,948 billion in FY15. This w as due t o decline in volume and selling price as t he impact of increasing compet it ion w it hin t he cem ent indust ry.
Cost of Revenue and Operating Expenses
The cost of revenue declined by 0.1% YoY t o Rp16,278 billion in FY16, dow n from Rp16,302 billion in FY15. This w as primarily due t o t he decline in energy prices and more efficient operat ion t hrough t he cost t ransformat ion program mes.
The Company’s operat ing expenses w as dow n by 1.5% t o Rp4,629 billion in FY16, up from Rp4,700 billion in FY15. Selling expenses increased 2.3% YoY t o Rp2,719 billion in FY16, from Rp2,659 billion in FY15, primarily from t ransport at ion and handling cost s and promot ion.
General and administ rat ive expenses rose 3.6% YoY t o Rp2,163 billion in FY16, from Rp2,088 billion in FY15, due t o increases in part nership program me and communit y development ; depreciat ion, but offset by t he decline in salar ies and compensat ions.
Ot her operat ing income rose t o Rp254 billion in FY16, from Rp46 billion in FY15. We recorded Rp127 billion of fair value adjust ment arising from st ep acquisit ion of Varia Usaha; Rp80 billion income of w ast e t reat m ent as w e used oil sludge t o replace coal as Exxon w as paying us for t aking t he oil sludge; and Rp9.8 billion of gain on sales of fixed asset s in FY16 compar ed t o only Rp0.03 billion in FY15.
Profitability
Gross profit w as dow n by 7.4% t o Rp9,856 billion in FY16, from Rp10,646 billion in FY15 and gross profit margin w as dow n 38% in FY16, from 40% in FY15. Our EBITDA margin w as also dow n t o 25.8% in FY16, from 27.4% in FY15.
PT Semen Indonesia (Persero) Tbk. 4
PROGRESS OF STRATEGIC PROJECTS
The const ruct ions of 2 (t w o) new cement plant s in Rembang, Cent ral Java and Indarung, West Sumat era, each w it h designed capacit y of 3m t pa (million t onnes per annum). Indarung new plant is scheduled for commer cial operat ion in April 2017, w hile Rembang plant remains suspended aw ait ing for t he new enviroment al permit s t o be issued by t he Cent ral Java government . These new plant s w ould add our designed capacit y t o 38mt pa.
W e are also progressing w it h t he Wast e Heat Recover Pow er Generat or project (WHRPG) in Tuban t o generat e 30M W pow er, for cost saving purposes and reduce CO2 emissions. The pr oject is t arget ed t o be compl et ed by t he end of t his year and operat ional in 2017.
DISCLAIM ER
The informat ion cont ained in t his report has been t aken from sour ces w hich w e deem r eliable. How ever, none of PT Semen Indonesia (Persero) Tbk and/ or it s affiliat ed companies and/ or t heir respect ive employees and/ or agent s make any r epr esent at ion or w arrant y (expr ess or implied) or accept s any responsibilit y or liabilit y as t o, or in relat ion t o, t he accuracy or com plet eness of t he informat ion and opinions cont ained in t his report or as t o any informat ion cont ained in t his report or any ot her such infor mat ion or opinions remaining unchanged aft er t he issue t her eof.
W e expressly disclaim any responsibilit y or liabilit y (express or implied) of PT Semen Indonesia (Per sero) Tbk, it s aff iliat ed companies and t heir respect ive employees and agent s w hat soever and how soever arising (including, wit hout limit at ion for any claim, proceedings, act ion, suit s, losses, expenses, damages or cost s) w hich may be brought against or suff er ed by any person as a result of act ing in reliance upon t he w hole or any part of t he cont ent s of t his report and neit her PT Sem en Indonesia (Persero) Tbk, it s affiliat ed companies or t heir respect ive employees or agent s accept s liabilit y for any errors, omission or mis-st at ement s, negligent or ot herw ise, in t he r eport and any liabilit y in respect of t he repor t or any inaccuracy t her ein or mission t here from w hich might ot herw ise arise is hereby expr esses disclaimed.
