Striving to maximize value
Corporate Presentation – June 2009
Corporate Presentation – June 2009
AGENDA
I.
Indonesia Cement Highlights
II. Corporat e Prof ile
III. Financial Perf ormance
IV. St rat egic Proj ect s
V. 2009 St rat egic Init iat ives
Singapore Kual a Lumpur
SGG
Semen Andalas Indonesia
Lhok Nga, Nanggroe Aceh D.
Cap. 1.6 mn tons
(under plant reconstruction)
Indocement Tunggal Perkasa
Jakarta
Cap. 17.1 mn tons
Semen Tonasa
South Sulawesi, Cap. 3.5 mn tons
Semen Padang
West Sumatera, Cap. 5.9 mn tons
Holcim Indonesia
Jakarta
Cap. 7.9 mn tons
Semen Bosowa Maros
Maros, South Sulawesi
Cap. 1.8 mn tons
Semen Baturaja
Palembang, South Sumatera
Cap. 1.25 mn tons
Semen Gresik
East Java, Cap. 8.6 mn tons
Semen Kupang
Kupang, East Nusa Tenggara
Cap. 0.57 mn tons
1.
INDUSTRY STRUCTURE AND PLANTS LOCATION
Tot al Inst alled Nat ional Capacit y in 2008: 46. 62 mn t ons/ year
(EoY 2007: 45. 72 mn t ons cement / year).
Nat ional cement consumpt ion in 5M2009: 14. 2 mn t ons (-8. 1%
growt h y-o-y) and in 5M2008: 15. 4 mn t ons (20. 2% growt h y-o-y).
Domest ic ut ilizat ion rat e in 2008: 82% (EoY 2007: 75%).
PT Semen Gresik (Persero) Tbk.
Total Cap. 18,0 mn tons
PT Semen Gresik (Persero) Tbk.
Total Cap. 18,0 mn tons
n
SGG has highest overal l capacit y
n
The ut ilizat ion rat es are t he best in
t he local i ndust ry
n
Wide geogr aphical cover age t hrough
dispersed f act ories
COMPARISON WITH PEERS
(2008 Cement Product ion Domest ic Ut ilizat ion)
COMPARISON WITH PEERS
(2008 Cement Product ion Domest ic Ut ilizat ion)
Company name Location Capacity (mm t on) Utilization*)(%)
Semen Gresik
Gresik & Tuban, East Java
8. 6
Semen Padang
Indarung, West Sumat era
5. 9
Semen Tonasa
Pangkep, Sout h Sulawesi
3. 5
SGG – Total Capacit y
Padang, Gresik/ Tuban, Pangkep
18. 0
92%
Player 1
Cit eureup (W-Java) , Tarj un (Sout h Kalimant an) 17. 10
Player 2
Narogong, Cilacap, Cent ral Java
7. 90
Ot hers
NA
3. 62
Industry
46. 62
82%
KEY HIGHLIGHTS
SGG: HIGHEST OVERALL CAPACITY AND UTILIZATION IN INDONESIA
SMGR SALES VOLUME VS SMGR PRODUCTION CAPACITY (P)
SMGR SALES VOLUME VS SMGR PRODUCTION CAPACITY (P)
Million tons of cement
q
SMGR product ion capacit y based on addit ional
capacit y f rom de-bot t l enecking and new cement
pl ant proj ect s
q
SMGR sales volume growt h based on int ernal
proj ect ion:
-
2009F sales volume growt h based on proj ect ion
of 3% annual growt h
-
2010F sales volume growt h based on proj ect ion
of 5% annual growt h
-
2011F sales volume growt h onwards based on
proj ect ion of 6. 5% annual growt h
q
SMGR product ion capacit y based on addit ional
capacit y f rom de-bot t l enecking and new cement
pl ant proj ect s
q
SMGR sales volume growt h based on int ernal
proj ect ion:
-
2009F sales volume growt h based on proj ect ion
of 3% annual growt h
-
2010F sales volume growt h based on proj ect ion
of 5% annual growt h
-
2011F sales volume growt h onwards based on
proj ect ion of 6. 5% annual growt h
17,1
18,0
19,0
19,3
19,3
23,6
24,1
24,3
17,7
18,2
19,1
20,3
21,7
23,1
24,6
2007 2008 2009F 2010F 2011F 2012F 2013F 2014F 2015F
Production Capacity
SMGR Sales Volume
AGENDA
I.
Indonesia Cement Highlight s
II. Corporate Profile
III. Financial Perf ormance
IV. St rat egic Proj ect s
V. 2009 St rat egic Init iat ives
n
1957 Inaugurat ion of Gresik I
n
1991 Init ial Public Of f ering, Market Cap IDR0. 63t n, resul t ing shareholding post IPO:
Government of Republic of Indonesia: 73%
Publ ic: 27%
n
1995 Acquisit ion of PT Semen Padang (Persero) and PT Semen Tonasa (Persero)
n
1998 Cemex became a st rat egic part ner by buying a 14% st ake, Market Cap IDR 4. 9t n
n
1999 Cemex upsized it s st ake t o 25% by end 1999
n
2005 Tot al inst alled product ion capacit y: 16. 92mm t . p. a., Market Cap IDR 10. 6t n
n
2006 Blue Valley Holdings bought Cemex s 24. 9% st ake in SGG
n
2008 Tot al Inst alled Capacit y: 18. 00mm t . p. a, Market Cap IDR 24. 8t n
Blue Valley Hol dings Pt e.
Lt d. (25. 19%)
Public
(23. 21%)
The Government of t he Republic of Indonesia
(51. 60%)
PT Semen Gresik (Persero)
Tbk.
PT Semen Padang
(99. 99%)
PT Semen Tonasa
(99. 99%)
Six subsidiaries
Non-cement producers
BRIEF HISTORY
BRIEF HISTORY
OWNERSHIP STRUCTURE
1OWNERSHIP STRUCTURE
1SGG IS THE #1 CEMENT COMPANY IN INDONESIA
¹ As of Febr uary 2009
1980 1984 1985 1986 1994 1996 1997 1998 2005 2006 2007 2008
SGG CAPACITY BUILD-OUT (MM TONS)
SGG CAPACITY BUILD-OUT (MM TONS)
Current capacity =
18. 0 mm tons
SGG
MARKET LEADER IN TERMS OF REVENUE, CAPACITY & MARKET SHARE
Leading market share for the past several years
Total Revenue = IDR 26,793tn
REVENUE SHARE — FY2008
REVENUE SHARE — FY2008
Source: Research report s, management plan
CAPACITY SHARE — 1Q2009
CAPACITY SHARE — 1Q2009
DOMESTIC MARKET SHARE — 1Q2009
DOMESTIC MARKET SHARE — 1Q2009
SGG
Total 45.7%
Total Consumption = 8.27 mn tons
SGG
Total 38.7%
Total Capacity = 46. 62 mn tons
Sem en
Total Revenue = IDR 6, 535tn
REVENUE SHARE — 1Q2009
AGENDA
I.
Indonesia Cement Highlight s
II. Corporat e Prof ile
III. Financial Performance
IV. St rat egic Proj ect s
V. 2009 St rat egic Init iat ives
7532
2004
2005
2006
2007
2008
Revenue
Gross Profit
Operating Profit
Ebitda
Net Profit
7,146
CONSISTENT REVENUE GROWTH WITH STRONG BALANCE SHEET
Revenue—last 5 years (
IDR bn)
Sales volumes—last 5 years (
mm t ons)
Cash balance
(IDR bn)
Total debt
(IDR bn)
5,614
6,933
8,163
8,948
11,760
454
599
565
653
450
2004
2005
2006
2007
2008
Domest ic Sales
Expor t Sales
CAGR(04—08)
(0. 2%)
20%
13.3 14.3 15.0 15.2
16.7
2.3 2.1
1.8 1.8 1.0
2004
2005
2006
2007
2008
Domest ic Expor t
(19%)
6% CAGR (04—08)
Not e: Sales volumes include cement and clinker volumes
1, 929
3, 836
2, 939
908
1, 424
2004
2005
2006
2007
2008
CAGR
(04—0
8) 43%
180
1,217
854
224
159
2004
2005
2006
2007
2008
CAGR (04—
08) -38%
SOLID PROFITABILITY INDICATORS
Return on asset
7.6%
13.7%
17.3%
20.8%
23.8%
2004
2005
2006
2007
2008
Net margin
8.4%
13.3%
14.8%
18.5%
20.7%
2004
2005
2006
2007
2008
Total assets turnover
91. 8%
107.9%
118. 0% 119.9%
127.7%
2004
2005
2006
2007
2008
:
Avg. total assets (IDR bn)
6, 613
6, 982
7, 397
8, 006
9,559
2004
2005
2006
2007
2008
Revenue (IDR bn)
6, 068 7, 532
8, 728 9, 601
12, 210
2004 2005 2006 2007 2008
509
1, 002
1, 296
1, 775
2, 524
2004
2005
2006
2007
2008
Net profit (IDR bn)
:
:
14. 0%
22. 4%
23.6%
26.8%
31. 3%
2004
2005
2006
2007
2008
Return on equity
EBITDA margin
23.3%
26.5%
25.6%
29.7%
31.7%
SOLID CREDIT METRICS
Debt/ EBITDA
EBITDA/ int erest
27.8x
245.0x
12.7x
5.9x
147.6x
2004
2005
2006
2007
2008
Debt/ capital
11%
12%
9%
66%
46%
2004
2005
2006
2007
2008
Debt/ equity
0.19x
0.33x
0.02x
0.04x
0.02x
2004
2005
2006
2007
2008
0.40x
0.90x
0.05x
0.10x
0.06x
*) Adj ust ed t o st ock split 1: 10 on August 2007 Source: I/ B/ E/ S mean est imat es
Not e: Act ual numbers are report ed number on t he year of announcement
SUSTAINABLE EPS GROWTH VS. ANALYST ESTIMATES
*)SUSTAINABLE EPS GROWTH VS. ANALYST ESTIMATES
*)SGG HAS BEEN ABLE TO OUTPERFORM MARKET EXPECTATIONS
ACT
UAL
EPS
CA
GR
(20
02-
200
8):
6 0%
59
5 1 . 4
7 4 . 3
1 2 1
2 1 5
2 8 3
3 5 5
26
6 3
8 6
169
2 1 8
299
4 2 6
0
5 0
100
150
200
250
300
350
400
2 0 0 2
2 0 0 3
2 0 0 4
2 0 0 5
2 0 0 6
2 0 0 7
2 0 0 8
AGENDA
I.
Indonesian Cement Highlight s
II. Corporat e Prof ile
III. Financial Perf ormance
IV. Strategic Proj ects
V. 2009 St rat egic Init iat ives
16. 9
16. 9
16. 9
16. 9
19. 3
19. 3
19. 3
19. 3
19. 3
0. 2
2. 6
4. 2
4. 8
5. 0
18.0
19.0
2. 1
1. 1
2. 4
24.3
24.1
23.6
21.9
19.3
19.3
17.1
9.0
11.0
13.0
15.0
17.0
19.0
21.0
23.0
25.0
2007
2008
2009
2010
2011
2012
2013
2014
2015
Installed base production
Production est imates (mm t ons)
PRODUCTION EXPANSION (P)
Addit ional capacit y f rom
de-bot t lenecking proj ect s (P)
Addit ional capacit y f rom
de-bot t lenecking proj ect s (P)
Addit ional capacit y f rom
new cement plant s (P)
Addit ional capacit y f rom
new cement plant s (P)
INVESTMENT COSTS OF STRATEGIC PROJECTS
Investment US$
mn/ MW
CAPEX PLANNING PROFILE (2008 – 2014)
CAPEX PLANNING PROFILE (2008 – 2014)
1, 262
- Keep Perf ormance
- Ef f i ciency Improvement
- Mandat ory
594
- Capacit y Expansion
- Power Plant
- De-bot t lenecking
- Human Capit al Mast er Plan & ICT
- Ot hers
AGENDA
I.
Indonesian Cement Highlight s
II. Corporat e Prof ile
III. Financial Perf ormance
IV. St rat egic Proj ect s
V. 2009 Strategic Initiatives
2009 Obj ective: Maintain Operating Margin
Key Drivers:
1. Maintain Market Share
2. Cost Management:
2009 Domestic Consumption Growth (E): 0% - 3%
Key Drivers:
1. GDP Growth
2. Declining Interest Rate Environment
2009 STRATEGIC INITIATIVES
§
Energy Cost
: minimize oil consumpt ion, decrease coal
consumpt ion index, increase energy alt ernat ive use, decrease
elect ricit y consumpt ion index, st abilize t he product ivit y
product ion level.
§
Procurement & Inventory Management
: improving
procurement synergy among t he group, j oint invent ory of raw
mat erial and spare part s, improve cent ralizing coal
procurement .
§
Maintenance Cost
: lowering spare-par t s use index, improve t he
t ot al predict ive maint enance & aut onomous program.
§
Packaging Cost
: lowering craf t paper index, increase t he use of
local cr af t paper.
§
Transportation
: improve cross bagging init iat ives, improve t he
perf ormance of packing pl ant s among t he group
3. Central Government Fiscal Stimulus
4. Regional Government Spending
3. Maintain Average Selling Pr ice
4. Capacity & Energy Management:
§
De-bot t lenecking/ opt imizat ion proj ect : addit ional capacit y of
1, 000, 000 t ons cement .
§
The const ruct ion of 2 (t wo) new cement plant s in Java and
Sulawesi wit h inst alled capacit y of 2. 5 million t ons of cement
respect ively. The const ruct ion of t he plant in Java t o be
complet ed in 2012 and t he cement plant in Sulawesi in 2011.
AGENDA
I.
Indonesian Cement Highlight s
II. Corporat e Prof ile
III. Financial Perf ormance
IV. St rat egic Proj ect s
V. 2009 St rat egic Init iat ives
COGM & COGS BREAKDOWN
Not e : USD middle BI rat e per 31 March 08: IDR 9, 217& 31 March 09:IDR 11, 575
IDR
USD
IDR
USD
Direct & Indirect Mat eri
22, 248
2. 41
29, 159
2. 52
Fuel
81, 498
8. 84
122, 183
10. 56
Electricit y
62, 072
6. 73
64, 398
5. 56
Direct Labor
40, 520
4. 40
53, 818
4. 65
Mai nt enance
43, 616
4. 73
51, 407
4. 44
Deplet ion, Depreciation & 41, 292
4. 48
24, 429
2. 11
GA, Tax & Insurance
13, 063
1. 42
10, 127
0. 87
304,308
33
355,521
31
1Q2008
IDR
USD
IDR
USD
COGM
304. 308
33,02
355. 521
30,71
DOMESTIC AVERAGE SELLING PRICE
475.000
500.000
525.000
550.000
575.000
600.000
625.000
650.000
675.000
700.000
725.000
750.000
Jan
Feb
Mar
Apr
Mei
Jun
Jul
Agt Sept
Okt
Nop Des
2009
2008
2007
2006
SGG domest ic average selling price – Rp/ ton
Source: Indonesian Cement Associat ion & BPS St at i st ic (Indust rial Origin *Const ruct ion Growt h **GDP Gr owt h 1Q 2009)
INDONESIA HAS EXPERIENCED SOLID ECONOMIC AND DOMESTIC CEMENT
CONSUMPTION GROWTH
Construction growth (RHS)
Domestic consumption (LHS)
GDP growth % (RHS)
(mio tons)
DOMESTIC CEMENT CONSUMPTION, CEMENT GROWTH, GDP GROWTH AND CONSTRUCTION GROWTH IN INDONESIA
14.2
27.2
27.5
30.2
31.5
32.1
34.2
38.1
2002
2003
2004
2005
2006
2007
2008
5M2009
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
§
Distribution warehouses in all areas of Java, Bali, Sumatra, Kalimantan, Sulawesi and Irian
§
15 large packing plants
§
Nationwide distribution network
§
Operate 4 special sea ports: Padang, Tuban, Gresik, Biringkassi
§
Total installed cap. EoY 2007: 17.1 mn tons and EoY 2008: 18.0 mn tons
SGG’ s PRODUCTION FACILITIES ARE WELL SUPPORTED BY STRATEGICALLY
LOCATED MARKETING AND DISTRIBUTION FACILITIES
Teluk
Tanj ung Priok Jakart a
Samarinda Kual a Lumpur
Tuban
Surabaya
Cement Plant
Packing Plant
Port
Warehouse
East Java
Margomulyo Tanj ung Wangi
Main Office:
Main Building of Semen Gresik
Jln. Veteran Gresik 61122 – Indonesia
Phone: (62-31) 3981731 -2, 3981745
Fax: (62-31) 3983209, 3972264
Representative Office:
Graha Irama Building, 11
thFloor,
Jln. HR Rasuna Said, Kuningan, Jakarta 12950 – Indonesia
Phone : (62-21) 5261174 – 5
Fax
: (62-21) 5261176
www.semengresik.com
T h a n k y o u
T h a n k y o u
IMPORTANT NOTICE
THIS PRESENTATION IS NOT AND DOES NOT CONSTITUTE OR FORM PART OF, AND IS NOT MADE IN CONNECTION W ITH, ANY OFFER FOR SALE OR SUBSCRIPTION OF OR SOLICITATION, RECOMMENDATION OR INVITATION OF ANY OFFER TO BUY OR SUBSCRIBE FOR ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT, COMMITMENT OR INVESTMENT DECISION WHATSOEVER.
THE SLIDES USED IN THIS PRESENTATION ARE STRICTLY CONFIDENTIAL AND HAVE BEEN PREPARED AS A SUPPORT FOR ORAL DISCUSSIONS ONLY. THE INFORMATION CONTAINED IN THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER PERSON, IN W HOLE OR IN PART.
This presentation includes forward-looking statements, which are based on current expectations and forecast about future events. Such statements involve known / unknown risks uncertainties and other factors, which could cause actual results to differ materially from historical results or those anticipated. Such factors include, among others:
economic, social and political conditions in Indonesia, and the impact such conditions have on construction and infrastructure spending in Indonesia; the effects of competition;
the effects of changes in laws, regulations, taxation or accounting standards or practices; acquisitions, divestitures and various business opportunities that we may pursue; changes or volatility in inflation, interest rates and foreign exchange rates;
accidents, natural disasters or outbreaks of infectious diseases, such as avian influenza, in our markets; labor unrest or other similar situations; and
the outcome of pending or threatened litigation.
We can give no assurance that our expectations will be attained.
DISCLAIMER
The information contained in this report has been taken from sources which we deem reliable. However, none of PT Semen Gresik (Persero) Tbk and/or its affiliated companies and/or their respective employees and/or agents make any representation or warranty (express or implied) or accepts any responsibility or liability as to, or in relation to, the accuracy or completeness of the information and opinions contained in this report or as to any information contained in this report or any other such information or opinions remaining unchanged after the issue thereof.
