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					Bursa Efek Indonesia
Jakarta,25 November 2008
Agenda
  General information about Indocement
  Indonesia Current Market Condition
  Financial Update
  Investment Plan Strategy
  Outlook
  Future prospect and Investment
  Consideration




                     2
Indocement Shareholders Structure




                    Public
                    22%

                                    HCAG
                                    65%
             PT Mekar Perkasa
                  13%




                                3
Indocement Businesses



     Cement                       Ready-Mix Concrete
                                  Ready-Mix                                      Others

• Citeureup - 9 Plants        • PT Indomix Perkasa – 6 Plants      •• PT Dian Abadi Perkasa – 99.9%
                                                                       PT Dian Abadi Perkasa – 99.9%
                                (Capacity : 360.000 cubic meter)      (Cement Trading)
                                                                       (Cement Trading)
• Cirebon - 2 Plants
                              • PT Pionirbeton Industri * – 7      •• PT Multi Bangun Galaxy * – 99.9%
                                                                       PT Multi Bangun Galaxy * – 99.9%
• Tarjun - 1 Plant                                                    (Terminal-Land Operation)
                                Plants                                 (Terminal-Land Operation)
                                (Capacity : 420.000 cubic meter)
                                                                   •• PT Pama Indo Mining -- 40%
                                                                       PT Pama Indo Mining 40%
                                                                      (Mining Services in Tarjun)
                                                                       (Mining Services in Tarjun)
                                                                   •• Stillwater Shipping Corp.* -- 50%
                                                                       Stillwater Shipping Corp.* 50%
                                                                      (Shipping)
                                                                       (Shipping)
                                                                   •• PT Bahana Indonor* -- 50%
                                                                       PT Bahana Indonor* 50%
                                                                      (Owns & operates one ship & one
                                                                       (Owns & operates one ship & one
                                                                      floating terminal)
                                                                       floating terminal)
                                                                   •• PT Cibinong Center Industrial
                                                                       PT Cibinong Center Industrial
  * Owned indirectly through a subsidiary                             Estate
                                                                       Estate
                                                                       -- 50% (Industrial Estate in Citeureup)
                                                                          50% (Industrial Estate in Citeureup)
                                                                   •• Indocement (Cayman Island)
                                                                       Indocement (Cayman Island)
                                                                      Limited
                                                                       Limited
                                                                      -- 99.9% (Investment)
                                                                          99.9% (Investment)
                                                                   •• PT Gunung Tua Mandiri -- 51%
                                                                       PT Gunung Tua Mandiri 51%
                                                                      (Aggregates Business)
                                                                       (Aggregates Business)


                                                          4
     Indocement Plant Locations and Major Terminal
                                                                         Tarjun Factory




    Tj. Priok Terminal



                              Semarang Terminal




    Citeureup Factory



                         Cirebon Factory          Surabaya Terminal   Lombok Terminal


•Total current capacity of Indocement is 17.1 mt cement (Ctrp – 11.9 mt,
Cir - 2.6 mt and Trj - 2.6 mt)
                                                  5
Indonesia Cement Market Analysis
Strong growth of cement consumption

 47.5 mt        47.5 mt
                                46.1 mt                       45.5 mt                45.5 mt                 45.5 mt
                                               44.9 mt

                                                           Highest record                                    +11%


                                                                                       +14.4%




                                                                                                                 37.9 mt
                                                                 34.2 mt
                                                 31.9 mt
                                  31.5 mt




                                                                                           31.7mt
                   30.2 mt
   27.5 mt




                                                                            27.7mt
  2003           2004           2005            2006           2007        Oct 07 Oct 08                       F 08
                Domestic Consumption                                        Total Supply
                                                                                                    Source: ASI Published data



Highest record in domestic demand in 2007 but no major additional supply
Outside Java market continued its growth up to now (the sales volume outside Java as a percentage of
national sales became 44.1% in Oct 08 vs 42.3% in Oct 07 and 42.5% FY07 )
High demand in 2008 is strongly contributed from the skyrocketing of commodities price in H1 and also
good weather in the greater Jakarta and West Java (big flood in 1Q07 – low base)

                                                       6
Domestic Consumption Growth – YTD Oct 08




                                                                             Market Growth:

                                                                                     >20%


                                                                                 15-20%


                                                                                 10-15%


                                                                                 5-10%

                                                                                     <5%



Strong national growth of 14.4% in Oct’08 YTD. Meanwhile, Indocement grew by 20.3%
                                             7
  3 Biggest Market Players




                                                                                                                             32.3%
                                                                                      30.9%
                                              30.6%
    29.8%



                    25.1%




                                                               24.4%




                                                                                                                                              21.7%
                                                                                                      21.7%
            15.2%




                                                                                              14.6%



                                                                                                              14.2%




                                                                                                                                      14.2%
                                                                       13.6%




                                                                                                                                                      13.3%
                                                      12.7%
                            12.3%




                                                                                                                      8.6%
                                                                               8.4%




                                                                                                                                                              8.3%
                                    7.9%




            2005                                              2006                              2007                                  YTD Oct 08
        Indocement                         Holcim             Semen Gresik                    Semen Padang                           Semen Tonasa

Note: Gresik Group is a combination of Semen Gresik, Padang, and Tonasa

               Indocement’s market share show increasing trends due to the current spare capacity to
                                         supply domestic strong demand

                                                                                      8
Indocement Sales Highlights in YTD October 08
                                                  Market Share
                                                                                  32.5%
                           30.0%                   30.6%         30.9%
              29.5%                      29.7%                                         Oct 08:
                                                                                         10.5
                                                                             Oct 07:
                                                                                 8.7
                                                                 3.8 mt
                      3.2 mt        2.5 mt        3.2 mt
   2.6 mt                                                                                        Oct 07:
                                                                                                 3.2




                                                                   10.7 mt
                                                    10.0 mt
                                         9.6 mt
                        9.2 mt




                                                                                                       Oct 08:
     8.4 mt




                                                                                                        2.0


   2003               2004              2005       2006          2007           YTD Oct 08

                             Domestic                                          Export


 YoY domestic sales increased by 20.8%, while export volume declined by 36.5% in order
 to bring in adequate supply to the domestic market
 Market share in YTD Oct 08 grew to 32.3% because of company’s ample capacity to
 supply strong demand especially in its home market

                                                      9
Financial Results Q3
in bio IDR
                                       Q3 2008       Q3 2007    Change
Sales Volume (k Tons)                      11,326     10,700       6%
Net Revenues                                7,249      5,306      37%
Cost of Revenues                            4,284      3,327      29%
Gross Profit                                2,965      1,979      50%
               as % of Net Revenues          40.9%      37.3%

Op. Expenses                                1,178       858       37%
Income from Operations                      1,787      1,122      59%
               as % of Net Revenues          24.7%      21.1%

EBITDA                                      2,230      1,531      46%
               as % of Net Revenues          30.8%      28.9%

Interest Expenses                            -101       -151      -33%
Forex Gains/(Losses)                           15        -11     -236%

NET INCOME                                 1,231        699       76%
                                      10
Net Revenues Analysis Q3 2008
                                                                        Export Price
                                                                        +1.7%




                                                                         Domestic price
                                                                         +22.4%



                     Net Revenues
                     in Q3 2008
                     +36.6%
                                                                         Domestic volume
                                                                         +17.5%



                                                                          Export Volume
                                                                          -4.9%

Net revenues reached IDR 7.2 trillion, mainly due to strong domestic sales volume and domestic
                                       sales price increase

                                               11
 Strong and Healthy Balance Sheet
 in bio IDR                                                    80                               Net Borrowing to Assets
                                                              832
                                                                    68                          Net Gearing
                                   Q3          Q3                         55
                                 2008        2007                                45     42
                                                                                               29
                                                                    292                               23
                                                                          164                                 11
                                                                                                                         5
Current Assets                   2,973       2,469                               102    87     54 16  37
                                                                                                       7
                                                              2000 2001 2002 2003 2004 2005 2006 2007 Q3
Non Current Assets               7,733       7,779                                                    08
                                                              974
Current Liabilities              1,804          966                                            Net Debt Position
                                                                    776
                                                                           698
Non Current
                                    870      2,647                                545
Liabilities                                                                              437
                                                                                                312
                                                                                                       246
Equity                           8,032       6,634                                                                 117
                                                                                                                             60

Assets                         10,706       10,248            2000 2001 2002 2003 2004 2005 2006 2007                        Q3
                                                                                                                             08



Strong Balance Sheet condition
• The outstanding loan balance is only USD 75 mio
• Financial ratio at the lowest level in more than a decade
• Cost of fund: LIBOR (or SBI) plus 90 bps
                                                      12
Investment Plan Strategy
•   Two new cement mills now are under construction in Cirebon that will add 1.5
    million tons of cement and expected to be ready in operation by second half of
    2009.
•   If any necessity by the domestic market condition, Indocement could further add
    capacity up to 22 MT by constructing 1-2 unit new mills in Citeureup and
    upgrading some plants either in Citeureup or Tarjun
•   The above investment for cement mills and kiln modification only takes about 9
    to12 months to be completed with the investment cost of about USD 50/ton
•   Investment in a new kiln with the capacity of 3 million tons per annum now is
    being postponed due to the current global economy condition.
                                                                    + 3.0 mt

                           + 0.6 mt            + 1.5 mt




                16.5 mt        17.1 mt         18.6mt       22 mt




                 2005            2007          2009         2012
                                          13
Investment Plan-Vertical Integration Strategy
•   Continuing to expand into aggregate business by having an integrated
    line of business in ready-mix and aggregates
•   In December 2007, Indocement signed a conditional agreement on
    the Sale and Purchase and Transfer of Assets with PT Handi Perkasa,
    with the estimated aggregates reserve of 100 mio tons. By Oct 2008,
    Indocement has done the first step to acquire 40% stake in the new
    company that takes over the operations and partial assets of Handi
    Perkasa and plan to be finalized the acquisition by end of the year
                                                       200-210 mt


                                   130 mt                 Others



                                     HP                    HP
              30 mt
              GTM                   GTM                   GTM

              2007                  2008                 2011-12
                                    14
Outlook - 2009
• Lack of liquidity in Indonesian banking will cause difficulty in getting
    financing and higher borrowing costs (contradictory with world’s lower
    interest rate) that will slowdown construction activities
•   Domestic cement consumption tends to be softer in 2009 due to the
    current financial condition and weakening commodity market
•   Bulk cement market is expected to suffer the most since the construction
    of high-rise building and some infrastructure projects may slow down due
    to financing difficulty
•   Lower export market due to uncompetitive export prices with the current
    high domestic coal price still continuing and tight competitive in the region
    due to lower cement demand globally
•   In order to create employment, Government should put priority in
    spending on property or infrastructure projects that could become the
    potential major driver for cement industry in 2009
•   Drop in fuel cost (but not the domestic coal price yet) will help the
    Company’s cost structure, but currently such benefit was eliminated by
    depreciation of Rupiah against USD

                                         15
Indocement Strong Point
Indocement is the largest single cement entity in Indonesia with its
core market in Greater Jakarta, West and Central Java, which
constitute about 41% of the national demand, and where most of the
major infrastructure projects in the pipeline are located.
Strong financial position with relatively low debt level and mainly in IDR
currency.
The lowest cost cement producer in Indonesia
Focus and cohesive management with a strong support from
HeidelbergCement Group as the main shareholder
Pioneer in innovation and the first company that successfully completes
a CDM project in Indonesia
Therefore, starting this year up to 2012, Indocement will generate other
income from the sale of CERs (emission reduction)
The lowest EV/ton against other cement companies in Indonesia



                                    16
Thank you




    17

				
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