PUBLIC EXPOSE - Indocement Tunggal Prakarsa, PT.

PUBLIC EXPOSE 

Jakarta, March 13, 2013

AGENDA 

Sekilas General Indocement Information about Indocement 

Kondisi Current Pasar Domestic Semen Market Domestik Condition Saat ini 

Laporan Financial Keuangan Update 2012 2010 

Rencana Investment Strategi Plan Strategy Investasi 

Tinjauan Outlook 2013 2011 

Corporate Social Responsibility & Awards 

Q & A 

Public Expose – March 13, 2013 

2

AGENDA 

Sekilas General Indocement Information about Indocement 

Current Domestic Market Condition 

Financial Update 2012 

Investment Plan Strategy 

Outlook 2013 


Q & A 


3

INDOCEMENT HISTORY 

1985 

• PT Indocement Tunggal Prakarsa (“Indocement”) incorporated 

following merger of 6 companies owning 8 cement plants 

1989 • Public listed of Indocement in the Indonesia Stock Exchange 

1991 

• Acquired the 9 th plant in Palimanan 

• Completed Surabaya cement terminal 

• Started ready-mix concrete business 

1996-1999 • Completed the 10 th in Palimanan and 11 th plants in Citeureup 

2000 

2001 

2003 

2005 

• Acquired 12 th Plant via merger with PT Indo Kodeco Cement 

• HeidelbergCement Group became a major shareholder through 

its subsidiary Kimmeridge Enterprise Pte. Ltd. 

• Kimmeridge Enterprise Pte. Ltd. transferred shares in 

Indocement to HC Indocement GmbH 

• Introduced Portland Composite Cement (“PCC”) product to 

Indonesian market 

• 

2006 HC SE Asia GmbH, was merged into HeidelbergCement AG 

which then controlled 65.14% shares of Indocement 

• Acquisition of 51% stake in PT Gunung Tua Mandiri 

2007 • Completed modification of the 8 th plant which provided an 

additional annual capacity of 600,000 tons of cements 

2009 • Placement of 14.1% Heidelbergcement’s Shares in June 2009 

2010 

• Additional capacity of 1.5 mt cement mills capacity by August 

2010 in Cirebon Factory 


4

INDOCEMENT TODAY 

Leading Indonesian producer of quality & specialty cement products 

• 2nd largest cement manufacturer in Indonesia, listed on the Indonesia 

Stock Exchange 

• Integrated cement operations with a total current production capacity of 

18.6mn tons 

• Diversified product range including 

• PCC, Portland Cement I, II and V, Oil Well Cement, and 

• The one and only White Cement producer in Indonesia to date 

• One of the world largest cement producer HeidelbergCement Group is 

the majority & controlling shareholder – 51%, Salim – 13% and Public – 

36% 

• Market capitalization of approximately IDR 80 T - one of the largest in 

IDX 

• Over 6,000 employees 

• Well established “Tiga Roda” brand 


5

INDOCEMENT’S NEW BOARD – AS OF 27 November 2012 

Board of 

Commissioners 

Dr. Albert Scheuer 

President 

Commissioner 

Dr. Lorenz Naeger 

Commissioner 

Dr. Bernd Scheifele 

Commissioner 

Daniel Gauthier 

Commissioner 

Tedy Djuhar 

VP Commissioner, 

Independent 

Commissioner 

M. Jusuf Hamka 

Independent 

Commissioner 

I Nyoman Tjager 

VP Commissioner, 

Independent 

Commissioner 

Board of Directors 

Tju Lie Sukanto 

Director 

Franciscus 

Welirang 

VP Director 

Daniel Lavalle 

President Director 

Nelson Borch 

Director 

Kuky Permana 

Director 

Ramakanta 

Bhattacharjee 

Director 

Hasan Imer 

Director 

Daniel Fritz 

Director 

Benny S.Santoso 

Director 


6

INDOCEMENT’S BUSINESS DIVISIONS 

Cement is the core division comprising over 90% of sales 

INDOCEMENT 

Cement RMC AGGREGATE 

Others 

• Citeureup -9 

Plants 

• Cirebon –2 

Plants 

• Tarjun - 1 Plant 

• PT Pionirbeton Industri 

and PT Indomix 

Perkasa* – 31 batching 

Plants in Jabodetabek, 

West Java, and Central 

Java – capacity more 

than 3 mio m3. 

• PT Gunung Tua 

Mandiri - 51% 

(Aggregates Business) 

• PT Mandiri Sentra 

Sejahtera – 100% 

(Aggregates Business) 

• PT Dian Abadi Perkasa – 

99.9% (Cement Trading) 

• PT Multi Bangun Galaxy – 

99.9% (Terminal-Land 

Operation) 

• PT Pama Indo Mining - 

40% (Mining Services in 

Tarjun) 

• PT Bahana Indonor - 100% 

(Owns & operates one ship 

& two floating terminals) 

• PT Cibinong Center 

Industrial Estate - 50% 

(Industrial Estate in 

Citeureup) 

• Indocement (Cayman 

Island) Limited - 99.9% 

(Investment) 

• PT Mineral Industry 

Sukabumi 

100% (Trass Quarry) 


7

INDOCEMENT PLANT LOCATIONS AND MAJOR TERMINAL 

Samarinda Terminal 

Tj. Priok Terminal 

Tarjun Factory 

1 plants with production 

capacity of 2.6mt 

Banyuwangi 

Terminal 

Citeureup Factory 

9 plants with 

production capacity 

of 11.9mt 

Palimanan Factory 

2 plants with production 

capacity of 4.1mt 

Surabaya Terminal 

Lombok Terminal 

• One of the largest integrated factory complex in the world at Citeureup 

• State of the art technology with some of the most efficient kilns in operation today 

• Total current capacity is 18.6 mt 


8

AGENDA 

General Information about Indocement 




Outlook 2013 


Q & A 


9

INDONESIA CEMENT MARKET ANALYSIS 

Source: ASI Published data 

• Domestic market in 2012 has been very positive with growth of 14.5% 

• Domestic demand will grow positively as infrastructure will be build and people come to live 

around these infrastructures. 

• This will trigger a snowball effect for the domestic consumption 


10

CEMENT CONSUMPTION PER CAPITA IN THE REGIONAL MARKET 

1.800 

1.600 

1.400 

1.611 

kg/capita 

1.200 

1.115 

1.000 

800 

600 

623 

513 487 

400 

200 

223 196 190 

143 

0 

CH* SG ML VN TH ID PH IN 

ID 

• (2005) 

• Source: Deutsche Bank 

• Indonesia cement consumption per capita increase by 56% from 143 kg/capita in 2005 to 223kg/capita in 

2012 

• Reached an all‐time high of 223kg per capita in 2012 but still one of the lowest cement consumption per 

capita in the regional market 


11

12-MONTH ROLLING AVERAGE GROWTH OF DOMESTIC CONSUMPTION 

•Mainly due to our proximity Plant location to high demand market & our ample capacity, 

we have continuously outperformed the market 

8,6% 10,8% 

8,1% 

18,9% 18,9% 

18,0% 17,8% 

18,2% 16,7% 

15,1% 

13,4% 

14,2% 

10,8% 

10,5% 

4,5% 

7,1% 

24,3% 

24,4% 

22,9% 24,0% 

21,1% 

20,2% 

17,0% 

14,1% 

11,3% 

9,2% 

6,7% 6,8% 7,8% 8,7% 

6,2% 

6,0% 

23,8% 

22,3% 21,8% 21,3% 

19,6% 

18,0% 16,5% 

7,0% 

7,1% 

8,1% 

9,1% 

11,0% 

11,8% 

13,3% 

13,3% 

11,8% 

11,7% 

12,7% 

12,0% 

11,4% 

9,6% 

8,2% 

6,0% 

3,4% 

0,2% 

-1,9% 

-2,5% 

-1,4% 

-2,2% 

-2,0% 

-1,0% 

0,9% 

2,3% 

3,4% 

6,2% 

7,7% 

9,8% 

10,0% 

10,4% 

9,4% 

10,7% 

8,8% 

8,0% 

6,2% 

5,5% 

5,3% 

4,4% 

4,8% 

6,3% 

8,0% 

9,0% 

9,0% 

12,1% 

14,1% 

16,4% 

17,7% 

18,5% 

19,6% 

20,0% 

19,5% 

18,7% 

17,7% 

17,0% 

17,0% 

16,6% 

15,6% 

14,9% 

14,5% 

14,5% 

-4,1% 

-7,1% 

-8,0% 

0,4% 

-8,9% 

-10,4% 

-9,7% 

10,8% 

6,9% 

4,1% 

1,1% 

-1,2% 

-3,8% 

-7,6% 

12,6% 

13,7% 17,0% 

12,3% 

14,2% 

12,8% 

8,6% 

7,5% 

16,5% 

Jan 07 - Dec 07 

Feb 07 - Jan 08 

Mar 07 - Feb 08 

Apr 07 - Mar 08 

May 07 - Apr 08 

June 07 - May 08 

July 07 - June 08 

Aug 07 - July 08 

Sep 07 - Aug 08 

Oct 07 - Sep 08 

Nov 07 - Oct 08 

Dec 07 - Nov 08 

Jan 08 - Dec 08 

Feb 08 - Jan 09 

Mar 08 - Feb 09 

Apr 08 - Mar 09 

May 08 - Apr 09 

Jun 08 - May 09 

Jul 08 - Jun 09 

Aug 08 - Jul 09 

Sep 08 - Aug 09 

Oct 08 - Sep 09 

Nov 08 - Oct 09 

Dec 08 - Nov 09 

Jan 09 - Dec 09 

Feb 09 - Jan 10 

Mar 09 - Feb 10 

Apr 09 - Mar 10 

May 09 - Apr 10 

Jun 09 - May 10 

Jul 09 - Jun 10 

Aug 09 - Jul 10 

Sep 09 - Aug 10 

Oct 09 - Sep 10 

Nov 09 - Oct 10 

Dec 09 - Nov 10 

Jan 10 - Dec 10 

Feb 10 - Jan 11 

Mar 10 - Feb 11 

Apr 10 - Mar 11 

May 10 - Apr 11 

Jun 10 - May 11 

Jul 10 - Jun 11 

Aug 10 - Jul 11 

Sep 10 - Aug 11 

Oct 10 - Sep 11 

Nov 10- Oct 11 

Dec 10- Nov 11 

Jan 11- Dec 11 

Feb 11 - Jan 12 

Mar 11 - Feb 12 

Apr 11 - Mar 12 

May 11 - Apr 12 

Jun 11 - May 12 

Jul 11 - Jun 12 

Aug 11 - Jul 12 

Sep 11 - Aug 12 

Oct 11 - Sep 12 

Nov 11 - Oct 12 

Dec 11 - Nov 12 

Jan 12 - Dec 12 

Jan 12 - Dec 12 

Indonesia ITP 

•Source: ASI 


12

CAPACITY UTILIZATION IN INDUSTRY (CAPACITY VS SALES) – 

IN MT 

(Data ASI 2012) 

18.6 

97% 

96% 

12.2 

6.3 

8.7 

99% 

93% 

93% 

7.1 

1.6 

114% 

112% 

104% 

104% 

1.3 

99% 

99% 

98% 

65% 

64% 

3.0 

102% 

102% 

0.6 

43% 43% 

SAI SP SB ITP SH SI ST SBM SK 

Capacity Total Utilization Domestic 

• SI (Semen Indonesia) and ST (Semen Tonasa)'s capacity are including additional 2.5 mio t p.a. each 

beginning of this year. 


13

CURRENT TRADING 

Indocement sales volumes comparison 

Market Share 

29,7% 

30,6% 30,9% 

31,7% 

30,2% 

30,9% 

31,5% 

32,0% 

17,9 mt 

15,4 mt 

9,6 mt 10,0 mt 

10,7 mt 

12,3 mt 11,8 mt 

12,8 mt 

2,5 mt 

3,2 mt 

3,8 mt 

2,3 mt 

1,6 mt 

1,0 mt 

0,6 mt 

0,1 mt 

2005 2006 2007 2008 2009 2010 2011 2012 

Domestic 

Export 

• In 2012, Indocement domestic sales volume increased by 16.1%, higher than national growth of 

14.5%. As a result, Indocement market share reach 32.0% for the period. 

• Export sales volume was shrank by -84.5% to only 95k tons (previous year: 613k tons) as 

Indocement focus more to fulfill the high domestic demand. 


14

DOMESTIC CONSUMPTION GROWTH per region – 2012 

Regions Year-to-Date (in Tons) 2012-12 2011-12 

2012 2011 Inc./Dec. INTP SMGR SMCB INTP SMGR SMCB 

Jakarta 5,093,483 4,630,160 463,323 10.0% 41.0% 22.9% 28.9% 36.1% 24.7% 30.7% 

Banten 3,186,411 2,779,158 407,252 14.7% 50.2% 27.0% 20.3% 53.6% 25.4% 19.6% 

West Java 8,145,885 7,060,905 1,084,980 15.4% 60.1% 20.4% 19.5% 58.3% 22.5% 19.2% 

Central Java 6,158,689 5,302,862 855,827 16.1% 45.1% 34.6% 20.3% 45.4% 32.1% 22.6% 

Yogyakarta 829,343 762,668 66,675 8.7% 24.8% 35.2% 40.0% 21.3% 34.5% 44.2% 

East Jawa 6,964,532 5,979,268 985,263 16.5% 16.0% 70.6% 11.0% 15.9% 69.9% 11.3% 

Java 30,378,341 26,515,021 3,863,320 14.6% 41.7% 36.3% 19.9% 40.7% 36.2% 20.8% 

Sumatera 12,008,596 11,027,719 980,877 8.9% 14.0% 44.2% 13.6% 15.5% 43.1% 11.7% 

Kalimantan 4,077,812 3,360,842 716,971 21.3% 30.1% 45.4% 15.5% 28.9% 47.6% 14.1% 

Sulawesi 4,111,424 3,526,632 584,791 16.6% 15.8% 59.7% 1.2% 13.6% 60.1% 1.1% 

Nusa Tenggara 3,168,402 2,778,792 389,610 14.0% 36.7% 35.1% 5.4% 36.9% 37.2% 4.5% 

East Indonesia 1,223,949 790,889 433,060 54.8% 17.1% 59.5% 1.1% 17.0% 62.2% 0.5% 

Outside Java 24,590,184 21,484,874 3,105,309 14.5% 20.1% 46.6% 10.1% 20.1% 46.5% 9.0% 

Indonesia 54,968,525 47,999,895 6,968,629 14.5% 32.0% 40.9% 15.6% 31.5% 40.8% 15.5% 

Market Growth: 

10-15% 

15-20% 

5-10% 

>20% 

AGENDA 



Financial Update 2010 2012 


Outlook 2013 


Q & A 


16

FINANCIAL RESULTS 2012 

Consolidated Income Statement 

2012 2011 Change Comments 

Sales Volume (k Tons) 

In Billion IDR 

17,977 16,009 12% Higher domestic sales by 16,1% offset with 

lower export sales by 84.5% 

Net Revenues 17,290 13,888 25% Higher domestic sales volume with increase of 

domestic selling price by 7% in 2012 

Cost of Revenues (9,020) (7,453) 21% Higher production volume & higher energy 

costs has resulted cost of revenues increase 

by 21% but cost revenues per ton increased 

only by 8% since a lot of cost-efficiency 

program has been implemented 

Gross Profit 

as % of Net Revenues 

8,270 

47.8% 

6,435 

46.3% 

29% 

Operating Expenses 

(2,425) 

(2,008) 

21% 

Higher logistics cost due higher sales volume 

and higher tariff. 

Other Operating Income / 

(Expenses) 

32 

(9) 

451% 

Higher other operating income mainly due to 

increase in scrap sales and income received 

from Wold Bank regarding Certified Emition 

Reduction (CER) of blended cement 

Operating Profit 


5,877 

34,0% 

4,418 

31.8% 

33% 

EBITDA 


6,650 

38,5% 

5,082 

36.6% 

31% 

Finance Income (Cost) 354 282 26% In line with increase in cash & cash equivalent 

in 2012 

Equity in Net Earnings of 

9 8 8% 

Associated Companies 

NET INCOME FOR THE 

PERIOD 

4,763 3,602 32% 

Attributable to owners of 

the company 

Attributable to non 

controlling interest 

4,760 3,597 32% 

3 5 -35% 

17

FINANCIAL RESULTS – 2012 

Consolidated Balance Sheet & Financial Highlights 

In Billion IDR 

Current Assets 14,579 10,310 

Non Current Assets 8,176 7,841 

Current Liabilities 2,419 1,476 

2012 2011 Comments 

Significant increase in cash & cash equivalent 

balance following strong free operating cash flow in 

2012 which inline with increasing of sales volume 

and price 

Non Current Liabilities 917 941 

Net Equity 19,419 15,734 

Assets 22,755 18,151 

• Dividend payout ratio of 30% amounting to IDR 1.1 trillion paid in July 7, 2012 


18

AGENDA 





Outlook 2013 


Q & A 


19

CAPEX PLAN STRATEGY 

Strategically positioned to capitalize on 2012 demand and beyond 

• Additional new cement mills with capacity of 1.9 MT per annum is under construction in 

Citeureup 

• To anticipate the strong domestic demand, the company is under final stage to start the 

construction of a brownfield cement factory with the production capacity of 4.4 million tons per 

year in Citeureup area. In addition to that, on February 22, 2013, the Company has signed a 

preliminary agreement ("LOI") regarding the supply of equipment, construction and 

implementation services with Sinoma Group as part of the construction of a new plant in 

Citeureup. Overall value of the new plant is estimated at between IDR 5. 5 to 6.5 trillion 

• The company is also under final study to construct two new greenfield cement factories with the 

production capacity at least 2.5 million tons per year each, one in Central Java and one in 

Outside Java. 

Millions Tons 

+9 - 10 mt 

+ 0.6 mt 

+ 1.5 mt 

+ 1.9 mt 

16.6 17.1 

18.6 

20.6 

30 - 31 

2005 2007 2010 2013 2015/2017 


20

READY-MIX CONCRETE EXPANSION 

• Indocement keeps strengthening its ready-mix 

concrete in order to meet the increase of demand in 

ready mix concrete for the construction of residential 

and high rise building in Jakarta and West Java area 

by heavily investing in new batching plants and 

mixer trucks. This has brought some contribution to 

gain more market share. 

• Following the rising trend of cement demand and 

increased capacity, the sales volume of ready-mix 

business growth significantly in the last 2 years. 

• The 2012 sales volume has increased around 45% 

• One of the market leader in RMC business 

3.700 

3.400 

3.100 

000m3 

3.517 

2.800 

2.500 

2.200 

2.429 

1.900 

1.600 

1.300 

1.000 

800 

630 683 

930 956 

1.221 

700 

400 

100 


2005 2006 2007 2008 2009 2010 2011 2012 

21

AGENDA 





Outlook 2011 2013 


Q & A 


22

OUTLOOK 2013 

• National market 2013 is estimated to grow in about 7%-8% 

• Land acquisition bill has been passed by parliament in December 2011 

following by the implementing regulation in April 2012 to support the 

certainty of infrastructure projects 

• Benefit for the cement sector would be stronger long term structural 

support for cement demand underpinned by increased investment in 

infrastructure projects. 

• Expected that higher proportion of bulk cement when the Governmental 

infrastructure projects are executed soon following approval of land 

acquisition bill and 

• The trend of a stronger residential market as well as high-rise building still 

continues in 2013 following by rapidly growing middle class which 

continues to be the key driver 


23

AGENDA 





Outlook 2013 


Q & A 


24

CSR IN SUPPORTING GOAL 1 MDGS 

ERADICATE EXTREME 

POVERTY AND HUNGER 

Apprentice school 

• 50 participants attended 4 months 

training as Truck Operators 

• 30 participants attended 3 months 

skill training as Mechanics 

Truck Operator 


25


ERADICATE EXTREME 

POVERTY AND HUNGER 

• Provision of Skill training to 

surrounding community in 

Cirebon 

• Establishment of Batik 

Cluster namely Kampung 

Batik Ciwaringin, creating 

additional income for more 

than 40 housewives. 


26


ACHIEVE UNIVERSAL PRIMARY 

EDUCATION 

Effective Teaching 

Principals & teachers in Citeureup 

• > 500 Primary 

students around 

Citeureup attended 

special training and 

practice of GASING 

mathematics 

• Effective Teaching 

for surrounding 

teachers in all 3 

locations. 

Participants of Beijing Olympic 2011 


27


ENSURE ENVIRONMENTAL 

SUSTAINABILITY 

King Grass Plantation 

• > 15,000 ton of dried king grass has been 

produced to replace fossil fuel 

• Continue research of other type of energy 

crops such as Kemiri Sunan and Nyamplung 

•Natural drying of King Grass 

•2 months old King Grass 


28

AWARDS 2012 

• February 2 - Palimanan Factory received “The Best Implementation of Security 

Management System in 2012” (Sucofindo International) 

• April 16 - "PWI Awards 2012" for its participation in maintaining good communication 

with Bogor’s media (PWI Kabupaten Bogor) 

• June 21 - “2012 Corporate Image Award” for the 7 th time, as the Best in Building and 

Managing Corporate Image (Frontier Consulting Group and Indonesia Businessweek 

magazine) 

• July 9 - “The Largest Corporate Taxpayer in 2011" (Directorate General of Tax of West 

Java II) 

• July 10 - “Best Managed Company in Indonesia” (Finance Asia magazine, Hong Kong) 

• July 10 - “Indonesia Green Awards 2012” for Green Manufacture ufor the 3 rd time (Bisnis 

& CSR magazine and Ministry of Forestry of RI and La Tofi School of CSR) 

• July 31 – Cement “Tiga Roda” is awarded "2012 Top Brand Award" for cement category 

(Marketing magazine and Frontier Consulting Group) 


29

AWARDS 2012 

• July 31 – “Green CEO 2012” for President Director of Indocement, Daniel Lavalle (Warta 

Ekonomi magazine) 

• November 20 - “Best Indonesia’s Companies in 2012” in the Biggest Growing Equity 

Cement Company (Warta Ekonomi magazine) 

• December 3 – Gold Rating for the 2011-2012 PROPER Program for Palimanan Factory, 

Cirebon. Meanwhile, Citeureup dan Tarjun factories received Green Rating (Ministry of 

Environment of RI) 

• December 3 - “Commendation for First Time Sustainability Report 2011” (National Center 

for Sustainability Reporting) 

• December 7 - “2012 Green Industry” for Citeureup Factory (Ministry of Industry of RI) 

• December 15 - “Customer Award 2012” for Dry Bulk Owner category(PT Pelindo III – 

Surabaya) 

• December 19 - "Indonesia Most Trusted Companies 2012“ (SWA magazine and Indonesia 

Institute for Corporate Governance) 


30

AGENDA 





Outlook 2013 


Q & A 


31

THANK YOU 


32

PUBLIC EXPOSE - Indocement Tunggal Prakarsa, PT.

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