cementing ustainable rowth - semen · pdf filestriving to maximize value 2 the country &...
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CEMENTINGUSTAINABLE ROWTH
DECEMBER 2009DECEMBER 2009
Striving to maximize value 1
AGENDA
I. Indonesia: Country & Cement Industry Profile
II. Corporate Profile
III. Market Update
IV. Financial Update
V. Strategic Projects
VI. Environmental Focus
VII. Future of Indonesia’s Cement Industry
VIII.Appendix
Striving to maximize value 2
THE COUNTRY & INDONESIAN CEMENT INDUSTRY AT A GLANCEGEOGRAPHY Area : 1,922,570 km2
Capital City : Jakarta Number of Islands : More than 8,500 islands Significant Islands : Java, Sumatera, Kalimantan Sulawesi, Papua
DEMOGRAPHY• Populations (June 2009) : 230 Millions• Population Growth : 1.3% p.a.
ECONOMY 2008 2009F 1) 2010F 1)
• GDP Per Capita 2) :• Annual GDP Growth :• Annual Inflation rate :• BI Rate (year end) :•US$ Exchange Rate (year end) :
CEMENT INDUSTRY 2008 2009F 3) 2010F 3)
• Production Capacity :• Domestic Growth :• Domestic Utilization :• Supply
Domestic : Export : Import 4) :
2,324 US$6.1%11.0%9.3%Rp10,950
2,193 US$4.5%3.9%6.5%Rp9,700
2,616 US$5.4%5.9%6.7%Rp9,549
46.62 mio tons11.5%82%
38.09 miotons4.93 mio tons1.53 mio tons
51.00 mio tons0%75%
38.09 miotons4.50 mio tons-
52.50 mio tons5.0%76%
40.00 miotons3.60 mio tons-1) Based on median of City, Danareksa & Bahana Research Institute
2) Based on Citigroup Global Market Research3) Based on Deutsche’s forecast4) Imported cement by PT Semen Andalas Indonesia which its cement plant now is being under reconstruction
Striving to maximize value 3
Singapore
Kuala Lumpur
SGG
11
22 33
44
55
66
77
88
99
Semen Andalas IndonesiaLhok Nga, Nanggroe Aceh D.Cap. 1.6 mn tons(under reconstruction)
Indocement Tunggal PerkasaJakartaCap. 17.1 mn tons
Semen TonasaSouth Sulawesi, Cap. 3.5 mn tons
Semen PadangWest Sumatera, Cap. 5.9 mn tons
Holcim IndonesiaJakartaCap. 7.9 mn tonsSemen Bosowa MarosMaros, South SulawesiCap. 1.8 mn tons
Semen BaturajaPalembang, South SumateraCap. 1.25 mn tons Semen Gresik
East Java, Cap. 8.6 mn tons Semen KupangKupang, East Nusa TenggaraCap. 0.57 mn tons
1.1.
2.2.3.3.
4.4.
5.5.
6.6.
7.7.
8.8.
9.9.
INDUSTRY STRUCTURE AND PLANTS LOCATION
PT Semen Gresik (Persero) Tbk.Total Cap. 18,0 mn tons
PT Semen Gresik (Persero) Tbk.Total Cap. 18,0 mn tons
SEMEN GRESIK GROUP: STRATEGIC LOCATIONS THROUGHOUT THE ARCHIPELAGO
Striving to maximize value 4
SGG*): HIGHEST OVERALL CAPACITY AND CAPACITY UTILIZATION IN INDONESIA
SGG has highest overall capacity
The utilization rates are the best in
the local industry
Wide geographical coverage through
dispersed factories
COMPARISON WITH PEERS (2008 Cement Production – Domestic Utilization)COMPARISON WITH PEERS (2008 Cement Production – Domestic Utilization)
82%46,620,000-INDUSTRY
66%3,620,000-Others
67%7,900,000Narogong and Cilacap (Central Java)Holcim
70%17,100,000Citeureup (West Java), Tarjun (South Kalimantan)Indocement TP
92%18,000,000Java, Sumatera, SulawesiSGG Total Capacity
91%3,500,000Pangkep (South Sulawesi)• Semen Tonasa
87%5,900,000Indarung (West Sumatera)• Semen Padang
97%8,600,000Gresik & Tuban (East Java)• Semen Gresik
Utilization (%)Capacity (tons)LocationCompany
KEY HIGHLIGHTSKEY HIGHLIGHTS
*) Semen Gresik Group*) Semen Gresik Group
Striving to maximize value 5
AGENDA
I. Indonesia: Country & Cement Industry Profile
II. Corporate Profile
III. Market Update
IV. Financial Update
V. Strategic Projects
VI. Environmental Focus
VII. Future of Indonesia’s Cement Industry
VIII.Appendix
Striving to maximize value 6
1957: Inauguration of Gresik I 1991: Initial Public Offering, Market Cap IDR0.63tn, resulting shareholding post IPO:
• Government of Republic of Indonesia: 73% • Public: 27%
1995: Acquisition of PT Semen Padang (Persero) and PT Semen Tonasa (Persero) 1998: Cemex became a strategic partner by buying a 14% stake, Market Cap IDR 4.9tn 1999: Cemex upsized its stake to 25% by end 1999 2005: Total installed production capacity: 16.92mm t.p.a., Market Cap IDR 10.6tn 2006: Blue Valley Holdings bought Cemex’s 24.9% stake in SGG, Market Cap IDR 21.5tn 2008: Total Installed Capacity: 18.00mm t.p.a, Market Cap IDR 24.8tn 2009: Targeted total installed cap: 19.00mm, Market Cap per Sept 30, 2009: IDR 37.4tn
Blue Valley Holdings Pte. Ltd. (24.90%)
Public (24.09%)
The Government of the Republic of Indonesia (51.01%)
PT Semen Gresik (Persero) Tbk.
PT Semen Padang(99.99%)
PT Semen Tonasa(99.99%)
Six subsidiaries Non-cement producers
BRIEF HISTORYBRIEF HISTORY
OWNERSHIP STRUCTURE1OWNERSHIP STRUCTURE1
SGG IS THE #1 CEMENT COMPANY IN INDONESIA
¹ As Sept 30, 2009
0,0
5,0
10,0
15,0
20,0
1957
1980
1980
1984
1985
1986
1994
1996
1997
1998
2006
2007
2008
2009
SGG CAPACITY BUILD-OUT (MM TONS)SGG CAPACITY BUILD-OUT (MM TONS)
Current capacity = 19.0 mm tons
Five subsidiaries Non-cement producers
Striving to maximize value 7
SGG’s COMPARATIVE & COMPETITIVE ADVANTAGE
Broadest footprint of plants and distributors
in Indonesia
GEOGRAPHIC SCOPE
Superior product quality through production and operational excellence
TECHNICAL CAPABILITIES
Highest plants utilisationin Indonesia
ASSET UTILISATION
Deep relationships with distributors to serve the retail and bulk markets
DISTRIBUTION NETWORK
Superior customer service via consistency in
product and delivery
CUSTOMER REPUTATION
High operating margins plus disciplined financial
management
FINANCIAL STRENGTH
SGGSGG
Striving to maximize value 8
BY ADOPTING THE MARKET LEADERSHIP POSITION IN INDONESIA, SGG HASDRIVEN SIGNIFICANT VALUE INCREASE
Cost leadership EBITDA
Distribution leadership Market share
Brand leadership Price
Service leadership Customer loyalty
Striving to maximize value 9
AGENDA
I. Indonesia: Country & Cement Industry Profile
II. Corporate Profile
III. Market Update
IV. Financial Update
V. Strategic Projects
VI. Environmental Focus
VII. Future of Indonesia’s Cement Industry
VIII.Appendix
Striving to maximize value 10
MARKET UPDATE (Cement Sales up to 11M2009)
0.116,185,67116,207,110GRAND TOTAL
(36.0)955,490611,369Total Export
(47.1)105,09355,548- Tonasa
(34.6)850,397555,821- Padang
---- Gresik
EXPORT:
2.415,230,18115,595,741Total Domestic
15.02,919,8803,359,072- Tonasa
(2.8)4,677,2864,546,974- Padang
0.77,633,0157,689,695- Gresik
DOMESTIC:
CHANGE (%)11M200811M2009DESCRIPTION
SMGR Sales Volume (Tons)
(17.6)664,336547,566Yogyakarta
(1.5)4,720,2174,649,905East Java
(3.0)39,550,04938,375,351GRAND TOTAL
(17.5)4,587,4813,784,539Total Export
(14.6)3,039,0982,593,913Export Clinker
(23.1)1,548,3831,190,626Export Semen
(1.1)34,962,56834,590,812TOTAL INDONESIA
(5.0)788,009748,612Maluku & Papua
4.61,867,5851,954,407Nusa Tenggara
(1.9)2,257,2172,214,885Kalimantan
15.12,388,8882,748,465Sulawesi
(3.0)8,185,7527,940,570Sumatera
(2.5)19,475,11718,983,872Total Java
1.43,983,1434,037,694Central Java
0.54,902,9944,928,837West Java
(12.2)1,880,8061,650,642Banten
(4.6)3,323,6213,169,228Jakarta
CHANGE (%)11M200811M2009DESCRIPTION
Industry Sales Volume (Tons)
Striving to maximize value 11
MARKET BY GEOGRAPHY (11M2009)
Domestic Consumption – Java remains as the largest market*)
23%
8%6%
6% 2%
East of Indonesia
Nusa Tenggara
Kalimantan
SulawesiJava55%
Sumatera
Indocement
Domestic Market Share*)
*)Source: ASI (Indonesia Cement Association)
*)Source: ASI (Indonesia Cement Association) 11.313.529.945.2TOTAL INDONESIA
8.01.111.779.16. EASTERN IND.
14.43.039.742.85. NUSA TENGGARA
9.06.924.659.34. KALIMANTAN
20.50.113.765.63. SULAWESI
30.58.415.345.72. SUMATERA
2.019.938.739.31. JAVA
OTHERSHOLCIMINTPSMGR
MARKET SHARE (%)REGION
SG
SP
ST
1
2
3
4
5
6
Striving to maximize value 12
AGENDA
I. Indonesia: Country & Cement Industry Profile
II. Corporate Profile
III. Market Update
IV. Financial Update
V. Strategic Projects
VI. Environmental Focus
VII. Future of Indonesia’s Cement Industry
VIII.Appendix
Striving to maximize value 13
22.39,2137,530Total Equity
22.111,7359,610Total Assets
34.42,4081,791Net Income
21.43,3792,783EBITDA
12.65,6475,014Cost of Revenue
25.74,7573,784Gross Profit
36.0410302EPS (full amount)
27.73,0592,396Operating Income
22.31,6981,388Operating Expenses
18.310,4048,798Net Revenue
Change (%)9M099M08
(restated)
Description(Rp bn)
FINANCIAL SUMMARY (9M2009 RESULTS)EBITDA (Rp billion)EBITDA (Rp billion)
EBITDA Margin (%)EBITDA Margin (%)
32.5%31.6%29.2%27.1%26.0%
9M099M089M079M069M05
3.379
2.783
2.0631.760
1.422
1000
1500
2000
2500
3000
3500
9M05 9M06 9M07 9M08 9M09
NET INCOME (Rp billion)NET INCOME (Rp billion)2.408
7061.027
1.272
1.791
400
800
1200
1600
2000
2400
9M05 9M06 9M07 9M08 9M09
NET INCOME Margin (%)NET INCOME Margin (%)
23.1%20.3%17.9%15.8%12.9%
9M099M089M079M069M05
Striving to maximize value 14
FOCUS ON REVENUE AND COST MANAGEMENT
435,376435,376
116,431
60,528
42,152
63,627
113,606
39,031
9M09
14.414.4380,692380,692COGSCOGS
24.091,618Fuel
19.350,753Transport.
13.9102,249Other
(1.5)42,801Maintenance
5.860,142Electricity
17.833,128Packaging
CHANGE (%)9M08COGS / Ton
250000
350000
450000
550000
650000
750000
850000
3M2008 6M2008 9M2008 FY2008 3M2009 6M2009 9M2009
Domestic ASP 2008/2009 COGS per ton 2008/2009
816,240
9M09
19.4683,660Rp/Ton
CHANGE (%)9M08Domestic
Revenue/Ton
Striving to maximize value 15
7532
8728
9601
12210
28923328
4001
5355
965
2397
1412
6068
2061
1539 1779
3387
19992234
2849
3867
5091002 1296
17752524
0
2000
4000
6000
8000
10000
12000
2004 2005 2006 2007 2008
Revenue Gross Profit
Operating Profit Ebitda
Net Profit
22%
12%
49%
29%
37%
27%
19%
CAGR(2004 – 2008)
Total Equity
Total assets
Net profit
EBITDA
Operating profit
Gross Profit
Revenue
(Rp billions)
SGG HAS EXPERIENCED ROBUST FINANCIAL GROWTH
Striving to maximize value 16
CONSISTENT REVENUE GROWTH WITH STRONG BALANCE SHEET
Revenue—last 5 years (IDR bn) Sales volumes—last 5 years (mm tons)
Cash balance (IDR bn) Total debt (IDR bn)
5,6146,933
8,163 8,948
11,760
454
599
565653
450
2004 2005 2006 2007 2008
Domestic Sales Export Sales CAGR(04—08)
(0.2%)
20%13.3 14.3 15.0 15.2 16.7
2.3 2.1 1.8 1.81.0
2004 2005 2006 2007 2008
Domestic Export
(19%)
6%
CAGR(04—08)
Note: Sales volumes include cement and clinker volumes
1,929
3,8362,939
9081,424
2004 2005 2006 2007 2008
CAGR (04—08) 43%
180
1,217854
224 159
2004 2005 2006 2007 2008
CAGR (04—08) -38%
* Include short term investment
Striving to maximize value 17
SOLID CREDIT METRICS
Debt/EBITDA EBITDA/interest
27.8x
245.0x
12.7x5.9x
147.6x
2004 2005 2006 2007 2008
Debt/capital
11%12% 9%
66%
46%
2004 2005 2006 2007 2008
Debt/equity
0.19x0.33x
0.02x0.04x 0.02x
2004 2005 2006 2007 2008
0.40x
0.90x
0.05x0.10x 0.06x
2004 2005 2006 2007 2008
Striving to maximize value 18
*) Adjusted to stock split 1:10 on August 2007Source: I/B/E/S mean estimatesNote: Actual numbers are reported number on the year of announcement
SUSTAINABLE EPS GROWTH VS. ANALYST ESTIMATES *)SUSTAINABLE EPS GROWTH VS. ANALYST ESTIMATES *)
SGG HAS BEEN ABLE TO OUTPERFORM MARKET EXPECTATIONS
ACTUAL EPS CAGR (2002-2008): 60%
59 51,474,3
121
215
283
355
26
6386
169
218
299
426
0
50
100
150
200
250
300
350
400
2002 2003 2004 2005 2006 2007 2008 2009
Consensus analyst EPS forecasts Actual EPS(IDR) 485485
Striving to maximize value 19
1,7%2,5% 3,0% 2,7%
5,2%
2004 2005 2006 2007 2008
Average: 3,0% 5,4%
3,1%
5,2%
0%
JSX
Top-
20 *)
INTP SMCB SGG
SGG DIVIDEND YIELD IN THE LAST 5 YEARS 1)SGG DIVIDEND YIELD IN THE LAST 5 YEARS 1)
Note:Based on median of Top-20 JSX listed companies in dividend yield, excluding Semen Gresik for FY2008
2008 DIVIDEND YIELD 1)2008 DIVIDEND YIELD 1)
REGULAR DIVIDENDSREGULAR DIVIDENDS
Key determinants of dividend policy: Historical dividend payout trends Comparison with peers Projected cash-flows available for dividends (after taking into account
potential expansionary capex etc) Analyst and investor expectations Shareholder profile
SGG HAS BEEN ABLE TO DELIVER HIGH DIVIDEND YIELD
1) shares price based on closing price at the end of year
Striving to maximize value 20
AGENDA
I. Indonesia: Country & Cement Industry Profile
II. Corporate Profile
III. Market Update
IV. Financial Update
V. Strategic Projects
VI. Environmental Focus
VII. Future of Indonesia’s Cement Industry
VIII.Appendix
Striving to maximize value 21
INVESTMENT COSTS OF STRATEGIC PROJECTS
US$ 708TOTAL CAPEX
1.6311470Sub Total
1.63201120081142 x 35Sulawesi
CompletedStart
Investment US$ mn/MW
ConstructionInvestment (US$ mn)
Capacity (MW)
Power Plants Location
1195945.0Sub Total
116201120082902.5Sulawesi
122201220083042.5Java
CompletedStart
Investment US$/Tons
ConstructionInvestment (US$ mn)
Capacity (mn tons)
New Plants Location
These strategic projects will ensure sustainability of the Company’s market leadership
Striving to maximize value 22
PROGRESS OF CEMENT & POWER PLANTS PROJECT - Status of OCT 15, 2009
Description Weight Planning Actual
Preparation 1.57% 48.55% 49.28%
Management 3.05% 18.22% 27.94%
Engineering 4.53% 15.38% 28.40%
Procurement 60.19% 15.47% 15.15%
Construction 28.67% 2.44% 0.97%
Commissioning 1.99% 0.00% 0.00%
Total 100 % 12.03% 12.31%
Progress of Tonasa V Cement Plant ProjectDescription Weight Planning Actual
Preparation 3.09% 23.16% 21.84%
Management 3.45% 20.31% 18.17%
Engineering 4.35% 16.08% 14.02%
Procurement 59.97% 10.46% 11.69%
Construction 27.27% 0.95% 0.82%
Commissioning 1.88% 0.00% 0.00%
Total 100 % 8.65% 9.15%
Progress of Tuban IV Cement Plant Project
Description Weight Planning Actual
Preparation 5.00 30.60% 30.00%
Management 5.00 16.00% 16.00%
Engineering 4.00 26.50% 26.50 %
Procurement 45.0 0.08% 0.078%
Construction 35.0 0.00% 0.00%
Commissioning 6.00 0.00% 0.00%
Total 100 3.42% 3.39%
Progress of Power Plant Project - Tonasa 2 x 35 MW
New Power Plant Site Pilling Works - Completed
Striving to maximize value 23
PROJECTION PRODUCTION CAPACITY (Mio Ton)
20.0
24.027.0
11.18.2 8.6 9.0 9.1 9.4 13.2
6.7
6.4
6.3
5.4 5.9 6.35.9
4.14.13.53.5
4.36.5
7.1
2007 2008 2009F 2010F 2011F 2012F 2013F
SG
SP
ST
17.118.0 19.0
19.5
Striving to maximize value 24
Detailed capex schedule (US$ mm)Detailed capex schedule (US$ mm)
Uses of fundsUses of funds
55
30.67
64.82
2 6 5 637 37 41
31
5
68
264
230
27
14
24
66
5
5
68
7
7 7440
222
402383
102
56 57
339 72917
3034
2659 22
10
108
5
2008 2009 2010 2011 2012 2013 2014
HCMP & ICTMandatoryPower plants (under review)Capacity exp.OthersKeep PerformanceEfficiency ImprovementDe-bottlenecking
23
7
CAPEX PLANNING PROFILE (2008 – 2014)
25
5%4%8%30%32%18%3%%
2014201320122011201020092008
Key Items (Capex) (US$ Mio)Capacity Expansion 594
Power Plants 114
De-bottlenecking 106
Human Capital Master Plan & ICT 40
Others 101
Keep Performance 227
Efficiency Improvement 35
Mandatory 45
Total Capex 1,262
Striving to maximize value 25
AGENDA
I. Indonesia: Country & Cement Industry Profile
II. Corporate Profile
III. Market Update
IV. Financial Update
V. Strategic Projects
VI. Environmental Focus
VII. Future of Indonesia’s Cement Industry
VIII.Appendix
Striving to maximize value 26
Generate revenue
Emissions reduction programs
Carbon credits trading
Environmental ManagementReduce operating expense
Energy efficiency programs
Technology-driven cost savings
Promote company image
Domestic capacity expansion
Investment communities
SGG IS FOCUSED ON DRIVING VALUE THROUGH AN ENVIRONMENTALLY-SUSTAINABLE BUSINESS PLATFORM
Striving to maximize value 27
CLEAN DEVELOPMENT MECHANISM (CDM) PROJECT
Alternative Fuel
1. Alternative Fuel
2. Waste Heat Recovery
The use of alternative fuel is the company’strategy plan in order to improve non renewable energy efficiency as well as consume friendly environmental energy.
Waste Heat Recovery GenerationUtilize exhaust (waste gas) from pre-heater & cooler to produce electricity (power plant).
Striving to maximize value 28
CDM ROAD MAP
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ALTERNATIVE FUEL ROAD MAP (SEMEN GRESIK ONLY)
2009 2012
Alternative fuel 1% Mapping alternative
Fuel source Install feeding facilities Procurement and
operations Trial
Alternative fuel 2,5% Agriculture & industry
waste 5%Note : Facility for solid alternative fuel, 1 unit at Tuban-3
alternative fuel 7,5% Agriculture & Industry
waste 7,5%
2010 2011
alternative fuel 5% Agriculture &
Industry waste 5% Add facilities at
Tuban-1/2
2013
alternative fuel 10% Agriculture & Industry
waste 10%
Note:CER value per ton: €10 (Rp14,500/€1)
Note:CER value per ton: €10 (Rp14,500/€1)
Alternative Fuel Percentage
Biomass ConsumptionBiomass Consumption
Decrease on Coal Consumption
CER Resulted
CER Gained
Striving to maximize value 30
AGENDA
I. Indonesia: Country & Cement Industry Profile
II. Corporate Profile
III. Market Update
IV. Financial Update
V. Strategic Projects
VI. Environmental Focus
VII. Future of Indonesia’s Cement Industry
VIII.Appendix
Striving to maximize value 31
Pessimist : 5.5%
Moderate : 6.5%
Optimist : 7.0%
Annual Growth Rates
NATIONAL DEMAND IS FORECAST TO RISE TO 142mm TONS BY 2030
*) Source: The Study of Institut Teknologi 10 Nopember – Surabaya (ITS)
Indonesia Cement Market Growth 2010-2030
40 43 46 49 52 56 59 63 6772 76
8186
9298
104111
118125
133142
117
163
0
20
40
60
80
100
120
140
160
180
2010 2015 2020 2025 2030
Pessimist
Moderate
Optimist
Striving to maximize value 32
Malaysia
Timor Leste
MalaysiaMalaysia
Timor LesteTimor LesteTimor Leste
21 50
10 39
3 20 3 16
1 7
2 11
KalimantanSulawesi
BaliJawa
Sumatra
Indonesia Timur
2010
2030
Key
Figures are in MT
DEMAND IN 2010-2030 WILL INCREASINGLY SHIFT TO THE OUTER ISLANDS
*) Source: The Study of Institut Teknologi 10 Nopember – Surabaya (ITS)
SGG with its wide geographical presence is well positioned to tap the growththroughout Indonesia
Striving to maximize value 33
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 (2008)
TelukBayur
Sumatera
Kalimantan
SulawesiMaluku
Papua
LombokBaliJava
Batam
Ciwandan
Tanjung Priok Jakarta
Samarinda
Banjarmasin
Palu
Bitung
Ambon
Makassar
Biringkasi
BaliTabananDenpasarSingarajan
DI YogyakartaLempuyangan
Janti
Central JavaTegal
PurwokertoKudus
MagelangSolo/PalurAlas TuwoMojopahit
Sayung
West JavaSerang
TangerangBogor
CibitungBandung
Tasik MalayaCirebon
Narogong
Belawan
Singapore
Kuala Lumpur
Tuban
Surabaya
Cement Plant
Packing Plant
Port
Warehouse
East JavaMargomulyo
Tanjung WangiBangkalanSwabina
Aleh
Pelabuhan Tuban
Pelabuhan Gresik
Installed Cap.:5.9 mn tons
Installed Cap.:8.6 mn tons
Installed Cap.:3.5 mn tons
Striving to maximize value 34
SGG LONG TERM STRATEGIC FOCUS
SGGSGG
THE OVERALL
STRATEGY
COMBINES
6 CRITICAL
ELEMENTS
THE OVERALL
STRATEGY
COMBINES
66 CRITICAL
ELEMENTS
1. Undertake Capacity Growth
2. Manage Energy Security
3. Enhance Company Image
4. Move Closer To The Customer
5. Enable Corporate Growth
6. Manage Key Risks
1. Undertake Capacity Growth
2. Manage Energy Security
3. Enhance Company Image
4. Move Closer To The Customer
5. Enable Corporate Growth
6. Manage Key Risks
Striving to maximize value 35
Strong balance sheet provides flexibility to explore several
strategic options that enable sustainable
growth with relatively lower risk
Strong operating performance, growth
and margins
Efficient operations with high asset
utilization
Further internal value being unlocked
Increasing synergies between the
Company’s operating units
Market leader in a high growth
country & industry
Clear strategy to achieve same
Scalable production & distribution
capabilities across all major islands
Ready to tap country-wide
growth
SGG : VALUE PROPOSITION
Enables the Company to address the requirements of Shareholders, Environment and Community.
Shareholders benefit from a combination of current yield in terms of good dividends and prospects of future capital growth at acceptable risk
Striving to maximize value 36
AGENDA
I. Indonesia: Country & Cement Industry Profile
II. Corporate Profile
III. Market Update
IV. Financial Update
V. Strategic Projects
VI. Environmental Focus
VII. Future of Indonesia’s Cement Industry
VIII.Appendix
Striving to maximize value 37
Source: Indonesian Cement Association & BPS Statistic (Industrial Origin – *Construction Growth – **GDP Growth – 1H 2009)
INDONESIA HAS EXPERIENCED SOLID ECONOMIC AND DOMESTIC CEMENT CONSUMPTION GROWTH
Growth:
1.1%
Growth:
9.7%
Growth:
4.2%
Growth:
1.8%
Growth:
6.6%
Growth:
5.8%
Growth:
19.4%
Construction growth (RHS)Domestic consumption (LHS)
GDP growth % (RHS)
(mio tons)
DOMESTIC CEMENT CONSUMPTION, CEMENT GROWTH, GDP GROWTH AND CONSTRUCTION GROWTH IN INDONESIA
34.0
27.2 27.530.2 31.5 32.1 34.2
38.1
5.6%4.7%
5.1%
5.4%4.4%
6.3%
6.1% **4.40%
11.5%
4.2%
9.7%
-1.1%6.6%
1.8%1.1%
5.8% *6.30%
4.1%
5.7% 8.2% 7.3% 9.0% 8.3% 7.3%
-10.0
0.0
10.0
20.0
30.0
40.0
2002 2003 2004 2005 2006 2007 2008 11M2009 -10.0%
0.0%
10.0%
20.0%
30.0%
40.0%Cement growth (RHS)
Striving to maximize value 38
Main Office:Main Building of Semen Gresik
Jln. Veteran Gresik 61122 – IndonesiaPhone: (62-31) 3981731 -2, 3981745
Fax: (62-31) 3983209, 3972264
Representative Office:Graha Irama Building, 11th Floor,Jln. HR Rasuna Said, Kuningan, Jakarta 12950 – IndonesiaPhone: (62-21) 5261174 – 5Fax : (62-21) 5261176
www.semengresik.com
THANK YOUTHANK YOUIMPORTANT NOTICE
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