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Company History
PT Indocement Tunggal Prakarsa Tbk. (INTP) is one of Indonesias major producers of quality
cement and specialty cement products. INTP was established in 1985 and has integrated cement
operations. Since 2005, INTP has diversified its product range by introducing Portland
Composite Cement (PCC) in the market.
In 2001, the German based HeidelbergCement Group became the majority shareholder of
INTP. Since that time, a key strategic focus for INTP has been to reduce debt. In the first quarter
of 2009 INTP moved to a net cash position. On October 15, 2009, INTP received a Gold Rating
from the Environmental Performance Rating Program (PROPER), 2008-2009. Additionally,
INTP also garnered a Green Rating from the program. PROPER is an initiative of the Indonesian
Environment Ministry that encourages companies to implement sustainable environmentalmanagement. INTP is the second company to receive a Gold Rating since the program officially
began in 2002.
INTPs shares are listed on the Indonesia Stock Exchange. As of year-end 2009 the
Company maintained a market capitalization of IDR50.433 billion with 3.681.231.699 shares.
The Company employed 5.858 personnel as of December 31, 2009.
Facilities and production1. Facilities
INTP currently operates 12 plants, nine of which are located in Citeureup, Bogor, West
Java with a total cement capacity of 11.9 million tons per year (approximately); two in
Palimanan, Cirebon, West Java with a cement capacity of 2.6 million tons per year
(approximately); and one in Tarjun, Kotabaru, South Kalimantan. INTP also applied an
online production monitoring system. The system provides hourly updated monitoring
and viewing of cement operations, from raw mill to packaging, which can be accessed
directly by the Head Office. The system also provides an hourly update of stock
information of all cement plants and cement terminals. INTP also operate power
generation facilities at the Citeureup and Tarjun sites that provide all their electricity
requirements.
2. Production
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INTPs production is separated into 5 stage:
i.QuarryingLimestone, clay and silica sand are quarried by drilling and blasting and then brought to
the crushing plants located adjacent to the quarries. Crushed limestone, clay and silica
sand are then delivered by means of conveyor belt system or by truck.
ii.Drying and Raw GrindingRaw materials are dried in rotary dryers using waste heat from the kiln. The moisture
content is greatly reduced to improve quality control and handling. The dried materials
are mixed and fed to raw grinding mills to produce "raw meal". The blended raw meal is
delivered into storage silos.
iii.Kiln Burning and CoolingBlended raw meal is transported by pneumatic conveyors to the kiln's suspension pre-
heaters where it is preheated to achieve a high degree of calcinations (oxidization of the
calcium carbonate) before the raw meal enters the rotary kiln. Hot clinker from the
rotary kiln is discharged onto coolers where it is quenched and cooled by fresh air from
high capacity fans. Cooled clinker is delivered to clinker silos
iv.Finish GrindingFrom clinker silos, the cooled clinker is mixed with gypsum and fed into the grinding
mill to produce cement. The finished cement is then pumped into cement silos.
v.PackingCement is transferred from the storage silos to the packing plant for bag and bulk
loading. Bagging is done by high speed in line and rotary packing machines. Filled bags
are automatically weighed, sealed and loaded onto trucks by conveyor belt.
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Financial Report Overview INTP2009
INTPs consolidated net income in 2009 was IDR2,747 billion. This was a 57.4% increase from
the IDR1,746 billion recorded in 2008. Strong cash flow generation over the course of 2009
allowed INTP to increase the cash and cash equivalent position reached in the first quarter to
IDR2,623 billion by year-end. In addition to providing the Company with ample reserves to
finance future capital expenditure investment, this achievement has also substantially reduced
INTPs year-on-year interest expenses.
Although overall sales volume was down by 8.2% in 2009, net consolidated revenuesremained stable at IDR10,576 billion, an 8.1% increase above the IDR9,780 billion recorded in
2008. More importantly, the cost of revenues was down by 5.0%, allowing the Company to
record an increase in gross profit of 26.9%. The Companys domestic sales volume witnessed a
drop of 3.9% from 12.3 million tons in 2008 to 11.8 million tons in 2009. This was mainly due to
the Companys decision to maintain prices, which affected a drop in market share from 31.7% to
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30.2%. Export sales volume dropped 31.1% from 2.3 million tons in 2008 to 1.6 million tons in
2009. International prices for clinker remained very low, particularly in the first half of the year.
This was mainly due to an oversupply in the market due to the downturn in the global economy.
The Company maintained its domestic sales price at the levels reached in 2008. This resulted in a
14.3% increase of average domestic sales price, year-on-year. Net revenues therefore grew by
8.1% to IDR10,576 billion from IDR9,780 billion in 2008.
1. Cost of RevenuesWhile production costs per ton increased by 3.5%, INTPs overall cost of revenues
declined by 5.0% to IDR5,468 billion in 2009 from IDR5,756 billion in 2008. The
decline in cost was due to a number of interrelated factors including:
y Increased plant efficiency;y The decision to operate only the Companys most efficient plants;y The strengthening of the IDR in relation to the USD, over 60% of the Companys
cost are earmarked in in USD equivalents;
y Successful renegotiating of key supply contracts for variable cost contracts;y Strict control of all fixed costs.
Consequently the ratio of cost of revenue to net revenues improved to 51.7% in 2009,
from 58.9% in 2008.
2. ProfitabilityThe Companys gross profits rose by 26.9% from IDR4,025 billion in 2008 to IDR5,108
billion in 2009. In the meantime, gross profit margin advanced from 41.1% in 2008 to
48.3% in 2009. Income from operations expanded noticeably by 50.1% to IDR3,693
billion compared with IDR2,460 billion in the previous year. Accordingly, operating
margins also improved from 25.2% to 34.9%. EBITDA climbed by 39.4% from
IDR3,059 billion to IDR4,263 billion, while net income soared to IDR2,747 billion, a
57.4% increase from IDR1,746 billion posted in 2008. This increase was attributed to
among other factors:
y The growth of operating income as described above;y The decrease in interest expense and other financial charges from IDR124 billion
in 2008 to IDR40 billion in 2009; and
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y The decrease in booked foreign exchange losses from IDR73 billion in 2008 toIDR 8 billion in 2009.
3. Current AssetsCurrent assets rose considerably by 53.3% from IDR3,471 billion in 2008 to IDR5,323
billion in 2009, mainly due to the significant increase in cash and cash equivalent from
IDR790 billion to IDR2,623 billion. Trade receivables also rose from IDR922 billion to
IDR1,345 billion in line with the longer average collection period in 2009. The latter was
mainly due to an increase in sales outside of Java.
4. Non-Current AssetsThere was no significant change in non-current assets, which only increased by 1.8%
from IDR7,815 billion in 2008 to IDR7,953 billion in 2009.
5. Total AssetsTotal assets grew by 17.6% from IDR11,287 billion in 2008 to IDR13,276 billion in
2009.
6. Current LiabilitiesAs the loan from HC Finance B.V. matured in March 2009 and had been fully repaid, the
current maturities of long-term debts decreased from IDR628 billion in 2008 to only
IDR69 billion in 2009. As of 2009, INTP also maintained a one-month revolving loan
facility amounting to USD25 million equivalent to IDR235 billion (consisting ofUSD12.5 million from The Royal Bank of Scotland and USD12.5 million from Standard
Chartered Bank, Jakarta).
Trade payables to third parties rose by 68.9% from IDR289 billion in 2008 to
IDR489 billion in 2009. Taxes payable increased by 2.4% from IDR426 billion to
IDR437 billion, in line with the increase in income before corporate income tax expense.
Hence, current liabilities decreased by 8.9% from IDR1,944 billion in 2008 to IDR1,771
billion.
7. Non-Current LiabilitiesNon-current liabilities dropped slightly by 2.4% from IDR821 billion in 2008 to IDR801
billion in 2009 as the Company experienced a reduction in obligations under finance
lease.
8. Total Liabilities
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Total liabilities declined by 7.0% to IDR2,572 billion in 2009 from IDR2,765 billion in
2008.
9. Shareholders' EquityNet shareholders equity increased by 25.7% from IDR8,500 billion to IDR10,681 billion
primarily as a result of the significant increase in net income.
10.Capital ExpenditureThe Companys total capital expenditure in 2009 amounted to IDR700 billion. The
principal capital investments in 2009 included the following:
y Installation of new cement mills at the Companys Palimanan factory; the newmills will expand INTPs total designed capacity by 1.5 million tons to reach 18.6
million tons. These facilities are expected to come online in the first half of 2010
y In December 2009, INTP subsidiary PT Mandiri Sejahtera Sentra (MSS)expanded its ownership of its aggregate quarry in Purwakarta, West Java to 100%.
MSS has estimated aggregate reserves of about 95 million tons. The acquisition
has enabled INTP to become the market leader for aggregate supply operations
with total estimated reserves of 115 million tons.
y In October 2009, the Company acquired additional 50% shares of PT BahanaIndonor from GB Shipping Investment Limited, a Norwegian company, to fully
control this company by owning 100% share. PT Bahana Indonor is a shippingcompany that has two assets:
a. The MV Tiga Roda, a 10,000 DWT pneumatic cement carrier and
b. The MV Quantum One, a 8,000 tons capacity barge/floating terminal with
bag and bulk discharging capabilities.
The funding for all of the Companys expenditures was from internal cash flow. Risk
associated with foreign exchange exposure was managed internally.
11.DividendsIn 2009, INTP paid a dividend to shareholders of IDR552 billion or IDR150 per share,
which represents 31.6% of net income for the year 2008.
5 Years Financial Performance Overview
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In an instant, we can see from 2005 to 2009 INTPs having an increase in Net Revenue. They
also increased their Gross Profit from 36.12% in 2005 to 48.298% in 2009. In concurrence with
foreign exchange, although INTP have some derivative instrument to reduce the risk and secure
their free cash flow, INTPs still having a problem to manage it. This was proven in their
fluctuative FX Gain (Loss).
In harmony with HeidelbergCement strategic focus, INTP reduced their total liabilities
for each year. In 2009 INTP increased a massive market capitalization because the INTP stock
prices in the capital market increased to more than 200% compared with 2008. This is triggered
by capital expenditures made in 2009 by INTP as a purpose to increase their production capacity,
the increasing of capital expenditures was responded quite well by players in the capital market,
because by having a greater production capacity, INTP opportunity to increase its sales volume
would be even greater. Hopefully it will increase the existing market share. Thus, capital market
participants assess the INTP shares as collectible item.
Triggered by high demand, INTP share is increased. By planning the construction of new
factories in the future that aims to increase its production capacity, it is not impossible INTPs
stock price will rising up, with the forecasting of domestic cement demand growing, triggered
by the increasing in infrastructure development by government and private sector in Indonesia.
So with the increased production capacity accompanied by a high demand in the future, also
higher dividend per share growth will make INTP stock more promising in the future.
In Billion Rp Unless stated otherwise
I/S Overview 2009 G 2008 G 2007 G 2006 G 2005
Net Revenue 10,576Rp 8.14% 9,780Rp 33.53% 7,324Rp 15.79% 6,325Rp 13.11% 5,592Rp
Gross Profit 5,108Rp 26.91% 4,025Rp 45.73% 2,762Rp 28.58% 2,148Rp 6.34% 2,020Rp
Income from Operations 3,693Rp 50.12% 2,460Rp 54.43% 1,593Rp 49.16% 1,068Rp -12.03% 1,214Rp
EBITDA 4,263Rp 39.36% 3,059Rp 41.75% 2,158Rp 36.15% 1,585Rp -5.77% 1,682Rp
FX Gain (Loss) (8)Rp 89.04% (73)Rp -128.13% (32)Rp -165.31% 49Rp -2.00% 50Rp
Net Income 2,747Rp 57.33% 1,746Rp 78.16% 980Rp 65.26% 593Rp -19.86% 740Rp
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Comparison1. StockPrices and Beta Comparison
Stock prices and betafor INTP, Holcim (SMCB) and Semen Gresik (SMGR):
From table above, we can see that SMCB has the highest beta which means that
SMCBs stock prices more sensitive and volatile with the market movement. Beta of
INTP is 1.093, it means if the IHSG changed 1% then INTPs stock price will also
change 1.093%. SMGR has the lowest beta which means that SMGRs stock prices are
not sensitive as SMCBs stock prices.
2. PER and PBV ComparisonPrice Earnings Ratio and Price to Book Value Ratio for INTP, SMCB and SMGR:
In Billion Rp Unless stated otherwise
INTP 2009 G 2008 G 2007 G 2006 G 2005
Operating Cash Flow 3,184Rp 96.66% 1,619Rp 14.99% 1,408Rp 16.08% 1,213Rp -8.25% 1,322Rp
Total Assets 13,276Rp 17.62% 11,287Rp 12.44% 10,038Rp 4.58% 9,598Rp -8.90% 10,536Rp
Total Liabilities 2,572Rp -6.98% 2,765Rp -11.46% 3,123Rp -12.42% 3,566Rp -27.33% 4,907Rp
Net Shareholder's Equity 10,681Rp 25.66% 8,500Rp 23.30% 6,894Rp 14.27% 6,033Rp 7.18% 5,629Rp
Net Working Capital 3,787Rp 61.22% 2,349Rp 59.80% 1,470Rp 19.71% 1,228Rp -27.47% 1,693Rp
Net Borrowing (2,388)Rp -8628.57% 28Rp -97.45% 1,099Rp -50.43% 2,217Rp -27.64% 3,064RpCapital Employed 11,740Rp 15.51% 10,164Rp 9.77% 9,259Rp 1.93% 9,084Rp -9.83% 10,074Rp
Capital Expenditures 700Rp 13.27% 618Rp 33.19% 464Rp 17.77% 394Rp 106.28% 191Rp
Market Capitalization 50,433Rp 197.82% 16,934Rp -43.90% 30,186Rp 42.61% 21,167Rp 61.98% 13,068Rp
Issues Ordinary Shares (Million) 3,681Rp 0.00% 3,681Rp 0.00% 3,681Rp 0.00% 3,681Rp 0.00% 3,681Rp
Per Share Data (IDR)
Basic EPS 746Rp 57.38% 474Rp 78.20% 266Rp 65.22% 161Rp -19.90% 201Rp
DPS 150Rp 275.00% 40Rp 33.33% 30Rp -40.00% 50Rp - -Rp
BV Per Share 2,901Rp 25.64% 2,309Rp 23.28% 1,873Rp 14.28% 1,639Rp 7.19% 1,529Rp
Beta
INTP 1.093
SMGR 1.041
SMCB 1.366
Industry 1.1667
INTP SMCB SMGR
2009 13700 1550 7550
2008 4600 630 4175
2007 8200 1750 5600
2006 5750 670 5600
2005 3550 475 5600
PRICEYear
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3. GP
RVS
coresThese are GPRV scores for INTP, SMCB and SMGR that measures their attractiveness
compare to 146 companies in the Building Materials and Fixtures.
INT # SMCB SMGR
2005 36.12% 13.22% 38.39%
2009 48.30% 37.85% 47.08%
Gr$ % %
Pr$ & ' (
Marg' )
0 1ar
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4. Market Share ComparisonFrom table xxx, we can conclude that SMGR Group has the largest market share in
Indonesia. Exclude from cement quality, SMGR has the First Mover advantage in
Indonesias cement industry and SMGR also have advantage because its owned by
government. With current market share of 29% INTP have an opportunity to increase its
market share in the next year.
The opportunity to increase INTPs market share is inline with the development
of production capacity which is expected operating by 2011. With increased of
production capacity, the opportunity to expand INTP market share will be even greater,
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as one of biggest player in the Indonesian cement industry, cement produced by INTP
also known to have excellent quality. Supported by its massive marketing activities and
currently controlling one-third market share in the domestic market, INTP has a great
opportunity to increase its market share in the future.
But there is also a consideration in where the companies built their production
plant. SMGR built their plant in Java and Sulawesi while INTP built their plant in Java
and Borneo. If in the future Borneo have an advantage in infrastructure development,
INTP will have a competitive advantage over SMGR, vice versa. This scenario could
happen because the trend shows that development in outside Java is starting to growth.
Another consideration is how the companies manage their relationship to logistic cost,
because transportation is one of the factor in deciding the cement price. Concurrence with
logistic cost, INTP already made a vertical integration to their logistic channel by
acquiring a sea transportation company to gain another competitive advantage in the
future.
shareholder value
Cari harga saham tiap perusahaan selama 5 tahun
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PT Dian8
badi Per6
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bsidiaries (Direct)
Subsidiaries
PTSemen Padang
PT Multi @ angunA
ala5 B
PT Mineral 2 ndustri Sukabumi
PT @ aC
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PT Mandiri SejaC
tera
PTPionerbeton 2 ndustri
Subsidiaries (Indirect)
PTLentera8
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man 2 sland Limited ( 2D
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PTA
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D
ement Manufacturing
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Nature of BusinessD
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PT Semen Gresik Tbk
PTSemen Tonasa
PT @ imaSepaja8
badi
PTSebatim @ atamtama
Subsidiaries
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ggregates QuarrB
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E
eady MixD
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D
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2 ndustrial E eal Estate
Cement @ ag Manufacturing
Limestone & Clay Mining
PT Indocement Tunggal Prakasa Tbk
Principal Activity
2 ndonesia
Domicile
Trading
Trass Quarrying
SC
ipping
8
ggregates Quarrying
E eady Mix Concrete Manufacturing
E eady Mix Concrete Manufacturing
2 nvestmentCompany
2 ndonesia
2 ndonesia
2 ndonesia
2 ndonesia
2 ndonesia
2 ndonesia
Cayman 2 slands
2 ndonesia
2
ndonesia
A
resik, East Java
Tuban, East Java
Tuban, East Java
Pangkep, SouthSulawesi
TanjungPriok, Jakarta
@ atam, E iau
2 ndarung, WestSumatera
Location
PT Kawasan 2 ndustriA
resik
PT 2 ndustri Kemasan SemenA
resik
PT United Tractors SemenA
resik
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Masukin ke matrix
Cari PE ratio, ROE, PBV
Cari beta tiap perusahaan
Punya semen apa aja dan perbandingan market sharenya
Pro-forma Analysis
Siapa yang paling unggul di industry semen
Forecast di depan sapa yang lebih unggul
Cari EV/ton perusahaan kalau bisa bandingkan dengan perusahaan di asia tenggara.
GDP Inflasi Exchange rate di BI jadi base rate
Exposure
Biaya Produksi?
Penjualan semen ekspor
Pembelian Asset
Pembelian bahan baku
Pembangunan pabrik?