Region Populat ion
Cement Consump-
t ion t on Cement
Consumpt . Per Capit a
kg GDP – US
2009
1. Jawa 136, 563, 142
21, 996, 688 161
2, 801
2. Sumat era 50, 613, 947
9, 690, 931 191
2, 359
3. Sulawesi Maluku
19, 926, 385 3, 421, 522
172 1, 261
4. Kalimant an 13, 772, 543
2, 833, 018 206
4, 327
5. Bali Nusa Tenggara
13, 067, 599 2, 326, 931
178 1, 117
6. Papua 3, 612, 854
513, 287 142
3, 269
Tot al Indonesia 237, 556, 470
40, 782,377 172
2, 350
MARKET BY GEOGRAPHY CEMENT CONSUMPTION PER CAPITA FY2010
Papua Bali N T
Kalimantan
Sulawesi
Populat ion Dist ribut ion Populat ion Dist ribut ion
Sumatera 21.3
Java 57.5.
8.4 5.8
5.5 1.5
4
REGION
MARKET SHARE SMGR
INTP SMCB
BSWA ANDLS BTRJA
1. JAVA 38. 2
40. 1 19. 3
2. 3 -
0. 04 2. SUMATERA
44. 2 15. 8
9. 3 2. 3
16. 6 11. 9
3. SULAWESI 61. 1
15. 5 0. 8
22. 7 -
- 4. KALIMANTAN
54. 9 26. 4
10. 1 8. 6
- -
5. NUSA TENGGR. 36. 9
39. 6 4. 2
19. 3 -
- 6. EASTERN IND.
70. 9 15. 4
0. 9 12. 8
- -
TOTAL INDONESIA
43. 2 30. 9
13. 6 5. 5
4. 0 2. 9
SG SP
ST
1 2
3 4
5 6
23.9
7.4 7.1
5.9 2.2
Java
53.5.
Sumatera
Cement Dist ribut ion Cement Dist ribut ion
DOMESTIC MARKET CONSUMPTION
Retail resident ial sect or is t he largest consumer of cement in Indonesia
5
Bag
80
Bulk 20
Key Drivers of Domestic cement demand:
• National Economic Growth
• Favorable Interest Rat e Environment
• Infrastructure Expansion
• Per Capita Consumption increase from current low levels
•
Ready-mix inf rast ruct ure:
±
50
•
Fabricat or pre-cast , f iber cement , cement based indust ry:
±
45
•
Proj ect s mort ar , render:
±
5
•
Ready-mix inf rast ruct ure:
±
50
•
Fabricat or pre-cast , f iber cement , cement based indust ry:
±
45
•
Proj ect s mort ar , render:
±
5
•
Housing:
±
90
•
Cement based indust ry:
±
10
•
Housing:
±
90
•
Cement based indust ry:
±
10
± ±
Source: Int ernal Research
6
COMPANY PROFILE
SMGR Corporat e Present at ion March 2011
7
1957 : Inaugurat ion of Gresik I, inst al l ed capacit y of 250, 000 t on cement per annum
1991 : Init ial Publ ic Of f ering, Market Cap IDR0. 63t n, resul t ing sharehol ding st ruct ure
post IPO:
●
Government of Republ ic of Indonesia: 73
●
Publ ic: 27
1995 : Acquisit ion of PT Semen Padang Persero and PT Semen Tonasa Persero
1998 : Cemex became a st rat egic part ner, Market Cap IDR4. 9t n
2006 : Bl ue Val l ey Hol dings bought Cemex’ s 24. 9 st ake in SMGR, Market Cap IDR21. 5t n
2010 : In March 31, Bl ue Val l ey Holdings sold 23. 65 of it s st ake ownership in SMGR, Market Cap per March 31, 2010 IDR43. 3t n
2011 : Target ed t ot al inst al l ed capacit y of 20. 50mm t ons, Market Cap per Dec. 30, 2010
IDR56. 1t n
Publ ic 48. 99
The Government of t he Republ ic 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 HISTORY BRIEF HISTORY
OWNERSHIP STRUCTURE
1
OWNERSHIP STRUCTURE
1
SMGR IS THE 1 CEMENT COMPANY IN INDONESIA
¹ As of Apri l 09, 2010
0,0 5,0
10,0 15,0
20,0
19 57
19 80
19 80
19 84
19 85
19 86
19 94
19 96
19 97
19 98
20 06
20 07
20 08
20 10
SMGR CAPACITY BUILD-OUT MM TONS SMGR CAPACITY BUILD-OUT MM TONS
Five subsidiaries Non-cement producers
8 8
Distribution warehouses in all areas of Java, Bali, Sumatra, Kalimantan, Sulawesi and Irian
16 large packing plants
Nationwide distribution network
Operate 4 special sea ports: Padang, Tuban, Gresik, Biringkassi
Total installed cap. EoY 2009: 18.0 mn tons and EoY 2010: 19.0 mn tons
2011
T eluk Bayur
Sumat era Kalimant an
Sulawesi Maluku
Papua
Lombok Bali
Ja va
Bat am
Ciwandan T anj ung Priok
Jakart a
Samarinda
Banj armasin Palu
Bit ung
Ambon Makassar
Biringkasi
Bali T abanan
Denpasar Singaraj an
DI Yogyakart a Lempuyangan
Jant i
Cent ral Java T egal
Purwokert o Kudus
Magelang Solo Palur
Alas T uwo Moj opahit
Sayung
West Java Serang
T angerang Bogor
Cibit ung Bandung
T asik Malaya Cirebon
Narogong
Belawan
Singapore Kuala Lumpur
T uban
Surabaya
Cement Plant Packing Plant
Port War ehouse
East Java Margomulyo
T anj ung Wangi Bangkalan
Swabina
Aleh
Pelabuhan T uban Pelabuhan Gresik
Installed Cap.: 6.1 mn tons
Installed Cap.: 10.0 mn tons
Installed Cap.: 4.1 mn tons
9 9
SMGR LONG TERM STRATEGIC FOCUS
SMGR SMGR
THE OVERALL
STRATEGY
COMBINES
6
CRITICAL
ELEMENTS THE OVERALL
STRATEGY
COMBINES
6 6
CRITICAL
ELEMENTS 1. Undert ake Capacit y Growt h
2. Manage Energy Securit y
3. Enhance Company Image
4. Move Closer To The Cust omer
5. Enable Corporat e Growt h
6. Manage Key Risks 1. Undert ake Capacit y Growt h
2. Manage Energy Securit y
3. Enhance Company Image
4. Move Closer To The Cust omer
5. Enable Corporat e Growt h
6. Manage Key Risks
10 10
10 10
9.601 12.210
14. 388 14.228
4.001 5. 355
6.774 6.738
1.779 2.234
8. 728
3.328 4.343
4. 434 3.387
2.397 4.859
4. 773 3.867
2.849 3. 490
3.326 2.524
1.775 1.296
2.000 4.000
6.000 8.000
10.000 12.000
14.000 16.000
2006 2007
2008 2009
2010 F Re ve nue
Gross Profit Ope rating Profit
Ebitda Ne t Profit
Rp billions CAGR
2006 – 2010
Revenue
13
Gross Profit
19
Operating Income
26
EBITDA
21
Net Income
28
Total assets
19
Total Equity
21
SGG HAS EXPERIENCED ROBUST FINANCIAL GROWTH
2010 F
11 11
STRONG BALANCE SHEET AND RETURNS
Cash balance IDR bn Total debt IDR bn
3. 773 2. 939
5. 282 3. 836
1. 424 1. 929
2005 2006
2007 2008
2009 2010F
CAGR 05—0
9 39
621 151
854
224 159
180
2005 2006
2007 2008
2009 2010F
CAGR 05 —09 -35
Include short t erm invest ment
Debt EBITDA
0,13x 0,40x
0,05x 0,10x
0,06x 0.03x
2005 2006
2007 2008
2009 2010
F
Return on Assets
17,3 13,7
25,7 20,8
23,8 23.0
2005 2006
2007 2008
2009 2010F
3, 0x
The pr oj ect ed adj ust ed debt EBITDA of 3. 0x and EBITDA Int erest of 3-4x t o m ai nt ai n rat i ng l evel f rom Moody’ s Invest ors Servi ce.
12 12
2. 5 3. 0
2. 7 5. 2
4. 1
2005 2006
2007 2008
2009
Average: 3, 5
1.8 1.1
4.1
JSX Top-20
I NTP SMCB
SMGR
SMGR DIVIDEND YIELD IN THE LAST 5 YEARS
1
SMGR DIVIDEND YIELD IN THE LAST 5 YEARS
1
: Based on
medi an of Top-20
Bi ggest Market
Capi t al i zat i o n JSX l i st ed
compani es i n di vi dend
yi el d, excl udi ng
Semen Gresi k f or FY2009
2009 DIVIDEND YIELD
1
2009 DIVIDEND YIELD
1
REGULAR DIVIDENDS REGULAR DIVIDENDS
Key determinants of dividend policy:
•
Historical dividend payout trends
•
Comparison with peers
•
Proj ected cash-flows available for dividends after taking into account potential expansionary capex etc
•
Analyst and investor expectations
•
Shareholder profile
REGULAR DIVIDEND PAYMENTS WITH ATTRACTIVE YIELD
1
shares pri ce based on
cl osi ng pri ce at t he end of year
13
3980 5160 5300
5600 5000
4000 3425
4175 3725
4900 6300
7550 7300
8750 9250
8700 9.900 9.800
9.200 9.450
7.750 8.400
1805,521830,92 2139,28
2359,21 2745,83
2447,32349,1 1832,5
1355,41434,07 2020,78
2467,592534,35 2777,3
2913,68 3.069,28
3.081,88 3.501,30
3.635,32 3.531,21
3.703,51 3.409,17
3.416,76
3630
1000 2000
3000 4000
5000 6000
7000 8000
9000 10000
28 -D
es -0
6 30
-M ar
-0 7
29 -J
un -0
7 28
-S ep
-0 7
28 -D
es -0
7 31
-M ar
-0 8
30 -J
un -0
8 29
-S ep
-0 8
30 -D
es -0
8 31
-M ar
-0 9
30 -J
un -0
9 30
-S ep
-0 9
30 -D
es -0
9 31
-M ar
-1 30
-J un
-1 30
-J ul
-1 31
-A gu
st -1
30 -S
ep -1
29 -O
kt -1
30 -N
op -1
30 -D
es -1
31 -J
an -1
1 14
-F eb
-1 1
SMGR JCI
SMGR STOCK PRICE HAS CONTINUED TO OUTPERFORM JCI
Shar es st ock spl i t 1: 10
Shar es st ock spl i t 1: 10
US Sub-pr i me mor t gage cr i si s
US Sub-pr i me mor t gage cr i si s
Shar es buy back Shar es buy back
Bl ue Val l ey’ s di vest ment
Bl ue Val l ey’ s di vest ment
Hi gh i nf l at i on f ear Hi gh i nf l at i on f ear
No car t el concl usi on by
KPPU No car t el
concl usi on by KPPU
Market Cap: Rp21. 5T
Market Cap: Rp51. 3T
14
MARKET UPDATE
SMGR Corporat e Present at ion March 2011
MARKET UPDATE Cement Sales FY2010 and Jan. 2011
DESCRIPTION 2010
2009 CHANGE
DOMESTIC 17, 64
17, 82 1. 0
EXPORT 0. 29
0, 60 52. 9
GRAND TOTAL 17, 93
18, 43 2. 8
