ANALYST MEETING 03 AUG 2012 final

(1)

Corporat e Present at ion

AUGUST 03, 2012


(2)

1

1. SMGR

22. 5 mn t on

- Semen Padang :

6. 4 mn t on

- Semen Gresik :

11. 4 mn t on

- Semen Tonasa :

4. 7 mn t on

2. Semen Andal as

2)

1. 6 mn t on

3. Semen Bat uraj a

1. 3 mn t on

4. Indocement TP

18. 6 mn t on

5. Hol cim Indonesia

8. 5 mn t on

6. Semen Bosowa

3. 8 mn t on

7. Semen Kupang

0. 5 mn t on

TOTAL

56. 8 mn ton

CEMENT INDUSTRY AT A GLANCE

Design Capacity

: 54. 4 mio tons

56. 8 mio tons

65. 1 mio tons

Production Capacity

: 51. 0 mio tons

55. 0 mio tons

61. 5 mio tons

Domestic Growth

: 17. 7%

14. 0%

8. 0%

Domestic Utilization

: 94%

99%

96%

Total Utilization

: 96%

100%

97%

Supply

Domestic

: 48. 0 mio tons

54. 7 mio tons

59. 0 mio tons

Export

: 1. 2 mio tons

0. 3 mio tons

0. 5 mio tons

Import

: 1. 8 mio tons

2)

2. 0 mio tons

3)

1. 0 mio tons

3)

1) Based on t he Company’ s f orecast

2) Import ed cement by PT Semen Andal as (1. 0 mio t on) and cl inker by Bosawa and SMGR

3) Import ed cement & cl inker

Singapore Kuala

Lum pur

SMGR

2

2

1

1

3

3

4

4

5

5

1

1

6

6

7

7

THE PLAYERS and CAPACITY (2012

)

SMGR: 22. 5 mio ton

(38% of Industry Cap. )

CEMENT INDUSTRY

2011

2012F

1)

2013F

1)


(3)

DOMESTIC CEMENT CONSUMPTION 1H-2012

DESCRIPTION

1H-12

1H

CHANGE (%)

DOMESTIC

10. 3

9. 2

12. 2

- GRESIK *)

- PADANG

- TONASA

5. 15

3. 14

2. 00

4. 70

2. 73

1. 74

9. 7

15. 1

14. 7

EXPORT

0. 33

0, 61

(45. 2)

GRAND TOTAL

10. 32

9. 23

11. 9

1H-2012 - SMGR Sales Volume

(million tons)

1H-2012 – Domest ic Consumpt ion

(million tons)

Sour ce: Indonesi a Cement Associ at i on

AREA

1H-12

1H-11

Change (%)

Industry Sales Type (mio tons)

1H-12

1H-11

YoY Change

Bag

21. 0 (81%)

18. 4 (82%)

14. 1%

Bul k

4. 8 (19%)

4. 0 (18%)

20. 0%

*) i ncl udi ng 458, 235

t ons cement pr oduct i on f r om Tuban

IV dur i ng commi ssi oni ng per i od of Feb - June 2012

Jakart a

2, 484, 790

2, 278, 949

9. 0

Bant en

1, 545, 781

1, 303, 407

18. 6

West Java

3, 742, 211

3, 290, 211

13. 7

Cent ral Java

2, 784, 663

2, 415, 427

15. 3

Yogyakart a

381, 536

351, 311

8. 6

East Java

3, 221, 031

2, 717, 672

18. 5

Tot al Java

14, 160, 011

12, 356, 977

14. 6

Sumat era

5, 821, 758

5, 333, 487

9. 2

Kalimant an

1, 981, 115

1, 590, 774

24. 5

Sulawesi

1, 893, 028

1, 579, 691

19. 9

Nusa Tenggara

1, 451, 110

1, 220, 278

18. 9

Maluku & Papua

584, 503

412, 203

41. 8

TOTAL INDONESIA

25, 891, 526

22, 492, 410

15. 1

Export Cement

47, 508

154, 582

(69. 3)

Export Clinker

100, 416

442, 271

(77. 3)

Tot al Export

147, 924

596, 853

(75. 3)


(4)

FINANCIAL SUMMARY: 1H-2012 RESULTS

EBITDA (Rp bil l ion)

NET INCOME (Rp bil l ion)

NET INCOME (Rp bil l ion)

EBITDA Margin (%)

EBITDA Margin (%)

1H-08

1H-09

1H-10

1H-11

1H-12

31. 3

31. 5

34. 1

33. 2

33. 4

NET INCOME Margin (%)

NET INCOME Margin (%)

1H-08

1H-09

1H-10

1H-11

1H-12

19. 9

22. 4

24. 4

24. 6

24. 3

Description (Rpbn)

1H2011

1H2012

Change (%)

Revenue

7. 606

8, 658

13. 8

Cost of revenue

4, 110

4, 696

14. 2

Gross profit

3, 496

3, 961

13. 3

Operating expenses

1, 223

1, 364

11. 5

Operating income

2, 301

2, 644

14. 8

Ebitda

2, 528

2, 894

14. 4

Net Income

1, 873

2, 103

12. 3

EPS (full amount)

316

355

12. 3

2894

2528

2.273

2.129

1.782

0

500

1.000

1.500

2.000

2.500

3.000

3.500

1H-08

1H-09

1H-10

1H-11

1H-12

2103 1.136 1.514 1.627 1873

0

425

850

1.275

1.700

2.125

1H-08

1H-09

1H-10

1H-11

1H-12

Ratio (%)

Formula

1H

2011

1H

2012

Ebitda margin

Ebitda / Revenue

33.2

33.4

Interest coverage (x)

Ebitda / Interest expense

201.1

237.0

Cost ratio

[COGS + Opex] / Revenue

70,1

70,0

Total debt to equity *)

Total debt / Total equity

9.1

15.8

Total debt to asset *)

Total debt / Total asset

6.3

10.44


(5)

PRODUCTION PERFORMANCE

Unit

Cement Product ion

Growt h (%)

Semen Gresik

Semen Padang

Semen Tonasa

5, 143, 351

3, 254, 276

2, 030, 194

11. 5

13. 5

14. 4

TOTAL

10, 427, 821

12. 7

1H-2012

PROGNOSES 2H-2012

Unit

Prognoses Product ion

Growt h (%)

Semen Gresik

Semen Padang

Semen Tonasa

6, 407, 300

3, 292, 850

2, 574, 159

23. 7

3. 0

22. 9

TOTAL

12, 274, 309

16. 3

TARGET 2013

Unit

Cement Product ion

Semen Gresik

Semen Padang

Semen Tonasa

12, 800, 000

6, 500, 000

6, 300, 000


(6)

5

5

Cement Finish Grinding

Preparation Bored Pile

Preheater Tonasa V

Jetty Extension Area

T

u

b

a

n

T

u

b

a

n

T

o

n

a

sa

T

o

n

a

sa

T

o

n

a

sa

T

o

n

a

sa

New Pow er Plant Area

CEMENT PLANTS & POWER PLANT PROJECTS

These st rat egic proj ect s wil l ensure sust ainabil it y of

t he Company’ s market l eadership

Preheater Tuban IV

Blending Silo Tonasa V

New Plants

Location

Capacity

(mn tons)

Investment

(US$ mn)

Construction

Start

Completed

Tuban IV

3. 0

355

2009

Jun 2012

Tonasa V

3. 0

315

2009

Sep 2012

Sumat era

3. 0

352

2012

Q4-2015

Java

3. 0

403

2012

Q2-2016

Sub Total

12. 0

1, 425

Power Plants

Location

Capacity

(MW)

Investment

(US$ mn)

Construction

Start

Completed

Sul awesi

2 x 35

114

2010

May 2013


(7)

6

Progress of Tonasa V Cement Plant Proj ect

Capacit y: 3. 0 mio t ons of cement

Est imat ed Invest ment cost : USD315 million

Proj ect complet ion: 98%

Some main equipment s such as Cement

Grinding and Packaging (Packer) has been

operat ed (commissioning) since May 2012

Schedule of complet ion: Sep 2012

Progress of Tuban IV Cement Plant Proj ect

Capacit y: 3. 0 mio t ons of cement

Est imat ed Invest ment cost : USD355 million

Complet ed

Fire on: April 2012

Commissioning periode: Feb - June 2012

Commercial Product ion: July 2012

Some main equipment s such as Cement Grinding

and Packaging (Packer) has been operat ed

(commissioning) since January 2012

Preheater Tonasa V

Preheater Tuban IV

PROGRESS OF CEMENT & POWER PLANT PROJECTS – June 30, 2012

Progress of Power Plant Proj ect - Tonasa

Capacit y: 2 x 35 MW

Est imat ed Invest ment cost : USD114 million

Proj ect complet ion: 89%


(8)

DESIGN CAPACITY (Mio Ton)

7

Existing

+

Upgrading

New

Capacity

(T

o

n

s

e

m

e

n

)

27,3 jt

30,3 jt

20,0 jt

22,5 jt

25,9 jt


(9)

8

CAPEX PLANNING PROFILE (2012 – 2016)

Uses of f unds

Det ailed capex schedule (US$ mm)

404

556

567

153

84

116

113

110

122

127

2012

2013

2014

2015

2016

St rat egic

Non St rat egic

STRATEGIC

Capacit y Expansion

1, 008

Dist ribut ion Facil it y

337

Power Pl ant s

31

De-bot t l enecking

139

Energy Conservat ion

168

Ready Mix Business

22

Human Capit al Mast er Pl an & ICT

14

Ot hers

48

NON STRATEGIC

Keep Perf ormance

496

Ef f iciency Improvement

44

Mandat ory

48


(10)

9

9

Main Office:

Main Building of Semen Gresik

Jln. Veteran Gresik 61122 –

Indonesia

Phone: (62-31) 3981731 -2, 3981745

Fax: (62-31) 3983209, 3972264

Representative Office:

Gedung The East, 18

th

Floor,

Jln. Lingkar Mega Kuningan Kav. E3.2 No. 1,

Jakarta 12950 – Indonesia

Phone : (62-21) 5261174 – 5

Fax

: (62-21) 5261176

www.semengresik.com

THANK YOU

THANK YOU

IMPORTANT NOTICE

THIS PRESENTATION IS NOT AND DOES NOT CONSTITUTE OR FORM PART OF, AND IS NOT MADE IN CONNECTION WITH, ANY OFFER FOR SALE OR SUBSCRIPTION OF OR SOLICITATION, RECOMMENDATION OR INVITATION OF ANY OFFER TO BUY OR SUBSCRIBE FOR ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT, COMMITMENT OR INVESTMENT DECISION WHATSOEVER.

THE SLIDES USED IN THIS PRESENTATION ARE STRICTLY CONFIDENTIAL AND HAVE BEEN PREPARED AS A SUPPORT FOR ORAL DISCUSSIONS ONLY. THE INFORMATION CONTAINED IN THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER PERSON, IN WHOLE OR IN PART.

This presentation includes forward-looking statements, which are based on current expectations and forecast about future events. Such statements involve known / unknown risks uncertainties and other factors, which could cause actual results to differ materially from historical results or those anticipated. Such factors include, among others:

economic, social and political conditions in Indonesia, and the impact such conditions have on construction and infrastructure spending in Indonesia;

the effects of competition;

the effects of changes in laws, regulations, taxation or accounting standards or practices;

acquisitions, divestitures and various business opportunities that we may pursue;

changes or volatility in inflation, interest rates and foreign exchange rates;

accidents, natural disasters or outbreaks of infectious diseases, such as avian influenza, in our markets;

labor unrest or other similar situations; and

the outcome of pending or threatened litigation.

We can give no assurance that our expectations will be attained.

DISCLAIMER

The information contained in this report has been taken from sources which we deem reliable. However, none of PT Semen Gresik (Persero) Tbk and/or its affiliated companies and/or their respective employees and/or agents make any representation or warranty (express or implied) or accepts any responsibility or liability as to, or in relation to, the accuracy or completeness of the information and opinions contained in this report or as to any information contained in this report or any other such information or opinions remaining unchanged after the issue thereof.

We expressly disclaim any responsibility or liability (express or implied) of PT Semen Gresik (Persero) Tbk, its affiliated companies and their respective employees and agents whatsoever and howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither PT Semen Gresik (Persero) Tbk, its affiliated companies or their respective employees or agents accepts liability for any errors, omission or mis-statements, negligent or otherwise, in the report and any liability in respect of the report or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expresses disclaimed.


(1)

PRODUCTION PERFORMANCE

Unit

Cement Product ion

Growt h (%)

Semen Gresik

Semen Padang

Semen Tonasa

5, 143, 351

3, 254, 276

2, 030, 194

11. 5

13. 5

14. 4

TOTAL

10, 427, 821

12. 7

1H-2012

PROGNOSES 2H-2012

Unit

Prognoses Product ion

Growt h (%)

Semen Gresik

Semen Padang

Semen Tonasa

6, 407, 300

3, 292, 850

2, 574, 159

23. 7

3. 0

22. 9

TOTAL

12, 274, 309

16. 3

TARGET 2013

Unit

Cement Product ion

Semen Gresik

Semen Padang

Semen Tonasa

12, 800, 000

6, 500, 000

6, 300, 000


(2)

Cement Finish Grinding

Preparation Bored Pile

Preheater Tonasa V

Jetty Extension Area

T

u

b

a

n

T

u

b

a

n

T

o

n

a

sa

T

o

n

a

sa

T

o

n

a

sa

T

o

n

a

sa

New Pow er Plant Area

CEMENT PLANTS & POWER PLANT PROJECTS

These st rat egic proj ect s wil l ensure sust ainabil it y of

t he Company’ s market l eadership

Preheater Tuban IV

Blending Silo Tonasa V

New Plants

Location

Capacity

(mn tons)

Investment

(US$ mn)

Construction

Start

Completed

Tuban IV

3. 0

355

2009

Jun 2012

Tonasa V

3. 0

315

2009

Sep 2012

Sumat era

3. 0

352

2012

Q4-2015

Java

3. 0

403

2012

Q2-2016

Sub Total

12. 0

1, 425

Power Plants

Location

Capacity

(MW)

Investment

(US$ mn)

Construction

Start

Completed

Sul awesi

2 x 35

114

2010

May 2013


(3)

Progress of Tonasa V Cement Plant Proj ect

Capacit y: 3. 0 mio t ons of cement

Est imat ed Invest ment cost : USD315 million

Proj ect complet ion: 98%

Some main equipment s such as Cement

Grinding and Packaging (Packer) has been

operat ed (commissioning) since May 2012

Schedule of complet ion: Sep 2012

Progress of Tuban IV Cement Plant Proj ect

Capacit y: 3. 0 mio t ons of cement

Est imat ed Invest ment cost : USD355 million

Complet ed

Fire on: April 2012

Commissioning periode: Feb - June 2012

Commercial Product ion: July 2012

Some main equipment s such as Cement Grinding

and Packaging (Packer) has been operat ed

(commissioning) since January 2012

Preheater Tonasa V

Preheater Tuban IV

PROGRESS OF CEMENT & POWER PLANT PROJECTS – June 30, 2012

Progress of Power Plant Proj ect - Tonasa

Capacit y: 2 x 35 MW

Est imat ed Invest ment cost : USD114 million

Proj ect complet ion: 89%


(4)

DESIGN CAPACITY (Mio Ton)

Existing

+

Upgrading

New

Capacity

(T

o

n

s

e

m

e

n

)

27,3 jt

30,3 jt

20,0 jt

22,5 jt

25,9 jt


(5)

CAPEX PLANNING PROFILE (2012 – 2016)

Uses of f unds

Det ailed capex schedule (US$ mm)

404

556

567

153

84

116

113

110

122

127

2012

2013

2014

2015

2016

St rat egic

Non St rat egic

STRATEGIC

Capacit y Expansion

1, 008

Dist ribut ion Facil it y

337

Power Pl ant s

31

De-bot t l enecking

139

Energy Conservat ion

168

Ready Mix Business

22

Human Capit al Mast er Pl an & ICT

14

Ot hers

48

NON STRATEGIC

Keep Perf ormance

496

Ef f iciency Improvement

44

Mandat ory

48


(6)

Main Office:

Main Building of Semen Gresik

Jln. Veteran Gresik 61122 –

Indonesia

Phone: (62-31) 3981731 -2, 3981745

Fax: (62-31) 3983209, 3972264

Representative Office:

Gedung The East, 18

th

Floor,

Jln. Lingkar Mega Kuningan Kav. E3.2 No. 1,

Jakarta 12950 – Indonesia

Phone : (62-21) 5261174 – 5

Fax

: (62-21) 5261176

www.semengresik.com

THANK YOU

THANK YOU

IMPORTANT NOTICE

THIS PRESENTATION IS NOT AND DOES NOT CONSTITUTE OR FORM PART OF, AND IS NOT MADE IN CONNECTION WITH, ANY OFFER FOR SALE OR SUBSCRIPTION OF OR SOLICITATION, RECOMMENDATION OR INVITATION OF ANY OFFER TO BUY OR SUBSCRIBE FOR ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT, COMMITMENT OR INVESTMENT DECISION WHATSOEVER.

THE SLIDES USED IN THIS PRESENTATION ARE STRICTLY CONFIDENTIAL AND HAVE BEEN PREPARED AS A SUPPORT FOR ORAL DISCUSSIONS ONLY. THE INFORMATION CONTAINED IN THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER PERSON, IN WHOLE OR IN PART.

This presentation includes forward-looking statements, which are based on current expectations and forecast about future events. Such statements involve known / unknown risks uncertainties and other factors, which could cause actual results to differ materially from historical results or those anticipated. Such factors include, among others:

economic, social and political conditions in Indonesia, and the impact such conditions have on construction and infrastructure spending in Indonesia;

the effects of competition;

the effects of changes in laws, regulations, taxation or accounting standards or practices;

acquisitions, divestitures and various business opportunities that we may pursue;

changes or volatility in inflation, interest rates and foreign exchange rates;

accidents, natural disasters or outbreaks of infectious diseases, such as avian influenza, in our markets;

labor unrest or other similar situations; and

the outcome of pending or threatened litigation.

We can give no assurance that our expectations will be attained.

DISCLAIMER

The information contained in this report has been taken from sources which we deem reliable. However, none of PT Semen Gresik (Persero) Tbk and/or its affiliated companies and/or their respective employees and/or agents make any representation or warranty (express or implied) or accepts any responsibility or liability as to, or in relation to, the accuracy or completeness of the information and opinions contained in this report or as to any information contained in this report or any other such information or opinions remaining unchanged after the issue thereof.

We expressly disclaim any responsibility or liability (express or implied) of PT Semen Gresik (Persero) Tbk, its affiliated companies and their respective employees and agents whatsoever and howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither PT Semen Gresik (Persero) Tbk, its affiliated companies or their respective employees or agents accepts liability for any errors, omission or mis-statements, negligent or otherwise, in the report and any liability in respect of the report or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expresses disclaimed.