PT Semen Indonesia Persero Tbk : SIG - Presentasi Korporasi

Optimizing Capabilities to Lead The Market

SMGR Corporate Presentation - March 2024

OPTIMIZING CAPABILITIES TO LEAD THE MARKET

Company Profile & Sector Update	2
SIG Resilient Strategies	8
FY23 Performance Highlights	19

COMPANY

PROFILE & SECTOR UPDATE

Company Profile

Company Milestones

Lines of Business

SIG

#1

Largest cement producer in Indonesia

56.5 MT p.a.

Largest designed cement production capacity in Indonesia

~50.5%

Largest domestic market share

Gold & Green

PROPER rating by Indonesia Ministry of Environment & Forestry

2022

Integrate PT Semen Baturaja through rights issue transaction

2019

Acquired PT Holcim Indonesia to solidify market dominance, renamed as Solusi Bangun Indonesia

2013

Transformation to strategic holding, renamed as Semen

Indonesia 2012

Acquired Thang Long Cement Company from Vietnam for global reach

1995

Consolidated with PT Semen Padang & PT Semen Tonasa, became largest national

Cement	Cement	End-to-end
Manufacturing	Downstream	Businesses
	Businesses
✓ 6+1 Brands,	✓ Readymix	✓ Mining
Strong		Concrete	✓	Packaging
presence in
✓	Mortar	✓	Waste
Indonesia
✓ Precast		Management

✓ Multipurpose	✓ Logistic
	Cement
	✓ IT Services
✓	Special

Application	✓ Industrial Estate
Cement

Shareholders

51% 18%31%

Government of Indonesia National Public

Foreign Public

cement producer

1991

First SOE to be listed in

Jakarta Stock Exchange 1957

Established as PT Semen

Gresik

Green Label certification	Self-Declaration of	Sustainable production
from Green Product	EcoLabel from Ministry of	process from Ministry of
Council Indonesia (GPCI)	Environment & Forestry	Industry

3

Extensive Distribution Network across Indonesia & the Region

Production &

Vietnam

Distribution Facilities

Integrated

Cement Plants

Quang Ninh Plant - Vietnam

Capacity: 2.3 MT/Year

Lhoknga Plant

Packing Plants	Grinding
Plants
Lhokseumawe	Banjarmasin	Ho Chi Minh
Malahayati	Balikpapan	Kuala Indah
Belawan	Samarinda	Dumai

9	7
Integrated Plant		Ports
Locations
26		8
Packing Plant		Grinding
Locations		Plants

Distribution

Channels

Aceh

385

Distributors

>70,000

Retail

Stores

North Sumatra
West Sumatra	West Kalimantan
Bengkulu
South Sumatra
Lampung

Capacity: 1.8 MT/Year

Indarung Plant

Capacity: 8 MT/Year

Narogong Plant

Capacity: 6 MT/Year

Rembang Plant

Capacity: 3 MT/Year

Cilacap Plant

Capacity: 3.4 MT/Year

Tuban Plant

Capacity SI: 13.5 MT/Year

Capacity SBI: 3.6 MT/Year

Pangkep Plant

Capacity: 7.4 MT/Year

Baturaja Plant

Capacity: 3.9 MT/Year

North Sulawesi

East Kalimantan

Dumai	Makassar	Cigading
Ciwandan
Batam	Mamuju
Gresik
Teluk Bayur	Palu
Palembang
Bengkulu	Biringkassi
Panjang
Palembang	Kendari
Lampung	Bitung
Ciwandan	Celukan Bawang	Ports
Tanjung Priok	Maluku Utara
Banyuwangi	Ambon
Pontianak	Sorong	Thang Long Port
		Lhoknga
		Dumai
		Teluk Bayur
		Tuban
		Gresik
		Biringkasi

Papua

Maluku

Central Sulawesi

Southeast Sulawesi

SouthSouthSulawesi

East Java

Central Java West Java

4

CEMENT SECTOR UPDATE

Industry supply & demand will be driven by potential growth of retail and infrastructure projects

Domestic cement capacity vs demand

(MT)

		119.1	122.1
100.00				CAGR
	CAGR			+3 up to 4%
	+3.5%	65.5
	-10.3%	+4.3%		+2%E
50.00	-3.3%+3.5%

Cement Demand Drivers

Bag

Property & Housing developments			Housing Payment Liquidity Facility
		(FLPP)
					(K unit)					200	220
~1%		12.75 million								179			167
Estimated annual		units						109
pop. growth from		Backlog national
	58	78
270 million		housing
Indonesia pop. in		construction per
2021		2022
	2018	2019	2020	2021	2022	2023	2024E

Capacity Demand

This anomaly was mainly contributed from soft bag demand due to a shift in household

spending priorities and inflation of goods and services

		FY23	FY23
		Market Share	Capacity Share
	Semen Indonesia*	50.5%	45.5%	Only 4 players
	Indocement**	26.6%	28.6%
	cover ~92%
	Merah Putih	7.1%	8.9%
	demand
	Conch	6.9%	7.3%
	Singa Merah	2.9%	5.0%	15	12
	Jui Shin	2.4%	1.5%
	players	players
	Semen Jawa (SCG)	1.9%	1.5%
	2021	End of 2023
	Semen Bima (STAR)	1.9%	1.5%	• Semen Baturaja
	Semen Kupang***	0.0%	0.3%
	integrated into SIG
	Semen Serang	N/A	0.8%
	• Bosowa leased their
	Semen Jakarta	N/A	1.0%
	facilities to Indocement
	Hippo	N/A	0.4%
	• Indocement acquired

Bulk

Infrastructure developments

High Budget Allocation for Infrastructure up to 2024 Based on National Dev. Plan 2020-24

21.5 million ton

Potential Cement Demand for New Capital

Government Infrastructure Budget

(Trillion IDR)

401 410 415 423 417 366 392 422

290 317

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E

Cement Needs for New Capital (Million Ton)

	7.5
	5.9
	4.0
1.9	2.2

Semen Grobogan

*including Semen Baturaja

**including Semen Bosowa & Semen Grobogan

***only produce cement, trading by SMGR

2022-242025-292030-342034-392040-45

Source: Demand data up to 2023 from Indonesia Cement Association. Demand forecast from Indonesia Cement Association
and SIG calculations (~4% CAGR). New Capital investment from E-Monitoring PUPR, Web-based demand estimation, UU RI	5
No.3 2022.

CEMENT SECTOR UPDATE

Distribution of supply and demand in Indonesia

Sumatra

Kalimantan

Sulawesi

East Indonesia

Capacity (mio ton)

SIG (I+GP)	14.5
Merah Putih (GP)	1.9
Total capacity	16.4
Demand	14.2

Capacity Demand

13.4%	▲ 5.3%
21.7% YoY

Java

Capacity (mio ton)		Capacity
SIG (I+GP)	32.2
Indocement (I)			27.3
Merah Putih (I)	7.8
				66%
Singa Merah (I)	3.0
Conch (GP)	2.2

Capacity (mio ton)
Indocement (I)	2.6
Conch (I)	3.0
Singa Merah (I)	3.0
Merah Putih (GP)	1.0
Total capacity	9.6
Demand	5.2
Capacity	Demand ▲ 21.6%
	YoY
7.9%	7.9%

Capacity (mio ton)

SIG (I)	7.4
Semen Bosowa (I)	4.2
Conch (I)	2.0
Total capacity	13.6
Demand	6.2
	Capacity	Demand
			▼ 3.5%
			YoY
11.1%	9.5%

Capacity (mio ton)

Conch (I)	1.5
Total capacity	1.5

Demand2.3

Capacity Demand

▲ 5.8%

YoY

1.3% 3.5%

Bali Nusra

Capacity (mio ton)

Semen Kupang (I)	0.4
Total capacity	0.4
Demand	3.9

		Demand
Semen Bosowa (I)	2.0
Semen Jawa (I)	1.8
Jui Shin (I)	1.8 51.4%
Semen Bima (I)	1.8
Others	2.7
Total capacity	80.6
Demand	33.7

▲0.6%	Supply & demand are imbalance, where some of the supply
YoY
capacity are located far from the source of demand, while it is
	costly to distribute cement from the plant.

Capacity Demand

0.3% 6%

• 13.1%

YoY

Note: Capacity & demand are percentage of FY 2023 of national total capacity & demand, respectively	6

SIG benefited the increased demand in 2023 more than others, and will keep going to extract further in 2024

Demand FY-23 recorded growth 3.5% YoY supported by bulk growth by 12.8%, while bag recorded flat YoY. SIG domestic volume was able to grow above the market (4.7% YoY).

Bag Volume Growth

2023

9.4%

7.2%

-7.8%

…Kalimantan leads the demand growth for 2023 due to IKN, followed by Bali Nusra for the acceleration program by the government for Tourism Area.

▲ 3.5%	Regional Demand Growth

12.6%

Industry	10.7%
SIG

-9.5%

Demand Growth

YTD 2023

	1H-23	2H-23
	Bulk Volume Growth 2023
-4.8%	-4.3%		20.5%
		19.7%
	12.8%

	▲ 5.3%	▲21.6%
	YoY
	YoY	▼ 3.5%
			YoY
Sumatera
-1.1 %	Bag	▲ 0.6%
30 %	Bulk	YoY	▲ 13.1%
			YoY

• 5.8% YoY

	4.0%
1H-23	2H-23
			1H-23	2H-23
Market Share Trends (%)

Java
		Kalimantan		Bali Nusra			Sulawesi		East Indo
-1.5 %	Bag
	4.5 %	Bag		11.8 %		Bag			-1.6 %	Bag		2.2 %	Bag
5.1 %	Bulk
	91.6 %	Bulk							-7.7 %	Bulk
		25.5 %		Bulk				19.2 %	Bulk

Strategy Focus

+0.6% YoY

49.9 50.5

-0.6% YoY

27.2

26.6

+0.0% YoY

22.9 22.9

SIG market share FY23 grow 0.6% YoY while the next best competitor's market share decrease 0.6% YoY. However, the ecobrand segment market share remains flat.

Micromarket Strategy,

• Increase ASP and maintain volume on area with strong positioning,
• Grow volume through multi-brand strategy in more competitive area.

Growth in Bulk Segment,

Maintain high Share of Wallet especially in Government Infrastructure Projects and Private projects and industries.

Improvement in Export Volume,

2022	2023	2022	2023	2022	2023
		SIG		Next Best Competitor			Ecobrand Players

*Source: Demand data 2023 from Indonesia Cement Association, adjusted

Increase in export volume by market penetration on new potential market.

7

SIG RESILIENT STRATEGIES

SIG STRATEGY FOCUS

Strengthen the 4 main strategies to create more sustainable values

Revenue Optimization

Cost Management

Red Ocean

Domestic market

Maximize export market

Operational Excellence

"Optimize

profitability"

Micromarket

strategy

Modernization of retail ecosystem

to gain better visibility on retail level

Bulk market

maintain leadership in strategic national projects

Up to 8.5 mio ton

Port capacity for export

Positive

contribution margin

"Optimize production index & cost efficiency"

"Cargo

consolidator"

Up to 11%	Coal	SEEC	STEC
Specific	Specific
(2019-2030)	index	Electrical	Thermal
Clinker factor	Energy	Energy
reduction
reduction	Consumption	Consumption
	Reduction	Reduction

~3,000 routes	~9,800 trucks
~88% land and 12% sea	~11% owned
routes

Blue Ocean

"Expand the products & businesses"

Existing product & solution

Ready mix solution

Non-OPC bulk cement

Masonry

Mortar

Further invest in BM solution, including distribution & logistics

SIG wide operations

385 Distributors >70,000 Retail stores

Decarbonization	AFR	RDF	Solar Panel
"Reduce	▲ 20%	Tonasa	▲ 572 MWp*
emission"	Thermal	&Tuban	Solar Panel Rollout
	Substitution Rate	RDF plant facilities	2021-2030 Target
	2030 Target
SMBR Integration	Integrated functions & group
"Value	policies:
✓ Sales & marketing
creation"	✓ Supply chain
✓ Procurement

✓ Finance

✓ Production

✓ Human Capital ✓ ICT

9