Holcim Indonesia

PT Holcim Indonesia Tbk is the third largest cement producer in Indonesia. The company is a cement-based building materials and services provider with operations in two countries, Indonesia and Malaysia. It provides a fully integrated range of ten cement types, concrete and aggregates from its two major production sites on the island of Java. The company currently holds a market share of around 15 to 16 percent in Indonesia in terms of cement production. Holcim and its subsidiaries have a combined cement production capacity of approximately 9.1 million tons in Indonesia and a further 1.2 million tons in Malaysia.

The company, which employs over 2,684 people, is part of the Swiss-based Holcim Group, one of the largest global cement manufacturers. It was founded as PT Semen Cibinong in 1971.

Profile

Industry Sector Basic Industry and Chemicals
Industry Sub Sector Cement
Established 15 June 1971
Listed 10 August 1977
Listed Company Code SMCB
Listed Shares 7,662,900,000
Dividend Yes
Major Shareholders (>5%) Holderfin BV (80.65%)
Key Subsidiaries Holcim Beton
Readymix Concrete Indonesia
Pendawa Lestari Perkasa
Bintang Polindo Perkasa
Holcim (Malaysia) Sdn. Bhd.

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Business Summary

Holcim Indonesia operates two cement plants; one in Narogong (West Java) and the other in Cilacap (Central Java), and it owns a cement grinding station in Ciwandan (Banten). In a period of four years, Holcim intends to expand its production capacity to 12.5 million tons of cement per year. Increased output will originate from two new cement plants: the Tuban 1 plant, which will commence production in the third quarter of 2013, and the Tuban 2 plant, which is expected to start operations in 2015. Production capacity of both Tuban 1 and Tuban 2 is estimated at 1.7 million tons per year each. As such, the two Tuban plants, which are located in East Java, will add 3.4 million tons (annually) to the company’s current output of 9.1 million tons per year.

Holcim and its Indonesian-based subsidiaries primarily serve the island of Java, home to about 60 percent of Indonesia's total population. Java is characterized by rapid urban housing and commercial development as well as pressing needs in its infrastructure, including new power stations, ports, highways, and watercourses. Its customers include wholesalers, retailers and concrete products manufacturers (CPMs).

      2008     2009     2010     2011     2012
Sales Volume
in million tons
     6.0      6.0      6.2      8.2      9.4
Exports
in million tons
     1.6      1.9      1.6      0.5      0.1

Source: Holcim Indonesia, Annual Report 2012


Holcim Indonesia's Financial Highlights:

       2008      2009      2010      2011      2012
Net Sales    5,341.1    5,943.9    5,960.6    7,524.0    9,011.1
Gross Profit
   1,950.0    2,249.7    2,249.4    2,862.9    3,346.8
Income from Operations      498.4    1,717.3    1,362.6    1,689.0    2,038.5
Net Profit      282.0      895.6      830.4    1,063.6    1,350.8
EBITDA      925.7    2,183.6    1,909.2    2,317.3    2,614.6
Total Assets    8,209.0    7,265.4  10,437.2  10,950.5       n.a.
Total Liabilities    5,403.1    3,949.2    3,611.2    3,423.2       n.a.
Earnings per Share¹        37       117       108       139       176
Dividend per Share¹       n.a.       n.a.        23        55        80
P/E Ratio (x)       n.a.       n.a.       n.a.     18.59     14.58

in billion Rupiah (IDR), unless stated otherwise
¹ in IDR rupiah
Source: Holcim Indonesia, Annual Report 2012


Future Prospects of the Indonesian Cement Sector

Indonesia's cement sector has shown a steep increase in domestic cement production and consumption. This trend is estimated to continue for a number of reasons:

Indonesia's current low per capita cement consumption.
The government's intention to ramp up much-needed infrastructure development.
An expanding middle class that gives rise to to new housing and real estate development.
Solid national economic conditions with annual GDP growth of plus 6 percent.

What are issues that negatively affect the Indonesian cement sector:

Infrastructure development is not reaching its full potential due to red tape, a weak legal system, and a lack of public and private funds.
International financial turmoil (USA and Europe) can influence Indonesia's economic growth, thus affecting domestic cement demand.
Recent increased property prices, low borrowing costs, easier access to credit can cause a housing bubble.

Semen Indonesia, Indocement Tunggal Prakarsa and Holcim Indonesia dominate Indonesia's cement sector.


Future Forecast Holcim Indonesia's Financial Highlights:

        2011       2012      2013F      2014F      2015F
Net Sales     7,524.0     9,011.1     9,609.0    10,667.0    11,611.0
Net Profit     1,063.6     1,350.8     1,307.0     1,527.0     2,079.0
EBITDA     2,317.3     2,614.6     2,534.0     2,939.0     3,628.0
Earnings per Share¹        139        176        172        200        271
P/E Ratio (x)      18.59      14.58      15.31      13.12       9.68

in billion Rupiah (IDR), unless stated otherwise
¹ in IDR rupiah
Source: Investor Daily

Contact Details

Investor Relations:
Menara Jamsostek
North Tower 15th floor
Jalan Gatot Subroto No. 38
DKI Jakarta
Phone
: +62 21 529 62011
Fax
: +62 21 529 62030
Email: esther.makainas@holcim.com
www.holcim.co.id

Location