SIG has continuously shown resilience during challenging time of increasing competition, slowing demand & rising coal price
Challenges
Actions
Financial Performance
Cement Demand*
Adjusting
Blended ASP Domestic
3Q 2022
National
(thousand ton)
2.1%
IDR bio
-8.8%
price up
(IDR thousand)
2,156
2,200
cement
36,524 33,282
14.9%
inline with
Increase in absolute
demand
15.1%
8.0%
10,408 11,961
cost push
EBITDA
contracted by
978
865
935
3Q 2021 3Q 2022
849
3.6%
38.4%
IDR bio
822
Bag
Bulk
Increase in absolute
594
YTD Sep 21
YTD Sep 22
3Q
9M
net profit**
2021
2022
3Q 2021
3Q 2022
Agressive
Market Share
Securing coal
Coal Price Increase yoy
2.2%
6.5%
8.7%
Increase in net profit
tier 2
75% 72%
supply at
42%
margin
3Q 2021
3Q 2022
players
25% 28%
DMO price
31%
9M 2022
Tier 1
Tier 2
0.2%
22.5%
22.7%
9M 2021
9M 2022
3Q 2022
9M 2022
Increase in EBITDA
margin
9M 2021 9M 2022
High coal
Indonesian
~51%
Efficiency
Clinker Factor & TSR (%)
18.9%
IDR bio
1,650
price
1,388
impacting
Coal Index 4
yoy increase in
through
70%
69%
Increase in absolute
(USD/Ton)
9M-22
clinker factor
COGS
net profit**
100
reduction and
5.5%
7.1%
9M 2021 9M 2022
50
Thermal
1.0%
5.5%
6.5%
0
Substitution
Clinker Factor
TSR
Increase in net profit
Rate (TSR)
9M 2021
9M 2022
margin
9M 2021 9M 2022
*Source: Demand data up to September 2022 from Indonesia Cement Association
(excluding Singa Merah). Singa Merah sales volume September 2022: 167.5 thousand tons, up to September 2022: 1,199.7 thousand tons
1
**attributed to owners of parent entity
9 MONTHS OF 2022 PERFORMANCE
9 MONTHS OF 2022 PERFORMANCE YOY
On track to grow profitability by managing ASP, securing coal at DPO & continue improving operational excellence
(in IDR billion)
▼0.2%
Domestic
Change in Total
0.0%
Flat Domestic
Revenue yoy
22,731
22,720
Revenue yoy
with 8%
Blended ASP
25,330
25,281
9M 2021 9M 2022
increase
Regional
-1.5%
Lower
2,600
2,561
Regional
Revenue yoy,
9M
9M
however ASP
9M 2021
9M 2022
grew by 25%
2021
2022
▲ 1.6%
▼ 6.9%
COGS
Lower operating
increase
expenses
17,654
17,938
4,333
4,033
9M
9M
9M
9M
2021
2022
2021
2022
24.0%
Decrease in finance cost
1,261
958
9M 9M
2021 2022
0.2%
EBITDA margin growth
22.5%
22.7%
9M 9M
2021 2022
18.9%
Improvement in net profit*
1,388
1,650
9M
9M
2021
2022
Net
(IDR
Relatively flat revenue
Higher COGS
Lower operating
Finance cost
Where lower total sales volume
From higher fuel cost
expenses
efficiency
compensated by ASP increase
and other
From lower
Contributed by lower
manufacturing
promotion,
interest bearing debt
*attributed to owners of parent entity
overhead
transportation and
balance
labor cost
3
IMPROVED PROFITABILITY
Outperforming industry peers
Through the higher revenue per ton growth and lower COGS per ton hike due to lower fuel & energy cost increase
Revenue/ton Growth
13.7%
14.3%
Peers
SIG
COGS/ton Growth
20.5%
16.3%
Peers
SIG
Fuel & energy cost/ton
Growth
36.6%
28.4%
Peers
SIG
Outperform peers
in absolute and margin profitability
EBITDA Growth
EBITDA Margin Growth
Net Profit Growth
Net Profit Margin Growth
18.9%
1.0%
0.6%
0.2%
-4.6%
-19.2%
-2.7%
-12.4%
Peers
SIG
Peers
SIG
Peers
SIG
Peers
SIG
Peers: domestic public listed cement companies that have published their 9M22 financial result as of 1 November 2022
4
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
Original Link
Original Document
Permalink
Disclaimer
PT Semen Indonesia Persero Tbk published this content on 01 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2022 23:49:07 UTC.
PT Semen Indonesia (Persero) Tbk is an Indonesia-based multinational building materials solutions company. The Company provides a range of product and service variants according to the level of development needs from simple renovations, property development projects, public facilities, infrastructure to other large-scale projects. The Company has two segments: cement production and non-cement production. Cement production segment produces and markets cement products in Indonesia, Vietnam, as well as various export destination countries. In addition to production facilities, the Company has also developed various supporting facilities, such as packaging factories, ports, and other distribution support networks spread across all provinces in Indonesia and parts of Vietnam. Non-cement production segment consists of mining limestone and clay, manufacturing packaging bags, developing industrial estates, finished and ready-to-use concrete, information system services, logistics and trading.
PT SEMEN INDONESIA (PERSERO) TBK 
