PT SEMEN INDONESIA (PERSERO) TBK Optimizing Capabilities to Lead The Market
Earnings Call Full Year of 2023 Audited Financial Report
KEY HIGHLIGHTS
Improvement in revenue and profit before tax amid the competition and cost push
Industry update in Q4 2023 | SIG improved |
profitability in FY23 | |
Maintain Focus on 4 Main Strategies
Positive demand growth* in | IDR bio | |
Q4-2023 YoY and QoQ…. | 36,379 38,651 | |
14.9% | ||
6.6% | 3.5% | |
FY 2022 FY 2023 | ||
-3.1% | 3,299 | 3,304 |
- 6.2%
Increase in revenue
Red Ocean
▲0.6 % | 49.9 | 50.5 | ||||
(%) | ||||||
Growth in | ||||||
Market Share | ||||||
FY 2022 | FY 2023 | |||||
▲10.0% | (Thousand ton) | |||||
36,921 | 40,621 | |||||
Total sales | ||||||
volume growth
Blue Ocean | ||
Revenue | ▲5.7% | Ready mix |
Growth | ||
SpeedCrete| | ||
ThruCrete| |
FY 2022 | FY 2023 | Minimix |
Revenue | ▲ | Mortar |
Growth | 74.1% | |
Downstream | ||
Product |
-6.4% | ||||||
Q1 | Q2 | Q3 | Q4 | FY | ||
2023 | 2023 | 2023 | 2023 | 2023 | ||
FY 2022 FY 2023 | ||||||
...mainly supported by growth |
Increase in profit before tax
Supported by bulk, especially IKN & National Strategic Projects, and export volume
FY 2022 FY 2023
42.0%
4.7%
FY 2023
Domestic Regional
FY 2022 | FY 2023 | |||||
Revenue | Masonry | |||||
Growth | ▲39.1% | |||||
Special | ||||||
application | ||||||
FY 2022 | FY 2023 | cement | ||||
in bulk segment. | 2,365 | 2,170 | |||||||||||||
25.0% | 12.8% | ||||||||||||||
14.9% | |||||||||||||||
10.9% | 0.1% | 3.5% | FY 2022 FY 2023 | ||||||||||||
Q4-2023 | FY 2023 | 2,050 2,170 | |||||||||||||
Bag | Bulk | Total | |||||||||||||
FY 2022 FY 2023 |
*Source: Demand data 2023 from Indonesia Cement Association, adjusted **attributable to owners of parent entity
- 8.2%
Decrease in absolute
net profit**
- 5.9%
Increase in absolute net
profit**
(exc. tax impact of SBI share ownership)
Operational Excellence
Total | -1.9% | |
Cost/Ton | 862 | 845 |
FY 2022 | FY 2023 | |
Net | -11% | |
Financial | ||
Cost | 1,329 | 1,183 |
FY 2022 FY 2023
Consistent improvement in operation has contribute to lower total cost/ton YoY
Decrease in Finance cost giving additional contribution to higher profitability
Decarbonization | |||||||||||
PCC | 63.0% 61.4% | Decarbonization | |||||||||
Clinker | |||||||||||
Factor | target achievement | ||||||||||
has been reflected | |||||||||||
FY 2022 | FY 2023 | in improved | |||||||||
7.2% | 7.3% | Sustainalytics | |||||||||
ESG rating from | |||||||||||
TSR | High Risk (32,4) | ||||||||||
to Medium Risk | |||||||||||
FY 2022 | FY 2023 | ||||||||||
(22,9) | |||||||||||
Emission | 590 | 585 | |||||||||
Intensity | |||||||||||
- Scope 1 | |||||||||||
FY 2022 | FY 2023 | ||||||||||
FULL YEAR OF 2023 PERFORMANCE
Minimize the impact of fuel price increase through revenue optimization, operational excellence and deleveraging
(in IDR billion)
Domestic Revenue
3.4% 33,196 34,337
FY 2022 FY 2023
Increased YoY supported by 10.0% increased in total volume
- 6.2%
Change in total revenue YoY
- 10.8%
COGS increase
25,701 | 28,474 |
▼ 6.3% | ▼ 2.6% |
Lower operating | Decrease in finance |
expenses & other | cost |
operating revenues |
- 0.1%
Improvement in profit before tax
3,299 | 3,304 |
Regional Revenue
35.5%
3,183 | 4,314 |
FY 2022 FY 2023
Higher regional revenue YoY from the increase in export volume
FY 2022 FY 2023
FY 2022 FY 2023 |
6,052 | 5,673 |
FY 2022 | FY 2023 |
1,428
1,390 |
FY 2022 FY 2023
FY 2022 FY 2023 |
Net Profit Bridge**
(IDR billion)
Decreased
Increased
Total
Increase in revenue | Higher COGS | |
Contributed by | higher | as an impact of higher sales |
sales volume | mainly | volume, as well as increase in |
from bulk and export | higher fuel price, affecting the | |
logistics cost of energy, distribution, | ||
raw material and packaging. |
Lower operating expenses
From lower transportation and handling cost
Lower net finance cost
Contributed by lower interest expense from lower interest-bearing debt balance and increase in finance income from higher cash balance
*exclude the impact of a decrease in the deferred tax expense on the fair value of SBI from the transfer of ownership of SBI shares from SIIB to SIG. Audited net profit 2022 was Rp 2.36 Bio | 2 |
**attributable to owners of parent entity | |
FULL YEAR OF 2023 PERFORMANCE
Well maintained liquidity and solvability with strong balance sheet and capital structure
Balance Sheet Remain Strong
Improvement in cash and capital management
- 1.4%
Change in total assets YoY which mainly contributed by a decrease in inventories and net fixed assets
- 1.4%
Change in total liabilities & equity YoY which mainly contributed by accruals and sales in advance
▲15.5%
Change in cash & cash equivalents YoY
- 4 days
Optimum cash conversion cycle supporting high Cash From Operation
Total Assets
82,960 | 81,821 |
FY 2022 | FY 2023 |
Liabilities & Equity
82,960 | 81,821 |
FY 2022 | FY 2023 |
Cash & cash equivalent
6,007 | 6,940 |
FY 2022 FY 2023
Cash conversion cycle
20 |
16 |
FY 2022 FY 2023
Improvement in solvability with liquidity remain
strong resulting in improved credit rating into idAA+/Positive
Credit Rating
▼0.04x
Lower Net Debt to Equity
Net Debt/Equity
▼0.22x | ▲0.03x |
Lower Net Debt to | Higher EBITDA to |
EBITDA | |
Interest Expense | |
Net Debt/EBITDA | EBITDA/Interest |
▼0.22x
Lower Current Ratio
Current Ratio
Aug 2023 | ||
Aug 2022 | idAA+/Positive | |
idAA+/Stable | ||
FY 2022 | FY 2023 |
0.25 | 0.21 |
FY 2022 FY 2023
1.36 | 1.14 |
FY 2022 FY 2023
5.57 5.60
FY 2022 FY 2023
1.45 | 1.23 |
FY 2022 FY 2023
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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.
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
This information contained in this report has been taken from sources which we deem reliable. However, none of PT Semen Indonesia (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 Indonesia (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 Indonesia (Persero) Tbk, its affiliated companies or their respective employees or agents accepts liability for any errors, omission or mis-statements, negligent or otherwise, in this report and any liability in respect of the report or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expresses disclaimed.
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Thank You
@semenindonesia | Semen Indonesia | Semen Indonesia | @semenku |
PT Semen Indonesia (Persero) Tbk.
South Quarter, Tower A, Floor 19-20
Jl. RA. Kartini Kav. 8, Jakarta Selatan 12430, Indonesia
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PT Semen Indonesia Persero Tbk published this content on 14 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2024 02:33:00 UTC.
