- Indocement is The First Indonesian Company Successfully Completed CDM Project
- Significant Results of Year 2007
- Continuing Significant Results in The First Quarter of 2008
Jakarta, May 14, 2008 (ANTARA) -
Summary of Resolution of the Annual General Meeting of Shareholders
The Annual General Meeting of Shareholders (the "AGMS") of PT Indocement Tunggal Prakarsa Tbk. (the "Company") convened in Jakarta on Wednesday, May 14, 2008 approved among others the distribution of Rp40 per share or about 15% of the Company's profit for the year 2007 as cash dividend. The dividend to be distributed amounting to Rp147,249,267,960 (One hundred forty seven billion two hundred forty nine million two hundred sixty seven thousand and nine hundred sixty Rupiah).
The shareholders also approved the change in the composition of the Company's Board as follows:
a. To have a new President Commissioner, DR. Albert Scheuer. He has a very strong background as technical expertise to further strengthen the Company's technical competitiveness in future.
b. To appoint Mr. Hasan Imer as Director of the Company for the term of office as of 1 September 2008 to replace the Company's current technical director, Mr. Oivind Hoidalen who will retire as of 31st August 2008.
Summary of Resolution of the Extraordinary General Meeting of Shareholders
The Extraordinary General Meeting of Shareholders (the "EGMS") of the Company, convened on the same day, had adopted the following resolutions:
1. To approve the appointment of HC Fuels Limited, an Affiliated Party of HeidelbergCement AG as Company's broker or marketing agent for the purpose of sale of Company's CER;
2. To approve the possible sale of Company's CER to the Affiliated Parties of HeidelbergCement AG, the principal shareholder of the Company whether or not through the services of HC Fuels.
3. To extend the appointment of HeidelbergCement Technology Center Gmbh has been approved by the extraordinary general meeting of shareholders on 23 February 2005 and 29 March 2006 by including the technical advisory services from all of the companies which are the Affiliation of HeidelbergCement Technology Center Gmbh within the organization of HeidelbergCement Group.
Indocement Is the First Indonesian Company Successfully Completed the CDM Project (CERs)
The Company is expected to able to produce 6-7 million tons CERs starting 2005 up to 2012 that will contribute additional income for the Company per year.
As of March 2008, UNFCCC issued 80,967 the CERs in relation with Alternative Fuel Project undertaken by the company during period of Year 2005 up to end of July 2007. The certification process for Blended Cement Project is still in underway and expected to be completed soon
Significant Results of Year 2007
The Company has achieved the highest record level in sales volume both for domestic and export market, totaling 14.5 million tons (previous year was 13.1 million tons)
The company posted 7.9% growth in domestic sales volume in 2007, higher than the national growth of 7.0%, increasing our total share of domestic cement market to 30.9% from 30.6%. Cement domestic sales volumes reached 10.7 million tons (previous year was 10.0 million tons). In addition, export sales volume reached 3.8 million tons (previous year was 3.2 million tons)
To compensate part of dramatic cost increase in coal and fuel, the Company increased its average domestic sales price by 7.2% year-on-year. As a result, net revenues rose by 15.8% to Rp7,323.6 billion (previous year was Rp6,325.3 billion). The gross margin improved to 38% from 34%.
The income from operations grew considerably by 48.4% at Rp1,584.8 billion compared to Rp1,067.7 billion posted in the same period last year.
EBITDA also increased by 35.2% to Rp2,142.7 billion (previous year was Rp1,584.9 billion). This year, the net income rose to Rp983.7 billion, a 65.9% increase from Rp592.8 billion posted in the same period last year as there was sizeable reduction of interest expense from Rp301.0 billion the previous year to Rp195.6 billion. This is attributable to the reduction on the company?s debt level and interest rate.
On December 14, 2007, Indocement has fully prepaid the syndicated bank loan facility obtained in April 2006. The remaining debt is only HC Finance B.V loan of USD150 million that has been hedged by cross currency interest rate swap into Rupiah.
Net gearing declined to 16% from 37% in 2006, the lowest level in more than a decade. Net Debt to EBITDA was also reduced to 0.51 from 1.40. EBITDA to Net Interest Cover times increased double to 11.9 from 5.8 in 2006.
Continuing Significant Results in the First Quarter of 2008
The Company continuously performed substantial sales growth in the first quarter of 2008. Taking advantage of the Company's available capacity to supply domestic market whenever there is high demand, the Company successfully increased its domestic sales by 25.3%, reaching 2.9 million tons (previous year: 2.3 million tons). It is considerably higher than the national growth of 16.8%. Accordingly, the domestic market share has improved to 32.8% from 30.6% achieved in the same period last year.
In addition, the Company reduced its export sales volume by 22.3% to 0.6 million tons (previous year: 0.8 million tons) in order to supply the high demand in the domestic market. The total sales volume grew by 13% to 3.6 million (previous year: 3.1 million tons).
As the significant hike in energy costs, such as more than 100% coal price increase and 60% fuel price increase, the Company needs to pass through such cost increase into the market. So far, we are able to increase the average domestic selling prices by 16.5% year-on year or 3.1% increase from December 2007.
Consequently, net revenues rose by 38.6% to Rp2,052.5 billion (previous year: Rp1,480.6 billion). The gross margin expanded to 42% from 32%. The income from operations soared by 156.0%, from Rp213.2 billion to Rp545.8 billion. Thus, operating margin expanded from 14.4% to 26.6%.
EBITDA doubled to Rp692.8 billion (previous year: Rp345.5 billion), while net income jumped by 235.1% to Rp377.0 billion (previous year: Rp112.5 billion). This was attributable to the decline of interest expense from Rp55.8 billion to Rp35.1 billion as the remaining debt is only HC Finance B.V loan of USD150 million that has been hedged by cross currency interest rate swap into Rupiah. Moreover, there was foreign exchange gain of Rp10.9 billion compared to foreign exchange loss of Rp4.8 billion posted in the same period last year.
Net gearing kept declining to 11% from 16% by the end of 2007 and 35% in the first quarter of 2007. Net Debt to EBITDA dropped to 0.29 from 1.54 posted in the same period last year, whereas EBITDA to Net Interest Cover times almost quadrupled to 24.6 from 6.4. All the financial ratios are at the lowest level in more than a decade.
Investment Plans
Mr. Daniel Lavalle as the President Director of the Company remarked:
"With the on going strong growth of cement consumption, Indocement will continue to prepare its cement plants to provide more cement capacities. After finishing our revamping project of Plant 8 last year that added annual capacity of up to 600,000 tons of cement, Indocement will continue to invest in adding 1.2 million tons of cement by constructing a new cement mill capacity in Cirebon that will be ready in operation by Q2 -2009.
In addition, Indocement is currently doing an internal study to build 2-3 new cement mills and do several other kiln modification projects in Plant 7 and 11 in Citeureup, Plant 9 and 10 in Cirebon and Plant 12 in Tarjun that enables us to reach the capacity of 21-22 million tons in next 3 years period.
Each of above investments only takes about 9 to12 months to be completed at the low costs in the range of USD40~USD50 per ton
If cement domestic demand is continuing to be high in the future, Indocement is also planning to invest a new kiln line with the capacity of 10,000 tons per day (or equivalent to cement production capacity of more than 3MT per annum) that will be located either in Citeureup, Bogor, West Java, or in Tarjun, Kotabaru, South Kalimantan or other area in Java -subject to further feasibility study.
The investment cost for new kiln line is about USD120-140 per ton and it will take about 3-4 years to be completed.
Expansion Plans (Vertical Integration Strategy)
In July 2007, Indocement acquired a 51% share of PT Gunung Tua Mandiri, a new developed Andesit quarry in Rumpin, West Java, with estimated aggregate reserves of 30 million tons and current annual production of approximately 1.5 million tons. The production has started since November 2007.
Indocement also signed a Conditional Sale and Purchase and Transfer of Assets for the entire assets and aggregate mining owned by PT Handi Perkasa, located in Purwakarta, on 18th December 2007. The mining area is 150 hectare and the estimated reserves of approximately 100 million tons.
"The expansion into aggregates business will strengthen our vertical integration strategy in scope of building materials supply, especially to anticipate the upcoming infrastructure projects planned to start soon in Indonesia", added Mr. Daniel Lavalle
For further information, please contact:
Christian Kartawijaya - Finance Director
PT Indocement Tunggal Prakarsa Tbk.
Wisma Indocement 8th floor
Jl. Jenderal Sudirman Kav.70-71
Jakarta 12910
Telephone : (021) 2512121
Facsimile : (021) 2510066
- Significant Results of Year 2007
- Continuing Significant Results in The First Quarter of 2008
Jakarta, May 14, 2008 (ANTARA) -
Summary of Resolution of the Annual General Meeting of Shareholders
The Annual General Meeting of Shareholders (the "AGMS") of PT Indocement Tunggal Prakarsa Tbk. (the "Company") convened in Jakarta on Wednesday, May 14, 2008 approved among others the distribution of Rp40 per share or about 15% of the Company's profit for the year 2007 as cash dividend. The dividend to be distributed amounting to Rp147,249,267,960 (One hundred forty seven billion two hundred forty nine million two hundred sixty seven thousand and nine hundred sixty Rupiah).
The shareholders also approved the change in the composition of the Company's Board as follows:
a. To have a new President Commissioner, DR. Albert Scheuer. He has a very strong background as technical expertise to further strengthen the Company's technical competitiveness in future.
b. To appoint Mr. Hasan Imer as Director of the Company for the term of office as of 1 September 2008 to replace the Company's current technical director, Mr. Oivind Hoidalen who will retire as of 31st August 2008.
Summary of Resolution of the Extraordinary General Meeting of Shareholders
The Extraordinary General Meeting of Shareholders (the "EGMS") of the Company, convened on the same day, had adopted the following resolutions:
1. To approve the appointment of HC Fuels Limited, an Affiliated Party of HeidelbergCement AG as Company's broker or marketing agent for the purpose of sale of Company's CER;
2. To approve the possible sale of Company's CER to the Affiliated Parties of HeidelbergCement AG, the principal shareholder of the Company whether or not through the services of HC Fuels.
3. To extend the appointment of HeidelbergCement Technology Center Gmbh has been approved by the extraordinary general meeting of shareholders on 23 February 2005 and 29 March 2006 by including the technical advisory services from all of the companies which are the Affiliation of HeidelbergCement Technology Center Gmbh within the organization of HeidelbergCement Group.
Indocement Is the First Indonesian Company Successfully Completed the CDM Project (CERs)
The Company is expected to able to produce 6-7 million tons CERs starting 2005 up to 2012 that will contribute additional income for the Company per year.
As of March 2008, UNFCCC issued 80,967 the CERs in relation with Alternative Fuel Project undertaken by the company during period of Year 2005 up to end of July 2007. The certification process for Blended Cement Project is still in underway and expected to be completed soon
Significant Results of Year 2007
The Company has achieved the highest record level in sales volume both for domestic and export market, totaling 14.5 million tons (previous year was 13.1 million tons)
The company posted 7.9% growth in domestic sales volume in 2007, higher than the national growth of 7.0%, increasing our total share of domestic cement market to 30.9% from 30.6%. Cement domestic sales volumes reached 10.7 million tons (previous year was 10.0 million tons). In addition, export sales volume reached 3.8 million tons (previous year was 3.2 million tons)
To compensate part of dramatic cost increase in coal and fuel, the Company increased its average domestic sales price by 7.2% year-on-year. As a result, net revenues rose by 15.8% to Rp7,323.6 billion (previous year was Rp6,325.3 billion). The gross margin improved to 38% from 34%.
The income from operations grew considerably by 48.4% at Rp1,584.8 billion compared to Rp1,067.7 billion posted in the same period last year.
EBITDA also increased by 35.2% to Rp2,142.7 billion (previous year was Rp1,584.9 billion). This year, the net income rose to Rp983.7 billion, a 65.9% increase from Rp592.8 billion posted in the same period last year as there was sizeable reduction of interest expense from Rp301.0 billion the previous year to Rp195.6 billion. This is attributable to the reduction on the company?s debt level and interest rate.
On December 14, 2007, Indocement has fully prepaid the syndicated bank loan facility obtained in April 2006. The remaining debt is only HC Finance B.V loan of USD150 million that has been hedged by cross currency interest rate swap into Rupiah.
Net gearing declined to 16% from 37% in 2006, the lowest level in more than a decade. Net Debt to EBITDA was also reduced to 0.51 from 1.40. EBITDA to Net Interest Cover times increased double to 11.9 from 5.8 in 2006.
Continuing Significant Results in the First Quarter of 2008
The Company continuously performed substantial sales growth in the first quarter of 2008. Taking advantage of the Company's available capacity to supply domestic market whenever there is high demand, the Company successfully increased its domestic sales by 25.3%, reaching 2.9 million tons (previous year: 2.3 million tons). It is considerably higher than the national growth of 16.8%. Accordingly, the domestic market share has improved to 32.8% from 30.6% achieved in the same period last year.
In addition, the Company reduced its export sales volume by 22.3% to 0.6 million tons (previous year: 0.8 million tons) in order to supply the high demand in the domestic market. The total sales volume grew by 13% to 3.6 million (previous year: 3.1 million tons).
As the significant hike in energy costs, such as more than 100% coal price increase and 60% fuel price increase, the Company needs to pass through such cost increase into the market. So far, we are able to increase the average domestic selling prices by 16.5% year-on year or 3.1% increase from December 2007.
Consequently, net revenues rose by 38.6% to Rp2,052.5 billion (previous year: Rp1,480.6 billion). The gross margin expanded to 42% from 32%. The income from operations soared by 156.0%, from Rp213.2 billion to Rp545.8 billion. Thus, operating margin expanded from 14.4% to 26.6%.
EBITDA doubled to Rp692.8 billion (previous year: Rp345.5 billion), while net income jumped by 235.1% to Rp377.0 billion (previous year: Rp112.5 billion). This was attributable to the decline of interest expense from Rp55.8 billion to Rp35.1 billion as the remaining debt is only HC Finance B.V loan of USD150 million that has been hedged by cross currency interest rate swap into Rupiah. Moreover, there was foreign exchange gain of Rp10.9 billion compared to foreign exchange loss of Rp4.8 billion posted in the same period last year.
Net gearing kept declining to 11% from 16% by the end of 2007 and 35% in the first quarter of 2007. Net Debt to EBITDA dropped to 0.29 from 1.54 posted in the same period last year, whereas EBITDA to Net Interest Cover times almost quadrupled to 24.6 from 6.4. All the financial ratios are at the lowest level in more than a decade.
Investment Plans
Mr. Daniel Lavalle as the President Director of the Company remarked:
"With the on going strong growth of cement consumption, Indocement will continue to prepare its cement plants to provide more cement capacities. After finishing our revamping project of Plant 8 last year that added annual capacity of up to 600,000 tons of cement, Indocement will continue to invest in adding 1.2 million tons of cement by constructing a new cement mill capacity in Cirebon that will be ready in operation by Q2 -2009.
In addition, Indocement is currently doing an internal study to build 2-3 new cement mills and do several other kiln modification projects in Plant 7 and 11 in Citeureup, Plant 9 and 10 in Cirebon and Plant 12 in Tarjun that enables us to reach the capacity of 21-22 million tons in next 3 years period.
Each of above investments only takes about 9 to12 months to be completed at the low costs in the range of USD40~USD50 per ton
If cement domestic demand is continuing to be high in the future, Indocement is also planning to invest a new kiln line with the capacity of 10,000 tons per day (or equivalent to cement production capacity of more than 3MT per annum) that will be located either in Citeureup, Bogor, West Java, or in Tarjun, Kotabaru, South Kalimantan or other area in Java -subject to further feasibility study.
The investment cost for new kiln line is about USD120-140 per ton and it will take about 3-4 years to be completed.
Expansion Plans (Vertical Integration Strategy)
In July 2007, Indocement acquired a 51% share of PT Gunung Tua Mandiri, a new developed Andesit quarry in Rumpin, West Java, with estimated aggregate reserves of 30 million tons and current annual production of approximately 1.5 million tons. The production has started since November 2007.
Indocement also signed a Conditional Sale and Purchase and Transfer of Assets for the entire assets and aggregate mining owned by PT Handi Perkasa, located in Purwakarta, on 18th December 2007. The mining area is 150 hectare and the estimated reserves of approximately 100 million tons.
"The expansion into aggregates business will strengthen our vertical integration strategy in scope of building materials supply, especially to anticipate the upcoming infrastructure projects planned to start soon in Indonesia", added Mr. Daniel Lavalle
For further information, please contact:
Christian Kartawijaya - Finance Director
PT Indocement Tunggal Prakarsa Tbk.
Wisma Indocement 8th floor
Jl. Jenderal Sudirman Kav.70-71
Jakarta 12910
Telephone : (021) 2512121
Facsimile : (021) 2510066
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