Nov 28, 2012 ... Today's Presentation. ▫ Overview GudangGaram and the Kretek Sector. ▫ GG
Performance Q3: 2012 vs 2011. 2 ...
PUBLIC EXPOSE PT Gudang Garam Tbk The Ritz Carlton Pacific Place, Jakarta 28 November 2012 1
Today’s Presentation Overview GudangGaram and the Kretek Sector GG Performance Q3: 2012 vs 2011
2
I d t growth Industry th 87.1
72.5 71.1
72.3
68.4
71.8
70.1 63.8 53.8
(in billion sticks) 55.2
52.4
SKM FF
51.0
SKM LM SKT SPM
19.2
19.2 14.7
14.2
2010
2011
Gudang Garam Market Share (%) (Company estimates) (Company estimates)
Q3 2011
Q3 2012
Y/E 2011
Q3 2011
Q3 2012
20.1%
20.1%
20.8% 3
M k tt d Market trends V Volume growth sustained at 4.7% (2011: 7.5%) l th t i d t 4 7% (2011 7 5%) SKM Light (LTN) sector fastest growing • Q3 2012 12.6% (2011 22.6%) g g g SKM Full Flavour sector growing again • Q3 2012 2.7% (2011 down by 0.4%) SKT down by 2.5% (2011 up 2.5%) SKT down by 2 5% (2011 up 2 5%) Cost pressure across the cigarette sector: from raw materials (mainly clove shortages) t i l ( i l l h t )
4
The market and GG The market and GG Market
Gudang Garam
Volume growth sustained at 4.7% (2011: 7.5%) SKM Light (LTN) sector fastest growing Q3 2012 12.6% (2011 22.6%) SKM Full Flavour sector growing again Q3 2012 2.7% (2011 down again Q3 2012 2.7% (2011 down 0.4%) SKT down by 2.5% (2011 up 2.5%) Cost pressure across the cigarette Cost pressure across the cigarette sector: raw materials (mainly clove shortages)
Volumes up 6.6% Q3 (YoY) SKM overall up 6.2% Q3 Sound growth in Light (LTN) GG premium FF brands in line with market trend with market trend GG SKT still growing, up 8.7% Q3 Clove prices eased, raw material Clove prices eased raw material stock replenished
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Gudang Garam: Product Mix SKM Q3 2012 2011
SKT 84 81
16 19
2010
83
17
2009
84
16
2008
86
14
2007
87
13
2006
88
12
2005
88
12
2004
87
13
2003 2002
All figures compiled from Company Data
84 82
16 18
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N tI Net Income 2011 and Q3 2012 2011 d Q3 2012 2011 (audited)
Q3 11 (Unaudited)
Q3 12 (Unaudited)
Rp (billion)
% of Sales
Rp (billion)
% of Sales
Rp (billion)
% of Sales
41,884
100%
30,568
100%
35,599
100%
(31 755) (31,755)
75 8% 75.8%
(23 017) (23,017)
75 3% 75.3%
(28 898) (28,898)
81 2% 81.2%
10,129
24.2%
7,551
24.7%
6,701
18.8%
46
0%
36
0%
46
0%
(3,291)
7.9%
(2,325)
7.6%
(2,336)
6.6%
(4)
0%
(3)
0%
(8)
0%
((12))
0%
((11))
0%
((12))
0%
Finance expense
(253)
0%
(131)
0%
(334)
0%
Profit before Income Tax
6,615
15.8%
5,117
16.7%
4,057
11.4%
(1 657) (1,657)
3 9% 3.9%
(1 281) (1,281)
4 2% 4.2%
(1 014) (1,014)
2 8% 2.8%
4,958
11.8%
3,836
12.6%
3,043
8.5%
Sales Cost of Sales Cost of Sales Gross Profit Other Income Operating expenses Other expenses FX Gain / Loss /
I Income tax expense t Total Comprehensive Income Excise % of Cost of Sales
70%
70%
68%
Raw materials % of Cost of Sales
23%
22%
25%
Source: Company annual reports, published unaudited figures
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C of Sales Cost fS l 31.7 28.8 Cost of Sales in Rp Trillion
25.8
25.0
23.0
13%
23 0 23.0
11%
20%
Raw materials & annual growth rate
28.9
16%
10%
7%
5%
Excise & annual growth rate
42%
4%
9%
8%
7%
5%
21%
Others 2007
2008
2009
Last 5 years Last 5 years
2010
2011
Q3 2011
Q3 2012
Comparative 2 years Q3 Comparative 2 years Q3
The rise in both raw materials costs and excise paid was exceptional in 2012. 8
Fi Financial Highlights ‐ i l Hi hli ht Assets A t Unaudited summary figures as published y g p Rp billion
Q3 2011
Q3 2012
∆%
Cash
1,631
1,464
Receivables
1,023
1,209
Inventories
23,037
26,767
578
768
33
Total current assets
26,269
30,208
15
Fi d & th Fixed & other assets t
8 339 8,339
10 520 10,520
26
34,608
40,728
18
Other
Total assets
Comment
(10) 18 In line with sales growth 16 In line with higher raw materials costs
Additional / replacement machinery / / p y/ fleet, and buildings
9
Fi Financial Highlights ‐ i l Hi hli ht Liabilities Li biliti Unaudited summary figures as published Rp billion Short term loans
Q3 2011
Q3 2012
∆%
Comment
6,325
9,456
642
513
(20)
Excise duty and VAT payables
3,033
3,738
23
Other
1,179
1,441
22
Payables (including taxes)
Shareholders equity incl. retained earnings retained earnings
23,429
25,580
Total Liabilities & Shareholders’ equity Shareholders equity
34,608
40,728
49 Increase in raw materials/fixed assets
A dividend of Rp1,924 billion (Rp1,000 per share) was declared in the RUPS 9 and paid in full in August 2012 from and paid in full in August 2012 from 2011 earnings. 18 10
Stakeholder value: track record k h ld l k d Rp per share
2007
2008
2009
2010
2011
Earnings per share Earnings per share (Net profit per share)
750
977
1 796 1,796
2 155 2,155
2 544 2,544
Dividend declared from annual Dividend declared from annual earnings
250
350
650
880
1 000 1,000
17.08 759
17.70 776
19.24 1,342
20.79 1,417
22.32 1,657
Taxes: • Excise Duty & VAT (trillion) • Income Tax (billion)
Dividend income paid to shareholders has more than kept pace with earnings growth.
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Outlook The industry offers sound fundamentals The industry offers sound fundamentals • Underlying growth trend – consumer buying power still evident ‐ inflation contained, employment improving evident ‐ inflation contained employment improving
GG Earning prospects • B Balanced approach on volume, market share and l d h l k t h d profitability • Nationwide distribution coverage and sound brand Nationwide distribution coverage and sound brand equity of multiple products • Company Company’ss sound financial position sound financial position
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A l ti A selection of our brands f b d From Full Flavour to Light and Mild g SKT Merah series
Djaja
Sriwedari
Klobot
SKM FF International series
Surya series
SKM LM
Surya Professional Mild
Surya Slim Series
Surya Signature Series 13
A l ti A selection of our promotions f ti
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O Our operations ti
• 2 major production sites
• Primarily “machine made” kretek
• Substantial capacity available
• 16% still produced by hand
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A selection of CSR activities A selection of CSR activities
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PUBLIC EXPOSE PT Gudang Garam Tbk
Thank you Thank you 17
