Holcim adds management expertise and stays focused on core competence in sustainable building solutions
• Four new board appointments
• Tuban 1 fully operational, Tuban 2 ahead of schedule
• Total dividend of Rp 65 per share declared, 75% pay-out ratio
Jakarta, Tuesday, May 19th 2015, At the Annual General Meeting of Shareholders held today, shareholders approved Holcim Indonesia’s annual report, changes to the Board of Commissioners and Board of Directors and a total dividend of Rp 65 per share, representing a pay-out ratio of 75%. The interim dividend of Rp 34 per share was distributed in October 2014. An Extraordinary General Meeting of Shareholders was also held to approve routine adjustments to the company’s articles of association in compliance with standing regulations from OJK, the financial regulator.
Focused on a sustainable advantage in a slower growth market
President Director of Holcim Indonesia, Gary Schutz, underlined the company’s commitment to operating sustainably in the face of cost escalation, exceptional competition, a supply-demand imbalance and delays in development spending and infrastructure projects.
“Current conditions have necessitated extensive cost cutting and efficiency measures to ensure we protect margins, at a time of contracting demand,” noted Mr. Schutz. “I am pleased we are making progress with our plans to strengthen our presence in Sumatra in addition to a very strong footprint to cover Java, the largest market with Tuban plant fully operational. Holcim offers a wide range of innovative solutions, customer value and expertise beyond the core business of cement supply. These skills are essential for Indonesia to build much needed infrastructure, not only for sustaining domestic growth but to compete in the new Asean Economic Community, capitalising on its comparative advantages of extensive resources and a large consumer sector,” he added.
At the AGM today, Mr. Madan Lal Narula stepped down as Commissioner, having served since 2008. There were three newly appointed Commissioners approved by shareholders. Professor DR Kuntoro Mangkusubroto, former Minister and head of the special ministerial oversight unit of the previous Government, joined as President Commissioner, as an independent member of the Board of Commissioners, having served in the past as Independent Commissioner from 2001 to 2009. Mr. Hendra Kartasasmita, was appointed Commissioner, and brings over 30 years experience in consumer marketing in the region with a number of multinationals. Mr. Patrick McGlinchey, currently Regional General Counsel for Holcim East Asia Pacific and formerly Holcim Australia was also appointed as Commissioner. Joining the Board of Directors was Francois Goulut, previously Manufacturing Director at Holcim Vietnam. Mr. Goulut contributes over 24 years international experience with Holcim in cement plant management. Holcim CEO, Gary Schutz, in welcoming the new appointees noted, “The background of our new board members is exactly what we need in a highly competitive market, and represents a wealth of direct experience of Indonesia, the region, of the cement industry and commercial practice”.
First Quarter 2015 unaudited results: Public Expose update
In announcing the first quarter unaudited result, shared during a Public Expose on the same day, Kent Carson, CFO of Holcim Indonesia, said, “The cement industry as a whole faces some significant challenges, in the continued downward trend for this sector of the economy, and the absence, so far, of anticipated stimulus from fiscal spending on upgrading infrastructure.” He continued, “At the same time, competition has escalated significantly with considerable new capacity introduced, creating substantial oversupply in a market where costs continue to stubbornly climb.”
Responding to these conditions, the company has identified a number of ways to reduce overhead and improve productivity. “We have initiated several programmes for 2015 to streamline our operations to ensure we can operate more efficiently at reduced costs to preserve margins in a slower growth scenario,” said Kent Carson. He added, “these measures will also help ensure we are fit for the future when the construction sector regains momentum from much needed infrastructure activity, the backbone of the Government’s ambitious national development plans, together with housing and commercial property projects.”
About PT Holcim Indonesia Tbk
PT Holcim Indonesia Tbk (Holcim Indonesia) is a publicly listed company which its majority stake (86.35%), is owned and managed by Swiss-based Holcim Group, one of the world’s largest cement companies with more than 65,000 employees and production capacity of more than 170 million tons of cement.
As one of the largest cement companies in Indonesia, PT Holcim Indonesia Tbk maintains integrated businesses of cement, ready-mix concrete, and aggregates production. The company operates three cement plants in Narogong-West Java, Cilacap-Central Java, Tuban 1-East Java and a grinding facility in Ciwandan-Banten with total capacity of 11 million tons of cement and employs more than 2,500 employees.
PT Holcim Indonesia Tbk operates a domestic building material supply network, which covers special distributors, retailers, masons, and Solusi Rumah outlets – the outlet provides housing design service, building materials, building consultation, and financing access. All under one roof.
Further information please contact:
||Diah Sasanawati (Anna)|
|Relationship Management Director||Corporate Communications Manager|
|PT Holcim Indonesia Tbk||PT Holcim Indonesia Tbk|
|Mobile: 0811 860375||Phone Number: +62 21 29861000 ext 8361|
|Mobile: 0813 81818554|
|e-mail: firstname.lastname@example.org||e-mail: diah.sasanawati(at)holcim.com|
|website: www.holcim.co.id||website: www.holcim.co.id|