• New board appointments
• Tuban first line in operation, and second line on track for 2015
• Total dividend of Rp 90 per share declared which represent 73% pay-out ratio
Jakarta, Tuesday, May 6th 2014, Le Meridien Hotel, Jakarta.
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 final dividend of Rp 53 per share, making a total dividend to be disbursed from 2013 earnings of Rp 90 per share, representing a payout ratio of 73%. The interim dividend of Rp 37 per share had been distributed in 2013.
Committed to market development
President Director of Holcim Indonesia, Eamon Ginley, while acknowledging a slower economy, industry cost escalation and a reduction in profitability in 2013, viewed the past year as a short-term pause within a medium term growth trend. “Holcim is focused on positioning ourselves for the future as Indonesia’s fundamentals remain compelling,” he said. “Between 2012 and 2015 we will have grown our production capacity by almost 40 per cent to 12.5 million tonnes and this will ensure we remain a competitive and strong industry participant,” he said. A number of contracts were signed in 2013 to enable Holcim to fulfil this commitment. As a result, the company will firstly, double capacity at the new Tuban plant site from 1.7 million tonnes to 3.4 million tonnes. Secondly, completion of a large waste management facility later in 2014 will triple Holcim’s capability of this valuable service business. Thirdly, the company has continued to raise its profile, with a new distribution centre in Kalimantan and a further new cement distribution terminal in Lampung. A strategic supply agreement for a stone quarry in Java commenced in 2013, supporting the company’s fast-growing ready mixed concrete operation, which increased shipments to customers by 20 per cent in 2013. Not least, wider use of rail and the installation of new palletising facilities have already contributed to improve Holcim’s logistics and supply capability, while alleviating traffic loads on the roads into areas served by the company.
Eamon Ginley noted a weaker Rupiah, a higher national fuel bill and cost inflation – as primary factors contributing the company’s reduced profits. Translation costs on the company’s foreign currency debt to fund the expansion doubled in 2013. “However, since the turn of the year we have seen strong capital inflows with the Rupiah gaining significant ground and our focus is on meeting sound domestic demand growth,” he said. “The cash flow from our new capacity coming on stream in the next two years will substantially address finance costs,” he added.
After two years of extraordinary volume gains in 2011 and 2012, cement industry growth was cut back during 2013, with substantial new industry capacity taking time to be absorbed. Despite these circumstances, Holcim was able to maintain brand strength resulting in sales revenue growth of 8 per cent to Rp 9.7 trillion. This result was against a backdrop of 5.6 per cent volume growth for the total cement industry, down from 14 and 18 per cent volume growth nationwide in the past two years. Noted Ginley, “The considerable demand for homes and the realisation of vital infrastructure spending, will require substantial commitment from the building materials industry. We are ideally positioned as a well-established incumbent with room to accommodate these needs, and a proven track record of delivering on our expansion plans.”
In keeping with its long-term approach to the Indonesian market, the company places innovation at the heart of its business strategy. New products in 2013 included concrete for pre-cast products, pervious concretes to address flood risk and facilitate rainwater harvesting, and wider use of SpeedCrete, an early strength answer to the capital’s rain damaged roads specifically requested by Jakarta’s Governor’s office. “Innovation receives a warm welcome in our markets,” said Eamon Ginley. “Our Solusi Rumah team reached out to 10,000 homeowners with a unique 13 city roadshow, spreading knowledge about our products and applications.”
In 2013, Indonesia’s architects and designers responded with over 450 entries to the global Holcim Awards for Sustainable Construction. A regional round of these prestigious awards will be held in Indonesia in 2014. Innovation was also a recurring theme at Holcim plants which continued to make energy efficiency gains and process improvements conserving fuel, materials and controlling emissions. Meanwhile The company’s CEO Awards also celebrated a large number of intelligent employee ideas for cost saving and productivity improvement.
Society and the Environment
Among community activities in 2013, a unique integrated farming programme at Tuban, East Java and the work with Posdaya community centres at Narogong, West Java and Cilacap, Central Java, stood out. A private public partnership programme to raise awareness about ozone depleting gases was a success.
Holcim was recipient of a string of awards including the highest environmental awards from the Indonesian Government. These included:
- GOLD PROPER award for Cilacap Plant, for the 4th successive year
- GREEN PROPER award for Narogong Plant for a 3rd year in a row
- Green Industry Award from Ministry of Industry, another 3rd successive year
- National Energy Efficiency Award, Ministry of Energy and Mineral Resources
- Green Company Award SWA Magazine and Sri Kehati
- Best Green CEO Award and Social Business innovation Award, Warta Ekonomi
- Sustainable Business Award for the Environment
- Gold for ‘Best Technology Innovation’ from Indonesia’s Contact Centre Association
- ‘Best of the Best’ Award, Forbes Indonesia
- CSR Award, Sindo Newspaper
At the AGM today, Mr. Paul Hugentobler formally submitted his resignation and stepped down as President Commissioner, completing his duties as the Holcim Executive Committee member for Asia Pacific. Mr. Hugentobler led Holcim’s initial entry into the Indonesian market and, on behalf of the Board of Directors and the Board of Commissioners, Mr Ginley expressed thanks to Mr. Hugentobler’s for his leadership. He also thanked Mr. Rully Safari who stepped down from the position of Director with responsibility for Human Resources.
Shareholders welcomed the appointment of Mr. Hugentobler’s successor, Mr. Ian Thackwray as President Commissioner, Mr. Daniel Bach as Commissioner and Mr. Kent Carson to the Board of Directors in the role of Chief Financial Officer.
Mr. Thackwray has the responsibility to represent the Holcim Executive Committee for East Asia Pacific, and formerly held the position of CEO of Holcim Philippines. Mr. Bach, also in a regional executive role, has previous experience in Indonesia, serving as Technical Director for Holcim Indonesia ten years ago. Mr. Carson contributes extensive experience in finance, capital markets, information technology and accounting, and was formerly CFO of Holcim in Canada.
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 85,000 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: email@example.com||e-mail: diah.sasanawati(at)holcim.com|
|website: www.holcim.co.id||website: www.holcim.co.id|