PT GUDANG GARAM Tbk
PUBLIC EXPOSE
Jakarta Stock Exchange
Wednesday, 12 November 2003
• Industry overview 2003
• Third Quarter 2003: Financial and
Operating Performance
• Outlook
Industry Overview
(volume billion sticks)
Year on Year: 11.4% (equiv.
22 bn sticks) decline
198.8 199.7
Q3 on Q3 1%
177.0 (equiv. 1.5 bn
sticks) decline
150.6 149.8
136.8 135.4
2000 2001 2002 2003
FY Q3
Shift back to SKM despite excise increases
Total Annual production in
Billion sticks
9 months
196 191 196 199 199 177 137 135
28 35 42 42 44 44 44 42
72
65
58 58 56 56 56 58
0
'97 '98 '99 '00 '01 '02 Q3 '02 Q3 '03
SKM SKT
Pre crisis, Shift back to SKM
SKM dominated
the industry
(all figures : billion sticks unless % indicated) Sept-02 Sept-03
• Total kretek market down 1% 136.8 135.4
Gudang Garam volumes up 47.9 50.4
Gudang Garam market share up 35% 37.2%
• Total SKM up 2% 77.1 78.7
Gudang Garam volumes up 38.8 41.9
Gudang Garam market share up 50.4% 53.2%
• Total SKT down 5% 59.7 56.7
Gudang Garam volumes down 9.1 8.5
Gudang Garam market share steady 15% 15%
All figures compiled from GAAPRI statistics
Small producers lose share : GG makes slight improvement
All figures : % 2001 2002 Q3 02 Q3 03
Gudang Garam 33.8 34.0 35.0 37.2
Djarum 17.2 19.2 18.9 19.1
Sampoerna 19.4 21.8 21.4 19.1
Bentoel 0.7 0.7 0.7 0.5
Others 29.0 24.3 23.9 24.1
All figures compiled from GAAPRI statistics
GG gains continue
2001 2002 Q3 02 Q3 03
Gudang Garam 47.3 49.3 50.4 53.3
Djarum 10.3 11.8 10.9 13.9
Sampoerna 12.4 13.0 13.4 14.0
Others 28.9 24.9 24.3 18.1
Smaller producers lose share
All figures compiled from GAAPRI statistics
GG share steady in upper SKT market which is stabilising
2001 2002 Q3 02 Q3 03
Gudang Garam 16.2 14.8 15.2 14.9
Djarum 26.0 28.5 29.3 26.2
Sampoerna 28.3 32.7 31.7 26.1
Others 28.9 23.6 23.4 32.3
Swings reflect price sensitivity & variable buying power
at low end of market
All figures compiled from GAAPRI statistics
Third Quarter Financial &
Operating Performance
in million Rupiah
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
1999 2000 2001 2002 2003
Sales - September Sales - End Year
Source: Company annual reports, published unaudited figures
(unaudited figures)
Sep-03 Sep-02
Rp B % of sales Rp B % of sales
Sales 17,904.4 100% 16,069.4 100%
Cost of Sales (14,429.8) -80.6% (12,442.5) -77.4%
Gross Profit 3,474.6 19.4% 3,626.9 22.6%
Operating Expenses (1,117.2) -6.2% (987.0) -6.1%
Operating Profit 2,357.4 13.2% 2,639.9 16.4%
Impact of Excise Duty Increase S,G+A expenses up
(freight, marketing,
fees & depreciation)
Unaudited Rp bn 3Q02 3Q01 Increase
Sales 17,904.4 16,069.4 11.4%
Excise & VAT 10,503.8 8,397.5 25.0%
Raw
Direct Labor
materials
2% (2%)
22% (26%)
Others 3%
(3%)
Excise duty
& VAT 73%
(68%)
3Q03 (3Q02 for comparative purposes stated in brackets)
(unaudited figures in Rp billion) Sep-03 Sep-02
% of sales % of sales
Sales 17,904.4 100% 16,069.4 100%
Gross Profit 3,474.6 19.4% 3,626.9 22.6%
Operating Profit 2,357.5 13.2% 2,639.9 16.4%
Net interest (230.6) -1.3% (291.3) -1.8%
FX Gain / (Loss) (13.4) -0.1% (2.1) 0.0%
Tax & Minorities (640.8) -3.6% (711.7) -4.4%
Miscellaneous Income 4.2 0.0% 4.2 0.0%
(856.0) -4.8% (997.3) -6.2%
Net Income 1,501.5 8.4% 1,642.6 10.2%
Outlook
• Economy: positive signs
• Budget 2004: Government deficit
target reduced
• Non excise tax revenues up 112%
October 2003 vs October 2002
• Economic Growth estimates 2004
revised up 4.5% 4.8%
Recent increases:
SKT – Gudang Garam Merah (Banderol Price)
January 2001 January 2002 January 2003
Rp. 2,450 Rp. 4,000 Rp. 4,800
SKM – Gudang Garam International 12 sticks (Banderol Price)
January 2001 January 2002 January 2003
Rp. 3,400 Rp. 5,000 Rp. 5,900
• Traditional brands continue to enjoy good
support
• GG lights growth: as expected
• Last price increase was March 2003
• Ongoing Brand Strategy: add further choice
• 12 stick variants SSS series launched
• Nusantara
PT GUDANG GARAM Tbk
PUBLIC EXPOSE
Jakarta Stock Exchange
Wednesday, 12 November 2003
