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PUBLIC
EXPOSE
November 30, 2023
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PUBLIC EXPOSE
• GG Profile
• Management
• Premium Quality Products
• Corporate Sustainability
• Cigarette Industry & GG Volume Development
• Company Financials
• Outlook
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GG PROFILE
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B OA R D O F There have been
no changes to the
D I R EC TO R S Board of Directors
President Director since 2022
SUSILO WONOWIDJOJO
Vice President Director
INDRA GUNAWAN WONOWIDJOJO
Independent
Director Director
Director Director Director Director Director
ISTATA SLAMET SONY
HERU HERRY ANDIK HAMDHANY
TASWIN BUDIONO SASONO
BUDIMAN SUSIANTO WAHYUDI HALIM
SIDDHARTA RAHMADI
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B OA R D O F There were no changes to
the Board of Commissioners
C O M M I S S I O N E RS
President Commissioner
JUNI SETIAWATI WONOWIDJOJO
Independent Commissioner Commissioner Independent Commissioner
FRANK WILLEM LUCAS MULIA GOTAMA
VAN GELDER SUHARDJA HENGDRATSONATA
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P R E M I U M Q UA L I T Y • Comprehensive coverage P RO DU C T S Notes: The numbers stated in the product description are the number of sticks within the packaging 6
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S U S TA I N A B L E B U S I N E S S S T R AT E G Y
continues to be effective
SUSTAINABILITY
4 STRATEGIC PILLARS
ASPECTS DELIVERING VALUE TO
QUALITY & CHOICE PEOPLE DEVELOPMENT RESPONSIBILITY
STAKEHOLDERS
Brand value, variety and President Commissioner Financial discipline, timely
Fair remuneration, career and
freshness of products, easy
J U N I Sskills
E T development,
I A W A T I Wa O NOWIDSound
J O J earnings,
O dividends disclosure, efficient
ECONOMIC good
to obtain at affordable prices and cost management management of debt and
place to work
working capital
Transparent engagement Operational compliance
ENVIRONMENTAL Resource efficient operations Health and Safety at work on environmental with all environmental
management regulations
Social infrastructure and
Long term commitment to support including education An investment approach to
SOCIAL Responsible marketing
CSR and religious activities for improving community living
surrounding communities
Oversight by the Board of
Complete Code of Conduct,
Commissioners and
GOVERNANCE Ethical business focus labour relations and trading Integrity and accountability
Independent Audit
policy framework
Committee
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C O R P O R AT E S U S TA I N A B I L I T Y
Corporate Social Responsibility, Company Health & Safety
/ Environmental Responsibility
President Commissioner
J •U NOngoing
I S E T I Aprogrammes:
W A T I W O N Osocial
W I D J needs,
OJO education, beliefs, greening
• Health, Safety & Environment (HSE) standards maintained (SMK3)
• Electricity/water usage reduced / progress continues on energy
management
• Constant air quality and waste management monitoring
• BLUE PROPER rating from Ministry of Environment & Forestry
Dhoho Airport Project
Continues as scheduled and is expected to be commissioned in 2024
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CIGARETTE INDUSTRY &
GG VOLUME DEVELOPMENT
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Proportional mix analysis:
I N D U ST RY VO LU M E Full year 2020 to 2022
(SOURCE: NIELSEN CURRENT MARKET DATA) Jan-Sep 2022 and 2023
249.3 bn Plus total sticks for each period
240.3 bn
220.2 bn 3.7% gain
9.1% gain
14.2% decline 4.5%
4.6%
187.4 bn 48.6%
SPMT 4.5% 22.7% 6.3% gain 171.1 bn
20.6%
18.9% 8.7% decline
SKT 4.6%
4.6%
4.6%
22.1% 21.4% 22.3%
22.3%
SKM LT 23.6% 26.2%
21.5%
21.5%
20.6%
53.0% 52.8% 51.3%
SKM HT
51.6% 48.6%
2020 2021 2022 Jan-Sep 2022 Jan-Sep 2023
Notes: Figures may not foot due to rounding 10
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INDUSTRY VOLUME: Category change Jan-Sep 2023 vs Jan-Sep 2022
(SOURCE: NIELSEN CURRENT MARKET DATA)
Overall Decline 8.7% Price increases as buying power remained stagnant and
cost of living has gone up
SKT Increase 7.4% Downtrading to value priced products, given weak buying
power
SKM HT Decline 14.0% Higher excise duty affects the entire SKM segment:
SKM HT remains the most popular segment at 48.6% of the
total cigarette market
SKM LT Decline 12.5% SKM LT continues to lose overall market share down from
23.6% in FY 2020 to 20.6% for 9 months 2023
SPMT Decline 8.9% Less than 5% of the total market and declining in parallel
with entire market in 2023
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GG VOLUME DEVELOPMENT
BILLION STICKS 25.1% decline in
91.1 bn volume Jan-Sep (YOY),
9.0 9.8% 82.5 bn primarily in SKM HT
SKT
8.6 10.4%
63.1 bn
SKM HT 6.6 10.4%
47.3 bn
79.8 87.6%
72.5 87.8% 6.3 13.2%
55.4 87.7%
40.6 86.0%
SKM LT 2.3 2.5% 1.4 1.7% 1.2 1.8% 0.4 0.8%
2021 2022 Jan-Sep 2022 Jan-Sep 2023
Notes: Figures may not foot due to rounding 12
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COMPANY
FINANCIALS
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GUDANG GARAM PERFORMANCE HIGHLIGHTS
(UNAUDITED) 9 MONTHS DATA
Jan - Sep
Comments
Figures in Rp billion 2022 2023
Sales revenue 93,919 81,749 -13.0% due to a 25.1% decrease in volume as we implemented
President Commissioner
price increases
JUNI SETIAWATI WONOWIDJOJO
Cost of sales (86,230) (70,331) -18.4% reflecting the decrease in cost of excise duty in line with
reduced sales volume
Operating expenses (5,736) (5,439) -5.2% was primarily due to the decrease in employee
compensation and to a lesser degree lower transportation,
freight, advertising & promotion expenses
PBIT 1,944 5,752 Improvement in profitability driven by higher sales price increases
catching up with successive large increases in excise duty since
Profit 1,498 4,457 2020
Volumes (billion sticks) 63.1 47.3 -25.1% as price increases where buying power remain stagnant
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GUDANG GARAM COST OVERVIEW
In Trillion Rupiah with most recent period to period growth shown as %
Cost of Sales 97.1 tr 110.6 tr 113.6 tr
1.7
4.9
14.3 (1.6%)
Others 14.6 86.2 tr
4.3
14.1
Raw Materials 1.0
10.9 70.3 tr
7.1
8.1 (26.2%)
91.1 97.6 7.1%
Excise 78.7
74.3
55.1 (25.9%)
2020 2021 2022 Jan-Sep 2022 Jan-Sep 2023
Notes: Figures may not foot due to rounding 15
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TOBACCO SECTOR EXCISE and PROFITABILITY
Gudang Garam Cost and Jan - Sep
Margin Analysis Comments
2022 2023
Excise duty, VAT & Cig tax 74,349 55,110
President Commissioner -25.9% in line with lower sales volumes
(Rp bn) JUNI SETIAWATI WONOWIDJOJO
Excise duty, VAT & Cig tax as % 86.2% 78.4% Excise is still largest portion of cost of sales
of Cost of sales
Gross Margin 8.2% 14.0% Solid improvement, reflecting more price
increases since second half of last year
Operating Margin 2.3% 7.6% Operating expenses well managed coupled
with improvement in gross margin
Net Margin 1.6% 5.5% Margin improvements have trickled down to
the bottom line
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Audited Year End 2022
FINANCIAL POSITION: (Unaudited) 30 September 2022 and 2023
ASSETS
Rp billion Year End 2022 30 September 30 September YOY 30 September
2022 2023 2022/2023 (Δ%)
Cash 4,407
President Commissioner 4,528 4,237 (6.4%)
JUNI SETIAWATI WONOWIDJOJO
Receivables 2,181 2,452 2,050 (16.4%)
Inventories 47,640 42,996 43,712 1.7%
Other Current Assets 1,217 1,252 1,635 30.6%
Total Current Assets 55,445 51,229 51,634 0.8%
Fixed & Other Non-Current Assets 33,117 32,473 35,039 7.9%
Total Assets 88,563 83,702 86,674 3.6%
Notes: Figures may not foot due to rounding 17
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Audited Year End 2022
FINANCIAL POSITION: (Unaudited) 30 September 2022 and 2023
LIABILITIES & EQUITY
Rp billion Year End 30 September 30 September YOY 30 September
2022 2022 2023 2022/2023 (Δ%)
Short Term Loans 10,048 2,383 7,121 198.8%
President Commissioner
Payables (including taxes) J U N I S E T I A 1,883
W A T I W O N O W I D1,772
JOJO 1,357 (23.4%)
Excise Duty, VAT & Cigarette Tax Payable 16,266 19,893 15,847 (20.3%)
Other Liabilities 2,510 3,197 2,345 (26.7%)
Total Liabilities 30,707 27,245 26,669 (2.1%)
Shareholders Equity incl. Retained Earnings 57,856 56,457 60,004 6.3%
Total Liabilities & Shareholders’ Equity 88,563 83,702 86,674 3.6%
Total Liabilities/Equity 53.1% 48.3% 44.4%
Notes: Figures may not foot due to rounding 18
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OUTLOOK
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MACRO OUTLOOK 2024
The Domestic Consumer Tobacco Sector
• Household spending: buying power still • Competition: continues to intensify
soft for a smaller market in 2023
• Central bank defends Rupiah with upward • Significant excise duty increases
interest rate adjustments during 2020-2022 still impacting
• Inflation has eased, despite rising fuel and sector; excise duty increases set at
food prices the range of 11% for SKM and 6% for
SKT for 2023 and 2024
2020 2021 2022 Year to October • The fact that excise duty has been
2023 announced for two years in a row
gives a more ‘stable landscape’ for
1.68% 1.87% 5.51% 1.80% producers
Source: Badan Pusat Statistik (BPS)
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COMPANY OUTLOOK 2024 – key themes
Healthy return to profitability Staying focused & realistic
• Margins have been rebuilt: a catch up via Equitable growth strategy:
more frequent price increments since second • protecting shareholder returns
half of 2022 versus 2020-2021 price
• delivering customer satisfaction
adjustments
• Maintaining a balance between an
• GG continues to dominate in SKM HT sector
acceptable level of profitability and
where it enjoys brand strength
market share
• Indonesian fundamentals: large domestic
market – managing for viable growth in
sectors where company has proven track Well positioned to capitalize on upside
record, strong distribution and retail loyalty potential in chosen markets
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PUBLIC
EXPOSE
November 30, 2023
THANK YOU
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