Year

Spot rate (Rp/$)

installed capacity (in million ton
cost per ton (in $)
Total investment in $
Toal investment in Rp
Depreciable value (80%)
Depreciation per year (SLM 10 yr)
Financing
Equity
Debt
Debt financing
From comex
From bank

Investment
Spot rate (Rp/$)
Installed Capacity
Cost per tonne
Total investment in $
Toal investment in Rp
% of investment in Plant (dep)
Depreciable value
Depreciable life
annual Depreciation
Financing
Equity (50%)
Debt (50%)
US debt (from parrent)
Debt from bank (local)
Cost of Capital:
Risk free rate
Credit premium
Cost of Debt
Cost of US$ debt, (rupiah equiv)
Corporate income tax
Cost of Debt after tax
Aft tax Cost of $ debt, (rupiah eq)
Percentage of Debt
Cemex beta
Equity risk premium
Cost of equity
Percentage of equity
WACC

0
1
10000 12621.359223301
20
110
2200
22000000
17600000
1760000
50%
50%
75%
25%

10000
20,000
$110
$2,200,000
22,000,000,000
80%
17,600,000,000
10
1,760,000,000
in usd
11,000,000,000
1,100,000
11,000,000,000
1,100,000
8,250,000,000
825,000
2,750,000,000
Cemex
Semen Indonesia
6%
33%
2%
2%
8%
35%
38.835%
35%
30%
5.2%
24.50%
27.2%
40%
50
1.5
1
7%
6
16.500%
40%
60%
50%
11.9800%
33.26%

Year
0
1
Spot rate (Rp/$)
10000 12621.359223301
Indonesian loan @ 35% for 8 years (millions of rupiah)
Loan principal
2,750,000,000
Interest payment
962,500
Principal payment
95,939
Total payment
1,058,439
Cemex loan @ 10% for 5 years (millions of U.S. dollars)
Loan principal
825
Interest payment
82.50
Principal payment
135.13
Total payment
217.63
Cemex loan converted to Rp at scheduled and current spot rates (millions of Rp):
Scheduled at Rp10,000/$:
Loan principal
Interest payment
825,000
Principal payment
1,351,329
Total payment
2,176,329
Actual (at current spot rate):
Loan principal
Interest payment
1,041,262
Principal payment
1,705,561
Total payment
2,746,823
Cash flows in Rp on Cemex loan (mil
Total actual cash flows
8,250,000
-2,746,823
IRR of cash flows
38.83%
Foreign exchange gains (losses) on Cemex loan (millions of Rp):
Foreign exchange gains (losses) on interest
(216,262)
Foreign exchange gains (losses) on principal
(354,232)
Total foreign exchange losses on debt
(570,494)
Semen Indonesias Pro Forma Income Statement (millions of rupiah)
Year
0
1
Spot rate (Rp/$)
10000
12,621
Installed capacity
Capacity uitilization
Sales volume
Sales Price $
Sales price (Rp)
Sales Revenue (Rp)
Less cash costs
Less other production costs

Rp115,000/ton + inf
Rp20,000/ton + inf

20
0.4
8
58
732,039
5,856,311
920000
160000

Less loading costs

Less shipping costs
Total production costs
Gross profit
Gross margin
Less license fees
Less general & administrative
EBITDA
Less depreciation & amortization
EBIT
Less interest on Cemex debt
Foreign exchange losses on debt
Less interest on local debt
EBT
Less income taxes (30%)
Net income
Net income (millions of US$)
Return on sales
Dividends distributed (50% DPR)
Retained

$2.00/tonne + $ inf
$10.00/tonne + $ inf

2.0% of sales,
8.0% per year (and grow

201,942
1,009,709
2,291,650
3,564,660
60.9%
117,126
468,505
2,979,029
1760000
1,219,029
825,000
570,494
962,500
(1,138,965)
(1,138,965)
(90)
(0.19)
(1,138,965)

Semen Indonesia Capital Budget: Project Viewpoint (millions of rupiah)

Year
0
1
Spot rate (Rp/$)
10000
12,621
EBIT
1,219,029
Less recalculated taxes @ 30%
365,709
Add back depreciation
1760000
Net operating cash flow
2,613,320
Less changes to NWC
240,670
Initial investment
(22,000,000)
Terminal value
Free cash flow (FCF)
(22,000,000)
2,372,650
NPV @ 33.257%
(7,856,012.74)
IRR
18.6%
Semen Indonesias Remittance of Income to Parent Company (millions of rupiah and US$)
Year
0
1
Spot rate (Rp/$)
10000
12,621
Dividend Remittance
Dividends paid (Rp)
Less Indonesian withholding taxes@15%
Net dividend remitted (Rp)
Net dividend remitted (US$)
License Fees Remittance

0
0
0
-

License fees remitted (Rmb

Less Indonesian withholding taxes@5%
Net license fees remitted (Rmb)
Net license fees remitted (US$)
Debt Service Remittance
Promised interest paid (US$)
Less Indonesian withholding tax @ 10%
Net interest remitted (US$)
Principal payments remitted (US$)
Total principal and interest remitted
Capital Budget: Parent Viewpoint (millions of U.S. dollars)
Dividends
License fees
Debt service
Total earnings
Initial investment
1925
Terminal value
Net cash flows
-1925
NPV @ 17.98%
($903.94)
IRR
-1.12%

117,126
5,856
111,270
8.8
82.50
8.25
74.25
135.13
209.38
8.8
209.38
218.2

218.2

2
3
4
5
15929.870864361 20105.66225599 25376.07857552 32028.06033804

ndonesia

in Rp
IRR in other exibit
Semen Indonesia (Rp)
Amount
Financing Proport
Rupiah loan
2,750,000,000
12.50%
Cemex loan
8,250,000,000
37.50%
Total debt
11,000,000,000
50.00%
Equity Total financ 11,000,000,000
50.00%
22,000,000,000
100.00%
33.26%

2
3
4
5
15929.870864361 20105.66225599 25376.07857552 32028.06033804

928,921
129,518
1,058,439

68.99
148.65
217.63

883,590
174,849
###

54.12
163.51
217.63

822,393
236,046
1,058,439

37.77
179.86
217.63

739,777
318,662
### Total payment = installment

19.78
197.85
217.63

(millions of Rp):

689,867
1,486,462
2,176,329

541,221
1,635,108
2,176,329

377,710
1,798,619
2,176,329

197,848
1,978,481
2,176,329

1,098,949
2,367,915
3,466,864

1,088,160
3,287,494
4,375,654

958,480
4,564,190
5,522,670

633,669
6,336,691
6,970,360

-3,466,864

-4,375,654

-5,522,670

-6,970,360

(409,082)
(881,453)
(1,290,535)

(546,940)
(1,652,385)
(2,199,325)

(580,770)
(2,765,571)
(3,346,341)

(435,821)
(4,358,210)
(4,794,031)

2
15,930

3
20,106

4
25,376

5
32,028

20
0.5
10
58
923,933
9,239,325
1495000
260000

20
0.6
12
58
1,166,128
13,993,541
2332200
405600

20
0.6
12
58
1,471,813
17,661,751
3031860
527280

20
0.6
12
58
1,857,627
22,291,530
3941418
685464

328,155
1,640,777
3,723,932
5,515,393
59.7%
184,787
831,539
4,499,067
1760000
2,739,067
689,867
1,290,535
928,921
(170,256)

511,922
2,559,612
5,809,334
8,184,207
58.5%
279,871
1,399,354
6,504,982
1760000
4,744,982
541,221
2,199,325
883,590
1,120,846

(170,256)
(11)
(0.02)
(170,256)

1,120,846
56
0.08
560,423
560,423

665,499
3,327,495
7,552,134
10,109,617
57.2%
353,235
1,942,793
7,813,589
1760000
6,053,589
377,710
3,346,341
822,393
1,507,145
395,631
1,111,514
44
0.06
555,757
555,757

2
15,930
2,739,067
821,720
1760000
3,677,347
139,028

3
20,106
4,744,982
1,423,495
1760000
5,081,487
436,049

4
25,376
6,053,589
1,816,077
1760000
5,997,512
289,776

3,538,319

4,645,438

5,707,736

865,149
4,325,744
9,817,774
12,473,756
56.0%
445,831
2,674,984
9,352,941
1760000
7,592,941
197,848
4,794,031
739,777
1,861,285
558,385.62
1,302,900
41
0.06
651,450
651,450

5
32,028
7,592,941
2,277,882
1760000
7,075,059
626,314 15 day DSO and net change
21,274,102
27,722,847

lions of rupiah and US$)

2
15,930

0
0
0
-

3
20,106

560,423
84,063
476,360
24

4
25,376

555,757
83,364
472,393
19

5
32,028

651,450
97,717
553,732
17

184,787
9,239
175,547
11.0

279,871
13,994
265,877
13.2

353,235
17,662
335,573
13.2

445,831
22,292
423,539
13.2

68.99
6.90
62.09
148.65
210.73

54.12
5.41
48.71
163.51
212.22

37.77
3.78
33.99
179.86
213.86

19.78
1.98
17.81
197.85
215.65

11.0
210.73
221.8

24
13.2
212.22
249.1

19
13.2
213.86
245.7

17
13.2
215.65
246.2

debt financed locally is exclu

221.8

249.1

245.7

664.23
910.4

6% additional in foreign proj

Using PPP

Cost
After-tax Cost
Component Cost
35.00%
24.50%
3.06%
38.84%
27.18%
10.19%
40.00%

40.00%
WACC

20.00%
33.26%

ayment = installment= loan amt/PVIFA(35%8yr)

y DSO and net change in it

nanced locally is exclueded

ditional in foreign project