January 2018

think about the

ENVIRONMENT

2
Cement companies in Indonesia

Domestic Capacity (2017)

1. Semen Indonesia 35.5 mt

2. Indocement TP 24.9 mt
3. Lafarge Holcim Indonesia 14.5 mt
4. Semen Merah Putih 7.5 mt
5. Semen Bosowa 7.0 mt
6. Semen Anhui Conch 4.5 mt
7. Semen Baturaja 3.8 mt
8. Semen Pan Asia 1.9 mt
9. Siam Cement Group 1.8 mt
10. Semen Jui Shin 1.5 mt
11. Semen Serang (Haohan) 1.2 mt
12. Semen Jakarta 1.0 mt
13. Semen Hippo (Sun Fook) 0.6 mt
2017 14. Semen Kupang 0.3 mt
• Design Capacity : 106.3 mt 15. Semen Puger 0.3 mt
• Production Capacity : 74.0 mit
• Domestic Growth : 7.5% TOTAL 106,3 mio ton
• Domestic Utilization: 63%
•Supply
 Domestic : 66.5 mt
 Export :
Clinker : 1,8 mt
*) Source: SMGR intemal calculation
Cement : 1,1 mt
3
SMGR’s Sales Volume
NET ASP - DOMESTIC CEMENT
(Rp Ribu/Ton) SALES VOLUME
800 3400.0
3200.0
750 3000.0
2800.0
700 731 2600.0
2,670
2400.0
650 2200.0
2000.0
1800.0
600
1600.0

Dec-16

Mar-17

May-17

Nov-17
Jan-17
Feb-17

Apr-17

Dec-17
Jun-17

Sep-17
Jul-17
Aug-17

Oct-17
ACTUAL ACTUAL

Nov-17 Dec-17 Dec-16 Chg (%) 2017FY 2016FY Chg(%)

Domestic 2,566,901 2,359,967 2,182,947 8.1 27,091,728 25,682,143 5.5

Export 169,638 170,607 48,676 250 1,870,862 599,510 212

TOTAL 2,736,539 2,530,574 2,231,623 13.4 28,962,590 26,281,653 10.2

TLCC
Domestic 166,757 174,300 173,299 0.5 1,832,563 1,760,000 4.1
Export 46,400 45,000 72,800 (38.1) 342,080 776,000 (55.9)
TOTAL 2,949,696 2,749,874 2,477,722 (10.9) 31,137,233 28,817,653 8
Semen Indonesia Group

source: Company data

4
 Indonesia Cement Sales Volume
Nov-17 Dec-17 Dec-16 Chg (%) 2017FY 2016FY Chg(%)

Domestic 2,566,901 2,359,967 2,182,947 8.1 27,091,728 25,682,143 5.5

Export 169,638 170,607 48,676 250 1,870,862 599,510 212

TOTAL 2,736,539 2,530,574 2,231,623 13.4 28,962,590 26,281,653 10.2

TLCC
Domestic 166,757 174,300 173,299 0.5 1,832,563 1,760,000 4.1
Export 46,400 45,000 72,800 (38.1) 342,080 776,000 (55.9)
TOTAL 2,949,696 2,749,874 2,477,722 (10.9) 31,137,233 28,817,653 8
Semen Indonesia Group

Source: Company data, Indonesia Cement Association

5
domestic market consumption (2017) – type of cement

• Ready-mix (infrastructure): ± 60%

BULK • Fabricator (pre-cast, fiber cement, cement based industry): ± 35%
25.5%
• Projects (mortar, render): ± 5%

BAG
74.5% • Housing: ± 90%
• Cement based industry: ± 10%

source: Indonesia Cement Association

Bag Bulk

Retail (residential) sector is still the largest consumer of cement in Indonesia

6
Key Factors Supporting Domestic Cement Consumption

 INFRASTRUCTURE DEVELOPMENT
 
 HOUSING
 Population Growth
Infrastructure Spending Planned for 2015 – 2019
(USD Bn)  Rising per Capita Income

113 433  Mass urbanization

106 
 CEMENT CONSUMPTION 2016 (KG/CAPITA)
172 42 2000 1648
1500
1000
1000 763
617
458 399 262 248 244 163
Central Regional SOEs Private Total 500

Govt Govt 0


 COMMERCIAL & INDUSTRIAL Cement Consumption per Capita (kg)

 High growth in retail, commercial and average (ex china) = 459kg

institutional sector in urban and semi-urban area 

 DEMOGRAPHIC BONUS
 High growth industry segment (precast, light brick,
cement fiber, pave, ready mixed concrete) Rapidly Growing
Productive Population


 POTENTIAL MARKET
The fourth largest population in the world: 258
millions people (2015)
7
Strategic Projects (2017)
Construction Start up commercial
Strategic Projects Capacity Investment
Start Completion
500,000
Packing Plant Maluku Utara IDR 66 Bio January 2017 Q1-2018 Q2-2018
ton/year
300,000 (bags)
Packing Plant Bengkulu IDR 75 Bio February 2017 Q1–2018 Q2-2018
200,000 (bulk)

Waste Heat Recovery Power

30.6 MW IDR 574 Bio Q2-2016 Q1-2018 Q2-2018
Generation

Proyek Packing Plant Maluku Utara Proyek Packing Plant Bengkulu

Proyek Waste Heat Recovery Power Generation (WHRPG) - Pabrik Tuban

8
 Our facilities
Kiln 1 unit
Integrated Cement Plant 4 location
Cement Mill
1 unit Kiln 15 Unit
Cement Mill 26 Unit
Grinding Plant 3 location
Cement Mill 4 Unit
Grinding 1 unit Cement
Plant Mill Warehouse 30 location
Packing Plant 22 location
Sea Port 12 location

Kiln 5 unit
Cement Mill 8 unit

Kiln 5 unit Kiln 4 unit

Cement Mill 11 unit Cement Mill 6 unit
Grinding 3 unit Cement
Plant Mill
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Opportunity Regional Cement Market

10
Supply-Demand Cement in Asia Pacific

2017E Export
Design Cap. Production Cap. Consumption
(mtpa) (Import)
China 3794,4 2390,6 2380,5 10,1
India 396 313,7 311,7 2
Indonesia 106,3 74 69 5
Vietnam 91,5 74,6 57,5 17,1
South Korea 71,6 53,1 50,2 2,9
Thailand 60,5 36,4 31,3 5,1
Pakistan 48 39,7 30,8 8,9
Malaysia 41,3 23,6 22,9 0,7
Philippines 34,2 26 26,5 -0,5
Australia 13,2 8,7 9,5 -0,8
Myanmar 10,5 8 9,8 -1,8
Laos 10 6 3,3 2,7
Source : Global Cement, Bloomberg, Digital Cement 11
think about the
ENVIRONMENT

12
Financial Summary – 9M17
In IDRbn 9M17 9M16 Change EBITDA

Revenue 20.552 19.082 7,7%

Cost revenue (14.503) (11.509) 26,0%
Gross profit 6.049 7.574 -20,1%
Operating expenses (3.633) (3.621) 0,3%
Operating income 2.416 3.953 -38,9%
EBITDA 3.956 5.130 -22,9%
Pre-tax profit 1.471 2.964 -50,4%
Net profit after minority 1.460 2.929 -50,2%
EPS (Rp) 246 494 -50,2%
Ratio Net profit
EBITDA margin 19,2% 26,9% -7,6%
Gross margin 29,4% 39,7% -10%
Interest coverage - x 7,6 20,3 (13)
Cost ratio -88% -79% -9%
Net debt to equity 0,23 0,08 15%
Debt to equity 0,32 0,18 14%
Debt to EBITDA 1,76 0,74 1,02
Receivable turnover - days 60 55 5

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Balance Sheet
Cash balance (Rpbn) Total debt (Rpbn)

Debt/EBITDA (x) Net Debt/Equity

14
Likuiditas dan Solvabilitas
CASH CURRENT RATIO
4,926
4,070 3,964
(Dalam Rp Miliar)

2.21
2,834 1.88
2,674 1.60
1.27

2013 2014 2015 2016 9M 2017 2013 2014 2015 2016

Audited Audited Audited Audited Audited Audited Audited Audited

INTEREST BEARING DEBT TO EBITDA

DEBT
(Dalam Rp Miliar)

9,279 0.90

6,260
0.50 0.54
0.47
4,083 3,913 4,001

2013 2014 2015 2016 9M 2017 2013 2014 2015 2016

Audited Audited Audited Audited Audited Audited Audited Audited
15
15
Dividend Pay Out

Dividen Pay Out (DPO)

Earning Per Share (EPS)

16
think about the
ENVIRONMENT

17
Value Chain Semen Indonesia
UP STREAM MID STREAM DOWN STREAM
Ready Mixed SI
Raw Material Mining UTSG Concrete BETON
CONSTRUCTION

Coal Trading
SI SG, MATERIAL Precast
ENERGI Clinker
SP,
& Aggregate
Semen ST,
Packaging IKSG Cement
TLCC Based SIIB
BUILDING
Blast Furnace Slag MATERIAL Non Cement
KSI
(GGBFS) Based

SUPPORTING
Information Construction & Swadaya Logistic & SI
SISI
Technology Fabrication Graha Distribution LOGISTIC

Labor Supply & Swabina

Trading SII
Industrial Estate KIG Gatra
Travel

Cement
Based MORTAR, FIBER CEMENT, BOARD

18
2018 - KEY STRATEGY

Supply Chain Optimization

(Growth)
Strategy Centralize Marketing
Refresh
Centralize Procurement

Cost Transformation & Enable Corporate Growth

19
 Thank You
IMPORTANT NOTICE
THIS PRESENTATION IS NOT AND DOES NOT CONSTITUTE OR FORM PART OF, AND IS NOT MADE IN CONNECTION WITH, ANY OFFER FOR SALE OR SUBSCRIPTION OF OR
SOLICITATION, RECOMMENDATION OR INVITATION OF ANY OFFER TO BUY OR SUBSCRIBE FOR ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF
OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT, COMMITMENT OR INVESTMENT DECISION WHATSOEVER.
THE SLIDES USED IN THIS PRESENTATION ARE STRICTLY CONFIDENTIAL AND HAVE BEEN PREPARED AS A SUPPORT FOR ORAL DISCUSSIONS ONLY. THE INFORMATION
CONTAINED IN THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER
PERSON, IN WHOLE OR IN PART.
This presentation includes forward-looking statements, which are based on current expectations and forecast about future events. Such statements involve known / unknown risks
uncertainties and other factors, which could cause actual results to differ materially from historical results or those anticipated. Such factors include, among others:
● economic, social and political conditions in Indonesia, and the impact such conditions have on construction and infrastructure spending in Indonesia;
● the effects of competition;
● the effects of changes in laws, regulations, taxation or accounting standards or practices;
● acquisitions, divestitures and various business opportunities that we may pursue;
● changes or volatility in inflation, interest rates and foreign exchange rates;
● accidents, natural disasters or outbreaks of infectious diseases, such as avian influenza, in our markets;
● labor unrest or other similar situations; and
● the outcome of pending or threatened litigation.
We can give no assurance that our expectations will be attained.
DISCLAIMER
The information contained in this report has been taken from sources which we deem reliable. However, none of PT Semen Indonesia (Persero) Tbk and/or its affiliated companies and/or
their respective employees and/or agents make any representation or warranty (express or implied) or accepts any responsibility or liability as to, or in relation to, the accuracy or
completeness of the information and opinions contained in this report or as to any information contained in this report or any other such information or opinions remaining unchanged after
the issue thereof.
We expressly disclaim any responsibility or liability (express or implied) of PT Semen Indonesia (Persero) Tbk, its affiliated companies and their respective employees and agents
whatsoever and howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by
any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither PT Semen Indonesia (Persero) Tbk, its affiliated companies or their
respective employees or agents accepts liability for any errors, omission or mis-statements, negligent or otherwise, in the report and any liability in respect of the report or any inaccuracy
therein or omission therefrom which might otherwise arise is hereby expresses disclaimed.

Head Office: Representative Office:

Gedung Utama Semen Indonesia The East Tower, 18th floor
Jalan Veteran, Gresik 61122, East Java – Indonesia Jalan Dr. Ide Anak Agung Kav. E3.2 No. 1,
Phone: (62-31) 3981731 -2, 3981745 Jakarta 12950, Indonesia
Fax: (62-31) 3983209, 3972264 Telp.: (62-21) – 5261174, 5261175;
Fax : (62-21) – 5261176

www.semenindonesia.com
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