Installed Capacity

Total

108.1 Mio Ton

SMGR market share 2018 was 39.4% despite of only 33.2% capacity share

2018

Semen Indonesia

SBI (ex Holcim Indonesia)

33.2%

23.0%

13.7%

4.9%

6.8% 6.8%

3.6%

1.4% 1.7% 1.8%0.3%

2.9%

39.4%

25.5%

15.4%

4.8%3.5% 3.1% 3.1%

1.9% 1.9%1.0% 0.3% 0.1%

SMGR INTP SMCB Conch Bosowa Merah Putih Baturaja Jui Shin SiamCement

STAR SemenKupang

Others

Capacity Share Market Share

SMIG is the market leader in Indonesia with a market share of 39.4% in 2018 despite having only

33.2% capacity share. The top three players in Indonesia’s cement industry dominates 80.3% of

domestic market share. With the acquisition SBI. our market share will increase by around 15%.

SMIG SBI

• Established in August 1957

• One of the largest cement players in SE Asia with a design

capacity of 38.2 mtpa of cement and a 40% market share in

Indonesia

• Production facilities in Indonesia’s 3 major islands namely

Java, Sumatera and Sulawesi. Also internationally, in

Vietnam

• State Owned Enterprise with 51% shares owned by the

Government of Indonesia

• Publicly listed in IDX since 1991 with a market capitalization of

$4.8bn

TLCC

70.00%

PT Semen

Indonesia

Aceh

52.28%

SBI

80.60%

PT Semen

Kupang

Indonesia

99.48%

PT Semen

Padang

99.99%

PT

Semen

Tonasa

99.99%

PT Semen

Gresik

99.96%

PT Semen Indonesia Logistic

73.65%

PT Sinergi Mitra Investama

97.00%

PT Semen Indonesia International

85.00%

PT Sinergi Informatika Semen Indonesia

85.00%

PT Semen Indonesia Beton

99.99%

PT Semen Indonesia Industri Bangunan

99.99%

Industri Kemasan Semen Gresik

60.00%

United Tractor Semen Gresik

55.00%

PT Swadaya Graha

25.00%

PT Krakatau Semen Indonesia

50.00%

PT Kawasan Industri Gresik

65.00%

Domestic

institutions

11%

Foreign

institutions

37%Indonesian

Government

51%

Domestic

individuals

1%

1995 2005 2012 2013

SG became the first SOE that

became a Publicly Listed Company.

SP, ST and SG remained stand-

alone companies.

SG, SP and ST were consolidated as Semen Gresik Group; where SP

and ST stood under SG

Transformed into a strategic holding

(PT. Semen Indonesia Tbk)

Redesigning Governance.

Restructuring to achieve better synergy results

Acquiring Thang Long Cement

Company (TLCC Vietnam) as a part

of the “Development Growth Plan”

SOE Structure

Timeline

Event

2019

The first SOE to ever acquire a

global corporation, namely LH Indonesia

Strategy1. Company

Growth2. Company Survival 3. Consolidation 4. Regional Leader

5. Centralized Operation & Integrated Functions

6. Strengthening Position as Indonesia’s Market Leader

6. Strategic Holding5. Strategic Holding4. Functional

Holding3. Functional

Holding2. Operating

Holding1. Operating

Company

1991

Through the current structure of Strategic Holding. SMIG has succeeded in acquiring LHI to

strengthen the company's future position without using

the State Budget.

BAG

73%

BULK

27%

32.8 34.239.2

44.1 45.7 46.9 47.5 46.8 49.4 50.8

6.2 6.6

8.8

10.812.2 13 14.5 14.8

16.9 18.830.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

-5.0%

20

10

0

60

50

40

30

80 40.0%

Bulk Vol

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Bag Vol Growth Bag Growth Bulk Bulk Portion

CAGR Bulk: 13.1%

70 CAGR Bag: 5% 35.0%

Cement demand growth was dominated by the growth of bulk

cement to support infrastructure projects.

86114

146

184 178

290317

388410 415

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Infrastructure Budget

18.9 21.5 24.6 25.3 26.2 27.5 28.9 30.5

26.530.3 32.6 33.7 34.5 33.4 37.4 39.0

21.94.6%

17.6%

14.4%

5.5%3.5% 3.5%

28.2-0.6%

7.6%

4.8%

2010 2011 2012 2014 2015 2017 20182013

Outside Java Java

2016

Growth

CAGR:6.6%

source: Indonesia Cement Association

source: Indonesia Cement Association

Bag cement still represent the largest portion of

Indonesian cement consumption

BAG72.54%

BULK27.46%

Bag Bulk

Bulk cement growth is

higher than bag

cement in the last two

years. Bulk demand

growth in 2018 was

11% while demand for

bag was 2.7%.

Retail (residential)

sector is still the largest

consumer of cement in

Indonesia.

Government infrastructure

budget is significantly

increasing since 2015 along

with the 5 years National

Strategic Projects.

source: Indonesia Cement Association

source: Indonesia Cement Association

February 2019 composition

*SBI MS 23%

*SBI MS 5.9%

*SBI MS 1.3%

*SBI MS 0.4%

*SBI MS 16.3%*SBI MS 5.9%*SBI MS 18.9%

*SBI MS 19.6%

source: Indonesia Cement Association

source: Indonesia Cement Association

PRESIDENT DIRECTOR

HENDI PRIO SANTOSO

Born in Jakarta, February 5, 1967

Double Major: Bachelor of Business Administration in

University of Houston and Economics in University of Texas,

USA

Career History:

• Director of Investment Banking at JP Morgan Securities

Indonesia (2004-2007)

• Director of Finance at PT PGN (Persero) Tbk (2007-2008)

• President Director of PT PGN (Persero) Tbk (2008-2017)

DIRECTOR OF MARKETING AND SUPPLY CHAIN

ADI MUNANDIR

Born in Sukabumi, July 10, 1981

Bachelor in Electrical Power Engineering from Universitas

Indonesia

Master in Strategic Management from Universitas Indonesia

Career History:

• President Commissioner at PT Solusi EnergyNusantara

• Commissioner at PT Nusantara Regas• Executive Officer - Strategic Management Office PT PGN

(2013-2015)

• Head of Strategic Management Division at PT PGN (Persero) Tbk (2015-2016)

• Head of Marketing at PT PGN (Persero) Tbk (2016- 2017)

DIRECTOR OF HR AND LEGAL

AGUNG YUNANTO Born in Bandung, May 7, 1962

Bachelor in Civil Engineering from Institut Teknologi

Bandung

Master of Management at IPMI & Monash University

Career History:

• President Commissioner at PT Jasa Marga Surabaya in

(2013-2017)

• General Manager of Human Capital at PT Wijaya KaryaBeton (2014-2017)

DIRECTOR OF PRODUCTION

BENNY WENDRY

Born in Padang, May 1, 1969

Bachelor in Chemical Engineering from Institut Teknologi

Bandung

Master in Management from Universitas Gadjah Mada

Career History:

• Commercial Director at PT Semen Padang (2011-

2014)

• Finance Director at PT Semen Padang (2014)• President Director at PT Semen Padang (2014-2017)

DIRECTOR OF FINANCE

DODDY SULASMONO DINIAWAN

Born on February 27, 1967

Bachelor in Management Economics from Universitas Katolik

Parahyangan

Master of Financial Management from Universitas Padjadjaran

Career History:

• Executive Vice President – Division Head of Corporate Business

Risk of PT BNI (Persero) Tbk. (2015-2016).

• Executive Vice President – CEO Jakarta Kota Region Office PT

BNI (Persero) Tbk.(2016)

• Director of Finance And Human Resources PTRekayasa Industri (2016-2017)

• Director of Business Strategy and Business

Development of PT Semen Indonesia (Persero) Tbk. (2017-

2018)

DIRECTOR OF ENGINEERING AND PROJECT

TRI ABDISATRIJO

Born in Situbondo, September 05, 1967

Bachelor in Chemical Engineering from Institut Teknologi

Sepuluh Nopember

Career History:

• GM of Project Specialist OOTC at PT Semen Indonesia

(Persero) Tbk (2013-2014)

• GM of Energy, Materials and Environment at PTSemenIndonesia (Persero) Tbk (2014)

• Commercial Director at PT Semen Tonasa (2014-2017)

DIRECTOR OF STRATEGIC BUSINESS AND

ENTERPRISE DEVELOPMENT

FADJAR JUDISIAWAN

Born in Surabaya, May 09. 1971

Bachelor in Industrial Engineering from Institut Teknologi

Sepuluh Nopember

Master in Management from Universitas Gadjah Mada

Career History:

• Assistant Deputy for Construction Services of the

Ministry of SOEs (2014-2015)

• Assistant Deputy of Construction Business,

Transportation Facilities and Infrastructure of the

Ministry of SOE (2015-2017)

• Deputy of Construction Business, TransportationFacilities and Infrastructure of the Ministryof SOE

(2017)

• Finance Director at PT Semen Indonesia (Persero)Tbk (2017-2018)

1

Striving to optimize our supply chain managementwith “least cost to serve” principle to achievelogistic and transportation cost efficiency.

Centralizing marketing function at holding level toeliminate double brand, reduce negative marginand at the end optimize net corporate margin.

Centralizing procurement function on strategic andsignificant items to leverage our bargaining power,standardizing product quality as well asguaranteeing continuous supply.

Reducing operating expenses, reducing costredundancy among cement subsidiaries,optimizing Rembang plant utilization andmaximizing synergy among subsidiaries and SoE.

Total Production Volume

30.6 mil ton

Total production decreased by 0.8% YoY

Total Sales Volume

33.6 mil ton

Total Sales Volume increased by 6.6%YoY (combined clinker + cement).

Revenue

IDR 30.69 trl

Total Revenue increased by 10.3% YoY

Cement Plant Utilization

87.0 %The Company recorded a better

utilization rate than the averagecement industry which only reached around 65%

Operating Expenses

IDR 4.45 tril

Total OPEX decreased by 12.9% YoY

COGS

IDR 635,463/ton

Total COGS / ton increased by 0.9% YoY

Net Income

IDR 3.08 trl

Net Income increased by 89.9% YoY

EBITDAMargin

21.4 %

EBITDA Margin increased by 3.8% YoY

8

Full year 2018 Revenue increased 10.3% YoY inline with the 5.6% increase in sales volume.

COGS grew 7.6% but lower than revenue growth related to SMGR initiatives:o Centralizing coal procurement on holding level to gain better pricing, standardized quality and 3 months fixed price.

o Rerouting distribution network to ensure margin optimization and least cost to serve.o Reducing clinker factorso Operating Waste Heat Recovery Power Generator in Tuban Plant

Performance Overview – 2018

Rp Billion 9M18 9M17Chg YoY

(%)FY18 FY17

Chg YoY

(%)

Revenue 21,455 20,552 4.4% 30,688 27,814 10.3%

Cost of Revenue 15,116 14,503 4.2% 21,357 19,854 7.6%

Gross Profit 6,339 6,049 4.8% 9,331 7,960 17.2%

Operating Expense 3,004 3,819 -21.3% 4,450 5,108 -12.9%

Operating Income 3,336 2,230 49.6% 4,881 2,851 71.2%

EBITDA 4,682 2,956 58.4% 6,577 4,904 34.1%

Profit Before Tax 2,744 2,002 37.1% 4,105 2,254 82.1%

Net Profit Attributable to Owners of Parent Entity 2,087 1,460 42.9% 3,079 1,621 89.9%

Margin

Gross Profit Margin 29.5% 29.4% 0.1% 30.4% 28.6% 1.8%

EBITDA Margin 21.8% 14.4% 7.4% 21.4% 17.6% 3.8%

Net Profit Margin 9.7% 7.1% 2.6% 10.0% 5.8% 4.2%

Cash Balance (IDRbn) Total Interest Bearing Debt (IDRbn)

Debt/EBITDA (x) Net Debt/Equity Gross Debt/Equity

EBITDA/Interest

4,213

5,032

3,989

2,847

3,638

5,246

2013 2014 2015 2016 2017 2018

4,083 3,913 3,999

6,260

10,019 9,864

2013 2014 2015 2016 2017 2018

22.1820.20 19.14

6.48 6.86

2014 2015 2016 2017 2018

0.5 0.5 0.5

0.9

2.0

1.5

2013 2014 2015 2016 2017 2018

-0.6% -0.5% 0.0%

11.2%

22.8%20.9%

2013 2014 2015 2016 2017 2018

16% 15%

20%

35%32%

2014 2015 2016 2017 2018

1

Create a dominant role in Indonesia with scale benefits along the value chain. Reinforcing SMIG‘s

leadership with a combinedmarket share of 55%

Long-term attractive market.

3

Generate significant operational synergies in centralized

procurement, logistics and maintenance.

Combined entities will be one of the largest domestic coal

consumers, demanding 9-10 mtof coal per annum.

2

Catalyze an enhanced strategy for SMIG, driving change and

innovation in Indonesia. Leveraging the ready-mix and aggregate

business with a combined volumeof 4.3 million m3 in ready mix

plants.

*Based on ytd 2018 (SIB 2.5 million m3; HC Beton 1.8 million m3)

o 4 integrated cement plants with a total design capacity of 14.8 mtpa in Java (3 locations) and Aceh (1 location), a mothballed grinding station at Ciwandan (0.7 mtpa) and terminals in Sumatera and Kalimantan.

o SBI also owns a leading RMX business and an expansivequarry operation in Indonesia.

o SMIG acquired 80.6% shares of Holcim Indonesia at USD 917 million and followed by Mandatory Tender Offer.

o Implied equity value (100%) of US$1,137 million.

o Implied EV/Capacity of USD117/tonne:• the estimated greenfield investment cost for new plants in

Indonesia of USD150-180/tonne• Lafarge Holcim divestments in Asia of USD130-177/tonne.

o The completion of acquisition is subject to the fulfilment of certain conditions and regulatory approval.

o The transaction was financed through syndicated bank loans up to USD 1,137 million to cover up to 100% Holcim Indonesia shares.

SBI intergrated plants

SMIG intergrated plants

The addition of SBI into SMIG has propelled us into becoming one

of the 15 biggest cement companies in the world.

Rank CompanyCapacity

(mt/yr)Plants

1 Lafarge Holcim (Switzerland) 345.2 220

2 CNBM (China) 221 -

3 Anhui Conch (China) 209 -

4 Heidelberg Cement (Germany) 185.4 141

5 Jidong Development (China) 130 -

6 Sinoma (China) 100 -

7 Shansui (China) 93 -

8 Cemex (Mexico) 91.6 61

9 UltraTech Cement (India) 91.4 39

10 China Resources (China) 74 -

11 Taiwan Cement Corp (Taiwan) 71 -

12 Votorantim (Brazil) 70.8 59

13 Italcementi (Italy) 68 -

14 InterCement (Brazil) 53.5 42

15 CRH (Ireland) 50.5 54

16 Buzzi Unicem (Italy) 49.2 37

17 Eurocement (Russia) 47.2 19

18 Dangote Cement (Nigeria) 43.8 12

19 Siam Cement Group 40.3 10

20 Taiheiyo Cement 39.8 15

21 Semen Indonesia 35.9 7

22 VICAT Group (France) 34.9 16

23 Jaypee (India) 33 -

24 VICEM (Vietnam) 28.8 12

25 Titan Cement 22.8 13

26 Fars and Khuzestan 19.6 13

27 Cementos Argos 18.8 15

28 Dalmia Bharat 17.4 7

29 OYAK Group 16 7

• The largest cement company in Southeast Asia

• The 5th biggest cement company in Asia

• “The Big 15” Cement Companies in the World

• The strongest market reach in Indonesia

• A more expansive product portfolio• Better HR and system capabilities

Melayani Negeri Lebih Baik!

35.9 mt (SMIG) + 14.8 mt (SBI)

= 50.7 mt

PP Lampung

GP Ciwandan

LHOKNGA PLANT

Cap : 1.3 Mt/Yr

NAROGONG PLANT

Cap : 5.1 Mt/Yr

CILACAP PLANT

Cap : 2.9 Mt/Yr

PP Lhoksumawe

PP Belawan

PP Pontianak

PP Dumai

PP Batam

GP Kuala Indah

Integrated Cement Plant (ICP) : 3 Units

Grinding Plant (GP) : 1 Units

Packing Plant (PP) : 6 Units

Port : 2 Units

DC (Warehouse) : 8 Units

TUBAN PLANT

Cap : 3.4 Mt/Yr

Source: Internal SMIG

Source: Internal SMIG

TUBAN PLANT

Cap SI: 14.7 Mt/YrCap LHI : 3.4 Mt/YrPort : 40,000 DWT

INDARUNG PLANT

Cap : 9.4 Mt/Yr

GP Dumai

GP Gresik

PP Lhoksumawe

PP Malahayati

PP Batam

Tl Bayur Port

PP Lampung

PP Pontianak

PP Samarinda

PP Banjarmasin

PP Balikpapan

PP Bitung

PP Palu

PP Mamuju

Biringkassi Port

PP Makassar

PP Kendari

PP Sorong

PP Ambon

PP Banyuwangi

PP Celukan Bawang

PANGKEP PLANT

Cap : 7.4 Mt/Yr

PP Belawan

PP Tj Priok

PP Ciwandan SP

PP Ciwandan SI

PP Maluku Utara

GP Ciwandan

PP Bengkulu

REMBANG

PLANT

Cap : 3 Mt/Yr

LHOKNGA PLANT

Cap : 1.3 Mt/Yr

NAROGONG PLANT

Cap : 5.1 Mt/Yr

CILACAP PLANT

Cap : 2.9 Mt/Yr

PP Lhoksumawe

PP Belawan

PP Pontianak

PP Dumai

PP Batam

GP Kuala Indah

PP Lampung

GP Cigading

IMPORTANT NOTICE

THIS PRESENTATION IS NOT AND DOES NOT CONSTITUTE OR FORM PART OF. AND IS NOT MADE IN CONNECTION WITH. ANY OFFERFOR SALE OR SUBSCRIPTION OF OR SOLICITATION. RECOMMENDATION OR INVITATION OF ANY OFFER TO BUY OR SUBSCRIBE FORANY 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 ORALDISCUSSIONS ONLY. THE INFORMATION CONTAINED IN THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOURINFORMATION 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.