Corporate Presentation - August 2018

PT Semen Indonesia (Persero) Tbk.

And the Prospect of Indonesia Cement Industry

2

Total

107.4 Mio Ton

Domestic Capacity 2017

2017

SMGR market share 2017 was 40.8% despite of only 33.4% capacity share

Cement Companies in Indonesia

3source: company data, Indonesia Cement AssociationNote: The market data is not final since one small player has not updated its sales volume.

Sales Volume - August 2018 (in Ton)

Semen Indonesia Group

Industry - Domestic

4

BAG69.3%

BULK30.7%

BAG73.8%

BULK26.2%

Domestic Demand SMGR Sales

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

Bulk cement growth is higher than bag cement in the last two years. Bulk demand growth up to July 2018 was 12.3% while demand for bag was 2.0%

source: Indonesia Cement Association

Domestic and SMGR’s Market Consumption (up to August 2018)

– Type of Cement

Housing: ± 90% Cement based industry: ±10%

Ready-mix (infrastructure): ± 60% Fabricator (pre-cast, fiber cement,

cement based industry): ± 35% Projects (mortar, render): ± 5%

3,6%2,5%

1,5%-1,4%

5,5%

13,6%15,5%

2,2% 2,0%

14,5%

2013 2014 2015 2016 2017

Bag Bulk

Demand Growth by Type

5

WEST JAVA, DKI JAKARTA,BANTEN

CENTRAL JAVAEAST JAVA

SMGR is still the dominant player in all regions other than West Java & Jakarta where the competition is more intense

SMGR MS39.6%

SMGR MS32%

SMGR MS59%

SMGR MS17.4%

SMGR MS41.8%

21.6% of total national demand

2.2% of total national demand

8.1% of total national demand

26.5% of total national demand

16 % of total national demand

5.6% of total national demand 13.6% of total

national demand

6.4% of total national demand

SMGR MS66%

SMGR MS41.7%

Market Share (“MS”) by Geography – up to August 2018

6

2018 - KEY STRATEGY

Cost Transformation & Enable Corporate Growth

(Growth) Strategy Refresh

Centralize Procurement

Centralize Marketing

Supply Chain Optimization

7

Financial Summary 1H-2018

7,06 7,15 5,98

5,20 3,34 1,70

28,8%26,5%

22,2% 19,9%

12,0% 12,8%

2013 2014 2015 2016 2017 1H 2018

Operating Profit

Operating Profit Operating Profit Margin

8,10 8,30 7,43 6,96

5,40 2,60

33,1% 30,8%27,5% 26,6%

19,4% 19,5%

2013 2014 2015 2016 2017 1H 2018

EBITDA

EBITDA EBITDA Margin

5,37 5,56 4,56 4,52

2,01 0,97

21,9% 20,6%16,9% 17,3%

7,2% 7,3%

2013 2014 2015 2016 2017 1H 2018

Net Profit

Net Income Net Income Margin

8

Cost of Revenue Breakdown 1st Half 2018

20,9%

15,9%

10,0% 8,6% 8,0% 7,0%3,7% 3,5% 2,6% 1,9% 0,7%

4,3%

13,0%

COST STRUCTURE

9

Balance Sheet

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

Debt/EBITDA (x) Net Debt/Equity

4.213

5.032

3.989

2.847

3.665

3.105

2013 2014 2015 2016 2017 1H 2018

4.083 3.913 3.999

6.260

10.019 10.312

2013 2014 2015 2016 2017 1H 2018

0,5 0,47 0,54

0,93

1,93 1,93

2013 2014 2015 2016 2017 1H 2018

-0,60% -0,45%0%

11,10%

20,80%

23,53%

2013 2014 2015 2016 2017 1H 2018

10

Key Factors Supporting Domestic Cement Consumption

Infrastructure Development

Commercial & Industrial

High growth in retail, commercial and institutional sector in urban and semi-urban area

High growth industry segment (precast, light brick, cement fiber, pave, ready mixed concrete)

Potential Market

The fourth largest population in the world: 267millions people (2017)

Demographic bonus: rapidly growing productive population in Indonesia

Cement Consumption per Capita (2016)

Interest Rate

Average (ex China) = 462 kg

155,9 154,7

256,1 269,1

388,3 410,4

2013 2014 2015 2016 2017 2018

Source: Ministry of Finance

Continuous increase in infrastructure budget (Rp Tn)

BI policy on interest rate is expected to remain low which drives demand for housing loan

LTV Policy

Bank Indonesia loosening macro-prudential policies in the form of an increase in Loan to Value Ratio

7,50 7,50

6,75

5,25 5,00 4,75 4,50 4,50 4,25 4,25 4,50

5,25 5,50

Sep15

Dec15

Mar16

Jun16

Sep16

Dec16

Mar17

Jun17

Sep17

Dec17

May18

June18

Aug18

11

Integrated Cement Plant 5 location

Kiln 17 Unit

Cement Mill 29 Unit

Grinding Plant 4 location

Cement Mill 6 Unit

Warehouse 30 location

Packing Plant 30 location

Sea Port 17 location

Kiln 1 unit

Cement Mill1 unit

Kiln 6 unit

Cement Mill 9 unit

Kiln 5 unit

Cement Mill 11 unit

Grinding Plant

1 unit Cement Mill

Kiln 4 unit

Cement Mill 6 unit

Grinding Plant

3 unit Cement Mill

Our facilities

Grinding Plant

1 unit Cement Mill

Grinding Plant

1 unit Cement Mill

Kiln 1 unit

Cement Mill 2 unit

12

Opportunity Regional Cement Market

13

Dividend Pay Out

Dividen Pay Out (DPO)

Dividend Per Share (DPS)

14

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 ORSOLICITATION, RECOMMENDATION OR INVITATION OF ANY OFFER TO BUY OR SUBSCRIBE FOR ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OFOR 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 INFORMATIONCONTAINED IN THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHERPERSON, 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 risksuncertainties 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.

Thank You

Head Office:

Gedung Utama Semen IndonesiaJalan Veteran, Gresik 61122, East Java – Indonesia

Phone: (62-31) 3981731 -2, 3981745Fax: (62-31) 3983209, 3972264

Representative Office:

The East Tower, 18th floorJalan Dr. Ide Anak Agung Gde Agung Kav. E3.2 No. 1Jakarta 12950, IndonesiaTelp.: (62-21) – 5261174, 5261175; Fax : (62-21) – 5261176

www.semenindonesia.com