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.