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

3 source: company data, Indonesia Cement Association

Sales Volume (in Ton)

Semen Indonesia Group

Industry - Domestic

4

BAG 72.5%

BULK 27.5%

BAG 74.5%

BULK 25.5%

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.

SMGR bag sales grew 1% in 2017 and 19% for bulk sales.

source: Indonesia Cement Association

Domestic and SMGR’s Market Consumption (2017)

– 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

5

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: 267 millions 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

7,50 7,50 7,50 7,50

6,75

5,25 5,00

4,75 4,50 4,50

4,25 4,25

Mar 15

Jun 15

Sep 15

Des 15

Mar 16

Jun 16

Sep 16

Des 16

Mar 17

Jun 17

Sep 17

Des 17

Continuous increase in infrastructure budget

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

6

Strategic Projects (2017)

Strategic Projects Capacity Investment Construction Start up commercial

Start Completion

Packing Plant – North Maluku 500,000

ton/year

300,000 (bags)

200,000 (bulk)

IDR 66 Bio January 2017 Q1-2018 Q2-2018

Packing Plant – Bengkulu IDR 75 Bio February 2017 Q1–2018 Q2-2018

Waste Heat Recovery Power

Generation (WHRPG)

– Tuban Plant

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

Packing Plant - Bengkulu Packing Plant – North Maluku

Waste Heat Recovery Power Generation (WHRPG) – Tuban Plant

7

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 Mill 1 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

8

Opportunity Regional Cement Market

9

Financial Summary – 2017

7,06 7,15 5,98

5,20 3,34

28,8% 26,5%

22,2% 19,9%

12,0%

2013 2014 2015 2016 2017

Operating Profit

Operating Profit Operating Profit Margin

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

2,01

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

7,2%

2013 2014 2015 2016 2017

Net Profit

Net Income Net Income Margin

8,10 8,30 7,43 6,96 5,40

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

19,4%

2013 2014 2015 2016 2017

EBITDA

EBITDA EBITDA Margin

10

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

2013 2014 2015 2016 2017

4.083 3.913 3.999

6.260

10.019

2013 2014 2015 2016 2017

0,50 0,47 0,54

0,93

1,93

2013 2014 2015 2016 2017

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

11,10%

20,80%

2013 2014 2015 2016 2017

11

Dividend Pay Out

Dividen Pay Out (DPO)

Earning Per Share (EPS)

12

Value Chain Semen Indonesia

UP STREAM MID STREAM DOWN STREAM

Raw Material Mining

UNITED

TRACTOR

SEMEN

GRESIK

Coal Trading SGG

ENERGI

PRIMA

Packaging

INDUSTRI

KEMASAN

SEMEN

GRESIK

Clinker

&

Semen

SG,

SP,

ST,

TLCC

SEMEN

INDONESIA

BETON

Blast Furnace Slag

(GGBFS)

KRAKATAU

SEMEN

INDONESIA

BUILDING

MATERIAL

Semen Indonesia

INDUSTRI

BANGUNAN

SUPPORTING

Logistic & Distribution

Semen

Indonesia

LOGISTIK

Construction & Fabrication

SWADAYA GRAHA

Information Technology

SINERGI INFORMATIKA SEMEN INDONESIA

Labor Supply & Travel

SWABINA GATRA

Industrial Estate

KAWASAN INDUSTRI GRESIK

Ready Mixed

Concrete

Precast

Cement Based

Non Cement

Based

Aggregate

Trading

SEMEN INDONESIA INTERNATIONAL

Cement Based MORTAR, FIBER CEMENT, BOARD

KOPERASI

WARGA

SEMEN

GRESIK

SEMEN

INDONESIA

DISTRIBUTOR

13

Cost Transformation & Enable Corporate Growth

(Growth) Strategy Refresh

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 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.

Thank You

Head Office:

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

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

Representative Office: The East Tower, 18th floor Jalan Dr. Ide Anak Agung Gde Agung Kav. E3.2 No. 1 Jakarta 12950, Indonesia Telp.: (62-21) – 5261174, 5261175; Fax : (62-21) – 5261176

www.semenindonesia.com