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source: Indonesia Cement Association source: Indonesia Cement Association

Bag cement still represent the largest portion of Indonesia cement consumption

Domestic Sales in Java v.s. Outside of Java

18.9 21.5 24.6 25.3 26.2 27.5 28.2 28.9 30.5 30.9 6.7 21.9 26.5 30.3 32.6 33.7 34.5 33.4 37.4 39.0 38.9 8.0

• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0%

• 10.0

20.0 30.0 40.0 50.0 60.0 70.0 80.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q'20 Outside Java Java Growth

source: Indonesia Cement Association

34.2 39.2 44.1 45.7 46.9 47.5 46.8 49.4 50.8 51.0 10.9 6.6 8.8 10.8 12.2 13 14.5 14.8 16.9 18.8 18.7 3.7

• 15.0%
• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 10 20 30 40 50 60 70 80 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q'20

Cement demand growth was dominated by the growth of bulk cement to support infrastructure projects

Bag Vol Bulk Vol Growth Bag Growth Bulk Bulk Portion

in million ton in trillion IDR in million ton

74.63% 25.37% BULK BAG

86 114 146 184 178 290 317 388 410 415 419

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

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53.3% 25.9% 5.6% 3.2% 3.0% 2.7% 2.5% 2.1% 1.5% 0.3% 44.8% 22.7% 7.7% 6.6% 6.9% 3.5% 1.6% 1.6% 1.6% 0.4% SMGR (SMIG + SBI) INTP Conch Bosowa Merah Putih Baturaja Jui Shin Siam Cement STAR Semen Kupang Market Share Capacity Share

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2020 2019 YoY (% ) 2020 2019 YoY (% ) 2020 2019 YoY (% ) YEAR TO DATE FEBRUARY MARCH

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Q1 2020 Q1 2019 Chg YoY (a) (b) (a:b) SMGR Sales Volume (ton) Domestic 7,872,294 7,518,380 4.7% Export 1,020,607 828,685 23.2% TLCC Sales Volume (ton) Domestic 303,722 252,246 20.4% Export 172,429 153,150 12.6% Total Group SMGR (ton)

9,369,052 8,752,460 7.0%

Revenue 8,580 8,127 5.6% Cost of Revenue 5,876 5,913

• 0.6%

Gross Profit 2,704 2,214 22.2% Operating Expense 1,430 1,122 27.5% Operating Income 1,274 1,092 16.7% EBITDA 2,022 1,611 25.5% Finance Income (Cost) (552) (637)

• 13.4%

Profit Before Tax 713 454 56.9% Net Profit Attributable to Owners of Parent Entity 446 268 66.5% Margin Gross Profit Margin 31.5% 27.2% 4.3% Operating Profit Margin 14.9% 13.4% 1.4% EBITDA Margin 23.6% 19.8% 3.7% Net Profit Attributable to Owners of Parent Entity Margin 5.2% 3.3% 1.9% Ratios ROE 5.3% 3.4% 1.9% Net Debt to Equity 77.1% 82.8%

• 5.7%

Debt to EBITDA (x) 3.2 4.7

• 1.6

EBITDA/Interest (x) 3.7 2.4 1.3 in billion IDR

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26,948 26,134 27,814 30,688 40,368 8,580

• 0.1%
• 3.0%

6.4% 10.3% 31.5% 5.6%

• 10.0%

• 5,000

2015 2016 2017 2018 2019 Q1 '20 Revenue Revenue Growth 10,646 9,856 7,960 9,331 12,714 2,704 39.5% 37.7% 28.6% 30.4% 31.5% 31.5%

• 2,000

2015 2016 2017 2018 2019 Q1 '20 Gross Profit Gross Profit Margin 7,473 6,962 4,904 6,577 8,699 2,022 27.7% 26.6% 17.6% 21.4% 21.5% 23.6%

• 1,000

2015 2016 2017 2018 2019 Q1 '20 EBITDA EBITDA Margin 4,521 4,522 1,621 3,079 2,392 446 16.8% 17.3% 5.8% 10.0% 5.9% 5.2%

• 500

2015 2016 2017 2018 2019 Q1 '20 Net Profit Net Profit Margin

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