Info Memo

26 May 2022

Tickers

IDX: SMGR

Market

Capitalization

As of 31 March 2022 IDR 39,445 billion

Issued Shares

5,931,520,000

Share Price

As of 31 March 2022 IDR 6,650

Hi/Lo 1Q 2022 IDR 7,400 IDR 6,300

Shareholder

Composition

Government of

Indonesia: 51,01%

Public: 48,99%

Investor Relations

PT Semen Indonesia

(Persero) Tbk.

Email:

investor.relations@sig.id

1st Quarter of 2022 Results (Audited)

Highlights

  • SIG recorded better performance in the 1st Quarter of 2022 with a revenue increase of 0.7% YoY, mainly contributed by the increases in selling price and domestic sales volume despite total sales volume experienced a decrease of 5.8%.
  • In the midst of coal price hike, cost of revenue can be maintained to increase only 3.2% YoY, combined with finance cost decreased by 25.2% due to lower interest bearing debt balance, resulting in a 10.7% increase in net income attributable to owners of parent entity.
  • Current liabilities recorded IDR 651 billiion higher while equity recorded IDR 454 billion lower compared to 31 December 2021 position, due to dividend payment allocation of IDR 1,024 billion based on 2022 AGMS resolution.

Financial Highlights

Sales Volume

Disclaimer

This document contains certain financial information and results of operation, and may also contains projections, plans, strategies, and objectives of SIG that are not statements of historical fact which would be treated as forward-looking statements within the meaning of applicable law. Forward looking statements are subject to risk and uncertainties that could cause actual events or future results to be materially different than expected or indicated by such statements. No assurance can be given that the results anticipated by SIG, or indicated by any such forward looking statements, will be achieved.

The financial information provided herein is based on SIG consolidated financial statements in accordance with Indonesian Financial Accounting Standards.

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PT Semen Indonesia (Persero) Tbk.

First Quarter of 2022 Results (Audited)

PT Semen Indonesia (Persero) Tbk ("SIG" or "the Company") has announced its Audited Consolidated Financial Statement as of March 31, 2022. The First Quarter of 2022 Audited Consolidated Financial Statements were prepared in accordance with the Indonesian Financial Accounting Standard with an "Unqualified" opinion and have been submitted to Indonesian Stock Exchange (IDX).

Sales Volume

Domestic sales volume experienced an increase of 1.6% along with the positive growth of national demand. Regional sales recorded 29.0% lower YoY as the Company is focusing more on domestic market and to preserve coal availability. Thus, total sales volume in the 1st Quarter of 2022 was 5.8% lower YoY with domestic sales volume portion from total sales volume increased 6% compared to last year.

Consolidated Statements of Profit or Loss and Other Comprehensive Income

  • Revenue
    In 1Q 2022, the Company recorded total revenue of IDR 8,137 billion, a 0.7% increase compared to the same period last year. Such increase was contributed by the 7.0% increase in revenue/ton and improved domestic sales portion which grew from 75.6% to 81.6%.
  • Cost of Revenue & Operating Expenses

The Company managed to control the increase in cost of revenue which only increased by 3.2% YoY to IDR 5,881 billion, with the cost of revenue per ton only increase 9.6% compared to the 1st quarter of 2021. Such increase was mainly related to a 28% increase in fuel & energy cost, relatively lower compared to average coal market price which

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recorded increase 88% YoY as the Company was able to secure the coal supply at the Domestic Market Obligation (DMO) cap price. Meanwhile, raw material cost was recorded lower 28.5% YoY in line with the lower sales volume as well as 1% lower average clinker factor achieved in 1st quarter 2022. The Company was also able to maintain other manufacturing overhead, which remained relatively flat in the reporting period.

The Company posted operating expenses of IDR 1,228 billion in the 1st quarter of 2022, decreased by IDR 75 billion compared to the same period last year mainly from the lower promotion & distribution cost as well as salaries & wages.

  • Profitability
    Despite the challenge of hypercompetition and coal price volatility, with the improved revenue per ton and the efforts to manage fuel cost increase, SIG was able to minimize the impact to profitability reduction during the 1st Quarter of 2022. Finance cost recorded 26.2% lower YoY, in line with the lower interest bearing debt balance resulting in the increase in net profit for the year attributable to owners of the parent entity by 10.7% compared to the last year.

Financial Ratios

Notes:

Gross Profit Margin is Gross Profit to Revenue

Operating Margin is Operating income (including other operating income/expenses) to Revenue EBITDA margin is EBITDA (including other operating income/expenses) to Revenue

Net Profit margin is Profit for the Year Attributable to the Owners of Parent Entity to Revenue

Return on Equity is LTM Profit for the Year Attributable to the Owners of Parent Entity to Equity Attributable to the Owners of Parent Entity

Return on Assets is LTM Profit for the Year Attributable to the Owners of Parent Entity to Total Assets

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Summary of Consolidated Statements of Financial Position

  • Current Assets increased by 2.9% or IDR 442 billion compared to 31 December 2021 contributed by the increase in inventories.
  • Non-currentAssets decreased by 0.7% or IDR 432 billion mainly from a decrease of net Fixed Assets by 1.0% YoY, mainly related to the increase of Accumulated Depreciation and Depletion that is higher than the amount of additional Fixed Assets in 2021.
  • Current Liabilities increased by 4.4% or IDR 630 billion compared to 31 December 2021 largely due to the increase in tax payable and dividend payable based on 2022 AGMS resolution.
  • Non-currentLiabilities remained relatively flat compared to 31 December 2021.
  • Total Equity decreased 1.0% or IDR 401 billion YoY mainly from the decrease in unappropriated retained earnings related to dividend payment allocation based on 2022 AGMS resolution.

Summary of Consolidated Statements of Cash Flow

  • Cash Flows from Operating Activities decreased by 71.6% in 1Q 2022 in line with the increase of payments to suppliers.
  • Cash Flows used in Investing Activities decreased by 13.3% or IDR 40 billion mainly due to placement of short-term investments compared to the same period last year.
  • Cash Flows used in Financing Activities decreased by 72.3% or IDR 425 billion due to lower debt repayment in the 1st quarter of 2022 compared to last year as the Company was focusing on dividend payment in April 2022.

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Debt Profile

Total Interest-Bearing Debt as of 31 March 2022 recorded at IDR 18,503 billion, a 0.7% decrease compared to the 31 December 2021 position mainly due to a decrease in lease liabilities of IDR 81 billion. There was no significant debt repayment during the 1st quarter of 2022, as the Company was focusing the cash flow for dividend payment on April 2022. The composition of the total interest-bearing debt comprised of 49% of bank loan, 38% of corporate bonds, 4% of finance lease, and 9% of temporary syirkah funds.

  • Net Debt to Equity and Net Debt to EBITDA remained flat on 31 March 2022 compared to 31 December 2021 position.
  • EBITDA to Interest improved by 0.35x in line with the lower finance cost in the 1st quarter 2022.

Milestones

In line with its commitment in sustainability, SIG and its subsidiaries were awarded by numerous event up to April 2022, including:

  • Proper Biru (compliance) from Government of West Sumatra Province to PT Semen Padang;
  • Serambi Awards 2022 from Serambi Indonesia Newspaper to PT Solusi Bangun Andalas for "Corporate with Consistent Environmental Care" category;
  • Zero Accident Award from Governor of East Java to PT United Tractor Semen Gresik;

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Disclaimer

PT Semen Indonesia Persero Tbk published this content on 26 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 May 2022 02:29:21 UTC.