20250701_SMCB_Public Expose_31910149_lamp3.pdf

IV. Attendance
    Public Expose was attended by analysts, investors, medias, and other participants. A total of 102
    participants attended the session.
    Public Expose attendance list is attached in this report.

V. Question and Answer

   1. Sofya Tresnawati, Radar Berita Nasional, What is the Company’s CAPEX plan in 2025 and
      the Company’s long-term plan of business strategy?

       In 2025, capital expenditure (CAPEX) of PT Solusi Bangun Indonesia Tbk will be focused
       selectively on prioritized projects, particularly the completion of production facilities for
       export market in Tuban which is currently in commissioning phase. Aside from that,
       CAPEX will be allocated for supporting routine annual maintenance activities in order to
       ensure operational reliability and efficiency. In the long-term, the Company remains
       committed to a strategy based upon four key pillars, operational excellence, asset and
       sustainable optimization, human resource development, and product innovation. The
       Company will also expand its export market through Taiheiyo’s support in the strategic
       network, while introducing competitive low-carbon cement product.

       The Company’s waste management business through Nathabumi remains as a main
       priority, especially through partnerships with regional governments to become RDF
       offtaker as an alternative to replace coal, that aligns with the objective to create efficient
       and sustainable business that creates positive impact for the environment and society. To
       protect operational performance, the current plant utilization rate stands at above 70%,
       exceeding the national average of below 60%. On that matter, another part of CAPEX will
       be allocated to ensure sustainability and efficiency of the production facilities, including
       the development of jetty infrastructures to support export activity to the United States.

       The Company is also currently exploring new export opportunities as a part of short-term
       initiatives that will potentially give bigger advantage for the business. For mid-term and
       long-term initiatives, the Company initiates technology collaboration with Taiheiyo to
       develop new products and services that can create new market opportunities and
       increase revenue. On the other hand, SBI will strengthen its aggregate business as a part
       of sustainable business diversification strategy.

   2. Siti Salamah, Jurnal Nusantara. What kind of marketing strategy is the Company
      planning to adopt to increase income and face competitors?

       Currently, the Company applies adaptive, data-based marketing strategies in synergy
       with SIG. We utilize SIG’s national institutional network to access retail and bulk markets,
       with a focus on distribution efficiency. That means, the Company can provide a better and

   faster service within a region and will have bigger opportunities in optimized direct
   delivery of products to the customer.

   Essentially, maintaining local market sustainability, especially in areas near production
   facilities, is the key to maintaining profitability.

3. Dimas Andi Sadewo, Kontan. There are several points.

   a. How much is SMCB’s sales and net profit targets in 2025?

   Regarding net profits, the current projection depends on the market condition. However,
   if the scenario is similar to 2024 or even better, we are confident that the net profit will
   increase, alongside efficiency and focused marketing strategy.

   b. Is weak cement demand still an SMCB challenge this year?

   The risk of weak cement demand is still a challenge for the Company in 2025. Based on
   the 2024 condition, the Company did not experience seasonal demand pattern that is
   usually called the cobra effect—where the demand starts to increase in July and peaks in
   October. In contrast, the previous year showed an anomaly with a prolonged demand
   trend without early spikes that usually happened. The Company hopes this condition is
   temporary and will normalize in 2025 so that the market trend is easier to predict. As a
   mitigation step, the Company together with SIG will maintain the market share through a
   more focused strategy that directly engages with end consumers. In addition, the
   Company sees an opportunity for higher margin improvements in the West Coast region
   of the United States due to more competitive pricing compared to other regions.

   The source of CAPEX funding in 2025 still comes from the Company’s internal (internal
   cash flow).

4. Mustika Widiani, Detik. Pipit, Liputan 6.id. Is there any dividend distribution to the
   shareholders and change in the Board of Directors?

   The company will distribute 50% as dividends this year.

5. Zulfikar, iNews,ID. How does SBI sees the cement prospects in Indonesia, particularly
   amid the challenges of green development and what sustainability strategy is implanted
   by SBI in cement plant operation?

   The Company has received various appreciations from the government, including from
   the Ministry of Industry, for its achievement as a pioneer in RDF and thermal serviced
   usage in the cement industry. The Company is also recorded as the first cement company
   to have a solar power plant with a 6.39 MWp capacity. Although the transition towards
   green industry is full of challenges, the Company sees them as opportunities to continue
   growing sustainably.

   There are four main steps taken by the Company in supporting the green transition. First,
   the transition from fossil energy to alternative energy and the usage of alternative raw
   materials. Second, operational efficiency through the implementation of operational
   excellence principles. Third, the development of environmentally friendly cement, in
   which the Company has marketed four types of low CO2 emission cement. Fourth, the
   implementation of advanced technology, such as AI-based and machine learning-based
   advanced process control and machine learning that has already been applied in all plants
   to maintain operational stability.

   The Company is also the only company in Southeast Asia using hydrogen-rich gas (HRG)
   technology at Narogong Plant. This technology increases combustion efficiency,
   productivity, and reduces CO2 emissions by 8-10 million index. On the other hand,
   collaboration with more that 15 regional governments in utilizing RDF shows SBI’s
   contribution as a complete waste treatment solution without residue. The collaboration is
   also carried out with various industries in managing waste into raw materials or alternative
   fuels.

   These steps strengthen the Company’s position in the green industry competition. On the
   momentum of its 54th anniversary, SBI confirms its commitment to building the future
   through innovation, resilience, and sustainability.

6. Saut Simajuntak, UpRadio. In the current weakened property market, what strategies
   have been prepared to boost product sales?

   One of the programs initiated by SIG is introducing new solutions, precision interlock
   bricks. The Company will also promote this solution. We have also communicated how to
   address the weakening demand and what actions we will take.

7. 3 questions from Hilda Alexander (Kompas.com) Although there is a ceasefire, how does the
   geopolitical uncertainty in the Middle East, particularly the potential disrupt in the Strait of
   Hormuz, affects the cost and availability of fuel, oil and gas, as well as shipping costs which
   are significant components in SBI’s cement production and distribution. Is there any indication
   of changes in shipping routes, or strategies to diversify the raw materials supply, such as coal
   for cement plants utilized by cement producers as a response to the conflict risk, and how do
   this affect efficiency and production costs?

   Until now, there has been no change in distribution patterns, but the Company is aware that if
   there is a sudden rise in oil prices, the entire cement industry will be affected. Therefore, the
   Company’s focus is to improve the operational efficiency by increasing thermal substitution
   rate (TSR) to reduce dependence with coal and diesel. This effort is carried out by replacing
   parts of the heat energy needs with alternative fuels, particularly in the heating up phase, to
   suppress fossil energy consumption and maintain operational sustainability amid energy price
   fluctuations.

    8. What is SBI’s view on global economic uncertainty triggered by Iran-Israel geopolitical conflict,
       such as inflation and potential for recession and investment delays affecting cement demand
       for construction, infrastructure, and property projects, especially in markets that are sensitive
       to cost and capital availability?

        The Company is aware that geopolitical uncertainty also suppresses inflation and interest rate,
        that affects the construction and property sectors—particularly segments that are sensitive to
        cost and financing. This condition has the potential to cause project delays, inefficient
        infrastructure spending, and weakening demand in housing sector. This challenge is
        addressed by the Company through a careful strategy, including operational efficiency and
        distribution optimalization through synergy with the SIG group. The Company also targets the
        operation of export production facilities in Tuban to support the export of type 5 cement to the
        United States. In addition, the Company continues to promote the development of more
        competitive and environmentally friendly products. With a strong business foundation, the
        Company remains optimistic about continuing to grow amid fluctuating market conditions.

    9. Considering the potential increase in cement production costs due to geopolitical conflicts, is
       there any potential to accelerate the cement industry’s transition toward more sustainable
       energy sources, such as alternative fuels, to reduce dependence on fossil fuels in which the
       prices are vulnerable to geopolitical conflicts?

        The potential increase in production costs due to global conflict strengthens the Company’s
        commitment toward sustainable energy transition instead. Dependence on coal with
        fluctuating prices has become the main driver to increase the use of alternative fuels such as
        RDF, biomass, and industrial waste. For the Company, energy transition is not merely a
        response to global risk, but is a part of long-term strategy to improve efficiency, strengthen
        operational resilience, and support the green industry agenda in Indonesia. The target is a
        significant growth in the utilization of alternative energy through 2030.


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