20240605_SMCB_Public Expose_31646850_lamp2.pdf

               Lampiran Surat No. 192/LCCS/SBI/V/2024 tanggal 5 Juni 2024



V. Question and Answer

   1. Pulina Nityakanti – Kontan
      a. What is the actual sales volume of SMCB cement as of April/May 2024? Is it on target? How
          many percent have you achieved the 2024 target? What are the details like?
          Answer:
          Sales of cement and clinker in April decreased slightly from last year's 1%, due to tight
          competition in the market, the political year and also the many national holidays. This factor
          caused cement sales to fall by 5% but was offset by a 21% increase in clinker volume as a
          synergy effect with SIG and TCC.

       b. Is there still an oversupply currently? Approximately how long will this happen and what is
          SMCB's strategy to maintain performance amidst oversupply conditions this year?
          Answer:
          Oversupply conditions in the cement industry continue. This is due to the addition of new
          production capacity which is greater than the growth in market demand, which has
          contracted due to the COVID-19 pandemic. In 2023, of the total cement factory capacity in
          Indonesia of 119 million tons, market absorption will only be 65.5 million tons with utilization
          of 55%.

           Regarding the duration of the oversupply condition, it is difficult to predict exactly how long
           this will last because there are many influencing factors, including global economic
           conditions, local market dynamics, government policies and other things.

           PT Solusi Bangun Indonesia Tbk (SBI)'s strategy in maintaining performance amidst
           oversupply conditions includes:

           -   Cost Optimization: Focus on reducing production and distribution costs to maintain
               profit margins.
           -   Increased Utilization: Increase plant and asset utilization through export market
               expansion and increased operational efficiency.
           -   Product Innovation: Develop and market environmentally friendly cement products with
               a lower carbon footprint to meet growing market demand for sustainable building
               materials.
           -   Synergy with SIG and TCC: Utilize synergies with parent companies and strategic partners
               to optimize production and distribution networks and develop new technologies.
           -   Business Diversification: Expanding the business portfolio to include new business
               opportunities that can increase added value.

             Lampiran Surat No. 192/LCCS/SBI/V/2024 tanggal 5 Juni 2024



         SBI is committed to adapting its business strategy according to market conditions and
         continuing to innovate to ensure sustainable growth and value creation for stakeholders.

    c.   What projects is SMCB working on and still ongoing in 2024? What is the estimated cement
         sales volume to these projects?
         Answer:
         1. Power Plant Jawa 9-10 in Cilegon
         2. ⁠Road repair project using Rapid Setting Concrete (SpeedCrete) in Jakarta
         3. ⁠Residential project in Jakarta
         4. ⁠ Toll road construction project in Banten and West Java
         5. LRT phase 1B velodrome – Manggarai
         6. Tol Japeksel package 2B
         7. Tol Kataraja
         8. Tol Patimban
         9. Merak Harbor
         10. Toll road and national road in Rengasdengklok
         Other retail projects in Java.
         The cement sales volume for these projects is part of fulfilling the RKAP for cement sales
         together with cement sales to the retail sector.



2. Dioniso Damara – Bisnis Indonesia
   How is the company trying to increase the free float ratio? Will there be any corporate action
   in the near future? There is an interest rate increase on SMCB loans, and are observed to
   increase in the first quarter of 2024. What caused it? And what is the outlook for financial
   burdens amid rising interest rates in Q2? will it be affected?
   Answer:
   The minimum free float regulation of 7.5% was officially implemented in 2021 during the Covid-
   19 pandemic. At that time, the Company considered that (2021 - 2022) was not the right time
   because people in general was still focused on health priorities. As economic growth gradually
   recovers, SBI is now considering several options to meet the minimum free float threshold,
   thereby maintaining our commitment to comply with applicable regulations and investor
   confidence.



3. Hilda – Kompas
   a. SBI claims to have implemented ESG in its operations, but I did not find SBI on the IDX-
       Sustsinalytics ESG Risk Rating list. Meanwhile, similar companies are competing to reduce
       their ESG risk. What is the reason why SBI is not listed yet?
       Answer:

            Lampiran Surat No. 192/LCCS/SBI/V/2024 tanggal 5 Juni 2024



        SMCB is not included in ESG because public shares are around 1% while sustainalytic
        monitors share movements at LQ 45. SBI is always committed to three aspects, how we
        protect the environment, social and governance with concrete steps, including the use of
        environmentally friendly raw materials and alternative fuels and produce environmentally
        friendly products.

    b. What are the corporate actions in semester II for financial strengthening? Considering the
       increase in construction spending, the residential backlog is still 12.75 million and VAT DTP
       has been extended
       Answer:
       Apart from the unmet need for 12.7 million housing units, the building materials industry in
       Indonesia can also benefit from the rapid development carried out by the government. SBI is
       well positioned under SIG as a business player that dominates the industry to gain
       opportunities to meet market demand in both retail and bulk segments. SBI is also recognized
       for our leadership in innovative solutions and sustainable approaches which have now
       become the interest and preference of forward-looking investors.


4. Muawwan Daelamy – Investor Daily
   a. What percentage of operational cost efficiency can be generated from the company's steps
      to substitute coal fuel for alternative fuel? And what is the impact on SMCB's income?
      Answer:
      SBI continues to utilize alternative fuel to reduce coal consumption, one of which is by using
      RDF, industrial waste and biomass. As stated in our presentation, until 2023, SBI's thermal
      substitution rate (TSR) will reach 12.2, an increase of 0.5% compared to 2022. This proves
      that SBI continues to make efficiency efforts in operational costs. We felt a very significant
      impact, especially when energy costs and fuel costs increased. Apart from that, we also utilize
      hydrogen in the production process and convert diesel to compressed natural gas (CNG) for
      cement mill operations at the Tuban Plant.

    b. What types of new business is SMCB involved in outside the core business? How does SMCB
       see the potential of the logistics sector?
       Answer:
       SBI is currently initiating efforts to classify and optimize the assets we own. We see that there
       are opportunities in the aspect of raw materials which are very large in quantity and can be
       used in other industries, one of which is the smelter industry. So we take advantage of this
       opportunity for new business in our company. Apart from that, we are also intensifying the
       Nathabumi business unit, which is currently the largest integrated waste management
       business unit in Indonesia. We also provide added value to ongoing soil stabilization projects
       with TCC, as our strategic partner with costs and processes that are more efficient than
       conventional methods.

                          Lampiran Surat No. 192/LCCS/SBI/V/2024 tanggal 5 Juni 2024



                     Soil stabilization is a solution to the needs of several land/mining areas in Indonesia which
                     have unstable characteristics.


                c.   How does SBI respond to the presence of new player in the Aceh area?
                     Answer:
                     As we know, currently the market is over supplied. Some time ago there was also a
                     statement from the BKPM Ministry. We will continue to coordinate with the Indonesian
                     Cement Association, because the current situation will greatly disrupt our domestic
                     industry.


          5. Moch Saiful – News of Aceh: XXI PON will be held in North Sumatra-Aceh Province, specifically
             for Aceh, currently construction of venues is being intensively carried out for sports facilities
             that will be competed in and of course a lot of cement will be needed, whether cement from
             the Lhoknga Plant (Solusi Bangun Andalas) a priority to use?
             Answer:
             As a proud product of Aceh, we are ready to support cement supplies for the construction of
             facilities and infrastructure. Our plant location which is very close to the PON venue will greatly
             simplify the supply chain and product availability is guaranteed. Because the project requires
             guaranteed supply and cement whose quality has been tested.



          6. Zulfikar - FA News: How does SBI produce cement throughout Indonesia while maintaining the
             same good quality?
             Answer:
             As stated in the presentation, we have obtained standards and are accredited by ISO, one of
             which is ISO 90001, where this standard regulates our commitment to maintaining product
             quality. We have more than 50 years of experience in producing the best cement, so we are
             confident that the cement we deliver to the market is of the best quality.



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