#11111 TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group PUBLIC EXPOSE PT INDOCEMENT TUNGGAL PRAKARSA Tbk. Jakarta, November 10, 2020 Continuous Improvement: Leaner and Greener A 45 SMARTER FASTER BETTER#2AGENDA TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group 45 SMARTER FASTER BETTER WE ARE FASTER TIGA RODA SEMEN TIGA TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group Indonesia Cement Industry RODA SEMEN TIGA Financial Update YTD Q3 2020 RODA SEMEN TIGA RODA SEMEN TIGA RODA Investment Strategy SEMEN RODA SEMEN Cement Market Outlook HR, Good Works & Awards Q & A#3FACT SHEET INDONESIA CEMENT INDUSTRY AT GLANCE Strong Footprint in West Java as Key Advantage for Indocement 56.4% 54.7% National Cement Consumption TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group 9M2019 9M2020 Capital City Population : Jakarta :~271 Million 20.5% 21.7% 6.4% 6.3% 8.5% 8.3% 8.3% 9.1% Indonesia Facts Density GDP Annual (Q2 2020) GDP Per Capita IDR/USD Rate No. of Companies : 149/km2 : -5.32% Java Sumatera Kalimantan Sulawesi Others :~USD 4,200 :~14,000-15,000 : 16 Cement Capacity :~116 MTY ITP Cement Capacity : 24.9 MTY Cement Industry Domestic Consumption : ~65MT (2020est) Bag Bulk Ratio Cement Consumption Main Players :~75-25 :~238 kg/capita : Semen Indonesia, Indocement, Conch, Bosowa, Cemindo Slide 3 10 November 2020 Public Expose - Indocement 24.9 MT CEM Capacity 2.8 MT AGG Capacity 9 CEM Terminals 39 RMC Plants#4Growth 9M2020 -9.0% Sumatera: 16.9 MARKET INDONESIA CEMENT LANDSCAPE 2020 Kalimantan: 6.1 Sulawesi: 14.1 . • SI: 9.4 (I+GM) ⚫ INTP: • SBI: 1.8 (1) • CCI: • SMBR: 3.9 (I+GM) SEM: 2.8 (1) 3.0 (1) 0.3 (GM) . Sl: 7.4 (1) ⚫ BSM: 4.4 (1) BSM: 1.2 (GM) CCI: 2.3 (1) MP: 0.7 (1) West Java: 45.7 <=0% >0%<=5% >5%<=10% . Sl: • INTP: 1.5 (GM) 22.7 (1) East Java: 22.4 SBI: 6.0 (1) Central Java: 9.4 • SI: .CCI: 4.4 (GM) 14.7 (1) >10%<=15% >15% ⚫ MP: 4.8 (I+GM) .SI: 3.0 (1) • SBI: 3.6 (1) • SCG: 1.8 (1) . SBI: 3.4 (1) ⚫ JSI: 1.8 (1) ⚫ STAR: 1.8 (1) ⚫ MP: • Other: 2.7 (GM) • GRB: 1.2 (1) • Slide 4 10 November 2020 Public Expose - Indocement TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group Indonesia: 116.4 Integrated: 101.1 Grinding Mill: 15.3 (in million ton per annum) East Indonesia: 1.9 • SK: . CCI: 0.4 (1) 1.5 (1) ⚫ BSM: 1.8 (GM) 1.0 (GM) Puger: 0.5 (1) Hongshi: 0.8 (1) SI: Semen Indonesia, INTP: Indocement, SBI: Solusi Bangun Indonesia (ex. Lafarge Holcim), CCI: Conch, MP: Merah Putih, SCG: Siam, JSI: Jui Shin, SMBR: Baturaja, BSM: Bosowa, SK: Semen Kupang, STAR: Semen Bima, GRB: Grobogan, SEM: Semeru.#576 MARKET INDONESIA CEMENT CAPACITY SHARE Capacity in Million Tons per Annum 94 94 107 111 114 116 68 74 4 64 76 76 76 76 TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group HOOIMINT 1. Semen Indonesia + SBI (Ex Holcim): 44% 2. Indocement: 21% CONCH 3. Conch: 10% 4. Bosowa: 6% 5. Cemindo Gemilang (MP): 5% 6. Semen Baturaja: 3% 8. Siam Cement: 2% 12 12 12 12 Bima 7. Panasia: 2% 10 SCG 6 16 21 22 25 28 5 2015 2016 2017 2018 2019 2020 New Entrants (MP, JSI, SJW, STA, CCI, HS) 1 2nd Tier Incumbents (SBM, SB, SK, Puger) Top 2 Incumbents (ITP, SI) Source: Asosiasi Semen Indonesia 9. Juishin: 2% 10. Semen Kupang: <1% Puger, Hao Han, Sun Fook and Semen Jakarta: 2% (few currently are halted but included for total capacity purpose) *Data above shows Estimated Capacity in mio ton & % Capacity Share Capacity to grow by 2% in 2020 (estimated) Slide 5 10 November 2020 Public Expose - Indocement#695.1% 97.9% Economy Indocement 93.2% Crisis Acquisition by HeidelbergCement 81.8% MARKET CEMENT MARKET EVOLUTION 75.1% 71.2% 68.3% 63.6% 57.0% 58.0% 54.6% 84.6% 80.2% 78.9% TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group 91.9% 92.9% 88.7% 87.1% LHI Acquisition by SIG Pandemic Crisis 120.5 122.4 123.8 125.3 125.3 116.4 81.7% 113.9 110.6 107.1 94.3 65.7% 65.4% 61.9% 62.9% 61.4% 62.3% 60.0% 57.8% 54.6% 54.9% 75.9 69.5 47.5% 62.4 42.3% 59.8 40.1% 54.1 50.9 47.0 47.0 47.1 47.5 47.5 47.5 48.7 45.1 46.1 44.9 45.5 45.0 81.9 78.0 74.3 69.6 69.9 70.8 66.3 66.2 60.5 62.0 62.0 63.6 58.0 55.0 33.6 27.3 22.6 24.1 48.0 40.8 38.1 38.4 27.5 21.5 23.6 25.5 25.7 27.1 27.5 30.2 31.5 31.9 34.2 22.3 Additional Capacity from Existing Players (2013-18): 10 MT 19.1 18.8 Additional Capacity from 8 New Entrants (2013-18): 24.7 MT -O-Demand --Capacity -O-Utilization 94 95 96 97 98 99 Source: Industrial Ministry & INDONESIA Cement Association and Internal Indocement Projection data Slide 6 10 November 2020 Public Expose - Indocement 00 01 02 03 04 05 06 07 08 09 10 CAGR 11 12 13 '07A-10A 14 15 16 17 18 '10A-13A '13A-16A 19 20f 21f 22f 23f 24f 25f '16A-19A '19A-22F '22F-25F Demand 6.1% 12.5% 2.2% 4.1% 0.4% 5.0% Capacity 3.8% 7.1% 14.7% 6.5% 2.4% 0.8%#7MARKET INDONESIA MONTHLY SALES VOLUME TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group 5,696 5,624 Covid started by mid Mar-20 in Indonesia 7,344 6,819 7,188 7,088 6,777 6,533 6,423 6,471 6,176 5,671 6,408 6,416 6,526 6,101 5,205 5,337 +29.3% 5,869 - 9.4% 5,454 5,208 5,195 4,884 5,166 - 8.5% 4,816 4,863 - 14.9% - 7.4% 4,821 YTD Sep20 4,810 4,597 4,535 Growth -9.0% 3,762 -6.9% - 5.9% - 5.8% 3,152 3,317 -2018 -2019 -2020 - 39.3% Fasting Season Holiday 2020 Q1 Q2 2020 H1 27,165 volume in k ton Q3 Q4 ? 2020 H2 ? 2019 H1 +38% 29,424 2018 H1 +31% Slide 7 10 November 2020 30,052 Public Expose - Indocement 2019 H2 40,569 2018 H2 39,489 Source: Industrial Ministry & INDONESIA Cement Association#8MARKET (OUTSIDE) JAVA and BAG/BULK MARKET TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group Java 82% - Bag 18% - Bulk Outside Java (volume in k ton) Bag Bulk 71% - Java 29%- Outside Java 44% 44% 44% 46% 30,531 30,863 84% - Bag 24% 14,794 26% 16,938 27% 18,769 27% 18,897 69% - Java 28,885 16% - Bulk 28,194 73% 73% 31%-Outside Java 74% 76% 45% 23% 10,447 56% 56% 56% 20,251 77% 54% 46,845 49,412 50,772 51,153 55% 37,464 39,010 39,187 33,446 34,219 24,415 2016 2017 2018 2019 9M2020 2016 2017 2018 2019 66%-Bag 34% - Bulk 70% - Bag 30% - Bulk 50% - Java - 50% Outside Java 9M2020 50% - Java 50%-Outside Java • Bag market proves to be more resilient this year with current market portion of 77% vs. YTD 2019 of 73% • Bulk market suffers from heavy rainfalls during the first 2 months of the year then followed by impact of covid-19 until now Slide 8 10 November 2020 Public Expose - Indocement#9AGENDA TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group TIGA RODA SEMEN TIGA Indonesia Cement Industry RODA SEMEN TIGA Financial Update YTD Q3 2020 RODA SEMEN TIGA TIGA RODA SEMEN RODA SEMEN RODA SEMEN Investment Strategy Cement Market Outlook HR, Good Works & Awards Q & A TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group 45 SMARTER FASTER BETTER WE ARE FASTER#10FINANCE FINANCIAL HIGHLIGHT TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group Resilient Financial Result o Net Revenues % decreased more than sales volume due to blend-in effect of lower average price in 2020 Cost of Revenues decreased by -12.5% due to lower volume and continuous savings mainly in Fuel & Power ○ Resulted in improvement of Gross Profit by 150bps from 32.4% to 33.9% ○ EBITDA improved by 140bps from 18.4% to 19.8% ○ Operating Income improved by 30bps from 10.7% to 11.0% ○ Net Income is at IDR 1,116.7bio, 5% lower from last year but smaller reduction % compared to Revenues due to continuous cost savings programs ○ Maintain strong Cash Position at IDR 6.8trn with 0 debt YTD Q3 2019 YTD Q3 2020 Operational Result Decrease -9.7% 13,503 Decrease -10.6% 11,347.9 12,197 10,149.6 Sales Volume (k ton) Net Revenues (IDR bio) Financial (IDR bio) Decrease -3.9% 2,092.2 Decrease -5.0% 1,175.8 2,009.8 1,116.7 EBITDA Net Income Slide 10 10 November 2020 Public Expose - Indocement#11FINANCE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 45 Description Total Sales Volume (thousand tons) Domestic Sales Volume (thousand tons) Export Sales Volume (thousand tons) YTD Q3 2020 YTD Q3 2019 IDR Bio Variance SMARTER FASTER BETTER TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group IDR Bio IDR Bio % 12,197 13,503 -1,307 -9.7% 12,111 86 13,400 -1,290 -9.6% 103 -17 -16.3% Net Revenues 10,149.6 11,347.9 Cost of Revenues -6,712.1 Gross Profit % of Net Revenues 3,437.5 33.9% Operating Expenses -2,309.6 -1,198.4 -7,670.3 958.3 3,677.6 -240.1 32.4% -2,492.1 -12.5% 2 -6.5% 182.5 Other Operating Income (Charge) - Net -14.1 23.1 -37.2 -7.3% -161.2% 3 Operating Income 1,113.8 1,208.6 -94.8 -7.8% % of Net Revenues 11.0% 10.7% EBITDA 2,009.8 2,092.2 -82.4 -3.9% % of Net Revenues 19.8% 18.4% Finance Income - Net 235.2 269.2 Equity in Net Earnings of Associated Companies - Net Income before Final Tax and Income Tax Expense 10.7 12.0 1,359.7 1,489.7 -34.0 -1.3 -130.1 Net Income for the Period 1,116.7 1,175.8 -59.0 -10.6% -8.7% -5.0% 5 Total Comprehensive Income for the Period 1,105.2 1,175.4 -70.2 -6.0% Bio IDR -10.6% 1 -12.6% 4 • Revenues decreased by -10.6% higher than sales volume decreased of -9.7% due to blend-in effect of lower overall average selling price by -1.0% • Cost of Revenues decreased by -12.5% driven mainly by lower volume and: Lower overall fuel & power cost/ton of -8.1%: ✓ Lower unit price of coal ✓ Higher usage of LCV coal ✓ Higher usage of alternative fuels Higher Other Operating was mainly due to impairment loss for machinery & equipment of IDR 73.5bio, admitted in Q2 • Lower finance income was due to reduction of interest rate over past few months 1 1,175.8 3 4 134.3 48.2 71.0 1,116.7 958.3 Lower volume 37.2 Lower volume & fuel power Asset Impairment 34.0 Lower interest rate 1.3 Deferred Tax Benefit 1,198.4 Slide 11 10 November 2020 NI 9M2019 Revenues Cost Rev Del Sel Gen Adm Other Inc Fin Results Equity Tax NI 9M2020 Public Expose - Indocement#12FINANCE OPERATING EFFICIENCIES & COST DISCIPLINE TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group YTD Q3 Composition of Manufacturing Cost 2018 2019 2020 YTD Q3 Operating Expenses (bio IDR) Selling Expense G&A Expense 23% 24% 23% 10% 10% 11% 48% 45% 42% 1,868 1,968 1,834 +5.4% -6.8% 24% 20% 21% 514 524 475 -9.2% +2.0% Raw Materials • • Direct labor Fuel and Power Man. Overhead Raw Materials & Direct Labor generally maintain over the years Lower coal price with higher usage of low CV coal & alternative fuel continuously reduces overall Fuel and Power cost Increase in Manufacturing Overhead is due to fixed cost components with lower volume of 2020 2018 2019 2020 Both expenses are in line with lower sales volume during 9 months of 2020 including cost savings from more use of online meetings and digital platform for sales activities which reduce business travel costs Slide 12 10 November 2020 Public Expose - Indocement#1331% 32% 29% Q1 FINANCE FIXED COST MONITORING TO IMPROVE EFFICIENCY Gross Margin Development 2018 2019 2020 39% 40% 35% 34% 30% 29% 27% 23% Q2 Q3 Q4 TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group EBITDA Margin Development 21% 19% 16% Q1 2018 2019 2020 26% 21% 15% 14% 10% 8% During challenging & uncertain time, the Company continues to focus on: Operational Excellence Program Fixed Cost Reduction Program Slide 13 10 November 2020 Public Expose - Indocement • Managing Efficient Kiln Utilization 23% 20% 22 Q2 Q3 Q4#14FINANCE CONSOLIDATED BALANCE SHEET TIGA 458 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group Sep 30, 2020 Dec 31, 2019 Variance Description IDR Bio IDR Bio Bio IDR % Current Assets 11,823.3 12,829.5 -1,006.2 -7.8% Non-Current Assets Current Liabilities Non-Current Liabilities 14,514.3 14,878.3 -363.9 -2.4% 3,209.3 3,873.5 -664.2 -17.1% Equity 783.4 22,344.9 Total Assets = Total Liabilities + Equity 26,337.6 754.0 23,080.3 27,707.7 -1,370.2 29.4 3.9% -735.4 -3.2% -4.9% • Cash and cash equivalents of IDR 6.8trn as of September 2020 • Capex update estimation for 2020 is IDR 1.0trn, spending up to September 2020 is at IDR 679bio • From the Annual General Meeting of Shareholders on July 28th, 2020, it was decided total dividend to be distributed for 2020 is IDR 1,841bio or IDR500/share Slide 14 10 November 2020 Public Expose - Indocement#15AGENDA TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group 45 SMARTER FASTER BETTER WE ARE FASTER TIGA TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group RODA SEMEN TIGA Indonesia Cement Industry RODA SEMEN TIGA Financial Update YTD Q3 2020 RODA SEMEN TIGA RODA SEMEN TIGA Investment Strategy RODA SEMEN RODA SEMEN Cement Market Outlook HR, Good Works & Awards Q & A#16INVESTMENT STRATEGY THE NEW BRANDED FEATURE OF TIGA RODA BAG 45 SMARTER FASTER BETTER A logo representing Semen Tiga Roda with three circles, describing the three main components forming one strong best quality & consistent cement formula that has been perfected through 45 years of experience & mastery: MASTERTECH COFORMULA Bikin bangunan kokoh terpercaya 1. Best materials making up the cement 2. Consistent cement composition 3. Produced with a highly integrated & green technology Slide 16 10 November 2020 Public Expose - Indocement SEMEN PORTLAND KOMPOSIT TIGA RODA SEMEN SELAMANYA KOKOH TERPERCAYA 2 50% Master Inovasi PT INDOCEMENT UNCCAL PRAKARSA TH GRUNGE MOUNEN INDOCEMENT TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group#17INVESTMENT STRATEGY 3 DIGITAL PILLARS IN INDOCEMENT TR Produce 1 TR Connect End-to-end experience for our customers Key levers • Additional (service) revenues • New customer segments • Reduced logistics cost • Reduced back-office workload Slide 17 10 November 2020 Public Expose - Indocement TIGA 45 & SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group TR Service Real-time insights and advanced analytics optimizers Step change in shared service center efficiencies Key levers . More throughput • • Reduced energy cost Key levers Leverage scale and global footprint . Reduced maintenance cost • Fewer back-office resources • Lower service cost#18INVESTMENT STRATEGY 3 DIGITAL PILLARS IN INDOCEMENT TR - Connect Slide 18 10 November 2020 Public Expose - Indocement Mgangau seluruh ner ng di Stus Material S s yet mondas by TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group Buat Pesanan SFA (Sales Force Automation) Go-Live by early 2019 starting in our Home Market • Toko . a Toko bangunan web 1 Toko untuk poin MSTR Q Toko bangunan web 1 Tagihan Ke Bangunan 1 Used by all Java sales person including the Distributors' sales person in 2020 Plan to be used by all areas outside Java in 2021 Purpose: for more accurate delivery information and better visibility in the fields, enhancing our sales performance & service level Dibayar Oleh Bangunan 1 Jenis Semen PCC 40KG Jumlah Zak (Qty) 2000 Jumlah Surat Jalan 2 Qty Per Surat Jalan 1000 Surat Jalan N Ekspektasi Tanggal Waktu Pengiriman o Pengiriman#19INVESTMENT STRATEGY TIGA RODA 3 DIGITAL PILLARS IN INDOCEMENT 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group TR - Produce Products enabling real-time insights, immediate remote support & advanced analytics optimizers Slide 19 10 November 2020 Public Expose - Indocement#20INVESTMENT STRATEGY TR-PRODUCE: IMPROVING COST BASE & CUSTOMER SERVICE 45 Example: Batch Control Center • • • Consolidating batching, transport, dispatch, call center & quality control in one central location Increasing trucking fleet efficiency & on-time delivery through real-time coordination Improving material efficiency, product quality, & customer service through better monitoring & training SMARTER FASTER BETTER TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group Current Scale & Initial Benefit • • Applied in our RMC operation: reduced operators by 60% Significantly improved efficiency & better customer service GPS Control Delivery Batcher Objective • Optimize process quality & asset productivity Allocate Schedule Central Dispatch Slide 20 10 November 2020 Public Expose - Indocement Sales Order Internal Sales#21INVESTMENT STRATEGY 3 DIGITAL PILLARS IN INDOCEMENT حبا SMARTER FASTER BETTER TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group TR - Service Building the next generation Shared Service Center (SSC) unlocking a step change in efficiency Slide 21 10 November 2020 Public Expose - Indocement#22P9 Bag House INVESTMENT INDOCEMENT SUSTAINABILITY PROJECT for Reducing Dust Emission • • • New regulation require continues emission monitoring and mandatory online reporting by end 2020 Indocement received Green Label Indonesia GOLD Certification for PCC Cement Type at Citeureup & Cirebon plants Green Label is a certification for environmental friendly and sustainable product that will eventually get priority to supply Government Projects and other Environmentally concern Projects TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group Label Green donesia PERINGKAT LEVEL GOLD Diberikan kopada/Awarded to: PT INDOCEMENT TUNGGAL PRAKARSA Tbk. Untuk Produk/for the product of Brand Description SEMEN TIGA RODA (pe PCC) Portland Composite Cement Alamat Pabrik Plant Addres Chr CREEN PRODUCT COUNCE INDONESA Master plan reducing dust emission by converting ESP (Electrostatic Precipitator) to Fabric Bag House Filters COMPLETED MASTER PLAN SCHEDULE 2022 2023 2024 2015 2017 2018 2020 2021 P-5 Dec-20 P-11 Q4-2021 P12 P-7 P-3 P-9 Nov-15 P9 Dust Emission (mg/m3) 2015 = 55.0 2019 = 13.7 Slide 22 10 November 2020 Public Expose - Indocement P-10 Jul-17 P10 Dust Emission (mg/m3) 2015 = 59.8 2019 = 12.8 P-4 Feb-18 P4 Dust Emission (mg/m3) 2015 = 32.8 2019 = 4.7 P-8 Feb-20 P8 Dust Emission (mg/m3) 2015 = 51.4 Q3 2020 = 9.5#23INVESTMENT NEW AGGREGATES QUARRY. - PAMOYANAN PROJECT 45 close to Jakarta - Bogor - Cikampek area SMARTER FASTER BETTER TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group • Commercial production has started by October 2020 • Production target is 100k ton/month of Aggregates product for the first year • Annual production capacity of 2.5mio ton/year • Ready to supply strategic projects in Jabodetabek area such as High Speed Railway, Jakarta-Cikampek Southern Part, Harbour Toll Road, LRT etc Crusher & Washing Slide 23 10 November 2020 Public Expose - Indocement Plant Area#24INVESTMENT NEW INSTANT CEMENT PRODUCT: GREY MORTAR 45 SMARTER FASTER BETTER TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group TIGA RODA SEMEN MASTERTECH COFORMULA SELAMANYA KOKOH TERPERCAYA PILIH MATERIAL YANG TEPAT AGAR DINDING RUMAH SEMAKIN KUAT TR-15 THINBED TIGA RODA Grey Mortar (Instant Cement Mix) is to be launched within near future ■ Target Production Capacity: 180k ton/year ■ Target Market: Jabodetabek & other West Java region ■ Source of Raw Materials: Internal Sourcing from Citeureup Quarry & Plant including Limestone sand (CaCO3) TR-30 ACIAN PUTIH TR-10 MORTAR SERBAGUNA TR-20 PLESTER PLUS Aclan Putih Barkullis Perekat Bata Ringan Konstruksi Pasangan Bata Meran Piester Bata Merah Parata Lantai Tahan Lama Prakti F 40 kg nemis Plester Bata Ringan 40 kg han Lam 40 kg PIATURE den Cerah 40kg Project Rationale: ■ ■ Huge demand of instant cement is anticipated with lack of good & reliable quality supply Better performance than traditional mixing High Quality materials available at plant TR 10 Mortar Serbaguna (multi purpose), TR 15 Thinbed, and TR 20 (Plester Plus) in addition to our current White Mortar product HC TR 30#25AGENDA TIGA RODA SEMEN TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group TIGA Indonesia Cement Industry RODA SEMEN TIGA Financial Update YTD Q3 2020 RODA SEMEN TIGA RODA Investment Strategy SEMEN TIGA RODA SEMEN RODA SEMEN Cement Market Outlook HR, Good Works & Awards Q & A TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group 45 SMARTER FASTER BETTER WE ARE FASTER#26! OUTLOOK CEMENT MARKET OUTLOOK TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group FY 2020 Demand growth is expected to be -9% to -10% (NB: YTD Sept 2020 growth: -9.0%). Some factors that potentially hinder the growth: start of rainy season, demonstration activities against UU Cipta Kerja, Regional Election in December, and the shift of Lebaran holiday at the end of year. Overall Pricing is expected to stay flat. Hongshi has started distributing their product in East Java starting September 2020 with no major disruption on price so far as multi-brand strategy is applied by the home market player Production cost will remain intact following to lower Coal Purchase Index with noted risk of stronger USD against IDR Infrastructure Yearly Spending 41,6 47,3 5,1 3,4 0,0 -28,7 2021: Demand growth is expected +4% to +5% p.a. as we foresee higher bulk sales volume: 414,0 394,0 394,1 381,2 ➤ The Infrastructure budget for 2021 has been raised to pre-Covid level 269,1 ➤ Multiplier effect of Infrastructure will boost Industrial zone and factories development Slide 26 10 November 2020 Public Expose - Indocement 281,1 2018 2019 Outlook 2020* O RAPBN 2021 Growth % 2016 2017 Amount IDR trillion Source: Ministry of Finance#27AGENDA TIGA RODA SEMEN TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group Indonesia Cement Industry TIGA RODA SEMEN TIGA Financial Update YTD Q3 2020 RODA SEMEN TIGA TIGA RODA Investment Strategy SEMEN TIGA RODA SEMEN RODA SEMEN Cement Market Outlook HR, Good Works & Awards Q & A TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group 45 SMARTER FASTER BETTER WE ARE FASTER#28No Fatality for the past 3 years HR GOOD WORKS AWARDINGS - INDOCEMENT SAFETY CULTURE 50 Rly Sea 3 2 1 Fatality Accident 0 2015 2016 2017 2018 2019 2020 Sep Indocement 3 ■Contractor 3rd Party 0 0 200 0 1 1 0 0 0 0 0 0 0 0 0 Certain Programs Roll Out in 2020: • • . • ● Management has positioned SAFETY & HEALTH as highest attention and commitment Regular BOD safety walk and safety conversation Quick action in Covid-19 measurements Discipline in the execution of safety program Safety training also include all Safety Officers of Contractors & Transporters Conducting Virtual Safety Inspection GOOD SAFETY: = GOOD BUSINESS Slide 28 10 November 2020 Public Expose - Indocement TIGA RBOOKLET RAGAM INFO COVID-19 M Adaptasi Kebiasaan Baru CEL(The New Normal) Pray Safe Think Safe Work Safe Always Safe TIGA 458 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group#29INDOCEMENT - HR GOOD WORKS AWARDING S - NEXT GENERATION IS COMING!!! Top 10 University selected: TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group ITB, UI, ITS, UGM, Atmajaya, Trisakti, Parahyangan, Padjajaran, Diponegoro, Brawijaya, Hasanudin Selection process: Total applicants : 5,896 Meet criteria : 775 Written test : 475 Interview test : 120 Presentation test : 75 Candidate selected : 22 On the board : Oct 1, 2019 TOGETHER WE BUILD OUR NATION INDOCEMENT MT 2019 As an Indocement Management Trainee, you will be in a strategic position to learn from experienced professional and become our Starting the program with 2 weeks in Army camp for "mentality & discipline module" Slide 29 10 November 2020 Public Expose - Indocement future leader. MT meet the Top Leaders Program Roll Out#30- HR GOODWORKS AWARDINGS - INDOCEMENT HI PO DEVELOPMENT PROGRAM o An Executive Development Program to create the future leaders of Indocement. Prasetya Mulya Business Institute as our strategic partner to develop and roll out the program. RODA SEMEN INDOCEMENT UNIVERSITAS PRASETIYA MULYA Was founded in 1982 By Prasetiya Mulya Foundation Pioneering MBA Program in A.G.E.N.T. OF CHANGE Development Program Indonesia Emphasizing on implementation creativity solution INNOVAT inspira futur 1ST batch Roll out in Jan 16, 2020 Program Kick Off & Insights from CEO - Nov 2019 Slide 30 10 November 2020 Public Expose - Indocement Lecture from the Top Leader INDOCEMENT AGENT OF CHANGE DEVELOPMENT PROGRAM#31HR GOOD WORKS - AWARDINGS INDOCEMENT GOOD WORKS We develop 29 "desa binaan” through “bilikom" Preservation of Local Culture Mangrove forest development Citeureup Plantsite GGGG Desa Gunung Putri Desa Nambo Desa Citeureup Desa Gunungsari Desa Pasir Mukti Desa Tajur Desa Hambalang Desa Leuwikaret Desa Lulut Desa Bantarjati Desa Tarikolot Kelurahan Puspanegara 12 Local Villages Palimanan Plantsite Desa Walahar Desa Palimanan Barat Desa Cikeusal Desa Kedungbunder Desa Gempol Desa Ciwaringin Desa Cupang GG Tarjun Plantsite Desa Sungai Dua Desa Desa Tarjun Desa Cantung Kiri Hilir Desa Serongga Desa Sidomulyo Desa Tegal Rejo Desa Cantung Desa Simpang Tiga Quarry Desa Langadai Desa Pulau Panci 45 SMARTER FASTER BETTER TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group Construction of Worship Facilities 7 Local Villages 10 Local Villages Mobile Clinic Scholarship BEASISWA BERPRESTASI 402 SANA SO DAN SMPN GEMPOL BAAN PT INDOCEMENT TUNGGAL PRAKARSA Slide 31 10 November 2020 Public Expose - Indocement BANK SAMPAH AL-KARIMAH TO SCHOOL RAYMAR MER KAASHABA Socialization "bank sampah" Soccer Club Junior "Banyupanas" hot spring water "Indobatik" Ciwaringin#32HR GOODWORKS AWARDINGS - INDOCEMENT GOOD WORKS THE MOVEMENT OF "INDOCEMENT PEDULI❞ BANJIR & LONGSOR JABODETABEK 266 Meninggal Dunia 173.064 Pengungsi 39.102 Rumah Terendam BANTUAN INDOCEMENT Desa Pasir Madang, Kec. Sukajaya, Kab. Bogor Air Mineral Lampu penerangan Makanan Siap Saji Pakaian Dalam Pembalut Wanita Pampers Bayi • Susu & Makanan Bayi • Obat-obatan & Vitamin • Tikar/Alas tidur • Selimut 39.102 39.102 Rumah Terendam BANTUAN INDOCEMENT Desa Pasir Madang, Kec. Sukajaya, Kab. Bogor ● Air Mineral Lampu penerangan Makanan Siap Saji Pakaian Dalam Pembalut Wanita INFAQ ● Pampers Bayi Susu & Makanan Bayi Obat-obatan & Vitamin Tikar/Alas tidur • Selimut Penggalangan Dana melalui: I.M.I & S.P-UNIT CITEUREUP W.A: 0811 1033 076 (Aditya P.M) PT Indocement Tunggal Prakarsa Tbk www.indocement.co.id Bantu Banjir #Harmoni3Roda ✓ The floods and landslides that hit the Greater Jakarta area in the new year of Jan 1, 2020, left a deep sorrow. ✓ Through "Indocement Peduli❞ movement, we collected donation from Management and Employees to help the victims at surrounding Bogor area. INDOCEMENT #Semen3Roda Slide 32 10 November 2020 Public Expose - Indocement INDOCEMENT Per Bencana tonun a ER TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group#33HR GOODWORKS AWARDINGS - - INDOCEMENT GOOD WORKS THE MOVEMENT OF "INDOCEMENT GOES TO COMMUNITY" Board of Directors, Managers, Staff Management, Labor Union, Muspika and the villagers voluntary doing the good works for community "Rutilahu" Projects Slide 33 10 November 2020 Public Expose - Indocement Backing TAN JNG National Clean up day EME OCEM Painting the Mosque TIGA ODA 45 & SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group Indocement Care - Covid 19 Socialization Covid-19 virus to villagers#34SWA 8 January HR - GOODWORKS - AWARDINGS AWARDINGS "PROPER Green Rating" for Cirebon Factory from Ministry of Environment and Forestry of the Republic of Indonesia upacara Pembuke in INDOCE THINK SAFE 2020 THE BEST CEO 2019 Christian Kartawijaya The Best CEO 2019 30 January "Indonesia Best CEO 2019" for Christian Kartawijaya, President Director of Indocement, from SWA Magazine. The assessment was based on company's performance, business prospect and his commitment to implement GCG as well as preserving environment SILVER WINNER 2020 COLD WINNER SAFI 2020 SEVER WINNER 15 January TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group "ISO 45001:2018" for Indocement - a new standard to assist organizations to reduce issues related to OSH, provide safe and healthy workplaces by preventing work-related injury and illness, as well as proactively improving OHS performance 20 April Three "Public Relations Indonesia Awards" (PRIA) from PR Indonesia Magazine: 1. Gold Winner, sub- category Sustainability Report 2. Silver Winner, sub- category Annual Report 3. Silver Winner, sub- category CSR-Community Based Development Program (Eco-tourism Batu Lawang) Slide 34 10 November 2020 Public Expose - Indocement#3545 fharmoniẞroda 45 Brand Finance ple Indocement Tunggal Prakarsa HR - GOODWORKS - AWARDINGS AWARDINGS BEMBR INDOCEMENT 9 July "Indonesia's Top 100 Most Valuable Brands 2020' for Indocement from SWA Magazine in collaboration with Brand Finance Indonesia Indecenciat pengharge W.29 Nelson Brand 2320 TOP CSR TOP CSR AWARDS CHRISTIAN KARTANAYA TOP CSR AWARDS 2020 STARS fyharmoniẞroda Slide 35 10 November 2020 Public Expose - Indocement ICONOMICS TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group The Iconomics Prousty Honors Christian Kartawijaya President Director PT Inducement Tunggal Prakarsa Tbk. The Best CEO 2020 Category Building Hotel 23 July "Best CEO 2020" - Building Material Category for Christian Kartawijaya from The Iconomics Thursday, July 27 2020 Brau Bran S. Putro INDOCEMENT TOP CSR 2000 29 July Two "TOP CSR Awards 2020" for Indocement from Top Business magazine in collaboration with the National Committee for Governance Policy (KNKG) and a number of CSR associations and consultants: 1. TOP CSR Awards 2020 #Stars 5 2. Top Leader on CSR Commitment 2020 for Christian Kartawijaya, President Director of Indocement Green Label PERINGKAT LEVEL GOLD Diberikan kepada/Awarded 1 PT INDOCEMENT TUNGGAL PRAKARSA Tbk. Produk for the product of Brand SEMEN TGA RODA (PCC) Desciption Portland Compose Cement All Pob Label ndones PERINGKALIVE GOLD Diberikan kepada/Awarded to: PT INDOCEMENT TUNGGAL PRAKARSA Tbk. Untus Frocketho Bond Descon Semen Tiga Roga (Tipe PCC) Portland Composite Camert My Addres CHEER SCOUT COUNCIL NOONI 29 July Indocement Citeureup Factory and Indocement Cirebon Factory attained "Gold" title of Green Label Indonesia certificate - an environmentally friendly product certification with an emphasis on efficient use of resources from the Green Product Council Indonesia for "Semen Tiga Roda" type Portland Composite Cement (PCC)#36AGENDA TIGA RODA SEMEN INDOCEMENT HEIDELBERGCEMENT Group 45 SMARTER FASTER BETTER WE ARE FASTER TIGA RODA SEMEN TIGA TIGA RODA 45 SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group Indonesia Cement Industry RODA SEMEN TIGA Financial Update YTD Q3 2020 RODA SEMEN TIGA TIGA RODA SEMEN TIGA Investment Strategy RODA SEMEN RODA SEMEN Cement Market Outlook HR, Good Works & Awards Q & A#37TIGA RODA BEMEN Dangan MASTERTECH OFORMULA Master Inovasi KETAHUI PRINSIP ARSITEKTUR AGAR BANGUNAN TETAP KOKOH TIGA RODA SELAMANYA KOKOH TERPERCAYA حبا SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group SEMEN PORTLAND KOMPOSIT 194 RODA SEMEN SELAMANYA KOKOH TERPERCAYA 50. INDOCEMENT INDOCE THANK YOU TUYUK LOO#38Important Notice 45 TIGA RODA SMARTER FASTER BETTER SEMEN INDOCEMENT HEIDELBERGCEMENT Group Disclaimer This presentation contains general information which provided without any representations or warranties, express or implied 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. Terms of Use Slides prepared in this presentation are strictly confidential and have been prepared as a support for verbal 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. You acknowledge that, because of the limited nature of communication through our presentation features, any assistance you may receive using any such features is likely to be incomplete and may even be misleading. Forward-Looking Statements This presentation includes forward-looking statements, which are based on the expectation or forecast about future events, formed by Indocement after reviewing existing data and research. Such statements involve known and unknown risks including factors such as: (i)Global macroeconomic and geopolitical situations; (ii) Indonesia macroeconomic and geopolitical situation; (iii) Competition from incumbents and new players; (iii) Changes in laws, regulation, taxation, or accounting standards or practices; (iv) Acquisitions, divestitures, and various business opportunities that we may pursue; (v)Force majeure; (vi)Labor unrest or other similar situations; (vii) Outcome of pending or threatened litigation Indocement does not give assurance that such outcome will be attained. If you have any specific questions about any legal, financial or tax matter, you should consult your lawyer/financial/tax Consultant or other professional legal services provider. For further information please contact PT Indocement Tunggal Prakarsa Tbk. Wisma Indocemen, 8th Floor Jl. Jend. Sudirman Kav 70-71 Jakarta 12910, Indonesia. Phone: +62 21 2512121 e-mail: [email protected]. ©2019, PT Indocement Tunggal Prakarsa Tbk. All rights reserved. Slide 38 - 10 November 2020 Public Expose - Indocement