Press Release

October 14, 2022

PT Semen Indonesia (Persero) Tbk

Credit Rating(s) PEFINDO has assigned its idAA+ rating to PT Semen Indonesia (Persero) Tbk (SMGR)’s
General Obligation (GO) idAA+/Stable proposed SR Bond II amounting to a maximum of IDR3 trillion, of which for the first phase,
SR Bond I/2019 idAA+ it expects to issue of up to IDR1 trillion. The proceeds from the first phase will be used for
Proposed SR Bond II/2022 idAA+ working capital and general purpose. At the same time, PEFINDO has also affirmed the
Phase I ratings for SMGR and its Shelf-Registration (SR) Bond I at idAA+. The outlook for the
corporate rating is stable.
Rating Period The rating reflects SMGR’s very strong market position in the cement industry, its well-
August 18, 2022 – August 1, 2023 diversified production and logistic facilities, and conservative financial profile. However, the
intense market competition and risk related to higher input costs constrain its rating, in
Published Rating History our view.
MAR 2022 idAA+/Stable
The rating may be raised if SMGR materially improves its business profile as reflected in a
MAR 2021 idAA+/Stable
higher-than-projected revenue and EBITDA on a sustained basis, while maintaining its
SEP 2020 idAA/Stable
conservative financial profile. However, the rating may be lowered if there is an indication
SEP 2019 idAA/Stable
of a sustained loss in market shares and a material deterioration in profitability due to
MAR 2019 idAA+/Negative
significant increase in input costs and/or weaker pricing power. We may also lower the
NOV 2018 idAA+/C.W. Negative rating if SMGR incurs debt higher-than-projected without being compensated by higher
MAR 2018 idAA+/Stable revenue prospects, thus, making us no longer view SMGR as having a conservative
MAR 2017 idAA+/Stable financial profile.

Established in 1953, SMGR is the largest cement producer in Indonesia, with 52.7 million
tons of domestic installed capacity as of March 31, 2022, with a domestic market share of
48%. It has eight integrated cement plants in Indonesia via principal subsidiaries, located
in Java, West Sumatra, Aceh, and South Sulawesi. At the beginning of 2019, it completed
the acquisition of PT Holcim Indonesia Tbk (SMCB), the third-largest cement producer in
Indonesia. SMCB was subsequently renamed to PT Solusi Bangun Indonesia Tbk (SBI) and
SMGR owned 83.5% of its shares at end-March 2022. SMGR offers a wide range of cement
products, such as ordinary Portland (OPC), Portland composite (PCC), Portland Pozolan
(PPC), special blended (SBC), super masonry (SMC), oil well (OWC), Portland mixed, and
white cement. It also manufactures cement bags and ready-mix concrete. As of March 31,
2022, the government of Indonesia held a 51% stake, with the rest held by the public .

Rating Definition
A debt security rated idAA differs from the highest
rated debt only to a small degree. The obligor’s
capacity to meet its long-term financial commitments
on the debt security, relative to other Indonesian
obligors, is very strong. The Plus (+) sign indicates
that the rating is relatively strong within the respective
rating category

Contact Analysts:
yogie.perdana@pefindo.co.id
randhya.musapratikto@pefindo.co.id

http://www.pefindo.com October 2022

 Press Release
October 14, 2022

Financial Highlights
As of/for the year ended Mar-2022 Dec-2021 Dec-2020 Dec-2019
(Audited) (Audited) (Audited) (Audited)
Total adjusted assets [IDR bn] 72,645.6 72,686.9 74,044.5 75,547.0
Total adjusted debt [IDR bn] 18,502.4 18,630.1 25,735.6 30,041.9
Total adjusted equity [IDR bn] 35,513.4 35,965.6 31,691.6 29,631.9
Total sales [IDR bn] 8,136.7 34,957.9 35,171.7 40,368.1
EBITDA [IDR bn] 1,799.3 8,269.6 9,076.9 8,606.6
Net income after MI [IDR bn] 498.6 2,021.2 2,792.3 2,392.2
EBITDA margin [%] 22.1 23.7 25.8 21.3
Adjusted debt/EBITDA [X] *2.6 2.3 2.8 3.5
Adjusted debt/adjusted equity [X] 0.5 0.5 0.8 1.0
FFO/adjusted debt [%] *29.5 32.5 23.1 15.2
EBITDA/IFCCI [X] 5.5 5.1 3.9 2.7
USD exchange rate [IDR/USD] 14,349 14,269 14,105 13,901
FFO = EBITDA – IFCCI + Interest Income – Current Tax Expense
EBITDA = Operating Profit + Depreciation Expense + Amortization Expense
IFCCI = Gross Interest Expense + Other Financial Charges + Capitalized Interest; (FX Loss not included)
MI= Minority Interest *annualized

The above ratios have been computed based on information from the company and published accounts. Where applicable, some items have
been reclassified according to PEFINDO’s definitions.

DISCLAIMER
The rating contained in this report or publication is the opinion of PT Pemeringkat Efek Indonesia (PEFINDO) given based on the rating result on the date the rating
was made. The rating is a forward-looking opinion regarding the rated party’s capability to meet its financial obligations fully and on time, based on assumptions
made at the time of rating. The rating is not a recommendation for investors to make investment decisions (whether the decision is to buy, sell, or hold any debt
securities based on or related to the rating or other investment decisions) and/or an opinion on the fairness value of debt securities and/or the value of the entity
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http://www.pefindo.com October 2022