Holding AGMS for Fiscal Year 2022, SMBR’s Net Profit Increases 103%

Jakarta, 8 May 2023 – PT Semen Baturaja Tbk (SMBR) as a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG) held an Annual General Meeting of Shareholders (AGMS) for Fiscal Year 2022 at the Sari Pacific Hotel, Jakarta on Monday (8/5 ) led directly by the Main Commissioner of SMBR, Franciscus M.A Sibarani.

At the AGMS, SMBR managed to record positive performance in the 2022 financial year by pocketing a net profit of IDR 94.83 billion, growing 103% compared to the 2021 period of IDR 46.7 billion. SMBR also agreed to distribute a dividend payout ratio of 20% with a total cash dividend value of 18.96 billion and the remaining 80% or IDR 75.86 billion to be designated as other reserves.

Main Director of SMBR, Daconi Khotob said that in 2022, SMBR was able to record sales volume growth of 4% to 2.01 million tons, even though the demand for cement nationally, especially in the South Sumatra region which is SMBR’s main market, has experienced a correction.

Not only that, SMBR also managed to record revenue throughout 2022 of 1.88 trillion, growing 7% compared to last year’s period. In terms of EBITDA, it was recorded at IDR 437 billion, growing 5% compared to 2021.
“This positive performance record is inseparable from the success of the Company’s strategic initiatives in 2022 which focus on three initiatives, namely Cost Leadership Through SMBRGO45 Program, Strengthen Market Positioning and Competency Improvement of Employees. This is the company’s flagship program in order to streamline costs in various fields and implement best practices in operations so as to achieve positive performance,” said Daconi Khotob.

Changes in the Composition of the Company’s Management

The AGMS also approved changes to the composition of the company’s management. The company expresses its gratitude and gives its highest appreciation for the contribution of the replaced company management in maintaining the financial and operational performance of SMBR.

The meeting honorably dismissed Tubagus Muhammad Dharury as Director (Finance and HR Function).
Furthermore, the Meeting appointed the Board of Directors of the Company, namely Rahmat Hidayat as Director (Finance and HR Functions).

Along with the approval of these changes, the composition of the company’s management becomes:

Board of Commissioners

Board of Directors

Other meeting resolutions

In addition to approving the distribution of dividends and changes to the management of the company, the AGMS also approved the Annual Report of the Board of Directors for the 2022 Fiscal Year including the Supervisory Report of the Board of Commissioners and ratified the Company’s Consolidated Financial Statements for the 2022 Fiscal Year as well as granting full release and discharge of responsibility (volledig acquit et de charge) to The Directors and Board of Commissioners of the Company for the management and supervisory actions that have been carried out during the 2022 Fiscal Year;
Ratification of the Annual Report including the Financial Report of the Micro Small Business Funding Program for the Fiscal Year 2022, as well as granting of release and discharge (acquit et de charge) to the Directors and Board of Commissioners of the Company for the management and supervision of the Micro Small Business Funding Program that has been carried out during the Fiscal Year 2022 ;

Determination of Tantiem for the Board of Directors and Board of Commissioners of the Company for the 2022 Fiscal Year and Income for the Directors and Board of Commissioners for the 2023 Fiscal Year;

Appointment of a Public Accounting Firm to audit the Company’s Consolidated Financial Statements for Fiscal Year 2023 and Financial Statements for the Micro Small Business Funding Program for Fiscal Year 2023.

Additional information

SMBR continues to encourage business practices that pay attention to sustainability aspects (Environment, Social and Governance/ESG) consistently in line with the company’s vision of becoming the leading Green Cement Based Building Material Company in Indonesia. This is also in line with the Sustainability Strategy that has been established by Holding SIG as a form of commitment to sustainability. In terms of the Environment, it is recorded that for 2022, as a form of support for the decarbonization program, SMBR encourages increased use of Alternative Fuel & Raw Material (AFR) in production activities. SMBR succeeded in reducing the intensity of Carbon Emissions (Scope 1) down to 0.587 Ton CO2/ton cement equivalent, or decreased by 0.624 Ton CO2/ton cement equivalent as a form of support in the decarbonization program. Reducing the Clinker Factor to 69.4% from 72.9% in 2021 and Increasing the Thermal Subsitution Rate to 2.62% above the 2022 target of 1%.

Additional information

SMBR continues to encourage business practices that pay attention to sustainability aspects (Environment, Social and Governance/ESG) consistently in line with the company’s vision of becoming the leading Green Cement Based Building Material Company in Indonesia. This is also in line with the Sustainability Strategy that has been established by Holding SIG as a form of commitment to sustainability. In the Environmental Aspect (Enviroment) recorded for 2022, as a form

support in the decarbonation program, SMBR encourages increased use of Alternative Fuel & Raw Material (AFR) in production activities.

SMBR succeeded in reducing the intensity of Carbon Emissions (Scope 1) down to 0.587 Ton CO2/ton cement equivalent, or decreased by 0.624 Ton CO2/ton cement equivalent as a form of support in the decarbonization program. Reducing the Clinker Factor to 69.4% from 72.9% in 2021 and Increasing the Thermal Subsitution Rate to 2.62% above the 2022 target of 1%.

Meanwhile, from the Social Aspect, SMBR continues to build awareness of social issues through the SMBR Social and Environmental Responsibility (TJSL) program. More broadly, the implementation of TJSL is not only beneficial for fostering self-sufficiency and community empowerment and reducing social inequality, it is also beneficial for strengthening the carrying capacity of the environment. In 2022, SMBR has channeled funds to social, economic, environmental and legal and governance pillars reaching a total value of Rp. 2.64 billion above 2021’s Rp. 1.75 billion.

In terms of the Governance Aspect, SMBR’s commitment to implementing aspects of good corporate governance SMBR managed to get a GCG Assessment score of 94.02 with a Very Good predicate above the 2021 score of 93.846 and the Risk Maturity index achieved a score of 4.22 with the predicate Mature or Transformed has increased significantly from the 2021 score of 3.46. This achievement reinforces SMBR’s commitment to making governance the foundation of a sustainable business.