Recording Positive Performance in 2023, Semen Baturaja Distributes 20% Dividend

JAKARTA – 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 2023 at The East Tower Mega Kuningan, Jakarta on Wednesday (29/ 5).

The company succeeded in maintaining positive performance in 2023, which was full of challenges for the national cement industry, by posting a net profit of IDR 121.57 billion or an increase of 57% compared to the 2022 period of IDR 77.3 billion. The meeting approved the distribution of dividends with a payout ratio of 20%, with a total cash dividend of IDR 24.31 billion, and the remaining 80% or IDR 97.26 billion designated as retained earnings.

This year’s dividend distribution increased compared to the previous year which amounted to IDR 18.96 billion. This shows the company’s commitment to continuing to provide added value to shareholders.

The company was able to record growth in total cement sales volume of 7.56% to 2.16 million tonnes above demand growth in the Southern Sumatra (Sumbagsel) region, which is the company’s main market, which grew by 1.8%.

Not only that, the company managed to record revenue throughout 2023 of IDR 2.04 trillion or an increase of 8% compared to last year’s period. In terms of EBITDA, it was recorded at IDR 484.87 billion or an increase of 13% compared to 2022 which amounted to IDR 430.45 billion.

SMBR President Director Suherman Yahya said the company succeeded in closing 2023 with various good achievements in terms of financial performance, production and sustainability.

“The achievement in 2023 certainly cannot be separated from the success of the company’s strategic initiatives through the SMBRGO45 efficiency program which started from 2020 to 2023. This program is the company’s flagship program to optimize costs in various sectors and apply best practices in operations so that it can achieve positive performance. “Not only that, the company continues to synergize and coordinate with Holding SIG as strategic manager and operational implementer of marketing and sales activities,” said Suherman.

Other meeting decisions

Apart from approving the distribution of dividends, the meeting also approved the Annual Report and Ratification of the Company’s Financial Report, Approval of the Board of Commissioners’ Supervisory Duties Report for the 2023 Fiscal Year, including Ratification of the restatement of the Consolidated Financial Report for the 2022 Fiscal Year and Ratification of the Financial Report of the Micro and Small Business Funding Program (PUMK) for the 2023 Financial Year as well as providing full repayment and release of responsibility (volledig acquit et de charge) to the Company’s Directors and Board of Commissioners for the management and supervision actions that have been carried out during the 2023 Financial Year.

Other decisions include approving the Determination of Salary/Honorarium along with Facilities and Allowances for the Company’s Directors and Board of Commissioners for the 2024 Financial Year, as well as Tantiem/Performance Incentives/Special Incentives for the Company’s Directors and Board of Commissioners for the Performance of the 2023 Financial Year and the Appointment of a Public Accounting Firm to audit the Financial Statements Company Consolidation for Fiscal Year 2024 and Financial Report for the Micro and Small Business Funding Program (PUMK) for Fiscal Year 2024.

The meeting also approved the Feasibility Study Discussion regarding additional business fields for the Company; regarding Article 3 Paragraph (2) of the Company’s Articles of Association with reference to and in accordance with Financial Services Authority Regulation Number 17/POJK.04/2020 concerning Material Transactions and Changes in Business Activities as well as Amendments to the Company’s Articles of Association.

Apart from that, there are no proposals for changes to the company’s management.

Additional information

The company continues to encourage business practices that consistently pay attention to Sustainability Performance in accordance with the company’s vision to become the “Leading Green Cement Based Building Material Company in Indonesia” to achieve the Sustainable Development Goals (TPB) targets in managing impacts and maintaining the continuity of the company’s business.

Supporting the decarbonization program, the Company succeeded in reducing the intensity of carbon emissions (scope 1) from 587 kg CO2/ton cem eq in 2022 to 577 kg CO2/ton cem eq in 2023. Apart from that, SMBR was also able to increase the Thermal Substitution Rate (TSR) from 2.62% to 3.01% through increasing Alternative Fuel & Raw Material (AFR) and reducing the clinker factor by using alternative materials sourced from industrial waste.

Meanwhile, the company also participates in the Sustainable Development Goals (TPB) through the Implementation of the Social and Environmental Responsibility Program (TJSL). More broadly, implementing TJSL is not only beneficial for fostering community independence and empowerment and reducing social disparities, it is also beneficial for strengthening the carrying capacity of the environment.

Throughout 2023, the Company has distributed funds for the TJSL Program amounting to IDR 3.9 billion, an increase compared to 2022 of IDR 2.65 billion. This is in line