Jakarta, March 31, 2023 – PT Cemindo Gemilang Tbk (“Cemindo”) announced its Audited FY 2022 Consolidated Financial Statement with the following key achievements:

• Revenue recorded at IDR9,687 billion
• Cost of Sales at IDR7,163 billion
• Operating profit at IDR1,060 billion
• EBITDA at IDR1,827 billion

Cemindo’s Vice President Director, Vince Erlington Indigo, said 2022 was a very challenging year for cement industry as the overall market contracted by nearly 4% in Indonesia. Market was also stagnant in Vietnam, the second biggest geography Cemindo operates and sells its product. However, we are very pleased with our performance as we were able to grow Cemindo’s revenue in both these markets and recorded overall revenue growth of 17.02% in FY 2022 compared to FY 2021.

Surindro Adi, the Commercial Director at Cemindo added, our close working with distributors, faster decision making and effective use of “Route to Market” has enabled Cemindo to increase our penetration continuously.

Commenting on the Operating Performance, Vince added that 2022 has also been a year with high increase in energy cost as well as freight costs. The increase in freight costs have resulted in Selling & Distribution costs rising up sharply in FY 2022 from FY 2021.

However, with few management initiatives on securing raw materials at competitive pricing, product innovation and coupled with slight increase in prices of Merah Putih Cement, we have been able to slightly increase our Gross Profit Margin (GPM) to 26.05% from 25.65% achieved in FY 2021. Operating profit has slightly decreased to IDR1,060 billion in FY 2022 from IDR1,117 billion FY 2021 while EBITDA of IDR1,827 billion for FY 2022 is on similar levels as FY 2021.

Ameesh Anand, the Finance Director, further added that Comprehensive Income for the years has fallen in the negative zone as Cemindo recorded ‘unrealized forex losses’ of more than Rp550 billion for FY 2022 arising due to steep depreciation of the Indonesian Rupiah in 2022. These forex losses arise as Cemindo’s main debts are in United States Dollars (USD), though stated in IDR in financial statements. USD loans have been taken as Cemindo’s has substantial export income to naturally hedge against these USD loans and USD loans carry lower interests rates compared to IDR loans. These forex losses are Unrealized and are completely non-cash in nature.

Additionally Cemindo continues to monitor its debt and optimizes financial costs where-ever it can. Management efforts have thus resulted Cemindo to reduce its interest expenses in FY 2022 to Rp628 billion from Rp681 billion spent in FY 2021; though USD interest cost have risen sharply in 2022.

Cemindo management’s continues to monitor FY 2023 with caution and optimism. We believe government initiatives in area of infrastructure growth and sustained impetus for local consumption in Indonesia and Vietnam will enable Cemindo to deliver continued growth in coming years.

Our focus continues to be growth in Indonesia and Vietnam with strict monitoring on bottom line and costs. Coupled with inflationary pressures release and interest rates going down in 2023, we are optimistic that we will deliver another year of sustained growth in FY 2023 to all our stakeholders.

About PT Cemindo Gemilang Tbk

PT Cemindo Gemilang Tbk, was established in 2011 and since 2021 has become a Listed Company whose shares is traded in the Indonesian Stock Exchange with Ticker Code: CMNT. PT Cemindo Gemilang Tbk is a producer of cement under Semen Merah Putih trademark, produced from 9 (nine) plants in all over Indonesia and also through its subsidiary, Chinfon Cement Corporation, which produces cement of Chinfon trademark from 2 (two) plants in Vietnam.

For more information, please visit www.cemindo.com and www.semenmerahputih.com or contact [email protected]

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