315,463 Laporan Tahunan | Semen Indonesia AR SI English 2014

Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 201 Financial Performance Review The Company also placed cash and cash equivalents to support working capital requirements for the purchase of raw materials, and other capital expenditures in rupiah. This was done to enhance preparedness of plants’ operations in anticipation of growth of domestic cement demands in the future. The Company’s cash and cash equivalents were mainly placed as time deposits with sound banks, among others: PT Bank Negara Indonesia Persero Tbk, PT Bank Rakyat Indonesia Persero Tbk, PT Bank Mandiri Persero Tbk, PT Bank Tabungan Negara Persero, PT Bank Bukopin Tbk, and others. For the placement of funds, the Company received interest income, with interest rate applicable for time deposits in rupiah at a range of 4.00-11.0 see also discussion under “Other RevenuesExpenses”. Trade Receivables The Company’s trade receivables amounted to Rp3,301 billion or up 16.9 from Rp2,825 billion as of the end of 2013. The increase was mainly due to the increase of the Company’s operations activities to meet customers’ demands. The increase of trade receivables was also influenced by the implementation of marketing strategies. The average receivables turnover in 2014 was 41 days. However, with the support of information technology, the Company was able to maintain the quality of receivables, robustly manage the receivables, and keep high level of collectability. Therefore, the amount of reserves allocated to anticipate and offset value impairment of receivables remained at a reasonable level in accordance with the Company’s policies. The following table presents percentage of receivabels to total reveneus in 2014, which reached 12.23. Although higher than 2013, the composition of receivables past due was increased by 3.4 compared to 11.5 in 2013. Cash and Cash Equivalents 2014 2013 Change Current 2,932,746 88.8 2,538,995 89.9 15.5 Past due 1-45 days 365,438 8.0 205,169 7.3 29.4 46-135 days 63,654 1.9 24,485 0.9 160.0 136-365 21,369 0,6 37,211 1.3 -41.6 Over 365 days 90,580 2.7 89,419 3.2 1.3 Allowance for Impairment 72,541 -2.2 70,243 -2.5 3.4 Trade Receivables-Net 3,301,247 100.0 2,825,109 100.0 16.9 Revenue 26,987,035 24,501,241 10.1 Trade Receivables-Net Revenue 12.23 11.53 6.1 Cash and cash equivalents increased due to the increase of cash from operating activities Inventories Net inventories as of the end of 2014 was amounted to Rp2,812 billion or increased by 6.3 compared Management Discussion and Analysis