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Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 85 Company at a Glance On 20 December 2013, the Company signed the deed of joint company PT Krakatau Semen Indonesia KSI, which was assigned to build waste management plant in the form of slag powder as the raw materials of cement production. Further on 24 December 2013, the Company continues its Corporate Transformation process and solidify its role as the Strategic Holding by forming new subsidiary, PT Semen Gresik. In 2014, the Company continues its business development programs by commencing the construction of 2 cement mills in Padang and Rembang, as well as strengthening its information technology by establishing a subsidiary, PT Sinergi Informatika Semen Indonesia. Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 86 Milestones Company Information Year of the Company’s establishment, owned a production capacity of 250.000 tons per year design capacity The acquisition of local cement companies, PT Semen Padang Persero and PT Semen Tonasa Persero. Initial Public Offering IPO of the Company, market capitalization value of Rp0.63 trillion. The Company’s shareholding structure: Government of Indonesia: 73 Public: 27 Cemex became the strategic partner, with share ownership of 14.0. The Company’s shareholding structure became: Government of Indonesia: 51 Public: 35 Cemex: 14.0 Market capitalization value became Rp4.9 trillion Cemex increased its stake to 26, the shareholding structure became: Government of Indonesia: 51 Public: 23 Cemex: 26 Market capitalization value became Rp6.6 trillion 1957 1995 1991 1998 1999 Assuring the Move Into Next Level 86 Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 87 Milestones Blue Valley Holdings acquired 24.9 stake of Cemex in SMGR; Market capitalization value: Rp21.5 trillion. Shareholding structure: Government of Indonesia: 51 Public: 24.1 Blue Valley: 24.9 Began the stage 2 of new cement mill construction and 1 power plant. On 31 March, Blue Valley Holdings, divested all stakes in SMGR. Market capitalization value April, 2010: Rp72.31 trillion. Shareholding structure: Government of Indonesia: 51 Public: 49 Capitalization value as of 31 December 2012 at Rp94 trillion, production capacity installed at 28.5 tons per annum. Completed the construction of 2 cement mills. The acquisition of Thang Long Cement Joint Stock Company TLCC, in Vietnam. Became the Strategic Holding Company and changed the name to PT Semen Indonesia Persero Tbk Established PT Krakatau Semen Indonesia, a Joint venture company in waste management of slag powder for raw materials of cement production. Followed by the formation of PT Semen Gresik as a continuation of the Corporate Transformation process. Established PT Sinergi Informatika Semen Indonesia, followed by ground breaking of cement mill construction in Rembang and Padang, as well as the inauguration of two packing plants. 2006 2010 2012 2013 2014 Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 88 Company Excellence The Company has various additional advantages apart from the geographical location of the subsidiaries, covering distribution networks, raw material inventories, brand image, solid financial fundamentals, and competent human resources “ “ In addition to various advantages as reported in the previous sections, the Company has other advantages, which are: DISTRIBUTION REACH The excellent distribution network of the Company is propeled by 30 supporting warehouse units, 24 packing plants operating in strategic location, as well as support from 361 national distributors to ensure the stability of cement supply throughout the Archipelago. TLCC has 78 distributors across North, Central and South Vietnam. RAW MATERIALS The Company’s mining areas have the raw material reserves with the best quality and sizeable amount, to ensure the long term continuity of cement production in all of the Company’s mills. BRAND IMAGE The Company owns three brands closely held in the heart of the customers. The Company recorded the biggest domestic market share Indonesia, reaching 43.7, a reputation of excellence that reflects the srength of the Company’s corporate and brand image. FINANCIAL FUNDAMENTALS The Company succeeded in manageing strong financial fundamentals, thereby providing wider opportunity for the Company to expand the production capacity and other relevant business expansion. Company Information in Return On Equity ROE 2014 2013 2012 25.7 27.9 23.2 2014 2013 2012 in Return On Assets ROA 17.4 18.2 16.2 Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 89 Business Structure and Subsidiaries HUMAN RESOURCES Complemented with the ability of producing high quality cement, the Company also has excellent Business Structure and Subsidiaries SEMEN GERSIK 99.2 SWABINA GATRA 1.67 PT KAWASAN INDUSTRI GRESIK KIG 65.0 SGG ENERGI PRIMA 97.0 PT VARIA USAHA 24.95 PT UNITED TRACTORS SEMEN GRESIK UTSG 55.0 PT SGG PRIMA BETON 99.99 PT INDUSTRI KEMASAN SEMEN GRESIK IKSG 60.0 PT SWADAYA GRAHA 25.0 PT BIMA SERAJA ABADI 80.0 APCC 69.93 PT SEPATIM BATAMTAMA 97.0 TLCC 69.36 PT KRAKATAU SEMEN INDONESIA 50.0 PT ETERNIT GRESIK 17.6 PT SISI 85 SEMEN PADANG 99.9 SEMEN TONASA 99.9 THANG LONG CEMENT JOINT STOCK COMPANY 70.0 VARIA USAHA BAHARI 15.97 VARIA USAHA BETON 15.8 VARIA USAHA DHARMA SEGARA 11.98 VARIA USAHA LINTAS SEGARA 14.97 WARU ABADI 24.83 in Debt to Equity 2014 2013 2012 19.6 22.2 18.6 2014 2013 2012 in Debt to EBITDA 0.56 0.50 0.6 competent HR in technical engineering field and consultation services in cement industry as well as relevant industry. Total Employees Development 2014 2013 2012 6,336 6,320 6,659 Excluded the employees of Non-Cement Subsidiaries Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 90 Manajemen Proyek • Manajemen Proyek • Organization Structure Company Information Director of PUSB Rizkan Chandra Director of Production RD Johan Samudra Director of Engineering Project Suharto Business Development Sumarwanto Capex Group M. Ludfi Setyadi Raw Materials Expansion Donny A. RD Technology Product Teguh Sutrisno RD Energy Material Environment M. Yusuf RD Product Application Rudi Hermawan Technical and Productivity Heru Sasono Design Eko Wiranto Eng Know. Innovation Ahmad Aris Project Services Durain P. Project Management Rembang Project Team: Ari Wardhana, Heru Indra Wijayanto Fardhi Sjahrul Ade Plant Performance Improvement Team: Bambang Tridoso Oktanto Distribution Improvement Team: Achmed Vaival Istiadi Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 91 OOTC •• OOTC •• Organization Structure President Director Suparni Director of Commercial Amat Pria Darma Director of HR Legal Gatot Kustyadji Director of Finance Ahyanizzaman OOTC Internal Audit Group Ginarko Isnubroto Corporate Secretary Agung Wiharto CSR Wahjudi Heru Distribution Logistics Rudi Hartono Marketing Tino Darusman Strategic Procurement Mat Sulkan Center of Dynamic Learning Guntoro Strategic Performance Management Fuad Salim HR System Development Wedo Wiroaji Finance Group M. Supriyadi Legal GRC M. Soffan Heri Assets Group Suhandik Strategic ICT Adel Rahadi Innovation Boards Indrati OOTC-Vision Mission : Mufti Arimurti OOTC-Performance Improvement : Soni Asrul Sani OOTC-Special Project : Agus Subroto Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 92 Operational Areas and Distribution Map Company Information Kiln 4 units Cement Mill 6 units Kiln 4 units Cement Mill 10 units Cement Mill 1 unit Cement Mill 1 unit Kiln 1 unit Cement Mill 1 unit Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 93 Operational Areas and Distribution Map Kiln 4 units Cement Mill 6 units Integrated Cement Plant 4 Location Kiln 13 Units Cement Mill 25 Units Grinding Plant 2 Location Supporting Warehouse Spreading Packing Plant 24 Location Packing Plant Project 3 Location Ports 11 Location Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 94 Product Types and Supporting Facilities Product Types The Company produces several cement types. Main cement production is Portland Cement Type II-V Non-OPC. Additionally, the Company also produces specific and mixed cement types, for limited usage. The following are elaboration on cement types and its usage. Portland Cement Type I Also known as Ordinary Portland Cement OPC, is a hydraulic cement that widely used in general construction, such as building construction without specific requirements, among others are residentials, high-rise buildings, runways and highways. Portland Cement Type II Portland Cement Type II is cement that has resistance to sulphate and medium hydration heat. For example for buildings near the ocean, wetlands, docks, irrigation channels, mass concrete and dams. Portland Cement Type III This type of cement is developed for buildings that require a high initial compressive strength after casting process is done and require fast completion, such as for the construction of highways and freeways, high-rise buildings and airports. Portland Cement Type V Portland Cement Type V is used for the construction of buildings on landwater with high substance of sulphate and is appropriate for the installation of waste management mills, under water construction, bridges, tunnels, ports, and nuclear power plants. Special Blended Cement SBC A specific cement developed for the mega projects construction such as Surabaya-Madura Suramadu mega bridge and appropriate for the buildings construction near the seafront, packed in bulks. Portland Pozzolan Cement PPC A hydraulic cement produced by grinding the slags, gypsums and pozzolan materials. This cement is used for general construction and buildings, which requires sulphate resistance and medium hydration heat, such as bridges, highways, residences, docks, mass concretes, dams, irrigations and plates foundation. Portland Composite Cement PCC A hydraulic binder cement produced from grinding the slags, gypsums, and one or more anorganic materials. The usage of this cement types is appropriate for general concrete construction, as combination with bricks, plasterings, drainages, construction of specific buildings such as pre-cast concrete, pre-press concrete and paving blocks. Super Masonry Cement SMC A cement type that can be used for the construction of residences and irrigations with concrete structure of maximum K225, also can be used as raw material for hollow brick concrete roof tiles, paving blocks and tiles production. Oil Well Cement OWC Class G HRC A specific cement used for the construction of oil wells and natural gas with the construction of oil wells under the sea and earth. The production of OWC included Class G, High Sulfat Resistant HSR or also known as “Basic OWC”. The additives can be added for the use at certain depths and temperatures. The Portland Cement Type I, PCC, and PPC are available in retail markets, while other types are only produced by custom orders in certain amount. These products are sold primarily for domestic market and others for export. Some part of the products are sold in packs form, while the rest in bulks. Company Information Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 95 Product Types and Supporting Facilities Supporting Facilities SEMEN PADANG Operates four cement mills, with design capacity of 7.3 million tons cement per annum, located in Indarung, West Sumatera. Semen Padang also operates eight cement packing plants, which are in Teluk Bayur, Belawan, Batam, Tanjung Priok, Ciwandan, Malahayati, Lhokseumawe and Dumai, as well as 14 supporting warehouse units and 1 port. Teluk Bayur Port Capacity : 40,000 DWT Depth : 12.5 m Length : 150 m Total Docks : 3 SEMEN GRESIK Operates four mills with the design capacity of 14.4 million tons cement per annum, located in Tuban, East Java. Semen Gresik also operates and owned two ports, which are: Semen Gresik Special Ports in Tuban and Gresik. Semen Gresik operates 11 units of supporting warehouse spreading across Java and Bali, and operates five packing plants in Ciwandan, Banyuwangi, Sorong, Balikpapan and Dumai. Gresik Special Port Type : Line Jetty Length : 290.8 meter Width : 15.5 meter Capacity : 10,000 DWT Depth : 9 M LWS Tuban Special Port Dock I Type : Line Jetty Length : 175 meter Width : 45.5 meter Capacity : 7.000 DWT Depth : 8 M LWS Dock II Type : Line Jetty Length : 225 meter Width : 45.5 meter Capacity : 40,000 DWT Depth : 13 M LWS SEMEN TONASA Operates three cement mills, with design capacity of 7.8 million tons cement per annum, located in Pangkep, South Sulawesi. Semen Tonasa also operates and owned 9 cement packing plants and supported with the docs, which are in Biringkassi, Makassar, Samarinda, Banjarmasin, Pontianak, Bitung, Palu, Ambon and Celukan Bawang Bali. Semen Tonasa has 5 units of supporting warehouse. Biringkassi Port Type : Line Jetty Length : 445.5 meter Capacity : 30.000 DWT Depth : 13 M LWS Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 96 Company Information Product Types and Supporting Facilities THANG LONG CEMENT Operates one mill, with design capacity of 2.3 million tons cement per annum, located in Quang Ninh province, has its owned port Thang Long Jetty with the vessels load capacity of up to 30,000 DWT. Whereas for the sizeable vessels load capacity, the company uses Cai Lan sea port of about 3 km from its owned port. In addition, TLCC operates grinding mills located on the outskirts of Ho Chi Minh City. TLCC also has 3 cement packing plants rotary packer. Thang Long Port Type : Line Jetty Length : 160 meter Capacity : 30,000 DWT Depth : 9 M LWS Cai Lan Port Type : Line Jetty Length : 826 meter Capacity : 75,000 DWT Depth : 12 M LWS Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 97 Office Address and Information Access Please contact the following address for the request of PT Semen Indonesia Persero Tbk Annual Report, or other information. Office Address PT Semen Indonesia Persero Tbk Semen Indonesia Main Building Jl. Veteran Gresik 61122 Tel. 62-31 3981732 Fax. 62-31 3983209 Or Jakarta Representative Office The East Building, 18 th Floor Jl. DR Ide Anak Agung Gde Agung Mega Kuningan Business District, Jakarta 12950 Tel. 62-21 5261174-5 Fax. 62-21 5261176 Please contact the following for shareholders information, latest news, and general information of the Company: Investor Relations Jakarta Representative Office The East Building, 18 th Floor Jl. DR Ide Anak Agung Gde Agung Mega Kuningan Business District, Jakarta 12950 Tel. 62-21 5261174-5 Fax. 62-21 5261176 Internet Site E-mail : www.semenindonesia.com Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 98 Subsidiaries and Affiliated Companies The Company has subsidiaries, associates and affiliates companies engaged in cement related business, from cement production, distribution to cement products usage. All companies are in operating status. Company Information The Company’s Ownership in Subsidiaries, Associates, and Affiliates Companies Company Direct Indirect Activities PT Semen Padang 99.99 Cement Producer PT Semen Gresik 99.2 Cement Producer PT Semen Tonasa 99.99 Cement Producer PT Thang Long Joint Stock Company 70.00 Cement Producer PT Thang Long Joint Stock Company 2 69.36 Through TLCC Cement Producer An Phu Cement Joint Stock Company 69,93 Through TLCC Cement Producer PT SGG Energi Prima SEP 97.00 Coal mining, trading dan transportation PT SGG Prima Beton SPB 99.99 Ready used concrete production PT United Tractors Semen Gresik 55 Land mining exploration and exploitation except oil and gas PT Industri Kemasan Semen Gresik 60 Processing of primary raw materials for packaging or bags into a variety of packaging or bags with high economic value PT Kawasan Industri Gresik 65 Selling of industrial lands, selling of home- offices, leasing of ready to use mills, leasing of warehouses, offices and home-offices PT Swadaya Graha 25 Developers, civil contractors, mechanical and electrical contractors, workshops and manufactures, steel fabrications, heavy equipment leasing and maintenance services, engineering, industry and trading agents Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 99 Subsidiaries and Affiliated Companies The Company’s Ownership in Subsidiaries, Associates, and Affiliates Companies Company Direct Indirect Activities PT Varia Usaha 24.95 Cargo services; general tradings, including imports, exports, export between domestic inter-islands, also engaged in business as agents, distributors, and other trading business PT Eternit Gresik 17.51 Producing cement-fibre sheets, pannels and other building materials from cement-fibres PT Varia Usaha Beton 16.66 Concretes and other building materials industry, which consists of Ready Used Concretes batching plant mixer truck PT Waru Abadi 23.45 Trading of building materials, cargos tradings, construction woods processing services PT Varia Usaha Bahari 15.97 Loading and unloading of goods to and from the vessels, as well as heavy equipment leasing and vehicles rental PT Varia Usaha Dharma Segara 11.98 Vessels Loading Expedition EMKL, covering: arrangement of imported goods at the port, inter-island freight handlings, arrangement of export goods through the port, land transportation for: general cargo, bulk cargo, container, heavy lift PT Varia Usaha Lintas Segara 14.97 Engaged in shipping business, with the company scopes of: shippings, agents, and vessels suppliers PT Swabina Gatra 1.67 Office cleaning services, leasing of building and vehicles, travel agents, production of mineral water in packaging, as well as tourism park “Giri Wana Tirta” PT Sepatim Batamtama 97 through SP General trading, cement packing, contractors, services, and general transportation PT Bima Sepaja Abadi 80 through SP General trading and agents, cement packing, and activities related to cement tradings PT Krakatau Semen Indonesia 50 Production of ground granulated blast furnace slag PT Sinergi Informatika Semen Indonesia 85 Information System Services Notes: TLCC was acquired on 18 December 2012, with 2 subsidiaries, which are: Thang Long Joint Stock Company 2, 99.9 shares owned by TLCC An Phu Cement Joint Stock Company, 99.9 shares owned by TLCC All subsidiaries are in the preparation process of new cement mills development. Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 100 Information For Investors Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 101 The Company Go Public in 1991, Stock Split 1 : 10 in 2007. Currently, the Company’s share with the tick code of SMGR is included as member of Jakarta Mining Index, LQ 45 45 most liquid shares in IDX, Jakarta Islamic Index, Indeks Bisnis - 27, Indeks Kompas 100 and Indeks Sri Kehati. Every year, the Company distributed cash dividend with the amount based on profit earnings and the approval of GMS. “ “ Share Performance Graphs 102 Share Highlights, Dividend Payout and Share Listing Chronology 103 Shareholders Composition 104 Shareholding Structure 108 Share Ownership by the Board of Commissioners and Board of Directors 108 Dividend and Dividend Policy 109 Capital Market Condition and Company’s Share Performance 110 Name of Capital Market Institutions and Supporting Professions 112 Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 102 Information For Investors Information For Investors Share Performance of the Company in Indonesia Stock Exchange 2013 and 2014 SMGR Share Price Share price and trading volume Vs IDX Rebased January – December 2014 SMGR Share Price Share price and trading volume Vs IDX Rebased January – December 2013 22.000 20.000 18.000 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000 1 2 3 3 6 2 10 1 2 3 5 2 9 1 4 1 8 4 7 1 11 3 12 1 12 30 50.000 45.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5.000 Awal: SMGR : Rp 14.150 IHSG : 4.274,17 Volume per ‘000 – RHS 22,3 14,5 Akhir: SMGR : Rp 16.200 IHSG : 5.226,94 Price Rpshare SMGR LHS IHSG LHS Key market data IDR USD Current share price 16.200 1,30 52 week high 17.050 1,37 52 week low 13.875 1,12 Market Cap. 96.090bn 7.7242mm 22.000 20.000 18.000 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000 1 2 3 1 6 3 10 1 2 1 5 1 9 2 4 1 8 1 7 1 11 1 12 2 12 30 50.000 45.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5.000 Awal: SMGR : Rp 15.850 IHSG : 4.316,68 Volume per ‘000 – RHS -1,0 -10,7 Akhir: SMGR : Rp 14.150 IHSG : 4.274,17 Price Rpshare SMGR LHS IHSG LHS Key market data IDR USD Current share price 14.150 1,16 52 week high 19.000 1,56 52 week low 12.000 0,98 Market Cap. 83.931bn 6.885mm Jakarta Composite Index is rebased to Semen Indonesia share price Note: US 1 = IDR 12,189 as per Dec 31, 2013 middle rate BI Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 103 Share Highlights, Dividend Payout and dan Share Listing Chronology SHARE HIGHLIGHTS Share Price and Volume per Quarter in Indonesia Stock Exchange Rupiah Period 2014 Market Cap. Opening Highest Lowest Closing Shares Volume Rp billion 1st Quarter 14,500 16,500 13,875 15,800 5,931,520,000 520,311,400 93,718 2nd Quarter 16,500 17,000 14,275 15,075 5,931,520,000 578,076,605 89,418 3rd Quarter 15,075 17,050 15,025 15,425 5,931,520,000 444,139,700 91,494 4th Quarter 15,150 16,675 14,625 16,200 5,931,520,000 368,610,500 96,091 Period 2013 Market Cap. Opening Highest Lowest Closing Shares Volume Rp billion 1st Quarter 15,950 18,450 15,000 17,700 5,931,520,000 426,058,000 104,988 2nd Quarter 17,950 19,000 15,300 17,100 5,931,520,000 603,532,000 101,429 3rd Quarter 16,900 17,050 12,000 13,000 5,931,520,000 689,679,100 77,110 4th Quarter 13,300 14,700 12,600 14,150 5,931,520,000 466,588,000 83,931 SHARE LISTING CHRONOLOGY The Company listed its shares firstly through the Initial Public Offering IPO or ‘Go Public’ in Jakarta Stock Exchange now IDX on 8 July 1991. Since the IPO up to the reporting year of 2014, the Company has recorded 3 corporate actions that lead to changes in the number of issued shares, namely: • Rights Issue on 2 June 1995 that changed the total shares from 148,288,000 shares to 593,152,000 shares, accompanied by changes in the value of the authorized capital and paid-up capital. • Stock Split 1:10 on 7 August 2007 that changed the total shares to 5,931,520,000 shares. • Shares Buy-back and sellback between 13 October 2008 to 9 January 2009 for buy back and 6-7 October 2009 for sell back, which at the end did not changed the total issued shares. The corporate actions related to the shares is summarized in the following table. Description Unit Go Public 8 July 1991 Authorized Capital Increment Rights Issue Authorized Capital Increment Stock Split Share Buyback Share Sellback As of 31 Dec 2014 Authorized Capital Share 500,000,000 741,440,000 2,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000 Issued and Paid-up Capital Share 148,288,000 148,288,000 593,152,000 593,152,000 5,931,520,000 5,251,200,000 5,931,520,000 5,931,520,000 Share Buyback Share 68,032,000 Share Sellback Share 68,032,000 Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 104 CHRONOLOGY OF OTHER STOCK LISTING The Company did not has any other stock listing. SHAREHOLDERS COMPOSITION Shareholders Composition As of 31 December 2014 MANAGEMENTEMPLOYEES STOCK OPTION PROGRAMS MSOPESOP The Company never entered into Management Stock Ownership Programme MSOP nor Employee Stock Ownership Programme ESOP. Excluded of the Government, in 2014 SMGR shares ownership was acquired by several foreign institutions with the total ownership of 78,76 of non-government shares. Shareholders Composition As of 31 December 2014 Shareholders Composition of Non-Government As of 31 December 2014 51,01 78.76 38,59 0.02 0.01 19.85 9.73 1.37 0.67 Government of RI Foreign Institutions Foreign Institutions Foreign Individuals Foreign Individuals Domestic Institutions Domestic Institutions Domestic Individuals Domestic Individuals Informasi Bagi Investor Information For Investors Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 105 Shareholders Composition As of 31 December 2013 20 Biggest Shareholders On 31 December 2014, the total shares issued and paid- up was amounted to Rp593,152,000,000, consist of 5,931,520,000 shares, each valued at Rp100 per share. Shareholders Composition As of 31 December 2013 Shareholders Composition of Non-Government As of 31 December 2013 51.01 77.99 38.21 0.02 0.01 20.26 9.93 1.73 0.85 Government RI Foreign Institutions Foreign Institutions Foreign Individuals Foreign Individuals Domestic Institutions Domestic Institutions Domestic Individuals Domestic Individuals In 2014 the Company recorded 6,596 investors as shareholders. The following table illustrated the information related to the share ownerships of the Company as of 31 December 2014. Informasi Bagi Investor Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 106 No. Investors Account Holders Total Shares 1 Government of RI, cq. Finance Ministry of RI DirGen SOEs Mentoring, Finance Dept of RI 3,035,405,000 51.01 2 JPMCB-OPPENHEIMER DEVELOPING MARKET FUND- 2157804215 BUT DEUTSCHE BANK AG 159,847,300 2.69 3 BPJS Ketenagakerjaan-JHT BANK RAKYAT INDONESIA PERSERO, PT 156,661,700 2.64 4 GIC SA GOVERNMENT OF SINGAPORE BUT. STANDARD CHARTERED BANK 127,036,632 2.14 5 BNYM SANV AS CUST OF EMPLOYEES PROVIDENT FUND-2039844119 BUT DEUTSCHE BANK AG 122,253,600 2.06 6 SSB 4545 SA LAZARD EMERGING MARKET EQUITY PORTFOLIO - 214461 BUT DEUTSCHE BANK AG 84,078,000 1.42 7 JPMCB-STICHTING DEPOSITARY APG EME MRKT EQ POOL - 2157804478 BUT DEUTSCHE BANK AG 77,220,954 1.30 8 HSBC BANK PLC SA SAUDI ARABIAN MONETARY AGENCY The Hongkong and Shanghai Banking Corporation L 58,765,745 0.99 9 BBH BOSTON SA VANGRD EMG MKTS STK INFD CITIBANK, N.A 55,845,304 0.94 10 PT PRUDENTIAL LIFE ASSURANCE-REF CITIBANK, N.A 41,091,300 0.69 11 BBH LUXEMBOURG SA GENESIS EM MKTS INV CO CITIBANK, N.A 38,419,222 0.65 12 GIC SA MONETARY AUTHORITY OF SINGAPORE BUT. STANDARD CHARTERED BANK 38,407,632 0.65 13 SSB 1LND THE GENESIS GROUP TRUST FOR EMPLOYEE BENEFIT PLANS-2144 BUT DEUTSCHE BANK AG 35,132,443 0.59 14 PT Taspen Persero - THT BANK MANDIRI, PT - CUSTODY 33,405,200 0.56 15 THE BANK OF NEW YORK MELLON DR The Hongkong and Shanghai Banking Corporation L 32,091,080 0.54 16 DB SPORE DCS AC T NAVIS ASIA NAVIGATOR MASTER FUND-864134131 BUT DEUTSCHE BANK AG 27,608,200 0.47 17 PT AIA FINL - UL EQUITY CITIBANK, N.A 26,474,600 0.45 18 JPMORGAN CHASE BANK NA RE NON-TREATY CLIENTS - 2157804006 BUT DEUTSCHE BANK AG 24,370,892 0.41 19 SSB OBIH SA ISHARES MSCI EMERGING MARKETS ETF- 2144609616 BUT DEUTSCHE BANK AG 24,220,700 0.41 20 JPMCB-JPMORGAN EMERGING MARKET EQUITY FUND- 2157804201 BUT DEUTSCHE BANK AG 22,520,900 0.38 Total 4,210,857,400

70.99 6,596 Other Shareholders

1,720,662,596 29.01 GRAND TOTAL 5,931,520,000 100.00 Information For Investors Information For Investors Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 107 For 2013, the total shareholders of the Company was 6,375 investors with the 20 biggest ownership as follows: No. Investors Account Holders Total Shares 1 Government of RI, cq. Finance Ministry of RI DirGen SOEs Mentoring, Finance Dept of RI 3,025,406,000 51.01 2 GIC SA GOVERNMENT OF SINGAPORE BUT. STANDARD CHARTERED BANK 101,880,988 1.72 3 JPMCB-OPPENHEIMER DEVELOPING MARKET FUND- 2157804215 BUT DEUTSCHE BANK AG 91,923,000 1.55 4 BPJS Ketenagakerjaan-JHT BANK RAKYAT INDONESIA PERSERO, PT 88,013,000 1.48 5 SSB 4545 SA LAZARD EMERGING MARKET EQUITY PORTFOLIO - 214461 BUT DEUTSCHE BANK AG 81,763,300 1.38 6 BNYM SANV AS CUST OF EMPLOYEES PROVIDENT FUND-2039844119 BUT DEUTSCHE BANK AG 81,383,000 1.37 7 JPMCB-SCHRODER INTERNASIONAL SELECTION FUND- 2157804159 BUT DEUTSCHE BANK AG 68,324,000 1.15 8 JPMCB-EUROPACIFIC GROWTH FUND-2157804056 BUT DEUTSCHE BANK AG 62,317,000 1.05 9 BBH BOSTON SA VANGRD EMG MKTS STK INFD CITIBANK, N.A 56,750,004 0.96 10 BPJS Ketenagakerjaan Trading dh PT Jamsostek BANK NEGARA INDONESIA PERSERO, TBK 55,568,000 0.94 11 JPMORGAN CHASE BANK NA RE NON-TREATY CLIENTS - 2157804006 BUT DEUTSCHE BANK AG 52,907,798 0.89 12 BBH LUXEMBOURG SA GENESIS EM MKTS INV CO CITIBANK, N.A 51,678,822 0.87 13 SSB 1LND THE GENESIS GROUP TRUST FOR EMPLOYEE BENEFIT PLANS-2144 BUT DEUTSCHE BANK AG 47,432,443 0.80 14 JPMCB-STICHTING DEPOSITARY APG EME MRKT EQ POOL - 2157804478 BUT DEUTSCHE BANK AG 43,599,154 0.74 15 JP MORGAN CHASE BANK RE ABU DHABI INVESTMENT AUTHORITY - 215780 BUT DEUTSCHE BANK AG 42,670,029 0.72 16 JPMCB - NORGES BANK - 2157804128 BUT DEUTSCHE BANK AG 36,175,654 0.61 17 THE NORTHERN TRUST CO SA SAUDI ARABIAN MONETARY AGENCY BUT. STANDARD CHARTERED BANK 35,412,500 0.60 18 JPMCB-VIRTUS EMERGING MARKET OPPORTUNIES FUND- 2157805248 BUT DEUTSCHE BANK AG 33,927,606 0.57 19 PT PRUDENTIAL LIFE ASSURANCE-REF CITIBANK, N.A 30,813,500 0.52 20 PT AIA FINL - UL EQUITY CITIBANK, N.A 29,929,500 0.50 Total 4,117,875,298

69.43 6,375 Other Shareholders

1,813,644,702 30.57 GRAND TOTAL 5,931,520,000 100.00 Information For Investors Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 108 Shareholding Structure Note: Up to 31 December 2014 TLCC has 2 subsidiaries, namely: 1. Thang Long Joint Stock Company 2 - 99,9 shares is owned by TLCC 2. An Phu Cement Joint Stock Company - 99,9 shares is owned by TLCC The approval of PT Semen Gresik from Ministry of Justice and Human Rights dated 10 January 2014 Shares Ownership by the Board of Commissioners and Board of Directors For 2014, one of the Company’s Directos has the share ownership of Semen Indonesia in limited amount. Meanwhile, other members of the Board of Commissioners and other Directors, including its main families, do not hold any shares ownership of the Company, both directly or indirectly, as illustrated in the following table. See also the “Corporate Governance Report, Board of Directors Shares Ownership” PUBLIC 48.99 PT SEMEN GRESIK INDUSTRI SEMEN 99.23 PT SEMEN TONASA INDUSTRI SEMEN 99.99 7 SUBSIDIARIES NON CEMENT INDUSTRY THANG LONG CEMENT INDUSTRI SEMEN 70.00 2 SUBSIDIARIES NON CEMENT INDUSTRY GOVERNMENT OF REPUBLIC OF INDONESIA 51.01 PT SEMEN PADANG INDUSTRI SEMEN 99.99 Information For Investors