TRADE RECEIVABLES LK SMI Q1 2016 Final Released

AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2016 AND 2015 Expressed in thousands of Rupiah, unless otherwise stated Continued - 64 - Sebelum menerima pelanggan baru, Grup menggunakan sistem penilaian secara internal untuk menilai potensi pelanggan. Untuk selanjutnya batasan yang diatribusikan kepada pelanggan ditinjau minimal 2 kali setahun. Before accepting new customer, the Group uses an internal assessment system to assess the potential customer. In addition further restrictions attributable to the customer are evaluated at least 2 times a year. Pada tanggal 31 Maret 2016, rincian pelanggan dengan nilai piutang melebihi 5 dari jumlah saldo piutang usaha adalah sebagai berikut: The details of the customer with the value of receivables exceeds 5 of the total trade receivable balance as of March 31, 2016 are as follows: Saldo piutang usaha Persentase dari total piutang usaha Trade receivable As a percentage of PelangganCustomer balance trade receivable balance PT Varia Usaha 241.708.698 8,06 Koperasi Warga Semen Gresik 196.775.206 6,56 Rincian transaksi dan saldo dengan pihak berelasi diungkapkan dalam Catatan 42. Details of related party transactions and balances are disclosed in Note 42. Umur piutang usaha adalah sebagai berikut: The aging of trade receivables is as follows: 31 Maret 31 Desember March 31, December 31, 2016 2015 Unaudited Audited Lancar 2.287.396.716 2.898.661.338 Current Lewat jatuh tempo: Overdue: 1 - 45 hari 340.560.985 310.057.398 1 - 45 days 46 - 135 hari 309.606.990 237.473.786 46 - 135 days 136 - 365 hari 26.213.292 79.769.602 136 - 365 days Lebih dari 365 hari 34.195.605 17.877.845 Over 365 days Jumlah 2.997.973.588 3.543.839.969 Total Piutang usaha yang diungkapkan di atas termasuk jumlah yang telah jatuh tempo pada akhir periode pelaporan dimana Grup tidak mengakui cadangan kerugian penurunan nilai piutang karena belum ada perubahan yang signifikan dalam kualitas kredit dan jumlah piutang masih dapat dipulihkan. Trade receivables disclosed above include amounts that are past due at the end of the reporting period for which the Group has not recognized an allowance for impairment losses because there has not been a significant change in credit quality and the amounts are still considered recoverable. Mutasi cadangan kerugian penurunan nilai piutang adalah sebagai berikut: The movement in the provision for impairment losses of receivables is as follows: 31 Maret 31 Desember March 31, December 31, 2016 2015 Unaudited Audited Saldo awal 82.993.681 72.540.759 Beginning balance Penguranganpenambahan 353.388 10.452.922 Reversaladdition Saldo akhir 82.640.293 82.993.681 Ending balance AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2016 AND 2015 Expressed in thousands of Rupiah, unless otherwise stated Continued - 65 - Dalam menentukan pemulihan dari piutang usaha, Grup mempertimbangkan setiap perubahan dalam kualitas kredit dari piutang usaha dari tanggal awal kredit diberikan sampai dengan akhir periode pelaporan. Konsentrasi risiko kredit terbatas karena basis pelanggan adalah besar dan tidak saling berhubungan. In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the end of the reporting period. The concentration of credit risk is limited as the customer base is large and unrelated. Berikut ini merupakan umur piutang usaha yang diturunkan nilainya: Age of impaired trade receivables are as follows: 31 Maret 31 Desember March 31, December 31, 2016 2015 Unaudited Audited Lewat jatuh tempo: Overdue: 1 - 45 hari 3.855.907 3.855.907 1 - 45 days 46 - 135 hari 1.630.797 1.630.797 46 - 135 days 136 - 365 hari 1.030.234 1.030.234 136 - 365 days Lebih dari 365 hari 76.123.355 76.476.743 Over 365 days Jumlah 82.640.293 82.993.681 Total Berdasarkan hasil kajian keadaan piutang masing- masing pelanggan pada akhir periode pelaporan, manajemen Grup berkeyakinan bahwa cadangan penurunan nilai telah memadai untuk menutup kemungkinan kerugian atas tidak tertagihnya piutang usaha. Based on a review of the status of the individual receivable accounts at end of reporting period, the management of the Group believes that the allowance for impairment losses is adequate to cover possible losses from uncollectible receivables. Pada 31 Maret 2016 dan 31 Desember 2015, sebesar 92 dan 92 piutang usaha dijamin dengan jaminan berupa bank garansi, deposito berjangka, asuransi kredit, dan harta berwujud tanah, bangunan dan kendaraan bermotor oleh pelanggan dengan nilai wajar masing-masing sebesar Rp2.761.040.056 dan Rp3.253.602.809. As of March 31, 2016 and December 31, 2015, 92 and 92 of trade receivables is collateralized by bank guarantees, time deposits, credit insurance, and tangible assets land, buildings and vehicles by the customers with total fair value amounting to Rp2,761,040,056 and Rp3,253,602,809, respectively. Manajemen berpendapat bahwa piutang usaha yang telah jatuh tempo tetapi belum diturunkan nilainya memiliki kualitas kredit yang baik. Management believes that trade receivables that are neither past due and impaired have good credit quality. Piutang usaha tertentu digunakan sebagai jaminan atas fasilitas pinjaman non-cash dan fasilitas kredit investasi Catatan 20. Certain trade receivables are used as collateral for non-cash loan facilities and credit investment facilities Note 20. AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2016 AND 2015 Expressed in thousands of Rupiah, unless otherwise stated Continued - 66 - 8. PIUTANG LAIN-LAIN 8. OTHER RECEIVABLES 31 Maret 31 Desember March 31, December 31, 2016 2015 Unaudited Audited Pihak ketiga 73.690.366 60.329.377 Third parties Dikurangi: Less: Cadangan penurunan nilai 3.489.769 3.511.243 Allowance for impairment losses 70.200.597 56.818.134 Pihak berelasi 29.464.219 29.251.976 Related parties Dikurangi: Less: Cadangan penurunan nilai 931.636 1.269.578 Allowance for impairment losses 28.532.583 27.982.398 Jumlah 98.733.180 84.800.532 Total Rincian transaksi dan saldo dengan pihak berelasi diungkapkan dalam Catatan 42. Details of related party transactions and balances are disclosed in Note 42. Mutasi cadangan penurunan nilai piutang lain-lain adalah sebagai berikut: The movements in the allowance for impairment losses of other receivables is as follows: 31 Maret 31 Desember March 31, December 31, 2016 2015 Unaudited Audited Saldo awal 4.780.821 11.395.847 Beginning balance Pengurangan - neto 359.416 6.615.026 Reversal - net Saldo akhir 4.421.405 4.780.821 Ending balance Berdasarkan hasil kajian keadaan akun piutang lain- lain setiap debitur pada akhir periode pelaporan, manajemen Grup berkeyakinan bahwa cadangan penurunan nilai telah memadai untuk menutup kemungkinan kerugian atas tidak tertagihnya piutang lain-lain. Based on a review of the status of the individual other receivable accounts at the end of reporting period, management of the Group believes that the allowance for impairment losses is adequate to cover possible losses from uncollectible other receivables. AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2016 AND 2015 Expressed in thousands of Rupiah, unless otherwise stated Continued - 67 - 9. PERSEDIAAN

9. INVENTORIES 31 Maret

31 Desember March 31, December 31, 2016 2015 Unaudited Audited Suku cadang 930.714.589 1.027.539.702 Spare parts Bahan baku dan penolong 864.696.970 776.043.288 Raw and indirect materials Barang dalam proses 721.966.659 400.894.282 Work in process Barang jadi 367.315.926 274.749.045 Finished goods Barang dalam perjalanan 45.051.079 36.308.556 Goods in transit 2.929.745.223 2.515.534.873 Dikurangi: Less: Cadangan persediaan usang Allowance for obsolete dan bergerak lambat 108.283.284 106.560.801 and slow moving inventories Jumlah 2.821.461.939 2.408.974.072 Total Manajemen Grup berkeyakinan bahwa cadangan persediaan usang dan bergerak lambat telah mencukupi untuk menutup kemungkinan kerugian yang timbul dari persediaan usang dan bergerak lambat. The management of the Group believes that the allowance for obsolete and slow moving inventories is adequate to cover possible losses from obsolete and slow moving inventories. Mutasi cadangan persediaan usang dan bergerak lambat adalah sebagai berikut: The movement in the allowance for obsolete and slow moving inventories is as follows: 31 Maret 31 Desember March 31, December 31, 2016 2015 Unaudited Audited Saldo awal 106.560.801 95.505.589 Beginning balance Penambahan 1.722.483 11.055.212 Additions Saldo akhir 108.283.284 106.560.801 Ending balance Pada tanggal 31 Maret 2016 dan 31 Desember 2015, persediaan tertentu dijadikan jaminan atas pinjaman tertentu. As at March 31, 2016 and December 31, 2015, certain inventories are pledged as collateral for borrowings. Pada tanggal 31 Maret 2016 dan 31 Desember 2015, persediaan Grup telah diasuransikan terhadap resiko kerugian yang disebabkan oleh bencana alam, kebakaran, dan risiko kerugian lainnya dengan nilai pertanggungan masing-masing sebesar Rp1.364.963.730 dan Rp1.468.943.965. As at March 31, 2016 and December 31, 2015, inventories of the Group are covered by insurance against the risk of loss due to natural disaster, fire, and other risks with a total coverage of Rp1,364,963,730 and Rp1,468,943,965, respectively. Menurut pendapat manajemen Grup, nilai pertanggungan asuransi tersebut telah memadai untuk menutupi kerugian yang mungkin timbul dari risiko-risiko tersebut. The management of the Group believes that the insurance coverage is adequate to cover possible losses arising from such risks. AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2016 AND 2015 Expressed in thousands of Rupiah, unless otherwise stated Continued - 68 - 10. UANG MUKA

10. ADVANCES

31 Maret 31 Desember March 31, December 31, 2016 2015 Unaudited Audited Pembelian: Purchases Lokal 108.650.878 35.305.921 Domestic Impor 33.635.248 26.079.698 Imports Lainnya 34.653.070 27.361.519 Others Jumlah 176.939.196 88.747.138 Total 11. BEBAN DIBAYAR DI MUKA 11. PREPAID EXPENSES 31 Maret 31 Desember March 31, December 31, 2016 2015 Unaudited Audited Asuransi 31.480.278 12.488.275 Insurance Sewa 10.215.267 10.157.746 Rent Lainnya 17.015.427 15.884.594 Others Jumlah 58.710.972 38.530.615 Total 12. PAJAK DIBAYAR DI MUKA 12. PREPAID TAXES 31 Maret 31 Desember March 31, December 31, 2016 2015 Unaudited Audited Entitas anak Subsidiaries Pajak Penghasilan Badan 51.973.642 55.429.890 Corporate Income Tax Pajak Pertambahan Nilai 335.572.687 326.542.785 Value Added Tax Lainnya 144.059 87.844 Others 387.690.388 382.060.519 Jumlah 387.690.388 382.060.519 Total