Long Term Employee Benefits Liability

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated As of December 31, 2014 and 2013, the total commitments and contingencies transactions which consist of letters of credit and bank guarantees with related parties amounted to Rp 196,655 and Rp 138,818, respectively Note 50. As of December 31, 2014 and 2013, the average term of letters of credit is 1 up to 5 months and 1 up to 9 months, respectively, while for bank guarantees is from 14 days up to 38 months and 14 days up to 39 months, respectively.

55. Segment Information

Operating segments are reported in accordance with the internal reporting to the operating decision maker who is responsible for the allocation of resources to each segment are reported as well as assess the performace of each segment. 2014 Consumer Stock brokerage financing, Securities underwriting Property, Total Total Insurance finance lease administration and investment Trading and before after The Company underwriting and factoring fee manager Banking Service elimination Elimination Elimination Operating income - 9,582,791 - 4,010 163,796 - - 9,750,597 78 9,750,519 Interest income and profit sharing 17,868 512,628 596,013 - 9,611 1,787,102 59 2,923,281 65,897 2,857,384 Gain from investment in units of mutual fund 70,330 831,542 - 1,230 51,911 - 2,141 957,154 - 957,154 Administration fee and commission - - 147,534 - - 226,939 - 374,473 50,055 324,418 Unrealized gain loss on change in fair value of marketable securities 37,820 283,871 - - 29,996 1,357 - 274,690 - 274,690 Sales 7,199 - - - - - 173,701 180,900 - 180,900 Equity in net income of associates - net 882,451 29,354 - - - - 79,971 991,776 877,231 114,545 Sales of investment in shares 47,376 - - - - - - 47,376 - 47,376 Gain on foreign exchange - net 577 37,381 108 - 2,251 4,538 20 30,143 - 30,143 Others 71,046 101,568 20,516 259 18,957 22,066 120,628 355,040 76,295 278,745 Total income 1,057,873 11,379,135 764,171 5,499 272,020 2,030,212 376,520 15,885,430 1,069,556 14,815,874 Operating expenses - 9,556,300 - - 34,997 - - 9,591,297 50,055 9,541,242 General and administrative 16,632 335,992 179,734 1,535 52,576 555,733 56,413 1,198,615 88,965 1,109,650 Salaries and employee benefit 6,388 366,709 230,452 2,625 46,258 336,820 33,273 1,022,525 - 1,022,525 Interest expenses - - 222,504 - 5 806,882 3,226 1,032,617 42,898 989,719 Loss gain on sale of short-term investment-Net - 349,359 - - 39,422 9,494 - 379,287 - 379,287 Cost of goods sold 6,240 - - - - - 173,323 179,563 - 179,563 Provision for impairment losses of financial assets and non financial assets - 2,690 21,069 1 - 39,237 8 63,005 - 63,005 Others 5,242 50,412 34,145 248 2,576 100,141 30,551 223,315 6,515 216,800 Total expenses 34,502 10,661,462 687,904 4,409 175,834 1,829,319 296,794 13,690,224 188,433 13,501,791 Income losses before tax 1,023,371 717,673 76,267 1,090 96,186 200,893 79,726 2,195,206 881,123 1,314,083 Tax benefit expense 11,559 7,289 22,432 2 31,086 45,963 1,107 104,856 462 104,394 Net income 1,011,812 724,962 53,835 1,092 65,100 154,930 78,619 2,090,350 880,661 1,209,689 Segment assets 1,007,461 26,460,075 3,271,615 24,585 1,197,079 21,143,098 416,327 53,520,240 575,529 52,944,711 Investment in associates 11,753,438 159,012 8 301 16,937 173,800 263,467 12,366,963 11,553,173 813,790 Unallocated assets 12,638 31,185 - 157 6,564 30 10,988 61,562 - 61,562 Total assets 12,773,537 26,650,272 3,271,623 25,043 1,220,580 21,316,928 690,782 65,948,765 12,128,702 53,820,063 Segment liabilities 12,093 15,156,302 1,968,518 2,349 231,443 18,001,800 70,955 35,443,460 605,134 34,838,326 Unallocated liabilities 11,774 13,550 8,426 173 7,663 112,274 564 154,424 6,197 160,621 23,867 15,169,852 1,976,944 2,522 239,106 18,114,074 71,519 35,597,884 598,937 34,998,947 Segment assets are excluded prepaid tax and deferred tax asset whereas segment liabilities are excluded taxes payable and deferred tax liabilities - 112 - PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated 2013 Consumer Stock brokerage financing, Securities underwriting Property, Total Total Insurance finance lease administration and investment Trading and before after The Company underwriting and factoring fee manager Banking Service elimination Elimination Elimination Operating income - 11,810,876 - 3,431 136,417 - - 11,950,724 244 11,950,480 Interest income and profit sharing 27,587 485,151 605,906 - 11,404 1,384,681 61 2,514,790 36,387 2,478,403 Gain from investment in 1,043,447 - - - - - - 1,043,447 1,043,447 units of mutual fund Gain loss on sale of 6,125 490,656 - 1,137 953 - 2,076 499,041 - 499,041 short-term investment-Net 154 292,426 2,002 - 16,769 2,316 119 313,240 - 313,240 Sales - - - - - - - - - - Administration fee - - 163,887 - - 229,475 - 393,362 92,279 301,083 and commission - - - - - - 142,027 142,027 - 142,027 Gain on foreign exchange - net - 76,865 - - 27,480 129 - 49,514 - 49,514 Equity in net income of associates - net 373,889 13,335 - - - - 13,373 400,597 358,497 42,100 Others 8,392 115,630 19,658 132 38,086 7,223 100,229 289,350 58,473 230,877 Total income 1,459,286 13,284,939 791,453 4,700 174,243 1,623,824 257,647 17,596,092 545,880 17,050,212 Operating expenses - 12,372,289 - - 41,776 - - 12,414,065 92,279 12,321,786 Interest expenses and profit sharing - - 226,360 - 19 563,788 314 790,481 11,559 778,922 Salaries and employee benefit 3,039 322,357 196,245 2,574 45,748 281,953 38,113 890,029 - 890,029 General and administrative 16,982 279,425 184,238 753 43,951 453,526 31,352 1,010,227 76,395 933,832 Provision for impairment - - losses of financial assets - - and non financial assets - 292 33,532 6 - 26,234 - 7,596 - 7,596 Unrealized loss on decrease in - - fair value of securities - 290,835 - - 22,453 6,201 - 274,583 - 274,583 Cost of goods sold - - - - - - 141,628 141,628 - 141,628 Others 1,641 48,344 38,363 103 24,417 73,490 24,053 210,411 6,381 204,030 Total expenses 21,662 13,313,542 678,738 3,436 133,458 1,352,724 235,460 15,739,020 186,614 15,552,406 Income losses before tax 1,437,624 28,603 112,715 1,264 40,785 271,100 22,187 1,857,072 359,266 1,497,806 Tax benefit expense 223,673 41,781 26,483 18 16,154 65,001 2,686 375,796 192 375,604 Net income 1,213,951 70,384 86,232 1,246 24,631 206,099 19,501 1,481,276 359,074 1,122,202 Segment assets 824,541 24,638,577 3,349,932 23,058 1,002,786 17,499,102 375,614 47,713,610 508,211 47,205,399 Investment in associates 10,936,902 136,284 8 301 14,787 - 182,147 11,270,429 10,740,081 530,348 Unallocated assets 9,772 - 185 110 25,675 22 9,181 44,945 - 44,945 Total assets 11,771,215 24,774,861 3,350,125 23,469 1,043,248 17,499,124 566,942 59,028,984 11,248,292 47,780,692 Segment liabilities 13,367 13,953,423 2,100,286 1,856 119,327 14,613,978 28,468 30,830,705 541,707 30,288,998 Unallocated liabilities 222,797 24,506 8,995 184 7,546 94,221 634 358,883 6,659 365,542 236,164 13,977,929 2,109,281 2,040 126,873 14,708,199 29,102 31,189,588 535,048 30,654,540 Segment assets are excluded prepaid tax and deferred tax asset whereas segment liabilities are excluded taxes payable and deferred tax liabilities

56. Financial Risk Management Objectives and Policies

The Group’s activities are exposed to a variety of financial risks: market risk including currency risk, fair value interest rate risk and price risk, credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. Risk management is the responsibility of the Board of Directors BOD. The BOD has the responsibility to determine the basic principles of the Group’s risk management as well as principles covering specific areas, such as foreign exchange risk, interest rate risk, price risk, credit risk, and liquidity risk. In practice, implementation of risk management of the Group includes active supervision of management, implementation of policies and procedures, risk limits, the process of identification, measurement and monitoring of risk, implementation of information systems and risk management and internal control systems. - 113 -