INCOME TAX 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 - 108 - 31 Maret 31 Maret March 31, March 31, 2016 2015 Unaudited Unaudited Laba konsolidasian sebelum Consolidated income before beban pajak penghasilan 1.243.028.579 1.500.736.866 income tax Laba entitas anak sebelum Subsidiaries’ income before beban pajak penghasilan 436.841.903 388.273.031 income tax Bagian atas laba bersih entitas Equity in net income asosiasi 10.453.045 6.740.985 of associates Disesuaikan dengan jurnal Adjusted for consolidation eliminasi konsolidasi 3.309.471 5.944.298 eliminations Laba sebelum pajak penghasilan Income before income tax - Perseroan 799.043.102 1.099.778.552 the Company Perbedaan permanen: Permanent differences: Differences between Perbedaan nilai buku fiskal dan fiscal and commercial komersial atas aset tetap 244.085.195 8.774.330 net book value of fixed assets Kesejahteraan karyawan 104.084.364 7.392.055 Employee welfare Penyisihan promosi Provision for sales promotion peningkatan penjualan 21.306.824 2.078.945 expense Pendapatan yang telah dikenakan Income subject to final tax, pajak penghasilan final 51.368.457 64.310.974 recorded on a net of tax basis Lain-lain 30.501.274 15.582.465 Others 347.729.918 49.425.179 Perbedaan temporer: Temporary differences: Differences between Perbedaan nilai buku fiskal dan fiscal and commercial komersial atas aset tetap net book value of fixed dan beban tangguhan 235.633.490 33.624.585 assets and deferred charges Aset sewa pembiayaan 1.546.821 1.255.434 Leased assets Liabilitas imbalan kerja 12.784.119 15.678.818 Employee benefits liabilities Cadangan persediaan usang Allowance for obsolete and dan bergerak lambat 115.283 184.257 slow moving inventories Allowance for impairment of Cadangan penurunan nilai piutang - 697.918 receivable Tunjangan produktivitas dan uang jasa 101.632.383 63.912.448 Productivity allowances and incentive Penyisihan lainnya 21.080.588 32.819.332 Other provisions 327.537.866 77.016.918 Laba kena pajak - Perseroan 778.851.050 1.127.370.291 Taxable income - the Company Beban pajak penghasilan Income tax expense Perseroan - kini 155.770.210 225.474.062 the Company - current Beban pajak penghasilan Income tax expense entitas anak - kini 118.101.101 106.159.951 subsidiaries - current 273.871.311 331.634.013 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 - 109 - Perhitungan beban dan utang pajak kini Perseroan adalah sebagai berikut: Current tax expense and payable of the Company are computed as follows: 31 Maret 31 Maret March 31, March 31, 2016 2015 Unaudited Unaudited Beban pajak kini 155.770.210 225.474.062 Current tax expense Dikurangi pembayaran pajak dimuka 186.737.823 154.041.633 Less prepaid taxes Utang pajak kini Catatan 25 30.967.613 71.432.429 Current tax payable Note 25 Laba fiskal dan beban pajak penghasilan kini Perseroan tahun 2014 sudah sesuai dengan Surat Pemberitahuan Pajak SPT yang disampaikan ke Kantor Pelayanan Pajak. Taxable income and current tax expense of the Company for 2014 are accordance with the Corporate Tax Returns filled with the Tax Service Office. 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 - 110 - Pajak Tangguhan Deferred Tax Dikreditkan dibebankan ke penghasilan Dikreditkan komprehensif dibebankan lain ke laporan Credited 31 Desember laba rugi charged to 31 Maret December 31, Credited other March 31, 2015 charged to comprehensive 2016 Audited income income Unaudited Liabilitas pajak tangguhan - neto Deferred tax liabilities - net Perseroan The Company Aset tetap 163.111.713 45.761.606 - 117.350.107 Fixed assets Aset sewa pembiayaan 2.755.243 309.364 - 2.445.879 Leased assets Beban tangguhan dan Deferred charges and intangible aset takberwujud 7.728.976 1.365.092 - 6.363.884 assets Liabilitas imbalan kerja 29.916.349 2.556.823 645.682 31.827.490 Employee benefits liabilities Cadangan persediaan usang dan Allowance for obsolete and slow bergerak lambat 13.899.652 23.056 - 13.922.708 moving inventories Cadangan penurunan nilai piutang 2.692.638 - - 2.692.638 Allowance for impairment of receivables Tunjangan produktivitas Productivity allowances and dan uang jasa 74.606.414 20.326.477 - 94.932.891 and incentive compensation Penyisihan lain-lain 42.489.680 635.207 - 43.124.887 Other provisions 4.480.713 70.358.897 645.682 65.232.502 Entitas anak Subsidiaries Aset tetap 219.678.292 32.304.151 - 251.982.443 Fixed assets Aset sewa pembiayaan 1.092.224 17.409 - 1.109.633 Leased assets Liabilitas imbalan kerja 53.308.935 6.722.433 - 60.031.368 Employee benefits liabilities Cadangan persediaan usang dan Allowance for obsolete and slow bergerak lambat 5.903.062 537.367 - 6.440.429 moving inventories Cadangan penurunan nilai piutang 9.045.422 383.419 - 9.428.841 Allowance for impairment of receivables Tunjangan produktivitas Productivity allowances and dan uang jasa 43.148.236 11.138.687 - 54.286.923 incentive compensation Penyisihan lain-lain 3.758.449 2.075.633 - 5.834.082 Other provisions Jumlah 103.421.964 11.429.203 - 114.851.167 Total Total liabilitas pajak tangguhan - neto 107.902.677 58.929.694 645.682 49.618.665 Total deferred tax liabilities - net Aset pajak tangguhan - neto Deferred tax assets, net Entitas anak Subsidiaries Aset tetap 63.709.578 2.585.808 - 66.295.386 Fixed assets Aset sewa pembiayaan 1.382.142 57.808 - 1.324.334 Leased assets Beban tangguhan dan Deferred charges and intangible aset takberwujud 548.931 756.338 - 1.305.269 assets Cadangan penurunan nilai piutang 4.084.793 180.346 - 4.265.139 Allowance for impairment of receivables Liabilitas imbalan kerja 75.276.540 5.925.496 - 81.202.036 Employee benefits liabilities Cadangan persediaan usang dan Allowance for obsolete and slow bergerak lambat 6.595.957 269.297 - 6.865.254 moving inventories Beban reklamasi 151.971 539.408 - 691.379 Reclamation expenses Tunjangan produktivitas Productivity allowances and dan uang jasa 54.279.200 13.087.791 - 67.366.991 incentive compensation Cadangan biaya bongkar 12.522.118 6.203.585 - 6.318.533 Allowance for dismantle cost Akumulasi rugi fiskal - 10.561.085 - 10.561.085 Accumulated fiscal loss Penyisihan lain-lain 1.913.888 603.317 - 1.310.571 Other provisions Total aset pajak tangguhan - neto 90.281.679 21.984.858 - 112.266.537 Total deferred tax assets - net Manfaat pajak tangguhan - neto 80.914.552 645.682 Deferred tax expense - net 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 - 111 - Rekonsiliasi antara beban pajak penghasilan seperti yang tercantum dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian dengan hasil perkalian laba akuntansi sebelum pajak penghasilan Perseroan dan tarif pajak yang berlaku adalah sebagai berikut: Reconciliations between income tax expense as shown in the consolidated statements profit or loss and other comprehensive income and income tax expense calculated using prevailing tax rates is as follows: 31 Maret 31 Maret March 31, March 31, 2016 2015 Unaudited Unaudited Laba konsolidasian sebelum Consolidated income before beban pajak penghasilan 1.243.028.579 1.500.736.866 income tax Penyesuaian terkait dengan konslidasi: Adjustment related to consolidation: Bagian atas laba bersih entitas asosiasi 10.453.045 6.740.985 Equity in net income of associates Disesuaikan dengan jurnal Adjusted for consolidation eliminasi konsolidasi 3.309.471 5.944.298 elimination 1.235.885.005 1.488.051.583 Beban pajak penghasilan sesuai tarif pajak 308.971.251 372.012.896 Tax calculated at statutory rate Perbedaan tarif Perseroan dengan Difference tax rate between entitas anak 30.595.043 50.492.992 the Company and its subsidiaries Pengaruh pajak atas perbedaan tetap: Tax effect of permanent differences: Differences between Perbedaan nilai buku fiskal dan fiscal and commercial komersial atas aktiva tetap 48.817.039 1.308.249 net book value of fixed assets Kesejahteraan karyawan 20.816.873 6.149.570 Employee welfare Promosi peningkatan penjualan 4.261.365 661.612 Provision for sales promotion Pendapatan yang telah dikenakan Income subject to final tax, pajak penghasilan final 24.612.509 45.555.583 recorded on a net of tax basis Lain-lain 4.565.607 22.866.175 Others 85.419.449 14.569.977 Jumlah beban pajak 192.956.759 306.949.927 Total tax expense Berdasarkan peraturan perpajakan Indonesia, Grup menghitung, menetapkan, dan membayar sendiri jumlah pajak yang terutang. SPT konsolidasian tidak diperkenankan dalam peraturan perpajakan di Indonesia. Direktorat Jenderal Pajak DJP dapat menetapkan dan mengubah kewajiban pajak dalam batas waktu lima tahun sejak tanggal terutangnya pajak. Under the taxation laws of Indonesia, the Group submits tax returns on the basis of self assessment. Consolidated tax returns are not permitted under Indonesian taxation laws. The Directorate General of Taxes DGT may assess or amend taxes within five years from the date the tax becomes due. UTSG UTSG Pajak Penghasilan Badan tahun 2012 2012 Corporate Income Tax Pada tanggal 27 Maret 2014, UTSG menerima SKPLB No. 000074061205114, yang menyatakan bahwa lebih bayar pajak penghasilan tahun 2012 sebesar Rp4.298.709. Lebih bayar tersebut telah diterima UTSG pada tanggal 30 April 2014. Pada tanggal 3 April 2014, UTSG mengajukan keberatan atas SKPLB tersebut dan menyatakan bahwa lebih bayar sebesar Rp5.451.122. On March 27, 2014, UTSG received an SKPLB No. 000074061205114, which stated that UTSG’s overpayment of 2012 Corporate Income Tax amounted to Rp4,298,709. Such overpayment was refunded by UTSG on April 30, 2014. On April 3, 2014, UTSG submitted the objection letter regarding the overpayment tax assessment letter amounting to Rp5,451,122. 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 - 112 - Pada tanggal 27 April 2015, UTSG menerima surat keputusan penolakan atas keberatan UTSG tersebut. Namun demikian pada tanggal 13 Januari 2016, UTSG kembali mengirimkan surat kepada kantor pajak untuk melakukan klarifikasi tanggapan atas surat keberatan yang telah diajukan oleh UTSG. Sampai dengan tanggal penerbitan laporan keuangan, belum terdapat tanggapan dari kantor pajak. On April 27, 2015, UTSG received the decision letter regarding the rejection of the said UTSG’s objection letter. However on January 13, 2016, UTSG submitted a letter to tax office for clarification regarding the response of tax office for the tax objection letter that was submitted by UTSG. As of the issuance date of these consolidated financial statements, there was no response yet from the tax office. IKSG IKSG Pada tanggal 22 April 2014, IKSG menerima SKPLB No. 000294061205114 atas pajak penghasilan badan tahun 2012 yang menyatakan IKSG mempunyai lebih bayar sebesar Rp2.632.427. Lebih bayar tersebut telah diterima IKSG pada tanggal 26 Mei 2014 dan selisih sebesar Rp115.299 dibebankan pada tahun 2014. On April 22, 2014, IKSG received SKPLB No.000294061205114 of 2012 corporate income tax which stated that IKSG has an overpayment amounting to Rp2,632,427. Such overpayment was refunded on May 26, 2014 and the difference amounting to Rp115,299 was charge to profit or loss in 2014. 40. LABA PER SAHAM 40. EARNINGS PER SHARE Perhitungan laba per saham dasar adalah sebagai berikut: The computation of basic earnings per share is as follows: 31 Maret 31 Maret March 31, March 31, 2016 2015 Unaudited Unaudited Laba yang dapat diatribusikan Income attributable to the equity holders kepada pemilik entitas induk untuk of parent entity for computation perhitungan laba per saham dasar 1.033.594.985 1.190.221.899 of basic earnings per share Total rata-rata tertimbang Weighted average number of saham yang beredar lembar 5.931.520.000 5.931.520.000 shares outstanding shares Laba per saham dasar, Basic earnings per share, yang dapat diatribusikan attributable to the equity holders kepada pemilik entitas induk of parent entity Rupiah penuh 174 201 full amount Perseroan tidak menghitung laba per saham dilusian karena Perseroan tidak mempunyai efek berpotensi saham biasa yang bersifat dilutif. The Company did not calculate diluted earnings per share because there was no identified effect or dilutive potential ordinary share. 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 - 113 - 41. LIABILITAS IMBALAN KERJA

41. EMPLOYEE BENEFITS LIABILITIES

Estimasi liabilitas imbalan kerja tanggal 31 Maret 2016 dan 31 Desember 2015 adalah sebagai berikut: The estimated employee benefits liabilities as of March 31, 2016 and December 31, 2015 are as follows: Imbalan kerja jangka pendek Short-term employee benefits 31 Maret 31 Desember March 31, December 31, 2016 2015 Unaudited Audited Productivity allowances, Tunjangan produktivitas, uang jasa, incentives, and Directors bonus Direktur dan Komisaris 1.000.230.785 795.534.083 and Commissioners bonuses Tunjangan pegawai lainnya 73.765.923 53.329.394 Other employee allowances Jumlah 1.073.996.708 848.863.477 Total Imbalan kerja jangka panjang Long-term employee benefits 31 Maret 31 Desember March 31, December 31, 2016 2015 Unaudited Audited Liabilitas imbalan pensiun 365.142.205 326.259.420 Pension benefits obligations Liabilitas imbalan kerja lainnya 277.008.466 279.362.286 Other employee benefits obligations Liabilitas TKHT 50.325.821 47.990.591 Old-age employee benefits obligations Jumlah 692.476.492 653.612.297 Total Program Imbalan Pasti Defined Benefits Plans

a. Dana Pensiun

a. Pension Fund

Perseroan memperoleh persetujuan dari Menteri Keuangan Republik Indonesia dengan Surat Keputusan No. B7774DJMIII.5121976 tanggal 18 Desember 1976 untuk mendirikan Dana Pensiun Semen Gresik yang merupakan dana pensiun manfaat pasti yang dikelola oleh pengurus yang terpisah, yang memberikan manfaat pasti bagi seluruh karyawan yang telah memenuhi persyaratan tertentu apabila karyawan tersebut pensiun, cacat atau meninggal dunia. The Company received an approval from the Minister of Finance of the Republic of Indonesia in Decision Letter No. B7774DJMIII.5121976 dated December 18, 1976 to establish a separate trustee-administered pension fund, Dana Pensiun Semen Gresik, from which all employees, after serving a qualifying period, are entitled to defined benefits on retirement, disability or death. Entitas anak SP dan ST masing-masing memperoleh persetujuan dari Menteri Keuangan Republik Indonesia untuk mendirikan dana pensiun manfaat pasti yang dikelola oleh pengurus yang terpisah berdasarkan Surat Keputusan No. S065MK-II1979 tanggal 3 April 1979 untuk Dana Pensiun Semen Padang dan No. S-016MK.131989 tanggal 5 Januari 1989 yang telah diubah dengan Surat Keputusan No. Kep-405KM.171999 tanggal 5 Nopember 1999 untuk Dana Pensiun Semen Tonasa yang memberikan manfaat pasti bagi seluruh karyawan yang telah memenuhi persyaratan tertentu apabila karyawan tersebut pensiun, cacat atau meninggal dunia. Subsidiaries SP and ST received approvals from the Minister of Finance of the Republic of Indonesia to establish separate trustee- administered pension funds in Decision Letter No. S065MK-II1979 dated April 3, 1979 for Dana Pensiun Semen Padang and in Decision Letter No. S-016MK.131989 dated January 5, 1989 as amended by Decision Letter No. Kep-405KM.171999 dated November 5, 1999 for Dana Pensiun Semen Tonasa, from which all employees, after serving a qualifying period, are entitled to defined benefits on retirement, disability or death.