42.1 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 Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 202 to 2013 position of Rp2,646 billion. The balance of inventories consisted of net spare parts amounting to Rp1,164 billion, raw and indirect materials amounting to Rp832 billion, work in progress amounting to Rp538 billion, finished goods amounting to Rp242 billion, and goods in transit amounting to Rp132 billion. The increase of inventories closely followed the declining market demands, which caused the Company to hold the supply delivery to customers or distributors. The low market demands was addressed by cutting the production activities, and the Company moved to realize the maintenance program on production facilities in several of its production units. Non-Current Assets Non-Current Assets Composition in Rp million Non-Current Assets 2014 2013 Change Assets 39,544 0.2 84,380 0.4 53.1 Investments in Associates 146,980 0.6 127,510 0.6 15.3 Investment Properties 183,318 0.8 48,655 0.2 276.8 Fixed Assets- Net 20,221,067 89.2 18,862,518 90.6 7.2 Deferred Charges - Net 113,317 0.5 100,627 0.5 12.6 Investment advances 531,935 2.3 214,473 1.0 148.0 Intangible Assets 1,103,697 4.9 1,158,475 5.6 -4.7 Other Assets 326,264 1.4 224,136 1.1 45.6 Total Non-Current Assets 22,666,121 100.0 20,820,774 100.0 8.9 In 2014, non-current assets consisted mainly of 89.2 fixed assets amounted to Rp20,221 billlion and 4.9 intangible assets amounted to Rp1,104 billion. Therefore, the increase in these accounts will significantly affected the total non-current assets. As os the end of 2014, non-current assets was stood at Rp22,666 billion, up 8.9 compared to Rp20,821 billion as of the end of 2013. The increase of non- current assets was contributed by the increase of net fixed assets by 7.2 to Rp20,221 billion, mainly due to the project activities of cement plant construction, construction of new power plant, production facility building projects, and distribution supporting facility projects see also “Strategic Project Development” and “Capital Expenditure” sections. Fixed Assets The Company’s fixed assets consisted of land, buildings, and production equipment. The fixed assets are grouped into two categories, assets owned by the Company and leased assets. The total value of net assets owned by the Company in 2014 was Rp20,221 billion, up 7.2 from the previous year of Rp18,863 billion. The increase was in line with the completion of new plants, acquisition of subsidiaries, and construction of packing plants and other buildings, as well as the increase in leased assets to support production activities or to replace unproductive leased assets. Tinjauan Kinerja Financial Performance Review