3,752,768 Laporan Tahunan | Semen Indonesia AR SI English 2014

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