SMGR CORP Presentation Oct 2013 Published Humas Website 101013

(1)

(2)

INDONESIA’S CEMENT INDUSTRY: NOW and THE FUTURE

SMGR Corporate Presentation

OCTOBER 2013

(3)

Together We Build a Better Future

2 1. SEMEN INDONESIA

27.7 mn ton

- Semen Padang :

6.4 mn ton

- Semen Gresik :

14.0 mn ton

- Semen Tonasa:

7.3 mn ton

2. Semen Andalas

2)

_{1.6 mn ton}

3. Semen Baturaja

1.3 mn ton

4. Indocement TP

20.5 mn ton

5. Holcim Indonesia

10.4 mn ton

6. Semen Bosowa

3.6 mn ton

7. Semen Kupang

0.5 mn ton

TOTAL

65.6 mn ton

• Design Capacity

: 60.2 mio tons

65.6 mio tons

67.3 mio tons

• Production Capacity

: 54.2 mio tons

59.0 mio tons

60.5 mio tons

• Domestic Growth

: 14.5%

6.0%

• Domestic Utilization

: 100%

99%

100%

• Supply



Domestic

: 54.9 mio tons

59.3 mio tons

60.5 mio tons



Export

: 0.2 mio tons

0.2 mio tons



Import

: 0.7 mio tons

_{0.5 mio tons}

_{1.0 mio tons}

1)

Based on the Company’s forecast

2) Imported cement by PT Semen Andalas (1.0 mio ton) and clinker by Bosawa and Kupang

3) Imported cement & clinker

Singapore Kuala Lumpur

SMGR

2

1

3

4

5

1

6

7 DOMESTIC CAPACITY (2013

)

CEMENT INDUSTRY

2012

2013F

1)

_2014F

1)

CEMENT INDUSTRY AT A GLANCE

(4)

‘000 tons

ton ‘000

2012

2013F

2014F

2015F

2016F

2017F

Installed Capacity

60,270

65,600

67,300

76,500

87,700

92,200

Real Production

54,243

59,040

60,570

68,850

74,545

78,370

Consumption

54,964

58,262

61,758

65,463

69,391

73,554

Surplus/deficit

-721

778 -1,188

3,387

5,154

4,816

Domestic Utilization

100%

99%

100%

95%

93%

94%

Export

200 Domestic

Consumption Growth

14.50%

6%

DOMESTIC DEMAND VS NATIONAL CAPACITY (2012

–

2017)

0

20.000

40.000

60.000

80.000

100.000 2012

2013F

2014F

2015F

2016F

2017F

(5)

Together We Build a Better Future

4

Source: Deutsche, Indonesia Cement Association

223 kg

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800 C

hin

_a

Sin

_ga

po

re

M

ala

ys

_ia

Vie

tn

_am

Th

aila

nd

In

do

ne

sia

Ph

ilip

es

In

dia

kg/capita

(6)

Source: Indonesian Cement Association & BPS Statistic

Growth

:

1.1%

Growth

:

9.7%

Growth

:

4.2%

Growth

:

1.8%

Growth

:

6.6%

Growth

:

5.8%

Growth

:

19.4%

Domestic consumption (LHS)

GDP growth % (RHS)

(mio tons)

40.8

48.0

54.9

41.5

39.1

27.2

27.5

30.2

31.5

32.1

34.2

38.1 6.10%

5.90%

6.80%

5.6%

4.7%

5.1%

5.4%

4.4%

6.3%

6.1%

4.60%

6.50%

5.3%

14.5%

6.0%

11.5%

4.2%

9.7%

2.5%

6.6%

1.8%

1.1%

5.8%

17.7%

0.0

10.0

20.0

30.0

40.0

50.0

60.0 2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

9M2013

0.0%

10.0%

20.0%

Cement growth % (RHS)

(A)

INDONESIA

’S

SOLID ECONOMIC AND DOMESTIC CEMENT CONSUMPTION

(7)

Together We Build a Better Future

21.0

6.5

18.1

1.0

16.9

1.9

20.0

2.3

22.7

3.0

23.7

3.5

23.7

3.8

25.2

5.0

25.5

6.0

26.9

5.1

28.2

6.0

32.2

5.9

32.8

6.2

34.2

6.6

39.2

8.8

44.1

10.8

32.0

8.6

0

5

10

15

20

25

30

35

40

45 1997

1999

2001

2003

2005

2007

2009

2011

9M2013

Bagged Cement

Bulk Cement

Bag and Bulk cement consumption (million tons)

6

Source: Indonesia Cement Association and the Company’s data

(8)

Retail (residential) sector is the largest

consumer of cement in Indonesia

Bag

80%

Bulk

20%

Key Drivers of Domestic cement demand:

• National Economic Growth

• Favorable Interest Rate Environment

• Infrastructure Expansion

• Per Capita Consumption increase from

current low levels

• Ready-mix (infrastructure):

±

60%

• Fabricator (pre-cast, fiber cement, cement based industry):

±

35%

• Projects (mortar, render):

±

5%

• Housing:

±

90%

• Cement based industry:

±

10%

±

Source: Internal Research

(9)

Together We Build a Better Future

8 MARKET UPDATE

SMGR Corporate Presentation

(10)

Papua

Bali & N T

Sulawesi

Kalimantan

Population Distribution (2012)

Sumatera

21.3%

Java

57.5.%

8.4%

5.8%

5.5%

_1.5%

REGION

MARKET SHARE (%)

SMGR

INTP

SMCB

BSWA ANDLS BTRJA

KPG

1. JAVA

39.3

39.8

18.8

2.0 -

-2. SUMATERA

45.5

12.6

13.6

3.0

16.0

10.0 -3. KALIMANTAN

52.1

27.9

10.5

9.0 -

-4. SULAWESI

64.4

13.0

0.9

22.0 -

-5. NUSA TENGGR.

41.8

32.9

3.6

15.7 -

6.0 6. EASTERN IND.

54.8

21.9

1.0

22.3 -

-TOTAL

INDONESIA

43.8

30.5

14.5

5.4

3.3

2.0

0.4 

SG

SP

ST

1

2

3

4

5

6 21.1%

7.6%

7.2%

6.0 2.1%

Java

56.1%

Sumatera

Cement Distribution (9M 2013)

Domestic Market Share (9M-2013)

(11)

Together We Build a Better Future

*) Source: Indonesia Cement Association, un-audited figures

10 AREA

9M 2013

9M 2012

CHANGE (%)

Jakarta

3,884,131

3,652,575

6.3 Banten

2,499,336

2,336,819

7.0 West Java

6,084,743

5,780,596

5.3 Central Java

4,893,529

4,436,791

10.3 Yogyakarta

700,955

592,643

18.3 East Java

5,245,242

4,968,752

5.6 Total Java

23,307,937

21,768,175

7.1 Sumatera

8,765,522

8,682,181

1.0 Kalimantan

3,144,812

2,936,593

7.1 Sulawesi

2,989,298

2,894,085

3.3 Nusa Tenggara

2,493,520

2,295,724

8.6 Maluku & Papua

878,039

891,061

(1.5)

TOTAL

INDONESIA

41,579,127

39,467,820

5.3 Export Cement

106,240

74,736

42.2 Export Clinker

396,934

100,416

295.3 Total Export

503,174

175,152

187.3 GRAND TOTAL

42,082,301

39,642,972

6.2 9M 2013

–

Domestic Consumption

(mio tons)

DESCRIPTION

9M-13

9M-12

CHANGE

(%)

DOMESTIC

18,231,231

15,956,147

14.3 Semen Indonesia

9,501,700

8,083,482

17.5 Semen Padang

5,002,151

4,730,216

5.7 Semen Tonasa

3,727,379

3,142,449

18.6 EXPORT

268,928

45,946

485.3 GRAND TOTAL

18,500,159

16,002,093

15.6 Industry Sales Type (mio tons)

9M-13

9M-12

YoY Change

Bag

32.9 (79.1%)

32.0 (81.1%)

2.8%

Bulk

8.6 (20.9%)

7.4 (18.9%)

16.9%

9M 2013 - SMGR Sales Volume

(million tons)

MARKET UPDATE - Cement Consumption 9M-2013

SMGR Sales Type (mio tons)

9M-13

9M-12

YoY Change

Bag

13.9 (76.7%)

12.6 (79.4%)

10.4%

Bulk

4.2 (23.3%)

3.2 (20.6%)

29.2%

(12)

COMPANY PROFILE

SMGR Corporate Presentation

(13)

Together We Build a Better Future

12 

1957 : Inauguration of Gresik I, installed capacity of 250,000 ton cement per annum



1991 : Initial Public Offering, Market Cap.: IDR0.63tn, resulting shareholding structure post IPO:

● Government of Republic of Indonesia: 73%

● Public: 27%



1995 : Acquisition of PT Semen Padang (Persero) and PT Semen Tonasa (Persero)



1998 : Cemex became a strategic partner, Market Cap.: IDR4.9tn



2006 : Blue Valley Holdings bought

Cemex’s

24.9% stake in SMGR, Market Cap.: IDR21.5tn



2010 : In March 31, Blue Valley Holdings sold all of its stake ownership in SMGR, Market Cap per April 30, 2010: IDR72.1tn



2011 : Total installed capacity of 20.00mm tons, Market Cap per June 29, 2012: IDR67.0tn



2012 : Acquisition of Thang Long Cement Vietnam, Total installed capacity of 2.3mm tons, Market Cap Dec 19

_{, 2012: IDR91.9tn}

BRIEF HISTORY

0.0

5.0

10.0

15.0

20.0

25.0

30.0

19

57 -

19

70 -

19

80 -

19

84

19

85

19

86 -

19

90 -

19

95

19

97

19

98 -

20

06

20

07

20

08

20

09

20

10

20

11

20

12 SMGR CAPACITY BUILD-OUT (MM TONS)

Pre-consolidated capacity

Post-consolidated capacity

Installed capacity: 25.3 mio tons (2012)

including TLCC

_

(14)

Public

The Government of the Republic of Indonesia

PT Semen Indonesia (Persero) Tbk.

PT Semen Padang

PT Semen Tonasa

OWNERSHIP STRUCTURE

¹ As of Dec 18, 2012

51.01%

48.99%

99.99%

Name

Activities

% Ownership

1. Igasar

Cement distribution & Trading

12.00%

2. Sepatim B

General trading, cement packaging 85.00%

3. Bima SA

General trading, cement packaging 80.00%

4. SUPS

Cement Packaging

10.00%

Name

Activities

% Ownership

1. UTSG

Limestone & Clay Mining

55.00%

2. IKSG

Cement Packaging

60.00%

3. KIG

Industrial Estate

65.00%

4. Swadaya Gra

Steel fabrication, contractor

25.00%

5. Varia Usaha

Transport and general trading

24.90%

6. Eternit Gresik

Building materials

17.60%

7. SGG Prima Coal Trading Coal

99.99%

8. SGG Prima Beton Ready Mix Concrete

99.99%

Thang Long Cement, VN

70.00%

PT Semen Gresik

Name

Activities

% Ownership

1. UTSG

Limestone & Clay Mining

55.00%

2. IKSG

Packaging Paper

60.00%

3. KIG

Industrial Estate

65.00%

4. Swadaya Graha Conyractor & Machine Fabricator 25.00%

5. Varia Usaha

Transport and general trading

24.90%

6. Eternit Gresik

Building materials

17.60%

7. SGG Energy Prima Coal Mining and Trading

97.00%

8. SGG Prima Beton

Ready Mix Concrete

99.99%

(15)

Competitiveness of Semen Indonesia

Integrated Cement Plant

4 location

Kiln

13 Unit

Cement Mill

22 Unit

Grinding Plant

2 location

Cement Mill

4 Unit

Warehouse

30 location

Packing Plant

21 location

Sea Port

11 location

Kiln

1 unit

Cement

Mill

1 unit

Kiln

4 unit

Cement

Mill

6 unit

Kiln

4 unit

Cement

Mill

9 unit

Grinding

Plant

1 unit Cement

Mill

Kiln

4 unit

Cement

Mill

6 unit

Grinding

Plant

3 unit Cement

Mill

(16)

FINANCIAL UPDATE

SMGR Corporate Presentation

(17)

Together We Build a Better Future

16 EBITDA (Rp billion)

NET INCOME (Rp billion)

EBITDA Margin

(%)

FY07

FY08

FY09

FY10

FY11

FY12

29.7

31.7

33.2

34.6

33.0

35.0 NET INCOME Margin (%)

FY07

FY08

FY09

FY10

FY11

FY12

18.5

20.7

23.1

25.3

24.0

24.7 Description

(Rp bn)

FY 2011

FY 2012

Change

(%)

Net Revenue

16,379

19,598

19.7 Cost of Revenue

8,892

10,300

15.8 Gross Profit

7,487

9,297

24.2 Operating Expenses

2,595

3,116

20.1 Operating Income

4,892

6,181

26.4 EBITDA

2)

_5,402

_6,869

_27.2

Net Income

3,925

4,847

23.5 EPS (Rp)

662

817

23.5 FINANCIAL SUMMARY: FY2012 RESULTS

4847

3,925

3,633

3,326

2,524

1,775

0 1,000

2,000

3,000

4,000

5,000

2007

2008

2009

2010

2011

2012

5,402

4,970

4,773

3,867

2,849

6,869

0 1,000

2,000

3,000

4,000

5,000

6,000

7,000

(18)

FINANCIAL HIGHLIGHT

–

1H2013

Description

(Rp bn)

1H2012

1H2013

Change

(%)

Revenue

8,658

11,422

31.9 Cost of Revenue

4,696

6,275

33.6 Gross Profit

3,961

5,146

29.9 Operating Expenses

1,318

1,779

35.0 Operating Income

2,644

3,366

27.3 EBITDA

2,893

3,858

33.3 Net Income

2,103

2,584

22.9 EPS (full amount)

355

436

22.9 Ratio (%)

Formula

1H2012

1H2013

Ebitda Margin

Ebitda / Revenue

33.4

33.8 Interest Coverage (x)

Ebitda / Interest Expense

237.0

24.9 Total Debt to Equity

a)

_{Total Debt / Total Equity}

_15.8

_22.2

Total Debt to Asset

a)

_{Total Debt / Total Asset}

_10.4

_15.5

(19)

Together We Build a Better Future

Cash balance (IDR bn)

Total debt (IDR bn)

3,905

3,682

₃₃₁₇

3,846

5,283

2008

2009

2010

2011

2012

3,850

251

199

686 1,871

2008

2009

2010

2011

2012

* Include short term investment

Debt/EBITDA

Return on Assets

0,06x

2,00x

0,35x

0,04x

0,14x

0.56x

2008

2009

2010

2011

2012

The projected adjusted debt/EBITDA of 2.0x to

maintain rating level from Moody’s Investors

Service.

18.2%

24.0%

25.8%

23.5%

_20.1%

2008

2009

2010

2011

2012

18 STRONG BALANCE SHEET AND RETURNS

(20)

50%

55%

50%

_45%

2007

2008

2009

2010

2011

2012

Average: 50%

SMGR DIVIDEND PAY OUT RATIO IN THE LAST 6 YEARS

REGULAR DIVIDENDS



Key determinants of

dividend policy:

• Historical dividend payout

trends

• Comparison with peers

• Projected cash-flows

available for dividends

(after taking into account

potential expansionary

capex etc)

• Analyst and investor

expectations

REGULAR DIVIDEND PAYMENTS WITH ATTRACTIVE YIELD

887,7

1261,7

1829,5 1816,7

1962,7

2181,3

0,0

500,0

1000,0

1500,0

2000,0

2500,0

2007

2008

2009

2010

2011

2012

Total Dividen Pay Out

(21)

Together We Build a Better Future

20 STRATEGIC PROJECTS

SMGR Corporate Presentation

(22)

SMGR

THE OVERALL

STRATEGY

COMBINES

6 CRITICAL

ELEMENTS

1. Undertake Capacity Growth

2. Manage Energy Security

3. Enhance Company Image

4. Move Closer To The Customer

5. Enable Corporate Growth

6. Manage Key Risks

(23)

Together We Build a Better Future

22 Tuban’s ie

Pyroprocessing Tonasa V

Jetty Extension Area

T

u

b

a

n

T

o

n

a

sa

T

o

n

a

sa

ESP Power Plant

These strategic projects will ensure sustainability of

the Company’s market leadership

Preheater Tuban IV

Raw Mill Dept. Tonasa V

New Plants

Location

Capacity

(mn tons)

Investment

(US$ mn)

Construction

Start

Completed

Indarung VI-SumBar

3.0

352 2013

Q4-2015

Rembang-Java 2

3.0

403 2013

Q2-2016

TOTAL CAPEX

6.0

755

(24)

17.1

18

19

20.2

25.3

30

31.8

33.3

39.3

40.8 2007 2008 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F

Installed Capacity

(25)

Together We Build a Better Future

CONCLUSION: WHY SMGR?

SMGR Corporate Presentation

OCTOBER 2013

(26)

Outstanding performance

Experienced

management

team

Conservative

capital

structure and

financial

policies

Robust cash flow

generation

Outstanding

business

performance

Favorable

industry

outlook



Outstanding business performance

–

Leading cement player in Indonesia with over 43.8% market share based on

sales volume for 8M-2013 and approximately 41% share of total installed

cement capacity (Source: Indonesia Cement Association (“ASI”))

–

Strategically plants location is close to key markets throughout the country

–

As of Dec 2012, acquired Thang Long Cement Company, Vietnam by 70%

share with installed capacity 2.3 mio tons per annum

–

Substantial growth opportunities through expansion and optimization

–

Superior distribution network and strong brands recognition

–

Long-term access to raw materials for cement production and coal for fuel

consumption

–

Concerns on environmental and Corporate Social Responsibility programs to

ensure sustainable growth.



Favourable industry outlook

–

Cement consumption pretty much in-line with Indonesian economic growth

–

Real estate and infrastructure projects and declining interest rates key

demand drivers

–

High barriers to entry (plant, distribution and brand investment costs)

–

Disciplined investment on supply side



Robust cash flow generation

–

Historically strong revenue, margin and price trends

–

High plant utilization and strong focus on cost and revenue management



Conservative capital structure and financial policies

–

[Investment grade-like credit metrics]

–

Conservative capital structure policy; low use of leverage

–

Access to capital markets for expansion initiatives



Experienced management team

–

Experienced and successful management team

Strengths of SMGR

SMGR’s COMPARATIVE & COMPETITIVE ADVANTAGE DRIVE

S SMGR TO BE

THE MARKET LEADER IN INDONESIA

(27)

Together We Build a Better Future

26

Main Office: Semen Gresik Tower Jln. Veteran Gresik 61122 –Indonesia Phone: (62-31) 3981731 -2, 3981745 Fax: (62-31) 3983209, 3972264

Jakarta Office:

The East Building, 18th_Floor,

Jln. DR. Ide Anak Agung Gde Agung Kav. E3.2 No.1, Mega Kuningan, Jakarta 12950–Indonesia

Phone : (62-21) 5261174–5 Fax : (62-21) 5261176

www.semenindonesia.com

THANK YOU

IMPORTANT NOTICE

THIS PRESENTATION IS NOT AND DOES NOT CONSTITUTE OR FORM PART OF, AND IS NOT MADE IN CONNECTION WITH, ANY OFFER FOR SALE OR SUBSCRIPTION OF OR SOLICITATION, RECOMMENDATION OR INVITATION OF ANY OFFER TO BUY OR SUBSCRIBE FOR ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT, COMMITMENT OR INVESTMENT DECISION WHATSOEVER.

THE SLIDES USED IN THIS PRESENTATION ARE STRICTLY CONFIDENTIAL AND HAVE BEEN PREPARED AS A SUPPORT FOR ORAL DISCUSSIONS ONLY. THE INFORMATION CONTAINED IN THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER PERSON, IN WHOLE OR IN PART.

This presentation includes forward-looking statements, which are based on current expectations and forecast about future events. Such statements involve known / unknown risks uncertainties and other factors, which could cause actual results to differ materially from historical results or those anticipated. Such factors include, among others:

● economic, social and political conditions in Indonesia, and the impact such conditions have on construction and infrastructure spending in Indonesia;

● the effects of competition;

● the effects of changes in laws, regulations, taxation or accounting standards or practices;

● acquisitions, divestitures and various business opportunities that we may pursue;

● changes or volatility in inflation, interest rates and foreign exchange rates;

● accidents, natural disasters or outbreaks of infectious diseases, such as avian influenza, in our markets;

● labor unrest or other similar situations; and

● the outcome of pending or threatened litigation.

We can give no assurance that our expectations will be attained.

DISCLAIMER

The information contained in this report has been taken from sources which we deem reliable. However, none of PT Semen Indonesia (Persero) Tbk and/or its affiliated companies and/or their respective employees and/or agents make any representation or warranty (express or implied) or accepts any responsibility or liability as to, or in relation to, the accuracy or completeness of the information and opinions contained in this report or as to any information contained in this report or any other such information or opinions remaining unchanged after the issue thereof.

We expressly disclaim any responsibility or liability (express or implied) of PT Semen Indonesia (Persero) Tbk, its affiliated companies and their respective employees and agents whatsoever and howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither PT Semen Indonesia (Persero) Tbk, its affiliated companies or their respective employees or agents accepts liability for any errors, omission or mis-statements, negligent or otherwise, in the report and any liability in respect of the report or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expresses disclaimed.

(1)

SMGR

THE OVERALL

STRATEGY

COMBINES

6 CRITICAL

ELEMENTS

1. Undertake Capacity Growth

2. Manage Energy Security

3. Enhance Company Image

4. Move Closer To The Customer

5. Enable Corporate Growth

6. Manage Key Risks

(2)

Tuban’s ie

Pyroprocessing Tonasa V

T

u

b

a

n

T

o

n

a

sa

T

o

n

a

sa

Preheater Tuban IV

Raw Mill Dept. Tonasa V

New Plants

Location

Capacity

(mn tons)

Investment

(US$ mn)

Construction

Start

Completed

Indarung VI-SumBar

3.0

352 2013

Q4-2015

Rembang-Java 2

3.0

403 2013

Q2-2016

TOTAL CAPEX

6.0

755

(3)

17.1

18

19

20.2

25.3

30

31.8

33.3

39.3

40.8 2007 2008 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F

Installed Capacity

(4)

CONCLUSION: WHY SMGR?

SMGR Corporate Presentation

OCTOBER 2013

(5)

Outstanding performance

Experienced

management

team

Conservative

capital

structure and

financial

policies

Robust cash flow

generation

Outstanding

business

performance

Favorable

industry

outlook



Outstanding business performance

–

Leading cement player in Indonesia with over 43.8% market share based on

sales volume for 8M-2013 and approximately 41% share of total installed

cement capacity (Source: Indonesia Cement Association (“ASI”))

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Strategically plants location is close to key markets throughout the country

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As of Dec 2012, acquired Thang Long Cement Company, Vietnam by 70%

share with installed capacity 2.3 mio tons per annum

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Substantial growth opportunities through expansion and optimization

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Superior distribution network and strong brands recognition

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Long-term access to raw materials for cement production and coal for fuel

consumption

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Concerns on environmental and Corporate Social Responsibility programs to

ensure sustainable growth.



Favourable industry outlook

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Cement consumption pretty much in-line with Indonesian economic growth

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Real estate and infrastructure projects and declining interest rates key

demand drivers

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High barriers to entry (plant, distribution and brand investment costs)

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Disciplined investment on supply side



Robust cash flow generation

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Historically strong revenue, margin and price trends

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High plant utilization and strong focus on cost and revenue management



Conservative capital structure and financial policies

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[Investment grade-like credit metrics]

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Conservative capital structure policy; low use of leverage

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Access to capital markets for expansion initiatives



Experienced management team

Strengths of SMGR

SMGR’s COMPARATIVE & COMPETITIVE ADVANTAGE DRIVE

S SMGR TO BE

THE MARKET LEADER IN INDONESIA

(6)

Main Office: Semen Gresik Tower Jln. Veteran Gresik 61122 –Indonesia Phone: (62-31) 3981731 -2, 3981745 Fax: (62-31) 3983209, 3972264

Jakarta Office:

The East Building, 18th_Floor,

Jln. DR. Ide Anak Agung Gde Agung Kav. E3.2 No.1, Mega Kuningan, Jakarta 12950–Indonesia

Phone : (62-21) 5261174–5 Fax : (62-21) 5261176

www.semenindonesia.com

THANK YOU

IMPORTANT NOTICE

● economic, social and political conditions in Indonesia, and the impact such conditions have on construction and infrastructure spending in Indonesia;

● the effects of competition;

● the effects of changes in laws, regulations, taxation or accounting standards or practices;

● acquisitions, divestitures and various business opportunities that we may pursue;

● changes or volatility in inflation, interest rates and foreign exchange rates;

● accidents, natural disasters or outbreaks of infectious diseases, such as avian influenza, in our markets;

● labor unrest or other similar situations; and

● the outcome of pending or threatened litigation.

We can give no assurance that our expectations will be attained.

DISCLAIMER