Shifting Coal Consumption from High- Medium CV to Low CV by 2011 Environmental Management System: 76 142 56

25 25 Generate revenue  Emissions reduction programs  Carbon credits trading Environment al Management Reduce operating expense  Energy efficiency programs  Technology-driven cost savings Promote company image  Domestic capacity expansion  Investment communities

1. Alternative Fuel

The use of al t ernat ive f uel is t he company’ st rat egy pl an in order t o improve non renewabl e energy ef f iciency as wel l as consume f riendl y environment al energy.

2. Waste Heat Recovery Power Generator

Ut il ize exhaust wast e gas f rom pre-heat er cool er t o produce el ect ricit y power pl ant .

3. Shifting Coal Consumption from High- Medium CV to Low CV by 2011

4. Environmental Management System:

• Environment Monit oring Program • Environment Management Program • Resources Conservat ion Program • Communit y Devel opment Program • Environment Monit oring Program • Environment Management Program • Resources Conservat ion Program • Communit y Devel opment Program 26 FUTURE OF INDONESIA’ S CEMENT INDUSTRY SMGR Corporat e Present at ion May 2011 27 27  Pessimist : 5. 5  Moderate : 6. 5  Optimist : 7. 0 Annual Growth Rates NATIONAL DEMAND IS FORECAST TO RISE TO 142mm TONS BY 2030 Indonesia Cement Market Growth 2010-2030 43 46 49 52 56 59 63 67 72 81 86 92 98 104 111 118 125 133 117 40 76 142 163 20 40 60 80 100 120 140 160 180 2010 2015 2020 2025 2030 Pessimist Moderate Optimist Indonesia’s demand growt h will make it t he largest cement producer in Sout heast Asia Sour ce: Int er nal Resear ch

2020: 76

mio t ons

2030: 142

mio t ons 2030: 142 mio t ons

2015: 56

mio t ons SMGR • Design Cap : 29. 8 mio t ons • Product ion P : 28. 5 mio t ons • Domest ic market : 25. 0 mio t ons • Export market : 3. 5 mio t ons 28 28 DEMAND IN 2010-2030 WILL INCREASINGLY SHIFT TO THE OUTER ISLANDS SMGR wit h it s wide geographical presence is well posit ioned t o t ap t he growt h t hroughout Indonesia Malaysia Timor Leste Malaysia Malaysia Timor Leste Timor Leste Timor Leste 22 50 10 39 3 20 3 16 1 6 2 11 Kalimantan 17 MT 618 Sulawesi 13 MT 406 Bali 9 MT 403 Java 28 MT 130 Sumatera 29 MT 310 East of Indonesia 5 MT 625 2010 2030 Key Figures are in MT 2020 20 8 7 2 5 34 Source: Int ernal Research 29 29 Tr anspor tati on 2,458 Rai l ways 11,960 Tol l r oads 15,248 Po wer 3,695 W ater resour ces 779 Proj ect Value by Sector US million 2010-2014 Toll Road Proj ect Status No. of proj ects Proj ect value USD mio Length Km Cement demand MT Proj ect s Ready For Offer 3

1, 000 135