CONSOLIDATED STATEMENT OF CASH FLOWS ANALYSIS Liquidity and Funding Sources

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IV. CONSOLIDATED STATEMENT OF CASH FLOWS ANALYSIS Liquidity and Funding Sources

As of December 31, 2016, the Company had cash and cash equivalents amounting to Rp30,449,572,479 and unutilized facilities amounting to Rp200,915,008,122. Over the past three years, the Company’s main sources of liquidity were cash flow from operating activities and financing activities through debt. The use of the Company’s main funds is to finance working capital and capital expenditure in connection with capacity expansion and business development. The Company regularly evaluates its capital requirements relating to cash flows from operations, the Company’s expansion plans and market conditions. If the Company does not generate sufficient cash flow from operations, the Company still has other funding sources such as debt or equity financing. The Company’s subsidiaries are not restricted from transferring funds to the Company. As such, they are able to provide loans to the Company when required in accordance with Companies Law. The following table sets forth the information on the Company’s cash flows for the years ended on December 31, 2014, 2015 and 2016: In Rupiah Description December 31 2014 2015 2016 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 956,773,576,810 1,158,171,383,790 1,238,094,707,735 Cash payments to suppliers, directors, employees, and other operational expenses 886,162,863,406 1,076,278,614,083 1,312,603,447,919 Net cash flows provided by used in operating activities 70,610,713,404 81,892,769,707 74,508,740,184 Financial income 222,261,844 749,969,374 893,970,605 Financial expense 62,629,047,360 82,331,104,454 108,082,005,895 Payment of taxes 8,291,031,939 9,877,880,616 22,814,825,939 Receipt from taxes 1,030,186,236 1,405,185,446 416,312,095 Others – net 7,168,537,414 8,132,624,499 10,377,755,877 Net cash flows provided by used in operating activities 8,111,619,599 28,436,044 193,717,533,441 CASH FLOWS FOR INVESTING ACTIVITIES Payment of advances for purchase of fixed assets 37,561,924,441 25,755,962,630 57,108,698,965 Acquisition of investment properties - 5,334,000,000 - Acquisition of fixed assets 102,242,573,593 202,720,270,784 87,507,070,769 Acquisition of other assets 2,582,803,591 3,886,429,256 3,498,403,976 Proceeds from disposal of fixed assets 29,341,546,559 30,501,435,185 10,462,930,601 Net cash flows used in investing activities 113,045,755,066 207,195,227,485 137,651,243,109 CASH FLOWS FROM FINANCING ACTIVITIES Payment of bank and non-bank financial institution loans 879,788,730,499 1,146,954,528,710 2,011,273,248,985 Additional of bank and non-bank financial institution loans 867,031,483,997 1,473,867,038,596 2,047,335,308,620 Payment of obligation under finance lease 16,774,083,449 18,394,852,126 11,624,734,676 Additional of obligation under finance lease - - 3,169,896,192 Addition payment of other payables 38,857,394,607 32,379,626,929 58,713,981,254 Additional paid-in capital 95,000,000,000 - 90,500,000,000 Additional divestment paid-in capital from non- controlling interest 9,054,500,000 20,112,000,000 16,692,046,113 Net cash flows provided by financing activities 113,380,564,656 296,250,030,831 160,129,156,292 Net increase decrease in cash and cash 8,446,429,189 89,026,367,302 171,239,620,258 43 In Rupiah Description December 31 2014 2015 2016 equivalents and overdraft Net effect of exchange rates changes on cash and cash equivalents 1,027,158,027 1,763,848,000 2,232,977,883 Exchange difference due to translation of financial statements 3,241,778,034 7,570,997,031 - Cash and cash equivalents and overdraft at beginning of the year 13,083,884,977 17,261,378,105 100,480,596,376 Cash and cash equivalents and overdraft at end of the year 17,261,378,105 100,480,596,376 68,526,045,999 Net Cash Flows Provided by Used in Operating Activities Net cash flows used in operating activities for the year ended on December 31, 2016 amounted to Rp193,717,533,441. Cash flows provided by operating activities were generated from cash receipts from customers amounting to Rp1,238,094,707,735, finance income amounting to Rp893,970,605, tax refunds amounting to Rp416,312,095, and others amounting to Rp10,377,755,877. Cash flows used in operating activities were used for, among others, cash payments to suppliers, Directors and employees. Other operating expenses amounting to Rp1,312,603,447,919, finance cost amounting to Rp108,082,005,895, and tax payments amounting to Rp22,814,825,939. Net cash flows used in operating activities for the year ended on December 31, 2015 amounted to Rp28,436,044. Cash flows from operating activities were generated from cash receipts from customers amounted to Rp1,158,171,383,790, finance income amounted to Rp749,969,374, tax refunds amounted to Rp1,405,185,446, and others amounted to Rp8,132,624,499. Cash flows used in operating activities were used for, among others, cash payments to suppliers, Directors and employees, and other operating expenses amounted to Rp1,076,278,614,083, finance cost amounted to Rp82,331,104,454, and tax payments amounted to Rp9,877,880,616. Net cash flows used in operating activities for the year ended on December 31, 2014 amounted to Rp8,111,619,599. Cash flows from operating activities were generated from cash receipts from customers amounting to Rp956,773,576,810, finance income amounting to Rp222,261,844, tax refunds amounting to Rp1,030,186,236, and others amounting to Rp7,168,537,414. Cash flows used in operating activities were used for, among others, cash payments to suppliers, Directors and employees. and other operating expenses amounting to Rp886,162,863,406, finance cost amounting to Rp62,629,047,360, and tax payments amounting to Rp8,291,031,939. Net cash used in investing activities Net cash flows used in investing activities for the year ended on December 31, 2016 amounted to Rp137,651,243,109. Cash flows from investing activities were generated from disposal of fixed assets amounting to Rp10,462,930,601. Cash flows used in investing activities were used for acquisition of fixed assets, amounting to Rp87,507,070,769, acquisition of other assets amounting to Rp3,498,403,976, and payment of advances to purchase fixed assets amounting to Rp57,108,698,965. Net cash flows used in investing activities for the year ended on December 31, 2015 amounting to Rp207,195,227,485. Cash flows provided by investing activities were generated from disposal of fixed assets, amounting to Rp30,501,435,185. Cash flows used in investing activities were used for acquisition of fixed assets amounting to Rp202,720,270,784, acquisition of other assets amounting to Rp3,886,429,256, acquisition of investment properties amounting to Rp5,334,000,000 and payment of advances to purchase fixed assets amounting to Rp25,755,962,630. 44 Net cash flows used in investing activities for the year ended on December 31, 2014 amounted to Rp113,045,755,066. Cash flows provided by investing activities were generated from disposal of fixed assets amounting to Rp29,341,546,599. Cash flows used in investing activities were used for acquisition of fixed assets amounting to Rp102,242,573,593, acquisition of other assets amounting to Rp2,582,803,591, and payment of advances to purchase fixed assets amounting to Rp37,561,924,441. Net cash provided by financing activities Net cash flows from financing activities for the year ended on December 31, 2016 amounting to Rp160,129,156,292. Cash flows from financing activities were generated from addition of bank loans and non-bank financial institution loans amounting to Rp2,047,335,308,620 and additional paid-in capital amounting to Rp90,500,000,000, addition of lease payables of Rp3,169,896,192, and addition of other payables amounting to Rp58,713,981,254. Cash flows used in financing activities consisted of payment of bank loans and non-bank financial institution loans amounting to Rp2,011,273,248,985, payment of lease payables amounting to Rp11,624,7334,676, and divestment by non-controlling interest amounting to Rp16,692,046,113. Net cash flows from financing activities for the year ended on December 31, 2015 amounted to Rp296,250,030,831. Cash flows provided by financing activities were generated from payment of bank loans and non-bank financial institution loans amounting to Rp1,473,867,038,596, additional paid-in capital from non-controlling interest amounting to Rp20,112,000,000. Cash flows used in financing activities consisted of payment of bank loans and non-bank financial institution loans amounting to Rp1,146,954,528,710, payment of lease payables amounting to Rp18,394,852,126, and payment of other payables amounting to Rp32,379,629,929. Net cash flows from financing activities for the year ended on December 31, 2014 amounted to Rp113,380,564,656. Cash flows provided by financing activities were generated from payment of bank loans and non-bank financial institution loans amounting to Rp867,031,483,997, addition of other payables amounting to Rp38,857,394,607, additional paid-in capital amounting to Rp95,000,000,000, and additional paid-in capital from non-controlling interest amounting to Rp9,054,500,000. Cash flows used in financing activities consisted of payment of bank loans and non-bank financial institution loans amounting to Rp879,788,730,499, and payment of lease payables amounting to Rp16,774,083,449.

V. CAPITAL EXPENDITURES