Presentasi Korporasi | Semen Indonesia

(1)

Leading Towards the Future

March 2008

(2)

AGENDA

I. Indonesia Cement Highlights

II. Corporat e Pr of il e

III. Financial Perf ormance

IV. St rat egi c Ini t iat ives

V. Appendix

(3)

• Total Installed National Cap.:

45.07 mn tons/year (EoY 07)

• Domestic utilization rate per

Dec. 2007: 75.83%

Singapore Kual a Lumpur

SGG

*)

1

2

3

4

5

6

7

8

9 Semen Andalas Indonesia

Lhok Nga, Nanggroe Aceh D.

Cap. 1.4 mn tons (under plant reconstruction)

Indocement Tunggal Perkasa

Jakarta

Cap. 15.65 mn tons

Semen Tonasa

Pangkep, South Sulawesi

Cap. 3.5 mn tons

Semen Padang

Indarung, West Sumatera

Cap. 5.4 mn tons

Holcim Indonesia

Jakarta

Cap. 8.7 mn tons

Semen Bosowa Maros

Maros, South Sulawesi

Cap. 1.8 mn tons

Semen Baturaja

Palembang, South Sumatera

Cap. 1.25 mn tons

Semen Gresik

Gresik/Tuban, East Java

Cap. 8.2 mn tons

Semen Kupang

Kupang, East Nusa Tenggara

Cap. 0.57 mn tons

1.

2.

3.

4.

5.

6.

7.

8.

9. INDUSTRY STRUCTURE AND PLANTS LOCATION

_{Semen Gresik}

Group

_{Semen Gresik}

(4)

AGENDA

I. Indonesia Cement Highl ight s

II. Corporat e Profile

III. Financial Perf ormance

IV. St rat egi c Ini t iat ives

V. Appendix

(5)

SGG IS THE #1 CEMENT COMPANY IN INDONESIA

1999

2005

2007

2006

1998

1995

1991

1957



Founded August 1957 by the first

President of the Republic of Indonesia



Capacit y: 250, 000 t ons per annum (“ t pa” )



July 1991, Initial Public

Offering—listed on the

Jakarta Stock Exchange and

Surabaya Stock Exchange



Government of Republ ic of

Indonesia: 73%, Publ ic: 27%



Capacit y: 1. 8mn t pa



EoY market cap:

Rp 0. 63tn



Cemex S. A. de C. V. ("Cemex")

became a strategic partner by

buying a 14% stake



GoI: 51%, Publ ic: 35%, Cemex:

14%



Capacit y: 17. 3mn t pa



EoY market cap:

Rp 4. 9tn



September 1999, Cemex upsized its

stake to 26%



GoI: 51%, Publ ic: 23%, Cemex: 26%



Capacit y: 17. 3mn t pa



EoY market cap:

Rp 6. 6tn



GoI: 51%, Public: 23%,

Cemex: 26 %



Capacit y: 16. 9mn t pa



EoY market cap:

Rp 10. 6tn



July 2006, Blue Valley

Holdings PTE Ltd. (“ Blue

Valley” ) bought Cemex’ s

24. 9% stake in SGG



GoI: 51%, Publ ic: 24%, Bl ue

Val l ey: 25%



Capacit y: 16. 9mn t pa



EoY market cap:

Rp 21. 5tn



GoI: 51%, Public: 24%,

Blue Valley: 25%



Capacit y: 17. 1mn t pa



EoY market cap:

Rp 33. 2tn



Rights Issue



Acquisition of Semen Padang and

Semen Tonasa



GoI: 65%, Publ ic: 35%



Capacit y: 8. 5mn t pa

(6)



Distribution warehouses in all areas of Java, Bali, Sumatra, Kalimantan, Sulawesi and Irian



15 large packing plants



Nationwide distribution network



Operate 4 special sea ports: Padang, Tuban, Gresik, Biringkassi



Total installed cap. EoY 2007: 17.1 mn tons

SGG’ s PRODUCTION FACILITIES ARE WELL SUPPORTED BY STRATEGICALLY

LOCATED MARKETING AND DISTRIBUTION FACILITIES

Teluk Bayur Sumat era Kalimant an Sulawesi Maluku Papua Lombok Bali Java Bat am Ciwandan

Tanj ung Pr iok _{Jakart a}

Samar inda

Banj ar masin

Palu Bit ung Ambon Makassar Bir ingkasi Bali Tabanan Denpasar Singar aj an

DI Yogyakart a

Lempuyangan Jant i

Cent ral Java

Tegal Pur woker t o

Kudus Magelang Solo/ Palur Alas Tuwo Moj opahit Sayung

West Java

Ser ang Tanger ang Bogor Cibit ung Bandung Tasik Malaya Cir ebon Nar ogong Belawan Singapore Kual a Lumpur

Tuban

Surabaya

Cement Pl ant Packi ng Pl ant Port

Warehouse

East Java

Mar gomulyo Tanj ung Wangi

Bangkalan Swabina Aleh

Pelabuhan Tuban

Pelabuhan Gr esik

Installed Cap.:

5.4 mn tons

Installed Cap.:

8.2 mn tons

Installed Cap.:

3.5 mn tons

(7)

Ot hers

8. 1%

Player 2

19. 3%

Player 1

34. 7%

Semen

Gresi k

18. 2%

Semen

Padang

11. 9%

Semen

Tonasa

7. 8%

CAPACITY SHARE — 2007

Semen

Tonasa

8. 6%

Ot hers

10. 2%

Semen

Padang

14. 2%

Semen

Gresi k

21. 6%

Player 1

30. 9%

Player 2

14. 6%

Total = 45. 07 mn tons

SGG

Tot al 37. 9%

SGG

Tot al 44. 4%

MARKET LEADER IN TERMS OF REVENUE AND CAPACITY SHARE

Highest revenue/ available capacit y among peers

Leading market share for t he past several years

Total = 34. 2 mn tons

DOMESTIC MARKET SHARE — 2007

(8)

SEMEN GRESIK’ S STOCK PRICE HAS CONTINUED TO PERFORM

Vol ume (per 10, 000)

Price (Rp/ share)

JCI (Jakart a Composi t e Index) i s r ebased t o Semen Gresi k shar e pri ce

Not e: US$1= IDR 9, 393 as per Dec. 28, 2007; Semen Gr esi k pri ces adj ust ed t o st ock spl i t

Key market data IDR USD

Current share price 5, 600 0. 60 52 week high 6, 200 0. 66 52 week low 3, 500 0. 37 Market cap (EoY 07) 33, 217bn 3, 536mm

St ock Spl it

US Subprime

crisis

US Subprime

crisis

1, 000

2, 000

3, 000

4, 000

5, 000

6, 000

7, 000

Jan-07

Feb-07

Mar-07

May-07

Jun-07

Jul-07

Sep-07

Oct -07

Dec-07

Jan-08

0

500 1, 000

1, 500

2, 000

2, 500

3, 000

3, 500

SMGR

JCI

Feb-08 Feb-08

(9)

AGENDA

I. Indonesia Cement Highl ight s

II. Corporat e Pr of il e

III. Financial Performance

IV. St rat egi c Ini t iat ives

(10)

FINANCIAL HIGHLIGHTS

19%

7%

47%

20%

27%

21%

15%

CAGR

6,627

8,515

1,775

2,855

2,397

4,001

9,601

2007

5,500

7,496

1,296

2,234

1,779

3,328

8,728

2006

20.5 6,627

5,500

4,467

3,642

3,334

Total Equity

13.6 8,515

7,496

7,298

6,666

6,559

Total assets

37.0 1,775

1,296

1,002

509

373 Net profit

27.8 2,855

2,234

1,999

1,412

1,386

EBITDA

34.7 2,397

1,779

1,539

965

929 Operating profit

20.2 4,001

3,328

2,892

2,061

1,893

Gross Profit

10.0 9,601

8,728

7,532

6,068

5,450

Revenue

Change

(%)

2007

2006

2005

2004

2003

(Rp billions)

(11)

OVER THE YEARS, SGG HAS EXPERIENCED ROBUST EARNINGS GROWTH …

5,172

5,450

6,068

7,532

8,728

9,601

2002

2003

2004

2005

2006

2007

• Net Revenues

(Bn Rp)

2,397

1,779

1,539

980

929

749 2002

2003

2004

2005

2006

2007

• Operating Income

(Bn Rp)

2,855

2,234

1,999

1,412

1,386

1,186

2002

2003

2004

2005

2006

2007

• EBITDA

(Bn Rp)

1,775

1,296

1,002

509

373

151 2002

2003

2004

2005

2006

2007

• Net Income

(Bn Rp)

26.79

23.56

22.43

13.97

11.17

4.86 2002

2003

2004

2005

2006

2007

• Return on Equity

(%)

27.09

34.80

61.80

81.30

95.00

117.20 2002

2003

2004

2005

2006

2007

(12)

…. RESULTING IN RISING PROFITS AND IMPROVING MARGINS

2 , 8 9 2

3 , 3 2 8

1 , 9 9 9

1 , 8 9 3

2 , 0 6 1

4 , 0 0 1

2 , 8 5 5

2 , 2 3 4

1 , 4 1 2

1 , 3 8 6

3 7 3

5 0 9

1 , 2 9 6

1 , 7 7 5

1 , 0 0 2

-2 5 0

5 0 0

1 , 2 5 0

2 , 0 0 0

2 , 7 5 0

3 , 5 0 0

4 , 2 5 0

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

Gross pr ofit

EBITDA

Net income

PROFITABILITY TREND (Rp Bn)

CAGR

(03-07)

20%

21%

47%

PROFIT MARGINS—LAST 5 YEARS

4 1 . 7%

3 8. 1 %

3 8. 4 %

3 4. 0%

34 . 7 %

2 5. 1 %

23 . 0 %

26 . 3 %

2 5. 5%

_{2 9. 7 %}

1 3. 3%

1 4. 8 %

18 . 5 %

8 . 4 %

6 . 8 %

0. 0%

5. 0%

1 0. 0%

1 5. 0%

2 0. 0%

2 5. 0%

3 0. 0%

3 5. 0%

4 0. 0%

4 5. 0%

2 00 3

2 00 4

2 00 5

20 06

20 07

(13)

Sour ce: I/ B/ E/ S mean est i m at es

Not e: Act ual numbers ar e report ed number on t he year of announcement

SUSTAINABLE EPS GROWTH VS. ANALYST ESTIMATES

SGG HAS BEEN ABLE TO OUTPERFORM MARKET EXPECTATIONS

ACT

UAL

EP

S C

AGR

(20

02-

200 6) 4

8%

590

514

743 1, 206

2, 147

255

628

858 1,689

2, 184

0

500 1,000

1,500

2,000

2,500

2002

2003

2004

2005

2006

Consensus analyst EPS fore cast s

Act ual EPS

(14)

AGENDA

I. Indonesian Cement Highl ight s

II. Corporat e Pr of il e

III. Financial Perf ormance

IV. Strategic Initiatives

V. Appendix

(15)

SGG 5-YEAR CORPORATE STRATEGY

Product

Pr oduct development



Pr oduct Di ver si f i cat i on

Capacit y & Energy Management



Debot t lenecking / Opt imiz at ion



New Plant



Pow er Plant

New Plant

Power Plant Debot t lenecking /

Opt imizat ion

Organizat ion Capit al



Corpor at e rest ruct ur ing



Subsidiaries & Af filiat es r est ruct uring

Effect ive holding

Inf ormat ion Capit al



Inf or mat i on & Communi cat i on Technol ogy



Syst em Management

Indust ry landscape scenario

Brand equit y st rengt he ning



Cust omer value pr oposit ion



Compet it ive advant age

20 06 2 00 7 20 0 8 2 0 09 20 1 0 Onw ards

Consolidat ing leadership posit ion



Eff iciency



Synergy

Human Capit al



Human Resour ce Compet enci es

2 0 11

Int ense

compet it ion

(Pot ent ial) New ent rant s

2 01 2

Br and

Init iat ives

Opt imiz at ion

per iod

(16)

Revenue management

Cost management

Capacity management

Increasing

competitive advantage



Maint ain market



Increase

operat ing margin



Market share opt imizat ion



Margin opt imizat ion



Raw mat erial



Maint enance cost s



Yiel d

improvement



Energy suppl y

al t ernat ives



Raw mat erial



Maint enance

cost s



Yiel d/ ut il izat ion



Maximize

ut il izat ion



Capacit y opt imizat ion



Capacit y expansion



Corporat e rest ruct uring



Human resource compet encies



Management Inf or mat ion Syst ems (MIS)

Profitability

And

Sustainable

growt h

ACTIVITY

_{NEAR TERM INITIATIVES}

NEAR TERM INITIATIVES

_{LONG TERM INITIATIVES}

LONG TERM INITIATIVES

_{ULTIMATE OBJECTIVE}

ULTIMATE OBJECTIVE

(17)

CURRENT PRODUCT MOVEMENT



CROSS-BAGGING INITIATIVE

CURRENT PRODUCT MOVEMENT



CROSS-BAGGING INITIATIVE

The cross bagging init iat ive wil l resul t in a dif f erent movement of product t o

t he market wit hout changing t he f inal brand l eading t o



Lesser t ime t o market



Logist ics cost savi ngs

Cost savings i n t ransport at ion, packaging, invent ory and raw mat erial

procurement t hrough increased coordinat ion among t he various uni t s;

pot ent ial t o reduce t ransport at ion cost s

1 COORDINATED GROUP NEGOTIATIONS

2 In t he past t arget market s

were served predominant l y by

one of t hree compani es–but

overl ap market s exist in Java,

Bal i and Kal imant an l eading

t o high t r ansport at i on cost s in

t hose areas

(18)

16.9 16. 9

16.9 1. 5

16.9 17. 1

17.7 0. 8

0.2

18.4

15.0

16.0

17.0

18.0

19.0 2006

2007

2008

2009

Inst alled base capacit y

Increment al capacit y f rom de-bot t lenecking/ opt imizat ion plans

4

3 

t o set up capt ive power suppl y



Rat ional e f or cont rol l ing of power vs. cur rent suppl y



The Company needs rel iabl e and cost ef f ect ive energy/

power suppl y



Expect ed t o l ead t o l ower operat ing cost s and minimize

l oss of product ion capacit y



Capt ive power suppl y are est imat ed t o provide

signif icant cost savings

CAPACITY ESTIMATES (MILLION TONS)

SET UP POWER SUPPLY TO CONTROL ENERGY COSTS

(19)

17. 1

17. 7

18. 4

1.8

4. 0 4. 8 5.0

2007

2008

2009

2010

2011

2012

2013

2014

DOMESTIC CAPACITY BUILD-OUT (MILLION TONS)

Base capaci t y New capaci t y



Current capacit y of SGG is in l ine wi t h our t arget t o

maint ain l eading market shar e posit ion



To st rengt hen t his posi t ion we are const r uct ing new

cement pl ant s (2 x 2. 5 mi o t ons of cement ) t o expand

capaci t y t o meet domest ic and export demand



Pl ant s are t arget ed t o come onl ine st ar t ing 2011



Addit ional capacit y wil l hel p diversif y market base, bot h

domest ic and export market

17. 1 17. 7

18. 4 18. 4

20. 2

22. 4 23. 2

GREENFIELD/ BROWNFIELD PROJECTS

DOMESTIC CAPACITY EXPANSION

(20)

SUMARY OF SMGR’ s PROJECTS IN 5-YEAR DOWN THE ROADS

1. 40

1, 790

573

410 Sub Tot al

1. 37

30: 70

300 2011

2008

96 2 x 35

New Pl ant - Sul awesi

1. 57

30: 70

300 2011

2008

110 2 x 35

New Pl ant – Java

1. 43

30: 70

150 2011

2008

50 1 x 35

Pangkep

1. 39

30: 70

490 2011

2008

146 3 x 35

Indarung

1. 32

30: 70

550 2011

2008

171 2 x 65

Tuban

Int ernal : Ext .

Complet ed

St art

Investment

US$ mn/ MW

Funding

Coal Requirement

(‘ 000 tons)

Construction

Investment

(US$ mn)

Capacity

(MW)

Power Plants

Location

134

670 5. 0

Sub Tot al

126 30 : 70

2011

2008

315 2. 5

Sul awesi

142 30 : 70

2012

2008

355 2. 5

Java

Int ernal : Ext .

Complet ed

St art

Investment

US$/ Tons

Funding

Construction

Investment

(US$ mn)

Capacity

(mn tons)

New Plants

Location

(21)

AGENDA

I. Indonesian Cement Highl ight s

II. Corporat e Pr of il e

III. Financial Perf ormance

IV. St rat egi c Ini t iat ives

V. Appendix

(22)

3 0. 7

30. 7

33 . 2

3 3. 9

3 3. 0

35 . 1

27. 2

27 . 5

30. 2

31. 5

32 . 1

3 4. 2

5 . 6 %

4. 7%

5. 1%

5 . 4 %

4 . 4 %

6 . 3%

-5. 0

5. 0

15. 0

25. 0

35. 0

45. 0

55. 0

65. 0

200 2

20 03

200 4

200 5

20 06

FY 2 007 (E)

0. 0%

1. 0%

2. 0%

3. 0%

4. 0%

5. 0%

6. 0%

7. 0%

Source: Indonesi an Cem ent Associ at i on, *) Court esy of Bahana Resear ch Inst i t ut e (P)

Cement Product ion

Domest ic consumpt ion

GDP growt h %

(mio t ons)

Growth:

5.8%

Growth:

1.1%

Growth:

9.7%

Growth:

4.2%

Growth:

1.8%

_Growth:

6.6%

INDONESIA HAS EXPERIENCED SOLID ECONOMIC AND DOMESTIC CEMENT

CONSUMPTION GROWTH

GDP GROWTH AND CEMENT PRODUCTION & DOMESTIC CONSUMPTION IN INDONESIA

(23)



SGG has highest overal l capacit y



The ut il izat ion rat es are t he best in

t he l ocal indust ry



Wide geogr aphical cover age t hrough

dispersed f act ories

COMPARISON WITH PEERS (Cement Product ion – 2007)

Semen Gresik (SG)

Semen Padang (SP)

Semen Tonasa (ST)

Company name Locat ion Capacit y (mm t on) Ut ilizat ion*)_(%)

Semen Gresik

Gresik & Tuban, East Java

8. 2

Semen Padang

Indarung, West Sumat era

5. 4

Semen Tonasa

Pangkep, Sout h Sulawesi

3. 5

SGG – Tot al Capacit y

_{Padang, Gresik/ Tuban, Pangkep}

17. 1

89%

Player 1

Cit eureup (W-Java) , Tarj un (Sout h Kalimant an) 15. 65

Player 2

Narogong, Cilacap, Cent ral Java

8. 70

Ot hers

NA

3. 62

Industry

45. 0 7

76%

MARKET DINAMICS

KEY HIGHLIGHTS

*)_{Domest i c Ut i l i zat i on}

67%

57%

96%

90%

84%

(24)

SGG’ s BRANDS LEAD INDONESIA’ s TOP MARKETS

Sour ce: Indonesi a Cem ent Associ at i on



SGG ’ s brands are wel l-recognized t hroughout Indonesia



Dominant market posit ion in Indonesia’ s t op t hree market s which comprise 88% of t ot al

domest ic consumpt ion



St rong brand l oyalt y al l ows Semen Gresik t o dominat e East Java wit h 73% market share

Market share by maj or market FY2007

Sumatera

Sulawesi

Java

Sulawesi t ot al: 2. 07mn t ons

Indocement

12. 7%

Semen Bosowa

19. 4%

SGG 67. 9%

SGG 49. 1%

Semen Andalas

17. 4%

Indocement

15. 3%

Ot her 18. 2%

SGG 37. 3%

Holcim 22%

Indocement

39. 3%

Ot her 1. 4%

Java t ot al: 19. 66mn t ons

Sumatera t ot al:

8. 04mn tons

Kalimant an tot al: 1. 98mn tons

Indocem ent

28. 6%

Semen Bosow a 4. 1%

SGG 61%

(25)

SGG HAS STRONGER CREDIT METRICS VS. ITS PEERS

0.1x

0. 5x

1 . 1x

0 . 2 x

2. 0x

1. 3x

20 02

2 00 3

20 04

20 0 5

20 06

2 00 7

DEBT/ EBITDA

DEBT/ EQUITY

0. 5 x

0 . 7x

0 . 1x

0. 4 x

0 . 2x

0.0x

2 00 2

20 03

2 00 4

2 00 5

20 06

2 00 7

Sour ce: Company f i nanci al s, based on book val ues of debt and equi t y Regi onal peers i ncl ude Anhui Conch, CNBM, Ambuj a Cement s, ACC, Gr asi m,

Indocem ent , Hol ci m Indonesi a, Si am Cement , Si am Ci t y Cement , Tai w an Cem ent , Asi a Cement Corp, Laf arge Mal ayan

Regional peer median (2006): 1. 9x

Regional peer median (2006): 0. 7x

0.00

1.00

2.00

3.00

4.00

5.00

6.00 T

im

e

s

0 5,000

10,000

15,000

20,000

25,000

30,000

35,000

R

p

B

il

li

o

n

Equity

3,111

3,333

3,642

4,467

5,500

6,585

Market Cap

4,834

4,656

10,973

10,558

21,531

33,217

Ratio

1.60

1.40

3.00

2.40

3.90

5.00 2002

2003

2004

2005

2006

2007

PRICE TO BOOK VALUE (2002 – 2007)

6%

2 0%

4%

3 5%

29 %

2 00 3

20 04

20 05

2 00 6

20 07

DEBT/ CAPITAL

(26)

Main Office:

Main Building of Semen Gresik

Jln. Veteran Gresik 61122 – Indonesia

Phone: (62-31) 3981731 -2, 3981745

Fax: (62-31) 3983209, 3972264

Representative Office:

Graha Irama Building, 11

_Floor,

Jln. HR Rasuna Said, Kuningan, Jakarta 12950 – Indonesia

Phone : (62-21) 5261174 – 5

Fax

: (62-21) 5261176

www.semengresik.com

T h a n k y o u

DISCLAIMER

The information contained in this report has been taken from sources which we deem reliable. However, none of PT Semen Gresik (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 Gresik (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 Gresik (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 mission there from which might otherwise arise is hereby expresses disclaimed.

The information contained in this report is not be taken as any recommendation made by PT Semen Gresik (Persero) Tbk or any other person to enter into any agreement with regard to any investment mentioned in this document. This report is prepared for general circulation. It does not have regard to the specific person who may receive this report. In considering

(1)

AGENDA

I. Indonesian Cement Highl ight s

II. Corporat e Pr of il e

III. Financial Perf ormance

IV. St rat egi c Ini t iat ives

V. Appendix

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3 0. 7

30. 7

33 . 2

3 3. 9

3 3. 0

35 . 1

27. 2

27 . 5

30. 2

31. 5

32 . 1

3 4. 2

5 . 6 %

4. 7%

5. 1%

5 . 4 %

4 . 4 %

6 . 3%

-5. 0

5. 0

15. 0

25. 0

35. 0

45. 0

55. 0

65. 0

200 2

20 03

200 4

200 5

20 06

FY 2 007 (E)

0. 0%

1. 0%

2. 0%

3. 0%

4. 0%

5. 0%

6. 0%

7. 0%

Source: Indonesi an Cem ent Associ at i on, *) Court esy of Bahana Resear ch Inst i t ut e (P)

Cement Product ion

Domest ic consumpt ion

GDP growt h %

(mio t ons)

Growth:

5.8%

Growth:

1.1%

Growth:

9.7%

Growth:

4.2%

Growth:

1.8%

_Growth:

6.6%

INDONESIA HAS EXPERIENCED SOLID ECONOMIC AND DOMESTIC CEMENT

CONSUMPTION GROWTH

GDP GROWTH AND CEMENT PRODUCTION & DOMESTIC CONSUMPTION IN INDONESIA

(3)



SGG has highest overal l capacit y



The ut il izat ion rat es are t he best in

t he l ocal indust ry



Wide geogr aphical cover age t hrough

dispersed f act ories

COMPARISON WITH PEERS (Cement Product ion – 2007)

Semen Gresik (SG)

Semen Padang (SP)

Semen Tonasa (ST)

Company name Locat ion Capacit y (mm t on) Ut ilizat ion*)_(%)

Semen Gresik

Gresik & Tuban, East Java

8. 2

Semen Padang

Indarung, West Sumat era

5. 4

Semen Tonasa

Pangkep, Sout h Sulawesi

3. 5

SGG – Tot al Capacit y

_{Padang, Gresik/ Tuban, Pangkep}

17. 1

89%

Player 1

Cit eureup (W-Java) , Tarj un (Sout h Kalimant an) 15. 65

Player 2

Narogong, Cilacap, Cent ral Java

8. 70

Ot hers

NA

3. 62

Industry

45. 0 7

76%

MARKET DINAMICS

KEY HIGHLIGHTS

*)_{Domest i c Ut i l i zat i on}

67%

57%

96%

90%

84%

(4)

SGG’ s BRANDS LEAD INDONESIA’ s TOP MARKETS

Sour ce: Indonesi a Cem ent Associ at i on



SGG ’ s brands are wel l-recognized t hroughout Indonesia



Dominant market posit ion in Indonesia’ s t op t hree market s which comprise 88% of t ot al

domest ic consumpt ion



St rong brand l oyalt y al l ows Semen Gresik t o dominat e East Java wit h 73% market share

Market share by maj or market FY2007

Sumatera

Sulawesi

Java

Sulawesi t ot al: 2. 07mn t ons

Indocement

12. 7%

Semen Bosowa

19. 4%

SGG 67. 9%

SGG 49. 1%

Semen Andalas

17. 4%

Indocement

15. 3%

Ot her 18. 2%

SGG 37. 3%

Holcim 22%

Indocement

39. 3%

Ot her 1. 4%

Java t ot al: 19. 66mn t ons

Sumatera t ot al:

8. 04mn tons

Kalimant an tot al: 1. 98mn tons

Indocem ent

28. 6%

Semen Bosow a 4. 1%

SGG 61%

(5)

SGG HAS STRONGER CREDIT METRICS VS. ITS PEERS

0.1x

0. 5x

1 . 1x

0 . 2 x

2. 0x

1. 3x

20 02

2 00 3

20 04

20 0 5

20 06

2 00 7

DEBT/ EBITDA

DEBT/ EQUITY

0. 5 x

0 . 7x

0 . 1x

0. 4 x

0 . 2x

0.0x

2 00 2

20 03

2 00 4

2 00 5

20 06

2 00 7

Sour ce: Company f i nanci al s, based on book val ues of debt and equi t y Regi onal peers i ncl ude Anhui Conch, CNBM, Ambuj a Cement s, ACC, Gr asi m,

Indocem ent , Hol ci m Indonesi a, Si am Cement , Si am Ci t y Cement , Tai w an Cem ent , Asi a Cement Corp, Laf arge Mal ayan

Regional peer median (2006): 1. 9x

Regional peer median (2006): 0. 7x

0.00

1.00

2.00

3.00

4.00

5.00

6.00 T

im

e

s

0 5,000

10,000

15,000

20,000

25,000

30,000

35,000

R

p

B

il

li

o

n

Equity

3,111

3,333

3,642

4,467

5,500

6,585

Market Cap

4,834

4,656

10,973

10,558

21,531

33,217

Ratio

1.60

1.40

3.00

2.40

3.90

5.00 2002

2003

2004

2005

2006

2007

PRICE TO BOOK VALUE (2002 – 2007)

6%

2 0%

4%

3 5%

29 %

2 00 3

20 04

20 05

2 00 6

20 07

DEBT/ CAPITAL

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Main Office:

Main Building of Semen Gresik

Jln. Veteran Gresik 61122 – Indonesia

Phone: (62-31) 3981731 -2, 3981745

Fax: (62-31) 3983209, 3972264

Representative Office:

Graha Irama Building, 11

_Floor,

Jln. HR Rasuna Said, Kuningan, Jakarta 12950 – Indonesia

Phone : (62-21) 5261174 – 5

Fax

: (62-21) 5261176

www.semengresik.com

T h a n k y o u

DISCLAIMER

after the issue thereof.