SMGR Corp Material Presentation_July 2010.

(1)

Corporat e Present at ion

JULY, 2010

(2)

INDONESIA’ S CEMENT INDUSTRY

SMGR Corporat e Present at ion

(3)

1. Semen Padang

5. 9 mn t on

2. Semen Gresik

9. 0 mn t on

3. Semen Tonasa

4. 1 mn t on

4. Semen Andal as

1. 6 mn t on

5. Semen Bat uraj a

1. 3 mn t on

6. Indocement TP

17. 1 mn t on

7. Hol cim Indonesi a

8. 5 mn t on

8. Semen Bosowa

1. 8 mn t on

9. Semen Kupang

0. 5 mn t on

TOTAL

49. 8 mn ton

CEMENT INDUSTRY

2008

2009

2010F

1)

CEMENT INDUSTRY AT A GLANCE

• Production Capacity : 46. 6 mio ton

49. 8 mio ton

51. 7 mio ton

• Domestic Growth

: 11. 5%

2. 5%

6. 5%

• Domestic Ut ilization : 82%

78%

80%

• Supply



Domestic

: 38. 1 mio ton

39. 1 mio ton

41. 6 mio ton



Export

: 4. 9 mio tons

4. 0 mio tons

3. 6 mio ton



Import

_{: 1. 5 mio tons}

_{1. 5 mio tons}

-1) Based on Company’ s f orecast

2) Import ed cement by PT Semen Andal as as it s cement pl ant is current ly under

reconst ruct ion

Singapor e Kuala

Lum pur

SMGR

4

1

5

6

7

2

3

8

9 CEMENT PLAYERS and CAPACITY

SMGR: 19. 0 mio ton

(4)

COMPARISON: CEMENT CONSUMPTION PER CAPITA 2009

Sour ce: Deut she Bank; CEIC; Bahana Resear ch, Indonesi a Cement Associ at i on

0

200

400

600

800 1000

1200

C

hin

_a

S

au

di

_A

ra

bia

S

in

ga

po

re

I ta

_ly

M

ala

ys

_ia

V

ie

tn

am

U

_S

A

Th

_ail

an

_d

Ja

pa

_n

G

er

m

an

_y

I n

dia

I n

do

ne

sia

Ph

ilip

in

_a

kg/ capit a

167 kg

(5)

INDONESIA CEMENT CONSUMPTION PER CAPITA (1997 – 2009)

123

128

141

96 ₉₄

110

125

130 ₁₃₀

140

144

145

152

162

167

0

20

40

60

80

100

120

140

160

180 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

kg/ per capita

Sour ce: Indonesi a Cem ent Associ at i on

(6)

Source: Indonesian Cement Associat ion & BPS St a t ist ic

INDONESIA HAS EXPERIENCED SOLID ECONOMIC AND DOMEST IC CEMENT

CONSUMPT ION GROWT H

Growth

:

1.1%

Growth

:

9.7%

Growth

:

4.2%

Growth

:

1.8%

Growth

:

6.6%

Growth

:

5.8%

Growth

:

19.4%

Domest ic consumpt ion (LHS)

GDP growt h % (RHS)

(mio t ons)

DOMEST IC CEMENT CONSUMPT ION, CEMENT GROWT H, GDP GROWT H AND CONST RUCT ION GROWT H IN

INDONESIA

3 8. 1

3 4 . 2

3 2. 1

31 . 5

30 . 2

2 7 . 5

27 . 2

3 9 . 1

4. 60%

6. 1%

6. 3%

4. 4%

5. 4%

5. 1%

4. 7%

5. 6%

5 . 8%

1. 1 %

1. 8 %

6. 6 %

2 . 5 %

9 . 7 %

4. 2 %

1 1. 5 %

0. 0

1 0. 0

2 0. 0

3 0. 0

4 0. 0

2 00 2

20 0 3

20 04

2 00 5

2 0 06

2 00 7

20 0 8

2 0 09

0 . 0%

1 0. 0 %

2 0. 0 %

Cement growt h (RHS)

(7)

DOMESTIC MARKET CONSUMPTION

Retail (resident ial) sect or is t he largest

consumer of cement in Indonesia

Bag

80%

Bulk

20%

Key Drivers of Domestic cement demand:

• National Economic Growth

• Favorable Interest Rat e Environment

• Infrastructure Expansion

• Per Capita Consumption increase from current low levels

• Ready-mix (inf rast ruct ure):

±

50%

• Fabricat or (pre-cast , f iber cement , cement based indust ry):

±

45%

• Proj ect s (mort ar , render):

±

5%

• Ready-mix (inf rast ruct ure):

±

50%

• Fabricat or (pre-cast , f iber cement , cement based indust ry):

±

45%

• Proj ect s (mort ar , render):

±

5%

• Housing:

±

90%

• Cement based indust ry:

±

10%

• Housing:

±

90%

• Cement based indust ry:

±

10%

±

(8)

COMPANY PROFILE

SMGR Corporat e Present at ion

(9)



1957 : Inaugurat ion of Gresik I, inst al l ed capacit y of 250, 000 t on cement per annum



1991 : Init ial Publ ic Of f ering, Market Cap IDR0. 63t n, resul t ing sharehol ding st ruct ure

post IPO:

● Government of Republ ic of Indonesia: 73%

● Publ ic: 27%



1995 : Acquisit ion of PT Semen Padang (Persero) and PT Semen Tonasa (Persero)



1998 : Cemex became a st rat egic part ner, Market Cap IDR4. 9t n



2006 : Bl ue Val l ey Hol dings bought Cemex’ s 24. 9% st ake in SMGR, Market Cap IDR21. 5t n



2010 : In March 31, Bl ue Val l ey Holdings sold 23. 65% of it s st ake ownership in SMGR,

Market Cap per March 31, 2010 IDR43. 3t n



2010 : Target ed t ot al inst al l ed capacit y of 19. 50mm t ons, Market Cap per May 31, 2010

IDR50. 1t n

Publ ic

(48. 99%)

The Government of t he Republ ic of Indonesia

(51. 01%)

PT Semen Gresik (Persero) Tbk.

PT Semen Padang

(99. 99%)

PT Semen Tonasa

(99. 99%)

Six subsidiaries

Non-cement producers

BRIEF HISTORY

OWNERSHIP STRUCTURE

SMGR IS THE #1 CEMENT COMPANY IN INDONESIA

¹ As of Apri l 09, 2010

0,0

5,0

10,0

15,0

20,0

19

57

19

80

19

80

19

84

19

85

19

86

19

94

19

96

19

97

19

98

20

06

20

07

20

08

20

09 SMGR CAPACITY BUILD-OUT (MM TONS)

Five subsidiaries

Non-cement producers

(10)

TOP 20 SHAREHOLDERS

(per June 30, 2010)

NO

NAME OF INVESTORS

AMOUNT

%

1 GOVERNMENT OF REPUBLIC OF INDONESIA

3, 025, 406,000

51. 01

2 SSB 4545 S/ A LAZARD EMERGING MARKETS EQUITY PORTFOLIO

139, 736, 300

2. 36

3 JPMCB-EUROPACIFIC GROWTH FUND

129, 396, 000

2. 18

4 JPMCB-EMERGING MARKETS GROWTH FUND INC.

113, 763, 500

1. 92

5 JPMCB-NEW WORLD FUND, INC.

89, 607, 500

1. 51

6 JPMCB-CAPITAL INTERNTNL EMERGINGMARKETS FUND

60, 511, 500

1. 02

7 PT JAMSOSTEK (PERSERO) - NON JHT

55, 008, 500

0. 93

8 THE NORTHERN TRUST S/ A AVFC

48, 379, 167

0. 82

9 JPMCB-CAP WORLD GROWTH AND INCOME FUND INC

47, 248, 000

0. 80

10 SSB HG09 AMERICAN FUNDS INSURANCE SERIES INTERNATIONAL FUND

44, 361, 000

0. 75

11 JP MORGAN CHASE BANK RE ABU DHABI INVESTMENT AUTHORITY

38, 889, 040

0. 66

12 BBH BOSTON S/ A VANGRD EMG MKTS STK INFD

38, 351, 820

0. 65

13 PERUSAHAAN PEMGELOLA ASET (PERSERO), PT

36, 923, 712

0. 62

14 PT PRUDENTIAL LIFE ASSURANCE-REF

36, 583, 500

0. 62

15 THE BANK OF NEW YORK MELLON DR

30, 243, 350

0. 51

16 JPMORGAN CHASE BANK NA RE NON-TREATY CLIENTS - 2157804006

29, 825, 414

0. 50

17 DANAREKSA PERSERO, PT S/ A 03

28, 229, 712

0. 48

18 PT JAMSOSTEK (PERSERO) - JHT

28, 035, 000

0. 47

19 BBH LUXEMBOURG S/ A FIDELITY FD, SICAV-SE ASIA FD

27, 642, 000

0. 47

20 PT AIA FINL - UL EQUITY

27, 565, 000

0. 46

TOTAL

4, 074, 253, 015

68. 71

Ot her Shareholders (3, 156)

1, 857, 266, 985

31. 29

(11)

SMGR’ s COMPARATIVE & COMPETITIVE ADVANTAGE HAS DRIVEN SMGR TO

BE THE MARKET LEADER IN INDONESIA

SMGR’ s COMPARATIVE &

COMPETITIVE ADVANTAGE

MARKET SHARE + 45%

MARKET

LEADER

MARKET

LEADER

(12)



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 2008: 18.0 mn tons and EoY 2009: 19.0 mn tons

SMGR’ s PRODUCTION FACILITIES ARE WELL SUPPORTED BY STRATEGICALLY

LOCATED MARKETING AND DISTRIBUTION FACILITIES

(2009)

T eluk Bayur Sumat era Kalimant an Sulawesi Maluku Papua Lombok Bali Ja va Bat am Ciwandan

T anj ung Priok _{Jakart a}

Samarinda Banj armasin Palu Bit ung Ambon Makassar Biringkasi Bali T abanan Denpasar Singaraj an DI Yogyakart a

Lempuyangan Jant i Cent ral Java T egal Purwokert o Kudus Magelang Solo/ Palur Alas T uwo Moj opahit Sayung West Java

Serang T angerang Bogor Cibit ung Bandung T asik Malaya Cirebon Narogong Belawan Singapore Kuala Lumpur T uban Surabaya

Cement Plant Packing Plant Port

War ehouse

East Java Margomulyo T anj ung Wangi Bangkalan Swabina Aleh

Pelabuhan T uban

Pelabuhan Gresik

Installed Cap.:

5.9 mn tons

Installed Cap.:

9.0 mn tons

Installed Cap.:

4.1 mn tons

(13)

8728

9601

12209

14.387 3328

4001

5354

6. 774

1539

1999

7532

2892

3387

4.342 2397

1779

4. 772

3867

2848

2234

3.326 2523

1775

1296

1002

0 2000

4000

6000

8000

10000

12000

14000

16000

2005

2006

2007

2008

2009

Re ve nue

Gross Profit

Ope rating Profit

Ebitda

Ne t Profit

(Rp billions)

CAGR

(2005 – 2009)

Revenue

18%

Gross Profit

24%

Operating Income

30%

EBITDA

24%

Net Income

35%

Total assets

15%

Total Equity

23%

(14)

STRONG BALANCE SHEET AND RETURNS

Cash balance (IDR bn)

Total debt (IDR bn)

2. 939

5. 282

3. 836

1. 424

1. 929

2005

2006

2007

2008

2009

CAGR

(05—0

9) 39%

151

854

224

159

180 2005

2006

2007

2008

2009

CAGR (05

_{—09) -35%}

* Include short t erm invest ment

Debt/ EBITDA

0,10x

0,40x

0,03x

0,06x

0,05x

2005

2006

2007

2008

2009

Return on Assets

17,3%

13,7%

25,7%

20,8%

23,8%

(15)

2. 5%

3. 0%

2. 7%

5. 2%

4. 1%

2005

2006

2007

2008

2009

Average: 3, 5%

1.8%

1.1%

4.1%

0%

JSX

Top-20

*)

I NTP

SMCB

SMGR

SMGR DIVIDEND YIELD IN THE LAST 5 YEARS

*): Based on medi an of Top-20 Bi ggest Market Capi t al i zat i o n JSX l i st ed compani es i n di vi dend yi el d, excl udi ng Semen Gresi k f or FY2009

2009 DIVIDEND YIELD

REGULAR DIVIDENDS



Key determinants of dividend policy:

• Historical dividend payout trends

• Comparison with peers

• Proj ected cash-flows available for dividends (after taking into account

potential expansionary capex etc)

• Analyst and investor expectations

• Shareholder profile

REGULAR DIVIDEND PAYMENTS WITH ATTRACTIVE YIELD

1)_{shares pri ce}

based on cl osi ng pri ce at t he end of year

(16)

3980

5160

5300

5600

5000

4000

3425

4175

3725

4900

6300

7550

7300

8750

9400

1805.52 1830.92

2139.28

2359.21

2745.83

2447.3 2349.1

1832.5

1355.4 1434.07

2020.78

2467.59 2534.35

2777.3 2913.68

2992.45

3630

0 1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

28-Dec-06

30-Mar-07

29-Jun-07

28-Sep-07

28-Dec-07

31-Mar-08

30-Jun-08

29-Sep-08

30-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09

30-Dec-09

31-Mar-10

30-Jun-10

16-Jul-10

SMGR

JCI

(17)

MARKET UPDATE

(6M2010)

SMGR Corporat e Present at ion

Jul y 2010

(18)

MARKET BY GEOGRAPHY (6M2010)

Domest ic Consumption – Java remains as t he

largest market

24%

8%

7%

6%

_3%

East of Indonesia

Nusa Tenggara

Kalimantan

Sulawesi

Java

53%

Sumatera

Domest ic Market Share

Source: ASI (Indonesi a Cement Associ at i on)



SG

SP

ST

1

2

3

4

5

6 REGION

MARKET SHARE (%)

SMGR

INTP

SMCB

BSWA ANDLS

BTRJA

1. JAVA

37. 57

40. 49

19. 39

2. 50

-

0. 04

2. SUMATERA

44. 51

15. 92

9. 36

2. 15

17. 01

11. 05

3. SULAWESI

58. 05

17. 66

0. 88

23. 41

-

-4. KALIMANTAN

52. 94

27. 14

11. 36

8. 56

-

-5. NUSA TENGGR.

38. 60

37. 50

4. 42

19. 48

-

-6. EASTERN IND.

66. 77

18. 41

0. 89

13. 93

-

-TOTAL

(19)

FINANCIAL UPDATE

(3M2010)

SMGR Corporat e Present at ion

Jul y 2010

(20)

FINANCIAL SUMMARY (3M-2010 RESULTS)

EBITDA (Rp bil l ion)

NET INCOME (Rp bil l ion)

EBITDA Margin (%)

3M06

3M07

3M08

3M09

3M10

26. 4%

25. 5%

34. 4%

30. 2%

34. 6%

NET INCOME Margin (%)

3M06

3M07

3M08

3M09

3M10

14. 7%

15. 7%

20. 2%

21. 0%

24. 7%

1125

974

881

537

514

250

500

750 1000

1250

3M-06

3M-07

3M-08

3M-09

3M-10

802

681

519

330

287

200

400

600

800 3M06

3M-07

3M-08

3M-09

3M-10

Description

(Rp bn)

3M-09

3M-10

Change

(%)

Net Revenue

3, 228

3, 247

0. 6

Cost of Revenue

1, 850

1, 705

(7. 8)

Gross Profit

1, 378

1, 541

11. 9

Operating Income

866 1, 011

16. 8

EBITDA

974 1, 125

15. 5

Net Income

681

802 17. 8

(21)

STRATEGIC PROJECTS

SMGR Corporat e Present at ion

(22)

STRATEGIC PROJECTS

New Plants

Location

Capacity

(mn tons)

Investment

(US$ mn)

Construction

Start

Completed

Java

2. 5

304 2008

2012

Sul awesi

2. 5

290 2008

2011

Sub Total

5. 0

594 Power Plants

Location

Capacity

(MW)

Investment

(US$ mn)

Construction

Start

Completed

Sul awesi

2 x 35

114 2010

2012

TOTAL CAPEX

US$ 708mn

These st rat egic proj ect s wil l ensure sust ainabil it y of

t he Company’ s market l eadership

M ain Substation

Elect rical Equipment Foundation

Cement Finish Grinding

_{Preparation Bored Pile}

Coal Storage Steel Structure

Cement Silo Pile Cap Preparation

Jetty Extension Area

T

u

b

a

n

T

u

b

a

n

T

o

n

a

sa

T

o

n

a

sa

T

o

n

a

sa

T

o

n

a

sa

(23)

PRODUCTION CAPACITY (Mio Ton)

20. 5

24. 0

27. 0

17. 7

16.7 15. 2

1.0 0. 7

1.8 2007

2008

2009

2010F

2011F

2012F

2013F

17. 1

18. 0

19. 0

19. 5

Export sal es

▪ Domest ic sal es

▪ Export sal es

▪ Domest ic sal es

▪

(24)

Det ailed capex schedule (US$ mm)

0,67

6 4,82

2 ₆

₅

₆

37 37 41

5 31 5 68 264 230 27 14 24 66 5 5 6 8 7 7 7 4 40 22 2 4 02 383 102 56 57 9 29

7

3

17 30 34

26

9 2 2 10 10 8 5

2008

2009

2010

2011

2012

2013

2014

Tot al HCMP & I CT Mandat or y

Power plant s (under r ev iew) Capac it y ex p.

Ot her s Maint enanc e

Ef f ic ienc y I mpr ov ement

2008

2009

2010

2011

2012

2013

2014

%

3%

18%

32%

30%

8%

4%

5%

Key Items (Capex)

(US$ Mio)

Capaci t y Expansion

594 Power Plant s

114 De-bot t lenecki ng

106 Human Capit al Mast er Plan & ICT

40 Ot hers

101 Mai nt enance

227 Ef f i ciency Improvement

35 Mandat ory

45 Total Capex

1. 262

(25)

ENVIRONMENTAL FOCUS

SMGR Corporat e Present at ion

(26)

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

SMGR IS FOCUSED ON DRIVING VALUE THROUGH AN

ENVIRONMENTALLY-SUSTAINABLE BUSINESS PLATFORM

1. Alternat ive Fuel

The use of al t ernat i ve 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. Wast e Heat Recovery Power Generation

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 Conser vat ion Program

• Communit y Devel opment Program

• Environment Monit oring Program

• Environment Management Program

• Resources Conser vat ion Program

• Communit y Devel opment Program

(27)

FUTURE OF INDONESIA’ S CEMENT INDUSTRY

SMGR Corporat e Present at ion

(28)



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

0

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 Southeast Asia

Sour ce: Int er nal Resear ch

2020:

76 mio

t ons

2030:

142 mio

t ons

2030:

142 mio

t ons

(29)

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

20

16

6

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

34

(30)

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

0

5

10

15

20

25

30

35 1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Bag Consumpt i on

Bul k Consumpt i on

SO FAR INFRASTRUCTURE EXPANSION HAS BEEN RELATIVELY SLOW

Bag and Bul k cement consumpt ion 1997 – 2009 (mil l ion t ons)

(31)

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

405 Priorit y Proj ect s

8 2, 474

342 1, 026

Pot ent ial Proj ect s

19 11, 774

857 2, 571

TOTAL

30 15, 248

1, 334

4, 002

Sour ce: Nat i onal Devel opm ent Pl anni ng Agency/ Redwi ng est i mat es

INDONESIA PLANS TO INVEST HEAVILY IN INFRASTRUCTURE – PARTICULARLY

TOLL-ROADS

TOTAL VALUE:

US$34, 140 mn

Det ails Toll Road

Proj ect s

(32)

IN ADDITION TO CEMENT DEMAND FROM TOLL ROAD PROJECTS, THE MULTIPLIER

EFFECT WILL FURTHER STRENGTHEN RETAIL CEMENT DEMAND

Riau

480,000

Riau

480,000

W. Java

507,000

W. Java

507,000

Lampung

600,000

Lampung

600,000

S. Sumatera

216,000

S. Sumatera

216,000

N. Sumatera

408,000

N. Sumatera

408,000

Jabotabek

264,000

Jabotabek

264,000

E. Java

693,000

E. Java

693,000

C. Java

507,000

C. Java

507,000

Bali

24,000

Bali

24,000

W. Sumatera

165,000

W. Sumatera

165,000

N. Sulawesi

138,000

N. Sulawesi

138,000

Potential cement demand : Toll road projects 2010 to 2014

(33)

SMGR LONG TERM STRATEGIC FOCUS

SMGR

THE OVERALL

STRATEGY

COMBINES

6 CRITICAL

ELEMENTS

THE OVERALL

STRATEGY

COMBINES

6 CRITICAL

ELEMENTS

1. Undert ake Capacit y Growt h

2. Manage Energy Securit y

3. Enhance Company Image

4. Move Closer To The Cust omer

5. Enable Corporat e Growt h

6. Manage Key Risks

1. Undert ake Capacit y Growt h

2. Manage Energy Securit y

3. Enhance Company Image

4. Move Closer To The Cust omer

5. Enable Corporat e Growt h

(34)

APPENDIX

SMGR Corporat e Present at ion

(35)

INDONESIA AT A GLANCE



Area

: 1. 9 million km



Capital City

: Jakarta



Significant Islands

: Java, Sumatera, Kalimantan, Sulawesi, Nusa Tenggara Islands, Papua

• Population (2009)

: 230 Million

• Population Growt h

: 1. 3% p. a.

2008

2009

2010F

• Annual GDP Growt h

:

6. 1%

4. 5%

5. 5%

• Annual Inflation rate

:

11. 1%

2. 8%

5. 5%

• BI Rate (year end)

:

9. 25%

6. 5%

7. 25%

• US$ Exchange Rat e

:

Rp10, 950

Rp9, 400

Rp9, 100

Singapor e Kuala

Lum pur

Jakarta

*

Sumatera

Java

Kalimantan

Sulawesi

Papua

(36)

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:

Gedung The East, 18

_Floor,

Jln. Lingkar Mega Kuningan Kav. E3.2 No. 1,

Jakarta 12950 – Indonesia

Phone : (62-21) 5261174 – 5

Fax

: (62-21) 5261176

www.semengresik.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 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 omission therefrom which might otherwise arise is hereby expresses disclaimed.

(1)

30

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

405 Priorit y Proj ect s

8 2, 474

342 1, 026

Pot ent ial Proj ect s

19 11, 774

857 2, 571

TOTAL

30 15, 248

1, 334

4, 002

Sour ce: Nat i onal Devel opm ent Pl anni ng Agency/ Redwi ng est i mat es

INDONESIA PLANS TO INVEST HEAVILY IN INFRASTRUCTURE – PARTICULARLY

TOLL-ROADS

TOTAL VALUE:

US$34, 140 mn

Det ails Toll Road

Proj ect s

(2)

IN ADDITION TO CEMENT DEMAND FROM TOLL ROAD PROJECTS, THE MULTIPLIER

EFFECT WILL FURTHER STRENGTHEN RETAIL CEMENT DEMAND

Riau

480,000

Riau

480,000

W. Java

507,000

W. Java

507,000

Lampung

600,000

Lampung

600,000

S. Sumatera

216,000

S. Sumatera

216,000

N. Sumatera

408,000

N. Sumatera

408,000

Jabotabek

264,000

Jabotabek

264,000

E. Java

693,000

E. Java

693,000

C. Java

507,000

C. Java

507,000

Bali

24,000

Bali

24,000

W. Sumatera

165,000

W. Sumatera

165,000

N. Sulawesi

138,000

N. Sulawesi

138,000

Potential cement demand : Toll road projects 2010 to 2014

(3)

32 SMGR LONG TERM STRATEGIC FOCUS

SMGR

THE OVERALL

STRATEGY

COMBINES

6 CRITICAL

ELEMENTS

THE OVERALL

STRATEGY

COMBINES

6 CRITICAL

ELEMENTS

1. Undert ake Capacit y Growt h

2. Manage Energy Securit y

3. Enhance Company Image

4. Move Closer To The Cust omer

5. Enable Corporat e Growt h

6. Manage Key Risks

1. Undert ake Capacit y Growt h

2. Manage Energy Securit y

3. Enhance Company Image

4. Move Closer To The Cust omer

5. Enable Corporat e Growt h

(4)

APPENDIX

SMGR Corporat e Present at ion

Jul y 2010

(5)

34 INDONESIA AT A GLANCE



Area

: 1. 9 million km



Capital City

: Jakarta



Significant Islands

: Java, Sumatera, Kalimantan, Sulawesi, Nusa Tenggara Islands, Papua

• Population (2009)

: 230 Million

• Population Growt h

: 1. 3% p. a.

2008

2009

2010F

• Annual GDP Growt h

:

6. 1%

4. 5%

5. 5%

• Annual Inflation rate

:

11. 1%

2. 8%

5. 5%

• BI Rate (year end)

:

9. 25%

6. 5%

7. 25%

• US$ Exchange Rat e

:

Rp10, 950

Rp9, 400

Rp9, 100

Singapor e Kuala

Lum pur

Jakarta

*

Sumatera

Java

Kalimantan

Sulawesi

Papua

(6)

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:

Gedung The East, 18

_Floor,

Jln. Lingkar Mega Kuningan Kav. E3.2 No. 1,

Jakarta 12950 – Indonesia

Phone : (62-21) 5261174 – 5

Fax

: (62-21) 5261176

www.semengresik.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