Semen indonesia

1. Together We Build a Better Future
0

2. INDONESIA’S CEMENT INDUSTRY: NOW and THE FUTURE
SMGR Corporate Presentation
MARCH 2014

3. Singapore
Kuala
Lumpur
SMGR
2
1
3
4
5
1
1
6
7
CEMENT INDUSTRY AT A GLANCE
2
1. SEMEN INDONESIA 29.5 mn ton
- Semen Padang : 7.3 mn ton
- Semen Gresik : 14.4 mn ton
- Semen Tonasa : 7.8 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 12.1 mn ton
6. Semen Bosowa 6.0 mn ton
7. Semen Kupang 0.5 mn ton
TOTAL 71.5 mn ton
• Design Capacity : 68.0 mio tons 71.5 mio tons 82.2 mio tons
• Production Capacity : 55.2 mio tons 60.0 mio tons 69.8 mio tons
• Domestic Growth : 5.5% 6.0% 6.0%
• Domestic Utilization : 99% 99% 95%
•Supply
 Domestic : 58.0 mio tons 61.0 mio tons 65.8 mio tons
 Export : 0.5 mio tons 0.5 mio tons 0.5 mio tons
 Import : 3.3 mio tons2) 3.0 mio tons 3) 3.0 mio tons3)
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
DOMESTIC CAPACITY (2014)
CEMENT INDUSTRY 2013 2014F 1) 2015F 1)

4. ‘000 tons
ton(‘000)
2013
2014F
2015F
2016F
2017F
Installed Capacity
68,000
71,500
82,200
97,800
100,800
Real Production
55,200
62,205
69,870
78,240
85,680
Consumption
58,580
62,095
65,820
69,770
73,956
Surplus/(deficit)
-3,380
110
4,050
8,470
11,724
Domestic Utilization
100%
100%
94%
89%
86%
Export
500
500
500
500
500
Domestic Consumption Growth
5.5%
6%
6%
6%
6%
DOMESTIC DEMAND VS NATIONAL CAPACITY (2013 – 2017)
0
20.000
40.000
60.000
80.000
100.000
120.000
2013
2014F
2015F
2016F
2017F
Design Capacity
Real Production
Consumption Cement

5. No
Company
Targeted Plant Location
Declared Capacity
(mn tons)
Prognose Design Capacity (mn tons)
Investment
(US$ mn)
Remarks + Local Partner
1
Siam Cement (Thailand)
West Java
1.8
1.8
360
Greenfield, Sukabumi
2
CNBM (China)
Central Java
2.4
0
350
Greenfield, Semen Grobogan
3
Semen Merah Putih
Banten
11.5
3.0
n.a
Greenfield (PT Cemindo Gemilg)
4
Anhui Conch Cement (China)
- Tanjung
- Tanah Grogot
- Pontianak
- West Papua
Various
- South Kalimantan
- East Kalimantan
- West Kalimantan
- West Papua
13.7
3.8
3.8
3.8
2.4
3.0
2,350
400
600
600
750
Greenfield
Greenfield
Greenfield
Greenfield
Greenfield
5
Ultratech
Wonogiri, Centr Java
4.5
0
827
Greenfield
6
Semen Puger
East Java
0.6
0
n.a
Upgrading
7
Semen Barru
South Sulawesi
3.3
0
470
Greenfield (South Sulawesi)
8
Semen Panasia
Central Java
2.0
1.5
240
Greenfield (Banyumas)
9
Jui Shin Indonesia
West Java
1.5
1.5
n.a
Greenfield (Karawang)
T O T A L
40.3
10.8
4,470
New Cement Capacity from Existing Players (2013 – 2017)
No
Company
Targeted Plant Location
Declared Capacity
(mn tons)
Prognose Design Capacity (mn tons)
Investment
(US$ mn)
Remarks
1
Semen Indonesia
Java, Sumatera, Sulawesi
11.5
9.0
970
Upgrading + green/brownfield
2
Indocement
Java, Kalimantan
8.8
6.3
1,560 (E)
Cement Mill + brown/greenfield
3
Holcim
East Java
3.8
3.4
680 (E)
Brown/Greenfield
4
Bosowa
Java, Sulawesi
7.9
3.4
620
Cement Mill + Brownfield
5
Semen Andalas
Sumatera
1.6
0
300
Greenfield
6
Semen Baturaja
Sumatera
2.6
1.5
325
Greenfield/Brownfield
T O T A L
36.2
23.6
4,130
ADDITIONAL INSTALLED CAPACITY IN THE NEXT 5 YEARS

6. Source: Deutsche, Indonesia Cement Association
229
kg
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
China
Singapore
Malaysia
Vietnam
Thailand
Indonesia
Philippines
India
kg/capita
COMPARISON: CEMENT CONSUMPTION PER CAPITA 2013

7. INDONESIA’S ECONOMY AND DOMESTIC CEMENT CONSUMPTION GROWTH
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
58,0
9,2
39,1
27,2 27,5
30,2
31,5 32,1
34,2
38,1
6,10% 6,00%
5,70%
6,80%
5,6%
4,7%
5,1%
5,4%
4,4%
6.3%
6.1%
4.60%
6,50%
1.3%
5,5%
14,5%
6.0%
11.5%
4.2%
9.7%
2.5%
6.6%
1.1% 1.8%
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 2013 2M2014
0,0%
10,0%
Cement growth % (RHS) 20,0%

8. 0
5
10
15
20
25
30
35
40
45
1997
1999
2001
2003
2005
2007
2009
2011
2013
21,0
18,1
16,9
20,0
22,7
23,7
23,7
25,2
25,5
26,9
28,2
32,2
32,8
34,2
39,2
44,1
45,7
6,5
1,0
1,9
2,3
3,0
3,5
3,8
5,0
6,0
5,1
6,0
5,9
6,2
6,6
8,8
10,8
12,2
Bagged Cement
Bulk Cement
Bag and Bulk cement consumption (million tons)
Source: Indonesia Cement Association and the Company’s data
ARISING INFRASTRUCTURE EXPANSION TREND

9. Retail (residential) sector is the largest consumer of cement in Indonesia
Bag
79%
Bulk 21%
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
DOMESTIC MARKET CONSUMPTION (2013)

10. Together We Build a Better Future
SOURCES : DIREKTORAT JENDERAL BINA MARGA
Infrastructure Project in Corridor #1 (Trans Sumatera)
Bakaheuni - Indralaya
Indralaya - Pekanbaru
Pekanbaru - Medan
Medan - Aceh
Development Phases: Phase I (2015-2020) - Bakauheni-Indralaya - Pekanbaru-Medan Phase II (2020-2025) - Indralaya-Pekanbaru - Medan-Banda Aceh - Tebing Tinggi-Sibolga Phase III (>2025) - Pekanbaru-Padang - Palembang-Bengkulu
SEMEN ANADALAS
SEMEN BATURAJA
SEMEN PADANG
PACKING PLANT
5
1
2
3
4
1
Malahayati
2
Lhokseumawe
3
Medan
4
Batam
5
Dumai
Grinding Plant Dumai
Grinding Plant Lampung
1
Grinding Plant Palembang
2
1
2

11. MARKET UPDATE
SMGR Corporate Presentation
MARCH 2014

12. MARKET AND MARKET SHARE BY GEOGRAPHY
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 41.1 38.3 18.3 2.0 - - -
2. SUMATERA 42.5 14.2 13.1 3.0 16.0 10.0 -
3. KALIMANTAN 48.2 31.2 12.0 9.0 - - -
4. SULAWESI 60.5 16.8 0.9 22.0 - - -
5. NUSA TENGGR. 41.3 33.4 3.7 16.6 - - 5.0
6. EASTERN IND. 56.6 18.3 0.8 24.3 - -
TOTAL
INDONESIA
43.7 30.2 14.1 5.8 3.6 2.3 0.3



SG
SP
ST
1
2
4 3
5
6
21.7%
7.9%
7.5%
6.2 2.0%
Java
54.7%
Sumatera
Cement Distribution (2M2014)
Domestic Market Share (2M2014)

13. 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 39.4 39.8 18.8 2.0 - - -
2. SUMATERA 45.2 12.5 13.4 2.9 15.7 10.4 -
3. KALIMANTAN 52.2 27.7 10.9 9.1 - - -
4. SULAWESI 64.2 13.4 0.9 21.6 - - -
5. NUSA TENGGR. 41.8 32.6 3.7 15.4 - - 7.0
6. EASTERN IND. 56.2 21.8 0.8 21.2 - -
TOTAL
INDONESIA
43.9 30.4 14.5 5.3 3.3 2.2 0.4



SG
SP
ST
1
2
4 3
5
6
21.0%
7.6%
7.4%
5.6 2.1%
Java
56.4.%
Sumatera
Cement Distribution (FY 2013)
Domestic Market Share (FY-2013)
MARKET AND MARKET SHARE BY GEOGRAPHY

14. MARKET UPDATE - Cement Consumption 2M2014
*) Source: Indonesia Cement Association, un-audited figures
AREA
2M 2014
2M 2013
CHANGE (%)
Jakarta
826,452
846,457
(2.4)
Banten
458,780
554,802
(17.3)
West Java
1,399,599
1,272,972
9.9
Central Java
958,742
1,015,038
(5.5)
Yogyakarta
147,911
148,353
(0.3)
East Java
1,224,161
1,134,561
7.9
Total Java
5,015,472
4,972,183
0.9
Sumatera
1,985,722
1,937,401
2.5
Kalimantan
725,880
693,319
4.7
Sulawesi
690,015
612,192
12.7
Nusa Tenggara
564,496
599,634
(4.3)
Maluku & Papua
180,687
240,581
(24.9)
TOTAL INDONESIA
9,162,272
9,045,310
1.3
Export Cement
14,955
23,337
(35.9)
Export Clinker
-
-
-
Total Export
14,955
23,337
(35.9)
GRAND TOTAL
9.177,227
9,068,647
1.2
2M 2014 – Domestic Consumption (mio tons)
DESCRIPTION
2M-14
2M-13
CHANGE (%)
DOMESTIC
4,006,513
3,941,467
1.7
Semen Indonesia
2,124,645
2,038,679
4.2
Semen Padang
1,074,457
1,129,834
(4.9)
Semen Tonasa
807,411
772,954
4.5
EXPORT
14,955
14,537
2.9
GRAND TOTAL
4,021,468
3,956,004
1.7
Industry Sales Type (mio tons)
2M-14
2M-13
YoY Change
Bag
7.26 (79.4%)
7.24 (80.0%)
0.3%
Bulk
1.89 (20.6%)
1.81 (20.0%)
4.5%
2M 2014 - SMGR Sales Volume (million tons)
SMGR Sales Type (mio tons)
2M-14
2M-13
YoY Change
Bag
3.05 (76.1%)
3.08 (78.1%)
1.0%
Bulk
0.96 (23.9%)
0.86 (21.9%)
11.2%

15. *) Source: Indonesia Cement Association, un-audited figures
AREA
12M 2013
12M 2012
CHANGE (%)
Jakarta
5,379,767
5,093,517
5.6
Banten
3,474,592
3,186,377
9.0
West Java
8,615,293
8,145,885
5.8
Central Java
6,848,260
6,158,689
11.2
Yogyakarta
986,157
829,343
18.9
East Java
7,400,367
6,964,532
6.3
Total Java
32,704,304
30,378,342
7.7
Sumatera
12,182,616
12,008,597
1.4
Kalimantan
4,387,998
4,077,814
7.6
Sulawesi
4,273,766
4,111,423
3.9
Nusa Tenggara
3,255,259
3,164,283
2.9
Maluku & Papua
1,201,093
1,223,950
(1.9)
TOTAL INDONESIA
58,005,037
54,964,407
5.5
Export Cement
178,418
115,261
54.8
Export Clinker
396,934
100,416
295.3
Total Export
575,352
215,677
166.8
GRAND TOTAL
58,580,388
55,180,084
6.2
FY 2013 – Domestic Consumption (mio tons)
DESCRIPTION
12M-13
12M-12
CHANGE (%)
DOMESTIC
25,449,714
22,477,445
13.2
Semen Indonesia
13,239,252
11,398,751
16.1
Semen Padang
6,927,490
6,567,423
5.5
Semen Tonasa
5,282,971
4,511,270
17.1
EXPORT
328,756
76,956
327.3
GRAND TOTAL
25,778,470
22,554,391
14.3
Industry Sales Type (mio tons)
FY-13
FY-12
YoY Change
Bag
45.7 (78.8%)
44.0 (80.3%)
3.7%
Bulk
12.2 (21.2%)
10.8 (19.7%)
13.6%
FY 2013 - SMGR Sales Volume (million tons)
SMGR Sales Type (mio tons)
FY-13
FY-12
YoY Change
Bag
19.4 (76.4%)
17.6 (78.7%)
10.1%
Bulk
6.0 (23.6%)
4.7 (21.3%)
26.0%
MARKET UPDATE - Cement Consumption FY-2013

16. COMPANY PROFILE
SMGR Corporate Presentation
MARCH 2014

17.  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 19th, 2012: IDR91.9tn
BRIEF HISTORY
0,0
5,0
10,0
15,0
20,0
25,0
30,0
1957
-
1970
-
1980
-
1984
1985
1986
-
1990
-
1995
1997
1998
-
2006
2007
2008
2009
2010
2011
2012
2013
SMGR CAPACITY BUILD-OUT (Mio TONS)
Pre-consolidated capacity
Post-consolidated capacity
_ _ _ _ _ _
SMGR IS THE #1 CEMENT COMPANY IN INDONESIA
• Total Installed capacity: 30 million
tons (2013) including TLCC;
• Market share of Semen Indonesia in
2013 was 44% based on sales volume
• 2013 Revenues amounted to IDR 19.6
trillion (equivalent to EUR 1.2 billion),
with EBITDA margin of 35%

18. Public
The Government of the Republic of Indonesia
PT Semen Indonesia (Persero) Tbk.
PT Semen Padang
PT Semen Tonasa
OWNERSHIP STRUCTURE1
¹ As of Jan, 2014
51.01%
48.99%
99.99%
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%
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 Contractor & 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%
FOCUSES IN CORE BUSINESS
PT Semen Gresik

19. 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
22 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
Competitiveness of Semen Indonesia

20. FINANCIAL UPDATE
SMGR Corporate Presentation
MARCH 2014

21. 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
EBITDA2) 5,402 6,869 27.2
Net Income 3,925 4,847 23.5
EPS (Rp) 662 817 23.5 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
4,773 4,970
3,867
2,849
6,869
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2007 2008 2009 2010 2011 2012
FINANCIAL SUMMARY: FY2012 RESULTS

22. 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
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
4,773 4,970
3,867
2,849
6,869
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2007 2008 2009 2010 2011 2012
FINANCIAL SUMMARY: FY2012 RESULTS
Description
(Rp bn)
FY 2011 FY 2012
Change
(%)
H1 2013
Net Revenue 16,379 19,598 19.7% 11,422
Cost of Revenue 8,892 10,300 15.8% 6,275
Gross Profit 7,487 9,297 24.2% 5,146
Operating Income 4,892 6,181 26.4% 3,366
EBITDA 5,402 6,869 27.2% 3,858
Net Income 3,925 4,847 23.5% 2,584
Total Assets 19,661 26,579 35.2% 26,713
Equity 14,615 18,165 24.3% 18,591
Debt 1,890.7 3,846.7 103.5% 4,141
EBITDA Margin (%) 33% 35% - 33.8%
DEBT/EBITDA (x) 0.35x 0.56x - 0.53x2

23. EBITDA (Rp billion)
NET INCOME (Rp billion)
EBITDA Margin (%)
9M-09 9M-10 9M-11 9M-12 9M-13
32.5% 34.5% 32.8% 34.6% 33.6%
NET INCOME Margin (%)
Description
(Rpbn)
9M-2012 9M-2013 Change
(%)
Revenue 13,677 17,391 27.2%
Cost of revenue
7,260 9,551 31.5%
Gross profit 6,407 7,840 22.4%
Operating
expenses
2,188 2,794 27.7%
Operating
income
4,275 5,104 19.4%
Ebitda 4,728 5,838 23.5%
Net Income 3,389 3,906 15.3%
EPS (full
amount)
571 659 15,3% 3,906
2,408 2,522
2,761
3,389
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
9M09 9M10 9M11 9M2012 9M2013
9M-09 9M-10 9M-11 9M-12 9M-13
23.1% 24.5% 23.8% 24.8% 22.5%
5,838
4,728
3,546 3,805 3,379
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
9M09 9M10 9M11 9M12 9M13
Ratio (%) Formula
9M
2012
9M
2013
Ebitda margin Ebitda / Revenue 34.6 33.6
Interest coverage (x)
Ebitda / Interest
expense
262.5 25.15
Cost ratio
[COGS + Opex] /
Revenue
69.1 71.0
Total debt to equity *)
Total debt / Total
equity
16.7 20.3
Total debt to asset *)
Total debt / Total
asset
12.1 14.5
*) Total debt calculated from interest bearing debt
FINANCIAL SUMMARY: 9M-2013 RESULTS

24. Cash balance (IDR bn) Total debt (IDR bn)
2,650
3,846 3,905 3,682 3,317
5,283
2008 2009 2010 2011 2012 9M2013
3,850 4,012
251 199
686
1,871
2008 2009 2010 2011 2012 9M2013
* 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
STRONG BALANCE SHEET AND RETURNS

25. 50% 50% 55% 50% 45% 45%
50%
2007 2008 2009 2010 2011 2012 2013
Average: 50%
SMGR DIVIDEND PAY OUT RATIO IN THE LAST 7 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
1.261,7
1.829,5 1.816,7
1.962,7
2.181,3
2.416,6
0
500
1000
1500
2000
2500
3000
2007 2008 2009 2010 2011 2012 2013
Total Dividend Payout
Total
Dividend
(IDR billion)

26. COGM & COGS BREAKDOWN (FY-2013)

27. STRATEGIC PROJECTS
SMGR Corporate Presentation
MARCH 2014

28. SMGR LONG TERM STRATEGIC FOCUS
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
SMIG

29. CEMENT PLANTS PROJECTS
Tuban’s view
Pyroprocessing Tonasa V
Jetty Extension Area
Tuban
Tonasa
Tonasa
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

30. INSTALLED CAPACITY (Mio Ton) 17,118191920,225,33031,833,339,340,820072008200920102011201220132014F2015F2016F2017FInstalled Capacity

31. UP GRADING CAPACITY PLAN
Year
Plant
Design Capacity
(mio tons)
Est. Time Operation
Location
2013
New Cement Mill
1.5
Q3
Tuban
2014
New Cement Mill
0.9
Q3
Dumai
Cement Mill
0.4
Q2
Gresik Plant B
2015
New Cement Mill
1.5
Q3
Tonasa
2015
New Cement Plant
3.0
Q4
Indarung
2016
New Cement Plant
3.0
Q2
Rembang
2017
New Cement Plant
-
-
Domestic Area

32. CONCLUSION: WHY SMGR?
SMGR Corporate Presentation
MARCH 2014

33. 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 10M-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 DRIVES SMGR TO BE THE MARKET LEADER IN INDONESIA

34. Gresik Office: Semen Indonesia 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
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.
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