SMGR CORP Presentation June 2015

(1)

Together We Build a Better Future

0

(2)

INDONESIA’S CEMENT INDUSTRY: NOW and THE FUTURE

SMGR Corporate Presentation

JUNE 2015

INDONESIA’S CEMENT INDUSTRY: NOW and THE FUTURE

(3)

Singapore Kuala

Lumpur

22

11 CEMENT INDUSTRY AT A GLANCE

SMGR

• Design Capacity

: 71.6 mio tons

88.2 mio tons

• Production Capacity : 62.2 mio tons

70.0 mio tons

• Domestic Growth

: 3.3%

0.0%

• Domestic Utilization : 97%

88%

CEMENT INDUSTRY

2014

2015F

1)

• Domestic Utilization : 97%

88%

•Supply



Domestic

: 59.9 mio tons

59.9 mio tons



Export

: 0.3 mio tons

2.0 mio tons



Import

: 2.2 mio tons

2)

2.5 mio tons

2)

1) Based on the Company’s forecast

2) Imported cement & clinker (member non –ASI)

CEMENT INDUSTRY AT A GLANCE

1

66

77 1. Semen Indonesia

30.0 mn ton

2. Semen Andalas

1.6 mn ton

3. Semen Baturaja

2.0 mn ton

4. Indocement TP

25.9 mn ton

5. Holcim Indonesia

12.1 mn ton

97.7 mio tons

75.5 mio tons

8.0%

86%

DOMESTIC CAPACITY (2015

)

2016F

1)

2 6. Semen Bosowa

6.0 mn ton

7. Semen Kupang

0.5 mn ton

8. Semen Merah Putih

2.5 mn ton

9. Semen Anhui Conch

1.7 mn ton

10. Semen Jui Shin

2.0 mn ton

11. Siam Cement

1.8 mn ton

12. Semen Pan Asia

1.8 mn ton

13. Semen Puger

0.3 mn ton

TOTAL

88.2 mn ton

86%

(4)

New Cement Capacity from Existing Players (2013 – 2017)

No

Company

Targeted Plant

Location

Declared Capacity

(mn tons)

Prognose

(mn tons)

1 Semen

_Indonesia

Java, Sumatera,

_Sulawesi

11.5

2 Indocement

Java, Kalimantan

8.8

3 Holcim

East Java

3.8 ADDITIONAL INSTALLED CAPACITY IN THE NEXT 5 YEARS

New Cement Capacity from Potential Players (2013 – 2017)

No

Company

Targeted Plant

Location

Declared Capacity

(mn tons)

1 Siam Cement (Thailand)

Sukabumi, West Java

1.8

2 CNBM (China)

Central Java

2.4

3 Semen Merah Putih

Bayah, Lebak, Banten

11.5

4 Bosowa

Java, Sulawesi

7.9

5 Semen Andalas

Sumatera

1.6

6 Semen Baturaja

Sumatera

2.6 T O T A L

36.2

4 Anhui Conch Cement

- Tanjung

- Tanah Grogot

- Pontianak

- West Papua

Various

- South Kalimantan

- East Kalimantan

- West Kalimantan

- West Papua

13.7

3.8

2.4

5 Ultratech

Wonogiri, Centr Java

4.5

6 Semen Puger

East Java

0.6

7 Semen Barru

Barru, South Sulawesi

3.3

8 Semen Panasia

Ajibarang, Central Java

2.0

9 Jui Shin Indonesia

Karawang, West Java

1.5 T O T A L

40.3 Prognose Design Capacity

(mn tons)

Investment

(US$ mn)

Remarks

9.0

970 Upgrading +

_{green/brownfield}

6.3 1,560 (E)

Cement Mill +

_{brown/greenfield}

3.4 680 (E)

Brown/Greenfield

ADDITIONAL INSTALLED CAPACITY IN THE NEXT 5 YEARS

Declared Capacity

Prognose Design

Capacity (mn tons)

Investment

(US$ mn)

Remarks + Local Partner

1.8 (2016)

360 Greenfield

0

350 Greenfield, Semen Grobogan

4.8 (2016)

600 Greenfield (PT Cemindo Gemilg)

3.4

620 Cement

Mill + Brownfield

0

300 Greenfield

1.5

325 Greenfield/Brownfield

23.6 4,130

0

827 Greenfield

0 n.a

Upgrading

0

470 Greenfield (Fajar Group)

1.5 (2016)

240 Greenfield

2.0 (2015)

n.a

Greenfield

(5)

kg

1,819

1,600

1,800

2,000

kg/capita

COMPARISON: CEMENT CONSUMPTION PER CAPITA 201

1,104

734

540

200

400

600

800 1,000

1,200

1,400

1,600

Source: Deutsche, Indonesia Cement Association

0

200 Ch

ina

Sin

_gap

ore

Ma

lay

_sia

Vie

_tna

_m

kg/capita

COMPARISON: CEMENT CONSUMPTION PER CAPITA 2014

505

238 ₂₀₈

₂₀₃

Vie

tna

_m

Tha

_ilan

d

Ind

one

_sia

Phil

ipp

ine

_s

(6)

INDONESIA’S ECONOMY AND DOMESTIC CEMENT CONSUMPTION GROWTH

Domestic consumption (LHS)

GDP growth % (RHS)

(mio tons)

50.0

60.0 Cement growth % (RHS)

Growth

27.2

27.5

30.2

31.5

32.1

34.2

38.1

Source: Indonesian Cement Association & BPS Statistic

1.1%

9.7%

5.8%

-30.0

-20.0

-10.0

2002

2003

2004

2005

2006

2007

2008

2009

AND DOMESTIC CEMENT CONSUMPTION GROWTH

GDP growth % (RHS)

54.9

58.0

60.0 14.5%

17.7%

20.0%

Cement growth % (RHS)

Growth

2009

2010

2011

2012

2013

2014 5M2015

(7)

ARISING INFRASTRUCTURE EXPANSION

Bag and Bulk cement consumption (million tons)

40 22.7 23.7 23.7

25.2 25.5

26.9

10 1997

1999

2001

2003

2005

Bagged Cement

INFRASTRUCTURE EXPANSION TREND

Bag and Bulk cement consumption (million tons)

44.1 45.7

46.9

26.9

28.2 2007

2009

2011

2013

5M2015

(8)

Bulk

22%

• Ready

• Fabricator (pre

•

• Ready

• Fabricator (pre

• ±

DOMESTIC MARKET CONSUMPTION

Bag

78%

Key Drivers of Domestic cement demand:

• Projects (mortar, render):

• Housing:

• Cement based industry:

• Housing:

• Cement based industry:

±

Retail (residential) sector is the largest

consumer of cement in Indonesia

Key Drivers of Domestic cement demand:

• National Economic Growth

• Favorable Interest Rate Environment

• Infrastructure Expansion

• Per Capita Consumption

current low levels

Source: Internal Research

Ready-mix (infrastructure):

±

60%

Fabricator (pre-cast, fiber cement, cement based industry):

±

35%

Ready-mix (infrastructure):

±

60%

Fabricator (pre-cast, fiber cement, cement based industry):

±

35%

DOMESTIC MARKET CONSUMPTION (2015)

Key Drivers of Domestic cement demand:

Projects (mortar, render):

±

5%

Projects (mortar, render):

±

5%

Housing:

±

90%

Cement based industry:

±

10%

Housing:

±

90%

Cement based industry:

±

10%

Key Drivers of Domestic cement demand:

National Economic Growth

Favorable Interest Rate Environment

Infrastructure Expansion

(9)

DOMESTIC

SMGR Corporate Presentation

JUNE 2015

DOMESTIC MARKET UPDATE

(10)



REGION

MARKET SHARE (%)

SMGR

INTP

SMCB

1. JAVA

39.6

38.3

17.7 Domestic Market Share (5M2015

1. JAVA

39.6

38.3

17.7 2. SUMATERA

42.9

12.3

13.8 3. KALIMANTAN

51.4

28.7 4. SULAWESI

64.5

11.8 5. NUSA TENGGR.

38.8

29.8 6. EASTERN IND.

55.8

20.3 TOTAL

INDONESIA

43.3

29.1

13 MARKET BY GEOGRAPHY

Papua

Bali & N T

Sulawesi

Population Distribution (2014)

8.4%

5.8%

5.5% 1.5%

6.0% 2.3%

Cement Distribution (5M2015)

Sulawesi

Kalimantan

Sumatera

21.3%

Java

57.5.%

5.8%

MARKET SHARE (%)

SMCB BSWA ANDLS BTRJA

KPG

CG

(11)

MARKET UPDATE - Cement Consumption

DESCRIPTION

5M2014

5M2015

CHANGE (%)

DOMESTIC

10,467,232

9,913,735

(5.3)

Semen Indonesia

5,648,678

5,366,198

(5.0)

Semen Padang

2,723,628

2,465,747

(9.5)

5M2015 - SMGR Sales Volume

(million tons)

Semen Tonasa

2,094,926

2,081,790

(0.6)

EXPORT

22,155

184,181

731.3 GRAND TOTAL

10,489,387

10,097,916

(3.7)

SMGR Sales Type (mio tons)

5M2014

5M2015

YoY Change

Bag

7.9 (76.4%)

7.7 (78.1%)

(3.2)

*) Source: Indonesia Cement Association, un-audited figures *) Source: Indonesia Cement Association, un-audited figures

Industry Sales Type (mio tons)

5M2014

5M2015

YoY Change

Bag

18.7 (78.9%)

17.8 (78.2%)

(4.7)

Bulk

5.0 (21.1%)

4.9 (21.8%)

(0.8)

Bag

7.9 (76.4%)

7.7 (78.1%)

(3.2)

Bulk

2.4 (23.6%)

2.1 (21.9%)

(12.3)

Cement Consumption 5M2015

AREA

5M2014

5M2015

CHANGE (%)

Jakarta

2,369,820

2,205,871

(6.9)

Banten

1,276,761

1,298,182

1.7 West Java

3,575,296

3,277,570

(8.3)

Central Java

2,544,369

2,552,779

0.3 5M2015 – Domestic Consumption

(mio tons)

Central Java

2,544,369

2,552,779

0.3 Yogyakarta

389,026

357,609

(8.1)

East Java

3,132,778

3,031,792

(3.2)

Total Java

13,288,051

12,723,804

(4.2)

Sumatera

4,989,864

4,837,917

(3.0)

Kalimantan

1,882,895

1,734,512

(7.9)

Sulawesi

1,763,360

1,687,651

(4.3)

Nusa Tenggara

1,317,726

1,365,322

3.6 Maluku & Papua

542,968

524,167

(3.5)

YoY Change

Maluku & Papua

542,968

524,167

(3.5)

TOTAL

INDONESIA

23,784,864

22,873,372

(3.8)

Export Cement

32,155

204,712

536.6 Export Clinker

-

-Total Export

32,155

204,712

536.6 GRAND TOTAL

23,817,019

23,078,084

(3.1)

(12)

SMGR Corporate Presentation

JUNE 2015

COMPANY PROFILE

(13)



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

1998 : Cemex became a strategic partner, Market Cap.: IDR4.9tn

BRIEF HISTORY

SMGR IS THE #1 CEMENT COMPANY IN INDONESIA



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

20,0

25,0

30,0

SMGR CAPACITY BUILD-OUT (Mio TONS)

Post-consolidated capacity

Inauguration of Gresik I, installed capacity of 250,000 ton cement per annum

Initial Public Offering, Market Cap.: IDR0.63tn, resulting shareholding structure post IPO:

) and PT Semen Tonasa (Persero)

became a strategic partner, Market Cap.: IDR4.9tn

SMGR IS THE #1 CEMENT COMPANY IN INDONESIA

became a strategic partner, Market Cap.: IDR4.9tn

24.9% stake in SMGR, Market Cap.: IDR21.5tn

In March 31, Blue Valley Holdings sold all of its stake ownership in SMGR, Market Cap per April 30, 2010: IDR72.1tn

0mm tons, Market Cap per June 29, 2012: IDR67.0tn

otal installed capacity of 2.3mm tons, Market Cap Dec 19

th

_{, 2012: IDR91.9tn}

consolidated capacity

• Total Installed capacity: 30 million

tons (2013) including TLCC;

• Market share of Semen Indonesia in

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3 _

• Market share of Semen Indonesia in

2013 was 44% based on sales volume

(14)

The Government of the Republic of Indonesia

OWNERSHIP STRUCTURE

1

OWNERSHIP STRUCTURE

1

51.01%

PT Semen Indonesia (

PT Semen Padang

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%

Name

PT Semen Gresik

¹ As of Jan, 2014

4. SUPS

Cement Packaging

10.00%

3.

4. FOCUS IN CORE BUSINESS

PT Semen Indonesia (Persero) Tbk.

PT Semen Tonasa

99.99%

Name

Activities

% Ownership

UTSG

Limestone & Clay Mining

55.00%

IKSG

Cement Packaging

60.00%

KIG

Industrial Estate

Thang Long Cement, VN

70.00%

Name

Activities

% Ownership

UTSG

Limestone & Clay Mining

55.00%

IKSG

Packaging Paper

60.00%

KIG

Industrial Estate

65.00%

KIG

Industrial Estate

65.00%

Swadaya Gra

Steel fabrication, contractor

25.00%

Varia Usaha

Transport and general trading

24.90%

Eternit Gresik Building materials

17.60%

SGG Prima Coal Trading Coal

99.99%

SGG Prima Beton Ready Mix Concrete

99.99%

Swadaya Graha Contractor & Machine Fabricator 25.00%

Varia Usaha

Transport and general trading

24.90%

Eternit Gresik

Building materials

17.60%

SGG Energy Prima Coal Mining and Trading

97.00%

SGG Prima Beton Ready Mix Concrete

99.99%

(15)

REGIONAL CEMENT PLAYERS

SMGR Corporate Presentation

JUNE 2015

REGIONAL CEMENT PLAYERS

(16)

Kiln

1 unit

Cement

Mill

1 unit

COMPETITIVENESS OF SEMEN INDONESIA

Grinding

Plant

1 unit Cement

Mill

Kiln

4 unit

Cement

Mill

6 unit

Kiln

4 unit

Cement

Mill

9 unit

_Grinding

Plant

3 unit Cement

Mill

Integrated Cement Plant

4 location

Kiln

13 Unit

Cement Mill

22 Unit

Grinding Plant

2 location

COMPETITIVENESS OF SEMEN INDONESIA

Cement Mill

4 Unit

Warehouse

30 location

Packing Plant

23 location

Sea Port

12 location

Kiln

4 unit

Cement

Mill

6 unit

3 unit Cement

(17)

REGIONAL CEMENT GROWTH YoY (%)

Source: Exane BNPP, Indonesia Cement Association

(18)

Kiln

1 unit

Cement

Mill

1 unit

Grinding

_Plant

STRATEGIC POSITION IN THE REGION

Kiln

4 unit

Cement

Mill

9 unit

Kiln

4 unit

Cement

Mill

6 unit

Grinding

1 unit Cement

Mill

TRATEGIC POSITION IN THE REGION

Kiln

4 unit

Cement

Mill

6 unit

Grindin

(19)

SMGR Corporate Presentation

JUNE 2015

FINANCIAL UPDATE

(20)

FINANCIAL SUMMARY:

Description

(Rpbn)

1Q2014

1Q2015

Change

(%)

Revenue

6,178

6,340

2,6

Cost of revenue

3,483

3,781

8,5

Gross profit

2,695

2,560

-5,0

Operating expenses

995 1,070

7,6

Operating income

1,700

1,489

-12,4

Ebitda

1,998

1,850

-7,4

Profit attributable to

equity holders of parent

entity (Net Income)

1,309

1,190

-9,1

EPS (full amount)

₂₂₁

201 -9,1

Ratio (%)

Formula

1Q14

1Q15

Ratio (%)

Formula

1Q14

1Q15

Ebitda margin

Ebitda / Revenue

32.34 29,18

Interest coverage (x)

Ebitda / Interest

_expense

25.06 25,36

Cost ratio

[COGS + Opex] /

_Revenue

72.74 76,64

Total debt to equity

Total debt / Total

_equity

15.62 15,05

Total debt to asset

Total debt / Total asset

11.41 11,04

FINANCIAL SUMMARY: 1Q2015 RESULTS

EBITDA (Rp billion)

1,185

1,410

1,862

1,998 1,850

750

EBITDA Margin (%)

3M-11

3M-12

3M-13

3M-14

3M-15

33.3%

32.9%

33.6%

32.3%

29.1%

250 500 750

3M-11 3M-12 3M-13 3M-14 3M-15

871 NET INCOME (Rp billion)

Together We Build a Better Future

NET INCOME Margin (%)

3M-11

3M-12

3M-13

3M-14

3M-15

24.4%

23.5%

22.3%

21.2%

18.8%

871

(21)

Cash balance (IDR bn)

3,905

_3,682

3,317

4,213

5,032

5,461

* Include short term investment

STRONG BALANCE SHEET AND RETURNS

2010

2011

2012

2013

2014

1Q2014

Debt/EBITDA

2.00x

0.56x

The projected adjusted debt/EBITDA of 2.0x to

maintain rating level from Moody’s Investors

Service.

0.47x

0.50x

0.06x

0.35x

0.04x

0.14x

0.56x

2008 2009 2010 2011 2012 2013 2014

Total debt (IDR bn)

1,871

3,850

4,083

3,913

3,970

STRONG BALANCE SHEET AND RETURNS

686 1,871

2010

2011

2012

2013

2014

1Q2014

Return on Assets

16.2%

17.4%

18.2%

24.0%

25.8%

_{23.5% 20.1%}

Together We Build a Better Future

20 16.2%

17.4%

18.2%

20.1%

(22)

REGULAR DIVIDEND PAYMENTS

1829.5 1816.7

1962.7

2181.2

2416.6

2226.3

2000

2500

3000

Dividend (IDR Bio)

Average: 50%

SMGR DIVIDEND PAY OUT RATIO IN THE LAST 8 YEARS

887.7 1216.7

0

500 1000

1500

2007 2008 2009 2010 2011 2012 2013 2014

50%

55%

50%

_45%

40%

50%

2007

2008

2009

2010

2011

2012

2013

2014

Average: 50%

REGULAR DIVIDENDS

REGULAR DIVIDEND PAYMENTS



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

(23)

SMGR Corporate Presentation

JUNE 2015

STRATEGIC PROJECTS

(24)

SMGR LONG TERM STRATEGIC FOCUS

THE OVERALL

1. Undertake Capacity Growth

THE OVERALL

STRATEGY

COMBINES

66 CRITICAL

ELEMENTS

1. Undertake Capacity Growth

2. Manage Energy Security

3. Enhance Company Image

4. Move Closer To The Customer

5. Enable Corporate Growth

ELEMENTS

6. Manage Key Risks

SMGR LONG TERM STRATEGIC FOCUS

Undertake Capacity Growth

Manage Energy Security

Enhance Company Image

Move Closer To The Customer

Enable Corporate Growth

(25)

Strategic Project

Capacity

Investment

_{(US$ Mio)}

Construction

Start

Completion

Indarung

VI-West Sumatera

3.0 mio tons

352 Q2-2013

Q3-2016

Rembang –

Central Java

3.0 mio tons

403 Q2-2013

Q3-2016

Cement Grinding

West Java

2.0 mio tons

61.1 Q2-2015

Q3-2016

Waste Heat

Recovery Power

Generator

30.6 MW

49.3 Q4-2014

Q4-2016

Packing Plant

Pontianak

tons/year

600,000

10.0 Q1-2014

Q3-2015

Packing Plant

Balikpapan

tons/year

600,000

11.0 Q1-2014

Q2-2015

These strategic projects will ensure sustainability of

the Company’s market leadership

Balikpapan

tons/year

STRATEGIC PROJECTS

INDARUNG PROJECT

REMBANG PROJECT

MAIN STORAGE

PREHEATER AREA

MAIN STORAGE

PREHEATER AREA

MAIN SITE RAW MILL & PYRO

(26)

INSTALLED CAPACITY (Mio Ton)

17.1

18

19

20.2

25.3

30

2007 2008 2009 2010 2011 2012 2013

INSTALLED CAPACITY (Mio Ton)

38.3

41.8

InstalledCapacity

31.8

32.3

(27)

CONCLUSION: WHY SMGR?

SMGR Corporate Presentation

JUNE 2015

CONCLUSION: WHY SMGR?

(28)



Outstanding business performance

–

Leading cement player in Indonesia with over

sales volume for

cement capacity (Source: Indonesia Cement Association (“ASI”))

–

Strategically

–

As of Dec 2012, acquired Thang Long Cement Company, Vietnam by 70%

share with installed capacity 2.3 mio tons per annum

Strengths of SMGR

SMGR’s COMPARATIVE & COMPETITIVE ADVANTAGE DRIVE

BE THE MARKET LEADER IN INDONESIA

Outstanding

structure and

financial

policies

Robust cash flow

Outstanding

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

consumption

–

Concerns on environmental and Corporate Social Responsibility programs to

ensure sustainable growth.



Favourable industry outlook

–

Cement consumption pretty much in

–

Real estate and infrastructure projects and

cement

–

High barriers to entry (plant, distribution and brand investment costs)

–

Disciplined investment on supply side



Robust cash flow generation

Robust cash flow

generation



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

–

Conservative capital structure policy; low use of leverage

–

Access to capital markets for expansion initiatives



Experienced management team

–

Experienced and successful management team

Outstanding business performance

Leading cement player in Indonesia with over 43.9% market share based on

sales volume for FY2014 and approximately 43% 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

SMGR’s COMPARATIVE & COMPETITIVE ADVANTAGE DRIVES SMGR TO

BE THE MARKET LEADER IN INDONESIA

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 favorable interest rates as key

cement 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

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PART.

This presentation includes forward-looking statements, which are based on current expectations and other factors, which could cause actual results to differ materially from historical results or those

● economic, social and political conditions in Indonesia, and the impact such conditions have on construction and infrastructur

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● 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.

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economic, social and political conditions in Indonesia, and the impact such conditions have on construction and infrastructure spending in Indonesia;

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accidents, natural disasters or outbreaks of infectious diseases, such as avian influenza, in our markets;

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.

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