Together We Build a Better Future

Together We Build a Better Future

0

INDONESIA’S CEMENT INDUSTRY: NOW and THE FUTURE SMGR Corporate Presentation June 2013


1

CEMENT INDUSTRY AT A GLANCE

2 Kuala Lumpur

Singapore

1 SMGR

3

1

4

1 6

7

5 CEMENT INDUSTRY • Design Capacity • Production Capacity • Domestic Growth • Domestic Utilization •Supply  Domestic  Export  Import

: : : :

2012 60.2 mio tons 54.2 mio tons 14.5% 98%

: 54.9 mio tons : 0.2 mio tons : 0.7 mio tons2)

2013F 1)

2014F 1)

65.6 mio tons 60.7 mio tons 10.0% 100%

74.0 mio tons 66.6 mio tons 9.0% 99%

60.5 mio tons 0.5 mio tons 3.0 mio tons 3)

65.9 mio tons 0.2 mio tons 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 (2013) 1. SEMEN INDONESIA - Semen Padang : - Semen Gresik : - Semen Tonasa : 2. Semen Andalas 2) 3. Semen Baturaja 4. Indocement TP 5. Holcim Indonesia 6. Semen Bosowa 7. Semen Kupang TOTAL Together We Build a Better Future

27.7 mn ton 6.4 mn ton 14.0 mn ton 7.3 mn ton 1.6 mn ton 1.3 mn ton 20.5 mn ton 10.4 mn ton 3.6 mn ton 0.5 mn ton 2 65.6 mn ton

2

DOMESTIC DEMAND VS NATIONAL CAPACITY (2012 – 2017) ‘000 tons

Installed Capacity

Real Production

Consumption

120.000

100.000

80.000

60.000

40.000

20.000 2012

2013F

2014F

2015F

2016F

2017F

ton(‘000) 2012 Installed Capacity Real Production Consumption Surplus/deficit Domestic Utilization Export Domestic Consumption Growth

2013F

60,270 54,243 54,964 (721) 100% 200

66,420 61,106 60,460 646 99% 200

14.5%

10%

2014F 69,520 63,958 65,902 (1,943) 100% 200 9%

2015F 79,020 72,698 71,833 865 99% 200 9%

2016F 93,070 79,110 78,298 812 100% 200 9%

2017F 108,570 98,073 85,345 12,728 87% 200 9%


3

CEMENT CAPACITY COULD ALMOST DOUBLE IN THE NEXT 5 YEARS New Cement Capacity from Existing Players (2013 – 2017) No

Company

Targeted Plant Location

Capacity (mn tons)

1

Semen Indonesia

Java, Sumatera, Sulawesi

11.5

2

Indocement

Java, Kalimantan

8.8

1,560 (E)

3

Holcim

East Java

3.8

680 (E)

Brown/Greenfield

4

Bosowa

Java, Sulawesi

7.9

620

Cement Mill + Brownfield

5

Semen Andalas

Sumatera

1.6

300

Greenfield

6

Semen Baturaja

Sumatera

2.6

325

Greenfield/Brownfield

36.2

4,130

TOTAL

Investment (US$ mn)

Remarks

970

Upgrading + green/brownfield Cement Mill + brown/greenfield

New Cement Capacity from Potential Foreign and Domestic Players (By 2017) No

Company

Targeted Plant Location

1

Siam Cement (Thailand)

West Java

1.8

2

CNBM (China)

Central Java

3

Semen Merah Putih (Wilmar)

Banten

4

Anhui Conch Cement (China) - Tanjung - Tanah Grogot - Pontianak - West Papua

Various - South Kalimantan - East Kalimantan - West Kalimantan - West Papua

5

Ultratech

Wonogiri, Central Java

6

Semen Puger

East Java

7

Semen Barru

8

Semen Panasia TOTAL

Capacity (mn tons)

Pot. to be impl. (mn tons)

Investment (US$ mn)

Remarks + Local Partner

1.8

360

Greenfield, Sukabumi

2.4

0

350

Greenfield, Semen Grobogan

11.5

4.5

n.a

Greenfield (PT Cemindo Gemilang – Commercial)

13.7 3.8 3.8 3.8 2.4

3.8

2,350 400 600 600 750

Greenfield Greenfield Greenfield Greenfield Greenfield

4.5

0

827

Greenfield

0.6

0

n.a

Upgrading

South Sulawesi

3.3

0

470

Greenfield (Barru, South Sulawesi)

Central Java

2.0

2.0

240

40.3

12.1

Greenfield (Banyumas)


4,470

4

COMPARISON: CEMENT CONSUMPTION PER CAPITA 2012 kg/capita

kg 1.800 1.600 1.400 1.200 1.000 800 600 400

223

200 0

a di In

s ne pi

a si ne

p ili Ph

do In

nd la ai Th

re

a si ay al

po

m na et Vi

M

a ng Si

a in Ch

Source: Deutsche, Indonesia Cement Association


5

INDONESIA’S SOLID ECONOMIC AND DOMESTIC CEMENT CONSUMPTION GROWTH (mio tons)

60.0

20.0%

Cement growth % (RHS)

17.7%

GDP growth % (RHS)

Domestic consumption (LHS)

54.9

50.0 48.0 40.0

40.8 38.1 9.7%

30.0

30.2 27.2 20.0

10.0

14.5%

11.5%

5.8%

5.8% 4.7%

Growth 5.6% 5.1% :

1.1%

2002

2003

34.2

10.0% 7.2%

4.2%

5.4% Growth :

6.10%

6.3% Growth : 6.1% 6.6%

4.2%

9.7%

2004

2005

2006

Growth 4.60% :

1.8%

6.0%

6.50% Growth : 6.80%

6.6%

22.9 Growth : 6.00% (A)

19.4%

2.5%

1.8%

1.1%

0.0

32.1

27.5

Growth :

4.4%

31.5

39.1

0.0% 2007

2008

2009

2010

2011

2012

5M2013

Source: Indonesian Cement Association & BPS Statistic


6

SO FAR INFRASTRUCTURE EXPANSION RELATIVELY SLOW Bag and Bulk cement consumption (million tons) 44.1

45 40

39.2

35

32.2

30 25

22.7

21.0

20

23.7

23.7

25.2

25.5

26.9

32.8

34.2

28.2

20.0 18.1

18.2

16.9

15 10.8 8.8

10 6.5

5 1.0

1.9

2.3

3.0

3.5

3.8

6.0

5.0

5.1

6.0

5.9

6.2

6.6 4.7

0 1997

1999

2001

2003

2005

Bagged Cement

2007

2009

2011

5M2013

Bulk Cement

Source: Indonesia Cement Association and the Company’s data


7

DOMESTIC MARKET CONSUMPTION (2012)

Bulk ± 20%

Bag

± 80%

•

Ready-mix (infrastructure): ± 60%

•

Fabricator (pre-cast, fiber cement, cement based industry): ± 35%

•

Projects (mortar, render): ± 5%

•

Housing: ± 90%

•

Cement based industry: ± 10%

Key Drivers of Domestic cement demand: Source: Internal Research

Retail (residential) sector is the largest consumer of cement in Indonesia

• National Economic Growth • Favorable Interest Rate Environment • Infrastructure Expansion

• Per Capita Consumption increase from current low levels Together We Build a Better Future

8

MARKET UPDATE SMGR Corporate Presentation June 2013


9

MARKET BY GEOGRAPHY Population Distribution (2012)

Cement Distribution (5M 2013)

2



4

7.9% 7.1%

3 6

SP

1 SG



ST

5.9

2.4%

Papua

5.5%

1.5%

Bali & N T Kalimantan

Sumatera

5

5.8%

21.5%

8.4%

Sumatera Java 21.3% 57.5.%

Sulawesi

Java

55.2% Domestic Market Share (5M-2013) REGION

MARKET SHARE (%)

SMGR

INTP

SMCB

1. JAVA

39.1

40.5

18.4

2.0

-

2. SUMATERA

45.5

13.0

13.8

3.0

16.0

3. SULAWESI

64.1

14.8

0.9

20.0

4. KALIMANTAN

51.0

28.6

11.3

5. NUSA TENGGR.

41.9

31.8

6. EASTERN IND.

53.6

43.7

TOTAL INDONESIA

BSWA ANDLS BTRJA

KPG

-

-

9.0

-

-

-

-

9.0

-

-

-

3.7

16.5

-

-

6.0

24.3

0.8

21.1

-

-

30.9

14.3

5.3

3.4

1.9

0.3


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MARKET UPDATE - Cement Consumption 5M-2013 5M 2013 – Domestic Consumption (mio tons)

5M 2013 - SMGR Sales Volume (million tons) DESCRIPTION DOMESTIC Gresik Padang Tonasa EXPORT GRAND TOTAL

5M-13

5M-12

10,017,522

8,512,926

17.7

4,259,574

21.8

2,582,087

8.3

1,671,265

21.5

89,907

29,246

207.4

10,107,429

8,542,172

18.3

5,190,159

2,796,549 2,030,813

CHANGE (%)

AREA

5M 2013

5M 2012

CHANGE (%)

Jakarta

2,177,464

2,033,529

7.1

Banten

1,382,750

1,256,732

10.0

West Java

3,288,320

3,038,365

8.2

Central Java

2,578,205

2,256,123

14.3

368,214

310,430

18.6

2,869,734

2,647,113

8.4

12,664,688

11,542,291

9.7

Sumatera

4,932,070

4,896,337

0.7

Kalimantan

1,803,045

1,678,952

7.4

Sulawesi

1,622,599

1,617,705

0.3

Nusa Tenggara

1,355,331

1,154,576

17.4

556,752

512,975

8.5

22,934,485

21,402,837

7.2

Export Cement

85,240

43,508

95.9

Export Clinker

21,467

100,416

(78.6)

106,707

143,924

(25.9)

23,041,192

21,546,761

6.9

Yogyakarta East Java Total Java

Maluku & Papua TOTAL INDONESIA

Industry Sales Type (mio tons) 5M-13

5M-12

YoY Change

Bag

18.2 (79.5%)

17.4 (81.7%)

4.6%

Bulk

4.7 (20.5%)

3.9 (18.3%)

20.5%

Total Export GRAND TOTAL

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


11

COMPANY PROFILE SMGR Corporate Presentation June 2013


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SMGR IS THE #1 CEMENT COMPANY IN INDONESIA BRIEF HISTORY  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:

 1995  1998  2006  2010  2011  2012

● Government of Republic of Indonesia: 73% ● Public: 27% : Acquisition of PT Semen Padang (Persero) and PT Semen Tonasa (Persero) : Cemex became a strategic partner, Market Cap.: IDR4.9tn : Blue Valley Holdings bought Cemex’s 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 : Total installed capacity of 20.00mm tons, Market Cap per June 29, 2012: IDR67.0tn : Acquisition of Thang Long Cement Vietnam, Total installed capacity of 2.3mm tons, Market Cap Dec 19th, 2012: IDR91.9tn

SMGR CAPACITY BUILD-OUT (MM TONS) 30.0 Post-consolidated capacity

Installed capacity: 25.3 mio tons (2012) including TLCC

25.0 20.0 15.0 10.0 5.0

Pre-consolidated capacity

_

_

_

_

_

_

19 57 19 70 19 80 19 8 19 4 8 19 5 86 19 90 19 9 19 5 9 19 7 98 20 0 20 6 0 20 7 0 20 8 0 20 9 1 20 0 1 20 1 12

0.0


13

FOCUSES IN CORE BUSINESS OWNERSHIP STRUCTURE1

The Government of the Republic of Indonesia 51.01%

Public 48.99%

PT Semen Indonesia (Persero) Tbk. 99.99%

PT Semen Gresik

PT Semen Padang

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%

99.99%

70.00%

PT Semen Tonasa

Thang Long Cement, VN

Name Activities % Ownership Name Activities % Ownership 1. UTSG Limestone & Clay Mining 55.00% 1. UTSG Limestone & Clay Mining 55.00% 2. IKSG Packaging Paper 60.00% 2. IKSG Cement Packaging 60.00% 3. KIG Industrial Estate 65.00% 3. KIG Industrial Estate 65.00% 4. Swadaya Graha Conyractor & Machine Fabricator 25.00% 4. Swadaya Gra Steel fabrication, contractor 25.00% 5. Varia Usaha Transport and general trading 24.90% 5. Varia Usaha Transport and general trading 24.90% 6. Eternit Gresik Building materials 17.60% 6. Eternit Gresik Building materials 17.60% 7. SGG Energy Prima Coal Mining and Trading 97.00% 7. SGG Prima Coal Trading Coal 99.99% 8. SGG Prima Beton Ready Mix Concrete 99.99% 8. SGG Prima Beton Ready Mix Concrete 99.99%

¹ As of Dec 18, 2012


14

SMGR’s PRODUCTION FACILITIES ARE WELL SUPPORTED BY STRATEGICALLY LOCATED MARKETING AND DISTRIBUTION FACILITIES Aceh

Kuala Lumpur Belawan

Singapore

Bitung Batam Pontianak

Palu

Samarinda

Kalimantan

Teluk Bayur

Sorong

Sulawesi

Maluku

Sumatera Banjarmasin

Installed Cap.: Jakarta

Tanjung Priok

Tuban

Java

Packing Plant Port Warehouse

Ambon

Papua

Ciwandan

6.4 mn tons

Cement Plant

Biringkasi

West Java Serang Tangerang Bogor Cibitung Bandung Tasik Malaya Cirebon Narogong

Central Java Tegal Purwokerto Kudus Magelang Solo/Palur Alas Tuwo Mojopahit Sayung

Gresik

Pelabuhan Tuban

Surabaya

Bali

Makassar

Lombok

Installed Cap.: 7.3 mn tons

Pelabuhan Gresik DI Yogyakarta LempuyanganEast Java Janti Margomulyo Tanjung Wangi Bangkalan Swabina

Bali Tabanan Denpasar Singarajan

Installed Cap.: 14.0 mn tons

 Total production 2012: 22.8 mn tons and targetted 2013 domestic: 26.0 mn tons and TLCC: 2.0 mn tons  Operate 8 special sea ports: Padang, Tuban, Gresik, Biringkassi, Dumai, Ciwandan, Banyuwangi and Sorong  20 large packing plants: Aceh, Belawan, Padang, Dumai, Batam, Ciwandan (2 Units), Tanjung Priok, Tuban,

Gresik, Banyuwangi, Banjarmasin, Samarinda, Celukan Bawang, Tonasa, Makassar, Palu, Bitung, Ambon and Sorong  Supported by warehouses in all areas of Java, Bali, Sumatra, Kalimantan, Sulawesi and Papua  Nationwide distribution networks

15

FINANCIAL UPDATE SMGR Corporate Presentation June 2013


16

FINANCIAL SUMMARY: FY2012 RESULTS Description (Rp bn)

FY 2011

Net Revenue

16,379

FY 2012 19,598

Change (%) 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

662

817

23.5

EPS (Rp)

EBITDA (Rp billion) 6.869

7.000 6.000 5.000 4.000 3.000 2.000 1.000 0

3,867

4,773

2009

2010

4,970

2,849 2,234

2007

2008

2011

2012

EBITDA Margin (%) FY07

FY08

FY09

FY10

FY11

FY12

29.7

31.7

33.2

34.6

33.0

35.0

NET INCOME (Rp billion) 4847

5.000 2,524

4.000 3.000

3,326

3,633

1,775 1,296

2.000 1.000 0 2007

2008

2009

2010

2011

2012

NET INCOME Margin (%) FY07

FY08

FY09

FY10

FY11

FY12

18.5

20.7

23.1

25.3

24.0

24.7


17

FINANCIAL HIGHLIGHT – 1Q 2013 Description (Rp bn)

1Q 2012

1Q 2013

Change (%)

Ratio (%)

Formula

1Q 2012

1Q 2013

32.9

33.6

258.3

24.7

Net Revenue

4.284

5,584

29.4

Ebitda margin

Ebitda / Revenue

Cost of Revenue

2,362

3,058

29.5

Interest coverage (x)

Ebitda / Interest expense

Gross Profit

1,922

2,484

29.3

Cost ratio

[COGS + Opex] / Revenue

70,7

71,2

669

879

31.6

Total debt to equity *)

Total debt / Total equity

48.5

44.0

Operating Income

1,254

1,605

28.0

Total debt to asset *)

Total debt / Total asset

29,7

31.7

EBITDA

1,410

1,862

32.0

*) Total debt calculated from interest bearing debt

Net Income

1,011

1,236

22.3

170

208

22.3

Operating Expenses

EPS (Rp)


18

STRONG BALANCE SHEET AND RETURNS Cash balance (IDR bn)

Total debt (IDR bn)

* Include short term investment

3,850 3,846

2008

5,283

2009

3,905

3,682

2010

2011

1,871

3317

2012

Debt/EBITDA

686

251

199

2008

2009

2010

2011

2012

Return on Assets

2,00x

0.56x

24.0%

2012

2008

25.8%

23.5%

20.1%

18.2%

2010

2011

2012

0,35x 0,06x

0,04x

2008

2009

0,14x 2010

2011

2009

The projected adjusted debt/EBITDA of 2.0x and operating margin below 20-%23% to maintain rating level from Moody’s Investors Service. Together We Build a Better Future

19

REGULAR DIVIDEND PAYMENTS WITH ATTRACTIVE YIELD Total Dividen Pay Out 2500,0

1829,5 1816,7

2000,0 1500,0

1000,0

1962,7

2181,3

1261,7

REGULAR DIVIDENDS

887,7

500,0 0,0 2007

2008

2009

2010

2011

2012

total dividen (IDR billion) SMGR DIVIDEND PAY OUT RATIO IN THE LAST 6 YEARS Average: 50%

50%

2007

50%

2008

55%

2009

50%

2010

50%

2011

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 • Shareholder profile

45%

2012 Together We Build a Better Future

20

STRATEGIC PROJECTS SMGR Corporate Presentation June 2013


21

SMGR LONG TERM STRATEGIC FOCUS

THE OVERALL STRATEGY COMBINES

6 CRITICAL ELEMENTS

1. Undertake Capacity Growth

2. Manage Energy Security 3. Enhance Company Image

SMGR

4. Move Closer To The Customer

5. Enable Corporate Growth 6. Manage Key Risks


22

CEMENT PLANTS PROJECTS

Capacity Investment (mn tons) (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

Tuban

New Plants Location

Tuban’s view

Preheater Tuban IV

Tonasa

Pyroprocessing Tonasa V

Raw Mill Dept. Tonasa V

Tonasa

These strategic projects will ensure sustainability of the Company’s market leadership

ESP Power Plant

Jetty Extension Area


23

INSTALLED CAPACITY (Mio Ton)

Installed Capacity 39,3 25,3 17,1

18

19

19

30

31,8

40,8

33,3

20,2

2007 2008 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F


24

SEMEN INDONESIA POTENTIAL SYNERGIES

Potential synergies in: - Investment - Production, - Marketing, - Procurement,

- etc.

1

3 2 SMGR's existing plant locations Packing plants Warehouses Sea port TLCC – Existing plants TLCC – Expansion projects Together We Build a Better Future

25

SGG HOLISTIC TRANSFORMATION Thn

1991

2003-5

1995

Independent Company

Post-Acquisition

Consolidated and Synergy

2011

Business Expansion

SG

GO PUBLIC 1 IPO (SG became the first state-owned Enterprise to go public on IDX). Operating Company

2

The process of consolidation of SP, SG and ST through the acquisition method.

Operating Holding

Background changes Company Name: PT Semen Gresik (Persero). Tbk

3

• Implementation of Synergy & Practice GCG program consistently.

Functional Holding

4 Business Expansion

Strategic Holding

PT Semen Indonesia (Persero) Tbk.

1. Creates Strategic Holding, to Enhance Competitiveness and to Increase Bargaining Power 2. Separates and Optimize the Role or Function of Holding and Operating Co. 3. Tax Considerations, in order to implement the Best Form of Holding 4. Support the Future Company Vision 5. Faces Challenging Environment and Business Competition 6. Optimize Performance through increased Consolidation and Synergy Together We Build a Better Future

26

CONCLUSION: WHY SMGR? SMGR Corporate Presentation June 2013


27

SMGR’s COMPARATIVE & COMPETITIVE ADVANTAGE DRIVES SMGR TO BE THE MARKET LEADER IN INDONESIA  Outstanding business performance

Strengths of SMGR

Experienced management team

Outstanding business performance

Favorable industry outlook

Conservative capital structure and financial policies

Outstanding performance

Robust cash flow generation

– Leading cement player in Indonesia with over 43.% market share based on sales volume for 4M-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 Together We Build a Better Future

28

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 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.

Main Office: Semen Gresik 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


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