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Together We Build a Better Future

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Together We Build a Better Future
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INDONESIAS CEMENT INDUSTRY: NOW and THE FUTURE
SMGR Corporate Presentation
OCTOBER 2013
Together We Build a Better Future
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1. SEMEN INDONESIA 27.7 mn ton
- Semen Padang : 6.4 mn ton
- Semen Gresik : 14.0 mn ton
- Semen Tonasa : 7.3 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 10.4 mn ton
6. Semen Bosowa 3.6 mn ton
7. Semen Kupang

0.5 mn ton
TOTAL 65.6 mn ton

Design Capacity : 60.2 mio tons 65.6 mio tons 67.3 mio tons
Production Capacity : 54.2 mio tons 59.0 mio tons 60.5 mio tons
Domestic Growth : 14.5% 6.0% 6.0%
Domestic Utilization : 100% 99% 100%
Supply
Domestic : 54.9 mio tons 59.3 mio tons 60.5 mio tons
Export : 0.2 mio tons 0.2 mio tons 0.2 mio tons
Import : 0.7 mio tons
2)
0.5 mio tons
3)
1.0 mio tons
3)




1) Based on the Companys forecast
2) Imported cement by PT Semen Andalas (1.0 mio ton) and clinker by Bosawa and Kupang
3) Imported cement & clinker
Singapore
Kuala
Lumpur
SMGR

2 2
1 1
3 3
4 4
5 5
1
1
6 6
7 7
DOMESTIC CAPACITY (2013)
CEMENT INDUSTRY 2012 2013F
1)
2014F
1)
CEMENT INDUSTRY AT A GLANCE
2
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000 tons
ton(000)
2012 2013F 2014F 2015F 2016F 2017F
Installed Capacity 60,270 65,600 67,300 76,500 87,700 92,200
Real Production 54,243 59,040 60,570 68,850 74,545 78,370
Consumption 54,964 58,262 61,758 65,463 69,391 73,554
Surplus/deficit -721 778 -1,188 3,387 5,154 4,816
Domestic Utilization 100% 99% 100% 95% 93% 94%
Export 200 200 200 200 200 200
Domestic
Consumption Growth 14.50% 6% 6% 6% 6% 6%
3
DOMESTIC DEMAND VS NATIONAL CAPACITY (2012 2017)

0
20.000
40.000
60.000
80.000
100.000
2012 2013F 2014F 2015F 2016F 2017F
Design Capacity Real Production Consumption Cement
Together We Build a Better Future
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Source: Deutsche, Indonesia Cement Association
223
kg kg
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
C
h
i
n
a
S
i
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a
p
o
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e
M
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a
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T
h
a
i
l
a
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o
n
e
s
i
a
P
h
i
l
i
p
p
i
n
e
s
I
n
d
i
a
kg/capita
COMPARISON: CEMENT CONSUMPTION PER CAPITA 2012
Together We Build a Better Future
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
41.5
39.1
27.2
27.5
30.2
31.5
32.1
34.2
38.1
6.10%
5.90%
6.80%
5.6%
4.7%
5.1%
5.4%
4.4%
6.3%
6.1%
4.60%
6.50%
5.3%
14.5%
6.0%
11.5%
4.2%
9.7%
2.5%
6.6%
1.8%
1.1%
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 9M2013
0.0%
10.0%
20.0%
Cement growth % (RHS)
(A) (A)
5
INDONESIAS SOLID ECONOMIC AND DOMESTIC CEMENT CONSUMPTION
GROWTH
Together We Build a Better Future
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
34.2
6.6
39.2
8.8
44.1
10.8
32.0
8.6
0
5
10
15
20
25
30
35
40
45
1997 1999 2001 2003 2005 2007 2009 2011 9M2013
Bagged Cement Bulk Cement
Bag and Bulk cement consumption (million tons)
6
Source: Indonesia Cement Association and the Companys data
SO FAR INFRASTRUCTURE EXPANSION RELATIVELY SLOW
Together We Build a Better Future
Retail (residential) sector is the largest
consumer of cement in Indonesia
7
Bag
80%
Bulk
20%
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%
Ready-mix (infrastructure): 60%
Fabricator (pre-cast, fiber cement, cement based industry): 35%
Projects (mortar, render): 5%
Housing: 90%
Cement based industry: 10%
Housing: 90%
Cement based industry: 10%


Source: Internal Research
DOMESTIC MARKET CONSUMPTION (2012)
Together We Build a Better Future
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MARKET UPDATE
SMGR Corporate Presentation
OCTOBER 2013
Together We Build a Better Future
Papua
Bali & N T
Sulawesi

Kalimantan
Population Distribution (2012) Population Distribution (2012)
Sumatera
21.3%
Java
57.5.%
8.4%
5.8%
5.5%
1.5%
9
REGION
MARKET SHARE (%)
SMGR INTP SMCB BSWA ANDLS BTRJA KPG
1. JAVA 39.3 39.8 18.8 2.0 - - -
2. SUMATERA 45.5 12.6 13.6 3.0 16.0 10.0 -
3. KALIMANTAN 52.1 27.9 10.5 9.0 - - -
4. SULAWESI 64.4 13.0 0.9 22.0 - - -
5. NUSA TENGGR. 41.8 32.9 3.6 15.7 - - 6.0
6. EASTERN IND. 54.8 21.9 1.0 22.3 - -
TOTAL
INDONESIA
43.8 30.5 14.5 5.4 3.3 2.0 0.4



SG
SP
ST
1
2
3
4
5
6
21.1%
7.6%
7.2%
6.0
2.1%
Java
56.1%
Sumatera
Cement Distribution (9M 2013) Cement Distribution (9M 2013)
Domestic Market Share (9M-2013)
MARKET BY GEOGRAPHY
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*) Source: Indonesia Cement Association, un-audited figures *) Source: Indonesia Cement Association, un-audited figures
10
AREA 9M 2013 9M 2012 CHANGE (%)
Jakarta 3,884,131 3,652,575 6.3
Banten 2,499,336 2,336,819 7.0
West Java 6,084,743 5,780,596 5.3
Central Java 4,893,529 4,436,791 10.3
Yogyakarta 700,955 592,643 18.3
East Java 5,245,242 4,968,752 5.6
Total Java 23,307,937 21,768,175 7.1
Sumatera 8,765,522 8,682,181 1.0
Kalimantan 3,144,812 2,936,593 7.1
Sulawesi 2,989,298 2,894,085 3.3
Nusa Tenggara 2,493,520 2,295,724 8.6
Maluku & Papua 878,039 891,061 (1.5)
TOTAL
INDONESIA
41,579,127 39,467,820 5.3
Export Cement 106,240 74,736 42.2
Export Clinker 396,934 100,416 295.3
Total Export 503,174 175,152 187.3
GRAND TOTAL 42,082,301 39,642,972 6.2
9M 2013 Domestic Consumption (mio tons)
DESCRIPTION 9M-13 9M-12
CHANGE
(%)
DOMESTIC 18,231,231 15,956,147 14.3
Semen Indonesia 9,501,700 8,083,482 17.5
Semen Padang 5,002,151 4,730,216 5.7
Semen Tonasa 3,727,379 3,142,449 18.6
EXPORT 268,928 45,946 485.3
GRAND TOTAL 18,500,159 16,002,093 15.6
Industry Sales Type (mio tons)
9M-13 9M-12 YoY Change
Bag 32.9 (79.1%) 32.0 (81.1%) 2.8%
Bulk 8.6 (20.9%) 7.4 (18.9%) 16.9%
9M 2013 - SMGR Sales Volume (million tons)
MARKET UPDATE - Cement Consumption 9M-2013

SMGR Sales Type (mio tons)
9M-13 9M-12 YoY Change
Bag 13.9 (76.7%) 12.6 (79.4%) 10.4%
Bulk 4.2 (23.3%) 3.2 (20.6%) 29.2%
Together We Build a Better Future
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COMPANY PROFILE
SMGR Corporate Presentation
OCTOBER 2013
Together We Build a Better Future
12
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 Cemexs 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 19
th
, 2012: IDR91.9tn
BRIEF HISTORY BRIEF HISTORY
0.0
5.0
10.0
15.0
20.0
25.0
30.0
1
9
5
7
-
1
9
7
0
-
1
9
8
0
-
1
9
8
4
1
9
8
5
1
9
8
6
-
1
9
9
0
-
1
9
9
5
1
9
9
7
1
9
9
8
-
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
SMGR CAPACITY BUILD-OUT (MM TONS) SMGR CAPACITY BUILD-OUT (MM TONS)
Pre-consolidated capacity Pre-consolidated capacity
Post-consolidated capacity
Installed capacity: 25.3 mio tons (2012)
including TLCC
_ _ _ _ _ _
SMGR IS THE #1 CEMENT COMPANY IN INDONESIA
Together We Build a Better Future
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Public The Government of the Republic of Indonesia
PT Semen Indonesia (Persero) Tbk.
PT Semen Padang PT Semen Tonasa
OWNERSHIP STRUCTURE
1
OWNERSHIP STRUCTURE
1
As of Dec 18, 2012
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%
PT Semen Gresik
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 Conyractor & 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
Competitiveness of Semen Indonesia
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 21 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
Together We Build a Better Future
15
FINANCIAL UPDATE
SMGR Corporate Presentation
OCTOBER 2013
Together We Build a Better Future
16
EBITDA (Rp billion)
NET INCOME (Rp billion) NET INCOME (Rp billion)
EBITDA Margin (%) EBITDA Margin (%)
FY07 FY08 FY09 FY10 FY11 FY12
29.7 31.7 33.2 34.6 33.0 35.0
NET INCOME Margin (%) 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
EBITDA
2)
5,402 6,869 27.2
Net Income 3,925 4,847 23.5
EPS (Rp) 662 817 23.5
FINANCIAL SUMMARY: FY2012 RESULTS
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
4,970
4,773
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
Together We Build a Better Future
17
FINANCIAL HIGHLIGHT 1H2013
Description
(Rp bn)
1H2012 1H2013
Change
(%)
Revenue 8,658 11,422 31.9
Cost of Revenue 4,696 6,275 33.6
Gross Profit 3,961 5,146 29.9
Operating Expenses 1,318 1,779 35.0
Operating Income 2,644 3,366 27.3
EBITDA 2,893 3,858 33.3
Net Income 2,103 2,584 22.9
EPS (full amount) 355 436 22.9
Ratio (%) Formula 1H2012 1H2013
Ebitda Margin Ebitda / Revenue 33.4 33.8
Interest Coverage (x) Ebitda / Interest Expense 237.0 24.9
Total Debt to Equity
a)
Total Debt / Total Equity 15.8 22.2
Total Debt to Asset
a)
Total Debt / Total Asset 10.4 15.5
a) Total debt calculated from interest bearing debt

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Cash balance (IDR bn) Total debt (IDR bn)
3,905
3317
3,682 3,846
5,283
2008 2009 2010 2011 2012
3,850
251 199
686
1,871
2008 2009 2010 2011 2012
* 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 Moodys Investors
Service.
18.2%
24.0%
25.8%
23.5%
20.1%
2008 2009 2010 2011 2012
18
STRONG BALANCE SHEET AND RETURNS
Together We Build a Better Future
19
50% 50%
55%
50%
45%
50%
2007 2008 2009 2010 2011 2012
Average: 50%
SMGR DIVIDEND PAY OUT RATIO IN THE LAST 6 YEARS

SMGR DIVIDEND PAY OUT RATIO IN THE LAST 6 YEARS

REGULAR DIVIDENDS 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
1261,7
1829,5 1816,7
1962,7
2181,3
0,0
500,0
1000,0
1500,0
2000,0
2500,0
2007 2008 2009 2010 2011 2012
Total Dividen Pay Out
total dividen (IDR billion)
Together We Build a Better Future
20
STRATEGIC PROJECTS
SMGR Corporate Presentation
OCTOBER 2013
Together We Build a Better Future
21
SMGR SMGR
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

6. Manage Key Risks

SMGR LONG TERM STRATEGIC FOCUS
Together We Build a Better Future
22
Tubans view
Pyroprocessing Tonasa V
Jetty Extension Area
T
u
b
a
n

T
u
b
a
n

T
o
n
a
s
a

T
o
n
a
s
a

T
o
n
a
s
a

T
o
n
a
s
a

ESP Power Plant
These strategic projects will ensure sustainability of
the Companys 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

CEMENT PLANTS PROJECTS
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23
17.1
18
19 19
20.2
25.3
30
31.8
33.3
39.3
40.8
2007 2008 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F
Installed Capacity
INSTALLED CAPACITY (Mio Ton)
Together We Build a Better Future
CONCLUSION: WHY SMGR?
SMGR Corporate Presentation
OCTOBER 2013
24
Together We Build a Better Future
25
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 8M-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
SMGRs COMPARATIVE & COMPETITIVE ADVANTAGE DRIVES SMGR TO BE
THE MARKET LEADER IN INDONESIA
Together We Build a Better Future
26 26
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, 18
th
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
THANK YOU 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.