striving to maximize value

Striving to maximize value

Leading Towards the FutureLeading Towards the FutureLeading Towards the FutureMarch 2008March 2008

Striving to maximize value 1

AGENDA

I. Indonesia Cement Highlights

II. Corporate Profile

III. Financial Performance

IV. Strategic Initiatives

V. Appendix


• Total Installed National Cap.:45.07 mn tons/year (EoY 07)

• Domestic utilization rate per Dec. 2007: 75.83%

Singapore

Kuala Lumpur

SGG*)

11

2233

44

55

66

77

88

99

Semen Andalas IndonesiaLhok Nga, Nanggroe Aceh D.Cap. 1.4 mn tons (under plant reconstruction)

Indocement Tunggal PerkasaJakartaCap. 15.65 mn tons

Semen TonasaPangkep, South SulawesiCap. 3.5 mn tons

Semen PadangIndarung, West SumateraCap. 5.4 mn tons

Holcim IndonesiaJakartaCap. 8.7 mn tons

Semen Bosowa MarosMaros, South SulawesiCap. 1.8 mn tons

Semen BaturajaPalembang, South SumateraCap. 1.25 mn tons

Semen GresikGresik/Tuban, East JavaCap. 8.2 mn tons

Semen KupangKupang, East Nusa TenggaraCap. 0.57 mn tons

1.1.

2.2.

3.3.

4.4.

5.5.

6.6.

7.7.

8.8.

9.9.

INDUSTRY STRUCTURE AND PLANTS LOCATION

*) Semen Gresik Group

*) Semen Gresik Group


AGENDA





V. Appendix


SGG IS THE #1 CEMENT COMPANY IN INDONESIA

1999

2005

2007

2006

1998

1995

1991

1957 Founded August 1957 by the first

President of the Republic of Indonesia

Capacity: 250,000 tons per annum (“tpa”)

July 1991, Initial Public Offering—listed on the Jakarta Stock Exchange and Surabaya Stock Exchange

Government of Republic of Indonesia: 73%, Public: 27%

Capacity: 1.8mn tpa

EoY market cap: Rp 0.63tn

Cemex S.A. de C.V. ("Cemex") became a strategic partner by buying a 14% stake

GoI:51%, Public: 35%, Cemex: 14%

Capacity: 17.3mn tpa


September 1999, Cemex upsized its stake to 26%

GoI: 51%, Public: 23%, Cemex: 26%



GoI: 51%, Public: 23%, Cemex: 26%



July 2006, Blue Valley Holdings PTE Ltd. (“Blue Valley”) bought Cemex’s24.9% stake in SGG

GoI: 51%, Public: 24%, Blue Valley: 25%



GoI: 51%, Public: 24%, Blue Valley: 25%



Rights Issue

Acquisition of Semen Padang and Semen Tonasa

GoI: 65%, Public: 35%

Capacity: 8.5mn tpa



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 2007: 17.1 mn tons

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

TelukBayur

Sumatera

Kalimantan

SulawesiMaluku

Papua

LombokBaliJava

Batam

Ciwandan

Tanjung Priok Jakarta

Samarinda

Banjarmasin

Palu

Bitung

Ambon

Makassar

Biringkasi

BaliTabananDenpasar

Singarajan

DI YogyakartaLempuyangan

Janti

Central JavaTegal

PurwokertoKudus

MagelangSolo/PalurAlas TuwoMojopahit

Sayung

West JavaSerang

TangerangBogor

CibitungBandung

Tasik MalayaCirebon

Narogong

Belawan

Singapore

Kuala Lumpur

Tuban

Surabaya

Cement Plant

Packing Plant

Port

Warehouse

East JavaMargomulyo

Tanjung WangiBangkalanSwabina

Aleh

Pelabuhan Tuban

Pelabuhan Gresik

Installed Cap.:5.4 mn tons




Others

8.1%

Player 2

19.3%

Player 1

34.7%

Semen

Gresik

18.2%

Semen

Padang

11.9%

Semen

Tonasa

7.8%

CAPACITY SHARE — 2007CAPACITY SHARE — 2007

Semen

Tonasa

8.6%

Others

10.2%

Semen

Padang

14.2%

Semen

Gresik

21.6%

Player 1

30.9%

Player 2

14.6%

Total = 45.07 mn tons

SGGTotal 37.9%

SGGTotal 44.4%

MARKET LEADER IN TERMS OF REVENUE AND CAPACITY SHARE

Highest revenue/available capacity among peers Leading market share for the past several years

Total = 34.2 mn tons

DOMESTIC MARKET SHARE — 2007DOMESTIC MARKET SHARE — 2007

Source: Research reports, management plan


SEMEN GRESIK’S STOCK PRICE HAS CONTINUED TO PERFORM

Volume (per 10,000)Price (Rp/share)

JCI (Jakarta Composite Index) is rebased to Semen Gresik share priceNote: US$1= IDR 9,393 as per Dec. 28, 2007; Semen Gresik prices adjusted to stock split

Key market data IDR USD

Current share price 5,600 0.60

52 week high 6,200 0.66

52 week low 3,500 0.37

Market cap (EoY 07) 33,217bn 3,536mm

Stock SplitStock Split

US Subprime crisis

US Subprime crisis

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Jan-07 Feb-07 Mar-07 May-07 Jun-07 Jul-07 Sep-07 Oct-07 Dec-07 Jan-08

0

500

1,000

1,500

2,000

2,500

3,000

3,500

SMGR JCI

Feb-08Feb-08


AGENDA





V. Appendix


FINANCIAL HIGHLIGHTS

19%

7%

47%

20%

27%

21%

15%

CAGR

6,627

8,515

1,775

2,855

2,397

4,001

9,601

2007

5,500

7,496

1,296

2,234

1,779

3,328

8,728

2006

20.56,6275,5004,4673,6423,334Total Equity

13.68,5157,4967,2986,6666,559Total assets

37.01,7751,2961,002509373Net profit

27.82,8552,2341,9991,4121,386EBITDA

34.72,3971,7791,539965929Operating profit

20.24,0013,3282,8922,0611,893Gross Profit

10.09,6018,7287,5326,0685,450Revenue

Change (%)20072006200520042003(Rp billions)

KEY FINANCIAL HIGHLIGHTS


OVER THE YEARS, SGG HAS EXPERIENCED ROBUST EARNINGS GROWTH …OVER THE YEARS, SGG HAS EXPERIENCED ROBUST EARNINGS GROWTH …

5,172 5,4506,068

7,5328,728

9,601

2002 2003 2004 2005 2006 2007

• Net Revenues (Bn Rp)

2,397

1,7791,539

980929

749

2002 2003 2004 2005 2006 2007

• Operating Income (Bn Rp)

2,855

2,2341,999

1,4121,386

1,186

2002 2003 2004 2005 2006 2007

• EBITDA (Bn Rp)

1,775

1,296

1,002

509

373

151

2002 2003 2004 2005 2006 2007

• Net Income (Bn Rp)

26.7923.5622.43

13.97

11.17

4.86

2002 2003 2004 2005 2006 2007

• Return on Equity (%)

27.0934.80

61.80

81.30

95.00

117.20

2002 2003 2004 2005 2006 2007

• Debt to Equity Ratio (%)


….RESULTING IN RISING PROFITS AND IMPROVING MARGINS

2,892

3,328

1,9991,893

2,061

4,001

2,855

2,234

1,4121,386

373509

1,296

1,775

1,002

-250

500

1,250

2,000

2,750

3,500

4,250

2003 2004 2005 2006 2007

Gross profit EBITDA Net income

PROFITABILITY TREND (Rp Bn)PROFITABILITY TREND (Rp Bn)

CAGR(03-07)

20%

21%

47%

PROFIT MARGINS—LAST 5 YEARSPROFIT MARGINS—LAST 5 YEARS

41.7%38.1%

38.4%34.0%

34.7%

25.1%

23.0%26.3%

25.5% 29.7%

13.3%

14.8%18.5%

8.4%

6.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

2003 2004 2005 2006 2007

Gross margin EBITDA margin Net margin


Source: I/B/E/S mean estimatesNote: Actual numbers are reported number on the year of announcement

SUSTAINABLE EPS GROWTH VS. ANALYST ESTIMATESSUSTAINABLE EPS GROWTH VS. ANALYST ESTIMATES

SGG HAS BEEN ABLE TO OUTPERFORM MARKET EXPECTATIONS

ACTUAL EPS CAGR (2002-2006) 48%

590514

743

1,206

2,147

255

628

858

1,689

2,184

0

500

1,000

1,500

2,000

2,500

2002 2003 2004 2005 2006

Consensus analyst EPS forecasts Actual EPS(IDR BN)


AGENDA

I. Indonesian Cement Highlights




V. Appendix


SGG 5-YEAR CORPORATE STRATEGY

ProductProduct development Product Diversification

Capacity & Energy Management

Debottlenecking / Optimization

New Plant

Power Plant

New Plant

Power Plant

Debottlenecking / Optimization

Organization Capital Corporate restructuring Subsidiaries & Affiliates restructuring

Effective holding

Information Capital Information & Communication Technology System Management

Industry landscape scenario

Brand equity strengthening

Customer value proposition

Competitive advantage

2006 2007 2008 2009 2010 Onwards

Consolidating leadership position

Efficiency

Synergy

Human Capital Human Resource Competencies

2011

Intense competition (Potential) New entrants

2012

Brand

Initiatives

Optimization period


Revenue management

Cost management

Capacity management

Increasingcompetitive advantage

Maintain market share

Increase operating margin

Market share optimization Margin optimization

Raw material Maintenance costs Yield

improvement Energy supply

alternatives

Raw material Maintenance

costs Yield/utilization

Maximize utilization

Capacity optimization

Capacity expansion

Corporate restructuring Human resource competencies Management Information Systems (MIS)

Profitability

And

Sustainable growth

ACTIVITYACTIVITY NEAR TERM INITIATIVESNEAR TERM INITIATIVES LONG TERM INITIATIVESLONG TERM INITIATIVES ULTIMATE OBJECTIVEULTIMATE OBJECTIVE

LONG TERM PROFITABILITY AND SUSTAINABLE GROWTH


CURRENT PRODUCT MOVEMENT CROSS-BAGGING INITIATIVECURRENT PRODUCT MOVEMENT CROSS-BAGGING INITIATIVE

The cross bagging initiative will result in a different movement of product to the market without changing the final brand leading to

Lesser time to market

Logistics cost savings

Cost savings in transportation, packaging, inventory and raw material procurement through increased coordination among the various units; potential to reduce transportation costs

1

COORDINATED GROUP NEGOTIATIONSCOORDINATED GROUP NEGOTIATIONS2

In the past target markets were served predominantly by one of three companies–but overlap markets exist in Java, Bali and Kalimantan leading to high transportation costs in those areas

SEVERAL OPERATIONAL IMPROVEMENTS


16.9 16.9 16.9 16.9

1.516.9 17.117.7

0.80.2

18.4

15.0

16.0

17.0

18.0

19.0

2006 2007 2008 2009

Installed base capacityIncremental capacity from de-bottlenecking/optimization plans

4

3

to set up captive power supply

Rationale for controlling of power vs. current supply

The Company needs reliable and cost effective energy/ power supply

Expected to lead to lower operating costs and minimize loss of production capacity

Captive power supply are estimated to provide significant cost savings

CAPACITY ESTIMATES (MILLION TONS) CAPACITY ESTIMATES (MILLION TONS)

SET UP POWER SUPPLY TO CONTROL ENERGY COSTSSET UP POWER SUPPLY TO CONTROL ENERGY COSTS

CAPACITY OPTIMIZATION PROGRAMS


17.1 17.7 18.4 18.4 18.4 18.4 18.4 18.4

1.84.0 4.8 5.0

2007 2008 2009 2010 2011 2012 2013 2014

DOMESTIC CAPACITY BUILD-OUT (MILLION TONS)DOMESTIC CAPACITY BUILD-OUT (MILLION TONS)

Base capacity New capacity Current capacity of SGG is in line with our target to maintain leading market share position

To strengthen this position we are constructing new cement plants (2 x 2.5 mio tons of cement) to expand capacity to meet domestic and export demand

Plants are targeted to come online starting 2011

Additional capacity will help diversify market base, both domestic and export market

17.117.7

18.4 18.4

20.2

22.423.2

GREENFIELD/BROWNFIELD PROJECTS

DOMESTIC CAPACITY EXPANSIONDOMESTIC CAPACITY EXPANSION

23.4


SUMARY OF SMGR’s PROJECTS IN 5-YEAR DOWN THE ROADS

1.401,790573410Sub Total

1.3730:7030020112008962 x 35New Plant - Sulawesi

1.5730:70300201120081102 x 35New Plant – Java

1.4330:7015020112008501 x 35Pangkep

1.3930:70490201120081463 x 35Indarung

1.3230:70550201120081712 x 65Tuban

Internal : Ext.CompletedStart

InvestmentUS$ mn/MW

FundingCoal Requirement(‘000 tons)

ConstructionInvestment(US$ mn)

Capacity (MW)

Power Plants Location

1346705.0Sub Total

12630 : 70201120083152.5Sulawesi

14230 : 70201220083552.5Java

Internal : Ext.CompletedStart

Investment US$/Tons

FundingConstructionInvestment(US$ mn)

Capacity(mn tons)

New Plants Location


AGENDA

I. Indonesian Cement Highlights




V. Appendix


30.7 30.733.2 33.9 33.0

35.1

27.2 27.530.2 31.5 32.1

34.2

5.6%

4.7%5.1%

5.4%

4.4%

6.3%

-5.0

5.0

15.0

25.0

35.0

45.0

55.0

65.0

2002 2003 2004 2005 2006 FY 2007 (E)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Source: Indonesian Cement Association, *) Courtesy of Bahana Research Institute (P)

Cement ProductionDomestic consumption GDP growth %

(mio tons)

*)*)

Growth:

5.8%

Growth:

1.1%Growth:

9.7%Growth:

4.2%Growth:

1.8% Growth:

6.6%

INDONESIA HAS EXPERIENCED SOLID ECONOMIC AND DOMESTIC CEMENT CONSUMPTION GROWTH

GDP GROWTH AND CEMENT PRODUCTION & DOMESTIC CONSUMPTION IN INDONESIAGDP GROWTH AND CEMENT PRODUCTION & DOMESTIC CONSUMPTION IN INDONESIA


SGG has highest overall capacity

The utilization rates are the best in

the local industry

Wide geographical coverage through

dispersed factories

COMPARISON WITH PEERS (Cement Production – 2007)COMPARISON WITH PEERS (Cement Production – 2007)

Semen Gresik (SG)

Semen Padang (SP)

Semen Tonasa (ST)

Company name Location Capacity (mm ton) Utilization*) (%)

Semen Gresik Gresik & Tuban, East Java 8.2

Semen Padang Indarung, West Sumatera 5.4

Semen Tonasa Pangkep, South Sulawesi 3.5

SGG – Total Capacity Padang, Gresik/Tuban, Pangkep 17.1 89%

Player 1 Citeureup (W-Java), Tarjun (South Kalimantan)15.65

Player 2 Narogong, Cilacap, Central Java 8.70

Others NA 3.62

Industry 45.07 76%

MARKET DINAMICS

KEY HIGHLIGHTSKEY HIGHLIGHTS

*) Domestic UtilizationSource: Indonesia Cement Association

67%

57%96%

90%

90%

84%


SGG’s BRANDS LEAD INDONESIA’s TOP MARKETS

Source: Indonesia Cement Association

SGG ’s brands are well-recognized throughout Indonesia Dominant market position in Indonesia’s top three markets which comprise 88% of total

domestic consumption Strong brand loyalty allows Semen Gresik to dominate East Java with 73% market share

Market share by major market FY2007

SumateraSulawesi

JavaSulawesi total: 2.07mn tons

Indocement 12.7%

Semen Bosowa 19.4%

SGG 67.9%

SGG 49.1%Semen Andalas

17.4%

Indocement 15.3%

Other 18.2%

SGG 37.3%Holcim 22%

Indocement 39.3%

Other 1.4%

Java total: 19.66mn tons

Sumatera total: 8.04mn tonsKalimantan total: 1.98mn tons

Indocement 28.6%

Semen Bosowa 4.1%

SGG 61%

Holcim 6.3%


SGG HAS STRONGER CREDIT METRICS VS. ITS PEERS

0.1x

0.5x

1.1x

0.2x

2.0x

1.3x

2002 2003 2004 2005 2006 2007

DEBT/EBITDADEBT/EBITDA

DEBT/EQUITY DEBT/EQUITY

0.5x

0.7x

0.1x

0.4x

0.2x0.0x

2002 2003 2004 2005 2006 2007

Source: Company financials, based on book values of debt and equityRegional peers include Anhui Conch, CNBM, Ambuja Cements, ACC, Grasim, Indocement, Holcim Indonesia, Siam Cement, Siam City Cement, Taiwan Cement, Asia Cement Corp, Lafarge Malayan

Regional peer median (2006): 1.9x

Regional peer median (2006): 0.7x

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Tim

es

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Rp

Bill

ion

Equity 3,111 3,333 3,642 4,467 5,500 6,585Market Cap 4,834 4,656 10,973 10,558 21,531 33,217Ratio 1.60 1.40 3.00 2.40 3.90 5.00

2002 2003 2004 2005 2006 2007

PRICE TO BOOK VALUE (2002 – 2007)PRICE TO BOOK VALUE (2002 – 2007)

6%

20%

4%

35%29%

2003 2004 2005 2006 2007

DEBT/CAPITALDEBT/CAPITAL


Main Office:Main Building of Semen Gresik

Jln. Veteran Gresik 61122 – IndonesiaPhone: (62-31) 3981731 -2, 3981745

Fax: (62-31) 3983209, 3972264

Representative Office:Graha Irama Building, 11th Floor,Jln. HR Rasuna Said, Kuningan, Jakarta 12950 – IndonesiaPhone: (62-21) 5261174 – 5Fax : (62-21) 5261176

www.semengresik.com

T h a n k y o uT h a n k y o uDISCLAIMER

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 mission there from which might otherwise arise is hereby expresses disclaimed.

The information contained in this report is not be taken as any recommendation made by PT Semen Gresik (Persero) Tbk or any other person to enter into any agreement with regard to any investment mentioned in this document. This report is prepared for general circulation. It does not have regard to the specific person who may receive this report. In considering

any investments you should make your own independent assessment and seek your own professional financial and legal advice.

striving to maximize value

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