PUBLIC EXPOSE

Jakarta, 24 March 2009

Agenda General Information about Indocement Indonesia Current Market Condition Financial Update Investment Plan Strategy Outlook

Public Expose. March 24. 2009 2008 Year End Result

Indocement Shareholders Structure

Public 22%

PT Mekar Perkasa 13%

Birchwood Omnia Ltd. (100% owned by HC Group) 65%

Public Expose. March 24. 2009 2008 Year End Result

Indocement Businesses

Cement
Citeureup - 9 Plants Cirebon - 2 Plants Tarjun - 1 Plant

Ready -Mix Concrete Ready-Mix

PT Indomix Perkasa 6 Plants (Capacity : 360.000 cubic meter) PT Pionirbeton Industri * 7 Plants (Capacity : 420.000 cubic meter)

Others
PT PT Dian Dian Abadi Abadi Perkasa Perkasa 99.9% 99.9% (Cement (Cement Trading) Trading) PT PT Multi Multi Bangun Bangun Galaxy Galaxy * * 99.9% 99.9% (Terminal-Land (Terminal-Land Operation) Operation) PT PT Pama Pama Indo Indo Mining Mining -- 40% 40% (Mining Services in Tarjun) (Mining Services in Tarjun) Stillwater Stillwater Shipping Shipping Corp.* Corp.* -- 50% 50% (Shipping) (Shipping) PT PT Bahana Bahana Indonor* Indonor* -- 50% 50% (Owns (Owns & & operates operates one one ship ship & & one one floating floating terminal) terminal) PT PT Cibinong Cibinong Center Center Industrial Industrial Estate Estate -- 50% 50% (Industrial (Industrial Estate Estate in in Citeureup) Citeureup) Indocement Indocement (Cayman (Cayman Island) Island) Limited Limited -- 99.9% (Investment) 99.9% (Investment) PT PT Gunung Gunung Tua Tua Mandiri Mandiri -- 51% 51% (Aggregates (Aggregates Business) Business) PT PT Mandiri Mandiri Sejahtera Sejahtera Sentra Sentra * * -- 40% 40% (Aggregates (Aggregates Business) Business)

* Owned indirectly through a subsidiary

Public Expose. March 24. 2009 2008 Year End Result

Indocement Plant Locations and Major Terminal

Tarjun Factory

Tj. Priok Terminal

Semarang Terminal

Citeureup Factory

Cirebon Factory

Surabaya Terminal

Lombok Terminal

Total current capacity of Indocement is 17.1 mt cement (Citeureup 11.9 mt, Cirebon - 2.6 mt and Tarjun - 2.6 mt)
Public Expose. March 24. 2009 2008 Year End Result

Indonesia Cement Market Analysis

Extraordinarily robust domestic cement market

47.5

47.5 +9.7%

46.1

44.9

45.5

46.2 +11.4%

+7.0% +4.2% +1.8% 30.2 27.5 31.5 +1.5% 34.2 31.9 38.1

2003

2004

2005

2006

2007

2008

Domestic Consumption

Total Supply

Consumption Growth
Source: ASI Published data

* in mio tons

Domestic cement consumption reached 38.1 million tons in 2008, grew by 11.4% compared to 34.2 million tons in 2007 Cement consumption in Java grew by 8.1%, while outside Java grew by 15.9% as a result of record commodity prices, particularly in mining and plantation, which prevailed throughout 2007, and extending well into the first half of 2008. The sales volume outside Java as a percentage of national sales growth to 44.2% from 42.5% in 2007

Public Expose. March 24. 2009 2008 Year End Result

Domestic Consumption Growth by area 2008

Market Growth:
>20% 15-20% 10-15%

5-10% <5%

Strong national growth of 11.4% in 2008. Meanwhile, Indocement grew by 14.2%

Public Expose. March 24. 2009 2008 Year End Result

Market Shares Composition

29.8%

25.1%

30.6%

24.4%

30.9%

31.7%

15.2%

14.6%

21.7%

14.2%

13.6%

14.1%

21.9%

12.3%

12.7%

8.4%

8.6%

13.5%

2005
Indocement Holcim

7.9%

2006
Semen Gresik

2007
Semen Padang

2008
Semen Tonasa

Note: Gresik Group is a combination of Semen Gresik, Padang, and Tonasa Indocements market share show increasing trend due to its capability to produce and distribute its product to the market place, particularly to its home market.

Public Expose. March 24. 2009 2008 Year End Result

8.3%

Indocement Sales Highlights

Market Share
30.6% 29.5% 30.0% 29.7% 31.7% 30.9%

9.6 mio t

10.0 mio t
3.2 mio t

10.7 mio t
3.8 mio t

12.3 mio t

2.5 mio t

2.3 mio t

2005

2006 Domestic

2007 Export

2008

Cement domestic sales volumes reached 12.3 million tons, an increase of 14.7%
from 10.7 million tons in 2007. Meanwhile, export sales volume was reduced to 2.3 million tons from 3.8 million tons in 2007 in order to bring in adequate supply to the domestic market Market share in YTD Oct 08 grew to 31.7% because of companys ample capacity to supply strong demand especially in its home market

Public Expose. March 24. 2009 2008 Year End Result

Financial Results 2008

Consolidated Income Statement 2008 Sales Volume (k Tons) Net Revenues Cost of Revenues Gross Profit
as % of Net Revenues

2007 14,563 7,324 4,561 2,762

37.7%

Change 1% 34% 26% 46%

14,662 9,780 5,756 4,025

41.1%

Operating Expenses Income from Operations

as % of Net Revenues

1,565
2,460
25.2%

1,169
1,593
21.8%

34%
54% 42% -40% 130% 78%

EBITDA
as % of Net Revenues

3,059
31.3%

2,158
29.5%

Interest Expenses Forex Gains/(Losses) NET INCOME

Public Expose. March 24. 2009 2008 Year End Result

-124 -73 1,746

10

-206 -32 980

Financial Results 2008

Consolidated Balance Sheet & Financial Highlights 2008 Current Assets Non Current Assets Current Liabilities Non Current Liabilities Equity + Minority Interest Assets 3,471 7,815 1,944 821 8,522 11,287 2007 2,249 7,789 779 2,344
974 776

80 832 68 55 45 292 164 102 87 42

Net Borrowing to Assets Net Gearing

29

23 11 37

0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 54 16

Net Debt Position (in USD mio)

698 545 437

6,915 10,038

312 246 117 3

2000 2001 2002 2003 2004 2005 2006 2007 2008

Solid Balance Sheet with strong financial condition The outstanding loan balance per 31 December 2008 is only USD 75 mio. Cost of fund: LIBOR (or SBI) plus 90 bps Gearing ratio and debt level at the lowest level in more than a decade.
Public Expose. March 24. 2009 2008 Year End Result

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Investment Plan Strategy

Conversion two diesel engine - capacity 2 x 15 mw - to gas (dual fuel) in Citeureup plant and was fully completed in October 2008 Two new cement mills now are under construction in Cirebon that will add 1.5 million tons of cement

Due to current slow-down market demand, we delay the project & expected to be ready in operation by end of 2009. Due to current weak domestic and export market condition; we expect current capacity will be more than enough in next 2-3 years period!
+ 1.5 mt + 0.6 mt

Future investment plans to increase capacity: Postponed!

16.5 mt

17.1 mt

18.6mt

2005
Public Expose. March 24. 2009 2008 Year End Result

2007
12

2009

Investment Plan-Vertical Integration Strategy

In 2008, Indocement expanded into aggregate business by having an integrated line of business in ready-mix and aggregates Two aggregate quarries:

PT Gunung Tua Mandiri (GTM) quarry with 1.5 MT p.a. capacity and 30MT reserves in Rumpin -Tangerang area and PT Mandiri Sejahtera Sentra (MSS) quarry with 0.5 MT p.a. existing capacity and total of 100MT reserve in Purwakarta W. Java area Note: Indocement own 51% stake in GTM and 40% stake in MSS through subsidiary (and planned to be at least majority stakes after certain conditions are fulfilled in Q2/2009)
130 mt

MSS

30 mt
GTM 2007 GTM 2008

Public Expose. March 24. 2009 2008 Year End Result

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CSR Activities in 2008

Developed plantations of jatropha curcas in a total area of 70 hectare in Citeureup, 60 hectare in Cirebon, and 40 hectare in Tarjun, with around 400,000 trees. Developed two processing plants of municipal solid waste into compost and biomass, Citeureup and Cirebon. Launched a pilot project of biogas made of cattle manure in cultivate village of Citeureup factory.

Public Expose. March 24. 2009 2008 Year End Result

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Awards 2008

4 March 2008: Received FWHB (Forum Wartawan Harian Bogor - Bogor daily Journalist Forum) Award Contributing to pres development. 12 June 2008: Received Indonesias Most Admired Company Award (IMAC) as The Best Performance Company Image for the cement category. 31 July 2008: Achieved Green rating for PROPER (Period: 2006-2007). 4 August 2008, Received Top 7 Best Managed Companies in Indonesia 2008 - Finance Asia Magazine, Hongkong 6 August 2008: Received Top Brand Award 2008 for cement category Marketing Magazine & Frontier Consulting Group.

Public Expose. March 24. 2009 2008 Year End Result

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Awards 2008

11 September 2008: Received The Value of Creator Award Swa Magazine & Stern Steward & Co. Management Consultant. 5 November 2008: Received Best 5 Indonesian Financial Reporting Award 2008 for manufacturing industry category. 11-13 November 2008: Two Quality Control Cycles (QCC) of Indocement achieved the best performance at Indonesia Quality Convention 2008: 26 November 2008: Received Business Review Award 2008. 15 January 2009: Received The Best 4 in Corporate Governance Awards 2008 for Indonesia companies - The Asset, Hongkong. 23 Februaryi 2009 Indocement achieved 3 awards of Indonesian CSR Awards 2008.

Public Expose. March 24. 2009 2008 Year End Result

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Outlook - 2009

Domestic cement consumption tends to weaken in 2009 and expected

negative growth of -6% due to the current tight liquidity condition and weakening commodity market. The trend of stronger residential market than the infrastructure or highrise building still continue in 2009, but expect some higher proportion of bulk cement (about 25~30%) only after the infrastructure projects is executed intensively by Government to create employment. Lower export market, as a a tight competition due to lower freight costs and slow down economy in the region, meanwhile our local coal purchase price is higher than what other countrys cement manufacturer purchase Recent high depreciation of IDR against USD & other foreign currency cause higher costs of production as more than 50% costs in USD equivalent Despite, the current drop in fuel cost (but not the domestic coal price yet) helps the Companys cost structure

Public Expose. March 24. 2009 2008 Year End Result

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Thank you

Public Expose. March 24. 2009 2008 Year End Result

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