Consolidated Financial Statements With Independent Auditors Report - PDF document

Consolidated Financial Statements With Independent Auditors’ Report December 31, 2006 With Comparative Figures for 2005 PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES

These consolidated financial statements are originally issued in Indonesian language. PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS WITH INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2006 WITH COMPARATIVE FIGURES FOR 2005 Table of Contents Page Independent Auditors’ Report Consolidated Balance Sheets …………………………………………………………………………. 1-2 Consolidated Statements of Income ………………………………………………………………….. 3 Consolidated Statements of Changes in Shareholders’ Equity ……………………………………. 4 Consolidated Statements of Cash Flows …………………………………………………………….. 5-6 Notes to the Consolidated Financial Statements .…………………………………………………… 7-54 ***************************

This report is originally issued in Indonesian language. Independent Auditors’ Report Report No. RPC-6573 The Shareholders, and the Boards of Commissioners and Directors PT Indocement Tunggal Prakarsa Tbk. We have audited the consolidated balance sheet of PT Indocement Tunggal Prakarsa Tbk. (the “Company”) and Subsidiaries as of December 31, 2006, and the related consolidated statements of income, changes in shareholders’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of all associated companies, the investments in which are accounted for in the consolidated financial statements using the equity method. The carrying values of these investments represent approximately 0.51% of the total consolidated assets as of December 31, 2006, while the related equity in net earnings of these associated companies amounted to Rp9,686,380,530 in 2006. The consolidated financial statements of PT Indocement Tunggal Prakarsa Tbk. and Subsidiaries for the year ended December 31, 2005, were audited by Prasetio, Sarwoko & Sandjaja, whose report dated January 20, 2006, expressed an unqualified opinion on those statements. We conducted our audit in accordance with auditing standards established by the Indonesian Institute of Accountants. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the 2006 financial statements referred to above present fairly, in all material respects, the financial position of PT Indocement Tunggal Prakarsa Tbk. and Subsidiaries as of December 31, 2006, and the results of their operations and their cash flows for the year then ended in conformity with generally accepted accounting principles in Indonesia. Purwantono, Sarwoko & Sandjaja Benyanto Suherman Public Accountant License No. 05.1.0973 January 22, 2007 The accompanying consolidated financial statements are not intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Indonesia. The standards, procedures and practices applied to audit such consolidated financial statements are those generally accepted and applied in Indonesia.

These consolidated financial statements are originally issued in Indonesian language. PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2006 With comparative figures for 2005 (Expressed in rupiah) Notes 2006 2005 ASSETS CURRENT ASSETS Cash and cash equivalents 2c,3 43,386,264,747 498,010,383,632 Time deposits 2c 8,786,299,848 - Short-term investments 2d 1,300,650,000 5,428,752,650 Trade receivables 2e,4,12 Related party 2f,23 35,942,984,396 47,897,758,168 Third parties - net of allowance for doubtful accounts of Rp11,067,732,391 in 2006 and Rp13,835,340,496 in 2005 24j 581,313,208,397 505,963,586,184 Other receivables from third parties - net of allowance for doubtful accounts of Rp7,371,980,358 in 2006 and 2005 2e,5 11,962,963,023 5,448,888,761 Inventories - net 2g,6,12 953,204,236,576 911,291,789,489 Advances and deposits 6,24a 72,485,222,241 119,605,903,683 Prepaid taxes 11 14,984,540,549 37,854,330,331 Prepaid expenses 2h 18,336,034,367 24,263,350,909 TOTAL CURRENT ASSETS 1,741,702,404,144 2,155,764,743,807 NON-CURRENT ASSETS Long-term derivative assets 2q,25 - 84,171,508,110 Due from related parties 2f,23 49,961,946,164 57,224,578,033 Deferred tax assets - net 2r,11 5,894,750,585 5,404,241,660 Long-term investments and advances to associated company - net of allowance for doubtful accounts of Rp13,720,944,026 in 2006 and 2005 2b,2f,7,23 49,020,750,634 42,873,603,424 Fixed assets - net of accumulated depreciation, amortization and depletion of Rp4,328,988,778,381 in 2006 and 2i,2j,2k, Rp3,848,727,414,347 in 2005 2l,8,12 7,679,069,065,279 7,811,938,786,956 Restricted cash and time deposits 12,13 479,000,000 302,771,129,921 Other non-current assets 2h,2m,8 72,152,413,936 76,231,152,013 TOTAL NON-CURRENT ASSETS 7,856,577,926,598 8,380,615,000,117 TOTAL ASSETS 9,598,280,330,742 10,536,379,743,924 The accompanying notes form an integral part of these consolidated financial statements. 1

These consolidated financial statements are originally issued in Indonesian language. PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (continued) December 31, 2006 With comparative figures for 2005 (Expressed in rupiah) Notes 2006 2005 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Short-term loan 9 45,100,000,000 - Trade payables 10 Third parties 139,479,645,891 168,495,389,817 Related party 2f,23 - 2,278,762,995 Other payables to third parties 8,17,24i 115,383,815,567 84,159,162,713 Accrued expenses 12,20 183,463,901,989 157,216,319,564 Taxes payable 2r,11 69,089,659,782 34,552,510,560 Derivative liabilities - net 2q,25 3,738,655,113 14,030,194,787 Current maturities of long-term debts Loans from banks and financial institutions 2f,12,23 252,930,774,797 393,200,000,000 Obligations under capital lease 2k,8,13 2,993,554,562 1,912,022,428 TOTAL CURRENT LIABILITIES 812,180,007,701 855,844,362,864 NON-CURRENT LIABILITIES Long-term debts - net of current maturities Loans from banks and financial institutions 2f,12,23 1,972,974,161,926 3,476,891,067,797 Obligations under capital lease 2k,8,13 5,912,495,283 119,749,997 Long-term derivative liabilities 2q,25 75,939,001,160 - Due to related party 2f,23 5,482,141,192 5,695,739,069 Deferred tax liabilities - net 2r,11 606,268,637,255 495,137,737,395 Estimated liability for employee benefits 2o,22 54,187,223,918 47,867,513,812 Estimated liability for post-retirement health- care benefits 2o,22 7,557,608,000 4,409,314,000 Provision for recultivation 24q 17,843,913,938 12,716,256,641 Deferred gain on sale-and-leaseback transactions - net 2k 7,172,805,899 8,316,073,554 TOTAL NON-CURRENT LIABILITIES 2,753,337,988,571 4,051,153,452,265 SHAREHOLDERS’ EQUITY Capital stock - Rp500 par value per share Authorized - 8,000,000,000 shares Issued and fully paid - 3,681,231,699 shares 14 1,840,615,849,500 1,840,615,849,500 Additional paid-in capital 2t,15 1,194,236,402,048 1,194,236,402,048 Other paid-in capital 16 338,250,000,000 338,250,000,000 Revaluation increment in fixed assets 2i,8,11 229,970,296,236 229,970,296,236 Differences arising from restructuring transactions among entities under common control 2b 1,165,715,376,569 1,165,715,376,569 Differences arising from changes in the equity of Subsidiaries 2b 973,936,686 6,333,962,836 Retained earnings Appropriated 18 150,000,000,000 125,000,000,000 1,113,000,473,431 Unappropriated 729,260,041,606 TOTAL SHAREHOLDERS’ EQUITY 6,032,762,334,470 5,629,381,928,795 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 9,598,280,330,742 10,536,379,743,924 The accompanying notes form an integral part of these consolidated financial statements. 2