Indocement Tunggal Prakarsa, PT.

Report to Shareholders
• Consolidated net income before tax turned around to
Rp757 billion from a net loss of Rp1,082 billion in 1998.
• Cash flow provided by the operations amounted to Rp923
billion, 1.6 times last year’s figure of Rp564 billion.
• Export sales rose by 80 percent to 2.2 million tons,
providing cash generation of US$39 million.
Dear Shareholders,
This year marked a significant transition for your Company from the
harsh realities of the Asian economic crisis.
Consolidated net income before income tax turned around to Rp757
billion from a net loss of Rp1,082 billion in 1998. This was brought
about mainly by foreign exchange gain arising from the restatement
of foreign denominated loans using an end-of-the-year middle rate of
Rp7,100 per one US dollar compared to Rp8,025 applied at the end
of last year.
Consolidated gross profit rose 3 percent to Rp635 billion compared
to Rp616 billion in 1998. However, consolidated income from
operations dropped 15 percent to Rp371 billion from Rp437 billion
last year .
Cash flow provided by operations amounted to Rp923 billion,
an improvement of Rp359 billion compared to the previous year.
The return on equity, rebounded to positive 47 percent from a
negative of 95 percent.
I N D O C E M E N T A N N U A L R E P O R T 1 9 9 9 R e p o r t t o S h a r e h o l d e r s
11
OPERATING HIGHLIGHTS
Export sales volume nearly doubled the previous year's level as
successful market penetration strategies made inroads to additional
markets in Asia, Africa and the Middle East.
Recognizing that the marketing of our cement both locally and
abroad requires continuing improvement and would necessitate
significant effort and commitment, we have started the restructuring
of our marketing organization to be able to concentrate more
on development and sales, as well as a strengthened presence in
both markets.